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UNJVERSi I 1
MICHIGAN
°F
ESTABLISHED 1S39
Dtt;
-
2 1957
busine^dministration
}
Res. U. 8. Pat. Office
Volume 186
Number 5694
EDITORIAL
.
New York 7, N. Y.,
The Bureau of Labor Statistics
evident satisfaction the end
the
of
Via Trade and Aid
with
announces
(or
it hopes) of
so
Former Board Chairman, Dillon, Read
press-,
If the
Washington statisticians
and
a concern
their surmise that the
this time
on
course
will be, with temporary
perhaps, downward,
declares, lies principally in the eco¬
be sure that we wilt not stay
the course of Soviet world domination, no matter what
our military
power may be.* Mr; Dillon suggests we:
(1) extend Reciprocal Trade Act for five years; (2)
nomic field and "we may
exceptions
a
sigh of relief, while
others, doubtless, will have to look around for
place of what
ing cost of living.
investment banker
at least not upward, some
or
vote seekers will breathe
issue to take the
the free world's economic strength
challenge in the field of inter¬
national economic relations. This challenge, the former
figure from
increase size of
an
a
-
efforts, and activities of Federal trade agencies.
Most economists, too, doubt¬
History has repeatedly
less, to say nothing of the rank and file who had
prices continued to mount, welcome
an
I
is unmistakably clear to them, they
somehow discover the unity, the re¬
end to
evidence of inflation.
determination
the
and
sources
of
,
to
the
After
rise
some
which
years
121.1,
of
this
If the forecasts from
use
has
the
worries of 4he
come
to
Spring of last
prove
General conditions also suggest
movement
of
By
Washington that the longcorrect,
prices
will
longer. Doubtless facts such
of
these
"•'?
*
an."
on
page
securities
dealers
are
a
views
now
worn-
on
page
National
;
merely going to try to
the
words
subject
my
our
—
crannies.
have
I
j
chosen to
continuing de¬
instead of
—
currency,
will
indicate
that
my
tilted toward resisting; the
are
all per¬
inflationary tendencies
we
ceive
C. Douglas Dillon
rather than
in
economy,
our
♦
relaxing and enjoying the ride. We
Allan sproui
all know that over extended time periods most currencies
have declined in
purchasing
I
28
power;
have suffered deval-
Continued
on page
by Mr. Sproul before the Governors of
ciation of Stock Exchange Firms, San, Francisco, Calif.
•An
Foreign
Underwriters, dealers and investors
—
complete picture of issues
am
basement of
by Mr. Dillon before the 44th
Trade Convention, New York City, Nov. 18, 1957.
afforded
I
few cracks and
inflation
address
SECURITIES NOW IN REGISTRATION
a
And
label
Continued
24
"common
I aih not going to try to cover
the field.
were among
Continued
economists, columnists,,, radip
forums,
panels of''
fill in
acting together, succeed in building strong and healthy
economies which answer to the aspirations of their
•An
an
"common man" and
w;'"'
1
relations. For unless the free nations,
much
continue
•
in the field of international economic
that the upward
not
as
one
vanish.
will
Administration
''
as
greater or lesser degree, as well as the
question is whether we
will respond, adequately and in time,
to the overall challenge to our so¬
ciety which is implicit in the prog¬
ress
of Communist technology and
power
now
being so dramatically
advertised to an apprehensive world.
Much of that challenge is outside
the realm of military power. It lies
higher than early in 1956.
end
an
year.
-
doubt, therefore, that our
satellite program will suc¬
The larger
had reached
the figure
year,
51/2%
or some
ceed.
of relative stability, this index
started to cliftib in the
October
missile
disconcerting.
found
many
the
currency
television
and
I do not
of
our
perts,
solve it.
It-was the persistence rather than the speed
;
that
realize
subject of continuing debasement
economic way of life has been
combed over pretty thoroughly in
j
recent months and years 4>y
jCqn% : 1
gressional committees; financial: ex-';'-.
demonstrated that when the
which
American people are faced with a serious problem
begun to wonder what would become of them if
this
Development Loan Fund; (3) become
member of OTC, and (4) encourage private investment
the mount¬
was
j
Sproul advises monetary authorities not tin embrace
policy of continuous ^homeopathic" doses of inflation to
cover up defects of other parts of our economic program j
or to be used in the unproved assumption that creeping
inflation maintains maximum production4 and employ*
ment.
Aware of the general biased attitude favoring
inflation, and the coming months of economic uncer¬
tainty, the former N. Y. Central banker states "this is no
reason" to relax efforts to protect the dollar needs. Sees
present slowdown as propitious time to reverse our trend
toward economic rigidity, und repeats previous call for
objective financial study.
in order to forestall Soviet
correct in
prove
of this
j
Mr.
is needed to increase
to many a politician.
.
Former President, Federal Reserve Bank of N. Y.
The State Department's economics policy maker declares
enlarged, long-term strengthened economic-policy action
topic much discussed in the
By ALLAN SPROUL*
Director, Kaiser AlumimLm aiid Chemical Corp.
& Co.
"
The persistent rise in this index has for a good
public
^
Director, American Trust Company, San Francisco, Calif.
Deputy Under Secretary of State for Economic Affairs
price index.
consumers
Currency Debasement
By HONORABLE C. DOUGLAS DILLON *
long rise in what used to be called the cost
living—now termed
while past been a
Copy
a
Vv'
,
We See It
As
Price 50 Cents
Thursday, November 28, 1957
address
the
30
Asso¬
in corporate
registered with the SEC and poten¬
Section, starting on page 34.
tial undertakings in our "Securities in Registration"
State, Municipal
in
and
U. S» Government,
Stale and
Municipal
STATE
Public
MUNICIPAL
AND
Securities
telephone:
THE
CHEMICAL
^30
BROADEN.Y.
IS IROAD STREET, NEW
CABLE:
120
YORK 5, N. Y.
•
014-1400
Bond
Dept. Teletype: NY 1-708
T. L.Watson &Co.
ESTABLISHED 1832
Active
Markets
Dealers,
Banks
Commission Orders
Canadian
Stock
CANADIAN
Exchange
25 BROAD STREET
NEW YORK 4,
'
for
CANADIAN
BONDS & STOCKS
Executed On All
DEPARTMENT
N. Yd
DIRECT
WIRES TO
MONTREAL, AND TORONTO
California
Municipals
'
BRIDGEPORT
•
PERTH AMBOY
Department
DoMcuotx Securities
6RP0RAT1071
Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE
bank
coast
Exchanges
Teletype NY 1-2270
COMPANY
from coast to
Chase Manhattan
Municipal Bond
American
^mi/uoedt
offices
Brokers
CANADIAN
New York Stock Exchange
Stock Exchange
BROADWAY, NEW YORK 5
Maintained
and
SECURITIES
Members
FIRST
34
TELETVRE NV 1*2262
COBUHNHAM
Net
insurance stocks
Members New York
STOCK CXCMANGCS
To
bank: and
Harris. Upham & C-
OF NEW YORK
Burnham and Company
NEW YORK AND AMERICAN
**
BOND DEPARTMENT
THE
THE FIRST NATIONAL CITY BANK
MEMBERS
AVAILABLE
REQUEST
LETTER
BANK
bond department
ARE NOW
ON
MONTHLY
<
"market review"
view
burnham
CORN EXCHANGE
Agencyj
Bonds and Notes
COPTES OF OUR
BONDS
HAnover 2-3700
Housing
115 BROADWAY
CHICAGO
\ s .(•'<
40
i-\~! ION
ExchangePlace, New York 5, N. Y
1 NORTH LA SALLE ST.
NEW YORK
IBank of America
300 MONTGOMERY STREET
Teletype NY 1-702-3
u
WHitehall 4-A161
SAN FRANCISCO 20. CALIFORNIA
The Commercial and Financial ChronicI:.
2
(2322)
<■
For Banks,
The Security I
Brokers, Dealers only
Like Best
Try "HANSEATIC"
participate and give their
need seasoned
When you
and
reasons
for favoring
Over-the-
they to be regarded,
are
as an
/
BEN
are not intended to be, nor
offer to sell the securities discussed.),
Counter securities, our
Louisiana Securities
Gaynes,
York
New
The
City
Members New York Stock Exchange;
plete facilities are at your
Chicago Board of Trade and Associate
Members of American Stock Exchange
disposal.
Chemicals
Pennsalt
Corporation
The
107-year old Pennsalt
Chemicals Corporation, emerging
New York Hanseatic
from
period of transition, is now
graced with a streamlined internal
Member
Associate
hanced
Exchange
Stock
American
Teletype NY 1 -40
BOSTON
CHICAGO
•
PHILADELPHIA
SAN FRANCISCO
•
only
Wires to Principal Cities
Private
The
year
should
8
not
see
an
to 10%
but
in¬
also
of the
^en Gaynes, Jr.
in
American
Exchange
Stock
Exchange
TEL. REctor
than
approximate
off'similar costs
20%
thus
incurred,
being
eliminating to a great extent one
of the major drags on margins.
2-7816
administrative costs.
step that
of
Trading Interest In
management has
which do
taken
the company
or
facilities
offer a high return
not
One
investment.
on
American Furniture
recent
ex¬
ample of this policy was the dis¬
posal of
Industries
municipal water system
a
limited
Life Insurance Co. of Va.
;
i
•
by Pennsylvania law to a
return of 61/2%' on . invested capi¬
tal.
'
.
revitalized
earning
power
first should begin to exhibit itself
in the March quarter.
Common
STRADER and COMPANY, Inc.
Lynchburg, Va.
TWX LY 77
earnings in
1958
should
range somewhere between $3.50
and $3.75. The important feature
this
of
is
increase
t
that
it
Opportunities Unlimited
Monthly
Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.
Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
is
not
orders
for
an
offer
any
or
The annual rate affords
3.6%
solicitation
for
particular securities
have
past
current
on
67% of net earn¬
ings, and indications are that this
policy will not vary greatly in
imminent
future.
a
considerable
pansion
funds.
portion of its ex¬
through
the
internally generated
of
Another
this
source
purpose
3.45%
in
of
Deben¬
Fund
and
1956
repre¬
senting some 83% present
long-term debt. Outstanding
mon
stock
in
the
totals
total
com¬
1,278,568 shares.
of the pioneers
one
field
of fluorochemistry.
imparts stabilitv to such
diverse products as refrigerants,
pharmaceuticals, and aerosol propellants.
The companv's trade¬
name.
IcOTRON, is steadily as¬
Fluorine
SUGAR
Raw
—
Refined
—
Liquid
E x ports—Im ports—Futures
suming
more
importance in t^se
DIgby 4-2727
Pasties offer
booming industries.
fluonne chemicals
tential
power.
as
does the
In
incendiarv
fluorine acts
Bought—Sold—Quoted
.
Engineering
Corp.
—
Steiner, Rouse & Co
Arthur Lipper III,
Security Analyst, New York City. (Page 2)
.
Members New
of
the
a
limitless
area
mis«ile
of nuclear
field
an
based
on
trigger and adds
compound
as a
po¬
almost
of
15
year-end
1956
selling at
estimated .1957
times estimated
and
15
.
earnings, the
HAnover 2-0700
Melchior
>
tion
evaluation
for
me
Engineering Corpora¬
originally presented
was
Pennsalt
over
one
Mobile,Ala.
year
Direct wires to
Melchior
Engineering is
year.
mechanisms
pat¬
a
c k
.
-',/ V
/•;."; Tokyo; Japan
Brokers
If
accepts
one
"youth
The
late"
then
certain
established
be
should
criteria
what
to
as
that
specu¬
com¬
The
superior
altimeter
which
recent
such
accuracy
is
Burns Bros. & Denton
inc.
37 Wall
;
/.v/
:;.yu ; /.'•Underwriters—Distributors*
the
follows:
as
p
than
this
r.oduct
or
need.
acute
an
■
lines
of the
This would
taxes.
100,000 shares
outstanding, but
either
feet
or
there
new
drastically
so
superior
to
is
Arthur
Lipper, III
al¬
what
ready
diate
the market that imme¬
on
competition
consideration.
rather
granted
lend
prime
a
should
be
pending.
than
should
Products
is not
Patents
themselves
diverse
to
applications and not
attractive solely to one indus¬
be
try or group of buyers.
.
with
shares
a
profit
smaller
in
a
least
at
relationship
net
and
no
The company should be in
a
positon so as to be able
maintain
to
of
stock.
common
such
number
substantial holders of the
also be
a
and
not,
concerns
do,
constant
sales
between
as
sult
.
caught
get
be
absent
or
very
carefully
investigated.
Market price of the
(5)
has
to
be
reasonable
both
the
light of future earnings and his¬
(6) Management must be will¬
ing and able to discuss the nega¬
well
factors
as
the
managerial
constructive
in
their
positive
situation
ones.
realistic.
as
.s
:
"
'
<
-■
:
Specialists in
try
4
'
NORTH
and SOUTH
CAROLINA
%
•
1
'
/
MUNICIPAL BONDS
instrument,
•F. W.-
CRAIGIE 8 CO/
RICHMOND, VIRGINIA
Bell System
Teletype:
RH 83 & 84
Telephone 3-9137
several
determining his
pilot must wait
a
before
The
airlines have
real interest in
this development, as lias the Air
very
Master instruments for
tion
other
of
calibra¬
instruments,
rate
(of climb and descent) control
devices, and static altitude control
devices used in conjunction with
automatic
pilots are all antici¬
be
Having*
original al¬
speed indicator
(Machmeter) is also a possibility.
based
pated
timeter.
*
An
Undersea
the
on
air
and
missile
applica¬
tions may also be offered
in the future.
new
device
is
metering
type. air/fuel
in
for sale
stages
theearly
of
development with patents already
granted.
This "carburetor" has
in
Detroit
and
among
the
Over-the-Counter j
Quotation Services;
for 43 Years
major
oil companies, as it possesses the
ability to
accept volatile fuels
regardless of vapor pressure, e. g.,
propane.
It is conceivable that
the carburetor might eventually
make
Basic
philosophy should
and
plus or
fifty
created considerable interest both
stock
in
torical values,
tive
a.h
■
versus
standard
altitude.
evidenced
A
A need lor new money or
prospect of future financing
either
+A*'
VIRGINIA—WEST VIRGINIA
of
Dire consequences can re¬
if
exact
-
.
no
minutes
"profit squeeze."
should
feet
level
sea
a.
is
ascent.
and
many
so
(4)
the
for
^
^
'i
•
Navigation Development Board.
dilu¬
Management should
outstanding
tion present.
(3)
small
at
'
Since 1932
this
of
more
hysterisis (time lag)
between change in altitude and
registration of the fact. Competi¬
tive altimeters lag. several hun¬
dred
feet
in
a
steep
dive or
(2) Capitalization has to be fa¬
vorable
five
accuracy,
minus
•
pro-/
with
There are
Engineering
later.
be
must
pany
ing
com¬
''
Aside from the altimeters amaz¬
/
'
'<
alone,
-
product
*
*"
al¬
annual
Bulova
by
1.
Canadian and Domestic *4
$10,000,000 rate in
a
Melchoir
company
The
( 1 )
Investment Securities
immediate
that
future.
near
less
in
performed
an
fills
$500,000 before
in
opinion,
Dealers
to convince the
as
believed
exceed
vide
Should
are,
(subsidi¬
Watch ,, Co., the*
This altimeter in
tests
timeter; sales
given situa-'
;.
has
and
is
■-•///>/;
Street, New York 5, N. Y.
■
skeptical observer that this
instrument,
tion
my
flight
manner
a
most
may
a
£
,
of
unknown
hitherto
It
prerequi¬
sites
; J
V
..
111 Broadway, N.Y. 6 COrtiandt 7-9660
.
,
vastly
a
market
prises a good
speculation.
Bankers
corporation's field of inter¬
est, experience and patent protec-
of Bulova
U: S. Licensee).
thesis
the
it to itself to
owes
Investment
&
royalty arrangement.
ary,.
Engineering Corporation
'A
Inc.
of
Yamaichi Securities Co., Ltd.
velopment Laboratories,
Security Analyst, New York City
Melchior
,-•/£;• f;
■.
Company
York,
Affiliate
now reaching the production
stage of Bulova Research and De¬
III
New
of
just
LIPPER
write
or
Yamaichi, ;
/
;
sm
information '>.
current
-Securities
be established as
can
For
hi ''/•£. Call
to
-
ARTHUR
■
JAPANESE
Melchoir
designs,
or methods. This means
that for every $2,000 instrument
sold employing a single Melchior
design principle, the corporation
receives $100.
The profit of the
licensee has no
bearing on the
referring
principles
.
Chemicals
branch offices
our
neither before nor since has
a company met the test so well or
intrigued me as much.
t
^
ago;
tion
is
in
one
of today's
most
stock
dynamic
;
that, of
pressure
offers, in5
sensing; In the initial application
opinion, excellent opportuni-;
ties for capital appreciation next
.
NY 1-1557
1
New Orleans, La. - Birmingham, Ala
to
common
my
Exchange
19 Rector St., New York 6, N. Y.
Currently
times
19
earnings
1958
rise
the
56.
1957
largely responsible
was
from
of
the
Opinion that im¬
the company's fi¬
begin to show up
70%.
in
market
points
is
stock
below
26%
Ex¬
Stock
York
York Stock
Members American Stock Exchange
The
evident.
common
would
a
close
money
$15 million
was
Sinking
issued
Pennsalt is
5, N. Y.
of
program
medium
STREET
NEW YORK
for
Conserva¬
tive management has made it pos¬
sible for the company to finance
of
WALL
based
return
the
averaged
tures
LAMBORN & CO., Inc.
for
market of approximately 52. Over
the recent years,
disbursements
for
99
continuous
payments
the
rhis
made
dividend
a
our
has
an
94 years.
IN JAPAN
for
pres e n
Pennsalt
(New
some
should
anticipated
plateau, but rather just the initial
phase of an era of accelerated
earnings.
r e
self
is
the
in mid-57
share
not
Write
51
meet
The
Commonwealth Natural Gas
LD 39
lines
nances
One further-
of relieving
those
products
that
is
Furniture
producers and swim¬
pool chemicals.
The sub¬
stantial
growth
indicated
for
unwieldy corporate structure
has been reshaped in such ways as
to limit duplication of marketing
efforts and to effect reductions in
Bassett
LPG
An
BROADWAY, NEW YORK S
120
should
1958
presently
Members
York Stock
share.
per
less
McDonnell&fo.
and
about
Start-up expenses of new facili¬
ties
New
in net
increase
an
of more than 25% over
expected
1957
showing
of
$2.75
Since 1917
are
high
earnings
the
odorants for natural gas
note
provement
on
profit margins. The re¬
SCRIP
&
essing, plating, petroleum, food
processing, and agriculture, Sev¬
eral products worthy of separate
priced
sult should be
RIGHTS
preceding paragraph. High on the
list would be rubber, metal proc¬
At
current
pressures
.
addition to those mentioned in the
change!
a
easing
major
Specialists in
specialty chemicals service broad
segments of American Industry in
in sales
crease
and
■■
ent-holding company whose roy¬
alty agreement with-its various
immediate outlook for the metal
licensees provides that the:'cor¬
processing industry is cloudy, but poration is to receive 5% of the
any
sales losses in .this market gross sales price ori Melchoir in¬
should more than be made up by,
struments, on all Melchior Dia¬
increased consumption on the part
phragm ,Capsules, and on all in-,
of
rubber
and
paint manufac¬ struments in which the primary
turers.
sensing elements and/or actuating/
capa¬
bilities.
coming
Melchior
industrial
company's
these
earn¬
ings
York 5
120 Broadway, New
WOrth 4-2300
J (Page 2) V
to
power
Ben
—
Jr., Partner, SprayreCo., New York City.
&
gen
ming
product
flow, and
greatly ' en¬
new
1920
Established
a
organization,
Corporation
propulsive
rocket fuels.
Partner, Sprayregen & Co.,
and com¬
long experience
tremendous
GAYNES, JR.
Their Selections
Pennsalt Chemicals Corp.
.
coverage
Alabama &
Participants and
particular security.
a
(The articles contained in this forum
nationwide
in
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 week, a
assistance
Thursday, November 28,1957
Hii*.
,
tion
contribu¬
earnings of Melchior En-
an
to
even"
National Quotation Bureau
Incorporated
Established
1913
greater
46 Front Street
CHICAGO
'
Continued
on
page
41.
•
New York 4,
BAN
N.Y,
FRAWTfVJO
^Volume 186
Number 5694
.
.
The Commercial and Financial Chronicle
.
(2323)
Critical Issues
INDEX
■■■
.
L1 c h t £ nsTfin
B. S.
Articles and News
On the Business Scene
;
'
—Hon. C. Douglas Dillon___
,
'
of
inflation, union
...I
which
as
H
)
;
!
*
doubts responsible
; Alert
edly
On
observers
noted
the
have
of
Americans want to
the
seeming
a
Ameri¬
distinction
hand,
in
paradox.
great
strides
the
technical
pro-
h
a
v
e
extends
volved
de¬
in
be 11
d
u n
Prices
3
B. Lurie
i
Today
-
flation,
e r
union
size.
rate
power,
,V
.
V
;
/>
An
Investment
for
Buckley...
the
D. Reed
Philip
Problem
;
of
In
has
improve their performance in the
traditional business functions. It
is
fair
dunit"
HAILE
'I
York
■
Secret Weapon Is Trade
—Benjamin F.
GETCHELL MINING
:r
EMPIRE STATE OIL
3 STATES
15
______
and Investment
NATURAL GAS
,
Fairless__
17
Investments Require Trade and Other Essentials
—A.
N.
Lilley
19
J, Courageous Credit Engineering—'Herbert
>
f
;
esteem.,
But
v.
-
;
.
R. Silverman
J.F.Reilly&Co., Inc.
30
'
,
*
extend
our
ditional
have
mastery
the tra¬
over
functions,
being drawn
ourselves
more'and
in
areas
businessmen
we
management
find
we
as
into
more
which,
as
unfamiliar
a
group,
we
of the
no
proven competence and
do not find general acceptance.
12.-The cause of the -dilemma is not
difficult to ascertain.
of the
*
Members Salt Lake City Stock Exch.
*
Spokane Stock Exchange
1
years
tions
tended
to
control
the
na¬
tors
,
economic
of
controlling
come
in
factors
.
the
.
,
let
Now
say
at
affairs
will
am
on
be
not
well
business
our
new
a
aware
life.
idea
to
This
I
you.
that the petroleum
J
been
V
for
claimed
*An
37th
address
anu&l
troleum
you
by
meeting
Institute
the
unenviable
Mr. Reed before the
of the American Pe¬
of
Chicago,
Nov.
See It
1___
(Editorial)
—___".
balance.
,•
.
•
,
And
yet,
the
value
of
>
15
'
Exchange PI., N.Y.
Direct Wires
to
Los Angeles
Chicago
18
Dallas
5
—
Our Reporter on Governments
21
39
Public Utility Securities..-
26
Securities
Railroad
Lithium Corp.
25
Securities Now in Registration.
Prospective Security Offerings
The Market.
I do not have the
key to unlock
mystery. I suspect that there
simple or single solution to
inflation. Perhaps all accused are
*■
on
page
..
and
The
25
__•
You—By Wallace Streete___
The Security I Like Best
no
Continued
Radorock Resources
38
____
Securities Salesman's Corner—___:—_—
the
is
34
■
—
,
State of Trade and Industry
United Western Minerals
16
______
Universal Transistor*
2
4
—_____
San Juan Racing
•
Washington and You
44
Common & V. T. C.
26
Twice
.1
Weekly
Gardens,
Drapers'
Edwards
c/o
London,
E.
C.
Eng¬
Lake Ontario Portland
Smith.
&
The COMMERCIAL and
Copyright
FINANCIAL
PREFERRED STOCKS
U.
Reg.
j
CHRONICLE
Patent
S.
Reentered
Office
Cement
1957 by William B. Dana
Company
as
second-class
matter Febru¬
♦Prospectus
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
ary
Schenectady
•
Glens Falls
Worcester
Publishers
Subscription
to 9576
SEIBERT, Editor & Publisher
WILLIAM DANA SEIBERT, President
,
»'
-Other
Thursday, November 28, 1957
of
Canada,
$68.00
per
Countries, $72.00 per year.
Other
Every
Thursday
vertising
issue)
(general
and
every
and ad¬
Monday (com¬
news
statistical issue — mo.rkec quotation
corporation news, bank clearings
Bank
$40.00
state
and
Other
city news,
Offices;
135
3,
111.
per
the rate
etc.).
South
and
Note—On
records,
Chicago
on
Request
Rates
in
United
States, • U.
Territories
and
Members
Pan-American Union, $65.00
per year,
Possessions,
Dominion
TELETYPE N. Y. 14
•
COMPANY,
Subscriptions
'
Chi tag a
DANA
Place, New York 7, N. Y.
REctor 2-9570
Exchange
•
B.
Park
HERBERT D.
ST., NEW YORK 4, N. Y.
•
40
Teletype NY 1-1825 & 1-4844
16
—-—
Our Reporter's Report
plete
HA 2-0270
40
Observations—A. Wilfred May__
?
Boston
•
:
in¬
money
I
Nashville
&
22
News About Banks and Bankers—_____
;
has continued to decline.
Members New York Stock
•
Singer, Bean
Mackie, inc.
8
Bulwark Against
.
13.
TELEPHONE HAnover 24300
Rights
Philadelphia
Spencer Trask &. Co.
Albany
a
33
25
BROAD
&
8
_____
Indications of Current Business Activity.
WILLIAM
25
—
—
land
specialized in
Stock
Tenn* Gas Transmission
44
___
Inflation"
Published
have
V. T. C.
23
NSTA Notes
capacity to produce more. There
has been a tight money policy,
and no flood of easy money .to
overwhelm the supply of goods.
The Federal budget has been in
1957.
For many years we
&
Standard Oil of N. J.
Cover
Mutual Funds
-
industry gets its full share of at¬
tention
in
Washington.
Last
month
in
Detroit,
Mr.
Porter
Ray McDermott
Common
From Washington Ahead of the News—^Carlisle Bargeron
ventories in most lines, and ample
i
As We
/
•
as an
susbtantial
J.
42
Einzig: "American Gold Buying Price Is
-
the money
sought
(Boxed).
Dealer-Broker Investment Recommendations
!
have
"Confidence in the Future"
Coming Events in the Investment Field
shelf.
were
Pacific Uranium
42
__y
Business Man's Bookshelf
was
There
broad statement, perhaps
too broad. But I made it deliber¬
a
ately in order to emphasize both
the fact
and the importance
of
the growing influence of political
;
was,
as
Teletype: SU 155
32
/' Bank and Insurance Stocks
antidote to inflation 10 years ago.
that
once
7?
quite
as soon
I
Regular Features
it, and what had to
conditions that
me
spoke
Exchange PI., Salt Lake City
DAvis 8-8786
27
San Juan Racing
During the past year the coun¬
try has experienced the kind of
our
economic life.
this is
'*'■
";'w
what- it
39
'
Quacter
stabilized, the Fed¬
eral
budget
balanced, and
the
country had plenty of goods on
story:
Political determinations have be¬
.
'
HEnderson 4-8504
26
Purchasing Agents Don't Expect Business Upturn in Fourth
.
pass
supply
life.
Those words tell the
' '•<
about
caused
would
(Boxed)
CED to Conduct Independent Monetary Survey
•
They described
it as too much money chasing too
few goods and most of them ap¬
peared to agree that the threat
tion's political
life.
Today the
pendulum has swung, and politi¬
cal determinations have in large
measure become controlling fac¬
.
Co
be done to halt it.
Twenty - five
considera¬
Politician
vs.
how it is go¬
see
Economists
confidently
what
Banker
Fourth Quarter Business Prospects Assayed by Cleveland Trust
would prove to be
difficult mystery to un¬
ravel.
economic
ago,
V;
our
book and
a
DIgby 4-4970
14
Teletype: JCY 1160
inflation
such
(Letter to Editob from B. H.
regarding H. Eugene Dickhuth's Article)
Exchange PI., Jersey City
"who¬
Ten years ago no one suspected
that
It grows out
increasing complexity
of our society, which tends to put
greater and greater emphasis on
political
as
distinguished from
factors.
Narveson
Word for It"
a
and
ing to turn out.
ever
economic
"The Greeks Had
inflation
greatest
time. Erie Stanley
Ellery Queen, com¬
probably could not fashion
a more
complex plot. The finger
of suspicion has pointed at vari¬
ous
times at government, busi¬
ness, banking, unions, world pol¬
itics—yes, an deven at gremlins!
Unfortunately, the story is not yet
ended, and though the outcome is
of critical importance to us all,
we canont skip ahead to the back
of
Gardner
\
.
even
J
literature,
MINES
10
Inflation
the
4-6551
Authority's Problems and Progress
Austin J. Tobin__
bined
to
say that the technical
competence of present-day man¬
agers is
generally held in high
-
current
become
STREET, NEW YORK
9
_
Sales
14
New
Our
First, inflation.
variety
of
measurements
have
been developed to help managers
WALL
MANUFACTURING
'
im p r e ssive
dogs!
HYCON
Future
i
and Direct Industrial
•_
tegrated. An
99
7
Products:
How to Watch Your Investments—Lewis D. Gilbert
.
V
and corpo¬
v
and
6
12
industry at
•
always brimful
cats
Telephone: WHitehall
Investments lor Freedom—Leland I. Doan____
•
like to discuss
would
5
for Price
—Ralph ,T. McElvenny
yy
.
I
of
owners
4
____
Tallamy
J The Future of Natural Gas
a
to
for
99 Wall is
4
Wages Responsible
or
Backman
Forest
L.
three of these issues with your in¬
rstood
e
—James
better in¬
and
Scene—Philip D. Reed__
—at
•
all times.
cision-making
are
—Bertram D.
•Timber and
being
economic health of all
in¬
wmmmmmmmmmmtmmj'
AND COMPANY
Federal Highway Program and Petroleum
Industry
a particular
particular timer It
issues "affecting
the
industry at
The
factors
Administered
ment in the affairs of
d-
a
Are
yond the Intervention of govern¬
organization
vanced.
~
point, how¬
that the significance of>the
shift: in emphasis ; between; eco¬
nomics and politics extends be¬
of
u e s
of
the Business
on
Real Estate for the Well Heeled—Ira U.
Cobleigh
/ Inflation?—Jules
{
the?;
enter
a
r
I wish to make the
management.'
The
t e c h-
"
THE CORNUCOPIA
.
ever^
ficiency of
niq
tForeign
"subjects to
more
problems and greater vul¬
nerability than any other .Ameri¬
can
indsutry in its relationships
with government."
been
made
Asks business to
smaller.
.
^Factors Making for Bear
Market—Roger W. Babson___
companies
great
i see
-
Cover
[The Stock Market Ahead—Sidney
a
have undoubt¬
scene
one
as
c
-
-
of public opinion and make its ideas known.
arena
business
can
large-scale enterprise
on
Cover
_
;
Three Critical Issues
.
comforting friend rather thair
Congress to end closed shops; and
on
country made
our
fi
.
dangers of
said to affect the economic health of all indus¬
are
deadly foe; calls
of
specifies the
and the atack
power,
inflation and/or regard it
a
and
'
-
Consequences of More Currency Debasement
—Allan Sproul
r
Mr. Reed fears the nation may relax its fight against
try.
vt
politically-oriented issues that demand
businessmen
(
■
Dire
,
attention
'
Meeting; Communist Threat via Trade and Aid
Chairman, Board of Directors, General Electric Co.
the
Page
■
By PHILIP D. REED*
G. E. head delves into
*3
La
(Telephone STate
Salle
St.
2-0613);
of
year,
Record
(Foreign
account
of
the
Monthly
Postage extra.)
—
fluctuations
made
in
exchange, remittances for for¬
New
York
funds.
FRANKEl & CO
INCORPORATED
39
BROADWAY, NEW YORK 6
3-3960
Teletype NY 1-4040
& 4041
4
Direct
Wires
to
in
eign subscriptions' and advertisements must
be
W» V
WHitehall
Publications
Quotation
year,
S.
of
in
PHILADELPHIA
SALT LAKE CITY
The Commercial and Financial Chronicle
4
Factors Making
For Bear Market
The Slock Market Ahead
By SIDNEY B. LURIE*
Co., Members N. Y. S. E.
Market
Analyst, Josephthal
Former
1
President, New York Society of Sccrity Analysts
&
maintains
now
The determinant of
ket,
discounted
by market's declhie; and points to bullish aspects of the bond
market. Cites buying opportunities in low-coupon municipal
bonds, in finance companies and oils, and in four specific
Asserts dismal business outlook has been
buyer.
in
don't
Street. Let
The
bond
market has
turned upward. This is bullish on
(3)
for
cessful
(1)
on
new
a
readers
whether
know
vve're seeing a
tail
we
Sidney
of
thinks
market.
.•
Lurie
B.
time for
;i
-
a
individual stocks
buy
well
as
to
as
bonds.
new
The
market.
stock
the
measure
the
better than a
supposedly
which
market
little
are
averages
me
first say
that every¬
thing points
!' t o
good
Christmas
next
disillusionment, new
yardstick.
30-inch
Don't delude yourself that
are buying stocks for income.
you
important—but the only
buy common stocks is
for capital gains. In other words,
you risk your capital no matter
you
is the
Have the courage of your
convictions •— and concentrate
rather than diversify. Most suc¬
cessful businesses make the bulk
(3)
recognize mis¬
takes—and
your
desirable
least
most
limit
Further¬
losses.
when you decide to reduce
security inventory, sell the
more,
Early
Late
Too
to
the
not
promising.
(5) There are only a few times
in each span of years when it is
wise to "bet the bank roll." This
isn't
of them. There are,
how¬
ever, a few times each year when
the calculated risks suggest being
an
aggressive buyer — or seller.
one
Worry
"scared"
1958—and too late
about
about 1957. If you're
flexible, if you know that specula¬
tion is not a simple business, there
to
worry
are
from
par).
Finance
of
times
the
to
be
a
buyer.
Mind you, I'm
it!
from
that
not' implying that
bull market has started. Far
Nor
trying to
business
new
a
I
am
say
is
boom
in
prospect. Actually, I think busi¬
ness will get worse—before it gets
better. There is little
of
or
chance
no
improvement until the second
half
of
1958.
In
are
a
number
of issues which tempt the security
buver's dollar—if you know that
stocks
merchandise
are
realize
that
this
will
is
—
era
an
if
you
where
be
separated from
whatever you do,
But
know what you are doing. This is
a
business
which
pays
off on
imagination. It's
business which pays off when you
act with your intellect—not your
and
emotions.
The Stock
ent than
fer
Market
is
no
differ¬
life itself—it doesn't of¬
security—but it does offer
portunities if
accept
the
you
same
op¬
willing to
are
calculated
risks
took when you got married.
you
effect, therefore,
A'bel
UNIVACS
R. E. Kohn Branch
in
prices
Wall
Street.
made
are
factors—with
And
by
many
business
the
trend
being onlv one of them. In effect,
my
bullishness
on
the
inter¬
mediate
stock
stems from
market
several
outlook
factors:
(1)
We've been through a fi¬
panic—and the storm of
forced liquidation has blown itself
Co.'s
to
the
near
future.
takes
a
surprise to make a
price trend—and there is no
*A
talk
It
new
sur¬
by Mr. Lurie before the B-thEI Mens' Club, Great Neck, N.
Y., Nov
21,
1057.
E.
past
has
been
all
other
no
Kohn,
a
Senior
When
Bull
-!
■
bit of encouragement was given to business last week
news
that Federal Reserve officials were considering
the
Banks.
'
He told the House Small Business Committee the discount rate
i
cut
probably would have little mechanical effect in expanding the
volume of money in circulation, but intimated that other actions
might, follow. Steps that could be taken to this end, bankers noted,
include Federal Reserve purchases of Treasury bills in the open
market and reduction in the reserves member banks
are
required
Kohn
&
according
Richard
Partner.
Mr.
by
portfolio
Market
Bull
increase
Markets
the first indication of a Bear Mar¬
ket.
Furthermore, such Bear Mar¬
kets ultimately include commodity
stocks
and
an
planning.
"
(Special to The Financial Chronicle)
FRANCISCO, Calif.—Don
Hopper has become connected
with
Davis, Skaggs & Co., Ill
Sutter Street, members of the Pa¬
cific Coast Exchange.
formerly with
Company.
was
&
One
bonds.
however,
extend beyond
activity,
Mr. Hopper
E. F. Hutton
Steel company presidents and vice-presidents are shoring up
customer relations from the top down and old-time salesmen, the
ones who know what "hard sell" really
means, are showing the
or
an¬
point
low
the
the
stock
its
of
cycle,
Here is what the mills
course
in
are
whereas
back,
real
estate
the
is
last.
of
were
we
Standard, the
approach of a
These
on
are
are
hard times for the mills.
mass-production basis.
a
It is
a
They
strain
on
set up to operate
their scheduling and
are
distribution systems when they are forced to handle small orders.
The fact that they have been able to do it is a tribute to their
ability to meet changing conditions, this trade weekly declares.
Continuing, it notes that
have
now
one
of the biggest sales tools the mills
is_quick delivery. This has forced them to
I linn-usual
inventories of
finished
steel, backed
up
carry
heavier-
by unusually
large stocks of semi-finished steel.
The
period
of
inventory correction
probably will continue
There could be a
well into the first half of 1958, it further states.
substantial pickup in demand in the last half if the forecasts ful¬
some-of the major
on
Gold
a
steel-using industries
pan
out.
best sign of the
Bear Market was
why, in spite of the current lag, most steel producers
are optimistic about prospects for last-half 1958 business:
Highway
construction will be gathering momentum. One major mill pre¬
dicts that more than 2,400,000 tons of steel will go into roads in
ing equipment,
Gold
was
Standard, but
Standard.
The
Washington
Political
on a
cannot
forever
they
ex¬
can cer¬
tainly stretch it out.
Another
system
which
has
worked fairly well is forecasting
markets is the Dow Theory. This
originated
was
of the
one
many
reader
anv
ago
years
former
owners
T pre¬
secure
can
of
an
advisor.
investment
or
Just
now,
however,
this
Dow
Theory is out of style.
I personally have been guided
the
bv
Area
this
Briefly,
business remains
mal
line
nothing
of
to
so-caPed.
Tbeorv.
means
that
near
*s
its
growth
fear.
long
nor¬
have
exceot
feu-
however,
form
an
business
Ar^a
of
little
or no
be
a
20% hike
over
1957.
Sales of roadbuild-
builder says, will jump 10% next year.
gain this year, "The Iron Age" declares.
one
There
Oil and gas activity should be on a par with
1957, which will
Oil well drillings this year will be about
for 1958.
Shipbuilding is
shipyards in the United States and abroad
go down as a good year.
58,000 and the
going
strong
level is expected
same
with
booked ahead lor several years. General construction volume will
be high, despite the expected slowing in some lines and appliances
are
expected to make
sales.
Part
of this
a
residential construction.
on
a
par
comeback after
of relatively slow
predicted increase in
Automotive production should be at least
a
pickup will be due to
year
a
with this year's 6,000,000 units, barring a strike.
Meanwhile, the mills know their customers
are chewing up
analysts say actual steel use in
1958 could equal that of 1957, which may turn out to be a record
year.
They point out that steel consumption should not be con¬
fused with steel shipments in making evaluations.
steel at
a
fair rate,
in fact
some
Under these conditions, a better-than-expected spurt
of the major steel-using industries could
spark a
more
more
steel and
"The Iron
in one or
rush for
put the industry back on the upgrade, concludes
Age.'"
some
unexpected eventuality.
Whfm.
That would
1958.
in
Government
tend prosoerity: but
to
up
are
they need it.
very high interest rates.
Today,
however,,we are no longer on the
as
and
seat
Here is
When
bv
against: Steel users have set a
sticking to it. They know they
cutting their own costs at the
They are living hand-to-mouth on inven¬
the mills to give them quick delivery when
are
inventory-cutting and
the driver's
expense of the mills.
tories and counting on
still
is
market
high. Stocks are usually the first
to collapse and the first to come
long-neglected tricks of the trade.
newcomers
may
The bond market may now
at
very
G.
,
The steel industry this week heads into its slowest demand
period since 1954, "The Iron Age," national metal working weekly,
reports.
become overextended, that is
and
broker
Davis, Skaggs & Co.
SAN
in
there
seen
fact,
exDlanation of it bv contacting his
bond specialist and
on
Bull
follow
In
decade,
during these 50 years as long and
as
profitable as the one we have
experienced since 1942.
sume
office,
announcement
authority
and large, the market
has discounted the shape of things
in
Richard
Elizabeth
an
Aibel is
By
come
of
manager
out.
to
of
ELIZABETH, N. J.—Herbert M.
Aibel, has been appointed .co-
E.
nancial
(2)
the
have
I
Markets.
'
the "Wall Street Journal."
what I'm saying is that speculation
is an applied art. There are no
stock
Bear
they
Naturally
be
there
Street,
five
Markets §uch as we have
while
word,
Wail
on
other.
Pharmaceutical.
Wilson & Co.
knowledge
No Forecasting Univacs
new
spent
anticipate
boys.
one
1
witnessed
of
man
is
Wall Street, a part of which time
as
a
year.
50 years of watching
my
type
the
this
During
well
Tn
have
prices and real estate activity, as
Companies.
Oils.
the
Dow-Jones
result of the Thanks¬
ol'Employment Security reported.
about, at least this
worry
Georgia Pacific.
The
Industrial
the
as a
nothing to
,
a
is
Average now around 430, I think
With
there
business
Roger W. Babson
Scared
Be
word, it seems to me that
temporarily too early to be
In
it
to
Norwich
—
that
who attend to
Too
St. Regis Paper.
items
observed
Initial claims for unemployment insurance dropped 7,400 to
301,500 during the week ended Nov. 16, but topped the year-ago
figure by 84,000, the United States Department of Labor's Bureau
opening
to
closing
and
spending.
many issues which look quite
interesting. If it were easy to get
of their profits from only a few
"fat" financially, there wouldn't
products—not the complete line.
be
enough Slenderellas
in the
(4) Every businessman knows country to take care of every¬
that the first inventory loss al¬ body. Meanwhile, I think the fol¬
ways is the smallest. In the stock lowing groups and issues are quite
market, however, people seem to interesting for purchase.
get stubborn—which almost al¬
Low-Coupon Municipal Bonds
ways is wrong. This is a business
(which now sell at deep discounts
must
in which you
further
to maintain against deposits.
from
stores
field—because of easier credit and
to
buy—and appreciation
only compensation for risk.
what
their
at
are
probability
that
the
is unlikely to reverse its
increased defense
Sure, it's
reason
Re¬
who
tailers
the
over
economy
(2)
business.
early in 1958. This is when
might see some disappointment
until
we
It
Congress that the Reserve System's open market committee may
increase credit supplies as a follow-up to the half-point reduction
the past few days in the discount rate at five Federal Reserve
Let
/
not shocks, probable won't be at hantf
—
1958.
of
further steps to ease credit conditions. Alfred Hayes, President of
the Federal Reserve Bank of New York, it was reported, hinted to
•
You
with
com-
stocks and
managed economy
the
first-half
substantial
a
Some
rnodity prices,
opinion,
my
be
ingot capacity, a 15-month low point,
giving Day holiday.
,.
In
(6)
the
pickup in demand in the last half if the
industries materialize.
This week steelmaking operations are expected to drop to 73.6%
to
in
now
are
estate and
real
stores,
work.
at
what
into
forecasts for some of the major steel-using
This applies to re¬
Bear Market.
(5) Speculative psychology has
improved—for we now have a
jense
of
national direction
and
your
well
could
a
anxious
are
frailties.
.luman
Don't
expect
of
Most
suc¬
ask
the
look
to
nature
/ear with optimism—and we, who
speculate, must capitalize on the
lation:
he
should
year
.lurnan
specu¬
broker
retailers
good Christmas business.
/
when the market al¬
aiways trends upward. It's
me
point
by offering
five
rules
j
Seasonally, this is the time
the
most
the
illustrate
J
this week had a very depressing effect upon
the first of which was the news report on
Tuesday that President Eisenhower suffered a cerebral attack.
The stock market turned sharply lower in the closing hour of
trading and tickers ran as much as seven minutes late. Coupled
with the President's illness, the steel industry, "The Iron Age," re¬
ported on Wednesday, last, was heading into its "slowest demand
period since 1954." With respect to the period of steel inventory
correction, this trade paper added that it will probably continue
real
a
dicts
down.
is
business
of
Production
Business Failures
Two major factors
business and industry,
have faith in the pres¬
.
Industry
of
neighbors feel. Tf
your
.
Food Price Index/
Auto
and
started."
Explains the forecasting tech¬
nique of the "Area Theory,"
which he believes is preferable
to the "Dow Theory," and pre¬
3f
to Wall
comes
.
Retail Trade
Commodity Price Index
Babson
years
Administration, then
ent
(4)
it
when
sense
Carloadings-
Bear Market has not yet
trend
fact that the
the
in
prise
common
use
and
you
most
stock
"magic key"
and
50
Production
Electric Output
,
er's dollar.
is
there
think
Mr.
to
upon
Steel
State of Trade
mar¬
prices, in that it removes
competition for the security buy¬
Speculation, like any business,
requires faith, courage and ability.
It requires common sense.
Un¬
fortunately, however, most people
v
—
according
drawing
bear
a
Thursday, November 28,1957
The
background experience, "is how
stock issues.
a
.
fr
By ROGER W. BABSON
while advising against "betting the bank roll,"
is one of the few times for being an aggressive
Market analyst,
a
..
(2324)
begins
P~0«npritv
October witnessed a further drop in the volume of building
permits in 217 cities and marked the sixth straight month to fall
below the level of
a
year ago,
Dun & Bradstreet, Inc., reports. The
was $501,328-013.
This
above the normal line lpr<mr than
total valuation of permits issued last month
previous
compared with $524,374,748 in September, for a loss of 4.4% and
with $535,228,128 in October, 1956, for a decline of 6.3%,
areas, we
£*uard. When the
must b*1 on our
area
b^enmpg too
the
Area of Denression be¬
normal line begins to
develop.
SfeeVq and retail nrofits
large,
low
an
Continued
on
page
5
For New York City alone, building permit values-fell to a
comparatively low level, totaling $34,983,647. This was down 21.7 %
Continued oft page
31
Volume
186
Number 5694
.
.
The Commercial and Financial Chronicle
.
(2325)
tax
Foreign Real Estate
Observations
.
.
Enterprise Economist
Before going into the
many pro's
time-out to define what we
and
con's,
1
a v,
,
•- ■■,
■(
the
of
amount
goods
for consumer use."
let us. take
inflation. As
services
and
::
available
The
tired
recent
stock
market,
action
the
the
or
real
to take
power.
look
public's
definition,
on "so-called
inflation,
view
be—t. ere surely can
may
be
|
keeping one weather-eye
as a factor of which
the investor is acutely conscious. Through both
I'
A. Wilfred May
often
today- -tied
concept,
to
has
tended
popular
to
be
invest^-
percent- ; for,
depreciation.
drawback
Since
real
to
a
should
solely for
upon
A well
located, qual¬
rewarding in¬
the first things
are
and
major tions
the
invest¬
estate
ment has
always been the absence
liquidity, American investors
hold¬
ings to well, located commercial
of
11
are
t ive:
r a c
yields
—from 30% to
100% : above
the
;of
Cobieigh
U.
ira
apartment
or
larger
properties
cities
growing
and
—
the
in the
fastest
This policy is
ones.
the
present
best insurance of favorable future
yield
resale prices. And, of course, seek¬
average
academic
an
wage-escalator
as
reasons/
ity holding, with
should confine their foreign
a
this factor
merely
topics
news
new
real
higher
as both
a threat and support to your investment posi?
tion. Whereas in past times the inflation factor '
on
In Venezuela, this
ducements
bull and bear market movements, you've been
|
15%.
investment
embarked
be
tax
] -.t+
ment. The; in¬
its' continuing timeliness
I",
the
a
at
estate
doubt about
no
of
realty
not
to look
attention
considerable
current tage would be higher with com¬ should
Ipe given to the trend of
parable
commercial
realty
re¬ realty prices in the subject city.
turning 12%o.
In such metropolises as Vancouver,
tions.Y has
In the case of either country, Calgary, Winnipeg, and Caracas,
caused a num¬
however, the return would be var¬ there has been a dynamic upward
ber of knowl¬
iously between 40% to 80% in¬ price trend in real estate in the
edgeable men come tax-exempt to an American past decade, which, if continued,
of
substance
owner, through the allowance for should remove most of the objec¬
But—however controversial the
'■
.
tax
eminent corpora-
.
preserve
advantages.
inheritance
the
and
our more
emphasis
concept of inflation, as used (and some¬
times misused) is mostly concerned with the
depreciation of the dollar; in the context of
value in terms of purchasing
results
downtrend in earnings of quite a
few of
For investors the
managing one's portfolio to
favorable)
reciprocal
come
of the
\
tax
ance
a
Ia
major
on personal
ownership of foreign real estate,
especially with reference to its higher income^yield and inherit¬
working definiton, stripped
'
less
agreement with the United States.
,;'Now it should be obvious that
'r'.l
Some field notes
by
a
of the customary excess verbiage, I
would offer the following: "A major
price rise resulting from an in¬
crease
in the money supply which exceeds
mean
would have run into
Quite similar
(but
foreign property been located in
Venezuela, since that country also
has
By DR. IRA U. COBLEIGII
*
WHAT SHALL THE INVESTOR NOW DO
ABOUT INFLATION?*
,
somewhat
For the Well Heeled
t:
moment's
figures.
could have been achieved had the
.
By A. WILFRED MAY
-
saving
six
5
the
to
realty holdings there, so
liquidity is concerned, Real
anywhere is quite easy to
self, on a steadily rising market!
•;
Remember, : too,, that
foreign
real estate must be individually
(npt corporately) held; for maxi¬
mum
tax advantage.:'Further, it
should be held preferably free of
.mortgage lien as there is some
possibility the inheritance tax ex¬
far
as
estate
Dow
ing the guidance of a reliable and emption might not apply on mort¬
responsible realty firm in the se¬ gaged property.;
'!
Because
of
lection of property is always an
the
very
heavy
shelter via
depreciation; a fine excellent idea.
American security investments in
hedge
against inflation
(which
Just so we don't keep this piece both Venezuela and Canada, and
is
the
the amazing and sustained rise in
ultimate,; if
not
the at the theoretical
level, let's set
present propellent of our, econ¬
gross national product and per¬
(Jown an actual example of an sonal income in both
omy);
'and,
infthg:^;case."of investment account, including Ca¬
countries, it
certain
foreign
countries,
a nadian real estate. We assume our is only natural that Americans of
very important defense for U. S.
solvency
would,
in
due
client to have $350,000, $250,000 high
citizens
against
the
impact
of of it invested in American secu¬ course, become interested in realty
Jones
indus¬
;
clauses and discussions
a
Cold War Defense spending—it is now
over
taxi-driver conversation item.
tie-ins
on
contracts, the aulo worker is
wage
economist.
With the spread of cost-of-living
Then too,
Savings Bonds contained in their
the
million
50
conscious;
as
of
now
inflation-
an
with the repeated citation of the drawback to
has the prospect for
wits scared out, ol him by the
dollar-depreciation,
exposure
holders
E-Bond
been
have
made
inflation-
mutual fund purchase had the
a
distributor's picturing the fund-less
individual's ruination by the inflation threat.
trials;
inheritance
review the
now
us
ligent investor, today.
degree, and
market force?
elements
other?
on
shall
How
inflation
of
course
Picture Ahead
inflation factors
as
How should you
the
Again,
one
how
facing
the intel¬
you,
the
long- and
a
as
importance,
short-term
a
chose between inflation hedging
hand, and sound investment criteria
should
selection
the
of
tax
number
investment
on
of
have
books
and
in
American real estate from vacant
appraise
you
written
income
A
taxes.
excellent articles
been
The Inflation
Let
considerable
a
specific
the
on
stocks
be
land
to
skyscrapers,
and
leaseholds to lease backs.
from
For
to¬
day, however, we've narrowed our
field
of
discussion to
much
a
outside
property
United States..
Why
slanted to accord with inflation factors?
•
.
the
Comparative Changes in Cost of Living; and Share and
Bond
Prices
abroad when there
line values here? For
quite
valid
reasons:
(1)
look
TABLE
1037-1957
(through Aug.-Scpt.)
Proportion of
Living-Cost
Share
Living
United
Kingdom
Italy
•
Switzerland
France
+123
+120
+133
Union of South Africa
S.
U.
r
+ 1.270
Sweden
A.
Rise Offset
Prices
80
+
Bond
<
TABLE
Prices
4158%
+208%
+163
+6,000
—62%
—60
—24
—34
—65
—44
—31
—33
+ 78
+3,997
+119
+5,840
+134
+ 21
+247
hy Stock Rise.
75%
48
67
149
460
109
18
186
Proportion of
Living-Cost
Bond
Share
Living-
Prices
+110%
+149
Chile
Canada
+
Rise Offset
Prices'' by Stock Rise
20%
+
*Pcriod,
1950~LD57.
n.a.
Not
U. S. A.
18%
34
—23%,
n.a.
deployment
+219
+1,000
288
44
—37
0
+150
—48
+
1937-1951
-
1937-1952__
+
+
1946-1951
+
June
to
of
June
each
III
Offset
+
85
80
33
-4-
83
+
42
by Stock Rise
33%
+
lected.
31%
\
his
40
62
as a
the long-term
a
tion
87
27
64
Social
are
we
now
on
third alternative, possibly a mere foothill with the major
.
one
of
a
Research, New York
current
City.
series
funds
are
*
of
Continued
lectures
at
the
on
New
page
School
to
estate of
words, in
value
ol
the
a
Here's
out
widow
a
calculation
the
how
distribution
assuming
two
and
Gross' "World"
Realty
sons:
Estate
Canadian
Less
(half
$350,000
100,000
Exemption
allowed
$250,000
widow
to
62,500
of $125,000
Adjusted Gross Est",te—$187,500
Less
2052—60,000
Exemption Sec.
property
Under such
an
arrange¬
further
He
from
benefits
between
Canada
Vene¬
and
Taxable
8.
$127,500
Estate
Inheritance Tax
S.
U.
41
for
S.,
U.
"geographic proximity and
a com¬
language. Good commercial
building properties in the larger
Canadian cities presently yield a
this
if
But
U.
S.
above
on
$27,950
._
estate
been $202,500
Thus,
the
S.
U.
that
have
you
tax
is
however,
saved,
not
yet
will
Canada
as
calculated the
charge.
Here's
of
value
net
Aggregate
property
sonal
income
apartment
9%.(before
taxes)
houses
with
yielding
per¬
some
up
to
op¬
bit "stock weary."
a
froyn
4
page
Making For
Bear Market: Babson
usually begin to decline in the
part of the Prosperity Area,
begin to come back in the
last
and
early
the
part
of
Area.
The
word
rather
than
high
if
area
above
the
line
normal
last
-
a
shallow
used
because
below
or
the
as
Contrariwise,
will
area
Thus,
longer.
Theory,
cast
is
low
is
than if it is shallow.
a
Depression
AREA
or
deep, then it will
much shorter length of time
tend
under
last
to
the
cannot make
you
Area
a
fore¬
the length of a
to
period
of prosperity or of depression un¬
til you know its height or depth.
During
previous
periods
of
prosperity, a very small percent¬
age of the people owned securi¬
ties,
or even real estate.
Today,
however, markets can be very
influenced by the thinking
of
investors
srhall
scattered
throughout the country—that is,
"John
Q. Public." Furthermore,
owing to the strict sunervision of
(11.9V
j
$25,000
X
Total
End
(10.7V
2
$100,000
ol
of
S.
5,350
$11,300
—
(as
shown
$23,500
—
Tax
Paid
before
was
the
clearly illustrated
very
second
election
of
President Eisenhower. Most stock
the
businesss
and
the
"bloom
analysts
was
off
and'believed
John
a
felt
the
that
rose"
in
Bear Market
The tremendous vic¬
11,300
1—
Q. Public.
other
uplift
criterion
are
you
most
of
real
of
This caused an¬
the
Period
of
the
whether
Bear Market
a
and
market
the
Therefore,
now
in
and
present.
$12,200
Inheritance Tax Saving
to
extension
Prosperity.
we
to U.
-
Canadian
This
during
an
—
Canadian Tax
paid
they did
regime.
as
had started.
Result:
not
above )
Less
Share
-
the
5,950
Son's
on
market
Roosevelt
1955
Toronto
-—_
Shar
Widow's
on
Exchange Com¬
mission, the bankers, investment
dealers, and large investors can¬
not form
pools do influence the
tax
mon
return of around
the
tory of Mr. Eisenhower in 1956
entirely changed the attitude of
$50,000 >„
Tax
we
that goes:
way
Tax
have
would
requiring $51,450 in
will perceive that
property lessened
by $23,500. Not all
Canadian
of
of
taxable
tax.
had been
Canadian, the
realty
instead
the
investors
presently prefer
probably because of a
stable political history, closer
and
the Securities and
Tax
taxes.
lure
much
i_j_
Estate
C.ro«s U. S.
Less' deduction
extensive,
a
Canada,
view of the price level,
the
in
do
by the payment of corpora¬
As
year.
V
than corporate,
the inheritance
aforementioned
proportionate share of depre¬
his income is not di¬
luted
limitless mountain, or perhaps only at a major peak?
^Transcript of
since
ciation, and
78
73
included
in¬
ment, each partner owns directly
and personally an undivided in¬
terest in the piece of realty se¬
Living-Cost Rise
Price
foreign real property need not
rate.
Canada
shall refer to
Generally, however,
limited partnerships are entered
into, with the liability of each
partner limited to his initial in¬
vestment.
+
money
possible.
more
From
the side of
we
rather
one's
zuela,
•Front
And
benefits
If
is
Living
1937-1950
them.
outright ownership of
+107%
Code, 1954, specifies thai the value
certificates.
Proportion of
—
are
the
pot apply to ownership via stock
available.
Share
for
American
of
into real estate abroad
166
;»-
S. 2031(a) of the Internal Revenue
U.
Changes in Share Prices and Cost of Living—
1915-1920+
attractive
and Venezuela—so we'll talk about
dividual,
Other Periods
Or,
most
now
tax
Cost of
dynamic
Factors
in
government
a
Continued
Conventions
June,
1941
and
amended in November, 1951) only
the country in which the property
of
attractive
portunity for capital gain may
well appeal to those who are at
if the
Under the U. S.¬
(effective
The
areas;
considerable
a
tax,
passes on.
Canada
Death
Tax
are
By those criteria, the two coun¬
tries
ownership,
TABLE
inheritance
owner
works
75
90
the
those
the moment
how
duce
in
yields and lower tax bite provide
from
enough
income standpoint, but consider
this Canadian realty can re¬
an
and other
stable,
static but
a
342
+
attractive
decedent.
In
settling the af¬
fairs of our deceased friend, what
with a strong currency and no im¬
looked like a 8350,000 gross U. S.
pediment to money transfer,
estate bracket is immediately re¬
(2) An economic climate en¬ duced by $100,000; and the U. S.
tax
on
this
much
couraging private enterprise and inheritance
the quest for profits.
lower gross is paid at a far lower
—35
—
That's
gross
—40
46
$9,000
$4,500 of that, tax exempt.
be
(1) A
politically
economically
sound
-{-323
76
Egypt, for example.
simple and clear:.
36
+
A
S.
or
investment—Sy¬
The desired national attributes
+ 51
+557
+
Union of South Africa
U.
ria, Poland
+746
♦Germany
such
for
(3) Not
of
___________
dra¬
more
economy.
Cost
Australia
unsafe
II
(1048-1957)
Spain
(2)
returns, before taxes,
the U. S. portfolio and
from
the
building
with
on
opportunity lor capital gain,
is situated
levies a
tax
on
the
and (3) substantial saving in in¬
succession to real estate. Supple¬
heritance
taxes.
Now
obviously
menting this Canadian Convention
many foreign countries are highly
Cost
Netherlands
yield,
net
matic
I
of
higher
This
9%>.
$10,000
....
are so many
three
yielding 5% and $100,000 in
Toronto office building yielding
less
publicized form of realty—income
producing
rities
a
or
of
real
not
is how
neighbors feel. If
faith in the
Administration, then a
your
you
Bear
have
Market
has
not
yet
But, if you are fearful
sizable tax saving.
Had the es¬ and unhappy, my guess is that
tate been $1,000,000, however, with +he Bear Market has started in
$300,000 in, Canadian realty, the earnest.
This
illustration
reveals
a
quite
started.
6
(2326)
f
Wages
By DR. JULES BACKMAN*
University
As the boom subsides and wage
unemployment
narrower
in the offing instead of
are
This conclusion follows the Economist's
tered
The rise in prices during the
past two years has resulted in a
examination
renewed
of
causes
has been
inflation.
The
analysis
com¬
developments
the
mone¬
usually
ated with price
the
been
price
jhr^
rise
in
All that such
a
i o d
of
budgetary
surpluses not
Jules Backman
The
.
'
/
Administered
Nor
can
we
,
Prices i
Flexible
that infiex-'
assume
few
prices" and
flexible'
"more
The commodities included
index
something other than the
inflation experienced in
the
administration': and
of
fact
procedure used
!of ^^el^orXSoruf anf ' lows:
able
tcred
that
deficits! It has
^
X
used
nkto'od
c
assumption that there is any , beusually are very havior pattern for an adinihisresponsive to any threat of infla¬ tcred price as such.
Clearly,-if
tion.
prices
can
have
Nevertheless, in the past administered
two years, this index has declined.
varying degrees of flexibility or
Here
is
a
dramatic illustration inflexibility, we must go beyond
p e r
live ^poultry,
and
supply-
Domestic
the BLS
demand
data
i
fol-
was as
Concentration
were
only for 5 digit classes.
a
administered prices" destroys the
this
,
count
a
there may be "inflexible adminis-
"ip
two
and
Incdu^d ip thjs-,
iblc prices and administered prices
are identical. The recognition that
a
matching up tne
series, there is bound to be
which declined accounted
g?ven "j^riod
sLe
ministration.
index
hides
were
defe
War, this index rose 50%
times as rapidly as the
weeks.
in
past. This
has
this
category
The
determine
1956, this index rose 5% in
have
inflations
To
comprehensive
wholesale
price
index.
During the Suez crisis in
associ¬
this
sig¬
a
in
This analysis- is a preliminary ■*
eight .groups of market prices .
one and is confined to five major
for.only'x
which prices are administered, it 4/9% of
the index.
'
*
X' groupings in the Census of Manu- ■
is necessary to examine the con- X
factures
primary metal indus¬
Mo . • fmarkGt nrices which
deelined from Ju»o.-J«55 to June ', tries, fabricated metal products,/;
machinery ' (except ' electrical),^
r
iu
u
1957 were aftected by large ;i£ri- electrical
machinery, and trans-7*
change
d
of cultural-surpluses;:
portation equipment. They cover %
about 40^ of manufacturing em- *
as is
by
ocon,
ployment.
X / -v J.'v '
monthl
three
or
which
jn
judgment plays
role
nificant
some disagreement concerning the
skins, animal fats and oils, fresh combinations included in
any surand
dried fruits and vegetables,,
vey.
:.
•
Y'\.
: *
and, livestock
most unusual per¬
a
for
formance
Korean
tary and fiscal
been
That this is
9 welght , of < 6.7% ; ill Ihe..
wholesale-price index/Included
„
Since the
—
are
general
best, a very
be made
element of
6•
hc,d
,.
can
between the two series.
™rkeat jggjVtfh
a
market
ma
.
.
;r
.
described as inflationary
may be illustrated by its past be¬
havior. For example, in the seven
months after the outbreak of Ihe
plicated by the
fronts
the
At
comparison
rough
should
administered.1
period
absence of the
on
when
It is
rcrnrrL
Market nriee* flkn hnve
administered
started in May 1955.
the
of
the price.
concentration.
ed varyin§ changes. Six groups of
keep m mind that
pricing
prcdominates in our economy. About 90%
of the wholesale price index and
practically all
retail prices are
wages
subject
to supply-demand, and (3) administered wages, in excess of
productivity, helps explain paradox of declining raw material
prices and finished goods price inflation.
-''.'/Viiv
1
on s
one^f/hem
no
way aiirtion
a
to
We
CO.Ilditi
under
twn-wav
as:
prices have not produced huge profits since they
cigarettes;
fertilizers;
lumber), data are available for individual
Conversely, „■* the
administered products in the BLS index, howprices which have risen most were ever, neither in coverage nor in
those most affected by the boom method af classification do the
technically describe prices (e.g., machinery, and equipment), price data match the data for
determine
can
analysis of adminis¬
which produces such
(1) though 90% of all wholesale prices and
practically all retail prices are administered, there is no signifi¬
cant
relationship between administered prices and price
changes nor differences in prices of products subject to high
as
against low concentration of control; (2) administered
administered
prices and
observations
.
,
Ynd/eUer/that
and growing
rise in price level.
a
wage
,
determined
inflation continues, Professor
profit margins
concludes,
describe
to
wages
rates.
which
Backman
Thursday, November 28,1957
by administrative action and then
held unchanged for some longer
or shorter
period of time. They
are contrasted with market prices,
Responsible for Price Inflation?
Professor of Economics, New York
...
prices will show that in most in- Report 5 These data, cover 1,023
stances their,, products have failed classes of product,-shipments and
were
based on the .1954 Census
Administered prices are usually, to participate, fully, in the recent
described as those which are set boom
(e.g.,.textiles;., appliances;" of Manuiactures. Wholesale price
istered
Aie Administered Prices or
T/ie Commercial and Financial Chronicle
All
price data that appeared
usually records only small changes
year to year/Large supplies;
comparable with
therefore tenddo resultdn declin-
pried series having the greatest .;
weight was used to represent the
uct class
short supplies
r
price
was
£ensus prod¬
a
examined.
for
movement
Then the
all
of
the "
products/ recent ve'u? product dass.6 However; if the
V
y
'.
price * index with the
greatest
fSpjv?, il
3wp U?eSu
weight didn't account for at least
^se agnculturalj Products have 7 0.01 %. of the total wholesale price
^
H
index, the/ comparison■ was
farm
f
;?
.
„
>
ma'
A
no^ X
:
^ftf?*.! ?
used J
?/P" ff'X '/
X;
/Prices behavior % is /more ade-;
quately; explained by these reactions, to supply-demand condi-
is
It
prices
that
have had
may
behaviors
possible
a
other ;
different
If time
had'permitted, 1
therefore, it would have/been: mojre J.
desirable to prepare weighted in- Y
dexes of all the prices of productsX
t10n? than tot the method of price
determination—'.whether. market
included in a Census category in¬
the past is taking place.
groups of prices actually; behave/ or administered. The .point; is well/
of less tnan "normal" increases in
If various administered prices can'/illustrated by, the behavior of.cop-i stead of using only the most im¬
(b) The Comprehensive Whole¬
money supply (currency plus de¬
behave
differently
during * any per/dead/and zinc^ prices. Fftom«r portant-price. -J
sale Price Index: From May 1955
mand deposits) rather than one
Because / of
given period—and they do have v June
1955 - to- mid-1956, these
lack of available X
to August 1957 the comprehensive
of larger expansion.
data and
difficulty in matching;
wholesale price index (more than widely diverse behavior — then Prices rose sharply under the im-
been
Perhaps
is
type
of
the
of
one
difficulties
our
popular tendency to
ciate the term
asso¬
inflation with
any
not
products
in
August
illustration.
The
a
familiar
factors
con¬
tributing to
a rise in the price in¬
dexes must be carefully examined
this point in mind.
with
,
1957
October
the
fact
The
117.5
than
other
forces
or
administration
of
index
The
erately
has
from
117.5 at the
declined
in
118.3
mod¬
August
to
beginning of October
1957.
The
nent
nonfarrn
nonfood
(industrial
compo¬
wholesale
price
/>• t:
prices) has fol¬
pattern: 115.5 in
are
of
the
changes
in
during
a
Illustrations include the
prices.2
fniin^rincx-
hurt by
is not popular with
large numbers of persons who are
it. Accordingly, there is
May 1955, 124.7 in December 1956,
125.9 in August 1957
and 125.5
a
early in October.
find only a
declined
1
tendency for each group in our
economy to point the finger at
other groups in order to evade
responsibility for the advance in
prices. The recent rise in prices
has
been
.labor,
industry',
on
government,
on
the
on
blamed
tight
and
with
two
evaluating
suggested
tered
prices
even
policy. In this
money
paper, we are concerned
ily
on
role
of
adminis¬
causes:
and
primar¬
the
administered
(c) The Consumer Price Index:
Much
dex.
bility, this index
49
the
price changes which have
The
changes
are
this
in
three
particularly pertinent
material
sale
prices,
prices.
(a)
sensitive
prices, (b) whole¬
and
(c)
consumer
then to
amazing developments for
period of inflation is the fact
that the sensitve price index of 22
raw materials
compiled
daily by
U.
S.
Bureau
has
tistics
failed
period.
of
Labor
rise
fact,
In
to
it
clined. This index
was
49
1955.
—
100)
later it
in
was
was
88.2.
84.9
or
*An
in
in August
121.0
1957
as
It
1957; the
in
raw
material
cult
to
the
wholesale
the
decline
It
this
is
in
diffi¬
pattern
of
May
90.4 and
Sta¬
during
has
89.2
de¬
(1947-
A
year
in May 1957
Currently, the index
about
4.8%
lower
address
than
by Dr. Backman before
ihe Society of Business
Advisory Profes¬
sions, Inc., N»w York University Club,
New York City.
12
declined,
three
were
unchanged, 12 rose loss than 3% and
10
than
more
1955
15%
June
and
administered
unchanged
0f
'to
be
or
between June
1957.
Among the
prices which were
declined were: ce-
inflexible
recession
parently,
the
An examination of the 78 groups
term
in
inflation
to
use
describe
of the
events
1957.
It
is
against
these
changes
in
and
in
a
period
rise
to
more
period of boom.
a
trial
impact of indus¬
policy and adminis¬
price
tered wages must be measured.
that
the
greater
to
are
concentration
the
price.
Debate on this issue
extensive during the '30s. But
the ; comprehensive
research* of
Crowder and Throp, Alfred Neal
and2 others
effectively
showed
there was no significant relationwas
its
prices
well
broadest
embraces
as
have
wage
the term
rates
as
goods. Some
used
the
term
administered prices to cover both
prices and wages—and then have
managed to limit their illustra¬
tions of price administration al¬
most
50
entirely to commodity prices.
that
subject
my
to
which such
will
remarks will not be
the misunderstanding
an
confine
services and
approach creates, I
the
tered prices to
term
adminis¬
prices of goods and
use
and-the
declined
changed
sense,
the prices of
economists
between
fruits
which*
Administered Prices
In
the term admin¬
of
control, the more effective the administration, and the less flexible
ship between concentration
price inflexibility.4
tile products, and mixed fertilizer.
The groups of administered prices
the
of
or
accounted
weight
of
were
for
the
un-
17.1 /o
of
than
more
15%
had
a
What has
combined
An
tlies
the
of
Indus-
administered
———
Prices,
pp.
Jules
Backman,
Administered
York City, Aug. 15, 1957,
New
9-11.
2 For
the
detailed
breakdown
Backman, "Administered Prices
flation," The Business Record,
1957,
Board,
National
p.
481.
Industrial
control
in
the
recent
Friedman
see
Jules
and
In-
October
Conference
*
Y."
r
'■
>"
'
Group
•s,
33
.
No. of
Census
Matched
;
gories
t-
,
Y
Gate-
.
parisons?
Primary. metals
Com-?
42
26,
'
30
74
52
132
' (34J-„
24
23
4
335
Total
136
3 For example,
announced
that
1 his
on
Oct. 15, 1957, it
lead
was
the
prices
were
first
change
was
being
since
11,
uJSKFmJJSS Z&?iZSZJ?
National
Economic
Committee,
Washing-
D. C., 1941; Alfred
Neal, Industrial Concentration and Price Inflexibility,
American
Council
on
Public
Affairs,
Washington,
D.
C.,
1942;
Rufus
S.
Tucker, "Concentration and Competition,"
The Journal of Marketing, April
1940,
Ernest
M.
Doblin,
"Some
Aspects
of
Price
nomic
there
Flexibility," The Review of
Statistics, November 1940.
Eco-
in¬
obvious
are
procedure,
has
been noted, the results probably
give an approximate picture of
the
relationship
between
price
changes and the degree of con¬
centration.
The
as
data
basic
are
reproduced in Appendix Table I.
A scatter chart of the table data
suggests there
was no relationship
the price change from
1955 to May 1957 and the
degree of concentration for these
live
groups
of products.
Large
price rises are shown for products
for which concentration was small
between
May
as
well
is
it
high.
tor
as
those
for which
Table I summarizes the
data./ For
example, prices rose
Continued
5 Jesse
American
J.
Friedman,
Industry,
committee
on
a
on
page
22
Concentration
In
Report of the Sub¬
Antitrust
and
Monopjol^ to
on
The Judiciary,
ngress, 1st S"*«i-*i, 1957.
Department of Labor, Bu¬
reau
of Labor Statistics, Relative Import ,*
tance of Individual Commodities, Decem¬
The
Senate
Committee
Eifhty-Fifth C
6 See
ber
U.
S.
1954, issued
7 If
we
weight
ton,
j
1 See
of
1957, a period
of more than
four months.
See The Wall Street Jourr
rial. Oct. 15, 1957, p, 19.
Industries
examination
relationship
concentration
available
June
With declining
the
magnitude of the price
rises since the Spring of
1955?
Data showing the proportion of
shipments accounted for by the
four largest firms have been made
reduced.
weight of 21.4%.
Examines
been
and
wholesale
price index; those Which advanced
'
*
So. of
Ap-
believe
we
real and bakery products, cigarettes, household appliances, silk
products, other chemical and al-
products, canned and frozen
and
vegetables,
lumber,
electricity, man made fiber tex-
»*'
firmities in this
lied
price behavior with the
"
,
While
Sometimes,
the
argument
is
that high concentration of
over
supply
results
in
highly administered prices which
tend
3.3%.
«' '•'/
■
'
Control and
made
sharply in
ber prices declined
-~mi
i
-
Preliminary Results
of
Frice Changes
prices
roofing
of administered prices reveals that
prices.
reconcile
asphalt
7.5%.
categories. The num¬
comparisons in each
follows:
■
:
;
ber of usable
non-
control
Coal prices rose 22.6% while lum-
and
compared with the rel¬
and
fell
,
prices.
Concentration
prices
17.9% while plywood prices
rose
(1947-
1956.
December
rise has been, 5.6%.
the
this
114.6
was
February
118.0
Sensitive Price Index: One
(a)
is
to
of sta¬
years
prices that the
Reviews Various Price Indexes
the
in
100)
index
connection:
it
=
rose
stability
in
a
several
price
indexes
Of
After
products
unchanged.
were
ative
occurred.
cotton
Prepared
in
areas, it should be
review the magnitude
while
month in the Consumer Price In¬
analyzing developments
to
1.1%.
Prices of wool products rose 5.7%
public agitation has
two
these
useful
raw
the
Retail prices have risen by 2.5%
Before
of
of
ferrous metals
Prices of electrical
resulted from the rise month after
wages.
in
Here again, we
nominal rise in 1957.
10110wing.
these
r
compared
v
-Sf™'„ei„ S
have taken place in
machinery and
equipment
rose
17.2%
while
prices of household appliance
similar
a
335
136
as
34 Fabricated ^ metal prods.
I?
35 Machinery, (expect ejec.)
®s„'''fl/w''-1?- 3(3-Blcctricai niachiiieryl;Sl'
n.has-not prevented-the ex- 37 Transportation equip.
June 1955 to June 1957 reveals the
widely differing behavior of difgroups
of
administered
comparisons
with
product classes listed in the
Census
, five
this,, period
prices
fcrent
series,
derived
group was as
£i/es-,have bec". adm'<!'s,awther«.of,ttM?
}
two
were
overtaken demand.-It t should.
in-
index
subgroups of which 78
administered. An examination
lowed
Inflation
the
must
the
be
118 3
...
..
1957.
3,
100i
force
sdVne
eludes 92
to
response
1955
December 1956
The
rises and declines in the prices of
changes in supplies is
pie illustration of this point.
11947-49-
May
ated with the term inflation.
farm
109.9
11(3.3
Most of this rise had occurred by
the end of 1956.
price level. Prices may
for many reasons which
considered to be associ¬
change
Pact of large and urgent demand,
Since June 1956, and particularly
primary determinants of in recent, months,, these nonferthat behavior. The experience of r°us metals prices have declined,
the past two years provides am- sharply as, supply has- more than >
2,000 commodities) rose by 7.6%.
rise in Ihe
are
examine how individual prices or-
period
a
of
be
wuld
boiler
August 1955.
products that
included
over
.005%,
included:
had
a
the
jack
following
plane,
steam
hardening furnaces, power
garden tractor, and milking ma¬
(coal),
sprayer,
chine.
,
-j
8 For
example, from May 1955 to May
the price of steel pipe line carbon
increased
by 29.6%.
This product has
a
weight of .171 in the index. However,
during
the
same
period, the price of
steel pipe, black, carbon (weight of .102
in
the
index)
advanced
by 26.0%
and1957,
of steel pipe, galvanized, carbon
(weight of .057 in the index) rose by
21.9%. The price of steel n3o° line car¬
bon was used because it carried the larg-vthe price
est
weight of the
weighted average
rise
would
be
three
were
smaller.
products.
used the
If a
price
Volume
186
Number
5694
The Commercial and Financial Chronicle
...
(2327)
economists
Some
predict
that
sales will rise at least
during that period. I am in¬
formed that the Petroleum In¬
federal Highway Program
60%
'
By HON. BERTRAM D. TALLAMY*
>
*
Federal Highway Administrator, Bureau of Public Roads
h;
*
\
Mr. Tall amy points out Federal-aid highway act of 1956 has
■'A given cities the greatest opportunity in history to solve their
Z traffic problems., Mr. Tallamy describes the manifold goal
-»r.
-
;
allowing us to catch up with the motor. vehiclemanu¬
facturer, petroleum producer, and our defense needs, and as a>-Y"
as one
K
bold attack
Traffic deaths and accidents, congestion and
as
;
economic
wasteland municipal problems.' States 2,576 miles
Yi, of 41,000 mile interstate system is under way, or about to get
j
under way, at a cost of $1.3 billion, and more than 30,000
miles of improved lesser roads at a cost of $1.7 billion. YYy'Y-'"''
i
I
have
been
asked
discuss
to
highway program and
its relationship to petroleum in¬
dustry. It is a close relationship
fie"
indeed and
problem
outgrowth
another
take
be¬
one
tween the
tor
transport
pet.ro-i
fronted
In
,
indus-
which
'
known
as
II
to
It
us."
built
we
solve
we
a
that
,y
new
in
an
co m modate;»the
:
the
ership and'
in the
Yet
Siamese twins
use
con¬
after the War
miles of roads
^increasing.
has been astounding. They
generate not only traffic, but new
pact
road networks is not
result
should
healthy
ac-
effect
of motor vehicles. Y This
job
nation. to
a
Y
really
continuing
the general
"
economy.
own¬
be
upon
of
the
motor
is
age
the
well
In New York the Thruway has
attracted more than $400 million
in
new
industry and commercial
enterprises. Land values in some
areas^
along the route have risen
from
$600 an acre a few years
to $6,000 an acre today, and
ago
in
some
cases
acre.
When
as
near
high
the
as
the
inter¬
$23,000
an
Baltimore-Wash¬
ington
Expressway
was
built,
some: land was acquired for $250
period we pro¬
under way. The program has not,
to $300-an acre. Today adjacent
200,00.0 miles if placed bumper-', of, course, reached high momen¬
property sells for $3,500 an acre.
I ,d o n ' t see to-bumper.. The inevitable result tum, because it takes 20 to 24
w
Land along the Eastshore Freeway
how one could
was ..that
Bertram D. Tallamy
our
traffic,.1 death and months from the time a project near
.Oakland, Calif, has risen in
until
it
is
placed
accident tolls became a .national is conceived
get. along"
value from $500 to as much as
without the other, for each is the tragedy, with about 40,000 persons under contract. Even after the
work is started, it is many months $40,000 an acre.
other's. best customer. The motor killed,and 1,350,000 injured each
These are some of the implica¬
before the road is ready to open
vehicle not only consumes petro- year. .More than that, we were
tions of the Federal highway pro¬
as a complete facility.
leum- but transports a good share suffering \ at ,r least
$5 , billion ' a
The
safety
factor
alone
But despite this time lag, as of gram.
of it as well.
year in economic loss due to acwould
justify
the undertaking,
Nov.
I
construction
work
was
This
alliance and mutual de- cidents.
'
;
without considering the all-per¬
under way or about to get under
pendence has been a profitable
Time was running out on us to
vasive role of the motor vehicle
one for the industries
as well
as
do something about the problem, way on 2,576 miles of the Inter¬
in
promoting economic
growth
state System at a total cost of $1.3
a-keystone of the progress and Today we have 67,000,000 motor
and fostering community benefits.
billion. On the primary, secondary
prosperity of the United States, vehicles on about 3,300,000 miles
and urban systems—the ABC netThere are plenty of persons alive of roads and streets.
More than
National Defense Aid
works—more than 30,000 miles of
today who remember this country 67% of all consumer units in the
Finally, but - certainly not in
before the happy meeting of these country own one automobile and improvements had been completed
the order
of importance, is the
at a total cost of $1.7 billion. The
two
great
industries.
Isolation, 7% own two or more. By 1975 we
national
defense
consideration.
program
is a balanced one, not
drudgery and loneliness were an expect to have 100,000,000 cars,
is
defense - conscious
weighted
toward
the Interstate Everyone
accepted part of the rural way trucks and buses on the go in
these days and everyone has good
System nor toward the ABC sys¬
of life and city living for millions place
of today's 65,000,000.
reason to
be. The construction of
tems.
meant
working
and
living
in
the 41,000 mile Interstate System
Bold Attack on Problems
tightly packed neighborhoods,
41,000 Mile System
will permit industry to decentral¬
With fresh air and 'open spaces
to
the
Against that background PresiThe new highway program is a ize
point
where
the
of ;the Ameri¬
can
economy.
same
duced enough-new ones to stretch
Y
r
,
Searight, Ahalt &
O'Connor Formed
"
changes, to
,
fitting
and industrial growth
along their routes, with a conse¬
quent rise in property values.
residential
a
crash,
but a sustained, calcu¬
lated undertaking that will carry
on " at
a
reasonably high level
throughout the construction
period. There are no peaks and
valleys in the schedule and the
traffic
attempt to
standards and their im¬
1
program
Yyy
,■
years
100,000
streets
the
suddenly
Economic Effect
making is
that the demands of the highway
program
on
the
industry
are
predictable. Construction of the
didn't
see
Y Healthy
Another point worth
■'"■
had
we
hands.
which
the .10
and
sometimes
are
that
vision-
much
wouldnever
and the
leum
find
our
on
problems
mo¬
tries,
to
'':"YY
WorldYWar
after
up
•
merely adding more miles of high¬
ways on the old model and scale
relationship—
the
Then
of
close
^ Y
"
woke
an
:
adequate to handle the traf-
were
the Federal
plexing municipal problems. Some urban areas. All of the Interstate1
of, our largest cities were con¬ routes, I might add, were selected
cerned, and rightly so, that poorly in consultation with the Depart¬
managed traffic was destroying ment of Defense.
stitute estimates that sales will their
desirability as places to live
I
have
tried
to
give you ia
rise from the 1955 level of about and work. The result had
already
50 billion gallons to around
75 begun to express itself in declin¬ capsule review of some of the im¬
plications of the Federal highway
billion by 1964.
ing municipal revenue. The Fed¬
The
average
family
car
is eral-aid highway act of 1956 has program. What we are really try¬
ing to do is to catch up with the
driven an average 9,400 miles a now
given cities the greatest op¬
motor vehicle manufacturers and
year, but with the safer, easier, portunity in history to solve their
the petroleum producers, as well
less congested driving on the new traffic
problems and, at the same
as to shore up our defenses against
expressways, it is expected that time, advance redevelopment plans
possible aggression.
this annual average will be in¬ to fit in with the new
;
city arterial
The degree of success we have
creased by 2,000 or 3,000 miles a routes.
in accomplishing this twin goal
year. I'm sure I don't need to tell
From the viewpoint of general
will largely determine the trend
this audience anything about in¬
effect on the economy we have
of our way of life. The completion
duced
or
generated traffic, but
ample evidence > of» the value of
of the highway program in the
obviously the availability of ade¬ modern limited access
express¬
prescribed period is a challenge to
quate
highways
will
entice
a
ways. We now have several thou¬
all of us but I am confident that,
tremendous
number
of
motor
sand miles of free and toll roads
vehicles out of the garages.
working together, we are equal
in operation that measure up to
to the challenge.
interstate
gasoline
And Petroleum Iadustzy
|
7
Searight, Ahalt & O'Connor, Inc.
has been formed
to continue the
investment business of George A.
Searight. Officers are Mr. Sea¬
right, President; Henry C. Ahalt,
Vice-President, and William O'¬
Connor, Secretary and Treasurer.
Mr. Searight has been active in
the
investment
York
from
business
offices
at
115
in
New
Broad¬
The new firm also has: a
Washington office at 1024 Ver¬
mont Avenue, N. W.
way. /
NASD District No. 7
Elects Committeemen
Elected
as
W.
.
of NASD's
members
District No. 7
were
the following:
Guy Redman, partner, A. G.
& Sons, St. Louis; Du-
Edwards
mont G.
Dempsey, partner, New-
hard, Cook & Co., St. Louis; and
R. N.
Dillingham, partner, Dabbs
Sullivan
,
Co., Little Rock, Ark.
.
.
nierely something to be dreamed of.
Y Only about 55 years ago, all the
hard-paved roads in the United
-
States
would
dent
-
reach
only
from
New York City to Boston. Farms
.
not
-
served
virtually
and
the
84th
tional System of Interstate and
outside-Defense Highways and the build-
bold
attack,
deaths
and
and
not only on traffic
accidents, congestion
economic
waste
but
on
per¬
factories—and the bomb or missile
targets—will be out in the country
the employees will be in the
and
for
crops
about
farm.
products
go
least
part
of the
values
*ancl Yfarm
90%
all; ing
of
by
This announcement is neither
an
that
acre
$5
could
.because, it
be
was
velopment
came
countless
truck
industries
The
Y
Interstate1 SystemVwilllink
the
growth
<
of
of these securities.
November 26, 1957
■
The
countless
Common Stock
construction
of
the
Inter-
(Par Value $1 per Share)
System and the rebuilding
of the so-called ABC roads in the
next 15 or 16 years poses a tremendous challenge to the engineers, the contractors and the suppliers of materials. Take a look
,..K
Price
$8.50 Per Share
/This
and 'streets.
-
was ran
Produetibn.
:
<r-'
ever-^qwlng'circle.
of
and'
more
more,
roadk.
At the same time,
better roads whetted the desire of
better
•£ the
people
This
was
to
fine
for
and
about
40
we reaped the benefits Gf
ever-improving automobiles and
fuels • as well as highways that
years
,
,
,
,
,
-
ra^hon- gallons -of paint.
legally offer
Aside
Petroleum products, all of these
^es are significant to your m-
may
be obtained from any of the underwriters,
these securities under applicable
underwriters
securities laws.
Hemphill, Noyes
Paine, Webber, Jackson & Curtis
Co.
Francis I. duPont & Co.
dustry will be many of the mabecause
terials
4nr>i
n
1
n
uri
I I
hrv
hrnn rrht
tr\
thn
i
Ah
brought to the job
sites by motor vehicle. *
It is
37th. annual
may
dire<jt consumption of
°m
*An address
by Mr. Tallamy before the
meeting of the . American
Petroleum Institute,
Chicago, 111., Nov.
11-14, 1957.
Copies of the Prospectus
including the undersigned, only by persons to whom the
million tons of steel, 1.5 mil|n barrels' of cement, 130 million
Hf.
bituminous materials, 10
"Hjjj011 ton,st of aggregates ynd 75
automobiles.
own"
It will also take about
products.
YY'r
"
motor vehicles led to demands for
„
any
Ketchum 8b Co. Inc.
state
,
J
solicitation of offers to buy
nor a
210,000 Shares
shelter.
connected1
other enterprises,
happy .state of affairs oc-^at some of the basic construction
cur red, not only because of techrequirements.
These are Tough
nical advances in the petroleum estimates, of course, but we ex: and motor vehicle
industries, but pect that the expanded highway
"because together they forced the program
will require : about 13
•* construction' of
all-weather roads billion .gallons
of
petroleum
>
Gas Co.
made only by the Prospectus.
bought
,
and
with Southern Natural
unused
with,
or
dependent
on,
motor
transport — gas stations, garages,
trucking and taxi.firms, automobile and accessory sales, automobile finance and insurance, motels
.
Mayes
Ala.—James H.
White, Jr. has become associated
with Hendrix & Mayes, Inc., First
National Building, as Vice-Presi¬
dent.
Mr. White was formerly
jumped "all 48 states and 90% of the prin-
have
'will be a limited access system
„and there will be no commercial
farm
land
eventually sold
for establishments immediately adja$5-000 or more when it became a''cent-to it. That means, of course,
suburban lot or a desirable .in- that the traveler must leave the
dystrial site. Along with this de- System to get food, gasoline or
some
for
offer to sell
The offering is
rebuilding of hundreds of
at -thousands of miles of other routes,
market
to
way
or
astoundingly since the advent of cipal cities of the h nation • and
tire gasoline .-age.
A-lot of us connect' with- the highway netknow of, instances where a lone- r works of Canada - and '-Mexico. It
-
Of Hendrix &
BIRMINGHAM,
by railroads produced
no
markets. "Now
.
Eisenhower
Congress enacted a "grand plan"
highway program, the greatest in
history. It involves the construction of 41,000 miles of the Na-
James White Jr. V.-
of
a
safe prediction that sales
petroleum
rocket
products
during the
will
next 15
sky¬
years.
Goodbody & Co.
Hallgarten & Co.
E. F. Hutton & Company
8
(2328)
The Commercial and Financial Chronicle
...
Thursday, November 28,1957
Warrants
as Long Term Speculations—Circular—Joseph Faroll
Co., 29 Broadway, New York 6, N. Y.
&
Dealer-Broker Investment
to send
mentioned
interested parties the
will
be
•
•
COMING
•
EVENTS
Aetna Standard Engineering
Company — Bulletin — De Witt
Conklin Organization, 120 Broadway, New York 5, N. Y.
Recommendations & Literature
It is understood that the1 firms
.
.
American Agricultural Chemical Comany
Steel
American
pleased
following literature:
Investment Cield
In
Analysis — Laird,
Bissell & Meeds, 120 Broadway, New York 5, N. Y.
—
Foundries—Circular—Bache
New York 5, N. Y. Also in the
data on Aibha Portland Cement.
Street,
&
Co., 36
-
■
-
:
T
are
-
>.
Dec. 1-6, 1957
Wall
circular
same
Fla.)
..
(Hollywood Bead,
.;
..
Investaient Bankers Association
*
-
-
Annual
Convention
at
Holly-
•
Atchison, Topeka
Atomic Letter (No. S2>—Discusses Atomic Development Fund's
Hammill
participation in missiles and rockets—contains text of U. S.¬
British joint statement
on
fusion and comments
Chicago and Harshaw Chemical Company—Atomic Develop¬
Inc., 1033 Thirtieth Street, N. W., Wash¬
ington 7, D. C. "• •' ' • V '^ \
]';■[(:
View —Monthly
investment letter
—
Burjnham
memoranda
Dravo
on
—
Corp., Hooker Electro¬
r
v
"
-
Co.,
Also avail¬
Market—Appraisal—Ross, Knowles & Co.
Street, West, Toronto 1, Ont., Canada.
York
Corn
Ltd.,
Bond
-
1
Corn
Industry—Study
with
Wall
Buffalo
Street, New
particular
Products Refining Company, Penick &
American Maize Products Co.
—
N. Y.
Harris,
Upham
and
National
reference
"V_ »'_Y.
Company—Thomson
&
McKinnon,
11
Company, 231 South
Stareli Products
Wall
Current
information
—
Consolidated
Company of New York, Inc., Ill Broadway, New York 7,
Investors
Beacon"—Nomura Securities Co.,
61 Broadway, New York 6, N. Y.
Also in the
Federal
are
"stock"
Companies—Comparative figures on 20 leading
Paradise Securities Company, 9477
a
discussion of Stocks for Income with
Strength—Harris, Upham & Co., 120 Broadway,
5, N. Y.
New York
Over-the-Counter Index—Folder snowing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
Averages, both as to
yield and market performance over a ,13-year period —
National Quotation Bureau, Inc., 46 Front
Street, New York
List
Property Tax Free Long
of
Dividend Paying
issues-MVIoore, Leonard & Lynch, Union Trust
Building, Pittsburgh 19, Pa.
>
Science
Speculations
—
Bulletin
Cenco Corporation, Norbule
with particular
reference to
Stran Steel
ucts for
Products—Catalog giving information
in institutional
use
industrial
and
on
all prod¬
commercial
con-*
of
the
Association
Mortgage
Analysis
—
C.
—
Annual
Corporation—Analysis—Petersen
Street, Houston 2, Texas.
Laboratories,
Inc.
Inc.,
Joins
l
Beacon
With
Harris, Upham
(Special to The Financial Chronicle)
Building,
WINSTON
Shoe
McDermott
P.
&
John N.
—
with Saunders,
Terminal
Tower
now
&
Co.,
Building, members of the Midwest
Stock Exchange. He was formerly
with H. L. Emerson & Co., Inc.
Company,
&
Saunders, Stiver
CLEVELAND, Ohio
Stiver
SALEM,
C.
N.
—
Bahnson Gray is now with Harris,
Upham & Co., Pepper Building.
Joins
Ross, Borton
(Special to The Financial Chronicle)
Company—Analysis—Auehincloss, Parker & Redpath, 52 Wall Street, New York 5, N. Y.
CLEVELAND, Ohio—George
Herman
Co.,
is
affiliated
now
K.;
with
Ross, Borton & Co., Inc., The 1010
Euclid Building.
Nationwide Corporation—Analysis—Robert H. Huff & Co., 210
West Seventh Street, Los Angeles 14, Calif.
With Earie C. May
Northwest
Production—Report—Western Securities Corp., 1
Exchange Place, Jersey City 2, N. J. Also available are re¬
ports on Three States Natural Gas, Delhi Taylor Oil, and
Big Piney Oil & Gas.
(
Special to The Financial Chronicle)
PORTLAND, Oreg. — Cyril H.
May has jointed the staff of Earle
C. May, 811 Southwest Sixth Ave.
Parke, Davis & Company,—Analysis—Blair & Co., Incorporated,
20 Broad
at
Special to The Financial Chronicle)
Darrow, Jr. is
—
Corp.—Analysis—Peter
42 Broadway, New York 4, N. Y.
area
Convention
Company, Inc., 1 Wall Street, New York 5, N. Y.
Lorillard
Melville
(Boca. Raton, Fla.)
the Boca Raton Club.
F.
Analysis in current issue of
"Business & Financial Digest"—Loewi & Co., Incorporated,
225 East Mason Street, Milwaukee 2, Wis. Also in the same
issue is an analysis ol Emliart Manufacturing Company.
P.
1959
National Security Traders Asso¬
ciation
County, Kansas Water District No. 1 Revenue Bonds
Lakeside
in the
Growing West—Booklet describing re¬
served—Dept. K, Utah Power & Light
Co., Box 899, Salt Lake City 10, Utah.
sources
the Broadmoor.
Valley National Bank of Phoenix.
—Circular—Davidson-Vink-Sadler,
Wichita 2, Kansas. v
V
(Colorado
National Security Traders Asso¬
ciation Annual Convention at
120 Broadway, New York 5, N. Y.
Johnston
structiun—Stran-Steel Corporation, Detroit 29, Mich.
Treasure Chest
—
Sulphur
3511 Main
.
Sept. 29-Oct. 3, 1958
Springs, Colo.)
Corporation—Analysis—.New York Hanseatic Corpo¬
ration,
Gulf
meeting
Richelieu, Murray Bay,
Nov. 2-5,
National
Grinnell
Corporation—j. R. Williston &
Co., 115 Broadway, New York 6, N. Y.
Manoir
Quebec.
a
Development Bank for Puerto Rico—Quarterly
report for period ended Sept. 30, 1957—Government Devel¬
opment Bank of Puerto Rico, San Juan, P. R.
Stocks—
195
Corporation
annual
of Canada annual convention at
Government
4, N. Y.
Personal
•
Investment Dealers' Association
Street, Chicago 4, 111.
Higginson
Corporation, 2u Broad Street, New York 5, N. Y.
companies
Defensive
Electrodynamics
C'hilds and
Brighton Way, Beverly Hills, Calif.
Market Review—Wun
The Illinois
General Dynamics Corporation—Memorandum—Lee
discussions of the Shipbuilding and Gasochemical Industries.
Life Insurance
Chicago
June 9-12, 1958 (Canada)
—
Corporation—-Analysis—Cartwright & Parmelee,
Street, New York 5, N. Y.
70 Pine
Ltd.,
issue
same
La Salle
York 5, N. Y.
Memorandum
Cott Beverage
New York.
Japan's International Accounts—Discussion in current issue of
"Nomura's
of
the Shamrock Hotel.
at
Analysis — Dean
Witter & Co., 14 Wall Street, New York 5, N. Y. Also avail¬
able are analyses of Ampex Corporation, Union Oil Company
Street, New
Yamaichi Securities
—
Association
ers
Co., 1 Wall Street, New York 5, N. Y. Also available is
memorandum on Westinghouse Electric Co.
of California and
—
Club
(Houston, Tex.)
Texas Group Investment Bank¬
H. E. Herrman &
—
&
York 5, N. Y.
Japanese Stocks
(Chicago. III.)
Traders
April 23-25, 1958
Chesapeake & Ohio Railway Co.—Memorandum—A. M. Kidder
5,
Iligh Yield Common Stocks—Bulletin with particular reference
to Douglas Aircraft Co., W. T. Grant Company, and Swift
&
Southern
;
Sheraton Hotel.
.•
Analysis
—
Company, 52 Wall Street, New
Ford. Ltd., Inc.,
&
Eclipse Corporation
Champlin Oil & Refining Co.
to
Co., 120 Broadway. New York
available is an analysis ot Campbell Soup.
Also
the
at
; :
_
annual Midwinter Dinner at the
Drilling Company Inc. -4- Analysis—-Rowles,
Co., Bank of the Southwest Building, Houston 2,
Texas.
25
5, N. Y.
Refining
Inc.
Ltd.,
'
Bartle
Brewster
Winston &
Bullock,
dinner
v
,
Jan. 27, 1958
Adelaide
Copper—Circular—Calvin
winter
~Hotel.
"VJ
.
Company, 15 Broad Street, New York 5, N. Y.
1
Baltimore Security Traders As¬
sociation 23rd
annual
mid-
-
Edison—Data—du Pont Homsey & Company, 31 Milk
Street, Boston 9, Mass. Also in the same circular are data
on Corn Products Relining and Tedders Quigan.
and
;
Jan. 17, 1958 (Baltimore, Md.)
Boston
able is current Foreign Letter.
Canadian
wood Beach HoteL
Shearson,
Street, New York 5, N; Y.' Also
Wall
14
Memorandum
—
Hills Power & Light—Analysis—A. G. Becker &
Incorporated, 60 Broadway, New York 4, N; Y.
Insurance Stocks—Circular—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
Burnham
Fe
Black
&
120
Santa
chemical Co., Lily Tulip Corp.
ment Securities Co.
Bank
Co.,
available are
Nuclear
on
&
&
Street, New York 5, N. Y.
With Merrill Lynch
Pepsi-Cola General Bottlers Inc.—Report-—Link, Gorman, Peck
'
&
tion,
376
Southern
South La
Suburban
510
Dynamic Corp. Amer.
Aerovox Corp.
Airborne Instr.
Preferred
Power—Analysis—William R. Staats & Co.,
Spring Street, Los Angeles 14, Calif.
Salle Street, Chicago 3,
Gas
South
Mallinckrodt Chem.
Aircraft Radio
Elco Corp.
AMP, Inc.
Electronic Assoc.
Ampex Corp.
Epsco, Inc.
High Voltage Eng.
Hycon Mfg.
Johnson Service
Gas
Pipe
Line
Co.
—
United Insurance
Co.
of America—Memorandum—A.
Sprague Elec.
Brush Beryllium
Leeds &
Bumdy Corp.
Metals & Controls
.
Northrup
Mid Western Instr.
Tracerlab
& Co.,
Viclad
&
staff
Ling Electronics
Victoreen Instr.
Craig Systems
Ling Industries
Stout
STOCKTON,
Swenson
Northwest Production
Three States Natural Gas
Delhi-Taylor Oil
Colo.
Roberts and Ray J.
been added to the
umbine
1575
New
York
74 Trinity Place
—
HAnover
2-2400
Teletypes NY
6, N. Y.
1-376-377-378
has
Calif.
been
—
Leroy
added
First California
Two With
W.
Loran
to
the
Company
Williams have
Securities
staff
of
Col¬
Corporation,
Sherman.
Special Reports
on
Request
Western Securities
One
Exchange Place, Jersey City, N. J.
Telephone HEnderson
Open-end
2-1000
phone to N. Y. C. HA 2-0185
come
Colo.
—
Marlin
and
are
connected with Mountain
now
States
Dwight A. Knudson
Securities
Denver Club
affiliated
Corporation,
Building.
was
Mas-
Wiles have be¬
with
Corp.,
Massari
Columbine
1575 Sherman.
formerly with
Inc.
Corey-Nelson Adds
H.
Flowers
Colo.—Phillip
Oscar E.
Securities
(Special to The Financial Chronicle)
DENVER,
Corp.
DENVER,
sari and
Securities
Two With Mountain States
Columbine
(Special to The Financial Chronicle)
Mr.
Security Dealers Association
New York
the
Incorporated, 343 East Main St.
(Special to The Financial Chronicle)
Big Piney Oil & Gas
Members
to
Company,
Two With Columbine
Vocaline
Troster, Singer & Co.
added
With First California
staff of
Vitro Corp.
Liquidometer Corp.
Wis.—Robert S.
been
Marshall
(Soecial to The Financial Chronicle)
Co., 50 Broadway, New York 4, N. Y.
DENVER,
Collins Radio
Cramer Controls
King> Libaire,
The
of
765 North Water Street.
C. Allyn
Inc., 122 South La Salle Street, Chicago 3, 111.
Industries, Inc.—Study—Eisele &
has
Rummler
Memorandum-—Good-
Radiation Inc.
Beryllium Corp.
MILWAUKEE,
Spring Street, Los Angeles 13, Calif.
Perkin-Elmer
Baird Assoc.
(Special to The Financial Chronicle)
"
body & Co., 115 Broadway, New York 6, N. Y. Also available
is a memorandum on Union Oil & Gas Corp. of Louisiana.
Orradio Ind.
Astron Corp.
Marshall Co. Adds
111.
Service, Inc.—Report—Kidder, Peabody & Co.,
Transcontinental
Lithium Corp.
Machlett Labs.
Eastern Ind.
Hughes Organiza¬
Francisco 8, Calif.
Speer Carbon Co.—Memorandum—Dovle, O'Connor & Co., 135
We position and trade
Advance Ind.
Sutter Street, San
Nevada
"640 South
Electronic/Atomic Stocks
PORTLAND, Oreg. — John J.
Inskecp, Jr. has jointed the staff
of Merrill Lynch, Pierce, Fenner
& Beane, Wilcox Building.
Oil & Gas Company—Report—Lou
Reserve
Banks, Brokers, Dealers—
(Special to The Financial Chronicle)
Co., 208 South La Salle Street, Chicago 4, 111.
(Special to The Financial Chronicle)
DENVER,
Gibbons
staff
of
has
Colo.
been
—
Corey-Nelson
Co., 1575 Sherman.
Howard
added
to
Z.
the
Investment
Volume
185
Number 5694
.
.
.
The Commercial and Financial Chronicle
(2329)
paper and
Timber and Forest Products—
liner board. Today it is
estimated that 80% of everything
that
comes
into
your
homo is
Connecticut Brevities
either
completely
or
partially
or
packaged in Kraft
paper or board. Not only does this
include normal wrapping
paper,
shopping bags, and cartons of all
kinds and description, but such
An Investment in the Future
wrapped
By JAMES L. BUCKLEY*
!
Vice-President, Georgia-Pacific Corporation
A limitless future for the forest
unrelated
products industry is depicted
boards
by Mr. Buckley who does not hesitate to explain why he singles
oat timber as the "Green Gold
among our natural resources."
The integrated operator cites
study indicating plywood and
for
sees
no
reason
There
•.
Forest
four
are
Products
like to discuss.
factors
in
picture
They
I
this
would
(1) The
are:
Versality and Growth Factors of
half
that
most
undreamed
of 30 years ago.
ticularly those of
us,
par¬
who live in
us
the Northwest,
inclined
are
to think of
this country has remained
static at about 30 to 33 billion feet
board, an infant wood prod¬
uct, has increased from nothing to
vigorous young industry with a
productive capacity of about 300
MM sq. ft. annually.
a
"Forest Prod¬
new
product
keeps
multiply. ..
uses
a
va
J
Krvrwirl
/innnAUtr
than doubled and
billion
a
dollars
over
is
one-
in¬
now
in these two states in this
ranks
first
in
production of wood pulp
Oregon 12th in the nation.
and
Let's
trace
just one of these—a
with which we are all
New Integrated
let's
now
consider
factor —the
second
the
efficiency of
been
tremendous change in just
a
the past decade.
Only 10 years ago
the
three
principal components
making up the forest products
industries
lumber, panel prod¬
ucts, paper and pulp—were prac¬
tically, all divorced and isolated
—
product
familiar and which 20
nition of the necessity for greater
years ago was almost unknownutilization
of
the
tree
became
Fir plywood. In 1937 there were
more
pronounced,
the
inter¬
13 plants in Oregon and
Washing-1 dependence of these facilities one
ton manufacturing Fir plywood,
on
the other became increasingly
and the total production was 300
recognized as timber values grew,
MM'
per
year.
Today, largely and
today you are witnessing the
through research which has de¬
developmeint of the so-called inteveloped new glues and improved
grated units—the plywood plant
manufacturing techniques, as well
utilizing the high grade logs, the
as the recognition of the tremen¬
lumber
mill
utilizing
the
low
dous
efficiency of plywood in
grade and salvage logs, and the
building, there are 116 in ills turn¬
chips made from the refuse and
ing out nearly 5,500 MM' in 1957. waste
from these operations going
This
versatile " material,
which into the
pulp and paper mill and
originally was used only for the to
the
hardboard
and
particle
manufacture of doors, is now "the
board plant. This is efficiency at
wood of 1,000 uses."
Its growth its
utmost
and
the
disgraceful
potential was never better dem¬ sawmill burner which once con¬
ber,
but
we
treating
are
with
in¬
an
dustry of vast
proportion—
$8
an
billion
industry
ranks
that
#1
number
in
of
companies in
L.
James
Buckley
the
United
States;
number
#2
in
of
workers; #4 in total
salaries
paid, and #5 in - value
added by manufacturer.
We are
treating with an industry that no
longer consists of lumber as its
principal product, but of plywood,
and
paper
products, hardboard,
roofing
felt,
insulation
board, particle board, chemicals,
synthetic textiles, and so the list
lengthens.
paper
materials.
Sawdust is
industrial
alcohol
tein
is
and
molasses
for
human
also
cattle
food
a
for
source
of
synthetic
mixed
feed.
have developed
peans
with
Rohstoff,"
terial
from
meaning
which
thing."
Euro¬
high
pro¬
wood
and
can
"the
produce
ma¬
any¬
So efficient and practical
products
developed
these
are
from
the
trees
that
of
the
first
three fastest
growing industries in
America, two ' are derived from
timber—the plywood industry and
the paper and paper
when
the
gen¬
erally declined
15% to 20%, due
shrinkage in home building,
plywoods growth has continued
factory
in
America
sawmill and the first Amer¬
of tim¬
a
sumed
almost
75%
the
of
recog¬
.
the only mate¬
has
of
come
-
age
through this revolution in the
of wood.
Hardwood
pensive
fibre
combination
and
resin
—
of
has
wood
its value for low cost
industrial
and
board
is
immense
wide
and
veneer
is
form
made
now
quantities
in
use
furniture,
another
of wood fibre which
in
years
building uses has
widely recognized.
more
Insulation
by
grown
leaps and bounds in recent
as
use
index-
an
—
and
construction.
the
as
of
use
core
a
has
And
lumber
material
in
the furniture and fixture business.
i
■
,
Paper and Pulp
As
have witnessed the
we
of
plywood
United States
20
years,
a
and
have also
pulp
The
for
in
seen
industry
pace.
aging alone
the
increasing 20-fold in
we
terrific
in
con¬
grow
per
paper
for
the United
largely related to- the
industry and in the past
we have witnessed this
quite revolution from our forests
capita
being used almost exclusively
as
has increased in
lumber
as- tremendous
the
at
capita
by about 60%. The Company produces magnetic tape, the use of
°epend(rnt' competing companies!
ment6fore^uip" which has been increasing
„nl
ti
counting.
is derived from the
ing
the
names
storage, and
tainment applications.
of
four
cooperating companies:
Springfield Fire and Marine In¬
■
•'
Company, Phoenix Insur¬
Company, Aetna Insurance
Company, and National Fire In¬
ance
new
.
«
'
,
the
.
electronic
equipment.
d
t
a
The
processing
a
initial
personel
will consist of 24
persons from the
member
companies,
persons' also
seven
from
the
liaison
member
companies, and four full-time
en-
now
These integrated units and their
relative
recent
sawmill. Now in this 90-mile
circle
have
we
complete
a
inte¬
with
the
plywood
plants using the high grade logs,
Ihe sawmills using the salvage and
low grade logs, and the chips from
these operations sustaining a 300
ton
pulp and paper mill and a
large hardboard plant. This unit
is there permanently and will ex¬
pand. The growth from the eight
unit
grated
pack¬
billion
feet
States
within
a
of
timber
90-mile
we
radius
80,000 square foot building in
Norwalk, to be used to
J
own
1
»
A-
regulators and frequency changers
International Busi¬
Machines. The four member
use in such equipment as air¬
plane gun turrets and electronic
computers. The Company recently
merged with Beta Electric Cor¬
poration of New York, manufac¬
for
anticipate that SPAN
greatly improve the speed
of their accounting
accuracy
enter¬
«
hous? executive» sales and en^"
offices and a large part
of the Company's manufacturing
operations Sorensen, which was
founded nv 1943, employs some 400
p?rs.°S8 an<? 12 fhe largest producer
01 Af-,ar>d DC precision voltage
gineers from
and
#
South
surance
Company. The building
designed specifically to house
"
#
Sorensen and Company, Inc. has
opened and placed in operation its
surance
was
rapidly
Processing and ac- due pnmarily to various telemetry,
name of the buildinformation
The
operations.
turer of high voltage power equip¬
ment, and has established
Owens-Illinois Glass Company
^as exchanged its 50% ownership
of
common
stock of Plax
Swiss
a
subsidiary, Sorensen-Ardag.
*
Corpora-
■
ft
Dn
*
-
•
T
.
,
Bowes, Inc., Stamford,
Company for 325,000 shares of*ha«--introdtaced 3 new.automata
Monsanto common stock;
The -mail-handling device which autotion with
stock
of
Monsanto
Monsanto
Chemical
has
market
a
value of about $10.4
with
compares
million
paid
million, which
cash price of $8
a
in
1953
by
Owens-
Illinois for the stock of Plax.
The
remaining 50% of the outstanding
stock is owned by Emhart Manu¬
facturing Company. Plax manu¬
factures
a wide variety of
plastic
bottles and other plastic products,
Monsanto has been
of Plax products,
distributor
a
'
matically recognizes ;stamps on
letters, positions the envelope,
postmarks and cancels letters
bearing adhesive stamps at speeds
to 30,000 pieces per hour. It
that the machine cuts
up
is
claimed
the
present time and cost of the
primary mail-sorting operation by
more
jJian one half.
NASD District No. 11
•
*
Elects New Officials
American Hardware Corporation
has
announced
to
125,000
stock
shares
plus
to
up
plans
of
to
offer up
its
common
cash
in exchange for
shares of common
250,000
stock of Savage Arms Corporation.
One-half
share
of
Hardware
plus
Announcement
has
been
made
of the election of Glenn E. Ander¬
President, Carolina Securities
Corp., Raleigh, N. C., as a member
son,
N A S aj's
° f
Board of GovHe
cash will be offered for each share
ernors.
of
is
tree
thing of the past.
a
and
which
consumption
use
As
revolutionize
rial
Yet up
until 1927 the
other.
now
comes
a
junior partner —
particle board, which threatens to
plywood will
more
Nor is plywood
paper
was
the
recognition
are
well illustrated by the experience
of our own company at Toledo and
Coos Bay, Oregon. In 1951 when
we acquired the large sawmill and
timber holdings of C. D. Johnson
Lumber Companv at Toledo, lum¬
ber was the only product made
there. Realizing the value of the
integrated unit for a perpetual
operation, we added several other
large blocks of timber, two ply¬
wood plants, and we are now add¬
ing a pulp and paper mill
to
create
a
completely
integrated
unit. To this working circle
in
1956 was added Coos Bay Lumber
Companv with
large stands
of
timber 90 miles south, a large ply¬
wood
plant, a hardboard plant
ican exports were forest products.
That was in 1608. 350 years asm.
ber
1957
building products
sumption
first
The
In
to
products in¬
dustry.
was a
volume of
become
a
the Germans call wood "Universal
—
than
be made in 1957 than in 1956.
developing
a whole stable of new
products by
breaking down the fibres; separ¬
ating them from lignin and then
reconstituting them in combina¬
tions of resins, glues and
other
rubber
onstrated
research is
now
from
one
very
and about 5%
New Products' Success
And
now
Reeves plant will include automation facilities which are
expected
to reduce material handling costs
re-
open in Hartford.
It
believed to be the first
cooperative organization created
by inis
manufacture in the forest products
industries. Here again there has
sively
lum¬
Building has
cently been
will
And
SPAN
new
companies
Manufacturing
ucts" exclu¬
as
The
ness
in
ticle
of
new
as
VinrvAvt
vested
Products. -(2) Efficiency of annually, in the past 10 years
Manufacture. <3) The Stability of Douglas
Fir ' Plywood
has
in¬
Timber Values.- (4) Permanence. ; creased
200%,. insulation
board
(5) Future Demand. • ;
50%, hardboard 100%, and par¬
y '
think
versatile
industry. Washington
the
I
A
more
Although the consumption of lum¬
ber
this
rvlr*n
sales.
some
the
alone paper and board capacity in
just Oregon and Washington has
Hopes plywood and lumber will finally learn to
match output to
shirts
your
and
again transpose the value of
pulp and paper industry to
the
Northwest is interesting to
note, that in, the last 10 years
be concerned about future
to
in
come
laundry
the
me
the
may decline but not logs or timber.
Notes perpetual, growing supply assures
permanency of the
demand.
•
glassine,
as
To
price of lie products
industry, and
that
the
growing
mounting
timber in each 20-year period—for the
past 200 years—was
worth more than it was the preceding 20
years. Asserts selling
5
items
milk bottles—all originating from
Kraft. And the end is not in sight,
products alone must double by 1975 just to keep pace
consumer demand, and another study revealing
paper
with
from
9
succeeds
Savage.
Hardware
will
be
; J.
to accept a minimum of" Joseph
100,000 of Savage if tendered for Muldowney of
S c o t t&
exchange and may accept up to:
Stringfellow,
the full 250,000 shares. Hardware,
Richmond.
*
together with its affiliate, B.S.F.
bound
Company, now own about 100,000 *
Savage's 766,834 outstanding:
of
shares
of
common.
The
offer
by
Hardware
was
precipitated by a
proposal of the Directors of Sav-
exchange 100,000 shares of
a^e
Savage for the outstanding stock
of Aircraft
Armaments, Inc., Bal¬
timore, Maryland. A stockholders
meeting of Savage was called for
Nov. 15 to vote on the acquisition.
Hardware
and
formed
B.S.F.
a
stockholders committee to oppose
the
acquisition and indicated that
its
exchange
stock
for
offer
of
Hardware
Savage stock would
withdrawn
if
Savage
be
acquired
Aircraft Armaments. Stockholders
of
Ander¬
Mr.
is
son
mer
of
for¬
a
Chairman
N A S D's
District
Com¬
mittee No. 11.
js
jje
the
of.
one
founders
the
and
Glenn
President of the
of
ers
E.
Anderson
First
the
Securities
Carolinas, and
President of the
Deal¬
Past
Raleigh-Durham
a
Bond Club.
Elected
rett
of
members
as
Committee
No.
11
were;
District
W. Bar¬
Disney of Abbott, Proctor &
Paine, Richmond, and Robert W.
Fleming of Folger, Nolan, Flem¬
ing & Co., Inc., Washington.
Savage at their Nov. 15 meeting
proposal
the
rejected
Aircraft
Armaments
to
acquire
thus
and
paved the way for the actual ex¬
change offer from Haidware.
#
%
Form Planned Sees.
BOSSIER
Securities
CITY, La. —Planned
Corporation
o
has
formed with offices at 113
Soundcraft
Reeves
has released
square
Ccrpo-at'on
plans to build
a
50.000
fool plant in Stamford at a
The
total cost of about $T million.
been
Magno¬
lia Court to engage in a securities
business.
Jesse
L.
Walden
principal.
is
a
*
assures
lumber
has increased from 50 lbs. in 1932
the
30
to
many many years
to come. Every¬
from
goes to thq.
these plants ex¬
years
wood
to
fibre
the tree being used
plus wood to produce
new products. One
200
lbs.
today,
consumption
and
the
per
of newsprint
prooortion. This
growth has been due
to research and
new
products, but
largelv due to im¬
of
the
most
dramatic
proved manufacturing techniques
develop¬
ments
of these is in
the panel- Paper
and pulp can use almost
products field.
These
comprise any wood fibre todav, and this has
principally
plywood,
insulating greatly increased the demand for
board,
hardboard
and
particle chips and logs of all softwood
multitude of
a
board, ail virtually unknown and
also
species,
Fir,
*An
address by
Western
~
land.
*
Regional
—'can
Mr. Buckley before the
Trust
Conference
of
Bankers
Association, Port¬
Ore.
has
been
but
Yellow
principally Douglas
Pine, Spruce, and
Hemlock. The great growth in the
pulp and
in
the
paper
"work
supply
thing
of
materials
raw
the
for
tree
markets through
the bark
and
studies
being made to utilize that.
cept
The
factor
next
consider is the
are
to
raw.
material—timber.
Increase
All these
the
tree
utilization
of
with
the
wood
growth
fibres,
in
the
business has been
horse"
class—Kraft
Continued
on
nil.
L
,
M,..
U >;
wyi
....
u
,
;Primary Markets tn
-;5
CHAS. W. SCRANTON & CO.
page
24
Exchange
connecticut
New Haven
§ securities;^
in Timber Value
products stem back to
and
!
Members New York Stock
want
we
availability of
1
t
'
••
New York —REctor 2-9377
..
Hartford
—
JAckson
7-2669
Teletype NB 194
•
Financial Chronicle
The Commercial and
10
1
rate
the util-
The Future oi Natural Gas
Problems of Industrial Customer
to
industrial
of
and
from
this
going to be in business for a long, long time,"
the widening cost gap between gas and higher
are
operation.
This leads
to which our
natural
demonstrated
by the fact
that
more
materialsproduced
suuolierf in the
with
familiar
generally
efforts
the suc¬
Michigan
of
Con¬
50% of all the
cessful
natural gas
brought to
to demon¬
strate before regulatory commis¬
sions and the courts that pipe line
market is sold
sales
solidated Gas Company
is
which
serves
users.
The
<
directly to industries in the
areas
industrial
o
Ralph T. McEIvenny
impor-
industrial load is increasing
rapid¬
ly as more and more space heat¬
ing customers are connected by
utilities. The space heating cus¬
tomer is a valuable user of gas,,
and an excellent source of revenue
I
eral,
all
sale
believe
I
pjpe ]jne js
a
are
When
industrial
interest.
problem
in
merely
Detroit.
a
There
have
in Indiana and
been similar cases
filed
a
local
sells
utility
a
schedule
company
last few years in the
price of gas
field, and with the develop¬
exacting take-or-pay pro¬
visions in the gas purchase con¬
in the
ment of
and
in
taken
into
determining
-
cost of gas.;•
consideration
the
:
commodity,
.'.-m,,
:/-y
••
Under
present-day gas purchase
contracts, pipe line -companies are
was subject to
tomers
desire
in
the
winter,
the
-
of facilities, poor
duplication
ond ultimately in higher
rates for everyone,
There is no justification lor attempting to turn back the clock
to these bygone years and have
under
.
-
-
4 service
regulations which have
approved by the local regu-
been
be
must
utility and
basic part of the-
a
summer
and
rules
all
conclusion pipe line company as a practical
and pain¬ matter., must agree' to buy large;
±ul experience showed that con,- volumes,-orwa-year-round basis.
Potion between utilities rendei- Some of this
gas. can be
jng the same-type of service in v stored, either by the* pipe line
the same area resulted in waste; company*, or by its customers if
and*
does so under
plant it
rate
an
practically
proper regulation. This
was reached after long
•<
to
gas
gas
commod¬
gas
.tpihpaiiy which
be
line
pipe
a
that
and
a
Of course such an argument is
'°bvioUsly fallacious. Many years required t o a c c ep t what, ap¬
a8° lhe legislatures o£ most states proaches 100% take-or-pay-for
decided that' the people would provisions. This means that in or¬
best be served by a single utility / der to get the gas which its cus¬
an
from
directly
that
as
other
expenses
shall
be
split
equally between the demand and
arguing
American way of liie.
ing gas from its local utility at
regulated rates and under regula ted conditions of service rather
than
!
purchased
of
an
of
of this kjnd between a
industry has
real economic advantage in buy-
a
cost
In gen¬
provides
and "forcing unnecessary
tracts with the producers, the gas
the public genThe pipe line attempts to; industry has now reached a point
where; other
important
factors
the idea that "competition"
give
and
can
formula
the/cost
charges
formula.
a
erally.
hack
it
the
costs upon
added
bvtheir
area
this
of
ity
utility
sincere-
passed
are
commodity
shall be considered
right to "compete" for the industrial- business by undercutting the
ratc structure
of the regulated
company.
Consolidated
contrary to the public
Michigan
This has not been
tance of the
by
a
and
the basis of
on
b^nd^':
demonstrated that
than
true.
know whether their
good or bad for the
They do not want to
buy gas, or anything else, in some
way that produces higher prices
make
indus¬
gas sales
clearly
utility
distributing
of.
Federal
divided
the commodity charges.
exclusive right
*' When the field price of gas was
in its, service
low the formula did not present
area.. The pipe line misrepresents,
difficulties.
However,/c with the
this as "monopoly" and attempts
to claim that it should have the very substantial - increase in the
•.*.'»>:
■/.
I believe that industries
a
the
to
ly want to
policies are
community.
presented by the efforts of
pipe line companies to of
sales directly to industrial
various
customers who are located within
uddch costs
the service areas of distributing
to them
utilities.
1 \
Secondly,
I believe that many of you are
certain
upon
is
directly to the prob¬
lem
gas
industry relies
trial
Invasion of Local Markets
The extent
that
is great-
public relations.
-
area
price." should not have
ly concerned over its standing in
the community.
Most industries
spend thousands, or maybe millions, of dollars promoting good
It is hardly necessary for me to ket at the best possible rates for
emphasize the importance of the all of its customers.
industrial sale of gas in a success¬
utility
ice
the
years
Commission
demand
pipe line attempts
a
several
pipe line's cost of service between
to justify its invasion of the serv-
believe
is entirely
statement
believe that any industry
price of other fuels.
ful
buy my
gas at the lowest possible
In the first place, I don't
For
Power
/
public." ^
Sometimes
-
from a distributing utility or
a pipe line. What I want is
gas
bright, from both the standpoint of increasing gas reserves
assuring "we
v
from
problems, Mr. McEIvenny
gas industry is extremely
commodity charges. Other than these
shows that the future of the natural
the customer who may *stiming
answer
"I don't care whether I
gas users
revealed
Detroit utility chairman who also comments on the problem
allocating pipe line cost of service between demand and
by
con-
say:
direct from unregulated pipelines are
gas
primarily
are
dustrial customers have to be able
Service Company
Unrealized higher cost consequences to
buy
who
Those
TA
t
gas to be priced at a level
which is attractive to
industry.- »
utility, in the unenviable position
of providing standby service for
the pipe line, contrary to. the in¬
terests of the utility and the con-
cerned with the sale of gas to in-
By RALPH T. McELVENNY*
who
'
ities.
And Direct Industrial Sales
Chairman, American Natural Gas
Detroit, Mich.
in
result
1957
*
the
vide service when called upon,
it is difficult for the utility because of the local public interest
to/refuse service. This places the
benefits
to all of the customers of
customers
t
Thursday, November 28
...
(2330)
storage, is
-
fortunately
available.,
Many pipe lines,, however, do not
have
storage
fields.'/ Moreover,
even
large storage facilities can¬
not indefinitely handle the tre¬
mendous volumes of gas generated
distributors and pipe lines fight- by warm .winters.
j
This means if the pipe line is to
try is
ing each other for industrial gas
this same question is one
treated
sales. The* victim of such disor- meet its purchase\ commitments
principal issues in current hear¬
nation and will be able to buy derly action will be not only the with
the
producers, it must be
ings before the Federal Power
and its fair share of the- general public but the industrial able to sell summer gas to its util-'
Commission on a proposal to in¬ gas
utility—but he also creates
available supply—at a just and customer as well.
:
v
ity customers at a price which will
other States.
Thus the indusassured that it will be
fairly, without discrimi-
latory authority.
time
of the
At the present
.
—
to
a
special problems.
order adequately to serve a
some
In
terject another pipe line into the
Great Lakes and Great Plains
reasonable rate.
■
The proposed new line is
must be able to meet his needs on, relying on direct sales to two steel
plants in the Chicago area to sup¬
the coldest winter day.
Nothing is worse than having port a market for its project.
heating
space
'
customer a
the furnace go out
utility
when the tem¬
perature drops to zero, or below. '
Nothing will destroy a utility's
standing in the community faster
than a shortage of gas in the mid¬
dle of winter.
prevent this public
utility must be sure
that it has a sufficient supply of
order
In
calamity,
to
a
meet its peak day require¬
gas to
ments—and sufficient distribution
facilities to get that gas
to the ul¬
timate consumers at the time they
it.
want
areas.,
The
direct
industrial
sale
by
a
pipe line company in the service
area
of a utility has been pro¬
scribed by the courts.
This was
conclusively stated by the United
States
Supreme Court when it
vigorously condemned the efforts
of a pipe line company to "com¬
pete for the cream of the volume
business without regard to the lo¬
cal public convenience or neces¬
'..
sity."
The
line
court held
were
that if the
successful
in
this
'.
pipe
ven¬
Unfortunately, there is only one
ture it would adversely affect the
day in every winter. And
experience shows that the
distributing utility's over-all cost
peak
our
day we must plan so long
and hard for seldom comes, since
peak
weather
our
apparently is getting
progressively warmer.
This
means
that
on
every
of service and its rates to its cus¬
tomers.
This
results
from
the
fact
that
the
of the Federal Power Commission.
is operating its system
They are not considered by that
with idle capacity. The amount of
Commission in setting a pipe line's
the idle facilities necessarily in¬
rates for gas sold to utility cus¬
creases
as
the number oi space
tomers
for
resale.
Accordingly,
heating customers rise.
the sale of gas directly—rather
In the long run, these idle facil¬
than through the distributing util¬
ities
of
the
distributing utility
ity—reduces the regulated reve¬
mean higher rates for gas users if
nues of a pipe line and increases
this utility plant cannot be put to
its rates for regulated sales to its
work providing gas to industrial
utility customers. This added cost
customers on both a firm and an
of pipe line gas must be collected
interruntible basis.
by the utilities from all of their
On the other hand, the very fact customers in the form of increased
that the facilities do exist—and
utility rates.
the fact that the supply of gas is
On the other hand, if a pipe line
available—makes it possible for
sells its gas in jurisdictional sales
industries to obtain large supplies
to its utility customers — rather
of natural gas from their utility
than non-jurisdictional direct in¬
supplier when and where they
a
utility
need it at reasonable rates and on
an
equitable and non-discrimina¬
tory basis.
dustrial
sales—all
purchasing
are
gas
the
benefited.
This benefit it two-fold.
*An
the
tion,
address
American
by Mr. McEIvenny before
C
as
Association
St. Louis, Mo.
Conven¬
contract
at a
price
be favorable to the
industry today but most unfavorable in a very short time. Usually
the contract is of comparatively
short
may
duration
often
and
increase
the price of gas in
tion
the
to
price
When
utilities.
time
contiact
the
—
the
industrial
customer
who
is
gas
may
the
But
directly
if
an
industry
The many smaller businesses of
the community are obviously at a
If
the
utility
a
situation,
bb
driven out of the large volume
industrial business by the pipe
line, then the pipe line is in full
company
can
command.
Industries
would
find
them-
Between
>
Demand
and
There is a second
w0"uld "like
j
rather
briefly
believe will
j
subject which
comment
to
a
as
upon
matter which
im-
be of growing
p0rtance in the sale of
industrial
gas,
it will also be a subject of
growing importance in the operation of both pipe lines and distribution companies which are now
being confronted with stringent,,
take-or-pay-for clauses m the gas
producers', contracts,
The issue is the allocation of
the pipe line cost of service be-
tween the demand and
is
important
method
by
Commission
It
used
the corn-
Position
.
profit,
of it to
to
sell
and
large
industry when it
to
Certainly;-the gas which is sold
industry should pay a reason¬
able
of
share
However,
the cost of
cannot
it
service.
be priced
so
high that it cannot be sold.
It -is
take
therefore,
important,
look
new
a
and
at
consider
to
the
the
to
formula
mination
competitive
of
tbp
by the regulatory
price
commodity
body
of
gas
authorized in pipe line rates.
Bright
Future
for
Natural
Gas Industry
Although
time
I
have
spent
some
certain problems
of industrial gas sales, I do not
want to give the impression that
the
discussing
natural
Gf
On
the
is
business
gas
beset
the future of
contrary,
business
is
extremely bright.
experienced,
we
because
the
the
Federal
in determin-
have
and ' are
presently
experiencing, are largely the re¬
sult of growing pains.
If these
pains
stop,
then
perhaps . we
should begin
worrying that we
are
in real trouble.
From the standpoint of gas re¬
serves—the very life blood of our
industry—we
excellent
The
time.
appear
position
to be in
greatest
in proved
nual
increase
able
gas
States
an
the present
recorded an¬
at
recover¬
in the United
registered during 1956.
reserves
was
During the past
year
the recover¬
able
gas
over
^
pipe line's commodity cost
is vital to the ability of
Another unjustified burden fac- the pipe line and the distribution
ing the utility is that of being company to sell to industries the
compelled to furnish gas to an volumes. of gas which the pipe
Secondly, the added revenues industry when the industry's sup- lines are required to take or pay
received from the sale of this gas ply is cut off
by the pipe line. for.
By the same token the
by the utilities to their industrial With its public obligation to pro- method is important in permitting
...
s
it
of
is available.
The difficulties which
,
ing
_
.
.Utility
volumes
this
Commodity Charges
Power
consequences.
dispose
with difficulties.
the
the
a d
,
Allocation of Pipe Line Costs
modity charges.
at
■
So much for the direct industrial sale,
complete mercy of
a
single, unregulated pipe line
supplier—and would have to bear
selves
.
closely followed
,^e Question of direct industiia
sales in the Detroit area. And i
*ias hrmly and consistently go
°n fe(?ord as opposed to a pipe
line's invasion of the service area
local gas utility,
buys
has
disadvantage in such
to
price of other fuels in the deter¬
Commerce -has
•
entered
into a contract to sell gas to his
competitor at a cheaper price.
line
pipe
same
coin-
„
-^or many yeais t e
a pipe line > it
short time later
a
the
of
,
j
'
reasonable
the
thousands
in
'
_
from
find that
the
mund;y
willing to pay a higher price or
if the pipe line has found a place
in a foreign country where the
gas can be sold and thus be free
of regulation
Furthermore, in purchasing gas
from a utility, an industry is assured
that
its
competitors are
going to pay the same rate for
the same type of service. No one
receives an unfair price advan¬
tage or an inequitable price
gouge.
welfare*, of
the
of
businesses
smaiier
find itself cut off from its
supply. This can readily happen
if the pipe line has located an-
in
and
people
may
other
excellent example of this is
jnterested
even prior to
industrial plant
perhaps
expires—or
that
will
rela-
paid by the
prices^
indus--, enable;them
themselves*, industry in competition with other
position which has been taken
in Detloit by the Board of Commercc> an organization composed
Q£ more than 4,100 businesses. The
organization is vitally interested
-n £be wenare of industry in the
area
But ,it is also very vilaUy
line to producersor the
at which the pipe line sells
pipe
to
-An
;it con-
tains escalator clauses which
that
will
users
the direct industrial sales fuels. The commodity/price, there¬
of gas within a utility's franchise* fore, must be low enough so that
the distributing /utility / can-, buy
area when they are fully informed
the excess pipe line "gas, make a
cf the facts.
•
negotiated
which
gas
oppose
consumers
from the utilities
Simply stated, industrial gas
First, such sales increase the
in hand with space
heating sales and the other types regulated revenues of a pipe line
and reduce the rates charged to
of service rendered by a distribu¬
its utility customers. In turn, this
ting utility company. This is nec¬
reduces the rates charged by the
essary if a utility company is to
be able properly to serve its mar¬ utility to the public.
sales go hand
to
trial
confident
feci
We
pipe line, however, sells gas
industry on the basis of a
.
profits from the sale of gas by
a pipe line directly to an industry
day
are not subject to the jurisdiction
—-except this mythical peak day—*
A
14 trillion cubic feet.
Natural
1956
cub'c
increased
rf«erve«!
was
f°et.
gas
a
production
But
during
10.9
record
this
trillion
was
about 3
a
trillion f^et lees than the amount
gas
of increase in the proven reserves.
This is indeed
At
the
end
a
healthy situation.
of
the
year
the
natural gas reserves in this
country
had
risen
to approxi-
proven
Continued
on
page
32
Volume
t'i
-
t
,
186
Number 5694
.
.'
.
.
The Commercial and Financial Chronicle
(2331)
•■•..
IH
„■>#
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iv^X#;
!£#£«
>
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11
12
tified
President, The Dow Chemical Company
'''
'
■
r
,,
■
against channeling foreign aid through the
:i
.
[ //'<
United
Nations, Mr. Doan recognizes the plight of the "have not's,"
bnt believes we should exercise unilateral control in dispensing
limited
in assisting less developed countries.
resources
The Dow Chemical
mentions
head
what he considers
state-to-state aid and directs attention to
have markedly different cul¬
tures, mores and traditions which
may not be compatible with some
of ours. In short, while they may
are
detrimental considerations involved in such a pro¬
more
be like us.
security.
be done to further
to
private investment so long as it is not
tions
of
are
frequent limita¬
trading
resources,
used
which
tors
areas,
other fac¬
and
educational levels
against
militate
the
adoption of some of our economic
jobs.
export United States
there
Also
welfare and
Outlines the advantages of and describes what can
and (3) find ourselves betraying our own
rency,
interested in learning from us,
be
they do not necessarily desire to
posed multilateral activity as SUNFED—where we would: (1)
have but one vote; (2) contribute heavily in convertible cur¬
practices.
making ment of capital, resources and
month in some quite diverse mat¬ technical knowledge.
ters.
Milwaukee took the Series
The big questions, however, are:
away from the Yankees and the "How should these objectives be
October
was
history
a
*
Russians
the
to
outer space.
►
wit¬
also
It
nessed the ar¬
in
rival
midst
most
our
of
a
development
which I
should like to explore. And I trust
/ou will bear in mind that this is
from
Britain who
gained
a
•elated
and
There
specific
Leland
I.
globe still further and focus
attention
pletely
com¬
more
even
and
complexity
the
on
have
to
be
of the world's problems.
over-riding one, of course, is
that of differing ideologies and
whether or not they can be com¬
urgency
The
lem. There is the answer of Com¬
munism. This is not
ble
it is
answer,
so
a
economic devel¬
sheer
to
answer
possi¬
effective an
only
opment that it is our chief worry,
n
case
we
were not
sufficiently
of it
aware
we
needed only Sput¬
nik to underline Russia's
ability to
technology. And one
here parenthetically
that
graduating technical
promised so as to enjoy a peaceful
people at a more rapid rate than
coexistence.
we—thus creating a vast pool of
It would appear that the world's
echnical assistance personnel who
most basic root of unrest is the
vill carry with them the doctrines
great disparity in the conditions and propaganda of Communism
under which men live. The most
wherever they go.
Further, she
obvious
is
physical well-being, las indicated a
willingness and
followed by such things as free¬
ability to supply capital and re¬
dom from oppression, desire for
sources,
if
need
be,
in
large
self-expression, identity, equality
tuantities.
and
on.
so
of war may
While
the
see
look about our world we
we
have's and have not's.
some
We see
countries whose people have
high degree of physical wellbeing, relatively high cultural ad¬
vance
and
many
such spiritual
a
nourishments
freedom,
as
inden-
tity and opportunity.
We
see
supply
note
she- lis
Communism has
one
other asset
approaching the problem. It is
quite willing to use force—to bring
about
change by decree.
And, of course, that is
of
big quarrels with Communism
and the communist approach.
It
subjugates the individual to the
one
our
state. The state becomes supreme,
arbitrarily deciding what is good
what is not good for its sub¬
jects.
level
in another.
Such
jealousy and all
which
tween
of
men
determines
he
circumstances
just natu¬
rally breed fear, unrest, suspicion,
tions
lead
the
to
other
,
emo¬
conflict
between
and
men.
be¬
recognition
We
is
believe
due
come
to
the
status
general
that
more
comparable to that
of the have's. And, of course,
there
is equally general recognition that
such
*An
a
project requires the investaddress
by
Mr.
Doan
DigitizedEconomic Club of New York
for FRASER
and
before
the
challenged
that
vigor
we
have
confronted
him
unshackled
have
every
Forcing Imitation
It is natural, then, for us to be¬
lieve that a similar formula is in
best
interest
of
of the world. Thus
to
see
other
we
peoples
should like
assistance to the less devel¬
oped countries based upon princi¬
ples
of
democracy
Herein lies
tend
a
to
and,
tial to
been
a
our
Our ancestors invested
freedom.
lot
of
of blood,
sweat and
a
tears be¬
they wished to be free—and
lot more to carve a civilized
is not with¬
weakness., It may be too sub¬
out
try's general budget;
the
whom
wish
we
served
population
benefit
to
wish
whom
we
friends. It has in
with
and
only
cases
already
an
old phrase, to make the
an
rich
the
and
richer
poorer.
poor
the pitfalls
of state-to-state aid when viewed
Such
of
some
are
in terms of our desire to improve
the world's
of
condition
the
less
people.
fortunate
SUNFED
Now
being asked to par¬
gigantic project of
we are
ticipate
in
a
aid
multilateral
the nomencla¬
SUNFED. I might
add that the world "Special" was
velopment
in
or,
ture of the age,
after
for
need
the
added
initial
letter
some
"U"
preceding the
befcatne painfully obvious.
is
by the United Nations Economic
and Social Council which would
call
for
from
contributions
voluntary
with
nations
various
the
from
dis¬
pool
con¬
In the initial
by the UN.
in this century we have gone into
stages the thinking was that con¬
tributions
would
be
made
as
tremendously
funds
our
own
the
rights
gression.
of
against
others
ag¬
' /
World
Since
distributed
II
have
we
upon
humanitarianism
in
possibly some economic
self-interest, but basically these
this,
and
also
have
been
investments
against the spread of Com¬
So
Nations
the
set
have
after years of this, we
beginning to face up to
the fact that while a tremendous
fact,
assistance
for
will
continue
still
exists—
for
to
many
this
asked
be
fall
to
machinery in motion.
This is
small program.
no
that
estimated
period of
voted
against
a
Let
a
the
through
mitted
So
there
is
understandable
an
need
the part of
on
countries
lessj developed
for assistance in elevat¬
Are
to
Communism?
It
of
rected
greatest
It
irresoective
economic forces.
can
where
of
It can, if
v.--.
,
na¬
'/V
•
-
United Nations.
Betraying
Perhaps
to
Own
Our
Goals
in
gentlemen
wish
humanitarian and glo¬
thinking. Humani¬
these
appear
bal
their
global thinking are
desirable, but I
the/globe is not at
this time one big happly family
tarianism and
and
necessary
submit
and
that
we
ill
can
tarianism
in
our
curity.
afford
humani¬
that
form
a
may
welfare'and
own
se¬
'
.
.
Now, I presume we will find it
necessary to continue some gov¬
ernmental foreign aid for some
to come, and we should
certainly keep it under our
There is need, how¬
ever, to reduce it as much and
as quickly as possible,
and I am
of
the
opinion that if we can
bring about the right set of con¬
ditions private capital can take
over a large part of this develop¬
ment job with advantage to itself
years
most
control.
own
benefit to the host countries.
and
There
in
this
distinct
are
be
sure
economic
sound
a
businessman
No
advantages
For one thing
such capital would
approach.
can
serve
otherwise.
would
For
purpose.
invest
it
private
another,
enterprise will automatically sup¬
nism.
Private
to
we
One
other aspects of
culture,
by
will
it
that
ing,
This is
States.
an
to
im¬
we
gradually eliminate
as private capi¬
can
state-to-state aid
tal
taxes
burden
would
friendly
nations
only
desire 1 to
we
Finally, since these investments
effective
no
insure
whom
will be economic and self-sustain¬
to channel our investment
most desired
to
directly some of
very
masses
help.
in the directions we
even
experience and instinct
to elevate, rather than
benefiting
ing the distribution of the funds.
power
our
tend
depress, the status of the worker.
Thus we shall be reaching and
would,
to con¬
Vote
have
stand¬
housing
and
First,
we
would
presumably
only one vote in determin¬
would
American
it
ards of education, health,
have
We
enterprise will also tend
with
take
the
thus reducing the
over,
tax¬
American
the
on
payer.
Just
,
last week, in San Fran¬
Vice-President Nixon dis¬
cisco,
cussed this
approach, and I agree
with most of what
Second, our contribution, being he said. It is necessary, of course,
to
recognize that this is not a
in readily convertible currency,
You
could be spent anywhere in the simple and easy approach.
consideration
state of cold
world.
on
There
so
long
as
in
exists.
war
would
be
no
need
fhe part of the recipient coun¬
try to spend it for American ma¬
terials and American technicians.
In
fact
it
could
as
readily
buy
neces¬
princple
cannot
force
in
given
it
any
private
You
investment
direction—whether
Indonesia
be
Ohio.
or
State
the
however,
can,
of
crease
conditions which will attract it.
from Iron Curtain countries. Thus
we
arbitrarily
uncom¬
materials and hire its technicians
so.
advantages.
to
committed
as
"
.
-
world
following month, in ad¬
dressing the American Society of
Newspaper Editors, Adlai Steven¬
son proposed that all our foreign
aid
be
channeled
through the
in
participate
be di¬
need
is
normal
desired,
be used for political leverage. T'he
an
fr^edo^. recipient government can control
pitfall in that we its use—direct it, for example, into
be
overly
self- needed
public works,
transport
the
other
hand, would obviously
only within
be in rubles spendable
the Soviet Union and its satellites.
There
but
I
are
think
s"fficie^+
any
Increasing
United
could
indirectly be strength¬
State-to-state aid, of the type ening Iron Curtain economies and
we have been
to
spread
communist
extending, is a di¬ helping
rect
and
convenient
means • of
propaganda into new areas.
The
Russian
supplying capital and has a num¬
contribution, on
ber
the
The
moment
on
depends
things, but I do not
a
be expected
tribute heavily.
a
disposition to reduce foreign aid
as such in the face of a
continuing
to
were
the United
Communism Gain?
for
course,
portant
Will
•
and
.U'
available
well
as
Nations
from
aid
be
to
tions.
and
benefit
voters
a
<
r:
agencies.
Economic
fund
General As¬
program—and
much
the
•
United
the
multilateral
estab¬
program and
ECOSOC rec¬
the
assume
us
of
evident to
f
over
The program to be administered
early
any
ommendation to
in
the
amount last authorized for foreign
aid clearly shows that Congress is
not disposed to continue so ex¬
pensive a program. There is a
growing sentiment for tax reduc¬
tion, and from a standpoint of
practical politics foreign aid is a
more
likely place to reduce the
budget than domestic welfare pro¬
grams, the benefits of which are
more
\
freedom, not in those of commu¬
a
Kingdom,
such
of
we
taxpayers.
'
;
contribution
2%
qualifications.
we
support
to
over
against
lishment
such
and
His proposal included
points:
Canada
United
firmly
or
Cur¬
years.
the United States have stood
The
and
that
reduction
Na¬
program
ply its own technical assistance—
and
they
will
be
technicians
grounded
in
the principles
of
payer.
sharp
year
out
sembly.
The
25
a
25-year period to be made with¬
Some
decades.
feasibly go on
bleeding ourselves forever.
Our
resources,
while great, are not
without limit, and neither is the
patience
of the American
tax¬
cannot
years—we
Gross
would be $8 billion
and that figure presumably
The
adequately such a program would
require as much as $10 billion a
now
need
will
of
United
ajnount
that
would rise.
vote of ECOSOC the
Assembly of the United
by
year—extended
munism.
In
wait for disarma¬
"Why
General
for
freedom, fortifying both our own
and
that
of the recipient coun¬
tries
of,
ment? Let's do it now."
billions
foreign aid. There has
some
released through dis¬
were
armament,
but
as
enthusiasm
gathered the sentiment shifted to
one
War
billions
of dollars in
been
costly wars to de¬
freedom and uphold
a
of
period
a
rently
betray
devised
scheme
a
Walter Reu-
Would be
which
fraught with hazard.
It is called
the Special
United
Nations Fund for Economic De¬
trolled
fend
for
more
even
to <2%'
equivalent
undesirable situation—to call upon
upon
1956
of
tional Product to such
make
to
some
aggravate
to
March
these
the
of
masses
a
wilderness. Twice
i'
.
obivous
proposed
that the
States contribute an
it often fails to materially benefit
tributions
a
In
such
over
ther
weakness is that
A further grave
cause
nation out of
H
.
dangers.
healthy economy.
a
Such aid, however,
SUNFED
nation has
history of investments for
history
opportunity and
sarily think
with
responsi¬
him
bility.
the
conversely,
bend
effort to improve their un¬
standing
many
unlimited
with
often
}
fact
economy.
ing their economies. Is this bad?
we in danger of
thereby los¬
ing additional areas of the world
the in¬
economic
our
the
to
dividual,
foremost among
the world's needs today is that of
bringing about a greater degree of
equality among its people — of
helping the have not's to attain
a
only now do we
a similar mass
all, we need to approach the
problem of aiding the less devel¬
oped or less industrialized coun¬
tries with a great deal of under¬
succeed
fail, and he stands as a con¬
stant
challenge to business and
industry
to
build
the
better
mousetrap.
elevated
we
shall
who
and
nations
•
Helping the Have Not's
Thus
itself
In
and
"We have similar objections to
of material .wellbeing would be regarded here as less extreme forms of statism be¬
gross poverty, where culture has cause they tend to diminish the
lagged and where individual free¬ dignity, the freedom, the oppor¬
doms and opportunities are mini¬ tunity of the individual.
We still believe firmly in the
mal. And, of course, we see all
degrees and combinations of eco¬ better mousetrap and the right of
nomic, cultural and political con¬ the individual to decide whether
ditions. We see freedom here, reg¬ or not he will buy it. Within the
imentation there, serfdom in an¬ framework of public safety and
other place. We see freedom with decency we endow the individual
relative poverty in one place and with the right to determine his
relative prosperity with regimen¬ own courses of action. Through
tation or a high degree of statism his decisions in the market place
average
own
are
in
an^
other nations where the
the
might
mechanism
be political, it springs
from human factors.
As
of
prospects
The
political
differing
are
unconcerned
derstanding of us.
philosophies regarding this prob¬
Dou
questions and
counter questions which Sputnik
has raised it has served to shrink
our
will
matters
gnored or taken for granted.
Apart from
out
many-faceted a
and
ubject,; that numerous angles or
admirers.
all the
complex
;o
host
of American
friends
to
lues
gracious
lady
It is these ave-
nations.
tetween
lovely
and
been unique, and
see
in
has
market
mass
market developing in Europe un¬
approached? By what means can der the program outlined for the
hey best be accomplished for the European Economic Community. If
successful, this should alleviate
greatest good to all people?" On these there is a great diver¬ many of Europe's traditional eco¬
nomic ills, and we can be sure it
gence of opinion between indiwill have potent influences on our
/iduals, between organizations and
won
race
Our
-
'
.
systems and other facilities essen¬
by,
may
of the pitfalls of
some
doing
of
ways
our
'
•
people who do not ac¬ ject to vagaries of politics at either
cept
them with eagerness
and end of the line. It may be chan¬
alacrity.^
i• : ,V" neled into projects which have
Many countries are sincerely in¬ more pndeful appeal than eco¬
terested in American methods, but nomic validity. Or it may even be
channeled into the recipient coun¬
we have to bear in mind that they
'
■>*(«, :
so / con¬
things are superior that we are
unsympathetic to, or at least mys¬
By LELAND I. DO AN*
In advising
that
vinced
Investments for Freedom
become
We
righteous.
'
■
,
the
Thursday, November 28,1957
...
'
■
our
Chronicle
The Commercial and Financial
(2332)
such
to
two
these
considerations,
two
^rn
plan.
should
away
Yet
those among us who
there
seem
be
control
the policies and at¬
recipient countries.
Some countries, such as Canada,
The Netherlands and Venezuela,
have found that large amounts of
pedent
upon
titudes of the
American caoital
by establishing
from
seem
climates.
ment
are
totally
policies
these
conditions, but to
far greater extent they are de-
some
a
of
Private Investment
States
to
by'the
be
can
be attracted
favorable invest¬
This
does
not
generally understood
less developed countries
Volume
186
where
Number 5694
the
for
need
.
.
.
The Commercial and Financial Chronicle
American
qapital is great.
Our
take
own
some
investment and
could
government
steps to encourage inIt could, for ex-
wodd.
to
It.
the
can
argued; J that
foreign
when
rest
concessions
are
illogical
,heavily taxing
so
investments.
On the contrary, by
private
such1 concessions
investment
should
be
ex-
has
been
expiration
extended
with
few
many
changes in the
Walsh-Healy
the
Act, the Miller
the
Fair
Labor
Act,
Act and the Taft-Hart-
ley Act. All of these, in one
or
another, have tended to
duction.
*
1
,
-
the
operation
American
of
busi-
ness.
.
1934
,
we
the
have
had
Social
the
in-
„
In the light of these and other a small amount of something can
influences which have come upon have a tremendously stimulating
scene, it seems to me our
Trade Agreements Act is about
effect.
?
.
.
for good, helping to build a more
global prosperity on a sound and
economic basis,
Wltn
.
•
tw.' v•; »;
;
13
we
we
r. illltton
a." (Special to The Financial Chronicle)
OAKLAND^„ Calif..—David
C.
Elder is.now affiliated with E. F.
With encouragements and safe-
a long and thoughtful look
guards such as I have outlined I Hutton & Company*, 1309 Frankperhaps a complete overhaul, believe private American capital'lin Street. He was formerly with
There is no single and easy road could be come a more potent force Samuel B. Franklin & Co.
.
and
Security
'
.
'
'
••
* 7--,
v
must rest within the various
It is a distinct objective, but
countries themselves. What I have shall only reach it sooner if
suggested here could at most be soon take the first steps.
but a small ingredient.
Some--'
times, however, as with a catalyst,
r
r
u
«»
due for
Since
Wagner Act,
»
to a more equalized and happier
world. The great bulk of responsibility for development and progress
way
cost of American pro-
the
crease
.
pected to reduce •-the-need for
governmental aid, thus reducing
Act,
Patman
intervening oeHo^ wMch effect the
domestic
our
each
disregard the
on
are
from,
and
.
.
changes. Twenty-three years have
elapsed since this basic legislation, yet there is a tendency to
free
the .ineomc
•encouraging
upon
understandably be
tax
investment
we
the
of
our own
in. 1934
ample, extend the concept of the
:Western Hemisphere Trade Corporation
the
living stand- Act, the
people. ,
Robinson
Our Trade Agreements Act was Tydings
first placed on the statute books Standards
ards of
vestment abroad.
(2333)
7777- c;
.
'-V'
'•
'* v
"*;V '''
* *"
" "" f
.
7
—
j
•
^
The^^ea^l^^sponsibility
of
co'un-
lies in the recipient
course
Milwaukee, AVis7, shoW'loading (looks (right), and service,.\ 77/77
repair and vehicle garage (left). Offices occupy the center area-
Attractive, functional,.emluring, economical arc Stran-Stecl
building applications. This scene of Interstate Dispatch, Inc.,
Guarantees that properties will
not-be
expropriated
national¬
or
ized without fair, compensation to
;be paid promptly and in
freely
a
convertible
currency.
No restrictions should be
.
the
on
remission
freely
in
come
rencies,
of
ment
placed
earned
similarly,
01%
recovery
of
convertible
one's
in¬
cur¬
the
upon
initial
invest¬
through sale of properties.
arbitrary or discriminatory
No
Note
laws
should place burdens upon
foreign company which are not
imposed upon domestic firms and,
a
of course, the laws
mestic
firms
absence of columns
and other
in litis trucking terminal.
Well-lighted clear span const ruction
Manufacturers like Ilcndrix Wire & Cable
throughout. Speeds moving of
Stecl buildings
supports
cargo.
Corp., Milford, N.IT., (above) find Stranideal because of "package'* design, swift erection and life-time service.
regulating do¬
should
be
fair
and
just.
Such
to
guarantees would do much
eliminate
headaches
the
which
hazards
and
deter
now
Solving
pri¬
investment in many parts of
vate
the world.
American
Conversely, of
capital
should
course,
not
Housing Problem for
Business—Both Small and
pect any special privilege simply
because it is American
capital.
And
a
ex¬
Big
it
should, further welcome
participation of capital from
the host country.
the
Assuming
can
be
-also
see
ture
is
foreign
investment
ehcouraged,
to it that
such
it
should
we
our
that
tariff struc¬
does
not
American capital to go
simply for the purpose of
exploiting relatively lower labor
costs and importing back into the
abroad
States
products
which
otherwise would be made here.
Fears Exportation of Jobs
I oppose
they
such practices because
tend
wage
to
depress
whether
American
levels and, in a sense, rep¬
the
exportation of jobs.
objective should be to ele¬
vate the
standards of other
tries, not to reduce
or
coun¬
freeze
our
own.
As the world's standards of liv¬
ing
become
world's
more
equalized
trade barriers
can
the
gradu¬
ally be reduced and possibly,
day eliminated.
it's
a
the
modest
most
vital part of the
even
our
building
expansion budgets.
economy
warehouse,
a
.
.
.
weekly
or
the
durability,
zinc-coated steel
lass money,
(yes, big business, too!) faces is that
finding adequate, enduring hous¬
ing. Low-cost buildings "tailored" to
an
individual
business'
specialized
requirements.
columns
(1) their pre-engineered con¬
"package deal" which
order ready-made to suit your
v
Enter Si ran-Sled
you
design and built-in quality, and
come in
almost any dimensions de¬
sired. Yet their low price—and easy
financing through the Stran-Steel
Purchase Plan—brings them within
ern
more
building for,
plus very fast erection;
(2) all the unobstructed floor space
desired
because
of
absence
the
of
and
braces; (3) fast, easy
installation of insulation, keeping air-
conditioning and heating costs to a
minimum; (4) virtual fire-proofing,
with
Our Stran-Steel site-styled industrial
and commercial buildings offer mod¬
tensive
of foreign in¬
implies the need for a
reaonraisal
policies
to
of
tariff
protect
and
our
trade
domestic
warm,
lus¬
resultant
low
insurance
rates.
Another attractive feature is the
of Stran-Satin, a National
buildings are typical of
products developed by
National Steel to help serve America
better. The products reflect National's
unchanging policy of producing better
the
many
and
better steel
ble cost to
For
BUILDING
and
more
our
customers.
☆
☆
☆
catalog giving information on
all Stran-Steel products—for use in
institutional, industrial and commercial
new
construction—write to Stran-Steel Cor¬
poration, Detroit 29, Michigan.
CORPORATION
NATIONAL
GRANT
more
...
☆
an
eye-pleasing look of clean,
shining strength—blend ideally with
other
building materials—combine
NATIONAL STEEL
for
of the quality and in the
quantity wanted, at the lowest possi¬
purposes
use
Steel exclu¬
sive. Stran-Satin side walls and roofs
have
National's Role
one
program
vestment
a
Stran-Steel
,
Meanwhile, however, we should
recognize that encouraging an ex¬
with
tages:
purposes—means
of
cor¬
trous surface.
struction—a
One of the problems small business
and
economy
rosion-resistance of the finest quality
Owners most often cite these advan¬
trucking firm or any one
of hundreds of other enterprises that
provide jobs and needed services in
every community.
resent
Our
a
muscle and bone of
newspaper, a
en¬
courage
United
Small business is
PITTSBURGH, PA.
14
The Commercial and Financial Chronicle
(2334)
How to Watch Youi Investments
<
field
principles to follow
a
buying after a big rise. Urges policy of constant
broad diversification, and maintains investor must at all times
terrific rise
cline,
so
roof
every
is
I
should
stockholder
small
follow
which
rule
cardinal
first
Buy
Never
have in the
Margin.
on
past warned many,
many
people
at lectures, on
the air, and
in
Annual
Report against
buying on
margin,
and
my
the
the
more
market
the
rose
more
repeated
I
and
emphasized
warning.
My reasons
my
for
the
are
rule
sim-
very
L.vrl. D. Gilbert
is not
the rule
to be ignored
one
alas, so many people insist on
doing. Over the long pull ahead
there is no question in my mind
that the trend in the value
of
securities
is
However, during this
there
will
be
ours,
upward.
long pull
periods
of sharp
decline, such as we have been ex¬
periencing recently. The market
can get the jitters for any number
to sell
there
others who were pre¬
were
pared to carry on a proxy fight
if there was not such a change.
again, in my opin¬
ion, the soundness of our theory
that it is the duty of stockholders
This
proves
in
investments
their
watch
to
bad — something
investment service,
investment trust, or mutual fund
has not been doing. As a result,
times
good
the
and
average
independent stockholders applaud
the efforts of the new President
has
stituted
new
revived
the
policies which have
dropping fortunes of
P. Lorillard.
the
However,
inde¬
of
views
pendent stockholders have been
increasingly adopted in the field
of shareholder relations, which is
only
a
sense, especially at
like Lorillard, where
are
customers, too.
For
I refer
you
to the last
common
company
owners
and to
report
Lorillard
of
next Annual Report of
our
Stockholder Activities at Corpora¬
tion
Meetings to be published in
January.
last, so I say there is no
point in having even the best
this
stock
will
you
truly
to
you
own
a
that
so
share
in
America.
When I say buy stocks in small
amounts I open the door to my
next
rule; and
that
is
follow
a
policy of Broad diversification in
order
to
make
the
impact
of
temporary market fluctuations as
light as possible on your port¬
folio. My reason for this rule is
that
all
unison.
stocks
Let
time
do
not
cite
us
ample, and I
this
can
At
year I defy you to
investment counsellor
me an
recommended
P. Lorillard &
the
stock
Company. Its
down to
was
Even
tobacco
in
low
a
the
it
group
favored.
I
as
of
com¬
of about
hard-pressed
the
was
least
recall
Lorillard
an
vividly citing
example of a com¬
preparing to have the best
pany
possible
out
how, even in a period of a
declining market, when some have
been
cutting or omitting their
dividends, that there are many
others who have actually increased
their
dividends
their
to
stockholder
Here, again, let
ample. Two years
relations
at
demonstrated
dividends
after
earning
been
have
stock¬
cite
me
ago
an
ex¬
Avco Man¬
Company was going'
wringer. What was
many
of Avco's prob¬
the
causing
lems?
Continued
losses
in
the
Crosley and
Bendix
divisions
brought the passing of the divid e n d.
By
constantly
asking
questions at the Annual Meeting
to
yvhich divisions were in the
"red"
shareholders
and
manage¬
ment alike moved to
protect their
joint interest and the great losses
were
stopped when the divisions
sold.
were
This, in turn, recently
the
resumption of a
permitted
These
steel shares.
which
ties
value
cut
There
or
when
a
the
a
icies
passing of a divi¬
Congoleum-Nairn.
In
few years, when Con-
resumes
is
dividend,
probably make
for
up
it
certain
and
declines, and
fairly con¬
stant.
Unless
things get much
worse, they are likely to remain
fairly stable in price.
suppose we had followed
policy of taking a loss by
selling our Avco stock because
my
President
in
way
referred
to
mention of Lorillard. On Nov.
6, the shares, in the face of a
fast-dropping market, reached a
high of well over 25. In fact, on
one
bad day a few" weeks
ago I
recall with
a
smile that it
was
the
only stock to reach a new high
that particular day. Yet Lorillard
is the kind of stock which almost
any
investment service
speech
Public
of
Women
ness,
year ago
dividend
would
not
by
Mr.
Foundation
Women,
Gilbert
for
and
Shareholders
before
Economic
the
in
Expect
I
investment
New York City, Nov. 6,
of
Busi¬
1957.
now
passed?
have
we
believe
in
the
We
equal¬
why
you see
broad
diversifica¬
tion, not only for safety in growth
have
principle
the
cancer
best
was
scare
for
reasons
the
is
to
cer
Why? Because the canwas compelling the to¬
companies to do a lot of
scare
that they > never
would have done otherwise, just
as wartime conditions bring about
research
discoveries
have
which
normally
No
by-products
research.
have
knows
one
what
result from this
may
divisions
New
which
formed
would
would
never
or
made.
been
either
about much later than
come
be
may
day
some
may
bring bigger profits than tobacco
Since
itself.
tobacco
no
one
tell which
can
will have the
good fortune to pick the research
<
capital, but for equitable divi¬
dend
is
return
the
wise
his
thing
he
too.
You
investor
investments
that it
see
who
as
looks
some¬
should
watch,
not
for
f them all rather than too much
&
of
one.
be
assured
j
-
>
Report
important document
the
is
studied
be
Annual
Re¬
stockholder, you have
right to question management
the
the
on
a
the
of
content
annual
re¬
the Annual Meeting. If
not find sufficient in¬
formation in the annual report,
ask your question. Pertinent and
proper
questions include:
How
much money
was
spent on ad¬
vertising /last
year,
or
which
divisions are operating at a loss?
port
at
you/ do
You'll
will
find
be
that
Soss
Mrs.
I
and
asking these questions at
1958 Annual
the
Meetings as we have
The battle for full
past.
disclosure will be fought at more
and
more
Annual ; Meetings
of
American
corporations over the
ahead as the stockholder
movement
by leaps and
grows
years
bounds.
The
/
third
final
and
important
of information is the Post-
of
is
asking
will
should
the
man¬
for.? options,
dilute
stockholder
or
important feature to look for.
Many states now make cumula¬
voting mandatory at corpo¬
rations which they charter. North
tive
is the latest state to do
Carolina
Incidentally, I might mention
so.'
here that
a
The
post-meeting
renewed attempt will
be r made in the next session of
Congress to eliminate mandatory
cumulative
voting
at
National
report
should
include the following: the vote for
and
against proposals made by
management
or stockholders, what
arguments
were
for
and
against these proposals, who asked
questions,
what ' the
questions
the
what
and
were
answers
werp
should
also
include
criticisms and suggestidns^made
from the floor of the meeting by
given.
It
interested
if
see
The
owners.
suggestions
these
more
adopted by man¬
agement, the less the chance of a
fight.
proxy
which
send
are
make
company in
stock does ndt
post-meeting report,
own
a
the
the
If
you
out
management
aware
the fact that you want one.
//
of
; /
'
J%
Join Reynolds & Co.
'
■
.
.
•
/
..
(Special to The Financial Chronicle)
r
'
SAN FRANCISCO,
Heusner
H.
Calif.—Cyril
Thomas F. Slack
and
have become affiliated with
nolds
&
Street.
Co.,
Both
Rey¬
Montgomery
425
formerly with
were
Walston & Co. Inc.
1
•
;
S
1
■
■
.
.
•
Banks.
With Walston & Co.
your
(Special to The Financial Chronicle)
I urge all of you to let
Congressman know that you
opposed to this provision of
are
the
Financial
Tell
him
Institutions
want this
you
Act.
investor
protection continued.
i
Importance
of
Note if the
Director
Holdings
SAN
/
FRANCISCO, Calif.—Ger¬
ald G. Elmore has
of Walston
joined the staff
Inc., 265 Mont¬
He was formerly
Company.
& Co.,
gomery Street.
with Bailey. &
in
the
directors own stock
company,
own.
See if
have increased or
While
we
are
the subject of
on
unexpected, I remember one year
when
President
former
Diefendorf
Charles
Marine
Midland
of
Corporation, the great New York
holding
company,
told
me
at
lunch after the Annual Meeting
that
all
of
horrified
cepted
Salt.
been
in
the
At
ac¬
Inter¬
time
the
low in price and every¬
was
out.
way
had
when he
ago
thought that salt
one
of
friends
directorship
a
national
stock
his
years
Since then
was
the
on
all know,
demand for
industry has
we
course, how the
in the chemical
increase in demand
well
done
Salt stock
with
over
that
our
voter
an
active
the
of
interest
corporation
stock.
There
in
^<
the
in
take
affairs
which
he
three im¬
portant documents with which he
must be familiar.
The most
the
proxy
pany.
To
statement.
owner
Lastly, when reading the proxy
statement, be sure to ascertain
whether or not there are any in¬
dependent proxy resolutions be¬
ing presented to the stockholders
statement of the
must
There
action.
their
will find that such independ¬
i evolutions
seek to
provide
ent
LETTER
TO
In
most
for
you
'
well
read
are
".ViJ
THE
cases
Keller Adds to Staff.
(Special to The Financial Chronicle)
- ,
Ernest W.
Fraser has joined the staff of Kel¬
ler & Co., 31 State Street. He was
formerly With Paine, Webber,
BOSTON,
Mass.
—
Jackson & Curtis.
r
EDITOR:
The Greeks Had
Chronicle reader, who is a
a
Word for It
teacher of Greek, finds error in use
"Mega Opolis". Mr. Narveson believes the cor¬
word Mr. Dickhuth should have used in his Chronicle,
of the term
rect
Nov. 14 article
on
impact of urbanization is
Editor, Commercial and Financial
"Megalopolis."
I read the "Commercial and
com¬
informed
the
many
proxy
things
Chronicle"
nancial
even
as
a
with
Fi¬
interest
petty investor and as a
teacher.
I
was
struck
by
the title of H. Eugene
Dickhuth's
article
[Chronicle, Nov. 14] en¬
titled. "Economic Impact of Mega
Opolis" and have this comment to
make:
The Greek adjective for
"ereat"
is
feminine and netiAlso, the base of
the adjective is megal. The com¬
bination which, I believe, the au¬
thor aims to produce should have
been "Megalopolis." In a similar
for masculine,
ter, respectively.
Chronicle:
Greek
important of these is
become
Co.
corporate
must
are
now
previously with Harris, Upham &
International
He
owner.
is
Henry Montor Associates, Inc., 134
South La Salle Street.
He was
have
we
the past decade.
well informed
and
Schwartz
■
111. — Ivan'It.
connected With
the Board.
off
adoption and practice
principles I have just men¬
tioned, the shareholder must im¬
prove his education in order to
a
?
■"* f
CHICAGO,
decreased over
stock, and do not wish to own a
part of the company, owners have
a
right to demand that they get
After the
become
With Henry Montor
(Special to The Financial Chronicle)
and how much
their holdings
the prior year. If there are among
them directors who do not hold
of the
but to
his management
so
if the management is
asking the owners to give- up the
protection
of
the - pre-emptive
right. :
Cumulative
voting is another
they
the
what
juvcolui
a
the purpose of selling his shares,
see
are
statement
to
read
.company
winner, here again I recommend
policy of diversification within
the industry itself.
Own a little
scrutinized
be
auditors
can
proxy
be
equity,
and, if you did not have
them, to buy, in the usual small
an¬
proxy
presence.
agement
them
amounts.
owners
which
the
on
the
the
the
as a matter
of
only through election
ratification by the stockholders
also
that
of
one
adequate
in
is
The
cancer
holding
for
Meeting
It
that
One of the reasons that
has been given for dumping your
contention
should
law.
industry.
our
•The second
to
these
among
Remember, auditors
right to be present at an
no
their
is
be
This
Annual
pected generally happens. Once
again, let us look at the tobacco
securities
asked
owner
if
sec
or
It
not
report.
least, is to expect the
unexpected. I believe the unex¬
owns
of
ihc
The Annual
source
elected.
means
scare.
most
questions
statement
to
follow, and which is by
tobacco
the
of
of
nual
Unexpected
the
last
The
which
the
Educa¬
Federation
American
was
izing dividend. Now
upon
*A
tion
a
Now
ui
just mehtioned.
*
in
disclosure at all times
Shareholder Self-Education
the
the
a
operation.
should
.
the
divi¬
passed
reasons: why
many
every
their income continues
other dividend passed or cut.
Meeting, and the scornful
\Jll\Z
t
Therefore, we believe that;
Meeting Report. If the owner is
Independent auditors should be
unable to attend the meeting ;in
elected by the stockholders so
person he should
want to know
that they are responsible to each
what went on at that meeting.
and
have not had drastic
some
another tobacco company's Annual
which
a
or
risks.
stock, chain store securities
food company shares
bacco
increased and it is because of this
will
find
we
important
at any
Annual Meeting is that dealing
with the auditing area.
Owner¬
ship of stock is a business risk.
Losses due to bad auditing pol¬
along. Every¬
one
had over-bid and competed
for them. On the other hand, to¬
example,
at
One
series
news came
salt
dend
are
of such an
in
most
weeks
dividend at Avco, making up, for
turn, in
goleum
all, if
corporation may need to husband
its funds, but there is no reateon
why the management should not
be
willing to share in the cost
the securi¬
are
fallen
have
recent
over
little bad
ufacturing
through
as
ex¬
last
show
14.
in
move
specific
cite others.
a
who
mon
When
your
holders.
Diversify!
de¬
they have had a long
remain
stationary,
or
decline,
pure
I urge diversification in
investment portfolio to pro¬
tect your capital I am thinking
right so that you are in a position in addition of the necessity for
to ignore these market fluctua¬
a
better than average amount of
tions. Therefore, even when mar¬
dividend protection also. Even to
gin requirements are relaxed the
me, it has been quite astonishing
rule
of no
margin buying still this past summer to'pick
up the
applies. So when you buy stock, "Wall Street Journal" and find
liver
pre¬
market
one can predict the
market rise.
Instead,
a
had
bacco
Many Dividend Increases
will
whether the market is up or down,
but insist! that your Broker de¬
can
one
a
power after
no
post-meeting
period
no
of
of
problems, we
feel we have the right to expect
-that top executive compensation
also be reduced, so that the man¬
agement shares with the stock¬
holders in the period of austerity.
no
of
in¬
has
and
house
details
in small amounts, over a
of time, irrespective
of
First
dend has been reduced
Lewis Gruber, as he
cleaned
ui
port. As
the
a
.buy it
as
stock.
because of business
omitted, or which may not be
helped launch an popular even though the divi¬
policies of the prior dends may appear reasonably safe.
management, which helped bring, -Last year and the year before
about a change in regime, because
were
no
times to buy copper or
on
errors
stocks in the United States if you
cannot afford to own them out¬
the
it has had
We
more.
attack
of reasons—illness of
a President,
of a tight money policy, or
period of international tension.
No
one
can
predict where the
bottom
will
be
these
during
periodic1 swings
downward,
or
how
long the downward trend
in
even
stocks. In addition, we
on common
did
of Lorillard,
as,
American
take
you
I have
own
buy shares of corporations which
and
a
loss. Of course, we kept
since we do not take losses
have told
would
is
if it might go
as
Just
the
the market, even
on
bottom
the
in
survival
stock,
buy
dict
Urges importance of stockholder
j
soliciting mate¬
mention only a few
I shall
subject which we consider
the .most important, when looking
over the proxy statements of the
several corporations in which we
Rise
on
follow
to
companies, after
have
The
rule
investment
to
further.
education, with particular attention to the proxy statement,
annual report, and post-meeting report.
'
Buying
though it looks
and against
"expect the unexpected."
From
of
best
survival, including warning against buying on margin,
for his
;
r
-
of the
Abstain
never
Stockholder spokesman offers the investor
;
■
Another
and Democracy"
to look for in the
rial.
doing about the problems fac¬
ing it.
LEWIS D. GILBERT*
By
Author, "Dividends
j
{
!
is
|
Thursday, November 28,1957
...
meeas.
mesale.
meffan
coining process we can call the
greatest city in the world "Ne¬
cropolis," the city of the dead.
B. H.
Northfield, Minn.
Ttfrtw
TO
10S7
NARVESON
1
,<>
Volume
186
Number
5694
.
.
The Commercial and Financial Chronicle
.
(2335)
to
New York Port
•'
Authority's
Problems and Progress
•
■
^;i
:'iJA
*
■,.
By AUSTIN J. TOBIN *
•
n
■'
Executive Director, The
Port
of New
York Authority
A .I;*
»iiv
New York Port Authority head condemns
?lV
what he terms
Tobin recapitulates what has been done
bi
make
to
port's labor force and
'
to promote use
.
Over the past three
Z
.
Seaway, having lost the fight, but not the double penalty of
nonself-supporting seaway toll structure.
|
h
has
progress
been
great
years
made
in
Port
the
of
New
York.
quate
The
mands of the
can
in
New
York
and
promotion of the
the
port and the development
its
trade.
This
struggle
—was
commerce
work
of
port
ac¬
against
of the Port
one
Authority's
assignments when it was created
by the two States in 1921. In 1957
our
an
Commissioners
budgeted for
expenditure of nearly $800,000
for
this
tures
a
will
Port
of
meet the
de-
and faster
work
for
and
these
amount
our
purposes
to
expendi¬
in 1958
over
$900,000.
The promotional part of these
activities are designed to attract
commerce to the port by
assisting
shippers, brokers and forwarders
with their problems and
by en¬
couraging them to ship via the
ships
are being torn
and of improved -cargo handling Port of New York. We cannot do
i-r/down and lre- equipment.
this work alone. It must be a
rV ' ; ■
• -vy//
;
joint
placed V by■■ effort and it is encouraging to see
•/modern strucSelf-Supporting Rental Yields % other civic and private agencies,
tures designedThe encouraging thing is that such as the
recently formed Joint
r/ to speed the all of.; this Port. Authority.cbn- " Committee for the Promotion of
t"u r h-ar0 u ri d struction is
proceeding >on /the the, Port of New York, take their
i'
of
new
and basis of rental policies that make-* proper place in this
program.
t
The rivalry for port trade, the
new
•
>
v
-
wooing; of potential shipping
cus¬
tomers and the pulling and haul¬
,/workmgs
port
areas
being
oped
Austin J.
Tobin
the
.
of
1
j
new
and
Terminals
constructed
meet
to
ments of the
new
and
meet
the
to
truck
being
require-
are
ships,
^ling equipment,
ices /
to
the
han-
new
container
serv-
other
many
new
combinations of truck and rail and
..sjiip services.
??>This comprehensive
program inof an en-
eludes the construction
tirely new and completely modern
pier system along the two miles
of
the
Brooklyn waterfront from
Brooklyn Bridge to Erie Basin
the
und the construction of
docks
and
and
—
Elizabeth.
is
program
reflected
that the Port
or
on:
it
in
the
fact
Authority has spent
committed'$51,000,000
actually
•
new piers,
along the
Hoboken, Newark
The pace of this
terminals
jersey Shore
since
our
meeting
j'the laps
.
new
of
the
facilities
taxpayer's/, Our
are*
rented
at
rates
devel-,which yield rentals running from
demands
continued trend
deliveries.
are
handling techniques
cargo
the
cannot dump our losses back into
con-
ditions. ^>N e:W
here
in
-
May, 1954. Over-all, the Authority
has spent Or committed itself to
a
6*2 to 8% of
And
by
our
total investment.
total investment
I
-mean
will total $150,000.000, of which $109,000,000 has
already been spent or committed.
Now, too, the City of New York
has begun to implement its plans
by the announcement of the construction of
lyn for the
.
Mitsui
Line
Holland-America
new
on
pier in Brook-
new
a
and
pier
the
here
the West Side.
Nothing is
the
future
more
of
improvement
our
of
encouraging to
port than the
terminal
opera-
tions and cargo handling efficiency
which is being achieved by our
piers
new
and
minals. Our
waterfront
ter-
piers in Hoboken
new
•
handling over 510,000 tons anliuaily, an increase of 168% over
1954, the last year the old piers
in
were
constant
use.
And
the
American
our
commerce
flow
of
new
and
encourage
the
tonnage through the
ac-
New
|.
a
York
talk
.
by
Mr.
Chamber
of
1-
,.
Tobin
«
.
before
Commerce,
1, 1957.
,
the
Nov.
Great,
Avenue
agencies,
plugging the virtues of.
automobiles, soap and cigarettes
It
have
a
doubts
—
it is
I
•
a
along with the
we
of
two
of
the
life,
the
hand.
them,
in
thinks.
I
The
what
wish
scientist
every
it
to
Meet
on
to
the
Know,
of communists
The
served
or
old
man
were
needy
a
was
com¬
that
was
who
a
radio
had
views.
own
of
,
There
are
agents.
press
two
One
is
only with making mon¬
ey and to that extent he will per¬
to find
Press
or
elected,
concerned
suade
Wants
be
Einstein
groups
his
client
which
will
get his
they really think, what
is really going through their minds
because of the profession of press
agentry.
Whenever
I
hear
a
Youth
should
Congressional inves-
our
answer
for his
out what
scientist
our
Republicans
in the full
inance.
me
of
as
a
press agent and
knowledge of Einstein's
gullibility:
public
affairs,
proceeded to use him as a vehicle
were
But it is difficult for
years
commenting
phases
enjoyed
tremendous influence/had
suddenly;
gone sour with the public and lost
his sponsor./He attached himself
to talk with every one
me
Democrats
commentator
serious
possible
of
them, really get at what is going
through his mind. I have come
reluctantly to figure they are . on
top among the men aspiring for
leadership, the men seeking dom¬
for
whether
or
pletely out of his sphere.
Carlisle Bargeron
times, moneywise more than anything else, and
your correspondent has a deep in¬
terest
1
par¬
great Einstein,
was
the
witch-hunting
is
are
whether
purpose.
good.
These
the
various
11 g a t i o n s
two
This
so
the
whether
Sputniks,
are
going hand in
not
the
retiring fellow. A few
all
an
The
like
remember
very
on
press
agentry.
I
are
Russians
is
talking
before lie died he
age
in
are
age
the
that
we
agent.
press
that
scientific
whether
when
it is words put into his mouth
by
some
apparent
particular
that
say
behind
years
ticular scientist
vival of which
I
the
because
me
scientist
a
wonder
sur¬
what
worries
hear
five
and
about the
to
scientist thinks.
Roosevelt, the
has*
competitive
Madison
relation
a
>name
other
to
attract
group
anything
say
attention
and
recognized.
are
those
In the
who want
to
yield influence and not having
standing to do it directly, like
to work through some gullible fel¬
low who through trick or fate has
attained the standing.
the
or
Face the
and the cereal company in Minne¬
sota to ship via the Port of New
Nation,
paper
,
.
This is to be contrasted with the
the
City
is
South
American
publicity for the
^Getting in
it, attracting at¬
named into
newspapers,
is an inviting
proposition. Heretofore, the scien¬
tists worked quietly among them¬
selves. They had their academies,
their awards. They got their rec¬
ognition from their fellows. They
were quite satisfied to be acknowl¬
edged
by
them.
Their
fellow
scientists knew their accomplish¬
tention,
port.
,
Field
Offices
in
Here
offices
have
in
Here
this
Abroad
and
country
Cleveland
redoubled
and
their
field
our
Chicago
efforts
to
promote the Port of New York in
an
effort
petition
to
offset
which
the
com¬
new
f
City rental policy-
expect
from the St. Lawrence Seaway.
New York's import and export ment,
inaugurated
by
trade to and from Western
previously referred. This lease reCommissioner
on
getting
ones
the
today
we
may
passed
them
by
word
of
1899,
is
Hackley
only
|
If
the
non,-sectarian
perparatory
school
boys
for
in
the
Westchester
area.
A
of
graduate
Dartmouth
College,
Mr.
Symmes
Laurence M. Symmes
has
motith.
served in various capacities in tho
satisfactory way Dartmouth
Alumni
Association,
strutting .public piers on a give- ly 37% of the port's exports and of living: to be looked up to by including the post of President
away basis by putting a cei ing on 24% of our imports. We have one's associates in a particular of the group. He is currently
his rental formu a which will limit therefore established two Eu¬ endeavor, medicine, for example. Treasurer of the First Unitarian
the rental tc 6Vi% of his current
But comes the "scientific age" Church of Brooklyn, N. Y.; ha.j
ropean trade development offices,
cost estimates, rather than 6V2%
in upon these fellows. been
one
in London, which will cover bursting
Vice-President,
Treasurer
of actual
cost.
Under this new
the
British
Isles,
Scandinavia, They see Professor Quixote making and director of the investment
policy, which now replaces the
statements to the press and being firm of P. W. Brooks & Company,
Spain and Portugal, and the other
sound rent formula used, the taxin Zurich, which will be respon¬ interviewed, for a couple of hun¬ Incorporated for many years, and
payers of the City of New York
sible for our trade contacts dred dollars, on a news TV or has been director and officer of
will be underwriting the terminal
radio
program.
And then they a number of companies financed
throughout the other Western Eu¬
Vincent A. G. O Connor of
operations
here
of < the
con-
Holland-
America Line to the tune of about
half-a-million dollars
such
face
a
a
That
year.
deal should be made in the
of
the
uniformly self-sup*
rents which have been
for the
facilities
is
a
Port Authority's
mark of its impru-
dence and its public
ity.
irresponsibilThe history of municipal pier
and
in
the
coast
here
other
in
cities
New
York
ropean
up
and down
that
the
public
„
will
continue, to
not
•/
fices
P^t deficit
pier
monuments
of
Operations.
such
a
policy
have
offices
sup-
The
are
in
both
been
will
be
of
rep¬
these
selected
and
The
and
expenditures
American
eastern
field
think
in
of
efforts
this
the
highly
flow
through
of
our
in the steady decline of New
of America's foreign
year,
general
cargo
tonnage handled through the Port
Continued
on
page
29
Bush
them and saying
you going to let Teller and
get ahead of you?
You
up
to
science
in
school
didn't
Here, sign on the dotted line
and I will make you
It
is
a
by the P. W. Brooks organization.
than any
Sutro Bros. Branch
of the population,
segment
studied
you?
alert press agents,
frequently inclined to
are more numerous
other
"Are
very
ever
am
running
commerce
Last
the
the
and southern ports is evi¬
York's share
have
was a
whom I
opened about the
necessity for these
competitive
This
of¬
first of the year.
trade.
•
countries. New York's
resentatives
dent
demonstrates
Europe
amounted in 1956 to approximate¬
-
obtained
—
*From
The
in
,
construction
hold
business.
we * are
*
the kind of savings
can
av heavily
become
coasts
that
age, having apparently
survived the age of the economists
which came in with Franklin D.
Symmes Elected By
Hackley Trustees
porting
that
Gulf
Admitting
scientific
to.jts
Export
Line,
which
these piers, reports that
the efficiency of their cargo handling operations has
been
improved by at least 25%. These are
operates
and
of the News
By CARLISLE BARGERON
or read him in a news¬
interview or a magazine
What we need these days is the
article, I am not quite clear that truth from
counting of your own production
scientists, now that
he is speaking his mind or is doing
or service costs. In the ease of the York rather than through Balti¬
they are being given so much at¬
Brooklyn piers this includes also more or/ New Orleans—and vice- something shocking in accordance tention, what/ they
really think,
with
what his
press
hgent has not
the full amount of taxes which the versa. Meetings with traffic
clubs,
just headline catching phrases
City was receiving on this prop- special bulletins, motion pictures, advised.
supplied by press agents.
There are some public relations
monthly magazines and intensive
P™0'!
acqi^UMbjrthc personal sales efforts are all part men, as opposed to press agents,
Port
$®2°'"00.,a of the job. Last year the Chair¬ who advise keeping your mouth
Year which the Port Authority
»
shut. But mostly the gentry, both
man of the Port Authority, Donald
voluntarily pays to the City,
relations men and press
V. Lowe, accompanied by mem¬ public
A look at operating results of
bers
of
our
Port
Development agents, thrive upon getting their
this self-supporting rental policy
The
election
of
Laurence
client's name in print.
M*
staff, made an extensive • trade
will show that for the nine months
Now it so happens that the "age Symmes as President of the Board
trip
soliciting
through
Brazil,
ending Sept. 30 our Port Authority
Trustees of Hackley School,
of science" having broken sudden¬ of
Venezuela and Colombia.
Their
marine terminals had net operattour, which was aimed at attract¬ ly upon our scientists, they have Tarrytown, N. Y., has been an¬
ing.^revenues of $3,387,000, After
nounced.
Mr.
been besought by a hoard of pub¬
amortization and interest charges ing the trade of those countries to
Symmes has
the Port of New York, brought licity men telling them the great
°f $1,686,000 they had net revebeen a Trus¬
them in contact with government parade of scientists is on and that
nues of $1,705*000, on a total Port
tee
of
Hackofficials,
business
leaders
and they had better get in on it, at a
Authority marine terminal investfee of $100 a week or so, whatever ley since 1941.
shipping representatives and re¬
merit of $81,600,000.
Founded
in
ceived a great deal of favorable the traffic will bear.
include in any sound business
'
are
the Atlantic
last item of cost, engineer-' are no more aggressive than those
jng, administration, financing and of us who try to persuade the
overhead that you would have to machinery manufacturer in Ohio
subsidizing . a
current loss on its pier system of
$3^2 to $4 million a year, to say
This entire program of the port's
nothing of its prospective losses
reconstruction will be completed on such deals as the recent Holby 1963.
land-America lease, to which
I
•
ing between competing ports along
every
port
reconstruction
program— operation of piers by the Departpiers, waterfront terminals, utili- ment ...of Marine
and
Aviation
ties, rails, roads, dredging, fill and where the record will show that
channels—which
Ahead
in
rate struc¬
tures that discriminate against us
York may be assured therefore that we will have waterfront
piers
force
the
New
physical reconstruction of the Port
of New York. Obsolete and inade- terminals which
'
tangible progress that is
being made in improving the wel¬
fare and dependability of our la¬
selling of the advantages of
shipping through New York and
of the port, and declares
Washington
The
.
bv J
From
Improvements
tive
:
.
Force
promotion and protection—the
"the real tough nut" that still must be cracked is
to check
slow cargo drain by
eliminating discriminatory rail rate differ¬
b'ib
entials. Cites Pennsylvania's
10
opposable views and points out
IH'f
that other competitive rail lines "are
actually, seeking to lower
"ish't1
their
rates.
." Is willing to accept the St. Lawrence
.
Labor
of
New York
iim/
.
and
for the
Authority self-supporting at rental yields running from
% to 8% of total investment, to improve dependability of
j jj.*'
obsolete
of
Port
js
the
modernizing the port's physical
plant has cleared the way again
an
advantage in differentially lower rail rates on
export-import cargoes" permitted for competitor ports. Mr.
M-
in
seen
dilapidated piers that clutter the
of improvident cities.
waterfronts
bor
"artificial
bflS
be
15
sales
MIAMI
BEACH,
Fla.
at 1048 Kane
Sutro
branch
—
Bros. & Co. have opened a
Concourse^ay Har¬
bour Islands under the direction oi
Irving Wolf.
famous."
talk
with
almost
The result
bound to get a lot of\
Now Sam Watscn Co.
impossible resistance.
is that we are
alarmist talk from the scientists
talk
and
designed to hit the hea 'linfes
not infrequently having/no
LITTLE
ROCK,
Ark.
—
Sam
Watson, Hall Building, is continu¬
investment
business
ing
his
Sam
Watson Company,
Inc.
c.3
16
Financial Chronicle
The Commercial and
(2336)
than 512
well
*s
'liic muck rriarKet's
promis¬
ing rally bumped into a new
Presidential illness this week
ers
selling at a 10 to 12basis,/United
s only around 7-times,
mostly
because
its
profit
margins
issues around wnere
rare
oy
proiits.
biscuit lead¬
otner
are
NSTA
umes-earmngs
STREETE
the
and the payment
covered
Where the
THE MARKET... AND YOU
By WALLACE
%
sales for the first three quar¬
ters of this year already have
naven't been
National
favorable
as
this time
The difference
that short-cov¬
was
N. S.T.A.
United has been
The biscuit
of new financing which has into line.
kept the stock restrained, and panies generally fare
ering
Notes
as
But
Sunshine.
and
working rap¬
that, in short order, cut prices eclipsed the total figure for idly to "automate" its oper-,
back sharply in a subdued all of 1956.
like
its
But the good ations
competitors
version ot
the'1955 "heart news is tempered
by rumors and bring the profit picture
attack" break.
Thursday, November 28, 1957
...
.
well
and
The
were
.
,
defensive sections when stock
damage.
.
■
when overall business declines
bound that undid most of the
FOR 1958
....
■
com¬
and bargain - hunting. hence one of the better val¬
prouueed an immediate re¬ ues in the "aircraft" section.
NOMINATING COMMITTEE
membership for the Nominating Committee of the
National Security Traders Association for 1958 is:
Edward R. Adams, Clement A. Evans & Company, Inc., :-•* V
Atlanta, Ga.
*'
•
.<*..• •
Edgar A. Christian, Suplee, Yeatman, Mosley Co.,
;
Incorporated, Philadelphia.
Ralph C. Deppe, Edward D. Jones & Co., St. Louis.
./
.'
Elmer W. Hammell, First Securities Company of Chicago.v
John C. Heeht, Jr., Dempsey-Tegeler & Co., Los Angeles.
•
Alfred F. Tisch, Fitzgerald & Company, New York- ;
The correct
tf
•"
While
wasn't
f.:
the
£
sure
initial shock
plane shares generally
fully vulnerable to pres¬
when selling occurred.
market
ing
kets,
as severe as
cloud
the future
over
defense needs aren't
favored
F i
r s
were
in
>
/
BOSTON, Mass.—The Annual Meeting of the Boston Securities
Traders Association will be held on Thursday, Dec. 5, 1957 in the
;
recent
The business meeting and
Harvard Room of Purcell's Restaurant.
also be¬
election of officers will start at 5:15 p.m.
mar¬
National
1
SECURITIES TRADERS ASSOCIATION
BOvSTON
going is rough.
Stores stocks
throw
a
the
among
Store Issues Favored
This is another illustration of
that what happens when emotion
two years
ago, it did serve to takes over, since the nation's
quite
definitely
are
^
and
going to
American Stores no strangers just when hopes were-start-; evaporate overnight.;
to the new highs list,
W. T.
ing to arise that the year-end
Grant in this section is both
rally was about to get under¬
Some of the well deflated
.
-
"
%
%
issues
%
Basically, the economic
hardly depends on a
single individual. Neverthe¬
less, this is the fourth time
scene
the
President's
has
illness
brought emotional selling into
the
deflated item
a
way.
stock
market
more
dour than it
this
and
time the economic
picture is
was on
any
of the earlier occasions.
Further
The
Testing Ahead
new
advance
pressure
could
materially the date
were
able to settle for
above
as
well
an
as
in the
minor losses in rough market
yield bracket. At recent prices
periods since they had been its return was
nearly 7% and
under pressure for so long.
the issue has been available
Anaconda, usually grouped in at a more than a one-third,
the "copper" section with the
trim from its high of the last
rest, is one of the more di¬
couple of years. Sales are ex¬
versified of the metal operapected to increase this year
dons, including a promising over last and
earnings are
new
venture in iron ore in
projected at a moderate in¬
Canada. It was able to stand
crease.
The financial picture
its ground well, having fallen
is strong and
the dividend
from a peak of above 70 ear¬
record is now past half a-cenlier this year to the low 40's
tury of uninterrupted pay¬
and
apparently discounting ments.
when the industrials will test
much
their October low since it is
copper
of
the
bad
-
average ; one
the
news
shade below 420 had
a
Sunbeam in the electrical ap¬
Rec.
are
the
cut back hard
general
run.
along with
U.
S.
To¬
range of
for
all of
a
around 15 points
coincide
time
as
with
Then>
of the
n^Q^nted
those
"ro
the author only.]
those of
years, Edward J. Opper, J. B. Maguire & Co.,
Inc.; Daniel L. Quinn, Schirmer, Atherton & Co.
Governor,
Leo F.
year,
lately
R.
JV Reynolds,
hovering near the low, since With Daniel Reeves & Co.
only lately joined
(Snoqini to The Financial Chronicle)
Lorillard in good action, were earnings, for the fiscal half
BEVERLY HILLS, Calif.—John
able to fight the trend a bit year were down slightly. The
G. Finch is now affiliated with
decline, however, was not be¬
more
Daniel Reeves & Co., 393 South
successfully, which
cause
of dwindling business
makes the tobaccos
Beverly Drive, members of the
lomething but from
New York and Pacific Coast Stock
heavy expenses in
of a favored
group for the
starting up a new line of Exchanges. Mr. Finch was for¬
first time in a
long while.
merly w i t h Bennett-Gladstone-
bacco
and
which have
clocks
Diversified Oil Issue
Oils
both
also in occasional
were
demand for another
particularly
new
Phillips
which,
in
will
time,
add to sales and
profits.
BOND TRADERS
note,
NASD District No. 2
food
stocks
have
also
which
lows,
a
benefited
from
recommendations.
been
J.
Best Foods
staff
yield that approaches
5% make it
one
of the
more
*
(/(
*
is
around
well
attractive in its division.
*
6 V2
on
one
a
of
the
better
dividend that is
covered
and
is
in
covers
terests
a
wide
from
subma¬
rines to ICBM work is
one
of
of
has been
William
R.
ddded
Staats
the
to
&
Co.,
640 South Spring Street, members
the
of
New
York
and
Pacific
Benjamin Lewis Adds
(Special to The Financial Chronicle)
Barnardi
is
now
111.
—
associated
with
La Salle Street.
(Special to The Financial Chronicle)
United
in
the
Biscuit
food line
is
that
another
has
above-average yield of
an
more
son
has
become
affiliated
with
Baker, Walsh & Company.
as
firm of R. S. Dickson & Company
Curtis
H.
President,
H
Bingham,
Inc.,
Angeles,
u r r
Bingham,
Walter
&
y,
a
of
the
of
investment
Incorporated has been announced.
Milner makes his headquar¬
office,
Mr,
ters in the firm's New York
member
as
Governors
of
30 Broacl Street.
Board
NASD.
Duggan Inv. Co. Opens
He
succeeds
Jo
M.
Frenc
(Special to The Financial Chronicle)
h,
ALAMEDA, Calif.—Duggan In¬
Vice-Presi¬
vestment
dent, Blyth &
Co., Inc., Los
Angeles.
Oak
1516
a
conduct
Officers
been
at
securities
are
Lowell
H.
Dis¬
Curtis H.
2
Bingham
more,
Vice - President;
M e r 1
Prince, Secretary; and Hugh H.
Tcbault, Treasurer.
A. Nor¬
were:
Benneit,
man
has
offices
Duggan, President; David K. Gil-
CommitNo.
to
business.
as
of
e e
with
Street
embers
trict
Company
formed
Elected
p a r
t
Stern,
n e r,
F. T. Pen Dell Opens
Frank, Meyer & Fox, Los Angeles;
Charles B. Harkins,
Vice-Presi¬
SAN
DIEGO, Calif.—Frederick
dent, Blyth & Co., Inc., San Fran¬
T. Pen
Dell is conducting a secu¬
Shurrian, Agnew & Co., San Fran¬
cisco.
Form Counselors
Hill
with
and
with
Drive.
He
was
formerly
Mutual Fund Associates In¬
corporated.
Titus,
Waller
(Special to The Financial Chronicle)
secu¬
been
Partners
are
George
Taylor II.
C.
Good,
Mr. Titus
LEANDRO, Calif.—Standa
SAN
a
in
formerly with Witherspoon &
Company.
Form Standa Loan & Inv.
Loan
606
at
engage
business.
Stephen
was
rities business from offices at 5053
Harbor
South
offices
to
Mgmt.
Calif.—Coun¬
Co. has been
ANGELES,
Management
Street
rities
(Special to The Financial Chronicle)
•
LOS
with
Union Security Company, 29 South
La Salle Street. He was formerly
Milner
Vice-President of the
of
formed
Security
R. S. Dickson & Go.
The election of Henry
election
selors
Joins Union
An¬
Edward
Benjamin Lewis & Co., 135 South
no
—
Verdon C. Smith, partner,
Lester, Ryons & Co., Los Angeles,
and
Van
S.
Trefethen, partner,
Coast Stock Exchanges.
CHICAGO,
Calif.
cisco;
CHICAGO, 111.—Royal H. Peter¬
variety of in¬
nuclear
Gosline
jeopardy at the moment.
General Dynamics which
ANGELES,
nouncement has been made of the
t
LOS ANGELES, Calif.—William
hold its 32nd Annual
North Michigan Ave¬
Henry Milner V.-P. of
Elects New Officials
LOS
NASD's
(Special to The Financial Chronicle)
The
Petro¬
CLUB OF CHICAGO
Monday, Jan. 27, 1958.
nue,
m
Wm, Staats Adds to Staff
Interesting Food Issues
neglected by and large,
holding in a fourPart of the allure in the case point range all year. The com¬
of Phillips is that in addition pany
has been holding its
business
level
to its giant stature in the
comfortably
pe¬
troleum field, it also is orom- high and is expected to show
a
moderate improvement for
inent in atomic
research,
the fiscal year over the
uranium
pre¬
processing and exotic
fuels. All this and, at recent ceding period.
Its yield of
leum
several
Manning Co.
one year, Albert Crosby, F. S. Moseley & Company;
Newman, American Securities Corp.
The Bond Traders Club of Chicago will
Midwinter Dinner at the Sheraton Hotel, 505
Los
this
Secretary, Richard E. Murray, May & Gannon, Inc.
Governor, two
better than
"Chronicle"
Secretary, Clive B. Fazioli, White, Weld & Company.
Corr.
»•:
peater in posting new highs,
list
Treasurer, Frederick V. McVey, Childs, Jeffries & Thorndike.
carried well into the 440 band.
would represent 1,650 shares.
The issue has only carved out
McVey
the following
Vice-President, Wilfred G. Conary, G. H. Walker & Company.
Meat
7% yield in Swift
pliance line. Its yield is around & Co.
The stock lately has
against the
low
3% been available at
The market now is wide open 4%
nearly half
bracket returns of Westings
for any type of action.
of its 1956 peak despite good
house and General Electric.
si:
chances for improved earn¬
Its growth over the years has
ings results for the current
; As happens so frequently been
steady. In fact, as one fiscal
in market
declines, even is¬
year.
sues
favored for days, such study points out, 100 shares
\The views expressed in this
as
recently as 1944 today
as Lorillard which was a re¬
article do not necessarily at any
V.
President, Alexander W. Moore, New York Hanseatic
Corporation.
.
packing shares haven't
v
widely accepted that such a gest.
had
any
sustained market
>3
testing is more or less inevi¬
play in a decade and are also
A bit of attention was betable. It hadn't been expected
eligible for inclusion in the
until
early next year in view mg directed at the neglected "neglected" category, a posi¬
of the fact that the rebound items in major groups such as
tion that, contributes to the
from
F.
Wilfred G. Conary
The Nominating Committee has submitted
of officers to serve for the
coming year:
#
$
firms have had to di¬
Alexander W. Moore
Investment
&
formed
Avenue
Bancroft
securities
Stanley
with
President.
at
640
in
engage
a
Officers
are
Davis, President
and
business.
M.
Treasurer;
to
has
Corp.
offices
Merl% Prince,
Vice-
Volume
186
Number 5694
.
.
.
The Commercial and Financial Chronicle
(2337)
industrial production up to that of
Our Secret
Weapon Is
>
Trade and Investment
By BENJAMIN F. FAIRLESS*
World's
I
Poverty
Our
avers
have
we
-
Prosperity
What is needed now, I believe,
is to find more ways to export the
productive system to
political and economic ad¬
vantage
of
the
Free-; World.
the
out:
"
(1)
dreds
costs
r
,
"prosperity cannot endure in
our
of millions
not
are
live
in
poverty";
collective
We
.This
is
critical
a
how to facilitate
on
in
time
his-
'
security
can,
/
I
World.
the cold
war
weapon
all
in
Leaders
government,
education and international trade,
are
well
equipped
discuss
That
trade under
prob-
lems that face
Out
us.
their
secret
ism
of
and
ment
deliber-
is trade —
system of capital-
«
aid
technical
and
For
company's
calculation
in
n™ve-s*ec* an addl~
ll0*lal $100,000,000 in expanding
Jre
and
improving the original facility.
U.
S.
A.
and
the
thousands
of
who
gained jobs. That
country has experienced the tan-
gible results of American capitala*
this
is.Jh?
uncommitted
peonies
s*
and recomThe American corporation is the
mendations
Some months ago
I had the best device we have yet found for
which
should privilege of acting as Coordinator channeling
investment
abroad,
profoundly of a Committee of Citizen Advis- American business has a large
views
come
affect
the
world
On
in
the
crucial
months
ahe^d.
Let
briefly the balance
Free
has
World.
taken
In
on
sheet' of
the
economic
recent
There
is
nothing we need to do to stimulate that desire. It is an innate
weeks, it
heavy liabil-
some
ities.
Whatever the full military
significance of the Soviet Sputniks may be. I have no doubt that
they have done damage to the
prestige
of
the
United
States
What
thus
We
of
out of
our
abandon
nations in
any
the
Kremlin
the
Russian
locked
the
same
is going
Catching
v.diciuiig
old
of
to
would
with
race
if
the
unthinkable that the free
allow
this to
the
our
accelerate
is
tiJ
in
the■.
is
war
the
commit
to
in
masters
realize
But
a
efforts
Communists
the
cold
cold
War.
people
In
dominated
munists
was
extent
of
by
thc
~aa
44th
vention,
«
■
York
«.
City,
calls
p.
or
for
capital
.
j
Nov.
world.
In
the
collective
on
ment,
private
and
past
business
a
security,
trade,
invest-
activities
total of $20.4
billion.
No one knows better than those
in foreign trade that we should—•
in our own interests—seek to expand this mutually profitable and
beneficial trade. It is in tune with
our long-range foreign policy ob-
ves and immediate economic
g°als*
Desirability of Private Investment
" te "vestment
But> 11 \s in the Productivity
generated by foreign investment
£ Pnvate fpltal that American
f
..
.
.
building eoonnmir ctrpnath
5
in
thp
economic strengtn in the
feasible
is
far
Private investment carries with
it
the
competitive
viduals
which
so
spirit of indi¬
energizes our
abandon
our
to
economy
keep
private capital abroad.
the
principle
Com-
this
industrv
substantial
a
profits
into
has
the
of
dynamic
has
part
business.
plowed
of
its
Out of
,
.
j13*? c^n £>overbm,ent investment.
And, °f course, private capital, in 'Vestment does not increase the
1<?ad on the American taxpayers'
shoulders. Indeed, to the extent
)ve ca.o extend the flow of
Ceri^'taxoavlr can"^" 'retaxpayer
American taxpaj-e, can be re-
selected
In
•
these '
of
-
American
J
abroad.
areas
all
may as*well recognize that
are
barriers in the way of
expanding the flow of private in¬
vestment abroad.
These can only
there
be
if
government and
business each will accept its part
in a long-range effort.
overcome
Foreign
nize
and
areas
accept
Communist
ments
nations
that
billion
-
and
we
non-
invest¬
by American business
are
of direct benefit to the individual
citizen and the national economy.
We can in all conscience tell
the
world
that
^n!^,ani
country is
investment
in
made
never
of
purpose
for
any foreign
Pointed Vice-President of Rock-
the
^ell-Gould
an
of
arm
also send
nations
to the
over
of
diplomacy,
our
the
Chicn^o
IBA Announces
Convention Speakers
who carry with them the
and managerial techniques
women
skills
to
promote and
WASHINGTON, D.
conduct modern
46th
business.
Annual
Investment
contacts.
your
But,
I
the
at
Today, some 50,000 Americans
directly engaged in foreign
trade, all with
common
aims,
hopes and aspirations. I'm sure
that they have been doing what
they can to tell our story overseas
Bankers
The
—
of
the
Association
Hollywood Beach
__
1-6
Hotel,
Hollywood, Fla.
In addition to the address by
Robert H. Craft, President, The
Chase International Investment
Corporation, wholly-owned foreiSn financing subsidiary of the
are
to
C.
Convention
of America will be held Dec.
Person to Person Contact
them to do
of
^raduat^
a
of Notie Dame
and
men
—
is
Hp
UmvSsitv
he
me umversiiy 01 1Nolre uame.
we
Am¬
more
bassadors of Business
Incorno-
Str^r^^
with the Midwest Stock Exchange
undeveloped
world
Lake
Tranter was formerly associated
n
,
addition to increasing investment
as
Comoanv
^ted159^67
influencing religious,
T
Tranter
Thomas
by
claimThe Kremlinpann^sifnnorf
What
^
t I sm proposing is th&t in
urge
Chase
more.
Manhattan
Bank,
N.
Y.,
President of the Association, and
point to write letters and talk to the inaugural address by W. C.
their customers and friends about
(Decker) Jackson, Jr., First
American hopes and aspirations— Southwest Company, Dallas, inthink of the impact on the world! coming President, the following
The
support your personal ex- guest speakers will participate in
If each
of
planations
will
of
them will make it
and
win
tons
letters
a
the program:
can
give
supporters
more
than
The Honorable Donald M. Flem-
the
ing, Minister of Finance for Canada, Ottawa;
John
H.
Stambaugh,
Special
propaganda
from
Kremlin.
To
fullest
the
extent
possible
brought into
operations
abroad.
By this means they will
be accorded an opportunity to obnationals
should
American
Consultant
corporate
the
President
to
workings
this
way, American business
join in partnership with gov¬
yet without either in¬
vading the province of the other,
George S. Trimble, Jr., VicePresident-Engineering, The Mar¬
tin Company, Baltimore.
can
ernment,
contribute
and
the
to
building
strength
economic
Chairmen of national IBA
not
the real wealth of free nations.
reports.
I
A
Municipal
wealth that cannot be be¬
stowed, only earned by deter¬
mined self-action.
noon,
Forum will open
on Sunday after¬
the Convention
Such
nations
strongly
beside
defiance
of
can,
with
their
own
then
can
in
us
moral
law
prevails.
New
William
elected
President
of
the
meet
prior
the
to
Antlers
25-Year
organization's
officers
11th
at the
a
Friday.
Cramblet
has
become
associated
with W. E. Hutton & Co., 50 East
Broad Street.
He
was
formerly
a
Vice-President of American Funds
<
includes 43
Ray G. Dotlore Willi
Charles FinkHarrington —
with Hayden, Stone for
i
Murch & Go. Inc.
mem¬
(Special to The Financial Chronicle)
CLEVELAND,
William
have been
50
on
Partner,
and
over
installed
COLUMBUS, Ohio—Thomas E.
bers, three of whom—Herbert G.¬
Bell,
be
Distributors, Inc.
Michel, Secretary.
now
will
Alexander
are:
Vice-President:
John
P.
Treasurer;
Winifred
Rouse,
officers
(Special to The Financial Chronicle)
Restaurant.
Other
Hogg,
morn-
Thwas Cramblet Naw
was
Club of Hayden, Stone & Co. just
annual dinner held Nov. 21
each
With W. E. Hniton Co.
Wehrheim
J.
will be
there
sessions
Thursday, Dec. 5, and the in¬
coming Board of Governors will
;
•
and
on
of prog¬
ress, share our hopes and plans
for a peaceful world with justice
where
1,
ing, Monday through Thursday.
collective
courses
Dec.
Convention
stand
any aggressor.
They
self-determination of
future
corn-
mittees will present their annual
but
mean, a
ler
Eisen-
hower; Vice-Chancellor, Vanderbilt University, Nashville;
Richard S. Reynolds, Jr., President, Reynolds Metals Company,
Richmond;
system.
our
In
be
firsthand
at
serve
of
C.
Dottore
with
years.
has
Murch
&
Ohio—Raymond
become associated
Co.,
Inc.,
Hanna
.
members of the New
York Stock Exchange. Mr. Dottore
Building,
Boettcher Adds
also must recog¬
us for
what we
est pool of industrial ability, skills
as well as capital, is not in government but private hands. Thus,
research,
methods
_
-
help.>.
can
must continue to remind the
to
Staff
was
to The Financial Chronicle)
DENVER,
are, a country in which the great-
come
in
G. Thomas
been ap-
things' where
business
The club
We
—
recently
Moreover, our government
provide guarantees, loans
private investors with a shar¬
ing of any loss, and I feel that
joint investment of private and
public capital should be tried in
25-Year Club Elects
,,
has
to
In
addition, private American
capital can join more readily with
private capital in other countries
improve-
ments
,ri.1..r.1..
Hayden, Stone Co.
products,
new
products, expanded plants,
and the highest standard of living
8% of
ELMIRA, N. Y.
Tranter
*
more
desirable than government aid.
Of Rockwell-Gould
should
only
wherever
private
back
of
,
ernment
as
Security Must Go On
capitalism,
in the
.
already has been at
the
® Free World. .Private investment
and
America has grown to its great
industrial stature because in ap¬
is,-1957.'
nsp
industry
and
the
creative power of free enterprise.
Today the
one
and
neonle to
ment in the world today is Ameri¬
can
N^mai F-^eiffn^Tra^e' c>£New
hands
more
niorp
The time has come. I think, to
recognize that the greatest potential force for economic develop¬
pro¬
greater
the
nn
aid
within
bounds,
supplement it to the fullest
possible with the invest-
Of
ment
Even
number
170 million
number has swollen to
—FT"
into
must
and to
by which
the world's population.
the
government
denying that they
1937 the
in
collective
plying
no
in
convinced that the United
am
health
shot.
is
imnPnvA
and
fiscal year, in contrast to the total
of $7.9 billion spent by our gov-
„
the
hope
security costs are
temporary. They must go on.
But
it
is
necessary
for
the
most
have made great advances
their free-
wav
LTne
of
it
of
States
that
will only
to
war
nor
war.
G. T. Tranter, V. P.
that our govern¬
move
economy.
I
they have said they hope to con¬
quer the world without firing a
There
rtnp
fhp trojnjnf? of
Collective
We
Kremlin
This force
capi-
possible without
going broke in the process.
fact.
in
machmery
i
every
suicide.
arms
neutral
and
industrtelizldThan o™s"
much
measures.
this
the
spur
the
.tpnrim d
trair^,11?S
them. This
It is
arms
standoff in
to
preserve
,c Hllt
-
likely will have the effect of outmoding a hot war between great
powers.
In the age of missiles
and the hydrogen bomb, to start a
fess
American
that
f less inausiiiaiizea man ouis. business enterprise can make its
Tha* ls to.get more tools and most effective contribution to
making to
defense
our
stalemate
the
to
prove
that
club
happen.
President
Free
i
Th_rA
nations
applaud
and
the
of
Communists
into slavery and to
big nations into submission.
A
be
can
doms and to enrich their lives.
get the lead in arms, they
use
it to freighten small
support
security
exploit, but to
our
nations
move
development
must
shell-game
struggle for
holding
xioiamg
and
ana
arms
For.
war.
can
trade
talism do not seek to enslave
on
up
the
in
would
International
the
cold
skills common to free enterprise
and for the benefits it provides:
greater productivity, better working and living conditions and
greater indiyidual opportunities,
and the plowing back of a reasonable part of the profits as is the
Practice in our own business,
abroad provided
nations
Soviets is necessary as a deterrent
to
course,
World.
people
doors
old naked
same
power
were
of
we
suring
smugness,
seen
in the booting out of
popular Marshal Zhukov, that
behind
own,
essential,
Economic
the
job calls for the tools
.
American
with the
up
have
'
is
must be a two-way street.
develop-
concerted effort.
a
Moreover,
•
and
liv-
of
The
buy from us and be forced to buy
spirit
a
superiority, and we must
join more actively with the free
—the
it
of
government in winning
we do not,
these countries will be unable to
born of
the
standard
(and catch up we must!), ,ranked with military might in as-
must
we
their
elsewhere.
essential
For, to catch
Soviets
help,
nations'of goods and services. If
closely in
were
to
productivity,
buy from the overseas
countries increasing amounts of
defense.
common
These
ments.
is
do
outcome
struggle and it can play a
major role in partnership with our
work
that
the Free World have been drawn
more
raise
And
ledger,
developments:
complacency, and the
together
their
ing.
two
been jolted
have
must
we
increase
On the asset side of the
are
situation.
urge.
throughout the world.
however,
a
ing desire among the peoples of
the world to improve their own
examine
us
in the
stake
war
trip taken by the Committee to 18 countries I became convinced that there is a great surg-
com-
merce
-
the Mu-
on
tual Security Program,
of
course
Ben jamin F. hairless
the President
to
ers
p
Capital-Flow
promptly to
increase the incentives for private
investment abroad by providing
more
equitable taxation of foreign business income.
,
nationals
in unde-
veloped countries.
\
Foreign trade may hold the key
to the future of the Free World.
ation wi 11
,
Everyone benefited—the country,
the company, its
employees in the
Trade
competitive enterprise—
by capital invest-
accompanied
v,*.
win
can
weapon
our
in poverty.
respect proved correct, but in
But
own.
our
en¬
hundreds
ment in from three to five
years..
by means of a secret
Our Secret Weapon Is
the
serious
we
cannot
where
example, 1 know of
an American
company which in¬
vested $75,000,000 in developing
an
industrial facility in
a
Far
Eastern country in the expectation
of recovering its
capital invest¬
This
convinced that
am
to
I
of the world's total.
tory—a time of crisis for the Free
prosperity
world
aro
measure.
capital out-flow.
37%
or
a
already exporting the
American productive system, in a
through private American corporations, play a major role in
winning the cold war struggle. Business is urged, through its
foreign contacts, to tell our story overseas, and suggestions are
made
in
of millions live
points
private capital
our
dure
world where hun-
a
(2)
temporary, and (3) that
America's
.to win the cold
by capital invest¬
The former U. S. Steel head
ment and technical aid.
V
secret weapon
a
to wit, competitive trade, accompanied
should
ment
Threatens
.
Mr. Fairless
to
I believe also
American
Chairman, National Foreign Trade Convention Committee
President, American Iron and Steel Institute, New York, N. Y.
war;
Barriers
the United States in 15 years.
17
Colo.
—
William
F.
Scott has been added to the staff
of
Boettcher ^and
formerly in the trading de¬
partment of J. N. Russell & Co.
Company,. 828
Seventeenth.Street, members of
Albert E. Aigeltinger
;
j
Albert E. Aigeltinger passed
°n
earth.
Even
the' proudest it is in their self-interests to im- the New York Stock Exchange. He away at the age of 73 on Nov. 20.
boast of Mr. Khrushchev is that" prove their climate for private in¬ was formerly with the Denver Na- Prior to his retirement he was an
tional Bank.
officer of Bonbright & Co. < - - '
the Communists can bring Russian vestment.
The Commercial and Financial Chronicle
18
in
Bank
Dime; Savings
The
The Board
of
Brooklyn, N. Y.
National
.j
Directors
of
State
N.
J., announced
meeting,
bank in regular
Loranger, Jr.
the borough, or the ocher tnree
was
elected a
Long
Islnd
counties,
to
hold,
Vice- Presi¬
$1,000,000,000 in assets. In fact it
dent.
4
is
the
only corporaton of any
Mr.
Loran¬
kind with headquarters in any of
ger joined the
the four Long Island counties to
the
and
York
New
relinquished the
presidency as of Jan.
Committee.
of the Executive
John
r
Baker
Mr.
Beauty Roses.
ciation
Vice-Chairman of the Board, con¬
tinue
Chase Manhattan's senior
as
officers.5.
"This is
..
.
Baker
Mr.
banking
his
began
Trust.
service, he
career
World
I
War
joined Bank of Manhattan in 1919
as an Assistant Cashier.
He was
Donald
W.
appointed Vice-President in 1920,
in
1927
and
elected
President
Sherman Gray
Brown
Board Chairman in 1932,
capacity
that
in
ing
Chase Manhattan
t.i
York
of New
Nov.
on
office
■
Bank
a new
office
the bank's 76th
New
Greater
York and
in
opened
be
to
52nd Street
the
rapidly expanding Grand Central
and a half.
All types of banking and trust
services will be provided.
Managing the new office will
be Serge j. Hill, Assistant VicePresident, Randolph S. Merrill,
Assistant Cashier, and Charles W.
Seibert, Assistant Cashier.
area
appointment of
Schmid,
W.
Donald
John
the
21
Nov.
on
J. Schmid
John
Prestley E. McCaskie
J.
in
Brpwp, Sherman Gray and Prest¬
ley
McCaskie
E.
4.>.
depts.
*
Vice-Presir
$s
>
J.
also-
was
,
Vice-
Assistant
Granahan,
;
banks, has been
of the
President
appointed Trust Officer of SchroTrust
der
\
It was also announced that. Max
Stolz, John L. Lynch; Philip. H.
Company.;.
•'
•
;•
#
#
t
Chairman
Times
the
of
Square
the
bank, announced on Nov. 26. Mr.
Wood
succeeds
Adolph
Zukor,
Harold H. Helm, Chairman of
who
■<
continue
will
the
of
a
Wood
became
credit
Chemical
Bank
associated
of
in
He
1919.
314%
it
John
Brooklyn,
Secretaries;
and
Assistant Treas¬
Assistant
Burgis Coates,
urer.
J.
Baker, Chairman of
Stewart
Manhattan
Chase
of
Committee
Executive
the
York, announced
on
Bank,
the
New
Nov. 22 that
he would retire at the end of the
as
year
bank,
officer of the
an
would continue as
but
member
a
of the Board of Directors.
The
announcement
i
issue
bank's
the
»
new
s'i
$
if
pany,
Inc., has been elected a Di¬
of
rector
Trust
Manufacturers
Company, New York, it was an¬
Nov.
nounced
27
by Horace C.
Flanigan, Chairman of the Board.
Mr. Sargent has been active in
the electric power industry for
as
a
News,
staff newspaper.
may be sure," Mr. Baker
"this decision has not been
reached without a genuine feel¬
"You
said,
ing of regret that I am terminat¬
ing, after 38 years, my official
duties with our bank.
It is, of
it
,
The
directors
the
Company
of
clared
extra
75
cents
stock,
New
York
cash
has
de¬
of
dividend
share on the capital
50% increase over the
per
a
50 cents extra cash dividend voted
course,
such
1958, to stockholders of record at
not easy to discontinue
a
long and active associa¬
However, the future of the
tion.
bank
today, both in terms of its
and staff, rests so
firmly
in competent
and
able
management
hands
that it is with
a
feeling of
complete assurance I shall
quish
I
prosper
Mr.
will
confident
and
grow
and increase its sphere of
usefulness
and
influence
years
entirely
am
bank
the
that
relin¬
responsi¬
'day-to-day
my
bilities.
in
the
ahead."
Baker
2nd
Street, Brooklyn, N. Y. "With
this new addition,"
Mr. Hooper
said, "the bank wil be operating
six
been
member
a
of Chase Manhattan's senior man¬
agement
of
Bank
Bank
Mr.
of
and
pany
of
group
in
the
Manhattan
the
1955.'
Baker,
since the merger
Chase
With
who
Manhattan
had
the
merger,
been
Chairman,
made
Bank
became
will
not
to
stockholders
or
sell
to
them
be
have
arrangements
for
the
them
buy for
Corn
office will begin in the very near
future,
is sched¬
completion
and
uled for early 1958.
The
Lincoln, founded in 1866, is
seventh
largest savings bank
United
the
of
sources
with
States,
re¬
tn
Mr.
office
The
of
Assets
,
of the
National Bank
New York,
with
Siner
of
stock
effective
"
■
solidation
merged,
The
13.
effected
was
con¬
under
National
Bank
and
Trust
Company."
the
will
have
capital
000,
divided
of
date
con¬
consolidated
into
outstanding
The
stock
of
$560,-
5,600 shares
it
it
Fitchburg
Worcester
Fitchburg,
Ohio
Citizens
Toledo, Ohio, apthe shm^s
recommended
as
oa
of
dividend
terly
,n«
stock
quar¬
cents
40
by
per
share.
2
be4payable
will
dividends
of
shareholders
to
record
pany,
Douglas
.
Nov.
common
of
.
14
outstanding
par
of
Bank
the, sale
new
(number!
—
135,000
value $10).
to
of outstanding
the number
$20"par"value'shares"
capital stock from $1,500,-
bank's
000
Stockholders
Bank
of
of
the
National
Washington, D. C., and
of
transfer
stock
and surplus
to
consecutive
70th
bank's
bank's
the
since
fourth
dividend
is the
dividend
stock
the
founding
r\
mu
-j
be
to
T -ust Company,
Cleve and
branch
established
a
Heights, Ohio,
Ohio,
Shaker
at
known
is $20 per
of
nn
stock with
a
par
value
Unsubscribed shares may later be
W.
the
T.
Vandoren, President of
Liberty National Bank has
elected
an
Executive
Vice-
pp oximately $102,000,000,
^elleChairman
share are being offered.
available for public
proceeds
will
be
bank's
.
^
in-
w s
.
Board"
SSp'
i!!!,:0?
d F. Florence, Chairman, Ex
the
of
anc* Jame^ ^T
A^nnGp!-?
-
»
.
sub-
representing
fclrights were being mailed
to shareholders Nov. 25, and provide for expiration date of Dec,
11' ^"ance of the stock dividend
and
completion of the increase in
capital
stock
will
effective
be
the
44
formal
approval by
Comptroller of the Currency.
upon
proposal for the increased
The
capitalization was I0v6n in the
Nov. 21 issue of the "Chronicle
2233.
page
C.
John
"
if
if
who
Macleod
recently
resigned as Cashier of the Casper
National Bank, was appointed
Cashier of The American National
of Denver, Colo.
In
making
the
,
announcement.
received
used
4
^
offering. The
from the sale
to
increase
the
mL
a stock dividend The First
Security Bank of Idaho, National
Association, Boise, Idaho, in¬
its
common
$5,159,000
capital stock
$5,500,000
to
ef-
fective Nov. 12 (number of shares
outstanding — 55,000 shares, par
<h,nn4
value
Warrensville-
as
share and 37,500 shares
common
a
.
from
if
if
if
of $10 per
plans for a
Former article appeared
approved
«je Republic :Ndtad tadk
f' lexas» .on Nov. 25
pp Ya* ? an 4nYYeasY ll?
capitalization of the bank,
creased
nearly 26 years ago.
The
special meet-
a
un-;Chai'les W. Wadell, President of
The American National pointed
^9
*
NIacieod s 18 years asso$3,900,000.
ciation with the Casper Bank.
ton,
C.,
Shareholders at
into surplus which
total of capital
the
The 40 cent cash dividend is the
while
•
from
$250,000
divided profits
increase
authorized
also
directors
Liberty National Bank, Washing¬
D.
'
Bank
$1,650,000.
to
The
a
!rom 75,000
increase the
will
and
82,500
to
surplus of $200,-!
a
in¬
has
Mass.,
of $100,000 and
.'if
voted
shareholders
the
Washington.
L.
shares
on
of Nov. 22.
as
Cleveland,
of the
Trust
Com¬
Office
County
made
John
by
Warrants
declared ,a 10%
dividend and
the regular
bank
of
common stock at the par value of
$100 each;
surplus of $560,000;
and undivided profits of not less
than $552,220.
been
Mrs.
bank
Cashier.
$1,207,500'to
Aslon' ^resiclent.
%
of
nr^ed ^
will
effective
the
transit
the
commercial
the
Trust Company,
the
charter and title of The Canandai¬
gua
in
*...
...
crease
$60,000
of Nov.
as
Philadelphia,
of
and
First
and collateral loan department.
stock of
tor, Victor, New York, with com¬
mon
with the
was
worked
he
The
State Bank of Vic¬
$500,000; and
the bank as
trainee last
joined
department
Canandaigua,
common
scheduled
is
Assistant Manager
Dec.
The Canandaigua
98-year-old bank
bussed the $1,000,000,000 mark on
Nov. 25 as a result of a deposit
by
from
effective
shares,
NnvPmhpr
in
nnAn
The
merger.
if
National
stock
$1,350,000
stock
22nd Street near Indiana
on
Avenue.
$570,000,000.
over
in these columns Oct. 17, page 20.
it
the
is
capital of $350,surplus of $200,000. !
*
' ❖
;/44.
Industrial,
Pa.,
Trust
Bank.
meeting
whole share, at $58 per share.
it
of
Glandt
a
Ex-
Philadelphia,
Girard
the
Shareholders
branch
new
additional fractions to make up a
•
a
F.
has
000.
I
shares
President
bank
capital
Manager
nnmmnn
but
charter
a
Comptroller
Ben F. Eida-
Miami, Fla., increased its
Steubenv.lle^
offering to
Fractional
Bank, Des
issued
Currency.
is
000 and
mu
issued,
'44-?-•'
.
ap¬
just Farnsleigh Branch.
largest renovation
the close of business Dec. 12, 1957.
to take place
+
v
in northern
The extra cash dividend is in job
The
First
National Bank and
addition to a regular semi-annual Worcester County while open to
Trust
Company m
dividend in stock of 2% (or one the public. On Nov. 23, the com¬
pletely modernized and enlarged 'lteublen,V, <\,°
I,
share on every 50 shares held)
shareholders the right to purchase
n/j/ji + inrinl
ctnnT/c
on
the capital stock, payable on building was dedicated with the additional common stocks on fho
the
a
paper
ribbon
by basis of three shares for each
Jan. 2,
1958, to stockholders of cutting of
record
at
the close of business Mayor Hedley Bray.
eight shares of the $10 par value
*
sS
*
Dec. 13, 1957.
stock held. The subscription price
Com¬
National
of
change
'Savings Servicentres.'"
completed
been
has
The
'
been
has
Assistant
to be
pointed
Bank
it
1956, it was announced by
Leichtman, President. The
dividend
is payable on Jan. 2,
shares,
i,
«
that
announced
Y.,
broken
in
Jacob
i
a
Siner
G.
Edwin
where
Commercial State Bank and Trust
an
N.
was
solidation
of
if
if
was
Harold
and
,
National
At
it
jji
of
board
Reed
E.
Roy
office
if
and Trust Company,
the past 30 years.
came
Manhattan
Chase
of
tinuing, however, as a member of
the bank's Advisory Board.
staff in the first
the
to
message
con¬
Henry B. Sargent, President of
American & Foreign Power Com¬
'
«:■
%■
if
bank,
,
Co.,- Chi¬
of the National Bank of
office, to be erected at the south¬
east corner of Avenue X and West
in
resigned as
(number : of
v
outstanding—2,000
He
Vice-President
the
14
Nov.
January.
President.
of
•'
•
•
it
*
sale
on Nov. 21
for The Lincoln's newest banking
ground
Presidents;
sen,
*
W.
Hooper, President of
The Lincoln Savings Bank,
opened
In 1929, he
'
the
miller
.
been
appointed Assistant ViceCharles Woodard,
Richard Kerrigan and Erik Lars-
of
a
year,- com¬
a
quarterly,
since
last
Since the
bank
was
opened June 1, 1859, a total of
$324,629,000
has
been
paid
in
dividends to depositors.
•
pounded
April
1.
the
have
Madden
James
and
«
-
Trust
Vice-President ~ A charter was issued to' the
New Jer- First
National Bank
in PortJ
sey," New Brunswick, N. J., died
Lavaca, Port Lavaca^ Tex., by the
Notaryctt the age of 57. Mr. Reed office of the Comptroller of the
has been with the bank for almost^Currency. President is Howard S.
The Dime of Brooklyn has been
41
years,
was
in charge" 'of the ^Motley ' and
Cashier is A. L.;
paying dividends to depositors at
loans depUrtmeftt.
^
Pinkston. The bank has a capital
a
rate
of
the bank's Time Square
Office in 1927 and became Vice-
Stroh
*'■>'
•
it
by the office of the
Jr.
value $100).
par
'
444:'v4'' -/.viV-fyAi
-
the
shares
funds of its depositors,
them the highest return,
while
using the money for the
benefit of the community."
member
department
■
effective
the
Construction of the
the
J. Loranger,
of new stock The
First National
Bank of Milford,
N. J., increased its common capi¬
tal stock from $100,000 to $200,000
paying
Board.
Mr.
with
as
and
it
an
Advisory Board of Chemical Corn
Exchange
Bank, New York,
Eli
oper¬
111., elected E. Norman Staub
Plaines, 111.,
o i ; ;
:
•
"
County Bankers Asso¬
Essex
By
paid to 302,000 depositors in 1946.
These
figures demonstrate how
effectively The Dime has per¬
formed its functions of safeguard¬
be
-
Northern
'■
n
cur¬
tion.'-;"'
The Dime will pay to its
404,000 depositors $27,000,000 in
dividends compared to $7,000,000
❖
,
Meredith Wood has been elected
announced • that
John-1: Howell,-Vice-President of
the banks, has beenu.appointed to
the additional office of Secretary
of vtlie two banks and that Joseph
It
the past year
'
member of the Fi¬
nancial Public Relations Associa¬
"It is very gratifying that this
will
by the continu¬
Vice-President.
President
year
ing
_
City
and
It is
25.
in
second
the
a
opened
Avenue
Park
at
the
in 1955.
merger
t.:
National
First
The
continu¬
until
|
formerly
Oaklandon
State
3
The
discontinued
branch
branches
as
Bank,
under
Fidelity Bank
The former
the
Oaklandon,
Bank,
ing bank.
Vice-
ond
recognition,"
by
operated
ated
of
the
and
State
merged
Company.
offices
cago,
said.
Mr. Johnson
in 1915 with Bankers
After
Trust
banks
Sec¬
rently
historic occasion and
an
Ind.,
Des Plaines National
He * is
;■
deserves all possible
&
main
1952.
of
Southport
and
Southport,
c q-
President ; i
made,;
Ind., and the
charter and title of
As¬
and
The
as
Inc.,
Assist¬
sistant V i
after the deposit
George C. Johnson,
"The Dime," - pre¬
sented the depositor with a ster¬
ling silver tea and coffee service
and
a
bouquet of American
Rockefeller,
President; and David
1948.
Indianapolis,
pany,
Oaklandon State Bank, Oklandon,
ant Cashier in
Immediately
was
President
J.
was
e
elected
V/ *4-4
-
.
the
Eli
that
1946.
in
-
.
.
tally had been kept of the bank's
of
Champion,
George
succeeded
who
;
,
than two hours prior
more
asset totals.
Chairman
McCloy,
J.
Board;
the
H
receipt of the deposit, a close
to
continuing as Chairman
1957,
i,
For
He
institution.
duties of the
announced
New York,
Company,
stature.
President of the new
and
mittee
Corporation,
Schroder Trust
Banking
Executive Com¬
of the
Chairman
J. Henry
of
directors
The
Schroder
bank
billion-dollar
the
attained
have
of The
Newark,
following
savings
only
of
Bank
Brooklyn thus be-,
The Dime of
came
,
Thursday, November 28,1957
...
(2338)
^
''
.
...
T^e of AmericaDirectors of the
Board of N. T. & S. A.,
Bank
San Francisco, Calif., have elected
M
Bardt
as
Executive
Harry
vice-President.with offices here
th
Los Angeles headrniQrtAVo
qUolieib.
The
advancement
of Mr. Bardt
.
to this new post took place at the
Board's regular monthly meeting
held here in Los Angeles, Nov. 19,
and he will transfer here from
San Francisco to assume his new
duties shortly after the first of
the year.
S. Clark Beise, President of the
said, "Mr. Bardt will be
bank,
stock and surplus, closely associated with the Chair"
man
o£
Board of Directors,
*
*
Jesse W. Tapp, and with Execu-
capital
accounts.
'
*
President of the National Bank of
Fidelity
Bank
&
Trust
Com-
tive
Vice-President
Walter J.
Volume
186
Number 5694
.
.
.
The Commercial and Financial Chronicle
Brailnschweiger here, at our
southern California
headquarters.
Since 1951 a
member
legal
Investments
the
of
(2339)
for investors and danger of developing into a re¬
volving door policy.
"
opinion. This is a
Recognition of this need was
complicated and highly technical evident in Vice-President Nixon's
problem, but I believe some prog¬ speech
in
San
Francisco
last
ress in solving it
can, and should, month. As you know, among other
be made.
things, he asked for a five year
In some areas of the world as extension ofl the Reciprocal Trade
of
things stand today, the investor is Agreements, the foundation
Require Trade
fu
the
•
^he Advisory Council
■
Board
of
differences
ous senior
And Other Essentials
to
Directors, Mr. Bardt
as
member
a
By A. N. LILLEY*
of vari¬
administrative commit¬
Vice-President and
tees of the bank.
"
Since
1947
Mr.
Bardt has also
headed the bank's statewide trust
activities as Vice-President and
Senior Trust Officer. He will re¬
He
.:.v..1' :
originally joined the Bank
America
in
1928,
countries may
moving to
Los Angeles in 1934; in 1937 pro¬
moted
i
ment
for
-
the
banks
Southern
,V>
Bank of America
Vice-Presi¬
dent J. R. Johnson, also has been
named
Otherwise, he
c v,
says,
been
will
we
policy instead of
;
before
Never,
terprise
have only limited value unless
has private
counted upon
our
Senior
the
Trust
bank's
Officer
statewide
so
position
of
hundreds
of
of
millions
people
thro ughout
the
world.
to
Trust
This
Department activities, with Vice-
expecta¬
tion,
and
President Francis
ceeding him
Southern
M.
Smith
Trust
as
suc¬
In
his
volved
new
f
post, Mr. Johnson succeeds Harry
M.
Bardt,
recently advanced
Vice-President.
Executive
The
will
Bank
its
requirements.
an
Mr.
Johnson
charge
has
and
Trust
the
The
A. N.
t
Lilley
San Francisco in
1924 and trans¬
ferred to Los Angeles in 1935.'
speeches
by experts
from
virtu¬
ally every part of the globe.
It
to
seems
when
you
observations,
take
to
down
close
a
look
few
a
at
can
they
be
essential
points—a few fundamental condi¬
tions needed to insure the contin¬
ued and
he
moved
to
executive
an
position in the Los Angeles head¬
quarters.
>
'
'■
•
.
*
.
$
Porter
*
...
Dunlap,
--
,
Vice-Presi¬
dent of the Bank of America, San
Francisco, Calif., and Manager of
local branch died Nov. 22 at the
He started his banking
age of 62.
with
joined
the
National
America.
of
the
Bank
Mr.
of
City
Dunlap
America
1929.
in
r
L.
E.
Bank,
Los
Angeles,
charge of the bank's Main Of¬
fice,
Frank
has
King,
L.
Mr.
announced.
President,
Stone
was
formerly assigned to the staff of
the
Out-of-Town Division.
Lee
Brown
elected
was
Vice-President to
created
the
of
Security-First
Los
tered
Angeles,
in
were;
Senior
head
a
newlydivision of
management
National
Bank
Calif., headquar¬
Fresno.
Other
elections
Thomas
Roodhouse, Con¬
Theodore
H.
Ballmer,
troller,
Auditor
O.
and
Raymond
Vice-President
Garvin
in
charge of in¬
retirement
funds
and
surance,
Directors
minion
#
of
Bank
have
Toronto-Do¬
approved
an
increase in the quarterly dividend
rate from
32Vi cents per share to
35 cents per share, payable Feb. 1,
to shareholders of record Dec. 31.
An extra payment
distributed with
dividend.
On
of 20 cents
the Nov.
the
basis
1,
was
1957
of
the
practice
during
the
last
three years of declaring the extra
dividend of 20 cents per share, the
to
ers
meet
needs.
tion
would
be
distribution
for
$1.60 per share,
1958
it
was
stated.
his
a
legal
expanding flow of investment
re¬
have
cases.
been
economic
about
basis.
we
to",!
is
t'.„.
being called
the brunt of
development. It
.
NASD District No. 8
of overlapping effort by
private and public capital. Each
is capable of doing certain things
own
Elects Governors
better than the other. The demand
valuable contribu¬
the
for
is such that there
plenty of room for both.
capital
is
CHICAGO, 111.—James G. Dern;,
partner, Smith, Barney
Co., Chicago, and J. Gordon
the
people themselves and for conference, Eugene Black said: "I Hill, partner, Watling, Lerchen &
their countries, the long-run bene¬ am
as impatient with those thco-r
fits thus obtained are. enormous^
logians of capitalism'. who preach
set
their
up
businesses.
own
Governmental
For
Attitude ' -"
,
,
..r
...
t:\
are
five'such
;f.;.:v:
-
,
r
•The second essential is the need
for consistent governmental
At
the
San
recent
v
resident
&
Francisco
that private capital can, meet
the world's development needs
pol¬
icies toward foreign investors. In¬
I
alii
us'
am
with
socialism
those
theologians of
preach. that only
who
state
enterprise can satisfy dc-1
is
a
long-term proposi¬ mauds." /•/ •.
requiring in most cases,the
!" It should be clear by now what
recognition of what Successful for-; commitment—not only of. money kinds
of
undertakings
can i be
—but of time, energy;
know-how, handled most effectively by
cign investment can do in build¬
pri¬
and
manppwer.
Under the best vate
ing up a nation's economy and its
capital and what kinds can
standard of living. There must be circumstances, it is a risk busi¬ best be handled
by public capital.
ness.
Understandably,
there
is Basic
an
understanding and apprecia¬
services such as sanitation,
hesitation to invest when confi¬
tion, not only of the revenues
health, education and the road and
which a country receives from a dence is lacking about the policies
James G. Dern
postal systems are certainly the
J. Gordon Hill
a
local government will be pur¬
capital
investment, but of the
responsibility of government. Pri¬
other economic benefits accruing suing toward foreign investment vate
capital neither wants to do, Co., Detroit, were elected as mem¬
bers of the NASD board of gov¬
from such investment. Of course, several years hence.
nor
should do, the job in these
vestment
tion,
..
The
first
is
widespread
more
I
there must also be full recognition
importance of profits to the
do not believe
capital
that
exporting
we
of the
countries
can
afford to be unrealistic about this.
>
I sometimes feel that
wc
in bus¬
iness have fallen into the habit of
pussyfooting about this subject
of profits.
I don't now why we
should be shy about the fact that
private capital can flow only into
Any nation—particularly one that
has
but
recently won its sov¬
ereignty—is
of
inevitably
made
up
and
are
as
many
to
put
competing alternatives
where it
to
use.
can
and
From
the
should
be
investor's
point of view, the security of the
investment and the prospects for
profit are—as they should be—
the
primary
concern.
This
con¬
offers the best guarantee that
whatever investment capital is
cern
available
will
be
allocated
care¬
is
of
utmost
im¬
by
vacillation
about-face.
Steps toward the
greatest possible stability in treat¬
ment
of
the
foreign investor—
regardless of shifts in the internal
political winds—will add greatly
to the free flow of capital abroad.
Most
particularly, no change in
political climate can ever justify
the
breaching of
a
contract freely
entered into in good faith between
a
profit
characterized
are
and
private investor and
a
govern¬
ment.
Colonialism
nationalism
efits
world affairs.
the
economic
welfare
of
governmental revenues.
In
Saudi Arabia, for example, the oil
vate
capital is able and willing to
handle.
inevitable
The
result
needs
ination
against the
latter.
is
cannot
do
its
as
which
is wasted
is
it
H.
Os-
governors.
The following were
members
No.
of
Carl
8:
District
board
elected
as
Committee
in
activities
in
dent,
effective.
not
F.
Berrien
Benton
Detroit.
The fifth fundamental to the
ex¬
panded flow of capital abroad,
see
as I
it, is the continuing reduction
of trade barriers. Investment
go hand-in-hand;
axle and the wheel
the
that
of
private capi¬
job and public
In
mon
Francis X. Keaney With
G. H. Walker & Go.
and
they are
commerce.
of
world
the
Com¬
ST.
Free
Trade
Keaney
(Special to The Financial Chronicle)
i
Western
Market
Europe,
and
which
Area—both
of
realization
—
achieve
this
dinavia
and
the
are,
are
nearing
attempts
to
objective.
in
In Scan¬
America,
under con¬
Latin
also, similar plans are
sideration.
While
these
are
satisfactory
encouraging
degree
of
stability
has
been signs, such moves by other coun¬
industry accounts for about four- achieved under the new system.
tries in the direction of freer trade
filths of that Kingdom's total state
can have only limited value unless
Uniform Law
revenues.'
"
;
the United States does its part. If
".The third requirement for an wc do not, our foreign friends
•An address by Mr. Lillev before the
in¬ may begin to believe that our
National
Foreign ^ Trade
Council
Con-' expansion of foreign capital
vention, New York City, Nov. 19, 1957. vestment is adequate and effective open
door
policy
is
in
some
assurance
Lee
Thiel, Vice-Presi¬
Securities,
Inc.,
Harbor, Mich.; A. Jackson
1 believe most of these problems
Goodwin, Jr., Vice-President, Lee
can
be worked out if costs and
Higginson Corp., Chicago; James
benefits are analyzed realistically.
A. Swoboda, partner, Paine, Web¬
Basic economic objectives must be 1
ber, Jackson & Curtis, Milwau¬
kept in mind.
kee; and Claude G. Porter, VicePresident, Baker, Simonds & Co.,
Reduce Trade Barriers
capital
has
This historic
succeeds
chairman of the NASD
as
Under
these circumstances,
tal
Dern
trander, partner, William Blair &
Company, Chicago, while Mr. Hill
succeeds Frank L. Reissner, Pres¬
ident, Indianapolis Bond & Share
Corp., who is retiring this year
governments try to spread public
capital into activities which pri¬
a
given way to
primary factor in
change
the country in which the invest¬ has been accompanied by a
great
ment is made.
I say this
even desire on the part of the young,
though
today,
in
many
cases, less developed countries to achieve
profit is split about evenly be¬ economic maturity rapidly, and
tween local governments and in¬ for this
purpose to attract outside
vestors— and in some cases the capital. It must be realized, how¬
split accounts for a major portion ever, that the private
investor
to
arises, however, when
trade
portance to the investor, it may be
a small part of the total ben¬
only
Mr.
Conflict
conflicting groups competition between public and
viewpoints.
On
the
other
private enterprises, and discrim¬
hand, I doubt that governments
countries
which
recognize
that fully appreciate the great damage
private capital has to earn profit. that can be done by policies to¬
The amount of capital available ward the foreign investor which
for investment is limited and there
ernors.
fields.
number of
a
.
The fourth essential is the elim¬
ination
specific projects in¬
volved, but they often move on to
.
indicated
investor
operating
only are such people
Not
to
1 -P
-
arc
underdeveloped coun¬
try, he usually trains local work¬
-Profits Encourage Investments
of
bank's
very
technical
private
a
.,
I fully realize this
is an ex¬ cannot do the whole
job; it can
tremely involved field and I do do a
big part of the job. But
not pretend to have all .the an¬
everyone
should understand the
swers.
But, from the business¬ conditions under which it can
op¬
man's standpoint, it does seem to
erate most effectively. I believe
me
that
something alone these that business people themselves
lines coukl and should be accom¬ have
an
obligation to be more
plished.
aggressive in stating these condi-jtons and in providing leadership;.!
Private-Public Capital
toward their achievement.
Duplication
goes into an
'
While
$
The
it, there
sec
fully.
other employe benefits.
*
I
investor.
Calif., has been designated officer
in
As
essentials;
Stone, Vice-President of
California
considerable
When
to American markets;
•
•
of the
#
<<
sfc
skill.
increasing f low of foreign
.
Trust Department of the Beverly
Hills office from 1951 to
1955;
requiring
able to make
however, that
me,
'! capital investment. "'
Joining the Bank of America in
1936, Mr. Smith had charge of the
national
e r
velopment in San Francisco alone
produced a shelf of reports and
boiled
career
America.,In
In-
on
Industrial De¬
these
of
Confer¬
ence
Trust
of
Johnson, began his
Bank
measurable, but of
long-run importance,
ing of substantial numbers of peo¬
ple—from office workers to those
1947
career
Less
the beneficial results of the train¬
with" the ;Bank
a
or
recent months.
California Division.
D.
through added ex¬
through reducing import
ports,
of
for
in such
world
be
great
Department for the bank's South¬
;
can
foreign capital develops
in
Vice-President
,
This
access
In
.talking
(3) A procedure for carrying proceed on a sound
Private capital is
out this tribunal's decision
when an award is rendered. upon today to carry
additional industries which gener¬
ate large foreign currency sources.
in
easier
a govern¬
foreign investor.
turn
can
course
development of resources re¬
sulting from the investment. And
of
Officer 'in
when
tor
and
in¬
a
short, the United States must
(2) A recognized international consistently work toward liberali¬
zation of its foreign trade if the
tribunal to which an inves¬
course,
enormous
California at that time.
Mr.
ment and
activity
amount
Francisco, and Mr. Smith as¬
suming his new duties in South¬
ern
important, of
often
lfillment,
,.
of : uniform plies a growing return flow of
law, profit. Obviously,, the soundest
all cases of way to finance this is to provide
applicable in
disputes between
; other economic
important to the
is the additional economic
too.
The relation between trade and
-•
iea's investment stake abroad im-
comment
America
San
been
Most
.
of international
; rules
country than governmental rev¬
enues generated by private invest¬
ment.
justice.j
(1) Development
/
changes
of
with Mr. Bardt
moving to Los Angeles to assume
his new post, Mr. Johnson mov¬
ing to the bank's head offices in
Since
.
are
more
subject
first of the year,
-
there
But
effects
have been the
to
part,
our
a
place shortly after the
take
ern
u
have
in the field of trade liberalization.
directly and effec¬
can
investment permeates the whole
Generally, -1 have three things financial
relationship, among na¬
in mind which might be done to
tions. A continual rise in Amer-.
improve; this situation;.*:
the
problems
Officer for
California.
United States trade relations with
tively appeal for.
by foreign
do
we
which he
•
^revolving door"
"open door" policy.: ^
en¬
,
heavily to improve the economic
Division.
head
too.* v
-
to;
Vice-President
and
Trust Officer and in 1941 placed
in. charge of the/Trust
Depart¬
that encouraging moves towards freer trade
warns
,
fiscation * ;and
.
l.;.
„
expropriation, con¬
36
nations.
Extension!* of these
other acts: which
clearly violate his rights. He has * Agreements would be a firm in¬
little recourse when this happens. dication that the United States is
There is no international court to prepared to assume the initiative
crucial
relationship between: freer trade and -growing
profitable foreign* investment! opportunities is delineated by
} Mr. Lilley in outlining the advantages of—and in underlying
essential conditions needed for—increased
foreign investments
V 'to further development abroad. The Texas Company official
tain his
membership on the Direc¬
~ General
Trilst
Committee,
and
on * the
Trust
Investment
Committee.
.
of
vulnerable to
The
•
1
tors
of
Director,
Company, New York City
The Texas
recourse
governments alike to settle honest
Committee of the bank
/■has served
19
LOUIS, Mo. —Francis X.
has
become
associated
with G. H. Walker & Co., 503 Lo¬
.
cust
Street, members of the New
York Stock Exchange. Mr. Kean¬
ey was formerly Assistant VicePresident
of
Stifel, Nicolaus
Company, Incorporated.
&
a
,
Harold F. A.. Ludewig
Harold
away
was-
New
F.
A.
Ludewig
Nov. 17 at the
formerly
York
a
Stock
of Frederick
age
passed
of 58.
He
in the
Exchange firm-
partner
Ludewig & Co.
.
20
The Commercial and Financial Chronicle
(2340)
By HERBERT R. SILVERMAN*
on
Chairman of the Board,
Mr. Silverman states monetary
economic
and
Conference,
Finance
the way vast
and employment. This view by commercial financier
based on the favorable long-run forces said to be at work,
is
ability to meet
our
and flexible action
so
serious problems with timely
present situation would be but
even our
that
our
hydro systems direct
For the slackening of effi¬
ciency which is a characteristic of
inflationary boom is still much
The
credit
ations
climb to higher
monetary-credit
policies be adopted for those sectors of business suffering from
deflationary tendencies, and offers advice to firms on rectifying
temporary halt, a breather for continuing the
levels of activity.
Suggests how successful
a
threatened
-
rises
in
unleash¬
third
the
the
world
They
war.
the
fo¬
are
cused
upon
skies,
where
tests
of
the
satel-
"
lites, rockets
Herbert R. Silverman
missiles
and
have
strated that
we are
demon¬
at the dawn of
the space age.
But
of
our
economic problems are
piece with
a
defense
with
the
tion?
If
cope
we
boom
and
our
we
yet com¬
also laid the
a
consumption
It
for
which
investment
not
are
spent.
foundations
will lose the contest
with the Soviet sphere as surely
as if we had neglected our politi¬
cal and military defenses.
Indeed, the first battles of the
defenses,
which
forces
boom
and
and
war
reconstruction policy after it unleashe d powerful inflationary
military
economic
issues
second world
The
political and pletely
our
problems.
political
neglect
of the
problems of American business.
On the account, it is important
that we, as an industry, in our an¬
nual meeting, make a hard-boiled
evaluation of these problems and
take a long, hard look at the pol¬
icies required to cope with them.
Just what is our present situa¬
This
has
evolved
boom.
To
into
an
the
hold
in
check, lest it lead to an
old-fashioned
bust, we adopted
credit, monetary and fiscal pol¬
is
not
new
a
for
task
us.
Throughout the postwar boom, our
industry has been vigilant that the
uses
of
funds would
our
interests
whole.
the
of
the
serve
economy
as
We made certain that
a
our
funds would not be used for spec¬
ployment in
is
ing,
some
its
re¬
policy.
It
temporary halt
m
lead
to
a
clear that the outstanding need of
our
economy
is
stability.
To
achieve it, we have to reach a new
picture of strength that is
balance
a
neat-
tions
democracies and
ern
is
basically
Communism
ideological, and we
military aspect
must not allow its
laxed
and
restraints.
But
we
re¬
only a little, lest we
revive
the
inflationary
forces.
Thus
we
achieved
only partial
recovery in the rate of home con¬
The
stability.
lessons
of
will
bilizing
years
are
growth.
Yet
must not sacrifice
we
Progress
and stability
compatible goals of
economic policy.
deflation.
No group is more conscious of
That illustrates, in some degree,
and orbiting satellites to the more
the
situation
of
all
industry. its responsibilities than ours, the
mundane
tasks
imposed by the
Restriction and restraint are keep¬ commercial finance industry. Dif¬
need
to
keep our feet on the
ficult
though it is to balance
ground of mother earth. The fact ing powerful inflationary pres¬
between
boom
and
slump,
to
that America has had high levels sures under control. But they are
struggle for sound progress and
of employment and output and loosing, in various sectors, poten¬
tial deflationary tendencies that workable stability, we have done
high standards of living at a time
struction
to obscure that fact."
Let
then turn
from
the skies and their shooting stars
us
when
mass
our
gaze
unemployment
undernourishment
have
and
afflicted
the Soviet sphere was not lost
the
Polish
workers.
on
They
jested
that the Russians' Sputnik carried
a
banner
reading
"I
chose free¬
dom."
That
ideological victory
Of the first magnitude. We must
preserve that advantage.
We can
only do it by tackling and solving
the problems that confront the
business community.
-
was
Must
lick
have a business slump
slight one—in 1958? Can
we
—even a
we
an
the
problems
that
beset
and
teetering
between
that
must be dealt with.
leads
to
doubt
industry
is
inflation and
Naturally this
and
is
expect in the pe¬
riod ahead is fairly clear. Gener¬
ally, month to month, we can ex¬
pect the climate of business opin¬
ion to shift to and ffb between the
we
must be made
so
can
and
The
uncertainty,
especially when the situation
not fully understood.
What
progress.
selves
we
will continue to do
course we
will
take
have set for
so.
measure
In 1956
But it
is only the timid and the pessi¬
mistic who interpret the halt in
the growth of production that set
in earlier this year as
though
economy's over-riding concern to
shift, month to month, from in¬
flation
to .deflation
particular
and back.
industries,
think there will be
however,
more
In
I
concern
a
leading
nec¬
and
not work
has
although
others are marking time and still
others
contracting.
This varied
experience proves that now is a
time of
opportunity.
challenge to
That
over deflationary tendencies than
business is
one with which it has
had little
inflationary pressures.
This is a very mixed outlook. time to cope amidst the hectic
now
One can
pressures of the postwar boom. It
say
that the credit
ket of doubt, the pall of uncer¬
is
a
challenge to apply tested
tainty, that shrouds business plan¬ squeeze is going to pinch ev^n
further.
In the face of
it, one knowledge and the ingenuity of
ning for the coming year?
In the face of all the favorable might be justified in hoping for enterprising management so that
no more than the maintenance of
profitability can be restored by
long-run forces at work, I think
our present rate of
output during recovering efficiency of operation.
even
a
temporary slide-off in
the first half of 1958.
Essentially, management is chal¬
business activity generally is in¬
But we must not forget that lenged to take an
engineering ap¬
excusable. If it comes, it will be,
what may be true of the economy proach to its
operating problems.
♦An address by Mr. Silverman before
as a
whole, is not necessarily true The commercial finanee industry,
the 13th Annual Convention of the Com¬
for a particular company. Caution for the past several
years, has en¬
mercial Finance
Industry sponsored by
American
business
postwar boom?
after the
Can
long
take steps
that will get rid of the blan¬
1
The
York
we
"■
National
Finance
Conference,
City, Oct. 28, 1957.
New
will
It
to
as
a
and realism must not blind
undeniable
opportunities.
us
to
couraged
face that
alert managements
challenge.
to
strength
was
sapped
accom¬
The
our
significant
advances
were
and prices, not in physi¬
output. Hence we scored no
cal
re¬
significant gain in real purchasing
power.
- A
Checking into this, some econ¬
omists described it
take
with
deal
There
we
are
will
fhom
the
to
the
I
have
basically
In the
needed
Can
it?
that
can.
indicated,
the
the
to
so
ness.
.
of
business
failures
diverse influences. *
on the liabilities
many
figures
cycles
frequently lead general busi¬
Hence they are one of a
useful instruments for
bad economic weather
of
detecting
ahead. Two Federal Reserve econ¬
omists, Simpson and Anderson, re¬
cently reported a very significant
that
study of this barometer.
They found that the less pros¬
perous
companies, including those
failures, experi¬
that wound up as
trouble
enced
face up
with
their
profit
margins before there was down¬
turn in their sales volumes.
This
every
For us,
profitability, and not any
was the critical factor
determining their profit-and-
loss
is
of
loss of
in
loss
sales,
positions. With the more pros¬
companies, of course, the
perous
ebb
and
flow
of
sales
was
the
critical factor in their fortunes.
input or even from greater
in
We
commercial
,
financing
know that it is not the more pros¬
a
Some of the less prosperous
their contributions to make.;
it
suppliers of funds equipped to ad¬
vise on financing needs involved
companies alone that ac¬
growth.
have
perous
count for sound economic
.
management
needs all the help it can get from
staff specialists, consultants and
the line organization. And it needs
credit and short-term capital from
fulfill
Ji;.
little because they respond
group
of credit engineering.
present situation what is
output, or out¬
to
us
that
prise.
But
and
purchasing
:
But the
one
of input.
primarily
in
of business failures move in
is greater
economy
gains
number
tell
put of a higher quality or with
more associated services, from the
same
pres-.
resources
enterprises through the process of
business failure.
The changes in
im¬
task
real
This is seen more clearly if you
have
I
we
we
1955,
services
in
as
and
look at the less successful business
policy
problems that
period just ahead.
challenge?
confidence
as
do
input
goods
power.
expected to carry a significant
part of the load.
we
same
limited
on
scored
is
Can
cost-push
supply, relieved the
money
co¬
get it. The commercial
industry, quite properly,
finance
the
added
sure
coordinated
indications
a
would have offset the increase In
sta¬
the
clear
as
inflation.
But the problem goes
deeper, into cost relationships and
cost-price relationships. If we had
achieved greater physical output
break-water
destructive
the
will arise in the
This is
volumes
achieved still further
in wages
spiral of
without the
we can serve as a
moderate
recession.
sales
we
panied by output declines in cer¬
tain lines, we have just about held
that higher level.
•
put
That
by general price inflation
task of man¬
Behind the performance totals agement, fortified by all the im¬
opposite poles of optimism and one sees some lines and some com¬ agination, drive, genius and pathpessimism.
We can expect the panies continuing to expand out¬ breaking of administrative enter¬
essarily to
char¬
of the
most
ones—at our average yearly rate
of growth over the last 75 years*
between 2 and 3%. This year, even
pact of its enormous waves.
our¬
courage.
normal
economy.
growth in real output—measured
in
constant
prices, not-inflated
operation of all segments of labor
and
of
business, especially the
to
those
clear. We must not barter stability
for blind and perhaps malignant
our
,
periods of stress that develop even
we have high levels of em¬
ployment and output.
.'.rf •
between
ward that
them
way-to
when
,
squeeze
But
"The struggle between the west¬
easier
an
stability the
of
to take
is to make the
way
inflationary and financial industry including our
icies to restrict credit and to re¬ deflationary tendencies.
sector of it, commercial finance.
For three years there has been
strain capital investment.
And this I believe too.
If die
war
of nerves
with
the
Soviet
We took powerful medicine. As reliance on monetary and fiscal credit
squeeze, as some in our in¬
sphere may be won on the mili¬ a result, in some lines, demand devices for restoring economy sta¬ dustry fear, produces undesirable
Those three years have
tary and political fields. But the has slackened, prices softened, ex¬ bility.
effects, they can be mitigated to
last battles—the ones that clinch pansion plans have been cut back demonstrated that monetary meas¬ a
very significant extent by the
ures
alone
cannot
achieve
and
the final victory—will be waged a little—a situation that is not in¬
operations of the commercial fi¬
in the economies of the contes¬ flationary
but definitely
defla¬ maintain stable progress. All seg¬ nance industry.
ments of the economy have re¬
tants.
As Arthur F. Burns, that tionary.
To meet this in homeWe cannot sweep back the sea.
wise
economic
counselor, has building, we relaxed the restric¬ sponsibilities for contributing to¬
pointed out;
is
was-.|he
'
.
deflation?
in
there
make
Or will it prove the
inventory, and other
forms
of
risk-taking that con¬ purgative the economy needs to
tribute to excesses which produce restore stability as an important
instability in the economy. Now step toward resuming the rate of
we have to make doubly sure that progress that held in 1955?
we do not participate in financial
The answers depend, I think, on
plants that tend toward overcom¬ how we manage the policy and
mitment by the borrower.
? •
how we time needed changes in it.
Developments
in
1957
made But this I believe.
The
credit
ulation
;
wants
one
'
acteristic
economy's
our
movement
Will it produce a
verse?
';
-
multiplied^ to
That
power.
way—no
But
;
businesl^aders. Will the
forward
•
it again.
raised serious doubts in the minds
of some
triumphed in
gruelling econ¬
most
highest
hard
lines is weaken¬
powerful
world's
—
prices of labor,
final products may
over-all policy.
All
stitutions including
Commercial financing can help
Twenties,
becamj a
; We did that under the pressure
of distress
stress
the
in vital ways to meet many
business
omy run.
v
ing
timrff'of
a
and in the Forties it
materials or sponsible performance.
conflict with
These are companies that have
financial in¬ not tolerated
speculative excesses
the commer¬ in
pricing or inventory, although
cial finance industry will be ex¬
their unprofitable positions.
a
competitor may have done so.
pected to play a significant role in
Companies which have not per¬
In inviting your attention to the I think, because business, labor that coordinated campaign.
mitted efficiency to slacken/even
ctate of business, I am conscious and government refuse to face the
Tiiese are concerns of the mo¬
though a rival's tax situation may
of the fact that the eyes of all facts of economic life.
ment.
Above and beyond them, have made it
less circumspect
America are turned elsewhere at
We
have
the commercial finance industry about
problems, some of
costs.
Companies w h i c h
the
present moment.
They are them serious ones. But I believe has its normal role to fulfill. We have been
adding facilities for
trained on our we can steps to meet them. And I must make certain that economi¬
which there is demonstrable longefforts to re¬
believe, too, that the right steps cally justified needs for our funds run need and which are
managing
store peace in
will make our present situation are met.
expansion without overstraining
the M i d el l e only a temporary halt in our eco¬
In a word, we are asked to com¬
their resources.
East and to nomic growth, a breather for con¬ bine economic statesmanship with
keep the So- tinuing the climb to higher levels the caution that characterizes fi¬ ; But a credit squeeze, maintained
even
when production and em¬
viet Union of activity.
nancial institutions.
from
that
creaky, squeaky vehicle, one ever
more costly to
operate. We gave
that machine a complete
overhaul
squeeze
that meet certain standards of
is
In the boom of the late
reaches
where
It
American
too general.
we
profitable lone^ for
one
most1 often
the
vances.
an
must see to it that
spots where it
will put out the fires of deflation.
On the other hahd, at the same
time government and many.sec¬
flow
the
in output
and
business* ahead.
of
most
stress in business is the time when
it makes its
greatest long-rurl-ad¬
is not in¬
tended to brake the activity of
business generally. The statements
Of the monetary authorities imply
that there
are
some
companies
tions of business and labor will be- which should not be squeezed. It
engaged in broader efforts to con- was not intended to restrain or
tral inflationary situations—situ¬ curtail the activities of companies
Primarily
a
inexcusable slump
any
task
the
day -is
overlooked.
will be valuable in the year
ence
the
the flow of water.
policy for controlling inflation
readjustment without
be
finance to direct the flow of credit
stabilization should be aimed at achieving
fourth postwar
its mettle.
It will
Inc.
Executive Vice-President, James Talcott, Inc.
Commercial
National
But
our
Commercial financing
faces, a
Most of our companies—perhaps
challenge in the period ahead. The all of them—have taken part in
whole financial industry of which financial plans that helped some
we are a part is going to be put
companies to do so. That experi¬
Courageous Credit Engineering
Thursday, November 28,1957
...
.
But
once
their
operations lose
profitability, their growth is ef¬
fectively checked. When the .profit squeeze is accompanied by a
credit squeeze, it sometimes cuts
back
As
in
even
the
sound growth.
show,
companies were in
earnings reports
1957 many
For many,
practical operating plan.
suppliers trained and ex¬ it is this that has made credit re¬
perienced and staffed to match striction difficult to live with.
What is the solution? Clearly to
operating plans with financial
plans that do much to assure their recover profitability of operations.
To restore profit margins.
successful performance.
Then
Much of the confusion about the some higher costs can be absorbed
business outlook arises because we while they are otherwise dealt
tend to apply obsolete formulas to with. Then market expansion can
situations in which they do not be a realistic goal of sales pol¬
icy. Then the product line and the
apply.
Now I do
not deny that the level of quality can be unfrozen.
Thirties have many lessons for us. Then the ratio of overhead and
in
a
From
.
or
near
this situation.
Volume 186
Number 5694
.
.
.
The Commercial and Financial Chronicle
(2341)
/ -fixed costs to total costs becomes
Yet
tories
levels.-^
at record
5aid than done.
v
in
So
much
Those
easier,
ask
held
has
'
<
think
that
present
should
fact, that I would have hesi¬
demand
consumer
subject to management control.
To give the solution is easier
;v
debt due in
r
inven¬
that
serious problem
a
themselves
what
one
tated about bringing it up if it ought to expect to happen in in¬
2 tyere not for one thing. You know, ventories when rigid credit con¬
trols distort the picture.
Clearly,
3 and I know that some companies
in many cases,
nsive taken this course and have
.carried it through successfully.
j
".^Wje've helped
Jjglp others.
some do it.
the burden of car¬
inventory in the face of
rying
restricted
We can
credit
back in the
^
has
been passed
supply line.
This is not always
Such greater efficiency in pro¬
!
necessarily
a
year and
processing
equipment.
It
bly efficient operation,
ble
of
source
made
an
equipment loan.
Two
later it began making ad¬
vances
accounts receivable that
on
to
neered to achieve
a
have
of
1958
when, the
one level may be
expensive than it is further
saddle
"
supply line. We must be
regulation does not
that
careful
limited.
seem
then quadrupled its sales.
more
possibilities for resuming
normal rate of growth in the
half
not
do
believe
not
that
the
induce
lines
inventory,
is all to
and
a
economize
can
points
is
on
j? In
view, national policy
aimed at achieving a
readjustment with
po significant
of output and
we
that, it
means
stable
"K In such
be
no
posals
.
we
for some
heard
have
We need to
simply
would
that
iT
of sound expan¬
because
other
other.
These must, of course, be
the
of
labor can be
.curtailed somewhat by the intro¬
duction of labor-saving equip¬
ment.
Automation is sometimes
justified when it makes for a morO
productive work force by elimi¬
nating operations that induce ex¬
cessive fatigue. It pays for itself,
however, where labor is perma¬
nently in short supply or for some
similar reason is available only at
tures
Some
factory
inventories have
provided
It
in.
infla¬
basic weak¬
the
case
But
as
has
be
we
only been partial.
captious to em¬
content
the
as
impor¬
financial
of
policy?
Our
industry will respond to the
appeal of our political leaders by
acting in a responsible, statesman¬
like
thus
a
tory adequate
crease
in
further
went
and
achieved
nomies in materials
In
a
little
more
will
in
manner
all
its
undertak¬
was repaid out of a substan¬
profit.
loan
Or take another case, a company
that produced a
and
a
Association
of
meeting
and
dinner
Customers'
annual
Christmas
Monday Dec. 16 at
Whyte's Restaurant. The meeting
will be at 4:15 p.m. to be followed
on
Frank, Landenburg, Thal& Co.
has
Eastman
become
associated
Dillon, Union Se¬
curities & Co., 3115 Wilshire Bou¬
levard.
Mr. King was formerly
Angeles manager for ShearHammill & Co.
Also
associated
with
Eastman
Dillon, Union Securities & Co.
are
H. W. Smith and John D.
Mackey.
previously with
Shearson, Hammill & Co.; Mr.
Mackey was with First California
Company.
Mr.
by cocktails at 5:15 and dinner at
6. Tariff is eight dollars.
Reservations may be made with
mann
King
with
son,
Brokers will hold their quarterly
Smith
was
Max O.
Max O.
in
F.
away
Our
S.
Whiting
Whiting, limited partner
Moseley & Co., passed
Nov. 16.
Reporter
on
Governments
By JOHN T. CHIPPENDALE, JR.
is the
It
opinion of nearly all money market specialists that
the change in policy of the monetary authorities towards credit and
interest rates
means
that there is how
bull market in all fixed-
a
income bearing obligations. The fact that Government securities
as well as non-Treasury issues have reacted
very favorably to the
reduction in the discount rate, indicates there is a very different
attitude now towards these obligations than was true a fortnight
The
successful
new money raising (heavy oversubscrip¬
allotments) and refunding operation of the Treasury
adds substance to the opinions that interest rates will continue to
very
tion and small
soften and credit will
be
\
ease.
there was a sizable amount of "free riding" in
the new money raising issues, but this did not deter investors from
paying up for these obligations in order to get the securities they
need. This is a usual development, when there has been a turn for
the better, which is the situation now.
sure,
All New Issues Record
Premiums
The reaction of the money market to the
signs of a change in
monetary policy has been very enthusiastic to say the least. In the
first place the new money raising and refunding operation of the
Treasury was given a rousing reception, with the various obliga¬
tions
that
were
usdd
in
this
venture
being
very
well
received.
The 17-year 3%% bond was in very big demand, with a premium
more than
two points above the offering price of 100 being
of
registered for this obligation. The 5-year 3%% note was likewise
in demand, with a premium of over a point above the issue price
being registered for this security. The one-year 3%% certificate,
which was used to refund the maturing 3%%, was also well re¬
ceived, with a small premium being shown for this issue. It is
evident from the results of this operation of the Treasury that the
change in attitude of investors towards the money market was
responsible for the sizable premiums that were paid for the new
money securities which were just put on the market.
Non-Government Bonds Also Strong
The
improvement in the bond market has not been confined
to Treasury obligations alone. The change in sentiment towards
the money market caused by the lowering of the discount rate
has created a good demand for corporate and tax-exempt bonds as
well.
Prior to the decrease in the Central Bank rate there
several
were
stale
syndicates in both corporates and the tax exempt
obligations, and indications were that it would be sometime before
they would be cleaned up. For that matter, it is expected that the
issue prices would have to be broken. However, with the change
in the money market policy of the powers that be, there was an
ample enough supply of money around to purchase not only the
slow moving new issues but also the general run of the mill bonds
that had been on the market for quite some time.
Entire
Government
Market Rejuvenated
It is
reported that the buying in all Government securities has
improved very much, not only in quantity but also in quality. It is
evident that funds which were on the side lines because of the
tight money policy of the Federal Reserve Board, and the uncertain
action of the equity market, did not hesitate to go to work immedi¬
ately in Treasury issues with the lowering of the Central Bank
There is a very definite lengthening of maturities in many of
the purchases which are being currently made in Government
securities. Switches are also being made in greater size than was
rate.
true not so long ago, because of the limited scope of
the Treasury
Again, in these exchanges the trend is towards the ex¬
tending of maturities.
•
'
market.
to demand pro¬
time of stress, but we
settle
for
our
no
less.
"The
efforts will circle in
compass
Angell
once
By courageous credit engineer¬
ing in the year ahead, we can help
management
The
to
restore
and
im¬
new
3%% Bond Investor Favorite
3%% bond appears to be the favored issue in many
of these
switches, while at the same time new money purchases
recently offered Government bond is reported to be very
sizable. The indications are that the 3%s of 1974 are moving into
of
of a ship," Nor¬
pointed out, "is
an
instrument
of
very
small
power. But it determines the di¬
rection in which the engines,
which have great power,
shall
drive the ship: onto the rocks, or
away from them."
man
New
Without
confusion.
•
than two years
in
direction
eco¬
the commercial finance company's
tial
gress
handling and
production costs.
1
C.
Los
to
"
LOS ANGELES, Calif.—Rupert
,
It takes courage
balanced inven¬
for a further in¬
business.
Management
produced
may
Hold Christmas Dinner
the authorities were off
timing and recovery in
phasize that timing is
as
of
we
ings. But at the same time we will
accounts receivable turnover, re¬ set our compasses to sjteer our
duced the size of inventory and ships on a straight, forward course.
customer, had a heavy burden of
the same
But at
time wholesale and re¬
Would
the
rather low for the level of sales.
bit high this year.
a
in
heeded
field
tant
tail inventories have been running
a
curb
to
if
construction.
their
this
expansion on the then
metallic chemical
its compounds for the gov¬
ernment during the war.
When
the war ended it lost its principal
"run
in
manufac¬
credit. It also recom¬
mended cost, collection and in¬
ventory analyses that corrected
disparities in pricing, improved
pays
1;
company
a
called
was
also
home
case
necessary
inventory costs
inventory
two
A commercial finance company
under control.
It
is axiomatic that the level of sales
about
efforts
in
pressures
feared,
finance its
be brought
going the rounds
analysis.
election year.
delay makes it no less wel¬
Our plea for flexible policy
was'
or
one
available line of bank credit.
.
that will not bear
an
time for economic
a
come.
particular type oi motor.
It doubled its sales but could not
they require equipment changes,
by employing materials han¬
dling equipment.
that have been
cite
me
A mid-west
or
generalizations
And this is
the
or
histories.
materials
for a balanced, adequate in¬
ventory. But there are some broad
a
politics in
tionary
it through.
Let
prices can be dealt with by using
substitute materials even when
In the same way
though
laxation
lay
can
basis for sound expansion
carry
line, the demand for
that
medium-sized,
and
situation by careful planning.
When labor prices are out
can
be used to ease
capital markets
tax cut would be
task of
ening appeared.
our economy has
been to match
! We asked for that pledge last
purchasing power with goods.
It was slow in coming but
There are many companies, small year.
pent-up demand, the prime
brought back into line. But they
must be dealt with situation by
-
those
14, 1957 that there would be re¬
of purchas¬
ing power during the war created
of labor, mate¬
rials and final products are out of
line with the
general level of
that some prices
high cost.
Similarly out-of-lme
the emission
Federal
example of it was given in the
implicit pledge of the chairman of
the board of government of the
Federal Reserve System on June
and restrain the
the one
a
isn't,
statesmanship in the management
of money and credit policy.
An
com¬
.
Since
it
in the
conditions
even
if
But
should
savings
better
policy
that kind
permit
both.
have
panies
■
existing debt and for
tax cut for all taxpayers, we may
it.
high sales volumes we need stable
prices, not falling prices.
There is no blinking the fact
^
is substantial
get
overall
sion
in
omy
might commit themselves
beyond their resources makes no
sense to me.
Sound policy would
;
time for economic states¬
a
the
a
to expand.
are
check
can
prices.
statesmanship
I think that they can
government expenditure
enough both for re¬
duction of Federal borrowing and
in
best be improved by cut¬
ting costs and changing cost rela¬
tionships. But to maintain output
we must maintain sales
and for
,
that
position
An
pressure to improve profit margins
or extend them.
For profit mar¬
gins
for
us
manship by government.
That
means, for example, that if econ¬
control
a
we
Customers Brokers
To
The projects
through
such rigid
screening are
those which are
certain to add permanent strength
to our economy and strong support
for the effort of the authorities to
check rising prices,
they advance from
or more
little.
this is
that
prices.
whether
a
time
a
by business.
achieves
which
infla¬
about
downward "adjustment" of most
^
policy for achieving it,
political leaders tell
is
co¬
enlarge its facilities.
On
this
basis, objective eco¬
nomic forces select the companies
recently,
yet, in
1958 start to climb the heights
beyond the present plateau of
business activity.
ago.
-
and
goal
a
of
finances permit, it is
of the pro¬
as the one that price
tion be checked by bringing
.
this
an
5%
will mark time in 1958
Our
set
to
3
.
such
,
likely slip back
it outgrows its facilities.
proceeds to strengthen its
financial situation so that, as its
there would
vsuch
a
on
then
can
of
put
the road of
can
growth.
Without
ordinated
to
a program,
we
products
It
that
kind
It then
determines to an
extent where we will
room
its
basis.
The
progress,
sound
Eastman Dillon Firm
(Special to The Financial Chronicle)
country's busi¬
of
market,
slump in real levels
employment. Where
operations,
But practically
in commercial finance
count on our industry to act with
responsibility.
And
business, by the same
token, might well point out that
it
hit the target.
-
examples
as
the economy back on
expanding its market. As
a permanently larger
about
fix our sights
important
so
our
industry
our
them
cases,
Rupert King Joins
some
financing.
in-1957.
disservice to
a
sell
and
efficient
be
were
management
enterprise which, backed by en¬
gineered financing, can overcome
the halt in our economic growth
Once the level
sales—which
make
my
en¬
were
That is the kind of
they have done, this
long as the
as
ultimately
products.
fourth postwar
ness
company files has a spectacular
story to tell of retrogression cor¬
rected or of sound growth being
.
.
that
case
"
should
influence in all
Albert
spectacular
are
to
every
know from the indus-
us
In 1945,
company
picture, sales
$25,000. In 1956 they
modern
the
company—it should be corrected.
trial mobilization studies that with Goods extinguish purchasing
greater efficiency in the use of power at the point of final pur¬
chase.
:: present
resources we can make
When a company has squeezed
available almost overnight the re¬
the water out of its costs, prices
sources that would go into twenty
v.. to
thirty billion dollars of final and profits, it is in a position to
All of
finance
spectacular
disservice to the consumer and
loses
level of efficiency.
ex¬
$12 million.
the good so
customer is served.
is
an
can
we
If, through coordinated policy,
this becomes widespread and an
achieved.
If some
and its
substitutes is high and rising. But
this is only true for some given
,
be trans¬
can
for
the
around
acted.
when the supply of money
j
of business that
ume
always present when the
output presses upon the
resources
hoarding inven¬
adequate for maintaining the vol¬
sures are
of
do
believe, should be
Inventory, we
a
limits of available
countenance
finance
-
recession, a slump in the
that will leave some
;? resources underemployed.
ii-c
It is true that inflationary pres¬
i
tered
These
commercial
tory, speculating in inventory or
over
commitment in inventory.
proper
rate of output
rate
in
We
to' check price inflation is to
way
i
extra-eco¬
institutions
pansion program that doubled and
nomic costs.
levels of output and employment.
-
with
business
But, with the right policies cor¬
rectly timed, we can hold high
h I
eligible for loans from other
financial
down the
and
undertake sound expansion.
The
that point the company be¬
came
scious. Credit at
cial to the individual company and
-
first
The distributor
profitability
prove
cases
company
expand sales fifteen times.
At
who is dependent on his supplier's
credit
becomes
less
price con¬
result benefi¬
to the economy as a whole.
'3cd 'The
}['6ur
anticipated.
back¬
a
ground of research that promised
broad demand from
industry. It
permitted the chemical
thing, as those of us who
pleaded for greater flexi¬
bility in money and credit policy
policy. It comes from a new
Operating plan integrated, with a
new financial
plan. Plans engi¬
i?
dependa¬
a
have
com¬
found
reasona¬
and
ore
good
with
tinkering
pany
^
improved
that the company had a
cfome
-
company
called in to finance
was
duction and distribution does not
from
small
a
help them prepare for and in
A commercial finance
years
:
one
operating loss.
21
the
strong hands, with the "free riders" allotments having been taken
much in stride. It is reported that savings banks, commercial
banks, with sizable amounts of time deposits, pension funds, char¬
itable organizations and small insurance companies have been ths
very
leading buyers of the new 3%% bond.
The 3%%
note, according to advices, has been well taken by
This is in addition
certain of. the out-of-town commercial banks.
to
purchases they have also made in the 17-year bond. Equity
well as foreign funds reportedly have been invested in
money as
the 3%% notes.
The Commercial and Financial Chronicle
gold reserves, the
with inadequate
choice
American Gold
Is
Buying Price
Bulwark Against lnilation
a
gold.
ot demand for
The
of gold
after it has been raised.
V
The
feel
influence
in
gold
other
tne
w a s
ob¬
most
of
cause
vious
increase
the
in
gold hoard¬
ing. Tne Paris
market price
gold
of
the
and
mium
Einzig
j
c 0
pre¬
gold
on
ove r
n s
bullion
their
Gold
value widened considerably.
smuggling into France, especially
from Switzerland, has increased
demand
nor
confined
not
was
France,
of
But the revival
considerably.
to
it entirely on
Several govern¬
was
private account.
ments deemed it advisable to con¬
into
vert
eign
gold part of their for¬
reason
in
result
not
nounced rise in
ket
except under 10%.
Simi¬
larly, 5.1 to 10.0% price increases
To make
DALLAS, Tex.—James F. Jac¬
$35
ques, Vice-President and a direc¬
tor of First Southwest Co., Dallas,
elected
was
the
of
member
a
'
board
N ASD
of
governors. '
Elected
a s
members
of
the London mar¬
under
TJ.
the
S.
official
buying price of $35'per ouncelies largely in the resumption of
the export of Soviet gold.
The
reappearance of bars marked with
hammer and sickle during the clos¬
ing months of the year seems to
have
become
the
bullion
be
annual event in
an
connected
market.
with
It
to
seems
Soviet
the
Government's
L
d
of Ameri¬
Tend
Inflation
Generate
to
are
increase
to
inflationary pressure.
&
until
favor ot
production of -capital goods
price
buying
reconsidered
now
their
Co.,
Worth,
be ex¬
A.
Jacques
King of
Dewar
ertson &
Rob¬
Mr. Jacques is a former Presiof
the
Dallas
Securities
deht
Dealers
Association,
served
in
1953
1948,
and
chairman
as
of
NASD's District Committee No. 6.
He is
and
director of Jackson & Co.,
Co.
a
of Provident Oil
tive
impunity should be avoided
And there
at all costs.
that
higher
a
be
can
S.
U.
no
gold
price would facilitate inflation.
first
the
In
a
change would expand the poten¬
tial basis of
oiates.
Even
change
in
other
and
if
the
the
in
corresponding
a
effect
the
of
in¬
bookkeeping value
of
gold on the volume of credit,
the
expansion of the potential
oasis
inflation
would produce
psychological ef¬
fect.
Assuming that an increase
in
the American
price of gold
would be accompanied by an alla
ot
considerable
increase
the
official
United
underwriting group headed
Hemphill, Noyes & Co. on
by
Nov.
offered
26
shares
inflation
would
States
in
be
of
of
$1
publicly
value
par
the
subsidiaries
along
The view
tion
decline
in
world
is widely held in Lon¬
don and elsewhere that in face of
the threat of
a
really serious
re¬
ticular significance,
important
may
be
inclined
to
recon¬
sider their refusal to increase the
official
price of gold.
Beyond
doubt, an increase of that price
would
long way towards
bringing about a revival of busi¬
go
a
and a recovery of commod¬
ity prices. Even so, it seems most
unlikely that the official Amer¬
ness
ican attitude would change on this
matter.
For
thing, the threat of
recession
is
not
ficiently grave to call for such
measure.
There
are
a
suf¬
a
ample
supplies oftweapons in the ar¬
of United States monetary
policy- which could be employed
long before the Administration
and Congress could be persuaded
mory
change '-the
official
Price
of
210,000
with
6,014
value cumula¬
Is
other
virtually irreversible.
measures
at short notice
and when
cession l'earsv become
overshadowed- by
once
re¬
more
inflation fears.
But4t would not be easy to're¬
the
makes
whole
free
Moreover, in the
a
of Britain
revaluation of the gold reserve
and
an
ceeds
gold
case
increase in the dollar pro¬
of
gold exported by
producing countries of
Commonwealth
would
the
the
materially
reduce pressure on sterling. This
would mean that the Government
would
no
longer
inducement
to
are
inflation.
to
to
against
pressure
measures
instead
of
reinforcing
them.
The
same
that it would be
yield
its recent
Inflation
resist
to
The chances
relax
have the
<
•
American
price
of
$35 is
one
of the few remaining fixed
points
in
our
fluid
post-war
world.
Most exchange parities
have changed since 1945, and the
domestic purchasing power of all
currencies has • depreciated.
So
,
.
could be reversed
as
in
States
classes.
The
shares
being
stock, in two
remaining
43,000
offered
are
new
looked
upon
as
one
of
the
few
remaining bulwarks against runaway inflation. Althouglx its main¬
tenance inflicts unfair
ages on
and
important products
similar pattern.
a
must
be" repeated
that there
preliminary
very
findings
rough matching of
data which are difficult to com¬
upon
a
because
they
are
similar to the results obtained
in
the studies for the 'Thirties noted
earlier.
It
*
would
be
major statistical
a
undertaking to prepare
analysis for all of the
These data
the
Census of Manu¬
factures, to examine the experi¬
ence
longer periods of time,
over
to check
further the comparisons
presented in this pilot survey, and
to prepare
the combined weighted
price index which should be used
to
improve the compariso n.
Nevertheless,
the
preliminary
results suggest that this is a proj¬
the
must
facts
undertaken
be
are
used to extort
of the
the
successor
to
a
retail
drug
business established in 1898.
full-line,
which
service
concern,
entered
company,
operates
The
as
wholesale
a
drug
the .wholesale
field
shortly after 1900, princi¬
pally in the New York metropoli¬
tan
area.
In
1948
a
program
of
disadvant¬
gold. producing
inconveniences
on
countries
countries
Wages
;
.
v
*
+
-
Certainly, one of the outstand¬
ing characteristics of the last twoyears—and of the entire war and
postwar period — has been the
dramatic
rise
in
fringe
other
in
wage rates and
benefits.
Prices
determined by many factors
including costs. Under many con¬
ditions, changes in prices have
little relationship to changes in
costs.
However, increases in unit
labor
costs
perienced
the magnitude
of
ex¬
in
recent years have
irresistible pressures for
created
price rises.
Wages
In¬
wages and other labor
have exceeded by a very
costs
if
Productivity:
and
in
creases
wide margin the increases in pro¬
not to be made
ductivity in all manufacturing in¬
dustries and for the entire
econ¬
Thus,
average
hourly
earnings in manufacturing indus¬
Profit Margins
The
trial
test
as
prices
than
more
whether
to
have
been
is
costs
tries
indus¬
found
in
lows:
; •;
-
by 214%;
rose
Inclusive
1956.
increased
from. 1939
to
various fringe
of
benefits,
the
increase
is even
larger. During the same period,
output per
manhour
increased
the
48.8%.
costs
As
more
timate
of
result,
a
unit
labor
than doubled. One
es¬
total
compensation of
all employees per unit of output
in
all manufacturing
industries
recorded
to
a
rise of 130% from 1939
1956.
During the same period,
wholesale prices of finished
the
goods advanced 109%.10
Output per manhour rose 2.7%
all manufacturing industries
as compared with the rise
of 5.3% in average hourly earn¬
ings exclusive of fringe benefits,
-
in
PROFITS BEFORE AND AFTER TAXES AS
PERCENT
OF
SALES
All Manufacturing
1955
in 1956
Corporations
Before Taxes
After Taxes
9.9
5.1
2nd
10.6
5.5
3rd
10.2
5.4
4th
10.3
5.6
.1st
The index of unit labor costs rose
2.9%
the
and
index
of
finished
10.2
5.3
10.3
5.5
advanced 2.8% in
1956. For the entire private nonagricultural economy, productiv¬
ity recorded no change in 1956
3rd
9.0
4.9
and
4th
9.3
5.2
goods
1956
1st
5.4
10.3
♦1st
-
1st
9.7
9.4
In
5.0
*
New
series
SOURCE:
rities
introduced.
Exchange
increases scheduled later this year.
Quar¬
It
will
second
4.5%.11
above the 1956 level -with furthef
Commission,
Corporations.
the
rose
the
terly Financial Report for Manufacturing
Since
labor costs
average
Federal Trade Commission-Secu¬
and
unit
first; eight months of 1957,
hourly earnings in man¬
ufacturing industries rose 4.0%
5.1
2nd
prices
These trends continued in 1957.
1957
Incorporated in 1919, Ketchum
is
that:
omy.
be
added to general funds
fact
huge profits.
Administered
political football.
2nd
company.
the
and
concentration
on
confirm
administered pricing has not been
similar
We
products
a
mar¬
gins during a period of expand¬
ing volume mean that American
industry -has failed to increase
prices as much as costs have risen.;
Nevertheless, one is encour¬
aged to give these findings serious
consideration
(Parenthet-1
months.);; Narrowing profit
pare.
stock, the proceeds of which will
quarter
appears
rise
that labor costs again
in
of
excess
5%.
AL
though data are not yet available
of
for
1955, when the rise in wholesale
able
productivity,
that
it
will
it
seems prob¬
rise less than
prices got under way, the profit
labor costs and thus unit labor
acquisition of similar businesses margin before and after taxes for
all manufacturing industries has costs continue to rise.
the
company
has extended
its
The increase in wages in ex¬
All asset groups
service area to New Jersey and been declining.
Connecticut and parts of Ohio, have shown a similar experience. cess of the gains in productivity
This narrowing of profit margins with the accompanying rise in
Pennsylvania and Michigan.
is particularly significant since it unit labor costs appropriately has
Over the period
1952-56, net -took
place during a period of been- identified as wage infla¬
sales increased from
$16,923,000
sharply expanding volume which tion,12 Martin R. Gainsbrugh,
to
$28,377,000 and net income
normally would be accompanied Chief Economist of the National
applicable to common stock rose
Industrial Conference Board, ap¬
by wider margins.
from $205,000 to
$525,000. In the
Data compiled by the First Na¬ propriately has described the exsix months ended June
30, 1957,
sales were $15,594,000 and net in¬ tional City Bank of New York
9 First
National City Bank
expansion
was
begun
and
by
"Monthly
this picture of narrow¬ Letter," Business and Economic : Condi¬
;
,
profit margins. In the first tions, August 1957, p.~89.
10 Joint Economic Committee, Produc¬
half of 1957, the bank's data for
tivity, Prices, and Incomes, U. S. Govern¬
leading 1 manufacturing corpora¬ ment- Printing Office, Washington, D. C.,
tions showed the profit margin 1957, pp. 144, 148.
11/bid* p. 280
declining for eight industries, un¬ '12 For a discussion of the nature of
;
Jr.
changed for four, and rising for this problem- by- eleven economists,, see
Edwin. Sibley Webster, Jr., "only three. .The composite experi¬ Wage Inflation, National Industrial Con¬
ference Board Economic Forum, "Studies
"partner-in KiddeivPeabody & Co., ence for "the 15 industries was. a
in. Business Economics Number*56," New
has" passed'away.
decline from 7.5% in the first half York, 1957, 74 -pages.
come $249,000, compared to sales
long as the basic trend remains of
$13,711,000 and net income. of
as inflationary-as -it is at
present, $183,000
for
the
similar
1956
Most the American buying J, price • is
period.
•
'
"
. •
:.
gold. That' act has a disadvan¬
tage compared with other devices:
it
United
world*
inclined
one
substantial
drastic
the
inflation
for
cession the United States author¬
ities
in
It
based
The
excessive profits.
may be noted that Wall
apparently hasn't discov-!
ered these excessive profits if one
is to judge by the major decline
in stock prices in the past few
common
indebtedness of the company and
commodity
prices
and
other
symptoms of a business recession.
the
the
on
•' .J
not
Street
of
tive .preferred
of
ground
extent
some
do
ically, it
mean
to
data
.
relationship between profits and
Ketchum & Co.,
Inc., sales.
When price rises outstrip
fourth
largest
wholesale
drug cost increases, the profit margin
firm in the country. The stock
widens; when prices lag behind
was priced
at $8.50 per share.
sales, the profit margin narrows.
Of the shares offered,
167,000 What has been the experience
are
being sold for the account during the recent price rise? The
of three stockholders who, here¬ changes recorded in the Federal
tofore, have been the sole stock¬ Trade Commission-Securities and
holders.
On
completion of the Exchange Commission data for
offering and certain other trans¬ profit margins have been as fol¬
stock
owing tb the
part played by
the
United States in world economy.
Anything that makes for infla-*
to
x
are
An
shares of $100 par
-
yielded
Stock at $8.50 a Share
par¬
plained
most
price changes
coun¬
of the few remain¬
barriers
75
Offers Ketchum Com.
actions they will own "approxi¬
that the gold
mately 55% of the 463,420 shares
would become to be
outstanding. Also outstand¬
everywhere. But the re¬
ing will be $2,410,364 of sundry
one
spread throughout the scatter.
ect which
position
moval of
ing
in
categories of products was exam¬
ined. It was found that they were
Hemphill, Noyes Group
united
reserve .requirements
monetary devices could
neutralize
crease
in the
credit
tion of unimportant products, the
location of the 25 most important
a
such
instance,
every
that these results
sure
included in
Pancoast, San Antonio.
it easier to inflate with compara¬
easier
pri¬
at-
owing to the realization
change that would make
citude,
tries, it would
,
gold
of
that any
reserve
*
in
increase in the official
an
American
nave
strongly
rcently
quite
F.
James
Ed¬
in
did not reflect the accidental loca¬
Creston
and
Many British quarters which were
required for military and indus¬
may
N.
Fort
1
all, inflation
sufficiently strong to
discourage a move, that is bound
fears
A.
o n
liam
above
and
Over
trial purposes.
gold
a n
Freear oi Wil-
wards
prices of all Bretton Woods
vate demand for
Crockett
of Crockett &
gift would become conceivable.
a
6
Houston;
round
The revival of official and
No.
A. Gor-
Co.,
the
Doubts U. S. A. Change
mittee
were:
con¬
a
policy of increasing
supply of consumer goods
without having unduly to curtail
the
Com¬
District
S.
U.
These
to
recorded
were
don
quite
period
v
tween 81 and 90%.
gory
gift by
S. R.
free
a
the
take
1957.9
Goyemor'^}';
can-Russian relations before such
pro¬
price of gold—which is still
shade
a
demand
more
a
to-
to
would
siderable improvement
doubt
holdings.
why this
exchange
The
did
A.
S.
it
of 1956 to 7.2% in the same
in
category
except concentration ratios of be¬
a
rise,
s n a r
amount
U.
the
un¬
derwent
'
would
And
with
products
Elects J. F. Jacques
,
output
its
of
some
for
support the allegations frequently heard
in"
Congressional and in labor circles
that irresponsible pricing has led
reason
exporting
20.0%
or
"
,
France,
to
concentration ratios in every cate¬
NASD District No. 6
Western
why an increase of
the
American price is unlikely;.
the
political
and economic To raise the price of gold at a
a fficuities
of moment when the U. S. S. R. is
flight from the French franc, re-
Wages
Responsible for Price Inflation? ;
15.1
.
.
6
page
Are Administered Price
unrelenting
the
of
Soviet
is an¬
of
Europe
reappearance
to
inflation of recent months.
wage
to
price
attached
the $35 price
increased under
has
smaller
jrom
ex¬
existing
in
that
evils
the
the
the
store
who
those
of
maintenance of
.
of the advisability of gold
price fixity because present conditions are basically infla¬
tionary and "the American buying price is looked upon as one
of the few remaining bulwarks against runaway inflation."
Refers to growing conviction that it would be the lesser of evils
to maintain $35 mint price, even despite the threat of a sub¬
stantial recession, and explains how devaluation would abet
inflationary pressures and provide U. S. S. R. with a free gift.
revival
perts
conditions
Continued
alternative
between
number
The
the
Einzig arrives at the conclusion
LONDON, Eng: There has been
during recent weeks a noteworthy
is
evils.
are
By PALL EINZIG
Dr.
to
Thursday, November 28,1957
...
(2342)
22
confirm
ing
*
.
.
Edwin S., Webster
..
Volume
186
5694
Number
.
.
The Commercial and Financial Chronicle
.
cessive increases in wages as
"focal point of infection." 13
(2343)
have been more than absorbed by
the
Summary and Conclusion
rising labor costs.
The
not
!r
Impact
Wage Costs to Total Sales
on
relative
importance of
costs to total sales.
Thus,
wage
for
example,
labor
costs
5%
a
will
unit
in
rise
have
greater
a
_
•
.
.
impact
Bank
_
Price Index: The
labor cpsts is most..apparent in
connection , with the prices of
services. Thus, for personal care,
medical care, automobile repairs,
and
various household repairs
(e. g. painting, electrical work,
and repairs for electrical appliauces),
the cost is
primarily
wages. For these services,. productivity increases are not avail-
specific prices is determined
the
by
price inflation has
by the monetary
and fiscal pressures which have
Consumer, played so important a role in past
impact of higher inflations. Rather, this price rise
.
upon
recent
been caused
Services
ancl Insurance
Stocks
Labor Costs and; the
"Relative Wages and Prices: The
direct impact of wage inflation
railroad rates (with
a
50% direct labor cost) than it
would have for cigarette prices
(with a direct-wage cost of 6%).
;
It would be valuable to examine
upon
.
23
jlas
the
reflected
By ARTHUR B. WALLACE
impact
uneven
This Week
of the boom and the consequences
0f
inflation which has
5egn present in recent years. The
—
Bank Stocks
wage
There is
speculation about funds
some
banker
a
credits
the
bor-
diversity of behavior of adminis- the effect that the lowering of the rower with an amount that
tered prices and the narrowing discount rate by the Federal Re- chiefly his depositors^ funds,
is
despite the boom serve banks may have. And now
A loaning officer...of a ibank is
indicate that these price rises an official of that institution has primarily a trustee.
For every
have not represented "a seeking "hinted" that further steps might dollar* of the stbckhorder's money
Qf large profits" as some groups be taken to ease money.
; : J
that is loaned^ ten br inote* dollars
first placC, this isthesea-ofthedepositm's' funds -are ine year when the Reserve
eluded, in a loan.
Further, the
profit
margins
.
likely to
products
rises are,
(petroleum
and metal contaihers), among the
industries with the highest relative wage costs,Iron and Steel,
coal, and coke, three prices in this
if loaning officer is only too well
higher price. Since March 1955, havior. Since the Spring of 1955, anything at all is done; for funds aware that there are examiners.to
the prices of services have risen many "administered prices have must be available for the moving check up on him; and bank exammore than the retail prices of declined or recorded only small of agricultural crops, for carrying iners are concerned with-the degoods as the following tabulation advances while others have ad- the large inventories that tho. con-: positors' well being, not the stockvanced
shows:
quite
sharply.
Market sumer goods section of the econ- holders'. '
Per Cent
:
prices also have recorded both ad- omy must stock for the holiday : So it is that loans may be rev
Increase
March 1955
August 1957
vanees
and declines. '.While the trade, and for the expansion of fused to some would-be1borrowers
--1947-49
100—
5.1
103.8
114.3
'
evidence is still incomplete, it also pqclcet cash that accompanies the that, to the latter fnay sedrn reaGoods
8.2
Services
130.4
141.1 Y
seems
'
**
J'
"
1
»---■«•
3orvic'
The disparity between increases prices
group, have labor costs in excess
in prices of goods and services is concentration
of
one-third
even
of
the
,
detailed data are not
product. Hence,
only illustrations of thetendencies
However,
available for each
be
can
offered.
with
the
with
two
The
largest
10
price
exceptions
„
j
products
_
wider if \ye go back to 1951.
Since that year; goods prices have
ma-
were:
Electric.
Babcock
Blaw-Knox
48.1
._
Bucyrus-Erie
37.6
ov„rn(rn
-
.......
the
on
increases
the prices of services has reflected rise much
ox or?
wac
the
goods,
41.1
Y-~
_
prices
of labor costs rise as labor costs out- a bear market of a sort—maybe
have been strip increases in productivity. It intermediate, maybe more funda13.6%
and
34.1%
respectively, defies common sense to expect mental.
While part of this greater rise in that labor costs can continue to
But it is to be doubted that
37.4
Co._
Wilcox
&
War
Korean
r,'u of Sales
s
General
__
—
■
^
than prices of ing the discount rate* and the bint constituting an equitable deaUTbr
products with low concentration,
of. open market operations) were the man whose -money ' is beirigt
A much more significant factor well enough received by the stock- put out on loan,
vv,,; 0^0
acted ! differently
only 3.6% while services
have risen 23.1%. If the compari- jn the price rise has been the exr market at first flush, but the effTo return, over the months when
son is made since 1949 to over- cessive increases in administered feet was not lasting,
probably the discount rate Was being ihcome
the greater impact of the wages and other labor costs. Unit —4~-1-u
~
^ mainly because we appear to be in creased there were Only ' minor
:—^s—
risen
chinery and equipment category,
1956 labor, costs for several
companies producing these items
The
:
money
».
Four
in the
were
ease
z±=
r
of their sales.
.
than productivity there
more
will
be
any
flurries in the market action Of
the bank stocks, with the^net effeet of no great importance*Now
there seems to be little point in
momentous looking for much change in the
lVw*«5r«ni
rnmnnnW
their la^ during the war and early Without forcing up prices, curtail- change in money rates, short of a action of these shares as a result
InT vS wSi nS postwar inflation, the persistent ing profits, creating unemploy- serious depression, which most of the news. One thing that would
*
ioi eiectricai pioaucis rise also reflects the steady in- ment, or some combination of authorities discount. The markets give them a decided fillip would
compames according to one surrnmnn
in labor costs.
creaSe
vey*
riAnriv
The relative importance of labor
costs
p
no
lower
was
v
saies
01
tnan
tnan
man
_ioi
cnange
price
or
i'.erl ilizer
Cereal
and
Canned
fruits
23.6
Relative
labor
6.3
costs
determine
comes
alone
whether
increase
do
prices
the amount of
or
pattern be-
new
the basis for collective bar-
gaining throughout the economy,
these
When
excessive
labor
is
cost
which
The economic posi-
found
influenced
most
were
industries
in
by
the boom, the price rise has been
Industries
which
did
participate fully in the boom
could not pass on all of the in¬
greatest.
x-
not
in labor costs.
crease
That Ameri¬
rising
basic
by escalator clauses which auto-
matically raise their money wages
in line with consumer price in7
#
three or six months.
,•«
This engine of inflation is fine
creases every
the
for
protected
workers.
margins and
rather
ment
growing unemploythan
generally
NASD District 13
eiected to
serve
But
-
-
1
helps
explain
to
the
apparent
.
,
,
.
.
,
,
paradox of declining raw material
prices
Securities
-Elected
of
members
t]ie
prises
states of New
his address,
the
.
.
material
,,
prices,
they
"Employee Benefits
mittee No. 13,
of more than
year—about half the
increases
a
Wage increases of the last
Com-
Ralph C. Sheets
com-
York, New
year."1(i
t
or
cVv"
anh
f
_
InHati.n^ry TendanaW'
Council
1957.
and
cult
the
instances
to
see
Poor's
Corporation,
1957, P. 714.
of Commerce, Bu-
labor cost data
In
whUe
ad(Jed)
on
•XZJLSZ fSSZS&i&EZ
somewhat
benefit
ab0U£ 2.5%
how
.
be
could
Qonnet;ticUt, were the following:
such
a
4.
£
.11
„
the
sug-
highlight
to
serve
'
-.I*.
importance of wage inflation
the
V!
as a
cover
different
product class than
the price data.
However, it is believed
that there is sufficient similarity in the
data to make the comparison of interest.
force in
our
economy.
'
ij
t
t*.
rhnnte
TT
,
u
T
,r
inflation trend firmly in hand, so
dated
that
Sept. 2,
tration
Ratio
than
4.9 to
—5.0 to
—10.0
—9.9
0-
11-
30
15.1 to
20.1 to
that which
20.0
25.0
,
1
1
1
70
1
71-
80
90
5
4
2
7
2
1
1
'
1
6
2
3
4
3
3
3
3
1
1
81-
3
1
2
2
.
1
60
61-
1
2
-
.
2
3
8
.1
1
3
3
1
3
2
1
1
nartner
-
2
6
16
'
26
4
19
m
t
*
1
V
1
'
3
14
1
13
end
World
of
1
6
Owing to
the firm
& Co.,
.,4
5
.16
,
~25.
,
25
;
>
23
•-
-20
10
-
1957 and maturing
Priced at par, the
1958.
Feb. 3, 1958 and $8,000,000 4%
be- debentures maturing March 3,1953
II were soid and
privately placed,
Proceeds from the
much
to
of
the
ex-
rates been high. One would have
to make a long search beyond the
early 1930 s to find as low a prime
rate
which
that
as
4%%. And
now
rules,
of fpnds, anybody with a correctly
bankable proposal has had no dif¬
ficulty in obtaining funds.
It
is
that
true
were
sorrowers
Dec. 2, 1957, and for lend-
ing operations.
some
would-be
turned
;
Lester, Ryons & Co.
(■Special to Tiie Financial Chronicle)
LOS
ANGELES, Cal.—Leonard
has become associated
Smith
J.
wj£j1
Ryons
&
•
Lester,
at
away
t
Leonard J. Smith Joins
for the availability
as
financing will
$170,000,000 of
3.70% and 3.90% debentures maused to refund
Pressfd opinion, money has not
been tight, nor, historically, have turing
abie
a
name
doubt
maturity.
in
about
repayment
0.
r
623
Co.,
'
BANK
Tax
515
Madison Ave., New York 22,
Y.
the
was
incorrectly spelled in
footnote
article
13G
by
accompanying
Professor
which
John
the
13, St. James's .Square, S. W. 1.
V Branchea in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika
Uganda, Zanzibar, and Somaliland
Reserve
appeared on the
Fund
..£4,562,500 _£2,851,562
£3,104,687
The Bank conducts every description of
Opportunities in
.
Circular
on
Request
:
.
Laird, Bissell & Meeds
.
Members .New York Stock Exchange
Exchange
YORK 5, NY Y.
Telephone:-BArclay 7-3500
Bell TeletypCr—NY~ 1-1348-49
rCL A. Gibba; Manager Trading Oept;),
Members American Stock
180 BROADWAY,'NEW
.
SOURCESr^esseJ.7^rtedmah,-:CMM»Btr»Uvi>'iff
'
.Subcommittjee
:
on
■AmtxinarSnimriF'BeportTof :the
the
Antitrust and Monopoly to the Senate-Committee on
rc<>v0r page in the
Jtfov. 14.
Judiciary,»Eighty^Pifth Ctogr^ss. First Session, 1957; and U. S. Department
•
of Labor, Bureau o£ Labor Statistics.
d'i'Or,
"Chronicle^ of
We sincerely regret this
banking ■ and exchange business.
.Trusteeship* and Executorship#
also. undertaken
.
■
„
J..."
&
INSURANCE
STOCKS
Protectorate.
Authorized Capital
Paid-Up Capital—
V.
Douglass
and
Head
'
N.
Stern,
BANK
Kenya Colony and Uganda
Offices 26 Bishopsgata,
London, E. C. 2.
West End (London) Branch t
of Trainer, Wortham
of
connection that in loaning Co., Inc., in San Frahcisco.
Bankers to the Government in
error,
^
at & Co. and prior thereto was Vice-
of INDIA, LIMITED
typographical
.
„
,
It is well to remember President
NATIONAL
Inc., Investment Counselors,
Lintner
'
Total
new
War
.
2
1
91-100
2,
a
_
17
-
Dec.
offered
encouraged by the
Administration,
Contrary
6
18
1
2
4
1
,
2
.
2
1
.
Total
r
the
tween
CORfUECMON
over
..
was
Washington
York, N. Y.
and
15.0
2
2
-
41-
10.1 to
10.0
20
31- 40
41-50
•
5.1 to
+5.0
1
•
0.1 to
10
21-
0
appear
21
Npw
Co^' New" York,° nI^yI;
&
25
(per cent)
i
positions
Nov.
on
more-or-less to balance out each debentures were offered through
other, and it is possible that the John T. Knox, fiscal agent, and a
money
authorities really^ have nation-wide'selling group of semore to £ear from deflation than CUrities dealers.
;
£rom the modest rate of inflation
Jt was also announced that of
wfe have been experiencing-of late, outstanding maturities $12,000,000
This rate has been far slower than 0£ 3.90% debentures maturing
David J. Lewis, resident partner,
Paine, Webber, Jackson & Cdrtis,
New
Greater
two
.
Concen'
the
,
^achs
Change (per cent)
Intermediate Credit
The Federal
York-' the banks, DUI ii was because ineir ^outh Hoi^e Street, members of
ine DanKS, but it was Because their
—
ideas of fair rates were at variance the New York and Pacific Coast
N. Y.; John J. Gurian, partner, ideas of fair rates were at variance the New York and Pacific Coast
Merrill Lynch, Pierce, Fenner & with those of the bankers, or be- Stock Exchanges. Mr. Sm th was
Beane, New York, N. Y.; Hudson cause the bankers saw a reason- formerly with Shearson, Hammill
E5 fro
ley & Co., New York, N. Y.; Gus-
Relationship Between Concentration Ratios in 1954 (The Big Four)
and Changes in Wholesale Prices, May 1955 to May 1957
"111 DalM* ridww UvU&n
issue of approximately $136,000,000 41/s% nine-month debentures,
^uiiiuauv.
nphomnc
.
wwtn
^GThe Commerciali and Finoneiui b. Lemkau, partner, Morgan Stanp.
TABLE I
Price
&
irMiunci.
Gardner
,
implemented,
r/esti0n does
partner, W. A.
Company,
Newark,
J. William Roos,
policy
Clfi RaiftlfC Plai*a flake
Banks
as
cumstances grant wage and fringe
consumers
.
.
goods
a
tionary trend, do not believe they
are likely to do much beyond that.
It was only a matter of a few
days prior to the change in the
and Korea.
New York.
tribution of ^excessive wage increases to inflation when he sug-
the benefit of these deraw
The Outlook, July 22,
15 U.S. Department
some
cently emphasized the major con-
which
Plans, Oct. 11,
14 Standard
a
Bassett,
partner, W. E.
Hutton & Co.,
employer except in unusual cir-
WaSe,
before
K.
e
re-
rising finished
.
clinmg
13 See
H
Earl
succeeds
District
Instead of
ceiving
and
Dealers.
gegfed: "We could stop inflation
by insisting very strongly that no
and
prices.
t.
mem-
a
Association of
Professor Sumner Slichter re-
This rise in unit labor costs also
as
How-
it is this department's prediction that this action will not
be taken; there seems to he something sacred in the reserve relittle braking to the infla- quirement.
•
'
ever,
announced his purpose to keep the
0£ £he board of governors of
the National
ker
that at present are sterile.
tin of the Federal Reserve System
Ralph C. Sheets, Vice-President,
Blyth & Co., Inc., New York, has
been
vide
would see a sizable volume of
funds made uvuix«uav, to the banks
xj.*uuv available tv tuc wawivo
for lending and investing, funds
discount rate that Chairman Mar-
Ekclt Steels fiov.
this protection is at the expense
of other workers and fixed
in¬
cited earlier.
the
in
general price level,
has not
been able to pass on fullv the come recipients who find their
higher unit labor costs is indicated real earnings reduced when conby the declining profit margins sumer prices rise,
industry
can
rise
a
in-
wage
inevitably reflected in
creases are
prices, many workers in
tion of the industry is also a sigindustries are
protected
nificant factor.
Where the high against a reduction in real earnings
the increase.
this for new issues are still in fairly be a lowering of reserve requirehigh gear.
The American Tele- ments on deposits, for here we
to
and some curb- phone & Telegraph Company have
ing djl piuin niaiBiuo. These xc— just ******vv" new issue of
announced a iiv»r
ing of profit margins.
incoc re- .1
w
suits have reflected in large meas- $720 million in convertible debenure
the fact that we have been tures 011 top of another new issue
iy higher prices
Qf
productivity, the
15.0
____
wages
&ure
and
vegetables
Cigarettes
Up
developments.
time, the results have been main-
This excessive rise
has reflected the presgiant labor monopolies in in a boom. As the boom subsides, just gotten out of the syndicate's
our
basic industries.
After they it is likely that the consequences hands. Most commentators, while
have succeeded in obtaining in- of a continuation of wage infla- conceding that the moves of the
creases in
excess of the gains in
tion will be still narrower profit Federal Reserve are likely to pro-
in
27.4
bakery products--
and frozen
w
tion in prjces>
reported
a
29.6
Mixed
should
015111x^1*1*1^
xx/ifLi
illustrations lnciuaer
Plywood
not
a(jminjstered wages have contributed significantly to the infla-
many pioaucts witn
in
deenne.
inprpaspc
in
one-tnira
one
nrn/1iu»Ic
r
these
AVAAfishrA
thA
Specudiets in Sank Stocke
-<■
24
The Commercial and Financial Chronicle
(2344)
Continued
spend—but these funds have to
from first page
Unless
when the Federal Reserve
the recent reduction in the dis¬
the factors taken into account
authorities decided on
count rate.
Medley of Muddled Thinking
A
Now that something in the nature of a cycle in this
price business may have come to a close, some observa¬
tions are in order about the medley of muddled thinking
apparently always in progress on this subject of prices
and price increases commonly termed inflation. There is
a
very substantial body of economists and near-econo¬
mists who are convinced that a little inflation is a good
thing, in fact that continued prosperity requires a mod¬
erate but continued rise in prices. The idea seems to be
of a piece with the notion that a more or less constant
rate of growth in what is known as money supply is an
'essential of sustained
growth and prosperity. Yet when
prices begin a persistent rise, uneasiness soon appears,
and there is .a good deal of talk about the need of "sta¬
bility." Of course, a persistent upward movement in the
price structure anywhere must sooner or later reflect it¬
self in consumers prices which soon strike home to almost
everybody. Personal experience then tends to push eco¬
nomic theories out of the spotlight.
Of course, it is' nonsense or worse to say that con¬
tinued price increases are necessary for economic progress
-
continued prosperity. What solid economic progress re¬
quires and what enduring prosperity must rest upon is
stability in average values, and only such changes in the
internal structure of prices as the irresistible natural eco¬
nomic forces compel us to accept. To suppose that con¬
stantly higher prices are required either to spur business
to produce or the consumer to take the products of our
factories is, to place a low estimate upon the energy and
initiative of the businessman and to suppose that the con¬
or
will
sumer
about
the
can
"euthanasia
nowadays who
seem
inflation would be
of
the
rentier."
to think that
a
Most
of
those
little but persistent
good thing appear not tp give the
the widow living on the income of a small
salaried man,
a
the growing army of pensioners a thought.
When prices at the grocer's, the butcher shop, the drygoods store and all the rest begin to pinch the protests
from the great rank and file tends to drown out such
economic .balderdash as that preached by the inflation
estate,
or
advocate, but it does not permanently put
About
unfortunate
as
is the school of
we
shall have
the
end to it.
an
advocates
of
inflation
thought which insists that, like it
more
time forward.
as
or
It may
or
could have per¬
petual inflation (that is price increases) if we want it—
although we must confess some doubt about even that
we
—but there is not the
must
very
slightest reason to think that we
accept it whether we want it or not. Yet something
close to a belief that inflation is to foist itself upon
us
continually in the future is heard again and again and
again. There are those who firmly believe that "built-in"
cyclical "snubbers" will henceforth prevent any really
serious
depression and markedly tend to keep all
sions within
narrow
reces¬
limits.
in fiat creation of
gage
must surrender
of
economic system.
if
main
implement the Full Em¬
ployment Act should depression threaten, and the ebul¬
behavior of the public in the
presence of oftrepeated prophecies of inflation to come, are some of the
factors frequently mentioned.
It is said also that the
Federal Treasury has a
controlling incentive to keep
money cheap since it is so large a borrower—although
lient
<
.
recent events
seem
to have cut
a
good deal of the ground
out from under this observation.
Most
chasing
happy about it
Continued
of
these
are
cited
as
supplying
pur¬
and hence demand for goods. Very few
take the trouble to
explain how any of these do anything
of the sort. Pension funds would
put money in the hands
of individuals who
might otherwise not have
so
much to
duce
less
than
small
the
in
has
turn
and
woods
and
lumber
that
readily
into the markets,
through hundreds of wholesalers
a
its
way
and commission
values.
rising, but
on
shall not
we
Now what
re¬
tor—future
to me,
about
Today
"Aren't
of
more
fine
our
forests
and
the
price of
by
the
fire
Dr.
ago
Charles
timber
values.
Digging back into
all
available
records, he found
some
data going back as far as
1742, a little over 200 years ago,
these he brought up ito date
by 20-year periods. He could not
and
the dollar
use
parison
as
because
fluctuated
in
Instead,
he
stick
basis
a
the
of
com-
dollar
purchasing
has
power,
other
used
as a
measuring
commodities, such
wheat, corn, cotton, iron ore,
and coal. His study disclosed
that,
in each 20-year period over the
200-year record, timber was worth
12
as
than it
more
was
the preceding 20
In other words, it took more
years.
bushels of wheat
or
tons
more
of
coal
to buy a
thousand feet of
standing timber in any given 20year period
than it did in the
preceding 20-year period.
sold
for
$5 to $8 per M in
commanding prices up
even $70 per M. In the
decline in the price of
1940 is
now
to
or
$60
face
of
a
You
simply can't afford
plete
being
integrated
sure
of
unit
to
a
without
hole
your
in-
com-
card,
which is the continuous supply of
raw
material,-
good
comes
about.
Up
until
1950
GeorgiaPacific was largely a log buying
operation. However, by that time
it
became
to
our
increasingly
Directors
that
apparent
the
in
in
worried
have
an
ac¬
homes
in this
demand
to
country and
take
care
a
the',
of
^ 5? ni
Each ^ea^
n°t built
a^ currei" population figures, the
P£nt-uP demand grows. Have any
° Fei\
future
lay in ownership of timber due to
its constantly increasing values,
a
re~
5?" difficult it is. Why. Because
YY vacar??y.
for living
homes a vailis less than 2%.
Expects Housing Boom in 1960
WuQf
Co^ir,«
T
Yu A
_
»
oi"
;e
? saying is jnax al¬
i^ei! 5
hf
*
?iywY
v
1?. ust,ry
suffered in this declin® i*1 home construction, those!
maiI! <r
are not lost, and we. exj?.ect ? J?r?
resump,
H?/1
-?i
home building,
When-, ^vflj this come about,
That s hard to say. We have witPe?f*rr a
! iY 11 *1,
YnTe
Y
,Ylg
s0
starts
cornY Vcer.y
i°ncXe -h
£00,000 mark for 19o7. 1958 will
he slightly better
,
Our
own
company
is a
example of how this trend
s^ai^s anc*
about 1,100,090
^ey will he larger
Few two-bedroom houses—
three-and four-bedrooms to take
care of America s increasing fam-
Yies* But the^ big boom in hous,W1
stert around 1960, and
.
that s simply a matter of arithmetlc- Consider population fig-
ur®s—the total population in the
because we had found that United States in 1917 was 100,during years of economic swings 000*000 J' hi 1947—141,000,000;' in
the selling price of the products-195.7—170,000,000; and an 1975 an
would decline,, but the purchase estimated 221,000,000, Due to new
and
price
of
logs
timber
and
would
not.
It is hard to believe that timber
that
to provide a
of trees, thereby
guaranteeing a perpetual supply
of wood for the integrated maiiufacturing unitsy,".»
continuous crop
vest around $50 million in
not
we
was
forestation facilities
paper.
years
Ross, of the Econometric Institute,
conducted a study for a client on
because
1,100,000
1.000,000
increase in family formations, ob¬
solescence, fire and demolition of-
board, pulp and
amount of
Several
you
housing starts from
shortage of four of five mil-,
real
valuable,
determined
fac¬
People say
worried about
No —we're
it
fifth
demand?
lion
peeler logs it will produce; the saw logs it will produce;
and finally the amount of chips it
will yield for hardboard, particle
is
Demand
our
tual
dread spectre of forest fires. But
the big revolution has been by
development of. perpetual yield
units — a combination of lar^e
blocks of good timber plus large
land
holding^* and modern re-
timber
men.
Sees Increasing
doing almost as good a job as
Whereas a few years ago the yard- cutting. There has been a comstick of the value and utility of plete change-around in
regulating
timber was based almost entirely fires in our forests with a fine
on
how much it could produce system of access
roads, fire breaks,
in the way of flooring, 2x4's or and modern fire
fighting methods,
boards—today it has a new set which have almost eliminated the
of
they produce fine
1,300,000 in 1955 to
1956, and probably
become
more
utilize
can
years ago were left in'
structural
An Investment in the Fnture
demand
mills
modern
logs which
Timber and Forest Products—
in
•
day—
a carload
a day.
These
largely log buying mills, but
they are small and efficient. The
about
timber
per
are
9
page
20,000'
less than
1957?"
Through a combination of
circumstances and events we have
been
able to- pyt together over
the past 5 or 6 years one of the
finest timber hpldings anywhere
Iarn.hy formations alone, we must
begin to build at the rate of 1,500,000 homes in 1960; 1,700,000 in
1965, and up to 2,000,000 per year
by 1976, so when it comes to hous-?
inS booms, you haven't seen anything yet.
consisting of over 12 billion feet,
plywood of nearly largely
of
prime
old-growth - Then consider the remodeling
12 months, it is timber, strategically located prin- and repair market which takes
interesting to note that the price cipally in Oregon and California, almost 15% of all the lumber pro-r
of standing timber has decreased at a cost of about
$125,000,000. duced and nearly 30% of all the
very little, and the price of logs Through sustained-yield forestry plywood
produced.
This
is
a
about 5%. The reason for this con- management, and taking into conbooming market, thanks to the
siderable
floor
under
timbhr sideration
the long-term
annual Do-It-Yourselfers
and
the
ease
values is its basic inherent value growth, this reserve will increase with which
plywood is used and
as part of greater
growth indus- in value, and will provide a per- installed.
tries, and the increasing scarcity petual supply -of raw material,
Research also will play a large
lumber
20%
and
in the past
good,
desirable
timber
the
timber.
seldom
market—it
is
As
or
This
is
the
with
a
year
from the planned harvest.
sold
in
an
auc-
privately negotiated sales,
increase
basic
in
cause
timber
for
values
stability in
the forest products industries because it has meant that valuable
trees could no longer be wasted
and
means
utilize
had
every
to be
bit
invented
of
the
to
usable
wood fibre that is in the tree effi-
ciently and effectively.
Now let's consider for
fourth
factor,
have
since
old
the
been
late
philosophy
of
moment
is
combined
the
industry. Those
Northwest
will
recall
"cut
out
get out." Ruthless timbering
tices
with
among our
the
only
the
natural
Gold
resources.
It is
living natural
the
and
prac-
antiquated
fire-fighting methods were rapidly
decimating the priceless heritage
resource
that reproduce^ itself and adds
growth and volhme each year. It
is the only natural resource you
can see,
touch and count what
developing new markets
products of the tree,
por
one
tiling, homes will be
built more efficiently and cheaper,
You're going to hear a lot about
"component parts" in home buildjng jn school building in the fu-
par^
for
Green
you
jn
these
.
sandwiches
Th
built
tl're' These are sanduiches built
actually own. Is it any wonder
then that people are beginning to
of combinations of wood, lumber,
realize its great value and that
there is such a Jemand for it.
an(j
plywood
„
degree
developments on the large operator, but you. might ask, "What
the
small
in
the
By
paper
panels
Honeycomb
.
in considering^the impact of these
about
insulation board,
cases
re-
'.
ducing waste and inefficiency
„
some
and
some
.
>7.
The Small Fellow
We have dwelt to
which
in the
20s
a
is
Timber
-
Perpetual Supply
the
substantial cash flow each
a
thrown
is
orderly way at Government
tions
who
factors
from
In the lumber
as a
good example, out of
1,201 operators 824, or 70%, pro¬
long.
very
/
inflation left in the
war
fault, and
own
There is
than
more
gon,
the decline in
permanence of the
power
our
capital and size.
finds
higher in the future.
operator
field particularly is this true, and
we find that in the state of Ore¬
-
-
Prices may keep right
they do it will be
on
These same factors are now often cited as
equally
likely to keep prices rising. Large government expendi¬
tures, huge pension payments, unemployment insurance,
population growth, various probable activities on the part
power
1
Prices may move
result,
Why Higher Prices
purchasing
government.
good deal of the dynamite of
of
of the National Government to
in
somebody, somewhere,
to place it in the hands
money,
small
overbalances what he might lack
expenditures add to the demand for goods and distribute
money to those who supply them.
But the government,
too, has to get its funds somewhere. Unless it is to en¬
not,
less permanent inflation from this
be true that
the
somewhere.
endless round of arbi¬
creation somebody, somewhere, must sur¬
purchasing power that is thus put in the hands
of the pensioners.
Essentially the same is true of the
other devices
thought likely to enlarge purchasing power
and demand for
goods. It is true that large government
be
eternally buying in order to get
goods "before they are higher." Neither supposition is
in the least warranted
by the facts.
The truth is nothing that would rob all those with
a
fixed income, particularly those with small fixed in¬
comes, of substantial parts, indeed progressively larger
parts of their income and their spending power could be
expected to stimulate growth in the economy. It was
John Maynard Keynes who spoke rather unfeelingly
or
from
come
to embark upon an
are
trary money
render the
We See It
"As
we
Thursday, November 28, 1957
...
fellow—what
is
going to become; .of him?" There
will always be-a place for the
small
operator
He's far from
ruled out of tbg picture and never
will be because individual ingenuity and hard work 011 the part of
.
,
,.
on
the job, they also reduce the cost.
piyw0od will 'be
pvtor:or
more
used for
fartofv finished to elim-
exleriorV factory imisnea to enm
mate painting and you will see a
complete new' roof development
where
plywood
Neoprene
1
is
with
painted
plastics
which
f.
'
completely coat the panels, finally
being surfaced with a paint prep-
Volume 156
Number 5694
The
Commercial and Financial Chronicle
...
aration called Hypolite and guar-t- tant
economic fact that the
anteed for 20 years. *
must balance and you can't
Fast
Paper-Pulp Growth
v
-
As home building
£
grows so does
with its
great consumption of
hardboard
and the new
particle boards. And
the
furniture
then
comes
industry,
pulp and
is the third fastest
try with
and
over
This
paper.
growing indus¬
thousand
one
paper mills and with
five quarts in a four quart bucket
without causing trouble.
.r-
Plywood is a good example. The
profit structure in this growth in¬
dustry is threatened from
time
because
time to
unfortunately,
pro¬
ducers fail to recognize that there
periods during the year when
are
demand will not support five-day
prop¬
a
pulp
three-shift "production.
We have
witnessed this economic tragedy
erty investment, of $8 billion and
sales, which in 1957 will approxi¬
mate
$11 billion. In Kraft paper
alone each man, woman and child
in the United States
192
uses
pounds per year in
two
pour
shipping
con¬
tainers, bags
and wrapping paper;
to say
noting of the countless new
products that are being devised of
during
The
the
past
demand
in
greatest
100
MM'
several
factor
months.
has
been
the
history running from
to
105
MM'
much in
so
the
future
as do the Trust
Departments. Theyan eye to the
future every year. It is
not, there¬
fore, unusual for you "to forecast
are
investing with
into
1976,
search
that
and the
Institute
our
studies
plywood and
duction
keep
double
must
with
pace
Re¬
indicate
paper
by
pro¬
1976
that
will
the
increased
has
of
tremendous
supplies, we
have perpetual
estimated
utilization
that
of
our
that
formerly
burned, is equal to the cutting of
1,250,000,000' of timber every year;
If this
of
can
was
be achieved in
period
a
plywood, but it's
ficult to sell it
more
even
New
Earnings of Nfew York, Chicago
and St. Louis
efficient
under
reforestation
today.- Extensive
in
being carried
carried
on
the
on
even
tree
North¬
reforesta¬
and will
more
sively to accelerate and
exten¬
promote,
regrowth so that although har¬
vesting of the timber will be
stepped up, a perpetual cycle of regrowth
all the
will
continue
furnish
to
logs necessary to perpetu¬
ate, the tremendous investments of
capital that are necessary to oper¬
ate these highly specialized and
integrated units. Take in our own
company's case, although our own
timber
feel
to
are
reserves
our
enormous, we
of responsibility, both
sense
a
stockholders
and
the
to
public interest, to see that they
perpetuated, efficiently har¬
vested,
and everything possible
are
to
done
these
acres
promote
hundreds
we
of
regrowth
on
thousands
of
control.
now
It is
re¬
a
..
■
Only One Problem
time you are probaly
saying to yourself, "That certainly
is a rosy picture, but it can't be all
milk and honey." And you're right
this
—the future of the forest
products
industry is a bright one, but there
is one cloud,, and only one, on the
horizon—overproduction. There is
law that has never
or
repealed and
amended
that is the law of
the
supply and de¬
paper
segment
of
the individual plants
pretty well tailor production with
their
sales.
Unfortunately,
the
lumber and plywood segments do
not
appear
consulted
and
they
.
that
can
the
time
to
the
flies
on
be
productive. This is not
sit
down
and
watch
•
with
conquer.
them.
You
also
can
obtain
accounts which will be
to have matured
ficiently to recognize
suf¬
the impor¬
of
a
income
additional
now
Some Areas for Prospecting
There
are
middle
individuals
many
income
brackets
in
who
have
of
considerable
a
participated
not
in
an
investment program. These people
are not interested in trading. They
and
nature
v
For
of
October, net
lion
and
delivery of the
taxes
month.
charges
year,
share
common
net
income
as
or
$3.29
like
common
1956
period.
a
earnings
end of the 1957
620 shares in
based
were
on
period and 4,102,-
1956.
always has shown
Plate
Its
10-
good control over expenses.
transportation
ratio in the
month
period
36-6%
was
as
com¬
pared with 36.3%- in the same
period last year. These expendi¬
tures
maintained under con¬
were
despite
higher wages this
year as compared with last. Total
operating expenses also were held
down as is demonstrated by an
trol
operating ratio of 70.9% -this year¬
ns
compared with 69.6% in the
corresponding 1956 period.
The road has proceeded rather
,
slowly with its dieselization pro¬
gram, although its passenger serv¬
ice is fully dieselized. Recently,
the
Nickel
Plate
placed orders
covering the next few years which
bring
about
complete
dieselization with further resulting
should
One of the main reasons
savings.
for this deferred action is the fact
it
had
number
a
of
and
new
highly efficient steam locomotives
in service and now is running out
their useful life. It would not have
debt
additional
the acquisition
the
fore
have
sooner
in
junked
and
in¬
financing
of new power be¬
facilities
were
1958.
and
conservative
are
a
as
the
ment
a
Dow
the
wall,, while the
ticker
sputters and
Jones
stops. There are millions of peo¬
ple in this country today, with
millions
of
dollars
their
at
dis¬
posal, who should be informed of
the
value of
to
investment pro¬
an
And isn't this
gram.
open
when
some
the
D.
better time
a
accounts
new
than
J, Industrials
were
efficiency
important
Traffic
Control.
This
expedites the movement of trains,
providing better service to the
shippers and reduces per diem
charges. All single track between
Buffalo,
N. Y. and Chicago, 111.,
is operated under C. T. C. Nickel
Plate
the past
few years has
in improving its
property. This has in¬
over
spent large
physical
cluded
sums
the
building of additional
passing tracks and rehabilitation
of bridges and grade crossings. All
of
these
better
factors
reflected
are
control
over
in
expenses
despite constantly increased wages
and other costs.
The
in
velopment
has
the
its
of
been
active
industrial de¬
territory. Since
compared with $24,177,1956 period. Debt due
year,~mainly equip¬
of
of
many
provided that will produce income
of $100 to $200 per month on a
total investment of $20,000 and
$40,000 respectively. This figures
6% rate of current return.
a
If your research department de¬
to do a bit of checking, it
sires
should
come
with
up
attractive
difficult
be
not
a
and
today
to
diversified list of
thoroughly
dividend payers that
checks every month
solid
will produce
in the year
that will augment materially the
income
that
be
can
NASD District 5
Elects Milburn Gov.
WICHITA, Kans.
trust
certificates, registered
drop,
amounting
to
$4,239,520
$4,442,520
as
a
new
c o m
pared
with
tion
program
is
of
Glenn
Milburn,
xecutive
Vice-Presi¬
dent,
Small-
Milburn
Co.,
Wichita,
as
a
ember
m
the
of
NASD
board
of gov¬
ernors.
Elected
a s
members
NASD's
trict
of
Dis¬
Commit¬
tee No. 5 were:
Edward
L.
Glenn
G.
Milburn
Mader, part¬
ner, B.
C. Christopher, Kansas
City, Mo., and War O. Brooks,
partner, Brooks & Co., Wichita.
kept in
derived from
that portion of resources
fixed dollar assets. I am not sug¬
gesting here that savings accounts
not have their place in every
do
investment
every
program,
should use even a
their savings for in¬
person
of
portion
vestments.
I
have
By NASD District 12
invest
to
a
portion of their assets and thereby
Show such
attain MORE income.
election
of
the
as
members
Committee
of
been
has
Announcement
in mind those
afford
well
can
Named lo Committee
that
nor
of
made
the
following
NASD's District
No.
James
12:
C.
Chaplin, III, of Chaplin & Co.,
Harry J. Steele
of
where they can obtain an income Pittsburgh;
permanent industries have been of
$200 per month on a $40,000 Fauset, Steele & Co., Pittsburgh;
located on the carrier's lines. The
portfolio of good stocks and you George E. Nehrbas of Parrish &
new
plants are in a variety of should create some interest.
Co.,
Philadelphia;
and
Alfred
businesses which gives the Nickel
Rauch of Kidder, Peabody & Co.,
si!
ffi
Plate well diversified traffic.
Philadelphia.
Still another method of building
Nickel
Plate
has
a
relatively
a
clientele is by directing your
conservative
capitalization:
Its
6% preferred stock was redeemed advertising to the advantages of
Two With First Southern
tax-free bonds—show what equiv¬
in April, 1955, and at the end of
(Special to The Financial Chronicle)
alent yields can mean to the in¬
last
year
debt,
including
the
vestor in the 20%, and upward
ATLANTA, Ga.—Joe E. Brown
Wheeling & Lake Erie minority
income tax bracket.
If you can and John A. Rilovick are now
interest, amounted to 46% of its
The First Southern Corp.,
write a short booklet describing with
capitalization
1948
a
total of
more
than 336
in
investors
community
your
new
:•«
and
and
surplus
4VzS
sold
to
54%.
common
The
finance
which
the
if
full
stock
debenture
the
the preferred stock have
fund,
for
call
of
sinking
provides
a
earned,
retirement
of
bonds and offer it to in¬
tax-free
leads that are worth follow¬
some
*
There
there
George J. Russ Opens
offices
at
PoWay and
Oak
Knoll Road.
are
Sheldon S. Leighton Opens
Sheldon S.
a
Leighton is engaging
securities
business
from
(Special to The Financial Chronicle)
of¬
Funds
dividend
with
records,
undervalued stocks that
have
been
of
there
are
hammered
down
to
BLOOMINGTON, 111.
Baxter
E.
White
brought
be
to
their
My point in this week's
select
WISH
TO
an
TO
obtain
City. Mr. Leighton
operation and agreement of your
with Merrill Lynch,
Pierce, Fenner
Beane, and Cornelis de Vroedt,
Inc.
Company,
216
West
With Copley
& Co.
(Special to The Financial Chronicle)
COLORADO SPRINGS, Colo.—
Warren
A.
Bostrom
is
Copley and Company,
Building.
now
with
Indepen¬
dence
THEIR
the
ATTENTION
previously
Charles
IDEA THAT YOU
BRING
fices at 90 Broad Street, New York
was
—
affiliated with
1956-1957
highs,
special situations right
piece is that in order to motivate
both your sales organization and
the investors in your community
first
&
now
their
must
these
is
Washington Street.
in your own home community that
are
of interest to investors, but
attention.
in
%
*
Mutual
are
50%
CSpecial to The Financial Chronicle)
POWAY, Calif.—George J. Russ
conducting a securities business
from
Joins White Co. Staff
ing.
the
long unbroken
is
Peachtree at Ponce de Leon.
bring in
this, too, should
vestors
issue by maturity in 1989.
&
year ago.
equipnient
Announce¬
—
ment has been made of the elec¬
only want
investment.
revaluation
current
who
also
road
increasing
type
520?
Joins Columbine Sees.
one
slight
The
•
Centralized
greater extent.
31,
1957,
cash
$7,798,162, temporary
were $23,235,176
and special deposits, $811,667. This
compared with cash of $7,106,078,
temporary
cash
investments of
$24*145,267 and special deposits of
$759,874 at the -end of August,
1956. Net current assets were $24,in
diesel loco¬
to
begin in
soundest
The
factor has been the installation of
amounted to
156,282
new
scheduled
v
Another
cash investments
within
the next five years, with
steam
depreciated to
As
of
Aug.
209
over
motives
ten
equal to $3.03
compared with
the
in
first
the
For
this
of
Nickel
for
are
the expenditure of about $30 mil¬
totaled $12,474,085,
a
plans
the country,
after
months
Current
sales
of
aggregated $1,815,066 as compared
with net of $1,923,946 in the like
1956
conditional
and
month
the
income
up
section
industrial
cur
'
In
ganization.
It is a passive and
appeal and tremendous pri¬ negative approach to the situation.
Or you can take the positive
mary use. * The Forest Products
Industry is going to write a thrill¬ approach and set out to keep your
ing chapter in the coming indus¬ sales
organization
working
on
trial history of America and the constructive activities, which in
custodians of our country's timber the long run will help you to keep
are
fully conscious of their re¬ the good-will of your customers
sponsibility. The challenge is great so that when confidence revives
and there are many new fields to you can continue to do business
mass
contracts.
have held
serving the Eastern
locomotives
the industry
low cost products that have great
of the carriers
economical „to
mand.
have
through
dependable
securities
has
im¬
proved yields to a point where a
very attractive
program
can
be
these
.
economic
be
while.
campaign.
:
;
ties of not only losing some pres¬
You
can
create
business
by
science, the ent clients through neglect but motivating
your salesmen through
been greatly wid¬ also impairs
the efficiency and a
sound
advertising
campaign
improved efficient ability of your entire sales or¬ which is directed toward leads
tificates
far this year
so
been
an.
should
should be asked for their opinions
and help in putting over such a
and
better than those of the majority
road
charge.
been
horizons
take quite a
This entails the possibili¬
may
the
sponsibility which we accept and
which we hope to capably dis¬
By
self-replenishing re¬
fortunately through
and
which
fa¬
more
probably will be financed through
the sale of equipment trust cer¬
(Njbkel Plate) Rail¬
4,119,084 shares outstanding at the
west
be
vorable
Not only are our forests a
York, Chicago & St. Louis Railroad
productivity
farm
is
for the invest¬
and wait
begun.
yet
These
not
back
ment climate to become
have sufficient surplus funds and
greater
much
sit
American forest industries has just
the
We have hundreds of thousands
tion
dif¬
more
wifhout dumping it.
manufacture
result with less proportionate
acres
lot
a
of
excess
of
methods
cutting of present timber stands.
of
an
dence
Railroad Securities
share
application of
that
golden age of
two ways to view the the leads created by the firm's
existing lack of confi¬ advertising and -research depart¬
among investors.
You can ment are not fully sold first. They
are
presently
some new
$13,514,165
can
borrows
to manufacture
easy
in
efficient
plywood
banks that you.represent. It's very
little more than 10 years, it is
obvious that with greater research
a
the
116
industry
from time to time from the
money
its timber
reforestation,'
this
been
salvage
the
that
There
Can Be Secured Now
and in the future.
timber by using chips from waste
and
parent
ap¬
turn
in
Stands of good merchantable tim¬
It
continuing change, and it is
source
use
to
ber.
products from the trees guarantees
a
to
timber
continue
the
of
the
Leads
ucts
Industry is limitless.
The
flexibility and adaptability of
ened
in
By JOHN DUTTON
con-:
through
on
creasing prices beyond their 19551956 average. It's as simple as that.
The future in the Forest Prod¬
week.
plants
Securities Salesman's Corner
without in¬
year
but
everyone
re¬
This
despite
demand
per
research
supplies go around, and'
thereby lies the challenge to make
so
million
modern
timber
profitable
$50
source,
know this situation well since
have
sulted in added net profits before
taxes
in
1957
of
approximately
living
increasing premium on
timber ownership.
America i has
been having it relatively
easy up'
to now digging into its rich standi
of timber, but. the
industry is now
having to scramble to make the
more
would
week
an
and hoard it
industry
years
ers
balancing of
a
mounting
demands.
sumer
places
Stanford
wood
per
The
25
production with orders in the ply¬
ago), but producers keep on mak¬
ing from 110 MM' to 115 MM' per
resulting surpluses are
slight, but when dumped on the
;j I am told that there is no de-.. market, prices react
unfavorably
partment in the banking
industry and result in loss of profits. Bank¬
deals
It is estimated that1
(double that of about five
Kraft paper.
that
£345}
and
co¬
(Special to The Financial Chronicle)
salesmen before going ahead
it.
the
Many times the men
selling
and
the
with
who do
following
of
Colo.
DENVER,
Roberts
Ch
or»m o n
—
Bernard
L.
joined the staff of
Securities Corp., 1575
has
Columbine
26
The Commercial and Financial
Chronicle
(2346)
Public
Utility Securities
"We
signal that
By OWEN ELY
an
we
we
had to buy large
plies electricity to a population amounts of power from neighborof 350,000 in parts of southwesting agencies. The first modern
ern
California and Nevada, with steam units were placed in scrvCalifornia
Electric Power sup-
the
company
felt it
we
deflation,
;Wage-Push Inflation
-
ice in 1952 and the company now
the urban sections in these
capacity is now 228,000 kw, ineluding a 66,000 kw unit which
ture."
regions in Inyo, Mono and Kern
went into operation last June (a
man
Counties.
similar unit is scheduled for completion in June 1958). Ten hydro
pjanis have a
total capacity of
52,000 kw with average
water
conditions and the company has
available
about
45,000
kw
at
Hoover Dam under normal con¬
ties to
The
desert
the
>.v':
northern
mountain
and
;-v
' '
?
;
desert
'
in-
areas
elude
important industrial sec¬
tions, while other regions include
a
number
of
important resort
areas.
Principal cities served in¬
clude San Bernardino (which is
served jointly with Southern Cal¬
ifornia Edison Company), Palm
'
recent
trica
the rich
to
Mexican delta of the
mission lines from its plants, located
to
in
San
local
the
High
Sierra, south
Bernardino.
agencies
power
small
Some
were
ac-
quired and the company's growth
about
kept
pace
with that of the
United States.
^
' V
4
•
At the end of World War IT the
of
developed
into
that 1962 sales should be 87%
in
increase
creased
-
Riverside
222%
while
area
earnings about 10 cents 'a share.
the popula¬
'
"
A
1
1
Other favorable factors
1
are
rate
a
-
:
" f
"
.
•;
j"
;
precise
agreement " regarding
all
the
causes of inflation, no thoughtful
and
objective person can doubt
that wage increases unmatched by
corresponding increases in productivity are a major contributor
to inflationary pressures.
Sys¬
Horn Wright Patman
discount
rate.
'' /,
i
j
,j
s,
^
f
Slichter, if I may ;
again, writes: T
"Among the principal influences
making for inflation must be ineluded the. growing strength of
refer
And
so
the Full
Continued
many
there
who
are
to
seem
,
trade unions." He then documents
that
statement
by pointing out
that, in the five years 1951 to 1956,
the average hourly compensation
of employees in private industry
outside
of agriculture increased
approximately 20%, but output
per man-hour in private industry
think that
Employment Act [of 1946] will work!
from
3
page
him
to
i
;
outside of agriculture increased
only
10%—or half as much. In
circumstances, with wage
costs per unit of output rising
steadily and Substantially, prices
could go in one direction only—
up; and so they did. But prices
did, not
rise
enough, Professor
Slichter noted, to offset the rise
in wage costs. A part of that rise
was taken out of profits.
these
Three Critical I ssues
On the Business Scene
Bmm.
The first is the danger that
•
...
.
r
we
if it is achieved, in halting the
decline
in
value
the
of
money
must not put the nation off guard,
I seem to
sense
I
>
;
'
among managers
As long as world conditions throughout American industry a
remain as they are," inflation is a dctetminatibn to be resolute in
likely to continue to be our most meeting their responsibilities with
serious long-run economic prob- respect
f
*
to next yeaFswage'settle- ^
lem.
Whatever the short-run ments. Their responsibilities cer- r
trend proves to be, I suggest we tairtijr include the exercise ' of '
bear this constantly in mind as we enough restraint to see- that unit
make business decisions in our wage earners, than keeping in- I
own organizations and as we take through unearned pay* increases. I
positions on 113110031) policies 30U
proposed StcitGj and
commend
local,
lieve that few
nrntfrome
programs,
,
their resolute
attitude,'
t
because I deeply and sincerely be¬
things
are more
im-
~
increase received by the Mexican
subsidiary, and the improved hydro situation. The company's full
in America will relax our efforts
Dependence on Inflation
portant to the future well-being
combat inflation before we
The second danger that I would Of the American people, including
really have it whipped. Even as I like to stress is the danger that wage earners, than keeping inStales only 35%. During the past
decade the company's revenues quota of firm power is now avail- f£and. here, some of you may be people might come to regard in- flationary pressures in check.
able
from
Hoover
have increased at the annual rate-?
Dam, after thinking that the inflation prob- Ration as a comforting friend
As I have indicated, there is
about
four
years
of deficient
as
already been licked, rather ihan a deadly foe. Lest you a close connection between the
of nearly 12% compounded.
stream flow in the Colorado River, There are indeed signs that per- think I am unduly alarmed, I ask
The company has made rapid
problem of inflation and the
and
there may also
be a fair haps the counter-measures of the yOU to think back over the past growth of union
strides in increasing efficiency.
power.
But in¬
amount
of
interruptible power p.asJ yJar are taking effect and few months and recall the number flation is only one of the evils to
[Payroll cost is now only 14% of
tion
of
California
gained* 146%
the population
and
of the United
revenues
1948.
are
compared with 22% in
System losses of electricity
now
about
11%
compared
available in 1958.
that
Earnings for 1958 are estimated
by President Ernst in the neigh-
^e.\j0dP.
borhood
of
the
economy
disinflation.
1
face
may
a
^ability, or even
.
■.
^
Qf times you
have heard someone
imply that a little inflation
js a good thing,
say 0r
.
which the growth of union power
has contributed.
For
instance, union
power
today
at long last, inflation has
i do not wish to argue the point
includes
monopoly
power
over
been checked, wonderful! But in- here as to whether or not Profesing new
entry into many fields of work.
that some additional shares may Bation is not a candle that, once gor Sumner
ters and using higher
Slichter was correct Through the device of the union
voltages.
be
issued next year—they have snuffed out, can sately be for- when he said that the
The operating ratio reached near¬
dangers of shop, unions are permitted by the
not
determined their financing
tten. Like a subdued forest fire, creeping
inflation
have
been law to extract what amounts to
ly 85 % in 1951 but last year was
program as yet.
',"e danger of new outbreaks is "greatly exaggerated." Professor tribute from
less than 78%. 1
involuntary members
with
18%
in
1947, due to locat¬
generation in load cen¬
Up to 1952 the company was
basically a hydro system, which
probably accounted ^for the ir¬
regularity of earnings.
Moreover,
tREA RESOURCES BOOK
explains why the
area
we
offers
so
serve
much
number
$1.10
the
on
shares.
It
is
present
possible
California Electric Power's
men stock record is
table below.
The
stock has been
price-earnings ratio based
cent earnings is 13.4 and
the
on
would
estimate
be
on
re¬
based
next
year
11.8.
California
industry.
for
Electric
Power
tecord—
Revenues
Write for
Year
(Mill.)
1956
FREE
COPY
Box
899,
Dept. K
Salt lake
City 10,
Utah
—
1955
__
1954
—
1953
—
$21
97c
73c
19
91
65
15-12
73
60
13-10
18
-
-
1950
~
60
11-9
16
89
60
11-8
13
54
60
8-7
12
68
60
9-7
60
9-7
10
74
60
8-7
9
77
60
10-6
75
-60
14-9
1949
1948
_
1947-
-
Colorado
-
Wyoming
ST. LOUIS, Mo.—Doris
cc
.Inc.,
•
must. SRchter's
the national
?
•
gt^
them.
keep the problem in perspective, bear in mind that in the
years
ahead
there
will
be
judgment,
arguments
are,
in
grounded
in
my
realism
and have much to be Said for
bUt stablllty Wlth Stowth.
To
great
pressures
on
world
resources,
Nations
presently
industrialized
vvill seek to elevate their levels of
living while nations not yet industrialized hasten to catch up. In the
United States, we face a period
They have also been much
disputed. But those who side with
him should recognize the danger
of going beyond his position —
which is that for the near term
gradual rise in the price level
probably inevitable — and asserting, which he does not, that
a slow but steady rise in prices,
as such, is a good thing,
a
is
^ rapid
population growth,
if chronic inflation were ever to
greatly expanded markets and, for become, stated or otherwise, the
next several years, a relative
national policy, the consequences
shortage of labor in proportion to would be
grave indeed. Speculate
the size of the total
population. for a moment on what you think
We
also
face
the
fact
of
tremight happen to saving habits,
m£Pdo\Js "I11011 power, about interest rates, business contracts,
nS? u sjia of continued
more presently. and the cost of carrying the naThe
burden
high tional debt if the United States
levels of defense spending
appears were to put the world on notice
and
S.
for
i
other
many
tne world.
.
nations
of
.
Jn the light of such considerations as these, it seems to me that
we must expect continuous infla-
Ly-
„
^aS J oi^ed *be staf^,°^i ^
Co.,
am
Meramec Avenue.
.'
inescapable for the United States
(Special to Ths Financial Chronicle)
;
but
•'
r
who must
their
In
sign
up
in order to earn
daily bread.
some
areas,
uhions
have
shown that they can commit acts
of violence with impunity, to win
through fear what cannot be won
through right. They have acquired
enormous
economic power, sub¬
ject to little1, if any, regulation.
Unions also have great political
power
resulting not
so
much from
their ability to deliver their mem¬
bers' votes, as from their huge
financial
resources
and the devel¬
opment of large staffs trained in
political action and dedicated to
the acquisition of still greater
power
and
ecoiiomic advantage
through political channels.
-u
With J. F. Lynam
& LIGHT CO.
Idaho
88
15-14
8
1951
iSI
the
92
1952_.
UTAH POWER
-
Paid
17
1946
Serving in Utah
Approx.
Earned
we-
com-
shown in the
selling recently on the American
Stock Exchange around 13
(range
this year 14%~12%) and is
pav¬
ing 76 cents to yield 5.8%. The
opportunity
to
of
111-. South
•
>
.
•.
to do something about it,"
Pany
1
Bernardino
£
.
V\-
cash internallyt and obtain about
$75 million from the money markets. The equity ratio should be guilty in some measure. And permaintained in a range of 30-35% haps most of the different ex(the present ratio is 34%).
planations we have heard contain
Earnings for the 12 months some elements of truth.
/
ended Sept. 30 were 97 cents per
But even without posing, as a
share compared with 94 cents for pundit on the subject of inflation,
the previous period. The com- one can make some accurate ob-(
the
A*
Even though there is no
Gover¬
the
C
J'';;;..'.
During the five years they ex¬
pect to generate up to $25 million.
in¬
of
one
in the newspapers.
tem, referring to
has asked the Public Utili- servations about , it. As businessmost rapidiv crowthinc sections ties Commission for a higher rate men, we have had enough experiin' the United States in nopula-, oi return (about 6.4%) to offset jnce with it so far to be able to
tion, farming industrial develop- increased fuel and operating costs forewarn - ourselves
of certain
merit, military bases etc During and'higher money rates. The in- dangers. I would like to mention
1930-56 the population of the San crease, if granted, would increase
Jhree P°,nts of danger, as I see
area
Chair¬
(a serious recession that the Congressman says has
quickly. We need positive action,
definite and quick action to restore
things before
they go so low you can't restore it."—Representa¬
tive Wright Patman to Chairman Martin.
River, which has en- larger than in 1956. The construcjoytd extremely -rapid growth, tion program approximated $23
Mexican, the principal city in this million in 1957 and is estimated
area,
now
has a population of at $24 million in each of the years
over 125,000.
1958 and 1959. The amount will
The 'company's
history dates then, taper off, the total for the
from 1905 when it began to bring five years 1958-62 being about
hydro power to the boom mining $100 million.
The company is
currently building two steam gen¬
camps of Tonopah and Goldfield
in Nevada.
erating units at once, so that con¬
By 1910 it became
evident that this area, like all the struction is running above normal.
in the West, would
eventually decline. - Accordingly,
in 1912 the company built trans-
J
already begun to negotiate -I
have
hit us) "and do it
Colorado
famous camps
—
manner
Professor
annually over the next five years,
so
'
with yt
industry >
settlements which several unions
pic¬
Martin;
"I want to urge
you
should increase at the rate of 11%
subsidiary, Industrial ElccMexicana, supplies service
excited
eral Reserve
W. McC. Martin, Jr.
company's rapid growth is
The
'
The third danger has to do
to price stability now in sight. X
refer, of course, to the 1958 wage
nothing
of the Fed¬
nors
..
Victorville and Barstovv. A Mex¬
Blythe,
Corona,
get
Board
ditions.
ican
Hornet,
see
about in the
expected to continue and a recent
study indicated that kwh sales
Springs,
"I
to
Total steam
the order board.
on
coun-
!
in which
deals with the most serious threat
has five steam units in operation,
two under construction and two
San
one
life,.
some
the
Bernardino
and
in
had
adopted
a
policy of
creeping inflation. It would mean
destruction of faith in the
fairness and integrity of our in¬
stitutions and the beginning of
the end for our present way of
action."
contributing
nearly
three-quarters of the company's
business. Service areas vary from
Riverside
Counties
you
the
neces¬
to take
sary
tell
what it would mean if
Americans were to declare that
we
apparently straightforward, clear
saw some change in the business
"In order to control both inflation and
Company
can
28,1957
sentence
situation.
Electric Power
California
f
gave
Politician
vs.
I
think
I
Banker
Thursday, November
...
^
tionary
,f._
longer chose to regard
currency as a stable unit of
account, no longer respected it as
a standard of deferred payments,
no longer prized it as a store of
value, but nUCnucu that A(. be
intended liJrtL it uc;
no
v(uuc
.
pressures to exert their, nothing more
upon the,economy for- use. as
ahead. Temporary success, change
influence
years
.................
th-rt it
its
than
a
scrip
for
There
are
increasing efforts by
certain union leaders to take over
the management of the companies
they are negotiating with. We read
of their efforts to tell management
what prices ought to be
charged,
how profits
and
ought to be utilized,whether
dFNmt particular
parts.should Me. put-chased, from,
outside suppliers or manufactured;
on the. premises.. Often they seek"
to make* political capital -out of
-
Volume
186
Number
5694
.
.
The Commercial and Financial Chronicle
.
their attempts to invade the man¬
and
agement
describe
as
is based
on
area.
Rank
/>'
File
and
Control
correctly,
we are coming to formed 72% of the nation's total
People's Capitalism— research and development.
Govfreedom, not compul- ernment agencies did 18%, uni-
cinn-
Concomitant with the growth of
.
(2347)
in
r\rv\
Kntr
uriicipn
ica take
on even greater tasks, to
lift the levels of living of the
people and defend the free world
f\07
nr»n
Z
M
mthlfiSS
tion's
research
and
development
:
frustrated,
3Ild
compa-
as
the rank and file. As Mr. George
Brooks, Research Director of the
share of the responsibilities.
In the beginning of this paper,
I commented on the growing influence of political affairs on our
business life. The political im-
Internaional Brotherhood of Pulp,
and
plications
a
third
development.
This is the
by
loss of control of their unions
These. things
most
'*
ft
-*/%
•
'
4
-.a-*
'
*ft
A Al
j-i
have heard at school
W
ft
.
ft. ■«
tr
ft
r
irt
■***.
A.
d.
iV—.'
'.
<
i_
__
—
«.
—
"I
'1
_
'
_
..
3
or
(
union
power, and the attack on largescale enterprise illustrate, but by
no means exhaust, "the range of
politically-oriented issues that
demand the attention of the businessman. The plain fact is that
they wish,-, to'act and to communicate as a
"act without regard for democratic
good corporate c i t i z e n should,
'procedures and employ their Down this road lies the best hope
of- achieving widespread underpower for purposes unrelated to
cans?
Wishes.
They
own
if
can,
'
:
the interests of their membership.
Of course, not all unions are
'undemocratic,
officials
not
and
t h
abuse
e
i
union
all
positions.
r
standing of the kind of economic
climate
social
and
duce
that
will
.stronger, happier,
prosperous America.
a
pro-
more
This brings me to the final sub;in the union movement, men who,, ject, about which I shall give only
^deserve the respect their members;' a brief word—the subject of corand
their communiites
accord porate size.
ThWe
good and honorable
are
men
.unions under
our
laws makes pos-
,s;.Me—one might almost
vites"—the
.wave
to
that offer little
"in¬
say
or no
redress
unworthy union officials.
bv
attracts
criminals
who
to
seek
their racketeering behind
«the special privileges granted un-
.
screen
ions.
It
sometimes Jeads
the
to
frustration of constitutional rights
of individuals and the denial of
1 democratic
'•
.umons.
For such reasons
^
the
within
processes
/people
have
these,
as
concluded
many
that
the
time
some
•
has
of the special nrivileges en¬
now
withdraw
to
come
joyed. by unions and to establish
.legal framework which will
ra
make unions
„
■
K
„
talking
rornorate
about
sizp
corporate
T
x
size
the
members
the
and
public
'
welfare.
If undertaken in the right spirit,
legislation to this end could be of
great social benefit.
The spirit
must be constructive. It must renresent
sincere
a
employees
attempt
imDrove
to
their
help
collec-
tive bargaining agencies. "Union-
.
busting,"
so-call®d "anti-la¬
no place here.
and
bor" tactics have
Senator
-
Karl
this
exoressed
Mun^t
recently
thought
in
these
words:
mot
legislation
want
is
which
punitive in design and which
is not conceive-1 to r>Unish neoole.
But
•
we
legislation
need
which
I
labor win pnt,hucia«tipaiiv snpnort
along with the re«=oonsible leaders
of
labor,
wMch
and
will
restore
the balanc° of power between the
dues-paying member and his labor
leaders and between the em^lover
the emnlov^e
and
eoually im¬
as
portant serrmontq of our great and
growing industrial economy."
1
Eiectric's Philosophy
Genera!
We in General *<Toctric
sincerely
believe in th*3 emnlovpps' right to
establish
•
strong,
resentative
just
can
as
Wo
neither fc>° create*
tained
believe
sincerelv that such unions
on
that it is
main¬
nor
the hp«?'s of compulsory
membership.
our
An^
dnt.v
rate citizen® to
also believe
we
as
co*-»d
out un front when
Amenca s
iuu
and the re^pnns
wo
this and otHer *~a+t*rs
the bu.sinnpc riimate in which
on
we
live and work.
Am erica V
system
—
nriceless
which
more
economic
and
more,
profit results today are influenced
by ideological forces, no less than
market
forces.
To
fulfill
his
responsibilities to the business and
to the society in which it operates,
the manager must be willing to
enter the arena of public opinion
and make his ideas known.
As you well know in the oil
industry, such efforts are not always met with success. Yet what
alternative have we,, as Ameri.
To
live
and
work
in
work .in
in
that
the
mvamame
x°rve
111
military
in
*
circle^
Satellites
in
.orce
suchiuh.
they say
as
|>
T
*
^
and Rockets
sa
rnTjVu ~Vlc®~P*esid®nt»
A
.
«bv
a
kind of
c
c
OCtiaerrer Opens
Schaeffer
offices
74
at
You
not alone.
are
Any indus-
try which has served the public
well and successfully enough to
become large seems to attract political attack. Yet, despite all that
have read about the
I
attacks
big companies, despite
my
on
still
I
there
from unfounded charges,
quite believe that
cannot
responsible
are
research
will
prevail
essary
long-term investment
laboratories and skilled staffs.
will
be
The
seems
so
cannot
\ 9
g "
the
large-scale
enterpnses.
America
could
not
maintain either her level of living
or
adequate national
an
No
one
defense.
pJtahlkhPH
having bie comnanies to handle
big jobs in time of war. Whv is
it not just as apnarent that they
ecaially important
are
to
provide for
in helping
and make
secure
thc blessings of peace?
just one type of activity
as an
example—research and development. Most people recognize
that the brightest hope for a betworld
tomorrow
of
promise
further
lies
in
the
technological
advance.
too
that
the
..
and
.
nptwork
includes
laboratories
98
mBineers
exoerience
technical
sources
effort
virtually
toJ
and
any
be
capacities
other
In
important
words, it is
that research
and development work
gets done,
Who
And
T>oes the
who
in America?
tive
is
Research?
doing the research
The most
authorita-
report °n the subject issued
by the National Science Founda-
re-
can
be
on
technical tasks that
techincal
The
other
been
large
compa-
constructed
~whv
crippie
wnnlH
nnvnnp
or
break
nnr
up
them
wont
tn
thp
Dreviouslv with First
wa
is
be-
oeoDle
panies
with
who
adraate
against the
have become
their
that
own
they have
sight of reality.
American
so
The
business is
vestors Cornoration
With Bennett-Gladstone
(Special to The Financial Chronicle)
LOS
ANGELES, Calif. —Helen
Kilgor and Stanley '.E. Henslee
have joined the staff of Bennett-,
Gladstone-Manning Company,,
8417 Beverly Boulevard,
Blyth Adds to Staff
(Special to The Financial Chronicle)
LOS ANGELES, Calif.—Douglas
Owens is now atflliat^
a
a
of
complex
half mil-
competitive
yet interdependent enterprises of all sizes
that has grown in response to the
tion, shows that—in the year stud- needs of the people and the times.
ied, fiscal 1954 — industry per- If the future demands that Amer-
with Blyth
ards & Co.
4
Hutton Adds
(special to
LOSANGELES,Calif.-Thomas
p
hppn
cv,aw
7p
adrifrt
Km
h
Jt
th*»
fr»
fwt
p
255J^snrinff Street^^He w^forSS
r
a
hnaip
apn
merly Wltn J- A# Hogle & ^°*
Walcf™» fA
A/Uc
vv **lblon v'u*
(special to the financial chronicle)
SAN MATEO, Calif.—Robert R.
Birr has
become associated
with
Walston & Co., Inc., 329 South
Ellsworth Avenue. He was previously with First California Co.
Prospects
as:
whether
military orders, public's reception to
consumer spending.
and
industrial
Bulletin" of Nov. 18 reviews
economic forces deter-
midyear level, after seasonal adjustment. Residential building, as
measured by the number of new
homes started, turned down in
September
several
following
months.
rise
a
The
of
of
wave
business spending for new plant
existed
Federal
Reserve index of the physical
volume of industrial production
(1947-1949 = 100) averaged 144.3
for the past Quarter. This compares with 144'5 for the first half
of 1957' and 146'3 in the fourth
Quarter of 1956. For the month
of September the preliminary index.was 144« the same as a year
"As possible offsets, three factors are receiving close attention,
One is the volume of military
orders, which has been relatively
i0w and is expected to increase,
Another is the public's reception
of 1958-model automobiles. It is
too soon to draw any final conelusions about that one. Production is being stepped up considerably now that the changeover
nalT0W range which has
for a year or more- Ttle
equipment
and
has
reached
its
Possible Offsets
earlier but one point below Au- period is completed. Dealers' sales
Output of the nondurable
soft goods industries as a whole
in
September,
were
when
being offered
on
1957
terms, exceeded those of
t
tei^nf
test of
.
f0Ur£h
iourtn
.
quarter
the
quarter, tne
cars
attractive
has been steadier in recent months
a
year
the new models will
con-
minus signs seem to have a little
more force than th?se on the plus
tinue for some time ahead.
side' Therefore it is questionable
spending
"A
third
in
factor
is
consumer
general, which
has
of^thpUP we,.lso.far jn 19^7,
innLpI fnJ«p
fj hmmary estimates for the third
obsessed
reality
In-
crest."
large com-
preconceptions
completely lost
structure of four and
lion
such
to
business
The "Bulletin" notes that the
<<third Quarter output of factories
and mines remained within the
nrnfitQ
Possible
vohd
Road
securities
mininS the outlook.
or
such national
QWoV
make
ness
with
equal patience and skill.
measures
defenses.
the
concentrated
done.
of
have
the
vitallv
managing
that
so
the
staff has
and
in
of the organization
coordinated
nies
with
Alone
th°f faciiities
°
is
index of the strength of our
of
nersonnel
technical
"f.1
state of technology in our country
an
research
hs
nntinnwiHp
prafpH
lriliti'
that
recognize
Thev
Doubtful
principal
JB?taJtf, es.?a,®
S in+p!
need
Take
ter
pomnanv
Questions the importance
of
f
fni ^ \foovc
T
is
perfectly clear to
without
that
me
I
reason
possible offsets
1958 autos,
in
.
has opened
Hill
jt
those ;
Production this quarter will equal
that of the third quarter, the
Cleveland Trust Company "Busi-
Americans
really want to see the great
companies of our country made
such
best able to
are
aff0rd the risk and make the nec-
who
smaller.
investment,
substantial
ancj
Large companies
having
had repeatedly to defend my own
company
trial
rjsits
Jr
Birch
in
a
.
Y—Wil-
engage
Fourth Quarter Business
•
N
Cleveland Trust notes fourth quarter possesses minus signs
with little more force than those on the plus side. Examines
Private indusinvolves long-term
accident.
no
££
LOCUST VALLEY
jiam g
law
mhiCh ar?v,hld ">ost ardently by
tice, is
.
,
v.
o.
W.
-
says, oy a Kina or Lxresnam s law « ^ ax, ^
the more rational is overcome by
^ ^ rational and th0
inions
£. F.
ets, which are frequently out oi those with the most passionate
corporations by total assets, sight but never out of mind these will."
petroleum leads all other indus- days, suggest that whatever may
When we in business learn to
tries with 21 companies among the be said about the
inadequacy of represent ourselves more effecfirst
100;
including the largest u. S. postwar research and devel- tively before the public and in
company of all.
opment in this field, an intensi- dealing with government, we will
In the second place, your indus- fied and coordinated effort must
regain some of the influence we
try is constantly engaged in de- now be undertaken. And it goes have lost in the formation of
fending itself against legislative without saying that the research sound national policies. But more
investigations and proposals that facilities and scientific manpower important, we will have increased
typify the offensive against large of private industry stand ready to our
potential
for
contributing
companies. The bills in the last step up their already considerable constructively to the prosperity
Congress to destroy your present efforts in this area to whatever and security of our country and
system of service station opera- extent is necessary.
tion, and to require you to blend
That industry, and particularly
costly gram alcohol with- your
jarge industry, is in a position to
gasoline, are the sort of things I cjQ
an(j to do it on short no-
havq in mind.
.
& Co., Inc., 215 Wast Sixth Street.
by those with different views, he He was formerly with Hill Rich-
that
manutactui
0.
Varnedoe,
r>'
vannah, Ga.; Mortimer A. Cohen,
resident partner, Sterne, Agee &
Leach, Montgomery, Ala.; and
Edward S. Lewis, Jr., partner,
Lewis & Co., Jackson, Miss,
a
States, and,
freedom of speech dpgg not work
the capacities at as it is meant to work." For when
*sent an some men s ideas go unchallenged
sccuurw
}u dlufulL
being,"
^ ,s
committee No. 9: rrankA. Cms-
United
picture,
-
election of the following
ing
o"r
bearing
inflation,
importance of the democracy is to be committed,
universities, with their strong ern- heart and soul, to the thrilling
phasis on basic research, may well struggle of ideas which is the only
be understated by the fact that, way that man knows of discoveron
a
dollar basis, they do only
truth.
9% of the total. What I do say is
Bu* men's ideas, unless they are
that these proportions appear to known, have little power, or even
reflect the actual, existing capa- J101?®* "When genuine debate is
cities for scientific and technical ~a
n£'
says Walter Lippman,
SAtoraaSu^
largest
corpo¬
views,
^nld them, on
pynrow
on
am
is
responsible, rep-
union*!.
on
am
1
It
industry.
confident the rar>k and file of
am
T
familiar to the oil
that it
"We
of
issue
know
Know
is
_
-thm'r
f
of
Announcement has been made
as
The
Size
»
ground that
accountable to
more
,
con-
in
power
wronged.
It ooens the
to exploitation of union mem-
ibers
]
of
those
wav
It
misuse
Corporate
T
In
distinctive
own
tribution.
-
.them. But. true though that is, it
.is reaJly beside the point.
The point is that the position of
its
makes
Elects to Committee
—
apply these concepts in their figures shows, significantly, that
thinking and voting with re- more than two-thirds of the inhas put it: "The great change in spect to the day-to-day affairs of dustrial research and
development
American labor unions during the' their community, state and nation. ;is done by the larger
companies,
Somehow we must bring theory those with more than 5,000 empast 20 years has been a general
'shift in power and control from and practice into closer alignment, ployees.
The
results, of
this
the members to the leaders." '
^ ' We «in
business, managers and large-scale industrial research are
other employees, must participate quickly shared by all companies
Experts in this field say that the
union shop and the closed shop- more actively in the civic and po- interested in it. Those small and
litical affairs of our communities medium-sized companies which
in -other words, compulsory uniionism—have been mainly respon-~ and country. "We must first of all incur no expense for research and
.sible for the fact that in many in- v be good citizens, and then we must development soon become a party
stances the rank and file have lost: speak out for the things and for to the commercial opportunities
the people in which we believe.
control of their own unions. When
opened by scientific advance.
Our record on this front is
men are not free to withdraw their
,»■ In this discussion, I do not wish
union membership and financial dismal one, albeit there are today. to under-value the scientific work
'support without giving up their • definite and encouraging signs of the smaller companies, the govlivelihood, their leaders feel little that business management is tak- ernment laboratories, the univerneed
to
be
and
the institutes.
Each
responsive to their ing off the blinders and beginning sities,
.SulpHite, and Paper Mill Workers,
com-
NASD District No. 9
encouraged,
not
they accept their
y.-, .y- work. Of this industry effort, 38%
Americans is., performed under government
A1
l*»
elsewhere contract, mainly on defense
projand they understand them in the ects directed by the government.
abstract.
Too few, however,; use
A further study of the industry
,
,
an objective worthy of our
plete and untiring devotion.
dSrill^
major
.,
or wrong,
the free world. And that, I submit
is
^
union power and the shift in em- '-
phasis from economic bargaining dom, indeed, to be right
to political maneuvering has corner to win or to lose.
27
n
duarteJ.put Personal consumption
«tPPl
SrS
3
Pf^
October» including those on steel $283.2 billion (annual rate), or
operations, do not indicate any 5*4% above the same 1956 period.
thnw
general
unfilled
j
upturn.
Manufacturers'
orders have been declin-
,ast December
jn
°
t
nn
J
and
new
to
higher
Total personal
prices.
income has also
h-
,
°rders have also slipped. Factory
employment
Part, but n6t all. of the gain is due
run
if
though it
•
ahead of last
waIp* • nff
e
a
is slightly below its August and September."
year,
fl
,
28
The Commercial and Financial Chronicle
(2348)
Continued
in Asia, the Near East and Africa.
from first page
two-thirds
About
of
this
amount
has consisted of loans for
Responding to the Challenge
With Trade and Development
people, we may be sure that
the
—higher in fact than
we
United
of Soviet
world domination, no matter what
our military power may be.
will not stay
course
States
or
of
that of the
Western
Eu¬
us
ment
sue
Soviet
purposes.
making
develop¬
loans are
the
possible
construction
in* these areas of such projects as
steel mills, manufacturing plants
for heavy machinery and optical
glass,
power
stations, irrigation
systems and mining industries, to
mention
few.
a
which
tives
world
situation
at this moment.
them
if
now
in
rooted
are
economic
the
number of countries.
facing
they require
We must pur¬
we
are
to ex¬
ercise
leadership in
immediately ahead.
the
preparation
The
period
tradition
Accordingly,
time and
more
than
more
in earlier
of
the
days.
1930's
for
a
three-year extension of the tradeagreements legislation is, in short,
Each of these objectives will be
well
not
tested
next year in the fires of
Congressional and public debate
when two major legislative pro¬
posals will come before the Con¬
suited
to
today
situa¬
s
tion.
Next
year there will also be a
special and very important reason
for
extending
the trade-agree¬
These Soviet offers of financial
rope.
Thursday, November 28,1957
...
gress for consideration. These are
ments authority for at least five
I had the op¬ assistance are intended to serve the reciprocal trade agreements
'years.
■
■ V
- , m
of visiting several of the political purposes of Interna¬ legislation, which is essential to
That is the reason why Presi¬ portunity
In
January the Treaty estab¬
dent Eisenhower and Prime Min¬ the Latin American countries, and tional Communism. They are ac¬ the first of the two objectives I
lishing the European Economic
ister Macmillan, in their Deelaia- of talking with their governmental cepted by the recipient countries have outlined, and the appropri¬
Community will come into force.
on
the occasion of the because these countries are des¬ ation for the Development Loan
tion of Common Purpose issued leaders,
Germany, France, Italy, Belgium,
in Washington last month, have Buenos Aires Economic Confer¬ perately searching for more capi¬ Fund, which is essential to: the
The
Netherlands
and
Luxem¬
served
as
Acting tal to speed their economic devel¬ second. I should like to give
stated that "We recognize that our ence where I
you
bourg, the six governments which
of
the
United
States opment.
collective security efforts must be Chairman
my views on each of the^e legis¬
have signed the
Treaty, will then
It is clearly in the national in¬
I can only confirm
lative proposals.
supported and reinforced by co¬ Delegation.
be committed to establish a Eu¬
what many American businessmen terest of the United States to do
operative economic action."
ropean common market leading to
Trade
officials
Agreements Legislation
acqua in ted
with what it can to hasten the proc¬
Next year, when Congress con¬ and
the full integration of their eco¬
There
is
no
instrument
of
venes, the
people of the United Latin America have been telling esses of economic development in
nomic systems.
This is a truly
us: It is an area where the human
these areas, thus helping them to
American foreign economic policy
States will again have the oppor¬
revolutionary step toward Euro-i
drive tor economic development, resist
the
forces
of
Communist which has been more influential
tunity to consider what "coopera¬
pean unity to which the United
tive economic action"—to use the backed by great natural resources, penetration. For if the Commu¬ over a longer period of time in States
has given its full support.
words of the President and Prime is
producing a tremendous up¬ nists were to be successful in win¬ advancing the interests of the
Economic adjustments,
however,
ning these peoples to their cause, United States than the authority will be
Minister—they will in fact au¬ surge in economic activity.
inevitable as the European
Here again we have an area of the whole of the free world would
thorize
the Government of
the
given to the President to enter Community comes into
being. It
United
States
to
support.
The the world of great importance to be gravely endangered.
into trade agreements with for¬ is
essential that these adjustments
Congress will decide tnis issue in the United States where normal
The world economic setting of eign
governments.
The
trade- take place in a
way which will
of
international
eco¬
the light of the debates which will measures
today, which I have attempted to agreements program has in truth help the Community to become an
then take place. I should like to nomic cooperation — private in¬ sketch
very
briefly,
demands been a cornerstone of American outward-looking organization, in
mention some of the key problems vestment. public lending through
foreign economic policy as well as accordance with the declared ob¬
positive,
forward - looking
pro¬
in foreign economic policy as we the
Export-Import
and
World grams by the United States in a powerful aid to the growth of
jectives of the six governments,
Banks, and the reduction of bar¬ the
see them from within the Execu¬
foreign economic field. What the American economy.
Helped lather
than
an
inward-looking
trade—are we
tive Branch of the Government riers to international
need at this juncture of world
by trade agreements, our exports and restrictive group which closes
and to suggest the kind of coopera¬ helping to produce conditions of events are not "crash"
have expanded to record levels.
the doors of trade with the rest
programs
tive economic action which will economic progress. We should in¬ of an
The
emergency character, but
In
the
President's
General
authority to of the world.
be necessary if these problems are tensify all these measures of co¬ sustained
long - term
programs participate
in
new
tariff
and Agreement on Tariffs and Trade
to be effectively attacked.
operation with our Latin American directed to
the
basic
economic trade-agreement negotiations will we have established general prin¬
To begin with, let us look at neighbors.
problems I have described.
automatically terminate on June ciples designed to make sure that
When we turn to the developing
the world economic situation as it
30 of next year unless Congress arrangements such as the Euro¬
countries in Asia, the Near East
Freer Trade
appears today.
takes the necessary action to ex¬ pean common market will not re¬
and
Africa, we find a sharply
First, we must strengthen nor¬ tend it. Some people propose that sult in higher barriers to world
Today's Economic World
sKort time
A
ago
.
-
-
different1
situation.
are
countries
World
Moreover, the economic growth
of these countries is barely keep¬
ing pace with the increase in pop¬
ulation, with the result that many
Western
War
II.
know, there
back
Last
year,
we
as
set¬
was a temporary
resulting from the closing of
and
Suez
subsequent
currency
speculation. One of the significant
aspects of this economic emeiv
gency was that it was overcome
very largely through normal trade
and financial measures.
Support
for the pound sterling from the
International Monetary Fund and
the Export-Import Bank, accom¬
panied
bv
appropriate internal
policies in Western Europe* pre¬
ards of
with
These
Europe economic
growth has been rapid since the
completion, some five years ago,
of the Marshall Plan program for
recovery from the devastation of
In
people
whose
per
more
than
capita income is little
$100
stand¬
living in the world—some
million
700
lowest
the
per year.
of their
little
ahead of them
see
seemingly
permanent
stagnation.
respect to these countries,
traditional
and
methods
of
financial
trade
cooperation, while im¬
are
not enough.
These
portant,
countries
world
financial
and
all
among
through
trade
reduction
and
the
relation¬
of the free
areas
the
barriers
strictions,
currency
promotion
of
re¬
pri¬
investment, and the stimula¬
tion
of
of
supplementary
public
lending through the Export-Im¬
port Bank, the World Bank and
the
International Finance Corpo¬
ration.
The vigorous pursuit of
objectives over the next
these
several years
Former Methods Found Inadequate
With
trade
ships
vate
peoples
but
mal
tan't
to
is especially impor-
continued
economic
a
few years ago.
ture
economic
growth
policies, both internal
and external.
They have placed
their faith in the competitive en¬
terprise system. They are trying
to cope with inflationary move¬
ments
by appropriate financial
and
monetary policies. At
the
same time they are
seeking to ex¬
pand the basis of their economic
life through wider international
the
European basis through
European
Common Market
and
Free
on a
world
Trade
basis
Agreement
The
Area,
and
on
a
through the General
on
Tariffs
and
Trade.
collective
security system
embodied in NATO is
heavily de¬
pendent on the success of these
efforts.
Japan,
also,
has
from
emerged
the shadow of World
War II.
The
of emergency help
the United States has drawn
from
period
to
a
close.
Japanese economic life has
regained its industrial vigor. The
great need of Japan today is for a
broader
world
"for
market
her
goods and services.
Excessive
restrictions
can
have
no
other
effect
than to strait jacket the Japanese
economy,
standard
breed
come
reduce
of
living,
the
Japanese
and
conditions which
their
Latin
be¬
,
.
own
leaders
faster
America and large parts of
Commonwealth.
It is
British
also
important
our
own
health
the
to
which
economy,
acutely
Asia,
the
many
of which
the
of
Near
Communist
those
East
aware
are
and
of
countries
Africa,
the rim of
on
bloc.
The
people
insistent
are
that their conditions of life be im¬
proved.
The central plank
in the
political platform of every govern¬
in the area is economic de¬
ment
is
of
in¬
is
on
this economic issue that
Communist
propaganda
dangerously
increases
point
we
are
always seemed to
American
business
has
free
me
of
cess
and
and
efforts
our
stimulate
to
that
espe¬
cially important stake in the
free
suc¬
trade
development—over
above the
increased
volume
of business that this would
they
themselves
while
concealing
the terrible sacrifice
and
no
increases
of
foreign
loans, which
conducted
lives, lib¬
possible.
on
a
a
trade
and
being
.are
much greater scale
few
years
ago,
are
concentrated in these areas of the
free world where living, standards
are the lowest.
!
•
1
has
And
successes.
been
intense
op¬
quarters, I would
doubt
that
its opponents really
bbiieve that the program should
be
killed
outright.
It is much
more
likely that the real debate
bring.
be
some
the
as
velop,
American
find
it
abroad
countries
business
impossible
in
the
length of
in
the
of
should
our
normal
programs
those
tion
its
dead letter.
a
with
own
States and
re^t
of
whose
to
standards
larded
measures,
sporadic
applications
short-term
grant
aid,
will
What we need is a
of
Trade
program
nesslike
basis
geared
to
the
The
trade
has
1934,
Congress
-
agreements
originally
was
been
now
1
a w,
enacted
in
extended
by
on
10 separate occasions,
usually': for
three-year period
for only one or
The tradition of a
extension was estab¬
a
sometimes
but
years.
lished
in
back
cf
years
the
agreements
bilateral
the
1930's
were
basis.
proach
is
trade
concluded
.Now,
on
we
as
a
ap¬
the
fective
1960's, the principal
instrumentality for making the
trade-agreements
authority
ef¬
no
economic life in these
on
longer
a
series
of
bilateral trade agreements, but a
single multilateral mechanism,
the General Agreement on Tariffs
busi¬
a
of
areas.
These two
objectives are not
put forward as an ide=dist;c blue¬
print, for the future. On the con¬
they
are
practical
objec¬
and
Trade.
ment
among
but
37
it
The
General Agree¬
with" < negotiations
23 countries 10 years ago;
began
has
grown
to include
Today,
negotiations are
conducted
now
nations.
tariff
simultaneously
In
order
tariff
among
therefore,
a
large
com¬
some
years
to
a
be
low
as
as
between the Comi
Market countries and all the
necessary
mon
other
countries
belonging
the
to
General Agreement on Tariffs and
Trade, including the United States.
These
negotiations
be
cannot
arranged for and carried through
to
completion in less than five
It
years.
that
is
the
strong conviction
our
Trade
Agreements
Act
should, therefore, be extended for
at least
I
this period.
not
am
going to speculate
on
whether the Presidential authority
to reduce duties should be
X, Y
Z
the
percent. I will only say that
degree of authority to reduce
tariffs
our
enable
duct
should
the
be
United
adequate to
States
to
con¬
meaningful negotiations
which
will
result
in
for
the
concessions
useful
tariff
benefit
of
American
exports. A bare mini¬
authority will not be
enough to accomplish this purpose.
of
mum
Tariff reductions should,
however,
be
must,
gradual,
and
be
they
decided
in
care
of
with
upon
the
light of the
particular domestic
of
industries.
Join
In
the
of
extending
President
effective
negotiations,
OTC
to
addition
to
the
enter
trade-agreement
is important that
it
the Congress should now approve
the
legislation which has been
before
it
since
1.955
to
authorize
participation by the United States
in
the
Organization
for
Trade
Cooperation. The OTC would not
affect
American
tariff
depression
when
the
keep this
possible
series of tariff negotiations will
into
not
realities
achieve.
common
power
long-
work.
matter which will take
to
situation
Extension
effectively used.
two
help
nomic
-
The
Trade
Agreements
Act
should, I believe, be extended for
at least five years if it is to be
which
of
by the European Eco¬
Community is a complex
course,
world.
Five-Year
1
suoplerrent
and
financial
Traditional trade
financial
the
establishment
tariff
great
the
future.
Aid
soecial
countries
It would
help in meeting the eco¬
challenge which now faces
no
free
must
trade
funda-
are
If, for example, the
legislation is extended for too
short a period, or if the authority
granted is too small, then, even
though the Trade Agreements Act
may
still be on the books, it
would be
actual
mon
or
industry.
course
trade than existed before. But the
reduce
to
mentalissues.
the
with
trary,
of
United
living are very low, particu¬
larly in Asia, the Near East and
term
American
to
These
the
of
and
authorized
be
three-year
we
which
for
tariffs, and the operations of the
escape clause which gives protec¬
will
become
Long-Term
Second,
time
competitive
has
context
whether
on
program should be extended,
the extent to which the President
operate
to
free,
which
manner
de¬
not
the
be of
unless
centered
extend the program or to dis¬
continue it, but on such questions
nomic
and
parts of Africa.
accident that the Soviet
programs
foreign
in
living standards which
those
It is
economic
undoubted
there
position in
tions,
the
national
its
while
Unless trade is freed from restric¬
great
in
achieved,
made
the
die.
for the program as a whole, based
on
part.
a
an
most
For
to
which
growth
have
is
effective.
Communists
.
of
system
American
.tradition.
Rather,
it
velopment.
and
more • economic^
will find itself faced with govern¬
development. If the free govern¬
ment enterprises and state trad¬
ments in these countries cannot
organizations,
which
will
deliver on their economic prom¬ ing
ises to the people, they will be change the whole nature of inter¬
national business as we know it
in constant danger of
being re¬
and as we want it. Our trade and
placed by some form of totali¬
investment programs are vitally
tarianism.
important to American business
It
America,
almost
alone
the developing areas, has
Since 1954 the Soviet bloc has
achieved
a
very
high rate
of extended credits
totaling $1.1 bil¬
growth over the past several years lion to underdeveloped countries
among
international
societies of which
It has
International
to
to
resources.
of
are
the
on
the opportunities open to them in
the
less
developed countries of
thereby today than
could
politically explosive.
hope that they
forward
Communism
erty
by
the
rejst of the world against Japanese
trade
of
The
to
reason
legislation
allowed
questionably broad public support
Latin
the
are
move
basis
sound
on
economic
trade:
can
be
now
suspect, however, that this would
be generally recognized as an ex¬
tremist, viewpoint. There is un¬
will
the
there is
Today the governments of West¬
ern Europe have staked their fu¬
trade-agreements
growth in Western Europe, Japan,
going
through
a
creasingly interdependent w i t h
vented
the kind
of
balanee-of- rough period when they need ex¬
the rest of the world.
And, fi¬
payments crisis and widespread ceptional help from the outside if
nally, it is essential to the eco¬
economic
controls
which would they are to get over the early
nomic
and
political cohesion of
have characterized European re¬ developmental stages.
After that,
action
the
should
regulations. There is
domestic
any
prehensive
other
the
this
OTC
trade
need
to
score.
would
the
Tariffs
benefit
failure
deny
use
to
of
General
and
ap¬
On
the
enhance
agreed
This
export
American
'improved
to
obtain
on
would
trade.
OTC
approve
ar¬
upon
Agreement
Trade.
our
to
machinery
they
already
for
be
effectiveness of the trade
rangements
in
industry
on
hand
and
no
Our
would
industries
the
administrative
make
benefits
certain
that
previously
.Volume 186
negotiated
their
on
Number 5694
by
The Commercial and Financial Chronicle
.
States
United
the
.
.
behalf.
thing more than the old Mutual
Security program under another
will
it
name
have
be
to
given
free of
appropriation
require¬
ments, to enable ,it to establish
field J which will be considered by the confidence' "hecessary ' to its
Congress next year is the:appro¬ long-term purposes. As a mini¬
priation
for
the
Development- mum Congress should now ap¬
Loan ; Fund.
In
establishing the propriate the full amount of $625
Fund; last summer the Congress million already authorized, thus
recognized the need for new con¬ bringing the Fund's capital re¬
cepts and new techniques in ex¬ sources to $925 million. Although,
tending economic assistance to the this is short of the full require¬
less developed areas of the free ment,
it should be enough to
world. The Fund was set up, with establish
the
Fund
on
a
firm
a small initial appropriation, after
footing.
a thorough-going and
critical re¬
Development Loan Fund
i
enough capital resources,
The second major piece of legis¬
lation: in
the > foreign
economic
annual
.
examination
of
Mutual
the
Program < conducted '-by
numerous
public
and - private
Continued
agencies, including the Executive
Branch, two committees of the1
Congress and several universities,
business groups and private re¬
'
institutions. - *■'
Out
number
of
-
»
;
important
Conclusions
'
First, the
United States has a
policy interest in the
vital foreign
economic development of the
standard-of-living
free world.
of
areas
low
the
from
page
time to
as¬
some
come.
trend of the
ward
should
such
be
assistance
than
is
special
long-term rather
short-term if true development
be promoted; should be
form of loans rather than
to
incentives
economic
if
in the
grants
to
are
be
preserved in the developing coun¬
tries
should
and
extended
be
on
individual project basis rather
on
an
overall country basis
an
than
if
technically and economically
sound
development
is
to
be
in
down¬
past ten
of our
years.
terms
com¬
cargo,
the
southwest.
and
south
the
reflects
in
recovery
fact
terms
of
But
that
it
our
absolute
tonnage is lagging behind the in¬
creases
at
competing ports.
Com¬
pared with the 1947-1953 average,
York's
competitive share of
general cargo through
the ports of the United States has
New
the flow of
declined
from
States
United
34.5%
the
total
general cargo
ton¬
today.
to 25.9%
nage
of
Unfair Rail Rate Differentials
realized.
development
should
purposes
such.
as
confused with
should
It
not
be
be
concealed under
or
defense
support, military aid or
other types of assistance provided
for in the Mutual Security Pro¬
This is essential to public
understanding and confidence as
well as to governmental account¬
ability.
gram.
-
Fifth, such assistance should be
on
a
businesslike
administered
basis
through
anism such
rather
mech¬
banking
a
development fund
as a
in
than
a
which
manner
would require Congress
each year
appropriate funds
on the basis of tentative plans.
The Development Loan Fund is
now being organized. The legisla¬
to authorize and
of
New
York's
superior
service,
all
Despite
in
attractions
despite all of our efforts in pro¬
moting the commerce of the port,
we
cannot escape the
economic
of the fact that
consequence
our
competitor ports have a built-in,
artificial advantage in differen¬
tion
that is slowly
diverting larger and larger per¬
centages of the country's tonnages
away from New
York. If these
artificial
were
railroad
rate
handicaps
removed, the competitive po¬
of the ports, particularly
sition
Baltimore, Philadelphia and New
York, would be equalized and we
would each be able to solicit cargo
on
the basis of
respective port
our
provides for a Loan Commit¬
consisting
of
myself,
the
President
of
the
Export-Import
advantages in services and facili¬
ties for the handling of overseas
cargo.
tee,
and
the
Director
of
the
-
The elimination
entials
is, in
our
of these differ¬
opinion, the real
International Cooperation
nut that New York must crack to
istration, to establish
check
Admin¬
basic terms
and conditions for the
erations.
Loan
Fund's op¬
inquiries and pro¬
beginning to come in
and
are
being reviewed in the
light of the Fund's objectives. The
Fund's
operations
will
not
be
posals
are
confined
geographically, but
with the lowest living
countries
standards will have
All of
who
us
are
priority call.
a
concerned with
the management of the Fund will
cooperate
vestors
fully
and
institutions
but
private in¬
lending
sure
on
that the
compete with
no way
will,
stimulate their
much
with
established
to make
Fund will in
them
the
overseas
contrary,
activities
possible.
However,
the
future
of
the
Development Loan Fund is not yet
secure.
For
in
authorizing
the
as
Fund
only
as
the
a
Congress appropriated
portion of the resources
needed to make the Fund a con¬
tinuing and effective institution.
Congress appropriated only $300
million for the fiscal year 1958. It
also authorized the appropriation
of $625 million for the fiscal year
1959.
If
nages to
the
Fund
is
to
be
we
protect
in
will
do
can
to
serve
some¬
slow
the
from
away
us.
fort will go
drain
of
cargo
Success in this ef¬
far to assure the con¬
tinued
prosperity of this port, if,
however, the ports and the rail¬
which
roads
opposing us are
maintaining these
rate differentials, - they will con¬
tinue to whittle down our port's
pre-eminence and prosperity.
I
regret to say that one of the
leaders in this fight against the
Port of New York, of this effort
to divert our cargo, discourage our
shippers, bleed away our traffic,
is the Pennsylvania Railroad.
successful
are
in
the
For
as
must, the
we
economic and political institutions
:
-
-
Progress
railroads whose real interest is in
City, the New YTork Central,
ley, have published tariffs which
would reduce all export and im¬
brought to bear by the user groups
on th^ Seaway Corporation
itself
and
both
on
the
Executive
and
Legislative branches of the Fed¬
eral government.
which, as I have indicated,
originally arose out of a differ¬
ential in ocean shipping charges
favored
New
York.
As
a
ore
If the powerful
,
gressional support for the Seaway
in 19531 are successful again, and
ship cargo along the Seaway'
give-away rates, the diversion
from this port will be
can
at
of tonnage
most serious.
•
finds
it
cost
the
is
of
doing
terrible burden to
a
significant that four
major New York rail lines which
are
engaged in the same freight
handling activities at this port, are
actually seeking to lower their
export-import rates in order to
always
and
of
other the Pennsyl¬
~
eminence of the Port of New York
are,
meshed
of
;;
The welfare and continued pre¬
in
problems;
and
have
never
a
triumphs.
been, en¬
ending series
crises, progressions
The members of
N. Y. Chamber who live with these
problems and from time to time
rejoice in the port's progress will,
I know, be as determined as ever,
that this port will continue to be
the: nation's-pre-eminent gateway.1
And the exports and imports that
pass through the gateway of the
between the Port of
Port of New York, our exchange
achieve
equalization
with,
the
Pittsburgh, Buffalo
of goods and services with other
rates at Baltimore. T';
and points west, to
exactly the
nations, will continue to be a
1 am happy to
same
level
of
rates
as
apply
say that a host of
measure of the nation's economic
through the Port of Baltimore. At New York and New Jersey port and
military strength and of the
present, as you know, Baltimore interests have intervened in this
strength of the Western World. enjoys ail * arbitrary rate" advan¬ case in support of the railroads
tage, otter, the Port of New York which recognize that their inter¬
With Carr & Thompson
of 60c 'a ton on all export and
ests apd those of the Port of New
(Special to The Financial Chronicle)
import commodities moving to and York tkte interdependent.
This
from the west, and the Port of Chamber, of
BOSTON, Mass.—Sherman Roscourse, was
among
Philadelphia enjoys a 40c a ton the first to support our New York siter has become connected with
Can; & Thompson, Inc., 31 Milk
advantage over New York. These railroads in this fight.
Street. He formerly with Adams,
differentials were established in
I am
port .rates
,
because
1877
time
that
at
the
confident too that the
ufacturers
shipping rates through New
York were cheaper than shipping
port
charges through Philadelphia and
Baltimore. They represented an
ocean
effort therefore, under
and
shippers
man¬
of
the
of New York and north¬
New
Jersey will support the
With Lee Higginson
New York railroads in this effort
<Special to The Financial Chronicle)
ern
to equalize New York's rates with
that
equalize
to
the
only
has
differentials
for these
wiped out.
excuse
been
Nevertheless, the differential in
expori-iiiipurt rail rates a^ains*.
York has persisted and the
New
Pennsylvania
Railroad
dis¬
has
and opposed any effort
correct their injustice.
couraged
to
customers—the
phia,
the
continued
The
magnet of these
Phila¬
delphia and Baltimore and the
steady diversion of freight from
ture
centered
are
York
New
to
rate into line
in the
publish
bringing
tariffs,
and
interest
whose
railroads
the
new
New
of
rail
York
with the rates avail¬
York.
from
diversion
the
cargo
York, they must be
accept the
conse¬
And they certainly must
officials,
tries
BOSTON, Mass.—Arthur W. Ed¬
wards, Sr. is now affiliated with
Leward M. Lister & Co., 80 Fed¬
eral Street.
to
action to such
lic
of
Lister Adds to Staff
(Special to The Financial Chronicle)
they
New
prepared
Mass.
now
S. Burbank Company.
son
and
If
choose to support a policy which,
their own words, has as its
objective
—
Gilbert J.
connected with Lee
Higginson Corporation, 50 Federal
Street. He was formerly with Nel¬
BOSTON,
Bouley is
Philadel¬
and
a
banks,
our
all
inevitable
With J. C. Flax Go.
re¬
(
policy of our pub¬
of
indus¬
our
who
us
have
a
St. Lawrence
Special to The Financial Chronicle)
SPRINGFIELD, Mass. —Harold
now with J. Clayton Flax
J. Bill is
&
stake in this port.
Co., 1562 Main Street.
Seaway
final port problem
which demands our consideration
There is
is
that
and
one
the
raised
been
issue
the
about
which
toll
has
struc¬
and
ture
on
Baltimore. The Pennsylvania Rail¬
The
Seaway will begin operation
through
able
and
road
the
Philadelphia
New
fu¬
Port
of
in
finally forced the
has
York
of
be prepared for the
cheaper rail rates through
New
Port
the Port of Baltimore
Port
quences.
Hearing to I5e Held
Mudge & Co.
area
those con¬
those of their competing manufac¬
the oppor¬
turers and shippers in the cities
tunities of the three ports to solicit
which are favored by the Penn¬
freight. About 1935 however, all
sylvania Railroad. For that rail¬
ocean
shipping
charges
were
road itself has three great port
equalized through the three ports,
ditions,
Baltimore
&
Ohio
immediately retaliated against the
Port of New York and against its
efforts to obtain a fair and equal
rate
new
structure
rates
maintain
by counter-filing
would in effect
differentials which
which
the
l'avor Baltimore and
As
all
a
Philadelphia.
result the ICC has suspended
published rates and will con¬
hearings on this critical issue
duct
the
in
near
future.
Pennsylvania's Attitude
as
a
the St. Lawrence Seaway.
competitor of this port area
in 1959.
Because of its
extensive
testimony which attack
and have the calculated
urging all shippers who can
to ship through our com¬
this port,
effect
do
so
ports. A few months ago
when our people were pleading
with the Pennsylvania not to at¬
petitor
only
utterly
un¬
fought
long and hard to block the Sea¬
way.
The President of the N. Y.
Chamber, Mr. Perry Shoemaker
was
a
leader in that fight.
As I
sound
economics,
m any
have
said, having lost the light,
only be philosophical about
the public expenditure of the larg¬
est amount of money per ton of
we can
freight to be moved that has ever
been spent
by any government
But we can't be philo¬
anywhere.
The Pennsylvania has now filed
through the Port of New York. If
prosperity
export-imoort
In this ef¬
obtain port equalization the
pending
ential
But
establish compen¬
New York and
fort to
this
export-import differ¬
an
business here
rate equalization case.
than
continued
true it would
were
to have little relation to the
issues in
it.
to
tolls.
Nevertheless, the
heaviest pressures are being
and steel interests wl) ic h
Philadelphia or Baltimore. - obtained Administration and Con-:
Even if this
seem
vania
the
nation's
largest
rail
carrier, they also handle the larg¬
est amount of rail tonnage moving
port's
that they
prefer to divert their ton¬
some reason or
past 35 years the Port
Authority has been fighting for tack the Port of New York in this
New York's position in rate cases manner, one of the principal offi¬
before the ICC and other regula¬ cers of the Pennsylvania said that
tory tribunals. For a much longer if he had his way, not another ton
period than that, the N. Y. Cham¬ of freight would be moved into
ber of Commerce has taken a vig¬ New York City. We have argued
orous
part in these proceedings. with the Pennsylvania that it has
Yet, I dare say that neither of us much more to lose by its effort
has ever been involved in a case to divert cargo from New York
that meant more to the course of than it has to gain. They are not
the
would
vital national interest
our
strengthening,
of the free world.
cargoes
•
Bank
ness
that
tially lower rail rates on exportimport
in New York and
these ,;tvvo programs
are
funda¬
Without them, little else
mental.
so
Fourth, economic assistance for
labeled
But
.
handling freight through
New York indicate only that for
1953 and
the
they
the statutes
satory
cost
share
petitive
general
also
Third,
aviation.
Erie, Lackawanna and Lehigh Val¬
over
that
obvious
seem
that it costs too much to do busi¬
civil
this
reverse
would
are
29
their support of this principle and
recognize their obligation under
support its allegation of the high
is, packaged
other than bulk—came to
13,000,000 "long tons, bal¬
anced almost evenly between ex¬
ports and imports. This is an in¬
to
it
matter of fact the statistics which
the Pennsylvania has mow filed to
New'York—that
of about 9%
prosperity of this port and en¬
couraging our manufacturers and
shippers to move to other areas,
treaties': to
nearly
continues
props
continued
the
under
going to suffer with everyone
else, Their reply is an allegation
cargo,
crease
from
out
other economic
activities ranging from investment
many
and
cf
they succeed in pulling the
which
.
for
embraces
15
of United States
it represents the
sistance by the United States in a
lowest
competitive level in the
form which will reinforce private
investment
and
normal
public port's history. This decline in New
York's share of our foreign com¬
lending without interfering with
merce is partially
attributable to
either, is required for this purpose
the growth of new industries in
and will
be required
financial
special
have
New York Port
However,
■
Second,
I
programs
,
a
conclusions
emerged, which I shall summarize
briefly: 1 •'y >' v; .• -f:"
;
two
j
strengthened tradeagreements
program
and
an
aaequate Development Loan Fund
—do not add up to the whole of
our foreign economic policy, which
;
•
re-examination
this
of
The
described—a
Se¬
curity
search
(2349)
sophical to the extent of accepting
a double penalty in having to bear
the tax burden of paying for the
waterway
losing
the same time
greater quantities of
and
even
at
foreign trade through bargain tolls
and still heavier subsidies.
The
York
New
Chamber,
the
than
thirty other business, trade and
governmental groups have organ¬
ized in a joint effort to assure the
self-supporting toll structure that
all of its supporters promised and
Port
Authority
which
gress
to
and
induced the
more
votes in
Con¬
that finally made it possible
the Seaway over.
It is
put
gratifying
ministrator
to
of
note
the
that
the
Seaway
Ad¬
CANCER LIFE LINE
Through films, pamphlets,
posters, exhibits and lec¬
tures,
our
life-line of
business and industry.
)
They learn facts about
cancer
which
could
mean
the difference between life
and death. For information
about
a
in
program
your
plant call the American
Cancer Society or write
"Cancer"
care
of your
local Post Office.
Cor¬
poration and his Canadian coun¬
terparts have repeatedly affirmed
cancer
education reaches people in
1
•AMERICAN
^
CANCER SOCIETY
30
Commercial and Financial Chronicle
The
(2350)
...
Thursday, November 23,1957
pj
Continued
from first
relatively
The
(4)
page
level
of
main
which, by placing the strain
periodic adjustments partly on
the whole community instead of
almost wholly on the affected in¬
dustries, areas or individuals, have
eased the strain of these adjust¬
cause
nomic
ments
ser or
budgetary mismanagement, mone¬
mistakes, international im¬
balances, and mass speculative
of easy spending and the accumu¬
lation of debt, and made thrift an
attribute of. saps and suckers.
the
movements
which
made
virtue
a
veloped
prices. As costs become rigid, and
prices attempt to follow costs, necessary
adjustments are impeded.
Eventually
tliat could threaten
by using it tf try to cover up the
defects
ot|ier parts of our economic program. Those who seek
to promote ^maximum production
wider
an<J employment by creeping in-
phasize the need on tne part of all
of us for a fuller and broader understanaing or how oar . economy
operates, and of how our financial
institutions and practices fit into
their present environment. Monetar> policy cannot save us from
done
fundamental choice. We
can
plump
for
we
try to'
Cycles
purchasing
power
has
to
tended
but
cause
part of
currencies
fluctuate
with
the
effect
an
as
or as
one
complex of intermingled
a
and effect.
cause
however, the
of
And these
movements .have
been
with
price
but
an
consistent
progressive
growth in real per capita income
uneven
rate of
principal
a
fluctuations.
downs of business, not as
ups and
investment
new
of economic
cause
than
the short-term swings,
on
has
become
and
more
It
ac¬
more
cepted
technical advances, to combat ris¬
Business fluctuations,
the
and
short-,run fluctuations in the pur¬
chasing
the
of
power
currency
accepted in the past as
were
natural
phenomena, arising out of
the vagaries of human nature and
the imperfections of human fore¬
sight and planning. We were al¬
ways expecting to do better as our
knowledge of economic matters
increased,
that
so
greater control
destiny
by
could exert
our economic
we
over
half
that,
of
to
1958
obliterate
abreast
keep
would
the
beyond.
too,
didn't expect excesses and errors
of
dim
view
of
but
the
not
years
pri¬
or
The
great
(although it is not always
administered and used),
liquid savings,
with knowledge of the provi¬
wisely
and
substantial
sions
our
temporary
ness
consumers,
high current income,
ready access to consumer
Wesley Mitchell, who
was one of
greatest students of the busi¬
of
mass
with
with
with
While these older concepts ruled,
which
have
been
made
for
easing of individual
distress, should not be
economic
cycle, could write a brilliant
chapter in his pioneer work on
this subject, suggesting the way in
which prosperity breeds crises and
depressions. He wrote of the slow
subject to fears and apprehen¬
as
they have been in the
past. Although consumer behavior
accumulation
nomic
dynamic
of
stresses
brought about
in
our
prosperity
gradual rise in
economy
a
as
the cost of
doing business, reflect¬
ing and reflected in a rise in prices
goods and services: of the
tinued
con¬
equipment
of less efficient plants,
and
labor; of the
increased
business
use
tolerance
of
waste; and of the developing ten¬
sion or tightness in the
money and
capital markets.
Eventually
these
strains reached the
the
weaker
stresses
of
the
business structure, and their dif¬
ficulties
were
communicated, both
is
the
least
predictable
forces,
expansion
and
of
of
eco¬
although
the
of
range
the
con¬
choice, whether to spend
is a hazard as well as
sumer
save,
or
the insistent desire of
for better
to
the
living
as
avoidance
our
peoole
contribution
a
of
and
severe
extended economic adjustments.
Growth of Rigidities
The gains we have
made, how¬
have not been without risk.
ever,
The
greatest
of these risks, per¬
haps, is that we have and are in¬
creasing the rigidities within the
to
corrections which
to
wage
.
discharged, past sav¬
exhausted, consumer
were
demand for end products declined,
a decrease in business
demand for
materials
more
followed, and a still
shrinkage in the ag¬
severe
gregate demand for capital goods
gave prosperity its mortal thrust.
Then,
over
reversed.
in
the
time, the
There
process was
reductions
>were
of
cost
doing business, in
prices and in wages; the efficiency
of
management
creased
profits
as
and
and
labor
jobs
in¬
were
less readily come
by; weak enter¬
prises were weeded out: bad debts
were
charged
properties
stocks
were
growth
Partly
as
Now,
believe
job
we
have
that
than
business
we
this
cvcle
can
do
tem, and
we
suggest.
tain
to
better
of
would
We have developed cer¬
shock absorbers in our econ¬
dynamic
stability.
our
that
It has
of
power
the
to
appear
be
incompatible,
to
one
'
the piper, and the
Everybody, or
is already try¬
indirectly to hedge
pay
ing directly or
against inflation. Escalator clauses
one
exam¬
ple.
Variable life annuities to be
issued by insurance companies are
another. The remarkable growth
mutual
of
funds
which
small investors is
read
even
that
cater
third.
a
in
to
have
I
is
the
trend
of
Four
of
political develop¬
increased the ri¬
sys¬
ultimately find that
these
rigidities
are
of
particular importance, I think:
(1) The
one-way
most
(2)
wages
flexibility
and other
been
industries to
(3)
So
-
called
certain
which
"com¬
accommo¬
chasing
parity
prices
for
products,
to withhold
from
the whole
economy the bene¬
fits of technical advances in
agriculture.
which increases
power
the pur-
as
the
of
local
cur¬
is
to
easy
could
that If every¬
see
protect
r
themselves
inflation* by these or other
devices, we would really have
changed nothing by debasing the
counters we use as money, except
as
our international
position was
compromised. The financially nimble and
the
organized power
groups can disregard this possibility, only because it is likely that
a
considerable part
of the popu-
lation—the
economically weak—
never will be able to
protect itself
comnletely from the hazards of
inflation.
the
be
kind
want
we
This would not
of
or
a
seem
situation
which
which
be
can
to
em-
braced
openly and officially
wisely bv either political or
and
eco-
nomic leaders.
our
climate, which I do not think lends
itself
readily to run-away inflalion, is the idea P-at a little bit of
inflation—a
decline
in
the
tranquilizer which
can
we
take
regularly without harm. Or
maybe I should compare it with
the
"divine
mushroom"
made famous bv
of
recently
that avid reader
the "Daily Worker" and Vice-
President of J. P. Morgan
Gordon
Wasson:
bility of the purchasing power of
the dollar, are incompatible' ancf
that, therefore, the purchasing
power of the dollar must be £ro-;
gressively reduced in- order;; to
keep our economy in an upward
trend. The evils of inflation are
too serious, as experience h.ere and
again, to counsel embracing
which, when eaten,
almost
&
Co.,
the moment
For
danger" may
The next several months present themselves as
a period of uncertainty in our eco-
continuous
inflation
or
less
homeopathic doses
we
we
can't
have
more
or
less continuous hieh level producm.uuuution
and
employment, which is
the main
is
It
<
nohnow
are
of
our
fairly clear
straining the
economic britches
and that
were, say a,year ago,
indigo has washed
some
rosy
into
the
expectations of what the last
half of next
jn
as
and the first
year
year may
bring forth,
the longtet? run, however, the
rigidities
cluced
which
into
attitudes
our*
we
.
have, intro-
economy,
which
and the
have „devel-
we
guide of economic
in default
efforts,
better
or more
to
nomic destiny.
ero-
strenuous
direct
our
eco-
Despite mv admis-
sjon that I think that the odds are
in favor of inflation, over time; I
have
not
given
hope that
up
we
shall make the ef fort necessary „to
'
chance the odds
'/.--/.v.- \
This is
.
'
Good Time
a
: >•
•
•
better job of dividing up the rewards of our performance, so that
the consumer—that is all of us—
will get a break, and so that stra-
tegically placed power groups will
not be able to preempt all, or too
large a part, of what should be a
community dividend,
•
The monetary authorities would
still have
important job to do,
an
Qf course, in this
tomorrow."
Let
"better world of
add a word,
me
therefore, concerning a step which
recommends itself particularly to
me
because
It is
tions..
a
of my past associastep in the general
oped toward production, employ-
direction of seeking a better outstability of the currency,. come of our economic efforts
strengthened an through a better understanding of
inflationary bfhs, which has been our economic
environment and
ment and
have
created Mr
accentuated
of
in
this
bv
the diffi-
cbntfolJing the Federal
processes.
I am an unabashed ad¬
vocate
an
and taxation at all levels,
of
era
suppressed
uneasy
peace
or
Advises Monetary Authorities
This is
no
reason
for the
of
intensive
to
study
explore and explain the ways in
which
war.
of
—-
•now
affairs.;
we
seams
cuitjes
of
the
have diminished.
further
is,
giop
be frank if l ipid not. admit that" pitious time for us to try to rethe odds still appear to be in favor verse the trend toward economic
of inflation—in; favor of debase- rigidity.
And it will be a propiment of the currency—over time, tious time for us to begin to do a
gpdly state of well being, budget,
assumption
here
course, that without more
should not aban-
we
don the dollar to continuous
.
produces
an
pro-
'..Certainly
gressive debasement of the cur- - This would be a good time to
rency as an economic way of life: start. If the present wave of capiTo fail to deny ourselvesrthe stim-. tal .expenditures has passed its
ulation of an increased use -of Crest, as seems likely, and if the
credit, when more credit will no plants we have been building and,
l°nger stimulate increased' pro- jhe new equipment-we have been,
duction, but will dissipate itself installing are yet-to "reach their
higher prices, would promote maximum production -of civilian
unhealthy speculation and accen- ^oods, as must be so. the bases ton
tuate the basic^ causes of instabil- further increases in productivity
hy in our economy."
and a more competitive economy
Having said till this, I would not have been laid. It will be a pro-
mushroom,
a
.shall have,
ivi
pur--quarter of this
chasing power of the dollar of say
2 or 3% a
yqar—is a sort of eco-
we
performance under the
that high level production: ppd_
employment, and reasonable sta-'
that
economic
choice,
to struggle with intractable prob-;
such .as those J ,have mentry -to;.nhr tiohed, and with all of the various
causes/of ! instability in our eeopresent system or devise
; a 'Mew - nomlc life. This prescription -may;
system.
•
; ;'f
seem complex and extremely di.fThese are reasons why
I.'jvpufd Jicult." It is. But I am afraid that
not want our monetary
authorities .we can make real ahd sustained
in
r*nnni
tho rinoefiAr»ol-\1a
rvnAOhoeo
to accept the questionable "dictuhi progress in no other way.
nomic
An Unproved Assumption
More insidious in
fulfill'the" potentialities "of
.To
this, better
We had better
our
abroad has borne witness time and
fluctuates.
rency
It
stage
a-form of bank deposit
created
The
agricultural
tend
advanced
more
decreases in amount
or
nomic
of
pensations" of labor, to some
extent regardless of the
pro¬
ductivity factor.
The
tendency of prices in
some
a
than here
has
our
break but cannot bend.
can
in
one
worked out,
but'I^dpn't
,we can or. should ^akfedt
official.
are
in
.
badly.depreciated coimy'^uiaybe;/
that is the way it has
■at times- in the past;
prove
labor contracts
growth
activity depends, if it is4b;"6e de- -economy-which implies a certain'
c^ed in advance-that, ;repay|nCTitYdegree of difficulty in making along-term debt; will surely be profit or holding a "job. ;;.1Y
almost everybody
in
rt' prov'c-ments
which 'the rate fof
productivity permits.'
and'beyond this debat- It is an eeonomywhich provides
able swap, is the question qf?what-'great incentives, and which asksy
eventually will-happen to our sysf1" value received from management
tern
of long-term - contracts;
on -.and. labor; from farmer and indus-'
which so much of j odr eccmbmic trial worker; it * is" a'.^competitive'
State of Long-Term Contracts
Above
become inflationists there will be
no
,
.
di¬
a
prop up with perpetual inflation.,
concern
'
dollar
will be arranged
vorce
which
economy
,
desire
methods.
early summary
behavior
may
are
date too slowly to changes in
demand
and
in
production
reason
a
of
almost
gidities within the economic
Cycle
some
of
and
again gave way to
have
belief
by
an
That may well keep us going at
a
high level of production and
employment for some time. But
in my view, that choice woul<d
lead us to economic precipice and
an eventual crash; a crash that
might jeopardize not only our
why and how a rise in prices of, standard of living but our political,
say, 3% compounded annually is4 institutions.
The other choice is
a small price to pay for an unthat of an economy which emphasecured
promise of high. .".leyeF sizes increased productivity, ac-'
production and employment*.. It. cepting
Some
related
ups
and
sounds like swapping "a jpiepshnt, downs with concern but without
few years in youth for ..a long, disipay, and which fits into place'
dreary period of old age.' CFvF
those' economic and social ini-'
employment and stability of the
purchasing
security, and partly
economic
optimism.
Controlling the
of
reasonable
ment,
we
the
part
result
a
result
a
lower
rates; profits finally began to rise
with
as
for individual
down; ac¬
were
reduced,
at
make
inseparable
an
depreciated
refunded
and pessimism
periodic ad¬
written
were
cumulated
loans
off:
fatalistic
the
whether it be good or bad.
blessing, perhaps we may cau-'
body
tiously place some reliance on from
continuous
.
to
some
/I
for..the
wage earner, the small business
man and the "little fellow,'', they
should explain to the holders of
savings
bonds, saving
deposits,
building and loan shares, life insurar.ee
policies, pension rights
and social security privileges, just
intractability has led
very
motivated
is
inflation-—continuing debasement
of
the
currency — is
inevitable,
a
justments;
.
Their
intractable problems.
are
tion
earners were
psychologically,
These
much to develop, Y;
so
If their advocacy of this course
sions
ings
and
the rest of the
economy
Wrong Prescription
so
economy to the point where it may
not retain
enough flexibility to
make relatively small
actually
wUhmtruVhfngTo
foreign
countiy, where admittedly infla-
and
breaking point
members
willing
dance will be over.
(
credit
raw
and
output
nre
willina to sut-
or
and "full"
ing costs, to maintain a competi¬ employment will get the commu¬
tive position which will
assure nity
property while stable cur¬
maximum participation in the ex¬ rency will be given
custody of the
panding markets of the -future, offspring.
:
1
4;
requires continuing research and
Acceptance of such beliefs
of
a
continuing high rate of capital the inevitability of inflation, inay
investment. If this be so, concern
be the right prescription for the
about what may happen
in the more agile members of the comlast quarter of 1957 or the first
munity for awhile, but if v/e all
private
means.
But we didn't expect to
abolish these fluctuations, and we
judgment in the public
contSate
to
we
•
public and
vate domain to go unpunished.
fhrin
projects led others to try to find some paste
for the expansion of capacity and which
would
cover
the
cracks
the utilization of new equipment which these intractable problems
and techniques showed a decided may cause in the economic strucbunching tendency.
In
recent ture; to the elaboration of the theyears, however, business men more ory that, on the
whole, a little
and more appear to have had their inflation is a
salutary thing. Eisights fixed on the long-term ther way it is assumed that if congrowth of the economy
rather tinuous high level production and
tivity.
of
in
costs
Investment
generated by increases in produc¬
of
in
fluctuations
pnnolovmciit
a
uneven
was
Business
In the shorter run,
of
the
and
element
It may
be that we have also de¬
somewhat different atti¬
tude
toward
capital investment
than that which prevailed in the
past, although this is now going
to be put to the test. In the past
tary
unit,
power
1 would
ilntion, induced or Hided by credit ourselves, H.nd probsbly .will* not
Policy, are trying to correct strue- be permitted to try to do so &■
ier
try to shore tural maladjustments by debasing 'definitely.
• ■
.
't, !
activity and fiscal require¬
up the weak spots before essential
the savings of the people and unWe need the information, the
which war commands. Les¬ ments and assisted in maintaining
cost and price adjustments have dermining the system of demo- facts if they can be ascertained,,
secondary causes have been our forward momentum.
been made.
cratic capitalism which we have which will enable us to make a.
has been war, and the
sudden and extreme shifts in eco¬
a
of the dollar, and to gear
availability of creait to the
productive needs of the economy.'
Quite the reverse, but it does eiu-
assumption
an
brace creeping inflation in order
to attempt th^r proof. I would not
want monetary policy debauched
important
of
is
an
Each of these lour factors is
omy
This
wnich is yet to be proved.
not want monetary policy to em-
of
national income.
Consequences of
More Currency Debasement
one form or another, no
matter what the monetary stand¬
ard in use may have been.
The
policy.
absolute
and the
taxation
on
Dire
uation in
high
taxation,
drain
heavy
our
public and private fir:
nancial institutions
best
contribution
mone-
can
make their
the
to
.
achieve.
t
tary .authorities to relax their ef-
ment °f
economic and social
forts
objectives of
our
to
protect
the
purchasing
society, followed
Volume
186
Number 5694
action to
by
;The Commercial and Financial Chronicle
.
equip these institu¬
Continued from page
tions better to
perform their tasks.
This
will
not
Car
from the September figure of
1936 volume of $72,251,619.
policies, debt management and
control, to the heckling of
_a ' group of Senators seemingly
more interested in
discrediting the
$44,690,851 and
Industry
less than half the
was
In the automotive
to
industry the past week "Ward's Automotive
fall
5%
short
of
and
car
truck
schedules
for
the
month
•course.
justed downward to 585,000
It will not be
accomplished
setting up an informal high
command, composed of officials of
duties of their of¬
fices, and somewhat circumscribed
?by the responsibility of office in
,
Ford's
Louisville, Ky., assembly plant has been idled by a
strike since Nov. 5, it pointed out, while Mercury's
Metuchen, N. J.
factory was down earlier this month. Chrysler's Los Angeles
plant: was closed briefly this month because of a strike, while its
Detroit shops have been threatened with closedowns since midmonth. Up to 1,100 workers faced layoffs in a Studebaker cutback.
over-
problems,; although
a move
this..
.
toward better ad-,
'jministrative procedure
and inter-
coordination.
Objective
Study
.
..."Ward's" added that all Chrysler, American Motors and Stude¬
plants scheduled five work days the past week. Adding
.
baker
The job to be done, as I see it,
initially should have the undivided
.>
i
•attention
of
selected
The
board
a
of
solely for this
step would be
first
Saturday to their programs
are 12 of 15 Ford Division plants, all
assembly sites, Pontiac's Michigan unit,
Cadillac in Detroit and several Buick-Oldsmobile-Pontiae
points
throughout the nation.
■
: •/;'
but opq of Chevrolet's 11
inquiry
purpose.
broad
a
Planned last week
board, made up of
competent, objective citizens, di¬
the
and
pressures
noise
of
'
what
tive
dark
find
,also be
for the
corners
•process
which
•breadth
of
could
public
the
create
if
essary
;and
changes
in
range
tutions and
our
The
■.
of
practices
prove
V'"
>
'branches of
step would
be
the
government,"and
The
rest
with
job
is
done
how
in
best
to
-
these
peating them
basement
of
statements
apologize for
now. Continued de¬
the currency, as an
acceptable and accepted
calculated
a
'economic
are
re¬
policy is
debauchery
life, but it
is
of
our
what
likely to get, eventually, if
we
we
do
not
attack
the
problem, of
the powers and limitations of the
monetary authorities with more
force and wider purpose than we
have been able to muster since
ihe passage of the Federal Reserve
Act
in
1913-
'Woodrow
In
Wilson,
the
in
whose
ministration that Act
the
"'in
problem
should
was
be
of
ad¬
passed,
.
'counsel
own
and
wisdom
knowledge,
low self satisfaction
of
or
excursions
they
consumer
the
first
The
making
to
He was
vestors
from
*
With Courts Co.
(Special to The Financial Chronicle)
now
as
the
year,4
soft
with
con¬
of
Iron
steel
for
Steel
and
Institute
companies,
the
entire
having
industry,
announced
96.1%
will
be
of
an
that
the
the
steel-
average
of
as compared with
actual rate of 76.0% of capacity, and 1,945,000 tons a week ago.
//As
a
rate, steel operations
The industry's
based
on
of this
consequence
annual
may
2,041,000
expected
reach
a
drop
in
the
steel
output
15 month low level.
Ga.—Harold F. Hunter
with Courts & Co., 213
East First Street.
week's car output advanced above that of the previous
by 12,015 cars, while truck output advanced by 707 vehicles
during the week. In the corresponding week last year 118,949 cars
and 17,296 trucks were assembled.
Last week the agency reported there were .23,373
in the United States. This compared with
22,666 in
week and
17,296
a
tons.
month ago the
A year
placed at 2,489,000 tons
ago
on
operating
an
rate
as
of Jan. 1, 1957.
was
4he actual
79.7% and
weekly
In
the
The
The
rate
annual
2,171 trucks.
Lumber
over
power
past
that
Shipments 6.1% Below Output in Week
Ended
8.7% below production. Unfilled orders amounted to 26% of
were
Production
orders
new
1.4%
was
3.4%
were
above;
is
not
electric
week's output
of
shipments 3.7% below and
week and 3.4% below
below the previous
production for the like week of 1956.
49% Above Similar Period in 1956
Commercial and industrial failures edged to 308 in the week
ended Nov. 21 from 306 in the preceding week, Dun & Bradstreet,
Inc., reports. Casualties were up sharply, 49%, from the 207 in
comparable week a year ago and from the 205 in 1955. Also,
concerns succumbed than in prewar 1939 when 252 were
the
in the
recorded
similar week.
Failures
involving liabilities of $5,000 or more increased
slightly to 274 from 269 in the previous week, and exceeded
considerably the 192 of this size last year. While small casualties
with liabilities under $5,000, dipped to 34 from 37, they remained
well above their total of
ties in
15 in the similar week of 1956. Liabili¬
of $100,000 were incurred by 32 of the
excess
as
the
week's fail¬
compared with 27 in the preceding week.
Retail casualties remained unchanged
turing
at 149, while manufac¬
slightly to 58 from 54 a week ago and wholesaling
In contrast, mild declines brought the con¬
rose
edged to 30 from 26.
from
and
26.
More
trade
51
businesses failed
commercial service to 22
and
than
last
The smallest rise from
groups.
year
in all industry
1956 occurred in
con¬
struction, whereas casualties among retailers and wholesalers were
half again as numerous as a year ago.
Five of the nine major geographic regions reported slight
increases
failures
during the
edged to 47
week.
In
the
East
North
Central
States,
from
43, in the South Atlantic to 29 from
25 and in the West South Central to 26 from 24.
Meanwhile,
casualties dipped a little in four regions, including the Middle
Atlantic States, off to 87 from 92 and in the Pacific States, down
to 82 from 83. Failures exceeded 1956 levels in all regions except
the East South Central and Mountain States.
The most noticeable
year-to-year uptrends centered in the South Atlantic, West South
Central and Pacific Regions.
Wholesale Food Price Index Last Week
Registered
a
Gain of 3.0% Above Like Period in 1956
After rising for fowr successive weeks
to
$6.29
Nov.
on
12), the wholesale food
(from $6.11 on Oct. 15
price index, compiled
by Dun & Bradstreet, Inc., turned slightly
lower the past week
stand at $6.28 on Nov. 19.
This compares with $6.10 on the
corresponding date a year ago, or an increase of 3.0%.
Higher in wholesale cost during the week were corn, rye,
to
oats, bellies, cottonseed oil, cocoa, currants and hogs. Lower in
price were flour, wheat, hams, lard, butter, eggs, potatoes, steers
and lambs.
The
of
31
index
raw
represents
foodstuffs
the
and
sum
meats
total
in
of the price per pound
use and its chief
prices at the whole¬
general
function is to show the general trend of food
Wholesale
comparable
because
capacity
is
The percentage figures for 1956 are
as
of Jan. 1, 1956.
energy
distributed
by
the
electric
industry for the week ended Saturday, Nov. 23,
week
the week
16th
Nov.
shipments of 479 reporting mills in the week ended
Nov. 16, 1957, were 6.1% below production, according to the Na¬
tional Lumber Trade Barometer. In the same period, new orders
and
rose
advanced
comparable
ended
Nov. 26,
183,000,000 kwh. above that of
by 697,000,000 kwh., or 6.1%
1956 week and
1955.
Commodity Price Level
Showed Moderate
Gains in Latest Week
,
general commodity price level, as measured by the Dun
& Bradstreet daily wholesale commodity price index, advanced
moderately last week from the recent two-year low, aided by
higher prices for livestock, corn, cocoa, coffee, cotton and steel
scrap.
The index registered 277.33 on Nov. 18, as compared with
276.51 on Nov. 12 and t^Uvo-year low of 275.69 on Nov. 8.
At
The
capacity of 128,363,090 tons
of
amount
previous
above
was placed at 7,435 cars and 1,516
Dominion plants built 7,419 cars
comparable 1956 week 8,575 cars and
week
and 1,395 trucks and for the
pro¬
1957, was estimated at 12,136,000,000 kwh., according to the Edison
Electric Institute.
Output the past week advanced for the fifth
straight week.
the
previous
production
Electric Output Extends Its Advance of Previous Weeks
light;and
ago.
Canadian output last week
.
trucks.
sale level.
101.1%.
or
higher than capacity in 1956.
based
a year
trucks made
the previous
ingot production rate for the weeks in 1957 is
capacity of 133,495,150 tons
like week
For the
offices
*
Jr. is
rate
capacity
The
Street, New York City.
previously with First In¬
Corporation.
ROME,
this
■
at 60 John
Last
week
1.884,000 tons of ingot and steel for castings,
Opens
Angslreich is engaging in
.securities business
as
of
73.6% of capacity for the week beginning Nov. 25, 1957, equivalent
was
a
American
operating
duction
Max An^streich
months
sumers
cannot tell/'
Max
nine
ton.
The market tone, however, continues
disinterested in acquiring tonnage.
gross
the exoite-
whither
much
steel than any
24, with the output at 1,960,000 net tons.
Scrap quotations appear to be leveling out after a long de¬
cline, according to "Steel" magazine with composite on No. 1
heavy melting steel last week remaining unchanged at $33.17 a
seek
not shal¬
increase of 12,722 units above that of the preceding week's
output, states "Ward's."
^
an
week ended Nov.
attacked
and
twice
and
more
construction industry.
the pattern shifted. Mill
shipments of finished steel to the automotive industry came to
10,392,996 net tons. Construction took 9,637,526 tons, a record for
the nine-month period. It has seldom used that much in previous
12-month periods.
:
The national steel, ingot rate fell one point to 76.5% in the
In
spirit of those who ques¬
tion. their
a
Ordinarily, the automotive industry orders
an
the
•ment
words
week's car output totaled 153,917 units and compared
141,902 (revised) in the previous week. The past week's
production total of cars and trucks amounted to 117,290 units, or
struction total down to 49 from
•
.
During 1957
car
Last
ures
Mill shipments for the first three quarters of this year totaled
62,589,328 net tons, with construction rivaling the automotive in¬
dustry as the top consumer.
-
other
made
do not
cutting
-
the* public
'
I
still
are
tons.
'interest.
have
consumers
substantial margin. Indications are that
consumption this year will set an all-time record at around 85,000,000 net tons/ Shipments from the mills will not exceed
84,000,000
.
Question
a
'
.
whole, it observed, steel
is.putytripping buying by
jurisdiction here."
or
'
'"
more
^,There is increasing evidence that consumption of finished steel
the
although
prerogatives
I
Narrow Trend in Latest Week
a
it added. /.
supplemental
action by organized private
groups
;might also be necessary or desir¬
able. There is no real auestion of
'before.
a
Lowering of the Federal Reserve discount rate at several
points'is encouraging the hope that finished goods buying will be
stimulated, which will expand forward demand for steel products,
responsibility,
would
course,
'Congress,
final
'
with
This
and
cept heavy plates and structurals.
posals grow out of this studv and
'
•
production for the latest week ended Nov. 22,
1957, according to "Ward's Automotive Reports," was currently
turning out vehicles at the fastest rate of the year.
10
inventories, buying largely against needs in sight and requesting
;;prompt shipments, which are readily available in all products ex¬
'
the
year
Steel Market Holds to
;;; /On the
The third step would be action
/by the Congress on whatever pro¬
gel
listed last
of the current week.
of possible leg¬
by the appropriate com-mittees of the Congress.
real
first
the
but automotive buying has not increased enough to give
strength to the steel market, "Steel" magazine stated on Monday
islation
The
116,852.
for
year ago,
the
ithe consideration
•
formations
company
■n.
to be
.sifting of the reports and find¬
ings of this- board or commission
-by the executive and legislative
of
new
Automobile production is substantially ahead of what it was
second
sifting.
of
was
*
*
v
.desirable.
The
in October, Dun
was 2.8% less than the 120,238
drop of 0.9% from the 117,955
chartered in the comparable period two years ago.
concerns
insti¬
-
Business Failures Rose the Past Week and Were
number
firms
new
nec-
magnitude
financial
Passenger
1956.
months of 1957
understanding
;and acceptance which will be
■
for October
'
'
Passenger Car Output in Past Week Hit Fastest
stocks.
11,251
Bradstreet, Inc., reported. Although this was up 6.9% above
the 10,526 for the previous month, it was 2.6% below the
11,546
Congress; it would
part of the educational
15.5% below the cor¬
cars, or
'
Lumber
&
execu¬
the
a
and 17,296 trucks.
cars
New. business incorporations rose to
would not
some
118,949
.The. present week's Thanksgiving Day holiday will .reduce
production by almost 20%, "Ward's" declared, even though some
plants/will resume operations on Friday.
•"
118,918
•"*''.
were
.
be current controversy. This
only serve to illuminate
•may
•
week last year was
from
partisan public and
special private interests, and
•shielded..as far as possible from
•'
••'•••
153,917 cars and 23,373 trucks, making
gains of 8% and 3%, respectively, over the preceding week's totals
of 141,902 cars and 22,666 trucks.
Output in the corresponding
survey of the whole financial ter-rain by such a
vorced
and 90,000 trucks.
cars
Encountering the most troublesome production snags, said
v"Ward's/'... are Ford Motor Company, Chrysler Corporation and
_;Studebaker-Packard. General Motors and American Motors were
reported as "right on target."
heavily bur¬
;could be
decrease of
a
responding week in 1955.
Rate
»;by
dapping
1956 week and
of
Continuing, it stated that original programs of 615,000 cars and
95,000 trucks will not be fulfilled, since estimates have been ad¬
.stbeir informal discussions of
tion of American Railroads reports.
November.
the heart of the problem and
must determine our future
dened with the
Loadings of revenue freight for the week ended Nov. 16, 1957,
were 27,975 cars or 4.1% below the
preceding week, the Associa¬
Loadings for the week ended Nov. 16, 1957, totaled 647,298
decrease of 116,600 cars, or 15.3% below the corresponding
Reports" noted that although currently turning out vehicles at the
fastest rate of the year, United States
assembly plants are expected
:which
•agency
Loadings Dipped 4.1% in Latest Week and Dropped
cars, a
•past actions of these officials, for
•political purposes, than in explor¬
ing the difficult questions which
;government* already
31
15.3% Below the 1956 Period
The State of Trade and
'credit
are
4
be
accomplished,
Or accomplished
'only poorly, by
^exposing officials of government
charged with responsibility for fis¬
cal
(2351)
1,409,000,000 kwh.
this time last year it
losses for the week.
stantial flour sales
under
Oats
The
the bearish
at 297.69.
Wheat strengthened early on reports
and
some
of sub¬
business, but declined later
high surplus of grain stocks.
export
influence of
the
narrow limits with trading moderate.
inactive with prices off slightly for the
Corn quotations finished higher, reflecting improved de-
prices
held
within
barley market
week.
sfKf
wer^irregular with most grains showing slight
Grain markets
was
Continued
on
page
32
:2
The Commercial and Financial Chronicle
(2352)
Continued
from
31
page
GEO to Conduct
The State of Trade and
With the assistance of
Industry
from wet weather, limited country offerings and
.strength in the cash markets. Soybeans reversed the recent up¬
trend and declined steadily despite sharply reduced carlot mar¬
ketings and primary receipts.
y.
;
The flour market was quiet and prices worked slightly down¬
ward as buyers remained cautious and continued to display re¬
sistance to bookings beyond necessary commitments for immedi¬
ate and nearby. Many buyers were said to be holding sufficient
balances to carry to the end of the year and beyond.
Domestic and export demand for rice remained excellent.
Offerings
were limited as many growers showed a disposition
hold back shipments in hopes of realizing better prices later.
The rice harvest
was reported about completed in the main belt.
Quality and mill yield of late harvested rice in Texas, Louisiana
and Arkansas was said to be poor due to unfavorable weather.
Activity in the spot coffee market during the week was
largely based oh the unfavorable stock position of the roasters.
In the cocoa market, prices moved steadily forward except for
t\ sharp technical reaction last Thursday.
The market continued
to be influenced bv reports of light crops in Africa.
The spot
Accra grade rose sharply to 44.1 cents a pound, the highest level
Mnce
early in 1955.
Warehouse stocks of cocoa at New York
totaled -1-72.886. bags, down from 194,051 a week ago and 323,239
bags on the corresponding date a year ago.
Cottonseed oil advanced sharply in price during the week,
with trading influenced by unfavorable weather in the cotton and
soybean belts.
On the other hand, lard quotations registered a
sharp decline for the period. Hog prices were steady to strong.
Swine receipts two weeks ago were the second largest since Jan¬
uary, but this was balanced by broad demand from ail interests
end by a sharp rise in prices of some fresh pork cuts.
Slaughter
steer prices held fairly steady as receipts rose
slightly above the
.preceding week.
In
sion to conduct
credit
a
three-year full inquiry into
national
and
Commission
Credit
to
on
conduct
a
price trend
business
as
was
goods market
gray
developed
a
firmer
the result of higher raw cotton costs. Substantial
reported placed for deliveries extending through
the second quarter of next year.
Trade Volume in Latest Week Declined Somewhat
Below Level of Like Period in 1950
j
The announcement
the
was
made at
past week slackened and fell somewhat below that,
There
of
a
year ago.
moderate declines in sales of apparel and
major appli¬
and floor coverings was close
were
ances, while volume in furniture
to that of a week earlier. Spot
new
passenger cars rose
reports indicate that purchases of
again and dealer inventories were slightly
.reduced,
^
on
•
V
The total dollar volume of retail trade in the period ended
Wednesday of last week was from 4% below to unchanged
from
a
according to spot estimates collected by Dun &
Brad street, Inc.
Regional estimates varied from the comparable
2956 levels by the
following percentages: East North Central,
West North Central, West South Central and Mountain
States
—3 to
%1 %; Middle Atlantic, South Atlantic and East South
Central —4 to 0; Pacific Coasl —6 to —2 and New
England States
—7
to
year ago,
—3%.
>
Apparel retailers reported moderate declines from both the
prior week and a year ago in the buying of women's
sportwear,
coats and suits, but interest in fashion
accessories, millinery and
shoes
year
the
for
call
automatic
dishwashers,
and television sets fell
Anniversary meeting of W. Cole, President,. Amherst Col¬
the CED Board of Trustees by its
lege; Morris A. Copeland, Profes¬
Chairman, Donald K. David. He sor of Economics, Cornell Univer¬
said that CED, a non-partisan or¬
sity; August Heckscher, director,
ganization of 150 businessmen and The Twentieth Century Fund; Pen¬
educators, had been given an in¬ dleton Herring, President, Social
itial grant of $500,000 by The Ford Science Research
Council; J. E.
Foundation to finance the com¬ Wallace
Sterling, President, Stan¬
mission.
\
; %
ford University; H. Christian Son¬
Membership on the 9- to 18-man ne, Chairman, National Planning
commission
will
be
determined
Association; • and Herman Wells,
without consideration of politics
President, Indiana University.
to assure objectivity in the body's
Creation
of
the
commission,
findings and recommendations, Mr. which was first suggested by CED
David stated.
%
in a national policy statement pub¬
II will
be the first full-scale lished in December
1948, was en¬
inquiry into
monetary
policies dorsed by the CED board of Trus¬
since the Aid rich Committee of tees at
today's 15th Anniversary
Congress began its 3-ycar study meeting.
They also adopted by¬
in 1908.
laws designed to assure that the
A distinguished group of econor
commission's
research
will
be
mists from the nation's leading
"thoroughly' objective in charac¬
universities and research organi¬ ter" and will be done "from the
slight decline in interest
,
explore ways in which the
functioning of public and private
banking and non-banking credit
institutions can make a
greater
contribution to the country's eco¬
nomic well-being.
organize the commission to
was
slight
a
commission.
Stresses Independence
in
ment
new
no
improve¬
orders.
While
buyers stepped up their purchases of fresh meat and
during the week, interest in poultry, butter and cheese
sagged. Moderate gains were reported in the buying of baked
goods, frozen foods and canned goods.
eggs
Department store sales
Federal
on
a
country-wide basis
as
taken from
Reserve Board's index for the week ended Nov.
1957 declined 5%
16,
from the like period last year. In the
preceding
a decrease of 1% was reported.
For the four
week, Nov. 9, 1957
weeks ended Nov.
16, 1957
a
decline of 2%
period Jan. 1,1957 to Nov. 16, 1957
an
was
reported.
increase of 1%
was
For the
registered
above that of 1956.
Retail
vanced
period
trade
about
a
sales
volume
10% above
year ago,
in
volume
New
of
York
the
David,
the
who
of
not from that of
and
special
any
economic group." The
are
based on those of
political
tremendous
last
week
but
ad-
shorter
trade observers estimated.
According to the Federal Reserve
store sales in New York City for the
decreased
1%
below
that
of
Board's index, department
weekly period ended Nov. 16,
the like period last year.
In
is
preceding week, Nov. 9, 1957 an increase of 1% was reported.
ending Nov. 16, 1957 an increase of 2% was
registered. For the period of Jan. 1, 1957 to Nov. 16, 1957 the index
registered an increase of 2% above that of the corresponding
period of 1956.
economic set
growth
not
labor
statistics.
'
actual and
—-
industry and I
our
the
matter
;•y. ;y
with
't *
-r,'r V
-
Improved Public Relations
There is
one
>
more
aspect of our
business that I would like to com¬
ment
in
upon
closing.
public relations.
by-laws
.
CED's Research and Policy
which
mittee,
has
Com¬
widely
been
commended for its objective anal¬
of economic problems.
yses
David
Mr.
we
stressed
are
So
That
is
dependent
as
opinion
in
necessary
rate increases
other
important authoriza¬
tions
from
public bodies, I am
happy to note that in the field of
public relations—as in the devel¬
opment of appliances—great prog¬
lias
ress
been
made.
;.
r
To illustrate I would like to
count
has
interesting
an
item
re¬
which
to attention in the pages
come
of "Consolidated
Gas
Company of
New York, A History." The author
reprints
York
of
article from the New
an
"Times"
the
in
1884.
The
is
"Gas
Gods."
article
title
I
quote:
"The
to
plan of training small dogs
all
persons
apparently
examining gas meters
originated in this citv some
bite
bent
was
upon
years
by an enterprising dog
ago
fancier.
that
public
upon
getting
and
He
niade
it his
business
the
to breed and train what lie called
commission's major purpose would .'gas dogs.' and was
equally suc¬
provide a broad, factual and
analytical basis to assist Congres¬
sional and other committees and
be to
cessful with rough-haired
terriers,
bull terriers and Spitz do<%
"Excellent results have been at¬
former
a
Harvard
Graduate
,
the commission is not
expected to
ples of trousers collected
by her
dog in the course of "five
years.
It may, however, issue in¬ -years. There are now. employed,
the Government.
Members of the commission will terim reports, and publish research either permanently or for three
each month, fullv five
be
selected
from
the
ranks
of studies by economic experts and days in
thousand gas dogs above the re¬
business, labor, agriculture, edu¬ staff research memoranda.
The commission, independently gion of Bleecker Street, and we
cation, and from the fields of re¬
search
and administration by a of CED. will appoint its own re¬ shall be safe in assuming that at
will
do its work independently of
CED,
Ford
The
Foundation,
special Selection Committee
or
com¬
issue
final
its
report
for
three
search director and research staff.
gas
least four
the
Continued
from
10
page
thousand
hundred
five
inspectors are bitten either in
legs or the trousers every
gas
month.
"It need hardly be said
dogs
The Future of Natural Gas
mately
trillion
238
cubic
feet,
enough to supply the use in
for
22
1956
This fact, combined
years.
with the continued discoveries of
large new reserves, assures
going to be in business for
long time.
we are
a
long,
the sales front the picture
equally bright. Natural gas is
truly a premium fuel, particularly
for space heating and for many
industrial uses. In most areas, and
particularly in the Midwest, the
On
is
industry
the best
price. This is
the primary reason why there is
a
continually mounting demand
gas
fuel
for
at
the
is
and
more
selling
lowest
more
gas
for home
heating.
In
industry and commerce, gas
is used extensively for heat proc¬
to
manufacture
wide
a
variety of products and for pre¬
paring food for wholesale and re¬
tail
consumption.
Gas
also
is
widely used for heating factories
and
commercial
installations.
Indeed,
the
expansion
industrial
and
commercial
gas
in
the
past 10
business
years
growth.
new
day when the gas inspector is ex¬
industrial
these gas sales have
inspector when the gas dog's
the
of
source
send-out.
inspector's language
of
gas
lor
air
condi¬
tioning large buildings offers tre¬
mendous possibilities.
Wherever
costs
steam
reasonable
are
that
testified
—
as
they are for gas-generated steam
in many areas — absorption air
equipment is eco¬
nomical to install and operate. This
that
of
system
any
commercial
can
used
be
and
in
industrial
summer
gas
sales.
can
pay
now
with
the
legs
faithful
trousers
and
dogs have sam¬
It must be a source of
satisfaction
consider¬
that
know
to
customer relations have come such
a
long way since 1884.
But
look
as we
look back, let
forward,
I
also
us
personally
see
a
most attractive vista.
building to provide summer cool¬
ing where
steam
is
used
for
heating. Many air condi¬
tioning installations of this type
have
already been installed in
southern cities. In some of these,
of
the
able
Two With Baron,
winter
the
they
bills
.gas
pled."
conditioning
type
leading citi¬
our
including
clergymen
and
professional philanthropists, who
own
or
emplov gas dogs, have
lections
sale
of
"Hundreds
zens,
comparative
equanimity, cheered by the recol¬
Gas Air Conditioning
The
fresh
as a
hole is made in his trousers.
their
Black
(Special to The Financial Chronicle)
BEVERLY HILLS,
S.
Stanley
sales nearly equal hgve
of
In the
the
teeth go in his calf, or to listen to
sales has recently ap¬
peared.
The air conditioning of
buildings by gas is gaining recog¬
nition as a very promising way
of filling in the summer valley in
gas
a
pected merely to enjoy the yell of
expanded
winter
use
has exceeded the rate of th<»
nation's
interesting
are
point
to remain at home all day on the
activity has increased 50%.
An
There
householders who make it
while
250%
increased
that gas
wonderfully soothing to
are
the householder's mind.
And Direct Industrial Sales
The
For the four weeks
present
potential—of
will
or
and
essing
City
comparable
of
agencies which have the primary tained by the use of gas do^s. All
responsibility for monetary policy amiable Christian lady residing on
legislation.
;
Thirty-fifth Street,; in this city,
School of Business Administration,
Aimed at no specific legislation, has no less than forty-three sam¬
emphasized that the commission
Mr.
Dean
in
Dyeing and finishing plants in New England reported
2 957
"
.
standpoint ol: the general welfare
gain in food
transactions in cotton gray goods
lagged. Bookings in woolens,
worsteds and carpet wool fell below those of
the preceding week.
the
assure
its independence and perform ad¬
ministrative
functions
for
the
refrigerators
draperies and linens occurred.
buying last week as shop¬
pers anticipated the forthcoming
Thanksgiving holiday. Interest
centered primarily on canned
goods, frozen foods and some dairy
products. Sales of fresh produce, fresh meat and
poultry were
sustained at a high level.
|
I
Activity in the major textile markets was sluggish again
last week.
Except for some scattered orders for print cloths,
There
fortn
burning facil¬
.
moderately, the buying of lamps, lighting
fixtures and housewares improved. Volume in
upholstered furni¬
ture, bedding and case goods was unchanged from a week earlier.
A
tion; Everett Needham Case, Presi¬
dent, Colgate University; Charles
ago.
Although
our
many; in¬
the
and
steady.
Warm weather discouraged purchases of men!s
topcoats and suits, while the call for furnishings rose fraction¬
ally.
Over-all volume in men's apparel was
slightly below a
was
In
these: take
heads of educational, up there is every reason to
expect
philanthropic or¬ that the gap between the low cost
prising
research
15th
Mr. David said that CED would
Following, two weeks of Increasing volume, retail trade the
customer.
stances,
L.P. gas storage and
ities.
familiar with the
governmental commission.
to
cotton
and
broad three-year inquiry into the ganizations.
j
of gas and the higher cost of other
public and private monetary and
Mr. David announced member¬ fuels will continue to widen. And
credit
policies
of
the
United ship of the Selection Committee the demand for
gas will continue
States, was announced Nov. 21 by as follows: Arthur F. Burns, Presi¬ to
grow. The American Gas Asso¬
the Committee for Economic De¬
dent, National Bureau of Economic ciation confidently forecasts great
velopment
(CED). It was em¬ Research; Robert D. Calkins, increases in all
aspects of our
phasized that this will be a non¬ President, The Brookings Institu¬ service. You are
white
The
the
by
monetary and
Under
A
Money
is the availability
or course,
efficient
reliable standby
facilities installed and maintained
commis¬
pendent of CED, Ford Foundation and the Government.
zations will assist the commission
cotton.
our
pipe line, the local gas distributor
and the consumer alike. A factor
here,
of
policies. Commission said to be, when appointed, inde--
fairly active trading, cotton prices continued to move up¬
new highs for the season. The rise was attributed
mainly to reports of further unfavorable weather over large^por¬
tions of the belt, indicating further deterioration in
quality and
yield and growing concern over availability of desired grades of
ward to establish
Foundation $500,000
initial Ford
an
grant, CED creates committee to select 9 to 18 man
xnand resulting
to
Independent Monetary Inquiry
Thursday, November 28,1957
...
and
Calif.—Ruth
L.
Uttal
associated
with
Jordan
become
Baron, Black, Kolb and Lawrence
I
advert
portance
dustrial
of
gas
elsewhere
the
to
the
interruptible
im¬
in¬
sale, where propcrly
used, in providing benefits to the
Incorporated,
Drive.
Mr.
253
Uttal
North
was
Canon
previously
with Daniel Reeves & Co.
Volume 186
Number 5694
.
.
The Commercial and Financial Chronicle
.
'
-
-
-
•
,
.
.
^
.
j
The
Indications of Current
'
■
''
•.
1
•
'
' fc
following statistical tabulations
latest week
■
S3
(2353)
■
or
month available.
production and other figures for thti
cover
Dates shown in first column
either for the
are
"ii i
Business Activity:
week
'
-lie"
!
.
AMERICAN IRON AND STEEL INSTITUTE:
'
-
month ended
Previous
Month
Week
Aico
Week
"
indicated
steel
KmiUralAtit
operations
capacity)-
of
(percent
-Dec.
1
§73.6
•;
on
6? )
Latest'*
'
or
*76.0
that date,
101.1
BUSINESS
Ingots
and castings
*,tj^AMERICAN PETROLEUM
Crude
«
oil
(net tons)
to stills—daily
runs
ir
,.,,
i
Finished
F "
at
CIVIL
ENGINEERING
2,026,000
7,151,000
182,178.000
180,805,000
;
»
12,163,000
7,513,000
7,891,000
179,263,000
31,870,000
8,218,000
Commercial
12,101,000
1,934,000
12,074.000
Construction
172,739,000
,
U.
33,503,000
34,177.000
35,012,000
171,511,000
173,963,000
173,785,000
and
59,338,000
58,823,000
Bituminous
coal
and
.'•ii
,
J
647,298
675,273
726,812
763,898
586,246
>
I.
570,575
600,672 1
650,204
ELECTRIC
Electric
output
FAILURES
$332,274,000
$372,988,000
$359,558,000
Total
165.063,000
152,699,000
213,612,000
167,211,000
220,289,000
145,946,000
143,624,000
166,675,000
129,548,000
90,228,000
Nov. 21
23,587,000
53,614,000
16,398,000
17,521,000
Nov. 16
9,120,000
9,400,000
9.B30.000
Nov. 16
446,000
458,000
504,000
Finished
100
647,000
143
„
'
'
Nov. 23
_
INDUSTRIAL)
DUN
—
129
*135
151
INC.
11,953,000
12,136,000
11,787,000
Nov. 19
Nov. 19
«" ">•
■*
Zinc
5.967c
5.967c
.
$32.67
<,,5.9670.
„
>
$66.42
$63.04
$33.00
$35.33
$61.33
Straits
26.475c
22.900c
23.975c
*
U.
22.700c
S.
(New
13.500c
13.500c
13.500c
13.300c
13.300c
13.300c
15.800c
10.500c
10.500C
10.500c
10.000c
10.000c
10.000c
26.000c
26.000c
26.000c
25.000c
Nov. 20
89.125c
90.125c
91.750c
111.125c
at——-Jkc
Nov. 26
90.36
89.61
86.36
Nov. 26
ov. 26
Nov. 26
J°v- 26
Group
Utilities Group
Group
1
-
Industrials
-
88.95
89.23
94.26
100.65
91.91
99.20
88.95
89.23
97.16
81.29
82.15
91.91
89.23
86.65
87.72
89.37
89.09
88.95
98.09
91.62
91.19
90.91
98.25
BOND
YIELD
DAILY AVERAGES:
S
Government Bonds.
Nov. 26
3.29
3.39
3.71
4.47
4.49
4.47
4.02
4.08
4.30
4.28
""""Nov!
"""
Industrials
MOODY'S
Orders
—
COMMODITY
NATIONAL
Unfilled
orders
(tons)
at
5.01
4.28
4.66
4.58
4.07
4.46
4.48
4.49
3.87
4.30
4.33
4.35
AVERAGE
ROUND-LOT
FEDERAL
=
end of
FOR
ACCOUNT
4.49
2.15
*1.90
1.83
144
145
*145
151
-J
Oct.:
of
*
QUOTATIONS)—
refinery (per pound)
26.435c
38.623c
22.931c
35.431c
£193.935
£281.946
£86.505
ton)—
23.926c
£85.905
£197.256
£281.326
10.500c
14.000c
£73.086
£95.726
£69.215
£73.372
£93.595
and Sterling Exchange—
Silver, New York < per ounce).—
Silver, London (per ounce)
Sterling Exchange (check)
Tin,
£90.455
£113.712
10.000c
13.500c
90.625c
290,265
287,763
308,059
278,966
§ Cadmium
94
94
98
94
433,323
485,369
467,232
428,989
79.935c.
$2.78457
93.385c
105.764c
$35,000
$35,000
$35.00C
$244,750
$254,761
36.590c
36.590c
36.470c
33.000c
33.000c
33.000c
33.500c
33.500c
33.500c
—
—
$84,000
$84,000
$1('4.000
$1.70000
$1.70000
$1.7000C
$1.70000
$1.70000
$1.7000C
$1.70000
$1.70000
$1.7000c.
$2.00000
$2.00000
$2.6000C
28.100C
28.100c
27.100c
—
26.000c
26.000c
25.000c
4
35.250c
35.250c
35.250c
74.000c
74.000c
64.500c
$2.25
$2.25
$2.25
£50,280,000
£12,061,000
£51,033,000
pound)—
(per pound)-.
Cobalt, 97% grade
...
-
—
Aluminum,
99%
(per
age
grade
ingot
weighted
aver¬
pound)-
Aluminum,
99%
grade primary pig
Magnesium ingot (per pound)
**
91.176c
78.720d
$2.78274
$231,615
Antimony (per pound), bulk Laredo-.
Antimony (per pound), boxed Laredo
Platinum, refined (per ounce ).^.7_
109.60
90.602c
78.739d
$2.79982
91.875c
tCadmium, refined (per
•1'Cadmium (per pound)
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
15.800c.
£115.457
10.000c
New York Straits
432.2
109.66
16.000^
13.800c
£89.836
£86.505
;
Gold (per ounce, U. S. price)—
Quicksilver (per flask of 76 pounds)
tfAnlhnony, New York boxed-—
231,330
109.60
14.000c
13.492c
£85.905
Silver
387.6
109.76
26.335c
10 500c
254,914
MEM¬
OF
*2.22
-
M. J.
387.9
Nov. 22
TRANSACTIONS
2.22
c
-
RESERVE
100—Month
——
(E. &
Nov. 16
period
$2.0$
-
:
—
281,322
100
=
THE
.^Nov. 16
—Nov. 16
—
39.7
$2.08
39.5
£09.179
3.86
4.49
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
15)49
OF
388.1
*
—
*"
;
,
...
.Nov. 16
;
activity
41.4
*
>
—
240,710
—
(tons)
of
5.08
4.66
26
ASSOCIATION:
(tons)
Production
Percentage
40.3
*39.6
142
/
1
Nov. 26
INDEX
PAPERBOARD
received
4017
39.8
147
-V'
.
13 692c
3.93
5.09
Nov. 26
Nov. 26
Nov. 26
Railroad Group
Public
Utilities
4.47
Jov. 26
Baa
Group
Group
72.65
40.0
1.90
v
'
Common, New York (per pound)
Common, East St, Louis (per pound)
London (per long ton)____
fiThree months, London (per long ton)
;
Zinc (per pound)—East St. Louis.1
!
§§'/.inc, Prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)
3.80
Nov. 26
■■
89.01
*75.21
$2.08
;V. 1
fvPrompt,
3.71
Aaa
A8
$82.21
"'89.47
*74.29
Lead—
3.93
4.12
———
corporate
$83.20
88.36
39.1
"
Export refinery (per pound)
1"!LONDON, prompt: (per long ton)
ttThree months, London (per long
3.37
.Nov. 26
4.28
U.
Average
$82.16
'
ttZinc, Loudon, three months (per long ton)
86.65
95.01
•
MOODY'S
p' ■
October:
97.16
94.86
91.62
81.17
Public
■■
——
—
adjusted
Domestic
89.36
88.95
corporate
Railroad
"
OF
Copper-
DAILY AVERAGES:
95.77
.
DEPT.
__
,
Unadjusted
13.500c
Jo v. 20
Government Bonds
Average
S.
manufacturing
METAL PRICES
14.000c
Nov. 20
Nov. 20
91.91
i
13,309,827
:
16.000c
Nov. 20
at
York)
1:
Nov.
-
:
C"'"
'
Seasonally
34.250c
Nov. 20
BOND PRICES
of
—
goods
SYSTEM—'1917-41)
35.700c
(primary pig. 99%) at
tin
MOODY'S
9,718,448
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
t
<
26.475C
—
Louis)
5,594,454
OF
Durable goods
Nondurable goods
5,622c
S66.42
$66.42
26.600c
at
(East St.
Aluminum
3,629,000
$50,004,000
1,788,000
DEPT.
S.
manufacturing
All
..Nov. 20
at
(delivered)
tZinc
4,554,000
$45,420,000
goods
Hourly earnings-
207
Nov. 20
Louis)
3,195,000
goods '
ERNORS
copper—
(New York) at
(St.
5,517.000
HOURS—WEEKLY
AND
Durable goods
11,439,000
281
306
308
Nov. 19
—
Export refinery at
Lead
11,145,000
Nondurable
NOV. 21
Domestic refinery at—.
Lead
U.
—
ESTIMATE —U.
Hours—
&
steel
Electrolytic
12,368,000
5,618,000
"
j METAL PRICES (E. & M. J. QUOTATIONS):
•
13,657,000
1,158
$17,345,00C
$47,428,000
PRODUCTION
Durable
All
(per lb.)
(per gross ton)—
Scrap steel (per gross ton)
liabilities—
liabilities
Nondurable
Nov. 16
Pig iron
7,690,000
7,994,000
™
1,071
$13,901,000
7,691,000
16.947,000
Weekly earnings—
All manufacturing
10,327,000
r.
IRON AGE COMPOSITE PRICES:
;•
182
94
LABOR—Month of October:
(in GOO kwh.)
BRADSTREET,
service
AVERAGE
INSTITUTE:
AND
'
.
1,122
FACTORY EARNINGS
SALES INDEX—FEDERAL RESERVE
(COMMERCIAL
.
107,749,000
lignite (tons)
(tons)
=
584
$11,601,000
,'21
L+
AGRICULTURE—1957 crop as
Production 500-lb. gross balesi
249,851,000
Nov. 21
Nov. 21
AVERAGE
89
COTTON GINNING (DEPT. OF COMMERCE)—
To Nov. 1
(running bales)
$357,600,000
Nov. 21
anthracite
SYSTEM—1947-45)
,112
164
176
—
—1
—^
liabilities
liabilities
liabilities
Commercial
(U. S. BUREAU OF MINES):
Pennsylvania
EDISON
Nov. 21
-
.
DEPARTMENT STORE
.aa--i
____
number
number
COTTON
"
198
96
ENGINEERING
—
-
COAL OUTPUT
r>
number
service
Construction liabilities
46,768,000
municipal
Federal
182
535
99
—
t
.
construction
State
•
Ago
160,460,000
59,867,000
construction
Public
,
Wholesale
35,978,000
.ov. 15
at
construction—
S.
Private
-
_
544
Manufacturers'
Retail
NEWS-RECORD:
Total
Total
2,619,000
Nov. 15
at
CONSTRUCTION
Year
,
26,483,000
Nov. 15
freight loaded (number of cars)
Nov. 16
freight received from connections (no. of cars)—-Nov. 16
Revenue
214
—
number
number
7,965,000
7,861,000
27,736,000"'
1,794,000 U
r-
Nov. 15
ASSOCIATION OF AMERICAN RAILROADS:
Month
October:'
of
Manufacturing number,
7.164,750
6,746,750
7,540,000
26,224,000
Nov. 15
gasoline .(bbls.)
Residual fuel oil (bbls.)
Revenue
6,796,220
J
1:6,853,000
Nov. 15
(bbls.) at
Distillate fuel oil (bbls.)
.
6,831,020,.
ti7,797,000
Nov. 15
—Nov. 15
output
unfinished
and
Kerosene
'2,489,000
Retail
Nov. 15
(bbls.)
(bbls.)
output
oil
2,041,000
;
:
Nov. 15
,
;
Stocks at refineries, bulk terminals, in transit, in pipe lines—
}
•'"V
>'
fuel
-
Previous
BRADSTREET,
'
(bbls.)
average
(bbls.)
fuel oil
Residual
li j
of
Kerosene output (bbls.)
"Distillate
■
'W®
*1,945,000
Wholesale
(bbls.
—~
__
<C;UiU 'Crude
-CcJ.dasoline output
§1,884,000
INSTITUTE:
and
condensate, output—daily average
42 gallons each) —i.7.
*
FAILURES—DUN &
INC.—Month
1
of that date:;
are as
Month
Asm
79.7
to—
Dec.
of quotations,
cases
Latest
'Equivalent to—
Steel
in
or,
Yeai
Nickel
Bismuth.(per pound)—
—
Transactions
of specialists in stocks in which registered—
purchases
Nov.
Short sales
Nov.
1,340,820
2,821,550
1,079,850
1,601,160
358,650
739,680
250,190
297,610
..Nov.
Total
984,480
2.410,820
860,450
1,414,970
Nov.
1,343,130
3,150,500
1,110,640
1,712,580
.
—,—-—
——
Other
Total
sales
—
sales
—
Other transactions initiated
Total
202,890
517,580
269,070
55,600
125,100
42,400
transactions
Total
off
the
201,500
477,350
202,490
399,360
602,450
244,890
444,860
Other
—Nov.
—
~—
Total
165,630
59,750
744,345
367,950
2,413,195
518,115
909,975
,—-——Nov.
2,081,082
4,243,160
Nov.
Nov.
541,570
1,030,410
1,628,230
352,340
1,576,775
3,632,515
1,430,890
2,118,345
4,662,925
1,783,230
.
Nov.
T
LOT
DEALERS
EXCHANGE
Odd-lot
sales
Number
Odd-lot
AND
SPECIALISTS
SECURITIES
—
by dealers
(customers'
N.
Y.
Tubes
Customers'
short
sales
Customers'
other
1,333,750
$110,734,130
$70,848,894
Nov.
sales
-Nov.
-—
851,266
1,545,299
771,129
sales
Nov.
27,829
10,159
46,347
5,575
823,437
1,598,952
760,970
$34,748,451
of
Round-lot
shares—Total
sales
Nov.
EXCHANGE
FOR
Total
AND
ACCOUNT
round-lot
Nov.
SALES
ROUND-LOT
OF
MEMBERS
ON
THE
STOCK
N.
Y.
LABOR
Commodity
All
NEW
SERIES
—
U.
S.
DEPT.
Jan.
880,800
1,566,810
535,110
531,320
9,667,900
20,634,830
8,002,150
10,505,330
22,201,640
8,537,260
11,036,650
117.8
117.8
117.7
115.7
87.6
103.1
Nov. 19
and
*91.8
105.7
*106.3
105.6
Nov. 19
farm
92.2
91.7
Nov. 19
foods
90.5
93.2
89.8
125.6
125.6
125.6
figure. ^Includes 1,012.000 barrels of foreign crude runs. ?Based en new annual capacity
1957, as against Jan. 1, 1956 basis of 128,363,090 tons.
tNumber of orders not reported
Investment Plan.
IPrime Western Zinc sold on delivered basis at centers where freight irom
cent,
a
purchases
$10,330,300
$26,400,000
$8,437,356
$275,000,000
$278,000,00C
274,067,350
274,411,983
275,282,774
114,563
89,397
$274,170,055
$274,526,547
$275,372,172
440,429
441,812
457,604
$273,729,625
$274,084,734
$274,914,563
915,265
3,085,432
SECURITIES
September:
of
S. GOVT.
of
Total
—
—
STATUTORY DEBT LIMITATION
Oct. 31 (000's omitted):
face
amount
that may
be
outstanding
public
gross
debt
obligations
not
Treasury
owned
by
the
j.
102,705
Total gross public debt and
t
guaranteed
obligations
»
Grand
total
outstanding
79.2
124 P
Nov. 19
foods
1,
one-half
pound.
U.
37,433,000
TRANSACTIONS IN DI¬
GUARANTEED
A.—Month
outstanding public debt obli¬
gations not subject to debt limitation
Nov. 19
ftian
27,705,000
Deduct—other
OF
Group—
other
25,115,000
3,134,192
sales
Total
(1947-49=100):
commodities
Monthly
640,970
10,548,700
'Revised
of
545,380
1,298,350
Nov.
Meats
All
6,056,035
44,456,000
41,055,000
35,948,000
40,430,000
27,190,000
...
at
any
time
Outstanding—
Nov.
products
Processed
591,780
—.Nov.
PRICES,
S.
U.
Guaranteed
commodities
Farm
216*350
(SHARES)-
.
2,777,056
2,773,470
5,965,804
$275,000,000
MARKET
AND
OF
Net
216,350
153*070
sales—
sales
—
153,070
293*590
STOCK
Total sales
WHOLESALE
298,590
TRANSACTIONS
Short sales
Other
180,480
deafers—
STOCK
3,682,817
39,009,000
(pounds)
RECT
•
•—as
shares
of
ROUND-LOT
3,483,330
3,364,617
6,173,745
(Camelback)—
Net
.Nov.
purchases by
Number
TOTAL
TREASURY
$45,119,535
by dealers—
Short sales
689,816
Truck alid Bus Inner
(pounds)
(pounds)
Production
899,422
$71,874,869
180,480
Number
212,345
197,425
904,997
$36,366,778
Round-lot
246,099
;
Shipments
Inventory
sales
244,209
1,152,966
(Number of)—
Rubber
Tread
1,169,203
$51,682,100
3,179,927
640,904
Inventory
2,657,011
1,194,076
251,135
Production
1,264,337
$52,566,539
1,205,980
1,116,750
3,128,949
:
Shipments
purchases)—t
total
-
630,056
I
Inventory
1
Passenger, Motorcycle,
(customers' sale6)—
orders—Customers'
of
1,158,586
1,105.175
3,032,514
—
Shipment?
STOCK
..Nov.
purchases by dealers
6,647,096
14,468,132
269,769
———
Production
COMMISSION:
shares—
of
Number
ON
EXCHANGE
5,758.068
7,800,709
15,348,234
Bus Tires. (Number of)—
-
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-
8,626,747
7,535,425
16,310,462
—
Inventory a
Tractor-Implement Tires (Number of)—
2,815,899
sales
sales
6,564,375
;
——:
Production
430,590
2,385,309
account of members—
(Number of)—
Shipments
570,979
purchases
Total
Truck and
658,459
427,700
Short sales
Other
October—
Production
87,480
127,320
—Nov.
transactions for
round-lot
BANK LTD.—Month of
IN
Shipments
458,885
390,795
—
sales
Total
345,490
904,030
Nov.
sales
BRITAIN
Inventory
—,——Nov.
—
.
471,192
GREAT
Passenger Tires
floor—
purchases
Short sales
Total
initiated
ISSUES
MANUFACTURERS ASSOCIATION,
INC.—Month of September:
45,500
Nov.
257,100
Other
MIDLAND
353,150
—Nov.
_
sales
CAPITAL
RUBBER
the floor—
on
purchases
Other
NEW
Balance
face
under
producers'
of 133,495,150 tons as
since introduction or
East St. Louis exceeds
amount
above
and
iiDomestic
five
from East
St.
.ily
Exchange.
of
obligations,
issuable
authority
♦Revised figure,
tBased
platers'
tens or
Louis
mean
1,270,374
on
the producers' quotation.
quotations.
more
exceeds
and
bid
SAverage of quotation
but less
0.5c.
and
tBased
than c\rl>a
**F.o.b.
ask
Fort
quotation
lo
0
on
'X*d.
Colburne, U.
at
morning
the average of the
special shares to plater.
§tDeiivered where freight
S.
on
duty included.
session
of
t+A^er-
London
Metai
jt*
^
34
The Commercial and Financial Chronicle...
(2354)
Thursday, November 28,1957
n-
★ INDICATES
Securities
Now
in
Registration
SINCE
(Walter H.)
Co.,
Inc.
■■■• /•
(letter of notification) $150,000 of 10-year 6%
debentures, due Nov. 1, 1967, to be offered to
stockholders. Price—At par (in units of $1,000). Proceeds
—For construction of a new addition to present building.
Office—6210 Denton Drive, Dallas, Texas. Underwriter
—None.
Allstate Commercial Corp., New York
Sept. 16 filed 256,300 shares of class A common stock
(par one cent), of which 233,000 shares are to be sold
for account of the company and 23,300 shares for the
account of Ben Degaetano, President of the underwriter.
Price—$1.50 per share. Proceeds—For working capital
to be used in realty financing activities.
Underwriter—
Midland Securities, Inc., New York.
provide
Canada
Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates. Price
At par (in units of $250, $500 and
$1,000). Proceeds — For purchase of mortgage bonds.
Underwriter—None.
—
Ltd., Calgary, Canada
4,851,810 shares of common stock, (par
16% cents) to be offered in exchange for capital stock,
of Canadian Export Gas Ltd. on the basis of 2% Cana¬
dian Prospect shares for each Canadian Export share,
subject to acceptance by holders of at least 80% of
Canadian Export shares outstanding. Underwriter—None.
27
filed
effective Nov. 4.
Price—$5.75 per share. Proceeds—To
retire a bank loan of $220,000 and for general corporate'
purposes.
Office—North Greenbush, N. Y. Underwriter
Savage Arms share.
—Harold C. Shore & Co., New York.
The other is conditioned upon ac¬
ceptance by holders of not less than 100,000 shares of
Savage Arms stock not later than Dec. 17, 1957. Under¬
Sept.
writer—None.
cents.
Price
loans
and
Israeli
Paper Mills, Ltd. (12/9-13)
Oct. 29 filed 6,000,000 series B ordinary shares (par one
Israel pound per share). Price — $1 per share, payable
either in cash or in State of Israel bonds.
expansion
Office
Proceeds—For
Hadera, Israel.
Under¬
writer—Lee Higginson Corp., New York, on a best ef¬
forts
program.
—
basis.
•
27
filed
cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex.
Underwriter—Peoples Securities Co., J. D. Grey,
of New Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
Ampal-American Israel Corp., New York
Oct. 14 filed
$5,000,000 of five-year 6% sinking fund de¬
bentures, series F, due 1962. Price—At 100% of principal
amount. Proceeds—To purchase machinery and equip¬
ment.
Underwriter—None.
Anita Cobre U. S. A., Inc., Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stocK. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.
•
Artesian Water Co. (12/3)
Oct. 15 (letter of notification)
3,404 shares of class A
ers
of record Dec.
of class A
on
the basis of
one
new
share
stock fcr each eight shares of com¬
class A common stock; rights to expire
common
stock and
mon
2, 1957
Jan. 2,
1958. Price—$30 per share to stockholders; and
$32 to public. Proceeds—To purchase assets of Collins
Park
Water
Co.; Willow Run Water Co. and Sedgely
Plant; also to purchase additional storage
tanks, water mains, etc. Office —501 Newport & Gas
Pike, Newport, Del.
Underwriter — Laird, Bissell &
Meeds, Wilmington, Del.
Farms Water
Blacksmith
Shop Pastries Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6V2% deben¬
tures dated Sept. 16, 1957 and due
Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered
in units of one
$50 debenture and 20 shares of capital
stock.
Price—$90 per unit. Proceeds—To retire mort¬
gage notes and for
&
working capital. Underwriter—Mann
Gould, Salem, Mass.
• Brantly Helicopter Corp.,
Philadelphia, Pa.
(letter of notification) 21,818 shares of common
stock (par 50
cents). Price—$13.75 per share. Proceeds
Nov. 25
—For
—24
equipment, supplies and working capital. Offices
Maplewood Ave., Philadelphia 44,
Pa., and Fred¬
erick, Okla.
•
Underwriter—None.
Brockton Edison Co.
ceeds
To repay bank loans and to
acquire securities of
Montaup Electric Co. Underwriter—Kuhn, Loeb &
Co.,
New York.
•
Brockton Edison Co.
(12/10)
Sept.
18 filed $3,000,000 first
mortgage and collateral
trust bonds due 1987.
Proceeds—To repay bank loans and
to acquire securities of
Montaup Electric Co. Underwriter
—To be determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.
and Shields & Co.
(jointly); Stone & Webster Securities
Corp.; Blair & Co. Incorporated. Bids
—
•be received up to noon
(EST)
on
Expected to
Dec. 10 at 49 Federal
St., Boston, Mass.
• Brooklyn Union Gas Co.
(letter of notification)
Nov. 22
(par
10
bank
in the
repay
.
or
working
general
assume
more
than 25% of the risk; and
capital.
Office—Kilgore,;. Texas.
*
Underwriter—None. Statement
effective Nov. 6.
offered in units of $100 of bonds and 10 shares of stock.
mortgages
struction
unit. Proceeds—For purchase of first
to make first mortgage loans and for con¬
or
per
business.
writer—Aetna
Date
Office—Miami
Beach, Fla. Under¬
Corp., New York. Offering—
Securities
indefinite.
/
,
Chesapeake & Potomac Tel. Co. of Md. (12/9)
Nov. 15 filed $30,000,000 of 36-year debentures due Dec.
1993.
Proceeds—To repay advances from American
Telephone & Telegraph Co., the parent, and for additions
and improvements to telephone plant.
Underwriter—
To be determined by competitive
ders: Halsey, Stuart & Co.'
bidding. Probable bid¬
Inc.; White, Weld & Co.;
Stanley & Co.; Kuhn, Loeb & Co.; Hie First
Boston Corp.; Harriman Ripley & Co. Inc. Bids—To be
received up to 11:30 a.m. (EST) on Dec. 9 at Room
2315,
195 Broadway, New
York, N. Y.
Morgan
Chess Uranium Corp.
May 14 (letter 6f notification) 600,000 shares of common
stock
(par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave.,
R. Veditz Co.,
Montreal, Canada. Underwriter—
Inc., 160 Broadway,; New York.
Offering—Expected at
any
time.
?4
qo7
charo<;
funds.
Office
Kansas
—
City, Mo.
Statement effective Nov.
Continental
t
v
Underwriter
19.
Insurance
./■
Nonei
-Jul
*
.
Co.
1,700,000 shares of capital stock (par $5) be-*;
ing offered in exchange for capital stock (par $7.50) of
Firemen's Insurance Co., Newark, N. J., at the rate of 17 V
shares of Continental for every 20 shares of Firemen's ?
stock. The offer, which is subject to acceptance xof not1
less than 80% of the Firemen's stock, will expire
Dqp/S^
1957, but may be extended to Dec. 31, 1957. Underwriter
—None;' Statement effective Oct. 31.-.
>
/
./
\ / I;
of
Cooperative Grange League Federation, Inc.
Sept. 27 filed $600,000 of 4% subordinated-debentures
.
4,-1966; 10,000 shares of 4% .cumulative pre¬
ferred stock par $100;, and 150,000 shares .pf; common
stock (par $5). Priee—At principal amount or par value.
Proceeds—To finance inventory purchases, to make cap-!
ital loan advances to retail subsidiaries; to reduce bank
loans; and for working capital. Office — Ithaca, N. Y.'
Explorers, Ltd.
,
{? |
(letter of notification) 600,000 shares of common
$1-Canadian). Price—50 cents per share-U. S.
funds, r Proceeds
For exploration and drilling costs.,;
Office — Suite 607, 320 Bay St., Toronto, Ont, Canada."
Underwriter—Stratford Securities Co., Inc., 135 Broad-;
way, New York.
■
■
/
—
Nov.
35
Mines
stock.
Price
mining
Corp..
(letter of notification)
—
50,000 shares of capital
($1 per share). Proceeds — ForOffice—67 West 2nd St., Yuma, Ariz.'
At par
expenses.
stock Cnar $20)
exchange for common stock of Title Inof fc»t. .L.OUIS at the rate of five-eighths of
share of Chicago Title stock for each Title Insurance
:
Underwriter—None.
Daybreak Uranium, Inc., Opportunity, Wash.—< T"
May 7 filed 631,925 shares of common stock (par 1(P
cents).; Price — At market (approximately 53 cents pershare). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.
•
DeLuxe Check Printers, Inc.
>•
Aug. 28 (letter of notification) 25,000 shares of common;
stock (par $1) to be offered to employees and present
stockholders. Price—$11.80 per share.. Proceeds—To ac¬
quire new machinery and equipment. Office — 530 N.
Wheeler
Sti, St. Paul 4, Minn.
Dillon
Nov.
(J. S.)
Underwriter—None.
:
& Sons Stores Co., Inc. 412/3)
12 filed
110,000 shares of common stock <par S5),
100,000 shares'are to be offered publicly and
10,000 shares to employees, officers and . directors of
company.
Price—To be supplied-by amendment. Pro¬
of which
ceeds—To
bank
reduce
loans,
to equip new stores, to
general corporate pur¬
Underwriter—Kidder, Peabody & Co., New York.
increase
poses.
inventories
and
for
Disc, Inc., Washington, D. C.
Oct. 10 filed 400,000 shares of class A common stock (par
Price—$2.50
and
share.
per
Business—Purchase
rommon
4
,
Oct. 28
stock (par
and
Proceeds—For investment.
of real- property,
development
acquisition of stock of business enterprises. Under¬
Irving Lichtman is President and Board
to be offered in
writer—None.
suxanct
Chairman.
one
ourp.
share. The exchange offer is subject to
acceptance by
30,600 shares (80%) of the 38,250 Title Insurance shares
outstanding. Initial expiration date of the offer is Dec.
20.
Underwriter—None.
Cleary (W. B.), Inc.
3 (letter of notification)
Oct.
(par $5)
five
26,
1957
shares
accounts
on
held.
the basis
First
and
5,600
to
of
Price—$20
payable;
Office—272
Okla.
to be offered
National
one
per
drilling
shares
of
stockholders
new
share.
for
oil
common
of
share
record
for
each
Proceeds—For
and
gas
wells.
Building, Oklahoma City 2,
Underwriter—None.
<
'
Doctors' Motels, Inc., Kansas City, Kan.
Oct. 25 filed 500,000 shares of common stock,
426,497 shares
are
are
to be offered in
be offered
to
of which
publicly, 39,568 shares
exchange for $432,055 outstanding 6%
debentures, 3,085 shares are to be issued as a stock divi¬
dend and 30,850 shares are presently outstanding. Price
—At par .-($15 per share).
Proceeds—For construction
and operation of motels and to repay bank loans.
Un¬
derwriter—None.
★ Dogs of the World, Inc.
(letter of notification)
Nov. 22
common
stock and
Price—Both at par
Colonial Aircraft Corp.,
1,000
shares of class A
4,000 shares of class B
($50
common
stock.
share). Proceeds—For dis¬
Office—c/o Arthur P. Donahue,
per
Sanford, Me.
July 5 filed 248,132 shares of common stock (par 100).
Price—At market.
Proceeds—To selling stockholders.
Underwriter—Glick & Co., Inc., New York. Statement
effective Aug. 10.
play and sale of dogs.
Columbus Electronics Corp.
Nov. 13 (letter of notification) 110,000 shares of
ordinated convertible debentures due June 1, 1980, orig¬
stock
(par 10 cents).
Price—$2.50
per
share.
common
common
Proceeds—
For
working capital. Office—1010 Sawmill River Road,
Yonkers, N. Y. Underwriter—To be furnished by amend¬
Price—At
market.
Proceeds—None. Office—176
St., Brooklyn 1, N. Y. Underwriter—None.
em¬
Plan.
Rem-
• California Test Bureau, Los
Angeles, Calif.
20 (letter of
notification) 1,000 shares of class B
common st^ck.
Pri^e—At nor ($59 per sbare)
Proceeds
-For-working capital, - Office Ethel M. Clark
Nov.
?/o
Oct.
10
President, "Owings Hill, Md.
Underwriter—None;
★ Dow Chemical Co.
Nov.
25
issuable
filed
inally issued
which
1957.
84,121 shares of
upon
was
conversion
by
The
of
common
the
Dobeckmun
stock
$4,000,000
Co.,
(par $5),
4%0 ..sub¬
the
liability of
Aug. 31,
three insurance
assumed by Dow Chemical Co. as of
.These
debentures
are
neld
by
companies.
Duraloy Co., Scottdaie, Pa.
Credit Co.
Corp.
working-
Underwriters—The First Boston
Commonweal
OH
Refining
Co.,
Inc.
(12/11)
Nov. 1 filed $20,000,000 of convertible junior subordin¬
ated
12
timer B.
filed
Burnside
and
Kidder, Peabody & Co., both of New York.
Offering—Indefinitely postponed.
•
(12/2-6)
69,000 shares of common stock {par $1)..
Price—To be supplied by amendment.
Proceeds—For
modernization and improvements. -.Underwriter—Mor¬
Nov.
filed
$50,000,000 senior notes due Nov. 1, 1977.
Price—To be supplied by amendment. Proceeds—To in¬
crease
debentures
amendment.
due
1972.
Price
—
To
be
:
Jan.
due
$1).
Chicago Title & Trust Co*
(Vt
Cooperative Association
4,000 shares of 4% second preferred stock. Price — At
par ($25 per share).
Proceeds—To be added to general
★ Dasco
\
Champion Industries, Inc.
Nov. 7 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
For development and engineering
expenses, raw mate¬
rials and working capital.
Business — Jalousies, storm
windows, screens, etc. Office — 22 Jericho Turnpike,
Mineola, N. Y. Underwriter—Allstate Securities Inc., 80
Wall St., New York.
Jean
Consumers
Oct. 23 filed 240,000 shares of 5%% preferred stock and
Cubacor
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
Price—$100.50
100,000 shares of common stock to be of¬
company's Employees' Stock Option Plan,
Underwriter—None.
Mortgage & Investment Corp.
Commercial
9,000 shares of
(par $10) to be offered for subscription
by
ployees pursuant to-Employee Stock Purchase
Nov. 20 filed
fered under the
ment.
stock
sen
Proceeds—To
other
25% interest
Sept.
Sept. 18 filed 30,000 shares of cumulative
preferred stock
(par $100). Price—To be supplied
by amendment. Pro¬
share.
per
for
stock
(11/29-12/2)
$5
—
stock
indebtedness; to participate
acquisition and exploration of oil properties in joint;,
venture arrangements with other companies in which
the company does not propose to retain morei than a
1,
non-voting common stock (no par) to be offered for
subscription by common and class A common stockhold¬
Inc. '
shares of capital
300,000
'
★ Consolidated Water Power & Paper Co.
.
Carter-Jones Drilling Co.,
Central
American Provident Investors Corp.
Feb. 15 filed 50,000,000 shares of common stock (par one
common
$1).
(par
Kieo.
First Boston
Oct. 10 filed
• Capital Cities Television Corp.
Nov. 8 (letter 01 notification) 52,000 shares of
stock
Office—Ponce, Puerto
Corp., New York.
capital.
working
Underwriter—The
★
Canadian Prospect
Sept.
Statement
Hardware
American
-no-
Underwriter—None.
Corp., New Britain, Conn.
Nov. 5 filed 125,000 shares of common stock (par $12.50)
to be offered in exchange for not to exceed 250,000
shares of common stock of Savage Arms Corp. on the
basis of one-half share of American (plus cash) for each
•
"
■
•.
'
ISSUE
short Aerm debt, to construct additional facilities and td
unsecured
American
REVISED
President, 7140 Mulholland Drive, Los Angeles 28, Calif.
4
Nov.
'
PREVIOUS
ITEMS
•
.
Allen
ADDITIONS
supplied
by
Proceeds—To liquidate deferred credits and
&
Co., Inc., New York.
Durox of
Minnesota, Inc., Denver, Co!ov
Sept. 23 filed 750,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For capital expenditures
and
working
capital.
r^orwriter—American
Colo.
Business
—
Building material,
Underwriters, Inc., Englewood,
Number 5694
186
Volume
V<-»
.
.
The Commercial and Financial Chronicle
.
(2355)
'
*
it Electro Instruments, Inc., New York v.
26 filed. 150,000 shares of common stock, (par $1),
is selling 50,000 shares and 100,000
for
Nov.
Price—To
of which the company
gether
shares
Underwriters—McDonald & Co., Cleveland,
Kidder, Peabody & Co., New York, N. Y.
being sold by present stockholders.
Price—To
Proceeds — For new main
plant construction, working capital and to retire short
term indebtedness. ^Underwriters—Bear, Stearns & Co.
and Paine, Webber, Jackson' & Curtis, both of New York.
are
be supplied by amendment.
"
^Electro
Oct. 30
Precision Corp., Arkadelphia, Ark.
(letter of notification)
60,000 shares of
10
shares
held; rights to expire on Dec. 16.
supplied by amendment. Proceeds — To¬
loans, to construct new steel mill.
be
with
bank
Ohio,
Nov. 12 filed
'
$1,400,000 aggregate market value of com¬
(number of shares to be supplied by amend¬
Price—Also to be supplied by amendment. Pro¬
stock
mon
ceeds—To finance additional exploration work on min¬
ing properties and to provide working capital. Office—
Portland, Ore.
Food
Fair
Nov.
Chucking1 Grinder
to be offered for subscription by common stock¬
holders of record about Dec. 6,
1957, on the basis of one
^Ex-Cell-O Corp., Detroit, Mich.
25 filed 88,000 shares of common stock (par $3)
'to be offered in exchange for common stock of Bryant
four-tenths of
'share.
of
Springfield,- Va.,
at
of
rate
Ex-Cell-O share for each full Bryant
become effective upon acceptance by
an
Offer will
holders of not less than 209,000 shares (95%) of all com¬
mon stock of
Bryant outstanding.
Underwriter—None.
^Falcon Oil Co., Las Vegas, Nev.
Nov." 21 (letter of notification) 28,500-shares of class B
^
.
stock. Price—At par
common
,-VFor
development
Fourth,
($10
share).
per
of oil property.
St.^ Las Vegas,7Nev.
^
.
Proceeds
Office -—,710
So.
Underwriter—Richard A.
.
'Steele, Manhattan Beach, Calif., President.
Famous Virginia
Nov.
6
stock.'
Foods Corp.
Office—922 Jefferson St.,-. Lynchburg, Va.
;Uhderwriter—Whitney & Co. ^ Inc., Washington, D. C.
rFine Arts Acceptance Corp.
,
"
•
- W
$525,000 of 642% subordinated sinking fund
debentures: (with non-detachable common stock pur¬
chase warrants), due Nov. 1,. 1977. Price—95% of prin¬
cipal amount, Proceeds—For working capital and gen¬
eral corporate purposes. Underwriters—Woodcock, Hess,
"Moyer & Co., Inc.; Boenning & Co.; Suplee, Yeatman,Moslev & Co., Inc., and Paul & Lynch, all of Philadel¬
;"5.
First International Fire Insurance
common
'stock
(par
Price — $3 per share. Proceeds — For
capital and surplus and for first year's deficit. Office—<
3395
S.
Bannock
American.
1
St., Englewood, Colo.. Underwriter
—
Underwriters, Inc., Englewood,; Colo.
First National
Life
stock
common
share
new
(par
one
for
each
two shares held; rights to
expire
Price—To be supplied by amendment.
Proceeds—To repay bank loans and for real estate
operon
Dec. 20,
1957.
tions and
financing. Underwriter—Eastman Dillon, Union
Securities & Co., New York.
Food Fair Stores, Inc.,
owner of about 45%
of the outstanding common stock,
has indicated that it intends to exercise its
rights.
' i'
■
•
subscription
•
Forest Laboratories, Inc.;
Aug. 28 filed 200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
Insurance Co.,
of company's products,
working capital, addi¬
inventory and accounts receivable, for research
and development and for other
general corporate pur¬
poses.
Colo.
Phoenix, Ariz.
Office—Brooklyn, N. Y. Underwriters—Alfred L.
Co., New York; and H. Carroll & Co., Denver,
General Aniline & Film
Corp., New York
Jan. 14 filed 426,988 shares of common A stock
(no par)
and 1,537,500 shares of common B stock
(par $1). Pro¬
ceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive
bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb &
Co., Lehman Brothen
and Glore, Forgan & Co.
(jointly). Bids —Had been
(EDT) on May
Washington 25,
13 at Room 654, 101 Indiana
Ave., N. W.,
D. C., but bidding has been postponed.
General Automatics Corp.,
Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and
assem¬
July 29 filed 106,500 shares of common stock (par $4),
of which 90,000 shares are. to be offered publicly and
16,500 shares to employees pursuant to stock purchase
options. Price—To public, $12 per share. Proceeds—For
bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road, N
W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,
expansion and other corporate purposes.: Underwriter—
General Credit, Inc.,
Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
•preference stock, to be offered in units of $500 of deben¬
Npne/ v
i
-
7
", v.*
Florida Steel
v.:
y
1
(Corp., Tampa,
Fla. :(.12/3)
.
-
filed 80,000 shares of common-stock (par $1)
to be offered for subscription by common * stockholders
Nov.
12
of record
Nov.
29, 1957, at the rate of one new share
Ga.
tures and 40 warrants.
Price—$500
unit.
per
Parking, Inc.
Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune &
Co., Las Vegas, Nev. '
Genie Craft
stock
Proceeds—
Corp.
.
(letter of notification)
debentures
and
$100,000 of 10-year 6%
120,000
shares
of
(par 10 cents)
to be offered in units
20 shares of common stock.
common
of
one $50
Price—$100
Proceeds—To discharge short term
obligations;
purchase merchandise inventory; and for
working cap¬
ital. Office
1022 18st St., N.
W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.
debenture and
per unit.
—
•
Gold Seal
Oct.
25
Dairy Products Corp. (12/3)
175,000 shares of class A stock
filed
(par 10s
15,000 shares are to
be
reserved
prior offer to employees.
Price — To
be
sup¬
plied by amendment.
Proceeds—To acquire outstanding
cents)
of
which
for
stock of Kulka Electric
Manufacturing Co., Inc. Office
—Elizabeth, N. J. Underwriter—Amos Treat & Co., Inc.,
New York.
Great
tional
scheduled to be received up to 3:45 p.m.
Co<:
Aug. 26 (letter of notification), 100,000 shares of
General
June 18 (letter of
notification) 240,000 shares of common
stock (par $1). Price—$1.25
per share. Proceeds—To re¬
tire outstanding debt; for
expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood
convertible
cent)
Powell
Oct. 25 filed
phia, Pa.
(12/6)
motion
(letter of notification) 5,000 shares of common
Price—$6.67 per share.:-; Proceeds—To selling
'stockholder.
working capital. Underwriter—None
Offering to be made through selected dealers.
Application is still pending with SEC.
named.
Aug. 8
Rock, Ark.
Properties, Inc.
Nov. 12 filed 2,499,116 shares of
Co:
For expansion and
and
Fluorspar Corp. of America
ment).
common
stock (par $1). Price—$4 per share. Proceeds—For office
and' laboratory equipment;
inventory, working capital,
etc'.' Underwriter—Nunn-Groves Co., Little
each
35
Divide Oil
Corp.
Oct. 11
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
To pay balance on oil and
gas properties, and unsecured
stock
notes and for drilling and working
capital. Office—207
Newhouse Bldg., Salt Lake
City, Utah. Underwriter—
Birkenmayer & Co., Denver, Colo.
Great Northern
Oct.
Life
Insurance Co.
7
(letter of notification) 44,400 shares of common
$1). Price—$6.75 per share. Proceeds-1—For
capital stock and unassigned surplus. Office — 119 W.
Rudisill Blvd., Fort
Wayne, Ind. Underwriter—North¬
western Investment
Inc., Fort Wayne, Ind.
stnrk
(oar
Guardian Insurance
Corp., Baltimore, Md.
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents
per warrant
to organizers,
incorporators, management, and/or direc¬
tors.
Price—$10
share.
per
Proceeds—For working cap-*
Ital and general corporate purposes.
•
Gulf States
Land &
Underwriter—None.
Industries, Inc.
Sept. 25 filed 316,814 shares of common stock (par 50
cents) and $2,754,900 6% first mortgage sinking fund
bonds due 1972 being offered in
exchange for the out¬
standing $4.50 v prior preferred stock on the following
basis: For each preferred share (a)
mon
stock,
(b)
or
$100
of
liy2 shares of
bonds, plus
iy2
com¬
shares of
stock.
The offer, which is conditioned
upon its accept¬
by holders of at least 85% of the 27,549 outstand¬
ing preferred shares, will expire on Dec. 20. Dealer i
ance
Manager—Howard, Weil, Labouisse, Friedrichs & Co.,
New
NEW
V>
November 29
;
Edison
Brockton
(Friday)
Co.)
&
December
2
$3,000,000
Bnrnside &
Co., Inc.)
Gold Seal Dairy Products Corp
Treat
Co.i
&
(Sherry
Co.;
December
175,000
&
3
Meeds)
Peabody
Commonwealth
by
100,000
'The
common
Laird,
Bids
11
EST)
am
Bonds
Hydra-Power
Gleich
"
noon
&
'Bids
EST)
Fair
Properties,
Securities
(Lee
ChesapeaKt
Maryland
(Putnam &
6
•
(Southeastern
(b
W.
Co.;
G.
Aetna
Kletz
January
Securities
&
Corp.;
$270,000
Co.)
826,500
shares
Preferred
Co.)
14,
'Bids
to
be
January 21,
Common
Pacific Gas
&
1958
Electric
(Bids
January
'Monday)
EST)
to
be
22,
1958
'Bids
FRT>
no^r
$30,000,000
Corp.)
(Wednesday)
Equip. Trust Ctfs.
$4.140 000
(Offering
to
stockholders—no
February
Common
Co.)
$1,125,000
Indiana
&
13.
underwriting)
Michigan
'Bids
11
1958
Electric
a m
EST)
Underwriter
promissory notes and 100 shares of class A
(par $100) to be offered in units of $400
and
one
riococrtj—For
purposes.
share
of stock.
woirxiiig
eapiu*i
Price—$500 per
and
general
about
of
class
at
$6 per share at the rate of two
B
common
stock
to
be
offered
new
to
stockholders
shares for each
Proceeds—For working capital.
Lauderdale, Fla.
Office
Underwriter—None.
June
27
filed
Price—At
Fund, Inc., Springfield, III.
100,000 shares of capital stock (par $1).
market.
Proceeds—For
investment.
Distrib¬
Investment
Manager—Horace Mann Investors,
Inc., Des Moines, la., of which Charles F Martin is also
^resident.
Office—216 E. Monroe St., Springfield, I1L
Mines, Ltd.
(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share).
Proceeds—
To repay loan, to purchase equipment and machinery
and for working capital.
Office—1551-A Eglinton Ave.
West, Toronto 10, Ont., Canada. Underwriter—D'Amico
& Co., Inc., Buffalo, N. Y.
20
stock.
it Hydra-Power Corp. (12/12)
22 (letter of notification) 90,000 shares of
mon
$720,000,000
Co
stock
(par
corporate
Securities
Bonds
10
cents).
Price—$3
per
share.
com¬
Pro¬
ceeds—To retire $100,000 of debentures and for general
purposes.
derwriters—D.
(Thursday)
$25,000,000
cor¬
Underwriter—None.
Nov.
(Friday)
American Telephone & Telegrpah Co._-Debentures
$300,000
.actions
&
Bonds
February 7, 1958
27.
Home Owners Life Insurance Co.
Nov. 1 filed 50,000 shares of class A common stock to be
offered to the public at $5 per share and 116,366 shares
Nov.
$60,000,000
Norfolk & Western Ry.._—
par-for-par basis.
stock
debentures
mon
Co
invited)
a
Dec.
• Horlac
(Tuesday)
Common
Securities
Puller
Bonds Debentures
$50 000.000
shares
Telephone Co. ul
Debentures
am
Co.; and Estabrook
(Tuesday)
Invited)
on
Horace Mann
Bonds
&
$30,000,000
1958
Light Co.
(Philip), Inc., Boise, Idaho
(letter of notification) $40,000 of two-year 8%
five shares held.
$4,000,000
(Thursday)
Commonwealth Edison Co
(Friday)
2,499,116
common
porate
Common
Fear ton
Cooney & Co.,
1
Nov. 14
of
$4,500,000
$7,000,000
Motel Co, of Roanoke, Inc
Roach
Co.; Chas.
Higginson Corp.) $6,000,000
10
&
T.
• Heppner
—Fort
Bonds
Paoer Mills, Ltd..-Series B ord.
*i
Inc.)
(Thursday)
Michael
Electric
1982, of Connecticut Power Co.
exchange offer expires on
unsecured
Connecticut Light & Power Co
$25,000,000
Co.)
'otomai
•'
Co.
Common
Heller
H
-
—None.
mm.
12
Underwriter
Statement effective Nov. 26.
Oct. 8 filed $2,400,000 of 3% secured
debentures, series
A, uuc
x,
xyu«,
oeing ofteied in exchange for 3%
first and general mortgage
bonds, series D, due May l\
utor and
Inc
&
>«cember
American Israeli
EST)
(Dean Witter & Co.)
(Offering to stockholders—underwritten by Eastman Dillon,
Union
a.m.
and
&
Corp
EST)
a.m
December
Food
Stanley
$3,435,000
Inc. )
Co.,
Service
10
Stuart &
Bonds
January 9, 1958
Euuip. Trust Ctfs.
-
(Elyth
and Halsey,
$40,000,000
Bonds
Corp
Johnson;
|
$4,140,000
^R
Public
Co.;'
&
Northern Natural Gas Co.————Debentures
"•
Inc.
11
Ltd.
$20,000,000
•
(Offering to stockholders—no underwriting)
(Thursday)
December5
Wisconsin
Corp
Debentures
Equip. Trust Ctfs.
EST)
dood
(Bids
BostOD
Mines
The
Co
Southwestern States Telephone Co.—.-
*
$1,545,000
Permian Basin Pipeline Co
(Bids noon CST) $5,400,000
7
CST)
.
(D.
$20,000,000
Equipment Trust Ctfs.
,
$3,435,000
Refining
First
(Bids
Roman
Baltimore
Equip. Trust Ctfs.
invited)
December
Wednesday)
Chicago, Milw., St. Paul & Pac. RR.
'Bids
Oil
Toronto, Canada
New York.
Hartford
Suburban Electric Co
4
Norfolk & Western Ry
be
noon
Common
Peabody & Co.) 80,000 shares
December
to
Statement effective Nov. 13.
Nickel
Aug. 23 (letter of notification) 600,000 shares of common
(par $1-Canadian),
Price — 50 cents per share.
Proceeds—For development of
property and for general
corporate purposes.
Office — Suite 607, 320 Bay St.,
)
t
RR._
(Dillon, Read & Co.
Virginia Electric & Power Co
t
$18,000,000
Natural Gas Pipeline Co. of America-—-
shares
Florida Steel Corp
Common
(Ottering to stockholders—underwritten by McDonald & Co. and
Kidder,
invited)
embe>
Ohio
(Bids
$102,120
Co.)
&
&
be
Chicago & North Western Ry.__Equip. Trust Ctfs.
(Tuesday)
(J. S.) & Sons Stores Co., Inc.
(Kidder,
Det
Baltimore
•
-Debentures
to
(Bids
stockholders—underwritten
to
.
——Debentures
-—Class A
Bissell
Dillon
shares
$75,000
Artesian Water Co
(Olf firing
(Bids
Class A Common
Inc.)
Bonds
$3,000,000
(City of)
09,000 shares
Young (Donald W.) & Son, Inc.
;
Montreal
(Tuesday)
EST)
noon
Orleans, La.
Hampshire
stock
to
(Bids
-
.
...Common
(Mortimer B.
i
•
(Monday)
•
December 10
Brockton Edison
-
—
(Amos
CALENDAR
v-!
Co./——_j.Z—^Preferred
/'..'.-(Kuhn; Loeb
Duraloy Co.
ISSUE
Office—New Rochelle, N. Y.
Un¬
Gleich
Co., Stanley Heller & Co., Aetna
Corp. and Michael G Kletz & Co., Inc., all
Continued
on
page
36
36
The Commercial and Financial Chronicle
(2356)
Continued from page
of
if Medical Illustrations,
35
dale, Fla.
•
lliowata
Co.
Oil
(letter of notification) 900.000 shares of common
Price—10 cents per snare. Pro¬
ceeds—For exploration and operation of oil properties.
Office—1509 Mile High Center, Denver, Colo.
Under¬
Oct
24
(par one cent).
stock
Offering
writer
Wayne Jewell Co., Denver, Colo.
Temporarily suspended by SEC.
—
—
stock
(letter of notification)
$1).
(par
Nov.
18
(letter
Price
debentures.
International
Staple & Machine Co.
notification) 20,000 shares of 6% cumu¬
lative preferred stock of which 10,000 shares are to be
offered to the public and the remainder to stockholders
of record Oct. 10, 1957 in exchange for seven shares of
common for each share of preferred.
Both subscription
and tenders for exchange must be received on or before
Nov. 50, 1957. Price—At par ($10 per share). Proceeds
—For working capital. Office—497 Union Trust Build¬
ing, Pittsburgh 19, Pa. Underwriter—None.
if Miller & Mitler,
Nov.
common
stockholders
the basis
on
Price—At par
(Sl00 per share). Proceeds—To reduce bank loans. Of¬
fice—Galesburg, 111. Underwriter—None. Statement ef¬
fective Oct. 23.
.
Israel-Mediterranean
Petroleum, Inc. of Panama
Sept. 27 filed voting trustees covering 1,000,000 shares of
common stock (par one cent).
Price—At the market on
the American Stock Exchange.
Proceeds—For explora¬
tory drilling and
development of presently licensed acre¬
of additional acreage. Under¬
for acquisition
and
age
writer—None.
Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
ship and for working capital. Under¬
writer—Anderson Cook Co., Inc., Palm Beach, Fla.
mon
—To
purchase
a
Jartaf, Inc., Washington. D. C.
July 30 filed $10,000,000 of 5^-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
stock (par 20 cents) to be offered in units of a $1,000
debenture and
and
10
shares
share of stock.
one
of stock, or a $100 debenture
Price—Par for debenture, plus
$2 per share for each 10 shares of Stock. Proceeds—For
price
$100
and
debentures
$300
non-convertible
of
per
(letter of notification) 5,000 shares of common
19
Price—At
($10
par
per
Office—11746 Appleton Ave.,
Detroit
Underwriter—None.
Monticello
Associates, Inc.
Price—At par
share). Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia. Pa.
Montreal
($1
(City of)
per
(12/10)
Nov. 15 filed $11,000,000 of sinking fund debentures due
Jan. 1, 1978 and $7,000,000 of sinking fund debentures
15, 1978. Price—To be supplied by amendment.
Proceeds
For public works and local improvements.
Underwriter—To be determined by competitive bidding.
Probable bidders: Shields & Co., Halsey, Stuart & Co.
Inc., Savard & Hart and Salomon Bros. & Hutzler (joint¬
ly); Lehman Brothers, White, Weld & Co., Eastman
Dillon, Union Securities & Co. and Blyth & Co., Inc.
(jointly). Bids—Expected on Dec. 10.
—
Mortgage Clubs of America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit
to the company. Proceeds—To be invested in small loans
and for
man
Pro¬
ceeds—For
tute
mining expenses. Office—830 North Insti¬
St., Colorado Springs, Colo. Underwriter—None.
it Lance,
Nov.
Inc.
14
(letter of notification) 1,648 shares of class A
voting stock (par $5) and 2,472 shares of class B non¬
voting stock (par $5) to be offered to employees of the
company under the provisions of the "Lance Employee
Stock Plan." Price
SI 1.50 per share.
Proceeds — For
is President.
if Motel Co. of Roanoke, Inc., Roanoke, Va. (12/9)
Nov. 18 (letter of notification) 60,000 shares of common
stock
(par 40
cents).
Price—$5
per
share.
Proceeds—
Boulevard, Char¬
Proceeds—For
New York.
investment.
Sponsor—Ira
Haupt & Co..
:
Nassau Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock.
St., Princeton, N. J.
be offered pursuant to
noisixigLoti,
be
filed 21,725
shares
of
stock
common
(par $10)
offered
to employees holding series M
options
granted pursuant to the company's Employee Stock
Op¬
tion Plan. Price—-$79 per share.
if Litecraft Industries Ltd., Passaic, N. J.
Nov. 22 filed $500,000 of 6Vs%
sinking fund debentures
due 1977 (with warrants
attached) and 50,000 shares
of common stock
(par $1).
Price—Of debentures, 100%
and accrued
interest; and of stock, $5 per share. Pro¬
ceeds—To retire mortgage and other
indebtedness; to
purchase machinery; and for working capital.
—Manufacture of
fixtures.
Business
incandescent and fluorescent
lighting
V/. Brooks & Co., Inc., New
Underwriter—P.
York.
-
Magdalena Mining & Milling Co.
(letter of notification) $260,000
Nov, 7
fund debentures due
1960
of
7%
sinking
and
65,000 shares of common
(par $1) to be offered in units of one
$100 deben¬
25 shares of common stock.
Price
$100 Del¬
imit. Proceeds
For mining expenses. Office
1260
Simms St., Lakewood, Colo.
Underwriter—Peters Writer
stock
ture and
—
—
—
&
Christensen, Inc., Denver, Colo.
if Mascot Film Productions
Nov.
18
For
(letter of notification)
stock.
125,000 shares
of
com¬
Price—Al
par ($1 per share).
Proceeds—
Office—Room 202, 5339 LanNorth Hollywood, Calif. Underwriter—
production of films.
kershim Blvd.,
None.
stock.
—For
Mines, Inc., Kellogg, Idaho
(letter of notification) 800,000
shares of
Price—At
mining
par
(17V2
expenses.
Idaho.
cents
per
share).
common
Proceeds
Office—Sidney Bldg., Kellogg
Malcolm C. Brown
Standard Securities Corp.,
Idaho.
is
President.
Underwriter-
Spokane, Wash., and Kellogg
if Medallion Pictures Corp.
Nov. 21 (letter of
notification) 75,000 shares of common
stock (par 10 cents).
Price—At market. Proceeds—To
: five selling stockholders.
Office
200 West 57th
—
New York.
Underwriter—None.
St.,
Gas
&
1958
Ventures—Second
condi¬
Fund, Ltd. and
Fund, Ltd.,
1958
Madison, N. J.
Oct. 29 filed
$2,500,000 of participations in capital as lim¬
partnership interests to be offered in $25,000 mini¬
ited
amounts.
mum
oil
of
Proceeds—For
properties.
acquisition, exploration,
Underwriter
Co., Ltd., Madison, N. J.
Oil
—
Mineral
'
Projects
'
,
& Mineral
Operations, Inc. •
(letter of notification) 100,000 shares of
Nov. 4
>>
common
(par $1).
Wright Bldg., Tulsa, Okla.
curities
Underwriter—Universal Se¬
Co., Tulsa, Okla.
Old American
-
*
Life
Co., Seattle, Wash.
" i f
July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in
units
of
one
share
common
Price—$260 per unit.
Parifir
Oct.
25
and
Proceeds
l> ^ctopn
filed
$30,000,000
three
class
A
shares.
For
working capital
Underwriter—None. *
—
pw
of
sinking fund debentures,
D, due 1987 (guaranteed unconditionally as to
principal and interest by the Province of British Column
bia). Price—To be supplied by amendment. Proceeds—
series
To repay
bank loans.
Underwriters—Morgan Stanley &c
Co., Harris & Partners, Inc. and Burns
Inc., all of New York.
Pacific
for
Bros. &
Petroleums, Ltd.
•
1,588,998 shares
are
stock
common
to
be offered
outstanding Merrill Petroleums, Ltd.
the
at
Dentoq,
Offering—Indefinitely postponed.
Oct. 11 filed 1,603,998 shares of
of which
of
rate
one
Pacific
share
for
in
exchange
common
each
.
(par $1),
two
stock
Merrill
shares; the remaining 15,000 shares are to be issuable
upon exercise of presently outstanding options granted
by Merrill, which options will be assumed by Pacific.
Office—Calgary, Alberta, Canada. Underwriter—None.
Statement
effective
Nov.
13.
Pan American Tool Co.,
Houston, Texas
Oct. 28 filed 165,000 shares of common stock
to be offered in blocks of not less than
(par $1),
3,000 shares. Price
—To
be
supplied by amendment. Proceeds
To dis¬
charge trade accounts payable, to buy tools and equip¬
working capital. Underwriter—None.
—
Price—At
Office—10
Investment Advisor
inc., same address.
—
Nassau
Harland
W
Pearce-Simpson, Inc., Miami, Fla.
Nov.
filed 415,450 shares of common stock
(par 59
Price—$1 per share. Proceeds—For capital ex¬
penditures; to retire loans and notes 1 outstanding; and
for inventories,
tools, and other corporate purposes.
Underwriter—Christopher Corp., Miami, Fla.
if Pennsalt Chemicals Corp.
Oct. 21 (letter of notification) an undeterminable amount
of shares of common stock (par $10) to be offered under
Employee
an
'
7
Stock
Purchase
Office—Room 202 Houston Title Bldg.,
Houston, Tex. Underwriter—Scott Taylor & Co., Inc..
New York, N. Y.
National Cylinder Gas Co.
Aug. 28 filed $17,500,000 of subordinated debentures due
Sept. 1, 1977 (convertible on or before Sept. 1, 1967).
,
Price—-To be supplied
by amendment. Proceeds—I'or
expansion and working capital. Underwriter — Merrill
Lynch, Pierce, Fenner & Beane, New York. Offering —
Indefinitely postponed.
National
Lithium Corp.,
New York,
3,120,000 shares of common stock (par one
cent).
Price—$1.25 per share.
Proceeds—For acquisi¬
tion of properties; for ore
testing program; for assess¬
19 filed
ment work
whichever
is
lower.
offered
in
Co.
&
Inc.
Orleans
Halsey,
Stuart
&
Co.
Inc.,
both
York.
New
and
named
Office
Dec.
26.
Price—$25
program.
leans, La.
Nichols,
one
class B
Peoples Security & Endowment Co. of America.
Montgomery, Ala. Underwriter — None. T.J.
—
Patterson
is
President.
>
.
if Permian Basin Pipeline Co.,
■
Omaha, Neb.
(12/12)Nov.
22
filed
offered
ment.
of
826,500 shares of
for
one
subscription
new
share
common
by
for
stock
common
each
two
(par $1)
stockholders
shares
held
of
12, 1957.
Price—To be supplied by amend¬
Proceed5'—Together with other funds, to repay
advances from Northern Natural Gas
Co., the parent, and
construction program.
Underwriter—None.
for
if Piasecki Aircraft Corp.
(letter of notification) not to exceed 5,000 shares
of
Service Inc.
12
struciion
and
Oct. 18
Public
(letter of notification) 5.965 shares of common
stock (no par) to be offered by
subscription by minority
stockholders of record Dec. 2, 1957 on the basis of one
new
share for each eight shares held; rights to
expire
on
shares
record Dec.
(12/11)
Nov. 19 filed $40,000,000 of first
mortgage pipeline bonds
due 1977. " Price—To be supplied by amendment.
Pro¬
ceeds— To reduce bank loans.
Underwriters— Dillon,
New
of four class A
purchaser
agreeing to donate each class B
share to the Peoples Security Foundation for Christian
Education,, to be incorporated as a non-profit corpora¬
tion.
Price—$2 per share. Proceeds — For capital and
surplus to finance a proposed insurance company to be-
rate
Pipeline Co. of America
units
the
share,
at
Gas
Address—Three
Underwriter—None.
Peoples Security Investment Co.
28 filed 1,000,000 preorganization subscriptions to
250,000 preorganization
subscriptions to class B non-voting common stock to be
pected to be amended.
of
of
class A voting common stock and
be
Read
95%
Oct.
to
Natural
Price—At
Proceeds—None.
Penn Center PlAza.
on the Yellowknife
propertied; and for cost
concentration plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York. Statement ex¬
a
•
Plan.
price on the New York Stock Exchange be¬
tween Aug. 1,
1957, through Oct. 31, 1957, or the closing,
price on the New York Stock Exchange Oct. 31, 1957,.
average
porate purposes.
Nov.
Mascot
June 3
investment.
Biochemicals, Inc.
Sept. 10 (letter of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$3 per share. Proceeds
—For cost of plant and inventory and for general cor¬
-Feb.
mon
Proceeds—For
National
if Libbey-Owens-Ford Glass Co., Toledo, Ohio
Nov. 22
Ventures—First
cents).
Nov. 22 filed 20,000 shares of
to
Oil
Gas
Municipal Investment Trust Fund, Inc. (N. Y.;
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market
market.
ticipation Plan.
market
ment and for
ic Lehigh Portland Cement Co.
common stock
(par $15) to
company's Employees' Stock Par¬
of
4
&
For purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.
—
working capital.
Office—1300 South
lotte, N. C. Underwriter—None.
100,000 shares of common stock (par 25
Price—To be supplied by amendment. Proceeds
and other corporate purposes.
secured by second mortgage on home properties.
Office
—Springfield, Mass. Underwriter—None. Charles Hersh-
com¬
•
Price—$2.50 per share. Proceeds—For
development of oil and mineral properties. Office—208
a shopping center and other capital im¬
provements; for retirement of present preferred shares;
it Key Atomic Minerals Corp.
Nov. 13 (letter of notification) 150,000 shares of
mon
stock (par 10 cents).
Price—S2 per share.
1
Engineering Corp.
",
stock
Feb. 18 (letter of notification) 300,000 shares of common
gtock.
construction
prepay indebtedness
to Norden-Ketay Corp.; to
purchase additional equipment and for working capital.
Underwriter—Hay den, Stone & Co., New York. Offer¬
Proceeds—For
share).
for
and
—To
etc.
* Mobile Credit Corp.
Nov.
loans
Sept. 20 filed
cents).
debentures.
unit.
Proceeds — For construction,
equipment and for working capital.
Office—136 Mari¬
etta St., N. W., Atlanta, Ga.
Underwriter—None.
—
bank
Nuclear Science &
Oil
construction of
working capital, etc. Underwriter—None.
reduce
Underwriter—Blyth & Co., Inc., San Francisco
ing—Temporarily postponed because
due Jan.
Isthmus
May 21
(12/5)
■
$25,009,000 of sinking fund debentures due1
Price—To be supplied by amendment.
Proceeds—To
program.
A, and $83,000 of 8% debentures,
series A, to be offered in units of $200 of convertible
share for each two shares held of record Oct.
18, 1957; rights to expire on Dec. 16, 1957.
1977.
tions.
39, Mich.
new
Inc.
(letter of notification)
for
subscription by
1,
$166,000 of 8% convert¬
14
stock.
Co.
Nov. 20 filed
ible debentures, series
working capital
one
—
capital. Office — 333 Montgomery St., San Francisco,
Calif, Underwriter — Guardian Securities Corp., San
Sept. 27 filed 4.900 shares of common stock being offered
of
notification) $65,000 of 6% 15-year
At par.
Proceeds — For working
of
if Northern Natural Gas Co.
Nov.
and New York.
if Mercantile Acceptance Corp. of California
Francisco, Calif.
Oct. 14 (letter of
Intra State Telephone
Inc.
24,000 shares of common
Price—$2 per share. Proceeds — For
equipment, supplies and working capital. Office—4912
Cordell Ave., Bethesda, Md. Underwriter—None.
Nov. 25
York; and Roman & Johnson of Fort Lauder¬
New
Thursday, November 28,1957
...
share.
per
Office—317
Proceeds—For
Baronne
St.,
New
con-
Or¬
Underwriter—None.
common
Purchase
Exchange.
ternational
to
be
offered
Price—At
under
Employees Stock
market
Proceeds—None.
on
American Stock
Address—Island Read, In¬
Airport, Philadelphia 42, Pa.
Underwriter—
None.
* PiasecVi Aircraft Corp., Philadelphia, Pa.
participations in the company's Stock
Participation Plan for Employees, together with 6,000
Nov. 26 filed 100
shares of
Inc., Exeter, N. H.
stock
Plan.
common
stock which may be
25,000 shares of common stock (no par).
Price—$27-per share. Proceeds—To repay short term
the
bank
purchased under
Nov. 15 filed $5,646,750 of 5%
Nov.
14 filed
loans
hatching
and
eggs
for working
and
day-old
capital.
^hic^s.
Business
—
Sells
Underwriter-—None.
George E. Coleman, Jr., is President.
plan.
Pittsburgh
Brewing Co., Pittsburgh, Pa.
sinking fund income suboridnated debentures due Oct. 31,
1992; 112,935 shares of
common
stock
(par $1);
and
451,740
warrants
to
pur-
Volume
186
Number
5694
.
s
.
The Commercial and Financial Chronicle
chase 451,740 additional shares of common stock to be
offered in units of $50 of
debentures, one common share
and warrants to purchase four common shares to be
l
holders; $1.37^ to public.
«
;
Proceeds—For expenses in¬
drilling of oil wells. Offiee—Suite 14, 1500
cidental to
Massachusetts
Ave., N, W., Washington, D. C.
offered in exchange for each
outstanding share of pre-... writer—None.
ferred stock (par $25) plus accrued dividends. Purpose
Simplicity Pattern Co. Inc.
—To eliminate or reduce
preferred dividend arrearages.
Oct. 10 filed 155,000 shares of common
'
1
Underwriter—None.
ceeds
—For
geological studies, reserve for contingent
liability, for machinery and equipment and other re¬
serves;.; Office —* 616
Judge Bldg., Salt Lake City, Utah.
Underwriter—Steven Randall & Co., Inc., New York. '
Potytronic Research, Inc.
Nov. 4 (letter of
notification) 80,000 shares of common
stock;(par 10 cents). Price—$2.50 per share. Proceeds—
For equipment and research,
development program and
working capital. Office—4130 Howard Ave., Kensing¬
ton, Md. Underwriters—First Washington Corp. and The
Stanford
*
•
Corp., both of Washington, D. C.
Change
of
Name—Formerly Acme Tool & Engineering Corp.
'
'
'
(par $1).
Southern Colorado
Oct.
21
filed
Power
'
Co.
^
stock.
$1,780,780 of convertible debentures
due
1, 1972 to be offered for subscription by common
standing 5% term loan and/or provide additional workon the basis of
$100 of debentures for each V
capital. Office—Roanoke, 111. "Underwriter—White
as of Nov. 26 1957; rights to ex•
& Co., St. Louis, Mo., on a best-efforts basis..
pire on Dec. 13, 1957.1 Price—100% of principal amount.
Union of South Africa
Proceeds—Together with funds from private sale of;
Sept. 12 filed $15,000,000 10-year external loan bonds
$1,500,000 5%% first mortgage bonds, to repay bank
due Oct. 1, 1967. Price—To be supplied by amendment.
loans and for new construction. Underwriters—Stone &
Proceeds—For transportation development program. Un¬
Webster Securities Corp. and
Paine, We.bberr Jackson &
derwriter—Dillon, Read & Co. Inc., New York. Offering
Curtis, both of New York.
% ;;
*
;
—Postponed temporarily.
'
'''\
■
Reichhold Chemicals, Inc.
10 filed 200,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—For
Oct.
7
and working capital. Underwriter—
convertible
Temporarily
Instrument
Corp.
notification) $126,000 of 10-year 10%
(letter of
debentures
and
12,500 shares of common
stock (no par) to be offered in units of one $100 debenture
and ten
shares
of
Proceeds—For
tory.
common
equipment,
stock.
Price—$200 per unit.
working capital and inven¬
Office—7962
S. E. Powell Blvd., Portland, Ore.
Underwriter—Campbell & Robbins, Inc., Portland, Ore.
Resolute Bay
Trading Co., Ltd.
(letter of notification) 30,000 shares of
Oct. 29
bank
loans
and
Witter
common
lative
and
John, N. B., Canada.
Irving Weis & Co.. New York.
•
Roach
(Hal)
Productions
Aug. 8 filed 375,000 shares of
Price—$3
share.
per
(12/9)
Underwriter—
working capital.
Office—3309
Winthrop
Standard
Oct.
15
Oil
Co.
St.,
Fort
(New Jersey)
6,549,124 shares of capital stock (par $7)
being offered for subscription by stockholders of record
Nov. 8, 1957, at the rate of one new share for each 30
shares held; rights to expire on Dec. 18, 1957.
Price—$44
per share.
Proceeds—To increase investments in sub¬
Standard
Underwriter—Morgan
Steel
Products Manufacturing Co.
notification) $165,000 of 7% 10-year
debentures, 11,000 shares of common stock (par $2.50)
and warrants to buy 11,000 additional common shares
to be offered in units of $30 principal amount of deben¬
tures, two shares of stock and a warrant to buy two
common shares at $7.50 each.
Price—$45 per unit. Pro¬
Oct.
3
(letter of
For
—
S.
16th
equipment and working capital. Office—
St., Milwaukee, Wis. Underwriter — The
Milwaukee Co., Milwaukee, Wis.
due
5
filed
1987.
struction
duction of filmed television commercials and for
working
capital. Business—Produces films for television. Office
on
Co.
,
(12/11)
$4,500,000 first mortgage bonds, series D,
Proceeds—To repay bank loans and for con¬
Underwriter—To be determined bv
program.
&
—Gulver City, Calif. Underwriter—S. D. Fuller &
New \ork. Statement effective Nov. 14.
Electric
Co.,
if Rocky Mountain Quarter Racing Association
(letter oi notification) 300,000 shares of common
stock. Price—At par ($1 per share).
Proceeds—To re¬
pay outstnding indebtedness.
Office — Littleton, Colo.
Oct. 31
Underwriter—R.
B.
Ford
Co.
/
• Rohr Aircraft Corp.
Nov. 21 filed 93,600 shares of common stock (par $1) to
be issued under the company's Restricted Stock Option
Plan for officers and key employees.
Rose Records, 4nc* July 22 (letter of notification) 11,022 shares of
common
competitive
bidding.
Probable
bidders:
Halsey,
Stuart
Co. Inc.; Kidder, Peabody & Co. and White, Weld &
Co. (jointly). Bids—To be received up to 11 a.m.
(EST)
Dec. 11 at 441 Stuart St., Boston 16,
Mass.
Surinam Corp., Houston, Tex.
21 filed 10,000,000 shares of common
Oct.
Syntex Corp.
stock. Price—At par (SI per share). Proceeds—For work¬
ing capital., Office—7Q5 South Husband St., Stillwater,
of
Okla.
to
common
holders of options on the basis
to
Underwriter—Richard B. Burns Securities Agency,
Stillwater, Okla.'
Royal
1957,
the
on
shares of
basis
Price—At par.
stockholders of record Nov. 20,
$100 of debentures for each 20
common
of
stock
held; rights to expire on Dec. 4.
Proceeds—To reduce bank loans and for
common
working capital.
Rule
(C. F.)
Construction Co.
Sept. 13 filed 127,289 shares of
common stock (par $10).
Price—$13 per share. Proceeds—To retire outstanding
loans and for working capital and investment in addi¬
tional equipment. Office—Nashville, Tenn. Underwriter
—None.
Statement
effective Nov. 20.
M.
Realty Co., who is the selling stockholder
Underwriter
—
Yates, Heitner & Woods, St. Louis, Mo.
Offering—Indefinitely postponed.
Schering Corp., Bloomfield, N. J.
Sept. 19 filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par $30) and 418,475 shares of
common
stock
(par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be merged
with Schering Corp. effective Sept. 19, 1957)
on
the
basis of
common
mon
share of preferred stock and
stock for each White class A or
one
share
Shacron
held.
Oil
Tax
IV2 shares of
class
B
com¬
Underwriter—None.
per
Proceeds
—
Underwriter-
For investment.
Equitable Securities Corp., Nashville, Tenn. Offering—
up pending passing ot necessary legislation by
Congress.
Taylor
Price—To
be
supplied
by amendment.
retire short term bank loans
general corporate purposes.
Proceeds
—
To
and. for working capital and
Office — Rochester, N. Y
Corp., New York.
Offer¬
ing—Indefinitely postponed.
Tex-Star Oil & Gas Corp., Dallas, Texas
Oct. 14 filed 600,000 shares of common stock (par $1) to
be offered in exchange for leases on certain
properties.
Underwriter—N one.
Texam Oil Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholder!
on
a
—To
basis of two
new
shares for each share held.
Price
be
supplied by amendment. Proceeds—To repay
Indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purnoses.
Underwriter—None.
ic T^ermoid
100,000
shares
Co., Tren+on, N. J.
Thrift
shares
of
$2.50
Bonus
of
Plan
common
cumulative
1958
stock
States
Coconut
issuance
Trust,
(par
convertible
•
pursuant to
Fiber Corp.
.
(par
one
Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and develop¬
ment work.
Office
Houston, Texas. Underwriter —
cent).
—
None.
4.'
-.
Universal
Drilling Co., Inc., New Orleans, La.
Oct. 31 filed 400,000 shares of class A common stock
(par $1). Price—$5.50 per share. Proceeds—To pay ob¬
ligations incurred and to be incurred in connection with
construction and equipping of a drilling barge; and for
working capital and other corporate purposes.
Under¬
writer—Kohlmeyer & Co., New Orleans, La.
Uranium Corp. of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President..
if Vanadium-Alloys Steel Co.,
Oct.
23
Latrobe, Pa.
(letter of notification)
4,366 shares of common
stock (par $5) to be offered under an Employees Stock
Purchase Plan at a price equivalent to the last sales
price on the American Stock Exchange on a day preced¬
ing the acceptance for offer.
Proceeds—To reimburse
the issuer for the cost of acquisition of stock.
Under¬
Victoreen
Instrument Co.,
Cleveland, O.
$700,000 of 6% convertible subordinated
debentures due Nov. 15, 1967 being offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 100 shares of common stock held
Oct.
9
filed
expire on Nov. 29. Price—At par.
expansion and working capital.
Underwriter—Saunders, Stiver & Co., Cleveland, Ohio.
of Nov. 13; rights to
Proceeds—For
Virginia Electric & Power Co. (12/3)
$20,000,000 of first and refunding mortgage
bonds, series N, due Dec. 1, 1987. Proceeds—For construction expenditures.
Underwriter—To be determined
by
competitive bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and American Se¬
curities Corp. (jointly); Salomon Bros. & Hutzler; East¬
man Dillon, Unfon
Securities & Co.; Stone & Webster
Securities Corp.; White, Weld & Co.
Bids—To be re¬
ceived up to 11 a.m. (EST) on Dec. 3, at 43 Exchange
together with
$1) and 25,000
preferred
(par $50) which may be purchased under said plan.
stock
.
Oct. 29 filed
Place, New York, N. Y.
Warwick Valley Telephone Co.
(letter of notification) 4,708 shares of common
offered for subscription by common
on the basis of one new share for each two
shares held. Price—$20 per share. Proceeds—For con¬
struction of new telephone plant. Office — 47-49 Main
Oct. 24
stock (no par) to be
Instrument Companies
Oct. 1 filed 99,195 shares of common stock (par $10) to
be offered for subscription by common stockholders on
the basis of one new share for each four shares held.
ployees'
common
((par $1) to be offered for subscription by stock¬
holders; then to public. Price—$1.25 per share to stock¬
share.
for
—
Held
Nov. 22 filed $840,000 of Memberships in company's Em¬
Corp.
Sept. 11 (letter of notification) 40,000 shares of
stock
Exempt Bond Fund, Inc., Washington, D. C.
Price—$25
Underwriter—The First Boston
St. Louis Insurance Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57). .Price—$97 per share.
Proceeds
,
—To R.
option to purchase four shares oi
stock; unsubscribed shares to be offered
June 20 filed 40,000 shares of common stock.
Underwriter—Kuhn, Loeb & Co., New
York.
•
share for each
common
certain employees and officers. Price—$2 per share
Proceeds—To pay outstanding obligations to Ogden Corp
Underwriter—None.
McBee Corp.
Nov. 1 fifed $7,675,300 of 20-year 6V4% convertible sub¬
ordinated debentures due Dec. 1, 1977 being offered for
subscription by
one
Ogden
stock
Sept. 30 filed 735,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For expansion program
and other corporate purposes. Office—Washington, D. C.
Underwriter
Southeastern Securities Corp., New York.
as
(Republic of Panama)
and
United
common
writer—None.
stock (par $2)
to be offered for subscription by common stockholders
of Ogden Corp. on the basis of one new share for each
four shares held
of
l.
said
plan, as well as 124,386 shares of common stock to be
issued under the company's Executive Employees Re¬
stricted Stock Option Plan.
stock
(par
one cent).
Price—$1 per share. Proceeds—For explora¬
tion and exploitation of oil, gns and sulphur properties.
Underwriter—T. J. Campbell Investment Co., Inc., Hous¬
ton, Tex.
July 24 filed 1,165,750 shares of
shares
United States Sulphur Corp.
/
Oct. 8 filed 1,500,000 shares of common stock
filed
sidiary and affiliated companies.
Stanley & Co., New York.
* United Merchants & Manufacturers, Inc.
Nov. 21 filed $500,000 of interests in company's Employees Stock Purchase Plan for
1958, together with 75,000
cumu¬
($100 per share).
Inc., New York, N. Y.
Nov.
,
stock (par $1).
expansion of pro¬
Price—At par
Underwriter—Reilly, Hoffman & Sweeney,
Suburban
common
Proceeds—For
Underwriter
Co., San Francisco, Calif.
preferred stock.
Worth, Tex.
2836
commo¬
&
construction, program.
Proceeds—For construction, payment of promissory note
ing capital, etc.
Business—Purchase and sale of
for
if Sovereign Resources, Inc.
Nov. 19 (letter of notification)
1,500 shares of 7%
ceeds
Office—St.
-
,
Southwestern States Telephone Co. (12/12-13)
Nov. 20 filed 160,000 shares of cumulative
preferred
stock. Price—At par ($5 per share). Proceeds—For work¬
dities.
-
40 shares of stock held
Oct.
—
Price—To be supplied by amendment. Proceeds—
bank loans, to repay all or part of an out¬
To reduce
stockholders
—Dean
•Ramapo Uranium Corp. (New York)
Aug. 13 filed 125,000 shares of common stock (par one
cent). Price—$5 per share. Proceeds—For exploration
and development of properties and completion of a ura¬
nium concentrating pilor mill. Office—295 Madison
Ave.,
New York 17, N. Y. Underwriter—None.
Offering
:
Dec.
Odessa. Tex.
Research
.
j
,
Lubbock, Tex. Underwriter—Sterling Securities Co., Inc.,
•
Mining Corp.
share. ' Proceeds—For
,
•
stock, $1.44 dividend convertible series (par $25). Price
—To be supplied by amendment.Proceeds—To
repay
Blyth & Co., Inc., New York.
postponed. V ;
per
•
Pyramid Mining & Metai Corp.
program
Price—25 tents
Price—To be supplied by amendment. Proceeds—To two
Ulrich Manufacturing Co. V
t !
selling stockholders. Underwriter—Merrill Lynch, Pierce,; (
Sept 24 filed $600,000 of 6% sinking fund debentures
Fenner & Beahe, New York.
Offering—Temporarily de¬
and 30,000 shares of class A common,stock, (par $1) to
layed.
' y .
*, "
....A
' Y.»j
' v.:.<.
be offered in units of.$500 of debentures and 25 shares of
Oct 24 (letter of notification) 236,000 shares of common
stock (par $1).' Price—$1.25 per share.
Proceeds—For
mining expenses. Office — 508 Great Plains Life Bldg.,
expansion
Uranium
stock (par one
land
acquisition, exploratory work, working capital, reserves,
and other corporate purposes. Underwriter—None. Al¬
fred E. Owens of Waterloo, la.,- is President.
mill).
54
'
stock
:
Pleasant Valley Oil & Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
Trans-America
Nov. 6 filed 3,000,000 shares of common
Under¬
*
1
(2357) ' 37
stockholders
St., Warwick, N. Y.
Underwriter—None.
Washington National Development Corp.
Oct. 2 (letter of notification) 50,000 shares of common
stock (par $1) of which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to be
offered to certain individuals under options. Proceeds—
For general
St.. N.
Office —?• 3612 Quesada
Underwriter—Wagner &
corporate purposes.
W., Washington, D. C.
Co., New York City.
Western
Nov. 4
stock.
Chrome
Inc.
(letter of notification) 300,000 shares of common;
Price—At par ($1 per share). Proceeds — For
mining expenses. Office — Suite 901-902 Continental
Bank Bldg., Salt Lake City, Utah.
Underwriter—Utah
General
•
Securities, Inc., Salt Lake City, Utah.
Western
Copperada Mining Corp.
(Canada)
notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For de¬
velopment and exploratory work, drilling costs and^sur¬
vey, and for working capital.
Office — 1205 Phillips
Square, Montreal, Canada
Underwriter—Jean R. Veditz
Co., Inc., New York. Offering—Expected at any time.
Aug. 30 (letter of
Continued
on
page
38
,
33
The Commercial and.
(2358)
Continued
from
Central
37
page
April 9 it
Illinois
Public
Service Co.
Falcon Seaboard
reported company plans to issue and sell
was
ir Westford Independent Telephone Co.
Nov. 18 (letter of notification) 454 shares of cumulative
loans
Oct.
$10,000,000 of 1st mtge. bonds. Proceeds—To reduqp bank
Price—At par ($100 per share).
preferred stock.
ceeds
—
equipment.
Lahti.
the
For
installation
and
Office—Williamsfield,
moving of
Ohio, c/o
new
determined
Margaret
Underwriter—None.
bid and ask
Nov. 15, 1957
on
Co.
Co.,
>tu
Inc.,
A'
'
New
i :
;•
Young (Donald W.)
Nov.
York.
!'
...
••
& Son, Inc.
~
three
Inc.
••
,
.
•
•
•
(12/2-5)
14
purchase
from
Co. Inc.;
bidders:
Cincinnati Gas & Electric
about
Halsey,f. Stuart
*
Co.
&
term
debt and for
working capital. Office—Stockholm,
Underwriter—Sherry Co., New York.
N. Y.
tive
Corp. (jointly); Mer¬
Lynch, Pierce, Fenner & Beane and Lehman Bros,
(jointly); Eastman Dillon, Union Securities & Co. and
White, Weld & Co. (jointly).
•
*
the
Prospective Offerings
American Telephone &
Nov. 20 it was announced
Telegraph Co.
(2/7)
convertible
amount
issue
an
of
debentures
approximately $720,000,000 of
the
on
of debentures for
basis
of
$100 principal
each nine shares
held.
scription rights are expected to be mailed on
Feb. 7, 1958 and the
subscription period will
Sub¬
about
or
until
run
March 12, 1958. Proceeds—To meet
demand for
telephone facilities. Underwriter—None.
a
future
later
struction program.
Underwriter—May be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Kuhn, Loeb &
Co., American Securities Corp.
and Wood, Struthers & Co.
(jointly); White, Weld & Co.
and Shields & Co.
(jointly); The First Boston Corp. and
Drexel & Co.
(jointly); Eastman Dillon, Union Securi¬
ties & Co. and
Smith, Barney & Co. (jointly); Lee HigCorp.; Blyth & Co., Inc.
(12/5) (12/11)
by the company at 2 Wall St..
New York 5, N.
Y., up to noon (EST) on Dec. 5 for
Purchase
it of $3,435,000
equipment trust
certificates. Probable bidders:
Halsey, Stuart & Co. Inc.;
?nior?on ?*?s' & Hutzler- Bids for an additional $3,435,•
Brooklyn Union
Nov. 25 it
3
™
or
are
May,
was
expected to be received
on
000
$35
announced that
$22,000,000 of first
company expects to issue
mortgage bonds next April
Proceeds—To repay bank loans and for con¬
Underwriter—To be determined
by
competitive bidding. Probable
bidders: Halsey, Stuart
rf on*',
Brothers; Blyth & Co., Inc., and
F. S.
Moseley & Co. (jointly); Merrill
Lynch, Pierce,
Fenner &
Beane; Harriman Ripley & Co. Inc. and The
First Boston
Corp. (jointly); White, Weld & Co.
California
20, Carl
Electric
C.
Power
Ernst,
Co.
President,
appears we will be back to market
of
u
ii
rs^
bank loans
year-"
and
said
more
that
"it
now
securities
soon
Proceeds—For repayment
for new
construction.
Oct.
of
22
first
it
was
reported
mortgage
company
bonds.
Underwriter
issue $4,500,000
—
To
be
deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc., The First
Boston Corp.; and Coffin
& Burr, Inc. and F. S.
Moseley & Co. (jointly). Bids—
Tentatively expected to be received in
January.
of
debentures
which
!!(!
4
;■
.
i:
Gas'Cor
•:
'
:
y
•
"
<■
7
*
Proceeds—To repay bank loans and for
con-rj
Underwriter—For bonds, to be de- >
program.
termined by competitive bidding.
Probable bidder's: Hal-!
Stuart & Co. Inc.; Lehman Brothers, Merrill Lynch, 7
Pierce, Fenner & Beane and Reinholdt & Gardner (jointsey,
could
be
ly)-
-•
-
!=?.
-
-
■
-
'
Long Island Lighting Co.
used
April
it
16
announced
plans to sell later {
this year $40,000,000 of .first
mortgage bonds, series J. h
Proceeds—To refund $12,000,000 of series C bonds due
y
Jan. 1, 1958 and for construction program.
Underwriter
was
company
.
—To
be
determined
by competitive bidding. Probable ;
Halsey, Stuart & Co. Inc.; The First Boston;
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
bidders:
★ Multnomah
con¬
panadian Fund, Ltd. i
Nov. 25 it was announced company has applied to SEC!
for
permission/to is.suq and sell iri the United States its
A commpn shares, Of which there are authorized
1,000,000 shares ,(pdr $1);and .10,000 shares outstanding.'":
Office—Vancouver, B. C., Canada.
1 y'
.
Colorado Fuel
Oct. 3 it
was
about
&
Nov. 4 it
000
of
Iron
class
Corp.;
reported company now plans to issue and
$25,000,000 first mortgage
Commonwealth
was
&
bonds
due
1977.
Co., New York.
Edison Co.
or
Norfolk & Western Ry.
Proceeds
be
—
For
to mature semiannually from (May 1, 1958 -to and in¬
cluding Nov.-T; 1972.-' Bids for the remaining $4,140,000
of certificates-of:the! same Issue (third instalment) are'
determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp;; Glore, Forgan & Co.
Bids—Tentatively expected
1958.
Registration
December.
•
to
Planned
—
be
received
for
about
of
Jan.
14,
middle
'
I
(1/9)
construction
Underwriter
Putnam
—
&
Darco
20.
y
50,000 shares for selling stockholders. Business
—Manufactures products for commercial and
military
Underwriter—William R. Staats &
Co., Los Angeles, Calif.
:
termined- by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co.
(jointly).
Eastern Utilities Associates
announced
of
company
25-year
proposes
collateral
to issue
trust
bonds.
For
advances to Blackstone Valley Gas &
Co., a subsidiary. Underwriter—To be deter¬
by competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; Kidder, Peabody & Co.: Blyth
mined
&
first
'
has
deferred'
(half of 4958 its plan to raise between:
early this fall.r No
decision':
'
bidders*!.Halsey, Stuart & Co. Inc.; The First1
Corp!; Glore; Forgan & Co.; Blyth & Co., Inc.
•
i
Northern
Nov.
the
25
of 456.813
Nalural
company
Gas
Co.
the proposed issuance
announced
Oddttionai shares of
stock (par $10),January to common stockholders'
basis;'of one new share for each eight shares
held. Proceeds!— Approximately $20,000,000 to
repay
] bank loans dnd: for construction program. Underwriter
on
be offered^late
common
in
the
■
|—None.;
:
'
Water/Service Co. ;
Bept. 26 it wa^ Tepjopted company to issue and sell in
Ohio
December an"i?sUe Of'$1,500,000 convertible-subordinated
debentures., 'Underwriter—McDonald &
,
Electric
sey,
7
—
Boston
,
April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For
any bonds to bte de¬
$3,750,000
any^
to
Eastern Gas & Fuel Associates
—
it
;
Probable
pany and
Proceeds
that
.*•
or securities convertible into common stock. Pro¬
For construction program. " Underwriter — For
bonds; id4 Be -determined by competitive bidding.
ceeds
was
was
"
I stock
reported registration is expected of ap¬
proximately 275,000 shares of common stock, of which
about 225,000 shares are to be sold for account of
com¬
sell
the
"•
has been made as to the form of the proposed financing,!but no consideration is being given to sale of common
Industries, Inc.
aircraft and missiles.
29
$8,000,000 and '$10,000,000
Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.
Registration
—Planned for Dec.
(EST) ^on Jan. 22.^
Co. Inc.; Salomon *
Illinois' Gas Co!
this ebmpany announced
Aug.
reported company plans to sell $30,000,mortgage bonds due 1988. Proceeds—For
program.
Northern
until
was
first
expected to be received up to noon
bidders: Halsey; Stuart &
Bros. & Hutzler!-
Probable
of
vr'"f'Vr
Connecticut Light & Power Co.
000
on
the
are
noon
plans to sell $50,000,-
debentures.
Underwriter—To
program.
(12/4)
(1/22)
expected 'to be received by this company up to(EST) on T)eci 4 for the purchase from it of $4,-'
140,000 equipment trust;certificates (second instalment)
Bids
(1/14)
announced company
mortgage bonds
construction
and
may
struction
on
Underwriter—None.
Proceeds—Together with other funds, for
April 15 it
Cambridge Electric Light Co.
stock
struction program. Underwriters—Lehman Brothers and
Allen & Co.. both of New York.
Sept. 23 it
Gas Co.
securities.
in
stockholders
common
(each unit expected to consist of a $25 debenture oi
interim note and five shares of $1 par common
stock).
Dec. 11.
struction program.
Nov.
issuance
Nov. 25 it
Baltimore & Ohio RR.
Bids will be received
plans
company
common
of
Coastal Transmission Corp.
July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,-
year
000 of certificates
basis.
shares
largely to acquire investments producing ordinary in¬
ais well as those with growth potentials.
announced that
the company will
probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
ginson
l-for-16
Underwriter—Allen
9,^ Bayard L. England, President,
this
additional
come
sell
Atlantic City Electric Co.
April
that
•'
Aug. 5 it was announced company plans to raise up to
$11,700,000 new' hnoiiey this year through sale of-new
City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the directors are giving consideration to the possible
about
new
announced
of 1958 to offer to its
450,000
about
company plans to offer to its
stockholders
summer
about
Podesta & Co., Chicago, 111.
also
was
"
Underwriter—To be determined by eompeti-!i
Laclede
Cincinnati Gas & Electric Co.
it
-;"A"
(2/13/58) *3
bidding.; Probable- bidders: Halsey, Stuart & Co.!
Feb. 13, 1958.
on
.
8
Michigan Electric Co.
Inc.; Harriman Ripley - & Co. Inc.; The First Bostott [
Corp.; Eastman -jptnop, • Union Securities & Co. Bids—<>
Tentatively expected to be received up to 11 a.m. (EST) •
Boston
rill
Nov.
Aircraft, Inc.
July 9 it was reported company plans to issue and sell
up to $12,500,000 common stock,
following spin-off by
California Eastern Aviation, Inc. of its
subsidiaries,
Land-Air, Inc. and Air Carrier Service Corp. into Air¬
craft, Inc., a new company. Underwriter—Cruttenden,
First
":
&
program.
Probable
The
Indiana
was announced company plans to issue and sell ,*
$25,000,000 of first mortgage bonds due '1988. Proceeds
—For reduction
of
bank loans and for construction:
$15,000,000 of first mortgage bonds.
Inc. and
Underwriter—Probably H. M. Payson & Co., Port!
Nov. 15 it
repay
Co.
its
to
it
land. Me. 4:
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co. and W. E. Hutton & Co. (jointly); Blyth
(letter of notification) $75,000 of 10-year 6%
Oct. 1, 1967, with common stock war¬
purchase 7,500 shares of 10-cent par common
stock at $1 per share. Price—$100
per unit of a $100
debenture and one warrant. Proceeds—To
repay short
(C. F,) Co., Waterville, Me.
>
ri
wa,s announced .company plans soon to offer., ;
common, stockholders
some
additional common"!
stock.
&
debentures due
|
Hathaway
June 24
Proceeds—
bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
To
yet been determined.
Gulf, Mobile & Ohio RR.
"»
*
8 company applied to the ICC for
permission to!
issue $28,343,800 -of 5%
income debentures to mature!'
Dec. 1,.2056 in exchange for the 283,438 shares of
out-.7r
standing $5 preferred 'stock (no par) on the basis
pjjU
$100 of debentures' for'each preferred share.
reported company plans to issue and sell
was
■«
Nov.
of
Probable
fS h
■:U
Proceeds — For construction!
Underwriters—Carl M. Loeb, Rhoades & Co.
and Merrill Lynch, Pierce, Fenner & Beane.
Salomon Bros. & Hutzler.
Nov. 8 it
S
Company; Columbus, O.
program.
aggregate of not exceeding $3,690,000 of
an
certificates.
*
shares fOr each eight shares
held.-Price—$207
Proceeds ---1: To increase capital and surplus.* *
new
share.
not
to noon
up
it
rants
to
share for each three-
Interstate Gas Co.
-fy Oil
May 3 it was announced company plans to issue some '7
additional first mortgage bonds, the amount of which baa
7
received
be
St., Chicago 6, 111.,
these
"
one new
Gulf
(12/4)
stalment of
Underwriter —
Statement effective
118,900
given ;
additional shares of
Nov.
(CST) on Dec. 11 for
$1,545,000 equipment trust
certiifcates to be dated Jan. 1, 1958 and to mature in 15
equal annual instalments. This constitutes the first in¬
purposes
■'*
be
★ First National Bank & Trust Co., Steubenville, O.
it
will
the
Underwriter—None.
p
stockholders will
18, 1957; rights to expire on v
6, 1957. ; Price—$21 per share. Proceeds—To in- u
crease capital and surplus.
Underwriter—None,
/-jl
^Chicago & North Western Ry. (12/11)
son
Wycotah Oil & Uranium, Inc., Denver, Colo.
July 29 filed 375,000 shares of common stock (par $1)
Price—$4 per share. Proceeds—For acquisition of prop¬
Oct. 24.
announced
Dec.
Bids will Le received by the company at 400 West Madi¬
all short term bank notes and for construction
program.
&
was
.
(N. Y.)
shares held oLrecord Oct.
common
being offered for subscription by common stock¬
holders of record Oct.
25, 1957 on the basis of one new
share for each three shares
held; rights to expire Nov. 22,
1957. Price—At par ($25 per share). Proceeds—To
repay
^nd for other corporate
it
the right to subscribe for
capital stock at the rate of
by the company at Rome 744,
Station Bldg., Chicago 6, 111., up to noon (CST)
on Dec. 4, for the purchase from it of $5,400,000
equip¬
ment trust certificates, series WW, to be dated Jan. 1,
1958 and to mature in 30 equal semi-annual installments
of $180,000 each, from July 1, 1958 to and including
Jan. 1, 1973. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
stock
Teden
12
Underwriter—The Ohio
Bids
White, Weld & Co. Bids—To be received up to 10 a.m.
(CST) on Dec. 5 at 231 So. La Salle St., Chicago 4, 111.
erty
Sept.
offering; of
Underwriter ./
.
Federation Bank & Trust Co.
Union
Bros. & Hutzler and Eastman Dillon, Union Securities &
Co. (jointly); Dean Witter & Co.; Lehman Brothers;
-
per
12
RR.
bidding. Probable bidders: Ifalsey, Stuart
Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Salomon
stock is expected.
Brothers, New York.
Chicago, Milwaukee, St. Paul & Pacific
Co.
Office—Woodbury, Conn.
common
&
Underwriters—To be determined by
Woodbury Telephone Co.
Sept. 23 (letter of notification) 3,533 shares of
Drilling; Corp.
that a secondary
reported
26 it was announced Bank is
offering first to its I"
stockholders the privilege of subscribing for 37,500 addiv
tional shares of common stock (par
$10) on the basis'oxF-
competitive
&
Thursday. November 28,1957
'
was announced company plans to sell
about
of first mortgage bonds sometime after the
turn of the year. Proceeds—To repay advances made by
Peoples Gas Light & Coke Co., the parent. Underwriters
—Probably Dillon, Read & Co. Inc. and Halsey, Stuart
Nov.
Wisconsin Public Service Corp. (12/5)
Nov. 5 filed $7,000,000 of first mortgage bonds due Dec.;
1, 1987.
Proceeds—For construction program and to
bank loans.
by competitive
$5,000,000
None.
was
—Lehman
ot
Chicago District Pipeline Co.
(estimated at
$6.81% per share). Proceeds—For working capital. Of¬
fice—First National Bldg., Tulsa, Okla.
Underwriter—
repay
Luiderwriter—lo
it
28
110,000 shares of
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane:(jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly)
Offering—Expected late in 1957.
Pro¬
dial
* White Eagle Oil Co.
Nov. 14
(letter of notification) a maximum of 3,200
shares of capital stock (par 10 cents). Price—Mean be¬
tween N. Y.
and for construction program,
Financial Chronicle ^:
Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook &Co.
(jointly).
Ohio.
Registration—Expected in
near
:^Ar Oklahoma Gas & Electric Co.
Co., Cleveland,;
future.
f
..
,
Nov. 18 itr Avas (reported company plans to raise about
'$20,000,000 nexf Spring, through sale of bonds and other
(securities. Underwriter—To be determined by competi-.
tive
biddihg.\ Probable bidders: (1) For bonds—Halsey,
Stuart &
Boston
Co. Inc.; Equitable Securities Corp.; The First
Corp.; Kuhn, Loeb & Co., Merrill Lynch, Pierce,'
Volume
186
Number 5694
.
.
The Commercial and Financial Chronicle
.
Fenner & Beane and
White, Weld & Co. (jointly); HarRipley & Co. Inc. and Eastman Dillon, Union
Securities & Co. (jointly). .(2) For preferred stock —
Underwriter—James IT. Price & Co., Inc., Coral Gables,
riman
Fla. .and New? York, N.
Y., handled previous public
offering of 500,000 shares of common stock at $3.25 per
share in July, 1956. .
.
e
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
& Co.
{jointly); The First Boston
Corp.; Lehman Bros.,
and Blyth & Co. Inc.
(jointly); Smith, Barney & Co.;
Harriman Ripley & Co.
Inc.; Kuhn, Loeb & Co. Any
offering of common stock may be made' to common
stockholders, with Merrill Lynch, Pierce, Fenner &
Beane underwriting.
'
!
*
—
Electric Co.
(1/21)
Oct. 16 directors authorized the sale of
$60,000,000 first
and, refunding mortgage bonds.
Proceeds
To retire
t
—
Seaboard Air Line RR.
bank loans^ and for construction program.
Underwriter
be determined
by competitive bidding. Probable
bidders: The First Boston
Corp. and Halsey, Stuart & Co.
Nov. 18 it
-—To
Inc, (jointly); Blyth & Co., Inc.
-Jan. 21, 1958.C
;• '
*;•••/'.'
Bids—To be received
"*/
was
1958 to
million
(equivalent to $211,000,000 and $263,000,000) through a
"rights" offering to stockholders.
Price
To be gov¬
erned by market conditions
prevailing at time of issue.
Proceeds—For capital expenditures. Underwriter—Mor¬
gan Stanley & Co. in U. S.
&
reported company plans to issue and sell
equipment trust certificates.
Probable bid¬
was
$5,445,000
ders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
on
Shell
•
Oct. 3 it
Pacific Gas & Electric Co. ?
^
■'
Nov. 4 it was announced
company plans, following bond
;sa1e about Jan.- 21, to offer a small amount-of common
Transport & Trading Co., Ltd.
was
announced company plans to offer to stock¬
holders early in 1958 between £ 40,000,000 and £ 55,000,000 additional capital stock
(equivalent to $112,000,000
stock, to keep the capital structure in reasonable balance.
and
Underwriter—Blyth & Co., Inc., San
conditions
$154,000,000).> Price — To be governed by market
prevailing at time of issue. Proceeds—For
capital expenditures.4 Underwriter—Morgan Grenfell &
Co., Ltd., London, England.
Francisco and New
York.,.
Public Service
Aug.
1
it
Electric
&
Gas Co.
company anticipates it will
in 1958 $25,000,000 of
preferred
sell in the Fall of 1957 or
stock./ Proceeds — For construction
Nov. 4 it
tional
Under-
program.
wrfter—May be Merrill Lynch, Pierce, Fenner & Beane,
'New York.^;, ' >v'
'•
f v
•
and
York.
ceeds—To
Walker,
one new
Riddle
Oct. 21 it
(par
held;
&
Dec. 11. Price—$45? per share. Pro¬
capital and surplus.-Underwriters—
*
/
/
announce^ company, plans to register with
the SEC an issue of new common
stock, the number of
shares and the price at which
they.-yvill- .be-offered not
;
Registration—Expected in No¬
J;
.
Proceeds—For working capital
terested
developed to
new-offer-
amount
of $500
million, this part of the overall
operation drew subscriptions of.
liiofe than $3.8 billion or almost
in adjusting their posi¬
against the year-end than in
taking on new commitments.
tions
So
only
it
is
two
and other
Investment
-
bankers
and
their
found them¬
selves in the enviable position of
having their shelves just about
bare
of
when
groups
unsold
the
Eisenhower's
earlier
securiti
new
latest
illness
struck
total.
not
surprising to find
offerings of
corporate
would
weeks ago
have
been
prior to
Reserve
situation
different,
the action
Federal
the
it
for
of the several
Regional
Banks
called
f fo
e
best
to
suggest
r
in
that
hold
Certainly,
slated
to
new
open bids
bonds. And
The
for
"sav¬
as
that
t
the
spite
of
eliminate
these operations,
be
can
it
in
to
s
to
hoped
for
minimum.
a
foregoing figures
of "padding" was
plenty
in order.
in
reducing their rediscount rates,
the market was dragging and a
goodly
portion %fy,^underwriting
firms' capital was tied
debt
securities
that
in
up
new
not
were
moving too readily.
."In
the
nature
interval,
however,
investment
of the
has•:/.undergone
the
market
far
reaching
The cut in the bank rate,
change.
a
while it did not of itself increase
the-
volume
of
banking credit
available, did signal a definite
change in the Reserve's attitude
toward
And
the money
market.
a
interests
that
vestors
the
to
attract
time,
did
a
situation
market
ing
cue.
yield of 4.95%
sufficient
to
to
seemed
buyers
quick
obtain
while
were
Whereas
they
in¬
"retake"
came
yields
were
in¬
prior
institutional
and
into
of
the
one
agreement
commitments
and
seek
terminating
letting
their
their
investment
mar¬
recent
sharp rever¬
have exhausted
sal, appears to
immediate investor
demand.
At
there has been some eas¬
perhaps flattening out is a
ing
or,
better term.
While
institutions
reluc¬
are
tant to buy and thus bid
prices up
against- themselves, neither are
they disposed to take the selling
side.
As a consequence the mar¬
ket has turned quite dull again.
to
seems
be
that
with the money managers having
decided
to
adopt
a
somewhat
liberal
attitude, the pros¬
is for lower investment
yields in the months ahead. But
more
pect
a
return to abnormally low yields
as in the cards.
is not viewed
Another Light Week
Precedent
rate
new
down
calls
issue
for
the
market
perceptibly
corpo¬
slow
to
through
the
own
level,
suddenly
found
buyers
rushing in to take the bonds off
their
its
any rate
available
syndicate which
must have considered
its
after
prevail¬
which proved fro be not for long.
More than
seasoned
Consensus
investment
quick to take their
even
Flattening Out
The
ket,
hands.
balance
other
of
the
reason,
it
that, from here
tional
it
11
investors
year.
should
on,
If
be
for
no
noted
major institu¬
will be
more
in¬
was
(Mo.)
reported company plans in the Spring
to issue and sell
$25,000,000 to $35,000,000 first mortgage
bonds.
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers and
Bear, Stearns & Co. (jointly);
bidding.
White, Weld & Co., Blyth & Co., Inc., Eastman Dillon,
Union Securities & Co. and Shields & Co.
(jointly); The
Corp.
First Boston
Valley Gas Co.
April 15 it was announced
company, a subsidiary ol
Valley Gas & Electric Co., plans to issue,
year, $4,000,000 of bonds, $1,100,000 of note#
and $900,000 of preferred stock to its
parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
proposes to dispose by negotiated sale the first three
Blackstone
within
one
securities mentioned
new
its
was
common
Associates its
the
latter
Gas
Co.,
parent)
the
it
is
in
this
paragraph.
also announced Blackstone plans to offei
stockholders (other than Eastern Utilities
and
$2,500,000
to
to
of
receive
stockholders
common
stock
of
payment
of
common
part
as
ol
Valley
certain
Blackstone properties.
Dealer-Manager—May be Kidder,
Peabody & Co., New York.
Washington Natural Gas Co.
Oct.
in
18
the
directors
debentures.
authorized
Proceeds—For
the
sale
of
$5,000,000
expansion program.
Un¬
derwriter—Blyth & Co., Inc., San Francisco and New
York.
,•
,
'
8, Kensey M. Robinson, President, stated that the
will come into the market early next year,
probably in January, with $30,000,000 of new public fi¬
company
nancing, mostly in bonds, but
&
include
may
some
deben¬
tures. Proceeds—For construction program. Underwriters
—Kidder, Peabody & Co., Blyth & Co., Inc., White, Weld
& Co. and Laurence M. Marks &
Co., all of New York.
Wisconsin
Oct. 17 it
Southern Gas Co., Inc.
reported company plans to offer to stock¬
14-day standby, an additional 16,566 shares
was
holders for
a
of
stock
common
on
l-for-7 basis.
a
plans may be revised and
filed.
Underwriters
The
a
However, financing
full registration
statement
Milwaukee
Co., Milwaukee,
Wis.; and Harley, Haydon & Co. and Bell & Farrell, Inc.,
both of Madison, Wis.
—
peake & Potomac Tel. of Maryland
will sell $30 million of debentures
is
$20 million of
allotments
classed
appears
constant
is
Union Electric Co.
Nov.
Power
Co.
Underwriter—To be determined
bidding.
Probable bidders: Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
block for bids.
aforementioned
Naturally this
scaled-down
"free-riding"
this week.
few
the
with institutions
So
stockholders.
competitive
Thursday Northern Natural Gas
Co. plans to sell, via negotiation,
$25,000,000 debentures, while Wis¬
consin Public Service Corp., has
$7,000,000 of bonds on the auction
ings" units being allotted 24% and
savings investors 10%.
the
A
*
times
sharply
President
of
news
1,000,000
on
.
eight
distributing
reported company plans to offer around
additional shares of common stock, first to
consequence on tap for next week.
On Tuesday Virginia Electric &
on
(Mo.)
was
Washington Water Power Co.
corporate purposes.
•
the
Dillon,
39
Oct.
;
future..
near
17-year 3%% bonds.
in
Eastman
.Engineering, Inc., Arcadia, Calif.
6, Harry; Oedekerk, Chairman of the Board, an¬
nounced corporation plans a public stock issue in the
iilgsngave a pretty good insight
changed situation. That
was especially true in the case of
Offered
(jointly);
Tuttfe
iirumthe
the new
Co.
Co., Cleveland, Ohio.
Sign .of the Times
;
The* response which
the". Treasury's latest
&
& Co.
Nov.
yet determined. The authorized common stock has been
increased from 7,500,000 to 15,000,000 shares.y Proceeds
-rTo finance route expansion and for working capital.
>'
Stearns
(jointly); Lehman Bros,
Transocean Corp. of California
May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of n€vr
working capital. .*.
;,
y
was
*
Bear,
vember.
& Waggoner/?The First Southwest Co.
Rupe & Son, all of Dallas, Texas.
Airlines, Inc.
For
Toledo Scale Co.
.
Austin
and Dallas
—
Sept. 26 it was reported that,. following merger with
Haughtori Elevator Co., Toledo Scale Co. plans to issue
some additional common stock.
Underwriter—McDonald
on
increase
Proceeds
Underwriter—To be determined
program.
Union Securities
•
Republic National Bank of Dallas
.Nov.'. 26. it;,was announced that bank is
offering to its
stockholders of record Nov. 25, 1957,-the right to sub¬
.$12).at the.rate of
rights will expire
12,210,000 shares.
& Co. and Dallas Securities Co.
Corp. and A. E. Ames & Co;, both of New
of capitab stock
share for each,,12-shares
announced company may sell some addi¬
stock in an amount not exceeding 4% of
by competitive bidding. Probable bidders: Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); The First Southwest Corp., Rauscher, Pierce
ering a proposal to raise between $30,000,000 and $50,additional funds this year.
Underwriters—The
223,125 additional shares
was
construction
000,000
scribe for
it
common
to
common
present outstanding
Quebec Hydro-Electric Commission
Oct. 7 it was reported that the
company may be consid¬
First Boston
11
April 15 it
Texas Utilities Co.
announced
was
Union Electric Co.
Nov.
by
announced company plans early in
between
Fls.800
million
and
Fls.1,000
raise
;
Gas
Royal Dutch Petroleum Co.
Oct. 3 it
r
Pacific
(2359)
following Monday, Chesa¬
Oil Refining
$20 million of
City of Montreal
opens bids for $18 million of de¬
bentures the following day and
■except for a few smaller pros¬
pects that just about closes out
and
is
Commonwealth
due
to
market
debentures.
The
the current year
market.
in the new issue
40
'•
New Booklet
By ROBERT R. RICH
The
Boston Fund Sold Stocks;
your
Bought Bonds Before
Boston
^aUond
reports
Income Seuei/
late summer and fall decline in the stock market.
The fund's report to shareholders for the quarter ended Oct.
31, 1957 states in part: "Over the past two years, as stock prices
continued to move upward in spite of a leveling out of business
WRITE FOR
FREE INFORMATION
FOLDER AND
PROSPECTUS TO
DEALER OR
profits in some areas, our fund has been a substantial seller of
equity securities on balance. The net reduction in common stock¬
holdings has amounted to something over $24,000,000, which has
had the effect of reducing the portion of our account invested in
common stocks from about 73% to approximately 58%.
YOUR INVESTMENT
NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930
Fund, one of the largest mutual funds in the country,
it reduced its common stockholdings substantially
that
,
"In
5, N. Y.
Broadway, New York
common
which
to
addition, during this period, approximately $6,500,000 of
stocks were sold and replaced with other stock issues
appeared, in the light of the unfolding business situation,
priced more realistically in relation to earnings prospects.
"During the early part of our selling program, the money
which went into the defensive part of the account was held largely
in short-term obligations or in convertible issues which seemed
to hold unusual promise. As a result, even though an increasing
interest rate pattern caused a fairly substantial decline in the
be
backlog securities gave a very good
account of themselves. During recent months, as the bond market
appeared to be approaching an attractive level and the threat of
further interest rate increases seemed to have been largely dis¬
general bond market,
Consecutive
Quarterly
Distribution
place have quite sizably increased the income account of the
fund. Dividends declared so far during our fiscal year are above
last
share from investment 4
income and
18 cents per
fr|m capital gains
December 24,
ord December
are
year's and
our
current rate of earnings has improved
that of the last quarter."
over
share
,
even
>
report shows that of the fund's investments on Oct. 31,
bonds represented 25.7%, preferred stocks 15.7%
and common
stocks 58.6%.
Total net assets on that date were $135,428,585,
rec¬
5, 1957.
amounting to $14.57
per
Adjusting for the capital
share.
which
Securities
The investment company,
the National
of mutual funds,
sponsors
Series
a
gains
stresses
"few well chosen
steps now may result in the sav¬
ing of money which would other¬
wise be lost." The publication out¬
lines of the
significant role which
covered are the dividend exclusion
received
dividends
and
credit,
short term trusts and the charita¬
ble
■
Puritan Fund
615 RUSS BLDG., SAN
FRANCISCO
the
Standard
9.9%
for
same
cents
and
per
Poor's
500
Stock
Average
12 months.
over
the
r-'V
Interested
In
the
American Fund
ATOMIC
quarter ended Oct. 31, 1957,
Puritan Fund, Inc., a mutual fund
with primary emphasis on income,
reported 9.1% increase in total net
of $31,174,950 as compared
on Oct. 31, 1956.
assets
with $28,508,533
outstand¬
ing and shareholders reached
•
i
We will be glad to send you a free
prospectus describing Atomic
Development Mutual Fund, Inc. This
more
than 75
holdings of
stocks selected from among those
companies active in the atomic
field with the
objective of possible
growth in principal and income.
Atomic
Development Securities Co., Inc. Dept C
1033 THIRTIETH STREET, N. W.
WASHINGTON 7, D. C.
fUMD
the
fund's
manage¬
(1) common stock prices
have now gone a long way towards
discounting the adverse factors in
the
near-term
outlook
noted
at
the
High
4,405,807
a
year
and
ago
number
ter
included
fornia
Net
Increases
asset
value
for
each
share
outstanding at Oct. 31 j 1957 was
$7.15 as compared with the per
share figure of $8.55 on the smaller
number
Capital
the
year
aggregated 73 cents
Bankers
were
Trust, Cali¬
also
made
in
the
fund's holdings of Anaconda, Arm-
Steel,
per
eo
Major
Five
total
year
ended Oct. 31,
assets
port.
your
Investment Dealer
&
or
HOWARD, Incorporated
24 Federal St., Boston, Mass.
bonds
and
preferred
largest
common
stock
fund1 began
operations
instance,
in
J933.
assuming
all
divi¬
reinvested and
were
$38,586
on
Dec.
1956.
$10,000 invested Jan. 1,1942 would
have been worth $106,668 on
Dec. 31, 1956.
$10,000 invested Jan. 1,1937 would
have been worth $71,297 <j>n Dec,
31; 1956. •
1
J
Any shareholder who had in¬
vested $10,000 in Fundamental In¬
vestors 24
years ago, when the
fund began operations on Jan. 3,
1933, reinvesting alL income divi¬
dends and taking capital gain dis¬
tributions
in
additional
shares,
could
year
the
on
his
certifi¬
day
of this
in
second
for $18.9,536.
The
for
cashed
have
cates
shows
results
ten-year period
in the
"Fact
every
Book"
hid¬
were:
Railroad.
Dividend of nine cents per share
from investment income
by the fund
on
was paid
Oct. 25, 1957. Same
amount
was paid
a year ago.
On
Sept. 3, 1957, the fund also made
as
sults in periods of various lengths,
from 24 years to one year. •
The figures throughout the book
.
impressive, as are those sup¬
plied by Long Company statisti¬
are
cians to the effect that
B.
volume
a
and
ended
the
year
with
9% cash and governments posi¬
tion,
as
earlier.
compared with 12%
a year
Sloan
CITY, N. J.—Elizabeth
will
become
a
Steel.
DENVER,
Anderson
have
Mountain
According to Mr. Lovelace, it is poration,
Fund
limited
partner in Sloan, Rodetsky & Co.,
26
Journal
Square,
the New York Stock
members of
Exchange, on
ORGANIZED 1931
Dec. 5.
Coughlin Adds to Staff
(Special to The Financial Chronicle)
DENVER,
Colo.
—
F.
Donald
Dunn has been added to the staff
of
Coughlin & Company, Inc., Se¬
curity Building, members of the
Midwest Stock Exchange.
and
Colo.
—
Everett
Arthur A.
become
States
Denver
R.
Ander¬
affiliated
with
Securities
Cor¬
Club
L
Building.
National Distributor
Coffin & Burr
With Walter Co.
(Special to The Financial Chronicle)
son
ENGLAND
W
Sloan;, Rodetsky Admit
Mt. States Adds Two
the subsequent decline
prices, the fund purchased
selected stock issues in substantial
associate manager.
JERSEY
during the period
elimiration of holdings
Bethlehem
On
in stock
EATON
following the market
decline last February, to a high of
20% in July, according to the re¬
Prospectuses available from
Investors
history of the fund, side-by-side
American Chicle, Col¬ with reminders of the economic
gate-Palmolive, Family Finance, and historical background prevail¬
Kelsey-Hayes, Seaboard Airline ing at the time. It also shows re¬
in Commonwealth
Edison, Douglas
the fund increased its hold¬ Aircraft,
St.
Regis
Paper,
and
South American Gold & Platinum;
ings of cash and short-term gov¬
reductions
of
ernments from a low of 7%
of and
holdings
in
'e°ts
Fundamental
different periods since the
sales
included
During the
c«
in
stocks; 69.6% in common stocks;
and 1.9% in cash and receivables.
1957
te<*
shares'of
for 38
Packing,
Libbey-O wen s-Ford,
Reyonier,
Richfield
Oil,
Royal
of shares a year earlier. Dutch
Petroleum, and Wgstinghouse Electric.
gain distributions during
share.
stocks.
14,600
11,900 in same period.
On Oct. 31, 1957, 28.5% of Puri¬
tan
Fund, Inc., assets were in¬
Continental In¬
on the average number of shares
surance, Fibreboard Paper
outstanding
(5,466,983), for the Froducts, Inland Steel, Interna¬
previous year, Mr. Lovelace said. tional Nickel, and Parke-Davis.
h
big "Fact1 Book"
fullT disclosure of results
stantial
compared with $1,447,337,
equivalent to 26.5 cents per share
erow,Joking POs
lnc°P'«!c®??s,l»e
,
a minimum
beginning of the year, (2) sub¬
a
distribution of six
cents
per of
18326
separate
calculations
progress has been made
share from net capital gains real¬ were
required in the preparation
Net income of American Mutual in the readjustments in the econ¬
ized in the fiscal year ended
July of the tables included in Funda¬
Fund, Inc. reached a new high of omy which are necessary to create
31, 1957.
•
mental's "Fact Book."
v
$2,044,948 in the fiscal year ended a sound foundation for the re¬
Oct. 31, 1957, and total net assets sumption of the upward trend in
and
stock
increased to $63,768,099 from $58,- business
prices,
(3) Three With
Joins Goodbody Co.
Smith, La Hue
652,651 at the beginning of the many common stocks have become
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
relation to
year, Jonathan B. Lovelace, Presi¬ reasonably priced in
ST. PAUL, Minn.— Alfred C.
DETROIT, Mich. — Harry N.
dent, stated in his annual report to near-term earnings probabilities
shareholders. The report also re¬ and quite attractive for the long Gruendemann, Roland W. Kranz Barnes, Jr. is with Goodbody &
Co., Penobscot Building.
vealed that the number of share¬ term, and (4) other buying oppor¬ and Francis E. Malia have joined
holders had increased to 23,506 tunities will be presented during the staff of Smith, La Hue & Co.,
from 15,957 at Oct. 31, 1956, and the remaining period of readjust¬ Pioneer Building.
McDonnell Adds to Staff
This view is reflected in
shares outstanding had increased ment.
(Special to The Financial Chronicle)
the company's increased holdings
to 8,921,330 from 6,857,155.
New Hentz Branch
of common stocks, in the selec¬
DETROIT,
Mich. — Fred N.
American Mutual's net invest¬
tion of stocks owned, and in the
MIAMI BEACH, Fla.—H. Hentz Parker has become associated with
ment income of $2,044,948 in the
& Co. has opened a branch office McDonnell & Co., Buhl Building.
govern¬
latest fiscal year was equivalent proportion of cash and
ments held at Oct. 31, 1957.
at 740 Forty-first Street under the
to
25.6 cents
per
share on the
New
names
appearing in the management of Benjamin K.
average number
of shares out¬
standing
(7,977,900)
during the portfolio during the fourth quar¬ Schwedel, with Willard Marchancl
At New
year, as
f4ro/v
new
highs. Number of shares outstand¬
ing increased to 5,690,665 from
ment that
Net In come
ENERGY?
of
view
Fundamental's
gives
31,
In
ings
'
Policy wenj into
effect, mutual funds Were allowed
to give complete investment .re¬
sults for only the latest ten years.
have been worth
Assets Gain
vested
of 69
<
5, 1957 when the
Statement of
new
I
*
Prior to Nov.
.
of shareholders increased to
The decrease
of Fundamental In¬
Inc.
$10,000 invested Jan. 1, 1947 would
from
per
vestors,
capital
gains distributions were taken in
shares:,usv':-\ 4), > - v.;".*.""
>v(
share compared with $16.07 on Oct. 31 of last year,
when net assets were $142,742,567.
During the 12 months the
number of shares outstanding increased from 8,885,244 to 9,298,108.
$15.38
of the record
dends
distribution of 81 cents per share last Feb. 28, this is equivalent to
Secretary
one of
major productions under
the SEC's amended "Statement of
Policy" regulations.
The book delves into all phases
the first
For
remainder.
share after adjustment for the
capital gains distribution amounts to 4.5%, reflecting lower secu¬
rities prices in recent months.
This compares with a decline of
GEORGE W. FULK,
issued
during practically every period of
gifts can play in tax planning and
the fund's history now permissible
particularly the opportunities pre¬
under the amended Statement of
sented
by gifts to minors.
Also
Policy.
{ • i;
featured is a discussion of how the
The study shows results of an
capital gains tax can favor the in¬
assumed investment of $10,0t0 in
dividual
taxpayer.
Other topics
Both number of shares
The
payable
1957, to stock of
equally important to note that the changes which have
"It is
taken
INVESTMENT COMPANY
8 cents per
our
sipated, longer-term bonds have been purchased at what we feel
will prove in the years ahead to have been very attractive prices.
CmmueA
highlighted in "How to Make
Advantages Count" pub¬
lished by National Securities
&
Research Corporation.
^
the theme that
'Fact
statistic-studded
new
reviewing by Hugo W. Long & Co., is
of
importance
tax position before year-end
Your Tax
to the
prior
of
A
Book for Investment
is
Market Break
fund has
Long Issues
Urged
Tax Position Now
FUND
Thursday, November 28,1957
-t
To Review
Mutual Funds
INVESTMENT
...
1
Investors
A MUTUAL
120
Chroniclf
The Commercial and Financial
(2C60)
Incorporated
Founded 1898
(Special to The Financial Chronicle)
DENVER,
Hughes
is
Colo.
now
—
with
Robert
Walter
W.
Company, F i r s t National Bank
Building. He was formerly with
Amos C. Sudler & Co.
BOSTON
&
NEW YORK
HARTFORD
PORTLAND
HARRISBURG
BANGOR
Volume
186
Number 5694
.
.The Commercial and Financial Chronicle
.
(2361)
Continued from page 5
WHOLESALE PRICES
B.L.S. ALL
7
*
,
1802-1957
COMMODITIES
1926 *100
* '
" ~
Continued
'
'
peak still ahead?
lating and,
on
How shall you relatively rate the forces stimu¬
the other hand, those retarding, effective inflation?
*
M
4
i
}
•
'
'
-
The
•
.
.
'
'
■
.
,
i
Stimuli
-f'lri5 the first "pro" category, that is, furthering inflation, we
might list the following:
.
N
1
(1) The moaern acceptance of the mandate politically moti¬
vated, to preserve the nation's activity through full employment
policy and government interventionism.
>
>
s,
.
NAPOLEONIC
WORLD
WANS
WAN M
-
,*
(2) Labor union strength with its impact on spiraling prices
along with wage increases and fringe benefits; and pressure by
other politically strong groups.
,
•
(3) Increasing segments of the population getting on the infla¬
tion escalator througn subsidies and
otherwise, and liking it. That
is, liking it for themselves.
nr
'
(4) The national defense needs; with the seemingly permanent
Cold War and international crises—via Sputnik and otherwise. >
!
?
in
(5) The pervasive popularity of, and exhilaration from,
prices.
V\
;•
/
; ■.
Antidotes
,
;
a
rise
.
1
Now for
some
Inflation
to
of the antidotes.
arti-inflationary category,
In the de-flationary, or at least
list the following:
we can
j t:
(i) The nation's great productive capacity, especially in peace¬
time, with overproduction particularly recurrent in some industries,
textiles.
as
'
v. -
.
;
'
I
(2) Recognition of expansion
as a process
wholly distinct from
inflation..
(3) Uncertainties regarding government guarantees of activity
pump-priming; as to their speed as well as effective-
in the way of
!
ness.
(4) The uncertainty, historically demonstrated, of
•r'i
effect between monetary
(5) Income
a
cause
and
rise in prices.
taxatiorj.
Two
.»
Above
.expansion and
Over-Riding Questions
such cross-currents,
these two major question persis¬
tently stand out:
(1) Do the guarantees of present day government interven¬
tionism, active
one-way
and
potential, actually constitute
a
new
era
of
inflation?
7'
(2) Does the $38 billion defense bill establish an unassailable
bulwark? On the other hand, might it in some way—some time—
disappear through disarmament agreements or otherwise; or per¬
haps merely constitute a prop insuring the present rate of activity
without raising it?
' ;
~
■,
v
Two-Way
Street
Now for the historical record!
In actual practice, the quanti¬
itself, as reflected in the price
level, have never traveled a one-way street, over either the long
or short term.
Over the long term, as is shown on the accompany¬
ing chart, only the incidence of successive war periods have coun¬
tered the downward pressure on the price level.
J •
tative manifestations
,4
{
of
inflation
^
And
those
of
us
blandly taking for granted the
constancy
of inflation—of the "creeping" or other variety—should also realize
that after the 1920 price peak that followed the First World War,
it took 21 years, after 1920, and another World War until
level reattained that peak from the intervening decline.
the price
In other
words, not until 1946 did we get back up to the 1921 level. Some
commodities, despite the long-term inflation, are still priced below
1920 and evep below 1937-38.
Midst France's great inflation, too, there were many drastic
intervening price falls, namely monetary appreciation in 1920-22
and in 1930 to 1933. Similarly eyen during Germany's inflationary
holocaust after the First World War, there was a de-flationary 50%
rise in the mark's
gold value from 1920 to 1922.
fully realize the danger of taking it for granted that
always look like the present. In the 1920's we
told that we would never have another depression. In the
Let
the
us
future
were
on the other hand, we were told that the economy would
pull itself out of stagnation without government help. And
1930's,
hever
now,
never
each
will
in the 1950's, we are told that the wage-price spiral will
stop spinning and that inflation will go on forever. Curiously,
first two forecasts I was articulated and expressed in
of the
its present
form very near to the very moment that it was proved
and the same fate very well could befall the third forecast,
that is, the present inflation expectation. The truth of the matter
is that our economy is always changing and that no trend can
continue indefinitely. The danger lies not in a reversal but in the
excesses of optimism
or pessimism, which result from assuming
yyrong,
that "this time there will be
no
reversal.
Inflation-Market
Divergence
Compounding the investor's difficulties is the further unpre¬
dictability of stock price movements. The long worldwide record
shows continued absence of correlation
between the stock market
general price level. In the First World War period, 1915
1920, in the United States the cost of living rose 107%, but
industrial stocks at the same time were up by only 33%. Further¬
and the
to
more, there were declines in many stock groups; utilities down
30%, railroads 24%, lead and zinc issues 62%, and paper down 47%.
In
France
in
1948
and
1949,
in contrast to the
rise in the
general price level, the stock market encountered 25%
declines
in each year.
The
greatest stock market boom in our history, 1926-29, oc¬
curred midst stable to falling
U. S. from 1946 to
commodity prices. Converserly, in the
1949, while the price level was going up midst
booming business, the Dow Jones Industrial Stock Average never¬
theless declined by 15%, net. In the interval from February 1946 to
February 1951: on the one hand the cost of living rose 42%, but the
Dow
Jones
Industrial
Average
gained FRASER
Digitized for only 7%. Thus, stocks
rose
merely 27%,
and
utilities
again failed to serve as an adequate
CIVIL
WAN
from page 2
41
42
The Commercial and Financial Chronicle..:
(2362)
hasten to point out that the pres¬
chasing executives. Deliveries are
good, and this makes inventory
ent
control easier.
ther
No Business
Upturn in 4th Quarter Expected
adequate
supply" and that previous predictions regarding fourth-quarter
business upturn have failed to materialize. They find produc¬
tion and new order positions remain at October level, inflation
is slowing up, and expect wage increases in 1958 will be less
Purchasing agents
From
the November reports of
prise the N.A.P.A. Business Sur¬
Committee, whose Chairman
vey
is Chester F.
Ogden,
Vice-Presi¬
The Detroit Edison Com¬
pany, Detroit, Michigan, it is evi¬
dent that earlier predictions that
fourth-quarter business might
snap
out of last Summer's dol¬
dent,
drums
rialize.
so
Production and
new
order
positions are practically un¬
changed from October. Production
is better say 20%, while 29% re¬
port it is worse. New orders are
reported as up by 24% and lower
by 30%. For the first time since
the beginning of World War II,
purchasing executives state that
all
materials
in
are
adequate
Purchasing
executives
that the present slow-up
expect
in the
revised, raw
inventories quickly fol¬
material
-
low suit.
There is
desire
no
stocks, but a great
the need for cutting
to
Generally,
downward.
Committee
members
with
their present inventory situation.
however,
that
state
change their forward buying poli-1
cies on production or MRO items.
On capital goods, some willingness
to extend for longer periods vis
noticed.
breakdown
presented
played
an
Commodity Prices
Prices
and
continue
under
bigger
will be
increases
made.
Continued
material
in
weaknesses
raw
dominate
markets
the
picture. The
prices of manufactured items are
generally moving sidewise and,
despite the fact that our members
price
commodity
for
some
increase
labor
in
1958, there is little in¬
clination on their part to buy now
in
avoid
possible
higher
trend of employment in their com¬
along
pass
increased
Only 17%
panies.
While 74%
or
say
so
,
there has been no
eliminated
more
levels, but
a
their
inventory
few are making fur-
entirely,
Skilled
again reported to be
are
plentiful than jobs.
With
\
"
.
adequacy
present
practically all materials
readily available is reflected
planning of pur¬
'/ .j
...
Paper (car¬
bags, ball
electrical equip¬
ment, and automobiles.
J
are:
some
.
iron,
coal,
tin,
.In
time: since
„
there
mercury
chloride.
supply
short
first
,;^crap
are:
rubber,
aluminum
and
.
downside
'the
On
For
f
the
Wai
II,
-
are:
World
f
,
not
enough Commttee
reporting any .iteivTn
are
members
short supply to be statistically sig¬
nificant.
Even most nickel lasers
that they now
able1 to ge
all
need.
•
■■
'/
•
b
.
•
.
Mouth
Days
6
33
November—
90
fiO
30
Days
<
Dozier
I Year
Days
.
:
Production Materials.
..
26
23
5
4
14
21
5
—
.43
11
,33
38
26
MRO Supplies ..j—
Capital Expenditures-
•42
24
__
*
....
3
r
v.
Investment
MRO
j
Frank R.
—
William
and
Orudis
are
,
with Corey-Nelson
affiliated
now
5
18
38
DENVER, Colo,
■
(i Months to
/
Sherman!
Co., .1575
50
Joins E. A. Hanifen
Supplies
4
20
("Special to The Financial Chronicle)
2
V.
6
:
14
—
•
8
\
8
•
44
26
-
Colo. — Mrs. Mariqn
joined the staff of
Hanifen & Company/Secu¬
DENVER,
'
Capital Expenditures.
-
Jones
N.
A.
E.
important role in the rise
has
rity Building.
DIVIDEND NOTICES
DIVIDEND NOTICES
DIVIDEND
14 3rd
GEORGE W. HELME COMPANY
A
quarterly dividend of $0.00
per share in cash lias been
the
enjoyment of life, achieve national security—
these things have come largely from ideas which
observation, measurement and other laboratory arts
declared
the
on
9
Of
November
43% cents
and
Common
payable Janu¬
*0,
Y.
N.
of
cents
40
share
per
the
on
Stock,
plus an extra l€c per share
Stock, were declared, payable Jan¬
the
stockholders of record at
business December 13, 1957,
2,
close of
1958,
to
P.
1, 1958, to stockholders of
ary
York
Common
uary
Corporation,
New
1957, a quarterly dividend
share on the Preferred Stock,
27.
per
dividend
a
Common
on
Plaza.
Rockefeller
On
.Stock, of C. I. T. Financial
and machines
J.
Secretary
NEUMANN,
=*=
record at the close of business
"Our confidence in the future rests in no small
prospects for the continued and accel¬
—
The National
erated advancement of science."
December 10,1957. The trans¬
■h
fer books'will not close. Checks
FINANCIAL
will be
mailed./'
CORPORATION
C.
Science Foundation.
Allegheny Mum Steel Corporation
John Kuiin,
Pittsburgh,
Peiuu.
Treusurer
At
"Our confidence in
the future" must
also rest
the prospects for the type of social, political
philosophy and rules of conduct that
have made it possible for us in the past to utilize
our knowledge and our energy to the greatest ad¬
vantage—-something which apparently we can not
take for granted.
November 27, 195?.
/
.
'
of
J
of
meeting
a
the
Board of
Directors
Allegheny Ludlum Steel Corporation held
today, November 21.
1957,
a
upon
dividend otfifty eents ($0,50))
and economic
per
share
the
Common
declared ,onj
was
Stock
the
of
Corporation, payable Decem¬
ber
1957
21,
Stockholders
»••••#••••
the
•
•
•r»
•
•
•
•
•
•
•
••••
close
business
of
••••••#
S.
.
to
of
•
Common
A.
at
record
December
on
1957.
2,
McCASKEY,
JR.
Secretary
.
DIVIDEND NOTICES
'
Corey-Nelson Adds 1 ;
J
/Special to The Financial unaonicle)
-Per Cent Reporting—
States from frontier land to world
have developed into useful methods
at home and abroad.
Changes
multiwall
bearings,
November, see little reason to
in the inventory
upside
and
state that they are
in
supply situation of all items,
purchasing executives ..again,;' in
the
the
The fact
are
<
.
Policy
Buying
Inventories
Hand to
with
.
workers
change, 9% say that, overall, they
are paying less for the materials
their companies use.
Indeed, the growth of our scientific effort
parallels the growth of our strength as a nation.
The physical means to conquer wilderness, control
natural forces, increase the length and, hopefully,
on
narrative
past
,
Commodity
the
On
tons
workers,
reporting in October, and
26% in September. Furthermore,
there
are
many
who state that
overtime hours are being reduced
35%
our
prices
purchasing executives are
month, 41% report
- as
compared to
This
fewer
reporting members say they
are
having to pay more for the
items they buy.
Not since 1954,
have so few reported increases.
of
later.
satisfied
downward
the
finding it
costs to their customers.
believe
in
are
manufacturers
to
Purchasing executives tell of a
continuation
pressure
power.
measure
than
Specific
Employment
difficult
"Confidence in the Future"
United
as
time and extra shifts.
Production Materials.
''Science has
,
"Buying Policy" is
it may be more easily
presentations.
October—
of the
j
j
statistical
a
on
understood
they are satisfied
>
-
.
Starting this month,
production schedules are
as
revised
Employment is again lower, with
correspnding reductions in over¬
granted in 1958. However,
predict that the amount will
be less than in 1957, 27% think it
will be the same, and only 2%
to
them,
are
will be
rates
As pro¬
accurate.
more
71%
Most
supply.
alertness
duction schedules
question for this month, most be¬
lieve
that some wage increases
look
increase
to
inflation spiral will continue into
1958.
In answer to our special
far have failed to mate¬
supply
control
material
1
easier and
than this year.
purchasing executives, who com¬
adequate
members
situation makes inventory
report "all materials are in
now
Committee
cuts.
Thursday, November 28,1957
CITIES SERVICE COMPANY
Dividend Notice
&
declared
share
on
of Cities Service Company has
quarterly dividend of sixty cents ($.60) per
its Common stock, payable December
16, 1957,
(brponr/i'on
a
DIVIDEND No. 92
to stockholders of record at the close of business November
29, 1957. The board also declared
stock dividend
a
of
dividend of seventeen and one-
A
two per cent (2%) on the
presently outstanding shares
payable January 23, 1958, to stockholders of record at
half
been
standing
ERLE
G.
CHRISTIAN,
Secretary
'
(17'/2c)
cents
today
the close of business November 29, 1957.
.
common
BAKING
COMPANY
December 30,
record at the
December 6,1957.
A. R. BERGEN,
<
.
-
November 25,
has
the out¬
stock of this Cor¬
on
957, to stockholders of
close of business on
shore
per
declared
poration, payable on
1
CONTINENTAL
SQWENTS
COMMERCIAL
The Board of Directors
.
Sec",fc"*
1957.
Preferred Dividend No. 76
The Board of Directors has declared this
of
$1,371/2
Per
share
on
day
a
quarterly dividend
the outstanding $5.70 dividend Preferred
Stock, payable January 1, 1958, to stockholders of record at the
E.I.DU P0NTDENEM0URS&C0MPANY
close of business December 6, 1957.
<mm)
Common Dividend No. 51
The Board of Directors has declared this,
dividend, for the fourth quarter of the
on
the outstanding Common
year
day
a
regular quarterly
1957, of 50d
per
holders
of
stock
the close of business-
at
record
of
Del.,
The Board of
Directors has declared this
day
such
December 6, 1957.
|
be closed.
record
the
HOSTESS
CAKE
14,
the
at
10,
January
25, 1958, to stockholders
the
for
1957, to
close
of
close
of
business
1958; also" $2.00
Common
dividend
TREA6URER
of
Preferred Stock—$3.50 Series, both pay¬
on
WILLIAM FISHER
dividends
quarterly
$1.12'/2 a share on the Preferred Stock
.-$4.50 Series and 871/21 a share on the
of
not
regular
able January
The stock transfer books will
November 13, 1957
Wilmington,
share
Stock, payable December 26, 1957, to
Stock
1957,
as
the
payable
on
a share
year-end
December
stockholders of record at
business
on
November 25,
1957.
November 20, 1957
P. S. du pont, 3r», Secretary
Volume 136
Number 5694
.
.
.
The Commercial and Financial Chronicle
DIVIDEND NOTICES
<2363)
DIVIDEND NOTICES
DIVIDEND NOTICES
J. I. Case
ianaconda
'
dividend
;
198
no.
*'"
•"
t
:
dividend
oJF Seventy-five Cents ($.751
per share on its capital stock
of the par value of $50 per /
share, payable December 23, /
...
:
•''
*
v
close
action
L.
December
1957,
/
COAL COMPANY
at a
meeting held today, declared
able
on
record
2,
M
INC.
.
Quarterly d i vidends
I E
HACKNEY, Treasurer
30#
of
IMERCK
WJ the
K
25 Broadway, New York 4, N. Y.
share
a
share
a
on
stock,
common
87%#
$1.00
stock, and
the
Vice-President
a
share
Richmond, Va.
A
on
dividend of
the- .close
at
of [ business
value 5 A per cent
per
share
on
the
a
December
on
1957.
Anderson,
Secretary
••
stock of
common
of seventy-five cents
on
the capital stock of
payable January 15,1958, to share¬
holders of record Dec. 6, 1957.
Emery n. Leonard
Secretary and Treasurer
Boston, Mass., November 18,1957
10,1957.
STOCK
COMMON
regular quarterly dividend of 37}Ac per
Common
Stock
December
20, 1957
record
the
payable
of
at
1957.
business December 10,
8
November
share
this Company has been declared,
YALE &TOWNE
share has been declared on the
stockholders
Carl M.
regular quarterly dividend of 256
the
6,
dividend
1957
December
business
A
20,
stockholders of
record at the close of
CONTROLS
MR.
23, 1957, to stock¬
business
Tlw? Hoard of Directors lias declared
on
(§)
stock has
common
holders of record at the close
of
Stock, payable
to
also been declared, payable on
December
Preferred
vertible
on
of 20#
Con¬
Cumulative
v.
Quarterly Dividend
A
December
1957. ?.
extra dividend
v
NOTICE
$0.34375
share has been de¬
on the $25.0Q
par
January 2,
Consecutive
quarterly
regular
per
234th
STOCK
PREFERRED
clared
on
COMPANY
on
$4.00, convertible second
December 6,
this
Secretary
CONTROLS COMPANY
1958^ to stockholders of record
share
&
ROBERTSHAW- FULTON
clared, payable
per
to
close
of
Declares 279th Dividend
The transfer
books will not be closed.
37V2<f
,' -i
walter h. steffler
26, 1957
dividend No.279
November 20, 1957
the close
business
of
of thirty-seven
ait
of record
and one-half cents
De¬
shore
per
cember 16, 1957.
declared
R. L.
Share
a
On Nov. 20,1957,
Secretary
Company, payable
6,
1958,
to
January
[stockholders
Secretary.
.
UNITED FRUIT
preferred stock, have been de¬
a
VANDERSTUCKBN, JR.,
November 25, 1957.
the $3.50 cumulative preferred
DIVIDEND
E. F.
December 17, 1957, to sharehold¬
at the close of business on
of record
RAIIWAY, N. J.
1957.
ROGER
10,020,000 shares of the Company's cap¬
outstanding and entitled to re¬
dividends, payable December 16,
1957, to stockholders of record at the
close of business November 29, 1957.
ital stock
ceive
John Corcoran,
MERCK & CO
of
December
The Board of Directors has declared a
dividend of. 25 cents'per share on the
December 6, 1957. Checks will be mailed.
13,
holders
to
a quar¬
terly dividend of 30 cents per share on
the Common Stock of the Company, pay¬
ers
C. EARLE MORAN
Secretary and Treasurer
b
I
CONSOLIDATION
pay¬
able
""
the: Common stock.
T. NEWMAN, Secretary.
on
the
Common Stock
•tootct«
i
taken
was
quar-'
on
share
per
of I business 'onf
December 5, 1957.
)]'
„
the
a
TEXAS GULFSULPHURCOMPANY
PITTSBURGH
'
terly dividend of 50c
m
stockholders of record
1957, to
at
declared
tors
company-:
has today declared a
..
dividend
The Board of Direc¬
~
KIHB»-manvih«
anaconda
ration
'
-
The Board of Directors of
the
r po
The Board of Directors of
Wis.; November 25. 1957
A dividend of $1.75 per share upon the out¬
standing V<v Preferred 'stock of this Company
and 11.375. Cents per share on the
Sec¬
ond Preferred Stock has been declared payable
January 2, 1958 to holders of record at the close
of
business
December
12,
1957.
No
dividend
27, 19571' v
November
'
'
,v C o
;* 'f
Company
Racine,
•
DIVIDEND NOTICES
(Incorporated)
,
Johns-Manville
DIVIDEND NOTICES
43
TJollett,
was
by the Board
of Directors out
President
of past darnings,
'
Big Spring, Texas
payable
on
Jan.^, 1958, to
stockholders of record
361#t Dividend' and
at the close of business
ELECTRIC
91st Consecutive Year of
BOND AND SHARE
Quarterly Cash Dividends
A regular quarterly dividend of
seventy-five cents (75#) per
share will be paid on Decem¬
ber 14, 1957, to stockholders of
record December 2, 1957. An
extra
dividend of one dollar
;COMPANY
\\ New York, N. Y.
'
232nd CONSECUTIVE CASH
of
Notice
Dividend
DIVIDEND
The Board of Directors has
A dividend of
($.25)
twenty-five cents
declared
share has been declared
a
of
share
Corporation,
payable
the stock of Burroughs
payable Jan. 20,
1958, to shareholders of record
at
the
close
of
business
Common
1957,
the
at
Dec.
shareholders
the
Sheldon F. Hall,
20,1957 '
business
President
on
Secretary
November 21,
the
YALE & TOWNE
mfg.co
DIVIDEND NOTICE
The
Board of
Directors de¬
regular
a
quarterly
dividend of 25# per share on
the
stock, payable
common
December 20,1957, to share
Betsch,
holders
Secretary and Treasurer
Detroit, Michigan
Nov.
CHAMP CARRY
record
Vice-President and Secretary
Cash dividends paid in every ye?r since 1899
o
clared
16,1957.
1957.
B. M.
Vice President
and
of
close
December 9,
of
MACHINE TOOL CO.
12, 1957.
Wm.H.MATHERS
SUNDSTRAND
share will be paid
per
January 6, 1958, to stock¬
holders of record December
on
Stock,
December 30,
on
to
27, 1957.
($1.00)
a quarterly dividend
thirty-five cents (35#) per
upon
Dec.
ot record
December
10, 1957.
1957.
G.J.LANDSTROM
Vice
•
Prestdent-Secretary
Rockjord, Illinois
Burroughs
serving
industry
v.
EASTERN
REYNOLDS
GAS
AND
DIVIDENDS
COMMON
3% Dividend
on
Common Stock
on
Common Stock
The Directors of Diamond Alkali
Company have
declared
a
on
STOCK
—
A
regular
quarterly dividend of 40 cents
a share,
payable December 28,
1957 to shareholders of record
-Regular Quarterly
Dividend
Nov. 21,1957,
3% stock dividend
authorized the payment
December 6, 1957.
STOCK
DIVIDEND
—
A
regular
semi-annual stock dividend of
2%
on
the
common
stock
November 19,1957
The
regular quarterly dividend of
fifty-nine and three-eighths cents
(59%l) a share on the outstand¬
ing Cumulative Preferred Stock,
4%% Series A, has been declared
for the quarter ending January 31,
1958, payable February 1, 1958,
to
holders of record at the close of
business January
December 28, 1957 to
shareholders of record Decem¬
A dividend
of Common Stock of record Dec.
ber
(12%<) a share on the out¬
standing Common Stock has been
declared, payable December 24,
a
regular quarterly
dividend -of 45 cents per share,
payable Dec. 12,1957, to holders
of Common Stock of record Dec.
2, 1957.
DONALD S. CARMICHAEL,
Cleveland, Ohio
-
Secretary
Nov. 22, 1957
4'/a%
CUMULATIVE
PREFERRED
A
regular quarterly
dividend of $1.12% a share,
payable January 1, 1958 to
STOCK
—
shareholders of record Decem¬
ber 6, 1957.
DIAMOND ALKALI COMPANY
(3-kumAah <|&tt
(m 4tj
St., Boston 16, Mass.
November 21, 1957
1957.
to
holders of record
at
now listed on the
New York Stock Exchange.
Symbol is EFU.
ness
at
60 cents per share;
fifty'five
share
was
December
stockholders of
CUMULATIVE PREFERRED stock.
4.32% SERIES
Dividend No. 43
27 cents per share.
the close of busi'
December 3, 1957.
The above dividends
are
stockholders
An
extra
dividend
of
(15l)
outstanding Common
Stock has been declared, payable
January 3, 1958, to holders of rec¬
twenty'five (25 <t) cents per
share was declared payable
January 10, 1958, to stock'
ord at the close of business Decem¬
cember
5.
of
record
a
dividend of fifteen cents
share
The
on
the
6, 1957.
Transfer
closed.
Checks
Books
will
will
be
of
not
by
business
be
mailed
December
3,
1957.
Dated, November 20, 1957
John G. Greenburgh
61
mailed from the Company's
office in Los Angeles, Decem¬
ber 31.
P.c. hale,
November 21,1957
The Chase Manhattan Bank.
treasurer.
Broadway
New York 6, N.
Y.
De¬
Checks will be
holders of record at the close
A
pay¬
able December 31, 1957, to
DIVIDEND
EXTRA CASH
the
close of business December 6, 1957.
ALLYN DILLARD, Secretary
Our stock is
ORIGINAL PREFERRED stock
cents
ber
E. H. BIRD, President
250 Stuart
of twelve and one-half
of
(55^) cents per
declared payable
1
able
2, 1957; and
DIVIDEND
dividend
A
record
DIVIDENDS
COMMON
pay¬
of
following quarterly divi¬
Dividend No. 194
CASH
19, 1957, to
10, 1958.
payable Dec. 23,1957, to holders
6, 1957.
the
dends:
CORPORATION
PREFERRED DIVIDEND
'
California
Company
CORPORATION
tennessee
Reynolds Metals Building
Richmond 19, Virginia
•
Edison
dividends
VKNNESSCI
company
Diamond
Southern
The Board of Directors has
METALS
FUEL
ASSOCIATES
Chemicals
J
November 21, 1957
home and
with essential basic products
Treasurer
1
44
The Commercial and Financial Chronicle
(2364)
Thursday, November 23,1957
...
BUSINESS BUZZ
Washington...
A
gM
jljL * l/\A/
BeVmd-the-Scene Interpretations
from the Nation'*
C.
WASHINGTON, D.
Capital
The
—
executive branches of the Gov¬
with 11thhout
budgetary
matters
that
will be presented by President
Eisenhower
to
Congress after
ernment
busy
are
Congress reconvenes Jan. 7. The
second session of the 85th Con¬
to
promises
gress
be
litical earmarks of
session
at
rough and
a
The long session
tumble affair.
that ended Aug. 30,
World
the longest
War
II,
no
was
It
after
of
partisan
1958
is a na¬
President
serving
election
be
will
there
week
because
politics,
tional
The
tail
—paper,
of
Democrat
extending
also
year.
to vote
expected
increase
President
The
vetoed
Senate-passed
;,
House
a
in¬
salary
Concepts
bill this year.
Should
consider
Actuarial
of
in Pension
Plans
Ho me wood,
people;
it, preference
individuals
demanded
would
be
given
—
United
Soundness
Dorranie C.
IIow
to
Irwin,Inc.,
111.—cloth—$5. (
it could and would if the
really
—
Bronson—Richard D.
Congress - seriously
reduction, which)
tax
a
Steel
—
Engineering Trustees, Inc.—John
Wiley & Sons, 440 Fourth Ave¬
nue, New York 16, N. Y.—$14.
govern¬
ment workers postal employees.
and
and
Vol. IV in monograph series Al¬
loys of Iron Research
salary-
a
classified
for
is,
Congress
in Iron
Zirconium
..
Columbiunj and
Calcium,
Boron,
minimum
the
outlets.
store
Harvard
tions, Inc., New York 3, N. Y
$3; cloth, $5.
**
Rep.
by
California, is expected to recom¬
mend
Management
Series,
ministration—Fairchild Publica¬
Standards
headed
Roosevelt,
James
Retail
Lecture
Graduate School of Business Ad¬
Labor
House
subcommittee,
that
inevitable
appears
heavy
a
Tobe
tion allowance.
crease
"pink tea" event.
week
Advanced
>
has all of the po¬
this distance
Several bills are
load.
tax
pending before the House Ways
and Means Committee on deple¬
wagti that would cover many re¬
tremely busy one.
V The approaching
since
ex¬
an
the
JL f-r lis
Make
the
Most
of
Vour
Sales Territory—Julius H. Katz
to
Prentice-Hall, Inc., 70 Fifth
Avenue, New York 11, N. Y.
cloth—$4.95.
—
is
political
able.
as
a
no
it
Therefore,
that
tain
with
The
cer¬
seems
some
verbal cuffings that would have
been undreamed of
in¬
second
drive
economy
that
got off to a fast start in the 1957
session
only to finish compara¬
tively weak, will come up again.
Local
vised
pieces of major leg-'
come up for con¬
sideration.
Some committees;
will
begin hearings shortly af¬
will
the
ter
to
return
law-makers
Washington.
The last session
not an important one from
was
the
standpoint of enactment of
major legislation.
'
The
obviously
will be influenced by Red Rus¬
sia's dramatic satellite program.
Perhaps the United States will
likewise try something dramatic
in the satellite field, when it is
feasible. It is apparent the mis¬
sile
will get all the
that it will need. As a
program
money
of
matter
no
shortage now, according
members of Congress
money
to
is
there
fact
some
who
U.
have
S.
the
of
critical
been
here
before,
War
II
there
World
since
ever
been
has
out
real
cal, that is supposed
reason
lessened
people
there
not
been
Perhaps
in
1959
still another.
will be
major proposals
thai will be considered, in ad¬
dition
the
to
missile
red-hot
and the question of tax-
program
tighten and
of la-j
without restricting
reduction,
are
curb
of the powers,
some
bor .unions
bargaining
to
rights,
security
liberalizing
the social
laws, farm
price supports, civil rights leg¬
islation
(which
pected
may
after
generation
year
another
be
ex¬
year
for
or
more);
Federal aid for school construc¬
tion
which
in
tracked
the
House
1957;
side¬
foreign
aid,
re¬
Apparently this
would not evoke any
major
con¬
troversy.
Federal right-to-
a
work
law,
call
42nd
create
which
storm.
a
McClellan
of
of the
man
mittee
leaders
Senator Jolin L.
Chair¬
Arkansas,
Senate
labor
on
ment
labor
Select Com¬
by
won
votes
than
more
despite
misdeeds,
his
of
all-out
rival,
Malcolm
S.
Forbes,
Vice
of
State
by
President
-
that
posal
is to
the
ishes:
"If
these
young-
Committee.
high
for
The
Army is
600 scientists
this total
Chairman
law.
power
is
management
expected
is
labor
to
come
subject
laws,
to
like
subjected.
The
Nation's
electricity is
reason,
ficial
new
called
at
watch the
will
For
of¬
be
on
beginning of
power
Shippingsport, Pa.
in 1958
There the
Nation's first big atomic energy
plant will be.gin operation. With
a
capacity of 60,000 kilowatts, it
will be
large enough to
city of 250,000 people.
Other
commercial
plants
power
struction
and
cago
predict
the
for power
mand
triple by 1975.
ergy
nuclear
New
Detroit.
that
a
con¬
York, Chi¬
The
experts
country's de¬
will just about
The Atomic En¬
by
Commission estimates that
question of expand¬
1962 the United States will
have more than 1,000,000 kilo¬
increased in¬
House
within
the
on
ment to
on
the
has
Depart¬
year
Defense
months
that
of
the
there
various
and may or may not
the "Chronicle's"
was
Davis
schedule
where politics is a
rates
on
money,
in
a
reiterates
Citron
and
to
employ
Robert J.
Colo.
now
—
Leonard
affiliated
J.
with
Meanwhile,
stepped
up
teenth Street.
scientists
thing"
in
for
ment
because
missile
-
has
nearly two
Service
planning
on
Jcins Walston Staff
the
(Spw'al to The Financial Chronicle)
"hottest
Defense
years,
the
ston &
is
He
ment
Government
including
long
now
affiliated
with
Selling Techniques
Roth
some
sections
and
Spotlight
Here
on
in
Modern
Charles B.
Prentice-Hall, Inc., 70
Avenue, .New York 11
Y.—cloth—$4.95.
Fifth
N.
With Baker,
Walsh
(Special to The Financial Chronicle;
.
'
CHICAGO, 111.—Royal H. Peter¬
is now connected with Baker,
Walsh & Co., 29 South La Sall(
Street. He was formerly with Bar¬
clay Investment Co.
son
With Blunt
formerly with A. G. Ed¬
wards & Sons in St. Louis.
is
now
Courts Adds to Staff
(Special to The Financial Chronicle)
employ¬
ROME, Ga.—Harold F. Hunter,
vacations,
Jr., is
now
with
Simmons, -208
Blunt
South
Ellis
La
sick leave and retirement pay.
East
First
Midwest
Stock
Exchanges.
Joins
Hemphill, Noyes Co.
(Special to The Financial Chronicle)
CHICAGO, III.—James N. Hamwith
has
become
affiliated
Hemphill, Noyes & Co., 231
South
La
Salle
Street.
He
was
previously with Boettcher & Co.
with Courts & Co., 213
Street.
,
TRADING MARKETS
Botany Mills
A. S.
daily diet
,,s
ot
that Woodrow Wilson went from
the New Jersey Capital at Tren¬
Ever since World War II Con¬
ton
to
the
it
White
was
Morgan Engineering
National Co.
I
For
gress, regardless of w hich party
been in power, has
that reason, among
others, poli¬
ticians are contending that Gov.
housing
Robert B. Meyner of New Jer¬
sey will be watched with marked
passed
legislation.
The 1958
session probably will be no ex¬
ception.
Congress
will
also
Carl Marks
The
White
House
and
are
of
20 BROAD STREET
jolt
by
Meyner's
Flagg Utica
NEW YORK 5, N. Y.
•
TEL: HANOVER 2-0050
LERNER & GO.
TELETYPE NY 1-971
.
gU—i V ....
tli*
whole RepuM'Van oartv suffered
a
Riverside Cement
FOREIGN SECURITIES SPECIALISTS
"
having a rough time because
& r.o. Inc.
•
interest the next two years.
consider the fate of small busi¬
Many small businesses
United States Envelope
recalled
House.
reelection.
,
Indian Head Mills
Caoital.
More Housing Legislation, et al.
people,
Campbell Co. Com.
Fashion Park
Nation's
kzz
:
■■•null
\
-
J
I ••
iv
\ \
•
Investment
Securities--
f
10 Post Office Square. Boston 9, Mass.
-V
:
....
.
x
'.u5_wuMtnttiiiS."111
&
Salle
Street, members of the New York
bourger
re-
Ellis, Simmons
CHICAGO, 111.—Thos. P. Flem¬
Meyner
the
many
ness.
on
—
—
Wal¬
Co., Inc., Mile High Center.
was
ceive other benefits that go with
Federal
is
man
of scientists and engineers to the
highest salaries of their respec¬
They will also
of
Questions and Answers
and
raising the salaries
grades.
Economic
—
Documents, U. S.
Printing
Office,
Washington 25, D. C.—$2.25.
DENVER, Colo.—Israel Zucker-
Depart¬
Commission
Agricul¬
to
Government
ing
program.
the
been
the
of
-
Relation
(Special to The Financial Chronicle)
Connell, Inc., 818 Seven¬
engineers.
Which
tive
is
a total of 7,500.000 and
by 1977, about 133,000,000.
ahead in other states.
has
F.
Hill
(Special to The Financial Chronicle)
DENVER,
-
there remains too much compe¬
tition between governmental de¬
partments
coincide with
views.]
own
With Robert J. Connell
were
pirating skilled personnel. Rep¬
resentative
tendent
the
necessary
future
pretation from the nation's Capital
depart¬
government
that
[This column is intended to re¬
flect the "behind the scene" inter¬
for
a
courses
see
take
by 1967,
loaned
-
watts of atomic power capacity:
power,
government
natural gas
bill, inflation, and bills affect¬
ing the accelerated
highway
program,
which
is
behind
terest
G.
Papers
submitted by panelists appear¬
ing before the Subcommittee on
Agricultural Policy — Superin¬
and the nation need."
Man¬
better utilize its skilled
many
Civil
under
are
near
serve
the
school
not
people
personnel.
For
demand
others,
among
chapter in
working
subcommittee,
ments
enormous.
Washington
hand to
a
future
of
time
second
evidence
Nuclear Power Progress
for
are
Representative James G. Davis,
will
make
employing 20,engineers. Of
and
11,000
do
we
Commercial
Its
Growth and Stability
admon¬
Cass
for
ture:
training in colleges,
apprenticeship programs, or in¬
dustrial courses, we shall have
made it impossible for them to
qualify for the further training
required to attain the skills they
Scientists in Great Numbers
Congress
anti-monopoly
Millard
of the Republican National
right-to-work
a
Labor
Nixon and Meade Alcorn, Chair¬
the missiles program. Meantime,
Another controversial labor pro¬
—
McGraw
—
Company, Inc., 330 West
Street, New York 36, N. Y
Policy
who will
en¬
expressed
has
that
Insurance
Most
200,000
the
manage¬
and
Line
—$8.75.
He
union-busting law, would
a
ing.
ing public
Book
man
However,
postal rate increases and hous¬
Also the
Multiple
of
this
other
Some
overlook
can
speeches
This year 1958 will be
.
exception.
no
to be the
has
you
President Eisenhower, the stump
why the tax load on the-
American
for If
work
ment of Labor.
some
theoreti¬
or
to
quired to file with the Depart¬
up
"emergency,"
boss
couple of eccentricities!"
Michelbacher
Senator
consider
pointed
been
has
it
fine
a
a
dorsement
confidence
getting "scooped."
As
he's
engineers and scientists
be needed by 1965 in
this country are either in high
school or will be entering next
fall. Therefore, Under Secretary
now
request.
paper—on
"Oh
reports which they are
session
second
Congressional committee dis¬
closures of racketeering by some
unions to disclose their financial
Another, "Emergency"
Zoning—Re-
of
Commerce, 112
State Street, Albany 7, N. Y.-
of the labor
higherups apparent¬
ly will result in some legislation.
Safeguards
for
pensions
and;
welfare funds, involving hun¬
dreds of millions of dollars, ap¬
pear likely to pass.
Still an¬
other
measure
would
require
and
manual—New York State
Department
Right-to-Work Legislation?
Several
islation
Planning
'
ago.
year
a
business
small
line.
receive
will
he
re¬
untouch¬
longer
Eisenhower
garded
Telephone
tfUbbard 2-1990
.
Teletype
BS 69
@FedFRASER