Full text of Commercial and Financial Chronicle : November 8, 1956, Vol. 184, No. 5584

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

U

IV frt'OTCf

IN

MICHIGAN

OF

cm'J

91956

NOV
ESTABLISHED 1839

PERIODICAL

READING ROOM

BUw. U. 8. Pat. Office

Number 5584

184

folume

New York

WIORIAL

As

cam¬

come

really serious thought must be given

Ions

gage

despite restrained

tudy and remedial measures. The months of the

ampaigning, particularly perhaps the last fewlated old

lave

This is

ones.

existed

a

or

chosen

was

which party was

as

better position to meet this
gap; and

If Congress.
The

Ihanges have, of

field. Events have

|f

attention

revealed

that

the

are

attracting

humanity that they have

so

could

from this time

tive position in cash and governments

ter, compared with less than 35%

and

one

ahead, provid¬
of the strongest motivating

forces

ne

spending, which has risen

Marx-Engels-Lenin-Stalin-Khrushchev crowd
respect of their "ideology," which is the comterm

general economic and social
with reference to the national

they pursue. No one
precisely where all this

can,

of

course,

on

penditures

'An

-

ference

of. New

30

SECURITIES

NOW

afforded

tial

address

are

IN

sales

Government

for

undertakings in

senior

balance
of

sales

U. S.

Continued

now

AND

on

page

Con¬

bonds

preferred

Section,

Continued

starting

in

30 BROAD

ST., N.Y.

THE

MONTHLY

£6.

Burnham
MEMBERS

CABLE:

NEW YORK

22

;

Public Housing Agency

LATEST.

..

..

v

v

Bonds and Notes

/ •

"POCKET GUIDE FOR
TODAY'S

ON

LETTER

and

YORK 5, N.Y.

/

OF NEW YORK

Company

AND AMERJCAN STOCK

INVESTOR"

REQUEST

BOND DEPARTMENT

<

THE

Harris, Upham
;

EXCHANGES

•

Members
•

Bond

Dl 4-1400

Dept. Teletype: NY 1-708

v

120

New

BROADWAY, NEW YORK 5

To

.

T. L.WATSON &CO.

Markets Maintained

$150,000

CANADIAN

1832

Eastern
3

Orders

Executed

On

AU

j,

25

BROAD

STREET

NEW YORK 4, N. Y.

DIRECT

WIRES

TO

Goodbody

•

PERTH AMBOY

115 BROADWAY
NEW YORK

STOCK

&

Railway

COMMON
.

Price

in

Debentures

June

15,

United

92%

to

.

*

upon

Unlisted

198!

States

i

~

Analysis

request to

Trading Dept.

(Room 707)

Dollars

yield 4.25%

-

IRA HAUPT & CO.

MONTREAL AND TORONTO

NEW YORK

BRIDGEPORT

Supercrete Ltd.

Columbia

our

CANADIAN DEPARTMENT
Teletype NY 1-2270

% %

Due

Canadian Exchanges At Regular Rates

Payable

Exchange

British

Guaranteeing Pacific Great

SECURITIES
Commission

Stock

of

*

Members

American

BANK

Dealers, Banks and Brokers

Province

New York Stock Exchange

Exchange

Chase Manhattan

34 offices from coast to coast

-

ESTABLISHED

Stock

York

&

'

TELETYPE NY 1-4262

COBURNHAM

the




and

ARE NOW AVAILABLE

Net Active

^outhtoedt

MUNICIPAL

VIEW

investment

of

page

State, Municipal

the FIRST NATIONAL CITY sank

15 BROAD STREET, NEW

securities

on.

corporate

page

on

ii
w

BONDS

BURNHAM

bank
department

stocks,

vestment, and the United Fund Group.

V.

CHEMICAL

bond

Of the total net pur¬

non-government

and

20

investors

and

of

as

COPIES OF OUR

telephone; HAnover 2-3700

CORN EXCHANGE

7%;

securities, 84% con¬
with only 16%
going into commons.
i
Among the management's exemplifying such cautiort
a marked degree, were as shown in our first table fol-:

to

■

STATE

only

lowing the Axe Stock Fund, Loomis-Sayles Mutual Fund,
Value Line Fund, Delaware, Fidelity, State Street In¬

Government,

Securities

purchases of

by

registered with the SEC and poten¬

"Securities in Registration"

Municipal

thereof

securities, and while net cash and

ire

Stale and

quar¬

net

Gordon W. McKinley

of

complete picture of issues
our

exceeded

governments were rising by 10%.

REGISTRATION—Underwriters, dealers
a

of such

chase

most

during the

companies fol¬
policy during the previous quarter. Of
of $228 million
from the sale of new

stocks

sisted

ex¬

the

on

of the

during the quarter, portfolio

little

personal, income will continue to advance
this
will make
possible a substantial

-

shares

upward,

very

start

,

.

large

by Dr. McKmley before the Mortgage Lending
Jersey Bankers Association, Princeton, N. J.

:

securities

DEALERS

will

accounting

steadily,. and

fore-

page

boom.-

years,

the rise.. Total

will lead, but there

Continued

recent

the

with state and local government

for

or

)licies
?e

in

for

used

were

whereas portfolio buying of non-government bonds and
of preferred stocks was almost three times as

will continue to surge

ing

a

inflow

net

common

equipment

Iny rate will be under the controlling influence of

philosophy,

lowing such
fund

plant

September)

as

a

in

of

in

year.

vestment

end

investment companies are revealed
by our
analysis of their portfolio operations. Of 73 companies
covered, 43, or approximately 60%, increased their rela¬

ment

number of Tito's will exist alongside
ie Kremlin in Moscow, and not all of them
at

lunist

Sharply

continue

a

the

part of the

Employment ; will
to
rise, with unemploy¬
being held down to a virtually
irreducible minimum.
Business in¬

[ave they the hold on all of the people of all of
le territories
they are supposed to control that

at

characterise

'

and 24.1

retrenchment by fund managers.
accentuated policies of defensiveness

prosperous

year—so

it

"boom"

a

irward,

that

23

pages

*

b*^a very

prosperous

fact

475

to

for radical

the outlook for general

on

decline

a

business activity in the coming year.
I believe that 1957 will

to

mass

often asserted. Nor

|ad been supposed. Apparently,

views

my

on

high levels of the last quarter (the Dow
Jones Industrial Average rose from 493 at
the end of
June to an all-time peak of 521 on
Aug. 2, followed by

rate restrictions.

.

appear

The Market's

In order to devote most of my attention to the
housing
and mortgage markets, let me summarize
very briefly

"workmen

not the monolithic

comparativeo cash positions

McKinley appeals for non-selfish backing of
Fed's policies and freeing of VA-FHA maximum interest

the international

the world" (as the communists would like

link of themselves)

If

and

course, come in

[Tables showing 3d quarter portfolios,
changes and funds9

(5) resulting tight

Dr.

'
dramatic

most

<

aircrafts, and banks particularly attract buying; while
action is mixed in
insurance, metals, utilities and rails.
Conflicting policies regarding international oils.

mortgage market will be less tight than other markets.

to be in control

stocks, revealed by analysis of investpolicies. Management state¬

portfolio

policy evince increased caution. Airlines, sales
finance, and motion pictures meet liquidation; steels,

(4) new net capital funds demand will
but leave total $5 billion savings defi¬
ciency vis-a-vis total capital demand, with banks in no

Chief

common

ments of

and prosperous;

.

Executive

Broadly Retrench

company

consumer

rise $3 billion

aggra-

situation which would

matter who

no

and

buying of
ment

spending, increasing at a
lower rate than 1955; (2)
price inflation; (3) 1.1 mil¬
lion housing start volume will leave
industry vigorous

continue to exist which call urgently for

reeks, have brought new problems

forthcoming general busi¬
activity, prices, housing market, capital and mort¬
markets and discerns for 1957: (1) boom year

ness

Copy

a

Increase in the proportionate
holdings of cash, govern¬
ments, and corporate senior securities, with diminished;

Prudential economist surveys

larely settle very much, and this one. would aplear to have settled practically nothing. Condi-

Cents

Into Defensive Assets

Director of Economic and Investment
Research
The Prudential Insurance
Company of America

national affairs. Elections in this country

our

Funds

By DR. GORDON W. McKINLEY*

thing of the past, the time has

40

Quarterly Investment Company Survey

Business,
Housing, Mortgage Market

See It
We
exceptionally weird election

^hen some

Price

19S7 Outlook for

Now that an

paign is a

7, N. Y., Thursday, November 8, 1956

Co.

Dominion Securities
6rporajton

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

40

Exchange Place, New York 5, N. Y.,

Teletype NY 1-702-3

WHiteball 4-8161

Members New York Stock Exchange
and

other

111

Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-2708

} I

The

Financial Chronicle

Commercial and

Thursday, November 8,1

...

(1966)

2

Week's

This

For Banks,

only

Brokers, Dealers

I Like Best

The Security
hi the investment

With One Call

participate and give
(The articles

"HANSEATIC"

Try

When you

are

need markets for sev¬
place one phone

they to be

GEORGE

throughout

hundreds of markets
the country.
Our

Morris & Essex R.R. S'/zS
There

by a nationwide
of private wires is al¬

supplemented
ways

disposal.

at your

of the year.
of

tion

annually

000,000

of Dec. 1,2090

each rail-

for

Steiner, Rouse &C

2)

(Page

Members

about $1,-

expected to save

itself,

Bought—Sold—Quoted

Ferry, Inc. — Ralph
DePasquale, President, General
Investing Corp., New York City.

road.
Other studies are

securities
the possi-

few

very

are

York Stock Exchana

New

American Stock Exchange
19 Rector St., New York 6, N, Y,

Members

vessels

which the trailers are

on

rolled

off.

and rolled

on

HAnover 2-0700

The idea of the roll-on, roll-off
under way,
available that possess
including joint freight yard oper- (,fjkv uack» was conceived by
bility of gradually advancing in ation at Buffalo, and the joint
^ath and pioneered by TMT
price, whether general business usage of certain trackage between
der jperrv inc
the company
increases or
Corning and Binghamton. ' •
hg founded
|or the purpose of
decreases or
These projects have pointed to pr0viding
Puerto Rico and the
whether the the possibility of further econo- virgin Islands with "fishy-back"

department,

large trading

network

Bailey & Co.

Philadelphia-Baltimore S. E.
Philadelphia, Pa.

Members

reach

time and you

save you

Part-

T1VIT Trailer

Hoboken

first

Louisiana Securitie

3%s of Dec. 1,

_ George Bailey & Co.,
Bailey,
George A.
Pniiadelphia, Pa. (Page 2)

2000
ner,

shortly after the
This combina¬
passenger terminals is, m

into

A. BAILEY

Partner, George A.

"Hanseatic." It

TWX call to

will

Morr|s & ESSex RR-

contained in thiB forum are not intended to be, nor
regarded, as an offer to sell the securities discussed.)

eral issues, just
or

experts
country

particular security,

their reasons for favoring a

Alabama &

Their Selections

forum in which, each week, a different group of
and advisory field from all sections of the

A continuous

Get More Markets

Participants and

Forum

New Orleans,

NY 1-1557

La. - Birmingham, A

Mobile, Ala.
Direct wires

to our branch

offices

.

Hanseatic

New York

Esthblished

Associate

BOSTON

•

PHILADELPHIA

first:

SAN

be

P ■
Oil llll
rn
=

parable issues in the same

in

|fcpONNEIL&rO.
memucni

1

|

York Stock

New

I

American

Stock

Exchange
Exchange

NEW YORK B

ISO BROADWAY,

TEL. REctor 2-7815

with

the

attributes may be

.Morris & Essex R.R

Trading Marketa

Inc.

Bank of Virginia

Alabama-Tennessee Natural

Co.

Scott, Horner &.
Mason, Inc.
Lynchburg, Va.

Lackawanna

found

LD 33

Trading Markets

in

payment of both
terest of the

*Burnby Corp.

the

ware

Plus

principal and in¬

Morris & Essex 3J/2S.

Separate financial statements are
The D. L. & W. has

McGraw

Research Lab.

WeenCcmiCompavu^
1929

Tel. HAnover 2-4850

tered'

as

well

as coupon

write

Yamaichi
Established

Office

Home

Brokers &

111

Tokyo

1897

—

70

Branchei

Investment Bankers

Broadway,N.Y.6 C0rtlandU-5

Puerto

Trading Markets

-

.

year mclease ot totalTotal Assets
ass?ts'

PETROLEUM, LTD.

a

" "$500
Sept. 30, 1954
87,480
March'24, 1955—— 1 582,641
Dec. 31,
1955— 2,570,556
*Projected assets— 9,391,448

July 31, 1953

regis-"

form. The

WISENER

fol-

73 King

this amount

,

,

T

V1

a

$2,100,000 was charged
and the balance to

earned

is

pany

resulting

in an
deficit of $986,000 for the :

gressively
oneering

In 1954 fixed charges were
earned 1.90 times compared with
2.45 times in 1953, 2.43 times in

is said to be

cost

of

the road's ef¬

fastest,

possible merger with the Erie
the
Delaware and
Hudson
The
Erie
and
the
D. L. & W. have been engaged

In

New York 5, N. Y.

.

j

Underwriters—Distributor
Dealers

j

'

•

.

■

Investment Securities
-

V

Canadian and Domestic

door

the

of

arrives at its

'

.

shipper until it
destination

overseas

♦tow W/v.

cost of insurance is consider-

.

ably less
duceci

.

work

paper

is

from 26 documents to

reone

the ' bill of lading, TMT's "fishy-back?'
t j operation eliminates (1) unload-

m o s

enien t ing'at dockside; (2) loading on
lowesti shipboard;
(3)
unloading cargo

co n v

and

well maintained and*
maintenance ranks

the lowest in the country.
Another factor in the develop¬
ment of D. L. & W's. future is

the

movement of

freight,

Further adding to

37 Wall Street,

transit, remaining sealed in
trailers from the time it leaves

pithe

of trans-oceah

Burns Bros. & Denton,

in

ag-

concept;

new

ficiency is its complete dieselizat-r
tion. In addition to this the road.,
the

...

the com-

cr-use

investment

operations

n

.

,

u

,

St. We it—Toronto, Cam

circle^t^aTroU-on^roll-

faster and more economical
freight service than has - been
available in the past. TMT's serviC£ reduces crating and packing
costs, practically eliminated losses
from pilferage not handled while
and breakage as
merchandise is

The stock. I hkebest for longterm growth is TMT Trailer Ferry,
currently selling in the Over-theCounter Market at around $3.75
share
be-

C0MPAN

.

better,

TMT Trailer Ferry, Inc.

and

T.TM I'l'Hil)

*Projected to include acqui¬
of "Carib Queen" and

other assets, in 1956.

Common Stock

.

sition

Stock Exchange

In 1955 flood damage

—

CANADIAN DELHI

and

two

..

safety.

Trading Market

Maintained in

half

rrt-mDanv»s

,

steadily

a

Trailer

Firm

ubsequent dynamic growth
tbe ' TMT concept of trailer
ieg ma
fa t be illustrated by

registered bonds sell in the Overthe-Counter Market. It is free of
the
personal property tax in

cost
for

among

TMT

or

Securities Co., Ltd

-perry, jnc

and Hudson.

1952.

ESTABLISHED

Call

This well-secured
Pennsylvania
strengthening its first mortgage issue, selling apcapital structure. Its fixed charges proximately 40 points under par,
ferrv tvne vessels ook-mto Koor.
am
ir,
have been reduced from $8,320,801
appears to offer better fUn i,r0r. ott trailer terry type vessels will,,
than aver- erating between fixed ports opin 1932 to about $4,600,000 at the
age prospects for enhancement in a few years hence, become an im¬
end of 1955 or approximately 45%.
price and good return.
portant factor in the transporta¬
Based on the present annual fixed
tion of cargo overseas,
charges of about $4,600,000 the
RALPH de PASQUALE
-.' The
reduction in the handling
net
income
available
to
meet
President, General Investing Corp.
of
freight by the "fishy-back"
these
requirements would have
j^ew York Citv
'~
5
service offered by TMT Trailer
been earned
on
an
average of
about 1.80 times in the. past 24
Members American
v Ferry affords shippers a

been

1955

*Prospectus On Request

*

first mort-

This* bond is available in

year.

37 Wall St., N. Y.

years

For cnrrent information

.'

.

not available.

to

Missouri

approximately

in a stronger position
at any time in the
company's history. The properly
is indispensable to operations of
the Lackawanna system
and
should be further strengthened
should
it prdSKS worthwhile to
merge with the Erie and the Dela¬

Delaware,
merged
& Essex and assumed
1945

of

miles.

The Morris & Essex

lowing hurricane "Diane" resulted
in a loss cff about $7,500,000.
Of

Botany Mills

F. H.

rpmpnt from p0nce.

gage bond is
today than

For the first eight months
in 1956 charges were earned about
2.23 -times,
a
good margin of

Lanolin

practically

appear to be stirring due
improved Japanese economy,

to

engaged in carrying

wbicb was
,

at

now

Rico's

pueldo

Bing-

remaining

stationary levels for three

confidence that his
concept 0f the "fishy-back" operation
was
vitally
needed by

the

with

connect

operated

age

first 3,996

years.

■

STOCKS
after

and supreme

p5fPF :f

Gas Company

Tel«. LY 62

three

The Delaware and HudSOn
operates 823 miles of main
track from Wilkes-Barre to
Rouses
Point via Albany with

2000.

1,

Morris

the

Southeastern Telephone

JAPANESE

.

Started With $500
Rath began his operation
fS ag0 with $50U in cash

Erjc

Dayton.

V2% bonds,
This issue is
well secured by a first lien. on,
the
entire
properties,: wharves,
water rights, etc., of the railroad,
In 1943 the ICC placed a valua-*~
tion of $93,235,469v before depreciation, while there are but $32,640,000 of these bonds outstanding.
Dec.

Early

.

lines

Rochester,

Lackawanna and Western

Air Control Products,

miles of railroad
City and Chicago,
extending to Scranton,
Buffalo, Cleveland and

.

offer possi- hamton and Scranton. This uniii- Rico td^outh FMrida.* This was
enhancement in price, cation would result in total mile- tbe bumbie beginning of TMT"

bilities for

due

I

;

seryice

2,226

indus- Delaware anod Hudson at

refunding mortagage 3

i

operates

The Erie

merger.

try; and Fifth it must
These

Since 1917

from full

between Jersey

yield more than other com-

must
m

A. Bailey

George

mies

rapidly expanding
age return,
connecting trackage in Canada to industrial economy.
Alter exThird, it must Montreal. The D. L. & W. operates plaining
his idea
to Fruehauf
have
a
con947 miles and physically connects ^railer Company, he was able to
sistently in- with the Erie
at Jersey City, borrow a trailer.
He then arcreasing equi- Scranton, Binghamton, Elmira and ranged for its overseas transponaty. Fourth, it Buffalo.
Both the Erie and the tiQn Qn a coastwise motor schooner

FRANCISCO

1 Specialists in

0b

paying bet-

ter than aver-

Principal Cities

Xr

Sec-

ond, it must

York 5

=

RIQHT^
HIUII I w

Be well

secured.

Teletype NY 1-40
CHICAGO

•

to

Wires

must

issue

Member

WOrth 4-2300

Private

j

1920

Broadway, New

up or
Such an

down.

Stock Exchange

American

120

market

goes

Corporation

stock

method

the h

a n

-

dling of overseas

Ralph de I'asquale

shipments

yet devised.
But, most im-

from

ship

to

from

dock

to

dock;. (4): loading
truck

for

final

^ saving^

de-

livery and all the other immediate
steps

required

in

the

movement

0f cargo overseas by conventional
method.

and

Portant, the profit potential of
Trailer vessels have other adfishy-backing is tremendous.
vantages over general cargo ships,
joint operation studies for more
°n.e of the most promising fields They can be loaded and reloaded
than a year.
To determine the - f°r investment today is in this
one WOrking day compared'
advantages and immediate savings new concept of trans-ocean ship- wRb apProximately five days for
from the coordination of existing ment of freight in a single trailer a
conventional freighter.
The
facilities.
Freight stations have directly from the shipper s plat- labor costs involved in the operabeen combined at Binghamton and form to the door of an overseas tion of a trailer vessel are said
Elmira, N. Y. The study of joint consignee on a single bill of lad- to be sharply lower representing

Railroads.

Jerry O'Mahoney

N. Q. B.

in

Southland Racing

Big Horn Powder River
United Western Minerals
Micro-Moisture Controls

operations
is
actively
under way
On Oct. 13, the Erie
began to operate its passenger
trains, with the exception of rushhour
commuter trains, into the
Morris and Essex station at Hoboken instead of into the present
Erie station at Jersey City.
The
Erie rush-hour trains will come

marine

Owens III. Glass Pfd. Int. Ctf.

CAPPER & CO.
1 Exchange PI.,

Jersey City, N. J.

HEnderson 2-8570—N.Y.s

Dlgby9-3424

Teletype JCY 119




ing . . . with only two handlings
of cargo instead of twelve.
The operation is known as

"fishy-back," a term that's rapidly

,

.

,

oniy about 3%.% of total operatln^ costs as compared with 69%
f°r the conventional freighter,

becoming as well known in the
It has been computed that
transportation industry as the trailer fprrv VP«0ic
+
•
term "Piggy-back." "Fishy-back"
Y
ln
is the carrying of road trailers service can make 46 round trips
on specially-designed ocean going
Continued on page 43

veissel«

coastwise

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
u

14-Year Performance
35

Industrial
POLDER ON

o

Stocks

REQUEST

National Quotation

Burean

Incorporated
46 Front Street

New

York 4,*

Number 5584

iP4

„

olume

...

.

The Commercial and Financial Chronicle

(1967)

Restrictive Federal Reserve
Policy too Late and too Little?

s

INDEX
Articles and News
1957 Outlook for

By FAYETTE B. SIIAW, PII.D.

unchanged

government

Temco

application, monetary economist Shaw criticizes
Federal Reserve for waiting so long and doing so little to
check money supply increase, and concludes "we have made
count rate

*

Aircraft:

—Murray
j

~

^._Cover

The

Sub

Makes the

r

—William

Value

F.

Treiber

some

suppose

of peo-

As

le.

the

policy

created

egins to take
B.

Fayette

that

the

and that

cost

and

it

will

bring

But

epression.

._

the

just

how

-

oses?

on

a

can

a

ts

impact

.

n

specific Jndivid-

upon

loanable funds.
no

other way.

It

can.

are

Yet its obviotis

being achieved.

hing that

anyone has a right to
emand and
enjoy.. The.old copyook maxims
about thrift have
one out of
the

f a

ot

peo-

all ranks and
positions in
want credit -and
feel deprived

ne

fundamental right if they do
Therefore, .it should be

get it.

he

part

of

public policy, so it
in their
eyes,
to further
extension to any who have
legitimate" business
needs, and
t
.there is
difficulty in finding
wate
lenders, then the governent
should guarantee loans or
eems

reait

ri

up

loaning agencies to supply
kck. And
they see no reason
hy credit
extension cannot be
e

"limited,
eserve

°h.

made

or

so

the

There

this

once

are

by the Federal

government" or
some

^understandings

interesting

about

famous

Law

takes

very

* If

'

Brown

Lee

has

of

care

*

credit

that.

Bell's

Proposal

10

(Letter to Editor)

Threat

as

J.F.ReilIy&Co.,Inc.

to

i

Members Salt

Lake City Stock Exch.
Spokane Stock Exchange

14

42

a

Stack, Jr., and Robert Baldwin

!_*.

_i__z_

15

1

•:

h

We^-See It

our credit illustration,.
doubling of purchasing power1
competing
for scarce ' resources
cannot bring about a doubling of

supnly of goods available. It
mayr bring some increase,, and. it

-

Business

Man's

;

I

pared to the demand. "But in

working at very nearly full

Investment

Einzig: i"Economic

Effects

Pacific Uranium
■

7

Recommendations:
of

Satellites'

:

Liberation"_li_ii_1_

which'

ex-service;

homes

with

ments

and
to

seem

terms

can,-buy

men

smaller

down

pay¬

longer maturities

make

it

on

easier for

42

Mutual
News

Funds—

About

2

•

Banks

Bankers.5______ 1

and

*

1:

/

18

Observations—A. Wilfred May.'
Our

Reporter

4

Our

Reporter's

*

-.

f

"

/-

"

*

Governments

on

.•

to buy homes. But looking beyond
the

deceptively

easy

under which one may

Continued

-

Public

V

'

.

Railroad

1

-

page

•

•

Glens Falls

40

Exchange PI..N.Y.

;

Direct Wires

v

Securities

& 1-4844
to

*

Chicago 4 Los Angeles

34

.___

Security

Philadelphia

16

Securities Now in Registration

"

36

In the

Dynamic Electrical

and

Offerings

Electronic

Fields

40

We Like
Salesman's

The Market
The

.

.

and

.

Security'!

Corner

You—By Wallace Streete.

Like

Washington

and

Bestj

LING

16

•_

2

-

;____

5

You—.___

Commcn Stock Around $3.25
contractors, with a sales increase
for 5 consecutive years and record
sales and earnings
for 1955 arfd

44

*See front page article "Funds Retrench
Broadly Into Defen¬

first 4 months of 1956.
sets

Weekly

COMMERCIAL

1

Drapers' Gardens, London,
land, c/o Edwards & Smith.

and

Copyright 1956

CHRONICLE

B.

DANA

D.

WILLIAM

Reentered

COMPANY, Publishers

2-9570

to

9576

ary

25.

as

1942,

SEIBERT,

the

post

matter

office

Every

Thursday

vertising issue)
plete statistical
records,
state

Nov.

President

of

March

city

every

issue
news,

—

news

and

Monday

Countries,

ad¬

quotation

bank

clearings,

Bank

8, 1879

Offices:

3,

111.

135

South

(Telephone

La

STate

Salle

St.,

2-0613);

S.
of

in

year.

year.

current

Current

as¬

liabilities

in

Record

made

Monthly,
(Foreign postage extra.)

of

in

New

York

additional
1.

on:

gains
Increasing

are

per¬

of electrical work in indus¬
trial construction due to
increasing

funds.

automation;

Ling

2.

Development

Electronics

Co;'s

of

vibration

testing equipment; 3. Participation
in
guided
missile research pro¬
gram;

4. Growth

television

for

of

closed

factories,

circuit

hospitals,

etc.

—

account of the
fluctuations in
exchange, remittances for for¬
eign subscriptions and
advertisements must

be

of

Send for FREE Report.

Publications

Quotation

$40.00 per year.

the rate

Other

and

per

Note—On

etc.).

Worcester
Chicago

$67.00

Other

(com¬

market

news,

New

Subscriptions in
United
States,
U.
Possessions, Territories and Members
Pan-American Union, $60.00
per year;
Dominion
of
Canada,
$63.00
Other

Prospects
predicated

f

Subscription Rates

1956

(general

and

corporation

and

8,

Eng¬

Febru¬
at

per

Thursday,

time?

centage

second-class
at

York, N. Y., under the Act

*

SEIBERT, Editor & Publisher
DANA

C.

by William B. Dana

Place, New York 7, N. Y.

REctor

HERBERT

E.

Company

Reg. U. S. Patent Office

Park

4

last financial statement.

Twice

FINANCIAL

ELECTRIC, ING,

One of the 20 top ranking electrical

sive Assets."

27

-

20

The State of Trade and Industry

buy, the obon

-

"Teletype NY 1-1825

'

...—

conditions

TELETYPE N. Y. 1-5

Chicago

Securities.

Prospective

HA 2-0270

"

41

Report
'

Utility

Singer, Bean
&Mackie, INC

21

may

them

Helicopters

10

Security

the

Doman

v

19

»r

"Liberalizing"

General Minerals

8

only

'

"

48*-.

Indications of Current Business Activity.:.

!

of

in
Yet people seem to
feel that it is all risht not only to
add the first-ten who have credit,
but also a second ten with credit,
a
third ten, and so on without

Lanolin Plus

*

capac¬

resource

result

limit.

„

.

our

increase in purchasing

demanding the
can

>

.

HE 4-3634

•

Wires toSalt Lake
City A Denver '

19

Bookshelf

From Washington Ahead of the
News—Carlisle Bargeron

present business economy, we are
an

Place

4

1-4643

*

conceivably bring about a
doubling if the supply of unem¬
ployed resource is very large com¬

example
higher prices.

Exchange

Jersey City

V

Cover

!____!

Coming Events in the Investment Field 1
Dealer-Broker

•could

Schenectady




1

the

•

•

(Editorial)

Bank and-Insurance Stocks

a

ity, and

Teletype NY

k

As

,

Applied to

power

4-4970

-

Prather

-

less than 1(1% increase in output.

the

Broadway, New York

Dlgby
,

Regular Features

This

ST., NEW YORK 4, N. Y.

HAnover 24300

•

Elliott

:

PREFERRED STOCKS

Boston

10

Diminishing
of

Members New York Stock Exchange

•

_______

technical ramifica-r

Spencer Trask & Co.

Nashville

STANCAN URANIUM

Solution (Boxed)

Marcus Nadler.ExpectsBusiness to Remain at
High~LeVel____ 33

25

Albany

a

Street Discussed by Robert F.
Seebeek; David Lynch; Nelson
Schaenen, Jr.; Peter Philip;

WILLIAM

TELEPHONE

OF DELAWARE

*

Career Opportunities in Wall

The

25 BROAD

Views

Federal Reserve

we

in

*

'

Published

have specialized

RESORT AIRLINES
14

*

Sidney

with

increment begins to decline. An
increase of 10% in input brings

•

many years

Mortgage Money Source

or

hvolved here.

For

as

Gardner___^

new

competes

-diminishing return^ this increase

work

window, and

B.

First National City Bank "Letter"
Discusses the Economy,
Earnings and Dividends,
•'___

tions, but it may- be illustrated
simply this way. You can increase
the yield" of a* field of grain by inr
creasing the fertilizer and care
given to it. But at the point of

In America
today there seems
o be a
pronounced sentiment that
he extension of
credit is some-

k in

GULF COAST

LEASEHOLDS

13

The Problem, But Hardly

without much, if t
in cost.. But if the

Returns

orking brings out lamentations
nd
charges that the results deired

At

REFINING

into

come

obtained

law

policy must have

a

als and firms because
it is inended to reduce the
total demand
or

more

power

CORPUS CHRISTI

12

|jpt- v.. ■

workmanship. Now

that ten

increase

The

are

Such

ore

already fairly.; well
employed, this> increased, demand
can result only in increased
prices.!

clamoring for1 funds
"legitimate" business pur-

or

iron

Wadleton, Jr. 11

particular

a

already present.

any,

third around the
corner, all

a

like

or

KENILIND OIL

Congested Mortgage Market

M. Evans__^

Esmond

YORK

4-6551

BARUCH9

economy "is

borrower here, another there,

nd

nickel,

credit.

source

olicy of credit restriction put a
on
lending unless it" impinges

f whom

—

NEW

WHitehall

7

and Remedies of

Pension Trust Possibilities

industry
operating at considerably "less
than full capacity, it may mean a
larger supply of the scarce. re¬

urb
n a

their

It could be

is

ifficulty of borrowing increasng, they complain loudly about
he policy and
demand that it
e changed or r"liberalized."
They
barge that it-is throttling busiess

material

purchasing

Shaw

borfind

some

in

WALL STREET,

Telephone:

D. Brooks

—T.

before, newly

ffect, and poowers

for

needed

Obsolete Securities
Dept.
09

Corporate Socialism Threatens to Eliminate
Small Firms

the market with
purchasing power
that did not exist

soon

ential

or

kind of skilled

many

roups

raw

coal

or

't has evoked

s

—G.

.

's the response

n

bidding

respective businesses.

them

of

ne

be

to

5

6

Price in the Stock
Market—Francis B.

vs.

Seeking Causes

just a
spending from ,•savers
to investors, is
likely to result in
higher prices. ; Suppose ten busi¬
resource

Obsoletes Welcomed.

4

Inequities in Analysis of Industrial
Investments—K. W. Alten

of

nessmen

Cobleigh

Shields__________„_____

,

scarce

U.

Handling the Credit Scene During
Inflationary Conditions

policy which the Federal Misunderstandings About Credit
eserve Board of Governors has
One is that all you have to do
een following
in recent months is to increase credit and that solves
n restricting credit by raising the
all problems of
keeping the econ¬
ediscount
•
omy going. But increasing credit,
ate and iiriif it is new money arid not
transfer

Team—Ira

ELECTION'S OVER!
3

Our-Gold Policy—Benjamin F.
Pitman, Jr

The

lying a
varning"
gainst inflaion presents
any intersting facets.*

AND COMPANY

.

depressions.

can cure or prevent

McKinley___-

"LlCHTfnSTEIH

What's Ahead for Business in
1957 and Next Decade

1

practically the same, mistakes as were made in the 1920's,
hut on a far larger scale." Dr. Shaw ponders relationship of
election year to restrictive steps finally taken. Denies 11 years
of prosperity spells end of business cycle, and does not agree
government

Page

Business, Housing, and Mortgage Market

Is Restrictive Federal
Reserve Policy too Late and too
Little?
—Fayette B. Shaw_____„l

requirements, and reluctant redis¬

reserve

W.

of Illinois

of record high purchases of

Noting the occurrence

bonds,

—Gordon

Undergraduate Division, University

Chicago

3

General Investing Corp.
Members

American

Stock

Exchange

80 Wall St., New York 5 • B0 9-1600

The
<4

Financial Chronicle

Commercial and

...

Thursday, November 8,

(1968)
of

tfti$ .motfeMs

to

increase.

Temco Aircraft —The
U.

IRA

A

Team

The world events

fact
cose

of the last few

accented the
that we still live on a belli¬
planet; and one aspect of the
legendary
surely

have

"white

man's

burden" seems

the

be

to

for

necessity
his

and

lethal,

armaments.

Armed

ag¬

work stoppage at Temco.

a

has
also
helped with design, and has

had

for
and

information

ficial

about

victory in

likely to he the

$17.25
The

cushion against politically
deflation and depression — as
would have under a Stevenson or Truman cu

remain

stressing,

indeed

and

including,

cost

low

its

because? of

since,

record

manufacture,

Keyserling. And the great industrial stimul
fiscal inflater to GNP and the FRB Inde

the

observed

rise

n^ntlv rising wages,

have

neither the

importance h
and expansi
programs, will all continue. These equity share stimuli would ha
been operative and effective even in the face of an
Administr
tion change.

propose to

cast our prose

the

following

stocks actually

plant closed

McCulloch, and Mr. H. L. Howard,
plus

some

300

other

promising

(selected from the force of
the closed plant) started a new
business which was incorporated,
men

under the name, Temco
Aircraft Corporation. Today, Mr.
McCulloch is President, and Mr.
in

1946,

terest

low

in

this sort, and

Opens Bond Dept./
Okla.—The

Trust

from its own

entered

a

cost jet

Ike

phase

of

aeronautic

both
wouH be
position to speed up pilot
"lame

military

duck";

and

Navy and the Air Force
in

a

of labor trouble on production a
behind cost increases from "iriflationar
wage boosts; the high level of private deb
unlikelihood of material tax relief (impossible under existence
defense-spending or substitute pump-priming); and vulnerabili
of the market by reason of the duration and extent of its precedi
rise which has resulted in the "generous" multiplication of ear
ings embodied in the present price of those deep blue "nam

'

*

Two With Mutual

training greatly, and, perhaps, to
reduce- its unit training cost by

the ten
Fund Association
$10,000 or more, if instruction
years
since, Temco has been a
(Special to The Financial Chronicle)
could eliminate Dfooeller plants
copy book example of a growth
and be confined to jets, Hence, if. -SAN
FRANCISCO,
Calif.—
company, and has so developed its
the
Temco
jet trainer fills
the Jacob E. .Allison and Floyd C.
status and its stature in the air¬
bill-(first unit should be delivered Kneelarid have been added to the
craft industry, as to provide the
to
Navy around June 1,
1957), staff of Mutual Fund Associates,
title for today's piece.
Just look
then large production orders, run¬ Incorporated,
506 Montgomery
at what Temco has accomplished
h o ."
:
ning
into
many
tens .or even Street;
Howard,

Treasurer.

In

-

.

in

single decade!

a

Net sales for Temco have

moved

majestically forward — $5,895,000
for
1947
to $78,000,000 in
1955;
with

only one year (1954), inter¬

hundreds

of

millions

of

be

.

.

-

-

Joins Central Republic

.

*

'

•

profitability for Temco mieht
gleaned from the fact that Mr.
N. Palley is now head of its

'

'• * W V V-t * A
*
*
%
K r
,
V, ' .
* '
(Special to The Financial Chronicle)

111.—r Jerome
C.
rupting this rising trend-line, and
I.
Gatto has joined the staff of Cen¬
that due
to cutbacks
after the
Engineering Department. It will tral Republic Company, 209 South
Korean
War.
Net
income
kept
be recalled that Mr. Palley was La Salle Street, members of the
pace, advancing from $371,000 for
importantly connected with- the Midwest Stock Exchange.
1947, to $3,272,000 in 1955. This
development
of
the
"Regulus"
growth
was
mainly in subcon¬
guided missile at Chance Vought,
With Curran Co.
tracting— building assemblies for
before coming to Temco.
It is,
(Special to The Financial Chronicle)
such
renowed
craft
as ■ North
accordingly, not to be presumed
American's
F-100
Super
Sabre,
SACRAMENTO, Calif.—Tom T.
that his talents as shepherd of the
Boeing's B-47, and now its B-52,
Hiraga has become associated with
Temco Research and Delevolpment
The Curran Company, 4336 Fourth
bombers; General Dynamic's B-36
team
will
be
directed
toward
and B-58, the Douglas Skylark, the
Avenue.
He was previously with
supersonic bows and arrows! A
Lockheed Electra
transport; the
Neal Kellogg.
top flight technician in missiles
Martin P5M flying boat, and the
can be a pretty important man to
fighters of McDonnell and Repub¬
Steele With Walston
any aircraft company these days.
lic.
With
remarkable
success,
(Special to The Financial Chronicle).
In the more traditional line of
Temco has been a supplier for 14
leading

military models and

commercial
main plant
as

the

transport.

one

Tern g o's

in Dallas was regarded

lowest

cost

aircraft

pro¬

Temco's
outlook

immediate
is for quite expanded out¬
efforts,

CHICAGO,

the

of assemblies for McDonnell
Aircraft (F-101 supersonic escort
put

SALINAS, Calif.—John P. Steele
and Lawrence L. Goodfriend have
become
&

associated

with

fighter) and for Boeing.

;

Money Management

Bi-Partisan

And neither does the supply and
on

the

price of credit, with

certain yield-conscious groups

bond market and

political party happe
Federal Reser
System, established by law as an independent and bi-partis
body, is now chaired by a Democrat who was first appointed
former President Truman. And no one more than Chairman Ma
to

be in

power.

The Board of Governors of the

tin would fit the

Furthermore, the

spirit to the legal letter.

Fed

of Dire
similar
their business a

policy decisions are continuingly guided by the Boards
tors of the 12 regional Reserve Banks, whose members are
selected without political

financial experience.

considerations, but for

|

<

We must further remember that the

abandonment of the e

gine of inflation which had long operated through the arbitra
pegging of Government bonds at par, occurred back in 1951 wj
adoption of the epochal Treasury-Reserve Board Accord
under the co-aegis of another Truman appointee, Secretary of t
Treasury John Snyder.
;

''

-

-

.

■

^

,

the

Moreover, the decisive Accord followed

bi-partisan Co

sub-committee
monetary polity of the Committee on the Economic Report und
the Chairmanship of Senator Paul Douglas, long regarded as
party's leading economic spokesman from the Democratic side
the aisle.
The Committee's findings and conclusions were su

gressional hearings conducted in 1949-1950 by a

marized by Senator Douglas thus:......

"We believe that the advantages of

avoiding

inflation are

contribute
to restn
credit and raise interest rates for general stabilization purpos
should be restored even if the cost should prove to be a signifies
increase in service charges on the Federal debt and a greater l

great

and

that

a

restrictive

monetary

policy

can

much to this end that freedom for the Federal Reserve

convenience for the

securities."

Treasury in the sale of

Unity

on

Foreign Trade Policy

Nor is the pending agitation to curb independent managers
by the Reserve Board a partisan matter; some prominent Repui
cans already
joining in.
On

unity.

foreign trade
A

recent

poll

policy
of

likewise

is there

all Congressional

now

considers

aspirants in ten

sta

Agreements Prog1"1
9-to-rJ; and that 96%

disclosed that the liberal Reciprocal Trade

•




its effe
(as util

ties) in the share market, depend on which

Walston

Co., Inc., Salinas National Bank

The Boe¬ Building.- Mr. Steele was formerly
during World War II..
local
manager
for- William
R.
'Today Temco not only has this ing B-52 is the new "chosen vehi¬
Staafs * &
Co.,; with which
Mr.
Dallas plant (leased from Chance cle" for toting the atom or hydro¬
Goodfriend was also associated.
I
Vought)- but a- maintenance and gen bomb on target, and production
ducer

than

the

^

of

.

dollars

might ensue.
..
..
Another big straw in the wind

other

stocks.

Mr.

-

remain und

include;—impact

These

causes

Mercantile Se¬
Clark was
formerly
President
of
Clark,
Harding & Co. of Houston.
Building.

Potentialities

potential market depressants

profits; lag of price rises

Cobb & Company,

curities

net upswing of

a

they would have under Adlai.

as

DALLAS, Texas—Warren Clark
has become associated with R. H.

production with a quite romantic
future. The "prop" plane is now a

scoring

Destructive

H H. Cobb & Co.

trainers of

Truman's ste

the Dow Jon
25% (with pric
earnings ratios also rising by 10% on the average) from Electi
Day to the outbreak of the Korean War. And it must be reme
bered that this rise occurred on top of a pre-election market a
vance.
Again consistently, although conversely, following Ike
first victory of 1952 the market after a sharp post-Election ri
fell by 15% between December, 1952 and September, 1953.
Average

Likewise will the

evinced no in¬

thus Temco (mainly
drawing boards) has

of the record ups

United States, even in the case

1948, after Wall Street's early shocks over Mr.
worn off, the market staged a broad advance,

Industrial

wish, the space,

Temco clients have

fell by 25%.

had

Warren Clark Joins

down abruptly
in
1945, and two former North
American executives, Mr. Robert

This

major

on

nor

manpower

investment logic, was manifested
victories, both actual and forecast, broug
rises in equities; and where, conversely, during the ye
the Conservatives' restoration to power under Churchi
by cold-blooded

England where Labor

Company of Oklahoma City has
the cost con¬ opened a municipal bond depart¬
searchlight upon a younger, and
trols to displace Temco in its quite ment-to deal in state, county, city
lesser known, unit in this indus¬
George H. C.
try, which, in its own quiet and specialized field of endeavor. *V-\ and school bonds.
Management has, however, felt Green, V i c e-P resident of the
efficient way, has served all of
bank, will be manager of the
these majors, and several more, it would be prudent, over time,
new
department. He will be as¬
in its role as subcontractor for as¬ to expand the prime contracting
section of the business, in areas sisted by Tom G. Hilborne, for¬
semblies
and
sub-assemblies—
non-competitive with T e m c o's merly manager of the bond de¬
Temco Aircraft Corporation.
major
customers.
In line with partment for H. I. Josey & Co.
During World War II, North
this, last July Temco secured a
American Aviation had a big divi¬
(direct) $2 million order for 14
sion in Dallas, Texas, giving em¬
light jet trainers from the Navy.
ployment to some 25,000 persons.

ever, we

entailing the overshadowing of politic

this,

of

Realization
sentiment

Liberty National Bank
Liberty National Bank and

perm

the large increases in t

population (to which so much "bullish"
attached), business managers' construction

been

of

OKLAHOMA CITY,

spen

nation's

Here in the

entry into

savings through

purchasing power and

May

Wilfred

A.

that

for

production on any new
to
great aeronautic productivity, contract, Temco is vitally needed
by its clients. Many of these now
profitability, and corporate emi¬
treat Temco as virtually a division
nence -of such leaders as Douglas,
ownership)
of
Boeing,
Lockheed, - and * North (without- stock
American Aviation.
Today, how¬ their own organizations; and they
all

have

We

billion of Defense

comprised in the $35

ing will presumably remain operative,, irr
spective of the identity of the occupant of t
White House. The large expansion of consum

swift

and

a

.and

'

aircraft.

as

thinkable"

Temco)

per

fact

Factors

power

V.ing, will under, Eisenhower-Burns-Humphr

share to Oct. 1, 196L
this bond .covers
has been
its interest requirement some ten
nounced at the appreciated
than other aircraft times over; and the conversion
Ira u. Cobieigh
conference manufacturers,
it has
probably rate is "right on the nose," as you
table, even by been because of its status as sub¬
might say—for these reasons fan¬
our
best friends, seems to sneak contractor. Because Temco worked ciers
of aircraft securities
may
back into action when there's a for others, instead of as a prime want to peruse the aforementioned
brigand on the loose, a canal to contractor^ there has developed prospectus — arid
reading, - but
be
cleared, or a dictator to be some feeling that Temco might be authentic factually.. Peace is won¬
dumped.
So rightly, or wrongly, more vulnerable to business cut¬ derful, but until it comes, aircraft,
high on the world's economic pri¬ backs or cancellation. This argu¬ and
the
companies
producing
ority list is military hardware— ment aoes not seem to hold up same, will come in handy.
,
until quite recently,
less well known or less

then what

of government welfare inte
ventionism, from social security to soil-ban

5 V4% subordinated
Oct. 1, 1971. These
at - par
and sell
around there at the moment; yet

Temco,

and

factors,

result.

Supporting
The

contracts
they have, built in them, what ap-initial design of components,
pears to be. a quite attractive con-i
airborne
systems
of - elec¬ version privilege into common at

If

external

relevant

number of prime

a

of the Republicans' landsli
failure to recapture the Co
logically ensue from t

consider what should

gress—let us first

offered-

were

tronics.

gression,
piously re¬

balloting—with its registering
the White House and their

day's

of

$5,000,000

bond market implications of Tue

the stock and

on

debentures due

merely built assemblies; it

has

most

Reflecting

New

the

on

AND THE MARKE

ELECTION RESULTS

THE

Presently there are

1,676,831 shares of Temco common

Interestingly enough, Temco

on

year

the latest,

in

been

not

each

switch from

for investors.

listed

•

By A. WILFRED MAY

production
to finance, let's look at what the
Temco picture may have in store

aircraft manufacture enters

income

his

$100 million for

•

.

..

Now to

for the jet age.

of

slice

•

York Stock
Exchange, currently selling around
overhaul
plant (also leased) in
17 with an indicated dividend of
Greenville, Texas, and a smaller
75c and
per
share earnings this
owned plant at
Garland, Texas.
year in the order of $2.30. (Recent
Aircraft assembly requires a lot of
practice has been to
pay out
space and manpower.
Temco has
35/40% of net.) In addition to this
both—over 1,900,000 square feet of
common, there was offered by pro¬
plant space, and almost 10,000 em¬
spectus under date of Oct. 23,-1956
ployees.' Labor
relations have
(the sole source of all current of¬
been excellent and there has never

spending a

good

1957.

of

distinguished subcontractor in

above

sales

net

Financial Independence

Security and

prime contracting

weeks

KC-135

COBLEIGH

Author
"How to Gain

also re¬

and Temco also
assembly for the
tanker. This all points to

quires tankers
produces tne

Sub Makes the
By

expected sharply

This bomber

was

favored by a margin of more than

candidates also believe.it is desirable for the

Federal

Governm*

Number 5584

184

lume

The Commercial and Financial

...

sort of assistance to industries facing

pxtend some

ompetiti

-

*

♦;

«

*

Chronicle

(1969)

stiff foreign

*

.

round
of
wage
increases — in
which event, profit
margins would
be -adversely
affected., with., busi¬

Whafs Ahead for Bus'ness

'"f'v-fti..

I believe, negatively, that Ike's victory should have no
the securities markets; -and, furthermore, affirmatively,
hat the course of the international political situation, particularly
h! continuing degree of tension with its stimulus to the $35 billion
Hence

efense-speilding prop, should be vitally important.^;.;**.i-, ?■;
And it seems likely that these logical expectations will be
nlfilled in practice, at least over the shorter term—witness the
ertwined duet of the stock and news tickers and the accompany"g commentary since the outbreak of the Soviet Satellite and
iddle East conflagrations.

Prominent
•

incomes

Electric Output

Carloadings

State of Trade

competition interludes, the next
years' outlook is for record breaking expansion.

Cemmodity Price Index
Food £rice

Index

Auto Production

and Industry

,

held at a high point and

{last week

week

•

employment front, it

On the

on

is learned

abor.

.

attributed

was

to

onstruction and lumbering in

Wednesday

claims

new

department

'obless pay

also

reported

the

for

''

■"

'

number

..

In

our

•

the

The

total

he number of auto
the

workers laid

off

since

the

first

of

the

19,000 while 1,000

onth

jobs

to

set

a

of

has

year

mid-October .record

tates Department of Commerce

of

edged

up

66,174,000,

100,000
the

this

United

«-oil

checked

in

easonal, the agency added, with

hes such as
Ule

fell

trade

and

harvesting ended

vomer's out of

jobs, of 2.8%'

past three years

and

with

anymonth during

3.2%

a

rate

in

October

have shown

stee* industry this

no

if

ek and

pressure for

iJ!m *ng to

veekly states.

m°unt,
■

in

delivery and position on steel order books
"The Iron Age," National metalworking
'
*

little

0111

already reacted violently with prices
k/'j *n every important consuming area as steel producers
•? to rebuild. thqir stocks,, "The Iron Age" steel, scrap

Polite price
zoomed.to an

all-time

high.

year

tructi
nee

product was; tight

J°^ed sheets

were.in the

same

condition.

a

of

year

of

period

v,ar program will be singled

i

J *°r more steel by auto producers,
J,.ncl~the-scenes pressure for re-imposition of controls on
Plate row*Pg* Controls advocates have set their sights chiefly
vouid „•
and structurals. A go-ahead on the tanker program.
dmink!r.e+more ammunition. But offsetting this are the
Beh

+

teel

•Nation's

k

objections

to

controls

;




v.

plus

past

Continued

experience
on

to.

page,34

requirements
inflation.
As a re¬

over-all

liquidity

posi-

1956

have

pro-

neither

as

bit to consolidate

a

1957. Tight
indeed, a limiting factor
outlook, and it will be well
for us
to
recognize that money
js tight not because of any action
m

re-

the

for-

be

Reserve

has

because the

simply

taken,'

credit

re-"

available

not

are

consumers,

than

available

are

To

produced.

flate>

credit

tp

but

buy

can

i.e.,
to

be

in-

to

such

meet

be

to

than

create,

would

mands

de-

expose

to the risks of wild

our economy

economic

and

commodities

more

debilitating inflation or to a boom
bust cycle-neither of which:

and

growth-is to be tolerated in

an advanced;

y$ btL' e?'acf\£aYt economy sucn as ours.
not automatic, but must

earned

by

hard

3Pe'"ai?n(> fa"f
And caieful

work,

much

So

the

for

thf, yfar 195h '
outlook—say for

vill

(

1966 Is Prospect

•

hard

obser-eis

outlook

for

the next decade

^he^^35 ^ expansion. foAr reford break'
whole~is
of the recently expressed confi- mg
,A glorious new
dence that we can delete the word
"tough times" from our economic

America is
0f

our

on

the drawing boards

builders, in the pilot plant

vocabu1fry
though we do stage in the laboratories of our
db"d? 'bat tb"e's "° ?,Pbr°Pvr'± research scientists and in the solid
near-term
use
for the
word? planning of our aggressive business

in-

leaders. The surge in

aim0st

certain

many, many years

pop

ilation is

continue

to

for

and starting in

ea5.ly sixties the rate of family

formation will spurt upward. Our
$6 billion per annum outlays for1

will be a good one, the level of
business at the end of the year

new series

may
well be moderately below
that at the beginning of the year

ways

1

of

election

an

~

for such

has

1956
—

it

rolling

a

not

been

(D K»

has been a
internal
re-

to. which

con-

1957 is

and

will produce a whole
of huge new industries

long list of fabulous new
of producing goods at lower

a

and lower real cost so that
can he wideqed
>auw 'consumption and production increased

correspondingly

^uecnn.e'

"

serious

°
factor

Baas»n

economy

our

research

kets

i-

a

as seems

t

fairly quiet

one in

labor-

management relations with relatively few strike stoppages of
production, supply-demand relationships

price

and

,4-^,

The^ road ahehd will be.a bumpy

,

likely, the year 1

expectation?.

t

will be interludes

there

and

one

df recession and of merciless com-r

But the prospect is that

petition.

by 1966 our Gross National Prod-uct will be reaching for $600 bilin

iion

dollars

1956

would

which

-

in-the fact

that

close to $6

billion per annum for
development, in the

we

are

spending.-

While money is not tight- wildest optimists,
enough to cause a depression, it
(2)

•

some

R.

is

carefully drawn plans of business
to carry forward very substantial
programs' of plant expansion and
improvement, ' in -our road and
school building programs and in
,

the further tfise
address

the

by

in
Mr.

consumer

SM^ids

in-

before

Na'HHiai 'T^xj! and D^e. Manufacturers

LsLciation*
195o.
-

.

Hartford1

•

•

Co11p"'
.

Nov* 2>
^

_

_

research and

tight eoQUgh to suggest that
marginal, activities in the
industries which lean heavily on
new credit extension may have to
be curtailed a bit.
.
(3) Late in the year there will
be
a
fairly substantial increase
.

capacity in many

productive
industries}
difficult
j

to

which
pass
■-

-

-

may

along
>

make -it

the1
1

next
:

'

t

government and ^
business to employ more workers

an. easy

and

rather

sources

forever.
The conviction
by some of our busibankers

Federal

biR

will probably hear less confidence
expressed that rising population
and the technological revolution
°n

fi°

fi¬

could

jn the

cession,, but of rolling competition. As the year wears on, somesubtle changes in economic psvchology could easily develop. We

street
now

our

This

resources,
resources.

money is,

period

a

of rolling

nor

prog¬
tailored to

be

easily happen late in

year seem likely tc
be moderate rather than spectacular, with the year going down in

records,,

to

financial and savings capabili¬
ties and when we will have to

duction next

our

is

our

Pause

of rolling boom

it.

What appears to be in the cards
is tbat while the year as a whole

wild

be ready for
boom

will

ress

Produc*

whole, the gains in

circumstanees

a,most "Stable that there will
be periods when our rate of

nancial
On the

>»:*»

But

Possible Pause
suph

might be changed sufficiently to mean that we would attain new1
appraising the outlook for 1957 is cause a. reduction in inventories standards of economic well being
the economic momentum inherent in. some industries.
not ever dreamed of by even our

Cold-rolled

out for more speed and tne

the

.

capital

wage

the backlogs
solid—involving

adjustment
Another

im-

*„«-

siderable weight must be given in

...

hininp

National

riser

of

with

i,

now

for

boom

fluff

no

recession

and growing tighter

extensively by automotive, are tightening up- fast
Fn
nin in!° a reat pinch in the months ahead, it states.
M a'h
S kehiucl the growing steel crisis include the probability
hefi'oianttanker program will be expedited; the chance that

for

average

and of growing international There are several reasons
have
been
absorbed inexpectation:;

might

w'i]]Use

nd

has

Had the boom Of 1955 contiriued

rf gyp^an ^ar and the revolt irr-Eastern Europe. Plate,
tT
,and hot-rolled bar inventories were badly out of bal-

heei?

or

ratio

no

thrbughout^ 1956,'•

S-?n^i^rp. apeijforgetting about,.the' .conservative,, in-,
helped
lcy
prevailed before Israel attacked Egypt. Not
ng iqv
,tbes®-'4s automotive.: The whole pattern of steel buyomp cCfna?ging to a ^ster tempo.'
If international tensions worsen,
isserts
yers will be trampled in-the rush, this trade weekly
steel

of

heen

maio?

a

have

the

be

t

entm

every

has

surplus

been

to

funds

under such circumstances, it is

an-

tensioris:

'.'^V

.

pressures

communitv

The uncertainties

,

mstwT scrap market has
pro

has

reduction-

itseTTJ

orders,

new

appearing

the

produc-

year.

has

There

week the Midle East incident is forcanother look at their inventories this

lJLlyers to take

above

high

"crisis" or "depression." Businesr
volume may indeed be "good" but
"ales is beheved to business conditions4 are probably
little, if any, advance g°in® to be Iess "easy' for a whlIu

to

during the

all-time

an

nessmen>

budget

value

ventories

to

Unrier

observers that the future is to be

inventories

dollar

working

at

sales

nolitical

accommodated

in

of

aconomic system as a whole may

This

have

year-with the result

morfest

a

banking sys¬
on to Supply

our

being called

he a a very low level.

during

1949.

and

tax

financial

While

lowasin

a

vields

rate, the proportion of all civilian
as

be

level

to

orices

Gnvernm^nf

Federal

ne

that

amounts

sult,

1957

out

average

the

of

1947

itself

and

advance in interest rates and bond

in many areas.
was

levels

brought

from

the

the

are

due

production

Tke in^gdcultura! bdtva

and

election

show

slight cutback in agricul-

a

adjusted

world

Federal

off

^

September was mostly
increase in non-farm activ-

some

has

boom

threaten

-

,.

nroeram

the

desnite

lhat

from

compares

year ago.

vp

September, 66,-

an

teaching and

^ctober unemployment

vhMr
e

The

held

population has swelled by 4,300,000 in

employment

145%

tilth conTumntfon in'° alignmei,t growth^

according to the department's Census Bureau

advance

today

a

to

as

income

at1

The

The

i956

in

on.

inventories

the latest job estimate was some 600,000 under
66,800,000 high last August, when many students and other

'shmates.

favorable

had

bank

abroad

However,

The October
working
he past four
years,

years
of
price earnings

intensity

later

spending lavishly to
improve capacity.

and

means

in

will
probably be close to $42?
billion, up 4% from this year's

whole

a

variety of influences including the

onths.

Jn

as

after

and

more

lower

to

force.

con-

~

civilian

labor

out

Agriculture

reported.

emporary workers were in the
171,000 persons held jobs.

year

nmhshk
probable Lot
total.

market

have

bust

a

employment level was more than
10,000' higher than a year earlier and continues an uninterupied, 18-month trend of-employment records for the
particular

he

of

intensity

such

P,r°bably

And, the Gross

steadfastly refused to use
inflationary techniques in order
to keep money4 artificially easy,
If they had done so, we
probably

.would

all

bor¬

the view

support

industrial

period

2%
Shields

-have,
.

factors

of

would

The Federal Reserve authorities

time, unemployment eased to 1,909,000, the low¬
since
November, 1953 and 89,000 less than in September.
The mid-October

the

than they were at the end of 1955.

At the same

's!

about

infpn^itv

are

is

Proving and expanding productive
capacity, Tor increasing consump.10n and .*or meeting the increases

example, the Federal Reserve

wiU

ma¬

Yields

ratios

World

the

index

leveled

boom.

of

holding jobs

persons

For

reces¬

stock

and

increase

social

Business

Western

tems

Highs in

expensive

,

o

textiles-

The

left the labor market.

or

,v

have
already
experienced
recessions

represents accumulative weekly reports and does not take into
ccount that many of the workers laid off since
Jan. 1 may have
number

rowing

to four years.

New

on

of

programs.

This

vast

community facilities

pay

the

over

10

amounts each

one

to

security

by industry to raise wages

by substantial

in

invest

and

!*on ^fs been reduced. Banks are
year
1957 as a
whole 1?.a"?.d "PI other investment mwill probably be a
period of ex- stltutions have lengthened their
panded incomes and higher pro- Portfolios; and many; corporations.
auction with quite a lot of new ?nd
1"d!v.lduaLs have assumed,
highs in our economic statistics: heavy d.ebts' ,The liquidity of our

.

.

si'riprnhlp
siderable

re

The

of

These

Murray

However, the department said the cumulative figure of 190,000
snot a measure of
unemployment in the auto industry as the fig-

ound other

ments

that

industries

and

laid off.

were

to

assured
by
a
new
contractual commit-

now

system

Views

equipment

has

seven

ecalls totaled

comes

for the next

—automobiles,
housing, farm

on

major auto-producing states and not yet recalled by
he industry was reported at 109,000 for the week ended Oct.
27,
decline of 18,000 from the
previous week. State reports Showed,

n

.

Several

drawing jobless pay was due primarily
automobile; plants, the department added,

in

a

economy

sion.

like

workers

n a

against

The decline in workers

recalls

by

far

read-

w kr.i i

steadily for six weeks and now is about 200,000 below
ariy September levels, the report added. A year earlier, insured
neirployment totaled 797,600.
further

marked

strengthen ed

eclined

o

cur-

^eco¬

jor

of

available.

are

for
ior

weight

whichmay

rolls declined 7,900 to 867,000 during the week ended

20, the latest on which figures

ct.

of

nomic

hampered
and to layoffs in food

areas,

outlook
ouuook
that

fact that the

been

ternal

which

leather and textile industries.
ago. new claims totaled 176,000.

year

a

The

some

/;

weather,

the

justments

apparel,

rocessing,
veek

bad

the
me

essential

has

year

series

_'•<

that

:

■

rise

is

World

spending more than their in¬
Many
governments
are
running—directly or indirectly—
huge deficits to support prices,

reaching in¬

^employment pay increased by 10,300 to 182,000 in the week
nded Oct. 27, according to the United States Department of
The

it

rent

moderately above the

was

year ago.

a

appraising
apgi-aismg

be given to

J
ike

In
m

V1957,

Business Failures

Total industrial production in the period ended

and merciless

Western

comes.

and

recession

Retail Trade

whole

a

are

moderately higher production, characterized by
nor depression but by rolling competition
and good business volume;
(2) end of the year business level
may be below that of the beginning; and (3) that even with

S^eel Production

;

New York City

business

neither rolling boom
-

The

on

spending and investing
spree
and trying desperately to
live beyond its means. Consumers

analyst. appraises numerous
factors
shaping 1957 and the long range economic outlook and con¬
cludes: (1) next year will be a
good one, marked by expanded

•

•

■

(4)
is

By MURRAY SHIELDS*
Senior Partner, Mackay-Shields
Associates,

.

n

1

ness disposed to take a
somewhat
jaundiced view of the outlook.

In 1957 and Next Decade

ffpct on

5

„

J.

Robert J

.

securities
.

1C-

CH

R

0

Mr

1

n

oTandt, Up?ns
Brandt is engaging in
street

^ - investment

-

York-

New

formerly inbusiness on
the
wag

£0agf having been
with

office.?

from

business
a

Brar)dt

associated

Pacific Coast Securities

Co.j

paine, Webber, Jackson & Curtis,"'
and. Hill Richards &
.

.

"*■

"

Co.;
.

.3,

_

-

;
:

P
J.

X

and Financial Chronicle..

The Commercial
6

Thursday, November 8, 195

Our Gold

By BENJAMIN F. PITMAN, JR.*
President, Pitman. & Company, San Antonio

standard at

return to gold

{

for

use

gold, enlisting

a

realistic price for gold, greater

kept

will
international

ality. Declares: foreigners assume that sooner or later we

.

mark up

gold; world faces

disturbance would

gold to
to gold

cause

lated

gold shortage;

an

foreigners to redeem their

cause

short-term dollar claims;

|

a

and

excess

than

more

building

a

to

century ago

San

thpv

issue of "Fort¬

night," points
out that the
gold producers
union

her

Yet today,

,

•

many

econo¬

mists
or

'

ignore

belittle the

vital

ih

the

account

estimated

dollar

$17,dollar
U. S.

cir¬

notes

be

.

fieai. t\

Pitman, Jt.

a

for

redemption, as
Chicago economist, Mel-

noted

1hat

out the world.

be

can

stockpile

virtuallv

of

How esse
far
in

finance

and

row

is

smart to bor-

now

Hence

orate.

and pay later,

it

buy

jar

a

stock.

of

Na^lly on toreignere
gold iliHri

Tne extravagant give- we do to this countr^ If one or
-program
of
the
United, two large foreign holdeis of de-

war;;

away

States with
riot

and

The

to this:

down

buying

tributed 2,000 copies of an article
which
appeared
in "Sootlight,"
entitled "Good As a Dollar—How
Good

is

It?"

sophisticated have been borrowand the benighted thrifty have
betrayed.

been

and

th

anni]a1

rental

a

Sndf wnkh

.

,

turers Association—Proceedin
of

tion,
York

with

obtained

gold.

believe that our commodity,
rtockpUe, huge as it is, makes us
self-sutlicient in raw materials,
necessary to prosecute a war? We
import 73 kinds of staples, mostly
ntrategic materials, from 53 coimtries. Iron ore, for example. How
many years' supply do we have
stockpiled? It is clearly ridiculous
oven to consider such an undertaking. In case of war, Venezuela,
Canada, and Brazil, friendly as.
they may be, are likely to insist;
person

War

Why?

to otfset

eral

liabilities? The Fed-

our

Government

foreign

has

countries

claims

worth

on

almost

t

^

+

about

word

ternal forces whkh

J

we

creditors by all statistical

are

standards.

The

trouble

is

that

barely $3 billion out of that huge
volume of claims is of short-term

nature; the rest consists of longterm loans to governments and
direct investments of American

inflation

and

>•

.

monthly letter of

-

-r,

i

may

«-^

the

of

atfect fte

are.
Our huge gold reserve is ours
major war cannot bename only; for
practical purfinanced by taxes which are so,
p0ses it is mortgaged to others,
high already that a substantial in- They could ask for it at
any time,
crease
of tax rates would yield, under what conditions
leaving

can

trust

versity

is lending he

satisfied with

.

.

worth

he will de¬

.

mand exorbitant rates

.

.

.

ally.

ceive

."

.

uct

widespread distrust of the dol-

-standard

gold?

at

realistic

price

and until

a

Unless

the

„ils„T,a:^al*?A

at

an

South

Africa

eold

Consulting Editor

a

f;280

seen—

SyofSe-

flM to?
dollar

alreadv

is

hanging

over

in the banking system—
by monetizing the debt, and insidiously diluting the currency..
other

price

of

wnrris

cold in

invariflhlv

the

the free^ markets

in terms ot the currencies
up in terms ot tne eurreneies

f'oes
Loes no

0

^

rates

will

follow

in

wake.
Will VVe Redeem?

the*

t ificates

terest

o

gency

.when a nationa1 debt of

billion

capital market. The many billions
required to finance 0 war can only
be obtained by placing the cer-

Tri

j

,

;

..

f) J1?^

declared.

Precedent,
In

effect,

'
-

_

/:

ties would be unwilling to redeem
^ gold all the potential demands
W?1S war or other disturbances
actuate- An epibargo, not
^

would

our,

its

The Fliskt of .the Gold Producers'

.

.

-C^

s|t°uld like to step out

W'

sition

of

the

gold

miners.

Stock Exchange are an
indication, the "grim reaper" now
American

••

closing in
too

As

gold - miners will be
the South Africans,

international gold standard would callous disregard which our govthereby he abandoned. Such a, ernment has shown for this perse-'
dc facto devaluation is not




the

realm

of

C. $2.50

American

on

one

a°~L±1

observer

nuts

.

it

jg

^

higher

orice

around

(unbound),

cotne?? Prfbabirnol bu? Utoight
can

,

Wonder
American Paper and Pulp n

Stock Exchange

Official Year Boo

1956—In two

Skinner

&

Morgan Adds to Staff
(pnecial to T"E Financial C'5ronici.f) '

•LOS. ANGELES, .Calif j—Rob¬
ert T. Cosgrove, John Di Devine,
F.

Roberts, Vincent P.
Swanson, and John P. Willougl by
are with Morgan & Co., 634 South
Spring Street members of the Los
Angeles Stock Exchange,

SHe'di Opens Branch
WHITE PLAINS, N. Y.-*SH?lds
office

65 Co

branch

rt f t^ct under the

cirection of Stuart Eaker.

(paper).

N. Y.

New York 17,

•

42nd Stree

East

122

elation;.

honestly

&r Company has opened a

Inst

N. Y. (paper).

volumes—Thorn
Ill Broadwa

Co.,

N. Y.

(cloth) $3

Tax Documents from

Tbeadelph

New York "4,

William

Car

.

47th Street, Ne

Paper-An Everyday

Hu"\my W8meat< 14 will come.
I

Railway

19 East

York 17,

without warning,

jn conclusion,

tute,

the

The

beyond vering and essential element in
possibility. Should our economy is beyond compreDuring the last World War, such a
cataclysmic financial up- hension. The day will come when
fjold sold as high as $100.00 an heaval come to
pass, the dollar a myopic government will franounce.
Naturally, suppliers are price of gold would skyrocket to tically, implore a
sorely crippled
likely to demand payment in the a
point reflecting its intrinsic or gold industry to step up producone and omy
enduring standard of
replacement value, which may be tion.
value — gold. We learned that anywhere
The former aristocrats of the
between^ $60.00
ar.d
when we had to pay in gold coins $100.00 an ounce,
mining world are virtually the
only class of American industry
in North Africa, in Greece, in the
High Interest Rates Partly, Attrib¬
who have been overlooked by the
Middle and the Far East in order
utable to Inadequate Gold
platform writers of both Parties."
Reserves
Our political influence is lower
/ * An address by Mr. Pitman before the
Speaking of inflation — risirg than the proverbial snake's belly,
/jroerican Mining Congress, Los Angeles,
Lalif.
interest rates are one of its symp- If we are to survive, we must
of any of the belligerents.

Y.

D.

London

of my role as an investment state my conviction that anyone
banker, put on my work 1 ng with courage to start mining gold,
clothes as president of a gold- antj those who are now operating,
producing company, and submit a will be well rewarded—and perbe; brief observation on the tragic po- haps sooner than you think.

hybrid

(fabrikoid).

N.

nro-

'--breathing down the neck of the Orderly Buying of Freight Cars

accelerated

hieher

savers

McGra

—

Inc., J
New York 3

Company,

Book

West 42nd Street,

^u3t"t^uiA~wfT do" if"the* e mer- J16111! anci ine sRfcl?r„01 m?n 1P~ America is exporting its inf'atmn.

lionds to the

for Business—Tec

Money

Hill

uranium^ which amounts to

Center, Kellogg Ce

niques of Long-Term Corpora
Financing — George J. Lenes
Gillette K. Martin and Roger
Gilmartin — Merlyn S. Pitzel

rude jolt,

subsidy.

for.
gold

financial ship, it will continue to

drift,. perhaps

New

Despite the blessing of by-prod-

Could the statement that there
is

Labor and Industri

-—

Labor, 341 Ninth Avenue, R
1025, New York 1, N. Y. 15 cent

around $900 million annu¬
The complacency of the au¬

a

co

Michigan State Uni

portunities Forum in Your Co
munity-—U. S. Department

thorities fn this respect might re-

de-

or

nude the market of loan funds by

fleeing fo equities.

a -con-

Proceedin

relations

Conduct an Earning 0

How to

tinued heavy gold output in South
Africa
for
a
world
urodun+mn

be

moderate return.

a

loses faith

If he

of the

will

a n

ter, Michigan State Universit:
East Lansing, Mich. $1.

±

to be relying on

agers seem

future value

the

he

money

returns" unaer wnai conaiuons
ieavin^ ra^e down the stream of debasei?wer 5ar!r til!n_higJhir„r!t"1r"S: war aside-could that occur? And" <ment, and the specter of high in)t cannot be financed by selling
rathpr than

t

o

National City Bank puts gold price. Sooner or later, the
«■ this way,
. . The future of- world m general, and The U. .S.
wterest rates depends morestban. in: particular, will be faced with
anfthln8 0nJ fonfidence. insaver gold shortage Our Monev Manthe
value of the dollar
If the

—

lowpr

•

—

industrial

an

Relations

+

it

b

(cloth) $3.95.

ference at

ioices wmcn may anect tne

+

u s

Company, Inc., 23

Grievance Process

later the U. S. must mark u.p the

+

i

...

$16 billion; American private investments in foreign lands
are
valued at $29 billion. On balance,

A

twins.

-n.

H

On Gold

mentioned

The May-1956

&

Rinehart
N. Y.

-

This is

My

Walter White—Poppy Cannon

The Effect of External Forces

r

cynical thought, but a statement;
But, do we not own
assets
of fact. Would the most gullible abroad which we could liquidate

50 East 41st Street, Ne
17, N. Y. $7.50.

Madison Avenue, New York 1

posits in Ammcan banks or of
Interest S:
any
U. S. Treasury Dills, oegm to £f
fr• n t uncommon in'
previously mentioned, any
withdraw by taking
out
the
'?°leu^in^nhe^. International disturbance could,
equivalent in gold—a run of in- the pace of inflation is a -rapid and probably would, cause a run
™an?_parts,
on oui.
g0;d reserves. Abroad, it
calculable dimensions might get one*
■"
is widely assumed that sooner or
not under way.

«3

Chemical Sp

—

Knight

(jentie

in
,,

the
world at large almost anything
required 10 fight a war can be
feel pertain, however, that in

meeting

year

nv—

in the monev's

Association's 42nd mid

the

cialties Manufacturing Associ

~aaada> " ^ mandatory that the

will at least equai

eros?ion

shackles
,

Specialties Manufac

Chemical

Palyi,
read it

U. S. Government do likewise.

liis

for

all

of

freed

is likely to become toughel. and.
rpnupst

Melchior

by

Associatio

Building, Washingto
5, D. C. (paper) $1 per copy i
quantity lots; single copies fre
on request.
Southern

such

I urge that everyone
and give it widespread publicity.
(4) That the constitutionality of
the Gold Act of 1934 again be
tested.
Since private ownership
of the yellow metal has recently

*

boils

all

It

strings attached is
dependable allies. I

no

illustrate how

Coal

National

could be effective, I dis-

move

Trends 1956

Coal

Bituminous

return to the gold

a

To

standard.

(4) The tendency of corporate*
managements to obtain funds,
through the issuance of debt se-"
curities, rather than, dilute equi- ties through the sale of common

been

u

through

Inc., Cambridge, Mass. (paper

T-7

intensive campaign
integrity of the dol-

an

restore the

ers,

rely more implicitly

Birth of Dyeing—Arthur D. Littl

—•

,

unhanged.

Henry D. Lytton, 1326 Twenty
Seventh Street, N. W., Washing
ton 7, D. C. $ /.50 (unbound).

develop two bows for our

•

critical

\/Ould the $21,8 billion §o

mTa

(3) EnUst some of the rich
foundations dedicated to the pres-

the dollar continues to deten-

as

in

mand

arrow

quoted on the Big Board. Some of
As more and more people conand that could be
liquidated and elude that inflation is inevitable,
strategic metals arild materials is turned into gold, too. The financial the demand for loans will intengrowing to fantastic proportions, history of the world is replete gify.
Yet
our
gold reserve remains with the tragic consequences of
On the other hand, the saver
Our

metal

Forecasting Nickel De
the United States

Basis for

5*; *•2^.n^f^nf4J^;^.ervaU^ of American institutions
will increase to

it still leaves out the $6.6 billion
long-term assets,

.foreign-owned

Defense

today

widely^accepted belief
value -of
real estate

thp

85% of which consist of securities

r
#

Gold Ranks Foremost in National

need

borrowed

stocks, and "things

through- chior Palyi, has pointed out. And

systems

monetary

presented

:!ndustry '(^iTveltira

P^d o«later wito cheaper^doilars.(3) The

culating abroad which could also

endur¬

ail

(2)

000,000,000 of short-term
claims, according to the
Department of Commerce; at that,
this figure may not even take into

role

played by the
yellow metal
ing

ah

Association, Rev
Building, Detroit 2, Mic
(paper).

Center

ban the gold miners.) The gold

Fair

and

ufacturers

,

..^SmlSSimid we now sorely
Tbe growing conviction tlrnt,

money

conclusion

held

eigners

Npw

nf tbp

edition—Automobile Man

36th

coa* industry. The government 's
sponsoring a costly res^ ch proSram for agriculture. (The farme£s>
course, have mcme vo cs

basic reasons. The

Deals, have discouraged savings
and.encouraged borrowip|..,

is, quite
.simple. At the end of 1955, for¬

time of need."

Automobile Facts and Figures
tantly to the lusty revival oi the

should

'we

think

I

more

iprt/vtv^prnniri

but
such
a
calamity
is practically
certain to happen in an all-out
war and might be touched off by
a
shooting fray. The reasoning
this

Street, New York 19, N. Y. $15

t,

the Fort Knox nest

on

Appraisal and Valuation Manual
American Society of Appraiser
Manual Division, 119 West 57t

"7"'"

in

existed

absurdly-low interest rates, inby
dubious financial

egg could occur at any time,

-behind

the

in

"run"

auto

duced
_

worth emphasizing:

(1) Encourage the use of gold,
preferably coins; also in jewelry.
(2) Initiate a large-scale re-

and'-other search program to develop indus-

been

have

mav

past?

Our Mortgaged Gold
A
•y

housing,

annliances

search for

armed

our

^

ginia E. Foote,
ip the August

"saved

services

nave

Yet,
haven't, similar
human desires, suppressed: though

was

extent all of California. Vir-

some

the

get

literally forces needed,
Francisco, and to

industry

gold

that

Bookshelf

r consuuouve
auggcaiioue,
been made, four ideas

many

for
de¬

seem

better

Man's

chest.

vive, we must whip together an
organization for the common good.
What can it accomplish?
Among

luxuries.

with purchasing power erosion; and that both
parties overlook the gold miner's plight.

Little

and

mobiles,

Business

and it is hard to collet a
Nevertheless, to sur¬

ished,
war

for funds?

more

to $60-$100. Believes tight money is re¬
reserves and that lenders want higher interest

go up

external

on

analyze 'the -bootstrap
Our industry is impover¬

us

route.

(1) One reason is the insistence
of
an
increasing population on

rates to cape

the

with the demand
this formidable

Why

mand
(

U. S. gold embargo would

a

Let'

money

up

loans,

rely

or

forces.

has something to
do with inadequate gold reserves.
Let's
explore
this
relatipnship.
The flow or iresn savings nas not

standard campaign, and test of 1934 Gold Act's constitution-

j '

Super-Boom.

Tight

advocates

rich foundation to finance gold

a

bootstraps

Despite the
broad
powers
of
the Federal
Reserve, the. cost of borrowing is
likely to stay high. Short of a
depression, it may go higher.
the

of

Policy

Gold mine President and investment banker Pitman

either pull ourselves up by our

continuation

threatening a

toms,

I

.

(1970)

I

;

(Papyri of the
"'A.

Second Centu

D.)—Edited with;

tion and notes by
Clinton Walker

Inttodu

John Day

Keyes—Colu
New Yo

bia University Press,

^27, N. Y. $10.
Understanding the New
Stock

Yor

Exchange—Guide to wo

.and functions of
New York Stock

York, N.

Y.

the Exchange

Exchange, Ne

(paper).

Number 5584

184

olume

...

The Commercial and Financial

Chronicle

(1971)
with less credit, and to
encourage
borrowers and depositors to gen¬
erate more savings out of current

Handling the Credit Scene
It

v

■

.

#1

ll.l

income.

At

the

time,

same

anced

and

business
until

such

financed

and

by increased
savings

individual

the

added" production
available.

comes

be¬

By WILLIAM F. TREIBER*

large
for

stand. rUsing school bonds

can

Treiber maintains, ;use of cheap

Mr.

by

costs

some

millions would risk

as

so

t the

is operating at a very high
vel. The demands for goods and

my

have

ervices

pressing
capacity,

een

ur

ave

tended

d

of

rost

d

an

might rise by many

present
an

tinue to
«,

ut.

r.

i

i

concerns

2 It
one

diverted from their in¬

use.

Capital

do

so

would

loans

will

con¬

carefully, to

is

borrowers

estimated

would

$2V2

billion

the

cost
per

get

along

consumer

American

stand.

will

If

we

finance,
overdose

an

sickness.

of

There

itations

savings
experience

desired
other
surecan

are

of

cement,

even

all. the

produce

materials
of

physical lim¬

ability

to

steel,

takes

medicine—more

the

on-

our'ecoriomy

ir.

glass
the

under

dangerous wage price spiral, but
also, in the short run, the capital
expenditures
put
more
income
before the

price

the

more

turning

consumers

to

people

tal

long
productive plants

out

expenditures

consumers

goods

more

buy.
need

for

The capi¬
to

be

other

important.

Sound fiscal

important; this includes
Government takes in

policy is
what

the

and

bow it
takes it in, and what the Govern¬
ment

spends

and

how

it

spends

it.

Fortunately the Federal Gov¬
ernment has been having a budg¬
etary cash surplus last
this

and

year

year.

Inflation

unless

the
it.

come

decisions

of

part
and

overcome

are

all

restraint

balled

people

producers

leaders

be

cannot

people want

Self

and

and

great demand. Not only
circumstances foster a

inflationary con¬
inflationary
things also are

of potential

or

pressures,

—

to

—

over¬

wise

and

for

the

on

consumers

farmers,

tion

—

help

can

reduce

expand
goods

the

and

another

ing

their

creeping
ciates
the

the

purchasing
It

is

not

short-term

from

only two

unit of production.
Although credit policy cannot
the job alone, it can support
other measures and, in turn, be
supported by other measures in
the important effort of seeking t*>

per

do

stabilize the economy—to stabilize
the purchasing power of wages,

profits, of savings.
You men engaged in trust bad¬
ness
are
devoting your energies
to the preservation of the valm
of savings. In this endeavor, there
be

can

nothing

chasing

power

volume

services

of

and

(Special to The Financial Chronicle)

LOS

ANGELES, Calif—Roy C.

Morris
with

Jr.

J.

a von

greater

wages

A.

has

become

orporate

and

as

Sixth Street.

Daniel Weston Adds
BEVERLY
R.
D.

HILLS, Calif.—Den-

Wallace
Weston

'

municipal

$45,000,000

■

:

.

'.

.

•

*

•

•

'

•

t'

bond
■

ssuerSjcan testify. Some disapointed
long-term borrowers have

herefore turned to the
banking
ystem for credit to finance their
3pital

here

expansion

iS

53A% General Mortgage Bonds, Series A

programs,

evelopment-first, because
lnancmg'results

in

the

with

bank

creation

Common Share Purchase Warrants

onPv^ ileP0S1h'. or Checkbook
!n ,ll?us-adding to. the supply
ecaS
funds! and second,

f

Bated November 1,,1956

? 1inay try to crowd too

nrh
uch capitai

':

expansion, whether

nie- ,°r Sch00ls or- both,
J *l°d S0 sh°rt-that we
ement
Iff6 a11 the steel, arid
hem
g i! needed t0 build
onev rh! reSU/t WOuld be much

nto

Norths-pan Uranium-Mines Limited

twofold danger 'in this

a

'

'

.

Due

•

July 1, 1963

Interest payable January 1 and July 1 in New TorJc City

a

>

an

Vcrrants

■"

•

i

common,

exercisable on and after February 1, 1957, entitle the holder to purchase 59
sltares- for each $1,000 {U.S.) principal1 amount of Bonds at $3.00
{U.S.) a share
; to and including December 31, 1966, the expiration date.

prices!°°
g°°dS' and
ro'wth AneVit^Ie tha*. if the
rise in

ithin

thf Credlt

Price 08% and Accrued Interest

18 t0 be kept

tPreSGnt capacity
the
or«e
woulri hXPlnd
Production/
et lessTl Ib+u
borrowers will

U. S.

conomv

Currency

they wish and,

ill

condrtr eE J6 to

is

avaiinKi

eloped

and

tA

"tici*ms?w

Copies of the Prospectus

be unacceptable
aJ5eady de~

be obtained from only such of the-undersigned as may legally offer
compliance with the securities laws of the respective States.

may

these Securities in

re have^ been
3 .restrictive credit
ihpeP^1Ved srpa11 busi~

hVf

°hcy

ess, and
rah.

get any Gr
on which

tbe terms

reSult!

hese

and >h

ho™-buying

.vet-

-

+u6 sdbool~short comborrn
funds they wished
km T U WOUld
be difesired
course> to create , the
ec
dim0ney'1 «"•» Period, of
°m credit
demand for tune's
'"king '?nhy b°rrQWers' theosits L? em can expand derve Sv!f
If the Federal Reunitv

MORGAN STANLEY &

V

nf

:■[

CO.

.

/

MODEL, RCLAND & STONE

THE FIRST BOSTON CORPORATION

MERRILL LYNCH, PIERCE, FENNER & DEANE

INC."

EASTMAN DILLON, UNION SECURITIES & CO.

CLYTIl <fc CO.,

GOLDMAN, SACHS &.CO.

HCRNELOWER & WEEKS.

KIDDER, PEABODY & CO.

S

LAZARD FRERLS &

^reserve^ ^ Provides the
;

Cof11bany'

i'Eney SuPPlySmrr'S: ?°?'ib!e tp
lodtv

USe

*

happe"cd

measu

th;8

^ear'




.

•

,

-

STONE & WEBSTER SECURITIES CORPORATION

Not ember 8> 1936.

'nHteriVe,y- Suc*
^ increased
that- U W,,al

,

CARL LEHMAN BROTHERS & CO.
M. LOEB, RHOADES

PAINE, WEBBER, JACKSON & CURTIS

Jolv-1 D«tviskir^NMy srtelbero befora
Ut

CO.

.

L

.

T.
.

-

SMITH, BARNEY & CO.
-

is
&

now

Co.,

9235 Wilshire Boulevard.

.

recent

affiliated

Hogle & Co., 507 Wert

personal savings or
ewly created money.i
Savings,

satisfy the demand,

of the pur¬

of the dollar.

usiness and

o

important

more

than the preservation

an offer to sell nor a solicitation
of an offer to buy any of these
Securities -The offer is made only by the
Prospectus.

hich may
be income but not
pent or income used to repay
Id debt, appear to be
inadequate

c.2
foe

credit policy to
offset fully a creeping inflation
brought about by the acquiescence
of employers in increases in coot

-Shis announcement is neither

credit

sources:

power

feasible

Reserve

Daniel

in

dollars

J. A. Hogle Adds

production

increase

product.

product. Un¬

same

products can bring a
inflation which depre¬

dollar.

Federal

terms.
An

in¬

consumer

his

way,

in

on

same

wage
policies and unwirs
decisions by businessmen in pric¬

costs; this is
fundamental to. a real improve¬
ment in our standard of living.
Competition
to
provide
higher
quality at lower cost is better than
competition in laxity of credit

bal¬

the

for

wise

businessmen.

efficiency in produc¬
increased productivity —

available

more

labor

Increased

pres¬

these

into the hands of

ditions

our

will

we

cram

what anyone does when he

are

year.

try to

investment than

.more

of

increase

an

the B, L. S.

point in

index

to

that

ing productivity. But, like rriedicine, this has to be taken by the
economic system in doses that we
can

In the time of

I

;

factor.

one

passed
prices.
The

rising.

and

an come

to

conditons

bankers

Funds to satisfy these demands

long

but

engine of inflation.

screen

persuade

seeking
o expand
their output or their
apacity to produce, although the
mount of credit in use by conumers of durable goods, by home
uyers, and by
State and local

or

interest

biuer

comes

overnments is also still

of

cheap

Discerning

the
de¬

business

rom

the grave risk

The Federal Reserve could

under

demands.

ncreased

run

"amount

money

make it'

satisfy

ble to
he

the

make

avail-

s

so

corresponding reduction
purchasing power of the

schools

saved.

of

upply

a

times

exceed the

u n

would

so

the

new

credit

o

the

measured., in billions of
dollars?2
The
cost
of
building

apital and
ank

to

^contributing to price increases
•

or properties, or
speculative activity,

of

were

tended

cheap

money

by themselves

the stabilization of the

assure

policy is

and

Beneficial?

service

a

mean

can

plant,- in¬

Our

economy at a high level of pro¬
duction and employment.
Credit

-/

dollar)

for

eraands

be

make

control.

this subject does
that, instruments
of
on

any .form

that school boards could save some
millions of dollars in interest when

(with

The

ervices.

it

credit

emphasized

productivity

gets

buy less of the

ventories, goods

lower interest

Money

of

increase in

creased

Stated

Control

has

credit control taken

to finance,

on

Credit

discussion

role

not

be

Cheap

Would

in

used

were

spending

of

concentration

reserves

provide the best antidote to in¬
flation by expanding the
output
of goods and
services, and by rais¬

people to

•of

produce the
oods and

would

expenditures bv busi¬
ness to increase plant and
to^improve equipment will
eventually

to do

o

provided

the

be

system

general price increase in

a

Is

for a few minutes
current scene. The econ-

It

Our

and

will

banking

purposes.

excessive

the billions.
Let us look

reserves

the

Role

growth

small

doubly unfortunate if the

illustration,

an

money to

to

these

both

of

business;

provided

Concluding nothing is more important than preserving the
dollar's purchasing power, N. Y. Federal Reserve executive
refers to two-fold danger arising.from bank financed longterm loans; the need for careful-loan screening; and harmful
effect resulting from capital nutlays in doses larger than the
economy

sustainable

requirements

Vice-President, Federal Reserve Bank of New York

First

and

J

the

generally
pays

bankers will endeavor to meet the
seasonal

than

1

WERTHEIM & CO.
/

wiili

Inc.,

and Financial Chronicle... Thursday, November 8

The Commercial

|

19J

(1972)

Commonwealth Stock

Commonwealth Investment Company and

S. M. V. Hamilton Wit!
Montgomery, Scott & Cc
PHILADELPHIA, Pa. —Monl

;

Fund—Prospectuses—North American Securities
Russ Building, San. Francisco - .4,. Calif.
• '

Company,
^ sU-'r[
Consolidated Virginia Mining Co.—Bulletin—Walker's Weekly
Newsletter, 333 Kearny Street, San Francisco 8, Calif.
Curtiss Wright Corporation—Analysis—Hayden, Stone & Co.,
,

Dealer-Broker Investment

Recommendations & Literature
understood that the firms mentioned will be pleased
to send interested parties the following literature:

Vilbiss

opportunities of

Resources—Booklet explaining industrial

served—Dept. K, Utah Power & Light

Lake

Wall

Beryllium—

to Brush

reference

particular

with

program

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 en atomic aircraft program and prospect for Britisn
use of atomic power and impact on
Canadian uranium, etc.

compari¬

Stocks—98th consecutive quarterly

Bank & Insurance

leading banks and trust companies of the United States
—New York
Hanseatic Corporation, 120 Broadway, New
York

—

Company, 15 Broad Street, New
Industry

Drug

.

—

Company

—

Analysis —
5, N. Y.

Memorandum
Street, New York 5, N. Y.
Companies

Foreign Oil
Broad

—

—

stocks—Zuckerman, Smith
Co., 61 Broadway, New York 6, N. Y.
...

High Yield—List of 11 high-yielding
&

Securities

Current information — Yamaichi
Co., Ltd., Ill Broadway, New York 7, N. Y.

Japanese Stocks

—

Richards

yield
York

performance over a 13-year period —
Bureau, Inc., 46 Front Street, New

market

and

National

Quotation

&

bond

Estate

Real

and

stock

averages—Bulletin—Amott Baker

work
and functions of the Exchange—New York Stock Exchange,
New York, N. Y.
Also available is a tabulation of listed
stocks which have paid a dividend every three months for at

Jones

\

Corporation,

*

CFC

Dept.,

*

*

Prospectus

—

53.

120

&

New

York

Fund—Prosoectus—Lord,

&

Abbett

Co.,

63

80

Howell

Company—Analysis—Stieglitz

&

— Bache
& Co., 36 Wall
Also available are bulletins on

McCormick & Gi
(Special tc The Financial Chronicle)

Corporation,

Investing

—

CHICAGO, 111.—Byron E. B<j
and John J. Weishel he

well

Inc.—Report—Herzfeld & Stern, 30 Broad

& Co.,

way,

Port

Stearns

Co.—Memorandum—Bear,

Both

320 North Fourth Street, St. Louis 2, Mo.

Chicago

Cather &

Report

Inc.

Analysis

—

Harris, Upham

—

I

De Leuw,

6, 111,

Grossman, Ballen &

& Co., 120

Hoffman

Broad\yay, New York 5, N. Y. Also available is an analysis
of U. S. Plywood Corp., a bulletin on Marine Midland, and
an

analysis of the vending machine industry

Ballen

Shares,

American

Selected

Investments

lected

Inc.

Title

Land

—

&

•

Salle

La

Jerome

Conditions—Summary—Research

New

Broad

15

5,

York

Inc.—Prospectus—Texas Fund Management Com¬
Life

Insurance

Co.

Elects Officers

Street,

Richmond

New

York

5,

N.

Locust

Y.

IS,

Beaver

Corno-a'^n

—

Memorandum

—

H.

Si

Hentz

Co.,

CO

"

r~"~r

ment Bankers

Va.,

Street, Philadelphia 3, Pa.
~~

"

^

InveJ
Associationj

DETROIT, Mich. —The

Toll

„

Chicaco

EpplJ

Michigan IBA Grou|

(New York)—Memorandum

Co., Russ Building, San Francisco 4, Calif.

—Walter C. Gorev

N. Y.

Hoffml

with

heim & Co.

Wellington Fund—Prospectus—The Wellington Company, 1630

Street,

Hoffmd

Mr. Ballen vf
with Lehman Brothers and Wej

Trading Dept., Ira Haupt

Capitol Products Cornorat'on—Report—Hemphill, Noyes & Co.,

Co.,

K.

Guerin & Turner.

—

52 Wall

Company—Bulletin—Georgeson &

engage

business.

formerly

were

be

in|
Partners
Crossman, Samuel

Building to

Ballen, and Edmund M.
Mr.
Crossman and Mr.

Box 2097 Ter¬

George A. Bailey & Co.,
Philadelphia 10, Pa.

Prospectus

Crossing

the GibrJ

Broadway, Room 707, New York 6, N. Y.

States

Virginia

Life

tar

Texas National Bank Building, Houston 1, Texas.

pany,

United

Se¬

—

security

Building,

Co., Ill

Texas Fund

data

&

Forme)

Texas —
Hoffman
has

formed with offices in

•.

Security First National Bank,
Annex, Los Angeles 54, Calif.
Investors

and

South

135

CF-11,

Dept.

Co.,

Prospectus

—

Department,
minal

DALLAS,

entitled "Push

Salesmen."

Button

ma|

for

associated

years.
—

Company, 150 North Wacker Drive, Chicago

Stores,

Safeway

—

thl

& Co., with which

been

had

-

.

Calumet Harbor

Lake

formerly officers of

were

C. Gibson

Company—Analysis—J. A. Hogle & Co., 50 Broad¬

New York 4, N. Y.

of

with McCd
South La SaJ

Street, members of the New Yc
and
Midwest
Stock
Exchansl

Corporation—Bulletin—Scherck, Richter Com¬

Gas

&

231

Co.,

&

mick

Co., 1

&

associated

become

Revenue Bonds—Report with latest statistical
information—J.
C.
Wheat &
Co., 920 East Main Street,

Bucyrus-Erie

at the Uii

Boswell, Weishel Will

Chemical, and Worth¬

Etreet, New York 5, N. Y.

Oil

Plomb Tool

Co., 67 Wall

Street, New York 5, N. Y.

milital

in 1949.

ing

Analysis

Supercrete Ltd.—Analysis—Unlisted

Company—Analysis—Security
Adjustment Corp., 16 Court Street, Brooklyn 2, N. Y.
&

Report

—

Martin

L.

Wall
Olin

Wall

Co.—Memorandum—Goodbody
Co., 115 Broadway, New York 6, N. Y,

enrolled

he

service,

Street, New York 4, N. Y.
Glenn

5,

Manufacturing

duril

serving
Following

Army,

States

World War II.

Aetna Securities Corpora¬

—

General
Wall Street, New York 5, N. Y.
Electric

P. R. Mallory

American Pipe and Construction

Bell

—

Southern California Business

Broadway,

Hamilton entered the Unitl

Mr.

Corp.

ing ton

Sovereign

Chalmers

Steel

Laughlin

&

Ling

David L. Babson Management

Street, New York 5, N. Y.
Allis

Analysis

—

Thompson Products, American Potash &

New York.

Affiliated

Co.

Street, Chicago 3, 111.

—

T|

Conj

School, Wellingford,

Choate

versity of Pennsylvania, gradu(

Street, New York 5, N. Y.

least 20 ye^rs.

Fund

mer¬

Following graduation from

tion, 111 Broadway, New York 6, N. Y.

Understanding the New York Stock Exchange—Guide to

Aberdeen

pape|:

Fund—Pros¬
The Parker Corporation, 200 Berkeley Street,

—

S.M. V. Hamilton

msp any,

o

chants.

Coe &

Refrigerator

Jefferson Electric

Y.

Co., Incorporated, 150 Broadway, New York 38, N.

C

La.

Orleans,

New

Butler

with

N. Y.

was

i ated

a s s o c

16, Mass.

pany,

containing lists
of
selected
securities for
income,
growth and trading—
Harris, Upham & Co., 14 Wall Street, New York 5, N. Y.
Public Utility Common Stocks — Comparative figure — G. A.
Saxton & Co., Inc., 70 Pine Street, New York 5, N. Y.
for Today's Investor—Pamphlet

Hamilton

Corporation—Study—T. J. Feibleman & Co.,

Building,

to

Prior

joining Mont¬
gomery, Scott
&
Co.,
Mr.

Seybold

Boston

4, N. Y.

Pocket Guide

presenta-

tive.

Incorporated Investors and Incorporated Income

up-to-date com¬

Index—Folder showing an

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

r e

De Witt

—

Company—Analysis—Jacques
Co., 39 Broadway, New York 6, N. Y.

Investor—Bulletin—Park,
Pine Street, New York 5, N. Y.

Ryan, Inc., 70

gis t e red

111.

Bulletin

—

a

as

r e

Company—Report—Mellott, Thomsen, Pitney &
Co., 29 Broadway, New York 6, N. Y.
,

Municipal Bonds for the Individual

Over-the-Counter

Dept.

—

& McKin-

Organization, 100 Broadway, New York 5,

Conklin

Gulf Natural Gas

pectuses

Burnham & Co., 15

Canada Limited

of

asso¬

with

them

Co.—Memorandum—Doyle, O'Connor &

Petroleums

General

Ilussmann

Foster-Mann, Inc., 40 Exchange Piace, New York
Att. E. J. Kesselman, Research Department FC.

become

Y.

Co., 135 South La Salle Street, Chicago 3,

Burnham and

York 5, N. Y.

Drug

Seaboard

and

letter

investment

Monthly

prospectus

Descriptive

has

Hamilton

Long

Merchandise

General

...

View

Burnham

—

V.

Samuel M.

ciated

11 Wall Street, New York 5, N.

non,

Harris

5, N. Y.

W.

that

nounce

Ltd.,

Bullock,

Dynamics Corporation—Report—Thomson

General

of

son

exchanges, an¬

Auchincloss, Parker & Red-

—

and Company, Inc., Westminister at
Parker, Elizabeth 3, N. J. Also available is a descriptive
prospectus on Diversified Investment Fund, Inc.

Development

Atomic

Inc.

Investors,

Hugh

CFC,

atomic merchant ship

(No. 22)—Comments on

Broad

Street, New York 5, N. Y.

Fundamental

Co., Box 899, Salt

10, Utah.

City

Letter

Atomic

Memorandum

—

Shares—Booklet-prospectus—Calvin

Dividend
1

area

Co.

Scott & Co., 123 Soul
St., members of New Yol
Exchange and other leadir

gomery,
Stock

path, 729 15th Street, N. W., Washington 5, D. C.- Also avail¬
able in a memorandum on Mississippi River Fuel Corp.

It is

Area

>

Street, New York 4, N. Y.

Broad

25

De

„

1

America, Michigan Group, at
annual meeting on Oct. 24, at t|
Detroit Club, elected the follow
officers and executive committ
members:

Street, New York 4, N. Y.

Frecferick Fayerweather

With E. F. Hutton & Co.
LOS

ANGELES, Calif.

—

fr

f-1 syr}-> "f *

with E. F. Hutton & Company,

J**

South

tt

™

Vice-Chairman:

Hurley, Baker,

.

Clark

Georg- F. Wheeler Opens

'
V

,

Harold Benjamin-Glark,

VALDOSTA, Ga.

,

limited

White, Weld
passed away Oct. 28.
partner

and many

623

Spring Street.

Harold B

Mississippi Valley Gas Co.

Fayerweather

passed away at the age of 75 following a brief illness. Prior to his

Frank

McCormack has become associated

p-rry-t

jr^^cEton^

William
Simonds & Co
Secretary-Treasurer
Robert
retirement he was associated with Benton Jr Manley Bennett & J
Eastman, Dillon & Co.
Executive Committee (3 Ye
Frederick Oakley

(Special to The Financial Chronicle)

Co.,

&

in

Wheeler is
business
Moore

from

George F.

-

conducting
offices

a

at

securities
205

East

™ nS ^

Executive Committee

Term)Roney

John
&

K.

Roney,

(3

Wffl

Co

Street.

other:

•

nFPFNHARir
UtrLnUflDLt

Operating Utilities

Marl° Investments

MABKFT^
MAKfttlO

ST. LOUIS, Mo.-LloydM. Mar.
engaging in a secrities busi-

The financial chronic)
HILLS, Calif-

-

BEVERLY

tin is

L.

Flan|

—

ness
•

Natural Gas

Companies

-

;

Mario

,

/

-

Investments.

merly

with

Inc. and

TROSTER, SINGER & CO.
Members:

;

;

N.

Y. Security

Dealers Association

CV-—




.

939

Oakridge

He

was

Inc.

Two With H. L. Jamieson

associated

Co

398

Los

.

C, Suran are

n<

with Daniel Reeves
South, Beverly Dri
of the New York r

Angeles Stock

Exchanges.

With Fewel & Co.
(8pec:al to The Financial

Chronicle)

ANGELES, Calif.—WillisLOS ANGELES, Calif. — W
ton
L. Bradway and
Norma V. H. Welch is now connected w
FQrd have become connected with, F.ewel & Co., 453 Sout:i-Spr
H. L. Jamieson Co., Inc.* 6399 Wil- Street,
members
of the
shire Boulevard.
Angeles Stock Exchange.
LOS

DEMPSEY-TEGEIER i CO.

for-

,ned°Taymond

King Merritt & Co., members

Federated Plans,

•(Special to The Financial Chronicle)

.

74 Trinity Place, New York e, N. Y.

offices at

Avenue under the firm name of

.

•

Transmission & Producing

from

Number 5584The Commercial and Financial Chronicle

184

olume

m

«

,.r •,„

in

vehtory.profits under FIFO? These
questions.j.cannot; be
answered

h*
.

likely

not

without

J "

*"

know

to.

the-

considerable

~

By K. W. ALTEN

original valuation

(cost),}not even rial . policythat of repairs and
immediately after acquisition and maintenance, "retireihehts and
prior, to
installation t; and "use." placements-of capital assets("reOriginal valuation, therefore, does pairs" for short).
Let us short.

from- iin aterial contained infinancial reports; Even management is

Of Industrial Investments

.

not

answers

research,

.

complete lack of uniform methods in financial reports of
industrials, according to Mr. Alten, makes it difficult for the
investor to compare and compels an analyst to first identify
similarities, reduce differences to a common basis, or evaluate
them —a costly process. Writer suggests procedure to establish
uniform methods and principles for firms in an industry, which
would not change present record keeping, but would allow
investor analysis in place of a guessing game. Reviews problems of inventory, capital assets, reserves, liability reserves
and surplus reserve valuation, and
the seven methods
employed in depreciation, depletion and repairs.

tions.

■

The

comparison is possible be- bered
tween

cial

tinan-

The

r

<

; and

reports of

the

are

"FIFO"

cor-

identical
filiated

or

af-

indus-

try groups. To
find acomparable

is

basis

often

an

lm-

task
possible
under
today's

financial

for

:

-

meaningless
used

In

this

.

needed

are
K. V. Alten

situation

and

practical

for t

eDrotec-

Investors and

tion of the investor.

analysts depend to a large degree

comparison of financial data of
corporations in identical

on

most

purchased
a

of

oldest

products

con-

conductive

hand

on

statements

selves.

ices such

periodically

corporations them-

Well known

security

serv-

ods becomes evident.
to

current

data

try

on

to

a

anal-

serious

reclassification

or

would

T e
the

the

put

comparable

statements

corporations offer

safeguard
common

furnish
tor

h i

; w

c

h

financial
This

basis.

a

of

different

common

common

basis,
of

treatment

problems, in other words,

disposed

at

capital
at

FIFO which.

a

common

their

denominator

comparison

with

each

:

>„

roads, public utilities, and finaninstitutions.
"Generally ac-

cial

fcpted principles of-accounting"

This is

high prices for

."strial

accounting. But what is
generally
accepted,"
what
is

vCIu
PPhcable

•

monetary

otten

to

a

the

particular

case

matter

of opinion, untainty, and conjecture amongst

between

ence

substantial

both

and

may

derstood by one

the

1955

reduced

were

capital

of

character

original

readily,
are

methods

be well

inflated report valuation of

But corporation reports
do not give this detailed informa-

'

tion

_

...

_

■

.

_

Depreciation and

is

Repairs

and

usually

do

conclusion.

any

not

permit

Differing

by

ment's

policy
pmicy

depreciation, ments, therefore, impede n
depreciation,, ments, tnererore, impeae further
comparison of capital assets,

a

i"

not an

+u

asset

terminates

its

Returning to the policy of de¬
preciation, amortization, and depletion: a multitude of methods

*u

j

zer0 or scrap value the

the

useful

life,

furnishes

varying

nual write-off

ditions to

policy,

through

in

the

turn,

the

rate

for

its

asset

connected

of

as

basis

depreciation,

These, in turn,

report valuation of capital assets.

with

for

Methods

is

another

closely

Used

Some of the methods in the

the

shown in the

are

Continued

manage-

any
are

on

page

means of the Offer¬
purchase of this Stock. This is published on
registered dealers in securities in this State.

City Bank of Cleveland

$20

Common Stock

stood that this reduction in

(#16 Par Value)

Rights, evidenced by subscription
issued
at

by the Bank

4:30 P.

in the

earn-

to

subscribe for these shares have been

warrants, to

the holders of its Common Stock, which rights will expire

Eastern Standard Time, on December

3,1956,

as more

Offering Circular. The issuance of these shares is subject

to

fully

set

forth

approval by the

ings
the

is

non-recurrent,

caused

by

change in costing methods at.

certain date. But differences in
valuation must almost be kept in

mind in the

*

\

fected thereby as outlined above
—would look quite different if
not the, adopted but the other
As

long

as

t

Inventories

importance

ike

a
;

.

of Common Stock

r'„

,

in the

prices hold fast

,

-

or

market

the effect of
and

of

keeping profits down

creating

reserves

latent

inventory

^

in

k

.

,

.

likewise-'stock-.

>

to

set

dealers) and

forth above (less,

not more

than the

by other dealers, plus the amount of any concession allowed to dealers.

Copies of the Offering Circular may be obtained from only such of the
-

•

of sometimes sizable pro-

FIFO-method,

reflecting

higher

in

undersigned af are registered

priced

merrill, turben & co„ inc.
-

'

harriman ripley & co., Incorporated

fulton, reid & co.

*

-equity and earnings per'corporation working with LIFO?;
working capital, and most What part of earnings of the other *
non-recurrent in- -i- i

•

prescott, shepard & co., inc.

tucker, anthony & r. l. day

,

tory valuation and in earnings if
each had used the other method?
How much of an inventory rer* - .
Serve is being built up by the

ar^

hayden, miller & co.

Mcdonald & company

_

curtiss, house & co. '

the first cleveland corporation

goodbody & co.

inventories is hardly of
help. If one corporation uses

6ry rati°

ball, burge & kraus

'

costing

^Omputed.
 " :: ;; t; corporation


dealers in securities in this State.

turn,

ending inventories, creates larger

much

°v»hiatfI"^

prices not less than the Subscription Price

dealers, the concession allowed

which Common Stock is then being offered in the over-the-counter

bache & co.

fahey, clarke & co.

saunders, stiver & co.

of

Differences

,o„_u>

at

to

.

.

.

baxter, williams & co.

cunningham, gunn & carey, inc.
-

figures.'

Wy-thL

at

'inventories FIFO and the other LIFO what
balance. sheet * and would the difference be in inven-

f°r

tfventory

of sales

rise LIFO-m«thod, while showing

few Gf the particular method used in
.

case

highest price

.

,

lscussion of only

Share

a

During and after the subscription period the several underwriters may offer shares

..

current profits as well as nonesult °m which To choose.. The
recurrent inventory profits when,
is an
almost complete lack
0ld, low priced inventories are
anifqrm methods in financial
sold.
'
'
•'
ikth °Lindustrials*"*Space per"
Indication in financial reports
1

Subscription Price $50

sense

f

"-Ples-

—

-

that inventory
valuation—and all other items af-

while

h

Comptroller of the Currency.

-

field, richards & co.

*

"

lawrence cook & co.
hawkins &

co-,
L.

.

November 8,1956

;

.

^

,

joseph, mellen

Cc

miller, INC.

h. l emerson & co^

W*-porated

wm. j. mericka & coding
B. schwinn & co.
.......

use

following practi-

Offering Circular. The offer of this Stock is made only by

„

an¬

necessary

determination of length of useful
of

in

lead to considerable differences in

Depreciation

life

results

charges and in ad¬

reserves.

suffers its "service death."

be

time

of
ui

manage-,

amortization, and depletion ("depreciation" 'for short)
through
which original valuation is periodically reduced so as to reach

*

earnings
million."
Of

ar>d

hidden policies of repairs, maintenance, retirements, and replace¬

aggravated

The National

net

capi-l

,tal assets.

100,000 Shares

un?•

then,
longer

allowed to

usefulness through increase in depreciation.
Here,
physical
and
economic values of capital assets
decrease beyond sound proportions and may reach scrap value
or zero long before expected life
expiration.
Reduced repair and
maintenance charges as compared
with prior years, excessive book
values of capital assets which

forbids,

valuation

assets.

behalf of only those of the undersigned who

it must be clearly under-

course,

^..management alike. To
I
1?atters» there is often
hip
variety of methods avail-

ape,

of

striking example:

company's

portions.

^

than where assets

Qn Jan.

fiiKfrfSi°na^ accountants and in-

old

parts

will., extend-

differ-" :

an<^ what is properly comparatively low inventories, has

an

arnhux
arning

historical

ing Circular, which should he read prior to

costing ending inventories, results
in higher inventory valuation and,

standard prevalent in in- method had been used.

lhe

nate

comparison

can

a

,

Uniform rules and regulations
do not exist in
industrial accounting such as in the field of rail-

xam

asset

any-

life

should have been retired long ago,
original valuation when acquired may sometimes tip off analyst and
at different times.
Thus, it be-, investor about the objectionable
comes
quite apparent that its in- policy and arouse his suspicion of

especially
hoWf>vpr

nature of the valuation

No

worn

useful

-

other?

J

of. managerial policies, as deter-,
mininS factor of annual charges
for depreciation, etc. and their,
accumulation in reserves (see be-r
low)> Aside from this, original
valuation is limited to a purely,
reporting character which is entirely valueless for comparative
purposes.
In times of changing
prices, even identical capital assets necessarily show different

comparisons

eal obstacle, however, is

very

itself.

1, 1955, the General Elec¬
tee of work is reserved for de- tric Co> changed its method of
tailed analyses by qualified &ecucosting inventories from FIFO to
rity analysts m specific cases after
LIFT).
To quote from the
comconsiderable research and study.
pany's financial report (page 22):
The question
arising, then, is: do "As a result of this new procedure,
financial

quite

'

this policy,

are,

statements without
ysis

are

amongst'each
^orations. us?

their

to

Moody's, Standard &
alone in view of consequently, in higher earnings
the multitude
of their publica- than
LIFO which applies lower
tions, in no position to publish cost to valuation of
ending in-"
more than mere
reprints of these ventories. The
as

Poor's, etc.

times

w^th each 0ther

and their cost is lower according
to lower price levels at the time

resorts

arbitrary

disagree

discretlon

moment at

further

management

at

a

places

^Comparison of capital assets is

dif£erentiy
when fixing original valuation of
capital ags*ts which (act is not

recently
stock. As

or produced
result, ending inventories

sist

to

bv

*ho

exDerts

?,thfr:
their

assumes

of their acquisition or completion.
or affiliated
industry groups to Results are opposite in times of
bring out the characteristic fea- falling prices.
tures of one
investment against
jn vjew 0f the general price rise
the other. The primary material
during the last 2U years, the pracavailable for this purpose are the tical difference
of these two meth*
issued by the

sometimes

whfc^^
known

from

purchase
pi

uiSSl ^
cretjonary

stop for

identical with replacement value., deteriorate rapidly, where repairs
Indeed.» th.e meaning of original are either referred to better years
va^uation is extremely limited. It. or kept at a minimum without
has its meaning foremost as basis offsetting the hastened decline in

or+ under. lump-sum

'

LIFO, in turn, stands

made

com-

ever
increasing
while
original
valuation is fixed. It follows that
original valuation is certainly not

in-.organization, against issue ofcapi-

f

sales

methods-

outright
outright

ot

?ases

recently purchased*.
determination
and, in times
of rising prices, are priced at the

for "last-in first-out" and
first-out"

the

-

^serious problem of original
valuation. (at cost) , should arise,
determination, however, bemes -Pf Jei^a ic when assets
a1^ acQuired y. merger, An

different

financial

of

cases

A,n

FIFO

first-out",

that

prohibit their
with each other.

and of self-manufacture of assets,

the

goods

provements of or processes.

plant,

additions'

almost

parison

consist of most

produced

the

capital assets in reports of differ-''
ent corporations is so varied and

-

the sense that sales are considered
made from oldest stock. The ef-''
feet • is
that
ending inventories
or

estate,

explanatory within the financialset-up of corporations: ^ * - • •
Uniortunately, the valuation of

r

;

and

results.

"First-in

real

program
of industry
make
the.k importance of
capital assets self-

t

of

stands

of

equipment and

contemplated by today's'
multi-billion d o 11 a r expansion

:•

"LIFO"

different

size

•

.

•

methods which, in times
changing material and comporations in modity
prices,
furnish
entirely

different

.;
'
Capital Assets

thereto

that two of the foremost'

methods

"
-

.

,

Financial reports of industrial
C)ne of the problems of inven-nrnorations are based on such a tory valuation is determination of
variety of methods and principles inventory cost.
It will be rememthat no

*

.

In times

prices, capital assets can-. If management applies a policy of
replaced at their original at least normal repairs, keeps
valuation;
Replacement
cost
is assets in tip top shape and renot .be

.

Certified Public Accountant, New York City

market value.

mean

of rising

or

) not at all.. However, without this
knowledge, there is no comparable
basis given for different corpora-

,

9

(1973)

1

29

Chronicle..

The Commercial and Financial

20

and 57% of the individual
companies made third quarter in¬
creases.
Earnings, however, gen¬

make "rolling adjustments" without
notes after tax corporate net income tended to
and that reported cash dividends set a new high for

decline;

period.

first nine months
Dividends, corporate earnings,
'md economy's strength are revie wed in the November monthly

1

'publication of The First National
City Bank of New York. Report¬
ing that "the record provides evi¬
dence of the resiliency of today's
kconomy,"
the
"Monthly Bank
Letter" notes that "a similar dis*

*

play of strength occurred in the
first half of this year when gross

continued to rise

national product

automobiles,

j.teadily
although
Homebuilding, and

fluctuations will continue to

be small has encouraged them to
which

are

a

right."

ing

have in fact lagged .be¬

sales, due mainly to declin¬
car stocks of auto deal¬
which offset increased stocks

new

ers,

in o[ther
flow
of

lines. A downturn in the
and

orders

new

sales

that

evidence

no

let-down is
of
busi¬

a

Peak

imminent.

show that dollar sales in the aggre¬

rates

In contrast with the first

two

of this year,

quarters

when

preponderant gains were reported

rising trends a year ago, the
latest quarterly earnings figures

activity

pated

few months

next

the

for

antici¬

widely

are

"and there is every indication that

output of goods

the nation's total
,

and services in the current quar¬
will

ter

record

the

surpass

rate

$413. billion per year reached
i in the third quarter.
This holds
of

pessi¬
is

true whether one takes the

mistic

view

tv»o

the

that

loct c*o«oS 0f a

started

1954

in

economy

boom which

optimistic

the

or

outlook that the uoturn following
tne

rolling

1956 is just

beginning.

work

of

momentum

in

current

reinforced

progress,

by

heavy backlogs of unfilled orders,
construction contracts, and other
commitments,
to

business

carry

new

sufficient
well into the

appears

year

at a high level. New or¬

ders for manufactured goods have
lun

ahead

consistently

ments

in

the

past

ship¬
the

of

year,

and

growth in backlogs has been near¬
ly Sl1^

billion

tories
end

month since late

a

Unfilled

spring.

totaled

of

orders

at

the

(the latest report

earlier

year

total since late

fac¬

and

than
highest

more

the

1953.

"Business inventories also have

over

the

third

the

for

decreases.

profit dron were the steel strike,
affecting the steel producers, steel

third

National
bined

City

net

the
says

Bank,

com¬

after

income

taxes

of

$2.4 billion—15%
quarter of this
year
and 9%
below the third
quarter of 1955. For the first nine
months, the net income total of
second

the

tended

vances

not

werp

to

billion is 1%

above'the same

this

of

months

ing,

well

and

gas

ha,f of this year.

and

in

as

finance.

"For

the

tries,

which

about

three

together
-

fourths

make
of

the

up
re¬

ported totals in number and in net

income,
earnings
year.
ever,

the

third
quarter
12%
under

were

net
last

For the nine months, how¬

such totals

were

practically

"Sharp
stf>ei

decreases
group,

as

a

occurred

in

result of the

year have
unfavorable,

this

changes

-the

according to the regular monthly
tabulations
by
the
New
York
"WorM Telegram & Sun." During
first

the

gains

half

than

quarter,

as

stock.

and

paid

by

stock

serves

at

dend

of

—

the

time

so
manv
are
compelled to carry. This
debilitating to their energies and peace of mind.

it

ud

if

income

his
the

listed

of

cash

the

New

rate

Exchange, there were
companies that during

stock

dividends

of

24%

or

less, compared with only 56 com¬
panies in the same period last

In addition, there

year.

merous

stock

ing from 25%

were

distributions
up to

for one—classified

nu¬

rang¬

several shares

as

stock

splits."

PASADENA,

Calif.

Kubitschek

has

"Popularize the notion that it is fun to be a scien¬
tist."-—Morris Meister, Principal of the High School

465

city.

The basic trouble, of course, is that mathematics
and science

like many

"hard," and present day students,
of the rest of us, do not relish real work.

East

Raymond

—

been

named

intervened.

office at

Avenue, it was
by comnany officials.

for the past eight years

sales
years

capacity,

in

a

moved into

Soutf

was in the most logical positior
And it did move without comini
to the United Nations after it hat

It

came

fact.

It is also

a

fact that Truman

didn't evei

'

"

Harry Pon Adds

Inv. Women of Chi. to Hear
'

GHICAGOy III.—Harry G; Kipke,

,

Chronica)

(Special to The Financial

AZySA, Califs-Henry P. R"
Company of Chicago, will speak has been added to the staff
to the Investment Women of Chi¬ Harry
Pon,
711
North Az"
cago
and
their guests at their Avenue.
President

"Bosses
Nov.

of

ball's

Coca

Cola

Bottling

Night" dinner meeting

14 at

ciation.

the

Mr.

on

Chicago Bar Asso¬

Kipke,

all-time

coach at

one

greats

of foot¬

Two With

the University of Michi¬

Arnol*

Lloyd

Chronicle)

(Special to The Financial

and former

Calif.-W

BEVERLY HILLS,

Thorn
connected w
Lloyd Arnold & Co., 404 No'
University of Michigan. He Camden Drive. Mr. Thornton
speak about football as re¬ previously with Samuel B. D"3
is

member of the Board in

a

of

the
will

lated

to

the

Board

of

Regents

ter

Davis

have

and

Bruce E.

become

of

business; his topic being,

lin & Co.
j

"Coaching Is Tough, But Business
Is

Tougher."

Joins T. R.

BEVERLY HILLS,

(Special to The Financial Chronicle)

O. Goodell has

BURBANK, Calif.—Clarence E.
Hardin is

Co.,

912

now

with W. G. Nielson

North

Hollywood

Way.

Peirsol

(Special to The Financial

With W. G. Nielsen

a

and has over 32
experience in the securities

investment industry.-

This is

shoulc

he put it,

to Congress.

go

Dempsey-Tegeler Los Angeles of¬
fice

as

against this aggression.

to the United Nations,

He has been associated with the

are




Pasadena

Green

announced
•

of Science in this

to move

and

resident manager of the Dempsey-

Tegeler & Co.

This nation,

Korea.

Control of Intercollegiate Athletics

Dempsey-Tegeler Mgr.
E.

a

Back in 1950 he recalled, the North Koreans

gan,

is

And if thev
minimum loss of liq

conflicting nationalistic groups.

night of the vote to censure the three aggressive countries
not be lost.

divi¬

the first nine months of this year

paid

waij

By way of keeping the record straight, the words of the Britj
General Assembly of the United Nations on tha

for

York Stock
81

arj

theij

company

According to

same

Governments

ish delegate at the

gives

cash

politically expedient thing. This weakens our vaunteq

in regaining the Suez Canal with
everything will be forgotten.

in, current earnings

build

a

in foreign

succeed

recognition

some

be

to

happens that the British and French

so

weariness than from

require¬

same

position

poor

being subject to bitter criticism in their own countries for
move
against Egypt.
But the criticism comes more from

in

cash

a

Every acticfrr that is taken

It

own

growth

the

stop the extra afternoon and evening jobs

which

its

in

are

might to the extent, in fact, that we frequently seem impotent.

only,

made

we

has to do the

of

conserve

to

maintains

the

so-called global
affairs has to ba
explained to too many segments of our people with varying racial
backgrounds and it becomes subject to political controversy. Toq
often our State Department can't do the most effective thing; ij

dividends

in

Arabic world.

pointed this out before, but we are so constituted as

that

leader.

third

dividends

-

shareholder
also

I have

from the

distribution

of his interest
and

the

seen

company

a

Such

He set out to organize the entire

alone.

given in the 'Let¬

cash

company's

.

be

exclusive

are

ambitious

nu¬

more

during

may

cover

.

This was very high principle on our part no doubt but the
Egyptian dictator didn't have sense to let well enough

Egypt.

summary.

"The figures
ter'

period

same

relatively

merous

July strike, and in the automobile
group, reflecting the curtailment
in production; without these two
important groups the manufactur¬
ing categorv would show a 6%

citizenry and they have members in Congress to speak for them.
It is a fact that we don't have many Arabs voting in this coun-l
try but we do have so many other nationalist groups that our govH
ernment felt impelled to encourage Egypt's nationalist aspirations
and it unquestionably brought pressure on Britain to get out olj

the

however,

year,

the

over
we**e

foregoing

"More than half of the industry

also the favorable

exceeded

well

1955

even.

tuo

dividend

reduction.

of our population. Let a revolution break
nationalist movement get underway, and
likely peoples from the countries involved are among our owr

nation

numbers

"In

manufacturing indus-.

potential Scientist or
engineer study mathematics throughout his full
four years of high school. For only then can he
enter a college, university, or
engineering school
properly equipped to handle the technical courses
which he must master."
Albert E. Meder, Jr.,
De?n of Administration,
Rutgers University.
"Pay qualified teachers for an additional period
of science and mathematics
teaching each day, so
to

to

trade, railroads, electric
utilities, communications,

dividend.

as

very

of manufactur¬
the fields of

categories

as

encouraged this

the heterogeneous nature
out most anywhere, or a

Department of Commerce compu¬
tations. Increases occurred in all

major

we

pirations of peoples. We like to attribute this to the fact that we]
ourselves, were once a colonial people and won our independence
from the mother country. But more likely it has deeper roots in

-

according

period,

the

for

ord

re-j

out of that war with their empires

came

Our traditional policy has been to encourage the national as*

.1

;

rose

year

Both

they were further reduced after World War II. And ir

each instance

dollar total to set a new high rec¬

mining,

Problem, But Hardly
that

World War I.
duced and

first nine
13% in

the

during

payments

appre¬

[

■

v

experience, however, should bring into sharp relief the
policies of our government and those of the
Governments of France and Britain which have existed ever since

and
competitively

Dividends Increasing

on.

The

lag behind

always

This

basic conflict in the

to

Publicly reoorfed rash dividend

the

essential

now

profit

protect

to

prices

appreciation of the Franco-British attitude.

ciation, this understanding, will become increasingly apparent froii

margins in the face of rising labor
and material costs but nnce ad¬

First

by

approximately

below

advance

empha^

past several days the Administration has repeatedly

sized its

buhding materials.

attempted

moan-j

over

of the

material

"Manuafcturers

Carlisle Bargeron

those influences who have been

the "break-up" of the Western alliance, who have beer
saying that Russia made a great accomplishment in splitting it]
will find their apprehensions unjustified. Throughout the tensior

ing

companies for

Quarter,

A Solution
is

With the elections over,

industries; rising labor
costs affecting in¬

appliance

hold them in check until after

did hope to

the elections.

and

ments:

"It

It

industries,
railroads,
others; the forced curtailment
of
output
to
correct inventory
accumulation in the automobile,
farm implement, and some of the

consuming

statements

the

of

"Tabulation

Israel intended to do.

right. The Administration knew very well that
Britain and France were straining at the leash.

:

quarter

in total ignorance

and

Important

more

possible.

of 694 non-financial

the

narrowing

last year to substan¬

of what Britain, France
This is only partly

was

reasons

a

The

paign was on, has had to take the criticism
that its intelligence system broke down, that it

year.)
"Among

;

ably pretty much that way now.
!■
The great crime these three nations com-"
mitted in the eyes of the Eisenhower Admin¬
istration is not what they did but when they
did it.
The Administration, while the cam¬

first nine months, the
manufacturers'
net
profit margin narrowed from an
average
of 7.8 cents per sales
dollar in
1955 to 7.2 cents this

increase in the third quarter.

$61.8 billion

August

available), $10 billion
a

at

of this year to
quarter.

(For the
reporting

period of .'55, thanks to the wide¬
spread gains registered in the fifst

Orders
I

"The

tial

generally

from

spreads

$8.1

and Unfilled

New

early

of

adjustment

range

1

will swing around to sup¬
port this action; indeed, public opinion is prob¬
Public opinion

•

latest

the

in

cents

6.4

displaced by a force
recommended by

by smaller nations

the United Nations.

in

cents

7.4

and

the second quarter

and

over

ness

1955

of

ouarter

they aren't likely to be
made up

cents in the. third

rowed from 7.5

BARGERON

Washington observers is that now with
the elections over, the Middle East situation will rapidly become,
accepted to be just what it is now: a "police" action by Britain]
France and Israel. That is the service they are rendering now and
The consensus among

the
dustry quite generally:
and the
relatively high rates of the first
slowing of the residential hous¬
half year.
Corporate net income
after taxes, however,
tended to ing boom and in demand for
gate were maintained around

decline.

is

there

finds

"Letter"

The

real

be

can

if they

-

commitments,
force for stability

long-term

make

*

hind

of the News

By CARLISLE

standing at ing
expenses
usually
brought
the end of August at a new peak about a decline in earnings; 21%
of $86 billion, $6.4 billion above a of the companies showed sales up
For the reporting
year ago. Nevertheless, the rise in but net down.
the aggregate does not appear to manufacturing
companies
as
a
have outrun the rise in sales.
At group, the average net income
the retail and wholesale levels in¬ after taxes per sales dollar nar¬

several other would, of course, result in inven¬
industries
were
simultaneously tories becoming topheavy, but un¬
til such a downturn is clearly es¬
undergoing sizable contractions.
tablished over a significant period,
*Ihe
ability of the economy to
the weight of inventories alone is
make these 'rolling readjustments'
not likely to precipitate a business
without a general downward spiral has been a
noteworthy and decline.
encouraging development of re¬ Third
Quarter Corporate Earnings
cent years. The smoothness of the
"Corporate
reports
published
adjustments has impressed both
last month covering the third
business men and consumers, and,
quarter
reflect
the
continued
consciously or unconsciously, has
near-record level of over-all pro¬
influenced their decisions to buy
duction
and
consumption
and
and build. Their faith that busi¬
ness

Ahead

continued to build up,

ventories

Washington

indicating

ing ability of economy to

decline;

From

than sales,
costs were
rising faster than sales and that,
consequently, profit margins were
being squeezed. Especially where
the sales gains realized were only
moderate in extent, rising operat¬
increased less
that total

erally

Bank's "News Letter" reports an encour-

First National City

-

193

groups

Dividends

Earnings and

The Economy,

,

Thursday, November 8,

.

(1974)

T.

R.

Peirsol

Chronicle)

Calif.-^

joined the
&

Co.,

Monica Boulevard.

staff

9645 Sa>

Number 5584

234

olume

The Commercial and Financial Chronicle

...

(1975)

into

Price In the Stock Market

alue vs.

stocks

FRANCIS B. WADELTON, JR.*

By

a, vague

The' result

vails

normal

careful distinction between value and price
factors as prerequisite to successful investing. As principal
elements of value of a stock marking an ownership share in a
going concern, he lists earning power and its quality, including
Mr.Wadelton urges

of

Japan who

der such
as

and growth prospects; risk factors includ¬

management ability, product and market diversification,
regulation. Cites relevance of
prevailing return on invested capital. Maintains price is
affected by psychological factorsv which have no part in

mportant. It
alue
and
rice were al-

companies

quality

tin g

of

great deal
it

e a

Other

that they are

value

alway.s

for

time

any
F.

B.

investment in it.

'

ulation.

which

cause

price

by

'value."

mean
.

_

is

ess

when

uys

part

ownership

a

ompany, he is buying

ts
o

,

earning

a

So, if

power.

attempt to

company's earning

orm

some

ton
e

conclusion

operating conditions.

Now, it
he

is

well

,orth
toer

of

some

more than
is

an

consider

as

Y°u may

to

how

,

i

in

that the
are

element of quality to
'

reckoned with.
0

.

v

quality Factors in Earnings
1
consider the most
important
in§ie factor in
the quality of a

°r more compounded
'

+and the
such

a

companies
rate

thatSlderablv more
Srow at
iat

an

*

A

tat w

Public

which

the

range

let

of

us

not been

Then the

reverse

drastically

than

price.

"infla-

a

spectacular

relatively

short

\®

•

,

U

F"

the

+-n

sonant
been

with

placed

y uU

dict

vJ?nT

period

sume

k

aro

an-

that

worth

than the

average

ones

rate

»

FounHnf^r" .Wad,elton before tbe

22, i956

popular with the invest¬

is

the

in

trust

short-term
In

market

due

government

his hands

of

other

cline

the

people's

He doesn't attempt to pre¬

the

psychological

and

tem¬

factors. His concern is pri¬
marily with the determination of
values. Then, when market forces
porary

,^e

~

®

»I_hope lliat wten I was talkfj ftouttow market prices diffrom values, you were left

to

at

their

to

advances
In either

;;.'bN.w'Y«kCc»y
City,




are

case

up

This

are

announcement
-

-

.

as

means

good

country,

the

ginning of the cycle and the
ess

continues

Over

they

are

neither

an

to

sell

nor

a

solicitation of

as

before.

greater than that

of

the national

whole while avoid¬
ing undue risk. Such a long-range
investment performance is made
possible by the careful distinction
between the factors entering into
economy as a

and

those

which make for

an

offer

to

buy

any

of these

made only by the Prospectus.

NEW ISSUE

V;

in

'

$4,000,000

;

Fortu-

small probability of another

ACF-Wrigley Stores, Inc.
4%% Convertible Subordinated Sinking Fund Debentures

or "Tulip
Mania" where sneculation reaches

Bubble"

due

April 30, 1972

_

(Convertible into Common Shares to and including April 30, 1972)

-

Price

100% plus accrued interest

Copies of the Prospectus may be obtained from the undersigned only in such States where the

undersigned

may

the place of brains, new sources
of ^ht, Neat pumps atomic ener?y, satellites—all have become
Part of the mental climate of. our
day. Just as the psychological mfluence of the idea of "stagnation
affected prices in the 30's, so toprices are affected by scien-

legally offer these securities in compliance ivith the securities laws thereof.

tifk

wonders

usuany

crystallized

oAllen & Company
November 2, 1956

man¬

proc¬

long period of time this
method should provide growth of
principal and income substantially

psychological,

lately, it is also, because of this
oxcellpnt system °f communication that "unrestrained rumor is
held in check, so that there is ,a
/'Mississippi

offer

Debentures. The offer is

price
while

a

..

of communica¬
as

is

those

to prices.

the investment

.

considerably the deter-

or

restricted

price.

or

two

ager finds himself back at the be¬

value

under

of

which

values,

growing values catch

they

substantially

bonds.

Either stocks de¬

point

a

relative

affect prices to the point at which
are

as¬

Ac¬

formerly overpriced become low

a

has

in

risk.

either

course

things happens.

time

which

knows

manager

good time not to

a

too much

may find it wise to
accumulate cash to be invested in

the

over

of

fi¬

price

a point of un¬
stock he sells that

a

investment

that it

since he knows that this requires
the assumption of risks not con¬

money.

SPli?

+f

T<?w

A

showing

of

cordingly he

1

,

Price, is

"confidence,"

factor is verY Powerful.

very

prudent

at

wllile I was

recall that in the thirties
a
"theory of ecoThis became

When the

this

pos¬

management

minat;on of the price at which a '

tion

proc¬

prices discount

shoe's,

excess

portfolio has evolved to this point

man¬

use

can

excess

public.
Such stocks involve
the least risk with respect to
gen¬
eral market decline and when his

investment port¬

evaluations

buying those stocks

ing

having at his disposal a staff
adequate to make the necessary

security

exceed

prices advance further he

folio

t„

to

investment

isfactory values, but which have

typical

the

the

continues to sell various stocks.
His portfolio is then
likely to con¬
sist of stocks which
represent sat¬

to the short-

how

see

large

a

As

one.

price-determining factors.

Now
ager

begin

values

value reaches

over

receives, although usu¬
ally including value elements, is
found, upon analysis, to be based
on guesses as

and

manager's portinvested.

prices

as

due risk for

investor

largely

invest¬

more

During this phase

nally, when the

ama¬

of

rema^ fnjiv

existing

have already seen, this

advice

to buy,

investors and

aware

investment

manager stops
in which the

elements which represent the dif¬
between price and value,

the

securities.

But

While the professional trader

as we

which

opportunities, prices and val¬

f0u*o

othTr

nualiv
grow

the

long

more

become

tend to coincide for

more

suc¬

over

ues

attempt is doomed to failure. Most

haps certain ideas have occurred

extreme proportions.
"
Nevertheless, restrained specu- ompany's earning power to be la tion is still fed by rumors andlong-term growth prospects. ideas in a garb that seems authori0
explain this let us
assume that
tative.. One source of such price
ver a
period of
many years 0urTnf1u?nce, is
scientific discovery
^noijy will continue to expand and invention. With -the advent
that any
large, well-estab- of atomic energy nothing seems
•sned
concern will increase its impossible. Hence there has been
rnmg power Somewhat in the a great upsurge of confidence in
oSS of Such
homing its competitive scientific research. Eynry new
"ion.
a
companv
mieht announcement from a laboratory
an
averse
inSent o
greeted with bated breath and
*
a year. On the
hand, imaginings of future benefit. New
at Kw
e demonstrated growth dru£ cures, new machines to take

2^%

ment

constantly makes the mistake
trying to foresee the various

and,

While I have been talking, per¬

security should be bought or sold.

vari-

companies

Ov,«ori

sets in and

more

stagnation."

fluenced

might

1

were

is, those

existed

nomic

the earnings of
In other words

companies.

now

there

and

recognised

investment'profession

arnings

o

as

of -

sible unfavorable conditions much

affecting a psychological factor which in¬

to make under

as

and

more

traders

teur

Consequently, prices tend

judgment would warrant.

that

power

who

operates systematically, the

Few

these
any standard

of

decline.

ess

present-day

affected, by psychological factors
which have; no part in' the deterruination; of value. Some of these
osvchoiogical influences are well

one were

money the company

expected

tes

us

step would be to

jvestigate the factors
to

run.

relate

value and not market price.. Let

estimate the value of

stock> his first

u^d°r

it

tion," "uncertainty," "rumor," and
claim'on jnany. others.
Perhaps some of
of

As

of

perplexity

manner

Then the

Matching Prices and Values

of

state

ference

Q-llwic.

Price

investor, known

the

stocks, but

To this point I have talked about

company is in busimake money
for its

and

tMs

stocks

common

will have borrowed
money
additional securities.

The nonprofessional trader
may
occasionally be successful for a
short time but never is in the
long

com-

to move well
ahead
of
current
va^es and finally discount future
•

traders

in

most

greatly underpriced with

their existing values.
Sometimes,
as
Affiliated Fund has done, he

Success Temporary

the

forced.

Psychology and the Market

a

to

ana-

estimate of

or

that

show the greatest percent¬
gains if they were to sell at

age

periods of time.

ascendency, prices Tend to
move higher and the
higher they
go the more The ideas are rein¬

analytical techniques.

is investing in
The worth of a

wners;

do^e

be

can

going concern.
oing concern is dependent upon
ts
earning power. After all, the
eason that

fessional

not

psychological factors
it is only the trend of
prices that matters. Hence so long
as an optimistic set of ideas are

a

portant invsetment

by the term

.

he

an

general buyer
a

depressed by psychological

.

all, we must bear in
ind that, with very few
excepions, when an investor buys a
stock

result the security

arrive at

the

approaching

so

their prices—that

increases'.Mo°eand

of

ommon

a

is

.

would

de¬

one
additional element, namely
distinction between value and
th
rj;v £ t
, course ,teadI
the prevailing return on invested
•price to great advantage. The in¬
capital.
vestment manager is not one who
people refuse to take the risk and
It is not an easy job to estimate
follows the methods of the pro¬
The market becomes, vulnerable to
values of a large number of im¬
fessional trader. He does not aim

The Meaning of "Value" "

First

as

can

have

'to the outlook for stock prices and
attempts to beat them to their de¬
cision. There have been some pro¬

dominate

in

I

advantage of it.

either enthusiasm

Where

of

value for that stock. In doing this
he has to take into his calculations

differ, it is necessary for
to describe thd principal eleents of value.
Then you will
I

a

ancj

stocks

reg¬

risK,

when

to

as

may

election.

what

•

manager
buys those
that show the greatest values for

that he may be informed

so

cessful

to

of

aware

may be.
Exploiting

investment

appli¬

sys¬

It may

an

it

tems;

-'

press and other means of

practical

operates in what is known as
the technical position of the stock
market. He follows elaborate

Cumulative Psychological
Effects

investigated and weighed
competent security. analyst,

iySt

e

what

the

greater

*

affected

the

to

case

relation to their values.

He

the

we

are

Practical. Application
as

scribed and takes

of value.

ke

can

alue to

now

ele¬
items

With reference to any particu]ar stock these elements of value

and

-

The

are

short-run factors to

course, the. less the value,

Before I attempt to discuss the
actors

risk
such

ket

many

eliminated

Perhaps

*he outcome of
people attempt

of

together

inventories, and government

/
r

of

of

The

the values, he can buy or sell

the

There may be times when
prices

cation of these concepts. The
pro¬
fessional trader in the stock mar¬

be the President's health, an international incident, a scientific discovery, or

sification of products and markets,

Wadelton, Jr.
price
ay exceed
alue materially, and vice versa,
ot only that, but price may be
eclining while value is increasng, and vice versa. This explains
hy you may buy the stock of a
rowth company and the company
ay grow, but-you may
in the
ame period lose money through

tock,

heading

These include

belief

have

cycle.

munication.

are

elements

grouped

current

we

Prices

.the

the earnings

as

A

that

quality of management, diver¬

as

particular

our

the

ments.

be

to

not vulnerable,

important

may

under

-qual. At any
particular

companies

are

become

.

only bv
basic psychological state but
also by the daily shifting of the
winds of oninion as influenced by

The. earnings

much

as

as

Now

the

have

vulnerable

vulnerable

of those which

The fact is

ot

the

is like the people
live in an area of

timistic hopes.

•

better

or

a

have changed it in sorrip wnv'vT'V
thp -important thing is that ennh
an idea becomes a bis s for exn"c
tations that are no more than optatinnc tw
^
p

general

respects

recession.

not worth

asier than

equal

other

extremely

business

locks would

of

in

proven

'n common

's.

by

business conditions whereas other

equal,

ays

nves

Another important element
value is the stability factor. I am
sure that you are all aware of the'
fact whose
that there are some companies
earnings have not been
- u
* *
too
affected

be

situation it is accepted

a

business

of

greatly

to

seems

people, apparently including some
outstanding economic authorities,
is

•

attitude pre¬

an

factors

I have tried to tell you.

times

normal.

Eras."

determination of value.

between value
nd price in the stock market is
robably the least understoorT-reation; yet I think it is the most

the feeling- that forecasting
psychological' arid' temporary
factors is virtually a hopeless task.
If these are the impressions
you
have received up to this
point in
my talk, you have learned all that

It is the operation of
such psy¬
chological forces in the stock mar¬
ket which leads to beliefs in "New

ing

difference

It

30

over

the

some

-

it

more

one.

above

with

growth.

that

earthquakes and typhoons. After
they have lived long enough un¬

inventories, and government

The

the

of

been

sold

earnings.
The longer such

Vice-President of Affiliated Fund, Inc.

stability, long-term

concept

has

have

II

Chronicle

The Commercial and Financial
12

pull- unit in connection with loans now
c™ > being insured:
->*•:,<
: (4) ,.Certain Certificates of Claim
Portfolio Commitment Choices
issued
by F.H.A. to cover any
losses to the investor not covered
It is admittedly ditficult to opf
erate a
mortgage program I- on a by debentures have a greater po4
large scale without either causing tential value under provisions of
too many loans to be submitted for
the current National Housing Act.
closing at a particular time, or
FHA-VA Weak-^s
causing
funds
to 1 remain
idle
awaiting closing of loans for which
banks to

position jof asking

;;

t

By G. D. BROOKS*
Vice-President and Treasurer,

the

interest rate reduction, in

nor

,

executive perceives no loan demand

Prominent life insurance

decline,

Nashville, Tenn.

Insurance Company,

National Life and Accident

commitments

future, barring

near

such

attractive features piortgages still offer.

discuss some of the fac¬

I shall

tors

caused

have

that

the

con¬

gested condition that exists in the
mortgage market
some remedies
for

ady.

has

too

the

upon

-

provided

and

bonds

bet¬

a

financial

to

units
fast, and

ments

stitutions.

that

this

con¬

struction

has

statement

of

in¬

To say that the

that

1

picture
has changed is to make the under¬

t

without

realistic

with

e

respect

li.

U.

par¬

ticularly to down payments and
length of maturities. I have re¬
peatedly made the statement that
we
could not expect to build, fi¬
nance

and sell

million

one

or more

housing units each and every

new

bringing

without

year

about,

a

financial crisis.

The continued at¬

tempt to do

has now caused

so

financial crisis to exist insofar
the
is

real

a
as

return

mortgage market

portion of their funds in

Thev could suf¬
reducing rate of
their investment port¬

on

The

situation

some¬

was

the Navy during World
During the early part of
service I was assigned to the

my

Office

75%

is

Neither

costs.

talk

to

ments

amounts

of

equal

to

of current construc¬

80%

or

tion

in

made

it

reducing

the

insured

opinion,

in

my

an

excess

universities

Texas

with

talk

to

the students about enlisting in the

Army Air "Corps
officers

Navy program.
Marine

nut

on

bank

the

procurement

there

also

show.

a

they

The

band

Air

Corps

extolled

the

the officers

and

of

virtues

their

re-

Is

Blame?

to

ply of available

Everyone concerned must shoul¬

the

when

not

der his share of the blame for the

is when

and

investments
is true.

reverse

only

the

on

program

ket available for F.H.A. loans with

bers

the

the

Congress who passed

the

legislation that helped ere*
housing boom, the various
organizations who sponsored the
legislation, homebuilders who cre¬
ated
millions
of
housing
units
without real regard to the sound
ate

a

demands of the market, mortgage

companies who attempted to

con¬

vert to

minimum

of
7% was at prices substantially be¬
low par. On Sept. 20, however, the
minimum down payment require¬
ment

seems

Certainly

smaller

stitutional investors who

supplied,

mitting funds expected to be

re¬

ceived many months in the future.
believe

I

we

can

agree

that

a

monster has been

question

created, and the
involved is what can

now

be done with it.

believe

I

should

members

of

Congress

legislation per¬
taining to Government guaranteed
and insured loans from the stand¬

point

of

housing

the

develooment
rather

program

of

elite

b

finally

ar¬

drowning meet me in room 240
the meeting adjourns."
In¬
cidentally, we signed up most of

after

than

a

organizations

secondary to the public welfare.
I

believe

homebuilders

should

adjust their production of houses
the real demand

to

of the

buying

public.
In

determining real demand, it

is necessary to

consider the will¬

ingness and ability to pay on the
part of prospective home buyers
and the willingness and ability to
lend

the

on

Probably
for

a

General
smart

of

part

Cadillac,

Motors

enough

investors.

has

everyone

1957

very

a

a

but I

officials

to

base

desire
believe
will

the

be

1957

production of Cadillacs upon the
willingness and ability of the pub-

make

to

United

the

12,

1956,




of

required
the

States

greatest nation of homeowners the
world has ever known and to fi¬
the

nance

that has brought

a

an

better

of life to millions of people.
not think we are being too

way

I

of

development

do

presumptuous in taking some
credit for the part we have played
these

In

programs.

to secure

ness

very

returns.

In

however,

buyer's

should

market,

not overlook

attractive features to inves¬

tors.

Some of the

features

(1)

loans

ment guaranteed and insured loans

provide a high degree of safety of
principal.
(2)
Loans
made
on
regular
amortization
clans
provide
in¬
creasing equities in the security
properties
and
also
provide
a

steady

vestment

(3)

of

source

able

period of time without re¬
sorting to inflationary measures.
am

afraid

allowed

our

that

some

of

I

have

that

Prepayment

trolled by

provisions

loans

be

can

us

have

forward commitments

get out of hand to the ex'ert
that bank loans for "warehousing"
to

of

con¬

the investor.

Mortgage

reasonable

loans

degree

possess

a

of ^rkAtabil-

the

in

Improved FHA Insurance

present time

us

have fought fov

improvements

secure

and

results

some

have

years

in, the

A/fpans

been

ac¬

complished. In reappraising mort¬
gage loans as investments for life
companies,
consider

it

might

be

well

to

the following changes

in
the insurance provisions of F.H.A.
Section 203 loans, all of which are

35

the old
and

and

economic law

deipand

has

intcc

?

of

si

y

d

cor

s

i

13
'

fnr tu

f"nd t0 ta^? 'Heway out of th
easy and polit

cauy expedient
situation by
fhrou«h

making credit

„?

•

°£ a™

P

dj

'

there

is no legitimate heed
operation of two huge and
separate agencies for the aamimi-

easi,

PYnani-nn

thp

maintained

consistently

th

FpH

Js

era, Reserve Board

abIe bank

Sees No Interest Rate Reductior

for the

Un)ess

m th

d

downward

trend

in

tration of government

guaranteed ness activit
j can f*
and insured loan programs. I have
crease
ln th
demand f
0 ai
been very much interested, thereand conseqUently ean foresee n
fore, in recent proposals made in reduction in int£est
rates with
Congress that the activities of toe the near future
Nevert^ele™
V A. loan program be mergedwith,
do not believe that
mQney
F H A. I only hope toat somethi g
become unavailable to borrow®
can be accomplished
in this field
seeking loans for

*

within

the

necessary

of

expense

the

operating

am

that

sure

and

6,

we

threats that
investors furnish

private

ment

keep

neeconstruction

the

activity

the

Fe

a

high level
Govern-

era!
e"

3

°

e.c'lendprogram,

r

I dislike

lieve

er

threats, and I do not be-

institunonal

investors

ou.d do business with

a

owned

trust

bear

share

our

responsibility

t

vestor

think

solve the problems caused
P11vr.^v,t

shortage

the

bv the

money.

duck,.

of

July 31,

1956,

"ess

49 United

companies owned mortgages equal
to

32.4%

of

hivher,

assets.

could

be

particularly

think

I

this

considerably

when

the

rather rapid required amortization

provisions

are

companies

must

considered.

Many

necessarily

cur-

be

required

to

porarily pull out of the market
entirely, but a reasonable "breathing spell" will cure this condition.

economy of the country and make

excellent investments at the

time'.'"

yt >■'.

I think

wj

boom-time

under

condition

therefore, strongly suspect th

j

m

we

b

haDDv

in

,

the

futm

terms

available

todav

and terms available todayConclusion
In

conclusion

attempt
tbe

to

would

I

summarize

my

like

viev

mortgage picture today:
,

^ ^ The tremendous increase
holdings of life comp
nies 1S smple proof of the willin?
the part of the

on

compani

real estate mortgag

loans to the ful?ast extent of the
financial capacities.
The de™and for mortgai
funds is' greater todav than t
available supply of funds T
situation has been cause! by
tremendous housing program
the past ten years coupled v
the huge expansion of the gener;
economy.

money

being,

may

„dea

tern-

time

panies

a

and

t3) The Federal Reserve^Boa
bas<not brought about the tight]

mortgage purchases for

the

some

j

Jan

we

com-

their

and

th

indefinitely to do bus

to purchase

States life companies representing
86% of total assets of all U. S.

percentage

le

TLme thaftt

and ,that

continue

ness

Investment Share Today
As

c

,business

wi11

wp

we

to

mortgage

of

if

1

that

of

attempting

in

mor

.

Lookjng at the picture (rom t|]
standpoint of the institutional i

funds

by others is concerned

must

inves

attracte?

can

sincerely feel, however

very
w

of

to

through

ments

n^stol

1^-ir beads, partieularlv when
Investment

pui

can

Qther f

and

mortgage funds in amounts
to

attracted

ami

markets

coming

between
will hear ex-

lmPhed

a

unless

during

particularly

and Nov.

now

reated

interest rates and terms of

.

I

Additional savings

0

un-

both agencies

weeks,

productive

that

and

future

near

taxpayers will be saved

investment judgment we can make
a
contribution
to
the
general

Features

Many of

the

market

By continuing to purchase mortgages within the limits of sound

ity under normal conditions.

to

of

view

in,

that- exists

tail

purposes.

conventional

(4)

for rein¬

funds

wisdom

savings

of

question

for these loans at the

as

Govern¬

and

be

consider¬

are

When properly made, both

conventional

not

I

discussion

phaoq

follows:

and

a

oUer

^ery

enco'praged construction;
insurance features of F.H
expansion programs that can¬
over

types

satisfactory interest
this

w°

our eager¬

have, to some extent

all

and

the fact that mortgages still

investments, how¬

financed

the

lutu iteiv

j-

ther

the

pick and choose

can

provide

least,

same

v,

and

/

-

situation.

The Board h

SImPly refused to resort to eas;
money policies,
(4) The limited availability
mortgage funds will probabt
cause
some
reduction in hom
construction for the remainder
this year and next year- This n,
essarv "breathing spell" may
healthy for the building indust
general economy in u

the

should vigorously re^
sist any temptation to take undue

hm^ run.

advantage

to correct the "ti*ht' money sir
ation Quickly without resorting
inflationary measures which W1

we

situation
efforts

of
that

to

the

"tight

exists

purchase

guaranteed

and

or

Any

government

insured

extreme discounts

moeey*'

today.

loans

to make

at

..

^5> xt is not considered possia

to be disastrous.
(6) The logical answer

prove

con-

.

problem lies in making every £
fort to cause an increase m r
very definite
rate of savings of the counir
(1) The interest rate on deben¬
may cause a further strain on the
mistake. Such practices will o-dy Reasonable
rates and terms
banking resources of the country. tures received in event oc fore¬
serve
to
create
an
unfavorable
mortgage loons will serve to cauj
This is not a plea for the banks. closure is row determined by the
public opinion in the future.
?n increase in savings and
Construction loans and "ware¬ average effective yield at which
tract a substantial portion

purposes

amounts

are

being

required

for

and periods of time that

beneficial

the

from

the

standpoint of

ventional loans at very high rates
under severe terms and con-

and

investor:

ditions,

house" loans have been sources of

the
not

profitable business to
banks, and
bankers should
very,

complain
share

of

about
the

at the present
address by Mr, Erooks before the
American Life Convention, Chicago, Oct,
'An

large portion

the funds that have been

in

which sponsor housing legislation
should consider selfish interests to
be

supplied

companies have

we

j.

and'vVtoansrequires°any'?ur:
loa.ns requires any iui

fu

at

Attractive Features of Mortgages

be

v.

.

is

it

to-we- that

or s

the boys.

say

Warehousing

and

insurance

ever, we may

that

the
with
a
will not

to

loans

payment

Insurance

Life

at
ve

time

*

a

welfare program.
I

down

economy

consider

The

tnis

to be more attractive to in¬

vestors.

agreed to supply, the necessary
com¬

5f%.

at

questionable,

Life

to the extent of

move

least.

prove

money even

that

payment

to

reduced

was

of

^gic

mortgage "factories" turn¬
ing out loans on an assembly line
basis, and last but not least, in¬
or

down

able

system,

bv

investments,

their

rity in these trying times

&XSSSH?£S^ IxpS

my associate arose and said,
"All of you guys who prefer death

our

proved

our

dircount6system" Itds^nconceiv- in Mst"g,,fascountry The
exceeded
of the1

discount

rived,

Today

mar¬

conditions that exist today; mem¬
of

-

!•

industry operating at

of funds avail¬

Prior to Sept. 20, the

,

soective services. When the Navy's

able for investment over the sup¬

Who

.

,

played the Ma¬

Corps song,

the gener,
country owes
debt of gratitude to the Feder
Reserve Board.
The
Chairrm
and members of the Board ha'
welfare ;mf

general money mar- djtion tQ exket.
By fixing the maximum ill- th t th
ripmanr,
terest rate allqv/ed under laws and
'onlv for pousinff hn+
regulations at 4V2% the way has

really

played "Wild Blue Yonder,"

Marine

rine

and

concerned with

one

the

in

time

loans,

actions,

to

,

rT'Scaa

interest

.,

.

turns

time

The time to talk of such

F. H. A.

rugged Texan, and
one of the
large

a

sent

were

,.

adjusted to meet changing condi-

pay¬

down

although this
action has been taken recently by
and

be

pened to
I

flexible

essary

Government ouf»r^n.t°M

on

some

college students in the Navy's of¬
ficer training program.
At > one
time
another officer,
who hap¬

were

be

Procure¬

Eighth Naval District,
trips to recruit

made

and

Officer

Naval

of

ment in the

ing in a very hazardous enterprise.
Certainly this is no time to talk of
recommending changes in State
laws to permit conventional loans
to

in

had

War II.

and

there is

estate

concerned.

two

gradually

a

ments from his investors is engag¬

y un¬

e

the

and

year,

himself to make loans
having covering commit¬

obligate

com-

are

1

p

the

mortgage banker who continues to

loans

with

fer

I

of invest¬

forms

other

available

housing

financed

had

^ortga^es. or (2)

folios.

too

been

recently,
choices:

comparatively

companies

stantial

auto¬
price

yield than that obtainable from

ter

many

a

(1) They could invest a very sub¬
'

because of the investor's de¬

sire for loans that

build

fort

Until
life

-Mortgage companies have had
"field day" for more than ten

years

been

made to

close for

to

expect

reasonably

cannot

we

what comparable to an experience

a

ef¬

an

public.

commitments

period of more than one year.

Reducing Down Payments

opinion

that

simply

not

desires of the

My per¬

sonal
is

and seek to find

and

range

it

and

be able to do so

finding ourselves "locked

with

in"

paid to solve

are

however,

should

we

without

' '

lie to purchase and finance
mobiles in that particular

mal¬

the

seems

and emphasizes, despite present buyers market,

the very

problems;

with any knowjedge of histoi
economics wotiUT Suggest tl
latterr course. I think that evei

son

issued.

been

have

Financial officers

general business decline, and attributes "congested" mort¬
gage market to Congress, various organizations, home builders,
mortgage companies, and institutional investors—to extent
they may be responsible—for building "too many housing units
too fast,"
and financing this construction with unrealistic
loans. Mr. Brooks offers a number of suggestions to correct
a

this situation,

chestnuts- outt o£ the fire.,-!

our

Seeking Causes and Remedies
Of Congested Mortgage Market

*

Thursday, November 8, 195

.. ,

(1976)

load

carrying

their

long-term

selling
insured.

On the other

(2) A
expense

should

place ourselves in

the

The

debentures

more

have

a

years.

allowance is provided for

new being insured.
(3) "Waste charges" are limited

to

a

maximum of $100 per

Federal

I, tor

housing

of

a

oy

Reserve Policy Approved
have no quarrel with
restrictive

Federal

period

be

one,

the present
the

realistic forec!osure

loans

hand, however, I do not feel that
we

Treasury
bonds
are
the time the loan is

maturity of 20

in these fields

time.

at

will

of

Reserve

business

activity

policies of

Board.

tremendous

In

a

expansion

and

the

at-

tendant. demand for capital funds,
must hav* either "tight
money"
or "lcose

we

inflation,"^ and

no per-

to

increase

mortgages.

step in this direction
remove

est

;

the

rates

teed

(7)

rates

and

of

inflexibility of
government guara

insured loans,

Mortgage
terms

and

The ur

should be

made,,
available toaji
loans

willmrove to be very

investments for life

satisfa^io,

companies.

The Commercial and Financial Chronicle

Number 5584...

1A4

luffie

To Eliminate Small Firms

than

/

'

By T, M.'EVANS*

*

trols should be set down, just like
in a football

recent

As

a

hen in

-

ie big

also

I

think

now,1
eveF before for .the.
^ftaHer companies.

we

to

correct

It should not be left

entirely

ways

F*tenii

De»ri»iii9tiAti

who, in many Cases,

hand Machinery

do not understand business and its

ntatives of

two

ganizations

ease

ness,

the burden

just

as we

on

smaller

busi-

eased tne burden

on individuals in the lower indome tax brackets. This Wduid

also tend to limit the growth of
the^ very largest corporations,
Under the present Federal In-

'■

Spme effective, form
The second aid the government
of control or regulation of size of should afford small business is to

Tax Law, businesses earning, more, than ,$25,090 a year
allow the new depreciation fneth- are all taxed at the rate of 52%.
Ods in the 1954 tax law to be ap- The government recOgfllied a
plied to secondhand machinery as lower rate, but at such a negwell as to new. The large corpo
ligible amount in today's econRerations can usually afford to buy omy that it is meaningless.
new machinery, but often smaller cently the Cabinet Committee on
ones cannot, and why should they small business recommended a re*

problems.

•

business is needed, and we should
try to get the best possible method
which would put the least restriction and difficulties in the

of operation of the average
__

come

_

Certificates;

the

in

First, correct the

to

that

me

in

mating /the 20%

a-

is only

applicable to new equip- $25,000, before taxes.
This is a
ment?
The- cash flow from de- ridiculously small amount for a
preciation can be much more ef- manufacturing bdsihess in t h e
fective in a very large corporation present economy. In my opinion,

of el:m-

erior

certificates

smaller-

<

o*-

.com-

a®^®^h?atipn for
Pariies.-.These .certificates made if* than in a small one, particularly
arid contains many restrictions we : possible tq depreciate new facil- one operating in only one field,
cannot look hark at the rim
.£tieS'in-Bve yeats,- and', naturally, The larger corporations have an*
of the complete freedom that ex^ if the facilities lasted longer than other
advantage:
the large
isted before the turn of the cen~ the
five years,; business woulo -amounts of money spent on returV
In those davs there werb -have
increased earnings during search, much of it at the governno income taxes
wage ahd hour
the second five years, and over mentis expense. The very largest
laws
SFC
antl-frust'.- nn^ thA-the years would have made ric corporation's earnings are more

d the repre-

most important, aid to smaller
business, and probably the most
practical a n d effective. A graduated corporate
income tax to

'

4

.:

seems

have today

union,

erely

It

industry

years.

system of government such

big
and

siness

few

.

auy

one

automotive

last

field yod
ve

agree

That brings us 10 the third, and
a

end up with one or possibly two business., Here are some steps I
large companies in each of the; think the government-should take,
major fields. We have seen this
V
*
be denied the benefits of the sum duction in tax from 30% to 20%
pattern develop very rapidly in
'Wants 20% Amortization
of the digits depreciation which on-companies earning less than
the

term

businessman

consider

to politicians

way

the

smaller business secure a
raise capital.
You wiii
that tight money is not a

io-

,

should

this.

small farmer tO the smaller businesses.

orporate soi a 1 i s m."

way

particular problem for large conn
largely without effect during' panies.
That is why the 20%
years.
. r
certificates are more necessary

been

government has not given, problem proper con¬
sideration, and offer# following program to •offset purported
reluctant etpilt? flow to small firms: (1) restore 20% certifi¬
cation of amortisation; (2) apply new tax depreciation to
second-hand machinery; and extend government subsidized
research to small companies; and (3) lower graduated income
tar. Asks ^whether anyone believe# anti-trust laws work to
benefit of average small business, and suggests both parties
extend their acceptance of the principle of aiding average or

has taken any sleps to try

one

to help

that it should not be
ieft to'lawyers and courts, which
are'entirely too slow and have
and

game,

asserts our

for a long time that
e of the quickest
ways to Solism will be through business
comin0 too big, hence my use

no

-the rules of conduct

small business financing problem must
be met to preserve free enterprise economy and forestall
private corporate socialism in next five to. 10 years. Rejecting
jbe government's concept of a small business, Mr. Evans
Industrialist charges

j have felt

oil

grounds the companies would be

•' ''

\V.

President, H. K. Porter Company, Inc. *;

25%- of the market,

13

trie for equity Triopey is not open to nesses.
smaller companies.
I think ail intoo big. In other, words, it is my vestment*
people, on consideration, Lower Graduated Small Business
feeling that definite rules or con- would agree tnat tnis is true. bu.
Tax

w

-

(1977)

as

we-

which is comDlicated

■

_

companies doing something in the
neighborhood of $25 million a
year, and presumably earning less

than $2 Vz million; should be taxed
at a lower rate than the very large
corporations. The methods or
steps are something that Congress
and businessmen should Work 04t.

in. the;, government's stabilized by operating various di- It shouldn't be-too difficult/
a table and
that we are all too well acquainted revenue.
BV-continuing, the cer- visions as compared with a comj personally think that all inttle the fate,
with. We recognize that wase.arid Uficates.-it Wpuld make financing pany
operating in one -field, come taxes, including corpbrate
hundreds
hours,. Social Security and erad- more feasible for. smaller com- Therefore, a large^ corporation can taxes are too high 4t present, iand1. M. Evans
f thousands
uated individual income taxes are Pail^es which do not have ready appropriate a definite amount of the first step in reduction should
employees
a
form
of helping pedole
take, access, for instance, to long-term percentage of ^ales for research be
for the smaller companies,
d the future of their families, hare of themselves who are less insurance money.
The big insur- and m some of the very largest tnis Naturally if it was desired to cohd can determine prices that all' able to do so than others
Regard-ahce companiesr are not in., a po- runs as much as 6% of sales* tirrue the same government revto will pay lor Important prod- less of
political party, I'thipk we
1 i°l?'enue' ,*a «ra.d^t??,
down

sit

n

many

ts, you have

situation which

a

extremely dangerous,

One way
combat this is by helping to
rengthen smaller businesses.

all recognize

On

as

raed,

there

small business is

ccn-

rt,.

^

industrial* loans, and many of the; must remember
smaller companies do not know; on. research - is

measures
.

;
Both Political

'

isputes Government's Definition
As far

that, such

are'here to stay.

-

'

•

deduction

other government controls

their

/..*•••

,

.

,

,

rich?L?hLn°Spftl ^rmtrc°

many

inrnme

...

rinancinv,

par-

cularly today with the tighteng oi money,

it presents

more of.
problem for smaller businesses

an

at

nave

any time during the years
been in busiriess. ; While'it

naturally
g

problem

a

confront-

our

e^y
iter

gradually

assification
a

of

getting into

ss

for which

nat easier,

smaller

business

the medium-si.ei

financing is

ion

m

Ranch, in Texas, of which- we
have all heard."1 It covers many

Certainly
they need help,
ment.

*

.■

-

bffer

The

NEW

to

sell

offering

is

or a

solicitation of an offer to buy these securities.

made only by prospectus.

ISSUE

.

Extend

Same

Principle

68,323 Shares

Small

to

Business

"

new capital
M.ii t u a 1

1"

S

'

'

'

Soutiiwiesterii Investment

some man-

5y4% Cumulative, $20.00 Par Value

••

times

"onomv

Ppqcu,'

o. r

.size.

■iiit-x.

J

It see].

Sinking Fund Preferred Stock

vrho is gradually
„

.

Without Small

n

being fjreedout
of business "by the giant ecrporations, and by soma of the unSair

With warrants to
.

ess

advantages which" these corpora*
government tions* have under oar present
the f;
pr.°?ei> consideraaon economy. For example, does ariyallp r ,
ancm3 problems of one really believe that the antious'ness. I think that if trust laws-today work to the benec°nomic system is to con- eflt of the averaSs s:Tiail riusine.s?

are

n"e',We roust

have smaller
developin£r-_ntw„,-c~
toping—otherw'so

tition will h«
"u°n
extfive tn m
iu

v

ccm-

"

llminated

years, and

^ addre8s

busi-

bv

Mi-

Oct. 31,

».-

automobile

company can
caoture 55-6G% of the auiomob le
-

market

will

u

t

smaller

x-4.

co.T.pstit.on
impossible for the

and

in the practically

we

{''wtat.™
19S6.

*An

make

companies.

the government tries to
break UP « Proposed merger between two steel companies or two




-

Kansas City. Missouri

Dewar, Rcbzriscn &
San Antonio, Texas

Pancoast
*

October 18. 1956

increase each two ye^rs..
The First. Tr»is!

Ci.mpa;iy cf LIncn!n

Lincoln, Nebraska
Eeettchcr and

& Co.

On the other

hand»

exercisable at prices which

Sstn'ia^r, P»?mct & Hickman, Inc.
- Waco, Texas

Topeka, Kansas

'

non-de^ach^e, expire on Noven»her 3f>, 1965 anl

"Dallas, Texas

Bescrcst, Caie

^r);

purchase 68,323 shares of. commcn.siock

Such warrants are

ooteivJme

xcm

.

——

very- largest- ner.to the smaller businesses. Tne
les nf °hS ln.^s country..have iree* enterprise system is largely
abonfa^T-OX"na^e^ ^ billidnv>"based,-onfcthe small businessman,

e

uons.

Roy L Pitt Joins
Aliyn & Co.

This advertisement is not an

thinks

nobody

nsidei-Um *not iar'^e w^en yod ciple should apply in
rporatt

^ apply to c6rpora-

^

$1(7* to* $100, or more, millions,
merely at. higher interest rate?,
Lar^e,*rrUtionally-known concerns
can also-"selFaSditidnal stock. One
of the principal reasons they can,
in spite
of the present tight
money market, is the fact that in
this day and age where individuals are taxed at such high ^rates,

However, both; .political! parties
realize that the average or small
r^laP3 iriu ajatsifi-: farmer does need help. Therefore,
sound: arbitrary, but it seems tome that this same prin-

e are

^

some-

it is still not

pave. access to
nds <ft1Sl°S

^

are doing most of the defense
business and in many cases it runs
10-15% of their sales, and some
A. G,
even more, the profits from this
defense business are, of course,
CHICAGO, 111.—Roy A. Pitt, Jr.,
provided by the government. It
could well be argued that where is now associated with the munia large company uses 6% of its cipal bond department of A, C.
sales for research, on a^ount e Ally
d company, Incorporated,
the principal capital for iiWest- defense business a good portion of £uyn an
[ y, ^ p
extremely prosperous—those with ments comes from pension trusts, that is completely suosidized
y
'
fine land, excellent equipment, trusi
companies,
and mutual the government. Id™1."1®®"'® Pitt previously was with Scherck
successful management.
I
can funds, all of which are profes- argue that research shou^ d
Richter Company, St. Louis, and
think, for example, and perhaps sional managers handling other undertaken, since e
y
- earlier with Goldman, Sachs &
it is an extreme example, of one people's money.
Naturally, they rives benefit from it, but that the
that can be considered: the King cannot risk buying some small un- smaller companies do
y

.

om

'

The very large and giant corWhen you add to this the fact
porationsr can still borrow from that the very large corporations

thousands of acres and, in fact,
has the finest herds of cattle, oil
the wells, adequate capital and eq_ip-

leaving

five-year government-subsidized research it appiying to individuals—so why

^ part

loanS' f°r

company and probably
company in the country,
is

;'in the ductible for income tax purposes, nized the principle that "those
companies In other words, the larger a cor- individuals earning the
most
banks are poration is today the more the m0ney are best able to pay" as

short-term

limited" to

^tuaufcapitaUsfsTpS

prob- who are
ins, but one of the most impor- ating their own businesses.
At
nt is
financing.
By "smaller least, both. political parties tins
inesses,' incidentally,- T do not fall have expressed concern over
ean
the standard
government the- plight of the farmers — alassification of those earning les3
though it may be' that the elecan
$25,003 a year, which I think tion lias brought out that concern,
u will all
agree in this economy Both
parties have had price supa ridiculous
figure—I mean, in- ports, soil banks, etc., to ta*e
ead, businesses having less than care of the
farmer, or at least to
5 million a
year in sales, and help them take care of their busirning, lets say, less than $2V2 nesses.
However, that doesn't
"ion a year before
provision mean that some farmers are not
are

-

concerns

larger cities.
Small
going to commercial

Aid

v--

way

th'ese. insurance

Parties Agree

„

the money spent *c0me tax wriuld require increased;
paid for 52% by rateS on the- largest corporations,
to the main offices of the government because it is de- gut our government has recog-

Company

Denver. Colorado

Austin, Hart & Par/Isi.
San Antonio. Texas

,

14

The Commercial and Financial Chronicle...

(1978)

Thursday, November 8, 1956

/

nized

LETTER TO THE EDITOR:

Views Elliott Bell's

Proposal

resolutions.
Sincerely

•*

the wrong

Vice-President, The Chase Manhattan Bank

j

:

,

,

Noting pension trust annual contributions have
trebled

.

foot."

are adaptable to mortgage investments.
On the assumption that half of present pension funds' compo¬
sition

Broadway, New York, nationwide
brokerage firm with

of

investment

Editor, Commercial and Financial
Chronicle:
I wonder
readers

v

how

concerned

many

listeners of Mr. Elliott

or

V. Bell's speech before the Ameri¬

Bankers

can

Association

Conven¬

tion, published in the Chronicle
Nov.1, paid
terest

to

stand

advanced

the

community
In

that

curious,

for

Mr.

Bell

Fed's

to propose

on
a

sunra

na¬

council, comprising top Ad¬

ministration
the

incon-

suggesting any
independ-

the

establishment of

tional

banking

consideration.

and then went

ence,

ambivalent

the

its

denied

lessening of
the

to

address

gruently

than casual in¬

more

economic

Chairman

the

of

heads

and

Federal Re¬

(2)

Noting

countries

Is it not proper,
to

determine

and,

thus

One looks in vain for

any

on¬

forms

praise,

who

better,

conclusion?

is

before

If

of

out

the

this

the

a

have

ropeans

of

chronic

business

same time. mo**e effiT
cient production in relatively com
*

for unified

concern

istration

it first

Fed mi^ht do to uPset the Administration's

annle
apple

cart?
cart?

Actually.
Actually,

to

logically

prevent

ex¬

top policy makers in the Adminis¬
tration.

wJwstratipn nolicv.

the

of

course

the

if

Fed

the

had

posed Council.
the

rich

Bell

field

of

Reserve

pro¬

through

roam

incorrect

past

and

analyze

or,

the

at

the

predictions

policy decisions;
weapons

in

Nor, for that mat¬

ter, does Mr.
Federal

today

economy

been

disposal

Treasury to offset Federal

the

of

the

Reserve

actions, in order

for

tution

case

his

that

so

Reserve

pendent

is

not

set by the Ad¬
ministration. This, in my
opinion,
is
an
interesting anomaly, for,
with one hand, it presents a
super¬
ficially acceptable resolvable so.

lefmn, and, with
informs

the

the

other hand,

no

In fact Mr:
sue

honestly

marks,

Bell

reveals the is¬

later

when

in

on

his

present

either

the

Mr.

Bell

former.

should
tics

obviously

Thus,

conclude

if

that

desires

true,

the

involved

applied

new

presage

a

whenever

per

the

as

Federal

same

man-'

judiciary,

to

the public's will.)

(The

joined

now

prescription

digest

to

make

these

for

of

central bank

to

City. members

medium

a

or

political

altered

formation

A. G.

much

,

Bolin,

more

than

orpdit

sector

is

no

o

J

.

C

Naas

Allvn

&

has

been

of *John

to

&

Seventh

preservation of dual

derstanding of the totally dissimi¬
functions

of

the

system,

sible

Federal

standby .selective
.

Re¬

Iron,

a

wou^d

losing

hyper-inflationary
be

more

crucial

apt

votes

to

period
think of

than

to

act

the

expert doctor who more
likely would be expected to pre
.,

scribe, if rieed

uAywuvtu

be, distasteful

medicine?




view.

a

is

drastic

a

VIEW,

and
me,
est

in

is

a

SAN

-

V^o.

-

hanl-orc

bankers

--

economic

should

engaging in

tiesu business from
Bandera
name

B.

of

Road

have

-

are

liquidity (that
invest¬

convert

for

at

least

a

will

that

one-

funded

even

larger.

\

$

What Pension

Coiild

Funds

Reasonably Furnish
.

It would

geration

obviously be

to

the

sion

in

to

exag¬

an

aonly

the 15% -25%
billion presently ac-

$15

and

the

$2

contributions.

trusts

will

not

billion of
Some

•

pen¬

interested

be

mortgage investments because

of the small-size of the trust, the

personalities involved, the nature
of ' the
employers'
business or
other factors including the iden¬
tity, experience and" location of
the trustee.

Some trustees are

ex-

a

^

a

ject to'income taxes either

business

Fifth.

on

Trust Distribution

d

x

d

l

OAKLAND, Calif.
Pont

"brancn
■branch

&

Office
office

Co.
at

—

trustees
a

seem

trust should

has

4lb
416

N. Alexander.

8

onened

Fifteenth

,,ndpr the management

nf

or

$150 million,

resented by

are

trusts
presently rep-

mortgage investments,

Obstacles to Mortgage
There

must be

situation

Purchases
for this

reasons

limitation on
.trustees' investment is not one of
but

legal

—0—

-

common might well include some lion
stocks. The fixed income them. There need be no restricas

recent

and, ,at

years

present,
over
32%.

to

slightly
thinking on this point india
reasonable'portion of

cates that

a pension ,trust for

of

law

on

the

tion is. a matter solely for the
parties involved. The first important

reason

is that the net

interest

return, has not always been cornpetitive. with other forms of investment.

emphasized
investwithout being

It must be

that the ability to sell an

ment

mortgage

matter

a

types of investments so the selec-

promptly,

vjstoente might be 15% to 25% subjected , to heavy expense *
t?t?l<?s!ets,„aJ?d the fixed part °f ,the
hy the mon
be about 25% to 40% of h.'=
gage interest rate should exceeu
income portion of the portfolio.,

Potentially,
substantial

Francis I

In contrast to these fig-

1% of the assets of pension

portion

Some

from

$1V2 billion of the

it: is estimated that less than

ures>

-Typical

in

AveB~

excess of

realized capital gains, future.

•

mortgage investments. It is reported that the mortgage holdings
1819-of, life .insurance companies have
firm ranged from 15% to 40% of assets

the

be in

accumulated .funds plus an addiin-'tional $200 million annually in the

securi-

1NSW dll r or»t lSr?.!7Ch

A1

and

~ jn preferred stocks and 25-35% in

vi '* '
Upsns

offices at

under

securities

j

AT

outgo;

at this time might be
60-65% in
at .fixed income
investments—10-15%

York Citv, under the firm name of
B. Ray Robbins Company

du

equal the

pension trust is not sub-

a

se-

a

Beatrice Rav Robbins is engag-

in

recog-

moneys

have a'diversified
portfolio of in¬
A typical distribution

Ray Robbing Opens

ot1^ ^

a
-

the

vestments.

of C. D.. Crabtree & Co

ine in

system.

by

It is also probable

tions plus the:income from invest- tent of 20%, the investment would

amount

proposal to take the long-''

altered

to

^ANTONIO, Texas —C. D.

Crabtree is

This, to

step yet in the direction of

greatly
Thf.
The

a

economy

economic growth.

to

cash

to believe that such

Calif.

„

eontrols

change

new

Most professional

Opens

Robert S, Fish is conducting

short, I believe Mr. Bell

sounding

power

into

™

control

pnyate banking ooint

In

fhe

curities business from offices
1675 Springer-Road.' #

pertris-

credit
V

the

Co., come or on

(Special to The Financial Chronicle)

MOUNTAIN

bank-

a^ootion

banking's position in the

pic-

sound

.

of

banking

decentralization, and

serve and

the Treasury? For is it
not conceivable that such a coun¬
cil in the face of an
election dur¬

retention

maximum

dedicated

real need" for

no

ments

Street.

R. S. Fish

become just as much an
.a". qnestiom rai-d

about

*
*•''

Gusta

added

Mr

as*

is

employees if the pension
is contributory; (4) that there

ments'

.

h»ri°ve

monetization.- would.>

—

Kinnard

G.

El. r>t
Cn Crabtree
1.
resut,

is-

covered

that the percentage of non-union
employees who are not covered is

principal
there is in an es¬

was

Sdtrfh

p-n-3

ouestionc raised to-'av to.Mr. Bur-,
gess
about
length^nim* »n-i ri-

float

pian

is

i
'/s v
V V j i■/?
J. G. Kmnard Adds

keot

and

fund

not

are

are

members

-ed it is believed that about

personal trust, because the

,

there

between

as

from the

Allp & Go.

MINNEAPOLIS, Minn

he

be unable to defend itself bv tak¬

action,

or

time,

of-mortgages, while others do not
However, if even 50% of the
present
funds
were
to
utilize
mortgage investments to the ex-

fro"-—<-Htit is ma**<* PoT>t
of—fi^oal activities, then it. might
ooDOsing

perma-

even

fund will exceed the outgo for
formerly in the many years after inception and
trading department of the local when the theoretical point of full
office of Harris, Upham & Co.
funding is reached, the coutribu-

C.

He

^nar^fe

ing,

a

year-

high rate.

same

million /union

18

pension plans.

income; (3) that

Company
Incorporated, 1016 Baltimore Ave-

bankers

lon?°r

of

present

10

continue

perienced in and have the facilities for the selection and servicing

,

rU-i *"> g

own

major portion of the fund), as the
contributions each year to the

A.

staff

monev,

type

about

half

is

received periodically, at least an¬
nually, in the form of contributionsJN>m. the employer and also

CITY, Mo.—Frank E.
has become associated

Jr.

vvith

133

the

Bond

(Special to The Financial Chronicle)

would not approve.
Or>ce

Municipal

KANSAS

fis-

would

other

the

At

Its basic character-

viewpoint; (2) that there is

income,

of the- entire

Frank E. Bolin Joins

Last, but r»r»t l^a^t. it ief
likely that the pptnrp pf
capital

different

annual

calism.

and

is

cumulated

bu+ vmvm

of

investment of

though not at the

in

see.

prp^a

e

will

that it

(1)

are

Th

s.

the last

in

growth

the

the

their

funds paid to life in-

trebled

that

Exchange;- an-purpose of paying benefits and
that Stanley' J. therefore each beneficiary has the
Spodaryk is now ^associated with same rights in both principal and

hue.

warehouse receipts
co^e

of

t

Stock

firm

for

bargaining-"agreements.* They d
riot include

today

and

gelf-h'mjidating hills

unions

an(j not for their mem
by both under collectiv

or

nounced

of

monev, definitely no logger
cm1-* hone to rpnresent itself
as

;

'

any

fund.

or

tate

Wertheim & Co., 120 Broadway,

nationali¬
us

of

and

bankers' .ju^gme^t is apt
succumb to c^t-al dictation:

to

lease-

arrange-

trust fund

that

distinction

no

be

results

1

*

-

-

range
T.'-~

York

by

or

bers,

and there is good reason to believe

is

and for radio programs sponsored. nent fund and therefore
should be
by E. F. Hutton & Company
invested primarily from a long-

to .fa+Vorn:

the

•

pension

istics

Mr.

should not

bankers

fhwe

sation is soread out for

observations:
un¬

:

daily

interpretation trust

York

ers,

\employees

than

of

m e n

Gardner

B.

ksmonh
'•

for the firm's private.wire system

New

These
figures reflect only the funds o"
pension trusts created by employ

include

market

New

an

pres

billion.

to
welfare
plans which provide
health, accident, or death benefits,
Incidentally, the annual contributions to pension' trusts have more

for

back

from

and

$2

throughout to

Ex¬

firm's

a

exceed

and

sake

brevity

a

write

ently

surance

the

and

will

that the annual contributions

"mart-

sense

analyst

Private

ing

foregoing I should

the

o n-

The

held in pension trusts

are now

intended

Analyst

Department.

eonseou^TPs

pa~ticuTarlv

"independent

(1.) How fami'iar is Mr. Bell's

like

appointment

reasonably sub¬

one' Hrement of thedebt.

bloodless,

meaning to be

In view of the

ing

not

seman¬

is used in reference to
the Federal

lar

is

ject, in somewhat the

Reserve.
like

has

•

spineless

<

of

membership

procedure

re¬

he

the
Treasury must
dominate the Fed, or the Fed must
dominate the Treasury.
The re¬
marks made to the bankers indi¬
cate

Ad-

quasi-indiCongress, it

Roche

i

n s

a

solved.

were

companies, the funds o
-gage" is used -Federal, State or local government
in a
broad pension plans," or funds paid i

Investment Research Department.
He will serve as a stock market

'

more
candidly,
though not quite accurately, states

that

a

F.

Pe

Funds."
4erm

change, has announced that John

•

Fed's

Chairman, he
longer do anything at all
of any
significance witho"t the
approval of the Administration.
can

offset

as

that the Fed. under

say

European

tradictory to that

of

blow, eliminate the

one

to

the F^eral Reserve would retain

con¬

'of

an

York Stock

Source

for Investment

1

New

dp-

"Mort-

tential-

-

t iv e'

E.
F. Hutton
&
Company, 61
Broadway, /New York City, mem-

of the

Mortgage

gages—Poten-

For E. F. Mutton & Co.
bers

of

been

problem of the central bank.' (This

proposal.

position to pursue policies

all

And sine3 the

is

creature

wo")d, at

can

on

area

opportunity to

Federal

difficult

a

Executive

Legislative

matters—an

Ipstead, one is" assured that de¬
spite the supra-economic council,
complete independence within its
sphere and. yet, would not be in

the

the

-conorric

to present a more

leasonable

u

if these two problems

though the tiHe-bad

as

1.

Roche Market

casting glances at'what the

tential

been

c

cording to

house

clean

much, if not more, actual and po¬

have

proached

of that"

e

Concludes these funds could become

source

Money," the- subject has been

3 ;S Af ^

x

and problem of "doing business" in

While the title is "Pension Tru-t:

committee ac^

-

announcement Nov.

to the-Admin¬

propose

that

trative Assistant Hauge and other

might

v

meeting business cycle
changes, then would it not be ad¬

though,

justifiably

•

potential^ Source

in

dominate

might

Henry U. Harris

{

Treasury Humphrey, Under Sec¬
retary Burgess, Economic Council
bead Burns, Economic Adminis¬

what

e

(3):■ If the problem, presented in

address, is

continuing supply

organization's

parable situations?

dictory policies, Mr. Bell ought to
recommend
altering our Consti¬

One

i

man

have, at the

the

non-domiciled states.

elected Chair¬

and

competitive interest return and

1

As-

compared to less

mortgages,

in such investments. Mr. Gard-

d

other

and

phenomena,

1S56 economy, over the formidable
opposition of the Secretary of the

speculate

Memorial

excess

attributes this gap to non

ner

of. Fed¬

an

now

Chair¬

-

for

source

a

added costs involved,

sociate^. Inc.,

inflation,

as

$159 million

or

3

the problem

licked

cycle

3 n

!

>

1%,

x-

eral.Hall

case,

ecutive and/or legislative contra¬

the

change, "
man

making

is

E

Vice

of

direction

Stock

step

action,

foretelling

of the New

available

than

members

per¬

which

'

comprise 20% mortea^es, oostulates

to

were

$1V& billion accumulated and $200 million annually would

be

coast

to

and

then may one ask whether the Eu¬

before

n
n/Tv
Roiiv rcm^rirc
in Mr. Bell's remarks, of the Fed's
most recent rediscount

coast

instead, to use the
methodology

ascertain

visable to

full larder of

offices

in¬

an

methods of scientific

£.bould

a

European

have abandoned

action

during these
coming long winter nights.

all

dependent central bank, Mr. Bell
asserts we .are on the wrong -foot.'

serve,
to carry out coordinated
national economic policies.
This
encourage
searchful thought

that

decade and significant areas still are to be
Chase Manhattan executive finds basic pension

fund's characteristics

0

Henry U. Harris, senior partner
Harris,
Upham
&
Co.;
120

than

more

in past

covered,

Federal Hail Comm.
of

Money Source

By ESMOND B. GARDNER*

College, New York City

Harris Chairman of

^

Economic Council would end

^

As Mortgage

of Economics
Pace

Nov. 5, 1956

and publisher Bell to the ABA regarding creation of National
Federal Reserve independence,
and greatly alter our present economic system—particularly
private banking's role in the economy. Writer sees no gain in
emulating Western European practices and denies "we are on

/

BROWN

Adjunct Assistant Professor

Economist Brown's letter concludes proposal made by editor

!

Pension Trust Possibilities

yours,

SIDNEY

As Threat to Federal Reserve
•

convention-

in .their

this

concluding

this

amounts

is estimated

that

could

over

$15

the comparative rate on

mean

of money.

bonds.

corporat

There is good reason

for

seek the

hignes^

bLLon -net yield consistent with

reason-

It

pension

fund to

a

St
St.

rhariee

*An"
An

address
aaaress

Mr.
Mr.

by

Gardner
liardner

before

able Safety, 3S an increase in
'
either wiU result in a substani^
i
„rl
Continued on naae 3%
,

,be 43rd Ap-nua! c

S'Bankirs
cage,

Ascoo.Vt

Oct. 9,

1936,

nvon
on

cf

icn of m rtr^-a
America,

Chi-

nn

page

Number 5584

184

e

The Commercial and Financial

...

Chronicle

money as the years pass by, and
.secondly, looking forward to the

Opportunities in the

Career

(1979)

future

with

dence

your

i

want to

on

try

F.

By ROBERT

SEEBECK

York

the

for that

esident, Investment Association
Of New

of

.

that

year was

pected

the

average

1947

nel is

ne

people

going to

tell

on

this

uying d

the

e-

artment of

firm,

s

one

six

depart¬

each

Iks

to

were

29

of

gone

you

to 32

years;

ovJrt

were

enthusiastic
...

.

out his

are

.

subject. We

are

-•

ino

going

as. a career, and-f'

relate.the progress that

person could make in our
ss to what
he

busL

$15,060. V

s

ii<JLbasiness iust as . we
c;
future of the counflnvr!Wubelieve there are s°
y inks

v

between the two."

We

believe

lai since

our

business is very

it

serves to
bring to.er the demands for funds by
sinessand government with the

,ply of funds,

ated

tergely

and

other

funds;-

y

;am

0,

and

in anticipation

iU8,eat demands

placed

"ars

that

°u

panehsts, I

ve
vevm,"
you

wq

of

think

lhe

in"

would like to
wuuiu xme 10
very brief background

a

he
sc
SS

Salary iJ1Llure
picture
n,l,s.L ^
.....

* ttunk will

rest to

oufbus"-

in our b
in
•

be of

in-

ShSS7''",1851'and
„P;'Tthe ^vestment As-

ciatinn

-c

of

research.*

pure

rT

-

,

I

age

V lllc luvt;simeni as-

believe

the

0st'interestSfWere as^ed» but
rrent

salir

'Ved

bv

ered

th

Ik

distribution

giving
to

op-

f0r

home

re-

Part of

nb

good deal

the

flnH

morp

This

presents

real

of

new

was

.banking

firm, and the/i„
why 1 think
buying de¬
partment

;

oppor-

is

0f many

be

3

I

,.1~"Jr-

to

ufu

Pmnha^i^

work

if he

J J

believes'-in

op-

'Work in my organization in
i
be
divided basically
,pty tbree categories. The first is
b;

g.

can

"

u

ot:ilLve53.^u

-

the

believe

career

portunities in this work are today.

.

has an opportunity to put his own
monev

ap¬

and

what

finally,

given securities and here

v^y real wortanity he
t°
because

is

and

pealing,

concerning. the merits

wayof thinking,

my

should

work

to

a

formation

in-

"vestment

good security analyst has
ayailable to him first-hand in-

crass

buying

major

a

hew

atmroach

he

department cf

it.

this

work

to

the

in

to-

analyst. There

about

finr-r

n-,0

oc

i-non

where we are acting as the man-

wh^ he saya-that is very im-... ^ underwriter or agent for
I"* r.ortan ;..Yery..0le.?. y°"
k"" the company. The second is where

SvsraThfis^kniwn nowCUwas 'the ^
is^knov/n now, was
to work,
anmysr asriie

monev

.

.

if

few

a

,

analvst

en¬

counter
went

securities,

distribution

the

for

doubt

sales,

.

century

mnrf,

career

expect to

Bejond tins new approach to

'

until

securitv

the

BevonH

t'.
.

of

might

one

and abroad, addressing
institutions, in order to.

issues.

will

I

w'picuL

various

infustnalicompanies,
also appears
to be-

re^^ch-

discuss

to

^ay to travel extensively both at

in Ubs

w

like

noum oe
and he should be

,

„.

,.

a

,.

.

.

very^omfort-v'
,,c0

are

.

jggyjg

^participant in
hv

managed

f^m,

in

and

fkm,

a

other
other
category

some

third

the

security

onrr,P

by

t

seems: that hiS

wife

was

wrive"^?^dedsio^

J^he

a}-charge-account wito

only method of our econproper type of security to
then averaging $5,500 a year; in one of the large department stores the to, some degree in alleviating
this
jssue
based
on
their projected
1951 they had- been making; -as ;"-in town and in order to
open the
°my, I believe, is to attempt to cash 'flow statements, based on
we said oefore,:$4,500/ Tney exnctheir exPansion Plans> based on
pected to earn $13,000 in Tfive-^account she had to give her hussaid
iT
Picture as but I We
band s
position which she
years, and almost" $22,000
after*^band'sLnositicn which she .said could go on on that, possibledon t their desire^^ for capital structure
.mplification," or whatever their
being in the/business for 10 years. /was a statistician. Well, the man- believe anybody comes down here
otb(Tr requirements may be; and
"The middle group, the 29 to 32- ager looked in bewilderment and to Wall Street—without the ex- |.ben ^acb a decision as to whethyear-olds, were averaging in 1954
said, * "Will -you spell that?" She Pressidea ofmakmgm oney. And er mese securities will be sold
$8,900 a year compared to the
sncllcH it and the manaeer looked
IU'y,way
thinking the best publicly or placed privately and
$7,209, that their, age group were -spelled it and tne manager looked method or approach to this goal ; h t th
ba„ic terms of the se¬
-

receiving

in

1951.

These

people

at

hoped to make $21,000 after five
more

in

years

I

the business and

35 years of age were earnings on
average $11,500 in-1954 and

about

P^up, the

secondly

we

l y anticipated that
be
earning in

three,

which a sne^k^r is more
frowned on than giving statistics

to

me

one

as

f

today

of the

figures

on

would

called,
from

is

recog-

most

impor-

he

as

gather

Moody's

was

facts

the

Standard

or

and

Poor's

hnvin?

and

present

department

well-defined trend

to

a

&

them
or

the

to

.

,

in

,

department

accounts

the

flotation

man

ment
a

is
is

called
canea

on

given

studies

of

issues

new

bjs fjieid
very
,■

upon

price,

based

and
ana

income
mcuiue

his
only

figures
nguicb

and

the

of these

general

eco-

if .the

is

the

very

is to be placed

security

privately, we work with the com¬
in developing a memorandum

busisecurity

their

describes

which

ness

and the terms of the

and

g0

wLb

'them to the major
lending institutions, such

private
as-

the

with
Jf

and

funds,
to
discuss
the
placement and negotiate

pension

foundation of anv business todav,

companies

insurance

private

research

these
the

institutions

security

is

them

for

to

be

sold

to myu T^y+°f
be

f publicly, we work with the comSe sl^cces;" party in developing a registration
banker °r broker. It seems to sfatement along with company
practice

common

research

to

raid the

department tcday.

If

a

capable enough, knows his

upon

but also the management

companies

be

!!?du|.try a^d knows him business,
his mt0 the
the firm mlght put

analysis of not

balance iheet
oaiance sneer

can

judgjuug

to pass
to

the value of securities at

and

soecialty. This

or

rewarding.

Briefly,

f

of

his

of

research

the

Today

securities.

•

.

order to assist

because

knowledge of certain industries in

svndi-

the

,

.

m

often

is

man

called upon to develop new busi-

■

cat

research

cessful

will be.

curities

funds to work. In this resoect

J, bel^evf the research man is in
Position to accomplish
this. Among other things the sue-

toom-Tt

the team. It
research man,

statistician,

the

is to understand how to put your
own

important is the very

first of all actually making more




analyst

or

is it?

.

today although

used to be that the

study; the one taken

in 1954, some 200 replies were re-

clear

true

not

,

'

In the last

seems

it."

true a few years ago. The
true a few vears aso The

was
was

,

33^ to S^vear :groun,

oJf for

morning

That's

tant key

$11,500 in 54; in 51
said that they were rarnin8

$9,000.

said, "Well, what
heard-of

nized

wore earning

v'e

it and
never

security

in fwe more years 'and
$33,000 in 10 years. This

+?S'* We asked the like this in a talk. The figures I
Was be'nS re- gave you I don't think are so imneople who an- portant in themselves. What
'

ey Woul i
m

the

mon

ttesearcn, -among. otner tnings.

a

would

I

3?~

^ ^^traan\^e/°ther:'a!3!e t0rpr0vld?

,

us

that

-

Billon, Read & Co., Inc., N. Y. City

their

Tbat is> in the underwriting end
jbe business. It is not uncom-

caHed^the Age of Reason and 1-

'VyV-,

otu?ew York conducted ceived and 97% of those answeronymn
lch was completed ing expected to stay -in the busideterm
' of its membership ness indefinitely.
many thhf amon§ other things
Now, there are very few things
iv,-

in

preju-

man;

*.
18th

..

..Wall street
was then

Poll

ere thrpp

that

trinities

it in future, they looked forward to- making

vidua?r,Staii-ing with
idua

am

a

NELSON SCHAENEN, JK,

By

Now, we - can get more direct -day an associate was telling me a able estate for himself over, a*-aje
CTreat number of unrelated
here, because the-1954;studyr'alsostory .ab'out his experience in re-: Period" °f yearsbut extremely interesting projects.
broke"'down -the* -replies.? iftt-e*- thesearch when'he first^ came to* Wall ; - Today,c we are <• experiencing a
• As a managing underwriter, we
same
three- age
groups.
The'

$21,000
.

about

departments
typical investment bankbrokerage firm.- To my

duties still call for

*

...

money¬

and

^

,Department, I feel
always be a research
rry

the

among

unlimited.

opportunities in buying work by

assist, in

believe that this busi-" ^most $30,000 within 10 years,
needs
mit
young men to build The oldest group, those from 33 to .it

p

*

themselves

thcit

,

concen-

by millions of small savers
commercial and
savings banks,
example, life insurance com-

3

are

for

necessary

work, and

our

*

search; department.
Although * no
longer wit a our firm s Research

y,.

three

are

opportunities

proach to selling because it is be¬
coming more and more important

,

and I

there

security

a

profession—

enthusiasm, optimism and conThe young man who can
think for himself in conjunction
with these ingredients, I believe
Cari go far in this field and hii

accounts is tremendous today.
research saieSrperi, if eftec-

tvnVQi

n

r,

or

might do, per-->
in
industry, but we do all youngest group, that is the 25 to •Street, It
believe strongly in the fu^
28-year-old group, in 1954 were opening

PS,

hear

_

this

briefly outlining the type of work

opportunities

.%-

tT

.

^anybody else,
cant

to

of

for

profession today. 1 be-

a

ingredients to

firm.

^ome-.ofrthe greatest
exist within the

earning $9,000; The over-all

was

Potential

year or next

portunities

which would have been this year,

you;or >1956,

and it is

analyst working in the field of
institutional and large individual

study

new

glad to provide

thinking

anticipated income in fiveyears;

7-:

-

not try-

g to sell our business to:.

the

be

career

•

wifhin

earning $7,200,,"and the last group.
Kuoert F. beeoecK

.I find it difficult to contain my

tech-

a

on

in

enthusiasm

salesman.

a

tive, rank high

certain

1950

e

going to
tice that he

presented

ing

is becoming more and more

man

and from 33 to 35 ?.don't helieve it would be too

The middle group

1947.

When

will

we

You

ex-

three

be

you are, you are

nical basis. Therefore the research

the

income.

Kidder, Peabody & Co., N. Y. City

undecided-about remain-

into

to

to

makers

-

you

adds

em-

copies.

study,"in which only

down

all

our membership to renew
figures that I have
just

over.

year

years.. The first, group .were then
earning
an 1 average - of.
about
$4,500 as compared with $2,900 in

.

to

fully expect to take another

poll of

from 25 to 28 years; from

groups:

people

am sure

.completed..,

was

1951

was-broken

syndicate,
ese

over-all

these

r-ing in the business and only three
?said they were going to leave—

ed, one in
les, and one
s

poll

The

the muniqal

viction.

We

in the busi¬
six people had decided
Jhat they would leave, at the tiijie

is in the

e

is

total

and

ness,

ing

with

has

undecided about staying

is

person

do

*

was

research,

to

research staff and the information

insur-

system

paying bonuses
plpyees," which also

about

you

this

lias

of

study

income- in

what

Some of the best ideas \
got were conceived away
a train, playbridge or no matter where

ever

from the office. On

ours.

neve

pen-

insurance,

accident

ness

$6,673, and the expected a ker¬
income in 1960 was $16,732.
e
opportunities- that'.her feels -Of 53 answers 40 people expected
ist in his end of the business, to remain in the business; lz were
Each of the five

But

ment

income

$2,921.-The

night.

of

source
as

research?

By DAVID LYNCH

average

we

is a sophisticated investor. Most
large institutions have their own

life

group

health and

earning in 10 years.
results

important

an

business for firms such

ance, pension plans and/or retire-

Baldwin, Syndicate

showed

vestor

a

systems. Also, as business
conditions permit, and when busiis good, we do have a

profit-sharing and

as

plans,

is.completed late this

The

mith, Barney & Co., N. Y. City

large
as

to

constantly thinkterms of how to maka
money, how to present an idea
and get it across,

group

four, five years; and finally what
they anticipated that they would
be

becoming
stock,

common

advice

my

and
brokerage
business
is
to
think seriously of research as a
career, or at least to put in a few
good years for the groundwork or
roadwork, as "we say. Also, all m
not handed to the analyst. Research is hard work. It means
thinking and working day and

and has made the institutional in-

whether

whole has been. Without

a

of

summary,

young man thinking of making a
career in the investment banking

towards

all know. This trend was brought
about, of course, by high taxes,

will be in-

you

In

example,:

trend

also

are

buyers

probably

knowing,

definite

Well, our studies have
shown that by far the most effective way to create business, particularly from institutional investors, is by direct presentation of
the idea by the man who knows
it best. The institutional investor

sion

epartment, Morgan Stanley & Co.
the text of the

as

things

ody & Co.; Nelson Schaenen, Jr., Buying Department,
illon, Read & Co.; Peter Philip, Municipal Department,
.H.Morton & Co.;.Lee Prather Stack, Jr., Sales Depart-

give

or

income

discussing whether it is more desirable to be that way or
not, the
firms in the Street do, offer' sucxi

ntimately familiar. The Panel was moderated by Robert
Seebeck, of Smith, Barney & Co., who is President of
he Investment Association of New York. Participants inluded David Lynch, Research Department, Kidder, Pea-

we

in

in.

collective investing. That is, investing by institutions, pension
funds, insurance companies,
banks, and the like. These institu-

Wall Street has become
any more
-•'security conscious" as the coun-

group of the younger men in Wall Street described the
unctions of the specific departments with which they are

Below

know,
-

all

For

se-

as

past few years there has

a

tions

this

th'e

in
well

as

industries.

been

it

With respect to
situation, you will

,

business

the

0ver

confi-

pur business.

>

careers: in the securities
By way of illustrating the point,

spective talks:

this

suggests a very
healthy climate for the future of

terested

Dickson & Co., and Robert

that

comment

s?ry to haye a partner or an offleer at the helm,

0ther

furnish

can

for

reasons

conclusions, but I merely wish to

for successful

ent. R. S.

You

years.

own

take place

curities

dence and you can draw
your own

Finance,
eld at the American Stock Exchange in New York City,
as a meeting devoted to a discussion of the opportunities
pen to yourigvmen
nd brokerage industry.

year

lieve so much in the importance
of research that it is almost neces-

Changes

and
over

luture

tion of New York.

of the Sixth Annual Forum

nomic conditions pertaining to the
industry under study.

confi-

passed

Group

A feature

each

as

more

anticipating greater incomes

Securities Business Discussed
of the younger men connected with Wall Street invest¬
ment banking firms, in pointing up opportunities for successful
careers in the securities
industry, describe functions and
responsibilities in each of the five departments of the business
m which they are now or were previously engaged:
Research;
Buying; Municipal; Sales, and Syndicate. Panel moderated
by Robert F, Seebeck, President of the Investment Associa¬

much

'15

buying
writing,

department,
the

the

syndicate,

underor

even

caJI 1"fopj,nr 3
offlce- wllJ course, not partners m
Of become all research
men

charve

of

the

research

depart-

ment, but many firms today be-

0fficials,

lawyers,

company

our

lawyers,
and
independent
c^rtified nublic accountants, and
own

thig

uguall

/

we

gation

Dlant

or

at

the

office.

it may be.
a

Very

At that time
thorough investi-

of the company, for two

reasons.
.

lace

takes

main

whe£evJr

First, we are interested
-

1

in fmdm^ Put

+h_

nnniitv

the qual ty

Continued

on

of

page

the

SO

16

The Commercial and

11980)

Public

$15 million by next

By OWEN ELY

Like

most

pipeline com¬
panies, it has enjoyed very rapid
growth in revenues, which are
now

Revenues

1945.

last

over

the

for

nine months of 1956

20%

those

of

nearly six times those

1951, and
of

double

than

more

first

nearly

were

contained

The System's gas supply seems
ample, while United Gas continues
to be the chief supplier, the com¬
pany is using more and more of
its own gas; in fact surplus gas is
being sold to other pipelines cur¬
rently. The pipeline system had a

second'one

gain

Natural Gas division spent

finitive plans to expand the pipe¬

The company's major operation
is

pipeline

a

from

the

gas

system

fields

in

extending
northern

Louisiana and eastern Texas to the

metropolitan

St. Louis area in¬
cluding East St. Louis, Granite
City and Alton, Illinois. The com¬
pany sells
gas to
50 industrial
customers and to 14 utilities.

line

revenues

divided

Pipe¬
equally

about

are

between

industrial

and

utility sales.
The

population served by the
utility
customers
is
about 1,700,GOO, over 90% being
in the St. Louis region. Laclede
Gas Light Company in St. Louis
company's

for

accounts

sales,

the

one-third

of

mcf

other

12%.

Gas

very

utilities taking
area
enjoys a
competitive position

good

in

this

compared with other fuels. Some
of

the

principal

tomers

industrial

include

cus¬

Owens-Illinois

Glass, Granite City Steel, Laclede
Steel, Mississippi Lime, Pittsburgh
Plate Glass, National Leafi, Shell
Oil, etc. Union Electric Power and
Illinois

Power

also

buy gas for

boiler fuel.
The company has been diversi¬
fying in related fields, and about

one-third

of

revenues

will

soon

be from non-regulated business. A
former subsidiary, Natural Gas &

Oil,

was

company

erated
and

merged with the parent
in 1954 and is now op¬
division. It explores for

as a

produces

oil

gas,

and

con¬

densate.

Mississippi River Chem¬
ical Co., also now a division, in
1955

constructed

$15

a

million

petro-chemical plant and produces
nitrogen
chemicals
for
use
in
agricultural fertilizers and indus¬
trial

processes.

principally in the marshlands and
shallow

Milwhite

coastal

Louisiana

Gulf

of

waters

The

Coast.

the
com¬

has in operation a large self-

pany

drilling barge and. a
is expected to be com¬
pleted by mid-1957. Last year the

nearly

line

tion

for

and

development; this
planned to spend $11

naa

ion but will be unable to

whole
if

amount

due

year

mil-

use

the

to

suspension
drilling
resulting
dispute
between the

off-shore
the

rom

•federal Government and the State

of Louisiana.

the

belt, should
enjoy a considerable advantage
over
Gulf Coast producers with
respect to shipping costs. The price
tructure of nitrogen weakened in
July but improvement is expected
in January. The division is en¬
joying unexpected off-season sales
and tne management is optimistic
regarding their ability to sell the
near

corn

ull production of the neyr plant.
The plant cost about $15 million
and is expected to gross about $8

million and net about $1.5 million
on after charges.
Further expanion in
als

the field

is under

of petro-chemi-

study.

The Milwhite and Mobar plants
being modernized
and
exanded,
with
operations
inte¬
grated.
Milwhite
has
some
87
warehouses and stock points in

.ouisiana

and

Rocky

Janada.

panies

Texas

and

Mountain

Together

are

the

the

two

in

28

area

and
com¬

third largest sup¬

pliers

of drilling materials and
•nemicais, ioilowing National

bead and Dresser. Mobar has been

the

business a long time and
valuable leases. It has opened
rev/ mine in Mexico*, and is also

in

revenues

in

the

De¬

being prepared,
possible increase in capacity
are

system
a

of about

10%

by 1958. However,
the company has no plans to build

additional
Gas'

any major extensions or

main

lines,
Storage project

cessful

if -Laclede
less

proves

have
that

ias

extending its mining activities to
Georgia and Tennessee; it has
started
importing mineral from

—

expenses

moving some of its opera¬
tions. Even DWG, however,

escalators,
low.

were

the

Thev

held

FPC win

fellow

-

—

-i_

istic policy as to price regulation.
The company lias a

position and

strong cash

public

no

will be needed in the

financing

near

future.

*

*

*

^

•

Among the better efrnings
that of General Cigar

was

boosted

which

the

for

net

over

last

year's results and,

according

to

should

able

be

studies,

some

push the

to

full year result over the $5.50
mark. An even better series

Marbury will soon become Chair¬
man, but will continue as chief

in contrast to other

figures is generally

con¬

ceded to be ahead next year

the

where
next

industries

projections for
are guarded.

year

Clark,

formerly President of
Cities Service Gas Company, will
become

an
are

President.

have shown
trend since 1853 and

upward

estimated at $2.49 for this cal¬

endar

last year.

cluded

compared with $2.02
Last year's earnings in¬

year

a

special profit cf $1 mil¬

lion
(presumably before taxes),
resulting trom a cieai oy whicn w.
R. Stephens Investment Company
acquired a controlling stock in¬
terest in Arkansas-Louisiana

Gas

Company, and. another $1 million
profit is anticipated.
Mississippi River Fuel has been
selling recently around 33 and
pays $1.40 to yield 4%%.
The
price-earnings ratio,
using
the
estimate of $2.40 for the calendar
year

1956, would be 13.7.

ban

also

and

chemicals

and
other
products
the drilling of oil and
wells. Mobar's principal busi¬
ness is the mining and
processing
of the mineral barite, an ingre¬
dient of the weight materials.

needed in
gas

The
iaries

new
are

divisions

reported

subsid¬

and

doing

well.

Natural Gas & Oil, which started
about six
years ago
with some

$20 million plant, is considered by
the management now to be worth
in the neighborhood of $60 million
based

on

value

of

reserves,

etc.

It

currently has about nine rigs
operating in its exploration and
development program which is

AREA RESOURCES BOOK
explains why tha
arta

we

offers

so

serva

much

opportunity
to

industry.

Write for
FREE

the

investment

favo

ites with the

speculators
prominent in the foreign

mo

cor

panies. Some among the d
mestic producers, such ;
Ohio Oil, were still favore

statistically

since

been left behind

oil

recent

for

they

a

bit in tl

popularity.

Ohi
instance, has been avai

able

at

5% yield and at

a

11 times

price around

eari

some of the oth(
have
commanded

view

in

of

the

de¬

2%,
if

5jc

pressed

*

prices, continued in

Sinclair Oil is another tha
good favor. United Mer¬
chants, Allied Stores and As¬ has remained depresse
sociated
Dry* Goods were agaipst the group average
available at less than 10-time
among those in the 6% or
better bracket at recent price earnings at recent prices an
levels.
offering a 5 % yield. The com
*
*
*
pany has been rather busy ii
Like the store stocks, the new
acquisitions and wit
food issues haven't yet par¬ new financing, which in par
ticipated in the bull market explains the weight on ih
to any

for

THE MARKET... AND YOU

eri$is. The purely domest
companies, consequent!

issues

spectacular degree and

had their

Mud

omp an ies,
we]
by the Middle Ea

stocks, both because
big trend toward subur¬ price of from 15 to 20-tim<
outlets and fatter profits earnings and yields of aroui:

the

share

"reasonable

of followers

value"

at

a

Sales

Company and Mobar Corpo¬
ration are recently acquired sub¬
sidiaries. Milwhite sells, and serv¬
ices the use of weight materials,

c

swgved

ings where

Stores Favored
Store

earnings

tional

were

three-quarters half again

first

of

soon

Crisis

Oils, especially the intern

Capitalization is simple, with 47%
debt and 53% equitv interest
Mr.

executive officer. He is the largest
individual stockholder. Glenn W.

Oils and the Middle East

relatively steady in the

profit column.

original

also think

& Ohio.

in

than

its

fixed

orices

story an
persistence in recent sessions,
the rails were favored
on!
pattern won't be upset
by those looking for sheltere
by external situations.
sj:
*
*
yields without any great cap
tal appreciation
element,
One of the smaller groups
distinctly minority group.'
the cigar makers — have
few of the issues were
div
been showing decidedly
dend increase
candidates, i
better earnings with only one
eluding Southern Paci'fi
exception, DWG Cigar Corp. Rock Island and
Chesapeah
which faced unusual

which

suc¬

anticipated.
The
regards cost prices
purchase contracts as
satisfactory—while some conlracts
under

Share

re

he

in

12%

management

The Mississippi River Chemical
division, due to its geographical

location

of

nine months ended Sept. 30.

*5 million for leaseholds, explora¬
a

year.

leaving

year

about 1.5 million net after charges.

Mississippi River Fuel Company

lion.

19

Cuba
and
has
opened, a pew* average will be of little mo¬ »dour- tinge. And with. a ne
processing plant in New Orleans. ment since there are
round of wage
groups
increase
President Marbury pf. Mississippi
River Fuel expects' the Mobar- heading either way with some , spreading out currently, |t '
much the same old
Milwhite division to have sales of

Utility Securities

Mississippi River Fuel is one of
the smaller pipeline systems, with
annual revenues of over $55 mil¬

financial Chronicle,. ^Thursday, November 8,

time when

the

averages

are

issue.
The Individualistic Metals
The varidus

"rare"

metal

have been

making importan
still rather lofty.
progress in winning a soli
niche in the jet age but with
By WALLACE STREETE
Foods Profit-Squeezed
sparking anything lik
Part of the reason for the out
lack of popularity has been the general enthusiasm tha
The Election Aftermath
that he would run for reelec¬
the fact that food companies g r e e t e d nebulous uraniu
The stock market showed tion. The actual news gen¬
claims a while back. Wha
this week that the political erated rather heavy volume generally were in pretty
much of a price squeeze, hold¬ play there was in Nationa
with the buying and selling
pollsters have come back into
Lead or in[ Allegheny Ludlu
favor, for their correct pre¬ enough in balance so that the ing earnings relatively seemed
pretty much on in
steady. Standard Brands,
net effect was little
diction of the election
price ac¬
proved
which acquired Clinton Fpod.3 dividual merits and little in
to have been well discounted tion despite the trading fan¬
their plans t
earlier this year, is one that fliienced by
in advance. In
fact, the Eisen¬ fare. Currently the various
stands out on a good earnings build a titanium rolling mil
soft spots
hower victory was the
in the economy,
signal
for their jointly-owned sub
improvement of 25% over
for some rather
pronounced plus those now1 struggling
last year for the first three- sidiary, Titanium Metal
with an
even
greater cost
profit-taking in some key
Corp.
squeeze,
and the fact that quarters. The improvement
*
sje
❖
spots.
*f
if
if
partly reflects the benefits of
many quality issues already
Similarly American Potas
the merger starting to take
Most studies of the market have discounted good news
hold. Company expectations has had pretty much of a mun
indicate that elections seldom for many months ahead, all
dane market; life although i
are that next
year with the
have any lasting effect on the combined to keep enthusiasm
is the second largest producs
full benefits of the
merger a
trends already
underway. tempered.
bid might be in the works to of boron and is solidly en
And they have no record of
Post-Election Restraint
trenched in the lithium busi
top the postwar record in
being able to reverse a trend
ness.
Boron is a rocket fue
With the election out of the
profit reached in 1946.
in existence. Even in
1948,
ingredient and lithium is im
way, the consensus of opinion
when all the election
predic¬ is still best described as re¬
Rails Uninspired
portant in atom bpmbs them
tions came a grand
cropper, strained.
Moreover, both ma
Railroads continue promi¬ selves.
Any yearend rally
the market wasn't
overly con¬ will be "moderate"
although nent at the high-yielding side' terials are slowly building up
cerned after the first brief re*
possibly boosting the indus¬ of the market but without in¬ in industrial demand and, by
action to the surprise.
trial average to
a_new peak. spiring any more than mo¬ some authorities, are seen on
«
#
if
Some of the more optimistic
mentary takers. The experi¬ the threshold of proving 0
.

COPT
Box 899,

Dept. X




Salt lako

City 10,
Utah

.

The reaction to this
partic¬
election was

ular

similar

to

that

strikingly
early in the

grant that there's

real

chance the index
550.

fore

the

various lin|es could
regulatory authority
after a bit of
But for individual
situa¬ for
seeming indeci¬
increasing their own rates,
sion, finally announced flatly tions the perfdrmance of the
profits statements assumed a
year

when the P

r e s

i d

e n

t,

their pro

ducers.

an outside ence in
previous rounds of
might reach wage boosts has been that be¬

if

if

if

secure

profit help to

| The
article
time

views
do

not

coincide

"Chronicle."

expressed in
necessarily at an.
with

They

those oj
are

preset

1

Number 5584

«4

i»s

Volume

<

.

...

Against Boiler Shops

Marine Tr. Dept.
York, has

New

Association

of

lists"

Securities

vice-

that

'

in

the

3,700

Association

of the
Municipal Se¬
charge

members

be

of

alerted

the

to

of

themselves
of

intensive, highsolicitation
curities De¬ pressure : telephone
campaign to sell worthless securi¬
partment of ties. The
campaign is be.ing con¬
the bank. This
ducted across state lines by or¬
appointment
ganizations whose activities and
becomes effec¬
conduct in no way conform with
tive
Nov.
1
legal or ethical standards of estab¬

have

of

who

to obtain

possible

panies

tr

or

Wallace

27;

past

>

H.

way,

-

Fulton,

much information

identy
.individuals

can

and

be

proof

DENVER,
Colo.
Bennett,
Edward

those

&

Lackner

Co.,
Building.

Bank

as

—

Colo.

Securities Company, Inc. of Wyo¬

en¬

with

With Investors

Mass.

BOSTON,

t—

/

O'Malley and John J.

D.

A

Vice-President,: New

Assistant.

charge of underwriting
distribution; Homer R. Berryman, Assistant Secretary, Buffalo,
in charge of bond distribution in
the Marine's Western New -York
area; Edward L. Brown, Assistant
Secretary, Buffalo, in charge of
the municipal consulting service
throughout the State; Daniel P.
Whitlock,
Assistant Vice-Presi¬
dent, New York, sales; and William
J. Murray,
Assistant Secretary,
New York, research and sales pro¬
York, in

ming has opened an office in the
C, A. Johnson Building.

New England, Inc., 68

Street.

Big New

and

motion."

Mr. Stone, who joined the Ma¬
in 1948, was

;

rine Trust Company

elected

Vice-President

a

1949.

in

completing his 29th year in
the municipal
business and has
been active in organizations asso¬

He is

ciated

therewith, having served as

President of the Municipal Forum,
New

York, 1953-54, and as a mem¬
the Municipal Committee

ber of

of the Investment

'

Asso¬

Bankers

ciation.

:

V

Richard

Thurlow will

be

Mr. Brown in

the

-

Business

machines

send

George

and

Parsons

with

associated

and

receive

data

municipal con¬

sulting service, working out of
Buffalo; Joseph G. McCarthy, in
New York, will be
responsible for
trading and dealer contacts; and

Bell-System lines

over

Bell

Chief Clerk,
Buffalo, will be in charge of oper¬
for

the

Information

language" tape.

re¬

Bell System teletypewriter and then
transmitted and reproduced automatically on other teletypewriters at whatever loca¬
tions desired. Or the teletypewriter can automatically write and distribute orders

William Taylor, Jr.,
ational functions

System teletypewriter and "common

corded

depart¬

perforated

on

tape is

fed right into

and make, at the same time, a

ment.

second

tape

which should go to a computing center

a

conjoining only the items of information

for analysis.

E. L. Voneiff Opens
BETHESDA.

Md.—Edgar
L.
Voneiff is engaging in a securities
business from
offices
at
4513

many new

Charlcote Road.

services.

He

was

with Barrett Herrick

&

formerly

Inc.

Co.,

New times
A

and

new

needs bring

for Bell System

new

field of tremen¬

well

(Special to Thh-Financial Cbrmhcle)

DENVER,

Colo.

—

Joe

Mrs.. Minnie

Enger,icMelvin
L.

*V

Silverman,

eakly,

and

have been
added

ontinental

Howard

W.
G.

to

One very

R.

Nelson, Hyman

Louis

the

Investments,

staff

I

of

n c.,

important use is in

Integrated

Data Processing, or
be

described

more

simply

as

"doing repetitive paper

work mechanically."
Such automatic
range

Four With Hamilton
J.

all the

processing may

way,

from keeping

routine records to the

to The Financial
Chronicle)

DENVER, Colo.—Edgar
1

with aston¬

machines

are

j

En-

of

electronic

operation

computers

which

System teletypewriter

already

any

number of

mechanical

or

use

pos¬

elec¬

one

is

of business and
cation between them is

becoming

and

This

is

more

important.

where

Bell

System

teletypewriter service is so help¬
ful. It can now be used to link
machine with machine,

office,

or

office with

offices with plant or cen¬

tral headquarters,

language" tape.

by

a

"common

LaCount

and

Emery

are now with HamManagement Corporation,

Grant Street.




and special Bell

System services to meet the needs'

communi¬

more

serv¬

essential part of

growing. But it is just

of many new

industry.

Whatever the need—from

gle telephone to
network

or

a

a

a

sin¬

teletypewriter

private telephone

line to control

or

co-ordinate

operations in separated places —
there's
meet it.

a

to fit the

of

vour

Bell System service to

Or it will be tailor-made

particular requirements

business.

en, William. A. Fremlin, Mrs.

■Mjitthews
oil

an

Integrated Data Processing, and

"But whether tthe

uses.

ice is

its

tronic, quick, two-way

what

can

sible

are

answers

Weissman

Equitable Building.

(Special

people, to communicate

Davis,

Hanson,

Jesse

as

with each other.

There

Bell

quantities of data

ishing speed.

modern business machines, as

With Continental In v.

great

uses

possibilities is in enabling

dous

absorb

and turn out

BELL TELEPHONE

A.

Investors Planning Corporation

,

announced a
new organizational
program" for
that division of the bank. He said.
V Stone as Vice-President in
charge will continue to make his
headquarters in our New- -York
City office but will spend several
days each month in Buffalo. Un¬
der his supervision,
the Buffalo
and New York offices will work
as a unit with William W. Hibbard,

Hansen,

Charles

years

; •-

Raymond E.

William

has been Man-^

'

,

Planning

Fornwald,

Smith" further

Mr

now

Inc.,

(Special to The Financial Chronicle)

Municipal Securities

of the
Department.

ager

are

Securities,

Whitely have joined the staff of

Columbia

—

Takeo Noda

Salmon

I.

Farmer's Union Building.

-

(Special to The Financial ChronIcle)

DENVER,

Harold

affiliated

National

First

1

DENVER, Colo.—Janice G. Al¬
lison, Alexander A. Ebel, Fred K.
Klarner,
Louis
R.
Lawrence,

and

Columbia of Wyo. Office !

gaging in this activity.

Executive

Securities Inc. Adds
(Special to The Financial Chronicle)

Bernard W. Lorance,

Clarke
F.
D.Erickson,, Jerry
F.
Kalavity,
Jack
Levy, William D. O'Neill and Mrs.
Joette D'. Rutledge are now with

regulatory au¬
supplied with

about

them.

to

Join Lackner Staff

In this

manner.

unknown

with

dealings

(Special to The Financial Chronicle)

of com¬
making

the

the .proper

facts

Jr.

Fred D. Stone,

as

on

solicitations in this

NASD notice said.

Vice-

brokers

in

co¬

may

Homer Brown-

President,
who
for
the

can

experience with this
high-pressure activity, or
in the future, is asked

kind

thorities

in g,

operators

had

lished securities organizations, the
"

"sucker

the

on

common • sense

"Any member, whose customers

an

upon
the re¬
tirement: of

,

these

who

Investors

said:

the
v

existence

business.

operate by reporting and identify¬
ing the sources of these telephone
solicitations, Mr. Fulton said. In
this connection, the NASD notice

Dealers, Inc. largest organization
of brokers and dealers, is advising
its offices throughout the country

fhfapp
the ppoSent of ,Fred D. Stone,
President

find

WASHINGTON, D. C.—The Na¬

announced

jr^as

from the

the

greatest protection to investors
always rests upon their exercise of

authorities to eliminate such firms

tional

;je tJL

Mr. Fulton emphasized that

Directpr of NASD, said the Asso¬
ciation wants to aid governmental

NASD Members Alerted

Fred D. Stone, Jr. to
Head

17

(1981)

The Commercial and Financial Chronicle

,

SYSTEM

•

'

of

Devonshire

IS

The Commercial and Financial Chronicle...

(1982)

branch* was>
former
Trust

location

•

CONSOLIDATIONS
NEW BRANCHES

ment

in

NEW

Bankers

and

OFFICERS, ETC.

REVISED

of

X

The

York

New

Agency

the

of

Johnson, President of
Beginning Nov. 8 busi¬

C.

George

Canadian

the bank.

Bank of Com-

ness

merce

to 8 p.m.

an¬

nounced
Nov.

election
V.

on

the

5

of

F.

Hewett

C.

is

each banking day at the
"drive-in" windows at the branch,
Mermaid

Toronto

to

board

of

close.

hours

five

and

open

its

be

duty

on'

the bank

before

hours

of

will

Tellers

Street.
two

17th

West

and

Avenue

doors

after

they

The "drive-in" windows at

directors.Mr., the Coney Island, branch of "The
is

Hewett

Dime"

opened last March as

were

The Monmouth County

announce¬

Bank was the

of

Governors

System.

*

of Sept. 21

as

tional

of

of

Mass.,

and the Merrimack National Bank
of Haverhill, Mass.,

with

of

of

dividend of $15,450.
*

*

si:

National

City
Bank
of
Cleveland, Ohio offered its stock¬
holders on Nov. 6 rights to
sub¬
scribe to 100,000 shares
($5,000000) of additional common stock
at

$50

one

share on the basis of
share for each 10
shares
The offer, which will
per

new

held.

*

•

common

stock

a

The

Bank.

Red

ex¬

pire Dec. 3, is being underwritten
advices, Oct. 26, the stock¬
by a group headed by Merrill
holders and depositors of the West
tion was consummated under the
Turben & Co., Inc. of
Cleveland!
Side Trust Company of Newark,
charter of the Andover National
*
Si:
%
" ":,£.
N. J. were advised officially of the
Bank and under the title of the
An offering to the holders
plans agreed to by the West Side
of

stock

of

In

The consolida¬

$350,000.

•

President and
Managing Di¬
of

rector

Intyre
F. V. C.

pine

Hewett

Ltd.,

direc¬

a

Castle-

of

tor

Mc-

Porcu¬
Mi n e s

Srethewey Mines Ltd., The Im¬
perial Life Assurance Company of

convenience

a

until

other

and

companies.

*

*

hours

R. G. Miller has been appointed
Bank

of

British
nounced

on

Lew

York

Mr.

of

Nov.

it

1

in

was

an¬

by the bank's
the

entered

bank

in

in

now

effect

the

at

Dime"

"The

of

office

Extended

day.

a

and

two of its three branches.

1919

service

at

Halifax

rnd

Andover and Merrimack National

of

office

Haverhill

officer

New

Bank

positions

Plains,

nounced

Y.

N.

at

were

an¬

25 by Harold

Oct.

on

Na¬

at

Westchester,

of

J.

Marshall,
President.
Ralph
G.
Holmes, Vice-President in charge
of the Gedney Office, will move
to

Tarry town, where he will su¬
and

Offices

Paul
in

R.

Hawthorne;

in

one

Vice-President

Bellows,

charge of the Peoples Office on
Avenue, will move

Ottawa, Toronto. St. John's, Nfld.,
and New York City.

George E. Schmitt, Vice-Presi¬
dent, will take over the Peoples
Office.
These shifts in responsi¬

shares

The

Lyall

as

ard F.

appointments
of
James
Vice-President and How¬

Peters

Assistant

as

troller of the United

States Trust

Company of New York,
nounced

Nov.

on

Comp¬

1

were

an¬

by Benjamin

Strong,
President.
Mr.
Lyall
joined the company in 1935 and
since

then

with

He

the

has

been

personnel

was

connected

department.

appointed

Assistant

an

Secretary

been

an

since

in 1953, and has
Assistant Vice-Presirlen+

January of

1955.

member

the

of

Mr.

Lyall

Board

of

is

of the American Institute

nors

a

Gover¬
of

Banking.
Mr. Peters was first
employed by the company in 1926
has been associated with the

and

Comptrollers
that

Department

time.

Thomas

F.

*

*

Vice-Presidents

of

Chase

Manhattan Bank
York, it was announced
Nov.

5

week-end

by

of

the
New
the

over

J.

Stewart

Baker, President. Mr. Glavey is
in charge of the insurance
depart¬
ment

and

Mr,

Roeder. the

credit

department, both at the head
fice.

Other

of¬

promotions

among
the head office official staff were

those

of

Harold

Assistant
T.

Coburn

Vice-President,

McMahon

urer,

B.

to

to

Daniel

Assistant

Treas¬

and James P. Power to As¬

sistant Staff

Counsel.
*

.

'*•"

"

*

*

The

Gedney

Office

National
solidated

after the

Bank

&

with

Peoples
Co.

Trust

National

Bank

of

has been elected

of the bank and will be in

Dinner-Meeting
Club

on

at

Oct. 30.

the

Fred¬

C.

Bragg, a real estate ap¬
praiser of the bank, was welcomed
as

the

with

gold

a

Charles
the

D.

Club,

Member
watch

member and presented

new

watch.

Behrens,

was

and

from

made

President

founder
an

received

the

Club

of

Honorary
a

gold

members.

Winthrop
Taylor,
Chairman
of
the Board, has the longest record
of service of the active members
There are 19 members, 5 of whom
are

retired
*■

on
*

pension.
*

12

was

announced

on

Nov.

Mr.

the

the

Schmitt joined the

National

Peoples

Trust Co. in




Bank

observed

Conn.,

week

of its

made

25,

at

merger, we are

Side

West

"For

Growing

change of name.
with

business

i d

v

1

u a

as

throughout

s

Some

nationally

have

names

bank's

history.

organized

62

New

staff of

T.

with

Mayor
Henry

Barnum,

Auditor

when

the

Peo¬

ples merged with'the Westchester
Bank

&

Trust

Schmitt's
be filled

has

Co.* (now

National
of Westchester).
Mr.

Bank

position

Mr.

as

Auditor will

by Henry P. Lawson, who
his

been

Bridgeport
in
1875.
Davison gained

of

ceeds

we

Bellows

Bank.

in

when

he

joined
the
Peoples
National
Bank
&
Trust Co. as Assistant Vlce-PresL
In

March, 1955, Mr.
placed in charge of
Office. Mr. Bellows

was

the

Peoples

was

President and Director rf the

Oystermens Bank & Trust Co. of
Sayville, N. Y.; a Vice-President
of Manufacturers
of New

Trust

Company

York; and Executive Vice-

President, Trust
rector of the

Officer and Di¬

First National

Bank

& Trust Co. of

fore

Summit, N. J., be¬
locating in White Plains.
*

The

*

*

Poughkeepsie

Trust

Com¬

pany, a State member of the Fed¬

eral

Reserve

System

National

named

the

bank

Dutchess
pany,

charter
with

Bank

with

the

the

in

the

first

American

Trust

offices

Plans

for

First

Com¬

in

the

*

the

*

consolidation

National

lrshtown,; N<

J.

Bank

of

the

with

to

Co.-

of!

Newark,

N.

made

was

stated

one."

of

Engr

Mon¬

new

is

senior

Union's
1948

Red

is

Counsel

Of

the

law

of

Al¬

Mr.

Riker

has been President of the Frank¬

lin

Savings Institution of Newark

institution

was

committee.

Riker,

was

His

father

Adrian

President of Franklin.

made known in the Newark

"Evening News" of Oct. 17.
The
plans for the consolidation, still
await
approval
by
the
Comp¬
troller according to the Newark
"News" which reports

that,
consolidation*
result in the Englishtown
becoming a branch of the
proved

mouth

.

the

County

National

if ap¬
would
bank's
Mon¬
Bank.

"News" added:

Norman
Pa.- has

H.

Rea

of

been elected
of

Glenshaw,

an

Assistant

Fidelity

Byerly,

nounced.

as

President,
has
Rea has been

Mr.

an-'
serv¬

$7,000,000/

the

basis

of

for

each

20

,

the sharehold¬

the benefit

ers

of the Republic National

will

of

of

a

the increase

in capital will

formal approval by
Comptroller of the Currency.

capital stock will be
$32,-

The bank's

increased from $30,600,000 to
.

130,000, and surplus from $39,400,000
to
$42,870,000,
making
total capital and surplus $75,000,000.
The increase will bring Re¬
total capital funds, in¬
cluding reserves, to approximately
$87,000,000.
It : is contemplated
that Republic's, current., .gividend

public's

$0.14 pet:share per' month,
$1.68 per shafts4 annually, ap¬
plicable ' toJ all shares kL be out¬

rate of
or

standing on completion of the| in¬
will continue, Mr. Florence
pointed out. A previous item in
the matter appeared in our Oct.
18 issue, page 1661.

crease,

The

*

Bank

*

sf

capital of the First National
in San Rafael, Calif, was re¬

ported

at

increased

$900,000 as of Oct. h
$800,000 as a re¬

from

sult of the sale of

the

stock.

administrative
as

an

division.

Assistant

He

*

Chemist

$100,000 of new
*

*

the Midland
London, an¬
that Whitney W. Straight,

Board

of

C.B.E.,
M.C.,
appointed
a

School

shares and
First

shares

more

National's
were

the

than 95%
425

voted.

of the

outstanding

be

effective upon
the

County's 710,000 outstanding

of

88%

Bank

cash dividend of $2,000,000 to the bank. Issuance of
the stock dividend and completion
pay

of the board of directors of Shaler

as

the con¬
was
described by Mr.
'overwhelming.' More

This stock
a present
approximately

of

ing as an Investment Officer, and
formerly was a Trust Officer in
served

of

Issuance of

on

Simultaneously with the effect¬
ive
date
of the proposals,
The
Howard Corporation and other
corporations
whose
shares
are
wholly owned and held in trust

Monmouth

Bielitz
than

favor

stock divi¬

a

1956.

value

McCallumHatch Bronze Co.,
of Buffalo, N. Y., before entering
the banking profession.
Mr. Rea
currently serves as Vice-President

in

/•'

share

be

outstanding.

market

Trust

Company, of Pittsburgh, Fa., John
A.

5,

will

additional

-

Vice-President

'■

dividend it is stated has

the

since 19i9.

firm.

Nov.

shares

a

though his new post, which is
salaried, will take much of his
time, he will continue as a mem¬
ber

.

rata to shareholders of

pro

stock

one

since

member

a

board of directors

ap¬

George L. Bielitz, Pres¬

ident of the Red Bank

The

the

Mr.

as

1„.1

shares of
Value of $12 each

distributed

be

to

record

bank's

post

General

>

*

additional

127,500

dend

as

Bank>of

hiavej been]

Bahkvi NitJ.

Oct. 16 by

it

of

partner

and

*

stock of the par

"News"

the

"The

that

and

profits.

for

the

by

directors

of

surplus

was announced by Karl Hoblitzelle, Chairman of the Board, and
Fred F. Florence, President of the
bank.
Proposals adopted by
shareholders provide for issuance

IridmatuW t'ip+ the

18.

ment

board

stock,

stock, $6,000,000
$5,063,000 to un¬

it

was

Newark

the

common

*

effective

J.

of

Sept. 5 shareholders of the
Republic National Bank of Dallas,
Texas voted at a special meeting
approval of a 5% stock dividend,

made known in the
"Evening News" o| Oct.

1,

on

offer

On

mittee of the Fidelity Union Trust
Nov.

to

divided

Com¬

sincq ,4944 an$ a, member of its
board
since .*1§24." He is a Di¬
rector "off the
Mutuaj, Benefit Life
proved I by 'the
stockholders ,^f
both banks, it was indicated on Insurant Co. and is on its finance
National

mouthCotfnty

solidation

title,

Cross

Red

War.
*

the

Morgan

a

..of

"Voting

first

a-new

and

head

of

un¬

the first

and_ organizer

partner

and

Bank

was

York,

New

the

and

Company, both of Poughkeepsiev N. Y., merged on Oct. 15
under

of

began his associa¬

1947,

President.

Mr.

experience

founder of the Bankers Trust Com¬
pany

Irving Riker

business

3

the/sale

Essex

Executive

Chairman of the

of

bank

Riker,
who
of
the
law
of
; the
Pequonnock firm of Riker, Emery & Danzig ol
Davison later became Newark, has served as Fidelity

banking

President

tion with National Bank of West¬
chester

first

World

Assistant.'

as

Pomeroy

his

pointed

merged
the fabled

served

der Mr. Barnum who

January,
October, 1953, he was ap¬

by

w»s

Barnum,

1952.

In

the

1913

earlier

Showman"

"Master

&

In

years

Mr.

it.

was

Bank

May of 1935, and

Phineas

The election of

prominent

identified

been

of

subscription

at

$z,tjo4,0u0 will be credited by the

County, we have felt that a 'local¬
ity'
name
(which
'West
Side'
really is) was not in keeping with
our enlarged
scope of operations.

towns.

The

expire

investment firms headed by Mor¬
gan Stanley & Co.
Of the pro¬

in-

and

concerns

$52

p.m.
(EST) on
Nov.
21, 1956.
The offering is
being underwritten by a group of

which

offices

four

at

opening

1.

will

a

have

ten

the

Nov.

offices, all in the City of Newark.
signed by T. C.

offered the rights
per share for
shares held of record
are

subscribe

each

page 1759.
Tpis
advised, will give
Trust
Company live

Oct.

of

sue

to

*

named Vice-President in

Merchants

7, by

Bridgeport,

last

into

with

years

Ro^helle Trust Co.

Trust

it

of

National

been

by the National Bank of
Detroit, at
Detroit,
Mich.
The

d i

*

Pequonnock Bank, of Bridgeport,

♦

Seven more hours have been
added to each banking day at the
Coney Island branch of The Dime
Savings Bank of Brooklyn, N. Y.,

*

*

rpu^

the

in
November, 1953.
joining the Peoples Na¬
Bank & Trust, he served

to

Bellows

erick

Foreign Department.

sub¬

has

stockholders

Banking and Insurance of the
A reference
was made to the plans in our is¬

serve

Westchester

of

Montauk

of its

rights to

shares of addi¬
stock

common

State of New Jersey.

Company have been considering a

charge

stock

for 263,400

of

Co.

&

Vice-President

a

tional

long time, the officers
and directors of West Side Trust

Harriman

Brothers

of the stockholders
of both banks and the Department
approval

with

associated

formerly

Brown

Boston, Mass.
C. Farley,

Louis

that

announces

Jr.

of

Company

scribe

the

.

common

subject to

merger

a

Wallace, President, also states in
Street,
part:

Bank-State

Second

The

Trust

its

and the Bank of

Company

Commerce for

The announcement

*

$

*

Prior

dent.' In 1952 he'Wa's hafned Vice-

annual

common

$253,212.

con¬

Quarter. Century Club of
The Kings' County 'Savings Bank
Brooklyn, N. Y., held its eighth

of

in 35,000
stock, par $20

$700,000,

of

White

in

Office

Gedney

be

quar¬

National

Andover

Trust

the 150th anniversary
founding as the first bank¬
The Board of Directors has been
bilities were made following the
ing institution in the old Borough
resignation of Edward W. Hickey, of Bridgeport with a then popu¬ considering several other names.
Vice-President, who has been in lation of 1,089. It is one of the Now that We are acquiring a
fifth office, through merger with
charge of the Tarrytown area.
oldest banks in New England ana
the Bank of Commerce, we have
Mr. Holmes has been in charge the third largest commercial bank
decided to use that name for all
of the bank's Gedney Office since in Connecticut. Capital of the in¬
of
the
West
Side
Trust
Com¬
it first opened on May 25, 1953.
stitution at organization in 1806
He has been with the bank since was
$200,000.
Its present assess pany's banking offices, including,
of course, the new office at 313
1929, when he joined the staff of. are
$144,000,000 with deposits
Market Street.
the
Peoples National Bank & amounting to $131,000,000. In ad"The
merged institutions will
Trust Co. as Cashier: he was made diHou to its ma'n office
in the
have
capital accounts in excess
Vice-President
of that bank in business center of Bridgeport, the
of $3,800,000 and
total resources
January, 1952, and continued as bank has 10 offices in other sec¬
of approximately $50,COO,00^.''
Vice-President in charge of the tions of the city and in adjacent

for

Glavey and George
Jr., have been ap¬

Roeder,

pointed

the

to

tional
*

,A.

since

former

at

each, surplus of $700,000 and un¬
divided profits of not less than

Plains, replacing Mr. Holmes, and

*

the

:

will

branch

a

in

bank's

located

be

The consolidated bank has

capital

a

Mamaroneck

*

and

the

of

Bank.
l

prior to his appointment was
Manager of the Vancouver branch
in 1953, held senior positions at

*

will

maintained
ters

The

Haverhill.

Bank

main

1

pervise the bank's two Tarrytown

agency.

Miller

the

The

Commerce

Columbia,

are

main

White

Regional Superintendent for
Canadian

hours

13

open

tional

*

motorists, but
have been open

only during the regular six-hour
banking day. Now they will be

Canada, National Trust Company
Ltd.

for

they

now

the

of

Key-

National Bank

Monmouth County

$350,000

$772,825

the Peoples
National
Norristown, Pa., became
$788,275 as of Oct. 15, as a result
Bank

Banking Company of Keyport, N. J., the consolidation hav¬
ing been* effected Aug. 17 under
the
charter of the
Second Na¬
tional Bank and the title of the

effected

Andover,
stock

common

the

from

capital. of

port

of the Andover Na¬

Bank

with

with

consolidated

Com"

of

'

Increased

<

6, page 986, where¬
noted that the Second

was

was

*

was

it

in

Chamber

'

a pre¬

present
indicated in our

was

Junior

merce.

National

outgrowth of

formerly was VicerPresi*
Director, of the Pitts"

and

burgh

'

>

He

etc.

dent

National Bank of Red Bank, N. J.

vy':,

;

,

*

consolidation

The

Allegheny Investment Association

issue of Sept.

126,250 shares of the same par

value.

-

This

year;

consolidation, the

Poughkeepsie Trust Co. increased
its capital from $350,000, in 70,000
shares, par $5 each, to $631,250
in

as

vious -consolidation, the

Reserve

the

transacted from 7 a.m.

now

bank, becoming a Director.''

20

Federal

Incident to

CAPITALIZATIONS

•

Oct.

Board

the

of

the

the

Poughkeepsie
This was made

of

Company.

known

continuing

Presiaent, witn Frank K.„ Arnold,
of
the
Englishtown
established' tin'.'the' President,
A

tional Bank & Trust Company.

News About Banks

is

Bielitz

"Mr.

Na¬

Merchants

of

offices

former

Thursday, November 8,
1950

with

District; instructor for the

American

besides

Institute

being

past

of I Banking;
President of

directors

The
Bank

-

nounce

land

Limited,

and

Bank

of

D.F.C., has been
member of their
Board of Mid¬
Executor & Trustee

of the

Company Ltd.

19

(1983)

Chronicle

Number 5584... The Commercial and Financial

184

olume

portable surpluses of goods avail¬
able for the requirements of eco¬
nomic cold war will be less plen¬
tiful. The Soviet Government will
be in a less favorable position to

Economic Effects of

Bank and Insurance Stocks
By ARTHUR B.

Satellites' Liberation

WALLACE

the

for

This Week

that Congress, it

in 1950

It was

Bank Stocks

—

pled somewhat grudgingly, enId legislation the net effect of
hich was to give member banks
f Federal Deposit Insurance Cororation some abatement of their
ssessments. When the corporaion was set up it was expected
hat if the deposit insurance fund
eached $1 billion there would be
further need to assess the

the check-up, for most of the
remaining 49% were examined by
the Federal
Reserve
System or

cape

fund had grown to
$1,200,000,000 in 1950 when

make

for

fund

And this gave no con¬
to another sizable
income, that derived
corporation's invested

sideration
of

source

the

calendar

1955

the

true

"other

grant

the

against

a

mism.
c o

only two

to

suspend

assessments

this
that

at

a

half?

The

credit

due

the

being

piled

un

banks

credits

on

of Dec.

31, 1950 and

for

the calendar

crec^ to be applied to¬
payment of assessments

becoming due for the semi-annual
Period
beginning the next July 1.
this

out to be

60%

worked

credit

56.37% because operatloss reserves, etc.,

lng expenses,
were
e

charged

arges

ment

against

it.

These

brought the total

assess¬

for

that

year,

down to
$142,172,000.

$151,412,000
Of the 1955

fprr8^611!$56,869,000 was transtfts onoAn!
insurance fund, while
'

credited

was

u

ember banks

on

assessments.

their

.

to

the

next

due

'

Jfc 1^}JS that
on? do? P' Up t0

during the life
the end Of 1955,
!nsured banks had be99y
'jSs" banks. But over
trpco-^
deposits in these "dishu
lnjbtutions were recovered
Dronn^- epositors* The greatest
(24°/ !°nate
loss - to depositors

com!

"a*

^

losses

and

ex¬

n

5a,^]?epGs^s^ occurred in only

NATIONAL BANK
of
INDIA, LIMITED:
Bankers
to

Bishopsgate,
C. 2.
West End
(London) Branch»
13, St. James's
Square, S. W. 1.
Branches In India,
Pakistan, Ceylon,
Burma, Aden.
Kenya, Tanganyika,

Uganda, Zanzibar,

and Somali-

Protectorate.,

Paid-Dp
Reserve

-

£4,562,500
£2,851,562
£3,104,687
every description of
and exchange business.

Capital
Fund

Bank conducts

banking

Trusteeships
also

and

Executorship*

undertaken




would

curtailed

to

to

have

-

corre¬

a

will sponding extent.

order
con¬

The
may

change

in

Eastern

Europe

also mean that the countries

other

efit

also ben¬

this
tendency to¬
restoration of the full

the

of

their territories.

Conceivably the mere threat of

reoccupation by the Red Army in
case
of a successful
attempt to
overthrow Communist

-

satellites.

from

politico-military
Quite obvi¬

^

H,ce<j*

free

the

world

in

munist regimes

on

armies

of

t?S'

.c

Russian

of

the

the

of

former

sipee it isleaders that
the opinion

these

the

of

States

is

Eastern Europe

the ereignity,

of

satellite

military

restoration

ence

support

the

independ¬
liable

to

is

an

un¬

There may be un¬

fortunately another side to it. If
it should be possible to maintain

ously Soviet Russia can no longer

depend

change

mixed blessing.

effects of the change.

by

Eastern

hitherto

products

land

come

national Com¬

enjoying full sov¬

may
be¬
attractive to Socialists

Communism

more

in non-Communist countries.

of them

are

Communism
want

Many

at present opposed

because

their countries

to

they do not
to

be

domi¬

the nated
by Moscow.
If it should
to
prove
possible
for
Communist
increase the
number of Russian countries to maintain their inde¬
divisions which must be kept in
pendence from Moscow, their ex¬
readiness.
This
again means
a
ample is liabile to increase the
diversion of productive capacity number
of
Communists
in
the

weaken

will

defenses,

Russia's

Kremlin

from civilian to

participate in the government, the
regimes are likely to remain sub¬
stantially Communistic. The main
difference will be
that national

decide

military purposes,

Free

World.

In

countries such as

producing France.and Italy, where the pro¬
must be main¬ portion of Communists is alreadytained and even increased, the ex¬
very
high this might easily tip
pansion of heavy industries is the balance of power in their
bound to be affected by the in¬ favor. creased military requirements.
It seems, therefore, reasonable
The above conclusion is based to conclude that, while the change
on the assumption that the supply
in Eastern Europe tends to reduce
of consumer goods in Russia would
materially Russia's power for evil,
be maintined at its present level
it
also tends to strengthen the
In fact, one of the results of the
disrupted forces within the free
Polish and Hungarian revolts is countries. To avoid unwarranted
likely to be growing pressure on optimism it is well to bear in
the Soviet Government to increase mind this aspect of the situation.
the volume of consumer goods in

and

controlled

to

have

since

Russia.
sary

in

industries

goods

consumer

become

This will

order

to

neces¬

safeguard

the

regime against being overthrown
as a result of the growing discon¬
tent of the

long-suffering Russian

John Robinscn With
B. G. Morton & Go.
LOS

consumer.

ANGELES,

Morton & Company

Throughout history most

Calif.—B. C.
of Boston, na¬

„
.

v

,

'

R.

L.

nected
ment

Vaught have become con¬
with Hamilton Manage¬

Corporation.
I

-Trust Company

of

North America

justification the
future.
tion by irresistible waves of Rus¬
for developing
sian armored divisions. Notwith¬
a
backward: country by a more
Investment Ass'n of N. Y.
advanced country.
Poland, Hun¬ standing censorship, the Russian
masses are bound to realize sooner
To Have Cocktail Party
gary,
Czechoslovakia and Rouor later that, as a
result of repu¬
mania are culturally and econom¬
The Investment Association of
diating the authority of the Soviet
ically at a more advanced stage
New York
will hold a cocktail ;
Government, Poles and Hungari¬
than
Russia.
Their exploitation
party on Oct. 11 at the Lunch ;
was
a
case of advanced
peoples ans are now able to achieve -a
Club, 63 Wall Street, New, York ,
higher standard of living. In order
being exploited by a backward
to avoid any violent outbreak of City from 4:45 p.m. until 7 p.m.

had

not

for

its

existence of a need

people.

E.

Authorized Capital

further

revolts tional investment firm, has ap¬
originated not through love of
pointed John Robinson of Los An¬
freedom
for its
own
sake but
geles
as
West Coast
regional
only
the military and political through discontent causea by eco¬ manager,
name of Marc-XL.
Joel
Quint,
national
The American sales coordinator announced.
power of Russia but also her eco¬ nomic oppression.
nomic power in the international War of Independence provides one
Mr.
Robinson, formerly
with
With Federated Plans
of the innumerable instances. The
sphere.
British
Revolution of the
17th King-Merritt and Company and
(Special to The Financial Chronicle)
In the first place, the exploita¬
Investors Diversified Services,
SPRINGFIELD, Mo.—Thurman tion of the satellites will come to Century began with John Hamp¬ will head planned West Coast ex¬
H. Bell,. Frank A. Clifton, Donald an end. During the last ten years den's refusal to pay ship money.
pansion plans for the Boston, con- "
experts on Eastern Europe
F. Stockburger, George A. Tum- Eastern Europe provided one of All
cern,^and supervise existing
bleson, .and Jack L. Walden are the worst examples of Colonialism agree that, had Poles and Hun¬ branch offices in Los Angeles, San
with Federated Plans, Inc.
in history. There was ruthless ex¬ garians not been driven to despair Francisco and San Jose.
by ,.the
reduction of consumer
ploitation of the satellite States,
B. C. Morton & Company, with !
Join Hamilton Management the interests of which were en¬ goods supplies as a result of Rus¬ 30 offices representing mutual;,
sian exploitation,, and the forced
tirely subordinated
to those of
' 1 (Special to The Financial Chronicle)
of
heavy industries fupds and insured savings associ¬
Soviet Russia.
This Colonialism expansion
PORTLAND; Ore. —Robert E.
ordered by Moscow, they would ations, plan the addition of sev¬
was
all the more shocking as it
eral new offices in the immediate
Peterson, Merton H. Roberts and
not have dared to risk extermina¬

Government In
Kenya Colony and Uganda
Head Office: 26

land

Quite

place of
Forms Marc-XL
Moscow - dominated
international
Communism. It would be of in¬
(Special to The Financial Chronicle)
DENVER, Colo.—Gordon L. terest to examine the effect this
Marcott is engaging in a securities change is liable to produce on the
business from offices in the Guar¬ economic cold war. There can be
anty
Bank
Building under the little doubt that it will affect not

the

London,

industries

be

Similar result is likely to be pro-

Communism will take the

.

one

opti¬

governments will be sufficient to
secure
their position in spite of
the unpopularity of Communism
ating expenses combined.
in those countries.
This article is
The 1955 income on government
written on the assumption that the
securities, plus
"other" income,
system of satellite States domi¬
was approximatelv $39,600,000.
nated by Moscow will be replaced
Against this, administrative ex¬
by a system of substantially inde¬
penses and operating expenses, to¬
pendent Communist States. Even
gether with reserve for losses and
if
other
Left-wing
parties will
insurance

heavy

In

commandeered

than covered
the corporation's losses and oper¬

"other

continue

present

replace

in recent years more

or

figure.

1955

Einzig

sovereignty

cor¬

sessment income

n

Paul

wards

penses" totaled $9,536,000, or less
than
25%
of the above income

j

of

satellite States
may
Dr.

until tho fund got back up

to the billion and

corpora¬
tion was to credit
pro rata to the
insured banks 60% of the net as¬

ward the

an

.

net

ex¬

annually thereafter, the

^ea

their

European
juncture with the provision
countries. It is a matter of opinion
if the deposit insurance fund were
whether the Communist regimes
to drop below a given figure, let
in mese countries will be able to
us
say $1,500,000,000. assessments
remain in power after the with¬
at the present, rate would be re¬
drawal
of
Russian
troops from
sumed

nevertheless to
build
steel works and
dams in
uncommitted countries this means
that
the
expansion of Russian

of

supply

Should

considerably.

very

Russia

goods

sumer

ncei vably

the

such

the

and

assessments; but still the
fund grows. This legislation pro¬
as

guarded

may

Why would it not be equitable

their

vided that

attitude

covered

are

bonds

with little regard for what is fair
to the banks. The 1950 enactment
did

but there were

banks

banks, it becomes obvious
is

when

defalcation

of

$868,000,

allowance

that the fund

bank knows

for

losses

assessment income

member

no

justify

to

toward

It is, of course,

such in 1955, and in any case most

% of 1% of the corporation's in¬
after

small way

poration's funds would continue
to grow by reason of its invest¬
ment of nearly $1% billion, the
income from which has probably

penses" totaled .only
come

that

strike;

a

insurance

no

serious employee

fairly representa¬
to receipts and losses,
insurance losses plus

for

reserve

in

the minor losses.

about $39,575,000.

tive year as

the opportunities
skulduggery are

this examination routine has con¬
tributed

the

maintain

to

level.

Federal

the

down

in Russia even at which regained their freedom will
highly inadequate trade more extensively with the
particular, it will be Western world. In this sphere,
from
d o m
Russian domi¬ necessary to divert industrial ca¬ Russia's loss would be the gain
from
the expansion
of of the non-Communist industrial
nation, the de- pacity
industries to the expansion countries.
velopment of
the
crisis
in of light industries to that end. And
We should be unduly optimistic,
Eastern Eu¬ agricultural expansion will have
however, if we were to suppose
to be given a higher priority, to
rope
appears
that from tne point of view of the

Hungary can succeed in gain¬
ing their free-

With these and,
banks, state

totaled

year

and

greatly minimized. And, no doubt,

redemption value of

1955,

of

reduced surpluses

to be slowed down in

have

capacity

the.

of industrializatiojn

progress

writing to assume that Poland

chartered

financial

for

$1,690,592,000. These holdings in
1955 brought in to the corporation
As in

System.

state

examinations,

$1,724,900,000 face amount, carried
at market or

of

by fidelity
losses, aside
from the FDIC deposit insurance.

These latter at the end

funds.

members

Reserve

from assessments
had far outstripped not only losses
sustained in closed banks, but also
losses and expenses of operation

from

examination

annual

an

not

are

for
an abatement of considerable size,
as the annual accretions to the in^

combined.

to

policy

the affairs of member banks that

There was every reason

surance

is

corporation's

Although

—

might be premature at the time

it
of

reduction in the assessment

a

LONDON, England

Comptroller of the Currency's

The

heeded the banks' pleas

ongress

corporation auditors in that
but the others did not es¬

office.

tive

finds this not an
unmixed blessing since successful national Communist econo¬
mies may increase the free world Communist population, and
tip the balance of power in such countries as France and
Italy to Socialist parties.

year;

the

of produc¬
for sue 1 purposes,
expansion of Russian heavy
industries will have to be slowed
of any diversion

sence

in U. S. S. R. as: slowed down industrializationdiversion of heavy to increased light consumer goods

output; increased military production; and
available for cold-war export. Dr. Einzig

wing of FDIC. Approximately
51% of these had been examined

Well, the

rate.

pace;

the

by

Tito-type national communism,
possible consequences

occur

may

in other countries

of causing economic

sake

political embarrassment to the
Western Powers. Even in the ab¬
or

Economist believes such

noted British

banks under

insured

13,457

were

banks.

for

Should satellite countries gain

relatively

At the close of 1955 there

system.

from the

ver

of

negligible losses must be used with
the background of the examining

The assessment
start of the corration's operations been 1/12 of
% annually of a member bank's
otal deposits in a given year (less
ertain exclusions and deductions).
ember

statistics

These

o

ate has

"

out gigantic capital invest¬

carry

ment programs

By PAUL EINZIG

Bulletin

on

this

Request
-Resulting Changes in

USSR

Economy*

Laird, Bissell & Meeds
Stock Exchange
American Stock Exchange

Members New York
Members

180

BROADWAY, NEW YORK
Telephone:
Bell

ft, N. Y.

BArclay 7-3500

Teletype—NY 1-1248-49

(L. A. Gibbs,

Trading Dept.)
Stocks

Manager

Specialists in Bank

t

Russia

benefited to,

a

high de¬

discontent

in

Russia

itself,

have to make consid¬
erable concessions by increasing
the volume of consumer goous.

Moscow will

Join Allen Investment
(Special to The Financial

DENVER,

Co.

Chronicle)

Col o.—Clark

S. •

Evans, Charles P. Goldsmith, and •
by being able to commandeer
Will Reduce Surpluses for
James
W.
Stafford have been the
resources
of
the
satellite
Cold War
added to the staff of Allen In¬
States.
Now that this may come
Light industries will have to be vestment
to an end she will be thrown back
Company,
Mile High
on her own resources.
This means expanded to the detriment of Center.
heavy industries, and that the ex¬
that other things being equal, the

gree

20

(1984)

The Commercial and Financial Chronicle...

Continued from first page

considerably

for

Opportunities in Turnpike Bonds
increase in

believe,
of the

at

prices ranging from around 98to par and above, during the
years. Many of these bonds are now quoted in the middle
and low eighties, and others are at discounts of from
five to ten
points below their offering price.
*
•

rise,

consumer

spending. I
that the mood

however,
in

consumer

restrained

past two

at

a

much

a

slower

Considering the situation from the1 investor's viewpoint who
bonds when theyl were originally offered, present
valuations

not

are

too

pleasant to behold.

Yet, the

pike issues,

presents him with

now

1956 income tax

yield

substantially.
investment quality.

or

\ The Decline
I

Several factors

He

an

increase

be

can

the

first

total

Has Been General

have

half

The

of

spending next

interest

will

rates

has

affected

all

prices, Turnpikes included.
Also, many toll-road bonds were sold unrealistically
during an
aura of public
over-optimism about the future of these super high¬
Some issues

ways,

were

priced realistically and they will find
now going on and in
hignway program passed by Congress also
caused some
uncertainty about the future of privately financed
toll-roads, although the Federal Act specifically guarantees that
existing toll-roads will not be duplicated, and if they are absorbed
into the proposed 41,000-mile free
will get a fair return.
The
created

combination

all

of

highway system, the bondholders

these

factors

and

circumstances

has

general decline in the valuation of all Turnpike bonds.
some excellent opportunities for "tax
savings" for the
investor who will make indicated "switches" out of bonds that
a

have declined
a

in value into other good issues that have likewise
similar market depreciation.

the

to

limit

capacity of

the

and
pro¬

on

our

economy of as
in spending as

increase

an

all

goods

and

coming

be

able

output

$409

increase

of

goods

and

BONDS
Original Offering

Price

Price

Florida State Turnpike 314s 1995
Kansas Turnpike 3%s 1994

-

-

85

Richmond Petersburg T'npike 3.45%
Texas Turnpike 2.70% 1980

1995

Jersey Turnpike 2nd

ser.

what

out

89

100
2.80 basis

87

2.80% 1988

require

99

I

headed for

The

foregoing is not intended to be representative of the entire
list of Turnpike bonds now
selling at substamial aiscounts. Row-

a

avoided

issues that you will uncover if you
give the present market
of these bonds a bit of
study.

price
altogether.

listing

Incidentally, the New Jersey Turn¬

pike has been

very

successful and

The Ohio Turnpike is also

earning

and this is

power

for the 3!4S of

bond

showing
now

interest

is well

secured.

substantial improvement in

a

reflected

is

have customers who have bought Turnpike bonds at
higher levels when originally offered, they will appreciate it if
you can come to them with a suggestion for a "tax
savings switch."
you

There is

valid

no

when he

do

without

so

increasing his investment risk

or

Good customers will appreciate it, and will thank
being alert to an opportunity to do something tangible

in their behalf.

tion

to

in

before

of Parker Corp.

William

H.

Morris

Vice-President

—

of

of

Sales

Election"
Detroit

The

as

beginning of 1955 the
of
private
housing starts
reached the highest level achieved
.

the

p

ij

&

,

.

Co., 629

Minn.—George^^g ?herate°hadfailed
1956, the rate had fallen
,

Second

Until

staff

of

he

has

been

State

added

Bond

&

of

Pennsylvania

Motor

and

Finance.

Corporation

several
nomic

State University

instructor

an

He

in

King

u

Bank

has

has

Merritt

*

&

j,

x

the

C.

Co.,

,,

staff

Inc.,

of

Casco

Tk'll Qt

Joins I mil otarr

(Special to the financial Chronicle)

Michigan Corporation in 1951,
for
for




the
the

ialien

nas

starts

privately
for

probably
As
this

the

decline

staff

xwth
North

D

of
a

Lewis

Broadway.

over

the

1,100,000.

financed

full

housing
1956

year

this

audience

will

been

output

industry

expected,
of

has

an

im-

evoked

a

?ry h,as 5een

seen
manv
magazine
predicting the tremendous

increase in the demand for homes
because

the

of

exoected risq, in
family
income,
ignore entirelv the
facf fhat if home prices continue
average

These

^-0

writers

increase

the

at

postwar

D

added
Thill

°f wj,thdra.)v-;

In

the

which

third

our

it

is

not

with

today,
there is

place,

economy

limit is

the

housing

country. The Federal

its

absorb.

can

fixed

a

the

rate

limit.

It

of

short

a

is

limit

to

and

goods

is able to

pro¬

period.

of avoiding

Decries

The

serious in¬

the

VA-FHA

volume

of

I

do

the past, with the
migration of the population, and

with

the

rate

of

demolition4 of

outworn structures,
Before

we

of

voiume

evaluate

can

home

given
too

a

building

as

hi2h

q£

or to°

low
of

home"? the

we must
coui:se
these factors and

market

ably be expected to

can

has

exercising

absorb

year

afte* year" We baVG made SUCh

ume
we' estimated
in published
reports that the sustainable level

housing output

1956-60

was

Since

year.

the period

over

about
1,100,000 ■ a
publication of these

reports, volume has in fact fallen
to

this sustainable

level

significant that

and

it

is

having

once

reached that

off

on

figure it has leveled
plateau. Performance this

a

year therefore aooears to sunport
the idea that 1,100.000 is a
figure
which can be maintained
for
a
number of years into the future.

Housing Crisis in
Money

For

in

the

believe
the

tion

that

This artificial control should be
removed. I refer to the maximum

limit

on

VA

and

the interest charge under
FHA
mortgages. In a

tight money
tion

on

rate

not

Suppose,

of

given

above,
decline

home

constitute

but

can

on

be

construc¬
a

crisis,

the contrary is an
orderly
to
a
volume
which

maintained

however,

naJu,ral and dff,irable' mistaken in
pose

our

that there

market

in

the

that

market,

the

limita¬

the VA and FHA contract

have

can

only

effect—

one

the drying up of
mortgage funds
available under government guar¬
anteed or insured contracts.

Homebuilders
should have
with

other

and

borrowers

the

with

bid

for

practical

on
discounting, pre¬
building industry from

fair chance at available

a

funds.
I

to

The interest rate

along

limitations
vents

homebuyers

equal opportunity

an

available funds.

maximum,

'

'

have

into

gone

situation in

some

know that this is

in

economy

ticularly

•

■

housing

the

detail because I
a

segment of the

which

par¬

are

you

interested.
the

to

let's

Now

specific ques¬
of
housing

more

volume

be

expected in 1957?. I
housing output dur¬
ing the coming year will be main¬
tained close to the 1,100,000 start
level. Because of rising prices
and
the
increasing size of the
average home, spending on new
residential construction is likely
believe

to rise

that

by about

Housing

one

billion dollars.

future.
we

are

estimates. Sup-

is actually a real
demand
in
this country

Spending

Up

Go

to

During the coming year, we are
thus likely to see a rapidly ex¬
panding economy, with prices un¬
fortunately also rising. Housing
output will remain at about the
present .level,
but spending on
residential construction will be up
about $1 billion. What does

for

mean

Will

the

the

all this

market?

mortgage

funds

necessary

to

fi¬

billion of additional
home
spending
be
forthcoming
fairly readily? Or is there likely
the $1

nance

to be

a

ket,

with

further strain

on

this mar¬

rates -continuing

up¬

ward?
To

answer

first

market

as

is

market

recent

the

volume

does

Tight

Period

reasons

time

some

control which

inexcusably discriminatory and
which has hurt, and will continue
to
hurt, the housing
industry.

must

No

for

one

is

rcason-

studies at Prudential. Long before
the recent decline in housing vol¬

of

Rate

believe, however, that the

can

have

Further

Ceiling

starts

demands

accumulated in

dustry- All of this

very little real
thinking has been done in an at-

within

What

to

but unf°rtunately

consumer

economy

tion:

unsatisfied

R.

£e?n

to

the

automobiles,

more

way

having
a

homes

new

adjustment

has

with

like
are

are

capital and

which

tight money policy. So"emergency meetings"
have been held in the building inconcern

would

trying to build
factories, more roads, more

return

I

disregarding

housing,

satisfied

it

price rises

we

family
formation, with the prosoerity of
the economy, with the degree to

Sees

called

704

'

rate,

the demand for homes five years
from now will not be greater; it

choking off a vital
segment of the economy. The Administration
has
been
charged

inS funds and

to
are

funds bidding for our output.

know

have

future

to

1,100,000,
1,300,000 in 1955.

have
in

which

®t.orm ofJ.pf?test;v,W.e h?ve heard
dire predictions that unless some-

for

MILWAUKEE, Wis.—William
Greiling, Jr., has been
the

in

below

amount

might

Portant

have

year

Reserve Board has been attacked

CC

Eco-,

For d

Company. He joined First
office*
offices

*

with

an

the

this

needs of the

I

I

articles

with

j

joined

Building.

,

and

with

branch
bianch

x

Wnston

in'Economics
Finance

universities

Analyst

oreanUed
£

King Merntt

PORTLAND, Maine—Roscoe

the

there

and

thing is done, the rate of starts
Will fall to 800,000 or even 500,000. The mortgage lending indUS-

(8pecia! to The Financial Chronicle)

....

been

Mortgage

.

First of Michigan Corporation. He
received a Masters Degree from

Economics

the

.

With

Detroit
of

to

has
....

Manager

000

months

compared to
E.

Company, 23 North Minnesota St.
d

re¬

been Sales

end

Avenue,

ULM, Minn.—Herbert

Hensley

and

to 1,200,been three

„

(Special to The Financial Chronicle)

Michigan.

office

,A,

signal that

housing starts. As the

of

look into a]1

nls,-dec*Jn? continued all through

we

the

be

than

Current

flation

attempt to estimate what volume

to decline slowly but steadily, and

With State Bond &
Mtge.

Illinois,

Indiana

m

n

late

NEW

ket.

annual

of 1,478,000, and in January,

Total

states

e

homes

xxix

Reason

°7uT
1,400,000. In the following months,

South.

Fund

in

.

year

have.

only

however, the rate of starts began

Cr

connected with Reyn-

is

record

In December,
1954,
being started at an
.

were

J

Keynoids otsrr

MINNEAPOLIS,
olds

and

Income

the

c.

all-time

including
must

funds

government

varies

the

At

months

runaway

been

This

rate

as

In¬

vestors

cently

Detroit

(Speciai to Tat financial Chronicle)

D

Incorporated
t h

to

..

Incorpo¬

of

•

N. Battis

wholesale

rated

expected situa-

housing market?

Started

jt-.i-x

Manager for that office.

loins

as

Parker

representative
of

„.TT

returning

I

Corporation is announced. He will
serve

the

Expects 1.1 Million Houses

1950.
.

company in Port Huron and Flint

W. H, Morris V.-P.
DETROIT, Mich.

alter the

prosperous.

Sole

not

limit to the number of

ment

of

a

industry,
industry,

duce

vigorous and

industry? Further, what steps, if
should be taken by govern-

any,

since

i

booming

a

three

policy. If

money

than the

will be less than

sac¬

rificing yield.
for

In this framework of

why any investor should forego the op¬
substantially on his income tax bill for 1956,

save

you

inflation and violent
speculacan
be averted.

tion

reason

portunity to
can

out

last

be disastrous to turn

easy

avoid

other

economy and rising prices, what
is likely to happen to the
housing

A Service for Your Client
If

Perhaps the
hoped for is that

be

tight money policy will curb
spending sufficiently so that all-

in the improved market

1992.

can

rate

than I, there has been
a
rapid and a very substantial
increase in the price of homes in
the postwar period—an increase
that has far outstripped the in¬
crease in the general cost of liv¬
ing. When the price of a product
rises
substantially
faster
than
average family income, as homes
have done, it is obvious that more
and more potential home-buyers
are being priced out of the mar¬

be

the

best that

an

better

efforts

it

would

it

to

very

by

can

rises

the

preceding three years,
and further price increases are in
sight. Under these circumstances,

homes,

members

seriously inflationary

that

in

more

more

the rate of

In

physical

Reserve,

doubtful

present

place, tight money
certainly not the only reason
why there has been a reduction in

at present

are

the

construction

In the second

happen to prices,
we

extremely

is

probably

situation. Despite the best
of
the
Federal

it is interesting to note the divergence of investment quality
and status, and the
similarity of yield and price range in many

ever,

of

must

afraid that

am

our

residential

new

Tight Money

economist to figure

an

this country

an

than in the

sion. It is

3.5%, or by $14 billion in
prices. If spending ac¬
tually increases by over $20 bil¬
lion, as I expect it to do, it does
not

99V2

86

_

New

100

82

with

inflationary situation. The cost of
living index has already advanced

try is not experiencing a depres¬

constant

Approx. Recent

faced

The first point to get
in mind is therefore that

that

services

be

clearly

about

TURNPIKE
ISSUE—

been

year

answer

emphatic

less

years

large

billion.

our

in

coming

In the

will

the residential construction indus¬

produced

year, we will

to

present

have

housing in¬

an

"no."

spending.

States, is at present

around

running

the

services

the

There

the amount of money spent

exceeded

which I have pictured. The Gross
National Product, i.e. the value of
in the United

place,

rate.

is

boom in the
coming year we must maintain a
tight curb on the economy. Every

on

activity next year, I am neverthe¬
less seriously concerned about the
effect

in-

question

when

in

economic

our

are

this

to

history1950, 1954, and 1955—when pri¬
vately
financed ' housing
starts
have
exceeded
1,100,000.
There
has been-on»ly one year—1955—

While
I
do
not
have
many
doubts about the level of business

This offers

shown

proportions

which

1,100,000 housing starts is

low

a

only three

system.

not

The Federal

strain

ductive

their proper place in the market evaluation

the future.

5lri"g
rise in

the

briefly discuss

very

issues

first

the
of

not

is therefore of

year

substantial

very

bond

1956

In
rate

seen

expected increase

me

the

of

some

spending has been only $6.5

billion.

in

housing
has there been much

nor

whole. Let

clearly

do this without sacrificing

can

contributed to the decline in Turnpike
obligations. The tight money situation and the over-all advance in
.

more

decline

volved.

ing year is likely to rise by over
$20 billion. The magnitude of this

opportunity to reduce his

the

effort to stimulate the

dustry? I believe that the

basic

an
attempt
to
consider the
housing situation in relation to
the problems of the economy as a

Inflationary Prospect

fact that the decline has been
general over the entire list of Turn¬

for

the

of

Total spending during the com-

very

understand

output,

rate

than during the boom of 1955.

bought these

to

causes

His spending will

one.

but

1957 will be

tempt

■

market

further, should the tight money
policy of the Federal Reserve be
relaxed, and should government
provide further new funds in an

Business,
Housing, Mortgage Market

At the present time, the public
reportedly holds about $4 bil¬
lion in Turnpike bonds. These bonds have been
originally offered

1,100,-

should down payments be lowered

1957 Ontlook for

By JOHN BUTTON

Tax Switch

than

more

annually. In that case,

homes

000

Securities Salesman's Corner

Thursday, November 8, 1956

these

turn
a

questions, we
to
the
capital

whole. The mortgage
not

an

isolated

affected only by
the rate of housing starts and the
turnover of existing homes. It is
instead a submarket—a part of the
total market for long-term funds.
Because of the ability of lenders,
and borrowers, to shift out of one
money

market,

submarket
sponse to

into

another

in

re¬

varying needs and vary~

ing interest rate differentials, the
mortgage
market
is
very
much

Number 5584

184

Volume

The Commercial and Financial Chronicle

for. othef. types of
funds: What,''.then, is

market

-

uebt to tne Federal Reserve and
the! situation in the unable to expand operations witherall capital mantel during the out further reserves,
coming year?
.
.
From tne foregoing analysis we
The increase of over $20 billion
can conclude that the capital mar"htal spending during 1957 may ket picture in 1957 win be very
i oartiaily accomplished through 'similar to the capital market picfurther increase in the velocity, ture of 1856. Lemand for funds
3
turnover, of money. People may
will be $3 billion higner and sav•rnnlv mane more extensive use
ings will be $3 billion higher.: But
f the
supply of funds already . savings will • still be - $o pillion
mailable. But it is obvious that, short of supplying total demand,
ith
business activity
moving and the baiiKS wiu-be in no better
head
strongly,
with business position to make up this aefir
I nt and equipment expenditure ,ciency
than they have been in
urograms continuing to advance,recent months.
V term

•i

Our

be

to

rtplv

(1985)

year 1957 in just the same position
as they started- 1956*—heavily in

what is happening in

ted by

,,

fS.

...

-

increase

$37

_

_

•

-the>iwo

Deficiency

While

will

for

demand

the

money

leading ex¬
changes, have

r

announced the

[

bought, with coroothe principal takers of the most liquid Treasury obli-1

consolidation

The substitution of

of

holdings is still

as

strong

attractive new offerings of
corporates, and

with the

as ever,

ment securities.

'

market"

into

'markeis.

Some investors, such

such

commercial banks

conclusion would

a

important

•very

fact

ignore

about

a;

the

attractiveness

known the ter^s

of

a

-ought

Illoway,

ance

the

of

nicipal,

distant maturities of

more

are

inclined

not

tractive side."

One of the

reasons

has

into

come

some

of

being termed the "at¬

ana

Ine

rapidly, have been forced to sell certain of their holdings of

needed funds

This

it

is

clear

1957,

that

again,

once

will be faced

we

with

gages-and shift a portion- of their *
investment flow to those markets,

present year,
banking system will be called

elude

be sufficient to presoftening in mortgage

loan

any

$5 billion of extra.
in order to make up the-

money

deficiency

in

savings.

The trueduring

test of the
capital market
the

coming

will

a

this

mber

A

glance

statement

at

of

the

consolidated

oanking system

indicates

mat,

Federal

unless

mates

a

reserves
ations
e

the

substantial

the

of

clearly
Reserve

amount

of

through open market opduring the coming year,

commercial banks will not be
t0

SUPPly the extra funds de-

funds

exceeding

own

business

*n debt to

the Federal '-their backs

on

mnvfu Banks by $500 million take the "easy money" course.e
e "-nan the amount of their May I appeal to each one of you
suph
reserves. In a situation tto do everything you can to supn^asthis, the banks
thpir
DanKS

can
can

.

.Posits
Rpqov
ln*°
veThe

expand
expanci

by
by

going
going
Federal
Federal
The
Federal
Boara'u
AUC
.rfc?aeral Reserve
Reserve
thi.
,s continued throughout
in
-year to hold the banks
tion
1]?^adve tree reserve posiDrpc'o,
mWc,
exerting tremendous
& °4? .them to curb their
lenriin«G
t0
month?
In the remaining
the Fori
year> 1 believe that
somp ?o
Reserve will supply
dppn

only

the

-

v

,

a

the reaerai iteseive m its
tne Federal Reserve in jid
efforts to ' curb spending in the
coming year. By doing so you will
not only be guarding the buying
power of your own incomes; you
will also be making sure that the
boom of root is not followed by
Doom oi 1957
hul J"1
the depression of 1958.

port

With Slaytcn

& Thayer

i

ket

f-ves throu§h

nn

Perahons.

SDarin«r~

banlrc

But

it

open marwill
wiu

do
ao

so

so

*iiS0 Bla* fr*e commercial

wnl

undoubtedly start the




with

that they will be

so

(Special to The Financial

Chronicle)

ALTON, 111— Delbert E.

Walms-

rank, of Col.

a

as

r

of
<

»

is now connected
Adolph G. Thorsen, 735 North

Sauer Opens

business

far

SAN

institutions have already taken care of their tax
Government obligations are concerned. The inter¬
longer maturities, according to advices, are being

E

"on

Mill

Gorey

St.

■

FRANCISCO, Calif.—Chas.

B. Rhodes has

been

added to the

staff of Walter C. Gorey

Co., Russ

Building.

obtained from the sale of the most

U.S. TREASURY

Treasury's Forthcoming Financing

on

offices

from

Joins Walter

as

and

Office

(Special to The Financial Chronicle)

close, there will be an increase in tax .swaps/although

it is expected that the Treas¬

STATE, MUNICIPAL

will be announcing within the next few days the terms for the
refunding of the 2%% certificates which come due on Dec. 1, as
as the issue or issues that will be used in the new money rais¬

ing operation. It is believed that the

and

refunding and the new money

offering terms will be announced at the same time, with the 2%%
certificates being rolled over, while the cash needs of the Treas¬

PUBLIC REVENUE

expected to be either $1,500 million or $1,600 million. A
two-prong offering is being talked about in certain quarters of the
money market, with a certificate, along with tax anticipation secu¬
are

ury

rities due

,about June 22, 1957.

offered to.holders of the

the

partner

MENDON, N. Y. —Howard A.
Sauer is engaging in a securities

ury

.

a

Water Street.

well

or

sound policies and

to

Views

spr

y were

them

became

Breitengross

Switching Operations Continue

With the election out of the way,

who, either because they do not
realize the explosive nature of the
current situation or because they

Thi
the capital market, political interests as more imporvparCi°o?mercial bankS began the tant than the welfare oh the nation;
with negative free re- are bringing strong pressure on
thpr °t $500 million. That is, our monetary agencies to turn
t>

to be put on

he

MILWAUKEE, Wis.—Oswold E.

"because it could be important

securities is concerned, as well as

the defensive.

great many

the

supply of savings, any easing in
tight rein on credit would be
disastrous.
Yet there are those

their

new.

the money which has been
distant Treasury obligations.

the

consider

of

pretty much within their respective maturities, even
though the 1961 and 1963 maturities have been attracting some of

this is true. In a situation
such as that facing the country
today, with spending outstripping
productive capacity and the defor

1948

With A. G. Thorsen

switched

though this were one factor which*
could be taken for granted. I hope

mand

Army and left serv¬

as

on

mediates

that

condition

well

Tax

losses

policy of the Federal Reserve as

I f ?ow" on
Bank Credit

as

nearer

talk, referred to the tight money

M.mi

the

1946 with the

(Special to The Financial Chronicle)

According to reports, there is a pick-up in tax switches within
the Government list itself, in spite of the inactivity and absence of
interest in these, issues.„ It is expected that as the year draws

Federal Reserve *■ •

I have, during the course of

therefore

^

narrow

bow far it might go,

see

v.

•

•

revolve about the
capacity of the
commercial banks to supply this
extra $5 billion.
i

year

ice in

quickly via the sale of Government issues.

the flotation

as

securities

•

Appeal for Firm Support for
-

entered

Investors. The competition,i'rom new security offer¬
the competition flom the sale of the older outstand¬
ing bonds by institutions, will no doubt tend to keep Government

rates,

upon to create

In 1941 Mr. Illoway

Philadelphia.

the mortgage

market will

corporate bond fi¬
than 20 years.

more

the Chase National
Bank,
joining A. Webster- Dough¬
erty & Co. and Reynolds & Co. in

attractive- to

have
shown! therelative gain. This out-.

greatest

tlow of funds from

far

ings

yields

where

in

billion deficiency in capital funds,
Once again, as in the
the

but also in
cut down the*
going to -mort-

$5

a»

for

with

development in the bond market will bear watching

new

the rate which - will have

the demand for funds,

Aspden,

later

pared with those of corporate securities, it is not easy to obtain

as:

msur-t

amount of money

as

form

Aspden, Robinson & Co.

as

much

to

In

in order to

as

1946

& Co.

Illoway has been prominent

market in these issues, and
the less attractive Yield of the Treasury obligations when com-

other markets, will

meeting the demand for capital funds. If savings
in the coming year, increase
only

Mr.

long-term Government securities have also been cut down somewhatj but due to the thin .and

the mortgage market,

of

associated

graduated from Chestnut Hill
Academy in 1929 and Harvard
University
in
1933.
Following
graduation he became associated

securities. Positions in short-term Government obligations, accord¬

the

billion short

was

m

more

He

Stringency Still Emphatic-

present

capital market In 1956,
supply of/savings will fall $5

in

in the field of

ing to advices, had been previously liquidated. " The holdings of

who" operate- in

companies,

He

years.

nancing

mortgage

ef¬

their

Robinson

non-Treasury bonds.
Credit

is

1956.

municipal bond field for

ter firm

already outstanding bonds by

-

-

consolidation

1,

Guaranty Co. of New York
Philadelphia office until
1934 when he joined A. Webster
Dougherty & Co. He left the lat¬

in

institutions that have been pressed for funds and, in order to get
them

Robinsoa

corporate

with

unless

for this kind of attitude towards

the

S.

and

Mr. Robinson has been active

than 25

offerings of. corporate bonds, in particular, is the liquidation

new

The
Nov.

the

issues of non-Gov¬

new

make commitments

to

the yields are considered to be on what is

Ellwood

mu¬

revenue

bonds.

buyers into these obligations.

new

ernment securities

investment-

other

spe¬

cialists in

Nonetheless, it is evident that those who have funds for in¬

small yet steady flow

out

S.

and

Lawrence B.

?;§ interested in long-term corporate and tax exempt securities has

'

funds

of.

Ellwood

Robinson

Very Yield Conscious

fective

vestments, there-will undoubtedly
be in 1957

under

direction

the

The higher yields which have been available to those that

vestment in the

a

depart¬

ment

raising operation in theAn optional offering is being looked for.

The market for fixed income bearing obligations is still in a

in—

-alternative

of

&

& Co. and the

This indicates the tight money policy of the powers that be, is
billion in the com- markets. All capital markets will'4
evidently having an effect upon the availability of credit as far as
ing year, there will also be an.be tight, but mortgages will not
(certain large, institutional lenders are concerned. It is reported
increase in the volume of savings command as large a gross 'yieldsthat, in not a few instances, in order to make money readily avail¬
available to satisfy this demand. - differentialover
otherinvestable to those to.whom-they have been already committed, institu¬
And the increase in
savings in ments as is sometimes the case."
tions have had to liquidate some of their holdings of corporate
1957 is likely to be
just- about Because of the increasing relative"

equal to the increase in demand
With savings and borrowing both rising by $3 billion,
it might at first glance be coneluded that the capital market in
1957 will present no problem. But*

e n,

formation of

somewhat confused state, in spite of the favorable reception which
has been given to certain of the recent new offerings of corporate

which

keep die 1957 mortgage mar-tight, than, other money

d

ington, Colket

will rise by $3

for funds.

p

Co. with Pen-

bond

Investors

bonds,

s

,

It is expected that the Treasury will make
of its combined
refunding and new money

very near future.

A

Robinson

to a lesser extent tax

exempts, taking the play away from the more distant maturities of
Governments. Sales by im-'.itutional owners of the older outstand¬
ing non-Treasury bonds have also added to the woes of Govern¬

less

ket

Stock

York

Nevertheless, those that have funds are very
largely on the sideline. The exception is

South

123

Co.,

&

Street, members of the New
Exchange and other

Broad

gations.

above

mentioned

Colket

ton,

The
there is less ten¬

means

rations still

of

influence

the

tnat

factors

subsided, which

that the near-term issues continue to be well

Money Will Be TiSht •

believe

I

.

Supply

Capital

$5 Billion

to have

seems

'

PHILADELPHIA, Pa.—Pening-

much inclined to remain

thus providing increased funds to
a market whose demand will- be
up only slightly.

$34 billion in 1956
billion in 1957—an
of $3 billion.

from

scare

sion in the market.

Now, finally, what does this
mean for the mortgage market?
It means first of all that mortgage
money will be* tight, since this. ;
will be tremendous. Of all major submarket will of course reflect :
borrowers, the only agency which
conditions in the overall capital
will not be pressing
for more market. But over and above this
funds in 1957 will be the Federal. general picture, are there not spe^
Government. The Federal Gov- cial influences which may make
ernment is likely to show a cash the degree of tightness in the mortsurplus of as much as $5 billion gage market anierent from that;
and the repayment of this much of ' in the capital market as a whole?
'the public debt will relieve some There is, for instance the fact that
of the strain on the capital marhousing will not expand in 1956 as
ket But even with this alleviating last-as the rest of the economy,
factor, the total net new demand Secondly, there ? is the fact that
for long-term capital funds over savings flowing*' into institutions
and above that supplied by re- < which traditionally invest in the ,
payments of existing debt is likely mortgage market will rise in 1957,
rise

Penington, Gclket

the defensive and

on

of the marketable issues.

many

war

and with state and local
Government- spending rising even
more than in previous years, the
demand for net new funds in 19j7

to about

Governments

on

The Government market continues to be
this has brought new lows to

increase

to

Aspden, Rcbinscn Go.
Merges With

By JOHN T. CHIPPENDALE, JR.

.

;"Mort,«e

Reporter

21

maturing 2%% certificates as well as for

raising operation.

money

new

SECURITIES

The issues, some believe, will be

Banks, the largest
take a one-year maturity,
whereas the shorter tax anticipation issue would appeal to other
holders. It is believed the new money securities will be payable
It

owners

is

believed

of

the

again, through

that

2%s

the

which should make

.'

the

of Dec.

tax

and

Federal

loan

account in commercial banks,

the rate more favorable to the Treasury.

(Special to The Financial Chronicle)

Chronicle)

CHICAGO, 111.—Cecil J. Downs
has become associated with Wal¬
&

Co.,

Salle Street.

merly
Bache

Inc.,

231

South

Aubhey G. Lanstow

With Daniel Reeves

Joins Walston Co.

(Special to The Financial

ston

Reserve

1, would

La

Mr. Downs was for¬

with Reynolds & Co. and
& Co. In the past he was

ley has' become affiliated with
in the investment business in Los
Slayton & Thayer, Hotel StratAngeles.
ford Building.

BEVERLY

George

L.

HILLS,

Mair

has

& Co.

Calif.—
been

added

INCORPORATED

15 BROAD

ST., NEW YORK f

WHitehall 3-1200

to

the

staff

of

Daniel

Reeves

&
231 So. La Salle Su

Co.,

398

members
Los

South

Beverly

of

New

the

Drive,

York

and

Angeles Stock Exchanges.

45 Milk St.

CHICAGO 4

BOSTON f

ST 2-9490

HA 6-6461

22

The Commercial and Financial Chronicle...

(1986)

With Paine, Webber
■

BOSTON,

Driscoll

Mass.

is

Charles

—

affiliated

now

Continued from first

American Shares, in reporting to disfavor.
National Distillers, no
of < its further ex¬
stockholders, has this to say:
•
> doubt because
"On a shorter term basis, stock pansion in the chemical field, was
prices do not seem to be placing bought.

page

D.

with

Funds

Paine, Webber, Jackson & Curtis,

Broadly Retrench

24 Federal Street.

unreasonable
current

Into Defensive Assets

With King Merritt Co.
G. Mosser is
ritt

and

now

Company,

24 Julia

Inc.,

curities

Street.

have

The defensive attitude of many

managements

also highlighted
by the diminished proportions of
was

overall new acquisitions
to-junior equities in the

Investors

Mutual

purchases

Investors

(L4%),

of

New England

channelled

was

a

5.6%

mere

into

common

stocks.

Fund i
ORGANIZED
1

*

Again,

Eaton

anced Fund

&

Howard

bought only
Electric

Bal¬
stock

one

&

Power)
while reducing its holdings in 28
other equity issues, the
liquida¬
tion
being concentrated in util¬
ities, natural gas, motors, chemi¬

.

cals,
rubbers
Loomis-Sayles

and

few

a

oils.

purchased

five

Coffin & Burr
Incorporated

BOSTON
NEW

YORK

PORTLAND

HARTFORD

BANGOR

The

in

advanced

bonds

non

government

-

the

mat

au.ua!

Fund

fund

^

of

securities

the

other

the

some

man¬

Adams-American In¬

as

ternational

hand,

and

Wisconsin

increased

quarter

during

the

pro¬

Words

The

generally

siasm

for

market
a

of

common

where

the

found

statement

lessened

equity
its

enthu¬

of

area

into

way

the

many

from

management.
Fitzsimmons
and
Brad¬

Messrs.

of Investors Mutual

cite

the

of

rising bond yields on
the vulnerability of
equities. W.
Linton Nelson,
President, in ex¬
plaining the shift into govern¬
ments

Delaware

by

cites

the

marked

Fund,

rise

Inc.,

in

their

yield;

also

East
situation; and
competition
with
nar¬
profit margins in the chem¬

voicing

a

concern

over

Middle

be expected.

larly,

food

each

fund
your

is

available

from

investment

dealer.

of

200

Berkeley Street

Boston, Mass.

F.

Simi¬

Randolph,

Tri-Continental,

ferring to its reduction in the
portion
ment,

of

common

asserted

attractiveness
The Parker Corporation

industries.

Francis

Chairman

bonds and

a

even

in the

tendency to be

-

This

stocks.

is

common

un¬

reaching

evidenced

tne

forced

higher.
stock purchases as

were made
by "Tri" were impor¬
tantly concentrated in utilities and

M. I. T.

issues.

for

Such

(21,500 shares) and by the
(14,000 shares).

particularly

Industry

Groups

the

other

hand, buying

was

the

part

of

get

the

greatest

evaluation

Manufacturers

and

Mutual

benefit

of

oils

was
varied—particularly in¬
teresting, because of the political

crisis in

Groups Sold

and

to

stocks since its

productivity,
a
prospective squeeze in profit
margins, and increased political
and

over

In the case of the food

"Bullish"

Expressions

term

to

addenda

statements,

to

some

decline

in

automobile

sold

were

the

man¬

In

the

to

contrast

bearish

atti¬

tude

displayed toward the abovecited
groups,
heavy and wide¬
spread buying flowed intoj the
constructive

Such

action

apparently followed growin| be¬
lief that this industry has lost its
cyclical
sistant

character;

caveat

mental

Street's

against

"The

Investors:

con-

tradi¬

bearishness

Said

strikes.

of

being

as

Wall

with

Funda¬
manage¬

three

by

companies ment of the Fund took advantage
(which included a complete elimi¬ of depressed prices of steel se¬
nation of a 100,000 shareholding curities
during the mid-summer
by Investors Mutual); with only steel strike to effect substantial
I

I.

M.

one

T.

on

to the tune of
Airlines

the

buying side,

7,600 shares.

Lightened
exceeded

the

airline

group,

purchases

which

con¬

ity during the previous quarter.
Liquidation prevailed in Ameri¬
can
Airlines, Delta, Capital, and
United.
Only Eastern and
Pan
American

affirmation

than

Drinks

S.

holdings."

As

managements pur¬
Steel
aggregating

shares,

in

including Well¬
thd amount of

ington

Fund

63,000

shares, Fundamental In¬
with 30,000 and M. I. T.

vestors
with

whatever

sales

No

20,000.

discernible.

were

three

Among

the

buying Re¬
public Steel was Wellington Fund
buying in the amount of 71,400 shares.
managements

selling.

Soft

13

U.

152,600

also

steel

in

as

chased

Sales

agements have expressed outright

increases
many

trasted v/ith this group's popular¬

frequent longer-

constructive

"bearish"

the

Strong Buying of the Steels

because

in

addition

industry,

uniform, liquidation predominated.

tional

international uncertainties.

In

Exceed Bay¬

although action was by no means

steels.

finance company holdings
lightened during the quarter.
108,000 shares of C. I. T. Financial

incep¬

of wage and

excess

Selling

ers

sales,

Price, President of the
fund bearing his name, explain¬
ing the lowest percentage placed

costs

Investors

out.

Sellers

Share

Food

were

the

T. Rowe

common

the Middle East.

Finance Companies Liquidated

changing prices."

in

by

closed

was

Groups Bought

Policy toward the international

on

management

your

buying

glass

calls

searching

investment

careful

exceeded

volume

Sales

A total 42,000
shareholding of United Merchants

Apparently reflecting economic
and factors, namely, rising money rates

period

a

situa¬

Fund

United

leum.

wide difference in action of vari¬
ous

the

in the textile group.

the

in

reversing

during the previous quarter,
met liquidation. American Tobac¬
co
was completely
eliminated by
tion

automotive,
building, ribean sugars, such as Cubanand
container, American and West Indies. Gen¬
electrical
equipment
and
elec¬ eral
Foods, General Mills, and
tronics, insurance, aluminum, cop¬
Campbell Soup also attracted some
per, natural gas, office equipment,
buyers.
0?
#
#
railroads, retail trade, rubber and
tire, public utilities, and petro¬

dimensions, is seek¬
ing true relative values between
industrial groups and individual

pro¬

as

buyers.

no

Tobaccos,

groups:

new
balances after the great
changes which have occurred. The
stock market, after a general rise

re¬

income

preferred stocks

tightening money market
interest and dividend rates
Such

be

20th

heavily

sold, the former by six manage¬
ments to the tune of 26,200 shares,

for

increasing

fixed

to

seems

for

possible
*

*

airlines, soft drinks, sales
motion picture, textile,
and, to some extent, food.

chemical,

activity of its various

It

been

and

quite

were

most
emphatically
Exposed to selling were Allied
steels; as well as in aircraft
Mills, Continental Baking, Stand¬
manufacturing, banks, coal, ma¬
ard Brands, Swift, United Fruit,
chinery, drugs paper, radio-TV,
and
National Biscuit
(of which
railroad equipment, farm equip¬
Wellington Fund sold its entire
ment.
holding of 28,000 shares). Revived
Changes were mixed in these interest was manifested in Car-

econ¬

shows

invest¬

stock

the

of

The

attractive

Pictures

Century-Fox

in the

gains
another

omy

sections.

of

concentrated

period,

before

necessary

can

material

and

On

extension of broad upward move¬

tion, cites the

ical

tobacco

consolidation of

rowed

on

groups:

prolonged rise of stock
with a prosperous
point has been reached

some

has

Toward

finance,

pace

greater

prospectus

of

of substantial

Caution

the

A

in¬

shortage

Disfavor

Paramount

Analysis
of
actual
portfolio also outweighed buying in Ameri¬
changes reveals that the impact of can Viscose, Dividend Shares (in
the prevalent
defensive policies the Bullock Group) eliminating a
was felt through liquidation large¬
12,000-share block.
ly
in
the
following
industry

20

believed

was

bought during the
explained:

seems

impact

icome

Policy

and

"After

Trustees

time."
*

taken

of the higher

present

the

more

a

for

over

than it

ment

ford

icorporated

was

primarily because it

than

some

which could be secured but

prices, in

liquidation

portion of assets held in

%CurmGROWTH of

in

action

partly because
come

economy, a

whereas

stocks.

possible

for

a

quality

top

on

Movies, Tobaccos, and Textiles in

with

George Putnam,

of

cur¬

available

been

This

months,

agements

.

of

market levels, was con¬
during the past quarter. In
fact not a single share has been
bought
during
the
first
nine

On

T

have

years.

$22,100,000, including
$6,100,000 in the September quar¬

Established 1925'
mutual fund *ith a
>rTfoUo of securities

basis

common

high grade bonds "which

which

Chairman

curities

rently provide the highest yields

ter.

Investors

Fund, in

its

reduced

minimal,

general we
are
inclined to view the present
period as one of opportunity to
invest in the carefully selected se¬

ident, Messrs. D. T. Johnston and
M.
J.
von
der
Heyde, late in

August

been

the Putnam Fund: "In

%

Mutual

Johnston

can

Likewise from
the

the words of its Chairman and Pres¬

amounted to

Incorporated

predominated.

Yields

upon

brokers' loans."

rising interest rates
stocks, while liquidating
16 issues.
may
eventually result in some
slackening in the present high rate
United
States'
and
Foreign's of industrial
activity."
policy of realizing securities prof¬
President Milan D. Popovic of
its, accompanied by their distri¬
Blue Ridge, which fund sold more
bution
to
the
stockholders,
at
tinued

Founded 1899

Kaiser

as

Switching Into Attractive Bond

credit

common

National Distributor

well

as

stocks, and invested the proceeds

(Virginia

1931

Aluminum

Yri-

sales made by

over

Mutual,

stocks; while on the selling

side several oils

valuations

prospective earnings
Speculation in se¬
properly be said to

if one may
judge by the moderate amount of

devoted
cases

Continental (27%), Scudder, Stev¬
ens & Clark
(26%). In fact, of the
net

bank

or

and dividends.

JACKSONVILLE,

Fla.—Horace
with King Mer¬

Thursday, November 8, 1956

fidence.
P.

of

For

Rubin,

near-term

of

attracted

more

Armco

example,

President

con¬

Edward
Selected

Beverage
ada

Sold

,

stocks,

buying
Can¬

Dry and Pepsi-Cola, were in

of

four
new

notably

attracted

by

eight

them

49,500-share
managements,
completely
The
largest

making

commitments.

Ctmmiwili
INVESTMENT

A balanced mutual fund
over

300

bonds, preferred and

stocks selected to

common

provide reasonable current

income with conservation and the
of

is

a

mutual investment fund of diversified

common

common

stocks selected for investment

CALVIN BULLOCK, LTD.
Established 1894
ONE WALL ST REET. NEW YORK 5

Address




RESERVES:

investing in diversified

INCOME:

stocks of well-established

objectives of

Series B-l

GROWTH:

Series B-2, B-3, B-A,

i

Wholesale

v

'

A

ana

J a,

Ltd.

fully managed Canadian

long-term

Company seeking

CAPITAL GROWTH

your

Canadian LawJ

local investment dealer

or

Xke

the above

since 1925"

Representatives! Boston
•Chicago •Dallas* Los Angeles • New York •Washington, D.C.

50

or

Keystone Company of Boston

Congress 5tre<t

and

under

COMPANY

Investment Dealers

"Investment Company Managers

fC

Fun1

certain TAX BENEFITS

iSeries K-2, 5-3, 5-4

Prospectus from
M.noge4 and Distribute by NORTH AMERICAN SECURITIES
680 Buss Building • San Francisco 4

o

Investment

K-l, 5-1 and 5-2

long-term growth of income and principal.

Prospectuses available from
Name

Vitk the investment

FUND

companies selected for the possibility of

quality and income possibilities. Mail
this ad for free book let-prospect us to

eystone

Custodian Funds

CoMHmiwffli
STOCK

eystone

possibility

long-term growth of principal.

A mutual fund

V

COMPANY

investing in

Boston 9, JMass.

Number 5584.

284

olume

Jones

Securities!-Stock 1 Fund,

ional

.(11,500-shares).. ...
of the so-called

I Armco

&

absent, in the three last-mentioned from
issues.

Equipments, Aircrafts

Deere

vester

bought by 5

an

the

aggregate

American

manage¬

of

45,000

and

International

farm

Har¬

equipments at¬

good-sized

buying.

The

from

tirely

new

shares.

Business-

Fund

Most of the buying
came

were,

tracting

absorbed Crucible,

also

Fa¬

vored

selling.

ds

was

in

Shares—Affiliated

Farm

lit candidates," also attracted
lie-disregarding buying by
lt managements,
with three
three
luyers

ments

Cliffs; with liquidation completely
shares, of which 29,000 originated'

ethlehem, one

23

(1987)

Laughlin, National, In¬ former

Only -one 'fund,' land, Youngstown, and' Cleveland-

shares.

inn

M. I. T. with

was

buyer

,ia

The Commercial and Financial Chronicle

. .

in Harvester

M. I. T.,

with

an

en¬

commitment of 50,000

On the other

liquidation

group.

took

hand, heavy

place

in

Chalmers (51,400 shares
managements).
^
The

siderable

i!

con¬

::
Boeing,
::

action.

bullish

by 5

elicited

aircrafts also

Curtis

s-Wright, and Glenn L.
Martin were heavily bought, with
no selling evidenced.
Buying ex¬
ceeded selling also in Bell, Doug¬
las, Lockheed, McDonnell and
on

page

£7Ae
~SeoK<jpe

5"

t

f

II'

(

::
<►
**

PUTNAM

*>

<►

4*
4>

Continued

Allis-

,

4*

25

4*
<►

|.

FUND

- j

*

Balance Between Gash and Investments of 73 Investment

>

End

of

Quarterly Periods June and September

Companies

Net Cash ft Governments

Thousands of Dollars

Per Cent of Net Assets

<

-End of

-End of

June

Sept.

June

5,155
4,501
1,665

20.1

17,5

'28,5

11.8

9.8

41.8

4.1

2.6

27.8

615

2.2

8.8

1,416
8,236

694

9.2

5.9

9,525

,5.5

6.6

If 28.1.

27

,20

4.6

3.6

14.3

19.0

81.1

1,337
9,673
1,065

1,267
8,355
1,935

1.5

1.4

16.1

17.7

82.4

8.2

7.4

18.0

18.9

73.8

1.7

3.0

24.8

24.6

73.5

361

8.5

7.4

21.4

23.7

70.1

68.9

9,025

11,655

5.1

6.8

23.9

25.2

71.0

68.0

287

8.3

8.7

12.8

12.2

78.9

79.1

504

;__

June

163

—

417

6.0

5.1

20.0

20.4

74.0

74.5

.r
;_

.

__

—_

Commonwealth Investment
Diversified Investment Fund—

___

—

Dodge & Cox Fund—
Eaton & Howard Balanced Fund

Investors

End of

E

Sept.

279

—

Bowling Green Fund-——Broad Street Investing—

General

Per Cent of Net Assets

6,212
5,619
3,567

—_

Trust..

June

Sept.

32.7

51.4

49.8

41.1

.46.4

49.1

23.3

68.1

74.1

27.6

27.6

70.2

63.6

23.4

24.2

67.4

69.9

Sept.

1[27.5

;

♦

$65.9

$66.4

.

A mutual fund

investing in common stocks

Fundamental

77.4

'

'

80.9

Investors, Inc.

73.7
72.4

-

For free

Fully Administered Fund-—_______
Institutional Foundation Fund—

Mutual

Investors

320

182

3.9

2.1

9.3

9.1

86.8

7,775**

2,632

—_—;

0.3

0.8

28.3

31.5

71.4

,

Elizabeth 3, New Jertey.

67.7

325

4.9

6.1

20.0

24.9

75.1

69.0

Knickerbocker Fund

932

1,114
10,938
2,630
1,075
1,193
1,106
7,813

6.7

8.3

22.3

23.3

71.0

68.4

15.7

20.8

23.1

26.2

61.2

9.4

3.8

28.3

29.4

61.3

61.8

1.7

2.1

11.7

11.2

86.6

86.7

9.1

4.6

31.4

362

59.5

59.2

7.6

8.1

32.6

32.9

59.8

59.0

3.1

6.0

25.3

23.4

71.6

70.6

4.3

7.9

33.3

32.7

62.4

59.4

Mutual Fund—

Securities—Income

National

8,463
2,876

Nation-Wide
New

894

—

Securities

2,489

England Fund—

1,0.69
4,129

George Putnam Fund—

Scudder, Stevens & Clark Fund—

2,464
1,707
1,624
2,459
41,242
152

28,900
7,485

Fund

Wellington

Fund

Whitehall

Fund

41

48

Value Line

38,482
1,211
4,534
2,955
1,100
32,888

31

Stein Hoe & Farnham Fund

98

36,229
1,267

Shareholders' Trust of Boston.—

-

5,514

CFC

A balanced fund

1

266

Loomis-Sayles

investment dealer or

Hugh W. Long and Company, Inc.

88.8

'

Johnston Mutual Fund

Massachusetts Life Fund___;

,

'

53.0

1,742

8*8

9.1

19.5

20.3

71.7

10.1

11.3

33.8

36.4

56.1

3,787

22.3

34.9

23.2

22.9

54.5

5.9

26.1

27.5

66.5

1.2

45.9

47.7

52.2

10.9

Elizabeth 3, New

Jersey.

CFO

51.1

9.9

investment dealer or

Hugh W. Long and Company, Inc.,

66.6

1.9

descriptive prospectus send

this ad to your

42.2

7.4

For free

.

52.3

32,682

Fund9 Iiic.

.

70.6

1,814

Investmeiiit

88.9

'

pen-End Stock Funds:

Affiliated Fund
Blue

__

:

Fund

4,110

Delaware Fund
de

*

Ridge Mutual Fund—

Bullock

Energy Fund
Fidelity FundGeneral Capital

Corp..
'2<_—_1
Group Securities—Common Stock Fund
Incorporated Investors"
Investment Co. of America.
Massachusetts Investors Trust

2.6

2.5

93.4

90.6

None

3.8

84.9

87.7

13.5

15.9

None

None

86.5

84.1

0.4

0.5

None

None

99.6

99.5

9,003

11.3

13.2

1.5

1.5

87.2

85.3

71

1.8

2.6

None

None

98.2

97.4

23,170
8,123

4.7

9.7

3.7

3.7

91.6

86.6

1.2

2.3

None

None

98.8

97.7

136

2.7

0.9

None

None

97.3

99.1

'
1

841

Growth

Stock

National Investors

3.9

0.9

None

None

96.1

4.1

3.0

1.5

1.6

94.4

11.5

None

0.5

89.5

0.5

0.9

1.2

98.5

1.2

None

None

98.8

98.8

1,5S6

1.0

2.5

None-

None

99.0

THE CAPITAL

1,356

1.1

None

None

98.7

552

4.2

4.4

11.0

11.3

84.8

84.3

1,454

11.7

19.1

1.9

1.9

86.4

79.0

GROWTH FUND
*

1.3

& Clark—
92

392

0.7

3.0

None

None

99.3

P7 0

6,164

5,331

10.5

9.1

0.3

0.4

89.2

90.5

sovereign Investors

47

1.7

2.7

1.6

2.1

96.7

]

united
Accumulative Fund
United Continental
Fund-

11.2

18.8

None

None

88.8

81.2

4,642
1,508
7,583

Fund

18,736

4.5

4.3

None

1.7

95.5

94.0

3.9

6.2

None

0.4

96.1

93.4

2.7

5.0

None

None

97.3

95.0

4,659

_

947

'

4,356

Science Fund
Street Investing
Wisconsin Fund

—HI—"III

1,217

2.4

3.5

0.5

0.6

1,314

18.7

19.0

None

None

8l'.3

762

195

6.8

1.7

1.2

1.2

92.0

6,675

§10.3

7.0

0.2

0.4

89.5

620

3.4

3.2

12.8

15.0

83.8

6,024§

3,280

§13.8

3.0

0.3

0.6

932

1.320

5.1

7.7

4.3

3.4

90.6

None

2.2

90.3

.

10,388§
636

Gpn!ral American Investors—_II.HI
Lehm
£ublic Service.......
Corporation

ational Shares

"Investment

bonds

*\ond8» Fitch's

2,928
10,426
1,628

3,457
12,354
2,894
2,141
155

""

—I-

and

quality

9.7

11.6

•-

through

★

88.9

None

88.9

0.1

94.6

94.5

11.2

11.5

None

0.8

88.8

87.7

3.3

4.7

2.8

3.1

93.9

92.2

16.0

6.3

4.1

11.2

79.9

82.5

21.2

21.6

78.2

77.3

None

None

87.6

THE GENERAL

86.4

0.1

86.7

13.3

flBonds and

i

None

0.6

Aaa

High-Grade Bond Fund

91.4

85.9

5.4

12.4

Moody's

i

A

81.8

13.6

3,151

stocks:

THE INSTITUTIONAL

92.6
•'

4.3

16,799

classification.

97 1

11.1
'

1,645

preferred

of

*

1.1

AAA through BB for preferreds.

irrespective

*

81.0

.

BOND FUND

17,179

I_

-

t"

7,420

2,828

JUagara Share -I.IH
Triepeaf- Securities
IIIIIIIIII
-

•

6,401

___

nental
Foreign Securities

v

523

—

A Balanced Fund

86.2

l°sed-Eiul Companies:
Adams Express
American European
"SecurifiesIIIIIIII
American International
Carriers & General.
~

ADMINISTERED FUND
I

95.9

97.1

825

1,294

wad

THE FULLY

95.2

30,605

28

state Street
Investment

err®ds

★

536

f

or f f

in Listed Companies
.

98.9

880

Common Stock Fund—
selected American Shares.

o

"

A Diversified Investment

1,604

Pine Street
Fund—___
,
T. Rowe
Price Growth Stock——

q

STOCK FUND

97.5

2

Securities—Stock.

THE COMMON

98.3

1.2

★

88.0

0.6

SECURITIES, INC
Incorporated 1933

95.4

10.5

GROUP

99.1

7,604
10,263
5,363
1,204

670

Massachusetts Investors

203

10,437
9,525
5,949
1,296

—

Tr

85.2

8.5

11,218

F__

Fundamental Investors

,

95.3 '

86.6

6.9

_

Nm;

95.3

482

Eaton & Howard Stock Fund

Income

90.1

None
None

4.0

Dreyfus Fund

united

*

4,459

Dividend Shares

Judder, Stevens

0.2

None
None

None,

4.7
14.8

15.1

1,693
1,982

—

Vegh Mutual Fund——.

National

4.7
13.4

BOND FUND
A Good-Grade

Diversified Bond Fund

1

only.
§Refleeting • temporary placement of proceeds fronn stock
offering. ♦♦Before providing $26,702,396 for dividend paid Oct. 11.

((GROtJP ( II

stocks

{Common

/Securities, i>^

SUMMARY

Changes

in

Cash

Position

of

—Sept. 30, 1956

73

vs.

Average Allocation by

Investment Companies

June 30, 1956

Bahn
Stn

i

Stocl<

i

Equivalent, Defensive

Minus

16

13

1

30

8

4

31

Companies
Funds

_

'

Funds—IIIIIIH

SC(l-End Companies

"
19

Approx.
Unchanged

12

8

43

25

Securities,

-

73

and Risk
June

Net cash, etc. and
Defensive
bonds

Governments

securities
and

Securities

30, '56

7.0%

Sept. 30, '56

preferreds)

grade bonds and preferreds)

For Prospectus on
16

these and

Industry Classes write to

7.2%

(investment
11.6-

11.8

81.4

81.0

Risk securities (common stocks plus
lower

Totals




73 Companies of Assets to Cash and

Total

Plus

•

descriptive prospectus send

this ad to your

Securities—

Group

Street, Boston

Grade Bonds ft Pfds.

mocks*

Net Assets

420

pen-End Balanced Funds:
American Business Shares——
Axe-Houghton Fund A_^____—
Axe-Houghton Fund B_;__;
Axe-Houghton Stock Fund——
Axe Science & Electronics.
Boston Fund

ri eie. rea

Per Ce-+.

60 Congress

Com. Stks. Pins Lower

Investment Bonds and

Net Cash ft Governments

Putnam Fund Distributors, Inc..

1956

Distributors Group,
63 WALL

Incorporated

STREET,NEW YORK 5, N. Y.

24

The Commercial and Financial Chronicle...

(1988)

Thursday, November 8, h

Ghanges in Gasmen S'osk Holdings of 58 Investment
(July

—

4

September, 1956)

>.

■

occurred. Issues which more managements sold than
bought are in italics. Numerals in parentheses indicate number of managements making entirely new purchases or completely
eliminating tne stock from their portfolios.
(Purchases shown exclude shares received through stock splits or stock dividends.
Issues in which transactions

Dejajpare
Fund

by more than one management group

Changes through mergers also disregarded.)

—Bought—

Sold

-Bought

.*

-

Sold-

>

No. of

No. of

No. Of

No. of

No. of

No. of

No. of

No.c

Trusts

Shares

Shares

Trusts

Trusts

Shares

Shares

Trus

★ ★ ★ ★

Offering

5(1)
2(2)

portfolio

n

45,000

54,000

International Harvester

3,100

10,000

Allis-Chalmers

2,000

____.

51,400

:

__

■RoJm & Haas

500

1

Deere & Co

2(1)

invest¬

on

in

ment

Agricultural Equipment

2(1)

None

None

Texas

1

None

None

Union Carbide & Carbon

-

Gulf Sulphur

\

•f diversified securi¬
which

be

may

3(1)
2

bonds, preferred or
stocks

common

lected in

varying pro¬

Manufacturing
._

Boeing Airplane
Curtiss-Wright.
Douglas Aircraft

13,000

2

17,500

4(1)

se¬

Aircraft

Bell Aircraft

6,500

14,700

2(1)
500

...

r____

1

2

4(1);

5,000
None
1,500

None
1

3(1)-

19,400

4(1)
4(2)

2

available

on

request

3

North American Aviation

45,700

3.900

Bendix Aviation

17,900

2,000

General Dynamics

5,900

2

2(1)

from the

61,983

1

Copies of Fact Book (Prospectus)

McDonnell Aircraft

10(1)

possibilities.

18,800

3(1)

ciation

Lockheed Aircraft
Martin (Glenn L.)

3,400

United Aircraft

4,000

4(1)

i

_

—.

50,200

3(2)
'

vt

DISTRIBUTORS,

DELAWARE
Penn

Center

•

Inc.

Phila. 2.

2(1'

2

American Can
—

None

None'

Owens-Corning Fibreglas

None

O;wens-Illinois Glass

Pan American World Airways..

None

Capital Airlines

11,175
38,500

United Air Lines

18,400

2

'

5(3)

American Home

3(1)

2,700

2(1)

10,000
12,800

Products

BEFORE

17,500

21,800

Borg-Warner

2,000

1

3

22,300

Mead, Johnson

10,200

Briggs & Stratton

2,000

1

7

42,000

Merck & Co

6

74,045

Ford Motor

9,800

2(1)

3(1)

27,100

15,300

General Motors

19,200

6(1)

6(2)

19,700

Parke, Davis
Pfizer (Chas.)

4(1)

DECIDING

from

your

900

1

2,000

None

...

Thompson Products

10,500

1

get the booklet-prospectus and
record of this Mutual Fund

Chrysler Corp

None'

19,900
3,500

4(4)

Federal Mogul-Bower Bearing

2(1)

i

Fruehauf Trailer

34,562

2

1,000

None
1

None

(Soft

FUND, INC.

National Distillers

2

12,400i
2,900:

,

2

Management Corp.

3,470-

1

400

2

3,100-

1-

12,000

2
135 S. La Salle St., Chicago

3, 111

9,700

Carrier

| Address.

i

J^Clty-State

Tr a ne
U. S.

J

None

1,000

I

______

!_T'

Dragon ,Cement

None

Johns-Manville

500

None
1

National

National

None

1,500

,

Neptune Meter

j

Otis Elevator

U. S. Pipe

U.

& Foundry
Plywood...

S.

2(1)

26,000

4(3)
3(3)

2(1)

4(1)

4,050

American

1

9,600

Atlas Powder

1(1)

investment facts

26,900

3(1)

Why not Get the

6,000

5,000

Freeport Sulphur

6,400

Harshaw Chemical

2(1)

about

2

10,200

2(1)
2

2,800

Hercules

Olin

&

128,500
Chemical

_

3
2

2
2

3(1)

_

__

_

Mathieson

_

...

_

1(1)

None

1.000

475

Hooker

4

10,888

2

1,100

2

Finance, Banking and Insurance

2(1)

4,000

American Insurance

None

%oi

2

9,200

Associates Investment—

None

Noi

1

1,000

Beneficial Finance

5,000

1

Chase Manhattan Bank

None

Noi

None

Noi

2(1)

19,000
18,500

2(1)

1,000

1

500

6(5)

27,600

2(1)

7,000
1,600

2

1(1)

14,225

Chemical Corn

Exchange Bank.

19,900

Fireman's Fund Insurance

14,000

1(1

2,500

2(1

1,000

1(1

None

No

First National City Bank

Guaranty Trust (N. Y.)
Maryland Casualty

3,800

Pacific Finance

6,500

Travelers Insurance

Kl)
1

7,600

_

_

__

2d

108,000

C.J. T. Financial
Phoenix Insurance

None

None

3(3

7,500
21,100

2(1

Seaboard Finance
U. S.

x

3,000
900

5,400

1(1

None

No

3>600

Cuban American Sugar

6(2)

3(1)

9,000

General

Foods

2(1)

2,700

General

Mills

Foods

J

Id

1

1

7,600

'

Id

400

13,000
1,400

3

2(2)-

3,600

West Indies Sugar.

11,700

3

1

2,000

Allied Mills

_

23,033

6(1)

None

None

2

Products

Food

8(1)

2(2

6,200

Fidelity & Guaranty

2(2)

5

1

1,300

None

2,200

Id

300

Aetna Life.—-

None

1

1

5,000
20,000

—

_

_

_____

Electrochemical

(N.Y.)

Hartford Fire

1

200

1

Commercial Credit

1

12,872

..

Monsanto Chemical

Eastman Kodak

9,500

8,825

_

...

24J00

GROWTH of capital—and

No

None
21,500

Continental Baking

2(1

9,600

——

2(2

—

INCOME.

—for FREE copy

i

_

5,900

Square D

1,600

Allied

1

2,000

Campbell Soup

5,000
1,500
8,000

1

portfolio of American
securities, selected for the possibility of

1—

7,4C0

U. S. Borax & Chemical

Chemical

22,000

Philco

2(1)

7,600 '

2

5(2

Sprague Electric

500

None

None

__

1(1)
None

2(2)

2(1

950

Armour & Co.___

Stauffer Chemical

5(1)

diversi¬

fied

1(1?

16,700

Best

9,500

Chemical

None

Kl
Noi

Cornell-Dubilier

1,000

15,000

Du Pont_

None
1

Westinghouse Electric
International Tel. & Tel

None

1,000

None

Spencer Chemical

Dow

500

3,500
None

—

1

Pennsylvania Salt

8,400

2
mutual investment fund

32,200
*

1

3(2

8,100
—r_

Sunbeam

1

700

2

SHARES-inc.

1

4

500

:

Raytheon Mfg

2

2(1)
X

AMERICAN

5(1)
None

None

2,300

_

_

1

1

8,000

_

__

Powder

4(2)

500

1,900

__

4(2)

SELECTED

965

•

_

4

Cyanamid
Potash

1,000
;

2(2)

3

Chemicals
American

2

Kl

None

Nor

10,900

Radio Corp.

1

11,400
500
4,000
1,300
17,200
2,800
2,500

Lead

26,500

1,000

4,300

„

Gypsum

50,000

1

39,000

...

Flintkote

None*

1(1)
None

4,500
....

Certain-teed Products

None-

1

500

Gypsum

10,000

300

None

Yale & Towne.

1

1

3(3)

Sherwin-Williams _____'

2

current

_—.

McGraw Electric

Nor

800

Electric

3,800

None

National Homes

1(1)

term

Day strom

6,200

;__v'

American Radiator

1

long

9,300

10,800

None

2(1

None

__

;

3(1)

6,200

5,000'

None

a

Electrodynamics

General

/

Minneapolis-Honeywell

None

|

supervises

Consolidated

4

None

Corp.

Consolidated Cement

None

Name

Nor

3(1

Equipment and Electronics

Cutler-Hammer

300

2(1)

*

2,650

30,000

1

None
12,500
6,700

«

11,400

Armstrong Cork

1

2(1)

which

(G. D.)

18,500

1

2(1)

Broadway, New York 6, N.Y.

2(1

2

200

Sterling Drug

4,600

1

500

i

Pepsi-Cola

3,000

4(2)
Television Shares

a

500

:

2(1)
700

"*■'

Building CoQstruction and Equipment
2.

1(1

9,000

'

Liquor)

and

Canada Dry

500

2(1

4(2)

^

Coca-Cola

1,210^

Noi

3,000
6,000

_

6(1)

ELECTRONICS

|

Searle

Kl
3

51,400

Schering

4,100
None

Electrical

2(1)

i

2
None

Beverages

115

5,300

3

investment dealer

TELEVISION-

500

,

7(5)

suggestion

f

None
6,500

McKesson & Robbins

6

investment

-8,3p0~

Lily (Eli) "B"

4

3(1

8,800

—_

—

Bristol-Myers

3(2)

timely

a

1

4(2
-

Products

Drug

1

Parts

and

1(1
Nor

3

3(1),
Automotive

*

2

None
300
38,700
28,400

.

Continental Can

None.

15,400

3(1)

Libbey-Owens-Ford Glass
-Pittsburgh Plate Glass

2(1)

24,500

None

7,400
11,500

4(3)

2(1)

5,500

Nor

900
1,400

_____

10,000
11,500
700

5(1]

v

None

Corning Glass Works
'-Dixie Cup

3,100
30,000

3(1).

1

2

Glass

63,200

Delta Airlines
Eastern Air Lines

,

Containers and

American Airlines

25,400

4(2)

Pa,

*

.

Nor

19,262

Anchor Hocking Glass

3,900
5,750

:

Coal__

Noi
Nor

None700

Pittston
;

3
Airlines

3

Pittsburgh Consolidation
1

5,300

2

None
—

-Koppers

1(1)

6,000
23,100 1

3(1)

appre¬

4(1.

None

__

Island Creek Coal

31,500

5(2)

their

and

14,000

None

2(1)

for

portions
income

2(2

3,500

—.

_

Coal and Coke

Clinch field Coal

15,500

4(1)

'

1

None

None
None
3,000

_,

2

9,000

5(1)
_

ties

960

of prospectus and

other information—fill in

address

on

coupon

name

Affiliated

and

eaton & howard

Selected Investments Co.

eaton & howard

balanced fund

below and mail to

stock fund

Fund

135 S. LaSalle St., Chicago 3, III

A

Managed by
|

I informationme free prospectus and other
Please send
SELECTED AMERICAN
on

|

EATON

.

I SHARES.
I

CF-li

24 Federal Street
j

BOSTON

Prospectuses from
State




&

HOWARD
Russ

BOSTON
ESTABLISHED

your

1924

Building

objectives

Prospectus upon

request

SAN FRANCISCO

Investment Dealer

or

Fond

of this
are
possible long-term capitalI a
income
growth for its shareholde
Investment

incorporated

J

Common Stock Investment

the

above«

Loud, Abbett & Co.
•

*

_

New York

—

Chicago

—

Atlanta

—

Los Angeles

j

lume

■

184

Number 5584

The Commercial and Financial Chronicle

...

^-Bought—
0f
No. of
rusts

£ bid

,

_

500

National Biscuit

No. of

No. of

No. of

Trusts

Shares

Shares

one

None

29,100
4,200
5,900

United Fruit
Machinery

1

16^100
20,000
10,800
1,900

__

14,300

and Industrial Equipment

3(3)

2

210

2(2)

3

20,400

3(1)

1(1)

1,000

Tidewater Oil

5(2)

3

1,900

Amerada Petroleum

8,200

*

2(1)

•

Babcock & Wilcox
Caterpillar Tractor
Dresser Industries
,___
Food Machinery & Chemical___
Ingersoll Rand

1,000
3,000
5,200
3,000
1,000

4

2

1

Joy Manufacturing

None

i

3,300
2,000

Link-Belt ^__
United Shoe Machinery.,.

2,000

KD

525

(1)

12,000

800

and

3(1)

10,700
5,300
2,000

(1)
2)

10,000
1,500
600

(2)

15,000
55,900
150

1,400
1,500

,

1

None

None

None

None

3,000
1,400

KD
2(1)

18,600

2(2)

...

Hudson Bay Mining & Smelting

;____

500

1

450

_______

Phelps Dodge

1

500

Ventures Ltd—____

5,500

3(1)
KD

900

■

O'okiep Copper

18,500
(1)

Cyprus Mines
General Cable
International Nickel
Kennecott Copper
New Jersey Zinc....

5,000

(1)
(3)

Aluminium Ltd

None

■one

5(1)

3

5,740

1

1,100

1

None

5,180

31,300
13,100
3,858

6,100

2(1)

15,600
2,450

3(1)

2

,

1

100

700

one

None

one

None

U.

one

None

Vanadium Corp.

2

3(1)

12,760

Reynolds Metals
St. Joseph Lead

4

5(1)

3

Revere Copper & Brass

None

U.

S.

1,050

American Tel.

American Natural Gas
Lone Star Gas
National Fuel Gas
;
Northern Natural Gas

4,000
(1)

5,000
20,000

Central & South

1

2(1)

3(1)

11,000

1(1)

15,000

3(2)

West

1(1)

2,500

8,500
None

2,000
None

Kansas Power & Light.
Middle South Utilities

2,100
6,500
2,500
39,500

Minnesota Power & Light
Niagara Mohawk Power

Northern Indiana Public Service
Pacific Power & Light_

enced

more

Bank

Koppers.

Stocks

None

4,500

and

;

3(2)

,

Island Creek, North
Pittston, Truax-Traer,

Kentucky,

Drugs were favored on balance,
especially Bristol-Myers, Mead
Johnson, Merck, Parke, Davis,
Pfizer, and Schering. On the other
hand, McKesson & Robbins, G. D.
Searle, and Sterling Drug, experi¬

3

Florida

Power

stocks

up.

Drugs

1
1

Illinois

coal

Incorpo¬
Investors, extending its pre¬
vious predilection, concentrated a

American,

1

Power

pick

included

1

3

2,700

General Public Utilities

the

of

to

full half of its issues
bought dur¬
ing the quarter in coal stocks. This

2(1)
2

Cincinnati Gas & Electric

41,000

2(1)
2(1)

1(1)
None

4,400

.

outnum¬

rated

2(1)

12,000

3,900

.

continued

Sales

in

Popularity Grows

Popularity

4(1)

27,800

Iowa-Illinois Gas & Electric

4(2)
4(2)

200

Coal Shares'

7(1)
2(1)

West

20,000
39,500
7,200

•;

1

2(1)

5,700

5(2)

9,500

General Telephone
Gulf States Utilities

2(1)

Gas

par¬

2,000
23,446
7,300

American Water Works

9;200

,

6,500

of America

2,250
2,800
1,100

Tel

17,800
5,000
1,000

1

5,400

S. Foil "B"——

Natural

2(1)

Dy¬

namics, United Aircraft, and
ticularly in Bendix Aviation.

7(6)**

Utilities
&

1

6,000

v

General

22,700

4

___!

purchases

1

None

Envelope
Public

6

Climax Molybdenum

None

Paper
Corp.

International Paper
Mead Corp.
Union Bag-Camp

10,800

None

1

one

American.

bered

800

St. Regis Paper.
West Virginia Pulp & Paper
Crown Zellerbach

3,800

3(1)

'one

North

7(1)

1

Paper______

Marathon

2,800

5

Magma Copper

Northern

Rayonier

1.

3

1,300

2
6

1,500

38,500

1

5,900
1,725

(1)

Great

Bioadly

Defensive Assets

8(1)

Hammermill

,

Retrench Into

2(1)

Champion Paper & Fiber

24,800

3(2)

Aluminum Co. of America

Kaiser Aluminum

of California

28,700

s

*•, 3

Cerro de Pasco

None

Oil

1,400
10,000

,

1(1)

11,000
3,000

Texas Pacific Coal & Oil
Union

7,000

11,480
6,900

35,054
17,100
642,100**
20,500

(N. J.)

12,300

15,200
(I)

Royalty
of California

Standard Oil

1

None

;_

6

Standard Oil

None

1
2

Mining

American Smelting & Refining
Copper Range

51,180

1

Paper and Paper Products
.

•

(1)

None

4
5(1)

2(1)

7,800

Combustion Engineering—+

,

1

1,000

Black & Decker

Metals

1

16,000
10,000

Southland

26,000
35,760
1,365

4

None

3(1)

Louisiana Land & Exploration__
Shell Oil

None

3

1

4,200

n

Continued from page 23

Funds

1

24,600
1,070

Gulf Oil

33,770

None

370

Co

Continental Oil

None

7(1)

1

Superior Oil
Texas

22,000

None

1

,2)

i

25

Trusts

___

Swift & Co

(21

Sold—

'

No. of

Trusts

Standard Brands___

None

13,685

'

No. of

Shares

■me

(2)
1

—Bought—

No. of

Shares
None

(1989)

Bank

rising

1

stocks,

None

1

2(2)

1(1)

no

doubt reflecting

rates, continued to
buying; especially
Chase,
Manhattan,
Chem¬
ical Corn, Guaranty and First Na¬
tional City of New York.
money

attract

1(1)

selling than buying.

good

Machinery

3(2)
Accumulation prevailed in

Pioneer Natural Gas

2(1)

11,600
7,300
3,100

8,000

KD

20,400

Republic Natural Gas.

4(1)

46,600

Peoples Gas Light & Coke
Public Service of Indiana

1,000

1

2

22,822

Southern Natural Gas

15,700

San Diego Gas & Electric

None

None

chinery stocks, including Babcock
&
Wilcox, Caterpillar, Dresser,
Food
Machinery and Chemical,
Joy, Combustion Engineering, and

5(2)

41,650

Southern

None

None

Link-Belt.

19,800
27,000

Southern Co.

5,000

1(1)

Southwestern Public Service___

None

None

Texas Utilities

3,700
None

1
None

Virginia Electric & Power

3,600

2(1)

West

2,000

1

12,100

1

55,296

6

10,200
(1)
(2)

8,000

None

3,300

United Gas

(1)

4,000
1,000

Colorado Interstate Gas
El Paso Natural Gas

Tone

None

one

None

Panhandle Eastern Pipe Line—
Tennessee Gas Transmission

■

Office

12,800
1,275
one

(1)
(1)

2(1)

6(4)

4

3

4,500

2

2(1)

5,300
8,000

6,000

2(1)

3(2)

29.000

2

3,800

2,500

2(1)

1

700

2

2(1)

Equipment

I. B. M

300

Addressograph-Multigraph

2,000
5,000

3(1)

37,500

Burroughs Corp.

None

KD

6,500

6,000

None

(3)
(1)

U)
(1)
(1)*
(!)

(J)
(!)

(1.)

U)

24,000

British-American Oil

40,800
23,000
10,800 5,000
18,350
23,000*
2,400
13,600

British Petroleum

Richfield Oil

35,300

Royal Dutch Petroleum

13,300
15,800
2,000
21,000
6,400
20,900
70,200
1,900

Seaboard Oil

Anderson-Prichard Oil

Power

American Gas & Electric

None

None

None

None

Columbia Gas System

2

None

,

L

5,000

Cities Service

None

Honolulu Oil

700

Mission Corp
Ohio Oil

2(1)
1

None
1

None
1

6,000

1(1)

21,000

Phillips Petroleum

2(1)

22,900

Oil

1

5,000

4(1)

500

1

600

,

1
1

5,300

\

Columbus & Southern Ohio Elec.

1,000
5,000

Commonwealth Edison
Consolidated Edison (N. Y.)
Consumers Power

4,800

-

None

None

1(1)

200

None

None

1(1)

5,000

2

67,300

,

Duquesne Light

Equitable Gas
New

England Electric System__
Ohio Edison
Oklahoma Gas & Electric

None

None

Toledo

None

None

None

None

Utah Power & Light—
Western Union

1

Edison

'

and

Motion

2

2

6(2)

Shamrock Oil & Gas

1,000

1

3

3,600

Broadcasting-Paramount
Columbia Broadcasting 'A' & 'B'
Motorola

Signal Oil & Gas "A"

7,000

1

1(1)

3,000

Zenith Radio

Sinclair Oil

None

None

None

1(1)

Skelly Oil
Socony Mobil Oil

1,000

1

13,450

(Ind.)___i
(Ky.)
Standard Oil (Ohio)

16,793

18,750

______

Oil

3,400
500

Oil

7,000

2

8,750
23,800

Union

Bag.

Radio-TV

Among

Paramount Pictures

Twentieth Century-Fox

the

Radio-TV

ABC-Paramount,

issues,

Motorola,

were

5(3)

In

case

2.

casting, 6 funds including Invest¬

3(1)
2(2)
2

ment

\

2(1)

the

M. I.

bought
of

6,000

Company

of

T., bought

Broad¬

America

more

shares, while 4 others,

including

on

page

4(2)
None

1,000

1(1)

6(1)
2(1)

Continued

on

page

26

1
1

2(1)

*w.v.v.v.v.v:vv>:^vvtf:oxv;w;&«^

I

Z
■

i

i

'v-//

%

is %

Mutual Investment Funds

32nd CONSECUTIVE DIVIDEND
AND YEAR-END CAPITAL

0

O

GAIN DISTRIBUTION

Bond Series

The Directors of Television-

Balanced Series

Electronics Fund, Inc. have
declared

Preferred Stock Series

0 Income Series
0

I
0

12.6£

from

Stock Series

and

of

quarterly divi¬
per

share

net investment income
a

distribution from net

capital gain of 55.7fi

Dividend Series

Growth Stocks Series

a

dend

0

Prospectus from

share,

both

per

payable No¬

vember 30, 1956 to share¬

holders of record November
Information Folder

NATIONAL

and

Prospectus

on

Request

SECURITIES & RESEARCH CORPORATION
Established 1930

120

Broadway, New York 5, N. Y.




Philadelphia 3, Pa.

1, 1956.
Chester D.
November 1, 1956

and

than 64,000

2(2)

32,746

balance.

on

Columbia

Continued

None

and

Zenith

2(1)

26,200
16,000

,___—

2(2)

Sunray Mid-Continent

400

16,925

None

Amer.

4

Standard Oil

11,000
64,643

2,800

Although the policy toward the
issues
was
not
uniform,
buying outweighed selling, espe¬
cially in Champion, Great North¬
paper

Pictures

None

None

4,200
37,200

Paper^

Hammermill, Marathon, Ray¬
onier, St. Regis, and West Vir¬
In
disfavor, on balance,
were
International, Mead, and

2(1)
3(2)
2(1)
2(1)

35,400

A

ern,

5,500

4,100
27,000

ma¬

ginia.

4
3(2)

31,500

—

Radio, Television

4(3)

51,700
10,500

2,900

700

Standard

None.

124,000

Brooklyn Union Gas

2

3,500
1,000

;

None

Electric
Electric

2

1

Atlantic Refining

******

Penn

Wisconsin

None

(Missouri)

502

7,500
26,100

Pure

Union Electric

Edison

1,400
2,300

National Cash Register

Pitney-Bowes
Oil

(1)
(3)

10,775

California

None

None
,

None

Tripp
President

135 S. LaSalle Street, Chicago 3, Illinois

26

.

Chronicle...Thursday, November 8, 1956

and Financial

The Commercial
26

(1990)

—Bought—

Continued from page 25

6(1)
2(1)

2(1)

Atlantic Coast Line

2,600

4(2)

Trusts

1

38,800

Chicago & North Western,.

3

10,100

Great

Northern

7,200

17,500

9,400

Kansas

City Southern

1,000

New

11,100

6(1)

Boston-Type

Southern

Railway

3,700

____

2,000
2.300

Chicago,

4,800

Denver

None

None

Seaboard

Air Line____

5,000

Southern

Pacific

5,000

Union

1

2,652

Western

3(1)

4,200

1

2,500

American Steel

2

1,000

Gen. American

Into Defensive Assets

None

None

None

500

Foundries.—

Incorporated Investors, sold

1(1)

None

Brake

None

None

5,500
17,729

Union

3(2)

15,000

Westinghouse Air

Car__

1,000

Brake

ing in Aluminium, Ltd., the most

Allied

2
2

Investing in

8,500

Bond

Motors

23,300

Associated Dry

3,000
9,000

Union

None

200

;

None

Kroger

2,000

2

2,500

5,500
1,000

1

"Energy

Sold

at

the

in

possibilities

growth

1(1)

the

net

writing
to

1

Mercantile Stores

liquidation

15,200

2(1)

four

C.)

1,700

2(1)

making

Sears, Roebuck

None

50,230

5(1)

their holdings

4,500

2(1)

3,400

National

1,000

Penney

None

Tea

(J.

commission

under¬

4(1)

13,600

8(3)

26,400

Goodyear

13,440

U.

2,200

anyone.

Prospectus

.

.

Rubber

.

Goodrich

.

on

request

5(3)

8(4)
8(2)
2(1)

Distributor

3(3)
E. SAMUEL

2(1)

49,500
25,200

Bethlehem

sa.,e^
Burroughs
and

3(1)
None

some

200

.

1

1

4,100

2

2,400

1(1)

None

None

Steel

Crucible

21,000

None

—__

3,000

Hanna

"A"—

(M. A.)
Steel

Stock Exchange

6(1)

12,600

New York 6, N. Y.

3

17,500

Jones

2

22,000

National Steel

75,800

Republic Steel

Telephone COrtlandt 7-8600

3(1)

&

Sharon

1(1)

300

13(2)

152,600

4(1)

19,500

U.

the

1

those liked

1

Atlas

3

1,000

1(1)

5-Zl

Steel

None

Youngstown Sheet & Tube.

None

None

None

The

were

Powder

among

American Potash,
Hercules

Harshaw

2(1)
2

aberdeen

United

Merchants

&

Mfrs..

1(1)
2(2)

Tobacco

2(1)

900

1,300

American

Tobacco

^e's3ung°'was"'nofunUormTii
6

thi

Dow,
Gulf

DuPont, Monsanto, Texas
Sulphur and Union Carbide.

6,500

2

2,700

3

DESIGNED

14,000

glass cate¬

particularly X.OL V vl Cu
favored
Hocking, Corning,

gory,
f

pui LiLULCU ij

were
W CI C

Dixie
Cup, Libbey-Owens-F o r d, and
Pittsburgh
Plate; while
selling
predominated in American Can,
Owens-Corning, and Owens-Il¬

Grace

Gustin-Bacon

1,000

Harbison-Walker

1

2(2)

LONG-TERM

2

19,386

3,400

None

linois.

12,000

1(1)

almost

matched buying.

Refractories.

8,700

1(1)

None

None

R.)
Mfg.

Long-Bell Lumber
Minnesota Mining & Mfg

Electrical

The

2

1,100

,

t,

.

.

,

predominated

Buying

.

in

^

Day-

GROWTH
Prospectus from your
t

or

—

mail_ coupon

inghouse the volume of purchases
(including a further 5,000-share
addition by
Lehman Corp., and

dealer

today to:

DAVID L. BABSON

ness

Shares-Affiliated

a mutual fund investing in

Dept. CFC-53

New York 5, N. Y.

Please send Aberdeen Fund Prospectus

TEXAS

securities of the southwest

dealer

be obtained from your investment

or

State




a

CApitol 7-0211

Teletype IIO

—

1, TEXAS

566

sales

Fund)

(which

in-

15,000-share reduction by

State Street):

.

.

J

•

.

1

In

the

insurance

in

buying
Hartford

group,

American,

Fire, Maryland Casualty, end
Travelers; while selling predominated in Fireman's Funds, Aetna
Life, Phoenix, and U.
&

Guaranty.

larg

„

^ixe

-

,

exhlblt^d towaird Je s y,

otSd^OO
Utilities

Likewise mixed
Out of

the util
under o

were

issues

42

than selling, while

buym
in the case

liauidation

17 others

S. Fidelity

exceeded a

r^rt'rr,
Central & South Wes
Utilities,

Public

_

,

Tei
Ele

General

Iowa-Illinois Gas &

phone,

&

power

'

ugh
e0rvic

...

Northern Indiana Public seiv
Oklahoma G. & E. Pacific Po#
& Light, San Diego Gas &

trie,

Insurance

prevailed

TEXAS NATIONAL BANK BLDG., HOUSTON

Street

doubled

FUND MANAGEMENT COMPANY

Investment Advisor and Principal Uhderrvriter

Name

City

prospectus may

about

eluded

MANAGEMENT CORPORATION
120 Broadway,

block

Kansas

texas wrfund

attracted

hand,

including a 43,700-shar
by Investors Mutual. Par

review, 25 met with more

Sector

—

Cali

oiI of indiana,o

buying,

ities.

r

'

gtanda'rd

other

Union of

and

rihin

,„i

£ornia

In Continental Can selling

1_.

None

1,600
5,000

(W.

1

20,000

—

1(1)

POSSIBLE

None

None

Filtrol
Gillette

2(1)

FOR

1

16,100

Selling also pre

amounts.

the

In the container and
J

Instruments

„

AffTa?ed Fund).Spencer* Alhed* ^mlsUc lluefa^ A^aadfco"

Anchor

Beckman

standard

Gul£

^
Uorax and Califo?nia P and Texas met wit
Electt,rochemIcaI- On the
m
p^esure. on the othe
other hand, there was more sellhandiBBritish Petroleum and Roya
ananhrt'^iWh'.Hfn'o
Dutch continued to be bought!
anamid (including a co 'r^n'l Stl
m p 1 e te
'

-

3(2)

36,500

...

ii

politically-affecte
companies,
wher

of the

international

Glass and Containers
1

3,000

Reynolds Tobacco "B'

Miscellaneous
2

:

12.000

42,500

American Viscose

"

1

fund

8,600
5,892

petroleum grou

the

in

particularly diverse, even
case

good

Textiles

address

in

Oils

Action

group,

A

„„„„

rJ+lfo,, n™,!
Pitney-Bowes

predominated

Sales

Chemicals

chemical

.

°§raPh.

extent, Certain-teed.

the

purchases greatlj

.

,

,

was

In

Equipment

The volume of

■

3,900

—

Steel

S.

Trane,

1,000

7,300

Laughlin Steel—.
__

Tennessee Gas

U. S. Gypsum,
U. S. Pipe and Foundry, and U. S.
Plywood. On the other hand, bearishness prevailed towards American Radiator,
Flintkote, and to

4(1)

6,200
Iron

Line, and
Transmission.

Panhandle Eastern Pipe

construction

Office

3,400

Steel

Cleveland-Cliffs

5,360

Gas were favo tes
fleld- Sold 011 balaMe Paso,
were
Northern Natural Gas, El

vailed in

11,500

Steel

National Fuel, Republic, and

TT

and

3(2)

Allegheny Ludlum Steel—
Armco

eliminations of

Gas, Ameri¬

Natural

Southern
can,

equipment group, buying pre¬
Carrier, Armstrong Cork,
Minneapolis-Honeywell, Sherwin-

2

21,000

Iron

41,500

Inland

Members N. Y.
115 Broadway

& CO.

and

the
issue

former

building,

Williams,

Steel

the

of

complete

the

In

and descriptive

literature

RALPH

S.

controlling,

was

sellers

-Natural Gas

Building

Tires

Firestone

payable

or

.

Rubber and

value

asset

load

rous

represented a virtual stand-off. In
the case of Chrysler and Fruehauf,

2(1)

6

sales

1(1)

4,200

2

no

...

None

Woolworth

—

2,000

1

None

Age"

Kl)

1,000

con-

was

advantage of the

1.000

Spiegel

6,500

None
Organized to invest for capital

Kl)

None

Simpsons Ltd.

18,600

1

INC.

3

1

None

2(1)

Safeway Stores

2(1)

evidently

opportunity to average downward
the cost of previous commitments,
Purchases totalled 74,000 (includ-

None

12,500

there

siderable taking

1

26,700

May Department Stores—.
Montgomery Ward

£ell^nS

n°lds» and its parent U. S. Foil,

Other favorites in the non-fermetal group were American
Smelting, General Cable, lnternational Nickel, New Jersey Zinc,
Phelps Dodge, Ventures Ltd,
ing an addition of 55,000 by Cerro de Pasco, and Cyprus Mines.
M. I. T.),Borg-Warner and
Sold on balance were Hudson Bay,
Thompson Products were
other Kennecott, Climax Molybdenum,
favorites in this group. Action in Magma,
St. Joseph Lead, and
General Motors, on the other hand, Vanadium,

None

100

2

energy fund

500

First National Stores

13,750
25,600

which

None

:

2(1)
3(1)

favorites included Ford Motor, on

2(2)

Department Stores.

3(1)

through

3(1)

12,300

Goods

Stores

Grand

prime

the automotive group,

In

Stores

Federated

2

Energy

popular metal holding by invest¬
ment companies, and in Alcoa. On
the other
hand, there was only

gent Reactions
The

14,400
1,200

Encountering Diver¬

Groups

KD

Retail Trade

5(1)

Buying greatly outweighed sell¬

None

4(1)

Metals

nearly The Non-Ferrous

33,000 shares.

None

None

3(1)

Tank

Broadly Retrench

Funds

Transportation—

Air

York

2(1)

.

25

8(4)

None

Industries

American Brake Shoe

(

"

Equipment

ACF

3

and institutional investors m Massachusetts
Corp.

i

Continued from page

2(2)

2,500

——

-

6,200

New

2(1)

1,200

Railroad
3

4(3)

1,085,792

2(1)

97,200

Pacific

NATIONAL DISTRIBUTOR

sold

holding company.
of investment trusts
shares to Sinclair Oil

pany, a family
♦♦A group

22,300

_

______—

Pacific

which during

2(2)

18.000

______

2(1)
2(2)

acquired by the Scudder, Stevens & Clark Fund
September 1956 purchased the assets of the Phillips Investment Com¬

2

4,000

Pacific

1

Street
17, N. Y.

42nd

York

Northern

Newmont Mining

1(1)

32,000 shares

including

♦Not

36,500

Gulf Mobile & Ohio

None

2(1)

of America
New

None

None
None

INVESTORS PLANNING CORP.

2(1)
2
2

600

1

2(2)

8.800

Western

Grande

Rio

7,800

2(1)

Pacific

Island &

Rock
&

U

5(2)

1
1
5(2)

4(2)

2,200

Canadian Pacific

KD
1

irom

Baltimore & Ohio

57,300

Atchison, Topeka & Santa Fe—

Kl)
Prospectus and Literature

2,000
2,500

37,400
12,000
5,500
5,800
3,900
3,100
1,100

—

Halliburton Oil Well Cementing
Johnson & Johnson
Minerals & Chemicals Corp

None

None

2

13,300

1

1

4,000

1

None

2(1)

Colgate-Palmolive

500

1

—3,000

Ekco Products
Glidden

100

1

1

None

Western

&

1

None

11,300

York, Chicago & St. Louis

Norfolk

12,100

None

Anderson, Clayton

None

Shipbuilding

Procter & Gamble—
Singer Mfg.
——
Sperry Rand ——

2,600

3(1)

3

Transamerica—

None
400
1,000
52,600
——'
1,000

Newport News

None

None

KD

500

Central

1

Mutual Fund

•

None

3

trust

East

2(1)

Illinois

3

3(2)

60

1(1)

7,400

__

2(2)

investors
A

6,000
None

_________

Chesapeake & Ohio.

31,500

5

22,650
7,000

No. of

Shares

Shares
Railroads

general

16,500
9,600
1,100

No. of

No. of

Trusts

For Income

No. of

Shares

1

-Sold-

—Bought—
No. of

Sold
No. of
No. of
Shares
Trusts

'*

No. of

Trusts

were

Southern
Among the

and

Edison.

American

Columbia

Gas,

CalifC"
issues s°

Gas & Elect
Consolidated Erf
t it*hi

New

E'1

son' Du(luesne L1&al
land Electric, Toledo Edison.
Western Union.

Niagara

Mona'

Number 5584... The Commercial and Financial Chronicle

184

ie

j

Retail Trade

stand-off

ended in a near

,wer

Ills

*

quarter

balance '; werfe

on

included the

Favorites

during

were-.First

Continued from page 3

the

Associated

Stores,
May De¬

Goods,

Policy too Late and

Railway.
hand, there was conIrable liquidation of Illinois
nfral Nickel Plate, Atchison,
bicago Rock Island, Denver &
io Grande, Gulf Mobile & Ohio,
orthern Pacific, Seaboard Air
and Southern

nthern

he

$50,000 shares; with

other

offsetting

no

chasers, higher

buyers.

costs

will

result.

Reserve

The

more
that are brought into
the market with easier
credit, the

Rubbers and Tires

Likewise
and

tire

jhixed

the rubber

was

greater-will

The best buying,

group?

too Little?

for

the

be

labor

the

and

it

possible

to

in-

the reserves of the member

crease

banks, it enables

loans to be

more

no

made

were

results

not remains to be

or

seen, and the fact that the results
not been

have

forthcoming

not^be forthcoming

win

indeed
WQUid

cer-

time

some

events nowTnlnV^n

the

tofitthe

seem

rf ^ocf ^nice oUilo d^s,c;i^t}ons
0f prosneritvwhere'it rwrSfS
y where

reaches a

recession:

so increases the
supply
of loanable funds. Now if the
Sys-

re-

is

practically

as

on a far larger
Whether they will bring the

made,'and

competition

materials

makes

cycle

made

27

in.the-1920's, but
scale.

^rver cannot help but feel that of interest, rises. This would ocfVese easier terms are success- cur without any Federal Reserve
fal in reaching more potential pur- System. But when the Federal

Jf

business

mistakes

same

same

al-carrying Chesapeake & Ohio partment Stores",- M ontgomery
} Norfolk & Western as well Ward, National?. TTe a, and Sears
Chicago
& North Western, Roebuck.
TheMatjer was sold by
Northern, Kansas City five management! to the tune of

the

We" have

more.

the

Is Restrictive Federal Reserve

Allied

that

or
•

National

Stores,
Grahd 't Union,
Kroger,
Safeway, and Simpsons Ltd. Sold

•

Lils also met a mixed reception,
£Tomewhat more selling than
hi

"reltailers

Favored

buying and selling.

ween

(1991)

®

*n pnces> con"

and Southern Pacific.
railroad equipment issues

ine,

Seven

there

negligible

bought, with only

ere

some
selling
qi-ij!
rinn/lt'ifiVi
and--Goodrich.

was

RnhKov
Rubber

'■&
,

may

S.

tion workers, and the owners of
1r,v> J
land suitable for
subdivision, are

m

.

South America

systematically

well

accumulated in
amounts

eral Reserve tries to

or

is he taken

for

is

favored,

ride?

a

1.

But

And

thej^artunities therefor others who

in

pf $30

ex-service

be.

man really

Latin America, George Putnam
Fund bought 3,350,000 Bolivares

as

the natural thing, and if the Fed-

the

should

Reflecting, thd search for highyielding fi^ed-rincome issues, as

be

situation. They

1r

...

in

on

delighted with this

'.

Exploiting Xxeld
Shares

of ,U.

'

lies.

j;

•

how

piling

?

about

'

j,

all

must either pay more or be forced
to withdraw from the market?

while

6%

FUND

MUTUAL

A

group

The

in¬

former

bought

diversified
of securities selected
in

vesting

a

issue

was

also

Bond

by ^Electric

and

possible long term
growth of capital and

in

the

of homes

amount

of

$584,950.

for

income.

ISA Gentral

........

from your Investment
Dealer or

Group

flimflammmg

CHICAGO,* 111.

Lawlor,

(0, PA.

Jr.,

blower

&

^partner

Horn-

America

or

people

will

from

the

Federal Reserve

W.

Faircbild, As¬

Wm. J. Lawlor

Vice-

'

.

.

First

The

of

partner, Kidder,

have

*

Peabody

Harris

J.

serve

mittee.

Distributor

also

St., Philadelphia 9

the executive

Four

other

to this

dicate
Inc

•

'

midwest syn-

Blvth"
J

Manager,

Francis R

'

Schanck

&

'

.1

the

Federal

markets

for

present

things may be

many

prices.

Reserve.

U

had

we

cen-

consumers, are bidding for t>e use

Co.

r\f

nnrl

nn on

+V10

r-o

+

Q

r\f

inforoot

They

-

that

there

is

Federal

mitippmpn'
commiueemen

Reserve

against

warns

of

credit

and

an-

Making

tlinnn,

1920s

„

and
/.Mi'!

t

Iowa

r
The

■>/?' > ..1

Corn. i-iDesi Moines, Iowa);.
States Group of the

-

ie
is
ls

IRA

pnmnn?pri nf mprnhPY? from
enmnosed of members
comP°secl 01 memners

TUinnfc 5SS
Wisconsin,

Illinois,
ka

In the
to

and

we

we

intend

to

dealer

DREYFUS
Broadway,

Robbins & Co
He

was

J.

Inc., 40 Pearl
with

previously

^

business

cycle
can

is

no

be pre-

mists (myself included) who feel
+U

^

^

government

..J-

—

So

do

TV

many

R. F.

Campeau Adds

minum,' steel,
plastics'may be
is

it

quite

annliance

paper-board

getting that

obvious

and

way

that

building is slowing down
sively.
The change-over

"

home

exten-

period

the picture there, but the confident anticipations about enthusiasm for the 1957 cars on the part
of buyers may or may not be realized.
That remains" to be seen.

And catching up after steel strike

optimists into further

some

And last but not least,
the confidence which some writers
to feel that the present

seem

of price increases

means more

rash
and

inflation may be misplaced*
This eagerness for price increases
is always part of the picture of
more

pattern of the past will be repeated in broad outlines, differing
the

But

he

details, of

many

coming
who

months

would

cure

or

course,

or

years.

that de-

say

formed, or poorly educated (by
Keynesian indoctrination, it says
here in very fine print).
"

the busi-

«

s

1

a

'

a •

•.

ness cycle has not been repealed,
and

that

the

government

or

retarded

1933

and

Too Late With Too Little

mter-

recovery,

pre

for

the time of the
never was

However,
not

one

'to

fundamental issue

have

been brought
by those who comment on the
Federal Reserve's action in inseems

up

nroncinrf'

tLo

canacity

depositors

That is, with an increase
oT a million dollars, a

might

be

able

to

increase

ons

more

depending

vari-

unon

circumstances not germane to
r~i

discussion.

-

So

J.1

•

there

is

overlooked

a couple of things. One inflation that the Governors seem
was the shortages of things people to consider to be in the making?
wanted but could not buv during And whv have thev been so long
wanted but could not buv during And why have they been so long
the denression of the 1930's be- in doing it? We must remember
cause

•

the needed adjustments did

svstem.
for

we

had the

out. for four

in

more years to take
of our military needs. Then
there was the period of reconversion which happily took a shorter
TTVinrx
i K
+Vl
time. Then there was the r\Qnt_lin
pent-up
...or.

/-v

purchasing power generated by
war whic^ came flooding onto a
Naturally, if the demand- market which could not supply in

was here to stay
1920's, during the greatest
depression in our history in the
1930's and during the greatest in+V.
flation in our history (with the
possible exception of the time of
the continental currency of the
_n

„

the

a:

i__

: ~-4-

O'Brien

has

stMf'of R^F.
Penobscot

Mich.-—William
been

added

Campeau

Building.

to

J.
the

Company!

]hok

ioaneH funds declines

than after previous

with too little?

rises,

and

lenders
As the

are

sup-

wars.

But

it

charge, the rate

of prosperity establish

a new

raises

order

^

A backward
the

And

question:

we

♦;

...........

can

always

14.1.

was the Federal Reserve too late

ply becomes less and less, the price does not follow that 10 or 11 years the
which lenders

/

Revolutionary War).

brmf time all that was demanded.
It took much more time this time

loans

Federal Reserve

prosperity that

care

/~i vzx

an

that

not take place. Then wh^e recov- with us during World War I and
cry was slowly taking place, war its inflation, during the sharp setcame on, and we had to do with- back of 1920-1921, during the
long

willing to lend, the supply of unDETROIT,




and

makers. Some economists fear alu-

rr

—^

cannot

elasticity here which would n.ol
be present without the banking

or..,

Corporation

even

this

(Special to The Financial Chronicle)

New York 4

its

deposits by making >bans of two
or
three million dollars, maybe

-

Co.

the

has

than

.....

Hanrahan &

Illustrated booklet
(prospectus) free
your

L

Street

more

reserves

bank

Mass.— John

become affiliated with

Timon has

reserves

lend

bring in.

(Special to The Financial Chronicle)

WORCESTER

consider sensible risks

from

.

the matter in some other way. But
^
the uaniHncr system with its frarbanking wcfpm with its frac-

of

take

they

Nf

devotees t -the N(
tcs, to ignore this or tr^ to explain
ics>
try

to

hope

in that direction.

■
•

tional

H
we

50

Indiana.

'

make your
money grow,

^hat

and

lowa, Nebras-

Joins Robbins Staff

Dreyfus Fund

find

The Wall Street
7
1956
stated

June

vented by the authorities, or if it pressions are a thing of the past,
should appear, it can be corrected, or that government can cure them
Yet there are the oerennial pessi- would be rash indeed, or ill-in-

between

o?thn

Central

ttd a

FUN1MNC

and

ra-

Roy r
Treasure^,

and

^*

manufac-

nroducirm

ammonia, potash sulfur appear to
have more canacitv than is needed

in

The

and depression

supply of loanable funds is war, the unemployment
J?"• Wc
7i/o-miiW

-.

sales

of

ation.
more,

vented

VrvfThe
(Co.
(Milwaukee,
Wis.)

in

Journal

widely in

ference of the 1930's actually

conabout a

bringing

ud

SuciS

cannot conceive of any other situ-

venientlv

for

e

the final phases of prosperity.
0nly time will tell whether the

„

Mistakes?

plies the brakes, it is blamed
stringency.

waukee

down

at all.

overextension

executive

ac-

were

slowing

any

Com nan v
I wo

may

eased, selling would go on as before, and there would be no interruption. Therefore, it is the fault
of the Federal Reserve System

^°l,ld RaYf to rise- But when .th<v Prevent depression that

Ta.

1 .a

optimism.

Whipple & Co.; Robert A.
Podesta, partner, Cruttenden &
*'

turers have built

pacitv

leads

of money, and the rate of interest that

partner,

Bacon

com-

'22
the

people buy. Meanwhile

that if the credit conditions

The

no

a

««

$2,000
•
in

croiS^ld ,Z.r.yl,1"g else ,at
5®andeverythingthat
V". ev^ything^lsrthat

cept it privately, but for publication, no. They profess to believe

demand for loanable
We have become so accustomed
fun<3s is what is raising the inter- to prosperity that most peonle

bank, the results would be
different, just how, it is impossible
1° sa7'
interest rates would
high, because millions of peoP*e an<I firms, both producers and

Chicagoans

committee in-

W albert

tightness

1

*

considerations, in the automobile industry clouds

But blame does not rest

est ra*e his*1-

Hutchinson'& Co.;

McMaster

ner

•

com-

Sampson Rogers, Jr., part-

Richard B

years.

enormous

Chairman, David
partner, Bache & Co.,
on

the

scapegoat, and the Federal

blamed.

&

CSG

named

clude

5-3311

a

with

will

& CO.

for

J

"Over-expansion threatens some
An inter- lines. Basic raw materials such as

there is the unwillingness of
many
people to accept the fact that the

reaction

Reserve, sitting aloof, lonely, and
grand, is a good one. It can be

Boston

Co.
Former

the

credR. Dissatisfied people must

Jr.

Corporation, and Erwin A. Stuebner,.

of

more, at $2,400, and

Sckeninnwii.fi

increase

of

approaching the saturation point

of the public to the Federal Reserve's credit policy is the
willingness of
many people to blame the

filled,

respectively,

,

aspect

.

have overdone it.

Besides all these

fit

'T reasurer

Request

period of

Reserve
Another

Automobile

«

rate

millions of peonle

withdraw

,

An

carsnricefat
12i
if he^duid thfnriceTo
^ OOo!

effective

the

the summer of 1956 when several
large corporations postponed the

mean higher
prices for those
who do buy, while many sensible

Secretary-

Telephone: KIngsley

into

So.if.

,.

course'

of

process

it easier

to make

charged

rationing

esting

Willingness to Blame Federal

President

work,

higher

a

buy, but if such terms
the market hundreds

seem

Chairman and

sistant

to

is

other

'by Paul

pay

ratinnin*

interest which makes it work must
be higher. Yet the Federal Re-

market entirely.

were

willing to

now

goods, serve gets the blame

posts of Vice'

123 South Broad

are

must

meet¬

Two

thi«

issuance of new long-term bonds
who could not buy if substantial "because the rate of
interest was
down-payments and shorter ma- higher than they were willing to
turities were required, the results commit themselves to
pay over a

ing.

ing';
A Mutual Investment Fund

rate of interest
interest

nf

process.

down-

no

enter

^rnrl<L1SeTiLPart °S thisborrowers
rationin2
The marginal

dp
de-

public

production

and

firms

example of this rationing
process has occurred recently in

of thousands

group's

annual

maturities

bring

at

'

the

and

nart

as

rate, and if the

for

an

a

must rise

for people to

of

the

said

payments

elected

Bankers

Association

be

Long

Invest-

ment

FUND

J.

Group

of the

PHILADELPHIA

of

was

could

1957 of the Central

States

FAHNE^TOCK

of
ot

the

"people

ducers'goods, the

quad-

?f a11 durable consumers'

T

William

—

Weeks,

Chairman for

on

in
m

Housing is here taken as an example, but much the same thing

Elects Lawlor Chman

GEORGE A. BAILEY & CO.

Prospectus

tripled or
the" welter
tne welter

and
ana

induced

the

has been riotous.

Send for FREE Prospectus

845 tAND TITLE BIDG., PHILA'.

have

rupled ,
rupiea

mand,

Share

in

marked fo'r loanable
book
SimlfaS?
"
both consumers'
bothiinsumiis""go°o'ds and pro- household ri n'r h Z1 'annU
goods a"nd"pro- househow"1 dura,,,

the general
price level has about doubled since
since
before World War TT
the
before World War II the prices

•

of

*

l ?2Lin
e °/ vefess}?n>
™?ri?AfcnGe ° saturatlon

borrow, who would withdraw if
<*,* still
noint hiuhpr
A* mil-

lions

which^cannot

of

hA

,

Leuk

who

SeVdfmany
c,,Qtnir^

some

percentage

due; 1957 of the Vene- out of it rich. While

ziielan Ministry of Commerce.
an
Vree of Pennsylvania Personal Property Tax

fits, who have seen their chances
to flimflam the public and come

Venezuela;
holding $500,000 of a

also

note

of

remove

demand, the lamentations

peSoie

some

t„hferteu„.a?er,,thL.C°rirft°.r,S' to
S,A.,

be

to

seem

The rate of interest is a rationing device At anv rate there are

or more.

Nacional,

to

comes

loud and long.

are

want new houses and

on

■.

this

of

demand

of

up

demand

can

ask

™

^^uZeTonvaZTs
Continued
page
on

to

Thursday, November 8,

Financial |Chronicle...

The Commercial and

28

19;

(1992)
,

the deceleration

27

Continued from page

Federal Reserve
'
lifllfi anu lOII lliuvi
Late and too Little?
UaiW

Is Restrictive
_

-t

T

DAlfllff >AA

rOllCY too
WW

.

1.

u

«

perspective,

JS

„

.

Rate

nf

nnpn_

d_

F

banks

re-

by buying and sel i g
--.J
|AA I « Iftl A
The actions that it has taken with standing government bonds on the
the rediscount rate look to me open market.
When it
y.V
(
like a slap
on
the wrist with increases banks'reserves, and thus
Hpnends uDon whether
potential tongue in cheek, a polite warning increases lending power. When it
£ind any
to be good. Not that this has —
not sells, it decreases reserves, thus
v v
"
vv
owv—^~
ovno.
u
uvwvuuvu
^vuv*

^Tersca"

»

be

ran

But it must be

not all bene
from wage increases, and pri
increases are fine for sellers, f(
exclude

they
frQm

potential

buye

markets

the

It
remains
wbetber the upward
spir
goes Qn< ■ It win if g0Vernme
deficits reappear and Federal

be

geen

leasy_^oney

advantage

d

if

But

R

policies

the

are r

Federal

„

,_

_

r

that

membered

serves

does not have
mQnrintP Tn STTlOOin OUl
LUC
mandate to smooth out the iiuu- p^rower^
flue^
^
^
tkHiations in the business cycle.
Its in borrowing or not and whether bad Some effect. It has. The com- decreasing lending
nH^inal nurnose was to help the or not the bankers themselves feel piaints attest that. But look at "Federal Rese rve
original purpose was
Ko
ui.
t..1,.
mt;«
original puxpuse woo ^ iicip
iu

the Federal Reserve

be expected.

Market

onen

^nplll_ion

Similar con^s/J,on.
reached
with
r^sP
..
^

eral Reserve influences

obvious to me.

One thing seems

tt-p

g

A

market operations. Here tne rea

.

„

Rediscount

Timid

Reserve

Federal

to stand in this

seem

CnarJn_

Spari

the slump be.

or

the

does

Where

p.

- —•

.

,

.

in times of emer-

banking system

credit

when

gency

such

needed,

people expect the System to
something about smoothing

do

out

this*
—
well,
the Federal Reserve should not do
anything to interfere. Don't rock
they want is
"»*"v
—
is going along

What
v*imi

acny.
actly.

When business
,U

—

.

-

•

-

-

-

-

-

But when the depression sets in, the the System must
correct it.
But by that time all
boat.

the

malaUpovennvestment here and there, overproduction in " various lines,
too much
debt, too high costs incurred too
bigh prices°charged!""^ When the
is done, the

the damage

of

-cation

Governors

extension,

resources,

letin," published by the Board in
Washington, shows. (Unfortunatethe" Board of ly, a summer home does not prowants to curb credit vide the latest figures in finance,
it does just the op- but these will do.)
Loajis of all

when

—

—

hxr

rtnv/Ntird

*

ICinrf

fhO

AO

-

.

ii

^

make

>

_n

:

what

.

.

n

1

ricrr_

does^tne aciiu
100

u

<x

f

The avowea

Reserve

Federal

V

the

rate were highest at <61 1 billion
on March 28 1956 lowest
t $0 5
billion on Jan 4 and nn Tune 97

bimih!

.were $0.7
,

Rediscounts and

j

Tools
hassev

S fnn fmm
of men.

fjanks')

eligible

engipie

panxs)

loans, ts one.

ana

Another .s the power
the minimum

reserves of member
"banks of the Federal Reserve Sys-

required

required

the

lowering

By

reserve

(legal reserves, that

ratio

is, the member bank's deposit in
the Federal Reserve Bank of its

are

-

-p

—1

-

banks

if

tvta«,

c_

p^nge^e

,•

no

nation into depression

they. undoubtedly could do if
th
'
irresDonsihlP
Having

as

right touch

the

at the

L mofiUZ ant and
flll

a

of

j

rentral

e!onomip?

,*n

hanirin«

natJons

S Sum Se
quired
minimum
reserve
absorbs

'
reserves,

excess

ratio
which

True, it is

Gx6rt0(i

the

on

credit

whole

^nTdoet have\igndiLnce.0
raicu.

me

icnc

icuistuuiu

are

in

Federa] Beser^
indebtedness of from O%
down To

loans

the

give

chance

0.3%

say

Federal

to

exercise

^

j

But
't
debt

o| to

years

as

Tn
in

our

the

mature economies in

curtails: the-bank s lending power. Western

World, can a prosperity
is the openh
.
tpmnprpH
that thi
operations. If the Federal ri
f
business activitv can be
Heserve System buys government made to
off without a
•bonds, it issues a check to the There
rifecMn
idler, say an insurance company. the aceumulation of inventories
The seller deposits the check in which comes about as
u
f

S

ReS the
whkh

Bank

crfdhs the ac-

member bank's legal reserve

increased

USTaSiiSto

no

ing.

TT

which

phase

has

different

more

business

b

plant

an(j

who want

men

equipment

and

f®3"! 3.. 1 the member bank is resources for the production of
the^ seller of bonds. H .the g00ds to satisfy what they deem

itself

JFederal Reserve System is selling

lionds, the member bank's reserve
is reduced, and its lending power
2The
Buyer Qf tbe
is
reduced.
writes

bonds

a

check upon his
sends it in in

and

account

payment to the Federal Reserve
which in turn debits or dethp
creases
the mpmhpr bank s sol
member hank's account. The fourth means of con-

IBank

,

PS

trol is moral suasion, warnings to

bankers

and the public, but it is

debatable

just how effective this

To

hp

a

Hpmand

rising

~R.it

a

reserve

banks, located in large cities other
than New York and Chicago, must

~a~

have

reserve

tV» J

«T

j

the

of

prosperity

under

been

banks

Republicans

since

way

the

ui.xv/v, w

1 mm
the

tiiv-

and

unemployment

where

in

this

ensues.

rising

tide

is

the

increased.

permissive. Banks

may

be in-a position to lend morp

h,.t

j
f
..
,
ttey do not necessarily do it. '
That

U,




_

at

'

sparingly indeed,

and in the last year as this up-

million

dollars

comparison

in

to

billion.

,

ma

t

'+1

power f

Mr

Hoovi

the

111
inari\
in: • loans

prese

has

hoi

$75.4

No wonder the

publicans can boast of prua{
a
prosperity based in part
super-piling-un

a

of

debt

R

up<
of

all right.

But it should have do:

earlier.
-

I do
one

not
can

20%,

i—l-

supply"

the

of

money

i:+

—i

Board

be af-

can

well

may or may not be

and judicial

are
so
sp^irfngly used,
along with the changes in the re¬

ratios,

serve

to

seem

powers

to

System

failed

tp

of

Go

equiDD

temperament for t

With Mutual Distiibutor

would
use

(Special to The Financial Chronicle)

the
KANSAS

it could have used earlier

prevent this burgeoning

pros¬

Not that the prosperity is

unwelcome,
of

the

have

the

dangers

very

it

are

more

come.

With R. S. Dickson Co

The Federal Reserve's control is
exercised
but

Avenue.

unwel¬

but that

overdoing

CITY, Mo.—Cecil

Kirby has joined the staff of M
tual Distributors, Inc., 1016 Bal

over

through

them

it

affects

entire banking system.
over-all

(Special, to The Financial Chronicle)

the member banks,

view,

the

"V AT""' ■'"Vs

the

Taking an
of all

loans

CHARLOTTE, N. C.—R. Corg
Rose is

now

affiliated with R.

Co.:, Inc., Wilder Builj
ing, members of the Midwest Stol
Exchange.
Dickson &

Joins Hannaford & Talb
(Special to The Financial

segmept o£ the ihflation. this in-

SAN

Chronicle)

FRANCISCO,

Calif.

now?
of

As

compared

26%, 20%,

"v/t"

the
14%,

to

and

it

means

of

control

that

it

ln

(Special to The Financial

the maximum

figures the law

Bache

&

Co., Dixie

Termin

Building.

With Sheffield & Co.
(Special to The Financial

Chronicle)

NEW LONDON, Conn. —
mond

T.

Neal

has

Ra

become

nected with Sheffield & Compa
302 State Street,
Two With

?u rep®nt wa§e agreements, and

allows, and with rising rediscount sumers' goods0^? o^p^ducers"'
rates, could have caught the banks goods, as if this could continue
in a squeeze play. It has not on and on. Maybe it will But

Chronicle)

CINCINNATI, Ohio —David
Kennedy has joined the staff

our

are

recen

was

Joins Bache & Co.

that it should have waited

tive

Rose

with Hill Richards & Co.

is

doing what it is doing, but
so long
and should have done so little, in
scarcely using the two most effec¬

mfsTcalhor

Mr.

^and permiu!"g th® street.

maxima

to

the

f^cted through the open-market
high position they hold.
operations. Yet when these two

minimum reserve
piling up of demand upon demand
13% to 26%, from 10% to for scarce resources.. The criticism
and from 7% to 14%, re¬ I have of the System is not that

spectively, for the three categories
of
banks.
And
where
do
they
stand

know the answer, b
overlook the fact th

of

As in the c^ of the banks'
ra^The^deral bankVredTt a^nd mar^may01^aPP?}ntee?'^
Reserve^lis°the
fulcrum by lvhich
^ we11 ^uipp
-

'1 S8h th® cconPmy> bring- Charles R Rose has rejoined H

of

quired

Hamilton
Chronicle)
John W. B

(Special to The Financial

MIAMI, Fla.

a°d ^bar*es

—

,

SHSiSS =~:
• *'osns American Sees,

i

runaway is allowed tolonger will which-are the
go on, the in banking.
severe and the
onger
banking

more

since

date; and

$104.5 billion.

members

m™„ra"OS,Couid have the Sreat" Past inflation, the increase in the
'
ng 0 15 est effects, in the central reserve money supply. They are not themunpossible' and the longer the cities of New York and Chicago,
lrlflation, but the results
a

into

one-third ' num
uue-imru,. from
»V*
Ul

Thae BotS ian increLe tCe ^ hifhe^w/gef and nefmRrinv "the "ato"i &
ratios

too

*ki

$30

the! White Hduse°°h

Hl[ 1 cilSr
increase

about

the System has, yet it has

used very

time

this

ciuviui

idle, flation, it could have raised the we are in for further inflation.
Just minimum required reserve ratios Tbey cite rising wages as result

sbou,ld have? If too much is ap^ .*9° soon» our human and

power

been

rr

,

_

consider the most effective

many

weapon

came

*•

ii.

_i

first

departed
tween

P°we^ ° require^ member tanks crease m money supply, spreading

SSS5 #3?3?
Xd
laS the'TaneV6 'Sf?P"
lending

"*•

j*

;

some

stands

capacity

together, touch which the Federal Reserve
desires to encourage should"if
-lending
it can lower the rediscount rate, lower the minimum p

this is

»

•

"ratio ofnotip^
? t ? f

powlrTo rMuire'Tember

in

These techniques work

If the System

city

ratio of 13%; reserve

now

productive

from

billion, with

^

^ repeated experiy St^nd, at 20%>1}8%' and 12%»
niCa
™ces ^ tL^ast thev o^erest rfpechyely. and have remained posgesses.
ces i^ me past, txney overesti at these figures since Aug. 1, 1954.
tSdes than7 the yd cancel! IT the Tbese ra*?s were Put into'effect Is Friee "Rise Inflation r or Result
prices they expected
receive daring the mild slumP pr0sperOf Inflation?
prices mey expectea to receive. and
booming of ^4,
^nlcitv7 than
ity- ^bey are still in. effect. If the- -i? beT.e anoither aspect of the
C^PlCltyr^J^
Board really wanted to curb what
?Tardf the credit
utilize. Inventories
allowed to
regard as a dangerous in- writers
freely "redicTing "that
"rua off' while production slows,
are

1956, loans

increased

$104.5

permission and encouragement
the System.
On Dec. 30, 193

^th

right place, and what is the right

.

■banks'

*

serve

'

'

*

perity.

. _

.

from

ceieration effect in capital investment

slightly

of business

eager anticipation

men w.ho wa,nt to participate in

The same result ,s

with

achieved

banks

billion to

r

Between Dec. 5

1945, and May 30,
all

banks to their customers have inthan 1.0%' arJd country bainks, lo- creased'Trom $30.3 billion on Dec.
in? cated in smaller cities and towns, 31, 1945, to $104.5 billion on May
™us'have a
7%-Buj 30, 1956. Here is a veryTmportard

third technique

lnarket

"bank

strictive steps?

^ not c-ntrols

Reserve much
its authority.

ic

circumstancesgo by.
are never the same
the

W1
un

and

fair rediscount rate. importance tions at most of a few . hundred Now doing something about it
estmate of the
the

t^me Surely thls is more in the nature
it fs lubT f'j tap
the
than a
UU..UL

power

allg ^ £Governo?s deddl

right

if

thought.

in

swing in business has been coming kinds ; In J an election vear
and lower- still if compared to the to
the
climax> scarcely ;at
tl,
loans of all banks.
•
■
Weekly figures are given for the things are getting out of hand a
It may be argued that this is not last year, and they show -varia- decides to do
something about

absoiute decrease can be fective only if banks
a the Board wants to make

its

or

are

election year to take these

an

no

4^^

:

this

4

compared^with

inn^ annfmk matfu^e Hnchjuiged Reserve Requirements
respective district, divided by de- know what the Hght
! What of the other techniques?
posits), the bank frees excess re- th
-2ht tJtg }
Act of Congress, the minimum
city banks
New York
S^LbryeaWseMtthdeepmo™sbhyb^ - ~ "S' to know, for -rve ratios areinset. Central and
reChicago must have
minimum
P a:ia5rease lts depots by tne enabie tbe Board

^e

Republicans

1953

In

+o

much lower if

final

one

year,
June
thpv totalled <660*? huu™
'
highest figure was
Dec.
31,
1952, thev were
lion and the lowest, $23.2 billion,
billion
* On
Jan
1

*»uuiu

the loans of all commercial

lug

1
acceDtable
acceptaoie Slble „Now. aQ men ln that responposjtjon would willingly

lower

or

raise

and

mtn

And

did the Federal Reserve wait

fulcrum by which leverage can outstanding loans of around $100
h„

•

lowering the rediscount rate, me
price charged banks for buying
or lending on their
(the member

tern.

*

the

^

^'■«1 v»

^

a

group

0| these, raising or agement of tocreaseof bankcredrt

—-

1

—•

o^pmrchasing^ower anS^ot^om^l^r6 i^edmissiV!
4n circulation.

4U

4

oniy i.3% of total loans of member banks.
And both percentages

has sevwhich it can

by

techniques

-

A

Committee, consisting of the seven
members of the Board and the ret-»

Reserve

Federal

The

the

held

system

$24.2 billion of government bonds

1956, discounts and advances were

most sobering resDonsibilities ever
most sober
g r
P

«

the

1945j

Election Period

On

dates.

■

wishp<?
the Onen Market
wishes, the Open Market

RnarrJ's
Board's

Reserve's policy is to spective Presidents of five' district
boom-and-bust combi- banks, can sell bonds on the open
tiation.
But it. certainly has not markets. If one of the methods
is
not successful, a combination
avoided the boom part of it, and
of any two or of all three can be.
lias taken only timid belated steps.
And right here lies
one of the
How then can it avoid the bust? ^

The

31>

Timing of Restriction During

shows

wv

the

avoid

»o

selected

manv

the

at

but

year,

every

^l
May 4' 1955> and June 27.
tbese holdings-varied behankf%;in4 h/iiinn
'?een' $241' and $232 billion.
fh/BUedfraJ°BJfd^c ^
/lgure
$25"9 billion' and
hankJ
30,
through
27, 1956,
^dis^ount
$25.9 bil-

■—

.I

ibe Federal

eral

instead
Dec

System

Reserve

of

ci0Se

_

member banks totalled <673 Q hil.
~
~ - i;®
iqafi of
meroial hank*
n'hiiiirm-■ nnri
'
of au pan^s, $104.5 billion. ' vP Between' 1945 and 1955, the highaii
S
Yet;
discounts 'Tor *'rediscounts 1 with*
"•
—
is the fSt
was
1950.
From 1952 at the close of
borrowings oi thJ
which tb„e„low^st'$20-7 billion on Dec.

J-i-

or>tnol

look like,

formance
too little..

"

Federal

l.u

at_•_

_

■■

j

i

....

»orU4

--—o

_

"

.

advances of $732 million on May the^miid"slump oFl953-4*; there
Federal Re- rediscount rate and making bor- 30 are about 1% of th^ $73.9 bil- has been little open-market acis expected to come in and rowing more costly. And fir]ally, ilon Gf loans outstanding on that tivity
which
would affect the
orfoin
i-f
Konlre^orn
cfill
nAAnlPQC
fit
thP
everything all right i again, if banks are stiU heedless of the date. At the maximum noted in banks'power to lend. Here is what
rv
-

v v.
serve

•

,

the Right Touch

posite. It can raise the minimum
required reserve ratio and absorb
some excess reserves. - If a bank
finds that its reserves are less
^
*
than are required.% must either
let loans "run off" and call such
loans as are callable, or secure
more reserves. " It can get more
reserves by rediscounting eligible
and acceptable loans with the
Federal Reserve Bank of its district And here the . bank can
tighten the screws by raising the
-

1_

rr

be

is done, the

damage

And

However,

Not that ex¬

business cycle.

the

Having

But

must be moved.

when crops

can

badly safely done.

was

,

in harvest time

as

ocrv

increased lending

that

The ®?Fvef .ac*10n really does stem t
Bulletin" of tide of increase niurhf +n credit, t
m bank
imward sniral
some figures which the July, 1956 july> 1956 does not show the bold_ upward spiral ought to peter o
issue of the "Federal Reserve Bui- jngs 0f government bonds by the after a few months.
f
power.

established leaders

.

jspectai to the financial chronicle)

"G^tJSELEY, Colo. — Henry
? inflation. Now goesthis increase witb' American become *affi'hp
has -Securities
m money .supply if on, further Stehunark Eighth Avenue. C
price

nses

and

wage

increaseg

can

pany>

151§

Volurhe

184

Number 5584;: . The Commercial and Financial

ontinued -from page9*v

; u,

Chronicle

total productive or exhaustive ca¬

.

,

(1993)

pacity can be established.
V/'.i

Inequities in Analysis of

l-u.cu

txxc

,

annual write-off is computed

ac¬

cording to units actually produced
extracted

or

Industrial Investments

during the

This

year.

method is very vulnerable. Deter¬
mination of total productive
or
exhaustive

when

campared with method III.
application to an example of
aDjtal assets worth $1 million, However, when compared with
method IV,
method II proceeds
scrap value of $100,000, and useful
faster to the end of the sixth
year
"ife of 10 years.
and method III to the end
of the
This example
shows largest
lifth year;
thereafter, method IV
variation of report valuations be¬
moves at a quicker
pace.
tween methods I and II at the end
of the fourth year, a difference of
Three Other Methods Used
-241,892.70! Next follow metnous
Another three important meth¬
'and HI at the end of the fourth
ods deserve short
mentioning.
year with a difference of $220,160
First the one of Section 168 of
and methods I and IV at the end
the Internal Revenue
Code
of the fifth year with a difference
granted by the Office of Defense
of $204,545. In each of these cases,

al

cotlliiatcu

Based

capacity

involves

a

great deal of uncertainty, far be¬
yond that of every normal esti¬
mate. Where capital assets subject

flated

current

serves

snouia

these

profits,

There

re¬

classi¬

be

propeny

should

definite

are

be

2i>

steps

undertaken

to

that

protect.

fied

as,,.liability, ^serves.
Con¬ Ihe^inyestor frpnjtae multitude of
trasting contingencies whose fu¬ principles and methods in corpo¬
ture birth

uncertain

is

properly

are

all

of

these

certain

surplus

rate statements of

in

render

ardous

or

future

often

though presently not yet fully de¬

mere

arise

the

in

.industrials that

financial

are

obligations

cases

to

which

and

reserves,

comparison haz¬
outright impossible and

make analytical opinion a
guessing game. Laws should

terminable in amount.

Often, the be enacted that authorized special
accounting method of creating and commissions, industry associations
maintaining the reserve through or any other authority suited to
to
physical
exhaustion
are
in charge to operations is indicative establish
uniform rules and regu¬
question such as mines,
wells, of a liability (or valuation) re¬ lations for report
principles and
quarries, woodlands,
and
other serve.
On the other hand, it is
methods, applicable to every cor¬
natural resources, the prohibitive characteristic for
surplus reserves poration in the particular industry
cost or outright
impossibility of that they serve managerial divi¬ group. These rules should not af¬
accurate determination or exhaus¬ dend
policy through retention of fect corporate tax accounting nor
tive capacity makes this method
corporate earnings or that they methods
of
keeping books and
in
many cases appear as one of fulfill
legal obligations in connec¬ records nor financial reports for
pure guess work, subject to re¬ tion with the
financing of senior
peated

revisions.

One

example:

equities

management purposes.
But the
investor, that means the public,
as majority
owner of the various

funded debt.

or

proved reserves of crude oil of the

I is slowest 'to reduce Mobilization through a so-called Texas Pacific Coal & Oil Com¬
Distinction Between Valuation
of
corporations should receive finan¬
original valuation of capital as¬ "Certificate
Necessity"
for pany ..on .-March
£1,
1956, were
and
Surplus Reserves
cial reports in identical or affili¬
sets. Compared herewith, the dif¬ emergency facilities in the inter¬
simultaneously
determined
b y
est of national defense
Quite uncertain at times is the ated industry groups on a uniform
ferences between methods II and
during the three outside
engineering con¬ decision between valuation and basis
that
facilitates
financial
IV, III and IV, and II and III are emergency period. This is actually cerns and
by company! engineers1
surplus reserves. Foreign currency comparison of different corpora¬
minor:
their
largest
variance the "Straight Line Method" above these were the four
resulting es¬
holdings, inventories, investments tions with a degree of certainty.
amounts to $58,133.55 at the end exemplified as method I, but with timates:
75,180,000,
107,870,000, in
subsidiaries, especially abroad,
of the second year, to $33,382 at the difference that it fixes usable
109,160,000,
and
114,850,000.
A
life of capital assets
the end of the third year, and to
arbitrarily at range of 39,670,000 barrels of dif¬ may have declined in value against
60 months.
last year's report figure or eise be
25,671.70 at the end of the first
ference!method

•

'

year.

write-off

higher

I.

method

Next,

-

II, III,

Methods

does

So

IV

and

all

than

method
I.

"Unit

Method" or, in

assure

along

the

is

used

for

capital

Third, with quite dissimilar
sults, depletion of natural

depletion,

assets

whose

Section

Depreciation

(Reserve)

nual

90,COO

2

90,000

Assets

90,000
180,000

3

90,000

2 70,000

"

90,000

6

90,000
90,000

7

1

10

clearly understood: the higher the
build-up and the lower

460,000

ent

370,000

write-off

280,000

900,000

100,000

Report

Depreciation

celerated

205,671.70

205,671.70

2

163,370.85

369,042.55

3

630,957.45

129,770.09
103,080.06

498,812.64

501,187.36

601,892.70

5

398,107.30

81.879.41

683,772.11

6

316,227.89

65,039.13

748,811.24

251,188.76

51.662.42

800,473.66

8

41,036.92

9

841,510.58
874,107.37

25,892.63f

0.2956717,

sr

=

100,000.

computed
under
fAmount increased

the

by

formula:

$!).(># for

10th

in

344,030.00

656,003.00

475,200.03

524,800.00

104,960.00
83,968.00
67,174.40
53,739.52

4

5

580,160.00

419,840.00

828,033.54

171,966.46

864,016.77

35,983.23

9

10

214,958.03

900,000.00

135,983.23
103,000.00

I-

since

.

R-

C.

above

20%.
f-Chance-i to
provide only $34,393.20.

Sum of the

Years-Digits Method*
Accumulated

Fract.

Annual

Rate

Depreciation

Depreciation!"

0

(Reserve)

AreetR

10/55

2

163,636
147,273
130,909

9/55

3

8/55

4

6/55

6

836,364

441,818

689,091

114,545
98,182

7/55

5

163,636
310,909

5/55

556,363

558,182
443,637

654,545

345,455

233,637

10

736,363

65,455

801,818

193,182

49,091

850,909

149,091

2/55

9

81,818

4/55

3/55

7
8

32,727

833,636
900,030

116,364

1/55

16,354
.

See.

16?

,

tI/.~>5:




the

guishes
serves,

p

1

re¬

valuation,

and

classified

surplus

or

grouped accordingly
on

Reserves

the

liabilities

to

ple

exam¬

at Dec.

followed

is

sified
able

u s

this

valuation

as

to

procedure
clas¬

reserve

reserve

applic¬

outside

investments

distin¬

uniform

cf

considerable

with

net

worth

figures

valuation

deducting

re¬

re¬

from their respective asset.

apparent

and

ot

the

from

nounced

considerations

cult

and

analytical

in

involved.

situation furt

needed

are

Diffi¬

very

fine

amounts

fre¬

complicate

To
er,

dom

nouncement of the

be

announced

Mid Continent Adds
ST. LOUIS, Mo.—John J. Glen-

a

great

deal

of

ployees' pensions and sick bene¬
fits, for unused balance of fire
and similar losses, for guaranty
and services where ex¬
therefrom conform to past
experience, for renegotiations, for
reconversion of emergency facili¬

goods

penses

ties,

all

these reserves are

often

surplus

reserves.

operations

thus

When charged
offsetting in¬

has

non

become

associated

with

Mid Continent Securities Corpora¬

tion, 3520 Hampton Avenue.

With Dietenhofer Firm
(Special to The Financial Chronicle)

SOUTHERN PINES, N. C.—Elston
A.
Garrison
is
now
with
Dietenhofer

and

Heartfield

670

Southwest Broad Street.

Joins W. E. Hutton
(Special to The Financial Chronicle)

CINCINNATI, Ohio—M. Alfred

variety of financial
principles and methods applied to
important items of corporation re¬
great

ports wita the effect of substantial
differences
in
analytical results,

Heck

their

face

of principles and meth¬
employed by different corpo¬

crepancy

ods

rations

in

identical

or

(Special to The Financial Chronicle)

CINCINNATI,
L.

Smith

staff

else

of.

is often

a

common

evaluating
an

The

Ohio

been

—

Clarence

added

Reserve

ti

the

Investment

affiliated

Where principles
and
methods
differ
widely the
analyst is faced with tie burden
of (ither reducing, if passible, the
to

of

has

Company, Dixie Terminal Build¬
ing.

Joins Donald Sloan

industry groups.

differences

with W. E. Hutton C~

With Reserve Investment

value.. The

task becomes that of a
meticulous investigator to ascer¬
tain identity,
similarity, or dis¬
analyst's

is now

Co., First National Bank Building"
He
was
previously with Westheimer and Company.

permit csmparison of fi¬

sometimes

and

and

name

later.

(Special to The Financial Chronicle)

Conclusions
The

at

exists. Reserves for em¬

new

location of the combined firm will

reports of different cbrpa-

thin

o»\

CHICAGO, 111. — The firms of
Taylor & Co., member of the Mid¬
Exchange, and Rogers
& Tracy, Inc., will be merged ef¬
fective Jan.
1
according to an¬
nouncements by William L. Tay¬
lor, Jr. and Ralph S. Longstaff
Mr. Longstaff will be Chairman of
the board of the new organization
and
Mr. Taylor President.
An¬

presented
in
corporations'
reports.
"-5
" "

rations

quite

an¬

meeting"

ing and solving the .issues is sel¬

nancial

confusion

Secretary,
annual

west Stock

financial

The borderline between liability
and surplus reserves is

the

Rogers & Tracy and
Taylor Go. fo Merge

in

the material
correctly understand¬

for

Boop,

that

s.

ana¬

especially

.substantial

of

Trucksesn,

Jan. 10, 1957, at the Barclay Hotel.

ratios and ether

on

results,

V.

Differences

points enter at times.
profcuna effect

A.

of the Association will be held

and

reserves

above.

Herbert

Studley, Shupert & Co.

in-classification and grouping have

does not

is often difficult and dubious.

to

Co

the

treatment

uncertainty

lytical evaluation

the accepted treatment
liability reserves

liabilities>v ahd * surplus

Correct classification of reserves

of

.V0''o JoIln A. Thiers, Janney,

surplus reserve.
LacK

combine

to

and

members'.

new

Dulles & Co.; Rooert G. Rowe, Jr.
Paine, Webber, Jackson & Curtis'
Walter D. Fixter, J. W. Sparks &

ana¬

report

Corp.

members-

new

membership in tho

Derrickson, Walstoo

deducted

or

following

five

elected to

often

are

be instructive: the finan¬

may

cial

The

a

Gover¬

arerH. Reeve

proportions and
picture changes substantially
whether they are added to equity
else

of

The

considerable

or

Pa. —At

Board

Association.

the

from assets.

the

Philadelphia Securities

Association,

Orrin

are

has tremendous effect

t.ie

between
valuation
re¬
liabilitv reserves, and surreserves.
For
analytical

serves

or

16,363.6363.

an

char¬

surplus

as

reserves

lytical result.
of

has

decline

contingent

of the

were

be in place.

liability,

reserves

view

incorrectly treated as contingency

900,000

(b)(3) I. R. c.

100,000

imprde

classification

Common

-

serves

1,000,000

may

Whether
as

But

reserves.

classification

quently

Rcnort

Valuation of

and

Reserves

while

IV.

further in¬

reserves

comparison of capital assets.

v/ith

"iRite:
would

future

overwhelmingly

Uat

and

variations

crease

is

"StrpfeKtS."- 1(n (b>(2>
Ant Line Method"

1

arbitrarv

purposes,

900,000.00

Yea-S

common

find

we

capital ass'ts Jacks
character; that it is

write-offs and

335,872.00

785,041.92

of

268.697.60

35,983.23$

8

664,128.00

731,302.40

42,991.62

6

7

usu

depends on
other managerial policies aoplied
in different ways and mostly ob¬
scured in financial
reports; that
various
methods
of1 computing

820,000.00

131.203.03

of

be clas¬

reserve may

valuation

as

meeting of
nors

United States and Canada, or else

summarizing,

quite

(Reserve)

180,003.00

is

appears

fear

if

as

In

valuation

1,000,000.00

3

assets.

use of their various categories
capital assets. Even if they did
no way of adjust¬
ing their report valuation to the
same
denominator for different

Valuation of

180,000.03
164,000.00

future decline

to discretion.

whether management's

decisively overstate the

there would be

Report

0

to

of

of

Depreciation

But

reserve

in

Accelerated Declining Balance Method*
Annual

2

slow

A

ally do not indicate the methods

adjustment.

Depreciationf

1

(see

Corporate financial reports

100,000.00

Accumulated
rs

sified

PHILADELPHIA,

re¬

of
General
Motors
31, 1955, presented
among its reserves a "General Re¬
serve Applicable to Foreign Oper¬
ations" in the amount of $141,667,396!
The
analytical
picture is
entirely
changed
depending
on

even

125,892.63

900,000.00

168 of the

Code

corporations.

"Rate:

Yea

emergency

Revenue

valuation of capital

900,000.00

III.

for

write-off, how¬
ever,
increases present earnings
and burdens future ones; it may

158,489.42

32,596.79

above).

199,526.34

1»M(I®,(K)D

ing on

serve

a

method

Internal

794,328.30

to

values.

the

Elects New Members

actual

Depend¬
the degree to which future

decline

acter

facilities under Section

(Reserve)

1,000,000.00-'

10

of

pres¬

As

and

Valuation of

Annual

Depreciation*

0

7

are

correspondingly lower
in future years and earnings will
profit.
A
quick write-off may
build up a latent reserve in valu¬
ation of capital assets and create
a cushion for future earnings. This
applies particularly to': the
ac¬

Declining Balance Method
Accumulated

4

alleviate fear
wide open

of

reserve

asset

of

tion will be

190,000

inflated

Phila. Sees. Assn.

treatment

case

valuation

as

classification

consequence,
reserve
accumula¬

earnings.

630,030
720,000
810,000

II.

1

duce

in

reserve

decline

decline.

future

about

perience, the

write-off the higher is the reserve

900,000

Years

aoplies them

the

of

of

practical impact
of this
of
methods must
be

The
variptv

90,000

9

Rev¬

exists

doubt

probable, espe¬
cially in accordance with past ex¬

90,000
90,000

8

Internal

fear

No

from these capital assets.

income

730,000
640,000
550,000

450,000
540,000

the

not to units extracted but to
gross

910,000
820,000

360,000

90,000

:

5

of

natural deposits and

1,030,000

1

613

Code, establishing fixed an¬
percentages
for
different

enue

0

re¬

"Percentage
Depletion Method" .as offered by

Report
Valuation of

Depreciation

re¬

the

under

sources

Straight Line Method
Accumulated

4

of

cases

subject to

Production

"Unit of Depletion Method" which

II

Annual

Years

of

basil

them.,

or

(Special to The Financial Chronicle)

—

PORTLAND,

Ore.

—

Harry

E.

Moore has joined the staff of Dai-

Either sld,C. Sloan & Co., Cascade Build¬

almost Herculean task.

ing.

*

The Commercial and Financial Chronicle

Thursday, November 8, 1956

...

(1994)

30

The

Continued from first page

answer

not

were
as

1 As We See It

certainly a possibility that in time it
cally different world situation.

is

will create a radi¬

as

or

possibly

be

to

done

to

sideration of

we

not

would leave

so,

I

80%
that
are

as¬

If

that

us

us

undertake

can

open

recon¬

over.

of

firms in Wall Street is

tions

can

be

of

one

siderable flexibility in

created—partnerships

While the person may look

Now let

us

home, too, very real problems await.

con¬

that posi¬

or vice-presidencies—without too
much trouble for the person who
demonstrates unusual ability.

here and there.

The election is

corporations

are
only a limited
top positions, such as
the
treasurer
or
the
f'narmial
vice-president, I believe the situ¬
ation in most investment
banking

has^not already

fate

such

Contrary to the situa¬

industrial

there

number

to the danger of being "played
some

in

where

i^ot be done

agonizing

are,
and it follows from
that the more people
who
at the top in the buying de¬

tion

Leaguelof Nations.

an

buying depart¬
particular firm over

our

that level.

foreign aid situation? a Not to do

suckers"—if indeed

overtaken

There have
been-—it is more accurate to say there had been—sub¬
stantial reductions in the outlays of the Federal Govern¬
ment after the present Administration took office. Spend¬
ing, which totaled some $74.3 billion in fiscal 1953, came
down to $67.8 billion in the following year and to $64.6
billion in 1955. This is not nearly so far as they should
go, but it marks a very commendable record for only two
years. But by fiscal 1956 outlays were back up to $66.4

now

whole

tour

Kremlin—other than to produce,
for

revise it.

well share the fate of the old

And should

Domestic Problems, Too
At

are

with the

sociated

place of real influence despite all this, something will

it may

accurately, to reveal a rift in the so-

more

majority of the partners

abroad

partment' means; ultimately* that
there are more jobs available at

have

rather different turn if it is to be

called Western powers.

in. most major invest¬
banking firms a substantial

Today

ment. In

a

to go to the lengths in support of the Arabs that
be required to maintain the standing that they
have been trying to achieve in the East. No one, of course,
can tell where all this Middle East business will end, but
of much benefit to the

•

ment

fluencing the various members of the world community.
The Kremlin has never felt it necessary to pay it more
than lip service.
Now both Britain and iFffance have
treated it with contempt. If the organization is to attain

eager
would

a

in the absence of the tumult and the
should do well to turn to them in the utmost

we

suggest that we must .think rather
carefully about the future of the United Nations, and
possibly revise our assessment of it as a means for in¬

a

it will have to take

aware,

Events

path in Asia and Africa seem
and unencumbered as it appeared to be

smooth

people at the top and
people who are starting, at the
bottom, and considerable oppor¬
tunity has resulted from that foi
the people at the bottom.
the

in, ;jthe campaign oratory so far
but now that we must face the future

seriousness.

few weeks ago. Despite all that has been said in
Moscow about Egypt's rights in and about the Suez Canal,
it may well be questioned whether the Kremlin would
have had Colonel Nasser enter upon, so rash a course as
he has chosen. Nor is it likely that the Russian leaders are

only

tween the

These matters

us.

mentioned

realistic way

shouting,

Nor does the Kremlin's
to be

a

are

we

in

perfectly clear to

seems

even

get dowiigto business.

upon

buying

department work as his
life's work, I. think it shouldn't be
overlooked that while

Continued

from

Career

page

working in
department
he
is
foundation of back,
ground and experience which wll
the

15

■

cial, officer.

that

decide whether

of

the

can't.resist suggesting

I

a

rec¬

ommended reading to an academic

group such as this. If you want
an excellent descrintion of the in¬

creative thinking? As an example

and its management, so

company

a

fit .him; well for a possible oosi'.tibn in a corporation as a finan¬

Cpporfunities in the

Securities Business Discussed

billion, and the most recent estimate of the government

buying

establishing

Of work which re¬
vestment banking business and an
we want our name attached to the
quires considerable*1'creativeness,
intimate historical picture of the
security that the company offers solving recapitalization problems,
operations of most of the maior
to the public; and secondly we where you are trying to get rid of
firms, I suggest you read Judge
wish to protect ourselves in view arrearages on securities or trying
Medina's opinion on the invest¬
of Section 11 SEC Act, civil lia¬ to eliminate non-callable securi¬
ment banking anti-trust case en¬
from
a
capital
structure
bilities, which states that every ties
titled The United States of Amer¬
underwriter shall be liable for the through an
exchange of securities ica vs. Henry
Morgan et al. I
total
amount
of
the
security is a real challenge and one which
Somehow, someway, we as a nation must find ways
think you wili find it very worth
which he underwrites. The basis the buying departments of invest¬
and means of .not only halting this newly developed up¬
yvhile as would your students.
pf this is that if any omission of a ment banking firms* are wrestling
ward movement in budgetary outlays, but of. reinstating
material statement or an untrue with all the timefiQi* consider the
what appeared for a time to be a downward trend in* the"* statement about
the company's case of .a companj^ where the stock
By PETER PHILIP
budget figures. And we must not be slow in.getting at,it* business or operations appears in is closely-held and the manage-.
IV. H. Morten # Co., N, y. rs*v
its
registrationstatement ■ and ment-wants to soil-some of that
As we have heard over and'over again during the. cam¬
Before explaining why I feel a
-people buy securities- based' on stock to the/public, but they wish
paign, this country today is enjoying the largest volume .• ■that; misrepresentation; then you to retain absolute cdntrol.. Should career in the municipal bond busi¬
of business it has ever known-, - larger, in fact, than had are -liable, for the- securities
pur¬ the stock that they sell be limited ness offers an exceiieat, oppor¬
been imagined but a very few years ago. The Jncome of ', chased/ by them- at the public .voting or should it be non-voting? tunity, I would' like very quickly
tnese, can it *o: d^finn
T consider *o ne of
Offering price. Thi}«,- your invest!- ? K it is either
its citizens is at a record high. If at such a time we tnjlst
mu¬
jgation has to be thorough in order. pe sold in the. important., states? the basmt differences ?*».
have a Federal
for the current fiscal year

places them at $69.1 billion.
The greater part of the increase in this year's estimate
appears to be in the largesse to be handed out to the
farmers, but there are other items that are on the increase
and other plans for huge spending that do not appear at
all in the budget figures as yet.

we can

or

not

type

.

'

*

budget of nearly $70 billion in outlays, ;- &6 determine what the material- -Can it be listed on- security ex-r
nicipal business from the rest of
surplus of no more thap some $7GCb facts .are before: you- can mdke a * changes? The best example of this
..atCUx.r '../a Uijal'UfcSS.
.j
million, what can we expect when, as will certainly hap~_ decision as to whether any of type of a situation, of course, is
•in the first instance, the term
-them have been omitted or not.
-the Ford Motor Company, which
"hiuniCipajtHiionu cealer" is «nm°pen at one time or another, business activity and the gen- As a participant; in a* security *for a long .time^was held by; the
*vrhat of :a> misnomer. W e actually
era! level of economic welfare decline appreciably?-Are
issup whiehr -is managed" by 'an-* Ford 'family and- now is, in the
;dealiin? obligations of states and
we on the way to an acceptance of the New Deal .notion
other'*firm, your- underwriter's •hands of the public. However the
^poiitifeal.^subdivisiohs ' of states.
liabilities. remain^ the - same, but 'Ford family at the present time
that an astronomical national, debt is of no concern, and
wThere are general* obligation
,

and

can

manage a

.

_

•

,

that further and

repeated increases* in it

are

quite in

the managing under¬ -still - retains v absolute control by
retaining
40%
of
the
voting
However, we make/a power.
reasonable
Not only does -buying depart¬
investigation
w-ith;
whatever facts are at our disposal; ment work occasionally provide
In the third category are proj¬ the
individual : with
an
oppor¬
ects
which
are
hot
necessarily tunity-to .make some money, but
it is also
extremely interesting
suggested by any company or, in
many cases, even known to' the and educational work for several
company. They are the- result of reasons. In the first place,- much
independent and original thought of the work, is the result of origi¬
and cover such things as possible nal and independent thinking and
mergers and the terms of such there is considerable satisfaction
mergers, refundings and recapi¬ to be derived from seeing your
talization, and include the pur¬ ideas documented.Jm final form.

we

ac¬

strain.
than

As

During recent months the Federal Reserve

System has steadfastly refused to substitute its created
funds for inadequate saving or to create funds with which
to supply the commercial banks with reserves which
they
in turn could

use

mercial banks

business that

for such

have

so

purpose. Many of the com¬
extended themselves in loans to
a

they hesitate to

chase and

much further on the
capital funds. In these
circumstances, a Federal Government that is vigorously
reducing its outstanding debt would serve to ease a situa¬
tion that threatens to be
distressing. A government
which; on the contrary, enlarges its debt would greatly
aggravate that state of affairs. Steps taken by the Reserve
authorities to ease the situation
by pouring created funds
into the market would, invite
very serious consequences.
0

go

are

time

a

in dire need of

such

-

finding capital and when it would be
greatly to the advantage of all that they do so by means
.of the sale of equity
securities, can we afford longer to
endure the handicaps and encumbrances that the securi-A
laws

ties

place

upon

the

markets

seek

-

to

where

corporations
In other words, have

the funds they need?
not conditions now arisen when we
must

can

no

longer afford

postpone realistic reconsideration of these New Deal

monstrosities

the

fervor of

which

the

excesses

of

the

'Twenties

professional reformers foisted




oil

and

timber

You

upon

and

us?

are

exposed

to many

as

ment

work

classical
functions

covers

thereof.
*.

of

the

investment
and

banking
provides the in¬

upon

with an opportunity to
great deal of imaginative and

the exemption from

erably* lower yield

pals appeal; to
investor,

com¬

many, industries and
better idea, as time pro¬

confronted with is

problem

that

so

you

different

a

k

a

different type of

result

of

crash and resultant

few

Wall

people
Street

'Thirties

dividual

War

there

II,
are

and

and

investigations,

looked

for

between
the

market

end

jobs in
early

the
of

World

consequently today
significant' age gaps be¬

that
date.

issues are

nature

in

the

main

part of our

business trading is done on

unusual

the -stock

same

term
with
the saihe coupon, but the bulk of
the
municipal- new issues are
serial loans. Because of this seria

.

a

the

on

issues due in the same year

,

as

amounts

corporate issues

due.

turnpike

Largg

.

opportunities today for. people in
buying department -work; Largely

|

period of 20 years as com¬

all

are

companies which tyou are financ¬
ing but also in your own organi¬
zation] which is. somewhat un-.
usual and opposed Jo the general
experience of working for a large
corporation.>
are

often an
'

pared with

top-level people,; not only in

that there

in a high
institutional

who is

one

erally niature in serial
over a

are ^ con¬

stantly being forced to utilize
mind
and v your
creative
ability; and finally,^you have an
opportunity to work constantly

I think

than: corporates
Munici¬

Thirdly, municipal issues-gen-

your

-

Federal

taxable bonds.

other

or

problem that you

are

,

depend

j.ncome tax vand therefore can
.offer our;, securities at a consid¬

gresses, as to how. our' economy
functions; Each

do

a

*

f

In the next instance we

investor.;

a

dis¬

there are revenue
bonds supported by an earning fa¬
cility and paid from the revenues

tax bracket*

with

most

city, town, -school
or

have

the FPC.

Many of these projects which
the result of your independent
thinking never reach fruition, and
normally the investment banker
is
not
compensated- unless
the
transaction which he suggests is
consummated, but the rewards for
completing an ingenious transac¬
tion can be very respectable.
With this brief outline, I think
you can see that buying depart¬

a

panies and

are

this, when business enterprises

as

credit' of

trict,. etc.,

-

Those Securities Acts
such

sale of

properties, sale and lease-back of
oil tankers, airplanes, filling sta¬
tions and retail grocery stores. In
addition, they include acting as
agents for companies in merger
negotiations, providing corporate
financial advisory services to cor¬
porations and testifying for com¬
panies as financial experts before
Federal
and
state
commissions,

basis of their present volume of

At

bonds based bii--the, full faith and

.

placed our financial resources und&r serious
a peonle we want to spend substantiallv more

we earn.

on

gation.

The economic pace that we are setting and the degree
in which we are operating with borrowed funds through¬
out have

rely

writer *to "make the major investi¬

cord with national" welfare?

basis rather than
lar

of

amounts

what

worth.
In

a

bond is
.

this

distinction

issues

are

subject to

competitive
negotiated

yield

to

addition

municipal

a

talking in do-

rather than
sales which; might be

inctonnfi

bidding

Irt' larcrp

turnpike IS"

Number 5584

184

1

oiunjc ->■

Sought with me a
S'paper. "The
^pr"

The Commercial and Financial Chronicle

matter, of interest

a

as

...

ment
to

of our
Daily Bond
copy

and both of them hapnen

be represented on this

Beyond

the

growth

panel.
that

we

daily paper. have already seen, the future, I
State of New York would feel, is fairly well assured. In a
Ltise on one of these pages way we are almost a depressionfact that it is going to come proof industry. If the economy of
the United States, after its recent
to the market with $50 million
bonds and syndicates historical tremendous growth, should stop
for any reason, one of the most
nature would be formed and
obvious ways of
en put their bid in on the date
stimulating acThis is our

2
-

tivity would be to build more
roads, more schools. ;On top of

ecified.

just briefly
e highlights
that might be a
ttle different
in our business
om the rest of the security busithink those

j

are

that

population that is just reaching
the
high school level now, and
when

the talks you
„ - ...
have heard, on the syn^

they

V/tJf--

ear, or

icate

tremendous surge

a

of

Otherwise
r

0$S

have

we

school

will

work, the trading depart¬

get

through
high
through college, we

and

need

more

schools,

more'

(1995)

a

corporation

idea before that

He

corporation will retain your firm
as an underwriter oi tneir securi-

for

an

ties. "This is best for you,"
has to be sold in

a

way

and it

that will

keep the corporation on your side
or one of your competitors will
be in the side door there pretty
darned quick. We are all selling.
We

have

to

practice

ourselves

among

selling

within

the

in-

-

through the 20-year
1941 the volume of
issues that came into; the

Jbakiwnu

dicate

i

•

t.

'vb.yu-

Department

Stanley

on

of
Morgan
the proposal that our

eW

market

qnicipal

qimnlv

tax-free

of

onds, was very little over a bilon dollars
each year. It varied

*

ma*billion even to maybe $1.2

«?,♦

Jv

fnen

f

k

«,v,DrQ

illion, but it was fairly steady at
bout a billion dollars in new is-

.

^language .and,the

business

point)

Veterans,

rge, veterans'

igh in '53
f

new

loans., It

$5%

as

issues.

and

other

went

as

are

billion worth -

In

1954

we

"furnrrke1 year." It

was

found

were

'ell and
every state
t their

own

lanes

as

to

feasible

to

uild their own1
turnpike, and
result there were almost

for

the

requires

investing

.public,
.

So

r.

I.-feel

sure

.

m

saying

that.

-the future in The municipal busi-,
ness is quite bright.

as

hether it

would

be

*"...

$7 bil-

qn of new issues in

*

By LEE PRATHER STACK, JR.

1954.

R. S.

1955 some of the
turnpikes
,,West Virginia and Ohio were

Dickson. 4k Co., N. Y. City"

VI am to talk-on selling, and I
doing quite so well, so the Telieve.in iselling. I think selling
is inherent, not only in the securi-'
qsmess lost some of the turnpike1
ties business, but in every busintnusiasm and new issue
volume
ot

ronped

down

flich was

still

to
a

$5V2

ness.

billion,

—

-

We b-s t

.

-very, -verv -hefty

e r*-

about the level

f

The

figures

o

show: that

bond

Now

the hands of

was

have

this

c

are

a

b n

ti

o

valuable
i d era--

s

n,"

a n

d I

think he i s_C-

darned
as

V)

right

pertains to

u r

r

-

business

because,

is

money

.

volved and

L.

P.

Stack

into

V.
V ...
: •-*>
-.me that is
pretty valuable, v
13 hiirGn
debt iooreased some r There was. another one, "deliver
into
bondage," and don't
think that hasn't happened in our
escHho f!fures» I think, certainly
business. Some very valuable and
rv-tremendous §rowth "fine collections:*changed hands in
n see
thQt'S* enco"ntering. .You 1929 as a result of someone be.

Maan„Tnd total 01

rdL

in

stockholders

approximately

8,630,COO people, and I think it is

companies

market
you

the most

as

by the New York Stock Exchange
showed that ownership today is in

definitely, increasing. Now, that
only about one out of
every 16 adults—or you can state
it in terms of family units; one

went into
mortgages and had enough private
placements and lease-backs, your

corporate

think of

we

A recent census of

Pension funds
great buyers of corporate

ble. If the insurance
pulled out of it and

trouble.

the word gets around
*% is sri11 a very low figure

enlightened country in the world.

I will brush

amounts to

in

out

more

10

of

family units own com¬

So you can see we
haven't begun to scratch the sur¬
face in retail selling.
stock.

mon

We

funds-

ways

of

be

that

also

can

the, small

"f

retired policemen to get out and
pound the pavement with mutual
funds. Thesis this ever»k^
attempt on Wall Street to broaden
our market.

and show
is not a

argue

investor

made

the

lennium,

argue^the point. Our job is to in¬

so

that he is

more

nishes

are

a

broader- line- of nterchan-

public's ownership par¬

to actual sales or selling on

firms today

Wall

the

and "* above
^

opportunity

There is
can

no

make

limit
if

he

those

as

on

a

Selling can be

stepping stone. If you

heard about,
yourself
to
whom
is

dis¬

are

can be selling
institution
on
calling, and there

you
an

are

you

awful lot oi that down here.

an

I would

the majority of your

say

institutional investors were origi¬

nally

salesmen

came

or

out

cf

I think today
the
trend,
as
these .gentlemen
have mentioned, might be, more
towards research men or buying
Wall

Street,

and

department men, but there as still
chance for the good salfisman_i£,

a

he prefers to.
of the

b$

on

the other side

fence.

•

As for remuneration,

ahd

heard

I

a

very

A*

it varies—
disturbing

thing last night. I wish I was on
the

other

of

side

the

table

and

could ask you

gentlemen about it.
of competition I
find we are up avakist, an0 I will
give you^ the figures our fellows
Here is the kind

"start at. I heard that some indus¬
trial

who

officers

company

are

going around recruiting promising
students

petitive
talked

benefits

to

it is unlimited," but look

ing all this big money you have

are

finding

a

very

com¬

situation. Recently I

with

a

man

in one of the

biegest oil companies and he was
almost at
the end of his rope.

what anyone

wants

I say

it another way.

satisfied in.it, if you are not mak¬

unlimited.

is

cash

at

sharing plans," and hospital plans.
Over

hate to dwell on
involved, because

I

Street,

the actual

respon-' the form of pensippplan^ppQfttr:

dise today than ever before. Peter

the

crease

We need salesmen, and we need ticipation in common stocks and
good ones. It was mentioned that .if we cap increase that participa¬
in the 'Thirties no one came down tion a fevy percentage points each
to* Wall Street, or very few peo- year I think we are doing well.
pie. Fathers who have been in the We have a big job to do in ed¬
business ' discouraged their sons ucating the public and presenting
from coming down
here.
My a proposal for acceptance.
father advised me not to come
As

who refuse to
presidencies. But it is like most let their sons come in the firm,
other jobs, it is work.;
and in some cases it is getting
The halcyon days of the 'Twenpretty drastic. There is no one to
ties are pretty much gone: The
take over, to represent the capital
Yale, Harvard or Princetdrtfgrad-<~ that the family has -in the firm.
uate, as I understand it,-could There are other firms where older
come down here, learn how to fill
partners are- pulling* capital out
out
an
order
pad and hit the to liquefy their estates. We need
pavement and that usually meant - gooot people down here,
the golf coursps .and .the. coek^ail
* After the second war, there was
parties —* and we ail saw what a big influx of good college gradhappened. The< abuse of credit,"' uates. They were going to make a
lafck of researchf-iand violatiort of million dollars in about two years
good faith was not a "very en^- —and a-good percentage Of them
lightened approach to selling:
1c,ft before^ that. It js^- not easy,
r Today,
salesmen are much mofe They didn't go o"t and ™Pke a
enlightened. I don't think many - lot of money selling. They got
salesmen are put out'on the-road discouraged and left.
*.
=
until they have had - at least
aThe same thing happened after
year under their belts within the
the Korean—"police action." It is
firm. It usually, involves working
npt proven out yet, whether those
"in the research department, buyboys are going „tq stay. I think the
ing department, the cashiers cage,, record would indicate a degree of
:etc.y so that a-salesman, is a pretty stability occurring. Each time this
well-qualified person before, he ..survey is .'made fewer and fewer
-gods-out" to sell -securities, today, are saying they are undecided or
That is definitely true of the peo- they are going tc leave the busiple selling to institutional inves- ness, and I think some of these
tors. The qualifications for sales*-other factors mentioned are a part
men are being upgraded constantly
of that. They are getting better
.by the individual firms and their training. "Security benefits" have
National Association of Securities been instituted and are offered in
Dealers

if everyone did own
might be, and I will not

stocks. It

.'

can

sible, better controlled and more
stringently Regulated.
The
securities * industry
The
securities
fur-

have

got to find a way to
it prof¬
itably. Now, whether everyone in
America should own stock or not
is debatable. I am not going to go
into that. Irving S. Olds has in¬
ferred thaT if would be the mil¬

market.

top

who

at

anyone

We

reach those people and do

There are some figures here
briefly showing the potential
market that I shall mention in a
minute as an example of our efforts to reach an ever-increasing

earlier; there will al-

room

firm for

any

'

,

he .that-' i-!-

Tor

-

ln an°ther

are now

so

and

markets then

good

same

for what

another
daresay you

.

^countering iS to look at 1946.
total
outstanding amount of
m5?
194^ amounted
Iniost u
Million. Today it is
"andtl ie5 tuinf'* th.at: Total out s of ui
billion (that is
tha+
end of last YeaiV 1955).
ove?^3mf psriod United States

!u }

of

had

we

1951

to 6%—of course

was up

and I guess

.

°ugh August of this "^ear new- 4,hink is good *?ue volume is
is, "transfer:,.?
just 4% higher
an last
of
property'
year.
-

^er way of stressing
nrm,nf°as vo'ume that we

liberal

institutions

.,

ugcf bonds. This
i-gives - severaI-W
year the ou t -'
definitions—?•-

14855.

type

who would not

thai

'55, that

suit

bonds
investor. I

stock. Between

common

•—bib

Corporate

bring in the business. There is no down here. There
municipal bonds hereto - a, limii; oh
partnerships Vor vice-*v owned by people

education

new

behaving

began to look

traffic

ryou

therrii-' a-Bo

at

mg

Jersey Turnpike and the
ennsylvania Turnpike — the
-—

of

many

fore, but they
^are at a new level
now and youhave to
start look-

as

at the

rand-daddies

wonderful selling mentioned

be able to go out and
the investing public, "There

consider

had

hat is known in Pur business
e

say to

a

to

of

these excess fearnings over
savings and life insurance expen¬
ditures. In 1949 only 2% of those
people had any desire whatever,
or tnought it advisable, to go into

have also mentioned institu- profitable customer which is no
are all interdependent j.anci ho. one tional sales—we call it wholesal- doubt true. We have increasing
department can s u/r v i/v e long ing — and there are individual costs and diminishing profit mar¬
without, support of the 'others, sales, which we call retail selling. gins and the rest pf it, but so; have
Therefore, from my point of view,. Now, there are some firms that the grocery merchandisers, so
we are merchandisers, and I am have even gone so far as to hire have the dry-goods merchandisers.

going to confine" my remarks
a notlce~'
each of those 20 years: Then,
primarily to -the sales' organizaable gap between their age and
tion:
?
uring the war years-^in 1942-3-''
\
'Vr' ' .
-5 volume fell even below the tpe yemnger mem coming up.
Now, I believe that you gentle- r
illion dollar a year level. It was
.:
soon as adman has learned men are probably most interested
the municipal
own
as
low as a half billion
jn hearing. jvhat is involved in
tools of his business and-proved
me of
those years. After the
securities selling so that you can
his selling ability there is a direct
ar with the tremendous backlog
better answer students inquiries,
step up to real- responsibility.
f public improvements that were
j
cannot promise that " everyone
eeded, schools,
bridges, roads, y f inally, the recent sharp change who comes down here gets rich as
la monfey rates, makes
municipal a salesman. That is not true at
II of which were deferred during
e war,
our
new-issue volume-' bonds, m the opinion of an earlier au
It is tough going, but there
tarted to really expand. In 1955 speaker, the cheapest they have js a tremendous
opportunity, and
ever
been
when
you
take into it is limited
got as b'gh as $3% billion, andonly by the individaccount the tax feature (and this
en in 1952 we had the
Ual's initiative. That is the only
beginning
otfers
a
man?, In
the
f the tonus
municipal, limit to sales there is, and, as was
issues, the war bonus
suss.like the Michigan Veterans

numerous

with

stability as a result of growth in
the Penslon funds, and also balde-anced mutual funds> and common

ues

nd Illinois

best like to do, or what
they thought most advisable to do

can
distribute a particular bonds. A few years back the corsecurity. We have got to sell" him *porate bond market was in trou-

n

Sn il mf In
e -°r a
•y^g^an^urour busmessy^it is
ti,
V U^lnelS'
Ihifr began in Business before The
•eberation proby

would

firm:

observation jnv no v£ty
bogds have to be sold,, tracts from the" importance' of
"anr!
gl^®nteed ■ various other departments;, they

arrive,

because

yield> suit

have had all this
right on over it.

sen

Regardless of where yields: that
the

1921

Preferreds*

vo

■

rom

which,

in.this category,

•

eriod up to

stocks,

institutions, ' are
desirable, because of a very
low effective tax rate paid by
them on preference stocks. The
effective tax rate on preferreds
for a corporation works out to
7.8%. They only pay taxes on
15% of intercorporate income and

dustry before we go out and try
hard-hearted retail buyers,
and we do; we have to. We have

the

..

preferred

numerous

very

you

selling end, are all power plants, every type of pub- on that.'He has to accept our prolie service which, has to come into
posal if we are to participate in
und in our business also.
the municipal market to be un- that
underwriting. So we sell each
N0W) the main reason why I
derwritten.
other first; thdnwe go out where
el that a career in the municipal
:
usiness is such a beckoning op"-: j .In summary, I think the-tre- it is really tough sledding.
mendous supply of new issues asQn an over-all basis then
ortunity, can be explained
the
sures a very fine
mply on the figures of dynamic
opportunity^ at, above-mentioned process makes
QWth which
can
be shown? S5^eV-RF „Pr!?ie
? ^ay
us a merchandising operation and
eided.
ed,

has

31

fellows

these

Philip has mentioned the-advan- money down here as a salesman,
of
To get around to this expapding
tage and The': attractiveness
tax-exempts? Our tax " structurOX market, oh attempt-to expand -it:

prospects

into

cases

being
senior

and

where

paid
year,

a

beat

had

Other

make

he

him

has

students

to
run

were

half salary their
and then start at

ithe New York Stock Exchange $6,000 a year- upon graduation.
in a recent survey found that only
.Nowj I .don't know if that is true
■suited To our bqsiness is, "present ^investment, I dhirtk, for the in-^23% of the adult population of
or npt, but, it is tough competition
^ proposal for consideration jin adividual. ? We :want capital gains this country could describe what for us. We can't offer that com¬
ons Githo mur"clPal, bond opera^ .i»av:' ps
to
.ca 'se?
acceptance." but we-also 1Want 'some tax ex- a common stock 'was,,.and within
pensation to start a boy nor can
ent or «?nLfS-1 separate depart- •_N©w,4hat doesh't pertain only to *emption 4f '-That- ds; The--.most rethe
descriptions accepted there we pay that until it is warranted.
al bond hi
y eVOted to munici- -the sales department. We are-all; warding and advisable type of were some pretty .hazy aefim- But I submit that our rewards can
few, ,~s' numbered only selling. The boys in the research fixed
income Suitable to- ones. tions. So there is a lack of knowl- be greater if an individual will
ver Sfin
f-re ' today there are department—They must sell their needs.
'
:
edre on the part of the public, I -apply himself.
untrv
lrms throughout the own-sales department first, get
That presents a very broad think, as to just.what our- mdusStarting salaries vary, and, as
Sam'
ngafied either solely or them excited, and convinced of field for an alert salesman. He is try and particular securities are I say, the new trainee, the sales¬
ePapa''0r functl()n of one of their the value of their advocacy. You not just out—or should not be— all about. And that there.is ^ lack man, has got at least a year to
have your salesmen trying to stuff
evidenced by
O
in the municipal have got tb security before they pie's, pockets ; securities in peo- 'of interest is Board' survey a Fed- put under his belt before produc¬
believe in.a
an^ Collect
the eral Reserve
which, ing his salary. The firms down
'
1 Can
thin* present the proposal for accent- check. He should recommend 'se-* for •several years now, has been
major firms
here, I think—and I haye made
who do not
ance
to customers. Your buying
curities to suit their needs and asking consumers with income of
Continued on page 32
municipal bond depart- department—they have got to sell help them in selecting the same. $3,000 a year and over what they
e

fart

way

ing delivered

nurrho3 f7eral decades ago
Aiim?^ °f ^a11 Street itas,,
n?a?ed ,'r. °U?—ut the country»\
e

•But

I

into

bondage.

think the definition best

has introduced an;- entirely dif?
ierent approach to the field of

.

-

-

o

A?"'8

■

LoTeSS-




The Commercial arid

)

32 5 (1996)

Continued from page

a

31

co

day suggesting obvious chances
make- money."- 'k'
■/*Perhaps the best

Career

to put it

way

rto you is to describe the. first IBA

Opportunities in Ihe

Financial Chronicle.

,

iheri,;the laftef WiU ffecetve ma' y

attractive offers from other finan-'

eial houses.

This is particularly

York where

convention that 1" Went to' back in

true Outside of New

December, 1952, shortly after I
joined the Syndicate Department,
Dealers from all over the country

Securities Business Eiscussed

Thursday, November 8,1958

the <?out>try^d"are
bow calling t>n Us. >;Th^/are the
type of .people that you not only
^ut
also enjby having as tiue friends
for a period of years,
i do want to bring up one thing

hgYibg .trained dho. .ypririff . work aU-over

once

you will have four or five very
good firms in. a city, a man will
get trained and all of a sVdden

_

.

that I think Wall Street is sufferanother firm will take a pot shot big from, namely, the crash hangmeet and talk at-him, offenng^a ^little j^g^er over. As I have gone around the

get together down there and some

of

canvass

ja

of

good cross-section

a

tram

cannot

you

your^whole

of the people you
""

them-

*

"

""

*

xieophyte
Now,
student,

MA

an

or

graduate

a

student, or what? Is he married?
How many children has he got?
What does he need to get through
year?

first

that

You

can

wants to jump over to the in- ticularly in syndicate work, that their young men by sending them or closely related to it and who
surance industry there is a fabu- it helps if y0u know what tne to New York to their correspon- know something about what is
lous opportunity. It is nebulous, it other fellow looks like and have dent houses, or to firms with going on. Some Way the Word is
is controversial, we don't know a feel of eachindividual man. We whom they have close relation- not getting over how attractive a
whether it will happen, but it is a went down there—I think there ships.
;
career down here can be. I think
..

it another way.

vary

distinct possibility.

of about 20 younger
I would say all of us

was a group

I hope I have not misled any- fellows.

Yoi^ can start them out at a lower

who was having tough going was:
a young Princeton boy, I think it
was, came down and he called on
this bank president year in and
year out. The bank president was
always very friendly, but whatever this fellow told him, no matter how fresh the news, the bank
president thanked him very much,

down here." After about two or
three days we got bored with this
line of talk so we got together, a
group of us, and had dinner one
night. We called ourselves "The
Sandbox Set," just to make our
point with the older generation,

fellow make?

he appreciated it, but hemad al-

fellow, he is

heard it. So one day .this

is not with
a New York firm, who at the end
of- his second
year had. netted
after all expenses and everything
else, $75,000. Those are few and
far between, but that is what I

low.called, him up and said,

originated the group in 1952 discussing the question as to whether
we would continue the party in
1955, There were so many younger meh dowh there who qualified
hy being under 40 years of age
We just thought it would be
impossible, to carry on because

vour .bonuses,
of course, at the
end pf the year can be a very
large factor here on Wall Street,
In bad years they are a very small

Xactor, too. I would say the averQrfg

starting wage in New York is
$4,000, and
you
could
it, I think, in these days,

around

bracket

by sayirie $4,000 to $4,500.

Now, what
There is

a

can

case of

a

a

hot in New York, he

*

when I say that there is no
what a fellow can make

mean

limit

Jones, W®- .have jusf.learned
>his. I think we are the first Pe0"

pie to know it, andT want to pass
it
^

on

*bis

to you,
and he told
*onS» involved story.

him

Mr.
very polite.
thank you very

J®nes».fs

on

bu* thave already heard it.

dowh :here if it is money that, he

Q

th

han(j

other

;'were

there

didn't

had

have

think this change has happened
over the years for whereas our
industry was a young industry run
by relatively young men in the
20s, it is a mature industry with
a mature group of leaders at the
helm. But it does create a problem for new firms coming into our
industlY- We a11 recognize it.
;
Any

,

person

who

didn't enjoy it so much because
there is quite a bit of pressure
involved in our work. However,
I think that there is something
you gentlemen can do to stimulate the interest of these men who
are thinking about future careers,
The stimulating side of investmeht banking, does exist, and the

i&working-fox^gf ud«ntenls; wefl

th? ?hS.S

a*

small firm will tell you about ■
...
*■£'V
,01y of
the hard-hearted syndicate men
v,
.
'
who won't give them participa- "
the buying ?feide-of our busitions in their underwritingSj but neSs ,in addition .to the regular
it is quite interesting to see the new issuebusiness there are the
relationships that have grown up problems of- setting up oil payover the years with some of these inentdeals^ working out mergers,

a

T

,

.

.

big enough room firms from all over the country. i etc- If the interest of young men
was asked to look up the.record can be awakened to.realize what
of - ope particular firm to giVe
going on in Walk Street, I think
tribute to a senior that they will look more and more
records that to Wall Street as a possible career.

a

"

There

is

interesting thing

one

*

I

m

concluding. We

Would

like

business.

in

are

of

Some

before

mention

to

changing

a

it

none

I did not.

assure you

:

.*

,

been /

has*

of you think I made this up. shoving

I
r

~

^

1

—

i

mentioned, here, ; the volume of
By ROBERT BALDWIN
various securities, the evolution of .-Morgan* Stanley & Co., N. Y. City
these-different departments such
s^idicatina " involves dealing

buying and research, and we
are still looking for change. Now,

as

4t.

mnnfUlT,

i

vi

...rv

^4

w.

n

with investment firms all
counirv

over

the

arid therefore in discuss-

4

n

think are

up into what I

positions

for
their
the nation,
They are representing their firms
in New York, with syndicate peopie* in ' the-, various ' originating,
responsible

firms spread out across

*

_

I

vear

problem

the

of

hold the gathering. I believe
mis- indicates not only the number

to

♦J*

[C

iast

few of us who

a

of it is coming across more than it
relationships, .in the 20s and the way for a'long-while; but I know
Speaking

went back—that he has been calling on our people since 1924. Now,
when you have been doing busihess.w-ith a man since 1924, he has
been, in issues and taking them

For example, in my own case,
I have a young nephew who was
15 last December, and I bought
him one share of stock for his
birthday and one share* of stock
good,:fak and bad, and working for'his: Christmas present. -They
.

fh*ms, who—in ,a sense are their hard for. you, you do build up a weren't very, expensive, but I
hfeblood, because they su*>plv t-^e sehse of stability. However, on picked two stocks, one in the
ncw secur>ities which the local the other hand, there have been a electronics industry 'arid one in
^11'tYlC?
tV\ot
VlOXTD
VlQ
wi

/-.orl 1 nf v»i ki

/a

In

1

4/\

r»

nil 1Y\

KA

nf

f

nOlIT

/iniii'n vn

/-»«4

«

v\/4iir<4-t<«r

**

%»

Jj
•*»
%■
%

stock

ing

reading
don t know^

There is-

ownership,
or
now
to the salesman, we
but we are trying it.

other thing on thc
tionzon that I think for the salesone

could be, the greatest mer¬
chandising
opportunity in
our
time, and that is the variable an¬
nuity.
Now, I am not saying
whether it is right or wrong and

man,

there is
it

lot of controversy about

a

between

different segments of

the industry. The mutual iunds, of

courseware opposed to it because
it would
give them a «?ood hard
Knocic

the

on

head.

national Association

ueaiers,

is

NASD,

of Securities

opposed

lr».e companies are

our

to

it.

Some

for it and

some

nre
it

opposed, (it is pretty amusing,
you get out a bunch of manuals

S(Jme, cross

mi

wiu ttnd
surance

out

jt

thi- table

at

have

the

companies ate

opposed to

gap

omcer

is

for

oos<

the

in

This

Robert Baldwin

an(j

World War

in

the

-IT

uja

«

L

?

•

I^fve
_incfa
.

..

tfpc

A

f

U

t

in

J

ortnuitv

so

forth.

the
dropping back,
and part of it definitely is related
to the young men they can attrdfct: T think in'New York it can

training there.

The number

la?1'

whether

v,ill stay.

these

you.

it

new

will

courses

The market since 1950
x jic intii net
XO.) j

me

^ v

the country is to sell the
j xj tu

men cf tne large ori^ion

the

hand

applicants

firms

will

to the

go

mncirW

iV° e
,1!! /

u.,

u.,

•

training programs. Morgan Stan-

ley does not have
gram,

but

we

a

or

;

come

pro-

through fresh out of college,

ing ahead.
I

various reports from the

think the fascination

Street

has

of Wall

tioned. I just want
that to be successful
follow a11 Phas<;s

stocks

jumping 2, 3,

or

5

points

check,

men-

market,
fairs, because any one event can
I must say, however, drawing
influence how stocks are going to from my own case, that when I
be or when an issue is going to came down Wall Street, I had no
do wel1- We had an underwriting money to invest, I had no backin 1950 of a company called Spen- ground in banking, and, quite
cer Chemical Company.
It has frankly, it wasn't the field that
f^own considerably since 1946. struck me or that was impressed
We signed an underwriting agree- upon me in college. After 10
ment just the day before the Ko- years in investment banking, I
rean War was entered into, and so have found it to be a stimulating
you can imagine that that had a'experience which has < been regreat effect on our ability to sell warding both financially and inthat particular stock. It has also tellectually. I onlv hope you genbeen mentioned, a very important tlemen will be ?ble to stir the
thing> the close relationship in imagination of our college gradwhich you work with men of ex- uates to the point where they will
tremely high caliber. The top consider our industry.
men in Wall Street now represent
the cream of the young men who
Joins Bache & Co.
came out of college from 1915 to

(Special to The Financial chtfwiclifl
1929»
the nature of our firms
MIAMI, Fla.—Franklin M. Pugh
is suqh that necessarily you work
a>-,d in .recent years there have very. plosely; with each and, every, ba? joined:-the staff vt Bache &
been top-notch ones from a
oi muse genuwnen. In, our
^uitxicasc'oecohd Avenue.
variety of colleges and they ar,e ^irm we always form a tepm to Mr. Pueh was formerly with Wadcoming from all over the co- n^ry work on every issue; In other dell &'Reed, Inc.
now.

There

are

certain

ad van-

?

words,

a

partner

a^d

a

senior

ftatistician or analvst, will work
Clement Evans Acd>
together and they will have one
two juniors who will go along
Special to T-ie Fin-ncial Chron-clf.)
of the business, and then in a v(} matter where they go to sit
ORLANDO, F1 a. — Albert C.
s^nse he decides and the firm will in with company officials, usually
'Fp{nk^, Jr. has. been added to tne
also decide what he is best suited
company financial vice-nresi-. staff of Clerrert A. Evans & C'oflif-?r anei v/nat ne iiite3 tne most.
ucdsuiei
ami
uie
int>
T
Tslftinnd
Rniliintf
f-?r and v/hat he like3 the most. dent or the. treasurer and the
There has been the problem of a secretary and legal counsel. The^e Many» mc., nuuana n
iiitTtl IldCJ UtC 'l UllZ Ul UUlCIlt UL tl
^
^
^
lerge turnover in these trainees
no better wav to learn than do
tages to these training pr-grams
because a man goes through a 12
to 15 months course, sees clit bluc,
it!
ji1uiili1s luuisc, kccs all sides

!

as

a

result it has-taken

some

who can stand

be sitting in with that, caliber of

men-

ahead with it
And one of the other things
in
the .number cf ycurg men thev ^rid come out with some top- that is a pleasant fact in our
i
."*"
-**"*&
mcji
mc
tumu
uui
wnii
»ujuc
iu|jl.icil
ia
a
pieascjni
iaci
b^ve taken on, but as you sit flight fellows. The smaller firms business, you see people coming

in

company,

ouarterly dividend

and he follows the prices of these
to point out stocks ini the'
' Pa8es «f
a person has the^-paper. J.thmk it has scalked
of industry, an interest there thaf will conforeign af- t'nue for many years,
been

already

a

I have been in a position where I
nave interviewed rrfany of them,,

d:«h*ib ttin-g

koowled




formal

do see a large num-

ber of young men each year who

e ar?d Talk to them, they do are
^•estment Deoole the insurant in" ^orry a.b°ut whether the younger rot
dustrv
eoinff
+n
ntrd nVX
J* )vlll.sUck when
gamg the
fnmn,
^ need- The.i gets tough and you don't s^e. the
s
is
iu times ours atiu
salesmen

larger

I firms where they know they have

happened to be in the buying department at that time and can

ilon sale-;-

™
j
co.,1Pnj

with

be said that the largest number of

rV ha<?a]- syndicate

01 a

tim<\

firms surging forward and on

IIrrnitieL^USinLTS ability cf their firms. The senior "of the bigger firms,
\ lesmen. ji members of these firms talk about-thin expense, to go

IE?
nffer

~

merger,

going on all the
continual change

lows that you saw leaving one day
for this industry, and another for

iu

inenrnnno

ex-

other

u

Vlng

'

ITiia

going
^

is

For

Securities

concluded by the influx in 1946
0f a iarge number of young men
of which I was a part. This was
followed by a drop-off—the fel-

^ stride to wards»has been rather exciting. Stocks
1.•
.at havc been
up- It has meant
5
profits for almost everyone. Part
seuing 300
Probably will of the selling job 01 local firms
of iocai iirms
all over

n'f ^

lAni-f
,

,

is

There

early 40s

i don't know whether

,

every

the

depression

people coming in behind

-

days
gone

and

caii0nally

rest of

,

each

hear

Union

e/"5™6 companies are

o

You

those

Have

ample there is the recent Eastman

i

yariame annuities. That is
fA
jromonru..

in

reasons

day of various mergers.

your

offer

vast

oc-

rJ,

i

the

prettv~ &weTl

f111'!3 of PeoPle 1 saw come through
look4°ut what there* was f amazing in the five-

I

k

see

described

ln+2 yeaf' year period. Tnere was a second
rSnJ tn
o> cril
^ iriflux that came in 1950, and any1*^ * rfc* tt lu- S
body who hopes to make Wall
,'rovioKii
Frudential gets street his lifelong objective is
7
+L0U
.the delighted when you see good
legislature the
v

will

known

various

down.

age-groups||

SL !nS !lTei
Jw'

Vou

well

were

°J- tho testify about the value of getting
a direc-

•

and

changes which have taken place,
Firms have come up and become
major underwriters. Others who

by

you

had

right after the war, 1946
1947, and then look at them
as

todaV

and

think

now

in

and

been

mcntioned
I

late

you another industry, and

wny most of the in-

inin!UfinL^i
senior nnana0i

ly the nation_
widesituaUon.

(Special to The Financial

Chronica)
^

DE1ROI1, Mich.

•

Kathry

Lynch has joined, the stafi
faced with this problem of up—you might sav, popping their Smith, Hague, Noble & Co., Pe«being able to give the men h<~ads up—ypung friends of mihe obs„ot Building members of the
bread training and there is whom I knew at college or whom P
^
qfnek Exproblem of the financial drain I have met since I fame into the ^ew York and Detroit Sto

of this training.

a

Firms find that

business, have

come

into syndicate

changes.

Number 5584

104

v

.

The Commercial and Financial Chronicle

.

(1997)

Volume

,
,

Remain at Boom Pace: Nadler

Business to

.*

in

home

building,

material

building

some

industries

foreign states, that i$ states other

which, -have, rthan

the

state

domicile

of

of

in time and

the

the tax

of preparing

expense

returns.

33

Another

point to

been

f od

unfavorably affected by the
decline in housing starts, and cer¬

trustee.- While

f

tain types of public works.

tion of mortgage investments may'* impose
differentrestrictions - on
be in the domiciliary state because national
banks
than4 on
banks*
of- the « trustee's
more
intimate chartered in other states,

immediate outlook may be threatened by certain adverse
°tors according to Hanover Bank Consulting Economist's
conditions.

review of business

:

,

,

"(5) How long the present boom
will

activity will continue vate indebtedness, coupled with
BUS1min£ pace for the remain- inflationary pressures, has caused
its
year Dr. Marcus Nadler,
considerable concern and is prid
Hin/economist to The Han- marily responsible for the Federal

last

be

cannot

forecast

with

•

pss

consulting

Bank,
Bank,
Oct.

over
over

Reserve policy of credit restraint.

declared

report
"The Busi¬

25 in
on

a

Outlook"

ness

by

published
the bank.

outlook

high

a

level

for the

re¬

mainder of the

year. Expenditures
by corporations for new plant and
equipment are mounting, commer¬

at

industrial construction is

high level, disposable

a

person¬

al income is

rising, and consump¬
expenditures are at a peak.
long as these forces continue
wether" trends to operate, business will be
good,
a s
increasing; even though some segments of the
corporate cap- economy are not doing so well
ital
expendi¬ and others have been adversely
i

'

evidenced

s

in such

"bell-

tures, the rec¬
level

ord

Nadler

Marcus

at

con¬

of

rcial

c o m m e

industrial construction, rising
personal income, and greater gov¬
Dr.3 Nadler
ernment
spending,
pointed out.

tion

may

be

demand for goods and

by

is

large, is strongly influenced
unpredictable
psychological

forces.

has

gency

been

felt

particularly

immediate outlook

.

the

in

halt

present

wage-

price spiral; and the eventual de¬
cline in private indebtedness, he
said.
But

setback

any

in

economic

ctivity will be of the nature of a
"rolling
adjustment,"
affecting
ome

industries

which

have

booming during the past
counteracted in part

by

been

and

year,

a

firming-

in the present "soft-spots," Dr.

up

Nadler predicted.;;
"It is certain

that

decline

a

in

business activity will be followed
y a

contraction

in

the

demand

for credit

and a modification of
he policies of the Federal Reserve

uthorities," he explained.
"These

developments

turn

in

should lead to lower
money rates,
igher bond yields and stimulalon of home
building and public

vorks, the
vhich

is

pent-up

still

the risk of

physical destruction in

the

those

the

to

locations
whose

economic

cause

and

.hardship

income

to

has

not kept pace
living. Eventual¬

with the cost of

ly, their buying would have to be
reduced.

"(6)
sound
cape

While

or

thev

is

economy

and growing, it cannot es¬
cyclical fluctuations. These,

however,
last

are

long.

adjustment

Summary

Summary

and

by

July

caused by the steel
strike—was

onths
ted

index

production

for

seven

(eliminating July)

142

as

against

136

Responding months
year*

on

in-

of

aver¬

the

for

of the

pre-

Although industrial

uS0 *ar ^is year has been
omewhat below the level of the
nm

,

..

carter °f

lOmiPf
loduct
.

and

1955, gross national
)b.vo,
disposable personal

not likely to go far
In all likelihood the

will be

'rolling' rather

come have been
higher, reflect-

aii2)uTllei
nrinC-

Prices.

Hourly

wages of work-

u<Ji1JTlanu^actur^nS industries
averaged

1 on

cost

permit

or

There has been

to 6%

similar

a

in

marked change

in recent months

rates

money

a

brought about by the effort
part

of

the

Federal

the

on

Reserve

Board
to
"apply
the
brakes
lightly" to counteract the power
of inflationary forces.
Corporate

in
$1.98 as against

having
rating, and
"AA" rating,

period.

same

It

is

that

generally understood
involved

costs

are

in

mortgages

of

there

the

servicing

the
even

involved

in

mortgages.
It
to
be generally

of

seem

understood,
are

costs

are

not

that

however,

additional

,

.u_

costs

both

a

vpt

tal hac
"as

of

1/2%

must

per

A

annum.

examine

statements in detail

the

in

agent's

regard

to

each mortgage and then duplicate
as much as may be necessary to
permit the trustee to render an

adequate
this

accounting.

means

least

In

effect,

duplication

a

of

at

the

payments of principal
interest and particularlv of

and

credit and

,efn stron? throughout
demand for cap-

Exceeded

«Sei-

the
ve

supply




the

present

the

matter

that

assume

complicated

become,

may

these mortgages

are

small and the

ently unattractive unless they can
be acquired at a fairly substantial
discount.

A

discount

of

6%

on

let

us

30-year mortgage will yield 4.52%
a year to
maturity after the serv¬

icing
the

agent's

charge

trustee's

charge.

fee

This is

rate than

a

but
and

before

would be

obtained

on

at

a

6%

discount

because, in

the

trustee "must keep ac- - attractive even after all charges
In
the
case
of
conventional
full accounts of all
T
1
there
is
relatively
and all decisions in mortgages,
much less bookkeeping and, fur¬
that he may eventually ac¬
to the other parties.
Those thermore, pension trustees seem

.

otners unieis. specifically
spe
j

others unless

to

do in the

trust

Added Costs

the

case

mortgages,

prefer mortgages of fairly sub¬

stantial

of

there

agent who is

is

a

and

with

the

result

that

invested

are

|

considerably

less.

Also, it may be much less difficult
to increase the interest rates on
conventional mortgages to meet
the competition of other forms of
investment, than it is to increase

the

discount

on

FHA

and

VA

mortgages-

that

portant reason why a larger por¬

VA

prohibition
bank

against

agreement

a

an

acting under
and

a
a

bank

a

to

lend

money

servicing

entitled to a service

on

It

au-

to

do

happens
is Illinois;

so

another

example
other states,
as
for example
Ohio, a New York bank may
qualify to do a full trust business

without
states

tax

mortgage

Other

consequences.

the

encourage

inflow

of

through specific
covering the problems of
estate title and taxes, but do
money

real
not

permit
trust

the

state trustee.
the

exercise

by

powers

statute

In at least

restricts

of

gen¬

out-of-

an

one

state,

such

invest¬

out-of-state

trustee

progress, however, has been made
in
this
field.
Pennsylvania re-^

trustee is included. The

as a

assumed

state

statute

not have

may

relating

leasebacks

any

specifically

but

the

to

prohibition

previously mentioned against act¬
ing under a voluntary trust pre¬
vents the taking of title to real
estate directly in the name of the
•

.

,

cently

of

name

corporation

a

trustee

laws
be

of

would

the

state

examined

not

an

mortgages.

enacted

statute.

The

ciation

has

statutes,

a

of

or

then

would

and

have

pacity
and

effort

an

made

Asso¬

forms

to

invest

the

of

out-

an

ca¬

mortgage monby:

other

covering
_

such

a

,

when acting as trustee."
ii.ff

Conclusion
It is

to

to

Bar

two

authorizing

one

an-

have

liberal

more

American
drafted

Some

of-state bank in its individual

iPf H?e

other

by

to FHA and VA

.

generally

m

that

recognized

the bulk of pension funds is administered by bank trustees. More
,

and

bank trustees

more

are

eval-

uating the merits of mortgage l'nvestments. The two major points
mentioned above are fields in
which the members of this Asso-

ciation can and should be helpful,
The interest rates are, of course,
set by economic factors but mortr
bankers

gage

be instrumental

can

amount of the present tax

but also

in keeping the mortgage money
rates at net yields that will rep-

to

and

resent

real

forms

of

only

to

provide

provide

for

for

increases

possible changes

in

the

the tax

for

laws

the period of the lease which

over

probably
Other

for

runs

laws

of

many

years.

state

would

the

also

have

be

to

termine if it is

require

that

examined

least

at

de¬

of

one

corporation directors be
of that

to

of those which

one

a

the

resident

Another

that

possibility

must

not be overlooked is that the state

might
as

such

regard

subterfuge

a

out-of-state

thing

to

be

permit

to

to

do

which

it

the

some¬

is

for¬

directly. The pen¬
alty for the violation of such state
laws

ment *

in

or

fine

a

rare

cases

effort

an

ll"*y ^iimuC W1mvCulc ™^

vestment

of

out-of-state
two

other

to

Mortgage

direct

a

mortgage
bank

major

inter¬

forth

stantial
be

made

by
the

discussed

show
of

amounts

available

investments

If

solved, the figures

above

amounts

money

trustees.

problems

here should be

and

could

that

for

sub¬

could

money

mortgage

that

additional

become

periodically to create
source
of
supply.

available

continuing

a

Now Steven Randall Co.
The

firm
&

Zener

name

Co.

Inc.,

of

William

B.

Exchange

40

Place, New York City, has been

®^eat to''not satisfaf inCi
?hanged
not
oi a corporation is not satisfac¬
corporation is
satisiacof

have

est in seeing that the laws of their
respective states facilitate the in¬

imprison¬

or

be made to have the property

may

competition

investments.

also

do

may

corporation

a

trustee

indirectly

bidden

bankers

set

state.

a

& Co"

«<?. Stever>

tory, then the procedure of estab¬
lishing
hold
be

separate

a

title to

the

examined.

the basic
must

In

estate

the

first

to

express

such

the

authority
The

sub-trust.

a

state

procedure
ther

to

as a

problem
will

who

this

Even

to

next

is

the

serve

is

or

not

as

the

question
end,

possibility of

tax

or

a

state
o.n

a

now

Co.,

Inc.,

901

Washington Street.

;

,

South¬
■'

Fitzgerald

(Special to The Financial Chronicle)

of

a

BEVERLY

gross

income

H.

Bresler

Cantor,

HILLS, Cal.—Simon
now affiliated with

Fitzgerald

&

Inc.,

Co.,

re¬

Joins J.

tax

the fees of the

Ordinarily
a

is

232 North Canon Drive.

tax

deterrent but the burden

B. Hanauer

(Special to The Financial Chronicle)

sub-trustee in respect of the prop¬

that is

is

&

With Cantor,

how-

taxes, and

the

west

as

the state laws must be made with
respect to gross receipt
ceipts

Walston

sub-trustee.

as a iurtner examination oi

being imposed

Oreg.—George Raffiliated with

PORTLAND,
Spurgeon

might regard this
subterfuge. A fur¬

examination

ever

(Special to The Financial Chronicle)

place,

problem is to consider whether
not

Joins Walston Co.

must

pension trust agreement

grant

create

sub-trust

real

erty within that state.

problem of "doing business" in

therein.

state

bank

acting

it is not the amount of such

the

York

ments

invested

and that is

that

It is not expressly stated,
however than an out-of-state bank

tion of pension funds has not been
in mortgages

New

a

com¬

to,'do"

YorlP'BPo-

New

of

which

trust

or

state

in

essary.

also

Covering Foreign States

This brings us to the second im¬

Involved

FHA

size

the administration costs per dollar

Laws

instrument.

In

to

statute

bank

laws

no

correct

problems.

many

another

the

the

In

a

a

a

so

vided

give

can

of the states that

one

a

as

Local

consulted

be

to

as

trust business in

eral

service

somewhat higher

and

authorized

in

pany.

recipro¬

state has

will, but that there is

a

follows.
to

reciprocal

a

Each

answer

statutes

a

transactions

noleftn
power to

has

to estates and trusts

a

as

it

the

to

answers

likewise

how

own

have

assurance

thorize

To show

foregoing.

its

frequently they

real

possibilities of taking title in the
'

than the morals of government guaranteed mortgages,
the
market place.
Not honesty then
the guaranteed mortgage
alone
but
the
punctilio of an yields can properly be compared
honor' the most sensitive, is then with government bond yields and
tlie standard of behavior."' Conse- those set forth above should prove

order

will

bonds.

tee is entitled to compensation for
the
additional
work.
Because

thing stricter

authorities

pri-

at

PenR°p trustee. This may not con-

well yield would be 4.74% per annum,
said by Chief Justice Cardozo of In the event that for policy reathe New York Court of Appeals sons, a fund is not permitted to
in the case of Meinhard v. Sal- buy corporate bonds and is
remon—"A trustee is held to some- .stricted to government bonds or

of

A'aih,RRnued to press on the
nonev^ril^ °£ hank reserves and
%. The •
e risen considersharp increase in

lines

Naturally, the trus-

defaults.

any

trustee

n

demand lor

st^te

on property withirrjts
boundaries and to foreclose if nec¬

benefit of others, and, as was

curhte

and

the

policy

counsel

problem which does not
exist in connection with cornorate

mortgages

costs

such

course,

from

provides

the

to

voluntary trust.
This assumed state may also have
a
statute which permits an out-

there 30-year 4% corporate bond selling

under

•

ap.ital

cross

time+imn—a

pension trust is

and, of case of the mortgage, some pay¬
ment is applied to principal each
decrease the
If the mortgage should be
ultimate net yield. The reason for year.
these
costs
is
primarily that a paid before maturity, the yield is
trustee is not investing his own increased and, for example, if paid
funds
but
is
investing for the off in 12 years, the comparative
for

functions

tained
state

authorizes

to

"A"

an

The index of count
fw
?rices in the last week parties have the right to scrutinize
iairS fl^er stood at 115-2 as those transactions and decisions
-gainst 111.3 a
year
ago.
onsnm
The and the trustee must be prepared
ew
nQeii pnce index is als° at a to justify all his actions to them.
™'
peak.
mMoreover, these in- Care must be exercised that there
s d°
not
violation of one of the cardincreaca
.Ss yet reflect the
com^odiiine In Pr.lces of many com- nal principles of trust law which
n thp
Th,lch have taken place is that a trustee may not delegate
ovprniop
of
a
discretionary
Rbe Past few weeks,
he

charge
trustee

,

Statutes

Some conception of the complex
problems involved may be
ob¬

funds of nationwide organizations.
easy

states

some

-

New York is

not

that

Model

itism toward any one
area, partic¬
ularly in connection with pension

record keeping of monthly paybe
explored.
If
a
corporation
maturi- ments is voluminous, the cost of
should be formed, it will be exinvestment servicing this type of mortgage is
even
some
with an almost prohibitive unless an or- empt from Federal income1 tax as
a
"feeder corporation" as all of
are quoted to yield ganization has available tabulatits stock would be held by a tax
over
a
4% return.
This repre¬ ing and other equipment and actu¬
exempt organization—the pension
sents real competition for mort¬ ally services a substantial
volpme
trust.
The state assumed in this
gage investments even though the of mortgages.
In any event, this
gross interest
rate on them has cost further reduces the net yield example may not grant a similar
increased about V2%
during the and makes such mortgages pres¬ exemption and therefore the tax
ties

vhlaJear before.

r.<=

reduces

bonds with about 25-year

past several months
marked by a proupwar(I spiral of wages quently,

.

yield will

decrease of 5%

a

place,

event of war, and minimizes
possibility of charges of favor¬

cal statute

than general in character."

11

n8 the rise in
prices and wages.

mL

an

amount of increase in the benefits.

does

The

in

the

that

conclusions

in

On

though the out-of-pocket expenses
are paid by the borrower and also

(1) Business
activity through¬
first nine months of the

high plateau.

in

acquisition

Nadler follow:

ustrial

result

Dr.

year—except for the dip

will permit

it is usually said

increase of one-quarter of

great,"

out the

a

an

there

Conclusions

and

or

1 % in the rate of annual

for

very

one

Unfortunately it is

Mortgage Money Source

basis,

demand

adler added.

r.

that

economic

dis¬

bound

out-of-state

increase in the benefits.

actuarial

much

the

upon

is

specific

decrease in the cost
an

area.

too

eliminates

heavy

is

■

,

of-state

As

cautioned;
■
-.
•
••
•
These include a continued "tight

mate

policy
dependence

too
one

a

any

in

Pension Trusts Possibilities

good, there are certain "adverse
factors" which could lead to a
moderate decline, the economist

leasing productive capacity and
productivity; a probable dip in
commercial construction; the ulti¬

This

in

voluntary trust

is

money" policy; an over-supply of
certain goods due to steadily in-

available, it is neverthe¬

conditions

14

page

estate

watched

opportunities

more

less desirable to avoid

under

Continued frow,

real

be

por-

If, however,
the pricewage spiral is of long duration, it

by

the reduced avail¬
ability of credit. The credit strin¬

nearby

concentration

optional

services

So

affected

of

because

econ¬

and

While the

knowledge
and

any

very

Business activity will

cial and

favor¬

The
able

"(4)
tinue

degree of certainty,- An

omy like ours, where the standard
of living is high and the

substantial

a

BEVERLY HILLS,

Calif.—Paul

Hanauer

joined the staff of
& Co., 140 South

Beverly Drive.

....

H,
J.

White
B.

has

34

The Commercial and Financial Chronicle..

(1998)

.Thursday, November 8, 195
1

'

mately 5.93% to maturity.
exercisable

Warrants

and

on

after Feb. 1, 1957 entitle the hold¬

purchase 50 common shares
company for
each $1,000

to

er

the

(U. S.) principal amount of bonds
at $3 (U. S.) a share to and in¬
cluding Dec. 31, 1966, the expira¬
tion date. On Monday, Nov. 5, the
common stock of Northspan closed

is

common

which have found favor with long-term

There

Fe has been

one

rich

are

in

provide

a

handful

of

tion will be made to list North-

oil

reasons

Stock

on

and

Exchange.

stock and warrants

span common

the American Stock Exchange.

on

The

•the

proceeds from the sale of
will be applied to a

bonds

program
involving
comDany's
uranium
mines,

than

other minerals

the

Northspan is currently* sink¬
advancing under¬
ground work on its properties
and constructing three separate
mill plants with a combined mill¬
ing capacity of 9,000 tons of ore

per

..day,

for

of

production

the

Additional

uranium concentrates.

funds to complete the $73,000,000

<Canadian) program will be ob¬
tained through bank loans of $15,000,000 from The Chase Manhat¬
tan
Bank and
$10,000,000 from

found

only

in

first discounted

as

Class

the

I

total.

the

Fe to

The

fashion

What

was

of

movement

theater.

Pacific

to

ascribe

the

location
included

industries

of

on

of

view
the

increase

sharp

line of the road last

gage bonds of
;

Northspan.

for

A sinking fund for the general
mortgage bonds provides for pay¬
ments of
and

$5,625,000
each

on

Jan. 1, 1960
and Jan. 1

on

July

1

on

one

Western

following comparison:
Santa Fe

Union Pac.

Southern Fac.

Class I

33.9%

34.1%

39.4%

1955

32.1

34.1

38.6

33.2

36.5

39.3

38.7

1953

30.7

35.8

37.2

36.3

1946-50-

retire additional bonds. The sink¬

ing fund redemption price is 100.
Optional redemption prices start
at 105%% to and including Dec.

1957 and thereafter decrease
principal amount.

to the

'Northspan, controlled by The
Bio Tinto Mining Co. of Canada,
Ltd., which, in turn, is controlled
by The Rio Tinto Co., Ltd., of
London, a United Kingdom corpo¬
ration, holds a contract from El¬
dorado Mining and Refining Ltd.,
an agency of the Canadian Govern¬
ment, for the purchase of uranium
concentrates of

value

of

gross minimum

a

$275,000,000. Such

ura¬

nium

concentrates are to be sold
to the U. S. Atomic Energy Com¬
mission and to the United King-

dom.

-

i

In

addition

tions, the

to

its

obliga¬

will have out¬

company

standing 7,190,364

debt

shares

common

of $1 par value of which Rio Tinto
of Canada and its parent own or
control

3,103,556 shares.

33.9

38.1

40.2

39.7

LEADVTLLE, Co1*),
&

opened

a

Co.

of

branch

—

office

M.

has

at

613

Harrison Avenue, under the direc¬
tion of George S. Casey.

Waddell & Reed Branch
MUSKEGON, Mich.

—

& Reed. Inc. have opened

office
the

at

941

Evart

management

of

Waddell
a

branch

Street

under

Clarence

J.

Kramer.

Joins Fewel Staff
(Special to The Financial Chronicle)

LOS
ford

A.

ANGELES,
Archer is

with Fewel &

Calif.—Mansnow

connected

Co., 453 So. Spring

Street, members of the Los An¬
geles Stock Exchange.




♦For

months

seven

reported

thus

far

for

1956.

100% dieselized the Fauta Fe
has achieved a wide gain in the overall freight service efficiency
measure of gross ton miles moved per freight train hour.
Of the
56% gain in this measure since 1946, the greater part—viz., 60%
of the gain—was achieved since 1950 reflecting the step up in
rate

Santa Fe

dieselization.

of
are

About

84%

of

the

revenues

of

the

derived from freight and in 1955, less than 8% from

this proportion reflecting the further
component in 1955.

passenger,

The modest debt ratio of

decline in this

the Santa Fe is another feature that

appeals to the conservative long-term investor. As mentioned
previously, there are. only two bond issues, both due in 1995, and
consisting at the 1955 year-end of $146,958,000 general. 4s and:
$45,981,000 adjustment 4s. The Santa Fe is one of the few roads
which have

^10 equipment obligations, all equipment acquisitions
being financed internally. The total funded debt of the Santa Fe
amounts to less than

In

14% of its total debt and stock capital -and

surplus as of the close of last year, and the $192.9 million total

represented a 42%% reduction from the $334.5 million total ar
the 1940 year-end, which at that time included $30 million of
equipment obligations. In the intervening period, all callable debt
and all equipment obligations have been retired.
of

a

substantial

part

of

the

two

non-callable

debt

outstanding by means of the Voluntary Bond Retirement Furid'
set up in 1952 into which is paid annually the lesser of $2,427,060.
or 20% of the dividend payment on the common stock within the.
year.
The 1955 payment on the common was $33.8 million, so
that for the present and as far as can be seen, the annual payment
into the Fund will be the $2,427,060, or an amount sufficient to
retire about 50% of the $192.9 million debt total in the coming
39 years unless there should be what now seems to be an entirely
improbable reduction in earnings and payments on the common
to the point where 20% of the latter would be less than $2,437,060.
Thus

representing under 14% of total capital and surplus and
only 33% of annual gross revenues,- and with interest charges
amounting to only 1.3% of gross revenues, and with maturity so
remote, the funded debt of the Santa Fe is no problem either to
the road or to security holders. This is somewhat different from
the case in 1938 when, due to a drop in earnings in that year of
"recession," and to cash needs for the road's extensive renewal
and improvement program on which it had embarked, the interest
payment due on May 1 of that year on the stamped bonds was
deferred until the following Sept. 1.
The interest on this issue
is payable only out of surplus earnings for the 12 months ending
June 30, but is cumulative.

constitute

the

greater

Interest

on

the stamped bonds which

part of the issue is payable at 2%

the

overtime

With operations now virtually

retirement

Earl

Denver

9 Mos.1956

the

income during the month of September advanced
$328,500,000,000 annual rate, according to a report from the
States Department of Commerce.
This was $400,000,000
above the preceding month's pace. It was $17,500,000,000 above
the year-earlier level. In this first nifte months, Americans earned
at a rate of $322,500,000*000 yearly or 6 %% more than in the like
1955 period.
1
a

United

each

automotive

operations

industry' last week

pushed

auto

emphasis on
to a six month's
Friday, last.

added

production

high, "Ward's Automotive Reports," stated on
Scheduled for .United States production were 117,675 pas¬
senger cars compared with 104,269 in the prior week and 167,278 a
year ago. Last week's program-was the highest since 127,277 cars
wpre .built during the April 22-23 period.
The statistical agency said the "auto makers aire "pulling out
all the stops" and sparing no expense to attain volume 1957 model
output and to offset crippling production delays.
- Ford Division is ordering 13 of its 15 plants for Saturday as¬
sembly this week and the entire -industry has placed 57% of its
49 factories on second-shift operations. Eighteen out of 22 General
Motors Corp. assembly points alone are on "two turns."
Final reports give the auto makers October production of
388.922 cars, "Ward's" noted, with General Motors Corp. taking
41.2%, Ford Motor Co. 38.4% and Chrysler Corp. 14.8%. Remain¬
ing producers tacked on 5.6%.
"Ward's" said domestic truck output the past week reflected
inventory close-downs at International Harvester, Divco and
White Motor Co., holding the industry to 18,920. units.
This week should find the truck count returning to the 21,698unit pace

of two weeks ago. However, auto output, 100,000
remains hampered and stands to fall

schedule in October,

again in November.

Programmed

.

for

«

below
short

r

Monday

last

the 6,000,000th car or
Continent, that is the United

was

truck of 1956 for the North American

States and Canada combined.

Steel Output Placed at 100.6% of Capacity

Also, provision has been made, as mentioned earlier, for the

New Scanlan Branch
Scanlan

Personal

to

37.3

1954_

to and including Jan.
1,1963. A contingent sinking fund
based on earnings may operate to

an

Some reasons for this change are the turnabout in inventory
policy from one of reduction to one of maintaining or increasing
stocks; the strong outlook for construction; continuation of new
plant and equipment buying; heavy railroad freight car backlogs;
a revival in appliance buying early next year; resumption of farm
implement buying on a large scale, and a big increase in auto
sales, Concludes "The Iron Age."

38.4%*

thereafter

31,

Central
by the

com¬

1955.

This

hand and sharply mounting costs on.the other,

Industry

"Iron A&e" survey of major consuming indus¬
the 1957 steel market will be much stronger
a few weeks ago.
It looks now as though
production will run between 118,000,000 and 120,000,000 tons for
a new record.
The previous record of 117,000,000 tons was set in
Meanwhile,

.

has consistently run well under that of the
District and of Class I for years as indicated

5

page

than had been indicated

the

in

year.

measure

from

tries indicates that

„,

tbis

which is most attractive for a stock of the

of Santa Fe common.

that controls do not produce one pound of steel and
pound the problem of getting it.
/

492

.revenues

common

prove

Santa
first

per

against $1.92 for

cents—again adjusting for the five-for-

60

The State of Trade and

Operating efficiency is one of the strongest features of the
Fe. While its transportation ratio rose to 33.9% for the
nine months of this year, or two points higher than that
the corresponding period of 1955 as a result of the lag in

The bank loans will be collater¬

ally secured by 514% first mort¬

of

extra

yield of almost 6%

Continued

permanent industries, 277 temporary ones, and the
enlargement of 197.

The Canadian Bank of Commerce.

$1.69
as

At the current price of about 27 this dividend produces

investment calibre

personnel to

the

an

split.

one

In company with western roads generally, the revenue gain of
the Santa Fe this year has been under-average, amounting to a
title over 3% for the first nine months. This let-down has been

in

to

of this year

but it is nevertheless estimated

$2.94 per common share of last year as adiust°d for
split in September of this year. In this outlook,

the

includes

The exceDtionally
strong uptrend of the revenues of the
Santa Fe continued through 1953, and while there has since been
some evidence
of a "topping out," the relative trend was still
better than that of either its district or of Class I through 1955.

surprising

amounted

it is reasonable to expect that the total payment on the common
should continue at the $1.60 rate of the past 12 months, which

build-up in the road's territory due to industrial decentralization
and the permanent location of plants in the road's territory.

particularly

Fe

the first nine months

the five-for-one

thes permanent

was

this

•

that the final result for the current year will not be too far away

gains of the

overlooked

the net from

year,

• \

.

that of
that of

goods and

military

was

Santa

the

of

.

corresponding 1955 period,

from

a

being probably tempo¬

-,

Earnings
the

a

rary, since this increase was considerably greater than
the Central Western District and very much greater€han

Santa

ing shafts and

is

as

uranium in either

having been $708,797 in 1955 and $666,000 in the preceding

share for

aijtd in timber, all of which
such

inflation

Santa Fe Pacific RR. In 1954 Santa Fe
paid $1 million, but Haystack nothing. This was more
and

year.

the rails.

of World War II was at

the

ada.

against

$500,000 each by Haystack Mountain

subsidiaries,

earnings from

source

growth of the Santa Fe has been most impressive. The
increase of more than threefold in its revenues during the years

construction

mills and other properties in the
Blind River area in Ontario, Can¬

hedge

uranium

Pacific

for this.

The

(Canadian)

$4.45

ronto

-

several

of the outstanding growth

$7 milion last year as against $6 million
million was paid together by the road's

was

In addition, $1

Development Co.

First, the Santa
situations among the
rails.
Secondly, it is a highly efficient operation which is an
important consideration in the present era of constantly rising
costs.
The third point centers around the road's low debt ratio
and its financial policy of not increasing its long-term debt even
to finance the purchase of equipment, but on the other hand to
provide for what is tantamount to a substantial reduction by ma¬
turity of the two non-callable issues which constitute the road's
only funded debt. Finally, the substantial land holdings; of the
road offer some promise of being a potential offset to hazards that
are more or less built in properties of rail operations.
These lands
are

-

19J54,

1954.

two

These include

investors.

pension funds, insurance companies, trust funds and the invest¬
ment trusts.

is a substantial and a
income of the Santa Fe. Earnings from

amounted to $9,295,359 last year as against $8,727

Oil dividend which
in

of the comparatively few rail equities

one

of

and dividends these non-rail sources paid to the
parent Santa Fe totalled $8 million last year, or $1 million more
than they paid in 1954. The increase was in the Chanslor-Western

Atchison, Topeka & Santa Fe

the To¬
Applica¬

at

in

347

By GERALD D. McKEEVER

Santa Fe

sources

balance

irom. non-rail properties

income

growing factor in the
these

underwriting group beaded

An

jointly by Morgan Stanley & Co.
and Model, Roland & Stone is of¬
fering for public sale tod^y (Nov.
8) $45,000,000 of Northspan Ura¬
nium Mines Ltd. 5 %%
general
mortgage bonds, series A, with
common share purchase warranter
The bonds, which are due July 1,
1963, are priced at 99% and ac¬
crued interest to yield approxi¬

of

The

Railroad Securities

Mines Bonds Offered

1, while the interest on the small
"plain" bonds is payable at 4% annually on Nov. 1.

.May and, Nov.

Northspan Uranium

Thi$ Week

industry will set its 13th consecutive annual
record in 1957, hitting the $62,500,000,000 mark, "Steel" magazine
predicted on Monday last. This year's expected total is $6^The construction

000,000,000.
•

The

"

national

metalworking weekly declared that new con¬
struction as well as maintenance and repair of older construction
will keep the industry on its record-breaking pace-for many years
to

*"

come.

*

-

.

-

It said next year's new construction will total

000,000,

a

5% boost

it will reach
or

31%

a

increase

Important
with

1956's

about $47,000,-

$44,50<LQO$,000. Within,

a
$58,300,000,000 annually in terms of constant
in

over

over

1956.

new

construction

•-

decade,
dollars
.

is

nonresidential

.

building,

industrial

expansion playing a major role.
By 1965, con¬
struction of new highways will be up 59% or $8,200,000,000 over
this year's $5,100,000,000. It is slated at $6,800,000,000 next year.
The publication stated housing for next year at $15,700.000,OW
will be under this year's figure, $15,800,000,000, but that the dip
i§ only temporary.
By 1965, a. total of $19,900,000,000 will &e
spent, a 26% increase in dollar volume.
a decade, the upsurging population, will make neces¬
jump of 96% in the number of sewers and water lm«s
being built.

Within

sary

a

The national

metalworking weekly declared that the

economy

Number 5584..

184

A

*

The Commercial and Financial Chronicle

yolUlflC

<1999)

^

to be in fine shape as long as the industry
record-breaking pace.
construction, including maintenance and repair,

Inc., finished at 293.58 on Oct. 30, as compared with 294.31 a week
earlier and 274.77 on the like date a year ago.
Grain markets strengthened the past week with most grains

whole appears

as

Stains

®a:

its

1946,

Tn
-

national product. By 1951, it was
alT!
l3%
Today, it is almost 15%. Significantly, the industry
0Vet rolling at an increasing rate right through the two postwar
^"tment years 1949 and 1954.
It said the biggest problem of the construction industry, curanc( in prospect, is the shortage of construction steel. Dend grows faster than the industry's capacity to supply it. Since
mnetitive materials are readily available, steel-pay lose ground
10% of the gross

+0

,n+pri

showing modest advances for the period.
Sparking the upturn in wheat

r

in

of

some

chain

Europe, buying of flour by
generally dry weather in the Southwest.

Modest

rains

eased

the

drought in

•i

construction material through

aS

of small

unavailability

executives shdw that press^a is building up
fr increase in steel prices. But U. S. Steel Corp^f l)ie largest steel
roducer and pace setter in steel pricing, discount^ the possibility
of a general hike now.
r
v
The American Iron and Steel Institute announced that the
rating rate of steel companies having 96.1% of the steelmaking
Janacity for the entire industry will be at an average of 100.6%
of capacity for the week beginning Nov. 5, 1956/ equivalent to
2476 000 tons of ingot and steel for castings as compared with
101.3% of capacity, and 2,493,000 tons (revised) u^veek ago.
The industry's ingot production rate for the weeks in 1956
is based on annual capacity of 128,363,090 tons Is 6f Jan. 1, 1956.
_

-

would

2,483,000 tons, A year ago the actual weekly production
placed at 2,404,000 tons or 99.6%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The
nprcentage figures for 1955 are based on annual capacity of 125,-

up

30.

S

345,207

1956, decreased 11,938 cars or 1.4% below the
Loadings for the

week

The

Oct. 27,

year

ago.

support

attracted by the further large volume of

cotton

movement

sold

for

export

under

bids

opened

into

the

CCC

loan

stock

continued

in

good

totalling 244,500
bales, compared with 257,000 a week earlier. Net loan entries for
the season through Oct. 19 were reported at 1,362,400 bales,
compared with entries of 1,106,000 bales in the corresponding
period last season.

.

1958^*totaled 816,803

decrease of 12,845 cars or 1.5% below the corresponding
but an increase of 80,570 cars, or "10.9% above the
corresponding week in 1954.
- /
;
v
•;
week

1955

Trade Volume Holds To High Level of

.

U. S. Automotive

While

Output Reaches Six Month High in
Latest Week

.

it

*

in

output for the latest week ended Nov. 2, 1956,
"Ward's Automotive Reports," established a six-

to

high record in the preceding week.
Last week the industry assembled an estimated 117,675 cars,

on

#

26,283

a

year

ago.

trucks .made
the previous

x.—

Canadian output last week was placed at 5,685 cars and
trucks. In the previous week Dominion plants built 5,207
and 1,958 trucks and for the
comparable 1955-week 5,722
and 667 trucks.
°

1,727

that of

in

Wholesale

A,

..

..

Food Price Index

,

,

-,

,

There

was

a

further

Registers Further Mild

slight easing in the Dun &

Bradstreet

It receded to $5.96 on
Tnk'+u ' ^rom $5.97 a week earlier, to the lowest level in seven
nths, and
exactly where it stood just prior to the start of the
from
Sfi°noan ^ar- The current index represents a drop of 1.0% fi
8

er

a year ago.
tn wholesale cost last week were

and

tin,,

were

flour, rye,

total of the price per pound
raw l°odstuffs.and meats in general use and its chief func-

index

represents the

at

Wholesale Commodity Price Index Turns Slightly
Easier
Following Modest Rise of Preceding Week
price level declined slightly last
g a mHd advance in the previous week. The dally
ale
commodity price index, compiled by Dun & Bradstreet,

wPPweiger?eral commodity

\vhnl

i




1

sales of

new

automobiles,

_

debentures, due April 30,
1972, of ACF-Wrigley Stores, Inc.,
at 100% and accrued interest. It
quickly oversubscribed.

was

The debentures
into

of retail

was

trade

in the period

ended

from 3% below to 1% higher than

total dollar volume

decline

in

the

were

buying

of

men's

moderately below

While the call for women's cloth coats

was

a

.

noticeable rise in buying activity at the major

The total dollar volume

voluntary sinking fund.
The net proceeds from the sale
of the debentures will be used in

for

disclosed 1 plans for
program

expansion

4%

ACF-Wrigley Stores, Inc., is
gaged

Retail trade volume in New

3% to 5% from the

similar J^eek last

Oct. 27, 1956, a gain of

1955.

Board's index, department

York City for the weekly period ended Oct. 27,

under those of | the like period last year. In
preceding week Oct. 20, 1956, a decrease of 6% was recorded.
the four weeks ending Oct. 27, 1956, an increase of 3% was

1956 to Oct. 27, 1956 the index
above that of the corresponding period in

registered.

For the period Jan. 1,

recorded,

rise of 4%

1955.

•

supermar¬

meats, poultry, fish, small house¬
hold
and
other
items
through
stores
generally located in the

Michigan, the
Ohio,

area,

Missouri

greater

Cleveland,

the greater St. Louis,
and the State of

area,

Oklahoma. The company current¬
operates
approximately
150

ly

supermarkets and ranks tenth in
sales volume among retail food
chains
in
the
United
States.

Through Abner Wolfe, Inc*.' b
wholly-owned subsidiary, it .en¬
gages

in; the wholesale grocery
business in the southeastern .part
of the State of
Michigan,

selling
dry groceries, frozen foods, drugs,
candies, gum, tobacco and various
small household items.
For the six months ended June

subsidiaries reported consolidated
sales of

$138,351,493 and consoli¬
$2,064,319.

dated net income of

May, Borg Admits
John M.

Manley on Oct. 5 was
partnership in May,
Borg & Company, 61 Broadway,
New York
City, members of the
American Stock Exchange.
admitted

to

Harris, Upham Adds
(Special to The Financial Chronicle)

BEVERLY HILLS,
Cal.—George
has
become connected
with Harris, Upham &
Schoene

986

Wilshire Boulevard.

With State Bond & Mtge.
(Special to The Financial

NEW

Chronicle)

ULM, Minn.—Gerald X.

Hix and Virgil K. Nelson are now
affiliated
with
State
Bond
&

Mortgage Co., 28 North Minnesota
Street.

(Special to The Financial Chronicle)

MINNEAPOLIS*
-i- John
i.K.Qgren andGodferyt J^Totushek
are
now
connected
with
King
Merritt &

Co., Inc.

With Lee Higginson
(Special to The Financial-Chronicle)

BOSTON,

Mass. —Jeffrey

R.

Power has been added to the staff
of Lee

Federal

Higginson Corporation,-50
Street.

Joins

level of the like period in 1955, due to warm

1956, decreased 2%

a

cash-and-carry

en¬

self-

York City the past week declined

According to the Federal Reserve

For

retail

Two With King Merritt

trade observers report.

and rainy weather,

the

operating

kets dealing in
groceries, fresh
fruits and vegetables, bakery and
dairy
products,
frozen
foods,

In
decrease of 3% was reported.

For the period Jan. 1, 1956 to

store sales in New

in

service

above those of the like period last year.

registered above that of

was

including

the opening of 36 stores in 1957.

preceding week, Oct. 20, 1956, a
the four weeks ended Oct. 27, 1956, an increase of 1% was

recorded,

repayment of butshort-term bank loans.

an

of wholesale trade expanded appre¬

h-year.-|vDepartment store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Oct. 27,
the

the

standing

The company

apparel.

ciably, and was moderately above that pf .the

1956, increased 2%

in¬

Numerous special shows stimulated

interest in-furniture, housewares, and

For

and

from 104 %% to par, plus accrued
interest, and they will also-have
the benefit of redemption for the
fixed sinking fund and for the

slightly, volume, in better dresses was high and

Except for gains in millinery and jewelry, interest in

There

to

cluding April 30, 1972, at conver¬
sion prices ranging from
$17 to
$23 pef share.
The debentures will be redeem¬
able at .optional prices receding

Co.,

considerable

sales of suits and furnishings

fell

convertible

are

shares

common

30, 1956, the corporation and its

decreased last week and was noticeably below

a

Nov. 2 $4,000,000 of 4%%
subordinated sinking

fund

as

introduced.

wholesale centers last week.

sum

Sh°W the Seneral trend of f00d Prices at the wholesale

level1S

was

suits

steady.

wheat, corn, hams,

larri' C+°C0a' eggs and lambs. On the down side
a» cottonseed
oil, potatoes, steers and hogs.
nf oi

in

,

hoiesale food
price index the past week.

u?n the like date

rise

fashion accessories declined.

Decline in Latest Week
■

were

those of the previous week.

of 1939.

involving liabilities of $5,000 or more rose to 231
from 211 a week
ago and 207 in the comparable week of 1955,
there was a dip in small casualties with liabilities under
•pkOOO, to 40 from 56 last week, but they continued above the 30
of this
size
occurring a year ago. Ten of the failing businesses
had liabilities
in excess of $100,000 as against-26 ih the preceding
,

Moderate declines in

year ago.

topcoats;

Failures

•

a

There

Although the toll was considerably heavier
the 237 last
year and the 204 in 1954, it remained 15% below

••

high level last week,
»•

Despite numerous sales promotions, the
of men's apparel

street, Inc., reports.

week.

ago.

and apparel were offset by gains

year ago,

cars

Commercial and industrial' failures edged" jig to 271 in the
week ended Nov. 1 from 267 in the
preceding week, Dun & Brad-

the prewar
level of 318 in the similar week

1957. models

Wednesday of last week

Past Week

than

continued

a

on

convertible

ing fell somewhat, sales of curtains and draperies advanced ap¬
preciably.

cars

1

Business Failures Make Further Slight-Advances

year

Preceding Week

according to estimates by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the comparable 1955 levels by the
following percentages: New England —4 to 0; East and Middle
West—5 to —1; South—1 to +3; Northwest —2 to +2; Southwest
and Pacific Coast 0 to +4%.
Major appliance dealers reported a moderate decline in the
call for refrigerators, deep-freeze units and automatic laundry
equipment; volume in television sets, radios and lamps was un¬
changed. A slight-rise in the buying of upholstered and occasional
furniture occurred. While interest in linens, blankets and carpet¬
a

Last week's car output rose above* that of the previous week
by 13,406 cars,, while truck output declined by 2r778 vehicles dur¬
ing the week. In the corresponding week last-year 167,278 cars
and 26,283 trucks were assembled.

and

was

The total dollar volume

in the previous week. The past
production, total of cars and trucks amounted to 136,595
units, or an increase of 10,628 units ahead of the preceding week's
output, states "Ward's."
,
compared with 104,269 (revised)

a

Appliances

a

furniture, housewares and food.

more

week's

Last week the agency reported there were 18,920
in the United States. This
compared with 21,698 in

sustained at

was

slightly -below that—of-

There

months

week

trade

the buying of major

Automotive

according

was

retail

8c Co., as manager of an
investment banking syndicate of¬
fered

southeastern part of the State of

was

volume with entries for the week ended Oct. 19

cars, a

,

a

Oct. 16, and the prospect of a sharp increase in exports this season.

^

ended Oct. 27,

compared with 238,329

Ware¬

bags from

change for the week.
government-«owned

preceding week, the

Association of American Railroads reports.

and

further drop of 339,144

a

sale fresh pork markets and a seasonal increase in receipts.
Cotton prices moved in a narrow range and showed little net

Dipped 1.4%

the week "ended

showed

week earlier,

a

Some

freight for

mark¬

a

Lard prices were substantially lower for the week. In the sharpest
decline of the year, live hog prices fell about $1.50 per cwt.,
to the lowest in six months. The drop reflected declining whole¬

in 1954.

of revenue

cocoa

Allen

part

again.

years.

house stocks of

of electric energy distributed by.tlje electric light
industry for the week ended Saturday-, Nov. 3, 1956,
was estimated at 11,487,000,000 kwh., an increase, above the week
ended Oct. 27, 1956, according to the Edison Electric Institute.
The past week's'output rose 96,000,000 kwh, ^bove that of the
previous week; it increased 634,000,000 kwh. of-3.8% above the
comparable 1955 week and 2,130,000 kwh. ove^he like week

r

devaluate Cropped up

Cocoa prices were somewhat firmer toward the close.

The amount

Loadings

many

of 10 cents by leading refiners to $8.95 per cwt., effective Oct.
This represents the highest price for refined granulated sugar

in 33

Continues Upward Trend jnXatest Week I

Loadings in Week Ended Oct. 27,
Below Preceding Week

investment

Raw sugar prices continued to climb and resulted in

and power

Car

some

large and intermediate bakers
varying periods extending from 60 to 120
days.
Business in other flours was largely routine except for
scattered replacement buying
among trade in early need.
Coffee
prices which have held firm on the threat of a dock strike de¬
veloped-some easiness toward the close as rumors that Brazil

was

Electric Output

also

covered their need for

duction

of Jan. 1, 1955.

was

growth

highest quality in
many years. Trading in grain and soybean futures on the Chicago
Board of Trade
expanded,.considerably last week. Daily average
sales* totalling 55,900,000 bushels, compared with about 49,000,0ud
bushels the previous week and the same week a
year ago.
Bookings of hard Winter wheat bakery flours expanded con¬

siderably last week when

like week a month ago the rate was.400.9% and pro¬

828,310 tons as

There

but

areas,

on indications that exports will run very
high
this crop season.
Corn prices were irregular but firmed
up in the latter part
of the week with improved demand.
A large percentage of the
corn
crop has been put in storage.
Weather conditions have
been ideal and the crop is said to be of the

steel company

For the

grains is still retarded.

some

buying in wheat

aTlie metalworking authority pointed out t^aC statements of
me

Offer Oversubscribed

the unsettled conditions

the satellite countries in

bakers and

ACF-Wrigley Stores

.

were

33

Reynolds Staff

BOSTON, Mass.—Charles W.
Love joy, Jr., has joined the staff
of

Reynolds

Street.

Lee

He

& Co., 19 Congress
was
formerly with

Higginson Corporation.

Earl H. Hooper
Earl H. Hooper, associated

Gearhart & Otis, Inc., has

with
passed

away.

>

The Commercial and Financial

its

(2000)

Chronicler I. Thursday; November 8,

wm -

•-•-r-f

in
'American Federal

Box

Price—$55 per unit. Proceeds—To purchase
paper and to extend the company's operations

■share.
*car

3Jxe field of new car financing.

used
mto

American Heritage life Insurance. Co. (11/19)
Oct 26 filed 1,139,375 shares of common stock (par $1),
of which 575,000 shares are to be offered to the public;
435,000 shares to agents mid 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; ital. offiee — Jacksonville, Fla. Underwriter — Pierce,
Carrisori, Wulburn, Inc., of Jacksonville, Fla.
•

units,

•

Price

Bentonite Corp.

Offering—Postponed

1

(255,000 shares) of National sto
Dealer-Managers—Willia
Blair & Co.; The First Boston Corp.; and Lazard Frer

ie Brookridge Development Corp.
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.

& Co.

April 30 filed 2,000,000 shares of common stock (par $1).
*?rice—$1.50 per share. Proceeds^—For working capital
and general corporate purposes. Underwriter — To be
•aamed by amendment.

Investment Co.,

Atlas Credit Corp.,

Philadelphia, Pa.
$600,000 of 6% convertible subordinated

-debentures due June 15, 1968. Price—100% of principal
amount. Proceeds—To retire indebtedness of the com-"

.

and Glore,

-

capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
Weill, Blauner & Co., Inc. of New York.

^Canada General Fund
Nov.

filed

1

shares of

(by

common

an

(1954)

1963 and 24,000 shares of class B common stoc
(par $1) to be offered in units of $50 of debentures a
share of stock;
Price—To be supplied by amen
ment (the proposed maximum offering price is $65 p
unit).
Proceeds — To. reduce outstanding short-ter
bank, loans ahd to repay subordinated note for $50
000. Underwriter
Merrill Lynch, Pierce, Fenner
Beane, New York.
one

—

Ltd.

Da Has Power &

amendment) 1,500,000 additional
(par $1). Price — A$ market.

■July 13 (letter of notification) 600,000 shares of common
stock (par 10 cents) to be offered for subscription by
of 0.46875 of

Price—10 cents per share.

a

•

Centers Corp., Philadelphia,

new

• Dallas

—
About $4,100,000 will be used to acquire
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real

estate

ton, D. C. Distributor—Automation Development Secucities Co., Inc., Washington, D„ C.

activities,

Underwriter

and

for

general

corporate

Automation Industries Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
J?rice-r-$5.25 per share. Proceeds—For "working capital

,

Treasurer.

purposes;

Blair & Co. Incorporated,

Lehman Brothers.

.

of

one new share for each, two shares held
as of record
Oct. 15, 1956; rights to expire on Dec. 1.
Price—$11 per

;

Boston

Philadelphia

.

Pittsburgh

San Francisco

Chicago

Private Wtres to all offices




,

stock.

„

Nov. 5 filed 200,000 shares of common stock (par $1)
be offered for sale to certain officers and employees
the company and its subsidiariesmndgr .the,

.Restricted Stock Option Plan and
chase Plan.
• •

.

Devall Land & Marine

■

Construction Co.,

Inc.

May i6

t

mon

16

Plywood, inc., Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share). Proceeds—For-acquisition of

-company

Employee Stock Pu

.

Boulevard, Farmingdale, L. I., N. Y. Underwriter

Chinook

of

★ Detroit Steel Corp.

Helicopter Airways, Inc.
(letter of notification) 23,050 shares of comrrion
stock (par $1) to be offered to stockholders* of record
Oct. 26, 1956 on the basis of one share for-each five
shares held (with an oversubscription privilege); right3
to expire on Nov. 9, 1956. Price—$11.25 per share.-Pro¬
ceeds—To purchase lease rights to a hangar and for im¬
provements and working capital. Office—-45240 West 63rd
St., Chicago, III Underwriter—None.
...

Cleveland

offered in units of

one $500 debenture and
Price—$525 per unit:- - Proceeds—F
"working capital. Underwriter — Whitney .* & Co., In
Washington, D. C.

Chicago

New York

Bids—Expected to be received up

Dec. 3.

*

(in denominations of $100 each). Proceeds — To pay
payable, reduce accounts payable and to pay
other current liabilities; also for working capital. Office

:<r.

be

shares

notes

Oct,

on

Dal ton Finance, Inc., Mt. Rainier, Md.
Sept. 28 (letter of notification) .$250,000 of 6% 10-ye
subordinated debentures (with warrants attached) an
to

Century Controls Corp.

—None,

.

25,000 shares of class A common stock (par 50 cen
•

Oct. 4 (letter of notification) $150,000 of 6% subordinate
convertible debentures. Price—90% of principal amount

—Allen

(EST)

noon

by it at $1.10 per share. Offering—Not
expected until the early part ?of January.
-

Century Controls Corp., Farmnigdale, ij. 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. Offering —Ex¬
pected in November.

® 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

v

Corp.; Salomon Bros. & Hutzler; Ki
der, Peribcdy & Co. and Merrill Lynch, pierce, Fenn
& Beane (jointly); Eastman Dillon, Union Securities
Co.; Kuhn, Loeb & Co.; Equitable Securities Corp.; Bla
& Co. Incorporated and Baxter, Williams & Co. (jointly

,

Underwriter —. Jfpriei
Marry Kahn, Jr., of Washington, D. C., is President a$d
purposes.

(12/3)

Underwriter—To be determined by compet
five bidding, probable bidders: Halsey, Stuart & Co. Inc

selected

sons

Power & Light Co.

The First Boston

Philadelphia
and New York. Latter has agreed to purchase an addi¬
tional 300,000 common shares and Teoffer them to per¬
—

stockholders o
Proceeds—F
— 15

program.

seven

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—Washing¬

and

Nov. ,7 filed $10,000,000 of first mortgage bonds due 198
Proceeds — To repay bank, loans and. for constructio

Proceeds

York, and Crerie & Co., Houston, Tex.

construction

working capital. Office
Commerce St.," Dallas, Tex„ Underwriter—None.

Pa.

dtie

For general corporate purposes;
Underwriters—Berwyn
T. Moore &. Co., Louisville, Ky.; Gearhart & Otis, Inc.,

431 shares of commo

stock (no par) to be offered to minority
a l-for-16 basis.
Price—$185 per share.

July 30 filed $8,000,000 of 5%% sinking fund debenture?
Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,000 of
debentures.
Price— To be supplied by amendment.

share for

.Proceeds—

Light Co.
(letter of notification)

Oct. 23

stock

Proceeds—For investment.

Audubon Park Raceway, Inc.

Forgan & Co., Chicago, Ill/and New York

Nov. 1,

Shore

writer—To be named later.

and

$1

Credit Finance Service, Inc., Wilmington, Del.
Oct. 30 filed $1,200,000 of subordinate debentures d

—

to its affiliates for money borrowed for working

•..v

.

Coscien

Standard Oil Co. of,"Texas and AndersqnTPrichard 0
Corp., who are the sellirig stockholders. Underwriter
Dean Witter & Co., San Francisco, Calif., and New Yor

Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, arid 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds
For equipment, exploration, drilling:, working
capital and other general corporate purposes. Under¬
Burma

expire on Nov. 15.

Petroleum Corp. (11/14)
Oct. 26 filed 352,000 shares of capital stock (par
Price —To be supplied by amendment.
Proceeds
•

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
7%% of the offering price. Proceeds—For investment.
Business—A diversified, open-end" investment company
of the management type. Underwriter—Brown Manage¬
ment Co., 833 Alaska St., Honolulu, Hawaii.

Co., Inc.,

of at least 51%

arid will

Oct. 29 (letter

both of New York.

of Continental stock, for one share of N
The offer is conditional upon the accep

shares

tional stock.
ance

stock. Price—At par

Brown

•

.Continental Casualty Co.,. Chicago,. 111.

114

obligations, purchase equipment, etc. Office—1308
Patt Street, Anaheim, Calif.
Underwriter—J. D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.

(11/21)

>

Sept. 28 filed 625,000 shares of capital stock (par $
being offered jn_ exchange for. outstanding capital sto
of National Fire Insurance Co. of Hartford at rate

No*

Atlantic Oil Corp., Tulsa, Okla.

.

■

...

pay

writers—The First Boston Corp., and Blyth &

:

*

'Bridgford Packing Co;, Anaheim, Calif.

200,000

other corporate

.

Aug. 13 (letter of notification) 222,222 shares of common stock (par $1).
Price—$1.35 per share.
Proceeds—To

shares of cumulative convertible
Price — To be supplied by
amendment. Proceeds — To reduce bank loans. Under¬

and

/Consolidated Oil Management

Aug. 16 (letter of notification) $250,000 of 10-year 5V2
collateral trust-bonds due Sept. 9, 1966.
Office—73
Central Ave., St, Petersburg, Fla. Predecessor—Lyn
Oil Co.
Underwriter—Security & Bond Co., Lexingto
Kentucky.
''
)

.

.

ing expenses.
Office—290 N. University Ave., Provo,
Underwriter—Thomas Loop Co., New Orleans, La.

preferred stock (par $50).

:

stock (par $1).
Proceeds — To

/

.

.

;

^25 filed 180,000 shares of 5 y2%' preferred stoc
(cumulative to extent earned before patronage refund
shares of 4% second preferred stock (cumul
; tive to extent earned before patronage refunds) to.
sold directly to members and others by the Association
employees. Price—At par ($25' pet share). ProceedFor general corporate purposes.
Underwriter—None.

Utah.

He Arcoi Oil Co.
Oct- 29 (letter of notification) 150,000 shares of common
.stock (par $1). Price—$2 per share. Proceeds—For oil
.{trilling expenses. Office—Denver Club Bldg., Denver,
Cq)o. Underwriter—None.

New

..

Mo.

and 20,000

June 29 (letter of notification) 150,000 shares of common
stock (par$l). Price—$2 per share. Proceeds-^For min¬

Anheuser-Busch, Inc., St. Louis, Mo.

at rate

of America

Offerr

.

■

„

.

Aug. 30 filed 328,723 shares of common stock (par $4).
ftice—To be supplied by ameridment Proceeds — To
Estate of Edmee B. Greenough, deceased. Underwriter—

cadi share held.

290,000 shares of common
To be supplied by amendment.

—

withdrawn.

Cooperative,Association,

Kansas City,

selling stockholders. Underwriter — Lehman ; Brothers,
New York. Offering—Expected today (Nov. 8).

■practically all forms of electric appliances and equipUnderwriter—Kidder, Peabody & Co., New York.

commonstockholders

-

Statement

Oct.

Underwriter—Berry &

filed

4

Inc.

will be made to bona fide residents of Colorado only.

Beneficial Standard Life Insurance Co.

Oct.

«nent

jpany

River, N, J.

Co., Newark, N. J.

Springs," Colo.

orado

Consumers

chinery; production equipment and materials; inven¬
tory; and working capital.
Business — Manufactures
"Unit-Inch" electric con vector heaters. Office—7 West

For new construction. Unde

—

•

;•

Colorado Springs Aquatic Center,

•

a

Water Street, Toms

.

Aug. 23 filed 500,000 .shares of common stock (par'
cents). Price—$1 pecjshare. Proceeds—For swimmi
pool and related activities, bowling alley, site preparati
including parking, and land cost ($95,000). Underwrite
—Arthur L. Weir & Co, and Copley •& Co., both of Co

Proceeds—To

corporate purposes. Business—Designs and manufactures
solderless electric wire terminals and manufacturing of

-June "11 "filed

writer—None.

each; and of series "C" units, $100 each.
acquire or lease plant; for dies, and ma¬

$500

Proceeds

share).

per

,

$500 "A" bond and 50 shares of stock);
(each consisting of a $500 "B" bond and 50
shares of stock); and 1,975 "C" units (each consisting *
of 100 shares of stock), Price; Of series "A" and "B"

_

*

.

100 "B" units

^AMP, Inc., Harrisburg, Pa, (11/14)
;
Oct 24 filed 328,700 shares of common stock- (par $1),
-bearing an endorsement representing a beneficial inter¬
est iii 3,287 shares of common stock, (par $1) of Pamcor,
Inc., Sari Juan, Puerto Rico, an affiliate of AMP, Inc. Of
the total, 298,700 shares are to b© offered to public (148,200 shares for company's account and 150,500 shares for
•account of selling stockholders) and. 30,000 shares are-to
-be offered to employees (for company's account). Price
-—To be supplied by amendment Proceeds—For general

31 filed

>

'

Chisago City Telephone Co., Chisago, Minn.
Sept. 6 (letter of notification) 1,000 shares of commo
stock to be offered to stockholders. Price—At par ($

Underwriter—

,

„

consisting.of

'

Oct.

Inc. '

Beckjord Manufacturing Corp.
Oct. 12 (letter of notification) $50,000 of series A 6%
debenture bonds, $50,000
of series B 6% debenture,
bonds and 207,500 shares of common stock:(par 10 cents)r
to be offered.in units as follows: 100 "A" units (each

*

Arizona Public Service Co.

"

Lafayette St., Baton Rouge, La,

—131

None.

Hi g gin son Corp., New York.
indefinitely.
-

a

Rouge: Water Works Co.

Baton

Underwriter—None. J. J;

41.ee

plant site, construction of a mill building, purcha
and installation- of machinery and equipment, and'
operating capital. Underwriter — Industry Developer

capital. Address—P. O.
Underwriter—None.

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 systems Office

Uain is President.

•

Proceeds—For working

515, Albuquerque, N. Mex.

* INDICATES ADDITIONS
SIHCE PfWEVICHIS ISSUE
• ITEMS REVISED

r.'

share.

Finance-Corp., KIHeen, Texas

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

*

-•

193

(letter of notification) 150,000 shares of co
stock (par $1). Price—$2 per share. Proceeds—*

notes, to purchase and equip three bos
Office—1111: No.. First Ave., L
Underwriter—Vickers Brothers, Housto
Texas. Statement effective.

payments of
and

working, capital

.Charles. La.

Diversified Oil & Mining Corp.. Denver, Colo.
Aug. 29 filed 2,500,000 shares-of 6% convertible no
_

"

cumulative

..

warrants
-

to

preferred ■stock, first- series .(par- $1),.purchase 500,000 shares of common sto
,

(par 10 cents) to be offered for subscription
common stockholders in-ymHs of 25

initially

fjifefciredshares^

a

,wari;arit to ,purchase five common shares.

Price—$2o.

CS

one

at

$2

500

iri2

$1,

will entitle the holder to purshare at any time prior to Dec. 31,
per shareU-Proceeds—To repay mortgages, to
of five-year 6% sinking fund debentures, and

(each warrant

nit
-

p

Number 5584 ... The Commercial and Financial Chronicle

184

Volume

common

acquisitions and

fn'rther

working

capital.

Under-

for

Manufacturing Corp.
0
nvppprl
79 Aft
15 filed not to exceed 72,000 shares of cumulative
(jCv« ^
*rf Arvlr
/nn
trnlitA
vertible preferred stock (no par value).
Price—To
conv
c
nodse
PO P

*

—>-.4-

i

_

(2001)

★ Federated Mortgage Corp. of Delaware

•

Oct. 25 (letter of
notification) $299,000 of 8% convertible
bonds due,df demanded in five

from date, of issue,
Price—At par (in de¬

years

„

net to the company of approximately $2,000,p|*Q(^00Cls—For expansion and working capital. Ofa

P

.

H'
r-

Tinrlarnrriior

T^v/-]

i

.

Pnn +

.ol

r)«

ut:.

Underwriter — Central Republic

p__Mishawaka, Ind.

Offering—Expected today (Nov. 8).
Corp., Fort Collins, Colo.

Chicago, 111.

Inc.,

Douglas

filed 4,000,000 shares of-common stock (par one
nt) Price — 10 cents Per share. Proceeds — For ex¬
piration development and acquisition of properties and
Sr working capital. Underwriter—Columbia Securities
27

t

Co.,

Colo.

Denver,

Chemical Co., Midland, Mich.
150,000 shares of common stock (par $5)
to he offered for subscription by employees of the com¬
pany and certain subsidiaries and associated companies.
Subscriptions will be received by the company Oct. 1
throughf Oct. 26. Price—$60 per share. Proceeds—For
expansion, etc. Underwriter—None.
Eastern-Northern Explorations, Ltd.
June 4 (regulation "D") 500,000 shares of common stock
(par $1). Price—60 cents per share. Proceeds—For gen¬
eral corporate purposes.
Office—Toronto, Canada. Un¬
derwriter—Foster-Mann, Inc., New York.
27 filed

New Orleans, La.

Inc.,

Eternalite,

(11/15)

filed 200,000 shares of class A common stock

Sept. 24

50 cents). Price—$4.50 per share. Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Vickers Brothers, New York.
(par

(letter of notification)

Oct, 3

25,000 shares of

common

being offered for subscription by stock¬
Oct.

holders of record

10,

1956

at the

of

rate

one

shares held; rights expire

share for each seven

on

new

Nov.

15,1956. Price—$10 per share. Proceeds—For working
capital. Office — 123 Erie Boulevard East, Syracuse,
Underwriter—None.

N. Y.

Federal
Oct. 1

Manufacturing & Engineering Corp.

tures

be

to

about

sold

75%

to

•

to

retire

the

share.

latter

Genco

ate
to

198,900 shares of class B
for subscription by stock¬
holders on the basis of 85 shares for every 100 shares
of class A stock held; rights to expire 30 days after date
of offering.
Price—At par ($1 per share). Proceeds—
For general corporate purposes.
Office—1055 Stewart
Ave,, Garden City, N. Y. Underwriter—None.

and Tower Construction

common

Underwriter—None.

purposes.

filed

Colorado in

2,950

shares

of

units of

class

B

50

shares of

stock

and

class A

$7,"COO

one

debenture.

Price—$10,000 per unit. Proceeds—For pur¬
property, remodeling of present main building
construction and working capital.
Business—

chase of
for

new

Operates year-round resort

hotel.

Underwriter—Nomfih

Great Northern Life Insurance Co.

stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
and working captal.
Underwriter
None named.
Offering to be made through selected dealers.

Sept. 20 (letter of notification) 44,000 shares of common
stock (par $1).
Price—$6.75 per share. Proceeds—For
working capital and unassigned surplus. Office —119

—

West

Rudisill

Blvd., Ft. Wayne,' Ind.
Underwriter
Investment, Inc., Ft. Wayne, Ind.

Northwestern

Co., Akron, Ohio

—

it Green Mountain

Enterprises, Inc., Putney, Vi.
(letter of notification) 5,000 shares of non-cumu¬
preferred stock (par $10) and 15,000 shares of:
common
stock (par $1) to be offered in units of one
preferred share and three common shares. Price—$14.50

July 27 filed 26,068 shares of $5 cumulative preference
(par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products
Corp.
The exchange offer will be subject to acceptance by
owners of all of the outstanding $1,060,000 notes and
by
not less than 39,400 of the 68,837 shares of Carlon stnrk
Underwriter
None.
Merger discussions terminated in
October, 1956, owing to inability to agree on terms for
exchange of securities.

Nov. 1

stock

lative

unit.

per

ment of

Proceeds

—

For

incident to develop¬

expenses

recreation park known as Santa's Land. Under¬

a

writer—None.

Growers Container Corp., Salinas. Calif.
May 28 filed 600,000 shares of common stock (par $>1>
to be offered primarily to individuals and firms %ho
are
engaged in or closely allied to the growing midshipping industry. Price—$3 per share. Proceeds—Fearworking capital, capital expenditures and other corpo¬
rate purposes. Underwriter—None.

(N. J.), New York

Jan.

18 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development
Underwriter—None. Maurice Schack, Middletown, N. Y„

is President.

[This is in addition
22C$

(par

stock,

; 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

Corp.

per

the 40,500 units also filed with the SEC on Oct.

of Texas and

—

Uranium

Price—$1

Lodge, Inc., Durango, Colo.
9,000 shares of class A voting common
$1), 295,000 shares of class B non-vOthag;*
common stock (par $1), and $700,000 of 4% debentures*
due Dec. 31, 1975, to lDe offered for sale in the States

(par $1). Price—$5 per share. Proceeds—For oil
development expenses. Office — 1907 Broadway Ave.,
Scottsbluff, Neb. Underwriter
Edward C. Colling
Scottsbluff, Neb.

General

Co.

Gold Mountain

stock

General Tire & Rubber

(11/19)

Proceeds—For working capital and other cofrpoi-

stock

Co., Inc.
Aug. 24 (letter of notification) 55,000 shares of

Properties, Inc.

filed

Aug. 23

Oil

sion

23

corporation

subordinated

a

promissory note payable
firm.
Office—New Orleans, La.
Under¬
writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas;
and Rusl & Co.,
Inc., San Antonio, Texas.
to

of stock; of which.

250,000 shares of common stock (par 10
cents) of which 100,000 shares are to be offered to the
public, 40,000 shares are to be offered to certain of the
company's employees and 110,000 shares to associates of

Industries, Inc., which owns
Freiberg's outstanding common stock.

of

Giant Food

Oct.

Texas

Price—To be supplied by amendment. Proceeds—From
sale of units to retire short-term
loans and for working
capital, etc., and from sale of debentures to Texas Indus¬

offered

be

due

stock

common

are

Proceeds

—

(letter of notification)

capital stock to

450,000 shares of

which

•

Excelsior Insurance Co. of New York

stock (par $6)

and

(par 10 cents),
$1,500,000 of debentures and all of the stock
are to be offered
publicly in units of $500 of debentures
and 150 shares of
stock; the remaining $500,000 of deben¬
of

tries

DoW

Aug

1971

22 shares

and

to be offered publicly and

15,500 units
exchange for properties. Price—$100
—
To acquire shopping center sites
and for working capital and other
general corporate
purposes.
Office — Washington, D. C. Underwriters —
Auchincloss, Parker & Redpath, Washington, D. C., audi
Kidder, Peabody & Co., New York, N. Y.
unit.

per

.Oct.

(11/19)

to be issued in

are

Freiberg Mahogany Co.
11 filed
$2,000,000 of subordinated debentures

\

v\nt*

.

..

of debentures

25,000 units

Underwriter—None.

*

-

Inc.

(par'70 cehts) to Be offered In units* off $100 principal
amount

Ave., Port

Chester, N. Y.

Properties,

Oct. 23 filed $4,050,000 of 5^% sinking fund debentures
due Dec. 1, 1971, and 891,000 shares of common stock

in 10 years without demanad.
nominations of $100, $500 and
$1,000 each). Proceeds—
For working capital. Office—225 Westchester
or

Giant Food

37

Statement effective March 11.

it Guardian Chemical Corp.
Oct. 29 (letter of notification) $250,000 of 6%

convertible
1, 1966. Price—At par (indenomieach). Proceeds—For working capital.
Office—38-15 30th St., Long Island City 1, N. Y. Under¬
debentures due Dec.

NEW
November 8

ISSUE

CALENDAR
November

(Thursday)

Chicago, Burlington & Quincy RR. Equip. Tr. Ctfs.
(Bids

CST)

noon

American

$3,600,000

CST)

noon

November

12

lOifenng to stockholders—to

(Offering

to

Co.)

Blosser

&

Inc.)

Co.,

13

(S.

Preferred

Van Horn Butane
(Schwatacher

&

Inc

RR

Dick

Inc.

Equip.

Trust

Ctfs.

(Cruttenden

Co.)

Barth

J.

11:JO

&

Co.)

Corp.)

Peabody

and

First Eoston Corp.

(The

Power

Dallas

11

298,700

Co.)

shares

a.m.

Porgan

&

Gas

EST)

&

Co.)

352,030

"l--

Oct.

(Tuesday)

Chesapeake

(Bids

11

a.m.

Debentures

•

&

(Thursday)
New

Ohio Ry.___

(Kidder,

Peabody

&

Co.)

ernalite, Inc..,
■

_

an

Central
(Bids

'Vickers

•

$7,650,000

Brothers)

(White,

Weld

Sir Barney
°il Corp..
Co.
u,

&

;

&

Texas Eastern

•

Horton Aircraft

Read

to

Florida

(Bids

hltice,

11:30

(^wal
ino

a.m.

EST)

.

..

-

(Bids

to

$20,000,000

(Friday)

Ltd

be

8,

1957

Corp., Las Vegas, Nev.

100,000 shares of common ^tock (no par).
supplied by amendment (ihaximum price

$25 per share).

Proceeds—To William E. Horton,
who is thq selling stockholder.

Imperial Oil, Ltd., Toronto, Canada
18 filed 1,504,271 shares of no par

to

be

invited I

»

,

,,t,(Bids

to

be

invited)

•

Debentures
$35.000,0u0

about $20,000,000

value

^

capital

20

held;

shares

rights to

expire

on

Dec. 4,

1956.

Co.-(New Jersey), which owns 69.64% of

Imperial stock is said to have indicated
its portion of the offering.
by amendment (expected to be

that it intends to subscribe to
Price

—

To be supplied

about $55 per

(Tuesday)
;
Ti^ht Co.———i_i-L—:Bonds

Louisiana Pnwpr

L-—-_-lCommon

(11/16)

stock, to be offered for subscription by stockholders of
record Nov. 13, 1956 on the basis of one new share for

the outstanding

(Tuesday)

January 15, 1957

$1,000,000 sha es

"-4 £04,-271%

filed

Standard Oil

..

received) $9,000,003

England Tel. & Tel. Co
(Bids

to.-stoekiioldtrE—writing v




New

Common

underwritten)

•

each

——Equip. Trust Ctfs.

Illinois Central RR

Pcntic-r

---Bonds

Co

*

<<fe-^anhattan Bank. ILl
Stockholders—to-be

be

share).

Underwriter—None.
:

$40,000,000

(Tuesday)

11

Power & Light

1' & Beane) $170,593,900

to

Inc.)

*

..Debentures

Lynch,

18

per

Oct.

January

.

Equ ip. Trust Ctfs.

$8,055,003

(Monday)

10

& Co.

December

$8,000,000

Merrill

Oct.

Price—To be

Transmission Corp——Debentures

(Dillon,

Debentures
and

November 16
■«

-----

invited)

be

Proceeds—To pay
'Office—107 VaJley
Underwriter—None.
($5

par

short-term bank loans.

President of the company,

$900,000

Co.)

Price—At

St., Emporia, Va.

$20,003,030

(Thursday)

RR... L

to

December

____CIass A Common

Jacinto Petroleum Corp.-.

1

York

Underwriter—None.

subscription by stockholders of record Nov. 14, 1956
ratio of one new share for each seven shareg

held.

Bonds

6

December

Greeley, Colo.

the

in

■-.<

"(Bids

.

17, 1956. Price—$40 per share. Proceeds—For-ad¬
plant facilities
and improvements.
Office—

Ninth St.,

for

..Debentures

EST)

on

Telephone & Telegraph Co. of Virginia
Oct. 25 filed 46,000 shares of capital stock to be offered

$30,000,000

Long Island Lighting Co

Equip. Trust Ctfs.
to be invited)... $7,800,000
pctricity Commission of New South Wales Bonds
.

1956,

outstanding

$3,000,000

of

(par $25)

Home

*

November 15

Light & Power Co.

ditional
810

(Wednesday)

5

McCourtney-Breckenridge

240,000

(letter

24,

Nov.

Bonds

to

December

Bonds

EST)

8

stock

stockholders—to be underwritten
by Dillon, Read & Co. Inc.) $28,285,600

'

—

notification) 6,695 shares of common
being offered to stockholders of record.
the basis of one share for each eight
shares held on Oct. 24, 1956, and also to employees at a
rate not to exceed 10% of annual pay; warrants expire
Oct.

$10,030,000

invited)

be

to

To

of common stock (par $1).
Proceeds—To certain selling stock¬
Underwriter—Van Alstyne, Noel & Co., New

Home

and

Lincoln;

(Monday)

Cash Register Co

(Offering

Co

a.m.

(Bids

I^ational

$50,000,000

203,003 shares

of

Michigan Bell Telephone Co.——

shares

Bonds

—

Stores, Inc.
shares

filed

2

holders.

$4,648,320

Co
4

Price

held.

York; and Johnston, Lemon & Co., Washington, D. C.

Preferred

EST)

neon

shares

Class A

and Blyth & Co., Inc.) $10,000,003

December

.Common ;

(Blyth & Co.v Inc )

H

,

Co

Peichhold Chemicals, Inc

(Bids

(Bids

Common

Glore,

Sierra Pacific Power

Hartfield

(Wednesday)

Light

&

two

Price—$9 per share.

Co

Service

Public

Arizona

(Wednesday)

&

Public Service Electric
(Bids

cost

..Common

Co

Co.

each

Proceeds—To retire bank loans; pay installa¬
and for construction of other plants.
Office—

Waterloo, 111. Underwriter
& Co., St. Louis, Mo.

$10,000,000

The First Trust

Co.;

&

Common

Co.

tion

and

Bonds
EST)

a.m

November 21

$1,103,030

Inc

Witter &

share.

$1,250,030

Transportation

$300,003

Cosden Petroleum
Corp
'wan

Co.;

(Tuesday)

December 3

(Kidder,

&

for

share

new

stockholders, $102 per share; to residents of Illinois, $106

$2,400,000

Light Co

Wachob-Bender

.-Debentures

Preferred

and

&

Brothers

$7,695,003

Co.)

November 14

AMP,

about

_______

Fuller &

D,

(Bids

Service

Co.,

Cbwen

Co.;

November 20

(Tuesday)

Southern Gas Co
C.

one

(par $100)

per

$975,000

$23,COO,..0 J

EST)

noon

(Lewis

Co.)

Oct.

Nashville

Pennsylvania

&

McDowell)

&

Cuban Oil,

United

Watson
(Bids

&

.Preferred

Allen

Luht;

&

Straus,

Texas Power

&

Dempsey-Tegeler

(letter of notification) 1,850 shares of common
to be offered to stockholders of record
Nov. 6, 1956 for a period of 30 days on the basis of

on

underw.it.en

,

November

Louisville

and

Corp., Ltd

(Hamlin

by J. H. Gcddard & Co., Inc. and Thornton,
Mohr & Parish) 230,000 shares.

6z

Eons

&

(11/12)

26

stock

Mcdojitney-

Spar-Mica

be

Pacific Lighting Co.—
(Bijch

Edwards

G.

Co., Inc.--Common

stockholders—to

common

by

(A.

$188,700

Life Insurance

it Harrisonville Telephone Co.
Oct.

$2,399,750

Pigeon Hole Parking of St. Louis, Inc. Class A Com.

Common

underwritten

&

Inc.)

Common

(Auchincloss, Parker & Redpath and Kidder, Peabody
&
Co.)
$4,050,000

(Monday)

be

Breckenridge

Wulburn,

Carrison,

of $100

writer—None.

(Monday)

Giant Food Properties, Inc. Debentures & Common

83,375,000

Harrisonville Telephone Co.___

Loyal American

19

Heritage Life Insurance Co

(Pierce,

Chicago & North Western Ry._-Equip. Trust Ctfs.
(Bids

nations

and

expansion.

share). Proceeds — For working
Underwriter—None.

capital
,

.

Cp.ntjnmd,

m vu9e

38

&8

(2002)

The ComTneTcicLl

Continued

from

page

Goddard & Co., Inc., Boston, Mass., and Thornton, Mohr
& Farish, Montgomery, Ala.

37

International Bank of Washington, D. C.

•

Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds-^
For working capital.

to
of

Co., Washington, D. C.

stock

one

held.

Proceeds — For expansion,
products, and to pur¬
Office—634 Prospect Place, Brooklyn,

per

research and development of new
chase equipment.

N. Y.

'

>

Investment Corp. of Florida
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
stock at 10 cents per share at rate of ten shares for
each preferred share bought.
Proceeds—For working
capital.
Office—Fort Lauderdale, Fla.
Underwriter—

Co.

July 27 (letter of notification) 110,000 shares of common
stock (par 20 cents).
Price—$2.50 per share. Proceeds
—For sales promotions and operating capital.
Office—

Kerr

Underwriter
Co., Inc., Palm Beach, Fla.

Fund, Inc., Los Angeles, Calif.

9,300 shares will be initially sold at $10.98 per
Additional shares will be offered at a price equal
to the net asset value of the Fund, plus a sales load of

J.

Montague,

Inc.,

William

15

Street,

share of

Price—To

working capital. Office

Colo.
and

—

911

Underwriter—Wachob-Bender

St., Greeley,
Corp., of Omaha

Sept.
for

12,

1956

each

(no par)

subscription by stockholders of record
the

at

share

rate

held.

of

two

shares

of

new

stock

Price—To

stockholders, $10 per
share; and to public, $15 per share. Proceeds—For ex¬
pansion and working capital. Underwriter—None. Pub¬
offering will be made by employees of the

and

company

qualified licensed dealers,

Lincoln

,

„

Telephone & Telegraph Co.
Oct. 1 (letter of notification) 6,653 shares of common
stock (par $16%) being offered to common stockholders
of record Sept. 17, 1956 on the basis of one new share
for each 30 shares held; rights to
expire on Nov. 12. Price
—$40 per share. Proceeds
For working capital, ,ptc.
Office—1342 M. St., Lincoln, Neb. Underwriter—None.
—

★ Ling Electronics, Inc.. Los Ange'es, Calif.
Nov. 5 filed $1,000,000 of 6% convertible
debentures due
Dec. 1, 1966.
Price — To be

supplied by amendment.
Proceeds—For general corporate purposes. Underwriter

if Ling Electronics, Inc., Los Angeles, Calif.
5 filed 183,333 shares of common stock
(par 50
cents) to be offered for subscription by common stock¬
Price—To

be

one

new

supplied

share for each six shares

by amendment.

—For general corporate
purposes.
& Co., Inc.,
Dallas, Tex.

if Long Island Lighting Co.

Proceeds

Underwriter—Perkins

Aug. 1, all for 4%s, but

(12/5)

Lorain Telephone Co.
stock

share for each 20 shares of record
Sept. 24;
rights to expire Jan. 2, 1957. Price—$25
per share.
Prore^m^urse company for additions to
property
in
Ohio and for other
corporate purposes.
Office—203
West Ninth St.,
one

Lorain, Ohio. Underwriter—None.

Los Angeles
Drug Co.
11 filed
$500,000 of 6%
debentures due Aug. 1, 1971.
Oct.

„

subordinated

Price—At par (indenomi-

to

stock

be

offered

for

(par $1)
stockholders

subscription by common
15, 1956 at the rate of one new share for
(with an oversubscription privi¬
lege). Price—To be supplied by amendment.
Proceeds
—To increase capital and
surplus. Underwriters—J. H.
of record

Oct.




each

four-shares

•writer

Lyon,

were turned down.

No

Ohio

on

June

Inc.,

New

.

supplied

Co.,, Jackson. Miss

-,

<

Investment Trust,

(by amendment)

an

St Louis, Mo.
additional $250,000

/

-

,

on

value of Contracts of Sale.. Price—To be based
upon the
terms of the particular
Contract, and negotiations with
the individual purchaser.

Corp., Mobile, Ala.

common stock (par
$5) be¬
ing offered for subscription by coming stockholders of

10

Oct.

shares

30

on

the

basis of

one

held; rights to expire

on

share for each

new

Nov. 20.

Price—$21

]aer share. Proceeds—To reduce bank loans. Underwriter
•

amendment.

Proceeds

be

named

For exploratio

—

later.

Michael Tzo

Oxford

Loan Co.

.

Sepi 17 (letter of notification) $250,000 of 6% renewabl
debentures payable (upon demand) Sept. 10, 1961. Pric

—A:t

face

each).

amount

Proceeds

(in denominations

—

Securities
•

of $100 and $50
Office — 223

For working capital.

St., Philadelphia, Pa. Underwriter—Wain
Corp., Philadelphia, Pa.

.Pacific Lighting Corp.

Oct.

10

filed

preferred

200,000

stock

(no

(11/12-16)
shares of ctfniulative convertibl
Price -7- To be supplied b

par).

amendment. Proceeds—For construction program.

Under

writer—Blyth & Co., Inc., San Francisco and New Yor
•

Equipment Corp.
(letter of notification) 60,000 shares of com
.stock (par $1)./Price—$5 per share. Proceeds—Fo
construction of 250 race ticket machines; for pureha"
of 40 machines for issuance of semi-blank race ticket
Aug-

'

24

mon

and for working capital and general corporate purpose

Office—527 Madison Avenue, New York 17,
derwriter—Wistor R. Smith & Co., 40 East
New

York

22.

N.

Mohawk Airlines, Jnc., Ithaca, N. Y.¬

Oct. 26 filed

$794,000 of 5%% convertible subordinated
debentures due Aug. 1, 1963, of which
$100,000 principal
amount will be offered in
exchange for

outstanding 6%

convertible notes.- Price—To be supplied by amendment.
Proceeds
For
general corporate purposes.
Under¬
writers—Mohawk Valley Investing Co.; Ailen &

Y.

1

,

N. Y. Un
54th Stree

'

.

.

Peerless Life Insurance Co.

Oct:

8

stock

(letter

of notification)

(no par).

Price—$25

general corporate

Oct. 11 filed 30,000 shares of
record

by

Underwriter—To

Pari-Mutuel

one preferred and f rnr com¬
mon shares.
Price—$40 per unit. Proceeds -r For purr
chase of machinery and equipment. Office—New
Albany.

Service

*

Montreal, Canada

pariakis, of Miami, Fla., and Denis Colivas, of Mo.ntrea
Caiiada, are large stockholders.

Mississippi

$5) to be offered in units of

Gas

Minins; Corp.,

North Broad

April 23 (letter of notification) 7,475 shares of preferred
(par $20) and 29,900 shares of common slock (par

Mobile

Bids—Those received up to 1

Oct. 15 filed 900,000 shares of capital stock (par $1),
which 200,000 shares are now outstanding. Price—To b
cQjsts.

date

stock

•

Dillon, Union Securities & C
(jointly); Harriman Riole

30 were rejected.

(EST) on Oct.

Orefis'd

located in South Central Peru, and for
general corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
York. Offering—Postponed.

&

of Johnstown, P
Whaleysville and Ocea

of

Co.

Power

ly); Lehman Brothers.
•a.m..

York

Underwriter—Lewis

director,

a

Grazier

Co., Inc. and Stone & Webster Securities Corp. (join

&

cent).

Miss.

Korns,
A.

Kuhn Loeb & Co.; Eastman

filed

22

F

and Salomon Bros. & Hutzler

2,500,000 shares of common stock (par
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin
lead-zinc-copper-silver mine
one

—

able bidders: The First Boston Corp.; Blyth & Co.. lnc

Mich.

properties. Underwriter—Mineral Projects
Village Road, Madison, N. J.

Minerals,

Paul

James

Proceeds

operation of amusement pier. Unde

and

Septi'20 filed 60,000 shares of cumulative preferred stoc

Mineral Projects-Venture E,
Ltd., Madison, N. J.
16 filed $2,500,000 of
participations in limited part¬
nership interests. Proceeds—For acquisition and explo¬

Co., Ltd., 55

debenture bonds due July

(par $100). Proceeds—For construction program. Undc
writer—To be determined by competitive bidding. Pro

Oct.

ration of oil

Alle

City,*Md., is Chairman of the Board.

held.

new

—

Col.

Lt.

Proceeds—For

purposes.

11,500 shares of commo
share. Proceeds —- Fo
—
1310 Gulf Stat

per

Office

Bldg., 109 North Akard St., Dallas, Tex.
Newborg & Co., New York. > •
~
•

Pennsylvania &

Oct.

29

Southern

Gas

Co.

Underwriter
'

4.

(11/13)

notification) $300,003 of 6% deben
tares due Nov. 1, 1976 (each $1,000 unit having attache
a ..warrant
to purchase 20 shares of common , stock
$12 per snare). Price—At principal amount. Proceed
To .repay existing loans and notes outstanding and-1°
working capital. Office—1420 Walnut St., Philadelph1
Pa.
Underwriter—Lewis C. Dick Co., also of Phlia
delphia.
•
•
'
'
4
(letter

of

-

—

,

Co.,

Gregory & Sons..
convertible

nations of $500 and
$1,000 each). Proceeds—For equip¬
ment, inventory and working capital.
Underwriter—
Quincy Cass Associates, Los
Angeles, Calif.
Loyal American Life Insurance
Co., Inc.
(11/12-16)
Sept. 28 filed 230,000 shares of common

each three shares held

for

amendment.

Address— Gibsonia,

Price—$300 per unit.

stock.

construction

to

—None.

(letter of notification) 4,994 shares of common
(no par) being offered to stockholders on the

basis of

by

-

common stock (par 0
in units of one $100 bond and 2

offered

be

of

shares

for bids has been set.

^Mississippi

—

1

share

eac

1976^and 4,000,000 shares of
cenlkl/io

—

*

Oct. 31 filed

Nov. 7 filed $20,000,000 of first
mortgage bonds, series I,
due Dec. 1, 1996.
Proceeds—To repay bank loans and
for construction program.
Underwriter
To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; W. C.
Langley & Co.; Blyth & Co., Inc.
and The First Boston
Corp. (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.
Oct.

new

supplied

Mission Appliance Corp. of

Nov.

holders at the rate of

one

be

recor

City Pier Carp., Berlin, Md.

Ocean

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 bark loans
and for construction
program.
Underwriter
To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Bostor Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on

—Perkins & Co., Inc.,
Dallas, Tex.

held.

of

common stock of

Underwriter—None.

heny County, Pa.

Detroit, Mich.

Lincoln, Neb.

to be offered for

basis

general corporate purposes.
Office—South
Underwriter—William C. Roney & Co.,

Tenth

Life Insurance Co. of South Carolina
Oct. 15 filed 339,600 shares of common stock

lic

the

Proceeds—

of

Price—At par ($25 per share). Procee

demand,, note..

—To -reduce

$400 of deben¬
Price—$500 per unit. Proceeds — To produce a
Address—c/o Myer, Weiss, Rosen & Rose, 420 Lin¬
coln Road, Miami Beach, Fla. Underwriter—None.

—At

Underwriter—Birke
4 ;

, .

15,-1956 on the basis of one new share for

four shares held.

stock and

Oct. 26 filed 59,386 shares of common stock
(par $5)
be offered for subscription
by common stockholders

For

of S«pt,

OctHt filed $2,000,000 of 6%

common

t

Pittsburgh Telephone Co.

North

Kinney Loan & Finance Co.
Sept. 11 (letter of notification) $150,000 of 6% sinking
fund capital debentures, series A. due Sept.
1, 1971. Price
each.

wor

Sept.^12 (letter of notification) 6,000 shares of commo

Co., Lexington, Ky.

one

Colo,

stoek^to be offered to holders

Michigan Seamless Tube Co.

$1,000

for construction

bonds;?and

new

may.fr & Co., Denver,

-

play.

which John Kerr is also President.

of

.

St., Salt Lake City, Utah.

State.

-

tures.

price. Proceeds—For investment. Invest¬
Manager — California Fund Investment Co., of

denominations

the

santeCfor

New

and

units of

of such

in

-

Nashvill

Indefinite

New South Wales,

#

if Miami Musical Theatre, In".
Oct. 26 (letter of notification) $80,000 of 5% debentures,
dated Nov. 1, 1956 and due Nov. 1, 1966 and 200 shares
of class A common stock
(par $100) to be offered in

which

par

-

,

—

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of co
'moiStock (par 3% cents). Price—10 cents per shar
Proceeds
For mining expenses. Office — 345 Sout

Bond

share.

ment

Corp.,

Offering

and New York, N. Y.

positioned.

working capital. Office—932 Paterson Plank
Road, East Rutherford, N. J. Underwriters — Mohawk
Valley Investing Co., Inc., Utica, N. Y., and Security and

July 30 filed 100,000 shares of capital stock (par $1), of

8%%

Securities

Equitable

—

Underwriter—Kidder, Peabody & Co., New York.

ment

Highway, Lake Wales, Fla.

Income

Terpf*

Oct. 8 (letter of notification) 13,375 shares of 6% cumu¬
lative preferred stock.
Price—At par ($20 per s.ia.e),
plus accrued dividends. Proceeds—For expansion, eq f o¬

Joa Co.

Cook

—

supplied by amendment. Pucee
— Little Rock,
Ar

stockholders. Office

Undfetwruer

writer—Standard Securities Corp., Spokane, Wash.
Matheson Co., Inc.

capital. Un¬
derwriters—McLaughlin, Cryan & Co. and Ge^rhart.A:
Otis, Inc., both of New York.
...
* '

No. Scenic

Toufseiling

sup¬

Mascot Mines, Inc.
|
July 9 (letter of notfication) 280,000 shares of common
stock (par 17% cents). Price—25 cents
per share.
Pro¬
ceeds—For payment on properties; repayment cf ad¬
vances; exploration and development and working capital. Office—508 Peyton Bldg.,
Spokane, Wash. Tinder-

—To pay short-term loans and for working

411

(par $2). Price—To be

common

York 17, N. Y.

Oct. 4 filed $3,000,000 of 6% convertible debentures due
Nov. 1, 1966. Price—100% of principal amount. Proceeds

—Anderson

shares of Foremost

21-day standby). Price—To be

Co.
Tf5, 1955 filed 50,000 shares of class A common stoc
and -50,000 shares of - class B common stoc

(par" J2)

Australia
-sfElectricity Commission of) (11/15),,,
Macinar, Inc.
* xV,:OcfetJJ6 filed $7,500,000 sinking fund bonds. Price—To
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
suppRed by amendment Proceeds—To redeem $6,976,0U
—For general corporate purposes. Business — Manufac¬ .31/2% sinking fund bonds, of The Sydney County Counc
tures
steel and aluminum specialty products.^ Under* duesrJan. 1, 1957, the holders of which may exchan
writer—C.

None.

(F. L.)

12 V2

Nov.

,

'

Jacobs

a

Underwriter—None.

National Old Line Insurance

<

Underwriter—None.
-

posessi-

To Foremost Dairies,
Inc., the selling stockholder. Underwriters—Allen & Co.,
New York, and Dean Witter & Co., San
Francisco, Calif.
Offering—Not expected until December.

share.

Price—$17

(with

plied by amendment. Proceeds

share for each five shares

new

share for each
held

policies. Price—$7.50 per shar
capital and other coiporate pur

Proceeds—For working

Lucky Stores, Inc., San Leandro, Calif.
11 filed 630,000 shares of common stock (par $1.25)
be offered for subscription by common stockholders
Foremost Dairies, Inc., in the ratio of one Lucky

Stores

it International Postal Supply Co. of New York
31 (letter of notification) 4,256.6 shares of capital
stock (no par) to be offered for subscription by stock¬
Oct.

insurance

life

certain

Oct.
-

Underwriter—Johnston, Lemon &

holders at the rate of

eud^FiuciucioX Chronicle... Thursday, November 8, 195

National
June
stock

19

(letter of notification) 2,000 shares of common
Price—$5 per share. Proceeils—To pay

(par $1).

Federal
Des

estate

taxes.

Moines, Iowa.

Inc..

a^a

.

By-Products, Inc.

Des

Moines,

Office—800 Bankers Irust Bldg.
Underwriter—T. C. Henderson & Co.,
Iowa.
,

National Life of America,

Mitchell, S. Dak.
Sept. 21 filed 86,784.7 shares of common stocK (par $5)
to be offered for subscription
by each of the company's
23,279 policyholders on and as of July 31, 1956 at the rate
.

of 1% shares of such stock and the balance of the shares
to be exchangeable for Founders certificates
and cou¬
pons

issued

by National

Life

as

a

part

or

feature

of

Pigeon Hole Parking of St. Louis, Inc. (11/19)
Oct: 29 filed 300,000 shares of class A common stock (pa
25 cents).
Price—To be supplied by amendment (pr
posed maximum offering price is $3.25 per share). *
ceeds -— To
construct
and
operate two multi-ie
automobile
parking structures,
utilizing a Pate5L
mechanical device. Underwriters—A. G. Edwards & b
'

and
•

Dempsey-Tegeler & Co., both of St. Louis, Mo.

.Pittsburgh Consolidation Coal Co.

Oct. 3

filed

..

2,678,697 shares of common stock
being offered in exchange for common stock of
tas Fuel Co.

on

the basis of 2%

Jpartd'
Pocan

shares of Pittsburgh

each

Pocahontas common share. The offer will be
clared effective if at least 85% of the latter shares P
-been deposited for, exchange by
fective Oct. 23.

Nov. 30.

Statement

_

Number 5584

i<u

...

The Commercial and Financial Chronicle

★

Properties, Inc., Houston, Texas

.wine

Pri0rffilpd

555,000 shares of common stock (par 10(f)
ct'1 SLpA in exchange for shares of common stock
be

t

(2003)

Exploration

Tuan

Co. at rate of 0.46413 of

Seaboard

Oct. 15 filed 1,598 shares of common stock
(par $5)
800 registered 6% mortgage bonds due March

—To

a

San/producing Properties stock for each San Juan
The offer is to expire at 3 p.m. (CST) on Nov.

ton

Sun

reduce

bank

loans.

Corp., New York.

Underwriter—The

First

★ Sbarron Oil & Gas Co., Inc.
29 (letter of
notification) 8,750,000 shares of

rch 21

ctnrk (oar

n0S;/
cee«=

For
t"

(of $1,000 principal amount each).

two cents).
Price—Five cents per share
mining expenses.
Underwriter-^Skylin#

construction.
•

°H for

construction program. Underwriter—To be detervLd bv competitive bidding. Probable bidders: Halsey,
Inc.; The First Boston

1986.

iai Alai, Inc.
filed $1,500,000 of 12-year 6% first mortgage
onds <h'e 1968, and 300,000 shares of common stock (par
n to be offered in units of a $500vbond and 100 shares

Price—May be $675 per unit. Proceeds — For
onstruction of fronton and related activities. Office—
n Juan,
Puerto Rico. Underwriters—Crerie -& Co.,
ouston, Texas; Dixon Bretscher Noonan, Inc., Springidd, 111.; and Aetna Securities Corp., New York. . Offer¬
g-Indefinite.
•
" 'V-

for

.

Underwriter

Redi-Food
ct, 8

$173,180 debt to Trans-Union Prciducfor working capital.- Business—TeieL. Aaron & Co., New

Co., Inc.

(par

cents).

10

150,000 shares of

Price—$2

lace, New York City.
alC, N. J.

rice

-

Underwriter—Kopp & Co.;. tas-

Oct. 4.

'

,-ji'

.

Remark Chemical Co., Inc.
ct. 4 (letter of
^notification) 99,630 shares
timulative participating preference stock

•

Ross

(irO.)

ept. 10 filed
aiaron

19,059 shares of

Moron

shares.

common

of

Oct.

(See also preceding

10.

para¬

>

-

Price—64 V2

Proceeds—To selling stock¬

Underwriter—None.

holders-

John

cents per share.

Southwest Grease & Oil

Ross share for each two

(par $1).

;•

m

ective

v; 15,

become

Statement el¬

Small-Milburn
Herrick

f ?

Paper Co.

irP

/

Neils

ea?,

n

f'/1'

TkVt?

-

common share. The Oifer/wiU exunless extended. Exchange Agent

^4u7>

■

enturpQ

'«endment
Station I'

V

,

,oceeds—To retire banK loanj, for

development

activities

and Ioj

'50

rnn

(par $5). Price — To be supplied by amendment
(proposed maximum offering price is $6 per share). Pro¬
Office—Montreal, Canada.
Underwriters—Hamlin & Lunt, Buffalo, N. Y.; Allen &
Co. and Cowen & Co., both of New York, N. Y.; and

ceeds—For construction costs.

Straus, Blosser &

Philadelphia, Pa.
shares of preferred stock (par $7.50)

1

res ol^common stock (par five cents) to
Wian „,!/connectlon with the merger of Paulsboro
er
share
pS tJ°' inl° Sandura. Co., Inc". Pride-^-$10

Stevens

"

Proceeds

hiladelphia1

Pa

—

For

exDansion

Pnderwriter

~~

eo>

inment

and

Butcher & Sherrerd,




McDowell, Chicago, 111.

(J. P.)

Pro¬

380,000 shares of

com¬

which

2,000,000

shares

are

to

be

(par 10
offered

*

:

•

week.

Universal

Fuel

&

Chemical

Corp.>r

(letter of notification) 300,000 shares of capital
Price—At par ($1 per share). Proceeds—For min¬

May 17
stock.

Broadway, Farrell, Pa. Under¬

ic Uranium Exploration, Inc.
(letter of notification) 400,000 shares of common
(par 10 cents). Price—50 cents per share. Proceeds:—For mining expenses.
Address—P. O. Box 852,
12-Eighth Ave., Minot, N. D. Underwriter—None.
Oct. 23

stock

& Co., Inc., New York

$30,000,000 of debentures due July 1, 1981.
supplied by amendment. Proceeds—To reduce short-term loans, to retire $950,000 of 4%% first

Van

Horn

Butane Service

(11/14)

44,000 shares of cumulative convertible
preierred stock, series A (par $25). Price—To be sup¬
plied by amendment.
Proceeds—To acquire stock of
Liquid Gas & Appliance Co., Teton Gas & Appliance
Go., General Equipment Co., The McHade L. P. Gas Co.,
Lincoln Gas & Appliance Co. and Sweetwater Gas &
Sept.

28

filed

Equipment Co.; and stock and certain assets of Ransome
Co. of Nevada; to reduce short-term indebtedness; and

working capital. Office—Fresno, Calif.
—Schwabacher & Co., Inc. and J. Barth
for

of

San

Francisco.

Underwriters
& Co., both

Calif.

lncM Miami, Fla.
of common stock. Price—
At par (20 cents per share).
Proceeds—For exploration
and mining operations in Venezuela.
Underwriter—Co¬
lumbia Securities Co., Inc., of Florida, Miami, Fla.
Venezuela

Diamond

Mines,

c

Aug. 31 filed 1,500,000 shares

Venture

Securities Fund,

Inc., Boston, Mass.

Sept. 4 filed 200,000 shares of capital stock (par $1).
Price—initially at $25 per share. Proceeds—For invest¬
ment.
Underwriter—Venture Securities Corp., 26 Fed¬
eral

St., Boston, Mass.

Productions, Burbank, Caiif.
$7,500,000 of convertible subordinated
1976. Price—To be supplied by
amendment.
Proceeds—$243,740 to redeem outstanding
4% debentures, series A, due 1960; balance for retire¬
Wait Disney

Aug.

24

filed

debentures

of

due Sept. 1,

secured

demand

note.

Underwriter—Kidder,

June 28 filed

issuedj

orkn^
;orkin

Ala., is President.

stock

ex-

general

i^n An'0*:*'
ud
e

-

Spar-Mica Corp., L*d. (11/19-21)
Oct 29 filed 400,000 shares of 5% convertible preferred

P°SeS' Underwriter— White, W eld & Co.,

york

Underwriter—Southwestern Secu¬

of common stock (par $1),
of which 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 Corp.
Price—$2 per share. Pro¬
ceeds—For purchase of stock of Capital and Allied firms
and for, purchase of U. S. Government bonds. Underwriter—None, but a selling commission will be allowed
to dealers for sales effected by them.
Elvin C. McCary,
of Anniston,

,P0troBei,m CorP' dl/15)
$J?>OC0,000 of subordinated convertible de^°V* h 197L Pnce - 'l0 be supplied by

rporatp
ew

"

.

curities Corp. of Indianapolis/ lnd., for

w

purposes.

Dallas, Texas.

Southwide Corp., Arniston, Ala.

J

ctT4

1,000,000 shares of .common
Price—$5 per share. Proceeds—To -exerpise opadditional properties and for general

purchase

Sept. 12 filed 450,635 shares

-

aa

nn§ t0 residents
of Indiana.

tions,

rities Co.,

-

fterina T

Lathrop,

Fe, N. M.
stock (par 25

filed

corporate

Inc., Denver, Colo.
1 stork
»-T
-houiicauon) 2o,o0d,uuu shares of capiFor orir
par
cents per'share;. Proceeds
ore awnv
I)g' .deluding geological research and
Ption
arming shaft; to exercise purchase of

f!/ern<7nt on additional properties; ror working
auuiuu
idianaaQw0ti?er^corb°rate purposes. Underwriter —

8

cents).

u?a^s,°" Uranium»

apitai
spital

Inc., Brooks & Co. and
Inc., all of Wichita, Kan.

Southwestern Resources, Inc., Santa
June

-

ortlLd Or?aUOnal h*nk °f PorLand> p*

,

•

•' J ■
.
;
snares of-common stock (par $5) to
n»r «ir»\
/I exchange for outstanding common stock
CLW of J: Neivs Lumber Co. at ra\e .of 2Vz ot. Regis

750>000

nHW

e

Co.,

& Clinger,

par.

entertainment

writer—Langley-Howard, Inc.. Pittsburgh, Pa.

effective

Underwriter—None.

Oct. 3.

fl*ftReS's

will

and

Underwriter—None.

ing expenses; Office—825

Co.

Sept. 27 (letter of notification) 40,000 shares of common
uporf desit pi at
--stock.. Price—At par ($7.50 per share).
least 90% of the
Proceeds—For
outstanding common stock,
MVfiich
purchase of new equipment and working capital. Office
Ross-presently owns 61.53%. The offer "will
—220 W. Waterman St., Wichita 2, Kan. Underwriters—
Offer

theatrical

Conditioning Corp.
SepL. 27 filed 600,000 shares of common stock (par 10
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
for reoffer to the public.
Price—At market prices. Pro¬
ceeds—For working capital and general corporate purposes. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Burnside & Co., Inc., New York.
Offering—Expected

Ltd.. Toronto, Canada

750,000 shares of capital stock

in

United States Air

this

Aug. 24 filed

stock-(par $1)
stock

on

Union Oils

Southern

common

in exchange for
Corp. at the rate of one

•

»•

(EDT)

of

New York.

Telephone & Telegraph Co.

graph.)

shares; of class B, expected at

investment

publicly and 573,625 shares will be issued in exchange
for stock of Compania de Formento Petrolero Ted Jones,
S. A. (amendment filed Oct. 16 reducing proposed of¬
fering to 1,000,000 shares). Price—$1.25 per share. Pro¬
ceeds—For development and exploration costs. Office—
Los Angeies, Calif.
Underwriter—S. D. Fuller & Co.,

(jointly); The First Boston Corp.; Salomon Bros. &
Bids—Had been expected to be^ received up to

a.m.

City

Business—A non-diversified closed-end manage¬

cents),

Hutzler.
11

York

stock

© United Cuban
Oil, Inc. (11/19-21)
Aug. 29 filed 2,573,625 shares of common stock

competitive bidding.
Blyth & Co., Inc.; White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and Cooley &

Co.,

Engineering Corp., New York^

eing offered

At¬

Underwriter—To be determined by

Co.

A

Togor Publications, Inc., New York
J6 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.

Frobable bidders:

of class A

class

of

Nov. 20.

New

March

(See also next paragraph.)

Proceeds—To American

shares

on

Inc.,

Underwriter—Eaton & Co., Inc., New York.

Southern

Co.

t..l

L. Edenfield &

Inc.,

Plan,

stock (par 10 cents).
Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.

Offering—Date indefinite.

outstanding stock of Southern New England Telephone

'*

(par 80 cents),
rice—$1.75 per, share. Proceeds—For .completion of a
ulphur mill; working capital, etc. Office—64 N. IE.' 73rd

Miami, Fla. Underwriter—Frank
Iiami, Fla.

Co.,

Ex¬

Scott,

mon

New England Telephone Co.
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
ot new capital stock (par $25) to be issued to American
Telephone & Telegraph Go.,-which owns 21.61% of the

~

(par-' $1).

—

Y.

Robinson-Hiimphrey

52,000

(EST)

a.m.

Thermpray Corp.
June 29 (letter of notification)

phone & Telegraph Co. (approximately $15,800,000) and
for property additions and improvements. Underwriter
—None. Offering—Delayed indefinitely by company on

To be supplied by amendment. Proceeds —1 For
orking capital and .construction program. Underwriter
Blyth & Co., Inc., San Francisco, Caiif., and New York,
•

The

—

filed

to 11:30

ment investment company.

New

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¬

common

.

of

Oct.

.

share. Proceeds—
Office—25Ca" Butler

C^enticafs, Inc., (11/14)
200,000 shares of common stock

ct, .19 filed

both

England Telephone Co.
Sept. 19 filed 679,012 shares of capital stock (par $25),
to be offered for subscription by stockholders of record

v

Reich'-old

& Beane,

Southern New

per

purchase plant and equipment.

0

7

.

(letter of notification)

tock

lanta, Ga.

Underwriter—E.

x

fields.

public, $14.50 per share; and to certain
per share. / Proceeds—To pay bank loan.

$13

persons,

to be offered to public* and

X-s.

30

ceeds—For

Price—To

sons.

6,000 shares issued to underwriter. Price—$5 per share,
roceeils—To retire $125,000 of outstanding 15%
dejaen-

■■

Fenner

P.

Underwriter—None.

Interests

not less than 25

be

of

Lynch, Pierce,
City.

Stock

A.

(par five
cents) and 28,000 shares of class B stock (par five cents).
Price—Of class A. expected at $10 per share in lots of

Southern General Insurance
Co., Atlanta, Ga.
Sept. 24 filed 95,714 shares of common stock (par $5), of
which-50,0G0 shares are to be joffered 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¬

•*■

•

Oct.

by common
stockholders
of
record
the basis of $100 of debentures for each

Merrill
York

Toronto

Proceeds—To

Power &

Theatrical

1986, to be offered

—

Pyramid Productions, Inc., New York
ept. 27 filed 220,000 shares of common stock (par $1),

"ork.

subscription

the

or

sale.

selling stockholder.

be received up

held; rights to expire on Dec. 3.
supplied by amendment (expected to be
principal amount). Proceeds—For capital ex¬
penditures. Underwriters
Smith, Barney & Co. and

share. Proceeds—To - purchase real- property and
ortgage notes. Underwriter—Coombs %& Co; of. Washngton, D. C.
''
..7

and

-

100%

1 per

ision releases.

new

$170,593,900 of convertible

Price—To

Pyramid Development Corp., Washington, D. C.

ions, Inc.;

for

Nov. 14, 1956, on
nine common shares

uly 27 (letter of notification) 300,000 shares of common
tock (par 10 cents), of which 25,000shares are- -to "be<
eserved for issuance upon exercise ,of options.
Price—

as a

and

Sinclair Oil Corp. (11/15)
25 filed, not to exceed

Oct.

subordinated debentures due Dec. 1,

stock.

well

loans

Underwriter—To

rities Corp. and Dean Witter & Co.
(jointly); Blair & Co.,
Incorporated. Bids—Expected to be received up to 11
a.m.
(EST) on Nov. 14 at 49 Federal St., Boston, Mass.

Puerto Rican

ures as

bank

Exchange

private

by

Light Co. (11/20)
Oct. 16 filed $10,000,000 of first mortgage bonds due 1986.
Proceeds—To repay advances and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., Blyth & Co., Inc., Kidder, Peabody
&
Co.
and
Merrill Lynch,
Pierce, Fenner & Beane
(jointly); Eastman Dillon, Union Securities & Co. and
Salomon Bros. & Hutzler
(jointly); White, Weld & Co.;
Lehman Brothers, Drexel & Co. and
Hemphill, Noyes &
Co. (jointly); The First Boston Corp.
Bids-^Expepted to

(11/14)

repay

Stock

or

Texas

be determined by com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Stone & Webster Secu¬

uly 27

are

the

petitive bidding.

Newark 1, N. J.

shares

Proceeds—To

construction.

Lehman

f which 200,000

change

Underwriter—None.

Sierra Pacific Power Co.

1,

n

f

American

Oct. 11 filed $3,000,000 of first
mortgage bonds due Nov.

Corp.; Kuhn, Loeb &
Brothers (jointly); Morgan Stanley &
and Drexel & Co. (jointly).
Bids—Expected to be
eceived lip to 11
(EST) , on Nov. 14, at 80 Park
lace,

Texas Calgary Co., Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 25
cents).
Price—At market from time to time on the

Oct.

Public Service Electric & Gas Co.
(11/14)
f 16 filed $50,000,000 first and refunding mortgage
"/due Nov. 1, 1986. Proceeds—To reduce bank loans

& Co.

par
(one cent per share). Pro¬
expenses,
Office—1620 Cook St.,
Underwriter—None.

County, Fla.

Underwriter—
Ernest C. Cassill is President and Treasurer.

None.
com¬

★ Sitzmark, Inc., Wilmington, Del.
29 (letter of
notification) 8,000 shares of common
stock (par $1). Price—$5
per share. Proceeds—For new

o

property in Broward

upon

drilling

Denver, Colo.

Price—At par. Pro¬

ceeds—To construct and operate a resort motel and club

Price—At

ceeds—For oil

shares of com

ecurities^ Inc., Denver 2, Colo.

and

stock.

mon

Federal Uranium WW 00
Corp.
fi
(letter of notification) 6.000.000

evidential
prUOenu

Castle, Inc., Pompano Beach, Fla.
15, 1972

Bos¬

Offering—Has been withdrawn.

Oct.

5,1956.

tnart

and

Finance Co.

Sept. 18 filed $15,000,000 of sinking fund notes due Oct.
1, 1971. Price—To be supplied by amendment. Proceeds

iare

1

39

IB*

olume

'r
-

ment

Price—To be

Statement withdrawn. Com¬
pany now plans stock offering
to shareholders.
(See
under "Prospective Offerings.")

and $368,679 of 6% preferred stock, of
Underwriter—Goldman, Sachs & Co., New
Offering—Indefinitely postponed.

mortgage bonds

subsidiaries.
York.

Peabody & Co., New York.

Continued

on

page

40

40

The Commercial

(2004)

Continued
•

>

from

page

v

Western States Natural GasXo;"

.

for this issue.

*

Wheland Co., Chattanooga, Tenn.
May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1,1976, and 136,000 shares of common
the company's account and 61,000 shares for a selling
stockholder.
Price — To be supplied by amendment.

•

•

Wildcat Mountain 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¬
ture and three shares of stock.
Price _— $500 per unit.
Proceeds—For construction and working capital. Busi¬
ness—Mountain recreation center. Underwriter—None;
offering to be made by officers and agents of company.

,

was

announced

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 for ex¬
pansion program.
Business—Meat packing firm. Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.

plans to sell 80,000

Dec.

~

11.

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 stock.
Price—$5 per share. Business—Producers of fresh orange
juice. Underwriter—Burton J. Vincent & Co., Chicago,
Oct. 15 it

was

"

.

to

■

,

..

reported company plans to issue and sell
residents of New York State 50,000 shares of common

stock.

was

Underwriter—Foster-Mann,

Price—$2 per share.
Power &

Light Co. (12/11)
Oct. 15 it was reported company plans to issue and sell
approximately
$20,000,000 30 - year first mortgage
bonds. Proceeds
To repay bank loaris and for con¬
struction program. Underwriter—To be determined by
competitive 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 ll:o0
—

Prospective Offerings
Appalachian Electric Power Co.
May 31 it
sell

in

announced company plans to issue and

was

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 Ripley

Co. (jointly); The First
& Co., Inc.

Associated Truck Lines, Inc.

•

Get. 11 it

-

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
short haul motor common carrier operating over 3,300
miles or routes in Illinois, Indiana, Michigan and Ohio.
Office—Grand Rapids, Mich. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston, Mass., and New York,
N. Y. Offering—Indefinitely postponed.
was

Boulder

Acceptance Corp.,

Boulder, Colo.
July 16 it was announced company plans to offer and
sell 3,000,000 shares of its common stock. Price—At par
($6 per share). Proceeds—To construct hotel; set up in¬
stalment loan company; and for working capital and
Underwriter—Allen Invest¬
Co., Boulder, Colo. Stock to be sold in Colorado.

Burroughs Corp.
Oct. 15 it

totaling
in

the

was

announced

between
form

expansion

of

that plans for new financing

$25,000,000

convertible

program.

and

$30,000,000,

debentures.

Underwriter

—

probably

Proceeds—For

May

be

Lehman

Brothers, New York.
reported company plans to issue and sell
between $15,000,000 and $20,000,000 of first mortgage
bonds. Underwriter—To be determined by competitive
was

bidding. Probable bidders: Halsey, Stuart & Go. Inc.;
Kuhn, Loeb & Co/ and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly).
Offering—Expected in 1957.
Chase Manhattan

Dec.

11.

Bank, New York

certificates

trust

ment

(11/1.3)

in 15 riqiial annua
Halsey, Stuart & Co. Inc.

mature

to

instalments. Probable bidders:

Salomon Bros. &

Hutzler.

.

,

.

May Department Stores Co. < •
July 19 it was announced that this company may under
take financing Tor one or more real estate companies
For development of branch stores and

—

re

gional shopping centers. Underwriters—Goldman, Sach
& Co. and Lehman Brothers, New York.

Edison Co.

Metropolitan

July 2 it was reported that company is considering th
sale of $10,000,000 first mortgage bonds due 1986. Under
writer—To be determined by competitive bidding. Prob

& Co. Inc.; White, Weld

Co.: Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexe
& CO. (jointly); The First Boston Corp. Bids—Not ex

pected to be received until December or early in 1957
bonds in the next 16 months.

0

j

Michigan Bell Telephone Co. (12/4)
Sept. 24 the directors authorized the company to issu
and sell $30,000,000 35-year debentures, due Dec. 1, 1991
Proceeds—For construction program.
Underwriter—T
be determined by

competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids
Expected to be received on Dec. 4.
National
1 it

Nov.

basis

increase the authorized
indebtedness from $35,000,000 to $60,000,000 and to in¬
crease
the
authorized common stock
from
5,000,000
28 stockholders

to

voted

shares to 10,000,000 shares. Underwriter—Eastman
Union-Securities & Co., New York.
' t -■

General Aniline & Film

Dillon,

Bank

of Detroit

announced bank is offering 263,400 addi

was

of

shares

of

one

capital

new

stock

stockholders

to

share for each

10

shares

th

on

held

as

0

Nov.

1, 1956; rights to expire on Nov. 21. Price—$5
share. Proceeds—For capital and surplus account
Underwriter—Morgan Stanley & Co., New York.

per

Co. (12/4)
announced'early registration is expecte

National Cash Register
25 it

Oct.

Corp.,

Sept. 21 it was announced that the Attorney General of
the United

States, following reclassification of the shares
of this corporation, plans to sell certain of the vested
2,983,576 shares of new class B stock which will then

was

of

$28,285,600 convertible debentures due 1981 to b
for subscription
by commori stockholders 0
1956, at the rate of $100 of deben
tures for each 25 common shares held; rights to expir
offered

record about Dec. 4,
Dec.

on

be held.

Underwriter

19.

—

Dillon,

Read

&

Inc.

Co.

New York.

General Public Utilities Corp.

•

Tegen, President, announced that the
going to be offered approximately
647,006 additional shares of common stock (par $5) early
Sept.

12, A.

stockholders
in 1957

held,

on

F.

are

the basis of

one

new

share for each 15 shares

Merrill Lynch, Pierce,

Fenner & Beane acted
clearing agent in previous offering to stockholders.
Hawaiian Telephone

as

High Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group'Consisting^ of Kiffih, Lbeb^S: Co.,'The First
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
loaned to firms in the Community for expansion of coal

plants and iron

power

ore

National City

Nov.

it

5

Bank of Cleveland, Ohio
is

announced/ Bank

was

offering

to

it

stockholders of record Oct. 24,1956.the right to subscrib
on or before Dec. 3 for 100,006-additional shares of capi
tal stock (par $16) on the basis-of one new share for eac'
10 shares held.
Price—$50 per share. Proceeds—To in
crease capital and surplus accounts. Underwriter—Mer
rill, Turben & Co., Inc., Cleveland, O.

Co.

July 30 it was 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.,

mines, coking plants,

(11/16)

Nashville RR.

Louisville &

Bids will be received by this company up to noon (EST
on Nov. 13 for the purchase from it of $7,695,000
equip

tional

Food Fair Stores, Inc.

Aug.

New York.

Carolina Power & Light Co.

Oct. 15 it

ly) ■; White, Weld & Co. and Shields & Co. (jointly). Bid
—Expected to be received about Jam 15, 1957.

—

on

a.m.

general corporate purposes.
ment

Underwriter—T

competitive bidding. Probable bidders

be determined by

Company presently plans to issue and sell $22,000,000

Inc., New York.
Florida

bank loaris and 'construction "program.

Halsey, Stuart & Co. Inc.; Equitable Securities Corp. an
Eastman Dillon, Union Securities & Co. (jointly); Kuhn
Loeb & Co.; Blyth & Co., Inc.; Merrill Lynch, Pierce
Fenner & Beane, Kidder, Peabody & Co. and Harrima
Ripley & Co. Inc. (jointly); Salomon ,Bros; & Hutzler
The First Boston Corp., and Glore, Forgan & Co. (joint

able bidders: Halsey, Stuart

"

Flair Records Co.

Aug. 13 it

(1 /15)
that the company* plans/the issu
ance and sale of between $18,000,000 and $20,000,000 firs
mortgage bonds due, 1987, Proceeds—For reduction 0
Louisiana Power & Light Co.

Oct. 4 it was reported

Proceeds

Eversweet, Inc.

HI.

Wilson & Co., Inc.
Aug. 28 filed $20,000,000 of

(12/11)

company

($8,000,000 of preferred stock. Proceeds — For
construction program. Underwriter — To be determined
by competitive bidding. 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); *
Merrill
Lynch,
Pierce, Fenner
&
Beane;
Lehman
Brothers; W. C. Langley & Co.. and Eastman Dillon,
Union Securities & Co; (jointly); Blyth & Co., Inc., and
The First Boston Corp. (jointly). Registration—Planned
for about Nov.. 14. ^Bids—Expected to be received on

shares

of
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured AVz% notes to a group of banks, will
series A and series B 5%
expansion program. Under¬

Delaware Power & Light Co.

Oct. 26 it

Proceeds—Together with proceeds from private sale

writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn. Offering: — Temporarily postponed.

-/.-•»

by the company, at 400 West Madison St., Chicago 6,< 111., up to noon (CST) on Nov. 8 for
the purchase from it of $3,375,000 equipment trust cer¬
tificates to be dated Nov. 15, 1956 and to mature in 15
equal*-'annual instalments.
Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Underwriter—Us-Can Securities,

be used to retire outstanding

-

(11/8)

Chicago & North Western By.

Inc., Jersey City, N. J.

first mortgage bonds, and for

^

.

Bids will be received

Aug. 24 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For development of oil and gas.
Office—Felt Bldg.,
Salt Lake City, Utah.

included among the bidders

& Co. Inc., may be

Stuart

39

and Financial Chronicle... Thursday, November 8, 1955

mines.

New

England Electric System

Jan. 3,

1956, it was announced company plans to merg
its subsidiaries, Essex County Electric Co., Lowell Elec

Light Corp., Lawrence Electric Co., Haverhill Electri
Light Co., into one compan
during 1956. This would be followed by a $20,000,00
first mortgage bond issue by the resultant company, th
aame of which has not as yet been determined.
Under
writer
May be determined by competitive bidding
Probable bidders: Halsey. Stuart & Co. Inc.; Kuhn, Loe
& Co., Salomon Bros. &> Hutzler,' Eastman-Dillon, Unio
Securities & Co. and Wood, Struthers & Co. (jointly)
/Lehman Brothers; ,The First Boston Corp.; Equitabl
Securities Corp.; Merrill Lynch; Pie.ce, Fenner & Beane
Kidder, Peabody & Co. and White, Weld & Co. (jointly)
Offering—Expected in first half of 1957.
trie

Co. and Amesbury Electric

—

New

England

Power Co.

plans to issu
bonds early
.1957.
Underwriters.
To be determined by competi
expected to be received by the company on
:ive; bidding.. , Probable bidders:
Halsey, Stuart &C
),Dec. 11 for the purchase from it of $9,000,000 equipment
frUst certificates to manure iri 15/equal annual instal¬
Inc.; Krihn^ Loeb & Co;, Salomon Bros. & Hutzler, East
stcokhoiders of record Nov. 15, 1956 on the basis of one
ments.
Probable "bidders:!£ Halsey; Stuart &-Co: Inc.; (. mdn Dillon; Union Securities & CO. and Wood, Struthe
new share for each it shares
held; rights to expire on
Salomon Bros. & Hutzler.
& Co. (jointly); Lehman Brothers; The First Bosto
Dec/3. Underwriter—The First Boston
Corp., New York.
Corp.; "Equitable Securities Corp.; Merrill Lynch, Pierce
Interstate Fire & Casualty Co.
A Chesapeake & Ohio Ry. (11/15)
Fenner & Beane, Kidder, Peabody & Co. and White
Sept.. 26 it was reported company plans to issue and sell
Bids are
Oct. 3 it

was

announced stockholders

will

vote Nov.

13

Illinois Central RR.

on

increasing the authorized capital stock (par $12.50)
from 12,000,000 shares to
13,000,000 shares, the addi¬
tional 1,000,000 shares to. be offered for
subscription by

expected to be received by the company on
Nov. 15 for the purchase from it of
$7,800,000 of equip¬
ment trust certificates.

Probable bidders:

& Co.; Salomon Bros/ &c Hutzler,

Halsey, Stuart

Bids

(12/11)

and

75,000 additional shares of
—White

&

Co., St. Louis,

Bloomington, 111.

common

stock.

Underwriter

Mo." Offices—.Chicago

and

to be dated Nov.

bidders: Halsey,

1, 1956 and to mature in 30 equal semi¬
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.

Chicago & Illinois Midland Ry.
Sept. 29 it was announced the ICC has denied an
ap¬
plication by this company for an exemption of $9,000,000
of first mortgage bonds from

Proceeds—To

the Commission's bidding
retire

$7,450,000 of 4%%
allow the company to buy

unsecured serial notes arid to
J299 box cars which it now leases.




Underwriter—Halsey,

.

To

sell

was

announced

be

company

of first

$10,000,000

now

mortgage

Weld & Co. (jointly).

New England Telephone. & Telegraph Co.
was announced that the company plans

Oct 16 it

,

Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds.
Underwriter—

annual instalments.

it

—

and

-

3

are

Chicago, Burlington & Qurticy RSL tll/8)
Bids will be received
by this company at its office in
Chicago, 111. up to noon (CST) on Nov. 8 for the pur¬
chase from it of $3,600,000
equipment trust certificates

Requirements.

Jan.

determined

by competitive bidding.
Probable
Stuart &*Co. Inc.; Kidder, Peabody &
Co.; Tlie First Boston Corp.; White, Weld & Co.; East¬
man
Dillon, Union Securities & Co., Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Beane
(jointly).
Libbv, McNeill A Libbv

Oct. 15 it was reported that the company is said to be
considering new financing in the neighborhood of be- i
tween $15,000,000 to $20,060,000.
Underwriter—May be
Glore, Forgan &.Co»., New York.

(1-8)
to issu

sell

$35,000,000 of 29-year debentures. Proc^d b
To repay temporary borrowings." Underwriter
-7.j*?
determined by competitive bidding.
Probable bldder'
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor
gan StanlPy & Co. Bids — Expected to be received oi>
Jan. 8, 1957.
New Jersey

Sept. 12 it

was

Power & Light Co.
announced company

plans to issue a

$5,000,000 of first mortgage bonds. Underwriter
To be^ determined by competitive bidding.
Br0DTaoh
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., b
man Brothers and Salomon Bros. & Hutzler (.join y>

sell

Eastrrian Dillon, Uriiorif SectiHties &' Co.
& Co. (jointly); Equitable Securities
Boston Corp.;

arid White, /L,
Corp.; The

Merrjll Lynch, Pierce, Fenner

& uea

Number 5584

184

Volume

...

>(12/6)

Central RR.

York

The Commercial and Financial Chronicle

^"eWii'he"received

••

bidders:

'

by the company on Dec. 6 for the
Bids.wiii
of $8,055,000 equipment trust certifipurehase -—an
1957 and tQ mature annuaiiy jrom
cateSi us to 19"° inclusive. drnkok1 a bidders: xjrtlnatr
Probable
Halsey,
958 to 1972,
Jan-

v ;

rnn

n*

Pennsylvania

Electric & Gas Corp.
94 it was announced company plans to sell in the
of 1957. $25,000,000 of debt securities and an
SS!Iinnal $20,000,000 in 1958. Proceeds — To finance

Bids
time

.

are

by competitive biddingi Probable bidders:
Halsey, Stuart & Co. "Inc.? Blyth & Co:/ Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill
Lynch, Pierce,

in

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

RR.

expected to be received by the company
for the purchase from it of

some¬

December

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

about

•

$9,200,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

0

Underwriter—To be determined
bidding. Probable bidders: Halsey, Stu*
To Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and
£!ith Barney & Co. (jointly); The First Boston Corp.
Tr.We Forgan & Co. (jointly); Harriman Ripley &
program.

trnrtion

?nfmbetitive

Phillips Petroleum Co.
Sept. 24 it

♦

Co

will

Kidder, Peabody & Co, and Salomon Bros. &
(jointly).
Niagara Mohawk Power Corp.
Inc •

tures.

Machold, President, announced that the
plans to sell in the near future $50,000,000 of
convertible debentures. The stockholders on Dec. 4 will

iany

approving this issue. Proceeds—For construction
Underwriter—May be determined by competi¬
bidders: Halsey, Stuart & Co.
IncCorp.; Morgan Stanley & Co.;
Kuhn, Loeb & Co. and Eastman Dillon, Union Securities

Natural Gas Co.

Northern

Public Service Co.
Oct. 8 it

-

bank

reported company plans to finance its

July 19 it was

Offshore Gathering Corp.. Houston, Texas

1955, David C. Bintliff, Pres., announced com¬
has filed an application with the Federal Power
Commission for a certificate of necessity to build a
864-mile submarine gas pipeline off-shore the coast of
Louisiana from the Sabine River to the Gulf Coast of
Mississippi.

ing system will cost

It is estimated that this gather¬

approximately $150,000,000.

of financing has not yet been determined,

Type

but tentative

plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock). Underwriter—Salomon Bros. & Hutzler,
New York.

:

"

■

Sept.

Securities

Commission

to

issue

sell in the State of Oklahoma $zo,uuo,uuo

oi

iu>

sell

and

capital

stock

($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬
sidiaries.

Business—A

holding

Pacific Northwest

Aug. 13 it
of

was

stock to the

common

that arrangements
up

Power Co.

reported company plans to sell about $32,-

to $60,000,000

are

on a

organizing companies and

expected to

revolving bank loan which will be

mated

cost of

new

project to cost

in¬
pav,

an

esti¬

Fort Lee, N. J.
President, announced

that

power

$217,400,000.

Palisades Amusement Park,

Aug. 21, Irving

Rosenthal,

company plans to purchase another amusement park and
merge the two and then sell stock to public.
Pan Cuba Oil & Metals
Corp. (Del.)
April 9, Walter E.
Seibert, President, announced

company will

file

soon

that

a

Y.

.

Pennsylvania
sept. 12 it
sell

was

$6,000,000

1°

he

Electric

announced
of

first

determined

by

Gas

was

approving

Dealer-Manager

Proceeds—To

stock.

mon

plans to issue and
bonds, Underwriter—
competitive bidding.
Probable

.

expansion

ket

Jan. 30 it

However, the secondary

market

expected to do much in the
interval,
particularly since the
volume
of
business
borrowings

circum¬
stances, say observers, it is diffi¬
cult to anticipate any turnabout in
the

isheavy

.

U.

In - the

Eastern

Transmission

Corp. (12/10-21)
plans to issue and sell, subject
conditions, $40,000,000 of debentures due 1976.

1

it

announced public
of $60,000,000 of
common stock

29,

States

H.

E.

Rubber Co.

Jr., Chairman, stated that
issuance of convertible 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 thjrt, if
convertible debentures are
issued, they will be offered
rata to

pro

Loeb

&

common

Nov.

16,

market.

its

if

holders

holders

WmJI

" ^ recognized that the

Prohahi
of

3

ably

Walt Disney
Publications, Burbank, Calif.
2 it was announced the
company now proposes to
offer to its common stockholders the
right to subscribe
for 186.500 additional shares of common stock
(par $2.50)
at the rate of

(with
for

one

In

near

ther

nan* Mil1 be
ot

t^e

group

the

remaining

year and the govern¬




which

shares

Consolidated Edison Co. s $40

some corporate fi- dicating

\through
b

The

cleaned/
had

the
But

had
been
dealers generally

"pot"

bonds available.

of stock
Other

..Public

—

Proceeds

—

new

is

Service

slated

bol¬

the

of

Washington Gas Light Co.
June

7

it

proposed

announced

was

30-year bonds.
to

company

proposes

to finance

construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and temporary bank
borrowings.
Underwriter
The First Boston Corp., New
York; and
Johnston, Lemon & Co., Washington, D. C.
new

cost about

•

Brothers Transportation Co.
(11/20)
5, it was announced public offering of an issue of
619,776 shares of class A common stock (par $1) is
planned. Price—$7.50 per share. Proceeds—To selling

stockholders.

Underwriters—Cruttenden & Co., Chicago,
111., The First Trust Co. of Lincoln, Neb.; and WachobBender Corp., Omaha, Neb.
,

finance

construction, with
lined up for the race.

10 shares held

new

three groups
Two

Watson

Nov.

fair-sized

ment trust issues

railway
are

up

set

for

for bids,
t

with

Louisville

&

Nashville

^

of¬

company

sue

is¬

in quite a spell takes the form

Books

&

Gas

closed

on

Monday

operation, were not
immediately.

a

Richards

but

He

was

With Francis I. Du Pont
(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.—

Charles N. Alexander has become
affiliated with Francis
&

I. du

Pont

Co., 317 Montgomery Street. He

formerly with Walston & Co.,

Inc.

Joseph A. Ryan

the

New

Joseph

each

South

Company, Inc., of California.

avail¬

for

621

Angeles Stock Exchange.

Funds will be

share

the staff of

Co.,

previously with Columbia Securi¬
ties

Nov.

one

&

Spring Street, members of the Los

Shareholders received the right
to subscribe for the new stock in
of

date

Joins Hill Richards

Quaile has joined

Hill

able

ratio

record

LOS ANGELES, Calif.-pRichard
T.

open

liquidate bank loans and

the

on

offering.

(Special to The Financial Chronicle)

complete final figures, due to the
enormous scope and complexity of
the

the

equip¬

was

Tap

Electric

to

per

loans and

—

For every share subscribed for
through exer¬
primary and secondary rights, the stockholders
would receive a further right to purchase until Nov.
30,
1957, one additional share at $22.

.

record

of

approve

on

bank

others.

cise

Probably

to

is

they hold.

Issues

Price—$20

short-term

working

shares held

seven

privilege).

To retire

capital.
Underwriter
None.
However,
Atlas Corp., which owns about 17% of the common stock
outstanding, will subscribe for any stock not taken by

Underwriter—To be*

bids on
Wednesday for its $50 million of
Corp.

used
.

share for each

new

oversubscription

an

share.

the

brought out
mil¬
lion of 30-year first and refunding
monetary policy 4V4S about a fortnight ago, an¬
term- Naturally nounced closing of the books, in¬

election this week
removed any likelihood

change

if

Underwriter—Kuhn,

Offering—Expected by 1958.

Oct.

of $8 million of
15-year subor¬
plan the day before. The offering
dinated debentures to be offered
expansion iwould be in the ratio of one new
for San Jacinto Petroleum Co.
share for each 12 held.
in industry is to continue, corpo¬
miir>v!e*
ent *nterests cannot find rations must obtain a portion of
Another Big Success
Meantime, bankers underwrit¬
lonv
ge^ exc*ted about as they the required funds in the money
Officials of American Telephone
for
rr the Picture shaping up market and must be prepared to ing the Sinclair Oil Corp's offer¬
$170.6 million
fcLln b?lance of the year- pay the going rate. Taking the tax ing of debentures to of subordi¬ & Telegraph Co., have announced
nated
that firm's that its offering of 5.7 million
of pro ■!,'
course, the reelection angle into consideration the firm¬ holders of record Nov. 14 are pre¬
shares
of
$100
par
stock,
via
othor ♦
nt Eiser|hower for an- ing of money rates has not, it is
pared to
open
books.
Holders "rights," to stockholders will go
news
Was reSarded as good pointed out, hit borrowers as would be entitled to subscribe for down as one of its most successful
severely as might seem indicated. $100 of debentures for each nine ventures.
money

Nevertheless,

stockholders.

Co., New York.

fering $7.60 million of such cer¬
One of these is
tificates and Chesapeake & Ohio's
Band's
pros¬
$7.8 million equipment offer.
pective offering of a million new
The first new oil
to

con¬

Humphreys,

Manhattan

shares

offering is expected late
30-year debentures and

in units. Proceeds—For

program.
Underwriters—Lehman Brothers (in
S.) and Nesbitt, Thomson & Co. (in Canada).

proportions.

Chase

Underwriter—Dillon,

Inc., New York.

was

United

-

stered
by two
unusually large
"rights" offerings which will swell
the total for the period to respect¬

able

•

announced

was

December

June

com¬

of California

calendar

week's

Next

•

struction

plans long-

"Rights" Offerings
i

funds.

it

$30,000,000 of

reported company may in the Fall offer

probably will be in the mar¬

for

in

Eastman Dil¬

additional

Underwriter

Gas Co.

'<•■'>!

•

additional

—

$15,000,000 of first mortgage bonds.

is not

still

was

..••••

* Trans-Canada Pipe Line, Ltd.
Nov.

redeem preferred stocks and

etc.

program,

Southern Counties

-

company

ment

—

company

Blair & Co. Incorporated, New York.

Co.

9

Read & Co.

Co.

debt financing and/or issuance of

term

•

.<

—

Proceeds—For expansion program.

Francisco

Seiberling Rubber Co.
10 it was reported that the

for

mortgage

Texas
Oct.

to market

:

<

proposed

Louis-San

Co.

recently authorized by the di¬
rectors, will provide the company with the additional
working capital it will require for further expansion.

announced stockholders will vote Nov. 14
a

Service

company plans to issqe^ and
March, 1957, $5,000,000 of first mort¬

Bank of Tacoma

Sept.

..

.

Underwriter—To

lon, Union Securities & Co., New York. Exchange Agent
—The Chase Manhattan Bank, New York.

registration statement with the
preparatory to an equity offering planned to take
Place later this
year.
Business—To explore, drill and
operate oil, gas and mineral
properties, in the United
states, Cuba and Canada. Office—120 Broadway, New

York, N.

&

or

Texam Oil Corp., San
Antonio, Texas
Oct.- 1 it was announced that the
1,000,000
shares of common
stock,

was

1956, unless extended.

SEC

February

Underwriter—Dillon, Read &

construction.

new

Public

announced

.

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
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¬
ferred stock, series A, on the basis of $100 of deben¬
tures, one-quarter share'of'common stock and unpaid
dividends of $2.50 per preferred share in exchange for
each 5% preferred share. The oliei will expire on Dec. 31,

be made to borrow

reduced through the sale of bonds to institutional
vestors as well as the general public. Proceeds—To
in part, for

for

Service Electric

18 it

St.

was

Co., New York.:

offering, of 25,000 additional
shares of new capital .stock on the basis of one new
share for each three shares held.
Price—$30 per share.
Proceeds—To increase capital and surplus.

-None.

it

gage bonds and to offer to stockholders
292,000 additional
shares of common stock on a l-for-14 basis. Proceeds—
For construction program.

1,000,000

Oct. 18 it
on

7

sell in

of Colorado

Puget Sound National

Underwriter

company.

Southwestern

Aug.

announced company plans to issue and
additional shares of common stock (no
par) early in December. Proceeds—To repay bank Joans
and for new construction.
Underwriters—Morgan Stan¬
ley & Co., Drexel & Co., and Glore, Forgan & Co.

.

Corp., Oklahoma City, Okla..
July 26 it was announced company has been authorized
by the Oklahoma

loans and

Public

Oklahoma

Goldman, Sachs & Co. (jointly); Blyth & Co.,
Kidder, Peabody & Co. (jointly); Morgan

Stanley & Co.

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
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc;; Blyth & Co., Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities
& Co.
(jointly). Offering postponed.

pany

and

was

Expected to be received early in 1957.

Nov. 18,

and

Inc.

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-

Inc.

the State of

Inc.

be determined by competitive

construction program (costing about $40,000,000)
through issuance of debentures and treasury funds in
latter part of year. Underwriter—Probably Blyth & Co.,
1956

>

rities &

reported company plans the issue and sale
of $30,000,000 first mortgage bonds. Proceeds—To
repay

*

''

•...

..

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
Co.; Equitable Securities Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.

year

its stockholders rights to subscribe for
540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
per share.

bidding. Probable
The First Boston

Co.'(jointly).

next

company

Co. will offer to

nroeram

&

determined

the

Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric

vote on

tive

that

to

Underwriter—The First Boston Corp., New York.

Earle J.

17

indicated

was

consideration

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
borrowing, convertible debentures or straight deben¬

Hutzler
n t

give

41

determined

Beane, Eastman Dillon, Union Securities &
White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.

York State

mpw

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
&

Co. and

Salomon Bros. & Hutzler.

•

Co. Inc.

Stuart &

Fenner

(2005)

1

A.

Ryan passed away
of 52. He was

at the age

President of Ryan,
York.

Hall & Co.. of

f
42

The following statistical

Indications of Current

latest week

Business Activity

week

or

or

AMERICAN

month ended

Previous

Month

Week

Week

Ago

oU

gallons each)

42

stills—daily average

to

runs

Gasoline

.Nov. 11

(bbls.)

Oct. 26
Oct. 26

1

§2,476,000

♦2,493,000

output

Distillate

fuel oil output

Residual fuel oil output

of

2,404,000

2,483,000

6,749,500

7,044,100

6,998,200
n,670,000

6,997,350

7,530,000

7,912,000

7,476,000

25,931,000

25,658,000

27,093,000

27,075,000

Oct. 26

2,680,000

2,772,000
11,979,000

2,484,000

2,050,000

12,389,000

12,744,000

—Oct. 26

(bbls.).
(bbls.)

7,742,000

7,742,000

J7,622,000

171,985,000
34,518,000

33,929,000

33,817,000

156,851,000

155,288,000

150,367,000

Residual fuel oil (bbls.) at

.Oct. 26

47,493,000

47,715,000

47,499,000

Oct. 27
(no. of cars)—Oct. 27

816,803

828,741

831,438

CONSTRUCTION

173,087,000

174,720,000

151,607,000

667,997

676,559

692,324

—Nov.

1

$350,139,000

$550,482,000

$491,008,000

♦$49,200

$44,300
11,900

$49,400
•

12,800

,—-

"12,800

23,800

23,800

.

23,300

♦$85,800

$79,600

<ov.

1

165,918,00

419,790,000

245,050,000

1

184,221,000

130,692,000

245,958,000

Nov.

1

166,045,000

99,146,000

199,356,000

18,176,000

31,546,000

46,602,000

18,684,000

.Oct. 27

10,440,000

♦10,540,000

10,510,000

9,991,000

.Oct. 27

642,000

692,000

656,000

129

130

126

RE¬

SERIES—Esti¬
term

29:

.

credit,

,

$40,074

i.u___—

goods——.—

consumer

$36,169

30,644

27,702

14,533

-

$39,878

30,707

s

.__.ud.-i.i_—;—

—

14,530

13,075

-

credit

——

-

-

7,093

1,758

1

•

——.—

payment loans———
Charge accounts
——:——

Single

•

1,625
6,043

9,234

■.

3,361

•

6,959

1,734
6,887

6,919
9,367

—

Non-instalment

-

7,497

——

and modernization loans—•

505,000

128

Sept.

Personal loans

96,869,000

1

FEDERAL

credit——

credit

Automobile

115,553,000

.Nov.

THE

OF

intermediate

of

as

consumer

Instalment

690,372

lov.

OUTSTANDING—BOARD

and

short

millions

Total

$394,011,000
278,458,000

municipal...

and

1——
1—

SYSTEM—REVISED

mated

"

State

$167,343,000

dollars):

of

GOVERNORS

OF

Other

construction

Public

$181,284,000

August

...

Repairs

construction

Private

of

SERVE

ENGINEERING

construction

S.

U.

Month

CONSUMER CREDIT

NEWS-RECORD:
Total

Ago

COM¬

$86,000

in

—

—

Retail

•*

829,648

ENGINEERING

SERIES

(millions

46,299,000

CIVIL

OF

Wholesale

15.1,566,000

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections

DEPT.

NEW

$183,819,000

.—

—

Manufacturing

36,436,000

Oct. 26

(bbls.) at

(bbls.) at

thousands)...

(in

INVENTORIES

7,811,000

— Qpt. 26
—Oct. 26

unfinished gasoline

and

Year

*

Distillate fuel oil (bbls.) at

Finished

•

Month

OF

11,250,000

Stocks at refineries, bulk terminals, in transit, in pipe lines—
Kerosene

August

MERCE

Oct. 26

(bbls.).

Kerosene

GOVERNORS

OF

DEBTS—BOARD

BANK

BUSINESS

(bbls.)

output

Previous

Month

99.6

100.9

"101.3

§100.6

of that date;

are as

THE FEDERAL RESERVE SYSTEM—Month

output—dally average (bbls. of
—Oct. 26

condensate

and

of quotations,

cases

either for the

are

Latest

AMERICAN PETROLEUM INSTITUTE:
Crude

in

or,

Ago

.Nov. 11

operations (percent of capacity).
Equivalent to—
Steel Ingots and castings (net tons)
steel

production and other figures for thi

cover

Dates shown in first column

that date,

on

Thursday, November 8, 19

.,.

Year

INSTITUTE:

STEEL

AND

IRON

Indicated

tabulations

month available.1

Latest

Crude

Financial Chronicle

The Commercial and

(2006)

•

8,467

3,295

3,780

2,776

3,696

3,586

; 2,243

2,105

'

Federal

COAL OUTPUT

(U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

anthracite

Pennsylvania

(tons)

credit

CONSUMER PRICE
"'-•'

Month

of

SYSTEM—11*47-49 AVERAGE

—

100

Electric

(in 000 kwh.)

output

1947-49=100—

—

117.1

Food

home—

at

Nov.

BRAD STREET,
tot

3

11,487,000

11,391,000

bakery products—;——
.-_
Meats, poultry and fish_—
Dairy products
1——___

10,853,000

11,342,000

and

-'

&

DUN

—

INC

271

Nov.

267

253

\

Other

steel

(per lb.).

(E. A

5.622c

5.622c

5.622c

5.174c

>ct. 30

$63.04

$63.04

$63.04

$59.09

.

Jet. 30

.

Gas

101.3

$57.50

$56.83

$57.33

$44.50

Apparel

tin

Louis)

(St.

Zinc

38.575c

34.350c

33.950c

.Oct. 31

112.250c

*Oct. 31

at_

105;625c

16.000c

-

36.600c

44.450C

Women's

96.250c

corporate

Other

15.800c

15.800c

15.300c

13.500c

13.500c

6

98.25

4ov.i 6

101.47

.

Aa

.

A

.

40V.-:

6

Nov.

.

.92.06

98.41

99.20

101.64

Railroad

98.41

93.08

•109.79

-

99.52.

107.62

93.82

-

93.08

102.80

MOODY'S

96.69

6

98.41

98.5T

.Nov.

6

99.52

99.68

—Nov.

6

3.28

3.26

6

3.86

3.65

3.80

97.00

98.09

107.98

100.16

-

3.29

6

3.66*

3.65

3.58

6

3.73

3.71

3.67

3.18

A

Nov.

6

4ov.

6

4.20

4.20

6

3.96

3.94

3.83

Nov.

6

3.85

3.84

3.79

Public

lov.

6

3.78

3.77

3.74

Industrials

—.Nov.

6

420.4

418.1

421.3

398.0

Group.

Group

3.85

3.78

3.30
•

■»

4.15

*:

3.58
-

Oct. 27

251,985

249,859

278,432

276,397

271,570

288,522

=

97

94

95

EXCHANGE

sales

401,797

442,344

410,178

All

goods

__:

—,

—

2

109.49

109.49

109.15

13,276,000'

number

'

IJFE

manufacturing
goods ;
goods

INSURANCE

OF

LIFE

(000's

4

*5,695,000

-5,753,000

107.3

SPECIALISTS

AND

ON

EXCHANGE

SECURITIES

(customers'

'

:

—

N,

Y.

_

9,750,000

total gales

PURCHASERS—INSTITUTEd

INSURANCE—Month

omitted):

U

August,;.

of

'

1,478,649

1,214,066

1,261,044

$81,390,885

$70,236,768

$65,732,153

690,029

.Oct. 13

•

1,160,000

$34,093,982

$45,227,452

$45,892,432
234,960

170,200

1577590
479,170

1707200
764,100

234~960

2~6~9~790

551,120

479,500

TRANSACTIONS

373,320

560,790

420,140

7,453,500

10,680,240

10,073,690

Oct. 13

7,826,820

11,240,430

10,493,830

12,706,130

.

OF

Oct. 13

1,043,320

1,304,100

on

291,270

214,230

825,600

1,302, <20

1,021,780

1,012,580

1,593,990

1,236,010

226,110
1,658,590
1,884,700

220,420

322,220

280,780

454,440

1,448.960

.

Short sales

41,000

25,100

.Oct. 13

248,940

330,700

290,450

418,440

.Oct. 13

264,640

371,700

315,550

438,140

sales

off

Short
Other

.Oct. 13

Other

545,048

580,405

—

U.

8.

DEPT.

98,810

73.330

599,818

586,645

698,628

665,975

633,524

Oct. 13

1.627,892

2,316.228

2,165,285

431,080

318,660

1,527,982

2,233,238

1,898,875

2,643,324

1,814,432

2,664,318

2,217,535

2,956,364

♦26,158

27,229

$2,818,531

$2,848,115

$2,815,555

credit

•

33,478

S—II"

U.

U. S. Govt,

on

other collaterals-^-4

OF

UNITED

101,565,726
48,590

•100,587,883
.

i-:

84,481

,

370,620
"

221,159.683

210,014,933*
;_d

issues"

on

872,188

-

,

43.457

33,167

335,580

,

866,698

,

listed shares
listed bonds_______^

••

-

327,916

balances.;.!.*

2,224,551

2,229,618

976,695'
197.53 7,241
,

,

104,547.615
*

95.5"

2,233^556

STATES

COMMERCE)—Month

billions):*

and

interest

87.9

88.2

89.3

85.6

Oct. 30

102.6

103.1

104.9

Meats

Oct. 30

80.5

82.2

91.1

77.1

All commodities other than farm and foods

Oct. 30

123.0

123.0

122.6

118.7

for

rent?.l
income

ESTATE
OF

FINANCING
U.

S.

—

IN-

Insurance

;

Mutual

companies

;

"I
II
I_I

;

I

I

TREASURY

OF

Net

Net

U.

28.7

37,9

35.1

,

/

;

1

' 5.9

5 8

7.3

7.3
_

♦50.5
♦29.7

MARKET
AND

TRANSACTIONS

GUARANTEED

5.3
7.1

470

27.1
17.4

13.8

18.6

*309.4

293-8

$920,744

$851,024

$1,059,997

163,466

158,843

507,563

464,305

181,326

168,146

319,126

institutions—IIIIII"!

Total

RECT

56.5

30.4

37.8

BANK

banks

lending

213.4
92.li

30.6

IN

307,345

452,092

424,466

$2,544,317

Miscellaneous

$?08.7

NON-FARM
LOAN

companies
trust

and

95.9-"

312.9

/

HOME

.

50.9

51.0

*

*$324.3
224.0

.

60.3

29.9

98.8

^Includes 1,157,000 barrels of foreign crude runs.
{Based on new annual capacity of 128,363,000 tons
1, 1955 basis of 125,828,319 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan.

98.3

dividends^-

and

.

227.1

IIIII
_II_II

income

transfer payments
nonagricultural income

111.3

Oct. 30

contribution

income

Bank

•

$328.2 *. "

/

Ill—"II
special" in¬

i

savings
Individuals

products
Processed foods

J

BOARD—Month of August (000's
omitted):
Savings and loan associations
;

OF

115.2




free

in

Total

Total
REAL

-

115.0

1, 1956, as against Jan.

banks

—

labor

AREAS

114.9

♦Revised figure.

margin accounts—*
balances-;.

debit

industries

Personal

313,040

Oct. 30

of Jan.

$44,315

>

Sept.

.

(1947-49= 100):

commodities

Farm

of

income—4—

employees'

Other

2,951,275

286,450

Commodity Group—

as

personal

surance

566,294

537,212

Oct. 13

SERIES

83,770

453,442

Oct. 13

sales

Total sales

All

Less

566,425
67,230

Oct. 13

sales

—

364,152

.Oct. 13
.Oct. 13

sales

WHOLESALE PRICES, NEW
LABOR

15,700

.Oct. 13

sales

Total round-lot transactions for account of members—
Total purchases
Short

"

the floor—

Total sales

of

(in

Proprietors'

purchases

in

Government

19,700

Other

initiated

►$49,238

Wage ancl salary, receipts, dotal
dLI^_;C
Commodity producing industries_d_^_x.i—
Distributing industries ''
Service

the floor—

Total sales
Total

August

Total

1,930,410

186,980

13

Oct.

purchases

and

(DEPARTMENT

.Oct. 13

transactions

19^47

$49,422

customers.;-—:

borrowings
Member borrowings

of

.Oct. 13
.Oct. 13

Other

.*21,059

21,293

"

.Oct. 13

;

sales

Total sales
Total

hand

on

net

to

PERSONAL INCOME IN THE

MEM¬

purchases

Other transactions Initiated

carrying

Member

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
:h
Transactions of specialists in stocks in which registered—

$24,768

*$28,179

$28,129-

.u

I_

*

:

EXCHANGE—As

Member value- of

437,120
12,269,010

Other

firms

Market value

Oct. 13

ACCOUNT

$3,645,000

omitted):

Total of customers'

Oct. 13

FOR

'

SERIES—

;

;

STOCK

(000's

Cash

j

TRANSACTIONS

570.000

$4,251,000

;

dollars):-."^

of

„I

•

Totar customers'

(SHARES):

sales

Short sales

(millions

__i_ud

-

YORK

30

ON THE N. Y. STOCK

Other

Total

L

Credit extended

STOCK

517,000

27,493

Total

Member

MEMBERS

d.

503,000
d 931,000

i

-

Nondurables

NEW

Short sales.

ROUND-LOT

COMMERCEK NEW

August

269,790

157,590

Jet-13

.Oct. 13

SALES

$2,558,000

$2,817,000

.

526,000

::

Sales

AND ROUND-LOT

round-lot sales—

OF
of

Durables

10,181

.Jet. 13

STOCK

(DEPT.

1,064,837
$57,896,498

.Oct. 13

sales

Total sales

.<

-$2,858,000

—

x__^—_„u——
—

Month

1,075,018

4,857

912,203

dealers—

OF

.

8,822

879,614

.

ACCOUNT

917,060

6,038

683,991

^JctC.3

shares—Total sales

TOTAL ROUND-LOT

888,436

Oct. 13

-

by

973,024
$59,589,680

.Oct. 13

Round-lot purchases by dealers—
Number of shares

Total

4

,

_

—-

Industrial

Inventories—

Short sales

EXCHANGE

9,640,000
-7,279,000

,v

7',279,000

MANUFACTURER'S INVENTORIES AND SALES

—

Dollar value

FOR

16 919.000

-9.758,000
-

$4,544,000

Oct. 13

sales

short

Other

-158.6

17,037,000'

17,061,0001

'7,311,000.

—

COMMISSION:

purchases)—t

other sales

of

V108-1

r ♦lei.i

-

ODDSTOCK

(customers' sales)—

orders—Customers'

Customers'
Customers'

Number

7,612,008

;

♦107.1

;■

164.2

———_

Ordinary
'

Oct; 13

Round-lot sales

13,-365,000

♦7,555,000

!

of

Group

Odd-lot purchases by dealers

of

*13,250.000

7(548,000
5,728,000

-

indexes

Durable

107.15

"

Dollar value
Number

7,168,157

4

1

Nondurable

■

591,291

.Nov.

100

by dealers
shares

of

120.6

of

..

(production workers):——,

employees in manufacturing industries—

•

.

102

.>ct. 27

at end of period—

(tons)

DEALERS

Number

122.1

r

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF

Odd-lot

.108.7

"

jet. 27

activity

AVERAGE

LOT

128.2
116.6
-

'

284,924

(tons)

orders

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

240,275

Jet. 27

Orders received (tons)

Unfilled

Estimated

J**'

NATIONAL PAPERBOARD ASSOCIATION:

Percentage of

SERIES—Month

*.

manufacturing—u-

3.38

£*

Production

-

.

COMMODITY INDEX-

MOODY'S

3.86

133.3
107.9

),179,054

DEPT.

S.

(1947-49 Avge.=100)—
All manufacturing.u„u—___d
u
Payroll indexes r(1947-4> Average=100—All

3:22

—

Utilities

Employment

3.28

—

Group

Nondurable

'

:

Nov.

—

*

Baa

Railroad

PAYROLLS—U.

goods —;

'Durable

.

3.10

Nov.

91.0
125.3

115.8

,

120.3

v

..

166.9

118.6

122.7

_u__u

"

4oy.«

172.9

4

,108.4

.

I

k

r 428.5
.

120.5

.

I

_

(running bales)v—u_V—T—_*

All manufacturing

2.78

Aa

*.

:

'

.

118.1

.

91.5

"

.

134.0
-

u—_j.

AND

September:"
-

_i—L—.

—

LABOR—REVISED

OF

r

—

-

"128.6

118.7

99.5

124.8

92.0

.

—

16

EMPLOYMENT

109.06

Aaa

•s.

—

care
care

6ct;

of

As

106.21

99.36.
"

YIELD DAILY AVERAGE8r

BOND

;

98.1

COTTON GINNING (DEPT. OF COMMERCE^
}

3.14

Nov.

.

Group.

Government Bonds

S.

•"

6

_Nov.

Group

Utilities

Industrials Group

Average corporate

*»*

"

:

Reading and recreation.'—*—
Other goods and services—-—

111.25

101.31

100.65

98.25

Personal

107.80

102.80

Medical

.

96.28

.

'

Public

:*

apparel

105.8

;

126.0
-

104.6

107.7

99.6

—

119.8

105.5'

*...

*."103.6

123.4

.

J 173.Q

.

90.80

-

100.32

6
6

.Nov.

Baa

U.

90.45

6

Aaa

S

—

111.2
125.2

102.6

d

108.3

u_—__——______u

114.1

129.5

123.7

,»

13.000c

lov.

130.5

;

112.1

•'

'

girls'-

Transportation

15.800c

_

120.4

133.2

112.2

.103.3

u—

'

15.500c

13.500c

.Nov.

S. Government Bonds

122.2

106.5 :

and

16.000c

16.000c

MOODY'S BOND PRICES DAILY AVERAGES:

Average

110.2

113.9

.130.5

boys'-.:——————;

Footwear

103.500c

"

V.

—

—

:

U.

103.5

"V; 106.5

120.7

*

115.4

•

—c

and

42.700c

.Oct. 31

at.

operation

>

Men's

39.675c

.Oct. 31

Louis)

(East St.

35.700c

-Oct. 31

refinery
(New York) at.
(New York) at

Lead

fu
v*3

'

fuels

Household

1

.

.Oct. 31

reiinery

Export
Stralts

99.9

109.2

114.8

Housefurnishings., __taU.-ud-_-._-

;4

BL J. QUOTATIONS):

at
at_

Domestic

124.0

•

109.8

;

home—

at

electricity—
and fuel oil--—

and

Solid

,

,

**

i

vegetables-;.—.ii—_—_:

126.3

133.4

.Oct. 30

Scrap steel (per gross ton).

Lead

'V

foods

237

Electrolytic copper—

ir
kJ

and

111.6

*110.4

.

122.5

Pig iron (per gross ton)

METAL PRICES

§

Fruits

114.9
"

H3.1

111.8

126.6

-

IRON AGE COMPOSITE PRICES:
Finished

s

INDUSTRIAL)

AND

-16.8

111.7

—

—

(COMMERCIAL

FAILURES

-

113.1

Oct. 27

INSTITUTE:

ELECTRIC

INDEX

'

,

September:^"'

Cereals

RDISON

2,226

,—

INDEX—FEDERAL RESERVE

SALES

DEPARTMENT STORE

Service

.v:

$2,374,123

$8,437,350

$9,400,000

163.174
521.302
179.355
309,642
463,068

DI¬

SECURITIES

S. A.—Month of
September:

sales

purchase

♦Revised

HI

$11,820,500

Number 5584

!84

Volume

The Commercial and$Financial

...

Chronicle

(2007)

Samuel Franklin Adds

2

Continued from page

DIVIDEND

NOTICES

DIVIDEND

43

NOTICES

(Special to The Financial Chronicle)

LOS

The Security Hike Best
?

•

•

'erseas

part

of

.

.

the

the

imagination?"
•

Southwestern Inv. Oo.

travels right through to its
ial destination.
TMT is the only company with
,sseis in
operation using the
11-on roll-off "fishy-back" conDt
' although other shipping

The
to

its

warrant

of

Operating Equipment

Ferry and its three

holly-owned subsidiaries on last
owned eight and were oprating six roll-on, roll-off trailer
essels. Two are in the process
f being' converted . . . in addiion, the company owns 470
railers, 54 tractors and 35 trucks.

-ount

present, the main stay of
operations is three LSTs

T's

hich have been converted to the

oll-on, roll-off concept

and are
The LSTs havfe a

apacity of 55 trailers and' require
8 days for a round trip vogage
etween Jacksonville, Fla., Puerto
ico and the Virgin Islands.
The company has under con¬

traction, its-first of a fleets of
elf-propelled trailer ferry - ships.
The

hich

TMT

should

"Carib

be

ready
sometime

aiden voyage

ember ,(1956).

Ship"

rpose

in De-

\

;

The "Carib Queen" is a
ional defense

Queen'7
for her

"Special

essential

.

.

to: na~
and is the-first

.

oll-on, roll-off trailer ship to> be
ranted full Federal ship mort¬
age insurance.

$4.7

ompany

She will cost the

million

and. carry

Government-guaranteed
age of

$4.1 million.

mort¬

to

and

_

trailers, 97 automobiles,

lus 500

measured

argo

and

he will
f 40

2,000

be

men

;

bout 151/2
ueen" is
ax

tons

.

by

have

y

knots.

a

profit

of

$2

hulk

liquid,
a -crew

speed of
"Carib

$20;

by

a

1957hCUid
A

a

TMT

has

in operation early

have been

experimental

■

hf TMT's

more or

less

basis.

emonstrated that its
concept of

itni"nCejn iransP°rtation fills a
In
anc* *s in kiS demand.
MT'c cornparatively few years,
railr rf e-pt of roll"on'
affion
es for trans-ocean
as alrpS grown to a stature that
i

Tc_ommanded the attenand

nf n,

ome

o

f/' S- Government

and/ /!• nation's

leading fiwhich have

^idutions
ions to thL°r financial contribuerry, inc recent growth of ™T
ade

thpC°n?Fa^!y
cceleratpdef
n

now aPPears to be
?f a Period of

pansl°n of its

"as

over-

operations which should
er>t of
i

TMt'c
s

re-

Itc cons*derable enhanc^earmng

power.
accomplishments
_

has

Investment




FOREST

of

25$

J

Stock payable December 15, 1956,

'

to

share

per

of

business

A

1,
13,

Secretary

GUARANTEE

has

15,

been

1956,

declared

to

on

stockholders

declared,

Stock

and

in

Common

Company at the

rate

for each 20 shares outstanding,

1956.

15, ,1956,

business

No

cash

to

November

dividend

paid at this time

JXmemcan - Standard

mon

21,

will

be

the 5%

Com-

Stock dividend here announced.

:]

7 WILLIAM FEICK,

Jr.,

Treasurer

»

S

PREFERRED DIVIDEND

on

A
on

quarterly dividend of $1.75
Preferred

the

clared,

payable

stockholders

of

Stock

has

December
record

per

A
-

share

the

on

to

Common

payable

Stock

record

been

ers

on

11, 1956, to- stockhold¬
on

November

at

has

been

15,

Plaza, New York 20, N. Y.

IOWA SOUTHERN

1956

the

close

-

UTILITIES COMPANY

#
*

PACIFIC

•
•

FINANCE CORPORATION

:
DIVIDEND NOTICE

„

A

regular quarterly divldend of 50 cents per share
on the common stock
($10
par value), payable Dec.
1.1956, to stockholders of

quarterly dividends:

following regular

•
•

^

35% cents

share

per

on

44

cents

per

share

on

$1.76 Conv. Preferred Stock

■

QCF

INDUSTRIES

all dividends
to

•

its

•

the

on

per

Directors

*

on Oct.

31. 1956.

share on its
($15 par)

Stock

payable December 1, 1956,
EDWARD L.

SHUTTS,

vertible
of
•

A

B. c. Reynolds,

•

•

Secretary

•

President.

been

stock

Corporation has

declared

/December

1,

payable
1956, to

close of business Novem¬

RAILROAD

COMPANY

ber 15,

1956.

DIVIDEND

NATIONAL

NOTICE

UNION

Incorporated

IS

oi

27—40—4 ft—59—64—74

bonds

redemption will
become due
on
said redemption
date
and
will
be
redeemed on or after that
dat°
at
the office of ;the Trustee, the SECU¬
RITY NATIONAL BANK, Raleigh, North Car¬
olina, at par and accrued interest to redemption
date.
All such
bondst are required to be pre¬
sented
for
payment
and
redemption at sa:d
office
of
the
Trustee
on
Dec.
17,
1956.
on
"•hich
date
Interest
shall
cease
to
accrue
designated
and
payable

so

dividends:

share

on

the

AND .ROCKFISH

Corporation

has been declared
December

October

Lockey,
12,

Igjlfr

Vice

President

com¬

payable

ness

at

stockholders of record at

„

of

November 15, 1956.

Stock,

Common
December

15,

the

payable
1956

to

stockholders of record at

30, 1956.

the close

of business No¬

vember 15, 1956.

C. Allan Fee,

November

1,

1956

The Goodyear
,

Tire & Rubber Co.

By Arden e. Firestone,
Secretary
1

140th

DIVIDEND

DECLARATION

the close of busi¬

60 cents per share on

close of business Novem¬
ber

stockholders

to

f

OF PITTSBURGH PA.

December 20,

stock

1956
record

15, 1956, to

RMLROAD

COMPANY INCORPORATED

Forrest

stock

a

mon

stock of this

COMPANY

2 per cent common

dividend, payable in

common

Vice President and Secretary

ABERDEEN

FIRE INSURANCE

day declared the following

A dividend of $1.00 per

for

thereon.

By:

Common Dividend No. 148

HEREBY: GIVEN ithat, pursuant to

uie'Deed of 'Trusc aatcd as "of
July 1. 1945, betweefa-the undersigned and the
Security National Bank of Greensboro, Raleigh,
North Carolina, Trustee, there have been drawn
by lot for redemption^ and It is the intention
of
the
undersigned: to
pay
and
redeem
on
December
17,
1956, $6,000.00 principal amount
of the above described bonds, bearing Nos.

The

The Board of Directors to¬

Cent

The Board of Directors of this
pany.

today declared

dend of
on

the

a

com¬

cash divi¬

Fifty Cents (50<t)

a

share

capital stock. This cash divi¬

dend will be paid December 21,
1956 to stockholders af record at

the

close

of

business

December

3, 1956.

November 5, 1956

Treasurer
November 6. 1956

THE GREATEST NAME IN RUBBER

9

•

"••••••••••••••••ft*

$50.00 par

preferred

this

•

•
x

•

stockholders of record at '

piovistcns

+

(

.

value 5% cumulative con-

AT-

v

REDEMPTION NOTICE

cue

•

record Nov. 15, 1956, was
declared by the Board of

•

its
($30 par)

November 5, 1956

A dividend of 62/2$ per

SACRAMENTS

NOTICE

•

•

•

•

stockholders of record November 15,

1956.

Joins F. I. du Pont

-

cents

Common

Preferred Dividend No. 199

*

Calif.—Robert
W. Deming haSMJoined the staff of
-Francis I. du Pont & Co., 1200 J
Street.
**• -V' S..'

32

INCORPORATED

share

•'

First Mortg-ce ThrM'ftn-1 On»-G"'»-*er Per
Bonds Due^ July I, 1960

:
•

•

...

ftOCKFISH

•

•

•

•

Forty-

J^jjjancial Chronicle)

DIVIDEND NOTICE

•

J. Berberich

The Board of Directors has declared fhe

CITY, Mo. ^Richard

AND

13,

1956.
30 Rockefeller

of

Secretary

seventh Street/

ABERDEEN

No¬

Decem¬

of record at the close of

business

SANITARY CORPORATION
Frank

Sapp and Gerald D. Toms are
how affiliated with King Merritt

(Special to The

ber

on

1956. This divi¬

1,

dend is payable

J

stock of

AMERICAN RADIATOR & STANDARD

H.

?

share

per

de¬

close

With King Merritt

West

cents

vember

j

y. y

231

60

a

the capital

on

;

4%% Preferred Stock ($30 par)

Inc..

has declared

share

.

KANSAS

jersey)

new

in

The Board of Directors

Cash Dividend

[
J
J
J
\

November 21, 1956.

on

1

1,; 1956 to
the

at

December

stockholders of

;

J

November 7,1956.

on
November 21, 1956.
quarterly dividend of 35 cents per

declared,

■*

»

COMMON DIVIDEND

i

(incorporated

|

'

i

1
1

President

•

COMPANY

STANDARD OIL

I

»

stockholders of record at the

S

to stock¬
November 5, 1956.

on

Esso

•

pay-

December

mon

of

the fourth regu¬
for 1956,

as

dividend

WILLIAM H. DEATLY

|

com-

able

5
\

close

holders of record

'

»

of 1 share of Common Stock

President

Vice

Treasurer

quarter-annual

payable November 23, 1956

'

■

Senior

dividend of 30 cents

share designated

lar

'

payable

of the

a

per

!

of

No-

A special stock dividend, has been

.

clared
'

'

vember 21, 1956.

3

NOTICE

\

record at the close of business

j
J

management of Robert A.

.Co,

November

on

DIVIDEND

j
J
J
\

the

ber

..

&

business

Trustees of Title Guarantee
and Trust Company have de¬

!
J

per

Common Stock payable Decern-

i

12,

S. W. SKOWBO

branch

-7

quarterly dividend of $.60

share

J

the close

at

November

office at 119 IVJonona Avenue qn-

*

the

at

J
J

1956.

New Loewi Branch
a

record

•

the Com¬

on

holders of record

of business

Incorporated, has opened

of

•

Company
has been declared payable
December 1, 1956 to stock¬

Co.,

Co., both

stockholders

close of business November
21,1956.

:i

Stock of this

mon

whollv-owned

two

per

j

MADISON, Wis.—Loewi & Co.,

■-

of

0and Trust Company

|

20, N. Y.

share has been declared on the
"$4 Cumulative Preferred

J

PRODUCTS

York

A quarterly dividend of $1.00

J

H.

un¬

Texas corporations.

Dat-d:
on

N.

New

■

f

4in Texas in 1930.

National Life Insurance

-

December

on

1956 to stockholders of record at the

November 2, 1956

business

Cooper.

a

per

Common Stock of fhe

Company, payable

Sec.-Treas,

i THE FLINTKOTE COMPANY

A regular quarterly dividend

general

subsidiaries, Commer¬
Insurance Co., and Western

nin'18
improvised- equipemnt a+n
+llttle cash, TMT has

ion

and lised in its

organized

J^r.

the

on

&

Engineered Pulps end Papers

insurance

v.<

Worman

/. H.

regular quarterly dividend of 60c
share

Memphis, Tenn., October 30, 1956

j

and including
Co.;; Boettcher

Be¬

.

Bros.

Nibroc Towels—Bermico Pipe

Bernet & Hick¬

addition to being engaged dn
the.financing business, both in its
own
name
_and,. through whollyowned finance. subsidiaries,
the

estimated,

earnings bedepreciation to

wjnd $12 million.-"
np£vf'rst,three years
P
ations
an

DIVERSIFIED

midnight,

In

annual net

ia*es an(^

of

lEKe First Trust Co.

Southwestern

cial

The Board of Directors has declared

NOTICES

BERLIN,

warrants shall

borrowing! from banks

proposed expansion
program
for the
addition
of
15

S,yessels'. U is.
md hft

Salomon

COMPANY

Austljjf Hart & Parvin.
net
proc^&ds from the sale

company

of

as

1956.

GEORGE SELLERS,

der the company's .lines of credit.
was

137th Common Dividend

1956.

business, but hiSy be initially ap¬
plied to the retirement of short-

"•

DAYTON, OHIO

Corporation,

stockholders of record

to

November 13,

Sons^

BROWN

(Special to The Financial Chronicle)

that

with

of the preferred stock will be used
to increase working capital of the

term

the

FRANCISCO, Calif.—Wil¬
Hildeburn, Jr. is now as¬

DIVIDEND

coast and

company

of

December 10, 1956,

on

TITLE

share

Beecroft, Cole.:;&
& Co.;
Dewar,Robertson & Pan-

hog

rm"

Schneider^

N£ji,

year

panged for the acquisition of a
ister ship for the
"Carib Queen"
n

anck~as

1966/^fiibh

man, Inc. and
of
Lincoln,

The

payable

Hutzler, Russ Building.

/fij
The
offering was underwritten
by a group of glider writers head¬

earn a pre-

million

SAN

expire.

ed

Stock

mon

AND LIGHT COMPANY

With Salomon Bros.

share;, thereafter through
Nov.
30,
1962/ $18 per share;
thereafter through Nov. 30,
1964,
$19; thereafter-through Nov. 30,

1966,

THE DAYTON POWER

quarterly dividend of
37/2C per share on the Com¬
a

(Special to The Financial Chronicle)

including Nov. 30, 1958;
through Nov. 30, 1960,

Nov. 30,

Company

close

per

.The

.-.

expected to

It

of

of

manned

her owners.
is reported

or

tons

one

clared

Mr.

'

office of A. G. Edwards &

thereafter

"TMT Carib Queen" will
carry
2 loaded

purchase

■0*

E. L. Bruce

stock at $16 per share

common

.

.

to

0-

Dividend Notice

215

Humphries
formerly manager of the local

sociated

$17

60.

owed by tugs.

Humphries.

liam L.

a

Co.,

FT. SMITH, Ark.—Reinholdt &
Gardner have opened a branch of¬
fice at 22-24 North Seventh
St.,
under the management of Norman
was

stock at par ($20 per
share), plus Accrued dividends.
Each preferred share has attached
i

&

The Board of Directors has de¬

offered
stockholders the

common

Franklin

Reinholdt Gardner Branch

recently

company

B.

Seventh Street.

preferred

are

[Ck" operations

At

West

right to subscribe for 68,323 shares
of 5%% cumulative
sinking fund

.

planning "fishy...
and about
applications are in to build
ishy-back" type vessels. ... It
,pears unlikely that any of these
mpanies will be able to initiate
ishy - back"
operations before

Samuel

Offering Underwritten

rg0

TMT Trailer

*'

have become affiliated with

mons

D.

trailer

mpanies

staggers

from the

served by TMT. The
picking up the

area

teinal

been

TMT's probable growth in the
three to five years

.

next

send goods to

goods

receive

have

tees, and the t^actical assurance
of obtaining
necessary funds for
its ambitious expansion
program
from
large mstitutional lenders

about 50% more cargo a
par than conventional freighters
comparable capacity.
Through interchange agreements
ith various motor freight lines,

or

capitalisation

Npw with the sup¬
port of U. S. Government guaran¬

1Try

shipper, in
any
nited states can

J.

tremendous.

ship, and can

cargo

type

•

14 round trips for

mpared with
r

small

miles each a

000

F 2

ANGELES, Calif.—Martin
Bethell, Kenneth Cowan, James
Hilbe, and Franklin H. Sim¬

B.

,**

I"

Financial Chronicle... Thursday, November

The Commercial and
44

8

195

(2008)

n

■-

vast army of

BUSINESS BUZZ

"t

r-

.7

Finally,

A

Behind-the-Scene Interpretation
from tbe Nation's

Capital

*

ad

I

[This column is intended to-fd
fleet the "behind the scene" inted
pretation from the nation's

Capita

and may or may not

the "Chronicle's"

military expendi¬
tures
plus
foreign aid, both
military and economic.
Department

WASHINGTON, D. C.—In the

them¬

results

election

national

there is no suggestion of

selves

change in store in the govern¬
mental climate affecting busi¬

which will amount to

central fact about the elec-

one

sonal

popularity

Adlai

with

Stevenson.

This

is

not

all

about

at

likely

this

to

Democrats

seemed

writing

estab¬

election

win

States

-

the

Republicans

through

be

'5

would

than

be

Republican

a

Two

majority.

narrow

new

organization

line "of

I'*!

€
>*

the

liberalism.

party

appraised

that

universally

If the Pres¬

than the President.

line

ident's

from the President s personality,

:

[:>
r «*»

Duff

Senator

as

So

far

is

Congress

as

con¬

can

Connecticut,

of

Bush

Lib¬

of the

of

while

Michigan

carried

the

state.

didate

a

If

all

of

had

by

GOP

Congress

with

lend programs would have been
invincible.
If
anything, Con-

appear

of

did

not

,

gen- 1

1

-

things hoped for

is that world events may cause
the President to alter

some

as¬

pects of foreign policy.

Superficially it would seem
the genuinely world-shak¬
ing events abroad of the last

that

few weeks would command the

Government

States

to

of

make

the

United

drastic

blow to the United

Then

of course, dominate the Ameri¬
economy.

government

rectly

in

will

the

$72 billion.

This

year

disburse

call

came

Digitized for will consist of U. 5.
FRASER


Poland

of

France

"Collective Security"
The

of

Britain

and

the

over

gives

aggression,

as¬

1941

since

excuse

to

Club.

.

The

provides

j

herited

this

that

excuse

policy

means of
restraining the advance of Rus¬

should

sian

and

imperialism.

there

is

seem

offer

to

-

a
no

would

supposed to

be

all

an

for

one

and

one

for all endeavor

the nations of the "free

among

it

world" to unite in
pose

common

pur¬

to erect a wall against an

Whether

aggressor.

Many

death

States with

even

......

who

man

a

rity

not

off

fell

skeptic

a

-

..

was

collective

this

the British and
jFranch pulled the United States
back from punishing the aggres- j
;

chimera

sion

against

China

Red

.' Korea.

,

.

However, with the decision of
Britain and France to take over

the Suez Canal
tion

and

without

the

letting

by military

U.

S.

so

ac¬

much

as

Government

which

is

to

be

dicting

for

avoiding pre¬
diminution of world

reason

a

spending and vast'm i 1 i t a r y
spending, is that so many people |
have come-to enjoy it.
News
reporters,
for
instance,
who
earned

never

in

•

more

than

$6,000

private employment love be¬

ing propagandists
abroad
on
salaries, plus representation al¬

Conference.

'

•

V

April 21-23, 1957
Texas

/

for

a

Hun¬

Poland and

happened

has

does

in
not

Hotel.

that

this

whole

retinue of servants.,

a

vast

foreign

laughing off of Rus¬

military

_

•

*

(Hot Springs,

Nov. 3-6, 1957

is geared
outlay for military and
spending, and so is a

Annual

the Homestead.
Oct.

3,

29-Nov.

1958

Springs. Colo.)

real¬

perspective.
Poland and
Hungary, particularly the latter,
have demonstrated the ancient
that

pened

people

do

those

not

countries

colonies, sometimes

conqueror.

Assj

TRADING MARKETS

reliable

The

for

Com-j

Mills
Envelope

Engineering

National Co.

Carl Marks

Rus¬

FOREIGN

SECURITIES

SO BROAD STREET
TEL.

•

&

Ho. Inc.

SPECIALISTS

NEW TORE 4,

HANOVER 2-0050

N. Y

TELETYPE NY 1-971

the

Riverside Cement

Sightmaster Corp-

LE8NER & CO.
Investment

10 Post Office

demonstration

exists even if the might of Rus-

Botany Mills
Campbell Co.
Fashion Park

Morgan

called

di¬

armies

Traders

Convention

Annual

Indian Head

like

What hap¬

two

also demonstrates that the

duce

(Coloraij

-

United States

serving the

police state.
in

ciation

A. S.

ized

truth

Va

Traders Assj
Convention

National Security

ciatiorl

power.

might be viewed in a more

& y.
im

;i-'

Securities

Square,

Telephone
'-""Z"1 t

|D.

H. Ell

jeretley,
3oodbody
Dscar Gr
Hamlin

Hardy

|lra

<5

&

Haup

[series A,|

r

The entire economy
to

It only
indicates
the
possibility
that
Russian military capabilities

sian

„

the Broadmoor.

observers

Cowen &

[Co. and

of
Investmen [p. 1897.
Association
annu^
at the Statler Hiltc

plete with

a

Baker, W

|Bateman,

Air Pi

Group

Bankers
meeting

action''

advance, and
stultifying "collective
through what is droliy
called the "United Nations/' it
would appear to clear-headed

&

,

Associatiol
Credf [ration hi

(Dallas, Tex.)

National Security

in

Abraham

■Auchinclc

11th National Jnstalment

lowances of $12,000 per annum,
with elegant apartments com¬

about it

Allen & Co

_JBaird

See als

American; Bankers

secu¬

.

One

purchase fr

[the underv

(Chicago, 111.)

Mar. 18-20, 1957

op¬

something,

remains

seen.

when

of

philosophy,

however

Associatiol
Conferencf

Hotel.

of this

portunity, to strip off the whole
of

Respective

Administration

the

take advantage

overburden

(Chicago, III.)

(Baltimore, Md.)
Baltimore Security Traders
sociation
22nd
Annual Mid
Winter Dinner at the Souther

Up To Administration

will

Pal
Associal
the Barf

Jan. 18, 1957

insuperable

•UNDERV

Redpat
|Baker, Si

9th National Credit

it

that

trial,

rese

subordinate

J

Bankers

American

in¬

granted unb

[shares

(Philadelphia,

1957

Jan. 14-16, 1957

business.

tlncludesl

follows:

,...

clay Hotel.

security"

"collective

Under

given

be

Banker

the

at

tion annual meeting at

barrier.

feasible

oi rentals

[to warehoud

outstanding!
conventiol Reserved fo

annual

Philadelphia Securities

the

was

....

Jan., 10,

to

get out of

the "world leadership"

a

America

cocktail" party

entire

action

collective

of

bn Oct, 19,1
[interest per|

|in 1956.

7, 1956 (New York City)
Security Traders Association
New York annual meeting anj

National Administration its best

underlying

second,

kick

to

concept
restrain

stq

issJ

♦Note

AssociatioJ

at the Hollywood Beach Hote

,

plus

of

debe|

tlncludesl

Dec.

Hungary

and

decision

the

propaganda.)

,

"satellite" countries, do not pro¬

Defense

people, than the Reds.
the outlay- for United

is

foreign

downgrading

the

conve

bilities of

~

t

countries

two

those

Ball]

.;

Investment/Bankers

if

Russian power as a consequence
of

but

sian

Of this, $42 billion

of

rest

Americans

eign and military policy is that
so-called
"collective
security"

the

neighborhood of

the

the

that

Thus,

nicer

know

modern

can

the

domestic, lives on).

sumption of United States for¬

Hungary

What

gary.

Grand

(Hollywood

in further

altera¬

policy,

convince

to

States

'

weapons.

policy.

military

25-30, 1956
Beach, Fla.)

bureaucracy,

bureaucracies,

all

,fund

HWh Pi™

by insurant

Nov.

docu¬

declare

would

promi^

per year

4ft $

Hotel Commodore.

room,

*

j

a

the

in

dance

anything

international

like

of Amqri-

tyrants, even those

and

-

a

world

This

that the barbar¬
a generation

tion in its foreign and military

Foreign

and

and

as

have

delivering

of

capable

Poland and

President

•

imply that Russia has acquired
a
fleet of long range bombers

ing so-called liberal legislation
the

is

dollars

than

less

nuclear

in power. *
One of the

;

j

months,

several

servative Republicans may have
a little
less timidity in oppos¬

erally place his 100% followers

as

historical

an

United Nations as dead (even

does the government,
quarter of a billion

about

production of H bombs
approaches that of the United
States, and seemingly responsi¬
ble Air Force general officers

him then the President's spend-

for

\

that her

carried

Liberal

ment

adjust-,

one

would

-

won.

the

into

it

have become nearly invinci- \
Scientists report that Rus¬
sia turns out many times more
scientists than the United States, •
that she trains more engineers, ;

lost,

Eisenhower

aside,

than

its *

spend,

ble.

opposed

more

polish episodes, is that
perhaps unnecessary to

'

ago

Sen¬

Candidate-

candidates

ians

a

Labor

by

Labor, Lausche,
most

would

can¬

Democratic

opposed

and in Ohio

atorial

Kansas,

Gubernatorial

an

few

NATO

rate

now

weak¬

suggested by the Hunga-.

!

that

Russian

internal

per year

4ft %

(New York City)

Security Traders Association
and

Fundamentally

Russian Em¬

deta|

capital

(tSundry lonl

New York cocktail party, dinne

grace.

_

Eisenhower

In

[

the babble of voices in

last

the

popularity of Eisenhower. Wil¬
liams won handily as Governor

Republican

de

-

Britain.

Great

and

From

personal

enormous

its coup

Ither

Common

been given

chimera had finally

•

rian and

military

and

utterly

•

~

(Just as
ment

ruthless

Germans

ten billions

transport

Canada

eral Republican, only got in be¬
cause

nesses.

equipment, plus not inconsider¬
able
material
aid
also fropi

Prescott

the

the

back

some

German!

the

at

be overdoing it a bit?"

may

Hungarian revolt.

pire has grave

are

would

Dance

"

that the Reds

ever

war

beaten

Republican, Liberal

nor

Conservative trend.

conquered

the

that

for

Jiave established neither a Dem¬

or

so

were

we

has

today,

by

Thus the whole

primary, un- :

it may be doubted

cerned, the election appears to
ocratic

sia,

people of War II as to arouse
them to hostility." Nevertheless,
in

fir'#

armies

toward

McKay

the wayside.
*-

"Think

iebenture

lerest. T1

promij

Pa.i

Cricket Club.-

town

$4,000,000|

Gov]

Philadelphia Fourth Annua

Dinner

crushed

Russia, dominated by an

a

their

of

in Oredgon, Langlie in Washington, and
so on, would not have fallen by
Pennsylvania.

two

are

of

pleted—
public of!

Traders Association

Nov. 24, 1956

'

Even the Germans admit

did sell, then

definitely
men

Exchand

Stock

(Philadelphia,

1956

17,

Investment

taxation

"Invincibility" Analyzed
-

which
such

Nov.

many

the

salable, apart

were

of

meeting of Board of
ernors.
1
'

i

for the

unquenchable desire for imperialistic expansion either by
subversion or military conquest,
is militarily well-near invincible.
•
- '1. f

tremely Liberal Republicans is
that the GOP Party is weaker

[!b
'V

reason

.

utter
nonsense.
bragging of the ex¬

(New York City)

Association

derlying assumptions to U. S.
foreign and military policy.
First of these assumptions is

as

The favorite

Nov. 14, 1956

.

is

election

at

There

President Eisenhower's vic¬
tory statement that the "New
Republican Party" won a victory
the

Analysts
ventibn at the Waldorf Astoria

econ¬

Foreign Policy Basis

,

ha

year

level of taxation

a

personal
income
could be repealed.

stance, are specifically dedicated

against

of

of

Talmadge of Georgia
Lausche of Ohio, for in¬

Senators,
and

ACF-

(New York City)
Society of SecuritJ
Fourth regional con]

York

New

points is con¬
fiscatory. If only $4 to $5 bil¬
lion
of foreign aid alone were lr
abolished, as one economist has :
written, the confiscatory rates

substantive

less

and

nominal

the

also

which

here, their control is even more

Field

Nov. 8-9, 1956

total

this

Investment

Firms

is

It

houses,

both

winning

la

of $42 billion,

American

the

upon

existence

appeared

While the Democrats

*

ing

1151

.

omy.

in their own ranks.

dissenters

to

4

of the majority and the

rowness

;

single inflationary force operat¬

President's
of the nar¬

the

because

programs

f**

as

Inc.,

AllaJ
Kin]
Soutl

EVENTS

plant and equipment, is rated
beyond doubt the greatest

in

be without the power to

force

'

„

investment

business

later returns get one or

would

.

several billions larger than

should in
two vote
majorities in either house, they
if

economy.

Thus this item

the House and Senate, but even

—

with

now

Co.,

COMING

receipt of any foreign goods or
services in payment thereof,
of
material
from
the United

is

That

quip.

a

the

The

lished.

contest

is

&

Broadway.

goods which do not enter into
consumption.
The foreign aid
is a direct transfer without the

,

terrific victory in a per¬

a

ANGELES, Calif.

Jacobs

Merritt

$38

some

views.] '

represents payment for

billion,

Eisenhower

President

lion.
won

LOS
A.

expenditures,

partment military

There is only

and finance.

ness

coincide witl

own

Joins King Merritt

Overwhelmingly Defense De¬

a

elecUor

concept

security."

such of "collective

M. \J%At

w%A/

m

r

g] Y#llf

y%

xJL

last

found fault with the

•

•

I
rm-J

major

the

,nj

spending.

neither
in

candidate

on.

well-paid officials

who administer this

HUhbard 2-1990

Boston 9,

Ma

Teletype
BS o9