The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Ui«
i
v
4-.
t\
Y
i
1
.
OF MICHIGAN
1-J
NOV 3 0 1553
ESTABLISHED 1S39
EUff. U. 8. Pat. Office
Volume
New York
5590
Number
184
EDITORIAL
We See It
take
U. S. Congress
things:
V'-:
■
2
a
its
own—as
the
and this implies
seas,
bases
far
from
our
a concern
shores.
"The
'
word.
a
long-range outlook for individual companies.
articles, especially written for the "Chron¬
icle"
a
THOMAS J. DONOVAN
Vice-President & Executive Director,
Licensed Beverage Industries, Inc., New York
the
and
papers
restore
outlook
tactics
time
this
summarized.
and
the
the
that
sense
arrived
for naval and air
Second, it is
Economic
at
Staff
the
of
view
for
1957.
is
•/
sjs
•/;
great grimfaced military im¬
perialism holding down subject peoples all over
the world is ludicrous in these days.1 British
colonial policy and practice are among the most
genuinely progressive forces at work in the world
today. I say With complete confidence that with¬
out the continuation of British imperial guidance,
Continued
on
page
some
of
the
bills, attempts to restrict legal hours
of sale and other measures have been
the
the
eco¬
Ordinarily,
plans
business
and
Grover W. Ensley
as a number
and consumer intentions
Continued on page 32
measure
address
NOW
of
that
which
in
alcohol,
is
to
no
the
7
Thomas
prohibitory
be effective.
can
J. Donovan
The Drys
themselves
a
long range goal to achieve
attack on liquor itself, the purpose of
convince the public that beverage alcohol
prohibition by
Economic
members
v,
change
a
beverage
by Dr. Ensley before the Fourth Annual Conference
Outlook, University of Michigan, Nov. 15, 1956.
The views expressed are those of the author and do not necessarily
represent the views of the Joint Economic Committee or individual
An
the
Mm i
Dry
the
Dry ap¬
proach. They have run up the white
flag on their attempts to restore im¬
mediate prohibition
by legislation,
realizing that until a sufficient num¬
ber of Americans are frightened of
and
of
in
Time and circumstances have now
brought
the budgets of
State and local governments as well
Congress
weapons •„
O,.
.
have therefore set
*
an
Continued
on
Committee.
in corporate
SEC and poten¬
on page 36.
page
26
REGISTRATION—Underwriters, dealers and investors
IN
afforded
are
Budget
major
arsenal.
Report are transmitted to
surveys
of
32
SECURITIES
securities
DEALERS
the
of harass¬
option, anti-advertising
not
position
President's
the
Economic
legislative
by
of
with respect to
the outlook until February or March,
a
prohibition
attacks
effort to
has
the Joint Economic Committee need
take
propaganda
and various forms
Local
ment.
preview
a
Committee
firm
a
outlook
nomic
conference
their
the industry itself in an
different evaluations of prospects by
Prohibitionists have con¬
Since Repeal, the
Drys.
centrated
on
the
City
Liquor industry public relations problems over the
years have been many and varied, but the most signifi¬
cant of these has remained the organized opposition of
look at 1957 in
detailed
the
begin herewith:
discussions which could lead to some
\
'
of
again is privileged to present
These
may occur
First, it is
advance
after
of
idea
:\i
sgs
•>
rise
This is a preview of the outlook for 1957
meanings of the
not
•'
may
different
two
in
into
of
command
local expenditures
and
state,
"preview" in the title of my remarks needs
Joint
without
starve
"look ahead."
opinions of the chief executives of some of
the leading producers in the liquor and wine
industries as to current developments and the
explanation.
,
would
a
the
The word
economy
our
no significant interna¬
In breaking down the demand for goods
that may develop, Dr. Ensley points out:
if income, prices and population
continue upward at recent rates, and auto sales improve;
(3) 8 to 10% business investment rise for the year
resulting from rising prices, a slight first half year rise,
followed by a leveling off; and (4) net foreign invest¬
ment should continue at $1 to $2 billion per year.
ing increase
in
Gulf.
"We
which, with coal,
The "Chronicle"
3% price rise—assuming
Federal,
(1)
necessary
run until atomic power comes
the United States is on Texas
largely
developments and
regarding current
$4 to $6 billion; (2) $14 to $15 billion consumer spend¬
our
for oil—on
East
must
to
and services
Europe and our
are
especially written for the "Chronicle/' chief
of leading companies present their views i
In articles
executives
tional change.
vital interest. We are the power
responsible for the present good government and
future independence and democracy of a large
part of Africa, as well as other territories around
the globe. We are as dependent on the Middle
expression of
view
Ensley anticipates a $420 billion GNP, in 1956 prices,
$430 to $440 billion based upon estimated average
v.'-7
we are part of
on
the Continent
firm
or
from his account of
passages
"Strategically
commitments
staff's
Joint Economic Committee
of the economic outlook, Director
1957 prior to
Previewing
,
these
Liquor and Wine Industries
Director, Joint Economic Committee,
Executive
distinguished Britisher, Henry V. Hodson,
Editor of the "Sunday Times" of London, re¬
cently returned from an extended visit to this
country, has some important things to say in last
Sunday's issue of the New York "Times." As
one would expect, he is quite articulate and ac¬
cordingly is able to set forth forcibly some facts
about the present British position in I the world,
and to make clear the why's and wherefore's of
current British policy, particularly as respects
We
Copy
a
By DR. GROVER W. ENSLEY*
A
the Middle East.
Cents
Trends and Prospects in
Previewing 1957 Outlook
As
40
Price
7, N. Y., Thursday, November 29, 1956
a
complete picture of issues now registered with the
tial undertakings in our "Securities in Registration"
starting
Section,
State, Municipal
in
State and
^
Municipal
Wi—
UNDERWRITERS
BROKERS
and
STATE
DEALERS
Securities
telephone:
MUNICIPAL
AND
COPIES OF OUR
LATEST
HAnover 2-3700
INDUSTRIAL
BONDS
RAILROAD
CHEMICAL
PUBLIC
TODAY'S
Burnham
y
MEMBERS
NEW
YORK
and
AND
15 BROAD STREET, NEW
CABLE:
Company
YORK 5, N. Y.
•
Dl 4-1400
T. L.Watson &Co.
ESTABLISHED
V
1832
Members
the
Teletype: NY 1-708
American
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STREET
NEW YORK 4, N. Y.
FIRST
<£(XltflWedt COMPANY
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Executed
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•
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TO
115 BROADWAY
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bank
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Company, Inc.
COMMON
BONDS & STOCKS
Analysis
Regular Rates
oar
request ta
(Room 707)
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&
upon
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DEPARTMENT
Goodbody
NEW YORK
Exchange
On All
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Banks and Brokers
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25
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Members
TELETYPE NV I-2M2
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Net Active
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REQUEST
Harms, Upham & C-
OF NEW YORK
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of
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ON
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DEPARTMENT
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BOND
Public
"POCKET GUIDE FOR
FOREIGN
&
CORN EXCHANGE
30 BROAD
and
A
U. S. Government,
40
Exchange Place, New York 5, N.Y.
IRA HAUPT & CO.
Members New York Stock
and
other
111
Exchange
Principal Exchanges
Broadway, N. Y. 6
1 NORTH LA SALLE ST.
■
CHICAGO
Teletype NY 1-702-3
WHitehaV 4-8161
WOrth 4-6000
Teletype NY 1-2708
2
The Commercial and Financial Chronicle
(2278)
For Banks, Brokers, Dealers
Tax Losses
The
only
If It's Over-the-Counter
.
a different group of experts
advisory field from all sections of the country
in the investment and
.
.
participate and give their
for favoring
reasons
(The articles contained in this forum
Try "HANSEATIC"
Our
complete trading
supplemented by
are
wide
and
more
of
network
active
than
securities.
Interested
in
blocks,
our
staff
fully
is
Whether you
.
.
in
large
are
small
or
experienced trading
equipped to serve
ing,
ready
sweep
with the
country
that
to
it
raced
the
swiftness
across
same
the
across
face
Metropolitan
New
York.
it
set-
' '
of
1920
lever, Korvette
years
into
WOrth 4-2300
Teletype NY 1-40
BOSTON
•
Private
Wires
SAN
Counter
to
ket,
FRANCISCO
Principal
Mar¬
and
RIGHTS
SCRIP
&
Since 1917
New
1X0
Stock
Exchange
Stock
York
American
original
of 10 in
earnings for
the fiscal
year
ended Sept. 30,
1956 are about $1.25 a share, but
are
expected
to
move
sharply
higher in the current fiscal year.
These additional earnings will be
TEL. REctor
2-7815
price
Estimated
of
It is in the
vanguard
trend that may
a
revolutionize
merchandising hard
of
and soft goods, much as the super¬
market
completely
changed
the
retail distribution of food.
Trading Interest In
And oddly
Furniture
enough, the retailers
whom the discount houses
on
Commonwealth Natural Gas
are
the
the
STRADER and
v
COMPANY, Inc.
Lynchburg, Va.
LD 39
TWX LY 77
discount
house
small
appliance
retailer—
dealer
and
department store—were inef¬
ficient in the ciistributioft of goods.
Korvette and other discount houses
Dumont
E. J.
Broadcasting
do
all
their
shopping in
one
fad.
arguments
showing
like
why
a
Korvette of
F. H. McGraw
Punta Alegre
Sugar
Korvette's sales
success.
from
$2
million
million
in
1955
$55 million in
going
at
in
1950
to
sales)
Circuit
iVreeueaniGompanu
ESTABLISHED
37 Wall St., N. Y.
1929
Tel. HAnover 2-4850
Trading Markets
Sodak Uranium
Seaboard
1956, and
What's
are
rate
more,
Drugs
Southland
Radorock
Mining
Racing
Resources
To
aci ieve
competitive
some
this
as
in
now
$85
there
are
as
brand*
name
radio
Philippine Oil Development
unusual
t
Exchange PI., Jersey City, N. J.
HEnderson 3-8570—N.Y.:
Dlgby 9-3424
Teletype JCY 119
Korvette
now
Two of these
with very
each.
for
after
have
come
to
realize
are
purchase
the
is
1956
of
it
the
customer
In order for the coventional
tailers
re¬
compete with discount
they would have to radi¬
so
jeopardy
with
would place them in
their
many
cus¬
tomers who want to keep the tra¬
services
However,
pressure
and
the
has been
frills.
discount
year
111
Tokyo
1897
—
70
Investment
Branches
Bankers
Broadway, N.Y.6 COrtlandt 7-5680
ended
listing On the New York Stock
Since 1932 Special sts in
VIRGINIA—WEST VIRGINIA
NORTH and SOUTH
GEORGE
discount
skill
in
almost
classified
as
V.
Harbison
CARGLINA
IIONEYCUTT
&
Henderson
MUNICIPAL BONDS
Los Angeles, Calif.
W.-R. Grate &
F. W.-
Company
My
selection at this time for
"The Security I Like Best"-forum
is* W.
R:
Stock.
Grace
In
&
merchandise
will
north
be
New
built
in
Currently,
stock
is
$55 par snare,
with
for
The
Philadel¬
earnings
1956
George V. Honeycutl
keepsie.
v
>
1933.
The current rate is 600 a
But why out of all the
discount share quarterly, or $2.40
annually!
houses does Korvette
appear des¬
W. R. Grace & Cp. isn't just a
tined to become the Sears & Roe¬ }
successful
(1)
and
There
are
sev¬
has
It
is
off
to
it[s
gotten
head
a
start,
is
one
of
tools
the most useful
in
securing
So. it's
new customers.
smart
to
place
your
advertisement in
THE
COMMERCIAL AND
corporation;
growing industrial empire.
a
First
business
Advertising
esti¬
mated at $4.50
to $5.00 per
City, another
share. Divi¬
it near
Scarsdale, three dends have been paid in each
year
Jersey, and one in Poifgh- since 1899—except for 1909 and
reasons:
84
selling at ap¬
proximately
York
buck of its fit Id?
&
price-
■v.
eral
RH 83
reason¬
of
in New
Teletype:
Telephone 3-9137
is,
a
the
million worth
annually.
System
available
able
feet of selling space. Each
is expected to sell be¬
$12 and $25
RICHMOND, VIRGINIA
Bell
earnings mul¬
tiple.
unit
tween
that
still
at
CRAIGIE&CO.
Common
issue
The
new
Co.
opinion, this secu¬
rity is a highgrade growth
my
de¬
of
"ain't
all
the
what
she
"Grace
usta
Line"—
be"!
Most
a
so
into
items.
price
But
cadres
of
intense
that
competition
long
so
to
train
super¬
its
new
only
small
a
increase
in
super¬
visory people and office help).
(4)
Lastly, Korvette has the
funds
to
finance
its
present
ex¬
as
on
de¬
$3
million from
balance
will
be
25
Park
CHRONICLE
Place, New
York
7
_•
Chemicals
Steamship
j
17
15
32
28
Import & Exp. 34
Over-the-Counter
26
Outdoor
Chemical
23
18
1
5
2
Quotation Services
5
2
Advertising
Other Domestic
The
%
34
25
Latin America
U. S.
%
25
6
Division
is
2
for 42 Years
ex¬
pected to contribute 37% in
1956,
in a few more
years about
50%.
and
The program will cost about
$8
million in 1957. Of this
$2 million
is
available from last
January's
offering
FINANCIAL
1*55
%
and
that
stores will speedily reach
optimum
efficiency ($100 million of addi¬
tional sales could be handled
with
public
as
executives
pansion program.
house
department stores have been
many
Office
Brokers A
Lxciiange.
operates 12 stores.
are
visory personnel
to
But to do
forced
Co., Ltd.
Established
Home
understood the company will apply
iot
After all
expfense
separately
service.)
houses
Yamaichi
is
bills
for the
write
forthcoming
big lead—always people still,think of it as just an
utterly senseless for difficult to overcome in
any eco¬ old well-established transportation
them to pay list price which in¬
nomic sphere.
" : .>
company.
Well, it's that—plus a
cludes the regular retail markup.
(2) Management has the good lot of new
activities, principally
They know if they do they are fortune of not
being schooled in ichemicals. The following statis¬
paying for all the services and the ' old" methods of
merchandis¬ tics tell the story of change:
frills
that they neither
use
nor
ing; all the top people grew
up
want.
(On big ticket appliances with the
Percentage Distribution of Sales
company.
where delivery is a physical ne¬
And Operating Revenues
(3) The company has gone to
cessity, Korvette provides for it, considerable
1952 1954
that
or
Securities
published, it is
company's two super-"
markets are adjacent to
them.,,'- *!
little effort. Intelligent
consumers
re
outstanding expiring
partment stores. They contain over
70,000 square feet of selling area
phia, in
The
shares
thk
information
current
dem¬
stores
carrying the
appear to be stirring due
improved Japanese economy.
For
requires
numerous
onstrated
vs.
advertising has
"sold" him the radio, he has the
cash to pay for it, and he cer¬
tainly can carry it out of the store
ditional
CAPPER & CO.
addition
Report for the
Sept.. 30,
*-m The answer is & J^oung, aggres¬
sive management which has
(as
guarantee.
to
stock
common
1,242,000
1959
Shortly
Annual
little faster than the others?
a
has
In
30,
houses, but what makes Korvette
tick
accom¬
75,000 shares at $11 each, an^ em¬
ployee
stock
options
expiring
Dec. 31,1959 for purchase of 51,800
shares at $10 a share.
$36
field
a
retailing
special ingredient.
20%
cally alter their present services.
Big Horn Powder River
Nov.
stores
new
future
be
can
Call
warrants
rose
of
without
half.
owns
be
margin
gross
averages
manufacturer's
but
Cataract
displays, etc. In
36% for department stores.
Take the customer purchasing
a
offices
STOCKS
outstanding of which management
dis¬
to
that Korvette's
plans
Korvette
estimated
an
annual
an
million.
of
manufacturer's
United Artists Theater
branch
our
after
dilution.
new¬
the
indicate
plished
be
can
generally is a passing
nothing speaks louder
But
than
elaborate counter
of
to
J A P AN ESE
Korvette
expansion
count house
square
%
wires
remaining at practically .V
stationary levels for three years
frills
include
credit, de¬
livery,, large sales forces, time
payment plans, fancy packaging,
a
Direct
industry to create
By limiting cash
Over the next year or so
dramatically that by
plans
eliminating the frills in retailirtg call for adding seven new stores,*
each with about
they can effect substantial savings.
50,000 or more
fact, Korvette's
Korvette, Inc.
earnings.
have proved
These
Trading Markets
NY 1-1557
Birmingham, Ala.
Mobile, Ala. /
now
be¬
arose
conventional
the
growth
a
tached.
the discount house.
cause
HAnover 2-0700
New Orleans, La. -
to
encroaching are almost helpless to single handedly creating a new
anything about it. To under¬ form of retaking, i.e., the depart¬
stand why, it is necessary to trace ment store discount house chain
the reason for the emergence of with or without supermarket at¬
The
Life Insurance Co. of Va.
;
stock) the company
a large and
growing
pool of funds. These factors seem
do
Bassett Furniture Industries
Exchange
Exchange
has available
is the largest discount
Korvette
Stock
Stock
19 Rector St., New York 6, N. Y.
dividends (none are currently paid
fast-stepping
young,
York
on
to
house chain.
methods
American
now
opened next year are ex¬
by several new stores
scheduled to open this fiscal year pected to step up volume to a $150
million
annual
rate before
1957
plus
year-round
operation
of
bows cut.
units cpened only last year.
Exchange
BROADWAY, NEW YORK 8
the
comer
the
from
up
generated
McDonnell &fo.
they
in
mustered
Morton Globus
offering
public
that
so
American
no
growth of the simple mathematical
principle of reinvesting earnings
more
Plenty of
earlier this
January.
goods
heavily
place, Korvette has successfully
invaded the supermarket field.
17, down from
a
high of 26
Specialists in
has gone
New
Members
As Korvette has
to
in
Korvette
year
Members
banks.
'
hasn't even stopped here.
Again using its name as a lever
along with the fact people like
sells around
Cities
Steiner, Rouse & Co
coun¬
company
ago.
CHICAGO
•
soft
'But
Over-the-
the
the
volume.
10
Traded
Broadway, New York 5
on
retailers
account for about 40% of the total
in
even
existence
Exchange
(Page 2)
immobility
Bought—Sold—-Quoted
V.
longIA the meantime, Korvette has term debt outstanding it is in an
of broadened its
activities far beyond excellent position to borrow, when
selling only appliances and other nectssary.
hard goods.
Gradual
Using its price cut¬
appreciation
in
the
ting reputation in hard goods as a stock shou'd b2 a natural out¬
company
not
Member
PHILADELPHIA
a
This
conventional
of
try wide open" to Korvette.
blan¬
be
may
Corporation
120
Louisiana Securities
&
Company—George
Honeycutt, of Harbison 6c
Henderson, Los Angeles, Calif.
literally has left the whole
keted by stores
Stock
Company—Morton
defensive.
New York Hanseatic
Associate
Corvette
Globus, of Breyfis & Co., New
City. (Pa3e 2)
York
nor
part
Company
A great retailing storm is brew¬
When
American
J.
Alabama &
Selections
partment stores remain "depart¬
ment stores," they will be on the
Dreyfus & Co., New York City
E. J. Korvette
ties the nation
Established
E.
'
offer to sell the securities discussed.)
GLOBUS
$
promptly and efficiently*
you
as an
be,
to
Thursday, November 29,1956
.
Participants and
Their
particular security.
a
intended
not
are
Week's
.
W. R. Grace
MORTON
Over-the-Counter
400
.
wires
markets
they to be regarded,
•re
facilities
a nation¬
private
trading
This
Forum
A continuous forum in which, each week,
Swaps
or
Security I Like Best
.
of
stock
anotner
It
is
difficult—as
from
as
National Quotation Bureau
im¬
Incorporated
Established 1913
possible—to give anything but the
earnings, and the highlights
borrowed
well
of
a
company
Continued
of
the
46 Front Street
CHICAGO
on
page
13
New York 4, N.Y.
RAN
FRANCISOO
Volume
Number
184
5590
.
.
The Commercial and Financial Chronicle
.
i
(2279)
*
"■
,l.f
Petroleum Industry's
In the Western
H
Prospects
Hemisphere
By EDMOND N. MORSE*
INDEX
Previewing 1957 Outlook—Grover
Petroleum
l
gain
record
over
Mr.
Morse
who
Canadian
Trends
1957 domestic oil industry earnings, a
1956 earnings is anticipated by
this
centering
interest
producers and integrated companies, and
and
—Edmond
high
sees
firms
"
demand.
Believes integrated companies show
even brighter outlook than
for Western Hemisphere crude oil producers, providing refined product prices pass their recent lows.
Analyzes changed sources of supply at Europe's disposal; the
outlook for
the
industry
early forecast
for
1957
mates
domestic
the
troleum
for
1957.
pe¬
Our
i
terioration
deterioration.
has
been
in
De¬
sucn
will
be
considerable
gasoline
njj
it
p e
summer.
troleum
con¬
summer
sumption of
time
4-6%.
pressure
lasting into the
the
earliest,
next
At
would
then
the
be
first
might
This
1957
rates
another
age
suffering
1956
compared to
to
and
our
N.
Edmond
which
1955. Unfortunately, produc¬
of
refined
and
petroleum
products this year has been at a
higher rate than the growth in
consumption. The result has been
an
uneasy
accumulation of in¬
ventories. For example, between
May and November crude oil in¬
ventories
as
compared
with
a
year ago increased from —0.5%
to
+10%, gasoline from +8.6%
to
+13.4%,
heating
oil
from
—9.3%
to
+3.5%, and fuel oil
from —23.3% to +2.6%.
the low side
on
to
the
Ordinarily
would
increase
the
be
in
crude
inventories and
gasoline.
Prospects for gasoline are impor¬
because
tant
fined
ings.
although
still
this
is
the
main
product in terms
The expansion in
of
gasoline,
levelling
now
off,
excessive relative to
mand.
In
reflection
re¬
earn¬
of
is
the
this
de¬
un¬
desirable
oil
industry
heating
duces
line
lem,
line
we
the Middle East
can
estimate
inventories
accumulate
200,000
at
b/d,
million
210
California.
may
the
prob¬
that
gaso¬
continue
rate
resulting
barrels of
creates
fore
of
about
inventory by the end of the heat¬
ing
season
will
be
12
next March. This level
million
higher
considered
6%
*An
large, but in
seem
industry where supply and
demand
are
closely
geared,
an
address
Baltimore
26,
ample. An increase of
might not
the oil
were
by Mr. Morse before the
Security Analyst Society, Nov.
which
from
year
to
further
build
twice
much
as
inventories
99
East
and
Economic
Current Credit
WALL STREET,
Telephone:
'
UNITED WESTERN
12
MINERAL
14
Prospects—Roger W. Babson—15
—
Ellis
L.
SABRE-PINON
17
URANIUM
17
3 STATES
Appraising the Business Outlook for the Long and Short Run
—Edmund
A.
Mennis
NATURAL GAS +
18
Impact of Suez-Oil Crisis and
pressure
in
BARUCH-
21
KENILIND OIL
Views of
Liquor and Wine Industry Leaders
Starting on the cover page we present, in articles
cially written for the "Chronicle," the views of
espe¬
J.F.Reilly&Co.,Inc.
some
Members
Salt Lake City Stock Exch.
Spokane Stock Exchange
I
42
Broadway, New York 4
DIgby 4-4970
1
Keeping
On
William
Franklin
Even
an
Keel—Edwin J.
Rowland
Schlesinger
23
Dies
.
Jersey City
15
Wires
Investors Research Sees Market in Very
Mrs.
Charles
Ulrick
First Woman to Become
Bay
President of NYSE
and
Chairman
(A. M. Kidder & Co.) Firm
Shortly
up
there¬
Baruch Oil
Three States
Bank of Montreal Discusses Canadian Price Movements
22
Purchasing Agents'
23
Natural Gas
Short-Run
Outlook—._
Capital Outlays Lower in Third Quarter, according to
Hycon Mfg. Co.
Conference Board-"Newsweek" Survey
oil
be
classed
25
^
inven¬
Pacific Uranium
Regular Features
unfavorable.
as
However, the Middle East crisis
already seen the sale of crude
As We
oil
Bank
has
by
domestic
producers
to
Europe with even larger sales in
prospect. We will probably also
reduce
imports
our
therefore
and
duction
rently
here
of
require
home.
crude
more
at
believed
It
that
receipts of crude oil
oil
pro¬
is
are
running
1,000,000 b/d below normal
is
considerable
in
view
of
Western
European consumption of
2,200,000 b/d.
about
There is little chance of
Europe
purchasing enough gasoline from
to
us
reduce
excessive
our
in¬
ventory position. However, a re¬
duction in crude oil inventories
seems
Most
plied
the
of
likely and in fact is
to
of
will
come
Gulf Coast where
crude
million
that
oil
are
barrels.
these
about
is
inventories
sup¬
from
inventories
now
It
occur¬
oil
crude
our
Europe
It
(Editorial)-—--
Cover
Stocks--
Insurance
Man's
Business
Bookshelf
22
,
be
re¬
on
8
Washington Ahead of the News—Carlisle Bargeron——
From
Business Activity.
Indications of Current
Mutual
NSTA
Our
23
in Registration
Security
.
The
Louisiana
on
page
24
of Trade
State
24
—
.
and
Lithium Corp.
16
2
4
Industry———
United Western Minerals
44
You
and
Washington
PREFERRED STOCKS
U
Reg
S
1 Drapers' Gardens, London,
land, c/o Edwards & Smith.
Weekly
COMMERCIAL
and
Copyright 1956 by William
Company
Patent Office
.
.
.
^
WILLIAM
25
Spencer Trask &. Co.
Members
New
York
•
Boston
Nashville
Exchange
•
•
TELETYPE N. Y. 1-5
HERBERT
Chicago
Schenectady
•
•
Glens Falla
New
2-9570
to
Publishers
Subscription
9576
.
SEIBERT, Editor & Publisher
D.
WILLIAM
DANA
SEIBERT,
C.
Eng¬
subscriptions
Jessop Steel
*Prospectus
Territories
Possessions,
Union,
Dominion
Canada,
of
Rates
States,
United
in
Pan-American
President
B. Dana
Reentered as second-class matter February
25, 1942, at the post office at New
Yorki N< Y., under the Act of March 8, 1879.
York 7, N. Y.
„
and
$60.00
Nov. 29,
1956
;
Thursday (general news and advertising issue) and every Monday (complete statistical issue — market quotation
records, corporation news
bank clearings,
and
Other
Chicago
city
news,
Offices:
3,
111.
135
etc.).
South
KB V. FRANKEL & CO.
Members
of
year;
In
per
$63.00
per
39
Salle
St.,
(Telephone STate 2-0613);
.
Bank
and
Quotation
$40.00 per year.
Note_Qn
rate
Record
year.
Teletype NY
3-3960
1-4040
& 4041
.
—
Monthly,
(Foreign postage extra.)
acc0unt
of
exchange(
the
fluctuations
in New
Wires
>
to
DENVER
In
remittances for for-
York funds.
Direct
PHILADELPHIA
eign subscriptions and advertisements must
be made
v
BROADWAY, NEW YORK 6
Other Publications
thg
La
Request
8.
Other Countries, $67.00 per year.
Every
Worcester
on
INCORPORATED
U.
WHitehall
Thursday,
state
•
DANA COMPANY,
REctor
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
Albany
Stock
P.
Park Place,
E.
.
CHRONICLE
FINANCIAL
Sulphur
Revlon*
38
Offerings
and You—By Wallace Streete
.
Pan American
(
34
Salesman's Corner
.
Sulphur
20
—
Securities
Securities Now
Gulf
8
Securities
Utility
The Market
to
'
19
Reporter's Report
Prospective
Direct Wires
Philadelphia * Chicago • Los Angeles
5
Governments
Reporter on
Security
*
16
A. Wilfred May
—
Our
Railroad
7
8
News About Banks and Bankers
Public
Exchange PL, N.Y.
40
——
Observations
40
Teletype NY 1-1825 & 1-4844
42
Funds
Notes
out
distress.
HA 2-0270
the London Stock Exchange— 25
The Security I Like Best
Continued
&
44
Dealer-Broker Investment Recommendations
Einzig: Impact of Suez Crisis
duced by 40 million barrels with¬
causing
Singer, Bean
Mackie, inc.
41
:
Coming Events in the Investment .Field
90
estimated
can
See
and
cur¬
European
City & Denver
*
,
BROAD
Lake
j
HE 4-3634
20
Published Twice
25
•
j
19
r
$154 Million Memphis Electric Revenue Bonds to be Marketed
The
have specialized in
to Salt
Over-Sold Condition 17
tories under normal circumstances
1956.
For many years we
Teletype NY 1-4643
Exchange Place
gaso¬
the gas¬
upon
crude
-
Middle East Program
a
—George L. Parkhurst
structure.
trend
4-6551
10
—
.
Picture—Henry H. Heimann
Snortage—Lawrence
NEW YORK
WHitehall
10
Providing Qualified Executives to Overcome Growing
up
obviously
gasoline and
more
price
ring.
barrels
than last March when stocks
oil
more
would
to
in about
gasoline in
demand
heating oil and to build
as
heating
which
Even with
Middle
Obsolete Securities Dept.
9
•_
Growth Rate and the Business Outlook
oil
about
about
of
Trend
are
inventory. Unfortu¬
nately the average refinery pro¬
trend, price cutting has
prevailed over much of the
east
6
Rate
relative
now
this
Moscoso—'.
Interest
companies in the liquor and
wine fields on current
developments and future pros¬
pects for their companies and the business in general.
pects of cold weather require the
United
States
in
expect
the
of the chief executives of
a large number
burners in operation. Pros¬
oil
The
the only two items
might cause concern
heating oils
even
and
obsoletes
cold weather and
of
oline
above which
increase
might
we
Prospect for Gasoline
oil
consumption and
of
Profits—Teodoro
Portfolio
Diversification in Industry: Taking in Other Fellow's
Washing
—C. Norman Stabler
the
Gasoline Problems
Inventories
Bond
his
us!
to
out¬
Heating Oils Supply Adds to
Morse
demand
increase in
5.3%
a
tion
our
Investment
Sold
rea¬
of
manufacturing capacity.
probably
over
outside
Although Europe is
gasoline
shortages
it
relatively little gasoline
consumes
Rico
MILLIONAIRE
4
Effective Influence
Municipal Bond Review—George B. Wendt
inventories
similar
very
show
gasoline
in
lorig-
growth
will
for
Cobleigh
More
THE HAPPIEST
3
A
5
—Beryl W. Sprinkel_
United States.
annual
e r m
to
lets
as
year
measured
t
gasoline
be brought down to
sonable levels. There are few
as
aver¬
terms of
that
Hemisphere
on
prices
domestic
Western
—Aubrey G. Lanston-
The
forecast
a
U.
Policies for
evidence
months.
some
might
ordinarily be assumed that there
in-
an
price
With
esti¬
crease
serious
for
>
of 6% in supply can lead to
excess
Cover
How to Minimize Stock Market Risk—Lewis D. Gilbert
heating oil, and gasoline inventory problems; and
crude oil price stability despite tightening oil supply situation.
Disintegration of political forces
the Middle East has improved
the
Blends—Ira
Reserve
Low Monetary
1
in
Ensley
■
—LeRoy F. Winterhalter.
*
crude and
in
Prospects
Page
.
AND COMPANY
W.
Morse
Brands and
Government
the encouraging one
,
N.
Federal
Puerto
Latin American
expected to supply increased
in
Wider
domestic
upon
upon
Industry's
[iCHTCIlSIfl
B. S.
Articles and News
Smith, Barney & Co., New York City
Instead of declining
3
Ml
SALT LAKE CITY
The Commercial and Financial Chronicle
4
.
Thursday, November 29,1956
.
.
(2280)
provided but 15c a share of the
1955' 'earnings they should show
Trends in Brands and Blends
The
By IRA U. COBLEIGH
"How to
A
a
Independence"
Security and Financial
Gain
i
.
j
9
\
Steel
The
Chemical
Industrial
S.
s
7
holiday-season look at straights and blends;
liquor stocks on the shelft and on the
number of
Carloadings
Ohio, there is a big metallic so¬
dium plant which worked at but
and at certain
market*
60%
of
capacity
Index
and
Industry
Price
Auto
Daniel
Archer
Trade
Commodity Price Index
Food
New
1955.
in
with
contracts
Retail
of Trade
State
At Ashtabula,
plants.
Production
Electric Output
Division of National Distillers has
of
Author
U.
/■ v
-
above 60c for this year.
Production
Business
Failures
J
Union Carbide this
Hard "likker" consumption dpes by Park and Tilford, and "Tovar- year should
bring sodium pro¬
isch" by American Distilling, plus duction
not
follow
trends
in population
up close to the 50 million
in the United States. Other factors some 50 other brands. It's just a pounds a year original rated ca¬
little baffling to see the way this pacity of the plant. (This capacity
take over here, such as preference
vodka has caught on.
The taste is being increased.) U. S. Indus¬
or pocket book
swings
to is pretty close to neutral and the trial
Chemical
also
has
four
wines
and name is Russian. It does, however, sulphuric acid plants.
Midland, and
being, of all
of
beers, high
boast
prices
hard liquors, the least tell-tale on
the breath.
(But, alas, a boozy
high
kept
tj>y Fed¬
Alcoholics
Anonymous;
d
millions
gallons just
n't
The industry has long hoped for
the $10.50 per gallon
t
all,
because they
o
g
e
relief from
counted at
Ira
U. Cobleigh
market
bootleg stills. But, withal, tne
consumption of distilled waters
panies now see their road
to
higher sales and profits along the
lines
of
smarter
merchandising
It was
230 million gallons for 1946, and
appears
on
the rise.
not until 1955 was the 200 million
figure
gallon
reached
again
This
crossed.
the
year
is
of
menting
for
com¬
two-thirds
of
doubling
cocktail shakers,
as
toting music boxes on the bot¬
tom
delivering
such
convivial
or
blends which
Spirit
on.
accounted
worth
are
noted the beautiful array
decanters, ornamental
or sideboard, with
holiday
some
trends
rather than
have,
of
bottles for shelf
1955.
Certain
You
relief.
tax
course,
advance of roughly 5%
over
better packaging,
via
million
210
estimated
an
about
and
or
target
gallons,
National Distillers owns 60%
into the profit column
move
Although
1949
tunes as
consumption
are still the major
whiskey preference, ac¬
counting for above 40% of total
consumption
in
1955.
Straight
"Happy Birthday," "How
Dry I Am" or "Show Me the Way
to Go Home."
Considerable re¬
American
There is also a 20%
tric
It
Suez
producer.
and earned $1.60
year
the gross
higher with net sales
This
division
chemical
the
from
have
ac-
-
around
share
a
been
projected for 1956 on
the 8,641,000 shares listed on the
New
York Stock
Exchange arid
is
around
be
80%
an
reasonably
payout
safe.
The
current yield is 5.35%.
Distillers
tween
ranged
Seagram
be¬
39% and 30%., It has excel¬
lent dividend coverage
cluding
$1.70,
extras
primarily
for
dividends
often
Walker
including
given
(at
extras)
top
for investment
billing
because
purposes
paying $4
frequently
65
are
of
their
dend distributions.
National
talk
somewhat
j
DisrtilleSrs) we'd like to
little
a
more
of
a
about
special
ais>4t.;|s
situation,
ranking second among the distil¬
swinging quite substan¬
more diverse lines of
endeavor.
The leading National
lers, but
tially
into
Distillers
LET'S LOOK AT THE BRIGHTER SIDE
1,800,000
Many thousands of AmerN
cans
are
cured of
every year.
people
cancer
More and
more
going to their
doctors in time...To learn
how
to
are
head off
cancer,
the American Cancer
or
call
Society
write to "Cancer" in
care
•<
a
cases
Brook"
1,100,000
your
local Post Office.
and
over
the
three
in most
1954
altogether
1953,
years
properties
building
and
very
His topic
Navy."
up
business.
have,
important
These
chemical
indeed, become
and while they
Mrs.
John
ents
of
a
Constance
7
new
in
scrap
11
Haynes
oz.
daughter,
Latshaw,
born
Dempsey Opens
(Special to The Financial Chronicle)
TAMPA, Fla.—Frank L. Demp¬
sey is engaging in a securities busi¬
from offices
Street.
He has
at
prices,
this
trade
declares,
paper
mills have been far from
3110
Fielder
sharply
rose
automotive
The
50%
of
its
comfortable, "The Iron Age" concludes.
industry
giving holiday.
week scheduled more than
assembly following the Thanks¬
last
plants for Saturday
/
:
'
;
in overtime
week's sched¬
ule at 127,021 car completions compared with 135,641 last week.
The statistical agency said the 1,000,000th
1957 car assem¬
bly, programmed for this week, fihdg the auto nfakels operating'
nearly 190,000 units behind their original production target. A
68,000-unit deficit is shaping up for November following 122,000
"Ward's
work
Automotive
Reports"
said
the
surge
largely responsible for holding the past
was
October.
\
.
However, weekly operations are showing steady strength as
well as a more even distribution of the industry's production.
of last week's volume, Ford
51.6%.
;
'
"
Remaining producers, "Ward's" added, were.held to a 1.7%
bite by suspension for the! second
week of' American Motors
Corp.'s Nash and Rambler assembly by a supplier strike.- Mean¬
while, a week-old strike at the Buick-Oldsmobile-Pontiac plant*
at Framingham, Mass., ended on Wednesday of the past week.
"Ward's" said Chevrolet and Ford are running in a virtual
Chrysler
29.8%
'
scheduled
16.9%
Motors Corp.
General
industry's
the
for
tie
Corp.
and
weekly
production
United
a
honors, with major
Mercury, Lincoln and
States
metalworking's
will be vitally affected
magazine stated
on
national
The
of
steel
.
-
Pace of 100.3% of Capacity
domestic
This Week
business
next
by the troubles in the Middle East, "
year
Steel"
Monday last.
metalworking
weekly
warned
that
shortages
particularly plates and structural shapes, will
serious and that the tendency toward inflation will
products,
become
more
more
marked.
production for the first six months will be hitting
capacity limits in most lines, although performance would have
been almost that good without the Suez problem. Inventory build¬
ups
of readily-obtainable products will be more substantial.
publication pointed out that demand for plates has ex¬
The
ceeded
more
supply
for month's.
fierce if 104
Competition' for plates will become
tankers are built by
recently been with
Peninsular Investments.
manufacturers to revise
car
winter weather
It said that
ness
for
consuming areas. Strong demand coupled with exports
are bulling the market.
Inventories of some
some
and
be
November 12th, 1956.
Frank
mills look
improvement still looked for at Cadillac,
of the Chrysler Corp. divisions.
Latshaw
these mills to sell
The second auto company
The
overcome.
Steel
the proud par¬
are
lb.
forced
various
(E. F. Hutton & Company, Kansas
City, Missouri)
for export.
earmarked
their schedules upward.
Announce New Arrival
and
it adds, will prevent United States pro¬
too much steel abroad.
But - emergency
will be
steel
Steel Mills Set
Mr.
run¬
was turned down.
reflects pressure from dealers
cars.
Early in the new model runs, production
handicapped output. Now these hurdles are just
had
-
John Latshaws
inventories,
its cash for in¬
creasing investments in the chem¬
operations
Society
"PM"
cases,
"Hill & Hill"
1955, DR realized
$35 million in sales of bev¬
erage
ical
American Cancer
1,350,000
and
cases
modest sales improvement
of these items.
In
will be "The New
straight,
750,000 (all 1955 approximate fig¬
ures). This year should show some
thus
of
include
"Old
which
sold
in 1955, "Old Sunny
beverages
Crow,"
5,
are
change-about by Detroit
more
about
in
WednesdayJ' Dec.
producers
companies have been giving some producers a hard
originally.
problems
Charles S. Thomas, Secretary of
the Navy, will speak before The
ident, announced today.
an
more
for
To Hear Sec. Thomas
on
steel
attempt to repair damaged relations with our allies
plus
The
pretty
Robert J. Lewis, Bond Club Pres¬
sending
that
ordered
Bond Club of N. Y.
ers'*Club
serious,
.
steady
Club
of New York/ at
a
luncheon to be held at the Bank-
not
These postponements were
due partially to year-end inventory policy.
*
/
The signs are unmistakable however, that Detroit is snap¬
ping out of its tight inventory policy. For instance, two auto¬
motive companies have asked one producer for more cold-rolled
sheet in January.
One automaker took 40% more than it had
on
Bond
is
time. ; Delivery-postponements have
scattered tonnages to other
users.
con¬
stancy in earning power and divi¬
demand,
from
The auto
v
share net of around $3.60. This and
Hiram
steel supply will converge on steel producers
This combination would make the first three
of the tightest in steel history.
r'/,>■*.■
situation
mean
poor customers!
are
one
the
Domestic
majors, which may be in¬
creased; and for stability of mar¬
paying, in¬ drinkers
out of per
1957
needs
the
ket price.
Drinking is a
steady custom, /although
on
into
ducers
prompted to enter this market
area
closing in
are
recurring maintenance problems growing out of sus¬
tained high-level production.
Mill breakdowns and other delays
are cutting into output.
Approaching holidays also will hurt pro¬
duction
efficiency.
This means that delivery carryovers into
January will be that much heavier, this trade weekly declares.
The Suez closing and oil pipeline damage will compound
steel demand from Europe.
Lack of oil in Great Britain and
Europe generally is cutting down steel output and hampering
production." This will be reflected in the first quarter demand
for export steel.
ning
million last year
counting for something
20%.
Earnings of $2.10
unrest
though domestic requirements and the impact of
as
European
While
$500
,
looks
looks
on
a
be
international
week.
This
share.
and
demand
industry. At the same time, the mills are hard put 'to
maintain production in the face of growing maintenance prob¬
lems, states "The Iron Age," national metalworking weekly, this
months of
per
Elec¬
year ago;
steel
by Food Machinery Corp.
should
a
production
Industrial
the
interest in
Distillers grossed
Petroleum output
many
trolled
soda-ash
fractionally, it held /at 2%
was lifted 2% in the week
dipped
production stepped ahead of the past year by 4% and
in the first quarter.
is
\
.
making
advanced 8% in the week as producers
initial problems. Total output of cars and trucks
however, continued 20% under the 1955 level.
overcame
,
and
power
automotive
tail success has been recorded, too, now selling at 25 %. The regular
in multiple packaging, with two dividend is $1 with a stock extra
23%, or three bottles in a box, provid¬ of
2%.
Dividends
have
been
gin around 10% and Scotch (all
ing a price saving over individu¬ steadily paid since
1935.
Cash
imported) around 6%. The major
ally purchased bottles.
position is excellent, management
forward swings are currently in
All
these • methods,
plus
a progressive, and DR chemical re¬
straights, with "Old Crow" leading
widened variety of wares, are of¬ search ranks with- the best.
the flight; and in vodka which has
Schenley
and
National
have,
fered in some endeavor to bring
risen from 1.4% of total consump¬
back liquor drinking consumption more than the other companies in
tion in 1953 to over 5% for tnis
the industry, branched away from
to where it was in 1942, namely,
year.
Vodka now delivers some¬
1.44 gallons per
capita.
It was spirits. These, together with Hi¬
what above $200 miJlion a year in
ram
Walker and
Distillers
Sea¬
only 1.22 gallons per capita last
distillers'
sales
with
everybody
year.
In any event a number of gram, compose the big four. Below
getting into the act—"Smirnoff"
leaders in the industry now think these lie Publicker which has had
by Heublein; "Samovar" by Schentough time getting
into the
the trend has at last turned up¬ a
ley; "Gilbey's" by National Dis¬
black; Brown Forman which has
ward. ";i,
tillers; "Wolfschmidt" by Seagram;
done much better this year than
If this is so, then some of the
"Hiram Walker" from the distil¬
last, and should continue to move
lery of the same name; "Old Mr. distiller shares on the market may
ahead by virtue of its acquisition
Boston" from Berke Bros.; "Yar"
present "worthwhile values.
Al¬
of
the
Jack
Daniel
distillery;
though 1956 swings in this section
Glenmore, a high yielder at 10;
of the market have not been wide,
and
American
Distilling, which
most issues are selling at or near
•poabs 3q pjnoo Aubui sb ddicni
has
traded
narrowly this
year
the
year's
low.
Schenley
has
•••qibap ssajpaau b si
within a 5 point range. A wouldranged (1956) narrowly between
•■ubo
be buyer of distiller shares would
pjiqi Xi9A3 3biji si 'sn |{31
22% and 18. At 18% the $1 divi¬
dend
was
Intermountain Chemical Co., con¬
National
'
*
4% higher than that of the like week
and
whiskies accounted for about
Siopop jno 'pbj diSbji
"
steel
above the 1955 peak.
with
costs
operating
and
up
for
4
and
Panhandle
starting
'
processing.
(of. which
high that it amounts running
totally Ao around
$10
to more than half the retail price; million. Pre-tax earnings running
but
after
years
of
legislative well into seven figures should be
pleading, the tax seems quite im¬ realized this year, with consider¬
movable; and most of the com¬ able future expansion possible. \
from
now
,
tax—a tax so
the
onto
seep
illegal
National-
is
Inc.
Chemical
production
During the week, production of automobiles, electric power
and petroleum registered increases which were counterbalanced
by declines in the output of steel, paperboard, lumber and food
im¬
incautious
of
evidence
uous
membership
and
^conspic¬
division
Another
Petro
industrial
the country-at-large in the
period ended on Wednesday of last week held close to the level
of tne prior week, but was moderately above that of a year ago.
Eastern^ 40% ) which
has plants in Tuscola, 111. for ex¬
bibing, and some have, forsooth, traction of heavy hydro-carbons
placed far too much reliance in from natural gas, and for making
this
vaunted
neutralization
of
polyethylene. This National Petro
repricing respiration!)
Chemical has taken some time to
cessions to
of
the least
breath is often
eral taxes, ac-
in
quality
a
Total
-
industry and government.
Continued
on
page
29
Volume
184
Number
55.90
.
.
The Commercial and Financial Chronicle
.
(2281)
5
/result
over >"&
longish period,"
while: credit policy seeks to pre¬
Wider Federal Reserve Policies
vent
meaningless- and disturbing
y over ...short ; periods.
Later, he puts it this wav—mone¬
tary- policy
is > concerned
with
trends, whereas credit policy must
fluctuations
For More Effective Influence
By AUBREY G. LANSTON *
.
deal with
Aubrey G. Lanston & Co., Inc., New York City
preventing
By A. WILFRED MAY
smoothing
or
deviations from the trend. In
other words, whatever the direc¬
out
In analyzing the current forces bearing
/
'
cost of credit in
witness higher interest rates and tighter
I
;
the availability and
on
1957, Mr. Lanston concludes short
run
tion
may
that, prospects for somewhat higher bond prices and lower
/interest rates
are indeterminately brighter.
Author offers a
program to increase effective money and credit control, to
deviations
—
enviable, unmatched
achievement record, which includes tax improvement,
economic
an
that
Fed, and Treasury
Opposes proposals for
of Fed's portfolio needs.
parts
a
For
time, there have been
the "tightness"
That is to be expected,
because
come
about
of money.
when
we
not
are
obliged
f f
lence.
of
in
which
his
com¬
ble,
lar
per¬
when
taken
are
face
at
and
G.
Aubrey
which
erected.
been
regret
The
to
that
of
has
been
of
this
that
One
envi-
Two
outstanding
life and
on
a
on
have
a
ventures,
amount
ment
form of government,
of
initiative
tive
encourage
amount
by
whom, money and credit shall be
managed and allocated among us.
prise.
>
ably
the
of
borrowed
'
.
initiative
/
and
enterprise
dividuals would
Treasury and Federal *n"ly prescribed
be
,
.to dealwith
Reserve
policies-in
or
in-
by
of
correspond-
Labor
discouraged.
Cogitate with
somewhat
Such, I believe, is the philosodifferent manner than may have phy of President Eisenhower. He
been expected of me./ I want to-v and some of his principal aides
a
the fundamentals that
discuss
involved—now, next
long
as we are
free
country.
moments,
thereafter, to set forth
why's and wherefore's, as I
these, of the near-term avail¬
ability and cost of credit.
the
see
On the basic issues of the
agement
think,
our
of
minds the
been
based.
to
set
firmly
concepts
life
economic
credit,
and
money
need
we
in
this
the
If
man¬
on
I
in
which
country has
-
have
concepts,
Defines
stick to
we
this general
try
improve
to
arrangements.
merits
The
do
well
set-up while
some
of the
Some
improve-
needed.
are
to
however—indeed, it already has—
to
as
whether
should
we
not
pretty much junk the Federal Reserve
System's
tenances
weaken
that
the
efficacy.
suited
should
pretty
would
of
management
and credit; or, add appur-
money
to
inevitably
Reserve's
If
these
our
be
for
them.
clear
be
in
way
that
the
would
and
power
changes
of
To
life,
me,
such
wrong
are
we
it
is
moves
direction.
They
cannot be made consistent
with the basic concepts I am about
tojmention: Therefore, I think we
must
insist
on
seeing that the
steps that
are taken are ones that
would enlarge the influence of the
Reserve and cause our established
methods
and
institutions
to be•
*
the
An
address
National
Board's
Louis,
1956
by
Mr.
Industrial
St.
Louis
Mo., Nov. 15,
Lanston
Conference,
1956.
St.
.
C
seems
fair
-
to
/m
Federal
Reserve
policies
j
and
are
suppl
but
which the
money
demand and supply
and
credit
arise
Economists
and
its
the
as
that these
say
a
nati
ings
it
that tends to obscure their precise
as
I can
I
in
afternoon.
distinguish
by
the
want to
my
be as precise
remarks here this
Therefore,
I
wish
between what I
term,
to
mean
"monetary
policy,"
and the term, "credit policy "
W.
Manning Dacey, Economic,
Advisor
don,
to Lloyd's Bank in Lon-
manages
distinction
de-flationary,
to
make
such
a
admirably in
his
book, "The British Banking Mech¬
anism,"1 I shall borrow from him
so
at least anti-inflationary, category we
or
*
4
*
/
-
•
•
Expansion is
as
a process
wholly distinct from inflation..
Uncertainties of government guarantees of
well as degree of effectiveness.
activity,
as
/
v
to speed
Income tax trends.
'
Really
*
<
"Built-in"
and
One-Way ?;
'
>•
Above the cross-currents, the two major questions
persistently
stand out:—Do the guarantees of present-day government inters
ventionism, active and potential/actually constitute a New Era oi
one-way inflation?. And does the $35 billion Defense bill-con¬
stitute
some
tute
a
unassailable bulwark, or on the other hand, might-it in
an
way
sometime disappear, or perhaps at least merely consti¬
insuring the present rate of activity without raising it?
prop
The Historical Record
Empirically,
on
the historical record, the "quantitative mani¬
festations of inflation
/
the shorter-term have
over
never
run
on
a
one-way street.
We should remember that after the 1920 peak fol¬
lowing the First World War it took 21 years and another World
ing decline.
are
still
price level re-attained that level from the interven¬
Some commodities,
priced
below
despite the long-term
1920,
and
Continued
School
inflation,
1937-'38. Jn France there were
intervening price falls, namely monetary appreciation in
drastic
•Excerpt
tor
from
Social
a
lecture
Research,
the
in
New
series
York
"Your
City,
Nov.
on
Investments"
8,
page
at
the
41
New
1956.
is
turned
around
bit.
a
As
stands—interest
-J?Mrsed #nd, perhaps therefore, jt
ls exCJluded from net. taxable mcome.-
with
meaning.
con¬
of the taxation of corporate earn¬
to
that sometimes we use such terms
a degree of interchangeability
chronic with the
The nation's great productive
capacity, especially in peacetime, with overproduction particularly recurrent in some industries,
Z as textiles.
•';//;• ,Vv
*■'' /"/'•*/•■>'■ /v-;
/"•'
paid (as a .re¬
the whole shooting match as the
turn on borrowed
is
workings of "monetary policy" or lu " 1°n ■„/rower capital) fls dis¬
call'u
"credit policy" or of "monetary
and credit policy." It seems'to rne
on spiraling prices along with
politically strong groups.
need
we
<
morg
Stimuli
oi'
international crises.
and
war
War until the
?
Well, imagine that the incidence
of
are
refer
that
save
of the arrangements out of
a part
to
of
part
a
been termed a demand for
savings that exceeds the available
Policies
-
Let
that
L,ei
J?
CANADIAN
„■
-
stand.
ir}ai provision
a ™a|-ter of equity,
Pai/!on
!al (dividends) in the same
that
ls, since, both jn emst
'
let
caP*~
amount-paid
net
net
taxable
taxable
in
income,
Then,
office.
and
recently mailed
to
The report reviews explora->
results.
Pipe
It
also
summarizes
and
financing
Lines
position
T-imiteo
plans
in
of
which
Canadian Delhi is the largest shareholder.
•
WISENER
arrangements, the
borrowed
capital
actual
cost
would
not
First, he says that monetary policy is designed to secure positive
attractiveness as a part of the
capital structure would be mate-
of
LIMITED
,
consist
^
be
our
Th vns-Canaha
ration.
such
progress report
present
tained, in the hands of the corpo¬
Under
a
the
from
too.
PETROLEUMS
'
activities
the
would
DELHI
•>
tion
paid
dividends
income
•■.*?/.
through
way:
exclude
us
.
shareholders by the company are also available
and dividends represent disbursed
earnings,
"
Copies of
treat
i
for that purpose.
increased,
but
73
COMPANY
AND
King
Street
West
TORONTO
its
L.M.TED
I
\
before
Conference
v
?spcc;ts ha™ contributed to what
Credit
workings of Treasury
controlled.
v
question is going to 'arise,
It
Monetary and
.
The
cold
moment,
add
and
as
'
arrangements
would
we
capital
capital structure.
minds of all people.
consistent with such
are
borrowed
forces
the
!
1
attractiveness';
acceptance
list the following:
may
to the President by the electorate paid on the risk capital (dividends)
was
partly
an
endorsement
of must .be ■ included
in
the
net
such a faith in the innate capacity taxable income.
These provisions
of the individual. This kind of a decrease the
comparative cost of
mL
we
a
tion of corporate earnings.
philosophy needs a still greater
implementation within and
throughout government and in the
rate
Antidotes
of
able to maintain
generally prosperous
It will take me but a few
relatively
strength, with its impact
In the
credit
on the effect of a somewhat diffcrcnt arrangement for the taxa-
wa!y
a
we
easily.
for
me,
or
foot-hill?
national defense needs, seemingly
The
tinuing
Currently, the interest paid on
life; to attract new adherents borrowed capital is a ,deduction
to it.. It is to be hoped that the from corporate earnings that are
overwhelming approval just given subject to tax. "The return to be
and for
year,
and
so
a
have sought'to faster such
are
and
the
limit¬
a
major peak,
a
following:
in
rather
money
dramatized
be
perhaps at
Increasing segments of the population getting on the inflation
"escalator," through subsidies and otherwise—and liking it.
Moreover, from the
managing
can
the
wages; and pressure by other
^
For these reasons, I have elected
standpoint of
the side of
on
the mandate, politically moti¬
vated, to preserve the nation's activity, through full employment
policies and government interventionism.
..rilT11
maiy be needed.
"modern"
The
respec-
capital
now
In the first "pro-" category we might
inflation
earnings will vary considerwith
differences
in
the
their set-ups.
flation?
May
list
Yet the tax treat-
their
Wilfred
of
point of view of the owners of
A corollary, basic premise has these, businesses, there will be a
This"can be a matter of the great- been that intervention by the gov- difference in the amount of earn¬
est importance to you,-and to all - ^rnment in the choices to be made logs after taxes that are available
Americans. Therefore, I hope that/
.^he individual, and in thecori- for disbursement as dividends,
you will make it your busness to>-^uc^
business throughout the r The unusual force exerted by
country, must be held to a mini- this aspect of our tax laws on the
take an active part/ You can sup¬
ply leadership and action. Both mum; otherwise the exercise of scope, and nature of the problems
:\
A.
conceivably
to
or
shall
the
From
are we
mere
a
How
total
same
capital,
"inflation" factors fac¬
stimulating and those retarding effective in¬
earnings.
with
force?
mountain,
possibly
corporate
applicable
amount
enter-
and
less
be found in the
engaged
before taxation.
of
the exercise
by the individual of a maximum
and
example
the
review
us
price level,
of
corporate
of
in
vestment
as
might have identical net earnings
re-
way
of
similarly
phenomenon often tended
concept, today, tied
escalator clauses, it is a taxi
academic
an
ing the intelligent investor today! How shall
we appraise the
importance, degree and course
of inflation as a long and as a short-term in¬
the
these effects is to
but
Let
tax
strong forces that
swirl throughout the
economy,
sometimes, to our dissatisfaction.
achieve-
we
to
power
an unmatched record
in such goals.
designed to
another
debate about how,
an
because
power
far-reaching
so
of
many
of the simi¬
have
we
basis
inflation
wages
^ ^ece^ives and inequities that
exist and increase the
his
and
collectively,
prosperous—as well
be
real
ment
we may
threshold
the
on
major
ac-
and
lied, predominantly,
vance.
be
needs
in
free.
be
the
be
to
employed for such a
it is rather that its im¬
are
"inflation" may
continuing timeliness as a
investor's policy. Through bull and
driver discussion item.
is .not
the
views of
its
ne keeps one
weather-eye on this reassuring bulwark to his position. Whereas in past"
n
Credit
think it must be included
of achievement
except for those
they might ad¬
seems
his
Money
This
that
treatment
whose self-interest
Altogether it
aim to
able, indeed
I
and
public's
about
riallv diminished.
11951,
Hutchinson's
University
Library, Hutchinson House, London, W. 1,
Lngland.
*
.
bear market movements
fol¬
that I
things
stand.
Taxes generally are
high.
High levels of taxation multiply
enjoys
freedom
to
subject only to a willing¬
Historically,
the
on
to have
appear
Some
merit,
lack
say
some
pacts
rights of his neighbors.
to
as
^
from
with
the
be
purpose;
are
viewed
Lanston
we
*
choices
and
Individually,
value
should
society
a
believe
1
I
he pleases, to make
as
include
the
doubt
no
times
Taxation.
eco¬
are,
individual
to be considerate
ness
the
of
freedom;
cordance
means,
even
the
decisions
plaints appear
quite
plausi¬
suasive,
would
be
can
Policies
country
follows:
people represent
live his life
Some
they
I
there
conscious factor affecting the
to
this
as
However controversial
be,
component
lowing:
the
serve
other
monetary policy? Here,
of
views
probably
Taxation
concepts
of
maximum
in si¬
these
of
Our
lam
e r
life
believe, about
ac¬
nor
/glad to say, to
basic
nomic
and
customed,
s u
The
shoe
the
pinches
trend.
disparity
Basic Premises
"tight"
is
money
to
better able
public interest,
some
the
are
exists.
complaints
that
this
week reported that
average
< ;
prices in October set a record high for the '/'<•
fourth time in five months; and the President's new eco/
nomic policy chief, Dr. R. J.
Saulnier, in an interview
depicted inflation as both an immediate hazard and the
country's No. 1 economic problem for some years ahead.
is monetary
policy, but it is
only a part.
What
council and selective credit controls.
economic
new
from
AND DEFLATION?*
—
Government
consumer
other words, credit
policy is
important part of the whole
still
transfer of Federal credit activities to the
/ recognition
INFLATION
The
In
an
permit Federal Reserve to continue
HOW SHALL THE INVESTOR DEAL WITH
the
trend, Or the degree
by which it is sloped, credit policy
must deal, perforce,
primarily only
with smoothing out or
preventing
but beyond
money,
of
The
dividends that could
.
,
a:
amount of
be paid
i
COtllltlHSu
_
OTt
_
_
ft
_
om
on
OU
•
Affiliate:
MACKELLAR, WISENER
LIMITED
Members The Toronto Stock Exchange
0
The Commercial ancl Financial Chronicle
(2282)
putting thb industrial cart before
Puerto Rico Investment Profits
tne
reveals
Administrator
Economic
always
publicity for
Developer Moscoso relates:
,,
.
,
a
what has* been happening
New
York.
This
year
the
on
in
income from
industry
Puerto
in
Let
idea
some
what
turning
from
of
You
economy
point
agri¬
an
cultural
to
tion.
an
80.
industrial
to
means
Teodoro
have
Moscoso, Jr.
to
_
"wV have
Rico.
.substantial middle class. We have
had very little to offer but the
will and
ingenuity and energies
of
our
people.
Our effort at self-
help was conceived, not in Washington or New York, but in Puerto
Rico.
It
actually
only 10
down
:
build
years
from
how.
literally,
our
own
it's
a
10
States
to
bootstraps.
came
the
run
have felt,
we
we were
strained
way *
Nobody
years
if
as
got under
ago.
the
For
tugging at
Believe me,
kind of
position,
hard to hold for 10 years.
Bqt
at least, something
very noticeable has begun to give.
now,
We feel that
an
have
free
rent
factories, lor
managed
people to fill the jobs of
and
ural
promotion
frei^ht
seaboard
and
we
nac-
geographical advantages
have,' such
we
rail
rates
of
cheaper
as
the
than
eastern
th(T
t
United
States,
laboring population especially
adapted
to
all
sorts
of
assembly work that requires care
and precision.
a
Tbe
■
;
school systems in
intensive
jjave made the most of what
populato raise
Hemisphere with the
purpose
of training our
express
For
with
industrial
an
illiterate
greatest
inducement,
and
is
most
one
misunderstood,
f-ax exemption. Puerto Rico has
no
election of the United
Government,
no
voting
member in the United States Con-
an
gress,
the
so
United
States
col-
You cannot build an industrial
society on a frail and sickly peo-
a
triumphed over the communicable
diseases, typhoid, dysentery, V. D.
They
are
as
insignificant from
That
represents
successful
a
public health standpoint in Puerto .stance, if
Rico as they are here today. Ma- ?corporate
laria once held the south of Puer- 500 in the
to Rico in
Today it is
a
so
devitalizing
completely
grip.
eradi-
Rjco
profit
compared
to
Tax
is
exemption
America.
from
Many
veterans
not
special
to
to
new
classes,
certain
indus¬
tries, receive tax exemptions of
varying degrees in the
United
States.
The f whole
theory
of
American corporation and income
taxes is based on an exemption
plan—if you don't make money,
you're exempt. Tariff-schedules
tax
Tax
Exemption
it,fair,
though? If
exemption we were
industries
from
away
Schenectady
or
other
Test
not fair.
But
New York
dustries, and
than
more
fore
a
we
mere
firm
can
it
establish
that
not
in
one
the
ally
asks
is
of such
Puerto Rico
overcrowded
world.
I've
the
one
not
so
in
most
striking
illustrate
that
if
the
the
of
our
long ago
com-
statistic
this:
He
continental
United States had the
has
the most
of
areas
Chancellor
to
seen
fihowed
is
land
The
University
puted
to New York.
concern
same
den-
°yo7ciu\dnfit arIo^rtt° R,h°
nonulatln
fts^four borders
entire
in¬
of
'm
tv,
#
quite
an
operation
net
your
taxes
alone
item
For
profit
in- i
after
were
$17,-
United States, in Puerto
wouid
be
$25,000.
If
at which
ca^ed that our School of Medicine
kas. bad
send to the continental^
States.
If
there
is
1%
Little Puerto Rico's
industrialization
represents
of
less
normal
than
program
one-half
continental
.
of
United
States industrial expansion, which
is far less than even a proportion¬
ate
our
were
get
„
some
facing when
self-help effort got underway
lOjears ago. The other handicaps
were
,Mr"whFohaS',?rltUra,1
a
The question is often asked
me,
how do you start with nothing and
build up so many new industries?:
What do you use for bait?
;
There is no secret about how.
we've done it and how
we
the manufacturer
book?
Jie story' sb°rt and to
p
rn
risk.
So
some
the
government
bottles
for*th"" eC°n0my
n
built
plants to manufacture prod-
n6
W6
CemCnt
u
Puprtn
Rif
ivPrv SUZ
n
Have
nrnmntp3
themPu
f
to continue. At first, nothing would
ipduce private capitalto take tb-
inaugurating? iSSctorv
0
propose
s
s
*
affixes
times
are
a
survev
made
bv
a
this is the
for
we
our
had
to
leaders
start
never
the
fac-
relished
the idea of government operation
nf
time I
giving
am
public
for industry in the U
cZTorZ ^
By
to
S
findings with
n
the"
"Because,"
ctf&ZS
any
Stricken Land.
wonder that thousands
people
left
climate
of
land
to
the
their
croWd
re-.
soft
beautiful
into
of
n o r
hf!p
the
r m
through comparatively
harsh winters and snmmers?
Fo'r
bv Mr. Moscoso before the
Rotary Club of New York, Nov. is, 1956.
It Builds
cnrinpliim
Y
.aCt°-y
notes these contrasts:
"J
|latesSeP?eports
stateside reports,
Rico
pCerto
lhat
Puerto
s
°WP„'1IndeusetrilsPrWet°havet £ ele_ctro.ni.cs indftry in, the Stat?s-
Si^fTctodes ^er sLZ, relT in^o"
them to industry with
tion to buy.
You
an
op-
might call that
compared to 6%
in the
whole
America, and before
world,
the
of the United States.
learn
to
do
help
to
*-
impressive part about what
it that we have done all
this in association with the United
States
free
and
we
doing it
are
as
a
people,
and the two are not
least : incompatible.
The
the
learning from Puerto
are
is
of
inestimable
the United States in
value
^
I
realize
values
such
to
world dan¬
a
gerously • divided
between
political philosophies.
two
cannot be
measured in dollars and cents. But
Puerto
Rico
has
dollars
a
and
to overlook.
Buys More U. S. Goods
.
It
has
Puerto
flows
for
been
estimated
that
for
million dollars added to the
every
Rican
direct
$500,000
economy,
the
to
purchases.
We
lion
is
United
still
are
States
a com¬
true
It is
spirit
living
a
people. Currently Puerto Rico
buying
worth
and
S.
-•
terms of the
faster
shriveled
Example
to
Underdeveloped
Lands
distances
that
we
in this
and within
room
talking
airline
schedule
of
and
United States constitution, with a
there
is
common
common
this
of colo¬
and
under
its
revolt
the
and
world,
its
status
In this
era
violence
Puerto
Rico
peacefully
the
and
and
currency
defense forces.
nial
own
all
in
the
in
there,
tells
us.
we
the
distance
here
But
in
tend to
between
1,400
miles, a
long distance south and out into
the blue Atlantic. Subconsciously
as
tendency
a
associate
to
distance
with long
tropical isolation.
In Puerto
over
achieved
and
few min¬
a
somebody
have to go
thinking,
general
there
States
to
we
ready to believe what the
think
a
a
it, we realize all right
pick up a telephone
can
be
are
our
is
have
such
it
minds upon
Common¬
Rico
at
challenges human
ability to fully conceive of the
new possibilities.
If we focus our
wealth,
a I self-governing
free
state, associated with the United
Puerto
the
past. Faster
communications
up
that
pace
we
An
dollars
in
year
is a tendency among all
wherever we may live, to
us,
of
imperialism.
a
There
think in
Puerto Rico. If
American
million
goods
utes
Rico, too,
journeys
have had
we
trouble
reorientating
Many of
us
ourselves.
remember when New
York
act of
by
States
warmest friendship.
By
Congress in 1952, the United
entered
into
a
compact
with Puerto
Rico that established
Commonwealth
branches
rectly
to
of
the Puerto
all
are
was no closer than four
day?
steamship. It is not easy to
readjust to the simple but very
significant fact that the distance
di¬
is
now
real
That's
feelings
United
States
American citizensblo
are
only five and
to¬
and
best
ex¬
It
sons.
worth
means
businessman
Puerto Rico
it
few
a
to
Rican businessman
it
is
especially
of
the-
highest
United
our
men
States.
What
is
notable
were
that
volunteers,
in
percentage
the
York, in
in
less
him to
person or
time
than
cross
time between
wil
be
San
cut
will shrink to
Juan
the
world
than
itself.
Wc
underprivileged
in
the
know
United
that
countries
of
in
Puerto
the
influences
the
I
eo
are
influencing
Rico.
are
at
Of
again. It
three hours.
mere
a
are
Slates
is¬
and New
half
in
factory executives to
parts
take
In a couple of years, when the
jet planes go into service, travel
They
other
to
-
ed
in
used
his 35-mile-wide
implications
attention
reach New
with his goods,
it
The
more
to Wash¬
go
can
in Puerto
Rico, socially, economicallv and
politically,- has possibly attract¬
happening
reach
that the Puerto
means
land*
York
-
It
can
in less time than
him
ington.
once
compari¬
tourist
or
now
took
where 30,000 Puerto Rican troops
but
half hours.
that the New York
emplified, I think^, by the Puerto
Rican record in the Korean War,
fought with outstanding bravery.
Puerto Rico's 65th Regiment not
only had the highest number of
casualties among American troops,
a
Five and One half Hours Away
accountable
Rican voters.
Rico's
the
ward
Now
status.
government
indirectly
or
Puerto
of
for similar firms
Continental U.
half
a
of
United States.
refutation of the Communist cries
40%
That
43
electrical - electronics
th^ Proceeds we built more manufacturers show a net profit
bulldl.n«s a.nd offered them °l 33% compared to 5% for the
j
P
vey
^hafin tte'chemTcal^lndustry
Government Always Sells Plants
Is
tenements
•An address
Munoz
ab°Ut indUStry than P°UtiCS"
house, and the
It
Governor
slack.
before Latin
the
induct™
hovfrs Pat Pi67rcomDared
now
5 01
report,
relation to net sales
Bootstrao-snonsnred
n
up
all,
can
see
spirit of
Offirp
nnr
Economic Research. Incidentally,
I ' -T ,®°ld them' °UJS ^ n?* ne* Prol«
Socialistic government and al-
though
tories,
mak
i™the
1thewofit
St!tes Pve Sken t^
f report I revived ^
thera. It is interesting to note the Stateside quarterly report of
to the p'eopfe foT dx monih
nf
that+the4faCl°ries ^-ere S°ld \Vhe, the Federal Trade Commission
the vear^ ihL
inff
ihTI
I most outspoken critic and political and Securities and Exchange
surjobless, and a pn^fni f1 ^ f ?^onent of the. Administration. Commission, the Puerto R
and
complete lack
of factories to take
country
-
The
of
share.
it
,
v,
vm?
you 11
above
and
a
they
it must
enterprise is a
foresaking any site
Perhaps you'd like to know
$53,500 after taxes, in Puerto'
something about the political na¬
Rico it would be $100,000. If it
ture of Puerto Rico's government.
were $485,000, in Puerto Rico it
It
is not only unique but it is
would be a million,
something that every American
can
take pride in.
It represents
- . Much Higher Earnings . ;
one
handkaos
then
iiancticaps, tnen
dea of what we
all
have given that
cents value to the United States
lip service. Eewhich no businessman would want
gain tax exemp¬
the examiner gener¬
for a letter from the
the eagle.
entire
W°rld ^mics"365 W£
' PaP6r' ^ frompro£it figures to the
out
of these reports.
lnPiandr%7dUraeIcouni'etoCfrOW,h6d ^h6n ""m T™ °o 3 -g°in? According to this latest
info
countries
globe
itself.
its
United
doubt,
any
there,
what
was
tion in Puerto Rico it has to ap¬
pear
before an examiner for a
special hearing
five
trainees
3,400
have
come
to
Rico
to study
the great
changes
that
are
taking place
Rico,
runaway
than
Rican
last
Puerto
enticing
in
want
Puerto
the
different
99
the
over
nations
have announced
we
don't
we
from
a
lesson, which the underprivileged
Macon :or any
the United
or
community
and
In
more
through
States, I would -say that
that
years
Four
training
Four visitors
shared by the
Point
for
States
governments.
in
Severe
Is
help itself, has become
United
were
result of all that
this migration matter that
Point
no
whose expenses are
to
specifications.
our
a
.
on
receives
ground
20%
here.
s
ing
which
lects no taxes from it. That would
Governor of the industry's home paratively poor land, but I won¬
be taxation without representa-* state
der how many American business¬
certifying that the firm is
Ple and the absenteeism that al- tion, a practice so repugnant to not abandoning an operation in men realize that we buy more
United
ways accompanies ill health. So the American people that "it that state.
States
goods per capita
we set UP health standards to equal sparked the American Revolution,
than any nation
in the world?
r
Another question is, will Puerto
those of the most progressive areas
Puerto Rico, however, has its;
That with only two and a quarter
Rico's
industrialization
program
*n America. Today anybody can own
corporation
and
income
million
people, we bought $300
make
inroads
on
the American
drink water anywhere in our taxes. It will waive these and
million more from the States last
economy? That would be as like¬
Commonwealth with every assur- other taxes for a 10-year period
year than Brazil, the largest coun¬
ly as the swallow posing a threat
ance that ^ is PureWe have for any new industry that meets
try in Latin America, with 60 mil¬
United States for samples of matugging we are doing what a lot larial blood for study- The life
r f
people said was impossible— sPan of the Puerto Rican has inwe
actually are pulling ourselves creased from 46 years in 1940 to
In theory, Puerto Rico's tax
up off the
ground, out of the soil ^4 today. .The death rate is lower, freedom and industrial incentives
of an agricultural
economy into than that of the continental United sound fine.
But let's face it, the
[he more affluent atmosphere of States.
*
real acid test is this: How are our
industry.
/.JV.'V'v:,'1
Twenty-five cents out of every 450 Bootstrap plants faring profitAgriculture, of course, will al- dollar the Puerto Rican Govern-- wise? *
;"
ways be important to us, but we ment spends goes for public health,
More important: How do they
must have
industry, too, for rea- and 25 cents more goes for public compare to U. S. industry in this,
pons that have a
very direct bear- education.
perhaps the most vital statistic in
as
Communism, have been watching
with great interest.
Puerto Rico,
netting
4%
new
vote in the
gtates
name.
resources
great wealth, either, although
are starting to built up a very
we
would^ suffice.
industrial society.
picturesque
natural
no
fipeak ofin PueiTo
no
We
young
tion Bootstrap
is more than a
We
problem
single
no
JjJera1cy raleuv°!? one,of the
t0 n^a+i!y
We also established
us.
Opera¬
us,
on
fune^rVCi i°™
the Western
economy
To
can't
this
and
world, the ones who are most sus¬
ceptible to the blanishments of
beginning to
push, furniture-making, they are
salaries for technicians
brought to Puerto Rico to initiate
operations.
Bootstrap, our economic
drive, but every economy
as
be nourished from the roots, and
the roots are the knowiedge and
abilities of the people.
you
every
just
are
ment. of
erahon
try
me
give
though.
we
-—
Most of America knows about Op-
agricul¬
there,
industries
which
periods,
partial
reim- are simply tax exemption in re¬
the foreign product
bursement of ocean freight for verse
is
essential machinery
and «quip
equip- taxed and. the domestic product
ment
ment and even partial reimburse- exempted.
reimburse
'
action
of
we
can
offered
„
recognition that
a
one
limited
1
We set out to solve our
course
Rico
ture.
to
..
uita
them
each
baby sitters for ex¬
large
scale - em¬
ployers of labor and heavy capital
industries
we
have
occasionally
and themselves.
with
surpassed that
from
.
oi
of
most
most
stop
new
ecutives.
pronounced ef- survival, of feeding
pronounced ef- survival, of feeding their fa
their fa
very
.
fect
sman
our small
ng io
happening to
we
schools
(3) tax exemption test
prevents entry of U. S. runaway firms; and (4) under¬
privileged nations are learning from Puerto Rico.
is
it, and there's
for
give thern, financial
and
otherwise.
We
make loans,
train
workers,
supervisors
and
executives, and we even have a
department that finds homes and
from U. S. exceeds all other nations;
*
offer
help
(1) a new
plant emerges every four days; (2) imports from U. S.
exceeds Brazil's by $300 million, and per capita purchase
What
don't
We
31% and U. S. 8%, and electrical products 33% and
island has
for
taker
a
We
profit to net sales for 400 promoted
"Bootstrap" firms is about 16% compared to 5% for U. S. A.
and a breakdown of this shows, for example, chemicals for
5%, respectively.
and the industry that
use
complete.
the first time that net
P. R.
shows 10% profit compared to 1%
in the States. And ih an industry
area
would have
Economic Development Administrator, Puerto Rico
Rico's
—11% net profit compared to only
2% in the U. S. Apparel industry
to each
By TEODORO MOSCOSO*
Puerto
Leather products in Puerto Rico
horse, but we know what size
and type of factory is best suited
Thursday, November 29,1956
...
a
enormous.
great
open
course
work,
many
branches
other
too,
and
not underestimate the human
Volume 184
Number
5590
.
.
.
The Commercial and Financial Chronicle
t
factor of executives
enjoying hav¬
ing a branch to visit where he
can
spend
at any
ticed
the
a weekend on tne beach
time of
the
worse
north, the
said that
is
in
plant inspections
Puerto Rico.
When
I
started off lacking in
natural
resources, I overlooked our
-always
climate,
but
industrialists
you
overlook
The
don't
taken
it.
you
inquired
.
companies
have
-in Puerto Rico
why
opened
factories
companies like
—
break
.General
Electric/ U. S. Rubber,
Remington Rand, Union Carbon
and
Carbide, Svlvania Electric,
Textron, a n,d Carborundum
-
you'd
probably .get
from
answer
But
I
each
small
scale
much
that
here
it
is,
portends
all
of
us,
venture
to
that if
say
peak of our
'economic drive instead of just at
the turning point, and there were
ample
tide
jobs^ in
would
Puerto
be
Rico, just
would
the
leaving
continental
corning
to
because
now
executive
and
back to Puerto
come
is
right
the
be
as a wave of
Americans
Rico,
reversed
Ricans
<New York to
Rico
Puerto
Puerto
of
opportunities
the
created
industrial program. Being
there, as travelers or businessmen,
our
they
getting
are
America
at
know
crossroads
a
"cultures.
'America
to
Norti
meet
in
of
and
Puerto
a
Republican Governor takes over
and in Montana. Neely and
be succeeded by Republicans.
reflect that bv
the
two
South
will
prevail.'
Murray would
If
they should pass away before Jan. 15,
however, a Democratic Governor in either state
would
be several
tives
1
a
lot
to
control
of
tse
Fen^te, wnuM
Eisenhower
and
the
generally.
The
so-called
Liberal
Democrats
It woula not
only mean
supports which have been so
crats
also
propose
a
a
return
so-called liberals want
wanted in order that
in. awarding government contracts to break down
are
to tne nwh rigiv
was
of
any racial
in
as
t^e
United
Apparently the so-called liberals simply want
something to
agitate about. Agitation is the only purpose their
efforts can serve
at this late
price
highly controversial but the Demo¬
stamp plan by which the farmer would be
date in the march of
history.
guaranteed
a price for his production and the
surplus would be
given away to "needy" people. There would be little or no
effort
to hold production down.
It is the contention of these so-called
Form Franklin In v. Co.
Their
of
DENVER,
vestment
with
now
busily engaged in giving
—
Franklin
In¬
program and
BOULDER,. Colo.
Harry W.
Dorris, Jr. is engaging in a secu¬
—
Co.
offices
at
has
1575
been
formed
Sherman
St.
Whittemore,
President; B. J. Muller, Vice-Pres¬
farm prod¬
away
ucts, to charities in this country, to the school lunch
Colo
(Special to The Financial Chronicle)
to engage in a securities business.
Officers are Frank J.
theory overlooks entirely the fact that the Department
Agriculture is
Forms Dorris & Co.
(Special to The Financial Chronicle)
liberals that it is sacrilegious for
anybody to be talking about sur¬
plus farm production when
there are so many needy people all
over the
world, even in this country, according to this gentry.
ident and Secretary.
rities business from offices at
1411
Walnut
name
was
Street
under
of Dorris &
Co.
NOT
A
NEW
Puerto Rico, with its two
and a
.Quarter miUion fellow
Americans,
is
is
susnieious,
and
good
doubt
no
When
the
the
might
nation
There
into
a
gling
about
the
that
/
States,
in
all
•>/
mo^t
it
could
you
had
held
find
nature
that
we
all
of
the
call
great
our
328,723 Shares
>V'<y.
>XvVj
for
of
the
country
factors in
of
the
as
life
our
United
.'.v., *'•
Anheuser-Busch,
incorporated
the
con¬
\
stitution put these words into
the
preamble:
consider
X.
own.
!f Is
it
any
wonder
that
framers of Puerto Rico's new
"We
\
better
no
example before the world
real
'&■
*v.v£ .X\v.y%
i *
powerful
on earth, will
fr«cly enters
compact with a tiny strug¬
land
years,
*
Prospectus.
h
mind
my
United
of
not an offer of these Securities for sale•
The offer is made only by the
or
customers.
in
how they should feel,
-
\This is
,
November 29, 1956
an
important key in det°rmining the Question of whether
they
will be hostile
and
allies
ISSUE
•wyy.,
\
*/ f/'/g J'"'*
9 w
Common Stock
*.vv.v.'.vv.
(Par Value $4 Per Share)
-w
determining
our
'v..
'•X
citizenship
States
of America
aspiration continually to
enrich our democratic
heritage in
and
our
the
individual
joyment
leges;
of
our
collective
and
en¬
its rights and
privi¬
loyalty to the nrinci-
ples of t^Q Federal CnnqtiUition*
the co-existence in Puerto
Rico of
the
two
great
cultures
of
the
American Hemisphere:
for
education;
devotion
our
industrious
life;
valu°s
social
for
in
position,
and
wav
legally distribute the Prospectus.
of
racial
better world
beyond
difference
iotorpsts;
our
these
Blyth & Co., Inc.
••
BURLINGTON, Vt.—Thomas
& Co.
Kidder, Peabody & Co.
Braire
was
for
Corporation.
formerly local
Brown;
Incorporated
Lehman Brothers
Reinholdt
&
Gardner
Stifel, Nicolaus
& Company
&
Bolder
G. H. Walker & Co.
Dean Witter
Clark, Dodge
BROOKLYN, N. Y.—Solomon
engaging in
business from
offices
a
at
A. C. Allyn and Company
A. G. Becker & Co.
Central Republic company
Incorporated
J.
securities
155
mouth Street.
Fal¬
& Co.
&
Co.
(Incorporated)
Dempsey-Tegeler
Opens
Newhard, Cook
Incorporated
Incorporated
Madeira
Company.
Lazard Freres & Co.
Incorporated
Merrill Lynch, Pierce, Fenner & Beane
B.
Braine has b°corpp associated
with
American Securities
Bolder is
Harriman Ripley
I
With American Securities
manager
Lee Higginson Corporation
hone
on
based
principles."
Mr.
may
courageous,
pea^f"!
above
economic
a
the
undersigned
fidelity to individual hu¬
our
man
and
to
the
Jfervor
justice;
our
faith
our
?nd
Copies of the Prospectus may be obtained from the under¬
signed only in those states and by those persons to whom
Price $18Vs Per Share
&
Co.
Hemphill, Noyes
Reynolds & Co., Inc.
& Co.
& Co.
Paine, Webber, Jackson & Curtis
Shields & company
the
firo
Mr. Dorrij
formerly with Securities, Inn.
the
States.
dis¬
^
century there will be 500 million
people in Latin America, twice as
many
they could
crimination in industry.
returning
They have already announced that they intend to
the farm program which was adopted at their
Chicago con¬
vention.
Once it
power
Carlisle Bargeron
conserva¬
loaded for bear.
press
now.
pass
anti-lynching legislation. But we have moved far away from
the need for any such
legislation. There remains a national Fair
Employment Practices Act. Neither is that needed
any longer.
The Eisenhower Administration has
wielded its tremendous
held and it is
highly questionable whether the
Rpmiblicans could elect a Senator in either
mean
difficult to understand
why the
to limit debate
Democrat successor and it would
months before an election could be
name a
It is well
*md
and
inevitably
'
It us
-
Rico, in
'every sense of t^e word.
to
Latin
The
pro¬
West Virginia
Republican
the
at
now
support.
being able to talk for days at a time
piece of legislation is not very attractive.
ponents of limiting debate have yet to show a
single instance in
history of any worthwhile legislation being prevented for
any
length of time through a filibuster. A filibuster
might prevent
legislation at one session but if it has real merit it
state.
were
a
some conservative press
Senator
ill. This, of course presents real concern
fpr the Republicans and will until January 15.
West
very
Key to Latin! America
would
up
.
aged
in
the
y..
holding
prevent filibus¬
they will have
one
*r
On the other hand, the Senate is the sole
remaining legislative
body in the world today where debate is unlimited. And the
*
On that date
them.
even on
for
good
there.
and
A
I
that
is
Two
..
On this
spectacle of
Democrats—Matthew Neely of
Virginia, and Murray of Montana, are
.
.
different
am
dustry to Puerto Rico,
tie.
a
ters.
But if
now.
of
a
one
confident that this mi¬
gration the general public doesn't
know about, the
migration of in¬
by
on
exists
as
would
by the Republicans next year. Whether under
Democratic rule it
wpuld fare any better than it did in 1949 is
something I can't say.
;
. These so-called liberals
have also announced
they will make
another fight to change the rules of the
Senate to
post-campaign struggle for control of the Senate has
ghoulish aspects. On the basis of the election the Demo¬
by two votes, the same situation
they lose one seat the Republicans take over
by virtue of Vice-President Nixon's power to
various
platform
Their plan, or one
very similar to it, was proposed in 1949 and
met with such ridicule that it had
no chance in a
Democratic-con¬
trolled Congress. It would have no chance in
a Senate controlled
By CARLISLE BARGERON
I
Democratic
apparently give away the
surplus to the extent that the entire distributive
system might be
adversely affected.
crats stand to control the chamber
If
-we
The
we
delightful
assure
song.
Washington
Ahead of the News
the
7
to nations abroad. To those nations it
is not giving the food and
fibers to for nothing it is trying to
peddle them for a
From
no¬
coincidence—that
weather
more
have in
we
We have
year.
curious
a
(2283)
l
Financial Chronicle
The Commercial and
8
Thursday, November 29, 1956
.
(2284)
of
Inc.—Analysis—Aetna Securities
Broadway, New York 6, N. Y.
Manning, Maxwell & Moore,
Corporation, 111
i
Company, Inc.—Analysis—Unlisted Trad¬
Marmon-Herrington
Dealer-Broker Investment
ing Dept. (Room 707), Ira Haupt &
York
Recommendations & Literature
26
tend intermitted parties the
to
Oil
Nortex
Resources
—
Booklet
served—Utah Power
area
Salt Lake
opportunities in the
industrial
on
&
Light Co., Dept. K, Box 899,
This
(No. 22)—Comments on atomic merchant
Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
View
—
Monthly
investment letter
—
Pointers
—
Booklet
—
Japanese Stocks
—
Current information
beam
showing
an
and
National
York
market performance over
Quotation Bureau, Inc., 46
a
&
V
occasion
sale
the
it
of
also
may
$100
an
-
man¬
million
issue
of
;
(Special to The Financial Chhonicle)
-
NEW
:
Minn.—Darven
ULM,
Oothoudt is
now
and Mortgage
W.
with State Bond
Company, 28 North
Minnesota Street.
Joins L. F. David
Corporation — Analysis — Schuster & Co.,
York 5, N. Y.
Uarco Incorporated — Report — Kidder, Peabody & Co., First
National Bank Building, Chicago 3, 111.
Inc., 44 Wall Street, New
(Special to The Financial Chronicle)
ST. CLOUD, Minn.—Peter Kall¬
r
.
mann
Company—Analysis—Janney, Dulles & Co., Inc., 1401
Walnut Street, Philadelphia 2, Pa.
has
David
Warner
joined the satff of L. F.
Company,
24
South
Fif¬
teenth Avenue.
up-to-date- com¬
13-year period —■
Front Street, New
Burroughs Corp/s $30
5, N. Y.
The
underwriting
difficult
it
Drilling—Report—General Investing Corp., 80 Wall
Street, New York 5, N. Y.
with
relentless
the
wet
.
blanket
new
South
621
changes.
to
issue market.;
the
over
in
With Scherck, Richter
McNeill
while National
ter v has
of
a
Cash Regis¬
With Perry T. Blaine
$28
:
(Special to The Financial Chronicle) v;."' "
ASHTABULA,
,
.
-
& Libby
convertible
million
million debentures
corporate, scheduled for offering to its share¬
holders on Tuesday or Wednesday.
Vt ^
Dallas Power
& Light mean¬
i r c u m -
throw
r
million of
(Special to The Financial Chronicle)
route
what
stiffening
tending
rates
money
fraternity
days to
enthusiasm
much
generate
Anschutz
these
Olive, members of the
New York and Midwest Stock Ex¬
•:
$10.5
finds
LOUIS, Mo.—Calvin B. Agee
with Newhard, Cook & Co.,
now
Fourth and
ST.
has
LOUIS,
Mo. —George H.
de¬ Ruenzi, Jr., is now with Scherck,
bentures
and
610,664 shares of Richter Co., 320 North Fourth St.,
additional
common
primed
for', members of the Midwest Stock
market on Monday via the same
Exchange.
v
/.'■-
Libby,
America—Analysis—Hill Richards & Co.,
Spring Street, Los Angeles 14, Calif.
ST.
is
convertible debentures due out on
Monday.
j
(Special to The Financial Chronicle)
existing shareholders. Largest
issue falling
in that category is
Co., 1 Wall Street, New York 5, N. Y.
of
Newhard, Cook Adds
Looking Ahead
Tending to bolster the volume
of new capital offerings looking
ahead, are several issues to be
marketed by way of "rights" to
Uranium, A Study for the Investor—Brochure—W. C. Pitfield
& Co., Inc., 30 Broad Street, New York 4, N. Y.
Bank
:
disclosed
an
Equipment
Trinity
Sutro
Triple Banking System—Discussion of Bank Holding Company
Act of 1956—M. A. Sehapiro & Co. Inc., 1 Wall Street, New
York
.
current
Marshall Field & Co.
on
Penny Stocks Worth Dollars in Tax Savings—Bulletin—Francis
I. du Pont
the
With State Bond & Mtg.
Incorporated—Analysis—J. R. Timmins &
Co., 61 Broadway, New York 6, N. Y.
Transamerica Corporation—Report—Thomson & McKinnon,
11 Wall Street, New York 5, N. Y. Also availaole is a report
Y.
4, N.
holders.
through
Texas Instruments,
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
about
$100
through the sale of stock
additional
^
•
Co., Ltd.„ 111 Broadway, New York 7, N. Y.
Over-the-Counter Index—Folder
financing by
since the Fall of
raised
raise
Corp.—Bulletin—Bache & Co., 36 Wall Street,
York 5, N. Y. Also available is information on Sun¬
Corporation, and Cooper Bessemer.
New
Yamaichi Securities
—
new
debentures.
120 Broadway, New York 5, N. Y.
Bros. & Co.,
of
first
it
agement
Corporation—Analysis—Harris, Upham & Co.,
New York 5, N. Y. Also available is the 1956
Edition of 250 Tax Switches.
Broad* Street, New
Securities
Affecting
of
up¬
Stewart Warner
quotations for 137 countries—International Banking Depart¬
Tax
its
On
120 Broadway,
Foreign Exchange Quotations—Folder listing current currency
Income
Mc^ee
Royal
to
the
company
when
million
King, Libaire, Stout
&
shares
provide
million
$217
is
big
1952
Broadway, New York 4, N. Y.
& Co., 50
able is current Foreign Letter.
ment, Manufacturers Trust Company, 55
York 15, N. Y.
Inc.—Report—Eisele
Airlines
Riddle
ship
program
with particular reference to Brush Beryllium—
Atomic Development Mutual Fund,
Inc., Dept. C, 1033
Thirtieth Street, N. W., Washington 7, D. C, Also available
is quarterly report for period ending Sept. 30, showing
table on atomic aircraft program and prospect for British
use of atomic power and impact on Canadian uranium, etc.
Burnham
the
Organization. 100 Broadway, New York 5, N. Y.
City 10, Utah.
Letter
Atomic
and
capital.
Conklin
Bottlers, Inc.—Bulletin—De Witt
General
Pepsi Cola
stock
of
wards
million
4.4
some
additional
Cohu & Stetson,
Broadway, New York 6, N. Y.
Area
gave
man-sized
a
when it announced plans for
"rights" offering which will in¬
a
Corp.—Report—J. R. Williston & Co., 115
Gas
&
calendar
futures
volve
Inc.—Report—Winslow,
Broadway, New York 4, N. Y.
Calendar "
of
lift
Also available is a
Y.
Industries,
Mohasco
mentioned will be pleased
following literature:
understood that the firms
Jt is
the
Co.—Memorandum—Kidder, Peabody &
&
17 Wall Street, New York 5, N.
memorandum on G. d. Searle & Co.
Co.,
the
shares
Socony Mobil Oil Co. Inc.
/
McDermott
Ray
J.
five
stock.
Swelling
Co., Ill Broadway, New
Y.
N.
6,
and
debentures
common
Ohio—Frank
C.
'•
Barnes
Engineering
—
In
Analysis—; Lewis Schindel Co., 37 Wall
able
is
Delhi
-
Broad
Street,
Consolidated
Hanseatic
Staats &
634
par
New York
Rock
4,
Products
Tidelands Oil
N. Y.
Street, Los Angeles 14, Calif.
Dofflemyre
Spring Street, Los Angeles 14, Calif.
Gob
Shops of America, Inc.—Analysis—Bruns,
Co., 52 Wall Street, New York 5, N. Y.
Inc.
•
Co.—Memorandum—William R.
Company—Analysis—Marache,
Laboratories,
23
Company—Analysis—New
Co., 640 South Spring
South
Lakeside
' '■
But
ury
30
York
Corporation, 120 Broadway, New York 5, N. Y.
C. G. Classcock
Glass
on
day. •'
1, Orit.,
lierxf^d j^ Stern,
&
.
&
to
nition
*
highest
rates
long
experience
being
puzzled
not
is
;
ad¬
rates alone but also recog¬
the
of
fact
that
many
will
investors
be
the year-end in
The
market
the
in¬
prime
been
new
and
sluggish
Service
Electric
holding
around
reached
after
and
&
their
Gas
Corp.
*
-
'
CINCINNATI. Ohio—Mrs. Helen
to
economy
raise
million
$120
capital by filing
with
the
of
Now With Vercoe
necessary
(Special to The Financial Chronicle)
Securities
MANSFIELD, Ohio —Henry L.
with
Exchange Commission.
The
bulk
of
this business,
Huber has become connected
it is
Vercoe
expected, will be done in Canada
Public
low
.
the
the
registration
recently
with
issues such as those of
Edison
(Special to The Financial Chronicle)
Wednes¬
Financing Expansion
needed
extreme
Consolidated
v
plans
dis¬
the weeks ahead.
has
«
When
at the mo¬
question
of
a
open
M. Fairley has joined the staff of
Westheimer and Co.* 322 Walnut
is gripped Street, members of the New York
in a period of expansion, industry
and Cincinnati Stock Exchanges.
is willing to pay the going rate
for money it needs even though,
Joins Fulton, Reid ■
;
it naturally does not-like the feel¬
(Special to The Financial Chronicle)
ing of being "squeezed" a bit.
CLEVELAND, Ohio—Mrs. Sara
So
Trans-Canada
Pipe Lines
H.' Owen is now affiliated
with
Inc.," in face of hardening money
Fulton, Reid & Co., Union Com¬
rates
both
in
this country
and
merce
Building, members of the
Canada, goes
forward
with
its Midwest Stock Exchange.
in
posed to close their books against
in
Firm Trading Markets in-
'
It
stitutional
'r'"'"/"
Mexico.
new
the Treas¬
with
the
of
People
ment.
money
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 of Public Service Company of New
—
in
for short-term bills, and
years
mit
r,
with
feeling
^
.,
now
paying
con¬
a
readying up¬
million
$200
right
be
recent corporate offerings lagging
badly, the question uppermost iri
investment * circles these days is
"how to price a new issue to as¬
sure
ready reception?"
Co.,
-
NOrdeman
Orr has been added to the staff of
Lighting $20 million
of
wards
and
.•
itandolph Corpdraiioh^
will
fortnight.
borrowers
r
Canada.
Cdhal
Limited—Report—Wisener
Limited, 73 King Street, West, Toronto
Company
...
Petroleums
different
potential
Baker & Co. In¬
150 Broadway, New York 38, N; Y. Also avail¬
analysis of Reaction Motors, Inc.
an
while
bids on Monday Perry T. Blaine & Co., 4519 Main
for
$10
million of,, new bonds •Avenue. ^V-.?
while
Michigan Bell
Telephone
will market $30 million of bonds,
? Westheimer Adds
v
on i Tuesday
and ; Long
Island
would
there
siderably
Eclipse Corporation—Study—Amott,
corporated,
Canadian
c
issues for market within the next
Street, New York 5, N. Y.
Buffalo
propitious
more
stances
&
Co.,
Bank
Farmers
Building. He was previously with
Wise & Company, Incorporated. "T
through offering of units of $100
levels
release
.
from
syndicate.
The
bankers
Green Mountain Power
Corp.
and many other:
•
Operating Utilities
big4 question
who
may
ahead
for
accept the task
of marketing
projected new issues
of "pricing" that
will
attract
buyers in -spite - of
other conditions-prevailing.
is
primarily
one
NSTA
DEPENDABLE MARKETS
k. i. M.
•
Natural Gas
Harold
Transmission & Producing
tional
N.
TROSTER, SINGER & CO.
Members:
74
N.
Y.
S.
His
Security Dealers Association
Trinity Place, New York 6, N. Y.
••• •
-
,.
Companies
•
B.
T.
A.
address
is
is
DEMPSEY-TEGELER t CO.
Harold B. Smith
line.
of
Committee
locating
2620
Newport Beach, Calif.
a
Chairman
Smith,
Advertising
on
the
Na¬
of
the
the Pacific
Avon
Street,
Coast.
Apt.
B,
Why not drop Harold
Volume
Number 5590
184
.
.
The Commercial and Financial Chronicle
.
(2285)
The
Federal
I feel that the differential in yield
Reserve Board index of industrial
Bond Portfolio
between long-term corporates and
seasonally
production
after
And the Interest Rate Trend
First National Bank
The
i
rate of
,
recent
that
an
,
.
,
■
.
ol fluctuation in Gov.
has emerged
bond prices
as
result
a
ot
tn
to
annual
<Ul3 hii
on-
aoout
if
Under the
if
t
for
?• exPecfJJni Ior ?s.
j
have
business
outlined
S?
activity
"
'
suppiy
and
no
remain
to
us
A
any,
policy
circmustances, I feel
expedient
is
«
? 7s"
turn,
change in the restrictive
of the fiscal authorities.
the second
about
in
little,
i
dm
to
annear
substantial
£55?
de
diminution oftoe
J
remain restrictive monetary policy of the
cautious with resnect to the level
respect to the level
of bond prices. Perhaps they have
fiscai
nnu—
authorities.
au
are
time, when almost every reached a level which is nearing
statistical
indicator
of
general the low for the period, but it
business activity and prosperity is seems to me that more convincing
at an all-time peak, it is to be ex- proof is needed that such is the
pected that there would be some case. For banks in the 52% tax
sacrifice
of
the
price stability bracket, there is ample opportuwhich has characterized our econ- nity to take advantage of swaps
short terms,
,
iQ^f?
ryoo
in
an
which,
of credit
indicate
easing
t
At this
years,
era
ernment
....
,
nf
quaner or
developments dur- but it would seem logical to keep
it is apparent it in mind for future reference.
In reviewing
high set last Decernit is conceivable that it
$408.3 billion
niiar-tpr
acquire moderate holdings in four-five year brackets; and
ponders repercussions of Suez crisis.
ing
exceeds
lion in the third quarter.
for tax benefits;
on
This
Product increased from
convincing proof Governments have reached their
level; suggests banks not concentrate
strike.
economic
have discussed would seem to suggest a
continuing excess of demand over
have
moved
into
higher
ground since then. Gross National
by credit demand exceeding supply shows little likelihood of
interest rate substantially declining in the near future. Offers
but
steel
an
Summing Up
wide.
Moreover,
the
background which we
may
yield curve favors intermediattr*Tssues to long-term
obligations, which may become the new normal interest rate
structure, and indicated continued booming conditions marked
lowest
ex-
would
flattened
more
and
supply
governmental bond price trend, new financing,
indicated interest rate trend, Mr. Winterhalter observes
awaits
141
ber, and
•
.
bankers advice regarding bond exchange
between
the all-time
Chicago
of
In reviewing
and
the
good insurance against
of rates.
to 145 in October; long-term Governments is still too
months; with the
some
ception of the five weeks duration
of
■
^
rose
hovering
143 for
By LE ROY F. WINTERHALTER*
Vice-President,
adjusted
9
related
#—
These
factors
unless
and
change materially
they
I feel we
should not rule out the possibility
0f a further rise in both the rediscount rate
and the prime rate,
Maturity extension should therefore> be aVoided insofar, as possible, and activity in the governomy for some little time.
Whole- in the same maturity brackets to ment bond account should be consale prices, which remained rather ease, insofar as possible, the tax fined
mainly to exchanges for tax
constant during 1953 and 1954, impact. For those who have been benefits
and
the
rearrangement
started climbing gradually in 1955 carrying long-term bonds at a loss, 0f
existing maturity schedules to
and have continued upward ever for one reason or another, here is, freeze
in moderation the attrac-
since.
AJ„.
Discount And Prime Rates
October
In
in
1953
1954.
and
combination
A
tivfyieTds^ailabLinthrMar
to shorten maturities and at the same time effeet'tax savings by so doing. Dur-
they a golden chance
1956,
reached 115.5, as against about 110
Booming business tempo during
the past few years, combined with
the
ever-increasing demand, for
bank credit, has resulted in sue-
term intermediate issues. Of
course, if the present explosive incan only result in
ing recent months, the main ac- ternational situation should destraining to expand tivity in the bond section of the velop into a full scale war there
economic
picwhen production is already bump- market has been the shift from will be little need to
worry about
ture.
Under
cessive raises
in the
rediscount ing against capacity, and explains one maturity to another for the interest
rates
and
government
the circumrate and in the bank prime rate,
the reluctance of the fiscal
aupurpose of acquiring tax benefits.
bond price fluctuations. As a matstances, 11 is The
rediscount
rate
has
been thorities to pump more reserves Individual
and
local conditions |er 0f |ac^
dislocations alobviouswe raised five times in the last one
into the system. Such action would vary considerably, however, and I ready evident in the world econmust adj ust and one-half
years to its present
only intensify inflationary pres- think.it is advisable to obtain the omy due to the interruption of
our
concepts level of 3%, and the bank prime sures.
advice and counsel of a lax spe- Suez Canal
shipments and desof what con- rate has been raised twice in the
cialist before effecting such extruction
of
"Middle
Eastern
oil
dominatin g
iactors
our
in
of these iactors
an
economy
•
stitutes
ti.ve
effec-
stipervi+
Government
bond portfolio,
Winterhalter
F.
L.
I
there
bankers
in
are
who
rho
their
it
is
Treas-
ury Department has found it necduring
recent
weeks
to
raise $1,750,000,000 new money for
current cash needs, and to refund
few, if
very
have
not
do
Government
any,
loss
a
bond
counts.
changes.
It is true that the housing in-
dustry has experienced a substan-
In
this
atmosphere
the
essary
sa*e t0 a|sume about $9 billion of 2%% certifi-
...
.
that
believe
Optimistic 1957 Business Outlook
last year to its present 4%.
cates
indebtedness
0f
due
Dec.
1,
tial adjustment, that there may be
some uncertainty regarding 1957
automobile sales, and that cor-
pipe lines have created
Suggestion
Portfolio
p
J
of
level
market
nr._Ant
_
T
certificates
hill
of
^Anwever roufd
"fvab?vreacttothI disadvantage
porate net income after taxes has ceivably}react to the d i_
g
tended
to
decline
during
the
Slv wE I
third
Quarter
due
to narrowing letened to
this biietiy wnen 1
eon
on
Handforth Associates
JERSEY
CITY, N. J.—Handthird quarter due to narrowing
"*'s "^bmtv"0f
forth Associates has been formed
of
spreads between income and ris1 -nr£rA
nmnnrtinri of a
.rvaouticiues uas ueen xormea
Bills due February 15, 1957, and ing expenses.
Admittedly, these
^®
P P _vtrpmelv with offices at cpnnHfipc Knoir^occ
26 Journal Square
novmrmt
iVmuc*
KHlc
fartnrQ
will
tpnrl
tn
minimi7P
nt
DanK S noiaings
j
a
payment for these bills was per- factors will tend to minimize, at
hPf!.KP nf thp to engage in a securities business.
**•—shor.t-term sector because _otuie John
Handtorth,te Principal.
mitted by credit to Tax and Loan least to some extent, the existing *na.rj-ierm s c
accounts. The refunding offering, inflationary pressures.
However.
a
woiS that restricts its enth
*
• w T >
~
Now Daniel & Co.
ThP rafch nnpratinn rnnsistpri
The cash operation consisted
an
issue of special Treasury
jQsfi
1956.
_
o
mm?
Interest Rate Trend
As
recently
one
as
"
ago ,
year
new pres-
rising prices and may
cause repercussions which at
Present we cannot a c c ur a t e 1 y
evaluate.
sures
*
—
■
^
WASHINGTON,
....
h
At that time, the five-year
about 2.85% as against
today.
rate
was
recent
the
rke
term
3.45%,
and the longabout 2.94% against,
was
roughly, 3.25% now. In analyzing
will
nntp
these ficnirAs
figures, vnn will note that
you
that
the increase in yields in the period was substantially greater in
the
and
short
than it
the yield
has continued to flatten to
curve
such
are
areas
in the long-term sec-
was
As
tor.
intermediate
an
consequence,
a
extent that current yields
from
attractive
more
an
in-
the interme-
standpoint in
come
diate issues than in the
long-term
obligations. Whether or not it is
desirable to confine all Govern-
hrppkft^
brackets
short
aueshonable
questionable,
i^
is
certificate
turity. These issues were well received, and every effort was made
to
factors
There are °ther
areas.
be
considered
this
in
connecticn which we shall discuss
later.
mere
term
higher
be
proval of
and
interesting question. His-
periods of the '30s and
'40s, the short-term rate was consistently the higher of the two.
woy
t
During World War I years, we
:.,w
vaorc
certificates
\xto
indebtedness
of
notes yielding 5Vz%
whereas the long-term
and Treasury
and 5%%,
such
we
two
high rate.
3y4%
certificates
both
have
a
here
due
in
a
of
Truly, time marches
AffppHn*
Anectmg
FupWc
Factors
on
indebtedness,
less than
one
year,
on.
r»i(>
Rate
Trend
0£
opinion
£rend
0f
interest
difference
the
rates.
future
We, as
primarily interested
phase of the economic pic-
bankers,
are
rarely exceeded 5Vz%. There-
on
arp
nc
From
note
so
the
that
heavily
more
so
foregoing,
far
as
our
will
you
economy
a
manv
factors
offsetting
a
influences which
continuing rise in
may
ac-
in
the moment, and
this
surmise, the
if I am right
demand for
credit will continue to exceed the
available supply. With this background, I feel that Federal Reserve policy will continue to be
directed toward restraint in exof credit, even though
pansion
fore
ents.
Nov.
the
Conference of
First
2o,
removed—that ~ we
Nation*1
Bank Correspond-
Bank
lyoo.
of
Chicago,
£0 v|sualize
a
substantial easing of
in
the
future
near
'
of
because
drastic changes in the
iX"PQt
ratp
To
ctrilrt,,re
euard
C.
D.
—
Corporation,
1411
Pennsylvania
Avenue, N. W„ has been changed
t*
nQ«ili x rl Tfa
•
nn(,itinn
t
wn„id
aCauisiti?n
..
of
a
in
thp
The
2V«'<?
iftfi2-5Q
an(J
2Ws
the
of
of
15
Nov
15'
Nov.
modest
serve
attractive yields
years
to
1961
in these
freeze
over
CorP°ratlon has been changed to
H°rne & Company.
F*
New
without undue market exEven though it is possible
npan
PHILADELPHIA, Pa.
Witter
would
and
&
Co.
have
—
Dean
opened
a
,
,T
be
,'^k
,
„
-
„
a Bank Building under
direction of George W.
Schwinn, Jr.
ISO END IN SIGHT-
'
ment Yields
does ail
this
mean
for
to
the
Government bond account of a
bank and to thle management of
this account? There are eminent
yields are in the corporate field
rather than in Governments, and
by man's imagination alone—that's the future
electronics.
An eleven billion dollar
that could double in volume within
Opportunities for
Here
Wide Corporate Versus Govern¬
What
Limited
are
some
a
a
industry
year
decade.
investor^?
of the stocks
we
make markets in,
or
find markets for—
Ampex Corp.
P. R. Mallory &
Amphenoi Electronics Corp.
Packard-Bell Co.
Co., Inc.
Collins Radio Co.
Sprague Electric Co.
Electronic Associates, Inc.
Topp Industries, Inc.
Giannini (G. M.) &
Varian Associates
For
current
quotes,
a
may branch office in the Philadelphia
is
change in the intereset rate trend,
maturity
RranrK
new ^ean VYlwer orancn
these issues could undoubtedly be
to
Hampshire,
is-
posure.
held
Of-
fices will be located in Rochester,
their
period of
a
firm
N^w Hampshire
"ame of ^he First
1960
yields in the
maturity orange, and
investment
would
sues
H.—The
N.
fmir
offer very attractive
intermediate
CONCORD,
moderate
"J^e vear^bracketT
a
Now F. W. Home Co.
rnnsideration
^
of
b'
p mis pusu un, 1 wuuiu u
rf
f
fhi
moderate amounts of reserves may
b£ released from time to time in
compliance with the announced
policy of satisfying the normal
expansionary factor in the economy, which is generally considered to be about 3 or 4%.
The
^rm name of Seaboard Securities
"^rest rate Btmctwe To guard to Daniel & Co., Ltd.
!ivity" In ^my opinion,predominant that reached before there
the outtook be somewhat lower levels
good business is
possibility— business activity, the relation between the supply of and demand
may eventually enter into an in- for credit, and the credit policy authorities who are of the opinion,
terest rate cycle wherein higher of the fiscal authorities.
that we have reached the lows in
short-term rates, as compared to
Under present conditions of sub- quotations during recent weeks,
long-term rates (now considered stantial defense expenditures, Among other reasons, it is cited
abnormal), might develop into a which promise to continue high that yields have gone through the
normal interest rate structure? It for years on account of unsettled
1953 lows in a substantial way,
is, of course, too early to hazard world
conditions,
and
because and that there has been some
a guess as to whether or not this
fundamental economic trends in- liquidation in the stock market to
development may come to pass, diCate, in my opinion at least, a obtain the better yields obtainable
continuation of booming business in the bond market. This is true,
♦An address by Mr. Winterhalter beconditions, it is difficult for me but
the sought-after attractive
far
however
vielc?
others
tor
iin-
fore, is it not a bare
nt
'
on
there-are both opinvolved and, to
somewhat milder extent, certain
timistic
at
regarding
bear
others because it is an extremely
difficult, if not impossible, task
to establish a fiscal policy which
will hp ahsnlutplv pmiitahlp in all
will be absolutely equitable in all
respects.
Nevertheless, business
sources not only appear confident
of prospects for the balance of this
year, but seem rather optimistic
regarding the outlook for 1957.
temper
Interest
There is considerable
will
icy
sorae sectors of industry than on
Yet.. is concerned,
coupon
Government bond prices. If we
could accurately estimate the basic
factors which determine the intetfest rate trend, obviously, we
codld proceed on an investment
policy which woiiild be fool-proof,
Unfortunately, this type of an estimate is a very difficult one to
nr>hif»vp
thfrp
achieve as there are so many uncertain determinants which underlie interest rate changes. Among
the most important of these are
the expansion or contraction of
terest rate
rate
because of influential disap-
pon
ture because of its obvious effect
long-
torically, this is not an abnormal
situation as prior to the low in-
had
was
short rates
noteworthy
is
rates
poses an
-r-»
that it would
the last issue with a 3 V4 % cou-
general opinion
than
that
fact
presently
thn
keep attrition, the "bugaboo"
0f the Treasury, at a minimum,
Historically, this was a milestone
in Treasury financing as when the
3y4's of 1983-78 were issued, the
in this
The
are
lmnn
in
to
ent conditions are more
in; these
15, 1957
income-taxes at
and accrued interest to ma-
par
though the rates under presattractive
even
be used in payment
can
of June
-t
Co., Inc.
simply contact—
Trading Department
Merrill Lynch, Pierce,
Fenner & Beane
NEW YORK 5, N. Y.
70 PINE STREET
Offices in 107 Cities
10
The Commercial and Financial Chronicle
(2286)
.
Thursday, November 29,1956
.
.
markets rather than clear indica¬
tion
low Monetary Growth Rate
And the Business Outlook
when it
a
has
reversed.
ever,
clairvoyance.
with prompt
1953
one
impossible; and calls attention to effect upon business
of
rate
continued
money
for
nearly
Velocity turned down
after turn in business
investor risk.
year.
shortly
■
My topic is
dear to me.
trend.
going into its third year if: (1) inventories become
burdensome with a slight sales drop; (2) plant and equip¬
boom
(8) Only
several months after
I have learned how to "mini¬
years
would
like
consideration
direct
to
critical
these
to
your
recession
a few moments.
(1) In general, I certainly agree
sumptions for
substantial
with "
of
ing stream"
approach
taken by most
speakers.
(2) F i n d
to
a
current
be
reason-
considerable
economists
has
(1) Seems
to
us
for
room
if
ask
velocity
relevant.
is
unlikely
have
sumers
believe
Some
lead
evidence
Some
Some believe this
effect..
little
business trend.
The
not
been
to
t
e
time
of
to
all
able
in
ahead
that con¬
primarily
responsible for velocity upturn of
past two years.''
.
suggest that
meant
if
even
merely
to
To
nicely
over
to
the
go
years,
the credit
the investment ledger.
with
on
the
that
note
—
matter,
in
money
Other
savings
the
cash
even
bank
Vulnerable
or
in¬
risk,
Areas
volves a certain amount of
factors important and
tinder spine conditions of Critical..
Let us assume for the moment too. This is because of the uncer¬
7t2) Business has^
that we- conclude there is some tainties of the purchasing power
import. X helopg
latter
school of "thought as I believe em¬ conserving 'on bank balances.;| * 7 doubt about
monetary factors al¬ of the dollar, as we all know by
(a) Current stress placed by
pirical observation supports this
lowing an increase of $20 to $30 now.
monetary
banker
appear to have bearish im¬
plications, I do this not because I
may
that
convinced
©m
a
downturn is
tive
serious consideration before
view heretofore
reflected
I
in
longer
until
when
banks
(a)
a
clude
is well into its third year,
should look carefully for pos¬
sible areas of weakness.
ther
(4)
this
Recessions
Wl'iat
do
money
turnover and
(1)
I think
do
we
we
not
(c)
cptimum rate of monetary growth
loan
consistent with price stability and
lull employment may be.
(2)
Does
this
stymied and
ther?
can
mean
we
are
proceed
no
We
do
know
how
(a)
as
Money
and
fall
follows:
turnover
with
tends
the
to
business
matter
causal
common
Current
rate
of
(1)
Many factors affect this
including the attempt by
trend
for
costs
intensivey due
of
During
1953-1954
to higher
retaining idle funds.
again
(2)
a
plead
one
That evidence suggests
eas¬
to sustain for sometime
a
a
rising
a
»t
the
Fourth
talk by Mr. Sprinkel
Annual
Economic
Outlook
Conference, University of Michigan, Nov.
16,
1956.
sagging economy, but only with
lag.
(4)
Had
tion to
ease
reversal
from
in June, 1953,
and
Retail
in
trend.
restric¬
brought
about by congestion in securities
which
stock
in
portfolio,
its
recently
stressed this factor when it pointed
out
that the building in which
their
offices
Francisco
located
are
is
in
San
30-story class "A"
a
fireproof structure.
It is
insured
for
over
$6,000,000,
yet
even
though the probability of its burn¬
ing down is exceedingly small, the
largest amount of insurance risk
by any one company insuring the
building after reinsurance is less
than 3% of the insured value.
As
I
have
said
before,
noted
weeks
recent
declines
in
number
a
of stocks due to the international
situation
even
and
spending
aggregate
and
to
re¬
business
v
r
Conclusion
able
be
to
have
We
recent
for
see
always
it and that is why we pay
attention
little
so
in
prices
should
and
rise
the
fluctuations
the
to
Gross
National
Product
diffi¬
securities.
in
amounts in
uncer¬
many
in
small
corporations, have
these
imminent
tbe
flected
but
neither
unbridled
in
papers.
many
I
My
family
own
Sell!
re¬
of
can
the
earlier
in
sells com¬
the most
We main¬
unusual circumstances.
tain that the risks of selling shares
risk
of
would
tell
them—and
keeping
astonished
often
how
you
I
if
you
to
were
this
proves
in the most doubtful
even
Now to be able to fol¬
situations.
low
invests outweiga the
one
be
itself,
I
7
.
ac¬
few
There
his
a
That should be left to the
vestor.
speculator
who wants to make a
be killed in the attempt,
or
who
one
or
in
Next
•have
Allen
been
added
Investment
High Center.
to
control
wants
corporation.
'
our
ox
is the
forced sale
6
objectives
the
in
for
The
of securities.
sav¬
is another way of ex¬
this kind of diversifica¬
are
government bonds,
bonds
and
preferred
stocks.
Advantages of Convertibles
In
buying such bonds and pre¬
ferred stocks, do not overlook a
certain
of
number
convertible
Schoenecke
the
staff
*A talk
of
lic
Company, Mile
to
20
and
bought at
enough of
by Mr. Gilbert befrre the Pub¬
for the Economic Educa¬
Inc
Roosevelt,
Foundation
tion
rf
70
W-men
New York City, Nov.
.
12, 1956.
of
over
life,
disposed
bonds
at
the
as
104.
now
of
which
We
common
why convert
so
have
we
convertible
cur
we
had
cheaply,
that the issue
is called?
We
simply used the
proceeds to buy other bonds and
which
stocks
still
thought
American Machine and
Foundry,
its
we
-
was
held
back
for
many
because of loss from
y.pars
most
now
one
of
profitable divisions,
the pin spotter,
is another exam¬
ple of how the principle of diver¬
sification
is
paying
off.
Lukens
many
to
thought would
life, is noW split
two-for-one, and is selling close
come
to 110. U. S.
Steel, too, and Curtiss
have also
been
making
Wright
new
/highs.
Mack
Truck
is
an¬
other.
ings bank
as
come to
never
of
need
well
Myers.
Steel, which
<■
disposed
is
De Vilbiss is another
a
broad diversification
keeping some cash
emergencies, so as to ayoid
program
(Special to The Financial Chronicle)
Charles
it
Walworth, which no one wanted
few years ago, is now up from
which
corporation
and
Now
share.
a
examples.
Typewriter.
For
many
foolishly
shares.
a
and
names
did badly and many
one
investor
an
diversification must be the
the portfolio. Euying
into a situation, in my
opinion, is not for the average in¬
tending
Michael
this
years
soaring.
were
quote from memory
these
is*: Royal
heavily
tion,
DENVER,
Colo. — George
W.
Dorsey, Warren V. Huskie, Ar¬
nold
F.
Kretzmann, Marvin
E.
of
than
more
down when others
way
chip class
now
cheap.
what about the latter three quar¬
Five With Allen
either
always like to give
I will
policy such as that I outline
a
for
Clearly current momentum
carry for a few months, but
were
in the blue
has Bristol
never
except
stocks,
mon
yet
optimism
been
laggard which has
Never
killing
impossible.
(2) I have not yet convinced
myself that business reversal is
v.
of
have
we
Yet
causes.
period
a
good number of the
a
$30
daily
keynote of
suggest:
(1) Monetary conditions may
make $20 to $30 billion increase
(3)
other
in
investments
Those
inevitable.
stock
known
decline
sales
In conclusion I want to
buv
and
now
tainty,
to you,
a
ier money can provide support to
.summary
of
of
degree
is
?
ex¬
flexible money policy
business downturn.
(3)
fall
the fact
risk in
over
worry
watched
have
ters of 1957?
must
We have had only
ample of
in
I
ignorance.
net
certain
a
who
earnings
level
spending
verse
in
ly, rising velocity has been able
a
sufficient
will
Here
Shift
ma-
monetary policy change allowing
increased monetary growth suf¬
ficient to support earlier spending
(1)
and
Construction
business
agree
considerable
drop.
with
might decline well into 1957
following: the recent stability.
(4) These changes could be
two
than
does
that
themselves.
rrmht
minus.
1954.
and
in which
cause.
there is some reason
to doubt velocity
rise can con¬
tinue,
what
about
position
of
(2) We know that,-historical¬
*From
well
in
the wise investor recognizes
investment
profit trend. Would not expect
sharp contraction.
our
or
trust
diversification
holding their own or making new
highs. Let me say that many of
course.
So
months
sales
to
Profits
might
be
velocity observation.
we
and
burdensome
slight
plus
(2)
loan
direct
business to utilize cash balances
more
become
(3)
to
of
current
more
Policies
Service
inventories
Here
only
a
estimates.
cycle.
-
is
a
rate
are
If
drop.
from
as
Data
velocity
The statistical evidence may be
summarized
(1)
until fur¬
tends
to
cannot have too
one
tually
consumn-
conditions.
cult if not
monetary growth have acted
past cycles.
rise
1
unlikely
Business investment.
(c)
avilable.
aterially in recent weeks' sug¬
gesting like trend in velocitv.
fur¬
?nd
5n
sumed
market
in past
expansion has slowed
I think not.
(3)
trend
a
our common stock
ing governmental and state issues,
Government spending does
appear vulnerable under as¬
not
be
not
if
be
might well evidence weakness.
declining velocity
trends have
the
what
is
Does
purpose
must first admit
know
or
The same statement applies to
of bonds of all
categories not exclud¬
vulner¬
arpas
non-durable trend. Durable sector
from recent loan trend.
(b)
Xhe business cycle?
that
to
(a) Velocity
closely related
expansion.
know about mone¬
we
tary growth,
4%
Other suggestions of
comes
might
seems
would
well
evidence is
leveling
and
Rate
money
ready to
now
are
of
(a) It
tion
closely cor¬
velocity.
(b) Yet is premature to con¬
boom
Growth
know that
we
dropped
Tends
that
there
able?
related with income
we
Money
spending
months.
two
Are
year..
(b)
outside
has
centers
becomes
Furthermore,
necessary.
of
a.
"fix"
a
required
seasonally adjusted debit velocity
fortunate
the
next
denying
(3) Furthermore,
having to make
billion in Gross National Product
good.
by this
position
forecast
for 1957 for another six weeks, so
I can afford to continue to weigh
pluses and minuses for a while
am
not
not
are
conference.
cf
of
other banks where not
accept the generally optimistic
we
club
funds to
firms that do not conform, as
chances of shifting borrowing to
imminent, but rather to draw dis-7
cussion to some factors that de¬
serve
of
compensating balances
suggests this trend may .be nearing an end.
(b) Banks possess very effec¬
of what I say
Although much
maintenance
on
higher
certain
purposes
•
succegde^|i^
view.
a
for the
investment
common
Gilbert
D.
Lewis
portfolio
that
aside
diversification, even if it
bookkeeping. , A well-
practices
reversal
when
business
trend stress
is most
properly on the
changes there may be some diffi¬ word "minimize" not elimination
culty
in
promptly
encouraging of risk. Ownership of shares im¬
expansion of spending.
plies risk—all business is a risk.
For
Diversification
we
always say,
known
family
begin
of
involves
constantly
side of
get prompt
we
I
the
sb
staying
is
I
much
your
our
of
put
attention to
pay
successful policies which en¬
very
the years, if
the com¬
over
shares
investment program. I repeat what
telling you
simply
to
to
securing
happen to rise.
mentioned,
and
what
and
amount of money
investment
(1) With rising velocity and in¬
flationary pressures, it is clearly
This
i
not
counsel,
is
values
Having
am
that
of
Benefits
to remind you
an
risk
benefit,
because one
opportunity for enhance¬
common
pany
is per¬
I
preferreds,
way of
another
£
haps the piace
that
is
minimizing
the
share-
This
convertible
This
maximum
ment
r~ *
y'
the
attention
best interests that policy be
to
me
and
either.
holders.
restrictive in recent past.
our
enables
bonds
has the
public interest
call
restrictive.
that
annual
e v o
am
foregoing is not meant
(2)
increases.
of
significance
to
factors.
money
Should
(b)
there is further
There is
disagreement among
as
m
pattern of past, and
possibilities.
(3)
prove
down¬
a
Certainly not, for this may
well be the exception to general
"monetary"
Sprinkel
information
headed for
(a)
the
and
d
risk"
attend
imply Federal policy has been too
turn?
apparent
Dr. B. W.
accom¬
downturn..
are
we
the
as
not
was
of
meetings
policy.
(9) Furthermore, substantia 1
tax cuts also undoubtedly aided
the upturn. Downturn brought on
largely by lower Federal spend¬
ing; not weak private sector.
(10) One
cyclical
experience
with flexible money suggests that
even with prompt monetary action
there exists a significant, lag be¬
tween timing of reversal of
policy
and
later
reversal
of
declining
shortly followed by
or
this
Does
that
period
rate
a
low
as
that
one
indi¬
data
been
growth
economic
an
consist¬
with
ent
rate
the
entire
this
never
panied by
appear
b 1 y
has
monetary
if answers de¬
rived
in
that
there
ask
to
in
statistical
Also,
cate
sometimes
useful
reduction
monetary growth.
(c)
is
it
that
or
been
has
,
also know that every
depression since 1909
shortly preceded by a
We
(b)
as¬
mize
About 15 months after reversal in
spending
trend
even
though
monetary growth was reduced.
Areas For Consideration
I
the rise in monetary growth near
mid 1954 did economy turn/up.
outlays level and decline as in 1954; and (3) recently
stable construction spending declines well into 1957.
which is very
over the
one
It is because
monetary
ment
advisability of maintaining long-term
diversification, and maintaining cash for
Cites adyantages of bond; and preferreds with
privileges. In managing a common stock port¬
folio, points out benefits, with specific examples, of estab¬
lishing and maintaining with patience, a varied representa¬
tion of issues. Advocates staggering of
purchases, and attend¬
ing annual company meetings as ether implements to minimize
action
growth in
decline
to
stresses
broad
convertible
Cannot
(7) Even
in
Gilbert
emergencies.
hope, how¬
that Board will have super¬
human
a
if not
Mr.
positions,
Board is convinced business trend
cyclical downturn. Mr. Sprinkel concludes that monetary *
conditions may make $20 to $30 billion GNP increase difficult
by
By LEWIS D. GILBERT*
(6) Certainly we can expect
future turn in monetary pol¬
icy to be prompt after Federal
one
was
fortu¬
so
security markets
to flexible money
any
exception to the general pattern of the past
invariably accompanied by or shortly followed
be
be
not
as
market.
Observing that the current monetary growth rate is the lowest
on record since 1909, Harris Bank Economist ponders whether
this may
well
adjusted
are
Savings Bank, Chicago
Economist, Harris Trust &
receding business.
May
nate this time
BERYL W. SPRINKEL*
By
of
(5)
Now
stocks
the
such
in
been
examples
of
these, which have
portfolio from the
many
as
our
times in recent years when no one
wanted them, certainly more than
make
like
are
up
Du
not
for the fact that stocks
Pont
or
selling
as
General
high
as
Motors
they did
some months
ago. It enables us to
hold with equanimity such stocks
as
Merritt-Chapman and Scott,
Loew's, Lorillard,
Westinghouse
and
similar
issues
which
have
\
Volume
184
Number
The Commercial and Financial Chronicle
5590
(2287)
been
depressed for one reason or
the
less
the
risk
in
the
invest¬
your
ment.
another in recent months.
Stockholder^
Minimizing Risk
not
management have
I
detached
a more
tion
When you see me making a fuss
at
an
annual meeting
on
some
in
order
minimize risk
to
is
followed, one does not come off
badly at all, and the risks of hav¬
ing "missed the boat" by not hav¬
ing the patience to hold on is thus
avoided.
To
follow such
vestment
policy
must
you
held
stock
however,
means,
follow
also
rules.
ground
long-term in¬
a
There
in
done
cases
some
what
or
trouble.
causing
the
flesh
the
of
full
on
insist
I
to
know
the
that
how
losing
we
it.
money,
right
a
to
paid for
was
what
or
divisions
I had
uct
my
question.
For
thorn
management.
if
years
we
have
been
products is worked out, thus mak¬
ing real use of the ownership.
trouble.
a
are
this is back of
happy about telling
Our
prodding on the subject
I never could sell the manage¬
unquestionably helped in the ment the idea, so that the other
making of the fine decision the decision was the only alternative,
other day to dispose of the Crosley' and I
rejoice that Victor Emman¬
division which was
causing the uel has now taken it.
disclosure, it
have
much
not
was
but swallowed the pill and did
us,
because this is the best way to
minimize risk that I know. When
property
a
ment
is
~
point, it is not just to be
in
has
what
is
the
company,
So
seen
good
a
one
with
compete
con¬
cerned, for example, with the fact
panies.
is because, as a partner, I am that Avco has not done as well as
stating my views. I do not pre¬ it should. I insisted each year at
tend to be omnipotent or always the meeting on
knowing which di¬
right, but time after time I saw visions were in the red. Manage¬
It
that
be sold
to
small
a consumer
to
the
public,
does
even
company
can
to
that
only build
say
but
than
a
that
the
a
meetings
management
the
all
the
answers,
shareholders,
interest
take
you
in
the affairs of the corporation yon
a
are
an
owner
permanent market for its products
in
that
have
not
anymore
annual
the
to
go
remembering
like Crosley, had to
much bigger com¬
continue
I
prod¬
of will have
a
lot to
do with the element of risk in tho
competition with the giants, if
situation.
system of discounts for company
;
,
certain
be
must
margin.
on
borrow
ment
a
insistent
so
viewpoint, and for that reason, can
see
more
quickly than manage¬
when
management
because it did
belong in the outfit. If I am
not
being part of
certainly do not want you to
get the impression that every de¬
pressed stock is going to go up.
Some may never do it.
I simply
say that if a policy.of diversifica¬
be
error
bought
11
no
One must
to
buy the shares.
International crisis will come and
never
the markets will have se¬
as well
so I maintain that only
go, and
periods of recession
vere
The great
boom,
as
the
investor
with
who
is
to
and
come
hope
not
steady
nerves
emotional,
ahead
out
can
game.
,T;\'/•
Our
rule
next
is
never
steel
put too
capital into
much of your
any one
company—lef the stock dividends
of
care
providing
There
want
with
you
is
to
another
call
to
rule
which
want to minimize risk.
use
it
in
exceptional
When
it to
call
to
has
one
scared of
I
get the capital out of
your
secu¬
Then keep forever the
the
holding
If
rest
which costs you
judgment is
your
will still benefit in any
further rise which may ensue, in¬
stead of being out in the cold as
would happen if you sold it all.
wrong, you
is
to
have been in the business of haul-
ing freight, they have sought
minimizing risk
stagger
your
purchases of
Suppose you are left $10,your business has made that
or
Don't
amount.
your
and
the
all
buy
same
Do it gradually, then some
week.
will
in
rush
holdings
new
be
bought
the market
at
periods
to this
answer
when
happens to be down.
the leaks in lost time/ revenue and
damaged
them
goods that
of
millions
because
of
greater risk is likely to be in buy¬
ing a share which has had a recent
may well be off.
buy what others want,
cream
you
with
up
of the
a
solution
hailed
now
Steel
Flooring, with which
want
minimize
to
than
more
40,000 boxcars and
gondolas
leading railroads
equipped today.
are
in 1955
were so
60
on
*TZsy,.,
risk,
brokerage of¬
watching
the ticker—leave
that to speculators. The misinfor¬
mation you will get will cause you
much regret. I am thinking of one
person who. after hearing me say
resistant
n-a-x
to form
just
and
unique nailing
a
Its
car
holds
groove
the floor remains
This
decaying, non-splintering, strength is
than
ideally
extinction, went and bought
Then because he sat in broker¬
rooms,
him
it
it is 40 and after
a
number of
combined
with
With
stride.
They
behind
in
its
payment
was
to. the
So
age
instead of sitting at broker¬
offices—remember the broker
should
be
exactly
that,
nothing
more—he should be the person to
see
that you get the stock you
want to
other
buy, not
words,
your
his
role
advisor. In
should
Annual
will be astonished to
much
can
be
done
to
how
minimize
risk
more
management is questioned at
annual
decisions
that
security.
meeting, the
are
gouging
safely support
stress
and
breakthroughs that endanger
nel and cargo on
loading
£ars
weakened ordinary
less
are
revenue
as
unloading
and
.
.
and
The
more
its
subject to scrutiny,
only by this
Steel making better steels for the
ter
is
there is less
bet¬
products of American industry.
At National Steel it is
our
constant
goal to produce steel—America's great
to
in boxcar
no
two years on
as
and often
drain
to
away
scrap
iron)
wanted,
when
is
it
to
*
our
N-S-F
customers.
(TM.)
1
.
,
or
SEVEN GREAT DIVISIONS
WELDED INTO ONE COMPLETE
same
Wood floors must be repaired every
average,
likely
expensive empties.
quantity
wanted, at the lowest possible cost
freight (like sand)—it's all the
N-S-F
can
return with
Shippers Benefit
suitable for all
are
Rough freight (like
bulk
example,
the
.
cars
freight and all loading methods, the
actual
person¬
floors.
Railroads and
competitive
sold in the U.S.A.
firm) is another example of National
cars.
haul
a
one
Gondolas,
kind
load of the other. And
haulage, there's
leakage,
for
one way,
no
spoilage of
no
a
damage,
load such
STEEL-MAKING
Steel
Company
•
GRANT BUILDING
Weirton
•
Steel
Products Company • The llannu Furnace
Corporation
•
National Mines Corporation
CORPORATION
PITTSBURGH, PA.
•
Stran-Stee! Corporation
Ilunna Iron Ore Company • National
grain. N-S-F is not only enduringly
NATIONAL STEEL
STRUCTURE
Great Lukes Steel Corporation
meeting
see
your
the
in
the
decided
and
Meeting
If you go to the annual
you
can
kind of lading
be
that of your agent—nothing more.
Go, instead, to the annual meeting.
The
any
are
the heaviest loaded lift trucks, with¬
out
banks.
cars
gives N-S-F-
our
made
bargain metal—of the quality and in
in
ago
uninterrupted
(it's
Corporation
the
dividend.
company
because
development of N-S-F by
damage to their goods.
take
a
of
advantages. Shippers prefer these
-
The
Stran-Steel
assurance
equipped
National Steel's Role
they
can
years
reported
pre¬
And because
points,
few
are
from
freight.
likelihood of
cal
a
vious
but clean, too—
contamination
table-
stock dividends it is really higher
and has just declared the first cash
Not bad for
smooth and strong
prevents
reinforced at criti¬
are
only
nailing
floor failures
no
easier, faster
N-S-F, floors
smooth. Cars
which
the
non-
advantage of wood.
bad company—he listened—
was a
now
told
someone
Thus steel's
at consid¬
years
service year after year
un-.
points to go to 0 and the law of
favored a recovery rather
averages
secure.
And
use.
completely
with N-S-F.
freight firmly, yet when nails
removed,
be
must
erable cost in money and lost service
time. But
patented nailing
few months'
a
they
replaced after five
:
blocked
only
usually
integral
impact-resistant part of the
itself.
are
an
after
It's
groove,
floor "plate" but
a
steel,
together
i
m? *
corrosion-
high-tensile
scarred and
it.
t, 7s*
'
What is N-S-F?*
N-S-F is made of durable,
that Mack Truck at 12 had only 12
age
-.y
IIHII
equipped, v
not
you
came
as one
greatest dollar-savers in rail¬
your money.
If
car
history. The solution: Nailable
formed into channels welded
fices
year
road
competing and pay dearly;
when you buy what the others do
not want, you get the' most for
you are
do not hang around
a
freight
flooring.
assuming you are only buying
in moderation, remember the
The
bleeding
were
dollars
inadequate
and
rise.
of
Nearly 50 percent of all boxcars built
If you want to avoid real risks,
When
an
problem: how to plug
Then, in 1947, National Steel
stocks.
000
..
For almost as long as railroads
Staggering Purchases
Another way of
annually, until.
to be really
reason
remarkably well, and you
think the price is out of line, you
can sell
enough of your holding to
nothing.
looting
cars was
attention.
your
done
rity.
railroads of millions
our
only
but I
cases,
investment which has
an
Faulty flooring in freight
I
attention if
your
you
want
in¬
sizable holdings.
creased
of
stopped in its tracks
the years and the splits take
over
train robbery that
the
of
12
The Commercial and Financial Chronicle
(2283)1
-
mm..
■
■
■
|
...
ft
MllYtinnal
J
If
nAtlf!
IIVIIU
sources expected the voters to be ciation
formally .requested the of new issues is kept witlyn. rea¬
limits
and
distribution
in SO generous a mood by granting Senate
Banking
and
Currency sonable
approvals to 90% of those pro- Committee to broaden the marrr continues to expand.
■
AVI AVJ
.
llViAVvi
posals. In fact, the result upset the keting possibilities
By GEORGE B. WENDT*
'•
™
j
xr*4;
™
.
.
.
,
II
.
then
Highway Act and drop in prices for those bonds;
volume of
due to tight
are
money,
V
bank
commercial
(3)
the
of the
majority
submitted
pointed
tion
and
aid
back-
enacted
"State member
pro-
the volume of
municipal bond flobeen at a high level
has
tations
the
continuing
decade.
trend
past
the
of
Ac-
,
Municipal League, Conference of
Mayors, many State municipal associations, as
as innu^n^r^>1^
National Asso¬
added to
been
books
the
Nov.
1, or ap-
•„
iv.n
compa-
period of
rvr^PPHinfr
tha
the
preceding
year.
This was
•
f,v
__
chief 1 y
anticipated
ac-
^00,f0°00r
be expected to
can
.
.
Mtir.
^w°PuW?c Housing Authorl-
The
available
the
at
mo-
ment, it is not anticipated that the
final total will soar to the $6 billion mark recorded at the close of
1955.
Roads
Toll
costs of borrowConsequently> some of them
aj»0 already initiating plans to sell
the immediate future at least a
higher interest
ings>
...
.
•
,
bond
issues
Tba
the
capi-
of.our states and politihigh-
bridges, housing, and other
improvements.
Thus fla
this year new toll road financing
has
been
conspicuously
absent.
Two reasons predominate for the
ways,
public
of
that category of municipal bond underwriting. First,
the enactment of tl^e Federal Aid
Highway Act of 1955, the subwhich
of
stance
construction
of
a
authorizes
the
41,000-mile
sys-
8%)
buses
and
which
(to
nrpecroo
nn
ttao
marWnt
n
The pressures on the market fi-
effect
on
the
possibility
that
a
few of the states may
essary
to
raise
shares
of
find it necpert of their
those
through bond
completion
a
highway costs
issues.
of
is
program
year
this
But,
road
scheduled
as
the
building
a
13-
period, the probability of
anv
large
ovpF
state
financing therefor is
perceptibly diminished, especially
as
several
of
increased
them
their
Furthermore,
passed,
the
have
already
gasoline
Act,
eliminated
finally
as
all
taxes,
possibility
of any Federal road bond issues
over
over,
as
recently publicized state-
ments from
that
the
official
Federal
sources
road
assure
program
or
•
construction
diate
future.
haps
a
lack
financing,
for
prices
in
the
Secondly,
more
for
tion
imme-
the
in
first weeks of January and November of this year, of actual offerings of AAA rated bonds in the
5-to-20-year maturities discloses
a drop in
bond prices averaging
55 basis points, with about the
same ratio of decline applying to
as
and
per-
Banks'
thoye bonds.
In snme
as
19 points from their orig-
inal
offering prices, while in
tain
other
situations
bv
Conference r< Bank
National
Bank
gishness in distribution, heavy
demands for funds from otr.er
segments of the economy, tignt
money and critical internd^Tc^ial
developments were uncferlying
tee No. 3 (Ari¬
been
elected
NASD's
trict
to
Dis¬
Commit¬
L.
Donald
Patterson
Colo¬
zona,
rado, New Mexico, Utah and Wyo¬
ming).
They
are:
Edward
B.
Coughlin, Coughlin & Co., and Ed¬
ward A. Hanifen, E. A. Hanifen
& Co.
cf
M,
the
State-Municipal
What
burdensome
A
backlog
of
in-
tions
Dubi;c
^
a0od
its
and
g
u
'
exercised
be
can
the
nocketbook
as
p
•
,
for
attracted by the advantageous
turns
the last session of Congress,
Senator Bricker of Ohio introduced a bill to amend the Banking
Act to permit commercial banks
available.
now
tPn
nilc+
.
,
have been more or less on the
sidelines, individuals are entering
the market in greater numbers,
davs
„
Within
rpnpwpH
banks
Ass'n Formed in N. Y.
The
York
Association
Investment
of
New
luncheon
Young
organized
recently
Women's
held
initial
its
Nov. 28.
meeting
Miss
artivitv
has
als
and
keeping ourselves posted on
the
securities
Zuger
sional
the
b
s
u
i
n e s
that
have
we
s,"
Miss
stated,
she
Further,
said.
feel
"we
profes¬
a
responsibility in
helping
to
understand more
public
the
investment
field
by
making talks to various groups."
Amyas Ames, management
partner in Kidder, Peabody & Co.
and
the
guest
speaker at the
fully
re-
the
on
meeting, discussed Wall Street's
expanding program of public edu¬
been
not:reabie
cation
the
and
part
While the prevalent impression
to participate, within limitations, of the market inclines toward an
in "Revenue" bond underwritings. irregular downward trend, due to
No action was taken on that bill uneasiness over the Middle East
up to the time Congress adjourned and Eastern European situations,
Lynch,
last June- Less than two weeks there is a fair possibility of a
aS° the American Bankers Asso- leveling off; provided, the supply
of
can
women
play in this program.
Other officers of the association
Susan
are
of
Rappaport,
Pierce,
Merrill
&
Beane,
Fenner
Vice-President: Audrey Hochberg,
Shields
&
Secretary,
Co.,
of
Nancy
McMamara,
Boston
Corporation,
The
and
First
Treasurer.
ArrmNmA
Portfolio
is
municipal portfolio?
Joins Bache & Co.
Due
AAA
nicipal
of state and
obligations of all
rommprpial
banks.
On
those
investments
AA
'
30,
BAA
-
holdings of
not
•
77—7
v
slightly, in all likelihood
up
v
t
'
-
due to the prompt reinvestment of
...
realized
requirements
the
for
bulk
of
loanable
ap-
banks
their
Government obligations.
Undoubtedly, the most notable
development in the municipal field
ago
of
a
record
bond proposals.
ceedecl
by
billion
a
ex-
the
dollars
Municipalities
ago.
in
That amount
of
record established seven
states from
pated
$2,700 million
coast to
the
and
coast oartici-
parade
with
their
propocit.ions varying in size from
$i million up to $500 million.
'
New Bond Approvals
While the outcome of elections
that
even
the
was unlikely
most
informed
2.28
3.07
2.60
CHARLOTTE, N. C.
2.25
3.26
2.65
3.69
3.00
has
Barrett
2.10
2.35
3.43
2.80
3.76
3.15
Bache
2.88
,
&
,
joined
—
the
Virginia
staff of
Johnston Building.
Co.,
> •
.
,
A
ft
i
,
Parker, Ford Branch
FT.
WORTH,
Ford & Company
a
Tex.
Parker,
—
Inc. have opened
branch in the Electric Building
under
fI one-form
Rorrdsi
'
.
^7d7ral
commercia?
that
2.00
2.80
2.15
3.14
2.50
3.54
2.90
2.00
2.81
197G
2.70%
the
of
management
C.
Thomas May, Jr.
-
.
,
primarily fr0IT1 liquidation of U. S.
seems
1<J"1
2.53%
*Dow-Jones Municipal Averages
* a
V'- ■*
funds
parent
have
It also
,!>cc
2.45%
1.90
2.68
1a.r
first;,week in:
Jartuary
JulV
November
maturing bonds
1<JGl
2.25%
1.80
2.46
As of Nov* h 1956*
only
remained exceptionally stable, but
are
January, 1956
-November, ,1956_^___
January, 1956
^November, 1956
January, 1956_„
A
insured
.Tune
have
January, 1956—_—
'"November, 1956
mu-
they totaled $12,730 551 000 which
is 1.17% higher than a year ago..
It is evident that bank
-November, 1956
It
interesting to note the tabula-
tion of holdings
ner-
2S,'1956.
many,
where your judgment
knowledge of market condi-
effect has this downward
banks'
Correspondents,^First ^ unpredictable, it
^rUcipati.n
examined"
trend of the securities markets had
declines
w^nRt
Chicago, Nov.
the market has drifted so.ewhat
Young Women's inv.
(Special to The Financial Chronecle)
years
the drastic drop in
was
TiTaddres-.
have
Yield Range Municipal Bonds
important toll road previous
exnlanaof
new
instances they have denrnciated
much
men
j
flotations
and
of yields,
A comparison
mission
authorized and contemplated to be
an
with
and
°f
309%
ton^road^OwCO^PraWPetefkith dHri'"g the the voters was the sub~
nast ^ear three weeks
those
to
toll roads now operating,
under
11_
carefully
interest them by absorbing the
offering of
low their lQSB b^tt^m of JL06% inS on a ldate for the one instaence majority of new financings,
them 1953 bottom of 3 06% ^
^ ^ as
Though
institutional
investors
on
is
.
•
important consideration f°r tax-exempt securities, in tne
^
heavy volume
of course
of the past few weeks,
ahead
should
be buyers have
displayed a keener
*s aiso
^^b^^P^e ^fownle^
from
10%
into
went
July 1.
There
curities
'
se¬
During the year, municipal bond
prices reacted downward followinS aI1 other divisions of the capital markets. Large volume, slug-
.
follow? aPPr°Pnate
procedures to
na*ly forced th.e Dow Jones mu-
an
(2 cents to 3 cents per gal.), tires
(5 cents to 8 cents per pound) and
trucks
an'
in¬
vestment
i
and
Defense AA and A rated bonds also. (See
estimated cost of table.)
The Federal Gov-"
Tight money a heavy volume of
ernment will provide 90% of that
new
bond issues
plus substantial
cost, or approximately $24V2 bil- backlogs of undigested older offerlion, and the states the remainder. jngs constitute the principal conThe Federal funds will be derived
tributing elements to the lower
from increased taxes on gasoline
price levels.
Highways at
$27.5 billion.
Congress when it reconvenes aftei
pol-
authorities'
monetary
Interstate
of
tern
other
Nancy Zuger, of the Syndi¬
For example, experience has ventory, together with the recent
cate Department of Bache & Co.,
demonstrated on more than one substantial approvals by the vot- and the first President oi the or¬
icy of credit restraint inaugurated occasion that a community would ers, further tends to overshadow
ganization, explained the purposes
the latter part of 1954, continues have
benefited by obtaining a the long-term picture. On the of the
group.
"We have formed
to prevail and has had its rener- tower interest cost on their obli- other
hand, currently attractive
this
association
to
vitalize
and
toe securities martet, gallons, had such advice
been yields are showing signs of a po- broaden our work, by getting to
including tax-exempt bonds.
forthcoming. The timing of sale tential increase in the demands know each other, exchanging ideas
The
supplied
subdivisions for schools
paucity
Two
Denver
gregating $198,535,000.
,
,
funds to meet the customary
tal needs
Deal¬
cusKsin
Federal
and
Highway Act
Those
a
develop during
C~'»'
indications
that
Se¬
of
curities
hv"
market;
rather substantial amount of them
rnu
nrtmn,
the
in
rable
is
it
the
I
than
less
however,
the
enter
to
large bond issues were uncommon
art
if not the entire amount
of
Bduring the past ten months. With tbe ^ew authorizations.
'
factors responsible for that remmthe exception of two "revenue"
'
action.
bond deals of $100,000,000 andmarketing problems that
Drior to the re-election of
<Di«finfmnnn
nnnl
thd «PnPrai wl11 be encountered by municipal
Just prior to tne re-eiection ot
$166,000,000, none of the general
officers present an excel- President
Eisenhower, a quietus
obligation underwntings ap- Jinance omcers present an excel
markpt wa<? pvidrmt
whr-n
nroached ihem in sizp Tho largest lent opportunity for you to render m tne market was evident wnen
proaened tnem in size, ine largest
siHnifiCant public service to vour many major issues were witnheld
among the latter category was the d ^guineam Puoiit.service xo your
j
sinrpfhpn
nn
1p« than
■■■ill *■■■ rwpntsaip nf «57 fioo nnn Pnmmnn
communities by offering construe- irom sale, toince men, on less tnan
G
B
Wendt
Jlu# of $57,600,000 Commo
advice
on
the
appropriate the normal number of flotations,
by
proximate ly
5%
p,
Municipal Bond Market Status
^Notwithstanding tne steady vol—
tj| ume of notations, spectacularly
M
had
bonds
ready
of
ernors
ciation
ers.
At this time, it is problematical
be
^he coulrse of the ensuing year.
estimates projected when
Municipal fiscal officials are exwere marketed.
pressing concern about the current
,
the
to
toTenlLJent of'heAmerican
the securities
value of
par
been
elected
Board of Gov¬
port, and recreational activities.
considerably greater. To a
large extent, those fluctuations refleet the disappointing results from
operations of newly-opened facilities whose revenues fell short of
rosy
has
important proposals approved, ineluded those for water, street, air-
were
the
cording to the
Buyer,"
$4,679,000,000
"Bond
DENVER, Colo.—Donald L. Pat¬
terson, Boettcher & Co., Denver,
we^the Principal^ "light" Otter'
government
when the various bond issues will
Since the beginning of this year,
NASD Bd. of Govs.
that if such legisla-
out
were
banks of the Federal Reserve Systern, unless otherwise restricted by
highways, in the order mentioned, State law^ would have the same
bonus
Patterson Elected to
verdict derwritel'revenue" bonds It was
issues
defeated.
were
of municipal
securities by granting authority to
national banks to deal in and un-
posals, together with schools and
holding, are up'
slightly over a year ago; and (4) individuals and banks are
entering the market in greater numbers, attracted by currently
attractive yields. If new issues are in reasonable numbers and
distribution expands, Mr. Wendt believes price may level off.
log,;
of
Veterans'
heavy
bond issues and substantial undigested
new
last year's
when
*■
(2) lower bond price levels
as
reversal
eg
Chicago banker appraises the municipal bond market prospects
5
j
c
j
i*
j
j
and
concludes:
(1) toll road tinancng declined due to
Federal
pre-World War II
being a complete
precedents of
years as well
„.,i
Vice-President, The First National Bank of C
;
Thursday, November 29,1956
,...
i»m
2.55%
2 65
3.08
—-
—
______
195*
2.38%
252
2.47
■*;
*
.....
n>»4
2.52%
2-31 '
2.31
,
4
2.45%
3 02
2.56
Reserve policy changed June, 195S to ease money market.
«.
,
•••
;Waddell & Reed Branch
CHARLESTON, S. C.—Waddell
Reed, Inc. have opened a branch
office at 8^2 Exchange Street un¬
&
der
the
direction
of
Marcus
R.
King.
Floating Supply of Municipals
Form American Nat'l
(000's omitted)
.
Beginning of month:
1955
1
Tarmarv
$250 311
S233 610
Anril
264 845
236 123
TnW
273 602
235 605
~
7
"7
"
"
"
1RQ336
30-Dav
21q'qi5
267,145
Novembei
•
176417
267 145
Nnvpmhpr"
Visible
30 Day V\S^e
JACKSONVILLE, Fla.—Ameri¬
January
is
investment business. A. E. Cobb
Johnson & Geisler Formed
SuddIv Municipals
Z Municipa,s
(Special to The Financial
i»r>r,
POMPANO
Johnson
and
H.
:
$326,882
283,545
formed
Johnson
440,640
155,142
engage
in
411,957
ated with
172,066
.
Mr.
Chronicle)
BEACH, Fla.—H. G.
219,487
230,575
July.——1
September
Novembei*—1_
of the firm.
President
198,434
^
317
Forsyth Street to engage in
$203,052
.v
has
West
an
with
at
formed
219,915
195G
April.
Inc.
offices
been
(000 s omitted)
Beginning of month:
Securities
National
can
N.
Geisler
and
have
Geisler
a
securities
to
business.
formerly associ¬
Roger G. Johnson & Co.
Geisler
was
Volume
184
Number
5590
;
,
.
The Commercial and. Financial Chronicle
tionc These products
are used, in
cracking processes for
the production of high-octane gas¬
John Nuveen Names Three Vice-Presidents
Jackson
.
E.
Cagle
South
La Salle Street, effective Dec. 1, 1956, was announced by C. W.
Laingr President of the 59-year-old investment banking firm. All'
are veterans of John Nuveen &
Co., the oldest and largest organiofficers of
as
John
Nuveen
Co.,
&
ply approximately $145 million.
(Subsidy agreements will assist
oline.
generate
catalytic
CHICAGO, 111.—Election of Miles Pelikan, E. H. Davis and
-
(2289): 13
135
•
«m<
■
Grace has
an
which
chemical
$60 million.
'
:•«
sales
estimated
are
total
of
by 1959.
Capital expenditures in 1956
estimated
be
Latin
is
a
a
sugar
With
hours.
E.
H.
Davis
fc.
Jackson
Cagie
and
zation in the United States dealing in municipal securities exclu¬
sively.
Mr. Pelikan and Mr. Davis have been elected Vice-Presi¬
dent? in charge
Underwriting and Research, respectively; Mr.
of
Cagle has been named general counsel.
Mr.
since
Pelikan, Manager
of Nuveen's underwriting department
the organization from Associated Telephone
and Telegraph Co. in 1934. He was Resident Manager of Nuveen's
Los Angeles office from 1947 to 1954. when he returned to Chicago
1954,
head
to
the
An
the
to
came
company's nationwide
alumnus
Harris
Trust
the
and
research
of
mined
departments
and
will
He also is responsible for the companv's promotional and
it
to
seems
stock
that
me
the
&
in
will be replaced
in
over
Grace
a
State Bond
Company,
North
28
Street.
(Special to The Financial Chronicle)
KANSAS
CITY, Mo.
—
Robert
E.
With
f
Philip Glanzer
Lacy has become affiliated with
Harris, Upham & Co., 912 Balti¬
j
Richard
H.
affiliated
8549
Calif.
HILLS,
Johnson
with
Wilshire
has
—
Two With Hill Brothers
become
Philip
Avenue.
more
Special to The Financial Chronicle)
BEVERLY
Glanzer,
(Special to The Financial Chronicle)
Boulevard.
ST.
With McCormick & Co.
ex¬
have
LOUIS, Mo.
LOS ANGELES,
Plant
N.
the next 20
with
program
3761
has
Calif.
—
affiliated
become
McCormick
Wilshire
and
Company,
William A.
C.
Security
members
cf
Stock
Abbett
the
was
New
Houser
with Hill
associated
M'dwest
Irving
—
Richard
and
become
Brothers,
(Special to The Financial Chronicle)
The
Line
costing $286
million, of which Grace will sup¬
years
Thomas J.
—
with
now
Harris Upham Adds
common
Abbett
the
is
Mortgage
-
South America.
fleet
ULM, Minn.
Minnesota
Co. is at¬
Grace &
priced.
and E. A. Hagquist, Secretary.
Bilodeau
be
generate about $2o million in sales,
as demand for paper is
strong in
current
Spencer
(Special to The Financial Chronicle)
past record,
condition, and a
that displays vision
of W. R.
tractively
from 26,000 tons to
36,000 tons annually. In the next
four years, the company's paper
production may increase to 100,000 tons annually, which should
Therefore, the future looks
S.
President;
NEW
ability
up
ceptionally bright for Grace.
underwriting activities.
investment
Savings Bank, Chicago, Mr. Davis
Research Department in 1941 and became its Manager
Nuveen's
in 1949.
of
Peru
securities bus¬
a
are
"
to utilize its unique
position in geographical growth-
waste, and is de¬
Capacitv in
stepped
urer;
excellent
an
management
as
a
continuous
quick
pulping method to make pulp in
a
matter
of miniites
instead of
Pelikan
million,
financial
sound
scribed
Miles
Officers
With State Bond & Mtg.
in the future
In Peru, Grace
from bagasse, which
cane
iness.
Grean,
domestic and foreign chemical op¬
substantially expanded in
paper
City, to engage in
are
Hiram G.
Shields, Vice-President and Treas¬
■
erations.
America.
makes
$60
of this will be ear-marked for the
■
reach
at
and
Grace expects to authorize, dur¬
ing 1956, * capital expenditures of
$100 million.
About $50 million
$65 million in 1956.
Paper production
will
to
•
to
an
earnings
Dewey & Almy Chemical Co.
produce chemical specialties,
which
Heritage Fund Distributors
Heritage Fund Distributors, Inc.
increase in steamship has been formed with offices at
of 50%
above current, 33 West 42nd Street, New York
This is expected
levels
agri¬
operations,
in
generate annual sales vol¬
of
ume
,,,
investment of ap¬
proximately $45 million
cultural
-r
balance).
on
Building,
and
York
Exchanges,
previously
Mr.
with
Bempsey-Tegeler & Co.
Boulevard.
advertising activities and is author of material dealing with mu¬
nicipal securities, including a widely-used textbook,
Of the
People. By the People, For the People
Mr. Cagle is a native of Texas, a graduate of Northwestern
.
.
.
.
University with
a BS degree and of the Northwestern University
degree of Juris Doctor. After six years of private
practice in Chicago specializing in municipal law, he became asso¬
Law School with
ciated
with
1934.
John
Nuveen & Co.'s Underwriting Department in
nationally known as an expert in revenue bond
Lieutenant, USNR, during World War II, serving as
Mr. Cagle is
law.
He
was a
officer.
gunnery
Established
i
Head Office:
by the late John Nuveen, Sr. in Chicago in
Canada
Toronto,
1898,
the co-partnership was incorporated in 1953, the company's direc¬
tors and other officers being John Nuveen; L. L. J. Howe, Chair¬
V:
1956.
J 955
1956
Assets
$
Cash Resources
.
.
Securities
•
.
•
the
of
tions, they
following:
The
Line—a
Grace
vessels, which have
250,000
the
United
with
fleet
States
of
26
capacity of
a
tons—operating
Central
the
operate
and
own
some
their opera¬
of
scope
between
South
and
and
ports.
Along
operations they con¬
these
duct
port operations of consider¬
able size at each' point.
Together
World
with
Airways
Pan
—
American
they
own
and
operate Pan American-Grace Air¬
ways
(Panagra),
serves
intermediate
lombia.
Chile
Ecuador,
and
Grace
York,
which
Peru,
Argentina.
National
which
commercial
the U. S.
Bolivia,
banking
well
as
institutions
American
conducts
of
New
general
a
business' in
with banking
South and Central
in
as
countries.
*
a
Total
sales
were
1955
from
$427
to
pared
Earnings
$413
$4.16
were
pared
to
million,
$3.36
per
in
successful general
The
big
reason
in
recent
In
agement.
the
for
all
past
this
be
few
profitably added to the Grace
The trend at present
is that the
the future will be
$19 million business in
in
of
its
enterprises
are
of
woolen
mill
Colombia:
fining;
process
important
foreign
cessions
ownership
or con¬
in
mills
Peru,
and
which
Chile
and
growing and re1
making—with
a
utilizes
bagasse,
flour
milling, tungsten and tin
mining: also—a vegetable oil and
lard plant,
paint plants, cement
plants, a biscuit and candy factory.
are
on
its
this for
ume
and
a
moment.
Sales
profits reached
els in 1955, due
new
"
.
•
%
*
deal
UntKMei FroJib
f;:"
-
I rom* «
L>X
Rpscrves
Contingency
.
Kescr
if vlfK
fig
4:
Net
I
Profit
pec •
•
Dividends
Extra
•
'
'
.;
'
:
Distribution
.
%
1955
1956
8,318,1-59 $
1,442,092
3,220,000
3,656,067
2,198,229
7,503,002
1,423,250
2,852,000
1,247,752
1,950,000
300,000
395,412
"977132
T,062,426
1,877,599
ijndiviiicd Profits Brought
Forward
transferred 0, Rest
Balance of Undivided
Prol.t
con¬
&
Almy Chemical Co. divisions. It
that in 1956 the larg¬
is estimated
£40
million
by
Davison's
and
thetic
small
7
est industrial chemical sales of ap¬
proximately
six
lev¬
largely to the Da¬
contributed
operate
vol¬
vison Chemical Co. and the Dewey
sugar estates,
Republic of Guatemala
own
'
43,671,406
13,728,435
15,000,000
30,000,000
2,855,351
chemical operations
biggest business, let's dwell
and
they
^
1^17,090,133
covering about 25 million
They operate large
in the
,
.
213,604,184
3,485,949
Grace's
As
a
sugar
paper
Libya, which holds
•
'
14,855,215
19,850,639
.
,
*
.
1
acres.
cotton
seven
a
1956
venture in
Some
trol
Grace consummated
to acquire a 49% interest
Texas
Gulf
Producing
Co.'s
in
.
.
m
years,
searching consistently for
growth enterprises that .gould
big growth in
coun¬
1955.
Paul bp
Account
1^60,688,955
ol
nul Letters
Statement 4
is—Man¬
years
1,256,108,403
.
.
Undivided 1>n'l,ls
Grace—43-year-old Presi¬
dent, and his outstanding and ag¬
gressive management team have
been
P^7^673j?i?
•_
•
Liabilities to
1953, and $2.65 in 1952.
growth
145.610
.
in
ration.
largest out¬
advertising firm in the
a
Rest
com¬
$3.17
—which is the second
try—did
Capital
stock in
share,
1954,
:
Acceptances ana
Credit ;
• . ■•
1954.
mainly in the chemical and paper
divisions, and if all goes well in
the drilling department-oil explo¬
door
Tntil
1
com¬
in
common
14,691,553
18,464,377
13,728,435
■
4,580,552
l.ul».l.ues
Od.cr
activities
million
the
on
all
520'3J,1'^
408,800
.
Deposits'
cal Co.
insurance brokerage business.
The Foster & Kleiser Division
very
Liabilities
Co., Davison Chemical
Co., and Dewey and Almy Chemi¬
empire.
Through another New York sub¬
sidiary; Griswold & Co., Inc.—
conducts
750,000 lbs.
Chemical
new
^
711,332,734
m
J. Peter
Bank
,
•
annual
an
Grace's chemical manufacturing
activities are conducted
by Grace
airline
points in Co¬
plantations, with
production averaging
green coffee.
1955
'
kntSge'■ ;
^rS<HxUerSofc^it
of
in
355,028,674
73,151,562
656,078,652
614,541,770
36,367,923
18,728,632
14,855,215
♦
.
227.898-41& :
231,369,241
432,344,344
47,619,149
,
Sundry Assets
coffee
American
*
Quick Assets
Total
The Security I Like Best
idea
•
*
•
.
Call Loans
Continued from page 2
magnitude of Grace. To give
AT
AS
Laing. President; Frank C. Carr and George J. Gruner,
Vice-Presidents; Walter R. Sundling, Secretary and Treasurer;
Carl T. Nelson, Jr., Assistant Secretary.
The company maintains
offices in New York, Chicago, Boston. Cincinnati. St. Paul, Los
Angeles. Cleveland and Detroit, the latter two having been estab¬
lished in
Annual Slntement
OCTOBER 31
101 st
C. W.
man:
petroleum
catalyst
will
be
syn¬
opera-
.f
.
£vX%>*^<v>
-
*
£4
/
(2290)
A
Diversification in Industry—
number
Taking in Other Fellow's Washing
STABLER*
By C. NORMAN
tains
prompting corporate diversifi¬
reasons
companies,
supervising the operations of units
phia
gigantic
J
t
J
I
wish
to
talk
laundry
versal;
it
industry in the last few
the space of
seen
fields
Some
Remarkable
has
by
combining
clock
and
marine
tions with
the
business
of
taking in the other fellow's wash¬
ing or, in more refined language,
calibre,
high
and to attract others.
for
Need
"Diversification in Industry."
There
Broadening
Market
a
why
The need for broadening a mar¬
diversification has become the fad.
ket, of securing a more adequate
flow of raw materials, of .utilizing
ness
an
by
sound
reasons
management measured solely
the monetary return it can
fihow
on
dollar of investment. In
a
a
ceding year. There
thing as standing
be
can
craze
to
reasons
into
get
Specialization has given
such
no
funds,
excess
we have
the other
fellow's line of business; to take
in his washing.
other
are
this
growth situation, one in
which assets, gross and net. income
always show, a plus over the pre¬
as
of
the human desire to get big¬
ger,
addition to this, it must also qual¬
ify
accumulation
and
acquired
the
its
way
to
integration.
Acquisition
follows
acquisition in rapid fire order. We
is
cobbler
stick
to
his
last."
It
ascribed
to Pliny the Elder, a
philosopher who, by to¬
day's standards, would ba conrider ed misguided. Were he aliVe'
Roman
tociay he might think that a steel
company should make steel, that
an
oil company should
produce,
sugar
do
\Such
gressed
are
have
beyond
the
should make
one
minding his
a
pro¬
There
of
shovel
a
of them;
one
taxes
are
Technological develop¬
come
so rapidly
that it is
impossible
market
to
for
stand
one
still.
product
If
equipment,
Another
uranium
boasts
tions
since
still
is,
the
of
It
war.
specialty
a
and
was,
to
greener
side
nology
is
of
the
on
fence.
Tech¬
growing
new
there, and to be satisfied
with th$ picked-over meadow on
this side would be construed
as
unfair
treatment
of
Brass
deserving
Stockholders.
Taxes
„
round
a
frequently
for
reason
combination
tion
for
a
is
this
constitute
carried
to
more
this
tome
alone, we frequently get
strange ones. The tax struc¬
been
a
dismal
tended
asset
can
Its
it
has
be
can
used
to
The
f access.
chance
the
to
less
cern,
latter
take
in
welcomes
for
^
successful
varied.
rales
the
serv¬
talk
has
its
and
reasons,
appeals
they
are
A downward trend line of
may
banker
*A
or
rendered.
other
to
who
has
persuade
become
as
by Mr. Stabler
nual
a
company's
steely-eyed
before
the
an¬
luncheon of the Nati-o^l
IMustH-q
Traffic League, New York
City, Nov. 15,
I35ti.
What's In
Corporate
has
Name?
a
names
become
little. It
mean
practice
corporations to change their
names, because their business has
a
common
for
wandered
far
afield from
originally.
was
that
realized
have
words
what
Directors
it
is
such
misnomer
a
it
have
to
coal, steel,
chemical or toy in
as
be
The
linen
nothing
supply
do with
to
of
Co.,
its
best
in
the
Perhaps
will have
we
ries.
There
when
we
may
electronically.
time
General
few
a
developed
By
wor¬
a
will pick our executives
announced
tern.
no
come
new
a
Electric
days ago iLLias
personnel syV
of high-speed data
means
processing equipment, to supple¬
ment human judgment in deter¬
mining
which
engineers
and
scientists should be considered for
it
examine
estimates
the
it
can
qualifications
of
10,000 technical people, in its 153
plants, in a matter of minutes.
Sucn
things
and it
will
steel
a
stuaio
of
the day,
save
no
company
or
motion
will
may
De
runs
dance
a
oil company operates
an
picture
theatres.
Names
nothing because
mean
tnat
concern
no
one
specializes
would
ever
from
Boni, Watkins, Ja¬
which
at
coal company or milk from
a
think
of
buying coal
dairy.
a
in
advising business¬
whether they should make
Consumer
a
Picture
Confusion
a
Unconfined
young couple and their
product,-or buy out the present children
coming
up
from
the
maker, observed recently in a
South, to move into their new
book on the subject, that Ameri¬
home in Westchester
County. The
can industry
may be on the brink
wife cidn't want to travel by air
of
new
a
recent
do-it-youpself movement.
be drawn from
can
business
history
wr.ich
suggests that the outcome of such
will
movement
a
be
far
more
se¬
rious to the economy than
figura¬
tive swollen thumbs, blisters and
aching backs, it observed.
are pitfalls
along the path.
Other
Strange
There
few
of
the
kinds
of
the children
.juught
iiuu
Line.
the
so
the Seaboard
irom
TYey
husband
the tickets
on
tried
to
express
of their
some
belongings north by
isxprtss
Co.,
only
to
American
find
that
out
international
this
is
concern
bank
with
an
travel
a
agency.
The
piece of property in West¬
chester
c^ticizing
diversification, but merely to note
brought
ixc
Air
Bedfellows
Without in any sense
a
with
had to get a rebate
bedfellows
together
the
was
largest
estate
New
bought
and
York
from
most
investors
in
central
one
active
this
of
real
the
area,
Railroad.
The
by the pursuit
excavation for their home was dug
diversification, let's cite a few
by
a
marine
salvage
concern,
more
familiar
cases.
The
Glen
Alden Corporation, formerly Glen Ivierritt-Cnapman & Scott. Cement
for the foundation came from the
Alden Coal Co., this year acquired
largest of cement producers, the
the Ward La France Truck
Corp.,
United States Steel Corp. Crushed
makers of fire
of
fighting apparatus
and
rescue
also
in
ness.
Glen
cars.
the
air
Alden
American-Mariptta Co. orig¬
inally
was
paint
a
and
varnish
It still is, and in addi¬
company.
tions
owns
controls
or
tions.
Among the many beneficial di¬
has
programs
obtained
was
been
from
Chad-
bourn,
Gotham, Inc., hosiery and
lingerie manufacturers, who re¬
cently acquired the assets of the
idv«.rton Lime & Stone Co.
Lumber
companies
making
concrete
pipes,
metal
products, adhesives, resins, chem¬
icals, machinery and bridge sec¬
versification
stone
is
conditioning busi¬
national
that
irom
and
from
came
Paper Co.,
fire
the
Inter¬
furniture
known
well
new
chemical
arm
manufacturer, Olin
Mathieson, and the Benaix homethat
from
wamicr
television
and
Central
leading
radio
Philco.
company,
Motors
It
is
without
rush to the reference books to
re¬
that
of
U.
S.
the Pressed Steel Car
was^about to
now
are
going
and
more
that
wins the
ufacture metal
Coal
and
Let's
see
fastentrs, parts for
jet engines and other aircraft and
Candy
what would
happen if,
industry, a re¬
in
searcher included all companies in
the respective field under exami¬
regular
provided by
the
railroad.
I assume you
.
trucking gentlemen,
being broad-minded, are not dis¬
turbed by this bit of diversifica¬
tion.
for
In other
them
to
words, it's all right
take
in
this
bit
of
Railroads
are
cooperating with
the trucking companies and steam¬
ship lines also through their pig¬
gyback and their roll-on, roll-off
operations.
The
Pennsylvania
Railroad's calendar shows its
train, which has
a
aero
lot of flat
cars
loaded with trucks.
Industrial
analyzing
nation.
to
If
the
would
phia
have
The urge to
to
diversity is far
more
pronounced in the industrial field.
Douglas
radar
include
Most mergers
tions
of
to his
thty
United
The
-
States
toy
Steel
industry
could not be covered without ref¬
Standard
Commercial
Co.
If you are
top coats and overcoats,
would think, among others, of
for
not combina¬
in
They
the
same
usually
are
which
nearer
material
supply, or else
hodgepodge
mergers,
are
For the kids there
was
Union
some
of
fine Selby Shoe candy,
and toys from the Standard Com¬
very
mercial Tobacco Co.
lit
The
cigar, rolled by
a
turing concern whicn
stockholder,
the
husband
manufac¬
a
has,
Bush
as a
big
Terminal
Co., operators of warehouses, piers
and industrial buildings.
They all had a drink of orange
juice,
it
is
fresh
from
Co.,
changed its
nental
I
Florida, where
by the Detroit
which
recently
manufactured
Hardware
to
name
Transconti¬
Industries.
corporation attempts to
employ its funds to more advan¬
the husband
tage by investing in another line
gineer, employed by City Products
_
a
business.
One
tinue
to
keep
one
and
a
to
effect
tion is that
can
thinking of manufac¬
and
It is also
liner
integrations,
raw
of
Corporation.
airborn
saws
bring the producer of goods
States—
the
are
companies
upstream
and
business and has
line of business.
wherein
turers of
plywod,
cnain
in the factoring
Any analysis of the cement in¬
dustry would have to include the
largest producer in the United
you
fir
antenna,
generators and blowers.
Philadel¬
and children's footwear.
to
make
concerns,
bought an ocean-going
he the Hawaiian trade.
Reading
Co.,
formerly
Philadelphia & Reading Coal &
Iron.
If
his
subject were the
candy business, he would have to
include Selby Shoe Co., makers
erence
Diversity
to
industry,
&
of ladies'
sell
he turned Lis attention
underwear
Tobacco
Urge
an
that
irom
Carbide.
automotive
Underwear; Shoes
and
any
Commission's
washing of washing if they happen to be com¬
business con¬ ing down this street
anyway.
irrespective of the types of
Diversification
man
the
poods manufactured
ices
the
family;
the
spotter.
be merely a supplemental service.
It must supplement
the
merger
advantage by a. big company that
is paying the full
penalty for its'
be
I
successful,
especially with its automatic pin
into trucking, and operating
valuable •service
a
the
al¬
missiles.
approval for such extensions must
over an ex¬
offer, in
loss
route
company has
failure,
period,
it
market.
a
is
guided
must add that it is most
To
to
bus lines, but, insists the ICG,
reason
ture is such that if
can
for
accessory
still
tough competitive fight?
ruby
roads
frui¬
and
reason,
a
When
merger.
the
apparatus
has
mergers, and in
men
machinery
and
and
answered is, how
corporation become
can a
say it leaves
speechless; 'but that's danger¬
becomes
pastures
the
forever
there
company
motors
farflung
Supply
members
It deals in cotton.
&
thinking in the next few
Among the questions that
have to be
Corp.
equipped
Industries, formerly
the kitchen. As the property was
Corp., which
near
the
water, they bought a
fresh one's memory on just wnat got tired of pressing cars so now
me
makes dairy cans, cooking ware, canoe from the Grumman Aircraft
they are doing.
ous.
You might call my bluff and
Paint for the house came
pumping
equipment, lathes, Corp.
Wall Street analysts tell me that oil
from Socony Mobil.
insist. I
myself seriously.
occasionally they get a complaint welded steel pipe, electric conduit
Never let that happen.
J;
When they moved in the husfrom an
industry executive be¬ fittings, and operates the largest
There was a time, several dec¬
armored vehicle depot of its type banu wore a new coat he had ob¬
cause,
in analyzing a particular
ades ago, when railroads tried a
in the United States.
tained from the Fort Pitt Brewing
industry, they omit a particular
little diversification.
It took the
Textron, Inc., is a familiar name Co. His wife wore lingerie from
company on the ground that it is
form of owning coal
in the textile business. It has been the Philadelphia &
mines, but in
Reading Coal
many widely varied fields of
it seems there was some trouble
endeavor.
The reply of the ana¬ on a diversification rampage toe & Iron Co., now the Philadelphia
about that and they had to let
last few years.
It has uivisions & Reading Co. She also had a
lyst to such a complaint invari¬
them go. The economy wasn't as
which extrude aluminum home- t iamond manufactured
by General
ably is: "What business are y„u
enlightened in those days. Rail¬
building specialty products, man¬ Eieciric and a
in?"
limit.,I
aturated, and cannot be developed
further, it behooves a company to
other
into
man
electrical
Linen
10,000
serv¬
a
The firm
son
and
acquisi¬
fellow's
national
the
Much evidence
20
other
a
has
factories.
linen.
oil
ocean-going steamships.
Alex
attitude.
industrialist
another
that
say
admiration.
our
the
f
look
would
and
tools,
aircraft
parts, electronic and communica¬
tion
the
as
It
service
machine
ordinary folk, like newspa¬ textile,
pump,
per columnists and railroad presi¬
corporate names if operations have
dents, look with awe and .respect become
diversified
to
a
point
upon the versatility displayed by
where these old lines have dwin¬
such industrial giants as you gen¬
dled
to
relative
unimportance.
tlemen.
Your indomitable spirit,
More general titles are aacpted,
your determination to grow; wins
some
so
general that one has to
another.
ments
Alex¬
was
known
does
Speaking
many more.
in
$350,000,000 annual
business.
It launders,
rents and
supplies laundry for homes, offices
opera¬
manufacturer,
will
vacancies,
are
Service.
coke business to include fire¬
arms,
year
remaining. 10% at a
store, R. H. Macy &
taking
ice
another, within the last few
has enlarged its former coal
wells,
the
last
and
concern
washing, there is
acquisitions that put it
We
for this. Tech¬
are reasons
worlds
been doing it.
business.
own
name
defeatist
better than
concept
career
who wept
no new
always
another, world to conquer; always
some
laundry that he can wash
Technology and Taxes
nology is
the
ways
completely
We
now.
far
busin'ess
today's
the
His
conquer.
years
were
ander the Great. Our modern
brought
thoughts
outmoded
to
had
with sugar.
came
that
should
company
of 23
young man
because there
of
refine and distribute oil, and that
a
few thousand years ago there was
a
radio
There
of
years,
and
all the stock
owns
Yankee
Company.
new
still.
To you
manufacturer for the tobacco in¬
businessmen, even to come get a merger or an important dustry. Years ago it added baking
near standing
still is tantamount
acquisition of the assets or stock equipment and apparel stitching
to regression.
of one company by another, on machinery. Recently this tobacco
the average of nearly a hundred machinery
company
has moved
An Outmoded Principle
into
a month.
bowling
alley
equipment,
For more than 2,000 years there
atomic
reactors,
oil
well
ma¬
It is the most noticeable trend
has been a familiar saying. "Let
chinery,
juvenile
wheel
goods,
in a
new
world of business.
A
modern
the
this
the
paint, battleship construction,
kitchenware, trailer, power shovel
and
voting machine
businesses.
Still
extra
years.
General
the stock of RKO Radio Pictures,
It formerly owned 90%
of
dredge,
salvage
a
television
Thursday, November 29,1956
...
Inc.
in
3^o longer is the success of a busi¬
are
cor¬
and
Another
has
a
Network, a radio
chain that broadcasts throughout
New England.
It also owns Gen¬
eral Teleradio, Inc. which
bought
Combinations
look
of
executives
hold
the
of
bought
other
is
Tire & Rubber
years
as
Signal
Buffalo.
in
department
it personnel, key executives espe¬
the feature that is typical of cially.
Growth, even if it means
today's economy.
Expressed an¬ diversification far afield, tends to
it
corporation
to
a
position
major factor in such
diversified
Railway
substantial interest in
emerge
a
in the coat business.
concerns
icals, copper and copperbase al¬
loys, sporting guns and ammuni¬
tion, roller skates, power-actuated
tools, insecticides and fumd'H^s
cigaret paper, furniture and tooth
paste.
years;
is
way,
few
a
successful
one
so
General
other
is
It
a
each
Brewing Co.,> which
doing too well brewing
purchased two Philadel¬
manufacture of agricultural chem¬
you
represents
from
wonders at the talent and
have
widely
about as the unpopular money lender
uni¬ depicted in popular jokes and say¬
trend in ings. Likewise it is disturbing to
with
business.
holding
removed
one
where it is
should stick to his last."
the
that
poration
being overdone.
which is
craze
a
far
so
purpose
Pitt
not
beer
we
Says it
signifies specialization has given way to integration, requiring
executives "who can keep ten balls in the air at one and the
same time." Gives numerous examples of grotesque mergers,
concluding there is still wisdom in the saying "the cobbler
it manifests
that
Fort
was
they
Within
as
excess
f
the sound
original
the
com¬
far away from
so
recting genius.
technology, taxes, human desire for growth, use of
funds and need for broader markets, Mr. Stabler main-
cation,
1
well-known
the skill that must of necessity be
the proud possession of each di¬
Financial Columnist of the New York "Herald Tribune'
While citing
of
have got
panies
their
are
j
The Commercial and Financial Chronicle
of
our
wide
system must
con¬
executives
who
proauce
ten
the
diversifica¬
balls
in
the
time.
air
at
should
work
do
with
is
the
cream
poses
problem for the business
econ¬
poultry
that will demand
storage
omists, and
one
on
acquisitions.
It
same
have
was
mentioned
a
some
He
of
its
en¬
new
oil
had
nothing-to
its chief business, which
manufacture
and
brewing
that
petroleum
of
dairy
beer,
and
plants.
of
ice
the
processing
operation
A
ice,
products,
few
of
years
of
cold
ago
Volume 184
Number 55S0
.
.
The Commercial and Financial Chronicle
.
15
(2291)
i
,
he
had
tried
his
equipment, for
Eastern Aviation, Inc.
she
told
rayon,
him it
Rayon, in which
hard
coal
and
purchased
stock.
later
ore
concern,
shares
complained
Both the Middle East situation and
of
of
gave her headache
plumbing, hea t¬
Israel
will
withdraw
from
the
Russia
-
bit
a
the
of
believe
wisdom
cobbler
last.
You
the
further
don't
try
that
i
still
to
real
to
g
t
p
y
France
the
financial
Daniel
F.
r.
■Lramei
and
Secretary,
of
service.
and
Vice-President
vice-president
also appointed
publisher.
nianec
and
from
Russia,
against
by France.
1
President,
Mr.
Hoi-
schuh
succeeds the
retiring John
Moody, founder of the 56-year eld
organization, who will maintain a
continuing interest in the business.
.,
in
April,
then
Mr.
and
Vice-Presi-
in
1944 when
Chairman.
previously held
Vice-President and
of
since
1944.
He
joined
Moody's in January, 1922 and was
appointed Controller, a year later;
then
Vice-President and Secre¬
tary,
and
subsequently
Vice-
President-Treasurer.
,
Moody
T
,
c
•
-+u
Investors Service
s
.
e}se;
else; he has spent
witti
^
,
Feels
'
Africa
with
the
TTT-
Arabs.
We
*
must
means
inflation.
,
States
The
would
that
do
United
because
Boston,
Los
Angeles,
and
Atlanta,
Mass.;
Philadelphia, Pa.;
San
and
Francisco,
St. Louis,
Cat.; Seattle, Wash.;
Mo., and Washington, D. C.
we
his
advice, but they
7
passed aw-y
Nov. 25 at the
age of 68. Prio- to
his retirement in 1949 he was
with
C. H. Pforzheimer & Co.
has
also
J^udSg England
with
Mid
get
a
Corporation, 3520
Three With Mutual Fund
(Special to The Financial Chronicle)
SAN JOSE, Calif. — Michael L.
Bramns. Norman Christenholz and
Raymond
T.
connected
with Mutual
Shane
have
become
Fund
As-
sociates Inc., 1871 "The Alameda."
W-"-
CINCINNATI,
Beatrice
■Deaniut:
staff
of
322-326
of
the
Stock
L.
ju.
Bauer
xDaucr
New
make
the
on
has
&
Street,
York
Exchanges.
and
imcu
me
joined the
j
Company,
members
Cincinnati
_
faith
-
as
African
General Patton's Staff
Campaign and
World War II.
-
Wall
the
Sergeant all through the*
the march
to
up
with
now
Union Securities & Co.,
on
Berlin
in
•
Mr. Rowland is survived
by his widow, Alice, his
soil
William, and daughters Alice and Ruth.
in
correct
easy
forecasts
Babsonchai.Political
w !
.
V*
_
Gold
'
.
.
,,
«
,
^
,,
,,,
nTlos fa?th
h^e not lost at
break. Hence, 1 have
Babs0Rchart
area3
be manipulated by political
action for perhaps four or five
can
befor(Twe
years
g0 below the X-Y
line but ultimately
good
we
pay-the price.
will have to
...
.
Joins Wachob-Beircbr
•'
"vV" " -"
toTHE Financial Chronicle)
has
lido
,
Korea.
(Special
7
-
OMAHA, Neb. •— Loris B. Long
joined the staff of WachobJ
OtUXX
-
■
V/A
Bender
fl
UV.1XVW
Corporation, 3624 Farnam
I|
Street.
.
Price
The
of
Gasoline
oil
interests
Will
have
Rise
move
up
one-half
Harr'rmn Ripley Adds
notified
Washington that,
on
the
basis
solely of supply and demand, fuel
oil and, indirectly, gasoline will
cent
month
a
pipe lines and the most important
one has already been blown up.
England and France have already
gone on a rationed basis for oil.
think
that
the present uncer-
(Special to The Financial Chronicle)
CLEVELAND, Ohio — Henry
Ott-Hansen is now with Harriman
Pinley & Co., Incorporated, Union
Commerce Building,
<
•
Pv
Kendall
.
N
&
Y
important Blaw-Knox activity and market opportunity.
'
rif
synthetic rubber industry
solvent
soybean
change,
utility steam-electric
December 1 will admit Gladys W. Bianchi to limited
on
rmrtnershio
largest soybean extractor
plants
.
.
.
opened.!^ branehdirection No
m the of
Hotel under the
lard F. Murphy.
his
and
advisers
feel
the
Loewi Branch
Loewi
&
—
Co.
.
-
-
-
Wil-
in
either
the
the
natural
East
or
price
to
Internationalize
The
Middle
East
Dardanelles
oil
organized
on
SAN
FRANCISCO,
Calif.-
Hichard T. Gardiner has joined the
staff of Mutual Fund Associates
incorporated, 506 Montgomery St.
*
Now
nuclear
steel
many
a
growing list of petroleum and petro¬
.
.
and
.
a
wide
variety of facilities for
.
.
.
installation
using steel plant coke
steel
.
.
.
industry's first pickle liquor
It
first major U. S. installation
1
to produce nitrogen
oven gas
.
.
.
major additions to the
nation's chlorine-caustic soda capacity
first
com¬
.
.
and Britain's
.
synthetic rubber plant.
major
WAY
a
more
)
informative look at how
markets—METAL
AND
PUBLIC
we
serve our
*
SAN FRANCISCO, Calif.—Rob-
get
energy.
A
ert D. Harris, Lee C. Megan and
Douglas H." Pendleton are with
month ago the land there was the
Reynolds &
most
Street.
'
Co., 425 Montgomery
t
four
PRODUCTION—HIGH¬
WORKS
CONSTRUCTION—
I
THE PROCESS INDUSTRIES—PUBLIC UTILITIES
GENERAL INDUSTRY—send for
a
copy
of This
Is Blaw-Knox.
I
(Special to the financial chronicle)
are
valuable land in the world.
building
recovery
and
we
fields
the plum of the world until
a
k
piping systems of large
plants and for
hi
For
Three With Reynolds
the
the world's
j*
(special to the financial chronicle)
oil
...
pounds and other chemicals
uext Congressional elections. With
interfere with
.
.
*
half of the nation's
diate and fine chemicals.
T,T_.„+uc.v
JT
Joins Mutual Fund Assoc.
of
.
power
over
.
capacity and
~
...
tate-to
.
.
processing resin plastics, pharmaceuticals, and interme¬
FALLS,
Wis. —
Incorporated
has
Republicans have a chance of get¬
ting control of both Houses in the
..
Mr. Eisenhower favoring free enttrpnse, he would very much hesi-
are:
modern vegetable oil processing plants in
dozen nations
chemical refineries
CHIPPEWA
built by Blaw-Knox
or
extraction
«aU street, New York City, mem_
think he can
Congress by just going to the
people and telling them it is a
choice between paying 10c a gal¬
ion
lon more for oix ux s>euuu.J3 them
101
oil or sending
±
boys to Europe, and that he will
leave it to Congress. Therefore,
.
engineering and construction is another
the prototype design and much of the capacity of the
Hollister, 52
,
A broad service in
Among projects engineered
To A&mit to Firm
w
Engineering-Construction Services
win
supply* and demand.
Ohio—Mrs.
nas
Westheimer
Walnut
w
West, but would leave the
Westheimer Co.
(Special to The Financial Chronicle)
William,
son,
the
flow
With
Rowland's
Reaction;
Standa d
platform of Peace, Pros¬
perity, and Progress. He will now
either refuse to take any action
on
served
• jL 1-
fairly
Mr. Eisenhower was elected
scare.
meeting the exacting requirements of the
— a position callinrj
highly technical skill and direction.
Mr.
n_
have
and
in
Street firm of Eastman Dillon,
he
Con¬
Hampton Avenue.
.
still
Action
dts-
beenI
-
for
conditions, I
a real
slump
k
,
Composing Room and Press Room.
Mr. Eisenhower may
Leo R. Klein
—
I
1946.
to
based
^ 1^a^ the
tion
p?^e1^whiiM not obiect
™rth NATO
Hew.juld iDotogsct
I
(Special to The Financial Chronicle)
connected
_1»11
appointed in
tainty will drag on until the next
Congressional elections. If it does,
Mid Continent Sees. Addj
LOUIS, Mo.
x
semi-
in
Chronicle's mechanical departments
or
,
—
Frank Moore, Sr
tinent Securities
of
then
went ahead
wishes. Mr.
contrary to h-s
very
efforts
a
Africa
Eden
.
until oil is again coming from the
Middle
East.
The
Mid-East
has
Frank Moore, Sr.
now
iAin
number o2 /
a
was
we
had been on a Gold
Standard for many years. We had
a
natural ceiling and a natural
floor. Hence, it was
friendly terms with
the Egyptians and Arabs.
and
Minneapolis,Minn.;Pittsburgh
ST.
O
death,
chart,
on
ba.;
Cincinnati
in
Cleveland, Ohio; Dallas, Texas;
Detroit, Mich.; Milwaukee, Wis ;
is
J
his
but when I developed the Babson-
supply arms at least
England and possibly to Egypt,
Chicago
and
above
chance of
the Law of
will
certainly wishes to avoid anotner
offices
the
see no
Act
on a possible two- or threestruggle — which probably
year
fcr
i'.\V
•
of
During his lifetime, Mr. Rowland also was an activo
participant in Typographical Union No. 6 affairs and wa3
widely respected for his moderation and conscientious
all the pension funds and unemployment legislation, minimum
wage laws, and the Employment
ana tne n,mpioymi
elge win dump the problem in
the la
of the United Nations. He
branch
North
does
time
'
Chronicle's
of
---A
its-
headquarters in New York
City, maintains service offices m
Suez,
as
(1957); but 1957 may be
a leveling-off. year.
A big break
jpgy not occur, especially in view
a year in North
norm
"
Eisenhower
McCruden
posts
Treasurer
now
France. Not only did they not ask
Treasurer
knows
than
the
at
Mr. Rowland, who died in his 73rd
year, had soms
40 years service on this
paper, during four years of which,
from 1947 to 1951, he was Foreman and head of th£
next year
elected Secretary;
dent, and President
Mr, Moody became
the
Under
England,
Mr. Eisenhower is very much
disappointed in both England and
and
be
Expert's Conclusions
.
Mr. Eisenhower knows the situ-
We
he
\
and,
Canal
there
over
friends in and out of the
many
,
United
was
better
air-
several
1901,
years later was
far
Mollet. ;
ation probably better than anyone
to
and
year
"volunteers"
How President Eisenhower
want to be
Mr. Holschuh
began his business
career with
Moody s as an oii e
boy
so-called
The
,
backed
count
Formerly
be
would
her.
Eisenhower
So
and
Vice-President,
was
Arab
Egypt, supplied by muni-
Roger W. Babson
Treasurer,
Shea,
onea,
lost
it
advisory
Allan W. Wallace,
was
also named
,
nanol
also
basis
same
and to his
retirement.
States,
therefore, stands a better chance
cf winning the Arab world. Mr.
has
countries.
elected
the
on
an
months
inter-
trust"
and
the
Chairman and
Donald B. McCruden President of
i
v
"Chronicle." He had been in ill health for
in-
not
France,
Elects Officers
meeting,
.
passing of William Franklin Rowland in MicU
Hospital, Brooklyn, N. Y., on Saturday, Nov. 24,
event of deep
regret to the management of tha
"Chronicle"
England.,
supported
by
Moody's Inv. Scrviss
Holschuh
is
Russia
insists
the Dardanelles and Panama
be put
,
by
probably
annual
.
The
wood
Egypt pretends to represent the
Arab world, but what is happening- in Hungary should make the
Arabs fear Russia and no longer
Russia,
we
recommend you go
back to your office and write
your
column."
their
is
the Dardanelles must
that
supported
speaker,
Louis H.
.
1884-1956
internationalized.
between
E
might say, 'Stabler,
to
diversify.
As
a
at
and
trouble, it will
continue
The board of
directors
Moody's
Investors
Service,
that she
be
his
me
is
claims
following: If the Suez is
nationalized, the Panama
If
out.
there
saying,
with
should
Wxped
is
stick
stuck
and
you
in
should
have
last,
there
forecast
terested in the oil—that the only
thing she will insist upon is the
-
I
economic
sending American boys to Europe; 1957
may be "a leveling-cff year"; and Middle East struggle may
last 2 or 3 years with probably
inflationary consequences.
a
that
1957
versus
story of strange bed- Middle : East situation. She has
fellows, brougnt together in trie been
warned
that
if there is a
search for
diversification. It is an real
war,
she 'will probably be
endless story. I could continue ex.---1
T£
cept
4
are
for oil
more
ing and electronics.
IU is
•«
* *
analyzed by Mr. Babson who depicts: next
Republican Congressional election issue as 10 cents a gallon
by a company con"rojlea by the Ogden
Corporation,
name in
i;
WILLIAM FRANKLIN ROWLAND
*
made
leading
ifu jSfcitiorfaut
Prospects
By ROGER W. BABSON
Co.,
for U. S. A.
she
22552333381
Economic
of
Industrial
341,000
heaaache, he
pills
made
M. A. Hanna
iron
has
When
of
....
dress
new
was
product
a
■
f
Middle East and
California
He admired his wife's
and
■
(
hand at making
X-ray
a
•
•
BLAW-KNOX
Blaw-Knox
Building
•
COMPANY
300 Sixth Avenue
Pittsburgh 22, Pennsylvania
4
'1
■
.
16
The Commercial and Financial Chronicle
(2292)
yield.
By WALLACE
,
this
times
And book
Price
irregularity
saddle
to
con¬
stock
the
market this week and the fact
that
Treasury bonds retreated settled Middle East situation
to historic lows,
including a kept opinion cautious. Some
one-day break of sizable pro¬ of the technicians admitted
portions, was hardly condu¬ that there was no present
cive to better stock action.
*
*
marked
validity in studies of the vari¬
♦
is
little
since
the
favor
investment
ever
II.
U.
S.
of World
Lines,
considered
an
War
similarly, is
undervalued is¬
by most yardsticks with
sue
ones.
Nor
signs
yet
there
were
any
in the tax
issues hardest hit
trend selling
either
that
for
as
likely
candidates
rebound when the pres¬
a
"theories" the averages were
at
a
crossroads
where any
had been halted.
further
American Optical, for in¬
they have
stance, has been selling at a
for sometime, to join either
the bullish or the bear schools "support" level some $20 be¬
low its high of $53. Colum¬
and while their action
was
bian Carbon is a dozen points
relatively better than that of
below its peak, General Tire
the
industrials,
there
was
some 16 points, Kern County
no real
play in them which is
Land 15 points and Masonite
anything but a new story.
a
dozen and a half points.
Values in the Rails
Southern Pacific, Western
decline
The
would
gen¬
bearishness.
more
463-68
*
area,
where
Rails
sup¬
port had been found several
times
this
year,
attack with
the
was
under
of
consensus
opinion not too confident that
it would hold this time. Even
the
market
dour
more
spec¬
tators, however, looked for
a
Pacific and Monsanto Chemi¬
cal
area.
been
have
available
in
consequently, are to be found
in this neglected group. Illi¬ recent sessions at around $20
nois Central for one offers a under the peak prices.
With the
tax-loss
selling
being cleaned up rapidly, the yield of 6.8% which is one
Blue Chips Arrive at
of the more handsome around
possibility of a year-end rally
Respectable Yields
for a top name issue. The line
was
far
from
being aban¬
Some
of
the
premier
doned. The only question was is one of the carriers still
7
*
#
*
>
.
the extent of the traditional working t o w a r d complete "growth"
stocks have also
declined
sharply to where
end-of-the-year fillip. Sur¬ dieselization and the econ¬
their yields are starting to
prisingly,- even in the pleth¬ omies it will bring, so there
is room for
ora of
maintaining earn¬ become more respectable al¬
glum feelings over the
market's
immediate
future, ings well even if there is a though the question is moqt
whether or not they have re¬
there were plenty who were trim in gross revenues.
*
acted
fully. Aluminum Co.
looking for a rebound of real
size.In the case of Illinois Cen¬ which had spurted to where
its yield was a fraction of 1 %
tral, earnings this year are
Year-End Dividend Flood
was
approaching
a
1 Vi %
expected to match those of
A rather handsome flood of
last year. Yet the stock has yield lately on a loss of some
40 points from the peak. Du
year-end dividends was been
lolling below the $60
greeted calmly, most of the line
against the better than Pont, which showed a return
of well below 3% at its peak
good news showing signs of $72
tag on it in a rosier period
having been well anticipated. this year and the $68
price, reacted some 70 points
peak of
There were even some diver¬
last year when a lower divi¬ from the peak and. was in a
better
than
gent notes. Baltimore & Ohio dend rate was in effect.
3M>%
yield
bracket. International-Paper,
was*given to some backsliding
❖
$
on its annual
after a reaction of better than
dividend, some
*
#
if
Nickel Plate also has
of the estimates made in ad¬
vance
having been too
Celanese,
erous.
been
of
one
of
gen¬
a
bit
com¬
has plete its dieselization. This is
which
the
ground to travel to
longer de¬
pressed items around* sell'ng
at its pdorest price since its
1946 split, was able to
perk
up
when the'payment was
a
little concerned with
road
passenger traffic and
its de¬
#
£
rail
if
40
points, was also in the 3%
again.
class
Among the paper, stocks
that stood out in a group gen¬
erally under pressure was
pressing effect on earnings.
Marathon Corp. by virtue of
Lately it has been offering a some investment trust
pur¬
7% yield. The stock has been
chasing. Not as familiar to
far more romantic
than most
hiked.
shares
what
with
traders
as
the older
in
names
5-
a
the group, Marathon has not
split in 1951, and a 2- had the
Lukens
Steel
which,
in
same mass following
for-1
split early this year, and its
soaring around $130 above its
yield currently has
year's low of $42 had dis¬ plus a stock dividend in the
for-1
counted much
rather
good
restrained
news, was
when
the
year-end declaration brought
payments this year
to
$6
been around 4.7%
interim.
covered dividend
The
in
the'
many
cross
market
currents
from
tight
York
New
the
well-
on a
and with
a
increase in earnings
only recorded but pro¬
Among the higher yields
available is around
8%
in jected on into next year.
Cashiers.
Assistant
There
are
traditional
Export
some
Lines.
other of
the
article
time
statistical
sticks that back up
yard¬
this high
do
not
coincide
necessarily at
with
"ChronicleThey
as
in
those
are
of
this
any
the
presented
those of the author only 1
Eu¬
Gault,
shareholders
Division.
Assistant
The
both
of
First
Na-
tinoal City and County Trust that
would result from the proposed
Domestic
Cashiers
Matthew
fice;
communities
the
to
In
fully explaining the
bank's
position to shareholders,
Mr.
Sheperd's
letter
outlined
several
specific
advantages
to
As¬
are
benefit
concerned.
J. Cailan, Park Avenue Of¬
gene
well
policy
as
the
expected
at
the
time
Harry B. R. Brown and Fred¬
erick B. Edwards III, of the Do¬
merger
mestic
plan becomes effective:
are
as
dividend
Division; J. Garrard Holt,
Lexington-42nd Street Office;
Carleton L. Riley, 46th Street Of¬
fice, and John Reynolds Toomey
"Under
the
the
plan 2y± shares of
Corporation
would be exchanged for one share
of Domestic Branch Administra¬ of
National
First
City
Bank
tion.
(which includes beneficial inter¬
est in the shares of City Bank
Howard C. Sheperd, Chairman Farmers
Trust Company).
One
of
the
Board
of
First National share of First New York
Corpora¬
City Bank of New York, in an tion stock would be exchanged for
informal
interim
report mailed one share of County Trust Com¬
on
Nov.
27,
gave
shareholders pany. In the opinion of counsel,
further
information
about
the the exchange of shares would be
plan of the First National City tax-free under Federal laws."
First
Bank and the County Trust Com¬
pany
Plains,
White
of
form
a
holding
First
in
New
Nov.
Y.
N.
three
said:
York
der
subsidiaries
the National
was
ditions
made
chartered
Bank
will
dends
be
initiated
ration
at
City
2*4 shares of the
on
Corporation equivalent to that be¬
ing paid on each share of First
The
National
City Bank."
its
Company,
County
each
trust
the Grace
would
of the
consolidate with one
York
be modified
tutions would
their
flect
name
while
operation
tional charters.
to
under
'■
National
announced
Bank
of New
Nov.
on
that
26
;
*
approved
increase in
an
the
bank's capital and surplus to $10
million through transfer of $1 mil¬
lion
of the other two insti¬
names
'
has
subsidiaries, each in effect
retaining its present identity. The
First National City Bank of New
the
-
*
the board of directors of the bank
three
York would retain its
:
■
Ralph S. Stillman, President of
affiliate, and
Company
Trust
«
Trust
Farmers
Corpo¬
rate which will make
a
the dividend
City Bank of New
Bank
the
on
shares of First New York
un¬
Act.
expected, subject to con¬
then existing, that divi¬
*
York,
>%■ %'.r
■
is
"It
15
First National
York
Regarding dividends, the letter
to
to be
Corpora¬
issue, page 2080
and
Nov. 22, page 2200.
Under
the
proposed
plan,
First
New
York
Corporation
would
have
our
New
company
tion, reference to which
from
undivided
profits. The
transfer enables the bank to make
re¬
loans
na¬
In the final struc¬
one
it
ture, the holding company would
own
three operating banks. The
letter stated:
*
,?
of
up
to $1 million
customer
limited
was
to
any
whereas previously
to a maximum of
;
-
The
Grace - National
Bank in October, it is stated, re¬
"The
mergers
would
require ported a 26% increase in earnings
for the first nine months of this
the approval
of the owners of
two-thirds of the shares of. each year over the comparative period
*
institution. Upon such approval, of 1955. As of Nov. 19, the bank
had $4 million in capital, $6 mil- >
all shareholders of the presently
lion in surplus and $1,275,843 in
existing institutions would re¬
$900,000.
'
ceive in exchange for
their
undivided profits.
pres¬
'This is
ent shares the stock of First New
York
in accordance
with
terms.
Those
shareholders who may not wish
to accept the exchange would be
entitled to an appraisal of their
shares
and
a
payment in cash
therefor, as provided in the Na¬
tional Bank Act.
While our plan
provides for
Charters
institutions
change
the
in
National
to
the
of
case
two
operating under
State Charters, this change is not
essential to hpiding company for¬
mation or functioning.
Holding
companies
now
may
include
Bankk, National Banks,
Formation
of
a
State
both."
or
holding
com¬
of
the,,State Banking Code is under
consideration is not inappropri¬
ate, the letter said. It added:
pany
at a time when revision
important milestone
history
of the
Mr. Stillman
said, "since the ba nk will
now
be
able
to
participate in
major
lending
operations."
He
added that "a substantial part of
the
bank's'increases
in
capital
and surplus were made through
transfers of earnings." The Grace
Bank, which conducts a general
banking business, developed from
customer balances held by W. R.
in
Corporation
the
agreed
the
National Bank,"
Grace
.
an
contrary, the plan of¬
fers advantages and future pros¬
pects
which
would
not
be
Grace
Co.
&
as
a
service
large proportions, W. R. Grace &
Co. decided in 1915 to formally
organize
the bank
York Charter.
under
a
New
At that time it had
Of
of
Further,
the
letter
does
the
not
points out,
"sidestep"
New
Nathaniel
been
York
or
State
of
the
National
Grace
bank
the
Bank
of
Mr. Paine first joined
in
1943
and
has
been
of the domestic section
credit department.
Manager
of
the
law
confining- branch banking to
single district. Rather, it says,
it represents a different concept
and approach to banking proced¬
E.
Paine,
Jr.,
has
appointed Assistant Cashier
New York.
if
♦
$
a
ure
which is neither
tried
bank
and
that
there
new
are
nor
un¬
several
holding companies in New
Shareholders
tional Bank
New
York
unanimous
&
of
Sterling
Na¬
Trust Company
have
vote
approved
of
Continued
93.7 %
on
;
its
to
customers
in
Grace's
South American trading business.
When
these
balances
grew
to
trading
.
the holding company proposed by
the Bank and The County Trust
-
T
merits of the holding company or¬
ganization will still exist."
;
41-year
capital'"of $100,000 and surplus
$25,000 realized from the sale
1,000 shares of stock at $ 125
per share.
On June 19, 1924 the
bank was reorganized as a Na¬
achieved merely through modifi¬
tional
Bank with capital of $1
cation of the state law on branch
million, surplus of $1.5 million
banking. Whatever direction re¬ and
undivided profits of $160,480.
vision of the law may take, the
*
*
*
"On the
contravene
expressed
new
The
Vice-Presidents
sistant
Company
views
with
{an¬
appointment of two
Assistant Vice-President and five
steady
[The
28
Nov.
on
Bank. York State, operating successfully
City
National
First
The
of
not
Higher Yields Available
against last year's $2 payout.
American
Caution Predominant
CAPITALIZATIONS
called
as
Some of the better values,
good floor somewhere in the
420-40
refused,
dries up.
sure
#
*
Bankers
and
OFFICERS, ETC.
REVISED
nounced
end
many
To the followers of market
erate much
NEW BRANCHES
NEW
more
market
stock
ous
were
CONSOLIDATIONS
down
averages. a potential of being able to
of Certain groups were staging double in price on statistical
much
tax-loss
selling* that their own bull market while considerations if the group
served to blunt meager at¬ at the same time others were ever returns to popularity.
tempts at a rally. Shipbuild¬ putting on a pretty good show
Exploiting Tax Sales
ing shares, enjoying a rather of a private bear market.
With all of the tax selling
*
$
*
good whirl on expectations of
new
orders
to
offset
the
Steels, aircrafts. coal issues, currently keeping the list re¬
bottled-up' Suez Canal, also shipbuilding and sugar stocks strained, one of the pastimes
bumped .into rather vigorous were the bull market items. neglected in recent years
when prices were advancing
profit-taking that made them Chemicals, aluminums, in¬
steadily was revived. This is
retreat rather rapidly at ternational
oils
and
paper
the one of seeking out
the
times.
stocks were the bear market
Evidences
News About Banks
earnings.
than double
the market price. The bargain
money plus the expectation of aspects of this issue are also
a future hike in the discount
due to widespread disinterest;
rate again as well as the un¬
shipping companies have had
ships,
tinued
year's
value, including the
drastically
STREETE
^Thursday, November 29,1956
.
The stock lately has
priced at around four
been
THE MARKET... AND YOU
.
of
by
of
page
a
the
31
.
'
Volume
.Number 5590
184
.
.
The C€rmmercial and Financial Chronicle
.
if it could
;and
The Current Credit Picture
credit
*
and
and
stop
Private
who criticize
do
misinformation
might
There
is
discussion
much
credit.
outstanding
cussion
been
has
Such disparticularly
widespread
the average.
It
con¬
if
in
be
the'
same
of
few
a
Partner, Booz, Allen & Hamilton, Chicago '
in¬
not
.
Twenty-five
percent more executives needed by 1965, yet
five percent more will be available under present development
properly
or
handle
of
program
partner,
individual should
an
reason
why
not been able to
credit
within
held
reason
the
Sees Market in
absorbed
management
that is
management 1
better
a
large
day
is
also
comforting
know
to
govern¬
commercial credit totals today
debt
is
involve
not
dollar
dan-
a
credit position.
much
as
Market
five
studies
the
...
,
do
for closer scrutiny, but here again,
the credit situaautomatically improves
it-
tjme
as
H0n
.
goes on,
judgment in the acceptance
of credit.
High dollar totals of
credit in themselves, unless they
are at
an
astronomical figure, do
,
.
_
„
is
There
much
also
market
misunderstanding
and
confusion
about
the
The
that credit cost of the hire of money.
gotten
entirely present rates of interest are rea*
sonable
when
compared
to the
have
If credit has been accepted on a
rate that
market is very over-sold and due
for
a
strong
1 a
rlse from cuiient
levels. strong
in effect when the
v^as
not
need
too
be
much
concern
With the
dollar presently having the purchasing power of half its value of
a decade ago, and with a growing
population, a growing economy
high credit totals.
about
high rate of interest,
not paying a
JACKSON,
Griffin
is
Miss.
conducting
securities
a
It is only when we make a com-
business from offices at 1315 West
parison with the days of unfortunate synthetically low rate of
interest that we assume present
Capitol,
More
debt
alarming
of
total
the methods
are
Credit
attained.
-
,
,
LONG BEACH, Calit
....
.
,
the
credit
consumer
by which these totals
If sound credit.prin-
not applied and-credit
practices become loose and credit
terms
unrealistic,
then there
should be every concern, by those
ciples
and
When
ycu
have
a
tremendous
....
few
Very
executives
are
structure,
the
..
.
confusing.- Nor can one with
quence
of misinformation about certainty surmise what may be in
these high credit totals.
If they the minds of the people who are
are
publicized day by day with charged with our monetary rethem-however, is the conse-
words
time
of
to
consumer
ment
issued
from
are
sponsibilities.
time, they can easily de-
velop such
decision
warning
state of mind in the
that he may
reach a
a
to
concentrate
on
of debts and curtail
Should he
pay-
buying.
restrict his buying and
As far
of
credit
ruie
to
as
government regulation
concerned, the same
to
be
made
to
apply
government in its credit regu-
iati0n
desires
as
is
applied
to
.i/^S.ifdAress ibr Mr" Hei,ra£nn bef?re
12th Annual Commercial Finance Industry
Convention, New York
E. A. Hay
City.
'
|
executive
of
is
competition
which
for
increasing
executive
makes
it
in¬
one
shortage. It
also is indicative of the
talent
difficult
and
costly for any company to go into
the open market to obtain needed
Two other factors
ing
to
contribut¬
are
the
shortage of qualified
First, World War II
subsequently
the
wasteful
draft policy have substantially de¬
layed the development of large
executives.
and
of
these
situations,
age of executives
average
to
creased
the
has in¬
alarming point. Of
largest com¬
an
are
in
over
—
Beane.
Tt/T
j
•
_
jj
T
—
Modinos
secretary
iVAUU1Ilua>
c
'•
management-, development task
of
considerable
the task
•magnitude.
of
our
But
is much greater than re¬
placement. If the
rate
of
growth
national product can
gross
used
as
creasing
indication
an
executive
needs,
increase
an
in¬
of
a
of
pro¬
about
-
Draws Three
-We
have
no
Finerman
111.
—
William
we can
(1)
this
attempt
to
considering this
draw the
following
The scarcest
commodity in
country of
today is executive ability.
prosperous
(2)
The
need
for
ours
has joined the staff of
Podesta & Co., 209
Cruttenden,
South'La
of
the
Street, members
York and Midwest
Salle
New
that would give Stock Exchanges. Mr. Finerman
other l'
people confidence in its at- was formerly in the investment
*
'
tempt to regulate credit.
When business in California.
TI.,^
.
.
must
pro¬
to
meet general management re¬
quirements. Above all, it must
provide for each
executive posi¬
of authority
requisite supplementary
organization
which
will
enable
tion
reasonable span
a
and
the
each executive to spend sufficient
time with each of his subordinates
to
foster their
Selection
development.
and
Appraisal
An
to be
of
appraised; (2) establishment
standards
of
u
executives
t i 1 i
z a
planned
executive
for
develop¬
ability are un¬
large scale through¬
* programs
of executive
on
a
per-
so
o n
of
a
development
universal
progress. The eight
characteristics which
identify the promotable executive
are
position performance, drive,
problem-solving ability, leaders h i p,
administration, initiative,
motivation, and creativeness.
of applicable devel¬
techniques
should
be
made
on
well
may
individual
an
that
basis.
certain
It
weak¬
will be prevalent through¬
executive group. If so,
nesses
out
be
the
these
can
cation.
be
met
Group
by
edu¬
group
programs,
however,
should not be relied upon entirely.
Compensation is obviously
important element. It provides
incentive
to
while
participate and
being trained.
an
an
in¬
Executive development is im¬
portant, stimulating, and gratify¬
ing. We shall be judged most of
all by the men we build, men who
in
the
future
destinies of
our
will
have
the
business in their
hands.
industry.
positive note, at
history
has opportunity for young men to
advance quickly in industry been
no
t i
appraisal techniques; and
well defined plan for coun¬
selling on appraisal results and
(4)
terest
ability during the next 10 to 15
will be far greater than the
supply and will increase the ex¬
isting
shortage
unless
well
(3) On
S.
It
adequate
delegation of
responsibility and include oppor¬
tunity for broadening specialists
opment
increasing demands for
ability
arising
from
greater complexity of business as
it grows in size, Mr. Ellis pointed
out
/Special to The Financial Chronicle)
incentive.
for
measure
dertaken
CHICAGO,
dividual
Selection
Conclusions
made
.executive
ment
Joins Cruttenden Staff
normal business or to an
functions, responsibilities,
working relationships. It must
provide recognized and attainable
lines of progression which stimu¬
late competition and provide in¬
a
nc
St^m' Pulaski"1 vice president
a^ as^stant secretary and L B
to
as
and
proven
factor,
®ia^.Modl"os^as/® f?
Modinos & Co., Inc., to continue
his^ mvesltment businei3S- Office s
^0th|„n,™ S" Mr,
422 South Third Street, are Mr.
tunity of practicing what they
learn, of learning by doing. iThe
plan of organization must be clear
f ormance;'.(3)
Nich-
TVTi aK/\1
which executives have the oppor¬
termination of executive qualities
age
executives
.conclusions:
WILMINGTON, N. C.
«
so important to ex¬
development as a sound
organization structure within
50.
over
the
of
out. Even without
Forms Motfrnos Co.
executive
ecutive
companies will need to
be replaced. This alone represents
Edward
business from offices at 716 Adair
Avenue. He was formerly with
Merrill Lynch, Pierce, Fenner > &
development
the
during the next
these
indicates
Hay is conducting a securities
At
other factor of working
nor¬
of 65. An ad¬
are
that
75%
retard
or
can
effective appraisal program
includes four elements: .(1) de¬
age
64.5%
means
years,
now
organization
conditions is
executives in the 400
11.5%
no
vide
managerial ability.
25%.
Opens
ZANESVILLE, Ohio
A.
its credit in a way
the
country
with McCormick & Co.
a
individconcentrate wholly on the pay- ua\, a credit man would scarcely
ment
of
debts, we would soon ask a financial officer of an overhave a readjustment on our hands, extended company that was in fiThat readjustment could be seri- nancial difficulties for advice as
ous if he continued his buying lag
to how to handle credit. The Fedfor any length of time.
erai Government has not handled
.
dication
executive
years
is
ought
family of the
the
.
jection of the rate of this growth
we have had to work
with managed money policies, and
»
among
be
•
and
high dollar total of commercial or these have varied so much from
LUilbUluUI
YV lid I
consumer vlvUlt*
credit.. What vIUvo Lvil" time to time that A! vvfwviavij they
does con- tllllC lv tlUlv UlClw frequently ViiVJ
cern
turnover
15
credit standard,
competent
worried about
a
greater than during
period. This increasing
secretary-treasurer. Mr. Johnston
and
Mr.
Moore were
formerly
focusing of attention on your debt
it is not properly
analyzed, wrong and harmful impressions- can be created. :Immediately. some groups demand that
who indulge in these unbusiness- the government step in and regulike practices, over the measure fate the conditions of credit. Ever
of credit they have extended.
since'
we
abandoned
the
gold
are
losing executives at
the prewar
This
-.Grill^
time, companies
same
rate one-third
ditional
Form Grill-Harkness
(Special to The Financial Chronicle^
Harkness & Co., has been formed,
with offices at 110 Pine Street to
engage in a securities business.
Officers are Bruce A. Johnston,
president; K. R. Johnston, vice
interest president; and Bernard J. Moore,
high charged is a cost of doing business
are that is deductible
the
than
earnings,
your
been
of
individuals.
level,
greater than before the
At the
panies,
debt, like every other factor porate structure any'interest fate
in your economy, would establish is "immediately halved so far as
new peaks.
•
the net cost to the company is
concerned, because the
governAttacks Unsound Credit,
ment comes jn and takes half of
Not
a
mal retirement
rates are high. With the inflationand
a
tremendously
expanded ary tax load we have, it is also
business, it would be logical that well to remember that in the coryour
46%
of
<
.
plan
stimulate
Lawrence L. Ellis
have
result
M.
James
—
The
numbers of young men with exec¬
utive
potential.
PartV-illy
as
a
J. M. Griffin Opens
using the usual yard- natural law of supply and demand
evaluation for credit, there was in being. Historically, we are
sound basis,,
stick of
coal, machinery, steel,
are
airc^a^» office equipment and natural gas and oil. Technically, the
sound
a
program.
require¬
have
:
(1)
niques; and (4) a comprehensive
competitive
compensation
exec¬
war.
-
Interest Rates Are Reasonable
-
II,
rate
"executive
and
increased at
the
of
1-
a
is already
utive
Industry Groups currently out¬
average
t
of
are:
organiza¬
(2) effective ap¬
praisal methods; (3) selection of
applicable development tech-
man¬
ments
.
the
of
War
lows
develop¬
quotient."
tional structure;
Since World
has been
support
„
mean
out of hand.
active.
performing
and
October
early
investment
.v.-'>'f'
four elements in any
productive program for
acute.
East. ln spite* of these, develop meuts, their have remained far
prices
above
and
are
These
ent
established a firm low by ena zone of strong investment
.
There
ment
age
,.
,
promotional potential..
with
agement
470-480
level in the Dow Industrial Aver.
capacities, it provides for
better
performance
in
preseht
positions as well- ag developing
and the short¬
during the past
indicate
weeks
,
dividual
technological
speculation
High credit totals should do lit- self by reason of tne monthly paytie more than give us warning that ment
plans under which it is
we must continue to exercise care
contracted,
conditions
.
development,
m
WW,IM,IIWI1
■-
necessarily
is
because
pace
r
aema asom ethi n g
as they did, for instance,
in 1929.
Investors Research Co. .further
that should
Our security credit situation today states the time-proven..lest of a
concern
is much sounder, in the sense that strong market is its ability to ab~
everyone.
Henry H. Heimann
only a small part of credit is being sorb adverse news.
During the
Whether : or
used for the purchase of securi- Past five weeks, the market has
not private debt is out of line de- Rggt
Housing credit though exalternately hit by poor thirdpends upon many conditions and ggedingly high has within it an Quarter earnings, doubt of the
facts: Unfortunately, too frequent- amortization
plan
or
program, election outcome, Eastern
Euroly these conditions and facts are Housing and mortgage credit, how- „P^a£ revolts and-now the threat
brushed aside and a generalization ever, is now at a level that calls ef, Russian action m the Middle
not
business,
particularly
any
It
to-
development
has
not
kept
ny0rH^Alcl RnndltlCHI
management and to
ment
gerous
of
small.
or
important
Very
|(
tribute
a
managerial
improve
to
,
The purpose of executive de¬
velopment is to improve executive
performance at all levels. By as¬
suring maximum growth of in¬
Development of executive talent
an
important segment of the
is
regulate its credit,
Investors Research
paying record of the consumer.
It
because the
high, we are in
program
management
The
are
a
pool growth rate.
on
Here and there com¬
both to credit
the
made, that,
presenting
government
a
could be expected to do
that the high over-all private and
totals
in
condemned, and above all there
no
and alarming increase in average executive's age,
of the observations made by Booz, Allen & Hamilton
^
a
is
government.
is
are some
programs,
why
reason
no
credit
which by its own performance has
built up a record
of
publicity were
given to the
credit
that
be
heavy losses in bad debts, but on •'
the
whole
consumer
credit has
useful
measure
By LAWRENCE L. ELLIS*
to
panies which were not competent
credit.
might
do
company
consumer
continue
_
about
more
will
record of consumer credit by and job than private business in credit
large is good. The losses, even in practices, v
' "•••' '
the worst periods of depression,
;
'
totals
have been
sumer
managed
Providing Qualified Executives
To Overcome Growing Shortage
incompetent busi¬
or
whole
the
It is well to remember that the
these
days about the high dollar
has
credit situations is
repayment and to curtail buying.
of
own
debt
opera¬
managements in the field of
credit
credit
to concentrate on debt.*
cause consumers
it
The'fact
so.
ness
of publicity given to government
same measure
and
experienced
serve as a warn¬
debt; and is concerned that the spreading of
business
ernment,
high credit dollar totals without looking further
soundness; does not deny high totals
ing; wants the
*'
its
own
its debt much better than the gov¬
Nationally known credit expert surmises that when the Gov¬
ernment properly handles its credit better than private business,
then the proposal for government credit regulation might be
listened to with more respect. Mr. Heimann criticizes those
into its
its
deficit
own
respect.
more
Vice-President, National Association of Credit Men
Executive
regulate
control
its
tions, it might be listened to with
By HENRY H. HEIMANN*
17
(2293)
time
a
in
Joins White & Co.
more
our
economic
(Special to The Financial Chboniclk)
BLOOMINGTON, 111.
S.
Kuhn
?reat.
has
become
—
Louis
associated
with White & Company, 216 West
•From
25th
a
talk
by
Mr.
Mid-Continent
American
R-nkers
...
Nov. 16,
1956.
Ellis
before
the
Trust
Conference^
Association, Chicago,
Washington Street. Mr. Kuhn
was
formerly with Barrett Herrick &
Co., Inc.
V
13
.
Thk Commercial and Financial Chronicle
(2294)
Appraising the Business Outlook
For the Long and Short Ran
By EDMUND A. MENNIS*
)
Senior Security
Analyst, The Wellington Fund
period of six months or so in the
If we get much
beyond
an
As
economic growth rate will not be as rapid as
Gross National Product will increase 40% by 1960. Author
describes data businessmen should watch, and includes signifi¬
cance of recent national election and the threat of war.
hour
the
on
and wor¬
;iour,
of
rying not only
work,
economist
but
normal
when it is nor¬
On
mal because it
could
can
with
become
bnormal. Al¬
;
ple
might
criticized; it
taking
is also
in
known
to
consume;
Edmund
A.
Mennis
that
plant and equipment
becoming more
more concerned with the nation's
here in 1955.
can
economic well-being.
Product
add it also presents a
challenge to the economists.
He must snarpen and perfeet
his tools and
increase the
might
of his figures so that he
accuracy
to the
report
can
patient on the
More im-
condition of his health.
it
year.
give it to busi¬
you can
our
two-fold
last
up
consume, and this is done
form of expenditures for
the
businessmen and people
^re
nation's
the
of
used
was
tions to inventories.
generally
interested and
or
in addi¬
About 8%
of
nation's output was consumed
The third thing that
happen to the Gross National
is
government
for about 21%
put, divided
can
claim
it; this accounted
consume
ana
of the annual out-
about
two-thirds
the Federal Government and
third
state
to
ments.
Finally,
shipped
local
and
our
abroad
one-
govern-
output
and
to
can
be
consumed
portant, the economist has the re- there. Actually in Gross National
eponsibiiity of presenting his find- Product figures we look at only
ings in such a fashion that they the net, balance of our exports and
are understood by every business-^imports, and since this is so
negman.
This challenge is especially ligible it is not a matter of any
critical
cause
the
at
an
time,
present
be-
feeling exists
uneasy
We
so.
get
number
a
activity
economic
on
of
The
overall figures.
our
thing to remember in the
consumption
Product
reports
moving
in
concern
in
£0mi?uq"ari5rs next six montns or
ab°ut.tbe P^ients
heal h in the
ds
is
of
Gross
that
consumed
National
certain
things
m
of
the
such
as
u*
the way people 'uge
food and
upward,
clothing and services, change only
Consequently, a temperature read0Ver a period of time,
mg at the moment is certainly in
Government
expenditures
are
orderSomewhat less stable, but from
a
other
direction
than
graduafiy
,
•
Tools
The
to
describe
the
figures
thermometer and
our
In the past few
heard more and
mysterious thing
it.
on
years
we
have
more
of
that
called
governmental budgets
Use
to
Gross
National
Product.
This is really just a handy device
to measure
economic
changes in
a
country's
Gross
health
Product is the
National
measure
of the
na-
tion's output of goods and services
in terms Of market value.
It is
figure—currtntly some $413
is the price tag on
our total output. By watching' the
changes in the factors that add up
one
billion—that
to
this
total
services,
output
we can
nomic future.
our
the
to
and
more
services
i
Now
attention is paid
of the goods
that
make
Product.
let
look
us
at
up
*
token
off
and
second
the
Gross
Gross
tional Product briefly from
two
directions:
first, how
Droduced
it
market
and
is
it
is
our
an-estimate
work
the
and
dollar
labor force,
of
the
times
^
tw0
'We
hours
they
multiply the result
amount, of
~^7addr*sB
goods
by
and
by Mr. Mennis before the
Germantown Exchange Club, Nov. 8, 1956.
is a funda¬
method of self-
our
with abun¬
also blessed
are
as
♦
+
t
h
the f"1?™ but
8iven p?*nt
certain
the trends 0131 shaPe
The' short-term
t
conCGrnq
1IS
problem is
*LorG flnd
nnp
cerns us more ana
,
that is much more difficult to
forecast.
do
is
What
to
we are
attempting
pinpoint- with
a
fair
<*^6 °f accuracy the fluctuation
arOUlld
nation,
a
is
have
we
Federal Government
economic
in
fact
the
that,
the
given
major role
a
beyond the provision of serv¬
funds for things we have
goes
ices
or
decided
This
desirable.
in¬
role
cludes
the
policy—first explicitly
stated
in
the
of
Act
1946
Jkmpiuymtnc
that
—
will
Government
maintain
a
The
Federal
the
act to moderate
fluctuations
economic
ment.
Full
in
National
Gross
the rest
Product
order to
high level of employ¬
Federal Reserve Sys¬
becomes
the long-term trend for a
As the result of
might
review events in 1955, which will
certainly be marked as one of the
phenomenal
years
in American
economic history. In that year the
American
people consumed the
largest amount of Gross National
As
starting
a
pcint,
for
sums
durable
goods such
Government
•next year.
busi¬
Increases in residential
other
and
of
areas
private
con¬
public
particularly expendi¬
highways, should prove
area,
in the latter
part of the year by increasing
expenditures on the part of busi¬
ness for plant and equipment and
The recent national election and
the threat of war in the world
inventories.
for
and
State
local
more
increased through¬
and the Federal Gov¬
ernment finally got into the act
toward the
end of the yepr by
dynamic.
raise
the
these
of
cast.
question
The
of
forces
two
election
expenditures
left us much in the
position
increasing its demand
the
of
on
the
na¬
Toward the end
confidence
increasing, labor ap¬
full employment and
productive capacity reached, price
inflation is always a threat. Con¬
sequently, the money managers
the
of
Federal
System
available
for
business and
consumer
that
view,
outbreak
year
marked
our
hostilities
the
demand
not
become
of
of
parts
the
various
supports the
services
world
goods
for
in
and
that this country produces.
borrowing
Summary
progressively t.-ghter in or¬
der
to
prevent prosperity from
becoming a crecit inflation boom.
The
has
assuming we do
involved,
and
ourselves
Reserve
funds
permitted
have
political
before it took
same
progress
in the last few years.
From a purely economic point of
with demand
proaching
fore¬
to
place, and consequently its eco¬
significance does not seem
especially important except inso¬
far as it sustains the high level of
our productive ca¬
strained to the limit;
was
as we were
impact
our
nomic
year,
pacity
the
on
seems
out the year
In
then
summary
how
do
we
appraise the business outlook? We
have
reviewed
the
long-term
1956 was somewhat
Although
Gross
Na¬
tional Product continued to
depressions.
ness
and
struction will not be great; but the
supplemented
was
different.
cushion
expenditures
expenditures, al¬
though not increasing markedly,
will be at least sustaining forces
tures for
business
or
upward
construction
to get
booms
move
automobiles and appliances and
homes.
This tremendous demand
as
sphere, The
Treasury in the fiscal sphere and
the vast array of other govern¬
ments ag( ncies are used to temper
the monetary
in
tem
to
they did throughout 1956.
as
we
Product in history and spent rec¬
ord
to offset
the somewhat
higher prices of the new cars.
Moreover, consumer expenditures
for non-durable goods and services
pected
should continue
helpful.
role tion's output also.
This
activity.
over
Here our discussion
that they
forces at work and find
exert
move
upward pressure on the
an
upward, the rate of increase was economy. An almost 40% iiyrease
More important, the con¬ in Gross Natiohal Product uy 1965
sumption pattern of .Gross Na¬ is a reasonable expectation. Where
965. The expected growth in our tional Frocuct changed. The con¬ can the businessman review the
population and our labor force is sumer, who had been a major long-term factors and see ho\y
too well known to require com¬ force in the 1955 market, decreased they are
combined to * get fore¬
The best source I know is
ment. As important as the growth his expenditures for durables such casts?
of population is the great revolu¬ as
automobiles,
appliances
anil a remarkable document prepared
tion in
income distribution that homes. Business spending for per¬ by the staff of the Congressional
the
lor
Now
mgke for
f'rbduct
in
the
will
Creation
middle-income
vast
that
slower.
a decade from now—say
resulted
has
factors
larger Gross National
a
of
market
a
manent facilities increased
Joint Committee
mark¬
enormous
this
has
become
demand for the
been
that
its
of
one
con¬
business
own
best
for
Of
has
cus¬
The
answer
on
the Economic
Report, called "Potential Econom¬
ic Growth of the United States
with, edly,
but b siness expendilur s
inventories,
although
still
veniences and comforts of life— growing, were at a lower rate.
and, incidentally, for the leisure Finally, the upsurge in govern¬
time to enjoy them. So our work ment
expend tures
in
the
4th
week may well become shorter in quarter of 1955 did not continue
the next 10 years.
so rapidly.
As a result, the econ¬
Still another factor is the tre¬ omy moved upward at a slower
mendous spending of business for rate and now seems to be on a
modern equipment to meet this high
plateau.
The
challenging
increased consumer demand and question at the moment is whether
to offset the higher costs of doing we go up or down from here.
business, especially higher wages.
Upward Growth in First Half
(Parenthetically, a corollary of
an
During the Next Decade," and it
is
available from
the Superin¬
tendent of Documents in Washing¬
In it you
ton for 15c.
the
and
statistics
will find the
discussion
to
support the $570 billion figure—
or enable you
to make your own
forecast if you wish.
the
to
Now
forces
short-term
in
reviewed the
and
find
that
upward movement
economy
well into next
they suggest
1957
immediate
more
problem—we have
our
an
to that question can
year although the rate of increase
will be not so great as the upsurge
expenditures,
in 1955.
What are the things for
productivity per worker (or out¬ guess and my suggestions for the the businessmlan to watch to de¬
put per worker, if you will) is things
to
watch
to
determine termine whether this forecast will
expected to increase at the rate whether my guess will work out. work out? The volatile areas are
close to 3% per year over the next My best guess is that for the re¬ consumer
spending for durables—
decade, compared with an average mainder of this year, and at least automobiles, household appliances
of 2% per year during the past the first part of 1957, we shall and homes.
An equally volatile
50 years.
This extra-1% com¬ continue to move upward at a area is business spending for plant
pounded annually is a mighty po¬ moderate rate. Business spending and equipment and inventories.
tomers
As
for plant and
equipment.)
result of these
a
factor
tent
in
increasing
our
na¬
only be made in probabilities. I
should like to give you my best
for, plant
and equipment
should Any significant drop in these
tional output, a-.
'
Ncw:What do these basic forces
continue, although not at the rate
of increase in 1956 compared with
at work
!
1955.
mean
for the economy
the long
rip?
They mean not
stagnant
or
mature
but
one
will
a
that is
in
dynamic,
total
and
in
a
economy,
one
that
in
terms of the product available for
each
grow
individual.
.estimate
uct in
grow
A governmental
of Gross National
1965
Prod¬
suggests that, with the
suggest,.that the relatively
optimistic vifeW 'we have1 taken
Nevertheless, many business here should be modified.
upset by shortages of
How can the businessman watch
and
these things? The best one source
result
these
expenditures of
reliable, accurate information
been
deferred
until
next
I can suggest
is put out every
With respect to inventories,
month by the Superintendent of
plans
were
labor and materials this year,
as
a
have
year.
the
of
rate
pected
to
several
accumulation
increase
months.
in
Not
is
the
only
ex¬
Documents.
next
will
$413 billion. This
may
well prove conservative. The fun¬
damental fact is that the working
Council
of its
future growth.
of
uihent for the money you can get
By charts, tables and brief
today.
capital expenditure program.
comments,
should result from the con¬
returning to the market for
such durable items
as
automobiles
Product
-
*
it
will
quarterly
only
A further stimulus to the econ¬
omy
It is by
far the most useful economic doc-
nents connected with the business
sumer
Economic Advisors. A
year's subscription is $2.
of these
dynamic forces that have
made, America what it is today
provide the underlying assurance
It's called "Economic
Indicators" and is prepared by the
labor
rent level of
areas
would
force then and the produc¬ strike-caused steel shortages cause
tivity improvement we can ex- reinventorying by manufacturers,
our -pect, ouf nation would have a but automobile inventories should
capability of producing $570 bil¬ be built up as well as inventories
one lion, almost 40% above the cur¬ of machinery "and other compo¬
t ®. /!
because ot certain
basic forces at work- li 1S> lf y°u
+
force
third
A
'
H*® short" terM'^roblen? The Ion?
Hj
f+
where we does not attempt to say
will be specifically at
to
of
which have
enabled this free enterprise capi¬
talism
to
develop
the
highest
standard of living in the world.
xoncepts rof
forecasts. One can be called
th
It
growth.
government.
.
Product, ,thq> proSSJpnSh Vht ppILS
?ij? J
economist
con-
can
in
our
Types of Forecasts
Uging
t&se
how
path into the future.
our
mental part
8*
Na-
ftUIcan be denved by tokto/fhe
bF/rrivedPhvd taking the
it
people
m
c
that
you,
for
^
t0 T"
P, changes in these relas.m®" bu) ve^ v°iatl1? are??
'
far-reaching impact
?"in°ur overa11 economlc wellV
h
of
provides the major incentive
,
short-fprm
lor
consumption
National
*£££
"
i g ^
production of Gross
Product
forecasting
thi
i
u
?aSeLHiimn f"d equipment and
?'!?
business inven¬
i.
^ ln ^°"owing the
. ■
are
all
to
and
eco-
short, it's one of
our best forecasting devices.
For
forecasting long-term trends, emphasis is usually placed on the
National
y T1Y
J
k
of goods and
mould
ju
consumers purchasrs of durables
appliances
g ?
Van"
a£p"sc al/° °"ur ln business pur-
In
factors in the
®
j
watch the forces
at work that will
we can get
°2Z
;
output per
other forces,
important is the economic
environment of the United States,
a system of free
enterprise capi¬
talism that is unique in the world
"produc¬
give it to peo¬
in this fashion
two-thirds
to
ness
in
of
dant natural resources,
Secondly,
a source
gratification. It
I
word
the
consumption side you
really do only four things
the nation's output.
In the
product
of some
means
It is dressed up by the
the
about
temperatures >e
materials they
raw
the year?
of who consumes what amount of
long-
Most
first place, you can
this
though
and,
there
But
well
tivity."
worrying
also
the
course,
a
National
Gross
dollars
and
hour.
abilities and efficiency,
work with.
it is ab-
when
of
Product involves people, hours of
services they can produce in an
hour. This output of goods and
services in large part is a function
of the capital equipment at the
workers'
disposal, the workers'
own
mentioned,
forecast
shape
stated that
America has become a nation of
economic hypochondriacs, taking
the country's
temperature every
recently
have
I
term
likely to be
we
are
of
of 1957
in 1955, and that
appliances.
recent .trip to Detroit, I find the
automobile industry relatively op¬
a
position relative to our trend
becomes
relatively fruitless be¬
cause
of the many variables at
The Long-Term Trend
guess" that the remainder of 1956 and first part
Someone
Realizing, full .well .what these
atteni£t't6 forecast' long-term forces are not some¬
timistic about next year, and do¬
thing in the future but something
that is affecting our day-to-day mestic sales are expected to be
about 10% higher than in 1956.
operations, let us now turn to
work.
I should now like to dis¬ the short-term business outlook. The stimulus of dramatic restyling
cuss these two types
of forecasts More specifically, how did we get and the repayment of automobile
and give you my own views on to Where we are
credit previously incurred are ex¬
now, and where
six months
what they seem to be.
|
,
our
By following the relatively small but very volatile areas, and
the long-term forces, Analyst Mennis submits as his "best
f
and
The Short-Term Problem
future.
Thursday, November 29,1956.
...
''
t
figures,
*
'
but
t
changes * in
its
changes
other
in
give
Gross
*
you
not
National
also
,
components
economic
the
*
and
data
Volume
Number 5590
184
that' foreshadow'
Product
.
The^Commercial and Financial Chronicle
.
National
Gross
data.
.
(2295)
Mrs. Charles Ulrick Bay First Woman to
1
O
Our
output,-the
many
changes reported in the
daily paper will gain perspective.
I hope that my remarks and the
tools I have suggested will be of
some
help to enable you to be
better informed economically both
businessmen and
as
'
J
*
'
•
■
citizens.
as
•
.
and finance,
Committee of
Street's
week
Brown Bros. Harriman
first
the
For
200
Board
.
in
"
.
.
Hoch,
formerly
York
E
an
manager
in the New
office of Brown Brothers*
York
Harriman
New
Stock
hange
x c
ties
Ulrick Bay,
Co., 59 Wall Street,
City, private bankers;
advisors
Bay),
widow
brokers, has been appointed
in the foreign investment
interest
the
of
bus
Connecticut.
Embassy
former United
band
States Ambassador
erable interest
-
4)
Reports
nounced.
-The
appointment
also
was
Mr. Hoch
of
John
is
the
|
,
the postponement of another increase
In spite of these reports, some money market
specialists believe that the domestic trend of economic conditions
will
the
the main
be
in
To
joined
since
and
then
investment
He
will
in
been
has
the
fice at
City,
in¬
the
of
department January 1;
succeeding Edwin K. Merrill, who
resigning to take'
fices
*■'
Y
,v - -
-.'J • Y
in
that I
•:
.
Street, New York
maintains 20 other
correspondent ofUnited
Norwegian-born children, ranging
7 to 12 years in age, whom
she
and
her
husband
adopted
States
and
Mrs/Bay and her family reside
Street
head
woman to
firm,"
brokerage
jn the" new
the
search
5:30
School
Social
for
Financial
Chronicle," and Leo Barnes, Chief
Economist and Financial Editor of
Nesbitt
and
Shields
have
formed
Shields
with
offices
J.
—
minister,
the
honor
635
^
Mrlnuf
ner
Opens
Harold S.
Sanford is engaging in a securities
business from offices at 169 Pros*:
pect Avenue. He was. formerly
with Kaiser &. Co. in San Fran-
at
*:
Boettcher Adds
-■
to
Staff Y
fSpecial toTiiE PxNANCJAL Chronicle)
DENVER,
Colo
—.
:
in
.
*
MIAMI,
have
■
:
W;
Ralph* H:; Whitmore
Florida, 3839
Co¬
Company Inc.
Biscayne Boul7
evard.
his
...
«
/'■•
In
-
husband
duties.
shares.
.
In
she
;
being bought with the proceeds from the s^le of
stocks.
On
the other
hand, short-term Governments,
selected intermediate-term Treasuries, are
of those that have been
taking profits and losses in
offerings of
though the
an
to
year
be
unusual development at this
that the demand
large, and between
there will be
Taxes
are
a
now
still very
high and
capital will
after the
and
turn
of
of
the
corporate
though interest rates
even
continue to advance, the cost of borrowing by those that have
ment pays more
than 50% of the
expense of
a
the Govern-
*
meeting these fixed
are not in such a
tion because the Government is not
-
time of the
for
pick-up in the flotations
charges. States.and municipalities
~
Large
to pay taxes will not be increased very much since
iv/r^n^
common
corporate issues have slowed down
However, it is expected
securities.
may
as
being bought by
*•
continue
new
*
i
~
<
favorable posi-
partner to such borrowings,
arfd'a higher level of interest rates might tend to slow d awn .some-
C^J^NSBORO, N- CY
what tax-exempt offerings. The lack of breadth and the uncertain
,
,
■•/position.'Of-the market for most fixed income issues might bean/
j
that;offerings of new securities, will be slowing 'down
j
1
in the future.
r
<
,
'
— 1
*
" ' Y" /
Y I
5
"
'
I
?
,
.
.
,
.
.
~
.
'
:
.H^tiesi-ip_ both.the JN^unieir
pal and Corporate fields.
was,-
•
o c
k h
in
1 d
o
Connecticut Railway
Company,.
the
as
yeaf.
/"
■
became-ill
1955.
addition, Mrs. Bay is
rectoV and st
which
instances
somewhat, this is not
-
J0ins McDaniel Lewis
1
being taken by net a few portfolio managers.
yet that Government bonds are being substi¬
Demand for Capital Still
City.
*
-
invest-
an
stocks.
with head-
r*
BenHi,-C^f,0.1u °f W^'matcly
<me-third of the outstanding common
Fla..—• Seymour
Securities
H
*
i
'■ "■/
»
;
...
...
-
-
a
of
A
T,
.
BRADENTON, Fla.
owns
.
Conn.l;,
(a)-one
of
_>
....
ted
with
Twelfth
Goodbody-'&
Street, West;
largest individually held & Co.
,TAMPA," Fla..
—
Co.,
;
419
/
Jeanne
E.
Truitt.has been added to the. staff
of
Louis
C. .McClure
*
&Co.,
617
Madison Street.
Joins Pan American
„
Y Special to The Financial
.-
MIAMI/ Fla.
—
Chronici H)
Estelle Alex¬
staff cf Pah
ander has joined the
•
has ^recently, been witn H. Hentz
(Special to The Financial Chronicle)
Copelgnd
C. Carter, Jr. has become connecr
•.
561 North¬
Streeit./Miss Alexander
previously with Francis I. (lu
"and.Lighting |dvestment business in Miami. He (American Securities,
east 79th.
(Bridgeport,
turn
e r
Buildtng to engage in a securities
/
Y
business. Joseph A. Ray vis is a
Di- principal of the firm. Mr. Rayyis
the |n the past
conducted his own
Louis McCliire Add$Y /
;
(Special to The Financial Chronicle)
•
PI'A ;SHare,;
,
With-Goodbody & -Co.
• -
pnare
Exchange.-
become .affiliated .with
lumbia
of
-
arid
some
common
Rey-
Export Lines and on Oct. 17 of
*5ond
this year she was named- ChairMIAMI,.Fla..—\.Plymoirth Bond
the Executive-Committee & - Share " Corporation ; has' - beeri
Of the line-. At present she repre- formea with offices in the Ainsley
.(Special tcf The Financial Chronicle) ""
Nesse
Products Co.,
quarters ,n New York
elected.^ Dkectbr of the American
been - added to the
Staff of Boettcher and Company,
828 Seventeenth Street,- members
_
j
conservative
more
important way for equities, because the tax-exempts
corporate obligations have more attraction for thos* that are
making exchanges into senior securities. Preferred stocks are in
joining Reynolds & Co.,
Kelly was Eastern Regional
M/nager for BullDog Elec-
trical
s
1954, Mrs. Bay took over niany
of
Robert. L.
Two With Columbia
Wheh her
-
„
Doerin g. has
of the New- York Stock
g
that
and
prjor to
Mr
are
mean
indicate
-
.
-
in
to
seems
ment positions
tuted
some
*eL Lewi£ &; Co:, Jefferson jBuildluncheons and conferences with
has-annouhced. the association
him-r-and the Bay business deei-them of • Edwar<| ,R.-Lovvry,
sions were
often the result of former Representative of
R^S.
their discussions and joint judg-1 Dickson.vCompaAY
mcnt.
"
' *
T
boro. % Mr. Lowry will:, handle
West
stocks
This does not
Kelly has become asso-
.
Sprague
15
common
well
-
Defensive
on
equity market is being watched very closely
by money market specialists, since the defensive trend of prices of
dated with them as a registered
representative in their Philadelcard
^ of£ice> 1526 chestnut Street.
financiers, gave her many oppor(unities to participate in business
ventures. Mr. Bay always shared
His thinking with: her.. She atiended many business meetings,
Sidney Is engaging' in a securities
offices
Equity Market
The action of the
.
_
•
Palisade Ayeritie. 1
t
leadin§ exchanges, announce that
j; Thomas
dressings most successful
field, became
of New York
one
.-ti
business' from
f
Even
Lw
surgical
CISCO.
—
~
with, which will tend to take a good deal of the inflationary pres- ~
away from prices.
The confused international situation has J
brought about higher prices for certain commodities, but it is be- '
lieved by this group that unless ithere is a worsening of world rela;
tions, these: price increases will not carry (oo much further. If the •
price-wage spiral at home should be at a peak or close to it, some :
of the pressure might be taken off the money market.
sure
nolds & Co., members of the New
gtock' Exchange and other
thriving
greeting
Mrs. Bay has been unusually active in many business
fields
Her marriage to Mr. Bay,
—
ENGLEWOOD, N. J.
Ih ad-
Pprfpflt
i'nyn
Perfect), man-
a
Y'
On the other
others who hold to the opinion that the discount
are
york
in
topic of
a
*
Mr. Neal is
Y
PHILADELPHIA, Pa.
i
u
younger
hi? sister, ^Tirrah
her
(Tirzah
a secu¬
Spragiie Sidney Opens
and
lively
as
*
With Reynolds & Co.
considerable back-
a
business,
:
Secretary
of the discount rate is
ever
In addition, Mr. Con-
Warren.
|s
as
1957, if then. The latput forth the argument that the business picture, while still
/
F
rrorn
aged
WOODSIDE, Calif.
they
Future Discount Rate Continues
on
course
5 strong, will continue to have .considerable competition to contend
stock
(Chairman and
are Richard M.
Treasurer.
erFrom°lLrToeun«ePrerdayCse'in
days
business.
H. S. Sanford
q
as
position
new
,&
at
voting
Neal, Jr., D./Arnold
skelly, Myron D. Stein and James
M.
Nesbitt
Street, N. W. to engage in
rities
happy
haned
dar
Steph¬
Thelma
of
J.
Harry
his business partner
in varied enterprises."
Mrs
Bay - a tall, charming,
Nesbitt & Shields Opens
WASHINGTON, D. C.
most
years
•
ter
organization at Kid-
holders
am
the
Prentice-Hall, Inc.
en
hand, there
opportunity have come to me.
officers
but
not
stockholders
grateful, too, for the way the are jane Foster, Edmund D. Read
financial com'munity has accepted and R0Sswell J.
Yunker, Assistant
me," she said. "In assuming these Secretaries, and Howard D. Ginpositions I will have an opportu- der> Frederick H. Howell and Raynity to carry on the ideals of my mond
o'Mara,
Assistant Treashusband—and to put to work the urers.
knowledge I have acquired over
Investments, directed by A. Wil¬
fred
May, Executive Editor of
>
will be pushed up again before the end of the year.
on
and
I
guest lecturer in the course, Your
and
some other woman
first
judge, and
still
as
am
,
in the money market, with some of those in
the financial district still of the opinion that the Central Bank rat.e
dition to Mrs. Bay
,]jn
"I
Re¬
new money
rate will not be increased until sometime in
officers and directors.
are
etc.
Thursday, November 29 at
Mr. Ekman appears as
Commercial
Twenty
City,
York
others the first engineer,
p.m.
"The
the
are
conversation
games, Dudley J. Byers, Frank
Wv conlin, Albert C. Hugo, Milton
E.
Lawrence,
John
J. Morley,
just
Short-Terms
raising operations of the Treas¬
still factors in the money market in spite of the other
Debate
-
president)5
was
ques¬
year-end tax problems at
New
the
at
New
—
pen,
Sheldon V. Ekman, Chief Of the
Tax Department, S. D. Leidesdorf
on
in
aR
der>
"
particularly in the last
years—in our great country
it was inevitable this would hap-
\
tions
held
Avenue here.
Park
"With women's tremendous progress
refunding and
TTbe future
they were in that country.
They are all now U. S. citizens.
few
specific
is the mother of three
while
the first
Club
One
At New School
answer
close friend
a
,
from
proud, but most humble,
am
conference
year-End Tax Problems
will
an
the
Mrs. Bay
16
the
Wall
a
Ekman to Discuss
Co.
garnered
She became
lations.
Mrs.* Bay's of
Mrs. Bay told newsmen at a press
&
days
organization and the
Plan—she
far as the future course of the
things which are going on, such a« tax operations and, in a not too
large way, the purchases by public funds of selected long-term
Government obligations. The interest in Treasury issues continues
to be principally in the''short-term securities because the other
segments of the Government market are still feeling the pressure
of bank selling to get funds for loans and the competition of cor¬
porate and tax-exempt bonds offerings. There is evidence that the
latter obligations in some cases are selling at prices which now
give them greater appeal than the corporate issues as far as certain investors are concerned. The ample supply of the tax shel¬
tered bonds, is pushing the yields of these issues up to levels that
are beginning to attract money which had been invested in other
securities, including common stocks.
' *
two
Wall
1
and
"I am.
post with the Children's Aid Soci¬
ety.
the
ury
intimate knowledge of foreign re-
-
Canada.
executive
an
possible
the
Kidder
offices
vestment
is
year
-
In addition to its main of-
name.
department.
head
become
Brown
& Co. in 1948,
advisory
make
election to
1955.
Hanson
92
of
in
husband
as
Interest Centered in Treasury"iThe
Dwight D. Eisenhowers
positions, the when the General headed NATO
Kidder company has dissolved its —and frequently visited the Empartnership and is continuing bassy—and she and Mrs. Eisenbusiness, after Dec. 1, as a mem- hower call each other by their
ber corporation under the same first names.
was
foreign investment department in
Mr.
her
Marshall
the
appointed assistant manager in the
Brothers Harrihian
beside
0f the NATO
old A. M. Kidder & Co.
and
1947
of
ruling force
Central Bank rate, is concerned.
the U. S. Ambassador to
President
Mrs. C. Ulrick Bay
announced.
Co.
duties
was
;
tion could be respbnsible for
war-stricken, gallant country, Mrs. Bay won many friends
for
the
United
States
by
her
charm and graciousness. Working
Chairman and
joined Brown Brothers
&
Harriman
March,
Dec. 1
assuming
way, on
C.
Hanson,
Jr.,
formerly
account
manager in the investment advis¬
ory department, as assistant man¬
ager
in the investment depart¬
ment
Nor-
to
to indicate that the uncertain Middle East situa-
seem
in the discount rate.
Southern
during
Norway
The tight money
and breadth.
policy has created
and stock markets, since the availability of money and credit has about reached the point where higher rates will not increase this slipply to any appreciable extent.
that
department of the bank, it is an¬
in
Treasury obligations is still at a very low ebb. Ex- being made for tax purposes and it is expected this Y
case for the balance of the year.
The neairmarket for Government issues is an active one, with consid- •
great uncertainty in both the bond
1946 to 1953 when her hus-
years
manager
are
term
Y
«
r
that the
means
will continue to be the
hostess of the American
the
As
in
line
This
in
changes
and (b) important land and power
properties now leased on a longterm
basis
to
the
Connecticut
Light and Power Company. The
Connecticut Railway and Lighting
Company also operates a large inter-urban
their all-time lows due to bank selling and
or near
fear of another increase in the discount rate.
blocks of stock in the New York,
(Josephine
Perfect
securi¬
and
firm.
Mrs. Charles
&
York
investment
New
member
assistant
the
im-
an
portant
'
W.
of
of
Price's of Government securities continue to be very much on
■
the defensive at
this New Haven & Hartford Railroad
woman
a
Appoints Hoch, Hanson
Frank
Wall
Chairman
President
and
r
Export Lines and Director of Con¬
Railway and Lighting Company.
time
-
Governments
on
By JOHN T, CHIPPENDALE, JR.
American
years
becomes
duties
assumes
4
No novice in world of busi¬
Dec. 1.
on
Norway
Mrs. Bay is Chairman of the Executive
necticut
'
■
& Co.
at A. M. Kidder
ness
'
/
•
Widow of former U. S. Ambassador to
-
* *
*
.
Reporter
framework
economy.
Within the
of the nation's total
\
.
"My invitation "to you then is to
join the temperature-takers of the"
10
was
Pont & Co.
r
!
'
..
"
*-
With
•
_
•
.
'
•
Security Planning1
(Special to The Financial Chronicle)
WEST
*
.
•
PALM
''
.
v
.
;
BEACH, Fla.
Celiz E. Adams has become affili¬
ated with
Security Planning, Iiic.r
Harvey Building.
20
The Commercial and Financial Chronicle
(2296)
$154 Million Memphis Electric Revenue Bonds
NASD District No. 8
Public
Utility Securities
Elects Four
By OWEN ELY
has
Gas Service Company was for¬
merly
Company
135
latter
in
the
Parade
A nationwide
450 members,
stock
the
sponsored by the Home
Builder's Association of Greater
entire
(1,500,000 shares)
the retail price to the public being
The sale was made to com¬
52%
about
$61
million.
good,
nues
of
The
with
Growth
gain in
135% since
about
a
is strictly
company
in
of
summer
has
and
The
principal
spect
other important cities in¬
Wichita, Hutchinson
and
Topeka, Kansas; St. Joseph and
.loplin,'Missouri; and Bartlesville,
connected
diversified
The
sells
of
amount
of
electric
customers
and
re¬
tries
iron
are
fabricated
and
metal
steel,
glass,
products, oil
etc.
'
•
The
'■
.
"
■
5,861 tons of
with'
much
as
be
with
about
funded
next
$6.4
for
company's
Service) has been
and
others.
The
Service
(including
matically renewed
periods thereafter.
The
js, Cities Service Gas'
Vears
•"fEarns.
*19? 6
*$2.00
$1 36
27-23
1955
1.85
1.36
28-93
1.24
Price Range
The
1.41
l.bO
National
lished
1951
1.84
1950
1.99
the
1949
2.07
1948
1.86
1947
1.48
world's
reryes are
largest fields and
in this
re-
area.
In the immediate postwar years
the
company,
was" slow
cooking
.sales
market.
An
aggressive
and
advertising campaign,
together with refinements in gas
appliances, has now improved its
competitive position in this field.
The
has
practically no
competition for the space heating
and water heating load, its rate
for domestic gas in Kansas City
being far below the cost of oil or
coal;
comparative
annual
fuel
company
costs
last
year
for
an
average
home in Kansas City, Mo. were as
follows: gas $107, coal $168, and
oil $179. The rate for interruptible
rervice to large industrial custom¬
ers
is
In
the
recent
sold
listing of
on
the
to
1.500,000 shares
public
in
1954)
period.
SPrior
Cities
of
to
1954,
Service
the
12
in
amount
the
were
which
in
increase
$1.83
vs.
'A
1955;
weather
calendar
paid
to
owned
all
for
'i d
favorable
October'
and
year
break
earnings
*
,y
v
•
is
considered
able for stockholders.
favor¬
"
.
'
At the recent over-counter
price
231/2,
estimated at
be
a
industry
under
averages around
5.1
*
i
e
offers
so
much
to
industry.
CHICAGO,
Bristol
is
There
was
of
E.
Walker
issues
3,645
that
were
listed on a registered securities
exchange in the United States 01*
Canada, out of which
were
quoted
counter
in
some
the
market
as
2,250
over-the-
well*
Company,
Write for
Street,
Stock
FREE
—
209
South
of
the
SAN
.
now
Inc.,
300
Hope Adds
SAN
City 10,
DIEGO, Calif.—William
Lipps is
Hope &
Utah
now
id
,
"
.
B.
affiliated with E. S.
Co., Inc., 415 Laurel St.
the
population of this
between
and these funds have
steadily from 1930 to
1930, no bonds
have been issued to provide funds
increased
the
the
25
past
have
in
the
been
past
established
10
years
alone.
expansion, over-all, has been
rate far more rapid than for
a
of comparable size.
areas
TVA
But
contract
will
the
for
cease
on
power
June
city and TVA
will ..make
to tap
one
1,
will
continue to cooperate through
an
agreement,
it
which
possible
either
the other's
for
resources
in
of need. In
case
fact, it is pointed
out,
the Memphis power plant
may „at times relieve the burden
of
TVA,
which
is
serving
154
operations, for relief
current
for
or
other
temporary purposes.
Refunding has been confined to
principal
W.
and
Aregger,
Donald
connected
H.
with
Grant
F.
McRae
$838,006
and'1936, all
maturing before 1943 for refund¬
ing
While
the
issue
bond
H.
L.
Jamieson
name
dent department of
and meets its
the civil gov¬
its own funds
obligations, in¬
handles
ernment,
own
cluding
the
bonded debt. Any
large
expenditures it plans to
make, must, however, be approved
by the city government.
,
Though
makes
Division
Electric
the
payment in lieu of taxes to
the City of Memphis so that the
municipality is not deprived of
tax income it would receive if the
utility
service
-convinced
are
build
this
favorably
that
plant,
a
the
city
operate
privately
were
on
owned,
the division's indebted¬
takes
precedence
over
such
it
cost comparing
future cost of TVA energy.
It has been determined that the
operating
of
the
city's
Electric Division, without increas¬
ing rates, will be sufficient for
revenues
as
for interest
expenses,
for
series
bonds
revenue
the
small
general obligation
bonds and
ter-divisional
notes,
retirement
these
of
1956,
amount
on
(Special to The Financial Chronicle)
operating
revenues
will
provide funds for necessary
and
ANGELES,- Calif.—Ada M.
with King Merritt
& Co.,
Inc., 1151 South Broadway.
She
was
formerly with H. L.
Jamieson & Co., Inc.
as
and for the
obligations.
replacements
LOS
R. Page is now
W. cbl Dotto Opens V
of
in¬
The
renewals,
With King Merritt
>
the' present
with
and
also
Co., Inc., Russ Building.
the
for
plant is being offered in the
of the City of Memphis, the
Electric Division, as an indepen-r
new
payments in lieu of taxes.
well
now
and
improvement
street
assessment bonds.
ness
the
Cotton
are
im¬
FITZWILLIAM DEPOT, N. H.—
Dotto is engaging in a
Walter del
securities
ter
del
from
offices
name
of Wal¬
business
here under the firm
&
Dotto
Co.
He
was
for¬
merly with Gave-Wiley & Co.
provements to the plant and other
With Merrill Lynch
Edwin Berl Adds
.
(Special to The Financial Chronicle)
•
SAN
FRANCISCO, Calif.—Leo
A. Costello has
staff
333
of
Edwin
been added to the
D.
Berl
Montgomery Street.
&
Sons,
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—Mar¬
tin S. Chase is with Merrill
facilities,
and
for
ments
lieu
Lynch,
a
of
amount
issued between 1931
.
in
cent
per
present. Since
for
80
and that nearly 500 new in¬
fund
reserves
deducted*
only $48,876,263 on Janu¬
payment,
new
industrial
increased
being incieasingly
ary
1, -1956. Memphis maintains
sinking funds to guarantee debt
meet
has
and new outlets for elec¬
totaled
area,
operating
Jamieson Adds Three
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Salt Lake
ing
of
swiftly-growing
Memphis
including Shelby County, to
increasing demands for lowcost
power
by citizens and ex¬
panding industries. A report on
the project's feasibility, prepared
by Burns and Roe, of New York,
re¬
phis has shown an increase of only
$26 million during the last quarter
of a century. Net bonded debt of
the city, the gross with the sink-*
develop¬
The project will enable
area.
very
SAN FRANCISCO, Calif.—Dav¬
Dept. K
a
in
The gross bonded debt of Mem¬
-
plant
Ensley
shore
Lake, adjoining
and
and finance it at
Salle
Midwest
COPY
E. S.
the
on
south
indus¬
utilized.
the
can
connected with
California
Co.',
Montgomery Street.
Exchange.
Box 899,
McKeliar
•
Republic
La
the
on
new
the
but existing customers,
tric energy are
capability
The
en
residents.
other communities. Memphis offi¬
FRANCISCO, Calif.—John
T. Wallace is
B.
be constructed
Plantation
90
the
•
area
many
into
moved
new
cials
First
Donald
Central
members
Mr.
Walker added.
net
kilowatts.
interchange
a
Joins First California
111.
with
812,500
are
influx of
only have
power
units
1958.
and
'Special to The Financial Chronicle)
,v
opportunity
"turbo-generator
ment
that
have been using larger amounts of
at
or
aggregate
with
L.
taxes,
with
harbor
from 306,482.
grew
is not dependent alone
cent years,
purchases its
without
indirect
Memphis'
r.
Not
and
electric
will
cus¬
from
officials,
mere
tries
steam-
of
M
the
Valley Authority
now
built
an
Division
Electric
of
increased
an
power
level
rate
same
energy)
or
be
most
the
compa-!
s,
total
12.
Central Republic Adds
fund
been set aside amount¬
Memphis
has been
three
at
*
(Special to The Financial Chronicle)
serve
To
The
d.
invest¬
higher prices.
and
Bureau/,
19,298
12.7, respectively.
we
(from which it
direct
years
•
than
more
the
program
at the
electrical
there
explains why the
area
of the
t
protect
the Tennessee
as
dustries
n
With
little
*.
reserve
estimated 554,312, or an in¬
crease of 81%. It thus is clear, say
to
Mayor J Edmund
Memphis as an "out¬
power
area
Walker said.
$1.36, the
earnings
$2 the price-earnings
would
bond
Shelby County
by
shows that
er
securities
These figures compare with recent
e n
represent
paying
yields 5.8%.
t
These issues
,
settled last May; Gas Serv¬
ice's rates were then raised. This
ratio
AREA RESOURCES BOOK
o u n
were
adjustment
over-
the
over
"V
traded
are
annou n c e
on
would
r>
lic
National Quo¬
saire
November
$27,210,438.
a
1956
healthy growth in the demand ?or
of
tation
30, 1956,
the
quo¬
market, Louis
Walker, Pres-
Cities Service Gas filed rate in¬
creases
some
time
ago,
which
around
by the
the
the-c
entire
"
months ended Sept.
estimate.
Summary,
pub¬
National Quotation
securities
stock.
earned
was
period
$2
for
dividends
Company,
common
JFor the
$2.25
(the
'
stock
official
in
tEased
substantially below the cost
of competitive fuels.
183
that
with others,
developing the
issue of the
1956
Stock
Bureau, Incorporated, carried
tations on 20,-
•Estimated
along
about
October,
1953
tomer, and the supplier is said to
have adequate reserves. Some of
are:
C.
1952
cus¬
They
Nat'l Sleek Saanmary
Lists 20,183 Sees.
25-22%
^Dividends
1«*M
company
largest
;
-
avail¬
$17,550,831;
—
49,456 at
the end of 1930 to 163,318 at the
end of 1955, or 230%. During the
same
period,.-the population of
standing example of public power
without
public
subsidy."
The
project, when it is complete, will
permit Memphis to produce pub¬
of
1
five-year
Dealers.
by Cities
Approx.
be-auto¬
can
for
Howe
M.
Miller, vice president,
A. C. Allyn & Co., Inc., Chicago;
Warren D. Chiles,president. ChilesSchutz C.o., Omaha, Neb.; T. Gor¬
don Kelly, vice president, Collett
& Co., Inc., Indianapolis, Ind.; and
James M. Howe, partner, Farwell,
Chapman & Co., Chicago.
years
follows:
as
Securities
Sanford
stock
seven
controlled
was
con¬
tinues until 1972 and
James
consin) of the National Association
of
con¬
common
handle
Cities
Kelly
Iowa, Michigan, Nebraska and Wis¬
35%.
it
tomers
'7
Orgill
Gordon
coverage
to
described '
struction, making the ratios 65%-
when
service
The. far flung
;
as
,
The
income
operating
revenue
1960
—
1956
number
Equitable Securities Corp.
adequate
along
year
million
By
These, say Memphis of¬
will provide an over-all
ment.*
stock
common
record
with
debt
gas.,
about 60% funded
40%
may
continues to buy
of its gas from Cities
Eastern
natural
1965
and
revenues.
ficials,
recently the com¬
has borrowed
$4 million
the
banks, which amount
from
Gas
contract
that
More
Company, with the
remaining 3% obtained from Pan¬
[service
re¬
is anticipated
was
and
pany
company
about 97%
It
T.
Aug. 31
equity.
re¬
fining, chemicals, paper, .railroad
.shops, pottery, cement, rubber,
now has
company
some
will have
of
able for debt service will be:
tax-exempt bonds will be
repaid within 35 years from the
municipality's
Electric
Division
electricity at prevailing elec¬
debt
lated products also are heavy con.♦umers.
Other important indus¬
the net
expenses,
The
The company's capital structure
on
miscellaneous
deduction
—$6,874,740;
and the
of
estab¬
tric rates.
genera¬
foods
industrial
only about 40%
with
Industrial
power.
making
costs
a
to
gas
utility companies for the
tion
and
conditioning
industrial
company
re¬
within the next two years. Based
on its present rate,
structure,, air-
agricultural,
but
since
World War II it has acquired sub¬
of
the
and
t
satisfactory residential air-con-t
ditioning unit will be available
Fifteen years ago the area was
addition
of
$38,739,114;
—
.
a
largely
15
1960
$65,128,564. After the
—
ing to $11,013,793. (The bond re¬
city is obliged to build in order to serve is a fund, set up out of
meet the expanding energy needs
earnings, sufficient to cover the
of its area. Associate managers of
•highest interest and principal re¬
the underwriting syndicate Will
payment
required /in any
one
include Smith, Barney & Co., Halyear.)
;
,/ 4*.
sey, Stuart & Co., Inc.,. Blyth &
It is pointed out that the total
Co., Inc., J. C. Bradford & Co.,
architects
particularly with
air-conditioning
frigeration.
Oklahoma.
and
and
the
lishments; the
clude
business.
to
commercial
area;
stantial
assist builders
I
be offered
finance the huge power plant the
air-conditioning load, the
successful,
market
is in the Kansas City metropolitan
considerable
gas
in
designing and installing gas
equipment. The program has been
serving 239 communities in
Missouri, Kansas, Oklahoma and
er,
Nebraska.
other
one
has employed air-condi¬
tioning engineers to consult with
retail¬
a
Dec.
1965
and
ceeds of the issue will be used to
least
company
1946.
$23,460,237;
some
$154,000,000
Memphis, Tenn., electric revenue
bonds, representing
the largest
single piece of financing ever un¬
dertaken by a municipality. Pro¬
heaters;
To aid in the development oL a
reve¬
syndicate of
headed by Salomon
&
about
or
the
with gas
scheduled to
is
by nationwide syndicate headed by Salomon
Hutzler, New York City,
plans to make public offering on
70 homes, or
total, were equipped
ranges, Servel refrigera¬
of
tors, and at
appliance.
Act.
been
water
gas
ply with the requirements of the
Public Utility Holding Company
The company was organized
1925 and has annual revenues
Bros.
City, Missouri, all were
equipped with gas furnaces and
23%.
issue
Bros. & Hutzler.
of
Kansas
sold
company
common
15
Indiana,
Homes,
a
single municipal
about Dec.
District
to
Committee No. 8 (Illinois,
houses
subsidiary of Cities Serv¬
ice Company, but in April 1954 the
members
new
Largest
of the election of
made
been
four
Gas Service
Expected to Be Marketed Shortly
CHICAGO, 111.—Announcement
,
Thursday, November 29,1956
..
.
to
appropriate
reasonable
the City
reserves,
annual
pay¬
of Memphis in
of taxes.
years,
gomery Street.
vals,
are
expected to be: 1956
REDWOOD
CITY,
Calif.
—
George W. Metlar has opened of¬
Operating revenues for three
chosen at five-year inter¬
Pierce, Fenner & Beane, 301 Mont¬
>
G. W. Metlar Opens
—
fices to engage
ness.
He
was
nolds & Co.
in
a
securities busi¬
formerly with Rey¬
7
Volume
184
Number
5590
.
.
The Commercial and Financial Chronicle
.
"t
(2297)
my
Impact of Suez-Oil Crisis
opinion,
most serious
a
mis-
transportation by substituting the
take.
short haul
,
Consequences of Attack
And
Middle East Program
a
By
GEORGE
Vice-President,
L.
Standard
Director, Arabian
Company
American
Oil
of
California
out of
tion
U. S. A.*s Middle: East*
f
position,
for U. S. A.
;
First, I would like to present
few background lacts concern-
a
ihf
the
Middle
i-ng
at
is
oniy
Europe,
.would
•great
if
reason
for
In
.small
sian
,
,
,
.
,
,
least half and probably two-thirds
SL^eoW°v dt k?Tn Petro
of
Kuwait,
has
known
oil
*fe+ruvesTTa^,ou.t af ^reat^/ras mose
Sf-JS*1
Sua eS' Moreov.er>
the Middle East has not been in¬
tensively explored for oil and we
can
confidently predict that new
'fields of
great magnitude will be
*
-found.
*
a
^
,
Europe depends
.
..
.
on this oil to an
greater extent. It is literally
^Europe
type,
,
without
'L
restoration
of
the state.
over
'contract
a
major
Yiola-
a
or
-
concerned,- the r:g.it
is
In
to
universally
the
type
increases
breach u± bULii
wicdbu of such
effect
condoned.
tion
but
some
^cts+
tt
^ ^ Upited states
source of
day find this,
..petroleum indispensable to its do.mestic economy.
This vast
must
not
Gulf
oil
character
of
Per-
highlights the vital
of
the
through which
Suez
more
half million
Canal,
than
barrels
one
per
and
day of
Petroleum and its proaucts
nor-
many now.
,
Semantics of Nationalization
: With this
background, I would
SuhtcrfskbThPt?ritie
Suez
The trigger
crisis.
which set
course
Spharitnn
?£fS Jron "
Abdul NLser wasP [o
m!nd
:tth in IL St JL m'
,
nn
mv
moral
the
,
act.
It
have
this
is
unfortunate
immoralities
greater
have
supervened
single fact and
forget that the
world
'initiated
'
of
a pn-
company elects to make an
a foreign country
'
the
crisis
was
Egypt's tearing
,
up
a
,
SOm5
•.
wby, 1
??
refer to the nationalization of the
+na\vaS an4.1lifgaJTa
lnypof"ai
Was not the Universal Suez
act.
Canal
Company
pomtion.
Is
an
not
Egyptian
cor-
with
duration
its
of
regard
right
fr0m
answer
has
.
.
ization"
abused
cloak to
word.
cover
is
that
become
It
up
is
"nationala
used
muc.i
as
a
the ugly fact of
concerned
ProihPt,
is
entitled-
only
rjs^s
s0
great
are
the
or
considerations
large
so
com-
New
address
have
it
seems
to
me
Europe.
sure
(I
be
serious
a
don't
that
know),
since there is
We
If I
chemicals
would not
take
tjje
were en-
much
even
same
jn
though
settling
the
which
Predicts
Dollar
effect of
this
ization
*
I
for
.
crisis
unilateral
act of
eration in
the
the
Egypt.
high
cost
shipping
ment
cargoes as
which
have
gone
sky high.
Fifth,
•
France.
inter-
.
The
the
sitated
attack
was,
in
■
-
are
neces-
partly by the embargoes
imposed by certain Arab states
against the United Kingdom and
France but mostly by the sheer
physical necessity for conserving
seizure
settlement
the
tne
of
will
than it
before
in
to
Middle
tinue
to
France
Hemisphere purchases
Abdul Nasser in
That
NASD's
District
Form Freeman Sees.
Corp,
DALLAS, Texas—Freeman Se¬
Corp. has been formed
curities
with offices in the Fidelity Union
Building, to conduct
rities
business.
a
secu¬
are
Offices
John
H.
Freeman, President; John J.
Howarth, Vice-President; and Mrs.
Peggy King, Secretary-Treasurer.
Walter Unger Opens
BALTIMORE, Md.—Walter Un¬
is
ger
be
with
ac-
plans for ex-
Maryland
East,
we
must
must
Avenue.
op-
in
con-
that England,
withdraw their
general,
the
continue ,to
at
202t»
was
He
for¬
merly with A. J. Grayson Corp.
Form
Security Inv.
INDIANAPOLIS, Ind.—Security
Investment Corp. has been formed
offices
Road
to
at
engage
business.
1639-
in
Officers
Lafayette
securities
a
Charles R.
are
Hixon, President; Wilmer J. Lan¬
Vice-President,
dry,
M.
and
M.
Hixon, Secretary. Mr. Hixon and
Landry were previously with
Mr.
Eastern
Securities
Corp.
t
.
Frank Knowlton Adds
(3pecial to The Financial Chronicle)
OAKLAND,
Calif. —Vernon F.
Moore has been added to the staf f
of
Frank
Knowltbrf &
of America
Co., BanJ
Building.
"
With Financial Inv.
(Special to The Financial Chronicle)
SACRAMENTO,
Wah
Wong
vestors
with
is
Calif.
—
Bocli
Financial In¬
Incorporated, 1716 Broad¬
way.
insist that the cease-fire
and Israel
securities
a
offices
the
leadership
gain
maintained and
In
from
would
armed
in
engaging
business
Egypt
portunity
Western
weakening
Canal did not justify
Only partly explains the atlack On Egypt by Israel, Britain
to
ceeds Walter M. Sbrenson, Rotan,
Mosle & Co., Houston.
in
Abdul
reward
not
pansion of the Canal,
On
the political front,
if
United States is to seize this
he
Hemisphere (United
for dollars,
leadersnip-
achieve
tied
there is the purchase of oil in the
the
we
and it was hard
enough then.
It must, however,
be
accomplished.
Perhaps
tne
best hops is to achieve a settie-
dry
well as oil by circuitous
Third, there is a loss of
trade resulting from limited trans-
in
tion
Second, there is
of
deal that
and political
Accordingly we
his
This
to
been
have
routes..
sanctity
system.
elected
Mr. Bm«'n succeeds Rarron Mc-
Suez Canal na.iunaiin
a
way
for
harder
on
we
the
will
canaL
;
Eui'opeah economy as a whole
will,
however,
be
very
great,
First, there is the cost of the op-
•
our
partner,
Committee No. 6 (Texas).
controversy
Nasser
*
Shortage
Europe
i
The
"
J
ciu
must convince
we
commercial
our
relationships:"'
firm,
of
time
take
™
my open-
eminently fair and reasonable
are
com-
have to be increased. The Western
fiber
commercial
been
with
those with whom
should
«
real
achieve this by certain
can
companies.
1
a
ing theme, we must take a firm
stand" on sanctity of contracts. At
competition,
too
have
ce-
convinced
am
First> to come back to
of rationing or alio-
system
I
ones.
have
and
simple steps:
gen-
no
Nations
the world.
States
moral
a
opportunity
to attain moral, political and economic leadership in this part of
lhat the Suez crisis will
significant effect
a
old
we
This is already occurring and will
naf;onal
standing start
a
friendships
new
mented
the Suez crisis is the
the
by the United
or
United
the
created
troops.
of
_
two ago. has made great
and is now strongly en-
or
States and Venezuela)
and
Russia
may
have a very substantial
short-range impact on individual
ee
that
Co., Dallas, and
general
Life
greatest economic implications of
Manufacturing Chemists Association,
York City, Nov.
20, 1956.
Parkhurst
in
will
munity, particularly within the
so-called under-developed coun- portation facilities. Fourth, there
tries, will not prove feasible in is the inflation of tanker rates
Thus
Currie,
in
Nations
position is at an all-time
strides
it
world will suf.er if such
contractual r e 1 a 11 ons are not
hoaored smce some of the enterfri3fu ^hlch should be built up
for the benefit of the world com-
the absence of faith in the
T.
.
before
fort in the Suez crisis
^0r/d apon ^.hicb mucb °{th%in-
Qf internation contracts.
Union Securities
Culloch, Barron McCulloch & Co.,
Fort Worth, and Mr. Currie suc¬
How-
4
and
Mr.
on
European
pany' 0ther examples are ths vast
oil enterprises
throughout
the
■
and
petro-
J
Government and the Canal Com-
.
DALLAS,
Tex.
—
Jack
P.
Brown,
vice
president.
Dallas
its
caused France and
accept the cease fire.
Russia, from
deavoring to forecast the vigor of
the strenSth of contractual oblfgations between lhe E^Ptian
depf^nd'
having
year
shortage.
cation in operation.
been
;
immediate
on
eral
Jn Jxf
never
present cir-
impending shortage
In fact, ic is not
but
companies
as a whole must suffer
wouid
mobilization
the magnitude of this effect
will obviously depend on tne supplies of oil available to individual
amP'e of this is the Suez Canal,
which
fiow-
chemical output in Europe.
jf the worjd cannot
rely on the
keeping of agreements by nations,
before
by
shortages
serious
ever,
by mutual consent of the parties.
^Tlfe 3°
am
have
seizing the
♦An
world
tne production of chemi-
I
ahy other,
WOild
:
growth.
courageous
^
that
there
cals
a
longcontract, that contract, like
can be modified only
term
rapid
Near. East.
T^e. P^seat is a decisive mo^
bls ""T £
Midd^le
®asb England and France, which
lon^ enjoyed positions of political
an(^ commercial leadership in the
area^. have made a desperate
gamble and have clearly lost,
£^er,e.1S a vacuum. It will be
petro-
say
effect
or
desire to enter into
pany
will
states
very
States.
the
on
whether
commer-
that the government and the
Arab
recent
a'%Zg tZal
Russia's
*
Incidentally, I have been asked
important
so
its
United
^ie
England to
in; Europe.
of that
to
and •: effective
On the other hand,
jf the investments
the
its
age
adequate
compensation.
of
continue
the other
As is obvious, it is a
s£ortrenched in a few Middle East
resulting soley from ashort- countries.
The
penetration
is
age of transportation
Individual
wide
and -,d
0n
the
other
oil companies are making Hercuhai)c,
wc too nave enhanced
our
lean efrorts to mitigate tne ettects
p0sii10n jn this area. Uur actions
interfer-
''
the
Mobilization
real.
operate
government
certain
Jack
enhanced
hv
natian<-
.
filled by
an
impending
the
to
to
of oil
do
not
things, Russian influence in
Jack P. Brown
Jack T. Currie
Britain and France but it has gone
further by threatening these countries. Accordingly, Russia is giyen Moreland, Brandenberger, John¬
much credit in the Miadle East son & Currie, Galveston, have
or
this
of
of the free
prooicms,
Iheie is
and does not secure anv contrsctual assurances from the foreign
nationalization
the right of any
sovereign nation?
'
world.
cumstances.
mvestment *n
government
of
and
small
ever, sucn an all-out
is not feasible in trie
eclipsed4
made
the
so
could probably be avoidea.
^
do
we
thW
.
be
iefecu
If
in
States
Unfortunately, however, the So,v*et ^n^.?n bas also greatly enbanced its position in the Arao
World. Like the U.^S. it has op¬
P°^ed the armed action by Israel,
not feel the
government.
which,
solemn agreement without not.ce.
_
■
by
that
from
J° 1^us^ra^e the point, if
a
United
area.
to
served
greatly the posi¬
very
the
S. A. and
on
greatly
stand
fully mobilized without
regard for political, economic and
'
i
Oil
resources
could
buifexTeSJo"6 dependence^
"was ""of"
SationalSation of the un£
Suez CaSl ComPanv
This sud
events
delivery
industry it is fair to
if the
ue
solemn contractual obligation
cjaj
importance
Ail-Out
has
^
world?
clogging
As for the effect
leum
morally unjustiana
A
of
Is Feasible
ence» the company takes the risk
of nationalization. In the event of
such nationalization the company
thtrfir th*?*
the
tion of
things the Sue^
have
standing and prestige in all of the
for
This is not nationaliza¬
rather violation
of tne
free
o
of
Doubts
obligation uy
uujiigauon by a
legally unjustifi-
well as
It cannot
as
naole.
-
these
will
U. S. S. R.
The United States
artery
an
oil
is
government
of
nation
a
act
is forgiven and for-
.'Arabs Praise for U.
shut-down
continent of
noc
living in the Mid¬
nsn
gotten in the Arab countries.
^and a
the
on
remote that it will
so
a
Pales¬
Xt "fa^.the opposition to Britain and France,
commodities
every
There is
ox
into
rebuilding
Canal
costs
countless
to
obligation
and
has
eifect, given up its
in
entered
the
nf
nnt
months.
stations
effect'
is
the
Fm'nit
nnH
^ainSt Lypt
a??;?.gZP
and
effort,
operation will
meantime
Primarily,
tha
has
the
Europe
^nv vea?r before theS
cir-
hnt full
this
pumping
economic
a
na¬
"nationalization,"
Jn
.
recog-?
second
Jew
.u^L
f
of
of
this
of the pipe line
involve
probably
gen¬
Where
constitute
either
a
5Pbn£
be P6rsian
tP1 ?ierPifF)here could do
Persian Gulf oil for the
mn
-
first
the
whole
the
J.®
hand
"nationalization"
Middle
ranL0ieff^tS^flierof1Scourse°nbe
as
res-
area.,
all-out
a
do
we
these
While
presumably, be
within
the
?»« the current economic im-
to
lite blood. Large parts of
s
+v?
=
of
e.^m able
of two countries,
Saudi Arabia and the tiny sniek-
could
If
crisis
strategic
events in
resettle
or
or
na¬
help
dle East.
and
coun-
East.
'am
long
the
an
Partial- operation
right to nationalize for a limi.ed
period of time.
The
unilateral
G. L. Parkhurst
a
sian
In
not
thereby,
at
Canal
cleared
contractual
Gulf
^
the
be-
action
of
how
in
France
bystander
We must
refugees and assist in raising
the standard of
strengthen
flow
-
knows
one
half
England,
innocent
repatriate
tine
from recent
it eould
as
this, it is ob-
tion like all others.
of Oil f
nr^
thn^Pwh
v' Brown,. Currie Named
iS Seri0USly ^ ^thei; Zntriel^n neve°r SE To NASD Dist. Comm.
The
of
,
government
Fer-
.
ever
word
so-called
a
contains
tion!
kinds
area
the
-near
does
nized.
addition,
.however,
the
tionalize
no
•other.
^
two
than
more
Canal.'
.
ment
that
the
No
treaty entered into by the govern¬
for
us
little
a
result of all
that
in Europe,
one
give Israel no special favor
privilege but will treat that
tries in Europe will suffer serious
economic consequences resulting
westward
situation will prevail. Given
toration of normal political
'*•'-?
vast difference
a
applied.
Jion
impor¬
tance to
tween
this
of
*
-
There is
bound
familiar
a
a
many
are
American-owned
SgSf
contractual
obligations.
eral welfare
It
be
of solemn
government
merely
raxes
private properties for the
of
the
cumstances
abrogation
is
Asia
and Africa.
_
via
further'
prevent
of
much oil around Africa
•
-
which
the
cross-roads
?
to
are
Witn tne excep32b,00u.. barrels per day
mobilization
™P°rtance of'.;
The
area
East.
^strategically
located, stanct-
a
and
there
interests
TmkirTaT %£v
k
U. S. S. R.
rapidly-rising influence; Warns that Europe's
dependence on this area's oil will, in time; likewise be true
<
.
As
vious
operation.
■
consolidate
program to
a
French
Tapline, all* oil
-
of all, the
which
in
and
carried, by
fully mobilize
and-offers
resources,
First
become
shut down and those
is
lines
jbritish
countless commodities from and to
every world continent will
Mr. Parkhurst doubts it is feasible to
fre€ world oil
Egypt?
on
pipe
Company
increase.
.
conse-
wnich flow "from the at-
Suez Canai
mistake," in describing the crucial economic consequences to
Europe, now coming on top of what had been, heretofore, anoil shortage due to insufficient
transportation. Believes Euro-"
pean '"dollar shortage" will
re-appear,- and delivery costs of *
\
Egypt
on
economic
tack
Egypt "a most serious
on
the
are
quences
PARKHURST*
Oil
Prominent oil official terms attack
...
What
the Atlantic for
across
the long haul around Africa.
j venture
to predict that the
term "dollar shortage" will again
_
21
United
take
Carr Adds to Staff
(Special to The Financial Chronicle)
DETROIT,
Gruber
has
Mich. —Harry
been
added
to
S.
th'i
Penob¬
scot Building, members of the De¬
troit Stock Exchange.
staff of Carr & Company,
a
impartial
an d
efiective
stand in the United Nations.
We
must
demonstrate whenever
Ashton Adds
(Special to The Financial Chronicle)
DETROIT,
Mich. —Helen O.
thJ ™'e
independently of British and Burns has been added to the staff
of Ashton & Co., 15315 West McFrench policy. We must convince
Nichols Road.
ine Aiaos n*e United btatts wij
neee^fv
act
22
Financial Chronicle
The Commercial and
(2298)
Thursday, November 29,1956
...
'
underwriting profit margin for the ten years ended with
The
1955
was 3.8%;
The gain to the shareholder in that decade (the
'gain consisting of the increase in his equity plus cash dividends "
Bank and Insurance Stocks
in the
At this
period) was $67.58, or at an annual rate of $6.76.
only 6.8 years would be required to ODtain a return of the
Sept. 30, 1956, price of Springfield stock.
Investment income
increased in the same ten years by 116%.
Australia Arranges
Loans cf $27,000,000
rate
By ARTHUR B. WALLACE
This
Week
Springfield Fire & Marine Insurance Co.
calendar
Springfield Fire & Marine Insurance Company, cf Spring¬
Mass., began business in 1851 with a paid-in capital of
$100,000.
The company was the idea of Marvin Chapin, who
objected to the sending of premium money out of Springfield,
and thought that a city of that size merited an insurance com¬
pany of its own.
; ^
'•/:';/-//• •/
as
so
organization had
companies of the
many
impairment
of
in
not been
Canada
When
first
Rising
as
appeared, the
was
company
one
be
according
increased
volume
in
98%
all
in
states
the
and
ended
decade
this
Extended Coverage.!
Inland
Marine
Workmen's
v
Auto
Bodily
Auto
Property
Auto
Physical
All
A
____r__
Others
the end of
of
as
1955
Other
Obligations-'-*.
Common
Stocks___________
All
Other
Market
With close
Springfield
cash,
Adjustment
to 50%
follows
'
a
follows:
Record
._
Invest.
Gain11
Income
Taxes
Earns.
Assetst
High
$58.42
$1.64
$2.72 ~ $0.01
$4.35
$80.49
54V4
40%
55.69
0.35
2.55
83.71
45V2
37%
1948
—
1950
59.35
3.84
2.55
0.82
5.57
93.07
47
2.86
2.98
6.51
105.95
49
41
4.33
3.26
1.56
6.03
112.62
431/2
41%
1952
i953_r_;
1954
1355__.
3.09
3 42
0.51
6.00
122.82
561/2
._
3.63
2.53
5.60
129.72
54%
1.78
3.83
1.56
4.05
133.39
551/4
4.70
1.43
2.42
148.28
611/2
1945
four
were
which
in
index
of
statutory
of
4.20
—1.57
gain
or
0.03
loss
plus
2.60
equity
153.86
in
change
in
the
year
in
and
voluntary
reserves,
some sectors
these
on
plus
equity
in
most
past
payments, % the shareholders, and stock dividends have; totaled
$3,000,000. The present cash rate is $2 annually, cnlyrabout 48%
of the 1955 investment income
Dy .retention of a substantial pro¬
portion of .investment income Spripgfield has improved 'its per¬
centage of liquidating value to net premium volume. This better¬
offsetting
as
recently
in 1955."
1951 to 70%
as
year
BANK
NATIONAL
OPPORTUNITIES IN
of INDIA, LIMITED
Bankers
City
to
the
Government
in
Head
West
on
Colony and Uganda
Office:- 26 Bishopsgate,
London, E. C. 2.
End
Kenya
Bank Stocks
Bulletin
Request
(London)
Brancht
13, St. James's Square, S. W. 1.
Pakistan, Cevlon,
Branches in India,
Burma,
Laird, Bissell & Meeds
Members
New
Members
American
York
120 BBOADWAY,
Stock
Stock
NEW
fi,
N.
in
Bank
Stocka
Uganda.
■
I
Telephone: BArclaj I-H5uo
Bell Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading Dept. I
Specialists
Aden. Kenya,
Zanzibar,
land
Exchange
Exchange
YOBK
the
are
Authorized
Tanganyika,
move¬
traces
"Business
to
say
the
Re¬
that prices
and
services
and Somali-
Capital
£4,562,500
Capital
£2,851,562
Reserve
Fund__
£3,104,687
Bank
conducts
every
description of
business.
Trusteeships and Executorships
banking
•
■
and
--also
or
The question
so.
is this
trend
a
to last
"There is
^
ion
the
to
well, be
in
a
that
of
today
that
were
before, they nevertheless
fundamentally the pres¬
situation
that
is
of
little
different
periods
previous
when demand for goods and serv¬
ices has
the
outrun
able.
The
these
conditions
been
for
supply avail¬
natural
to
response
in
the
have
prices
to
rise
been
developed,
contributed
has
and
prices
and
observers
ductive
pressure
exchange
undertaken
the payments on seven
707-138 jet aircraft, on
Lockheed
Super-Constella¬
of
part
Boeing
four
tions, and on various spare parts,
accessories and oth<?r flight equip¬
and
made between
and the delivery of the last
now
be
With F. I. Du Pont
Price
on
be
Trend
large body of opin¬
a
effect
that
there
may
long-term upward trend
view look at recent
developments
only in Canada but also else¬
the
and
longer
more
-
run
the acceptance
particularly
implications
at
of
for
responsibility
hign level of
maintaining a
—
this to be/accom¬
plished
by
stimulating, when
prosperity
necessary, both
and
consumer
supporting
in
or
diate
the
by
of
the
that
sought,
and
present
aspect
•
With McDaniel Lewis
tsnpcial to The Financial
GREENSBORO,
prices
is
but,'one
of the complex subject
the interaction of supply
mand
While there is
growth.
awareness
and de¬
a
greater
of these processes
than
Lewis
&
Building.
With King Merritt
Chronicle)
JACKSONVILLE, Fla.
erick H. Johnson and
Jr.
are
now
—
Fred¬
John Potfay,
with/King Merritt &
' /*•
Co;* Ihc?, -24 Julia Street.
King Merritt Adds
1.
'
(Special to The Financial
Chronicle)
MIAMI, Fla.—Muriel R.
man
been
added
Merritt
&
Mathis
Gordon
and
Commerce
there was a generation ago, knowl¬
and
by
raising prices edge of how they work is by no
Such
policies
means
complete,
and
until
the
to
Co.,
staff
Inc.,
Land¬
have
of King
Chamber of
Building.
period to date, and have
drawing, and depending upon, any
unques¬
tionably contributed to the wide¬
for
capital
and
known
conclusions
trend
of
there
as
is
to
danger
a
the
prices from
With Columbia Sees.
more
is
(Special to The Financial
in
long-run
the tenden¬
Chronicle)
Coffroth,
MIAMI, Fla.—John K.
Jr., Frank W. Gionataiso
H.
Kalchman
lumbia
are
Securities
now
goods and for the mate¬
cies of. the
past two years."
nf
TTlnrirJn
and Sol
with Co¬
Company, Inc.
....
consumer
Mrs.
—
become con¬
(Special to The Financial
of
of economic
the forces
and
at
Chrcnlcle)
C.
N.
McDaniel
with
Co., Jefferson
The long-term
time.
of
movement
a ques¬
answered
be
cannot
formerly
was
Hammill & Co.
interme¬
found, along which extreme price
tion
He
Co., and Shearson,
&
Fewel
with
of
course
an
will-be
Hugh D.
—
now
buying,
even
demand
is
Street.
Green
points of view will
whether
path
other
the
or
1
Chronicle)
connected with
Francis I. du Pont & Co., 723 East
time
have been pursued in the postwar
spread
PASADENA, Calif.
Purcell
Page B. Gregor has
one
out
or
capital investment
instances.
some
borne
events,
of
by governments in
countries
many
in
holding to. this swings will be avoided, is
prices. ' Those
(Special to The Financial
nected
"Whether
expected to be in
1959.
period of consolida¬
these opposing
be
to
Conclusion
re¬
can
has
ensued.
has
are
aircraft which is
upward
the
prices
a
These pay¬
being imported.
eventually
has
demand,
on
meet
change raised will be used to
plants
point out that, as pro¬
capacity
in
carrying out its re-equipment and
expansion program from July 1956
to December 1959. The foreign ex¬
ment
higher
the
of
of the new financ¬
The purpose
ments
But such
between
rest
ing is to assist Qantas Airways
for
to
traffic
the
and
world.
and
rates.
wage
overtaken
tion
Qantas car¬
than one-half of the air¬
Australia
has
new
and
the
United States
Africa and
passenger
past
in
indefinitely?
Protectorate.
Paid-Up
The
influ¬
that
abated
Opinion Divided
where
BUYING
New York
Review
commodities
expected
not
GOOD
this
true
mains:
interruption in Springfield's dividend rec¬
ord since 1867, an enviable record of 89
years of payments. Since
organization the company has disbursed over $41 million in cash
93%
there
Canada have tended to rise in the
no
from
prices
the trends in recent
on
un¬
premium reserve.
tAdjustec! for capital change.
has been
to
"It is
earned
There has been
consumer
view" says:
|
equity
of
years
the
route miles, radiating
Europe and the
South
more
borne
have been built and old ones have
the
icscivc.
policyholder's
through
remained
Continuing,
55V2
671/4
freight and mail serv¬
extensive network of
an
Canada,
the
production, stimulated by higher
prices,
to increase to meet not
only existing but also anticipated
demand.
New
mineral
deposits
ment
,46%
i'lcuiiuin
ment
there
uninterrupted
from
monthly changes in the main sub¬
groups of both indices since 1954."
43%
—0.22
106.62
tConsists
prices
44
99.84
♦Consists
in
months, the accompanying supple¬
4P/2
4.5C
35.03
._
some
that
feel
from
years
throughout
work
at
ences
ent
light
83.33
._
inflation
tendency
world, others hold a contrary view.
a recur¬
ments and
79.19
1951
in
concern
has
built-in
a
steadily; in others they been modernized with new equip¬
The
declined; and in still others they ment.
very
process
of ex¬
fell and subsequently rose sharp¬ panding capacity has intensified
ly. In an attempt to throw some the need for materials and labor
40
6.6J
74.84
._
to
over
about 60,000
increased
Low
63.00
._
1949
towards
is
be¬
virtually
unchanged and the wholesale price
index actually declined. This gen¬
eral stability in the over-all in¬
dices,
however, masked
widely
divergent
trends
in
the
major
-Price Range-
—
so
observers
some
components. In
Net
—
or
there
ahead.
price
Federal
-
year
while
"But
lieve
No Built-in Inflation
See
absent
rise
respite
Invest.
2.20
past
circumstances
special
1951,
Adj. Und.
,_
the
in
Some
and
price index by 82%
of six years. But the
"After the almost
IJq.
1947__.
52%
by
ices
ries
war
Admitting
rise
Value
J1946
the
consumer
ring feature of the
Share
Per
—
rise
to
of
pressures
with
the
caused
typdrters that this ma^ be
conservative investment policy.
Statistical
associated
that
given
of the total assets committed to bonds and
Ten-Year
passenger,
South Pacific Islands.
at home.
such
—1.2
__•_
time, however,
same
capacity of the nation and
in inflationary pressures
resulted
prices have tended to climb, how¬
ever gradually, in
the absence of
*'7.5
1
subsequent
Korea
fact
3.9
Assets
the
the
the
ad¬
are
when the de¬
of wartime inflation
in the space
*33.5
__;
At
the rapid
Kingdom, Hong Kong and
year
the wholesale
7.6
Other Investments
rise.
Japan,
22.3
Stocks
Bank will also bear
United
demand
23.0
1
Bonds
Preferred
The loan with the
1964 inclusive.
International
ductive
in
as
in
semi-annually
through June
services that has strained the pro¬
a
1952,
to
up
layed effect
3.4%
U. S. Government
respectively
above
increases
These
price index
was
Cash T___
in./Canada,
last few years and
the
mature
from Australia to
and
12.8
distribution of assets
occurred
have
will
and
from December 1960
those that occurred in the postwar
4.2
2.0
10.3
Damage
that
have
greater than those
been somewhat
expansion of the Cana¬
dian
economy
has
involved
a
heavy
demand
for
goods
and
years
2.2
Injury_____
countries
industrial
other
Move
were
2.9%
and
earlier.
7.7
Compensation
"Ibis
mittedly small in comparison with
14.6
:__
*>■
the
on
report
2.5%
46.2%
___
of
"Busi¬
/ Morgan Stanley & Co. acted as
agent for the Commonwealth. The
interesting to note in this^ new serial notes will bear inter¬
connection that price increases in est at the rate of 4%%= annually
production.
two
latest
Dec.
_______
_
years
Bank
pro¬
$9,230,000.
borrowings
.
31, 1955,
A
breakdown of the 1955 writings into principal categories follows:
Fire
the
to
its November
these
from
the
postwar period as a- whole. interest at the rate of 4%% an-f
indices," the Bank In point of fact this country, as a nually and will mature semi-an¬
states,
"that
provide
a
broad major supplier of some of the key nually from June 1964 through
measure
of price
movements in industrial raw materials, and as a December 1966 inclusive. /
Canada,
namely
the
consumer major importer of capital equip¬
Qantas Empire Airways Ltd.,
price index
and
the
wholesale ment, has been directly affected which is owned by the Common¬
price index, have each risen no¬ by the world-wide tendency for wealth Government, is Australia's
ticeably in recent months and at the prices of these products to international airline. It operates
"The
Premium
Canada.
in
in
whether
to
as
of
loan
a
aggregating
$27,000,000 will be
used
by "the
Commonwealth to
provide part of the dollars for
purchasing Boeing and Lockheed
aircraft and parts for Qantas Em¬
pire Airways Ltd.
<
rials.and labor required for their
both in
Michigan Fire & Marine and New England Insurance
Two others were merged.
Practically all forms of
insurance coverage, save life, are written; and the company is
business
that they may
concern
Prices
Company.
do
are
Review."
ness
company,
to
Canada
in
Moving Up?
Development
and
for
Proceeds
arguments
entered
separate agreement with the
Bank
for
Recon¬
a
struction
long-term upward price trend.
a
recurring feature in the
ahead,
In the 1.920's Springfield started to acquire ether companies
subsidiaries, and today its fleet consists of, besides the parent
licensed
is
time,
same
has
International
insight into price movements in
attracting attention and
giving
a
Montreal
of the
although at first limiting its risks in
resulting from external causes only.
coverage,
fires
to
prices
once more
are
assessment.
the automobile
sell
to
line
into
high, the
price area.
by presenting conflicting
there
But the company had by
its prompt payments established
reputation of meeting its obligations in full, an important asset
for an insurance company, particularly in those days.
Then, in 1906 catastrophe hit again. This time it was the Tire;
following the San Francisco earthquake.. This loss was $1,670,000
for Springfield.
This time, and in spite of the size of the loss,
no
Commonwealth
the
offers good
stcck
1955
present
Bank of Montreal presents an
its
was
the
Are Canadian Prices
Chicago conflagration piled up losses totaling $450,000. The di¬
rectors promptly assessed the shareholders $65 a share on the
$100 par value stock "to repair its capital." This was a serious
blow to Springfield Fire, but with its capital brought back to
the original amount by the assessment, the company was faced
with
another
conflagration, the Boston fire, which destroyed
nearly $80 million in property values. This time the assessment
was one of $30 a share oh the stock, for a total of $95 in two years.
there
its
from
in
borrowing
At the
tional investors.
viding
experienced, there was a serious
In Springfield's case the great
era
its capital funds.
value
the
for
arranged
$17,770,000 to be evidenced by
notes placed with institu¬
serial
fairer comparison.
a
somewhat
investment
long when,
business very
years,
Down
field,
The
of
Selling at present at about 46y4, the yield is approximately
4.33%. The shares are selling at about 17% times 1955 net earn¬
ings, and about 11.2 times average earnings for the past five
Insurance Stocks
—
The Commonwealth of Australia
has
2829 Riscavne
Blvd.
Volume
184
Number 5590".
.
The Commercial and Financial Chronicle
.
(2299)
reported
Keeping
in
Even Keel
on an
By EDWIN J. SCHLESINGER
Mr.
On production
they will help keep the
to
keep the country's
economy
60-day
economy
on
even
an
most
emanating from various points of the
pressure
in
thereby maintaining the people's confidence in the
the dollar, the Administration may care to weigh the
feasibility of the following points:
and
compass,
soundess of
(1) As long
tem remains
permitted
minimum
of
the
an
to
interest
Administration.
with
rates
criticism
of
from
area.
period.
v
Inflation
7
buying
and
30-day
ported
prices
new
policy
re¬
capital
on
the
goods items.
up
—
the
over
1956
Serious
of
Automobiles,
abrasives, steel, steel scrap, tin,
vegetable oils, fuel oils, paper,
coal,
rubber,
burlap,
electric
motors, and cement.
On
the
5%
For
short
steel
supply
this
Brass,
are:
J.
Edwin
anced
Schlesinger
Sound
budget and
debt, is
the
If
(4)
national
a
debt
together with a bal- :
reduction of the national
money,
a
requisite for
can
not be
healthy economy.
substantially reduced
a
during periods of prosperity, it is difficult to see how it can ever
be
adequately reduced.
Wants
Real
structurals,
pipe,
tubing,
shapes),
monel,
kraft
paper, cellophane, and aluminum.
market
Since the size of the Gross National Product'depends to
degree
large
a
misleading
very
prove
the purchasing
upon
the
to
power
public
of the dollar, it can
talk
to
about
its
future
growth without pointing this out.
(6) Organized labor should be made to realize that advancing
without
wages
the present there is a tendency
as
to think of
a
erally
defensive step.
as a
shift into bonds gen¬
adequate increase in the productivity per man
an
high grade bonds will accom¬
plish this purpose, but usually at
sacrifice
the
the
case
ant
of
lowest
lead
time
production and MRO items for
on
and first quarter
<•
It
tion
caoital
too early to
the recent
Middle
the
or
East
will affect the optimism
purchasing executives, according to Jthe composite opinion of
purchasing agents who comprise
situation
of
National
the
chasing
Association
Agents
Chester
Business
whose
Ogden,
Committee,
F.
Purchases,
of
Pur-
chairman
is
Manager of
Detroit
Edison
The
Company, Detroit, Michigan.
The Nov. 25 N. A. P. A.
there
are
and
areas
localized
been present is
general,
good
the
of
first
the
39%
largest
conditions
1956
for
and, at least,
continues
who
it is
say
number
a
However,
anticipating
are
quarter of 1957.
Production
the
lacking.
most
balance
over
evidence that
excellent
to
into
reports
troubled
of the enthusiasm which has
some
in
spotty,
some
high
up
and
the
are
reporting
so
increases had been out of all pro¬
portion to increased costs. On an
over-all basis, 66% stated that the
increases
were
reasonable and
34% thought them to be too high.
irigs
apparently, has
pricewise. The
leveling trend that started in Oclittle
tober is continuing.- This month,
57% of our.reporting members say
prices are higher, as compared
to 67% in October and 84% in
September. There is a strong feeling on the part of many that, in
some instances, recent price increases cannot be justified on the
basis of cost, but rather hre the
result of a policy oi: "getting, all
you can while the getting is gor^ "
in '
Inventories
The new-order situa-
year.
scare,
effect
tion
is
substantially unchanged.
Thirty-six percent say it is better
rials eased downward during the
and
past
43%
the
same
as
last month,
Commodity prices are still on
upward trend, though less vigorously than reported in the prean
ceding
months.
two
Inventories
off
slightly, though, apparently, not by intention. Employment
ls up a little, with slight drops in
are
industries
some
than
more
Inventories of unworked mate-
still
month.
While a majority
report their inventories un-
changed, there are about
10%
who
show a decline over last
month.
Users
of
special
steel
items, nickel and monel
are
find-
ing it hard to keep stocks at bal¬
anced levels,
by
accelerated
r
demands
Employment*
in
Some
of the
slight drop in
.commitments .and
oh
both
items
is
general
materials
-est
lead
and
lowest
are
time
MRO
point
for
Higher prices and
availability of most
probably the strong-
contributors
.buy
.
the
forward
months.
many
•the
the
production
at
on
as
to
the
desire
to
needed.
The special question this month
if
recent
price increases
asked
have
-
tended
sonable
and
to
rise
material
cost
a
with
increases.
chasing
executives
that
question
the
above
relationship
pointed
was
rea-
wage
out
categorically. In many instances, they believed that price
heavy
mum
decline,
some
industry
whereas
indicates maxi-
employment,
Pur¬
difficult to
answer
mentioned last month
is recovered this month, though
not strongly.
Two percent report
employment
better
this month,
with no change in the number reporting it to be the same.
Employment in some of the building trades, particularly home construction, is off slightly due to
tighter
credit
restrictions.
The
logging and lumber business also
reports
with
lower
also
have
declined,
which
Buying Policy
some
affecting marginal earnings. Most
of
these
lower
selling at
ous
grade bonds are
close to historically
or
low prices.
Thus to look at previ¬
high prices suggests
an appre¬
ciation potential, but what should
not
be
lower
disregarded
grade
is
bonds
that
these
suggested
as
mostly in sym¬
pathy witli the stock market, and
move
the further down the quality
der t.bey are the more they
act
like
stocks
lad¬
will
pricewise.
The second point to be borne in
is that there is not neces¬
mind
sarily
magic
any
"bond."
bond
A
the
in
or
name
debenture
a
is senior to the stocks of the
and
concern
better
is
thus
of
same
basically
quality than the particular
equities.
"bond"
the
On
that
other
boast
hand,
a
of
only a
25% margin of safety of earnings
over
its interest requirement, or
even
50%, is essentially of lower
can
quality than
a
stock of
and which
out.
pavs
60% of its earnings
or
a
stable earnings over
long period
onlv 50%
common
a
with
concern
as
dividends—viz., where the "mar¬
gin of safety" may be up to 100%.
'Many
the
investors
high
tvpe
have
Yielding
-
rail
of
considering
doing
these
or
bond
or
Some
so.
so
to
are
of
have be¬
the price ac¬
over
issues,
not it
turned
"borderline"
income
disturbed
of
whether
Western
bulge in the road's
the
all
rail
final
months
tion
road
will
have
wondering
portends
lapse
a
and
this
applies
of
fact,; it
now
be
may
<of
short
Haven
interest
to
year
in
is
also
payable
the extent it
in
the
cludes
indenture
senior issues.
the
great
have
deal
of
centered
concern
.around
four "borderline" rail income
been
cut
nues
as
of the
earnings
for
the
the interest
cific
1956
will
income
may
the
on
over-all
the
Missouri Pa¬
on
5s
and
all
about
basis.
1.60
times
Allowing for
road's
2%
million
$67 V2
4I/2S.
of
case
this
is provided
issue, how¬
that
interesf-
paid at the discretion of.
be
board
of
earned
directors
whether
Whether
not.
or
next
in
May
is the
1
view
the
of
moot
road's
question
restricted current finances.
from the
flood disaster loan of last
pay¬
assets
as
of last
times
its
ment,
was
net
current
August of
bond
service
much
the
deficit
It may, therefore,
appear strange that the "MOP" 5s,
st
57%.
sell
about
IV2 \ points
the
"Milwaukee"
nine
months
BEACH, Fla. — Guy It
Irving
H.
Hare
an!
Hopper,
staff
this
joined the*
of
Frank B.
Bateman,
County Road.
South
243
the "Milwaukee" covered its
year
over-all
Thus
charges
1.29
times
the
do
"Milwaukee"
exceptionally
will
Henry Kutner Co. Formed!
eq
iSnncial to The Financial Chronicle)
justify
times.
the
have
in
well
final months of this year
to
Sept. 30.
Thomas A. Sperry have
against 1.15 times for the "MOP."
to
¬
capital
$319,00$
(Special to The Financial Chronicle)
for the "MOP" 5s.
none
of
as
PALM
5s,
especially since there is a
sinking fund provision fo»* the lat¬
'For the first
Septem
a
Frank Bateman Adds
and
ter. but
showed
in
this regard also.
higher than
While
gained
was
road's, working
nevertheless
require¬
stronger
of rqlief
$6 million supplementary*
the
ber,
2lk
over
great deal
a
feasible, but the "Milwau¬
and
sue'*
narrowly
ments
cash
wit!
avail¬
point of paying full 4%% interest
same
Both roads indicated suffi¬
with
esti¬
earnings
about
cient current financial strength as
last reported to make 1957
kee,"
rate*
month;;
interest
the
on
nine
discretion, will be stretched to the
the "Milwaukee" income 5s will
be
reve¬
27.9%
that
and
of
coverage
is
-prior
gross
nevertheless
1956
only
the
it
ever,
charges about 1.15 times
to
the
that
is
that
for
In
year
cover
able
estimated
of
the
the first
it
quarter
7'.
25.4%
present year.
mated
the
on
as
seasonal growth in the final
some
sinking
15
to
in
income
Sept.
only 80%
against
2.21 times ir»
charges
against
charged
Interest is
GLENDALE, Cal.—Henry Kui»
ner
is
engaging in a securities
the
business
in order
estimate
of
1.60
place
1956
earnings
of
when
charges
the
would
present
have
Edward T. Cronin Adds
earned
eral
(Special to The Financial Chronicle)
LOS
to
earnings repre¬
by the interest on the Fed¬
sented
income
& Co. Re-
over-all
been
times, but with the assist last
year of a $2.6 million non-recur¬
addition
Si¬
3431
formerly with California In¬
1.72
ring
at
vestors.
"Milwaukee" close to those of last
year
offices
of Henry Kutner
name
was
the
from
Vista Avenue under the firm
erra
Nevertheless, official esti¬
mates
taxrefund
ANGELES, Calif.—William
McKean
N.
is
Cronin
T.
finally
Spring
now
with
Company,
Edward*
South.
548
St.
cleared last year.
Paired
in
the
second
Chicago North
are
category
Western
Joins FIF Staff
gen¬
1999, and New
York, New Haven & Hartford in¬
come
4 V2S of 2022.
In addition to
nominal interest
same
by junior liens subject to only
;
,
(Special to The Financial Chronicle)
.
eral ihcbme 4V2S of
rate, these two issues have the
points in common of being secured
A
over-all
ally
and
For
corresponding
1955
periott
during which maintenance hail
in¬
prices.
to
its
year, on April 1,
for the "MOP" 5s and semi-annu¬
March
will,,
the
a
"Milwaukee" 5s.
It is presently
frightening
by 1956 earnings.
over-all coverage of
any
having the
seems
of
amount
once
for the Neva
less
the New Haven earned
to
which
capital fund and
a
on
payable
are
the first nine months of this year
preceding year after mak¬
provision for prior charges
ing
contingent
-
4-.V&S
be covered
the
under
$250.—
some
meeting
\
*
As
appear;*
half of the full year's interest
earned
was
the
earn¬
it appears at present that less thaix
the two issues in the second cate¬
gory,
no
prior charges and "funds."
matter
that the road
reorganization under Sec¬
77,
earn
of
ings
available
for
payment
ot
contingent interest on the income*
4V2S next April 1 after providm?/
income bonds issued pur¬
suant to
re¬
is nevertheless estimate*!
it
that the
interest.
of interest payment and still lower
LOS ANGELES, Calif.—Paul X
Bannai
FIF
has
joined
the
staff
Management Corporation, 3325
Wilshire
Boulevard.
Joins
one
Goldman, Sachs
J
*
bonds
or
debentures which will be
discussed briefly in the following.
These
four
issues
are
easily
paired off into two categories be¬
cause
of similarity between mem¬
bers of the pairs.
gory
are
In the first cate¬
Missouri
Pacific income
debenture 5s of 2045, and Chicago,
Milwaukee, St. Paul & Pacific in¬
come
debenture
5s
of
sides having the same
terest
2055.
Be¬
nominal in¬
rate, these two issues have
the points
commitments,
tirely
evidenced by the
is
there
relationship, but mostly
Purchasing executives continue
to be cautious in making forward
as
the
of
increasing yields on stocks
with which they are more directly
comparable as to quality and as to
being subject to similar ^conditions
tion
em-
Purchasing executives continue -ployment
their cautious attitude
high
a
to
come
set
others.
of
have turned
those who have done
off¬
due
in
year,
cumulative, and of being on the
safe side, as far as can be seen at
the moment, as to full payment of
interest in 1957. As in the case of
funds
many
prices
above, will
Commodity Prices
had
have
expecta¬
or
the consideration
due
increases had not been unduly
large. However, there was strong
feeling that, in certain industries,
war
gain
result
a
"spread"
of 1957.
The
who
the
rate of return.
bonds
many
survey
Survey
-
of
in
propor¬
partly because of the effect of in¬
creasing yields on higher grade
i.'
either
how
elections
be
to
appears
determine
V
•
.
investors
equities
pleas¬
a
quality section of the bond market
which
general optimistic view is held for balance of 1956
reveals
be.
stock
of
where
forward buying commitments, and
months,, is part of Purchasing Agents' latest
of
This is not
thought to the large
tion
and
income
extensive
of recovery, as the
possibility
may
As
Purchasing Agents' Short-Run Outlook
on
both
chosen
to
Continued cautiousness
A shift
to
only result in further inflation.
can
such
conditions
o¥
contingent
interest
consideration to the
or
Giving
a
Four Much Discussed Borderline Income Bonds
Under
capital gain, or
(5)
North
months
While the prospects
of
GNP
the
year
nine
a deficit of $2,638,000 be¬
meeting its fixed charges am*
$5,892,000
thereafter, or befort*
seasonal
Nickel,
are:
(plates,
By GERALD D. McKEEVER
..(2) Inflation is more dangerous than de¬
flation and all
possible metnods should be
used to check and reduce it.
Continued price
advances constitute an explosive force.
(3)
t
first
the
fore
>
•
This, howevex,
matter of present
a
ported
000
"
preferred.
"funds"
side
down
and wastepaper.
Railroad Securities
■
$1,000 bond anc!
per
scarcely
l'or
;
v
common
is
On the upsida are:
a
:
of
the New Haven 41/£s into 10 share *
interest.
prices.
In
buying
of
models, the,automobile man¬
ufacturers
also introduced • some
copper,
change in the
North Western 41/£s into 15 share5*
Changes
introduction
•
rates
v ;
Is More
al¬
items,
now
the hand-to-mouth
artificially low levels prevailing during
the 1933-1952
are
the
With
members
interest
Present
MRO
on
two-thirds
only appear high when measured in the lignt
of the
a
30-day
of those who had
some
There is little
The Federal Reserve Sys¬
independent body, it should be
increase
the
range.
as
amount
to-
-
new
previously been operating in the
Similarly,
its endeavors
items, there is
shift
by
range
from floundering, and the dollar sound.
In
and
Commodity
Specific
time
lead
on
production
.
noticeable
Schlesinger presents six conclusions for the Administra¬
keel, regardless of
both
MRO items.
Investment Counsel, New York City
tion's scrutiny in the hopes
reduction
buying
.29,
in
common
unsecured,- of
of being en¬
being
non-
prior
of
mortgage,
their
being cumulative to the extent of
13V2%
(three
years),
of
having
sinking
cases,
fund provisions in both
and, finally, of being in the
doubtful
payments
on
the
class
—
as
to
1957
that is, full
New
Haven
4V2S
(Special to The Financial Chronicle)
interest
interest
CHICAGO, 111.—John L. Schliphas become connected with
per
Goldman, Sachs & Co., 20$ South
La Salle Street. He was formerly
with
and
With Mid-Continent
any
(Special to The Financial Chronicle)
payment at all on the North West¬
ern
4V2S.
fact
There is, as a matter of
rather than
third
feature
that
both
in
are
of
importance,
common.
Glore, Forgan & Co.
payment
This
convertible,
a
is
the
ST.
LOUIS, Mo. — William
Dowling and James E. Quinn
have
tual
Olive
become
Fund
affiliated
Distributors,
Street.
with
Inc.,
♦
I*.
Mu¬
4G&
24
The Commercial and Financial Chronicle
(2300)
The stock was then selling
A good investment firm in
pany.
10.
at
had
Boston
Securities Salesman's Corner
sent
partners thirteen hundred miles to
research this company thoroughly.
After a week spent in every con¬
ceivable type of conference and
By JOHN DUTTON
investigation
mendation
Control Your Accounts
sounds
ents'
is
it
success
well
as
well
to
as
week's
111
arbitrary
believe
I
this
of
title
vital
admit,
to
investor,
an
as
who
but
cli¬
your
established
be
securities
the
as
to
should
plain
for
how you should
you are going to
pull and haul against each other.
Someone said, "A marriage con¬
sists of a tug of war trying to go
in
the right direction."
A suc¬
cessful
relationship
between
a
securities
for his
cli¬
a
if there is
reply,
going to be a delay or if a client
expects to go out of town for a
few
or
All
leaves.
should arrange his
delivery before he
he
days,
payment
do
salesman should
a
is
impress his customer with the
fact that these rules are for his
his
and
and
to be sent to
the mails
ent
time
ample
is
period
four-day
program,
and
work together,
of
the
receive
they
The
on
the day
confirmation.
to
attended
be
customer.
Unless you
have an
understanding of objectives, and
what each security is designed to
accomplish
in
your
customer's
salesman
a
should
deliveries
and
payments
his
and
is
there
that
people
to
l'our-day settlement date and that
between
salesman
dif¬
matters
ficulty holding his accounts and
directing his business along sound
lines. It is a simple matter to ex¬
as
their advisor,
you as their advisory,
that certain fundamental policies
you
cus¬
has
these
in
man
cow-tows to
and
caters
tomers
The
education.
customer
piece
customer depends upon an under¬ and everyybody's protection. This
standing of where the customer is is the way the investment busi¬
trying to move investmentwise, ness is conducted from coast to
and the cooperation of the sales¬ coast and that he must cooperate
man
in
helping him get there. if he expects to invest in secu¬
I don't mean to be tough
But there is this difference be¬ rities.
tween
marriage and
salesman relationship.
ter
a
the
case
about
customer-
a
a
In the lat¬
salesman
must
ask
lead,
this, but just be frank with
If
customer.
apologetically
you
his
make
to
customer
a
made
the
mutual
client.
a
co¬
Don't
He ll
waste
set¬
it
When
time collecting
don't tie up your
with unnecessary
detail work, but help your cus¬
tomer
to
get better service by
showing him that you are too
busy for this sort of thing. If he
long-range
investment objectives,
timing is
not always something that must
be accomplished in
a matter
of
hours or days; but sometimes it is
helpful to be able to obtain action
when
circumstances
the
There
are
attractive
come
that
along and
—he
Many people see their stocks
from a day-to-day basis. They live
in
a
dream
world
of ups
and
are arbitrarges that
only be worked out favorably
matter
a
of
hours, and
times
minutes, apd
put extra profits into
if
salesman
a
operation
in
his
days
of
customer
a
over"
and
already increased its Decem¬
likelihood
ber
allowable by^more than 100,-
receive about 1,000,000
this
stock
and
12 and
b/d. Texas-has increased
its
December allowable by 75,500 b/d over the November allow¬
able of 3,400,000 b^d. Percentage¬
fluctuated
between
8
paid limited dividends
to
shareholders.
Many
of
the
stockholders who bought it sold
out. They got tired waiting, they
lost confidence in the company's
future.
But if
they had read the annual
reports carefully they would nave
obtained
praisal
what
results
were
and
are
three
matter
a
of
five,
or
years. Now after five
payoff is beginning.
ten
the
years
Surely it is pleasant to buy at
a
see
at
stock
a
18,
afterward
soon
how
but
of
many
time it to the minute?
us
This is
But
matter of fate and fortune.
often only
are
these
thougn
which
action
for
excuses
Even
situations
immediate
.
the
require
not
are
long-term objectives
moment, they often can
the
benefit
client
a
both
on
short-
a
and long-term basis and there are
times when
"If
say,
fits
our
you
are
Those
it
client should
O.K. to you, it
good
a
looks
objectives, I'll bet th^»t
right so go ahead; ACT!"
are
the
accounts
flight investment
and
strive
possible
top¬
will work
man
to
a
help
in every
because he has flex¬
way
ibility, freedom, and the go-ahead
signal he needs to take advantage
of opportunities. Investment suc¬
to
cess
upon
in
a
a
certain
extent
is
based
the ability to move and act
positive manner when de¬
cisive action
is
A
Customer
In
almost
required.
Should
a
salesman
who
trouble
col¬
lecting balances due from clients.
His
checks
in
come
late,
letters
have to be written
asking for ex¬
tensions,* and delays are common
as to delivery of securities which
have
been
from his
ticularly the
and
sold
for,
customers.
case
among
a
bought
is par¬
in cash accounts,
non-mem v e^
some
firms which do
or
This
general unlisted
business.
Here
again
a
told by
evening
that
university
problem
friend the other
a
when
lectures
some
he
given
attended
at
a
certain
the subject of in¬
vestment
procedure,
practically
the entire class was composed of
people in the investment business.
One very eminent lecturer
told
the class, "When I try to make
my
on
decisions I
own
sure
am
more
invest
for
the
even
another
I
myself.
best
man
That
why
call in
when they are asked
to perform a delicate
member
is
surgeons
operation on
own
family
their
of
who is very close to them."
When
you
realize this
frailty in most of
an
us
you
basic
matter
when
it
be
can
understanding confidant of
clients
educate.
of
I
your
comes
stock
a
the
other
day when it made a new
high of 18. Suddenly, in the mat¬
ter of days, it had moved from 14
to
18.
in.
Good
But
move
buying finally
those
from
14
who
to
came
watched
18
in
it
few
a
days and who said, "I wish I had
it," did not know some of the
background. Five
I
years ago
\vas talking with
of
mine
in
showed
obtained
his
me
a
New
a
when
good friend
York
report
to
office
he
pertaining to this
it
make
all
true, then you can stay
with a good stock
even
though
temporary market action is not
favorable
there
and
other
are
had
com¬
with
market
man
make if
can
he backs it up with value, quality
and
a
sound
investment
well
and
carefully watched. I
don't mean watching selling pres¬
sure and buying power alone (al¬
though it shouldn't be ignored).
I
refer
to
long pull
future.
The
stock
which is now selling at 18
actually sold at 2 only a few years
before the analysis to
which I
have
referred
made.
was
seen
the
lot
a
past
of
and
ups
30 years,
500,000
about
would
b/d.
Coast from Asia.
to
Oil
Crude
incre^j^
Pricfr'rfllhains
Ample
able
Steady
in the
posteq?|)rice of crude
anticipatek^ihfthe foresee¬
is
able
future.
ing 500,000 b/d and can probably
add
another 300,000-400,000
b/d
ample in¬
thelgjj^ent
ventories at
transportation may cre¬
The United States
is now producing about 7,000,000
b/d and can expand production
pro¬ although
and
ate
ducing capacity, to meet all likely
demand for this product.
inventories
large
permit
to
higher
passing
mathml
raw
Gasoline
-considered
are
too
on
to
trie
they
higher
cost, it is not likely-that they will
to
cause
the price of crude.
In
petroleum industry it is the
oil
price
until
the
refiner
in
in
occurred
In
crude
the
California
oil
crude
40c
prices
past week
low
some
has
dent
so.
sorhe
for
5
viously imported from the Middle
East.
Another 50,000 b/d may be
moved
from the Gulf Coast to
low
grades.
destined instead for Europe. West
column who have followed invest¬
Two
securities
of
this
for
longer
or
shorter
periods
than
this,
but
there is one thing upon which I
think
we
can
agree. Buy value,
book, management, opportunity,
product, ample capital, banking
sponsorship, future
earnings, and
stay with your good horses until
the race is run, or until you are
certain
you
jockey
don't
pick
can
a
better
horse,
or
both. And
too much if a few
entries don't come in first,
or
third; just make cer¬
or
worry
of your
second
increases, have
the Gulf Coast.
about
$2.55
much
Trans Mountain
price of
barrel is up as
barrel over a
dle of 1957.
few
weeks ago and results from
substantial European buying. Gas¬
oline
continues
weak
in
many
areas
buf appears to be
current
at
prices.
Based
stabilizing
Price
prevail in certain
Western
wars
still
and
will
areas
probably continue so,
However,
gasoline prices are not likely to
for
increase
time.
some
On
the
any
of them out and shoot them
probability weaken further which
is certainly a favorable sign. The
next price move however is likely
to be upward, but this is not an¬
ticipated before the big gasoline
consuming -* period
begins
next
spring.
because tney
this
have become too old
the rest
run
to
is
the
race.
Tell
customers.
your
There
of
a
lot
to
more
selling
securities than being able to read
a
balance sheet and an income
account—but
it
helps—so
does
a
gOod
understanding of the fore¬
going relationships between you
and
the
heln
people
live
you
better
are
by
trying to
investing
better.
Looking to Europe now, crude
supplied to that area came
roughly 1,500,000-- b/d from the
Middle
East, 500,000
b/d from
South America, and about 100,000
-
oil
b/d from the United States. As
Chicago Analysts
CHICAGO,
eon
we
all know from
to Hear
111.—At the lunch¬
of * the Investment
meeting
Analysts Society of Chicago to be
reading the papers,
the pipe, lines across the
of
one
Middle
which
b/d.
East
has
knocks
been
out
Canal moving 1,500,000 b/d is also out for at least
six months and perhaps partly out
for
way
L.
Shelby, President of Safe¬
Stores,
Inc.
will
be
the
as
much
as
a
Europe
Can
Oil
Of
(Special to The Financial Chronicle)
BEVERLY
Ernest
staff of
F.
HILLS,
Boren
&
Calif.
—
has joined
Bryant
the
Co., 9640 Santa
Monica Boulevard.
dividends
the
this
North
haul
European
1,500,000
America.
can
be
market
as
be
is the size of
these
paid from
earnings.
We believe this is likely to cen¬
Tankers
diverted
on
to
the
indicating
the
the straight do¬
mestic producers
b/d formerly
moving through the Suez Canal,
about 300,000 b/d were destined
for
say,
to
ter interest Upon
Shortage
Joins Boren & Co.
possible to
year.
Overcome
the
Middle East will be for 1957 is im¬
-
speaker.
be¬
East. What the earnings from
The Suez
ton
these forecasts it
apparent
part of their earnings co|ne from
dividends earned in the Middle
sabotaged
500,000
about
held November 29th in the Adams
Room of the Midland Hotel, Mil¬
Oil Producers' Prospects
on
that .Western
Hemisphere crude oil producers
possess the best immediate pros¬
pects.
If refined product prices
have
now
passed their lows as
seems likely
in fuel oil, heating
oil and possibly gasoline in 1957,
outlook for integrated companies
is much brighter. Production earn¬
ings for the next six months cer¬
tainly will be higher than a year
ago
and refinery earnings will
probably be no lower and possibly
higher than a year ago. Therefore,
whereas ,we had earlier estimated
the 1957 earnings for the domestic
industry might decline by 5-10%,
it is now possible to see a gain of
this amount on top of the record
high earnings to be reported for
1956. Earnings of the international
comes
other hand gasoline will not in all
to
b/d which will be in¬
200,000 b/d by the mid¬
150,000
creased to
per
take
to
Pipe Line. At the
moving about
moment this line is
new
that
don't have
imports may be met by
oil coming through the
Canadian
on
The
per
$0.50
as
Coast
in
two weeks
fuel oil in the past
occurred
tain
you
oil
Canada supplanting Venezuelan
Brightened Outlook for Refiners
and
ment
readers
begin before the end of the
and will become more evir
in early 1957. As an exam¬
000
Nevertheless, the Outlook for re¬
finers
has
brightened
recently.
the
Africa.
ple, the Gulf Coast may be re¬
quired to supply ultimately 300,b/d to East Coast refiners to
offset a similar amount of oil pre¬
by
Venezuela
arid in
barrel
per
year
gravity
has been raised from
oil
around
oil may
have
or
than
East
11,400 miles around Africa. Cer¬
tain shifts in movement of crude
increased
been
barrel
per
crude
to-15c
oil
by
5,000 miles compared with
about
un¬
likely to consider raising the price
of crude.
Nevertheless, spot in¬
creases
Coast
The distance across the Atlantic is
sees
stronger gasoline prices he is
Gulf
the
the haul is shorter from the
Middle
who establishes
than the seller.
buyer
rather
to
supply its crude oil needs be¬
increase
the
crude
problem.
pipe line and tank car approxi¬
mately 500,000 b/d. It is likely
that Europe will look more and
more to the Western Hemisphere
If refiners believe
consumer.
will be forced to absorb the
a
accessible
the
cost
supplies appear avail¬
supply Europe from the
Hemisphere. For exam¬
ple, Venezuela which is now pro¬
ducing 2,500,000 b/d can probably
expand
production
by
300,000400,000 b/d rather easily with an
additional
gain coming
a
year
more from now from development
of new concessions granted last
summer.
Canada is now produc¬
though the £rude oil sup¬
ply situation is tightening and will
tighten fur1fter|$&# general in¬
oil
to
Western
Even
crease
seem
100,000 b/d imported on the West
be primarily benefi¬
companies.\yith a large
amount of producti&n, in this area,
particularly in coastal Louisiana
which will profidh/piost of the
Louisiana
cial
Therefore
Patience is the best
Africa).
should
This
temporarily.
any
The Western Hemisphere
to lose only the 300,000 b/d now imported from the
Middle East and possibly another
or
People in the petro¬
industry believe ihe Gulf
area can supply the export
the
investment
Thus, it seems that Eu¬
will lose for the short-term
at least 800,000 b/d from the Mid¬
dle
East
(500,000 b/d from trie
sabotaged pipe line and 300,000
b/d from the longer haul around
rope
four months.
stocks that have performed better
to
of
noticed
earth
and
come
un¬
pertaining to my
can
help others
successfully than I can
account.
much
a
often
of myself
,
own
he
it is
was
making important
investment decisions. Here again
office there is
has
I
the
A
Salesman
every
active lives.
this, that, and the other,
we try to think straight
about our own problems we often
get mixed up in our emotional
subconscious and instead of acting
intellectually we act emotionally.
better
nelp
our
fear
con¬
with
cerned
heaven
Arabia.
in¬
three
tht^-hext
in
still
can
b/d by trie
the Middle East from Saudi
across
in allowables in Louisiana
Texas
and
%£& further
should
we
years,
even
years,
14 and
can
but
leum
were
of
allowable
stil^e^tremely small
this is
wise
Coast
plowed back, large
depreciation
re¬
established, improve¬
ments of
a
far-reaching nature
were
being accomplished, man¬
agement had a plan and a pur¬
pose; and
sometimes long-range
serves
increase
-15%
a
November
the
Europe
long haul around Africa plus 350,000 b/d still moving by pipe line
735,000
on.
going
was
about
b/d,
over
ap¬
accurate
more
a
of
Earnings
depletion
sell
000
creases
poorer.
and when
act
ftam
reactions
procrastination.
for
We
co¬
Procrastination,
inaction, so-called "I'll
it
client,
the
much
that
dominate much of
account
an
just
are
that
has
I have
Back in every man's subconscious,
downs in
are
certain
insecurities
that
so
have
action will
obtain
can
mentally
dollars richer; it's down,
are
they
some¬
behalf.
of
look
at
they
Theije
can
in
downs. The market is up,
for it in the secondary mar¬
In
the general
market continued its long upward
climb during the past five years
While
gain.
bought
too!
Emotional Jitters
salesman
help a customer obtain a
participation at the best available
offering price rather than paying
ket.
will
issues
new
invest in securities taen
HE MUST FOLLOW THE RULES
can
more
cashier
wants to
warrant.
a
accounts,
busy
to
comes
show.
the
run
your
slow
Timing
Industry's Prospects
the Western Hemisphere
an
was
must
understanding and
operative effort.
3
page
Petroleum
recom¬
a
stock
if a security is a value, if it repre¬
tlement on the designated date;
direct, he J must offer
sents ownership in a company that
or if he is late, you take the atti¬
suggestions, and he must have co¬
has a future ahead of it that is
tude that you'll appreciate it if
operation in many ways. When it
with
a
capital
F,
and
he'll please get around to mail¬ spelled
comes
to
a
marriage we know
there is management know-how
who is boss but even a marriage ing you a check in the next few
and determination that will move
then yob will never bill
works better when fortified with days,
he
from
excellent long-pull investment for
capital
The
he
that
Continued
their
of
one
Thursday, November 29,1S56
...
in this country,
companies
the domestic integrated
with
substantial
shut-in
crude
production, Latin American
ducers
which may
export
pro¬
oil
to
Volume
184
Number 5590
.
.
The Commercial and Financial Chronicle
.
(2301)
and
Canadian
should
55%
this
noted
Canal
which
caution
and
Iraq
full
and
in
the
next
it
the
pipe
line
these
of
would
dent.
become
However,
Stock
gov¬
compa¬
nies favored in these various cate¬
gories
accentuating the credit
in
to
—
new
LONDON,
(2)
Domestic
ada,
'
Producers
Honolulu,
(3)
Latin
;
best
j
change
Land
Eng.
the
was
influence
London
the
of
such
and Standard Oil of New
which
in
fact
from
this
may
earnings
than
will
be lost
but the
was
willing to
spond
to
hopeful
East.
news
views
or
(4) Canada — British American,
Imperial Oil and Home Oil.
re-
such
that
emersed
"time
from
tim?
to
The
extent
to
which
Name Daniel, Frazier
<
To NASD Committee
SEATTLE, Wash.
has
ment
been
tion of two
trict
the
o
Einzig
r,..
A
ctnnir
TTv_
change
cal
become
and
sensitive
to
military factors
the
political
of the Middle
of the
sions
k.
No.
1
(Idaho,
matters
has
aHnnteri
nroptino
nrar-tioo
practice
now
new
s
more
importance
the
stork
and
military
weghtiest
than
-the
is
shares,
Oregon, Washington)
tional
Association
Dealers. Robert E.
of
hardly
the
Na¬
Securities
Daniel, Exec¬
Pacific
Co., Seattle, has been
elected to succeed A1
Hughbanks,
Inc.,
Seattle;
and
Frazier, partner, Reid,
&
Frazier, Spokane,
.Hughbanks,
Conrad
O.
'McDowell
has been
liam
elected
A.
to
Nielsen,
succeed
Wil¬
Merrill
Lynch,
Pierce, Fenner & Beane, Spokane.
Mr.
Daniel
has
of
ward
course
be
been
with
the
tne
fears.
the
on
Even
S t
o c
far
so
Exchange,
have
reunited
the
Tories
& White,
of
Pacific
whether
University
in
years
fore
of
the
graduate
a
Idaho,
U. S.
of
the
served
six
Force
be¬
Air
joining Murphey-Favre, Inc.,
Spokane, as a salesman in 1947.
He became a partner in
Reid, Mc¬
Dowell & Frazier in 1949.
Glore, Forgan
the other
CHICAGO,
111.
William
—
K.
it
is
Co.,
La
Salle
&
Street,
135 -South
members
of
the
The
crisis
ment
for
thereto
formerly
Loewi
for
&
Co.
and
prior
Mason, Moran & Co.
in
Throop M. Wilder
Throop
ated
Martin
with
at the age
away
past had been
a
to
hold
Walks
There
Party-politi-
have
been
vir-
no
Drop below
extent.
of view at any
crisis
to
has been, and is
beneficial to some
be,
Indeed it is possible
that,
had it not been for the crisis, industrial equities would have de-
clined to
extent comparable to
an
as
result of
a
paralyzing
effect
of
large
strikes. Those strikes, or some of
them,
yet materialize, but at
they appear to be
much less menacing than they did
the
may
moment
ago.
jn
are
0f
two
previous quarters in 1956 and .8% lower
Industrial Con¬
published in "Newsweek."
this dip are offered of this "sector that bears
close watching."
1
survey,
Three versions of
addition, economic prospects
closely linked with prospects
reopening of the Suez Canal.
The" 'announcemenfof "nctrnfTT
swing in history, completely off-
tioning
setting any seasonal factors.
The fact that some companies
The natlon's leading manufacsun" turers aPPr°Priated less money for
Diies
Dr0vided
forceful
re" caPital spending during the third
minder of the extent to
which ?uuarter than thhad in +each °J
exJ:ent
wmch the two previous quarters of
y
P S .°"
19566" according to the second
L 5?
JWay' Early esti- qUarterly economic survey preand
of
in
cuts
oil
a
.
7"
ji
—.
oftVe
President
.
.
ap-
during the first or last
lends support to the sea-
year
quarters
sonal argument.
"There's still
Conference coara under me spon^onieience Board unaer tae spoil-
re,7
r^.corJ?ldere;d *n the light
,
tent
~
.
Pr°Priate expansion funds for the
entire
pareci by the National Industrial
InflrWthlratime required lor
to be
clearing the Canal had
V
~
-7
interpretation
interpretation";
SOrship of "Newsweek" magazine,
.
.
.
third
a
possible
according to the
tne
publication. "That the third-quar-
Moreover" This s.urTe7' as reported in the ter decline was neither cyclical
that he magazine s Dec* 3 lssue> als0 re" nor seasonal, but was due to un-
damage
reaiizes
Nasser
I—
V
-IvT IL
i
7
companies, aiso ten snort oi year-
xi
ex-
of
re-
international
sharply divided according to
they favor a refusal to
evacuate
they
Port
want
United
to
"Suez
with
»7.i £
^iJLjx
„
the
mi^
demands, of
of
Mr.
feat
of
tight
in-
the
tV-xVi
troons
e
U0°PS
Nations.^
of Stock
it
be
Mem-
gov-
accepted
strong dis,
between
Suez
Group
Hammarskjold.
rope walking
which
may
necessitate
a
down
possibility of the return
nessmen
der
that
a
con-
general
thfx result
of
which
iripalculable.
The mere
Government
be
It
the
sends
spine
and/investors.
each
time
cf
a
a
Socold
tne
pasx
two
Z
well
well
foreshadow
loresnaaow
a
a
Y' "l313
election.
have
w|a 'he Presidential
Some companies may
...
sat
annronriations
on
nlans
nave sat on appropriations plans
°m^
to
be
re-
traffic
in
the
S1X °r *nine mon
econence*
s
blowing,
Special Significance
Six Exceptions
"The
dip in third-quarter apexceptions, the list of propriations
takes
on
special
industry groups surveyed was meaning in the light of widet"a \ industrial production in down anywhere from 15%
(for spread predictions that the econBritain will be affected by oil stone, clay, and glass products) to omy as a whole will
edge up
sh°rtage even though its extent
(for transportation equip- slightly during the first half of
Pe mitigated by an increased ment) from the third
stored
very
to
normal
future.
near
It
"With six
feared
is
15
lmP°rt of dollar oil.
iasl
In such circumstances it is
wonder
about
that
the
each
time
Middle
unfavorable
the
the
East
news
crisis
should result in
of
the
Stock
quarter of
exceptions: Elec-
machinery and equipment,
28%; non-electrical machm-
up
is
anticipation of
The
year.
trical
no
12%; chemicals, up a
168%;
miscellaneous
durable goods (lumber, furniture
and fixtures, ordnance), up 33%;
ery,
up
whopping
a
prolonged blockage of the Canal
weak tendency
Exchange.
The
a
miscellaneous
nondurables
(tolonger President Nasser prevents bacco, leather, printing, and pubthe clearing of the Canal, the more lishing), up 83%; and oil and coal
British industries
are
exposed
to
is
difficult
to
foresee
how
indi-
motive
vidual firms or even individual
industries are liable to be affected- Eor this reason all equities
tend
decline whenever the
ProsPects of an early settlement
aPPear to weaken.
siuch
In addition,
transportation equip-
was
sectors
down,
non-auto-
of
that
industry,
aircraft
as
and
railroad
equipment
manufacturers,
up. The auto outlay dip is
were
proo-
ably explained by the fact that
automakers haven't enjoyed the
same
super-boom this year as
they iiad in 1955.
The weakness of the Stock Ex-
change need not give rise to fears
"Somewhat disturbing, too, was
of repercussions on the economy, the fact that cancellations of alIt is true, one firm of stockbrok- ready
approved
appropriations
ers failed to meet its engagements rose
slightly
during
the
third
positions would be revealed
While that figure is minute
even
com-
if the downward trend should be- pared with the $2.6 billion in
come accentuated.
The extent to
which security holdings are fi-
with
the aid
of
approvals, it is
close
a
I
new
sector that bears
watching," Newsweek
borrowed
says,
_
,.
money
has become materially
ducec}
jn
longed
the
course
credit
of
the
pro-
Quite
possibly
by
the
credit
squeeze itself may become accentuated as a result of the decline
the Stock Exchange, because
banks will be insisting
ment
trial
of credits
firms
_rtll4fioe
e£fulties-
busi-
No
won-
cline
on
new
com-
might
have
tha+
the
a
on
repay-
granted to indus-
against
Tv/
of
bonds
ovfont
or
A
extent the de~
Stock
salutary
Two
views
Examines Salutary Effects
Exchange
effect
in
Explanations
Three
re-
squeeze,
next
off
diametrically
of
the
offered
are
"Newsweek":
"(1) That it is the start of a
genuine slide in capital spending.
.
.
.
Some
reached
industries
their
goals,
cautious look around.
may
.
.
then
bit.
a
appropriated
level
of
the
by
the naleading corporations from
July through October undoubtedly
is scheduled to be spent during
the
half."
second
Los
Angeles Bond Club
-y
i|M„
10
LOS
MrFarlanrI
ivicrariana
ANGELES, Calif.—Dr.
McFarland, Educational
Kenneth
Consultant of General Motors Cor-
poration,
and
will
guests
of
Los Angeles
ing
on
address
The
at
members
Bond
Club
of
luncheon meet-
a
Thursday, Nov. 29th, at the
Biltmore Hotel,
A
Dr.
nationally
known
educator,
McFarland will speak
the
on
topic, "Ropes of Gold."
_
Join
Bache
New
&
15ache
Co.,
York
c
otaix
members
Stock
of
Exchange
the
and
other
leading exchanges, have anthat Margaret C. Renier
joined their uptown branch
office, located at 724 Fifth Avenue
nounced
has
as
registered representative.
a
,
The firm has also announced the
appointment of the following registered representatives in its outRichard F. Fit-
ton, Boston; Robert C. Moore, Miami; Stephen S. Hu'oer, Scranton;
Joseph H. Rivenson, Rochester and
James Long,
Joins
have
Wilkes-Barre.
Draper, Sears
(Special to the financial chronicle)
BOSTON, IVIass.
Hallowell
.
either
Some
tion's
temporarily,
a^ least, and decided to pause for
a
dip
of-town branches:
opposed
decline
and
year
or
money
products unchanged.
paralyzing effect of an oil while the
At the present stage it ment field
nanced
.
endeavoring
ing the coming critical weeks.
is
fraught * with
dangers
of
ceivably
election,
mav
^
wardjpressure on the entire
optimistic
Canal
during
int leveling-off or perhaps a decline until they were certain which way
in 0utlays-and a parallel down- winds
from
Washington,
were
may or may not be successful dur¬
crisis
o+nriv
,
Exchange
unduly
the
e^pect
01
.
Tendency
would
of
no
.
is
the
those
"foreign troops"
the
longer toward the middle of November, quarter to $137 million, from $108
Right Wing It is considered unlikely, how- million in the second quarter and
sufficiently ever, that many more such weak $101 million in January-March,
its
The government
steer a
so-
m^solution
meet
approval.
to
of
is
toJpring down the
if
the
The
gr,oup"
just a handful of
Tories.. It is now
ernment
with
ruling.
Parliament
of
whether
or
comply
Nations
called
bers
Said
5?
also
;
eludes
the
is
fears
the
'''I''31,11'3'1 ac,aal
quarters mat spending. Thus, the third-quarter
V
j
his definition
expensive
muj&nizix
'
u-
shortage.
Tight Rope
a
part xby
of
equities
trend
shivers
On
a non-
/
cialist
partner in Farr &
gov-
balances.
November 20th
Co.
of
case
would
of 72. Mr. Wilder in the
it
case
difference
equities,
associ¬
Maynard &
Stillman,
Co., passed
*
Wilder,
ex-
the
domestic political
Government supporters
on
Cabinet
-
means
whether
This
was
war
declining
situation.
changes. Mr.
Bosse
ground of
in existing
v
and
of the statistical depart¬
down-
liquid cash.
or
rather than bank
New York and Midwest Stock Ex¬
manager
the
hand, in
Governmcnt
associated with
Forgan
section
Ihe
little
preferable
mi
Bosse has become
Glore.
oil
nuclear war, there is certain to be
advanced inflation, in which case
should
(Special to The Financial Chronicle)
the
in
other
all,
holds
one
numerous
Bosse With
of
quotations cannot
ernment bonds
are
Northwest, in 1931.
Frazier,
the
likely
than year-ago totals is revealed in National
ference Board quarterly
tne
—
outlook remains uncertain.
the
even
in' which
percussions
Mr.
not
Capital Outlays Lower in Third Quarter
in
avoiding a
split in the party—thanks largely
to the Opposition
attacks, which
cir-
depressing influ-
on
very
&
company
of
termination,
makes
plained
predecessor
rate
strikes, and even though
machinery
through
which two months
though the government'has
succeeded
information.
any
After
Pacific Northwest organization for
years. He entered the securi¬
ties business in 1929 with
Drumheller, Ehrlichman
on
™ii+ir>ai
market
conditions nuclear
25
Blyth
Co., Inc., in Seattle. He joined
to
tension;
explained
war
of
Vice-President,
Northwest
Frazier
to
section
the
ence
O.
attached
is
economic
has escaped the
Ccnrad
that
Exchange that is primarily
affected
Daniel
tw
new"fn exisSn®
Although
Stock
imnii«
implies
Fvrhanoo
cumstances
utive
will
elec¬
fhs't,tcolUmn"ao7 iteTr^nt-Vee!
This
fc,.
the claims
rigidly,
this point
members of Dis¬
new
Committee
hhutrt
From
its repercus-
sewwrtfiHrs swswysaji
.
ends.
interna-
tional horizon it has
has
Announce¬
—
made
Paul
the
on
difficulties,
be pressed too
their actual decline
tiially
arises
is
the
the
plication
Ex-
than
more
the Middle
in
than
change
plus
larger production and refinery
earnings ,in the United States
r
more
Stock
more
area
There
ups,
Jersey
gain
Suez
downs
through compa¬
Gulf, Royal Dutch
as
downs
the
were
be
may
Ex-
crisis.
obtained
nies
and
ups
Strangely
—
representation
Stock
much under the
very
of
Throughout
—
-
America
enough
Amer¬
Louisiana
and Seaboard,
:
—
November
exemplary fashion in sharp
to the political side of
Labor
for the benefit of its
-
Indiana.
an
movement, which has
endeavored to exploit the cris.s
demands.
wage
diseven
handled
are
the
and causing firmer resistance
squeeze
become
Moreover,
claims
wages
taking its normal course,
it is
widely expected that, having re¬
gard to the political and economic
contrast
salutary effect of
the following:
are
(1) Domestic Integrated
Humble, Sinclair and Standard of
will
weaker.
critics of the trade units must admit that since the beginning of the
Suez
crisis, they have behaved
.f
is. endeavoring to steer a middle course
between the
demands of the "Suez group" and those of
Mr. Hammarskjold,
and points out that the crisis has had the
Among the good grade
demands
tinctly
ernment
unlikely.
depreciations
Stock
Ex¬
change need not give rise to fears of repercussions on the
despite relationship of declining equities to discour¬
aging Suez settlement news. Dr. Einzig shows hew the
moment
compel industries
firmly the new wave of
capithrough falls in
Exchange values, the psychological reason for excessive
tal
wages
the
on
economy,
evi¬
more
the
at
this prospect seems
would
demands.
.wages
Exchange
weakness
avers
it
resist
in face of the evidence of
By PAUL EINZIG
Noted British Economist
cur¬
various
groups would decline and the at¬
traction of the international com¬
panies
to
service
months, the
attraction
,;>.v'
return
uninterrupted
six
Suez
the
on
London Stock
might
the
that
Impact of Suez Crisis
Canada's
than
year
should
that
to
rent
of
word
a
of
more
coming
satisfied.
now
As
be
producers
supply
needs
25
has
—
Benjamin H.
become
associated
'
with Draper, Sears & Co., 50 Gon-
peri0CT
York and Boston Stock Exchanges. Mr. Hallowell was formerly
"(2) That the decline was seasonal. A dip might reasonably be
expected during the July-October
iast
was
.
.
.
vear
in
the
But it didn't show
because
the
up
economy
greatest capacity
up-
gress
for
Street^ members of the New
manv
years
Sachs & Co.
with
Goldman,
26
Continued
from first page.
kies
•
1
shows
26.9%
that
total
of
Trends and Prospects
in
responsible
and
physically
for
brought
been
ago.
As
new
pseudo-
And
the
The
history.
cial
to
tensions
the
that
and
nervous
lead
can
physical
things,
other
Among
various
to
ailmenjts;
to
relieving strain
the heart; and it may
on
not
cause
based
and
burden not
Today, the sensible, moderate approach to the use of
alcohol in beverage form is being made by leading phy¬
scientists,
other
and
Federal
This
also by outstanding
command respect.
and
this
published
book
known
well
a
"Live
year,
alcohol to
such
amounts
machic, provide
in
as
appetizer
an
a
of their lives."
Another
A
'Oivine
in
New
York
City,
f
mission
has
always
been
to
bring
before
industry and its products.
tion
scientific
to
facts
authoritative
and
moderate
use
our
lation to
the
harmful
public
and
degrading,
believe
years,
will
—
the
as
be
GEO.
Drys
would
have
and
diat
a
has
modern
the
expect
packaging
few years ago.
aging,
to
come
fully
the
lasting
It
was
and
began
not
the
outlook
for
reason
such
as
wines
have
the trend toward modern pack¬
trend, incidentally, in which
Raymond Loewy-designed Old
to
was
line
with
also
brandies
ardization
throughout
their
proven
Wine
their
for
wines
of
have
Industry,
The State
so
rigid
stand¬
that
quality
be sacrificed.
The great
experiments at the state
not
may
have
thankful for:
California
of
of
number
colleges and universities, which en¬
able us as vintners to steadily im¬
only
not
prove
also
Speaking
Cella
at
techniques
but
J. B.
acreage,
not
be
I
better
again
with
a
con¬
foresee. that, the prospects
steady growth of the
the
more
appear
formerly
this
the
to
as the vintners owe a great deal
University of California, at Davis, and
well
as
to the
to Fresno State College,
themselves invaluable aids
Valley 'especially
here
in
the
both
of
which
have
proven
all phases of the grape and wine industry. And now
especially with the Fresno State College training of
competitive wine personnel and growers, I can foresee
no
reason
why our company and our industry as a
whole
should not flourish.
Coupled with these rea¬
in
fre¬
an
accept
growers
thanks
of
are
sons
the facts that this year there
JOHN
DANIEL,
J.
In the twelve months since
the last review of the wine
industry by the "Chronicle," the
liberally cordials
more
American industry has
healthy progress on many fronts excepting cor¬
rection of artificial handicaps imposed by governmental
made
of
regulations and administrative poli¬
cies
discussed
that issue.
in
Califor¬
substantially
The total sales volume for
nia wines has increased
Creme de Menthe and Creme
being used widely as mixers. Even such
Rock & Rye, and Sloe Gin — are moving
position
Today, whiskey is a widely ac¬
cepted gift item, the distilled spirits :
industry has a goodly share of the ;
$2 billion per year corporate gift
business, and we're reaching more
each., period.
This
-again
and
year,
in
an
experiment,
took a revolutionary
introduced
our
Early
Goloramic
we
Decor
Garvin'
Brown
assess the full impact of this type
packaging on the market. However, preliminary re¬
ports indicate that our limited production of this item
scene.
seur.
proof without a doubt that beautiful
whiskey packaging is a desirable thing.
spirits industry in the lucra->
cive Christmas gift field is not a temporary development
produce
bake
A
more
more
and
in the industry
imaginatively beautiful gift items, we will
more
of
a
study of the sales of premium bottled-in-bond whis¬
It
.
At
one
of Vodka
.
-
tavern
time
on
we
a
now
bar,
and
a
us
year,
\
and
of considerably more than ay
based
upon * estimated
1956'production, potential grape pro-. v
-cruction and utilization in the coming;
as
restaurant
.
/ 1
Today,
it is
more
than
representing
a
six
of the most fre¬
one
fact
that
Americans
million gallons of Vodka last
90.5%
increase
over
year,
The
-
ing the last year in which, wines of California Premium
Producers have been compared "blind'!_.-with-the fine
wines
1954.
In six
of
Europe,
in numerous instances, purchased at
the wines of-the California
revealed most interesting re¬
three to four times the cost of
Premium
sults.
.
would look with curiosity at the bottle
bar.
and .the sales trend of wines..
quality of California wines is.,
improving each year and its pre-.
John
Daniel,
Jr.
miurh quality wines have received
■.more recognition of their merit
as - - :
I
compared with the fine wines of other wine growing
regions of the world than ever before.^
~ t.'A -r"^ i.
A series of tastings held throughout the country dur¬
-
.
phenomenal.
•
wine
is
basic need for every well
well as a "must" for every
quently used bottles on the shelf.
The trend is evidenced bv the
consumed
be
future
to our-
longer merely the choice of a sophisticated
is,- indeed,
successful
year, as we
share of this market.
no
maintained.at-home
Christmas,
role of the distilled
,—I think it's clear that each
to
product
few, the continental drink, so to speak, for the connois¬
be completely gone from the dealer's shelves long
The
Its rise in popularity has been
Vodka, is
colors in
.
volume
the allied
liquor field, nothing has struck me so forcibly as the un¬
precedented - acceptance of Vodka, on the American
"
"Geo.
early still to really
will
a'real
pan,
is truly one "baby" we can call our own.-;
In the many , years of my association with
Times
of
before
adds
ai flash in the
but a product destined toremain one of our most profitable staples.
Particularlyheartening is the fact that Vodka is a promotion of the
rectifiers of the nation rather than the big distillers. This
course
Decanter, truly a
-diarp-departure from whiskey pack¬
aging practices of the past. It's too
it
Because
Not
well
...year,
<
.However,' the biggest thing that's happened
line.
may
can
be expected 'to A
remain in balance in the foreseeable. v
spurting
Vodka.
through this giftbusiness approach than ever before.
*
and
Ginger Brandy, which was always popular, has
in sales each year.
We know, because
Jacquin's Ginger Brandy is the largest selling product
of its kind in the country and increasing its sales curve
consumers
Co.,
Inglenook, Calif.
Cooper
are
as
moderate
JR.
been
standbys
played much more
role, that opened new
a
Managing Partner, Inglenook Vineyard
ahead.
Cacao
was
to the grower for
grapes, and
there is an extremely healthy inventory.
All these things tend to raise the price of wine.
crush, we paid a higher price per ton
experimenting,
learned
bevr
market, the public recognition of wine as a
erage,
vistas in marketing for our industry.
de
Forester decanter
new
Cella
for we
now as a grower,
Vineyards also have
siderable
could
our
products.
our
more
cot—are big sellers today.
than
minor
Wine
optimistic
quality in test after test.
the
be
to
known
are
and
and
in
We,
foreign derivation. The anisettes and
kummels are more popular and expanding the base of
operations
for
leading
cordial
and
brandy
houses
throughout America.
Fruit flavored brandies—blackberry, peach, and apri¬
and
a
a
the
an
compared with
greater this year
than
for
any
year
since Repeal.
Producers' inventories are in a sound
our
for
only the equal if not superior quality
wines
nation
much
the tax to
Maurice
have
we
spirits industry.
the same impact
lovely decanters had just
will
the
worth
cut into the moonshine
spirits.
BROWN
distilled
it
is
domestic
fornia
after
of social
grace at luncheons, cocktail hours,
and
late
evening
entertainment.
Mixed drinks, on the rocks, tall cool¬
ers, in which a cordial or brandy is
a
principal ingredient, have broad¬
ened our
enjoyment of these fine
Louisville, Ky.
we
that
The
II.
foreign wines but the gorwing pub¬
lic
recognition of this fact.
Cali¬
experimented, so to
cordial and brandy
Mixed
what
In
And
oi
dinner drink, is now a part
President, Brown-Forman Distillers Corp.
Color
Lowering
War
statement
quently at parties and social affairs,
.
GARVIN
bright days of operation.
opinion
my
World
gallon.
a
is
It
of
drinks
opinions con¬
of alcohol in
incalculable
of
benefit to the entire industry.
entertainment
Industry is. by far brighter than at anytime since before
we
speak.
that moderate use cf the industry's
beneficial and invigorating — rather than
is
naturally
J. B. CELLA
American public
It
the fact
products
phase
revenue.
President, Celia Vineyards, Fresno, Calif.
have had to contend with the limited
the knowing few,
who enjoyed a cordial or a brandy
after
dinner, for the bulk of our
business.
But, little by little, the
campaign to give wide circu¬
our
latter
customers
and the grapes themselves becoming a more
precious commodity.
What benefits the wine market
certainly benefits the wine grape grower.' And again
and
belief that
of
serve
as
wine
For
beverage form.
It is
This
women.
avenue
new
to
ways
trend in
new
distilled
MAURICE J. COOPER
consumption
therefore welcomes the opportunity to call public atten¬
cerning the benefits of the
many
an improved social level, are the
the strong position today of cor¬
dial and liqueur houses.
speaks of it
LBI's
up a
ward to many
factors contributing to
the
public the facts about the
reading about the
accepting interesting drinks and the
popularity they are enjoying as part of the Ameri¬
scene augurs well for the independent
rectifier.
By continuing to stress enjoyment through
moderation, we in the allied liquor field can look for¬
Time, education, and
of beverage alcohol.
cocktail hour "a time of real renewal," Dean
as inspiring the imagination and clear¬
ing the vision. A cocktail before dinner, according to
Jhis eminent clergyman, puts a new face on things, and;
helps one face evening tasks with freshness.
ing
Pike
of uses to offer the
score
a
President, Charles Jacquin et Cie, Inc., Philadelphia, Pa.
statements
Call¬
several
have
you
: -M-.
new
can
increased sale of the legal product,
than make up the tax differ¬
the government.
•
1
for
ence
\
wonderful to
so
will be in
we
$10.50
are
When
particularly
.
The
an
convinced
I'm
■
makes
use
.
.
obvious that the tax structure has well passed
point of diminishing returns.
recent
favorable to the moderate
of fruit juice
'/
variety that makes Vodka
enjoys
opens
the production of illegal "moon¬
on
reasonable rate would sharply
and
book, "Beyond Anxiety," by Rev.
James A. Pike, Dean of the Cathedral of St. John the
^ffirits. This neutrality lends
mixing with every type
Vodka, and more of them respond each day
other industry in the nation.
any
The
unique because of
public, and as many variations, plus the ease of mixing,
you have a tremendous opportunity for different adver¬
tising approaches. The public becomes interested and
receptive.
The advertising copy is informative.- The
seriousness is the result this exorbi¬
having
traffic, result in
the fullness and enjoyment
added to
neutral
:■
this
is
promote.
our
distilled spirits
on
greater
seems
the
physician clearly, states that moderate drinking
eases fatigue and brightens a person's outlook.
He adds
that "hundreds of patients" have told him how much a
drink "has
It
problems in several areas; for one thing, of
is
tax
It
This
popular drink.
a
It remains
versatility.
juice.
"moonshine!"
lease on life for the elderly, help
high blood pressure conditions, and
help but become
grain
smooth
to
overwhelming
this
including such everyday standards as orange and tomato
shine"; by the government's own estimates, about 25%
of
the
distilled
spirits consumed in this country is
fight tension?
daily
taxes
even
tant
sto¬
and
equalled by
causes
Of
a new
heart and
some
act
its
filtered
itself
\tax burden alone.
He points out that
person's general health.
a
moderate
its
it tends to price our products at a competitive
disadvantage with out comparable gift items just on the
Longer—and Enjoy It!" Dr. Peter J. Steincrohn details
some
of the medical benefits of moderate amounts of
is
reason
felt
have
seller in Pennsylvania.
one
Vodka couldn't
course,
churchmen and others whose opinions
In
up,
industry faces. The con¬
sumer is now paying a tax that equals roughly 55%
of
the retail cost of the average bottle of whiskey; a tax
inequitable tax situation
emotionalism.
sicians
glass situation cleared
spirits industry, both at gift-giving time and throughout
the rest of the year. The most serious, of course, is the
revealed
ailments of any sort. Dry-claims that it
not on scientific fact, but on prejudice
any
are
does
orders before Oct. 31.
our
better shape than ever at the end of the year.
There are also
other problems facing the
beverage form does
of alcohol in
use
the
with
and
the body
even tend
On the other hand unbiased scientists have
unable to fill
been
However, we do have more than enough orders pres¬
ently on hand to more than offset this temporary drop,
prolong life.
that the moderate
six-month fiscal statement (as of Oct.
will reflect a small earnings drop, compared
fiscal situation last year at this time, because we
our
have
blood
the
dilates
it
to
mental,
of
sorts
bottle molds for some weeks.
our
1956)
31,
alleviates
it
vessels, thus easing the flow of blood through
and
delivery of
The result; our
Tjie
Our
mand.
\ '
rum.
de¬
sales have soared and today Jacquin's Vodka
is the number
public
year.
monkey-wrench
delayed
simply.
business is not without
in the works, however, came
with labor trouble in the glass industry; a strike which
containing alcohol is benefi¬
adult and has been so recognized
normal
throughout
with this
up
of beverages
use
role in the gift
organization to design
packaging, which is, of course, an added expense.
so is the production of the lovely decanter he came
our
the human organism.
The net result to date can be stated very
1
„
We retain the Raymond Loewy
propaganda with the truth, LBI in recent months, has
been giving a great deal of attention to the job of seek¬
ing out and classifying a vast body of medical and scien¬
tific information about alcohol and its actual effect upon
moderate
-
Take our own experiences this
good example.
for a
year,
"scientific"
Dry
•.
its problems, however.
the facts of scientists,
the
countering
of
means
a
.
.
The distiller's
of course, but it has
moralistic one.
place of the old
in
....
.
the
traditionally the pres¬
tige whiskies. Also, this class of whiskey fits better with
the concept of a proper corporate gift — which today
averages between $5 and $10 per gift, as compared to
the average cost of $2 to $3 per gift not too many years
numerous
to date by the adoption of a
up
scientific approach, answerable by
'/
sale of
Jacquin's,
at
Thursday, November 29,1956
.
the American scene, Vodka sales already
short years on
exceed the
We,
bottled-in-bond whiskies, obviously, are
Premium
social problems.
This attack on liquor is not new,
the month
in
are
favorite gift items, since they are
Liquor and Wine Industries
harmful
sales
December, anci that 45% of the year's sales are in the
of
last quarter.
is
Financial Chronicle
The Commercial and
(2302)
In
Producers, have
these
tastings,
where
no
labels were
visible
views, on the relative merits of Ameri¬
can
wines and "imports'* could not come into play, the
California Premium Producers' wines" ranked, as- -.high
and preconceived
_or
higher than the foreign wines...
Inglenook the healthy trend
A
•
.
*y\-}
industry in
general and of California .Premium Producers in parr.
At
of the
184
Volume
Number 5590
ticular is reflected.
consumer-
added to
ance
that
our
.
The Commercial and Financial Chronicle
.
especially pleased with the
are
Estate Bottled designation
labels in the past year. This positive£$ssur-
the
to
response
our
from
We
.
of Inglenook table winer$£1^mes
tended by us during every step
drop
every
vines and is
of
its development has emphasized our custom crafts¬
manship more readily than any former presentation.
of the cut price artists who flourish in
m. fournier
Seal" Urbana Wine
President, "Gold
periods of excess
The Industry cannot continue to sell wine be¬
supply.
low
cost
Retailers would
products
control
their
consistent
Co., Inc.,
of
Hammondsport, N. Y.
The
is
outlook
extremely
the
for
York- State
premium wine industry
There is no doubt whatever that
bright.
two
next
whole
the
three
or
wines
will
years
and
the good
forge ahead.
for
accounted
be
can
in
This
several
First, New York State is fast
ways.
to
quality.
stock
wine
production and
able to
are
feature
and
companies
seized
by Federal agents reached a new high for the
ending June 30, 1956. The figure is 14,499 as com¬
pared with 12,509 for the previous similar period. Add
who
year
maintain
Products which have
a proven record
built up over many years, by
sound promotion methods, will
acceptance
advertising
create
advised
established
and
becoming recognized as a leader in
the
premium wine field.
Second,
publicity by wine and food editors
in
various
publications has given
wine a place of importance.-in the
field of entertainment and gracious
c
living.
Third, Americans are be¬
coming "wine-conscious" as a result
of travel in Europe and coming in
contact with it in so many circles.
Too, prices of imports are expected
to show large increases because of
crop
failure and economic condi¬
tions this year. There will be short¬
ages
of
certain
wines.
All
this
Charles M. Fourmer
should tend to give the wine buyer
an
initiation to America's premium wines.
Once tnis
nut-shell, the retailer who stocks, fea¬
displays standard, advertised wines is bound
be
a
better
off
than
those
who
always
are
looking
foi; the long profit special which inevitably costs them
customers.
/
andre
leroux
President, Leroux & Co., Inc., Philadelphia, Pa.
into
I
their
the American
sure,
am
All
own.
is
ask
we
that
will
brands
the
From
indications
all
mendous
dollar
increase
There
these
salient
of
features
Leroux
crushing
of
season
the
Industry
marked
very
a
In 1952
among
production, with wine prices at the
low, and no desire on the part of
bigger wineries to add to their
already large inventories. The 1952
Government
report indicated
that
the
crop
was
a
little more than
normal.
However, by the end of
October,
the
California
vintners
suddenly awoke to the fact that the
crop was one of the lowest in re¬
cent history, and the season ended
only
1.200,000
tons
of
thought that
inventories
a
the
California
the
5%
each
for
is
normal
V While
wine
wine
of
we
Everyone
There
al¬
are
care
of
higher
Whv the management
hound
at
operated
gallup,
is
walk
slow
a
nine year
rather than their
writer's
this
beyond
usual hasty
understanding.
These
aDnarently ■ unperturbed bv a
inventorv of distilled l'quors. so why be afraid
are
18 months' supply of wine? Informed opin¬
ion in the industry is that at least a two year's supply
of
only
should
in
an
always
grape
the
be
hand
on
to
take
of
care
variation
the quality of
production, and also improve
product.
Those
wineries
have
who
of
their
products,
maintained
aggressive
ad¬
bulk
the
year's short
market
cut
is
prices
crop
to
continue
in
is sure to create, a raoidlv rising
almost
and
bound
With the change in attitude, which
successful operation.
this
are
inevitable.
special
deals,
This
which
will
eliminate
have plagued
legitimate wineries and retailers in the past two years.
Producers who have maintained
quality and sound
mer¬
chandising programs must benefit from the elimination
of
the
for
sales
strongly to
so
crush
look
we
progress
for
turn
a
progress made in another
some
In order that the
lewis
Chairman
and
s.
rosenstiel
President,
Sclienley
the
better
promotion and
brands
a
of
whiskey
bid
it
of
good
quality
been
and
and
the
for
has
Whiskey
improved
is
packaging of the
other spirits are
consumer
under
much
expenditure.
less
pressure
the
supply of quality merchan¬
will be considerably reduced. In
recognition of this improvement in the supply situation
many distillers have advanced their prices modestly to
dise at
offset
distress prices
the
increased
which
cost
the
industry has been
absorbing over the recent years, and wherever possible
increased margins have been provided for wholesalers
and retail dealers also to compensate for their increased
costs.
-
*
These
things
picture all the
should
way
add
up
an
improved
profit
along the line.
United
States
liquor
industry
The continued decline in sales
result
to
in
increased
sales.
stands
to
today
on
halt last year
after six years, and a reasonable atmosphere on
legislation and regulatory policy will per¬
came
a
s
mit
the
the
more
industry to become
stable
one
industries
of
of
the
country.
All that is needed to assure
strong upward movement in sales
a
is
a
reduction of the
eral tax
burden
staggering Fed¬
and
the elimination
of the tax force-out
bonding limita¬
'
tion.
jThe Federal tax of $10.50 a gallon
is five times the cost of producing
and aging a gallon of spirits for eight
years.
thing
No other industry bears any¬
resembles such a heavy
that
to
was
Schenley
A reduction to
$9
gal¬
a
lon would provide a big sales boost.
Such a reduction is due the indus¬
try
1951
be
Korean War.
because
"temporary"
the
increase of
and
removed
$1.50 in
after
the
-
has
vigorously
opposed
the
tax
force-out
regulation for many years because this law seriously
handicaps the true U. S. distiller in competing With for¬
eign distillers who, with unlimited bonding time, market
their spirits only as a demand exists.
This country is the only one which limits the bond¬
ing time of spirits. The effect of the eight-year limita¬
tion
here
years
will be
more
than
to
force from
bond
in
the next three
50,000,000 gallons of spirits
in
excess
of any possible market demand.
The forced
of this
for distillers under the
liquor—the only
present law—will
to
the
distillers
mean
and
recourse
loss of
a
the
loss
of
more
more
than
than
destruction
$100,000,000
$500,000,000
in taxes to the Federal Government.
U[nited
is
reason
States has
problems
Particularly in our part of the country increased
population and high per capita income are expected
Inc.,
the threshold of better times.
There
to
Industries,
New York City
The
L. S. Rosenstiel
for
per
a
us.
again in the
whisky, at least re¬
gallon, and it is
peak of $9
the industry.
1957
prpfit picture at all levels of the industry/
strong
than
show
to
any
It is hoped
the tax is not paid until the whisky is withdrawn for use.
A change in this tax law will be of genuine benefit to
lilienthal
1956
and
making
which
to
a
beset
believe
far
the
that
the Congress of the
understanding of the
industry and that legislative
greater
relief will be forthcoming at the next session of
Congress.
A year ago the liquor
industry was uncertain whether
it would ever share in the nation's
prosperity as sales
had declined steadily from
thomas
,v
,
f.
President, Austin, Nichols & Co., Brooklyn, N. Y.
beginning of 1955 and again 1956,
the pattern in the wine and spirits industry has remained
basically unchanged.
The annual statements and the
interim statements of the firms in the industry have
the
that
nroved
mixed
trend
est
true
a year
the .bright¬
ago,
have
increased
in the years
**
What
volume
our
business
products,
does
sumer
decline
lieve
the
income.
in
Should
this industry
first
to
and
there
would
be
a
average
rather
drink
selection which, in many areas, is just starting.
(5)
Stabilization of brands in established type
be¬
be one of
wages,
I
American
than
eat.
and
price brackets.
suffer
because, in spite
of what the handful of fanatics say,
the
A continued trend to quality merchandise which
help the industry's financial position.
(4)
Continuing expansion of self-service and self-
will
high
salaries
are:
(3)
undoubtedly been
level of con¬
has
the
by
immediately ahead
The rise in the U. S. adult population.
An increase in "dining out" and a search for
(2)
entertainment away from home.
enjoy, in both domestic and import¬
helped
in
increasingly in favor
(1)
and Brandy.
pagnes
are
Other factors that should increase sales next
year and
import trade. Scotch whisky
sharply,
as
has the demand for imported Cham¬
ed
responsible for the upturn in the liquor business. The
spectacular rise in vodka sales and the solid increases
marked up for both gin and
brandy are? notable examples
of aggressive industry
merchandising.
packaging have also helped sales, and
as holiday gifts.
The
popularity of the decanter as a year-round gift should
grow and provide a further sales plus.
part of the industry still appears
to be the
sales
consumer
decanters
was
up
More aggressive
New trends
con¬
tinues.
As
1948 through 1954. However,
last year and continued higher in 1956.
industry merchandising and increased
purchase of luxury products were mainly
thev turned
McCarthy
As predicted at the
vertising and promotion programs and have upheld the
quality
will look
see
distiller-owned units were so
situation this vear, that their plants
managements
same
to
of; the largest
cf the wins
working
are
Improved
way.
wineries.
prices in the near future.
some
afraid
who
toward
some sources
industry in this country may
par with European producers, it is hoped that
something will be done about increasing the bonding
period on whisky. At present, the law requires that the
whisky be forced out of bond in eight years, meaning
that, the full tax must be paid at that time. In Europe
on
and
advertised
same
are
direction.
be
generations of consumers, so that our
also reap their rightful benefit from the
growth that our country is currently under¬
come.
in
Martin Lcfcort
v, :-
supply is ample to take
work,
turn it to its World War II
educational program
on an
government
billion dollars.
a
that at its next session Congress will do
something about
the excessive $10.50 per gallon tax on
forces for a concentrated
those forces that want to see the
remove
the
estimate the tax loss at half
coming
volume
all
at
stimulate
President, Haas Brothers, San Francisco, Calif.
factors indicate that by the time
the
1957 crush rolls around,
inventories will be far
lower than normal.
With the good old law of "Suoply
and" Demand"
to
strong action against this menace, although
which will continue for many, many years
It is not too late, yet, for us to crush those very
we
demand,
the
We
wrong.
current
current
,';V:
join
samuel
have produced less than is required
consumption.
year,
should
operating right at this
are
situation, the American public was
robbed of at least $400,000,000 in tax money last year. In
the meantime, a legitimate industry finds its
prosperity
continually handicapped by illegal competition.
The public in general is obviously not
sufficiently
tax burden.
The indications are that the
crush this year will be about 1,200,000 tons, which will
produce only about 110 million gallons rf wine, finished.
Inasmuch as the Government reports of tax-raid with¬
drawals indicate that the country is maintaining a nor¬
mal demand for about 120 million gallons annually,
and that this demand seems to be growing at about
maiority
should
make
the stills which
the
may
to
huge crop would be added to the bulging
of
We
should
going
ready signs that, as usual, at least in the wine business,
the
We
campaign to
forces
grapes
started
fifty-six
enemies.
are
of estimating how many
way
detection and
up
sum
a
industry
dynamic
the
Nineteen
To
the inter¬
year
for
wineries, much less
than necessary to take care of nor¬
mal
consumption
and
bulk wine
prices tripled the following year. '
going into
former
same—we
the
Thirdly: We should embark
the
with
fifty-seven should be
on
escaped
no
moment.
consumption of alcoholic beverages prohibited from the
scene, once and for all.
into the harvest,
unusually large
went
times,
at
in which all branches of the liquor industry
together in first: Settling our own internal squab¬
bling with the enactment of rules and regulations that
are fair and benefit the entire industry—not
just a few.
three years of
after
and,
work
down.
These are
picture for next
has
1956
While
grow
of great decisions
do
Secondly:
The
to
bickering
Nineteen
year.
resemblance to that of 1952.
bootleggers.
a
own
the
illegal stills seized by State and
hoped that there will be
external
the
liquor
Prohibition
many
against
as
the
seem
put¬
front.
great
a
not
state of open civil war in our
ranks.
even
Andre
City and
wine
the
we are
are
to grow weaker because of the
seems
constant
:,
of
There is
captured.
have
national front and will probably pro¬
duce
quite
a
few
new
alliances
Waterford, Calif.
up—production
consumption
industries
stronger
to year, tne liquor industry
from year
come
President, Chateau Martin Wines, Eastern Wine
two
united
a
are
forces
year
Corporation, New York
other
pulling
industry, such
party and the
distant future.
Waterford Winery,
the
forces
anywhere in the world. This statement will" be ac¬
knowledged by many millions of people in the not too
Wine
that
ting forth
public sample
lefcort
liquor
going to get because
product.
We are sure that, bottle for bottle, and
class for class, we can stand up
to those produced
martin
whole
industry will
probably enjoy the best Holiday Season in its history,
and yet, we may not be getting our share of the tre¬
our
the
the
are
interested
-
happens,
number
governments, and the total is an all time post¬
high of 23,714. This is up 800 from the previous year.
war
One must bear in mind that these
put it in
tures and
to
the
local
dealer.
To
this
to
,
satisfied customers and repeat sales for the wise
New
see
champagnes
own
consumer
clever
be well
of well
27
industry has is still the unrealistic and abnormally high
Federal tax. There has been no relief although
figures
show an accelerated increase in
bootlegging which is
having a stifling effect on the industry. It is the exces¬
sively high tax of $10.50 per gallon which makes boot¬
legging profitable and, therefore, possible.
According to the records, the number of stills actually
of
production. In the; last two years -we have
seen
the elimination of a large number of
marginal
producers,, both in the production and the distribution
sections of the business.
This is bound to be healthy.
the
charles
(2303)
The
,Thomas F.
McCarthy
would
not
The biggest problem which the
installation
of
self-selection
and
self-service
at
the retail level should help check rising operating costs.
Continued
on
page
28
Financial Chronicle
The Commercial and
!i3
The California Wine Indus¬
chandising and adverting.
Continued from page
27
clerks, restaurateurs, waiters and distributors'
salesmen; research projects in the field of wine eco¬
nomics, consumer taste preferences and consumer atti¬
keepers,
undertaken. A category of "premium" wines
the quality of which, as proven by many
comparison to imports, proved that
California's finer wine products are equal to the bes*
imports.
vT'
:,r>;"'v
£:■ 7: v
.\7
Similar efforts were made in the field of California
brandy where a new type of brandy,—not an imitation
of the imported brandies—was created. Today American
brandies outsell the imports by almost two and one-half
tudes, were
sprang
expected increase in the dollar
value of the individual purchase unit should combine to
feduce the number of industry business failures at the
atail
level.: '
.
\
levels of cur industry on
the outlook for business should make for a much greater
stabilization and halt the flight of capital which has
i»een particularly evident in recent years at the whole¬
sale level. Wholesaler profits have declined steadily lor
.the past several years due to the "wheeling and deal¬
ing" forced on distributors by the flood of distress
swhiskey.
This liquor, an offspring of the vicious tax
*orce-out law, has been offered at such low prices that
the market for established brands was in a completely
general optimism at all
The
the prewar years;
To those
generations
look back over many
V>randy, and who can
American wines auring
years—both in quality
^nd in- consumption in tne
united
States—has been a matter of deep
few
last
the his¬
wine making has
gone through three distinct periods.
AJp to the outbreak of World War I,
consumption rose rapidly. The qual¬
This
wines—originally hap¬
that
Since repeal 23 years ago,
these
of
development,
available.
of the true period of
in
business
as
far
sense,—technologically as far as
product is concerned, and marketing-
world's
population consists of 7%
States
but
population,
ally
ness
more
the enormous future
in the U. S. A.
--
heavy wine shipments in
after unexpectedly
When,
suddenly fell down, the in¬
determined to exploit the
4946, the wine consumption
search
by the
which
by
fcemendous
same
whole
other
progress.
wine
improvement of
of advanced market re¬
means
products
since
for
Jbe . industry
.
twoaod/one-half
of
was
grapes,
were
modernized with
aging and
factors.
more
many
birth
to
Brand -consciousness
stepped
up
the
of
Ohio
CLEVELAND,
W. Coffan is
now
—
that
connected "with
GRAND RAPIDS. Mich.
Stiver &
Building,
Philip E.
of the Midwest
Co.,
Petersen
was
of
Grand
Street,
H.
La
Tegtmeyer
Salle
&
Street.
Bank
of
a
now
BOSTON.
Brown
C. Gibson & Co.
10
Post
nas
Mass.
joined
stork
reaper
It
means
has
increases
effect
compound
for goods but
the
demand
even
illicit
gallon.
the
staff
no
The moonshiner
competition.
and
dealer much
the
Co., 75 Federal
in
ner
of
three
also
whose
sales
as
and
earnings
below
the
for
denote
let
taxes,
population
levels
Rather it should be
to
?nat general
has
joined
the
Pierce,
staff
purchasing
and
:
the firm's
Fenner &
the
Hotel
Embassy Room
Dec.
of the
Exchange Member
;
ST.
—
J.
acquired
a
Fla.
PETERSBURG,
Curtis
has
Merkel
Baltimore
Pollacchi
—
Industries,
Morrison.
membership
Mass.
invest¬
E.
(Special to The Financial Chronicle)
Atherton
in
in
club's roster to forty-three.
BOSTON,
Joins Schirmer,
The
luncheon to be held
a
With Palmer,
—
will be -guests of U. S.
4th
Frank
111.
Analysts Society of Chicago
Inc. at
—
ex¬
trend
Chicago Analysts
CHICAGO,
ment
have
must
power.
Quarter Century Club at a dinner
held at the New York
Athletic
members
condi¬
Meantime,if
of
Milk Street.
bev¬
years,,
business
we
em¬
distilled
be grateful for the upward
the Detroit
office,
Howard
M. - Hindes and
Leonard
J.
King — bring
the
G.
legal
of
us
Goodjpody & Co., welcomed
members
and
satisfactory
it.
senior part¬
Goodbody,
partner
-are
though improving, .is far below the peak
cessive
new
in population
evidence that the industry with-
consumption
the
that
far
tions
new
tfie rise
purchasing power;!,.
stands high excise tax easily.
in
Voorheis,
Robert
Mass.*—
His law¬
harder-than'it has but for two influ¬
mentioned:
already
rise
finds
of high
would hit the legal.distiller, distributor
enterprise
-
Federal
other industry does
rates, he expands his operations, he does well.
less
Marcus
E.
discriminatory
of
For
in year-after-year maintenance
With Goodbody 25 Years
Stanley
—
a
shock
full
in the Philadelphia-
Stock
Exchange,
an
Curtis Merkel Company, Inc., 601
Joseph
E.
Keegan
has
become
connected
with Palmer, Pollacchi & Co., 84
First
Avenue,
North becomes
a
exchange member firm.
State Street.
Planned Sees. Formed
—
the
cey
Square.
has
become
—
Paul J. Da-
associated
with
Schirmer, Atherton & Co., 50 Con¬
Eliot
C.
staff
of
Brothers Harriman &
Office
the
grim
have saved the distilled spirits in¬
power
encouragement
S. A.
(Special to The Financial Chronicle)
With Brown Bros.
formerly for many years with W.
BOSTON,
Lynch,
Clarice
that
the
create
tax
a
erages,
(SpecialTo-The Financial Chronicle)
BOSTON, Mass.
39
The difference
$10.50
excise,
con¬
The
Myers Building.
was
purchasing
from
wine
*
With Merrill Lynch
18
111.—Robert C.
affiliated
Victor A. Uhl & Company,
that
the
importance.
Club.
Beane,
become
it.
payroll
dustry
phasized
|
Merrill
with
makes
Distillers
SPRINGFIELD,
with
Co.,
He
Street.
Victor Uhl Adds
has
of
Chi¬
(Special to The Financial Chronicle)
Wm.
Mass.
of W. E. Hutton &
New York
Exchanges.
formerly an
Kent
than
not only increases the demand
Should not be cited
Hutton Adds
(Special to The Financial Chronicle)
CHICAGO, 111.—Harry W. Tay¬
South
to
has been added to
Pratt
Parker
Ter-
✓Special to The Financial Chronicle)
associated
Her¬
fact
The
units
economic
prime
of
.
this country is made in the U.
BOSTON,
Rapids.
Stock Exchange.
become
Old
the
officer
members
Joins Tegtmeyer Staff
has
Salle
La
Stock
Campbell
lor
..
members of the
Midwest
Mr.
♦limer has been added to the staff
Tower
in
asso¬
certain.
less
statistical
Only the growth in adult population and the growth
in
remarkable is that the
accustomed
more
Glore, Forgan & Co.,
and
(Special to The Financial Chronicle)
Saunders,
with
South
cago,
Saunders Stiver Adds
—
H. Petersen has become
man
135
—
•„
W. E
ciated
Cuclid Building.
CLEVELAND, Ohio
.
Glore, Fcrgan & Co.
♦loss, Borton & Co., Inc., The 1010
Perhaps it is
points out that history shows
people stride into the market place than are
out
carried
,
✓Special to The Financial Chronicle)
is
more
ences
(Special to The Financial Chronicle)
Charles'
for
demands
WALTON
R.
someone
no
more
collects
as a
times
.
more
consumed
be
delivers
also
H. H. Petersen Joins
With Ross, Borton
tninal
was
through advanced methods of promotion, mer¬
(Special to The Financial Chronicle)
of
public
that
time
drinking at meals they .instinctively
Fred C.
layicr
search for quality. That the Ameri¬
can
palate is finding the quality it
seeks is evidenced by the sales record: 95% of the wine
especially created-to please the American palate—were
developed.
their
in
re¬
Americans focus
lot about death and taxes.
a
about
Happily for the prognosis of the
quality wine market,* as people be¬
come
superior quality
on
in other
place
As
Walkerville, Ontario
;; We hear
II.
Packages
wine districts.
and
further.
'
New wine types—
vigor.
new
a
7; :.:
more
wine
business
has quad¬
rupled since the end of World War
intensified on all levels of
When
President, Iliram Walker-Gooderham & Worts, Ltd.,
quality
production through scientific research, selection of better
wine
1940.
Even
their
have achieved
First of all, the work of quality
wines and champagne
taking
are
HOWARD
Wine
•
wine field
the
on
are
business
in
year
assistants.
his able
as
.
dustry took a look around and
the Ameri¬
as
Nature, science, generations of experience and integrity
TAYLOR
growing wine consciousness has reached
sumption level of almost 150 million
gallons per year—about a gallon per
person. This is not a startling figure
for the richest, and one of the largest
nations on earth, b/qt.it is remark¬
able in that it reprgsen-ts a growth
This
average.
well
quality vintner stands ready to serve—with
the
because it
Our
potential of the wine busi¬
a
was
is completed the Taylor Wine Company,
grape
wine,
the
in
before
this country, in the
the world's
far above
standard
a
-shows
C.
So nature, as
developments
clearly
more
not only drinking more wine than ever
country's history, but they are becoming
discriminating in their taste for quality wines.
Americans
average
life's nicer comforts, has gener¬
of enjoyment of
*ealm
to the
up
us
capita world consumption; yet
$3er
-
bring
not yet
would
sumption
gional
President, The Taylor Wine Co., Inc.
doubling of our wine con¬
That means that even
tion.
FRED
today wine consumption
even
the total world wine consump¬
-accounts for only 3% of
production
Taylor
quality wine, is smiling this
District.
Similar
1
.
the-
on
Inc., will have the largest storage capacity in the Finger
Lakes
California wine—gives the consumer the
luxury,
living.
of the
practically
crush by running throughout the
the
double shift.
this expansion
try, and, last but not least, to add to the enjoyment of
United
The
note
Further plant expansion in still
consumption of wine, to help the economy of the coun¬
is involved.
taste for
complete
a
testified by the awards
as
in
storage is under construction at the present time.
able, within the next few years, to further increase the
merchandising
the employment of modern
as
wines and
Finger Lakes District of New York State.
yet the price tag on a bottle of good wine is so moderate
that it is within the reach of practically everybody. This
is an ideal combination.
With hard work we will be
ascendancy of the wine and brandy
to
on
can
satisfaction of enjoyment and the glamour of a
modern
a
the
of
quality
wise
position of quality
that
program
a
gifts
business
as
historical
another
products will come out on top as proven by the
Wine—good
W. Sichel
Franz
shortage of wine
Since 1946, we can speak
the increase due to
is
Fall
lullest confidence
given to The Brothers' wines at the 1956 Official
Judgings, where The
Christian Brothers won
awards than any other winery.
period
temporarily halted
delivered
able
challeng¬
campaign, under the slogan TASTE! is a
leading
with
wrappings and
record-breaking tonnage of quality grapes.
incor¬
Brothers' Wines and Brandy, we have
Brothers' Wines and Brandy, have the
it today, was little known.
The war years, the second
gift
we are
advertising,
The grape crush was completed on Nov. 3 with
side.
and
our
At Taylor,
nationwide
with
fact
with the cooperation of local dealers.
state
There
looking forward to a tremen¬
and buy several
wines, compare them and satisfy his own taste as to
what he likes best. We, the distributors of The Christian
indifferent — was im¬
Brand-building, as we know
proved.
we are
ing invitation to the consumer to go out
and
hazard
colorful
every
porated this idea that it is the customer who has to find
out what he likes best—not the advertiser to tell him.
tory of American
this
on
champagnes
means
Christian
gratification^
ity of
wine and
the
of
of
upsurge
the
capitalizing
with
to
quality wines and champagnes for home service
gift giving during the holidays.
and
people. We have to find out what wines and
brandy people like in this country.
In a
recent extensive advertising program of The
the
devoting their lives to the same purpose,
of ancestors
sales records have shown that consumers turn
Past
better
merchandising. Wine as a daily beverage
of daily enjoyment is still little known to
the average American, if we consider that an estimated
85% of the wine consumption is copsurned by only 15%
a
acceptance
the country.
increase. After all, the per
consumption in the United States still is
duction
and
and
awareness
advertising and public relations programs.
capita ofwine
below one
gallon against about 30 gallons in France.
We will
achieve this goal by creating an American wine business
in accordance with the American taste, and by means of
th^ superior American know-how in the field of pro¬
City
of us whose lives have been shaped by the
the grape and its noble products, wine and
-destiny of
through nationwide
In the mean¬
time, they have been planning expansion to meet the
expected demand. At the Taylor Winery in Hammondsport, N. Y., for example, we are experiencing the largest
shipment of our wines and champagnes in the history of
create
additional
dous
Sichel, Inc., New York
President, Fromm and
within
brandy business is tremendous.
We are not satisfied
that today's consumption has doubled as compared with
SICHEL
W.
potential and future of the California
The
come
enables business organizations to have Taylor
times to one.
shaotic condition.
FRANZ
up,
blindfold tastings in
and the
This reduction
in order to educate store¬
Advisory Board of California,
in
Indssiries
liquor and Wine
on
upsurge in the demand for quality wine did not
unexpectedly. Individual vintners and associations
the industry have been doing their utmost to
This
:
Tfn extensive educational program,
under the leadership of the Wine Institute and the Wine
embarked
try
Tiends and Prospects
•
Thursday, November 29,1956
..
.
(2304)
Co.,
gress
York
Street, members of the New
and-
changes.
Boston
Stock
Ex¬
With Lyman
Phillips
ENGLEWOOD.
(Special to The Financial Chronicle)
BOSTON,
Williams
with
pany,
has
Mass.
—
Willis
become
Lyman W. Phillips
E.
affiliated
& Com¬
199 Washington Street.
N. J.
curities
Palisade
with
offices
Avenue
to
securities business.
,
—
Sidney
Sprague has formed Planned Se¬
.
at
15
engage
'
West
in
Volume
184
Number 5590
.
.
Financial Chronicle
The Commercial and
.
Continued, from
page 4
(2305)
decline
was
concentrated in small casualties with liabilities under
$5,000, which fell to 15 from 56 last week and 31
The State of Trade and
Twenty-three
tankers
under
are
Industry
construction
or
present.
The.SV1ez ?risis wiU
be
•it
will
ages
in
tions
make certain that
built, it added.
heavy demand
The
many
at
at least half the vessels
structural
shapes,
fabricating shops.
The
publication said
structural steel. So-called
to
discount
too,
spells
short-'
instances, their
talk
of
a
opera¬
market
gray
premium prices reportedly paid in
in
some
turned out to be the difference
between mill and warehouse
quotations.
areas
Other steel products
give promise of being in good
demand,
perhaps stepping up somewhat. One
deterrent to buying will soon
be out of the
way and that is the year-end
Level
level
$6.02
the books were sufficient to
keep mills working at
capacity in the week ended Nov. 25.
They pro¬
duced 2,474,202 net tons of
steel for ingots and
castings for the
second consecutive week.
to
reflect optimism
over steel
produc¬
"Steel's" price composite
steelmaking scrap set a record. It registered $62 a
gross ton
lor the week ended
Nov. 21, a 50-cent increase over
that of the
preceding week. ;*
Because of the international
crisis, there mav be renewed
agitation to limit iron and steel scrap
exports, even though there
is no danger of a pinch on
domestic supplies.
Shipments abroad
this year will total about
5,000,000 gross tons, compared with
4,500,000 last year.
For the -second
consecutive
week,
,
For the first eight months of
1956, Japan has taken over No. 1
leading customers, Italy and the United
Kingdom.
It has imported 989,938
gross tons of United
States
scrap, Italy,
676,127; Canada, 387,028 and the United Kingdom.
367,481.
from
In
posite
last
year's
the week
ended
Nov. 21
"Steel's"
arithmetical price
finished steel remained at $137.66 a net
ton.
on
The
American
Iron and
Steel
Institute
announced
com¬
that
the
operating rate of steel companies having 96.1
% of the steelmaking
capacity for the entire industry will be an
of
average
of
capacity
2,469,000
for
tons
the
of
week
ingot
beginning Nov. 26,
and
steel
for
1956,
castings
The
and 2,463,000 tons (revised)
Thanksgiving holiday.
the
industry's
is based
annual
on
ingot
duction
a
2,493,000 tons.
month ago the
A
a
The
of 31
or
.Electric Output Cut In
the
weeks
in
of Jan.
as
1956
1, 1956.
was
and power
Thanksgiving Holiday Week
industry for the
week
estimated at 11,439,000.000
ended Nov. 17,
1956,
was
tion is to
ended
kwh.,
a
Saturdav, Nov. 24, 1956,
decrease
below the week
according to the Edison Electric Institute.
The past week's output fell
150,000,000 kwh. below that of the
previous week; it increased 712,000,000 kwh, or
6.6% above the
comparable 1955 week and
in 1954.
:5
r;.;
-?,
.
-
Car
the
2,352,000,000 kwh.
v. Vr
over
the like week
•
Loadings in Veterans' Day Week Ended
Nov.
and compares with
increase of 1.3%.
an
preceding week, which included Election Day, the Association
of American
Railroads reports.''
Loadings for the week ended
decrease
1955 week but
of
an
2,340
cars
or
Nov.
0.3%
17,
1.956,
below
totaled
the
763,876
corresponding
increase of 66,530 cars, or 9.5% above the
sponding week in 1954.
corre¬
328,723 shares of the
Car
The
ohtput for the
included
motive
the
latest week
ended
Nov.
ceeds
Commodity Prices Influenced By The
100
Grain
with
markets
irregular
in
ments
tied
the
were
price
Middle
East
shipping at
up
and
nervous
movements
the
and
Atlantic
unsettled
reflecting
past
day
wheat
A
area.
for
strike
time.
Corn
erately
the
1957
seasonally lower.
were
traders took
as
last
receipts
bearish
a
of
out
view
of
which
Chicago
share,
against 40,000,000 bushels
world
net
national
to
prices
the
over
house
a
dock
the
cover
stocks
down
were
strike
needs
as
of
Th«re
were
manufacturers
little
was
considered
for
by
„
seasonally large receipts and weakness in wholesale pork.
and sheep prices were also lower for the week.
Cotton prices were generally steady to "firm the
past week
Last week
the
next
crop
Domestic
under the soil
season
cotton
consumption
in
the
bank
the
expectation of
week
-
United
and
States.
22,344
a
year
*
ago.
was
placed at 8,200
cars
:
I
and
2,002
trucks.
In the previous week Dominion
plants built 8,282 cars
and 1,977 trucks and for the
comparable 1955 week 6,327 cars and
819 trucks.
Business Failures Ease in
Commercial
and
industrial
office
failures
declined
to
207
in
preceding week, Dun & Bradstreet, Inc., reports. The toll in the week shortened by Thanks¬
giving was the lowest since Sept. 13, but it remained
slightly
above the 205 in the
comparable week last year. However, failures
\yere less numerous than in 1954 when 226 occurred and were
18% below the prewar level of 252 in 1939.
Failures involving liabilities of $5,000 or more rose to 192
from 184 a week ago and 174 in the
similar week of 1955. Twentyone
as
of
the
against
failing businesses had liabilities iu
11
in
the
previous week.
All
of
excess
the
of
holiday
$100,000
week's
the
Thayer
direction
of
:;
Miller,
October
:
;/h
Co.
&
'■■rh
*
F. P. Ristine Branch
RED
pe¬
Buildingr
George V/.
fice
BANK, N. J.—F. P. Ristin"
have
39
at
der
opened
East
branch
a
Front
the management
Exports of cotton for the August-September period this season,
according to the Census Bureau, totaled 928,000 bales, the largest
any similar two-month period since 1S33.
Isaacs
of¬
Street
un¬
of Lester R.
Ross and Harry A.
for
Trade Volume Stimulated In Latest Week
the
By
Isaacs, Jr. M
formerly manager of
was
River
Toms
been
office
which
has
closed.
With John G. Kinnard
Christmas Sales Promotions
(Special to The Financial Chronicle)
Consumer
numerous
primarily
retail
buying was somewhat encouraged last week by
early Christmas sales promotions.
Interest centered
on
women's apparel, gifts and food products.
Total
volume
moderately
that
exceeded
of
a
year
ago.
total
dollar
volume
of
retail
trade
in
the
MINNEAPOLIS, Minn.
Mocscelt, i?
nard
Pacific
New
and
Coast
England
—2
Southwest
to
0
to
In
while
total
for
volume
declined
The
of
the
gifts,
in
sales
toys
promotions,
and
some
lines
buyers
of
ROCHESTER, Minn.
Vr;
-
volume
wholesale
of
erately above that of a year
Department store sales on
orders
in¬
house¬
Zuehlke
of
Ihe
3%
week,
four
Nov.
weeks
For
the
registered
was
Retail
10,
country-wide basis
as
taken from
decrease of 3% was reported.
an increase of 1% was
1956 to Nov. 17, 1S56, a gain of
a
Nov.
37, 1956,
period Jan.
1,
that of
above
like
week
a
year
ago,
according
to
rose
trade
preceding week Nov. 10, 1956,
recorded.
1%
was
the
index
period
For
the
registered.
in
recorded
1955.
four
For
a
weeks
a
is
Mortgage
George W.
—
now
with
State
Company,
2#
North Minnesota Street, North.
Joins
1
to
decrease ol 8%
Dempsey-Tegeler
LOUS, Mo.
—
John F. Koch
has become affiliated with Demp¬
sey-Tegeler & Co., 10th and Lo¬
cust Streets, members of the New
York
Midwest
and
changes.
He
Reinholdt
&
& Sons,
Stock
formerly
was
Gardner
and
Ex¬
with
Albert.
Inc.
With Stifel Nicolaus
3% above
(Special to The Financial Chronicle)
(revised)
was
ending Nov. 37, 1956, a decline of
1, 1956 to Nov. 17, 1956
above that of the corresponding
ST.
has
LOUIS, Mo.—J. Scott Scolt-
Stifel,
Incorpo¬
rated, 314 North Broadway, mem¬
joined
Nicolaus
bers
of
the
&
the
of
staff
Company,
Midwest
Stock
Ex¬
the period Jan.
rise
of 4%
1
(Special to The Financial Chronicle)
observers.
According to the Federal Reserve Board's index, department
store sale in New York City for the weekly period ended Nov. 17,
1956, increased 10% above those of the like period last year. In
the
First
the past week, spurred
by cooler weather at the close of the period
the
Sr,
&
Theis
1955.
in New York City
ULM, Minn.
Pilgram
ST.
ago.
a
1956,
ended
trade volume
Paul V/.
214
(Special to The Financial Chronicle)
NEW
mod¬
Federal Reserve Board's index for the week ended Nov. 17,
1956, advanced 7% above those of the like period last year. In the
preceding
&
Grieve,
Avenue, Southwest.
<
continued
the
For
—
„Daly has been added to the staff
women's
textile^, major appliances and
somewhat.
dollar
Seventh
With Zuehlke & Grieve
Bond
preceding week.,
Christmas
for
their" orders
apparel,
level
the
South
With State Bond & Mtg.
4-4%.
preparation
creased
wares
at
133
ended
Responding
continued
Co.,
(Special to The Financial Chronicle)
period
-4-2; East 4-2 to 4-6; South,
4-5; Northwest —1 to —3 and
4-1 to
&
John
—
with John G. Kin¬
now
Street.
Automobile dealers reported a noticeable rise in sales of 1957
models and inventories of new passenger cars were at the lowest
level since December 1954.
the
week ended Nov. 22 from 240 in the
in
under the
:
program.
four-week
daily rate basis, consumption last month averaged 36,600
in September and 36,900 in October last year.
recorded.
Thanksgiving Holiday Week
Cooley Branch
bales against 32,900
the agency reported there were
Canadian output last week
New
-
a
riod, according to the Bureau of the Census, totaled 733,000 bales
as
compared with 737,000 bales in the like period last year.
car
17,723 trucks made
This compared with
21,510 in the previous
$201,719,000 and
$8,026,000, or $1.67
with constructive sentiment aided by the
very large sales reported
ucts
in
was
of
1955
NORWICH, Conn. —Cooley &
Company have opened a branch
Cattle
a
period
California, passed away 00
Saturday, November 17, 1956. Mr.
Livingstone was formerly head o?
Livingstone & Company.
Ware¬
week's
output fell below that of the previous week
by 8,620 cars, while truck output declined by
3,787 vehicles during
the week.
In the
corresponding week last year 151,799 cars and
22,144 trucks were assembled.
similar
Alto,
sufficient
favorably
to
Thanksgiving sales promotions,
housewives stepped-up their buying of poultry, fresh meat, canned
goods, candy and baked goods last week. Volume in dairy prod¬
Last week's
the
share.
ago
On
4,816,21#
on
of
cocoa
declined to 319,512 bags from 325,672 a
and compared with 257,153 bags at this time last year.
Lard prices again rose sharply, aided
by continued strength in
vegetable oils. Live hog prices were moderately lower influenced
week
nine*
Willard H. Livingstone, of Palo
concern
time.
some
the
Willard H. Livingstone
year ago.
slightly.
supplies
in
share,
were
net income
unsettlement.
Cocoa
felt
an
company'J
For the calendar year
sales
per
market continued active with prices rising
improving statistical position and the inter-<
sugar
sharply, aided by
sales
per
in
1955.
that
price Would be $1.36, or 14 cents lower than
Trading in grain and soybean futures on the Chicago
Board ol Trade showed little
change with daily average purchases
for the current and
preceding weeks totaling about 66,000,000
as
the
income of $7,963,000, or $1.65 per
support
The
net
$1.94
or
year.
bushels
of
shares outstanding. This compare.*
with sales of $158,811,000 and net
bound
announcement
84%
$169,027,000 and net income after
provision for taxes was $9,329,000
has
Prices declined mod¬
the
Beer sales in 1955 accounted
about
months ended Sept. 30, 1956 were
said to be taking place at the present
was
founded over
brews Anheuser
ago,
net sales.
ports.
large movement of wheat:
for eastern destinations
years
area.
week
compared with 135,641 (revised) in the
previous week. The past
week's production total of cars and trucks
amounted to 144,744
units, or a decrease of 12,407 units behind that of the
output, states "Ward's."
pro¬
the sale.
from
beer, Busch Bavarian, is currently
being tested in a limited market
Wheat showed marked strength at
mid-week, aided by active
export demand and lack of subsoil moisture in much of the Winter
Middlewest
preceding
com¬
Michelob beers, and produce#
yeast, corn products and refrig¬
erated cabinets. A new brand o?
develop¬
percentages:
cars,
represents the total
the Estate of Edmet
of
Total
the
to
waterfront
Gulf
and
day
which
Reports," declined below that of the previous week.
week the industry assembled an estimated
127.021
ni
and
Wednesday of last week was 1 to 5% higher than a year ago,
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1955 levels
by the following
Last
stock
Greenough, deceased. The
pany
will not receive any
prices at the wholesale
Auto¬
1956,
"Ward's
stock
share.
B.
The general level of prices continued to
move
higher last
week, reflecting continued uncertainties in the international po¬
litical situation.
The
daily wholesale commodity price index,
compiled by Dun & Bradstreet, Inc., rose to 298.23 on Nov.
20,
from 296.43 a week earlier and
compared with 274.97 on the cor¬
responding date a year ago.
•
The
23,
Thanksgiving holidav, according to
brewer's $4
common
per
holdings
Higher Ground Last Week
%
Output Declines In Thanksgiving Holiday Week
value
par
on
U. S. Car
stock of
$18.62 V2
International Political Situation Moved Into
,
a
general trend of food
secondary
Anheuser-Busch,
Wholesale
17,
Loadings of revenue freight for the week ended Nov.
17, 1956,
which included Veterans'
Day, decreased 8,885 cars or 1.2% below
cars,
earlier,
a year ago, or
level.
-Fell 1.2% Under Prior Week
the
week
a
represents the sum total of the price per pound
foodstuffs and meats in general use and its chief func¬
show
reduced
by the electric light
•;
.
$6.01
by the CCC under the export program and
The amount of electric
energy distributed
.
from
up
index
raw
here
for
rate
week ago, which
comparable because capacity is higher than
capacity in 1955. The
percentage figures for 1955 are based on annual
capacity of 125,828,310 tons as of Jan. 1, 1955. ••••'.
<
distribution
ol
Anheuser-Busch,,
Inc. is being made today (Nov. 29)
with
the public offering by Lee
Higginson Corp. and associates of.
and steers.
eggs
with
101.3% and pro¬
ago the actual weekly production
97.6%. The operating rate is not
year
placed at 2,356,000 tons
was
rate
capacity of 128,363,090 tons
For the like week
5-
production
100.3%
equivalent to
compared
as
100.1% of capacity,
included
A
common
on
on
spot
is
Higginson Offers
Anheuser-Busch SIoce
Sharply To Highest
12, 1956
Since June
the corresponding date
on
of rated
Scrap prices continue
tion.
Rose
Moving upward in price the past week were wheat, oats,
barley, beef, hams, bellies, lard, butter, sugar, coffee, cottonseed
oil, raisins, hogs and lambs. Lower were flour, corn,
rye, cocoa,
property-inventory
Orders
Lee
ago.
year
sharp rise in the Dun & Bradstreet wholesale food
price index last week brought the Nov. 20
figure to $6.10, the
highest it has been since June 12 when it stood at $6.14. The cur¬
taxes in some states that
influence people to get their stocks down
low by the close of the
year.
100.5%
Price Index
a
Another
rent
for
In many
limited to the material
available.
are
order
on
Wholesale Food
m
change. He
was
statf Bond
&
formerly with the-
Mortgage Company.
30
The Commercial and Financial Chronicle
(2306)
Continued
from
and influences that
longish"
trend
in
components
5
page
"the
supply.
money
In
$414
a
.
all
billion
Thursday, November 29,1956
.
.
in
and credit matters. Credit
poiicy can be an effective device
by which inflationary surges can
pendence
sometimes
to make
be
Were
money
Wider Federal Reserve Policies
For More Effective Influence
be
would
The
offered
enlarged.
would
in¬
relative cost of
crease.
The
capital
versus
in
stocks
on
therefore
market
earnings
of
appreciably
returns
the
level
borrowed
risk
capital
would decrease.
dition
that
should
approval of the majority of fairminded
people; those who
terested
in
future
the
the present—for
children,
in¬
are
well
as
as
themselves, their
their
children's
and
this score,
On
the
with
meet
the
you
already
vastly different set of
problems than those that now con¬
front us.
True, some complica¬
another
tions
would
be
thinking
present
tion finance.
would
have
to
into
corpora¬
not think these
be
I am
sure,
be
surmounted
with
nection
the
in
con¬
conduct
of
monetary and Reserve credit poli¬
cies, would undergo considerable
change.
might find
We
saving
too
of
much,
that
in
we
were
the
strict
word, and investing
too little.
Clearly, the impacts of taxation
bear importantly on the problems
of monetary and credit policies.
various
to such
of
parts
component
Taxation
has
our
been
amply
here.
purposes
On the matter of the creoit and
price
activities
support
of
the
Federal Government and its agen¬
cies:
Let's skip the support of
prices and crop lending pro¬
grams. By and large, the rest has
crop
been pretty much, although
not
entirely,
a
one-way
street.
In
housing, mortgage, and farm
credit
the Federal Government
—
has seemed
to ignore,
at times,
the over-all economic environment
this
has
called
credit
for
restraint by the Reserve, I recog¬
nize there is another side; one that
on
Monetary Policy
Another part of monetary policy
might be the credit and price sup¬
be
can
made
plausible, but plau¬
should
not
be
enough
sibility
port activities of the Federal Gov¬
when
ernment
privilege under the guise of ad¬
ministering a control. At the same
and
include
its
the
These
agencies.
conglomeration
that
it
to
serves
produce special
in¬
cluded, too, and maybe the Small
This
say,
credit, also farm credit. The
support and
crop
lending
crop
perhaps
programs
The
results
budget
In
matter
will
must
be
in
Federal
to
need
be
in¬
cover
finance
deficit
a
position to retire
debt. I think we
a
publicly-held
should
the
be
this area, there is the
whether and when the
of
Treasury
or
in
certainly
cluded.
should
in
here
those
Fed¬
in effect, "If you don't do tMs
that
we are going to vote
and
—
for someone who will!"
The
results
in
the
Federal
cash
surplus during the calendar
1.956.
During 1957, we also
year
develooments
concerns
our
the
Since
end
of
World
the
finance
companies, credit
unions,
and
have
important
other
syich
become
increasingly
the commercial and savings banks,
insurance
companies, have
and
participated somewhat less, rela¬
tively, in total lending.
come
more
fluence
of
Reserve
than the first.
This
longer and it is
the
influence
pervade
to say
credit
difficult for
the
Reserve
sectors:
take
control
have
should create.
not
and
kept
which
credit
the
a1!
the
control
Program
for
Effective
might move, to improve
quality and effectiveness, of
over
should
include
One,
reduce
the
LoHnr
better
...
conform
of
ties of the debt.
a
matter
This is not simply
of funding
near-dated
long. The banking and
debt into
credit system is geared
ordinary
certain
functioning
amout of
for liquidity.
so
that its
requires
near-dated
a
debt
Moreover, if Treas¬
exoenditures are to be held
lower than receipts,
adequate pro¬
vision must be made
ury
whereby the
Treasury can readily retire pub¬
licly-held
debt.
Such
arrange¬
ments, also, are necessary in con¬
nection
with
meeting
the
investment
requirements of the
various trust and agency accounts
of the government, as these are
set up.
4
rtfn
c*
no
least,
mca^s
Dr\c«riit*T«
there is Reserve credit
policy.
In
order'words,
least,
five
influences
price
which
support
Federal
there
are,
at
or
It
it
obstructive.
This
activities
the
of
and
the
condi¬
credit operations.
safe
a
to
say,
the
In
two
respects,
management
been
not
have
as
been.
secret
like
accede
to
It
required
has
the
Reserve's
the
wishes.
Reserve
accept Treasury certificates.
I
believe,
our
create and maintain
a
credit
con-
ently
the
the
Board
it
it
mote and to
The
should
encourage
pro¬
of
reference
of
First
not
all,
someone
has
to
each such
be
Reliant
self-reliant
A
defined.
was
wherein
It
financial
funds
aimed.
But,
market
or to
criminations?
one
either,
it
al¬
bound,
in
are
selective,
the
select
to
points
economic
realize
I
sense.
tough task, eycept
info*rned
that
is
the people
as
fully
mo^e
the ramifications that
on
-
Two, transfer the responsibility
the direction and administra¬
for
of
the
credit
Branca
activities
now
under the Execu-
tee
Government
the Federal Reserve.
Three, consider
of
the
ways and means
that
of Federal
amount
are
coRected,
as
change
these
are
to
be
special credit
impose credit dis¬
When
we
impose
to
to
seems
are
we
me
have
done
administer
such
effect,
special privileges and discrimina¬
tions?
You do it by government
offers
commensurate
needs,
desires, and the types of
they wish to sell, and
taxes
rates of taxation
such
as
by
lenders bid at rates and
discernible
change
grant
margin,
underlying
economic conditions.
to
Four,
the
with-
staie-
helpers;
one
I
Rcs'Jerve
think
we
constitute its
implement, then
the following
can
the
public
on
and
are
who^
be.
and
sales
not
contingent
yields
hibited.
are
of
be
ant^or-
government
insures
of
disturbance
of
available
made
in
a
the
to
choice
of
selective
enterprise would be in¬
That
patently,
another
is
purpose
job efficiency would
be
impractical
grossly unpalat%
would
and, eventually,
able.
One rebuttal to what I have said
might
be
have
minimum
allocations
are
freedoms
require rationing from the too to
the bottom of the economy. This,
securities.
that
funds
and cannot uo
selective control.
a
To do the
upon
the market prices and
of
have
tell individ¬
The exercise of individual initi¬
These purchases and sales are
in a sector of the market
on
wnat tiiey can
ative and
buyers might
or
would
These
control.
the basis of the best price
the sellers
en¬
whole host of dynasties
That is the purpose of a
institutions,
when
the
Reserve
makes its purchases and sales. The
Reserve's purchases
a
ensue.
Individual
its
and
and
of
lieutenants.
require assistants and
army
would be cRrectly impinged uoon.
stands between the
—
and
I
—in detail.
icy is made effective: A group of
private firms — government secu¬
Reserve
require
envision
as
main purpose; To
uals
say
about the way Reserve credit pol¬
rity dealers
would
entrenching,
will
These
would
important
This
what
an
tions of the
most
of
'
trenched
ment that the open market opera-
selective control
a
margins that
seems
well?"
being
this, and in other credit
answer,
The
don't
ask—"But
to
over
we
stock
to work pretty
believe,
I
is
It
markets. Such allocations of avail¬
that
able^ funds
hapoens to be among the kind that
is the more simple to administer.
that
sonal
Treasury
earlier
my
host
presumably^ in
dictums,
Panjandrums, big and small. Each
must have, or is likely to end up
their judgments of the credit and
other risks and pertinent factors.
you
detail.
a
terms
appropriate to the funds held by
them,
and,
commensurate
-with
If
or
some
made
some
in
on
you
fiats,
wherein they have the least direct
re¬
marked. cl°a^ly
some
their
securities
the
10%, to be used only in
t^e event of
with
do
How
described somewhat
was
business
and
are
can
the
most
imper¬
possibly be made.
I
Such
arrangements and ^ro^esses
not involve telling individuals,
their
institutions, what they
have
we
such
inject
might
control.
a
that
it
has
been
or
them,
can
issues
things leave each individual free
up-surges in borrowings to
purchase stocks. Therefore, it may
reouests; oroviding, of course, these are of a tyoe
to
be said it has worked.
the
Treasury
his
sue
to
4 4-
to
-I
it
1^ T
n
is
on
i.
_
r>
_
to
view
±
and
and
active
money
has
been
issue
bills
hep"
unwilRng
made. aU-nost
market
except
when
prefers
to
and
mwnc,iim
In«rlY
entuely
,
would
,
,
,
xt
*
redit Policy Not
believe
recall
it
with
that
to
be
1
by
,
The
better
if
-
the
,
n
„
Reserve credit
share
has
?Prt at<?d debt were
bill form.
r_nj;i
nle
to
Treasury
develooed
,
•
in
The
certificates.
use
market
fostered
this
oMig^tory
conditions.
Cure-All
a
policy: Most
to
have
been
extraordinary
view.
your
But,
mind
are
set up
-
sucb tyno
**
L
the
as
go
that
hac
would
credit
by the other
aut>n"Wea
is¬
to
re-exa^inaticm
urged
financial leaders^
Nov/,
I
would
do
and
lend
of
to,
as
to
talk
to
operations.
consist
sales
of
the
of its
Reserve
As
largely
of
of
and
he chooses.
to
concepts
basic
you
of
Govern-
wents
an
to
curities.
a
stocks.
of
the
basis
uoon
whi°h
the
reserve
banking system.
are.
of
course,
the
the. commercial
banks may expand credit and the
on
top of
ble
to
avoid the
abuses
which
at
this control aims by other methods;
ones
with
that might be more consistent
the
basic
concepts
I
have
If 1 am wrong in this,
ha^e that,
tomorrow, this country will con¬ then I'd glacly settle for such a
tinue
to
produce
an
enviable, .single exception to the basic con¬
unmatched
record
of
eronomic cepts
to which my thinking is
mentioned.
best guarantees we can
achievement:
that
the
wedded.
individual
he
balances
These balances
raised to apply it to all
Yet, I believe it would be possi¬
manner,
and
from
incrimi¬
another.
will continue to be able to be free
_
/
That is precisely the way
such controls build—one
degree,
wuich this
Th° Fed¬
through the regular dealers.
The primary purpose w to add to
subtract
So,
the cry w
System, functioning
is one of the
Reserve
such
It
against listed se¬
frdm time to time,
nates, however,
amazing
on
This control has prevented
of
All to1r\ there¬
parallels,
responsibility of the Re¬
a
wild
tb^se
to use »11
enterprise
country has been built.
in
credit policy objectives:
AR
fore, the conduct of cvedit poRcy
by the Federal Reserve Svstem
eral
and
and
the
by eminent
like
Reserve for the effectuation
these
them,
initiative
strument at the disoosal
market
do.
compete for borrowed funds, or
to
you about the most imnortant In-
0!>en
cannot
made
serve.
accomplish either purpose, or not
ahead with the sort of
hppr,
purchases
I
■
"
b°nkmg and credit machinery
cPo-
that
is
non-partisan
know,
skill,
tvo°-s of
I
A
the general rmblie,
Five,
our
or
Reserve
peo-
policy, whether conducted by the
Reserve
or
through some other
medium, cannot overpower the
forces that
•»
onlv
i
foster
broad
a
«.!«...
—
common
desirable
develop
the public
o
a
.
both.
made
introducing greater flexibility
into
■
device would
to. confer
privileges,
said to be
was
which
designed
Market
available
be¬
may
be
to
to the government secu¬
rities market per se, but to finan¬
was
us
have referred.
which I
to
self-reliant
The
markets.
the
to
selective '
of
area
some
This can be.
avoided, I believe, by comparing
the manner of their application,
and administration, to the basic
concepts of our economic society
Reserve
seek
the
trapped.
come
Re¬
reached
in
is
controls that
This
Governors
o"
had
It
appar¬
Annual
1953.
year
financial
the
in
there
conclusion
Reserve
philosophy.
a
forth
of
port
for
by
came
set
was
the
Reserve Fanks, fort1''0 refun-hrw
are
hmnnrf
no
record as having
I
Treasury debt management and
Reserve credit policy — we can
market,
of public debt issues held bv
FPPAP/n
result:
of
interest?
the
on5' although both the Treasury
ducted
the credit and price
support activ¬
ities of the Federal Government,
controls
so-called
jzed and instructed to issue to the
Given, however, a coincidentally appropriate budgetary
apnronirate handling of
the
as
housing and mortgage credit. 4
Could that, possibly, be desirable? ■>
Could it, possibly, be in the public
Fee-
monetary
affairs.
Re¬
over
This- process
have
take on the
color
President might be given author¬
ity to increase or to decrease all
would
r
about this: The conduct .
policy inevitably same political
sure,
decision, I believe.
consequence of the Re¬
serve's study of the market, its
open
market operations, and of
impact
Reserve
the
voice
one
of Reserve credit
would
a
quirements cf flexib1e monetary
policv also change. Perhaps, the
has
behind
reason
am
sig¬
more
As
debt
of the
the
nificant
far
just
serve's
conditions
helpful as it might
First, it has been no
that
to
help¬
another
was
however,
exchanged some of
its past maturities of
certificates,
notes, and bonds into bills. The
Treasury has b«en unwilling to
great deal to do with
setting the trend of
?n
earn¬
est effort to handle the debt
phoney
taxation (that is, the
scope,
character, and incidence of taxation) and the results in the budget
have
an
Treasury
credit
budget, Treas¬
management, and Re¬
seems
Treasury
administration has made
fully.
a
harmful
the
Government,
debt
fre¬
less
be
mav
shape monetary
that
can
helpful
than
market, in which Treasury
bills are the preferred
vehicle, the
tion of the Federal
ury
and
that
components
maior
policy—taxation,
serve
positively
quently
and the Reserve
Finally, and by
.
.
with
tive
addi¬
Re¬
that
evolve from the tax
structure, by
causing the provisions of law to
credit
the
the
of
scope
to
retired,
In
of
our
credit,
problems
be
task
whom.
part
the
following:
the
credit
and
money
and
monev
on
to
restraining
the
on
causing it to be¬
in a politically-manned council— of what¬
ever name—the score would be, I;
Reserve, by
come
along these lines: Borrowers make
Perhaos, the direction in which
b°ing carried
and
there, is the never-ending
of reconstructing the maturi¬
program
the
located via the competitive process
of the market place.
In elabora¬
Control
we
tion
how
tion,
or
for
•
Treasury debt management: The
handling of the public debt can
but
sold
there
to
carefully set up, and
independence of
often-threatened
the workings
market.
But,
and
Treasury
Self
through the Re¬
serve.
serve.
debt is
structure
the
the
ESKeU
seriously
are
we
j.1
smother
tion, this
effective
when
new
largely
are
cial markets in general.
banking
functions,
requirements
exist.*
a
of
do otherwise.
us
Opposes New Economic Cotincil
And Selective Controls Proposal
three to four years ago, after
careful consideration of the tech¬
our
ment of the
public debt and in the
have
open
some
arrangements,
of
conduct
of
know,
you
so confine the scope of the open
^riarket transactions was k made
We simply
machinery
of
abreast
common
cash surolus
a
is
equal than, under better arrange¬
ments, this general and impersonal
Treasury debt management is of
great importance, too.
As
you
know, it is not just a matter of
The existence of
this
these begin
hold—become more un¬
of the country become
another
or
to
once
—
during this calendar year has been
a tremendous
help in the manage¬
one
advanced
Treasury bills.- The decision to
nical
certain of the proposals
by those who would
neglect
securities.
as
transactions
stated
that the impacts of Reserve
of
budget, for
policy
it takes
means
more
of
all credit
credit policy
to
The latter
directly under the in¬
reason.
the
market
seek, by every means,
use of this extra¬
wider
a
ordinarily usifui organLation.
Perhaps, however, I should not
the relationship of .the Reserve to
of
credit,
while old-line institutions such as
should have
cash surplus.
credit
purveyors
eral-sponsored expenditures and
receipts that are handled outside
a
War
II,
the savings and loan associations,
control
budget have improved consider¬
ably.
We are in a boom.
The
Treasury will have met with a
Reserve credit pol-
banking and credit machinery over the past 10 years.
to whom organized minorities may
Business Administration.
operates in housing and in mort¬
gage
these
However,
of
under
time, it long has been recognized
that prudence and the public in¬
terest urge that credit
powers be
placed in other hands than those
in
needs
fectiveness of
sources
goal.
a
covered for
when
Impact of Federal Activities
how
see
monetary policy have contributed
may have failed to contribute
problems, which currently
to
sense
the
should
we
of
tends,
to
attempt to
do this the Treasury note or bond
market, it would engender dizzy
price spirals, up and down. Even
so, it rarely could accomplish its
you
which
Reserve
or
should
we
confined to the purchase and sale
or
insurmount¬
will agree,
You
that the
about
I do
prove
able.
introduced
Therefore,
situation
the
power,
days.
unnecessarily, to decrease the ef¬
in
/
Monetary Policies in Action
a
the effectiveness
Reserve
Therefore, I might remind
children.
confident
am
a
depenus, in some
considerable
degree,
upon
the
pervasiveness
of
its
influence.
icy.
I
envision
be
cannot
cure-all.
of
unchanged
an
it
snubbed, "but
successive
on
attempts to curb its
to frustrate its inde¬
of action. In addition,
any
economy, it is necessary for trie
Reserve to buy or to sell large
amounts
cf
Treasury securities,
sriape
live
to
as
he
pleases,
couraged
to
chooses, to
Reserve
perhaps,
the
note¬
and thereby, be en-- trols are found in the fields of
exercise maximum housing and mortgage credit. In
these instances, it seems difficult
initiative and enterprise.
Under
Elsewhere,
worthy instances of selective con-
do what
these
.
.
-
circumstances, the
deserves
the
backing
of
.
to view the arrangements as ones
that aim at control. They appear
-
Volume
184
Number
5590
.
.
The Commercial-and Financial Chronicle
.
(2307)
to
function
of
fountains
like
more
Tighter Credit
subsidy and special privilege.
It is the decline in
r.
f
.
n
cnanges in uost oi
Among
that
portantly
cost
of
,;f
^rean
developments
current
several
are
could
im-
the availability
on
bear
and
credit
in
cash
This
billion.
This
Treasury,
manv
deficit,
calendar
for
the
time
rnmp
tin
extent
„£
as
one
ijrv
sbonlrl
urysnouia
the Treas-
see,
Hosp
close
calpndar
caienaar
pauses
mean a
rfpht
aePt.
helpful
that
1Q57
iyoi
uspd
■j-
to
would
be
withdrawals
one
developments
In
have
sold
government
though the
as
used
corporations
businesses
balance,
on
wish
by the Reserve Banks.
liquidity has been
as
result.
The
would
have used the proceeds from their
sales
of
governments
to
make
loans. Such loans and non-Treas-
three
'
minimum
reduced.
The
The
at
most
a
of
proportion
risk
has
unusual
of
risk
inrate,
assets
to
private deposits, that is, to deposits other than inter-bank (domestic and
foreign) and -of the
Treasury, has soared.
The
changes
have
been
of
case
to
most
the
which
banks
in
metropolitan centers.
cause
boom,
such
the
have
we
goods
of
the
in
the
large
is
customers
been
among
persistent
more
borrowers.
The
have
fact
to
that
of
That
banks
rhangps
imoorta'nt
follow
mav
isimoortart is
nuS
thesp
is not
on
what
in
What
X'rpasine
an
theT/us!
feel
cannot
take on many additional
loans except as they gain
deposits,
These banks don't say
they cannot
reduce
their liquidity ratios further. Eut, you don't need a
crystal
ball to know pretty well that some
banks can't
willingly reduce such
ratios much
further
vein, there is
no
In
«
know
of
the
same
magic figure for
an
find
it
is
no
Deposits
ways—if
a
be
can
governments
used
deposits
bank's
v/ill
If
these
used
to
make
If short-
are
purchased,
increase, and the
measure
rise.
to
securities
non-bank holders.
term
three
reserves.
be
may
government
from
to
of
same
"av,
we
are
liquidity
slow
approaching
ana maximum
ratios
business
there
are
lot
a
needs
of
have
will,
share, it
or
sharp
ner
per
it
would.
indications
some
business
or
asset
nmve
liquidity would
un
to
still
undergo
further fall.
bar
to
snare
value
«R15
to
borrowing
VI
1939
pel
Nov.
on
thp
N.
that
it
in
making
acquired
the
Bank
of
J.,
has
merger
fectivP
^>3
the
is
the
also
and
stock
is
nresent
v
record
represents
sto?k
a
ofthe
Board
it
1, 1957.
Plans to
bank's capital were
is
increase
fhp
'
h
'«
and
1,
c+nfP
'
in
?
^
in
?h
'
nf
of
interviewer.
announced
pointed
nffpHncf
heads
the
FHA
the
nnw
iffprpri
tn
of
nthor
amnntJ
holders
bank
of
tered
in
Laws
of
the
The
Sufflok
30,
1955,
*
for
1887
0f
*
A
capital
each
$823>000-
stock.
share
*
of
under
the
State
of
New
Yorx.
of
State
Bank;
Sept.
adopted on
when the South
was
*
the
of
Bank
Peoples
Trust
&
Company of Pittsburgh, Pa., have
Banking
name
present
*
The directors
First
National
County capital stock now
by them. The bank was char-
held
modernization,
declared
increased
an
quarterly
dividend of 60 cents
payable- Jan. 2, 1957,
holders
Siue
of
Bank of Bay Shore and The Bank
The
Hanover
Bank
of
New
York on Nov.- 28 announced the
appointment of 19 new officers
com
each
Suffolk
loan section of the bank's personal
*
value
nar
the
loan department, 67 Broad Strfeep
New York.
Com-
01
ppp
0f
Manager in
Secretary
present, Mr. Meyer
At
of
cariK
National Bank of Lebanon,
Pa., with common stock of $225,°°°> and under the title of the
Lebanon Valley National Bank,
the Annville National Bank of
Annville, Pa., capital $200,000'and
*be Palmyra Bank & Trust Co. of
Palmyra,
Pa.,
with
capital
of
value
Juare
Armr-Hing
Hrmilpr fhe nlan
that
$4
new
ap-
Assistant
an
1951.
was
Assisant
an
and
He
Bank
me
^15.0>°00 w?,r.e consolidated as of
5?ct< ,3i ^
n,^1?.011
new $4
tlonaI Bank. At the effective date
par yalue capital stock for eacn of the consolidation, the consolishare of the present $10 par value date.d
?ailk ^°.rte^ a capital
capital stock of the bank and st?ck of $575,000 in 57,500 shares
holders of the capital
stock of ot common stock (par $10 each);
Suffolk
County Trust Company sV*-pius of $1,425,000 and undiwm
receive 44 V2
shares of the
n
1931. In 1937 he was transferred
to the personal loan department
an
and
The
01
anon
7fi 9SR
npr
'
hpt
nrnviHp<;
by Horace C. Flanigan, Chairman
of the Board. Mr. Meyer joined
Manufacturers Trust as a page in
as
even
Ienaef eye.a
Under the charter of the Leb-
'+hp
etnrk
.
thinfs
is
$o0,000,000.00.
to render
V-
eommunhy.
nersonnel
i«s
Th
the
*
York
more
total
L g®,1 ^S
was
Sf
,,/nv
P,
dent of Manufacturers Trust Comof New
us
u
The appointment of Henry G. share of
capital stock of the bank
Meyer as an Assistant Vice-Presi- win receive 2V2 shares of
pany
of
and
of
excess
This will enable
a"d real
nffprirw
T3anu-
1incripr
1861.
page
accounts
H»uu,uuu.uu ana totai re
Tbair-
panj+Ql
npr
these columns Nov.
in
VicP
Oct." a"d J*
N
April
announced
capital
$3 800 000 00
sources
*
,'"f
split.
that
beginning
*
Trustee
a
hPcamP
vice
1S53.
*
*
*
merce have been retained.
Following a plan of merger beDetails of the plans incident to
tween the state Bank of Suffolk, the merger of the two banks apLonff lsIand» ,N* Y- and the Suf- peared in our issues of Oct. 25,
folk County Trust Company ap- page 1759 and Nov. 6, page 1982.
Proved.by tbe directors of both
*
*
ef-
hank
of
which
announced
new
hp
have
S
Vicp-
Lxecutive
and
in
was
personnel
additional
one
stockholders
.iividend
Etock
Fvpcntivp
benior
vpar
He
fur-
plan
the
an
four shares for each
1956
thp
of
and
mailing
currently
Savings
$5'500'000- Af estate f ^
announced Ch?T department.
approved
Nov
Spninr
was
Comntrollpr
has
rencv
for
Vice-President.
a
President
man
it
arkj became our fifth banking
office serving Newark and Essex
County. The merged institutions
and also
Gf Amityville
cents
1956,
merged to form the
present bank. At present the bank
operates
four
offices
at
Bay
to
share,
to stockDec. 14, 1956,
record
extra
an
per
per
dividend
of 25
share, payable Dec. 22,
stockholders of record
Dec. 7.
and the promotion of three others. Shore, Amityville, Brentwood and
*
anticipated—
thing. If buciness is slowed
Newark,
.
merce at 313 Market Street, New-
Stanley van den Heuvel was ap- North Lindenhurst.
"Just
to
be
sure
we
have the pointed an Assistant Vice-PresiThe circular adds that "on commoney if we need it." It seems to
dent in the personal trust de- pletion of the merger with Sufme>
though, that either contin- partment. Named Assistant Treas- folk County Trust Company the
fency adds un to about the same urers
were
Robert
W.
Keith, bank will be one of the largest
been
,.
"On Nov. 21 The Bank of Com-
I
.
Bank
This
is hping incrpaspd
time
as
namea
?o%T,500 0^
that
,
The
nampd
npr
J}>15
announced
was
Thp ranital
or
down. Or-
The
Bank
*
of
*
Virginia
Rich-
of
mond, Va., is adding another trust
officer
to
Thomas
its
trust
Boushall,
C.
announced
department,
President,
Nov.
John
on
19.
T.
Personnel; Alfred O. deGruchy, banks in Suffolk County; opera- McGrann has been elected Assistdecreasing ability of the Fersonal Trust; Robert W. Bird, tion of the Suffolk County Trust ant Trust Officer
by the board
banks to lend, this "low-down will In» and Lynn H. Moore, 42nd Company as the Riverhead office of directors of the bank and
will
reduce some-of the now envi- Street
office; Hector M. Mac- of the bank will add the fifth
report for his new duties Dec. 3
sioned demands for capital and Ketkan' 3r-' 72nc^
by
down
the
credit.
If
business keeps going
already has borrowed
it
a"d
Thomas
,
Chrysler
ol^iee; office."
F.
office.
*
As-
rpj^
On
the
stm
whole
therefore
it
would
that rfe mav strike a
better balance between the supply
arid demand for long-term funds
sometime between now and the
middle of next year. Also, there
may be a reduced supply of shortterm
Treasures around as we
move into the middle of 1957, and
some
competition 'may
The above, how-
increased
exist for these.
pany
js
*
j^ng
*
Island
Trust
Com-
0f Garden City, L. I., N. Y.,
pr0posing a further increase
capjtai stock and total num-
in
Eos£ Jg'. Clty ?'^S10n; ^™ar-d
Administrative
as
Ratchelous,
Appointed
*n advance of its needs, future sistant Secretaries were John J.
demand<5 for capital and credit Fvans, 111 and Fred A. Rager, Jr.,
skould ho less just the same.
Out-of-town Division; L. Abbett
ber of shares.
Frederick Hainield,
Officer
under
the direction of Reginald C. Short,
Vice-President and Trust Officer,
who
heads
partment.
in
Bar
the bank's
Admitted to
June
formerly
was
trust
the
deOhio
1953, Mr. McGrann
Assistant Trust Of-
grt^P^nar T^^n^c"' ,Jr'
states that the fleer of The First National Bank
Swiston^•-boardsof chriectors is recommend- of Cincinnati,
V
R
ug
issuance of 16,240 new
*
*
*
rnndhiip
rhrv<?ler office- and M
£GS o°!* ?+P3+u
?
Charles T. Fisher, Jr., President
rahpii Woodward
34th Street of- S?
the approval .°J of The National Bank of Detroit,
„
Personnel.
r>ack'
josenh
Denartmentv Stephen
.
N'.mPfl
Foreign
o.-,h-mnnaPprq
Division
were
Dodw^
C
1
1
+
*be
stockholders at a special
n/eetinS hefd on iN°v. ^7, 2,240
'
fjpp
in
the
Samuel W
London Citv Office- and Albert
'
^ a5"es
g'
+ne^
!ssVa
n/ ?eenrd
i f?nf 9^
th
Detroit,
^Yeye of
Nov
30
19 nnn
Mich,
announced
on
Nov. 27 that of the 283,400 shares
common stock offered to stock-
holders
at $52 per share' sub'
scription have been received for
or interest rates by midThat
is
question
because
remains:
big
a
What
open
further
7"^ if any> wi"
'
RferVe Ba"ka?
discount rates
to be
increased
e"cl of this year
or
now
at
and
the
the
begin-
ning of next,
t^e composite result
might be that little change in the
levels of interest rates would oc-
jur bv mid-1957, in spite of the
favorable
possibilities
have
I
see
no
need
for
an
uoward revision in discount rates
at this time, but that doesn't
a
thing
G. Palmer and Marcel J. Woutsrs.
All
except
that,
mean
should
no
such change eventuate, then, interest rates might be lower by
mid-1957 than they are today.
In closing let
now to the end
me say
of the
this: From
year,
sea-
formerly sub-managers.
were
••*••...
Harold
were
between
Personally, I
were
loans
tbpjr rhk
deposit ratios would
further,
Market
reserves
additional
basis;
to
1fom
in
mentioned, unless business sagged,
purchase non-Treasury securi-
is
few
so
liquidity will
ties, bank risk assets and
denosits
would increase on a
1-for-l
that
But,
that
If their
created
bank has the
reserves
purchase
<t25
1947
asset-deposit
Ca^ al °r
-
has, relatively,
dinarily, I would think
increasing number
bankers
n°f"frLa
Rankslws depos ts.
dennsifs.
These
risk
will not
«-s
that
prudent
shame
a
.
that
because
,
gone
itself
be-
capital
a
the
have
and
refer
in
This
been
and
banks
largest
I
marked
that
Now, I don't know whether the
have
deposits
bit of
Better Balanced Money
liquidity
proportion
a
re-
gov-
time,
same
It's
were
"
fact
total
the
bills.
changes
measurably
at
help.
have transpired: Measures of bank
been
requirements
the Reserve
securities comprise their risk
Therefore,
reserve
ernments
banks
if
Of course,
duced, and the Reserve sold
reduced
a
lost
even
if
creased,
from
,
joined
the present intention of the board
of directors
to pay
a quarterly
dividend of 40 cents a share on
necessary ~ reserve
balances
to be made available to them
were
,,
It
their
1
increase the eastern mortgage loan offices. He
300,000 from
60,000 and to reduce the
a
af"
that commercial banks might
\3e unable to purchase short-term
governments
I
been
may
of
some
VI
non-
and mid-
*
♦.... *
The West Side Trust Company
through
<
.
,
°" such anaIysis. u would
In
years.
bank
to
'
*
21
curities from their portfolios dur-
assets
.
outstanding shares to
Nov
has
now
*
known
ic
number of tshares to
directly,
portfolios
ing the past couple of
assets.
t
A
to
pear
a
know.
fUAWg A!}©Uf ISclIlkS 30(1 DSOKfilS
ilWVlii vUlftliii UAfttA Wlllftl\vAil
held
—
in
interest-bearing
This, if undertaken, would
decrease bank deposits too.
se-
general,
ury
a
to
were
form.
banking pic-
banks
of
result
liquidity
the
a
ui
by
for the time element.
1957, such
to
rebuild
first-rate imporconsiders other
the
m
Commercial
large amount
or
held
addition, the liquidity of
financial
prospeccome from
will
same
surplus
shrinking. Between
ture*
..
guess
For practical purposes,
bank
except
a?mUnnrt
some
when
uu
uuecuy
would be the
bank portfolios, both directly and
indirectly. Deposits will decrease
tance
r e-
dirpctlv
governments
Treasury's
reduce
.
ContinuedremmoC61
eof from page
c Newark, states:
evnensp
win
therefore, the eventual
Some portion of these
of
nurcbasp
+1
the banks.
more
ahead.
is
+-
Wt
tional
licly-helcl aebt.
That
thp
porations may be taking on addishort-term securities from
non-calen-
a
the first half of 1957, it
may withdraw some ,-R billion of the
pub-
_
at
^orations. This will
During the last
half of this year, the
Treasury
will haveadded about
S3.3 billion
to the publiHy-held debt.
During
tive
is
ucpuans
increase during
period of" $5,671,-
an
12-month
of
n
sur-
surplus will
indirectly,
visualizing the forces
be set in play in the
may
months
cash
deDositrwil
good
hp
the
tighter money—is a.good short- really don't
same
measure
in
will
reTf/emenf o'f pX £$ ttwce^now an^then'co?' ^rplUS bfCOme?
uetween ,nuwana men, cor
the
Perhaps however,
dar year
this
banks
fame hmo'unrThlse cash"sur!
liclv-hplrl
nciy-neict
large
/ormnateiy the would
i
portion of
a
$45,072,647.86,
853.90.
the^ Treasury Tses
as
•
around ^D.D billion
arouna $6 5 Pillion,
can
casn
the
bet.
Beyond that, the prospects for somewhat higher bond
prices—and lower interest rates—
run
business boom.
look as though the popular view— are brighter than they have been
that we are in for higher rates and for some time. How bright, I
retire publicly-held debt
during the first half of 1957
To
in
Insoiar
rates
pressures of
This makes it
a
pius to
with
™cash Surplus
suipius,
a
environment
prospectively
the
year,
interest
on
~
tighter
COmeabout
its
$°/i
first
shnnld
vpars
about
pressures
will fall on top of the
in prospect.
1957.
First, there is the
improved
position of the budget. In calendar
1955, the Treasury encountered a
modest
sonal
liquidity and
the increase in risk asset to deposit ratios that is really tightening the credit environment—but,
a lot
tighter situation seems to be
.
31
man
of
of
The
Board
York,-died
anment
for
on
He
•
Vice-Chair-
Rutan,
D.
the
Bank
•
and
a
Trustee
Law
from
Nov,- 13 of
57
was
the
School
heart
a
of age.
J., he graoiY. University
years
N.
and
served
in
the
Navy in World War I. Mr. Rutan
began his career with the Prudential
Insurance
Newark
in
he
went
there.
Newark
later
the
of
in
was
Company
The
Montreal
of
He
praiser
1924.
to
Manager
the
the
next
as
1927,
and
named
in
office
regional
home
in
year
Assistant
concern's
became
home office
0f
office
two
in
years
Supervisor
charge
ap-
of
of all
16
Nov
share
one
eight
each
on
of
a
'pro
shares
of
rata ba'sU
stock
new
the
be
The
issue and
the 263,400 shares of
0
held.
stock
underwriters.
stock
new
u?®uVscrib?d shg?5 at„$5?I/2-Thef
for
A. M. Kidder & Co. of New York
will
Savings of New,
Born in Newark IN
uated
^cord
WS2
lssue> page 1982'
*
"
of
tal of the Long Island Trust Comto $1,282,400 and surplus to
of
$1,688,000,
stock
is
a
total of $2,970,400. It
estimated
undivided
that capital, surplus,
profits, and valuation
bv
Dec.
31,
1956, will
total approximately.$3,870,400. In
its statement of condition as of
reserves
Sept.
30,
1956,
the
company
the
$30,600.frt0 to
dividend
more
than
12%
in
total
posits since Sept. 30, 1955—an increase
the
of
total
assets, as
$5,111,805.43—bringing
$40,483,492,93. Toial
of Sept. 30, 1956, were
to
of
by a
$1,530,000, be-
effective Nov. 8. The action
incident to the enlargement of
the capital was noted in our issue
of Nov. 8, page 1982.
has
de-
$32,130,000
came
ArfKnr T newenhpim
shown advances, reporting a gain
of
*
recently enlarged capital
Republic National Bank
Dallas, Texas, increased from
dividend will bring the total capipany
*
The
stock
rt,UiUI
Arthur
i+h
Ahhntt
^lin ^ JU
New
wyycuhcuh
Loewenheim, associated
York
Prootor
'
'
Lity,
Paine
&
'
.
passed
away
November 20th at the age of 74.
22
The Commercial and Financial Chronicle
(2308)
'Continued from
As
first
page
We
and without
v,:.-v
See
not
fully healed. It was doubtless just this that Lenin
had in mind when he is said to have remarked that
we
-
shall conquer the west
It
that may
graduation through membership in the Com¬
monwealth, central and southern Africa could
to
democratic
no
ambitions of
r; combined
through the east." But, however
Britain
the
imperial expansion. The
maintain
can
time
same
her
We
idea that her
all
policy in the Middle East is based on 'colo¬
myth carefully nurtured by the Communists
and their cat's-paws such as Colonel Nasser. On the con¬
trary, it was the end of the last vestige of British 'colo¬
nialism'
Canal
the
a
in
signal for Nasser to reveal himself in his
and
defv
way to
if tl^at
been
the
world
which
has
back the
since been
the
Israeli-Arab
war
extinguished. We cannot put
clock, and its hands still
move
tion will be
it
evolved
on
$430 billion in current
On the other hand, if
the economy continues to operate
above the long-term growth trend
of high employment years as dur¬
ing the past two years, Gross Na¬
tional Product in 1957 prices might
rise as high as $440 billion.
average
1957
the whole
with
to whether that organiza¬
as its organizers hoped
always been contemptuous of it; now
became vital to the continued life and health of
Government Expenditures
First,
what about the demand
goods and services by
Government—Federal, State, and
outlook
But
local?
formed
change and
do international
so
relations.
undoubtedly well known and understood
British
circles. The nation has been
remarkably
adapting itself to changing times and chang¬
ing philosophies. Great credit must likewise be given
British leaders for the constructive work in
guiding and
assisting many backward peoples toward freedom and
self-government.
the
real interest at
no
globe except
all
decolonializing
the process might
as
any
part of
advance Russian
interests. Remove Russian influence from the
Middle East,
example, and the British would have much less dif¬
for
ficulty in "retreating" from colonialism
that
part
All
this, however, leaves quite
the best procedure to
Mr. Hodson and the
open
of
the question of
accomplish stated
rest
say
purposes. All that
about the dependence of
Britain upon Suez and Middle East
oil is
obviously true.
The real question has to do with
the best method of
pro¬
tecting and conserving these interests. Mr. Hodson seems
to think,
though he does not say so in so many words, that
Britain was
right and the United States wholly wrong
sults
the
to
way
date
to deal with the Suez situation.
Yet
re¬
certainly do not seem to suggest that Sir
Anthony Eden and his colleagues will win the plaudits
of realistic historians.
Britain
apparently badly misjudged
both rthe determination of
fanatical Egyptians and the
force and drift of world
opinion.
Mr. Hodson is
from colonialism"
that "retreat
will
present many problems and danahead. This probably will be most
pain¬
fully true in all those regions where the Kremlin has an
interest in
making it the-more difficult. Yet it would ap¬
pear inevitable that the retreat take
place—as Mr. Hodson
in the
gers
in
The Joint
Staff
years
upon
We
for
lem
It has,
however, in
more
than
one
feelings which make the prob¬
dealing with former colonies the more difficult,
only for Britain or the other former imperialists but
for other nations
as.
well.
1
of
There
from
many
is,
unfortunately,
colonialism
areas
left
to
where the
be
scars
a
good
done,
and
value
in
the
into
bor
consideration
per
changes
deal of
there
ernments.
In
result
studies,
1954
of
we
ex-
Potential
j
the
gov-
National
in
prices,
would
useful
Decade."
trend
From
the
compare
short-run
outlook
current
with
are
un¬
Thte
a
fiirnva
This figure
PPred. ZiV.?!3
about
in
this
Will
this
achieved
activity
pect
this
into
1957.
1957
as
continue
economy
trend
whole
The
since
still
could
the
long-
stable,
prices
billion
average
have
pectation among
rise
prices
and
last
1956, prices. But
to
rise
widespread exbusinessmen and
might,
$440
year,
in
billion.
a
good
would
of former colonialism
depend
have
which
the
on
in
1957
Gross
current
Na1957
between $430
range
The
the
economy
ruled
to
grow
out
if
the
at
different
if
in
take
1956
of
the
con-
present in-
situation
the
cannot
we
possibility that* de-
spending
Outlays under the combined soil bank
and
foreign
and
increase
might
over
aid
even
more.
support programs for
may
increase some-
price
agriculture
calendar 1956.
Interest
the public debt will increase
$200 million or $300 million,
on
Although
many
issues remain to
be resolved, we cannot overlook
the possibility that a program of
Federal aid to education might be
by
some
_»
_
next
the
effect
11..
i
_J!
on
1
Congress,
expenditures
r\c r-
before the end of 1957.
t,,
In
i,.
sum
to¬
spending is likely to
increase from $2 billion to $3 bil¬
tal, Federal
lion
.
in
Part
in
up
calendar
1957.
of this increase
the
or
form
will
show
of transfer
pay¬
State and local expendi-
tures through grants.
in '
State and local expenditures for
than
annual
averages.'goods and services have been risif
hours-decline
moderately in ing by about $2 billion to $3 bil1957
in
line
with
longer-term lion; per year.
This rate ctf intrends, total man-hours worked crease
is
expected
to continue
we
might
increase
next
year
up
i%.
Output
to through 1957 and may even accclerate somewhat during the year
long-term by between 2 and 3%
per year.
In the past ten years
A
aoproximates
the
Product
be
cannot
is stated
figure
economists is that prices will rise
still further in 1957. If the rate of
of
or
starts
year
continued
throughout 1956.
out
fense
i
man-hour in the priVate economy has increased in the
trend.
$20
If
labor
only 400?0(M)
continues
moderate
,
average somewhat above the
run
rule
ments
1955
a
be
a.
spending may rise by as
$2 " billion in calendar
view
ternational
Average hours of work, accordjng to Census data, have been very
little
to
as
In
tempo of the past two years.
.
the
the
However, the normal in-
demand
to
if
900,000.
in
line with longpopulation of work-
may
crement
leveled off somewhat later in the
year,
1957
of
Even
annual rate of
to
have
should
Defense
what
1956 appears
increase
administrative
by reductions in toll road
with
continues
expansion
set
1955; about 400,000
800,000
the
on
adopted
fourth 'quarter
the
in
about
^ie increase between 1956
500,000.
The majority of analysts ex-
1956.
with
output of $412
{n
un¬
construction activity in
calendar 1957, although some of
these expenditures will be lor site
acquisition
rather than current
production, and some will be off-
1957.
billion
$5
jncrease
jmpact
much
.....
and
be
1957
exceeded?
or
Business
for
in
the
jng age
when thq general
tempo averaged slightly
*on£"run
estimate
wni
of
are
budget, Federal aid to highways
may
increase by about $600' to
$80o million in fiscal 1957-58. This
1956
expected.
average
of
1957
.
com-
year
economic
about
the
on
programs
outside
fund
term ratios to
nAm-
be
or
1956
present
$420
in
long-term growth
for
suggest,
changed. Programs, however, are
growing and increases in expendi¬
tures to carry on these programs
are anticipated.
For example, al¬
though treated as a special trust
force tapers off in
production of
now estimated
$412 billion
ior
Ko
mnu
may
the
increase
national production of about $420
billion in 1957, expressed in 1956
nt'l /-•/-!
a
alone
struction.
averaged about 1.3 million
than
above
growth trend would call for gross
prices.
n0w
to have
long-term
about
consistent
The ]abor fQrce
more
the
be
value
billion,
bjiijon
GNP in 1957
of
of
if
Gross
a
expressed
iess than the actual
calling for similar measurements.
Continuation
that
on high employment
This figure compares with
trend
$497
this
long-term trend. The Employment
Act, itself, is rather specific in
1957
in
based
years.
.a
to
1957
continuation of
time to time the Committee finds
and
Output
Product
pinion
continuing
"Potential Eco-
Next
im-
economic
indicated
have
published
....
I
this
vital raw materials and increased
military and foreign aid spending
cannot easily be assessed at this
time.
nomic Growth of the United States
During
serious
these
entitled:
that
pacts. The effects on the economy
an interruotion in the flow of
in
by consumers, business, and
tional
retreating
and
clear
of
population, laforce, hours of work, output
man-hour, and likely demand
that
are
actual
make
could have
or
Rather
explicit statements of
— using
largely hisrelationships. These take
pected
further,
proceeding
to
The growing revolt of the satellite countries and
the disturbances in the Near East
judgments
trend.
price rise.
tional situation.
economy,
no
rise
set forth
we
price
Much Yet to Be Done
now
to calendar 1957 it is
increases
analysis assumes there will be no
significant changes in the interna-
long-term
the
make
rate
considerable
success.
Committee
about what should be the level
in
very
left behind it festered
of
Before
want
growth
based
past high employment years,
apparently realizes. In point of fact it has been
taking
place for decades—and more often than not with
not
amount of the
passing
and
Economic
projects
trends
above
case
considering
expand
quite correct in his belief
only
year
contrary, some rise in outlays even
the long-run growth trend and the
This is
economic legislation.
it
in
the world.
about
for the year are available.
one
in
shape.
Major
decisions
be made. But looking
forward
Previewing 1957 Outlook
torical
freely and gladly conceded. It is likewise
plain enough that Britain's work of
retreating gracefully
and
constructively from colonialism as it has been histor¬
ically known has been enormously complicated
by the
machinations of the Kremlin
which, as everyone knows,
has
j
assumptions
Freely Conceded
All this is
for the
s
fiscal
likely that reduction in Federal
spending will be possible. Price
in in¬
successful in
biu d g e t
Government
have yet to
Continued from first page
use
times
for
coming
usually early enough for Congress'
All this is
econ¬
taking
the
Britain.
the range
figures the
develop.
portions.
fates of large sections of the
globe in various
parts of the world. Some of these relations in the course
of time
several
might operate in 1957 it will
be helpful to evaluate the demand
for goods and services that may
constructive.
By good fortune or bad the life and future
"tight little isle," as Britain has been called, natu¬
rally. perhaps inevitably, became
extensively intertwined
where within
see
these
omy
was
of the
prices.
To
of
aged its prestige. It remains to be seen whether it can
survive many more such incidents.
;
Present-day world problems are very real problems.
They will require patience and prescience in generous
through those centuries. It had
larjr« Larts of the
fi end,
Product might
National
Gross
the Suez actions of Britain and France have further dam¬
today is by and large in accord with tne facts. Britain
through the centuries developed in a world as it then
as
as
rise, with
ou<P* witlT the long-terra
-
permitted to function
it v/ould. Russia has
in which Britain finds it%if in the world
much to do with the
way the affairs of
world were conducted, and its influence
an open one
probably by 1%
If prices continue to
work
question is still
One must agree, of
course, that Mr. Hodson's account
existed and
will
throughout 1956 and
will be above the
rising
-year's average
have remained outside the United Nations, but the
powers
ism' but the continued retreat from it is
going to produce
the dangerous
problems and crises of tomorrow in inter¬
national affairs."
of the position
-
constructive
a
because the United States held aloof. None of the major
Not 'colonial¬
on
find
and
through the United Nations to reach
might be elusive. Great hopes were
entertained at one time by a good many that the League
of Nations could function in this way. There are, or at
least were, a good many who held that it failed primarily
by seizure of the canal.
1947 that unleashed
never
live
must
ends which otherwise
Likewise, it had been the end of British 'colonialism'
Palestine in
States
make its influence felt and at the same time avoid.
and
can
true colors
'
in
United
1955
year's end
by
be possible, involvements which could be exceedingly expensive;*
We shall see, too, whether the nations of the world
Egypt—the voluntary evacuation of the Suez
by British troops ahead of time—which was
base
the
indicated that in
have
long-term trend. Also, prices have
parts of the world where her empire lay. And through it
nialism' is
man-
national production
has remained about 1% above the
exist in many
now
in
and 1956 total
position in the world, and at
the tensions which
ease
changes
would raise output
between 2.5 and 3.5%.
by
be, it is in this field that the most difficult and
problems will be encountered during the
just ahead. During that time we shall see whether
decades
not advance
with
hours worked,
delicate world
independence without disaster.
"Britain has
Thursday, November 29,1956
.
.
.
exact
total
extent
stays
to
above
per
the rate has averaged somewhat
higher—ranging up to 3% or betIn 1956, the rate of increase
ter.
seems
to be less than average, per-
haps as little as 1%. Indeed, some
preliminary
estimates
show
110
change in output per man-hour
between 1955 and 1956 for industry as a whole. This is partly be~
cause of shifts in composition of
output
among
among
industries and
• If
output
per
products.
man-hour
rises
in
1957
in
line
highway program gets
A substantial backlog
of schools and other facilities still
remains to be constructed by State
and local governments. Wage and
construction costs, which
affect
State and local budgets, are ex¬
pected to rise-further.—
Total Federal, State, and local
purchases of goods and services
could rise next year by between
$4 billion and $6 billion. Within
this range the best estimate to use
until further information becomes
available in January would _be
about $5 billion. This could bring
the total government demand for
as
the
new
underway.
Volume
184
Number
5590
.
The Commercial and Financial Chronicle
.
.
(2309)
current
production
billion in 1957.
to
about
'
;
$85
the
effect
business
investment
has been placed upon the
September, 1955.
This was lower,
however, than in other recent
the
Consumers' Purchases
1.53 compared to 1.44 at the end of
plans of the relatively tight money
market? Monetary theory rests on
"
"
•
.
administrative budget. Present
indications point to an adminis-
years.
trative
on
assumption
that
restrictive
The
second
large category of
demand—the biggest and most im¬
credit
to
cause
portant
or
postpone capital investments of
of
chases.
must
all—is
Among
the
consider in
pective
consumer
pur¬
factors
evaluating
one
are:
changes in disposable personal in¬
changes in prices; popula¬
increases; credit conditions;
comes;
tion
and
attitudes of
selves, which
them¬
consumers
reflect the in¬
may
fluence of other fatcors. In
total,
if incomes, prices, and
population
continue upward at recent
rates,
and automobile sales
improve
somewhat
from
1956
levels, condemand might rise by $14
sumer
billion to $18 billion in 1957. This
would imply that
savings would
be a somewhat smaller
percentage
of
disposable income
than
the
7.4%
prevailing in mid-1956, but
above the 6.1%
of
Business
1955.
In
in
than the rise
if
goods,
to exercise
housing,
or
the
were
In
than
working against
ued
rise
labor
in
been
stable compared to earlier periods.
In
the
1948-49 recession fixed in¬
vestment in construction and
pro¬
ducers' durable
stant
and
equipment, in
con¬
prices, declined less than 7%,
actually rose slightly in the
1953-54 recession, compared to de¬
clines of almost 25% in the 192930
period, and about 20% in
38.
Between
decline
and
about
was
duction
1929
1937-
1933,
74%.
the
This
re¬
tuations
sis
During the past
fixed in¬
year,
accounted for about
of the increase in Gross
National Product,
although it is
only about 15% of Gross National
What
ment
does
the
situation
today?
My
business
for
1957
invest¬
look
like
inclination for the
own
present is to
assume some
further,
slight, rise into the first half
1957, and then a leveling off, so
but
of
that
next
would
year
about 8 to
average
10% above 1956.
of this increase would be
tion of
rising prices.
Why
djxpect
The
further rise?
a
tinued
plans
rise
indicates
through
quarter of
1956
equipment
part
ment.
in
the
capacity
am
the
nothing about
wondering, however,
possibilities
of tempo¬
capacity and its effect
The somewhat
con¬
an¬
of last
survey
spring presented
an optimistic pic¬
spending in 1957. I noted
that Mr. Frankel, managing news
"Electrical
World", told
Security
the New York Society of
Analysts
recently
that
electric
utilities in 1957 will increase their
spending
over
on
facilities by 14%
new
this year.
Furthermore, new orders for
equipment and construc¬
contract awards, both of
which
precede
actual
spending,
capital
tion
have been
in
on
higher level than
a
1955.
On
the
cators
other
point to
hand,
a
lor capital equipment rose
from 1955 to
tuated
for
plateau.
indi¬
some
leveling off later
Although new orders
in the year.
sharply
1956, they have fluc¬
several
Also,
in
months
recent
on
a
months
In
1956
pected
1955,
to
to
pared
1955.
be
about
about
or
1.1
than
more
15%
below
million,
1.3
com¬
million
in
However, dollar outlays for
residential construction in 1956
are
only about 7% below 1955, reflect¬
ing increases in prices as well as
in
expenditures
for
alterations.
Costs this year are about 5% above
1955 and the typical new house is
In
1957,
year
to
starts
of
slightly
or
point
now
level
same
less—about
million.
Rising costs, continued
larger homes, and increases in out¬
lays for additions and alterations
should
result
in
slightly
higher
dollar expenditures for total resi¬
dential nonfarm construction than
in 1956. Deflated to 1956 cost lev¬
however,
slightly lower.
outlays
be
may
For construction not included in
plant
outlays
outlook
residential,
or
to
seems
be
the
for
slightly
higher dollar levels than this year,
though possibly down slightly in
real
terms.
If
farm
income
is
somewhat improved, as now seems
possible, farm construction may
rise, but this, of course, is a small
Manufacturers' shioments of
1956
are
1955.
running 20 to 25% below
These outlavs could improve
whole,
appears
compared
the last
favorable
more
with
any time
several years.
during
Inventory
■■■■.
Business
Build-Up
.
Trend
inventories have
clining.
Some
adverse
on
be
factors
the horizon
prepared
to
so
are
that
ap¬
we
change this
lories amounted to $4.1 billion in
the first quarter, $3.5 billion in
the' second, and $2.0 billion in the
third.
ter
The rise in the fourth quar¬
be higher than the third
may
—mainly because
steel
steady to ris¬
ing rather than falling as in the
third quarter.
In manufacturing,
the
inventory build-up
have
from
affected
raw
all
materials
to
apnears
types of
to
goods,
finished
as
yet but in
our
knowledge
of inventories this situation should
watched
demand pressures in
many, if not
Production gains
most, countries.
have been limited
by capacity bot¬
tlenecks and labor shortages. For
the past two years, many countries
have
applied
general
pressures.
ternational
conditions
reflected in
shift of net
a
investment from
billion
nual
dollars
rate
of
1955
an
an¬
in
the
tinue
at
between
Demand
in
the
$430
billion
and
that demand
be
sufficient
$440
nitude in
—that
of
further
the
an
in
as
rise
of
be¬
tween 2 and 3%.
Therefore,
1956,
one
of mid-November,
as
expect
a
moder¬
ate rise in real output in 1957 from
current levels, and a continuned
moderate
rise
in
prices.
Policy Problems and Implications
No
discussion
outlook would
out
of
the
economic
be complete with¬
examination
of Federal
and
monetary policies.
end
of World
War II
fiscal
Since
the
the
en-
and
artmput of the Emnloyment Act of
1946
Federal fiscal
policies have,
and monetary
the whole, con¬
on
tributed to economic stability and
growth. There is, I believe, a con¬
tinually increasing appreciation of
the
relationship of Federal ex¬
penditures and receipts, and credit
and debt management to the level
of and changes in economic ac¬
,
mounting inflationary presIn large part, these policies
have taken
the form
of monetary
restraints, reflected in the
succes¬
sive hikes in rediscount rates and
in
the
holding the tax line—applying
emerging budget surplus to
Federal debt
Durable
goods producers have
experienced rising trends in both
the ratio of unfilled orders to sales
1955
to
From
September,
sions
as
reduction.
to tax
policy and expendi¬
ture
policy rest on the size of the
prospective surplus in the Federal
budget. At present tax rates, in
fiscal
1957
the
consolidated
cash
budget surplus
ratio
months, while the unfilled orders-
ent
rose
ratio
months
inventories
additional business capital
budget information becomes avail¬
Foi
example, what will be
and
to
Among
fro-u
rose
1.8
months
from
to
about
2
3.5
producers!
have been rising
At. the end of
fiscal
1956.
also.
September, 1956, for
example, the stock-sales ratio was
somewhat
higher
continuation
the
economy
tionally,
of
as
if
For
might
range
assume
present trends
a
however,
this
whole.
greater
Secretary-Treasurer.
are
point
expenditures
under
existing
now
in
indication of the need for and pos¬
sibility of general tax reduction.
It should be noted,
however, that
this surplus results from
as
continued
economic
continuing
expansion
upward
price
pressure, it represents an impor¬
tant restraint. General tax reduc¬
tion,
under
such
serve only to in¬
inflationary pressures, and
even
reliance
greater
on
monetary stringency.
Policies
Should
On the other
ing
in the
tivity
Business
of
pace
economic
presumably would
rapidly to reverse
present policy of restraint. If
the
move
nnri An
action
4-a
miay^a
rvvAt ia
to
were
prove
inndo
inade¬
quate, reflecting a more persistent
and more widespread downturn in
activity, tax reduction would be
It
in
Tradi-
stress
West
Balsam
42n6
Opens
BROOKLYN, N. Y. — Martin J.
Balsam has opened offices at 1656
5.8th Street to
^es business,
engage in a securi-
Saul Berger Opens
Saul
Berger is
conducting a
securities business from offices at
93 Avenue B, New York
der the firm
City, un¬
Family Mu¬
of
name
tual Funds & Securities
Company.
Bishop Opens Office
SYRACUSE, N. Y.—E. Lawton
Bishop is conducting a securities
business from
offices
in
the
Lin¬
Building.
Ludwigsen Forms Co.
ac¬
apparent
the Fed¬
year,
130
Slacken
Reserve
be able to
'
at
Martin
slacken¬
a
become
during the coming
eral
"iiew YoWcitv
coln Bank
hand, if
should
offices
circumstances,
therefore, would
crease
from
street
far
1957, particularly on
a
consolidated cash budget
basis,
is interpreted by some as a clear
insofar
Anglo-American Securities, Inc,
engaging in a securities business
or
this
surplus of the magnitude
expected
is
subject to
are
variation
in advance of fiscal year 1958.
with
-
-
judgment.
own
both
of
range
course,
at
our
•
revenues
wide
Clarence
gaging
from
Ludwigsen
securities
a
is
en¬
business
offices
New
at 30 Broad
Street,
City, under the firm
W. Ludwigsen ComMr. Ludwigsen was formerly
York
of
name
pany.
...
W.
in
—
C.
-
.
_
_.
with Edward A. Purcell &
Co.
McGinty & Edman Open
might be noted that
(Special to The Financial Chronicle)
change-around in monetary pol¬
icy may take less time than re¬
Edman
versal
of'fiscal policy, but the ef¬
fective lead time required may be
Jr.
greater. Thus, both areas of pol¬
icy must be flexibly used.
Street
FAIRFIELD, Calif.
have
to
J.
McGinty,
McGinty & Ed¬
formed
with
man
James A.
—
Thomas
and
offices
at
in
engage
431
Texas
securities
a
business.
Corporate income tax rates and
certain excise rates
are
scheduled,
Midwest Sees. Co.
under present law, to decrease on
April 1, 1957.
these
at
are
billion
FT.
The revenue losses
automatic
reductions
present estimated to be $2.0
and $850 million, respec-
tively, for the fiscal
year
ending
June
WORTH,
Securities
with
Tex.
has
Co.
offices
Boulevard.
at
Midwest
—
been
formed
Hampshire
4500
Officers
are
Vernon E.
Smith, President; Thomas L. Mil^er> Vice-President; and G. Smith,
30, 1958. Accordingly, an explicit decision with respect to tax Secretary-Treasurer,
policy is required by March 31.
In light of the current problems
Schwartz Forms Co.
of small business,
it is possible
BAYSIDE, N. Y.—Sol Schwartz
that tax revisions, along the lines
is conducting a securities business
suggested by the Cabinet Commit¬
from offices at 220-27 73rd Ave¬
tee on Small Business, or a num¬
nue under the firm
name of Per¬
ber
of
alternative
plans previ¬
sonal Security Planning Co.
ously suggested by members of
the Congress, will be proposed in
the
next
lieu
of
session
of
Congress
scheduled
the
The timing
anticipated.
of these
changes, however, should
the
fit
Randolph House Sees.
in
reductions.
Proposals for changes in the pres¬
ent
excise
system also
may
be
into
Randolph House Securities Cor¬
poration has been formed with
offices at 22 East 29th
York
the
analysts
-
have
Murray Schindel Opens
into
read
Murray
present situation and outlook
another
which
problem
neither
monetary nor fiscal policy is well
equipped to solve.
This is
a
a
rising at the same time.
Economic
that such a
cannot
circumstance
than
more
a
prevail
for
short period of time,
and must, in effect
be self-cor¬
recting. If such a correction were
occur,
that
be
however, it is important
directed
economy
fiscal policies
and
monetary
so
as
to
prevent
spiraling
from
is
business
conducting
from
offices
cost-
John
John
prices and unemployment may be
theory generally says
Schindel
securities
at 217 Broadway, New York City,
price-push condition which it is
felt could develop to the point that
to
Street, New
City, to engage in a securi-
ti^s business
general economic and revenue
needs of the country.
the
down¬
ward.
a
B.
B.
Sullivan Opens
Sullivan
securities
is
business
conducting
from
offices
at 135
Broadway, New York City,
under
the
firm
of
name
John
Two With Reynolds
(Special to The Financial Chronicle)
SACRAMENTO, Calif.—William
H. Heckes and Marvin D. Wadley
have
been
added
to
the
staff
of
Reynolds & Co., 919 Tenth Street.
Joins F. I. Du Pont
Revel Miller Adds
(Special to The Financial Chronicle)
CHICO,
Leethem
with
He
B.
Sullivan Company.
(Special to The Financial Chronicle)
fiscal
we
9fficers are virgB Dickman, President; Hugh Shockley, Vice-Pres•ident,
and
Tyler
F.
Dixon,
$1
as
including trust
1958 the cash surplus
about 4.5 months.
nondurable
from
of
modified programs
fund accumulations—is likely to be
about $4 billion, not much differ-
sales
—
30,
with offices at 3010 Hudson Street
to engage in a securities business.
Anglo-American Sees.
figures,
Some
During the past 18 months, the
Federal Government, including the
Federal Reserve, has pursued policies of restraint in an effort to
sures.
low
as
conjectural
and represent
Estimates / of
tivity.
curb
fall
may
These
highly
from
would
current
Special to The Financial Chronicle)
(
DENVER, Colo.—American Un¬
derwriters, Inc. has been formed
billion.
rises
of mag¬
the past year
average
the
ending next June
year
however
advisable.
range.
price
order
same
1957
is,
fiscal
in
Form Amer. Underwriters
a
analysts now expect.
Most
projections for 1957 include ex¬
about
reduction
no
surplus
to
most
of
istrative
to
Product
billion
noted,
present tax rates, and high levels
of economic
activity. The admin-
ennn
This assumes, of course, that prices
will continue to rise in 1.957 as
pectations
in
such
Potentials
National
and
con¬
in 1957.
appears
Gross
sharply, net
$1
year
should
con¬
should
Versus
total, it
1957
bring
Unless
worsen
$2 billion per
foreign
to
investment
assum-
been
billion
$1.7
ditions abroad
in¬
fiscal
as
minus one:half
a
in
third quarter of 1956.
foreign
and
have
for
already
force
The effects of domestic
surplus
1958 of around $2 billion,
A
International Business Spending
budget
ing increases in expenditures
constantly.
In the minds of many, the deci¬
products.
1957
able.
auto
and
inventories will be
generally optimistic appraisal of
private investment outlook for
the
as
development
a
the present state of
1956, for example, the stock-sales
pearing
must
been
building up rather rapidly over
the past year. Net change in inven-
September,
de¬
such
as
and in the stock-saies ratio.
been
ratios very quickly—
leading to a reversal of inventorv
policy.
We see no evidence of
In
trends
about the
sonally
have
stock-sales
bigger.
construction contract awards, sea¬
adjusted,
healthy, holding down or re¬
ducing stock-sales ratios as sales
rise in coming months. Any slackenig in sales could bring excessive
mand
Starts in 1957
housing outlook?
housing starts are ex¬
ture for
editor of
be
What about the
♦urns up.
It should be said that
the farm outlook for 1957, on the
similar
Some moderation would
purposes.
and fiscal restraints to reduce de¬
moderately in 1957 if farm income
invest¬
availability of funds for inventory
monetary
outlook.
1 Million Housing
fourth
fixed
of
seems
plant and
the
McGraw-Hill
a
in¬
ing prices have given evidence <>r
and
farm machinery and equipment in
of
survey
the
restricted
added
the short-run
on
to
and
long-run economic ba¬
rary excess
item.
Commerce-SEC
business
nual
Much
reflec¬
a
run—
due
cost
Ris¬
output
els,
Product.
the
over
the
continued to expand in 1956.
the
about
in
de¬
in
^
1
vestment has
capital
somewhat
crease
Turning to the international as¬
pect of business spending we note
that world production and trade
rise
The
I
inventory buildlikely to continue, though
build-up may be mod¬
tne rate of
be
the
for
contributed
25 to 30%
of
past and planned increases in
production capacity seem to ex¬
nomic
War II decade.
rate
of
this
greatly to the eco¬
stability of the post-World
contin-
a
The possible influence
in
the amplitude of fluc¬
in fixed
investment has
the
rising
another
—
next year or two—the short
re¬
remarkably
costs
spending.
years, only inventories have
exhibited this old trait. Fixed in¬
has
been
faster
cent
vestment
indi-
depressing influence
Prices of capital
a
equipment may have
of great cyclical
cause
movements in the
economy.
sales
on
figures
factor
residential"
tions.
inventories. Tradi-
and
recent
investment.
on
business investment in the form of
tionally, of course, fluctuations in
category of demand reflected
in prices of finished
as
These trends in
up seem
erated
-
cate.
Again, narrowing of profit
margins usually has been thought
Plant, .equipment,
this
,
profit margins
narrowed
ceed
The third category of demand is
character..
similar manner, recent rises
costs may have been greater
a
mand.
Investment
tendency
a
businessmen to eliminate
marginal
a
pros¬
demand
consumer
policy will have
>,_
•
narrow-
er
32
Calif.
has
Francis
was
Gerald
—
become
I.
du
B.
associated
Pont
&
Co.
formerly local representa-
tive for Mutual Fund Associates.
LOS ANGELES,, Calif.
—
Davis
S. Spencer has been added to the
staff
South
of
Revel
Spring
Miller
Street,
&
Co.,
650
member of
Exchange.
the Los Angeles Stock
34
The Commercial and Financial Chronicle
(2310)
.
Thursday, November 29, 1956
.
.
* INDICATES
Now
Securities
ir Aeronautic & Automotive Insurance Agency, Inc.
Nov. 20 (letter of notification) 150,000 shores of class A
common
($1
Price—At par
stock.
share).
per
Proceeds
—For expenses
incident to operating an insurance com¬
Office—2561 North Clark St., Chicago, 111. Under¬
pany..
in
Registration
selling stockholders.
Underwriters —Spencer Trask &
Co., Lee Higginson Corp., and Homer O'Connell & Co.,
all of New York; Laird, Bissell & Meeds, Wilmington,
Del.; and Chas. A. Parcelis & Co., Detroit, Mich.
Nov. 7
Beckjord Manufacturing Corp.
12 (letter of notification) $50,000 of series A 6%
bonds, $50,000 of series B 6% debenture
bonds and 207,500 shares of common stock (par 10 cents)
subordinated
to
shares of class B
stock from Dec. 1, 1959 to June 30, 1966). Price—At par
($1,000 each) and accrued interest. Proceeds—For ma¬
chinery, equipment and working capital. Office—Westfield, N. Y. Underwriter—None.
consisting of
writer—None.
Oct.
* Ajax Flexible Coupling Co., Inc.
(letter of notification) $100,000 of 5% convertible
debentures due Nov. 30, 1976 (convertible
at
of $1,000 of debentures for 80
rate
debenture
offered
be
in
units
as
follows:
100
"A"
units
(each
$500 "A"
bond and 50 shares of stock);
100 "B" units (each consisting of a $500 "B" bond and 50
shares of stock); and 1,975 "C" units (each consisting
of
a
shares
100
of
stock).
Price:
Of series
"A"
and
"B"
units,
$500 each; and of series "C" units, $100 each.
acquire or lease plant; for dies and ma¬
chinery; production equipment and materials; inven¬
tory; and working capital.
Business — Manufactures
Proceeds—To
Federal
American
Corp., Killeen, Texas
Finance
Sept. 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
6hare. Price—$55 per unit. Proceeds—To purchase used
car paper and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.
Oct. 26 filed
Heritage
Insurance
Life
(par $1),
of which
575,000 shares are to be offered to the public;
435,000 shares to agents and employees of company from
Nov. 15 to Dec. 16; and
189,375 shares to employees
pursuant to certain stock purchase options to be granted
by the company. Price—To public, $2 per share; and to
employees, $1.81 per share. Proceeds—For working cap¬
Office
ital.
Jacksonville, Fla. Underwriter
Carrison, Wulburn, Inc., of Jacksonville, Fla.
this week.
—
Pierce,
Offering
—
—Expected
* Arden Farms Co.
,
(letter of notification)
5,555 shares of preferred
Proceeds—To
liquidate obligations accruing in the regular course of
business.
Office—1900 W. Clauson Ave., Los Angeles,
Price
—
($54 per share).
par
Underwriter—None.
Calif.
Arkansas
Nov.
At
Louisiana
16 filed
Co.
Gas
(12/10-13)
(par $5).
Price-—To be supplied by amendment.
Proceeds-—To
W. R. Stephens Investment Co., Inc., the selling stock¬
holder.
Underwriter—Eastman Dillon, Union Securities
840,000 shares of common stock
& Co., New York.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes. Underwriter — To be
by amendment.
Atlas Credit
June
11
amount.
Corp., Philadelphia, Pa.
$600,000 of 6% convertible subordinated
15, 1968. Price—100% of principal
filed
debentures
due June
retire
Proceeds—To
indebtedness
of
the
com¬
pany to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
market.
Proceeds—For
ton, D. C.
investment.
Office—Washing¬
Distributor—Automation Development Secu¬
rities Co., Inc.,
Automation
Industries
Treasurer.
Barber's
Super Markets, Inc.
Oct. 15 (letter of notification) 21,721 shares of common
stock (par $10) being offered to stockholders on a basis
one
Oct.
new
Box
share for each two shares held
15, 1956; rights to expire
share.
Proceeds—For
on
Dec. 1.
working capital.
515, Albuquerque, N. Mex.
as
of record
Price—$11 per
Address—P. O.
Underwriter—None.
>'
Baton Rouge Water Works Co.
Sept. 11 (letter of notification) 6,946 shares of common
capital stock (no par). Price—$43 per share. Proceeds
—For extensions and betterments to water
system. Office
—131 Lafayette St., Baton
Rouge,
La.
Underwriter—
None.
Inc.,
Grosse
Point,
Md.
(12/10-14)
15
filed
Price—To
be
filed
25,000 shares of 5.60% cumulative pre¬
(par $100), of which 1,430 shares are being
offered to common stockholders of record Nov. 20 (other
than
Eastern
Utilities
Associates, the parent)
on
a
share-for-share basis; rights to expire on Nov. 30. Price
—$101.82 per share, plus accrued dividends. Proceeds
15
bank
reduce
—To
Underwriters—Salomon
loans.
&
Hutzler; Eastman Dillon, Union Securities
and Wood, Struthers & Co., all of New York.
it Bridgehampton
Nov. 20
&
Bros.
Co.;
Price—$5
per
share.
Proceeds—For
con¬
struction, improvements, etc. Business—To construct and
an
automobile road racing course.
Address—
operate
P.
O. Box
506, Bridgehampton, L. I., N. Y. Underwriter
'
—None.
.
,
Bridgford
Packing Co., Anaheim, Calif.
|
Aug. 13 (letter of notification) 222,222 shares of common
stock (par $1).
Price—$1.35 per share.
Proceeds—To
obligations, purchase equipment, etc. Office—1308
No.
Patt
Street, Anaheim, Calif.
Underwriter—J. D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.
pay
Brookridge
Development
Corp.
;*
(letter of notification) 300,000 shares of common
($1 per share). Proceeds—For work¬
ing capital. Office—67-12 62nd St., Ridgewood, Queens,
N. Y. Underwriter—Wagner & Co., New York.
of the management type.
Underwriter—Brown Manage¬
Co., 833 Alaska St., Honolulu, Hawaii.
Burma
22,000 shares of
supplied
by
stock
common
amendment.
(par $1).
Proceeds—To
Shore
Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
filed
Proceeds
For
—
Chicago, 111.
ie Consolidated Credit Corp.
Nov.
5
(letter of notification)
nated debenture bonds
and
be
named
later.
Burroughs Corp., Detroit, Mich. (12/3)
9
filed
$30,154,700 of convertible subordinated
Nov.
debentures due Dec.
tion
Cooperative Association,
Kansas City, Mo.
Oct. 25 filed
180,000 shares of 5V2% preferred stock
(cumulative to extent earned before patronage refunds)
and 20,000 shares of 4% second preferred stock (cumula¬
tive
to
extent
earned
before
employees.
For
•
Price—At
general
1, 1981, to be offered for
corporate
Lehman
and
for
shares
on
of
the
basis
stock
subscrip¬
of
held
$100
of
expansion
program.
Underwriter—
Continental Casualty Co., Chicago, III.
28 filed 625,000 shares of capital stock
(par $5)
being offered in exchange for outstanding capital stock
cf
National
Fire
of
The
stock.
of
Insurance
Continental
is
offer
Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5M>% sinking fund debentures
1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,0.00 of
and
&
Co.
Offer
announced
is
now
To
be
supplied
$4,100,000
center
sites
will
and
a
be
by
amendment.
used
Penn
to
Fruit
acquire
super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
and
and develop additional sites for related real
activities, and for general corporate purposes.
New York. Latter
tional
sons
300,000
selected
common
by it
at
of
of
Na¬
effective, it
was
-
Power & Light Co.
(letter of notification) 431 shares of common
stock (no par) being offered to minority stockholders of
record
16
Nov.
8
the
on
shares held;
basis
of
one
rights to expire
new
Dec.
on
share
3.
for
each
Price—$185
share. Proceeds—For new construction and working
capital.
Office—1506 Commerce Street, Dallas, Texas.
per
Underwriter—None.
Dallas
Power
&
Light Co.
(12/3)
Nov. 7 filed $10,000,000 of first mortgage bonds due 1980.
Proceeds
To repay bank loans and for construction
-
—
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
First Boston Corp.;. Salomon Bros. & Hutzler; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
program.
The
&
Beane (jointly); Eastman Dillon, Union Securities &
Co.; Kuhn, Loeb & Co.; Equitable Securities Corp.; Blair
& Co. Incorporated and Baxter, Williams & Co.
(jointly);
Lehman
(EST)
&
Co.
;
Brothers.
Bids—To
be received up to
noon
Dec. 3 at Room 2033, Two Rector Street, New
N. Y.
: ■ : •'
/.
on
York 6,
.
Dalton
Finance, Inc., Mt. Rainier, Md.
(letter of notification) $250,000 of 6%
debentures
25,000 shares of
be
to
offered
shares
of
(with
class A
in
units
stock
(par 50 cents) 1
debenture and 50
$500
one
stock., Price—$525
10-year i
attached) and
warrants
common
of
working capital.
Underwriter
Washington, D. C.
unit.
Proceeds—For
Whitney & Co., Inc., '
per
—
.
Power
$100).
(par
Light Co.
Proceeds-^-To
construction.
new
&
(12/11)
[".
80,000 shares of cumulative preferred stock
repay
Underwriter
loans
bank
To
—
be
and
for
determined
Probable bidders: White, Weld
Co. and Shields & Co. (jointly); Kidder, Peabody &
Co., and Harriman Ripley & Co., Inc. (jointly); Kuhn,
Loeb & Co. and Ladenburg, Thalmann & Co. (jointly);
About
Blair
rate
the accept¬
23
Price
—
upon
Dallas
Oct.
debentures.
Underwriter
at
share
one
unconditionally
Nov. 28.
on
Proceeds
acquire
Hartford
for
at
Union Securities
shopping
of
will
Merrill
—
Co.
stock
conditional
least 51% (255,000 shares) of National stock 1
expire on Nov. 30. Dealer-Managers—William
Blair & Co.; The First Boston Corp.; and Lazard Freres
ance
due Aug.
—
Proceeds—
Underwriter—None.
&
Brothers, New York.
Centers
seven
be
to
Sept.
by competitive bidding.
20
on
loans
share).
per
purposes.
bank
stockholders
each
($25
par
Delaware
for
patronage refunds)
sold directly to members and others by the Association's
Nov. 14 filed
debentures
:
Consumers
of
common
"
Underwriter—None.
record
Nov. 30, 1956; rights to expire on Dec.
17, 1956. Price
—To be supplied by amendment. Proceeds—To reduce
by
-
:V
Office—33 West 42nd St., New York 36, '
factoring.
N. Y.
Sept. 28
and
$300,000 of 7% subordi¬
1, 1966. Priced—At par
due Nov.
fin denominations of $100, $500 and $1,000). Proceeds—
To make loans, etc.
Business — Commercial financing
subordinated
Price—At par ($1 per share). Pro¬
equipment,, exploration, drilling, working
other general corporate purposes. Under¬
For
writer—To
par ($10 per share).
capital, etc. Underwriters—
Cruttenden, Poaesta & Co., both
working
Julien Collins & Co. and
of
shares to promoters.
capital
(12/11)
100,000 shares of 6% cumulative and par- '
ticipating preferred stock. Price—At
ceeds
—
Industry Developers,
tive
Investment
Co., Ltd., Honolulu, T. H.
July 11 filed 60,075 shares of common stock (par $1).
Price—At net asset value, plus a selling commission of
7V2% of the offering price. Proceeds—For investment.
Business—A diversified, open-end investment company
ment
Underwriter
ISSUE
*
stock. Price—At par
Brown
REVISED
^ Commercial Discount Corp., Chicago
Nov. 21
tional
Road Races Corp.
PREVIOUS
Inc.
shares
(letter of notification) 55,075 shares of common
(par $1).
estate
Beauty Counselors
Nov.
West
Blackstone Valley Gas & Electric Co.
Washington, D. C.
Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and
of
Office—7
Underwriter—Berry &
operating capital.
Oct. 29
Atlantic Oil Corp., Tulsa, Okla.
named
heaters.
Co., Newark, N. J.
stock
Nov. 19
stock.
convector
River, N. J.
ferred stock
Co.
1,199,375 shares of common stock
electric
Water Street, Toms
Aug.
Fain is President.
American
"Unit-Inch"
ADDITIONS
SINCE
ITEMS
•
Incorporated, Philadelphia
has agreed to purchase an addi¬
shares and reoffer them to ner-
$1.10 per share.
Offering—Date
Lynch,
Brothers; W. C.
The First
Pierce,
Fenner
Langley & Co.
Boston
Street,
Devall
May
16
Land
(EST)
99,
Marine
&
notes,
on
Dec. 11 at 600 Mar¬
Construction
150,000
Co.,
shares
Inc.
of
com¬
Price—$2 per share. Proceeds—For
to purchase and equip tnree boat*
and working capital.
Office—1111 No. First Ave., Lake
Charles, La.
Underwriter—Vickers Brothers, Houston,
Texas.
-
Eastman
Del.
of notification)
(par $1).
of
payments
„
Lehman
Dillon,
(jointly); Blyth & Co., Inc., and
Corp. (jointly). Bids—Expected to be
Wilmington
(letter
stock
mon
and
Beane;
& Co.
received up to 11:30 a.m.
ket
&
Statement
1
.
effective.
indefinite.
Century Controls Corp., Farmnigdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
development; expansion; equipment; and * other
cor¬
porate
purposes.
Underwriter
—
None.
Diversified
Oil & Mining Corp., Denver, Colo.
2,500,000 shares of 6% convertible nonpreferred stock, first series (par $1), and
warrants to purchase 500,000 shares of common stock
(par 10 cents) to be offered for subscription initially by
Aug.
29
common
Century Controls Corp.
Oct. 4 (letter of notification)
$150,000 of 6% subordinate
convertible debentures.
Price—90% of principal amount
(in denominations of $100 each). Proceeds
To pay
notes
payable, reduce accounts payable and to pay
—
other current
liabilities; also for working capital. Office
—Allen
Boulevard, Farmingdale, L. I., N. Y. Underwriter
filed
cumulative
a
stockholders in units of 25 preferred shares and
warrant to
per
unit
chase
purchase five common shares. Price—$25.50
(each warrant will entitle the holder to pur¬
share at any time prior to Dec. 31,
share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under¬
writer—To" be named by amendment.
one
common
1957 at $2 per
>
,
i
—None.
New York
Boston
Philadelphia
Pittsburgh
San Francisco
Private IVires
to
all
offices
Chicago
Cleveland
Chinook
Plywood,
Inc., Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—
($3,000 per share). Proceeds—For acquisition of
a
plant site, construction of a mill
building, purchase
At par
and
installation
of
machinery
and
equipment,
and
as
Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock (par
cent). Price — 10 cents per share. Proceeds
For
—
one
ex¬
ploration, development and acquisition of properties and
for
working ranital.
Co., Denver, Colo.
Underwriter—Columbia Securities
...
Volume
184
Number
5590
.
.
The Commercial and Financial Chronicle
.
(2311)
Eastern
Nov.
Industries, Inc.
filed
13
125,000
(12/5)
shares
of
Flakewood Corp., San
Francisco, Calif.
14 filed 100,000 shares of common
stock.
-
cumulative
convertible
Nov.
At
Price—*
preferred stock (par $10). Price—At par. Proceeds—For
expansion program. Underwriter—Blair & Co. Incorpor¬
($10 per share). Proceeds—For construction of
manufacturing plant and to provide working capital.
ated, and Winslow Cohu
Underwriter—None. Robert
&
Stetson, Inc., both of New
York.
Eastern
Life
&
Casualty Co., Inc.
Nov. 12 (letter of notification) an undetermined number
of shares of common stock (par one
cent) to be offered
to stockholders.
Price
$1 per share.
Proceeds — For
Office—105 West Grace St., Richmond,
Underwriter—None.
Va.
E.
Evju is President.
Frank
B.
Bateman, Ltd., Palm Beach, Fla.
Florida Power &
Nov.
13
1986.
Light Co. (12/11)
$15,000,000 of first mortgage
filed
bonds
due
Proceeds—To repay bank loans and for construc¬
tion program.
Eastern-Northern Explorations, Ltd.
June 4
(regulation "D") 500,000 shares of common stock
Price—60 cents per share. Proceeds—For gen¬
(par $1).
eral
corporate
Office—Toronto, Canada. Un¬
purposes.
derwriter—Foster-Mann, Inc., New York.
Etarnalite, Inc., New Orleans, La.
(12/10-14)
Sept. 24 filed 200.000 shares of class A
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder,
Peabody & Co. (jointly); The First Boston Corp.; Blyth
& Co., Inc.; White, Weld &
Co.; Lehman Brothers. Bids
—Tentatively expected to be received up to 11:30 a.m.
(EST) on Dec. 11.
Freiberg Mahogany Co.
slock
1971
laboratory tests, and testing equipment.
Vickers Brothers, New York.
1
ktock
holders
stock; the remaining $500,000 of deben¬
to
to
to
the
on
be
offered
basis
of
198,900 shares of class B
for
85
subscription
by
stock¬
shares
for every 109- shares
expire 30 days after date
($1 per share). Proceeds—
offering.
Price—At
par
For
general corporate purposes.
Office—1055
Ave., Garden City, N. Y. Underwriter—None,
UEW
be
Stewart
sale
of
be
Texas
Industries, Inc., which
Freiberg's
outstanding
common
supplied by amendment.
owns
stock.
Proceeds—From
of units to retire
short-term loans and for
working
capital, etc., and from sale of debentures to Texas Indus¬
tries to retire a subordinated
promissory note payable
to the latter firm.
Office—New Orleans, La.
Under¬
waters—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc.,
and
ISSUE
sold
75%
Price—To
of class A stock held; rights to
of
and 150 shares of
tures
Manufacturing & Engineering Corp.
(letter cf notification)
capital
11 filed $2,000,000 of subordinated
debentures due
and 450,000 shares of common stock
(par 10 cents),
of which $1,500,000 of debentures and all of
the stock
are to be offered
publicly in units of $500 of debentures
about
Federal
Oct.
Underwriter—
; General Credit,
Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated
sinking 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 debentures
Dallas, Texas;
Russ &
Co., Inc., San Antonio. Texas.
CALEfJD
and 40
warrants.
Price—$500 per unit. Proceeds—For
expan¬
working captal. Underwriter
None named.
Offering to be made through selected dealers.
sion
and
—
General
Telephone Co. of California (1/10)
500,000 shares of 5% cumulative preferred
(par $20). Price—To be supplied
by amendment.
Nov.
13 filed
stock
Proceeds—To repay
bank
loans
and
for
construc¬
new
Underwriters—Paine, Webber, Jackson & Curtis.
York, and Mitchum, Jones &
Templeton, Los
New
Oct.
common
50
—
tion.
~
cents).
Price—$4.50 per share.
Proceeds—To
lean; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
(par
repay
Genco Oil Co., Inc.
.7
Aug. 24 (letter of notification) 55,000 shares of
common
stock (par $1).
Price—$5 per share. Proceeds—For oil
development expenses. Office
1907 Broadway
Ave.,
Scottsbluff, Neb. Underwriter
Edward C. Colling,
Scottsbluff, Neb.
—
★ Florida Growth Fund, Inc., Falm Beach, Fla.
Nov. 23 filed 2,000,000 shares of common stock. Price—
$5 per share. Proceeds—For investment. Underwriter-
—
working capital.
par
35
Angeles, Calif.
★
General Telephone
Corp.
Nov. 20 filed
800,000 shares of
Price—To be supplied
by
additional
investments
(12/12)
stock
common
amendment.
in
(par $10).
Proceeds—For
stock
equities of
subsidiaries and for
temporary advances to subsidiaries
for
common
reduction of their bank loans
and for
in
use
tion with the
connec¬
1957 construction
program; also for other
general corporate purposes.
Underwriters—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster
Securities
Corp., both of New York; and
Mitchum, Jones & Tem¬
pleton,
Los
Angeles,
Calif.
★ Genifco, Inc., Los Angeles, Calif.
(12/13)
Nov. 23 filed $300,000 of
12-year 6% subordinated deben¬
tures due Dec.
1, 1968 (with stock purchase warrants
attached) and 33,000 shares of common stock
(par $1),
of which 23,000 shares are
to be offered for the account
of
a
selling
stockholder.
Price
To be supplied
by
Proceeds—To retire short-term
borrowings,
for machinery and
tools, and to increase inventories and
for
other
general
corporate purposes.
UnderwriterWilson, Johnson & Higgins, San
Francisco, Calif.; and
Lester, Ryons & Co., Los Angeles, Calif.
—
amendment.
November
29
(Thursday)
Pennsylvania R. R.
(Bids
$9,303,000
•
Power
Debentures
Brothers)
&
Light
noon
Co
$10,000,000
;
stockholders—underwritten
Forgan & Co.) $10,468,500
Stores,
by
Forgan
Inc
(Offering to stockholders of Foremost Dairies, Inc.—under¬
by Alien & Co. and Dean, Witter & Co.) 630,000 shares
(Mohawlc
(Bids
Inc
Sierra
Co.,
Peerless Life Insurance Co
(Newborg
&
(Tuesday)
EST)
11
December
Eastern
(Blair
5
Co.,
invited)
$3,000,000
Co
a.m.
Bonds
EST)
$20,000,000
...Equip, Trust Ctfs.
noon
Power
11
CST)
$9,300,006
a.m.
$30 000,000
Bonds
EST)
$3,000,000
(Wednesday )*'V: 7
Corp
i__Common
Webster
800,000
Texas Eastern Transmission Corp
(Dillon,
Read
&
Stores
13
&
$40,000,000
Realty
&
and
and
Lester,
33,000
Common
Ryons
shares
of
&
Corp.
Co.
and
Co.)
December
Consumer
(Van
(Wednesday)
Rose
Marie
Bonds
Lehman
Brothers)
$25,000,000
17
(Monday)
Finance
Alstyne,
Noel
&
Corp
Co.)
.-Preferred
$750,000
Reid
(Van
Incorporated, and Window, Cohu & Stetson, Inc.)
Holman
Co.,
Inc.)
$499,996
Inc
(Perkins
,
&
Alstyne,
Noel
&
Co.,
Inc.)
Co )
$2,250,000
(Offering
to
&
(Bids
Co.,
National
11
Inc.)
b3
underwritten
183,333
Northern
by
Pacific
(Eids
Co
Debentures
to .stockholders—fo
Service
(Merrill
Electric
be
underwritten
&
Gas
December
6
'
-
-
Common
1,000,000
(Eastman
Dillon,
10
(Bids
.
Trask
&
&
laird,
Co.;
&
Co.)
840,000
(Leo
shares
22,000
Bank
(Lec
and
Homer
Chas.
O'Connell
A.
Higginson
i
Debentures
and
P.
W.
Brooks
invited)
...Preferred
(Offering
1957
be
(Tuesday)
and
130,000
P.
(Bids
to
&
Co.
General
Airlines
Locb,
People's Finance
W.
Ercoks
&
(Paine,
(Wednesday)
Common
stockholders—to
to
Ross)
&
10,
be
underwritten
by
$1,000,000
1957
Webber, Jackson
Jones
(Thursday)
&
&
Curtis
Templeton)
and
Co.)
about
Co.
Louisiana Power & Light Co
(Bids
(Bias
Inc.)
Kimbail & Co.)
to
to
be
invited)
v
about
be
Ry._
working capital.
hotel.
Business—
Underwriter—None.
Co^nmer
Finale
Corp.
(12/17-19)
26 filed 75,000 shares
of 60-cent convertible
pre¬
ferred stock (nar S10). Price—To
be supplied
by amend¬
ment.
Proceeds—To reduce bank loans.
Underwriter
Van Alstyne, Noel &
Co., New York.
★ Handy &
Harman,
New York
9
(letter of notification) 16,000 shares of
common
(par $1) to be offered to employees.
Price—$6.75
per share.
Proceeds
For general
corporate purposes.
Office—82 Fulton
St., New York 38, N. Y. BusinessFabricating, processing and refining of precious metals.
stock
Underwriter—None.
KamsonviJIe Telephone Co.
26 (letter of
notification) 1,850 shares of common
stock (par $1C0
being offered to stockholders of records
on
Nov. 6, 1956 for a period of 30
days on the basis of
Preferred
$500,000
share for
new
eacn
two shares held
(with
an
over¬
privilege).
Price—To
stockholders, $102
share; to residents of Illinois, $106 per share. Pro¬
ceeds—To retire bank
loans, pay installation cost and
for construction of other
plants. Office—Waterloo, 111.
per
Oct.
2
-
Breckenridge
&
filed
Stores,
Co.,
240,000
per
St.
Inc.
shares
of
common
stock
(par $1).
share.
Nov.
23
filed 278,733 shares of 5%%
cumulative con¬
voting preferred stock, series A (par
$25) and
278,733 shares of common ^stock (par
$2.50) to be of¬
fered in exchange for
outstanding capital stock of SavoyPlaza, Inc., at the rate of three shares of series A
vertible
pre¬
ferred
and
for
unless
Bonds
$20,000,000
invited)
about
Gas
to
$4,650,000
Electric
be
invited)
Co
January
Mountain
29,
States Tel.
(Bias
to
be
1957
&
Bonds
$10,000,000
(Tuesday)
Tel. Co
invited)
three
each
shares
class
A
of
and
common
class
B
stock
sh&re
of
of
Hilton
Savoy-
exchange
least
80%
offer will not become effective
of the class A and class B stock of
Savoy-Plaza is tendered.
Oct.
Light & Power Co.
8
(letter of notification) 6,695 shares of common
(par $25) being offered to stockholders of record
Oct. 24, 1956, on the basis of one share for
each eight
shares held on Oct. 24, 1956, and also to
employees at a
stock
(Tuesday)
&
The
at
Home
Equip. Trust Ctfs.
January 22, 1957
Southwestern
(Bids
$7,500,030
Corp
(Paul C.
(Tuesday)
Common
&
class A
building,
and
resort
Nov.
Hotels
Mitchum,
$10,000,000
January 15, 1957
$22,481,000
Inc
Rhoades
shares of
Proceeds—To certain selling stock¬
Underwriter—Van Alstyne, Noel &
Co., New
York; and Johnston, Lemon &
Co., Washington, D. C.
★ Hilton Hotels Corp,
Telephone Co. of California—..Preferred
shares
invited)
50
Guardian Chemical
Corp.
Oct. 29 (letter of
notification) $250,000 of 6% convertible
debentures due Dec. 1, 1966. Price—At
par (indenominations of $100 each). Proceeds —
For working capital.
Office—38-15 30th St.,
Long Island City 1, N. Y. Under¬
writer—None.
Price—$9
$35,000,000
Inq.i
..Debentures
be
year-round
Hartfield
.....Debentures
invited)
1957
Leftwich
Common
Corp.
construction
Underwriter—McCourtney
$9,000,000
Commerce,
Norfolk & Western
(City of)
M.
Co.____
be
$900,000
Corp.
(Carl
new
Operates
Plaza.
Corp
Northeast
Bonds
—
$20,000,000
Memphis, Tenn.
Class A Common
Brothers)
Higginson Corp.
Montreal
of
shares
$1,000,000
Krorrex
to
January
Corp.;
Meeds;
Eternalite, Inc
Kromex
Light
January 9,
4
(Vickers
of
B
holders.
National
..Common
Co.)
units
class
Louis, Mo.
$1,280,000
Higginson
&
of
stock and
one
$7,000
Price—$10,000 per unit.. Proceeds—For pur¬
property, remodeling of present main
subscription
Equip. Trust Ctfs.
EST)
Bissell
Parceils
$7,700,000
(Monday)
invited)
be
may
(Bids
Common
&
,
Lee
about
New England Tel. & Tel. Co
1
Securitias
noon
Co.;
to
&
January 8,
S8,055,001
Beauty Counselors Inc
(Spencer
Power
(Bids
(Monday)
Co
Gas
Union
Baltimore & Ohio RR
.
Pacific
shares
(Thursday)
invited)
December
Arkansas Louisiana
—Equip. Trust Ctfs.
invited)
Equip. Trust Ctfs.
be
to
be
Pacific Power & Light Co
$6,000,000
New York Central RR
(Bids
for
one
Debentures
Brothers)
Colorado in
shares
Oct.
(Wednesday)
Ry
to
(Bids
Co
Lynch, Pierce, Fenner & Beane)
U. S. Industries Inc
(Leljman
$5,340,000
January 7, 1937
$20,001,030
by Dillon, Read & Co. Inc.) $28,285,600
Public
..Equip. Trust Ctfs.
invited)
Bonds
EST)
a.m.
be
to
December 19
shares
Cash Register Co
(Offering
(Bids
...Common
stockholders—to
Perkins
(Tuesday)
$1,000,000
Ling Electronics Inc
Long Island Lighting
18
Atlantic Coast Line RR....
Debentures
&
2,950
chase of
Nov.
Common
December
Preferred
(McDonald,
Texas and
stock,
—
K D I Corn
Electronics
filed
(par
★ Guardian
stock
$1,250,000
Ling
Lodge, Inc., Durango, Colo.
5,000 shares of class A voting common
$1), 295,000 shares of class B
non-voting
common stock
(par $1), and $700,000 of 4% debentures
due Dec. 31,
1975, to be offered for sale in the States
23
stock
shares
(Thursday)
Higgins
debentures
Sachs
Inc.)
Securities
Debentures
Debentures and
Johnson
(Goldman,
Co.
__J
Genisco, Inc.
Guardian
Preferred
Gold Mountain
Aug.
of
Co
December 12
May
Industries, Inc
&
11:30
Telephone
Debentures
EST)
a.m.
Co.)
$2,805,000
Michigan Bell Telephone Co
(Bids
&
Preferred
Webber, Jacltson & Curtis; Stone &
Corp., and Mitchum Jones & Templetoni
(Wilson,
Emjip. Trust Ctfs.
noon
b.i
'
(Paine.
$300,000
(Bids
to
December
$287,500
Erie R. R.
Pocles.a
debenture.
and
..Common
Co.)
December 4
Preferred
...
Crntlenden,
& Light
Pacific
.Debentures
Valley Investing Co.; 'Allen &
Gregory & Sons) $694,900
(Tuesday)
Corp
and
Illinois Central RR
General
Common
Airlines,
Co.
Delaware Power & Light Co
Common
—
written
Mohawk
&
(Bids
stockholders—underwritten by
&'Co.) 610,664 shares
common
Glore,
Discount
Collins
(Bids
^.Debentures
Libby, McNeill & Libby__
(Offering to
(Julien
Florida Power
Bonds
EST)
common
Glore,
Lucky
by
830,154,700
Libby, McNeill & Libby
to
Commercial
(Bids
(Bids
(Offering
;
(Monday)
stockholders—underwritten
common
Lehman
Dallas
•*;;$;/
•
11
$1,000,000
Burroughs Corp.
to
December
Equip. Trust €tfs.
EST)
noon
December 3
(Offering
^
•
rate
not
to
exceed
10%
of
annual pay; warrants
expire
17, 1956. Price—$40 per share. Proceeds—For ad¬
plant facilities and improvements.
Office—
810 Ninth St., Greeley, Colo.
Underwriter—None.
Nov.
ditional
...Debentures
S35,000,000
Continued
on
page
36
Z6
The Commercial and Financial Chronicle
(2312)
Continued from page
in
Nov.
to
at
the
subscription by stockholders of record Nov. 14, 1956
the ratio of one new share for each seven shares
of Nov. 29; rights to expire
Price—At par (S5 per
Proceeds—To pay outstanding short-term bank
Office—107 Valley Street, Emporia, Va. Under¬
share).
loans.
rate
of
one
share
new
for
each
six
—
To
&
shares
Co.,
reduce
held
bank
Chicago,
ill.
Life Insurance Co. of South Carolina
Oct.
filed
15
339,600 shares of
common
for
(no
stock
to be
offered for subscription by stockholders of record
Imperial Oil, Ltd., Toronto, Canada
18 filed 1,504.271 shares of no par value capital
*;tcck being offered for subscription by stockholders of
record Nov
13, 1956 on the basis of one new share for
?ach 20 shares held; rights to expire on Dec. 4, 1956.
Standard Oil Co. (New Jersey), which owns 69.64% of
the outstanding Imperial stock is said to have indicated
that it intends to subscribe to its portion of the offering.
Price—$44 (Canadian) per share. Proceeds—For work¬
Sept.
12,
&
holders at the rate of one new share for each six shares
held.
cents
10
at
per
oione.
Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc.
(jointly); Blair & Co. Incor¬
porated and Baxter, Williams & Co. (jointly); Smith,
Barney & Co. Bids—Expected to be received up to 11
a.m.
(EST) on Dec. 5 at City Bank Farmers Trust Co.,
2 Wall Street, New York 15, N. Y.
* Longren Aircraft Co.,
ceeds—To reimburse
in
Corp., Rochester, N. Y. (12/5-6)
81,428 shares of 7% participating cumula¬
tive preferred stock (par $5), of which 71,428 shares are
Oct.
Underwriter—McDonald, Holman &
Manager
—
California
Fund
sales load of
investment. Invest¬
Co., of
Kinney Loan & Finance Co.
(letter of notification) $150,000 of 6% sinking
£und capital debentures, series A, due
Sept. 1, 1971. Price
$1,000
each.
Lincoln, Neb.
Nov.
due
21
Corp.,
filed^ $1,000,000 of 6%
1976.
Price—To
ceeds—To purchase
be
Ohio
(12/10-14)
convertible debentures
supplied by amendment.
Pro¬
21
Lucky Stores,
one
new
share for
Inc.
14
mon
steel
aluminum
and
J.
specialty products. Under¬
Inc., 15 William Street, New
Montague,
Inc.
determined
Shields
&
—At market.
Proceeds—For investment.
National
By-Products, Inc.
June 19 (letter of notification) 2,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To pay
Federal
estate
taxes.
Moines, Iowa.
Moines,
National Cash
Office—800
Bankers
Irust
Bldg.»
Underwriter—T. C. Henderson & Co.,
Iowa. U
Register Co.
(12/5)
Nov. 9 filed $28,285,600 convertible subordinated deben¬
tures due Dec. 15, 1981, to be offered for subscription,
by
stockholders
common
rate
of
of
record
$100 of debentures for
Dec.
each
4,
1956 at the
shares
25
accounts
inventories;
plant
Dillon*
also
of
stock
Read &
receivable,
and to carry increased
improvement and replacement of
facilities.
Underwriter—
for
other
and
production
Co.
Inc., New York.
National Life of
America, Mitchell, S. Dak.
Sept. 21 filed 86,784.7 shares of
common stocK (par $5)
subscription by each of the company's
23,279-policyholders on and as of July 31, 1956 at the rate
of
for
IVt shares of such stock and the balance of the shares
be
exchangeable for Founders certificates
pons issued by National Life as a part or
certain life insurance policies.
Price—$7.50
and
cou¬
feature
of
per share.
working capital and other coiporate pur¬
Underwriter—None.
Proceeds—For
poses.
National Old Line
Insurance Co.
common
stock
and
filed
15,
1977.
for
three shares of class
to
Realtv
Corp.
$25,000,000
Price
acquisition
be
leased
or
to
(12/13)
'
of
additional
properties
Underwriters—Goldman, Sachs
Stuart & Co.
be
2315,
•
Inc.; Morgan Stanley & Co. Bids—Expected
up 1o 11 a.m. (EST) on Dec. 4 at Room
Broadway, New York, N. Y.
received
195
Michigan
Seamless
Tube
Oct. 26tfiled 59,386 shares of
Co.
common
stock
(par $5) be¬
ing offered for subscription by
*
common stockholders
share for each four shares held
the basis of
one
of
rights to expire
Nov.
share.
20;
new
Proceeds—For
fice— South
New
South Wales, Australia
(Electricity Commission of)
Lyon.
on
general
Mich.
Roney & Co., Detroit, Mich.
Dec.
6.
corporate
Underwriter
on
as
Price—$16
per
purposes.
Of¬
—
William
Price—To be
supplied by amendment. Proceeds—To redeem $6,976,000
3V2% sinking fund bonds, of The Sydney County Council
due Jan. 1, 1957, the holders of which
may exchange
same
for the new bonds; and for construction
work.
Underwriter—Kidder, Peabody & Co., New York.
fering—Indefinitely postponed.
Of¬
★ Norfolk & Carolina Telephone & Telegraph Co.
14 (letter of notification) 2,000 shares of common
stock
(12/4)
parent,
Telephone & Telegraph Co. Underwriter—To be deter¬
mined by competitive bidding. Probable hirers*
to
•
Nov.
Brothers, both of New York.
1, 1991.
American
Libby, McNeill & Libby, Chicago, III.
(12 3)
Nov. 9 filed $10,468,500 of
convertible sinking fund
Co., Chicago, 111.
construction
Michigan Bell Teleohone Co.
'
debentures due Dec. 15, 1976. to be
offered for subscrip¬
tion by common
stockholders at the rate of $100 of
debentures for each 35 shares
held as of Nov. 29, 1956;
.rights to expire on Dec. 17. Price—To be
supplied by
amendment.
Proceeds—To reduce bank loans
Under¬
writer—Glore Forgan &
mortgage bonds due
supplied by amendment.
Nov. 13 filed $30,000,000 of debentures due Dec.
Proceeds—To
repay
advances from
Nov. 16 (letter of
notification) 2,900 shares of 5% cumu¬
lative preferred stock.
Price—At par ($100 per share).
.Proceeds—To acquire
outstanding common stock and for
general corporate purposes. Office—4 Union
St., Law¬
Underwriter—None.
general
To be
—
parent.
& Co. and Lehman
Duck Co.
—
Oct. 26 filed $7,500,000 sinking fund bonds.
Proceeds—Approximately $18,000,000 is to be used to
purchase properties from parent, The May Department
Stores Co.; to pay existing indebtedness to
parent and
per unit.
Proceeds—For operat¬
Office—1300 S. Blvd.,
Charlotte, N. C. Un¬
derwriter—None.
v
S. currency issues
supplied by amendment. Pro¬
improvements.
Underwriter—
it Mutual Income Foundation, Columbus, Ohio
Nov. 23 filed 175,000 shares of beneficial interest and
$5,000,000 of monthly purchase plan certificates. Price
<
Stores
23
Feb.
(/letter of notification)
Mass/
be
local
by competitive bidding.
Probable
Co., Halsey, Stuart & Co. Inc., Savard &
Hart and Salomon Bros. & Hutzler
(jointly 1;
Lehman
Brothers,
White, Weld & Co., Eastman
Dillon, Union Securities & Co., and Blyth & Co., Inc.
(jointly).
Bids—Expected to be received on Dec. 10.
*
17, N. Y.
ing capital.
rence,
be
Price—To
finance
postponed.
Nov.
stock
Lawrence
ceeds—To
To
(12/10)
$22,481,000 of 1956 U.
(par $2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office — Little
Rock, Ark,
Underwriter
Equitable Securities Corp., Nashville,
Tenn., and New York, N. Y.
Offering — Indefinitely
* May
Higginson Corp.
Inc., both of New York.
of two shares of class A stock
13 stock.
Price—$52.50
(City of)
filed
Nov. 15, 1955 filed 50,000 shares of class A
York
1,782 shares of class A
(par $5) and 2,673 shares of class B com¬
stock (par $5) to be offered to
employees in units
common
16
to
—
-Jr Lance,
Montreal
debentures.
to be offered
(12/3)
Foremost
writer—C.
i?rice—To be supplied by amendment.
Proceeds—To sell¬
ing stockholders. Underwriters
Lee
Nov.
Investing Co.; Allen & Co., and
tures
Corp., Cleveland, Ohio (12/10-14)
130,000 shares of capital stock (par $1).
filed
and P. W. Brooks & Co.
Under¬
purposes.
Macinar, Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For general corporate purposes. Business — Manufac¬
and
* Kromex
15, 1956 at the rate of
shares held
Frampisco, Calif.
machinery and equipment, to retire
Inc., both of New York.
Nov.
•
Nov.
Inc., Des
Underwriters—Allen & Co., New York, and Dean
Witter & Co., San
and for working capital.
Business—Aluchrome-plated kitchenware and giftware.
Underwriters—Lee Higginson Corp. 'and P. W. Brooks &
Co.
corporate
Gregory & Sons.
—
indebtedness
■minum
writers—Mohawk Valley
Des
Drug Co.
Price—To be supplied by amendment.
general
Calif.
j
Cleveland,
Underwriter—None.
For
—
Dairies, Inc. of record Nov. 30. In the ratio
of one Lucky Stores share for each 12 y2 shares of Fore¬
most
common
stock
held
(with an over-subscription
privilege); rights to expire on Dec. 17. Price—To be sup¬
plied by amendment. Proceeds — To Foremost Dairies,
Inc., the selling stockholder. Office
San
Leandro,
St., Greeley,
Corp., of Omaha
> Kromex
Lorain, Ohio.
Proceeds
customers'
record Oct.
of
Proceeds—
For working capital. Office — 911 Tenth
Colo.
Underwriter—Wachob-Bender
nnd
per
for additions to property
corporate purposes.
Office—203
Oct. 11 filed 630,000 shares of common stock (par $1.25)
to be offered for subscription by common stockholders
oept. 11
of
(12/3-7)
held; rights to expire on Dec. 19, 1956. Price—At par.
Proceeds—For working capital to finance company's ex¬
panding volume of sales and the consequent increase in
•
in denominations
Price—$25
(with an oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
—To increase capital and surplus.
Underwriters—J. H.
Goddard & Co., Imc., Boston, Mass., and
Thornton, Mohr
& Farish, Montgomery, Ala.
which John Kerr is also President.
par
Airlines, Inc., Ithaca, N. Y.
convertible notes.
filed
each three
price equal
Investment
the
company
other
Mohawk
of
Kerr Income Fund, Inc., Los Angeles, Calif.
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at $10.98 per
ment
for
•
Loyal American Life Insurance Co., Inc.
Sept. 28 filed 230,000 shares of common stock (par $1)
to be offered for subscription by common stockholders
Co., Inc., New York.
a
on
Sept. 24;
share. Pro¬
$500,000 of 6% convertible subordinated
Aug. 1, 1971. Price—At par (indenominations of $500 and $1,000 each). Proceeds-—For equip¬
ment, inventory and working capital.
Underwriter—
Quincy Cass Associates, Los Angeles, Calif.
public. Price—$7 per share. Proceeds—
machinery and equipment, working capital and other
plus
11
common
debentures due
to be offered to
Proceeds—For
and
Los Angeles
16 filed
of such price.
Ohio
West Ninth St.,
K D I
to the net asset value of the Fund,
($1
share for each 20 shares of record
one
rights to expire Jan. 2, 1957.
(par 20 cents). Price—$2.50 per share. Proceeds
sales promotions and operating capital.
Office—
411 No. Scenic Highway, Lake Wales, Fla. Underwriter
—Anderson Cook Co., Inc., Palm Beach, Fla.
a
par
Office—
Blvd., Torrance, Calif. Underwriter—
Telephone Co.
Oct. 1 (letter of notification)
4,994 shares of
stock
(no par) being offered to stockholders
—For
offered at
common
Price—At
Lorain
otock
B%%
33,000 shares of
For working capital.
—
None.
basis of
Additional shares will be
Proceeds
S. Crenshaw
24751
July 27 (letter of notification) 110,000 shares of common
—At
(letter of notification)
share).
per
located in South Central
Peru, and for general corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
York. Offering—Postponed.
bidders:
Inc.
stock to be sold to designated persons.
Joa Co.
r;hare.
of common stock (par
Price—$1.50 per share. Proceeds—To acquire
$2,400,000 the Chavin lead-zinc-copper-silver mine
cent).
for
outstanding 6%
and The First Boston Corp.
Co.
corporate purposes.
(12/5)
Dec.
19
New York
2,500,000 shares
filed $794,000 of 5%% convertible
subordinated
debentures due Aug. 1,
1966, of which $100,000 principal
amount will be offered in
exchange for
1, 1996. Proceeds—To repay bank loans and
construction program. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders; Halsey,
share at rate of ten shares for
bought. Proceeds—For working
Lauderdale, Fla. Underwriter—
Inc.,
filed
22
Oct. 26
for
6% convertible debentures due
vtfov. 1, 1966. Price—100% of principal amount. Proceeds
—To pay short-term loans and for working capital. Un¬
derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.
For
Proceeds
Underwriter—Perkins
amendment.
by
Long Island Lighting Co.
due
Oct. 4 filed $3,000,000 of
.Nov.
supplied
Co., Inc., Dallas, Tex.
Nov.
(F. L.)
be
Nov. 7 filed $20,000,000 of first mortgage bonds, series I,
/
Jacobs
general corporate purposes.
&
Investment Corp. of Florida
preferred share
capital.
Office—Fort
Price—To
—For
Corp., Spokane, Wash.
Minerals,
June
(12/5)
Nov. 5 filed 183,333 shares of common stock
(par 50
cents) to be offered for subscription by common stock¬
Aug. 24 filed $515,000 of $60 cumulative preferred stock
to be offered in units of $1,000 each and 5,150 shares of
common stock to be offered to purchasers of preferred
»?:ach
—
Securities
be supplied
To
—
Ling Electronics, Inc., Los Angeles, Calif.
Underwriter—None.
r;tock
Price
1966.
1,
Mines, Inc., Wellpinit, Wash.
(letter of notification) 223,980 shares of common
stock (par 10 cents). Price—$1.25
per share. Proceeds—
To go to selling stockholders. Underwriter
Standard
one
4,256.6 shares of capital
;tock (no par) to be offered for subscription by stock¬
holders at the rate of one new share for each five shares
held. Price—$17 per share. Proceeds — For expansion,
research and development of new products, and to pur¬
chase equipment. Office—634 Prospect Place, Brooklyn,
jht. Y.
Midnite
Nov. 6
by amendment.
Proceeds—For general corporate purposes.
Underwriter
—Perkins & Co., Inc., Dallas, Tex.
(letter of notification)
31
Underwriter—None.
Ling Electronics, Inc., Los Angeles, Calif. (12/5)
convertible debentures due
Dec.
Postal Supply Co. of New York
International
Oct.
shares of new stock
stockholders, $10 per
Nov. 5 filed $1,000,000 of 6%
.Sept. 28 filed $1,000,000 of time certificates, series B, C
vmd D. Price—At 100% of principal amount. Proceeds—
capital. Underwriter—Johnston, Lemon
'Co., Washington, D. C.
Price—To
Proceeds—For ex¬
pansion and working capital. Underwriter—None. Pub¬
lic offering will be made by employees of the company
and qualified licensed dealers.
International Bank of Washington, D. C.
-Cor working
of two
rate
held.
share
^ Mid States Finance Co.
Nov. 20 (letter of notification) 1,000 shares of
preferredstock.
Price—At par ($100 per share).
Proceeds—For
working capital. Office—656 East Broadway, Alton, 111.
share; and to public, $15 per share.
Underwriter—None.
ing capital and expansion.
at the
1956
each
for
Oct
bids has been set.
par)
writer—None.
Thursday, November 29,19©6
Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans
and for construction program.
Underwriter — To be
determined by competitive bidding!
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date
Price—To be
Dec. 17.
on
supplied by amendment. Proceeds
loans.
Underwrier—Glore, Forgan
rights to expire on Nov. 30.
held-
(12/3)
610,664 shares of common stock (par $7)
be offered for subscription by common stockholders
as
25 filed
III.
filed
9
Telephone & Telegraph Co. of Virginia
46.080 shares of capital stock being offered
Home
Oct
for
McNeill & Libby, Chicago,
Libby,
35
..
.
C.
a
to
be
offered
one-for-five
Proceeds—For
other
debts
for
basis.
the
and
subscription by stockholders
Price—At
retirement
additional
of
new
par
a
($100
per
short-term
plant.
on
share).
note
and
Underwriter—
None.
Northeast
Nov.
par
20
filed
value
Airlines, Inc.
an
(12/10-13)
undetermined number
common
stock
(for
an
of
shares
of
$1
aggregate of approxi¬
mately $7,500,000), of which approximately 44% of the
shares are to be offered for subscription
by common
stockholders other than Atlas Corp.,
approximately 6%
of the share
to
Atlas Corp. and the balance of the
shares,
50% of the offering, will be offered to the
Price—To be supplied by amendment. Proceeds
or
public.
—For
expansion
aircraft
and
of
related
operations;
equipment;
toward
and
payment
for
general
of
10
cor-
Volume
Number
184
5590
.
.
The Commercial and Financial Chronicle
.
'
.
porate purposes.
&
Co., New York.
of
shares
to
by
Ocean City
other
stockholders
which
1976,
and
to
remain
of which
Pier Corp., Berlin, Md.
1,
Office—Los
and
Noel
operation
of amusement pier. Under¬
director, of Johnstown, Pa.
of Whaleysville and Ocean
City, Md., is Chairman of the Board.
writer
Lt.
Paul
—
Col.
James
Korns,
A.
Angeles, Calif.
Co., New York.
&
St.
pire
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
—The
and
sale
of
.
Mining Corp., Montreal, Canada
Oct. 15 filed 900,000 shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be
supplied by amendment.' Proceeds — For exploration
Underwriter—To
costs.
be
later.
named
Michael
Tzo-
panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders.
Pari-Mutuel
Aug.
mon
Equipment Corp.
(letter of notification) 60,000 shares of com¬
stock (par $1). Price—$5 per share. Proceeds—For
24
construction
of
250
machines for
of 40
ticket
race
issuance
machines;
for
semi-blank
of
purchase
tickets;
race
and for working capital and general corporate purposes.
Office—527 Madison Avenue, New York 17, N. Y. Un¬
derwriter—Wistor
New
•
York
8
stock
Smith
&
Co., 40 East 54th Street,
Life
(no par).
Price—$25
(12/3-7)
common
share. Proceeds — For
Office — 1310 Gulf States
per
purposes.
Bldg., 109 North Akard St., Dallas, Tex.
Newborg.& Co., New York.
Underwriter—
Pigeon Hole Parking of St. Louis, Inc.
Oct. 29 filed 300,000 shares of class A common stock (par
25
cents): Price—To be supplied by amendment (pro¬
posed maximum offering price is $3.25 per share). Pro¬
ceeds
To
—
automobile
construct
and
multi-level
two
operate
parking
-
structures,
utilizing
a
patented
Underwriters—A. G. Edwards & Sons
mechanical deviee.
and
•
Dempsey-Tegeler & Co., both of St. Louis, Mo.
:}
People's Finance Corp. (12/10-14)
Nov. 16 filed 50,000 shares of 60-cent cumulative con¬
vertible preferred stock (par $5). Price—$10
per share.
Proceeds—To reduce bank loans and for
working capital.
Office—Denver,
Colo.
,
Underwriter—Paul
&
;
Pittsburgh Consolidation Coal
C.
Kimball
Co., Chicago.
Co.
3 filed
2,678,697 shares of common stock (par $1)
being offered in exchange for common stock of Pocahontas Fuel Co. on the basis of 2% shares of Pittsburgh for
each Pocahontas common share. The offer will be de¬
clared effective if at least 85% of the latter shares hava
been deposited lor
exchange by Nov. 30. Statement ef¬
fective Oct. 23.
'•
-*'
.
★ Priam Securities Corp.
16 (letter of
notification)
Nov.
stock.
8,099 shares of
Price—At par ($5 per share).
vestments.
Office
249
—
common
Proceeds—For in¬
Business —A securities
West
holding corporation.
St., New York 26, N. Y. Under¬
111th
writer—None.
*
Public
Service
Electric
&
Gas
Nov. 14 filed
1,000,000 shares of
Price
be
To
supplied
repay bank loans and for
—
—Merrill
filed
27
common
new
(no par).
Proceeds—To
construction.
Underwriter
Alai, Inc.
$1,500,000
of
to be offered in units of
of stock.
stock
amendment.
12-year
bonds due 1968, and 300,000 shares of
$1)
(12/5)
Lynch, Pierce, Fenner & Beane, New York.
Puerto Rican Jai
July
by
Co.
a
Price—May be $675
construction
of fronton
and
6%
first
mortgage
stock (par
$500 bond and 100 shares
per
common
unit.
related
Proceeds
activities.
—
For
Office-
San
Juan, Puerto Rico.
Underwriters—Crerie & Co.,
Houston, Texas; Dixon Bretscher Noonan, Inc., Spring¬
field, 111.; and Aetna Securities Corp., New York. Offer¬
ing—Date indefinite.
-
Pyramid Development Corp., Washington. D. C.
July 27 (letter of notification) 300,000 shares of common
stock
(par
reserved
$1
10
cents), of which 25,000 shares
are
for
issuance upon exercise of options.
per share.
Proceeds—To purchase real
mortgage notes.
to
be
Price—
property and
Underwriter—Coombs & Co. of Wash¬
ington, D. C.
Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of common stock
(par $1),
200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share
Proceeds—To retire $125,000 of
outstanding 15% deben¬
of which
tures
tions,
as
well
Inc.;
as
and
vision releases.
a
$173,180 debt to Trans-Union Produc¬
for
working
capital.
Underwriter—E.
L.
Business—Tele¬
Aaron
&
Co., New
York.
Redi-Food Co., Inc.
Oct. 8 (letter of notification)
stock
(par
10
purchase
150.000 shares of
common
& McDowell, Chicago, 111.
property in Broward County,
None.
Pacific
Rawer
Co.
Fla.
Underwriter—
Ernest C. Cassill is President and Treasurer.
Teachers
Nov.
8
Mutual Fund of California, Inc.
700,000 shares of capital stock (par $1) to-
filed
be offered only to members and employees of the Cali¬
fornia Teachers Association
(Southern section) and their
families. Price—Initially at $7.14* per share. Proceeds—
For investment.
Office—Los Angeles, Calif. Underwriter
—None.
Products Corp.
(letter of notification) 40,000 shares of common
At par ($5 per share). Proceeds — For
working capital. Office—West Maple Road, Troy, Oak¬
land County, Mich.
Underwriter—None.
(12/11)
Nov. 20
1,
1986.
stock.
Proceeds—To
repay bank loans and for new
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Stone & Webster Secu¬
rities Corn, and Dean Witter & Co. (jointly); Blair & Co.,
Incorporated. Bids—Rescheduled to be received up to
11
American
change
debentures
subscription by
1956,
due
•
convertible subordi¬
common
debentures for
each
Thrift
filed
Plan
shares of
$3,000,000
for
common
per
Proceeds—To
fields.
pay
—
bank
Co.,
Inc.,
loan.
At¬
Southern New England Telephone Co.
Sept. 19 filed 679,012 shares of capital stock (par $25)
to be offered for subscription by stockholders of record
Oct. 1, 1956 at the rate of one new share for each eight
shares held; right to expire on Nov. 2.
Price—$30 per
share. Proceeds—To pay advances from American Tele¬
phone & Telegraph Co. (approximately $15,800,000) and
for property additions and improvements. Underwriter
—None. Offering—Delayed indefinitely by company on
Oct. 4. (See also next paragraph.)
Southern New England Telephone Co.
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par $25) to be issued to American
Telephone & Telegraph Co., which owns 21.61% of the
outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone & Telegraph Co.
Underwriter—To be determined by competitive bidding.
Frobable bidders: Blyth & Co., Inc.; White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and Cooley &
Co.
(jointly); The First Boston Corp.; Salomon Bros. &
Bids—Had been expected to be received up to
11 a.m. (EDT)
on Oct. 10.
(See also preceding para¬
graph.)
Hutzler.
Aug.
filed
24
Oils
holders.
750,000 shares of capital stock (par $1).
share. Proceeds—To selling stock¬
Grease &
Oil
tions,
purchase
corporate
rities Co.,
Co.
25
share. Proceeds—To exercise op¬
additional properties and for general
per
purposes.
Underwriter—Southwestern
Secu¬
Dallas, Texas.
Southwide Corp., Anniston, Ala.
Sept. 12 filed 450,635 shares of common stock (par $1),
211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A
stock of Capital Fire & Casualty Co. and common stock
of
Allied
Investment
Price—$2 per share. Pro¬
ceeds—For purchase of stock of Capital and Allied firms
and for purchase of U. S. Government bonds. Under¬
Corp.
expected at $10 per share in lots ol"
shares; of class B, expected at par. Pro¬
investment
theatrical
in
and
entertainment
non-diversified closed-end manage¬
Business—A
Underwriter—None.
Thermoray Corp.
June 29 (letter of notification) 380,000 shares of
com¬
stock (par 10 cents).
Price — 75 cents per share.1.
Proceeds—For inventory, working capital, etc. Business*
—Electrical heating.
Office—26 Avenue B, Newark, N.
Underwriter—Eaton & Co., Inc., New York.
Title
& Trust Co., New York
61,902 shares of capital stock (par $8) of.
which 35,750 shares are to be offered for subscription!,
by stockholders on the basis of one new share for eacb.
eight shares held; and the remaining 26,152 shares axe
to be offered, together with cash, in exchange for stock,
of Abstract & Title Insurance Corporations of Buffalo.
Nov.
1
Guarantee
filed
21
Rochester and Lockport, N. Y.; on the basis of $15.25 in.
cash find 4/10ths of a share ot Title Guarantee stock Lt*
exchange for each share of Abstract. The subscription
to Title Guarantee acquires at least 85% of the?
Abstract stock.
Price—To be supplied by amendment
offer
Proceeds
—
To
acquire
Abstract
Underwriter
stock.
—
None.
Ltd.
(Canadian) of subordinated
debentures due 1986 and 4,000,000 shares of common
stock (par $1-Canadian) to be offered in units of $1(K/
^ Trans-Canada
Nov.
26
filed
of debentures
unit.
In
Pipe Lines,
$80,000,000
and
five shares of stock.
Proceeds—For
United
States:
Price—$150
construction.
new
Lehman
Brothers,
pei
Underwriters—
Stone
&
Webster'
Securities Corp. and
White, Weld & Co. In Canada: Nesbitt Thomson & Co. Ltd.; Wood,
Gundy & Co. Ltd.;
McCloud, Young, Weir & Co., Ltd.; and Osier, Ham¬
mond & Nanton, Ltd.
Offering—Expected in the lasr
half of
January.
• Trans-Western Drilling, Inc.
15
Nov.
mon
(letter of notification) 3,000,000 shares of com¬
stock
(par one cent).
oil
and
gas
Broadway, Denver, Colo.
Price—Ten cents per share:.
Office—1637 So.
operations.
Underwriter—None.
Tyrex Drug & Chemical Corp.
5 (letter of notification) 150,000 shares of class A.
(par one cent). Price—$2 per share.
Proceeds—
For equipment, raw materials, working capital and other
corporate purposes.
Office—42 Newark St., Hoboken,
N. J.
Underwriter—Dennis Securities Corp., Hobokeri
stock
Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock (par
Price—$5
Interests
Nov.
,.
Sept. 27 (letter of notification) 40,000 shares of common
stock.
Price—At par ($7.50 per share).
Proceeds—For
purchase of new equipment and working capital. Office
—220 W. Waterman St., Wichita 2, Kan. Underwriters—
Small-Milburn
Co., Inc., Brooks & Co. and Lathrop,
Herrick & dinger, Inc., all of Wichita, Kan.
cents).
Proceeds—-To
52,000
ment investment company.
Proceeds—For
Ltd.. Toronto, Canada
Underwriter—None.
Southwest
amendment.
mon
The Robinson-Humphrey
Offering—Datfe indefinite.
Southern Union
by
class A,
ceeds—For
of
Insurance
share.
supplied
not less than 25
Price—To public, $14.50 per share; and to oertain
lanta, Ga.
filed
30
Price—Of
Co., Atlanta, Ga.
Sept. 24 filed 95,714 shares of common stock (par $5), of
which 50,000 shares are to be offered publicly; 20,714
shares are to be offered in exchange for 10,357 shares of
$10 par common stock of Progressive Fire Insurance Co.;
and 25,000 shares are to be offered to certain other per¬
persons, $13
Underwriter
(12/12)
Plan, Inc., New York Cit#
shares of class A stock (par five
cents) and 28,000 shares of class B stock (par five cents).
participations in company's
its
employees, together with 46,154
stock which may be purchased under
General
be
Theatrical
Oct.
the plan.
Southern
Corp.
Underwriter—Dillon, Read & Co. Inc., Now York.
nine
★ Skelly Oil Co., Tulsa, Okla.
27
Transmission
$28,000,000 of revolving credit notes and for
company's gas expansion and reconversion programs.
held; rights to expire on Dec. 3. Price
—100 % of principal amount. Proceeds—For capital ex¬
penditures.
Underwriters—Smith, Barney & Co. and
Merrill Lynch, Pierce, Fenner & Beane, both of New
York City.
Nov.
Eastern
filed $40,000,000 of debentures due Dec. 1, 197L.
prepay
1, 1986, being offered for
stockholders of record Nov. 14,
shares
common
Texas
Price—To
Dec.
the basis of $100 of
on
Stock
or
Nov. 21
Oil
Corp.
filed $167,247,600 of 4%%
—
Exchange or the Toronto Stock Ex¬
by private sale. Proceeds—To A. P. Scot*,,
the selling stockholder. Underwriter—None.
(EST) on Dec. 11 at 49 Federal Street, Boston,
Kalsey, Stuart & Co. Inc., on Nov. 14, submitted
a
bid of 100.02% for 5%s, the only one received.
It
was rejected.
a.m.
25
Price
Texas Calgary Co., Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 2f>
cents).
Price—At market from time to time on thf
Mass.
of which
cents).
Price—$2 per share. Proceeds—
plant and equipment. Office—2505N Butler
Place, New York City.
Underwriter—Hopp & Co., Pas¬
saic, N. J.
To
Office—Montreal, Canada.
registered 6% mortgage bonds due March 15, 197i!
(of $1,000 principal amount each). Price—At par. Pro¬
upon
Price—64 V2 cents per
t
\
*
ceeds—To construct and operate a resort motel and cluft
Uranium, Inc., Denver, Colo.
construction.
sons.
Oct.
.»4
Castle, Inc., Pompano Beach, Fla.
filed 1,598 shares of common stock (par $5) anci
Oct. 15
Ore.
Sierra
nated
11,500 shares of
'?
1
800
Oct. 11 filed $3,000,000 of first mortgage bonds due Nov.
Oct.
Co.
Insurance
general corporate
,
Sun
First National Bank of Portland, P. O. Box 3457,
Sinclair
(letter of notification)
a
• Temprite
.
22, N. Y.
Peerless
Oct.
R.
'
(par $5).
Straus, Blosser
Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
—For core drilling, including geological research and
core
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; for working
capital and other corporate purposes. Underwriter —
Indiana State Securities Corp. of Indianapolis, Ind., for
offering to residents of Indiana.
Orefield
37
' -
dealers for sales effected
ceeds—For construction costs.
Exchange Agent
Kuhn Loeb & Co.; Eastman
-
(2313)
'
,
5% convertible preferred
Price — To be supplied by amendment
(proposed maximum offering price is $6 per share). Pro¬
suits.
swim
Portland,
Dillon, Union Securities & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley
& Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected.
■
"
Underwriters—Hamlin & Lunt, Buffalo, N. Y.; Allen &.
Co. and Cowen & Co., both of New
York, N. Y.; and
Dec. 31, 1956, unless extended.
Samson
'
•
Spar-Mica Corp/, Ltd;
Underwriter—Van Alstyne.
writer—To be determined by competitive bidding. Prob¬
The First Boston Corp.; Blyth & Co., Inc.;
able bidders:
!
'
Oct. 29 filed 400,000 shares of
Regis Paper Co.
on
1
stock
(par $10) of J. Neils Lumber Co. at rate of 21/2 St. Regis
shares for each Neils common share. The offer will ex¬
Ohio Power Co.
■
selling commission will be allowed*
by them. Elvin C. McCary,.
of Anniston, Ala., is President.
Oct. 26 filed 750,000 shares of common stock (par $5) to
be offered in exchange for outstanding common stock
a
Grazier
"
writer—None, but
to
(par $1),
for account of company and
are
Business—Manufacture
poses.
shares of common stock (par one
in units of one $100 bond and 200
Price—$300 per unit. Proceeds — For
stock.
'•
170,000 shares for selling stockholders./Price
$9 per,
share. Proceeds—To increase inventories, finance expan¬
sion and for working capital and other corporate pur¬
4,000,000
construction
80,000 shares
'
*
★ Rose Marie Reid, Inc. (12/17-21)
26 filed 250,000 shares of common stock
be offered
shares of
-
.
.
Nov.
them.
Oct. 4 filed $2,000,000 of 6% debenture bonds due July
cent)
'
'»
V"
Underwriter—Carl M. Loeb, Rhoades
Atlas Corp. may purchase a portion
offered
unsubscribed
«
N. J.
•
United
Sept.
States
Air
Conditioning Corp.
27 filed 600,000 shares of common
stock (par 16
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
public. Price—At market prices. Pro¬
capital and general corporate pur¬
for reoffer to the
ceeds—For working
poses.
B.
Office—Philadelphia, Pa. Underwriter—Mortimer
&
Co., Inc., New Y'ork. Offering—Date
Burnside
indefinite.
•
U.
Nov.
S.
Industries,
14
filed
bentures
due
(12/5-6)
convertible subordinated de¬
1971.
Price—To be supplied by
Continued on page
Inc.
$6,000,000
Dec.
1,
38
(2314)
The Commercial and Financial Chronicle
Continued
from page 37
Proceeds
amendment.
For
expansion
ly); Equitable Securities Corp.; Blyth &
Co., Inc.; Kid¬
der, Peabody & Co. and Merrill
Lynch, Pierce, Fenner
& Beane
(jointly). Offering—Expected in 1957.
capital.
Universal
Lithium Corp.,
Washington, D. C.
shares of class /i voting stock and
1,587,500 shares of class B non-voting stock.
PriceSix cents per share.
Proceeds —For arilling program,
and for plant and equipment for rendering ore market¬
able.
Underwriter
William O'Connor, Secretary of
company, of Arlington, Va* Malcolm W. Ater, of Falls
Church, Va., is President, and Robert G. Baumann, of
Ritchie, Md., is Treasurer.
North Carolina P.
Venezuela Diamond Mines,
Inc., Miami, Fla.
Aug. 31 filed 1,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
of
Securities
Fund, Inc., Boston, Mass.
200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
eral
Underwriter—Venture
Securities
Corp., 26 Fed¬
Co.
shares
in
(of
one
Southern
for
Bell
1956, sold
share offering
66,640
a
new
the
& Co.
the
basis of
one
new
5.
★ Cincinnati,
&
Tele¬
14,464
stockholders)
to
Price—$47
12
shares
per
share.
Nov. 12 it
Wheland
New Orleans, Texas & Pacific
petitive
Oct. 4 it
mortgage bonds
bank loans
Underwriter—To be1 determined by com¬
Probable bidders:
Halsey, Stuart &
bidding.
&
Co.
Consolidated Edison Co. of New
York, lnca
Nov. 20, Charles B.
Deiatieiu, Vice-r resist*.., announced
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn. Offering — Temporarily postponed.
company is planning an issue of
000 of convertible
debentures
Metropolitan
approximately $55,000,-
Julyp2 it
Corp., Boston, Mass.
Aug. 13 filed $800,000 of 6% subordinated cumulative
debentures due Dec. 1, 1976, and 6,000 shares of common
stock (no par) to be offered in units of a
$400 deben¬
convertible debentures.
ture and
gram.
three shares of stock. Price
Proceeds—For construction and
—
$500
per
unit.
recreation
center.
Underwriter—None;
offering to be made by officers and agents of
Wilson & Co., Inc.
Aug. 28 filed $20,000,000
company.
Nov.
of
—
„
Indefinitely postponed.
*ell in
December $24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Secu¬
rities Corp. and
Kuhn, Loeb
Boston Corp.; Harriman
& Co.
(jointly); The First
Ripley & Co., Inc.
Associated Truck Lines, Inc.
Oct. 11 it was announced
corporation plans to issue and
sell $1,000,000 of 6% convertible
subordinated debentures
due Oct. 1, 1971 at par and
75,000 shares of common stock
(par $3) at $11 per share (the latter for the account
of
selling stockholders). Proceeds—From sale of deben¬
tures, for expansion and working capital. Business—A
or
motor
routes
Y.
until
carrier
common
operating
Offering—Indefinitely
postponed.
January.
Atlantic
over
to
are
Coast
Probably
not
Line
be received
* Baltimore
Bids
will
be
New York
&
Ohio
received
5, N. Y.,
RR.
by
up
(12/10)
the
to
company
at
2
Wall
St.,
noon
(EST) on Dec. 10 for
from it of
$1,|380,000 equipment trust cer¬
series HH, dated Jan.
1, 1957 and due in 15
•the purchase
tificates,
equal annual instalments to and
including Jan. 1, 1972.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler.
Brazos
Nov.
12
it
River Gas
was
Co.
reported
this
pected
company, formerly Upham Gas Co. Price—Ex¬
to be about $5 per share.
Proceeds—To selling
stockholders.
Underwriters—Shields
ton, Hammill &
bonds.
&
Co.
and
Shear-
Douglas Aircraft Co.
$15,000,000
sell
mortgage
Underwriter—To be determined
by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly)W. C. Langley & Co. and The First
Boston
Corp. (joint¬
of
Edison
was reported
Co.
that
Mountain
States
Telephone
&
Telegraph
Co.
-
(1/29)
Nov.
20 the
direct©rs
approved a proposal to issue and
sell $35,000,000 debentures.
Proceeds — To repay bank
loans
for
and
construction
program.
Underwriter—To
by competitive bidding.
Probable bid¬
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Morgan Stanley & Co.; Drexel & Co. and Dean Witter
&
Co.
(jointly).
Bids—Expected to be received on
Jan/ 29.
be
determined
ders:
National
•
Bank
of
Commerce,
,d/9)
;
■
,
-
Memphis,
Tenn.
v
:
.
announced stockholders will vote Jan. 8
approving a proposal to offer 25,000 additional shares
of capital stock on the basis of one share for each five
shares held.
Price—$40 per share. Underwriter—Left-
Bids will be received
by company up to noon
Dec. 4 for the purchase from
it of
wich
& Beane and
trust
certificates
l-to-15
to
mature
Probable
years.
(EST)
in
annual
bidders:
installments
Halsey,,Stuart
Inc.; Salomon Bros. & Hutzler.
&
in
Co.
15 it
$5 per share. Business—Producers of fresh
orange
Underwriter—Burton J. Vincent &
Co., Chicago,
General Public
Nov.
15, A.
stockholders
Utilities Corp.
Tegen, President, announced that the
are
going to be offered approximately
F.
647,000 additional shares
ing the first quarter of
share
for
each
15
of
common
1957
shares
Fenner & Beane acted
as
the
on
held.
stock
(par $5) dur¬
basis
of
one
new
Merrill
Lynch, Pierce,
clearing agent in previous of¬
fering to stockholders.
was
High Authority of the European Coal and
Steel
5
it
Boston
Corp. and Lazard Freres & Co. has been
ap¬
pointed to study the possibility of a loan to be issued
on the American market.
The time, amount and terms
will depend on market conditions.
Proceeds
To be
★ Illinois Central RR.
(12/11)
Bids will be received by the
company up to noon
on
Dec. 11, at Room 301, 135 East 11th
(CST)
St., Chicago 5,
$9,300,000 equipment
trust certificates, series 43, to be dated Jan.
1, 1957 and
to mature in 30 equal semi-annual instalments.
Probable
purchase
was
announced
Bank
is
;
offering
to
its
stockholders of record Oct. 24, 1956 the right to subscribe
br before Dec. 3 for 100,000 additional shares of capi¬
(par $16) on the basis of one new share for each
Price—$50 per share-. Proceeds—To in^
capital and surplus accounts. Underwriter—Mer¬
rill, Turben & Co., Inc., Cleveland, O.
10
shares held.
crease
New
England Electric System
Jan. 3,
1956, it was announced company plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury
one
luring
a
1956.
from
it
Electric Light Co., into
This would be followed by
company
$20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
—
May
be
determined
by
competitive
bidding.
Drobable bidders: Halsey, Stuart & Co. Inc.: Kuhn. Loeb
Co., Salomon Bros. & Hutzler, Eastman Dillon, Union
& Co. and Wood, Struthers & Co. (jointly);
Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pie.ce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.
Lehman
New
England Power Co.
Jari;
3
sell
1957.
it
was
of
announced
$10,000,000
Underwriters
tive
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
the
Nov.
and
New York.
for
•
Securities
announced that company
plans to acquire
a 15%
participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii
cable and, if approved
by the directors on Aug. 16, will
be probably be financed
by a debenture issue. Hawaiian
Telephone Co.'s investment will be
approximately $5,500,000. Underwriter—Probably
Kidder, Peabody & Co.,
111.,
;
&
Hawaiian Telephone Cd."*
July 30 it
Memphis, Tenn...
tal stock
was
stock.
Price
& Ross,
National City Bank of Cleveland, Ohio
on
reported that this company (a consolida¬
tion of Vita-Fresh
Corp. and John H. King & Co.) plans
early registration of 100,000 shares of
common
juice.
was
on
on
Eversweet, Inc.
Oct.
Nov* 13 it
$2,805,000 equipment
loaned to firms in the
Community for expansion of coal
mines, coking plants, power plants and
iron ore mines.
company plans to issue and
and $20,000,000 of first
reduction
Underwriters—Merrill Lynch, Pierce, Fen¬
Kuhn, Loeb & Co., both of New York.
Offering—Not expected until after Jan.
1, 1957.
Erie RR. (12/4)
ner
—
Co., both of New York.
Carolina Power &
Light Co.
Oct. 15 it was reported
between
writer—Blyth & Co., Inc., New York and San Francisco
(Calif.).
Community, Luxembourg
(Texas)
that
early registration is ex¬
pected of approximately 200,000
shares of common stock
of
ceeds—Together with funds from sale of up to
$8,436,740
long debt securities, to acquire six Eastern lines. Under¬
3,300
RR.
(12/18)
by the company on Dec. 18 for
the purchase from it of
$5,340,000 equipment trust cer¬
tificates, series K, to be due annually from Jan.
1, 1958
to Jan. 1,
1972, inclusive. Probable bidders:
Halsey, Stu¬
art & Co.,
Inc.; Salomon Bros. & Hutzler.
Bids
,
Proceeds—For
bonds in the next 16 months.
was
in
Illinois, Indiana, Michigan and Ohio.
Office—Grand Rapids, Mich.
Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston,
Mass., and New York,
N.
it
production.
Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
haul
21
19, Donald W. Douglas, President, announced that
the company plans to issue and
sell $25,000,000 convert¬
ible subordinated debentures.
Proceeds—For expansion
of facilities in order to
place the DC-8 jet airliner into
*
miles
an
Nov.
Prospective Offerings
chort
authorized issue of
$125,000,000
Proceeds—-For construction pro¬
Underwriter—May be determined by competitive
approve
announced company has
applied to the
Interstate Commerce Commission for
authority to issue
and sell 250,000 shares of
coipmon stock (par $5). Pro¬
20-year
sinking fund de¬
bentures due 1976.
Price—To be supplied by amend¬
ment.
Proceeds
To
redeem presently outstanding
first mortgage
bonds/to repay bank loans and tor ex¬
pansion program.
Business—Meat packing firm.
Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten &
Co., all of New York City. Offering—
to
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Morgan Stanley & Co.; The First Boston
Corp.
★ Consolidated Freightwavs. Inc.
working capital. Busi¬
ness—Mountain
Feb. 5
on
$18,000,000 and $20,000,000 first
1987.
company is considering the
sale_of $10,000,000 first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able "bidders: Halsey, Stuart & Co. Inc.; White, vVeld &
Co.? Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Go. (jointly); The First Boston
Corp. Bids—Not ex¬
pected to be received until December or early in 1957.
Company presently plans to issue and sell $22,000,000 of
early in 1.957, probably the
latter part of February.
They will be offered to common
stockholders for subscription. Stockholders will be
asked
Mountain
due
construction program.
Underwriter—To
bidding. Probable bidder?:
Halsey, Stuart & Co. Inc.; Equitable Securities Corp. and
Eastman Dillon, Union Securities & Co. (jointly);
Kuhn,
Loeb & Co.; Blyth & Co., Inc.; Merrill Lynch,
Pierce,
Fenner & Beane, Kidder, Peabody & Co. and Harriman
Ripley & Co. Inc. (jointly); Salomon Bros. & Hutzler;
The First Boston Corp., and Glore, Forgan & Co.
(joint¬
ly); White, Weld & Co. and Shields & Co. (jointly). Bids
—Expected to be received about Jan. 15, 1957.
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and
Baxter, Wil¬
&
Co.
(jointly); Glore, Forgan & Co.; White,
Weld
and
be determined by competitive
liams
banks, will
!
(1/15)
reported that the company plans the issu¬
was
and sale of between
ance
Illuminating Co.
Co. Inc.; The First Boston
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion
program. Under¬
and
Underwriter—A. M. Kid¬
Louisiana Power & Light Co.
was
tion program.
the company's account and 61,000 shares for a
selling
etockholder.
Price — To be supplied by amendment.
Proceeds—Together with proceeds from private sale of
$1,500,000 4%% first mortgage bonds and $900,000 of
Underwriter
Offices— Chicago
1956, for 14,000 additional shares of capital
(par $10) on the basis of one new share for each
shares held. Price—$32 nnr sb*-®. Proc»"4«--r*1o
increase capital and surplus.
der *& Co., New York.
reported company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957.
Proceeds—To repay bank loans and for construc¬
Co., Chattanooga, Tenn.
May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common
Mo.
fore Dec. 14,
stock
eight
Electric
Louis,
to issue and sell
stock.
•
expected
Cleveland
pians
common
Long Island Trust Co., Garden City, N. Y.
;
Nov^s28 it was announced stockholders cf record Nov. 16,
1956, are being offered the right to subscribe on or be¬
in
of oil and gas.
Office—Felt Bldg.,
Salt Lake City, Utah.
Underwriter—Us-Can Securities,
Inc., Jersey City, N. J.
&
•
Ry.
to be received by the company late
January for the purchase from it of approximately
$4,000,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are
St.
Bros.
Casualty Co.
reported company
Co.,
Salomon
Jersey Central Power & Light Co.
Sept? 12, it was announced company plans to issue an<3
sell $8,000,000 of first mortgage bonus.
Underwriter—
To b,e determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co.; The First Boston Corp.; White, Weld & Co.; East¬
man. Dillon,
Union Securities & Co., Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner
& Beane
(jointly). '* • • *
Pro¬
rights to
share for each
Dec.
on
&
Inc.;
Bloomington, 111.
-Chase Manhattan
Bank, New York Nov. 13 stockholders voted to increase the
authorized
capital stock (par $12.50) from 12,000,000 shares to
on
was
Co.
&
75,000 additional shares of
—White
construction.
Telephone
its
to
Stuart
share for each
new
($100 per share).
loans and
February,
R. S. Dickson
.
Bids
—For development
Wildcat
bank
to
for
Underwriter—The First Boston Corp., New York.
Western States Natural Gas Co.
group of
Price—At par
reduce
Underwriter—None.
graph
an
Halsey,
Interstate Fire &
aumonty to olier
additional 58,310 shares
the basis of
on
shares held.
ceeds—To
1956
Aug. 24 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents
per share. Proceeds
a
stock
common
four
stockholders
held; rights to expire
St., Boston, Mass.
3-year unsecured 4^% notes to
common
U. Commission
bidders:
13,000,000 shares, the additional 1,000,000 shares
being of¬
fered for subscription by stockholders of
record Nov. 15,
Co., Inc., of Florida, Miami, Fla.
Sept. 4 filed
ment.
its
to
—
Venture
Sept. 26 it
Nov.
Nov. 15 filed 1,320,000
lumbia Securities
Hutzler.
★ Carolina Telephone A
Te^frrap'^ Co.
16 it was
reported company has applied
and
working
Underwriter—Lehman Brothers, New York.
—
Thursday,November 29,1950
....
of
—
company
first
To
be
plans to
now
mortgage
bonds
issue
early
in
by competi¬
Halsey, Stuart &• Co,
determined
bidding.
Probable bidders:
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
Dillon, Union Securities & Co. and Wood, Struthers
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch. Pierce,
Fepner & Beane, Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
man
New
England Telephone & Telegraph Co.
Oct. 16 it
announced that the company
(1/8)
plans to issue
$35,000,000 of 29-year debentures. Proceeds—
To repay temporary borrowings. Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.
Bids — Expected to be received on
was
and
sell
Jan.
8, 1957.
Volume
184
Number 5590
.
.
The Commercial and Financial Chronicle
.
(2315)
New
Sept.
Jersey Power & Light Co.
12
it
announced
was
★ Pacific Power & Light Co.
plans to issue and
company
Nov. 21 it
sell
$5,000,000 of first mortgage bonds. Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart &
Co.; Kuhn, Loeb & Co., Leh¬
man
Brothers and Salomon Bros. & Hutzler
(jointly);
Eastman Dillon, Union Securities & Co. and
White, Weld
& Co.
(jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill
Lynch. Pierce. Fenner & Beane.
New Orleans Public
Nov. 13, Edgar H.
was
(1/7)
for
reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987.
ler
(jointly); Blyth & Co., Inc. and White, Weld & Co.*
(jointly); Eastman, Dillon, Union Securities & Co. Bids"
—Expected to be received
Dixon, President, announced that this
on
(1/7)
reported company plans to offer publicly
an issue of
90,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
Nov. 21 it
-
was
bidding. Prob¬
able bidders:
writer
Halsey, Stuart & Co. Inc.; White, Weld &
May be determined by competitive bidding.
Co.; Blair & Co. Incorporated; The First Boston
Corp.; •} Probable bidders: Lehman Brothers; Blyth & Co., Inc.;
Equitable Securities Corp. and Eastman
Merrill Lynch, Pierce, Fenner & Beane.
Dillon, Union
Bids—Expected
Securities & Co. (jointly);
to be received on Jan. 7.
Kuhn, Loeto & Co. and A. C.
Allyn & Co. Inc. (jointly); Kidder, Peabody & Co. and
Palisades Amusement
Stone & Webster Securities
Park, Fort Lee, N. J.
Corp.- (jointly); Lehman
Aug. 21, Irving Rosenthal, President, announced that
Brothers. Offering—Expected in
March, 1957.
company plans to purchase another
amusemenUpark and
New York
—
Central
RR.
(12/6)
Bids will be received
by the company on Dec. 6 for the
purchase from it of $8,055,000 equipment trust certifi¬
cates dated Jan.
1, 1957 and to mature annually from
Jan. 1, 1958 to
1972, inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
New York State Electric & Gas
Oct. 24 it was announced
company
Pan
-
of
additional
Underwriter—To
program.
Pennsylvania
be
Sept.
The
stockholders
approving this
issue.
Dec.
on
Proceeds—For
4
will
vote
construction
Underwriter—May be determined
bidding.
(jointly).
to
on
equipment
certificates.
Probable
bid¬
per
new
share.
capital stock (par $12.50)
shares for each three shares held.
Proceeds—To increase capital and
construction
latter part of year.
Inc.
plans to finance
Bids
are
expected
Its
be
(12/19);
received
& Cp.,
-
by this company
Nov.
Gathering Corp.. Houston, Texas
the
Coast: of
in
the
City, Okla.
company.
:
bonds
vestors
as
well
of
new
power
mated $217,400,000
Pacific
Nov. 19 it
to
institutional
in¬
the general public.
as
part, for cost
Proceeds—To pay,
project to cost an esti¬
reported company plans to offer
$12,000,000 to
$13,000,000 of debentures.
Underwriter—Eastman,
Offering
—
Expected in
,
Oil
Nov.
27 it was announced the
company plans early in
1957 to offer additional
capital stock to its stockholders
on
the basis of not more than one new
share for each
10 shares held
(at Sept. 30, 1956 there were
outstanding
43,727,585 shares). The financing may also include an
offering of debentures not exceeding $100,000,000. Pro¬
ceeds—For exploration and
development costs and
plant expansion. Underwriter—Morgan
Stanley &
Southern
fer
Co.,
Counties
Gas Co. of California
reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Jan. 30 it
Boston
was
Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane.
Southern Electric
Generating Co.
May 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power
Co.,
subsidiaries of Southern Co., plans to issue debt
securi¬
ties. Proceeds—Together with other
funds, to construct
and operate a
$150,000,000 steam electric generating plant
on the Coosa River in Alabama.
Underwriter—May be
determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
rities & Co.; Equitable Securities
Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.
Inc. and
Goldman, Sachs & Co. (jointly); Blyth & Co.,
Inc. and Kidder,
Peabody & Co. (jointly); Morgan
Stanley & Co.
Southern Indiana Gas & Electric Co.
Nov. 16 the company filed with the Indiana
P. S. Com¬
mission an application for
authority to issue and sell
1987.
Pro¬
bank loans and for construction pro-Underwriter—To be determined by competitive
gram.
repay
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo¬
Bros. & Hutzler
(jointly); Blair & Co. Incorporated;
Kidder, Peabody & Co.; Eastman, Dillon, Union Securi¬
ties & Co.; The First Boston
Corp.; White, Weld & Co.
and Shields &
Cp. (jointly). Registration —-Expected
mon
*
.
,
■
★ Southern Ry.
Bids
are
expected to be received by the company
early
in January for the
purchase from it of about $5,600,000
equipment trust certificates. Probable bidders:
Halsey,
& Co.
Inc.; Salomon Bros. & Hutzler.
★ Southwestern Gas & Electric Co. (1/22)
was reported
company plans to issue and sell
$10,000,000 of first mortgage bonds due 1987. Proceeds
—To repay approximately
$6,000,000 of bank loans and
Nov. 21 it
for
new
construction.
Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
Co. Inc.; Equitable Securities
Corp.; Salomon Bros. &
&
Hutzler; Blyth & Co., Inc.; Lehman Brothers; Kuhn,
Loeb & Co.; Merrill
Lynch, Pierce, Fenner & Beane.
Bids—Expected to be received on Jan. 22.
Southwestern
Aug. 7
sell in
it
Public
Service Co.
announced
was
February
company
issue
to
plans
and
March, 1957, $5,000,000 of first mort¬
or
of
one
new
share
for
offering of 25,000 addi¬
stock
(par $10) on the
each
three
Price
and
—
shares
$30
per
held;
share.
surplus.
Louis-San
Francisco Ry.
Sept. 5 company offered not exceeding $61,600,000 of
50-year income 5% debentures, series A, due Jan. 1, 2006,
154,000 shares of common stock
(no par), and cash
stock, series A, on the basis of $100 of deben¬
one-quarter share of common stock and unpaid
dividends of $2.50 per preferred share in
exchange for
each 5% preferred share. The oJiei will
expire on Dec.
Texam Oil
Oct.
★
Nov.
an
21
it
was
announced
offering to stockholders
of stock
(par $5)
on
Huntington,
N.
Y.
have approved
19,784 additional shares
of
share for each
as of record Nov.
20, 1956. Price—$30 per
Proceeds—To increase capital and
surplus.
one
new
Seiberling Rubber Co.
Sept.
term
mon
10
it
debt
stock.
was
reported that
—
announced
was
company plans longof additional com¬
financing and/cr issuance
Proceeds—To redeem preferred stocks
that
the
1,000^000 additional
common
it
9
was
National
75,000
the
shares
Dec.
on
held
20.
as
Bank of San
announced
(par $10)
of
Bank
additional
basis of
Nov.
one
15,
Price—$27.50
plans
shares
of
share
new
Diego, Calif.
to
offer
to
capital
for
each
1956; rights will expire
share.
per
its
stock
2%
on
Proceeds—To
pur¬
chase Pasadena-First National Bank and its two branches
in
Pasadena,
United
June
effective
States
Dec.
Rubber
H.
E.
of
29,
issuance
convertible
7,
1956.
Co.
Humphreys,
Jr.,
Chairman, stated that
debentures
is
one
of
several
possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added
that, if
convertible
rata to
&
debentures
common
are
issued, they will be offered
stockholders.
Co., New York.
Underwriter—Kuhn,
Offering—Expected by 1958.
Bids
are expected
to be received by the company early
January for the purchase from it of approximately
$2,000,000 equipment trust certificates. Probable bid¬
in
ders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Western
Pennsylvania National Bank
reported Bank plans to offer to its stock¬
holders 132,812 additional shares of capital stock on a
l-for-3 basis.
Price—$30 per share.
Proceeds—To in¬
crease capital and surplus.
Office—McKeesport, Pa.
Nov. 13 it
the
Proceeds—
Underwriter—Dillon, Read &
★ Wabash RR.
stockholders
the basis of
l-for-14
Corp., San Antonio, Texas
United States
Nov.
Loeb
of
a
stock, recently authorized by the di¬
rectors, will provide the company with the additional
working capital it will require for further expansion.
pro
Bank
it
1
—The Chase Manhattan
Bank, New York.
National
on
Co., New York.
31,
1956, unless extended. Dealer-Manager — Eastman Dil¬
lon, Union Securities & Co., New York. Exchange Agent
★ Security
stock
stockholders
tures,
★
common
shares of
an
and
„
Co.
basis.
share.
was
year.
★ Socony Mobil
292,000 additional
25 shares held
Petroleums, Ltd.
Dillon, Union Securities & Co.
January.
Underwriter—To
ferred
Aug. 13 it
000,00G of
in
repay
equivalent to the unpaid portion of the preferred divi¬
dend which has been declared
payable in 1956, in ex¬
change for its 616,000 shares of $100 par value 5% pre¬
Underwriter
Pacific Northwest Power
Co.
was reported
company plans to sell about $32,common stock to the
organizing companies and
that arrangements are
expected to be made to borrow
up to $6G.000,00Q on a
revolving bank loan which will be
reduced through the sale ©f
early this
shares of
St.
of
holding
& Parker and Allen
Co., both of New York, handled stock rights
offering
For construction program.
basis
Oklahoma $20,000,000 of its capital
($10,000,000 within organization and
$10,000,000
publicly). Proceeds—To organize or
acquire seven sub¬
Business—A
&
,
$5,000,000. Proceeds—
and
working capital.
aircraft
gage bonds and to offer to stockholders
rights to expire on Dec. 14.
Proceeds—To increase capital
stock
sidiaries.
—None.
construction.
Nov. 14 stockholders approved
tional shares of new capital
and
State
plans the issue and sale
Puget Sound National Bank of Tacoma
July 26 it was announced
company has been authorized
by the Oklahoma Securities Commission
to issue
sell
new
raise
to
Underwriters—Auchincloss, Redpath
Stuart
bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly). Offering postponed.
York.
Oklahoma
of
purchase
order
First Boston
not
Corp.,
new
in
ders:
.
yet been determined, but tentative
plans call for private sale of first
mortgage bonds and
public cffer of about
$40,000,000 of. securities (probably
notes, convertible into preferred stock at
maturity, and
common
stock). Underwriter—Salomon Bros. &
Hutzler,
New
Oklahoma
Electric
—
Stale of
Mississippi. It is estimated that this gather¬
ing system will cost approximately
$150,000,000. Type
financing has
&
bank loans and for construction
program.? Underwriter—
To be determined by
competitive
18, 1955, David C. Bintliff, Pres., announced com¬
has filed an application with
the. Federal Power
Commission for a certificate of
necessity to build a
364-mile submarine gas
pipeline off-shore the coast of
Louisiana from the Sabine River to the
Gulf
Gas
Public Service Co. of
Indiana, Inc.
July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds
To retire
pany
of
Standard
Expected to be received early in 1957.
on
Jan. 9, 1956,. for the purchase from it
of about $7,700,000
equipment trust certificates.
Probable bidders:
Halsey,
Stuart & Co. Inc.; Salomon Bros.
& Hutzler.
*
Offshore
loans and for
stock
common
early in 1957.
announced that
was
increase in the author¬
an
$5,000,000 30-year first mortgage bonds due
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. Bids—
$40,000,000)
treasury funds in
'
to
it
Inc.
no
par
shares to
2,000,000 $5 par shares. It was stated that the
company
may issue and sell a convertible debenture issue or some
ceeds—To
$30,000,000 first mortgage bonds. Proceeds—To
bank
about
Underwriter—Probably Blyth
'
"
" "
Northern Pacific Ry.
up
Suburban
purchase from it of
Public Service Co. of Colorado
Oct. 8 it was reported
.
•
company
1811,
Co. will offer to its stockholders
rights to subscribe for
540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
per share.
of
program
(costing
of debentures and
by the
Room
at
company
Northern Natural Gas Co.
19 it was reported company
July
1956
29
Pittsburgh Rys. Co.
May 4
of
surplus accounts.
Underwriters—Kidder, Peabody & Co.;
Adams & Hinckley; and Rippel & Co.
through issuance
received
debentures or straight, .deben-,
Underwriter—The First Boston Corp., New York.
tures.
3
Price—$26
Nov.
borrowing, convertible
North Jersey Trust
Co., Ridgewood, N. J.
15 company offered to
its stockholders of record
Nov. 8, 1956 the right to subscribe on or
before Dec.
at the rate of two
on
Sept. 24 it was indicated that the company next year
will give consideration to
refunding its $75,000,000 of
short-term bank loans. After
review, the company will
decide the most appropriate type of
long-term borrow¬
ing, whether it be insurance loans, long-term bank
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
24,000 additional shares
(EST)
(11/29)
be
Phillips Petroleum Co.
Nov.
for
RR.
expected to
Salomon Bros. & Hutzler.
(1/15)
trust
are
noon
due
expected to be received by the
company on or
about Jan. 15 for the
purchase from it of aoproximately
ders:
&
about
are
$4,650,000
Co.
company
Bldg., Philadelphia 4, Pa., for the
$9,300,000 equipment trust certificates, series GG,
semi-annually from July 1, 1957 to Jan. 1, 1972,
inclusive. Probable bidders: Halsey, Stuart & Co.
Inc.;
pro¬
by competi¬
Stuart & Co.
Bids—Expected in January.
★ Norfolk & Western Ry.
Bids
Electric
announced
was
Pennsylvania
Bids
Probable bidders: Halsey,
Inc.; The First Boston Corp.; Morgan
Stanley & Co.;
Kuhn, Loeb & Co. and Eastman Dillon, Union Securities
& Co.
it
Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co.
(jointly); Equitable Securi¬
ties Corp.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.
(jointly).
holders).
12
Fenner
stock¬
tive
take
plans to issue and
sell $6,000,000 Of first
mortgage bonds. Underwriter—
To be
determined by competitive
bidding.
Probable
bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce,
Niagara Mohawk Power Corp.
Oct. 17, Earle J.
Machold, President, announced that the
company plans to sell in the near future
$50,000,000-of
convertible debentures
(probably first to common
gram.
to
explore, drill and
oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.
determined
by competitive bidding. Probable bidders:
Halsey, Stu¬
art & Co. Inc.;
Kuhn, Loeb & Co.; Blyth & Co. Inc. and
Smith, Barney & Co. (jointly); The First Boston
Corp.
and Glore, Forgan & Co.
(jointly); Harriman Ripley &
Co, Inc.; Kidder, Peabody & Co. and Salomon
Bros. &
Hutzler
SEC preparatory to an
equity offering planned
place later this year. Business—To
—
construction
Airways,
1,000,000
Cuba Oil
9,
operate
Corp.
Probably
—
New York.
& Metals Corp.
(Del.)
Walter E; Seibert, President, announced that
company will soon file a registration statement with the
April
plans to sell in the
1957, $25,000,000 of debt securities and an
$20,000,000 in 1958. Proceeds
To finance
Spring
the two and then sell stock to public.
merge
Underwriter
Nov. 15 stockholders approved
ized common stock from
For
Jan. 7.
★ Pacific Power & Light Co.
company plans to issue and sell $6,000,000 of first mort¬
gage bonds. Proceeds—For construction program. Underwriter—To be determined by competitive
Slick
etc.
program,
Incorporated, New York.
Proceeds—
To repay bank loans and for new
construction. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Lehman Bro¬
thers, Bear, Stearns & Co. and Salomon Bros. & Hutz¬
Service, Inc.
expansion
Blair & Co.
39
was
.
40
The Commercial and Financial Chronicle
(2316)
Steel and Automobile Production
Incorporated Fund
Assets
Up 30%
of
increase in
80%
than
More
assets
Mutual Funds
Carry Axe Business Index Higher
The
net
Income
Incorporated
31, 1956, is shown in the just
annual report.
Municipal Bond Mutual Funds
Dividends
stockholders
to
account
equalled
high of 52 cents per share.
£ new
Additional
cents
50
paid
income
from
net
security profits ol
share were. realized
per
and
made
ers.
enabling legislation to let mutual funds create tax-exempt bond
income
when
to
stockhold¬
increased from $8.91 to the equiv¬
alent
after adjusting
$9.42
of
security profits
a
27 cents paid
Over
for
distribution
of
Dec. 9, 1955.
6,000
Puerto Rico
countries.
Hawaii,
foreign
The
will
somewhat
in
incorporated
furnish
in
schools,
for
to
must
roads
now
and
State officials have
the
pay
of
entirely
an
the
last
session, Congress failed
However,
in
the present
months
recent
the
level
and
of
Charles
profits
Chairman
state
Parker
A.
their
in
Devens
President
and
Quoting
economic
rated
consultant
Income
attention
oraws
growth
incorpo¬
the
to
through
steady
securities
84
1956.
out
their
increased
dividends while held by the fund.
Two
Progress
appointments to the
New
Karl
by
Karl
West
112
York
City,
Street,
34th
were
announced
Petti t, Jr., President.
D.
A.
Kaschewski,
Woodley
Road, Morristown, N. J., has been
Vice-President
made
the
to
mutual
of
the
position
the
Sales
of
concern.
III Testing in Common
j
Stocks for Income
\
*
cents
Up
New
record
highs for American
fiscal
tors
will
were
outstanding
Lovelace
Mr.
year
a
said
the
a
diversified
I
group
cause
of their relatively high
cur-
■
rent
yield
ex-
j
pectanee of its continuance with
regard to the risk involved. Pros-
|
ij
1
pectus
jj
may
%
j
j
stocks
and
and
reasonable
other
_!
in-
I
t
your
" vestment dealer or:
jj
j
j
National Securities &
Research
j
Broadway, New York 5,
New York
influence
an
reserve
increase
these
of
cash
the
of the fund has been built
in recent months, Mr. Lovelace
up
said.
tion
confidence
$19,824,476 of net assets
through the merger with Pacific-
view
the
of
in
the
management's
long-term
out¬
look, however, "the major effort
American Investors, Inc. on Feb. for
strengthening the fund's in¬
1, 1956, purchases of new shares j vestment position has been di¬
in the fund, and the increase in
rected
toward
shifting
invest¬
value
the
of
securities
ments
into
believe
investment
income
for
to
approximately 26.5
share on the 5,466,983
the
16.
to
cents
759,437
share
per
Oct.
Net
in
31,
the
1955.
gain on
invest¬
ments in the year just concluded
was
$6,850,504 as compared with
$2,487,176
.j
_
,
in the preceding fiscal
'
.
;r,,,
^
-
Dividends paid from net invest¬
ment
income in
the fiscal year
|
ended
per
Oct.
share
in
cents
31
as
last,
1956 of
$37.07
on
$71,418,634, equal
share
per
assets
net
with total net assets
$54,519,991,
per
realized
year.
total
1,926,593
on
shares outstanding. This compares
2,-
number of shares
the
fiscal
year
average
outstanding
ended
on
he
Scudder, Stevens & Clark Fund,
or
share
a
year ago
equivalent
of
$37.35
to
1,459,587 shares then
on
outstanding.
Stock
net assets
Fund, Inc. reports total
on Nov. 16, 1956 of $13,-
564,522, equal to $23.91
567,319
on
This
share
per
shares
outstanding.
with
total
net
compares
25 cents assets a year ago of $10,782,570,
with 23.7 equivalent to $22.87 per share on
distributions 471,443 shares then outstanding.
were
compared
1955,
and
semi-durable
Form First
Hines, Galvin & Co.
ATOMIC SCIENCE
Formed in Boston
BOSTON,
Galvin
through
has
Frank A.
ATOMIC
Mass.
—
become
a
P.
of
Hines in the investment
bus^ess of Hines & Co., 53 State
DEVELOPMENT
Street,
and
the
firm
: name
has
MUTUAL
been
FUND, INC.
Co. The firm holds membership in
the Boston Stock Exchange
GET THE FACTS AND FREE PROSPECTUS
changed to Hines, Galvin &
ATLANTA, Ga.
Development Securities Co., Inc.
1033 THIRTIETH
C
STREET, N. W., WASHINGTON 1, 0. C.
Tel.
FEdera!
SACRAMENTO,
Bryant
is
now
Calif.—Foy
with
Richard
3-1000
Harrison, 2200 Sixteenth Street.
.
in
A.
the
in
Building
securities
a
Mort¬
to
en¬
business.
Richard W. King is president and
L.
L.
Bowman
is
sharper
even
to
of
material
raw
an
owning
index
advances
in
wool, hides, and rubber.
Agricultural prices generally have
E.
Rizzo
should
be
of
considerable
advantage to the farmer and farm
machinery
because
producers,
cash
farm
already
Avery
L.
Broadway.
CITY,
joined
income
begun
this
show
to
has
year
slight
a
Eppler
staff
Company,
of
1339
advances
prices
probably be "rolled
levels.
It is to
hoped that price controls will
not
be
adopted,
since
nothing
else would be quite so harmful
will
to
the
to
prewar
business outlook
the survey
general
outside!
of
rationing,
notes. *
The
automobile
believes,
cated
industry, Axe
have extri¬
remarkably from the
to
appears
itself
situation
created by overproduc¬
during November and De¬
cember, 1955 and January,< 1956.
Since the end of April, domestic
factory sales of passengqr cars
have been continuously and sub¬
stantially
lower
than
new
car
tion
registrations,
have
been
that field
so
to
reduced
Production
1957
of
stocks
normal.
is
cars
not
yet in full swing, but it is inter¬
esting
that
observe
to
General Motors and Ford
tion
has
tailed
thus fatproduc¬
reached the
level
of
only
cur¬
production
last
Chrysler, owning
labor difficulties, has not even
while
summer,
to
reached
level.
that
This
of
the
and
heavy
steel,
com¬
reported
absence
panies suggest the possibility that
auitonnai
peaks
of
production
sopH
those
!>«
of
1955
be
may
avoided, thus keeping the industry
on
an
in
keel
even
situation
in
1957.
the
construc¬
tion
industry is mostly unchanged.
Residential construction is prob¬
Boston Fund
able past its peak,
Assets Now
construction
of
well.
$142 Million
An
is
textiles
for
mand
but other kinds
holding up
are
improvement in the de¬
indicated by
a
recent
upturn in cotton and
Total net assets of Boston Fund,;
rayon cloth prices and by the fig¬
one of the largest mutual funds in
ures
the
country,
742,567
amounted
the
at
close
to
of
$142,-
the
third
quarter of its present fiscal year
Oct.
share
at
$16.07
per
outstanding
figures
compare
These
total
508
to
8,885,244
on
shares.
with
equal
31,
net
the
assets
end
of
of
$135,446,-
the
previous
fiscal year last Jan. 31, equivalent
to
$15.74
share
per
shares then
8,602,950
on
outstanding.
and
with
accordance
the
secu¬
in
stocks
judgment of
the
management, Henry T. Vance,
President, observes in the current
quarterly report that as of Oct.
the
31
net
proportions
cash,
stocks
bonds
and
stocks.
the
bonds
and
in
was
his
Mr.
letter
indicate
turn
volume
at
a
Vance
to
prospects
high
the
of
last
stocks.
general
remains
level,"
common
29.1% was in cash,
preferreds and 70.9%
common
"The
ness
in
close
in
preferred
and
65.9%
At
year,
34.1%
were
busi¬
high
At
areas
differ
the
"and
would
moment
continuance
a
levels.
in
comments
shareholders,
the
at
of
very
.
of the buciness
in
industries
during - the*
summer and fall, the total volume
of all kinds of business, as indi¬
cated
portfoho
our
individual
pic-
the
once
grouo
affain
to
and
a
your
stresses
imoo^tance_of fi°ld
research
which
company
is
as
this
we
report,
directed
prudent
sity
for
and
high-grade bond prices have
to
decline,
however,
forcing
levels
yields
in
of
the
to the highest
The commercial,
up
years.
industrial,
agricultural
and
loans
reporting
member banks
have turned downward, allowing
for
fluctuations, indicat¬
seasonal
ing
the
possibilty
interest
in
have
is
rates
effect in
some
that the rise
beginning to
curtailing the
demand for credit.
Thus
far
interest
the
T
however
has
rates
national
usual
the
the
at
rise
a
in
decline
Product and
and
In
these
and
a
no
in
income,
effect
contrary
Even
tightening of 1952-
53, for example, was followed by
in¬
believe,
had
experience.
the mild credit
total
the
the
in
Government
rate.
continued
picture
to
increase
another
discount
careful
we
interest
although
other
a
and,
important
no
short-term
ing for the time being the neces¬
business
approach
tunities of
time."
it
in
91-day Treasury
bill rates have eased off, obviat¬
rates,
operations.
reflects
of the
see
been
has
change
securities
constitutes
challenge
management
would
cars.
There
to
in
reported
is
It
carloadings
of
and
production, has remained
indeed that
have
been
higher except for a shortage
high.
on
stimulating
freight carloadings
by
power
re¬
of
;%
Despite slackness in several im¬
they are showing during the
current period.
As a result, the
selection
re¬
~
time,
same
somewhat
survey
.
the
a
disposable
1956,
on
income
Gross
personal
the
have
income.
all
contrary,
factors,
consumption
savings,
National
leveling off of total
and
also
expenditures
continued
to
forge ahead despite all handicaps,
oppor¬
investing at the present
?
inven¬
and
the
rayon,
portant
such
of
of
ports.
is constantly bal¬
common
consumption
on
tories
even
Noting that the investment posi¬
tion of the fund
appraisal
Calif.—Jos.
the
Axe
war,
encouraging
of
wave
designed to anticipate the danger
of
price
controls,
although,
if
price
controls
are
instituted,
The
in
has
is apparently
another
ordering by the automobile
advanced.
"Our portfolio, as it is set forth
Avery Eppler
the
of
outbreak
still
sec¬
retary.
REDWOOD
The
states,
been
goods
dividual
treasurer.
Joins
E.
all
—
offices
Guarantee
gage
gage
with
has
sults
First Georgia
Corporation has been
Securities
formed
With Richard Harrison
Atomic
Georgia Sees.
(Special to The Financial Chronicle)
Joseph
partner
zinc
cotton,
various
invest in
has
fiscal
Scudder, Stevens & Clark Com¬
mon
and
Axe-Houghton
rities
Nov.
$676,597
lead
prices has shown
to
conditions,"
cents
aver¬
and
similar
a
zinc
anced between fixed-income
reports
24.5
situated
favorably
new
Inc.
of
we
concluded.
number of shares outstanding
during the year.
This compares
income
which
stocks
are
the
meet
age
net
The
on
In
of
in¬
manufacturers have
announced
price
increases
in
order to maintain profit margins.
up¬
A
recognition
earlier.
|
Corporation
Established 1930
120
j
information
be obtained from
jj
|
been
and
trend through this decade,"
with
i
be-
common
have
ing the explosive Middle East
situation, as well as the effects of
tight money, increasing competi¬
tion, and rising costs on the earn¬
ings of various companies and in
outstanding at Oct. 31, 1956
and $8.10 for each of the 3,354,201.
shares
the
over
.The near-term outlook is more
clouded with uncertainties includ¬
shares
this
This
he said.
the 6,857,155
on
opti¬
business
the dynamic fac¬
continue to
ward
$58,652,651, an increase of 116%
over
the $27,181,663 total at the
end of the preceding year.
The
respective net asset values per
$8.55
for
market
that
which
for
increase
in recent years
Jonathan B. Love¬
lace, President, announced in the
annual report
to shareholders.
were
pre¬
operative
brought new
highs in business activity in 1956
assets, net income, net real¬
gains, and distributions to
share
stock
feel
"We
shareholders,
per
selected
of
the
com¬
expressed
the outlook
on
as
in the
and
changed
by the Egyptian war, which has
brought about sharp increases in
lead and zinc prices in London.
longer term.
Fund, Inc. were set in the
year
ended Oct. 31,
1956
in. net
lent
I
a mutual fund, the primary objective of which is to provide an
investment in
But
77
were
prices
cause
lead
a
in
been holding up considerably bet¬
ter than the demand for copper.
proposed
1956
in
cents
67.3
year.
Lovelace
Mr.
mism
liscal year was $1,447,337, equiva¬
!
j
0
share
with
ceding
owned.
1
National Stock Series
4
per
Mutual
Net
through
i
demand
New
gain
in
decline
a
copper
threatening to
level
probably
was
causing
States
price
prices
despite the fact that the domestic
their
at
realized
and
market
I
net
$31,470,988 in net assets during
the year was due to the acquisi¬
Edwin F. Marsullo has been ap-
Manager of
industry
fund
pared
of
to
support
from
116% In Year
Future
Planning Corp.
X>ointed
The
this
and
owing
summer
favorable
in
United
in
cafry a great deal ol' weight.
Total net assets at Oct. 31
execu¬
tive staff of Future Planning Cor¬
poration,
give
Assets Go
ized
Personal
abroad,
hearings to be held in January by Representative Wright Patman
should
dividends
June,
During the past 12 months 31
of
to
report
the
corporate
of
1939
from
intends
Slichter,
to
Fund,
„
York
American Mutual
Ii.
Sumner
in
which
importance of aiding communities
bonds.
less
the
factor
has dramatized
squeeze
prices.
during the
decline
"tight money"
end to the decline in
an
creased
message
stockholders.
to
opening
two similar bills,
on
put
London cop¬
per prices have advanced.
Nonferrous metal
imports in¬
continued
a
corporate
dividends,
William
to act
of
farm
,
wage
be
copper scrap
lethargic attitude.
a
marketing of local tax-exempt
fiigh
on
Aside
the suggested text for such Congressional legislation.
primarily because of
index
prices
advanced, largely because of
increase in steel scrap prices
but also because the Egyptian war
The National Association of Investment Companies is already
In
1955.
-
higher
to
recent
creases, many
back"
to
on
of 1954 and
Axe-Houghton
an
"buyers' market" for municipal bonds.
new
indeed
owing
Following
has
has
three-pronged attack
a
from this, it is clear that the State will benefit from the
up
The
other projects.
already begun
power
has
increase
marketings.
durable goods raw material
their bond issues, floated to
on
lower
which
tendency to level off
the
beginning of 1956 in
sharp contrast with the sustained
interest rates
problem of better marketing of state and local bonds.
1957
opinion of
Fund man¬
expected
is
base
the
the
Income
This
agement.
higher
in
1956,
that communities
finance
about the high
concerned
are
These ad¬
partly off¬
a
expansion
working
level of business
general
be
than
since
back such a
State would
both Governor Averell Harriman and State Con¬
troller Arthur Levitt
eight
and
shown
this week
increased
greatly
was
that New York
reported
was
In the state,
investors
more
joined Incorporated Income Fund
curing
the
year.
Stockholders
come from every state as well as
the District of Columbia, Alaska,
bonds
municipal
from
it
weekly
advanced
somewhat
by
production,
to their shareholders the tax-exempt status of
on
pass
set
program.
Net asset value of each share
payable
and
funds
has
miscellaneous loadings.
vances have been
only
The possibility that Congress may act in its next session on
v
index
owing to increased steel and auto¬
mobile
production
and
higher
Fund, from $26,700,000 to $43,700,-
issued
Axe-Houghton
business
By ROBERT R. RICH
000, during the fiscal year ended
Oct.
Thursday, November 29,1956
.
.
.
including
in
some
fairly severe recessions
industries.
Volume
Number 5590
184
.
.
The Commercial and Financial Chronicle
.
(2317)
Two With Reynolds Co.
postpaid
.
CHICAGO, 111.
Orlin I.
and
son
come
Frank B. Hes-
—
have
Brown
Trading
&
and
Allyn & Co.
With Nat'l Inv. Corp. \
OAKLAND, Calif. — Henry S.
Andersen and Irving E. Schlosser
staff
the
to
Investment
National
768
added
Institute
of
of
Accountants,
N.
Y.
(paper),
$15.
...
of
112
William J.
Ewing, Jr., Aiphonse J. Martischang and Anthony Nicoli have
New
of
New
lTork
York
to the Governor of
State
of
New
York
and
the
New
the
York
State —New
\orx
Biscayne
3839
Florida,
of
Inc.
Exchange
Quotations—
Broad
55
New
pleton,
of
members
the
Street,
York
and
Exchanges.
Stock
Angeles
Los
New
the
to
Spring
South
650
off
& Tem-
Jones
Mitchum,
of
staff
added
been
has
Burback
Jones
Street, New York 15,
York.
Parle
Calif.—John T.
LOS ANGELES,
Boyd, Jr. is now with Morgan .&
Co.,
634
South
Spring
Street,
members of the Los Angeles Stock
Exchange.
Four With Dean Witter
Calif.—John M.
Bush, Sidney Y. Gregory, James
W. Martin and Christian B. Niel¬
sen are now associated with Dean
Witter & Co., 632 South Spring
Street.
Mr. Bush
was
formerly
LOS ANGELES,
with William R.
Staals &
With Pierce Kielsmeier
Calif.—Merritt R.
Olds has joined the staff of Pierce
and Kielsmeier, 539 Ramopa St.
He was previously with La Montagne & Co. and Eastland-DougPALO ALTO,
lass & Co., Inc.
PASADENA, Calif. — Frank D.
has been added to the staff
Rose
G.
of Leo
MacLaughlin Securities
.Company,
South
54
Robles
Los
David-
Schlessinger —
Industry Asso¬
ciation of New York, Inc., 99
Church
Street, New York 7,
Y.
N.
Perlstein, secretary. Mr.
formerly with McGrath
Securities Corporation.
has
Ericson
Calif.—Merrill V.
added
been
staff of Francis I.
to
the
du Pont & Co.,
Diego Trust & Savings Build¬
San
-in
New
England
in
Facts
—
six
aboul
New
Mass.
Industrial Bulletin
(October 1958)
containing articles on "Handi¬
capped Workers, Hiring of Mi¬
nors,"
"Labor
in
Review,"
"Growth
"Safety
Contraction,"
vs.
Construction"
in
dustrial
Bulletin,
Street,
New
per
and
—
New
In¬
New
York
Y.—
N.
13,
Keynesian
K.
Dy¬
Kurihara
University
Press,
&
Hotel Coveli Lobby.
Company.
Pollacchi
(Special to The Financial
Chronicle)
BOSTON, Mass. — Romeo Desmarais is now with Palmer, Pol¬
lacchi & Co., 84 State
Street.
Conditions
and
Commerce
—
in
documents,
U.
of
Government
S.
Printing Office, Washington 25,
C.—10c.
of
name
198
Market
Rich •& Co.,
Street,
has
been
Lind,
changed to United
Planning Cor¬
poration.
Labouisse,
and
Woolfolk &
Shober.
5
page
f
..
,,
Zoning—New
York Department of Commerce,
112 State Street; Albany, N. Y.
—
•
Relations
J.
Section,
Maintaining
and
Economic
Stability
Growth—Federal
Reserve
Bank of
Boston, 30 Pearl Street,
Boston, Mass. (paper).
Per Unit
of Output in
Steel Industry,
No.
1200
1939-55—
U.
—
S.
De¬
Harkness
BEACH,
&
., 4
* t
f
*
.
*(
*
•
-"»
*
*
*
Calif. —Gill
with offices in the Security Build¬
Avenue,
New York
1,
N.
There
choose
Moore and Mr. Johnson
Chester
Rapkin — Columbia University
Press, New York 27, N. Y.—$4.
Pioneer
Educator in
the
Guggenheim
—
30th
on
Air
were
anniversary—
This Is Japan—1957—Life, art and
customs of the Japanese Nation,
profusely
illustrated
—
$6.50
move¬
investing policy questions of how to
we
Uncertainty of Protection
During the First World War Inflation Era-in Europe the
\vealthy capitalists sought protection through flight into equities
backed by tangible assets, preferably in the form of
physical
goods.
irregularity and unpredictability.
In
casualty companies in particular, as
well as oil producers and textile
issues, did well. Badly perform¬
ing issues included steels, shipbuilding, railroads, public utilities
and
banks.
and
In the Second
World War era, as
expected, the rentier fared
The holder of equities in France
secured partial protection
over the long-term—but less
than from land or gold. In the United
Kingdom and the United States no distinct flight from the cur¬
worst.
into another medium occurred. In the U. S. again there was
absence of correlation between
monetary inflation or commod¬
rency
an
ity price changes
on the
the other. Typical of this
periods.
Thus
one hand, and stock
price movements on
divergence were the 1946-'48 and 1949-'51
anticipation of the short-term price
correct
even
fluctuations would
not
have
led
to
protection
through the
-
• -
Stocks
as
a
the stock
Hedge
market in
providing an infla<hedge in various countries during the period surrounding the
and the continuing Cold wars, namely the
period 19371956, is shown in the following table.
tion
last
Hot
Comparative Changes in Cost of Living, Bond and Stock Prices
1937-1956
,V:
V,
!
-'<■
*'
r
Proportion of
Cost of Living
Cost of
Bond
130%
+
Stock
Prices
Living-
Sweden
Prices
—23%
Rise Offset by
Stock Rise
130%
+
100%
Western
Securities is
investment
vard.
Claude
E.
Michael
60
56
+
144
+30
+
133
92
5
+
180
54
4-6
+
140
180
L.
Woody, Jr., members of the New
mitted
to
Quoid
&
Exchange, will be ad¬
partnership in
Mac¬
Coady, 120 Broadway,
•Mow
Mork
FMfv.
York
Stock
m^mVwrs
of
90
—55
+
6p
37
—20
+4800
200
—40
+
47
-
+
85
2
+
33
40
1937-1951
+
—20
+
32
178
+
80
83
—30
+
80
97
+
108
—60
+
260
240
The
Charles
+
180
"
1937-1956
1st,
190
+
—
1937-1950
Anthony S. Lazza-
December
77
1937-1952
Grande,
MacQuoid, Coady Partner
336
+
Kingdom
United States:
rino, Secretary.
On
+
+
____
France
Schreiner,
A.
0.7
+2400
United
of¬
Stanley McLay,
are
+
Australia
Santa Monica Boule¬
Officers
President;
from
41
+22
Switzerland
engaging in
business
.+
108
Belgium
(Special to The Financial Chronicle)
BEVERLY HILLS, Calif.—Great
fices at 9685
+30
+
Norway
Opens
-f 6000
Portugal
Great Western Sees.
non-uniformity in
provided by the
column.
United
And,
common
as
—
the
specific
degree
of
inflation-offset
stock may be noted from the table's last
the several intervals indicated in the
case
of the
States
show, selection of the period, and particularly its
length, for consideration may well be determining. It required
our extended bull market since 1952 to
give the equity share the
very satisfactory hedge status.
What Inflation Policy for the U. S. Investor?
the
the
In
Exchange.
the
licht of this record and the prospects, what should
intelligent policy of the inflation-conscious investor? To
our previously-posed basic
questions, "How to choose
the first of
Mitchell, Hutchins Partner
On
December
6th, John M. P.
Thatcher, Jr. will acquire a mem¬
bership in the New York Stock
ancTwiii' become a part¬
in the Exchange member firm
Mitchell, Hutchins & Co. He
Exchange
ner
of
will make his headquarters in the
New
York
City
office
at
1
Wall
between inflation-hedging and sound investment
value?", fortu¬
nately the valid rejoinder in this country is that no such mutually
exclusive
choice is
rise
recent years,
For even after the major market
stocks are still available at prices
justified by value criteria (as spelled out by us on many occa¬
sions) wholly without taking into account the inflation threat. This
over
necessary.
many
contrasts
with the situation confronting the investor in Britain
France,-where dividend and earnings yields have consistently
and
been lower than
here, consequently exacting an inflation-hedging
premium.
Street.
Hence
here
equities in general should
never
be
held
solely
because of their
Bronstein Co.
Forms
City
under
determining over-all port¬
folio
policy, and in appraising individual values.*
Street, New York
the firm
formerly with
was
inflation-protection qualities. Inflation influences
business and the economy in general should be taken into ac¬
count as merely one of many factors
on
Barney Bronstein is engaging in
securities business from offices
name
Bronstein Company. Mr.
of
Specific Portfolio Technique
B.
The logical investor should now, as always, have
part of his
Bronstein
Oppenheimer
& Co. and Brand, Grumet & Co.
capital in
common
diversified
stocks chosen according to value standards and
among
industries
and
companies
to
include
issues
supplying protection against both inflation (as in the "commodity"
John Dunne Admits
of
Engineering, New York 53, N. Y.
price
Italy
Commemorative
New York University College of
commodity
inflation-hedging
as
for¬
Age:
School
and
and sound investment-value
have previously specified? And how should
specific stock selection be slanted to accord with inflation
factors?
merly with McCormick and Co.
Y.—
Fund
deflationary 50%
was a
the pragmatic
are
between
criteria, such
President; Kathryn R. John¬
ston, Vice-President; and Bernard
J. Moore, Secretary-Treasurer. Mr.
at 460 West 24th
Insurance
a
constant worldwide absence of
a
stock
common
son,
a
Mortgage
between
In France there
was
commodity
Bruce A. John¬
are
30 cents (check or money order
payable to Supt. of Documents—
—Ernest M. Fisher and
midst Germany's inflation¬
even
25% fall in stock prices in both 1948
1949 contra-the general price level.
And our great market
boom of 1926-1929 occurred midst stable or
falling
investment busi¬
an
Officers
ness.
.
.
and
The effectiveness of
has been formed
Co.
ing to conduct
of Labor, Bureau of
Statistics,
341
Ninth
Labor
further, there has been
correlation
ments.
be
University, Princeton,
(paper) 20c.
Similarly,
Form Gill Harkness Co.
Union, The—A bibliography
Industrial
N.
And
level
New
—On request.
Local
1920-'22 and 1930-'33.
share market.
York Stock
Local Planning and
Daniel
The
.
ary holocaust post-First World War there
rise in the mark's
gold value in 1920-'22.
of
Superintendent
booklet
Now United Planning
—
are
Foreign
Commerce, U. S. Department of
Aeronautics
EAST PATERSON, N. J.
se¬
formerly
was
Weil,
Co.
Treasurer: and
Costs
Mutual
With Palmer,
firm
Howard,
Friedrichs &
stamps not acceptable).
previously with E. F. Hut-
from
a,
Observations.
partment
MODESTO, Calif. — Clay D.
now connected with Da¬
was
with
Watters
Vice-Pres.;
27, N. Y.—$4.50.
Venezuela—Bureau
Bulletin
Hatch is
vidson & Co.,
in a
Officers
engage
business.
Mr.
an
to
York
Living
Cres¬
S. Watters,
President; Hilda
Gaillard, Vice-Presictent; and Sid¬
ney M. Bright,
Secretary-Treas¬
York
year.
Introduction
Basic
With Davidson Co.
Building to
curities
State Dept. of Labor, 80 Centre
$3
in the Queen &
(Special to The Financial Chronicle)
England
States—New England
Council,
Statler
Building,
Boston
16,
Man Hours
ing.
cent
(paper), $2.50.
Princeton
SAN DIEGO,
«.
Germany, fire insurance
ORLEANS, La.—Watters
Company, Inc. has been formed
&
LONG
Avenue.
Francis I. du Pont Adds
■
m
The results evidenced great
Watters & Co. Formed
and
IIow & Why Industry Is Humming
D.
Adds
Workmen's
Leo M.
Benno
and
Commerce
—Columbia
Leo MacLaughlin
in
—
namics—Kenneth
Co.
..
Parle,4
was
urer.
Injuries
"business
Morgan Adds to Staff
R.
John
Banking Department,
Manufacturers Trust Company,
Compensation
Calif.—Rex M.
*
Further compounding the investor's
difficulties is the unpre¬
dictability of individual stock price movements even if "the market"
level in general should be
correctly discerned.
M.
tional
j
Head
Joins Mitchum,
Malcolm
are
rence
with offices
Boulevard.
LOS ANGELES,
».
prices.
listing current currency
quotations
for
137
countries
throughout the world—Interna¬
.
MIAMI, Fla.—Ira J. Klein and
L. Rivera are now with
Columbia
Securities
Company,
Ga.
NEW
Foreign
Folder
ton
Officers
City Fiscal Relations Commit¬
tee, 270 Broadway, New York 7,
N. Y. (paper).
and Harold B. Durham Sr.
connected with Securi¬
Jorge
.
president and treasurer, and Law¬
now
With Columbia Sees.
Atlanta,
Form Dumont Sees.
—t
City—Re-;
port
D.
ties, Inc., Farmers Union Building.
Streets,
(paper).
I
\
Mayor of the City of New York,
He
etta
16,
Subdivision
Relations
State and
Two With Securities Inc.
are
National Bank, Broad and Mari¬
Dumont Securities
Department,;
Corporation
Street, Albany, N. Y. has been formed with offices at 80
request.
;
! Wall Street, New York City to
in a securities business.
engage
Fiscal
Co., First National Bank Building.
Long
in
Southern
,
affiliated with Lackner &
Colo.—Eugene
&
State
—On
—
Jumping
Commerce
State
Join Lackner Co.
Land
Are
Citizens
—
...
.
Control
DENVER,
&
Sales
Georgia
270
Madison Avenue, New York
Fifty-fifth Street.
become
—Batten, Barton,
Osborn, Inc., 383
Avenue, New York 17*
(paper), on request.
Y.
Why
Accounting
Trends
and
Tech¬
niques—lOth Edition—American
Corporation,
DENVER, Colo.
Continued
«.
Consumers
Madison
N.
been
Premium
The
con
Durstine
prior thereto with Sills, Min-
have
Shimbun
and
Plans:
and
pro
formerly with Bache & Co.
were
Asahi
Stamps
Credit
Co., 39 South La Salle Street. Both
ton & Co. and A. C.
The
Tokyo, Japan.
be¬
with Reynolds
associated
—
Japan Publications Trading Co.,
Ltd., Central P. O. Box 722,
(Special to Thf. Financial Chronicle)
41
Thomas D. O'Brian will acquire
a
membership
in
the
New
York
Stock Exchange and on December
6th will become
V.
Dunne
New
York
New York
&
a
partner in John
Co., 120 Broadway,
members of the
City,
Stock Exchange.
area)
and
deflation
assets should be
and
perhaps
(as
utilities
other
fixed
interest
You will attain the maximum
ables
in
and
gold
mining).
basically diversified to include
securities
Also,
his
government bonds
(as
tax
exempts).
in meeting the inflation imponder¬
by diversifying among the categories of investment, and also,
the
case
of
dividual issues.
common
stocks
among
industries
as
well
as
in¬
.
v
42
The Commercial and Financial Chronicle
(2318)
The
Indications of Current
following statistical tabulations
latest week
Business Activity
week
or
month available.
month ended
or
Latest
IRON
AMERICAN
Indicated
Month
Week
Ago
§100.3
*100.1
101.3
97.6
.Dec.
2
§2,469,000
*2,463,000
2,493,000
2,356,000
7,158,750
7,050,000
6,997,350
6,851,100
*7,965,000
7,964,000
7.530,000
7,657,000
BANKERS'
42
26,483,000
.
output
(bbls.)
Distillate
fuel oil
output
25,658,000
(bbls.)
(bbls.
2,772,000
12,163,000
12.289,000
11,979,000
7,891,000
8,275,000
7.742,000
172,739,000
171,843,000
173,087,000
31:
__________•_
$276,642,000
201,162.000
14,416,000
10,195.000
119,436,000
98,755,000
71,744.000
19,175,000
17,125,000
33,250,000
132,602,000
122,636,000
87,470,000
$842,818,000
$805,114,000
$661,627,000
11,546
9,583
10,698
$749,800,000
$591,000,000
$669,COO,00b
$574,000
warehouse
$257,806,000
257,803,000
13,833,000
—
$294,379,000
-281,130,000
.
$549,000
$547,000
credits
Dollar exchange
Based on goods stored
foreign
and
shipped between
countries
153,580,000
35,978,000
36,105,000
33,929,000
161,656,000
155,288,000
148,661,000
Nov. 16
46,768,000
47,425,000
47,715,000
45,293,000
freight loaded (number of cars)
Nov. 17
Revenue freight received from connections (no. of cars)—Nov. 17
763,876
772,761
828,741
766,216
651,865
657,639
676,559
.'
BUSINESS
35,144,000
160,460,000
654,898
-—.
Ago
RESERVE BANK
Oct.
.__
Total
Nov. 16
—.
Year
Month
8,242,000
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at—
—Nov. 16
Kerosene (bbls.) at___—______
Nov. 16
.
Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at
Previous
OUT¬
shipments.u_.—
11,943,000
Nov. 16
a
2,704,000
of
Domestic
2,351,000
2,619,000
Nov. 16
—
.
FEDERAL
—
YORK—*As
Domestic
26,310,000
^
Nov. 16
—-—
fuel oil output
26,714,000
ACCEPTANCES !
Exports
.
_—.—-—_
Kerosene
NEW
Imports
and
gallons
Residual
GF
INSTITUTE:
condensate output—daily average (bbls. of
each)
_____
Nov. 16
Crude runs to stills—daily average (bbls.)
Nov. J6
Gasoline output (bbls.)
:—a——
Nov. 16
oil
Crude
DOLLAR
STANDING
PETROLEUM
AMERICAN
of that dates
are as
Month
2
(net tons)
of quotations,
cases
either for the
are
Latest
Equivalent to—
Bteel ingots and castings
in
or,
Agn
—Dec.
(percent of capacity).
shown in first column
Dates
Year
Week
INSTITUTE:
STEEL
AND
operations
steel
Previous
Thursday, November 29,1956
.
.
production and other figures for the
cover
that date,
on
.
•.
INCORPORATIONS
UNITED
STATES—DUN
INC.—Month
(NEW)
&
IN THE
BRADSTREET,
October
of
A
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
CIVIL
ENGINEERING
CONSTRUCTION
-
CASH
IJ.
COMMERCIAL
construction
S.
U.
Nov. 22
State and municipal
,
$550,482,000
$305,501,000
202,816,000
419,790,000
216,313,000
107,749,000
167,036,000
130,692,000
90,228,000
116,652,000
99,146,000
73,019,000
Nov. 22
COAL OUTPUT
S.
(U.
BUREAU
DEPARTMENT STORE
17,521,000
50,384,000
31,546,000
16,169,000
10,420,000
*10,280,000
10,540,000
10,486,000
In
=
Nov. 17
640,000
672,000
692,000
609,000
In
-Nov. 17
100
152
137
129
142
kwh.)
(in 000
output
BRADSTREET,
—
DUN
.Stocks
11,439,000
11,589,000
11,391,000
As
Nov. 22
Finished
steel
Pig iron
207
240
267
(per lb.)
(E.
Sc
.Nov. 20
5.622c
5,622c
5.622c
.Nov. 20
$63.04
$63.04
$63.04
$61.33
$61.17
$56.83
$45.83
.Nov. 21
35.700c
35.700c
39.475c
42.925c
5.174c
of
Nov.
(New York)
Lead
(St.
Louis)
34.775c
Production
106.000c
500-Ib.
SEED
16.000c
15.500c
15.800c
15.600c
15.800c
15.300c
13.500c
13.500c
13.500c
13.000c
.Nov. 27
89.35
90.45
90.98
94.94
Crude
Produced
Refined
97.47
98.57
107.62
100.65
101.80
111.07
99.20
99.52
100.65
109.60
.Nov. 27
97.16
97.47
98.57
107.62
.Nov. 27
91.62
92.35
93.38
102.63
Stocks
-Nov. 27
95.16
95.62
97.31
106.21
Produced
-Nov. 27
98.09
98.09
98.57
107.80
Shipped
97.78
98.57
99.68
108.88
U.
S.
Group
.Nov. 27
—
3.37
3.28
3.24
3.94
3.91
3.84
3.30
3.73
3.71
Nov. 27
3.80
3.78
'
3.64
3.30
3.,93
3.91
3.84
4.30
4.25
4.18
——Nov. 27
4.06
4.03
.Nov. 27
Group
Utilities
3.87
3.87
Group
——Nov. 27
Group
COMMODITY INDEX
MOODY'S
3.89
Nov. 27
n°v-
(tons)
1
Production
Percentage
of
Unfilled
3.84
3.77
424.6
419.5
251,985
orders
at end of period
(tons)
AVERAGE
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
DEALERS
LOT
EXCHANGE
Odd-lot
of
Number
95
94
104
428,989
477,587
442,344
599,443
109.60
109.53
109.4©
dealers
by
ON
N.
106.98
1,333,750
1,070,761
1,478,649
$57,051,834
$81,390,885
3
n°v.
Nov.
3
5,575
5,457
3,822
899,422
738,351
879,614
Nov-
3
$45,119,535
by dealers—
of shares—Total sales
n°v*
3
216,350
sales
™ov.
3
other
sales
Dollar value
904,997
743,808
888,436
$35,997,678
838,716
$45,227,452
Number
Short
184,060
of
Nov.
shares
TOTAL ROUND-LOT STOCK
EXCHANGE
184,060
170,200
Fiber
484,510
764,100
round-lot
SALES
ON THE N. Y.
OF
Other
METAL
560,790
408,140
10,505,330
7;875,980 *
10,680,240
9,907,610
11,036,650
8,220,650
11,240,430
Other
_
1,448,960
1,253,670
189,G40
291,270
194,280
1,414,970
Nov.
sales
1,028,650
297,610
-
Other
Other
Total
Short sales
PRICES
Short
Other
Total
1,593,990
1,232,880
322,220
286,960
Silver,
New
45,500
25,930
41,000
Silver,
London
399,360
■241,960
330,700
22,200
235,570
267,890
371,700
257,770
458,885
342,271
545,048
87,480
63,630
Nov.
570,979
470,176
98,810
406,546
658,459
480,840
78,680
599,818
500,950
698,628
,
579,630
LABOR
—
2,413,195
(1947-49
NEW
=
SERIES
—
U. 8.
430,5?0
2,316,228
DEPT.
All
2,233,238
295,160
1,775,120
2,664,318
2,070,280
1,
figure.
1956,
Nov. 20
115.7
*115.7
^Includes
1,054,000
against Jan. 1,
Monthly Investment Plan.
barrels
115.2
111.1
87.6
*87.8
88.3
84.7
103.1
*103.3
103.6
98.4
79.2
80.6
84.6
73.0
124.0
*124.0
123.1
119.2
Nov.
and foods
of
1955 basis of
foreign
92,167
*80,615
67,235
29,389
*27,959
26,813
46,310
*43,507i'
J.
42,323
QUOTATIONS)—
.
'
'
*
,
38.623c
(per pound)_
16.000c
;
crude
2(j
runs.
125,828,319 tons.
tBased
tNumber
on
of
new
orders
annual
not
capacity
reported
of
since
128,363,000 tons
introduction of
13.500c
£95,726
£96,344
"£30,896
'
£93,595
£94,288
'
91.176c
-
S0.750c
91.794c
78.869d
79.958d
$2.79205
-
-
13.000c
£90,696
-
-
-
$2.78457
$2.78304
/' 105.764c
lG3.734c
$35,000
$35,000
$35,000
$254,769
$255,000
$275,560
36.470c
26.470c
36.470c
_
—„
•*
33.000c
33.500c
$104,000
$1.70000
pound)—
$1.70000
pound)
96.090c
^33.C00c
33.500c
$104,000
*
•
$1.70000
33.000c
33.500c
'
$94,460
$1.70000
grade ingot weighted average
*
'
$1.70000
SI.70000
$1.70000
$1.70000
$1.70000
$2.60000
:
$2.60000
$2.60000
■
-
■,
-
27.100c
.__
—
.
27.100c
Not avail.
25.000c
25.000C
Not avail.
35.250c
35.250c
32.500c
64.500c
64.500c
64.500c
$2.25
:
___
♦Revised
£106,589
13.500c
14.000c
price)
♦•Nickel
producers'
JIDomestic
£115,144
13.500c
14.000c
ounce)
grade, primary pig
Magnesium ingot (per pound)_:
(per
£106,881
£113,712
.f.'
(check)
(per
15.500c
1 15.300c
—._L„
(per ounce)
S.
16.000c
15.800c
£117,175
'
15.800c
79.935d
Exchange—
per
43.030c
43.411c
£115,457
•
(per pound)
97% grade
Bismuth
35.597c
37.511c
.
§Cadmium
Cobalt,
.
'
(per pound), boxed Laredo
refined (per ounce)_______
(per pound)
Nov. 20
as
:___
Quicksilver (per flask of 76 pounds)
fiAntimony, New York boxed
Antimony (per pound), bulk Laredo
Antimony
.
160,429
2,779,489
35.431C
U.
.
*157,764
*2,754,908
_
Straits
ounce,
Aluminum, 99%
1
..Nov. 20
•Revised
—;■
-
179,061
2,969,632
—__
of October:
Exchange
York
(per
(per
431,080
1,489,256
1,767,856
Nov. 20
All commodities other than farm
of Jan.
—
Aluminum, 99%
Meats
as
New
tCadmium
278,600
2,385,309
•
;
the
——_
M.
&
refined
OF
commodities
products
in
:
(pence
tCadmium,
2,815,899
100):
Processed foods
$421,000,000
.
tons)
York
2,021,470
Commodity GroupFarm
Sterling
Tin,
Platinum,
1,546,011
Nov.
WHOLESALE PRICES,
metals
tons)
Silver and Sterling
Nov.
sales
sales
81.800,000
$478,300,000
•:
175,090
Nov.
sales
89,600,000
$425,000,000
refinery
1,029,790
Nov.
purchases
67,900,000
44,400,000
MINES)—
(per pound)—
353,150
Total round-lot transactions for account of members—
Total
84,100,000
/■>;.
(E.
*•1,038,600
Nov.
—
sales
OF
ounces)—
short
short
Nov.
r
sales
Other
Total
38,200,000
73,100,000
ttThree months, London (per long toh)_.
Zinc (per pound)—East St. Louis
"
§SZiTid, Prime Western, delivered (per pound)
t+Zinc,. London, prompt (per long ton)
ttZinc, London, three months (per long ton)
Gold
purchases
8,600,000
41,900,000
im¬
(in short tons)
(in
(in
1,302,720
floor—
the
$180,000,000
9,300,000
38,800,000
fine
(in
—Nov.
off
$203,900,000
49,500,000
.
States:
Nov.
sales
transactions initiated
$171,800,000
8,800,000
of recoverable
840,750
floor—
Short sales
821
_
(BUREAU
Nov.
the
1,831
of August:
Nov.
on
purchases
2,796
354
700
86,600,000
444,860
Total
1,929
1,042
values
1,712,580
Other transactions initiated
397
45,900,000
payments
Common, New York
;
1,601,160
1,007
>
_
Common, East St. Louis (per pound)—i
ft Prompt,' London (per long ton)
1
•_
Nov.
Nov.
purchases
Short sales
1.170
933
866
:
endowments
Export
10,315,750
OF
MEM¬
SPECIALISTS:
Transactions of specialists in stocks in which registered—
pounds)—
:
_
Lead;—
BERS, EXCEPT ODD-LOT DEALERS AND
Total
(1,000
674
2,115
etc.
334
940
1
Domestic refinery
ACCOUNT
FOR
TRANSACTIONS
546
1,152
•
Average for month
Nov.
Nov.
91.80B
bales)—
«
1_
Copper
sales
ROUND-LOT
(1,000-lb.
OUTPUT
Zinc
sales—
sales
_.
payments
Lead
STOCK
344,670
106,390
62,826.
INSURANCE—BENEFIT
Copper
429,190
531,320
Total
:
Sept. 30
Silver
(SHARES):
MEMBERS
60,332
40,785
112,651
Sept. 30__
United
2~13~900
640,970
252,812
55,123
112,850
.Gold (in fine ounces).
ROUND-LOT STOCK TRANSACTIONS
AND
ACCOUNT
FOR
Total
216,350
3
233,349
92,600
Month
purchases by dealers—
Number
159,240
85,222
129,121
55,322
(tons)
Mine production
213,900
3
Round-lot
120,288
228,441
138,880
METAL
$42,741,072
170,200
140,916
249,069
154,257
sales
Round-lot
101,707,000
:
Total
831,701
sales
96,846,000
104,902,000
30
policy dividends
7,015
3
Customers'
Sept.
INSURANCE—Month of September:
benefits
$56,370,657
Nov.
short
Customers'
273,143,000
47,268,000
96,977,000
Death
1,033,314
$70,848,894
179,798,000
69,432,000
'
69,803
Annuity
3
157,521,000
:
.
53,171
Disability
3
159,431,000
103,998,000
115,569
Matured
?:ov'
N0V*
shares—
58,104,000
50,774,000
157,352
Surrender
Dollar value
165,478,000
PAYMENTS TO
POLICYHOLDERS—INSTITUTE
OF
LIFE
ODD-
Odd-lot purchases by dealers (customers' sales)—
Number »f orders—Customers' total sales
:
103,326
LIFE
Y.
purchases)—t
(customers'
87,689,000
Shipped
294,652
94
52,108,000
(tons)
Produced
STOCK
EXCHANGE COMMISSION:
SPECIALISTS
AND
SECURITIES
—
sales
276,397
916,780
96,275,000
.>
Motes, Grabbots,
DRUG REPORTER PRICE INDEX—
OIL, PAINT AND
1949
283,400
494,196
!
Shipped
214,122
278,966
1,065,530
181,552
380,716
(tons)
Produced
399.9
276,848
364,799
526,375
1,108,180
73,623,000
Sept. 30
Stocks
3.23
437.3
(tons)—_
„_
145,109
Hull
3.38
Nov. 23
activity
1,273,839
of
Shipped
3.23
N°v- }7
Nov- 17
Nov. 17
(tons)
14,542,000
Produced
3.59
3.92
3.84
231,330
J7
13,268,000
PROD¬
(running bales)—
Stocks
ASSOCIATION:
PAPERBOARD
Orders received
13,153,000
SEED
(tons) Sept. 30
Stocks
NATIONAL
9,557,978
1:
bales
(tons)
Shipped
3.19
Nov. 27
Industrials
Nov.
.
Linters
3.11
3.71
•v
Nov. 27
Public
(tons)
Hulls—
2.88
——Nov. 27
——Nov. 27
Railroad
of
COMMERCE—Month
Meal—
Produced
——Nov. 27
Government Bonds
.
Cake and
Stocks
Average corporate
Aa
as
Stocks (pounds) Sept. 30
Produced (pounds)
Consumption (pounds)
DAILY AVERAGES:
YIELD
BOND
crop
OF
(pounds) :____
97.00
MOODY'S
DEPT.
(pounds)
100.32
Industrials
S.
Oil-
.Nov. 27
Group
J.394,066
19,302,000
9,709,495
U.
(pounds) Sept. 30
.Nov. 27
Group
158,944
872,208
18,780,000
Oil—
Stocks
.Nov. 27
Utilities
129,775
792,077
1
at mills
Average corporate
Public
154,812
736,860
18,839,000
27
(tons) Sept. 30
Aaa
Railroad
October..;
Oct.
COTTON
OF
(tons;
Stocks
Shipped
.
1,358,885
14,626,221
bales;
—
gross
AND
Crushed
98.750c
16.000c
PRICES DAILY AVERAGES:
S. Government Bonds
899,280
(DEPT. OF COMMERCE)—
(running
Received
44.000c
108.750c
16.000c
.Nov. 21
—
34.900c
110.750c
.Nov. 21
at
33.925c
.Nov. 21
.Nov. 21
(East St. Louis)
822.180
14,279,709
Cotton Seed—
.Nov. 21
at
at
U.
1
UCTS—DEPT.
at
MOODY'S BOND
of
of
as
September:
York)
Lead
Zinc
732,319
1,153,875
16,179,344
27—
27—
27___iL________________.i
PRODUCTION
COTTON'
J. QUOTATIONS):
M.
refinery at—.—
refinery at
(New
month
1
Oct.
of
as
$59.09
-Nov. 20
ton)
gross
Domestic
tin
COM¬
205
Electrolytic copper—
Export
OF
BALES:
AGRICULTURE—1955
(per gross ton)
Straits
Oct.
YORK—
October
spindles active
COTTON GINNING
10,727,000
COMPOSITE PRICES:
METAL PRICES
of
Linters—Consumed
&
INC
(per
month
NEW
DEPT.
—
RUNNING
—
OF
omitted)
consuming establishment
public storage as cf Oct.
COTTON
Scrap steel
BANK
LINTERS
Consumed
Nov. 24
INDUSTRIAL)
AND
(COMMERCIAL
IRON AGE
OF
INSTITUTE:
ELECTRIC
Electric
FAILURES
DEPT.
OUTSTANDING—FED¬
(000's
31
AND
Cotton
EDISON
Oct.
MERCE
INDEX—FEDERAL RESERVE
SALES
SYSTEM—1947-49 AVERAGE
PAPER
RESERVE
of
COTTON
I
lignite (tons)
anthracite (tons)
Pennsylvania
ERAL
As
Nov. 17
OF MINES):
and
coal
Bituminous
S.
89,188,000
NOV. 22
mmAAA*
_
$369,852,000
249,851,000
Nov. 22
construction
$357,600,000
Nov. 22
construction
Private
Public
CORPORATIONS—U.
S.
COMMERCE—Month ol Oct. (000's omitted)
ENGINEERING
NEWS-RECORD:
Total
DIVIDENDS—PUBLICLY REPORTED BY
$2.25
$2.24
pound)
figure. tBased on the producer's' quotation. tBased on the average of the
platers' quotations.
§Average of quotation on special shares to plater.
and
five
tons
or
more
but
less
than
carload
lot
boxed.
§§Delivered
where
freight from East St. Louis exceeds 0.5c.
**F.o.b. Fort Colburne, U. S. duty included.
ttAverage of daily mean and bid and ask quotation at morning session of London
Metal Exchange.
ttEielivered where freight from East St. Louis exceeds 0.5c.
Volume
184
Number 5590
.
.
The Commercial and Financial
Chronicle
.
(2319)
Jensen Stromer Add
.
MARYSVILLE, Calif.—Oscar
Allen Enlarges Staff*
B
DENVER,
Colo.—J e r o m e C.
Brown, Stuart F. Danford, Ernest
H. Lind, William J.
McGhee, John
Brown, Graham H. Garrison Vin¬
cent A. Gerdau, Albert A. Pimentel
and
Gordon
with Jensen &
S.
Webb
are
H.
'
now
■■■
f
■
Stromer, 426 Fifth
DIVIDEND
Street.
Sitton, Jack E. Soder, Roy A.
DIVIDEND NOTICES
Swanson
and Leonard C. Wilson
have, been added to the
staff of
Allen Investment
Jacob S. Weiss
Opens
International Salt
company
NOTICES
Jacob
S.
Weiss
is
engaging
in
BROAD
STREET,
NEW
The
QUEENS VILLAGE, N. Y.—
a
securities business from offices at
82-49 212th Street.
Board
of
DYeqfors of
November 28,
1956, declared
YORK
DIVIDEND
4,
Stock
o
of
COLORADO
IRON
"
1
Vice
.
KENNEDY
President
&
Secretary
At
a
.The
in
meeting
Colorado
New
a
York,
quarterly
of
the
Fuel
Board
and
New
iron
York,
divid:nd
the
in
share,
dcciared,
I.
Case
76th
Company
Dividend
A
Racine, Wis., November 26, 1956',':
dividend of $1.75 per share upon the out¬
Preferred Stock of this
company has
declared payable January
2, 1957, to hold¬
been
ers
of
at the close of business December
No dividend action was
taken on the
Stock.
two
T.
and
regular
B
1956
The Board of Directors of
Ameri¬
NEWMAN, Secretary.
can
Export Lines, Inc.
held November
at a
of
stock
payable December
stockholders
ber 3,
ALCO PRODUCTS'
1956.
of
30 Churrh
of
one
dollar
seventy
The
dividend
of
Directors
the
record
W.
Trust
Board of Directors of
makers of paper
drinking
Dixie
Cup Company,
cups
and
food
Com¬
5% Convertible Preferred
A—Dividend
No.
13
Stock,
stockholders
Secretary
of
record
1956.
Common
Stock—Dividend. No.
per
20,
1956
December
to
10,
96
(quar¬
of
R.
November
26,
Secretary
dividend
(25c)
1956.
clared
AMERICAN
of
this
twenty-five
at
the close of business Novem¬
ber 30, 1956.
An extra dividend
per
share
rate
was
A
dend
raised
fourth
from
50?
quarter
dollar
share
per
January
holders of record
11,
1957, to stock¬
the close of busi¬
at
November 30, 1956.
G.
also been
declared, payable
26,
1956,
to
stock¬
record
on
December 7, 1956.
at
the
1956.
on
December
Carl M.
Anderson,
27, 1956
Pullman
Incorporated
357th Dividend and
90th Consecutive Year
close
of
of
Quarterly Cash Dividends
A regular
quarterly dividend of
seventy-five cents (75*) per
share will be paid on Decem¬
ber 14,1956, to stockholders of
record November 30, 1956. An
extra dividend of one dollar
Public Service Electric
and Gas
Company
($1.00)
per
share will be paid
January 7, 1957,
on
N.
to stock¬
holders of record December
14, 1956.
J.
Secretary.
CHAMP CARRY
President
to
E. I. DU PONTDE NEMOURS &
COMPANY
an
DIVIDENDS
The Board of Directors has de¬
The
Board
and
(60c)
par
November
""*
L.
a
Directors
per
of
share
has
declared
(30c) per
of
sixty
capital stock
Corporation, payable
on
the
of
Wilmington, Del,, November 19, 1956
The
record
Board
of
Directors has declared this
day regular quarterly dividends of $ 1.1 2
Vz
a
REGNER, Secretary-Treasurer.
share
the
on.
Preferred
Series
.*
►
and
ferred
Milwaukee, Wis.
November 20, 1956
following dividends
for the quarter
dividend
of the
15, 1956 to stockholders
30, 1956.
G.
clared the
a
thirty cents
year-end
value)
December
>
of
dividend
share
cents
Treasurer
QUARTERLY
DIVIDEND
quarterly
10,
/■
Burns,
7,
Secretary
November
CBricgs&Siratton]
($3
Robert G.
the close
at
December
on
1956.
GREENBURGH,
BERGEN,
November 26, 1956.
share will be paid on Decem¬
ber 21, *1956 to shareholders
record
on
21, 1956, to stock¬
business
of
cents
NEWARK,
EXTRA DIVIDEND of 50? per
of
a
declared,
was
Corporation, payable
of
A. R.
divi¬
of 60? per share and
204
stock has
common
The QUARTERLY DIVIDEND
60?.
on
of one
($1.00)
declared, payable
was
common
holders
CORPORATION
52nd iHridvnd
dividend of
the
December
Treasurer.
business
METALS, INC.
record
ness
outstanding
December
on
BRICGS & STRATTON
of
the
on
stock
MACHINE AND
of fifty
(50^)
declared, payable
December 18, 1956, to stockholders of
share has today been de-:
per
business
7, 1956.
extra
on
was
DIVIDEND No. 88
A
WECKERLEY,
of
close
the
December
record
1956.
second
January 2,
on
holders of record
16, 15)56
dividend
share
per
payable
Corporation
share—payable December
stockholders
H.
Dated:
10,
1957 to
December
10,
quarterly
JOHN
terly)—50c
..<■
Broadway, New York 6, N. Y.
($1.00)
COMMERCIAL SOLVENTS
January
share bn^
a
convertible
December 18, 1956, to stockholders of
Series
(quarterly)—62Vzc
share—payable
per
Sec'y.
record at the close of business Novem¬
ber 30, 1956.
An additional extra dividend of one
<2>
con¬
tainers, has declared the following dividends:
CARL A. SUNDBERG
61
Secretary.
p""S DIXIE CUP COMPANY
The
on
preferred
preferred stock, have been de¬
An
dollar
HAMILTON,
$1.00
and
$4.00
share
A
regular
of
1956.
the
at
Exec. Vice Pres. &
cents
declared
share
a
1957, to stockholders of record
MIAMI COPPER COMPANY
902
December 3, 1956.
Checks will tr mailed by
Irving
pany, Dividend Disbursing Agent.
stock,
clared, payable
not be closed.
J. OSBORN
close
cents
per share on the Preferred Stock
and
twenty five cents (25(f) per share on the
Common Stock of this
Company have been
declared payable January 1. 1957 to
holders
of record at the close of business on
Decem¬
ber 11, 1956. Transfer bocks will
not be closed.
HERVEY
McGREW,
Secretary.
COMPANY
has
1956.
31,
forty cents a share ($.40) and an
additional year-end dividend of
forty cents a
($.40) of $12.50 par value Capital
Stock,
payable December 14,
1956
to stockholders
of
JOHN
($1.75)
November 27, 1956
Board
87 XM
per
share
November 21, 1956
of
close of
share on
a
the common stock,
the $3.50 cumulative
amount
cents
at
at the
December 10,
Company will
1956,
C.
MINING
DIVIDEND NO.
1956
Decem¬
November 9.
five
10,
stock¬
to
series
December
record
1956,
of
also
^ Wm
Company, payable
21,
on
Quarterly dividends
MERCKgof 254
the^ capital
on
November
Common Dividend No. 130
Dividends
cn
HOMESTAKE
Secretary
Preferred Dividend No. 194
of
a
c.l.nielsen,
■
stock, in the
payable
December
on
and
share
a
The stock transfer books of the
7,
regular
the
on
business
j $50 par
of sixty-
sha^e,
D.
.
Street, New York 8, N. Y.
f
14,
record
INCORPORATED
per
three-quarters
stockholders
business
quarterly dividend of fifty cents
(S.50) per share on the common
to
and
A
amount
dividend
declared,
were
to
cents
quarterly
meeting
21, declared
CENTS
holders of record
of
cents
o'.ose
The
December
1956.
stock
fifty
the
series
the
of
held
January
at
1956.
the
value preferred
sixty-eight
share,
10,
in
of
payable
record,
on
stock
one-lialf
$50 par
of
AMERICAN EXPORT LINES, INC.
•
L.
dividend
preferred
the
Stock
record
'12. 1956,
-Common
value
Common
standing
FIFTY
stock of this
Directors
common
amount
of
December
on
quarterly
:
was
stockholders
business
l
(Incorporated)
to
the
of
Corporation,
November 28,
on
on
corporation,
per
NOTICES
1957
J.
AND
has been declared
the
DIVIDEND
RAHWAY, N. J.
A dividend of TWO DOLLARS
AND
Dividend Notices
the
JOHN A.
FUEL
CORPORATION
me
Preferred
company; payable January 1, 1957,
stockholders of record at the close of business
December 14, 19561
:
THE
Y.
on
MERCK & CO.. INC.
NOTICES
DIVIDEND NO. 170
+Ms
""""-rn"
"n
the regular quar¬
terly
dividend
of
Sl.yio
per
outstanding 5Vz% Series Cumulative
cn
N.
NOTICES
Company, Mile
High Center.
CITY INVESTING COMPANY
25
DIVIDEND
Stock—$3.50
able
of
87W?
January
record
January
at
a
on
Series,
25,
1957,
to
the
close
of
the
both
Pre¬
pay¬
stockholders
business
on
10,
to
stockholders
close of business
P. S.
du
on
of
TRA!LM0BIIE
Class of
record
Stock
Per Share
November 27,
4.08% Cumulative Preferred
$1.02
.
4.18% Cumulative Preferred
.
..
1.045
4.30% Cumulative Preferred
.
.
1.075
.
$1.40 Dividend Preference
UNITED
35
Common
1956.
Pont, 3rd, Secretary
BHR EVE
All dividends
are
payable
before December
stockholders
PORT,
to
Dividend Notice
of record Novem¬
The
Board of
declared
F. Milton Ludlow
Secretary
"•CHEMICALS K
one-half
a
holders
OF
THE
EAST
(37}44)
on
January
2,
of record at
December
PVBLIC SERVICE
CROSSROADS
Directors has this date
dividend of thirty-seven and
cents
share on
Corporation,
per
the Common Stock of the
payable
ness
PLASTICS
LOUISIANA
on or
20, 1956
ber 30, 1956.
FIBERS
GAS
CORPORATION
45
the
at
^
Dividend
Stock—$4.50
share
1957; also $2.00 a share
on
the .Common Stock as the
year-end
dividend for 1956, payable December
14,
1956,
ending Decem¬
ber 31, 1956:
1957,
to
1956.
B. H. Winham
November
28,
1956
Secretary
CELANESE
JORPORATION OF AMERICA'
180 N.adison Avenue, New York
16, N.
RICHFIELD
Y.;
THE Boardthe Directors has this day
of following dividends:
declared
4i/2% PREFERRED STOCK, SERIES
A
The
regular quarterly dividend for
quarter of $1.12)4 per
share, pavable January 1, 1957, to
the
current
holders of" record
ness
the close of busi¬
at
dividend notice
The Board of Directors,
12, 1956, declared
seventy-five
7% SECOND PREFERRED STOCK
The
regular quarterly dividend for
the current
quarter of ? 1.75 per share,
payable January 1, 1957, to holders
of record at tLe close of business
per
share
December
on
1956 and a special dividend of fifty cents
stock of this Corporation, both payable
15, 1956,
per
stockholders of record
Norman F. Simmonds,
COMMON
cents
to
STOCK
share payable Decem¬
ber 21, 1956, to holders of record
close of business December
the
R.
O.
RICHFIELD
at
7,
1956.
GILBERT
Oil
Secretary
Corporation
Executive Offices: 555 South Flower
Street
Los
November 27, 1956.
at
close of business November
23, 1956.
December 7, 1956.
25
at a
meeting held November
regular quarterly dividend of
share for the fourth quarter of the
a
cents per
calendar year
December 7, 1956.
stock¬
the close of busi¬
10,
Angeles 17, California
Secretary
the
43f
and Financial Chronicle
The Commercial
.
Thursday, November 29,1956
.
.
(2320)
*4
billion
BUSINESS BUZZ
T
(officially estimated figbillion) this year for
This is because
functions alone.
Capital
crises
to
\ fk ff
IM/
spend
S.
U.
policy would seem to be
inevitably on the way. This is
thought to be the certain con¬
sequence of recent and continu¬
ing world troubles.
The outOnes of new policy, however,
nre likely to
take some months
tary
in
readjustments
broad
Such
pansion
few years,
more or less.
Thus, the United
States finished the war with the
What
foreign-military
.
to
seem
every
occur
other
by
S.
and
U.
the
maneuvers,
Supports
Marshall
Plan.
This, it is recalled, provided for
and far-seeing"
;tep by which the United States
—in the rationale of the time
—was to help Europe get back
"generous
•a
economic
its
in
An eco¬
feet.
nomically strengthened Europe
would have both the physical
-means
and the will (since in
fTruim an-Eisenhower
book all
social malaise stems from pov¬
settled
nation
This
i
defend itself,
to arm and
erty)
to
down
inflationary
steady
of
billion
$42 billion „is the probable cost
of domestic and
foreign mili¬
the U. S. and
economic aid.
tary spending by
foreign
this has exerted
All
the
troubles would be taken care of.
high,
/'!
to
sticking
Subsequently
kept
Reds
the
]breaking each new frame for
TJV S. foreign-military policy,
"guerillas"
having
toy
toy the
nally
Turkey,
threaten
and
Greece
1
invade
Berlin blockade, and fi¬
by the Red invasion of
the
In
U. S. military
process
alone
spending
to from
annually to
rose
billion
$13
some
nearly $45 billion.
Despite the inherited tensions
have
continued
since
President Eisenho wer took
office
in
January,
1953,
the
•frame or basic outlines of U. S.
..foreign-military policy, partic¬
ularly
in
their fiscal conse¬
quences,
has remained
rela¬
tively steady.
be because the Reds
their stooges into
This may
sick
not
military contlict except in
(ndochina, which the Adminis¬
tration decided, after a period
of
indecision, was not worth
open
fighting for. The relative sta¬
bility also may be explained in
part
by
the fact that even
though the United States with-;
from
drew
the
Korean
war
the objec¬
tives
fought, the
Reds did not appear anxious to
achieving
for which it
without
promote open hostility again on
such a large scale.
of
Nature
Policy Frame
stability of U. S. policy which
has
prevailed since 1953, the
Administration has been
able
the
at
force
lower level of total
is
It
which
concept
so
from
U.
S.
of
in
breached
of
One
from
recent
is
these
events.
4-hour
the
nuclea r
retaliatory
war
on
Russia.
A
but hitherto
startling
sur¬
passed fact is that every major
American air base in Western
in
and
Europe
Arab-populated
countries was-denied to the
ure
of
some
validity
that
Hungarian
East
Middle
and*
crises.
It
Ground
of
asserted,
not
their argu¬
reliance
for
is
land
that
Sixth
course,
that the United
States remotely
intended to
Fleet
be
to
Much
it
of
combat
known
to
Many
Fleet
stop¬
from
batted
and
many
will
exchanged,
will
be
and
hearings will be held,
fore
un¬
be¬
foreign-military pol¬
a
new
icy frame is evolved some time
down this fact, which
of course, readily ascer¬
tained by the most routine Rus¬
played
was,
sian
next
year.
observers
see
Administration,
the
(1)
Nevertheless, key
these possibilities:
without Congressional
espionage.
Ordinarily the
'•noclus operandi of the present
or
Administration
later
retaliation,
receding,
threatening
made
a
upon
hostile
that
fact
ready
to
the
to
if
even
the
Reds
Navy
ding.
prod¬
may
the
need for a
sea and
a
working
power,
away
from main reliance upon
(2)
was
over
see
land
retaliatory
move.
strike ail
j
(Chicago, 111.)
Bankers
Jan. 18, 1957
(Baltimore, Md.)
Baltimore Security Traders
22nd
sociation
Hotel.
March
power.
course,
United
These
bases
were
for
bases,
air
of
constructed by the
States
itself
at
an
ex¬
Southern
the
at
As¬
Mid-
Annual
Dinner
Winter
<•
(Toronto, Canada)
1957
8,
Bond
Associ¬
Traders'
ation
25th
at the
King Edward Hotel.
anniversary
Mar. 18-20, 1957
American
dinner
(Chicago, 111.)
Association
Bankers
Uth National Instalment Credit
Conference.
April 21-23, 1957
Texas
(Dallas, Tex.)
of
Investment
Association
annual
Group
Bankers
at
the
Statler
Hilton
will
ciation
Convention
Annual
at
the Homestead.
Oct.
29-Nov.
3,
1958
(Colorado
Springs, Colo.)
National Security Traders Asso¬
ciation
Annual
Convention
at:
the Broadmoor.
;
|
O. C. Collins Opens
(Special to The Financial Chronicle)
TALLAHASSEE,
Fla. —O.
cj
Collins is engaging in a securities
business from offices here.
air power.
military
Total
tend
and
(Hot Springs, Va.)
3-6, 1957
National Security Traders Asso¬
to
rise
spending
much
above
TRADING MARKETS
its Western Eu¬
use
the
world
is
a
current
factor
the
probable, not less than $38
Botany Mills
air bases to supply the
Hungarian patriots with arms
and shells during their hour of
ropean
threaten
country
intended
air
make
to
war
Indian Head Mills
to
if
United States Envelope
Morgan Engineering
Russia, to amel¬
plight of the Hun¬
on
the
Campbell Co. Com.
Fashion Park
Likewise, it is doubted
this
iorate
A. S.
National Co.
garians.
Riverside Cement
point is
that the United
did
have
not
an
Carl Marks
FOREIGN
tunity to contemplate these pos¬
sibilities.
It
could
not
&
Co. Inc.
oppor¬
use
the
50
SECURITIES
BROAD STREET
SPECIALISTS
NEW YORK 4,
Sightmaster Corp.
LERNER & CO.
N. Y.
Investment
Foreign-leased
Association
9th National Credit Conference.
with
greater emphasis upon
threaten
American
Nov.
be
fourth
words
memoranda
readiness.
been
clay Hotel.
Jan. 14-16, 1957
meeting
and
back
Curiously, the Administration
has
(Philadelphia, Pa.)
1957
10,
Philadelphia Securities Associa¬
tion annual meeting at the Bar¬
Hotel.
Reds.
the
Eisenhower
ex¬
an
destinations
Ships left for
significant
Re-Making Policy
state of readiness.
was ordered to
sea
full
in
in
put
the
Jan.
touching shore
any
ping them.
the Navy. The Navy
by the Adminis¬
traordinary
and
prohibits
ordered
tration
in
unless
numbers,
argument, of course,
same
is used by
Power
The U. S.
absolutely pre¬
can
where
They
land.
sea.
from
them
any
Sea
by
come
vent
war.
Hence, they
over
some
so-
through
come
Persia.
or
cannot
must
volunteers,
Bankers
the
party- at
Club.
Toronto
opening.
cannot
Turkey
international situations short of
nuclear
De¬
State
will refrain from stop¬
these
called.
fur¬
the
the full-scale
the
that
the
For
by
forces,
sure
given
under-stressing
United States
limits its capacity to deal with
ther
pal¬
ping
Red
"volunteers"
from
mixing up in-the Middle East,
The
argument
Forces
stop
the
partment is advising its foreign
contacts that the United States
great
war.
in
the
through
East
cidentally,
great meas¬
nuclear
voking
unilaterally
intervention'
Middle
from the air
merely encourages the Reds to
take these steps short of pro¬
The
is
to
too
he said that the U. S.
as
NOT
pable dodge of "volunteers."
It also may be doubted, in¬
retaliation
use
United States during the
of the
The
and
necessarily
publication, that
far-reaching assumptions
U.
S.
policy
have
been
States
could be delivered from
air
govern¬
admitted for
re¬
the
demonstrated
was
in
long time before it is
a
will
Russian
had
have
men
some
capacity
of
war
to most hard-
observers
ment, even though it
will be
Forces
whether Eisenhower really
means
There is now a belief that tlie
Ground
The
clear
now
sure
Middle East.
do not quite know for
the
in
(New York City)
1956
Security Traders Association of
New York annual meeting and
possibility of
near-term
The Reds
government
Broken
headed
of
point
military
the
stability
economy.
Stresses
necessary
nuclear
the
limit
to
of military
and foreign aid spending. There
was even a
temporary illusion
of
a
move
toward an overall
definite policy frame
Xiave held fairly fast. The United
States pitched its main security
-the
time
same
the
From
in
Due
view, this portends something
profound
in way of eventual
change in U. S. military policy,
which, of course, dominates fis¬
cal policy, which, in its turn,
dominates the whole domestic
ment
relative
the
in
Furthermore,
Dec. 7,
Sir'
Hollywood Beach Hotel.
cocktail
Changes
Profound
upon
agony.
fairly
the
has
prevailed most of the time.
So
during
the
Eisenhower
Administration, the outlines of
taliatory
mass
employment
full
nearly
that
around
them
a
feeling of optimism, and full or
Frame
which
a
encourage
spending.
Since Korea
Steady
/did
helped
gentle
a
kept
prices,
on
inflationary
TCorea.
and
paying for them in cash. The
is
pressure
>Jn
services
and
goods
from the domestic economy
the
at
convention
annual
America
of
pressure.
instance, this year the gov¬
ernment is subtracting some $42
For
enacting the Marshall Plan
and
UN,
all
a
(Hollywood
1956
Beach, Fla.)
Investment Bankers Association
j*
simple 'good morning, very happy to see you,
would be quite sufficient, Miss Lovelace!"
"A
Eisenhower
is exerting
it
that
been
has
Mr.
under
policy
thought that in
the comfortable
of
frame
the
*
"advantage" of
foreign-military
Field
Investment
25-30,
Nov.
?s»
W
Economy
another
Still
the
adopted
In
each
with
objectives
EVENTS
crisis.
fresh
intentions in
countries,
satellite
the
continually off balance.
military
aroused suspicion
peaceful
their
COMING
Administra¬
Truman
the
not coincide with
views.}
'
that
crises
the
the "Chronicle's" own
As
a
consequence, the Eisenhower
Administration took consider¬
able satisfaction from being able
to assert it was not varying its
oeace.
As the Reds
and may or may
it more conn fort-
that
was
kept
tion
up
of
of sea power.
made
developed were on a less spec¬
scale than those which
would bridge the read¬
justment of Europe's economy
from
war
to peace,
and the
..United Nations would keep the
set
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
tacular
being
agencies
financial
able
interna¬
the
that
expectation
tional
diminu¬
in the Ground
limit on the ex¬
and a
policy
basic
will
tion of manpower
Forces,
a
the Middle East,
promised U. S. aid to that re¬
gion on a much enhanced scale.
forward to,
planned, a relative
and
settlement is reached
it probably
come
only
because
of
(4) If
in
with four hours
United States looked
Europe.
will be for
Hemisphere
oil,
but
cost
there will be other costs.
a
point in the Soviet Empire
flying time, the
any
Western
principal
Western
Administra¬
the
fairly comfortable frame.
Satisfied
that
it
could strike
tion,
evolve.
to
to
was,
of
economies
The
WELCOME
personnel at further cost.
This
manner
legislation,
new
to shell out cash to buttress the
WARM
cost in money and
and are manned by
travagant
materials,
a
the military.
the
United
on
by
another,
or
C.—Anof iKose broad readjust¬
ments in U. S. foreign and mili¬
induced
States will have in one
ARE ALWAYS
D.
more
Eventually
(3)
OUR CLIENTS
JL
ASSURED OF A
WASHINGTON,
probably
have
Congressional and national, will
/f yf/-/
JljL I i/\As
Behind - the - Scene Interpretation*
from tbe Nation's
•
•
•
Hungarian
East and
the Middle
Washington
military
Department
Defense
u
-
is $36
ure
air bases.
Likewise
TEL:
the
air
bases
HANOVER 2-0050
10 Post Office Square,
in
Telephone
Arab
the
countries
use
of
the
were
denied to
United
States.
Securities
I
|
TELETYPE NY 1 971
HUbbard 2-1990
Boston 9, Mass.
Teletype
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