Full text of Commercial and Financial Chronicle : November 24, 1955, Vol. 182, No. 5484

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ESTABLISHED 1S39

oFWiH^

■*o»'

Financial

Chronicle

Reg. U. 8. Pat. Office

Volume

Number 5484

182

New York

Price 40

7, N. Y., Thursday, November 24, 1955

Cents

Copy

a

EDITORIAL

We See It

As
Can it

old fashioned idea of
within

no

were

"too many

can

one

from

The

keeping public expenditures

public receipts? Of

once

said that

Birds" in the Senate—and

possibly imagine the senior Senator

Virginia being contemptuous of fiscal

pru¬

dence. Yet ex-President Truman is rather fond
of

deriding the Eisenhower Administration - and
the Republican party in general for their con¬
cern about a balanced
budget. And only the oth2r
day, Mr. Stevenson, the only avowed candidate
for

the

Democratic

nomination

next

year,

re¬

rules

of

honored
but

a

fiscal

sound

pf biwn

know

in

the

breach

than

in the

virtually all politicians felt it

and

skills; it is in¬

possibility for 1956.

that

arid

will

and

deadens

no

niore

than

a

Ti
was

attempt to apply

at

home.

As

such,

it

NOW IN
are

REGISTRATION

afforded

a

—

tax

on

distilled

on

its

products,

now

looms

as

a

distinct

last $1.50 of the Federal excise

1,

was

1954.

pro¬

to be removed

on

Because the Federal

Budget was not balanced, and be¬
cause

Federal

the

Treasury was in

compelling need of funds, the $10.50
rate

was

extended for

an

additional

then for another.

year, and

a
balanced Federal Budget
rapidly approaching, tnere is no
longer pressing need for the limited

With

into

now

repre¬

page

excise

imposed in 1951, with the

April

extra funds that the added

on a

on

e

rate

vision that it

initiative.

translation

City

Federal

$1,150

per

produces, and therefore, asf
Congress makes anticipated tax re¬
ductions
next year, it can be ex¬
gallon

'luomas J. Donovan

pected that the liquor excise will be
allowed to revert to $9 as scheduled by law.
Reduction of the Federal liquor

32

the ever-upward trend

excise would reverse
of Federal liquor taxation since

*An address by Under-Secretary Williams at the 42nd National
Foreign Trade Convention, New York City, Nov. 14, 1955.

porate securities

Continued

on

page

38

Underwriters, dealers and investors in cor¬
of issues new registered with the SEC

complete picture

and potential undertakings in our "Securities in Registration" Section,

DEALERS

the

excise

believe

Continued

36

SECURITIES

an

of

reduction

spirits from $10.50 to $9 a gallon, long awaited by the
liquor industry as a first step toward a fair and equitable

do

groups

DONOVAN

New York

A

effective in creating a progressive world economy if the
world
comes
to understand
them
and
is
willing

came the New Deal which soon
proceeded
glorify deficits and to pour scorn upon those
who would permit considerations of sound public

Then

page

and

J.

Vice-President, Licensed Beverage Industries, Inc*

global basis the economic
truths learned from our domestic experience. The prin¬
ciples of dynamic capitalism which have made our free
enterprise system so eminently successful will be equally

to

on

THOMAS

enterprise

the highest standard
We believe that only

ideas

firmly

lowed

sents

possible.

Continued

herewith:

We

is

any such policies.
surpluses were a subject for self-gratulation; deficits had for the most part to be ex¬

were

-

world-wide terms of the policies fol¬

Walter Williams

Fiscal

if that

as
to current developments
long-range outlook for individual com¬
panies and the several industries. These articles,
especially written for the "Chronicle", begin

us

nations

industries

and the

Underlying our domestic economic
policy, therefore, is the view that
the widest possible scope should be
g'vftp to individual enterprise.
American economic foreign policy

„found it advisable to disavow

away

that

incentives

to

homage to the basic principle of a careful
balancing of public outlays with public revenue.
Recklessness in this area Was supposed to be
politically dangerous as well as generally repre¬
hensible. Office holders and legislators generally

pay

plained

free

related

only be fully utilized if
there are adequate incentives and
ooportunities afforded to individuals.
We reject statism because it destroys

observance,
necessary

the

privileged to present today
opinions of the chief executives of some of ihei
leading producers in the liquor, wine, beer, and

dividuals who have ideas and skills.
skills

more

were

to

The "Chronicle" is

the

ingenuity be realized. We

have

r cn

course,

management

devoted

are

when prudence
in the management of public finances was a
cardinal virtue. True, there were times when the
was

developments and long-range trends set fortfc
by chief executives of some of the leading companies
in articles especially written for the "Chronicle."

of living ever known on earth.
through such a system can the productive possibilities

sarcastically to the budget mindedness of
the Administration in connection with foreign
policy.
time, of

Americans

We

system because it has brought to

ferred

There

Current

Under-Secretary of Commerce

Under-Secretary Williams points out that our foreign
economic policy, like Our domestic policy* is aimed
toward giving scope to individual enterprise, along with
a free world
economy. Says, however, we must strike a
reasonable balance between domestic and foreign con¬
siderations. Holds, in broadest possible terms, objec¬
tives of our foreign policy are to encourage other coun¬
tries to follow policies which result in soundly basic
economic progress. Stresses international trade as key¬
stone of our foreign economic policies.

the party has

course,

HON. WALTER WILLIAMS*

By

scoffing at the

year

Senator Byrd-^-President Truman
there

Promise and Performance

really be that the Democratic party will

before the country next

go

Outlook for Liquor, Wine
Beer and Related Industries

Foreign Economic Policy-

starting on page 50.

State, Municipal

in

and

U. S. Government,
State and

U. S. INDUSTRIES

Municipal
A

New

Growth

Situation

NEW

HAnover 2-3700
On

chemical

BOOKLET

Bonds and Notes

REVIEW"

Request

ARE NOW AVAILABLE
ON

j. r. wllliston & CO.

BANK

ESTABLISHED
MEMBERS
ANO

bond

Housing Agency

"ATOMIC ENERGY
4-page study

CORN EXCHANGE

Public

COPIES OF OUR

Securities
telephone:

^

"

OTHER

NEW

STOCK

YORK
ANO

I

8 8 s

STOCK

THE FIRST NATIONAL CITY BANK

EXCHANGE

OF NEW YORK

COMMOOITY EXCHANGES

department

115

30 BROAD ST., N. Y.

Broadway, New York 6, N. Y.
Miami

Beach— Rye,

N.

Bond

Y.

DEPARTMENT

THE

HARRIS, UPHAM & C°
Members New York Stock

120

Dept. Teletype: NY 1-708

BOND

REQUEST

34

Exchange

Chase Manhattan

BROADWAY, NEW YORK 5
offices

from

coast to

bank

coast

Net Active Markets Maintained
To

T. L. Watson &Co.
ESTABLISHED

1832

Members

Dealers, Banks and Brokers

Public

American

Exchange

Stock

Common Stocks

25
/

BROAD

STREET

NEW YORK 4, N. Y.

Analysis

•

PERTH AMBOY

upon

request

All

CANADIAN

DEPARTMENT

'

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody

a

Co.

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT




On

Teletype NY 1-2270

£cathu?€4t COMPANY
Dallas

Executed

Canadian Exchanges At Regular Rates

Utility Bonds,

Preferred and

FIRST

Exchange

Orders

General Gas

BONDS & STOCKS

SECURITIES
Commission

New York Stock

CANADIAN

CANADIAN

115 BROADWAY

NEW YORK

1

Domduox Securities
6RPORAT10?i

IRAHAUPT &CO.
Members New York Stock Exchange
end other Principal Exchanges

111

40 Exchange

Place, New York 5, N.Y.

Broadway,*N. Y. 6

WOrth 4-6000

Teletype NY 1-2708

NORTH LA SALLE ST.

CHICAGO

Teletype NY 1-702-3

WHltehall 4-8161

Boston

Telephone: Enterprise 1820

The Commercial and Financial Chronicle

(2186)

2

The
Complete

participate and give their
they to be regarded,

•re

specialize

Our

complete private wire
nine principal

tem to
over

sys¬

cities and

leading banks, brokers

200

and dealers enables

us

to

exe*

orders efficiently.

cute your

GEORGE

blocks of

V.

Angeles, Calif.
Members Los Angeles Stock Exchange
Electronics

GROWTH

that

factor

Corp.
the determining

was

led

stock

common

select

to

me

Electronics

Hoffman

the

Corporation

the "Security I

as

I

Established
Associate

Broadway, New York

went

5

Teletype NY 1-40

WOrth 4-2300

all

of
to

fastest

our

PHILADELPHIA

•

FRANCISCO

SAN

ICS.

As

Members

York

Stock

Exchange

Stock

Exchange

1953

120 BROADWAY,

NEW YORK S

TEL. REctor 2-7815

of

sales

Los

business

in

the

have

just three years, the televis¬
industry became a $1 billion
business, rising from $50 million
in sales at the factory level in
ion

By

1950.

billion in

$1.3

of contrast, it took the auto

industry 10 years—and the com¬

to reach

mercial airlines 25 years

Trading Markets

American Furniture

Company

Alabama-Tennessee Natural
Gas

Company

Commonwealth Natural Gas

would

Company

had purchased 100 shares

first

$22V2

presently

finding,

missiles,

I

have

would

Scott, Horner &
Mason, Inc.
Lynchburg, Va,
Tele. LY 62

be

The high of this year

have

shown

an

The

the

PLACEMENT

blocks of

"OVER-THE-COUNTER"
STOCKS & BONDS

ESTABLISHED

(31%) would
of

over

Electronics

is

Cor¬

primarily engaged in

manufacture

It goes

and

of

sale

a

most desirable

made

TRADING

fire

tential

where

guided

is

other

G

and

the
of

is

of

one

three

manufacturers

the

air¬

borne

portion of the TACAN

sys¬

of

Mindanao Mother Lode Mines

Marinduque Iron Mines

1

his

aircraft, both
direction

and

of

of

installed

90%

of

Air Force

all

within

the

and

next

1919

Security Dealers Ass'n

Exchange Place, Jersey City 2, N. J.
HEnderson 5-9400 Teletype J CY 783
New York City
Telephone BArclay 7-0045




fact

basis,

and

earnings:

up

rates

31, 1954

or

with

from

the

Back

in

the

but the
in view

$42% million—as
$50 %

million

their

net

1953.

for

the

on

ago

years

over

a

common

This is

in¬

an

the 1953 net profit

the

development
special

and

electronic

tal

It

is

anticipated

of

Sales for 1955 should to¬

slightly

than $44 million,

more

show

slightly better than $1V2

agencies.

In

1954,

ap¬

profits, after taxes,

This would be about the

sales resulted from sales of

share

apparatus

agencies

Govern¬

to

and

special

40%

of

the

company's sales from the produc¬

television

and

radio

are

earnings

,

or

At

exceedingly forward step this
when

on

July 1 they acquired

National Fabricated Products, Inc.

Chicago.

This

ponent field.

the

field.

-

They

-

were

of

one

as

new

tranjptor

company

present

power
rectifier
also the first to

a

which

recently written

many

solar

cell

battery,
up

in

magazines.

Hoffman

Electronics

recently introduced

a

Corp.

new

has

line of

history,

time

are

the

com¬

the strongest

showing

Current

of June 30, 1955—of over

as

York

of

Guaranteed

there

are

The

suc¬

of Illinois

one

tion

The

are

listed

on

the New

York Stock Exchange and the Los

Angeles

Stock Exchange.

"sister"

a

>4%%

on

yield basis, with finances

and management

sound, and with

the greatest growth in the field of
electronics

ahead, it

seems

to

Hartford

When

must pay a

King St. West—Toronto,'.Canada
wwtii

Since 1932

Specialists in

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

CAROLINA

of

MUNICIPAL BONDS

■F. W.-

CRAIGIE&CO.
RICHMOND; VIRGINIA
Bell System Teletype: RH 83 & 84

Telephone 3-9137

banner

and

Providence

that

every

share to the

a

•saving*

in

taxes, you will
understand how near this "buyingretirement"

for

be. The
set-back has
real bargain

may

market

investors

a

opportunity to pick

able

The

these

up

soned Guaranteeds at

a

sea¬

most desir¬

price, both for excellent in¬
and

appreciation prospects.

only

difficulty

is

that

the

supply is much

smaller than the

demand

it

easy

and

so

locate

to

say

expansion.

73

tmammmmmmmmmummmmmmmmmmmmmmmmmim

really

are

the

Haven

—

like $10

Government

tend

this

like

realize

you

to

in

COMPANY

time New York, New Haven and
Hartford pays a $10 dividend on
Providence and Worcester it also

poration provides

participate

AND

LIMITED

Worcester, and Norwich and

that the Hoffman Electronics Cor¬

to

WISINER

Worcester.

stock.

portunity

I

New

Railroad

of

excellent op¬

situa¬

Guaranteeds

under

York,

me

an

TRADING DEPT. EMPIRE 3-7218

several

senior

stocks

New

come

Therefore, currently selling

of the tax

which

category

afforded

shares of Hoffman

common

Electronics

Central

number of others.

cause

added

and

Trading Markets (U. S. Fund*)

and

York Central, Pennsylvania
Railroad, and New Haven to their
portfolios.
Two
stocks
in
this

of

CANADIAN SECURE! i3t;

pay¬

Boston

major
Railroads to buy in their Guar¬
anteed
stocks at considerably
higher prices before many months.
Banks, Insurance Companies, Uni¬
versities,
have
anticipated
this

in

$4% million.

Bankers

Broadway, N. Y.I 60rt>aitdt.7.5639

Cen¬

one

pressure

may

temporary

over

7

above $130.

now

Central's

a

bilities

of

18

Tokyo—70 Branches
Investment

stocks;

6% Bonds around $154 level—and

$16 million, against Current Lia¬

the

silicon junction

introduce
was

has

its

Assets

an

com¬

In addition to mak¬

itself

leaders in the

the

in

ing components, this
established

them

gives

position

in

shares outstand¬

share.

per

pany's finances

opinion that they took

per

there

as

111

&

Here

today.

histories

this spring for New York

The current annual dividend

rate is $1

re¬

of

million.
same

1954,

as

722,094

now

ing.

that

Brokers

high—
2% % on

of my selections
at the $80 level—it was exchanged

after ;

$2.08

or

713,192

shares outstanding.
crease

However,

1954,

$1,485,513

was

share

in

profit

Established
Home Office

standpoint of investors.
1941

Albany-was

with

compared

Yamaichi
Securities Co., l td.

these

burg, Shreveport around $55

con¬

approximately

were

write

were

Bonds
case

solidated sales for the year ended ' ing $5 and this is
Dec.

or

all

tral's

sales

to

Call

assur¬

of

many

drawn

were

interest

several

cess

three years.

As

knowledge

potential.

Notonly

generous

that

Government
are

Naval
two

quite

compared to the 2%

approximately

on

the

when

flight.

TACAN equipment is expected to
be

is

leases

to

as

guaranteed

a

return

the po¬

on

ernment

Members

New York

of

distance

stocks, in
opinion,

ances.

vision—

is the income from such securities

pilot with

a

continuous information

proximately 60% of the company's

diode

M. s. WIEN & CO.
Established

tem, which provides
sition

income

these

Hazel Zimmerman

with

with

of Japanese

po¬

and

contain

Electronics

and

important

Philippine Oil Development
Lepanto Consol. Mines

a

appeal

unusual

have

investors

investors

aranteed

u

my

Hoffman

apparatus for United States Gov¬

of

to

worry-free.

rail

New

It is my

offices

con¬

important

control,

transmitters,

computors

1929

MARKETS

is

clusion, where
growth is an

re¬

of 1954.

year

FIRM

mind

include

and

an

may

one

Government

tire year of 1955 will exceed those

of

branch

SECURITIES

peace

foregone

Vision lens developed by the com¬

Tel. Hanover 2-4850

For Financial Institutions

is

ment

where

Mississippi

both sales and profits for the en¬

tion

our

JAPANESE

without saying that the
type of invest-

Easy-

featuring

and

to

con¬

Approx¬

receivers

ceivers.

St., N. Y.

years

company's

$1,199,655.

production

NY 1-1557

investments.

complete line of quality television

ment

37 Wall

25

some

equipment.

taxes,

electronic

(Wme^dCompcmu

750%;

of

increase

Hoffman

pany;
or

This

1,000%.

poration

of large

increase

an

LD 33

Exceptional facilities for the

for

types of specialized test and field

you

share—or $4,500.

per

Exchange

HAnover 2-0700

sistently advocated the top-flight
Guaranteed rail stocks as quality

New

Dan River Mills

ACCUMULATION

offering,

public

have 200 shares worth

now

Exchange

York 6, N. Y.

Direct wires

Guaranteeds, Alabama,
They have also begun shipment Vicksburg, was then selling around
of Hoffman Electronics Corpora¬
under an important contract for
$61 a share and paying $6 a share
tion stock at $6 per share in 1946
the versatile SRT-14, the standard on a Guaranteed basis.
Today this
(firm name was Hoffman Radio
Navy
transmitter
which
sends stock is quoted around the $160 a
Corp. then) — when they made voice, teletype and telegraph.
share level. Another was Vicks¬
their

Stock

Stock

New Orleans, La. -

Angeles, Calif.

development and produc¬
to sonar, radar,-

aircraft

the $1 billion mark.
If you

American

Railroad Stoc':s

Guaranteed

Kansas

been

company's

navigation,

by more

annually.

to

York

New

19 Rector St., New

Birmingham, Ala.
Mobile, Ala.

of

direction

than one ex¬
pert in this field that in 10 years
they will be producing around $20
estimated

way

Steiner, Rouse* Co

Investments

manufactur¬

a

opened

was

90%

search,

will
produce $8 to $10 billion worth of
products in 1955. And it has been

1947

ZIMMERMAN

HAZEL

on

New

(Page 2)

made

tion work related

In

American

Investments,

Members

distributors

and eastern markets.

George V. Honcycutt

to

fast-growing

billion

ffipONNELL & CO.

Bought—Sold—Quoted

Members

in the Western

has been

contracts

a s

only $340 mil¬
It is currently estimated that

Since 1917.

Zimmerman,

Los Angeles, Calif.

who, in turn, sell to retail dealers
27 states.
Their principal dis¬

The

lion.

Rights & Scrip

An¬

Los

Stocks—Ha¬

Railroad

River.

industry-

this

zel

company-operated

in the area west of the

re¬

amounted

Specialists in

five

Louisiana Securities

as

measured
an

by

com¬

are

unaffiliated

43

television

electronics,

of

and

imately

1939,
the production

cently

Wires to Principal Cities

Private

through

ern

grow¬

ing industry—
ELECTRON¬

BOSTON

Guaranteed

City primarily for the purpose of
producing television and radio re¬
ceivers for middlewestern, south¬

thought

first

receivers

television

ing plant

selection

—my

Exchange

Stock

American

120

1920

Member

the

re¬

states has resulted in the
largest back order position they
have had in three years.
Sales of

States—but in

making

n

this

&
Henderson,
geles, Calif. (Page 2)

pany

tribution

this forum.

Corporation

distributors—which

the

Corporation

George V. Honeycutt, of Har¬
bison

that has
reception

Alabama &

in

Like Best" for

New York Hanseatic

television

Participants and

Electronics

Hoffman
—

to

enthusiastic

ceived

Los

Hoffman

particular security.

a

intended

not

are

quality

IIONEYCUTT

Harbison & Henderson

listed securities.

and

for favoring

Thursday, November 24,1955

Their Selections

be, nor
offer to sell the securities discussed.)

as an

positioning

in

and handling large

unlisted

reasons

(The articles contained in this forum

and Dealers

Banks, Brokers

We

week, a different group of experts
field from all sections of the country

in the investment and advisory

.

Week's

This

Forum

A continuous forum in which, each

Trading Facilities
For

Security I Like Best

..

even

Oh yes,

not

always

small blocks

85

years

and 65 years on
a

on

ex¬

Norwich

Providence.

record.

7

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year

Performance

of

35 Induetrial Stocks
FOLDER ON

REQUEST

I almost forgot

that dividend records

back

is quite

is

N. Q. B.

That

National Quotation Bureau
Incorporated

46 Front Street

New York 4,

N.Y.

Number 5484

182

Volume

.

.

.

The Commercial and Financial Chronicle

INDEX

Achieving Goals of
International Trade
the

Company

Spots—Charles

A

Convention, Mr. Reed calls attention to problems to be solved
if the growth and expansion of
ceed

on

sound and

a

international trade is to

pro¬

—Hon.

the countries of the

past

hopes

nought, and

of

many

our

to

United

other

year.

true

•many

of
world

Philip

particularly
continen¬
OECC

Reed

D.

in

the

and

in

growing markets, high employ¬
ment, increasing private invest¬
ment, and

expansion of world

an

Most

important of all, the

.free world has achieved

degree

a

of military and economic strength
which would for the foreseeable
future

prevent a major war by
making- it too dangerous to fight.
There

is

Isaiah

a

the

which expresses

time

a

their

spears

we

become

Testament

"shall

men

beat

into plowshares,

and

into pruning hooks".

free

all

when

Old

look forward to

can

nations

time

a

will

have

economically strong

and

when the economic
jand
political
vacuums
of
the
world have been filled by giving
the aspirations of their
peoples
prosperous,

instead

substance

real

of

this

the

business

will

surely have

conference

if only

helped,

ultimate

we

and

shared.

and

come

to

the

how

of

a

is

It

what

and

program

to

peace

the

through

ex¬

and

squared

resemble

roped arenas in which a champion
awaits

every

chal¬

to make

First

General

MATERIALS, INC.

Williams

Cover

Horizons

Private

for

E.

3

Foreign Investments

Young

18

Mills, Jr

22

J.F.Reilly&Co.,Inc.

About Liquor, Wine, Beer, and Related Industries
Starting

the

on

cover

page

the

present

we

Members Salt Lake

opinions,

spe¬

companies and the industries

as

42

Broadway, New York 4

DIgby 4-4970

whole.

a

Direct

Keith Funston Warns

Credit

I

would

observation

an

the

defining
It

here.

may

also

"Say

Just what

As We
Bank

which

we
a

are

?

against
us

■

going

we

to: be

good many years

and

think of

a

It

Insurance

The

Stocks

r

*Circular

60

...

8

fFe

49

Mutual

57

Funds

be conducted and regulated

—

best interests of course!

we

sometimes forget is that

&

is

not

also

and

a

home market to

We

must

both

sides

of

Continued

5

Governments

39

Our

Reporter's

in

on

page

24

on

Utility

Security

The

some¬

PREFERRED STOCKS

Report

Now in

Spencer Trask & Co.
25

BROAD

Albany

•

Nashville




Exchange

TELETYPE N. Y. 1-5

•

•

Chicago

Direct Wires

Schenectady

•

to

Security

.

.

.

WHY and HOW

55

Corner.

and

Lisbon

50

Offerings

26

You—By Wallace Streete

Security I Like Best

•

Glens Falls

Valley

Uranium

16

2

f

4

Is Fast Becoming

60

-

A Top Uranium Company
t Column not available this week.

Twice

1

Weekly

COMMERCIAL

FINANCIAL
1

.

Drapers'

Gardens,

London,

E.

C.

Eng¬

•

New

•

Current

Copyright 1955 by William B. Dana
Company

CHRONICLE

B.

Park

DANA

COMPANY,

Place, New York
2-9570

to

7,

Reentered

Publishers
N.

second-class matter

as

D.

WILLIAM

Subscription

SEIBERT, President

vertising issue)
plete statistical
records,

and

Other

issue

—

city

news,

Offices:

3,

111.

quotation

135

etc.).
La

•

being

Strategic location.

of

Countries,

Salle

St.,

STate 2-0613);

S.
of

$55.00

per *year;

in

$62.00

Other
Bank

and

Note—On
rate

of

$58.00
per

per

U.

FREE

year.

of

exchange,

the

—

made

In

New

York

remittances
funds.

Report Available

Monthly,

fluctuations

GENERAL INVESTING
In

for for¬

eign subscriptions and advertisements must
be

share

i

(Foreign postage extra.)

account

price around

250 per

year.

Publications

Quotation Record

$37.00 per year.

Current

States,

Members

Canada,

the

South

(Telephone

bodies

ore

blocked out.

and

Union,

and ad¬
Monday (com¬

market

Major

Febru¬

Rates

United

Dominion

news

every

in

Territories

Pan-American

corporation news, bank clearings,

Worcester
Chicago

and

Possessions,

Other

Thursday, November 24, 1955

Every Thursday (general

•

ary 25,
1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

9576

SEIBERT, Editor & Publisher
DANA

production maxi¬
permitted by AEC.

Y.

Subscriptions
HERBERT

acquisitions.

mum

and

Reg. U. S. Patent Office

state
•

inc.

Exchange PI., N. Y.

39

The State of Trade and Industry___

ST., NEW YORK 4, N. Y.

Boston

40

45

Registration

Salesman's

REctor

TELEPHONE HAnover 2-4300

mackie,

Philadelphia * Chicago * Los Angeles

58

Securities

Washington and You__

25

Stock

mors

securities

15

Reporter

Prospective

therefore
coin

Bankers

Our

Securities

at

the

and

Railroad Securities

home market. Every export

else.

Banks

May

The Market

New York

over-the-counter

Teletype NY 1-1825 & 1-4844

8

Wilfred

such thing as a foreign

that

About

Public

in

own

1

Observations-*—A.

convictions about

foreign markets should

no

Notes

News

WILLIAM

Members

250

HA 2-0270

land, c/o Edwards & Smith.

specialized in

Request.

Singer, Bean

f

Indications of Current Business Activity

on

maintain trading markets in

than

26

...

Request.

on

**Prospectus

46

-

Dealer-Broker Investment Recommendations

The

have

Diners' Club, Inc. "*

Gulf CoastLeaseholds,Inc.*

Cover

Bookshelf

Man's

Published

For many years we

Atomics, Inc.

Ultrasonic Corp.

(Editorial)

8

foreign

tion with other exporters. And we

keep

29

Coming Events in the Investment Field

NSTA

capital in competi¬

our

have very clear

market

(Boxed)

From Washington Ahead of the News—Carlisle Bargeron

being just tfratan'
which; we
export our

or

once a

v

Corpus Christi Refining Co.

Struggle Naught Availeth"

Inflation

as

to

there is

v,

•

Too often

goods

in

>

27

Einzig: "Political" Wage Demands Cause of Britain's

come?

area

See

Business

here for the next three'days, and
with

the

office

City

PacificUraniumMinesCo.*

is this world, market

concerned for

Basic

Says

Regular Features

going to be talking about

are

Booms,

Commerce and Labor Department Expect Construction Outlays
To Attain New High in 1956:.
29

other nations, what is

or

Business

about the

guard

good for them to do.

Not

Lake

20

While

Marcus Nadler

the temptation to tell other

people,

Continue

like

that sin which Fowler reminds
—

to

discussion

of

areas

Restraint

branch

to

Against Clause in United Nations

Declaration of Human Rights...

of

rules

Teletype: NY 1-4643

wire

Salt

instruc¬

City Stock Exch.

Spokane Stock Exchange

especially written for the "Chronicle," of the chief executives
of some of the leading companies in the
liquor, wine, beer, and
related industries regarding the outlook for their
respective

foreign trade and in¬
vestment which may be helpful in

of

Walter

—Marshall

address by Mr. Reed at

Session of the 42nd
National Foreign Trade Convention, New
York City, Nov. 14, 1955.
the

a

request

on

Foreign Trade Convention

Finance and Foreign Trade—A. L.

of

nature

body
opening

New

enjoys

runs

moral

Notwithstanding,

market is

lenger.
*The

ATOMICS, INC.

28

Achieving Goals of International Trade—Philip D. Reed

far

English
usage, comments somewhere that
"men are as much possessed by
the didactic impulse as women by
the maternal instinct.".

ment that the areas of controversy

cause

"

broad view of the

a

in the

struction

What

each

—Hon.

cellent advice along with good in¬

their

of

25

Foreign Economic Policy: Promise and Performance

W. Fowler, who gave us much ex¬

pansion of world trade and invest¬

begin ;to

chairman

much

too

include

how those

promote

BASIC

22

STRATEGIC

tion with his remarks. The late H.

the free

goals of

,world are very clear, and they

when

F. Florence

danger. The luxury is being

market

when

17

Stanley Baughman. 20

__

Addresses at National

one,

These,

WHitehall 4-6551

14

Circular

game.

conference

STREET, NEW YORK

Expanding Markets for Trust Services—Richard P. Chapman. 30

subject at hand The danger is to

to

little, to point the way.

common

this

as

^
r-

WALL

to

orderly

mere

able to take

we

are

such

others.

many

being

any

cial

false

of

promises, then

hopes and hollow

The

is

trade

and

sound

a

special luxury, and

a

the age-old hope

when

their swords

in the Book

passage

in

in

A

countries

United Kingdom. This is reflected

trade.

Strathy

Babson

—Herbert J. Morris

policy from mere theory,* just as
the
really tough going always
separates the men from the boys

—

the

on

expan¬

details, are the
backbone of any sound and.con¬
structive
policy;, they- are
the
things
which separate practical

the

tal

international

conferences

from

of

free

Obsolete Securities Dept.
B9

Expansion

if the growth and

of

and

coun¬

tries

sion

in

record-

same

Christmas Trade—Roger W.

change controls be hammered out

an¬

And the

Foreign

convertibility, transporta¬
tariff policy, customs pro¬
cedures, import quotas and ex¬

States

breaking

a

11

the Petroleum Industry
L..12-

on

FNMA's Role in the Mortgage Market—J.

ment,

the

having

If

Spending!

Prices: Is Inflation Dead?—Heinz Luedicke

tion,

economic

.of

Deficit

or

Humphrey

M.

basis, it is highly essentialj that
the problems of foreign
invest¬

Ac¬

indices,

LEFT-OVER TURKEYS

Standard

Varying Types of Investments and Their Yields

Yet,

proceed

nearly

very

Trade

Gold

10

America's Role in World Prosperity—Fred
Current Problems in

The

fears

our

deal

cording

of

the

on

6

Telephone:

vacuum

to

came

great
indeed.

a

all

of

most

year

to

came

is

George

Report

Harding

11

A Progress Report on Canada—James G. K'.

Says the

prosperity.

is

M.'s

A.

living standards.

This Convention meets again in
time of high prosperity. During

a

N.

Probable Impacted Atomic Energy
—Robert E. Wilson

created by war is now
being filled in, and stresses the advantages of American
capitalism over other economic systems in achieving world

the

of the

Cortney

SELL US YOUR

5

individually adopt economic systems and monetary
policies which promote growth of production, employment and

world must

-

Other Economic Soft

Broderick

T.

Prosperity Without Inflation

orderly basis. Points out if international

trade and world investment is to prosper,

Critique

—Philip

4

.

What Lies Ahead in Wall Street—Charles B.

In the opening address at the 42nd National Foreign Trade

*

Cobleigh

The Threat of Inventory Recession and

Electric

Board, General

Page

AWO COMPANY

Of Bonds and Blends—Ira U.

By PHILIP D. REED*
of

llCHTtnSTfl

-

Articles and News

Chairman

3

(2187)

80 Wall St., N.

Y. 5

CORP.

BO 9-1600

4

The Commercial and Financial Chronicle

(2188)

self to

Of Bonds and Blends

upward price adjustments.

While it's true that the major com¬

panies
cause

Enterprise Economist

look at liquor stocks, in -warehouses

A random

exchanges, with

some

a

and

the

on

reference to dividend yields and possible
price advances.
with

fiercely competitive low
profit lines. There's no aging, nor

payer,

long-term tie-up of funds in

Crow"

are

ware¬

house receipts.

Distillery fortunes
made in whiskey, not gin.
Perhaps we have high spotted

were

tax bite

today in the order the special conditions prevailing
of $2.10 for each 5th of 90-proof
among
the
spirit
makers
long
blend you uncork.
This soaring enough, and should get down to
taxation,
m e a n i n g
constantly a few field notes about individual
sales of heady
higher prices per cocktail, jigger companies.
spirits has or jag, has, in the opinion of the
Distillers
Corp.-Seagrams Ltd.
gone
its own experts,
definitely reduced the is the largest in the business and
divergent way. consumption of whiskey, encour¬ although incorporated in Canada,
The
golden aged moonshining and bootlegging it does 90% of the business in the
revenues
(some say this illicit trade will United States with the
Seagrams,
racked up by run to $500 million this year) and
Calvert,
Carstairs,
Four
Roses,
most distilling led to a switchover to less expen¬
Hunter, Wilson, and Paul Jones
in particular, gin,
companies in sive boozes
brands, among others. It does a
1946 have, in and, latterly, vodka.
Despite all whacking business — above $750
most
in¬ this you will drink 1.15 gallons of
million a>year in
gross
(excise
stances,
re¬
whiskey this year if you're the taxes knock off about two-thirds
mained une- average drinker, of the classic or of this). It has shown
stability of
qualed; and per capita ilk.
earning power with annual net
the
problems
Another impact of the tax bite since
1949
ranging between $35
of
competi¬ is this. If you have whiskey in and $43 million.
Common divi¬

which has carried
many sections of American indus¬
try to new highs in production
and profitability, the distilling and
In

these

year

a

—

U.

Ira

of

Cobleigh

bootleg

tion,

of

eral

taxation,

rivalry,

and

Fed¬

of

non-

increasing whiskey consumption—
all these have

operated to prevent

many liquor shares from zooming
upward on the markets; or from

delivering
those

who

larger

dividends

have laid down

few

a

dollars beside distilled waters.

the

with

Christmas

to

season

So,
ap¬

bond

the

for

eight

by law,

years,

at

of that

end

period, you have
to take it out of bond and pay the
tax on it.
Well, spurred by the
great demand of 1946, 1947 was a

(1955) the 8-year period for
is up. The stuff must
come
out of bond, get tax paid,
and
in most cases
(no pun in¬

enough,

gallon in 1934;

at
was

$1.10 a proof
raised succes¬

sively to $2.00 in 1935, $3 in 1941,
$4 in 1942, $8 in 1943, $9 in 1944
and

as

Nov.

a

clincher

1, 1951 and

to this Federal
state

$1.50

taxes
a

to

ever

$10.50
since.

on

Add

burden, individual

gallon, and

now

some

wind

you

up

Quite recently, Distillers Corp.-

Seagrams

that vintage

leries

purchased

and

distil¬

three

than

rels of rye

50,000 bar¬
whiskey from National

Distillers

for

deliver
and

somewhere

75%

of

between

business

65%

volume

for

distilleries, is

a rather static fig¬
with the current growth found
in gins and vodkas seemingly due

ure,

to the fact that

they

the pocketbook but
has

diminish
been

are

easier

of

on

factor which

time goes

as

true

a

many

on

as

products

after the public has reconciled it¬

Corp.

was

sort

any

more

million.

$6

acquired.

This

If

SALEM-BROSI US,

1 NC.
'■

beverages,
for you—I. W.

one

will

require

Earnings

in

the

is prosper¬
ing, and James B. Beam's bourbon

We've just reviewed here, quite
briskly, the so-called "Big Four"

appear
moderately on
upgrade and the present divi¬
of $1 is being covered with
cents to

45

National,
chemicals.
tional
of

It

Petro

60%

owns

'

line,

^ntane

and

propane

gases; and a 20%

same

is

name

going splen¬
,

those seeking good balance

For

Na¬

of

the smaller

Among

didly.

Chemicals, producer

ethyl derivatives

—

side

a

trade.

Brown-Forman

the

of

spare.

has

too,

the

ones,

dend

around

bit of patience.

a

sheets

and

shares,

unsullied

dividend

by

-

bearing
recent

any

bullish excesses, some values may
be culled

in¬

from the foregoing.

<r-

^\1
Steel

The

Production

Electric Output

Carloadings

and

Trade

Retail

State of Trade

Commodity Price Index

Industry

Food

Price

Auto

Production

Index'„

•

Business Failures

J

held

close

remain

to

to

the

about

record

level

of

weeks

recent

10% higher than

the level of

a

continued

and
year

ago.

Operations in

some plants were curtailed
slightly
of steel, copper, aluminum and freight cars.

ages

by short¬

"»!*■*■

*

~ '

•*"**"

-

'

to

industry stepped

another

Industrial

record

production

level,
last

;

production seasonally in Octo¬
the Federal Reserve Board.

up

states

month

to

rose

146%

the

of

1947-49

unadjusted basis. This was a four-point increase
from the September level and 16
points above October last year.
average

on

The

an

Board

seasonal

adjustment
record

to

and

take

most

of

trading

these

this

rise, however, was due to
differences.
Its index after

day

factors

into

remained

account

September level of 142% of the 1947-49

The
month

board's

since

highs

new

figured

factors

records

adjusted

May.
since

set

the

at

average.

index has been setting records every
unadjusted index has been recording
August.
Both are now above the previous

The

during the 1953 boom

year.

t

The

September-to-October rise in the unadjusted index wqs
distributed among durable goods, non-durable goods and minerals
production. Activity in durable goods industries rose five points
from September to a new record of 162

October.

only

With

Output
October

seasonal

factors

on

an

into

taken

unadjusted basis in
the

account

rise

was

point to 161.

one

of

on

non-durable goods rose three points to 134 in

an

unadjusted basis.

rometer, this rise

was

after some decline

Initial

claims

by 6,900 to

On the seasonally adjusted

ba¬

point to 128, equalling the June high

one

during the
for state

summer.

unemployment compensation

186,400 during the week ended Nov.

dropped

12, the United

States Department of Labor reported.
The

department's Bureau of Employment Security stated the

decline

in

seasonal

initial

claims

industries.

A

due

was

short

work

partly
week,

fewer

to
due

the

to

layoffs

in

closing

of

reductions in first claims for jobless pay,

gin; Blatz Beer, and im¬
ported
scotches.
Schenley,
too,
has diversified a bit, with a phar¬
maceutical

Schenley

company,

plus

21 %

a

price

near

do

A year

Nov.

with

in

Schenley

paying $1 are
year's low,
times market

There
the

was

week

791,900.

a

considerably
all

ing law be changed, and (5) a $117
million lawsuit against the
gov¬

Some

27

states

reported

:

.

The comparable figure

spurt in

ended

position,

possibility of great
"8-year" bond¬

said.

agency

-

.

*

5, the number of job seekers drawing state unemployment

price, (3) marvelous current asset

(4)

the

a

ago

year

was

1,389,600.

the

book value 2V2

it,

earlier, first claims totaled 247,100. In the week ended

benefits totaled

factors

at

thing to

insured

Nov.

from

workers

the

claims

5,

but

level

were

of

for

unemployment benefits

claims
a

continued

year

earlier.

to

be

About

in

down

2%

of

drawing unemployment benefits. Ken¬

tucky had the highest unemployment rate of all the states, that
is 4.5%.

.

'

ernment, challenging the constitu¬

development projects

under

way.

law,

1951

1956 sales, $10,000,000 to $12,000,000.

amendment

the Federal rate
from

_tb'

on

Request

suit

would

Hiram

N.B.C. Bldg.

Cleveland 14, Ohio

like

does
U.

on

Walker

distiller

Its

S.

five

gallon.

benefit

90%

Club.

pears

distilled spirits

a

is
in

of

the

$6.60

years,

common

a

the

safe

too.)

second

Canada

it,

business

average

(This

others,

big leader is

With

on

its

at

in

shares around 69

and
are

a

growing economy.

by "The Iron Age" indicates that in the next four

survey

the industry will expand ingot capacity by

16,000,000 tons.

The cost will

come

to

over

approximately

$3,000,000,000, accord¬

ing to the national metalworking weekly.
Meanwhile
woe

chance

from

of

the
a

relief

steel

consumer

can

look

procurement standpoint
until

third

quarter,

if

forward

well

into

then,

to

1956

states

nothing
with

this

no

trade

weekly.
Part

of

the

ap¬

expansion costs will come from higher steel
prices, it declares, since the industry has not denied
reports that
prices will rise after the turn of the year. Some smaller

the

ducers, it points out, have already increased

earnings

dividend

ground,

years

but

Canadian

net

A

too,
the

shortage since Korea,

producers have launched another expansion program aimed

meeting increased requirements of

and,

share for the past

$4

steel

increased

Distillers-Seagrams,

around

Telephone: TOwer 1-6550

which

$9 to $10.50

largest

PARSONS & CO., INC.

Amid the near-chaos-of the worst steel

tionality of the excise taxes paid
under the so-called force-out

Estimated

Detailed Information

American
ber

Gibson

also of taxes paid pursuant to the




option

local public employment offices on Veterans
Day, also had some¬

Backlog of orders, $7,000,000.

Teletype: CV 652

benefit

To

common.

conversion

whiskey; and National's
stress on "straights" is in the main
trend
of
consumer
preference.

benefits should the

Producers of steel mill equipment.

-

this

Schenley, Three
Feathers, Golden Wedding, Coro¬
net Brandy; Cresta Blanca wine;

(2)

Carnegie, Penna.

and

shares of

from

selling

top

straight

imbibe

you

alcoholic

of

Schenley has
Harper, Old

(1)

research

2.6

"Old

tended) be sold.

The

Interesting

the

conservative, there's a 4%%
preferred at 98 V2 convertible into
more

tal.

common

! '

Its

years.

is

year's low around 19, and, for the

record

I

Laboratories, Inc.

I-

market.

The performance of over-all industrial production for the
nation-at-large in the period ended on Wednesday of last week

policy which has led to a
steady build-up of working capi¬

now

may

averaging

Chemical

is flirting with the

common

X

a

What with some brings Distillers in the straight
proaching, and the wassail bowl 700 million
gallons
in
bonded field in a sizable way.
o'er flowing with the liquid proof warehouses now (part of it repre¬
Distillers Corp.-Seagrams is not
cf brothernood and good fellow¬
senting bulged production spurred all whiskey — there's petroleum
ship, now appears as good a time by the Korean War), this exit from too. A $15 million investment is
as any to discuss the producers of
bondage should continue in vol¬ now bringing in 2,400 barrels of
these holiday spirits.
ume
in
the
years
immediately oil, daily, from 146,000 net acres
A brief background of the in¬ ahead.
Obviously this is a factor in Oklahoma, Louisiana and Kan¬
dustry may help. When John Bar¬ for price depression, particularly sas.
leycorn resumed his legal exist¬ in respect to companies with heavy
Altogether, Distillers-Seagrams
ence
in 1933, everybody tried to inventories in
is quite a company and probably
aging bonds.
get into the act; and from 26 mil¬
the most stable value in the field.
Total (domestic) whiskey sales
lion gallons of whiskey in storage
At around 40, the $1.70 dividend
should run about the same this
at the 1933 year-end, frantic pro¬
yields 4.2%; and the price is 9.8
year as last
(around
190
million
duction carried the guzzle goods
times 1954 net.
gallons) but an important longon the shelf to a high of 510 mil¬
The second largest distiller is
term consumer trend still persists
lion gallons in 1941, and this de¬
Schenley Industries, Inc. whose
—away
from
blends
and
into
spite the fact that "hard licker"
net
earnings retrogressed from
straight whiskies.
Straights and
drinking on a per capita basis was
$5.10 per share in 1951 to 87 cents
bonds now account for some 42%
increasing all the time. The war
in 1954. The picture began to im¬
of
total
sales
volume,
against
diverted
distilleries
to
military
prove in late 1954, however, and,
12J,£% nine years ago, with a cor¬
purposes, though the quantity of
for the fiscal year ending Aug 31,
responding decline in blends. This
drinking continued to its peak in
trend has favored National Dis¬ 1955, per share net came back to
1946 when a thirsty pqblic bought
$1.40,
mainly
by
better inter¬
tillers
and
Schenley but been
230 million gallons of whiskey.
somewhat adverse for Seagram's company integration, better and
Since that first postwar year,
broader distribution, with stress
which
has
stressed
such
welltwo
things, quite related, have
on
the
longer
profit
premium
known blends as Seagram's 7
happened to disquiet the distillers,
whiskies.
During 1955, Schenley
and make inroads on their profits. Crown, Calvert and Four Roses.
purchased 88% of the stock of
The first has been the mounting
Apart from this preference Park & Tilford
Distilling Corp.;
level of taxation. It started, inno¬ switch, then, whiskey sales, which and in
August, the Dubonnet Wine
cently

brand

DR

dividend

unbroken

20

third

tional

year,

a

of great distillery production

year

distribu¬

reliable

an

past

the

is

American

a

with

dends, since 1950, have been $1.70
conservative

the

been

the

for

Distillers

in

has

It

Intermountain

Co., maker of soda ash.

National

largest

in

terest

equities in

the field.

gins,

produce

vodkas (favored by some be¬
of
less
breath
betrayal),

and

By IRA U. COBLEIGII

do

and

can

of the most dependable

Thursday, November 24,1955

...

one

pro¬

base

Continued

prices of
on

rage

hot

47

Vdlurne

Number 5484

182

.

.

The Commercial and Financial Chronicle

.

in

The Threat oi

Observations.
t

'

•

Inventory Recession
Other Economic Soft Spots

And

•

•

By CHARLES T. BRODERICK*

THE INVESTOR AS TAXPAYER*

Members, New York Stock Exchange

'

its true

-i The basic

Though foreseeing

"inventory recession/'
threat in the immediate
future. Discusses as some other "soft spots":
(1) the neu¬
rotic stock market; (2) our alleged vulnerability in foreign
trade, and (3) the current tightness of credit. Holds long-

is to caution him to maintain

Of

it.'.'

is the rightful privilege of
shape his affairs in ways to

it

course,

•

i.

•'

_

self
*

•

minimum tax bill.

a

in

so

this

of

age

secure

This

high,

if

is

not

particularly
confiscatory,

taxation.

term interest rates

There

1
<

structive
or

is

plenty

of

action within

without

investor

for

conA

to

It

must

be

several

in

seen

the

role

but

of

elements

considerations.
wishful

May

Avoid

thinking,

dollar-and-cents
both in general
tion

policy and for

great temptation of

apply

and

test

cost

the hard-boiled

to

proposal,
The adjura¬

every

specific transaction.

a

against overdoing the tax motif applies principally in the cap¬

ital gains area.

There is often over-registration of losses through

non-reccgnition

the trading

of

glossing-over of the tax

gains.

on

the assumption that

in its

Also,

cost.

dodged that decision to cash in
on

the

there

is

frequent

a

Thus, the simple truth

be

may

capital gain should be premised

a

the stock in question is over-valued; both

general status, and in comparison with another security to be

switched

into, by the amount of the tax bill accrued

appreciation.

the capital

on

The long-term holder of Sears Roebuck from $40 to

iu

a

^

the

As

of

one

influencing investment
decisions (in regard to both continuing yearround
portfolio management and year-end
transactions).
Don't unwarrantly engage in
unsound investing policies for unrealistic tax
A. Wilfred

of

•

must

discipline himself
keep the tax factor in its proper perspective.

.

u

,

t,

has

it,
Bloody

a

reference

no

your own slaughtering operations, but only

to the extreme
d i f f i

h

their

ave

Secondly,

5J*®?

life,

business

and this
be true

prices
prices
intn
into

the

mastered

priced

(his presumed

by $20

another stock

Either

120.

not

or

he

has

In

his Sears for (proceeds after tax) for 100,

something equally over-valued to switch

he must be convinced that 100, not only 120, is

or

vis-a-vis

by 17%

other medium available to be switched into.

or

other words, he is selling

into,

tax payable)

over¬

an

addition

In

to

.commission and

loss-registerer

calculating correctly the trading

transfer tax,

must

involved

into

take

the

account

penalty

year-end selling of the depreciated stocks which

centrated
■

others'

from

pressure

expense,

in registering

similar

sales.

a

involved

in

con¬

pyramided

loss-registering liquidation entails extra pre-tax loss to the inves¬
tor

an

a

must

one

remember

possible switch to establish

accompanying acquisition of

a

after

at

future equivalent capital gains

the switch will be successful and

is maintained

the

paper

(which wipes out the tax).

liability applies clearly when

reacquired in

or

decision

a

capital loss, the likelihood of

a

This reacquisition of a potential tax

long-position

arriving

a

single security

capital loss is registered.

a

"Tax Free" Delusions
The so-called "tax free"

must desist from

that

true

dividends

free from
to

the

paid by

income

current

holder's

dividend is another

kidding one's self

cost

loss-incurring

some

where

area

from being kidded.

or

one

It is

companies

are

tax; but the dividend must be applied

basis, which correspondingly increases the

capital gains levy payable by the holder at subsequent sale time.
the

Thus
:

security is not "tax free," but free of current income

taxation.
i

In

vein

same

of taking

into

account

a

built-in

capital

gains tax obligation, remember that appreciation bonds, including
,

those tax exempt, carry a tax bill to be paid at later redemption

time,

The

investment

shareholder

company

income, and that being

again representing

well
-

as

folio's
are

at

the

income,

a

must

distinguish

be-

passed

25%

companies
as

securities.

to be treated

if he

shareholder buying

as

his

into

rate.

tax

were

Thus,
as

on

capital

a

gain;

the latter

return of capital but which is immediately

maximum

investment

the

Special tax laws governing

the

holder,

distributions
own

on

representing

gains

capital

long-term capital gains.
investment company

an

capital

as

himself investing directly in the port-

And

gains
a

new

with long-term

paper

profits, realistically calculating "liquidating value" to him,

must

deduct

which
ever

tax

he

the

already

will

be

accrued

liable

for

tax
if

on

and

capital

illness

Eisenhower's

when

those

gains

are

economic

so-called

the

and

all

by

threat

stability

by the author in the course.

is

everything

When

manu-

our

distributors

and

on

really

get the bit in their teeth and
wildly overestimate the demand
their products, the carriage

for

they are pulling is likely to wind
up
against the nearest tree, on
the two and only two occasions
when our national economy declined during the postwar period,
1948-49 and 1953-54, abnormally

"Your Investment problems Today,"




is
I

intended, and any
might • make * about
trends on- the New
would

Fvchanfm

<ttnrk

Vnrk-

probably be proved wrong before

y
I

y
had

p
a chance

4
to express

Whaj.

smw

outlive

of

nomic doctors who
All

this

is

by

henlthv

the

eco-

think it dn^

think it does.
of

way

Possibility

PrinciPles
cnerifip

saying

by so

it is indeed possible

nrobable

but "-1S not probable.

...

.

were

WG

we

to
iu

TGSt
resi

COntGnt
tumcui

of

some

.

n

to

g.

f

,

al

faTnting

a

.

eauallv

is

v

risk

+Hp

But

admis_

th-

the

conclusion 'that

,

^hl j

illness.

f

the
..

soell

losing

nf

sus-

mv

Wall

. aiienating peo-

.

the cherished Wall Street be-

trends' AccordinS to this belief,

the Dow-Jones Industrial Aver-

is

aSe

with
wiiu

sort of imPersonal deity

a

to be spoken of with bated breath.
It
sup^lants providence in the
of

affairs

business

men,

foresees

future with uncanny accuracy
possesses

revere

may

mystical powers
but cannot hope

comprehend.

In the light of the assertion that

marklt"

«the

sees

all and knows

all> R is remarkable it makes so
many errors- In fact' a cocl
of

1939

to
...

,

WgTG

.

.

praisal
Spots"

"Soft

on

demonstrated

was

sudden

Eisenhower's

recession, is no threat at all in the
5 dP^n^^rhedulL bv

Other

within
the
general

because

or

event

market

the

rather forcibly by President

one

Some

is

stock

collanse.

to

that

may swoon
sometime
nerind
either

and

^fJfVnot

vulnerable

pp0ri0rnv

virtue, to wit, the inventory

1956

here

us

market take a bath in the months
ahead, it would make the entire

that the traditional way in which
our economy strays from the path

°-

conccrn

that, should the

lief that the stock market is a
reliable harbinger of business

a

if

does

cjajm

stock

prices
1 anf

u,,*

reflect

^ut

record

its

seems

from

1929

to indicate that

never

did

nnrnnrQtp

corporate

anything
earnings

this appraisal of American busi- statements of the day before.
ness prospects, we would bring From ^39 to date, when the inhigh inventory-sales ratios were the
wrath
of
the
economic dUstrial averages were asserting
at the root of the trouble. In fact fraternity down on our heads. Ac- ^eir independence of the current
the
1948-49
decline
was
the cording to many astute observers trend of net corporate profits and
classic example of a "pure" in- of the economic scene, a number were practicing the art of foreventory
setback,
since general of soft spots other than the in^
j
?7
business activity dropped $13 bil- ventory situation have developed
Continued on 'page 61
nnno

lion

all

and

of it represented in¬

ventory reduction

on

the part of

businessmen.

the circumstances, it is
surprising that the fashion of
the
day is- to forecast a third
Under

not

postwar inventory setback, to be¬
gin about six months from now.
This prophecy has not been de¬
veloped out of thin air, and we
can't dismiss it too cavalierly. It
built

the

upon

inventories

We

of

MR. DUNCAN MILLER
as

Manager of

our

in

this

process

stocks

will

months

more,

ing

announce

accumu¬

at

nually

that

pleased to

the appointment

roughly $4 billion an¬
the second quarter of
this year and $3 billion annually
in the third. On the expectation
lating

are

fact

admitted
were

body

contends

of
that

of

building

continue

for

Resident in New York

six

a large and grow¬
economists strongly

American

Syndicate Department,

up

Telephone: BOwling Green 9-4900

business

will topple over the precipice into
another
second

inventory

recession

in

Laird & Company

quarter, 1956.

The

Wave

of

MEMBERS

Inventory
New York Slock

Accumulation

However, before we decide to
give up the ghost and to accept
the
slings and /Arrows of out¬

fortune,(let

us

try

a

few

series summarizing lectures

the New School for Social Research.

think

can

& ^rk^Lde^L
£as
fnd w;[1\ 111d0of° lf
^n't reaufre Seadv d£t

to

inventory recession,

scale.

big

rageous
a

I

of is the possibility it may shake

darkness.

10%,

constant

most

American

appreciation;

liquidated into his hands.

♦This is the sixth instalment in

at

snares

exterior

remaining

the

odds

that

j tween that part of dividend payments that represents ordinary

taxable

into

the

is

Special Fund Regulations

inventory-

Uf^^^^dfng
extending anfheiriStforward
their
forward

-

the

"U

Wpntnrv

the
Lorelei wmcn
whfch lures
tne .uoreiei
lures

is
is

researchers, and should be

banished

a

in

profit is to be accepted before death

■

nomic

facturers

too,

tax, assuming that

a

of the

We Americans do

Indian Giving

about

economy.

pitfalls which lie in the path of
American business
are
products
of the vivid imaginations of eco-

equivalent.

Then,

and

epoodmfnecTof
aspect of Presfdent
President

At least 90%

Of

under

are

Such

as

loss, the

onri

relapse,

businessmens confidence in the
price structure a little, and make
professional life, I have managed them a little less avid to accumuto apply this fundamental truth late stocks. Lastly, and it would
to the operations of the Ameri- be
difficult to overstress this
can

it

short-term

final

or

The only good

the

of

things
I
Charles T. Broderick
worry
about
never
happen. My only consolatiori lies in the fact that, in my

advan¬

tageous liquidating price.

consumption

InTlTnr In fbf iqJJ

that

.

$120 is justified in selling only if he is convinced that Sears is

_

Tbe

haven't

"90%

il

as

still

truth

r

goods

penetrating
my
head.
In
my
personal

I

which
forecast

shelves^of refrigerate^ *tjve' but a simple statement
and other durable

radios

in

well,

•

„

as

am

even
it.
barely eight or nine months ago, G d
,
knows
h f stock prices
and was preceded by 15 long wiu d/in the immediate future.
months
of
liquidation,
during -pjjgj iast sentence was not an

experienced

you

o

*

other facts on for size. In the
first place, the current wave of
inventory
accumulation
began

11 y

c u

ideas

ox

..

has

Book

I

prices. Furthermore, this talk is
being written two weeks, in: ad¬
vance of the luncheon meeting for

more

to

may

does the stock marr
going to try not to be
a fool by not trying to predict.the
near-term
behavior
of
security
tread,"

ket.

we are

Maketh

This

Entrance.

are

Says

Good

"Knowledge

of

to

likely to be stable than to rise in
already skating on thin ice in matter
instalment credit and farm problem is serious, both eco¬
nomically and politically.
future.

near

this framework—with

attorney.

an

the

But

opportunity

an

Mr. Broderick says that it poses no

citizen to
for him¬

every

likelihood of

some

clining farm income. Let us try
put each of these problems in
perspective.
First, the neurotic stock market.
There is no phase of the American
economy that provides so many
occasions for quoting the epigram,
"fools rush in where angels fear

to

By A. WILFRED MAY

piece of good advice for the tax-conscious investor
a proper sense of proportion between
tax* incidence and investment policy.

v

' stock

market, a -vul¬
nerable
foreign trade
position,
extreme stringency of credit, ex¬
cessive consumer debt and
de-;

Economist, Lehman Brothers
r

notably

business structure,

our

skittish

a

'

f

5

(2189)

*An
the

address

National

Nov.

11,

1955.

by

Mr. Broderick before
Institute, Chicago, 111.,

Exchange

Midwest Stock Exchange

American Stock Exchange
Chicago Board of Trade

Commodity Exchange, Inc.
NEMOURS BUILDING

61 BROADWAY

WILMINGTON 99, DEL.

NEW YORK 6, N. Y.

6

(2190)
;

.

slow

Investment banker, in

tion

institutions in the United States,

need for improved techniques

there is

Street"

different

means

It cov-

things: to different people
a

hanks

lot of territory and includes
insurance
cnmmnips
in
insurance
companies,
in-

banks,

companies,
pensionfunds,

inH-v1SH?i?
di vi duals
iicoL/
these

for

one reason
c.nwcirv.r.
another,

We

will

n

have

u

o

to

if

cover

confine

we
our

discussion
Charles

B.

Harding

the

h

g

ground

t

o

securities

business. That
is what
VJIUL
VOU
i
arp
mosT interyou ano
and I
are most
ted in'
ested
in.
Pertanc
heen

"I

wonder

In Wall
tall

if I

had

would

be

exact
I

our

will

the

what

v

Of

What

Street

adODted

will

made
bv

to

that

the

and

DOlicte

the

other

the
business
in your
future is
is in
vour hands
hands.

The

First,

lets

Let's take
here and

look

a

where

history

and

orient

gives

help

may

at

us

got

Looking

making
else

someone

has

already made. Sometimes, too, we
ate
able to pick
up good 1UCW
ideas
_Y".
V

which

be revived for present-

can

Unvt

11PO

day

innfr-n/tA

For

use.

vigorously

are

and, of course, tactfully presented.
Even

if

all

ihom

nf

nnt

nrn

an

of them are no

JLven^if a

acw

want to get into a position of re-

LiMMtAiIrAr.

instance, turnpikes

had

on

our

;nf0T.,70nLrt

in

.

panics''

+

~

oon

nr»

}eme™Dei a. »me wnen we didn l
wnobe
connecuons gave mem ac- have them, m business, in politics,
cess to inside information. The or j„ our personal lives. During
whose connections save them acYork

New

u

«moneV

bv

caused

suited to the day, or the ability
to effect a new combination of
ideas, a combination in which an
older thought can suddenly become a compelling one. He must,

Sii? 'sSSta? "investorl'" and probIems, and many o£ tbem„ bi|
speculators were usually those rememberTt?me when we didn't

T!

^

public ownership.
Investment banking developed
rapidly after World War I as
many
of the
big
commercial
banks, as well as the larger pri-

_1

of speculation. K was a pe.
,,

to all of you who are interested
in studying the history of our
business. With regard to the importance of new ideas for economic
development,
he
says:
"What actually makes great business leaders and statesmen is the
instinct for choosing the idea

by
the
of ~stock
was
direct VTVftjL
our idea machines? I can
\J
J
Uiv sale wa.
...
VAH\iVV
Tn
VVm,
slower^ in its^ evolution. In ^the think of a number. You can no
early 1900's, it was not fashion- doubt think of others Don't let
able for companies to give out the fact that we are faced with

ln the intervening years is in the
lm
.1.

.

iT"

■

ship of securities has come about
only in the last 50 years. Of
course, the era of industrial, railroad,
and
utility
mergers
was
necessary to
create the big national companies like U. S. Steel,
General Motors, and A. T. & T.,
which are suitable media for wide

capital
tapnai

economy

Stock

piunecicu

an

Exchange,

mc

ef/°.r in,

tuca

w

^

the

last

lo

reilsl.

.

J

While■ none °f tis knows what
.....
is
the future will
look like, there is
one thing ot which we can be

Investment Banking in America

different. Change
You can view

sure. It will be
„c

i e.

s.

thi

in

country about

\1^"}jfthc'centuryIt

the end

of

had its roots

^

jn England

this with alarm and fight it, or
you can accept it and profit by it.

and
loans

than he is able to digest

more

began "

Investment UnUnd
banking, too,

,

-

direction that the They

muchTnformatlon^manwtimel
iiiuciJ iniui maxion, niaHy iirriGs

' «o

the crops.

The Future Will be Different

i

the

between

-

'

'/•-,•

1

there

war

lot of

a

were

lcllllJt£

^actual shortage of money in the disclosure of pertinent informa- SOme awful story of mismanagefnri
ql go
dftrt
centers as it flowed out fon;;* ,1S. FA ^.
i.
ment or mistakes in high quarters,
o
t. So
to it. financial
to ^be counfry banks to finance

fitter!
d

are

vnn
y

have

Thursday, November 24,1955

.

vate firms, built up large sales of course, work within the instiforces.
"Bond
schools"
were tutional setup of his day."
started to train salesmen in the
What, then, are the problems
art of selling securities. Raising f0 the solution of which we must

'have noisy
the "nave
nots", ana
and

would

ww

prevent

n;rft

-

that there will be

a

solu-

problem and try
cor- to find it. Throw your heart over

TheJe follows
a demand for
measures
to

rective

the continent.
to governments
banks or private

to
psrtics la?rn,ed,
Don t feico

problems with that attitude,

your

Panics and
depressions bring
Panics
ana depressions
bring fiii- Assume
Assume
"?ncial, disaster to many people. tion to

on

"Oh,

came to be known as

my.
^void,G°dders-"
th0m

a

the
tllc

every

fence

and

will make the
—

you

j

ecurfrenCt'
? i i? crash, the jump all right. Lack of courage
were
taken by
wors* we have had because of the js one 0f the greatest inhibitors
Our business has
has to do with the
inrtivMiial*
fnr their
their own accounts.'
accounts
numoer 01 PGe n
indiv{duals for
"T
ll cifCLfcu,
affected:
^as
of success in business.
t hp
capital
and
the
mdiv
duals toi their own accounts. followed by the passage nf
of the
1
formation
of
capital
and
the Vf""",~f~~4U
Usually they were sold on a com- Qoniir{fipe
SprifritiPs and
liquidity of investments. The sys- Fy l ? ^ere s+old °" a com" Securities Art"'Vh/qpnu°rltioc ^
tern in which we operate is
the aeveiupcu wn«
Exchange Act' the Public ITtHRv'
r
deVe'°Ped W-Uh
the
^
»«« Holding ®
uompanies
gnidaci,
Ac"
iHS
an"
the
»wav
eNumber
dofl Business
SeCU"ties
anat™
inu bL?outcome of a long process of evomv
To
first,

own

I

4

IniiroH

tho

r<acc:qcfp

"

—-

„

private firms negotiating the
purchase of an entire loan for resale to traders or to investors.
or

mals could not easily be m0ve.
around and so money, representing the value, of these things, was
money was.

.

than others. One of these

money

conceived the idea
his surplus funds
interest was invented. This

jokers
,

rentjng
and

s0

out

,

however, always

£

.

disliked

d

,

needed

who

le

having to
hile

.

popular

a

to get

pay

they

money

it.

laws

passed

.

t it and called lenders

a|
p™es
names

...

like

r„,

.,

Thii

usurers.

ugly
,

be-

war

like usurers. Thi& war belenders and the bortween the lenders and the bor-

1 Problem

ComPeti^ion••

-

-*

lution, or trial and error It all
began before the dawn of history
with
the invention of money.
Accumulated capital in the form

perspective

avoid

us

mistakes which

we

are.

conflicts
and

^tral "tank Wtat^ef?^

ourselves.

how

we

1913.

be accepted if they

invented.. But because

and

of

industry,
destroyed the second Bank of the
United
States, founded in 1816

easily transported, it was easy to
steal. So gradually the idea ol a
bank was developed.
Human nature being what it is,
some
people always have more

people

vcun"

Act

Reserve

between agriculture and

in securities

ahead

the

the

"haves"

infhience

on

before its creation by

years

Federal

But

can

in

cen-

hun-

banking, typified by the
Bank
of England, developed
in
Europe long before it did here,

lies

depend

vou

of

anine

was

however

-1

US

ahead

time,
a

a

Central

borlnVlife o£ tools' shelter' clothin« alld anl:

knew

we

destinv

decHons

at

think I would

heheve

all

_

1

one

if

ahead

hawnnervstnl

Imagine how

hannen
w»

lieV

what

street"I

break it

time^

snhiert shnnld have

mv

Andrew-Jackson's

how many times your ideas will

camvons
tdijj uiio

or

in

dred

underwriting.
"Wall

banks

might have developed
tral banking system about

Says the Number 1 Problem is competition, and a second one
is the adjustment in relations between corporate ownership
and management. Another problem facing the securities busi¬
ness
is creation of a mass market for securities, and this
entails better education and equipment for personnel. Holds,
also,

system,

we

problefns which lie ahead in Wall Street.

and then lists the

bank

national

exchangable at par.
interesting to note that, had
it not been for the political situa-

affecting the securities business, reviews first the development
of banking and investment

by

It is

discussion of the trends and problems

a

national

a

issued

were

Members of the New York Stock Exchange

L.

of

Notes

Partner, Smith, Barney & Co.

L.

This

finally solved at the

end of the Civil War by the crea-

tion

By CHARLES B. HARDING*

communication.
was

;

,

; :

problem

.

.

-

.

.

of

What Lies Ahead in Wall Street?

ers

The Commercial and Financial Chronicle
* v; V

V

-

this time, too, it became

,Ab0Ut

fashionable

to

were

the

and

railroads

early

our

as

a

capital. Many of

of raising

means

lotteries

use

canals.

financed in this way. One oi

investment banking
firms o£ the early 19th Century,
largest

—

investment

started as a printer
lottery tickets, but found their
sale m0re lucrative. They develsystem 0f branch firms in

d

cities,

various

rected

n92

a

group

'anized

°*fd"
Jf",1"

thereby. You

may

iar with

some

done

our

of the other things
financial community

the

in
institution

market

an

wause it has become so

granted
familiar

its function
t0
provide
.
nrovide an efficient liquid
liauid
k £ f
securities Without the
As

_

.

lvvv,vu

know,

vou

0f thinking, the
number one problem in our business
is competition. This is true
jn
business
except where
way

my

there Js

a

monopoly. As business-

we

bod

with
,e

each
other

in

brokers

with everyother, and with

compete

m

businesses.

As

in-

compete for the lnvestor's dollar with life insurance

Let's look at some of them. One

companies, banks, savings banks,
real estate salesmen, phony stock

lessen

to

risks

the

to

both

vestor and to ourselves
0f the greatest causes of

to

be

failure

failure

of

loss^used
the

Like

firms.

of

ance

the

take for

to

in

not be so famil-

tion of the Federal Deposit Insur-

This is

,end

cor-

lessened

risks

first

securities

trv

given

abuses

New

fn;'ther 'and formed
^5. stock Exchange,
or

the

the

and

was

margins. You are

with

of brokers got

by others in later years.

"j

over

all familiar

The

banks, this wiped out
the savings of millions. In the
case of banks, this risk was piaetically eliminated bv the forma-

pattern followed

a

Act.

Federal Reserve Board

jurisdiction

s & M Allen,

o£

Company

Corporation. The New York

Stock Exchange met the problem

by the imposition on its members
and member firms of minimum
capital requirements and periodic
surprise audits. 100% solvency of
firm«: has been the result.
result
member firms
Another major cause of loss to

we

peddlerSi and lots of others.
investment

nh

which

bankers

insurance

ufe

companies,

do about 70%

now

As

compete

we

pf cor-

pora,e fjnancjng through-direct
private placement. Those of us in
the government and municipal
field compete with the commercial
banks
A £ew of the larger ones
wou]d £ike £o increase the profits
o£ thcir bond

departments by get-

ting the Congress to make it legal
£hem

£pr
*—

underwrite

t0

revenue

--

well

general obligabonds 33 we" as Sencral
obligaAnother major cause of loss to 'LllJi
mllnirinals. We hope this
d

a3

.
Without
se
the itiruces^Z

as

nrf°f1dS Were a J°™m0n io0nVrt1mheaS?e,eonnmgs0Tagreeno?rthe ™y °£ funXpIovJed by such the investor
bad advLe from tion municipals We hope this
^
iqU £"Tg road building '<»«■ time. It looms laige on the
yet ££ would have been im. his broker A lot o£ progress has ™on£ b? allowed- In,.?ddl.t101? £°
nf fashion
Cen'uryThey went history.
® »P of our °wn P0'1'1"1 fpossibleamount*
for us to
have raised
the been
made in curing this by the its effect on our profits, it might
out of
early in this
of em.itv
canital
Stock Exchange's reau.irine exam- b"ng a return of some of the
,££ecant'f' as you know, the becamele!?d!n,g money at interest neefjec] f0[-0ul. industrial develop- inations for registered representa- abuses of the Twenties, which reidea has been
legal, various

mettad
th»

m,f

f

,

cen-

revwed with spec-

tacular

success.

—~

ir

...

Lets discuss

of

some

.

the prob-

lems

facing us and try to think
of possible solutions. I
hope I can
Interest you enough to get you to
exercise

tion

There
this

is

gift

which

no

of

greater

than

imagination,

is

bonds,

Notes,

have

we

we

made

nave

indue

m

business will be determined
rieckinm;

produced

the

came

bougbt and sold

as

.

Srshifof
f]

•

business. Without

a

;nvpr1tinn
bavP

could

businesses

gr'own

have.

they

as

incoro orations

is

o

0wneiship in caiP°ratia"s 1S' 0
evidenced by

course

Commercial

stock.

banking

m.

wa°PAs
our

Ex-

business

de-

gradually until the Civil
later wars, the people
busir,ess

were

called

tremendous task of

funds

^|ded

to«ght

on

raising

th? war.

8
Many of the techniques in us
in investment banking today are
~

.

developments of ideas formulated
,

t->v

Pnnkp

in

lne

uvea
lives

mm
and

individual
individual

vy
by
the
efforts
of sulted
}nJ'ha
of commercial
bankselimination
from an dui mufirms to
banks
from all but mufirms
to improve
improve the
tne nicipal1 and
Government bus
and government
business.
-

-

.

of their personnel but
much remains to be done in this
caliber

fieJki.
One of the most effective ideas
.

£o[ the reduction ofrisktoourfives was the use of the layoff
during underwriting carries.

AU these

do not

jess

mean

we

econ0my

ness>

Far

Alexander

or

said
npw

are in

riiratpc

nf

Bank of North America, founded

writin«

nn«ihiv

i,
T ;/
/
°f England, then privately owned.

fnr

iUp

syn-

cUorinrf

Habmtfe*

and

fnr

the

..p

ot

your

"What
nffpM

I do

can

ifjo

people
of
may
ask

V

You

that

ran

4

modeled on the Bank

1781

.

•

,

j

,

mv
-%n

pan

4

it.
in

Henry

his

recent

Ynrk

Chamber

iTt nan>4

so'many^easons^vfhy^omeThhig
uy ,reasonAs wny something diKero^in strength,1Thei?
dispnunts
U

can't

be

there

is

lo.vara
toward

done.
an

As

creeps

calcification
caicmcation

and

ing energy. You will be

on

fpndpnnv

derreas
ctecreas-

Association
y,

o».

is,

„(

Now

1955.




y„rk, Now

fn'govSnmfn^bonds^avrS
c.8
bonus gave tnem
-

!

.

,

varying discounts, lhis a financial stake in the success of
to
growth of dealers their cause
in bank notes. They also dealt in
..
Millions ot npnnlp
people, hnfh
both then
s01d

.

Save rlse
.1.

,

surprised

-A talk by Mr. Harding at New York
University Graduate School of Business
Administration
to
members
of
the
ini

varvinp

.

age

inrrpasimr

notes
This

/

__

brokers

exchange
broker

smart

had

to

know

A
the

M,,™(

see

the possibility that

ieading
reentering the corunderwriting business. We
don,£ £hink £ha£ commerclal banks

to

the

banks'

be!ong in the investment banking
f.

than

Jd

we

bel0ng

banking.
.

insurance
wanting to sell mutual

ip

^^nnHPr?heGuise

funds under the guisei ofvadable
ot variao e
annuities. In their competition witn
^

pnrnnrate

ni3rpmprng

„„

financing,

,,,,,

they

,

lt: can 1 happen again because placements uu nut icquuc

°£ a11 the sa£eguards that have £ration with the SEC. Similarly,
in the sale of variable annuities
thov havp tbd aHvantagp^ of fa^
mey nave tne advantages 01 ta;
an
exemption from registration;
(h) an exemntion from the Intoj an exemption trom tne in
,

nr

aiso

busi-

As

,

new

can

.

?
1 J4? "abilities and f0i the been built into our economy.'"
distribution of securities from an clwlli„tivp bnhhipc
inri
fhpir
parbpr
Hpvplnnmpnt
in
Furnnp
bPeculative bubbles and their
possibly
jt joaned monev on mercantile S?
.
development
in
Europe.
burstmgs
are phenomena of mass
effect the conduct and
policies of
;
money on mercantile He originated the sale of bonds ncVrhnWv Thp hp^t c:afPa,,orrl i<;
firm9" Yon
r!n
nionfv
credit,
received
deposits,
and fn millions of small individual in
Psychology, ihe best sateguaid is
?a can do plenty. .
,'hank nofps whirh hppamp a
millions ot small individual in- f0 study those of the past so as
Most
good
ideas,
particularly lssa^a bank notes which became a vestors rather than to banks and 4n bp abip to rPrn«ni7P the svrrmabout doing
thinac
adnnt
medium of exchange. This pat- canitalists Thpir natrintism was I
recognize tne symping new methods
come
fmm £a™ was £o"owed £" othf banks appealed 'to,
as well as their ;£0myS0^"^Vl^reven? Them' "yoS
Lprntiln
generation.

vnur

We

thig may be the first step

a

riskless

a

from

selline bonds for

11Ii5L adapted the idea of forming

nicina

^Proved safeguards
[n commyercial
that
risk-

sPe^ch to the New^YorkCJnamner

modern bank in this country, the

neonle

Stock

no

investment

vewed

\Z

is

Mqscow>»

we

as

^eiitUiy ulr\ ^nglaPa"

"There

saying,
.

countries
Have
have
th
exchanges. Vnll
You kn
know the

Backward

tock

4n«

mnrip

bv

repay

.

„„

,

°Ur enVir°n~

the

to

"securities."
Qne o£ £he great £inancial inven£jons was the corporation or limited liability company which red
th
le
or
partnership

be

all

in

and
to

mortgages,

contracts

other

from the

man

responsible for

progress

Ideas

were devised
devised to
to secure
secure the
the loans.
loans.
were

_pvpr

It

piogit^

our

bv

force

creative

m!ntmg
cf

imaaina-

your own ideas.

distinguishes

animals.
the
uie

creative

your

developing

in

instruments
became legal various instruments

vestment Company Act; and (c)
lower taxes

Life insurance corn-

tower taxes, i^iie insurance com

%

TomeStaPxy

mf?y
able tp, minimize ' their Some of this competition seems
effect,be
on you and your customers. a little unfair as does the fact
T hnnp this bripf nntlinp nf tbn tu i
i- V 7 '
•
V ?•
brief outline of the that unlisted companies are free
evolution
business
manylisted
of the regulations
made clearoftheour
point
I want has
to 0f
setting
and also bethe
*

ones

md ijJ.W(orId Wf ? and

roade make. that creative ideas have £act that banks may loan money
tovernmenfTonLlnVThusenteev tinn" Frit^RedliTh" h^wHtten t0 ?"r euStomero°n certain se-

&overnijient bonds, ^hus they tion. Tritz Redlich has written curities on which we may not.
e currency oi u dieds were educated in the purchase of. an excellent book called "The But let's not worrv about com°£ banka a" over the country. It 0ther kinds of securities. It is hard Moulding of American Banking,
y
value of thp currpncv of hundrpd«!

f JJ

was

E

not

an

easy

job

in

the days

to realize that wide

public

owner-

Men, and Ideas." I recommend it

Continued on page 44

Volume

182

Number 5484

.

.

,

The Commercial and Financial Chronicle

(2191)

New Issue

$50,000,000

City of New York
2.70% Serial Bonds
Dated November 15,1955. Due November 15,1956-70, inclusive.
Principal and semi-annual interest (May 15 and November
at the Office of the

Bonds in denomination of

Interest

15) payable in New York City

City Comptroller. Coupon Bonds in denomination of $1,000, convertible into fully registered

$1,000

or

_

multiples thereof, but not interchangeable.

i;

Exempt from Federal and New York State Income Taxes under Existing Statutes and Decisions

Legal Investment for Savings Banks and Life Insurance Companies in the State of New York and for
Executors, Administrators, Guardians and others holding Trust Funds for Investment
under the Laws of the State of New York

:;.;i

AMOUNTS, MATURITIES AND YIELDS OR PRICES
Prices
.Amounts

Due

$4,550,000

1956

1.75%

4,550,000

1957

2.00

4,550,000

1958

4,550,000

4,550,000

to

Prices

Yield

Yields

Amounts

Due

$2,950,000

1961

2.40%

2,950,000

1962

2.45

2.10

2,950,000

1963

2.50

2,500,000

1959

2.20

2,950,000

1964

2.55

1960

2.30

2,950,000-

1965

2.60

(Accrued interest

The above Bonds

are

offered, subject to prior sale before

if issued and received by us,

or

after

to

to

Yield

Amounts

Due

$2,500,000

1966

2,500,000

1967

2.65

1968

2.65

2,500,000

1969

100

(price)

2,500,000

1970

100

(price)

-

or

.

Prices

2.60%

be added)

appearance

of this advertisement, for delivery when,

and

as

and subject to the approval of legality by Messrs. Wood, King & Dawson, Attorneys, New York

City. Interim Bonds of the denomination of $1,000 will be delivered pending the preparation of definitive Coupon Bonds.

The First National City Bank of New York

The First Boston Corporation
Continental Illinois National Bank
and Trust Company

Bankers Trust Company

Smith, Barney & Co.

Guaranty Trust Company of New York

Halsey, Stuart & Co. Inc.

Kidder, Peabody & Co.

Phelps, Fenn & Co.

C. J. Devine & Co.

White, Weld & Co.

Salomon Bros. & Hutzler

The First National Bank of Portland

of Chicago

Oregon

Mercantile Trust Company

Shields & Company

Stone & Webster Securities Corporation

Ira Haupt & Co.

W. H. Morton & Co.

St. Louis

Incorporated

Kean, Taylor & Co.

Estabrook & Co.

Geo. B. Gibbons & Company

Hayden, Stone & Co.

Incorporated

First of

Michigan Corporation

Bacon, Stevenson & Co.

Roosevelt & Cross

Clark, Dodge & Co.

Incorporated

L. F. Rothschild & Co.

Dominick & Dominick

Coffin & Burr
Incorporated

Lee

F. S. Smithers & Co.

Higginson Corporation

Robert Winthrop & Co.

W. E. Hutton & Co.

R. L. Day & Co.

Aubrey G. Lanston & Co.
Incorporated

i,

R. H. Moulton & Company

Shearson, Hammill & Co.

C. F. Childs and Company

G. H. Walker & Co.

Dick & Merle-Smith

Incorporated

R. S. Dickson & Company

Manufacturers and Traders Trust Company

Incorporated

of Buffalo

Andrews & Wells,
G. C. Haas & Co.

Inc.

Rand & Co.

Hannahs, Ballin & Lee

Shelby Cullom Davis & Co.

Bacon, Whipple & Co.

Fairman, Harris & Company, Inc.

Eldridge E. Quinlan Co. Inc.

Mackey, Dunn & Co.
Incorporated

November

23, 1955.




First Southwest Company

«

Boland, Saffin & Co.
Stokes & Co.

J

8

The Commercial and Financial Chronicle

(2192)

Wall

49

Street, New York 5, N. Y.
National Fuel Gas—Analysis—Thomson & McKinnon, 11 Wall

Dealer-Broker Investment

Recommendations & Literature

Hill Richards &
Spring Street, Los Angeles 14, Calif.

send interested parties

to

Texas

Wall Street, New

1

ardson

area—Utah Power

Light Co., Dept. M, Salt Lake City 10, Utah.
Atomic Energy Review—New booklet—Harris, Upham & Co.,
Fusion

issue "Nomura's

same

of

Bank

Rates,

Investors

Beacon"

are

Ltd.,

Southern

Security

Profits

and

.

Post

Me., Nov. 21,1955.
Co, Inc, N. B. C. Build¬

~

"

&

Co,

120 Broadway,

Harris

Upham Appoints
Clayton W. Johnson

■

Co.—Memorandum—Zuckerman,

Smith

&
•;?

Corp.—Memorandum—Georgeson & Co,

Packaging

data

are

Tokyo

on

Rayon

Buletin"

Texas

and

—

Oil

Analysis

The

—

U.

Losses-

Harris, Uph

Co,

Co.—Memorandum—Alexander

Producing

Watt

Analysis

—

—

National

Quotation

over

Inc.,

Bureau,

period —
Street, New

Front

46

York 4, N. Y.
Overseas

Shipments—Booklet—Chesapeake

Ohio
World Commerce Department, Newport News, Va.

What Really Happened in the
—In October issue of "The

&

ing to
by

Bissell

George

Meeds, 120
Also available is an analysis

H

U.

and

Harris

&

U .
Harris, senior
partner of the

Company.

n

e

r

y

nationwide in¬

NSTA Notes

W.

Johnson

vestment

with 35 offices coast

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

members of

bro¬

firm

kerage

to coast and

York Stock

the New

Exchange.

Railway,

Stock Market Monday, Sept. 26

Exchange'—monthly magazine—

COMING

per year—The Exchange Magazine, Dept. E-4, 11 Wall
Street, New York 5, N. Y.
*

•«

—

joint

a

announcement

$1.00

Allegheny Ludlum Steel

accord¬

City,

Clayton

13-year

a

York

New

&

J. R. Williston & Co, 115

Company—Analysis—Laird,

of Pittson

& Co,
Broadway,

a m

120

Broadway, New York 6, N. Y.
Walworth

Com¬

modity De¬
partment
o f

issue

current

Securities

Nihonbashi,

S. Industries, Inc.

Bureau Averages, both as to

performance

New

of "Weekly Stock
Ltd, 6,
1-chome,
Chuo-ku, Tokyo, Japan.

in

Nikko

Broadway, New York 5, N. Y.

market

been

the

York

Averages and the 35 over-the-counter industrial stocks

yield

has

of

Co, 42 Broadway, New York 4, N. Y.

up-to-date com¬
parison between the listed industrial stocks used in the Dowthe National Quotation

Johnson

Manager

GJidden Company.

Kabuto-cho,

Comparison.

in

Clayton'1 W.

appointed

Street, New York 5, N. Y.

Continent Oil—Data—Bruns, Nordeman & Co,
52 Wail Street, New York 5, N. Y. Also in the same bulletin

Over-the-Counter Index—Folder showing an

used

10

Sunray. Mid

;

on how to figure—Francis I. du Pont & Co., 1
Wall
Street, New York 5, N. Y.
Also available is a bulletin on

Jones

5, N. Y: "

Pacific

Wall

52

Booklet

Yield

Co,

Co, 61 Broadway, New York 6, N. Y.
Standard

Calif.
on

&

views—Lerner

Democrats: al¬

Social

on

ways.—RICHARD SPITZ,
Fortunes Rock. Biddeford,

'

Municipal Market—Bulletin—Heller, Bruce & Co., Mills Tower,
Tax

Co.—New

Co.—Memorandum—Walston

New York

Future—Analysis of economic prospects for com¬
ing decade by Leon H. Keyserling—Henry Montor Asso¬
ciates, Inc., 32 East 57th Street, New York 22, N. Y.
Massachusetts Bonds-r-Bulletin — Park, Ryan, Inc., 70 Pine
Street, New York 5, N. Y.

Income

report—American

ing, Cleveland 14, Ohio.
Simmons

and Tokyo Electric Power Co., Ltd.

Federal

Co, 29 Broadway,

Company—Audit

Pile

Salem Brosius, Inc.—Data—Parsons &

and

San Francisco 4,

Faroll &

Office Square, Boston 9, Mass.

Look Into the

1955

daily vindicated by the
people for true
Thanksgiving days to live.
Go easy on the Thursday
turkey, hut continue hard

Man.,

Management, 25 East 38th Street, New York 16,

Cement

Riverside

discus¬

analyses of Mitsui Chemical Industry Co.,
Sumitomo Chemical Co., Ltd., Tokyo..Gas Co.,. Ltd.,

Outlook,

he

American

n. y.

analysis of Business Results and

and

&

6, N. Y.

Institute of

Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese-U. S. Taxation Conventions — Analysis — Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y. Also
the

Hutton

Limited—Analysis—James Rich¬

Company,

Concrete

Raymond

report containing com¬

on

rities

sions

&

Inc.—Circular—Joseph

New York

fusion, thorium, and uranium oversupply—
atomic map also available—both contain portfolio as of Sept.
30, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W, Washington 7, D. C.
Bond Market—Analysis—New York Hanseatic Corporation, 120
Broadway, New York 5, N. Y.
Investment; Opportunities in Japan—Circular—Yamaichi Secu¬

in

F.

&

Pullman,

120 Broadway,

mentary

Company—Analysis—E.

Sons, 173 Portage Avenue, East Winnipeg,
Canada and Royal Bank Building, Toronto, Canada.

&

Atomic

York 5, N. Y.

Railroad

Brothers

Price

New York 5, N. Y.
Confusion—Quarterly

Thanksgiving is the time
for veneration of the Faith,
Philosophy and Wisdom of
the early settlers that must

Company, 61 Broadway, New York 6, N. Y.

the following literature:

Area Resources—Industrial resources of the

Co, 621

—

Corporation—Report—McLaughlin, Cryan & Co,

Pennsylvania

will be pleased

that the firms mentioned

understood

is

Penn

THANKSGIVING

A

MESSAGE

Street, New York 5, N. Y.
Pacific Clay Products — Analysis
South

24,1955

Thursday, November

Merger—Analysis—Vilas & Hickey,

Milwaukee-Northwestern

It

...

EVENTS

*

Bulletin

—

Bache & Co., 36 Wall

In

Investment

Field

Street, New York 5, N. Y.
Allied Stores
17

Wall

Corporation—Brochure—Kidder, Peabody & Co.,

Street,

memoranda

on

New
Texas

York

5,

Y.

N.

Industries, Inc.

Also
and

available

Vendo

Nov.

are

American

Duchess Uranium & Oil
Co.—Bulletin—Cayias, Lar¬
Glaser, Emery, Inc., 10 Exchange Place, Salt Lake
City 1, Utah.
ir_
Basic Atomics, Inc.—Circular—J. F.
Reilly & Co., Inc., 42
Broadway, New York 4, N. Y.
Bergstrom Paper Company—Reoort—Loewi & Co., 225 East
Mason Street, Milwaukee 2, Wis.
Buckeye Steel Castings Company—Analysis—May & Gannon,
Inc., 140 Federal Street, Boston 10, Mass.

Emporium Capwell—In the Financial Chronicle of Nov. 10 it
was indicated that
Morgan & Co. of Los Angeles had a cir¬
available

on

Witter & Co. have

Federation

Bank

this

company.

This

memorandum

a

&

on

was

in

error.

Dean

Emporium Capwell.

Trust Co.
Bulletin
Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
Machinery and Chemical Corporation—Analysis—Sutro
& Co., 407
Montgomery Street, San Francisco 4, Calif. "
—

—

Food

General
York

Gas—Analysis—Ira Haupt & Co., Ill Broadway, New
6, N. Y.

General
Cohu

Gas
&

.

•

.

•

annual

Co, 1

Wall Street, New York 5, N.

Y^

&

Company, Inc.—Analysis—Strauss, Ginberg
Inc., 115 Broadway, New York 6, N. Y.
Gross Telecasting
Inc.—Memorandum—Paine, Webber, Jack¬
son &
Curtis, 25 Broad Street, New York 4, N. Y..
Gulf Coast
Leaseholds, Inc—Circular—Singer, Bean & Mackie
Inc., 40 Exchange Place, New York
6, N. Y. Also available
&

is

Co,

a

circular

on

Pacific Uranium Mines Co.

LiwTi
La,,e? VTranium~ReP°rt—1General
Wall
Street, New York 5, N. Y.

R. H. Macy &
way,

Investing Corp, 80
'

Co.—Memorandum—Talmage

New York 6, N. Y.




"

& Co, 111 Broad¬

Convention

at

Holly¬

wood Beach Hotel.

Dec: 2,

(New York City)

1955

.Security Traders Association of
New York Annual Meeting at
Wallace

H.

Runyan,

Hemphill,

Investment Traders Association;

Noyes

&

Co.,

per

&

Dance Committee

for

I.

T.

President

of

the Bankers Club.

William R. Raditsky, New York

Hanseatic Corporation, Philadelphia office, Chairman

A.;

John

Jan. 27,

of the Sup¬

(Baltimore, Md.)

1956

Baltimore

Hudson, Thayer, Baker

Security Traders As¬

sociation 21st annual Mid-Win¬

Co., Secretary of the National Security Traders Association.

Dinner

ter

The Investment Traders Association of

Philadelphia held their
Third Annual Supper Dance for their members and wives at theGermantown Cricket Club on Saturday night, Nov. 12. The eve¬
ning was an outstanding success.
Many of the members with
talent (in addition to trading stocks and bonds) entertained with
songs, dances, etc.\
«

Southern

the

at

Hotel.
Jan.

(Chicago, 111.)

30, 1956

Bond

Club

Traders

annual

dinner

of

Chicago
Drake

the

at

Hotel.

...

John

..

Corporation and Subsidiaries—Progress report—

G- M- Giannin»

(HouywotMl,

1955

Investment Bankers Association

son,

cular

27-Dec. 2,

Florida)

Co.

Hudson, of Thayer, Baker & Co, showed colored moving

Jan. 30, 1956

pictures

taken on his recent trip to the NSTA Convention at
Mackinac Island and probably planted a few ideas of going to next

year's convention.

-

SECURITY TRADERS

ASSOCIATION

OF

NEW YORK

(Chicago, III.)

National Security Traders Asso¬
ciation N a t i o n a 1 Committee

Meeting at the Drake Hotel.
March 2, 1956

(Philadelphia, Pa.)
Association

Investment Traders
The

Annual

Meeting

of

Security

the

Traders

Association

of

of New

York,- Inc. will be held Dec. 2, 1955 at the Bankers Club,
120 Broadway, New York, N. rY, at 5 p.m.
There are matters
of importance coming up before the membership at this meeting.
The By-Laws Committee has made certain recommendations
which members are requested to consider carefully.
Copy of

.

Philadelphia

dinner

annual

at the Bellevue-Stratford

with

a

luncheon

and

to be held at 12 noon.

Hotel,

reception

'

'

<

*

these changes is enclosed.

As
ensue

soon

with

as

the

„

.

meeting" has concluded,

a

Cocktail Hour will

Established

1856

■

entertainment.

H. Hentz & Co.
Members
New

York

American
New

York

Commodity
Chicago
New

Exchange
Exchange

Cotton

Exchange

Exchange,
Board

Orleans
and

Stock
Stock

Cotton

other

Inc.

Trade

of

Exchange

exchanges

N. Y. Cotton Exchange

Bldg.

NEW YORK 4, N. Y.
Chicago

•

Detroit

Miami Beach

Hollywood, Fla.

•

•

Pittsburgh
Coral Gables

Eeverly Hills, Cal.

* •

Geneva, Switzerland

Amsterdam, Holland
l

I

Volume

182'

Number 5484

The Commercial and, Financial Chronicle

.

(2193)
U

j

9

V

New Issue

$159,791,000

Commonwealth of Massachusetts
I
2.30% and 2xk% Bonds
Dated November 1, 1955

Due November 1, as shown

Principal and semi-annual interest (May 1 and November 1) payable at the State Treasury in Boston, Massachusetts, at
Company in New York, N. Y. or at The First National Bank of Chicago, in Chicago, 111. Coupon bonds

4

Bankers Trust

in the denomination of

$1,000, exchangeable for fully registered bonds in

multiple of $1,000 but

any

not

interchangeable.
>

Interest

Exempt from Federal and Massachusetts Income Taxes under present laws

Legal Investment, in

opinion, for Savings Banks and Trust Funds in New York, Massachusetts and

our

certain other States and

for Savings Banks in Connecticut

These bonds, to be issued for various purposes, in i
for the payment of which its full faith and credit will be
pledged, and for such purpose
will have power to levy unlimited taxes on all the taxable

the Commonwealth

property therein.

AMOUNTS, RATES, MATURITIES AND PRICES
(Accrued interest

bt added).

«o

$40,000,000 2.30% Bonds

$116,291,000 2.30% Bonds

$30,000,000

;■

:

Veterans' Services Fund Loan, Act of 1953

.

.$83,000,000

-.

$15,000,000

Highway Improvement Loan, Act of 1954

$3,000,000 due each year 1956 to 1965 inclusive

$4,150,000 due each

Highway Flood Relief Loan, Act of 1955

i.

1956 to 1975 Inclusive

year

$750,000 due each year 1956 to 1975 inclusive

$10,000,000
Hurricane Relief Loan,
$1,000,000 due each

year

$10,000,000

$5,000,000

Capital Outlay Loan Act of 1952-1955

August Flood Relief Loan, Act of 1955

$500,000 due each

$250,000 due each

Act,of 1954

1956 to 1965 inclusive

$550,000

$120,000
State Office Building Loan, Act of 1955

/,

$19,000 due each year 1956 to 1983 inclusive, and
$18,000 due 1984
'«

Metropolitan District Water Loan, Act of 1950
$55,000 due each

$750,000
year

)\

V-/V

•

Due
Amount

Due

To Yield

Amount

$9,827,000

1.50$

$9,836,000

1961

1.95$

$5,835,000

9,836,000

1957

1.60

9,836,000

1962

2.00

9,836,000

1958

1.70

9,836,000

1963

2.05

9,836,000

1959

1.80

9,836,000

1964

2.10

9,836,000

1960

1.90

9,835,000

1965

2.10

*-

•

1957 to 1964 inclusive, and

year

1965 to 1970 inclusive

$2,621,000

*

$88,000 due each

1956 to 2005 inclusive

To Yield

Due

-

year

$8,000 due each

Metropolitan Water District—Water Use Development Loan

1956

Amount

$9,000 due each

1956 to 2005 inclusive

year

Metropolitan District Water Loan, Act of 1952
$15,000 due each

1956 to 1975 Inclusive

year

Metropolitan District Water Main Loan, Act of 1954

$3,500,000 2'A% Bonds
$2,750,000

1956 to 1975 inclusive

year

■

year

$87,000 due each

>'

1956

year

to 1966

1967

to

inclusive, and

1985 inclusive

Due

,

Each Year

Due

To Yield

Amount

Each Year

To Yield

1966

2.15$

$5,826,000

1972-73

2.30%*

5,834,000

1967

2.15

5,826,000

1974-75

5,834,000

1968-69

2.20

176,000

1976

5,834,000

1970

2.25

176,000

1977-80

5,826,000

1971

2.25

176,000

1981-83

*Wbtn yitld tad coupon art ibt

taint,

Each Year

To Yield

$175,000

1984

2.45$

2.35

157,000

1985

2.45

2.35

70,000

1986-90

2.50*

2.40

70,000

1991-95

2.55

2.45

70,000 1996-2005 2.60

Amount

Ibt prict it par.

These bond, will be initially issued by the Commonwealth of Massachusetts at not lest than their
par value, and a taxable gain may accrue on bonds purchased at a discount.
Investors are required under existing regulstions to amortise any premium paid thereon.

t

,

•

When,

Bankers Trust Company

as

and if iaaued and received by

The Chase Manhattan Bank

Halsey, Stuart & Co. Inc.

us

and subject to approval of legality by the Attorney General of the Commonwealth of Massachusetts,

The First National City Bank of New York

Chemical Com Exchange Bank

Blyth & Co., Inc.

The First National Bank of Chicago

Harriman Ripley & Co.

Lehman Brothers

Smith, Barney & Co.

The First Boston Corporation

Salomon Bros. & Hutzler

Phelps, Fenn & Co.

Goldman, Sachs & Co.

Incorporated

Continentalillinois National Bank & Trust Company
of

Harris Trust & Savings Bank The NorthernTrust Company Glore, Forgan & Co. C. J. Devine & Co. Kidder, Peabody & Co. Drexel&Co.

R.W.Pressprich&Co.

Chicago

-

Merrill Lynch, Pierce, Fenner & Beane

The Philadelphia National Bank

Union Securities Corporation

White,Weld&Co.

The First National Bank

Mercantile Trust Company
St- Louie

of Boston

Seattle-First National Bank

Ladenburg, Thalmann & Co.

L. F. Rothschild & Co.

Blair & Co.

Bear, Stearns & Co.

Incorporated

Stone & Webster Securities

Corporation

A. C. Allyn and Company

Coffin & Burr

Incorporated

Incorporated

Barr Brothers & Co.

Hornblower & Weeks

The Boatmen's National Bank

Lee Higginson Corporation

Carl M. Loeb, Rhoades & Co.

Estabrook & Co.

Bache & Co.

First of Michigan Corporation

Geo. B. Gibbons & Company

Wood, Struthers & Co.

Braun, Bosworth & Co.
Incorporated

Laidlaw & Co.

Portland, Ore.

F. S. Moseley & Co.
•

American Trust Company

Paine, Webber, Jackson & Curtis

Incorporated

Hemphill, Noyes & Co.

Ira Haupt & Co.

Dick & Merle-Smith

A. G. Becker & Co.

of St. Louis

of

Shields & Company
•

Equitable Securities Corporation

The First National Bank

•

B. J. Yan Ingen & Co. Inc.
Adams, McEntee & Co., Inc.

Dominick & Dominick

Francis I. duPont & Co.

Aubrey G. Lanston & Co., Inc.

laurenceM. Marks & Co.

Incorporated

W. H. Morton & Co.

4

I

Scboellkopf, Hutton & Pomeroy, Inc.

Tucker, Anthony & Co.

G. H.Walker & Co.

Dean Witter & Co.

Baxter, Williams & Co.

Branch Banking & Trust Co.

Incorporated

!*
<

Alex. Brown & Sons

Brown Brothers Harriman & Co.

Hayden, Stone & Co.

Hirsch & Co.

Central Republic Company

Kean, Taylor & Co.

City National Bank & Trust Co.

The Marine Trust Company

F. S.
S. Smithers
Smithers &
& Co.
Co.
F.

Reynolds & Co.

King, Quirk & Co.

Bartow Leeds & Co.

R. S. Dickson & Company

Dwinnell, Harkness & Hill

Eldredge & Co.

Fidelity Union Trust Company

Incorporated

Incorporated

Incorporated

Newark

Laird, Bissell & Meeds

R. H. Moulton & Company

National State Bank

Tripp & Co., Inc.

Weeden & Co.
incorporated

November 17, 1955.




i

American Securities Corporation

1

W. E. Hutton & Co.

Wm. E. Pollock & Co., Inc.

A. M. Kidder & Co.

Shearson, Hammill & Co.

Newark

Incorporated

Townsend, Dabney & Tyson

Stroud & Company

Hallgarten & Co.

Incorporated

of Western New York

Bacon, Stevenson & Co.

R. L. Day & Co.

Commerce Trust Company

Chace, Whiteside, West & Winslow

George P. Fogg & Co.

Incorporated

Statements herein, while not guaranteed, are based upon information

Rockland-Atlas National Bank

Lyons & Shafto, Inc.

of Boston

which

we

believe to be reliable.

u

t

10

The Commercial and Financial Chronicle

I

(2194)

powerful,

A

Critique of the N.A.M/s Report
0d the Gold Standard
President, Coty, Inc.

gold.

tion of

adds

Manufacturers

Criticizes report

arbitrary

Dec.

value

posed

in

is

to

full

through

order

standard

gold

to

return

a

It's

pity

great

a

that

the

inter¬

should have endorsed

ers

statement

the

on

unless

recent

a

prepared

by
Money and

its

Credit

the

cause

a

In

As¬

sociation

1

a

McManus

existing

con¬

fusion

on

derstood

ject.
yet,

that

without

powerful endorsement to the

system

monetary

a

con¬

which is the most streamlined and

world has

inflation engine the

ever

dangerous

It is the

seen.

more

inflation machine

an

as

its

working is understood by very
few, and not at all by the great
majority of
The

greatest intellectual

free market

sin of

gold
and the freedom of its export and

import

is

essential

tioning of
ard

a

on

the

to

func¬

kind of gold stand¬

any

system.

The report presents some excel¬
lent criticism of the Federal Re¬

System

serve

general.

It

and

politics in
out that
the

of

points

tinkering with the gold reserve
requirements emasculates the esr
sential

of truth. Unfortu¬

a

monetary system which will

lead to trouble

be,

gests,

as

that

or

disaster. It may

bank

finance, and both were pro¬
ductive of striking changes in the
economic

States

during

of

a

management, there
only a few nations remain¬
ing on the gold standard, and the
inexperienced or incapable hands
in this country
a

essayed to manage
purely domestic gold standard,

apparently with but scant regard
the

for

the

international

originating
interests

of

voters

should

few

paign

for

the

adoption

cam¬

of

such

amendments.

The NAM

"There
tion

a

if

have rendered

great service to the
its

report had

community

brought out the

following points:
(1)

That

the

present

monetary

chaos in the world will be
brought
under control only if there is a
return

to

the

gold

standard

ternationally, or at least
great trading nations.
(2) The return to

in

in¬
the

gold stand¬
internationally would require

ard

bold

action

United

(3)

and

initiative

by the

The

report

should

have

made clear that the restoration of

gold standard domestically and
internationally will not be possi¬

a

ble
of

until

and

operation

serve

unless

of

System

changed

so

as

the

the

method

Federal

Re¬

make

a

the

of

monetary

Scandinavia,
But in a
United States,

the

with

besides

Federal

a

enjoying an ab¬
normal elasticity for the expan¬
sion
of its money supply, it is
System

monetary authority
"to
make
the supply of money
dance to its own sweet pipings."

the

to

open

(2) On Page 5 one can read:

to

hand,

one

the

principal
the gold
heyday, and

attributed

a

to

restoration, is its efficacy
preventing inflation. But on

the other
of

now

tidal

hand, it

of

waves

compelled
standard.

inflation

abandonment
These

the

succession

was a

world

of

this

inflations

great

product

that

of

wars.

bate

without resort to credit

war

and

currency inflation,
events are now past

for

these

history. The

fact is that this

was

not done."

of world finance passed to the
States after World War I,

ony

United
we

have been

so

that

juggling, albeit un¬
wittingly, with the gold standard
actually

been
ever

on

an

since

the

world

arbitrary

World

has

unit

relationship
it

to

appropriate

an

with the price
the

at

stood

level

the

end of

in¬

flation."
True enough, it is

ter,"

but

"another mat¬

Why

essential one!

an

the committee not tackle this

did

subject?

just

I.

Under

the
method of operation of the
gold standard until 1914 great in¬

flations
World
would

like

War

of

due

our

to

create

is

to

not

I

have

suspension
But

those

the

the

Federal
the

only

World

the

fact

by

War

about

of

end

the

with

war,

price level still at a peak. This
is the time, if ever, to
restore
monetary order, and the question
raised by the committee regarding
valuation

the

and

of

basis

unit

monetary

the

gold
pertinent

both

is

urgent.

gold

standard.

hyper-elasticity
Reserve

System,

that

country

large,

our

but

rich

and

of

shares)

for

share

cf

each

least

at

states

on

Page 5:

the

three and

General

one-ha!f shares of

Fire, and will expire on
Jan. 23, 1956'. Connecticut General
directors also
approved, subject
the

February

meeting,

annual

$15,000,000 to provide for
dividend

stock

a

the

in

of

to

about

do

gold

as

share

the

by

leading

(2)

and

one

it.

doesn't

The

hampering

with

ence
as

long

the

as

the

stored

tionally.

to

seem

be

aware

world will suffer

and

flow

shall

we

con^

interfer¬

of

its

trade

not have

re¬

gold standard interna¬
The
world needs
the

restoration

the

of

free

conver¬

tibility of currencies as badly as
it needs fixed exchange rates. The
committee

for

month
Cott.

a

Haven

Angeles.

the

for

subordinated debentures, due Dec.

of

will

cipal

14

of record

250,000-, presently
out¬
shares of Mission Dry
Mission's Los Angeles plant
able

be

manufacturing
for

Cott

west

of

the

licensed

David

18,

also give Cott 220
in

the

Stockholders

facturing

The

if

Company

of

the .transfer

ers

of

exchange

for

convertible

three
each

Officials

indicated

have

in

and

in-

<:

of

area.

by

time

same

free

currencies,

convertibility

of

fixed

exchange rates
unhampered
international

and

multilateral

trade

will

as

long

broken

have

new

a

100,000

12

but

services

fields.

Company

The

indicate that they expect

clared

$1.00
year)
be

cash

extra

an

share
a 20%

per

the

as

and
paid

to

dividend

*

declared

is

extra
Spring

the

Corp.

of

Bristol.

Dec.

record

Dec.

1

Stockholders

$0.40 quarterly dividend.

supply. Only
standard

link of the various
monetary systems compatible with
necessary

the independence and sovereignty

of

of

its

that

new

RCA's

research,

service facil¬

and

have

related

the bene¬

In

years

on

Dec.

1965-1979,

addition, RCA may,

through

the

sinking

to $4,500,000 principal

of

debentures

in

each

debentures

comprise

the

sole

long term debt of RCA with

the

exception

of

notes

$150,000,000
due

The

first

$3.50
out

plant in Newington,

par

shares

Conn., which is currently under
construction, will be expanded an

par

of

are

900,824 shares of

preferred

value,
common

stock, with¬

and

13,923,327

stock

without

value.

that

mentions

report

the total of the U. S. gold reserve
amounts

to

Jan.

1954.

31,

there

were

Required £.s
Foreign

$22,044,000,000
Against

obligations

gold reserves—

short-term

The

report

opinion

the

withdrawal

dollar

$

bals.

of

the

of

total

follows:

as

$11,799,000,000
11,947,000,000

minimizes
danger

as

this

of

in

my

the

is

constantly

Continued

on

page

41

&

CO.

Exchange

\

r

New Haven

SECURITIES

■

form

(Holland for the last few

changing its
dollar
balances
into
gold.)
It
states that the foreign owners of
years

Members New York Stock

'CONNECTICUT
1

of gold.

CHAS. W. SCRANTON

Primary Markets in

massive

foreign short-

balances in

j

.

..

of

1970-1977

cf nations.

(4)

of

1960-1979, inclusive.

years

held by insurance companies. Also

announced

recently

in

sinking fund under which

promissory

Fafnir Bearing Co. of New
has

cor¬

used

electronic and

outstanding
The

Britain

be

option, also provide for the

The

their

interna¬
provide

an
can

a

its

the

$0.60* extra
the regular

will get

10 along with

management

gold

cash

retirement

Associated

each

tional

at

has
divi¬

year-end

a

dend

maintain

money

such

debentures

amount

arbitrary

and

will

inclusive.

*

which

RCA.

by

on

funds

1, in each of the

of

company

by

carried

fund of up

-Another

in

created

were

part

debentures will be retired

December.

on

of

in

or

$4,500,000 principal amount of the

(same as
last
stock dividend
stockholders in

great trading nations of. the world
.autonomous

fit of

de¬

also

did not

commer¬

years ago. The
important of these products

to

has

been

and

velopment

change to take place in the
total employment in the Hartford
Veeder-Root

in products

were

requirements
and the further expansion and de¬

square

no

plant.

than 80% of

more

bentures, together with other

within the next
Some
manufacturing

location,

firms

most

months.

officials

group

Proceeds from the sale of the de¬

branch

be transferred

under¬

banking

not

manufacturing

new

to

had

or

ities in the

the

being

and Lazard Freres & Co.

velopment

of

for

ground

is

During 1954,

in, operation

operations will

on

per

substantial
expenditures for research and de¬

of space, is expected to cost
approximately $1,500,000 and will
be

$50

nation-wide

a

investment

whole

s's

of

time

at

cially developed 10

be

to

Incorporated

construction

on

convertible

are

maturity

offering

exist

be

to

seem'

cannot have at the

we

Hartford

(EST)

and services which either

Penn-Texas

Hartford
$

at

subscribe

stock at any

RCA's total sales

four

shares

10

continue

Veeder-Root

has

assets

Penn-Texas

of

the

Nov.

on

headed jointly by Lehman Broth¬

that the Colt's op¬

will

centered

Colt's

Penn-Texas

preferred

for

common

all

to

to

p.m.

debentures

written

Hartford

of

plan of merger
with Penn-Texas Corp., involving
liabilities

1955,
of the

priced

are

right

3:30

at

common

The

Manu¬

have approved the

and

17,

Chairman

share.

Colt's

of

stock

1955.

before

or

s#

The

5,

into

abroad.

Nov.

RCA, announced

expires
Dec.
"

common

debentures

102%'%.

The

for

debentures

of
on

1955.

The

a

bottlers

bottlers

Sarnoff,

Board of

distribution

franchise

Mission

and

as

Mississippi.

would

merger

serve

and

center

U. S;

to

shares

each
held

5%

the

would

of

amount

sub¬

debentures

in

standing
stock.

1980, at the rate of $100 prin¬

1,

agree¬

Beverage

convertible

3%%

of

$100,000,000

New

Corp.

Dry

Under

Cott

ment

of

Corp.

Mission

and

between

merger

Beverage

*

doesn't

that

aware

par

Radio; Corporation of America
offering to its common stock¬
holders the right to subscribe for

feet

The world's monetary situation is
in full chaos, but the NAM Com¬

$100

new

to
to

up

is

last

announced

were

ject

progress!

of

the

$25

Group Offering Huge

a

meeting

fine

from

Lehman-Lazakd Freres

which

a

value

capital

of World War II to make this sub¬

what

stock

1,000,000

stock.

mon

porate

of ^dis¬

to

the issuance of

shares

plant at Altoona, Pa. The factory,

matter

spe¬

reduction,; in

a

75,000

the

pertinent

authorized

shares

par

industrial
nations toward control of public
and private finances since the end
a

a

held.

Plans

fication. Enough progress has been
made

Corp., also

fraction additional shares for each

henceforth requires clari¬

money

the

(3)

a

increase

stock to

in

$12.50;

action at

further

to

preferred stock; (4) paymeht of a
20% stock dividend on the com¬

National

to favorable stockholder

Hardware

500,000

shares;
present

for

feet

*

Britain, has called

increase
from

one

«

meeting of stockholders for
16, 1955, to approve (1) an

Dec.

con¬

of

New

cial

stock,

Fire

issuance

Connecticut

erations

"What

American

in

by
(400,009

80%

National

of

calls

Colt's.

The' committee

(3)

II

the

holders

come

have already passed

the

term

brought

of

to

and

produced

exchange offer, which is
tingent
upon
acceptance

inflation,

considerable

a

and ten years

since

have

We

through

pro¬

a

The

convertible

monetary

«

General.

Connecticut

with

$1,500,000

standard

War

ford

exchange

the

Since the inauguration of the
Federal Reserve System, and as a
result of the fact that the
hegem¬

approve

57,000 square
feet.

square

for

of the National
Fire Insurance Company of Hart¬

ordinated

be

fruitless, now, to de¬
the issue of
financing a long,

to

additional

210,000

a

affiliation

standard could or should
have been resumed, or re-estab¬
lished, on a valuation basis that
would
have
adjusted the
gold

the gold

tinuous

gold

1955

In¬

called

meeting

war,

of

situa¬

has

stockholders'

20,

Los

"It is another matter to consider

whether, at the end of each

mittee

read:

can

its

and




to

during its
major argument advanced

thoroughly
closer

respect

advantage

is

a

like

Indeed,

paradoxical

a

standard. On

a

States.

is

with

costly
could

like

criticisms

(!) On page 5 one

It would

a

v.

views presented by the report:

were

behind

of

.

now

specific

put

influence

is

cussion."

like the unions. The NAM should

its

aspects

situation."

it

States

the

for

England,

Reserve

were

in

some constitutional amend¬
ments to protect our political
sys¬
tem from the
pressures

groups

and

monetary

a

business

the
United
after the War

to

(World War I), and with it the
responsibility for
international

standard

large

world

the

hegemony of world

passed

the

powerful

the

finance

quire

with

of

structure

during and after the War.

for

or

with

war

sound monetary system would re¬

with

an un¬

connection

in

credit

the report itself sug¬
restoration

of

two,
inextricably intertwined,
brought about a great inflation of

I

the entire report as it
stands can only be
misleading and
gives support to the continuation

well

in¬

was

precedented orgy of inflation. The

nately,

of

the

re¬

Many statements in the report,
part

second

the

events propagative

were

serve.

a

in¬

of

Europe

and

powerful

to make the supply

in

country

Specific Criticisms

functioning of the gold

contain

War;

"When

the report is that it doesn't make
clear beyond any doubt that the
existence of

1914

in

profound

ternal, the formal inauguration of
the Federal Reserve System. Both

people.

our

in

less

United

necessary

now

one

statements:

occurred

preserving intact the

France, Dlenmark, etc.)

as

World
Philip Cortney

even
realizing, it, the NAM, by
approving the report, has given its

sophisticated

Nelson,

subsequent economic

outbreak

the

sub¬

of

W.

have

to

were

fluence upon

Worse

tinuation

A.
R.

three
T. F.

by
Phillips,

developments in the United States.
The first of these was external,

a

misun¬

very

C.
and

events

"Two

.

the

to

"Bank¬

on

1938

in

read the following

can

re¬

port will only
add

jointly

professors,

capacity
The

excellent book

an

lished

for good or
evil.

our

ing and the Business Cycle" pub¬

has

great poten-

t i

calls

ety of the greenback standard."

be¬

to
can

of
conform to the gold posi¬
tion. (We are witnessing this right

our

Mises

von

tie

conform

money

the

endowed

Professor

making

money

monetary system "a modern vari¬

Com¬

mittee

a

of

gold, and this she

countries

than

still

reinstated.

standard

gold

her

authority

and the money

serve

instead

of

In

gold re¬
supply, arid
free market for gold is

relationship between

Na¬

Manufactur¬

of

of

trappings of gold circulation

rich

nationally, which would require change in operation of Federal
;
Reserve System.

tional Association

the

gold bullion system."

or

Suggests comprehensive study of
monetary problems aiming at worldwide restoration of

monetary

an

make

do while still

gold standard system.

our

effect

to

Life

General

Company

surance

(as the United States) to maintain

the value of

gold is essential

on

Connecticut

.

what

value

ground it fails

on

make clear that existence of free market

to

Connecticut Brevities

H.

country

a

Thursday, November 24,1955

.

on

special

money,

gold standard, and that it endorses inflationary bias of our
present monetary system.

the

D.

gold conform to the value of her

by the National Associa¬
exis'.ing confusion about the

to

such

to

open

standard,

Mr. Corlney maintains recent report

will

statement:;%

makes the

is

.

has

States
at

Professor

in his famous book

Robertson,

"It

United
affect

to

of

money,

By PHILIP CORTNEY

the

able

been

value

.

H

,
tj,

/

New York

—

REctor 2-9377

Hartford—JAckson 7-2669

Teletype NH 194

-

Number 5484

132

Volume

.

.

The Commercial and Financial Chronicle

.

'

nation,

HON.

By

GEORGE

Describing recent economic
from

ment

alike.

the

in the nation

progress

as

"better¬

up,"

often-neglected

;

that

within

the

last

this

nation

has

gone

economic

pale
in
:hi

half century

evolution

other

any

" the

fact

through

that

an

makes
.

.

long

self-betterment;

an

economy

of

thought

has

and

let

chase

down

us

passes

by.

us

while

^

Our total national production of

.

goods

;

and

'

services

r-

now

of

insurance.

a

At

million air conditioners.

are

investments

mass

life

only

could

un-

their

nation

a

in

These
better

a

"haves'*

of

make

About

25

million

families

own

homes today,

compared
with only
seven
million homeowners half a century ago, ;while
population has only a little more
than doubled in that time. About

common

:

things

pur-

own

the

turn 55% 0f our families now live in
of the century, people in this, homes of their own. Nearly all
country, had taken jout 14 million" the others want to. And ways and
life ..insurance
policies.
Today, means of helping them to do so
with the population only slightly are of greatest Concern in present
more
than doubled, and. with government policy.

out-of-date thought

practices, tie

opportunity

most

included

million television sets, nearly 3^
million washing machines, and

u

-

.

methods*of savings is the

must

we

.

continue to be. ..
One
of
the

can

old,
dynamic

years

"and how alert

economy,
be not to

ap-

billion. That is just many people owning several poliLabor unions to which 'many
.20 times as muich as .our national cies, the number of life insurance American workmen pay dues, are
outpptjn 1900, When you make policies has increased nearly 18 also investors. Not so many years

that

will constantly generate new and
better, paying jobs»for an evergrowing population.At the same

p^ce, rlses, since jV1*!65' to about 250 million.

Q^anc^

our economy
must provide
ever-higher standard of living,

time
an

line

a

if only a few
applied
to
our

even

when

^.......

.

what

see

of

This

11

known to the homeowner of 1900,
like vseven million radios, seven

in this country which wfe are
trying
most fervently, to, keep
going, and to continually improve,
Let's see just how widespread
and "important this, flow of purchasing power to the broach base
of our economy has:been and will

Progress

the,turn

happening,

.

outmoded

be,

Stresses the growing field of investment-by all

....

an

and

to

economically,
since. then. Only by
making* such
a comparison can
you realize how

labor and management
curbing inflation is the
Eisenhower Administration's goal, and because a flexible mone¬
tary policy has been effective, there wilt be no recourse to
deficit spending to maintain prosperity.
;r :
is

century

been

segments of society, and points out
have the same basic interest. -Says

It

back

billion.

not
only to
live
adequately, but to save besides. That
is the basic economic development
money

-

™

Economic

look

v

Secretary Humphrey recounts
that have benefited all, worker and business¬

advancements
man

bottom

the

v.,,=
Years
of

50

Lets

Secretary of the Treasury

of
them
are
becoming
"haves"—people who have enough

more

needs an up-to-date way Of
thinking about itself, and up-todate policies, in keeping with its
strength and growth potential.

HUMPHREY*

M.

unique nation of "haves'

a

that

Prosperity Without Inflation
Or Deficit Spending!

(2195)

^urn ^
century, today s ^Ownership
Wrtuctaor,

.

of

individuals

ag0> union .treasuries.were
in Today many of them bulge with
^:sumst
ow.n ^ anS

story; of;

man's
*to

efforts'

achieve

a

better lif£7 :

/
"

The result .is

—that

-day

is

Now, let's look at what you
millions of American citizens have

:

vnn'iinv^^hppr^prpatinrl
=nl
111

to

dium

savers

L™
!!h Ih.i
economy, and what

me¬

ernment

and investors.

this

a

continue

na-

George M. Humphrey

now

have

portunity

today

is

are

that you

means

that

lion.

*n 1900.

then.

wag

to

u»

press
a

the gov-

doing

every

making

in ih»

we in

to

,even

see

,And

possible opforward and

times

nots."

andnot a nation of "have

We

mendous

have

been

in

beneficial

and

tre-

a

evolu-

tion, peacefully bettering the lives
of

most of

us

,

better life for

our

to

wagon

rising

this

nation

"have"

have

star

of

sure

of its continued rise—to

a

to

make

u

was

in

icut

is

the

that

anHL

poor

important

thing

change

making "have nots" into "haves.'
We are admirers of, and believers
in
this
uniquely American
growth and progress.
But

on

found

that

torn up was

that

found

in danger.
it

had

not

In fact,

nation

a

that

had

then

even

As

result,

a

found the

we

ax

x,.

th

f

familv

ordrnarv

e

.

f

in

our

wonder-

pletely new set of standards m
thinking about ourselves. We are
nafion of "haves," not of "have

1900, individuals had liquid
of all types amounting

savings

nots „

This nation's

economy

.

.

.

—

.

;

\

—

,•

This announcement,

Not

a

of

an

which appears

offer to buy

any

as a

matter of record only, is not

an

offer to sell

or

the solici¬

of these securities. The offering is made only by the Prospectus.

New Issue

al¬

256,503 Shares

econ¬

blown up with the hot air of
inflation, to a point where there
was
real
danger that it might
omy

burst, letting us all down with
crash that would have maimed
as

a

Colorado Interstate Gas

world's defenses

invitingly low.

Common Stock

We found the economy's growth

-

Company

us

nation, and dropped the free

a

hampered and hobbled by

a

tan¬

(Par Value $5

gle of successive layers of regu¬
lations, controls,
subsidies - and
taxes
imposed
in
past
emer¬

gencies.

The economy
into

twisted

the

shape

was

per

Share)

being

of things

past, when it should have been
reaching freely for its rightful

Offering Price $57.50

Share

per

future.
,

addition,

In

we

found

defense

spending being used partly to buy
defense, and partly as a crutch to
support
an
unsound
economy,
thereby endangering both defense

Copies of the Prospectus
and others

the economy.

and

other

In

economy

of

out

words,

we

found

as

are

may

be obtained from such of the undersigned

qualified to act

as

dealers in securities in this State.

an

in danger of going stale,
with the times and

step

out of step

with the nation it had
economy fearful of
the ghosts of bygone crises, living
precariously on the treacherous
dodges of inflation, subsidy, and
to

serve,

We

Union Securities Corporation

an

excessive crash-and-crisis govern¬
ment

The First Boston

-

'

Corporation Carl M.Locb, Rhoades & Co. Merrill Lynch, Pierce, Fenner & Beane

speeding.
have

been

reshaping

this

government's economic
policies
into the policies required for a
strong and forward-looking na¬
tion, its economy firmly footed
self-supporting; an economy
that will pump a continuous new

BIyth & Co., Inc.;
Harriman Ripley
Incorporated

Boettcher and Company

& Co.

Eastman, Dillon & Co.

Kidder, Peabody & Co.

Goldman, Sachs & Co.

Lazard Freres & Co.

Lehman Brothers

;

and

flow

of

nourishment

into

the

day-to-day American evolution of
Sec'y Humphrey before
Institute, San
Francisco, Calif., Nov. 17, 1955.
♦An address by

the

American

Petroleum




Smith, Barney & Co. Stone&Webster Securities Corporation Wertheim&Co. White,Weld&Co.
November 18,

1955

has

to tess than $1Q billion. Now such ?rown ri?ht Qver and has left be,
^aymgs of individuals m this hind in the dugt> both s0cialism

earn

ready ceased to exist.
'

y

stock in Amer-

.

tation

$30

#

.

'

been

even

million

than

country total more tnan 2^40 oil- and communism.
The consequence of this brilliant
more than $4,000 a year. llonThose with inadequate incomes
Last yea£„.al?nP„L
human achievement in our nation
for a decent living are becoming bought equipment for themselves
Continued on page 32
fewer and fewer, and more and and their homes of almost $30

hil evolution has resulted in a
tremendous upheaval of this nation's whole economy that really
has created a different kind of

we

properly recognized by economic
policymakers of the past two dec¬
ades. They were too busy fighting
the ghosts of a "have not" nation,

15

more

most
$2,000 per worker.
Such
retirement plans were practically
unkn0Wn in 1900.

was

hl* Job-all have had a part m j 0„t of every 10 American
our new Productlve wa? families earned as much as $4,000
of llfe*
a vear in terms of today's prices,
The P°lnt now is that the peace- Now almost half of our families

coming into office we
this great day-to-day

American evolution from the bot-

in-

underway

,

keep

1-

.

groups have received the
greatest share of our increased
income. Early in the century, only

come

have

had before.

own

since

loWf„ and mldd'e i?"

I90°'

bath major parties

^vmSn h
farmer and the city man, the
i^0rn-a? 3
i"16 ai! i
ma? a

an

^

income

"than

more

Americans

.

®
famUieSytoday
to the ordinary; individual and the
icaTwrporafio0^" MtL'^urn^f ordinary family in ouT'wonderthe century, this
just getting land economy. We need a comever

all

unf0^gha$Sthe'emptoyer^tt^ridi 8^ JSfj

existedTodav

vestor—a man with a real financial stake in the future such as
other average citizen anywhere

lm

as

investment

such

making himself over into

1900

population
production, three times as

,jk

much

11

We in this Administration

hitched

what

income per mani woman

Qur

No

^ef's
some other ways in billion dollars invested in pension
v'hlch the-average man on the snd retirement trust funds. This
street an this nation, has been represents an investment of al-

and child jn the whole

Here

-haves?"

;vv;

0ur nationai income is now
over $320 million, After allowance
again for price changes,-this is

rUs

of

up

small

This

in the nation—is three times-what
^

to¬

nation

a

"made

•

this

nation

.

'

'

* •

•

*

12

(2196)

The Commercial and Financial Chronicle

spired

Probable

Impact of Atomic Energy
On the Petroleum Industry

and

by

Though hailing the

Company

in

progress

Commercial

Energy Act

demorogue".

define
cial

on

in

this

country,

dramatic

of

one

shifts

has

the

been

most

in

the

that

sources

problems

that

economical

still

the

*

commercial

the

of

the

century

the

statistical

in¬

formation

was

too

ac-

none

I

curate,

under

purposes.

clusions

coal

the

70%

ing

nation.

The

vided

divided

total.
to

Today

70%

energy!

they

supply

of

the
country's
percentage
has

Coal's

of

eliminated.
is

and

our popula¬
larger than in 1918

much

uses

more

energy

per

capita, the country's coal usage is
actually lower than it was then.
Now

we

widely

entering

are

heralded

what

the

as

is

Atomic

Age. The release of atomic energy
is probably the
outstanding iscientific achievement of the
century.

People

naturally

are

asking

whether atomic energy will in the
next few decades
do, to oil, what
oil

and

coal

natural

and

threat

gas

wood.

does

pose to the

have done to

What,

if

the

so-called

the new
challenger
reigning champion?

In

hydrogen

tion

for

the

research

from

power

atomic

research

most

in

as

has

fuels.

problems, .un¬
early days of
rosy
optimism, as it has fully
solved of the problems then rec¬
ognized.
That is not surprising
many new

suspected

the

the

atomic

had

in

military

priority
since

years

necessarily

during

the

war,

of

aspects

have

energy

the

and

hectic

the

re¬

trying to appraise the prob¬
able impact
on
our
industry, I

search

cannot

accept the views of a few
incurable optimists, who focused

couple

of

eration

their

dental

has been largely an inci¬
by-product of this great

attention

mous

only„on the

enor¬

theoretically obtain¬
pound of uranium and

power

able from
were

a

certain,

way

back

in

1945,

producing
power.

large

Neither

views of the

can

quantities
I

accept

talk

the

by Mr. Wilson be¬
Meeting
of
Independent

Petroleum
St.

Association
of
America,
Louis, Missouri, Nov. 1, 1955.

U.S. CONSUMPTION
(AS PERCENTAGE

OF

area

Until

power

a

gen¬

claims

not

and

of

that

atomic

already-solved

economic

problems

profit,

know

the facts

demagogue.

investment
power

future

bonanza

a

assured

arrant

near

anyone

form

an

vate

at

FIGURE

If

ago

private industry

the

does

presented

Annual

to

technical

pessimists, who think

that

Atomic Energy Act turns

new

and

an

*A

fore

years

program.

the

in

of

in

have been truly amazing.

over

that atomic
energy would soon be

achievements

in

either

Any

generation

will

have

to

a

the

be

in¬

be

to

Since

CRUDE

Would

provide

waste

disposal

safe

those of

as

lo¬

substantially
as
the existing atomic

While this factor of safety

costly, and

would

well be higher

may

political

any

feel

that

substantial

subdivision

could

it

relaxation

permit

of

present

precautions.

Also, the cost of lia¬
bility insurance for a plant lo¬
cated in a populated area is likely
be either unobtainable

to

hibitive

in

cost 'for

or

many

pro¬

years.

ground

or

well

may

decrease

the

area

re¬

Government.
now

(The

Government

panies.

In

sure

uranium

of

the

on

other

fuels,

in

a

trend

riched"

uranium

than

more

toward

the

use

of

containing

the normal

percentage

fissionable; 'sftofns,
and
these
would
be almost ^prohibitive
in

price if produced commercially.
Confirming this viewpoint, Keith
of

am

the

this important
a

real

tribute

progressive drive of Amer¬
I

do

misled

think

into

many

thinking

have

that

(2)

Between

from

now
on

10

and

(the timing

25

years

depending

25

or

lieve

BY

on

summarize

in¬

our

opin¬

my

development is highly
nation and the

to the

will welcome

the

country's

growing needs for
Effect
To

opinion,

in detail

if

even

rapidly

Fuels
for

reasons

analyze
on

our

more

indus¬

developments,

they should be speeded

another,

be.

let's

power

somewhat by
or

the

the effect

try of such

of

power.

Residual

on

understand

this

the aid

in helping to take

energy

of

care

Beyond that, I be¬

years.

we

atomic

subsidies of

as

one

up

kind

they probably will
place, heavy resi¬

In the first

dual fuel oil would

only

oil

is the

product

only

be

almost the

affected,

as

in substantial

one

central

by

it

use

the over-all

plants.
While
consumption of heavy

fuel

been

oil

Figure

1

runs,

and

been

growing slowly,
that, when ex¬

shows

in

pressed
tion

power

has

of

percent

both

U.

S.

total

domestic
consump¬

production have
the end of

declining

since

War II.

Over

the

past
nine postwar
over-all consumption of
heavy fuel oil has decreased from
years, our

28%

22%

to

domestic

from

duction
runs

has

16%.

of

the

refinery
been

volume

runs.

domestic
cut

of

Our pro¬

from

refinery
25% to

If the figures were in dol¬

technological

lars, the percentage would be still

partly

lower.

on

develop¬
the trend of

Residual

FIGURE

OIL

a

world, the impact on our industry
will be negligible over the next
20

2

FUEL

coal

As

few words, I believe that,

important

World

been

real

a

ments

up

behind!

fact,

To

ion in

crude

speed

eco¬

foregoing is even close to

while

objecting to the Government,
the utilities commissions, or the
companies making these arrange¬
to

his

and

that

sure

far

impact would it have

"en¬

of

lag

of

dustry?

ar¬

fuels

Lewis

make

to

not

If the

processing
the
spent fuel slugs, for atomic waste
disposal, or for insurance. There
is

L.

will combine wita

fair appraisal of the outlook for
commercial
atomic
power,
what

an

heavy

John

a

subsidy

form

years

more

side the United States.

for

rangements

ments and

no

return

or

partly

have

25

there is a real
world shortage of coal today out¬

required.
Some
of
them may also have indirect sub¬
sidies in the' price they pay for

Armed

will

the

the

that

matter

investment

now

Forces

next

nomics

com¬

these proposed plants are expected
to be commercially competitive.

rather

the

does

shared

or

interested

takes

fair

a

ica—but

by-product
Although the Govern¬

;

«-

•

the above-mentioned fac¬

successors

understanding with the local pub¬
lic utility commissions that, in the
interest
of
promoting progress,
the company v/ill be permitted to
charge rates high enough to in¬

producing plutonium
high cost for weapons,
it is probable that before
long the
at

of

others,

apparently

to the

for

price

number

a

development—it is

widely diffferent prices
to
different uranium
producers,
depending largely on their costs.)
(4) Would get no Government-

ment is

ing charged to research
by

I want to make clear that I

pays

]■■>?'(*

of

steam

the

atomic'energy

the

not

either by outright purchase or on
a rental basis that
fully covers at
least the average going cost to the

future

dent

ally competitive with the average
conventional thermal plants."

(3) Would pay for its uranium
(or
other
fissionable
material)

plants."

of

in

so-

units is expected to be economic¬

alternatives also cost money.

the

in

conventional

price of competitive
fuels, while I both expect and
hope that the price of oil and
natural gas will increase enough

plants, at least

Technology, and a former
AEC Commissioner, said recently
of these projects, "None of these

quired and permit building plants
closer to populated
areas,
these

and

As to

tor

unsubsidized commercial

tute

inside huge steel shells

ever¬

power systems

If you

commercial

Glennan, President of Case Insti¬

While putting the reactors under¬

SOURCES OF

USES

fuel

is

our

least

3

U.S. ELECTRICITY

100

IVY//

80

V/1//, /// ✓,' /

VESSELS (INCLUDING

'////"/",///'
/// //. /'/,

/

''///// '/

%

plant

a

believe

we

nation's

you

In

con¬

con¬

to.nnake
competitive,
I believe the price of coal will be
the principal determinant.
If oil
and gas prices do rise, I am confi¬

an

costs

the

construction

power

Con¬

of

economical,

fit into

conven¬

On the

-

It

recent announcements

100

60

Industrial

will

hydro

check into them, however,
will find that not one of them
qualifies under my definition of

on

up

capital

SALES OF RESIDUAL

RUNS)

set

higher than for

FIGURE

OF DOMESTIC

to

com¬

-power

I

RESIDUAL FUELS

Board.

Mr.

without4 displacing
then-existing
generating facilities or preventing

six of which are supposed to be
completed between now and 1960.

development;

have

fuel.

Plutonium.

in

that
a

National

by

nuclear-power

as

growing integrated

\

substantial part of the cost is be¬

guaranteed

pri¬

are

no

is

commercial

new

'..'.i,.:

power

he

he

or

becomes
it

might appear
be questionable in view of sev¬

to

higher than necessary
modern plant using conven¬

before

How¬

al¬

important
nevertheless

than needed, as a practical matter
it will probably be many
years

producing

the

out

by hydro and

trary, when and

and The

ing rates

is

in

uncovered

of

pointed

tional steam stations.

from

and making a reasonable profit on
the total investment, while charg¬

piles.

I think it is fair to say,that

ever,

this

involved

remote

fuel

converted to atomic fuel.

or

was

generated

/

plant.
first,
the
Shippingport,
Pennsylvania, plant, the Govern¬
ment
is justifiably paying over
half the capital cost; in others, a

(2)

government university, and indus¬
trial
laboratories
on
the
many

problems

they

cation, safety devices, shielding
equipment,
and' provisions - for

so

done

points

at

ference

not

am

plants,
these
factors are highly
important in
determining -whether or not
a
nuclear plant is really competitive.

in my admira¬

no one

v

•

called

but

this

will be much

New Problems Uncovered

yield to

another,- I

or

in

ventional

devastating.

I

form

tional

"fusion"

bomb

that:4. L-

agree

supplies,
high load factors.
,;

with

those

eral

of

because

any,

the

subsidies.

only

justified

for

which

the light elements by
the kind of reaction which makes

Although

58.5%

from

power

some

faded, and wood has been almost
tion

I

proc¬

The

getting

concealed

or

of

(1)-We

of

energy

on

experts will

the basis of financing at commer¬
cial rates, paying the usual taxes,

burning of wood

By the end of World War I, oil
and gas had grown to about 15%
close

uranium

on

Slowly

■*

implying that subsidies cannot be

re¬

speak

open

mercial

pro¬
development to
date
has
been
remaining done. Near the end of
my paper
the energy supply was
I will discuss the much more re¬
between
oil,
gas,
and mote and difficult
possibility of

of

the

I

atomic

Production

Defining commercial power pro¬
duction in this way, I believe most

con¬

be

Specifically, I consider
qualify as unsubsidized,

the great bulk of the research and

water power.

of

when

fuels and

based

esses

the

about 20%.

10%

after

referring to the "fission"

am

Robert E. Wilson

energy

of

discussion

atomic

of

supply

reached

Power

built

Whelchel,
of
Pacific- Gas'1 and
Electric, during the 1953 'Atomic
Energy Conference,
j
.'ldoking
to the future, we do not expect
nuclear power to supplant power

„

Develop But

conventional

subsidies.

from the

of them.

many

Will

factors that might lead to all sorts

area,

In the great bulk of the follow¬

of

provided

about

have

I

viewing

the

burning

to bury you
of facts and fig¬

I might cite

Commercial

are

predietablq' political., arid .Other

one

going

mass

(in¬

ments by private enterprise, are
tacitly assuming such subsidies in

many
papers
published on this
subject in the last two years, but
rather give you the essential con¬

but

that

the

which

ures

best, estimates
are

not

am

costs

which

As

individuals, either
I
made essentially
this state¬
in government or industry, who
ment more than a year ago at the
predict early commercial develop¬ Third Atomic
Energy Conference

the

base between these two extremes.

energy. At

able
down

appraise

Most

atomic

expand in g

turn

to

.

needs

for

pro¬

be

subsidy to utilize atomic
No existing plant of reason¬
efficiency
would
be
shut

fuel.

(1:) There will be few, if any,
the complicated eco¬ unsubsidized atomic
power plants
nomic factors that will affect the built
in this country for purely
rate .of development without
try'-, commercial purposes tdithin ten
ing to take into account the un- years. These
"few, if any," would

•„

Fortunately, there is today

our

at

mean

fuels, and without direct
indirect*, subsidy/ - i vuse* .this

or

a great
body of fact and informed opinion
which gives one a well-established

supply

of- power

depreciation)

generating operations.

commer¬

commercial

well

may

without

criterion because, it is hard enough

serious

of

Basically, I

use.

duction

:.

prevent

production

for

power

solve

never

by

mean

cluding

of
may

I

competitive with power from

commercial

a

what

ventional

basis, will develop slowly, and therefore no existing conven¬
tional plant of reasonable
efficiency will b* shut down or
converted. Concludes oil industry will not be adversely
affected, but is likely to be aided by use of atomic fuels.
we

Defined

larger

of
the
plants

power

discussing the probable rate
development of the commer¬ covering its by-product plutonium,
cial use of atomic energy, I should and use it
up in its own power-

(Indiana)

Holds atomic power,

In
the
past
half-century
of
amazing development and change

tion

have value for generating
power, but to determine that value
fairly, a commercial plant should
pay the cost of separating and re¬
course,

*

In

claiming that the new Atomic
private industry "a bonanzain the

to

over

of

■

-

Thursday, November 24,1955

.

prices
of competitive fuels), a
moderate, but increasing, propor¬

the AEC's own pro¬
The plutonium would, of

duction.

of

already-solved technical and economic problems that
a
profit, "either does not know the facts or is an

assures

arrant

turns

Use

plutonium, at

least beyond

early profit.
•

Oil executive asserts that
anyone

form of

reasonable expectation

any

for additional

need

than

-

of atomic fuels, Standard

use

motives

■

Chairman of the Board
Oil

service

substantial

By ROBERT E. WILSON

Standard

by long-range hopes

more

public

..

/

I'Uiiii

~

'/<<"
' j//t
••

.

//

/

•••••••

'<

.

.

POWER

//*

TAN,'///"/''///,?.
f i"

I

-

-

-

-

•

•

•••••••••••••

•

•••••••••••

PLANTS

•

%

20
40

20

'46

'47

'48

.

'49

'50

'46
51

'52

'53

'47

'48

'49

'54

SOURCE

:

U.S. BUREAU OF




MINES

'50

"51

'52

'49

"53

YEAR

YEAR
SOURCE

:

U.S

BUREAU OF MINES

'50

YEAR
SOURCE: FEDERAL
*

POWER

ESTIMATED

COMMISSION

'51

'54*

Volume. 182,

Number 5484

.

.

The Comrpercial and Financial Chronicle

.

(2197)
profitable

product—the

selling for less
crude

oil.

As

than

only

the

industry's principal market. The
only use of atomic power in land
transportation which is being se¬

one

of

cost

result, we have
been steadily reducing our yields
and... converting more
and more

is in

of

even

residuals

our

able

a

into

riously

valu¬

more

products.
residual

if

is used

to

this

safe

mal

small part of

a

fuel

erate

and

authorities

10

a

to

15%

of these fuels.

In.fact, the total amount of resid¬
ual

fuel

tion

used

for

power

in the United

represented only about 3%
total

yqlume

here again
be

of

crude

of the

and
percentage would

the

smaller

even

I

if

run,

expressed

tral

lost all

we

power-plant

our

business

ly notice it; in fact,

we

the

knock

atomic

large

our

en¬

cities?

costs

much money to

if

climb

trucks,

cars,

too

buses

or

a

for

levels.

present

For

or

tainly

Instead, he demands in his car
things like fast acceleration, agil¬

conceivable

ity in traffic, driving comfort, and
the other qualities that come un¬

undertake
from

in

to

coal

residua]

motor

will burn

fuel

lower

make

make

we

seriously

we

more

into
cost

coal

gine,

our

least

could

we

used

For

this is mainly in
plants where atomic

small

ered.

as

lems

hardly be consid¬
An exception
might be in
locations

large

the

as

basic

of

cost

be

which

to

to

protect

at

to

a

the

passenger

shielding

shield

The

shielding

on

prob¬
almost

an

The

about

today

fuel

oil

take

for

about

residual fuel oil?

ships,

20%

crew

lost

out

or

cargo

While

war

some

over

$200,000,000 has

the

on

plane

a

within

service, I be¬

probably
few

a

tion

as

of moderate- size

ing

some

involved

will

make

There

plants

power

the hazards

their

use

ships
develop even
more slowly than in
large central
power plants.
But again, if we
lose
of

some

after

15

Effect

the

fuel

the

larger

20

or

Gas

Demand

Natural gas, also, is used

plants.

power

as

fuel

over-all

situation

the

nation's

power

is

this

area

Direct

once

in

has, of

in total

coal

course, gained

has

been

the

to

has

been

in¬

creasing,
it
still
accounts
for
slightly less than 20% of the coun¬
try's total fuel for electric
Outside

of

cause

low

at

gas

the

power.

been

unlikely to

with

race.

This

announcement is

such

be

built

prices

during,,the
warmer seasons when the
big gas
pipelines
from
the
producing
would

areas

otherwise

be operat¬

ing far below capacity. The avail¬
ability of dump gas at such low
prices will tend to decrease as
the

older

supply contracts expire
and as more underground
storage
for gas is put into service near

consuming

centers.

ties will make it

These

facili¬

possible to keep

long pipelines running nearly
the year round, the summer
excess
being stored in order to
have

it

available

In

The

or

Radio

combina¬

a

results

Automotive

or

shielding

ally

of

use

or

market.

kets

transporter

are

Bis

this

gas

energy be¬

to

few
pro¬

gradu¬

low-priced

priced

tric

cars,

buses,

and

trucks? In this field of land trans¬

lies,

of

course,

the




to

I

made

Army

in connection

Package

have

indicated

the

reasons

why I believe that no important
phase of the oil business will be

Continued

Power

an offer to sell nor a solicitation of an offer to
The offer is made only by the Prospectus.

on

page

buy these securities.

oil

be

due December 1, 1980

of
Convertible into Common Stock

The Debentures

consid¬

mon

Stock for

are

the

terms

per

share

to

the terms and conditions set forth in

subscription offer will expire at 3:30 P.M., E.S.T.,

December 5, 1955. The several Underwriters
suant to

$50

being offered by the Corporation to holders of its Com¬

subscription, subject

the Prospectus. The

at

and conditions

set

may

offer Debentures

on

pur¬

forth in the Prospectus.

place, even if atom¬
plants do become com¬
there

in from

is

Subscription Price 102l/z%

10

little
likelihood that the power will be;
substantially
cheaper
than
at
present; in the second place, fur¬
ther

years,

very

Copies of the Prospectus may be obtained in any State only from such of the several Underwriters, including the undersigned, as may lawfully offer these securities in such State.

radical

improvements in
batteries for automotive
do not appear to be in sight

storage
power

despite

many

Furthermore,

of

years

research.

solving these
problems would probably not af¬
fect

the

even

gasoline

business

Lazard Freres Es? Co.

Lehman Brothers

very

much.

Let's

review

automobiles.
is

that

facts

some

gasoline

is

On

relatively

a

part of the cost

car.

of

at

price of gasoline

the

the

refinery gate,
fuel

raw

cost

we

of

represents only about
of

the total

'Eastman, Dillon & Co.

driving

cf the total cost of the transporta¬
tion.
If we base our calculations
the

Corporation

Kuhn, Loeb 6^ Co.

Blyth

Co., Inc.

Glore, Forgan & Co.

F. Eberstadt & Co.

the

average, gasoline
accounts for less than one-quarter

on

The First Boston

about

One important point

cost.

(ex

:

one

Harriman Ripley & Co.

Kidder, Peabody & Co.

Incorporated

Carl M.

Loeb, Rhoades & Co.

Merrill Lynch, Pierce, Fenner & Beane

tax)

find that

the

Goldman, Sachs £/ Co.

,

energy

Smith, Barney & Co.

Stone & Webster Securities Corporation

Union Securities

' Wertheim & Co.

eighth

Any competing

Corporation

White, Weld & Co.

of mobile energy will have

source

hard time
the
the

beating such figures.
refinery price figure
relatively large factors

of gasoline taxes and
in

How about atomic fuel for loco¬

portation

25

While

Fuel

impact

mercially competitive
to

omits

for

Atom to Aid Oil Industry

the

the

the

substantial competitor
industry in certain areas.

Corporation ofAmerica

the automobile

on

possibilities

power

their

continue

Use of Atomic

or

and

costs,

distribution

distribution

costs

;

Bear, Stearns & Co.

and you can be sure that the
gov¬
ernmental bodies would not
long

tax

the

Hemphill, Noyes & Co.

Hornblower & Weeks

Ladenburg, Thalmann £i^ Co.

would

certainly not be less for charging
handling storage batteries,

to

Co.

Incorporated

W. C.

and

neglect

A. G. Becker

competitive

November 18, 1955.

Langley & Co.

Lee

the

a

of the oil

heavy

In the first

ic

a

Land Vehicles

motives,

become

automobiles?

mar¬

rapid growth.
Doubt

energy

the

efficient storage batteries for elec¬

small

over

very

higher

bound

pump

in

possible that, in
of high first cost, the heat
will within a few decades

3l/z% Convertible Subordinated Debentures

Might not cheap electricity
from atomic power plants be used
to charge some new kind of
highly

a

natural

not atomic

losing

is

neither

Power

ered.

higher

gins to compete, and again
tears will be she,d by the gas
ducer

It

also be

confirm

business, we can rule out engines
using atomic fuel, but there are

winter

gas producing areas can be ex¬
pected to decline gradually

whether

discussing

atomic

at

generation outside the

power

summer.

can

homes

of the atom and by
available element has

tested.

Other

for

consumption

The

prices.
for

cool

spite

for

by its usual
for

to

$100,000,000

efficient^

more

be anticipated from new

the

full

household

need

reversed

specula¬

some

materials.

producing

gas

it is used today largely be¬
it is available as
"dump"

areas

he

the estimates

possibility of find¬

much

every

other

generation

power

greatly

of natural gas for

use

They

when

the prior opinion of the physicists
that no major improvement can

generated.

volume.

While the

higher-level heat

needed indoors.

Atomic

seems

take

convert it to the

than

wastes,

pumps.

that

shopping

and power requirements far lower.

of

devices

customer

shielding, the problem of handling
cost

driving heat

the

to

to be ruled out

the

for

are

low-level heat from outdoors and

apartment house heating

radioactive

years.

has

property

now

how

to

as

held its percentage since the
war,
and

nomical

atomic

of atomic energy

use

or

handicaps:

,

that

other remote locations, par¬
ticularly where the climate is not
cold, electricity from either
coal or atoms might prove eco¬

buys gasoline.
home

13

the

closer

B.t.u.'s

mere

or

Figure 3 shows

the

Note

field,

12

is, however,

a

ships

new

for

this

gallon

a

normal

too

ing?

much

dollar

a

the

rln

These

In

cost

of

cents.

high
equipment. The high
equipment cost is pointed up by

tion thereof to minimize this
prob-:
lem. Shielding ability

business

years—what of it?

Natural

on

oil

instead

important use
heating.
that

Greenland, where diesel

may

will replace our distillate
fuels, used mainly in home heat¬
comes

far less efficient and reliable

energy

northern

space

chance

any

or

energy would seem to be
attractive only in locations like

fuel

there

equivalent

generating elec¬
for producing heat,

atomic

in¬

energy

the competition with the gaso¬
line
car
when gasoline
engines

put it back in the

tric power

an

For

spent

and

can

shielding material

on

commercial

should

oil

unit.

plane

a

been

general project,

lieve that the
comparatively high
first cost of atomic
and

the

figure,

diesel

"guess¬

some

$5,000,000. Even
however, would be

of unlimited
range is so great that

of

and
possibly
other
special naval vessels will be atom¬

ic powered for

for

were
as

ten times the cost of

practical.

After the various transportation

seems
car

business

uses, the next most
of oil products is in

general heading of "per¬

electric

seemed

Space Heating
Competition

in

weight
of
needed
such a plane has been

the military value of

ever,

the

it might
the

large bomber

very

the

were

constitute
to

der

that

this

Possible

formance."

the

sidewalls

bar, though

feasible

of

submarines

in

have

estimated at around 50 tons! How¬

What

of

to

en¬

dangerous radia¬

th^

too,

seem

plane.

fuel.

our

thick

similar

insuperable

where transpor¬
be several times

tation costs may

have

commercial

planes,

would

remote

atomic

an

protect the passers-bv.

make power,

very

and

thou¬

many

concrete dashboard

or

feet

tions,

lighter distillate fuels is also

power

steel

passengers from

small proportion of our

a

would

we
a

several

at

it from coal.

While
to

sands of dollars for

gasoline,

than

of

cost

fuel

plants and convert

power

much

before

"considerably less than $8,000,-

000," and there
timates" as low

dustry.

far V Most important of all, however,
the buyer of gasoline is not look¬
the ing primarily for cheap B.t.u.'s.

fantastic. Even supposing
people could afford the minimum

long

hold

Is

idea is

Dr. Lawrence R. Hafstad said the probable cost would
be

operating cost of the gasoline en¬
gine seem practically certain to

play with.

lose most of it to coal before
that,
and no tears will be shed.
Cer¬

kilowatts.

di¬

energy

Here again the low first cost and

costing

car

more

turbine

gas

electrification

eventually

above

small

fuel

many

scheme

high-compression engine than

a

atomic

held two years ago, Dr. Walter H.
Zinn said he had seen no such

would 1926 gasoline in
any engine.
Another important point is that
the gasoline engine is a very low-

In

convert

Reactor, designed to generate 1,700

rectly to electricity, but this seems
highly unlikely. At a conference

useful work per gallon in a mod¬
ern

seem

for

would

modern gasoline,
which,
largely to improved anti¬
rating, will do 65% more

diesel

it

There is, of course, the remote
possibility of revolutionary new
devices
being discovered which

They

would

a

of

traffic

much.

as

$2,000, the engine repre¬
sents only about $300 of that total.
The designer of a competitive type
of engine or motor does not have

bar

Either

im¬

is

so

around

would

became

to be sure, greatly improved,

thanks

an

twice

factors

well

may

of

but

over

cost engine.

should

during

are,

that a theoretically safe
"package" might be de¬

probable,

the next 25
years, we would hard¬

nor¬

regulatory
willing to risk

being

resurgence

cen¬

in

it

:j \

signed, but I think psychological

dense

if

even

or

one

realize

years.

in

dollars.

So,

in

cost

I seriously
imagine either

possible wreck of

shielded

1954

you

railroads

gine

genera¬

States in

economical

if

power

Incidentally, gasoline prices, ex
taxes, are about the same as they
were in 1926, whereas automobiles

be

to

prove

(which

can

electricity. As you see from
Figure 2, power plants take only

the

possibility

a

should

service

doubt),

gen¬

as

large locomotive. However,

a

both

Moreover, only
our

discussed

motive

portant.

13

Higginson Corporation

21

14

The Commercial and Financial Chronicle

(2198)

posits

A

Progress Report

Canada

on

...

By JAMES G. K. STRATHY*
Vice-President

L
Vice

Director

and

Securities

Dominion

Corporation,

Ltd.

of Canada from the formation of the Confederation in

Notes greatest

to the recent past.

since World War

Reviews

sources.

re¬

Canada.

tario.

is

Chal-

destiny.

lenging

ex-

tremes

of dis-

t

e,

e

e

of
bar-

have
con-

n

and

last

tiers

fron¬

the

of

Arctic

North

the

and

of

in-

reaches

most

the

Pre-

cambrian
Strathy

of

Shield

destined march.

as we Canadians might
like
to complete these
amazing
developments from our own physand

know
and

resources,

we

respect our limitations,

have

true

in

monetary

and

to

come

value -of

these

appreciate the

participation

your

economic

great

enter-

prises, and nowhere in this

coun-

try has the financial participation
been
exemplified
more
clearly
than in

Boston, where

the. most
been

so

important

decisions

in

made

this

of

investment

countiy

will

and

many

have

continue

to

be made.

Here it

"Boston

that

was

Trustee"

the celebrated
laid

down

early principles of sound
ment

under

Man

Rule"

Trustee
his

the

invest

clients

freely

conducted

crehon
their

invest-

"Prudent

allowed
the

long

as

the

of

money

he

as

faithfully, exdiscretion, and obmen of
prudence, dis-

and

intelligence managed

affairs.

told

am

careful

that

were

remarked

prudent and
of

some

that

his

Trustee, would
that he could

~

-

so

Boston Trustees that

office

the

himself

own

the

one

of

father,

invest

not

in

watch

window.

I

investment

And

now

Tms

period

also

industry, the pulp
and paper industry and the aluminum refining industry.

Curing

World

War

I, Canada
for the first time developed miscellaneous
heavy industries for

search

for

essary

to the

additional

metals

nec-

effort also took

war

place.
Stimulated

by development and

rnanufacturng during World War
^ the 20's saw the first real in-

nothing
from

his

that

scene.

a

of

of both heavy and light manufacturing. Several new mining areas

also opened

were

particularly
in Quebec, and for the first time,
many U.S. corporations established
subsidiaries

branches

or

in

Canada, primarily to take advantage of preferential tariffs for
export to British countries.

Canadian

Defective

it

—;—

in

Seaway,

and

^

miaht

Lv

he

in

history of Canada
which

Canada

The

Prior
the

to

confederation

itially

with

the

in

1867,

concerned

was

fur

trade

in¬
and

fishing, then with lumbering and
u

iarfnina
ai
allied
iea

and

to
10

these
mese

Between

lL
■jn

light

1867

and

industries
industiies.

1914,

paral-

in

the

of

aspect

Canada

1939

years

became

arsenal

of

to

known

the

1945
the

as

British

Empire.
Great exnansion took place in our
industrial plant in order to proall

kinds

of

armament, and
a
period of in-

although it' was
tensive utilization of natural
sources,

many

*An

Bcstcr

United

States,

re-

discoveries

new

of

f™gress Aftcr Worl11 War 11

Hl*herto,

gas*

nized

by

Canada

had

to

development of these two

vital

natural

chain

resources

reaction

established

Other

measures

sjon—^he
and

population growth,
of the gross

the

(2)

of national expan-

trend

national

last

10

unemployment,

and

being

the

the
pre¬

then prevailing

Canadian

now

innew

which

and

grade

and

deserve

special

corporations

uranium

and
Provinces

development is creating is

one

of

population increased 17% itself—
a very vigorous increase.
•
Tt

is

becoming

Canada

deposits

more

cf

have

recently

in

commonplace

tenS

In

think

to

the

to

funds

that

extent

are

short

back

now

just

term

the

over

2% level.
Canada's
Fiscal

Fiscal

Several

and

developing extensive de-

i

Trade

export trade

our

larger role in our
it does in yours.

much

a

than

economy

illustrate, in 1954, export trade

represented 16.4% of
with

compared
U.

S,

the

G. N. P.

our

about

4%

in

Shipments of iron

first

eight

have been

months
than

more

the

for

ore

of

1955

$53 million,

compared with $15 million in the
same
period of 1954. Exports of
primary
have

and

risen

semi-finished

from

$20

1954 to

$45 million in

ilarly,

crude

less

to

steel

million
1955.

petroleum

the

say,

$120

are

in

Sim¬

of

exports

increase

largest

million

million

$950

been

important part in the post-war
period.
After
eight
successive
an

of

years

deficit

surpluses, a
million was in¬

$150

in the 1954-1955 fiscal pe¬

curred

riod.

budgetary

of

higher at about

for

the

first

eight

1955.

Nevertheless,

the

tax

rate

moderately in 1955
premise
that
economic

the

on

of

a

$160 million, but events

ing

turn¬

are

out

considerably better than
originally expected, and it now
probable

appears

deficit
next

for

that the

the fiscal

March

31st

actual

ending

year

will

be

reduced

Canadians

more

present population

our

16 million

of

offers prospect

market large enough to sup-

a

port

greatly

a

increased

number

variety of industries operatat high levels and technical

factor of
conscious.
^

It

is

interesting to note that

as

result of the 1954 revision of the

Bank

Act, which is reviewed and
by Parliament every 10
the
Canadian
chartered

years,

ing field
these

in

a

big

very

way,

mortgage loans set

up

have

generous terms

very

a

and
with
gov¬

we

are

/

Natwnal Product,

,s

Turning to the trend tin the
§r9ss national product, I should
point out that similar methods of
compilation of GNP are used in
'Canada and the United States, and
R is generally admitted this is one

a"d cnly f-7 bhilu°n in ^ Ey»

allowing for changes

in

than double the level for

more

1939 or even 1929. The pace of

Canada s development in the postw9r

1946^ through

years

195d,

.revea*ed

by the fact that its GNP increased

£?.ite? StateS'

y 76%. I see no

real reason why this growth trend
should
not
continue,
indicating

clearly the dynamic possibilities
for the future for investors in
Canadian
years

industries

over

the

ahead.

my,

a

Our recovery

review of

some

in

the

econo-

of the im-

U.

S., this period is
by the moderate re-

have

than

1955

it

continually faster in

the

labor
in

Investment

In

Canada, government policy,
through Central Bank control, met
the recession in a variety of ways.

manufacturing

and

plant

and

again

has

ex¬

panded in 1955, and the mid-year

investments indicates
total
capital
expenditures
be
somewhat
higher., than
of

survey

that

.

will

increased

This

year.

invest¬

capital

growth

a

in

expenditure.

consumer

Wheat

and
wheat
flour, our
agricultural
export,
is
slightly down from last year. The

major
wheat

problem,

serious

a

just

product

a

generosity
the

while admittedly
Canada, is not
of the temporary

for

one

of

large

nature.

stocks

in

sented

of

Basically,

grain,

repre¬

1954

by a carryover of
900,000,000 bushels, have
largely because of world

almost
arisen

expansion, and this

acreage

acre¬

age expansion has been the result

national
tariff

and

policies

of

protection.

subsidies

The

Cana¬

dian wheat producer is fully pre¬

to compete

pared
in

the

has

world

equal terms

on

wheat

confidence

in

market.

He

the

quality of
his product, and his technical ef¬
ficiency in producing it. However,
is

it

quite another thing to com¬
wheat grown in other

with

pete

high

by

heavily pro¬
high tariffs or

either

subsidies,

both/

or

While

admitting that the agricultural in¬
dustry is probably the softest spot
in the Canadian economy, it is in¬
teresting to note that the impor¬
tance of agriculture is declining
in

the

over-all

picture.

Prior

to

World War I, agriculture was the

prime industry in Canada. In 1954,
only 7% of the G. N. P. was de¬
rived from

agriculture, while 39%
manufacturing, con¬
and the mining indus¬

from

came

struction,
try.

In

1926, comparable per¬
figures were
19%
for
agriculture and 28% for manufac¬
centage

force.

new

period,

post-war

particularly related to our
rising level of exports of pulp and
ment is

and
non-ferrous
metals.
Capital outlays in the paper prod¬
ucts grouo of industries are ex¬

paper

turing, construction and mining.
Again, on foreign trade, it may be
interesting to note that values
have

increased

from

billion

$1.7

in 1939 to $4.2 billion in

1946, and

to

over

in

addition, its character has

$8

billion

dergone

many

66%

of

total

with

the

with

U.

S.

countries,

1955.

changes.

And,

In

Commonweal; h

distinct change

a

un¬

1954,

foreign trade was
A., and only 18%

British

the

in

from

1939

when

were

52%

U.

the

even

proportions

S., and

40%

Com¬

pected to be 73% higher than in
1954.
and
in
the
non-ferrous

monwealth

53% higher. In¬
creased capital outlays in mining
and oil wells may run to
28%,

materials, and only 37% partially
manufactured or fully manufac¬

and institu¬
tions, schools, hospitals, etc., to
20%. In the aggregate, the main

33%

metals

in

group,

housing

to

13%,

with

at

only

above last year.

1%
In
at

equipment,

latter estimated

the

rather

in construction

is

than in machinery and

the

10%,
both

imoorts
1955,

period, trade is up
with exports and
expanded
during
with significant trade

same

least

in

months.

been

appears

equipment which has been one of
the
main
driving forces in the

during

12

has

1953-1954

and

grown

deficit

past

from this modest

to be
soundly based. Employment is ex¬
panding to new high levels; in
fact,
employment
opportunities

cession of 1953-1954, followed by
the extraordinary, rapid recovery
the

of

rapid,

very

increase

ual sectors of the Canadian

our

tected

the value originally forecast for this

of the dollar the 1955 estimate Is

This expansion
growing economic ac¬
tivity with an increased volume of

reflects

tional

very

xr

categories
in the main, from

come,

ernment guarantee

under the Na¬
Housing Act. As a result,
residential construction, instead of
declining in 1954 with general
business
activity,
actually
in¬

broadly

various

countries where it is

recession

V

,

,

which

has

the United States.

of

considerably.
a

throughout the
and

imports has

our

fairly

spread

reduced

was

banks entered the mortgage lend¬

to

highlighted

private

discovered

plays
To

Foreign

know,

you

The increase of

Operations

operations have also had

tion of 10 million

in

Saskatchewan

Canadian

As

months

amended

As

in

newsprint.

has been in forest products which

population of 25 million in the not
s0 very
distant future. The addi-

of

Territories during

Ontario.

now

dis-

lumber, chemicals, iron
primary iron and steel arid

ore,

to apply the monetary brakes

sary

1954, the net in-, activity in the present year would
crease of 405,000 or at the rate of show
considerably higher levels
2.7%, was considerably in excess of activity. At that time, the fore¬
of the population growth prevail- casted deficit by the Finance Min¬
ing in the United States..The ex- ister on this year's operations
panding opportunities which our was indicated at approximately

economic trends of the
development by Gov- past two years might be useful,

War,

companies
are

mineral

metals,

have increased from $4 million in
1954 to $18 million in 1955. Need¬

were the discovery and' portant

subsequent
high

•

Thursday, November 24,1955

.

With the rapid acceleration of
activity, including increasing em¬
ployment during the past eight
months, it has been found neces¬

In

years.

Before dealing with the individ-

ermnent-owned

I
by Mr. Strathy before the
Club, Boston, Mass.,




manufacturing

important

coveries

the

1955.

expansion

natural gas.

the

JVcv.. 22,

and

stimulated

dustries and the formation of
industries allied to crude oil

railroads

Investment

the

on

the

widely recog-

two

require" JJ2*'^ ,n
ment°£
both Petroleum and iron the gain was on
ore. The

constructed which led to the
address

in

strategic metals also were made.
the best measures of national
Between 1939 and 1945, the G N.P. growth. The revised estimate of
increased from $5.7 billion to the gross national product in
$U-9 billion.
Canada for 1955 is $26.2 billion
compared with $12 billion in 1946,

JL1
TT.iSd"strial development the Northwest
the

were

year

ing
efficiency, and the further pros-*
the early 30's there was a boom pect of
having next door to us,
in the gold mining industry, but as
friendly neighbors, possibly 50* creased to a point where new
essentially, the entire period was million
more
Americans
with housing starts were running about
one featured by companies putting steadily rising standards of
living 25% higher than in the same pe¬
their financial houses in order.
is an irresistible long-term bullish riod of 1953.

manufa'ctuHn? attLention

two

in

policy of governmental finance. In

a

economy

the

growth

dynamic

illustrated

and

of

Canada's Historical Development

five

3V2% to be¬

over

lem of recession and the threat of

growing

Canadian economy is possibly best

the

is

developing.

Canada

.

Quebec.

Canada's economy was her sound

be

mon

on

with

Bersimis

connection

at

the St.

on

„

prior to 1939 to illustrate the firm

ioundation

greatly-ex-

Falls,

teristing tomaTe Ume referen"; imp°rt fal™at h<?

to the economic

the

from

as

Niagara

nearly

•

proner

industries

resources

Lawrence

of

few words

scene

natural

bia, at

During the depression and the
recovery prior to the war in 1939,

most,'*, important

of

fell from

dollar, and
of almost eliminated.

demand

been at Kitimat in British Colum-

up,

During and immediately followappropriate
A^Iy examination of
World War II, strategic
the principal changes which hnvp "atural.resources were discovered
burredZ cfrZfs economy3 to
Canada which were the! keythe
postwar
period,
generally :to+n.e lo Sle new 5a of industrialspeaking, cover the years 1946 to-,,lz ion* ^
m
important were
1955, and to bring this period into
C1UttJu 1!°n £re 5nc* ,natural
the

on

growing

to

our

of

.a

Canada

the reasons behind the more rapid
pulp
and rate of increase in Canadian poppaper
industry,
the
intensive ulation than in the population of
growth
of
the
hydro-electric the United States. In the period
power industry, and an expansion
1946 to 1955, the United States'
development

vide facilities for the manufacture

suggest

perhaps

development in Canada,
period
featured the rapid

This

them

also

throughout

product.
The
present
population of Canada is approxithe production of armaments and
mately 15 million, an increase of
military supplies. An
intensive 3million, or almost 30% in the

early

principle holds equally well today,
but
the
window is
higher and
wider, and brings into focus the
whole

Columbia.

of

sections

panding manufacturing industries,
The principal developments have

saw

sound

served how

I

famous

which

to

ercised

isn

dustrial

yMiuch

ical

Sudbury
Basin, gold in the Klondike and
in the Porcupine District of Ontario, and lead and zinc in Brit-

are

yielding
to
people on their

a

Nickel

the

electric power

the

assault

in

natural

c

n

quered,

the

Provinces.

the initial stages of the development
of
Canada's
hydro-

a

riers,

G.

Prairie

discovered

climate, of

b

J.

the

was

other

and

the

well

as

.

opening up of the rich wheat lands

of

Government
money

finally, hydro-electric other, of course,
facilities have been greatly mium of 3 to 4%

satisfy
the

.

still
an unknown country; even
in the
crowded 20th century which may
yet become Canada's century of
ways,

many

in

discoveries,

increased

industries.
in

From the

And

power

Analyses Canada's for¬

eign trade and the situation with reference to Canada's leading

Canada,

In the

Quebec and in Northwestern On¬

in Canada, and stresses the importance of

U. S. private investments in

in

This

field, there have been

Peninsula

of the important economic trends of

some

the past two years

ore,

and' Ontario.

including low 2V2%, and long-term rates
new nickel mines in the Sudbury
from about 3%% to about 314%.'
Basin, Ontario, and at Lynn Lake, Undoubtedly there were two main
Manitoba;
lead,
silver
in
the factors prompting this change in
Yukon, and copper in the Gaspe money rates, one being the prob¬

1867,

II, due to discovery of strategic natural

metal

extensive

has taken place

progress

both

beginning of this period
1953, easy money as a policy
period has seen the development gradually dropped our threeof
one
of
the
world's
largest month treasury bill rate, which
deposits of ilmenite, the basic ore had been close to 2%, to below
of titanium, on the north
shore 1% in the first quarter of 1955.
base

Canadian investment banker recites the economic development

up

uranium

of the St. Lawrence River.

Stock Exchange

Chairman, The Toronto

of

Saskatchewan

.

but

still

.

with

running

United States of

over

$600 million

the first 9 months of

increase

in

been in the

with

the

exports

the

1955. Our

has

mainly

non-agricultural field,
major

gains

in

base

'of

63%

tured

goods,
were

68%

respectively.

total

was

factured

exports

In 1914,

were

raw

while

in 1952, only
materials, while

raw

partially
goods.

fully

or

As

manu¬

mentioned

I

earlier, in 1954, 16.4% of Canada's
G.

N.

P.

was

derived

from

the

export of goods and service which,
compared
with
31%
in
1926,

clearly indicates
nal

industrial

great inter¬

our

growth.

The

strength of the Canadian
dollar, which has prevailed since

exchange
on

restrictions,

were

lifted

October 1st, 1950, is one of the

best

indications

the

of

growth of the Canadian
Since
dian

February,

1952,

dollar has sold

sound

economy.

the

Cana¬

until recent-

Voiume 182

iy at

premium

a

the

over,

Number 5484

U.

S.

of

3%

dollar.

at the moment, this

The Commercial and Financial Chronicle

...

to

4%

source^ of

great satisfaction to
exporters who, for a
long time, have been severe¬

Canadian

very

ly penalized

in

trend

in

the

Canadian

dollar,

However,

without going into this too
deeply,
it is obvious that one of the
prin¬

cipal

reasons

been

the

for the strength has

flow

principally;

of

foreign capital,

from

the

United

States.

This flow of capital and
changes in both current and

other

capital account has enabled Can¬
ada

increase

to

its

holdings

of

gold and U. S. dollars from
low

war

the

a post¬
million at

point of $501

end

1947

of

to

nearly $2 bil¬
lion at the end of 1951, with the
figure only slightly lower at this
date.
In 1955, however, the net
•inflow of capital •• has
been re¬
versed, largely due to unattractive

yields, and this, coupled with the
continuing adverse trade balance,

;

has eliminated the vexatious
pre¬
mium.

Capital

BRANCHES

OFFICERS, ETC.

Frederick

Expansion

out

that

of

!

the

practically
Canadian

participated
pansion.

'grown
Of

r

in

all

branches

have

economy

the

Certain

post-war

industries

ex¬

have

much faster than others,

the

! vested

private

in

capital

new

Livingston,
were

in-

Canada

1946-1955

14%

into agriculture

-and

While

j1

and fishing,

15% into public utilities,

is being

in

on

pended

Canada

housing

'

since

1946

branch

than

of

in

ex¬

other

any

industry,

nothing has
^contributed more to Canada's expanding economy than the dis¬
"

and

covery

ment

of

subsequent

develop¬

crude

enormous

oil

re¬

sources in the Western provinces,
which has occurred since the Leduc

discovery in Alberta in Feb¬

ruary, 1947.
oil reserves

^

72 million

Since that date, crude
have

increased

from

barrels to 2,400,000,000

barrels,

or over 3,200%. Crude oil
production in the same period has
increased from 20,000 barrels per

•

day

to

present rate

a

of 400,000

barrels per dav. Domestic oil con-

sumption has increased from 233,-

,

000

•

barrels

1 double

per

ciay

over

to

500,000 barrels

day.
Alberta has the largest developed

i

oil

—

in

made

Manitoba.
sible

It

that

least

have

would

Canada

also
and

appear

develop at

can

barrels

of

figure,

oil

formations favorable to oil

as

in

the United States. Natural gas re¬

already

serves

would
tion

are

known to be at

14 trillion cubic

least

feet, and it
likely that a solu¬

appear

to

of this

the

distribution

commodity

may

problems

be

on

the

cards in the not-too-distant future.

This

solution,

through

the

con¬

struction of natural gas pipe lines
natural

make

to

all

gas

parts of Canada

'and

east

—

available to
—

both west

could involve the

ex-

'port of substantial quantities both
on

the west coast and into Minne¬

two

proposals

mitted

at

now

being

sub¬

Washington. Natural
of basic power,

a new source

available

developed hydro

the next 5

new

shares

for

number

share

of

While

Mr.

Assistant Treasurers,

as

consolidation

Flaherty, of the Banking De-

in

sonal

Pension

the

Trust

Department

*

Per-

and

and

The

the

.

in

sistant

1948.

and

Sime

who has

since

ip

has

Department,

1950.

with the Banking

Operations Di-

,

vision.

He

became

Treasurer in 1942 and

ingston,

Branch

Assistant

Mr.

Liv-

Research

and

1945.

the

of

Methods

in

an

Division, Controller's Decompany in
elected

was

Assistant

an

the

after

beautificatiori

planned

v^pSpr^«iH^n?4in^oi?n
ASS1Stant totalin§
m°re thaP $540,000. The
Vice-President
194o.
parent bank was founded in 1895
in

Clarkson,

of

Branch

sistant

in
1951; • Mr.
Banking Depart¬
ment's Operations Division, joined

be

$1 830 600*
National Bank of
with

common

form the present
bank. Reference to this appeared
in our °ct- 20 *ssue> Pa2e I'CfML
upon completion of the financing?
bhe bank will, it is stated, have
total caPital funds , of $1,716,000
and total resources of in excess o£
were merged to

$24,000,000.

*

$100 000 and thc Bank of
Brook

with

$412,500,

it

Haven,

stock

common

be

may

of

here

noted

consolidation

the

Port'

at

ef-

was

*

*

It was made known on Nov. 21,
according to Associated Press ac—

counts

Washington,

from

the

of

Trust

Operating

and

This is not an-

Gidney has barred, further
by two banks in Nassau

M.

merger

Comptroller of the Currency bethe Security National Bank
of Huntington on Nov. 4.
The
Treasury Department announces.
that ot the effective date of the
consolidation
the
consolidated
bank had a capital of $2,319,430,
divided
into
231,943
shares of
common stock, par $10 each; sur-

plus ;'6f $3,126,520 and undivided
profits of not less than $1,320,000.
r

*

.

Blair

&

writers,

*

Co.

Inc.,

shares of $10 par

tal

stock

of

the

under-

as

that

625

the

formed

MeadQwbropk:

became
in

urer

the

Assistant

an,

1947;

Rank

of

County, and the Security

Nassau

National

of

Bank

Huntington,

i;

n. Y., in Suffolk County, that he

the

14,value capi-

state

Bank

time

the

further

future,

banks

smaller

of

them."

_

^

bank's

Public

said

he

Long Island,

had

nothing in principle

Continued

bank's stock-

on

Offering Circular. The offer of these Shares is made only by means of the Offering

Circular, which should be read prior to any purchase of these Shares.

128,597 Shares

of

De¬

'■

partment, joined the company in
1947 and

was

elected

in

Treasurer

formerly

1951;

Mr.
Flynn,
operations
Offices, has
the Banking

1

S*

Western

Assistant.

an

-

of

manager

been

reassigned

to
head office

Department's

ing

Common Stock
-

company

Banking Department's Operations*
Division,
while
Mr.
Woytisek,
with

the

Research

Division

the

of

partment,

Methods

and

Controller's

his

began

De¬

with

career

Bankers Trust Company

.

*

(No Par Value)

%

operat¬

Mr. Patey joined the
in 1932 and is with the

staff;

l;"

Maryland Railway Company

the bank's Queens

in

in 1941.

•

Rights, evidenced by subscription warrants, to subscribe for these shares
by the Company to the holders of its

of Common Stock have been issued

First

7% Cumulative Preferred Stock, its Second 4% Non-Cumulative

Preferred Stock and its Common Stock, which rights will expire at 3:30

P.M., Eastern Standard Time, on December 7, 1955. The Baltimore and
Ohio Railroad Company has agreed with the Company that it will sub¬
scribe for 55,696 shares of Common Stock. The Underwriters have agreed
to

purchase

any

of the remaining 72,901 shares not subscribed for by
warrant holders.

The

appointment

Thompson

as

Franklin

of

Assistant Secre¬

an

tary of Manufacturers Trust Com¬
pany of New York was announced
Nov.

17

the Personal

the

in

bank

Subscription Price $41

by Horace C. Flanigan,
Mr. Thompson joined

President.

Loan

career

was

The several Underwriters may offer shares of

interrupted for four years during

less than the

which

to

he

served

Share

Department of
His

1935.

a

with

the

United

Common Stock at prices not

Subscription Price set forth above (less, in the case of sales

dealers, the concession allowed to dealersi and not more than either

New York Stock Exchange,

States Navy

the last sale

Upcn

whichever is greater, plus an amount equal to the
Slock Exchange commission.

during World War II.
discharge he entered the

bank's Credit Department

and

program,

was

sistant Manager in
ent

Mr.

Thompson

the Central

the

bank's

training
appointed As¬

or

current offering price on the

applicable New York

1953. At pres¬
is assigned to

Credit Department in
main

office, 55 Broad
Street, New York.
V

V

Copies of the Offering Circular are obtainable from only such of the
us

may

The

election

Sheaff

as

a

of

undersigned

legally offer these 8 ha res in compliance with the
securities laws of the respective States.

n

L'Huillier

Trustee

of

S.

Empire

City Savings Bank of 2 Park Ave.,
York,
was
announced
on

industry in the past nine
has amounted to more than
on

page




46

its

Board

*

meeting

ALEX. BROWN & SONS

of

it

be

THE FIRST BOSTON CORPORATION

HARRIMAN RIPLEY & CO.
Incorporated

DICK & MERLE-SMITH

FRANCIS I. duPONT &CO.

W. E. HUTTON & CO.

*

on

Nov.

Trustees

of

15, the

recommended

CARL M. LOEB, RHOADES & CO.

Kings

County Trust Company of Brook¬
lyn, N. Y., adopted a proposition
that

Continued

CO.

17

*

At

oil

■years

MORGAN STANLEY &

New

Nov.

to

stockholders for action at the

the
an-

November 23, 1955,

R.

by

:

Treas-.

Relations

ac-

In a recent speech Mr. Gidney

o£

t

in

quisitions

Custo¬

McDougal,

Mr.

Na-

Freeport, N. Y.»
the Franklin
National Bank of
Franklin Square, N. Y., both int
tional

v/ill net approve now, or for some

*

announce

given in the New York "Times"
of Nov. 22 the press advices statect
in part:
'
"Mr. Gidney said he- has in-

dian Divisions of the bank in 1935.
He

that

Comptroller of the Currency, Ray

Treasurer

Fiske,
the

Hunt-

of

stock

as

Supervision, Banking Department,
joined the bank in 1950 as a senior
credit analyst. He became an As¬

Long Island

Bank

the Eastern District Savings Suffolk at Suffolk,
Bank and has always been located. N. Y. offered to the

Loan

to

came

by the city for
that area of the borough. According to Mr. Schneider, 9,684 savjngs accounts were opened during
the 2-day opening celebration of
the branch
office with
deposits

project

partment, joined the
1930. He

an-

was

ori

Bank of Huntington, the name of. County and another in Suffolk:
which, with the approval of the County, Long Island, N. Y« As

will be called the Marine Park

Assistant

an

it

1984

fected
under
the
charter
and
title of the First Suffolk National

Nov. 17

Woodhaven, has been appointed
manager. The one story, granite
fr0nt structure, was designed by
Halsey, McCormack & Helmer,
specialists in bank architecture,

the

worked

currently

most

U,

Bay

Jefferson

that

by Adam Schneider,
President. James L. Compton, of

various divisions of the Bank-

ing

*

on

in

page

in'

Moriches

Northern

60-year old Roosevelt Savof Brooklyn, N. Y.,

2956. Avenue

South

stodrof

was

nourtced

an

been with

1922

*

opened its first branch

As-

an

in«1948

Vice-President

company

in

became

He

Treasurer

The stock

ings 'Bank

Personal Department of the bank
before joining his present department

share.

common

Center

split 2Vz shares to 1 and a 300%
stock dividend was declared.

partment's
Operations
Division,
joined Bankers Trust in 1933. He
served

the

1954. At that time par value
per

made

effective November 4 of the First

reduced from $100 per share

$40

to

was

issue of Nov. 10

ington,

Woytisek

•

reference

National

18.

salary funds
to all em- name

our

Kings
County
Trust
Company
split its stock once before in Janwas

will

cf the

£ke

Suffolk

uary

5%

*

-

so

stock divi-

10%

a

expired

Proceeds of the issue
used to increase capital

of the' bank. The present
of State Bank of Suffolk,
was
adopted on Sept. 30, 1955,
when the South Side Bank of Bay
Shore and The Bank of Amityville at Amityville, Long Island,

equal to

bonus will be paid on Dec.
14 to those employed on Dec. 5.

now

Nov.

of

subscription. rights

of

The

increased

each

Bank

held

for each.
1. The

share

new

one

shares

bonus

held, and that

power

years.

The total capital expenditure of

the

the

and

shares

four

the

re-

that stockholders will receive two

made

by Charles Diehl, Presi¬
supplementing hydro-e 1 e c t r i c,
dent.
Mr.
Sheaff
is
Executive
power, cannot arrive too soon for
Vice-President and a Director of
Ontario, as it is quite possible that
Cushman & Wakefield, Inc.
growing
demand
will
outrun
in

authorized

of

the

value to $20

par

basis of

*
directors

if approval is granted by the

Federal Power Commission to the

gas,

Colt

Mr.

value,

par

$40

capital

Nov.

dend be declared and distributed.

v

sota

was

promotions to Assistant
Clarkson,
John W. Fiske, Jr., and Edward F.
McDougal; and the official appointments of Harold J. Flynn,
Andrew
Patey
and
Walter
J.

re¬

prove

race

it

S.

from

the

Brooklyn, New York, has authorized the payment of a Christmas

Vice-President of Lloyd

on

productive at the same

duced

pos¬

possibly
a
much
if the geological

and

serves,

im¬

but

Saskatchewan

billion

10

higher

Canada,

discoveries

portant

Ibeen
v

in

reserves

per

held on Jan. 16 next, that
authorized capital stock be

,*

paid during the year,
ployees and ofiicers of the bank,

be

stock of the bank
were
offered rights to subscribe
for these additional shares on the
of

Roosevelt,
shortly before.

of

share have all
The holders

per

been subscribed for.

Theodore

board

known the

Mr.

more money

of

died

Lafayette .National

to

Thomas E.
position

by

Simultaneously,

meeting

Bankers

Sloan Colt,
the bank, on Nov. 21.

President of

stockholders

at

Trust Company, New York,

announced

nual

to the

and

elected

Vice-President

Vice-President

during the pe¬
totalling in excess
of $30 billion, 29% has
gone into
housing, 22% into manufacturing,

riod

Flaherty, W. Put-

Sime
of

Mr.

reviewing Canada's growth
industries, it should be pointed

D.

nam

In

1

The

CAPITALIZATIONS

Assistant

Investment

Bankers

and

it

would be necessary to study care¬
fully the Canadian balance of in¬
ternational
payments.
•

NEW
NEW

for the

reasons

honor

Broadway," holders at $34

name was

*

REVISED

foreign markets.

To understand the

in

who had

CONSOLIDATIONS

and

changed
Savings Bank-in 1922

to Roosevelt

News About Banks

of history, with virtual
having been achieved, a

parity

Avenue

Brooklyn. The

matter

a

Gates

at

However,

appears to be'

15

(2199)

W. PRESSPRICH & CO.

page

1&

16

The Commercial and Financial Chronicle

(2200)

credit

immediate future, could be an

split hope in this
and it " was able to
along easily in a trad¬
ing range only slightly below
its best price of the year.

THE MARKET... AND YOU
By WALLACE

Steel is the

group
stride

STREETE

if

if

The stock market blew both
hot and cold in the

shortened
doubt

whether

serious
for

week,

there

intention

is

any

Whirl in "Stock of the Month"

Oils had

quite a few betterspots for a change.
Dutch, about which

holiday- acting
leaving in Royal
talk of

stock dividend

a

if

Otis Elevator
occasional
to

cen¬

of

striving tered, was prominent without
a
new
all-time peak for yet working into position to
industrials any time soon. do
serious
joust
with its

the issues

month."

of

the "stock of the

as

The

been

has

issue

the placid ones recent¬
if
if
if
ly and, in fact, for the full
year's best price. Phillips Pete
year has yet to swing in an
After
having reached to was another given to multi¬
arc
running as much as 15
within seven cents of the
pre¬ point spurts to help brighten
points.
vious high a week
ago, the the division. Continental Oil,
industrial
Rail Hopes
average backed up however, was quite obviously
to carve out a
trading range depressed by dividend action
Occasional strength in the
of some
10
points. It was that didn't come up to expec¬ rail section was
largely based
somewhat
misleading, how¬ tations and it was occasion¬ on hopes for future dividend
ever, since a good share of the ally
prominent among the action since the
meetings held
setback in the
V. i
average was casualties.
so far haven't been
especially
due to the erratic action of
if
if
if
noteworthy for any great
duPont after directors voted
Cutler-IIammer was an¬
liberality. However, the
a
yearend dividend, but took other dividend-disappoint¬
better-than-average yield in
no
notice of the
high Street ment issue and it reacted a bit this section justifies occa¬
expectations for a fat stock
sharply after having posted a sional attention from the
split running on the order of new
high bright and early in traders. Traffic is expected to
5-for-l. The initial reaction
the week.
Visking followed show an increase of some¬
was
a
loss that reached 10 the
same pattern with some of
thing like 8% over last year
points in a couple of hours its losses
running to a hand¬ but, because of high fixed
with a lukewarm rebound in
ful of points.
charges, there is far more
subsequent sessions.
leverage on the earnings and
if
Two Zooming Split
if
if
they could gain 25%
this
Candidates
Technical considerations
year, according to some esti¬
were
Chrysler showed the best mates. The section has been
mostly on the construc¬
tive side. Volume dwindled on price tone in the automotive
laggard for a long while and
selling but expanded on the section, largely because it is when the industrials worked
the

rebound

with

the

mant oils and rails

along

with

the

long-dor¬
prominent

usual

blue

still

a

tual

candidate for

split

an

even¬

though hopes

even

for such action at the last di¬

pennies of the

vious

high

some

three

to earnings.
opposition had
in the Diamond

cropped

up

T-White

Motor

merger

for

pre¬

a

thirds of the shares

need¬

are

ed for approval is
handicap.

The

time

firm

the

it

revealed

has

the

fast-growing
only recently cata-

company,

if

if

if

kept

logic oc¬
casionally centers on Sperrywhich

Rand

the

popular

is

available

priced

bracket

International

while

in

Business

definitely among
the more costly of the issues
around. Sperry has an added
benefit for the long pull since

Volume Leaders

General Motors'

new

split
high ac¬
tivity although it occasionally
yielded the top spot in the
stock

continued

most-active

roster

with

the

sustained

The

numerous

favorites

and

ranged
Copper to

Inspiration
nolds

been,,able

*

*

metal

Metals

and

competition coming
from Panhandle Oil occasion, U. S. Steel

mostly

about which the

rumor

mills

busy. ^

were

*

in

to

appear

gains

for

among
a

day.

to

put

even,
was

on

able

cess

this week.

been

e r

t a

$300,000 6% Convertible Debentures

issues in

as

conviction,

with

$100 principal amount of Debentures
Common Stock, at $100
per unit

15 shares of

Northeast Metals
Industries, Inc. is engaged primarily in the busi¬
ness
of
fabricating a variety of nWal products, including metal
cabinets for electronic
equipment, flight instrument cases, storage
tanks, cabinets for various
components of the Univac, and a
variety
of other metal
products. I»s office and plant are located at 1206
Norlh Front
Street,

Philadelphia, Pennsylvania.

to

do

the

The

electronic

Zenith

drab

Radio

-

occasionally

(spurting to provide virtually
the only feature in the group.
General Electric's hiked divi¬

be obtained from
any dealer author¬
business in this State, or
from the undersigned.
mar

dend

buoyed

there

was

stock

the

STREET

Telephone WHitehall
Please

.send

Industries,

me

a

copy

Inc.

of

the

4-7351

Offering

NEW

YORK

Teletype
Circular

Inc.
NY

relating

to

4,

N.

Y.

1-2402

Northeast

NAME.

f?5f
W'%
:€t;
w #
V

A

<

ADDRESS
——

STATE

yp

the

Mohawk
Smith

over

SAN

FRANCISCO,

Rudolph T. Sandell
a

Agnew

York

&

Co.,

and

San

Exchanges.
ager

of

Mr.

the

Calif.—
■

Dec. 1 will

in

Shuman,

155

Sansome

of

members

Street,

on

partner

the

New

Francisco

Sandell

firm's

Stock

is Man¬

trading

and

municipal departments.

Craig-Hallum Adds

O'Brien,

Jr, is

all

of

case

far

gone

three

enough."

The Comptroller's office super¬
the
activities
of
National

vises

banks—those chartered

under

of

authority

Congress.

It has

no

State-chartered

over

act

banks.

Mr. Gidney said "the ruling did
mean
that the Comptroller's

not

is

office
bank

going

to

in

mergers

turn

against

general

across

the nation."
*

if

The issuance

if

and sale

of

10,000

shares of stock of the Long Island
Trust

Company

Garden

of

City,
Long Island, N. Y. at $40 per share
and the issuance of an additional

2,000 shares
dend

ing,

2%

a

as

stock

divi¬

100,000 shares outstand¬

on

approved at

meeting
it has
by Fred Hainfeld, Jr., President. The new issue
will be offered for subscription on
or
before Dec. 7, to stockholders
was

of stockholders
been

on

a

Nov. 21,

announced

Nov.

the close

at

for

2%

of

business

on

the

basis of

each

ten

shares

10,

stock

1,

at

one

held.

will

dividend

be

the

of

rate

one

on

new

quarterly dividend

of 25
share will be paid in
3, 1956 to stock¬

per

Jan.

on

of

new

stock

page

1984.

record

issue

Dec.

on

1.

The

will

£

sjc

'

now

—

William J.

with

Craig-

National Bank of Rye,
N. Y., announced on Nov. 17 thai;
the plan for increasing its capital
from
366,100
shares to 418,400
shares

which

(Special to The Financial Chronicle)

Springmire is

King Merritt &

WINONA, Minn.
now

—

connected with

approved

at

it is indicated now exceed

000.

It

is

the

added

all

the

this

that

funds

improvements

bank

$1,700,action

required

which

are

nearly completed in both the main

banking premises in

Earl G. Cits

Co., Inc.

bqen

the stockholders

and undivided profits of the

for

With King Merritt

had

a special
meeting Sept. 22, had been com¬
pleted and final approval received
from the Comptroller of the Cur¬
rency.
It is stated that the issu¬
ance of the 52,300 shares of new
stock was entirely subscribed for
by the stockholders without any
underwriting. The increase brings
the total capital stock to $836,800
of $2 par value. Capital, surplus

by

provided

benefits is

$30,000,000 tax

in

have

sfe

pending merger in the carpet
field. One of tl?e
very obvious
a

that

The Rye

Building.

Alexander

Franklin

Mr.

Rudolph T. Sandell

Hallum, Inc., First National Bank

-

the

Bank

bring the
total capital and surplus of Long
Island Trust Company to $2,500,000. It is estimated that capital,
surplus,
undivided
and
profits
valuation reserves by Dec. 31, will
total
approximately
$3,300,000.
Reference to the foregoing plans
was
made in our Nov. 10 issue,

of

culating

Central

of

case

Bank,

mergers

holders

ST. PAUL, Minn.

analysis and pro-forma cal¬

the

Gidney said
his ruling would prevent merger
with the following banks: Valley

regular

The merger scene was rath¬
er
subdued with quite a bit

Carpet

CITY




Metals

if

the

Dec;

■/

(Special to The Financial Chronicle)
*

In

National

The

but

nothing excessive

if

ftearsntt, iKurpbu &
BROAD

?

blame

mostly,

and

Company, Great Neck.

Trust

cash

some

television

one

Malverne,
and

cents

oc¬

about it.

50

•

become

group was a

Cove

Company,

share for each 50 shares held. The
*

good

>

Glen

paid to stockholders of record

Be Shuman Partner

to

*

Trust

share

Rudolph Sandell to

,at

liquidation of the
by the Dumaine-Amoskeag interests. These inter¬
ests have already confirmed
plans to sell out large hold¬
ings of the preferred stock.

The

Union

of record

issues

*

ized

c

was

casionally laggard with
laid

45,000 Shares Common Stock

Offering Circular

t i

banks:

Nassau

on

the better times, but when strength was
general in the rails, it was
Bethlehem
able to join Southern Rail and

NORTHEAST METALS INDUSTRIES, INC.

Units of

those of the author only.]

Santa Fe has

somewhat

demand. New Haven

and

as

were

Rock Island

Offered in

some

on

spirited shows, including run-,
ups of as much as half a dozen
from
points at a time. It fprged into
Rey¬ new
high territory in the pro¬

lowing

the stock has been somewhat

the rails were depressed recently
on
the
points short of premise that volume this year

Ward which
Among the split candidates provement in the future.
fully indicated that hopes
in the carrier section Union
|TJie views expressed in this
were
high with some good
article do not necessarily at any
Pacific
% o o m s importantly
gains when the going was
time coincide with those of the
and, as a result, the stock has "Chronicle."
They are presented
good.

GM and Panhandle Oil

prevent a proposed
that bank with the fol¬

Glen Cove; the Bank of Malverne,

Machines is

traders Montgomery

cautious.

would

think

Somewhat similar

on

layoff

He [Mr. Gidney] said his ruling
the case of the Meadowbrnok

banks, it has been merging rap¬
idly with smaller banks, "and we

ratio.

Overall

holiday

we

paulted into the ranks of the
Stream National Bank and Trust
giants by merger, was a par¬ Company, Valley Stream, L.
I.,
ticular
pet of the
market and Fort Neck National Bank,
letters since most of the larg¬ Seaford, L. I.
Mr. Gidney said the Hunting¬
er chemical companies in the
ton
bank
did
not
at
this time
premier growth industry al¬ have
before
the
Comptroller's
ready have reached levels office any merger proposals, but
where their profits are being that he was applying his ruling
capitalized at a rather high to it because, like the other two

optimistic moments. rectors' meeting was some¬
any serious challenge of the will be off because of a series
activity was far from what premature. Another peak.
of strikes, giving it that much
impressive and the impending favorite split
candidate is
if
if
if
more
chance
to
show
im¬

chips

account

-same

quote:

its

run

But this

course.

the

merger of

entering

field

competition.

From

bank

was

was

aluminum

banking

in

play in Olin Mathieson

the

against bank mergers so long as
they did not do harm to effective

added

an

New Market Pet

at

And Bankers

over

the sale of assets of $12,000,-

among

to within

15

page

News About Banks

hblp

important

price of less than
given an
partly due $9,000,000. The fact that two-

selection

service's

one

which, at least for the Continued from

Some definite!

000

was

whirl,

Thursday, November 24,1955

...

Harrison

office

Rye and

and

in

has

strengthened the financial struc¬
ture

of the bank.

Volume

182

Number 5484

.

.

.

The Commercial and Financial Chronicle

Prices: Is Inflation Dead?

general commodity price structure,

warns

is

some of them to compen¬
for
this
and
next
year's

against

This is bound to give the indus¬

ing inflation is dead! Holds basic correlation between business

trial

price structure

ability

ance

of

activity and the commodity price level rests largely
to prevent

on

of them

some

to contribute to further expansion
costs.

assum¬

for

future economic recessions.

the

appear¬

greater strength, at least

while.

a

As

this

trend

prob¬

Bureau of La¬

early part of 1956, the commodity
price level will trend moderately
ness recessions from going beyond higher.
the scope of the first two postwar
Whether such a trend will de¬
inventory recessions in 1948, 1949 serve the designation "inflation¬

bor

and 1953.

that

is

widespread belief

a

inflation

longer a
thr.ea t. The
no

Statistics

wholesale

price

index

stands

now

almost

Conversely,
ministration's

at

much
intent

are

that

during

the

ary" is largely a matter of defini¬
Ad¬ tion. Rising or falling prices do
prevent not necessarily denote inflation or

the

of
to

future boom and bust patterns de¬

deflation.

However,

associated

in

they

are

so

minds of the
pends on its ability to maintain
a
reasonably stable price level. public. 1
as
in
the
There
is
a
distinction
between
How are its prospects in this re¬
spring cf 1952.
spect, both short-range and long- price increases caused by tem¬
This
porary maladjustments in the sup¬
past
range?
ply and demand of a commodity
summer, as a
As far as the short-range com¬
and increases in the general price
fresh round
modity price outlook is concerned
level caused by monetary factors,
of
wage
in—let us say for the next year—
Heinz E. Luedicke
be it a deliberate deficit policy or
creases got
it is coupled closely to the general
under
encouragement of rapid expansion
way,
level of business activity and to
in private indebtedness. Inflation
there was considerable belief that
the future relationship of wage
in this sense has at least a strong
a
fresh
inflationary
price rise increases to
productivity gains.
connotation of a progressive de¬
might be at hand, but this fear
It would take a slowdown in
dwindled
as
the
price index the international armament boom cline in the purchasing power of
the
leveled out after a short and lim¬
dollar, if not an outright
or a complete reversal in the do¬
threat to government credit and
ited upswing.
mestic
trend
toward
inventory
a flight from
currency into goods,
Nevertheless, it would be pre¬
bring about
the

exactly

same

mature to assume that inflation is

While it is true that, short

"dead."
of
is

another large-scale

danger of

no

able

there
explosive out¬

an

inflation

break cf

war,

the foresee¬

in

to

a

a

lem.

real long-range prob¬
of fact, it has

very

As

matter

a

really ceased to be with us
the recent years of

never

cuiing

even

price stability.

Contrary

price

of the great Euro¬

structure.

picture.

particularly if industry
This does not mean, however,
goes through with its current ex¬
that at least this type of infla¬
pansion plans for 1956. Such ex¬ tion can be considered as dead as
pansion plans chew up a lot of a

long-range factor in this coun¬
other metals. Thus the
try. "Inflation" in this broader
supply and demand picture
sense, may be caused either by the
is likely to get worse before it
unrestricted
play
of
economic
gets better, unless there is a sud¬ forces or a deliberate economic

view,

general

the

to

price

den realization that we have been

of inflation in

wise,

large amount

a

Other¬

system.

our

would have reacted
sharply in those

prices

downward

more

fields where early postwar short¬

in both supplies and produc¬
were overcome. Only

ages

tive facilities

there been a
sharp downward adjustment in
prices to supplies and this, de¬
spite the determined Government
efforts to support farm prices.
agriculture

has

Two historical rules of

havior

to

seem

have

board during the

There

(1)

in

cave-in

has

price be¬

gone

by the

postwar period:
been

no

sharp

the

price structure as
occurred roughly within ten years
the

after

end

of

each

major

war

in the past.

(2) The long decline in farm
prices—25% since 1951—has not
led to a general price decline as
in the past.

Each

to

a

war,

the past,
higher

in

permanently

price level—although usually not
without a period of rather violent
fluctuations, during which prices
were adjusted to new supply and

demand, as well as cost relation¬
ships.
These adjustments were tied to
the general postwar business pat¬
terns

specifically to the tradi¬

or

tional postwar business recessions.
The price stability after World

and the Korean

War II

War

was

primarily to the fact that
activity stubbornly re¬
the traditional

business

fused to live up to

pattern. There was no
recession, due partly to
economic and partly to artificial
postwar

postwar

political forces. The same com¬

bination cf economic and political
forces

that

prevented a postwar
about the rela¬

recession brought

postwar stability in the com¬
modity price level.
It
is
important to recognize,
tive

that the basic correla¬
tion between business activity and
however,

National

ahead

fast for

too

our

good.

own

conditions in most economic sec¬

likely to

occur very

as

currency as the result of an
expanding system of insurance,
savings, pensions and social se¬
curity, the balance of political

by Dr. Luedicke before the
Industrial
Conference
Board,

Philadelphia, Pa.,

tors.

Nevertheless, inflation as a
long-term issue is not dead al¬
though it probably could be re¬
vived only as a matter of over-all
economic policy and not as the
spontaneous and undesired result

could be thrown away from

the

current

overheated

for,

higher

money

pressure

and

wages

of economic

will

It

probably would take some
costly lessons,
however, before
such ideas would be accepted by
organized labor. Right now, labor
leaders are riding high because
the
1955
recovery
was
carried
along by a particularly rapid ad¬
vance in consumer spending, even
though much of the increase was
debt-financed.

They

icies

the belief that prosperity

be maintained

as

sumer's share

in the

long

the

as

Once
tion

re¬

H. Marcoux is

Raymond

—

with Investors

now

Planning
Corporation
of
New
England, Inc., 68 Devonshire St.

can

in¬

With Dean Witter Co.
declared

been

has

Ad¬

their

(Special to The Financial Chronicle)

BOSTON, MASS.

policy of moderate infla¬

a

Washington

specifically

determination ,to

With Investors Planning

con¬

national

the economic pol¬

future

of

Hence much

forces.
on

strain future booms.

is rising.

come

of

degree

in this
the vindication of their purchas¬
ing power theory which is based
on

depend

ministrations,

see

liberate policy

of

(Special to The Financial Chronicle)

de¬

the

LOS

future Ad¬

any

that sufficient

tools

be made

can

available to carry it out.

ANGELES, CALIF.—Gor¬
Ludwig is now connected

don R.

ministration, there is little doubt

with

Dean

South

Spring Street.

A com¬

Witter

&

Co.,

632

bination of wage boosts going be¬

productivity

yond

deliberate

icits

the

could

face

of

the

do

of

trick,

and

Joins Walter

a

SAN

will play

could

be

carried

on

with

CALIF.

has

Walter

—

become

C.

Gorey

Co., Russ Building. He was for¬
merly with General American &

portant role under such a policy
which

Senderman

associated

im¬

an

FRANCISCO,

Aaron

further
Psychol¬

advances.

course,

Gorey Co.

(Special to The Financial Chronicle)

in

even

prospective

technological
ogy,

gains

policy of Federal def¬

policy.

This is

Canadian

Securities,

Inc.

and

Schwabacher & Co.

suc¬

offering of these Shares for sale, or an offer to buy, or a solicitation of an
buy, any of such Shares. The offering is made only by the Prospectus.

not an

offer

to

In

this country, with its
productive capacity, it
get started only as a de¬

fantastic
could

400,000 Shares

This test will be

closely tied to liberate economic policy.
future wage trends. There is rea¬
Our
economic
policy, as laid
son to believe that this year wage
down in the Employment Act of
increases
in
industry generally 1946, has a two-fold aim: full em¬
exceeded
average
productivity ployment, and the preservation of
gains. This fact has been over¬ the purchasing power of the dol¬
shadowed by the high level of lar. To facilitate this latter aim,
profits from which it has been both political parties have long
concluded that industry can well made a balanced budget one of
absorb still higher wages without their economic goals.
It is difficult to see how, as a
increasing its prices.
This

attitude

is

fallacious

The

(1)

industrial

complete

Kimberly-Clark Corporation
Common Stock
($5 Par Value)

proposition, full em¬
ployment, stable prices and a bal¬
anced budget can be achieved at

for long-range

several reasons:

the

and

one

same

time.

You

Price $46,375 per

Nov.

15,

1955.




share

can

picture is not nearly as have
any two of these aims at the
strong as the record profits shown
same
time, but not all three of
by the country's biggest and fi¬ them.
nancially strongest companies in¬

profits

(2)

A large number of the me¬
and smaller companies in

of

the

ever

may

by wage boosts

further
the
growing unemployment.
As
further
mechanization
gets
more and more costly, particular¬
ly where it qualifies as "automa¬
tion," this trend looms as a very
real danger to the maintenance
of
adequate profits for smaller
strengthen
and

the

at

Big

Business

same

time

carry

threat of

businesses.

upward

prices

is

little

pressure

will

doubt
on

increase

that

the

industrial
next

year.

of the several under¬

Blyth & Co., Inc.

can

be maintained under such

circumstances

unless

there

is

a

The First Boston

Kuhn, Loeb & Co.

Corporation

IJarriman Ripley & Co.

Goldman, Sachs & Co.

Glore, Forgan & Co.

Incorporated

Merrill Lynch, Pierce, Fenner & Beane

Kidder, Peabody & Co.

Stone & Webster Securities Corporation

Smith, Barney & Co.

mately "kill the goose
the golden eggs."

tion

any

get and

must ulti¬ almost full employment and some
that lays rather critical materials scarcities,
notably in the metals, seem to be
unable
to
impart anything like
If wage boosts for any length
sustained strength to the general
of time exceed productivity gains,
one
of two things must happen: price level.
That brings up the question of
either prices are being raised to
what will happen once the labor
protect industry's profit margins
situation becomes easier due to
or a growing number of marginal
greater increases in the labor sup¬
manufacturers
are
being forced
ply. There are serious doubts that
into the red and finally out of
full employment and full produc¬
business
which
would
tend
to
gains

be obtained from

three

objectives as we'll
probably even this
industries already are being degree of success cannot be ex¬
severely squeezed by rising costs pected to be
permanent. We have
and their inability to raise prices
nearly full employment; reason¬
because of prevailing competitive able
price stability and an almost
conditions in their fields.
balanced budget.
It must
be realized, however,
(3)
Any attempt to preempt
current and
future productivity that even now the combination of
dium

Copies of the Prospectus

writers only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

Actually, we probably are cur¬
rently as close to full realization

dicate.

There
talk

the

But

many

major

led

immediate

while

up,

are

strengthening in

and

steel

jumping

*A

case

pean post-war inflations.
That is
Under this broader definition,
Actually, the
price increases that may occur
the possibility of further tighten¬
next year will hardly qualify as
ing of metal supplies cannot be inflation.

metals

not now in the

level since 1952 attests to the fact

or

the

genuine relaxation in the current

that there still is

due

in

sum

prospects

total

the steadiness of the over-all

has

as

futipre, the issue remains with ignored,

us as

in

the

level

accumulation

To

labor gains a greater
vested interest in the stability of

That is not
soon.

shorter hours.

chances

cessfully only as long as the public
is willing to go along with it.'
only for a moderate
the commodity
price level, even such a move
probably will prove short-lived
because of existing
competitive

the

contributed to

commodity price level prob¬
ably still exists. Thus the future
stability of the price level rests
largely on the ability of the Gov¬
ernment to prevent future busi¬

price level

the majority

of the voters clearly put a stable

power

the

over-all

inevitable unless

ably will be accompanied by some
improvement in the farm price
structure, also at least for a while,

stability in the
general commodity price structure
during the past 3 Ms years has

The

slow-term rise in the

increases; some of price level ahead of full employ¬
more satisfactory
ment.

profit margins; and

>

Luedicke, though stressing the current over-all stability

in the

a

prices;

rounds of wage
them to restore

Editor, New York "Journal of Commerce"

Dr.

More companies will seek higher
sate

By HEINZ LUEDICKE*

17

(2201)

Union Securities

Dean Witter&Co.

Wertheim&Co.

White, Weld & Co.

Corporation
A. G. Becker & Co.

Central Republic Company

Incorporated

Clark, Dodge & Co.

Dominick & Dominick

Hornblower & Weeks

Hemphill, No'yes & Co.
Lee

F. S. Moseley & Co.

Iligginson Corporation

A. C. Allyn and

Paine, Webber, Jackson & Curtis

*

Incorporated

Robert W. Baird & Co.,
Incorporated

Reynolds & Co.

Company

Hallgarten & Co.
W. E. Button & Co.

American Securities Corporation

Company

The Milwaukee

(Incorporated)

Drexel & Co.

Shields & Company

Incorporated

Walston & Co.

First of

Michigan Corporation

McCormick & Co.

gradually

rising price level to
facilitate
rising wage payments
without impairing industry's abil¬
ity to carry on future expansion.
This would result in

a

choice

be¬

tween

William R. Staats & Co.

McDonald & Company

Mackall & Coe

Pacific Northwest Company

of

The Robinson-Humphrey

the

dollar

or

periods

of

spo¬

radic unemployment.
The current boom has renewed
the belief of many observers

that

The Illinois Company
Incorporated

Loewi & Co.

continued, moderate infla¬
of the type that would def¬
initely cut the purchasing power
tion

Tucker, Anthony & Co.

Farwell, Chapman & Co.

J. M. Dain & Company

November 22, 1955.

Company, Inc.

W. 11. Newbold's Son & Co.

Piper, Jaffray & Hopwood

Watling, Lerchen & Co.

18

The Commercial and Financial Chronicle

(2202)

profitable to produce overseas, but
it is increasingly essential if we

New Horizons (01 Private

want to maintain

big international

markets built up over many years
of careful

Foieign Investments

The

and General Manager,

Monsanto Chemical Company

Overseas Division,

Young estimates that

-

ment

realistically states the case for
operations when it says:

the

of

challenges

greatest

nity today is the question of over¬
seas
investment. At stake is far
dends and

annually

profits

tant

now

we

business opera¬
borders—impor¬

our

on

tions beyond

all

divi¬
collect

than the $2.2 billion of

more

our

this amount is to the over¬

as

picture of
vidual companies.
profit

whether

question

going to enlarge

not

or

t he

is

are

we

maintain

or even

present share of overseas mar¬
kets
for
hundreds
of
kinds
of

our

manufactured

goods ranging from
typewriters, and from

chemicals to

machine tools to automobiles. For,

let

mistaken, the

be

not

us

is going to spread
intensify in practically every
part of the world. If we hope to

and

share

the

in

have

now

we

of the most promising over¬
we shaU do so only

many

markets

seas

expanding our production in¬
side their borders. And if we want
by

to

insure

flow

steady

a'

ade¬

of

quate supplies of many of the raw
materials our rapidly burgeoning
is going to need, we shall
to develop many of them

economy

have

ourselves
To
of

beyond

borders.

our

people in this audience

tne

foreign trade specialists
that

diction

businesses

and de¬
velop more mines and properties
is no surprise. One reason for the
than

more

convention

this

of

that

is

States'

United

2,500

have foreign
branches or subsidiaries, and in
the ten years since the war, they
companies

already

invested

have

in

lion

pansion

of

well

old

these

sizable

trade

and

our

operations

are

fraction of

this

ume,

totals,

our

can

ex¬

If,

despite

our

foreign

ones.

business

overseas

still

only

total

business vol¬

be

small

a

explained

logical development in
endowed

bil¬

$10

over

projects and the

new

originally

as

a

country

a

with

an

ex¬

traordinary range and quantity of
strategic
a
■

materials, and with

raw

population
that

it

bulk

of

fast

the

increases

that

has

could

in

topped by two recent Geneva con¬
have made it clear that

grown

readily

and

the

and

munist
But

World.

Free

the economic
front. After two world wars, dur¬
ing which it drew without stint on
its own resources, and following

so

absorb

for

call

expansion of its

the enormous

consumption

industrial

espe¬

—

last 20 years,
beginning to
shortages of vital raw

cially
into

the

the

States is

run

in

United

terials.
is

own

than

More

12%

of

ma¬

oil

our

pect
I

predict

investments

slightly

glimpse
into

this

as

shift

recent

sel'f-s ufficiency

our

than

more

no

20

a

years

indicates

future

the

is,

even

significant
changes.
Our
population by 1975, according to

more

will

experts,
with

millions—

220

this

soaring

of

way

top

that

all

in

means

demands

everything from coffee to
air

and

the

for

copper,

At

conditioning to automo¬
today's rate of trans¬

portation

and

biles.

speedup, London
European .capitals will

most

tainly be
from
the

than four hours

no more

New

York,

Orient

venient

not

holiday. I

and

Japan

of

out

reach

cer¬

for

and

the

con¬

two-week

a

inherently too

am

con¬

servative to venture any forecasts
on

of
to

in this

us

witness

room

satellite

—with

or

These

circling the earth

without

before

—well

stretching

human

a

pilot

1975.

kinds

the

are

fully expect
of experi¬

can

form

some

mental

of

measurements

mind-

of

the

climb

to

billion
(com¬
billion);

pared with today's $17.7

top

last

year). All

of this, of
must be predicated on the

supposition that there will be
major

no

predict further, that while

as

many as a thousand new United
States companies will enter the

international
bulk of the

business

the

scene,

expansion in

20

Today, however,

a

challenge confronts
ond

half

of

the

dramatic

20th

beginning to unfold

The

us.

new
sec¬

Century

as

is

something

quite different from that which

we

had expected, even as recently as
ten years ago.

Shifts

in

the

International

Spectacular

place

on

front.

have

have

taken

great colonial empires

beginning

become

of

the

century

unhinged in places.

London, Paris, Rome, Berlin, and
Tokyo

no

longer exercise dominant

*An
eign

address by Mr. Young at the For¬
Investments Session
of
the
42nd

National

Foreign Trade Convention, New
.York City, Nov. 15. 1955.




mind

when

in

plate

our

ment

fact

policies.

need

we

to

contem¬

we

overseas

Add

invest¬

them

to

the

according to the Harvard

—

Business Review

that Western

—

Europe's greatest economic change
the

present decade almost in¬

variably will

tem

to be the de¬

prove

of

distribution

a

sys¬

There

Sears

mass

to

ours

a

market; that firms like

Roebuck

America

like

is

are

also

distribution

proving Latin

growing

up

to

borders.
less

is

position
of
leadership in
today's
well''

economic

world

as

thfe' challenge from
orbit
to
prove

as

the
the

Communist

vitality of
ophy, they
smaller

the

United

pattern; and that hundreds

of my

fellow producers of

capitalist

our

philos¬

considerably

are

than they perhaps

should

out

pushes

us

that,

the

over

less
of

It boomed from
billion at the end

years.

than

$4

World

War

I

to

than

more

$7.5 billion in 1929; it declined to
less than $7 billion in the trouble¬
to

1930's,
$8 billion

10

years,

but had recovered
in 1945. In the last

some

however,

vestment
has

in

several

believe
will

that

double

years—to
I

operations

to

it,

it

is

not

I

these

total

do

not

investments

the

next

$35

of

10

billion.

investments

our

thinking largely on the
that oil companies have al¬

fact

ready showed the extraordinary
tempo
of
overseas
expansion
which

the

marked

first

seven

or

eight
that

after the
big iron ore

and
develop¬

years
our

in

have

Canada

also

manded
market

and

war,

Venezuela

the peak de¬
the initial stages. The
passed

in

for

American

technology

World

still have not fully

we

recovered,

and

Second
the prob¬

the

when

War

magnified
lem, American manufacturers
began warily to
set up small
factories

overseas

local

meet

to

market demands for their

product.

when the last official
made, there were 6,954
operating overseas as

1950,

By

count

was

units

branches

subsidiaries of United

or

companies,
had

Too

and

2,419

established

been

of

after

in this audi¬
which have
participated in this migration for
have

to

me

of

many

you

represent firms

ence

cite

to

typical

I

have

than

more

examples

have
to

Quaker Oats in the food field.
Sears

in

local

carried

has

Roebuck

business,

even

restrictions

currency

forced

merchandise

imported

the

the management—perhaps against
its will—to
add
local manufac¬

turing to the myriad of unfamiliar

to keep the
retailing
project

in

problems

order

international

alive.

ventured

firm, Monsanto, has
cautiously but success¬

fully into

overseas

My

of

1940's

expansion

by

in

the

late

smaller

investors who
had been prevented by the war
from
undertaking normal over¬
seas
developments, but who now
back

to

more

uling of their

normal

overseas

sched¬

programs.

operations—as

chemical

other

have

and

drug

most

ventures

recently

are

announced
entirely
new

an

manufacturing

operation

two

compelling
urges, however, to sustain the $1
to
$1.5 billion a year that we
on

in

Argentina and substantial expan¬
sions of our existing operations in

England,

and

Japan

Mexico—all

financed primarily by private

in¬

of;Raw

development of
of

sources

less

10

or

in

the

20

last

States
be

but

10,

involved,

next

it

has

been

United

likely to
if the total
facilities
is

are

even

outlay

smaller.

the

more

companies

annual

over¬

in

than

years

new

materials may

raw

spectacular

for
all.

the develop¬
huge Middle East oil

After

ment of the

basin outstripped in both size and

glamour
before

anything

been

in

except

that

had

undertaken

time

of

Canada

and

the

and

war,

development of great iron
in

ever

overseas

beds

ore

Venezuela—while

C.

market

Nielsen,

but

with

the

drugstore

coun¬

special reputation in
field, moved into
the
first
sign
that

a

at

scientific
markets

measurement

local

of

in demand—and has

was

already expanded its operations to
Continent.

And

only last September when
Association for For¬

the Bankers'

eign Trade gathered in Chicago to
discuss the problems peculiar to
rapidly growing international
business, representatives of 112
banks

in

states

24

were

oresent.

When the Association was founded
in

they

1921

it

boasted

This

bers.

only

10

expansion of the over¬
of
our
leading

ties

mean

American

for

information

who

want

vice

on

their

dollars

where

/

in

and wider credit

to

under way

in regions as far apart
asl Jamaica and Australia. A little
study

of

cates

the

Paley

Report

that for supplies

other

of

ber

of

overlooking sulfur—we
to

turn

a

indi¬
num¬

materials—not

increasingly

even

likely
foreign

are

to

production to supplement

do¬

our

In
agricultural
lines, timber and timber products
output.

likely to top the list, since our
American
neighbors seem

are

Latin

perfectly capable without our aid
of expanding supnlies of our big¬

gest import — coffee — no matter
rapidly
our
consumption
grows.
But as our market grows,
United States capital and knowhow may share with local pro¬
the

ducers

the

soaring

problems of meeting
demand
for every

other agricultural product that we

We and

import.

pliers need

our overseas sup¬

remember that in
shall almost

to

the next 20 years we

certainly

add

population,

million to
increase of

55

or an

our

one-

above today's total.

The full significance

of the

new

responsibility that this spectacular
growth imposes on us—and on our
overseas
is understood

friends

—

long

as

ago

21% of all

or

1952,

as

our

which

were

by United States business

in which it had
With

ment.

on

ence

than

more

imports came from

abroad

companies
owned

stop to realize that,

we

major invest¬

mounting depend¬

our

foreign

a

raw

materials this

shrink.

to

ton claimed that

In

fact, Washing¬

by last November

it had already grown to

25%.

The Investment Climate

Our

has
for
long as I can remember
with the problems of convertibil¬
ity, quotas, and the whole range
of problems that we usually lump
been

foreign

trade

group

preoccupied

justifiably

almost

as

the

under

term

"investment

cli¬

mate."

"investment

This
far

climate,"

as.

regulations on the statute
are
concerned, is not a

as

books

deal better today than it
before the war in the

great

just

1930s, but it is obvious from the

ad¬

already pointed out, the preserva¬

and

plunk

down

foreign ventures,
facilities for the

steadily mounting volume of for¬

overseas

more

investors

speedier financing for ex¬
and importers, increased

porters
service

far

be

production of

cited that we are
far more ex¬
now.
There are several
reasons
for this, it seems to me,
and since they are likely to be
continuing influences, they are
worth highlighting.
In
the
first
place, as I have

indicative of the mount¬

importance of international
Growing banking facili¬
in all corners of the globe

ing

to

Expanded

bauxite, copper, lead, and uranium
by United States firms is already

was

mem¬

facilities

seas

likely

are

diverse.

than

A.

sellors to all kinds of distributors

the

future may be on a smaller scale,

percentage is more likely to rise

funds.

vestment

eign business. Newcomers in

Overseas Investment

be

only when

producers.

Compelling Forces for

count

seas

own

business.

during the past
years, has already shown
signs of diminishing. In addition,
however, there
was
a
modest

Sources

Materials
The

third

investment

totals

,

Overseas

how

referred

already

a

the

of

that

diversity of interests
been represented.

banks is

several

growth

mestic

kpow-how, which has been a
strong contributor to the rise of

or

in their early sur¬
result of this spectacular
of banking facilities.

manufactur¬

overseas

from which

base my

are

only

in

date

Britain

doubled.
reasons,

again in

a

direct in¬

our

overseas

than

more

For

every¬

when necessity

to

Our

expansion into
overseas
by direct private in¬
vestment
has
grown
irregularly

I

finding

has

them

veys as a

somewhat less costly—utilized all
ing properties has been a desir'd of the massive
equipment and
to
preserve
profitable markets
specialized know-how of the most
which
we
originally established
highly mechanized war in history.
for our exports/When the depres¬
Though individual foreign de¬
sion of the 1930's touched off the
velopment projects in the near
wave of currency inconvertibility

Our

production

Two

thing from foods to chemicals

which

be.

are
on

States

readily ad¬
or
not, the
impelled us to

make the bulk of

overseas

daring in these
forecasts than you might at first
expect.
And,
considering
this

wave

geared

one-class

have

we

heretofore

it

when

ments

future

velopment

the international political

The

the

of

shifts

which

have

in

Political Front

years

Whether

•

mitted

torch for the retail

our

which

no

companies

already
operating
branches or subsidiaries

growing

a

materials

raw

business will be made by the 2,500

more.

next

of

can

few

war.

so

longer supply or soon
will be unable to supply in ade¬
quate quantities domestically.
we

billion1, and may exceed
billion (compared with $2.2

course,

I

growing needs for

1945.

billion

the

markets for

they

number

States

$5

and

The second is the urge to cover

these

on

business

overseas

wider

create

mass-produce
efficiently at home. "
cur

able to

long and costly
the newcomers—

or—for
to

of

Thursday,November 24,1955

.

.

markets
abroad,

established

products

this

in

result

preserve

diversified

will

and that the annual return
stake

travel, but I think most

space

United

of

will

$40

over

years

the direct

1975

and

business

States

country's

Portentous

investment

in the 20

that

now

borders.

in

foreign

the

on

front?

through
beyond

comes

in

Against this exciting backdrop
phenomenal growth and con¬
vulsive change, what can we ex¬

imported; 20% of our iron
from abroad; imported
copper supplies a quarter of our
demand; and half of our lead is
currently produced outside our
now

ore

Expect

Years

of

$6'1/2

spectacular shifts

even more

have taken place on

industry's incredible

output,

be expected in

that can

the most

today's tense rivalry is an uneasy
accommodation between the Com¬

States

going to build more

manufacturing facilities

size

war

ferences

pre¬

a

United

more

are

of cold

years

Can

We

Coming

overseas

Ten

business.

other directions.

from

What

governing and of doing

phies of

now

the motivation has

areas

stemmed

between

urge

self-sufficient

hold

—

—

other

In

in which
operates.

areas

company

own

direct

a

with

desire

force

certainly the motivat¬

was

diametrically opposed philoso¬

become more

industrialize and

to

Moscow

operating

time, but the evi¬
they will show satis¬

ing force in many

Washington
and around their

orbits

short

a

This

change of all, however, is the fact
that the
world today gravitates
two

small

factory growth and earnings."

while places like Morocco,
Egypt, India, and Indonesia com¬
mand
increasing
attention,
and
China casts a steadily lengthening
snaaow over the whole of South¬
eastern
Asia.
Most
significant

around

Brazil,

dence is that

tions,

and

involved

Actually

indi¬

many

have

in

profitable local markets
we
had spent years in building.
These units have been operating

negotia¬

influence in international

now

abandon

my

One

efforts,
the

only

is
to

have

we

more

Colombia, and
Argentina.
We
were
forced to
establish these production units or

climate."

facing our foreign trade commu¬

Oats Company, in

Quaker

units

first

desire

its last annual stockholders' report

"We

more

The
our

sometimes

overseas

than 2,500 U. S. companies
already have foreign branches or subsidiaries and in last ten
years they have invested over $10 billions in new projects
and expansion of old ones. Predicts that by 1975, assuming
no major war, direct overseas investments of U. S. business
will exceed $40 billions, or more than twice present amount.
Says this development will result from the desire to preserve
established markets, and the urge to obtain needed raw mate¬
rials. Sees some little improvement in the overseas "invest-

Mr.

planning and hard sell¬

ing effort.

YOUNG*

By MARSHALL E.
Vice-President

have been adding recently to our
investment in overseas operations:

.

the

field will run into fewer

I

figures

operating
tensively

have

overseas

.

tion of

our

has

kets

stake in overseas mar¬

become

so

much

more

important than it used to be; we
are

working harder to find more

ways

to

preserve

it

—

including

making more intensive and better
planned efforts to manufacture
abroad.

obstacles

when

they

start

to

do

business abroad and will find that
far

more

concrete

help

is avail¬

In

also
more

the

second

place, as I have

out, we have a far
acute need today to organize

pointed

Volume

Number 5484

182

...

The Commercial and Financial Chronicle

19

(2203)

and

produce

increasing
raw

steady flow of

a

number

of

materials outside

beginning to produce.
Even .so,
earnings show an over-all profit'

an

essential
borders.

our

ratio

14-17%, a good—if not
spectacular—record.

Pushed by this necessity, we have
found ways in the last few years

So, it seems to

of fulfilling our needs despite ob¬
stacles ' which
formerly
seemed

be

But

there

is

third

a

many

in this group

even

specialists—are

point.

I

The

persons—

last

of foreign trade

aware

of tne

may

-

Vice President

a,

over¬

of

growth

few

too

of

son

the1

of

is the result of

years

a

minute

to ignore such unhappy

situations

as

some

the losses that

even

or

the

British

chronic

dollar exchange.

when

the

and

shortage of

market.

can

have

us

Big and

The

to

since

believe,

powerful

;

1929.

that

ket

the

takes

often

most

head¬

of

so many

But

how

that

of

us are

of

many

are

foreign earnings account for
10% of total earnings of

about
those

States

United

the

the
t i

•

f
Alvin W. Pearson

since

o n

rector in

is

son

was

trustee

a

elected

a

di¬

October, 1949. Mr. Pear¬
of

Reed

College,

Portland, Oregon.

air¬

of

we

than

potential

our

Yates, Heitner & Woods

And,
have a

us.

An

1

original colored etching of Independence Hall is presented

to Walter A.

ever

Bankers

needs—

Schmidt

Association

America

and

partner

in

the

supply.

Drexel & Co. made the presentation to Mr. Schmidt in recognition
of his

Must Invest $1 to

ing companies which operate both

Billion

Jr.,

of

the

investment

banking

firm

witnesses

the

presentation

at

a

Midwest

appointed

Harley L.

luncheon

LOUIS, Mo.—Yates, Heitner
320 North Fourth St.,

Woods,

members

of

of

the

Stock

New

James

J.

and

York

Exchanges,

have

O'Brien

as

Missouri Bank representative. Mr.
O'Brien was formerly with New-

Goldman, Sachs & Co., President of the Bond Club of

Philadelphia,

domestically and abroad? Also, do

partner

&

Edward IIop-

outstanding contribution to investment hanking.

Rankin of

A Year Abroad

senior

ST.

investment

securities firm of Schmidt, Poole, Roberts & Parke.

kinson,

Appoint J. J. O'Brien

(left), retiring President of the Investment
of

both in the way of expanded mar¬
kets
and
increased
sources
of

manufactur¬

o

Corpora-

May, 1942 and

wealth

a

help

today

measure

before

aware

to

important of all,

better

here today.

you

information

most

Probably the best evidence that
overseas
business is profitable is
that

from

has

Vice

a

steamship lines, the banks,

and the government have

lines.
;

teams

survey

lines,

picture, though it is the one

in

President

firms

ready

of

maze

But this is only one side

another.
of the

the

in

was

He

been

the way and set the
Fellow executives^ are al-

-

Sep tember,

established abroad solving
quotas,
basic problems of communications,
soft currencies, and nationalistic
restrictions have undoubtedly hit transport, labor regulations, taxes,
and the transfer of profits.
Marall of us seriously at one time or
business

it

organized

first '■

look

i t h

w

Lehman

Corporation

thinking. "
I

come,

need

3

Mr. Pearson

paved

pace.

of doing

costs

of

their

opportunity, and then the
risks, just as aggressive leaders do
when they evaluate a new home

con¬

operate for long without showing

a'profit,

all

has

1
City,

York

Presi¬

,

ciatedv

the

at

pound,

No business

time

New

-

•has been'asso-

the1-

and

President

Leh-

dent.

They have al¬

complexities

dominate

to

The

problems that have

of

Brazil's

of

risks

over¬

arisen because of the lack of

vertibility

the

,m a n

n

Vice

Corporation,

b y

Robert

business have sim- '

trailed along.

have suffered

in the Far East. I don't

overseas

lowed

years now, or

some

look the acute

ply

have faced in the

we

Argentine for

in this

a

nounced

been

to appear

Street,

was

than half of it; 200 companies es- *
earning — and tablished
the trend
and—I
imtransferring home—over all t'. ese
agine—will enjoy the handsomest1
•years when
the investment cli¬
profits from it.
So far,~ the re- '
mate seemed so inhospitable over¬
maining 2,300 companies involved
seas.
I don't want for

have

panies

Lehman

William

Two'

us.

Executive

as

The

of

the;

dozen companies account for more "

handsome profits that many com¬

Corp. Names j

The election of Alvin W. Pear¬

dramatic

ten

efforts

very

subject of

Lehman

Pearson Executive

to take

us

Phila. Bond Club Honors Walter A. Schmidt

a

investment.

seas

just how

that this

me

good time for

a

fresh look at the

insurmountable.

wonder

of

meeting

The challenge, it seems to me,
of the Bond Club, Nov. 17, in the Warwick Hotel, Philadelphia.
hard, Cook & Co. I
that almost the same
is clear cut.
Merely to maintain
percentage of the net book assets
our
stake in world business we
of
these
companies
is
located
Two With Stern Brothers
Joins Lester, Ryons
need to invest from $1 to $l1/2 bil¬
abroad?
In the petroleum indus¬
lion a year in projects beyond our
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
try, more than one-third of the
borders.
I don't think that any
LOS ANGELES, CALIF.—John
KANSAS CITY, MO. — John
total earnings of the industry is
progressive management is will¬ W. Olander Jr. and Thomas L. L. Mathison is now connected
derived
from producing
abroad
MEMPHIS,
Tenn. — Rader,
ingly going to lose its place in the Wilkerson are now with Stern with Lester, Ryons & Co., 623
and supplying crude and refined
lineup. The problem for each re¬ Brothers & Co., 1009 Baltimore South Hope Street, members of Wilder & Co. has been formed
products to the United States and
with
offices
in
the
Union Planters
sponsible executive—with all the Avenue, members of the Midwest the New York and Los Angeles
the expanding economies of for¬
Bank
Building to engage in a
new information at his disposal—
Stock Exchanges.
Stock Exchange.
eign countries.
securities business.
Officers are
is to fix his eye on the opportuni¬
Don't be deceived into thinking
R. Bruce Rader, President; Gor¬
ties and, when he has taken their
that these profits are hopelessly
don J. Wilder, Vice-President and
measure carefully, to weigh them
Two With J. Logan
With State Bond & Mtg.
locked
up
abroad, despite the against the risks.
Treasurer; and William K. West,
Judging by the
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
prevalence of currency restric¬ experience of those who have
Jr., Secretary.
Mr. Rader was
pio¬
LOS ANGELES, CALIF.—Musa
NEW ULM, MINN. — J. Scott
tions
in
many
countries. More neered the field so
formerly local Manager for Clark,
vigorously in
countries than many of you real¬
L.
Miller
and Bernhardt Packer
Landstreet
&
the last ten years, the returns are Hemry
is now connected with
Kirkpatrick
and
ize make possible the transfer of
worth the gamble.
State Bond & Mortgage Co., 28 have joined the staff of J. Logan
prior thereto was with Mid-South
profits—or of a large portion of
& Co., 210 West Seventh Street.
Securities Co.
Beyond this issue, however, North Minnesota Street.
them in order to attract desper¬

know

you

Rader, Wilder & Go.
Formed in

*

there is the challenge from

ately needed development capital
and know-how. In 1946, the first

to

cow

Mos¬

dominant

position in
the world's economy. Leaders from
year after the war and at a time
within
our
group
have already
when overseas direct investments
demonstrated that this challenge
amounted to less than $9 billion,
can
be faced successfully within
American
operators
transferred
the framework of our private en¬
home in the form of dividends,
terprise system, and at a profit.
interest, and branch profits a total
I have no doubt that when this
of
$636 million, - and reinvested
$300 million overseas where it was country's 2,500 foreign traders—
rather than just the 200 leaders
earned.
There is no record, un¬
fortunately, of how much of the —put their collective drive to work
our

.

$300 million

be trans¬

could not

at the time

ferred

because of

ex¬

change restrictions and how much
.was left
overseas
because of the

attractiveness—profitwise—of the
local operation.

we

shall

the

do

job

and to the benefit of

friends

as

Joins

Memphis

well

as

This announcement is not
to

an

offer to sell,

or a

solicitation of

an

offer

buy these securities. The offering is made only by the Prospectus.
November 22, 1955

NEW ISSUE

175,000

SHARES

successfully
our

overseas

ourselves.

The Siegler Corporation

McCoy & Willard

COMMON

STOCK

(Special to The Financial Chronicle)

1950,

By

-

tions

overseas

our

paid

us

$1,469

opera¬

million

in

profits which we transferred, and
another $443 million which we
immediately reinvested. Some part
.of

BOSTON, MASS.
Orlito

seas

of

new

capital into

over¬

projects the same year.
last

By

year,

netted

tions

all

billion,
which

we

us

but

opera¬

return

of $2.2

a

$800

million

transferred

to

DETROIT, MICH.
Carsley is now with

of

largest), and in parts of the
Far East and Europe.

creased
line

the

soaring

total




>
i

F.

B. C. Morton

Copies of the Prospectus

Clarey

in

Keenan

&

now

—

States

in

which

may

be obtained from

such underwriters

are

any

of the several underwriters only

qualified to

securities and in which the Prospectus may

act

as

dealers

in

legally be distributed.

Jo¬

associated

Clarey, Inc., Mc-

William I?. Staats & Co.

Knight Building.
/

Joins

Dominicii & Dominick

King Merritt

(Special to The Financial Chronicle)

we

invested, this is admittedly
due to the fact that some of the
most costly projects are only now
have

(Par Value $1 Per Share)

price si: 5 per share

John

MINNEAPOLIS, MINN.
with

investments has not in¬
in the last few years in

witli

^

Co., Penobscot Building.

seph J. Sterner is

While the rate of return on our
overseas

\

Mc¬

(Special to The Financial Chronicle)

accounts even in the face of gen¬

are

with

—

Joins Keenan &

home

erally difficult transfer conditions
in a number of Latin American
-countries (where our investments

Michael J.

(Special to The Financial Chronicle)

&

overseas

—

affiliated

With B. C. Morton

reinvested
because
additional $700

Americans put an
million

now

Coy & Willard, 30 Federal Street.

at least, must have been

this,

willingly

is

SPRINGFIELD,
B.

Cunningham is

Merritt

Building.

&

Co.,

MO.
now

Inc.,

—

Alvin

with King

Woodruff

sciiwabaciier & co?

Baciie & Co?

mi

20

The Commercial and Financial Chronicle

(2204)

the

FNMA'S Role in Mortgage

Market

By J. STANLEY BAUGHMAN*

of

he

Federal

the

National

heads, and describes its activities and the

tion

useful by

be

can

for home mortgages.

Indicates

Those

of

supplying secondary market services

ciation

FNMA,
is

not

of

have not had

in

are

Special

—

be

little

the

it

housing

A

financing
of
these
programs
FNMA supplements but does not

nto

activities of private
enterprise. Government funds are
used only when and to the extent
supplant the

brief

statement

the

f

o

back¬

J.

Stanley Baughman

lead¬

ground

that

establishment

of

Association

the

description of its activities
supply the answers to some

a

of private

activities

the

FNMA issues com¬
commit to pur¬
mortgages, and
it

program

It may

mitments.

whole

chase

may
also issue commitments to
purchase participations in mort¬

of these questions. I hope that my
remarks will provide a
clearer

gages.

understanding

plan FNMA will purchase a

activities

about
the

and

ways

FNMA's

in which

Association may be useful to
the members of your organization.
the

For

various

years

many

trade

have recognized the de¬
sirability and need for a privately
financed and privately owned and
managed organization to provide
groups

secondary market
services for
home mortgages. To achieve this

en¬

terprise might not suffice. Under
this

to the

up

the

In

inadequate.

are

participation
20%
participation
in
a
the

Under

immediate

mortgage

and

enter into

a

the

at

same

mortgage upon the occurrence of
such a default as gives rise to the
right to foreclose.

has

Association

the

end

seven

scale,

covering (1) housing in¬
tended primarily for
victims of
major disasters, such as hurri¬
canes and
floods, (2) housing in

quickly and on an adequate
a limited measure of gov¬
ernment participation was made

possible by the approval last
of the Federal National

Association

Charter

Mortgage

Act.

the

Specifically,
authorizes

year

Charter

FNMA

to

Act

conduct

Assistance

Special

pro¬

Guam, (3) housing constructed or
rehabilitated
under
Urban
Re¬
newal

Alaska, (5) housing for defense
and military personnel, (6) coop¬

Market

for the Armed Services.

-

(2) the Spe¬
Functions,
and
(3) the Management and Liqui¬
dating Functions.
cial

Operations,

Assistance

Management and

erative

As

(7) housing

housing, and

specific

programs are au¬
FNMA issues an an¬
setting forth com¬

thorized,

nouncement

plete information concerning such
items as commitments and prices.

Liquidating

Functions

Management

and

Liquidating
Functions,
FNMA
manages
and liquidates its re¬
maining "old" mortgage portfolio
in
an
orderly manner, with a
minimum

of

adverse

residential

the

effect upon

mortgage

market

and minimum loss to the Federal

government.
in

than

more

"it purchased
billion of mort¬

1938,

$4%

providing for over 600,000
dwelling units. About $2V4 billion
gages,
in

mortgages
sales

and

already been

repayments
investors, so that

to

remains

there

the

have

through

liquidated

in

the portfolio of

Management and Liquidating

approximately $2% bil¬
lion to be liquidated solely for
the account of the government.
Functions

Special
The

Assistance

Special

new

Functions are

specific

Functions

Assistance
conducted upon the

authorization

President of the United

of

the

States

or

of the

Congress, using funds bor¬
rowed from the Treasury. Special

assistance is

provided for financ¬
ing selected types of residential
mortgages, pending establishment
of
their
marketability.
Special

common

connection

in

with

Assistance

Special

mortgages

Association under the

sold to the

Functions nor

is there an,y recourse to the capi¬
talization of FNMA, as in the new

Secondary Market Operations. All
benefits
the

From the time of FNMA's estab¬

lishment

chase the

do not pur¬
stock of FNMA

sellers

Mortgage

its

Under

Assistance
to the

incident

burdens

and

administration

of

Functions

the

to

Special

inure solely

Secretary of the Treasury.

new

secondary Market Op¬

♦An

available for residential mortgage

financing. This is accomplished by

purchase

of

mortgages

at

when, and in areas where,
financing is needed and by the
times

subsequent sale of the mortgages
when and where investment funds
are

A

the

National

by Mr. Baughman before

Association

of

Real

Estate

Boards, New York City, Nov. 7, 1955.




insurance

financing

assistance

housing programs, by recent leg¬
islation permitting national banks
to expand their mortgage lending
activities to include 20-year mort¬
gage loans up to 66%% of value
by
some
pension fund invest¬
ments, and by FNMA.
With the establishment last year

of

FNMA

ket

secondary

a

as

facility

for

the

under

Charter

Act,

tance

the

to

market

mortgage

greater

even

The

clear

operations

sold

facility

is

terprise during
determined

to

a
a

private

en¬

by

U.

York

Stock

to

Henry

on

secondary

a

language

being

demon¬

the

United

Na¬

may

not

essarily be applicable to the
try

as

whole.

a

which

FNMA's

The

nec¬

coun¬

should

operations

distribution.

Secondary Market

new

designed so that
they will eventually become pri¬
vately owned and financed. Cap¬
ital
and
operating
funds
are
obtained through the issuance of
common and preferred
stock and
by the sale to the public of notes
are

debentures in

or

ten

the

times

an

amount up to

Association's

total

surplus.

The

capitalization
Secretary of

the

Treasury

has

subscribed

$93 million of

pre¬

ferred

to

stock.

eyentual

and

To

provide

transfer

of

for

the

the

and sales

increases, its borrowing
purchasing
authority
will
expand
and
thereby
provide
assurance of liquidity for accept¬
able mortgages, at market prices
as determined by the Association.
and

of

Holders

the

common

stock

receive dividends, as deter¬
mined by the FNMA Board
of
Directors, not in excess of five

may

not in
excess of the dividend
rate paid
to the Treasury on the preferred
cent

per

annum

and

should not be regarded as a pen¬

alty

should

nor

discount

a

it

be

considered

connection

in

with

the sale of mortgages. The record

FNMA's

over

the

stock

as

its

told

Ambassador

in-

v

estments

abroad.

%

respected.
G.

being

considered

the

of

Funston

As-

General

United

the

of

sembly

Keith

by

Committee

a

rights of individuals, including in¬
vestors,
everywhere
must
be

Nations,

states:

shall

termination

include

nerma-

sovereignty over their nat¬
wealth
may

and

In

resources.

people

a

be

no

deprived
on

but

cannot

fect upon

Oswald

B.

of the

III

stated

is already

large

United

"this

that

Nations,

phraseology

regarded widely among
of public

elements

opinion

implying endorsement by the

General

Assembly of the right of

expropriation

of

foreign

without

investment

capital

compensa¬

overseas

letter

Ambassador

to

rights,

recognize

have

this

adverse

an

ef¬

7%
in

million American
all

of

life,"

"are direct share

walks

own¬

and tens of millions more are
indirect owners of American

ers,

the

companies and

institutions which

have made and

are

contemplating

making investments
than

"More

trial

half

overseas.

the

of

indus¬

companies whose stocks

listed

New

the

on

are

Stock

York

Exchange have part of their assets
invested
abroad.
The investing
also

of

enterprises
are

directly

owns

shares

which

Lodge, Mr. Funston commented:

property is

investment and the will¬

he added,

and

his

In

to

ingness of people to invest their
savings outside of their national
boundaries.

public

tion."

own

the climate for private

"At least

mittee

as

failure

a

individuals

rights

to

of the oldest of human

be claimed by other states."

other

Lord, United
Nations alternate delegate in Com¬
has

individuals

that

of

ground

may

of

one

and

"The right of peoples to self de¬

case

"Free countries," Mr, Funston
declared, "recognize that the right

numerous

governments

and

listed

bonds
foreign

on

the Exchange."

Market

Operations to pri¬
ownership,
lender-mortga¬
gees subscribe to FNMA's common
stock in an amount equal to 3%
of the unpaid principal balances
of the mortgages they sell to the
Association. More than $1 million
of common stock has already been
subscribed by users of the facility.
Consequently, the basic capitali¬
zation
and
borrowing authority
are now more than $1 billion. As
the volume of FNMA's purchases

of

Funston

Secon¬

vate

as

Mr.

American

Mrs.

FNMA's

ance

long standing."

size his agreement with the United
States view that any final draft
should make crystal clear that the

the

Operations

prompt, adequate and ef¬
compensation in accord¬
with
international law of

fective

of its own means of subsistence

Financing of Secondary Market

Operations

given

of

ural

their

by peoples' savings is not
questioned,
provided
they
are

dollars

market

and

nationalize the investments repre¬

Lodge that he wanted to empha¬

nent

depends upon the avail¬
of other mortgage credits

rights, aspirations
or
sovereignty of other nations.
The right of sovereign nations to

jeopard¬

billions

supplement the general secondary
ability

special

do they desire to in¬

nor

terfere with the

of

to

extent

privilege

neither

seek

sented

Rights

now

but

,

"Investors

Hu-

on

m a n

could

the Covenants,

areas

N.,

Cove¬

tional

substantially diminished. At
any particular time, need for the
facility can exist in certain geo¬
graphical

U.

Interna¬

tions

mortgage funds have disappeared
or

the

to

a

Lodge,

pro¬

in

posed

A section of

now

Cabot

that

in many areas where

strated

Exchange, in

Ambassador

S.

warned

taken

even

consistent

establishes

years

the

being of real value. But
more

holders

can

significance,
a

means

die-

by which

participate in the.,

establishment and development of
the

type of privately owned

sec¬

ondary market facility the home
mortgage industry needs
vide

liquidity

in

times

Continued

on

Bondholders

Approve Connecticut PlanNew $100,000,000 Issue Scheduled for Dec. 13
Revised

financing

program

had been recommended by Lehman

Bros., Financial Consultants,

as

being advantageous to bond¬

holders and the State of Connecticut
Connecticut Governor Abraham

Connecticut State

A. Ribicoff and
Treasurer

John

nounced that the

Ottaviano

legally required

holders

number

of

000,000

outstanding

Revenue

of

the

$100,-

Expressway

Motor

and

an¬

Fuel

Tax

revised

to

of

pro¬

stress

page

45

Actually

later

may

be

Legislature

the

bonds but has in¬
cents

free road

any

creased the gasoline tax to 6

gallon

per

for

the

nium.

Bonds, First Series, have approved
the State of Connecticut's

which

bonds

road

issued.

has not authorized the issuance of

A 4-cent

fiscal

bien-

current
J

'-'v.

gasoline tax in the last
produced

year

than

more

plan for financing the $398,000,000
Connecticut Turnpike,
originally

$25,000,000 and other motor vehi¬

named

600,000.

Greenwich-Killingly

Ex¬

cle fees and taxes more than $15,-

The State expects to col¬

and that Second Series
Bonds in the amount of $100,000,-

lect

000 will be offered for public

charges on the $398,000,000 rev¬
enue bonds, which
are estimated

pressway,

on

Tues., Dec.

ers,

sale

13. Lehman Broth¬

Financial Consultants to the

State of Connecticut with
to the Turnpike,

respect

being advantageous to both bond¬

The State had proposed to bond¬

holders that the original financing

to permit the
State to finance free roads through
so as

issuance

the

bonds

of

able from

tional

revenues.

security for both

future

standing

and

State has

pledged

$11,300,000 for
of operation.

The

$100,000,000

be offered
ture

the

pay¬

As addi¬
the out¬

bonds,

never

the

to reduce

fully

service

full

first

I
new

bonds

in December will

serially

105%.

at

be requested at

to

ma¬

July 1 from 1961

on

ning in 1961

a

begin¬

Bids will

price of not less

than par value and accrued inter¬

est, with interest rates to be named

by the bidders.
Connecticut

gasoline taxes and other

highway fund

debt

to 1995 and will be callable

holder and the State.

plan be revised

at

revenues

meet

to

year

had recommended

approval of these amendments as

Turnpike toll

sufficient

earnings

given period is

large extent

New
letter

ize

significance.

stock furnishes

understanding of the
of the general secon¬

and financed by

abroad.

secondary

has

for such

need

market

general

on Human Rights"
jeopardize billions of dollars of American investments

Keith Funston, President of the

mortgages^ nants

home

FNMA

mar¬

however, the Association's assis¬

of

plentiful.

may

address

and

private

also be provided dary mortgage market is impor¬
through
purchasing
residential tant because the volume of new
mortgages, generally, as a means and existing housing that can be
assistance

banks,

and

which are financed by stock so
long as any of the pre¬
capital to the maximum ferred
stock remains outstanding.
extent
feasible,
supply supple¬
Although the common stock may
mentary assistance to the general
be issued initially only to mort¬
secondary market for residential
gage
sellers, it is nevertheless
mortgages by providing a degree
freely transferable, and FNMA
of liquidity for mortgage invest¬
imposes no restrictions as to who
ments. FNMA's Secondary Market
may hold it.
Operations serve to improve the
The purchase of FNMA stock
distribution of investment capital

erations,

the

writes

of the draft for "International Covenants

per

Secondary Market Operations
The

have,/

Rights

Funston, President of the New York Stock Exchange,
Ambassador Henry Cabot Lodge that Par. 3 of Article I

could

in dary

housing

(4)

programs,

mortgages

savings
companies.

grams

separate operations,
each
with
separate
?'■ accountability.
These
are
(1)
the
Secondary

three

home

Keith

commercial

related deferred par¬

far

for

time

ticipation agreement under which
it agrees to purchase the remain¬
ing outstanding interest in the

Thus

Nations Declaration of Human

being widely discussed
builders, Realtors, mort¬
companies,
and
bankers.

tions,

instances

in

programs

facilities

opera¬

tions.

Market

Against Clause in United

supplied primar¬
ily by savings and loan associa¬

where established home financing

how

i

fits

your

will

the

it

what

—

purposes

and

with

tions. The general purpose

about

are—and

ing

Functions

confused

be

what

—

it

not

Secondary

new

may

organiza¬

its

Assistance

should

what

curious

tion;

mortgage

Opera¬
of the
Special Assistance Functions is to
assist in financing
home mort¬
gages
originated
under
special

a

does

decline

a

it

called

is

stopping

or

as

with

Mortgage Asso¬

sometimes

our

retarding

or

transactions
National

Federal

lists the special acceptability require¬

—

business

or

Warns

limita¬

has been made available by ware¬

lending and home
building activities which threatens
materially the stability of a high
level national economy. The new

acquainted with

its

and

are

Additional

rapidly increasing business of the FNMA.

who

you

the Associa¬

ways

market

in the past, been

Gives information regarding secondary

market operations, and
ments.

to the

up

tions

gage
Funds

establish¬
Mortgage Association, which

Baughman reviews background leading

ment

mortgage
among

President, Federal National Mortgage Association

Mr.

availability of funds for long
mortgage financing. Today's

term

Thursday, November 24,1955

...

Highway Commis¬

sioner, Newman E.Argraves, stated
the

129-mile

turnpike

from

the

New York State line at Greenwich
to

the

Rhode Island

line at

Kill-

the gasoline tax below 4 cents per

ingly is scheduled for opening by

gallon

the end of 1957. The Commissioner

are

so

long

as any

outstanding

and

of the bonds
has

made

expects proceeds of the forthcom¬

other motor vehicle fees and taxes

ing bond sale to

available for payment of any free

the fall of 1956.

cover

co~ts until

Volume 182

Number

Continued

jrom

5484

.

.

.

The Commercial and Financial Chronicle

continue that way for at least

13

page

next

decades.

two

the

central

For

oi Atomic Energy
On the Petroleum Industry

,

adversely affected by atomic

ener¬

in the foreseeable future.

gy

the

contrary,

atomic

likely to help
indirect

and

in

us

On

is

energy

direct

many

increasing tendency toward
decentralization, for both industry
and the population generally, is
undoubtedly partly due to the
bomb

Decentrali¬

threat.

atomic bomb to produce the

an

devastating thermonuclear explo¬
sions about which you have read
much.

so

The

For example,

ways.

the

atomic

in

involved,

the

undesirable

sharp

in

reduction

radiation

other

and

the

ma¬

possibility

of fission for power, generation an

appealing one. The value of
possible success is so great that

oil, and mainly over roads built
with our asphalt.
New construc¬
tion in

outlying districts will use

oil-powered bulldozers and
tain asphalt-based building

cer¬
ma¬

The

of

enormously greater

atomic

bomber
do

oil

will

bombs

fuel

have

mean

continued

ranted,
lution

though

even

does

likely.

effort is

research

not

It is

early

an

be

to

seem

war¬

so¬

all

at

opinion, verified

my

by talks with individuals who

terials.

a

power

down

cut

if

requirements

but

war,

we

would

that

welcome reduction of the

a

load

industry's peak

in

war¬

much closer to

the situation

are

than

I, that the chance of getting con¬
trollable
power
at
competitive
from

cost

which

reaction

a

not be carried out until you

high

extremely

can¬

reach

temperatures

millions of de¬
time, and would lessen the need
for wartime rationing of our prod¬ grees Fahrenheit—or barely pos¬
ucts—even assuming the next war sible by bombardment of minute
particles in a very high vacuum
lasted long enough to require it.
with extremely high-velocity sub¬
Turning to a radically different
atomic particles, is quite remote.
benefit, the oil business — like
Dr. Smyth of Princeton, formerly
most ethers using science — will
Atomic Energy Commissioner, re¬
benefit
from
the
radioisotopes
ferred only last week to the ob¬
used as tracers in many lines of
stacles as
being "seemingly in¬
research.
Our products are more
surmountable." Of course, no true
complicated than most chemical
scientist will say that anything is
products, and so we are in an
impossible, and this is what tends
unusually favorable position to
to give those who like to make
use the information
make

possible. Tracers

already

are

being widely used to make quick
and accurate

automotive

engines

tools.

some

For

of

measures

or

tions

have

we

been using

logging

radioactive devices for
oil
wells.
Radioactive

markers

are

predic¬

advantage in public dis¬

an

cussions.

said

that

the

gene¬

is

(certainly

what

not

fuel is going to

what

but

out,

can

along to help carry the rap¬
growing load.
Petroleum's

come

idly

advantage in most of its
of
usefulness is
so
large

that only a very

major increase in
price could prevent it from having
business

all the

far

handle

to

25 years.

that

we

it would

beyond

It is much

next

the

certain
will find early use for all
more

petroleum we discover in this
country than it is for uranium—
our
weapons
requirements will

generating

given

a

power.

Barring

a

world

cataclysm,

world

population in the next cen¬
tury is almost certain to increase
by threefold and its power re¬
quirements at least tenfold. With

power

by-products
of
installations
will

sources of radia¬
important
carrying out chemical reactions
importance to the oil and chem¬

the long pull it will be, not
competitor, but a burden-sharer;
and
its
ultimate
availability
should still the recurrent cry that

running out of oil and that
the government should therefore

we

are

take

of

ical industries.
now

Much

research

is

Possibilities of the Fusion Type
of Process

I

I

ordinary temperature

and

being controllable within
temperature limits set by the

any

promised that before I closed

would

the

make

rather

remote

to

of

possibility

of

it

controllable

getting

from

power

"thermonuclear"

the

I

reference

some

"fusion"

or

would

ever

create

This

is

so

partly
in

increase

from

is

plutonium
238, or

uranium

made from

thorium,

with
the release
amounts of
energy. Most of the development
into

split

work

atoms

made

been

only

for

and

It

that

most

sun

comes

course,

learned

we

6,

of

the

from

a

1955,
as

quoted
trying

an

un¬

to

put

using these "heavily rounded" and
"Withv $10
a

to

$10

of

thing

on

freedom, both as a nation
and as an industry. There is more
inherent power im freedom than
in

of

physical manifestation

any

engines

Inv.

—

Leonard

ning Company with offices in the
Union

Building

to

in

engage

a

securities business.

and

and

transportation

other

liquids

trial

Forms Investor Service
MAPLEWOOD, N. J.—Irving S.

rities

business

New

England

a

offices

secu¬

Service

31

at

under

Road

Investor

of

name

from

the

Com¬

due to

were

we

cannot

twice
50

Two With Harris,

aircraft

of

other

and

cabinets

uses;

fuels

industrial
for

are

now

Co.,

an

232

A

Calif.

with

Harris,

—

metal

products,

including com¬
machinery and equipment.
company's customers include
some of the country's leading cor¬
porations.
Upon completion of the current

mercial
The

outstanding

the

of

of 333,000

Jo¬

Leong

Upham

&

371

company

capitaliza¬

will consist

shares of common stock;

shares

of

preferred

from

bonds

tures;

and

$5,000

of

equipment

headed by The First National City Bank of New
of New York 2.70% serial bonds
from 1.75% to 2.70%. Proceeds
sale of the bonds will be used for various municipal

group

the

on

and
a

school

construction.

The offering group won the

bid of 100.2899%.

Interest

on

the

bonds is exempt from Federal and New York

State income taxes.
Included in the

offering group are—Bankers Trust Company;

Guaranty Trust Company of New York; The First Boston Cor¬
poration; Smith, Barney & Co.; Halsey, Stuartl & Co. Inc.; C. J.
Devine & Co.; Salomon Bros. & Hutzler; Kuhn, Loeb & Co.;
Continental Illinois National Bank and Trust Company of Chi¬
cago;

Kidder, Peabody & Co.; Phelps, Fenn & Co.; White, Weld

National Bank of Port¬
Mercantile Trust Company St. Louis; Shields &
Co.; Stone & Webster Securities Corporation; Ira Haupt & Co.;
&

any

any

Co.; Eastman, Dillon & Co.; The First

land,

Oregon;

W. H. Morton & Co Incorporated.

no

circumstances to he construed

as an

offer to sell

or as a

solicitation

of these securities. The offering is made only by the Offering Circular.

known, even
fission,

you

the
fundamentally

you

get

can

133,100 Shares

$10

$10 worth of uranium,
get

can

heat, but

of

you

$10,000 worth of
need a stove that

Chromalloy
Corporation

would cost $100,000.
"With

$10

different type of nuclear reaction,

water,

you

namely, the "fusion" of the light
element hydrogen into the heavier

worth

of

would

November 21, 1955

NEW ISSUE

heat.

of

worth

could

heat,

cost

you

of

get

but

heavy

Common Stock

$100,000

the

stove

(Par Value $.10 Per Share)

$10 million."

element helium. This

that

of

reaction, like
involves the dis¬

fission,

Outlook

for the More Distant

Future

and the crea¬
tion of energy.
In the past this
reaction took
place only under

Thus far, I have been discussing
primarily the nuclear fuel outlook

extremely high temperatures and

for the next 25 years. Beyond

appearance

mass

those

like

pressures
the sun.

of

seemed unattainable
til

we

in

existing

Both of these conditions
earth

on

got the atomic

bomb

and

such

second,

a

of

realization

an

atomic

eventually

led

the
This

the

to

ization

of
of

cause

more
as

of

bomb,

heavier

but be¬

regarding

gets

likely

and

to

harder
trend

prices

to

of




Copies of the Offering Circular may be obtained from the underwriter
only in Stales in which the Offering Circular may legally be distributed.

is

find,

S. D. Fuller & Co.

the

petroleum
upward
that

continue

39

and
way;

of hydrogen, usually with whereas the trend of atomic power
and
should
isotope of lithium, are set off costs is downward

topes
an

in

iso¬

energy,

Price $2.25 Per Share

un¬

aistant future. It is true that

oil

costs

type
the

atomic

uncertainties

of

the rate of discovery of oil in the

thermonuclear
of

bound
uncer¬

because

Company is in the business of alloying chromium into the surface of ordinary steel,
Chromalloy Process which renders the metals
stainless steel and other high alloy steels.

iron and certain non-ferrous metals by the
treated comparable in many respects to

that

are

more

foreseen developments in the util¬

long-time

seme

and

only

not

discovery and development of the
which

more

and

near

bomb.

predictions

any

involve

tainty,

temperatures

did exist

pressures

center

to

un¬

realized that, for a few millionths
of

time,

The

Wllitehall 3-0066

stock;

$300,000 of 6% convertible deben¬

notes.

Street.

Montgomery

purposes

future.

offer to buy

various

York is offering $50,000,000 City
due 1956-1970 at prices yielding

Facing such a demand outlook,

of

lift

indus¬

$50,000,000 City of New York Bonds Offered

as

This announcement is under

and

components for the Univac digital
computer, and a variety of other

tion

Upham

(Special to The Financial Chronicle)

years

expect

for

pany.

much

geometric

than

more

they

as

including radar and microwave
items; flight instrument cases; air¬
craft ground handling equipment;
a wide variety of tanks for storage

trucks,

Rosenberg is engaging in

These

include metal .cabinets
electronic equipment,

for housing

Planning Co. Opens

PLAINFIELD, N. J.

plants and automobile

are

principal offices in Phila¬
delphia, Pa., is engaged primarily
in the business of fabricating a
products

Both cen¬

ing the last 50 years.

efficient

Northeast Metals Industries, Inc.,

with its

variety of metal products.

energy.

good share of that per capita
by increased efficiency
in the use of fuel, as we have dur¬

power

ciency.

our

worth of coal and

stove,

worth

about

energy

of shackles

one

sion, and working capital needs,
including the development of new
products and
the relocation- of
or another.
which we plant facilities for greater effi¬

in

put us

certainly
"Business Week"

scientist

"With

of

was,

the

would

be used by the company for
the payment of bank loans, expan¬

almost

probably exaggerated figures:

be feasible.

before

would

Aug.

named

though

even

might be lower, the in¬

who

will

matters in general perspective by

on

known

one

cost

century,

must all unite is the maintenance

a

similar gain in the

control,

kind

The

increase

to

vestment

type of process and it

the

far

so

has

date

to

the fission
is

smaller
of large

of

ago,

be much higher.

233

developed,

one

capita demand for energy is in¬
creasing at an accelerating rate,
and we can no longer take care

certainly be ex¬
tremely complicated and difficult

where uranium 235,
uranium

fusion type

almost

fuel

or

a

were

many

pro¬

the fact that population normally

tral

might add that if
process

type of process in contradistinction
the "fission" type of process

to

produced

ma¬

terials available.

are

and this
should certainly entitle us to con¬
tinued freedom, even though there
a

problem during the next
half-century than it has during the seph Rogers and John R.

ratio,

ing at

goiipg on in this field.

nearly

a

to

Net proceeds from the financing

growing demand at moderate cost

SAN FRANCISCO,

one.

bentures and 15 shares of common

stock, is priced at $100.

financing,

wonder why the

may

demand will

fuel

the

possibilities of fission, which
has the great advantage of start¬

competitive industry has
its ability to meet

for

spective growth in population and

improbable

the

Our

over.

us

You

whole idea of power from atomic

Most of those who did that

present

our

a

early work turned with relief to

radioactive

atomic

pipelines.

of

most

demonstrated

outlook, I, for one, welcome
atomic
energy
with open arms.

years.

The

product

our

Pearson, Murphy & Co., Inc. is

demand will
prob¬ offering in units $300,000 of 6%
convertible debentures, due Nov.
which
needs government help to speed 1, 1963, and 45,000 shares of com¬
it along, all our industry needs mon stock of Northeast Metals In¬
and asks is continued freedom of dustries, Inc. Each unit, consisting
of $100 principal amount of de¬
enterprise and fair tax treatment.

this

For

Securities Offered

won¬

Fane has formed Investment Plan¬

in

through

a

continued growth in

solve

of

amount

tion which may be very

stantly the boundary between dif¬
ferent pioducts being pumped

of

certainty of

lems. Unlike atomic energy,

decline and breeder
reactors will sharply reduce pro¬
spective uranium requirements for

supply low cost

in¬

indicate

to

The

business.

certainly

and partly to the unex¬
fission, say, 15 years ago. Actu¬ pected increase in birthrate since
the
war.
The present outlook is
ally, however, the possibilities of
fusion were known several years that the growth in population in
before those of fission, and much the next 25 years will be about
scientific
analysis has been de¬ equal in numbers to that in the
voted to it over the intervening last 50!
On top of that, the per

used

branch

the best

in

are

able

be

the

tends

was

rapidly

so

crowded

be

past

than

However,

than doubling in the next
years) that the ultimate prob¬

ration of controllable power from
this source is inherently no more

today

but for
crossing will

now,

the

future.

more

25

of

have

Some

cutting

on

time

in

wear

optimistic

the

expanding

tracers

sensationally

from
uses

in

the country's needs for energy are

—

measured in many

these

other

far

fields

raw

necessary

made

increased travel

means

be

ability of the

which will be largely powered by

zation

decade

ond
most

sec¬

Northeast Metals

of

derful

sometime within the

cross

present

have

why I feel that you
the
Independent

see

to

by-products, and the ready avail¬
terials

can

gentlemen

Petroleum Association of America

lem

of energy

amounts

larger

you

plants in typical U. S. loca¬
tions the two curves seem likely
power

Probable Impact

21

(2205)

Broadway, New York 6, N. Y
TWX NY 14777

(2206)

£2

The Commercial and Financial Chronicle

r

.

Thursday, November 24,1.955

...

reminiscent of that of the United

America's Role in World Prosperity
By FRED F. FLORENCE*

Kingdom in the last

President, The American Bankers Association

/..j
11 '

ABA President, describing

^

our

taining world prosperity, stresses the

domestic

L

of

£

of keeping the

urgency

of civilization, wiih

of Western ideals

valuable by-product of

both at home and in the free world.

great promise for

people, and

our

be preserved by a strong

and

Our

world at

has

of

on

shoulders

our

Western

primarily

be¬

emphasis

of

the

measures

cause
u n

aralleled

p

of

success

e n

for

provide

o

the

mate¬

rial needsof
our

own

ple,

to

peo¬

tribute

the

to

well-being
other
and

'/

con¬

of

nations,,j

to

Fred

create

In

force

and

serve

as

Florence

F.

that

defense

national

strong deterrents to

ag¬

gression

by the enemies of free¬
dom and justice.
Although

position of lead¬
ership is similar to that of other
great
nations
of history,
it
is
unique in that the world has be¬
our

organic whole, in which
important events in one area can

come

an

in

of the

the

.

furthermost

earth.

corners

Especially since the

beginning of the Twentieth Cen¬
tury, all parts of the world have
gradually been drawn more close¬
ly together. No event in history
match

can

given

the

this,

to

terial

dramatic

stimulus

of integra¬

process

Of Communism.

These

first

use

the

close

World War.

have made

fice;

something more
in
deterring

justice

in

ca's

role

a

a

us

of
well

policies and actions
the decisive factor
in the preservation of world peace
and

the

our

be

continued

existence

of

Western civilization. The possibil¬

of

such
far-reaching
and
shaking
consequences

world

makes
to

appraise

carefully the im¬
policies and actions on

our

well-being

of

neighbors

our

abroad.
Ultimate

Our

founded

freedom.

justice

on

Because

we

so

and

desire

and because we have rec¬
ognized
the
responsibility
for
helping others less fortunate than

the past decade

presented

the

free

have

we

world

with

gifts totaling some $47 billion in
goods and services.
This era of
began in
1945,
provided urgently need¬

we

short-term relief and rehabili¬

tation of basic economic processes
in
Western
Europe and a few
other countries.

postwar

This

assistance

phase of

our

followed

was

by the Marshall Plan, which called
for large-scale assistance to pro¬
the

mote

Western

of grants rather
With the increase in

means

loans.

world

of

recovery

Europe by
than

is

before.

ever

tension

in

1949

and

espe-

ciallv after the outbreak of
fight¬

ing in Korea
phasis

in

June

shifted

was

trustman

1950—em¬

toward

the

to

and

former

a

National

Secu¬

rity

Council, expressed
thought in these words:

this

trial

developed by

as

and

genius,

indus¬
initiative and

scientific

is

our

greatest

our

asset

and

greatest power. Here is an un¬
paralleled event in world history:

our

the

culminating

productivity

of

America.

Ibe

address

24th

by

Annual

f'ontinent

Texas,

Nov.

Trust

4,

for

needs

our

these

materials

is

being satisfied by foreign sup¬
pliers. Almost all of our consump¬

Mr.

Florence

Meeting

of

Conference,

1955.




the

This

increased

reliance

for¬

on

Economic isolation—like
cal

resources,
such as coal,
steel, wheat, cotton, and so on; our
ability to produce and fabricate

in

mass

quantities, because of the

of

the

women;

laboring
inventive

scientists;

our

tation

system

together,

managements and

our

our

men

and

genius

of

vast

transpor¬
all these, taken

our
—

make

uo

a

of

the capabilities
Communist regime.
More

the

than the atom
nent

bomb, this preemi¬

industrial

productive

ability

of

the United States is the
wark of peace in the world.

"To the extent that

dissipate the

or

tial

of

power

bul¬

weaken

we

enormous

industrial

heres in

poten¬

that

in¬

American system, we
invite despotic rulers to take the
our

despot's
last
long
chance
and
again plunge the world into war."
These

they

free

words

are
thoughtful;
meaningless; they are
inspired, for they empha¬

with

clarity
our

great

that

dependent
of

forcefulness

the

upon

economic

world

and

today

is

the preservation

might and mili¬

tary potential.

of U.

Mida

and
depends

Although
total

even

foreign trade
only about 5% of

national

trading
free

output,

partners

world.

A

purchases

trade

mestic

serious effect

Brazil,

with

coffee,

Chile

of

which

abroad

on

its

I propose to

begin by discussing
importance of banks to the

the

do¬
a
as

large exports of
its fertilizer,;
with

essential

to

sustained flow

a

which

in

more

areas

better

and

equipment

and

ma¬

is

so

elevation of living
leading invest¬
ing nation of the world, with
nearly $27 billion of private in¬
vestment abroad, other sectors of
the world look to us to help build
to

necessary

their

an

As

the

productive

al¬

processes,

though admittedly the progress is
when

slow

local

favorable

not

conditions

to

capital

are

invest¬

ment.

ships, it can be readily understood
economic developments in

why

United

abroad

States

with

are

followed

interest and
clearly illus¬
trated by the experience
of the
spring and summer of 1954, when
our economy had receded slightly
from the peaks of the preceding
year. At that time the fears of the

anxiety.

world

these

great

This

were

aroused

of

depression

reverberate

whether

over

signs

were

fashioned

was

old-

an

that

would

the world.

around

fears

feeling that
perous

States
a

were

conditions
be

curtailment

that

other

foreign
a

in

in

a

the

our

pros¬

United

by
imports and

would

feel the

cutback in vary¬

A decline in exports
countries would lead

fall in their

own

Continued

production,
page

States

36

banking

par¬

States banking institutions engage

ties

inter¬

to

national

f i

nancial
that

In

it

to

is

that

of

opened

up

belief

L.

A.

Mills,

that

Jr.

in

usefulness

the

place in

intenational banking

business in the ten years since the
end of World War II hostilities. In

operation

outposts

granting

not

of

have

the geographical

are

accounting

for

the

largest

statistics

trade,

of

United

States

growing com¬
mercial interests give cogent rea¬
our

for the extension of

bark¬

our

be-:

the
be¬

experience

to

and

which,

only

our own countrymen, but
foreign friends, can turn ad¬

our

In

truth, the heart of banking at

ing

institutions

they

vantageously.
home

sons

our

information

of

pools

period between December 31,
September 30, 1955, for¬
eign offices of United States bank¬

the

of

only for
but also

credit,

of

sources

the

1945 and

in

once

come

not

in

foreign bank¬

our

banking establishments abroad, in

come

foreign

advan¬

foreign

of

follow rather than
initial growth of interna¬

an

primary originators.
This point is well illustrated in
the development that has taken
our

mutual
and

activities

lead

not its

are

own

tional trade does not detract from

trade
been

the

to

our

The fact that

that

has

and

trade

tage

ing

follow

foreign

United

of

businessmen.

fair

say

banks

estab¬

once

offices

foreign

way

connec¬

tion

Second,

intermediaries in fostering two-

as

-

trans¬

actions.

the

abroad

or

is the ability of
apply a broad ex-,
financial matters to

banker

to

work

the

to

in

that

ways

ultimate

benefit

of national and international well-

being. Stated more prosaically, the
foreign banking facilities of
United States banking institutions
participate
importantly
in
the,'
development of our foreign trade,
of this

by

way

of

their

advisory function

officials

and

credit-

the

ing services abroad. The increase

creating actions that follow there-;

since

from.

in

1945

the

business

of

foreign banking offices that
then in existence is

the

as

of

rate

as

the

were

impressive

increase

in

newly

analysis of the causes for the
growth in the foreign trade of the
United

States

the

to

as

extent

which it

was

quences

of natural forces,

war-born, the

product of vigorous

to

conse¬

the

or

promotion is

beside the point of this discussion.
What must be noted is that various

circumstances

place

the

have

United

combined
States

to

the

in

forefront of the world's suppliers
of goods and
services, and that
achievement

of

Thus, while banks are notv
regarded as the primary;
originators of foreign trade, they
certainly
help
to
increase
the.'
to

be

level of such trade

established offices.

this

position has
been reflected in the expansion of
our
foreign
banking
facilities.

The

United

in their

which

are

the

needs

and

the foreigners doing business

their

of

own

nationals

in their lands.

been

a

brings

dealings,

so as

to channel-

tions

that

will

do

most

to

foster-

multilateral balance of trade
ditions

and

conductive

con¬

distortions

prevent

to

potential trade im¬

balances.
Present U. S.

Foreign Trade

Position
A

look

the

at

present

foreign

trade

position of the United States
is illuminating. For the first half
of

1955

nonmilitary exports
services came to $9.5
billion while our nonmilitary im¬
our

of goods and

ports of goods and services came

The

foreign offices of United
banking institutions play

States
an

has

currency

foreign trade in those direc--

our

have

highly developed
of
their
own
equipped to serve both

dollar

States

;

the

that

into focus the necessity for the
judgment and discretion that must
be used by the officials of UnitedStates banking institutions abroad-

hosts to United States banking in¬

systems

the initial'

once

been made.

however,

fact,

persistently hard

What must also be remembered is

banking

has

trade contact

that the foreign countries that are

important

national

in

part

financial

termediaries

inter¬

this

context

for

in¬

as

serving

credit needs abroad of their

the
coun¬

and also for serving

trymen,

reciprocal

needs

of

the

the
foreign

nationals in whose countries these

dollar

are

as

domiciled.

the world's

With

anchor

the
cur¬

the complementary advan¬
tages of these arrangements can¬
rency,

not be overstressed.

The

clearest

to

$7.1

in

an

lion.

billion, thereby resulting
surplus of $2.4 bil¬
export surplus of this

export
An

relative
for
an

magnitude has been true
years past and has been
important stimulant of our do¬
some

mestic

prosperity.

mention that in

exports

1953

represented

to

be

merchandise

6 6%

and

ill

1954, 7.4% of the total production
of United States movable goods.

Obviously, exports make
cant contribution to

conclusions

emphasize

To

that point, it is only necessary to

our

a

signifi¬

total

eco¬

reached from the expansion of our

is also revealed
in the fact that in 1953 goods and

foreign

services

banking

facilities

are,

nomic

4.7%

*An

address

national

National

on

United

,

the

accompanied

nations

ing degrees.

on

retreat from

a

would

based

ex¬

lished,

various

offices
These

an

banking services of

institutions.

stitutions

In view of all of these relation¬

the

of the

the

An

of investment funds to those

nationals abroad with

domestic

ad¬

profitable to provide

between

Com¬

maintenance of prosperous

becomes

intermediaries

sion in Brazil, Cuba, and Japan
standing out. As is fully reflected

orbit.

chinery

banks

our

conditions in the United States is
also

tension

of

financial

part of this increase, with expan¬

dairy
products, Australia
its wool, as well as many

The

our

role

and

it

areas

Zealand

munist

rives from the

as

a

have

outside the

visable

de¬

with

export trade

nation

our

with

countries

This

foreign

problems

their

other

a

obviously

a

point in the devel¬

our

will

might

Denmark

of

the Far East

such countries

and

some

opment

ac¬

the

our

first, at

foreign trade of the United States.
importance

on

foundation.

in

our

of greater

foreign trade

secure

and

accounts

practical

New

with

balance their international

to

perience

is

of

present objective

says

increased

throughout

curtailment

insignificant in
economy
could

appear

foreign trade position, and

fiom 78 to 116. Latin America and
our

for

occupies

position in the world economy

more

matter of survival for many

to
now

of today. Our
the free world is
the rest of the

us.

counts

of

S.

The United States

Houston,

world
upon

impact of such

an

before

the

world

upon

are

almost

size

in

ible

dependence

potential

that overshadows

politi¬
simply not feas¬

isolation—is

standards.

"Our

The Predominent World Position
*An

of

foreign offices of U. S. banking

reduce their needs for U. S. aid. Stresses
importance
U- S. foreign investment as placing our

the

rapid expansion in production.
Consequently, a growing portion

the

foreign trade. Furnishes data regarding

materials.

of essential raw
materials has not kept pace with

"The productivity of the United

States,

giving

postwar
ed

prosperity

September, Robert Cutler,

consultant

skills

peace,

in

in

fellow

capacity of

Goal

Our ultimate goal is a peaceful
world

tion

-

it especially important for

pact of

when

icountry. Ameri¬

world

greater today than

a

of events has thrust

course

may

we,

in

Speaking before the convention

success

the

our own

we

econ¬

of the American Bankers Associa¬

as

heavy responsibility—
responsibility so grave that the

us

strong and stable

a

defen¬

The

ity

only be realized if

can

omy

the atomic age.

a

needed.

aggression

raising the standard of liv¬
ing of the friends of freedom and

atomic

of isolationism

upon

is

and in

Second

national

Eame

important contribu¬

an

Success

tne

It marked the formal

programs

tion toward strengthening the free
world. Yet, they alone cannot suf¬

of' the

of

and

policy and, at the
time, the formal opening of

burial

sible

raw

of

should be to consolidate gains made in
ways that will enable

Domestic output

substantial,

policies

by

at

these four stages

to

wants and establishing a
front against the scourge

strong

maintain

the

of

world is to fulfill the hopes of its
people in providing for their ma¬

tion and growing interdependence
bomb

preservation

supply of

foreign economic assistance, we eign sources of supply has been
have encouraged the flow of capi¬ accompanied by an enhanced im¬
tal abroad—through both private portance of foreign
markets fcr
own
and public channels — to build our
products. We are ex¬
productive
capacity
and
other porting about one-third of our
facilities.
And recently we have cotton, one-fourth of our tobacco
emphasized a principle of primary and wheat, and one-half of our
importance—that a balanced and rice.
Significant percentages of
healthy growth of world trade is machinery, tractors, and trucks
an overriding necessity if the free
are sold abroad.

readily and quickly affect condi¬
tions

military

of

source

role

foreign countries

of

military

a

addition

present U. S.

gradually is

economy

significance.: The fourth phase of tion of tin, natural rubber, nickel
policy was initiated in Janu¬ and manganese, over half of that
ary, 1949, in the form of the Point of wool, lgad and tungsten, and
Four Program, a plan designed to almost half of that of copper and
stimulate the long-range economic zinc are imported from abroad. In
growth of underdeveloped coun¬ addition, we depend on imports
tries by providing technical assist¬ for all of our consumption of such
ance.
products as coffee, tea and cocoa.
v-yv.

enabled

t

u s

the

for

the

on

own

the

institutions in serving

world's

our

-

terpri.se, which
has

was

the

peace, the economic effects were
recognized as being of tremendous

our

system of free
business

While

Europe.

discusses

of
we

becoming increasingly dependent
upon foreign trade, especially as a

expansion of military assistance
and
a
strengthening of the de¬
fenses of the Far East, as well as

to rest

Pointing out that banks are not primarily originators of foreign
trade, but follow its development, Federal Reserve Governor

absorbing

15% of the world's exports.

Our

country now occupies a
position
of
leadership
in
the
world.
The mantle of leadership
come

market for

abroad,

by other countries.

best

America.

prosperous

Member, Board of Governors, Federal Reserve System

largest investor,
while providing at the same time
a
growing outlet for investment

the

peace can

By A. L. MILLS, JR.

of

commodities.

tremendous

a

from

the

are

Concludes future holds

a

the

We
are
the
largest supplier
goods to other countries. And

constantly rising standard of living,

a

of

producer

agricultural

are

about

strong and prosperous. Says this is means

economy

preservation

We

goods

nation's dominant role in main-

Finance and Foreign Trade

We

century.

third

a

important

an

many

National Bank, Dallas, Texas

President Republic

over

world's manufacturing output. We
are

*

for

account

York

by Mr. Mills at the Inter¬

Finance

Session

of

the

42nd

Trade Convention, New
City, Nov. 14, 1955.
Foreign

activity,

as

exported

and

in

represented
of gross

1954, 4.9%
national product.

However, the disparity between
the

amount

of

United

States

ex-

182

Volume

ports

and

covering

In

deficits

been

States

the

cases,

met

through

Government

first

billion

$2.5

the

the

for

half

grants
1955

of

than

more

offset

$2.4 billion favorable balance
trade and

non-military services

been

that

has

as

result of these kinds of pay¬

a

referred

to.

Partly

ments, the difficulties

implicit in

the

trade

otherwise
of

ances

adverse

great

a

U.

of

can

in

placing

the

the

United

States

secure

foreign

The

S. Investment Abroad

Other actions that

be

foreign
on

focus

foundation

trade

In

$3 billion, to reach
billion.

$10

The

fact

billion

abroad

rations

by

that

have

by nearly

been

United

sustaining and

since World

War

peoples,

corpo¬

II

our

in

the

who

customers

foreign

process

to

living.

In

of

gives

United

then become

for

more

States

diverse

likely
lines

products.

Both

governmental and private

actions

doing, greater purchasing power
is placed in the hands of their

invested

States

this

so

than

more

importance of

raise their standards of

total of $26 V2

a

of

investments is the help given for¬
eign nations to become more self-

1954, United States private invest¬
ments abroad increased

size

productivity of recipient
foreign nations. Broadly speaking,
the lasting benefit of our foreign

our

activities.

investment

the

foreign business.

domestic

more

on,

of

our

investments lies, of course, in the
stimulus
that
they give to the

help¬

a

idea

facet to

obstructing foreign

Private

ful

some

of the bar¬
trade.

many

(2207)

bal¬

countries

some

remove

riers

trade

military expenditures abroad,

which

on

their

such

some

have

United

at

re¬

trade

through ' conventional

means.

ancl

of

The Commercial and Financial Chronicle

some foreign coun¬
have experienced dif¬

in

deficits

.

of

that

ficulty

.

.

been

balance

the

problems
tries

5484

has

imports

in

flected

Number

the

have

past

year

been

taken

within

to facilitate United

States investment abroad. Partici¬

pation

the

by

United

in
Corpo¬
ration has been approved by Con¬
gress and will have an indirect
bearing on the flow of United
States funds into foreign invest¬
ments. Congress has also approved
an expanded lending authority for
International

the

States

Finance

the Export-Import Bank.
tion
K
of the
Federal

Reserve

Board has been amended,

liberal¬

Regula¬

izing the conditions under which
United

States

banking

tions

their

conduct

can

this

connection, it is
interesting to remark that five
United
States
banks
recentlycombined

to

Overseas

form

medium-term

credit

exporters

of

the

provided

by

the

was

Last

month

to

announcement

given of the formation by a
of

group

investment

houses

Continued

corpora¬

on

for

period by over $600 million.
Important as United States aid

to

to be, and continues
general betterment in

proven

be,

a

economic

conditions

abroad

has

been the chief factor for strength¬

ening foreign gold and dollar
for

and

serves

ability of

the

re¬

consequent

foreign countries

many

to meet pressure on

their balance

of payments.
The

is

It

what

Task

now

Ahead

ask

to

necessary

have

that

trade

consolidated and then

be

can

by

the remarkable gains
been won in the field

means

of international finance and

tended

in

that

ways

will

ex¬

enable

foreign countries to balance their
international accounts and reduce
their

needs

United
eral

for

States

which

the

capacity

willingness

United

States

abroad

because,

depend

supply

to

for

in

of

sev¬

of

import

the

from

fundamentally,
exports

our

the

on

are

question, of
important is the

most

and

payments

There

this

to

answers

forms

some

aid.

dollars

for

payment

must

that

we

im¬

our

United States imports of
goods and services continue to rise

ports.

impressively,

and

in

sented

and

in

3.8%

1953

repre¬

1954, 3.7%
product; but
which
percentages,
it
will
be
noted are considerably below the
percentages that our exports bore
to gross national product in the
of the gross national

same

years.

How

trade

to

crease

foreign

encourage
a
will preserve

that

vital

our

and at the

in¬

and

export

business

time work toward

same

evening out the disparity between
total of our exports and that
of
our
imports is undoubtedly

the

close to the
the

of

of the

core

objectives
Foreign Trade

National

Council.
:

is

-There

argument

no

further

a

expansion

but

of

that

Take

United

a

load

--

T.r.:'Y**

v

off your mind

States

imports is to be sought
However, increased imports
are not a complete solution to the
problem. An expansion of multi¬
lateral
trade, facilitated by the
lowering of international trade
barriers, is one solution that holds

after.

You

can save

your overseas

taken in the direction of
expanded
multilateral
trading

worrying for

implies
foreign

when your

step

lesser

dependence

by

nations on
the
United
States to supply dollars as a pre¬
ferred

eign

of

means

payment

in

is

for¬

taken

has

that

from

been

the

in

and which is most evident in

area

toward

moves

vertibility

the

during

past

the

gards

year

United

which
as

you

of

aware,

are

import

restrictions

steps

toward

re¬

even

get both

the

same

messenger

run

out the

right out on the

car

door and right

down the hatch.

your

~

Even the stevedores worry

telegram

stuff stowed

shipment arrives and another when it

might

can come

about getting

your

properly. Some of them have been

working there for three generations and they
take real

your cargo

messages

a

by

lot of

For

because things move fast

an

pride in doing things well. You'll find

things

are

different at Newport News.

interesting booklet about it write to:
1

Chesapeake and Ohio Railway

West¬

on

the relaxa¬

restrictions
the

that

and

transfer

broad

have/been

currency

which, when
a

you a

goods

The

taken

convertibility,

finally achieved

international

basis,




World Commerce Department

NEWPORT NEWS

Chicago 4. Ill

327 So. LaSalle Bldg.

Detroit 26, Mich...525
Richmond 10, Va
New York 7, N. Y.

Lafayette Bldg.

909 East Main St.

Stockholm, Sweden

ON

HAMPTON ROADS,

VIRGINIA

<

NEWPORT

NEWS, VIRGINIA

it's easier

233 Broadway

on

will

SHIP THROUGH

Newport News, Va.

of

capital have been the most fruit¬
ful

They'll send

so

Germany.

As

tion

and

you.

Newport News. The tracks

piers

made

Kingdom,

Netherlands, Belgium,
ern

and

shipments through Newport News,

con¬

been

significant!

especially

are

currency

have

that

in

by handling

this
\

the

worry

vessel is in port when

arrives you

progress

recorded

lot of

safely stowed aboard.
If your

transactions. Encouragement
be

can

a

Virginia. The people down there will do

considerable promise, in that each

a

yourself

Kungsgatan 7

and

and

foreign banks of the Transoceanic

this

has

domestic

similarly
Export-Import

type

were

increased

American

Corporation,
set up to provide

which has been

Bank.

the

Finance

the gold and dollar reserves of all

countries

"■

•

latter

mitigated; and after allowance for
various less important items fig¬
uring in our balance of payments,
foreign

foreign

banking business.
In

23

saves

money

page

35

24

The Commercial and Financial Chronicle

(2208)

Continued

from

(2) We in America believe in signs that the nature, capacities ress. In the next decades

3

page

high wages, high productivity and
high
purchasing
power.
They
must occur together. One without

Achieving Goals oi
m

the other defeats its
-■

_

*

m

IHtATliaTlftHa I
mind

and

apply

ourselves

1I3QG
fJ1

.

thinking

our

well

as

to

are

we

,

to

as

understand

to

growth

if

steady,

others

and

gradu-

ally evolve solutions of the

many

growth.

and investment

obvious

Essentials

to

Growth

International
international

International

!tonan
;

and

world

u

only

real hold

the countries of the world

as

which

constitute

the

world

adopt, individually at
home, economic systems and monetary policies which promote the
—

growth

of

production,
employliving standards within

ment and

their

boundaries.

own

These

things well started, the resulting
pressures
and opportunities
for
expansion of world trade would
be

almost

irresistible—and

would remain

lubricate

there

only to regulate and

the

mechanisms

by
which goods, services, and capital
flow

national boundaries,

across

Each of

in short, must first

us,

take steps to put our own national

house in order if
to

create

thrive

really

we

conditions

world Jtrade
and

mean

under

which

investment

and

Many

expand.

can

coun-

objective, their tar^

there

sure

am

political

is

single

no

or
economic system
all, perhaps, our own

least of

—
—

and

mies

econo-

throughout the world.

certain

it

all

answers,

the

our

own

not

to

is

that

It

knbw
of

some

trying problems,
those of other

mentiop

countries.

to1

even

most

And

don't

we

is well in

this

con-

nection to remember those recent

words of Secretary

Dulles of

our

foreign policy, "Many things will
right without our help and
many things will go wrong that
we cannot help."
go

But

in

the

of

course

visiting
foreign; countries since
World War II, it is my observation
30

some

that

every

system must

successful economic
be founded on one

indispensable concept
Growth

the

-

Growth,

—

idea

of

the

job

which,

constant

(4)

this idea. The climate of the

upon

in

We

by

0ped

and

used

techniques to
elsewhere

and

America

believe

in

credit, and have devel-

consumer

a

installment

sales

degree unparalleled

the world.

in

Without

economic indices would be

fraction of their present level,
new

for

industries like television,

example,

would

still

be

in

believe

in

Middle Ages was not favorable to
its development. And the men of

their infancy.

the Renaissance, in their prodigious accomplishment and 111
their reaction against medievalism, looked back mentally to the

more

fact of extensive leisure

Greeks and the Romans.

duced great

(5)

in

We

America

leisure

through

for

people
short and highly pro-

a

ductive work week.

And the very
has

pro-

industries which

new

world [

least

the

where

and

made

been

its

with

idea,

great

progress
where, as in

plug of our economy. It keeps

us

endlessly, urgently searching and

centives for every element of the

to achieve it, is

economy

abso-

an

lute must in any economic system
that is going to prosper in the
world's economy.
This

may

seem

to

obvious

so

warrant

been

has

idea

the

But

ideal.

planted; and until people prefer
hunger rather than plenty, disease
rather than health, and slavery
rather

our

it will

re-

of the most potent,

and

freedom,

than

one

^

as

older

status
quo

develop

—

change
as

cartels

barbital

thisvery

Filling the Economic Vacuum

Created by War
unbelievable

almost

eco-

of the past decade
grounded partly upon

nomic progress

been

has

filling the economic vacuum ereated by

the war and pailtly upon
indispensable
concept
of

this

growth, with incentives for investors, workers and management to
plan and strive toward its realization. And the rate of growth in
the

future

depend

will

heavily

the economic climate which

upon

the nations of the world select

—

for

elect

accurately,

more

or,

themselves in the years ahead.

Sched

or

com-

benS

as

it

such

should

for

is

so

im

These, then,
our

the prime ele-

are

American

And I

brand

of

am prepared

to

agsert

auite

finer

combination

dogmatically

that

a

economic

of

principles and concepts just does
not exist under the

modernization

Seased

creasea

ment

excitine
exciting

new
new
new

some

enmpthfnj#

distinguishing term
inHipatp

tn

to^eo^
few

naVtfcimtP

beneffts^^
S' h?,
I

submit

hLs

all

that

sun.

is our "People's Capitalism" the
political environment in which it

as

functions

either

can

augment

or

obstruct its effectiveness. Andnl
deem it only fair and right to observe that the present Administration in Washington, by its very
evident

purpose and

endeavors to

do those things which will stimulate
age

business

confidence,

encour-

productive investment and
our

money

oTfa^lities^fnr^n

by its

as

technical assistance

own

our

other

in

programs

of

parts

the

nmwpcf?

Asia and Africa Achieving
Economic Progress
Economically,

Asia

Africa

and

have

and

fnr-

tor

in

old

us




such

seems

a

almost

difficult

record

cause

they

are

long

as

Not be-

than

smarter

we

but because the concepts and

are,

models of

our progress are on

dis-

throughout the world; not
just our products in the markets
0f the world, and in international
trade fairs; not just our scientific
and technological progress which
oiay

we

are

sharing through technical

assistance

and

the

visits

of

pro-

of

hundreds

of

cannot help

we

but be struck by man's continuous
and

often

too

Hopeless

hopeless

because

struggle.

there

was

no

prospect of conditions getting any
The ancients thought that

and

followed a preordained
repetitive cycle. In the Mid-

dje

Ages

thought

practice

and

cramped bv the common be-

lief that

man

was

sinful

a

cent times that it became

it did the Western world.

America's

brilliantly

inventive

gigantic supermarket where countries may shop for political and

born

ture,

It

was

not

crea-

here

trouble

to

on

until fairly re-

possible

to think of an immense future

for

mankind, the conquest of
material world through sci-

mortal
the

ence,

and providing the conditions

for

good life for all the peoples

a

of the world,

Making This Life
Yet

Better One

a

today hundreds of mil-

even

lions of people all over the world
getting neither joy nor satis-

are

in

its

fruits

we

that

must,

the

best

truth

merit

Distinguishine Features of Our
CauitaUsm
capitalism

epitaph for a French lady whose
moral behavior was not wholly

exemplary

and

nPRnnvrav

liAt!

e*1€*
l?h8

is

we need not fear
the economic competition of com-

so

is another story. And
should never forget that communism is not just a result of the
economic position of many counof

course,

we

tries today; it is itself an active
obstruction to economic progress
in many parts of the world.
progress will

come,

then, at

an

accelerated pace, because the models and the idea'of progress exist,
As the American poet

Carl Sand-

&

.

jca- .1 do not say this boastfully,

but ™ the sense that as a model
for the most productive economy
tb? world has ever known, we are

^ScSSrlv8 Impo^tan^^at' this
gta^e of hiJtorv that the world not
oniv
imdeS
only understands the le.ults 01
run> ItS base 18 n0t imperialism

£ut industrialism;
profits
havP. not been from iolO"ia«sm
but from productivity: and its aim
15 not exP'°itatlori but building
up new markets and creating prosperous customers.
r.pnnlp«j

.

..

apparently,

who,

lived more by her heart than by
her head. The epitaph read:

r

p

the market place,

]Zed thel ZZs anTout

Ind lt
and

m

real

table exception which is evidenced

economic and technological models of progress. If we believe, as

the

condoning

Without

lady's

that I am

say

very much in favor of making
this life a better one, with a little
more paradise on earth for millions upon millions of people, here
and abroad, who are still unacquainted with the joys of living
beyond the level of bare subsist-

ence. And in my view it is the
business leaders of the world, beyond all others, who can bring
about this end. For it is business
leaders with the capacity to see

the economic possibilities, with
th.e couraSe.to back their vision

with laArge investment, witn the
ablbty to organize men into productive teams, and the wisdom to

°f tbe enterprise

sh^ th*

with consumer, worker, investor
and manager alike —it is these

have, and who can
mch broader and deeper
f,.ont, project ever upward the
standard of living of their counwho

men

a

?n

trymen/

.

.

.

u

that'man needs. And we
In
^ 1S ?ur 3°b> gentlene'Ver had here or anywhere men' to lift our sl£bts' to futuretL teaThers orient our thinking ana our cor^ artists
the poets
the scien- Porate planning. Thus, and only
tists' the ^cial workers, the econ- thu.s>
Tw Slendidlv

houging

omists,

the

statesmen,

that

the

world needs.
,

.

1

maintaining the mow sple didly
nsmg trend of production investment and tiade—and he. ee

living

In the long run our material standards _ in America and
progress promises to give us both. throughout the free world. In a
Through gams in productivity, parj se
the kind o£ lives
ticularly through increasing auto- ou/chndl.en and our grandchildren
mation, and through the develop- wjn Uve is in the making now.
ment of abundant new sources of And because the pattern is so
energy, such as atomic fission and| ,
j ours to determine, we must
fusion, we are approaching the do5ouJ utmost in their bahal£.
time when

we can

afford to have

because

each

conmonent

is

aimed

91rL™\e mat tneir omy cnoice is

De^use
eacn component is airaea not between the system they
oriented

and

toward

one

thing—

vigorous growth. Let me mention
the principal elements.

may
no^ know and call capitalism and
communism.
And
to
help them

niwavs

heen

snlendidlv

(1)

gins.

We

in

America

believe

in

Fortunately,

nave always been spienaiaiy pro.
ductive workers m any society,

are

many

(Special to the financial chronkm)
pn

_

T11

v

„

is

n

CHICAGO, 111.—Ben ve.son is
fear of now with Arthur M. Krensky &

particularly important
factor in insuring our future progThis is

there

Wit^ Arthur M. Krensky

nro-

tern work.

is

history's

millions of people

earth.

as

not small volume and large mar-

become
It

500 000

some

that it won't take them

large volume and small margins—■

has
law.

a

first aopeared on

man

a
long way to come. But it
is encouraging to believe, as I do,

for

natural

since

years

were

to realize that the idea of progress
itself
—
the
concepts of

Progress

It is

auick sten.

one

but

be

the time to take

second

a

mankind

and there is never any
choose rightly, it is important that over-production here.
This is a
they know the fundamental con- luxury that society has never been
ditions which will make the sys- ab*e sufficiently to afford.

commonplace, that it

third of

the last

us

r

businesses.

a

would

generations

better.

*

-

prospects

^wo

world have also borne this kind

B+ut what are the distinguishing are making a portentous choice, many more creative workers in
fm ' investinvest~ ism? They
0t can
ourKAn?enf^"
capital- It is important for them to ap- the educational, philosophical,
tor
be simply described Dreciate that their onlv choice is moral and spiritual fields. These

businesses

tells

of fruit.

and

modern capitalism but what makes

our

producRvRv
productivity,

in

the physicist

year

f it should be added that potent munism. The political competition, conduct, I want to

regulate

American capitalism is badly in
need of

b

be

And

_

designing
eco"
nomic
rules
of The
road
that
Powerful
provided
poweriui incentives
incentives Ire
are provided
to

system

have
contributed
greatly to a better understanding
in Great Britain and in Europe.

credit burg puts it in "The People":
If growth is the essential char- supply as to promote growth and
«The fi
t wheei mafcer saw a
acteristic of a sound, dynamic and development-without inflation, has wheel carried in his head 0 wheel
prosperous
economy,
how does provided a climate in which our and one dan found his hands shapone get it? What acts or attitudes
Peoples
Capitalism"
could •
a wheel
the first wheel
The
create the best climate for its descarcely fail to thrive.
fi Jst Waaon'makers saw a waaon
velopment?
Here
again
the
I think I have made clear that
of «
answer will not be identical for
I am not advocating the indis- ■ tof wh([t ,
.
Uved in their
all countries or regions. But for criminate exoort. of our American
minds' made the first wagon"
America the answer is found in brand of capitalism. But I would
'.
"
:
'
the elements of our own very dis- like to add one point of correction
nave
tinctive
brand
of
capitalism. f° the astigmatism with which it Amenca, all the electrical energy,
Around the world that term "cap- is sometimes viewed from abroad. a'! the automobiles and reliigera
Italian" is applied to economic History has no parallel for Amer- ^^'t^Vod PanS clotWng
and

statue

as

And

tha

reason

importance

mense

thp

incompatible

petition and
drine and

tendency to recling to the

to

Growth and

quo

are

a

and

our

technology,

better things. Human nature be- of man can do." The world today,
ing what, it is, I submit there is with its improved communication
no substitute for competition.
and transportation is in effect a

capitalism.

passing mention. The fact is, how-

sist

one

Arthur comnton

and the "stick" at once pulling young men is credited with the by an epitaph I once saw in a graveand pushing us along the road to slogan "Anything man can think yard just outside Paris. It was an

ments of

times.

The

techniques. It is both the "carrot"

of

forces,

explosive

than

more

to

single examliken the five

of the universe's ex-

researching for new and better ductivity teams; but also the po- faction out of life and have only
the concept is far ahead of condiproducts, more efficient methods litical and economic principles of the hereafter to look forward to.
tions that will make it a practical of production and surer marketing our "People's Capitalism." One of I am reminded, however, of a no-

systems which bear little or no
resemblance to each other and
ever, that reasonably comfortable which, unhappily, in some counhuman beings, — you and I, for tries have achieved so little that
example, particularly as we grow even communism can compete.
scarcely

istence

you a

should

we
vears

parts of Asia and Africa,

,

and the creation of in-

progress,

acteristics of

our

provide means for entertainment,
dynamic power to move individ- for cultural pursuits, for sports of
uals and nations, and which holds
all kinds and for the do-it-youralmost universal sway over the self enthusiasts.
mind of modern man, is scarcely
(6) And finally and most imolder than the steam engine. Yet
portantly, we in America believe
already it has percolated down, deeply ifi competition versus the
even
to
those
regions of
the cartel. Competition is the sparkthis

So

national

national

and

new

a

jf

even though it replaces try,
and which have been the scene) and as wa g0 back
equipment in first-class condition, as uniformly struck by the char- through the centuries, and read

a

ations in the organization and adof

faster

or

do

can

resulting savings, will pay for ita reasonable time, is a good

at

traditions suggest important variministration

which

and

believe

self in

fertile in their speculations on
human life, somehow failed to hit

frequently

background, experience in
self-government,
social
habits,

first

its

places

of

so

world. Wide differences in educa-

conditions

America

technique,

new

a

our

main

tional

history

opinion between the

on

that is best for all countries of the

climatic

tool,

it

certain

I

billion

in

tremendous scien-

our

dynamic Americans that our system was so tific advance.
little understood may have in fact
May I give

spell

piey

The Greeks, who were

has

but their end

thought,

olution.

tries,

get, is identical.

r

of

Reformation and the French Rev—

taken

including our own, have
important steps in the right
direction. These may not be and
frequently are not the same steps,

the

through

progress

human

—

/fv?
v?
the idea

ryV

h

who has traced

investment will grow and
prosper

market

now,

us

cal

abreast of

fecent origin historically speak- investment

of

Trade
Hade

trade

to

natural and
is of fairly

so

economic, social, politiand
juridical
institutions
our

ing, and to the charges that we
were a boastful and materialistic
people—just
as
a
man
speaks
louder and louder when he is
conscious that he is not being
heard.
The productivity teams
which have visited this coun-

better

seem

keep

contributed to the misunderstand-

economic, and political condition
which

ends but

of

one

the greatest problems will be to

in

We

machine

—

beset.

the

with

improvement

own

and incentives of private competitive enterprise are beginning to be
better understood. Paradoxically,
the realization on the part of many

scrapping the obsolete, regardless
of its remaining useful life. A new

(3)

_

,

and amelioration of man s social,

problems with which world trade
are

change,

and

continuous

they

together

*|

_

,

Thursday, November 24,1955

...

a

Jnc

Co

\

York

141

West

memberc

d

'

"

and

Midwest

changes.

of

jackson
the
,

New
„

182

Volume

Number 5484

.

.

The Commercial and Financial Chronicle

.

Wages, Employment, Politics, and

thought: to

the

threat of war, and even to

Christmas Trade
Pointing out Christmas buying is

families

repeated

have

Christmas

em¬

losses.

ployment and aids business of

which

manufacturer

over

Says Christmas buying thus far
indicates
a
good 1956, "but

the
1955

few

weeks to

England, Penn¬

other

and

their

which

areas

On

for

the

states
have suf¬

years

the good

weather
could

In fact,

1955 rains.
for

be

a

the

change the

September

the

for

same

could be
or
other

reasons.

What

of

balance

factor

in

this

Would

Jesus

present-day

Jesus

would

celebration

to
of

the

able

so

reaction.

those

who

Christmas

use

never

be

Let

need

make

us

them.

for

others—rather

J. Logan Adds to

gifts

Let

LOS ANGELES,
R.

what

Calif.—Donald

Ashton, James D. Barton, Stan¬

His

To

John Hampton, Robert

it is being com¬
Jesus, however, was

is shown by the lesson
during His walk through

may bring to us.
help keep me on the right road
I have put up a Holiday sign near
the Great Babson Globe (the larg¬

est

Jack

these

WHAT

IS

words
A

thereon:

MAN

Laughlin,

Buddy J. Lile, Paul Massari and
Warren A. Robinson are now con--

revolving Globe in the world)

with

D.

There

several

are

nected

"FOR

with

J. Logan

&

West Seventh Street.

PROFITED,

why

reasons

all—buyers, clerks, storekeep¬

ers,

and manufacturers—should be

in Christmas
buying.Christ-

interested

greatly

buying is

mas

good

a

baro¬

meter

the

of

nation's

I

feel¬

When I

ings.

younger,

was

thought that
nation's

the

business
ruled

was

by

sta¬

—

cer¬

tistics

tainly statistics
the

on

Roger

available. Now

Babson

W.

I

is

it

figures,

ruled

but

not

by

I

older

am

learned

have

.

that

wages

credit

and

alone

by

I

am

feelings.

happy to report that

an impartial
study of the outlook for Chrismas

business

feeling

shows

people

our

are

,

good.

May I comment further
above.

I have

the

on

just read the annual

report for 1955 of my great friend
—Dr.

Edward

ident of the

B.

Hinckley, Pres¬

Babson

In

Institute.

this report, he speaks of two kinds
of income which he must give to
his

professors.

One

these,

of

of

is Cash Money with which
he can pay their bills and lay up
some
savings. The other income
which
they must
get
he
calls
"Psychic Income." This is largely
course,

matter of

a

and

feeling

contented.
of

reader

this

humblest

secure,

happy,

think

every

I

paid

executive,

self:

"What

the

to

might

is

Psychic
I

my

come?"

Buying

Determines

Christmas
a

tangible

you

buy

a

present

you

start

ness

cycle.

to

to

go

best

First,

all—to

of

means

for

When

friend,

a

you cause

friend

a

also
sense.

most important

a

or

In¬

Employment

buying

in

much

the
highestask him¬
from

column,

worker

busi¬

relative
in

someone

gift

a

'w-y/A

or—

need.
VrViSy.'.'i

Second,

you give help to the re¬
tailer, providing him with pay for

his

But

his

gets

remember

j

small

portion,

V/AmoPt

that he

two

mm

liwflPvi:' •///////.■

after he has paid for the goods,
paid the wages of his clerks, paid
his rent, advertising,
and other

bills.

mm.
VSSSSSSA

ff

Then there is

Christmas

third part to the

a

Cycle.

In

paying

for

The

the goods, the storekeeper enables
manufacturer to employ

their wages back to the store and

(buy more goods,—thus completing
as

cycle.

When the cycle works

described above, the nation

prosperity.

joys
is

broken

at

the cycle

When

point, employ¬
business (they always
any

and

go up

and down together) fall off.

Then—unless the break is repaired
—the nation suffers

a

depression.

The Business Outlook

for 1956

Christmas buying thus far indi¬
cates

good 1956; but something

a

From her Bedloe's Island vantage

point, Miss Liberty gets a seagull's-

en¬

ment

could happen during the next few

eye

view down

oughfare—an

goods

Readers

a

of

this

column

will

on

later issue.

ness,

It will treat of Busi¬

Inflation,

Retail




Trade,

this

of global im¬

American
and for¬

shores.

highway to world¬

wide ports

is

exporters,

shippers—and jor banks,

a

big job for importers,

Manhattan

banking service—Chase

Manhattan service—facilitate busi¬

If

you

do business abroad, or would

like to,

we'll be glad to show how
Manhattan

Chase

facilities

can

experience

.

;

and

help you. '

keeps in close touch

\

•

with local conditions. Information

THE
is

gathered, analyzed and promptly

made available
in every step
initial

exports

cialists
tions

to

to customers.

of the

way

Then,

from the

financing of imports and

through letter of credit ar¬

rangements,

too.

How does

Through

representatives, and

important areas of the world, Chase

Keeping traffic moving in both di¬
rections

with other countries?

branches,

thor¬

two-way

carries

our

ness

its

correspondents in all commercially

to overseas marts

eign goods to

get

detailed "Outlook for 1956" in

a

avenue

that

portance

weeks to change the 1956 outlook.

my

lady looks both ways

peo¬

These people bring most of

ple.

the

?

ymm

or

three cents from your dollar, only

the

y/yyy.yt.

important work of dis¬

very

tribution.

Chase Manhattan spe¬

help bring foreign transac¬
successful

completion.

Glatt,

L. Kooch,
Ned
Leigh,

outlook"

we

Staff

(Special to The Financial Chronicle)

us

can

we

than

WHOLE
OWN

that

unfavor¬

an

25

HIS

LOSE

ley M. Dreyfuss, David E.

as

He gave

us

will

AND

profit the gifts

way

mercialized.

IF HE SHALL GAIN THE

hand,

the

Birthday, I do not know. It seems
me that He would be unhappy

liberal,

Let

there

do

to

about

On the other

keep in mind what good

Say?

say

field.

corn

anything can be overdone; every¬ WORLD
thing can be either used or abused. SOUL?"

to

What

other hand,

the

heart attack did to the

washed

homes

three

weather,

in

markets

by floods cannot forget their

year's Christmas buying. We are
all
inclined
to
give
too
little

something could happen during
next

New

fered from droughts are rejoicing

retailer.

and

in

had

away

both

the

of

enhower's

feeling, Mr. Babson explains how

buying increases

sections

all

course,

epidemics,
possible
earthquakes. What President Eis¬

country will not be equally happy
this Christmas. The thousands of

sylvania,

good barometer of the nations'

Market.

Stock

Of

By ROGER W. BABSON

a

(2209)

Chase

Manhattan
BANK
HEAD OFFICE: 18 Pine Street,

New York 15

Member Federal Deposit Insurance

Corporation

j

Co., 210

26

The Commercial and Financial Chronicle

(2210)

higher

b(y 5% made

is proceeding unabated. Says most important single cause is
the stepping up in the demands for higher wages.
The

of

Oct. 31

the

In

LONDON, Eng.
issue

1948

by

was

and

that,

raised

had

proof

lines to task for
having writ-

these

of

eating.

weeks

before the ino

f

of

Chancellor

.

they

submitted

Sup-

effort

Marquette Cement Mfg.
Common Stock Offered
heads

which

an

Inc., of Chiunderwriting group

Nov.

on

15

offered

and

takes

This

place
is

creative

this is

in

don't

your

basic

a

law

tive

customer

ful

It is fundamental to

sales

which

work

success¬

all

after

him

a

one

and

that

upon

person

to convey a suggestion to
that will meet with ap¬

another

proval.

the

of

ability

It is therefore clear tnat

suggestions

which

conceived

are

would

the

abstained from making any public
pronouncements tending to en-

of

be

unless

use

no

Einzig

But the

courage wages demands.

wages

ceeds

very moderate increase m the
cost of living which is liable to the Des Moines, Iowa, plant. Marf hould be congratulating itself on
f"es * *rom 'he application of Mr. qUette Cement now operates eight
the
devices actually
chosen by Butlei s measures has provided cement plants.
Mr. Butler, although they have no them
with an opportunity for
Giving effect to the current isrpiral could be brought to a halt.
J4r.
Collins thinks
that Britain

hoirinc/
bearing

thp

nn

enlisting
®

wfl£?ps

the

on

wages

®
....
far, serv;ice ot Fart;y p<oh:tics.

There has been, so
little evidence of any such
self-congratulations in the Brit-

spiral.

it, has placed

to

in the House of Com-

or

the

in

p

.

,.

Mr. Butlers Budget, and the
reactions of Socialist politicians

very

i:h Press

demands

wages

.

the

responsible

and public-spirited among the
personal attack directed on him Trade Union leaders in a very
Ly his Socialist predecessor in awkward
position.
Before 1he
office, Mr. Gaitskell, the Budget Budget, they used all their influ-

of

but for the unfair

Indeed,

mons.

have

would

Butler

Mr.

been

to

ence

induce

the

workers

to

preferred shares
$8
value and 2 625 000 shares of

par

stock; the preferred and

common

shares

common

for-l

on

Fo
zo

Nov

th

1955

j£'

split

were

21/?-

a

jiine months ended Sent'

fplnt ?P

Marauette

moderate their wages demands.
ted net e
n
^after taxes
Now their hand is forced by the $5 174 462 eoual to $2 12 nor
so, his own supporters are unable unpopularity
of Mr. B u 11 e r's „£ common sb,?l
to work up any enthusiasm for measures and by the political exV
the formula he has chosen, pre- ploitation of that unpopularity by
risely because they realize that "'the politicians of the labor moveit is not likely to stop the wages merit.
Since Mr. Gaitskell has
spiral, either by breaking 4t or forecast
considerable additional! •
Ly inducing the labor union's to--'wages demands, the Trade Union y
refrain voluntarily from pressing leaders now consider it their duty
Laird & fWmanv

subject

much

to

criticism

more

f>:om Conservative

quarters.

Even

.

n*f

their

to

claims.

do

their

best

to

him

prove

New

York

be

write

to

a

this

it seems to
who have studied

connection,

that many

me

the field of sales psychology have

r'ght- So there is bound to be a announce(j that Duncan Miller
thaUMq
<* •jWftha. been appointed
managel o?
ranks>.6ff * cau$haracter.
'
the firm's syndicate
department,

Just in case Mr. Collins and his

should

readers

Jiutler

think

those

has joined the
who cannot be prophets

their

own

well

recall

to

facts

the

,.It is true, the evidence of growindustrial profits tends , to

in

lnS

might, be

it

country,

the. encourage

of

with

headquarters

York office,

in

the

New

61 Broadway

demands, since,

wages

become

to

effective

an

salesman, but I do believe that if
many of the technicalities of the
sales

boiled

be

simple

analyzed they

were

process

could

down

into

some

procedures that,
if fol¬
produce successful

lowed,

would

lieve

It

Yourself."

conviction
doubt
vey

then

about

If

will

there

your

have

you

ability

be

If

don't have to

you

no

to con¬

confidence to another.

need

not

have

no

talk.

the

take

for

use

As

grap¬

the

matter

For

of

many

sales

I

had

1

suggested

a
high-grade
preferred that was

vertible

available

My

in

had

to

prejudices
were

Over-the-Counter

traded

appearing

prejudice

Market.

because

is

dis¬

investment

salesmen have discovered that it is

fact that

some,

of the most out¬

standing investment opportunities
available
can
only be found in
the unlisted market.

has

been

The "Chron¬

emphasizing

series of well-timed

a

this

the

unlisted

con¬

only

market.

customer

bought
He

said, "I've never
unlisted stock before."

an

inferred

in

doubt

that

about

possibly he
the

was

commitment

unlisted.

was

I

replied,
"Frank, I want you to listen to
carefully. Isn't it possible that

me

you

have missed

may

some

won¬

derful

opportunities during these
past few years?" Then I named
a

few listed stocks with which he

was

familiar and I quoted some of

the

profits

that

had

been

made

by buying them before they
listed.
as

Then

this

I

said,

know

you

instance
at

can

I

sometimes

want

this

to

situation

mind and

open

were

"Prejudices
be

misconceptions.

upon

look

in¬

years

They

investments

exception of two issues.

point where they appeared to
have exhausted their possibilities.
After we made the decision to sell

us

unlisted

client

a

a

to

ask

In
you

with

eliminate

an

any

prejudice

you may have regard¬
ing the fact that this stock is un¬

listed.

In

reasons

icle"

high-grade

the

based

let

have

certain

Gradually^ that

a

day

We both decided that these two
stocks had appreciated in value to

to

salesmen

down

canned

a

illustration

an

you

defensive, you

against securities that
the

all

with

you

ple for words of explanation,

fact in

-

other

because it

results.

in

The

were

live

KSf

of

In

vestment

Appoints
Miller Synd. Mgr.

to

technicalities

who owned all listed stocks.

securities.

Laird & Go.

have

unlisted

this subject—just state

on

consider

..

the

unin-

an

don't

fact.

believe,

7

all

You

when I suggest that
you take the
affirmative.

will

and
mean

Believe It
°
L1 lu uie
sue sold for company account,
One of the rules that I believe
capitalization will consist of $11,400,000 funded debt, 388,125 6%" should head such a list is "Be¬
cumulative

represents

ineffective.
highbrow

weakly
I don't

,

riiront
direct

into

a

shouldn t be afraid to
buy an un¬
listed stock. That's what I mean

are

new

plants at Milwaukee, WisconS2n
and Cape Girardeau, Missourj ancj maj0r improvements at

that

value.

sell

future,
bought today at

be

can

your

you

hazy and cloudy in their
inception will be be projected

a

wishes

toward construction of

when

negative state of mind, and

262,500

cement

flated
go

doing

are

security that has

price

a

Take the affirma¬

you

favor

a

trading, of listing versus
over-the-c o u n t e r,
of why he

in

speakers who declared that the Co., priced at $34.75 a share. Of over-complicated a subject that
Budget, that nature of the Budget justified ad- the total shares, 12,500 are being admittedly can become involved.
I am not questioning the need for
any disinfla- ditional
wages claims. Hitherto, sold by a stockholder. ;
*
J
study and for experience if one
tionary efforts all responsible Socialist leaders
The company will apply its proPaul

because

is

based

Sales must result. You
to apologize for an

unlisted stock.

fort.

1 ementary

p

so.

need

that underlies all constructive ef¬

column

A. G. Becker & Co.
cago

successful

first
mind.

own

that

aged to adopt this course by Mr. common shares, $4 par value, of
Gaitskell
and
other
Socialist Marquette Cement Manufacturing

the Exchequer

Butler's

which

the wages

previously.
They went out
of
their way to emphasize that this
was being done as a direct consequence of the view they took
of the Budget. They were encour-

Chronicle"

troduction

by

P°wer
behind them
Mr. would have been just as strong,

the pudding is
Immediately
after

demands

Financial

some

Butler
tax

Ahau?
less convincing but the

The sounded
in its

labor unions increased

Commercial
and

.

Mr.

of

Butler's Budget statement, several

"The

in

ten

of

if

dividend

to

The arguments in favor

Mr*6Edwartf RCollfns" takes'"the we" could ^^""indefinitely.
writer

reasonable

even

Every

advanced

wages

is

it

5%, the wages
spiral would have continued un-

abated.

The Affirmative Attitude

effective between

the

instead

20%

By JOHN DUTTON

be recalled that,
the
dividend
re¬

very

So

matter of opinion about which

a

Securities Salesman's Corner

may

1950,

19%.

assume

is not just

this

Unfortunately,

New York "Times,"

cn

The

difference in their

no

It

though

even

straint

and instalment selling restrictions, inflation in Britain

squeezes

j

based

sound.

are

made-by Mr.
Butler by raising the dividend tax
attitude.

|
J,.

arguments

profits

minor .concession

Answering a criticism of Edward H. Collins in the New York
"Times" of Oct. 31, Dr. Einzig recalls the facts in the infla¬
tionary situation in Britain, and contends that in spite of credit

|

their

not

By PAUL EINZIG

J

Thursday, November 24,1955

.

.

position to keep the wages spiral
going, irrespective of whether or

"Political" Wage Demands
Cause of Biitain's Inflation
f *

.

Some

fact, that is

one

of the

I want you to buy it now.
the most informed in¬

of

in this country have
bought thousands of shares of this

vestors

preferred because they see not
only a sound investment today
but

a

sured
went

vast

for

from

on

ar¬
no

growth practically as¬
company." And I

this

reason

to

there.

go

There

into

a

a n

d

was

defense of

ticles. Other publications and the
Mr. Collins rightly points out,
•
"
the unlisted market,
or
a
long
daily papers are at last waking
"the British worker has been
With Fahnestock Co.
talk about the bid and the asked,
up to the same conclusion. Mean¬
conditioned for some years now
phtt afift phi a
t>a
or how liquid was the investment.
while, many investors who had
to relate wages to profits." This c Bo,tock Ir hi.
The point at issue was—here is
confined
their
commitments
to
13 proceeding unabated, and that
attitude has come to be taken as ,td
ith
„
JSS0,J listed
the best reinvestment I can find
issues
have
begun to see the
bj far the most important single a
matter 'of course, not .only |*Vf
for you.
cause
of
it is the stepping up among trade unionists and Solight.
Prejudice
is
being
swept
fhe New Ynrt Ito^f
Either you have the facts and
of
demands
for
away
because
it
should
never
have
higher
wages, ciahsts in general but even among
J®
believe them yourself, or you half
existed in the first place. Slowly
quite out of proportion to the industrialists. For. instance, in a fhl phn^
believe, half understand and halfbut surely, not only people in the
rise in the cost ol living or to recently published letter to the
at?!! "
sell others.
If you "believe it"
Hie increase in the output.
investments business and profes¬
The
Daily Telegraph, Mr. Osborne,4a j
«■
: ■ jyou can only take the affirmative
extent
of '. overfull' embloyirieht' Conservative
industrialist MemMr. Bostock was formerly asso- sional investors, but also the lay and that will be
apparent and
continues to increase, judging by ^er
Parliament, endorsed that, c^&ted with the Second National public are not only putting aside believed
by others.
their resistance to a good invest¬
loe widening of the gap between attitude.
Yet it is quite obvious Bank of Philadelphia,
ment because it is not listed, but
the number of unemployed—most that the increases of
profits in
ef whom are probably unemploy- recent years have been achieved
Parker, Ford Co. Formed
they are beginning to seek them
A
fcbles—and
out.
that
of
registered entirely as a result of increased ' ^reenDerg> Otrong and
DALLAS, Texas—Parker, Ford
vacancies, which latter probably mechanization, brought about by
If you have watched the devel¬ & Company, Inc. has been formed
Company is Formed
represents a bare fraction of the
employers at considerable
t
opment of such companies
(to with offices at 7145 Wildgrove
p|
number of unregistered
name
vacancies eost The'workers' share in the
*"
In lJenver
only a handful) as Mara¬ Avenue to engage in a securities
Mr.
Collins admits that ."Mr."
'WaS less' than nothing;
DENVER; COLORADO - thon Corp.; Winn-Dixie Stores, business. Officers, are Leslie P.
Butler's second Budget contains
t h?? been. ach!ev(ki m spite of Greenberg, Strong and Company Inc. (formerly Winn & Lovett Lagoni, President; J. F. Lagoni,

situation.

The

basic

fact

is

as

that,
in spite of 10 months of credit
squeeze and restrictions on instalment selling, inflation in Britain

•

j

■

,

u

,

„

m

sneriflp

1,osal

for

profits

the

be

postwar

workers

and

.

the

has

tax

bearing

lie cannot

fnr

increase in

an

tubuted

indirect

nrtwjcfnns

very

fmployment. In

dis-

m

union

j

1£

Ly

the

increase

oividends

Increase
lion
f-ive

of

workers in

cf

less

the

tax

on

It is true, that
brings the rate of taxadividends to the impres-

figure

not be

of

by 5%.

of

.

70%.

But

the

postwar Britain would

really satisfied with
than

95%

and

iLL
f/
' f
them L
would
demand full
r




a

tax

manv

100%.

nf

,?y reS

as

* 6 Denver'

-.V
!lat ,w

equip-

.w

® r

its official opening

iLre~

-

sharp'of

thp

amnnnt? qo!!L

The new trading company has
installed communications facili-

Canada. Greenberg, Strong will

a e o£ the amounts sa\ed.

However, the soundness

trade in unlisted, speculative

se-

curities.

A special department,
soundness of arguments matters emphasizing oil, gas and mining
very
little ■ in. wages
dispute, securities is now being developed,
Lafontaine's proverbial wolf
Gerald M. Greenberg is presiended

by

devouring

the

or

un-

lamb,

dent;

*n sP^e

Robert

Leopold

is

sales

the unsoundness of his manager. Other personnel include
ar2Vmfats
which he sought seven broker salesmen and an
*° ]Ustlfy his Spending action, accounting and clerical staff of
And the British

workers

are

in

a

five.

Grocery.); Florida;Power & Light Vice
President;
Foremost Dairies; Storer Broad¬ Witts, Secretary.
casting, whose common stocks are
-

now

listed

on

David

A.

the New York Stock

were

Joseph Stotler Opens
selling at several
price at which they
ARDMORE, Okla. — Joseph L.
available only a few short Stotler is engaging in a securities

years

ago

Exchange

fc
scarcity value. There ties in its six office suite for cornwhawirfnww1UI +•Plete wire service to all major
fhpv
pnSf1! c°ntentl0n th^ markets in the United States and

leaders

he imagines that
they would
Le impressed and touched to tears

.

announces

many instances 218 First National Bank Building,

n

mentality of British
their

increasing degr.ee .of, their

some

that problem.
familiar with

on

e

times

and

the

when they could have

only been bought on the unlisted

business
the

from

name

of

offices

here

under

Joseph L. Stotler &

Mr.
Stotler
was
market, you won't have any trou¬ Co.
previously
ble convincing yourself that the with McDaniel
Lewis & Co. in
time to make a good investment Greensboro, N. C.
is when you can buy into an ag¬

gressive growing company
a future, and that's that!

has

that

With Curtis Merkel
(Special to The Financial Chronicle)

the Facts
ST. PETERSBURG, Fla.—Mar¬
that a good invest¬ ion M. Aydelott, formerly with
ment is good for your customers Goodbody & Co., is now associated
is just about all you need to know. with Curtis Merkel Company, 601
In your own words tell them why First Avenue, North.
State

Knowing

©.

Volume

Number 5484

182

.

.

The Commercial and Financial Chronicle

.

Now Johnson & Johnson

Credit Restraint to

HOUSTON,

Continue While

name

pany,

Business Booms:Nadler
In

Inc., West Building, has been
to Johnson & Johnson,

LONG

C.
is

BEACH,

neutrality, and, then, if business
activity declines substantially, it

The

icy

will

long

as

is

economy

Queens
name

and

A. M.

firm

name

of

Boulevard

of Bell &

a

offices

se¬

at

under

Company.

Two New Branches
CHICAGO, ILL. — Arthur M.
and Co., Inc., members

Krensky
of

Company.

from

Krensky Co. Opens

Calif.—Gordon

the

Y.—Anna

engaging in

purchased
and

Wayne,
Texas.

Indiana,
This

the

New

York

and

Midwest

in

and

expansion

Fort

El Paso,
brings to

four the number of branch offices

established
into

since

business

a

The

branch

firm

the

year
••

and

went
a

half

cated
coln
El

The

Fort

in Princeton,

Wayne

possible

assets

at

Tower

office

will

Building.
be

311 Texas Street in that

GOING

PLACES

into

a

Marcus

Nadler,

con¬

sulting
omist

(Special to The Financial Chronicle)

addition

when

be¬

Krensky

is

now

139

with

A. M. Kidder &

East Flagler

Street.

drop of oil

The

Hanover

Bank,

and

Professor

o

Finance
New
U

n

Ij^^jslp

f

at

York

iversity,

states in

a

re-

port on "Aims
0

f

Credit

Control,"
which

■■BLMHEB
Marcua

is

dis-

tributed

Nadler

The

by

Hanover

Bank.

"The recent credit policies of
the Reserve authorities have been
well conceived and
ecuted.

Supported

as

skillfully ex¬
they were by

the appropriate debt
management

policy

of

the

Treasury

constructive action

and

by

the part of

on

those agencies

dealing with home
they
give
assurance

financing,

that the present boom will not be
permitted to degenerate and that
appropriate
measures
will
be

taken
of

when

business shows signs

decline."

a

Dr.

>

Nadler

immediate'

added

future

authorities

will

that
the

in

the

Reserve"

continue

to

fur¬

nish member banks with reserves
to

meet

at

least

partial seasonal
credit requirements and the seas¬
onal demand for currency., .

"But,"
banks

he

will

somewhat
tional

"the: member

said,

continue
to

to

obtain

reserves

be

forced

their

addi¬

by borrowing from

the Reserve banks."
The

policy of restraint will give
one of neutrality as soon

to

way

business activity begins to level

as

off

and

inflationary forces begin"
disappear,
Dr. vNadler
ex¬

to

plained. And if
declines

"one

to

business activityearly
next

somewhat

the credit policy will change

year,

of

and

ease,

may

be

one

of active ease," he said.
"Not

.»■

only will the Reserve

thorities increase

through

au¬

balances'

reserve

market purchases,
is quite possible
that the Reserve Board may lower
reserve requirements." he contin¬
but

open

later

it

on

ued," "This'Will be done partly to
raise

excess

reserve

balances

of

the member banks—thus increas¬

ing materially the availability of
bank credit

—

and partly because

in

requirements

reserve

States

United

.the-.

altogether

are

too

high.
"A

lowering of

ments

require¬

reserve

in

sometime

the

future

is

imperative in order to enable the
member banks to meet the secular

of

growth

the

economy.

Future

Cities Service researchers enter the minute world of the molecule and
out with

new

credit policies will continue to re¬
main

flexible

and

depending

change

subject

to

business

upon

and better products

...

come

for example, 5-D Premium gasolene

and 5-D Koolmotor oil. The superior performance of these new products has
boosted sales of Cities Service gasolenes at double the rate

of industry demand.

activity. They will be guided by
rather

economic

considerations,

keeping

the

preventing
flationary
the

banks

serves

than

political

aimed

toward

economy

healthy,

inflationary
forces

and

and

providing

with the necessary

to enable them

CITIES

de¬

to

the country's economic




growth"

@

A Growth

re¬

finance

Number 15 of

a

series

city.

MIAMI, Fla.—E. Gordon Harvey

with Cities Service..

econ¬

to

The

located at

With A. M. Kidder Co.

Illi¬

pol¬

capacity,

Dr.

Foelber

the 13th floor of the Lin¬

remain

the nation's

as

running

of

■

nois and Grand Rapids, Michigan.

came

on

Bank

Paso

Krensky firm already has
offices

the

Company, Inc., of that city.
The, Krensky offices will be lo¬

policy of

a

authorities'

restraint

unchanged

under

is

business

Exchanges has added two
branch

ease.

monetary

of

GARDENS, N.

Stock

offices

27

(2211)

..

new

ago.

conducting his investment

business

McCormick

Company Formed

Belliveau

curities

McCormick, 110 Pine Avenue,
now

restraint will give way to one of

by

C.

the firm

Forms McCormick & Co.

York, he
the current policy of credit

credit

firm
Com¬

Inc.

Hanover Bank of New

will be followed

Texas —The

Johnson and

KEW

120-44

Control," distributed by The
says

Ray

Bell &

changed

report on "Aims of Credit

a

of

.

SERVICE

Company

Co.,

28

(2212)

The Commercial and Financial Chronicle

reasonable formula to bear in mind

Vaiyinj Types oi Investment]

is

equal

the

Industrials

depreciation

should
amount of

exceed the
amortization payments to be made.

And Theii Yields

or

Compare this with the purchase
of

By HERBERT JACQUES MORRIS*

&T

that

stocks.

common

sense,

yield,

sell

on

Mr. Morris

covers

the investment and yield qualities of real

estate and various

types of securities from the point of view

of

safety, yield, and marketability. Compares railroad, utilities
other corporate bonds with first mortgages; preferred
stocks with second mortgages; and common stocks with mortgage equities.
Reviews investment situation with reference

U

to

tax

exempt bonds, and finds

yields

on

This

terms

and

mortgages.

estate

classify
rate

estate

preferred

that investment had been in listed

can't

securities I doubt if he would have

You

AAA bonds

as

There

stock.

to

easy

as

securities.

as

real

isj not

d i

is

t

a

es-

which

e

makes it diffi¬

cult

to

classi¬

fy. Sure, there
is

similarity

a

between
of

25

a row

100

x

five

story

-

tenements
East

o n

85th

St.

between

1st Aves.,

and

but

even

the
Herbert

J.

Morris

theless, in

the

the state of

tempt

to

talk,

classify.

difference

gaged

outline

this

there

is

no

the

will

at¬

is

mortgaged

a

less

because

but

because

the,
the

fellow who is ahead of the
is the real estate

se¬

in

by 1954.

mind

that

depreciation
an al¬

improved real estate is

lowable

deduction

the

by

Tax
Department.
Before the payment
of corporate or individual income
tax

real

on

duct

not

estate, you

only

estate

real

but

in

addition,

depreciation

there

is

you

deductions

interest

or

There

bonds.

dividends

from

stocks

on

bonds, but

more

paid on
exempt

tax

are

dramatize

the

tion with

Let

building.

This is
common form

probably the most
urban

Let

deprecia¬

hypothetical, typi¬

a

cal multi-tenant

of

of

investment

real

assume:

us

only

40,000

-

Gross rent

From the gross rent you
may

Interest

property.

tenant

Then

the

suming

multi-

land

building, then the
piime apartment building on Park
Avenue, etc., then the loft build¬
ing, walk-up apartment, etc. Those

Factors

the

One of the pet arguments
of

to

uses

resist

buying real estate

ment is its lack of

is true.
at the
of

with

drop of

not

as

in¬

an

the

a

hat.
a

always

an

many

where

cases

market

I

has

market

an

unmiti¬

known

the

lack

a

of

a

reluctant

owner to hold
on
with the ulti¬
mate result that he has
cashed out
at. 100 cents on the dollar
or

bet¬

ter.
One

the

shining example

Bank

The bank
crash

has

of

tors had

closed after the 1929
the bank examiners. It

the dollar.
been

money at that

I

to

90

deposi¬

draw

time, how

their

much

do

would have been left?
mixed up in one real
estate
where
the

property

market

a

year

crash.

was

before the

The

could not cash out and
to hold all

The

over

If the

able

bought less than
1829

off

think

was

deal

was

States.

was

by
on

of this

United

subsequently paid

cents

you

the

buyer

was

forced

through the bad

years.

property

was

unmortgaged.

He sold last
year at a price far in
excess of his
original dreams.
If
*PartiaI

text

of

a

r*s

hv

M».

M-.-.

sponsored fay the Real Estate
Board of
Hew York, New York
City.




an

20

Thus

years,

you

the

period

the

lease

can

write

The
of
fee purchase is
yearly.

between

investment and
that

if

average of 5%

difference

a

leasehold

this

is

type

diminish¬

a

ing return. That is, the longer it
runs,
the shorter the remaining
term

and, therefore, the lesser its
value; while in a fee ownership,
you may look for a
if conditions improve

capital gain

during

your

ownership.

Now
other

ing

Types

let's

of Investment

take

look

a

at

the

types of investment. Leav¬

out

tax-exempt bonds and
government
bonds, we will at¬
tempt to compare in a broad sense
blue
chip, railroad, utility and
corporate

bonds

with

first

mgmt.

5,000

sec¬

that when you own
free and clear property you are

cash

expense

against

as

equal

to

1214%

vestment or if

7.6%

on

a

before

$4,900.

This

the

on

cash

is
in¬

unmortgaged, equal
free

and clear basis

payment

of

income

taxes.

depreciation,

Building value

selected

off

securities

ness

ability

or

with

whereas

real

estate.

may be better off with

The

ideal investment

contains

both.

net

earnings

the
you

after

save

a

real

estate

customers

ualists

who

judgment.
and

The

rely

of

and
a

stocks.

common

income
tax

of

$3,955

To

net

take

look

a

are

of

This

mately

is

approxi¬
the equity

10% yield on
invested and 6.6% plus after taxes
on
a free and clear basis.
No al¬

lowance

has

calculation

been

for

made

the

in

payment

this

of

amortization because amortization
is only the reduction of

capital

indebtedness

and

is

taxable.

Let

us

A

excepting
depreciation. If

your cost is

from

3.13

to

3.18

owe

from

3.33

to

3.37

amortization is not

from 3.70 to

3.77

These

figures

from

are

Fitch

In

broad

a

these

that

would

I

sense

bonds

might

be

say

com¬

pared with first mortgage invest¬
from

the

point of view

of

Obviously mortgage-yields
higher, recently averaging in

the

neighborhood of 4% %„■■■' By
comparison with marketable secu¬
rities,

mortgages

liquidity.

lack

This
accounts, in part, for the
higher
yield.
Preferred
stocks
might
be
compared
to
second

sound value and

you

against your property,

money

an

expense.

Depreciation: A sound
principle,
is recognized
by the tax depart¬
ment. Structures do get old.
De¬
preciation

is

valuable

a

offset

against taxable income and inci¬
dentally against high amortization.

1955

a

low

the
tain

of

These figures

prices.

when

yield.

Bear

money

is

1.71%

are

in

plentiful,
the

mortgage

loans

secondary in
to

bonds

is

reflected

in

that

safety

they

compared

as

first

or

mortgage. This
the yield
which

in

roughly averages 4-5%
5-6%

are

against

as

plus for second mortgages.
other point of comparison,

One

stocks

common

and

real

estate

equities have the speculative ad¬
vantages of possible capital gains
(or losses). First mortgage and/or

high grade bonds reflect safety and
conservative yield. Second mort¬
gages and/or preferred stocks, less
safety with better yield.
Real
estate

equities

stocks

still less

and/or

common

safety with much

better yield plus

capital gain

spec¬

ulation.

Now

let

Some

cer¬

state

and

us

look

word about tax exempts

a

compared

as

gages

some

yield

mort¬

other real estate invest¬

or

ments.

low

to

As

stated:

interest

from

government, state and

mu¬

nicipal bonds is exempt from Fed¬
eral income taxes. Taxable income

specified in the Internal Rev¬

as

Code of 1954.

enue

Tax

exempts

5%

and

yield

mean

the fellow in

from

.75%

awful

an

lot

to

with

tables

enabled

which

have

to

make

these

com¬

Their

research

depart¬
helpful.

have

before

me

table

a

"Taxable Equivalent Yields"

paring

"Tax

Bonds."

with

Free

some

other

Railroad

the

from

3.14

to

3.17

AA

from

3.22

to

3.29

A

from

3.53

to

3.60

BBB

from

4.06

to

4.18

Grand Avg.

from 3.51

to

3.58

of

com¬

Taxable

the

words

AAA

from

3.05

to

3.17

from

3.09

to

3.16

A

from

3.19

to

3.28

BBB

from

3.42

to

3.46

Grand Avg.

from 3.20

to

3.27

The

for

property.

Here you have the

higher prices

reverse,

for

Contrary

to

Where

loans

a

$44,000

having $33,000-

person

taxable

income

bracket) would have to

earn

(69%
8.0o%

come, would have to
from
taxable
bonds

equivalent

of

earn

to

2.50%

4.03%
the

be

tax

exempt

time
back
prime
placed at 3-3 V2% and
now the going rate is

some

4%,
and

sum

.

true

of

Real

Estate

vs.

Security

Yield: Securities have better
a

mar¬

In

closing,

let

my

The cardinal in¬
vestment principle is safety, yield
and marketability.
They are in¬
tertwined, the greater the safety,

the

the

better

marketability, the

lesser the yield and vice-versa.

Heiligenstein

Represent

to

Walker in Decatur
DECATUR, ILL.
ker

Co.

&

of

the

nounced

St.

—

G. H. Wal¬

Louis

has

an¬

appointment of Ron

Heiligenstein

as

sentative

i

Decatur,

Illi¬

resident

repre¬

n

has

been associat¬

with

ed

St.

the

Louis
he

been

has.

em¬

in

ployed

the

Stock

Ex¬

change

and

Municipal
Bond

Deoart-

his

is

He

ments.

moving

Ron

with

family

Heiligenstein

to

Decatur about the first of Decem¬
ber.

is

Heiligenstein is a graduate
University of Illinois and a
Belleville, Illinois where

Heiligenstein,

president of the First National

Bank.

blessing).

estate

Joins Coffin & Burr

better

vs.

repeat

me

opening remark.

yield for comparable
by at least 1%.
(1st
mortgages vs. bonds.)
risk

lose

coupons.

native of

Yield

to

bonds

his father, Mr. C. A.

up:

price of

continues

Obviously the same
and preferred
stocks, the lower the price the
higher the yield from fixed amount
is

Mr.

Summary

the

If

more.

stocks

will increase.

of the

attempt to

trend

ground and dividends hold, yields

yield.

To

current

were

where

One,

this

a tight¬
ening of credit, 1st mortgage rates
are higher thhn a
year or so ago.

only

couple of examples.

lower

and due in part at least to

home office in

a

mean

yields.

nois. Mr.Heil-

clear"

com¬

was

Today most property own¬
hanging on, which means
prospective
buyers
are
bidding
are

igenstein

and

result

yields.
ers

"taxable bonds." Don't get fidgety.
I'm not going to read the table

Free and Clear

Yield:

Higher, of course, by virtue
of leverage obtained through fi¬
nancing; for example—my original

(Special to The Financial Chronicle)

Maine

PORTLAND,
Deering, Jr. is
Burr,

now

—

John W.

with Coffin &

Incorporated, 443

Congress

Street.

demonstration:
Price
rent

clear

AA

estate.

factor,

"free

sav¬

petitive selling which means lower
prices and inevitably higher

saving

for

real estate you could substitute

on

Net

Utilities

Dur¬

ing from portfolios top heavy with
real

the

Equity Yield

AAA

Demand:

and
insurance companies were unload¬

depreciation

Except

of

grace

Real
at

of Yield

me

lists

has been most

ment
I

furnishing

and

me

parisons.

a

ketability (not always

1955:

Trends

ing the war years and after,
ings banks, trust companies

414%

Exempts

in

tax free.

I have already rated the
various types of investments.

common

Now

supply of
are

emption.

then
Tax

yields

reflected

governments,
are

on

that

rates

price of the bond.
few

to

based

mind

lower and when the

is

They

depreciation factor, and tax
exempt bonds, because of the ex¬

.

from

the

before

taxes, you deduct income
$945, leaving a balance of
tax free.

al¬

bonds, notes

the

at

from

3.03%.

recapitulate:

income

set-up

exceeds

AA

Two, a person having $10,000$12,000 (38% bracket) taxable in¬

bond yields in

income.

it

A—

vestments in the world; also prob¬
Now let us

Government

the $3,150 should be 30% or
$945.
other words, the depreciation

$4,900

financial

3.11

taxable bonds (or real es¬
tate) to be the equivalent of 2.50%
tax exempt yield.

S.

certificates

municipals

approximately 35%

your

when

to

the safest in¬

U.

$25,000 or an individ¬
having net earnings in the
$6,000-$8,000 bracket, the tax on

the

have

look at the others.

The yield

of

I

ready compared real estate equi¬

higher.

taxable

own

stocks

own

hands.

your

tightens,

equals

individ¬

bonds, the management policy

out

money

In

real

their

on

When you

a

ual

per¬

best

the

are

are

corporation having net earnings

pur¬

security-minded

estate.

depreciation
(which earnings are taxable) in
the amount of
$3,150. Assuming
the ownership is in the hands of
of less than

My

in accenting these types is to
you time and money.
Don't

pose

range

from

a repay¬
debt and does not affect

a

3.03

—

profes¬
tell you as

broker, amortization is

from

Fenner & Beane for

experience

better

be

$1,750.

deducted

Composite

what

may

AAA

business

ably the most liquid.

That

ment of

may

building at a value of $70,000 may be depreciated 214% or
$4,900 net income would leave

a

without

and

70,000

3.27

3.70

training

take

The

to

to

As you can see, the choice depends
the type of ownership. People

ties

$30,000

3.22

high bracket. Be¬
fore I forget, let me give credit at
this point to Merrill Lynch, Pierce,

we

Land value

from

from 3.61

to

of

may take the purchase price
$100,000 and use the same pro¬
portion as the assessed value:

A
BBB

late various conditions Which may
involve additional capital outlay.

is

In order to figure

operators

for the year 1954 is subject to tax
rates ranging from 20% to 91%,

son

of

sional

boss, you dictate policy.
If
mortgaged, the mortgagee only has
a
say
when you mortgage the
property or when the mortgage is
up for renewal when he may stipu¬

well

$11,100

3.13

Bond Yield Average.

mort¬

preferred stocks with

gages;

amortization

both

have

forced

off

is

try to sell

invest¬

Other types
free

prove to be

blessing.

term

lease.

the gross income of $16,000, leaves
net rent before depreciation or

can

gated

3,400

a

to

liquidity. That

have

the

the

over

the person with the time and busi¬

subject

bid and asked
price so that
get out fast. This does

a

you

$25,000)___

Cash expense

You cannot sell real
estate

securities

of

is

on

$85,000 inch

at

maint. &

$11,100

factors to remem¬
investment business
are
safety, yield and marketabil¬
ity. You can seldom get all three.
in

investment

your

Accordingly the grand total of portfolio

Investment

The cardinal

vestor

Gen.

assess¬

general classifications.

Cardinal

ber

$2,700

mortgage

an

ment of

office

aie the

on

Real Estate taxes (as¬

spot but Hop paper.
have the multi-tenant

you

deduct:

to

its

the pur¬
chase of a long-term lease for in¬
vestment (not a fee subject to a
lease). Here you may write off
example

the

$16,000

3.04

are

stock market shakeup.

Another

a

int. $60,000

from

"Tax Free Income"—the only true
income. • Real estate, because of

Remember

Mtge. at 4V2%

AA

amortization be¬

to

ments

mortgages and free and clear
equity; and common stocks with
mortgaged equities.

__$100,000

Cash

fair

a

Then
store

decline,

ond

Price

property oc¬
cupied by a chain rated AAA1 on
Main Street in the best location.
There you have the double secu¬
Then you have the location
occupied by Sears, Roebuck or an
industrial giant. There you have

estate.

after

Even

That partly explains the re¬

Other

simple example.

a

take

us

value

contrary

BBB

marketability

early October sharp

cause

safety.

that later.

on

going into the subject
comparative yields, I want to

of

owner

per.

paid

for

3.01

the yield on good stocks is out of

Before

only

and good pa¬

deduct

may

generally not less than 2%, fre¬
quently more. There are no such

the

rity of both location

taxes,

the improvement,

on

taxing authority.-

Then

de¬

may

mortgage interest, general main¬
tenance charges and management,

the

unmort¬

an

leverage

curity is better

for

There

between

property and
The yield
is

one.

I

of

corner

variation. Never¬

a

broad

of

purpose

there

proximity

to
or

repair creates

2nd

cent left

a

Bear

viduality

about real
t

had

or

in-

an

yield

to

line.
cent

Real

of

diversification.

the

upward trend of income

an

after taxes of $1,400 or 3.5%.
is quite a price to pay in

net

and

2.91

Grand

as

to the

"£]

from

a

compared
equity example just quoted.
$40,000 would yield 5% or $2,000.
On the same tax formula, the tax
would be 30% or $600 leaving a

Herbert Jacques Morris Corporation, New York City

any reference to

AAA

broad

a

stocks

common

basis of 4-5%

In

Thursday, November 24,1955

...

$100,000
free

(7.6%)

7,600

Mortgage at 414%
Equity __(12!4%)

60.000

4,900

Amortization, Depreciation and
Tax Free Income:

With Federated Sees.

and

I have avoided

(Special to The Financial Chronicle)

WINTER
W.

Williams

PARK,
is

now

Fla.

—

with

ated Securities Company,

North Orlando Avenue.

Ernest
Feder¬

Inc., 530

'

*

Volume

Number 5484

182

.

,

.

'

*1

r>, ■')*.:

\i

>

' C-1

The Commercial and Financial Chronicle

"Say Not the Straggle
Naught Availelh"

tinue to rise.

local governments have been faced

public

a

and

water

mated

facilities.

that

facilities

is

three

these

will

It

PALM

for

account

and each will reach

level.

save.

in

"Our

connection

rence

budgets for the defense
program have not been built on
day to day shifts in diplomatic

Power

and

a

other

with

the

Anderson

St.
a

and

service

projects between 1955

1956.

Expenditures for mili¬

Inc.,

York

W.,

Marietta
of

the

Exchange.

He

members

Stock

previously

was

with

Trust

the

Company of Georgia.'

Now With Wm. R. Staats

With Walston & Co.

large

SAN FRANCISCO, Calif.—Har¬
old

(Special to The Financial Chronic£e)

locally owned miscellaneous pub¬
lic

Company,

N.

(Special to The Financial Chronicle)

Law¬

share of the increase in State and

discussions. We have built

Cook

,308 South County Road.

facilities

Seaway account for

Sidney

—

ATLANTA, Ga. — Ralph W.
Williams, Jr. has become associ¬

New

Hirsch has become affiliated with

record

new

BEACH, Fla.

Joins Courts Staff

Street,

(Special to The Financial Chronicle)

of

2$

(Special to The Financial Chronicle)

ated with Courts & Co., 11

esti¬

types

fully
three-fourths of the rise in public
construction expenditures in 1956,

them on a long-range basis of
strengthening United States
power. We are engaged in a
regular, permanent strengthen¬
ing program." — Rowland R.
Hughes, Director of the Budget.

The dollar values of

housing and conservation
and development work are ex¬
pected to increase in 1956 for the

growing backlog of con¬
struction needs despite increasing
outlays for
new
projects. Re¬ first time in several years.
quirements are especially pressing
for highways, schools, and sewer
Joins Anderson Cook

we

ment to

ing the postwar period State and
with

still hope to balance the budget. And
secondly, that will not be done in any way at the
expense of military strength and power. The re¬
quirements of those necessities of course come first.
"We are continuing to make
efforts throughout the govern¬
"First,

(2213)

SACRAMENTO, Calif.

O'Malley,

—

Albert

Jr. has been added to

the staff of Walston &

Co., 926 J

Street.

tary facilities next year will con¬

D.

nected

Padgett has become
with William R.

Co., Ill Sutter Street.
gett

was

con¬

Staats Cc

Mr. Pad¬

previously with Francis

I. du Pont & Co.

*

Hu*hes

\ye

hope Mr. Hughes and the

others will

regardless

of

the

abuse

stick

heaped

;

;

their guns

to

them

upon

!

by

The Beneficial Man is

Democratic leaders.

U. S. Commerce and Labor

activity,

a

$44 billion total

or

5

The Beneficial

5% increase in construction

ou'.lays over current year. Sees no serious materials short¬
and holds there is adequate investment funds both for

finance the purchase of consumer

public and private projects.
construction

expenditures
may reach a record-breaking total
of $44 billion in 1956, 5% above
the $42 billion peak indicated for
1955, according to estimates pre¬
pared jointly by the Labor and
Commerce Departments. Substan¬
tial gains are anticipated in pri¬
non-residential

vate

New

construction.

and

public

housing,

al¬

though slightly below this year's
volume, is expected to continue
at a high level.
A more detailed report on the
outlook
will
appear
later this
in the

month

issue

November

"Construction Review,"

of

published

jointly by the Business and De¬
Services

fense

Administration

of

the Department of Commerce and
the Department of Labor's Bureau
of Labor Statistics.
The 1956 estimates are based on

moderate in¬

the assumption of a

in over-all economic activ¬

crease

They reflect also the tremen¬

ity.

dous volume
in

of construction now

much of which will

progress,

in

1956

1955

1950

and

1956

results

from

in

times,

prosperous

of

ume

abandoned,
from

the

cline

in

origin

bousing

the

in

when

Most

the

of

construction
1956
in

increase in

between

which

construction,
more

is expected to
to

more

dential

building to $8.7 billion—

industrial

building showing

the largest relative gain.

value

The

billion.

of private

construction

will

re¬

$16 billion in the coming year.
decrease in the dollar
value
new

A
of

homebuilding will be largely
by greater outlays for ad¬

offset

homes

and
and

motels and

alterations
for

older

to

construction

of

other non-housekeep¬

ing residential units. Expenditures
for
new
housing will Reflect a
continuing

trend

homes with more
as

well

as

toward

larger

quality features,

moderately higher

con¬

struction costs, so that dollar out¬

lays

will

expected

struction of

nature

of

level.
will

keep
nological change.
Probable

1956

billion

service

along

in

pace

stores

establishments

to

with tech¬

and

of

other

many in
developments and

expanding

works—are

of

the

expenditures

for

suburban

new

Some
be

plant modernization

cut costs and

$2%

ex¬
con¬

production facili¬

new

record

a

prospects
rise in

17%

—

highway

net¬

above" the

1955

and 80% above that for 1954.

record

$850 million is in

for

pect

religious

pros¬

buildings

in

1956.

In 1955, more

families

the 1955 level of over

near

ditions

production, favor¬
positions, and excellent

the

plain

A

non-farm

Expand¬

industrial

rise 10% in 1956— total

than $13

residential
main

recent

in

has increased steadily but
slowly than private work,

years

and

anticipated from the rise
expenditures for new non-resi¬

with

in

slightly above the
1955 total of $30 billion.
Public

private

1955-

is

construction

set

its

1955

.

became
relatively
long-term, low downpayment mortgages at low inter¬
est rates,
thus affecting the fi¬
nancing of homes to be started
early next year.

the

are

of

funds

assumed

1956

BENEFICIAL loan is for a beneficial purpose.

for

scarce

to

adequate to underwrite the
level of both private

a

units)

had

starts

ties

be

....

(demolished,

latter part

long-range market

estimated

their financial

in the community.

housing supply, as well
as
from population increase and
mobility. The expected 1956 de¬

continue to rise moderately. In¬
creased plant capacity and rising
productivity will prevent all but
minor or spot material shortages.
to

everyone

wide¬

converted

or

good neighbor because by helping

large vol¬

a

retirements

able profit

and public construction.
Private construction outlays

affairs, he helps

spread demand for better housing

Construction costs are expected to

were

the

a

individual families successfully manage

200,000 less than the

ing

funds

The Beneficial Man is

about

peak.

be carried over into the new year.

Investment

at

Basically, this rela¬
tively high level of homebuilding
in

and also to help

goods and services.

m

estimated

are

>,200,000 units—100,000 fewer than
in

Man's job is to make small loans to families

who want extra cash for worthwhile purposes

ages,

New

Good Man to Know

a

basis of moderate increase in over-all economic

on

not

drop

as

much

housing starts.
Private non-farm

New

construction

expenditures
of privately owned public utilities
in the coming year are expected
to

remain

$4%

near

the

1955

level

of

are

being served by Beneficial

than

ever

before-

billion, with substantial in¬

creases

grams

the

in

construction

of railroads and

pro¬

telephone

Over 950

offices in the United States and Canada

and

telegraph companies offset by
activity on the part of
electrical and gas companies. An
anticipated reduction in farm con¬
decreased

struction

is

based

chiefly

on

re¬

as' tion in 1956 is for

10%

over

1955

public construc¬
a

rise of about

BENEFICIAL BUILDING

expenditures, with

housing starts gains in all major categories. Dur-




Co-.

uiance

cent declines in farm income.

The outlook for

V

!

I.

Departments Expect
Construction Outlays to Attain New High in 1956
Forecasts,

|

i

•

WILMINGTON, DELAWARE

#•

*

1

(2214)

so

The Commercial and Financial Chronicle

without experience, and to adopt
an
affirmative viewpoint of pre¬

Expanding Markets

paring
trust

For Trust Services

ourselves

business,

institutional

the

to

President, The Merchants National Bank of Boston

customer

immense dimensions

of potential trust
fields of expansion: (1) the
management of small estates, and (2) the management of
estates consisting of real property of business interests and of
of

securities

as

closely held corporations.

Says

considerable

a

outlook,

and therefore the time has

come

acquire

though risks

are

be handled by

In

world

a

orous

growth

wealth

of

in

the

is

the

vig¬

material

nation.

our

provides

That

this

a

continuing
opportunity
for the steady
development
of

field.

trust

uals

safe in estimating them as in ex¬
cess of $300
billion by now.

busi¬

ly evident.
we

As

If

4,179,000

there

measure,

businesses

all

of

types in operation in this country
on
Jan.
1,
1953, according to

our

business

yet another

were

to

were

develop

in

present fields
trust serv¬

Department of Commerce figures,
of which only 539,000 were cor¬
porate. Of these latter, the S.E.C.

ice, this alone

has

of

could

a

longed

pro¬

Richard

P.

In

two

immense

dimensions

of

service, however,
scarcely scratched the

surface. One of these is in
serving
the small estate. We have talked

good deal about it, particularly
during the period when it was
fashionable to say that no more
estates

would

be

created

because

of
progressive
income
inheritance taxes, a forecast
that has now proved rather wide

and

of the mark, at least for this
gen¬
eration.
We
also
have made a
of

measure

the

progress,

of

fund

device,

almost

becomes

tractive

vehicle

high

remain to

the

account

and

common

prohibitively

before

in

but'elements

servicing costs still
licked

a

notably

development of the

trust

small

an

It

for

be

at¬

trustee

beneficiary. We will be doing
to

the

American

public when we solve this
tion, as I believe we must.

My

particular

equa¬

interest

today,

for

our

services,
namely,
consisting primarily
of
property, business interests,

estates
real

securities

or

of

closely held

cor¬

porations

as against estates
large¬
comprised of assets such as

ly

marketable

stocks
and
bonds,
deposits, and life insurance

bank

contracts.

of

sented

by

That I do not
size

by

of this
an

overestimate the

potential

interesting

is

indicated

article,

"Who

Owns the Nation's Wealth?" in
the
April
1953
issue
of
"Business

Record,"
National

published

by
the
Conference

Industrial

Board, in which

the net consumer

wealth

nation

mated

of
as

the

was

esti¬

exceeding

known

no

means

number

property.

cash,
were

produc¬

Insurance equities,

and
marketable securities
estimated at $280 billion.

The

remaining $265 billion, or
one-third of total private
wealth,
represent the kind of assets I
*An

fhe

address

by Mr. Chapman
Mid-Continent
Trust

Houston, Texas, Nov. 3, 1955.




am

before

Conference,

of

introduce

new.

of

trust services.

our

by
increasing

An

|

is

business

interests,
controlling
and
minority,
and covering an exceptional
range
of activity, are being left in the
hands of bank trust
to

extent

an

departments,
which

is

re¬

quiring many of the large institu¬
to
set
up
special depart¬

tions

ments
with

other

or

the

facilities

problems

to

and

ness

which

banks

have

taken

success¬

fully under their wing for at least
temporary periods would consume
all

of

has

time. General

my

become

interest

that

great

so

the

Division

has been obliged
standing committee
on the
Handling of Businesses in
Trust, of which Art Pfleiderer of

to

create

a

the Detroit Trust

Company is the
competent chairman, and he and
others

have

conferences

special
This

both

problems

in

trust

our

general
this

and

field.

sharing of experi¬
will continue to go forward

generous

ence

for

addressed
on

our

education

common

and

benefit, and it is highly essential,
have

much

function

new

to

learn

if

we

competently

in

areas.

the

specifics

to

those

qualified

by greater experience,
my purpose today is to advance a
thesis which I strongly hold, that
the
don

time

has

what

now

seems

come

to

me

to
to

aban¬
be

a

generally apologetic and defensive
attitude toward accepting accounts

prede¬

a

or

responsibility for
conduct of the

no

Or, where such policies

avoidance

ineffective

are

in

barring the door to responsibility,
there is too often a disposition to

dispose of the business
the first

on

bona

though there be
clash

for

course,

the

world

the

for

offer, even
real need for

no

estate

these

be

may

received

so

fide

itself.

frequently

very

of

more

the

of

courses

wisest

thing

estate

Of

one

or

action

in

the

in

question,
but this "red hot poker" type of
approach is hardly calculated to
the

produce

best

beneficiaries

is

and

all

result
all

under

for

the

conditions

too

obviously loaded,
subconsciously, on the
side of minimizing the bank's ac¬
however

ceptance of responsibility, as dis¬
tinguished from exposure to risk.
I

believe we can expect to
large figure in this field, re¬
quiring as it does the application
don't

cut

of

a

available

its continuance

It

estate.

ably

is

something
weighty
in
granting

have

is,

stated

institution to determine
the basis of its

on

own

positive terms, this
course, a matter for each

of

and

my

in

for

itself

tively
should

Electric, to be sure, but it is
our daily decisions as

bankers.
We need

claim to expertness

no

qualifications, which rest

to

ance

lems,

help solve business prob¬

and

in

the

banks

from

actively
entering this field. Let us review,
then, some of the more important
objections or drawbacks that have
been raised.
The Question of

Competency of
Trusteeship

First

is

the

question

of

com¬

petency

to fulfill the obligations
trusteeship where specialized
and
"closely held" assets com¬
prise most of the corpus. Cer¬
tainly no bank should seek or
accept appointments where it does
not
feel
itself qualified
to dis¬
charge the duties involved. This
is
perhaps the most important
single question to ask ourselves,
of

and

we

our

to

owe

own

candor.

But

observed.

is relative. If

the

customers and

with

fulfill
him

daily life

in

a

life

lay down
qualifications for

them,

much

the

United

mortal

reports, upon
specialized experience in trust

administration,
reputation
the

and

for

would

we

did?).

In

reach the best avail¬

we

to

answer

our

problems

business

rarely has

a

as

owner

single

perfect solution to the problems
involved in settling his estate; he,
too, faces compromise. His perfect
solution might well be to name
as
fiduciary an able, experienced
and

resourceful

businessman,

such

estates—

tens of thousands

can

perform services

meeting the needs
of

our

customers;

elaborate administrative

is

not

a

prerequisite
where
competent, mature, and ex¬
perienced officers are available to
such estates.

serve

Our

second

major question re¬
legal aspects of

volves around the

the
of

duties, powers, and liabilities
the

executor-trustee

both

publicly

for

of

our

banks

some

obtained
this

sufficient

a

have

volume

of

business,

they have gained
only
considerable
practical experience but the
opportunity for specialization of
services, whether by creating athereby

in

han¬

some

cases, by delegating senior officers
for full-time

service,

by setting

or

special units. While these
such

partments

obvious

not

it

do

think

is

op-,

trust

de¬

advantages,

follows

that

I

this

the

special province of
larger trust institutions only. The
most

for

important single requisite
dealing with these unusual

estate

problems is ordinary com¬

necessarily

indeed, will tell
tackle

coupled

business

Common

sense,

when

us

and

not

to

something for which we
equipped; but experienced

not

ments

of

smaller

trust

depart¬

qualified
to
handle
the estate problems in

by

sion

for

the

business

interest

or

closely held corporation in
law, and
indeed
it
runs
to

historic

some

including

diversification

of

the

trust

rule

risk.

of

Where

a

controlling interest in a corpora¬
tion is held, the
relationship of
the fiduciary to the
corporation
and its minority stockholders is
laregly
undefined.
Where
the
business
know

is

that

unincorporated,
in

carrying

assortment
of

of

which

covered

we

considerable

liabilities,
be

can

we

on

all

not

adequately

by insurance.

.The

Question

of Accepting
Responsibilities

Numerous

problems

and

are,

It

is

real

in

these

as

has

none

insurmountable
date.

a

it

proved

experience
wise

never

to

to

accept
duties and responsibilities without

corresponding grants of powers;
lacking the latter, as where the
is silent, we operate in this
specialized field at our peril. It is
quite
unwise
to
depart
from
will

normal

estate

principles

and

and

trusteeship

practices

without
specific and full authorization for

doing so.
In fact, the most important ini¬
tial

requirement

strument

under

be

serve

is

that

which

the

the

we

in¬

are

product

of

to
an

experienced and competent drafts¬
man, and convey the broad powers
needed to retain and handle busi¬

are

of

many

their

communities

these

categories.

Individual

falling

as

Fiduciary

fiduciary

be

more

in

his

aggressive

approach

business

than

nesses

or

with

doing.

While

and

to

can

handling

traditionally inclines to the
I suspect that

times

another

way

a

bank, which

a

tious.

can

flexible

this is

cau¬

some¬

of saying that

bank would not countenance the

is

interests

property

trust,
latter

Bank

vs.

within

It is said, and not without
truth,
that an individual as

a

privately

very real problems
indeed. There is no special provi¬

not

separate trust committee in

up

and

subject ourselves to

Where

exonerations

the

value

untested

in

for

in
so

of

these

many

juris¬

dictions, it is important to
exculpatory clauses.

have

Of almost equal importance, and
in the testator's interest, is

also

that the bank be consulted
the

estate

planning

during
and

process

before final execution. We thereby
familiarize ourselves in advance
with the problems of the testator's
estate
his

and

of

wishes

his

business, learn
objectives first¬

and

cutting of corners, legal and eth¬
ical, sometimes practiced in busi¬
We
cheerfully yield
any
such business to others, for it is
no part of our
duty to anyone to

hand, work in

lower

general language is always valu¬

ness.

But
a

standards

our

of

conduct.

individual might well have

an

positive

more

attitude

toward

taking
new
risks
or
toward
aggressive expansion of a business
in

held

trust

than

would

a

bank

a preliminary way
legal counsel, insurance
and
tax
advisers,
and
trusted
business
associates, and review
the provisions of the will. While

with

able

his

in

enlarging powers, it is
closely held in¬
by name, and
language
conveying
the

desirable to have
terests

the

mentioned

should

powers

be

directed

as

normally; in this respect I believe
that we must adopt a more pro¬
gressive point of view, in recog¬

specifically as possible, without
limiting their generality, to the

nition

unique

»f

the

cannot

fact

that

stand

forward

move

any

busi¬

business

still, and must

or

stagnate.

paraphrase Churchill,

we

To

are

not

In

any

advance
of

interest

problems

and

us

instrument
powers

But

there

family empires.

undeniably many
businesses
requiring special
knowledge or aptitudes which fit
better

in

under

the

rary,

of

a

are

some

other

frame

than

wing, however tempo¬

trust department. We all

recognize this.

thoroughly

that

with

estate

usually,

It

is
a

no

part

bank

best

of

my argument
always, or even
fitted for the role

is

long

and

any

poses.

drawn

clear

us

exonerations

toward

risks

well

a

granting

and

way

tential

have

to

appointed fiduciary to preside at
of

held

it

event, to understand in
exactly what is expected

the dissolution

ness,

conversant also
settlement and trust

our

and

duties.

ness

he

upon

integrity
discharge

faithful

man

(or

if

they arise. The successful
of

in¬

to

we were

Presidency
of
States, would any
like

of

sense

two points to

Everything

desired

of

become

we

a

are

the

ever

duty

a

before

adequacy, there

all

our

institution

overwhelmed

be

comprehension

of detailed financial
our

officers

deterred

that

machinery

counter

are

have

and

concepts,

experience.

may

upon

experience in dealing with
appraising business manage¬
ments, in obtaining expert assist¬

trust

which

we

problems

broad

well-rounded

inertia,

of

of real value in
and

others,
fiduci¬

business

a

trust; that taking
whole, there is a

a

large potential

and

with

reasons,

as

running into the

trust

prudent for
and

left in

—where

the

carefully reached
judgments as to policies and prac¬
tices. As a preliminary, it is only
the

be

nation

in any line of business to advance

Any program of ac¬
seeking
such
business

to examine closely
other than tradition

to

the

our

sense,

us

where property or

ary

is

with

members of the bar, and we know
that they pose

than

r.ot alien to

mon

follow

serve as

eral

experience

own

outlook.

or

dling business interests in trust.
They have been explored for us

field
I

bank, acting alone
is well
qualified to

is
involved
a
routine
proxy to the management of Gen¬

duties.
While

in

consider¬

more

portunities afford

conclusion

trust asset

a

light both of its changing out¬
and the particular require¬
ments and objectives of the trust
look

thoroughly familiar with his busi¬

or property in
attitude not confined to
institutions
and
those

as

of executor-trustee in
this type of
My conclusion is simply that
there are many instances
where a

case.

the

involving business
smaller

pos¬

merits, we need
objective appraisals

suffer by

trust,

an

individuals

highest abilities, if our am¬
bition does not reach beyond the
performance of merely
routine
our

able

Leaving

with

business.

A

listing of the kinds of busi¬
agricultural enterprises

mere

of

exceptional

not

subsequent

deal

involved.

formula,

individ¬

to turn
management to named indi¬

their

of

named

accordance with

viduals

well

both

these

and

securities

subject I

the value of
appliances accounted
for $200 billion of
this,
cash

is repre¬
than the

other

corporations.

The

to

in

productive

people

our

assets

applications of

we

billion

the

that I foresee the opportunity for
much broader and more effective

are

tive

of

considerable

a

the

to

for

$545

mar¬

Reducing
aggregate of personal
estates
in
the
whole
country
largely so invested represents a
significant
percentage
of
total
private wealth. It is in this area
this

$745 billion
at the
beginning of 1952. Equities
in residences and
automobiles and

leaving

that

marketable

Trust

The Segments of Private Wealth

clear

wealth

and

however, is in exploring the other
great and largely unrealized mar¬
ket

is

proportion

trust

equally

both

great service

substitute

we

valuations, it would be quite
a
different story, since shares of
large companies are almost uni¬
versally marketable, but nonethe¬
less my point remains.

a

large

that

ket

trust

have

we

estimated

their stocks. If

period

of active growth.

potential

recently

only
2% by number enjoy reasonably
market quotations for
Chapman adequate

provide

with

us

in

to

termined price

discussing: it was divided about
$100 billion in farm-owner assets,
$100
billion
in
non-farm
real
estate, and $65 billion in unincor¬
porated
business
and
privately
owned
corporations.
Obviously
these figures would be substan¬
tially higher in 1955, and I feel

is equal¬

ness

to

test

and

to

interests

ness

careful planning and experience.

of many controver¬

obvious fact

one

where
sess

regressive

liquefy
the
estate
by life insurance or by
other means, or to provide ma¬
chinery for disposing of the busi¬

over

sies

claim
a

not

whether

Concludes,
real and difficult, the management of property

in trust

can

this

in

competency

can't
such

on

qualifications, but we do score
high, and except in the instances

and

avoid

grounds,

for banks and trust companies to accept accounts involving
business or property in trust.
Accordingly, he urges trustee
institutions

to

servable in the determined effort,
however
praiseworthy on other

portion of productive wealth is represented by assets other
than marketable securities

be

to

We

100%

score

customers.

our

testator's family and

comparisons.
weighted by a
merely pos¬
Remember, too, that the prob¬
sible liability to the
bank, but lem is not to run a business or a
the assumption of any responsibil¬ farm on a daily basis, but to see
ity for intelligent judgments after that it has competent operating
the
testator's
death, except on management, then to follow its
routine estate matters. In estate affairs
carefully, and to make
planning this is sometimes ob¬ timely and proper decisions as to
in

desire

out the

policies

the

to

it|S" affairs.

adopting
welcoming

Our present
approach to this
type of estate all too often appears

President, Trust Division, American Bankers Association

In pointing

such

of

and

such accounts from

By RICHARD P. CHAPMAN*

services, Mr. Chapman lists

handle

to

administration, and selflessly de¬
voted

Thursday, November 24,1955 "

...

to

go

a

eliminating po¬

the

bank

in

ac¬

cepting such appointments.
We may not always have
consulted in advance, and in

been
such
again lean heavily
on able and seasoned legal counsel
in the interpretation of our duties
and powers. I strongly urge that
cases

we

must

in this whole field

we

educate our

Number 5484

Volume 182

.

.

The Commercial

.

customers to advance consultation

that

so

and they may be fully

we

acquainted

with

respective

our

problems, and so that we shall
not, when too late, find that there
is no effective way to accomplish
the
objectives, or perhaps not
without in doing so subjecting the
bank to a degree of risk which
it

should

not

collateral

In

assume.

fact

a

for my view that

reason

should

actively seek this type
of business is that, in so doing,
we
are
much more likely to be
consulted
at
an
early planning
stage, which works to the mutual
we

benefit

of

the

bank

Indeed, it
to

in their

is

interest

own

do

so, to provide adequate incentive
for
trustees
to
accept
these heavier burdens.
is

Tfnr

fa0Ctf ^ SOluti°,n
thl+1™? +° specJfy

thp riffht nf

the

sulted

in

has been

bank

advance,

ligation to

it has

changes of
conversely it has
has

extraor-

dinary

duties

reasonable

involved.

In

compensation"

auired
quired,

anH

juris-

Whe^P

fo

circumstances.

qualified

under

instrument with which

an

satisfied,
means

problems

our

but

review

our

charge

our

best of

tain that such

would

to

assuming

no

bank.

is

doubly

by

are

routine

that

we

cer¬

never

level,

it

would

be

risks for

undue

good

practice

be

freely on the problems aris¬
ing during the administration of

more

such estates and trusts than would

otherwise
Each

be

considered

is

case

generalizations
here

than

of

are

in

needful.

different

so

field

I

stressed.

a

ob¬

asking for prior
action where

question of interpretation of the

language of the instrument
the

law

is

involved.

In

or

some

of

in¬

stances effective protection is pos¬
sible by obtaining approval of our
actions by the
is

beneficiaries, which

particularly

instrument

useful

itself

where

offers

the

help.
The fiduciary is operating outside
of the

broad

historical pattern of

therefore

relieved
In

of

is

liability for
the

summary,

duties

and

entitled

to

be

doing.

so

problems

of

involved, and
attendant
risks of liability,
real and difficult, but expe¬

the
are

rience

powers

would

indicate

that

they

be

brought within bounds by
planning
and
expert
draftmanship.
can

careful

The

Question

of

The
this

third
to

in ob¬

taining adequate compensation. It
is correctly pointed out that these
accounts
require
substantially
work

more

than

and

responsibility

do

most
trust
accounts,
generally governed by
relatively simple and well-under¬

which

stood

are

and duties, and

powers

are

invested in well-known and easy-

to-follow
in

held

securities,
other

our

commonly
In

accounts.

states fiduciary fees are
governed by statute, and in those
many

states

where

the

rule

is

one

of

reasonable compensation, there is
a

burden of proof on a trustee to

justify charging a
special fee,
higher than the common expecta¬
tion in that jurisdiction.
I

do

tion,

not

much.

think that this

analysis,

on

We

are

objec¬

amounts

to
clearly entitled to

fairly paid for what we do,
and it requires no great effort to
show that this type of account re¬
be

quires

an

attention

exceptional degree

of

best personnel.
Both the quantity and quality of
by

performance
and

want

most
to

of
pay

our

called
our

it

will

possible

prove

factory

fee,

should

to

for

is

high,

customers

adequately




not

always

obtain

but

the

disappear

in

satis-

a

exceptions
time

the

as

reasons

much

less

before

WASHINGTON,

C.

D.

—

The

members of District No. 11 of the

offices at

573

gage in a

securities business.

for

will

it.

Mills

Street

to

en-

Of-

you

£3^

'toxoid such^es- fencing next January 16th:

fates, I respectfully suggest
you re-examine it.

nnl

mnderatP

can

great 0r greater

as

as in other categories
wealth.
if

Enlightened

acting

businesses

largely
bank

have

in

Fulton
Mr

National

Albricht

field

nothing

else

dictates

exolore'this

here

that

the

GXDire

fono^ng

on

the

whose

terms

(Special to The Financial Chronicle)

fully

and

Glenn E. Anderson, Carolina
Securities Corp., Raleigh, North

constructivefy, lubstitutij

for

Carolina; Edwin B. Horner, Scott,

sh0uld

potential
the

trust

negative

large

service

and

of

area

atti-, Horner

defensive

&

Mason,

Virginia;

7.

Alex. Brown & Sons, Baltimore,
Maryland; W. Olin Nisbet, Jr.,
Interstate Securities Corp., Charlotte, North Carolina.

g
pre™lent tne p0S*
e aPProacb
discovenng and
u

F.

Lynchburg,

tudes Ions too prevalent the posi-

Grainger

Marburg,

SAN

FRANCISCO, Calif.—Earl
.

R. Carper is_ now with Wilson,
Johnson

gomery
San
He

&

Francisco

was

to

money

corporations

in

our

general

which

it

fiduciary capacity,
indirectly assum¬
ing the role of employer of some
of its most important
customers,
or
possibly — even worse
of
sometimes

one

of

its

directors!

own

It

can

find itself holding
competing bus¬
inesses in trust. The possibilities
are

almost endless,

100th Annual Statement

involving both
complications and difficult
problems of policy and public re¬

legal

lations.

Doubtless

delicate

decisions

ally confront
find

will

occasion¬

and we may well
obliged to decline

otherwise

desirable

or

an¬

we

can

properly

believe

that

While

should

we

should

pared

also

It

protection,
each

it

when

should

be

however,

that arises

case

that

Total

to

that

it

handle

is

.

.

.

.

...

711,332,734 f 626,599,407

Quick Assets

520,311,204

Mortgage Loans

......

.

.

Deposits

............

.

Other Liabilities

.

.

in

properly

Total Liabilities to the Public

qualified

accounts;

second,

work

and

.

.

475,826,551

14,691,553

3,049,430

18,464,377

18,332,703

13,728,435

7,974,666

145,616

271,373

1,278,673,919

1,132,054,130

1,213,604,184

1,073,938,063

3,485,949

3,263,802

1,217,090,133

1,077,201,865

Acceptances and Letters of Credit..

.

13,728,435

7,974,666

Capital paid-up

.

15,000,000

15,000,000

30,000,000

30,000,000

Rest Account

risks; and third, that it is difficult
to obtain adequate compensation
extra

.

Liabilities

that they can involve it in undue

for the

37,556,434

.

.

rule

trust, then,
the bank may not

such

391,542,573

47,619,149

.

Sundry Assets

three principal objections
welcoming
businesses
and

feel

432,344,344

.

Acceptances and Letters of Credit

The

first, that

............

merits,

adopting a general
refusing to serve at all.

interests

$197,500,400

Bank Premises

is

decide

its

on

1954

$231,36.9,241

Current Loans
N.H.A.

sufficient

to

without

of

Securities
Call Loans

willing to
type of trust,
equally pre¬

be

to decline

desirable.

I

1955
..........

Cash Resources

be

accept this general
we

AS AT OCTOBER 31

Assets

busi¬

that, for one reason
other, we do not feel that
ness

accept.

Comparative and Condensed

really

us,

ourselves

some

some

Undivided Profits

responsi¬

2,855,351

1,877,599

1,278,673,919

1,132,054,130

bility involved. While I have dis¬
them

cussed

only briefly, this is
limitations, and
hope that no one has the impres¬

because
I

sion

of

that

time

I

dismiss

them

Statement

flection, but I
of

them

Profits after

lightly.

to

poses

forward.

go

and these

ceive

who

us

time

on,

principal objections

re¬

both

Less:

wish

goes

and

more

from

As

more

vary

to

deal

we

equities;
be

may

mineral
exact

face

experience will

section, just as
problems will. In New Eng¬

land

a

and

largely

in

urban

real

elsewhere

the

1,303,517

2,878,010

Net Profit

3,227,752

2,844,116

Less: Dividends

1,950,000

1,750,000

300,000

180,000

977,752

914,116

Balance of Undivided Profits

*

businesses

1,423,250
2,852,000

Undivided Profits brought forward

ex¬

meeting them should
serve
gradually to reduce their
significance.

our

*1954

7,025,643

Income Taxes

.

Undivided Profits

lawyers and trustmen,

section

1955

7,503,002

Depreciation.

Provision for Extra distribution

perience in

from

reserves

attention

the accumulation of practical

Doubtless

making transfers to

contingency

believe that none
an insurmountable

problem to those of

of Undivided Profits

Fiscal Tears ended October 31

On the contrary, they are formid¬
able and demand our careful re¬

family
estate

emphasis

farms, ranches, or
rights.
Whatever
the

on

problems, I believe that we
wide range of possibilities

Combined figures

i.

.

....

1,877,599

963,483

2,855,351

1,877,599

of the former Batik of Toronto and the former

Dominion Bank for fiscal

petiods ended October 31, 1954.

Stock

Mont¬
of

the

Exchange.

formerly with Stephenson,

a

but

300

members

Leydecker & Co.

liability. For example, a
only finds itself lending

controls

Higgins,

Street,

policy and public relations,

sible

with

With Wilson Johnson

date-

same

expire on ine-same aaie*

we

distinct from questions of
pos¬

as

Building.

Dreviouslv

They succeed to the offices held

°£.P"vat? by

advanced,
of

Bank

was

Mr- Aiongnt was previously witn

closely held

been

the

t

with Hancock, Blackstock & Co.,

cov¬

other objections to

trustee for

as

«

North Carolina; J. Nathan McCar-

self-interest,

exist.

some

Company Ine, Lynchburg,
Virginia, Robert B. Dixon, Mc2an*J
^-S

cash and conventional securities, ley, Jr
McCarley. & Company, Merrill Lynch, Pierce, Fenner &
and yet the need for trust services Asheville, North Carolina.
Beane.

removing whatever obstacles may

Beyond those that I have

ATLANTA, Ga.—Edward A. Al-

IT'lA straderr Strader, Taylor bright, Jr. has become affiliated

&

of

resources

stood

ered,

(Special to The Financial Chronicle)

& Co., Baltimore, Maryland; Lud-

of the $300 bilIion or more of
Property today in the general
categ°ry 1 have been discussing,
a substantial total is in hands havin-

*

J. William Butler, Baker, Watts

that

supporting extra compensation become more
widely under-

are

is the difficulty

aTref

an

extra

Probably

property

major
objection
serving actively in

our

field

schedules

f

by the current beneficiaries

approve

to

Adequate

Compensation
raised

fpl I!^SSfS'

v.

previson

no

trusteeship by request and design,
and

1 certainly do not favor jumping
into deep water before learning

ments, Inc., has been formed with

—

Sometimes it is possible to
an

fho

and

.

use

know, and the value of competent
legal guidance throughout the life
of the account can hardly be over-

tain protection by
court approval of

RENO, Nevada—Utility Invest¬

Elects to Committee

created

swim,

Form Utility Investments

bank not

less

other

any

that

from^vn^^^'fd by

compensation
frequently removes the problem,

our

to

by consulting counsel

sure

to

no

we

account is

an

a

appear

It

are

abilities, making

our

reduced

if

we

carefully
legal powers, and dis¬
duties fully and to the

over;

rp«nnnciKH^t"
responsibilities

and

snedal

ment

have

tfmp rpY

dene

stat^t^rv

nrevaii

the

we

can

testimon'v

first

Once

a

an" extra eharl
f°r
ft
he s.fnnLtL
n"

making

work

without
scrutinizing the instrument,
business, and the surrounding
no

NASD District No. 11

in

have

nn

records'of

appointment
prior knowledge,

they

-

clear

accept

values

,

reached

duty
where it

conserving the

oppor-

customers

our

-

ob¬

circumstances;
no

serve

a formula
pelling urgency in this matter, but North Carolina, Virginia and West dent, and B. M. Cundick, Secretary
Our problem is reallv one of fn™6
y0-'r
1 su y,
Virginia, have elected the follow- and Treasurer.
w/fiJL
D-Jl-F
.en<Lof
this problem, if you have not done in„6tn '
th- riistriet Comeducation
of the bench, the
bar, ^'already "and it" will recur* more inV° frve S." the Dist.rict Com
and the public
to the need for
With Hancock, Blackstock
frequently
as time goes on lf you? mittee tor a three year term com"
extra
payment for the

un¬

an

except under

serve

usual

to

con¬

correspondingly wide

tunity to

re(!eive to

.

and of the estate.
Where

with

sDXedfvirPaennf i0n,t bUt rth0Ut ^enkMw if you want to learn to SeatosSt^emteL^theD'if
H' D' PeterS°n' ^
compensation
such^cases'does ^ PerhaPs the/« is n° c°mT trict of Columbia, Maryland, f"t; M. B. Bnindidge Vice-Presinot lend itself to

fiduciary

as

and Financial Chronicle

32

The Commercial and Financial
Chronicle

(2216)

We found when

Continued from page 11

in the overalls

man
same

today the

are

the basic interests of

as

the

in the business suit.

man

and

Labor

Management

Have

Same Basic Interest

Business

this

fact,

tion

on

long

greater number of
at times wear overalls.
that

all

we

caught

overalls and the

suit

ness

today

and

But, if there is any difference be¬
tween them, it is the man in the
overalls who most needs protec¬
tion. He can less afford to lose.

with

unsound

confiscatory taxa¬
tion that still failed to provide for
the profligate spending. This re¬
in

sulted

huge deficits that

passing the heavy
excesses

for

on

were

burden of our
and

children

our

grandchildren to bear. And sooner

industrial and

with

the

in

the

the

same

is

it

Now,

to be, that

more

commercial system

livelihood

The

made

of all the little savings is tun¬

been

done

financing.

its

for

neled

mainly into big investments
by the savings banks, the building
and loan associations, the insur¬

all

of

been

depends
sum

in the busi¬

have

tomorrow's production
income at a prodigious rate,

from

time

man

man

ing

It is

up

the

how

see

dangerously

who

facts of life in this nation.
Let's

controls,

men

the wants and needs of the

far

of

sorts

spending, and infla¬
tionary pressures. It was borrow¬

equal interest in this fight.

least an

It

all

defense

of

suit have at

the business

in

man

with

dependent upon the uncertainties

in the overalls and the

man

hobbled

to of¬

economy.

growing more and or later it was sure to result in
it is the vast sum complete downfall.
Under the Eisenhower Adminis¬
of the many smaller savings of the
tration, the whole economy, the
man in the overalls on which our

recognized

ago

centered its atten¬

and

The

the

interests of

was

artificial

Prospeiity Without Inflation
Or Deficit Spending!
is that the basic

an

came

we

overblown

fice

the

has

This

has

timely

the

by

people,

safe.

more

of

use

monetary policy and credit in re¬
sponse to actual demand; by the
return to the public of purchas¬

depending upon the day of the
week—the time of day—and their

through the biggest tax
history of the nation,
pension funds, union and fraternal
organizations, and others handling by cutting unjustified government
the savings of the man in the over¬ spending; and at the same time
by timely encouragement to con¬
alls.
home
building,
and
Business in this country is pour¬ struction,
needed
improvements.
By
the
ing nearly $28 billion of new in¬
vestment into its plants and equip¬ prompt and vigorous use of all

occupation

ment

basic

interests

revolutionary
whole

fact

what

first

of

masses

the

|

place these clothes

interchangeable

are

that

to

means

economy:

the

In

and

the

at

great

and

people

our

both

wear

This

moment.

companies, investment trusts,

ance

this year.

That tremendous
from

amount

removal of any gap

savings.
Without it, the
future's new jobs will never be
born, nor will we get tomorrow's
increase in productivity,
as the

Both

have

men

current

earn¬

ings and probably savings in
form

or

both

are

another.

That

one

that

means

must

come

some¬

body's

result

of

better tools of

and

new

production, bought by new invest¬
ment.

seeing the

Saving is important to the na¬

dollar keep its purchasing power.
To the extent that inflation devel¬

tion, and must be encouraged, not
discouraged, because it strongly
influences the security of the job

ops,

interested

both

men

in

robbed.

are

power

cut

fact in itself illustrates the virtual

between them.
But there are many other illus¬
trations of similarity of purpose,
thought and situation.

ing

the

in

these

measures

have made the

we

difficult and delicate change from
a

dangerously artificial

to

healthy one, with

a

exerted
the

the

to

minimum

very

of

terms

effort

involve

to

of

in

cost

unemployment.

In

turning our faces resolutely
inflation,
and
unrealistic
spending, what have we turned

from

had

you

$1,000 saved

saving, every minute of every
day.
When you drew out your
$1,000 savings, inflation had stolen
were

with all but $522 of the
purchasing power your dollars had
when you put them aside in 1939.
away

This is
pen

to

terrible thing to hap¬

a

nation of people who

a

are

working and sweating and scrimp¬
ing to put aside money for the
education

of

purchase of

their

children,

the
home, or to provide

a

for their old age.
The

in the overalls and the

man

in the business suit often
try,
by purchasing insurance, to build
up some security to leave to their

man

wives
of

and

children

untimely death.

thing

to

have

it will

the table
tion

for

the

It is

the

event

terrible

a

purchasing

his insurance—the time

power of

that

in

the rent and set

pay

help with the educa¬

or

those

that

are

left—cut,

nearly in half in the short period
of just 15 years.
It
a

is

man

and

savings in

woman

who put

pension

a

trust

fund

their

lifetime

or

they

as

that

ment

solid

to

retirement

work

find

aside

on

We

have

turned

to you,

166 million people
We

ment

declining

spreading

our

have

halting

infla¬

2% years, the value of the dollar
has changed only one-half of one
cent.
This means that we have
out

and

more

which

of

your

you

a

—you

or

or

fra¬

in any other way

will get from your invest¬

ment the
now

pension fund

same

to put

value that you

into it.




the

only be accomplished by an
that constantly produces

can

economy

of

more

the

comforts,'

with

an

will not only

economy

direct

benefit

will also be
in

the

here

a

whole

at

of

beacon of progress
Free World.

Our strong economy must—and
can—carry the costs

of fully ade¬
quate defense, and of indispensa¬

public

services,

time

and

continue

its

at

the

healthy

growth. But it will only be able to
do

so

if

rectly,

balance the load

we

that

so

carried

it

can

be

carried,
without

indefinitely,

breakdown.

...

,

,

cor¬

,

■.

to the

full

our

toil

situation

new

We

taxation,

we

slave

of

we

have not

ease

credit

exists

the

in

need

new

this

the

was

basis

of

indicated.

cooperation

Administration

that
be¬

must

To

mands.

the

natural

it

burdens

or

Deficit

We will not be rising
will

air

of

de¬

upon

in this

you

continued

is peculiarly a respon¬
sibility of a group such as the
petroleum industry of America.

that

hope for continued
not

on

war

prosper¬
or

scares

jobs, higher income, and better
living, which is the progress of
America. From the seemingly inhaustible spring of American re¬

in

flows

and

try

but

to be

and

progress

It

ness.

base.

We

myth

that

tem

have

shown

dance

laid

free

a

world

free

broad

a

thrive

can

have

investment by

has

to

solid

We

war.

free

that

sys¬

in

men

provide

a

abun¬

an

is

continue
nurturing
spring of re¬

which

one

must

front-runner in

a

the

from

search.

the

rest

enterprise

only in

can

busi¬

and

new

products resulting

opportunities and new
Your indus¬

new

government stimulants,
steady spending by con¬

sumers,

of

stream

a

new

wealth for everyone.

artificial
on

as

products, and new uses for
products which lead to the new

search

based,

industries

such

constantly get the

we

new

ideas

We

from

is

it

yours

America.

ity

of

prosperity

America

sociates

The

of

continuance

good—and
America

in

better—times

even

is

to you and all
the rest of the American people.
If all Americans—workers, pro¬
to

up

It is

you.

up

provide plenty in
peace—far above the capacity of

ducers,
and

investors—go ahead and buy

the

and

build and

government
the

of

can

—

do

economies
^

run

—

world.

The

-

that

best

government

can

to

strengthen our economy is
to provide a fertile field in which

millions

The

of

Americans

continued

work.

can

this

consumers,

improve with con¬

tempered with prudence,

more

enjoying

continue

will

nation

even

of

nation

a

to

be

"haves'*

peaks of prosperity

new

business, production, and wages,

our

ernment, but

businessmen,

fidence

in

of

success

depends, not upon gov¬
upon the efforts of

economy

Continued

and
of

standards

higher

constantly

all the people.

living—for

from first

page

Foreign Economic PolicyPromise and Performance
to

give

them

half

chance.

a

dynamic capitalism I

mean

times tend to

By

forget this—the eco¬
policies of other countries

nomic

sys¬

a

truly free enterprise based
competition without the crutch
cartels

the

and

other

avoid

to

market

the

devices

free

Since what

de¬

ters

play of

Standards *of

place.

country has

of

what

It

is

to

liberated

are

and

from

of

forward

the

each

us,

thejpolicies

In considering

should be,

questions

one

should.ask

we

ourselves is what the effect of the

objectives

moving toward a free world
economy that we have developed

stake in

a

policies

our

the

to

matters

of other countries.

regimentation.

here in the

us

do at home mat¬

we

do

throughout the world can
be raised if the expansive forces
enterprise

on

abroad, and since what other

countries

living

proposed

policy

abroad.

..*

foreign economic program which
will, as the President has said,

be

we

ity based

on

wearing

the hot,
Nor

the

false,

prosper¬

a

unwise and danger¬

on

government deficit

treacherous

expand

inflation.

rose-colored glasses of

ous

Financing

Keep Prosperity

uncertain

alike

to

spending,

the

nation's

security and its economic health.
will

be

rising

the

on

Savings

a

Increased
creased

against
stable dollar;

production

wages and

possible

for

in¬

and

earnings made
investment
of

by
the
those savings in more, new
better tools of production;

and

these

tools

creation

and

of

of

are

investors

of

production for the

jobs

more

and

new,

and

ever-growing number of

con¬

their earning power in¬
and the cost of the goods

as

Use

from

the

the

of

conditions
of

ment

for

a freer move¬
services, capital

goods,

skills

and

is

likely

to

be

bound¬

i;

As

free

a

enterprise

economy,

policies which we follow in¬
clude those of business, labor and
agriculture
must

increased

well

as

.For

government.

as

those

example,

always remember

that

Administration

can

than

the expansion

encourage

do

of

income

production of

free

enterprise

of
In
such

economy,

We

as

inflation, but for the
a

better life for

have

turned

our

stimulants.

trib¬
crea¬

all.

of

Most

through
Korean

a

here

us

have

lived

World
Wars,
the
conflict, the boom of the
two

of

depression

the

'20s,

decade of cold

the

'30s,
Living

war.

through these troubled times,
have I believe learned

on

have

We

confidently to
practical, natural methods for the
of

a

better life for

us—firm

in

the

belief

tinuation

of

the

processes

foreign

our
a

a

all

that

of

economic

consequence,

veloped

erally

backs

faces

our

it is clear that
in

over

we

good deal

American evolution of self-better¬

we

relations.
have de¬

recent years

accepted foreign

a

gen¬

economic

our

actions

we

cannot be

abroad,
guided

policy determinations sole¬

our

ly by this consideration.
strike

a

tween

domestic

reasonable
and

We must

balance

foreign

be¬
con¬

siderations.

Perhaps
refer

that

point I should

this

at

the

happy circumstance
most important element

to

the

foreign economic policy is

our

economic
purpose

ically

It

policy.

is

domestic
firm

our

to maintain an econom¬
United States. We
to
maintain through the

strong

intend

We

have

all

learned

policies

we

quences

for good

that

have

pursue
or

ill

the

conse¬

upon

the

rest of the world.

Equally true—

although

more

larly

our

we

and

friends

particu¬

abroad

some¬

of

process

free

our

and with

economy

of boom and

a

bust.

Fortunately in this respect our
domestic and foreign interests are
the

same.

citizens
our

tain
As

It

is

at

and

one

the

time to the advantage of our

same

and

to

the

advantage of
we main¬

friends abroad that
a

stable progressive economy.
matter

a

contribution

of

fact,

to

greatest

our

economic

health

abroad is the maintenance of eco¬
nomic health

Our_

policy.

con¬

of the

always consider

must

of

enterprise
minimum of
individual business'"enterprises to government
interference, a dy¬
expand their participation in for-, namic economy which while mov¬
ing forward avoids the alternatives
eign trade and investment.
policy is only effective if it re¬
sults in decisions on the part of

a

As

or

effect

also the keystone of our

government
tion of

the

we

the

about the problems arising out of

spending,

Considerations
While

.

of

the things you want—NOT to pay
the bill for unneeded or unwise
ute to

Domestic and Foreign

we

more

no

Balance Between

Reasonable

,

national

across

aries.

and

this increased

countries.

foreign trade and investment.

by Americans who

use

workers

other

aicUto

This program is designed to create

a

Wide
both

direct

A

invest¬

encourage

the

protected

shrinkage by

trade,

ment, help bring about currency
convertibility, and reduce the need

solid

ground of these things:

creation

to

depends

this morning, and your as¬
in the ecpnomic life of

room

It is what makes America.

The

a

No Inflation

effective

respond

and

bear, will bear big fruit.

turned

in

in very large part
what 166 million Americans

It

do.

of

Treasury and the Fed¬
Reserve, the full force of
monetary policy has been made
before

and save,

earn

economy

eral

promptly than ever
the nation's history to

defla¬

or

depends

upon

our

artificial

more

of inflation

excesses

restraint

tween the

better

in

might

decline;

hesitated, either,

restrict

or

when

increase
you

any

aspect of our flexible
policies. We regard inflation as a
public enemy of the worst type.
But

the

that

or allow
to be robbed by inflation.

are

particular

the
tion

fore.

For

high

prosperity
will continue without getting into

Realistic economic policies that
take account of the true nature of

creases

the

not

are

general

take from you by ex¬

or

income

your

sumers

and

this

superior to
anything known in this world be¬
system

our

signed

cessive

an

balancing the load.

Whether

that

efforts

individual

burdens,

the

cheaper goods, with
ever-widening distribution among
fit

inflation.

toward

sures

makes

is the sum total of

It

ones.

these

con¬

.

to

number

all

have their effect

better

•We have devised policies

breaking all records in
of people with jobs,
the high wages they are receiving,
and in
the production of goods
for people to enjoy. And they are
enjoying
this
high
prosperity
while successfully resisting pres¬
the

loved

United States.

We

be

home, but

en¬

Ameri¬

tem of

where

conven¬

iences and necessities of life. Such

Under

save—by putting
money in the bank, by buying a
savings bond, by buying insurance,
by contributing either work or
to

of the Saftid things
man
in the business

more

suit also wants to have. And that

that

money

services

and

spread ever deeper and broader
throughout the whole economy.
Our policies must result in giv¬
ing the man in the overalls ever

to

ternal order

goods

constantly increase, by con¬
tinually increasing individual pro¬
ductivity, so that they can be

savings almost entirely. We want
to keep inflation locked
out, so
when

of

Flexible Balancing Policies

of

kept inflation's hand

The nation's

more.

must

and

made

produce

treasures

Inflation, the

the principal goals of
Administration.
In
the last

one

the

now

of

you

to

same

We in the Eisenhower Adminis¬

tion

at. everyone,
riches throughout

is

peace.

are

all the people trying to do a little
more
for
themselves
and
their

on

efforts

is

Eisenhower Goal

tration

Such

up.

aim

States

sec¬

people.

welfare calls for such support, and

your

otherwise

a

Curbing

bottom

the

must

United

joying plenty—in
cans

is

up

whole

our

do not load you with unnecessary

the land. There is only one way to
have everyone have more and that

ble

years.

from

policies

retire¬

has robbed
them of nearly half of what
they
had invested to live on in their

day-to¬

our

bottom

to

of America.

have turned

your

under

ground

during

inflation

and

day evolution of continual better¬

heartbreaking thing for

a

have,

you

the

toward?

hopes for
up in
fidence
to
a
people who have
1939, which you did not draw out ever-better pay through continued
demonstrated that you are indus¬
in
to use until 1953, you really took increase
your
productivity.
trious,
saving,
inventive, daring,
a beating.
Inflation had sneaked Thus you can see how inflation
progressive and self-reliant to an
into
your
savings during those can rob you not only of your per¬
unprecedented degree. We believe
but,
in addition,
years and
made off with $478. sonal savings
in your capacity to go on provid¬
How?
Because inflationary price steal away your pay increases and
ing yourselves with an ever better
rises during that time cut the pur¬ perhaps even your jobs.
We must have policies that put life, if we in government support
chasing value of the dollars you
If

from

nature

The

economy

every

utmost

ment
ond

Thursday, November 24,1955

..;

and

has

at home.

national

economic

stability—of
a

interest

health—in

the

other

in

the

growth

countries

number of roots.

Expanding
two-way
trade is
importantly dependent upon eco¬
nomic strength abroad.
The ex¬
panding demand for goods and

Volume

182

Number 5484

.

.

The Commercial and Financial Chronicle

.

(2211J
services which would

economic

additional

create

tunities

The

for

American

with

oppor¬

exporters.

the

last

two

exports to Europe

our

underlines

of

the

importance of this

point.

imports which we increas¬
need
are
also dependent
upon the development and main¬
tenance
of
policies making for

be financed

growth and stability in
the supplying countries. Our un¬
happy market experience with
commodities

-

coming

from countries where there is a high degree
of inflation is a striking example
of why we as a consuming nation
interested in economic stabil¬

are

ity abroad.
The

of

network

liances

in

which

defensive

al¬

participate

we

can

only be effective if the par¬
ticipants are economically strong.
Similarly, the ability of countries
which

prefer to follow neutralist
policies to withstand the aggres¬
sive

fully by private means
through international institu¬

tions.

ingly

economic

of

pressures

Communism

and

international

to

retain

their

independence is" contingent upon
their
pursuit of policies which
will
strengthen their economies
and improve the economic posi¬

investment

port-Import Bank, we follow sim¬
ilar policies when we finance such
soundly based projects as cannot
or

The

private

encourage

rather than to replace it.
In the administration of the Ex¬

would

market

experience

years

result from

abroad

progress

Through

technical

our

assist¬

ance

programs,
we
assist other
countries to develop the knowwhich will enable them to

improve

Finally,

while

inclined

to

hardheaded,
ashamed

of

have

we

human

beings,
welfare

we

are

been

hearts.

other

beings, wherever they

As

interested

are

of

we

never

warm

our

in

the

Americans

we

brag that

human

reside.

may

Our Foreign Economic Objectives
If

I

were

broadest

asked

state

to

possible

terms

the

in

my

un¬

derstanding of our foreign eco¬
objectives, I would say that

nomic

follow and

we

other

countries

which

would

based

the

to

result

We

encourage

follow

to

economic

countries.
of

seek

in

soundly

in

progress

shoulder

burden

policies
all

share

our

to

help in the at¬
tainment of this objective.

However,

the

of
the efforts

achievement

this goal depends upon
other countries

of

and

own

I

well

as

our

say

developments

in

provide

grounds

good

as

that recent
many
countries

may

for

I

Again I want to emphasize the

that

it

us

to

to

the

would

Europe.

both

intolerable

It

from

from the
countries
economic growth

of other

their

long-term policy of inter¬

a

It

of

true

is

nomic

that

course

requires

progress

eco¬

satis¬

a

factory rate of investment which
for

many

creased

also

countries
that

investment

some

and

can

in¬

an

of investment.

rate

true

means

It

is

part of this
should come

that

For

the

reason,

Government

States

United

encourages

other countries to

pursue

funds from abroad

as

policies
which will attract to them private

the

United

firmly

of

crease

in

States.

the

as

from

While

we

are

that

an

in¬

view

foreign

well

investment

is

of

rest

world

by

by these programs or
other method. Our efforts

any

in

this

respect

accomplish

can

little

unless

seize

the opportunities which

the

nations

help

we

our

The

big job in

any country has
by the leaders and
people of that country. Materials,
capital and even know-how can

to

be

done

be imported. The spirit of enter¬
prise cannot be imported—it must
be

home-grown.

funds

the free flow of pri¬
our country
to

from

sound

economically

enterprises

abroad.
Even

other

now

are

we

measures

to

considering

help

promote

private investment. As
you know, there is now pending
in the Congress an Administration

foreign

As I have previously
indicated,
one of
the keystones of our for¬

eign

of

United

States

pri¬

vate funds.

We also support
and

the

International
tion.

the World Bank

soon-to-be

established

Finance

Through

Corpora¬

voting rights
in those institutions, we encour¬
age them to lend their funds in
such

a

way

as

cur

to supplement and




increases

in

will rise

fall with decreases

or

or

proportion of imports
by trade agreement

economic

concessions

those

of

policy

of

small

as

indeed.

a

result

Moreover,
many of the remaining imports,
both free and dutiable, have been
our

against tariff increases by

trade agreements.

the reductions
have been widely scattered
among
the various categories of imported
commodities.

Of

import excise

the

tax

there is

for

16

tariff

schedules

dutiable

grouped

or

into

imports

are

customes

none

purposes,
for which the aver¬

reduction through trade
agreements has been appreciably
less

than

most

of

A full
S.

40%.

the

Average

schedules

in

cuts

range

be¬

figure and 60%.

of

level

those

80%.

duties, quite apart from

reductions

Since

in

the

rates

than

more

such.

as

no

two-thirds

of

since

to

small consequence.

effects

In fact, its
the average tariff level

on

the

over

entire

agreements

life

of

great

as

inception

trade agreements program

the

trade

have

program

approximately

as

been

those of

imports

the

actual

tariff

the

which

combination

I

have

to

years

has

of U. S.

dutiable

50%

im¬

dur¬

when rates of the

1930 Tariff Act

cable,

of

mentioned,

ratio

average

collections

ing the

whatever.

to

the

sound

a

economic

country.

must be

If

we

growth
are

with 18

tion

is

devoted

to

the

19%

or

tries to

create the

of

which

will

permit
quate flow of trade.

However,

a

categories

risen

has

one-third

in

45%

the

must

we

in

These

CV^

lem

to

the

tariff.

issue

of the

modifications

were

been

Trade,

GATT.

In

gress

early

dent

stated:

generally
his

this

the

tions

tariffs

our

only

are

to

years'

seven

experience

APRIITHIRTIETH

o/

one

been gradually but signifi¬
cantly reduced through the work¬
ing cut of our trade agreements

THE PORT OF NEW YORK AUTHORITY

program.
Under previous Trade
Agreements legislation, we nego¬

tiated earlier this year an impor¬
tariff agreement with Japan,

tant

and

preparations
to

ence

under

Act

trade
be

the

are

for

early

authority
in full

now

confer¬

next

year

the

new

of

U.

S.

DUE

1983, will be received by the Authority at

reductions

not received adequate rec¬
ognition, either here or abroad, I

would like to review

pressive

If

some

November 30,
Each

im¬

average

rate

would

all

on

have

must

the

day.

series

12%.
of

our

tariff
of

rates.

curred

during

World

War

the

I^T

of the

Authority, 111 Eighth Avenue, New York 11, N. Y.

to be

issued,

may

be obtained at the Office of the Treasurer

THE PORT OF NEW YORK AUTHORITY
DONALD V. LOWE

Chairman

to

two-

has

decade

while

before 6:00 P.M.

EUGENE F. MORAN

Vice-Chairman

reduction

Nearly

this ..reduction

or

Authority and of the resolutions pursuant to which these

HOWARD S. CULLMAN

fully 50% in.-the average level

thirds

rejection of bids at

are

reciprocal

a

or

near

negotiations

This represents

certified check

bonds

date, the average rate on dutiable
imports amounts to only about
of

a

$320,000. The Authority will

dutiable

been

of

of

•

In fact, however, under the
reduced tariffs established through
agreement

accompanied by

amount

the acceptance or

25%.

whole

be

Copies of the prescribed bidding form, of the Official Statement

imports in the

ject to the tariff duties prevailing
just before the passage of the
Trade Agreements Act in
1934,

imports

that

offer

check in

announce

on

of the

States

1955, at its office, 111 Eighth Avenue, New York.

con¬

past few years had still been sub¬

the

cashier's

of them

They constitute an
record of positive

United

SERIES,

12:45 P.M.,

swing.

tariff

have

you.

of $16,000,000 of The Port of New

Authority CONSOLIDATED BONDS, FIFTH

Because I believe that the facts

regarding

or none

York

much

a

agreement

held

Proposals for all

the

oc¬

since
re¬

mainder reflects concessions
nego¬

Honorary Chairman

November 22, 1955

known
to

the
United

year

Continued

less

two-way restric¬
trade, it is important to

on

our

as

Con¬
Presi¬
States

that

the

page

34

fully appli¬

reduced

present

note that United States tariff rates

in

message

"The

This in my judgment is not

While

foreign

and the other participating coun¬
tries concluded on the basis of

lem of trade.

of

to
At

have, since World
II, been negotiated under a
system of rules developed through

adequate approach to the prob¬

an

years.

tariff structure

^5^

American

recent

1930's

War

the

resist

about

from

early

tariff reductions upon our
trade.

ade¬

over-simplify this
problem. All too frequently there
is a tendency to reduce this prob¬

compared

least in part, this undoubtedly re¬
flects
the
stimulating effect of

.ESTABLISHED

to

as

imports
sharply than
duty-free entries over this period,
so that the
proportion of our total
imports which falls in dutiable

world,

more

of

dutiable

more

cluding the full convertibility cf
the major currencies of the

are

before the initia¬

Incidentally,

mm

conditions, in¬

goods

calculation

have expanded

of

coun¬

total

duty

gram.

goods,

job

our

any

tion of the trade agreements pro¬

services and capital than now ex¬
ists. To this end, the Administra¬

working together with other

these

the

all imports, we
scarcely exceeds 5%,

there

economy,
freer exchange of

a

of

duty ratio for
find that it now

to have

world

of

comprehensive

Healthy world trade is impor¬
every

free

If

into

both to imports and to
exports.
tant

half

more

remember

must

we

enter

of

average

over

weighted

and

Through

an

the General Agreement on Tariffs

rate reductions.

factors

well

some

imports are subject
specific duties, our re¬
straint on this point has been of
only

World

of

end

since

about

ports, which exceeded

story of reductions in the

tariff

risen

has accepted very sub¬
stantial cuts in the effective levels

rate

age

Just

program.

have

dutiable U. S.

Furthermore,

of the

moval

very

concessions.

U.

expansion of
by the gradual re¬
unjustifiable
barriers

trade

is

by
75%.

Moreover,

a

Average prices of U. S. imports
today are, of course, several times
as
high as they were before in¬
ception of the trade agreements

the

other words, our traiffs have been

that

appreciate, the relative level
of a given specific
duty, unlike
that of a given. ad valorem
duty,

at

lowered

all

increases in import prices.

The

world

the

investment

been.

is the purpose of the Administra¬
tion to assist in the

trade

increase in

price

Before
doing so, however, I
want to point out how
widespread
the reduction of
duty rates has

tween that

proposal further to encourage by
an

of

moment.

a

is the ex¬
pansion of international trade. It

tax incentives

such

in

effects

which

Expansion of International Trade,
Keystone of Our Policy

tributions to the lowering of trade
barriers.

to encourage

the

bound

programs create.

capital-exporting country are
doing all that is within our power
vate

or

30%

II, and to only about 12%
today. Over the whole span, in

than

the U. S.

the

for

a

tern

the level of import
prices for goods subject to fixed
amounts of duty per unit of
quan¬
tity. I shall comment further on

than
War

with the world-wide in¬
flation of prices during and after
World War II. As I am sure
you

try at lower tariff rates

the

in

progress

largely dependent upon the efforts
of capital-importing countries, we
as

by shifts in the import pat¬

specific duties upward

our

line

Roughly nine-tenths of our duti¬
able imports now enter the coun¬

broader

from abroad.

than

have refrained from ad¬

we

justing
in

economic

have

national aid.

tries

have

as

been brought about
by changes in
particular rates of duty, rather

as

1945, they
By fore¬
going adjustment of specific duties
to these sharp increases in
prices,

of view and

point
base

to

of

job is virtually done.

be

point of view
upon

for

proper

economic strength

our

reconstruction

But that

our

right and

was

give

average

into

changes

unaffected

temptation

who believe

of those

one

am

weighted

take

account not only
such, but also the
fact that unlike many other coun¬
rate

fact that the United States cannot
alone
create
the conditions
for

opti¬

mism.

the

their

agriculture, their
educational facilities, their health
services, and to some extent their
industry.

must

just

made reflect only such
changes in

how

tion of their citizens.

are

tiated in prewar trade
agreements.
The comparisons
I have

33

on

The Commercial and Financial Chronicle

D

(2218)

34

the great majority of these

over,

33

Continued jrom page

applications have failed to estab¬
thorough

Foreign Economic Policyorganizational

Agreement

companying benefits for all.

changed

to
of

istration

problems.

Organiza¬

The

.

.

.

Trade

for

tion

trade

mutual

of

discussion

the

and

rules

trade

the

admin¬

the

for

mechanism

Cooperation

would

provide a mechanism
through which arrangements for
trade negotiations could be facili¬
It

tated.

matters

trade

serve

as

a

trade

adjust¬

involving the
The
Organization
no
supra-national
Such action would

problems

rules.

would

have

powers.

also

also

the amicable

and

of

ment

...

the

serve

enlightened

example, is

and

siderations

must

effectively for
the removal of discriminatory re¬
strictions against our exports. We
could

more

help

rencies.

We could further the

ex¬

pansion of markets abroad for the
products of
and

mines,

our

farms,

our

factories."

our

Trend Toward Liberalization of

indicate

liberalization of U. S. tariff policy
over

considerable

a

of

period

of assessing the
progress we have made is by tak¬
ing a look at the development of
way

international commercial pol¬

our

icy from

somewhat broader

a

per¬

spective than is customary.
In

ell

order

to

do

to

think

this, I ask

back

you

high

sure

of

none

word

At

our
19th and early
political history in
school classes.
I am

century

your

you

least

I

or

existence

there.
heard

we

It

of

years

one

was

national

our

big tariff de¬

bate.
We

learned

that

of

one

the

main differences between the two

major parties—and they went by
different
of

history—was that

our

a

low

a

high

as

tariff

party

tariff

1934,

stages

one

and the

was

other

party. As recently
first Trade Agree¬

the

ments Act

party

at different

names

passed by a largely
Even when an un¬

was

vote.

precedented

unity

was

degree of bipartisan
achieved and the Euro¬

Recovery Program

pean

plemented
it

by

agreements

clear

.

area

vote,

that

questions

cluded from the

im¬

was

bipartisan

a

made

was

trade

-were

of

ex¬

bipartisan,

agreement.

were

ters

of

considered

to

ques¬

be

mat¬

domestic

policy
rather
foreign policy; they were not
generally thought to be a proper
subject for international agree¬
than

ment; they
tisan

debate

great parties.

had

no

In other words,

generally accepted

national

commercial

Under

those

course,.

could

matters for par¬
between
the
two

were

be

not

inter¬

policy.

stable.

It

of

policy

was

sub¬

ject to change in direction as the
political winds changed their di¬
rection.
I

have

think

that

come

elements

of

to

most

Americans

recognize

that

all

foreign policy
bipartisan and they
our

should

be

must, be

relatively stable arid con¬
Only if these conditions

tinuous.
are

rely

met
on

can

them.

our

friends

abroad

Only then

base have been laid for

and

should

revert

of

days.

pre

division

agreement

will

a

a

steadily

healthily expanding

volume




of * additional

part

our

on

of

drawal

any

countries re¬
compensation in

adequate

sions

these

of

affected

form

In the

this

resulted

with¬
their

on

of Swiss watches

case

concessions

conces¬

the

or

concessions

part.

in

compensatory
items

such

on

as

chemicals, precision instruments,
textile specialties and motion pic¬
ture

Of

cameras.

watch

the

volved

these, all except
bicycle cases in¬

and

insignificant

amounts

of

those two items
are
relatively quite minor com¬
ponents of our import trade. All
together, the six cases covered
less than 1% of our total imports.
imports, and

of

the

of the

authority

Act

and

recently renewed
It is noteworthy,

was

extended.

however, that the division was not

lines; there were
more differences of opinion with¬
in each of the parties than there
was
between the parties.
along

partisan

The development of a truly na¬
tional bi-partisan policy
last few years

tial

represents substan¬

development
friends abroad

This

progress.

should

give our
confidence
in

real
of

trade

our

the

gram,
tariff

even

Responsibilities
in

to
is

United

time

alterations

in

agricultural

ments,

to

use

major

industrial

or

of

our

provision for
and readjust-

could scarcely

we

extensive

under¬
im¬

and

portant commitments. Other
countries, of

course,

also insist

on

these

reduce
They can¬

while

putting

faith

great

,

in

the

other

reduction
trade
that

toward

tariff

barriers,

and

feel

is why

This

in

size

our

the

other

strongly

so

supplemental efforts

quired.
the

countries
of

J

are

re¬

empha¬

we

programming

own

importance of facilitating the

activities.

tion

These
tute

the

for

do

substi¬

not

efforts

of

business.

They merely

are designed to pro¬
vide businessmen with tools which

they

for their

need

own

promo¬

efforts.

tional

,

.

When

....

to

came

Washington,

advised by many of your

were

companies that the business
functions

of

the

allowed

serv¬

Department

to

deteriorate.

reason,
the Secretary,
vigorously
reducing
the
budget for the Department
of

while

Commerce

efforts

as

devoted

whole, has made

a

increase

to
to

the

resources

business

our

service

activities.
As
to

result,

a

have been able

we

expand somewhat the services

offered by our Bureau
Commerce
Defense

and

of Foreign

Business

our

Services

and

Administration

traders

types of service which they need

imports

to

increase

result of tariff

a

as

cessions to

extent which

an

serious

threatens

or

con¬

causes

injury

to

a

industry. "

domestic

half,

if

the

of this escape clause
in two widely publicized cases—
watches and bicycles—has given
rise
to
expressions 1 of
alarm
our use

of

among some

our

friends abroad

who have misconstrued
cisions

as-.

basic

a

which

these de¬

of

change

tional

general rule.
tate

exceptions to the

We need
them

remind

to

not hesi¬
that
the

escape

clause is in the nature of

safety

valve,

and

that

like

a

any

well-designed safety valve, it has
been characterized by
very
in¬
frequent use. Though there are
over
three
thousand
commodity
classifications,
than
for

$4

which

available
for

its

about
year

involving

more

billion worth of imports,
the

if

use

60

escape

clause

is

needed,
have

during

applications
numbered only
the

entire

13-

period of its existence. More¬

We

supplementing

to

by

held

abroad.

the

supplement

We

of

the

promo¬

year

themselves

to

As

jor

limitation

we

the

upon

services

investors

results

from

curtailment

of

the

activities

the

Foreign

the

of

United

Department

pendent

who

and
a

for

consult

us

or

di¬

busi¬
who

very

have

we

to

came

been

Wash¬

working

closely with the Department

of State

this

we

in

an

situation.

that

say

State

has

our

every

attempt to remedy
I

the

been

think

very

problem

it

is

Department

and

fair

of

sympathetic
is

making

effort to meet it.

During the last year at the re¬
quest of the President, we in the

a

program

government
your

continue

sympathetic

ad¬

We do not have all the answers.
can

the

on

agriculture work together in

free

only

continue

problems

to

with

work
if

success

the

Sargent Administrator

to produce goods

economy

and services in great

quantity for

In N. Y. Office of SEC

good.

common

Our

James C. Sargent entered on
participation in trade fairs
has included a uniquely American duty on Nov. 14 as Regional Ad¬
Alone

contribution.

participating
sent

these fairs

to

among

countries,

we

missions

of
the
New
York
all ministrator
have office of the Securities and Ex¬

change C

com¬

o m-

private

mission.

This

businessmen who work along with

office

com¬

prises

the

of

posed

experienced

assist

the

business

visitors

to

States of New

of de¬

York and New

veloping two-way trade with the

Jersey.

United States.

induction

ment

We in the Depart¬

The
cer¬

emonies

were

the enthusiastic cooperation which

presided

over

this

by SEC Chair¬

extremely

are

has

program

American

grateful

received

business

of

many

the

firms

for

from

including

These
done

much

est of

with

business¬

sincere

along

inter¬

their

replete

this

with

trade

business

Assistant

evidence

of the American

as

and

ance

General

City.

New
Jacob

barriers

and

expansion

In his

work

Trubin, First

York
K.

rep¬

Attorney

Javits.

For

a

was an

General in the

of

closely

with

work

violations.

gent practiced

SEC
will

as

he

the Attorney
investigation
pertaining

Office: in

enforcement

securities

to

position

new

Administrator

General's
and

international trade.

have

John

Attorney General,

Regional

to

go
forward in the direction of
gradual reduction of international

trade

New

Election Fraud Bureau, New York

me

is

the

Also in attend¬

period in 1948 Mr. Sargent

business

Administration

to

Di¬

Sargent

Mr.

him

Assistant Attorney

let

Upham 3rd;

Executive

staff.

Mr.

was

resenting

mar¬

empha¬
size again that the policy* of the
Eisenhower

introduce

Assistant

point of view.
conclusion,

Sargent

,

welcome

York office

ket and the American economy as
well

C.

james

the

to

to

rector,

understand¬

ing abroad of the American

H.

Adams and S. Bourne

joint

better

i th"

w

Clarence

business-govern¬
undertaking is one of the

mote

r m-

Commissioner

community in

The files of the Depart¬

are

that

the

promote

to

us.

ment

of

business

our

helping

convince

to

Sin-,

A

strong, who ;,
came up from.:
Washington,...

marketing missions have

abroad

men

J.

man

clair

represented

here.

law in

Mr.

Sar¬

New York

real

strides in from 1941 to 1951
(except for four
the foreign years service in the U. S. Army
economic program of this Admin¬ Air
Force); served as law assist¬
istration is not yet complete. Im¬ ant to the
Appellate Division, First
portant
measures
recommended Department, Supreme Court, State
by the President are still before of New York, from July 1951 to
the Congress.
They are all pro¬ August 1954; and thereafter - re¬
We

that

made

direction,

but

posals carefully designed to meet turned to private law practice in
the objectives which you as for¬ New York.
eign traders and investors share
with the Administration.

It is not

With McCormick & Co.

discuss them at
length here.
We should, how¬
ever, bear them in mind as "un¬
to

purpose

my

finished business."
The

most

of

United

important

business

for

the

membership

in

Cooperation.

this

Our

Organization
we

con¬

tinue to obtain the benefits of the

General

Agreements

Trade

and

continued

and

in

reduction

the

for

efforts

-;v

bar¬

rill

The customs simplifications

(2)

valuation.

(3)

Pierce,

C.

Mer¬

&

Fenner

Beane, 1125 Van Ness Avenue.

With Merrill Lynch

The
of

SAN

Staff

with
ner

for

proposal

14

percentage

(4)

The

free

not

of

duty

returning
I

remarks,
been

details

encourage

able

of

our

economic

have

to

go

of

into

efforts

growth

to

and

stability throughout the world by
reliance

on

centives

of

now

connected

311 C Street.

Two With Revel Miller
(Special to The Financial Chronicle)

to increase

LOS

ANGELES, Calif.

R. Call and

these

is

Lynch, Pierce, Fen¬

& Beane,

reduc¬
points in

tourists.

the

Merrill

a

applicable to foreign

bill

exemptions

course

DIEGO, Calif.—Ronald H.

Hammershoy

investment.

all

Lynch,

»

Donald

(Special to The Financial Chronicle)

proposals now before the Con¬
gress, especially those relating to

In

—

White has joined the staff of

riers.

tion

Calif.

FRESNO,

joint

the pro¬

of trade

Adds

(Special to The Financial ChronicleX,

Tariffs

on

symbolize our

interest

international

gressive

to

joined

Merrill Lynch

join the Organiza¬

Trade

has

are:

that

■

tion

Calif.—Shirleu

BEACH,

the staff ofthese: McCormick & Co., Security Bldg.

of

proposal

States

(Special to The Financial Chronicle)

LONG

J.,Lynn

unfinished

The

the tax rate

since

ington,

to

and

American

the

busi¬

have

stationed

abroad.

Ever

to

the

necessarily de¬

information

nessmen

in

We

the Foreign Service

upon

for

Service

Commerce
are

assistance to

rect

go

of
we

the

commercial

States.

representatives

abroad and

both

ma¬

provide for foreign traders

can

and

know, the

is

true story of how American
ownership,
management,
labor

is essential to insure that

of you

most

It

only be carried out if

the

(1)

last

understanding and

our
thinking is constantly re¬
developing
central freshed
by( guidance obtained
exhibits, which tell the thousands from informed and
experienced
of
people attending trade fairs businessmen like vourselvaa,

items

the

program

by

nessmen

publications
that have

over

can

complex and
which

are

a

your

receive

We

however

efforts

is

vice.

greater participation
American business in trade

fairs

cope

It

in

we

activities.

is designed

program

to

support.

which

to encourage

hope that the

our

commended

with

own

programs

effected

foreign

you.

no

two

efforts.

have

we

from

investors

and

and. other

of

ences

furnish

improvements in

United States policy.
It seems to me, however,

that
might reasonably ask them
to
draw exaggerated
infer¬

together

supplement their

been

year" and- a

past

of

promotion

Basically this

In

•

Secretary Weeks and his

first

team

.

"escape

invoked

trade

our

your

of life and the American
and

seeks

requires

been made in recent years to pro¬

activities

includes
be

way

economy

ment

the trade agreement leg¬
to

of contributing to a bet¬
understanding of the Ameri¬

can

most successful efforts which have

reasons,

clause"

ter

efforts of businessmen to conduct

reservations.

an

it

dual

trade—our so-called trade promo¬

similar

islation

For

ex¬

can

trade.

to

which

Administration's program to work

is

the

the

serve

the fairs in their problems

This is why we
Department of Commerce,

the

that

It

to

to

create trade.

not

in

been

of

varied.

designed

Trade

perform in

They

trade.

ice

time.

been

Private

function

can

barriers

For

structure

such

the

had

policy

the

reconsideration

panding

to

Without

economy.

governments

bound

to effect

powers

limited

the

reconsider

Government

States

tariff

to

the

not

pro¬

of

Foreign

Again, I should like to empha¬
size

we

need

from

take

stability

agreements

concessions

arise

its

the

intentions.

our

In

the

over

Our program is a complex one
because the problems with which

an

government marketing specialists
The

with

;
in

emphasis led to
opinion in the Con¬

when

gress

tariff

the

to

trade

-

\

,

Differences

not

conditions,

commercial

our

we

the

general agreement,

there are differences of
view as to emphasis.
Some be¬
lieve we have
gone
too far in
cutting tariffs—others believe we
have not gone far enough. There
is no responsible suggestion that

During

Until quife recently, tariff

tions

this

certainly

,

adversely
ceive

each

in

and

Enterprise

Within

sometimes

that the first hun¬

us

so

But

tariffs.

appeared to
dred

policy

didn't.

about

heard the

ever

commercial

much

and

agriculture

industry,

of course,

you

what

to

learned about
20th

ican

ments

Another

is pos¬

as

creating impossible

President under the Trade Agree¬

'

years.

low

as

the

cases

labor.

consistent trend toward

a

be

can

advantage.

be

investi¬

the fact remains
escape clause has ulti¬

period,

problems of adjustment for Amer¬

levels

and currently pro¬
posed actions of our government
past

rates

other countries
I am even
optimistic enough to believe that
the general
view is that tariff
mutual

we

U. S. Tariffs

These

with the
appropri¬

with

negotiated

to

conditions

establish

favorable to convertibility of cur¬

tariff

standards

should

work

weighed

be

disposition to quarrel
proposition that under
ate

con^-

There is little

against each other.

without

States.

domestic

ternational

rates

the

generally

are

we

field in which in¬

a

sible

could

_

think

agreed that the tariff, to take one

As

of

United

self-

that in the last
secured a rea¬
sonable degree of national unity
on
the subject of our commercial
I

by

mately been invoked in only six

would suggest

policy.

merely
the

of

uncertainties

that

trade may

affected

adversely

the

ac¬

few years we have

member of this Organization we

interest
a

would

for the discussion of

forum

I

be

of Commerce have
international trade
fair program.
This program has

developed

purpose

gation

with

trade

General

ous

the

government

While it is true that

of

provisions of the
should
be
provide a continu¬

under

of

process

review.

Promise and Performance
international

merit

their

lish

Department

Thursday, November 24,1955

...

the capacities and in¬

private enterprise.

Jr.

Co.,

are

now

650

with Revel

South

Jarvis

Mr.

Miller &

Spring

members of the Los

Exchange.

—

Albert W. McCready,

Street,

Angeles Stock

McCready

was

previously with Walter C. Gorey

Number 5484

182

Volume

Continued

jrom

.

.

The Commercial and Financial Chronicle

.

Reserve

23

page

witn

which will engage

foreign
these

capital financing. All of
actions
and
organizations

symbolic of the interest in and
to encourage investments

are

efforts

in

that will work
to the advantage of enlarging and
abroad

ways

stabilizing world

of

the

outpost duties of the for¬

offices
of . United
States
banking
institutions
and
their
international usefulness, on to the
constructive bearing that United
States investment activities abroad

of

World

Trade

enlarging and stabilizing
trade, it is interesting to

the

trace

annual

an

in volume

de¬

recent

exports

World

velopments.
at

of

course

rate

of

and 5%

in

in

Later

turned

the

to

in
the volume of foreign trade since
the

of World

end

recovery

War II

economic

consequences

7%

countries

of

about

value dur¬

rise became
By the first

1954, the
for a time.

steeper

then

rose

ing 1953 and the first half of 1954.

half

the

as

financial activities. The discussion

to

world

in

sketched

background to these two kinds of

Developments
As

economies

foreign countries. The magni¬
of
United
States
foreign
were

of

The

then

were

explored.
The time has

the

now

to take

come

relevance of domestic

the

United

States.

is- not

only

fi¬

the foreign trade of the

to

nance

The

the

United

States

world's

largest

self-contained
market, but also
that has been made from the largest- market in the world
the ravages of World War II and for foreign exports. The latter is
of widespread prosperity in many' of, particular significance to for¬
recovery

parts of the world.
•
\ Even
so, prosperous
have

been

not

;V

■

conditions
without

attained

heavy pressure on the
payments positions of a
foreign countries. Such

putting

countries

eign

-

.

well

United

derived

have

from

levels of domestic employ¬
and consumption, which to¬

high
ment

internal

stability is heavily dependent

balance of

difficulties

whose

remember

to

States":

products of

that

although

imports

some

of

the

foreign countries

not loom large in the over¬
all total of our business and in¬

may

gether have had the effect
absorbing domestic resources

of dustrial activity, a reduction of
at such imports -often has harmful
the expense of export activities effects on the economies of the
necessary to trade-balancing re¬
exporting countries. In turn, diffi¬
quirements. In result, not only has culties started-In this way, if not
export
income fallen
short
in countered, can spread out effects
these

of the amounts neces¬

cases

to

sary

imports,

help balance the cost of
but the high rate of
activity, in subjecting

domestic

rates and prices to upward
pressures, has threatened to place
export undertakings at a com¬
wage

world

in

disadvantage

petitive

Developments, of this
have been characteristic as

markets.

kind

that

that

eventually become mat¬
ters of serious concern at home.
can

The

vital

importance to world

prosperity of & stable and active
economy in the United States is

For example,

widely recognized.
it

calculated

been

has

the

that

modest downward readjustment

in

conditions

States business

United

is

carried

medium

ply their
As has al¬

can

through

on

the

of

of

the

credit, any regulation
supply of credit available

to

the

nation's

nity

has

business

decisive

a

commu¬

influence

on

internal economic stability.

our

the present time, the picture that
has been drawn of foreign econ¬
omic affairs and your own obser¬

vations,

both

domestic

economic

in
1953-1954 -caused
a
drop of
the
United
Kingdom,
around 7% in the aggregate value
Australia,
and
other
countries
of our imports.- The interaction of
that might be mentioned. Unlike
economic
impulses between the
the United
States, all of these
United States. and foreign coun¬
countries are critically dependent
tries reveals vividly the impor¬
on
their
import-requirements;
tance of foreign trade in support¬
and
that
being
the
case,
are
ing world economic activity and
highly sensitive to conditions that
the particular importance of the
are due partially to their internal
United
States
to
this
whole
prosperity, but which have- unscheme of things.
stabilized their general economies.

foreign
and
affairs, must
reconcile in your minds a policy
that has as its objective the con¬
of

This kind, of situation has been

eign exchange value of some cur¬
rencies. However, the warning of

has
brought
remedial
actions
which, in the
case of an
important trading na¬
tion like the United Kingdom, have
these

experiences

principally

in

been

the

of

area

monetary
policy.
This accounts
the setting of higher discount

for

rising interest rates, and
regulatory
limitations
to
the
availability of credit in order to
rates,

internal

damp down pressures on
economic activities.

through

transacted

is

that

ness

considered
greater use of

the medium of credit is

along

with

credit

that

the

accompanies

prosper¬

ity, the latent power of monetary

policy to cut down the use of credit
through its cost and availability
becomes

factors

clearly apparent.

policy Js in no wise a
cure-all to economic instability of

Monetary
the

discussed,

kind

it

but

is

a

useful instrument in the
hands
of governmental authori¬
ties, as is borne witness in the
highly

of

current

course

United

Kingdom.

aware, a

in

you

the

by

actions

are

United

to
of monetary
on the fiscal

front.
It

It
to

in bounds that will sustain a
able

financial

discussion
relevance

been

to
of

the

aim

point
finance

trade, beginning

of

out
to

this

the

foreign

with the recital




affairs

United

States-has

trade

relationships

on

of

word

its

foreign

which,

in

involves delving into the

essence,

by which our domestic fi¬

means

nancial

arrangements
the

ute to

can

contrib¬

nation's economic sta¬

high

that

whom

to

as

the

last

how

the

have
and

granted,

and

It

is

quite evident that, under
bank deposits con¬
element
in
our
supply of money; and
through the use of bank checks
provide our most familiar medium
of exchange. • Inasmuch
as
bank
system,

our

deposits are the product of bank
credit-creating operations, it fol¬
that

lows

national

our:

money

largely
owes
its
paternity to activities within the
banking systenf. Experience has

supply

if

that

inflation

or

deflation is to be
of the money'

avoided, the size
supply must be held

it

the pace

:'relationship with
of economic activity.

It is here that the operations of
our

domestic

come

financial

our

relationships

States" for

United
in

banking institutions

into contact with the

any

foreign
of

the

distortion

domestic bank credit-mak¬

ing activities that leads to internal
dencies

is

cussions

in

or' deflationary

bound
the

to

have

sphere

of

ten¬

reper¬

inter¬

national economic affairs.
It is

here, too, that the Federal

With First California
(Special to The Financial Chronicle)

the

as

Committee for

Nominating

1956

Amyas

were:

Co.,
New York; Benjamin H. Griswold,
III, Alex. Brown & Sons, Balti¬
more;
Jerome
W.
Nammack,
Sprague & Nammack. New York;
Kidder,

Ames,

William

law

&

Co.,

&

is

Co., Los

Incorporated, 221

Second Street.

West

Joins Harry
(Special to The Financial

Pon

!

Chronicle)

AZUSA, Calif.—Robert J. Hoy
is

now

Azusa

Angeles;

connected with First Cali¬

now

fornia Company

Phelps

York;

Witter &

Calif.—John G. Baker

CHICO,

Laid-

Deventer,

New

Dean

Witter,

Peabody

Van

F.

What Really

with Harry Pon, 711

North

Avenue.

Happened

in the Stock Market

is cus¬

of

both

terms

and

value

dollar

physical quantity. This twin fash¬
ion for reporting our international
movements of goods is a perfect
example of the affinity that exists
between
finance
and
foreign
The

trade.

two

insep¬

linked

are

Monday, September 26?
One of the most dramatic, unusual markets on

record!

arably, for all transactions in our

have

foreign
trade
side.
Starting

financial

a

production
and leading on through transpor¬
tation to distribution — all of the
multitude of processes that enter
into the
marketing of the vast
array of goods that flow through
at

with

channels of

the

foreign trade

our

point grasp the helping
of finance. And thus it is

some

hand

that "Finance and
has been

Foreign Trade"

When

trading

prices

Lee, partner of W. E.

J.

James

Co., New York, was
elected president of the Associa¬
tion of Stock Exchange Firms for
Hutton

&

1955

Then, over the week end, news
of the President's heart attack
flashed around

of

to

has

also

served

on

the

Board

of

the

n

react? How

the

sellers? The

prices actually
Magazine,

President of

Exchange,

the

Board

ciation

of

succeeds

How much did
James

pay

Lee

J.

common

•

.

stocks

during the past nine months

of 1955? Four
the

J.

John

new

records

were

Asso¬

National

Securities

F.

creased 900%
mand

Dealers.

He

the

&

Co.,

held

&

earned
turned

into

$8,000

over

elected

earlier

&

Weeks,
McCarthy,

Pierce,

yearly

$11,000 investment

an

than half

more

a

million.

Magazine is

a

featuring down-to-earth articles

by company presidents, editors
and financial commentators. To
your

knowledge of

dollar bill and receive

a

12

issues. THE EX¬

Magazine is not sold

newsstands

or

by the

copy.

for
THE EXCHANGE Magazine,

in

11 Wall Street,

Dept.

Fenner

&

E-4

New York 5, New York

the

order). Please send

j

EXCHANGE Magazine.

|

Enclosed is $1 (check, cash, money

W.

Saga: How a

engineer who never

pocket-size monthly put out for
new investors and experts alike,

on

Baker, Jr., Reynolds &
Co., New York; John D. Burge,
Ball, Burge & Kraus, Cleveland;
David S. Foster, Pershing & Co.,
New York; James A. Hetherington, II, Goodbody & Co., New
York;
Henry
Hornblower,
II,

Lynch,

Investment

An

railroad

CHANGE

John D.

Michael

answer.

the next

day are;

Hornblower

S.

treasurer.

Governors

members

growth? Richard

Reynolds Metals Co., gives you
the

low with

varying terms to the Board of
thirty-five at the annual meeting
of

products behind this

new

fabulous

stocks, send in the coupon be¬

Watts, Jr., Baker, Watts & Co.,
Baltimore,
were
elected
vice
presidents and Robert J. Lewis,
New

and the de¬

What is the investor's stake in

Co., San Francisco, and Sewell S.

Estabrook

—

today still exceeds supply.

improve

Sullivan, senior

Hellman, J. Barth

total

of aluminum has in¬

supply

of the most

one

partner of Bosworth, Sullivan &
Co., Denver, who has been presi¬
dent since November, 1954.
Marco

Industry: In the

challenges in its history.

Also in the October issue.

on

of

The Aluminum

THE EXCHANGE

1951

was

article all

graphic story of how the

From
to

he

an

the crisis met?

was

How much did

severe

since

then.
1949

were

Exchange met

vestment

ciation

re¬

buyers? How did the brokers

tells the

the

1952

I

Who

definitely

—

Reynolds, Jr., President of the

the New York Stock

Mr.

Board in

ac¬

history.

G. Keith Funston,

elect-

was

cent

THE EXCHANGE

at

annual

meeting.

and

the world.. On

deluged by the largest

set

investors should read.

past ten years the nation's

decline? In this month's issue of

by

Board

d

record high.

56

-

fiscal year

e

were at a

cumulation of sell orders in

Elects Officers

Lee

the New York Stock

Monday morning, the market

Exch. Firm Ass'n

its

on

closing bell ended

Exchange,Friday, September 23,

was

the

the

fitting subject for dis¬

a

cussion.

consistent

in

members of
Angeles

Los

and

tomary to report the statistics of
United
States
foreign trade in

very:*-

shown

also

York

New

Stock Exchanges.

national prosper¬

our

well know,

you

the

Minneapolis;
James
H.
Scott, Scott & Stringfellow, Rich¬

ity.
As

South Beverly Drive,

mond.

rely to follow the kinds of bank¬
ing policies most conducive to

maintaining

E.

Staples, Henry L. Richman
Shirley R. Chilton are now
with Daniel Reeves &
Co., 398
and

wood,

must

whom we

on

Charles

were:

Calif.—Rob¬

ert W.

Ames, Kean, Taylor & Co., New
York; Charles P. Cooley, Cooley
& Company, Hartford; Harry C.
Piper, Jr., Piper, Jaffray & Hop-

supply of credit will be

Bankers Asso¬

bility and growth.

Re-elected

(Special to The Financial Chronicle)

BEVERLY HILLS,

Bacon,

banks

individual
States

available

the

the

troit; Jay N. - Whipple,
Whipple & Co., Chicago.

Three With Daniel Reeves

However, it
of the

factor.

growth

the

is

United

Governors

therefore, now necessary
bearing that the

is,

inflationary
has

Our

scrutinize the

internal

the

intended

Kingdom which is
strengthen the hand

policy

in

supplemental budget has

submitted

been

events

As

and

Foreign Trade

stitute the most important

the vast amount of busi¬

When

Policies

Domestic

in the for¬

in weakness

York; John J. Phelan, Nash
Co., New York; William C.
Roney, Wm. C. Roney & Co., De¬
&

tainment of credit activities with-;

regards

reflected

New

Elected

As to Federal Reserve policy at

on

their export trade with the United
States.
In, that connection it is

number of

banks

our

level economy, geared to a reason¬

up

before, and 9% greater
in value. Export increases of this
size are further indications of the

some

growing prosperity.
financial ramifica¬

perverse

1955, world exports were
about 10% greater in volume than
year

the

and

to

tions of these situations

responsibility of set¬

credit-creating trade.
ready been pointed out, in view
of the large part of all business

tude

trade.

trade
Recent

domestic

the

on

the

commercial

eign

have

it

ting the limits within which

Foreign Trade

Corporation,
Ltd.,
in the field of

Development

System comes 'onto the
Congress has placed

for

etage,

Finance and

35

(2219)

Boston;
Merrill

Beane,

me

the next 12 issues of THE

I
Name-

.

Address.

Tht am.tini;

al

j

£,-

State.

i

36

The Commercial and Financial Chronicle

(2220)

—
.

O

his

Continued from first page

finance to hinder or

no

son,

and

came

never

inclined to worry about it.

Continued

There

was a
year or two of the Fair Deal regime
budget was balanced—njiore or less by accident,
it appeared, but balanced in any event. But no one in
authority thought enough of it to make any real effort to
keep it in balance, and indeed the matter was often de¬

when the

things were much more
fig that colossal waste
was
running rampant in defense. It seemed to be supposed
that the state of our defenses was to be measured by the
amount of money spent. Of course, money spent to keep
the farmer voting right was well spent. That these funds
—or some of them—had to
be, or actually were, obtained
by what amounted to coining Treasury deficits into
money seemed to perturb no one in places of influence.
The Eisenhower Administration started out with high
hopes and broad statements about balancing the budget.
It found the going rough partly because so many had
for so long been feeding from the public trough. It winced
relented

and

seemed to

and

It

certainly had
such, though of

refrained

than

more

one

occasion.

help from the Democratic party as
course such men as Senator Byrd were
to be counted on. It has not yet balanced the budget
although it is said to have high hopes of doing so this
year—as a result far more of extraordinarily active busi¬
ness and hence of
high tax collections than prudent man¬
agement of expenditures. It has, however, continued to
talk of getting owtlays and revenues into balance and has
seemed to believe it important.
This

no

enough, apparently, to stimulate in Demo¬
cratic ranks a good deal of derision of the
general idea
of getting the budget in order and
keeping it there. We
do not know, frankly, what the Democratic
party would
do

was

it to be

were

rather that of
throwback

to

a

returned to office. Its condemnation, or
number of the leaders of the party, is a

the

New

Deal

days and the New Deal
political magic. It is not easy to believe that Mr. Steven¬
son, for example, would be quite as indifferent to sound
public finance as some of the talk now going the rounds
would suggest. Still it is fact that a Democratic President
successfully going before the people with talk of the sort
now

common

without

about

budget matters could do wild things
violating any sort of pledge.
Lost Its Terror

politician and for a good many
length and breadth of the land for
others. One is that it has

two

reasons

among

become accepted as sound
and wholesome tactics to raise needed funds
by placing
now

Treasury deficits in the banks
posits specially created for the

of the country against de¬
purpose,

and to do

so

with

the aid of the Federal Reserve

System. There was a time
when such procedure was frowned
upon by informed
citizens. It is now
relatively easy to obtain funds without
appearing to lay burdens upon any one. It is an easy
going policy, the penalty for which may be very con¬
siderably deferred. It tends to take some of the sting out
of Treasury deficits.
Another

factor

in

this

situation

is

the

apparently
policy of collecting taxes from the
comparatively few wealthy individuals and corporations
—soaking the rich for the benefit of the many, as it were.
Thus large and indefensible
outlays are passed over in
the popular belief that the taxes to
cover them come from
fixed and permanent

the

"millionaires,"

voters. Indirect

nized

or

or

not

from

the

rank

and

file

of

the

hidden taxes are, of course, not
recog¬

thought of. Thus

mounting debt fail

even

disturb

to

continuing deficits and

the

rank

and

file

presumably ultimately to pay off the
reasoned, be taken from the rich.

This, of

course,

is

If the American voter is




immensely dangerous situation.
prepared to look effectively after

that

of

marked

growth

of

does

not

mean

B

decisions
on

and

policies should

solid,

constructive, and
judgment. We should

intelligent

employment, and imports.
This
process would tend
to cumulate
and gather force as world trade

prospects are excellent. The resiliency and vigor demonstrated

evitable. We in the financial cornmunity have an important respon-

declined.

Shifts and flights of in-

enterprise in springing back from

vestment

capital would add to the

disturbance.

Various

would

begin

to

balance

of

ous

culties

and

as

nations

experience

seri-

diffi-

payments
defensive

a

meas-

by

of

system

our

free

business recession

the

business

of

subscribe

that

sibility

to

resist

In this respect,

1953-54

tutions
counts,

they

namic,

enterprise

through

sound

to

free

society—
a significant deWe have learned

assumption

inflation

is

in-

inflationary

pressures.

heartening
signs
that
the
business cycle—although certainly
not a thing of the past in a dy-

are

the

to

continued

trust insti-

our

lend

can

helping hand,

a

In the administration

of trust

ac-

demonstrate

can

and

conservative

might adopt policies of competitive exchange devaluation of

is

their

much from the past; and we shall

actions that they have confidence
in the ability of our people to
deal with the ugly and persistent

apply

problem of inflation. Such actions

currencies

import tariffs.

increases

and

in

The

broad, multilateral
trade
mechanism
might
ultimately collapse and be replaced by a limited volume of
two-way trade.
„

The

Experience

Actually,
1953-54

was

of

drive

for

living.

1953-54

experience

the
no

than

more

breathing period in

mild

a

higher standard of
if a real depression

a

Yet,

occurred, our efforts in the
postwar
period
to
restore
a
healthy pattern of world trade
investment in the interest of

and

all

free

in

nations

vain, and

the

would

foundations

would

have

The

for

been

been

important—

more

—

have

lasting

peace

jeopardized.

maintenance

prosperity—characterized
stable

economic

growth

gathering of the fruits of
ventive

by

and

a

in-

our

and

productive genius—
provide the greatest contribu-

can

tion

to

strengthening of the
of
peace.
There is

a

foundations
less

much
for

trade
.

emnloved

it

is

interference

interference
abroad.

of

the

from
from

our

attitudes

on

are
are

regarded
regaraea

bv
oy

countries

of

fully

blame

to

comnetition
competition

Since

measure

When

not

are

easv

barriers
carriers

other

nros-

prevail.

factories

and

trade
uaae

when

as

significant

a

American

sincerity
sincerity

regarding trade policy, prosperous
conditions

this

are

distinct

a

asset

Zv

can

.

tends

to

income

condi-

Amen-

encourage

for certain

luxury items that

so

many foreign countries
duce with such skill and

terity.

our

pro-

dex-

Increased expenditure for

in

you

in

tween

ports of

country

our

indeed, of the world. The ships
pass' through this port chaneven
though many are engaged
in
coastwise
operations

jjhat

nej.

tell

the

story

0f

of

trade

the

to

constant

and

from

our

country to the ports of the world.
It requires little imagination to
observe that

significant portion

a

of the growth and
prosperity you
have experienced is directly re-

lated

the expansion of trade
possible
by
the
general
prosperity of the nation.
let

it

be

under-

of/-,/-..-!

Keen

±

this

f„ HoustZ
.ouflonperity

is

1"e
"1
that

one

attention

of

for

the

not

fripndc

mv

The

a

has

message

earmarked

ouestinn

of

deserves

the

Question of
-P™8"

finnnmni

Fm+er

a"enll0n °* me tmancial frateinlty across the

country to the far

of

corners

Maine,

44

at

other

A11

Washington,'

tt>i—rA

Florida,

California and

with stops
between v

in

states

,

,

.

neighbors

the

economy

prosperity,
which the well-being of our
people, our friends abroad,

for

so

our

much

well-being

abroad.

It

is

of

areas

our

our

re-

progress

up new

before

never

anticipated. The ingenuity of our
science and technology, the energy
and sk*d
the American people,
and
stimulating atmosphere of
our system of free business enterPrise promise accomplishments in
t^e future that may well dwarf
even
the remarkable advancemen?s of the past. Our people are

l°okjng ahead with courage and
confidence, and it is gratifying
tliat *n many Parts of the world
atmosphere has become en-

ccmraging and hopes have been
lifted. A world at peace can best

manki.nd> and a strong and

serve

prosperous

America is the great-

£. t assurance
a's5urance

of the attainment of

or tne attainment oi

true and lasting peace. Let us

a

that
we
shall
h0pe
ancj
pray
Wp
shall
demonstrate the good sense, the
and

Datience

Patience
will

that

iudgment

the

ana

me

enable

nrnmjcP

that

juagmern
fulfill

in at
the

to

us
the

future

£, ™ „?t„

holds

for

numanny.

King Merritt Adds
(Special to The Financial Chronicle)

LOS ANGELES, Calif.—George

pro-

of

people. The coming of the

Atomic Age has opened

'

,

prosperity and, in turn, the
of

our

of

Future Holds Great Promise
The future holds great promise

.}
have a genuine stake
the preservation of our own

motion

keep
base

and the strength of peace
depend.

to

made

Nevertheless

to

stable

upon

should

prosperity and
prosperity. This is one of

the greatest

help
a

own

appreciate

American

worid

will
on

this audience

Houston

the significance of the inter-relation be-

m

.

expenditures for travel abroad

and

o£

reside

particularly

-

,,

In addition, the flow of
produced
by prosperous

tions

Those
who

in

important respect.

t

in

so

system of free business enterprise
to
our
friends throughout the

agitation

be

lessons

doing, we shall
the American way of

J®?"^A10"L.w."en ,?ru°L stood that

conditions

perous
men

likely to
restrictions

hardwon
In

strengthen
life and transmit the fruits of

fjovv

sustained

of

these

the future.

world.

sustained

our

amenable

gree of control.

of

had

E- King is with King Merritt &
Co., 1151 South Broadway,

sp0nsibility to support the sound,
stable

growth

which

upon

With Paine,

the

preservation

of
that
prosperity
depends. This responsibility of the
financial community does not rest

Webber

(Special to The Financial Chronicle)

LOS
p

ANGELES,

Mnrfpnson

is

Calif.—Merth

now

connected

in''the cre'atio^ ^aXuonaTdo ^ in the laps of those who are withPafne Webber, Jackson &
lars tvifh which £5g£ tn Zklnf
STw£ Curt* 626 S°Uth Spdng Stre6t
pay for impoits from the United
-

Our

prosperity is reinforeign demand for our

forced

as

goods

increases.

And

the

upon

to

us

limits

and

sources,

seek

terials

of

these
new

our

in

own

turn

in

ma-

countries in

other parts of the world.
is

re-

cause

of

sources

from friendly

investment

Capital

stimulated,

which
in turn furthers the
goals of economic improvement and a rising
standard

of

living for other

na-

tions.
Our
;

therefore, is simply
maintaining a strong and

domestic economy,
failure to do
so
could
be

Our

critical, both at home
our

years

might

success

of

stable

well

and abroad,

in

achieving many
economic growth

assure

the

preserva-

tion of Western ideals and civilization with the valuable

by-prod-

u!rt°•a cons^an^y rising
of

living for both

our

the

standard
own people

fre'^'world?a'i0nS thr°Ugh°Ut

What
in

are

our

this

the

record

can

be taken

of

prospects for

vital
the
as

an

sue-

endeavor4?
past few

business

ception.

The

tions

our

of

mendous

aspects

of

must

do

great

is

country

ex-

no

trust

institu-

face

tre-

a

challenge in the admin-

istration of wealth—the very root
our economic system. The safe

of

and constructive

they

manner

administer

this
wealth,
bearing upon
broad
economic
developments
which are ultimately reflected on
the world scene. This is not to

therefore,

that

has

our

a

trust

If

years

indication,

our

as

an

institutions

eco-

power in themselves, but
important group of financial

intermediaries,

they

must share
the economy,
responsibility for seeing that
their
policies
and
actions
are
geared to the preservation of ecowith other groups in
the

Throughout the

years

our

institutions

have

been

tive.

must

continue

conservative.

we

can

Their

be

bert E. Miller is now with Protected Investors of America, Rus3
Building.
_

-

_

a JJ

Real Property lnv. Adds
(special to the financial chronicle)

BEVERLY
james

acjded

to

HILLS, Calif.

Willcoxon

t.

the staff

has

j j

—

been

of Real Prop-

investments, Inc., 233
Beveriy Drive,
erty

South

Samuel B. Franklin

(Special t0 THE FlNANCIAL chronicle)
LOS ANGELES, Calif.—Eva F.
Baker has been added to the staff
of Samuel B. Franklin & Company, 215 West Seventh Street,

trust

(Special to The Financial Chronicle)

conserva-

to

function

be
in-

volves the conservation of wealth.
Yet

Prnferleri Inv

WK" rrolectea lnv*

With E. H. Hansen Co.

nomic stability,

They

Willi

(Special to the financial chronicle)
SAN FRANCISCO, Calif. — Al-

in which

nomic

prosperous

But

trust

other

business

comprise a concentration of

Primary Role
J

prosperity,
of

in

and
their part.

infer

America's primary role in world
that

engaged

banking
The

conditions

prosperous

the United States introduce strains

cess

an

country.
Conservatism

our

m

since

funds to carry, and
debt will, so it is

estates

period

unwillingness to change. It does
mean, however, that the basis for

are

professional
others throughout the

of

not

States.

Fiscal looseness has lost its terror for the

earlier

AfMflVlfiA G KAlA IV! U/Afln Pf ACTIOVlll7
AlllCilVtt 9 IWlv lift IV Villi A Av3|fvAAIjr

care a

on

the
our

22

page

replace the creation of

kinds

rest

cried with statements that other
one

from

m

to

the

budget mindedness should be made political

ure

Balanced—So What?

important. No

hearing

many

Budget balancing
part and parcel of the "Old Deal" and,- for that rea¬
was unworthy and deserving of death.
was

have been

as we

tended

liabilities of the first water.

hamper them. A great

time in the future, but that time

one

was

public finance. Slurs such

of late about

things
were soon found to be far more important than making
both ends meet financially. In point of fact, virtue was
found in the deficit as such. Prices had been adjudged too
low. President Roosevelt had again and again and again
promised to raise them. One of the ways chosen for this
purpose was to monetize an ever increasing debt.
Of
course, the budget was to be brought into balance at
some

any

sound

We See It

interests, he will place a demerit against the name
candidate for office who speaks slightingly of

own

of

Us

Thursday, November 24,1955

....

proud of the

oDitzbarth
H

p.':crht

^^4 addled
the business to the changing needs
the tim.es—as new forms of

wealth and new institutional and
structural
arrangements
have

&

Avenue

connected with
104

Co.

South

'

avenue.

ac-

of

is'now

Hansen

With H" L JamieS°n C°'
(Special to the financial chronicle)
Calif.—Merritt

LOS ANGELES,

G. Lucas is now with H. L. Jamieson

& Co., Inc., Russ Building.

Volume

182

) Number 5484

Continued

from

.

.

.

The Commercial and Financial Chronicle

ments

5

page

this

on

subject,

all

for controlling the

necessary

that's

Johnny Podres. There is

econ¬

that

economic

the

doubt

no

the

of

status

is to turn the money supply farmer has worsened considerably
on and off like a spigot.
We ought during the past four years. Equal¬
to
live
in
constant
trepidation, ly, there is no doubt that the farm
therefore, that someone may for¬ problem calls for the most in¬
get to turn on the water at a time telligent
political
handling,
omy

The Threat of

Inventory Recession
And Other Economic Soft Spots

casting, they seem almost invari¬
ably to have been wrong.
For

example, it would be difficult if
not
impossible to find an eco¬
nomic

indicator

with

the

world than
from

1946

tional

1949,

market

stock

When the

1949.

na¬

buoyantly rode
inventory recession of

painfully
that this
of ours is far
prolonged de¬

the stock market
birth to the idea

gave

postwar
less

economy

vulnerable

pressions
1929.

to

than

the

of

economy

1955, that idea had
finally grown to manhood, but it
as

By

in

the

of

omniscience

the

much

have

difficult to

pretty

faith

stock market when it took 10

long

what was
fairly obvious back in 1945. This
is another way of saying that, if
business
activity and the stock
fully

years

market

they

realize

to

actually divorced,

not

are

rate bedrooms.
is the
dom

prosperity
ket

In

opinion, it

my

beginning of economic wis¬
not
to
predicate
business

or

on

rising stock mar¬

a

recession

business

a

As

on

Our

Foreign

Vulnerability

Trade

alleged weakness in
today's economy is our vulner¬
ability in the field of foreign
trade.
With
England
making
frantic efforts to get off the ropes
by increasing her exports to us
and
with
Japanese textiles al¬
ready flooding the American
market, it is feared that our mer¬
chandise export balance will be

let me illustrate the reason
doubts with a little bit of
personal history. Early this year,
three prominent midwestern com¬
mercial
bankers,
all of
whose
names
you would recognize, vis¬
ited my office. My chief purpose
in
telling you so is to impress
my

with

importance, my sec¬
ondary purpose to tell you what
they had to say. All three of them
you

claimed

hilt."

and

made

will go begging for
competition with the

goods

buyer in

that

products of cheap foreign labor.
the

be

from

it

deterioration

of

international
or

on

of

derogate

possible

a

position

our

markets

in

export

on

individual companies

and industries.

definition

to

me

effects

adverse

houses

my

a

In

mine.

"loaned

the

to

up

taking on no
and holding old

their

minimum

credit requirements.

So much for

to

customers

lip-service to the screening of in¬
tended

debtors.

Now what do

ing

the

extension

find

we

on

review¬

industrial

agri¬

and

cultural loans—the so-called busi¬

loans—increased

contrasea-

from Jan. 1 to June 1.
On June 1 they took off into the

The time-honored
it

has

break¬
ing through the sound barrier. I
will not bore you with the old
stratosphere and

that

recession

a

are

now

about Maxie Baer fighting
Louis,
but
if
my
banker
friends
are
really applying the
to

credit, we had better
watch the referee, because some¬
body must be lending some shortthe facts—now for

the

According to good
economic
doctrine, ris¬

theory.

classical

ing interest rates should discour¬
age businessmen from borrowing,
and

particularly from borrowing
Unfortunately,

long-term money.
most

as

of

shuffling

should

what
two

find

us

this

off

be

different

before

out

coil,

mortal
what

and

things.

is

are

Cruel

,

directly affected by
foreign competition are under¬
standably frightened by the ogre
of vanishing markets.

of what

the prospective borrower
they will be. Now all of
benighted human beings are

thinks

indefinitely

extend

to

prone

The problem
of
petition, however,

any

one;

foreign com¬
existing trend. When the Brook¬
is a specific
lyn Dodgers lost the first two
it hardly touches the Ameri¬

can

economy

a -

as

whole.

Our

exports barely amount
l/25th of American business

gross

to
ac¬

tivity and our net exports to only
1% or so. Unless one is dedicated
the

to

the scal¬

proposition that

lops around its circumference are
what make the pie, this country
is

against

insulated

singularly

the

in

conditions

business

out¬

It is therefore enter¬

side world.

taining, but hardly instructive, to
to
periodic
forecasts
of
the
doom
about
to
befall

listen

America

result

a

as

of

political

in Afghanistan or a
sharp drop in the price of Persian
rugs.
One of the more recent
examples
of thus losing
one's
sense of proportion
was the dire
warning of certain economists in
upheavals

late

1949 that the American

com¬

of the World Series, I was
sure
that they would lose four
straight and was ready to cut my
throat. In like manner, most busi¬
games

nessmen

interest
if

the

rising

doors

of

the second

interest

rise

to

ahead,

in

why,

dozen

a

than
years.

if the long-

even

structure

rate

further
no

down

higher

were

interest

term

broke

lending agencies in

been

And that's

That's

quarter of 1953, when

rates

they had

tomorrow

today.

virtually

they

that

sure

rise

will

rates

they're

why

perfectly

are

in

disaster

the

were

months

would

befall

expenditures.
What's
more
to
the
point, the
monetary authorities are likely to
tread very gingerly in the direc¬
tion
of
tightening
credit, now
corporate

that

capital

Presiqent

Eisenhower,

the

modity price structure would col¬

symbol of business confidence, has

lapse if England were to devalue

been

stricken.

poor

one

the

prophecy

This

pound.

fell

In

opinion,

my

perhaps

but

somewhat short of fulfilment, and

long-term interest rates

it

likely

stupid

was

ever

to have made

The

A

Credit

third

people
hands

source

like

who

the

over

of

concern

wring

sorry

plight

the

business

of

credit.

bubble

not

may

be

burst

by the restrictive credit
policies of the Federal Reserve

Board

and

the

attendant

rise




Will

in

"Built-in
Be

of

Hardly
an
economist in the country but
raises
the
question of whether
tightness

stable

own,

are

more

than

in

rise

to

the

near

to

their

the American economy is the cur¬
rent

be

appreciably

a

my

future.

Squeeze

to

to

fall

or

it.

Not

as

this
our

port

financial

the

a

dead

the

horse

adequacy
to

en

sup¬

boom,
let me say a word about becoming
obsessed with the magic properties

judge by

some

that

not

the

high

other

the

money

large or small,
'round. To be

way

specific, full employment,
rates and so forth pro¬

more

wage

duce

a

they

supply

large

of

money;

not produced by it. For

are

and

now

forevermore, let
supply
fret
about

money

the
the

not the economy about
the money supply.

economy,

Another
mon

of

those

of

the

more

mental

who

the

the

of

worst

likewise

front,

field

com¬

indigestion,

expect

economic

concerns

far

even

and

money

We've been concerned thus

with

the

enough

contention

business

that

not

will

be

credit

available to keep the economy on
an

keel;

even

let

now

us

the claim that too much

credit has already

particularly
in
field,
a
claim
economists

consumer

been extended,
the
installment

that

proves

we

capable of worry¬
both sides of the street at

ing

on

the

same

On

examine

.are

time.

this last posi¬

surface,

lot to back it up. Where

a

installment

debt
averaged about
disposable' income
just
prior to World War II, it is higher

7%

of

than

10%

ting

higher.

food for

today and rapidly get¬
There is plenty of

thought in these statistics.

Unquestionably,
cannot

installment

continually mount,

debt

vis-a¬

vis the wherewithal to pay it off,
without
grave
dapger for the
economy.

Unquestionably,

consuming

public

cannot

supply. To

of the pronounce¬

A

a

ball

the

interests

this

is

borrow

for

another

place.

comparison

is that

we

debt.

the

of

a

vital

and
properly

true

is

time

subject

a

and

another

today is the loose talk,
the farmer's

serve

interests,

the farm

to the effect tnat
depression of 1926 paved

tne

lor the

way

The

1929.

textbooks

business disaster

majority of college
this

proposition
one-time ca¬
pacity as a Professor of Economics,
I used to comment sagely on this
axiom myself.
When I was later
accept

axiomatic.

In my

let loose among

the robber barons

Wall

of

Street, I had to sharpen
wits in self-defense, and I

my

finally

experienced

the

figures. Here is how the
farm
depression of 1926 led to
the
general debacle of 1929: In
up

1927

income

farm

gross

higher than in 1926, in 1928 higher
than in 1927, and in 1929 higher
than in 1928. It cannot exactly be
said

that

these

the

collapse

statistics

notion

started

farm."

I

sion

look

to

rate

strongly

that the

"down

the

along with
great lessons of

other
both

ratios

this

the

two

my

life,

First,

that it is possible
to sleep under utterly impossible
conditions;
second,
that
you
should

hold

and not

hit

it

nail

a

near the head,
point, when you

the

near

with

Decline in Commodity

Before

closing the books
outlook, a word

decline

in

business

months,

wholesale

of

daily

commodity

spite
last

index

of

prices

is

if

industrial

materials

raw

excluded from the lineup. For

may

in

the

railroad

and

stallment

used

paper

form

of

rapid

fares.

payments

Today's

supplant

cents

the

course,

25

one

no

obligated

to

a day
iceman.

the

pay

was

buy

in¬

refriger¬
lesser degree,

or

to

go

on

ators, in greater
used

to

transit

we

Of

contractualiy
cake

of

ice

prior to World War II, but it
a
good idea to do so if you

was

pected

to

living in

something

eat

shredded

a

ex¬

washing

household

to

pay,

and

appliances

other

the

are

In

you

used

to

short, it is natural and
that

reasonable

in

least

at

or

to butlers, cooks and French

maids.

bete

installment

debt

are

is

not

there

is

the
some'

limit

and

indetermi¬

point beyond which install¬

ment

debt cannot

safely mount.

out

discussing

farmer

the

business outlook

would

recent

mentioning

the
be

world

Duke

plight
like

with¬

of

the

reviewing

series

without

Snider

or

of

than

often

structure

forerunner

of

a

not,

(4) That

has

though it could become so

come,

in

the

future.

(5) That the prolonged decline
in the price level of commodities
other

than

is

eral

economic

lour
seem

of

too

years

that

should

the

have

this land

ple

using
that

at

American

of peo¬

presents

us

and

the

by

opening

at

once

challenge
To jud^e

a

in which

way

you

mem¬

bers of the American Meat
tute

have

past,

you

tests

Insti¬

the

of

will not fail to measure
the requirements of the

to

up

the

met

eco¬

before

up

opportunity.

rare

a

The

economy.

nomic prospect

future.

Loeb Chairman in
United
Henry

Hospital Drive

A.

Loeb,

a
partner in
banking firm of
Carl M. Loeb, Rhoades & Co., has
accented the chairmanship of the
Hospital Trustee Division of the

the

investment

Hospital Fund's 76th an¬
fund-raising appeal, it was
by Sumner B. Emer¬
general Campaign Chairman.

announced

son,
Mr.

Loeb

is

replacing

the

late

William

Woodward, Jr.
«•
Mr. Loeb,
who lives in New
York
City, has been an, ad;ive
Fund
Last

volunteer

he

year

the

for

Hospital Trustee

Division.

board

direc¬

of

Sinai Hospital,

tors of Mt.
been

yoars.

many

vice-chairman

was

member of the

chairman

trustee

he has

for

Mt.

Sinai for the past
1955

two years.
Hospital
Fund'3

United

campaign goal
will

is $3,500,000,

distributed

be

member

basis

the

on

of

and

free

of

the

below-cost

provided the

of

needy

ita

to

nonprofit

voluntary,

ward and clinic care

commu¬

our

Formed in New York City
Scholl

&

in

be

of

art,

can

be

the

have

alarm that rings whenever

a

fire-

there's
a
fire, but the firemen are going
to
be
run
ragged if there's a

Slew-

Exchange;

the

of

member

Prentice

S.

William

Strong,

Greene, who will become

change member, general

an ex¬

partners;

limited part¬
Mr. Scholl and Mr. Stewart
been
active
as
individual
brokers.
Mr. Strong is a

and Ruth H. Strong,
ner.

floor

or

member

Exchange; John A.

the

would
1951,

Broadway,

will be Thomas F. Scholl,

have

economy

120

Co.,

City, members cf the
Stock Exchange, will
formed as of Dec. 1. Partners

eco¬

general charge

to

Scholl & Co. to Be

least

it

early,
national

faltered

idea

full

are

the Notre Dame football team and

the

at

practice of using
commodity price weakness as a
bellwether of depression.
It's a
wonderful

ours

persisted
in
betting
against' the New York Yankees,

an

is

continuously and sharply, not now
when
this decline has virtually
halted.
In
the
second
place, a
more

of

who

York

1952, when commodity prices fell

much

optimistic

an

My only excuse for mak¬
it is this: The skid rows of

New

commodity prices has
been going on for more than four
years. Aside from the general im¬
indicator

gen¬

a

bust.

Admittedly, this is
ing

general busi¬

wholesale

nomic

mate¬

raw

signal for

forecast.

York

place, the current
the
daily
index
of

practicability

the

not

New

two gaps

in

decline

industrial

rials

been

first

the

is not

debt

consumer

yet out of line with consumer in¬

com¬

Fortunately, there
in the reason¬
ing behind this theory.
In

our

on

that

relapse.

one or

down

tumbling

heads.

the ' medically

prices are a
many
economic

More

price

levelled

To terminate any talk about the
near-term

admitted

told, debility of the

modity

loom

sky

structure

nity.

be

must

noire

our new

postwar society should
larger against
the
back¬
ground of disposable income than
it did prior to the war, though

setback for

commodity

prophets.

ness

materials

decline in retail prices

it

Now

we

year,

economy?

falling

are

counterpart of the wages we used
pay,

over-all

reces¬

(3) That stringency of business
the business

amount

a

inventory

the

credit will not bring

hospitals

a

inventory recession
question in the im¬

1956, is possible but not probable.

commodity prices other than those

general and

an

(2) That

for

in

outlook,

sion scheduled for second quarter,

82

portend

fire.

mediate future.

which

Finally, we are
virtually "servantless"

machines

(1) That

is out of the

a

the

society today, and the installment
charges on our vacuum cleaners,

ex¬

with

raw

but
andt

gong

business

short-term

which this assemblage
possibly
be
vaguely
ac¬
quainted.
Does this soltness in

traordinary weakness this

industrial

the

rung

believe:

The

besides

wheat.
a

I

A

fact

automobile

the

of

today than it was
and
substantially

ago,

year

has

legion-

is

To summarize these views about

a

be

out

it

of

there wasn't any

somewhat lower

lower

example, hog prices displayed

on

the

the

today,

misleading.
Some
small part of today's repayments

the

on
on

In

order.

boom

the

Prices

commodity

be in

may

the

reference to the different patterns
of life in these two periods, can

seriously

when

nual
The

ing

without

number

United

hammer.

a

are

and

times

learned in the United States

Army:

com¬

depressions,

the

deci¬

facts in

right

case

fairly

has

the

on

brilliant

my

up

1929

softness?

price

that

true

monly preceded

was

income obtain¬

1940

of

stroke

a

intuitive genius—I decided to look

be

commodities

com¬

between debt and

in

in

one,

be

done

which does not

12

installment

of

matter

bare

farmer

What I would like to

ment upon

of

Thin Ice

already skating on thin ice in

the

the

should

be

to

prices

A

of

the

In instalment Debt, We Are
What I would dispute

is

economy

his

recent

are

role

safeguarded by Government. How

of

in

rolling.

Now
our

It

steady stream of false alarms.
may

depression

put the over-all economy into
tailspin has already started tne

cropper.

on

ominous

will

business

Skating

of

welter

forecasts that the farm

without limit against future earn¬
ings without eventually coming a

\

signs point to its
a
political football

made

support

the

tion has

all

1956.

as

and

cause

for

being

sacred

as

small because

or

of

business

of the so-called money

to say

sense

Nevertheless the facts

supply is large
the economy is

though

mechanism

current

the

whereas

in

anything

assert

to

nate

whip
subject of

common

at

money.

seem

the

Stabilizers

Effective?

to

keep

boiling.

pot

fun

poke

interest rates are, but on the basis

us

of

ex¬

says
that,
generally
lose your perience
depression when I lose speaking, businessmen don't bor¬
row money on
the basis of what
line with this definition,

businessmen

to

necessary

lots

this

money.

So much for

when

theory?
It is probabiy
sacrilegious for a "Wall Street
Man," whatever that may be, to

Joe

term

is

What has
of

gag

screws

present

economic

credit.

actual record of credit
this year?
Merely that

commercial,

the

water

were

accounts,

is in progress when you

job and

be

to

They

new

American-

eliminated

Far

strin¬

credit

of

fact

sonally

Another

a

going to

gency,

for

a

one.

the

to

ness

falling

I'm

myself of heresy and put
myself beyond the pale of re¬
spectable economic forecasting by
questioning both the fact and the
theory of money tightness.

at least occupying sepa¬

are

Here

rates.

like

convict

was

economy

the

out

business

the

of

the
to

out of tune

more

facts

interest

37

(2221)

& Co.

partner in Prentice Strong
which
will
be
dissolved

of

as

Dec. 1.

Sprayregon, Borinstein
Sprayregen,
members

Exchange,
Dec.
way,

will

1

will

with

New
be

Borinstein

of the New

formed

be

offices

at 39

City.

York

Richard

H.

.T

Borinstein.

Co.,
as

of

Broad¬

Partnera

Sprayregen,

member of the Exchange
thur

&

York Stock

and Ar¬

38

(2222)

The Commercial and Financial Chronicle

Continued

from

increasingly difficult to compete, will continue the trend

cover

of

place for several

Outlook for Liquor, Wine
Beer and Related Industries

With

for

these

The

than

in

has

been

with

appears

for

many

and should accelerate.

We

than

James

The
and

B.

Beam

seized

11,943

outlook

for

favorable for
income

consumer

BLUM
the

of

our

will

consumer

spending. Population

85%[more than in 1946 and 13.4%
Federal men,

and
general
building, as
highway improvements and
construction
for
private
interests.

total of almost 23,000.
These captured stills,

and those which

doubt

no

woo

who feel they cannot afford to
price of the legal product.

consumers

the tax-inflated
Lower

prices

the

to

which would result
from a lowered tax, would enable the legal liquor in¬
dustry to recoup some of the losses it has suffered to the
moonshiners.

They would

however, result in

not,

any

increase in overall liquor consumption.
Last

Americans consumed 1.18 gallons of legal
per capita.
Total consumption of both
legal and illicit products came to 1.62 gallons per capita,
or
19% less than per capita consumption during Pro¬
year1,

distilled

spirits

It is not

anticipated that

to $9 would eliminate

the upward trend

shift

reduction of the excise tax

a

moonshining, but it would

reverse

preyailing Since 1946.

:

in

liquor would

dmpti<
consumption
from moonshine to legal
benefit the Federal Treasury, and would

help to offset

any

reduction.
The

minor loss that might result from tax

'

government's

operations last

tax

loss

resulting from moonshine

well have been in the vicinity

year may

of $700 million.

EDWIN

J.

ANDERSON

We

expect

volume

and

position
for

a

that

1956

will

be

a

year

of

to

meet

increased

competition.

year of greater sales volume
our

are

The

in

a

good, due to
population and the

expanding

evidenced

big

by

the

tremendous

for straight whiskies as com¬

pared

to

that

blends.

is

It

consumption

1956 will be close to

r

high.

Harry Blum
We, at the James B. Beam Distill¬
ing Co., are not planning on mar¬
keting or promoting any new brands for 1956. The policy

for

1956

is

to

in

1956

and

that

this increase will be

cantly for
search

the

rate

of

growing signifi¬

many years to come.

has

indicated

that

Re¬

the

concentrate

efforts

our

and

increase

our

advertising and support programs on our brands that
are showing a much higher
percentage increase on the
already increased consumer demands for straight

J.

We
to

hopeful that Congress will find it necessary
appropriations to the Alcohol and Tobacco

are

increase

Unit for stricter enforcement against illegal
liquor.
Some sources have quoted as high as 25% to 30% of

consumption in illegal spirits. Naturally a stronger and
enforcement program would materially effect
our industry with a
greater gain in legalized consump¬
stricter

tion
I

thus

increasing the sales of legal distillers.

believe

the

top officials of the industry have come
that price cutting or
endeavoring to
imitate well known brands, is not the solution for in¬
creased sales and profits. We all
agree that imitation
to

the

conclusion

will not eliminate

competition. Our philosophy at Beam
is our obligation to
supply a product of quality at a
price that will satisfy the consumer that he is getting

establish

brands

on

of

From

all

Kentucky
pliances

reports

Straight

or

marketing basis

and

items

that

are

indications, whether it
Whiskey, household

be

Bourbon

ap¬

consumer

offered, it has become increasingly evi¬

quality item.

GEORGE

the

first

and

the

taking

Again,

brewing industry should be

to

benefit

increase

place
we

from

the

increase

in

leisure

last

year,

when compared to the industry's
high mark of 231 million gallons set
in 1946, this year's second best is a
strong indicator that the distilled
spirits industry is not keeping pace

hours

disposable income which has been
spectacularly since World War II.

so

will

increases, we expect that
along with it.

continue

With this

the

tense

in

beer sales volume will
increase

competition
1956

and

in

for
the

consumers

will

be

expect

more

in¬

total

number

of

will

following as well. The
brands competing for these
consumers

continue

to

decline.




years

Smaller

breweries, finding it

over-all

country.

The

economy

less

than

The

1955

the
Geo.

L»arv.n

liquor

Brown

economic

Federal
ran

ago

blends

-

about

1954

economy

1940's 10,663, a year when
realistic $3 per gallon. It is estimated

a

approximately 20,000 illegal stills seized
Federal, state and local authorities. During

by

year

heavier than

was

Prohibition

the

$9

year,

as

for

ran

only

22,000 to

industry gets promised tax relief in

rate,

200

consumption

to

210

million

of

distilled

25,000

1956,

spirits could

at

run

gallons, pending the effective
gallons.

estimated

consumer

expenditures

for

This

distilled

year

spirits

be

approximately $4.4 to $4.5 billion. If realized,
industry's share of the consumer buying power
be roughly 1.66% as compared to
1.70% for 1954;

1.88 in 1950 and 3.18 in 1946.
Today's share is equivalent
that seen in the Depression
period two decades ago.
This is just another indicator of the

to

that the current tax rate has had

strangling

on

effect

the distilled spirits

industry.

*

J.
President,
There

is

little

B.

CELLA

Cella

Vineyards,

doubt

that

the

Fresno,

1955

crop

Calif.

will

be

one

of the

largest for the California wine industry. This in
tend to give the impression that a
large
inventory will result and that the natural law of
supply
and demand would prevail
resulting
in lowering of prices.
I feel, how¬
ever, that if not already recognized
by most members of the industry it
itself

will
of

would

be

the

realized

crush

tonnage

was

because of

recovery,
gars

in

the

in

result

the

at

conclusion

that, even though the
large, the gallonage
the

this

grapes

lower

su¬

will

year,

inventory needed to
handle the demand during the com¬
ing

an

year.

In

addition, it is
large gallonage

grape

concentrate

duced

this

opinion that

my

of

brandy
being

is

and
pro¬

which

will take
away substantial tonnage that would
have normally gone into wine pro¬
duction.
to

hold

year,

J. B. Ceiia

Therefore, these factors should not only tend
the

present

prices

but

could

very

well

result

in

rising prices. Certainly I believe this will be the
fact if during the Spring it shows that the crop will

MAURICE

Cordials
factors

in

and

the

J.

COOPER

liqueur specialties are now important
liquor industry. Each year cordials and

the specialties of cordial firms

are

gaining

centage of the over-all liquor market. As

aware

up

the

preferences

current

decade.

expected, the downward trend in
spirit blends has continued with

a

big change in

American

people,

as
Alexanders, Stingers, and
Grasshoppers, are made exclusively

from

Maurice

J.

cordials.

cordial

houses

of

America

have expanded their scope cf activ¬

Cooper

ity and besides the continental cor¬
dials, such as Creme de Menthe,

Five

60% of the total domestic
output,
and bonds nearly 10%.

the

such

The

Last

of

their constant desire for better

living; the American public has been
increasingly favoring drinks known
as cordials.
Many leading cocktails,

have

doing three-fourths of the total
business while straights held only a

greater per¬

a

of the sales appeal of cordials.

tastes

with

ihdustry's 4.5%.
type

a

class, cordials
are
the most attractively packaged
and colorful items sold in package
stores, bars and taverns. The alert
retailer is becoming more and more

static.

straights doing 30%

This

seizures

era

comparison
8% against

whisky
share, with the bond share then being 8%.

resentation

$9 Fed¬

a

gallons

are

this

just

or

versus

the

1.95

was

And there has been

of

were

year spirit blends did
with

of

consumption

fiscal year 1955, Federal seizures
of
12,50.9. This .is 11% greater than 1954's

growth

changed appreciably during the first
half

years

17%

1%,
-

the

Consumer

domestic
we

the

the

shows

.

opportunity for greater volume,

the

country has
averaged a 7% gain yearly over the
first half j of this decade while the
growth of the distilled spirits indus¬
try during the same period has been

of

and ac¬
celerate in the years ahead.
Beer is closely associated
with the pleasures of leisure
time activities. It is
largely
because of the greater leisure time
of Americans that
the place of beer
consumption has shifted to the home.
This has already resulted in
an increase in total
volume
in the first
three-quarters of 1955, and as leisure time

that

of

adult. Back in 1950 at

per

rate,

President, Charles Jacquin et Cie, Inc., Philadelphia, Pa.

but

with

tax

Corporation,

Consumption-wise, 1955 promises to be the second best
year for the distilled spirits
industry, with about 198
million gallons being consumed. This is a
4.5% increase

in

expect that the trend

Distillers

Louisville, Ky.

over

gallons

be normal.

BROWN

President, Brown-Forman

con¬

one

G.

gallons

served

there

will

will

and

consumer.

be it the many thousands of other

these

for every
brewer, is available.
We feel that the

million

date of the lower tax rate. Without tax
relief consump¬
tion should run about 200 million

a

sound

a

win the recognition and trust of the

beer drinkers
increase, the
opportunity for greater sales volume

Anderson

190

of $10.50 per
distilled spirits has not only cut
consumption,
as
incentive to the moonshiner. Con¬

on

2.51

whiskies.

sumers who account for the
greatest
share of beer
consumption are in the
21 to 40 age
group. As the numbers

Edwin

In

the

After many years of
decline, 1955

tinue

of

would

a

reaching

consumption

■

illegal stills

from

opinion
the year

all time

an

im¬

adult.

per

the

my

during

14%

a

still

1950's

excise

If

spent for rehabili¬

erence

1954

the major problems
confronting the distilled
industry in the coming year is an unrealistic

ran

eral

industry has

brewers.

age of 21.
Population analyses
indicate that this increase will con¬

about

yearly.

dent that the consumer is most interested in
purchasing

the

show

match

of

has

the

increase in the available time for in¬
dividuals to consume the product of

is the first year to show an increase
in the number of
people

exceed

One

a

Mo^t
important in our industry is that the
public has indicated a strong pref¬

outlook

is very

will

will

whiskies, but the

by 4%.

tain

greater sales

profits for those breweries which

will

that

the best value to be had. The
companies that will main¬
their growth and profits will be those that will

President, Goebel Brewing Co., Detroit, Mich.

1955

bonded

1950.

11,266 and 17%

additional

Tax

hibition.

Any

for

tation and increased capacities.

pay

consumer,

of

amount of money

apparent consumption of legal liquor amounted to about
189,000,000 gallons.

is

1954.

the tax rate

markets,

new

need

confidence

been

to operate unmolested, produced an estimated
72,000,000 gallons of illicit moonshine. At the same time,

can

many

as

The

tinued

The huge proportions of the moonshine racket are
largely due to the excessively high Federal excise tax
rate on distilled spirits.
Tne moonshiner, who evades
all taxes, can operate with a high margin of
profit, and

of

housing

well

con¬

in

of

consumption, though holding even
off a significant 29% or
nearly oneStraights this year will be 75% above
1950's volume, and bonds will show an
11% gain for
the same period. Distilled
spirits in general this year
with

third below

it

encouraging
my belief that

the de¬

the

more than in 1953.
officials, operating independently of the
seized another 10,970 stills in 1954, for a

true

forever-growing straights

be substantially increased, which

factor in

a

is

It

reasons.

of

State and local

blends

holds

about

whisky

has

appears

company

several

because

stills—

spirit

also

only

domestic

three out of four.

was

sumption of distilled spirits on an adult per capita basis
been 1.87 gallons for the past several
years. In 1946

Board,

velopment

illegal

This

today do
the

of

provement. These changes compare with an over-all
distilled spirits' consumption gain of 4.5%. On a volume
basis this year's blend

but

Distilling Co., Chicago, 111.

will result in accelerated

legal

blends

bottles

spirits

growth has been
agents

be

are

HARRY

liquor.
Federal

sales.

the

years.

while

two

every

excise tax. The present Federal excise tax

One effect of the

rather

on

gallon

high tax rate has been to encourage
moonshining, which has been constantly on the increase
since the end of World War II, to the point where last
year, over 25% of all distilled spirits consumed in this

doubled

of

nificant increase in volume in 1956.

Chairman

moonshine

out

directing our attention to
increasing the effectiveness and efficiency of our over¬
all marketing activities and expect it to result in a sig¬

..

been

to

taxation

to

we are in a relatively strong
competitive position. Our maikets stand high in con¬
sumption per capita relative to the United States as a
whole.
Population growth in 1955 resulted in a 4%
increase in production in the state of Michigan alone

tion of 229 million gallons would have meant a
per
capita consumption of 1.42 gallons, 14% below the 1946
figure, and 27% below the estimated Prohibition era

have

regard

We, at Goebel, feel that

gallons of its products instead of 189 million, while main¬
national pattern of moderation. Consump¬

almost

one

business while five years ago it

We expect this trend

degree of relief in the excise tax levies.

some

has

Volume-wise,

1956

brewers

of

certainly.

a

more
encouraging
We believe that in¬
consumption will be the result in the event that

it

there is

taining the

1954,

years.

is

Thursday, November 24,1955

.

.

type doing about 58% of the total output. Straights con¬
tinue their upward trend, capturing about 32%
with
bonded whiskies holding their 10% share.
So, in a matter
of just five years, straignts' importance to the consumer

taking

well.

as

outlook

creased

of the economy, it would have sold last year 229 million

may

been

volume

rewards

products

consumption expenditures have increased 69%, and dis¬
posable personal income has increased 116%.
If the liquor industry had kept pace with the
growth

In

greater

to continue

In 1942, the industry received 2.3% of the consumer
dollar, and in 1954 only 1.6%—a 331/3% loss. And since
1942, the adult population of the nation has increased
17.4%, national income has increased 118%, personal

country

has

available and fewer brands to
it, the rewards for successful selling in the beer
industry in 1956 will be greater.
Increased competition

the current national prosperity.

j

which

share

Repeal, which has brought the excise rate up 854%, and
has kept the liquor industry from
enjoying its share of

figure.

consolidations

and

mergers

.

Creme de Cacao

developed
—and

and

cordials
have

fruit flavored brandies, they have
more
to
American
tastes

tailored
Rock

and
Rye, Ginger Flavored
Brandy, and Sloe Gin. Cordial firms are the leading
producers of the vastly popular Vodka.
Vodka sales
so

we

rep¬

this

Continued

on

page

40

Volume 1182

Number

Our

5484

.

.

The Commercial and .Financial Chronicle

.

Reporter

(2223)

Governments

on

Railroad Securities

the corporate

39

gift

By JOHN T. CHIPPENDALE, JR.
==

The

Banks

upping

the

of

not

was

rediscount

unexpected

rate

by

though

even

the

the

Federal

timing

nouncement of the rise in the Central Bank rate did

-

element

of

surprise.

increase

in

the

there

were

Monetary

rediscount

rather

statistics

rate

in

was

the

the
that

an

Nevertheless,

widespread expectations that the fourth rise in

the rediscount rate would not

until

come

the year-end.

nearer

The Government securities market had

been

giving evidence
a more cautious attitude in the
past two weeks because these
obligations appeared to have been running into a certain amount
of selling as prices approached the high levels for the move. The
change in the rediscount rate brought a moderate amount of liq¬
uidation into a market which is still thin, and subject to quite a
bit cf professional operation. The continued hardening of interest
rates and the coming Treasury financing are keeping many poten¬
of

tial

buyers of Government obligations

on

the side lines

The

be

overlooked

Northern

is

another

the part of the money managers to tighten
keep the boom from blossoming into "runaway

on

move

order to

inflation."

The Federal Reserve

the money which it
banks to curb their

Banks, by increasing the cost of

lends, is putting
loans to

own

pressure

on

the commercial

customers.

end

refunding and

after the Treasury had

completed its

year-

raising operation.

However, with
the money market is

money

new

the pressure now

being intensified as far as
concerned, it is believed that the Treasury will have to make the
impending offering a bit more attractive.
"
:
'

upping of the rediscount rate from 2*4% to 2%% is

a

very

definite confirmation by the monetary authorities that the policy
of "active restraint" is still very much in force. The upswing in

Rail

the economy has resulted in a tremendous demand for loanable
funds, and the powers that be are attempting to slow down bor¬
rowings by increasing the cost of obtaining these funds. Up to now,
however, the interest rate raising program of the credit managers
<has net been too effective in cutting down the demand for money.

business virtually

operating at capacity, and taxes at very,
high levels, the cost of getting the needed credit is not too impor¬
tant

fit

a

factor

should

the

far

as

be

to break

power

most

as

remembered

borrowers

that

concerned.

are

However,

the

monetary authorities do have
inflationary spiral if they want to take

any

.the necessary measures.
The

rise in the

'

rediscount rate

•

followed

immediately by
a rise in the brokers' loan rate from 3J/2%
to 3%%, but it is not
expected that this will bring about a similar rise now in the prime
:bank rate. However, the pressure which the monetary authorities
are keeping on the money market ik
expected, as in the past, to
have its strongest effect upon short-term money rates.
Accordingly,
was

'

it is evident that there is

some

opinion in the financial district that

with near-term interest rates

turning upward, an increase in the
.prime bank rate would not be unexpected since this rate is like¬
wise considered to be

in

Increase

a

short-term

one.

~

-

of the forces which has had

one

upon

course

cf the

tion have to be dealt with.

Therefore, it
towards
ence

quarters that if the trend

some

higher interest rates does not have

upon

the future

some deterring influ¬
of equity prices, there will be another
This would not be an unfavorable

course

upward

past two

Average just

that

progress

"Northerns," the

recent price of 42 V2, Great Northern shows a 20% net
this year's low of 35% as compared with the similar gain
balance of 16% for the Dow-Jones Rail Average. Based on the

on

low of

22%

85%

against

as

for

year,

1954, which gives effect to the 2-for-l

Great Northern has shown

a

net gain of

net gain of less than 69% for the Dow Rail

a

Average from the 1954 low.
Thus the merits of Great Northern have not been overlooked,

standpoint of the road's exceptional postwar growth
efficiency of operation. Since 1946 the Great Northern
enjoyed a 50% gain in operating revenues as against a 23%

has

its

or

gain for the Class I total. In comparison with the other two "North¬
erns," the Great Northern has taken an increasing share year after
year for the past decade while the proportion of the Northern
Pacific has done little better than to hold, and the Milwaukee has
lost ground relatively.
This trend is recently less
months of this year the

nine

year-to-year gain in
for Class

but

I

it

neighbor roads.
in

the

showed

or

Great Northern

revenues as

This

past year

pronounced, however.

further

a

is the

iron

For the first
shown

because

shipments, still

the

of
one

not foreseen

was

would

On the

that the growth in traffic from other sources

was

than offset this seepage.

more

'

side of

efficiency, the Great Northern has one of the
Transporation (cost) Ratios among Class I roads, and at

lowest

32.3% for the first nine months of this year, this ratio is approach¬
ing its low mark of recent years set in 1953. Operations of the
road

are 90% dieselized in freight service and 96%
in yard serv¬
ice while passenger operations are
entirely dieselized. Steam power
has been entirely superseded west of
Minot, N. D., either by diesel,
or

on

its 73-mile line

through the Cascades, by electric power, but
even the latter is to be dieselized
by the latter
part of next year, with the cost of this conversion to be completely
covered by the sale of salvaged electric equipment.
it is understood that

The heavy reduction in debt achieved by the Great Northern
during the war years and the refunding of the balance in 1945 and
1946 at low interest rates has placed this road in a
very strong
capital position with the result of according investment character
to the stock. Unlike its
neighbor, the Northern Pacific, the Great
Northern has no oil properties to lend speculative appeal to its
stock, although this road has benefited traffic-wise from oil activi¬

ties

in

the

Williston

Basin.

eventually lost in large

While

shipments

of

crude

Budget Bullish Market Factor

According to reports, prospects are good for a balanced budget
This would be achieved, not by cutting expendi¬
tures, but mainly because of increased tax revenues generated by
this liscal year.

business boom.

bring about

However,

a

sound

fiscal

balance in the budget would

a

measure

area.

is estimated that the Great Northern should

$5.00 and $5.25

per

share this

between

earn

against $4.21 in 1954.

year as

expenses

other than maintenance.

R. L.

per

amounting this year to
Thus the $2.50 dividend rate that became

share.

effective for the second

half of this year

appears

well protected,

and particularly so in view of the road's strong current finances.
Both cash and net current assets have had a healthy gain this
year
date of

Members

tury

Club

The

of

members of the

Exchahge
changes,

ard

held

Dinner Nov. 17
Room

Club.

cf

the

Cen¬

&

New York

leading

their

7th

ex¬

Annual

the Manhattan

in

New

of 49,

Co.,

Stock

other

York

The Club has

presently

Quarter

Goodbody

of

a

membership

years

in

cf service.

Oldest

member

point of service is Marcus Good-

body,

senior

partner,

who

has

been associated with the firm since
1893.




on

a

with the unique

top

large capital expenditures budgeted for 1955.

With A. M. Kidier

Joins Hornblower & Weeks

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

Andrew

to Staff

Forman

M. Kidder &

is

now

BOSTON, MASS. — J. Wilbur
Chapman has become associated

A.

with

A.

Co., 400 Beach Drive

,

CHICAGO,

Engels
&

is

ILL.

now

—

with

Donald

J.

Hornblower

Weeks, 134 South La Salle St.

York

and

Boston

Stock

Exchan¬

ges.

CHICAGO,

staff of

Draper, Sears

(Special to The Financial Chronicle)

has

ILL.
been

—

Jack'

added

G.

CHICAGO, ILL.

to

the

L. Lohr is

now

Bear, Stearns & Co.,

135

Company,

30

—

BOSTON, MASS.
is

now

—

Robert

associated

Boston

or

colleague

gift list will appreciate

the handsome tribute of Beam's

Pin Bottle with the unique, dis¬

Worthy of Your Trust

with the Marshall

North

closure.,

j

La

Salle

St.

BEAM..

.

Distillers of the World's ■

Finest Bourbon for 160

Years.

-

South

La

Salle

Street.

I

.

Stopk Exchanges. He
was
formerly with H. C. Wainwright & Co.

86.8 PROOF
(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

CHICA'GO,

ILL.

Underwood, Jr. is
cis

I.

du

Jackson

Font

—

now

&

Boulevard.

Co.,

Morgan

PEORIA, ILL.—James R. Rind-

P.

with Fran¬

141

KENTUCKY STRAIGHT BOURBON WHISKEY

Joins Risser Staff

With F. I. Du Pont Co.

H.

with

Draper, Sears & Co., 50 Congress
Street, members of the New York
and

Every customer

your

Mrs. Helene

(Special to The Financial Chronicle)

DiCcmes

on

doesn't have to

thoughtless "routine" pre¬

built right in to the bottle

Marshall Co. Adds

(Special to The Financial Chronicle)

Swanson

Now With

a

|

tinctive "Pin Point Pourer" that's

Bear, Stearns Adds

with R. L. Day & Co., Ill Devon¬
shire Street, members of the New

be

sent.

—

/

8 OR 10 YEARS OLD
A corporate gift

PETERSBURG, FLA.

built-in

"pin point pourer"

yield of over 5.8% that this stock affords at the present time is
highly attractive.

good effect

Day Adds

BOTTLE;

PIN

showing that the large "cash flow" in the

North.

em¬

ployees and partners of the firm
who have completed 25 or more

report,

It is concluded that in view of the semi-investment character
of Great Northern stock and the growth aspects of the
road, the

less trips by the

Athletic

comprising

last

(Special to The Financial Chronicle)

Goodiody's 25-Year Club

BEAM'S

Furthermore, the factor of tax-

deferral due to fast amortization is small,

ST.

by

While

of this gain may be attributed to the relatively small reduc¬
tion in the rate of maintenance charge from the
high level of 1954,
it is mostly due to this year's gain in revenues and a reduction in

some

policy which would

mean

Treasury to the money market, and this should have
upon Government securities.

Annual Dinner Held

be

may

to pipe lines, compensation may
well be provided in an increase in
drilling and construction activ¬

of the

the

lag

of the

largest revenue sources. Evidence of the loss of some of
this business to competition from imported ore has justified in this
connection only the apprehensions of many observers, but what

road's income gives ample cover to the increased dividend

the money market would be concerned.

Balanced

6%

in relation to the two

gain

ore

a

estimated similar gain

an

remarkable

more

in

more

against

has

to

as

Great

the road has exceeded in

as

happening

far

about it

outstripping the

years,

increase in margin requirements.
as

thought

over

only 56 cents

:

is believed in

you

frequently

At the

gain

It

influ¬

an

the action of the monetary authorities has been the
equity market, which has regained nearly all of its
lost ground and is again very close to its highs for the year. The
psychology of a rising stock market is very important as far as the
economy is concerned, but especially so when the forces of infla¬
ence

Stock

the

ity and general growth in the

Margin Requirements Possible

It is indicated that

outstanding

within

as well as the other two
Northern Pacific and the Milwaukee.

-

With

is

road's

Active Credit Restraint Still Prevails
The

stock

growth the Class I total

There had been opinions around that the rediscount rate would
not be increased until

the

made

record

is

•

has

Dow-Jones

either from the

This latest rise in the rediscount rate

Northern

months, but by the same token, it showed remarkable
stability in the market break last September. But what is apt to

Banks have increase the rate which is charged

member banks of

Great

for several

increase in the rediscount rate by the Central Eanks cf the system.
was the fourth time, during
1955, that the Federal Reserve

'This

of

so

as

split in May of that

The Federal Reserve Board last week gave approval to another

credit in

behavior

unspectacular as to be less than interesting. It is
true that this stock has moved within a
range of about four points

some

•

market

described

adjusted

Fourth Increase This Year

the system for borrowings.

that says

Great Northern

an-

embody some

cards.

=

Reserve

of

evidence

gave

By GERALD D. McKEEVER

West

fuss
D.

J.

Bank

has

become

Risser

Co.,

Building.

affiliated

First

with

National

JAMES B. BEAM DISTILLING CO..
CLERMONT, KENTUCKY

40

The Commercial and Financial Chronicle

(2224)

The American wine industry has

Continued jrom page 38

^

contribution
burden

Outlook for Liquor, Wine
Beer and Related Industries
short of sensational, and today Vodka
even
outsells that great favorite, Rum!
Why this big
trend toward Vodka? Vodka is a unique beverage. It is
the truly great neutral drink, and with reason.
It is
made from filtered neutral grain spirits and because
Vodka is neutral, it can be mixed with any fruit juice.
It can also be used in any drink in which gin is nor¬

Thus, we have Vodka Martinis—
so on. People like the clear, dry
of Vodka and the fact that it leaves no after-taste
ingredient.

Tonic, and

Vodka and

taste

potentialities

CHARLES

The

Managing Partner, Inglenook

New

York

nized in all the United States
ond

bright prospect of a naturally strong and succeswine industry is beclouded by artificial
handicaps imposed upon it by governmental regulation
administrative

and

policy which threaten to kill it at
the
top
and
weaken
its
entire
structure.
Such

regulations and administra¬
tive
policy have been developed
independently, usually with other

paramount,
without
the
a
study of their related
effects
upon
the industry or the
opportunity of tracing the effects of
a depressed wine industry upon the
much larger grape growing industry.
benefit

of

These

larly
85%

yMmmm.
John

Daniel,

comments, based particu¬
conditions in the Cali¬
industry, representing

upon

wine

fornia

90%

to

States

United

Jr.

of

the

volume

industry,

of

and

the

the

California grape industry, represent¬

ing an even larger percentage of the United States in¬
dustry, apply with some modification to conditions in
the rest of the country also.

By virtue of typical American pioneering and devel¬
opment, the wine industry "reborn" with Repeal in 1933,
has made tremendous strides to produce wines in all

categories which are fine values in comparison
prices of merchandise of other industries in the

price
with

United
But

States today.
the

healthy

growth

of any country,

by Federal regulations strongly favoring
foreign wines and by slashing of the tariff on such for¬
eign wines by 70% from the 1930 level to a point where
imports of such wines have increased 582% from 1947
to

1954

of the

In

and

driving premium American wines

are

out

market.

ship
I

orders

our

take

this

public to

Champagne is
as

a

a

Federal luxury tax.

pagne

fraction of

since

so

seg¬

Irrespective of the arbitrary definition in tariff legis¬
lation of "Peril Point," the wine and
grape industries
of the United States have passed the actual
point of im¬

pediment and injury years ago, and need real protection
from foreign products created
by labor paid from onequarter to one-eighth of the American wage scale.
And

last, but not least, time is overdue for bringing
regulations on foreign wines parallel to those on Ameri¬
can

wines to give the

tection
from

on

consuming public the same pro¬
each, and to remove the American industry

its present competitive

At present foreign wines

to

10%

wines.
and

in

smaller

than

disadvantage.

are

those

sold

in bottles from

permitted

for

6%

American

Labelling statements regarding the vintage, type

place of origin of foreign wines go largely unverified
comparison to rigid supervision on American
wines,

and

standards

checked

in

of

quality

of

foreign wines

contrast to standards

among

the world under which American
wines




are

seldom

the highest in

are

made.

industry made

our

rate of

$8.16

The first tax levied

was

a

dollar per case, but it

a

many

has been increased
times that it has reached the exorbitant

paid by the winery when it leaves
against a rate of 410 per case of table wine.
Champagne! is not a luxury, it is the tax that makes
it a luxury.
Many old imported still wines sell at a
higher price, but are not taxed as a luxury. Why tax
bubbles as a luxury in wines, but not in water or soft
drinks? It just does not make sense!
The champagne tax represents $600 per ton of cham¬
pagne grapes, for which the vineyardist gets only $100
per case

the plant,

to

$150.

If

it

champagne

repealed,

was

retail

prices

would drop 35%.

Where

Apple

back to this traditional

distilled

outlet for the American farmer, and

opinion will

express

I hope that public
itself accordingly.

GRIESEDIECK

is

course,

Apple

done

in

for

name

product.

our

This, of

accordance

with

Brandy and Apple Jack

are

synonymous.
In

general, the

consumer

is swing¬

ing back to straight liquors as evi¬
denced

the yearly increases in
whiskies.
Our product is
Straight Apple Jack.
Part

by

straight
Laird's
the

of

of

for

reason

this

far

consumer

our

increases thus

be this revival
taste preferences toward
must

year

straight liquor products.
John

Other

Laird, Jr.

E.

factors

optimism

that

the

for

support

future

our
our

are

merchandising, and packaging
plans for the future. Our "Have You Met Jack? (Apple
Jack, that is)" advertisements have been appearing and
will continue to appear both at the national and local
publicity,

advertising,

The tradition of not only our product but

level.

of the

have been the
Our merchan¬
175th anniver¬
new label and
gift carton. All our point-of-sale materials are following
up our themes "Have You Met Jack?" and "Jack's A

generations of the Laird family,!
subjects of much favorable publicity.
dising campaign is highlighted by our
sary bottle which features our stunning
eight

Great Mixer."

Inventory position of Laird and Company is on a very
basis. Excellent apple crops, both this year and

sound

last, have enabled us to replenish warehouse stock which
had been depleted by increased sales over the past two

The amount of aged Apple Jack that has reached
maturity is sufficient to meet the increased demand for

years.

product.

our

operating costs are extremely high due to

course

higher taxes, increased labor costs and higher costs of
materials. Our base price (excluding taxes) has not been
in

increased

10

years.

Prospects for the future are good because of increased

Jack, although high taxes continue to
as in other segments of the

interest in Apple
be

JOSEPH

and aged

Federal regulations which state that

Of

Champagne consumption in the United States is con¬
sequently but a fraction of what it is in other countries.
The repeal of the special tax would provide an added

much of

as

burden here

a

industry.

President Falstaff Brewing Corporation, St. Louis, Mo.

High

taxes

rising production and distribution
again face the brewing industry in 1956,
,yet the coming year holds promise for increased beer
sales. Factors behind this optimism are the larger num¬
ber of potential customers
(in the
costs

will

continuing

rise

sonal

income and

ance

of

beer

bracket), the
disposable per¬

age

in

growing accept¬
beverage of

a

the

as

moderation.

After
number

adult

of

in

entering
low point

the

1954.

now

population increase of
people

from

tion,
of
Griesedieck

Josepn

in

was

With the trend

versed, the prospects
000

the

persons

market,

reached

the

nation

for

are

some

re¬

a

10

years

and, within that popula¬
50% increase in the number
of beer consuming age.

persons

Disposable
amounted

personal
to

about

income,
$200

which

billion

in

1950, should reach $280 billion in 1956.
These

parallel increases

industry sales increase is expected,
individual breweries will have to watch their profit
margins more closely. Beer prices have been held down
by the forces of competition, yet labor and material costs
have moved upward. Intensified
merchandising, necessi¬
tated by the high degree of
competitive activity has
an

in the wine

in

in

some

seven

and

eight cents

per

areas.

To offset higher unit
costs, emphasis throughout the
brewing industry is being placed on higher sales vol¬
ume,

and breweries have turned to

more

aggressive

mer¬

chandising and broader distribution of their product to
accomplish this goal.
Falstaff is in this pattern with

a

vigorous

program of

plant and market expansion, the most recent plant ad¬
being our sixth which began operation in Fort

dition

Wayne, Ind.,

a

little

over

a

year

ago

of

to supply needed

picture, in that the most popular sizes sold
quarts and flask pints. In the
York, New Jersey,

New

priced to the consumer at an
quarts and 50 cents

be

dollar for

even

for

city

including

pints,

which

and

state

in

most

prevail

sales

taxes

areas

except New Jersey, at rates of

2%

3%.

or

has

This

tended

stability

siderable

level.

price

the

has,

It

create

to

at

con¬

consumer

however,

not

created much stability at the whole¬
sale

price level,

national and local

as

brands, who are frantically compet¬

ing in this area in what is usually
throat"

"cut

a

manner,

in

endeavor to secure favored shelf positions, window

an

displays,

or

retailer cooperation across the counter. One

California vintner

on

give retailers

to

as

Martin Lefcort

are

markup

giving retailers up to 100%

Inasmuch

a

there

as

a

Rose' item has gone so far

new

200% profit.
are

so

brands competing for
these efforts are nullify¬

many

dominance in these markets, all

ing one another and have the retailers completely con¬

fused,

to who is giving them the best buy, that month,
effort is being made by 99% to push any

as

that

ance,

bottle

the

Connecticut, Rhode Island, and Mas¬

1955, and

driven the total direct tax to

City
of

sachusetts, it appears to be essential

so

number of local governments have also
ap-'
plied taxes on beer. Superimposed on the Federal excise
tax of $9 per
barrel, state and local beer levies have

area

dessert wines are full

states

increased advertising and selling costs. Added to these
are
taxes.
Several states have increased beer taxes in
a

Northeastern

entire

the

and

United States are different from the rest of the country

called

not

only point to larger in¬
dustry sales in 1956 but set the stage for much greater
increases in the years to come.

However, while

York

New

15,000,-

now

a

President, Eastern Wine Corporation, New York

to

decade of decreases in the

a

LEFCORT

MARTIN

and

once

brandy

ments of grape

table wine; however, it is not taxed

Shortly after repeal of prohibition,

centage of total United

throughout all

the

the mistake of accepting the principle of a special cham¬

ening of the market for table wines, which only in the
last several years has begun to grow toward the
per¬

weakness

of

special Cham¬

table wine.

of sales of all American table wines is threatened. Weak¬

by
growing.

attention

pagne' Excise Tax.

(highest priced) wines.
Therefore, if the sale of American premium priced
table wines is supplanted by foreign
wines, the structure

reflected

our 175th anniversary of producing and
Apple Jack, we are having somewhat of a
we had been qualifying our product as
Brandy since 1935, we are now labeling it
Laird's Apple Jack.
We are going
our

ma¬

a

LAIRD, Jr.

year,

selling
revival.

now.

opportunity to draw the

tion's wine is keyed to its finest

unfailingly

sec¬

E.

President, Laird & Co., Scobeyville, N. J.
This

of the GOLD-SEAL-Urbana

the terrible unfairness of the

relatively small percentage of premium priced wines
at the top of the pyramid be maintained in ratio to
sales in other price ranges, since the prestige of a na¬

grapes

d

JOHN

time.

on

the

has absorbed from 40%° to 60% of all
harvested, and a weakened wine industry is

as

They represent

21-year-and-over

Wine production

eries will face.

Wine Company are
already ahead
year's. Our new Christmas packages have been
enthusiastically accepted by our distributors. Our pack¬
ing department is on full overtime schedule in order to

country, sale of wines is pyramidal with per¬
centage of sales decreasing as the price increases from
the base to the apex. It is most important that sales of

industry.
In nearly every one of the last 15
years, grapes have
brought the greatest monetary return of any crop in
California, the leading agricultural State in the Union.

optimism, it is a
optimism that recognizes the problems of in¬
tensified competition and higher costs that all brew¬

of last

any

States wine sales necessary for
permanent stability in a wine industry, jeopardizes the
entire industry, and, of course, weakens its
Sherry,
aperitif and dessert wine segments as well as the

14% over the same period for the preceding
The coming year should see continued increase
in Falstaff sales with strong possibilities for further ter¬
ritorial expansion.

their reputation is

and

none

Sales

Fournier

this

complex industry is
jeopardized, particularly in its table wine segment,
vitality of which is the keystone to the wine industry
of

to

still growing.

considerations than the health of the

industry

increased

jority of the American production.
Although
the New
York
State
Wine business is only a small part
of the wine sold in our country, it is
a
great influence in the premium
wine market because their quality
and flavor appeal to the American
taste.
They are even in demand in
M.

en¬

While Falstaff views the future with

high quality wine and cham¬
1955 Holiday Season with a
feeling of confidence. Every year its business
has been progressing at a very sound pace, and its gains
have been greater than the whole
wine industry's.
New York State Champagnes (fer¬
mented in the bottle) are now recog¬

California

American

established sales territories and to

our

to open new markets in the Great Lakes region.
sales for the first nine months of 1955

us

Falstaff's net

strong

Charles

The

production in
able

cautious

State

Vineyard Co.,

Rutherford, Calif.

ful

FOURNIER

industry enters the

pagne

#

DANIEL,7 Jr.

con¬

Hammondsport, N. Y.

ducer, are so optimistic about the future of cordials and

JOHN

greater

President, "Gold Seal" Urbana Wine Co., Inc.,

specialties.
\

make

can

an

If

year.

odor on the

no

it

removed,

are

made

economy.

tributions.

breath. Vodka's native advantages
will be evidenced by a rising sales curve and will re¬
main a strong public favorite.
It is with great justification that the writer and the
executive staff at Charles Jacquin et Cie, which was
formed in
1884 and is America's oldest cordial pro¬
and

national

artificial

of

h2ve been nothing

mally an

important
the present
handicaps jeopardizing its natural

the

to

Thursday, November 24,1953

...

no

particular brand. No New York retailer of
from

which

take the

is

quite

wide,

would

switch

my
a

acquaint¬
consumer

brand to another, as he is wise enough not to

one

himself, if the consumer should be
displeased with the new brand of wine purchased. Most
sensible retailers would prefer to see California pro¬
ducers
compete on a quality and
promotional basis
rather than with "bargain basement" tactics.
California

bottled
and

upon

the New York and

In
six

onus

bottle

New

brands

Jersey markets there are
wine and three locally

of

wines

fighting for domination. In Connecticut
Massachusetts, pretty much the same situation pre¬
In Maryland and Washington, D. C., local brands

vails.

dominate.

Local

brands

prevail throughout the
Continued

on

south-

page

42

Number 5484

182

Volume

Continued from page

.

.

.

The Commercial and Financial Chronicle

(2225)

ficiently potent force
of sanity to prevent

10

Critique of the N.A.M/s Report
On the Gold Standard

the

balances might

dollar

duced

to

gold

require

phe¬
happening."
Firstly, to repeat again, we were
on an
arbitrary standard and not

if

they

the

of gold. It, however,
adds the following remark: "For-,
tunately this kind of sharp prac-,
tice is not possible, for Congres¬
sional action is required to effect,
price

further devaluation."

a

This is true, but
son

"S,

-v

if for one rea¬

balances should lose

confidence in the

dollar,

our coun¬

try would be free to put an em¬

bargo

point of fact,

responsible person

a

Elliot

Mr.

In

the export of gold.

on

in

Bell,

recent

a

speech delivered before the Sav¬

of

Association

Banks

ing

New
the

York State Convention, makes

won't

"We

following

statement:

sit quietly

and let foreigners pull

country, forcing a
credit squeeze upon us, when we
want to be making credit easy."
gold out of

Price

the

less

likely to arise today because
the banks generally hold Federal
debt paper sufficient
to enable
them

obtain

to

notes

short

on

to be required short of a

as

by

find

It is

banks.

many

to

technical

not

were

due to bad credits

were

the

NAM

but

extended

surprising

rejoicing at the

fact that the banks

are

hold¬

now

would make impos¬
sible the issuance of large amounts
requirement

"The

Page 10:

on

which

gold

the

of

dilemma

(8)

On Page

should

payments

resumed is

not

at

strict

banking
bank

theory any
assets

managed

in

value

owns

its

to

liabilities,

of which is the deposit lia¬
bility to the depositors.
Over

be

standard

rising

But this

for

regime,

the

I

mint

in

gold

such

industry

has

the

without

inflation, it is in

such

opinion

my

an

nec¬

to adjust the gold value of
currency
which has under¬

essary

the

such

inflation. The wicked
thing is not the necessary adjust¬
gone

an

ment of the

the

but

rency

gold value of the

inflation

cur¬

and

de¬

preciation of the currency due
mainly to the monetizing of the
public debt.
(6) Tha report

on

Page 13 makes

the statement that the first

inflation

of

is .due

source

to

large gov¬
ernment deficits caused either by
an
emergency
such as war or
threat

of

war,

fluences.
the

employment.)
that

war

that: "On the

it

gold

a

the
report
politics will

with

the

result

to

anticipate

further reduction

of

the

requirement or
of gold payments."

reserve

suspension

To these ideas my answer is

following: In

the

case

of

a

a

the

great

On

(9)

In

point

get hold
reserves

which

are

the deposits.

"It

has

should
the

said

been

be

most

the

20

above, and it

emphasized again, that
important condition for

the proper

functioning of a money
system as a medium of exchange
is
public
confidence
that
the
money will have and will main¬
tain general acceptability."
A

which is not based
enjoy the confidence
the public for some time but
history proves that this confi¬
dence is not being maintained in
currency

gold

on

may

of

the long run, politics being what
they are.
Besides, whether the
public is conscious of it or not
one

buried at Fort Knox

(10)
makes

as

a

the gold
reserve.

On Page 20 the committee
the

"There

following remark:
wide

were

movements

in

prices up and down while the
country was on the gold standard.
.

.

.

For

requirements

as

fixed

in

(7)

On Page 18 the

makes the statement:

bank
many

debacle

bank

committee
"During the

of the early

failures

were

1930's

tech¬

nical, being caused by the inabil¬




compre¬

render

can

the

of

world.

service

to

free

the

enter¬

Fuller

offered
shares

for
of

The

&

Co.

public

Nov.

on

sale

(par 10c)

18

133,100

Colorado

company

in

None of
sale

the

oxidation

exclusive

to

with

use

of

the

its
re¬

increase

and

corrosion.

licensee

States under

a

of

the

the

are

will

12

It

in

Pooler

&

Street,

members

accrue

to

months

owned

by

Colorado.
ended

Sept.
1955, the company reported
operating revenues of $39,127,393

30,

and

net
income
of
$7,416,539,
equal, after provision of preferred
dividends, to $3.99 per common

of

Bay-

302

the

Toronto

Exchange have announced
H. McVittie, E. A.
Clarke, C. A., John W. Hicks and
that

Kenneth

Robert

S.

Newling have become

associated

the shares being
already issued and

with

them.

All

were

formerly directors of Newling &
Co. Limited.
A.

„

Waxer,

J.

Eugene

ing

Corinne A. Bake, Walter W.

Bas-

iuk, H. Clayton, John B. Macken¬
zie, Henry S. Jones, Floyd E. Hall,
Jessie
Scott
&

M.

all

Co.,

Ritchie

and

Thomas

formerly with Newling
Ltd., will be associated

with E. H. Pooler & Co.

as

account

executives.

share.

Piper, Jaffray & Hopwood
(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—Don H.

Admit Five Partners

Mathison

TOPEKA, Kans.—Beecroft, Cole
&

Co., 117

bers

of

West Sixth St.,

the

Midwest

mem¬

Stock

Ex¬

and

Jack

Dillard.

All

have

been

the

United

with

has

become

associated

Piper, Jaffray Hopwood, 115

South Seventh Street, members of
the New York and Midwest Stock

Exchanges.
Mr.
Mathison
wa3
formerly
with
Dallas
Title
&

Guaranty Co. in Dallas

and

prior

thereto with J. F. Perkins & Co.

associated with the firm for many

With Townsend, Dabney

years.

(Special to The Financial Chronicle)

With

BOSTON, MASS.

Bishop-Wells Co.

Lynch

(Special to The Financial Chronicle)

PORTLAND,

ME.

—

Rees

C.

re¬

is

the

Williams

is

now

connected

with

Bishop-Wells Company of Boston.

—

Richard S.

with
Townsend, Dabney & Tyson, 30
State Street, members of the New
York

is

now

and

connected

Boston

Stock

changes.

patent relating to

It is not

but produces

process

allo.y casing

a

plat¬

chrome

a

the treated metal

on

by the diffusion of chromium into
the surface.

plications

The company has ap¬

pending

in

the

it

has

for

field

rose

to

100.4

42.1

in

both

wars

wholesale
It
1920, and fell to

in

1932.

.

.

The

.

lesson

of

that is particularly ap¬

plicable in the present connection
is that there can be budget def¬
icits and substantial inflation with

gold standard

since

as

well

jits

of

own

coating

1914

without

but

on

an

(11) On Page 21 the committee

"Being

on

cause

speculative

the gold standard did
lead

or

excess

the depression
standard

was

to

either

the

of the 1920's

of the

or

1930's. This

evidently not

a

been engaged in
production, the com¬

has

pany

suf¬

received

such

companies

tric,

Bendix

orders

from

General Elec¬

as

Aviation,

Minneap¬

olis-Honeywell, Bell Aircraft,
General

Motors,

1

du f Pont

and

American Can.

Giving effect to this

sale

there

will be

outstanding 386,025 shares
of capital stock of 10 cents
par
value, 12,506 shares of preferred
stock and

$100,000 of debentures.

Bankers Offer Siegler

Oorp, Stock at $13
A total of

175,000 shares of The
Siegler Corp. common stock are
being offered publicly at $13 a
share, by an underwriting group
headed by William R. Staats & Co.
and

including Dominick & Dominick, Bache & Co. and Schwa-

—

not even in

nowhere in the world—

Canada, Scotland,

the United States-

or

bach er & Co.

The
back
eral

offices

tralia,
the

is

Siegler Corp., which dates
1921, maintains its gen¬

a more

gentle tasting whisky distilled"

to

and

111.,

plants

and

manufacture

space

heating

with

and

oil

addition

as

states:

not

Since

is

in

Cen-

engaged

and

sale

units

for

natural

last

gas

in
of
use

fuel.

Gift

In

California

electronics

firm.

packed-three bottles

(4/5 quarts) in the Hand¬

June,

Siegler ac¬
quired the Hallamore Mfg. Co., a
other

some

An¬

Dispatch Case at

no

extra cost.

recent

Siegler

acquisition of the
Corporation is the Holly

Manufacturing Co., a California
corporation
specializing in
the
manufacture

and sale of heating
equipment, including gas wall and

floor heaters

and

systems.

Proceeds

of

now

stock

central

from

heating'
the

sale

being

offered will
be used to pay the major portion
of the Holly purchase price.
Including the 175,000 shares in
this underwriting, stock capitali¬
zation
000

Zm€>

outstanding will be $1,000,-

4%

697,696
common

installment

shares
stock.

of

$1

;

Scanlon,

the processes, apparatus and ma¬
terials useful for the chromizing
of ferrous metals.

H.

Canada —E.

Limited,

Co.,

Stock

as

outstanding and are
Public Service Co. of
For the

a

was

proceeds from the

stock

company

at

It

ship, A. B. Wood, Frank J. Snyder,
Wynn Hugg, A.. H. Saville, Jr.,

proposes

connection

to

Co.

change, have admitted to partner¬

City to Greenburgh, N. Y., and for
the purchase of new equipment.
The company applies the chromizing treatment to metals to im¬
prove

Gas

share.
quickly oversubscribed.
per

at $2.25 per

moval of its plant from New York

sistance

Interstate

price of $57.50

com¬

proceeds from the sale

stock

public

a

Beecrofl, Cole Co.

share.

the

made

TORONTO,

Don H. Mathison With

Chromalloy Corp.

stock

mon

18

offering of 256,503 shares of com¬
mon
stock
($5
par
value)
of

Chromalloy Shares
D.

Nov.

on

<

E. H. Pooler Co.

country.

our

S. D. Fuller Offers

the

example,

price index shows 36.5 in 1890.

suspended, and (b), that there
arbitrary standard.
can be no tinkering with the gold
Constitutional Amendment.

a

greater

no

prise and to

the confidence of

element of

the public in the dollar is

standard

the

is

NAM

commercial

a democracy as we under¬
it."
it and practice it, can ap¬
Now, in the first place, the
parently not do otherwise than
suspend the operation of the gold index 100.4 in 1920 chosen by the
standard. However, for the pres¬ committee as an example is due
ervation of our monetary and po¬ to wild inflation during the war
litical system there should be an and immediately after the war.
amendment
to our Constitution Second, as I have already men¬
tioned in a previous paragraph,
providing: (a) that in times of
our
country was not on a gold
peace
the gold standard cannot

reserve

the hope that the

rest

cate,

offered

undertake

the

There

report

following remark:

stand

be

in

Offering Completed
Union Securities Corp. manager
of an investment
banking syndi¬

be

*

*

express

will

patents

Confidence

of

Page

the

makes

a

war,

Re¬

study of the monetary
problems, aiming at a restoration
of monetary order in our country
and

Newling Men Join

metals.

of full

basis of experience

reasonable

is

either

or

in¬

any

investments

to boost

name

Then

inflation

induce

ideological

in the

economy

declares

or

(For instance,

and

safeguard."

Factor

The

have gone through wild infla¬
tion
due
to
war
which
raises

occurred

banks

constitute

the counterpart of

we

have

not

do

included

are

the

of

assets

their

or

ever

prices, wages and all costs to ab¬
normal levels, which would never

requirements

is

re¬

without reducing either their loans

But when

request.

a

Re¬

statement

of fact, the banks cannot
of these so-called bank

adjusted

mining

this

that

"additional

mint price of
periodically to
changes of mining costs and oper¬
ations? I challenge the committee
to provide the evidence that the

made

submit

therefore

asked that the

be

Federal

system."

serve

But, for Heaven's sake, who has
gold

the

of

members

for

misleading because the bank

price of gold was not then ad¬
justed periodically to changes of
mining cost of operation."

ever

are

determined

true under the gold

equally

was

of

fixed price.

as¬

requirements, which
by Federal law

reserve

easily resolved by

millstones

a

May I
NAM

.

against total liabilities, there
is the additional safeguard of bank

serve

the

.

and above the balance of total

ing industry insists that it is be¬
and

Federal

should

*

S.

"In
well

all

costs

the

changed
so
as
to reduce these dangers to
a minimum.

states:

objective processes. The gold min¬
tween

of

System

18 the committee

sets

price

operation

serve

Colorado Interstate

of Federal Reserve notes.

.

ing comments

of

ing Federal debt paper in large
amounts. Besides, the gold reserve

chief

follow¬

age and abuse credit. The method

hensive
is that the bank

Now the truth

failures

equal

the

committee makes

a

notice

catastrophic run."

Regarding the price of gold,

(5)
the

gold standard. Secondly, no¬
body has ever contended that a
gold standard, even when func¬

of Federal Reserve

such amounts

Gold

of

of

depositors. This condition is much

our

The

withdrawals

the

cover

another the foreign owners;

or

of the dollar

like

to

that

government intended to raise

our

on

tioning properly, can prevent de¬
ity to secure promptly a sufficient pressions or speculative excesses
quantity of coin and paper money if the money managers misman¬

be in¬

convinced

become

to

were

these

from

nomena

A

the side

on

41

notes,
par

(J

o/af

and

value

90.4 PROOF

•

CONTINENTAL DISTILLING CORPORATION, PHILADELPHIA, PA.

Ex¬

The Commercial and Financial Chronicle

(2226)

42

Florida state legislature. In most other states along the

40

Continued from page

coast, the tax

wines is only 10 cents per gallon, ex¬
cept in Massachusetts where it is 30 cents. In the state
monopolies there is

Outlook ioi Liquor, Wine
Beer and Related Industries

to

stimulate

this

JOSEPH

moving into

up

to a figure where our labor cost, which is three

six times

on

high

as

position

a

inferior

of

American

own

consideration. It is of vital

Makier

H.

continue

will

with

will

Eastern

is very small

which to base

of

consumers

believe

superior to all

are

course,
wine field,

a

increase.

to

a

famous

Waterfill

as

a

that

New

York

wines.

We

real

a

solid

position

be

effort

to

sell

wines.

Most

East¬

dis¬

of

three of the chain restaurants could

this,

we

believe the movement would

spread.
With regard to state taxes

states

on

wine in this area,

mdst

moderate, with the exception of the state of
Georgia which charges $2 per gallon on wines made out¬
side the state, and only 5 cents
per gallon on wines

of

Kentucky bourbon
when it is reasonably

Frazier

and

Observers

they want to

high
tax on wines, as it creates more
whiskey sales. There
is need for a real educational
job to be done in the




see

had

never

There is

as

that

the

this

their

luncheons

dinners

and

companies
decided in¬

a

using wine

are

enjoyable.

more

indication that this larger use of wines has

no

approached

saturation

a

point.

On

the

contrary,

sales

indicate that an increase of 8% in wine
throughout the United States may be anticipated

with

confidence.

our

the

surveys

installation

At

of

Pleasant

additional

Valley
facilities

that additional amount of sales
been

proposed,

the

present

eliminated

or
reduced,
greater increase.

we

as

a

to

year

in

gallon mark for 1955.
largest consumption
As

the

for

basic

excessive

sales

show

a

Speaking specifically of prospects for the coming year
our company, we look forward without misgiving to a
year of wider acceptance, of all wines in which as an
industry leader, Great Western will naturally share. Our

for

advertising and distribution is being planned to take
care of this anticipated substantial increase. Our produc¬
tion facilities are also being enlarged so we may ade¬
quately supply the requiremehts of our customers. This
should, and we believe will, result in increased profits
for the Pleasant Valley Wine Company. We see no rea¬
son why other producers of
recognized brands of wine
should not share in our feeling of optimism for t|ie
coming year.

aggressive

more

make

the

1955

industry continues

which

tax

trend

second

puts

from

price of

the

fight

to

resulting

ability to purchase of too

a
an

whiskey

millions of

many

consumers.

This is reflected in the fact that
total

adult

population

although 65% of the

classified

"regular"

as

three times

least

leaves

of

consumers

those

who

of female

consumers,

the male
who

those who

or

consume

on

an

92%

of

This

only

of

average

Crowell-Collier survey, 82.3%

a

alcoholic

serve

$200

or

one

beverages

against

as

23.5% of the families with income of $40

whiskey

Consequently,

consumers

capita

per

of the

usually

over

high tax factor is primarily responsible

1942,

are

drink

;

According to

total of

and

consumers

homes with weekly incomes of

occasionally

only

occasional drinkers.

are

week.

a

spirits,

consumers

week.

a

73%

distilled

consume

27% of the male and only 8%

2.52 gallons

generally should

be

share of

a

since

consumption

excise

the

above

If, as has
excise tax is

minimum.

burdensome

will

industry

competing for

This will

year

future, the

declining

gallons last

care

the

1946 when consumption
registered the all-time peak of 230 million gallons.

of

take

"

-.

in

This will probably lift industry sales to the 200 million

planning

are

Lord

decan¬

ends.

season

liquor

gift dollar because of its
advertising and promotion.

most other

the number of families which

in

make

to

well

as

for

"first"

a

consumer

the female

industrv, that there has been

demand

Calvert gin

gin special bottle, and also

a

before the

believe

successful

more

the

the
the

and

gin decanter is

bids fair to be sold out

at

MAY

were

the 1955 gift packages
Although
the
bulk
of
and industrial buying has

•

frosted

industry which

or

only

a

week.

for

the

The

small

in the low-income category.
consumption

only

was

1.18

against 1.26 gallons in 1950 and 1951,

year as

in 1946, 2.10 gallons in 1945, 2.19 gallons in

1.67 gallons in 1937 after

repeal, 2.07 gallons in

1870, 2.86 gallons in 1810 and 2.24 gallons in 1850.
Because of the excessive excise tax

consumption

has

lagged

behind

the

expansion.! Between 1947 and 1954,
uct

increased

1947 value of

13.4%;

up

distilled spirits,

on

economic

general

national prod¬

gross

53.1%; disposable income adjusted to the
the dollar

employment

was

24.4%; population

up

increased

5.5%,

was

distilled

but

spirits consumption increased only 2.3%.
In

those

keep

a

seven

failure

years,

distilled

of

spirits

to

with real disposable income has cost the in¬

pace

dustry

total of 188 million gallons, almost

year's total

a

business lost in the past seven years and, because of an
excessive tax rate, an equivalent amount of revenue for

RUDY A.

MORITZ

government has been lost.

President, Drewrys Limited, U. S. A., Inc.,
South Bend,

It

Indiana

We at Drewrys look forward with confidence to

1956.

The beer industry as a whole should enjoy a year of

improved
beer

sales volume.

consuming

of beer

as

centage of

a

The

age—the

increase

consistent

established,

in

population of

wider

acceptance

purchasers of beer—aggressive ad¬

or

people

that

prohibitory laws.

it, they buy legal liquor; if not, they
chase

fore,

moonshine.

tripled

Moonshine

since

10,500,000 gallons,

1947

as

continue
If they
are

it

was

drink

afford

likely to

consumption

when

to

can

has,

more

than

try's and society's prime problem.

ever

estimated

industry looks forward to 1956 when the 1.50
tax levied Nov. 1,

convenience

and

eye

appeal—all

should

From the

ing the past

viewpoint of
year we

our company, we

year,

feel that dur¬

have further solidified

our

both in established and embryo markets within
mary

As

distribution
a

result,

position
our

pri¬

sult

in

have

increased

been
sales

but the industry intends to make

organization

and

consumer

strengthened; which should
of

our

products.

re¬

gallon

a

as

it did

last

strong bid for

lower tax.
After

all, since 1933, there have been

in excise rates
to 10.50

area.

distributor

a

acceptance

a

a

1951, is scheduled to terminate.

Congress may postpone its termination

be

be

year.

today the indus¬

retailer levels—constant improvement in packaging for
consumer

to

For that reason, the

vertising and sales efforts at brewery, wholesaler and

advantageously reflected in beer sales.

pur¬

there¬

against 31 million gallons last

Moonshining remains

beverage of moderation—the growing per¬

women as

seems

regardless of tax

are

made in the state. One firm appears to do most of the
business in this state. In Florida the tax on dessert wine
is $1.40 per gallon, which has
greatly restricted the sale
of it. The writer has been told
frankly by several wine
and liquor wholesalers that

Calvert

drink

Northeast, unfortunately,

by the glass
bottles, at prices in keeping with the price of

convinced

brand

Evidently, the public

in

to convince two or three restaurants to sell

or

aggressive

gift decanters

new

of

holiday business.

The

means

crease

State

wine sales with fantastic prices per bottle. It
appears that most restaurateurs prefer to sell cocktails.
The only solution the writer can see to this
problem is

and small

increase.

old

of Great Western sales

know,

courage

their food. If two

making

are

1955

During the past year, it was most evident from records
in the wine

books

indeed. Very few restaurants in the

make

as

profits

colorful

already outrunning supply.
The Lord Calvert
is being called "the hottest package" of the

are

decanter

President, Pleasant Valley Wine Co., Rheims, N. Y.

,

Restaurant wine sales in the

area

We

HARRY A.

this is not true, particularly in the dessert
but good promotion and Avoidance of Price

very poor

1956

during which Waterfill

pack¬

new

and

the coming season.
promotions budgets

and

holiday
only begun,

Resnik

That

indeed, and only

the market.

ern

to

ters

gen¬

priced and consistently advertised.

business. The most

California

Cutting Tactics has built for them

are

look forward

we

another year

sales continue to

buy

such

popular premium wines in the Eastern areas are those
produced in the Finger Lakes district of New York
State, which have developed a reputation for quality,
particularly in their dry wines, to an impressive extent.
wines

business

of

gigantic rivals, we are very much encouraged by
the position of Waterfill and Frazier Kentucky
is being strengthened in market after market

our

as

cheap imports. The demand for

area

all-time

before have been allocated.

Bourbon

enough

Most

level

first

Calvert

new

increase

an

Tubie

the way

importance to all segments

among the few "Cognoscenti" who read all the
wine and make it a hobby. There are not
on

setting

Although this is an age when the independent pro¬
in many industries finds it difficult to compete

vineyards, the

on

people

is

now

much

because of the flood of

of these

Company

Our sales show

ducer

to

With regard to California premium wines, these, un¬
fortunately, are suffering even more than other wines

••

business

marketed.

nation¬

our

for stronger advertising and sales promotion
activities in all our principal markets.
plans

industry.

them in the Eastern

of

and Frazier sales volume and

even

our

the

unique

contrived

for

ad

ever

Calvert's

inventory situation

continuation

high

erally,
Josepn

to

foreign label very frequently swings the sale. The entire
industry should give this matter serious and immediate
of the wine

the

the

of

enforced.

those

to

its

promotion

advertising
than

the

of
50%
over
the
preceding year.
Shipments are now at the highest
point in the 145-year history of this
independent Kentucky distillery.
As we anticipate the continuation

people in the wine business know, the aver¬
judges quality by the label on the bottle,
in many cases these imported products are

while

healthier

Distillery

age consumer

and

of

have

new

Larger

industry is gradually
most companies can ex¬

where

records.

strong effort should be made by the responsible organi¬
zations of the industry to see that these provisions now
As most

because

ages,

For the third year in a row, the
sales volume of Waterfill and Frazier

foreign wines. Many European countries, particularly
Italy and France, have a surplus disposal program on
wines, similar to our own on wheat, cotton, etc., whereby
the government buys the surplus and exports it at a loss.
Our tariff law has anti-dumping provisions in it. A

are

of

,

distillers

prosperity should make the
coming year one of the best the in¬
dustry has had for some time;

ducing countries, is adequately compensated for, all dry
wine sales in the East will eventually be absorbed by

in the law

MAKLER

that in most European wine pro¬

as

months

Christ¬
packaging and decanters."
Impelled
by
keen
competition,

the liquor

year,

and

these European wines are brought

that the tariffs

in the last four

Moreover, Calvert's gift
will
probably register an

wide

to $1.50 range which create real competition
for California wines. Unless something is done by the
see

done

high

H.

The

$1.25

Board

.■

..

year.

pect improved sales and earnings in 1956.

some

and Wine Advisory

RESNIK

New York City

Because of the depletion of excessive inventories dur¬

ing the current

Fiasche

Wine Institute

sales

liquor industry expects to get a larger
share of the gift dollar this coming Holiday
Season,
1955 will
be the second best year consumption-wise
since 1946. Between 30 to 40% of the year's business is

Bardstown, Ky.

wines inundating

California

in

the

President, Waterfill and Frazier Distillery Company

this area. Italian Chianti, in
straw-covered bottle, are being
advertised to the consumer as low as 79 cents a quart

the

increase

mas

ately in New York City to hold their position by means
of cut prices, big discounts, etc., etc.
One
of
the
great dangers which face California
wineries in Eastern markets, is the flood of cheap im¬

profit on imported wine selling at less than $1
per bottle. While there are very few Ports and Sherries
available at less than $1 a bottle, there are many in

10%

a

Vice-President, Calvert Distillers Company,

progress.

build their own brands and in
many areas they are doing a great deal more to advertise
and promote them than any California producer. In the
New York area particularly, the writer's Chateau Martin
brand was the first American wine to be advertised
extensively following Repeal, and the methods we de¬
veloped of using radio spot advertising, subway cards,
and posters, etc., have been widely copied by California
bottlers. The top California brands are fighting desper¬

gallon, which is lower than the red

TUBIE

Because

bottlers prefer to

of any advertised California brand. French
Sauterne, Claret, and Burgundy are being offered to
retailers at $6.50 per case, giving the retailer a hand¬

of

volume.

There are great possibilities for increased wine con¬
sumption in the Eastern area. We have there a Cosmo¬

there is no reason why wine, consumption
not increase steadily year by year. Proper ad¬
vertising and promotion by the California Wine Ad¬
visory Board, the largest factor in this field, is necessary

California firms to get local bottlers
to use the label of the California producer, have not
been successful except in rare instances. Most of the

dry wines

advertising budgets for 1956 have been

expectancy

should

Efforts of certain

and less than $2 per

an

Executive

promoted,

hoods.

the traditional

on

wine but the

the

on

population which has its roots in European
drinking countries. If good quality wines can be
put within their reach at reasonable prices and properly

pre-eminence in the states along the Atlantic seaboard
as
they seem to have in the middle western states,
where in several states of the southern tier I under¬
stand they outsell all other wines put together. Along
the Atlantic seaboard, a New York City bottled Kosher
wine is the biggest seller, whereas in the states across
the Alleghenys a Chicago bottled Kosher wine outsells
all others. Even in New York City, with its very large
Jewish population, Kosher wines account for less than
5% of the total wine volume. Its biggest sale, except for
the Passover holidays, is not usually in Jewish neighbor¬

ported

tax

wine

ticularly as several of the states restrict the sale of wines
above 14% alcohol to either their state or county stores.
With regard to Kosher wines, these do not have such

local

direct

no

Our sales and
based

state gets its revenue from the markup in its own oper¬
ated retail stores, such as 58% in Pennsylvania.

politan

outsell California bottle wines, par¬

where they far

east

on

Thursday, November 24,1955

...

a

totaling 854% from 1.10

seven
a

increases

gallon in 1933

gallon in 1951.

The tax, like Topsy, has "just growed"; but it seems
to have

outgrown its usefulness

producer.

as

a

maximum

revenue
,

j

Volume

132

Number 5484

LEWIS

S.

.

.

The Commercial and Financial Chronicle

.

ROSENSTIEL

Chairman

and

a

industry

United

the

of

the

of

sage

volume within

significant developments for the distilled spirits
in

States

Eberharter

Bill

market

the

for

goods)

and

1956

would

removing

(thus

date of the Federal excise tax

until there is

a

be

pas¬

the

due

consumer

reduc¬

a

Federal

Governments

collect

in

not

cf

$7 per gallon, compared
$10.50 presently levied by the

excess

with

is

member

no

trade who

does not agree

has to be done.
the

to

the

U.

trade

S.

something

Bill

stems

from

Spirits Institute,
association

have

to

companies

some

them.

The

members who

some

this category

but

be¬

Institute

in

paying membership would quickly enable
believe

should

Congress

the

pass

to

one

ascer¬

Eberharter

introduced last session. United States distillers
in

a

finance

to

sense

the

for excise taxes,

sums

are

Bill

forced

Government, advancing huge

for long periods—sometimes years
while foreign distillers are not.

—before reimbursement,

all

appre¬

ciation cf wine and unprecedented high personal

income
hold forth the promise of new records in retail spending
for wine. However, in spite of pre¬
sales

dicted

gains, the highly com¬
petitive struggle for market suprem¬
acy
among
some
of
the
larger
advertised brands will be a major
economic

force

in

for

contest

without

be

not

brand
its

casualties

will

among

the weaker companies. If the past is

indication, deals and below cost

any

sales will not be uncommon as many

companies

situation

This
sorest

Within

age.

continues

be

to

the

eventual adjustment of

an

this

condition, the outlook
segments of the industry will then look good,

for all
indeed.

Planning within our own particular company is based
upon
the premise of a growing wine market. We re¬
cently completed an expansion of our facilities in antic¬
ipation of this growth. Most of our distributors and
bottlers

well

are

and should

in their respective markets

entrenched

share in the overall future

consumption. In order to further insure
for

the

future,

have

we

doing

been

increase
a

in wine

strong position

research

in

con¬

wine tastes and preferences. For many years our

sumer

laboratory
varieties

has

of

been

New

experimenting
State

York

with

believe

we

recently
the

developed.

ticular

new

merchandised

volume

sale

as

few

next

years,

a

few years.

a

substantial

Like

so

portion of

many

R.

sales

by

probably show7

J.

a

continue

to

be

consumed

public devotes

more

a

result is

President,

Fuhrmann

&

Schmidt

sales

the brewing industry
fair increase over 1954.
in

due

some

volume

for

for

1955

will

part to the incidence of

1958.

which

a

prevailed

and continue under

one

name;

Fuhrmann

Brewing

Shamokin, Pennsylvania, has maintained
a

started

and

and

cartons

of the F
While

in

the

&

completed.

into

came

S

pal

least

equal

the

our

How¬

With

own

our

change

field

use,

was

being made on packages and
was conducted by specialists

as
a
result of their findings, many
methods of handling and marketing the

F & S line have been made.

We, here at Fuhrmann and Schmidt, feel that with

is

token,

in the

look

the

princi¬
metropolitan area

one

world.

our

City,

one

R.

J.

Schaefer

of the richest and, by the

of the most highly competitive markets

Just

as

so our company




1955

an¬

of

sales

about

of

the

domestic

erated

by the

France and

five
with

Italy.

The growth

year.

only 265,000 gallons, compared
1,265,000.
Production here

was

imports

average

this

industry was greatly accel¬
which sharply reduced imports from
Average domestic production for the

1936-40

years,

here

vermouth

war

of

zoomed to

an annual average of
2,133,000 gallons in the
period, while imports dropped to 580,000 gallons
a
year.
While imports rebounded after the war,
they
have never again caught
up with domestic output.

1941-46

There

several

are

in

crease

the

for

reasons

tremendous

in¬

vermouth

sales, both domestic and foreign,
in the past 20
years, but it is impossible to pin-point
the importance of each factor.

Certainly, the increased popularity of cocktails: the
Martini, Vodka Martini and Manhattan have accounted
for a large proportion of this increase.
It is likely that
first

two

drinks

have

contributed

to

more

figures show

our

the

definite

a

vermouth

took

a

sales, while dry
Today these percentages

only 40%.

up

reversed.

are

Another factor that has been important in the
growth
industry has been the increasing popu¬
larity of vermouth drunk for its own sake alone.

of the vermouth

people
the

drink vermouth

now

rocks,

or

as

as

Many
aperitif, straight, on

an

mixture of sweet and dry.
also has its adherents.

a

Vermouth

and soda after meals

A small portion of the
increase may be attributed
to the growing use of vermouth in
cooking and in salad

dressings.
All

in

all,

produced by
is most

the

outlook for the Tribuno
firm and for the industry

our

Vermouths
as

a

whole

encouraging.
FRANZ

W.

SICHEL

;

President, Fromm and Sichel, Inc., New York City
Sole Distributors of the Wines and
Brandy of

j

The Christian Brothers

The drinking habits of the American
consumer, viewed
over a span of 20
years, are not stagnant.
They change
in accordance with the consumer's likes and
dislikes.

Whereas

changes

alcoholic

beverage

in

brands

within

the

same

type

of

frequent and
sometimes rapid, changes of type ac¬
ceptance occur on a scale so slow
the

average

in

the

are

in¬

not

consumer,

industry's problems,

will hardly notice them.

When, after Prohibition, wines and
O.

HENRY

SONNEMAN

Managing Director, Meier's Wine Cellars, Inc.,
Silverton

(Cincinnati 36), Ohio

liquor

wine

conclude 22 years of
itself following the
prohibition. During these years it has made
tremendous progress in adopting modern methods of
production and up - to - the - minute
merchandising ideas. As we review
these years we realize that the great
emphasis has always been on the
percentage of alcohol in wines; and
initial

industry is
efforts

to

about to

re-establish

of

consumer

confused state and

has been left

a

is not

enjoying

of

is—and

entire

aware

must be—the

taste

as

more

they

of American

families.

were

of

the

Second

of

years

World

reorientation.

Whiskey and gin during those
continued

place
the

war

able in

to

hold

first

and

they still do today.

as

years,

years

sfecond

During
Franz

liquors became avail¬

short supply.

Due to

an

W.

Sichel

in¬

creasing shortage of whiskey, other types of liquor
consumed in the United States to

were

extent

which, with¬
out benefit of the war, would not have been accepted.
Brandy was among them.
an

years gave us an

indication whether.
After the

war,

fell back but started

times what it used to be in 1948 and further

con¬
Henry O. Sonneman

just beginning to
scratch the surface of a very great potential, and that
during the years to come our industry will have the
leading part in adding to the happiness and enjoyment
feels

outbreak

War,

to pick
and has during the last eight years progressed
strongly and continuously, much stronger than, for in¬
stance, whiskey.
Brandy consumption today is 2l/z

and

company

to

up,

geographical locations of the United States, they will
develop definite preferences. As leisurely living becomes
more and more popular, wines too will find their place.
Already, table wines are becoming a great part of every
family meal.
Our

the

brandy consumption first

goal of

becoming
and

free

had

the acceptance of brandy would continue.

industry.
are

for

again

consumer

back to what he really
years from 1933 to 1941,

The

Only the postwar

with

wines

offered

were

sale, the American
find his way

liked.

enjoy the various
types of wines—especially wines of
definite quality from the different

operations

our

seaboard:

of

similar increase

a

terested

tinue to

sales

indicate

usual

2,000,000 gallons, against aciual im¬
ports of 1,864,000 in 1954.
We can

inuuno

L..

for

that

"wine-conscious"

Schaefer is America's oldest lager
is the oldest brewing company op¬
erating in New York, where we have been something of

beer,

our

We must admit that "Mr. and Mrs.

industry

an

3,800,000 gallons,
compared
with 3,546,000
in
1954.
Applying the 8% annual gain to the
1955 figures would give the 4,000,000plus total projected above.
Sales of imported vermouths were
also higher in 1955, totalling about

planning to do, that there will be
continuous place for us in this industry.
are

we

over

would

mouths

facilities and the hard-punching merchandising and sell¬

ing job that

reached

American-made sweet and dry ver¬

tying in complete identity

and

our

Consumer"

and

company's

of Greater New York
same

This

our

market research

a

changes in

the

probably
1955 figure.

We confine

Eastern

outlet

constant pace

products.

this

labeling,

sumer

the highest volume of business in its
to the

of

industry. Over the past few years,
million dollar expansion and modernization
program

qualities

performance during 1955, I am glad
to say
that Schaefer has achieved
history.

a

Company

brewery in the
finest physical shape of any brewery in the country, a
program was launched to improve our packages. Experts
in
the field
of labeling and packaging designs were
called in to analyze our packages and after more than a
year of intensive study and research, a new label was
created and a completely new design for all packages

in

current consumption rate
of potential market in¬

exceed

for

Some

with the trend in the

was

and

year

8%

total

the seventh suc¬
showed a gain of

the type of vermouth sold
today as compared
with pre-war and early war sales.
Formerly sweet ver¬
mouth accounted for about 60% of all

Co.,

but, the greatest casualties

Schmidt

and

the

for

shift in

Brewing

practice in all departments, the modern, high speed pro¬
duction methods used by the most successful breweries.
The

continua¬

a

1954, the
gain recently.

nual

the

will be from the breweries which have failed to put into

the American

surveys

dicate that total sales in

As

at¬

be
absorbed by competitors for the
purpose
of
putting them out of business; others will form a merger

meals. To educate the American con¬

will

and

to

will

predict with certainty the industry's

at

time

going to continue to fail.

are

of the wonderful taste and beneficial

should

more

Shamokin, Pa.

Many breweries

advent

in

the

and

SCHMIDT

summer. Weather being
determining the rate of
consumption, it is difficult to

ever,

about

that

high

growth of the wine because

FRANK

The

ing the past

and

moderation, they
increasing volume

in

con¬

SCIIAEFER

protracted period of hot dry weather
throughout most of the country dur¬

total

cf

potential to our
industry.
In
in leisure time, growing with
substantial factor tending to contribute

in hobbies, in sports
participation
tendance, and in social and community life.

our

President, F. & M. Schaefer Brewing Co., Brooklyn, N. Y.

beer

number

increase

the American

other indus¬

products specifically designed to satisfy
tastes, hold the key to future growth.

factor

greater

a

relaxation

their

a

cessive

junn

volume

the

decade, is

should

under

Rose," New York State

new

This

the

to believe that sales of "Wild Irish Rose"

us

within

Total

all-time

principally in champagne production. Present

wine will alone account for

sumer

wine

its distinctive taste and flavor to the par¬
varieties of grapes employed which heretofore

results lead

tries,

is

Irish

a

owes

used

were

wine

This

"Richard's Wild

name

wine. It

grapes

work has borne fruit in

our

indicated

of

increased consumption of our product. Beer and ale
have always been associated with relaxation and leisure
time
enjoyment.
As
beverages of

numerous

attempting to for¬
mulate a wine which would most appeal to the Ameri¬
can
palate. After the expenditure of much time and
effort

lot

a

people annually will reach the age of 21 than during any
previous time in our history. The constantly broaden¬
ing population base will obviously bring an unprec¬

problem of the wine industry.

Assuming

Sands

Marvin

position.

for

maneuver

closing of

tion indicate that per capita
consumption of our product
is highest among persons between 21 and 45
years of

Furthermore, this
domination

the

7

industry looks for

and

the

restricting profits

for many concerns.

been

several years.

to

Prospects for total sales in the wine industry appear

before. Increasing consumer

has

last

j

steady growth it has enjoyed every
should cross the 4,000,000-gallon
for the first time in history. While final 1955 sales
figures are not yet available, it is

a

narrowing profit factor, the outlook for
the brewing industry appears to me to be
very bright.
Surveys made by the United States Brewers Founda¬

each

ever

the

TRIBUNO

of the

1948

most part for

elements

over

addition,

Canandaigua Industries Co., Inc., Canandaigua, N. Y.

brighter than

the

these

edented

SANDS

MARVIN

pay

1956

since

same

Despite

tain whose policies are followed.
I

the

product have to

our

breweries
L. S. Rosensliel

analysis of the

an

competitive

economy.
Con¬
high rate of excise
tax, more appropriately applicable to a luxury than to
an article of general
consumption widely used by those
least able to pay luxury taxes.

of

does

not

are

increasingly

an

of

tion in

must

mostly paid for by the Canadian
Big
Two — Seagram
and
Hiram
Walker—and

The domestic vermouth

mark

pf

L.

New York City

oper¬

on-premise consumption,
today be packaged, distributed and marketed to a
large extent for off-premise retail sale, through a wide
variety of point-of-sale channels. The resultant effect

dominated

and

holden

which includes brewers

ment

tributed for

so-

a

JOHN

President, Vermouth Industries of America, Inc.,

time, rising costs are producing narrow
profit margins within the industry itself. In addition to
increased production costs, changing patterns of
public
consumption habits have brought about higher costs of
packaging, distribution and merchandising.
A product which was once bulk
packaged and dis¬

So far the opposition

Eberharter

Distilled

called

the

of

ac¬

year

At

Federal Government alone.
There

our

bracket

a

The traditional

enjoys in this territory is
ability to maintain a sales

product

our

ating on a national basis.
Competition in our industry continues to be increas¬
ingly keen. This is naturally due in part to the develop¬
sumers

tion of taxes to where tne State and

than 113 years.

more

which

important factor in

an

Schenley Industries, Inc., New York City
Most

landmark for

ceptance

President,

43

(2227)

that

we

are

gains

can

be expected.
increase

of

consumption

Within the brandy field,

both

the

American

we

have

and

imported
brandies. If I can make the statement that the brandy of
The Christian Brothers, which is sold through my firm,
outsells the total of all French brandies imported to the
seen

U.

an

S., then we must recognize that this is due primarily
brandy has the con¬

to the fact that the American type

sumer's

acceptance, and not because imported brandies

bad.

Some

imported brandies are good, some in¬
do not meet the requirements of the
American market. The American brandy is made to the

are

different,

some

Continued

on

page

44

44

The Commercial and Financial Chronicle

(2228)

have gained considerably more than the imported dessert

Continued from page 43

Outlook for Liquor, Wine
Beer and Related Industries

fashions

to the American

American

American

the consumer's likes is responsible for this

alcoholic

throughout the year

and with

of

Sweet

wines is

disregard for season or

a

and

Vermouth

field

of

They

similar de¬

too, we have seen

wines,

velopments of change over the years. Both domestic and
imported wines have been growing very much, but the
total of imported wines amounts to about only 5% of
total wine consumption in the United States, as against
more than 10% before Prohibition.
Imported table wines

cannot

with

occur

brandy

years, can

research

brains and ingenuity

use our

problem which affects

Another

from time to time is the ques¬

us

relationship

the

of

tion

between

corporate ownership and manage¬
should

far

How

ment.

in

go

we

customers on how to
vote in proxy fights? What is the
extent of our responsibility
for
advising

our

good manage¬
companies whose
have sold to the

the continuance of

in

ment

those

securities

we

has

stockholder

the

voice

xvhat

of

question

whole

The

public?

controlling the

and should have in

modern big cor¬
porations is an unanswered one. It
will take a lot of creative thought
of

destiny

our

part to get the solution t«
all these problems.
Another problem which merits
on

your

attention is the question of

your

rising

of

effect

the

costs

our

on

profits.
As you well know,
competitive bidding and competi¬
tion from
direct private place¬

net

have

ments

Competition from

spreads.

ing

firms

non-member

in

kets

making

mar¬

securities places

listed

effective

underwrit¬

down

cut

ceiling

Stock

on

instructors

So you can't
offset rising costs by raising the
price you get for your services as
change commissions.

industries do.

some

Too

people in our busi¬
ness lose sight of
the importance
of keeping an eye on net profits.
Partly this is because we are so
many

in

backward

our

that it is only by

cost accounting
intuition that we

tell what it is

can

profitable to do

and what it is not.

velop

good

a

analysis,

If you can de¬

system

you

of

expense

control

can

costs.

This may be by

eliminating waste
dropping altogether activ¬
ities no longer profitable.
by

or

Securities Business Needs

a

Mass Market

Now

let's
stop talking about
problems and look at some of the

opportunities

by

money

and

new

better

make

will

know

what

of

service.

said that if you

better

more

more

customers

our

kinds

once

people

will

making

giving

Henry Ford
give

for

service,

to

do

proved his statement.

you

than you

money

with.

He

With all his

market for se¬

mass

a

of it indirectly

done already, most

institutions like life in¬
surance companies, savings banks,
and pension funds.
But it is not
enough. Keith Funston, President
through

of the New York Stock

billion

will

Exchange,
1965 $875
needed by U. S.

that

estimated

has

be

by

ex¬

ternally by the sale of securities.
"Even if we perpetuate the un¬

riod,

debt

three-to-one

sound

ratio of the

equity

post-World War Ii

pe¬

equity securities worth
This

new

$40 billion will be required.
is

we

will

ratio

have

of

about
How

is

cation.
the

This is

average

an

billion

a

going to do this?

we

job of

mass

to us to edu¬

up

cate them to the

desirability of in¬
vesting in equity securities. It is
which

task

a

deal

of

ingenuity
in

the

will

effort,
on

take

a

great

imagination,

and

the part of all of

securities

business.

economic
must

literacy of the country
improved through teach¬

be

ing in the
sities,
and

schools

univer¬

and

through

advertising
and publicity. Although the task
may seem gigantic, we have al¬
ready made a good start toward
the goal of making
everyone a
capitalist.
Your

efforts

own

in

talking to

all sorts of groups about our busi¬
ness have
been most effective in

"spreading the word."
As

which

revolution¬

were

at the time.

ary

The first, which
talked about, was

has

everyone

production.

mass

which

has

not

recognized,
tion.

The

The

been

was

in

so

mass

second,
generally

consump¬

five-dollar-a-day

he announced to his
ers

to

1914

made

wage

hourly work¬

it

possible

for

him to sell the output of his

mass

production.

gone

hand in hand
made

it

States,

The
ever

possible
with 6%

have

two

since and have

for
of

the
the

United

formed

of you may know, we
Joint Committee on Ed¬

a

ucation

in

1947.

is

It

Investment

people

and, finance
Over

of them

its

on

1914 with

developing

faced

the

now

a mass mar¬

who




business

our

at

the

was

of economics

universities.

years, we have had 64
here for three-week vis¬

fellowships.

Dr.

Sheppard

arranges their schedules and opens

in

was

of

the

doors

mation

Ford

about

through the teachers

population, to produce 50% of the
Henry

Association,
Stock Exchange

that the most effective
way to at¬
tack
the
question of educating

world's
As

Bankers

pursue

for

wants

so

that

they

their search for infor¬

in

have

them

their
a

own

way.

We

professor from Yale
to

visit

us

for

a

year

depends

on

steps forward, and

learned

own

better

suited,

better

bound

trained,

people.
in

result

This

higher

a

professional

customers

our

better

directed
to

of

degree

all

these

lasting

One

efforts

have

to

are

however, we must
things to insure that
product we sell lives up to
success,

several

do
the

the claims

would

be

make for it.

we

There

point in everyone's
becoming capitalists if, by so do¬
ing, they lost their shirts.
The
no

product

we

advice.

It

the

if

have
is

he

is

all

the

facts.

Even

professional, too many
confuse him.
What he

a

may

needs

to sell is good
enough to give

not

investor

facts

just to make

do there.

we

If

about

is

most

sound

from

well-trained

enced

securities

judgment

and

experi¬

men.

of

service

than

was

to

ever

the

Problem
If

of

we

trained

ring doorbells"

trained
than

people
have

we

Every firm in

developing

recruiting,

training program.
have done so, and
reasons,

ones

who

the

business

But

too

I

way,

another
that

ing
by

of

a

and

firms

few

for sound busi¬
They
the

the

in

ahead.

years

have

the

are

leaders

not.

In

a

pleased, but in
disturbed, to note

very

25%

of the

100

mem¬

Association attend¬
lectures are employed

your

these

firm.

my

job,

in

way,

about

bers

A

be

many
am

selection

too.

will

heretofore.

business should

on

ness

business

our

had

our

concentrate
sound

in

If

we

to do

are

our

should be thousands, not

you

are

have to know how to
and

to retain what you read.

know what

a

and

convincingly

your

ideas to be followed by

it

have

to

will

you

and

must,

you

to

able

kind

of

much

salesman.
he

To

be

must

petent

for

departments,

This

effective,

by

a

com¬

means

top-

and

well

as

There

learn from
sales

most

be

research

agement.

individual

supported

team.

flight

the

sales

as

is

buying

lot

a

We

up

motion.

I believe, in the trans¬
ition period to a new concept of
life.

A

aim

should

You

might say we are en¬
tering the "Age of the Human
Being." Man has spent millions of

of the

covery

means

turn fire

to

into mechanical energy. We have
extended our physical power to
undreamed of limits with the dis¬

of nuclear fission,

covery

and

the

cept

of

fusion,
development of the con¬

automation.

All

of

these

salesmen

twice

ways

corporate

What

trends

rities

to

them

investment

in

do to keep

we

can

financial

new

the

the

useful

make

we

to

govern¬

ready market at time

a

of issue?

officers

the

abreast

kinds

of

of

secu¬

being

the possibilities of
physical surroundings
are
forcing on us the necessity of
learning to get along with one an¬

available

fortunes

with

so

us

it
or

to

as

sound

whether

business for

individually

tively.

As

struggle
more

kinds

of

may

not?

time

intellectual

and

collec¬

is

the

survival,

for

the

side

we

spiritual
of

life.

have

sive

and
The

and

holes

is

surance
will

if

we

the

banks

companies.

need

trained

economy.

in

more

field

to

be

The

so

the

percentage

of

dry

whole

question

financ¬

of

ing small business and providing
capital for new ventures has been,
discussed

widely

There

years.

confused

in the last few

is

great

a

deal

of

thinking about the role-

of the investment banker in these

fields.

Let's

them and

continue
how

see

contribution.

To

to

we

examine-

make

can

save

a

time,.

your

I refer you to a talk

given by my
brother at the Institute of Invest¬
ment

Banking last spring. I havecopies here if you want to read it.
With the end of World
the

United

Britain
tion

the

equipped
Our

States
the

as

of

leading banker

in

between

great

tribute

again
new

what

na¬

well

in

wars

the-

was

no-

ability but
some experi¬

our

us

not

trained

approach

field

the

have given
in

How

this

to

II,.

play that role?

are we to

years

ence

War

replaced Great

world.

record

to

do.

Here

and

manpower

needed.

are

a.

All too-

often the solution to problems in¬

volving the development of other
countries

other
of

is

"Let

careless

economic
have

them

million."

$100

been

not

an¬

result

a

on

un¬

millions

many

wasted.

is

need

have

As

expenditures

projects,

Many

times

for

capital, but
for
know-how—technical, man¬
agerial, and financial.
Would it
not be better to work with

in

other

ship

countries

on

people-

partner¬

a

basis,

each supplying what
equipped to contribute?'

he is best

Here, too, there must be
tude of "How

than "What

I

can

atti¬

an

help?" rather

I get out of

can

you?""
being ex¬
getting smarter,,

People

are

tired

ploited

and

are

of

Now, back to the title assigned
—what lies ahead.

be

Yes, if
you

will make the Wall

Street

future

are

because

Street

of

could

here

do.

generation

I

realize

life

that I

have

territory in

some

ful

If that

ago.

shall

Again,

But

any

hope

a

we

should

to

not

I

you
our

these

have

given

may

in developing
business.

what

we

tunities will make

you

covered

do

with

a

could talk for

thoughts that

ture of

were

rather super¬

of

one

in¬

professionally

I

well

wouldn't be here today.

you

I

and

wish

how

Street

bigger and better just because
are doing more thinking and
working than was ever done a

jects.

our

I

see

the

Wall

be

are

to sur¬

to

Wall

of

the

you

on

with

you

tomorow.

be

will

you

to be?

it so—but only
that.
What you do

do

can

be the

make

you

hours

in

Will it

kind of world you want it

ficial way.

are

people to do it.

particularly

the

high.

financial

we

competition

friends in

in

large.
It is like
wild-catting for oil. It is expen¬

become free of the

we

for

covered

result
These

services

have to provide
vive

our

It is

befcause

lot of

their

our

other

be successful.

low

the

products

Techniques

difficult

so,

discoveries of

using

to

issued? It might be
worth while to exchange person¬
nel
with
them
for
periods
of
training. How closely do we fol¬

advice

ma¬

We need to improve our tech¬
niques for going after new under¬
writing business.
This is essen¬
tially a sales effort.
Like any
sales effort, it must be
carefully
planned, organized, and executed

to

that their securities will

so

be

can

too.
open

relations

more

can

known

public

to

pro¬

examine

us

be

can

command

their

Let

How

better

be

engaged in investment

us

we

pro¬

as

great opportunity is

those of

can

other industries about

Our

our

them.
are,

man¬

we

management and sales

clients.

you have made
mind to get started.

Improved

the

So

ment

plenty of help

busi¬

ness.

and

once

they

their

our

available

and

person

with

entrust

with

for

out

your

Lastly,

conduct

your

our

work

im¬

to

convince people that

the

are

be

knowledge.
by

appearance,

want

of

further in¬

come

the future level of

under¬

of people with

groups

press

ability

A

to

years

quality of these

may

banking to improve

is

your

neips to be a good speaker

that

you

expect

you

people behave and you
develop the art of persua¬

sion.

so

You

if

each

must

You

of information

mass

ductive in half the time.

There

as

is thrown at you every day.
You
have to write and speak cleany

How does a firm go about start¬
ing such a program? I won't bore
you with details.
It is something
you

they

Nowadays to
business, you
read rapidly

make

himself.

be

obsolete

as

hundreds.

of

to

but

men,

the horse and buggy.
be successful in our

must

have many more

end."

only

also need to be taught how to sell.
The old days of "Send him out to

stand how

must
and much better
we

"sales

not

securities

to

succeed,

the

need

Recruiting Personnel

are

greatest areas for
in our business is

call

we

Salesmen

out of them.

money

improvement
what

also

Underwriting

to

something

the

upon

the human approach
business, we have the
opportunity, if we want to take it,
of using all
the new personnel
techniques which have been de¬
veloped to have associated with

is

true

industry has made such tremendous

will do with

we

foreseen.

time.

and

is

To which extent this increase will

which the American

many

our

ladies'

level; their potential is

be

cannot

brandy in the

colleges to thought of before. It must be ac¬
explain the opportunities in ourj complished, however, by an atti¬
business are a big help. They not tude of mind on the part of all of
only reach those who come with us that we are trying to be really
helpful to our clients rather than
us, but many more who don't, will
visits

Securities Dealers, and the Na¬ I years learning to conquer his en¬
His success in doing
tional Association of Investment vironment.
Companies. At that time we felt this has accelerated since the dis¬

world's

goods.

Association's

your

supported

by the New York Stock Exchange,
American
Stock
Exchange, the

can

manufactured

the Stock Exchange and
by individual firms to educate
through advertising.
Your own

of wines and

terialize,

saturation

and

Applying

us

various efforts being

are

some

Firms, the National Association

birth

gave

us

The

the Association of

He

It

people to buy his
product and then figure out a way
for them to get the money.
Our
people, I think, have, or will have,
It is

a

made by

edu¬

in

the money.

Wines

But these

to

dictated

"fashions," and this

its

near

safely predicted.

customers.

Henry Ford had to create

desire

it is

that

year.

tioned

before.

in

between

$7.3

are

we

securities

tremendous

a

one,

billion

$80

If

debt

our

to

one

sell

to

1965.

and

now

improve

to

equity

new

amount

1946 and 1954."

able to

are

equity

the

twice

than

more

raised between

peculiarities, he was one of the
great business statesmen I men¬
two ideas

There

what

$160 billion

in

by all together.

have

this will have to be raised

differs from the Fel¬

series of lectures and visits taken

products, tools, and jobs required
to reach the economic levels pro¬
of

people, mostly

associate professors.

or

lowship Program

corporations alone for the plants,

jected for that year.

our

Finance

on

own

limitless

crease

that

attended by 28

was

Of course, a lot has been

curities.

an

Ex¬

are

we

today with the necessity of

faced

developing

devise ways to beat it.

to

automobiles,

his

for

ket

in¬

question is what

summer

Paris

year,

acceptable to the taste of the

beverages.

nowhere

various aspects of

Forum

not

this fact

seen

future

almost

Last

on

business.

This Forum

unfair.

spectacular

only slowly follow the taste trends.

our

or

and

slow.

are

of premium quality, being aged for

of

What Lies Ahead in Wall Street?
fair

sudden

a

is

brandy field

produced according to the market requirements.
and

three-week

whether

sweet-tasting

like higher automobile sales, which can be quickly

crease

Continued from page 6

petition,

of

types

When, last
were

The

consumer.

We have

consumption trends are becoming visible
on the horizon.
In the total liquor consumption, of which
whiskey is the main representative, we are nearing the
saturation point.
The wine and brandy field, however,

clear proof of this statement.

These changes in the wine and

the

Let's

other

by the

enough

its

create

The

grow¬

American

weather.
In

to

development.

change in the wine field is the

dictated

women, the Americans simply did not accept
the dictates of the powerful Parisian fashion center. The
market is large enough and mature

ing acceptance of sweeter-tasting types of wines by the
public. The great increase of the consumption

lies in the

in the brandy field

change of its seasonal use: Whereas it used to be a "coldweather"
drink,
brandy today has wide acceptance

fields:

which

product, but simply due to the fact that

Thursday, November 24,1955

.

will not be dictated to.

other

like the American wine types better.
The
upgrading of quality of the American product and the
better understanding of the American wine
industry of

Another noticeable

the imports.

Another development

in

.

obvious and

are

consumer

Americans
.

today widely preferred over

taste of the consumer and is

trends

wines, which have not been able to regain their strong
prewar position. This is not due to price, because some
imported dessert wines are offered at prices comparable

.

I

be

sub¬
you
use¬

the fu¬

hope that

your

oppor¬

business

as

useful, interesting, and exciting

as

I

think it will be.

our

Volume

182

Number 5484

Continued

from

.

.

The Commercial and Financial Chronicle

.

20

page

Western Maryland Ry.

FNMA'S Role in
in

and

funds

where

areas

are

scarce

or

mortgage

non-existent.

by

institutional

purchased

lenders

and

by

FNMA

investors,

from

including

banks, savings and loan associa¬
tions, mortgage companies, and
other

organizations
qualified as eligible
have entered into

have

sellers

selling

a

ment with FNMA.
tor

that

and

agree¬

Builders, Real¬

organizations, and other

ments

of

the

housing

seg¬

by working

through

FNMA

approved

-

seller

organizations.

Eligible

Mortgages.

FNMA's

Secondary Market Operations are
by law, confined, insofar as prac¬
ticable, to mortgages which are of
such quality, type, and class as to
meet

generally
the
purchase
standards imposed by private in¬
stitutional

mortgage

investors.

FNMA's

purchases are limited to
mortgages which are readily sal¬
able

with

the

offices.

anticipation

that

they

will be sold to permanent
investors at the earliest time
pos¬
sible. By continually

turning

over

the

the

purchase

of

a

inspection

of

procedures

(1)

the

are

usually

to

gages

FNMA

at

price
on
a
purchase
contract, accompanied by a de¬
scription of the mortgage, descrip¬
tion
of the
property (including

the

at

volved,

mortgages

Association.

houses,

accordance

covering
very
old
mortgages
relating
to
houses that are poorly
located, or
to

homes

space

or

lems,

do

FNMA.

with inadequate
living
presenting credit prob¬
not qualify for sale to

Within

these

mortgages which are currently
eligible for purchase include VA

section

501,
and
FHA sections
(b), 203 (i) (including the old

title

I

section

8), 207, 213 (indi¬
and project managementtype mortgages), and 222.
vidual

,

The

Association's

ceptability
that

to FNMA must:

(1)
and

Cover

must

have

been

or

after

Aug. 2, 1954.

(2)
ed

Not exceed

$15,000

in

dwelling unit

not

Have

an

less than

by

on

un¬

lee of one-half of

be

one

per cent to

paid

by the mortgagor, the
unpaid principal balance may be
not less than

(4)

Be

$4,000.

owned

by seller

on

the

day it is initially offered to FNMA
for purchase and must then have
been

insured

FHA

or

Market
to

VA.

or

guaranteed
by
FNMA's Secondary

Operations

already existing
commitments

no

purchase
(5)

mortgages
are

been

amount equal

prepaid

mortgage
chase

of

or

the

down

alent

(6)

excessive

ties,

by

an

to the closing costs
items
unless
the

paid

such

closing
financing the

property

payment in

or
an

tions

the
pur¬

made

a

equiv¬

the

of

FNMA's
that

assure

fees
con¬

facili¬

the

opera¬

one

one

vulnerable

more

principal

mortgage

of lesser

Detailed

all

purchase of

the

and

the

Conclusion
Under

its

Operations

Secondary

FNMA

Market

should

be

in

the

market at all times to
buy
mortgages where and when mort¬

funds

when

needed.

It

that

useful in
is

as

a

is

and

to

sell

investments

are

scarce

where

and

lieve,

are

self-evident,

FNMA

is

I

be¬

particularly

mortgage market such

now

being
experienced.
eight
hundred
banks,

mortgage

companies and others
signified their intention to

participate in the Secondary Mar¬
ket Operations by
executing sell¬
ing or servicing agreements with
the

Association.

Since

the

incep¬
of the new Secondary Mar¬
Operations on November 1,
1954, the steadily increasing in¬
terest and participation by mort¬

up

the

housing

to be clear

Realtors,
making
industry, appear

indications that FNMA

purchasing
procedure
established by FNMA in its Sec¬

is

ondary Market Operations is gen¬
erally similar to that employed

rently, about $5 million in

accomplishing the

which

it

gages are

was

purposes

established.

for

Cur¬
mort¬

being offered to FNMA

of

61,290

shares

value of $100. The

par

has

and

preferred, each hav¬

funded

a

of

debt

car¬

$69^

Western

Maryland,

impor¬

an

tant originator of bituminous coal

traffic

from mines in Maryland,
Virginia and Pennsylvania,
provides, through its connections
with
other
roads,
the
shortest

West

route

to

from

the

eastern

Pittsburgh

and

seaboard

large

many

industrial centers in the midwest-.
It

is

also

a

short

route

Pnila-

to

delphia, New York and New Eng¬
land

through its connections with
Reading Company. The com^
pany's maim, line extends i west¬
the

1

ward

from

.

Hagerstown

Baltimore

?

through

Cumberland,

to

Maryland.

might mention the Talon zipper,

As compared with

relatively high

a

no

a

most

number of

The
population losses during the period 1940-50
in the South suffered from worker migra¬
Growth

of

the

is

area

partly due to the

highest birth rates in the country.

earnings in 1945 were $1.68, but in 1946 with the
profits taxes profits jumped to.$2.72. These earn¬
not exceeded until 1949 when $2.79 was reported. They

ings were
again declined (to as low as $1.90 in 1951) but in the past four
years have advanced sharply, reaching $3.42 in
the 12 months

Se|pt.

ended

of

Other

income, $1,320.

per capita

the

For

the

excess

30, 1955.

writing
ton

nine

months

ended

$5,587,823.
of

members
group are:

the

under¬

The First Bos¬

Corp.; Harriman Ripley & Co.:

Inc.; Dick & Merle-Smith; Fran¬
cis

I.

ton &

&

du

Pont

&

Co.; W. E. Hut-

Co.; Carl M. Loeb, Rhoades

Co.;

R.

W.

Pressprich

&

Co.;

Baker, Watts & Co.; John C. Legg
&
ert

Co.; Stein Bros. & Boyce; Rob¬
Garrett

&

Sons; La Grange &

Co.; and Mead, Miller & Co.

Much of this gain was probably due to the use of large modern
steam

generating units.

produce

one

In 1954 only 10,648 Btu. were required to
very efficient usr of fuel as compared

net kwh.,

a

with the U. S. average of about 12,200.

This efficiency explains the

company's ability to maintain very low residential and industrial
rates despite the fact that it can no longer be considered a hydro

property.

It

uses

coal

fuel, with

as

a

small amount of natural gas.

The stock has been

selling recently around 55 V2 on the Ameri¬
can Stock Exchange,
paying about $2.20 (assuming a 40c year-end
extra as in 1954) to yield
nearly 4%. Based on the recent earnings
of $3.42 the

each

week.

which

ber,

in

price-earnings ratio is about 16.2.
Mortgage

November

1954,

That
to

grow

could

be

become
and
you.

continue

I

an

or¬

Co. Adds

(Special to The Financial Chronicle)

SAN

DIEGO,

Calif.—Erwin

Ernst has become
Dewar &

Building.
R.

E.

associated

M.

with

Company, First National
He was formerly with

Evans

&

Co.

so

many

years

developed

seems

recommend

acquainted

the ways it may

hoped
to

that

with

be
you

FNMA

be useful to

AREA

RESOURCES

explains why

area

we

BOOK
serve

tremendous opportunity to

which the housing in¬

for

assured.

will

and thus provide

ganization
dustry

Secondary

new

Operations

Dewar &

Decem¬

to

only one
each, have steadily in¬
September, 1955.

FNMA's

Market

purchases,

and

amounted

creased to 877 in

builders,

heard

Duke's share

mortgage

organizations

we

fact that the Carolinas have the

ket

lenders,

never

Or

areas
northern cities.

to

tion

other

who

he sits.

it has

areas

lifting of

area.

gage

which

on

had virtually

tion

lers Guide which you may obtain
from the FNMA Agency office in
your

people

although most

and

"In

of

outstanding. There

income

of

prosperous segments of the South.

Sel¬

a

i

;

Mary¬

shares

chair

area

including

contracts

•

example,

Western

661,465

Sept. 30, 1955 Western Maryland
reported total railway operating
revenues
of $34,474,316 and
net

lot

a

other

Special

used, is available in

■

well known to all, the tape for which is processed here."
The Piedmont area in the Carolinas is also one of the

concern¬

Functions,
of

a

Secondary

new

Operations

Assistance

A

marketability.

information

of

Market

balance.

:

other industries in the area—for

to

437,768.

textile

v-)

a

rier

and net income 66%.
However, the textile
relatively less important than in the 1930's. It has

are

stock

preferred

ing

reve¬

effect

amounting

Analysts, "there
Piedmont, yet the
chances are good that each of them is directly in touch with one
or more of its products.
If not through the shirt on his back or the
socks on his feet, how about the cigarette he is
smoking or the
are

cent is charged in

per

Most

have

of 4% second

the

to

it produces more furniture than the entire State of
Michigan.
the North" Mr. Reed remarked in his talk to the

cent of

per

7%

reve¬

In the 1932 depression

cumulative

7%

outstanding 177,419 shares of

are

16%

now

share earnings.
Of course, there

on

read¬

a

common

plants today operate at loads of 75-85%. The
textile slumps of 1949 and 1.954 had comparatively little effect on
the growth of Duke Power's revenues and no discernible

FNMA
Purchase and Marketing

a

unpaid
of

and




nearly 30% of

first

shares

will

land

become

financially self-sup¬
Accordingly, in connec¬

connection with the

gage

Procedure

dropped

nues

will be

charges

Be marketable.

The

the company might be considered

nues)

Secondary Mar¬

fee of one-half of

amount.

Purchasing

the

use

and

have

reduced

mortgagor
either
charges incurred in

cash

to

of kwh. output and contributes

funds

Giving effect to the sale of the

revenues

tos.

—

issued

absorbs 46%

they will reasonably prevent

Almost

mortgages.

Have

and

restricted

are

in

in

the

of

other

will be applied to
all dividend ar¬

stock,

additional

half the level of 1949.

over

ket Operations with the
objective

imposed in

are

nection with

illustrations

10 years and an

little

of

the

on

years.

$19,250,070.

to

that

charges

forms

paid principal balance of not less
than
$5,000, except that if the
mortgage provides for a service

due not only

was

very well diversified, including spinning and weaving
mills, hosiery mills, knitting mills and finishing plants. Textiles
once meant cotton
spindles and yarn, but now the industry includes
practically all the.pynthetics as well as silk, wool, glass and asbes¬

and

family residence

unexpired term of

a

payment

preferred

generating units (1,036,000 kw. has been
1949), but also to a decline in hydro

business is
Certain

the

in the postwar period. It now
has 1.1% of all electric customers in the country vs. 0.6% in 1934.
Because of the heavy concentration of textile business (which

the

vary

of the company

Class

a

sale

the

with

fi¬

stock

by

many

from

additional stock

The company's growth has been well above average, with an

the

Charges.

covered

thereby.

output to

railroad in

Proceeds

November.

increase of about 160%

remaining
mortgage, its interest

Fees and

ing
principal

since

equity therein.

or

have exceed¬

or

original

amount for each

(3)

property

insured

guaranteed by VA

with

installed

industrial cycle than other utilities.

fee

residential

FHA

or

ac¬

provide

mortgages to be eligible for

sale

by

prices

tion with the purchase of
ily marketable mortgage,

principal

requirements

The

of the

porting.

Special Acceptability
Requirements

determined

as

One

first

the

marks

common

undertaken

nancing

generated by the hydro plants

This decline

offering

underwritten

rears

the construction of steam

in-'

Sons.

The

kwh., and the annual usage of 3,765 is nearly 50% above

compared with 35% in 1949.

as

par¬

mortgages

&

of

was

334,177

of

owner

as

by an investment
headed jointly by Morgan
Stanley & Co. and Alex. Brown

Sojath Carolina; the population served exceeds 3,000,provides transportation and water service in various

It also

Co.

RR.

Ohio

55,696 shares of
stock to which it

additional
entitled

group

-

.

-

Dec. 7,

on

&

standing stock. The offering of the
remaining 72,901 shares is being

and

poetry

expire
at
1955..

will

Baltimore

underwritten

rate, the location of the mortgaged
property,
and
the
mortgagor's

limitations,

the

203

term

price for the

original

for installation in the fall of 1955, to be followed
by the 350,000 kw.
proposed Allen Plant in 1957. In the 12 months ended Sept. 30

Secondary

Market Operations are established

of
.

only about 12% of total output

ally the standards imposed by the
average
private
institutional
mortgage investor. For example,

deal

(EST)

P.M.

shares of Western Maryland's out¬

the company was entirely hydro-electric.
At the 1954 year-end, generating capacity totaled 2,194,473 kw., of
which only 501,402 kw. was hydro. A 150,000 kw. unit is scheduled

obtaining current
effecting deliv¬

of

good

a

offer

3:30

humor, to relieve the voluminous statistical data which he pre¬

cents per

of the mortgage to FNMA.

class

contained

scription

is

the national average.
Some 50 years ago

title evidence and

market

talk

the record date. The sub¬

on

the

a

Security

of

class*

of

will subscribe for

electric revenue, commercial 14%, textile 29% and other
industrial 11%. Residential kwh. rates are extremely low at 2.12

If the offer is accepted, the
is allowed a period of 45
days in which to consummate the

purchased

Vice-

Exchange.

for each,

share

one

regardless

sented.

37%

(4)

those mortgages that meet
gener¬

Stock

Electricity accounts for 95.3% of revenues, trans¬
portation 4.4%, and water the remainder. Residential sales provide

seller

the

American

shares,

The

communities.

declines to purchase the mort¬

ticular

Reed's

000.

gage.

its

Society

Anderson in

amended,

under

the

on

interest in the

some

Duke Power supplies electricity in five-sixths of the Piedmont
section of the Carolinas, including
Charlotte, Greensboro and Winston-Salem in North Carolina and Greenville, Spartanburg and

information and, when
necessary, inspects the property.
(3) After considering all per¬

this

purchases

listed

is

stirred

-

other

by

York

Mr.

photographs), credit report, and
payment record of the mortgagor.
(2)
FNMA analyzes the offer

or

which

have perhaps

events

sub¬

to

per

the rate of

held

rather unique address before the
Analysts on Nov. 16, and more
recently stockholders approved a two-tfor-one split in the stock,
which, however, awaits approval by Federal and State authorities.
New

current

tinent factors, FNMA
accepts
offer as tendered or as

recent

President C. S. Reed delivered

purchase

and

at

six

report to stockholders is modest and unadorned.

stock,

observed:

the

Trust, there has been less market inter¬

very conservative policy, maintaining

Two

Sellers offer eligible mort¬

Purchase Prices. The prices that
FNMA
will
pay
for mortgages

FNMA

annual

eligibility,

benefits to tfae Association and to
stockholders. In keeping with

principle,

•

a

rights

1955

share for 128,597
shares of additional common stock

utility issues. The company has fol¬
a high equity ratio
(although this declined from 75% in 1948 to 53% in 1954), keeping
kwh. rates at low levels, and paying moderate dividends.
The

property
(if
the
following

etc.,

scribe at

est in the stock than in
many

lowed

mortgage.

mortgage

necessary),

ery

the

Trust and the Doris Duke

22,
$41

sec¬

preferred

stock of record

common

Nov.

on

stock,

preferred

non-cumulative

stock and

utilities

instruments, deter¬

mination

a

maximum

of

In order to permit examination
of
the mortgage

transaction

for

Company is one of the most important southern
(it is second largest in the Southeast area) but because
nearly two-thirds of the stock is held by the Duke Endowment

its
Agency
FNMA relies

specific contract entered into

for

cumulative
ond 4%

Duke Power

in

out

Western Maryland
Ry. Co. iff
issuing to holders of its first 7%

DUKE POWER COMPANY

the

the certifications and repre¬
sentations made by the seller in

the
portfolio
of
its
Secondary
Market Operations, FNMA creates

revolving, fund

to

Offering Underwritten

By OWEN ELY

mortgage by FNMA

Generally,

Utility Securities

inves¬

upon

industry

that have not qualified as
eligible
sellers may
nevertheless
utilize
the facility indirectly

a

carried

are

Who
May
Sell
Mortgages to
FNMA: Acceptable
mortgages will
be

mortgage

tors in the general
secondary mar¬
ket. Negotiations

purchase of

Procedure

Public

Mortgage Market
leading

Secondary Market Operations
'

45

(2229)

With King Merritt

P. 0. Box 899, Dept. M, Salt Lake

(Special to The Financial Chronicle)

GRAND RAPIDS,

Mich.

—

For¬

rest W. Baldwin is now with King
Merritt

&

Co., Inc.

offer*

industry.

Write for free copy

City 10, Utah

46

(2230)

The Commercial and Financial Chronicle

11994456

creased

119955342

Bankand Insurance Stocks
This Week—Bank Stocks

The

present New

the consolidation

history

Company

York

of four

Trust

banks.

made to attain

was

mere

Company is the outgrowth of
None of the mergers during its
size; each component institution

bring to New York Trust its specialized branches of the
banking business and resulted in a well integrated bank.
The

company started

business in

1889

New

York Security
Company, char¬
1905 the title was changed
to the present one.
A merger with
Liberty National Bank was
effected in 1921. Liberty National,
primarily a commercial insti¬
tution, had in 1919 acquired Scandinavian Trust
Company, which
brought an excellently equipped foreign department to the ulti¬
as

Company, and in 1905 Continental

tered

1890,

mate

built

in

merged with

was

consolidation.
up

The

Trust

1195095

1889

New York Trust has
bank

has

been

seen

of

in

having,

members

its

on

but every effort is
had the

cultivate

Cash and Due
Gov't

Condition

of

from

Res.

and

as

five

and

Capital
Surplus
Undiv.

40,000,000

General

8,086,000

Reserve

Dividend

364,526,000

5,792,000

1,156,000

Payable

!

6,462,000
7,534,000

4.026,000

Deposits

24.0%

Loans and Discounts....

46.7

3.7

Miscellaneous Assets

At

recent

....

date^the government bond portfolio

was

Up to 5 Years

The
same

5 to 10 Years

92%

Over 10 Years

lb

1953

91

9c

73
Due

within
in

seven

Due

in

six

d Due

in

six

c

sources

to

eight

years,

nine

years.

to

gross

income

were

as

follows

Loan Interest

Fees, Commissions

On Securities

and Miscellaneous

53

25

22

1952

58

22

20

1953

61

20

1954

55

25'

19

average
on

rate of return

On Ln*ns

On Governments

2.44%

1.42%

2.69

1.54

3.00

1.69-

1953—

3.19

1.90

1954

3.16

48%

42%

cause

for

4.04

469

2.50

56%

45%

4.35

490

2.50

59%

51%

61.96

4.50

474

2.75

58%

50%

4.68

515

2.75

69 %

54

63.76

Adjusted

split

for 'i-for-1

The gain to
in

his

rate

in

1955.

early

the stockholder in this period (consisting of the

equity plus cash dividends)

of

This

$4.20.

was

Trust's

1.90

predominant

earned

was

year-end

on

1o

securities

of

operating earnings.
held

in

such

as

is

investors,
organizations.

income

loans

in-

FEDERATION BANK
& TRUST CO.

2.

Branch:

St. James's

Bulletin

in

Protectorate.

£4,562,500
Paid-Up Capital
£2,851,562 Reserve Fund
£3,104,687
The Bank conducts
every description of
banking and exchange business.

Trusteeships and Executorships
undertaken




the

gives

good

size

was

blocks

insurance

effect given

no

moderate 64%

a

among

companies

institu¬
educational

many

and

on

from

15

page

Request

Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock Exchange
120 BROADWAY. NEW YORK
5, N. Y.
Bell

(L. G.

BArclay 7-3500

Teletyve—NY

Gibbs,

Progress Repoit

pacity and for transportation and
marketing facilities. Canada today
a
pipe line system extending

has

from coast to coast.

Canadian Iron
natural

Ore

1-1248-49

paper.

oil, is- iron ore. Prior
II, Canada had been
almost entirely dependent
upon
foreign imports for its iron ore
requirements. However, two ex¬
ceedingly important discoveries—

St.

other

the

and

Quebec-Labrador
the

?■

provided

Canada

iron

reserves,

boundary

at

north

River,

have

with sufficient
not only for

requirements,

own

the

on

350 miles

some

Lawrence

ore

a

tons

000

major

also

but

exporter.

8,000,000
tons.
increase of

This
373%

an

with a 37% growth in
production which,
in the

period,

from

Canada

on

aluminum

has

increased

during the last 10

131%

asbestos

years,

65%, copper and nickel 65%, zinc
58%, lead 24%, and gold 54%.
Although Canada does not pro¬
duce

aluminum

or
bauxite, the
refining
of
alu¬
minum
is one of the country's
most important metallurgical in¬

smelting

and

Aluminium Limited,
through its subsidiary, Aluminum
Company of Canada, is fast be¬
coming the largest and lowestcost company producing this metal
in

the

world

because

of

low-cost

hydro-electric power. Its present
capacity of 554,000 tons annually
will

almost

reach

909,000 tons by

1959.
The

almost

insatiable

for nickel has lead to
search

for

that

International

demand

intensive

an

strategic

Nickel

metal.

Company,

the largest producer in the world
has spent over $150 million ex¬

its

tending
bodies
the

in

Sudbury area.
In
vicinity, Falconbridge
now
developing other

is

important

bodies

ore

and

panding its operations
siderably.
Sherritt

Gordon

is

very

ex¬

con¬

has

developed
nickel-copper mine at Lynn
Lake, Manitoba, and is operating
a
new
refinery at Fort Saskatch¬
ewan,
Alberta.
More
than
$50
a

companies. It should, however, be
that
although net

profits
panies

increasing, new com¬
exoanded
greatly,

are

have

invested

have

and

to

million has been expended on this

gas

Production

leaching

process

in

expected

1955

will

exceed

tons

to attain 5,500,000
by 1959. The Iron

Company

of

Canada,

owned

and

ammonia

an

the

for

refining

of nickel. Many new copper mines
have been opened up in Canada
since

1946.

Probably

the

most

important is the

development by
subsidiary of Noranda in the
Gaspe Peninsula which is just

by five U. S. steel companies and
Hollinger
Gold
Mines
and
its

a

subsidiaries, which has developed
the
rich
iron
ore
deposits in
Labrador and
Quebec, produced

beginning
production
and
will
have a capacity of 6,500 tons a
day and should provide an in¬

2,000,000 tons in 1954, its
of operation, and pro¬

year

short

time

is

of

crease

output.

8%

Canada's

to

Total

cost

of

ex¬

copper

development

pected to reach 10,000,000 tons an¬
nually, and probably considerably

mately

$40 million.
expansion of

a

iron

ore

will

mines

produce between 20,000,000 tons and 30,000,000 tons
'of high grade ore, with most of
this production exported to steel
companies in the U. S. A. The'importance of the growth of domes¬
oil

and

iron

industries

in

the

be over-emphasized.
Dealing with the base metal in¬
dustry, Canada had substantial
production
prior
to
1939,
but

the

is

copper

Gaspe

approxi¬

The
mining and
refining at Consolidated Mining
and Smelting's property at Trail,
B. C., makes it the largest lead
zinc
operation
in
the
world.
Other
important
discoveries
of

rich

ores

metals

containing various base

have

been

Manitouwadge
Ontario, in the

*

development

during

the
new

made. For

sums

and

in
are

satisfactory return
in other

a

their investments. As
continue

New

made

in

the

of Northern
Bathurst area of

Brunswick, and in the Yukon

was

war

and

since

discoveries have

industry, it

may

know

that

then,

been

invested

been

than

in

accentuated

example, production of

\

more

any

manufacturing

and

paper

be interesting to
new
capital has

in

this

other

in

category

branch

Canada.

at

industry

of

steel,
and

war,

a

including pipe for the
industry, is now pro¬
duced
by
domestic
mills.
The
principal
steel
centres
are
at
Hamilton,
Ontario,
where
the
Steel
Company of
Canada and
gas

Dominion

Foundries

Steel

and

\

located^

are

Scotia,
Coal

At
Sydney,
Nova
Dominion Steel and

the

Company, and

at Sault Ste.
Algoma Steel con¬
ducts its operations. In addition,
several
foreign steel companies
are contemplating mills in Canada
Marie

where

and

Atlas

and

stainless

Steels

producing alloy
out a fully
integrated and profitable diversi¬
fied output of steel products so
necessary for the development of
industrial

rounds

Canada.

chemical

The

industry has shown considerable
expansion since the war, with ex¬

penditures
$600

running
This

in excess of
development

million.

has

chiefly

tion

of

involved

low-cost

includes

and

utiliza¬

the

hydro-electric

petroleum and natural gas,

power,

such

companies

as

Dupont of Canada,

Canadian In¬
dustries Limited, Dow of Canada,
Shawinigan Water and Power and
subsidiaries, and Canadian Chem¬
ical

and

the

major

Cellulose.

Prectically all
refiners have be¬

oil

partners

- with
these and
developing a domestic
petro-chemical industry.
General
Motors,
Ford
and
Chrysler are all manufacturers of
come

others

in

and

cars

States,
1954.

in

trucks

in
is

output

1955,
of

Canada.

in

as

runing

Ford

the

ahead

well

Canada

The

United

the

is

of

onlv

Company with securities held by
public.
In the public utibtv field since

the

1946, about $8%
expended

on

billion has been
capital

new

ment of all kinds.

invest¬

Of this amount,

52% was scent by private enter¬
prise, and the balance by Federal,

provincial and local governments.
The development of new hydro¬
electric

projects accounts for the
expenditure.
Engineering
rrports cn proposed new! hydro¬
lar?e

electric

projects—on° in Northern

Labrador at
other

in
of

course

tually

for

become
new

dustries.
The

Falls, and the

Yukon—are

in

preparation, and

may

energy

Grand

the

the

the

even¬

source

cf

metallurgical in¬
...

rapidly-increasing popula¬

tion of Canada and
standard

draw

consumer

Paper & Pulp Industry in Canada

pulp

the

of

practically rebuilt her

^

higher living

attention

those

to

industries dependent upon a mass

and Northwest Territories.

Moving to the

increase.

to
end

the

oil

area

cannot

many

large

expansion

plant

worthy

new

natural

tic

over

remembered

ore

the

same

Nickel

underground

development which is going to be
an outstanding
operation, utilizing

in

to

annum

per

6,000,000 tons in 1955.
There has recently been some
criticism of newsprint price in¬
creases
by Canadian and U. S.

cost of some
$800 million. Practically all types

1944, and since that time, produc¬
tion has exceeded 13,000,000 tons
of high grade direct shipping ore.

Ore

have

conservation

steel

dustries.
h of

resource

as

Manager Trading Dept.)

Specialists in Bank Stocks

of

costs

balance of international payments

Telephone:

containers and
Modern methods
placed the
wcod supply in Canada on a selfperpetuating basis. In the last 15
years,
production
of newsprint
has increased from nearly 3,000,board

paper

wrapping

entitled

billion,

Lake

market almost
domestic one be¬
increasing demand

their
a

the

of

Since

portant

sub¬

part

Canada has

Another

States.

-

very

a

industries, labor and raw material

Continued

A

exports

of
its
newsprint
products—about 80%. Companies
producing other types cf paper

en

Canadian

Uganda

Authorized Capital

at an

or

between

mean

book value, with

The dividend pay-out

profits.

stock

The

duction

of

source

in

Square, S. W. 1.
India, Pakistan, Ceylon,
Burma. Aden, Kenya,
Tanganyika,
Uganda, Zanzibar, and Somali-

$42.04,

was

the

of

of about 4.07%. The stock is selling at approximately
times 1954 earnings (adjusted for the split-up). In that year

some

Bishopsgate,

(London)

86%

yield

first

BANK

Government

26

58.48
60.21

eventually

Colony and

also

2.25

higher when the St. Lawrence
Seaway
is
completed
in
1959.

London, E. C.

land

475

million
on

its governments:

1952..

End

3.59

2,000,000 tons, with annual produc¬

-Average Rate of Return-

INDIA, LIMITED

West

are
finding
exclusively

56.94

tion

following tabulation gives the

NATIONAL

13,

39%

creased

20

j

has been from loans, in the above period income from

Branches

45 %

1939-1955, has in¬
1,532,000 tons to
over 3,200,090 tons. Mining opera¬
tions at Steep Rock began late in

in

Int. and Divs.

1951

Office:

2.00

steel

22%

Kenya

428

same

of

Although New York

Head

3.27

compared

31%

the

40

55.60

represents

47%

to

40Vs

45

estimated

years,

years,

1950

Bankers

51

2.00

Since 1939,
iron ore production has increased
from 123,000 tons per year to an

27d

six

b Due

New York Trust's loans and discounts and

of

2.00

400

as

years:

The

459

3.25

her

100
99

bank's

3.27

54.92

of

8%a

1952

.

45%

53.67

1948.

Knob

Maturities-

a

stantial

just prior to World War II at
Steep
Rock
Lake
in
Western

distributed in the following maturity categories

1954

49%

58

United

the

in

still

i947__

Ontario

1950

57y8

also

2.00

one

1.2

v-..

year-end

Canada

to World War

principal categories follows:
24.4

"'v,

Low

great importance, probably as im¬
$781,192,000

U. S. Government Obligations..Other Securities......

,

High

$1.88

tional

687,053,000

V——

_

but

Dividend

900,000

Acceptances
Accrued Taxes & Other Liab.

A breakdown of these assets into

f

1955

$781,192,000

Cash

—Price Range—

Assets

and this huge sum
has been expended not only for
(exploration and development, but
also
for increasing
refinery ca¬

$78,086,000

27,123,000

Assets

Invested

Earnings

454

well

$30,000,000
Profits-

2,100,000

Accept.

Other

30,

and

$591

of the

one

are

pacity

has

Liabilities

190,525,000

Bank..

on

-September

$187,099,000

Discounts.....

Customers' Liab.
Rec.

There

\

,

Banks

Bonds and Securities

Loans

Int.

banks.

has

Operating
0

the newsprint in¬
operated at full ca¬
demand is constantly

years,

dustry

3.70

$2.5

Obligations

Stock of Fed.
Other

It is regarded

several

increasing, despite new production
developing, not only in Canada,

Share *

Per

—

a

"wholesaling" its credit,
This

Record

overhead and enabling the bank

large

Assets

S.

derives

accounts.

dropped 19%.
The
governments were,

on

$3.97

15.8

of

group

a

It

Book

7.3%

The

branches.

Statement

U.

board.

smaller

relatively small staff.

of New York's

compact

located

to

effect of keeping down

to operate on a

most

made

histlory,

Trustees'

substantial proportion of its income from

$700,000,000.

over

its

over

and

52.38

a

approximately $2,300,000,

this item grow to

fortunate

highly influential

deposits

governments

loans

high and the low price at the start of the period.
At the present price of about 73%, the present $3.00

corporate

with

on"
on

Statistical

Value

annual

bank had specialized in personal trust
activities.

in

Ten-Year

increase

Finally, in 1949, Fulton Trust Company, dating from
1890, was
absorbed, and its shareholders paid off at $250 a share.
This
Starting

that

return

Thursday, November 24,1955

..

S49.92

*

In

original New York Trust Company had
and personal trust business.

substantial

a

it.

the

1950

served to

& Trust

in

respectively, 30% and 34%, in approximate figures.

By ARTHUR B. WALLACEi

The New York Trust

while

17%,

increases

.

of

For

operation.
of

food;

Loblaws
well

in

market

for

profitable

We immediately think

Dominion
have

Stores

done

and

extremely

developing

supermarkets

generally following

the shopping

center

pattern

now common

in the

Volume

182

Number 5484

.

.

.

The Commercial and Financial Chronicle

47

(2231)
I

U.

S.

George Weston which

con¬

trols Loblaws, has other wide in¬
the food industry,
in Canada and abroad.
in

terests

Specialized

food

worthy of mention

companies
Canadian

are

Canada

Canners,

both

&

Dominion

goods hitherto im¬

that imports rising by
50%
will
nevertheless

so

trading

the whole

1954.

The

would

As

net

in

the

three

last

four

or

been

with

grow less rapidly than total corlsumption of such goods. (5)' One

certainly expect that the
flow of capital from abroad

has

,compared

$2,327,000,000,
$1,350,000,000 for

Toronto

Stock

ing interest in Canadian equities,
the

share

Stock

volume

the

on

averaged

account

day since the first of the

in

ments.

Canada,

divorced from the

are

commercial

earn¬

of

the

And

balance

finally,

pay¬

must ex¬
by, greater

one

pect that as time goes

banks.

of

Exchange in

ceeded

all

past

Toronto

1955 'has

over

and,

year

several

on

rate

financial

of

of
has

growth

institutions

these
been

constant and in step with Canada's
•

growth.
Canadians, like Americans, are
demanding more of the better
things of life, and consequently,

'

thriving finance
ness is developing.
a

•

and

ceptance

Industrial Ac¬

since

manner

credit

of

for

occasions, volume has
exceeded 12,000,000 shares a
day.
Over 1,000 companies are listed

the

The

goods

in Canada is much
•

more sparingly
than in the U. S., and
expect the growth potential

employed
we

here has

been

not

Telephone
•

utilities,

•

bound

J

companies,

benefit

to

public

stores

from

and
are

larger

a

and wealthier population.
'

.

In the brief

of

World

If,

Canada

has

-

emerged in an economic sense, as
of the leaders among nations.

one

<

;

The

trend

tion

of

ten

,

■

manucon-

almost

without

inter-

Since the free world

quires

•

resources,

upward direction for

an

years,

ruption.

•

population, utiliza-

facturing, foreign trade, has
tinued in

-

in

natural

of

many

the

re-

materials

U. S. Investment in Canada

During
Dec.

31,

Commission

Royal

to

an¬

Canada's

on

Economic Prospects

*1.

is

It

especially'Significant

at

development that a Royal Commission has
been appointed to start a coastof

assessment

Canada's

economic prospects over the lcng-

The

term.

;

•

Commission

wide

given

.

has

into

dig

to

powers

been

aspect of the economy with

every

particular emphasis on the north¬
ern
regions.
Not only will the
,

Commission

.

;

energy

determine

to

the

in

but

eign,

are

rect

gain

in

portfolio

likely to be. It will also
to what extent

the

'Canadian

economy

far

how

economy

integrated

will be
with t ie

of the United States and
the

Canadian

prosperity

the level of pros¬
perity in this country.
depends

upon

Until

:

the

Gordon

Commission

report is presented lale next ,veav,
forecasts for the future will range
all the way
siasm

to

from outright enthu¬

sober

confidence,

but

I

suggest one of the best summaries
of Canada's future was contained
in

and

$827 million in the petroleum in¬

followed

$562

by

million

miscellaneous

manufacturing,
$347 million for mining.
A

and

direct investment in Canada may
be defined
as
a
Canadian
com¬

whose

stock

is

50% owned abroad

or

pany

corporated

The

concern.

such

branch

branches

at

4,253,

which

of

unin¬

an

foreign

a

number

of

companies

the

end

of

and

1953

was

3,235

were

con¬

foreign countries.
At
time, less than 2% of
the concerns having direct invest¬
Canadians

ard

have

taken

partners,

as

have, such

but

in

those

Ford, Stand¬

as

or
New
Jersey, Goodyear,
Pont, Westinghouse, Celanese,

du

Sherwin

Williams

and

Imperial

Chemical, to mention but
have

found

sound

that

public

Canadian

it

few,

a

engenders

relations

to

have

shareholders.

Although
foreign long-term capital invested
in

Canada

lion in

31,

increased

$5

over

bil¬

the nine years ended Dec.

1954,

sented

only

$2

inflow

an

billion

of

capital.

The

speech by Mr. James Coyne,
Governor of the Bank of Canada,
a

Canada, which was
during the period. In

billion

$36

well

a

The

own

90%

of

its

it

but

is

its

ship

capital

at

meeting held in Montreal
May.
Some of the conclu¬
sions of this speech are summar¬
ized as follows: (1) Even with an

Stock

portion

a

time

will

of

The

in

concerns

before

seek

the

pride
are

Canada.

justifiable

a

in

the

and

owner¬

which
re¬

and

manufacturing
dustries, and it is but human

ture

to

this

desire

that

ownership

in¬

should

lower

years,
a

than

that

of

the

last

10

it is not difficult to foresee

rise in

population

the next 20 years.

of 50%

(2)

over

A straight

projection of future increases in
productivity per man employed,
at

the

would

rate

of

produce

2%
a

per

gross

annum,

national

product by 1975 at 1955 prices cf
$55
the

billion,
amount

or

more

than double

indicated

for

1955.

(3) In any case, it is reasonable to

-expect that exports, though con¬
tinuing to be a major influence
in our economy, will decline in
importance relative to the whole
G. N. P.
(4) On the other side cf

stocks

be

of

Cana¬

accounted

in

es

Canada

with

the

total

proximately
the

rate

greater

at

as

of

the

billion;

increase

than

end

of

amounting

$1
in

1954,

to

ap¬

however,

today

the

is

early

far

post¬

because of the growing
interest
by American
investors
and speculators
in Canada's ex¬
war

Governor

a

of

my

the

capacity
Toronto

Stock

Exchange, I can hardly re¬
sist this opportunity to give a few
statistics on the largest Stock Ex¬
change in Canada, with a share
volume

larger

New York Stock
American
with

are

Canada

with
90

least

listed

total

traded

Stock

dollar

being

than

either

con¬

brokers.

stocks

New

are

York

and

Exchange,

and

steadily increasing.
suggest this is a good thing, as

I

wide

listing
facilities
afford
marketability and hence
broaden
a
company's ability to
raise new capital so necessary for
profitable expansion.
To

conclude

these

pointing

be

may

it

remarks,

the

up

that the Can¬
adian economy in great measure
is governed by and is the benefi¬
ciary of business conditions in
this

country, so that investors in
enterprises can often

Canadian

have the choice of
because

lows
at

lead from

the

second guess

a

economic pattern

the

hope in
able

been

dvnamic

S.

U.

values of

third

on

shares

this

Con¬

tinent

short

but

have

already

inves¬
justified by

by sophisticated

will

tors

few

place

taken

I trust that the confidence

displayed

be

amply

Joins Smith, Moore
LOUIS, Mo.
is

&

of

members

Midwest

—

509

the

Stock

Olive

New

Street,
and

York

Exchanges.

Stock

Ex¬

on
their backlogs, with the result
dammed-up demand are going into 1956.

Current

tainty
fever

joined the staff of King

Co.,

Inc.,

heavy

tonnage

pitch during

the first six months of the New
journal.
>

cludes this trade

of

Year,

con¬

New business incorporations during October numbered 10,698,
according to Dun & Bradstreet, Inc. This was a decline of 3%
September's total of 11,024, but represented a gain of 8.6%

from

the

over

9,852

It

year.

was

concerns chartered during the like month of last
the highest October total recorded since 1946.

There were

companies organized during the first
aggregate for the entire year
of 1954, and representing an increase of 23.6% above the 95,448
listed during the similar period of 1954.
months of

ten

the

In

passenger

in

117,955

new

1955, exceeding the

automotive

of 1955

car

production

the 7,000,000th
built last week amidst

from

United

industry

was

the

previous

Automotive

Reports"

week's

3.6%

a

States
decline

level

second-best

in

history.
"Ward's

Thus,

1955

the best year in

comple¬

The year-ago period netted

by early November topped the
6,674,933 set in 1950 and stands as

production

car

12-mont,hs

car

180,742 in the preceding week,

swelling the 1955 count to 7,002,467.
4,702,798 passenger cars.
all-time

174,256

counted

tions the past week compared with

of

record

history.

Supply and production problems prompted temporarily lower
volume a week ago, the statistical agency said, at Mercury and
Plymouth, plus several General Motors Corp. divisions. However,
virtually all car makers continue to operate near or above their
1955

all-time

and

18,500

held

highs.

sales for Nov. 1-10 averaged an estimated
units daily for the lowest opening 10-day rate in 12
Nov."l-i0 sales were 170,000

Meantime,

new car

However, according to "Ward's" the volume was principally
back by the Nov.; 3-4
dealers introduction at Chevrolet,

Buick

and

Oldsmobile plus production problems which delayed
inventory buildup at other car makers.
>
Thus in excess of 500,000 new car sales are in prospect for

normal

entire

November

last year, and
looked

compared

with

only

510,000 in October of 1955.

for

in

405,000
-

November

in

A total of 600,000 sales

December.

production last

At 919 in

than
of

|

week

at

stood

Woodruff

October, business failures were 12% more numerous
higher than a year ago. The number

in September and 6%

casualties

failures

when

there

according
The

occurred

with

42

index

McDonald Adds to Staff

other
casualties.

any

business
the

at

the

rate

Dun

Failure

an

October

67

in

&

of

month of October.
October since 1940

almost

Bradstreet

The

Index.

45

While this

CLEVELAND, Ohio—Robert L.
become connected with
McDonald
&
Company,
Union
Commerce Building, members of
Hays has

the New York and Midwest Stock

large

failure

rate

in November,
ago,

in

but

it

was

exceeded

only

once

1954.. The October rate

was

considerably

below

in the

compared

the

prewar

1940.

volume

5% to $34,777,000.

20% higher than last year, it was not

was

Accounting for 61%
first

as

five

years

of the October

of

operation

casualties, businesses in
continued to predominate

the failures.

among

There

Exchanges.

10,000
Book/'

in the October months of 1953 and 1952.

as

their

each

index

The liabilities of October failures edged up

(Special to The Financial Chronicle)

for

"Reference

projects monthly
annual rate and is adjusted for seasonal fluctua¬

yeaf

a

of

in

Dun's

postwar period,

Building.

than

1,111

were

to

postwar high for the

a

occurred

listed

mortality to
tions.

at

was

More

Failures

SPRINGFIELD, Mo. —Alice H.
&

that

requirements and inventory-building, plus uncer¬
the steel labor outlook will build up the market to

over

enterprises

(Special to The Financial Chronicle)

Merritt

a
formal
price boost, steel costs for many
skyrocketed., This is brought about through the

have

back

Joins King Merritt

Piatt has

hit.

Steel production this year will reach or exceed 116,000,000
ingot tons. But despite this, producers have been unable to cut

Ethel
Smith,

M.

with

now

Co.,

affected

27,752, slightly under
the preceding week's figure, but continued close to the best level
since the peak period of May-June this year when output reached
30,000 weekly.

(Special to The Financial Chronicle)

Moore

many

companies

without

Truck

ST.

of

necessity of costly conversion deals, buying from brokers and
obtaining emergency requirements from warehouses, "The Iron
Age" reports.

are

events of the future.

McBride

list

hard

been

Even

the

a

the border to the north and

was

a

month-to-month

increase

in

failures

in

all

in¬

Manufacturing and
retailing had the highest tolls since June, the commercial services
since January, while the mortality in construction was the most

dustry and trade groups except wholesaling.

Now With Prescott Co.
(Special to The Financial Chronicle)

in

severe

CLEVELAND, Ohio
W.

Cole

Prescott

Bank

is

now

—

Elizabeth

affiliated

with

&

Co.,
National
City
Building, members of the

The
among

a

year

and

a

half.

contrasting decline in wholesale failures

was

concentrated

food dealers, whose toll dropped to half that in the previous

month and the lowest level since 1952.

New York and Midwest Stock Ex¬

Steel

changes.

Output Set at 99.0% of Capacity In Holiday Week

Steel plate is approaching

famine levels, and platemakers al¬
closing books for the first quarter, "Steel" magazine, the
metalworking weekly, currently states. The situation makes plate
one of the leading candidates for spot price increases.
ready

With Sweney Cartwright
(Special to The Financial Chronicle)

COLUMBUS, Ohio—Stephen A.

ington

American

have

I have

demonstrate

to

changes which, in

years,

across

change. To October 31st, this total

the

steel users to cut back pro¬
include manufacturers
appliances, farm equipment, earthmoving equipment, railroad
car builders and
heavy tank fabricators. Job stamping shops also
The

of

months.

measure

some

shortage has forced

duction.

fol¬

somewhat later date.

a

I

our

authority.

The

obvious

when I remind you

hind




Canadian

Stock

in

the

Exchange or the
Exchange, and

trade

the number is

able to produce

more

S.

branches

Canadian
the

on

Sweney

sufficiently

U.

other

establishing

are

nections

to/ the New York Stock
Exchange, and only slightly be¬

trade

or

been

invest¬

opened branch¬
and

opening

At

picture, with increasing
economic
maturity we will be

the

York

And

markets.

Canadian

many

New

firms

with

Exchange

years

panding economy. In
as

at

was

cities in the past few years, while
more
and more U. S. brokerage

for

only 11% of the U. S. investment
in

Stock

ment dealers have

na¬

portion

a

dian.

Portfolio

the

on

virtually an allfollowing the pattern

York stock

finally,

and

natural

our

seat

a

Exchange

at

are

high,

Canadians

interest

corporations

developing

sources

of

Toronto

New

of

any

and

have

sale

Stock

leading
firms.

Exchange seat.

time

than

more

profits of the foreign
corporations with wholly-owned

a

annual rate of increase somewhat

last

of

brokerage

have

*

steel consumer, this will mean two price boosts in
industry is likely to adjust prices again after settling
steel labor, just as they have in the past, continues this

as

$90,500, compared to $87,000, the
the latest price for a New York

requirements,
of

nationals

own

obtain

resources

matter

a

number

States

Toronto

'

last

as

United

country which is able to generate
from its

Industry

charges

Extra

The

consumers

brokers

strip,

the

For

1956.

representing

and

sheets,

plates and flats.
boosted by several large companies.

important Canadian in¬
bankers

repre¬

in

ment

firms

vestment

the present

Canada

most

Exchange.
than

more

broader

trolled from the U. S. A., 801 from
United
Kingdom, and
217

in

Stock

only slightly

American

of

total

Canadian

than

more
as

and raw materials,

also what the future
both domestic and for-

and

bonds

—

Toronto

are

member

averages
a

vestment.
The largest inflow of
capital for direct investment was

dustry,

100

gain in di¬

a

investment, and about 25%,

balance being reinvested earnings.

to determine
to

increased

This $2 billion represents only 6%
of the total new capital invest¬

try
tied

Canada

of

way

including forest products and min¬
erals,

•

has

sources

demands,
...

seek

Canada

what
:

in

quarters represents

which

this stage of our national

to-coast

ended
S. in¬

years

1954, the total U.

from other

is reasonable

nine

approximately $5 billion to
$9V2 billion, or 91%. Of the total
increase, approximately three-

ments

>

the

ufactures,

for many years.

•

the

the

ticipate the growth will continue

the

on

Canada.

which Canada produces and man-

it

institutions

and

There

for

period since the end

War

by Cana¬

stocks—and all other forms of in¬

manufacturers

appliance

>

exhausted.

department

individuals

from

war.

shown

acquiring a share in the own¬
ership of businesses operating in

impres-

consumer

be

in

vestment

have developed in a most

use

will

Finance

'

sive

dian

busi-

company

Traders

interest

rolled

ex¬

records, and has
5,000,000 shares a

'

The

J 'v:

4

page

'

ings of all the Canadian chartered

wealth

more

from

The State of Trade and

Exchange

banks; also trust companies, which

and

Continued

evidence of the increas¬

an

years will disappear with grow¬
ing maturity, and with it the cor¬
responding deficit in the current

people

naturally have enhanced the

1

ported,
perhaps

evident

Sugar, and Canada Packers.
More

of the finished

has

joined

the

staff

of

Sweney Cartwright & Co., Hunt¬
of the

Bank Building, members
Midwest Stock Exchange.

are

The famine is being brought about by the rush of orders for

shipbuilding, military tank and freight car needs, the publication
reports.

These unpredicted orders are coming in simultaneously
Continued

on

page

48

46

43

(2230)

frork

Continued

weekly declines.

47

page

The State of Trade and

Industry

steadier customers, such as machinery and con¬

those from

Plate, in turn, must compete with orders for other steel

struction.

mill products,

The current

of

is that while

producers

plate

present

31

In

demand

great

also

\

is

fabricated

steel.

structural

fabricators are booked ahead eight and nine
er

in the third

1956, making more plate available from strip mills.
also may push the market price high enough to warrant

strip mill plate output.

more

Some

months, while deliv¬

extended to the point where they're restricting new or¬
Some are held to a four-day work week, this trade paper

ies

are

ders.

In

estimating for second and third quarter delivery, structural
are
considering the possible higher costs of plain

next year

for

of

rise in other costs.

As

result, fabricators' prices
substantially higher than those in the first half

are

1955 and escalator terms

a

protective.
looking ahead, too. They are encouraging
inquiries on bare needs for second quarter
Sheet mills are being offered far more tonnage than
are

more

Sheet producers are
customers to

scheduling.

in

send

handle, and they must allot their out-turn.
New records are being set in steel production.
More steel—
10,502,000 net tons—was made for ingots and castings in October
than in 3ny previous month. This boosted production for the first
10 months to a new record, 96,286,118 tons, "Steel" notes.
they

can

American

The

Iron

and

Steel

Institute

Wholesale

2,389,000

ingot

of

tons

steel

and

for

castings

99.2% of capacity and 2,394,000 tons (revised)
The

based

annual

capacity

For the like week

duction

compared

as
a

2,413,000 tons.

of

125,828,310 tons

month ago the

a

A

year

rate

of

as

was

the actual

ago

with

week ago.

industry's ingot production rate for the weeks in

on

Jan.

1955

1,

100.0% and

weekly

is

1955.
pro¬

production

placed at 1,915,000 tons

was

or 80.3%.
The operating rate is not
capacity was lower than capacity in 1955.
The percentage figures for 1954 are based on annual
capacity of

comparable

as

Jan.

of

The amount of electric energy distributed
by the electric light
and

power

estimated at

industry for the week ended Saturday, Nov. 19, 1955,
11,149,000,000 kwh., an all-time record high point
for the industry, according to the Edison Electric Institute.
The
previous
last

peak

when

This

level

was

established

10,925,000,000 kwh.

week's

were

output advanced

the

in

week

ended

kwh.;
in

it

increased
1954

1953.

1,832,000,000

week

and

Aug.

271,000,000 kwh. above that of

kwh.

19.7%

or

2,733,000,000

kwh.

10,878,000,000

above

the

over

the

like

com¬

for

grains fell

downward

week

uptrend

prices

and

generally
preceding two

the

of

Another

depressing factor
estimate at

crop

Government's

the

was

796,632

increase of 87,883 cars, or 12.4% above the
corresponding
increase of 69,574
cars, or 9.6% above the cor¬

responding week in 1953.

This represented

forecast, and
bushels.

an

Weakness

in

wheat

reflected

absence

general

a

The coffee market was nervous and unsettled, reflecting polit¬
ical developments in Brazil, and prices closed moderately below a
week ago.

Cocoa prices moved

irregularly in a narrow range. There was
buying influenced by the uncertain Brazilian political situa¬

tion but manufacturers and trade demand remained small.

house

stocks

of

cocoa

slightly and totalled 236,594 bags,
88,639 a year ago. Lard was
quite firm with Government buying of lard and pork a sustaining
influence. Hog prices tumbled sharply at the
close, reaching the
against 233,580

rose

week

a

earlier and

lowest level since February, 1942. Market receipts at 12 Miawest
terminals on Monday rose to 170,000 head, the largest for a single

in nearly 12

day

years.

from the preceding week's record best
level in history.
Last week the
industry assembled an estimated 174,256 cars,
compared with 180,742 (revised) in the previous week. The
past
week's production total of cars and
trucks amounted to

202,008
decrease of 7,121 units below the
preceding week's out¬

.units, or a
put, states "Ward's."

output fell below that of the previous week
output by 635 vehicles during the week.
corresponding week last year 133,969 cars and 22,043 trucks
car

cars, and truck

assembled.

the

week

United

States.

and 22,043

a

This compared

year

were

with

27,752 trucks made

ago.

trucks.
and

729

688

the week.

attributed to continued active demand for cotton textiles, and

heavy movement of the staple into the Govern¬
might result in a tight "free" supply situation develop¬

The

November

14,843,000 bales,

Official

estimate

compared

as

with

the

placed

the

previous

Failures
and

Moved

Slightly Upward Last Week

industrial

failures edged

week ended Nov. 17 from 207 in the

up

to

214

in

the

preceding week, Dun & Bradafreet, Inc., reports. While failures exceeded the 208 in the com¬
parable 1954 v/eek, they were not as high as the 1953 toll of
223,
and were 31% below the pre-war level of
308 in 1939.
Failures
from

with

161 last

liabilities

week, and

177

of
a

$5,000
year

or

ago.

more

increased

to

179

Small failures with lia¬

bilities under $5,000 fell to 35 from 46 but
remained above the 31
in the similar week of 1954.
Twenty-one concerns failed with

liabilities in

excess

of

$100,000, rising from 9 in the previous week.

Wholesale Food

Price

Index

Registers First Gain

In Seven Weeks
The

street,

wholesale food

Inc.,

turned

price index, compiled by Dun & Bradlast week following six successive

upward




1955

at

crop

estimate

of

13,-

928,000 bales.

products,

allied

priced

of

cellulose,

white

papers

products. The stock is

at

$46,375

share.

per

from

the

sale

will

added to the corporation's

be

general

funds and will be available for its

expansion

program. Initial proj¬
ects, estimated to cost approxi¬
mately $38,000,000, include addi¬
tional
book
paper
and sanitary

product

facilities,

building

foreign

two
for the

programs

of

sanitary

manu¬

products

in

Great Britain and

Mexico, and an
additional investment of approxi¬
mately $3,300,000 in common stock
Coosa

River

Subject

to

nomic

Newsprint Co.

business

and

conditions, plans

-

eco¬

being

are

formulated for the construction of
other
and

mills

for

conversion

manufacture

the

of

cellulose

wad¬

ding, and the installation of addi¬
tional

machines

paper

tions

addi¬

and

refinements to

and

its

pulp
manufacturing
and
processing
equipment.
These
products,
to
cost

estimated

an

000,000,

will

additional $37,-

require

further

fi¬

nancing, the nature and extent of
wnicn

been

not

nas

determined,
present in¬

except

it

is

tention

to

sell additional common

the

not

stock.
On

Sept.

30,

1955

Kimberly-

Clark acquired the assets of Inter¬
national Cellucotton Products Co.
On

14

spot

markets

last

week

Sales reported

totalled

289,800 bales,
with 326,400 the previous week and 376,200 a
year ago.
entries

in

the

week

ended

Nov.

4

CCC loan

bales

436,600

were

in

compared

against

388,800 in the previous week.

Stimulated Last Week By

Colder
Early Christmas Shopping

Tumbling temperatures helped
most

last
one

parts of the

of the earliest

a

shopping

was

underway in

a

year ago,

many

November

any

cities in

seasons on record.

on

Pacific

poration will consist of:
844

in

week

was

4

to

according to estimates by Dun & Bradstreet,

-f-3 to +7; Southwest +4 to +8; Northwest
+ 9 and Midwest and South -f6 to +10%.

-f-5 to

larger during the
week, and continued to surpass the high level of a year earlier.
The buying
of footwear and coats rose noticeably as wintry
weather spread across the Midwest and Northwest.
their

food

holiday festive fare, housewives in¬

purchases

last

week.

Pork

continued

one
of the most popular items since the recent
pork prices to the lowest levels in several years.

to

reductions

be
cut

durable goods held close to the high
level of recent weeks and continued to top the year-ago mark.
consumer

last

buyers

The total dollar

moderately exceeded the level of the corresponding period

year.

Department store sales
Federal

Reserve

on

Board's

a

country-wide basis

index

the

for

week

as

taken from

ended

Nov.

12,

1955, increased 9% above that of the like period of last year. In
preceding week, Nov. 5, 1955, an increase of 1% was reported.

the

For

the

four

recorded.

7%

was

weeks

For

12, 1955, an increase of 6% was
t,he period Jan. 1, 1955 to Nov. 12, 1955, a gain of

registered

Retail

sales

above

volume

the decrease would

run

that

in

sharply below the level of
of

Nov.

ended

a

of

New

1954.
York

year ago.

about

City

last

week

declined

Store executives estimated

10%? behind the comparable period

1954 when John Wanamaker started its

$5

value

par

common

stock.

Associated

in

the

underwriting
Kuhn, Loeb & Co.; The First
Corp.; Glore, Forgan &
Co.; Goldman, Sachs & Co.; Harriman Ripley & Co. Inc.; Kidder,
Peabody & Co.; . Merrill Lynch,
Pierce, Fenner & Beane; Smith,
Barney & Co.; Stone & Webster
are:

Boston

Securities Corp.; Union Securities

Corp.;

White, Weld & Co.;
Co.; and Dean Witter

Wertheim &

J. H.

Schwieger V. P. of

N. Y. Stock
Keith
New

Stock
the

go-out-of-business sale.

According to the Federal Reserve Board's index, department
store sales in New York City for the
weekly period ended Nov. 12,
1955, rose 7% above that of the like period of last year. In

H.

Exchange,

will

the

be

between

the

members

and

to

as

a

Vice

Exchange.

His

increase

Exchange

liaison

and

helping the

bership get

out

change

services

the most
facilities and

handling

their

improving

business

member

of

and

member

Creation

of the

recommended

view

office

new

by

Special

a

Committee

Rules

on

1954.

of

2% from that of the corresponding period of
*

was

Re¬
and

Procedures, headed by Homer A.
Vilas, senior partner in the Stock
Exchange firm of Cyrus J. Law¬
& Sons.

rence

Mr.

Schwieger,

Assistant

Vice

formerly

President

in

an

the

Department
of
Member
Firms,
joined the Exchange as a page in
August 1930. He entered the De¬
partment
1938

and

Manager
and

of

Firms

Member

has served

in

as

charge

Finance

and

of
as

in

Assistant

Conduct
Division

Manager.

W. E. Button Adds

rise

in
of

relations.

(Special to The Financial Chronicle)

a

Ex¬

and

the

recorded

its

with

mem¬

For

preceding week Nov. 5, 195d, a decrease of 8% was recorded.
the four weeks ending Nov. 12, 1955, an increase of 2% oc¬
curred.
For the period Jan. 1, 1955 to Nov. 12, 1955, the index

of

s

member firms

the purpose of

has

appointment

Schwieger

President -of
duties

Exchange

Funston, President of the

York

John

firm

Wholesale orders expanded slightly the past week, as
volume

of

announced

The demand for most types of apparel grew

As they prepared for the

$27,043,debt; and 7,668,322

funded

$15,500,-

record.

Coast

creased

.

& Co.

this month is at the rate of about

high for

new

to stir consumer interest in
period ended on Wednesday of

the

gift buying

Total retail trade

000,000,

in

nation

Christmas

week.

share.

Giving effect to the current fi¬
nancing, capitalization of the cor¬

shares

Export business in cotton remained small.

the

Commercial

Firmness

ing later in the season,

trucks.

Business

wadding

common

firmer trend following early

a

moderate advances for

sought to replenish stocks of Winter merchandise.

output last week was placed at 6,153 cars and 851
In the previous week
Dominion plants built 5,392 cars
trucks, and for the comparable 1954 week, 3,408 cars and

manufacturer

ment loan

28,387 in the previous

Canadian

value) of Kimberly-Clark

par

the belief that the

scored

Spending for

Last week the agency
reported there
in

($5

Corp.,

a
pro-forma basis, net earn¬
ings for the fiscal year ended
April 30, 1955 amounted to $20,289,541, equivalent to $2.79 per

Spot cotton prices developed
weakness and

Regional estimates varied from the corresponding 1954 levels
by the following percentages; New England +1 to —3; East and

3.6%

were

Ware¬

Inc.

Supply and Production Problems

s

de¬

mand, slow flour sales and continued lag in export business. Ex¬
ports of wheat including flour dropped sharply during October
were estimated at
10,500,000 bushels as against 17,300,000 dur¬
ing September, and 20,600,000 bushels in October, 1954.

8% above

Output Curtailed Last Week By

Output in the automotive industry for the latest week ended
Nov. 18, 1955,
according to "Ward's Automotive Reports," declined

In the

of

and

some

underwriting groupihekded

shares of additional common-stock

of

gain of 65,000,000 bushels over the October
increase of 7% above the 1954 crop of 2,965,000,000
a

The total dollar volume of retail trade in the

U. S. Automotive

November

3,183,^00,000 bushels.

week

3954 week, and an

by 6,486

An

by Blyth & Co., lifer 6ri: Nov. 22
placed
on
the
market
400,000

facture
years.

Weather and

1955, totaled

last

the

of the largest carlot receipts of the cash grain in seven

Loadings Hold to Lower Trend

Loadings foq the week ended Nov. 12,

off

following

Trade Volume

Last week

Blyth Group Offers
Kimberly-Clark Slock

Proceeds

influ¬

corn

the

Loadings of revenue freight for the week ended Nov. 12, 1955,
decreased 12,077 cars or 1.5% below the
preceding week, according
to the Association of American Railroads.
cars, an

By

Corn went sharply lower as the week closed under the
ence

i

Car

Index Characterized

Price

weeks.

6

produced.

the previous week, when the actual
output stood at

parable

Commodity

Demand
turned

was

1, 1954.

Electric Output Set An All-Time High Record Last Week

was

pound of

per

commodity price level again showed little change
although individual price movements during the week were
mixed. The daily wholesale commodity price index, compiled by
Dun & Bradstreet, Inc., registered 274,69 on Nov. 15, as against
274.32 a week previous and 279.15 on the like date last year.

because

124,330,410 tons

price

The general

the

that

announced

operating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry wil be at an average of 99.0% of
capacity for the week beginning Nov. 21, 1955, equivalent to

Thursday, November 24,1955

.

and

fabricators

a

a

foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.

observes.

materials and

time

Mixed Movements the Past Week

of

quarter

at this

$6.88

raw

1957.

drop its take of cold-rolled sheet substantially

Demand

with

compares

Higher in wholesale cost the past week were wheat, rye, oats,
barley, hams, bellies, butter, cottonseed oil, eggs and potatoes.
Lower in price were flour, corn, beef, sugar, coffee, beans, steers,
hogs and lambs.

Fabricators take comfort in predictions that the auto industry
may

number

rn:' *«» er

to $6.04, from $6.00 the

The index represents the sum total of the

the

fabricators, it is probably temporary.
Of the major platemakers contacted by "Steel," only one plans
any addition to capacity.
Any addition planned would have little
before

rose

drop of 12.2%.

year ago, or a

it adds.

consensus

situation may be painful to

-effect

The Nov. 15 index

..

«***- u-'-'j.

* a aws#

,mk a"

wt i.

previous week, which marked the lowest level in more than five
years.

The

n«/J iELStftmaum*+***!

The Commercial and Financial Chronicle

(2232)

with

T'ha fAwniovfinJ

■

COLUMBUS, OHIO
Silverman is
ton

&

now

—

iLeon

M.

with W. E. Hut-

Co., 50 East Broad Street.

Volume

182

5484

Number

.

.

The Commercial and Financial Chronicle

.

The

Indications of Current

week
Latest

AMERICAN

IRON AND

STEEL

following statistical tabulations

latest week

Business Activity
«,

(2233)

Previous

Week

INSTITUTE:

month ended

or

Month

Week

(percent ol capacity).

Nov. 27

.

§99.0

*99.2

Ingots and castings (net tons)

80.3

2,413,000

1,915,000

BUILDING

§2,389,000

*2,394,000

Total

'

AMERICAN
K

PETROLEUM

Cruoe oil

-

INSTITUTE:

condensate

and

i
to stills—dally

Nov. H

Crude runs
average
Gasoline output,(bbls.)—
Kerosene output"(bbla.)

;
f

Distillate

oil

fuel

6,808,050

Nov. 11
———.---Nov. 11

(bbls.)

117,553,000

—Nov. 11

output (bbls.)

6,777,100

6,713,700
7,357,000

6,883,000

26,433,000

25,565,000

24,161,000
2,197,000

2,278,000

2,311,000

2,059,000
10,897,000

Nov. 11

11,091,000

Residual fuel oil output Kbbls.)——
Nov. 11
J!
Stocks at refineries, bulkUermlnals, In transit, In pipe lines—
i
•; ii'\
Finished and unfinished gasoline' (bbls.) at
-Nov. n
)
Kerosene (bbls.) -at_-^-„.
—Nov. 11

7,825,000

8,076,000

7,639,000

7,850,000

152,084,000

152,004,000

150,480,000

147,896,000

35,762,000

36,444,000

37,223,000

150,606,000

151,988,000

148,849,000

36,775,000
136,159,000

45,761,000

45,932,000

47,288,000

56,068,000

-

;

Distillate fuel.oil

*

Residual

*.i

fuel

(bbls.)<.at—

11,691,000

*

'

Additions

CIVIL

ENGINEERING

CONSTRUCTION

NEWS-RECORD: 0 r"T.-

t

'

'

Nov. 12
of cars)—Nov. 12

(no.

ENGINEERING

—

Month

Ago

$3,903

and

I

alterations.

Nonresidential
Industrial

11,409,000

1,517

1

(nonfarm)

_r—
.

808,709

827,245

708,749

681,992

693,360

684,252

616,733

Other nonresidential

•

-

and

<

\

-

24
554

..

170

■

308

202

'
*

-

101

'

■.

207,

.

89

-113

200
:

'

182

r70.;

45

59

.•

45

-49

22

'22

'

recreational.—

22
30

~

31

•

33

construction

utilities

Railroad

■.

.V.

'

199 *

:

Miscellaneous
Public

'211

69*

Educational

/

220

....

"*

building..^

.Religious

Farm

719

206

..

Hospital and institutional

796,632

730

105

.

garages

1,195
102

31

■m

311

buildings and warehouses.^——

Stores, restaurants and

-

1,321
,

116

31

building

2;420

1,370

.

109

Commercial

_f>vi

"

2,805-

1,455

1,315

$3,503

$4,048

2,724

Nonhousekeeping

RAILROADS:

AMERICAN

freight loaded (number of cars)
freights-received lrom connections

ttevenue

Re/enue

i-

.

OF

Year

Month
OF

millions):

building (nonfarm)
dwelling units

Social

ASSOCIATION

f

(in

of that date:;

are as

Previous

construction-

Office

-—Nov. 11
Nov. 11

—

oil Xbbls.) ^at

October

DEPT.

either for the

are

Latest

construction

New

6,220,150

7,561,000

1

25,806,000

i

r:

of

S.

Residential

gallons each)

42

new

Private

(bbls. of

output—dally average

of quotations,

cases

CONSTRUCTION—U.

LABOR—Month

Nov. 27

—

in

or,

Ago

100.0

Equivalent to—
Steel

Dates shown in first column

that date,

on

production and other figures for tli6

cover

Year

Ago

-

indicated steel operations

month available.

or

29

32

,

:

.

';

v.

23

113

137

126

415

420

407

32

34

38

•

~

."

U.

Total

'

,

construction

S.

Private

Nov. 17

—

Nov. 17

construction

Nov. 17

Public construction
State

and

$401,695,000
307,848,000

municipal.

Federal

,v

COAL

OUTPUT

S.

(U.

BUREAU

$267,920,000

$419,915,000

162,168,000

257,600,000

$301,779,000
182,534,000

93,847,000

105,752,000

162,315,000

119,245,000

62,329,000

62,163,000

106,261,000

78,547,000

31,513,000

43,589,000

56,054,000

40,698,000

Nov. 12
Nov. 12

9,810,000

*10,180,000

9,800,000

8,861,000

565,000

455,000

500,000

624,000

I

DEPARTMENT

U

STORE

EDISON

ELECTRIC

tiectric

AVERAGE

FAILURES

AGE

—

DUN

r'inlshed

steel

(per

Pig Iron

(per

128

gross

214

207

239

Nov. 15
Nov. 15
Nov. 15

J.

M.

Export
Straits
Lead

.

-

refinery

tin

(New

5.174c

5.174c

5.174c

4.797c

$59.09

$59.09

$59.09

$56.59

$45.17

$44.83

$44.83

(New

Lead

(St.

Zinc

(East

MOODY'S
U. S.

York)
Louis)
St.

BOND

at

at

at

PRICES

DAILY

corporate

$33.83

Nov. 16
Nov. 16

43.025c

42.800c

42.875c

29.700c

43.625c

43.425c

43.325c

32.000c

Nov. 16

98.375c

96.125c

96.000c

91.500c

Nov. 16

15.500c

15.500c

15.500c

15.000c

Nov. 16

15.300c

15.300c

15.300c

14.800c

Nov. 16

13.000c

13.000c

13.000c

11.500c

Nov. 22

94.93

Nov. 22

107.80

106.7

105.8

111.3

110.5

114.1

112.6

M6.0

120.4

120.0

119.5

130.5

130.5

111.2

110.8

125.2

123.8

103.6

103.2

106.0

,

115.8

119.5

117.4

...

104.6

103.4

104.3

105.8

105.5

106.4

99.5

97.4

99.0

118.1

117.6

116.5

91.0

90.5

Other foods

Housing

95.33

95.83

99.41

107.98

107.62

110.88

:

Rent
Gas

and

electricity

fuels

Household

operation

105.00

Footwear

106.56

106.04

109.06

Other

107.98

108.16

107.98

111.25

apparel
Transportation

Nov. 22

109.06

109.24

108.88

112.19

Medical

2.81

2.54

Reading and
Other

AVERAGES:

Public

Utilities

Industrials

MOODY'S
NATIONAL
uroers

Group

3.30

3.12

3.08

3.10

2.88

(tons)
of

orders

at end

(tons)

AND

=

STOCK TRANSACTIONS
LOT

DEALERS

SPECIALISTS

AND

sales

by dealers

Number of shares

Dollar

ON

EXCHANGE

(customers'

Y.

sales

Customers'

other

sales

Total

L.401.4 ■•D'.'V#

J.'

Cotton

247,513

258,396
94

Nov. 12

680,461

725,673

653,346

433,268

-Nov. 18

107.06

107.12

106.82

Refined

973,161

2.480,280

950,206

$50,879,324

$36,907,987

$44,380,898

Oct. 29

784,328

741,158

1,673,878
11,216

964,419

4,634
736,524

1,662,662

957,485

$38,548,591

$36,935,557

$93,758,556

$41,946,630

Oct. 29

208,600

353,790
353,790

Linlers

SALES

ON

THE

STOCK

ROUND-LOT
MEMBERS

OF

167,970

385,050

Nov. 29

409,290

423,860

1,171,480

N.

Y.

Hull

286,220

TRANSACTIONS

FOR

ACCOUNT

OF

specialists in stocks in

407,330

373,800

700,930

Oct. 29

9,217,160

8,772,270

21,984,950

10,460,430

Oct. 29

9,624,490

9,146,070

22,685,880

10,873,800

413,370

on

the

off the

Oct. 29

1,181,490

1,143,480

3,603,300

1,181,360

Oct. 29

209.440

193,280

334,600

207,320

—

Short sales

sales

sales

(1947-49

=

SERIES

—

U.

S.

DEPT.

products——

Processed

♦Revised
of

Jan.

1,

tNumber

figure.

348,692

1.2£2,958

494,196'

212,„10

532,2jQ

916,780

345,446

1,139,945

87,689,000'*"

,955,000

70,954,000

159,431,000

,391,000

165,418,000

103,998.000

,754,000

115,956,000

273,143,000

287, 292,000

825,377,000

96,846,000

57 996,000

108,518,000

101,707,000

105, 137,000

154,430,000

150,240

169,703

204,976

233,349

103,409

260,531

252,812

136,796

246,833

60,332

45.750

74,434

106,390

47,922

112,587

91,808

43,826

119,170

77,223

159,410

154,257

66,834

176,604

138,880

119,694

148,725

397

234

758

1,170

341

2.332

1,007

420

2,245

2,796

1,786

3,752

1,831

383

2.277

821

897

1,620

235

INDEX

AGRICUL¬

OF

of

Sept.

—

—

—

—

—

—

^Includes

not




and

990,600

3,615,780

1,197,920

Feed,

248,900

229,470

466,580

Food

343,010

Dairy

Poultry

462,600

1.291,274

478,325

1,874,000

5,044.458

2,008,390

Oct. 29

284,390

256,390

492,930

292,690

Oct. 29

1,679,157

1,698,850

4,999,604

1.738,645

Oct. 29

1,963,547

1,955,240

5,492,534

2,031,335

crops

:

—

—:——

—.

1.

Tobacco
Livestock

and

—

products.—

products

——

animals

and

eggs

—

Wool

U.

S.

GOVT.

Total

STATUTORY

of Oct.

—As

at

Nov. 15

1.

reported

109.7

87.1

93.0

98.6
74.5

75.6

79.4

85.9

119.1

119.1

118.6

114.5

foreign

introduction

111.2

85.2

Nov. 15

crude

1954 basis of 124,330.410

sfnce

111.2

84.3

.—Nov. 15

—

of

111.1

of

runs.

§Based

on

99.0

new

tons.

Monthly Investment

annual

99.8

capacity

of

125,828,310

time

Total

444

245

257

249

254

250

251

202

191

162

226

240

297

5281,000,000

$281,000,000

$281,000,000

279,817,534

277,476,106

278,752,052

48,069

47,725

33,615

$279,865,604

$277,523,832

477,740

478,855

531,100

$279,387,864

$277,044,977

$278,254,566

1,612,135

3,955,022

2,745,433

274

LIMITATION

may

be outstanding
——

,

obligations

not

owned

by

the
-—

gross

debt

public

and

guaran¬

teed obligations
Deduct—other

outstanding

public

debt

obli-

gations not subject to debt limitation
Grand
Ealance

Plan.

437
237

(000's omitted):

31

face amount that
any

DEBT

427
240

Outstanding-

103.8

tons

233

181

484,020

490,597

214

248

355,090

1,872,724

217

173

141

585,480

Oct. 29

210

129

Potatoes

974,578

Oct. 29

178

276

501,050

424,355

292

174

213

240,260

1,183,944

277

Oil-bearing

442,334

417,730

247

285

246

276,740

435,947

246

228
211

210

311400

53,970

,—

233

229
230

225

323,690

107,330

hay

and

grains

51,000

44.870

fresh

Fruit

534,480

54,650

vegetables,

grains

18,240

_

foods

822,000 barrels

15:

—

Treasury

other than farm

orders

DEPT.

—

Cotton

Gi'Tontppd

1955, as against Jan.

of

3,281,180

1,252,380

100):

foods

commodities

S.

FARMERS

products

222,020

Meats
All

-

OF

Commodity Group—
All commodities.
Farm

1,059,100

for account of members—

purchases

NEW

farm

20,300

Oct. 29

sales

BY

TURE—1910-1914=100—As

256,440

Oct. 29

PRICES,

RECEIVED

Meat

1

Total round-lot transactions

—

—

.

Oct. 29

Oct. 29

Short sales

LABOR

*

1,065,530

(1,000 pounds)—

Sept. 30

Oct. 29

——Oct. 29

t

sales

986,770
1,196,210

floor—

purchases

WHOLESALE

——

——

Grabbots, etc.

Commercial

Oct. 29

sales

Other

•
—

NUMBER —U.

floor—

purchases

transactions initiated

Total

106.5
120.1

—

Crops

Oct. 29

Initiated

Total sales

Total

(1,000-lb. bales)

:

Sept. 30

TRICES

All

*

Total

i.,

Produced

which registered—

sales

Other

113.5

106.3
120.4

MEM¬

Short sales

Total

115.8

106.7

120.6

sales—

Other transactions

Other

116.6

92,600
—-

Shipped

purchases

Other

125.7

bales)—

30

....—

Fiber

Motes,

(SHARES):

Short sales

Total

———

(running

Stocks

sales

Other

—

Sept. 30

(tons)

Produced

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total

i.

(tons)

Shipped

STOCK

Oct. 29

of

I
—

Produced

TRANSACTIONS

sales

Transactions

Sept. 30..

(tons)

Stocks Sept.

Stocks

208,600

....

(tons)

(tons)

Shipped

385,050

—'
:

(pounds)

(tons)

Stocks

,,(i

167,970

126.4

128.0

Meal—

Shipped

6,934

779,535

Oct. 29

Oct. 29

Sept. 30

...

Produced

Oct. 29

125.4

Hulls-

dealers—

by

and

Stocks

991,607

,

(pounds) Sept. 30
(pounds)

Shipped

$51,206,914

90.9

125.3
128.2

Oil—

Produced
Oct. 29

tvK

—

(pounds)

Consumption

COMMISSION:

122.4

of

Jj;L

j

(pounds)

Produced

Cake

4,794

....—i—.

Sept. 30

Oil—

Stocks

106.48

107.9

PROD¬

(tons).

_!

(tons)

(tons)

Produced

—Oct. 29

SEED

COMMERCE—Month

Shipped (pounds)

STOCK

Oct. 29

COTTON

OF

Received at mills

Crude

102

-

AND

.

128.8

1

Seed—

Stocks

}

>

SEED

Crushed

411.2

272,234

Short sales

Other

3.10
3.05

291,411

-

STOCK

AND

round-lot

Total

3.28

3.23

COTTON

Oct. 29

ACCOUNT

SOUND-LOT

3.27
3.21

400,2-

103

sales

ROUND-LOT

FOR

3.22

297,935

—

by dealers—

purchases

EXCHANGE

3.39

437,655

Number of shares

TOTAL

3.36

102

Short sales
Other

3.38

295,930

Number of shares—Total sales

Round-lot

September:

249;427

Dollar value

Round-lot-sales

UCTS—DEPT.

3.45

purchases)—f

—

short

3.13

3.59

Stocks

value

Customers'

3.03

3.31

Nov. 12

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

recreation

goods and services

3.19

INDEX—

N.

care

3.58

ODD-LOT ACCOUNT OF ODD-

FOR

EXCHANGE —SECURITIES

Odd-lot

PRICE

100

:

3.17

3.22

4

care

3.28

Nov. 12

of period

REPORTER

DRUG

Nov, 12

:

3.19

398.4

£2

girls'

3.59

^

activity

AVERAGE

!>49

s »

ASSOCIATION:

(tons)-—:

Percentage

OIL, PAINT

—Nov.

;

boys'

and

3.29

3.28

Nov. 22

„

INDEX-wl-ii

PAPERBOARD

received

Unfilled

Nov. 22

—

Group..

Production

1

2.85
3.28

Nov. 22

~

COMMODITY

and

Personal
2.88

3.29

...

Housefurnishings

106.21

Nov. 22

fuel oil

and

Nov. 22
Nov. 22

Nov. 22

home

at

Women's

Group

12

1947-49=10©—

—

vegetables

Men's

Railroad

16

110.2

and

110.70

3.10

61

15

Fruits

112.56

Nov. 22

19

56

122.6

102.63

Aaa

88

36

54

105.7

107.44

—.—

100

32

106.5

102.80

DAILY

97

111.6

107.98

YIELD

389

102.9

102.63

corporate

510

103.5

107.80

BOND

475

31

112.4

Nov. 22

S. Government Bonds

101

124.1

Nov. 22

u.

131

124.0

Apparel

Average

61

134

bakery products
Meats, poultry and fish
Dairy products

115.43

MOODY'S

75

11417

109.60

Group

193

33

69

110.0

111.25

Industrials

223

28

111.2

109.97

Group

212

114.5

111.62

Group

105

114.9

109.60

Utilities

23
390

42

110.4

111.25

'

1,083

21

373

111.6

Nov. 22

Public

INDEX

home

at

Nov. 22

.

1,243

21

351

September:

Aa

Baa

as

PRICE

Aaa

Railroad

enterprises
development

items

Solid

A

•

public service

Food

AVERAGES:

Government.Bonds

Average

water

Cereals and

at

Louis)

*.

public

Month of
All

QUOTATIONS):

at

1,179

208

Food

at

York)

other

building—

.'

Conservation and

Electrolytic copperDomestic refinery

and

Miscellaneous

9,317,000

CONSUMER

ton)_

&

10,644,000

PRICES:

lb.)

(E.

10,878,000

"12

•

Institutional

Military f^ilities
Highways

130

56
313

12

42,

Educational
and

65
321

11

i.__—

construction

All

(per gross ton)

METAL PRICES

128

11,149,000

Nov. 17

private,

Hospital

,

323

'

Other nonresidential
142

60

:

Nonresidential building
Industrial

&

INC

COMPOSITE

Scrap steel

INDUSTRIAL)

AND

telegraph.—

utilities.—

Residential building

Sewer

—Nov. 19

kwh.)

000

(COMMERCIAL

BKADSTKEET,
IRON

Nov. 12

100

=

and

public

other

Public

INSTITUTE:

(in

output

All

INDEX—FEDERAL RESERVE

SALES

SVSTEM—J047-40

Other

MINES):

OF

cJiiumuious coal and lignite
(tons)
Pennsylvania anthracite (tons)

•V

Telephone

under

total

face

outstandihg

amount

above

of

obligations,

authority-

$278,785,667
;

issuable

,

i

50

The Commercial and Financial Chronicle

(2234)

.

.

Thursday, November 24,1955

.

* INDICATES

Securities
Allied-Mission Oil,
Oct. 3

Now in

680 shares of

Inc., Tulsa, Okla.

(letter of notification)

598,800 shares of common
etock (par one cent). Price—50 cents per share. Proceeds
—For acquisition, exploration, drilling and development
cf leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co.,

address.

same

Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
offered in units of one share of each class of stock. Price

—$11 per unit. Proceeds—For construction of hotel and
related activities and for contingencies, stock in trade,
and working capital. Underwriter—None.

^ Alpha Plastics Corp. (12/5)
Nov. 18 (letter of notification) 300,000 shares of class A
stock (par 10 cents).
Price—$1 per share. Proceeds—
$90,000 to redeem the preferred stock; $18,100 to be
payable to stockholders for advances heretofore made
to company; for payment of current obligations, etc.; and
for working capital.
Office—94-30 166th St., Jamaica,
N, Y. Underwriter—J. E. DesRosiers, Inc., New York.
•

American

Greetings Corp. (12/5-9)
Nov. 14 filed 200,000 shares of class a common stock (par
$1). Price—To be supplied by amendment. Proceeds—
For general

corporate purposes, including construction.
Underwriter—McDonald & Co., Cleveland, Ohio.
Hide

American

Leather Co.,

&

shares

of

outstanding
stock

stock

48,530

are being offered
in exchange for
shares of 6% cumulative preferred
.

the basis of $50 of debentures and 2*4 shares of

on

stock for each preferred

common

share

(this offer

ex¬

pires on Dec. 1, 1955, unless extended). The remaining
500,000 shares are under option to certain persons at $4
per share.
Underwriter—None.
Motorists

American

30 filed 200,000

Sept.

at least

Plywood, Inc. stock and desires to acquire

Automatic Tool

manufacture

Corp.

sale

and

Co.

Insurance

shares of capital

v

*

;

v

the

"grip-lock"

driver

and

Office—137 Grand

St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

N. Y.

v'lVJ;;-

Baltimore Gas & Electric Co.
filed

10

$30,000,000

of

sinking fund bonds due 1990.
loans

for

and

first

gy /

Alex.

and

Brown

be received
•

Basin

Sept.

&

(11/29)

refunding

Underwriter

—

To

be

Sons

(jointly).'Bids—Expected to

Nov. 29.

on

Natural

19

(letter of notification) 750,000 shares of com¬
(par five cents). Price—40 cents per share.
Proceeds—For expenses incident to oil and gas activities.
Office—109

Columbia

W.

Caco

St., Aztec, N. M. Underwriter—
Corp., New York, N. Y.

Securities

Big Chief Uranium Co.,. Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of
assessable

Underwriter—Investment Service Co., Denver, Colo.

North

Virginia St., Reno, Nev. Underwriter—Mid
Securities, Inc., Salt Lake City, Utah.

being offered for subscription by stockholders of record
Oct.

26, 1955,

the basis of

share for each five
shares held; rights to expire on Dec. 1. Price—$8 per
share. Proceeds—For general corporate purposes. Office
—Chicago, 111. Underwriter—None.
Arizona

on

Public

one new

Finance

Co.,

Phoenix,

Ute Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Underwriter—James E. Reed
Big

Co., Inc., Reno, Nev.

Ariz.

Blachhawk

16 filed 78,006,081 shares of common stock to be

Sept.

offered

for

subscription

holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
by

talesman of the insurance firm.

-

-

ceeds—For construction of
the

from

Worcester

bridge across Sinepiixent Bay
County (Md.) mainland to Assa¬

&

at

$5

chased

share,

per

by

Town

share.

29,473 shares are to be pur¬
Country Insurance Agency, Inc.
Proceeds—To acquire through merger
and

and

the Blackhawk Mutual Insurance Co.

111.

Underwriter

Chicago, 111.

—-Arthur

"

,

M.

Office—Rockford,
Krensky & Co., Inc.,

I "

•

870,000

be offered

Bonus

Proceeds

debentures.
and

$500).

Price—At

Proceeds—For

Underwriter—None.
•

Atlanta

Nov.

15

Gas

filed

(in

par

denominations

general

,

corporate

of

$100

purposes.

.

Uranium, Inc., Denver, Colo.
Oct. 28 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬

preferred
stock (par $100). Proceeds—To repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: White, Weld
& Co. and Kidder, Peabody & Co. (jointly); The First
Boston Corp.; Stone & Webster Securities
Corp.; Shields
& Co.; Equitable Securities Corp. and Union Securities
Corp. (jointly). Bids—To Be received up to 11 a.m.(EST)
on

Dec. 7 at 90 Broad St., New

Atlas

York, N. Y.

¬

Industries,

Inc., Houston, Texas
(letter of notification) 200,000 shares of

Oct.

10

mon

stock

ceeds—To

com¬

(par one cent). Price—$1.50 per share. Pro¬
purchase dies and materials and for working

capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,
Texas.

....

Atlas

Plywood Corp., Boston, Mass.
Nov. 14 filed 100,000 shares of common stock
to

be

offered

shares of

in

common

(par $1)
exchange for the outstanding 291,431
stock of Plywood, Inc. at an exchange

ratio to be determined

later. Atlas

presently

Canuba

Manganese Mines, Ltd.
Oct. 27 filed 500,000 shares of capital stock (par $1Canadian). Price—$1.50 per share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,

owns

496,-

New

Underwriter

—

Baruch

Brothers

&

Co.,

Inc.,

York.

warrant

chase

Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc.

Underwriter—Mountain States Securities, Inc., Den¬

ver,

Colo.

Carolina

Casualty Insurance Co., Burlington, N. C.
Nov. 2 (letter of notification) 30,000 shares of class B
common
stock (par $1) to be offered for subscription
by stockholders. Price—$10 per share. Proceeds—For
working capital, etc. Office—262 Morehead St., Burling¬
ton, N. C. Underwriter—None.
^Cascade Natural Gas Corp. (12/9)
Nov. 18 (filed $3,589,450 of 5%%
interim notes, due
Oct. 31, 1960, and 71,789 shares of common stock (par
$1), to be offered in units of $50 of notes and one share
of stock.
Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, to repay bank loan
Co.,

New

construction.

York;

First

Underwriters—White, Weld &
California Co., San Francisco,

Calif., and Blanchett, Hinton & Jones, Inc., Seattle, Wash.
Century Acceptance Corp., Kansas City, Mo.
Nov. 7 filed $750,000 of participating
junior subordi¬
nated sinking fund 6% debentures due Nov.
1, 1970 (with
detachable

common

stock

purchase warrants for

a

total

of

22,500 shares of common stock, par $1 per share).
100% (in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.
Price—At

•

Century Engineers, Inc.

(11/29-12/1)

Nov.

4 filed 74,000 shares of common stock
(par
Price—To be supplied by amendment. Proceeds

—

expansion

of

subsidiary

and

working

capital.

Burbank,

NewYork.

Boston

Pittsburgh

Chicago

Philadelphia

San Francisco

Private IVires




to

all

offices

Cleveland

$1).
For

Office—

Calif. Underwriter—Morgan & Co., Los
geles, Calif, and S. D. Fuller & Co., New York."
Chaffin

'

An¬

Uranium

Corp., Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share).

Proceeds

—

For

expenses

incident

to

.

one.

(warrant holders will be. entitled

to

pur¬

class A share at 62% cents per share). Price—

unit.

per

current

Proceeds—For working capital and to
expansion and liquidate notes and liabili¬

ties. Office—522 Felt Bldg., Salt Lake City, Utah. Under¬

writer—Cayias, Larson, Glaser & Emery, Inc.,

same

city.

Cisco Uranium

Corp., Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
stock

(par

Price—Three

cent).

one

mining

cents

share.:

per

Office—2630 South

expenses, etc.

West, Salt Lake City, Utah.
Securities, Inc., Denver, Colo.

Underwriter—Denver

Citizens Credit Corp.,
Washington, D. C.
Sept. 27 (letter of notification) $245,000 of 6% subordi¬
debentures

due

1975

2,450 shares of class A
B

common

capital to

stock).

and

Price—99%.

subsidiaries.

490

shares of class

Proceeds—To

Office—1028

W., Washington, D. C.
ren &
Co., same address.
•

(with warrants to purchase

common

N.

supply

Connecticut

Ave.,

Underwriter—Emory S. War¬

Clad-Rex Steel Co., Denver, Colo. (11/28)
24 filed 400,000 shares of common stock (par

Aug.

cents).

Price—$1.25

short-term

share.

per

obligations,

etc.

and

Proceeds—To

10

repay

for

working capital.
Underwriter
Mountain States Securities Co.,
Denver,
Colo.; and Joseph McManus & Co., New York, N. Y.
—

Nov.

9

(letter of notification) 2,575 shares of common
Price—$10 per share.
Proceeds—For new ma¬
chinery, etc. Underwriter—Spencer, Zimmerman & Co.,
Inc., Columbus, Ga.
stock.

Colohoma

Uranium, Inc. (12/15)
2,500,000 shares of common stock (par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for
general corpo¬
Nov.

rate

9 filed

purposes.

mining

Office—Montrose, Colo. Underwriters—•
Corp., New York; and Shaiman & Co.,

General Investing

Denver, Colo.

Nov. 9

'

"

T

.

Uranium Co.,

Inc., Canon City, Colo.
(letter of notification) 300,000 shares of common
Price—At

par

mining operations.

($1

per

share).

Proceeds—For

Underwriter—None.

Columbus & Southern Ohio Electric Co.

(12/6)

Nov.

15 filed 250,000 shares of common stock
(par $5).
Price—To be supplied by amendment. Proceeds—To re¬
duce bank loans.

New

new

to

to be offered in units of five shares of class A stock and
one

Caribou Ranch

and for

,

.

Office—1154 Bannock St.,
Underwriter — Mid-America Securities,

Canada.

Light Co. (12/7)
shares of cumulative

30,000

10 cents)

Buying Service, Inc.
(letter of notification) 300,000 shares of class A
common stock
(par 25 cents) and 60,000 class warrants

stock.

Nov. 16

—

Charge

Denver, Colo.
Inc., Salt Lake City, Utah,

Philadelphia, Pa.
(letter of notification) $250,000 of 6% renewable

(par

of

Oct. 17

ir Coltex

Corp.,

stock

share

California Co., Inc., San Francisco,
Calif.; and Blair & Co., Incorporated, New York. Change
Name—Formerly Continental Production Corp. (see
below). 1 Offering—Indefinitely postponed. *

ceeds—For mining expenses.,

Acceptance

common
one

preferred stock and
of common stock. Price—$20.20 per unit.
For production
of production payments.

shares

two

None.

y

shares of

in units of

Underwriters—First

teague Island. Office—Washington, D. C. Underwriter—
+ Associated

■

ic Cole Engineering Corp.

Casualty Insurance Co.

Oct. 28 filed 200,000 shares of common stock (par $2.50),
of which 170,527 shares are to be publicly offered to

at $4.50 per

-

Assateague Island Bridge Corp. (Md.)
Oct. 7 filed 100,000 shares of 5% cumulative preferred
stock to be offered primarily to members of the Ocean
Beach Club, Inc. Price—At par ($10 per share).
Pro¬

Fire

and

nated

Big Ridge Uranium Corp., Reno, Nev.
Oct. 19 (letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
America

•

2nd
non¬

(par 10 cents). Price—20 cents
Proceeds—For expenses incident to mining
Office — 441 Thatcher Bldg., Pueblo, Colo.

per share.
operations.

Office—810 Deseret Building, Salt Lake
City,
Securities Co., same CityJ
;

Underwriter—Utah

Proceeds—For

stock

common

ISSUE

Co., Las Vegas, Nev.
Oct. 18 filed (by amendment) 435,000 shares of $1.20
cumulative preferred stock (callable at $20 per
share)

meet

Corp. >(11/28-12/2)

stock

mon

REVISED

•

$2.50

Gas

ITEMS

of

mortgage
Proceeds—To repay bank

construction.

new

/

determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and The
First Boston Corp. (jointly); Harriman Ripley & Co. Inc.

—206

(par $3)

stock

of

Utah.

PREVIOUS

Channel Oil

Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1).
Price—$5 per share.. Proceeds—To set
up a factory and purchase equipment and machinery for

Nov.

activities.
t

holdings of such stock to 80%.

screw.

•

additional 133,809 shares in order to bring its

an

Lowell, Mass.

Sept. 28 filed $2,426,500 of its 5% convertible subordinate
debentures due Oct. 1, 1975 and 609,193 shares of com¬
mon stock (par $1), of which all the debentures and 109,193

Registration

ADDITIONS

SINCE

Underwriters—Dillon, Read & Co. Inc.,
York; and The Ohio Company, Columbus, Ohio.

Comet Uranium Corp.,
Washington, D. C.
Aug. 20 (letter of notification) 700,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual

Bldg./Washington 4, D. C. Underwriters-—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
★ Commuters, Inc., New Canaan, Conn.
7 (letter of notification)
5,000 shares of common
stock.
Price—$1 per share.
Proceeds—For general cor¬

Nov.

porate purposes.
Conn.

Office—39

South

Ave., New

Canaan,

Underwriter—None.

if Connecticut Light & Power Co.

(12/8)

Nov. 18 filed $20,000,000 of first and refunding
mortgage
3%% bonds, series N.
Price—To be supplied by amend¬
ment.
Proceeds—To repay bank loans and for construc¬
tion

program.
Underwriters—Putnam & Co., Hartford,
Conn.; Chas W. Scranton & Co., New Haven, Conn., and
Estabrook & Co., Boston, Mass.

Consolidated

Edison

Co. of

New

York, Inc.

(12/6)
Nov. 9 filed

$70,000,000 of first and refunding mortgage
bonds, series K, due Dec. 1, 1985. Proceeds—To repay
$65,000,000 bank loans and for additions to utility plant.
Underwriter—To be determined by
competitive
Probable bidders: Halsey, Stuart & Co.
Inc.;

bidding.

Morgan
Stanley & Co.; The First Boston Corp. Bids—Tentatively
expected to be received up to 11 a.m. (EST) on Dec. 6.
ic Consumer Acceptance Corp.
Nov.

10

(letter of notification) $299,000 of 6% deben¬
A, due Oct. 1, 1973 (with stock purchase
warrants attached).
Price—At par (in denominations

tures,

series

of $500 and $1,000 each).

ing^ loans

Proceeds—For purpose of mak¬

and for other

general corporate purposes.
Office—904 Hospital St.,
Providence, R. I. Underwriters
—Simon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y., and Draper, Sears & Co. and
Chace,
Whiteside, West & Winslow, Inc., both of Boston, Mass.

'

Number 5484

182

Volume

Consumers

.

.

The Commercial and Financial Chronicle

.

Cooperative Association

Ccosa River

Newsprint Co.

preferred stock; 10,000 shares of 4% second preferred stock; and 4,000 shares
of 2% third preferred stock to be sold directly to mem¬
bers of the Association. Price—At par ($25 per share).
Proceeds
For general corporate purposes, including

Oct.

cash

funds, for expansion. Office—Coosa Pines, Ala.
writer—Blyth & Co., Inc., New York.

Nov. 8 filed 140,000 shares of

—

requirements necessary to meet requests for re¬
demption ahead of maturity on outstanding certificates
of indebtedness and 5%% preferred stock and to finance
accounts receivable; also to improve existing facilities.
Underwriter
None; stock sales to be made through
Association's employees. Office—Kansas City, Mo.
—

Continental

Aug.

Production

Corp.

122,200 shares of

being offered for subscription by
on

the basis of one

as

of record

Price—$70

stockholders

common

share for each three shares held

new

Nov.

8, 1955; rights to expire
share.
Proceeds—Together

per

(par $50)

Nov. 29.

on

with

other

Under¬

Corpus Christi Refining Co.

shares

and five

stock.

of

Price—$50.50 per
Proceeds—For acquisition of production payments.

Office—Las

Vegas, Nev.> Underwriter—First California
Co., Inc., San Francisco, Calif. Statement Amended and
Name Changed—See Channel Oil Co. above.

NEW
November 25

ISSUE

underwriting)

(No

Credit Finance
Oct. 28
stock

(letter of notification)

(par $1).

Price

Natural

Basin

Gas

Grange, Ga.

$300,000

&

Co.)

&

iGearhart

Pfd. & Com.

Monogram Uranium & Oil Co

(Paine,

Common
&

National

$700,000

& Electric Corp

Rochester Gas
(Cllering to

Co.)

to

invited)

be

Webber,

Old

Co.)

(Equitable

North

Securities

Shore

>

(Bids

.

I

30

Miles

Laboratories,

*

Bonds

—

(White,

Inc

|

Montana-Dakota Utilities

&

Jones,

W.

(Bids

Common

Puerto Rican Jai Alai, Inc
Crerie

&

Africa

Union of South

$1,875,000

Inc.)

Co.,

——

Bonds

—

$25,000,000

(Dillon, Read & Co.)

&

Brothers)

&

(Thursday)

1

(Carl

M.

(Bids

noon

EST»

Cement

Portland

invited)

to

be

&

11

a.m.

60,000 shares

Co.)

Common

December 5

$1,097,529

&

Co.

Inc. )

and

First

(Thursday)
$1,000,000

&

Co.)

.Debentures
$2,000,000

Debentures

underwriting)

$300,000

(Monday)
Preferred

New Orleans Public

-

(Bids to

Common

(Eiyth & Co., Inc.) 94,700 shares

(Wednesday)

Service Inc

Deetjen

& Co.)

$2,400,000

Corp.

-

Securities

Corp.)

(Bids

Pennsylvania

be

to

Electric
(Bids

to

be

$20,700,000

Co

Preferred

invited)

$8,000,000

Class A Common
January 18

(Wednesday)

(Bids noon CST)

$7,500,000

Class A Common

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers;
Merrill

•




Lynch,

Pierce,

Fenner

& Beane; and
6,952,293 shares

White,

Seattle-First National Bank

Columbus & Southern Ohio Electric Co.__Common
(Dillon, Read & Co, Inc. and The Ohio Co.) 250,000 shares
i

of

Lincoln,

Bros.

&

Co.

Hutzler

Inc.;

Kuhn, Loeb & Co.
(jointly); Lehman Bro¬

thers; Union Securities Corp.; The First Boston Corp.
Blyth & Co. Inc., (jointly); White;/Weld & Co. and
& Co. (jointly); Merrill Lynch,
Pierce, Fenner
& Beane and Kidder, Peabody & Co.
(jointly); W. C.
Langley & Co. Bids — Tentatively expected to be re¬
Shields

on

Dec. 13.
Power &

Light Co.

(12/13)

Nov. 16 filed 50,000 shares of preferred stock (par
$100).^
Proceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding. Probable bidders: Blyth & Co., Inc. and The First Boston '

Corp.

(jointly); White, Weld & Co. and Shields & Co.
(jointly); Lehman Brothers; W. C. Langley & Co. and
(jointly); Morgan Stanley & Co.

'

Union Securities Corp.

Bids—Expected to be received

on

Dec.

13.

C,

Delta

Minerals Co., Casper, Wyo.
(letter of notification) 600,000 shares of non-Vi
assessable common stock (par five cents). Price—50 cents
per share. Proceeds—Expenses incident to mining oper-'

Sept.

20

ations.

Office—223 City and County Bldg., Casper, Wyo. •
Underwriter—The Western Trader & Investor, Salt Lake*
Diamond

Portland

Cement Co.
(12/1)
/
60,000 shares of common stock (par $1)..Price—To be supplied by amendment. Proceeds
For
expansion program. Office—Middle Branch, Ohio. Un¬
derwriter—Merrill, Turben & Co., Inc., Cleveland, Ohio.
Nov.

10

filed

Dinosaur Uranium Corp., Salt Lake
City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—15 Exchange Place, Salt Lake City, Utah.
Underwriter

(Offering

to

&

Co.)

Common

stockholders—may

Blyth & Co., Inc.)

Weld

be

underwritten

100,000 shares

Co.,

same

city.

it Dirats Photo-Plate Co., Inc., Westfield, Mass.
Nov. 10 (letter of notification) 7,000 shares of common
(par $10) and 4,000 shares of 6%

non-cumulative

(par $25).

Dix Uranium Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290

University

Weber

&

Chicago, Milwaukee, St. Paul & Pacific RR.
Equip. Trust Ctfs.

Halsey Stuart &

Salomon

North

$300,000

(Tuesday)

bidders:
and

stock

r_Bonds

invited)

Ford Motor Co...

6

First Trust Co.,
Co., Chicago, 111.

Power & Light Co.
(12/13)
$10,000,000 of first mortgage and collateral

preferred stock

(Tuesday)

Pennsylvania Electric Co

S. Automatic Machinery & Chemical

December

...Preferred

be invited) $6,000,000

January 17

Preferred

Reading Tube Corp

Cruttenden &

—Western States Investment

11

$4,050,000

Insurance Co

Natural

basis

—

Nov. 16 filed

•

Common

Investing Corp.)

January

California

1-for-l

a

City, Utah.

15

(Reynolds & Co.) $6,000,000

Common

Dillon

(Columbia

Debentures

$25,000,000

Magnavox Co.

$875,000

Oil Corp

(Emanuel,

and

Preferred and Common

Horner & Mason, Inc.)

Pacific Employees

EST)

January 9

..Class A Common

(McDonald & Co.) 200,000 shares

Co.,

Inc.;

(Wednesday)'

Crystal Dairies, Inc

Rosiers.l Inc.) $300,000

Dixie Aluminum Corp

(Eastman,

Co.

Class A

American Greetings Corp

on

—

Daitch

(No

LeCuno

&

General Capital Corp

(Monday)

Alpha Plastics Corp

(Scott,

Ripley

$1,500,000

Colohoma Uranium, Inc.—

(Hirsch

Des

& Common

Jersey Bell Telephone Co

December

Common

underwriting)

stockholders—no

E.

$5,000,000

—.—Debentures

(Bids

10

Underwriters—The

Neb. and

.

$3,000,000

Sans Souci Hotel, Inc

(J.

Preferred

invited)

Harriman

Corp.;

(General

to

Bonds
$10,000,000

Light Co

Estabrook

New

Co

(Merrill, Turben & Co.)

(Offering

(Tuesday)

Loeb, Rhoades & Co. and Union Securities Corp.)

(Lee Higginson

Kansas-Nebraska

Delaware

National Propane Corp...—Preferred

Equip. Trust Cfls.

Baltimore & Ohio RR
Diamond

'

Light Co
be

December 14
December

Common

$5,490,090

Co.)

of

Nov.

For retirement of indebtedness secured by
mortgages; balance for payment of obligations and ;
expenses of the two companies in liquidation and for
liquidation distribution to stockholders. Office—Wichita^

$300,000

Tracerlab, Inc.

Natural Gas Co
.....Preferred
(Offering to stockholders—underwritten by White,

Western

Weld

(Bids

company,

Gas Co., Inc. of
(rights to expire on
Nov. 25); and to its eligible employees. Price—$4 per unit.
record

ceived

to

Production Co.

together with Kearney Gas Pro¬
Co., filed 935,999 units of beneficial interest in
Hugoton Gas Trust, being offered to common stock¬

Common

Delaware Power &
H.

4

(Monday)

December 13

Delaware Power

(F.

12

Brooks & Co., Inc.) $1,000,000

(Vickers

Pierce, Fenner

Gas

Sept. 30 this

merger

and

$1,800,000

EST)

noon

stock.

Empire, Inc.

Equip. Trust Ctfs.

Northern Pacific Ry—
(Bids

Notes & Common

First California Co. and Elanchett,
$3,589,450
notes
and
71,789

Inc.)

of

proposed

trust bonds. Proceeds—To repay bank loans. Underwriter
be determined by competitive bidding. Probable

Fidelity Life Insurance Co
(P.

Old

with

—To

(Friday)

$5,000,000

Beane)

$2,000,000

Preferred

Co

Inc. and Merrill Lynch,
&

Weld & Co.;

December
Maine

Common

-

9

convertible subordinated

1975.

investor, to be used in
with company of
Shopwell Foods, Inc., and for expansion program. Office
—Bronx, New York City, N. Y. Underwriter—Hirsch &
Co., New York.

Kan.

.Debentures

Co.)

:

be received from institutional

connection

Delaware
&

v

$2,000,000 of 4%

due

$2,625,000
v

Witter.

shares

$1,650,000

and

Equip. Trust Ctfs.

...

CST)

noon

r

.

first

Bonds

Cascade Natural Gas Corp..

$18,000,000

Co.)

$11,595,0.00

(Thursday)

Power Co

December

■

(Offering to stockholders—underwritten by The First
Boston Corp.) 106,962 shares

(Blyth & Co.,

Bids

(Dean

Preferred and Common

&

(Putnam

filed

28

holders

$2,500,000

Chas. W. Scran ton & Co.;
&
Co.) $20,000,000

(Wednesday)

Cuno Engineering Corp

8

Varian Associates

Hinton

November

EST)

noon

Oct.

pay off in full a'$400,000
Underwriter—Putnam & Co.,

duction

each

.Equip. Trust Ctfs.

(Putnam & Co.;

..Common

Co

FST)

of

Bonds

Missouri Pacific RR

$10,000,000

a.m.

shares

Common

Estabrook

Debentures

Electric Co
9

B

&

fy

to

Crystal Dairies, Inc. (12/15-20);

Deerfield

50,000

EST)

a.m.

Connecticut Light &
••/.w-.'

Blyth &

(Offering to stockholders—underwritten by Merrill
Lynch, Pierce, Fenner & Beane) 100,000 shares ' -

San Diego Gas &

11

$250,205 and (2)
5-year bank loan.

Hartford, Conn,

Co.
A

the Donner interests of entire out¬

of

Proceeds

Inc
Co.)

White; Weld

Co

Gas

(Bids

Common

(William R. Staats & Co. and

Porto Rico Telephone

Corp.)

December

.

Aircraft,

and

shares

Line Insurance

Bonds

Lincoln Service Corp
-Debentures
(Johnston, Lemon & Co. and Union Securities Corp.) $4,000,000

Northrop

Curtis

$30,000,000

D. Fuller & Oo.) 74,000 shares

(Morgan & Co. and S.

&

sum

to

$3,000,000

400,000

Co., the selling stockholder.
Co., Philadelphia, Pa.

Price—100% of principal amount*./
Proceeds—From sale of debentures, together with funds

Common

Jackson

&

shares of class A preference stock for
$1,010,000 and their entire holdings of common stock,,
consisting of 12,850 shares (85%) for the sum of $809,550;
and toward replacement in part of company's cash used •
(1) to purchase entire outstanding capital stock of Con¬
necticut Filter Corp. from the Donner interests for the

debentures

..Preferred
EST)

a.m.

Pennsylvania RR.

Engineers, Inc

Century

Common

shares

(Wednesday)

Class

(Tuesday)

Electric Co.__

&

(Bids

7

$1).

10,100

Daitch

Co

11

(Bids

Baltimore Gas

Preferred

i'_

(par

Proceeds —To

Engineering Corp., Mend211, Conn. (11/30)1
100,000 shares of $1 cumulative preferred
stock (no par — $14 stated value)
and 100,000 shares
of common stock (par $1) to be offered in units of one
share of. each class of stock.
Price — $16.50 per 4 unify
Proceeds—To repay, in part, bank
loan, in connection

$12,500,000

405,365

..Common

stockholders—underwritten by The First
Boston Corp.)
200,000 shares

November 29

Inc.)

stock

filed

3

4V2 %

Minute Maid Corp

.

Richmond Homes, Inc

Co.,

Light

&

(Cruttenden

Common

EST)

a.m.

&

(Bids

—_—Common

$1,000,000

& Co.)

(Carr

Gas

$400,000

Inc.)

11

December

Atlanta

....Common

Otis,

shares

373,900 shares

Yuba Consolidated Oil Fields

McManus

$757,500

Anthony Securities Corp.)

(James

(Bids

(Elyth

International Metals Corp

Rhoades & Co.) 75,000

Corp
(Reynolds ^ Co.)

$500,000

Eagle Newspaper Enterprises, Inc

Common

Virginia Electric & Power Co

Joseph

and

Co.

Bonds

$70,000,000

Products

—Common

Securities

States

EST)

a.m.

common

Cuno

Nov.

standing

Co

Electra

Co., New York.

'

shares of

supplied by amendment.

with purchase from

CALENDAR
11

be

be

RomenpOwer

Corp.

50,000

For

Y:v

■

To

—

Price—To

To

—

Courts and
supplied

Veterans,

Underwriter—Allen &

^Cumberland Gas
filed

,

4%

1983.

Proceeds

Construction Co.

17

of

due

bonds

Underwriter—Bioren
—

Office—Ma'llory-Hutchinson Bldg., La

.

Works

amendment.-

by

,

$2,000,000

common

Proceeds

.

Commcn

Clad-Rex Steel Co.—
(Mountain

share.

Underwriter—Franklin Securities Co., At¬

Chemical

21

Southeastern Public Service

148,000 shares of

per

lanta, Ga.

Revlon

Corp._______

(Columbia Securities Corp.)

$2

—

(Carl M. Loeb,

(Monday)

(Republic of)
filed

•

working capital.

Kawecki

$2,600,000

November 28

it Cuba
Nov.

Price

Corp., La Grange, Ga.

(Bids

Common

—

Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt"
Lake City, Utah.'
'

Nov.

Consolidated Edison Co. of New York

(Friday)

Kayser (Julius) & Co._

Cross-Bow Uranium Corp. Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock. 'Price—At par (six cents per share).-. Pro- <
ceeds
For mining operations. Office — 1026 Kearns*

Public

Sept. 2 filed 500,000 shares' of common stock (par 10
cents). Price—At the market. Proceeds—To a selling
stockholder. Office—Corpus
Christi, Texas. Underwritei

29

debentures

U.

stock

common

—None.

filed $8,700,000 of 15-year
income de¬
bentures due Sept. 1, 1970 and 870,000 shares of common
stock (par 10 cents) to be offered in units of $50 of
unit.

19 -filed

51

(2235)

•

Investment

Ave., Provo, Utah.
Co., Provo, Utah.

Dixie Aluminum

Oct.

31

Corp., Rome, Ga.

Underwriter

—

(12/5-9)

filed

125,000 shares of 36-cent cumulative pre¬
ferred stock (par $4) and 125,000 "shares of common
stock (par $1) to be offered in units of one share of each
class

of

stock.

Of

the

common

shares, 74,180

by

Continued

on

are

being

page

52

-

52

The Commercial and Financial Chronicle

(2236)

»

Continued from page 51

3

(12/15)
notification) $300,000 of 10 year 8%
Price—At par (in denominations of $100,

(letter of

sold by

debentures.

President.

$500, $1,000

the company and 50,820 by Brett D. Holmes, its
Price—$7 per unit, Proceeds—To repay in¬
debtedness and for expansion, equipment, working capi¬
other general corporate purposes. Underwriter—

tal and

Springs, Fla.

"Scott, Horner & Mason, Inc., Lynchburg, Va.

General Molded

For

to

acquire

option, which

expires

Dec.

on

4,

1955,
Eagle,

certain properties of the Brooklyn
working capital. Office—Brooklyn, N. Y.
—
James Anthony Securities Corp., New

inc.; and for
Underwriter
York.

Eagle Rock Uranium Co*r Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable

stock.

common

Proceeds

share).

—

For

Office—214

activities.

None.

Utah.

Underwriter—Valley
Vegas, Nev.
Basin Oil &

East
Oct. 25
mon

Co.

(letter of notification)

stock

(par

one

cent).

Proceeds—For expenses

1,500,000 shares of com¬
Price—20 cents per share.

incident to drilling for oil and

Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.
gas.

Standard Mining Co.
Nov. 14 (letter of notification) 1,000,000 shares of com¬
mon
stock
(par 10 cents).
Price—20 cents per share.
Proceeds
For mining expenses.
Office — 403 Beacon
Bldg., Salt Lake City, Utah.
Underwriter—None.
it East

—

South Hill

of

stock).

Electronic

Micro-Ledger Accounting Corp.
Sept. 28 (letter of notification) 297,000 shares of com¬
mon stock (par
10 cents), to be offered for subscription
by stockholders.
Price—$1 per share.
Proceeds—For
general corporate purposes. Office—53 State St., Boston,
Underwriter—None.

Mass.

three

lic Pictures

films

Corp.

under release contract

Underwriter

to

Repub¬

Gerard R. Jobin In¬

—

Entz-White
26

filed

&

Supply,

of

20-year,

Inc.

sinking fund
debentures and 10,000 shares of capital stock (par $1) to
be offered in units of $50 principal amount of deben¬
tures and one share of stock;
Price
$50 per unit.
Proceeds—To retire $80,000 of outstanding debentures;
to increase inventories; and to establish additional out¬
lets.
Office—Phoenix, Ariz.
Underwriter—None.
7%

—

Underwriter

(letter of notification)

• Guilford-Chester

common

stock

stockholders

(par $10), to be offered for subscription by

on

the basis of

one

new

share

for

each

10

shares held.

Price—$30 per share. Proceeds—To form and
invest in the capital stock of an insurance company sub¬
sidiary. Office—Munsey Bldg., Baltimore 2, Md. Under¬
writer—None.
Fort

.

Pitt

Packaging International, Inc.

50,000 shares of five selling stockholders. Price—$3 per
Proceeds—For working capital; for exploitation

share
of

Totosave"

Hay"

infra-red

system;
space

and for marketing of "Tropicheater.
Office — Pittsburgh, Pa.

Underwriter—Barrett Herrick &

Railway Supply Co.
Oct. 19 (letter of notification) 20,000 shares of common
stock (no par) to be offered for subscription by stock¬
Price—$10

share.

per

Proceeds—To

unsecured bank loans and for working capital.
927 Market St., Wilmington, Del.

reduce

Office—

Underwriter—None,

But C.
to

W. Floyd Coffin and Herman F. Ball have agreed

1,000,000 shares of

per

share.

stock (par $10).

Proceeds—For capital and surplus.

Calif.,
Calif.
York.

Office—2054

c/o Ray

University

B. Wiser,

President.

life, title and

Avenue,

Berkeley,
New

Utah:

15,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—515 Deseret Bldg.,
Salt Lake City, Utah.
Underwriter — Moab Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Gas

Hills

Mining & Oil, Inc., Kemmerer, Wyo.
Aug. 1 (letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents).
Price — 25 cents per share.
Proceeds—For oil and mining expenses.
Underwriter—
Empire Securities Corp., Las Vegas, Nev.




capital.

Helio
Nov.

3

tive

N.

President;

Aircraft

"Isras"

26

Underwriter—Put¬

1

Pro¬

working or leasehold inter¬

Intermountain

share.

Proceeds—For

filed

offer

Dec.

6

to

on

per

Public

share for each

12, 1955.

administra¬

stock

5.

Stockholders

Kayser

Nov.

record
29

7

the

on

basis

of

per

cents

per

Boyertown,

.

& Co., New York

(11/25)

the basis of

one

new

share for each

share.

Proceeds—For

and

insurance companies.

Production Co.'

- -

:

-

voting capital stock (par $5) to be offered for subscrip¬
tion by employees.
Price—$10 per share.
Proceeds—
For working capital.
Office — 1300 South Boulevard,
Charlotte, N. C.
Underwriter—None.
Lander Valley Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of

Pro¬

mon

stock

Price—10 cents

(par two cents).

Proceeds—For

Monument

(par

expenses

Price—10 cents per share.
incident to mining activities.

Office—205 Byington Building,
Reno, Nev.
—Richard L.
Dineley, same address.
industria

Electrica

de

Mexico, S. A.
Industry of Mexico, Inc.)
filed

com¬

cent).

one

For

Mining Corp.
3,000,000 shares of

157,632

American

shares

Underwriter

representing

amount of common shares (par 100 pesos-Mexican
currency—U. S. $8 per share) to be offered for subscrip¬
tion by common stockholders at the rate of one new

rights to expire

common

on

general corporate

Financiera, S. A.,

a

share

Dec. 13.

held

of

record

Nov. 28;
Proceeds—
Underwriter—National

Price—At par.

purposes.

mining

com¬

share.
activities.

per

it Lead Trust Mines,
Oct. 24

Inc., Spokane, Wash.
(letter of notification) 500,000 shares of

stock.

Price—At

10

Wash.

cents

per

share.

common

Proceeds—For

Office—508 Norfolk Bldg., Spokane,
H. Copley, 424 Kuhn Bldg.,

Underwriter—Mark

Spokane, Wash.
•

LeCuno Oil

Aug.

Corp., Jefferson, Texas

filed

29

Price

450,000
—

shares

Around

payment of liabilities

$9

and

of

per

capital
share.

expenses

(12/5)
stock

(par

Proceeds

incident to

—

oil

10
For
and

gas and mineral activities.
a

like

each

to

Office—c/o Warren E. Morgan, President, 1705 East First
South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.

cents).

(Electrical

incident

expenses

mining operations.

Uranium

(letter of notification)

purposes.

• Lance, Inc., Charlotte, N. C.
Nov. 14 (letter of notification). 1,920 shares of class A
capital stock (par $5) and 2,880 shares of class B non¬

com¬

of

Price—$20

general-corporate

'

—

(12/6)

Pa.

See Deerfield Gas Production Co. above.

St., Derby,

share).

on

Kearney Gas

one *

held; rights to expire on
share. Proceeds—For con¬

(25

par

(Julius)

certain officers, directors

shares

Price—At

stock

;

Business—Manufactures wearing apparel. Underwriter—
None.
Any unsubscribed shares will be taken up by

Co.

City, Utah.

Indian

For

Co.,

five shares held; rights to expire on Dec. 14.
per

Service

Price—$21

(letter

for

.

mortgage indebtedness and bank loan;

of record Nov. 25

19.

Wash. Underwriter—Pacific Brokerage Co. of Seattle,
Wash.

share

r

.

130,000 shares of common stock (par $5)
to be offered for subscription by common stockholders

vote

4.

7

St.,

Oct. 24 filed

or

notification) 1,674 shares of capital
stock. Price—At par • ($100 per share). Proceeds—For
working capital, etc. Office—603 Central Bldg., Seattle

Nov.

,y*'

Loeb, Rhoades & Co., New York.

—

Salt Lake

•

Chemical

tire outstanding

ceeds—For expenses incident to mining activities. Un¬
derwriter
Elmer K. Aagaard, 323 Newhouse Bldg.

Proceeds

Montezuma

..

Kawecki

and

will

Hunt Uranium Corp., Green
River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of

Sept. 6

mining
Cortex,
Bay Securities Corp., New York,
West

Nov. 10 filed 75,000 shares of capital stock (par 25 cents).
Price—To be supplied by amendment. Proceeds—To re¬

Hugoton Gas Trust

25

—

incident to

expenses

326

—

Bldg., Kansas City, Mo. Underwriter—None.

See Deerfield Gas Production Co. above.

stock.

Proceeds—For
Office

Underwriter

non¬

Price—10 centa

program; and for working capital and
other general corporate purposes. Underwriter—Carl M.

share of either class A

one

struction expenditures.
Office—33 Elizabeth
Conn.
Underwriter—None.

mon

share.

stock (par one cent).

Insurance Co.
Sept. 19 (letter of notification) 7,500 shares of capital
stock (par $25), being offered to stockholders as of Oct,
1 on the basis of one new share for each eight held;
rights to expire on Nov. 15. Price—$40 per share. Pro¬
ceeds—For general corporate purposes. Office — Title

Sept. 13 (letter of notification) 12,774 shares of common
(par $15), being offered for subscription by com¬
new

Underwriter—None.

Kansas City Title

common

stock

Dec.

Corp.,

'

B

Dec.

on

Statement effective Oct.

stockholders of

Colo.

Denver,

common

activities.

exchange for each two Federated shares;

mon

Center,

assessable

approving acquisition of assets of Federated.

Housatonic

"

;

for construction

the basis of

expire

"/■

■

•

New York.

Ltd., Calgary, Canada
1,500,000 shares of class A

class B stock in
the

Underwriter—-Rassco Israel

Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of

Corp., Canton, Mass.

per

.

Jurassic

Brokerage

24,000 shares of

Co., Ltd.
Price—At par (100

★ Juniper Oil & Mining Co.^ Denver, Colo.
17 (letter of notification)- 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For
general corporate purposes.
Office—1019 Mile

High

Underwriter—None.

Co.,

on

Aviv, Israel.

Colo.

shares of class

stock

Investment

Nov.

stock, which are being of¬
fered in exchange for Federated
Petroleums, Ltd. com¬
mon

Israel-Rassco

Sept. 28 filed 9,000 ordinary shares.

city.

same

Oil

Underwriter—Israel Securities Corp., New

Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Offiea

Acceptance Corp., Salt Lake City, Utah
notification) $300,000 of 25-year 6%

Home

Industrial

filed

ate purposes.

(letter of

Co.,

5

York, N. Y.

junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and
$100). Pro¬
ceeds—For working capital.
Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
•

369-375 DeKalb Ave., Brooklyn 5,
& Co., New York..

—

& Mineral
Development Corp^
200,000 shares of common stock (par $25).
Price—$27.50 per share. Proceeds—For general corpor¬

engineering expenses. Office — Metropolitan
Airport, Canton (Norwood P. O.), Mass. Underwriter—

ton &

per share.
Proceeds—
Co., Inc. for purchase of equip¬

Price—$2

Arliss

Underwriter—Kamen

Israel

Oct.

be

Uranium

Price—$5

1

Y.

cents).
to

Office

ment, etc.

and

Sept.

(par 10

advances

—Tel

(letter of notification)

stock.

Otis, Inc., New York.

Plastic

New York.

Underwriter—United

mon

Co., Salt Lake City, Utah

Aug. 1, (letter of notification)

*

For

Corp., Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).1 Proceed®
—For mining expenses. Office—E-.17 Army Way,
Ogden,

Office—Berkeley,

Underwriter — Blair & Co. Incorporated,
Offering—Indefinitely postponed.

Fremont Uranium

also

Price—$1,825,000, plus accrued interest of $29,632.

Oct.

common

Business—All insurance coverages, except,

mortgage.

will

stock

Uydro-Loc, Inc., Seattle, Wash.

Freedom Insurance Co.

Price—$22

the

stock

Water

ceeds—To purchase certain
ests in oil and gas interests.

Half Moon

(11/28-12/2)

Industries Corp.
(letter of notification) 150,000 shares of common

Oct. 12

Coast

purchase all shares not subscribed for by stockholders.

June 6 filed

of

Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.

■

Corp.

400,000

writer—Gearhart &

Co., Hartford, Conn.

Gulf

Co., Inc., New York.

Franklin

holders.

Some

loans and for working
&

nam

•

June 30 filed 300,000 shares of common stock (par 10£),
at which 250,000 shares of for account of company and

Metals

shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance ex-'
ploration and development of mining properties of Re-1
cursos
Mineros Mexicanos, S; A., Mexican subsidiary,
and to discharge note.
Office — Houston, Tex. Under¬

Co., Clinton, Conn.
Nov. 10 (letter of notification) 8,507 shares of common
stock (no par) to be offered for subscription by stock¬
holders.
Price—$29.50 per share.* Proceeds—To reduce

2,293,231

10,000 shares of class A

filed

4

Mexican corporation controlled by

-

Underwriter—I. I. I. Securi¬

76 Beaver St., New York, N. Y.

International

Oct.

of

St., Los Angeles, Calif. Underwriter—

None.

—

.

(par $!)♦

;

offered to public through Kenneth K. Pound,
and Law L. Lovelace, Secretary-Treasurer.

Sept.
Finance Co. of America at Baltimore

Oct. 19

by

Insurance Co.,
Phoenix, Ariz.
^
.
Oct. 26 filed 700,000 shares of capital stock (par $1), to
be offered to present
and future holders of policies
issued by National Reserve Insurance Co. as an optional
dividend refund of their annual policy premium. Price
—$1.60 per share. Proceeds—For working capital, etc.

Home

Lumber

$500,000

rate

None.

vestments, Ltd., St. Petersburg, Fla.

Oct.

the

at

14

Corp., Ogden, Utah.

Empire Studios, Inc., Orlando, Fla.
Oct. 7 (letter of notification) 120,000 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds—
To finish

;'

.

Oct. 14 filed

chasers

Nov.

•

Great Southwest Fire

bank

Edgemont Shopping Center, Inc., Chicago, III.
6,000 shares of class A common stock. Price
—At par ($100 per share).
Proceeds—To acquire title
to shopping center in Lansing, Mich., from builder of
center. Underwriter—None, offering to be made through
officers of company. Funds are to be held in escrow (if
not enough is received, funds will be returned to pur¬

for subscription

offered

record

of

com¬

^ International

5th

Uranium

being

;

shares of capital stock

Proceeds—For investment. Business
invest in foreign securities of the free world out-

ties Corp.,

171,429 shares of

Investors Inc., New York

side of the United States.

one new share for each
17 shares held (with an over¬
subscription privilege); rights to expire on Dec. 5. Price
—$1.621/2 per share. Proceeds-r-For general funds. Office

—417

South, Salt Lake City,
State Brokerage, Inc., Las

(par $1)

stockholders

common

Price—At par

East

(letter of notification)

stock

mon

cumulative convert¬

Price—At market.
—To

Great Lakes Oil & Chemical Co.

Sept. 29

expenses

(one cent per
incident to mining

International

Aug. 23 filed 200,000

acquisition of machinery, molding equipment and
working capital. Office—Tower Petroleum Bldg., Dal¬
las, Tex. Underwriter—First Securities Co., Dallas, Tex.
•

Inc., Belleville, N. J.

100,000 shares of 6%

(par$5). Price—To be supplied by
Proceeds—-For general corporate purposes.
Underwriter—Alexander Watt & Co., Ltd., New York.

Plastics, Inc.

preferred stock (par $10) and 75,000 shares of common
stock (par 10 cents) to be offered in units of one share
•of each class of stock.- Price—$10.10 per unit. Proceeds—
an

Circuits,

10 filed

ible preferred stock

amendment.

Sept. 30 (letter of notification) 297,500 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—

exercise

Nov.

Underwriter—None.

Eagle Newspaper Enterprises, Inc. (11/28-12/2)
Oct. 19 filed 75,000 shares of 7% cumulative convertible

To

Insulated

and $5,000). Proceeds — For purchase of
paper.
Office—4309 N. W. 36st St., Miami

commercial

Thursday, November 24,1955

.

the Mexican Government, has agreed to purchase all of
the additional new common stock not subscribed for.

General Capital Corp.

Oct.

..

Underwriters—Eastman, Dil¬
Co., New York; and First California Co., Inc., San
Francisco, Calif.

lon &

it Libby, McNeill & Libby, Chicago, III.
8 (letter of notification) 21,425 shares of common
stock (par $7) to be offered to
employees under Stock
Nov.

Purchase

Plan.

Price—At

market

on

date

of

purchase.

Proceeds—To reimburse company for
purchase of shares.

Underwriter—None.

Volume 182

Number 5484

.

.

.

The Commercial and Financial Chronicle

53

(2237)
Life Underwriters Insurance
Co., Shreveport, La.
Sept. 26 filed 100,000 shares of common stock (par 25
cents) to be offered for subscription„by present stock¬
•

Miles

Nov.

from

the

commencement

the

of

after which
Price—$8.75 per

for

Corp. (11/29)
12-year sinking fund capital de¬

amendment.

To be

and

Lithium
17

other

Brooks &

(The)
Oct. 12
tive

1956

on

Price—At par ($10 per share).
working capital. Underwriter—Charles
Associates, Hartford, Conn.

of

soil

a

conditioner.

cisco, Calif.

per

Office—681

share.
incident

expenses

Market

St.,

Proceeds

cents).

Price

62J/2
incident to

cents

—

Proceeds—

selling
San Fran¬

it Massachusetts Investors Growth

Stock

shares

22

filed

of

capital

National Old Line Insurance Co.

Nov,

15

filed

(par

$2)

and

18

ferred

50,000

shares

of

class

A

common

stock

Propane Corp.

filed

140.000

shares

(12/13)
of

convertible

pre¬

stock

$4,950,000 of 4%% 15-year notes, to be used to pay for
bottled gas business of Shell Oil Co. in the Middle West.
Office—New Hyde Park, L. I., N. Y.
Underwriters—
Carl M. Loeb, Rhoades & Co. and Union Securities
Corp.,

Fund,

*

both of New York.

Office—Boston, Mass.

Oct. 19 filed 57,776 shares of common stock

assessable

a

subsidiary,

stock

in

(par 55)

t

Co., Mexico, Mo.

stockholders

of National

exchange for
of National

on

57,776
a

'

(par $5) to
Refractories Co.,
shares of Capital

share-for-share

basis;

offer to remain open for 60 days from date of
prospectus.
Offer is conditioned upon Mexico

owning at least 80%

of

outstanding
exchange.
Mid-State

National

stock

Commercial

upon

consummation

of

Corp.

Oct. 31

(letter of notification) 5,000 shares of 7% cumu¬
lative preferred stock.
Price—At par ($10 per share).
Proceeds
To acquire conditional sale
contracts, to re¬
—

duce

notes

Office

payable

and

for

other

corporate

2

King St., Middletown, N. Y.
Frazee, Olifiers & Co., New York.
—

Mid-Union

Nov.

10

filed

purposes.

Underwriter—

500,000 shares of

Price—$3

per

purposes.

Underwriter—None.

share.

common

Proceeds—For




stock

general

;

share.

common

stock

Proceeds—For

tivities.

(par

cent). Price—$1
incident to mining

one

expenses

Underwriter—Western Bond & Share

per
ac¬

Co., Tulsa,

Underwriter—None.

'

.

Securities Corp., New York
Nov. 17 filed 557,085 shares of capital stock..
market.

Proceeds—For

Northrop Aircraft, Inc. (11/29)
3 filed
$10,000,000 of convertible

debentures

due

Dec,

j

.

t

Price—At

investment.

Nov.

subordinated

1, 1975.

Price—To be supplied by
amendment. Proceeds—For working capital and general
corporate purposes, including reduction of bank loans.

Co., and Blyth & Co.,

Norwood

Uranium, Inc., Norwood, Colo.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share/Proceeds—For mining expenses. Underwriter—Columbia
Oct.

21

mon

stock

Co., Denver, Colo.

Nu-Petro

Corp., Dallas, Texas
14 filed 4,000,000 shares of common stock (par 25
cents). Price—30 cents per share. Proceeds—For pur¬

Nov.

chase of investments

and property interests in both oil
and nuclear situations. Underwriter—None; but

and gas

will

be

made

through

Frost of Dallas is Chairman

of

licensed 'dealers.
the

Board

Jack

J. Cullen

and

Looney of Edinburg, Texas, is President.

it Oak Mineral & Oil Corp., Farmingt^n, N. M.
Nov. 8 (letter of notification) 2,000,000 shares of common
stock

(par five cents).

Price—15 cents

ceeds—For exploration and

eral corporate purposes.

per share.
Pro¬
development and other gen¬

Underwriter—Philip Gordon &

Co,., New York.
•

Old

Empire,

Inc.

(.12/12-23)

Oct. 31

•

Underwriter—Vickers

Olive-Myers

Oct.

24

it Navajo Uranium & Thorium Corp.
Nov. 10 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office—223 Fremont St.,
Las Vegas, Nev.

share

at

it New
mon

Co., Dallas, Texas

100,000 shares of 55-eent cumulative

preferred

subscription

Brothers, New York.

Spalti Mfg.

by

stock

(par

$6.25) to be offered
stockholders on basis of

common

Era

Un¬

Mining Co.,

Spearfish, S. D.
(letter of notification) 1,100,000 shares of
stock.
Price—At par (25 cents per share).
14

con¬

for
one

of

preferred stock for each 2,597 shares of com¬
held. The subscription warrants will expire
3:30 p.m. (CST) on the 14th day
following the ef¬
stock

fective

date of the registration statement.
Price—To
stockholders, $9.50 per share; to public $10 per share.
Proceeds—For expansion program.
Business—Manufac¬

tures household

furniture.

Underwriter—Dallas Rupe &

Son, Inc., Dallas, Texas.

Inc., Las Vegas, Nev.
(letter of notification) 3,000 shares of capital
par ($100 per share).
Proceeds—Fo*
South 5th St., Las Vegas, Nev. Underwriter—Hennon &
Aug. 16

stock.

Price—At

Roberts, Las Vegas, Nev.
•

Facific

Employers Insurance Co. (12/5)
94,700 shares of capital stock (par $5).
Price—To be supplied by amendment.
Proceeds—Fo?
working capital. Office—Los Angeles, Calif. Underwriter
—Blyth & Co., Inc., San Francisco, Calif.
.

Nov. „10

filed

Pacific International Metals & Uranium, Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office

Underwriter—

Guss Securities Co., Salt Lake City, Utah.
Paria

Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
mon
stock (par five cents).
Price—10 cents per share.
Proceeds
For mining expenses.
Office — Newhouse
Bldg., Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.

Oct.

17

—

Underwriter—None.

Nevada Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent). Price—20 cents per share.
Proceeds—For expenses incident to mining activities.

Nov.

filed

vertible

Partridge

Canadian

Explorations,

Ltd.

(Regulation "D" filing) 500,000 shares of com¬
mon
stock
(par $1).
Price—60 cents per share.
Pro¬
ceeds—For exploration and development costs.
Office
Sept. 21

—West

(par $1).
corporate

.

it Peoples

—419 Judge Bldg., Salt Lake City, Utah.

Okla.

Office—Professional Building, Winnemucca, Nev.
derwriter—Shelley, Roberts & Co.. Denver, Colo.

Indemnity Co., Elgin, III.

shares held.. Price—$14 per share.
Proceeds—To repay
advances from New England Electric System, the parent.

Ottilia Villa,

second

be

offered to

it North Shore Gas Co., Salem, Mass.
10 (letter of notification) 1,289 shares of common
stock (par $10) to be offered for.subscription
by minor¬
ity stockholders at rate of one new share for each five

Nov.

mon

(12/7)

(par $25) and 100,000 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—Together with funds from private sale of

amendment) an additional 500,000
stock
(par $1).
Price—At market.

Refractories

Dec. 7 at 441 Stuart St., Boston

N. J.

Natural Power Corp. of America, Moab, Utah
Sept. 7 (letter of notification) 300,000 shares of non¬

Mexico

on

writer—None.

Nov.

share.

(by

Proceeds—For investment.

(EoT)

of which
issued to
Mr. Fortner.
Proceeds—For working capital.
Address
—Box 23512, Lugo Station, Los Angeles, Calif.
Under¬

it Fatiora!
common

Incorporated
Nov.

from $10

will issue

—

For expenses
mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
—

city.

50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment.
Pro¬
ceeds
To selling stockholders.
Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y.

to

per

a.m.

(lettermf notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—^-To
retire $17,800 of outstanding preferred stock; for equip¬
ment, inventory and working capital. Business—Chem¬
ical specialties. Office—865 Mt. Prospect Ave.,
Newark,

•

Mascot

35

same

—

Underwriter—Globe Securities Corp., New

(par

Co., 701 Continental Eank Bidg.,

Mercury Corp., Denver, Colo.
Oct. 24 (letter of notification) 750,000 shares of common
stock (par one cent). Price—40 cents per share. Proceeds
For mining expenses. Office — 414 Colorado
Bldg.,
Denver, Colo. Underwriter—Shaiman & Co., same city.

York.

stock

Underwriter

Employee's Time-Table Cover Co.
Nov. 10 (letter of notification) air aggregate of
$30,000
of personal notes of Howard J.
Fortner, sole owner of

common

Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of

for purchase of shares.

National

capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same city.

Price—$1

to 11

16, Mass.

Securities

to mature in two years (in amounts
$500). When $15,000 is subscribed, company
an aggregate value of
$50,000 of capital stock,
$30,000 will be used to pay notes and $20,000

Manufacturers Cutter Corp.
18 (letter of notification) 300,000 shares of
class A
common stock. Price—At
par ($1 per share). Proceeds—
To repay loans, and for new
equipment and working

and

up

Inc., both of Los Angeles, Caiii.

(11/30)

company,

Oct.

cents).

Co.

to

Mansfield, Ohio.

expenses

Utilities

it National

Underwriter—None.

10

Co., Detroit,

50,000 shares of cumulative preferred stock
Price — To be supplied by amendment.

company

Investment

'•'

Marl-Gro, Inc., San Francisco, Calif.
(letter of notification) 172,500 shares of

der, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated. Bids—Scheduled to be received

ofLenng

—To reduce short term indebtedness and for
construction
program. Office—35 Park Avenue East,

(par

&

+ Mt. Vernon Mining & Development Co.
Nov. 16 (letier of notification) 3.0J,000 shares of com¬
mon
stock.
Price—At oar ($1 per share).
Proceeds—
For
mining expenses.
Office—4k2' Continental Bank
Bldg., Salt Lake City, Utah.
Underwriter — Hackett

Mansfield, Ohio
(letter of notification) 6,000 shares of 5% pre¬
ferred stock.
Price—At par ($50 per share). Proceeds

mining

Underwriter—Carr

—None.

4

Oct. 6

filed

$100).

imburse

company and 100,000 shares for certain
Price—20 cents per share. Proceeds—For

it Manning Mining Co., Sumter, S. C.
Nov. 14 (letter of notification)
45,000 shares of common
stock.
Price—At par
($1 per share).
Proceeds—For
mining expenses. Underwriter—None.

stock

pay

it Montana Power Co., Butte, M~nt.
Nov. 16 (letter of notification) 7,250 shares of common
stock (no par) to be offered for subscription by em¬
ployees. Price—At cost to company. Proceeds—To re¬

mining expenses. Office—374 Denver Club Bldg., Den¬
Colo. Underwriters—General Investing Corp., New
York; and Investment Service Co., Denver, Colo.

For

per

both of New York.

Thenebe

Mansfield Telephone Co.,

Co., Salem, Mass. (12/7)
$2,500,000 of first mortgage bonds, series Bt
due 1975. Proceeds—To repay bank loans and advances
from New England Electric System. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kid¬

Co., Cincinnati,

Underwriters—Blyth &
Co., Inc., and Merrill Lynch, Pierce, Fenner & Beane,

ver,

Nov.

&

Proceeds—To repay bank loans.

Manhattan Mercury Corp.,
Denver, Colo.
(letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent), of which 1,400,000 shares are
account

W. E. Hutton

Shore Gas

1 filed

Underwriters—William R. Staats &

1

(par

Oct. 26

for

North

Nov.

-

contingencies.

Nov.

Proceeds—
E.

\ork, N. Y.

,

seen

share-for-

a

For

stockholders.

—

'

Mich.

stock

Co.

—

—

$100,000 each to purchase mining
for development and driving drift and
for exploratory drilling; and the remainder lor
working
capital, acquisition of additional properties, and unfore¬

general corporate
Underwriter—P. W.

share basis).
&

Underwriter

Montana-Dakota

common

10

chase contract; to use

Proceeds—For

into

Probable bidders:
Halsey, Stuart
Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Shields & Co.; Kuhn, Loeb & Co.; White, Weld
& Co.
Bids
Expected to be received up to 11 a.m.
(EST) on Dec. 14 at Room 2315, 195 Broadway, New

York.

^equipment, to

(letter of notification) 10,000 shares of cumula¬
preferred stock (convertible any time
1,

(par

share. Proceeds — To make payment ol
$675,000 to Four Corners Uranium Corp. under a pur¬

Manchester Co.

Jan.

of New

Price—$2

convertible

after

Corp., New York (12/7)
400,000 shares of common stock

Monogram Uranium & Oil Co. (11/28)
Aug. 31, filed 500,000 shares of common stock (par $1),

Maine Fidelity Life Insurance Co.
(12/12-16)
Nov. 10 filed 40,000 shares of capital stock
(par $10).

Portland, Me.
Co., Inc., New York.

Underwriter—To be determined by

competitive bidding.

•

one

expenses

—

filed

15

Ohio.

•

share.

corporate purposes.

Boston

&

Ohio.

—

per

First

Silica Co., Cincinnati, Ohio
(letter of notification) 3,000 shares of 8% cumu¬
Price
At par ($50 per share).
Proceeds—For processing plant, heavy
equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,

-

Office

The

—

Mohawk

3,000,000 shares of non¬
cent); Price—10 cents
incident to mining
operations. Office
Simms Bldg., Albuquerque, «N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake City, Utah.

Price—$25

Underwriter

Oct. 3

notification)

purposes.

capital.

lative preferred stock.

Lost Canyon Uranium & Oil Co.
Oct. 6 (letter of

(par

For

—

Uranium Co.

Proceeds—For

—

Nov. 18 filed

12.

cents per share.
Proceeds
For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At
par (10 cents per share). Proceeds
—For mining expenses. Office—440 West 3rd
North, Salt
Lake City, Utah.
Underwriter—Skyline Securities, Inc.,

share.

Proceeds

it New Jersey Bell Telephone Co. (12/14)
!
$25,000,000 of 40-year debentures due Dec.
1, 1995.
Proceeds—To repay advances from American
Telephone & Telegraph Co., its parent, and for general

share

Dec.

Mobile Uranium & Oil Co., Salt Lake
City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five

600,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development
costs, etc. Underwriter—George Searight, New York City.

per

new

on

Minute Maid

both

Developments, Inc., Cleveland, Ohio

assessable capital stock

one

332,

—

for

Denver, Colo.

of

Price—To be related to current market price in
over-the-counter market at time of
offering. Pro¬
ceeds
To increase working
capital. Underwriters —
Paine, Webber, Jackson & Curtis and White, Weld & Co.,

filed

Little Mac

basis

the

working capital. Underwriters—
Johnston, Lemon & Co., Washington, D. C.; and Union
Securities Corp., New York.
Oct.

the

on

held; rights to expire

cents).

supplied by

Proceeds—To reduce bank loans and

indebtedness

working

Nov.

Nov. 3 filed $4,000,000

—

mining expenses. Address—P. O. Box
Spearfish, S. D. Underwriter—None.

Corp., New York.
•

Price

shares

ten

Price—To be supplied by amendment.

None.

bentures, due Dec. 1, 1967.

ceeds—For

of common stock (par $2)
subscription by common stockholders

for

expansion; purchase of machinery and equipment; and

share to stockholders; $10 per share to
public. Proceeds
—For expansion and working
capital.
Underwriter—
Lincoln Service

each

(11/30)

106,962 shares

of record about Nov. 29
for

offering,

unsold shares will be offered to
public.

Laboratories, Inc., Elkhart, Ind.

filed

be offered

to

holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to
expire 45 days

9

Toronto, Ont.,

Canada.

Underwriter

—

Hunter
York.

Securities Corp. and M. J. Reiter Co., both of New
com¬

Pro¬

Continued

on

page

54

54

The Commercial and Financial Chronicle

(2238)

Continued

from

Moab, Utah

Inc., Reading, Pa.
3,857 shares of common
stock (no par), of which 2,000 shares are to be offered
for subscription
by existing stockholders at $12 per
share, and 1,857 shares to non-stockholders who are resi¬
dents of Pennsylvania at $14 per share. Proceeds—For
purchase of mill. Office — 501 Crescent Ave., Reading,
Precision Products,

Penn

3

Nov.

notification)

(letter of

Underwriter—None.

Pa.

Penn-Utah

Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock (par three cents).
Price—15 cents per share.
Proceeds—For expenses incident to mining activities.
Office—206 N. Virginia Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
Aug. 4

it Pines Oil Co.,
15

Nov.

Helena, Ga.

Inc.,

Proceeds—For

share).

per

Underwriter—None.

working capital, etc.
Pittman

($20

par

Independence, Kan.

Drilling & Oil Co.,

Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and 60,000 sharps

to be offered in units of
unit. Proceeds—For
payment of note and working capital. Office—420 Citi¬
zens National Bank Bldg.,
Independence, Kan. Under¬
writer—Dewitt Investment Co., Wilmington, Del.
of

stock (par 10 cents)

common

share

one

each.

of

Price—$5

Nov.

per

it Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.
Nov. 22 filed 160,000 shares of common stock (no par).
Price—At current market at time of offering.
—For general corporate purposes.

Proceeds

Underwriter—Hemp¬

filed

22

'

shares

1,500,000

of

stock

common

(par

Price—50 cents per share.
Proceeds—For
working capital and mining expenses. Underwriter —
The Matthew Corp. of Washington, D. C.
•

Richmond

Homes, Inc. (11/28)
Oct. 25 filed 140,000 shares of common stock (par $1),
of which 80,000 shares are to be sold for the account of
the company and 60,000 shares for the account of two
selling stockholders. Price—$5 per share. Proceeds—
To repay a mortgage note, for the organization of a
wholly-owned acceptance corporation to be used for
financing purposes, for plant additions and the purchase
of additional equipment, for the purchase of land to be
developed as a new subdivision in Richmond, Ind., and
for working capital. Office—Richmond, Ind. Underwriter
—Cruttenden & Co., Chicago, 111.
& Electric Corp.

Rochester Gas

Nov.

4

on

the basis of
Nov.

shares to
Dec. 9.
—To

one

new

share for each

shares held

seven

Price—To

be supplied by

bank

amendment. Proceeds

for construction program.
York.

loans and

Underwriters—The First Boston Corp., New

Rogers Corp., Rogers, Conn.

to

be

offered

to

stockholders

on

a

5,883 shares
B common
basis

of

one

share for each four shares held.
Proceeds—To

Price—($29 per share).
working capital due to losses

replenish

sustained in recent flood.

Underwriter—Nor.'e

.

•

Porto Rico Telephone Co.

(11/29)

Nov. 7 filed

100,000 shares of common stock (par $20),
to be offered for subscription by stockholders of record
Nov. 28 at the rate of

one

new

share for each four shares

held; rights to expire on Dec. 13.
The International
Telephone & Telegraph Co., the holder of 399,495 shares
(99.87%) of the outstanding stock has waived its pre¬
emptive rights to purchase any of the new shares. Price
—To be supplied by amendment.
Proceeds—For con¬
struction program.

Underwriter—Merrill Lynch, Pierce,
Beane, New York.

Fenner &

San

Underwriters—To be determined by com¬

construction.

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Lehman Brothers; The First Boston

Corp.; White, Weld & Co. and Shields & Co.

(jointly).
Bids
Expected to be received up to 9 a.m. (PST)
on Nov. 29 at Room
1200, 111 Sutter St., San Francisco,
—

San Jacinto Petroleum Corp., Houston, Texas
Sept. 20 filed 500,000 shares of common stock (par $1).
Price—$15 per share. Proceeds—For payment of short
term loans and other

porate purposes.

unit.

of

common

Proceeds—For

stock.

general

Price

corporate

$6.75

—

per

Un¬

purposes.

Puerto

Rican iai

San

(11/30)

Alai, Inc.

Nov. 3 filed

cent).

1,250,000 shares of common stock (par one
Price—$1.50 per share. Proceeds—To purchase

-

property and for construction of sports stadium, etc.
Business—Playing of jai alai, with pari-mutuel betting.
Office—San Juan, Puerto Rico. Underwriter—F. H. Crerie &
•

Co., Inc., Neto York?

Radio

Oct.

28

Corp. of America

filed

$100,000,000

subordinated

debentures

31/2%

of 25-year

due Dec.

convertible

1, 1980 being offered

for subscription by common stockholders of record Nov.
17 on the basis of $100 of debentures for each 14 shares of

stock

held;

rights to expire on Dec. 5. Price—$102.50
(flat) per $100 principal amount. Proceeds—For property
additions and improvement; for further expansion and
development of the corporation's research, manufacturing
service

and

facilities

electronics

in

Underwriters—Lehman

Brothers

and

and

related

Lazard

fields.

Freres

&

Co., both of New York.

it Reading Tube Corp., New York (12/5-9)
16 filed 120,000 shares of $1.25 cumulative

Nov.

vertible preferred stock,

80,000 shares

are

principally to
ment

and

ment.

a

tures,

directors.

repay

a

con¬

1955 series (par $20), of which

to be offered publicly and 40,000 shares
class of persons consisting of manage¬
Price—To be

Proceeds—To

bank

corporate purposes.

Co., New York.

supplied by amend¬
$1,485,665 of 6% deben¬

redeem

loan

of

$987,500, and for general

Underwriter—Emanual, Deetien &
.

privately

indebtedness; and for general

through

officers

of

the

Statement

company.

/

Juan

Racing Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per share, of 200,000 shares for subscription by
stockholders of record April 30, 1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
derwriter—None.
Hyman N. Glickstein, of New York
City, is Vice-President.
San Juan Uranium

Exploration, Inc.
Aug. 19 (letter of notification) 925,000 shares of non¬
assessable common stock (par one cent). Price—12 cents
per share.
Proceeds—For expenses incident to mining
activities. Office
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
—

Sandia

Mining & Development Corp.
Sept 9 (letter of notification) 3,000,000 snares of capital'
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds
For mining expenses.
Office — Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
—

Sans

Souci

Hotel, Inc., Las Vegas, Nev.

Nov. 9 filed 1,428,000 shares of common stock

1,097,529

shares

to

are

be

stockholders at rate of 1%
record Dec.

(12/1)

(of which

offered for subscription by
shares for each share held of

(with rights to expire

1, 1955

30,471 shares

are

on

Dec. 31);

to be issued in payment for claims of
and firms aggregating $30,471; and

Estate Clearing House, Inc.
Sept. 14 (letter of notification) 270,000 shares
cumulative preferred stock (par $1) and

seven

of

common

—For construction of

of

two

of 7%
135,000 shares
(par five cents) to be offered in units
shares of preferred and one share of common
stock

stock.

individuals

300,000

shares

President

of

are

to be

company).

for working capital.

offered by George E. Mitzel,
Price—$1 per share. Proceeds

new facilities; to pay off notes; and
Underwriter—None.

Price—$2.05 per unit. Proceeds—For working
capital, etc. Office—161 West 54th Street, New York
Y.
Underwriter—Choice Securities Corp., 35 East"
12th Street, New York, N. Y.

Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds — For

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock

1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬

procurement agreement to be offered to certain mem¬
bers of the general public who are
acceptable applicants
and who are to become active policyholders in the com¬

writer—Barrett Herrick & Co., Inc., New York City.

N.

prepayment of outstanding 5%% sinking fund bonds due

porate purposes.

it Science Press of New Jersey, Inc.
Nov. 10 (letter of notification) 15,620 shares of common
stock
(no par).
Price—$5 per share.
Proceeds—For
building, equipment, working capital, etc. Office—Spur

Leo

Route

Price—$2

per

unit.

Proceeds—For

general

cor¬

Underwriter—None; to be offered by
Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬

tees.

Revlon

Products Corp.,

New York

(12/6)

518,

mile

west

of

the

Borough of Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.
a

of which

Shenandoah Gas Co., Lynchburg, Va.
Sept. 19 (letter of notification) 1,000 shares of common

pany

stock (par $1).

Nov.

14 filed

373,900 shares of

common

stock

(par $1),

272,067 shares are to be offered by the com¬
and 101,833 shares by certain stockholders. Of the

latter

shares, 33,900

are to be first offered directly to
employees. Price — To be supplied by amend¬
Proceeds—To complete payment for a plant newly

certain
ment.

L.

per

share. ,Proceeds—To James

President, who is the selling stockholder.
Office—315 Krise Bldg., Lynchburg, Va. Underwriter—
Scott, Horner & Mason, Inc., Lynchburg, Va.

acquired from Johnson & Johnson, in Metuchen, N. J.,
new equipment.
Business—Cosmetics and toilet¬

Nov.

ries.

stock

Underwriter—Reynolds & Co., New York.

Price—$7

Carter,

and for




Underwriter—None,

subsidiary, will handle stock sales.

Uranium, Inc.
300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office—Moab, Utah. Underwriter
—Ackerson-Hackett Investment
Co., Salt Lake City,
Shumway's Broken Arrow
(letter of notification)

Nov. 7

Shenandoah Gas Co., Lynchburg, Va.
3 (letter of notification) 1,000 shares

(par $1).

Price—$7

per

Co., Atlanta, Ga.

Southern Mining & Milling

(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz.
Underwriter — Franklin Securities Co.,
Sept. 14

Atlanta, Ga.

it Strouse, Inc., Norristown, Pa.
J
(letter of notification) 60,000 shares of common

Price—$1 per share. Proceeds—
capital. Office — Maine and Astor Sts.,
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc.,
Philadelphia, Pa.
stock
For

share.

10 cents).

(par

working

it Sturm (Ray L.), Inc., Bradford, Pa.
8 (letter of notification) 20,000 shares of common
stock.
Price—$1 per share.
Proceeds—To pay notes

payable, premiums due insurance companies, etc. Busi¬
ness—An
insurance agency.
Office—21 Webster St.,

of

common

Proceeds—To Mrs.

Underwriter—William T. Bowler & Co.,

Bradford, Pa.
I.

O. O.

Bradford, Pa.

F. Bldg.,

it Sulphur Exploration Co., Houston, Texas
Nov. 21
filed 600,000 shares of 6%
convertible
cumulative

tion by

non-

preferred stock to be offered for subscrip¬

stockholders

common

each

for

share

ferred

the basis of one pre¬

on

common

share

Price—At

held.

Proceeds—For construction and op¬
eration
of sulphur extraction plant.
Underwri.er—To
be named by amendment.
L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.
($2

share).

per

Summit

Springs Uranium Corp., Rapid City, S. D.
notification) 1,200,000 shares of common

Oct. 3 (letter of

stock (par 19 cents). Price—25 cents per share.
—For expenses incident to mining operations.

Harney Hotel, Rapid City, S.
Brickley, same address.

D.

Proceeds
Office—

Underwriter—Morris

1

.

VjJ.

•

it Superior Uranium Co., Denver,

Colo.
Nov. 9 (letter of notification) 29,600,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O.
Box 127, Arvada, Colo.
,

B.

Susan

Aug.

Uranium Corp., Carson City, Nev.

(letter of notification) 300,000 shares of non¬
common stock.
Price—At par ($1 per share).

11

assessable

Proceeds—For

mining expenses.

of Las

Office—Virginia Truck

Underwriter—Coombs & Co.

Bldg., Carson City, Nev.
Vegas, Nev.

Swank Uranium Drilling &

Exploration Co.

(letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds

Aug. 17
mon

—For

incident to mining

expenses

Utah., Underwriter—Honnold
Lake City, Utah.

Moab,

Uranium

Sweetwater

activities.

&

Co.,

Office—
Inc., Salt

Co.

(letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations.
Office—635 Judge Bldg.,

Sept. 9

Salt Lake City,

Underwriter—Skyline Securities,

Utah.

Inc., Denver, Colo.
Target Uranium Co., Spokane, Wash.
Aug. 12

(letter of notification) 1,000,000 shares of non¬
stock (par five cents).
Price—20 cents per
Proceeds
For mining expenses.
Office — 726

assessable

,

Real

pany.

general corporate purposes. Office—Boston, Mass.
but Sheraton Securities Corp., a

—For

cor¬

Underwriter—None, sales to be made

effective Oct. 10.

derwriter—Straus, Blosser & McDowell, Chicago, 111.

corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds

par

Calif.

one-half

share

(11/29)

Diego Gas & Electric Co.

Nov. 1 filed $18,000,000 of first mortgage bonds, series F,
due 1985. Proceeds—To repay bank loans and for new

it Prudential Loan Corp., Washington, D. C.
22 filed 111,000 shares of prior preferred stock
and 55,500 shares of 10-cent par common stock to be
offered in units of one share of preferred stock and
Nov.

initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each
25 shares of stock then held and (b) to employees of

Nov.

hill, Noyes & Co., New York.
•

$15,000,000 of 6V2% cumulative income sub¬
due Nov. 1, 1980 to be offered

debentures

ordinated

Nov. 10

Oct. 3 (letter of notification) a minimum of
and a maximum of 7,453
shares of class
stock

Corp. of America

Sheraton

Utah.

(11/28)

25; rights to expire on Dec. 12; unsubscribed
be offered to employees up to and including

repay

Underwriter—Scott, Horner & Mason,

Carter.

Oct. 31 filed

filed

200,000 shares of common stock (no par)
tb be offered for subscription by common stockholders

on

24,1955

Inc., Lynchburg, Va.

'

cent).

one

1,500 shares of common

(letter of notification)

Price—At

stock.

Jewel R.

it Reynolds Mining & Development Corp.,

53

page

Thursday, November

...

share.

—

Bldg., Spokane, Wash.
Underwriter — PercyDale Lanphere, Empire State Bldg., Spokane, Wash.

Paulsen

Charts,

it Technical
Nov.

17

stock

Inc.

of notification)

(letter

Price

(par $5).

—

2,300 shares of class B
Proceeds — For

$16 per share.

Office—189 Van Rensselaer St., Buf¬
Underwriter—None.

working capital.
falo

10,

N. Y.

American

Texas

Oil

Corp.

notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For drilling expenses, etc.
Office—216 Cen¬
Nov.

3

(letter

of

tral Bldg., Midland,

Tex.

&

Co., Inc., Houston, Tex.

•

Toro

Manufacturing Corp.

Oct. 25 filed 42,099

offered
the
as

for

basis

of

Underwriter—Kramer, Woods

shares of common stock (par $1) being
by common stockholders on
share for each four shares held

subscription

of

one

new

Noy. 15; rights to expire on Nov. 30. Price—$22 per
Proceeds—For working capital, etc. Underwriter

share.

—Piper, Jaffray & Hopwood, Minneapolis, Minn.

Boston, Mass. (12/13)
convertible debentures,
due Nov. 1, 1970.
Price—To be supplied by amendment.
Proceeds—To repay bank debt of Keleket X-Ray Corp.,
a subsidiary; for advances to or for account of Tracerlab
Development Corp. in connection with the construction
by that company of a new building .which is to be leased
by Tracerlab, Inc.; and for working capital for use for
it Tracerlab,

Nov.

18

filed

Inc.,

$1,500,000 of 5%

,

Volume 132

Number 5484

.

.

The Commercial and Financial Chronicle

.

Proceeds—For

working capital.
Office—5225
Blvd., Los Angeles, Calif. Underwriter—None.

700 shares of

in

units

consisting

shares

of

ceeds

For

stock

common

of

payment of

of

debentures

Price—$1,010

and

unit.

per

Pro¬

indebtedness, expansion, estab¬

Underwriter—H.

will

be

issuable

upon

exercise

of

the

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000
principal amount
of 6% 12-year
registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants).

Price—At

(in

denominations of $100 each
Proceeds—To refinance and dis¬

par

or

multiples thereof).
charge secured obligation.

Underwriter

McDonald,

—

Evans & Co., Kansas
City, Mo.

cents

13

Corp. of America

filed

common

stock

(no par).
per unit is $5
share. Proceeds—To acquire one life and one fire
insurance company, and one
mortgage loan firm. Under¬

Price—Proposed maximum offering price
per

writer—None; shares

to

be

sold

officers.

through directors and

Oct.

stock

(par

10

cents). Price—50 cents per share.
ceeds—For mining expenses. Office—510
Colorado

Denver, Colo.
Union

Nov.

15

of

Underwriter—Honnold & Co.,

South Africa

filed

Pro¬

Bldg.,

same

city.

(11/30)

$25,000,000 of external loan

bonds

to

be

dated Dec. 1, 1955

through

subscription

for each five held
25.

•

rights
of Oct,

as

—

Western
Nov.

10

Natural

Gas

ferred

share

for

each

ities.
•

U.

certain

other

facil¬

Underwriter—Dillon, Read & Co., Inc., New York.
S.

Automatic Machinery &

Chemical
(12/5-9)
Nov. 4 (letter of notification)
300,000 shares of class A
common stock (par 10
cents). Price—$1 per share. Pro¬

Corp.

ceeds

—

For

general

corporate

Office—8620

purposes.

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
Securities Corp., 135
Broadway, New York.
Service

Corp., Inc., Houston, Texas
filed 500,000 shares of common stock (par two
Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other

July 8
mills).

corporate purposes.
Postponed.

Underwriter

—

None.

Offering

(

com¬

(par 10 cents).
Price—50 cents per share.
Proceeds—For mining operations.
Underwriters—None,
but the following have been licensed to sell stock
in the

of

Fay C.

DeWitt

and

of

common

held-

stock

Nov.

Bryon

C.

Varberg, both

Minot, N. D.

Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
stock

—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah. Underwriter—
Trans-Western Brokerage
Co., New Orleans, La.
Utah Grank,

Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
Price—At par (SI per share).
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L.- LaFortune, Las Vegas, Nev.
stock.

Valley Telephone Co., Silverton, Ore.
3 (letter of notification) 10,500 shares of common
stock. Price—At par ($10 per share). Proceeds—To re¬
tire outstanding debts and short term notes. Underwriter
—Daugherty, Butchart & Cole, Inc., Portland, Ore.
if Vanadium-Alloys Steel Co., Latrcbe, Pa.
7 (letter of notification) 4.141 shares of common
stock (no par) to be offered to
employees pursuant to
an Employees' Stock Purchase Plan.
Price—At average
Nov.

of

$33 26

share.
Underwriter—None.
per

Proceeds —For




working

capital.

San

stockholders of record Nov. 16

stock

of

amount

debentures

on

for

the basis of $100

each

10

shares

held; rights to expire Nov. 30. Price—At

Proceeds—For

additions

and

par

improvements.

of

(flat).

Under¬

writer—Kuhn, Loeb & Co., New York.
Whitaker Cable Corp., North Kansas City, Mo.
Nov. 3 filed $500,000 of convertible sinking fund deben¬
tures due Nov.

1, 1970. Price—To be supplied by amend¬
retire bank loans, to acquire addi¬
equipment and for working <?fcrpital artcf 'ieneral
Proceeds—To

tional

corporate

Underwriter—Barret, Fitch, North &

purposes.

if Wilier Color Television System, Inc.
7 (letter of notification) $120,000 of 5%

ble income
mon

supplied

stockholders.

due 1966, 24,000 shares of com¬
and 120,000 common stock warrants

(par $1)

(the latter exercisable at $1 per share) to be issued on
of $100 of debentures, 20 shares of stock and
exchange for each $100 face amount of
receipts, notes or certificates of Bert M. Wilier, de¬
the basis

100 warrants in

ceased.

Underwriter—None.

Office—151

Odell

Ave.,

Yonkers, N. Y.

to

20

be

basis

filed

Southern

Gas

20,818 shares

offered
of

one

for

new

Zenith-Utah Uranium

city.

of

Co.,

subscription
share for

Inc.

common

by

each

■'

stock

stockholders

four

shares

on

held

as

■'

■

City Electric Co.
England, President, announced that the
directors are now considering the sale to the public of a
small amount of common stock (not more than 75,000
shares) early next year. Underwriters—Probably Union.
Aug.

1^ B.

L.

York.

Smith, Barney & Co., both of New

'

Atlas

Plywood Corp.
was announced company plans to issue and sell
$3,000,000 of 5% sinking fund debentures and $3,000,000

Oct. 12 it

of 5V2%

convertible

edness.

subordinated debentures.

Proceeds

inventory and to retire subsidiary indebt¬

Meeting—The stockholders

on

2 voted

Nov.

to

proposal to increase the authorized common-

a

to provide
exchange of stock for minority shares to Plywood,
Inc., for conversion of proposed new debentures and for
possible future acquisitions of property. Underwriter—
for

For
&

convertible

Co.,

debentures, may be Van Alstyne, Noel
York. Offering—Expected before end of

New

1955-

* Baltimore & Ohio RR. (12/1)
the company at 2 Wall
New York 5, N. Y., up to noon (EST) on Dec. 1
purchase from it of $3,000,000 equipment trust
cates, series GG, to be dated Jan. 1, 1956 and to
Bids will be received by

in

15

equal

instalments

annual

of

Street,
for the

certifi¬
mature
each from

$200,000

Jan. 1, 1957 to

1971, inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Maine

&

RR.

Oct. 20 stockholders approved a plan to offer $105

prin¬
income debenture
bonds
interest for the year 1955) in exchange for
each of the outstanding 274,597 shares of 5% preferred
stock (par $100). Not in excess of $28,874,564 of bonds
cipal amount of series B 5%

(plus 5%

would be issued.

*

<

.

'

if Cavitron Corp., Long Island City, N. Y.
Nov. 17 it was announced that this company is consider¬

New

cember.

Underwriter—Schuster & Co.,
Offering—Expected sometime in De¬

for

extensions

and

improvements

of

to

—

if Chicago, Milwaukee, St. Paul & Pacific RR.
(12/6)
will

additional

Under¬

Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision
of
corporate structure,
etc.
Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To
be withdrawn.
,

Wycotah Oil & Uranium, Inc., Denver, Colo.
Nov. 10 filed 1,500,125 shares of common stock (par one
cent) to be offered qnly to the owners of percentages of
working interests in certain oil and gas leases and to the
certain

for such working
at

Citizens
8

uranium

properties, and in exchange
interests and properties. Price—Shares

arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.
an

Wyoming-Gulf Sulphur Corp.
10 filed
971,000 shares of capital stock (par 10
cents), of which 700,000 shares are for company's ac¬
count
and
271,000 shares for account of two selling
Oct.

Price—On the over-the-counter market at

prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for Cody plant, for
acquisition of additional site, and related activities.

&

company,

744,

Room

at

National

recommended

scares of
the

on

basis

common
of one

stock
new

Bank, Atlanta, Ga.
the sale of 100,000

to stock¬

(par $10)
share

for

each

nine

(subject to approval of stockholders in Jan¬

Price

uary).

Hutzler; Kidder, Peabody & Co.

Southern

directors

the

holders

&

Bros.

Salomon

shares held

& Gas

Oil

the

1956, and to mature in 30 equal semi-annual instalments
of $250,000 each from July 1, 1955 to Jan. 1, 1971, in¬
clusive.
Probable bidders: Halsey, Stuart & Co. Inc.;

Office—414

Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.

by

Bldg., Chicago 6, 111., up to noon (CST)
on Dec.
6 for the purchase from it of $7,500,000 equip¬
ment trust certificates, series UU, to be dated Jan. 1,

Nov.

Nat'l

received

be

Station

Wonder Mountain Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
Denver

York.
-

the

Office — 235 Broad St., Lake Geneva, Wis.
The Milwaukee Co., Milwaukee, Wis.;
Harley, Haydon & Co., Inc. and Bell & Farrell, Inc.,
both of Madison, Wis.

then

/

Prospective Offerings

Inc.,

(par $10),

and

stockholders.

V

«

.

Atlantic

Union

and

valued

Corp.

City, Utah. Underwriter—Bel-Air Securities Corp.,

bank

to be

Inc.,

same

Bids

of

Co.,

Lake

rights to expire on Nov. 29. Price — $16.50 to
stockholders; and $17.50 to public. Proceeds—To repay

Woods

Underwriter—Blyth &

Sept. 14 (letter of notification) 6,000,000 shares off class
A common stock. Price—At par (five cents). Proceeds
—For mining expenses.
Office—45 East Broadway, Salt

Nov. 3;

loans

capital

ing additional financing.

Wisconsin
Oct.

by

(12/6)
stock (par $1).
amendment.
Proceeds—To
of

Francisco and New York.

Boston

converti¬

debentures

stock

shares

stock from 1,400,000 shares to 2,400,000 shares

Wheeling Steel Corp.
Oct. 23 filed $19,097,800 of 3%% convertible debentures
due Nov. 15, 1975, being offered for subscription by com¬

owners

Nov.

selling

405,365

be

approve

(par 1623 cents).

Price—50 cents per share. Pro¬
ceeds—For expenses incident to
mining activities. Office

filed

Underwriter—White, Weld & Co., New York.

—

Utah-Arizona

16

Price—To

—To increase

Underwriters
of

stcck

company:

shares

20

Offering—

if Yuba Consolidated Gold Fields
Nov.

Securities Corp. and

(11/30)

property.

if Uranum Exploration, Inc., Minot, N. D.
14 (letter of
notification) 300,000 shares

Nov.
mon

—

Crerie & Co., Inc., both of New York City.
Indefinitely postponed.

29; rights to expire about Dec. 13. Price—
supplied by amendment. Proceeds—For explora¬
tion and development programs.
Office—Houston, Tex.

lumbia

Universal

25; rights to expire on Nov.
Proceeds
For. expansion.

Co.

funds; and for

reserve

general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.

com¬

share

one

be

Nov.

and

claims; for working capital and
other

stockholders
of

183,003 shares of convertible preferred
stock, 1955 series (par $30), to be offered for subscrip¬
tion by common stockholders on the basis of one pre¬

Co., Kansas City, Mo.

railroads

of

shares
to

basis

filed

velopment (World Bank), to be used to carry out a
transportation development program, including
improve¬
the Union's

the

on

—

from the International Bank for
Reconstruction and De¬

to

incident to

expenses

Price
$12 per share.
Office—Weaverville, N. C. Underwriter—R. S. Dickson
& Co., Charlotte, N. C.

ment.

ments

For

718

stock

(to consist of three, four, five and 10year bonds).
Price — To be supolied by amendment.
Proceeds
Together with £9,000,000 to be borrowed
—

—

—

Co.
(letter of notification) 18,500
(par $10), being offered

10

mon

principal
common

Office

and 300,000 shares for account of Stancan
Corp.
Price—$1.50 per share.
Proceeds—For
under purchase and option agreements for

company

payments

Western Carolina Telephone
-

mon

Union Gulf Oil &
Mining Corp.
Sept. 9 (letter of notification) 6b0,000 shares of

Proceeds

of

Uranium

Co., Provo, Utah.

Title Guarantee Bldg.,
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

To

797,800 shares of

share.

per

about

Union

Oct.

Investment

Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non- "
assessable common stock (par one cent).
Price — Five

common

presently outstanding. Price—
Each warrant
currently entitled the holder to purchase
1.27 shares at $17.76
per
share for each one share
specified in the warrant certificate.

P.

mining activities.

Tri-Continental Ccrp., Nevy York
Oct. 27 filed 2,573,508 shares of
common stock (par
$1),
purchase warrants

To be determined by competitive
Stone & Webster Securities

—

Probable bidders:

21 filed 2,000,000 shares of common stock ,(par
cents).
Price—25 cents per share.' Proceeds—To explore and acquire claims, for purchase of equipment...
and for working capital and other corporate purposes.

Proceeds—For repayment of
loans, working capital, etc.
1810 Smith Tower,
Seattle, Wash. Underwriter
-National Securities Corp.,
Seattle, Wash.

which

.

Nov.

Office

stock

.

if Wagon Box Uranium Corp., Provo, Utah

100,000 shares of non¬
Price—At par ($1 per share). '

stock.

(12/6)

Wash., and members of his family. Under¬

Yellowknife
Uranium Corp.
Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account

Witter

Dean

five

(letter of notification)
common

—

Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids—
Expected to be received up to 11 a.m. (EST) on Dec. 6
at Room 1703, 15 Broad St., New York, N. Y.

100

Travelfares, Inc., Seattle, Wash.
14

Underwriter

gram.

bidding.

assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg.,
Philadelphia, Pa. Under¬
writer—Albert C. Schenkosky,
Wichita, Kansas.

assessable

Underwriter

purposes.

Virginia Electric & Power Co.

lishment of additional
offices; professional and editorial

Sept.

corporate

Seattle,

writer—None.

Nov. 4 filed. 125,000 shares of cumulative preferred stock,
1955 series (par $100). Proceeds—For construction pro- "

(par 10 cents), to be offered

$1,000

stock.

common

(par $1).

Price—At the market. Proceeds—To August Buschmann,
of

Wilshire

Philadelphia, Pa.
$247,000 of 5V2% con¬
debentures, series A, due Sept. 1, 1965 and 24,-

vertible

4

ordinated

& Co., San Francisco, Calif.

Traveler Publishing
Co., Inc.,
Sept. 29 (letter of notification)

stock

common

supplied

other

unit.

/

r

1

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of

debentures due Dec.<l, 1970.
Price—To be
Proceeds—For purchase of
by amendment.
land, buildings and equipment for engineering, market¬
ing and manufacturing, and for working capital and

Nov. 14 (letter of notification
45,OCO shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 snares of
class A common stock (par
$1) to be offered in units
of one share of each class of stock.
per

.

^

if Varian Associates, Palo Alto, Calif. (12/8 K
Nov. 16 filed $2,000,000 of 15-year 5% convertible sub¬

if Trans-American Development Corp.

Price—$1

-r

•

-

r.

,

general corporate purposes. Underwriters—Lee
Higginson Corp. and Harriman
Ripley & Co. Inc., both of New
York, and Estabrook & Co., Boston and New York.

55

(2239)
:

$30

—

share.

per

Proceeds

To increase

—

capital and surplus.
Craig Systems, Inc.
was reported company plans early registra¬
tion of 175,000 shares of common stock, of which 50,000
shares are to be sold for the account of the company and
Sept. 26 it

shares

125,000
holders.

for

account of certain selling stock¬
Hemphill, Noyes & Co., New

Underwriter

—

York.

.

if Cumberland Corp., Lexington, Ky.
19 it was announced public offering

Nov.

is expected

shortly after Jan. 1 to consist of $900,000 of 5% sinking
fund debentures and 90,000 shares of common stock to
be offered in units of

of

stock.

plant

a

Price—$1,100

$1,000 debenture and 100 shares
per
unit.
Proceeds—To build

charcoal brickettes and chemical by¬
notably furfural. Underwriters —William R.
& Co., Los Angeles, Calif.; and Carl M. Loeb,

to

make

products,
Staats

Rhoades

sometime

&

Co.,

New

York.

Registration

—

Expected

in December.

Continued

on

vaae

56

56

The Commercial and Financial Chronicle

(2240)

Continued from page

Stuart

55

Co.

&

Inc.;

Salomon

Bros.

&

Hutzler;

if Danly Machine Specialties, Inc., Chicago, III.
it

reported

was

if Modern Homes Corp.
21 it was reported

plans to issue and sell

company

Power

&

Light Co.

common

publicly
common

—

New Orleans

'

stock financing early in

Oct.

1956,
probably first to stockholders (this is in addition to bond
and preferred stock financing planned for Dec. 13). Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
W.
C.
Langley
& Co.
and
Union
Securities
Corp.
some

offer
some

company

Business
Manufactures prefabricated homes.
Offices—Dearborn, Mich, and Port Jervis, N. J. Under¬
writer—Probably Campbell, McCarty & Co, Inc., De¬
troit, Mich.

Sept. 28 it was announced that the company expects to
undertake

may

$1,000,000 of convertible debentures and
stock.

Co., Inc., Chicago, 111. This will represent the first public
offer of the company's stock.
Delaware

(Mich.)

Nov.

180,000 shares of its common stock. Proceeds—For gen¬
eral corporate purposes.
Underwriter—A. G. Becker &

it

24

Public Service Inc.

reported

was

(1/11)

plans sale of 60,000
shares
of
cumulative
preferred
stock
(par
$100).
Underwriter—To be determined by competitive bidding.
company

(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First Boston Corp.

bidders:
W.
C.
Langley
&
Co.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
Weld
&
Co.; Kidder, Peabody & Co. and Stone &
Webster Securities Corp.
(jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated.
Bids—Ex¬

(jointly); White, Weld & Co. and Shields & Co.(jointly);

pected

Probable

Lehman Brothers.

Nov.

Dolly Madison International Foods Ltd.
Nov.

15

it

announced

was

that

Foremost

Dairies, Inc.
intends at a future date to give its stockholders the right
to
purchase its Dolly Madison stock.
Underwriter—
Allen &
•

Du

Aug. 10 it
suance

2

to

stockholders

of

Allen

B.

Du

its

to

Co.

handled

nancing

some

Du

Mont

Stockholders

ago.

years

class

of

A stock

Federal

5%

it

issue

of

debentures, together with

chase

warrants.

Proceeds—To

derwriters—H.
Stone

&

fi¬

Laboratories

M.

Motor

it

6

Byllesby

are

common

reduce

&

considering

Co.

bank

(Inc.)

stock

an

pur¬

loans.

Un¬

and Hayden,

•

Co., Detroit, Mich. (1/18)
a
public offering of class A
is expected shortly after Jan.
1, 1956.

stock

common

The stock to be sold will be 6,952,293 shares
the 46,348,620 shares to be owned

(or 15%

1956

on

announced stockholders will vote Nov. 25

reported

company

sell

e.arly next

$30,000,000 of bonds. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
determined

Freres

&

Co.

Hutzler

Corp.

Kidder,

Offering

Peabody & Co.; Equitable
Expected in February or

—

March.

from

the

gas

$260,000,000

for

three-year

period

However, he stated, it will also be

secure

com¬

with the Federal Power

cost

River to

the

Gulf

Coast

of

It is estimated that this gathing

approximately $150,000,000.
& Hutzler, New York.

plans to offer to its

company

common

stockholders

on

a

record date to be determined and announced

Concurrently, 100,000 shares

are

to be offered

to

the

public for the account of two selling stockholders.
Proceeds—Together with funds from a long-term loan
of $3,700,000 from an insurance company, to be used for
expansion and general corporate purposes. Underwriter

Pennsylvania Electric Co.
Oct. 28 it
about
—

Registration—Ex¬

necessary

a

(E. J.)

Co.

Proceeds—For

and

(1/9-13)

program

and

and
(par

•fc Pennsylvania PR.

(12/7)

Bids

by the

Oct.

Under¬

will

—

15.

22

gram.

Missouri

Bids

are

Pacific

RR.

received

Riddle

Airlines, Inc.

offer to
right to subscribe for 1,200,000 addi¬
tional shares cf common stock (with an oversubscription

Nov. 2 it

announced company plans soon to

was

its stockholders the

privilege). Underwriter—Eisele & King, Libaire, Stout
& Co., New York.

if Seattle-First National Bank, Seattle,
Wash.
Nov. 22 it

each

$85

per

expected to be received by the
company up to
011
^ec' 8 ^or
Purchase from it of $2,-

at Room

1811,

it

was

that

announced

about

Feb.

24

offer its stock¬

1956, the right to subscribe
100,000 additional shares of

18,
for

on the basis of one new share
eight shares held. Price—To be not less than
share. Proceeds—To increase capital and sur¬

Underwriter—Blyth & Co., Inc., Seattle, Wash.

plus.

Texas

Oct.

Industries, Inc.

stockholders

11

shares of

new

issue

of 30,000

(no par value),

of which

authorized

common

stock

a

new

initially issue 10,000 shares bearing a $5
having a redemption value of $105 per
Proceeds—For expansion program. Underwriter

it is planned to
and

—Rauscher, Pierce & Co., Inc., Dallas, Tex.

if Texas Utilities Co.
18, the directors authorized the sale of additional
shares of common stock to raise approximately $15,000,000. Proceeds—For further investment in common stocks
Nov.

purposes.
Un¬
competitive bidding.
Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Lehman Brothers and Bear, Stearns & Co.
(jointly); The First Boston Corp. Offering—It is antici¬
pated that the new stock will be marketed during the
first quarter of 1956.

of

subsidiaries

for

and

other corporate

determined

be

by

bidders:

Van Norman Co.

25, it was announced stockholders on Nov. 30 will
on approving a change in name of company to Van
Norman Industries, Inc. and on creating an authorized
issue

400,000 shares of $2.28 convertible preferred
(cumulative to the extent earned). Proceeds—
acquisitions.
of

stock
For
•

Westcoast

Nov.

it

21

17

County Natural Gas Co.
it

$600,000 of

was

reported

common

company

stock.

plans

sell

to

about

Underwriter—Bache &

'

New York..

.

Transmission

was

.

Co.,

Co.,

reported company

Ltd.

plans to issue

now

publicly over $20,000,000 of securities, probably
in units of debentures and stock. Bonds are expected to

and sell

be

Proceeds—For new pipe line.
Dillon & Co., New York.

placed privately.

derwriter—Eastman,
•

Western
23

mon

non-cumulative
of

stock

|

cumulative preferred stock,

holders of first 7%

4%

Un¬

Maryland Ry.

record

preferred

Nov. 22,

on

stock

1955, were

and com¬
given the

right to subscribe on or before Dec. 7, 1955 for
shares of additional common stock at the rate

128,597
of one

shares, regardless of class, held. The
Baltimore & Ohio RR. will subscribe for 55,696 shares
of the additional stock to which it is entitled as owner

share for each six

of

shares

334,177

of

Western

Maryland's

The offer of the remaining 72,091

stock.

Price—$41

per

share.

outstanding

shares is being

Proceeds—To be

applied toward the payment of all dividend
arrears on
the first 7% cumulative preferred stock, amounting to

$19,250,070. Underwriters—Morgan Stanley & Co.,
York, and Alex. Brown & Sons, Baltimore, Md.

New

Westpan Hydrocarbon Co.
Sinclair Oil Corp. has agreed

March 2 it was announced

investment of 384,380
(52.8%). The time in which
sell their holdings has been extended by

with the SEC to divest itself of its

of

shares

Westpan

Sinclair may
to

Dec.

21,

stock

1955.

Underwriters—Union Securities

Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co. White, Weld &
Co., New York, may be included among

if Whirlpool-Seeger Corp.
Nov. 14 it was reported that

the bidders.

secondary offering of
planned the week of
Nov. 21. Underwriters—Blyth & Co., Inc. and Goldman,
Sachs & Co., both of New York.
a

150,000 shares of common stock is

York County

shares of

800,000

Underwriters—Porter, Stacy & Co., Houston, Tex.;
Corp., San Antonio, Tex.

Pike

Oct.

from

Halsey,

Jan.

(par $20)

capital stock
for

announced bank plans to

record

before

or

on

(1/18)
was

of

holders

SEC
company,

and Muir Investment

(12/8)

625,000 equipment trust certificates due
annually
Jan. 1, 1956 to 1971 inclusive.
Probable bidders:




be

additional capital stock would be offered for
public sale
after the first of next year.
Proceeds — Estimated at
about $2,000,000, will be used to pay for expansion
pro¬

writer—-Reynolds & Co, New York. Offering—Expected
week of Jan.
9, 1956. Registration
Planned for about
Dec.

Corp.; Smith, Barney & Co.; Harriman
Bids—Expected Jan. 17.

Pigeon Hole Parking of Texas, Inc.

Proceeds—For research

working capital.

by

Bldg., Philadelphia 4, Pa., up to noon
(EST) on Dec. 7 for the purchase from it of $11,595,000
equipment trust certificates, series EE, to be dated Jan. 1,
1956, and to mature $773,000 annually from Jan. 1, 1957
to 1971, inclusive.
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. &
Hutzler;; Kidder, Peabody
& Company.

'

development

Proceeds

construction.

Suburban Station

10 shares now
held; rights to expire on Dec. 7. Price—
$40 per share. Proceeds—To increase
capital and surplus.
Underwriter—Cyrus J. Lawrence Securities Corp, New

To be named later.

bonds.
new

construction

determined

The First Boston

^ stockholders of
record Nov. 10 were
given the
right to subscribe for 10,000 additional shares of
capital
stock (par $10) on the
basis of one new share for each

Price

of first mortgage
loans and
for

program.
Underwriter—To
competitive bidding. Probable bid¬
ders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.,

be

Ripley & Co. Inc.

iLWai.s announced company plans to issue
~®»9
shares of convertible preferred stock

!•

,i

,|

$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under¬
writer—Probably Smith, Barney & Co., New York.

underwritten.

Long Island Trust Co., Garden
City, N. Y.

eKn\

bank

repay

Pennsylvania Electric Co. (1/17)
7 it was reported company proposes issuance and
sale of $8,000,000 of preferred stock early next year.

reported company is
considering a public
offer, following consolidation of nine stores into
one
parent corporation which is
expected before the end of
the year
Underwriter—Carl M. Loeb, Rhoades &
Co,
New York.
Offering—Expected in January.

$50).

$20,700,000

To

Nov.

was

Magr.avox Co.

reported company plans to issue and sell

was

Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc. Bids—Expected Jan. 17.

'

York.

•

April 9 stockholders approved the possible issuance of
a
convertible debenture issue. This would not exceed

second

Boston

—

if Korvette

•

Pure Oil Co.

Nov.

(1/17)

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

large portion through public financing. It is
a major part will be in the form of
debt
financing. No such financing is contemplated during the
current year, nor have the times or
methods of financ¬
ing been definitely determined.
Underwriter
Kuhn

Nov. 21 it

—

Oct.

right to subscribe to 213,845 new common shares
(par 83Vs cents) in the ratio of one new share for each

1956-1958)

Co., New York.

Underwriters

bonds.

Under¬

Bros.

the

quite likely that

Loeb &

Probably Stone & Webster
Securities Corp., The First Boston Corp. and,jpmith,
Barney & Co. Halsey, Stuart & Co. Inc., is reported to
head a group to bid for approximately $25,000,000 of

five years.

Probable

of necessity to
build a
pipeline off-shore the coast of

Sabine

•

the next

abreast of estimated load growth over

to keep

vote

be derived from retained
earnings and depreciation

reserves.

•

20,

ic Outboard, Marine & Manufacturing Co.
Nov. 22, Joseph G. Rayniak, President, announced that

L. Block, President, announced that a
portion of the required funds for the com¬
expansion program (estimated to cost approxi¬

mately

•

Dec.

3, Joseph

pany's

to

dated

certificate

submarine

writer—Salomon

substantial

will

application

—Morgan Stanley & Co., New York.
pected in the near future.

Inland Steel Co.
Nov.

certificates

annually

a

an

bonds, but company announced
it has no present plans to issue or sell any bonds under
this mortgage.
The company has scheduled a. largef
scale expansion program, involving $80,000,000 in, order

company

bidders:

an

for

will

system

10 held

Blyth & Co., Inc. (jointly); Lehman
Securities Corp. and Salomon Bros. &

(jointly);

Securities

has filed

later.

and

Brothers, Union

mature

trust

the State of Mississippi.

the
may

in New York
Nov. 30 for the purchase from it of

on

Probable

Louisiana

about

year

1970.

364-mile

Co.

was

to

and

(11/30)
by the

Stockholders

and refunding mortgage

share.

Ry.

received

to the extent
on
Oct. 20
additional $25,000,000 first

sources—at least

dollars."

authorized the issuance of

dividend

equipment

Commission

Houston Lighting & Power Co.
it

be

(EST)

noon

pany

to

31

preferred stock,

million

several

of

outside

from

purposes

derwriter—To

common
stock from 1,050,000
2,100,000 shares to provide for new possible
financing in connection with proposed acquisition of
mining properties in Mexico.

Oct.

plan of exchange providing for the
exceeding $58,131,150 of new un¬

a

not

if Offshore Gathering Corp., Houston, Texas
Nov. 18 David C. Bintliff, President, announced

increasing authorized

shares

will

up to and including Dec.
Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Kidder, Peabody & Co.

20,

Loeb & Co.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane; and White, Weld & Co. Regis¬
tration—Expected the latter part of December.

was

to

will

$1,300,000

of

Kuhn,

Nov. 22 it

21

non-convertible

Northern Pacific

up

by the Ford Founda¬
following reclassification of the stock). Price—It
was reported that the
offering price was expected to be
around $60 to $70 per share.
Underwriters—Blyth & Co.,
Inc.; The First Boston Corp.; Goldman, Sachs & Co.;

Fresnillo

of

Dec.

on

mortgage

Bids

tion

•

approving

stockholders

include 1955 interest.

announced

was

Hutzler;

&

bonds, series B, dated Jan. 1, 1956, in
exchange for present $69,179,300 of 4!/2% convertible
general income mortgage bonds, series A, due July 1,
2022, on the basis of $105 of new series B bonds for each
$100 of series A bonds plus $5.25 in cash, which will

Co., New York.

Ford

Nov.

directors

announced

was

announced

convertible

come

15

Bros.

series A, on the basis
of $105 of debentures for each $100 par value of pre¬
ferred stock, plus $5.25 in cash ($5 of which will be
paid as dividend on preferred for year 1955); and (b)
of $72,638,265 of new 5% non-convertible general in¬

Pacific Electric Co.

Nov.

Salomon

New Haven & Hartford RR.

was

(a)

Halsey,
Kidder,

Probable bidders:

100-year 5% debentures, dated
1,1.956, in exchange for present $55,363,000 par value

Jan.

Oct. 10 approved formation of Broadcasting firm.

on

18 it
on

issuance

This

Laboratories

15, 1956-1970.

Co.

&

secured

offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel

derwritten.
&

stockholders.

and

annually Dec.

vote

Mont

to issue

plans

company

of equipment trust certificates to mature

Nov.

Laboratories, Inc. of 944,422 shares of common stock as
a
dividend, contemplates that additional shares will be
offered

announced

was

if New York,

Broadcasting Corp.
announced that corporation, following is¬

Dec.

it

8

RR.

sell $6,6G0,000

Inc.;
Peabody & Co.

was

on

York Central

Stuart

Co., New York.

Mont

Jan. 11.

on

New

Light Co.

Power &

April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction

Peabody & Co.
Nov. 21

Puget Sound

Kidder,

Thursday, November 24,1955

...

Gas Co., York, Pa.

contemplates the
series of ita
first mortgage bonds, in an aggregate amount not yet
determined.
Proceeds—To pay for new construction
and probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.: A. C. Allyn & Co. Inc.; White,
Weld & Co. and Shields & Co.
(jointly). It is also

June

29

issuance

it

was

announced

company

and sale later this year of a new

possible that issue may be placed privately.

Volume

132

Number 5484

.

.

.

The Commercial and Financial Chronicle

(2241)

Investing for Income?

Mutual Funds

National Preferred

ui

is a mutual fund providing a
supervised investment in a di¬
versified group of preferred
Stocks selected for their income

possibilities. Prospectus and
other information may be ob¬
tained from your investment
dealer

Research

&

1954,

New

Broadway, New York 5,

New York

share

sales

in

October, while below the record set in

September of $126,970,000,
sales and amounted to

redemptions dropped in October to $32,346,000 from
$35,434,000 redeemed by investors in September. Total redemp¬
founded 1928

totalled

104

th

|| 27c

lation

jig income and 88c

a

§|
i|

record December 2, 1955.
walter L. morgan
President

£2

a

000

of

the

Association's

time

same

at the end of

last year.

new

open-end member

Total assets

funds

share

with

four

due

arrangement

the

tion.

that

the

and in the exof Union Service Corpora-

companies

all

ready
that

at

being

is

industry,
broad

services

supplied
the

of

at

assets

machinery
and °tber productive equipment—
ab°ve the present level of approx-

cost

in

the

commercial

which

costs are spread can be further enlarged there is a
saving in

This compared with

.

share

half of such expenditures for the
first

nf

;er Moves
iVlCFgCr

Investors

National

recently
frmr

of

folio

,cted
g.ierm

secura.es

f"^XH
GROW

nwnpd

of

fund

is

held^v

made

in

purchased

been

invest-

tion and Phibro Chemicals, Inc.

total

of

which

from

other

three

dealer.

more

Boston, Mass.

' funds

of

been

seven

not

also

combined

mutual

companies

concerns

—

with

and five

funds

those

of

the

to

bring the
figure, and
advantages
only to the three funds, but
than six million

has

to

a

resulted

fourth

associated

com-

Tri-Continental
Corporation, the largest diversified closedend

investment

nation.

ord

Investors'

company in the
These advantages, largely

investment

rec-

low
operating
costs,
major role in the deci-

and

played

a

sion of the four companies to combine their assets with those of the

investment company.

Previously
assets

those

of the

the

Howe Plan

fund,

of

were

Fund, a
Whitehall, and

by

the

Ferncliff
a

Trading

privately-owned

and The Connecticut Investment Management Corporacompany

tion,

a

PanY»
The

"e

Production of television receiv-

1955,

is

ap-

ing

sets

in

1955

will

set

new

a

high at 8,000,000 units to
tQp the previous peak of 7^60,000
manufactured in

oofimated

in

"Keeping Up,"

the

1950, it

ably

publish^

three

mutual

investment

are
currently
tiating another similar

and have three

nego-

was

in

prospect,

Randolph disclosed. The
transactions represent an exchange
assets

of

the

selling

re-

financing

permanently

stop

this

"Perspective?'

For about the last 15

vears

new

J>or apoui ine last id years, new

Ed t^Sn^pK

by Tel-

ers>

durables

in

the

formation

of

J.rs aurapies in tne loimation of
interesting to note," the fixed capital. Only recently, the
publication said, "the reversal in publication
states, has
private
-

.

"It

the

is

trend

toward

of lower priced

receivers

opposed

as

construction in terms of
dollars "attained the level

manufacturing

table

model

to

the

TV

The

at

analysis

72.6%

the

nearly

said

that in May
being produced

of the sets
of

table

model

Besides
causative

in

By August the trend was cornpletely reversed, with console pro-

to

in

and

that
table

month

rising

1.

to

sets

in

the

last

higher

five

factors

demand, the
following

for

the

since

upsurge

World

War

The rapid
percentage gains

ing,
and

commercial

gS contrasted with the lower
sets bought in the early

3.

and

govern¬

machinery and services

the

house

of

families;

An increase in manufactur¬

mental

priced

months

since

the

in population and

models declining

purchase

lists

construction

2.

to

half times

II:

52%.

public

a

deferred

publication

con-

sole type.

duction

and

one

then."

variety

compared with 26.3% of the

46.6%

stable
of 1926

while total output of the
economy
constant value# has' liicreasei

con-

sole models."

transaction^ 1955

more

Mr.

not

program, says

nnhliratinn

evision-Electronics Fund.

refusal of voters in the

amendments may delay but
prob-

record

sets

An

program is re-

cent election to
approve

closed-end investment com"This reflects " the tDublication
by Broad Street Investing, explained, "the'
tendency of the

companies

of

of

expanded highway

To Set Record

were

acquired

Corporation,

in

pany,
r

tional

mutual

privately-owned companies—have

from

Berkeley Street

mutual

Fund, Inc.

available

The Parker Corporation

a

the

assets

new

associated

Assets

each

over recently by
National Investors were those of
7 ?
corporation,
Metals & Alloys Export Corpora-

the

which, in addition to National Investors, include Broad Street Investing Corporation and White-

on

companies.

Assets taken

9e

of

^toeko

grand

$6,217,000

hall

ment

The similarity in investment polof these companies, plus Na-

a

have

this

200

largely

mmnanv

three

**£

pr.ne.pab

investment

your

pomnaninq

"erowth"

two investment
prospectus

of

assets

company.

This

i^eanXNCO^
ainable «ithout
A

the

securities

alreadv

menf

and President of the four invest¬

VaboJ;$O2W500d00™lipp £a?i
Brothers £

tvne

come

unique to this group of companies,
were
spelled out by Francis F.
Randolph, Chairman of the Board

Corporation

companies, since June of 1953, by

funa

of

nriuatplv

ment

ime

risk

acquired

loZing
those

irporated

Investors

u.Muuw

ketable

of

»pi,al^ndJneome.

.al

-

months

parent, says the publication.

TV Production

Steps Up

nine

....

#

Fund

con-

and

.

icorporated

industrial

In public construction, "the continuing deficiency" of highways
schools, comprising more than

must

bear, and a consequent gain)to the
individual shareholder.

holdings of $441,283,000 at the end of September, also 6.1%

of assets.

company

and

struction, "Perspective" observes,

the amount of such costs that each

investment

—

imately $25 billion annually point
1° a "high level of demand" for

the

that

over

the

$438,427,000 at the end of

techniques and

projected higher investment in

a

al-

a

lowest

time

every

base

v

New production

producers' durables

these

among

more

and business.

cost.

of

as

and rurpl areas by both families

Union Service furnishes in-

companies

September, 1955.

funds totalled

<t^nn nnn nnn

mates of a greater population by
increased household formations, larger families and a contmued migration to the suburbs

research and administrative services to the investment

accumu¬

investment

In. longer range, the prospects
cpnlmue favorable, the publication says> citing as evidence esti-

to

Cor-

for

same

?

a

than $50(W0,000.

enjoy, whereby they

are

^

Sfudepartment of Cal!?S'' which admirus-

th

and

companies,

penses

$7,257,355,000

were

October, representing 6.1% of total net assets.
cash

is

Tri-Continental

ficers, who

Cash, U. S. Government securities and short-term obligations
held by the 125 mutual

vi„

Li

poration in the salaries of the of-

6.2%

31, amounted to $7,216,241,000, compared to $5,338,517,-

the

at

unusual

This

in

f^

vestmens

investors opened 9,430

as

maturities

also in the

are

Fund.

these

With

assets

share from real-

securities profits payable
December 28, 1955 to stock of

a

accounts, bringing the total for the first 10 months of 1955

of Oct.

as

H ized

||

during October

stimulant of business construction

to 93,957.
Net

share from net investment

a

$382,395,000,

$332,861,000.

continued

consecutive

| quarterly dividend

to

period last year when 10 months' redemptions

same

shares

the

j
Popularity of regular purchase plans for mutual fund shares

Its

announces

amounted

redemption ratio of 5.3% of Oct. 31 assets, compared with
ratio for the

fund,
and
the
flexibility
and
liquidity of owning mutual fund

Whitehall

1955

Payments and

shorter mortgage
residential building,
the outlook for building in 1956
ls a bnSht one due mainly to the

Investing, National Investors

Share

tions for the first 10 months of

Despite the retarding effect of

what may turn out to be temporary requirements for larger down-

the

ciated mutual funds—Broad Street

in line with the average monthly

were

$91,528,000.

i

lltllXe ixOOCI
._

interest of the prior
shareholders,
Mr. Randolph
emphasized, in the
particular case of the three asso-

record year.

a

-p,

r

shareholders

The acquisitions

$862,817,000 for all of

Corporation

Additionally,

i^ODStrilCtlOll

of the professional management of the mutual

its 125 open-end member companies, the Asso¬

on

values.

selling
company's
acquire the benefit

industry's history,
according to the National Association of Investment Companies.

Established J 930
120

asset

ciation revealed that share purchases
by investors through Oct. 31,
amounted to $1,008,569,000, compared with

or:

National Securities
•

Fund Sales Strike New Record

_•

_

selling company with an opportunity to diversify the investment holdings of its shareholders
through the medium of a mutual
investment fund without loss of

Mutual fund s^les for the first 10 months of 1955
substantially
exceeded total sales for any entire
year in the

Reporting

Bullock Finds

the

By ROBERT R. RICH

,'i Stock Series
;

at full market value for shares of
the investment
company of equiv¬
alent asset value.
They furnish

57

structures

required

The

movement

of

popula-

priced

Continued

part of the year."

to

them;

on

page

58

company

CmmieM
INVESTMENT

@%j

\t&

Fundamental Investors, Inc.

iMi

A balanced mutual fund
over

i

♦'

300

bonds, preferred and

stocks selected to

of long-term growth of

a

STOCK

U. S. mutual fund designed to pro¬

diversified, managed investment
in stocks selected on the basis of pos¬
vide

a

sible

participation in Canada's growth.

Send for

a

A mutual fund
common

Diversified Growth Stock Fund, Inc.

w

mailing this advertisement to

stocks of well-established

companies selected for the possibility of

long-term growth of income and principal.

BULLOCK

Established 1894
ONE WALL

FUND

investing in diversified

ii

free booklet-prospectus by

CALVIN

possibility

principal.

GjHUK()We<A

Manhattan Bond Fund, Inc.
is

common

provide reasonable current

income with conservation and the

Diversified Investment Fund, Inc.

ur1)

COMPANY

investing in

STREET, NEW YORK 5

Name.

Address.




Prospectuses available
these

mutual

local

investment

funds

Managed and Distributed by NORTH AMERICAN SECURITIES
on

through

firms,

or:

HUGH W. LONG AND COMPANY

Russ

incorporated

Elizabeth

3,

New

Building

•

COMPANY

San Francisco 4, California

Prospectuses'available from Investment Dealers

or

the above

"Investment Company Managers since 1925"

Jersey
Wholesale Representatives:

Boston'Chicago'Dallas* Los Angeles* New York •Washington, D.C.

58 "

The Commercial and Financial Chronicle

(2242)

..

Thursday, November 24,1955

.

1
1

These will continue

for uranium.

Fund Examines

strong as we place
atomic weapons in

Uranium Future

Messrs.

of

arsenal,
Steers pre¬

dicted.
Uranium bears will hibernate if

they
the

make

study

of

industry and

its

factual

a

of

state

the

implies

markets,

Mutual

velopment

quarter ending
Board

the

the

of

stockholders

report

Atomic

to
De¬

the

for

Fund

on

Sept. 30, 1955.

Chairman

Merle Thorpe,

Jr.,
and President
Newton
I.
Steers, Jr., devote much of the
report to an analysis of the ura¬
situation.

nium

The fund officers

point out that
Canadian companies oper¬

major
ate

Government

nadian

fixed

a

Ca¬

guaranteeing

until April, 1962.
time, the United

price

the

At

with the

contracts

under

same

Apprehension

of achieving a controlled
Pointing out that
it took uranium reactors 13 years
sibility

develop to their present state,

the

"The
the

price of uranium is unique
which

extent to

tected from

says.

been

to

African

made

pro¬

market

adverse

tion,"-the report
have

it is

reac¬

Contracts

buy South
through 1967 in keep¬

ore

ing with the present price struc¬
ture—perhaps a straw in the wind
far

as

and Canadian

American

as

mines

concerned.

are

Taking the

of Algom Ura¬

case

Mines,
Ltd.,' as
typical
well-situated Canadian

nium

will

fusion

controlled

practicable, but
certain that it will re¬
quire a very long development
period for commercial realization
even
after feasibility is demon¬
be

ever

it

proved

appears

of view of
uranium companies as the
is invested in, the irrele¬
of fusion stems from the fact
the

"From

vance

point

all of the fund's rep¬
resentation in the uranium field

that nearly

is

the

report says:

Uranium

"Algom

in the Blind River area of Canada

the

tomorrow, and

is achieved

fusion

the day
following," the report states.
commercial

application
ended

fund

The

assets

net

total

with

Canadian

the

the

quarter

of

$44,048,-

total
stock

earnings after taxes
during the contract

Is Good,

the

4.

this
period

on

been /mined

'out, and
will own, in addition, plants ca¬
pable of processing 6,000 tons of
ore
per
day, such plants being
completely written off."
By 1962 major nuclear power
plants in many parts of the world
will supplement military demands

of

of

the

new

methods

changed

personal pros¬

perity and the change
ple's living habits.

in peo¬

that

observes

tion

"the

housing

like
the
monetary
authorities, have attempted to top
off a boom which was being ex¬
authorities,

cessively financed by credit. Once
the restraints appear about to ac¬

in

ment

a

purpose

share

income,

and

from

45

of

Labor

forecast

and

10%

a

they will

increase

of

—

public

construction

up
up

"Perspective" looks with

upon

tries'

investment

the

building

"It would

ber 28, 1955.

characteristics,
are

appear," "Perspective"

concludes, "that the industry
tinues

to

have

investment

if such investments

PUTNAM

to

raw

con¬

merit

restricted

and
had

there

here,

of

the last of the

the

feut

up.

But should it decide

bond, the market would
be upset, at least temporarily.
The theory is that a long-term
Treasury
issue
would
tend
to
cause
potential
buyers
in
the
corporate market to switch to the
government loan, figuring they
could pick up their needs in the
market at

later date.

a

efforts to

latest

in

boost

Co.'s

Gas
of

central

offering
next

bids

of

test

sible

of

$18

bonds,

Tuesday
the

due

as

its

of

situation.

new

A and
competition

size

keen.

be

rates

how¬

came,

at

ever,

rate

time

a

when the corpo¬
market, and like¬

issue

new

NOTICES

DIVIDEND

wise the secondary market was in

shape

good

effects.

its

withstand

to
it

True

left

couple

a

substantial-sized

of

which have

of

demonstrated

ability to obtain good profit

mar¬

gins in

com¬

the

dealer

not

been

of

the

new

ferings,

company

there

the

investment

the

tract

with

ment

Company.

annualto

on

meeting

authorize

tional

Fund

Texas

five

the

former

event

of

motfe

the

For

million

At any rate

concerned

not

by

It

The

not

price of the Texas Fund

Texas

Fund

port¬

directors of Canada General Fund

Limited, elected Maj-Gen.

A. Bruce Matthews

Vice-Presi¬

a

dent of the fund.

who

Matthews,

is

of the Excelsior Life

Presi¬

Ltd.

Stores,

other

and

continues

as

a

corpora¬

Canada General Fund,

of

Canadian
owned

predominantly

States
of

investment

investors,

more

of record at the close of business on Decem¬

ber 1, 1955. Transfer

company

by

with

net

United
assets

rate

bank

has

Secretary

boost

Co.

AnacondA

Securities

on

Dec.

the

The Board of Directors of

and

THE

than

share

more

payable
to

>

December

C.

EARLE MORAN

Secretary and Treasurer
25

Broadway, New York 4, N. Y.

price plus 3%, the
work progressively

Allegheny Ludlum Steel Corporatian

company

Pittsburgh,

.

next

weeks

investment

or

so

situation

share

declared

was

Stock

Common

of

on

the

holders

cf

cf

record

business

at
on

the
ap¬

likely to be keyed to the
Treasury's impending plans. For

the Treasury as usual
has
been - getting
ideas on the
market outlook from institutional

share on the $4,375 Cumulative Pre¬
ferred -Stock
of the- Corporation,
payable
per

December

15,

record

at

of

cember

now,

C.l.T.
EATON & HOWARD

BALANCED FUND

STOCK FUND

1,

1955, to Preferred stockholders
the close cf business on De¬

1955.
S.

A.

McCASKEY, JR.

Secretary

quarterly dividend of $0.60

FINANCIAL

including the New Science, Nuclear Chemistry.

INCORPORATED

24 Federal Street

BOSTON

Prospectuses from




■

BOSTON

333

your

Investment

Montgomery Street

SAN FRANCISCO

ESTABLISHED 1924

Dealer

or

ary

CORPORATION

the

above.

Common

-

-

Prospectus

on

F. Eberstadt

ness

DIVIDEND NO. 135

Co.

December

1955.

close. Checks will be mailed.
C.

Inc.,

John Kuhn,
Treasurer

Manager and Distributor of Chemical Fund, Inc.
65 Broadway,

12,

The transfer books will not

request

&

payable Janu¬

1, 1956, to stockholders

of record at the close of busi¬

Diversified Investments in the Chemical Field

HOWARD

the

on

Corporation,

The

Managed by

share in cash has been

declared

Stock of C. I. T. Financial

Objective of this Mutual Fund is possible
LongTerm Growth of Capital and Incomethrough

the
De¬

10,
1955.
The Board also declared a dividend of one
dollar nine and three-eighths cents ($1.09375)

per

EATON & HOWARD

the

Cor¬

poration, payable December
20, 1955, to Common stock¬

cember

pears

spell

Penna.

At a meeting of the Board of Directors of
Allegheny Ludlum Steel Corporation held
today, November 17,
1955, a dividend of
seventy-five cents (75c) per

close

debt.

the

'

2, 1955.

company's treasury and to liqui¬
date
the
foregoing
short-term
For

the

at

December

on

102%.

than

lower to the maturity date.-

entire

1955,

22,

stockholders of record

close of business

will be redeemable at

the offering
premium to
The

its capital stock of
value of $50 per share,

on

the par

bidding for the bonds,
date is set
(probably

nor

par

bonds

COMPANY

ANACONDA

has today declared a dividend
Two Dollars ($2.00)
per

of

invitation

an

190

November 23, 1955

6), will fix the interest rate
may set a price of not less

and

The

of

the issue.

NO.

of

,

into reg¬

gone

the

with

Commission

when

a.

than $63,000,000.

books will not be closed.

November 15, 1955

bonds, has cleared the last hurdle
with approval of the Public Serv¬

the largest
"

cents

1956 to holders

declared, payable January 1,

Exchange
Commission to cover
proposed sale of $70 million of
new
30-year, first and refunding

Insur-.

"director

five

seventy

CARL A. SUNDBERG

has
borrowed
about $70 million from banks un¬
ance
Company and a director ofder
a
revolving
fund
set
up
the T o r o n t o-Dominion
Bank,'
earlier and proceeds of this issue
Dome
Mines,
Ltd.,
Dominion will be used to reimburse the

tions,

dollar

of twenty five cents (25<*) per share on the
Common Stock of this Company have been

DIVIDEND

Y., which

Bankers

meeting following the an¬

one

($1.75) per share on the Preferred Stock and

latter.

Edison

Consolidated

was

will

shares

of

Dividends

cumstances.

addi¬

meeting of shareholders, the

dent

tells Gim-

Treasury is due to an¬

securities.

Personal Progress

Gen.

i'keferred dividend No. 190

this

to

New York 8, N. Y.

Church Street,

nancing $12 billion of outstanding

for bids

(1954)

30

shortly its plans for refi¬

nounce

Manage¬

folio.

nual

is

the problems of the

con¬

shares since money obtained from
the sale of shares will be re-in¬

a

never

what it has in mind.

istration

At

up

Federal Reserve tell the Treasury

N.

the

not

of¬

naturally,
while
not
likely
to
favorably at the prove embarrassing is, none-theless hardly welcomed in the cir¬
was a resolution,

additional

in

Macy's

as

pointed out that the issuance and

vested

least

at

sale

affect the

INCORPORATED

those

on

run

bels, apparently neither does the

aproved

Texas Fund shares.

of

ALCO PRODUCTS

has

yet,

as

Common Dividend No. 126

But,

Building, the

advisory

there

But

disposition,

point.

shareholders'

annual

hands.

any

loose and

cut

to

more

"hung-up" in underwriter

and

the

of

less

issues

new

A

&

up

pos¬

a

rated Double

.The issue is
could

San Diego
million

on

mortgage

new

for

Test

Be

v/ill be

eyes

because

rising flow of credit.

the

All

♦

petitive conditions."

EATON

on

long

Should the Treasury detail its
lifting the charge to
plans over the week-end or some
the highest in over 20 years, and
time Monday, it is pointed out,
coming as a complete surprise to
-underwriters
would
be
able to
the rank and file, put such ex¬
adjust their sights accordingly on
pectations back on the shelf.
the Coast utility's issue.
The Board's action

-

fairly wide

a

.diversification

materials and plant and com¬

panies

e/ SfioU&n

are

companies with

geographical

FUND

firm.

Texas National Bank

indus¬

adequate."

shareholders of record Novem¬

circles

seen

bank

meeting of Texas Fund, Monday,
Nov. 14, in the Fund offices in the

$2

construction

"assuming that mortgage funds

capital gains, both
payable December 23, 1955 to

espe¬

expressions from

the

glimmering

a

curb

newly-

would be no change
underlying policy which
has guided investment policy of
the Fund since its inception.
in

Commerce

and

an

favor

invest¬
cents

had

ice

1956—private

3%

share from

the

of

relaxed."

billion for total construction needs

cents

and

weeks,

hope that
the investment markets generally

Producing Company;
Swigart,: petroleum

Also voted

Referring to the stiffer current

requirements in the financing of
residential building, the publica¬

which

10

E.

Texas Fund stockholders

The greater

ments

QUARTERLY

been

or

stated

Citing estimates of the Depart¬

DISTRIBUTION

Gulf

Texas

since

banking

Company; Stanley C. Morian,
President, Dixie Chemical Com¬
pany; Lawrence S. Reed, President,
Theodore

pick

Could

quarters in Washington

high

G.

Coates, partner, Baker, Botts, An¬
and Shepherd; J. W. Link,

At

production;
5.

be

CONSECUTIVE

F.

several

cially

the

of

are:

is
to

financing, the corpo¬
may be expected to

market

market.

money

For

of Texas Fund

Management Company

Directors

structure to suit

of plant
needs

tne

complish their

73rd

the

excellent

a

members

as

of directors

named

urban to

The emergence of

type

At the end of the period,

have

had

circles

recourse

it has been applying in

pressure

The directors named Jack Coles

Says Bullock

tion and industry from

Algom will have, we estimate, at
least as much ore in the ground as
will

has

which

Serving

suburban and rural locations;

ending March 31, 1962 will amount
to $15.80 per share, as compared
with a current market price of
$16.25.

serve

growth since its formation in 1949.

57

Construction Future

con¬

that

believe

We

centrates.

aglittering recently expressed
hopes that the Federal Reserve
ease up a bit on the

investment

open-end

an

Vice-President

Government

.uranium

of

organization will

new

board

rates

Board would

investment adviser to the Texas

fund

in central
naturally

markup

sent

effective

Company,

latest

The

bank- rediscount

pany.

buying agent for the U. S.
Government) to produce $206,-

worth

have
of the

18.

The
as

name

company to Texas Fund Man¬

agement
Nov.

its

-

(as

000,000

change the

Brads-

and

consultant; also, William J. Sloan,
160 and net assets of $13.57 per
President, Texas Fund Manage¬
share.
Corresponding figures for ment
Company and Mary Lu Ep¬
the quarter ending on Sept. 30,
person, Secretary and Treasurer,
1954 were $6,862,236 and $11,55.
Texas
Fund Management Com¬

under the terms of a firm contract

with

new

to

in

Company

contracts which
Jr., Executive Vice-President,
making
American General Investment
unwarranted assumption that
by

protected

Ltd.,

has started construction of its mill

voted

companies

and

and

market

without

rate

a

would be unaffected, even

Continued jrom page

Mines,

two

in

long-term

Texas

and

principal underwriter,
Bradschamp and Company, have
grouped all the capital stock of
those

companies

Feeling

Fund's

champ

compa¬

that, if the Treasury operation is

drews

among

companies,

Associates

trust

completed

Texas Fund Research and Man¬

Fund,

strated.

such

in

is no assur¬

that there

that

ance

fund

date.

"It is to be em¬

report says,

phasized

Merges With
agement

insurance

as

commercial banking connections.

Texas Research

un¬

fusion reaction.

practical

a

with

warranted optimism over the pos¬

obligation to buy at the present
price structure all uranium ore
mined in this country before that

States Government has

future

the

over

of uranium is connected

to

nies,

our

and

Thorpe

family

a

people such

Texas Distributor

November 23, 1955.

New York 6, N. Y.

i

Volume

Number 5484

182'

.

.

The Commercial and Financial Chronicle

.

Schirmer, Atherton Adds

I

the

Boston

York and

New

DENVER, COLO.
Allan

is

The Board of Directors of

Stanley A.
Renyx, Field

DIXIE CUP COMPANY

& Co.

The

Stock

New England.

Board

DIVIDEND NOTICES

Convertible

Dividend

payable

cfflD)

Stcck,
(quarterly)—62'/2c

9

per

stock—Dividend

share—payable

stockholders

of

record
H.

Dated:

November

Wilmington, Del., November 21, 1955

the

on

this

clared

1955

Common

The

November

Series

Stock

ferred

and

Directors

of

ary

has

declared

to

NACE

Preferred

87V2<

25,

close

Stock

as

the

per
sharestockholders
of

to

DIVIDEND NO. 152
No.

92

20,
1955
9,
1955.

December

to

A

DIVIDEND
of
Seventy-five
share on the Common Stock,
ol
tnis Company has been declared payable at
the Treasurer's Office, No. 165 Broadway, New
York
6,
N.
Y.,
on
December
19,
1955,
to
stockholders of rpcord at the close of business
QUARTERLY

Cents

1955.

($.75)

on

of

record

November

P. S. du

share

a

the

at

29,

on

N.

GOODWIN,

161 East 424 Street, New

PONT, 3rd, Secretary

distribution of Four

($4.00)

a

DIVIDEND

declared

30, 1955.

per

B. JESSUP, Secrefary

dividend of 32 cents

a

December 1,
--T"

shf.re

:

the

on

t>f

the
I95'j

25,

ness

Httckholders

105,-.

1955

of

record

November

Milwaukee,

December 9, 1955.

The

Wis.

:■

Board

meeting

Secretary and Treasurer
November 17, 1955.

Cash dividends paidineveryyearsincel899

of

Directors

at

a

on

declared

a

holders

of

record

i»W»WU COTMWnDH

November

25, 1955.

TENNESSEE

Paul E. Shroads

i' •;

CORPORATION

Senior Vice President & Treasurer

DIAMOND

November 15, 1955

Southern

on

Common Stock
Dividend Number 16

DIVIDEND

a

share

stock

hits

Burroughs

of

payable

January

holders of record
ness

declared

been

share¬

Sheldon F. Hall,
.

.

.

Vice-President

Noveniber 21, 1955

on

Common Stock

Company have

and Secretary

3% stock

dividend

on
a

a dividend of
share for the

and predecessor companies

November 30, 1955. An extra divi¬
dend of one dollar ($1.00) per

quarter ending Dec. 15,1955,

©

share will be

payable Dec. 15, 1955, to
4.40% Cumulative

paid

1956,

Preferred Stock of record

December 15, 1955.

quarterly

a

dividend

to

stockholders

regular
of 374^

of

President

Stock of record Nov. 28,
s.

Dividend No.

carmichael,

(22
PREFERRED

STOCK,

4.32% SERIES
Dividend No. 35

4y2Vo PREFERRED STOCK, SERIES A
the

regular quarterly dividend for
quarter of ?1.12>J per
payable January 1, 1956, to

current

share,

the close of busi¬
December 2, 1955.

holders of record at
ness

1% SECOND PREFERRED
The

STOCK

regular quarterly dividend for

the current quarter

of $1.75

per

share,

payable January 1, 1956, to holders
of record at the close of business

at

COMMON STOCK

payable Decem¬
ber 22,1955, to holders o'f record at the
business December 2, 195j.
R.O.GILBERT

Secretary

the close of busi'

November 30,1955.

31,

are

pay¬

1955,

dividend

was

to

a

3% stock

declared pay

able

January 11, 1956, to
stockholders of record at the

stockholders of record Decem¬

Angeles, December

DIVIDEND

addition,

close of business November

30,1955.

31.

The above cash dividends
hale,

Treasurer

will

^JRAIIMOBILE^

not

be

paid

on

issued pursuant to
dividend.

Broadway

RICHFIELD

the shares
the stock

John G. Greenburgh
Treasurer.

New York 6,

N. Y.

dividend notice
The Board of

Directors,

at a meeting held November
regular quarterly dividend of
seventy-five cents per share for the fourth quarter of the
calendar year 1955 and a
special dividend of fifty cents
per share on stock of this Corporation, both payable

15, 1955, declared

December

a

15, 1955,

to

stockholders of record

at

TENNESSEE
TRANSMISSION

the

Cleve B. Bonner, Secretary

COMPANY
HOUSTON.

AMERICA'S

LEADING

Oil

DIVIDEND

Corporation

TRANSPORTER

The

RICHFIELD
Executive Offices: 555 South Flower
Street, los Angeles 17, California

'•||

IGAS

close of business November 25, 1955.

12J4 cents per share

November 22,

record

61

December 2, 1955.

close of

to

STOCK

December

one'

payable January 11,
stockholders of

1956,

In

CELANESE
THE
Boardthe
of Directors
this day
declared
followinghas
dividends:

OR NATURAL GAS

regular quarterly dividend of 35c per
on the Common

share has been declared

Stock,
NO. 33

\||j

TEXAS

payable January 3,

holders of record

on

1956 to stock¬

December 9, 1955.
J. E. IVINS, Secretary

1955.




of

half
share"was

and

cents per

ness

27 cents per share.

P. c.

DIAMOND ALKALI COMPANY

CORPORATION OF AMERICA
180 Madiion Avenue, New York 16, N.Y.

DIVIDEND

dividend

twenty' two

Secretary

<f

CASH

extra

declared

able

of

stockholders

the close of bush

186

60 cents per share.

CUMULATIVE

per

November 30,1955.

An

November 18, 1955

The

to
at

PREFERRED STOCK

from the. Company's office in

Cleveland, Ohio, Nov. IS, 1955

plastics

ORIGINAL

Los

donald

1955,
record
ness

ber 5. Checks will be mailed

1955.
fibers

of the

following quarterly dividends:

The above dividends

CHAMP CARRY

share, payable Dec.
1955, to holders of Com¬

mon

authorized the payment

record

cents per

5,

clared

January 6,

on

holders of

Nov. 28, 1955, and

of

"JA regular quarterly dividend of
seventy-five cents (75(0 per share
will he paid 011 December 14,
1955, lo stockholders of record

payable

Nov. 28, 1955;
per

Year

Dividends

paid by Pullman Incorporated

Dec. 19, 1955, to holders of
Common Stock of record

$1.10

Cash

fortyfive
share was dc
payable December 21,

(45 j£) cents
of Directors has

DIVIDEND

dividend of

A

EXTRA

The Directors of Diamond
Alkali

Consecutive

Quarterly

Nov. 17, 1955, declared

December 16, 1955..

Detroit* Mich.

Regular Quarterly
Dividend

Corporation,

the close of busi¬

at

89th

($.25)
the

upon

1956, to

20,

The Board

4.40%

on

Cumulative Preferred Stock

A dividend of twenty-five cents

CASH

dividends

CASH

224th CONSECUTIVE

California
Company

Edison

Pullman
3% Dividend

Secretary

YALE & TOWNE MFG. CO.

November 15, 1955,
quarterly dividend of
one dollar per share on the
capital
stock, which will be payable
December 10,
1955, to stock¬

B. M. Betsch,

if; 1955

November

Executive Vice-President and

Dividend

O. REGNER, Secretary-Treasurer,

I.;

J

104th Consecutive

•

.

<•

THE

of

year-end
cents

a

9, 1955.

F. DUNNING

of

share

January 3,1956, to stockholders

Directors

of

dr idend

rid

Dec.

D.W.JACK

Stock, payable

the Common

'wenty

dr«Iar

stockholders of record
at the close of business

-

.

on

Jan. 3, 1956, to

Secretary

of record at the close of busi¬

has declared a
sixty cents (60c) per
dividend of
one
($1.20) per share
j,.:al stock (without par value)
Corporation, payable December 15,

L.turf)

Thn

quarterly

payable

of business

1955.

was

of past earnings,
-

November 18,

-

;

of

3, 1956 to stockholders

ary

share

by the Board

of Directors out

on

record at,the close

on

declared

the Common Stock
Company, payable Janu¬

share

of the

dividend

seventy-five
cents [75V]

per

The Board of Directors has

DIVIDEND

NOTICE

Directors todcy

of

Board

The

November

St., New York 6, N. Y.

per

dividend No. 271

of

Copper Corpo¬
payable on December 16,
to stockholders of record at

955,

JSi PER SHARE
On Nov. 22, 1955,

Common Stock Dividend

cash

1955.

COMPANY

Dollars

CORPORATION

a

Vice-President & Secretary
November 21, 1955.

UTILITIES

COMPANY

declared

December

John Corcoran,

share has been declared

PAUL

sixty-five cents (65^)

on

DECLARES 271st DIVIDEND

York, N.Y.

A cash

1

ELECTRIC BOND AND SHARE

1955, to shareholders of

\j

November 18, 1955

of

cttose

13,

2, 1955. Checks will be mailed.

Treasurer.

CORPORATION

1955,

1955.

December

record at the close of business

YALE &TOWNE

the close of business on

fHiaOStSmAnONh

17,

KENNECOTT COPPER

ration,

r*

J.

November

Y.,

the

dividend

14,

quar¬

1955.
E.

York,

today by Kennecott

Two Rector

28,

of

1955

BRICGS Cr STRATTON

per

a

terly dividend of 75 cents per share on the
Common Stock of the
Company, payable
on

(quarterly)—

December

WECKERLEY, Secretary

21,

SOUTHERN PACIFIC COMPANY

New

Janu¬

on

year-end

December

payable

stockholders

business

both payable

business

1956; also $3.00

10,

1955,

Pre¬

stockholders

to
of

the

on

Philadelphia, Pa.
18,

COAL COMPANY
meeting held today, declared

a

A—

this

Treasurer

November

CONSOLIDATION

Stock—$4.50

share

a

1956,

the

at

Common

for

the

Stock—$3.50 Series,

record

1955.

30,

of

on

January

mailed.

CHARLES L.

Board

share

a

per

shareholders

to

Checks will be

R.

Series

day regular quarterly dividends of $ 1.12 V2

of

Corporation was de¬
payable December 15,

record

PITTSBURGH

Dixie

November

BAYUK CIGARS INC.

of

10,
1956
9, 1955.

December

record

45c

No.

U6.U.S.PAT Of-

share

of

at

Preferred

January

Common

)

NOTICES

quarterly dividend
twenty-five cents (25£)

Directors

dends:

5%

E.1.0U PONTDE NEMGURS&COMPANY

A

of

Cup
Company,
makers
of
napcr
dnnking cups and food containers,
has
declared
the
following
divi¬

Exchanges. He was formerly with
Investors Planning Corporation of

DIVIDEND

DIVIDEND NOTICES

—

with

now

members of

Street,

DIVIDEND NOTICES

(Special to The Financial Chronicle)

BOSTON, MASS. — Edward B.
Murphy has been added to the
staff of Schirmer, Atherton & Co.,
Congress

DIVIDEND NOTICES

With Renyx Field Co.

(Special to The Financial Chronicle)

50

59

(2243)

.-if*

The Commercial and Financial Chronicle

(2244)

CO

Thursday, November 24,1955

...

to the

rent

BUSINESS BUZZ

about

given
the

was

economy

much

as

space

as

opinions of the long-haired aca¬
demicians who still see the poor

Washington...
A

ffl f

Capital

•

jlJL I l/li/

M, C/ Cv

~ms%

tax

HOGWASH, JR.

just

rich

Financial Consultant

jtJ

Behind-the-Scene Interpretation!
from the Nation'#

ground down and the 91% sur¬
OTTO P

dodge to let the filthy

a

keep

of

their

the

daily

much

too

money.

It

with

that

natural

is

newsboys,

Guilded

heavily

so

their newspaper

left-wing

labor ideas, should pick out

WASHINGTON,
moving
into
the
bracket

the

C.
2Vz%

of

cost

In
rate

D.

bank

bor¬

the moment there is a sort

At

—

"feeling coming through the

of

rowing at the Federal Reserve,
the
Reserve
System has said
in effect that for the time being

number of reasons for so think¬

the

is

economy

ahead

at

a

still

roaring

which

pace

needs

has—said

It

ticularly

no

the

to

as

Immediate

more,

par¬

future.

The

development which
to
have triggered

believed

is

the

higher discount rate is the
appearance of a Christmas de¬
mand

which

funds

for

have

the

exceeded

estimate

ably

of

what

allowance for the
the

cf

end the
demand
which usually

credit

bank

demand

fund

normally brings to
long seasonal rise
icr

reason¬

was

economy.

Christmas

;

must

System's

demand with
steady growth

seasonal

a

an

in

£ets under way in mid-summer.
The

Reserve

has

of

probably

firm

no

for

pects

that

it

yet

as

appraisal of pros¬

the

expansion

When

it does

probable

will adjust

economy's rate
in the new year.
get a reading on
rate of growth,
its flexible credit

policy accordingly.
with

If,
several
it

rate

new

snd

bust,

1hat

the

mid

is
fever¬

a

expected

be

may

inclination

boom

as

the

of

Senate
the
mainspring of this move, which
some saw as perhaps incidental
to
the
promotion of his own
Democratic

and

fall

Re¬

on

infla¬

be

to

appears |

tied

all

be

will

Where

with
reasonable restraint, it will have

signs

not

are

ingly unified behind the Demo¬
cratic party. If any one man
cannot

"buy

piece"

a

of

prospect for
organization

rosy

labor

of

plenty
great

have to take

will

It

boxes.

soap

dictate

to

a

nomination

the

it

play

little

a

balance

of

to

risk of

the

also

mone¬

will

Who

rate

observers

still having a

management, alwavs in¬
herent, that they might just be

guessing wrongly and thus in¬
advertently help precipitate a

who is getting away

tary

downward

which

trend

glaringly

might

noticeable

come

November.

like

to

Another intangible is the

Radio

people

about

five

sets

There

sible

is

in

like

a

one

the

thing

new

Something

picture.

year

in

ago,

pos¬

a

colloquy

between Senator Ralph Flanders

*fL,

Vt.)

himself

and

Economic

Joint

before

a

Federal

the

with

that

policy

in

with

made

be

placed

the

more

relative

te-week

has
upon

the

possible

rate

week-

adjustments.

Hence, if the
some

implications.

of

new year

abatement

of

brings

inflationary

if the same is
temporary, one might look for
quicker
adjustments
in
dis¬
pressures,

even

count rates to meet shorter

in

Kefauver

be disliked b,y the bosses,
as doing a good

may

but he is rated

TV

show, is handsome, and is
especially pleasing to the ladies.

There

are

cos

who

certain number of

a

the

basic

Republican politiacutely aware of

are

paradox

"buying
V.-P.

they

are

cn

way

and

out

decisions.

any party invariably hate to
dispense with the importance of

government.
was

nom¬

front

their

staff

was

messing

around

the

try-

tune.

to the

a

"liberal" candidate

liking of the White House

staff "politbureau."
forlorn

and

Eisenhower,
pers.

to

pro¬
more

One by one

Republican

decide

Most
no

the

daily

in

stories

Economic Committee's compen¬
dium
of
opinions about what
be done

"liberal"

on

taxes

side.

by those who studied it
balanced.

That

is

was

The

rated

was

to

fairly

as

say,

opinions of those who

see

"progressive" taxes

a

as

on

com¬

in

Prospects

hands

Change

point
out
that
nothing so certain as
change
in
the
prospects
for
Presidential
nominees,
this
being more than eight months
away from the national political
is

conventions.




his

sales

There

are

Republicans

handicaps
utter

horror

few

who,

of

candidacy,

deter-

of

Marcy

—

The

6, D. C. (cloth) $5.00.
an

Indis¬

W.r

Its

and

—

Critics—Gordon

R.

League for Industrial

Democracy,

19th St.,
(paper) 15c.

East

112

New York 3, N. Y.

fRoecial to The Financial Chronicle)

is

CHICAGO, 111.—Richard Weiler
now with R. S. Dickson & Co.,

Incorporated, 135 South La Salle
Street. Mr. Weiler was previously
with First National Bank
cago.

of Chi¬

I

TRADING

MARKETS

Fashion Park
Indian Head Mills

Mr.

\

W. L. Maxson Co.

Morgan Engineering
National

Carl Marks

&

Co. Inc.

Riverside

Co.

Cement

hard-headed

despite

FOREIGN

the

Eisenhower's

contemplate
the

M.

run

pitch.
a

the

in

Changes

Carl

the
high

if the opponent doesn't di¬

even

(cloth)

Y.

R. S. Dickson Adds

pendium nevertheless

get the President, in case he

for

and

Clapp

the pre¬
the Joint

press

Milton
crop¬

TV A

this, and

Study Appraised

Harold

turned

beside

one

brother

have

Fifth Avenue,.

N.

tute,
1757
K
Street,
N.
Washington, D. C. (paper).

against

likely has not yet made
his mind.)

the

a

Metal—Mildred Gwirn
Andrews—The Tungsten Insti¬

observers

hopefuls,

The current drive is to try

ton

he quite

should

20,

Tungsten: The Story of

prediction Mr.

a

will

satisfied that

In

in

Planning

Brookings Institution, Washing¬

peaceful

a

Mr. Eisenhower knows

Tax

York

Proposals

gigantic

a

the

of

(This is NOT

up

Estate

pensable

ponderant

(2) It buys time to try to
mote

like

bring about

running again.
are

Associates, Inc.r

Street, New Yorjc

United Nations—Francis O. Wil¬

looks
to

for coming
Keyserling—

$3.95.

mantle.

call

to

New

It buys time to try, even

it

57th

and Schuster, 630

cox

(3)

H.

Changing World—Revised Edi¬
tion—Rene A. Wormser—Simon

work.

having
again after
his illness, and yet are seriously
advocating the same. The chief
inherent handicap is that ANY
candidate's health is usually re¬
sponsible for possibly a strate¬
gic percentage of loss of votes,
handicaps

Mr. Eisenhower

Future—Analysis of

prospects

Montor

East

Personal

Mr.

to

next

man

Eisenhower, and the longer he
stays in front the harder it is on
the
would be competitors for
the GOP nomination to get in

inated in 1952, tlie White House

| ing with all its might

aspect of
it helps

"liberals"

the

St.,

22, N. Y.

For Nixon is the offi¬

know it.

cial

is that

and

Eisenhower

President

posi¬

front

this

of

time"

Nixon

transference

1956

their

economic

32

ambitions for

Stassen
hard-headed

A

task

Even after Stevenson

.

Look Into the

just

not

and

tions.

minute the President renounces

their

Keep Ike Has Other Purposes.

retaining

if

j their services to

premium on
give a good

Estes

unemployed. They may
the payroll and
go

on

of
:

unthinking elements

the country.

"king's retain¬
for all practical

The retainers of any

cam-'

of

"lib¬

great

rectly mention his rival's health

Presidential

there

the

charm

a pos¬

the

become

make

theatrical performance and

run

trends.

Old

a

can

1952

with

emphasis

over

be

frequency,

Reserve

stability

structure

Reserve

attended

"cataclysmic"

Heretofore,

agreed

should

greater

should

and

less

Senator

the

changes

Reserve

who

gent

Committee

forum, Chairman Bill Martin of

the

This puts

paign.
the

in

there is

principles,

through the motions of serving
until
January,
1957,
but the

TV.

that there are
times as many TV

as

now

as

that
run
in

practically
speaking will lose the power to

say

States,

Henry

the

the man
from them.

just "me too"

United

of

stay

influence don't

the

parently
concerted
effort
to
keep alive the possibility that
Mr. Eisenhower just might run.

purposes

as

the

save

can

W., Washington 5, D. C. (pa¬
per) $1.00.

decade—Leon

ers",

considerable drag.

with

men

Harry

who

Associa¬

Fourteenth

1012

N.

incidentally, to offer them hope

abdicates,"

Truman

Harry

man

Enterprise

tion, Inc.,

eral"

and

Mr. Eisenhower
1956, the entire
Eisenhower entourage holds its
tenure.
The minute the "king

right man

only

world's peace, the prosperity

practi¬

very

some

(1) So long

right time?

the

quo.

sibility
might

the

make

decisive pitch for the

at

will

convince

to try to

run,

Education—Boon

to

politically important
objectives are served by the ap¬

cal

to

go

or

doesn't

Chief Justice Warren that he is

However,

pre-convention
of power the

able

be

to

better

the

on

Buys Time

labor

to

default,

front man by

game

will

words

other

allow

chance

a

the

possibly
even
Vice-Presidential

.the

name

Aid

Bane?—Roger A. Freeman—

American

unhappily, take
status

important parts of a Democratic

but

Federal
or

only

not

-

interpretation that
dividends must be considered ephemeral
—in other words, IT STINKS!"

present

militant

which has;;
will own a
delegates,
and

Such

next

all

money,

many

wants

a

Bookshelf

rate of return lends credence to the

candidate, but must per¬
force tag along. This is not a

litical

minded

"be

"Sagacious appraisal of Consolidated Corn Plaster
graphically indicates a negative growth factor in the
subsidiaries—a perspicacious perusal of the current

organized

front,

in

out

gets
labor

their

criti¬

•

Man's

overwhelm¬

is

labor

that

but

possibly helped to mess up, Mr.
Stevenson's 1952 campaign, po¬

vocal

most

the

views.]

Business

that the southerners
joined together this year

Congressional
leftists
who will be back shouting from

of

own

are

inflationary-

the

take

cisms

the "Chronicle's"

labor

organized

fi¬
nally support? For all tnat Mr.
Truman messed around in, and

to

re¬

in the

up

collaborating

In

*

[This column is intended to

hefty weight? All the

throw its

In

Administra¬

Eisenhower

system

going full

prettiest pink ribbon, there are
other intangibles, to wit:

expansion.

tion, which is in the sort of
figurative position of being the
married
partner in monetary
policy,
will
face
a
possibly
difficult problem in 1956 if the

tax

pretation from the nation's Capital
and may or may not coincide with

stumble

everything

when

just

to

seems

of

economy

year.
-

the fact that the

candidates can

of

kind

best

flect the "behind the scene" inter¬

from

Aside

best

nominee.

tionary.

was

candidacy.

the rate

outlook

the

leader,

keep the

many

against Stevenson.

Johnson,

Lyndon

program,

added breaks

The

crowd

their

the

Although many people spent
hours writing these anal¬
yses, nothing tangible will come
of them, for the Joint Ejonomie
Committee is not going to make
tax policy in 1956 or any other

of some of
to
organize

move

southerners

the

is
to

tilt.

teeth

the

in

kicked

of

Southern

the

that

-

incipient

throughout this year
in 1953, will be to put

as

•Some

of

it

year,

economy

threaten

to

as

of

passing
the

of

that the

pushing ahead at such

serve,

is

collected
opinions of all
shades, preparatory to its hear¬
ings early in December on what

a

are

One

moment.

the

at

tee

this

the

weeks

appears

ish

ing,
these

the

There

nomination.

cratic

Governors

restraint.

The Joint Economic Commit¬

pores" that Adlai Stevenson is
sure
shot to get the Demo¬

a

the

"liberal" views to disseminate.

opening

'

with
up

TEL:

SECURITIES

BROAD STREET

50

HANOVER 2-0050

of

•

SPECIALISTS

NEW YORK 4, N.

Y.

TELETYPE NY 1-971

LEANER & GO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

the fight between the conserva¬

tive

and

"liberal"

Telephone

wings of the

party, and thus would rather, if

f

%
.

\1

HUbbard 2-1990
,

-

Teletype
BS 69