Full text of Commercial and Financial Chronicle : October 10, 1957, Vol. 186, No. 5680

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OVER-THE-COUNTER MARKET FEATURED IN THIS ISSUE
BUSINESS ADMINISTRATIOI
library

OCT 1 6 195

Volume

New York

Number 5680

186

EDITORIAL

As
I

The

We See It
because it

was

There

are

fear all too

many, we

many,

President

who have

bit of

sional

but another

investigations involving Mr. Hoffa

others in his union,

their

shoulders

all

sure

but

are

tolerance

inclined to shrug

what

they

are

■

characteristic of

too

well

than

one

...

ment and

organization in this country. Distressingly
often union members are disposed to pay slight
charges as have been leveled—
instances proved to the satisfaction

can

demand

union

some

page

ers

and workers

afforded

are

Under free

sort of financial

With employers competing for work¬
competing for jobs, each group of workContinued on page 36

provincialism that in many in¬

profitable entry, into the very same securities
Continued on page 22

REGISTRATION—Underwriters, dealers and investors in corporate
a

with the SEC and poten¬
starting on page 58.

complete picture of issues now registered
"Securities in Re gistration" Section,

tial undertakings in our

State, Municipal
and

U. S. Government,

STATE

Municipal

Securities
TELEPHONE:

Chips"
attitude shows

prevents an earlier, and perhaps highly

stances

enterprise workers

contend that such

Stale and

transactions is

live in places great stress on

Market for Future "Blue

worth.

trading in

originates, and where, by far, the

The world

Now

cannot set wages.

SECURITIES NOW IN

securities

DEALERS

and services

provide, balanced against the
numbers qualified to do the work.
(b)
Under free enterprise em¬
ployers
cannot
set wages.
They
must pay what the workers' services
are

Neil carothers

of whose lead-

Continued

goods

Over-the-Counter Market

rity purchases to those issues of well known cor¬
porations whose shares bask in the prestige and
publicity which are associated with listing on a
major stock exchange.
/ ■

they
•'

proud to present our semi¬

of the

sands of investors thus confine their entire secu¬

production., This
is determined by the

wage
for the

is presented.

public corporations and public figures are
continuously kept in the spotlight by virtuosi in
public relations. The same attitude seeips to have
arisen with respect to securities, and mai>y thou¬

what they earn in
proper

years

both

price increases. This
the economic facts
problem and make a

(a) Left alone, the industrial sys¬
automatically •pays I workers

for large sums of
money. Here is a union whose officers in some
instances at least have made it a practice to con¬
sort with criminals, and to use criminals for their
own union
purposes. Here is a union whose of¬
ficers have again and again found it convenient
to refuse to supply fact lest they incriminate
themselves. Here is

tem

pockets

we are

from S to 173

glamor and publicity. The American public is de¬
voted to "name" brands and "name" bands, and

union

First, the economic facts:

union whose members have evidently been the
victims, of
various
transactions
which
have
their

this

about

with

greatest dollar volume of security
negotiated on every business day.

again

review

all securities

recommendation.

man with the good of his country at
fail to look askance at all this. Here is

into

revised list?
unbroken cash dividend!
and

—that broad nationwide arena where

letter will present

reached

Once
annual

stocks

common

payment record running

and consequent

thoughtful
heart

the

and quality of securities in

markets

Breadth

Over-the-Counter Market discussed;

ing round of forced wage increases

part, though, we do not see how any

our

Enterprise Economist

leaders and managers of enterprise to halt the unceas-

ordinary man—at several of the teamsters'
bosses, and merely ask what the accused has in
the past been able to "get" for them.
For

Twice you have made a public appeal to labor

of the

By PR. IRA U. COBLEIGH

enterprise.

MY DEAR MR. PRESIDENT:

attention to such
some

labor

and in

pass, a

"tragic depres¬
sion." Well known economist insists such a step will
still permit wages to rise as they are voluntarily granted.
Offers data to show the political popularity of this, and
explains why present appeals to organized labor are in
vain.
Criticizes Secretary of Labor for indorsing the
union shop, and praises the President for not wanting
government wage determination. Points out, however,
"we have now an immeasurably worse control of wages
by a small group of men .." who are said to desire
wage increases without limit and control of govern¬

politics. Others doubtless have be¬

Copy

Starts and Never Ceases

letter to

wages as a measure

help halt price inflation and to prevent

disgusted with the disclosures of Congres¬

come

giant teamsters union

union

prohibiting strikes for higher

Market: Where Trading
5

law

election of this union leader to the office of President of the

open

Eisenhower, that Congress be asked to

Cents

Fabulous Over-the-Counter

of, Business Administration,

Lehigh University, recommends, in

all.

School

Emeritus

Dean

resulted in the

regarded the campaign which

By NEIL CAROTIIERS

expected, should

problem of the first rate importance to

President Eisenhower

again to remind all thoughtful men of

serve once
a

Open Letter to

triumph of Mr. Hoffa though expected, in

fact the

Price 40

7, N. Y., Thursday, October 10, 1957

AND

Public Housing Agency

MUNICIPAL

BONDS

HAnover 2-3700

Bonds and Notes

OUR

COPIES OF

"market review"

the

CHEMICAL

ARE

view

burnham

CORN EXCHANGE

monthly

Burnham and
MEMBERS

30 BROAD

ST.,N.Y.

15 BROAD
CABLE:

NEW YORK AMO

OF NEW YORK

Company

AMERICAN STOCK EXCHANGES

STREET, NEW YORK 5,

COBUBXHAM

•
Dl 4-1400
TELETYPE NT 1-22.2

N.Y.

Harris, Upham & C5
Members

120

Teletype: NY 1-708

Bond Dept.

Active

Net

Markets

New

York

Stock

offices

from

coast

bank

coasf

$175,000

Maintained

Chase Manhattan

Exchange

YORK 5

BROADWAY, NEW

„

Jo Dealers, Banks and Brokers

-investment

T. L.Watson &Co.
1832

ESTABLISHED

securities

Members

province of quebec

CANADIAN

of the

New York Stock

American

Stock

goutkw*4t

Exchange

Orders Executed

Canadian

Exchange

CANADIAN

NEW YORK 4, N. Y.

DIRECT

On All

Due

for California's

Debentures

December

DEPARTMENT

Price
•

96.25

^oidhwedt

COMPANY

BRIDGEPORT

•

PERTH AMBOY

Goodbody & Co.
^CW YORK

1 NORTH IA SALLE ST.
CHICAGO

MUNICIPAL BOND

WIPES TO MONTREAL AND TORONTO

115 BROADWAY

Economy

yield 4.55%

Doxunox Securities
Grporaxkhi

/EMBERS NEW YORK STOCK EXCHANGE

FIRST

Expanding

1981

Payable in United States Dollars

•

STREET

4V4%

Exchanges

Teletype NY 1-2270

25 BROAD

Municipal Bands

Commission

SECURITIES

Guaranteeing Quebec Hydro-Electric

Commission
'

DEPARTMENT

BOND

the

THE FIRST NATIONAL CITY BANK

DEPARTMENT

REQUEST

letter

BANK
BOND

AVAILABLE

NOW
ON

DEPARTMENT

Bank of Atttcrtca
NATIONAL

Exchange Place, New

Teletype NY 1-702-3

ASSOCIATION

York 5, N. Y

WHitehal] 4-8161

300 Montgomery

St., San Francisco,

Calif.

The Commercial and Financial Chronicle
2

...

Thursday, October 10, 1957

(1558)

The Security I

Brokers, Dealers only'

For Banks,

participate and give their reasons

"HANSEATIC"

Try

Because you can

sure

for favoring

MORTON A. CAYNE

Nationwide Wire System

there is

Mohawk Rubber Co.

manufac¬

Primary Markets in more

products are offered

turers whose

than 400 OTC Issues

expressly for the tire

replacement

business will this year

have record

sales and earn¬

the

Stock Exchange

American

reorganized in

BOSTON

•

CHICAGO

•

SAN FRANCISCO

Wires to Principal

Private

1938 with Mr.

R. E. Bloch as

Cities

Hvnamir*

STh
Bloch,

120

Exchange

BROADWAY, NEW YORK S

this

TEL. REctor 2-781S

Field

industry.

men

closely with tire recapping cus¬
tomers which has enabled Mothe

was

Arkansas

Helena,

Colorado.

Bank of Virginia

Increased

Alabama-Tennessee Natural
Gas Company

Colony Life Insurance Co.

that
^ ^

National^

Banking
System. Its
quarters have

the-

been

West
and Littleton,
/
.' •'

the

site

same

Chicago

the

loop (with ad¬
ditions) since

production of 20% in

shortly after
of

fire

the

accomplished since

1871, which
destroyed

operation of the plant at
Helena, Arkansas. This plant

automatic • equipment in
feet of space on
floor was acquired in early

the

plant

first

of the State of Arkansas

by Winthrop Rockefeller.

Opportunities Unlimited
our

Monthly

Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
This

is not

orders

for

offer or solicitation

any

tested

be heard

for

particular securities

It was
before

Supreme Court
validity of the

Arkansas

which

into being.

Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.
for

the

case

Commission

For Mohawk, the ven-

enabled the
company to double the production
of passenger tires, it has also pro¬
vided the advantage of being lo¬
cated in this fast growing and ex¬
panding Southwest. At a cost of
$1.5 million for land, building and
equipment, Mohawk attained full
production in May of this year.

ture

has

not

only

The company

will benefit with

the completion of the St. Lawrence

Seaway
seas

will route over¬
materials without inland

which

raw

a s

century.

offs

Annual

depreciation

bring the figure down to

WALL

STREET

NEW YORK 5, N. Y.

SUGAR
—

Refined

—

Liquid

Exports—Im ports—Fut urea

changed
name.

altered

or
In

has

1900

Net

sales

for

the

first

seven

ported

$11,413,000 compared to

$8,741,000 in the same period last
year. The per share equivalent is
$1.80 as against $1.49 while earn¬
ings of $2.62 were reported for
the full year of 1956. The second

the

soon

trusteed

was

holders.

its

1929,

All

stock

years

book value

Washington at one time or
periods of a year and
The bank initiated, in 19C6,
riiyicion system of officers to

more.

corporate

tv.o

the

serve

customers

This

which

per

assimilations

that

nothing

huHnpss

later,
share

Foreman

tho

were

was

of
are

customers

new

it's

your

smart

place

advertisement in

THE COMMERCIAL AND

FINANCIAL
Park

CHRONICLE

Place, New York 7

con¬
pay¬

much less

than

been

recent years,

many

and

they

conservatively stated always.

When

vestments

banks were fright¬
government bond in¬
after the depression,

First

the

ened

N. Q. B.

many

into

had

some

hence its great

recent

family

continuous

make

courage

While

years.

have

groups

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
18-Year Performance

35 Industrial

Stock9

been

for

are

POLDER ON

REQUEST

stockholders

rescue

This

years

for
few

small cash payment
was made
to former
a

stockholders.

securing

50% of admitted earnings in each

except

pa;d

time.

of.

institution,

time

same

National

basis,

one

the most useful tools in

cash dividend

Its

have

ments

by industry.

dynamic

the

servative.

First National
Co., and in
State
National

exchange

operation,
thp

Forgan has
this committee

death.

growth

Foreman.

had

its

from

his

commercial loans,

Bank.

stock

First

for

sion program.
As of Dec. 31,

common

Advisory
inception in

Board

Reserve

absorbed Union Trust

rent Assets of

never

banking law was changed per¬
mitting it to conduct these forms
of banking itself.
While First
Trust was in existence, its stock

1957, it was reported will
show the full effect of the expan¬

rent

the first and
of the Fed¬

was

Advertising

later heads of the bank, in¬
cluding the present incumbent.
Several vice-presidents of First
National of Chicago have served

Metropolitan National Bank.

Foreman

$6,489,312 and CurLiabilities of $2,848,884. The

In 1903 it

1931,

1956, Mohawk's

1925,

been succeeded on

but absorbed it when the National

months in 1957 were recently re¬

1913-4

nom-

absorbed

1S22

his

until

1897

from

Committee

Union National Bank and in 1902

financial condition disclosed CurDIgby 4-2727

eral

organized First Trust &
Savings Bank to do savings and
trust business in its own quarters,

export markets.

schooled

were

another for
National

half of

Haw

death

First

BS-630

continuous Chairman

charge-

may

York,

bank,

the

its books at about 5% of

for

Teletype

May of Guaranty Trust, both-:

foreign exchange at First National
of
Chicago.
James B.Forgan,.
President and later Chairman of

other

their true value.

••

Vanderlip.
and

Frank

York,

New

additions
to harmonize

the

Max

fees, contiguous
nearby, all of which are car¬
on

Telephone Richmond 2-2530

Fred I. Kent of Bankers Trust

site in

ried

CO., INC.

STREET, BOSTON 9, MASS.

head of National City Bank'

New

fee. Athe rest is non-purehaseable
public property) as well as con¬
and

1+GuSiitUa
cJ)<
ZERO COURT

local journal¬
assistant, who later be¬

his

came

same

freight charges and will also have
reduced costs
in shipments for

LAMB0RN & CO., Inc.

ist

with the initial modern structure.

siderable

/O
KELLER BROTHERS

took along a young

Later

Its ' generous

munity well, sending its late for¬
mer
President, Lyman J. Gage,
to Washington as Secretary of tne
Treasury, under McKinley.V Gage

replacement, since the turn

the

'"Retail Distribution

It has served the com¬

insurance.

which it built

have all been made

SECURITIES
"Trading Markets

pension^, plan is about 75 years
old, and-is being made ever more:
generous.
It4 gives free lunches
to all its employees, and free life

building,

MASSACHUSETTS

of its customers;

care

stockholders. *

and

occu¬

pied the
Wnitney

Alan

good

done more than

has

bank

This
take

the

law that brought the

IN JAPAN
Write

first

First

vaults.

Industrial

Development Commission, headed
the

nothing in

its

purchased under the auspices

LD 33

but

square

This

1956.

Lynchburg, Va.
Tele. LY 62

one

its

building^

then

having

Scott, Horner & Co.

Investment Bankers

amount' in savings

bank.

July 1

v_
Charter

iiviuu
holds

^
It

^
year.

West

110,000

Broadway,N.Y.6 COrtlandt 7-5680

deposits housed under one ; roof
in the country, by a commercial

the full

First

Brokers

111

than
its nearest lo¬

in deposits

has the largest

1863, and began business on

JJo.TV

truck tires and 100% in passenger
tires has been

the

incorporated in

Akron, .Ohio,

cated

Inc.

;

Tokyo, Japan
'■'?

competitor, which was1 twice
size of First in 1929. It also

cal

Bank of Chicago

This bank

repair materials are produced in
each of the company's plants lo¬

Trading Markets

Air Control Products,

D. WHITNEY

First National

of
^

•

Yamaichi Securities Co., Ltd.

equivathan the

methods,

aggressive

Winnetka, 111.

gain national reputation
trade.
Tread rubber and

>
'

*' -•
Both of these accomp¬
lishments. are unusual for so large
a
bank in this country. ;
%
• *'

Investment Advisor

hawk to
in

Affiliate of.-*,

National has grown to more

ALAN

work

Inc.

of New York,

high.

1929

exceed

pioneer in the produc¬
tion
of
camelback, now better
known as tread rubber, and the
firm holds a dominate position in

Members

it stopped

market 0f jts stock is the

lent of about 25%

write

Yamaichi

annual ;rate of $8 a
equivalent to about 50%

Securities Company '

present

quality pas¬

has been a

York Stock Exchange

Stock

18V2 to m2) I view it as

truck tires, Mohawk

and

Call

cash dividends from 1932 td 1936,

all seek.

senger

}foP0NNELL&fO.

For current information

what it takes."

SCRIP

and while

branch offices

our

STOCKS
v

Chicago was one of the few large
banks in the country which did
not write down its stock' in the

depression,

JAPANESE

time
com® and smce this stock more tban jts regular annual paypresents such an attractive value ment in 1929 Als0j the current

"One

said,

Direct wires

again in 1936. Since that " time,
capital has increased from $30 to
$100 million, all by stock' divi¬
dends.
First National Bank of

(Over-the-Counter Market around
the security I like best. Surely the underlying value, growth, earnings,
management and yield comprise
the components of securities we

Aside from making

American

the best
contributions I have been able to
make to the company is that it is
manned by young men. They have

Since 1917

New

vnunp

Mobile, Ala.

1926,

and afterwards stock
rights in 1929 and

sold

will continue to flourish for some

Morton A. Cayne

management. Recently Mr.
in commenting on the long-term
outlook

presents

million

$15

solidated,
was

pansion.

Board, Mo¬
hawk
enjoys

RIGHTS

busi¬

There is every indication
that the tire replacement business

President, who
is now Chairman of the

Specialists in

1900

mainly by sale on. rights of stock
at very advantageous prices. A
33% stock dividend was paid in
1929, before Union Trust was con-

opportunity to participate in a
/ery fast growing company hav¬
ing exceptionally good managenent, who are ever alert for
future business and potential ex-

ron,

PHILADELPHIA

NY 1-1557

NewOrleans, La.- Birmingham, Ala.

increased

the common stock

Rubber

Mohawk

of Ak¬
O. Found¬
ed in 1913 and

pany

New York 5
Teletype NY 1-40

WOrth 4-2300

I believe that

Com¬

Rubber

Member

$1.00

6, N. Y.

19 Rector St., New York
HAnover 2-0700

ness

The Mohawk

Established 1920

120 Broadway,

sistent; of course, with sound
practice."

company

be based

"will

their

some

Capital stock of First National
from about $5 million

1941
year

policy of Mohawk,
on earnings; con-

future dividend

ample of such

recovery

assets.

per share and in a letter to stockholders in August of this year, the

standing ex¬

=»

1938,

reorganization in
dividends were resumed in
and have been paid in each
to date. The current rate is

out¬

most

Members American Stock Exchange

from

Since the

Steiner, Rouse & Co.
Members New York Stock Exchange

common

par

stock.

ings. I believe

New Yoi* Hanseatic

Advisor, Winnetka, 111. (Page 2.)

to $1,650,990

638

Some automobile tire

long-term
and
presently outstanding 141,-

Investment

Whitney,

Alan

The

$25.70.

amounted

debt

Cleveland, Ohio

Bought—Sold—Quoted

First National Bank of Chicago—

current asset

net

and

$39.21

value

Ine.

J. N. Russell & Co.,

Experience

Associate

Russell & Co.,
Inc., Cleveland, Ohio. (Page 2.)
of J. N.

Cayne,

intended to be, nor
sell the securities discussed.)

they to be regarded, as an offer to

are

Louisiana Securities

Co.—Morton

Rubber

Mohawk

(The articles contained in this forum are not

Speed

Corporation

particular security.

Alabama &

Their Selections

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

fin the investment

Week's

This

Forum Participants and

A continuums forum in which, each

Over-the-Counter

If it's

Like Best

was

longer
of

and

more,

they

represented

Directors,

its

formerly.'

Board

This is

National Quotation Burean
Incorporated

46 Front Street

Continued

page

Mew York 4* HY.

Number 5680

Volume 186

The Commercial and Financial Chronicle

...

(1559)

The Economic Outlook

"FABULOUS OVER-THE-COUNTER MARKET: WHERE

By SUMNER SLICHTER

TRADING STARTS AND NEVER CEASES"

Lamont

holds the long-range

Slichter

Dr.

good,

outlook for the

ARTICLE
Market:

economy

Following
to

the

are

Where

ing the

those in the 5

economy,

from

say

feeling the effects of research

the

penditures made before 1950 butnot, to any extent, the effect of
expenditures made subsequent to

1960

(A)

The long-range outlook for

the economy

is good, mainly be-

■

cause

;
<

econ¬

dec-

several
ades

hasgreat-

1 y

increased

i t
,

the

in the last

omy

capacity

both

the
for

raise

demand

goods and
rais

the

productivity
of

labor

capital.

and

scale research of the last 7

will be

velopment

Sumner

the

present

time,

manhours

by
engineers
and
industry are more
than twice as large as they were
in 1941 and they are about half

development

scientists

again
1950.
The

large as they were in
growth is continuing.
McGraw-Hill survey of re¬
as

This

that

shows

expenditures

expect to increase
their staffs of engineers and scien¬
corporations

tists by 15%

by 1960. Their out¬
lays on research and development
nearly doubled between 1953 and
1957, and corporations expect to
increase their research expendi¬
tures from around $7.3 billion in
1957 to about

The

$9.1 billion by 1960.

enormous

capacity that in¬

dustry is gaining to develop new

products and to make old products
obsolete is a new phenomenon in
economic

Its

conse¬

far-reaching and not
fully understood.' It does mean,
however, that the economy has
far greater
capacity to develop
investment opportunities than it
has ever possessed before. Various
attempts have been made to esti¬
mate.the time required from the
start of research on a new product
until
the
product is ready for
large scale output. The time va¬
ries
greatly, but the economics
department of the McGraw-Hill
Company estimates that this time
averages about 7 years—5 years
of research, plus 2 years to de¬
velop
markets. ' Whatever" the
average time, the lag between the
inception of work and the mar¬
keting of a commercial product is
considerable.
Today industry is

quences

history.

are

and
in the

(2)

will

pression?

will

ous

not

Conditions

tries.

have

;

Walter E.

move

conditions

into

Guaranty
Act

four

Ahead

Trust

Co.

Higher

the

than

Gold

Price"

Gustin Bacon

Pending
21

for

Amending

Pacific Uranium

Three States Natural Gas

of conditions is related to
More and

business managements are

advantageous

more "

■finding

greater the number

industries, the stronger is the
for cyclical movements

tendency
within

out

individual
and

industries

for

busi¬
ness cycles to give way to rolling
adjustments. The fourth group of
conditions

steps

are

that

general

the various special

have

been

taken

stabilize the economy by checking

upswings

and

downswings.

The

effect of all of these changes

Continued

page

Dealer-Broker Investment Recommendations

Einzig: "The Coming Industrial Clash in Great Britain"

Chicaf •
•

•
•

Exchange PL, N.Y.

Direct Wires to

Philadelphia

Los Angeles

Chicago

Dallas

32^

Notes

News About Banks and

Bankers—

Wilfred

Observations—A.

May

Our Reporter on Governments.—.

Our

Reporter's Report

Public

Securities

Utility

Railroad

The

2
_~

Twice Weekly

Park

New

Gardens, London.
Edwards & Smith

Pan American

Reentered

second-class

Gulf

Subscription

WILLIAM DANA SEIBERT, President

Thursday (general news and ad¬
vertising issue) and every Monday (com¬

Pan-American
of

issue

—

quotation

market

corporation news, bank
state and city news, etc.) ,
•

clearings,

OtherOfficea:

Chicago

$60.00 per year; in
Canada,
$63.00
per
year

135

South

Salle .St.,

2-0613);

Union,

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$40.00

and
per

Note—On

Publications

eign

Quotation

year.

Record

(Foreign

—

Monthly,

postage

extra »

account of the fluctuations

for
subscriptions -and advertisements must
of

exchange, remittances foi

be made in New York funds.

;

BROADWAY, NEW YORK 6
WHitehall 3-3960

Other Countries. $67.00 per year.

the- rate

3. TIL 4.Telephone STate

INCORPORATED

-Every

statistical

Sulphur

IK" V. FRANKEl & CO

Rates

Subscriptions
in
United
States,
Te,*rUnrfo<
•«*»»

Posses<ii'>TK
Dominion

10, 1957

records,

•

••

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

HERBERT D. SEIBERT, Editor & Publisher

Thursday, October

•

matter Febru

York 7, N. Y..
to 9576

Sulphur

Eng

DANA COMPANY, Publishers
Place,

Diapers'
c/o

Topp Industries

——

—

Reg. U. 8. PatenF Office

__________—

The State of Trade and Industry.

Washington and You.

Sulphur

and You—By Wallace 3treete___

Security I Like Best_

Mexican Gulf

___._____i.__-_

Securities Salesman's Corner
The Market

Vitro Corp.

Security Offerings

Prospective

Lithium Corp.

Securities

Securities Now in Registration

Glens Falls

Worcester

Teletype NY 1-1825 & 1-4844

Stock Exchange

TELETYPE N, Y. 1-S

HA 2-0270

Washington Ahead of the News—Carlisle Bargeron_

NSTA

the increase in the number of in¬

cancel

Coming Events in the Investment Field

Mutual Funds.

long-term
basis and to ignore the short-term

The

Singer, Bean
& Mackie, inc.

Indications of Current Business Activity

vestment programs on a

dustries.

Cover

From

to. plan their in¬

cyclical movements of business in
making these plans.
The third
group of conditions is related to

(Editorial)

Business Man's Bookshelf

As it does not

business methods.

See It

Bank and Insurance Stocks,

in a cyclical fashion, it is a
dampening influence. rThe second;
group

Employment

1946

As We

move

•

(Letter to

& V.T.C.

Government
far; more important

before.

ever

Teletype: SU 155

Regular Features

government.

spending

Schenectady

Exchange PI., Salt Lake City

Cites Need

main

plete

•'

39
18

JCY 1160

San Jacinto Pet.

groups. The first group are those
related to the economic activities

ST., NEW YORK 4, N. Y.

Boston

79th
._

Other

Interest Rate___

gage

developing- for

fall

HEnderson 4-8504

Teletype:

George C. Johnson Pleased With Response to New FIIA Mort¬

indus¬

Spencer Trask & Co.
•

Exchange PI., Jersey City

REctor 2-9570

Nashville

DIgby 4-4970

Vice-President, Issues Report
Proposed Bank Legislation

and

Albany

City Stock Exch.
Spokane Stock Exchange

States—Roger W. Babson__ 26

Lee P. Miller, ABA

WILLIAM

J.F.Reilly&Co.,Inc.

Editor)

PREFERRED STOCKS

TELEPHONE HAnover 24300

omy

Members New York

;

developing,

are

been

Welfare

General

FINANCIAL CHRONICLE

25 BROAD

PRODUCTION

Commercial Finance

land,

specialized in

Spahr, in Disputing Views of Franz Pick, "Places

The COMMERCIAL and

have

RIDDLE AIRLINES
10

.___

DAvis 8-8786

Published

For many yearswe

___

New "Toll" Rivers for the United

time, which make the econ¬
a whole less inclined to
in a cyclical fashion. These

some

net

Business Predictions for 1979 to Be Unearthed

non-synchronized

cycie

in various

MACHINE

quite disappeared, but it
cycles

CHEMICAL

: 13

verv

business

STREET, NEW YORK

Members Salt Lake

serious

is giving way to

The Pu&mess

recession.

has

and

Livingston

Challenges—Harry Held

special
circumstances to produce a seri¬
development

obsoletes

H. & B. AMERICAN

Broderick

It would take

recession is remote.
the

WALL

GUARDIAN

Anniversary of E. F. Hutton & Co

interrupted

for

Page

The likelihood that growth

Cashnik

Telephone: WHitehall 4-0551

Policies and Attitude in Florida Regulation—Alan S. Boyd

cycle passe?
(A)

changed anything at-

Wall.

still holds.

51).

page

The Long-Term Business Outlook—Charles T.

de¬
is the business

(or before)

serious recession

—hasn't

Mortgage Market Observations and Mortgage Lending

interrupted

time

well

Future—George S. Wallace, Jr

Companies—Frank J. Charvat___;

during that

Outlook—Sumjner Slichter

Commercial Pattern of Borrowing by

the possibility that

you see

growth

23)

page

America and the Developing Far East Economies
—John J. McCloy

5 years or more.

mmmmmmmmmmmmmmrn

SPUTNIK

(Table I,

years

Overcoming Financial Squeeze in the Airlines Industry
-Sir William P. Hildred-,

oppor¬

years,

ANO COMPANY

NORTHWEST
-

much
middle
Many important products
that are being worked upon to¬
day will not reach the markets fori
or

greater expansion

the

sixties.

The

devoted to full-time research and

only

Resurgent Westingliouse—Ira U., Cobleigh

investment

REEVES SOUNDCRAFT

tunities from research during the

rapidly
growing new
industry
of
discovery. At

Slichter

Economic

The Railroads and Their

slow increase in the de¬

173

Business and the Money Market—Homer J.

years

of us.
present outlook is that there

The

Iichiem

still pretty much ahead

basis for these
is

ex¬

that date. The effects of the large-

are

available

securities

An Open Letter to President Eisenhower—Neil Carothers--Cover
The

the

1970?

exemplified in the tabulations show¬

Articles and News
<

for

outlook

long-range

view

INDEX

•.

your

...

★

Meeting under the auspices of the Standard &
Poor's Corporation in Washington, Sept. y24, 1957;
The moderator was Lewis Shellbach, Vice-President
and Staff Economist of Standard & Poor's. — Editor.
is

inherent

10-year category (Table II,

Forum

(1) What

<■

"Fabulous Over-llie-Counter

page,

of hanks and companies which have paid consecutive

names

dividends for

cash

stated, at the Business

cover

Trading Starts and Never Ceases," discusses the

opportunities

the remarks of Dr. Slichter, in response

respective questions

the

the Over-the-Coimter Market

with continuing growth
buttressed by vast research expenditures. For balance of 1957,
assuming no change in Reserve policy, expects slow business
expansion; for first half of 1958 predicts further growth at
below normal rate; with brightened outlook taking effect next
July; Predicts duration of "rather" high money rates until 1960.
of labor and capital;

productivity

starling

investment

result of large rise in demand for goods and

University Professor, Harvard University

Teletype NY 1-4040 & 4041
Direct

PHILADELPHIA

Wires to

;

DENVER

SALT LAKE CITY

*4*
The Commercial

and Financial Chronicle

...

Thursday, October 10, 1957

(1560)

distributing services. The In¬
technic has the
further advantage of working out
for each client a complete port¬
folio adapted to his own peculiar
needs instead of disjointed
and

vestment Counsel

Observations

DOLLARS*

FOR YOUR

Electric Output

Carloadings
Retail

State of Trade

Trade

Commodity Price Index
Food

sporadic advice about individual
issues without regard to the spe¬
cific overall needs of the individ¬
ual. His compensation, remember,

MAY

By A. WILFRED
PERSONS AND PLACES

Production

Steel

The

Price Index
Production

Auto

and Industry

Business Failures

fixed annual fee in con-

of the individual s overall invest- (rayt £0 the illogical brokerage
ment needs. Also Brokers seem to comrnjss]on arranagement that 1
all of us, is: "Where do I go with have what I'd call an occupational was -ust taiking about, and this
my Investment Dollars?" This is bias
against recommending the amounts, usually, to Yz of 1%—
which, incidentally is tax-deductone
of the sale of stocks.

primary question, one that
has been nettlesome, I'm sure, to
A

prob¬
that

3ome

lems

ers

the

comes

individual and
one
which
I
am

always

However,

advanced
are

ones

careful

were

grMtadvantapthathis remun-

cars

about even

Automotive steel inventories

contenting themselves with

improsvement in demand al,e down so low that it's almost
jl..
r.
mnntii eiinniinn
a,1(1
SpUrt ey
ca^ nroduSr ^ast week was

gradual

about

300,000 units, some 45,000 more
than a year ago. Earlier the
company said its production for

showed modest improvement over the quarter would run
lhe week preceding, mju operators with last year.

—
that is, tne nciation is not lelated to tne cii—
and intelligent ent's activity, in contract to the
both individual brokerage commission-system.

analysis

secuiitv
more

fourth quarter

production the

showed mixed results
latest available reWhile
steel
production

J-

^ jble.a 1S annrpriaVinn °or
to^ cap.tal appreciation or
<? other results achieved.

and moie,
results of

moie
a vadable
the
die,

inuustnai

week

according

d esp i te
commission-w^em, today g brok- regard

trouble-

most

Total

past

"^pated
anticipated.

scratching around for small ton-

asked about.

over September levels, according
Many' sieei salesmen m ueu^i
to Wards Automotive Reports, feel it would not take mucn o a
Chrysler Corp., it was reported, is
get guidstepping up its assembly lines and
reflect the steady increases
Wilfred May
I
bas boosted its fourth quarter steel . e er tne steaay increases
dentally, re- larlyftothe customer who trans- ^0rtm1a^
schedules to about 300,000 units, that have been the pattern in re¬
member, the outside advisor is acts his business there. V" t*v;-fHere again, with a counsel, it is some 45,000 more cars than a year ceJ]t weeks. • ^
useful also to the expert investor
r
-y*r.• '- particularlybehave properly. client that its
necessary-for a That ag0> The companyfor the quarter tant thing to keep in mind in
stated earlier
The Iron Age says the lmpor^
to let him
production
IIow Choose?
just as well as to the amateur,
is, to take the long-term attitude Would
about even with a vear judging steel operations is the
just because, again, of psycholog¬
The
question, "How Shall I stressing preservation of capital ag0
steady increase in ingot capacity.
ical factors.
first
must stnrt witFi
Choose my Broker?" constitutes, I with satisfactory income, and not
j'
electric lieht and nower As capacity increases, more tonindustry outnut decked for tte ™3e must be produced in order
output declined for the
.
,
..
rSJSS of which there are tion
the services ofLS it!fear; the $64,000 investment ques- )o become restless because Aunt
even more so than which Susie
or
the Cook has
made second straight week
'
to ™ove up the in&ot operating
three broad categories:
>
Doctor
Lawyer to call in on 1,000% from a hot-tip from her
statistics on unemployment rate- Respite the slow recovery
(1) The Personal Counseling your case.
, ;
smart broker. Don't confront your sh0w that new claims for unem- Ijwwn the summer lull there is still
vvillvn"H(ih«lnn!s fhnifp of Li
*-•
nnmiph husiness to maintain the
typical
dary is

and

n c 1-

a nee.

for

departments

accounts

minimum of $100,000 on

assisting
their Lcustomers
with fi1nt nrp iprpiitihlp wiih some extheir investment and tax prob- ceBtions
$50,000, which
lems. Usually, these services too, might exclude some of us more
'
are-given without cost, partieu-^vi^fArffmrdwr.

down'to

•

how

special

tain

quan-

where to

run

Now

\vn

—

•

which is usually conr
eentrated on Portfolio Manage¬

;iflv-!«fff

Service,
ment.

•

(2) The published factual

sta¬

tistics and other data publications.

Those services printing ad¬
visory help.
(3)

Now, let's talk

about the per¬
services

consultation

sonal

available

are

here

and

that

first

The Broker

of and

relationship with, a broker
your
stock exchange
business, is no doubt, the most
difficult part of my assignment,
The mam difficulty facing ; you
handle

all

not withm your provmce

but

sterns

from

the

very

nature of the brokerage industry,

ordei

Make

nal.

sis

advice

and

remuneration

m«.

chargeable.

possesses

...

security analyportfolio man-

trial

Use

Department

for

prmr

derived

let hinv-

other words,

}lere

£0

you

we can help
]aS£ sufficient

a£

value of the' portfolio, with a ment in the apparel, aircraft
minimum of $300; for the next half food processing industries.

methods.

for

two-minute

along with other
orders, or over a drink at a bar—
or on the other hand, after getting
the benefit of generous advice and

perhaps

tion,

oftmninio

liAi'Vioi-vo

agency

At about $29,000,000,000, manu-

facturers' sales in August rose less

stated.

This brought total consumer
debt for August to nearly $42,900,-

000,000, or $3 000.000,000 above the

year-earlier level.

rm,, nftttuc

given through a'single
telephone converse-

order

Payment loans --- clito beid by
and $170,000,000 to $9,800,000,000, the

Now the advantages of the Bank than seasonally from July, and
The Don ts
Trust Departments are:
were slightly higher than a year
iniu^7the past week
fe^DON'Tf-:' °on,t
(1) Management Experience and states '^Deportment0 of Commerce launched its October passenger

do?su?h1CceommiSnnfn?ptn?
alike

sound sume, none of us will be interested
above that stratosphere.

pursuing

partment

same

ment debt—including charge accounts, service credit and single-

1S as I°hows:
most noticeable declines occurred
For the first $500,000, Vz of 1% in Michigan, Indiana and Ohio,
Again, equip youself with of the average monthly market There was some new unemployco

to future market move-

behave.

Excepting for variations in the

t™™

department

In other words, if he

being

the

increase,

your

Itfvlses remuneration at all.
y°u t0 d?.no ^smess, he to check whether his analysis de- million it is % of 1% and, I preget no

form'

the

installment aeox m
uuueu
by $346,000,000 duiing August, t e
Federal Reserve Board reported,
The the 1956 month and considergain was slightly smaller than

Yoit can
Y°11 can

error

and

which is knowledge, to which

commission

xhe Xrust

from them Invest- declared.
get from them Invest- declared,
ably under the gain in the like
among {your
prospects.
Again, ment Advisory Service. They set
Total insured unemployment for
0*
.
treat your broker as a professional up portfolios liv consultation with the week ending Sept. 21 was up
y?ch debt whileyear giew y
last the August,
advisor, that is, don't expect him YPUvthe .client. You get continuing 12 800
to i,i8i,900, it further $347,000,000
t0 beat the market or outdo other supervision,
usually through an stated.
19o5, figure climbed by $649,000,brokers
in, supposediy, making cxnert officer, with a periodic reAs several automotive producers
„
... .
,
market profits and—don't believe view by a higher-up over this offi- completed the model change-over'
All types of credito increased
everything you hear. Encourage ?er* The decision to make changes process, many temporarily laidaaa
sP.earbea(je^
broker or advisor to preserve in
Portfolio is left to you .. . 0^£ workers were recalled. This a $
'PP^'aaa Anife ?n.a 0,
long-term investment attitude, the .final decision. Then, physical primarily acoounted for a 9% de- and a $106,000,000 gam m personal
emphasizing income and to pursue custody of your securities may _be cijne ]n initial claims for unem- loans, the board further note .
value appraisal methods toward !eft Wlth ^
institution which plQyment insurance last week. These helped increase- total mindividual issues, instead of the {ssues monthly statements to you. However, claims were 25% higher stallment credit to $33,000,000,000.
indoor sport
of outguessing the mending tax data.
The typical than the similar 1956 level. The
At the same time, non-mstall-

buy or sell an ex-,
security you must
entrust your order to a member crowd
of that exchange and practically nients.

change-listed

sure

adeauate staff for

agement.

(a) The Customers' Broker.
A.
.
.
,
.
Advising you as to your choice

here

vtous w«ek' the United States Department of Labor reported.
The third group of personal
Layoffs in the auto industry and
consultation services available .to a two-day shut down of clothing
you 1S through the Trust Depart- piants in New York for religious
ment of the things they give you. holidays were mainly responsible
°| y°u5. ^>ank, and here are
some
'

well-equipped brokerage f 1 r m s
from your bank, your accountant,
your lawyer, or perhaps from an
advertisement in a financial jour-

have:

d,uri"8' market sessions. Don t
!ool5 f?r -hllia. t.° beat the market,
ln taft, don t let him try. Don t
tem?!: hl1ni .J? c^er,,to .y 0 u r.

partiality and Objectivity regarding such things as family differences, which, as you may know or
have heard about, is a very fre-

emotional foibles. Dont get upset quent

managing

difficult.v

Although new orders rose somewhat,
the
backlog of unfilled
orders declined again.
The book
value of manufacturers' irtventories
stood at $53,500,000,000 in

reproduction by programming a
..

levels, Ward s Automotive
ports' stated on Friday last,

not

car

♦One

current

series

by Mr. May at the Npw School for
Research, New York City.

Social

for

Now

sharp

production drop to
~

552

BOUGHT

QUOTED

GRAYE

comparatively
Investment

the

Tnvestment Counsel.

gets

...

income

his

The Counsel

from managing
the giving of
investment of

his accounts through

CO.

funds
ual

New York, N. Y.

Tel. WOrth 4-1030

Advisory Field and with a disti.nctly professional attitude is the

advice

15 Maiden Lan^

advisor.

invest-

ties

the

the basis of the individ-

client,
engaging in other activi¬

needs

without

such

particular

brokerage,

banking,

higher costs

tll^

il}e medalthere aresome
-.™S

L.unL ^ TLLLiLLihLL","

model output during the week,

The steel mills are still suffer- with Chevrolet.
ing from slow-orders this week. and Oldsmobile

portfolios' "Thp.Iron

the

vou

legitimately.

lose your money

And,this

I want to say again and

again through the course, explains

the great trend toward the "btoe
..
«
t

•

....

chippers," and the great disparity of
name

stocks—of blue chin

selling
with,

at
on

3Yz%

the

yield.

mainlv

due

*o vield,
any
stoeks s°ll

hand

other

numbef of other

stocks

good

TKis discrennncv
the emotional

Continued

page

46 -

Edsel and Chrysler Corp. in new

A,e.e" na,i°na' ™eta1'
erLt working weekly reports. But some
temptation to a^v of vou who ^iU
pxecuttlves ar?, Vesl?"inB
h
p
b
y0
yed w;th themselves to a gradual pickup
LieBtL ,e^Hties nL whn hi4e
^ 8purt
y
maaXsStieTwwho We expected. ** S£>Urt ttey ^

"wtndow-dfesSne"

TLnihLLLL^ lherLis

the

,^IWI1VI

* e °mer margins somewhat.

cou] s,e',on

the number of transactions.

22,72o

merely

robust 1958 model
t
rd production this week.
reduced profit
Mercury and Packard joined

,,,

the activity or to

is not geared to

anything to say in managing secu¬
rities for others, to be sure that

Advisor

scientific

the

arrival

new

only

friendship and ability.

Scientific

ment

friendship;

to you of

there
in a few
securities
broker just

if
ither things are equal will friend-hip be determining. If thev are
not equal, only you, yourself, can
determine the relative importance

(Canadian)

Current Market

with

because

GYPSUM CORP. LTD.

—

trolley

beautiful woman,

Don't stick with your

ATLAS

SOLD

punouja-

another one along

lectures

^mutes'"

Morgan

.<Do^t 'run aBfter

tion.

danger of encouragement
overtrading as well as of ne«l°et

poses
to

being

accusing

inoiuuci

human beings,
them of being
dishonest, this commission system
Brokers

and

Re¬

"Ward's" noted that last weeks
was

Ta,.llirH1,

"The

Iron Age" states
-£

„

that the
+

week.

Pontiac, Buick
set to start thfs

By mid-Octob .
added, Ford Division and Cadillac
wm have joined the parade, puttin! 4,he e?irf- basis.
M production
553
model
Tke

statistical service reported
--

!lext. couple of weeks will tell 0ctober production schedules at
the H
Bv
L
wf 350,000 cars and 93.500 trucks, folffm'no
lowin§ 284'265 and 58,442, respec^h?tb^r ^eJ or continue to hold tively, in Pept^mber
®
their buving
tnoir hnvinff
rontirme
rolu
f

If th« automotive

bark.
comes

industry

life, other steel u<?ers
another loo> at. their

will

take

steel

inventories and hop onto the

bandwagon.

automaker—Cbrvsno its assembly
Chrysler has boosted its

At least one

lp.r—is

lines.

sterling

Chrysler

Corp.,

the

first

Big

attain volume
1958 model production, scheduled
a
7.6% outout increase the past
week despite a bodv shop strike
hitting Plymouth
four days,
"Ward's" r'ecia-ori an^ f>as already

Three car maker to

Continued

on page

Volume 186

Number 5680

The Commercial and Financial Chronicle

...

(1561)
be

hostess on the;first space
ship to the Moon and the green

of the

some

and net

•

Anyone

ina,

and

But

make

can

and

■

roughly 3%
of
research, West-

inghouse should continue
ahead.

difficulties, not weights that drag

this

prospects of advancing
struck market, is

duwn, bui

Already it

transport
;t

forwa

cfeVr ...
propursion.

one

demon¬

strably

case

the

case

assignments.

then

you

Cor-

tne great electrigreat eiectri-

J-40

jet

had

with

about

the

This

created

tual
;

and.

starting

late

1955,

dismal
created

costl\-

setback

basic, labor
costs
for
Westinghouse, which costs had, in relation
to. those of its competitors, gotten
of

out

hand

postwar
This

immediate

era.

;

•

chronicle

not

further

will

negative.
those

the

Rather

con-

gloom
the

accent

;

piece, however, is not

ceived
and

will

stress

resolute, albeit temporarily

suppressed,

corporate characterwhich had made Westing-

istics
house

great, and

are restoring it
eminence, right
illustrate, in every year
since
1949
Westinghouse
has
grossed over $1 billion and, even
in the dreary year of 1956
(when
earnings were clipped not only
by the strike but by a 72-cent per

its

historic

now.

deduction

due

changing
inventory accounting to LIFO),
gross revenues were $1,525 million, down only $111 million from
the

best previous year,

1954.

For

1957, the trend is vastly different,

per snare net in the

order of

horizon

due

happen-

managerial
determination, aggressive and(ef-

fective

research

and

improved

merchandising techniques. Messrs.
Gwilyn Price, President, and Mark

the

road.

going

on,

While

research

ber.
•

Rather

that

when

the

strike

did

double

production

not

slum-

timed

appliance lines.
-tories

trained

nnd

resumed,

Westinghouse was able to
major technical advances

offer
in

its

With 200 labora-

'Over

6,000-

highly

^engineer^ technicians

electric
electric

vir-

current

million.

ratio,

No need for

presently

seems

the

historic

policy

net,

(Depreciation

and

amortization

Now let's look at the stock. Has
it appropriately adjusted its price

the

aforementioned

lull

hiatus in earning power, and ap-

propriately
potential?
Oct.

appraised
The

the

future,

qupte for WX on
That's $17 over

60.

was

the latest book value, $43 „ and 15
times indicated or estimated 1957
net
at

earnings.

60 represents

(General Electric
a 23 times/earn-

jngs ratio.) In the past 10 years,
Westinghouse common has ranged
from

low

high of 83%
nized

(1949) to a
By all recog-

statistical

data, WX
better equity

substantially
than it
ago

20%

(1955).

two

was

when it

and

was

half

Acquisition of
Of

versatile

and

capitalization

complicated
substantial

16,744,000

here

and

leverage

common

this

equity

blue chip

listed

there

paid a
years
in

been

acquired

and

far this

year

prime responsibility at

Company, Inc. Porter maintains intensive

development

programs

which

are

translated into

manufacturing developments almost
This

The

dividend.

program

place has

of planned diversification..land

1150% increase in Porter business volume since

dividend
row

new

month.

every

of the needs of the market

awareness

resulted in

1950. This volume

aug-

mented, in 1954, by an extra half
dollar. This $2 rate is
amply supported by current earnings and
there have recently been
those
bold enough to suggest some sort
of extra stock

have

number

plants in the United States

lies

rate.

has

seven

brings to eleven the

item at 81%

favorable

Company

•

H. K. Porter

provides
for
the

yielding 4.60% for tho'fee presently
in search of ultra
dependable income

Forging

Serving industry's needs is

not

but
$321 million in debt, and
$49,579,000 (par amount) of $3.80
preferred stock. Incidentally, this
a

Canada, four of which

>77"

years

the New York Stock Exchange,

Ahead

Hardware

They manufacture products in

selling 23 points
.

The

Cleveland

now

higher.
too

The

Porter divisions.

Such

comes

steel and fabricated steel

from divisions

manufacturing

products, copper-alloy metal

products, electrical equipment, refractories and indus¬
trial rubber, wire and cable.

idea, however attractive, must be
regarded
There
research

strictly conjectural.

can

and

little

doubt

production of

that

elec-

was

pansion and modernization funds.

Creasp, Executive Vice-President, have put a lively show on

should be in the order of $50 mil¬
lion for 1957.)

for

It's

retaining 50% or
plus depreciation,
deliver the requisite ex¬

common

stance.

■

trie and electronic

the

nomic

with

main

equipment

stream

our

and

activity today, particularly
baby Muscovite moon fly-

communicating
whereabouts

waves.

Betty

its
us

Furness

velocity
may

•

II. K.Porter Company, Inc.
CLEVELAND
LESCHEN

WIRE

CONNORS

ROPE

STEEL
QUAKER

DELTA-STAR

•

RUBBER
H

ecO-

ing about us presently at a paltry
18,000 mph, guided electronically,
and

•

are

radio

well

•

ELECTRIC

REFRACTORIES

PORTER

COMPANY

Henrv

DISSTON

VULCAN

(CANADA)

LTD

CRUCIBLE

RIVERSIDE-ALLOY
STEEL

•

than double the funded

and

initely resurgent.

tion is not due to luck

distribution techniques,

(1947-53)
more

should

lysts.

Now all of this
resumption of
significant corporate forward mo-

;

■

transmission

5%-to-l

latter is

$4 is being predicted by icy anaWestinghouse is now def-

dutv
duty

and

end

financing

the

trade
position of the company,
particularly in the field of elec¬
tric appliances.
But that is all
history; and however anguishing
it; may have been for manage¬
ment, labor, shareholders and the
public, it did bring back into line,

heavv
heavy

debt of $321

to a
and

cific Coast Stock Exchange.:

Finances at Westinghouse. have:

and

156-day strike -which
dipped- per share earnings .on
Westinghouse common from $4.78
(an all-time high)
10-cent
for
1956;

lion—a

tragic

1954

■

Westing-

notably well handled.
At
of 1956, and in
spite of
the misfortunes cited, net
working
capital stood at a lordly $687 mil-

and carrying over well into. 1956,

for

■

renaissance

the

1954

been

negative publicity.
Then came labor problems. First,
wild cat and sporadic strikes in

the

■

lead, and to

Westinghouse has achieved

some

■

in such coming
heat pumps, in the pro-

sales and

time, the

Air Force concluded its flight and
fire
control
contracts
with
the
company.

■

power

Bingham,

under the direction of Arthur W.< Spring Street, members of the Pa¬
Murphy.

Westinghouse;
same

with

Westinghouse is now
again effectively competitive
respect to advanced design,
product
efficiency,
advertising,

con-

the

now

Hurry, Inc., 621 South

once

can-

generating
equipment,

share of troubled days. In the

Smith

duction
duction

equipment manufacturers of
America, Westinghouse has , had

celled

appliances,

devices

Navy
engine

expect

may

prosper.

•

latter part of 1953 the

Co., Inc. has opened

branch office at 1500 Oak Street Walter

own

LOS ANGELES, Calif.—Melvin

•

majpr.Amer--

house to continue to

"Westinghouse

Lober

Ala. —James

tract

its

Bingham, Walter

nueleonically produced or
electricity atomically generatect,

corporate

ectric

and

.IeS.11 our ec0nomy and 11

■

atomic powered air- v
carrier - (85,000 tons);
the .

house
to

its

"dusteies if oui^eSmfaTd

Pacific

(Special to The Financial Chronicle)

electric"power* generating'
plant — tne&e, ioo, tare w eating-

enterprise.

poration, for example.

Joins

fpriag

street» *members of the
Coast Stock Exchange.

ican

ual, can be
equally true
in

same.

first

reactor for the first

individ¬

the

craft

true

in the

^econa among
cal

nu-•

"plant has''already weathered

The pmver

MONTGOMERY,

subs private depression, and emerges
a Westinghouse far more powerful and dynamic
propulsion elements.
I
'

^enlevement, "first"; the
And
what
is
0f

Cobleigh

its

& f?,!low> was

thus

established

i 1

* "7 **
& C?" 453

James Lober Branch

It operates

Rfltuman

Wlul iSateman, JLlcnler

LOS ANGELES, Calif.—John

vv-

ent level of around 60.

Wi»li

<sP»'»>'°T»'F.»»Nci^cnBo».aE>

*
.

And what other major listed stock

v,? t? for the "Nautilus"-(and [five

•

Ira

has

wings that preeminence in the field oL

respecting it tend to justify

moon

standards not inflated at the pres¬

to move
■

5* *£3

one

fi-,

certainly not a simple task. But can
you name that may increase
in Westinghouse we
perceive an' its
per share net by 3900% this
equity that has- taken quite a
year?
beating,' and that is by historic

gross allocated to

these

enviable

u in the foregoing you detect
a subtle note of bullishness about

of sales

curve

scientists;

character, stam-

vision

rising

earnings.

get into difficulties

can

occasion.

achieved

now

and

The selection of stocks that offer some

why this renowned electrical

reasons

has

company

before,

Wratinehoui refrifferttor"

Enterprise Economist

equipment

than

nancial condition.

ke^Setefb» :

By DR. IRA U. COBLE1GH

Analysis of

our

W-S

METAL

FITTINGS

The Commercial and Financial Chronicle

(1562)

and

Business and the Morey Maiket

governments

services.
With

goods

for

and

The Railroads and Their. Future

people employed at

By GEORGE S. WALLACE, JR.*

higher wage anu salary rates than

By IIOMER J. LIVINGSTON*

before in

ever

The First National Bank of Chicago

history, the

our

sonal income of

Economist, Naess & Thomas

per¬

people has in¬

our

Thursday, October 10, 1957

...

Investment Counsel
"

Chicago banker does not know whether business will slow
down in 1958 but does know we "cannot become indifferent

peril of inflation." Mr. Livingston advances a two-fold
reason for encouraging savings, one to accommodate orderly
investment and economic growth and the other to preserve

annual

rate

New York City

billion in December of 1954

$293

the

from

creased

Railroad

$344 billion in June of this year
17% increase. This large flow

whose

—a

personal income has provided
steadily increasing demand for
the wide range of products desired

/petroleum

monetary integrity, and contends that an informed people can

better meet the present

economic challenge. Praises our mone¬
tary policy but holds business, labor and government cannot
leave sole responsibility to monetary authorities.

American

the

leisure

income

has

sumer

his

spend

I between

increased

disposal,. the

found

that

con¬

I rate

Money and
that

our

role

credit play a vital
although
not always
widely

understood.

However,

after

extended pe¬
riod of excep¬
''Mm

order to

$13 bil¬

With

of
J. Livingston

Homer

and

corpora¬

holding increasing quantities
cash and securities during the
and with

war,

stricting

make

should
these

current

like there¬

comments

aspects

business

place the present in its

proper

may

see

re¬

pe¬

re¬

economic activities,

many

there obviously was little need to
borrow to finance purchases
or

operations.

large

perspective, and to begin by
viewing briefly the postwar

regulations

war

Thus, despite the very
output, private debt in¬

war

creased

less than

lies

10%.

Corporate
long-term debt actually declined

running at

were

$277 billion

1957, which
the

over

15%

$241 billion

increase

rate in the
65%

final quarter of 1954. Because

the

total

for the

demand

na¬

tion's output of goods and services
is represented by these personal

that

channeled

our

resources

the

were

the

pelled to borrow.
credit

felt

consumer

Total

outstanding

1954

of 1956, a

The

has

years

apparently

We had
A

war

imperative

had to be

it with disfavor.

objective.
That

won.

was

the single goal of the entire nation.
The construction of highways and

vast

tive
the
to

Younger people

war

increase

capacity

took

our

produc¬

place

during

New plant

war.

capacity had
brought into being to pro¬

inclined

were

idea,

probably

favor

because

the

their

greater needs for the types of
goods commonly bought on credit,
and their lesser ability to buy for
cash. Consumers also

quence, there
economy

auto¬

built up in our

was

immense market for

almost endless number of items

ranging

from

nylons

the

sky¬

scrapers.

almost

infinite

needs

to have

seem

faith in recent years in the

produce electric power, and both
the expansion which took

place in

country. Steel capac¬
ity increased 17% in the five years
our

from 1940 to

1945, from 81.6 mil¬

lion tons to 95.5 million tons while

Thus, when the war finally end¬ electric
ed, there was a vast pent up
demand

23%

for

goods

and

ap¬

lawn mowers, tele¬

power

vision sets and

vacation

in the

services, million

homes, automobiles, electrical
pliances,

power

trips.

the eleven years from 1946 to

same

period, from 50

kilowatts

kilowatts.
rible

capacity increased

The

waste

million

meant

war

resources*

the

But

which

they

feel'provide

of financial: secu¬

assurance

rity in old

It is probable that

age.

increase his willingness to add

to his debts.

Some

•

the

problems

related
credit

consumer

illustrated in the story of the
salesman who was trying to sell a

are

1956, did compel us to increase enor¬
inclusive, we built almost twelve
mously our industrial capacity in housewife an .electric dishwasher.
million homes, over 56 million
pas¬ a
very short time.
He said, "Madam, if you buy
senger automobiles, about 53 mil¬
Our industrial development has this dishwasher it will
lion
television
help you
sets, 44 million
continued in the postwar
to save the cast of a maid.
You
period,
refrigerators, and 2
million elec¬
so that
today our over-all produc¬ will be saving money every
tric dishwashers. We spent billions
tion- of goods and services is near month."
for recreation and
vacations.

1957, alone,

estimated 700 thou¬

sand Americans will visit
Europe.

During
from

this

1946

almost

eleven-year
1956

incredible

we
sum

period

record

levels.

increased
tons in

Steel

40%

1945

capacity has

from

133.5

95.5

million

million "tons

iri

1957, while electric power ca¬
spent the
118% from
of nearly pacity has increased
62.9

million

kilowatts in
$330 billion on construction of ail
about 137 million kilowatts
types.
In no other comparable

period has
so

any

tremendous

economy and

in 1956.

Post-1954 Developments

expansion of its

and

gratifying

in the economic

businesses

had

greatly

in¬

creased. Since much of this income
could not be spent because of con¬

trols

outright

shortages, the
savings and liquid assets of indi¬
or

viduals

and

„

businesses

accumu¬

lated rapidly.
•An

the

address

Farm

by Mr. Livingston before
Equipment Institute, Chicago,

Sept. 18, 1957.

time.
has

While

slowed

the

this

rate

compar¬

ison to-1956 and
1955, and activity
declined in some industries,

has
the

very

economy

high

whole

level.

consumers,

replied,
we

bus fare.

vision

Then

business

"Well,
buy it.

can

set

tertainment

bought

automatic

en¬

week

clothes

laundry

save

much

now

save."

can

July,

credit

was

and

know, mister, I think

from

chases

save

tele¬

Last

expense.
an

saving about

recent

movie

save

order to

You

we are
as we

bought

indicates that

survey

1955,

June,

1956,

used in 65% of all pur¬
new

automobiles

and

68% of all purchases of used auto¬

the

size

mainly

and

com¬

tional ec.ono-

the rate of growth in the stock of

During capital and the success of innova- *
;•
!
past' cen- ' tions.
tury, investor
Sees Shrinking Labor Force
regard for the

my.

the

railroads-rh

a s

■

1965

f1uctuated

United

with

190

the

tunes

for¬
the

industry

with

population

the

States should

million

persons

about

of the

compared

million

170

about

reach
as

the

alternated be¬

What is more im¬
portant is that the number of in¬

tween
.,

dividuals

the

railway

nine

which

of the

industry

tion.

drop to
by 1965.

note

that

itself.

the

demand

Con¬

about 55% of the
It is interesting to
1945

this

age

group

smaller

percentage of the total
for carrying
the
productive burdens of the
economy while a larger propor¬

will

transportation f in terms of the
anticipated levels of economic ac¬
tivity. Following the general pro¬
,

jections, it.should be then possible
to reasonably determine the prob¬
able role of the railway industry,
taking ... into
consideration,
of

force

represented 63% of the labor force
so that with the passage of time

all

for

labor

percentage will, there¬

fore,
total

sequently, it is necessary to first
look at the economic potential be¬
tween now and 1965 and attempt
determine

The

structural part

look for the economy

of the

most

but also the out¬

as a

of 18

ages

approach 105

Significantly, in 1956 this
group consisted of 96.2 million or
some
57.2% of the total popula¬

consideration not only the position

of the economy

the

likely to

drawn.

the
into

over

take

between

million, for it is this group from

niary despair.
An appraisal
must

and

nd pecu¬

outlook

years

periods

of joyous prof¬
its

George S.Wallace,Jr.

present time.

tion
•

responsible

than

will

before

ever

dependents.

•

If the 18-64 age group

is related

to the total labor force and allow¬
ances

made for approximately

are

million

people

the

armed

forces, the civilian labor force will
reach

million

1965.

1960

Using

and

our

rela¬

tively full employment figure of
96.5% .results in an employment

Ahy: effort 1 tdcdnsiderthel po-; level in I960'of 67.6 million and
tential of the'American economy * 70.4 million " in .19657- This is : in
over

future

of years must; contrast to the 65 million gainfully
employed in 1956.
"
% -

span

Estimates

•

2% Productivity

-Per Year

projections are made. " For our :; ./ The ' second ; important factor
it is necessary to say that will affect the potential size
only, that/the social institutions,! of economic activity in the future
which
we .: summarize
by
the is the trend of productivity of the
It would
phrase
individual freedom - and economy as a whole.
enterprise, will continue to exist appear reasonable, in view of the
the

less in the

true

form

same

Secondly,

today.

as¬

that there will be no major

sume

outbreak of

war

but that the cur¬

rent level of international tensions

not

other
words, the cold war will continue
and the American community will
continue to function under a polit¬
ical and social system which is
are

likely

basically

ease.

organized

around

inde¬

pendent busness units.
The
one

third

assumption,

and

with which many people

take

exception,

the
may^

is that the econ¬

characterized by a
condition of relatively full, em¬
ployment of all the resources, hu¬
omy

will be

man

and

material.

For

our

pur¬

have assumed relatively
employment.
Statistically
speaking,
this
means
that
no
more than 31/2% of the total labor
poses

full

force

will

level

enormous

expenditures

for

plant and equipment together
sums being allocated for
reesarch, and the rapidity of inno¬

with vast

vations, to use a productivity fac¬
tor of perhaps 3% per annum. Be¬
cause
of some uncertainty as to
the ability of many sectors of the
to maintain this rate of

economy

the

especially

increase,

service

sector, and because of it there is
the possibility of an increase in
time

leisure

due

contraction

the

workweek,.it appears that
a
figure of 2% would be more
appropriate.
Consequently,' > the
estimates of increases in real out¬

have

upon
the
2% average
increment in productivity.
• /

put

been

based

population data and

When efforts
vert the

the

are

made to

con¬

physical data into dollars,
discussed question of
creeping inflation be¬

much

unemployed.
The
real potential of the economy in

chronic

that about 85% of home purchases

terms of

hurdle.

pend

mobiles.

Similar, figures

individuals

and

made with the aid of

This growth in the economy has
been made possible
largely be¬
cause
there has
been
a
strong
demand

sure

increase

year

We bought an automobile to

bills.-

Let us look now more
an in¬
closely at
well-being economic developments since 1954.
of its people.
Beginning in the last quarter of
Equally important was the fact 1954, our economy started a strong
upward movement which has been
that during the war period, earn¬
ings and incomes of individuals generally sustained to the present
crease

housewife
not

washer

nation experienced
an

1945

The
I

function

purposes

to the increase in

••

labor force in turn will be

first set forth either implicity or
feeling of relative old age se-,
curity has tended to • lessen the explicity certain-assumptions con¬
inter¬
urgency the consumer-'has felt for cerning;? the political and
individual saving, and has tended national atmosphere within which
to

can

commentators

many

this

ter¬

and

tragic loss of human lives.

plans,
some

adjusted ;in

think.

show

view that rails

easily than

course, those factors which may
security of their employment and.
interrupt past trends, in the,fabric
the military for hard
goods of all income, and so they are less hesi¬
mobiles and appliances, and the
of our transportation system.
sorts. Two indicators of the level tant
to
make
commitments for
consumption of gasoline and fuel,
of industrial activity which econo¬ future
for example, were
payments.
severely limited
mists use are the capacity to pro¬
Millions of consumers are under
except as they were deemed es¬
The Economic Outlook—1956-1965
duce
steel and
the capacity
to social security or private pension
sential for victory.
As a conse¬

homes, the manufacture

vide

suggests how

position- of the population while:
industry has; been the backbone. the productivity of this potential
;,
>.•.
-•
of our wide- of workers will be a function of
s pread n a the organization of the workers,'

31% advance.

old

years, / despite
of technological

$99 billion at the end

$5 billion.

government bonds.

wave

consumer

stigma regarding in¬
stalment credit which existed in

in cash and

upon

rose from
of 1954 to

creased from $76 billion at the end

profit

and social innovations, the railway

$30 '
billion at the end
$42
billion in June, 1957, an increase
of 38 %. In addition, mortgage debt
on one- to
four-family homes in¬
of

investor

can

evidence to support

seem

im¬

Consumer debt shrank 30%,
and at the war's end totaled
only

ended, over 75% Of the
effort, and assets of the nation's banks were

war

those which did not contribute to
that end were sharply curtailed.

100

over

wave

operations

passenger

■■■

Consumer Borrowings

15%.

the

For

With his increased spending and
with the use of more of his liquid
resources,

providing

the present long-term trend decline for rail

and offers

consumption
expenditures, their
importance to national prosperity
cannot be exaggerated.

loeen greatly reduced.
A survey
clearly the economic forces which
Finally, the liquid assets of the
made early in 1954 showed that
have shaped our present posture. nation's banks were
greatly in¬ 50% of the
people looked with
creased during the war as Gov¬
Reviews Postwar Period
favor upon the use of instalment
ernment debt required to finance
credit while only 37% looked upon
During World War II, you will the war effort
expanded. When
recall

and

reverse

Mr. Wallace doubts industrial decen-

survive chronic inflation

annual rate in the second quarter

than

tions

that

Then

individuals

traffic

recreation and services.

Expenditures by American fami¬

$42 billion In

over

increase

200%.

the money market.

riod.

securities—from

lion in 1940 to

1946,

It may be helpful at the outset
to

Corpora¬
(excluding banks and insur¬

un¬

influence it.

and

$136 billion in 1946.

ernment

the economic

some

The

companies), in similar fash¬
ion increased their liquid assets—
cash and holdings of U. S. Gov¬

ter the money
market and

and

available.

con¬

sought to

fore

goods

required
services were

savings
individuals, for example, had
more than doubled
during the war,
increasing from $56 billion in 1940

derstand bet¬

factors

funds

ance

have

sumers

buy

income

Savings

money

therefore

tions

government
officials
and
American

money

tight, business
e x e
cutives,

millions

The

tionally active
business, and
with

War

economic life,

capable

and 1965.

now

setting

able
•

role in

industry,

tralization lessens demands for transportation;

greater portion of his

.j pictures a healthy railroad industry,
favorably with the well-regarded

compares

opportunities, after examining the economic potential for rails

public. ..With
and

time

economist

productivity

All in
of

all, 59%,

every

five

indicate

families
a

are

mortgage.

about three out

American

Continued

house-

page

physical output will de¬

mainly

size

and

assets

and

the growth of the labor force.

The

quality

•An

upon

of the

address

the

capital

sence

something of an emotional
Because, however, the ab¬
or presence of inflation will

have

far-reaching

comes

for

by Mr. Wallace before
the New York Society of Security Ana¬
lysts, Sept. 20, 1957.

the

better
on

than

railroad
face
it

consequences

industry,

this

obstacle

avoid

Continued

it is
head

it by

page

ex-

Number 5680

Volume 186

...

(1563)

The Commercial and Financial Chronicle

Issues

New

off

City and County
California

6%, 51/2%, 4%%, 33A% and 3%
VARIOUS PURPOSE BONDS
ISSUES/ AMOUNTS, RATES, MATURITIES

AND YIELDS OR PRICES

(Accrued Interest to be added) V-i

$2,900,000 Airport Bonds—1956, Series A

Amount

■

"M ,790,000
: *

1,795,000
"■

1,795,000

•

1961
1962

;

1,800,000

1966

1,810,000

655,000

3%
3%

655,000

*The

the

1961

i97i

3.05%
S '3.10%

1972

■'■r

1970

1973.:

bonds

and

bonds;

Power

1975
1976

■

bonds, all other issues being 4%%

1962

$650,000

The First National City Bank

Harris Trustand Savings Bank

of New York

Harriman Ripley & Co.

Bankers Trust Company

received

are offered when, as and if issued and
and subject to approval of legality

by Messrs. Orrick, Dahlquist, Herring/on &
Sutcliffe, Attorneys, San Francisco, California.

de¬

The Chase Manhattan Bank Guaranty Trust Company
of New York

American Trust Company Security First National Bank
San Franiisio

of Los Angeles

of Portland, Oregon

Paine, Webber, Jackson & Curtis

F. S. Moseley & Co.

Clark, Dodge & Co.

The Boatmen's National Bank

Blyth&Co., Inc. The First Boston Corporation

Phelps, Fenn & Co. Merrill Lynch, Pierce, Fenner & Beane

Lazard Freres & Co.

Seattle-First National Bank

The First National Bank

C. J. Devine & Co.

Weeden&Co.
Incorporated

J. Barth & Co.

The above bonds

Smith, Barney & Co. The Northern Trust Company

Incorporated

Company

legal investments in New

funds and for other funds which may be. in¬
are legal investments for

R. H. Moulton &

bonds.

N.T.tS.A.

Lehman Brothers

•

City and County of San

Hetchy

$650,000 Hetch

5'/2% bonds, all other issues being 3%

Bank of America

■

savings banks, and are eligible as security for
posits of public moneys in California.

bonds;

Hetch

includes

maturity

■

taxation

vested in bonds which

Hetchy Power 6%
$210,000 Airport 3%% bonds, all other issues being
the

of the

Francisco subject to by said City and County (except certain
intangible personal-property, which-is taxable at k
limited rates) without limitation of rate or amount.

the

for trust-funds and savings banks and in Califorma for savings banks, subject to the legal limitations upon the amount of the bank's investment,
and are likewise legal investments in California for
trust

3.20%

19 77

We believe these bonds are

":3.20%

»t,

be issued under provisions

City and County of San Francisco
of the State of California for various

York

3.10% i
3.15%
3.15%
3.20%

1974

; 3%

includes

maturity

•

3.05%

1969

in the opinion of counsel will constitute
legally-binding obligations of the City
and County of San Francisco and said City and
County will have power and will be obligated to *. >
levy ad valorem taxes for the payment of said bonds '
and the interest thereon upon all property within

and court decisions.

maturity includes $300,000 Hetch Hetchy Power, and

1960

$210,000 Airport 6%
-

income

100

-loo

"z,

3%
3%

•V

655,000

•

MOO.

•

".655,000

present

1967

1,810,000

2-95% "

payable by the

bonds is exempt from all
Federal and State of California personal
taxes under existing statutes, regulations

City and County upon its

1968

opinion of counsel, interest

2.90%

1965

3%
3% >

-v

1,800,000

-*•'

ind.

purposes,
valid and
'

rcgistcrableonly as to both principal and interest.

In the

2.75%
V.■; 2.80%
V: 2.85%

bonds,

and the laws

$ 1,000

2.70%

1964

,::3%
!-■ 3%,

1,800,000

1963

♦

.VI,795,000

;

November 1, 1958-77,

Charter of the

County of San Francisco in New York City, at the op¬
tion ot the holder. Coupon bonds in denomination of

2.40%
2.60%

1960

3%
3%
3%
3%

1,795,000

1958
1959

5%°/o.-3%'

;

1,795,000

"ue

6%-3%%-37

1,790,000

6%
f
6%
,
5%-4% %'

1,305,000

Rote

-v

$1,305,000

1,440,000

•i'Yield

Coupon

-r

y'-:

These

Principal and semi-annual interest (May 1 and November 1) payable at the office of the Treasurer of the
City: and County of San Francisco, in San Francisco,
California, or at the Fiscal Agency of the City and

$4,000,000 School Bonds—1956, Series A.

$12,000,000 Hetch Hetchy Power Bonds—1955, Series B

•

Due:

1957

Dated: November 1,

Playgrounds and Recreation Centers Bonds—1955, Series A

„

.;•«

$1,500,000 Hospital Bonds—1954, Series B"'' "

:»'V Vi,;
S2 000,000

$4,500,000 Sewer Bonds—1954, Series B

■

Ladenburg, Thalmann & Co.

Dean Witter & Co.

R. W. Pressprich & Co.

Shearson, Hammill & Co.

Reynolds & Co.

of Saint Louis

Shields & Company

Dominick & Dominick

William R. Staats & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

Bank & Trust Company

Model, Roland & Stone

G. C. Haas & Co.

Fitzpatrick, Sullivan & Co.

Federation Bank and Trust Co.
Northwestern National Bank
of

;

Salt Lake City, Utah

Hallowed, Sulzberger & Co.

Crultenden, Podesta & Co.

Wm. E. Pollock & Co., Inc.

City National of ChicagoTrust Company
Bank &

Seasongood & Mayer

Shuman, Agnew & Co.

Stern Brothers & Co.

Thornton, Mohr & Farish

Magnus & Company
A

J. A. Overton & Co.

circular relating to these

bonds

may

Interstate Securities Corporation

Wagenseller & Durst, Inc.

Stern, Frank, Meyer & Fox

Frantz Hutchinson & Co.

Elkins, Morris, Stokes & Co. Freeman & Company Granbery, Marache & Co.

Kenower, MacArthur & Co.
Prescott&Co.
R. D. White & Company Brush, Slocumb & Co. Inc. Davis, Skaggs & Co. Dempsey-Tegeler & Co,

J. A. Hogle & Co.

Hill Richards & Co.

Sutro Bros. & Co.

Walter Stokes & Company

The First of Arizona Company
October 8, 1957

Spencer Trask & Co.

Bruns, Nordeman & Co. A. G. Edwards & Sons
Lawson, Levy, Williams & Stern Irving Lundborg & Co.

Kalman & Company, Inc.

Schatler, Necker & Co.

The Continental Bank and Trust Company

H. E. Work & Co.
t

Ellis & Co.

Trust Company of Georgia

■

Van Alstyne, Noel & Co. Anderson & Strudwick

Ginther & Company

Rockland-Atlas National Bank

Reinholdt & Gardner

Stone & Youngberg

of Boston

Townsend, Dabney and Tyson

Rodman & Renshaw

National Bank of Commerce
Seattle
in Dallas

•

Minneapolis

Green, Ellis & Anderson

First National Bank

' The First Cleveland Corporation
'

Schwabacher & Co.

F. S. Smithers & Co.

A. M. Kidder & Co., Inc.

Incorporated

Provident Savings

Roosevelt & Cross
Incorporated

Kean, Taylor & Co.

The Illinois Company

The First National Bank & Trust Company

Eldredge & Co.

Andrews & Wells, Inc.

New York Hanseatic Corporation

Estabrook & Co.

H. Y. Sattley & Co. Inc.

be obtained from any of the above

Arthur L. Wright & Co., Inc.
C. N. White & Co.
underwriters.

Dreyfus & Co.,
Fred D. Blake & Co,

The Commercial and Financial Chronicle.

(2564)

Bergstrom Paper Company—Analysis in current "Business and
Financial Digest" — Loewi & Co. Incorporated, 225 East
Mason

Dealer-Broker Investment

Street, Milwaukee 2, Wis. Also in the
analysis of Eli Lilly and Company.

issue

Lyon Terry Joins

Lehman Bros. Staff

Boston Edison—Data—Herbert E. Stern &
New

York

5, N. Y.

International

Recommendations & Literature

Also in the

Telephone

Co., 52 Wall Street,
bulletin are data on

same

Telegraph,

and

Associated

Dry

Goods.

Lehman
New
New

York

Burndy Corporation—Report—Straus, Blosser & McDowell, 39
South La Salle Street, Chicago 3, 111.

ciated

—

New York 5, N. Y.

Survey — Abraham & Co., 120 Broadway,
Also in the same bulletin is a survey of

become
their

Cosden

{bo. Mp—Features the Nuclear

Navy; an artist's
conception showing all 21 of the atomic vessels now in
operation, under construction or planned; a table showing
the principle contractors for the ships and reactor components; also mentions the large Swiss and Dutch holdings
of the Fund's shares. Comments on High Voltage Engineering
Company and Foote Mineral Company—Atomic Develop¬
ment Mutual Fund, Inc., Dept. C, 1083—30th Street, N.
W.,
Washington 7, D C.
-

Bonds—Bulletin—Francis

New York 5, N. Y.
Burn ham View — Monthly

Pont

Co.,

letter

investment

Wall

Burnham

—

Company, 15 Broad Street, New York 5, N. Y.
able is current Foreign

Petroleum—Memorandum—Shearson, Hammill & Co.,

York 5, N.

and

Also available is

KLM-Royal

Krnnametal

current

Also available

are

available

—

48 Wall

Japanese

survey

Yamamhi Securities

Company of New York, Inc., Ill Broadway, New York 7,

New York.
of

"The Exchange"

—

Discussion in current issue

Exchange Magazine, 11 Wall Street,

New York

Analysis

—

Sutro

Bros.

circular

Investment

Oct. 10, 1957

are

reports

oil

American

Oct. 16, 1957
.

annual

frolic

and

field

day at the Happy Hollow
Country Club (to be preceded
by a cocktail party, Oct. 9 at the
Omaha Club).

10-11,

1957

(Los Angeles,

Calif.)
Association

panies.Mr.

Stock

Exchange

(New York City)
Security Traders Association of

Metallurgical
Engineers;

oil

com¬

member of the

of
Mining,
Petroleum

and

Association
Geologists; Ameri¬
Institute; Ameri¬
can Gas Association; and the
In¬
dependent Natural Gas Association
of

American

Petroleum

can

America.

has

written

nu¬

articles for oil and gas

merous

in¬

dustry publications.

Continues Inv, Business
PARIS,
Davis
ment

Texas — Dimple Crain
continuing the invest¬

business

Davis

Hum¬

phreys, 605 Lamar Avenue.

(Special to The Financial Chronicle)

PORTLAND,
L.

Kosel

staff

has

Ore.—Mrs.

been

Pacific

added

Betty
to-the

Northwest

Com¬

Wilcox Building.
-

With

(New York, N. Y.)

the

1"'

Copley & Co.

(Special to The Financial Chronicle)

Waldorf

SPRINGS, Colo.—

James H. Ayres has been added to
the staff of

Copley and Company,

Independence Building.

With E. F. Hutton

Astoria

(Hot Springs, Va.)

KANSAS

CITY, Mo.—Henry H.

Cate

the Homestead.

E. F. Hutton &

Dec. 1-6, 1957

(Hollywood Beach.

has

become

affiliated

with

Company, 111 West

10th Street.

Fla.)
Investment Bankers Association
Annual
Convention
at
Holly¬

TRADING MARKETS

Beach Hotel.

Jan. 17, 1958

FLORIDA

(Baltimore, Md.)

Baltimore Security Traders As¬
sociation 23rd
annual
mid¬
winter

dinner

the

SECURITIES

Southern
•

Hotel.

DEPENDABLE MARKETS

Bank, Insurance Companies,

Northwest Production

\Si Florida's

Invest in

Three States Natural Gas

GoldenSjTriangle

Delhi-Taylor Oil

TRADING DEPARTMENT-

Big Piney Oil & Gas
Special Reports

TELETYPE MM51
ALFRED D. LAURENCE!

Request

& CO.

Western Securities Corp.

Security Dealers Association

York 6, N. Y.

larger

Institute

National Security Traders Asso¬
Annual Convention at

Sold

Trinity Place, New

World

Industrials

Trans-Canada Pipe Line & Units
Canadian Superior Oil of California

York

in the Oklahoma

served

later employed by

the

Terry

American'

Northern Ontario Units

Members: New

Consulting

ciation

wood

ing at Beverly Hills Hotel
•

TROSTER, SINGER

He
was

several

Commercial

New York Group of Investment
Bankers Association annual din¬

Nov. 3-6, 1957

Bankers

Oct. 12, 1957

—

been

career

fields.

pany,

New York annual dinner dance
at the Commodore Hotel.

Firms Board of Governors meet¬

Bought

had

War I and

brief analyses of

are

Also available

Field

Investment

Association

Avenue, New York 22, N. Y.

Quebec Natural Gas & Units

Bank

the

from

1957. Previous to his
the Bank,
Mr.

with

—

reports

(Omaha, Neb.)

Nebraska

Co., 625

Currently Active—

retired

(Special to The Financial Chronicle)

Analysis

Terry

specializing in oil and
natural gas.
He graduated from
the University of Michigan with
a degree in civil engineering and

Corporation—Report—Simmons & Co., 40 Ex¬

ner

Oct.
—

Hotel.

—

Madison

same

Quarterly figures —
Company, 16 Wall Street, New York 15, N. Y.
*

Laboratories, Inc.

Sept. 30,

Terry

Lyon

Pacific N. W. Co.vAdds

EVENTS

Hannafcrd & Talbot, 519 Cali¬
Street, San Francisco 4, Calif.
Ten Largest Banks in New York
City —

Allied

letter

Bag-Camp Paper Corp.; Hertz Corporation, Western
Telegraph Company, Republic Natural Gas Company,

COMING

fornia

Bankers Trust

same

:V-.*

.Stonega Coke & Coal, Ayrshire Collieries, and
Peabody Coal
—Boenning & Co., 1529 Walnut Street, Philadelphia
2, Pa.
—

Chase;

COLORADO

13-year period —
National Quotation Bureau, Inc., 46 Front
Street, New York

Tax Free Income

Also in the

Automation Instruments, Inc. and New Cornelia Exten¬

the

Jones Averages and the 35 over-the-counter
industrial stocks
used in the National Quotation
Bureau Averages, both as to
yield and market performance over a

Producers—Analysis—With particular reference

nha ttan

1936.

Barge Line Company and Ohio Brass Company,

•

(now

Report — Alfred L. Vanden
Street, New York 5, N. Y. Also in

discussion of Stocks for Income with

•

Chase
o

association

Stocks—Quarterly analysis of 13 issues

4, N. Y.

t i

The
M

Corporation—Report—American Institute
Management, 125 East 38th Street, New York 16, N. Y.

—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder
showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

Steam Coal

H. Hentz &

sion Copper Corp.
United Electric Coal Companies
Broetk & Co., 55 Liberty

5^ N Y.
Bank

—

Co.—Memorandum—Green, Ellis & Ander-

change Place, New York 5, N. Y.

Strength—Harris, Upham & Co., 120 Broadway,

York City

Union

Turbo Dynamics

Company, 9477 Brighton Way, Beverly
a

Memorandum

Co.—Report—Thomson & McKinnon,
11 Wall Street, New York
5, N. Y.

Hills, Calif.—$2.00.Defensive

The
a

Bank

TorO Manufacturing

—

Market Review—With

Calif.

Industry, Finance Company Common Stocks, etc.
Life Insurance Stocks Are Gold
Chips — Victor G. Paradise
Discusses dynamic growth record of America's Life Insur¬
ance industry with
particular attention to 60 key stocks —
Securities

Department
of

Company, Inc., 300 Montgomery Street, San Francisco 20,

New. York 5, N. Y.—10 cents
per copy, $1.00 per year.
Also
same issue is a discussion of the
growing Soft Drink

Paradise

began his
—

and Chemical Corn Exchange Bank.
Standard Oil Company of
California—Report—First California

*
—

and

Reynolds Tobacco

Union

in the

New

38, New York.

Leisure Time & Common Stocks

joined

Sobering Corporation—Analysis in "ABC Investment Letter"—
Amott, Baker & Co. Incorporated, 150 Broadway, New York

of economic picture

—Nomura Securities Co, Ltd., 61
Broadway, New York 6,
—

Co.

61 Broadway, New York 6, N. Y.
Copper & Brass—Analysis—J. R. Willston & Co., 115
a bulletin on
the Aircraft Industry.

N. Y.

Japanese Stocks —Current information

Glass

Broadway, New York 6, N. Y. Also available is

Exchange Firms, 25 Broad Street, New

Market—Monthy

Illinois

Revere

—

Street, New York 5, N. Y.
Stock

Owens

son,

Bulletin

Tax Exempts—Bulletin—C. J. Devine & Co.,

vs.

Gamble

York 4, N. Y.

Governments

memoranda

Big Piney Oil & Gas.
Procter &

Co.—Cosgrove, Whitehead

Money to Minor Children

— Analysis — A.
M.
Co., Inc., 1. Wall Street, New York 5, N. Y. Also

are

Trinity Place, New York 6, N. Y.
Northwest Production—Report—Western
Securities Corp., 1
Exchange Place, Jersey City 2, N. J. Also available are re¬
ports on Three States Natural Gas, Delhi Taylor Oil, and

Gammack, 44 Wall Street, New York 5, N. Y.
or

since

1 9 4

Industry—Analysis with particular reference

Association of Stock

Bank

the Petroleum

Engineer,

Co., 60 Beaver Street, New York 4, N. Y. .Also available is
memorandum on Youngstown Sheet & Tube Co.
Mine Safety Appliances
Co.—Report—Troster, Singer & Co.,

poration, 120 Broadway, New York 5, N. Y.
Industry—Analysis—du Pont, Homsey & Com¬
pany, 31 Milk Street, Boston 9, Mass.

memorandum

Chase

Manhattan

Also available is

Merritt Chapman & Scott Corp.

Electric Power

Gifts of Securities

Selig

Procter & Gamble Co.

Corporate Bond Market—Analysis—New York Hanseatic Cor¬

—

Inc.—Memorandum—Goodbody & Co., 115 Broad¬

Kidder &

Railway, 3809 Terminal Tower, Cleveland 1, Ohio.
Debentures as a Hedge—Bulletin—Joseph Faroll

Case

appraisal

Liberty National Life Insurance Company
x

Convertible

Co. and J. I.

Co J

Hold" sugges¬

II. II. Robertson & Co.

Energy Review, discussion of 20 sound long term- dividend
payers and a list of the "Favorite Fifty."
Chessie k Her Family — Portfolio of pictures —
Chesapeake &

Co., 29 Broadway, New York 6, N. Y.

—

New York 6, N. Y.

way,

reports on Dow

Ruberoid

"Buy, Sell

Dutch Airlines
Study and
Altschul, 37 Wail Street, New York 4, N

Chemical, Food Machinery & Chemical Corp., YVeyerhauser
Co., Electric Bond & Share, United Corp., Atomic

to Deere

bulletin

list of

Bank)

issue of "Mar¬

Farm Equipment

De Witt Conklin

tions.

Timber

Allied Laboratories and

Also avail¬

Review"—Harris, Upham & Co., 120 Broadway, New
5, N. Y. In the same issue are lists of interesting
selections for high return or appreciation, and a portfolio

—

York

& Ohio

Bulletin

Organization, 100 Broadway, New York 5, N. Y..
Frito Corp. — Memorandum
Rauscher, Pierce & Co., Mercantlie Bank Building, Dallas
1, Texas.
General Controls Co.—Analysis—Dean Witter &
Co., 14 Wall
Street, New York 5, N. Y.
Irving Trust Co.—Analysis—Bache & Co., 36 Wall
Street, New

ket

of "Cross Section" stocks.

—

Vice-

The

Ducommun Metals & Supply Co.

Letter.

Candidates for Dividend Increases—In

Terry,

former

randa

Street, New York 5, N. Y. Also available are memo¬
Phillips Petroleum, K. J. Reynolds Tobacco Co. and
Standard Packaging Corp.

has

Terry

with

President

Exchange have
Lyon

asso¬

14 Wall

Street,

that

firm.

Mr.

Consolidated Edison Co. of New York.
Atomic Leuei

Stock

announced

parties the following literature:

Brothers, 1 William St.,
City, members of the

York

Colgate Palmolive

It is understood that the firms mentioned will he
pleased
to send interested

same

..Thursday, October 10, 1957

One

DEMPSEY-TEGEIiR & CO.

Exchange Place, Jersey City, N. J.
Telephone HEnderson 2-1000

Open-end

phone to N. Y. C. HA 2-0185

COMPANY

§f

INVEST MINT SECUtlTIES

201 S.E. 1st Ave. Miami, Fla.

Phone: Miami, FRanklin 3-7716

Number 5680

Volume 186

The Commercial and Financial Chronicle

...

(1565)

most businessmen!

From

ation

graduated

ing of

sonal

Washington

income

of the News

says:

moon"

litical
tax

fashionable

was

Washington

talk

po¬

about

Probably it
will be just

tern

•

propos¬

Com¬

reduction without

its

nine

was

regard

tax in this

ORADELL,

gressive tax
"Political

name

country has been

proportionate rather than

changed

strategists

the

growth

tax

for

power

period

ing

see

they can't

years;

such

and

financial plight

that

very
;

convincing to

The

proposal

corporatioh

bill

reduce

Eugene
Eichenberg,
Jr.,
has
joined the investment firm of Carl
M. Loeb, Rhoades & Co., 42 Wall
Street, New York City, members
of the New York Stock
as

tax) would stifle
small businesses

would

tax

They

not

are

the

Stores, Inc. (formerly
Corp.)

New York

the

and

Stores

vice-chairman

Committee

(Special to The Financial Chronicle)

ST.

LOUIS, Mo.

—

HARTFORD, Conn.—H.-BrandThomas B. ford Benson and Samuel Blumen-

now with Edward D. thai have become affiliated with
&
Co., 300 North Fourth Putman & Co., 6 Central Row,
street, members of the New York members of the New York Stock

income tax frightens

off

soon

as-

was

earned. Similarly, progressive tax-

Exchange.

Stock Exchange.

Carlisle Bargeron

normal rate en

•

corporate income from 80 to 22%,

October io> 1957

New Issue

then increase the surtax rate

and

(on incomes
also has.

$25,000) to 30%.;

over

bill

pending which

would increase the surtax rates to

$31,000,000

31%.

Congressman Wright Patman has

pending
and

bill which reduces the

normal

corporation

rate

it imposes a
to

22%

exempts the first $100,000 of

taxable income from surtax.

53% for

tax

Then

from

range

1Q%

6%, 4%%, 3%, 3.20% and 3Vi% Major Thoroughfare Construction Bonds, Scries G

maximum combined

(Payable from Selective Excise Taxes)

normal and surtax of 75%.
More

intriguing, perhaps, is the

„

Due March 15 and September 15, as shown below

Dated October 15, 1957

bill by Senator Sparkman of Ala¬

Principal and semi-annual interest (March 15 and September 15, first coupon payment date March 15, 1958) payable in Columbus, Ohio; New York,
New York; Chicago, Illinois; or Cleveland, Ohio. Coupon bonds in the denomination of $1,000, registerable as to principal only or as to both principal
and interest. Bonds initially issued as coupon bonds or registered bonds-may be exchangedforfully registered bonds of the same maturity, or coupon
bonds, as the case may be, without expense to the holder thereof. Subsequent exchanges or registrations shall be at the expense of the holder thereof.

bama,

providing for a graduated
corporation income tax, starting at
5% on the first $5,000; going to
18%

$25,000; 38.25% as com¬
with present rate of 46.5%.

pared

.'■•v

$100,000: 49.25% as compared
with present rate of 50% on $500,on

000;

50.62%

on $1,000,000, and
compared with 51.35%
$10,000,000.
-

51.80%
on

These Bonds, to be issued under

All of these received sharo criti¬

cism

from

the

Senate

election in said

Finance

Colorado, also
tax

gives

the estate

bills.

inheri¬

propose

Highways on the state highway system, will be, in the opinion of counsel, together with Series A, B, C, D, E
presently outstanding, and all other bonds hereafter issued under authority of said Section 2c, payable solely from
derived from fees, excises or license taxes levied by the State of Ohio relating to registration, operation or use of vehicles

and F Bonds

Sparkman and Congressman Hill
tance

the provisions of Section 2c of Article VIII of tire Constitution of Ohio, as adopted at the general
the purpose of providing moneys for acquisition of rights-of-way and for construction

November 3, 1953, for

state on

and reconstruction of

Committee at the last session..

Statutes, Restitutions and Court Decisions
Exempt, in the opinion of counsel, from all taxes levied by the State of Ohio or any
tax ins subdivision or district thereof

51.4%

present

in the opinion of counsel, from Federal Income Taxes under exist ins

;

with

compared

Interest exempt,

The

present

months

moneys

law

the

which to satisfy inheritance taxes,
with Internal Revenue given dis¬

public highways

of the bonds

or to

fuels used for propelling such vehicles and provision has "been made by law of the State of Ohio for

sufficient amount of such fees, excises or license taxes each year to pay the interest on and
becoming due each yfcar, without other legislative appropriation.
;

setting aside of

cretionary power to extend this to
Amount

the 10-year period manda¬
tory and then give Internal Rev¬

additional

dis¬

years

1,035,000 6

merce's

these

tax

bills

authority

very

Com¬

tells

"innocuous"

are

Internal

cause

Chamber

be¬

has

Revenue

been

in giving hardship

generous

10 years.

ca^s

The NAM is

widely pro^otirw

biU

1,035,000 3

';.

This

sonal

income

would

the

15,1965 3.10

1,035,000

Sept. 15,1965 3.10

1,030,000
1,035,000

Mar. 15,1966 3.15

1,035,000 3% ..
1,035,000 3%

Sept. 15,1969
Mar. 15,1970

100

1,035,000 31/4
1,035,000 3%

Sept. 15,1970

1,030,000 3.20 Mar. 15,1967

100

1,035,000 3%
1,035,000 31/4

1,035,000 3.20 Sept. 15,1967

100

1,035,000 3%

Sept. 15,1966 3.15

The First Boston

Under

this

schedule,

from

$2,000

20%

then to

would

the first

the

income
be

y^ar

18%, 37%. 16%

White, Weld & Co.

"irst

100

100
Mar. 15,1971 3.30%
Sept. 15,1971 3.30
Mar. 15,1972

3.30

Sept. 15,1972 3.30

A. G. Becker & Co.

19%;

and

combined

re¬

Florida,

has

joined

Pressprich & Co.

Dominick & Dominick

Company

Dean Witter & Co.

Bear, Stearns & Co.
•

■

;

•

Paine, Webber, Jackson & Curtis

(Incorporated)

Bache & Co.

Francis I. duPont & Co.

Phelps, Fenn & Co.

William Blair & Company
Estabrook & Co.

J. C. Bradford & Co.

First of Michigan

Corporation

of"

rate

Ira Haupt

& Co.

Laurence M. Marks & Co.,

Herlong of
with Sadlek

in this bill.

John Nuveen & Co.

& Co.
-,

R. W.

Glore, Forgan & Co.

Equitable Securities Corporation

R. S. Dickson & Company
Incorporated

F. S. Moseley

groun,

50%, 48%, 46%, 44% and
resoectively, over the fiveperiod.
Sid-

A. C. Allyn and

Incorporated

Blair & Co. ' Alex. Brown & Sons

Hornblower & Weeks

Congressman

McDonald & Company

Incorporated

15%.,

Corporation taxes would be
the

Merrill Lynch, Pierce, Fenner & Beane

Kidder, Peabody & Coi

Braun, Bosworth & Co.

The Ohio Company

...

Incorporated

47%, 40%, 33% and 26%.

from

taxes

reduced

the $22,000 to *28,000

duced

Incorporated

& Co. Inc.

Drexel & Co.

Smith, Barney & Co.

Ilarriman Ripley & Co.

Goldman, Sachs & Co.

taxes would be reduced from 59%

to 53%,

Corporation

B. J. Van Ingen

Lehman Brothers

Ilalsey, Stuart & Co. Inc.

nine years,

over

bracket of oersonal

year

3.05

are offered when, as and if issued and received by us, subject to prior sale and approval of legality by .the Attorney General of the State of
by Messrs. Squire, Sanders & Dempsey, Cleveland, Ohio. This is not an offer to sell these securities, said offering is made only by means of
official statement, copies of which may be obtainedfrom such of the undersigned and other underwriters as are registered dealers in this State.

Blyth & Co., Inc.

budget

five-year period, all told, could be

42%,

15,1964

100

There would

taxes."

imbalance

sp'-cad out

52%

100

per¬

wb Eh event that year's reduction
could be deferred for a year—the

15,1963

15,1964 3.05%

Price

$1,035,000 3.20% Mar. 15,1968
1,035,000 3.20
Sept. 15,1968
Mar. 15,1969
1,035,000 3%

Ohio and

scheduled reduction each year
the President certified it

1—$0

100

These Bonds

unless

t -

15,1963

(Accrued interest to be added) •

" /,;
\ "
•• •- ...
five-year program of

reducing both corporate and

$1,030,000 3% Mar.
1,035,000 3
Sept.
Mar.
1,030,000 3
1,035,000
Sept.
Mar.
1,030,000

Thev have

got about 100 organizations behind
it.-

Yield
Due

Rate

Amount

Price

member of the House Wavs

and Means Committee.

15,1959
15,1960
15,1960
15,1961

Due

Rate

Amount

Yield

by Ren. Sadlek of Connecti¬

cut.

2.60
2.70
2.80
2.90
15,1961 2.90
15,1962 2.95
Sept. 15,1962 2.95

Sept.
1,030,000 6
Mar.
1,035,000 6
Sept.
1,030,000 43/g Mar.
1,035,000 43/g Sept.
1,030,000 3
Mar.

cretionary extension.
The

Due

Rate

$1,030,000 6% Mar. 15,1958 2.20%
1,035,000 6
Sept. 15,1958 2.40
1,030,000 6
Mar. 15,1959 2.50

make

enue

the principal

Yield

10 years in cases of hardship. Both
the Sparkman and Hill Bills would

Hemphill, Noyes & Co.

W. II. Morton & Co.
Incorporated

(Special to The Financial Chronicle)
- -

Fitzgerald is

„rmila

drained,

the

Two With Putnam Co.

pated additional income would be Jones
graduated

Real Estate Board of New York.

Joins Edw. D. Jones

investment

T^o+ori

me.

real

division of C & C Super

dis-

hardly be justified if antici-

can

Mr. Eichenberg was formerly
vice-president and house counsel

Paine, Webber, Jackson
& Curtis, 111 Pearl Street.

growth ancL (expansion on

all levels, because new

Exchange,

consultant

estate, it has been announced.

premium on smallness
tax nenalty on bigness." -

graduated

special

for many years. He is also a mem¬
ber of the faculty of City College

(Special to The Financial Chronicle)

tax

courage

its

to Nedick's

has

pending

Ar-

a n s a s

the. scheduled postponement

had to be deferred.

Senator Ful-

Paine, Webber Adds

with some¬
thing:
/ ' : /
bright

firm

J. —The

Building, 390
Road, has been
Common Sense In¬

vesting Company. L

behind

these bills hope to drive a wedge
between business groups ..
\
"It (graduated

of The Income

Carl M. Loeb, Rhoades

Kinderkamack

a pro¬

comes

Chamber

Administration in power admitting. "A

Adminis¬

tration

awav

als until and if

the

jump.

Now Common Sense Inv.

•

Eichenberg, Jr. Joins

HARTFORD, Conn.—Martin W.
changing economic conditions; into larger units and deter natural
they can't see Congress giving development and progress by plac- Cummings; has been added to the

but it will

these

discourage the start¬
enterprises."

talk from now,
on,

officially says they "studi¬
ously refrain" from commenting
on this bill.
Unofficially they pro¬
fess to think it is funny and im¬
practicable in that it fixes a pat¬

reduction.

center

nessmen

"Traditionally the corporate in¬

merce

"little

the

new

Frankly, any bills by Fulbright,
Sparkman or Patman make busi¬

The U. S. Chamber of Commerce

come

The

Before the Russians in their per¬

launched

horrible

thing, and to apply it to the cor¬
poration tax would be equally

By CARLISLE BARGERON

way

tax

would

horrible.

Ahead

verse

They think the
principle 'in the per¬

W. E. Hutton & Co.

Reynolds & Co.

Lee

Higginson Corporation

The Weil, Roth &

Irving Co.

The Commercial and Financial Chronicle

(1566)

The

Equipment

Overcoming Financial Squeeze
In the Airlines Industry
'

which

those

pro¬

are

that

1956

during

the

just over 8%. Of
the 200, three-quarters were mod¬
ern four-engine piston and turbo¬
aircraft,

aircraft.

prop

Even those figures

the

understate

extent

the

re-

A number of
operators were introducing new
equipment in the winter months
of this year and by now the pro¬
the challenge of the jet age at a cost exceeding the aircraft
portion of modern
four-engine
now operating.
Attributes the airline troubles to rising costs,
equipment is higher. Thus there
extensive capital commitments and frozen fares, and asks not
will
be
quite a change in the
for a great fare increase but "just a few per cent at most" to
equipment picture even before the
jet aircraft come into operation.
provide margin needed to assure a soundly progressing industry
Although the latter are not ex¬
I always like to start by a re¬ senger transport we perform last pected to arrive in numbers for
view of the immediate past — the year was equivalent to carrying a couple of years, a large propor¬
results of the year 1956. The fig¬ all the people of Ceylon to Aus¬ tion of aviation resources is being
tralia. The likelihood of this hap¬ marshalled to pave the way for
ures for that year show as yet no
evidence

remote that it means
including the
Ceylonese and the Australians.
pening is

little

the

of traffic

rate

and

increase

from what

man

continued
without check.

78,-

000,000 pas¬
were

carried by
lines

the

school

air¬

world's
and

dle

we
Wm.

tourist

haul

in 1959. Thanks

of long

the

average

passenger has been travelling fur¬
ther and the 78,000,000 passengers

accounted

which have been done
traffic.
There is

transatlantic

traffic

for

other clues as well in

are

the surveys

expansion

rapid

the

East; and so on.

Hildred

100,000,-

mark at the latest
to

teachers through the Mid¬

There
Sir

should cross
the

clues to the hu¬

some

saw

accomplishments of our in¬

76,000,000,000 pas¬

one,

I recollect, which enabled us
an
approximate picture

draw

the.2,000,000th tourist passen¬
ger across the North Atlantic. We
found that he was young, under

40; that he was travelling both for

kilometres. Both these fig¬ business and pleasure; and that he
represent a 15% increase was not
rich, for his income was
above 1955. Slightly smaller rates
$7,000 a year or less; and that he
of
increase
were
registered in
was
probably not travelling with
cargo traffic, which rose 13%, and his wife.
We also found that if
mail, which rose 8%. Cargo has this milestone had been reached
passed the 1,500,000,000 ton kilo¬ during the peak travel period, that
metre landmark, although its rate
passenger might well have been
of expansion is still rather lower
female, even younger and with an
than we had hoped and lagging
even
smaller
income.
We
also
behind that of passenger traffic.
found that these travellers from
As far as mail is concerned the
the U. S. A. left about $900 in
figures speak for themselves. We
Europe.
have passed the 400,000,000 ton
All these clues point to the most
kilometre mark, but for the time
significant fact about the service
being seem to be making little
we
render: that it has progres¬
headway as regards volume.
sively been brought closer to the
On the North Atlantic the re¬ actual experience of vastly great¬
sults are even more spectacular. er numbers of people.
We have
senger

ures

operations,
carried
785,000

scheduled

1956

Members

LATA

passengers, 75% of them tourist. A
further
50,000 were carried on

charter

flights,

total

835,000

making a grand
and representing

increase of 20%

the

over

pre¬

This rate of expansion

vious year.

There is

their introduction.
mendous

the

burst

talked for years

all the

and

ventory of the aircraft ordered by
the airlines and the money they
These figures

will need for them.
become

out

date

even

the

day they are written and will be
more so by the time my words go
on
record.
But two comparisons
might

the

useful:

aircraft on

order exceed in value those which

airlines

the

already operate; and
approximate cost is roughly

their

equivalent to current annual air¬
line operating revenues. But these
comparisons do not reveal much,
As

indication

burden

the

financial

their purpose. As a reflecthe coming revolution in

serve

ti6n

the industry they may

air

transport, they

difficult

are

inadequate.
a
really

find

striking expression of what the
jet age will mean to the world. It
is easy enough to talk of six hour
transatlantic

crossings

and

when

shrinking 'of
at

are

into

loss

meaning¬

reflect

which

terms

ther

try to convert this

arithmetic

simple
ful

because

the

fur¬

globe,

the

similar

has ever taken place in
Therefore, instead of
peace time.
speculating on the metaphysics of
the shrinking world, let me turn
change

titude.

This

point at which
This is important for the air¬ to ask ourselves, as many people
000
passenger mark
next year.
lines, for it means that we are outside the industry are asking,
Cargo carried has nearly reached
the airlines have ordered
the 20,000 ton level while mail is tapping a larger market; but it why
is even more significant, for hu¬ these
big,
expensive,
turbineover 8,000 tons.
A word of cau¬
and why we
tion should immediately be
at¬ manity. It means that new mil¬ powered aircraft
lions of people a year are being spend so much time and money
tached.
The booming North At¬
touched by the magic of flight, preparing for their introduction.
lantic traffic has brought with it
that they are more aware of what
It has always been a primary
unusually heavy winter loads and
a
small place this world is and aim of the airlines to
favorable load factors, but a large
give the
how so much of it can be fitted
travelling public better and faster
proportion of this traffic was ac¬
by immigrant and

traffic

cursion

carried

well below normal.
mean

the

having;

traffic

the

than

rate.

that it takes

arithmetic

the airlines
Now

that

are

the

worth

not

was

contrary, in the
passenger is wel¬

off-season every
even at a low
mean

rates

This does not

come

does

ex¬

find

But

lot

out

how

doing.
statistics

transport have grown

air

large, it

is important to remember the hu¬

manity

which is at the heart of

these figures, and spend a moment

untangling
maze

the

people

of passenger

kilometres.

is not enough to say
.

the

from

that the

pas-

* Annual

l$th

Report by Sir Hildred at. the
annuel
General
Meeting
rf
the

I A T A, Madrid, Spain, Sept. 9, 1957.

into the

horizons

ual mind:

of the individ¬

And it

that the

means

barriers of isolation and mistrust
between

just

for

crumbled

all the
thank

can

much

credit
Provi¬

has

hap¬
pened because standards of living
are rising, as well as because air¬
line
fares
have
steadily
come
down.

Yet there is much

cooperate

service.
these

can

good

Just

aircraft

what, then, will
give the traveller

that he has not had before?
For
much

claim

that

have

more.

cannot

this.

dence

peoples

little

one

thing, they will have
range.
Non - stop

flights between

many

fic

become

centers

will

world traf¬
common¬

travel

our

friends in the

and hotels, assist
by giving the British tourist the
largest amount and very longest
trip possible for his £ 100.
agencies

These

where
at

minimum.

turbulence

and

storms

combined with
greater range, will cut travel¬

powered
its

ling

They will be vi¬

bration

free

In other words, they will

and

theyA will

the
most

enormously

businessman

and

bonus

precious commodity

give

in
—

his

time.

will be^ provided

capacity which

by the new jets. I believe that, '
assuming the general economic
situation

seen

good, there is no
capacity.
many
forecasts of

future traffic

growth and most of

have

them

to fear any excess

reason

that for

indicate

seem

time at least there will be

ease

lines
do

capacity which will only
the jet fleets of the air¬
into full operation.
I

age

short¬

come

think that

not

remain in

will

aways

state of under-capac¬

give the passenger

ity, but surprisingly enough, year

ride than

after

a far smoother
anything which has been

and

available to him before.

Summing it
the

up,

I would say that

and comfort of
transports will bring

speed

range,

these

new

about

one

of the most significant

advances which has ever occurred

in the history of

used.

times

ated

being well, the first of the

large jet aircraft will be coming
into service within the next two

will have the facilities for the

aircraft
these
will

operate.

points
not

in
.in

say

tance

since

lated

and

the

closely
by

now

need

aerial

navigation.

some

the volume of traffic and its

areas

mixed nature will require a dras¬

revision

tic

existing

procedures. In other
be important, not to

facilities,

but

which

those

control

it will
devise new

areas

make sure that
have already
been

recommended for installation and
are
envisaged' in ICAO regional
plans should actually be installed
with the minimum delay.
There
will
further
be
the problem of
making sure that the airport run¬
ways and terminal facilities will
be adequate to take the new size
aircraft and the higher volume of

traffic.
All

;
changes

these

the

cost

think it would be unreasonable to
argue

that the airlines should

pay

In fact, as things stand,

nothing.

they already pay plenty.

Aviation

is their business, their source of a
rather
precarious existence and

they would
this

the

volume

not have undertaken

tremendous

market
survey
discloses
people actually travel
and how the currently heavy vol¬
ume of traffic is accounted for by
few

frequent journeys of
of

touched

potential and how much
be done to stimulate

could

world traffic. :-r

;

the

stimuli

mended is
of

most ;to-be

The

travel.

peak

very

beginning

additional

public

cheap

air

taken

was

services
of

within

$5,000,000 jet as if it were a new
bicycle.
Even one jet
aircraft
special maintenance

necessitates

facilities, maybe a new base or
a new hangar, extensive training
of ground and airborne personnel,
complete replanning of ground
handling facilities and many other
changes in airline organization,
all of which begin costing money

and

which

be put into
on

costing

for many years afterwards.

should

not

surprised

if the

secondary expense of putting jets
into operation were not in the

long run equal to their original
purchase price and that, of course,
excludes the actual operating co§t
of the aircraft.

almost

change

the extent to which airline traffic

tions

the

pricq

tremendous

travel

supported by theoretical proofs of
how this could be done profitably.
I do not

vious

imply that all the
reductions

fare

have

profitable. We have had
and

have

effect

pre¬

been

successes

failures.

had

traffic

The

particular

could

fares

al¬

not

with accuracy.
Taking the industry as a whole,
we
have kept our heads above
water, living off a narrow and
precarious profit margin. Yet now
ways

forecast

when

are

further

about to embark

the

step

policy of
mass travel and we
are planning
for the jet age, we are being faced
a

deterioration in

with

cial

position,

our

finan¬

resulting from a
rising costs, ex¬
capital commitments and

continuation
tensive

but

are

few

financial

great

squeeze.

increase

Finances

Airline
Let

few

start this section with

facts

airline

about

finances.

ICAO prepares an es¬
timate of the operating profits of
Every

year

the world's airlines.

tion

derived

The informa¬

from

figures

sup¬

plied bv the airlines through their
governments
to ICAO, each in
own currencies.
These fig¬

their

then

are

ures

converted

into

added together, reduced
far as possible to a common set

dollars,
so

definitims

the world.

based

and

presented

Since these figures are

currencies and

many

different accounting systems, it

is
surprising that early estimates

not

have

revised

not be certain of

the

order

and

one

can¬

anything except

magnitude.

therefore without any qualms that
I tell you

about the adjustment in
estimates which I

the provisional
that

profit
lines

vised

be expected to-grow in line
the

trans¬

international

the

picture,
inevitably gave rise to wide¬
spread demands for further reduc¬

The next question to consider is

with

tourist
couple
world¬

and

quoted last

Growth of Traffic

may

for
re¬

step

im¬

penditure connected with the reequipment
program
is
by
no
means, confined
to the purchase
Of new aircraft. One does not buy

service

great

introducing

great

the

gave

appetite
a
less

the

became

This

formed

which

years

wide.

travel

basis.

stricted

the off-

and

revenue

travelling

portance, is that the airlines' ex¬

can

al¬

This brought them

periods.

the

fundamental

have

airlines

realized this and have con¬
sistently ever since the end of the
war
championed the policy of
cheap travel for the masses..; At
first they merely offered reduced

ways

These

recom¬

reduction in the cost

elements

■

It cannot be denied that among

is often forgotten, and I am bring¬
it

nu¬

great is the un¬

frozen fares.

because

small

international; travellers.

shows how

expansion pro¬
gram without the belief that the
risk was worth taking. But what
ing this out at the

gener¬

every

how

reduction

will

whenever money is
involved, problems arise and long
debates as to who should pay.
I
and

money

new

approach

problem of air traffic control

and

is developed it

area

fares in the off-season

much

re¬

function

impor¬

immediate

new

order.

are

jet age is not

facilities

take

cannot

other.

the
that

of the

order

they

evident

Let

reverse

one

without

the

we shall
hope that

believe that

shifts.

travel

the

that

by other regions. Yet despite
steady expansion of traffic

This

have the traffic and

find

becomes the source of an increas¬

cleus

Facilities for Jet Operation

years.

new

because

interest

each

reduction

nomic, of their introduction are
properly. in phase — they should
give the public this significantly
improved service at a lower price
than has heretofore been possible.

All

This

goes

focus
As

events contradict us
that more could have

year,

show

been

ing volume of traffic without any

transportation.

Finally — if all other aspects,
technical, : commercial and eco¬

aircraft,

hours

are

quieter.

money

which have been so dis¬
turbing to the passenger, should
all but disappear.
I have been
flying between London and New

comfortable, too.''They will
really -fly
above
the * weather,

to refuel,

stops,

will

before the aircraft

Technical

make; the"
f

vehicles

new

often in
the middle of the night and purely
place.

with the trend,
as well as supplement it.
It is a York and Montreal for 20 years.
good thing, for example, that the It is only very lately that one
U. K. feels it can afford to give files non-stop; and it is a jo v.
its people £100 a year to travel
For another thing, the vastly
in dollar areas.
We should, in co¬ increased speed of the turbineoperation with

will, in effect,
globe 40% smaller.

round-the-world trips in 48 hours.
But

introduction of jet
the air routes of the

world

allied indus¬

designed to make sure that

tries

the

about putting air
transport within the reach of the
average man and women.
Well,
we have done it.
Flying is not a
o the less fanciful and more im¬
luxury for the few rich and great]"
mediate problems of the jet age.
it is part of the daily life and
common
experience of the mul¬
Why the Jets?

will enable us'to reach the 1,000,-

counted for

transports

governments,

manufacturers,

airlines

tre¬

activity among

jets of the future will come
into operation at the right time,
that they will function efficiently
inherent in the flight of a surgeon
and
economically and that the
within Africa to save a life; a
Scottish
grandmother's flight to ground facilities, both technical
and commercial, will be ready for
see
grandchildren in Vancouver;
them when they arrive.
the reunion of an Indian family;
I do not propose to give an in¬
the grand tour of two American

that ex¬
pansion has

sengers

anyone,

dustry in "Song of the Clouds" at
the last AGM—the human values

year,

In 1956,

this

know

equipment program.

that the

says

expecting in

fleet
IATA Members has grown by

200

squeeze." Despite substantial traffic increases, the Director
reports, the deteriorating airlines7 financial position is occur¬
ring when it must find unprecedented amounts of new capital
to finance its turbine-powered equipment program and meet

decline in

which includes aircraft cur¬
rently coming into operation and

and the future, Sir Hildred concludes "we have no
turn, and we are caught in the great financial

the present
room

president of one of the man¬
ufacturing
companies
puts
this
speed advantage another way: he

gram,

contemplating

Looking at the airline industry's immediate past,

year

re-equipment

airlines'

the

news

International Air Transport Association

Director General,

real

couple of years' time. The fig¬
ures for IATA carriers alone dis¬

HILDRED*

By SIR WILLIAM P.

The

Thursday, October 10, 1957

...

year.

time

was

1.1%

figures

ICAO estimated

that

margin

of
in

the

operating
world

1955.

indicate

Continued

air¬

The

that

page

re¬

this

Number 5680

Volume 186

The Commercial and Financial Chronicle

...

(1567)

marked

America and the Developing
Far East Economies

is doubly impressive when
appreciates the brief span of
time involved.
\
''

Chairman, Board of Directors,

barked

City

proving

Interdependence of the Free World/and essentiality of Free
West

This

the political and economic health of the
stressed by

themes

two

are

Mr. McCloy who predicts

•

compared to the post-war European experience, and
.

;

not

Asia

.on

•'

Plan

•World

the

field

have

had

with

ence

reasonably

experi¬

some

and

are

com¬

mon

John

ml
many

McCloy
•

5'draw

back

projects
problems

that

lands.

again in
in

ruin, industries destroyed and
countrysides desecrated, and com-

pare that memory with, the conditions in many of those areas to-

day, it does«seem that a miracle

„

detailed lessons from/.has
been y wrought a-and v major
experiencebut rather I progress made.a Certainly, in the
would like to pursue a general light of all the very real accom-

'-4

itt

ort'fl

oU rtttl/J

r\n

realization

should

(V»

the

considered'' manageable.

often

here

hard

America

the

for

average

areas

Than
the

far

can

the

dif-

~whiclT

one

nations

con-

real precedent It is inevitable
then—and I think we must bring
ourselves to realize this—that in

rvvt/I

end

L rt-FL

nLl/\n

visitm® Britain

E^st

1\/T4*-3 1

States played a not

T?a1

™

GCOriSbTUCtlOIT

countrief

^aPa

.and

Ti J: *
J
Unhapp y
^

Pacific.

Hf*ht

the Philppines and
«
southeast Asia, which I have always regretted, but I hope before
.long to remedy this. I was on an
mission

was

then

fare
of

ever

-and

States

for

F.nrone.

re¬

None

our

appre-

VJl

with

„„xx

ol(X.w

eoonornip

today

Communist

Let

ining closely the example of the
lands.

Union and China sit right in the
stances of what I have in mind,
backyard of the nations of southToday some in the West say that east Asia. These nations of southgovernments in the East are try- east Asia are embarking on what
ing to do too much — that they for them is a radical departure—
must
cut back
on
development an effort to guide and speed up
programs
if inflation and self- economic growth in their respecdefeat is to be avoided. Those of tive lands. It would be surprising
you
who
were
in
Washington Indeed if they did not examine the
have heard this stated more than Soviet and China experience and
once.

Yet

compare it with that of the West.

must be fully sen-

one

sitive to the tremendous pressures

that exist in the

Soviet-China

countries for

new

Efforts

tangible

the way

of cutting back programs,
so

course

and

which,

often

•

t 1

agree

would

Quite

H /T'

? -i

crease,

population

believe you will

great

from

apart

significance,
vari-

political

the Soviets have deliberately sought to build a very heavily
weighted industrial base—one designed to support a great military

T71'

potential rather than the advancei

Acd

exceeds

holds

ances,

nance of Pakistan, when he stated
"nr»l
nonnnmin rfr»rktxrfVi cn*f_
that "unless economic growth suf-

ficiently

which I

ference

recommended

doubt,

•

* ji

ment of the individual.

in-

gut

the consequential economic
and political frustra-

here

let

Continued

stagnation

add
on

offer to buy

any

circumstances to be construed as an offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.

$25,000,000

grow

The Columbia Gas

the

not fully

are

the United

System, Inc.
Due

Dated October 1, 1957

grasped

Price

States.

new

October 1, 1982

100% and Accrued Interest

nations in Free Asia, and now

recently

Africa.
These
life as an

;

Copies of the Prospectus may be obtained in any'Stale in'which this
is circulated from only such of the undersigned or other

nations have sprung to

embodiment

J the

their De0Dle

announcement

aspirations of

Freedom and

dealers

bet-

l^eir Pe°Pie*: r reeaom ana a nei

brokers

may

lawfully off-er these securities in such State.

ter Way of life are universal objectjves
and
governments
are
to
find
a
way
to

was

Jtruggli'rig

•

Merrill

White, Weld & Co.

Lynch, Pierce, Fenner 8C Beane

4hai

| avoidable
In

what

Now

nrp<;tifjp

place

was

perhaps

immense ' achievement,

the extent of which

un-

has in part occurred,
of prestige we hear of

propaganda organs of one of r some areas, and a grievous defeat
who
was
formerly allied for the forces of free government

those
with

in victory.

was
■{

♦An address
*

Far

-and

by Mr. McCloy before the

East'American

Council

^iawr?

Commerce

industry, N. Y. City, Oct. 3,1957.

suffered

' matter

how
J

But no
sheet is
all WOUld

balance

believe
.

•

China.

the
.

A. C.

A. G. Becker 8C Co.

Allyn and Company

Equitable Securities Corporation

Incorporated

Hornblower 8C Weeks

Laurence M. Marks & Co.

Phelps, Fenn & Co.

Hayden, Stone 8C Co.

Salomon Bros. 8L Hutzler

sorae-

are

times inclined to overlook. Let us
not forget the internal strife that
beset so many of these lands, nor
the agonies of divided people that
gripped Korea and Viet-Nam. We
have to acknowledge defeats and
disappointments along the way..
The issue is still finely drawn in

dissatisfaction, both at home and
abroad.
In
place
of
sustained
hopes we have considerable disI content and doubt. This is all
quite apart from the invectives
"which so incessantly flow from
the

society with basic stability has

been

agree that, it portrays a record

Soviet

The

cite only one or two in-

5% Debentures, Series I Due 1982

inevitably set limits to his action.

™th the recons ruc-

many

felieitv

tries in the East might be exam-

NEW ISSUE

particular need

and

are

that too

ciation of the
other
fellow's
situation, and the conditions that

econ¬

and

f ghte:
g
to any visitor, from that country
The maze of problems
and the acbjeve them,
pyramid of hopes were stagger-.
ing. Even in the emotionalism of
- Again,
many of these nations
-victory it was painfully apparent
been born out of trial and
•that no
country could possibly tr.lbu'atlon^™e very restoration
■fulfill
those
hopes or maintain
and the establishment of
help that it

from

was

United

deeper

refer to the establishment of great

■

the

it takes to show definite progress.

The

it.

hat

even

then as high as that
of any nation at any time in his•torv.
So many people* looked to
•

cated the problem is and how long

Jion; and perhaps not unrelated
to it, there came a further devel~ °nG Wlth lar"reaching
and
profound
implications that

tached to the United States that I
suppose

°
..

rifying because the hopes and
aspirations which were centered
on
this country were
as wide¬
spread
as
the countries
them¬
selves, and as broad as the popu¬
lations. There was a prestige at¬

flourish

can

terrifying

respecting the United States. Ter,

rasp

world.

market,

unanimity of thought and feeling

This announcement is under

perspective of

underdeveloped
Europe's
supplies
and
eqU1pment"they can draw in ex-

jancjs

But wher-

-absolutely

the

without

went at that time there

one

was

visited.

realization of how compli-

essential to the welAsia as wall as to tVlA rest
well
the w
AciQ

omies

government.
The atmosphere of
destruction and war hung aoout
each place one

with

urge

was

£
of

fa¥.0

thp

covery

survey

jus"
I11T16

history will show us to have been

did nui get to
not get tu
uiu

official

nomic strength is a very complicated and difficult process indeed,

highest priority, and
the

the

across

.re-

xlist

l3SK

as having
countries, Pakistan India, Burma, .j believe the
Pakistan, India Burma
that
China,

this

role

r°Pe—a role of which we are

counSfes fex-

i-ha

Western

these,
that we all look at
spirit of tolerance and
as we

—

being placed on
the construction of heavy indus¬
try, and not enough on the expan¬
sion of agriculture and light in¬
dustry.
The suspicion is voiced
that such programs are being in¬
fluenced by the Soviet experience,
or
by too close an association of
the latest type of steel mill or oil

construction in both Asia and Eu-

Germany

France

European
Dnnpia\

Role

inconsiderable

'"'/went entirely around the world,
the

The United

first trip to the Far East.

and,-other

But

properly balanced

much emphasis is

Syed Amjad Ali, Minister of Fi-

thing I have learned is that
%the matter of aiding other coun¬
tries and peoples to achieve eco-

Years Ago

My mind goes back to 1945 and
my

would

both sides.

One

;

'/mitt-.

Proud
;

opment programs in the East
not

plishments in the postwar period, this whole process of growth and safer. But we in the West can
it seems that the disparity,,which change many false starts, many scarcely be surprised at a reaction
still remains between hopes and disappointments will be suffered .nke that invoiced by the Hon.

subject in the
hope that we can view it in a
proper prospective. Details, techniques and methods may then be
more sensibly applied.
!
'
the

States

those who

are

instances devel¬

some

evidence
of
economic
In looking at the Soviets and
'improvement. A rising tide of ex- China however it is well always
pectations has been set free in to keep in mind that there is a
faces a formidable task in organ- many of these countries, capable fundamental difference between
izing its assistance to the East— 0f engulfing governments. There :the objectives of our society and
are
severe ' political
problems in those of the Communists—a difa task again for which there is no
—- ■■
- ■

any

approach

coopeiation

(

things. They are required to experiment, to develop new institutional
arrangements, break new
paths if the job is to get done. But
the need for experimentation and
path
breaking is
not
confined
soley to them. For the West also

that
?

United

essential to

pos-

J do not wonder that the

fronted

mind the cities laid

programs

again, there

feel that in

refinerv

ficult

the early trip and picture

the

advance

the West need is

other

achieve-

Then

economic

Above all, what both the East and

m e a s u re

Nevertheless,

hopes of

postwar period.

capable

it is

them in

expected
compared

I do

wish

not

......

areas

among all free nations.

I must confess that when I look

develop-,

ment

being

East,

are

fevered

Far

politically
and
economically,
Moreover, there is agreement all
around that the job can not be
done
alone, but will require a

v
<

ment.

re¬

habilitation
an

rather

mistakes

Europe. in
can close our ears to the rasptheir postwar reconstruction. The
ing notes which arise from the -nations of the East have not been
cold war propaganda cacophony, abie to fall back, as for example
we should be able in the light of ".
Germany was, upon old norms,
past results to determine what is old ways of doing and making

commer-

cial

accomplished
the

immediate

the

all difficult to put one's finger

^present

activities in
the

out

making
sible.

possible to single out a number of
points of weakness. And it is not

economic development in Asia and

with

banK

down to

days

recognize, as do
Asia, that the free

citizen to realize that the task

the

and

what may reasonably be

lease, the Marshall

through lend

.what has been accomplished and

is that in one way or another

,say

better

far

which

wholehearted

carried

ation of the advanced countries in

now

countries.

really
position to judge
we

people.

and

not to

development outlays sig¬
nificantly, but to seek the cooper¬

look at de-

programs

would

wide

urges con-

However, today

expert in any sense
itself.
The most I can
an

are

Certainly when
velopment

realistic

approach

reduce

Complexity Involved

em¬

The

wiser

foreign assistance adopted by the

with

course

West

tries.

under¬

gov¬

all

course—a

their

so-called

bound to shake the very

are

foundations of democracy which
we are trying to lay in our coun¬

the good health of the West, both

capital in the form of technical aid and
training as a principal contribution.^ Asks for mutual understanding and "deeper appreciation of other fellow's situation."

■-

lot

the

other critical

sideration of private

the

with

tion

developed areas of the world, the
problem is much more complex.

world is interdependent—that the
development
of
free
Asia
and

despite greater Asian developmental difficulties ;

notes progress

common

sympathy.

the

leaders

capital "may well become more readily available to the under*
developed lands
providing . . . the climate and conditions exist to absorb it." The experienced world-aid official
.

are

to do in Europe
highly developed, if
destroyed economy.

temporarily
But

dedicated in the end to im-

course

Asia's development to

I suggested the

ernments of Free Asia

difficult

was

which had

•

■

Today,

By JOHN J. McCLOY*

Bank, New York

Free World's Interdependence

Chase Manhattan

accomplishment—a record

that
One

F. S.

Moseley & Co.

Shields 8C

Francis I. du Pont 8C Co.

Company

Shelby Cullom Davis 8C Co.
E. F. Hutton & Company

Granbery, Marache 8C Co.

Cooley & Company

H. Hentz 8C Co.

McDonnell & Co. The Robinson-Humphrey Company, Inc.

that

page

the

The Commercial and Financial Chronicle

(1563)

...

Thursday, October 10, 1957

plus—ownership funds. However,
agencies that grant loans to com¬

Commercial Pattern of Borrowing

By Commercial Finance Companies
By DR. FRANK J. CHARVAT

should
firms.
in

investors

prompt

use

Finds this increased

bonanza to

explored by Professor Charvat who finds

are

profitably increased

of long-term creditor

money

finance

engaged in commer¬
factoring, extending inven¬
tory and equipment loans, rediscounting and financing accounts

of their capital
absolutely
and
relatively.
For example, in 1947, James Talcott, Inc. had no subordinated
long-term debt.
By 1956 it was
$5.3 million or 34% of the $15.6

(1) Long-term subordinated debt

cial

part of capital.

ment

(3) A changed financial ratio in
setting up capital structures.

receiv¬

ables have
found

for

quests

Certain

com¬

these

business

panies

fi¬

nancial assist¬

finance

that have pursued
borrowing
practices
have

re¬

been

this

period of tight
y.i I n
turn, they seek

lending in a period of tight money
without - resorting to
equity fi¬

m o n e

funds for loan-

nancing.
"trading

flected

purposes

from
c o

extent

1 Data

from

for

the

this

interviews

use

article
with

nancial organizations

leading

this

field.

type

this

differentiated from

primarily

$2 million in

which time it
stock

64%

was

1956

surplus

the

which

The

cessation

1945 ushered in

extends

the

estab¬

business

generally

finance

have

been

total

stock

and

cer¬

personal

thumb

for

finance

companies has been established by
loaning agencies with whom they
have close working

commercial

concerns

Capital

that

under

relationships.

normal

business

nomenclature would include

finance

business.

mon

and preferred stock

com¬

plus

sur¬

ior notes due 1958-71

1956

566,666

nor a

solicitation of offers to buy any of these securities.

The offering is made only by the Prospectus.

over-

total

the

ten.

other

business

loan

the

of the

best

Per-

economy.

example

this

change is in the category of Federal

expenditures.

1929

such

still

world

the

below

the

billion

mark,

Compared with these sums, budgomy
will, in etary outlays of around $71 billion
all probabil- for the current fiscal
year seem
ity, grow to astronomical. All signs point to a
war,

Cnanes

almost

orouencK

econ-

twice

continued

high, if not rising, level
of Government spending. Whether
we
approve
or
not, what this
means from the point of view of
our survey is that, in the event
of a business relapse, the magni-

its present size

capital

$40,009,498. C.I.T. Finan¬
Corporation, a holding com¬
in

sectors

haps

outlays amounted to only $3.1 bilgreat meta- lion;-in 1937, after innumerable
morphosis.\alphabetical projects had been inBarring an- ^itiated, Government spending was

totaling $3,-

of its

the

undergoing

But

years.

even

another

important

than its expanding
of America as well

girth, the face
its person-

field, issued non-current junior ality is changing. The explosive tude of Federal outlays will, at
forces which are helping to pro- the
very least, lend massive supsubordinated notes of $50 million
duce these dramatic changes are port to the
in 1954 and increased them to
economy,
$100
mainly population growth, rising
million in 1956.
Moreover, with the emergence
the
As a result of subordinated bor¬ productivity and the new concept of
national
treasury as
a
of leisure and the work-week.
puissant force in the economy, we
rowings, which are regarded only
Before we turn the spotlight on need be less concerned
by loaning agencies as capital, the
about the
total

debt

and

finance

companies

relation

surplus

capital
risen.
In

has

these major trends, it is vital that
we

ourselves

reassure

projections

1947, James Talcott Inc. had loans
offer to sell,

sented

funds of

cial

stock
an

will

America

Notes

borrowing
has been the recent use by com¬
mercial finance companies of jun¬
ior notes bearing %y2 to 6V2% in¬
terest as part of capital funds.
These junior notes are subordinate
to
long-term subordinated debt.
As of May 31,
1957, the Heller
organization had outstanding jun¬

measured

This advertisement is neither

of Junior

second trend in

with certain of its subsidi¬

shadow

active

rule

ous

the

years

Yet

past
Use

ing

business stability, is repreby what might be called
structural change; that is, a shift
in the relative importance of vari-

known.

never

surplus of $22.3 million.

The

that of a generation
ago, which
has contributed greatly to improv-

undoubtedly

had

$14.3

time

1947

pany

three to three and
times their capital.

hostilities

decade of pros-

perity the like of which America

of the

projections, and work-week by 1975

will not be less than 35 hours.

and

million in

25%

was

is too conservative in its

surplus.

aries

This

consid¬

company

ered

are

private capital investment, and policies of both political
a trilogy of estimated labor
force, work-week
length, and productivity growth trends. Believes Census Bureau

Company
long-term

subordinated

debt rise from
at

and

one-fourth

fi¬

primarily active in

loans

article

its

stock

Heller

proximately

obtained

were

executives

been

able to obtain credit equal to ap¬

in this industry and

concerns

The

companies

of:

from the published annual reports of
tain

have

the

Established

borrowing policies, the trend has
toward

debt

stock¬
on

Long-Term Subordinated Debt

have

been

common

Ceilings, however,

in¬

While all concerns exam¬
not pursued identical

vestors.

turn, the increased
equity" has been re¬
improved earnings on

lished.

con¬

and

cerns

holders.

houses,

paper

In
on

the investment of

banks,

mmercial

insurance

ined

parties, and

able to obtain additional funds for

ance

Dr. Frank J. Cnarvat

had

total

(4) Long-term indebtedness.

unpar¬

alleled

total

Walter

(by 1965);

role of

larger amount

million

(2) Junior subordinated notes
part of capital.

instal¬

and

30% larger industrial production in
and creeping price inflation unless tradi¬
tional annual wage increases in excess of
productivity gains
are ended.
These forecasts are based upon basic
changes noted
in our economy, such as Federal
spending supplanting key
1975

both

changed by loaning agencies.

rates
Concerns

ing boom-bast cycles;

rently tend to make this medium
a

City

Mr. Broderick foresees occasional inventory recessions
replac¬

in general, finance companies cur¬

stockholder despite increased interest

common

By CHARLES T. BRODERICK*
Chief Economist, Lehman Brothers, New York

subordinated

of borrowed funds has resulted

reappraise commercial

use

The Long-Term Business Outlook

included

have

long - term
notes have been used by some fi¬
nance
concerns
as
part of their
capital for many years, with the
recent popularization of subordi¬
nated long-term debt by industry

Benefits and limits to finance companies borrowing on subor¬
dinated basis

lenders

long-term subordinated debt as
part of capital funds in arriving
at credit policies.
While

Emory University, Georgia

that this

mercial

' '

off-target

nomic

will

not

that

thrown

cataclysmic
earthquake such as
a

effect of

eco-

activity

our

slowdown in

business

capital expenditures,
the latter have become

short,

far less critical for the well-being
of the economy. In 1929, investment in plant and equipment was

that
$4.8 million and capital stock
surplus of $5.4 million, with which rocked the country in the
'30's.
To assume otherwise is to more than three times
less than capital.
By 1956,
the size of
borrowings totaled $54.6 million, pursue a meaningless statistical Federal outlays. Today, though
and capital stock and surplus were exercise,
for the
best-reasoned they have experienced a
rapid
$15.6 million, with debt 3.5 times models of future expansion would enough growth in absolute
terms,
ownership capital.
Similarly, be laid to waste by a serious de- they are only two-thirds as large
and

loans

NEW ISSUE

October 9,1957

Waiter E. Heller and

pression.

1947 had

Company in
borrowings of $25.4 mil¬

lion and capital stock and
surplus
of $7.9 million, with debt 3.2 times

250,000 Shares

the

capital. By 1956, borrowings
to $119.3 million on capital
stock and surplus of $22.3
million,

rose

Commonwealth Edison

with

borrowings 5.3 times

owner¬

ship capital.

Company
5.25% Cumulative Preferred Stock
(Par Value $100 Per Share)

Borrowing

met

rates.

have

Price $100 per share

increased

lending
by "trading on
larger extent, concerns

.experienced

profit showing

plus accrued dividends from date of issue

improved
by the

measured

net

After Taxes to

and

which

the

Prospectus

may

distributed.

16.50

been

and bust has

consigned to limbo
of

the

rosy

may

glow

community in
vista

the

endless

'20's, but
prosperity

would

two

the

combination

sources

around

demand

40%,

even

business investment in plant and
equipment were totally do evaporate and Government spending
were to fail to react at all in response to a softening in over-all

demand.
The
third

which then prevailed was the resuit of wishful thinking and not

which makes the

major

distinction

economy of the

the product of any radical altera-

postwar

era

tion in the business structure. To-

gigantic

area

day's

economy

kind

ing. The so-called "built-in stabilizers"—social security, industrial pensions, unemployment

is, in fact, a new
fundamentally

economy,

different

from

its

prewar

pre-

first

feature

consumer

the

spend-

benefits and farm supports—have

decessors.
The

unique
of

great

distinguishing
the postwar economy

committing political suicide. At
first sign of
an
impending
business
disaster our legislators
would wisely take action to re-

siroady become so institutionallze<* an^ ®o taken for granted that
^ tend
think of them as an
inherent

part of the economy,
these cushions under
consumer demand were for the

Actually,

part

non-existent

1929.
Another

postwar

prior

innovation,

*°° ^as become

a hallowed
tra«ition and acts to shore up disP°sable personal income, is the
^

18.92

duce taxes.
from

prewar

annual round of substantial wage
increases. So relentless is organ-

19.50

practice of combatting a slump by
raising revenues and thus balancing the budget. It may be re-

lzfd ^ab°r in its pursuit of this
objective that only a sizeable
business setback keeps total wages

membered that in the 1932 Presi-

anc* salaries from advancing.

dential

Questionably,

19.48

improvement in

also

even

net profit
though interest

Continued

Trading

ance

ioned cycle of boom

old-fash-

decline

these

18.89

This

Glore, Forgan & Co,

the

con-

1953—

has resulted

The First Boston Corporation

that

1951

dealers in securities

legally

15.31%

1949

Copies of the Prospectus may be. obtained from any of the several
underwriters, including the undersigned, only in Stales in which
qualified to act

belief

the

Net Worth

1947

are

Our

expenditures.

of this tremendous shift,
uttermost limits of any pos¬

sequence

to common stock

Ratio of Net Profit

Federal

the

the economic sophistication of
earnings after taxes
our elected
officials.
Both major
plus surplus. For
parties are committed to a full
example, Walter E. Heller & Com¬
employment policy, and for any
pany has shown the following up¬
Administration to countenance a
ward trend in earnings:
depression would be tantamount
ratio

Tear

such underwriters

However,

equity" to

fate

sible

the

stockholder in

bonanza.2 Increased expenses of
operation plus borrowing cost re¬
flecting higher interest rates have
been

Defenses Against Depression

ness

finance concern, this increased use
of borrowed funds has resulted in
a

such

again.

reminiscent

common

conviction that

our

suffer

not

confidence that pervaded the busi-

Benefits from Increased

To the

It is

will

page

plank

equity

through

the

issu¬

-r-*

common

Industrial Acceptance Corporation, Ltd. issued $10 .million in pre¬
ferred in 1956.
During the period of 1947

1956, James Talcctt, Inc. increased its
preferred shares from $700,000 to
$2,700,000.
However, this article is con¬
cerned with borrowed funds.

different this

the

in Franklin D.
■»

was
i

the

cutiai

vow

second

principal
Roosevelt's
to balance
f

significant difference

between the modern economy and
*An

address

then,

by Mr. Broderick before
the American Management Association's
special
conference on "Planning Ahead
for Profits," New York City, Oct. 4, 1957.

Un-

strong

in-

uusjTial unions and the built-in
stabilizers have made consumer

nnwlinpi'nrf

1,1

the Federal budget.
uuugci.
L

concerns

How

recommended

campaign

platform
on

of preferred stock
by some
has
been
of
benefit
to

stockholders.

the

•

purchasing

power

quite
71

resistant

0 economic adversity.
Vulnerability to Recession
While

that

the'

are

basic

firmly convinced
changes in the

Continued

page 57

Number 5680

Volume 186

The Commercial and Financial

...

Chronicle

(1569)

tinued. expansion, in our opinion.

struction,

I might add that this was true of

Policies and Attitude

capitalized.

the

pable

In Florida

Regnlation

Chairman, Florida Railroad and

Power &

Public Utilities Commission

followed

which

conclusions

during

such

June

last

l»ob

the

duty

our

the

became for the moment

paramount,

bo,

result

these two matters, we
order

earning

part of lyoV
available. In

were

situation

consumer

June

issued
this

of
our

cause" order to Gulf Power Co. and Florida Power & Light Co.

its

reduce

rate

rates

return

that

would not

their

exceed

Boyd states rate of return is subservient to
Commission's concern about the dollars required, and declares

6J/>% and to eliminate their pref¬

policy finally resulted in a 6.98% return in the case
of the Florida Power & Light, assuring stockholders a fair
return and consumers a fair and reasonable rate. Expresses

pared

pride in resultant better rate structure, which the utility feared

at this

Commissioner

erential rate structure

that this

had

some

this

fail

have

every

have visited

of them

none

Florida

have

threatening hurricanes
and

cently.

that

true

c o u n

the

field

utility
lation

deal with the

the

Florida
m

ing

;

Comi

n's

been
Alan

Boyd

Florida

Power

year.

order

when

concerned

all

are

Florida,

threatens

have

similar feeling when a rate order
is
directedvtoward one
of the

in¬

companies in which you are
There

terested.

who

some

were

that

now

Commission

the

for

time

such

issue

the tremendous

because

order

was

argued

in Florida and tnc need
for. further financing of our util¬
growth

both proud and grateful
for the tremendous growth of our
We

are

Our pride is in¬

State of Florida.

creased

firm belief that
policies and attitudes of the

the

Railroad

the

Commission

are

positive

constructive element
and

rent

and
cur¬

our

prospective growth.
that

inconceivable

Utilities

Public

and

Com¬

our

mission would do anything to de¬

potential

growth

the

stroy

Florida

far

utilities

are

the

concerned.

i d

Flor-

the

Development
Commission,
which was inaugurated under his
a

leadership, have induced many
nationally known industries to
locate

lins

Florida.

his associates

and

gently espoused
climate

which

dili¬

have

the fine

could

natural
enjoyed

the personnel of these indus¬

tries

and

excellent

which

also the favorable

business

found

ida

Commission

the

same

Places

We
are

were

day have become
centers today.

glades

the

the Flor¬

disciples

philosophy.
that

under

years are

laws

climate

throughout

State of Florida.

Col¬

Governor

farms

yester¬

huge shopping

Parts of the Ever¬
water

for

many

being drained and filled

will be occupied in the near
future by Pratt & Whitney and
and

other

companies of similar

nitude.
utilities

*An
New

construct

the

neces¬

plants and distribution lines

sary

New

mag¬

Without the ability of the

address by
Yprk, Society

York

Mr. Boyd before the
of Security Analysts,
City, Oct. 2, 1957.

refer¬

some

Once

matof simple arithmetic to relate
total

the

dollars

ascertain

the rate base

rate

the

return

util¬
this method of
arriving at a rate of return places
the
goal
of
regulation
in its
proper perspective. It assures the
equity owner of tne utility a fair
authorized for the particular

ity.

addition,

return

his investment while at

time

same

ity consumer

providing the util¬
with fair and rea¬

sonable rat«s.

with

connection

turn and

our

of re¬

rate

treatment of equity-

should like to
discuss
with
you
the
Florida
Power & Light case and our han¬
dling of it during this summer. I
interests, I

owner

will not
case

refer

Gulf Power

the

it is still before the Com¬

mission.

Florida Power & Light has
for

many

and

fixed

years

its

for

had

municipal

rate

structure,

result of the

phenomenal
growth that has taken place in
Florida,
(at the time electrical
utilities were
placed under the
jurisdiction of the Commission)
much of the territory outside of
the
city limits was even more
thickly populated than in certain
as

areas

some

of the cities.

Both

residential and commercial rates
established

were

the

same

Primarily as a
result of this growth, there had
developed wide areas of discrim¬
inatory or, if you prefer, prefer¬
ential rates; rates being charged
and paid which were not right.
The Company was aware of this
situation
but
they had a very
natural reluctance to tamper with
rate

structure

opening Pandora's

for

fear

Box.

the
company's
earnings
were
considerably
in
excess of that required to meet all
its operating costs and expenses,
its
debt
service,
dividend and
common
stock
appreciation, and
Furthermore,

more thati'that, requifetUfor rais-J
!ing additional capital-for its eon-j
t

(

commercial

and

are

with the dollars

the

the rate which

con¬

required.

why

reason

Florida

Power

au¬

Light

ultimately

nr^-od

considerably in

6V2%.

From

not

are

particular, theoret¬

formula.

thorized

ap-

excess

V v:'.;."
outset, the
utility,

•/■,./. ;
the

management and the Commission
in

were

accord

preferential

rates

fact

were

The results

that

neither

were

residential

three

the

beneficial and should be

nor

one

ad¬

these

that

and

wel¬

doorstep. A

our

emphasize that so
and

Railroad

Florida

Commission

Utilities

going to do our
best to see that the capital in¬
vested in Florida is treated fairly
concerned,

that

and

we are

the

customers

unintentional
soon

also

err

brought to

purely

remedied

and

are

at¬

our

tention.

Secretary of Navy
To Address N.Y. I.B.A.

Our Commission first

Power

automatic

clauses

There

case.

the

ad¬

Florida

authorized

fuel escalator clause and also

commodity
an

adjustment

rate

coming

cases

clause in

effort to eliminiate

series of

tide of in¬

on a

flation, and to establish fair rate^
to the

regardless of the
economic
currents.

consumer

vagaries

their

That

Fuel

considered

to the

cerned

one

only Com¬
the advan¬
commodity
residential

rates.

convinced

talk,

the

justment clauses alone, of course,
are
standard practice
in power

earlier

observing
clauses

the
action
of
operation in the

utilities regulated
of

by the Florida
thoroughly

are

benefit

us,

Thomas S.

Gates, Jr., Secretary
Navy, will speak before the
New York Group of the Invest¬
of the

Bankers Association

ment

association's

at the

dinner

annual

—in the Future" will be the Sec¬

retary's topic.

On the basis of reservations al¬

ready received, it is expected that
than 1,000 members of the

Group and their guests willffoe
present, according to Walter| H.
Steel, Chairman of the Group, %■$
-

•
.

The

utility and to the

Florida

contain

rates

both

Light
fuel

new

and

commodity clause which have
been brought up to date with the
fuel clause more nearly approxi¬

Anderson & Slrudwick
Admit H. A. Roberts
RICHMOND, Va. — Anderson &
Strudwick, 807 East Main Street,

mating the changes in the cost of
fuel based on improved economics

members

in the

Richmond

plant, j.
'We
are
all vitally concerned
with the continued growth of in¬
dustry in Florida.
This growth
could not be expected to continue
power

of money

without

the vast

that

invested from outside the

are

consumer.

Power

Wednesday, Oct. 16 at the Waldorf"The Navy Service

Astoria Hotel.

sums

New

the

York

Exchanges,

Stock

and
on

Oct. 17 will admit Harry A. Rob¬
erts to

partnership.
of the

member

Mir. Roberts,

Richmond

Ex¬

change, has been associated with
the firm in the municipal depart¬
ment.

one

of three commercial rates was

completely

residential

the

This is

not an

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

commercial

and

One rate applied to
metropolitan areas and the re¬
maining rate to be applied to
electricity
distributed
in
the
categories.

districts.

smaller
agree

This

all

The California

constructive

very

one

was

200,000 Shares

Oregon Power Company

result of our Show Cause Order.

Common Stock

Some

complications arose over
figuring of working capital
requirements and items to be con¬
the

sidered

the

for

rate

(Par Value $20 Per Share)

The

base.

accepted the overall re¬
duction in rates, which amounted
to some $4,725,000 in gross rev¬
enue, but at
the same time op¬

company

Price $27.25 Per Share

posed the fixing of any rate base
or
rate of return unless the rate
base

predicated

Copies of the prospectus may be obtained from any of the several under¬
writers only in stales in which such underwriters are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.

total cap¬
italization of the company.
The
was

Commission did not and does not

with this position.
required to fix the rate

agree

We
base

utilities

the

under

contributions from

deducted

our

Dean Witler Ac Co.
'V '
Eastman Dillon, Union Securities Ac Co,
■

Merrill Lynch,
First California

and Company

Foster Ac Marshall

work

Batcman, Eichler Ac Co.

items:

allow

progress

One

construction

except on these
construction

for

Hooker & Fay

$50,000;

balances were
under
the last is for con¬
designed to im¬

llill Richards At Co.

Stephenson, Leydecker & Co.
Francis I. duPont & Co.

Wilson, Johnson & Iliggins

Incorporated

Maxficld II. Friedman

Granbery, Marache & Co.

Ilayden, Miller Ac Co.

June S. Jones & Co.

Incorporated

Revel Miller & Co.

standing

J. Barth At Co.

Brush, Slocumb Ac Co. Inc.

McAndrew At Co.

Robert W. Baird Ac Co.,

construction items where the out¬

progress

Irving Lundborg & Co.

Crowell, Weedon & Co.

Wagenscllcr Ac Durst, Inc.

Mason Brothers

Grande At Co., Inc.

Lester, Ryons Ac Co.

WullT, Hansen Ac Co.

Mitchum, Jones At Templcton

which
will
shortly be in service; another is
work

Walston & Co., Inc.
Davis, Skaggs Ac Co.

Moseley At Co.

Wm. P. Harper Ac Son Ac Company

Sutro & Co.

not

did

F. S.

Schwabachcr At Co.

working capital, which gen¬
erally followed the formula used
for working capital in prior rate
cases.

Company

(incorporated)

Elworthy Ac Co.

William R. Staats & Co.

for

Smith, Barney & Co.

Pacific Northwest

Company

deducted a storm reserve of
some
$7,000,000 and added to it
the
staff's
recommended .figure

poses,

Kidder, Peabody At Co.

Pierce, Fcnner & Bcane

(incorporated)

II. M. Byllesbv

cus¬

for construction pur¬

tomers used

The First Boston Corporation

Blyth At Co., Inc.

are

for

jurisdiction at the net amount of
money actually and prudently in¬
vested in the property used and
useful in the public's service. We,
therefore, took the electric plant
account, deducted plant reserves,

boundary system.

the

few, if not the
mission, to recognize
tage of both fuel and
adjustment clauses in

eliminated.

it is

of the

Commission,

wise

requirements

dollar

the

I believe our Commission is

these

ical

far

treated' fairly, and if ' we
either direction it will be

After

foolish,

very

holders of Florida Power & Light
securities.

the

Power

should
as

to take the

off

mat

come

rate base of

would

therefore, for

was

Light

State.

Public

Corporation
in
1953.
We did not require Florida
Power
&
Light to revert to a
6»/2% rate of return. As I stated

authorized

return

Florida

required in

have been ascertained,

boundaries

Governor Collins and

that

eliminated and new
rating areas were established for
the remaining two rates in both

the

ities.

debt service, dividend re¬
quirements and transfer a reason¬
able amount to surplus.

proved the Commission was going
to be unreasonable as to rate of

who

to reduce
6^2% rate of

therefore utilized the approximate

to meet its

utility

pense,

and

others

the

company

felt

why

one

ter

and

for

explain

operating expenses, depreciation
charges, taxes, maintenance ex¬

thought that the fact of issuing a
Show
Cause
Order
in
itself

return,

much

quirements of the utility; that is,
how many dollars are

and no doubt some of you

never

the dollar re¬

Light Company on June 13 of this

hurricane

the

1954,
has

It has been

return.

interested

and

you

greatly concerned over the
of

rate

to Gulf Power

Company

told

Commission

Florida

issued

Order

Petteway
-

Cause

Show

theory is the only way to
problems confront¬
from day to day. As Mr.

latory

a re¬

-of

sult

that

feels

Commission

The

the

wedded to any

practical approacn to sound regu¬

regu¬

invest¬

ing in Florida's future.

was

brewing

have

who

point should be established
purposes of comparison and

rate

the " investors

return.
ence

be
our

schedules.

only academic interest

its rates to obtain

for

shown their confidence by

hurricane

are

that

think

this

In comparison with
on common stock of
other
similar
utilities, we feel
that
our
action represents
fair
treatment tp the common stock¬

Commission

Utilities

Public

just

directed

Florida

the

Show

our

result

$302,404,378.
the earnings

justment

clear
right
.Railroad

absolutely

that

they

then

may-

Power

return of 6.98%

should

concerned w'ltTfthe" fi¬
nancial stability of the utilities in
our
state as is management and

eiy"

seemed

accede

be pre¬

why

Florida

time, in view of our final
rate order, but for clarification,. I

development

should

cease.

make

selors,

would

occupancy,

construction

great

and

Some

advance

here

re¬

estment

n v

not

cause

Cause Order.

inducing the firm to charge interest
during construction which can be capitalized.

While

year,

should

tamper with, and in

show

which
The

order issued Aug. 27

grant

year,

requiring Florida Power & Light

'show

was

ca-: rate

very

of
Florida
industriously

their

which records

commission's head asserts "it is inconceivable
that... [we] would do anything to destroy the growth poten- ;
tial in Florida so far as utilities are concerned" in rebutting
fearsome

Light

improving

Florida utility

the

and

management

record

By ALAN S. BOYD*

1956

year

■

Stewart, Eubanks, Meyerson At Co.

Murphey Favrc, Inc.

J. S. Strauss & Co.

E. M. Adams & Co.

Zilka, Smither At Co., Inc.

and

work

struction

Blankenship, Gould & Blakely, Inc.

Campbell & Robbins

Camp Ac Co.

Incorporated

prove

existing service but not re¬
placing old equipment. On other

Waldo

construction work in progress we

Boettchcr and Company

felt that the proper

John R. Lewis, Inc.

mode of han¬

dling would have been to charge
interest during construction. This
the company had not chosen to
do

but

formed
to

have

recently

in¬

their policy now is
interest, during con¬

that

charge

been

Hemphill Ac Co.

Morgan Ac Co.

Atkinson and

William J. Collins & Co.
Paine, Rice At Company

Southwick-Campbell Ac Co., Inc.

Company

George Patten Investment Co.
Weeden At Co.
Incorporated

October 8, 1057.

Bailey & Co.

Holmes Ac Sandman

The

(1570)

Direct Government Lending

Mortgage Market Obse rvations and
Mortgage Lending Challenges
By HARRY HELD*

j T

City

Vice-President, The Bowery Savings Bank, New York

Savings banker examines current and anticipated future

N. Y.

which

store

there

effective mortgage lending and

that

warns

any

sentence

Dr.

book

Lending,"

year

evi¬

the

dence

suggests

that

for

the

improvement
of
1 ending
p o 1 i c i e s inim¬

creased

portance must
attributed

the

to
o

correct

b servation

and
of

in
o

analysis

conditions

ecoh-

the
m

whole:

Harry Held

tors

to fac¬

affecting

loan experience that extend far
beyond the horizon of individual
,

mortgage transactions."
This suggestion, among
which

generated

were

sult of the

others
re¬

comprehensive

survey

made by Dr. Morton of the com¬
parative markets and experience
in

mortgage

opinion,
say

lending,
most timely
will

one

living in

I dare

are

economy;

dynamic

is
one.

deny

also

that the trend of the economy as
a
whole will become more and

dynamic in the years ahead.

explore

social

and

all the economic,
political aspects which

have bearing upon mortgage lend¬

ing would require
seminar
outline.

just

several

day

them

cover

However, within the lim¬

itations of this paper I would like
to give my observations and anal¬

ysis

which

some

the

conditions

facing and

are

on some

future problems.
Let

ask

ourselves

there

validity to the suggestion
that
"for
the
improvement
of
lending policies, increased impor¬
tance

must

correct

attributed

observation

and

the

analysis

make

its full

ment, production, and purchasing
power."
additional

provision of the
Housing Act of 1949 consolidated
all
Housing Agencies
under
a
newly created Housing and Home
Finance

Agency as the co-ordi¬
nating head of many and various
administrations having to do with

of conditions in the
economy as a
The answer is rather ob¬

housing.
are

viously in the affirmative in the

lic

light of

experience

our

the

recent

and

the

rising

"tight money" and

interest

population growth.
affirmative
obvious

that

rate

the

when

construction

conceeded to be

becomes

answer

recognize

industry is

bulwark of

eco-

riomic

prosperity and that hous¬

ing, which has been
■

national

reached

policy
such

mendation

since

stature

has

matter

1934,

that

been

change its status from
istrative function to

has

recom¬

made
an

admin¬

Under

its

jurisdiction

included the

FHA, PHA (Pub¬
the Federal Home

Housing),
Loan Board, Urban
Renewal, Re¬
search,
Alaska
Housing,
Com¬

*An

address

by Mr. Held
Bank Association of
setts, Sept. 14, 1957.

Savings

From

basis
and

the

der the

the

that

direct

mortgage

Government

has

the

quite

low

been

not

be noted

lending

interest

exclusively

Federal

rates

limited

Government.

few States the State Gov¬

ernments

hyave

embarked

upon

these

In addition,
price of houses has
increased (to $12,000 in 1956 com¬
pared with $10,000 in 1955) re¬
sources.

median

quiring
unit.

mortgage dollars

than

house

values.

direct lending programs primarily
lor veterans and urban rehabili¬

equalled 50%

tation

ers'

slum

and

-use

clearance.

Thus,

•

matter

per-

fact, mort¬

gages have increased in size more

almost

five

or more

estimates

contrast

ten

with

early

ten

early 1957mortgages
of the own¬

home

less

value

than

in/

four

1949.

All of these factors have had

bearing

upon

the supply of mort¬

investment

gage

funds

and

new

Government's

secondary

liquidity.
have

opposed

likewise

ing mortgage lending policies and
the
needs
of
our
constantly practices to
Private
direct Gov¬ population as a whole.

use of
lending for the
pegging
unrealistic

any

ernment

purpose

interest

rates

federally

underwritten

to raise the housing standards of
these groups, we have voiced ob¬

jection to

any program as a

assistance
mental

program

special

govern¬

purchase of mortgages at
upon the opinion that

based

par,

such

programs

lend

can

them¬

selves to abuse and unwise

enterprise
first

has

already

successful

stride

made
in

home

di¬

mortgages.

-/•

Loan Guarantee Plan

the

this

use

the

same

brief

National
activities

resume

Housing

policy

centralized

HHFA, there

the

un¬

be little

can

Government in housing and mort¬
gage

lending is

tor of prime
gage

economic fac¬

importance to mort¬

lending

institutions.

While

the Veterans Administration home

the

program

HHFA,

it
as

Government

housing

and

independent

likewise

must

major factor

activity

mortgage

field.

of
be

the

rection

through

the

Voluntary

plan sponsored by the United

States

Savings

and

Loan

League

activity to fluctuate widely.

It is substantially greater new housing
production in the 1960 to 1970

apparent that these programs will

virtually

disappear/-unless

become

marketable

they

rate.

"The proposals now before Con¬

supplement the supply of

gress to

private

mortgage

money

operate to encourage

not

savings.

new

All

addition,

ment

such programs would be certain to
add to the fires of inflation and

than it would otherwise bor¬

row,

tending to raise

be inconsistent with

interest further and

other actions

taken by the Government to stem

our

Federal
in

borrow

these

population

can

segments
be

ade¬

quately housed and that financing
can be provided by private mort¬
gage lending sources without the
necessity of direct Government
lending. That such a demonstra¬

the

rate of

inflation¬

VA loans
one

have

the

diversion
a

indicate

about

units annually
care

tion

and

FHA and

undoubtedly been

major factors

investible

in such
On

funds.

yield basis federally underwrit¬

ten mortgages have been at a pro¬
gressively
greater
disadvantage.

Efforts to free the interest rate
such

mortgages

been

rebuffed

discounts

have

not

Congress,

IVz

new

One

million

new

to adequately take

demand

through popula¬
family formation

bright

spot in the
availability of funds in the 1960s
is

that

the

rate

existing

level

will be at much

creating

Fixed interest rates

that

market

the

ary."

inflation.

demonstrate

require the

Conservative estimates iof

housing needs in this period

Govern¬ growth.

being self-defeating.

period.
new

commitment authority, as well as

this

considered
the

Massachu¬

doubt that the role of the Federal

of Cabi¬

before

duties

nature.

loan
one

post and rank.

other

many

the
net

from

it should

of /governmental
credit
sources. secured-at low* interest rates, there

markets.

Likewise,

little

this connection

unavailable by

munity Facilities, Federal National
Meeting the Challenge
Mortgage
Association,
School
This
It is also in the affirmative in the
legislation, although de¬
Housing for Primary and Second¬ feated this year, presents a chal¬
light of maximum production in ary Schools,
College Housing for lenge to all institutional mortgage
our economy, industrial expansion
Faculty Use, Disaster Housing and lenders
and
home
builders
to
the

•

contribution toward

of maximum employ¬

economy

whole."

months

doubt that, willingly or unwill¬
ingly, there will, be expansion of
direct governmental lending.
In

already before Congress. This
Home Mortgage Credit Program. plan would create a Home Loan
and
the
use
of
the
National Housing Act in 1934 the mortgages
directing funds - to " areas of Guarantee Corporation under aus¬
Federal National Mortgage Asso¬ In
preamble stated that the funda¬
the participants in this pices of the Federal Home Loan
ciation facilities for the purpose scarcity
mental purpose of the legislation
Bank Board with $50 million capi¬
of
financing
special
assistance program have constructively mini¬
was
"to encourage improvements
tal stock to be subscribed by the
mized
the
necessity
for
direct
in housing standards and condi¬ programs under FHA at rates of
Federal Home Loan Banks, which
by financing mortgages
interest far below current mort¬ lending
tions."
•
would partially insure or support
on a sound basis in such locations.
In the 1957 Session
Two further goals were set in gage rates.
mortgages
in
the
maximum
effectiveness
of conventional
of Congress a Senate proposal was The
this legislation—one to provide a
market in much the
included in the housing bill to this program depends upon maxi¬ secondary
financing system to make debtsame way as the Government does
mum
participation by all mutual
the
already
approved
free homes possible for American expand
for FHA and VA mortgages but
savings
banks
in
meeting
the
families, the other to exercise a Military and Cooperative- Hous¬
challenge of direct Government without limited interest rates. The
degree of stability in the mort¬ ing Special Assistance Programs
National Savings and Loan League
in order to make the following lending.
gage and real estate market. These
is also working on a proposal to
additional
groups
eligible
for.
fundamental
purposes
were
ex¬
be madb next year for the forma¬
Fixed Interest Rates
panded in the Housing Act of 1949 special assistance from FNMA for
tion of a corporation which could
four (4) per cent mortgages in¬
One of the foremost questions
through a Declaration of National
issue five- or ten-year debentures
sured by FHA:
in
the housing
Housing Policy which states:
market involves to be made available for trust
"The Congress hereby declares
(1) Persons of moderate income. the availability of mortgage in¬ funds, pension funds and other
that the general welfare and se¬
vestment funds.
During the past types of investors who do not like
(2) Persons whose inability fo
curity of the nation and the health
.capital
which
normally long-term
obtain adequate housing ac¬ year,
mortgages. The FHA
and living standards of its people
would be invested in mortgages
commodations in privately
has already given its blessing to a*
require housing production and
financed housing is attribu¬ has been diverted to other invest¬ plan formulated
by the Institu¬
related
community development
media,-, and Government- tional Securities
table to race, color or creed. ment
Corporation of
sufficient to remedy the serious
sponsored housing programs have New York to
(3) Elderly persons.
issue
debentures ►.
lost much of their effectiveness.
housing shortage, the elimination
(4) Single persons.
backed
by FHA mortgages, for
of sub-standard and blighted areas
The First
National City
Bank's sale to pension, trust or other,
(5) Persons having five or more
and
the* realization
as
soon
as
Monthly Letter of June, 1957 in funds.
dependents.
feasible of the goal of a decent
an
article on Mortgage Credit in
The financing terms under these
home and a suitable
an
living en¬
Meeting Future Needs
Inflationary Economy, com¬
programs were to be liberal to ah
vironment
for
ments on this situation as follows:
every
American extreme
At the present time, we are at
and the proposal carried
family, thus contributing to the with it an
"One reason the housing indus¬ a crucial crossroads in the field
authorization for the
development and redevelopment
purchase of $250 million of these try has been particularly sensitive of mortgage investments. While
of
communities and
to the
ad¬
to a
tightened money market is housing production of between
mortgages
through the
Federal
vancement of the growth, wealth
its
National
dependence on Government- one (1) million to 1,100,000 new
Mortgage
Association
and security of the nation.
The
backed mortgages with relatively units annually would represent a
Special Assistance Program. While
Congress
further
declares
that
The ef¬ satisfactory level for the next few
we
have no quarrel with the so¬ inflexible interest rates.
such production
is necessary to
fects of this political control are years, we must gear our mortgage
cial objectives embodied
in the
enable
the
housing industry to
such as to cause VA and FHA lending
mechanism
to
finance
proposal, the intent of which was

any

the

Role

gage

there

aging effect upon, refinancing of
mortgages and the making of pre¬
payments on existing mortgages
thus tending to reduce somewhat
the
supply
of
investible funds

"Urban Mort¬
Let us analyze the question of
published
last the Government's role and present
Princeton- University activity in the field of housing.
In the enactment of the original
Press, states:

Morton's

financing

Thursday, October 10, 1957

...

activities current rates of interest on pri¬ sources of mortgage capital are
being sought from pension funds
market should vately placed mortgages.
union
welfare
be confined to their original pur-,
funds.
The
Expansion of such direct lend¬ and
can
poses of directing mortgage funds ing
only be com batted by situation has also, in effect, forced
to areas of scarcity
and in re¬ private enterprise through a rec¬ action toward meeting the need
lieving temporary situations of ognition of the necessity of gear-1 for a new approach to financing

that

lack of

Government's

challenge* of

population,

our

private lending
ijiave consistently testified be¬ have been available to specific
fore Congressional committees, on segments of our population mort¬
behalf of our National Association, gage funds at interest costs below

further direct government lend¬

the

the housing needs for all segments

insured mortgages.
last

capital

through

Credit Program, and discusses two plans offering a new
approach to financing mortgages; one would insure or support
conventional mortgages in the secondary market, and the other
would form a corporation to issue debentures backed by

The

have been expanding in re¬

where

gage

pro¬

of supplementing the second¬
market for mortgages in areas

ary

reduce mortgage investment opportunities
private enterprise. Praises Voluntary Home Mort-

available to

loan

direct

pose

will

inroads

emphasis in
the
Government's
housing - pro¬
gram has been one of encourage¬
ment
of
private
enterprise, to
build
and
finance
housing, the
direct lending activities
of the
Federal Government through the
Federal National Mortgage Asso¬
ciation and through the Veterans
gram

Mr. Held reviews efforts made to confine
government efforts in the secondary market to directing funds
to scarce areas and to relieve only temporary lack of liquidity
ing

meet

major

cent
years.
Originally
both
of
these programs were for the pur¬

home

building activities.

conditions, and

the

Administration

market, and problems in
might impel increased governmental intervention

housing conditions, mortgage money
unless

While

Qovrimercial and Financial Chronicle

mortization

payment

loans

higner levels thus

good

basic

supply of
However, much
thought must be given by private
mortgage lenders now as to how
a

reinvestible funds.

'to

meet

order

the

demands

the

'60s

that

machinery may be
in advance to meet the sit¬

set up

uation.
On the immediate horizon is the

only

but

such mortgages have,

legislatively,

big
can

question as to how housing
be provided for middle in¬

come

families

prices

and

rying charges which they

can

car¬

af¬

been made subject ford.
Chairman Rains of the House
to
regulations by the FHA and
Banking and Currency Commit¬
VA administrators. While the untee has already announced that he
tion is necessary at this time is
attractiveness of federally under¬
will hold hearings on this vital
self-evident because the further
written mortgages, from a yield
the inroads of direct Government
subject.
A Senate report stated
standpoint, has been a major fac¬ that:
.'
';
lending are made the less mort¬ tor in the contraction of funds
/
gage investment opportunities will
"Families of moderate income
available
for
mortgage
invest¬
be available to private enterprise.
ment,
other
factors
have
also —earning .roughly between $3,500
Expansion of Government credit taken their toll.
and $6,000 a year—are finding in
Many institu¬
into special
assistance programs tions
have already reached, or are today's market that the price of
is an opening wedge toward more
close to their desired percentage adequate housing is beyond their
and

lending.
If

private

direct

Government

enterprise

mortgage

tion

cannot

their

investments in rela¬
total

assets.

interest rates have had

Higher

discoup

reach."
The

1957

Finances

Survey

conducted

Consumer

by the Board

Volume 186

Number 5680

Governors *of

The Commercial and Financial

...

Federal

the

Re-

System made the following

serve

findings:
-"The

growth

never

create

ly among spending units with inof

comes

dollars.

$5,000

non-farm

1956

1957, 79% of all

spending units with in-

of $7,500 or more, and

comes

In early

with

those

incomes

64%$5,000-.

$7,499,. were home owners.
The
corresponding
figures
in
early
1949
as

69%

were

result

and 55%.

the

In part
of-

movement

While many reasons may be advanced to justify present new
house prices, the fact remains that

spending units into higher income
groups from early 1949 to early
1957,

owned

one-half

all

suggestions'on this question to

«if you

produce the mortgages

enlment play an increasing role
in mortgage lending. This tendency, if permitted to grow, will
not only reduce the opportunities
for private enterprise in mortgage
lending but will contribute to inflation which in turn will hold
interest rates high and contribute

than

non-farm

-d
T^_k Ahe-id
iremendcus task Aftead

houses

requirements of the majority of

the American

people, the

pressure

Abbut

their

own

according

other than

the

these

purchases

houses.

who

the

bought

w^\h^y\P^rt read as follows:
Close to 900,000 new homes

con-

and

new

ex-

isting houses in 1956 sold another
house at the time of the purchase,
These

higher

bought

consumers

houses than other purchasers.
As
might be expected,

priced
the

time

creased with

the

the head

that sold another
of
purchase in-

proportion

house

The

and

age

further

(in

unit,

indicates
,

"Prices

income

of the spending

Survey

that:

dollars)

current

with net new household.formation
(around 750,000 a year), farm to
city migration (around; 75,000 a
year) ..and demolitions incidental
to fire losses, highway development and store, factory and apartment: construction, etc. (probably
another 75,000). So if we build
1,000,000 new homes a year we
would have only 100,000 available to replace dilapidated and
outworn units. At that rate, it
could take 80 years to get today's
8,000,000 sub-standard units off
the market and 470 years to turn

in- over our present housing invencreased markedly since the early lory* If we build 1,100,000 units

ta\

with

compared

more,

about three-fifths of all non-farm

advance has differed for

In the

and

new

house
market, higher prices have refleeted steady increases in con¬
struction
costs,
which
totaled
existing houses.

one-fourth

about
and

new

between

the

and

1956,

building

j^id

tively

shown

have

rela¬

change."

little

for

would indicate that
market

the

higher

homes

new

sales

the

extent

some

priced brackets is dependent upon
active

older

resale

market

also that

homes,

the

home

building industry priced itself out
of

part of its market

trating

ment

and

costs

by concenattachequipthat building

larger homes,

ment

rose

and

the

fact

during

annual

that commencing three

four

1956

keeping

with the general increase in
price levels. With a tight mortgage money situation and rising

offs

such
years

middle

this

During

charges.

the '20s

income

met to

was

the

of
a

housing

the

the then
problem

/great extent by the

period nearly half of the

this

Financing

the

upon

production

dwelling

unit

con-

struction

the

been contended

scarcity

concentrate

that

for
build-

financing,

smaller homes, caused some
ers

larger

and

expensive conventionally fi-

nanced homes.

Many other causes
have also been voiced in connection

with

the

high price level of

homes at the present

The

(2) The demand for mortgages

stork

stock

dividend

From

fi-

the

,«

...

function

years

about five

time, two of

record

may

requirements,

This would enable us to

broaden the market for housing
to meet the needs of middle- and
lower-income families,
"We need a more effective mort-

market.

Private

times

en-

While

not

be equalled

There^i?s

MINNEAPOLIS, Minn.—Eric G.' Cornwall have become

nire

South.

Pacific

the

Coast

distributing facilities

Distribution

located in principal
financial and business
centers.

Industrials

Primary Markets

Public Utilities

With Complete

Bank and Insurance

Trading Facilities

Municipals

Bonds

mortgage

New York.
Hoston

•

Detroit
Pasadena

•

Preferred Stocks

San Francisco

Philadelphia

•

Chicago

Pittsburgh

Minneapolis

•

connected

with Daniel D. Weston & Co., Inc.,
Reynolds & Co., 629 Second Ave- 9235 Wilshire Boulevard, members

Hoyer has become associated with

•

Common Stocks

I can state very briefly what I
believe are the most urgent housinS aeec,s.
°
"VVe need a good, lower-priced

gage

depres-

in the years immediately ahead, a

house.

the

good growth can be reasonably
anticipated for many years to
come
an esprit de corps
at this bank of long duration; If

the Southern Conference

aboiit

age private enterprise to do the
job" but
this process the private
lending system should be sure that
steps taken by the Government do

jogs banks. Since 1934 housing
has become a-matter of national
P°Ilcy. What are the roles that
Government and private enterPrise. sbo4jd take m the field ot
housing. Senator John Sparkman,
Chairman of the Sub-Committee
on H?using, °
Committee on
Bankmgand Currency of the
United States Senate, in an ad-

hook

exceed

imminent,

seems

through 24 offices

Mortgages have,
'or ovei; a century, been considered prime investments for sav-

vields

bottom of

Coast to coast retail

situation but I WOUld
like to point out that each single
transaction
which
takes
place
locally eventually ends up in the

dress

Zai

even

this

local

miaimum

It also has

chiraeo

new

enterprise.

mortgage financing. One might
say that he is interested only in
his

hot

2%% on market, but a substantial

de¬

availability

thirds

Blyth & Co., Inc.

accounted for between 80 and 90%
the

market

^ ^ * TaSalir

th«

two

Government, as stated by Senator
Sparkman, should be "to encour-

the

saturation

$8,000."

\Suec01Ald> 1 .beheve 1\1S my duty
to the American people to learn
jybat their needs are, and to assist
^\er9 111 obtaining at least then

units
built
were
in
During the past few
single family dwellings have

dwelling

apartments.
years

the

mortgage pomoiio irom tne policy
standpoint of lenders.

caf^s*

financing their

monthly cost
of debt service also increased, requiring higher income levels to
peak

and

mdrteage portfolio from the policy

rates, difficulty was encountered by would-be purchasers

meet

ahout

Financing Housing

pends

making judgments in this field, not impose unrealistic restrictions it maintains, as it should, it is
we should recognize:
on private lending nor lead to the a great hidden asset in itself,
(1) The amount of mortgage preemption of the field by direct
money available in recent months Government lending,
Daniel Weston Adds
has decreased because of the com(Special to The Financial Chronicle)
petitive interest rates on other
With Reynolds & Co.
BEVERLY HILLS, Calif.—Jere¬
investments, the decline in pay(Special to The Financial Chronicle)
miah Casselman and Joseph W.

building of rental apartment units.

interest

and

me vate

that to appraise the present mortgage situation andmake sensible
predictions of the future, we must
look not only at the mortgage
market itself but at the broad
economic picture. Specifically, in

Mortgage Bankers Associa^
L Georgia, stated his
basic Philosophy with respect to
this question, as .follows:
'1 believe it is the function of
Government to_encouiage private
enterprise to do the job and to
take direct action only where it is
necessary to fill in the gaps left
b^ pnvate enterprise. This is a
traditional American principle
™ ?
,uS yc!u
easier t°
stale than to apply to specific

purchases,

income will be over

be remedied,
value

hook

stock

of current

com-

its

could

meetings

Admittprt
bank>s

v»te lending institutions to meet

traditionally

department

of in-grown control by of-

SOUrce

these alternatives
hope of raising the
housing or providing
ahywhere near enough homes such
as most Americans will want in
'980, when the median family

pace

of older houses in

trust

are now

times, and in the past

seems

national figures.

Sales Depend Upon Resales
These facts

^he

Mnph

hanir

nancing recrements have been siQn to 20
date, the stock has
effectively made available by pri- hanced

Nummary
it

pt-ppI fimnp-

the bank for heirs and their votes

cycle.

"Neither

price rise occurred between 1947
anrJ
1QF»9.'
sinpp
thpn
PYistim'
and
1952;
since
tnen
existing
prices

year

1948

larger,
better
equipped
houses
For existing houses, most of the

house

re-

thp

purchased offers much
The price standard of

that
houses during 1954-56.
units

spending

pattern

<?Hkp

hpad*

all

nrp

yated by the virtual certainty ficers. This should

modify-and

Summarizing,

postwar period. Only one-fourth a year it could take 40 years to
of the spending units that pur- got today's junkers off the market
chased
houses
in
1947-49
paid and put replacement on a 235$10,000

present

Summary

aie

and existing houses have

new

the

change»

needed each year just to keep up

existing

were

One-third

sumers

Two-thirds

House and Home,

1556 issue of

houses
in 1956,
of Con-

survey

can

nffir>pr<?

+h~

Hirprtnra

^ famiiy stock interests

to further price increases, thus

outlin^^ part likely to undergo any is great mortgage demands.essential
sp0nsibility and control
not
Housing is an

purchased
occupancy

Finances.

sumer

existing population demands.
Some idea
*
-' of this task was
non-farm of an editorial inthe November,
..

all

spending units
for

and

new

$5,64°.

was

Thp nrpcpnt

nf indnstrv with

„.

homes

" y

prj+jPicm

nniv

instit„Hnr,*

early this year, compared withThe housing industry of our for Government assistance and years from now there will be a
only three-tenths in the earlier country faces the tremendous task regulation will be minimized. But dramatic increase in population
period." :
.
^ . of keeping housing production until you do, or at least give sub- and family formation which will
Mn 1956 the median income of moving at levels consistent with staiitially more evidence that you again challenge the ability of pripurchasers

wr;fpr><j

ti-p

guide our committee in the hear- and distribute them in a manner aggravating the entire situation.
with incomes of ings which will be held.
that meets the demands and the This problem is further aggra-

consumers

$5,000

„

the middle income group cannot
"Whether the immediate and
afford to buy at present price long-term housing needs of the
levels and Congress expects to do American people will be met with
something about the situation. As a small or large degree of GovChairman of the Committee on eminent assistance is a decision
Mortgage investments of the Na- that is as much the responsibility
tional Association, I would whole—of you in private mortgage bankheartedly welcome any comments ing as it is for us in the Congress,

vaae

The Security
I like Best

mechanism that will assist mil- has slowed down,bthere has been
Hons'of Americans to obtain bet- an outcry for mortgage money
ter. housing, at prices they can which has impelled 'Congress to
afford.
«
,
,
* . step up its attempts to have Gov-

codes and ordinances.

home

has somewhat slowed down as in- Continued from
before in our history, to cheated by the Consumer Survey.
*
and operate the market
(3) Even though the demand

prominent being higher banking is being called upon, as

and increasingly restrictive build-

concentrated large-

was

most

(1571)

land and land development costs,

recent

ownership

the

Chronicle

•

San Diego

•

Spokane

San Jose

•

I.os Angeles

Cleveland
Oakland

•

Fresno

•

Seattle

Louisville

•
•

•

Eureka

Portland

•

Indianapolis

•

Sacramento

Palo Alto

•

Oxnard

Stock Exch.

The Commercial and Financial Chronicle

(1572)

firms to its

die

STREETE

its

sales

increase

same

didn't

help either that layoffs fiscal year. The company is
at
Republic dominated the preparing to effect a 5-tor-4
stock market this week when labor
picture in the plane stock split once stockholder
the industrial average finally field. There was restrained approval is on the record and
broke through the February enthusiasm for the makers of dividend, increased last year*
resistance level on the down¬ rocket fuels, with U. S. Borax is slated to be boosted again
side.

And, while the list did

find

some

support both from

able

was

still

not

showing and it is

from

For market technicians the

430 for it

solid

was

now

in this

resistance

the break
dent's
1955.

around

area

that

met

was

following the Presi¬

heart

attack

Whether

late

not this

indicated is moot. And, al¬
though penetration of the 454

level constituted

❖

bear

mar¬

were

from

industry.
either,

heavy

than

not,

automotive

the

issues

didn't help, diversification

that there

sort

the

times

debate

some

was

eral

and

with

extends to

signal,
on

those

any

With Schirmer, Atherton

the

"Chronicle"

They are presented
those of the author only.]

(Special to The Financial Chronicle)

.BANGOR, Me.—John T. Kelleher is now with Schirmer, Atner-

With Penington, Colket

ton

Co.

of Boston.

PHILADELPHIA, Pa.—Pening¬
ton, Colket & Co., 123 South Broad
Street, members of leading stock

(Special to The Financial Chronicle)

exchanges, announce that William
B. Brown, Jr. has become asso¬

DETROIT, Mich. — Harold A.
Hein has joined the staff of R. F.
Campeau
Building.

with

them

registered

R. F.

Campeau Adds

Company,

Penobscot

NSTA

Notes

the

Colgate Palmolive is some¬
there was little
running well into next year. thing of a rarity in that it
feature, particu¬
hasn't
been „• influenced
by
larly since there have been
Even in cases where yields either the enthusiasm of
two bear signals given in the
of better than 6% were avail¬ earlier this year, or the pes¬
long runup and both subse¬
able before this week's sell¬ simism of late, and has pur¬
quently proved to be false
calm,
unemotional
ing, such as in Wheeling, Re¬ sued a
ones.
#
$
*
public and National Steel, this market life. So far this year
fact was of little help and the issue has held in a raqge
There wasn't much to cull
of only eight points and lately
new lows for the issues were
out in the way of issues buck¬
posted without t o o much has been /hovering around
ing the list with determina¬
ket

stress

with

Co., 20.9 South La Salle Street-

this

necessarily at

coincide

Ame

Chris¬

sev¬

items

hundred

various

additions

expressed

not

111.—Ben

with Dempsey-Tegeler

its

pharmaceutical line. This is a
media going on around the fast
growing field and the
question
of whether' steel company estimates that prod¬
capacity hasn't already out¬ ucts introduced only since the
run
demand, with expansions time of the Korean War now
already in progress both add¬ account for two-thirds of
■:
ing substantially to this year's sales.
facilities

views
do

now

investment

Steels
side

❖

[The

representative.

Laboratories

orders

Doubtful Signals

level

the

chiefly because there is still
no
sign of a sharp pickup in

next.

crucial

Allied

tian is

ciated

after

new

stock distribution.

far

was

the

comparative newcomer to
big time listing since until
August it was a Midwest
Stock Exchange item. Despite
its newness, it is a high-rank¬
ing item on lists of high-grade

❖

to the

market to demonstrate what
comes

fuels,

standout.

conclusive
up

trend

while Olin Mathieson, despite
its contract to get going on

bargain-hunting and short
covering when the average high-energy
reached around the 450 level,

the

counter

("Special to The Financial Chronicle)

CHICAGO,
&

article

Thursday, October 10, 1957

Dempsey-Tegeler Adds

the

over

year ago, to cross the $100
million mark in the 1957-58

Something like two years*
work was wiped out by the

actual

profit for the year and
pinspotter is the fastest
than doubled. They are still
growing item in the com¬
climbing and in position, on pany's line.

THE MARKET... AND YOU
By WALLACE

family and in the

decade

last

...

this

•

NATIONAL SECURITY TRADERS ASSOCIATION

.The

tional

posed

Nominating Committee of the
Security Traders Association has
the following slate to be voted

Na¬
pro¬

into

office at the Convention:

President—Robert D. Diehl, Paine, Web¬
ber, Jackson & Curtis, Los Angeles, Calif.
First Vice-President
Lester J. Thorsen,
Glore Forgan & Co., Chicago, 111.
Second Vice-President—Edward J.
Kelly,
Carl M. Loeb Rhoades & Co., New
—

Secretary
Landstreet

Tenn.i

York, N. Y.
II, Clark,
Nashville,

Nelson

Kirkpatrick,

Inc.,

.
,

Treasurer

Bros. &

William

—

Charles A.

Bodie,
Boyce, Baltimore, Md.
—

Jr.,

Stein

dead center.

v
-T'j
tion, except that some of the pressure on them. For that
*
I
'1"-:
matter the two top
i.'-t *" j"
producers
'• 1 *
'•
prime missile concerns, and
—Bethlehem and U. S. Steel
Colgate was no star in the
especially those with an im¬
—in the 5% or better bracket earnings department last
portant role in this country's
were
also
reactionary and year, with profits, trimmed
satellite work, were in de¬
rather
reached new low territory.
sharply by heavy
mand on the theory that mis¬
promotional expenses to
sile work will get new stress
Firmer Drugs
launch new products. Sales,
in the defense
budget followDrug shares continued to which climbed to the half bil¬
ing Russia's successful
give a good account, generally lion mark last year, are ex¬
launching of an artificial moon
hovering around their 1957 pected to show a slight trim
to beat us to the
punch.
highs although there was an this year but, because the
*
*
*
.

•,

'•

•

occasional
The switch to missiles

was

to some extent at the
expense

Allied

disruption,

Laboratories

that the demand for flu

in extra

word
vac¬

expenses will be elimi¬
nated, net profit is expected

materially higher. For
cine would be
tapering off the future, the company has
ficial denials that
any great sharply as the
itself
spotty epidem¬ shown
acutely
costincrease in spending is im¬
ics showed
signs of abating.
conscious
recently and has
minent were taken
generally
❖
:|s
sjs
undertaken
economy
meas¬
as
meaning: funds already
Vick Chemical was able to ures that still give it a chance
available will be shifted to
to show an improved
stand out
earnings
the
prominently, show¬
missile-makers such as
ing superior strength in de¬ trend not only this year but
Martin which has a
leading
also for a while ahead.
role in our own satellite sultory markets-that even in¬
cluded a small plus
$jgn when
plans.
Bulls on Bowling
the list was
violating its sup¬
In the recreation field, the
Sinking Aircrafts
posed resistance level. The
interest was definitely cen¬
Some of the prime aircraft
company has come a long way
tered on bowling. American
shares were given to
sinking from when it was famous
Machine & Foundry reported
when the list was
heavy and mostly for its single cold
record sales and earnings for
the fighter plane
outfits, such remedy. Over nearly two dec¬
the first half of the year but
as
Grumman and Republic ades the
company has been
this wasn't much of a prop in
were
definitely laggard. It carefully adding other drug
the
sick
markets
and
the

of the aircraft issues since of¬

stock

lately

able at

COLORADO RESOURCES, INC.

Unlike

100,000 SHARES COMMON STOCK

automatic

OFFERING
The

PRICE $1.00

PER SHARE

Corporation is engaged in the mining business,
and

owns

various

the

State

uranium

properties
Colorado

Orders will be filled
by

4. T. SEVER & CO.

50 BROAD STREET

New York 4, N. Y.

points from

chines,

its year's

which
on

means

revenue.

last

year

nue,

these

are

estimates

funds

Convention, Nov.<&3-6, 1957, at the Homestead Hotel, Hot

Co., Richmond, Va. is Chairman

the

Entertainment

Com¬

mittee.
Several

meetings are scheduled to discuss the Over-t-heMarket, by far the largest in the country. Endeavor will
to increase the public understanding of how vital the
over-the-counter security
traders are to the economy of our
country.
The principal speaker at the convention will be Edward N.
Gadsby, newly designated Chairman of the Securities & Exchange
Commission.
Chairman Gadsby succeeds to the vacancy created
by the resignation of J. Sinclair Armstrong.
Counter
be

made

SECURITY TRADERS ASSOCIATION OF NEW YORK
•

The

members

Security Traders Association of New York is reminding
that their annual cocktail party and dinner dance will

be held Oct.

in the Grand Ballroom of the

Hotel

Commodore.

Cocktails will be served at 7 p.m., with dinner at 8:30.
informal.

It will be

Tariff is $30 per couple. Reservations may be made with the
Chairman, Arnold J. Wechsler, Ogden, Wechsler & Co.

"FOR SALE"
These Beautifully Bound Sets of
"CHRONICLES"

accounted

for

company's

1928—inclusive

1956—inclusive

1926

1952—inclusive

1939—inclusive

Available fpr immediate sale in New York

rentals

that

to
to

1914

in¬

1895
1908

out¬

are

around half of the

Bodie, Jr.

Edward H. Welch, Sincere & Co., Chicago, 111. is Chairman of
the Convention Committee and Garnett O. Lee, Jr., Scott, Horner

City

Subject to prior sale.

only accounted for
eighth of total reve¬

some

Springs, Va.

to continu¬

While

Charle3

m a

sold

are

Security Traders Association will hold its 24tn

rental basis with

ing

Annual

William rteison

Edward J. Kelly

Thorsen

peak.

pin-setting

all that this

about

some

Brunswick-Balke's

right, those of AMF
stalled

The National

has been avail¬

discount of

Lester

Write: Edwin L. Beck
Phone:

c/o Chronicle, 25 Park Place

REctor 2-9570

New York

7, N. Y.

Volume 186

Number 5680

...

The

Commercial

(1573)

and Financial Chronicle

v>^X*XvXv/>X'X<vX<->XvX,Xv!<*'vX*v*'*

mm&

& "

"
£&/£%»£*>?

S
■""**

\^or"^
•::ooowOW:#Jv£iv

../I
WhenLockheed
behavior

wanted

of the giant skis

Hercules prop jet

plane exactly what

tion

are

distance, dust,

of the TV

their 62 ton C-130

hazardous locations—even to peer

inside

It takes you

"4,

everything.

I T&T closed-

happening.

Closed-circuit television systems

International

'/*'

camera

to overcome

anywhere—and

This is another

sees

developed by

boiler!

major contribution in visual

telecommunication and electronic controls
creative

by the

engineering of I T&T.

Telephone and Telegraph Corpora¬

proving to be valuable tools for industry,

management,

and the military.

When there's

need

to see,

you can use

the

eyes

INTERNATIONAL TELEPHONE AND TELEGRAPH
For information about Closed-Circuit Television

CORPORATION, 67 Broad Street, New York, N. Y.

Systems write Industrial Products Division of TT&T, 100

,j'

>XxViiv&;Wl4i-y.ji

Knowing Look

show engineers inside the

was

Si'

•%>./ •< >

watch the in-flight

—they used

circuit TV system to

Kingsland Road, Clifton, N.J.

The Commercial and Financial Chronicle

(1574)

trade unions

The Coming Indnsliial
Clash in Great Britain

not likely to give

are

E. F. Hutton's newest branch office is
equipped with a time
capsule containing predictions by prominent industry heads-

have come to realize the need for

holding
major

failure

The

firm.

produce

would

strike

the possibility of a trade unionDr. Einzig hopes that industry
and government will firmly resist excessive labor claims in
the offing. Were it not for labor membership's apathy, the
writer reports the insignificant fraction of Communists would
not determine policy and, as a result, Walter Reuther's recent

The

government industrial clash,

counsel

perfectly safe for the

Field, Richards & Co.

the

Appoints V.-Ps.

tential

Richards

Co.,

oldest

mis¬

take. Many

still

carrying their
short

positions
in sterling in

the

hope that,
all, it
might be de¬

obliged to call

after

the

more sens¬

among
them have
1

c o n c

that

Government is

u s

Brit¬

the

determined to

changed, and that it is in

un¬

posi¬

it is the Government's

now

policy td
defend the
stability of sterling even at the
cost of unemployment. This means
that

the

unions

trade

can

their bargaining power as a result
of an increase of the number of

unemployed

workers.

avoid

in their

conceivable

to make concessions and to strike

attacks,

rate

any

for the next year or so. The bal¬
ance of payments position remains

reasonably good, and the seasonal
import surplus during the last

own

interest to be

willing

reasonable compromise with the

Government

with

and

employers

who, after all, are far from keen
on
producing unemployment.

be covered out of the

$500 million credit from the Ex¬
port-Import
Bank.
Sterling
is
therefore
perfectly 'safe in the
future.

And

too

costly

carry
short positions for 12
months or more, in the expecta¬

tion that sterling may not be able
to resist during the
autumn of
1958.

Unfortunately the trade unions
to have lost their heads

seem

pletely. They

speculators

many

are

used to being
that it is difficult

for them to realize

that,

policy of full employment
costs

has

will

been

cease

universe.

trade

abandoned,

be
is

the

lords

true,

the

large pro¬

rank

unionists

all

they

file

and

inclined

unwilling to take their losses.
They hope that a further spectacu¬

reasonable.

lar

ovation given at the recent Trade
Unions
Congress to Mr. Walter
Reuther
who, when addressing

advance

wages

Britain

would undermine the stability of

sterling.
with

Everybody

much

interest

is. awaiting
the -outcome

of the wages disputes in
progress,
in particular of the claim of rail¬

employees for a 10% increase.
If the practice of recent
years, to

way

concede

about

half

the

de¬

mands, should continue to be ap¬
plied, it would seal the fate of
sterling. Devaluation would then
be regarded as

a mere

question of

time.

ances

fested

recent public utter¬

trade

Socialist

labor is in

union

leaders and

completely failed in its object
inducing the trade unions to

even

the

enthusiastic

moderation

pressing their claims

to moderate Their claims.

the

trade

unions

extremist

the

has

come

influence, owing
of the large

indifference

senior

official, and only 6% of the
bers troubled to vote.

Communist-supported

date

elected.

was

The

candi¬

Labor

vote.

There is

reason

this

aspect

fact

that

trade

determined

the

ment's intention to choose

attitude

the

example set by
owned
industries. The
the

British

Transport

Commission towards the claims of

railway employees will constitute

moment

ceed.

by the Government
claims.

Government
firmer

This

con¬

tibie

the

hoped to adopt

attitude, driven
sterling.

the threat to

Monetary
In

any

monetary
more

case,

and

its announcement

that

even

York

shall

witness

before

very

are

some

long.

that

major
The

period

history

ics

it makes

tion

and

the

world * 1 b

country."

dersttiff *

ity

vsjs

have

with

Neville

formed
<

offices

Bradley
at

229

Both

technique

general
;

Hawthorne

securities

formerly

miles

have

limitation is

for high speed
is expensive.

principally

That problem

will be
c

have

■

always

Co.,
was

not yet

some

should be

we
,

«:

"In

home

SKINNER,

the

television set

will

like
In

1979

soft
ago.

upward and
limit to

economic
We

growth and

the

iter

spond

voice

re¬

to his

and

au-

tomatica 11 y

type the letter.

"Among the
items

formerly
Company.

are

that

expansion.

just
a new

elec¬

nucl

rich

and

eonics,

with

the

promise of
new discover¬
ies which will
have

'dictate'

letters

should

a period of unparalleled oppor¬
tunity for our nation's continued

lutionary

office,

decades

two

wall

executive

will

was

pact

revo¬

im¬
com¬

munications
methods
our

and

way

living. Parti"
U1 a r 1 y
rapid

Walter P. Marshall

advances have
been

made

by Western Union in
the past few years in the
leasing
of

closed

systems
ment,

circuit

and

processing

communication

industry and
the

and

govern¬

facsimile, data

microwave

beam

could be taken
Skinner,

jr.

fields.

for granted in

Macwithey

with J. K. Rice & Co.

hung

mirror.

the

affiliated

the

Blyth & Co., Inc., 135 South

was

We are

20 years

foreseeable

tronics

JR.

business world

Co., 210 West

away Oct. 6 at the age of 82. Prior
to his retirement
many years ago

"The

era

small transistorized computers will
be taking over many, tasks.
The

ex¬

period of prosperity

President, Philco Corporation
1

continues

entering

in 1979."

JAMES

past.

192%
did

President, Western Union

McCormick

born, will be market

Overall,

periencing

the

WALTER P. MARSHALL
T.

com¬

will
fall by the wayside while others,
leaders.

In
can

well-

Many

con¬

progress."

our

invest¬
must

trend

there; is

the case, secu¬

rities

look

consuming

The

panies

Edward Louis Macwithey passed

the

New

confidently and

can

drinks than

(Special to The Financial Chronicle)

E. L.

WILLIAM E. ROBINSON

now

t y p e w r

9:00

arrive

use

and it will

Salle Street.

Angeles

be enjoyed than in 1957.
forecasting
the
future
we

ANGELES, Calif.—Robert

with Central Republic

leaves

man

will

Joins Blyth & Co., Inc.

with

the

Los

should

morning

"We

Seventh Street.

and

servatively anticipate that in 1979
at least 100%
more
soft drinks

(Special to The Financial Chronicle)

become

over-

who

the

With C. A. Botzum

C. A. Botzum

years

will

known

FAIRFIELD, Calif .—Patrick H.
Healey has been added to the staff
of
McGinty & Edman, Govern¬
ment Employees Building.

with

within

McCORMICK

spectac¬

-as

(Special to The Financial Chronicle)

Bachino has

President, Coca Cola Company

LOS

hour

high¬

super

ular rises. But

McGinty & Edman Add

1,000

is known. The

travel in outer space,

ment

BAKERSFIELD, Calif. —Doyle
Haney has become associated
MacCormack

build

plane which

will go

economic one,

makes

inesses

Brothers

(Special to The Financial Chronicle)

Evans

neces-

sary
a

selective.

with

lane of

of certain bus¬

Bradley

With Evans MacCormack

American Airlines

the

securities

the

-v

«...

c. R. SMITH;

President,

place

it obvious that

were

engage

business.

our

* "

PALO ALTO, Calif.—James W.

and

man¬

■

atomic
to

world,-

(Special to The Financial Chronicle)

Bradley

power

Bradley Brothers Open

;
*

"The

major contribu¬

continuing prosperity

may

availabil¬

and

was

outstand¬

widespread

solar energy,

Exchanges.
Mr.
formerly proprietor of
Mr. Rozelle

well

could

as an

S;=

CHICAGO, 111. —Walter H.
for Eucker, Jr., has become associated

Meanwhile the chances

The

York about 8:30 a.m."

Stock

was

■

But

by a Government chosen
by the electorate or by trade union
leaders chosen by Moscow.
•

dry.

"Anticipating such gigantic de¬
velopments

and

if an obviously unjus¬
major strike should inflict
considerable hardship on the pub¬
lic, the Government may decide

longer bound by the policy of strikes

New

associated with him.

tified

that the time
may have come
a showdown.
It would go to the

It will be invisible, but will keep

to¬

❖

be ruled

the Government's

measures,

way in which wage
inflation has been allowed to pro¬

country, with the slogan that the
country has to decide whether to

Employment
Stability

versus

the

G. J. Case & Co.

general election.

present the electorate is strong¬
ly against the Government, largely

was prepared to face a strike
just
before Christmas
1953, it was or¬

the

Case

right

owing to the

dered

Midwest

the supreme test. Four
years ago,
when the Transport Commission

cede

EDWARD

associated with .McCormick
Co., 231 South La Salle Street,
of

electronic umbrella to protect him.

that

come

challenge trade union

dictatorship at

"If the weather bureau predicts

automo¬

President, American Stock Exch.

believe that

sist

CHICAGO, 111.—Gaylord J. Case
Logan A. Rozelle have be1

and

information

rain, the pedestrian will have

over.

s:*.

quarter of

1979

could

from other than

elec¬

sage service and it is not unrealis¬

air-condi¬

tic, in looking ahead to 1979, to
forecast that non-message
services
will grow sufficiently to

include

tric

refrigerators

tioners,

electronic

cooking, tran¬
injection systems
automobilesandelectronic

sistorized

Tor

and

fuel

■

the doctor.

C. R. Smith

union

the

network
where elec¬

Colbert

(Special to The Financial Chronicle)

situation—the

policy is
insignificant

because

By then, the onecar family could be in the minority
and a large proportion of families
may be using three or more cars."

McCormick & Co.

1675
Chester
Avenue.
He
formerly with Walston & Co.

Membership Apathy

could take

Case & Rozelle Join

candidate received the active sup¬

largely
publicly

whether

seen

second

be relayed by telephone to

tronic controls

winning
total

office
could

way

17.

members

nate the need to visit the doctor's

guidance

mem¬

result,

njunist influence — will receive
much publicity. It is the Govern¬

its

West

Oct.

will

proper

for Courts
Eighth Street, will be ad¬
mitted to partnership in the firm
manager

which

It would elimi-

user.

them

Jr.,
local
& Co., Ill

miniature computer

meter'

by the

worn

the

only

Tenn.—

Farmer,

'health

ual

with B. C. Morton & Co.

elected

object,

attain

well be

may

of pos¬

require

Admit S. B. Farmer

neering

that of inducing employers to re¬
these claims.
This
depends

will

realm

morrow

CHATTANOOGA,

automobiles.

know

within

Union1

Courts & Co. Will

Stewart

them, v It

biles

Avenue -to

Union

sibility

majority of their members. Quite
recently the Amalgamated Engi¬

fraction of the trade
unionists, and
that as a result it is under Com-

remains to be

now

the

for

the

and

politicians, industrial port of less than 4% of the
members who are entitled to
a
fighting mood. Eve-

abstain from
or

advised

under

the increase of the Bank
rate to 7 % and the other measures
of

Commerce Building.

reasonableness. But the leadership

dently
has

This sentiment mani¬

itself

them

the

Judging by

roads
•now

controls

safety

ing example of creative electron¬

President, Chrysler Corporation

■

■L "The 1979 counterpart of today's
family car may not even travel on

Mr.

Carmel

office

industry

go down in

Manager oV
the municipal department of the

the

once

Avenue

L. L. COLBERT

trading;-

com¬

are so

to**dictate

able

portion

Nevertheless,

Madison

the

Another electronic development

branch of¬

new

Grischy

the Cincinnati

Cleveland

time

and

vestment firm.

department in

Clifford H. Grischy

were

firms

hence.

him

Manager of

the

this, they would be well advised

tion to defend sterling against any

near

office.

longer dictate their terms. They
ion run the risk of a weakening of

maintain the present parities

can

Mr.

their

opening day, Sept. 30, 1957. The
capsule will be unearthed
22 years hence, on 75th anniver¬
sary of nationwide, securities in¬

in¬

floor of E. F. Hut-

room

650

and

incased beneath

was

the

come

But

inclosure

po¬

time

Vice-

Preside

feel

declared

But

ible

quarter

Carmel

business

The forecasts

Company's

fice

Willard

halt in the credit

ton &

Grischy and

squeeze.

valued.

ish

would

Government

for

the board

appointed

Clifford

inflationary
measures, . knowing
very well that if those measures
should
result
in
unemployment

are

Dr. Paul Einzig

has

could afford to disregard the dis¬

the

their company

capsule that

houses,

prevent unemployment, the trade
unions held all the trumps. They

have

made

invest¬

ment

maintaining full employment at
all costs,
have already changed
the
balance
of
power
between
speculators must have reluctantly employers and employees. So long
as
it was the official policy to
realized that

from

are

statements

many

leaders

written

one

of Cleveland's

LONDON, Eng.—Judging by the
tone
of sterling
since the
closing days of September, many

the

dustry in 1979

—

Building,

future.

near

for

country's business and finan¬

cial

Field,
Union Central

Ohio

CINCINNATI,

firm

they

outlook

following excerpts
of

some

moderation and reasonableness would be followed.

Claims sterling is

business

the

22 years

would prepare the way for a more
reasonable attitude.

Thursday, October 10, 1957

Business Predictions for 1979

and

Government

And

struggle.
employers

without

power

sobering effect on the unions and

By PAUL EINZIG

Writing from England

their

..,

result,

than

one

our revenues now comes

telegraphic

mes¬

produce

much

half'of

our

revenues."

• •

Volume 186

Number 5680

revenue

C. LAWRENCE

RUDDICK

that will be reaped there¬

"Early in 1956, the New York
Stock Exchange's census of shareownership es¬
timated the

entertainment,

certain

that

the

(Special to The Financial

but it seems
figures in both

astronomical."

instances will be

Drive

business.

dividual

share, owners
of

porations in
at.

S /t a t e s

ated

United

1000

630,000. This

Officers

securities

Allen

are

formerly

Shaw

proprietor

Jr. has been added to the staff
Dempsey-Tegeler & Co., Mid¬
land Savings Bank Building.

son,

wood Boulevard.

Joins Garrett-Bromfield

Joins R. D. Standish
(Special to The Financial

BOULDER,' Colo.
Weiffenbach

with R.

TCC^vith which Mr. Bayliss was

(Special to The Financial Chronicle)

Chronicle)

—

now

Ervin

connected

Standish Investments

1227 Walnut Street,

'associated.

& Co. in Boston.?

affiliated

Mr. Shaw was

Secretary.

become

has

Finerman

DENVER,
has

Hufford

Garrett

Colo. — Eugene
joined the staff

Bromfield

Seventeenth

Street,

members

half

million shareRoddick C. Lawrence

owners.

projection of

would indi¬
population by
ranging between 15 and 20

this

1976

growth

rate

cate

shareowner

million."
*

<•

GEORGE ROMNEY

President, American Motors
"By 1979 America's
safe

have

will

industry
and

automobile
to

returned

sen¬

sible motor V
car

design.

The attractive,
f

t ional,

u n c

e c

onomical,

compact car
have

will

largely forced
the

into

na¬

tion's junk¬

the

yards

flashy, bulky, •"
chromium-

splashed,
body-onheavy

George Romney

frame

♦

vehicles of the

1950's.

late

highways

America's

will be safer because motor vehi¬

unit

cles will be built on a single
*

the very

From

principle."
*

deposit in
C.

COX

"The

requirements

for

copper,

dividends

despite substitution of other ma¬
terials will continue to grow. The
business

Kennecott

Copper

future than

the

older

metals

now

being
d

p r o

such
per,

u c e

Mail,

;

Charles R.

Cax

necott will

the

-have
-

coupon

postage.'

others

Wmrnwmmm

|
Dividend Days

14 Extra

mm.

M-M-yyy<

The money you

will

which

will

greatly increased importance

in the industrial scene."
**•

below. The Lincoln pays
•

o r

processing the newer metals such
as titanium, columbium, zirconium,
uranium,/and

■M-vA

producing

use

all the

convenient to Save-By-.

cop*

num,

and

invited. If it's

molybde¬
silver,
gold, Ken¬

Savings Account

joint

$10,000 ($20,000 in a

In ad¬
to

Id'fTim Miflu W7!f

Savings Account at The Lincoln.

.from $5 to:
Trust Ac- ;
count). Charitable and Religious, Fiduciary,,
Union, Pension and Trust Accounts are also

fied than it is

dition

|7«K9 |V

today.. Start with any amount

diversi¬

today.

Come in.and open your

1 979 will
more

Cor¬

poration

first

your

paid'and compounded. You'll
better way to build for the

are

find' there's

make

you

three months-Tour times a year-

And every

day

Savings Account at The Lincoln,

begin earning this.big bank's big dividend.

you
President, Kennecott Copper Corp.

earn

deposit on or before

October 14th

dividends from October 1 st.

■&y?y.mz

WmUm
Mi

'I*

BARNEY BALABAN

President, Paramount Pictures
•

(

Corporation

;

"Recent technological discover¬

ies, fostered by our industry and
television, will result in quality
shows being seen simultaneously
not

only

thousands

theatres

but

With Resources of
and the following

also

home

nom¬

expense

basis.

hesitate to

estimate

how

millions
of people 20
years
from

many

now

Barney

Baiauan

the

same

will

seeing
same

jj-i'

|
•

...

the

show

time and the amount of

OFFICE

(6)*

RIDGE

Fifth Ave. cor. 75th St. (9)
BRIGHTON

BEACH

pay-as-

you-see

BAY

■

inal

MAIN

the

world at

Broadway and Union Ave.

every

Brighton Beach Ave. cor.

Coney Island Ave.

SCFC-1-3B

r To: The Lincoln Savings Bank

and Savings Bank
over f565,000,000 I
offices in Brooklyn.

ev¬

erywhere

The Life Insurance

(35)

Broadway & Union Avenue, Brooklyn 6, N.T.
Savings Account—7
□ Individual Account in my name
□ Joint Account with.
□ Trust Account for.
at the'office checked below. 1 am enclosing my

Please open a

Church Ave. cor.

Nostrand Ave. (26)
1

WILLIAMSBURG

Graham Ave. and Broadway
*
Postal Zone •

Member Federal

Deposit Insurance

(6)
„

■

Corporation

;

CITY,

first deposit of $_

□

FLATBUSH

ZONE, STATE

Co.,

the Midwest Stock Exchange.

1952

about

He has

Farmington Avenue.

engage

DENVER, Colo.—Eugene E. Nil-

ANGELES, Calif.—Morris

Huntington with Leo Schoenbrun,-1385 West-

Vice-President; and Paul A. Schu¬
mann,.

Andrews & Co.,

recently been with Hayden, Stone

^represented an
saverage a ri-\
nual increased
since

with

;

III, is now affili¬

nest T. Andrews,

2304

President; Jack Bayliss,

Shaw,

Conn—Er¬

WEST HARTFORD,

public cor¬

the

With E. T. Andrews
(Special to The Financial Chronicle)

number of in-

offices

with

LOS

Calif. — Shaw,
has been formed

&Co.

-Bayliss

(Special to The Financial Chronicle)

Chronicle)

MARINO,

SAN

Dempsey-Tegeler Adds

With Leo Schoenbrun

Shaw, Bayliss

Form

dispensers

by by the makers and

Vice-President, N. Y. S. E.

(1575)

Financial Chronicle

The Commercial and

...

S.
of
650

The Commercial and Financial Chronicle

(1576)

LETTER TO THE EDITOR:

Consideration of gold withdraw¬
als (net exports involving adjust¬

Spahi Places General Welfare

ments

Ahead of Higher Gold Prce

for

mark)

gold

held

dollar

balances

amounts

the

volved and the effect
stock

prj^/for gold, Dr.

contrary to experience—be exercised at one time than it is to
contend that all

foreign-short-term claims and Federal debt

ought to be set

claimants to

gold supply.

our

Only

through money and hank deposits could claims for gold be
made, Dr. Spahr points out, and predictions as to such behavior can best be determined by actual table of experience.
The "Letter" concludes that
1929

crash,

on that basis, including the
postgold supply is more than adequate for redeem¬
able gold standard now,

our

EdiUyr, Commercial and Financial
Chronicle:
In

your

going

w*\

daily; but

it is reflected in the

issue of Sept. 27, Mr.

Franz Pick had

and selling is

article in which

contended, among other things,
that our gold supply was too small
to permit in¬
stitution

of) a

redeemable

again.

fallacies

should

revealed

since his opin¬
ions
seem
to

Pick

also

correct

departed from
when he stated

"We

b~«iwes

this

without mortgage, about $10
$13 billion of gold. Should we
return to a gold coin
standard,
even after a devaluation and with
own,

double

amount

"Circulation of banknotes
Bank Deposits

$31.0
220.0

Debt

275.0

4.5%

the

5.7%.

The

gold

our

There is

valid argument for
dollar..

our

National

Board

of Fire

Under¬

writers reported fire losses

through

August

nearly

like period
saw

above

of 1956, and that

increase.

big

$526.0

"All of these items
be

and

convertible

into

are

Federal

such

gold.

would

If only

covered by a 20% gold cover, more
than $100 billion of the yellow

metal would be necessary. If cov¬
ered by only 15%, we would need
about $79 billion of gold."
♦

solution to
than

Surely, there is

our

good

other

currency problems,

devaluation,

which

a 100% increase of the socalled official gold price."
The proper method of determin¬

means

ing whether a nation's gold stock
is adequate to permit
redemption
is to compute the ratio of the
gold
stock to non-gold money and bank

deposits

and

then

invalid

would be

claims

against insurance compa¬
against their relatively small
cash reserves
or
the potential
claims of depositors in banks

nies

against the

reserves

banks.

cash held

dealing with such
potential claims correct analysis
requires that one determine actual

down

the river of another

devaluation of
of

them

fail

our

currency.

understand

course,
facet of the

respect evidence and correct prin¬

ciple,
in

they willfully distort both,

effort to obtain

they seek—some
the

case

the

results

of which,

in
gold mine inter¬

some

far

evidence

available.

gold stock
(that is,
out of the Treasury and Federal
Reserve banks) was
approximately
into

drawn

3%.

The

Executive Vice-President

casualty units which,

range

one-half

over

The

ratio

1957

loss

than

1957

1956

ratio

than

000

of June

drawn

into

amount

000,000.

26-30,

1957)

circulation

were

but

was

little

2/10ths of 1 percent¬
The combined ratio put

point.

$679,-

That

would

amount

approximately .027% of the

(Special to The Financial Chronicle)

has

become

associated

with

non-

the

ratio

actual

And

exercise

tios

was

8.6%.

The range of the

yearly ratios, 1915-1932
'6.7 to 10.9%.
-

from.

was

percentages of

Company's Procedure
Mr. Pick added in Federal debt
as

claim against our gold stock.

If one is to pursue that indefensible

procedure, he should add in all
state, local, and private debt, all
stocks, every form of wealth that
could be sold.
be

sold

against
when

can

All wealth that
be

buys it.

wealth

can

claim

nation's gold stock.

non-gold

someone

made

zero.

"ears

the

During

approximately

average

years

were

4.5%.

calculated

would

If
for

measure

portations of gold.

and

affects

the markets

This item, of course,
surplus account. Inciden¬
number of companies at

tally a
the mid-year date utilized what in
essence

their

convention values

are

security holdings.

generally. However, we
getting closer to the time
more

effective,

and, probably, when equities will
have bottomed.
Nineteen

may

fifty-seven statement
well be black enough

that the.investor who

buys only
things are dark will have
opportunity to add fire-casualty

when
an

stocks.

Purchases at this juncture
surely will have turned out to be
wiser

than

six

months

year

reserve

taxes

higher.

were

SAN
ard

with

FRANCISCO, Cal.—Rich¬
Bibbero

Scott,

now

Bancroft

affiliated

Co.,

235

Montgomery Street.

only

of the figure

Scott, Bancroft

(Special to The Financial Chronicle)

un¬

With First of Iowa

for

Manager

for Central Republic
Company.

other

(Special to The Financial Chronicle)

than the bond

The

companies,

domestic

third

Chronicle)

holding units.

favorable

item

LOS

was

ANGELES, Calif.—Jane K.
Momoyo has been added to the

increase

(roughly

of
about
$5,200,000 staff of Taiyo Securities
Company
12^2%) in the dividend 208 South San Pedro Street.

With

Quarterly Analysis

Wi*herspoon Co.

(Special to The Financial Chronicle)

LOS

13 N. Y. CITY

ANGELES, Calif.—Charles

Wiles

has

become

BANK STOCKS

(Special to The Financial Chronicle)

zeros

net im¬

SAN
gene

J. Marty is

now

with

Jamieson & Co.,
Inc., Russ Build¬

ing.

to the
Government la
Kenya Colony and Uganda

Head

Office:
End

London,

Bulletin

Request

Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock

Exchange

FRANCISCO, Calif.—Eu¬

BANK

INDIA, LIMITED
West

with

Now W;th H. L. Jamieson

NATIONAL
of

Bankers

associated

the

which represent non-withdrawals

(net), and do not

Mr. Nesbit for many

years was Assistant Sales

cent is

high because it counts

poor

Witherspoon & Company,
the Inc., 215 West Seventh Street.

approxi¬

per

the

prom 0.6 to 7.6%, the average be-

;ng

over

half, a reflection of
underwriting showing.

insurance

the

earmarking ranged

+oo

oth^r

Moseley & Co.t/135 South La

Salle Street.

showing,

poor

LINCOLN, Neb. — Hubert L.
along Harrison is now connected with
First of Iowa
corporations,
Corporation, Equi¬
are
taxed on only 15% of their table Building, De Moines.
dividend
receipts, the primarily
With Taiyo Securities
equity holding companies natu¬
rally did better in this respect
(Special to The Financial

H. R. Nesbit

earmarking

the

reserve

income

with

claims.

percentages withdrawn

por export and

sold

Such buying

were

mately 1.5%; and this

This involves

the seller.

drawals for export

loss

the

net gold with¬

But

shift of bank deposits or other cur¬
rency to

our

somewhat

naturally, it would

the 1956 first

January, 1922, to January, 1954,
^e should
have found that al¬
though there were potential for¬
eign claims against our gold stock

have shown continued poor action

With

premium

Federal

F. S.

1956

since July 1.

about one-tenth

it is with the history of the

every year, there were 21 of
32 years involved in which

Recommends Insurance

red,
98.6%

with

stand out on the
First, investment in¬

as,

both

earned

9.3%.

Pick should have concerned him¬
self.
Had
he taken the period,

was

This total for the
was

setback for this group

items

increased

with

The same general picture ap¬
plies to the conversion of foreign
potential claims against our gold
mto

Three

come

gold

our

was

this year.
half

first

of companies.

$5,000,000,

deemable, would have constituted
potential claims against this gold
But

lower prices of stocks and bonds,
primarily, during the first half of

poor

credit side.

money
and bank deposits
($243,208,000,000 as of June 26-30)
which, if the currency were re¬

stock to those claims

compared

formidable

CHICAGO, 111.—Harold R. Nes¬
bit

in securities got under way. This,
of course, is a reflection of the

showing for either pe¬ ago, but it is to be questioned
riod.
The
underwriting loss in whether general buying ought to
the half was above $127,000,000, a take
place yet.

gold

stock.

102.6%,

in the 1956 first half—a compara¬

would

approximately

performance since the bull market

6.1%, while the time

tively

adequate ratios of the
As of June 26-30, 1957, the
9.3%. For the years 19151932 the average of the yearly ra¬

ratio with

past.

was
higher
by 3.8 per¬

With F. S. Moseley

If 3%
gold stock (of $22,623,000,-

our

losses,
invest¬

This space continues to feel that

Harold R. Nesbit Now

1931, to 4.37 in July, 1932.

and
from

ments.
reversed
the
field-day
showing that has characterized its

when rates will be

business

age

actual exercise of claims that Mr.

ratio

the group, as a group, in .the

gains

income

the fire-casualty list is not likely
to counter the trend,
pricewise, in

including December, 1932,
from 1.44 in April and May,

ac¬

busi¬

the

and

from

these companies wrote about 6.9%

changed:

October 2,1957

Investment

are

expense

New York 10,N.Y.

arson

covered
by fthe
country's
companies. This data shows equities

centage points,

percentages

aside

that, comparing first six months,

1 Madison Avenue

time

them,

among

write

1956.

Monetary Policy

showing

Economists' National Committee

our

circulation

of the extent of the

underwriting

by some data issued
leading insurance analytic
service, Alfred M. Best Company.
They have used a group of 128 fireby

stock

WALTER E. SPAHR

heavier.

brought out

ness

■>

much

scope

poorer

ests, is a temporary profit for
themselves at the expense of our
welfare.

the roads and repair

cars on
are

The

All

that

for

plus $176 million;
for this year $37 millions.
The
ratios that are being piled
up in
motor vehicle lines, for there are year-end figure is likely to make

monetary standard and the general

behavior in

that

compare

year

bills

was

commitments

the

our

nation

against

today.

counted

greater proportion
of the burnings than it does
today
replacement of destroyed property.
when,
relatively, industry and
But, while they must face inflat¬
commerce
are
prosperous
and
ing costs, it is also true that there
there is no point in resorting to
are more fires.
qrson to "baiUdut" of inventories.

during the decade January, 1923,
Total

con¬

cedure is

governments and
banking institutions
gold stock. His error

percentage

(Billions)

For

was

another devaluation of

point of view:

Federal

dollar balances.

inflating prices that

front the insurance companies

erable number of people in this
country and abroad who would, if
they could, sell the people of this

and

simply 'up¬
1929 Crash Experience
valued' yellow metal, this still will
For example, during the decade
not be enough.
"A look at the figures will prove preceding 1.933 the common top
my

term

is due to

banks

international

procedure that offsets the potential

touchy problem of gold coinage, it
cannot be stressed often
enough
that we simply have not
enough
gold to make such a step [as coin¬
age of gold?] possible. We really

Insurance Stocks

That 1957 will turn out to have
been
an
extremely bad under¬

And the facts are that our gold lire losses are but one
stock, in the light of our experi¬ insurance companies' / headaches,
ence for the period
1915-1932, is for automobile lines contribute
more than adequate to support a
heavily to the companies' troubles.
redeemable currency at the statu¬ Here, too, both inflation of prices
tory rate of $35 per fine ounce. and the number of automobile
Nevertheless, there are a consid¬ accidents contribute to the loss

licity. Said he,
page 41: "But,

Walter E. dp*u<

gold exports, ad¬
for gold under earmark,
averaged 15.7% of foreign shortyears,

(

siderable pub¬

con¬

gold stock. For the

involved

analysis lay in treating poten¬
tial claims as though they would
actually be exercised.. This pro¬

receive

our

15.7%

tral

valued
The

de¬

low

whop he failed to respect stock; the 5.7% involved 1.5% of
our gold stock. /-•
givep pbove. |
-

tions

5.8% of

the ratios
Mr.

—

gold

our

that

sizeable increase in fire losses

fore Mr. Pick was confused and in
error

By ARTHUR B. WALLACE

This Week

in¬

payout. This probably should be
percentage of withdrawal may be
underscored, as the tendency of
against a relatively high volume- writing year is borne out by the insurance
managements
is
to
of foreign claims while a high
material that continues to come "nurse" income
per¬
from investments
centage may be against a rela¬ along. Unless there is an improv¬ at a time when
they are having
tively small foreign claim., For ing trend between now and the to disburse
heavily to pay out on
example, during the 32 years 1922- year-end it is probably going to
property losses.
1953, there were 21 years in which be worse in this regard than 1956,
Pessimism continues to be the
there were no withdrawals.
For which registered very unsatisfac¬
note among many insurance exec¬
the other 11 years, the percentages
tory underwriting results, to say
utives, for the first half under¬
of net exports, adjusted for
gold the least.
writing showing was the indus¬
held under earmark, ranged from
First we have had, with only
try's worst since 1932. That was
3.4 to 59.0. But the latter (in
1933) modest interruptions, a continua¬
the low of the depression years,
was against the smallest of all for¬
tion of the upward trend in fire
and
the so-called moral hazard
eign claims for the years 1922- losses.
Apologists rationalize that was a far
greater factor than it is
1953
($392,000,000); it amounted the

the average

in his conten¬

dollar

our

reason

years,

analysis
really own, without mort¬
gage, about $10 to $13 billion of
gold." Here he was referring to
short-term claims of foreign cen¬

that

the

non-gold money and
deposits that the claims
against gold are exercised. There¬
bank

and

currency

should

for

ownership of other
and bank deposits. And it justed

money
is through

has

balances

(Chronicle, Sept. 26) forecasting higher

Spahr states it is no more valid to consider all potential
claims against insurance companies as though they would—

Bank and Insurance Stocks

ear¬

greatly limited value apart from

Answering fallacies said to be contained in Dr. Pick's article

under

percentages of foreign

short-term
the

Thursday, October 10, 1957

Gold Claims

Foreign

...

120

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
23-/7

ro.l-

1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
V

Bishopsgato,

(London) Branch!
13, St. James's Square, S. W. 1,
Branches in India,
Pakistan, Ceylon,
Burma, Aden , Kenya,
Tanganyika,
Uganda, Zanzibar, and Sotnallland Protectorate.
Authorized Capital
£4,562,500

Paid-Up Capital
Reserve

Fund

£2.851,562
£3,104,887

The Bank conducts
every description of
banking aid exchange

business.

Trusteeships
also

and

Executorships

undertaken

Number 5680

Volume 186

the

subject of

Charles

Education

before

Mr.

Ameri¬

ton

Cheever

Vice-President

enue,

Corporation.

Wednes¬

Graduate

School

1951.

has

(■

Southeast.

maintains

1115

Nathan Habib is

12th

principal of the firm.

and at

der Donald E.

CLEVELAND, Ohio

Mutual

Emile A.

—

staff of First Cleveland Corpora¬

National

Building,

Banking
of

tion,

west

the

City

now

with

principal.

■'

COLUMBUS,

The

Engler

(Special to The Financial Chronicle)

en¬

reached at P. O. Box

Reese

Samuel
East

167.;

Exchange.

Livingston,

Hanna Build-

Joins Samuel &

Investment

Williams

—

securities business.

Huguley is

firm may be

Mid¬

the

members

Stock

Funds

gage

Rex

Sixth

East

Okla.

Services has been formed to

Legros, Jr. has been added to the

head

Pierce, Fenner &

CLEVELAND, Ohio—Robert T.
Shuber

CITY.

with.

connected

(Special to The Financial Chronicle)

214

Lloyd.

OKLAHOMA

Ohio—Henry

With Livingston,

Mutual Funds & Inv. Opens ing.

(Special to The Financial Chronicle)

First Bos¬

A graduate

now

Beane, Dixie Terminal Building.

Northwest
Street, Pendleton, Ore., un¬

Moore,

Lynch

branch

Lewiston*

Burrell,

Idaho under the direction of Carl

Av¬

First Cleveland Adds
•

Assistant

Pennsylvania

firm

The

office

Williams & Co., Inc.,

at the

p.m.

the

been

1377

Merrill Lynch,

ing.

securities business from of¬
at

Altenau

the Bos¬

Harvard in 1934 and the Rutgers

fices

Club

another popu- r

now

Ohio

Roy

—

connected

Engler

Broad Street.

Company,
' -

with

being

just

mailed

The 25-

them.

A\ h

IN EARNINGS

report

page

entitled

WINN-DIXIE STORES NOW

"Banking

Legislation
i

Committee

lar-type legis¬
lative report

effect

Cheever

day, Oct. 16, at 12:15
Union Oyster House.

Bankers

t h

o n

85 th

AMONG ALL RETAIL FOOD STORES

7"1 IN SALES

Ses-

First

the

its

talk to be given

ton Investment

is reported to all members

the

can

the
and

luncheon meeting of th<* c^les and

eration of the next Session of Con¬

Market

CINCINNATI,

has been formed

George C. La Dow is a prin¬
cipal.

Opens

(Special to The Financial Chronicle)

with offices in the Paulsen Build¬

WASHINGTON, D. C. —Fore¬
most Securities Corp. is engaging

securities and securities prices, is

Banking legislation entertained,

Association

tual Funds, Inc.

About,"
Government

Joins Merrill

Form Allied Mutual Funds
SPOKANE, Wash.—Allied Mu¬

Foremost Sees.

Ought to Know

analysis

Bond

enacted, and left over for consid¬
gress

Department of the
Corporation for the

Boston

past ten years.

BOSTON, Mass.—"$275,000,000,000

Congress is
briefed in
prepared by
committee headed by ABA VicePresident Lee P. Miller, President
of Citizens Fidelity Bank & Trust
Company, Louisville.
85th
study

First

Boston Inv. Club

Legislation

Banking legislation enacted and
pending

Government

Gheever to Address

ABA Issues Report
On Bank

(1577)

The Commercial and Financial Chronicle

:•

Co nr.';

gross"

was

prepared by
the ABA Committee

Federal

Washington

the

and

Legislation
office.

described the chief

booklet

The

of 53 bills introduced
in Congress this year. It gives the
status of all, reporting which were
enacted into law and what prog¬
provisions

ress

made on others.

was

The

ments

ABA ex¬

the

position

pressed

THE FASTEST BROWING

at hearings or in state¬
filed with committees of

reported.

Congress also is

Lee P. Miller of

Louisville, Ken¬

tucky, who served as Chairman of *
the Committee on Federal Legis¬

FOOD CHAIN

as ABA
month, states

last

Vice-President,
in

election

his

until

lation
.

Foreword:

the

"Of

described

measures

IN THE SOUTH

relatively few have
completed the legislative process.

this

report,

The

remainder retain their status

of the date of

adjournment and

require additional action

will

the

MIES-

in January,

over

passed the half-billion mark

SALES

WINN-DIXIE

Congress when it reconvenes

—

up a

big 21.89%

last year.

1958."
EARNINGS

WINN-DIXIE

Miller, President of the
Citizens Fidelity Bank and Trust
Mr.

1957,

of Louisville, calls at¬
pending
"Financial
Institutions
Act
of
1957" contains a number of provi¬
sions which normally might be the

rose to

$1.71

per

after taxes for the fiscal year ended June

29,

Common Share—up 24< over last year.

Company

WINN-DIXIE

tention to the fact that the

copies

writing

Office

ington

WINN-DIXIE GROWTH
open

730

new

earnings—are anticipated for

COMPARATIVE RESULTS AT A

FISCAL

State

SALES

Street.

George M. Jasper, Mary C. Cheves,

NET

McDowell.

the

staff

been

added

Peirsol

was

previously

with

Richard

5,217,804
$

.72

$ 44,321,259

Common

$ 38,606,228

$ 40,469,059

NET

Fay & Co.

WORKING CAPITAL

Ratio Current Assets to

$3.13

Current Debt

Report

ovailable

request

4,404,948

.84

EQUITY

STOCKHOLDERS'

Co.,

9645 Santa Monica Boulevard.

9,133,601*
$1.47*

$1.71

PAID

Copy of complete
Annual

10,625,983

(Present annual rate 96c)

BEVERliY HILLS, Calif.—Rich¬
Marott has

Per Common Shpre

(Special to ThitFinancial Chronicle)

$2.84*

$3.48

EARNINGS AFTER TAXES

DIVIDENDS

17,618,601 *

$ 21,681,983

Per Common Share

Joins T. R. Peirsol

INCOME TAX....

Per Common Share

Harlow,

17.49%

21.89%

BEFORE

EARNINGS

N. Fatzinger, Holden C.
Jr. and Dale T. Harris.
All were previously with Straus,

Henry

ard

6/30/56
$421,327,312

% Increase

Associated with the new office are

Blosser &

YEAR

$513,549,316

Mass. —Craig¬
95

38,788,751
.

WINN-DIXIE

STORES, INC.
AND

$3.53

SUBSIDIARIES

Operators of Retail Food

UNITS

Joins G. C. Lane Staff

IN OPERATION

Retail Stores

HAVEN,

'IT!1

".MIM! '

♦These

figures

do'not

include

recurring nature arising

Wholesale Units

Conn. —Delore
'Nobert 'has joined
the staff of
r George
C. Lane & Co.r Inc., 70
.College Street.^- i ' ■'-1

412

462

(Special to The Financial Chronicle)

NEW

GLANCE

6/29/57

myle, Pinney & Co. has opened a
office

15th

Craigmyle, Pinney Branch
branch

1st. Sales of between

the coming year.

Street, N. W., Washington 5, D. C.

SPRINGFIELD,

continues with plans

super-markets—23 of them

$560 and $570 million—with comparable

American

Association,

Bankers

before January

"Banking

to the Wash¬

the

that cash dividends have been paid.

the 24th consecutive year

Legislation in the First Session of
the 85th Congress" may he ob¬
tained

monthly at the rate

share in the previous year. The rate per

month for fiscal 1958 has been increased to 8<—the I4th
in which the dividend rate has been increased and

per

consecutive year

the ABA last April.

Additional

OF $5,217,804 were paid

share against 6$

share per

subject of separate bills and that
major provisions of the "Financial
Institutions Act" as passed by the
Senate are summarized in a book¬
let issued by

DIVIDENDS

of 7i per

•-*

special credit of $1,287,074, or

from involuntary conversion

21c per Share, representing profit of a non¬

of property destroyed by fire.

Florida, Georgia, Alabama,
South

Stores in

Mississippi, Louisiana,

Carolina, North Carolina,

Kentucky and Indiana

GENERAL OFFICES: JACKSONVILLE,

FLORIDA

)!•

J'.,

The Commercial and Financial Chronicle.

(1578)'

Fabulous Over-the-Counter Market: Where
Continued

Trading Starts and Never Ceases
It is at this division that the

such thing as a "listed" life
stock. Yet this class of secu¬
rities has turned in a more remarkable capital
gain performance, in the past 10 years, than
almost any other major industrial classification.
And there's an exciting newcomer in the offing
here
Occidental Life which is to be spun off
There is

Counter.

from first page

the

insurance company

before

listing was ever arranged. For, as a matter
record, almost every issue dealt in on any stock
exchange first developed its trading market, and
acquired hundreds of stockholders, in the Overthe-Counter Market.
And even today in respect
of

securities

operated

from Transamerica

blocks is

illustrious

leading corporations arrange¬
sale and distribution of large
customarily handled in that vast market.

does

sidering only listed securities would deny access
to some of the highest quality and most renowned
investments in the world. Examine for example,

Considerable

regular
issues

tions,

Franklin,
tinental

General,
Virginia Life?

Fabulous Life

America,

that

Then

all

involve

would

tabulation

what about

community
made

A life in¬

just

bank

are

fortunes

for

few years.

in the first

ket, of

There

are

on this
subject might be appro¬
Part of the grief sustained by those who
entered the market in promotional securities has
been caused by too much
cupidity, just a little

priate.

stupidity, and

the

All have

unable to buy either

any

stock exchange.

quite lamentable failure to get the
up") about the sporting

many

areas

have

listed or in the Over-the-Counter Market
is, at
best, hazardous, and those who go in for it should
possess, the right temperament to stand loss as
well

cisions

commer¬

capital stock. But
single share
The
a

entire

100%

or a

and
non-

accept gain, and. should base their de¬

hunches

information

correct

pressure

verse

early stage corporate ventures.

■

Utility Securities

Railroad Securities
'Canadian Bonds

The

EIRST BOSTON
CORPORATION
Pittsburgh

Cleveland

securities,

many

of them

holding considerable promise of capital gain and
expanding income, awaiting
consideration

the

your

inspection and

Over-the-Counter

Market.

industry by industry, issues picked at random

For

Industrial Securities

"tips,"

impossible to list here all the di¬

assortment

nitude and attraction of

Public

trading markets

not

Electronics, Oils, Steel Stocks
It would be

promotional,

—

selling.

one.

Bank and Insurance Stocks

facts (instead of the "build

Perhaps the most confusing area of the "World's
Biggest Stock Market" is in the shares of new,

JFe maintain

A further word

But

Over

Boston

and

about 13,000

panoramic market for bank stocks is
listed

in your own

original subscribers in

Over-the-Counter Securities

Philadelphia

now!

In the Over-the-Counter Mar¬

N*w York

some

How did they get their shares

place?

course.

you are

block

men

stockholders,

their

cial banks in the U. S.

become a
in Travelers,
Lincoln, Con¬

in selected issues

enterprise

they directed their hard earned
money..,The purchase of penny stocks (whether

operating in rapidly growing

you

traded

quota¬

stocks^ Some of the

important and influential

banks

Company Stocks

are

Over-the-Counter

our

venture to which

The capital shares of all of these renowned life
companies, some of the most elite financial insti¬
tutions

the

number

The Bank Stocks

Then what about

Connecticut

advocacy

30,000 issues, many of which are quite closely
held and, hence, infrequently traded.

company will acquire a great proportion
of its corporate bond holdings from such
original
distribution and usually before
trading on an ex¬

increasing

place, in

however, for

financing the fledgling
corporation, and for the legitimate purchase and
sale of the securities
among those interested.
The obvious place is, of course,
Over-the-Counter,;
and many of today's "greats" were-once
lowly
early phase speculations. Louisiana Land sold at
50c and Amerada at $2. You
ought to see them

now a

since

surance

Life?

our

Market is found in

and
the

for

daily feature of major metropolitan
Hundreds of the more active issues
are
presented with the current "bid and asked"
prices of each, for the benefit of those who like
to follow share prices,
day by day. Actually, it
would be virtually impossible for any
newspaper
to cover regularly the entire "Counter" market

And, of course, the original syndicate under¬
writing and distribution of new issues of both
corporation bonds and stocks is essentially an

Aetna

There does have to be

newspapers.

most

Today's "Greats" Once Early Speculations

documentation

included

Over-the-Counter Market.

shareholder

fraud, and have

mar¬

dealings skirt the edges of
place among honorable men.»

Over-the-Counter

the

in Metropolitan Papers

appearance

dubious merit or future, or have
quite unconscionably wide "spreads"

between the bid and the asked sides of the
ket. Of course, such

of the Over-the-Counter

drainage, public housing, etc.—all bought, sold or
quoted in that same'market, and nowhere else.
The same situation applies to toll bonds; and to
Canadian Government and Provincial obligations,
bonds of absolutely top quality all acquired in the

How do

of
on

economy,

magnificent investment portfolio of a great
publicly owned life insurance company such as,
for example, Aetna Life Insurance Co. Its secu¬
rity holdings are preponderantly bonds. But what
kind, and where acquired? First, governments,
millions of them; all bought in the Over-theCounter Market. Then municipals—starting with
the direct obligations of our largest cities and
states and including bonds issued by political
subdivisions for special purposes—schools, roads,

occurs.

"'.

Quotations

the

change, (if applied for)
its own capital stock?

brethren

Market.

Further, blindly to adhere to a policy of con¬

Over-the-Counter Market transaction.

Corp. When this distribution
Occidental Life will be joining its

occur,

major criticism of

Over-the-Counter Market

trading has been
leveled, largely because a few unscrupulous or
greedy firms have on occasion either sponsored

—

issues of many
ment for purchase,
to

Thursday, October 10, 1957

Chicago

San Francisco

will

give

you some

ideas about the quality, mag¬

equities here obtainable.

instance, in electronics there's Philips Lamp

Number 5680

Volume 186

Electronic Asso¬
Electronic
Specialty Co., a rapidly advancing West Coast
entei prise, and Epsco, Inc., whose 60,000 share
underwriting was an outstanding success recently.

Pyramid Electric,

Holland,

ciates,

leader in analogue!, controls,

Then what about Aztec Oil & Gas,

Like oils?

Petroleum, San Ja¬

Delhi Oil, Pubco

Canadian

broad geographic call on oil),

cinto (with a very

Texas National Petroleum and
"A."

All these

and Bartles^ or

;

Do you

ones

much

been

Zapata Off-Shore, which drill in

pastures successfully.

favor steels? There are some interesting
Lone Star Steel,

in the "Counter" market.

the motor trade, Kaiser,

Portsmouth and Jessop

can

become

Eli

market.

shareholders
Searle

and.

times

Lilly; "B"

very

financially on somebody or some com¬
pany; Time, Inc., for keeping up on your reading
(profitably); MacMillan Co.; and International
Textbook, if you want to study; W. Disney for
special entertainment; National Homes for pre¬
fab housing; Canadian Javelin, which has speared
its way into hundreds of millions of dollars worth
of assorted ores; and if you're a bug on helicop¬
ters, there's, Doman, Kaman, Gyrodine and Vertol, all waiting to spin for you. U. S. Envelope
can
keep you current on. correspondence; and
Ampex is an exciting leader in magnetic tape
recording. Fact is there is no industry, except
perhaps railroads (and there , are a number of
Over-the-Counter
not

offer

$1,000

at the

G. D.
a

and

which

10 to 173 YEARS
UVWHHVUnUWWUHHMHHUUWUUVUW
Cash Divs.
<

—own

one

way

years

secutive

We're

Over-the-Counter

Retail

Electric

AOtna

look

without

proud

of this

Market

Gas

common

and

Transmission

and,, in

Canada,

the

units of Trans Canada Pipe Lines

0.20

8V2

2.4

fO.98

291/2

3.3

Golf

Casualty & Surety C6'.r" /"
—

Market,

2.70

——

•<

1.60

26%

6.0

0.90

4.3

1.25

5.4

Agricultural Insurance Co.—
Diversified

2.00

2.4

Insurance

and

navigation
*

Railroad

Co.

carrier

Alabama

Dry

Dock

Building Co.

Ship
:

and repair

the

for

Details not

complete

to possible longer record,

etc.

t Adjusted for stock dividends, splits,

CHRISTIANA SECURITIES CO.
Preferred

Inquiries invited in all Unlisted Issues

Trading Department, L. A. GIBBS, Manager

MEEDS

BISSELL &
NEW YORK

STOCK EXCHANGE

AMERICAN

STOCK

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.
Bell

DIRECT

SCIIIRMER, ATHERTON & CO.
50 Congress

St., Boston, Mass.

WHITE

WOODCOCK, HESS, MOYER &
123 S. Broad St.,

44 WHITNEY AVE.

WILMINGTON, DEL.

NEW HAVEN, CONN.

SCIIIRMER, ATHERTON &

CO., INC.

49 Pearl

Philadelphia, Pa.

Texas

650 South Spring St., Los

PHILADELPHIA NAT L BANK

PHILADELPHIA, PA.

CO.

St., Hartford, Conn.

MITCIIUM, JONES & TEMPLETON

INCORPORATED

San Jacinto Bldg., Houston,

DU PONT BUILDING

Teletype NY 1-1248-49

CONNECTIONS TO

KRAMER & COMPANY

CO.

Mississippi Valley Bldg., St. Louis, Mo.

WIRE

Continued

Specialists in

Telephone BArclay 7-3500

1.7

200

3.40

♦

120

3.9

OVER-THE-COUNTER SECURITIES

MEMBERS:

66%

accident, health

group,

BANK & INSURANCE STOCKS

LAIRD,

2.60

(Hartford)-: 84

Insurance

(Hartford)

not conversant with how

Common

1.9

139

and marine

Aetna Life Insurance Co.

the difference between the

are

6.5

*20

Co.—

rubber products and

Aetna Insurance

benefit of those who

Akron, Canton & Youngstown

Following the tables appearing hereunder, we
Over-the-Counter

0.30

;

insurance

Attrac¬

the Over-the-Counter Market functions.

Limited.

(Hartford)

Ohio

and

5.3

Corp
radio,

Casualty, surety, fire

Over-the-Counter Trading

listed

1957

1.75

balls

Shipbuilding
nessee

equipment and accessories

June 30.

1957

Paymts. to

28,

Abrasives

Molded

Difference Between Listed and

discourse

tion

June

sporting goods

Abrasive & Metal Products—

Communication

30,

Based

Aircraft Radio Corp

present

June

Quota-

Fitch..

Acushnet Process

tions..

choose
eminent equities

Approx.

12 Mos. to

Divs. Paid

Abercrombie

to beat the business cycle

that!

Extras for

Years Cash

Life,

,'l\to. Con-

•

•,

% Yield

Including

•

Transformers,

have assembled below. Imagine

paying dividends for 173
That's

tabulation

Pipe Line and Ten¬

miss.

long dividend records for you to
Gas

for

Diversified

telephone companies

from; and in pipelines some very

long and imposing list of durable dividend

stock

PAYERS

DIVIDEND

Acme

documentation of all we've been

Consecutive Cash

saying about the most vital market, take

public utility field there are dozens of

Transcontinental

selection

meritorious

and

equities in the Over-the-Counter Market..

payers

inspection.

electric, gas and water and

OVER-THE-COUNTER

guaranteed rails), which does

broad

Finally,

of the

performer;

elegant Upjohn which sells above

roll

13,500

with

bright future;

spectacular

■—all these await your
In the

some

TABLE I

thirst; Marlin Rockewll, providing ball and
bearings; Wurlitzer for the rock and
artists; Dun & Bradstreet, if you want to

roller

Stocks, Too

shareholder in

companies in the world, but only in

finest drug
same

your

Uninterrupted Cash Dividend Payers.

Other Essential Industry

Then there-are highly specialized industrial
companies, Anheuser Busch and Pabst to slake

few.

Steel to mention just a

You

oil trade,

expanding Michigan steel maker for

McLouth,

with

-y-

big Texas supplier of drill pipe to the

the

too

excitement

drilling. .Look at Falcon, Brewster

offshore

the shrimp

Union Oil & Gas

found in the Over-the-Counter

are

There's

Market.

(137ft)

check up

Over-the-Counter.

All these,

Chronicle

The Commercial and Financial

...

BLDG.

Angeles, Calif.

WALDMANNSTRASSE

ZURICH, SWITZERLAND

page

The Commercial and Financial Chronicle

(15S0) 1

TIIE

NATIONAL

FIRST

CITY

NEW YORK

BANK

CONSOLIDATIONS

Total

Cash

BRANCHES

OFFICERS. ETC.

Bankers

and

REVISED

banks__

Loans

discts.

Undiv.

Where

1,717,710,197 1,843,930,533

Trailing Starts and Never Ceases

se¬

Cash Divs.

holdgs. 1,121.826,347 1,028,143,203

curity

CAPITALIZATIONS

due

Govt,

page

Fabulous Over-The-Counter Market:

7,434,145,970

/ 0,443.987,827 6,614.182,518

and

from

NEW
NEW

7,497,017.001

resources.

Deposits

from

June 30/57

News About Banks

Continued

Sept. 30/57

No. Con-

76,009,2ol

Extras for

secutive

78,531,851

12 Mos. to

Years Cash
MANUFACTURERS

shareholders

the Brussels office.

"Chemical

Exchange Bank, New York 1,022,706 shares or 96.2% were sub¬
scribed
of

for

GUARANTY

Total

The

Cash

new

were

basis

offered

shareholders

$45.50
of

......

and

from
U.

pne-for-five

NEW

YORK

Loans

582,591,507

discts.

derwriters and the balance of 23,195 shares have been taken

William

by
the underwriting
group headed by
Kuhn, Loeb & Co.; The First Bos¬

Corporation; Hemphill, Noyes
Co., and W. C. Langley & Co.
%

New

York,

appointment of James
as
Vice-President.

Toren

stitution

investment

department

BANK

FARMERS

NEW

ters
from

30,990,672

Govt,

rity

discounts

Undivided profits..

13,498,514

13,592,460

The

Guaranty
York

Bradley

Trust

other

Street.
for

The

NATIONAL!.

BANK

completion early

banks
U.

NEW

appointed Frank

Second

MANHATTAN

Deposits
Cash

and

from
U.

changes,

Herbert A.
appointed
Assistant
of the bank's London

resources-

profits—

1.004,879

1,572,902

BANK
NEW

AND

TRUST

.—

Loans

Govt,

curity
Loans

June 30/57
$

1,812,800,152 1,802,236,080

se¬

holdgs. 1,092,713,201

the

The

discts.

1,032,831,773
3,786,372,502 3,863,328,881

Undiv., profits

81,424.407

Fire

17,401,511

29,409,426

27,500,474

58,453,514

Executive

announced

position

District

the

bank

Chairman

Committee

Trust

until

his

He will

term

present

first

the

Yonkers, N. Y,

Continued

86,095,023

30%

6.0

1.50

3.3

3.25

70%

4.6

3.00

4.0

alarm

Assurance

allied lines

orders;

Diversified

6.3

1.725

34%

5.0

travelers'

checks

1.00

—

1.20

Casualty

5.2
/

Fletcher

National

Bank & Trust Co.,

Indian¬

apolis

American

7.1

felt

insurance

American

30%

Felt Co
of

1.90

insurance

Forging & Socket-

Manufactures

1.40

0.495

36%

3.8

6.0*,,

„

6.2

automotive

hardware

American Furniture

0.20

.0.60

Large furniture manufacturer
an

American
Fire

Vice-

President of the Central National
Bank

1.80

*14

and

American Fidelity &

director of

In 1929, Mr. Couzens became

and

Co.

Equitable
and

Money

Oct.

expires in December, 1958.
organizer

4.1

folding

Dredgihg Co

American express

Company,

Dec. 31.
as

39%

Co. of New York

plans to retire from

serve

1.60

heating

Telegraph

supervisory

American

New York,
on

2.7

insurance

Arner.

59,890,008

❖

Couzens,

County

3.7

containers

Insurance

98,377,217

1.70

Ohio and Mississippi

Manufacturer

BANK,

due

banks

June 30/57

Fire

discounts

fO.99

*32

miscellaneous

•

American Druggists Fire

secu-

holdings..

curity

16
23

Dredging operations

17,899,107

Govt,

Corp..

Filter

Box Board Co

American

YORK

due from

and

banks

5.6:/,
2.7 <"■

systems

99,294,233

——

f0.99 ./

boxes, corrugated and fibre

Electrical

Deposits

44%
37

,•

Co.

110,841,654 109,412,407

resources...

2.50

electric motors

sand

American

75,635,381

3.6

Operates

shipping
35,600,470

STATE

4.1

1.00

*20

Air

American

36,568,594
81,490,339
%

23%
'

*15

Aggregates

and

33,730,673

Sept. 30/57
Total

ventilating equipment

paper

0.96
*

American Barge Line Co

secu¬

COMPANY

that

7,620,914,548 ,7,524,331,448
6,706,508,451 0,093,721,587

Rivers

discounts

continue" tto

$
Total

8.3

supplies
and

20,584,224

COMMERCIAL

YORK

Sept. 30/57

Assistant

Vice-Presi¬

4.4

General Ilisur. Co.

and

casualty

1.6

insurance

American Hair &

Felt

1.40

8.8

1.20

23%

5.2

1.35

39%

3.4

fO.78

13%

5.7

fl-36

26%

5.2

0.30

9.2

2.00

1.20

Miscellaneous hair & felt products
was

page

American Hoist &
Hoists,

cranes,

American

Derrick—
equipment

cargo

Hospital Supply—

Large variety of hospital supplies

Insulator

American
Custom

moulders

Corp

plastic

materials

Active

American

Trading

Insur.

Diversified

American

Northwest Production Corp.

American-Marietta Company

Pioneer Natural Gas

Company

Food Fair

Corporation

Southern Nevada Power

Company

Suntide

Company

powders,

Company

Refining Company

Texas Gas Transmission

cement

Nevada Natural Gas
Pipe Line

and

Company

Nitro-Chemicals, Ltd.

4.4

56%
•

2.1
r

•

Company
t|

*27

12.00

11%

1.6

insurance

National

Bank

Denver

Company

0.18

Diversified

American

160

7.5

2.5

Amer, Natl. Bank & Trust Co.

(Chattanooga)

Corporation

2.00

(Chic.)—

f5.73

335

1.7

Corp., Class B—

1.00

7.7

f0.98

26%

3.7

1.80

7.2

1.30

28%

4.5

3.40

48%

7.0

+0.59

8.1

1.15

13%

8.5

10.00

0.90

19%

4.7

1.60

24%

6.6

Amer. Natl. Bk. Tr.
Amer. Piano

American

Western Natural Gas

products,
materials

building

Westcoast Transmission

Supply Company

corn

household

Transcontinental Gas Pipe Line Corp.
Volunteer Natural Gas Company

Products—

various

American Motorists Insurance

Texas Eastern Transmission
Corporation

International Refineries, Inc.

Northwest

ter¬

Paints, chemicals, resins, metal

Company

Tennessee Gas Transmission

LeCuno Oil Corporation

public

products

American-Marietta

Suburban Propane Gas Corporation

C. G. Glasseock-Tidelands Oil

Mountain Fuel

Company

Southern Union Gas

Properties, Ine.

The Gas Service

Manufactures

Republic Natural Gas Company

Deilii-Taylor Oil Corporation
Federal Glass

American Maize

Oklahoma-Mississippi River Products Line, Inc.

Arizona Public Service Company

Colorado Oil and Gas

lockers

Class B—

minals

Supply Corp.

Colorado Interstate Gas

(Newark)—

insurance

Locker,

Maintains

American Hospital

Manufacturing
own

Company Limited

retail

Boilers,

Company

and

pianos,

outlets

Pipe & Construc'n

tanks, pipelines

American Pulley
Power

tr.

transmission

and

other

equipment

Eastman Dillon, Union Securities

American Re-Insurance

Co.

Diversified

American

threaded
..

HARTFORD

•

CHICAGO

•

CLEVELAND

SAN MARINO

•

LOS ANGELES

READING

LAS VEGAS

•

EASTON

BALTIMORE

•

BOSTON

NEW HAVEN

PITTSBURGH

PATERSON

SOUTHERN PINES

HOUSTON
•;

forged

•

TORONTO

Spring

Holly,

•

SAN DIEGO

and wire

steel

American

CARLISLE

ITHACA

parts

and stamping

Steamship Co.—

435

2.3

Freighters on Great Lakes

Surety

Diversified

RICHMOND

forms

American Stamping Co
Pressed

•

Correspondents in
DALLAS

cold

Inc

American
ST. LOUIS

fasteners

American

STREET, NEW YORK 5, N. Y.

Springs

PHILADELPHIA

Co.__—

'
..

BROAD

insurance

Screw

Manufactuer

MEMBERS NEW YORK STOCK EXCHANGE

'
:

Manufacturer paperboard,

—..

Govt,

148,580,579

and

from

rity holdings.
Loans

Cash

Medical

Gravel

128,404,070 132,450,763

-4_—._

White Plains,

CHASE

1.00

Cement

(A. S.) Co

American

143.096,009

resources

Gerald

structure

7.5

financing

(Louis)

American

COMPANY, NEW YORK

Cash and due

year.

THE

was

Manager

Portland

Finance

Filters

Deposits

former

a
as

20,342,Sol

933,019,230

111

to Vice-Presidents from

Smeal,
Treasurer,

40th

dent and Charles E. Blackford
3rd,
Assistant Treasurer.

Bush

basement of the office build¬

is scheduled

Donald

Vice-Presidents.

28,206,407

Company

promoted

and

The bank also

228,273,985
973,103,309

The bank

ing, which will be known

3.4

2.00

cement

Generators and

272,000,913

discts.

STERLING

Total

has

Green

Stoddard
Second

and

4,643,021

West

New

holdgs.

Sept. 30/57 June 30/57

the first three floors

occupy

53%

—

Installment

A His

Aloo

when it

office

0.45

Class A-—-

Portland

526,514,733

profits..

corner

air-conditioned

—

Co.,

se¬

TRUST

70,954,477

487,499,703

❖

headquar¬

same

1909 until last
year,

34-story

will
70,713,559
2,425,685

<fe

the

building being erected.

25,484,540

secu¬

holdings

Loans

curity

Undivided

demolished to make way for

was

due from

banks
U.

143,394,407 139,518,025
102,054,992
98,788,807

Deposits
Cash and

Govt,

Loans

Street.

stood

YORK

June 30/57

1,815,010,696 1,840,007,347
1,591,691,024 1,025,133,029

sis

CO.

NEW

BANK,

YORK

S
resources.—.

Undiv.

its

for

Inc.

61,487,602

due

banks—

THE

plans

Union Dime's former
TRUST

elected

unveiled

Fortieth

the

Sept. 30/57 June 30/57
Total

been

—_

and

from

corner

pension trust division.
CITY

has

resources.

Cash

main office at the northwest
of Avenue of Americas and

new

Mr. Toren is associated with the

HANOVER

Deposits

by the Union Dime Savings Bank,
New York, as the
century-old in¬

the

announces

Total

customer service is the focal
point
of design was disclosed on Oct. 6

City Bank Farmers Trust Com¬
pany,

York,

fl.83

carrier

Allied

/An unusual bank plan in which

'03,794,424

92,080,991

C. MacMillen Jr. Vice-

ton

LocaJ

Sept. 30/57

Chairman of Colonial Trust Co. of

1957

nylon hosiery

A lien town
TIIE

President, and Arthur S. Kleeman, formerly both Chairman and
President, continues as Chairman.

94,862,546

1957

Modern business course and service

509,304,841

profits..

and

Alexander Hamilton Institute

1,592,262,215 1,590,073,426

Undiv.

Paymts. to
June 30,

June 28,

1957

Albany & Vermont RR. Co...

profits

tion

30,

755,488,292
r

se¬

Sept. 18, with the rights expiring
Oct. 7.
Of the remaining 40,059
shares, 16,S®£ shares have been
purchased by officers and em¬
ployees of the bank from the un¬

New

<fc

Undiv.

812,118,258

Antonio)

061,210,133
holdgs.
048,701.549
discts. 1,210,308,582 1,1JM),485,926

680,810,593

582,893,097

Silk

banks—

Loans

(San

Alba Hosiery Mills, Inc

due

Govt,

curity

2,446,072,510 2,457,059,893

holdgs.

due

Govt,

curity

record

2,955,822,515

banks—

and

Based

Alamo National Bank

2,770,655,344 2,602,879,735

from

June 30/57

2,990,019,471

resources.

Deposits

Helm announces.

CO.

Sept. 30/57

through the exercise
Chairman Harold H.

rights,

TRUST

30/57

3,097,004,393 2,971,010,474

resources.

Cash

Divs. Paid

Quota-

*
June

$ '

Total

Deposits

June

YORK

Sept. 30/57

Assistant Secretary of

named

was

Corn

COMPANY

TRUST

NEW

office and Leonard R. S. Williams

Approx.
% Yield

Including

3,884,506,823 3,379,892,120

profits
#

Of the 1,062,765 shares of addi¬
tional
capital stock offered to

Thursday^ October 10, 1957

...

insurance

American Thermos
NORFOLK

Products

Co.

SHAMOKIN

Vacuum
*

Details

—

ware

not

manufacturer

complete

t Adjusted for stock

to possible longer record,

dividends, splits, etc.

Volume 186

Number 5680

The Commercial and Financial Chronicle

...

(1581)
Cash Divs.

Fabulous Over-the-counter Market:

Approx.

Including
No. Con¬

;

Extras for

secutive

Where Trading Starts and Never Ceases
Cash Divs.

secutive

Quota-

12 Mos. to

June

Divs. Paid

tion

June

30,

1957

28,

Based

Atlantic City Sewerage Co.—

Sewer

Paymts. to
June 30,

1957

American

(Charlotte, N.C.)

55 -•

Ice,

(San Francisco)

1.60

—

f 1.18

Sewer pipe,

Ampco Metal, Inc

15,.

Copper-base
products

alloys

4.bronze)-

lor

parts

electronics

aircraft

industries

Casualty Co.

(St.

other

1.13

18%

6.0

Auto

Banking Corp.—

financing

personal

B/G Foods,

1914

6.3
-

0.90

•

14%

29%

0.60

3.4

Bassett

Detroit real

1.20

7.5

Chemical

and'mechanical

Apco Mossberg Co
Tools and

Apex

fU3

42%

dept.

f 1.19

22%

5.3

12%

7.3

0.90

1.10

18%

Coast

1.50

4.00

0.40

11%
45

3.42

5.4

Bagley Building Corp.—

1.875

31%

6.0

■

14%

6.9

BancOhio Corp.

24%

-1.00

4.4

Bangor Hydro-Electric

Hording company—hanks

Service.

and

- -

and

1.09

f0.83

16%

Arkansas Western Gas

.0.725

19%

Bank

3.7

Natural gas public utility, produc¬
tion and transmission

Electric Co.
wiring

devices

and

t2.60

con-

463/4

5.6

Bank

;

Cordials

Office

0.30

*12

63/4

4.4

33%

Associated

1.80

America

(Detroit, Mich.)
(The) of New York—

tional

the

Spring Corp

2.40

6.7

Bank of

Southwest

Atlanta Gas Light.

Virginia (The)

.....

Operating public, utility

f0.89

5.3

3.00

4.2

Bankers Commercial Corp.—

Mortgage

Georgia, carrier

: 20%

•

to possible longer record,

fl.225

t Adjusted for- stock dividends, splits*, etc.

SPEED

6.3

0.65

3.4

1.10

21%

5.1

Starting

t4.75

158

3.0

172

13.00

296

4.4

fl.76

Designer,

Operates

1.00

2oy8

3.3

& Mfg.__

0.30

2.50

4.5'

0.85

12%

6.9

0.50

11%

4.3

2.50

5.8

2.00

5.6

erector,

Stock Yards Co.

livestock

terminal

mkt.

36
textile

f2.00

8.1

corfipany

affiliate

0.50

Glore, Forgan & Co.
J. N. Russell & Co.
Dallas Union Securities

Detroit

Grand Rapids

Houston

King and Company
Cohurn and Middlebrook Inc.

—

Philadelphia
Pittsburgh

Fusz-Schmelzle & Co.

San Francisco

Spartanburg

Troster, Singer & Co.

& Henderson

*—H. A. Riecke & Co. Inc.

--Arthurs, Lestrange & Co.

St. Louis

Telephone HAnover 2-2400

Underwood, Neuhans & Co.

Angeles—________Harbison

Security Dealers Association
NEW YORK 6,

Company

Baker, Simonds & Co.

Hartford—

74 TRINITY PLACE

5.0

Details

NATIONWIDE COVERAGE

Dallas

Members: New York

Company

not complete as to
possible longer record,
t Adjusted for stock dividends,
splits, etc.

Cleveland

Securities

'
«

Continued

Los

5.8

■

Private Wires to:

Over the Counter

34%

plastic bags

Beneficial Finance

Beneficial Corp.

3.4

1.30
■

and

Manufacturer of paper,
and

9.7

wholesaler

Bemis Bro. Bag Co...

5.0

steel

Belt RR. &

53%

Chicago

5.4

1.55

and valves

fabricator

structural

Specialists

Page 51.

Belmont Iron Works!

to possible longer record,

DEPENDABILITY

1.25

t Adjusted for stock dividends, splits, etc.

0.325

furniture

Pumps, tanks

4.0

Holding

7.8

Wholesaler: Cosmetic and toilet
preparations

financing

Details not complete

19%

holding corporation

Hardware

4.3

Installment financing

•Details not complete

1.50

Bell & Gossett Co.—

•

2.3

Holding company—small loans

Mortgage
Guaranty Co. of America,

Atlanta & West Point RR. Go.

Bond

1.55

?20

5.1

Na- '

Association, Houston

Bankers

69%

Laboratories, Inc

Belknap Hardware
18

Precision springs

35 y8

of the Commonwealth

Bank of

21—r 2.00

Bank

6.0

and liqueurs

furniture

1.60

Beauty Counselors, Inc.—

—_

Liqueurs Corp..

Art Metal Construction Co.—
■

Industries

Beacon Associates, Inc

Building & Equipment

Corp.

trols

Arrow

largest bank

Building design and construction
1 Bank of
California, N. A—

Arrow-Hart & Hegeman
Electric

Nation's

Furniture

Second Table

Bank of Amer. NT&SA.

5.0

utility^

gas

——_

Over-The-Counter Consecutive Cash Dividend
Payers From 5 to 10 Years Appear in the 1

Operating public utility

gas. utility

7.3

3.5

1.54

Bank

4.9

20
28

6.7

Manufacturers of pharmaceuticals

3.3

.Detroit real estate

Arkansas-Missouri Power Co. *20
Electric

dairx

Public

Electric

fl-95

Baystate Corp.

hardware

Sulphite pulp and paper

Arden Farms

0.30

0.50

6.0

estate

and

4.6

Drills and boring mills

Badcer Paper Mills

Manufacturing Co

Baxter

store

Stores, Inc.

4.2

wax

Cotton and rayon fabrics

2.7

Inc

Paints, enamels

—

Co._^__—

Aluminum smelting

West

27%

wrenches

Smelting

Arizona

1-1.17:

mfg.

4.3

60%

Bausch Machine Tool Co..

Ansul Chemical Co.—--

2.80

furniture

Badger Paint & Hardware

Large variety of traps

1957

2.30

Complete line of domestic

7.0

Bates

Restaurant chain

6.2
•

toiletries

B. M. I. Corp

products

1957

on'

Paymts. to
June 30,

Inc.

—

Operates Indianapolis

4.0

1.20

1.00

loans

Mills

and

1957

28,

*21

Microcrystalline

(Jacksonville)

Cotton fabrics and yarns

3.9

June

Barnett National Bank

insurance

Automobile

30,

Investments, automobile financing

6.4

June

Based

►

Multiple line insurance
Bankers Trust Co., N. Y
Bareco Investment Co
Formerly Bareco Oil Co. Name
changed May, 1957.

Stores

and

1,
24

6.9

producing and distributing

Cosmetics

1.00

71/4

Bankers & Shippers Insur.

E-Z

Ayres (L. S.) & Co
24

0.50

12
and

Auto Finance Co.

and

Years Cash

2.4

Avondale
1.10 "

5.4

2.0

Animal Trap Co. of America■

Service

;

storage

tion

18%

1.20

;
-

Casualty Insurance

and

cold

Avon Products

Anheuser Busch Inc
Beer

0.55....

"12

Paul)
and

Company

coal,

Quota-

12 Mos. to

Divs. Paid

1.00

Steel

1.25

% Yield

Extras for

secutive

1957

Atlantic Steel

4.6
4.5

sunt

Amphenol Electronics Corp.Precision

34%
26

1957

Approx.

Including
No. Con¬

Paymts. to
June 28, June 30,

Atlantic National Bank
of Jacksonville

2.8

bricks, tile

Amicable Life Insurance Co.
Life insurance
'
;
'*
' [

Fire

Trust Co.

American Vitrified Products.

Anchor

Curb

2.50

Cash Divs.

tioii

service

Atlantic

1957

Amer. Trust

June 30,
1957

Based

% Yield

Extras for

Years Cash

Approx.

Including
Mo. Con¬

12 Mos. to

% Yield

Quota-

N. Y.

Teletype NY 1-376; 377; 378

Walter C. Gorey Co.
—A. M. Law & Co.

page

The Commercial and Financial Chronicle

Thursday, October 10,. 195X'

* !.

C :•

Markets

By ROGER W. BABSON

: \

New "toll" rivers to be initiated after
in

Some

highway

clay

will

program

blossom

rose,

it is called the "Magic
This
includes
the six

That is why

Circle/'

Nebraska,

M i s souri, Okla¬
o w

homa

a n

total

have

miles.

water

of the Magic

the

land

which ? interests

wood--

®ntire

fay

United

45 feet)

./,

States

fhof

cnrhp

in some
the Magic circle instead of, letting
plenty of rain. .Unfortun-, it be wasted in the Artie Circle.'
nately, however, it has very dry These 400,000 square miles will"
periods for some years, and then be giad to-pay Canada' for this
a deluge which takes away good.
water, which is now of no use to
topsoil and does other harm.
Canada.
j♦
i
'. This * lack
of regulated
water... * pians' should immediately be
rmns
holds back agriculture, handicaps
made and negotiations started. Wer
industry, and makes retail trade should not wail until we, are in
ait
very fluctuating.
There is much dire need of the food from the

Christopher; Adds
v

;

talk

form of Federal in¬

some

surance

periods,
wholly

offset

the

nation's

dry

very

such

Where

the

Water Will

Come
The western
blessed with
rainfall

heavy rainfall.

Great "Bear

This

four

lakes:

Great

Lake,

their

Slave

formerly

Sons

La.— A.

has

conducted

his

own

5.7

0.80

40 %

-^,

2.0

5.0

j.ob 'Hy2i%

;

4.7.

'
*'/

•

vessels, valves/and tanks

Bloch Brothers Tobacco Co..

46 ,*

6.1

.22%.

J3VA

4.5 (

Pressure

}

^ ?"Mail -Pouch" -chewing tobaoco
Blue Bell, Ine.__/_J_

'„

Manufacturer

'clothes^<:

and

work
^

16%

5.1

59,-;.
:v

0.85"

33/

7.9

3.3

"• i

?/• "*•

2 1

play V

[

■ -

-»•_

t2.50

Bobbs-Merrill Co.

0.5Q

ij-

0.70

Corp.

Book

Inc..

4.2

publisher

Bornot, Inc.

-j

1734/

'1.40

Boatmen's Natl. Bk. St. Louis

Chain

-121/2

;

5.6

cleaning

dry

-Establishments

Boston Herald Traveler

in¬

1.00^

5.3

Newspaper publisher
Pire

Insurance
and

1.80

321/2

5.5

;

casualty insurance

Bound Brook Water Co.__„_

/Operating public, utility

—

;

/ 5%

0.30/

.5.2

Bourbon Stock Yards Co.—_

*32

2*60

'4.00

6.7

Louisville stockyards

•

0-80.:

1.50

Bridgeport-City Trust Co.
* : 'v.
(Conn.) _.2____
2__al03
.Bridgeport Hydraulic Co1.—*— ;67

1.30

331/2

3.9

1.70

291/2:

5.8

30%

5.0

•Boyertown Burial Casket
Miscellaneous

;

Branch

friend Mr. Fowler
W. L. Robertson Opens Here the water is not only wasted,
of Homewood, Ala., • deserves the
but
dangerous fogs , are created credit for this idea although it is
DENVER, Colo.—W. L. Robert¬
which affect ocean navigation and only a portion of his
grand plan, son Lisp conducting a. securities
the climate of various regions.
» ■ He believes. that as soon, as the
business from offices at 622. South
Some day ah artificial river will
Government completes its pro-'- Logan/.
« ..■■■■

5.1

supplies

Banking & Trust Co.
/

(Wilson, N.

;

—

t.■

Supplies water to several

:•

;

2.4

1.80

'• X ::r''

•

f 0.70 2

6.4

Metal fabricator,...... *
BritiSh-Anrerican Assurance /;

* *

—

•

-y

3.82'

2—2——.:—- ' 23
.'•* / Insurance other than life
" *

service

car

Bristol Brass -/—*

Armored

•

Brinks, Incorporated —2
z ^ v

•*

—

**n Connecticut, communities'

Company

2 BrocktOn* Taunton

funeral

15%

q/rU1'

1.25 U 22

< :

Operating,public utility- yL* >

6.3

1:40

Really,

; 20

1.40

Edwards
&J Hanly have opened a branch
office at 3076 Hempstead TurnpiKe under the direction of Rob¬
ert V. Barger.
t
,j "J ■ /',

Work of John W. Fowler, Jr.

7.3

4.9

Hanly Branch

LEVITTOWN, N. Y.

31%
102

\:i

3.2

L25

Black, Sivalls & Hryson;__^j a28.

Edwards

5.00

/Bladk Hills P6wer : & Light//

opened

Boston

change because of pppulation growth and export demand.
.

Makes pkper ahd pulp, mill "*"
-.equipment

•

vestment business in Lake Charles.

soon

> Lake, Lake Athabaska, and Lake
Winnipeg.
These are part of a
} tremendous system carrying this
fresh water into the Arctic Ocean.

CHARLES,

9.5

ing under ; the * management of
George W. Clarke. j Mr. Clarke

storing;.but this situation will

are

S
;

for?

;

Household Appliances

branch office in the Weber Build¬

land

perhaps buy more. A Federal
Authority will someday be organ¬
ized to- build the new river, the
bonds of which should easily be
paid off by "tolls" on the in¬
creased crops,
Today we have a
surplus of certain crops which we

From

collects

retain

LAKE
Edwards

Canadian

these

should

day

Water Co.

Birtmart Electric Co

who

some

will

•

Trust National
(Birmingham, Ala:)

Bank

with Hill ..Brothers/and
DempSey-Tegeler & Co. 'f v

A. G. Edwards Branch

etc.

•Black-Clajysop Company.

merly

and

part of Canada

which

irrigated

waters

"rainmiaking" by chemicals is only
"robbing Peter to pay Paul."

Those

breadbasket.

land

own

insurance
is
unnecessary. 1
Moreover,
but

was

r2.30'

Machinery for-paper mills;
& Son__
—-—--.-33

Christopher, & Co.,

5100 Oakland Avenue. He

sheeting,

goods;

r, Asphalt shingles -1

5.3

Birmingham

ST.. LOUIS, Mo. — William H.
Mansfield has been added to the
staff of B. C.

f 1.91

Bird

"""

(Special to The Financial Chronicle)

Operating public utility

;

0.75-

Ce¬

Bird Machine Co.—l.-—

Biddeford & Saco

3.8

-0.85

manufacturer

Cotton

„

" "'/'/

Park, Mass.

4.8

„•

ment Co.

and the World's Largest

Babson

1957

250

•

fO.98

Inc

"Portland" cement

seen

June 30,

—

Bibb Mfg. Co

(65 feet by

j"'Qfa™^er'f
tons), both. bf-wnicli^infly; p©

bought such

Paymts. to

28,

1957

2-—1

Limestone

Bessemer

years,

Pine cottons

*./

Gas

Operating public utility
Berkshire Hathaway,

Revolving'Globe (about 30 feet

soil, much* sunshine, and,

the

United States.'structed to "'utilize, this run-off
It ^as.good wafer^eiiding ir southerly/to;

RojrcrW.B^hson

June
-

12.00

;

tion

June 30,
1957

Based

Textile

artificial river will be con-*

Berkshire
(

3^0^^ ■ SeliefXp
sno^n _°_n.-yrea*
iviap

lonrj

nnch,r0

koiipup

Trust Co.

/.(Reading, Pa.)

running off through the St.

needed.

Quota-

Philadelphia hotel

Berks County

being wasted, it would flow
westerly and .be distributed where

Wellesley,

I have

Magic Circle.

breadbasket

in-

nniu

n/r

% Yield

12 Mos. to

and

Hampshire; in lakein
Florida; - and, • of

1 nnH
land

course,

potential of
being1 the

B,k.»

secutive

Divs. Paid

Benjamin Franklin Hotel Co.

Approx.

-v

Including
Extras for

Years Cash

Lawrence into Ihe Atlantic Ocean

interested

front

the

has

Cash -Di vs.
't'

No. Con-

Mountains, giving sufficient water
supply to Southern. California,
Arizona, and New Mexico. A sec¬

lands of New

Because the
area

Where Trailing Starts and Never Ceases

One, along the east side of
Rockies, starting from Fort
Peck
and
following the Rocky

the

My Personal Investments

400,000

square

built:

;

directions to provide

Circle.

area

about

different

water for all sections

Arkansas,
which

and

will

am—...,n

rr^;_

states of Kansas,

three
South, "toll"'-rivers

there

be constructed from these la^s»
across'the Canadian line south- ond further east would feed the
erly to the very Center ;of the Magic Circle ~ by - gravity
and
United States. This Center will wouj(j start from an elevation of
2,000 feet; while the third would
be near Greenwood County,, of
which Eureka, Kans., is the hub. change the flow- of the Great
From Eureka, canals will radiate - Lakes so that instead of this fresh

Central

great

our

that

North

completion of- proposed

is - recommended by Mr. Babson
depicting what can be done to increase the breadbasket
potential of our semi-arid Central West. *

Federal

West

lieves

Gas Co.

1.00

0.75.

3.5

6.7

Glass containers

24%

3.0

•

Brockway Motor Co.
f

■.* X ~

Name changed to Cor tland Co.

■

Brooklyn Garden Apartments, Inc. i

Own

in the

•

-■■)

and

Stockholder Relations Field
no

accident that there is

pen

"Gordon"

logotype..,. As authors of periodic

Progress Reports for many a growth

5.7

•

hosiery and

0.40 / :

'4%

8.4

1.20-

5.0

f 0-675

17%

3.8

underwear

tools

Wholesale-drugs

Bryant Chucking Grinder Co.

company, our

105

6.00

Brooklyn

Brunswig Drug Co.———
*■

our

two

Brown & Sharpe Mfg
Machine

It is

operate

garden apartments

Brown-Durrell Co.

Financial Communications'

•

Manufacturers

0.80

: III/2

1.60

381/2

0.20

;

7.0

.:-

4.2

internal

pen name is synonymous

x
.

with financial

in all good reporting, the emphasis
.

concisely and crisply told. For

convinced

that all

our

news.

-*.

And,

facts—clearly,

publicly-owned companies must

Copies of the information

■'

use every

upon

request„

-/"Corp;

witt

—

Oil Co.___

Continental-. Oil

Hotel, in

Poconos

group

31/8

•

0.22

120 Broadway, New York 5, N. Y.
WOrth 4-6056

- .

1622 Kirby Bidg., Dallas 1, Texas

—

*32"; >/0.60
19

3.50 2

17 x

9.2

25-

and

specialty

391/2

fl-96

5.0

6tores

Riverside 2-3523
.

0.70
1.50

5.50-

using devices

YUkon 6-2842

Industrial
*"

Co.__

and controlling in¬

struments

Details not

complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.
2
..

a
•

x
.

♦.

Incb'ding predecessors.

"X T Stdck is. oh' $2- yearly .basis':* The extra .3Q; cents/was

13.8

acoustics, radiant ceil-

ing, recording

•

6.5

Burgess-Manning

4, Cal.
' A , 2

5.4

Dry cell batteries and battery

-.
»

TRtnity 12V5

Russ Bidg., San Francisco

>3.5

Burgess Battery. Co J—_— a23
14, Cat.

•

^Production of steel castings

Department

Bank of America Bidg., Los Angeles

' 9.3

;

BuUock's Inc,

.Stockholder and Financial Relations

6.4
•

Burgerrheister Brewing Corp. al3
('

•

Buckeye- Steel Castings Co.22

conkfin

steel- forgjngs

Buck Hills/Falls Co
-

'Z2—2

Buck Creek

Mariuiactunng

xr-

lagging behind in

release and distribute available

Buchanan Steel Products

> : the KEEN COMPETITION for the investor's dollar that is constantly being *'
waged4n the CAPITAL MARKET by over 11,000 listed and unlisted companies.
«

Bryn Mawr Trust Co.l—

past experience has

ethical too! available to them in order to
keep from

grinding machinery

"195.6' calendar

c.t Dividend, rate
1957

.year
,to
increased' to 75

was

quarter.

'
-

•

cents-, beginning

paid/to -bring
'

V-/

.4!.

Operating public-utility

Brockway Glass Co

109

■>.'

witlf; Gct;4L

,-.j

; ;
* -J

Volume 186

Number 5680

.The Commercial and Financial Chronicle

(1583)

As Al
will conclude with sessions at the

Fabulous Over-The-Counler Market:
Where Trading Starts and Never Ceases
'

Cash Divs.

12 Mos. to
June

Divs. Paid

Quota-

Based

tiorr

-Paymts. to
June 28,
June 30,

30,

1957

SAN

_r_

1.60

24%

FRANCISCO,

nominated

been

6.5

.......

•

Business Men's Assurance Co.

;

of America

—-

0.50

1.40

Metal-products

0.60

an¬

from

kin

the Mark Hop-

Southern shoe chain

Corp.

California

timber

lands

2.50

221/4

2.00

11.2

4.3^
'J

•

California-Pacific

-v

Operating public utility

.' 34%

s2.00

1.55

29%

Cement.

products

5.3

130

SERVICE
Public

2.7

•

nominated

CO.

utility-water

V /

*-y

u2.475

6.4

38%

James

•

See

Company's advertisement

California Water &

-'•Telephone Co.

■

48. ""

pa^e

1.10;

20%

1-50,

Place

5.4

1.6

Life, accident & health insurance

Camden Refrigerating & Terminals Co-/
Cold

:f0.38

6.8

■

Charles H.
est

Henrie, and at 25 For¬
Avenue, Pearl River, N. Y.

with William C. Meyer as repre¬
sentative.

stampings, plating, castings ,*•
;

.Bakeries, Inc; —*11
Bakery chain -" *
Cannon Shoe Go.^_—^—_—

"1.25 '

27'

4.6

•

Retail
"

shoe

0.45

7.8

stores

Carolina Telephone and Tele-

.graph Company

^—'J

8.00

1.90

148

5.4

Operates telephone exchanges

Carpenter. Paper Co.———Distributor

and

paper

■paper.--.™-**-'-

products. Manufacturing of paper
products

Carter

Underwear

(William)
,.

■

Co.____„_ *25

LEE HIGGINSON

•

5.1

;

9.00

155

5.8

CORPORATION

Carthage Mills, Inc.
Floor

37.

coverings

-*.

17 *' ,'2,00
- '•
•
/

•

Cascades Plywood Corp.10
Plywood .....
i
Caspers Tin Plate Company.
18

8.2

24%"

0.525

■

2.00

; 25%

7.8

/;.8%*I

6.5

•

Metal

Apartments

15! v

Corp.:

Owning and operating apartment
bouse (Washington, D. C.).

Central Bank & Trust Co.

;

Central Cold

royalty

basis

•

■

..."
Gas Co.—

■

0.90

Indiana

Central

Gas

1.50

1.60

"0.80

;

17"

: 1.55

National

1.80
:

Allison Steel

4.0

5.3

the

Cameo

Incorporated
Cary Chemicals, Inc.

following

5.0

Consolidated Rendering Company
The Duriron Company, Inc.

4.8

The First National Bank of

20% *

4.6

-'31%

Electronics Associates, Inc.

15
:

3.00
'

■-

Co.::—12

Telephone service'

2.50

Vermont Public

—'

Hudson

•

'. '

The Kerlte

/.•

1.00

Central Warehouse Corp.,
Class A

...

The Meadow Brook National Bank

5.6

17%

Morningstar, Nicol, Inc.

Operates warehouse in Albany '*T

Investment^rust

"Central West
♦

Cha:in Store-Real Estate' Trust-

•

Retail

store properties

2.50;

•

r
'

5.50
,

Shulton, Inc.

8.3

30'

•'

■

6.5

Ages Corporation
Corporation

Shea Chemical

■' 1 *

;

' ' !

; " '

Rock of

5.0

St. Croix Paper Company
Speer Carbon Company
Triangle Conduit & Cable Co., Inc.

Williams and
Details

not complete as

to possible longer record.
f Adjusted for stock dividends, splits, etc.
s Adjusted
for 2-for-l stock split on June 21, 1957:

• *

; u Includes "adjustment dividend" of 27^. cents paid in connection
with
change in schedule of quarterly payment dates.
Current
regular dividend rate tiO cents per quarter.

Continued

Corporation
Company ~

River Brand Rice Mills, Inc.

~;0.30

Utility Co:__—--16^

Operating public utility

-22"

National Blankbook

6.5

V15%";
•

Central West Co.,

.1.00

National Aluminate

(

—

'.y

'*--*

Pulp & Paper Corp.
Company
Company

Jones & Lamson Machine

4.2

;

Electric and-gas.utility

Jersey City

The Fort Neck National Bank of Seaford

;f9.95

Co.:(Cinn.)_^_* 21

Sharpe Manufacturing Company
Bryant Chucking Grinder Co.

invite inquiries

/ '

1.60

< >

Brown &

■

Manufacturing Co.

Avon Products, Inc.

5.1

distribution

Service Corp.

6.6

2.00 / 38

Steel & Wire Co.——

Trust

21%

150

Central Tetephone

6.2

•.

Soybean processing and mixing ;

processing and

FRanklln 2-4500

Teletype CG 175

4.4

Bank

129" :
_—l4~16

Co.

5.3

35%;

6.00

——

livestock feed

Liberty 2-5000

...

(Philadelphia)

Central Soya

S. LA SALLE STREET

Teletype BS 452

—

Central-Penn

Central

231

5.6

351^

1.40

utility

Trust Co. (Des Moines)

-Central

STREET

■

Central National Bank &

Metal

FEDERAL

;

- -

Central National Bank of

Central

and water utility

Cleveland

STREET

Co.——

Maine Power Co.--_

Electric

BROAD

;

^Natural gas public utility' ^
Central Louisiana Elec. Co.:_

Teletype NY 1-917

*20
1

Operating public utility

;

CHICAGO 4"

BOSTON 7

5.7

:
-

—

gas

Exchanges

HAnover 2-2700

Paper and wall board

"Electric,

Stock

banking service since 1848

NEW YORK 5

15%r

•

Central Illinois Elec. & GasCentral

Boston

6.2

2.00

;

Fibre Products Co.,

Voting

Midwest and

Exchange (associate)

3.7

32%-

investment

4.3

33%

states

Central

York,

1.25

New

Stock

Electric & gas utility and through;
subsidiaries telephone service in
several

0.78

Storage Co.— 23

Refrigeration

Central Electric &

American

*11

mines

Members:

4.3

Central Coal & Coke Corp.—- 10
Leases

' ,46%

2.00

■

(Denver)

;

(

sheets for containers

Cavalier
...

page

28
it

Elks
Office
Building/; Bloomsburg, Pa., under the direction of

Hellman, senior part¬
Co., San Fran-

of J. Barth &

4.8

Campbell Taggart Associated
.

Campbell (A, S.) Co.—-——
.Metal

3.25

ner

~ *.

business

warehouse

storage,

7- *

Co., New York, as
Elections wilb take
at^the annual" meeting in

Marco F.

John D. Baker, Jr., Reynolds &
Co., New York; John D. Burge,
Ball, Burge & Kraus, Cleveland;
*cisco,; and resident governor of Edward N. Carpenter, Jesup &
the
association, was in charge of Lamont, New York; Henry I.
the arrangements.
The meeting Cobb, Jr., De Coppet & Doremus,

~ ~

II,

r-.

New York in November.

Operating public utility.

California-Western States
Life Insurance

Vice-Presidents and

Hetherington,

Goodbody

Treasurer.

—

»
•

Lewis

"3.50

ter of Pershing & Co.',
e.w York,
/. I
and Harry C.
Piper, Jr., of Piper, Jaffray &
Hopwood, Minneapolis, have been
Robert J.

*; :

CALIFORNIA WATER

the

5.8

7'""

Utilities—'14

California Portland
Cement and lime

•.

•

vid Scott Fos-

■
r

„

Co. I..'.—21
-

ernors

holding its fall
meeting. Da¬

5.2

3oy2

___

insurance

the

association
36

15
1.60
Operating public utility
' -i*'
California Pacific Title In- -,
r
V
Title

;

California Bank (L. A.)____California Oregon Power

surance

Hotel

Board of Gov-

where

Calaveras Land & Timber

was

nounced

6.3

;

Butlers, Inc.

3.i;

45 .4

Ex¬

change Firms,

}

0.8

'JA'-.

....

the

Stock

Life, accident and health
Butler Manufacturing Co.___

—

Association of

■

...

Calif.

President

'
,

n.a.-Not Available.

■

Lewis, partner in Estabrook & Co., New York City, has

Greenhouses; radiators, etc.

Coast;

Robert J.

1957

Burnhara Corp.

oil

York; William C. Coe, Mackall & Coe,
Washington, D. C.;
Henry MT. Cook, Newhard, Cook
The two-day meeting in San & Co., St. Louis; Charles P. CooFrancisco was highlighted by/a' ley, Jr., Cooley & Company, Hart¬
luncheon at which the board and
ford; Brittin C. Eustis, Spencer
representatives of the San Fran¬ Trask & Co., New York; David S.
cisco financial community were - Foster, Pershing & Co., New York;
James A. Hetherington, II, Goodaddressed by Allan Sproul, former
President of the Federal Reserve
body & Co., New York; Henry
Bank of New York and now a
Hornblower, II, Hornbiower &
director of the American Trust Weeks, Boston; Robert J. Lewis,
Co.
- This
was - followed
Co.j New
York;
by,, an 1 Estabrook- &
Charles
McKenna
open board meeting devoted to a
Lynch, - Jr.,
discussion
of
current
industryk Moore, Leonard •& Lynch, Pitts¬
W; ' McCarthy,
problems. E. Jansen Hunt, part¬ burgh/: Michael
ner
in White, Weld & Co., New/ Merrill Lynch, Pierce, Fenner &
Beane, New York; Herbert O.
York, and President of the asso- :
ciation, presided at the business L Peet & Company, Kansas; City;
sessions.
7
■ 7
v '
; * Harry C. Piper, Jr., Piper, Jaf¬
Hopwood, Minneapolis;
In addition to Mr. Hunt and Mr,' fray? &
William C. Roneyj WrU. C; Roney
Hellman, the meetings are being:
& Co., Detroit; James H. Scott,
attended by representatives of the "
Scott & Stringfellow;
Richmond;
New York Stock Exchange and
Wickliffe* Shreve; Hayden, Stone
the following officers and gover¬
& Co., New
York; Edward Starr,
nors of this 44 year old national
Jr., Drexel & Co.i Phiiadelpnia;
trade association of member firms
Edward F. Thompson,
Jr., Lamof the New York Stock Exchange:
son Bros. &
Co.; Chicago; Jay N,
Lloyd W. Mason, Vice-Presi¬ Whipple, Bacon, Whipple & Co.,
dent, Paine, Webber, Jackion & Chicago.
■
Curtis,
New
York;
Lloyd
C,
Young,
Vice-President,
Lester,
Green, Ellis Branclies *
Ryons & Co., Los Angelesf James
■
t
G.;, Tremaine,/Treasurer,
Gude;Y ' Green, Ellis & .Anderson has
Wirimill & Co., New York. /
;
opened "a^ branch office in the
Oct. 10 and 11.

R. J. Lewis Nominated

% Yield

Extras for

secutive

Years Cash

Meets

Approx.

New

Beverly Hills Hotel, Los Angeles,

•

No. Con*

Including

Exchange Firms Ass'n

Company, Inc.

Financial Chronicl*... Thursday, October 10. Mi

[ fht Commercial md

(1584)

Continued from page

distant issues^
important enough
to idicate a trend, but witn. any
ease- in money market conditions
there will be more of a. tendency

tions into the more

is not yet

This

Our

Reporter

Governments

t*»e

JK.

By JOHN T. CHIPPENDALE,

■'

Where Trading Starts

Cash Divs.

Approx.
% Yield

Including

The tight money

terized

about liquidation.
This
however, somewhat im¬

brought

policy charac¬

time,

"active restraint" is still

the past.

secutive

almost

cases

some

that would

2.00

6.1

1.20

22%

5.3

3.00

6.7

2.00

6.1

110

2.35

47%

4.9

0.16

4.0

Chemical Corn Exch. Bank—*100

2.00

4.3

1.20

2214

5.4

5.50

6.4

7.50

161

4.7

22,

5.00

135

3.7

2.50

Chance

Chapman Valve Mfg. Co
Gate

attitude

The

quite

few

money market followers now is
that the boom is over and, with
Treasury
less of a demand for money for
bills. The 4%'bond* a product of
the
recent
new
money
raising capital expenditures, or the
of this spending
.venture of the Treasury, continues stretching out
to be one of the most popular se-- over a longer period of time, there
will be more, money available for
curities in the list.
the purchase of fixed income bear¬
General Bullishness on Bond
ing obligations.- Also, more tan¬
Market Prevails
gible evidence that the business
pattern is deteriorating could
The
interest in fixed
income
bring about changes in the tight
bearing obligations is still expand¬
money and credit limiting policies
ing and, in spite of the rather am¬
of the monetary authorities.
This
ple supply of new offerings of
would be reflected in an improved
corporate and tax exempt securi¬

ties

fro

away

which

are

Charleston Natl. Bk. (W.Va.)
Chatham Manufacturing

immediate

pears

the

bullish

side

Chenango & Unadilla

'Operating telephone company

Chicago Allerton Hotel Co.—
•Chicago hotel

th«

bond

market

be^

Stock

but

market,

the

securities

one

quotations

from

cross-section of stock

found

conditions

appears

when
are

'switches

prices of bonds moved up a bit, it

not

have
are

cause

too

Office

lecturers.
The course,
will be under the supervision of
John F. McLaughlin and Frank
turers for

official lec¬
the Investor's Informal
who

Program

the

are

the

York

New

at
Hotel, New York City,

Plaza

for women,
and

afternoons

p.m.

sizable

money

beginning

true

shorter-term

this

from

11%

7.0

5.00

•

18
molding

Chilton Co.

———.7

—.

-v

Publisher of

business

magazines

Holding

4-4>

13,500

3.6

4.00

44%

8.9

f2.00

2.2

fl.59

3.5

52%

4.3

2.00

•

manufacturer

yarn

Christiana

.145

*32", 485.00

China Grove Cotton Mills Co.
Combed

6.3
4-1

"24%

711.00

Co.———

Secur.

company

Circle Theatre Co

}

Indianapolis theatre

Citizens Commercial

Sav¬

ings Bank (Flint, Mich.)—
Citizens Fidelity Bank & Tr.

;(Louisville)
Citizens Natl.

ings

Bank

Trust

Sav-

Angeles)

(Los

Citizens Nab Trust & SavingsBank

(Riverside, Calif.)

(Savannah)

2.25

"Leo

2.6

1.50

35%

4;/r

1.60

43%

3.7

-0.90

16%

5.6

—

Citizens & Southern National
Bank

•_

_l—52

Citizens & Southern National
Bank.of, S. C.

Joins Western Sees.

(Special to The Financial Chronicle)

with

Western

the

poration,

obliga¬

Building.

Securities

National
1

" ;!

Citizens
Public

DENVER, Colo.—Calvin C. Hall

that

being made, in not
Government

Long

4.8

0.80

22:

Island.

time..

reports

amounts,

Neck,

5.3

1.25

17.

V':

"...

;

Corp.
Plastic

market

pressing,

been

usu¬

Chicago Title & Trust Co.—_

and at 8 p.m. for men

women,

boxes

Wood

will be held weekly

Friday

building

■

Chicago Molded Products

ex¬

guest

Cryan,

•

Chicago Mill & Lumber

visory organizations will function

change houses and investment ad¬
as

...

Chicago City Bk. & Trust Co.
Chicago Medical Arts BuildZing Corp.%

type of invest¬

seems

of the symptoms that is

There

Midwest carrier

operation before they will

existing

ally

It will be under the

Exchange

the
New York
firm
of
Mc¬
Laughlin, C!ryan & Co.
V V'
Noted analysts and economists
supervision

Classes

still prominent

that

new

course.,

Oct. 1L
Similar classes will be held ThursT
be done. The fact that some hold¬
day evenings, starting Oct. 10, at
ers of
selected issues are not so the Barefoot Boy of Brittany Hills
prone to sell them at currently
Restaurant in Great
of

process of being worked out.
There have been false starts in
in

indicate

reports

ment,

' :

Chicago, Burlington &
Quincy RR. Co.—

presented to the

Stock Exchange.

have to be available for both sides

bottom is in the

the pressure of the demand
for funos was so great that when

are

Government

the

view will be

public in

blankets

Woolen

The professional analyst's point
of

tion

Tax switches

the

prices has already been reached.
Those that are not quite as bold
in their thinking about the pres¬
ent position of the bond market
do, however, admit that the recent
action of prices of bonds appears

th°

kinds,

Tax Switches Under Way

the bottom of the decline in bond

all

ernments.

equation, and this is evidenced by
opinions being put forth by not a
few money market specialists that

to indicate that

corporates, tax-exempts and Gov¬

purchasers of bonds ap¬
to be veering very much

towards

bonds

for

demand

calendar, buyers are making larger
commitment in bonds. The feeling
among

Co.,

Class A-

•

Professional's Viewpoint
In New Investment Course

the

valves, fire hydrants

Chase Manhattan. Bank

optional 4s has taken some of the

attention

Co._

(A. B.)

Manufacturing products for Utility
'Line Construction & Maintenance

Telephone Corp.
.

1957

presses

in these ndtes.

"Boom" Over?

Is the

June30,

1957

Paymts. to

28,

hydraulic

Forging hammers,

existent.

ordinarily be invested in other se¬
curities still being used to buy
these issues. Competition from the

tion

June

30,

Chambersburg Engineering—

tract the attention of investors and

non¬

Based

Quota-

■

if "of

June

Divs. Paid

12-year" 4%
Government
1969 continues to at¬

It may be a bit early to say that there are indications that the in¬
the money mar¬
kets, more funds are bing invested higher prices for bonds will not stitutional buyers are getting more
in income-bearing securities be¬ bring about some liquidation. Nev¬ important in this obligation. Ad¬
vices also
point out that small
cause the feeling is growing that ertheless, it looks as though the
there we are near, if not at the inflationary demand for funds is savers are still very much intersubsiding now and, under such ested in this security. The optional
end, of a period of tight money.
Also the fact that yields of bonds conditions, there is not likely to maturity
4s are likewise being
be the same pressure to get cash. well bought and out-of-town com¬
are high is not a retarding factor
as
far as commitments in these This most likely means that bond mercial banks are evidently mak¬
liquidation with improving quo¬ ing not only new money purchases
securities are concerned.
Demand for the shortest matu¬ tations will be very much smaller, of these issues, but they are also

be large, with money

12 Mos. to

Years Cash

.this pressure on

rities of Governments continues to

Extras for

bond due in

The

witnessed in

No. Con-

In Demand

proved prices for bonds, has not
far resulted in selling such as

.being used to fight the forces of
inflation and to bring the boom to
and end. Nevertheless, in spite of

and Never Ceases

4s Still

New Bond and Note

' 1 r

/ -:

Fabulous Over-The-Counter Market:

price

severely

^depressed long-term bonds.

27
'

Cor-?

(Charleston)'

Utilities Co., CI. B—
utility.,

(Chicago)
City Nat. Bank &

.J, 1-00

City National Bank & Tr. Co,
v.
(Kansas City)
City Title Insurance

insurance '

4.3 )

Trust Co.

't "Title

62%

f2.70

'A!(Columbus, Ohio)

" 1

City National Bank & Tr. Co.

Bank
•

;*29
'«

1.0

Co.—

'\X'

3.4

.29

0,40,

6%7

■

Cleveland Builders Supply—

0.80;

•

6.1

n2.70

Manufacturers and distributors of

building materials

Cleveland

Quarries Co.

0.40

3.7

10%

Building and refractory

For Banks, Brokers and

Cleveland Trust

Dealers

21s

Cleveland Union Stock Yards
• 7

S ECU RITIES

Collins
''

Farm

and

NET in U. S. funds

Retail

(4-8974

j 4-8980

Life

16%

3.6

8.00

2.75

1.00

f 1.09

6.6

121

insulated

6.5

wire

Insurance

42%

Co.

life

food

143

0.7

insurance
—

23 %

4.6

1.24

4.6

1.25

66 y4

1.9

1.40

21%

6.5

2.00

82%

2.4

2.10

2.4

•

in7 Southeast

stores

Midwest

Central Power Co._

Colorado

TWX N. Y. 1-142

3.5

0.60

Colonial Stores

WHitehall

5.9

28%

*42

—-

Non-participating

Tel.

implements

of America

and

cable

Colonial

Traded

5.1

25%

fO.99

Co.
and cutting

Collyer Insulated Wire—
Manufacturer

1.50

•

Coca-Cola (New York)——
Coca-Cola (St. Louis)—

CANADIAN

0.50

51
-

(Los. Angeles)_„

2.4

-•

Company
Operates livestock yards

Coca-Cola

235

f5.63

Electric

light and

supplier

power

Colorado Interstate Gas Co._
Natural

gas

transmission

Colorado Milling &
Flour

and prepared

•baking

■

Columbia
Name
-to

Elevator

mixes for

•

;

■'

•

Baking Co. (Del.)_

changed

Southern Bakeries

April

1957

Co.,

Columbian National Life In¬
surance^

KING & CO.

Commerce Trust

Montreal

Stock

Exchange

(K.C;)_

American Stock Exchange

(Nashville)

;

Stock

—

Commerce Union Bank

Members
Toronto

L.ife, accident and health

...

Commercial Discount Corp.
Provides working

Canadian Stock Exchange

Pressed

oil

BROADWAY

NEW YORK

1.00

2.3

11V4

2.7

fO.925

241/4

3,8

0.30

capital

Commercial Shear, &u Stamp.
r

■

metal products, hydraulic

equipment and forgings

6, N. Y.
*
r

Details not complete

to possible longer record.
splits, etc.
paid Oct. 25. 1956.

- •

t Adjusted for stock dividends,

n
.

Includos
,

Oct.

cent

extra

dividend

1956—Sept. 30,-195? dividend payment

For fiscal year

was

$2.40.,

•

ber
-.Number, 5680
V ^

...

Around for Those

Look

Fabulous Over-The-Counter Market:

Securities Salesman's Corner

and Never Ceases
Cash Divs.

Approx.
% Yield
Based on
Paymts. to

No. Con-

Including
Extras for

Quota-

secutive

12 Mos. to

tion

•-

Years Cash

June

•

June

30,

Co.

ance

industrial.'

Non-participating'.and.
We-

•

-!»-

••

■ •

Operating public utility

.ranee

J"'.

17-14'

5 5

16%

2.25

5.6 r

ft-'-1

{

;

8.8

*-*

5.4;
4.9

per

2.375

9.00 '

570

1.6

per

Payers From 5 to 10 Years Appear in the

Tabie Starting

Tallow,

Rendering" Co./

Page 51. 1

j
-

26%*'.

2.00

These businesses have an

National

share. "

Bank

"Current yield i__

who might be

Any-

vantage

/
5.25%

these

mail;,

.The

of this

some

hit the

He gave his man.an

offering.* Please

opportunity to buy something with
which he

tively
come

was

familiar and attrac¬

Possibly you can

priced.
up

with something like this

in your own

understand—

everyone can

last week it was
'

well-worded letter with

„

the Braves.

and the Yanksl

•;.

imagina^

order blank tacked on,
eye.

there

reason
dull stock markets that!

"last

for

-Alertness,

ti-on and

bull's

....

letter soldr the
opened a substantial ac¬

stock and

p. s.—At

:foregoing

count.

some enterprising investment:
salesman an idea or two.
<
- ;

give

.Address

thinking about

making some money

days. A look through your,
classified directory might,

local

confirmation, I will
check Tor the above

to do a little

pays

your

,h:.v /'/.J:„
"Signed

want to take ad¬

- will

such

that
order will only be filled while

depositor in this bank, and
Anytown businessman, I

know you

have been bought by

come, first-served basis' and

block receipt of

$1.50

municipal bonds that,
the operators /
businesses recently.
It

TAX FREE

;

"Current dividend

they do not have to invest in mer¬
chandise or accounts receivable. I
know of several sizable sales of

there is still stock available. Upon

dren; these operations sometimes ?
accumulate quite a surplus that«

stock

;
a
of

prospering; if there are exhi¬
fee such as
entertainment park for chil¬

are

bitions that charge a

■

parks in your city that have some
cqneessions that are doing well; if':
there are drive-in theaters that*

share. I understand that this
is being sold on the 'first-

per

inven¬

opportunity to invest their surplus
in securities and quite a few of
them are interested in tax exempt'
bonds.' If there
are
amusement -

Anytown, Capital Stock at $28.50

part of 300 shares at $2'8.50
share subject to prior sale.
-

*<( "As

Cash Dividend

back yard.

Kidder Branch

Opened

BEACH, Fla. —A.("
M. Kidder & Co., Inc. has opened
a
branch office at 2451 Atlantic
Boulevard under the management
of Garland P. Wright. Mr. Wright
was
formerly in the firm's Fort j
•

POMPANO

Lauderdale

office.

7.5

;

«*-. - V

meat scrapper--* and skins
«T'"

grease,

* tilizers, hides

tele¬

Over-The-Counter Consecutive

;

"Please enter my order forshares of First National Bank

growth and now has a book
value ipcluding>. reserves of $40.46

equipment patents

following

"Att. Mr. John C. Doe

able

4.6

•'r

were '•,

"This stock has shown remark¬

Holding company, diverse interests.

Consolidated

town Capital Stock at an attrac¬ .shares.
tive figure/ We can how offer you

•

Consolidated Naval Stores..

'■'/

"BLANK & CO.

3.80-

Second

obtained

salesman

First

any,
15

Corp.
railroad

that

."We recently acquired

office buildings, in Chicago

and Newark !
\ ;
Consolidated Dry Goods Co.j
Department store chain*
i.~>; Consolidated Metal Products

Owns

1.30

Consolidated Dearborn J_.i-._Owns

V'3%\

0.275

oil, & warehousing

Sale of ice &

100 Main Street.

depositors

"Dear Mr. Tayson:

4.8

1.60

the

response:

directory and discovered
that' the "Tayson" member of the
firm was a J'Mr. J. D. Tayson" and
he sent the following letter to him:

4.3'

4oy2

0.725

Connohio, Inc*

"By: John C. Doe"

Anytown, U.SA.

bank's

This

„

printing

"BLANK & CO.

letter drew

This

phone'

f,
Electric and gas public utility -• Connecticut Printers, inc..;./

Connecticut Power

Commercial

communityi One firm we will call
"Tayson-Donald & Statler Inc."

■

Copri.Jf.Jj....

"Very truly yours,

man

important business firms in that

•

Connecticut National Bank'

-}""(Bridgeport,

350.98

Bower./

;

tures and stories about several of

-•

0.6

1.80-298

below and
in the enclosed enve¬
coupon

the

4.6

1.70 >' 371/4

and health -irisur.-./i
(group and individual)

Operating public utility

over the annual report of
wellrknqwn bank in a neighbor-,

5.5:

431-2

accident

Connecticut Light

looking

2.40 r

142

Co.
^

written

was

lope.

the

moil to

never

letter for you this

ing city, this salesman noticed pic¬

Insurance, Co.
%

6.6

&: Tr.

Connecticut General Life

that

desire

an¬

nevermet but it produced a $8,555
sale of bdnk stock. One day while

3.0

„

Concord Elect. (New-Eng.)52

might look and

I have

indicate the number of shares you

imagination

some

whom the corresponding salesman

1.20

v.--''

have

create business where

man

week
-

York Pa., hotel

life,

fihd it.

other,

/.< 55

0.8

(Pa.)-** 10 * Jv 6.00

Community Hotel Co.

•

V- (Pittsburgh)

you can

0.20

Commonwealth Trust Co. v -' «./•.

Connecticut Bank

4.2

;.Vr"\

•

you

83 %

(Ky.),_i__i___—-; 16

less of a
this is one

especially when

deavor,

nature.

If
3.50

business firms

tory problems are not too prevalenti or other factors of a similar

Jersey (Jersey City%-__.~
Commonwealth; Life Insur-

many

doing

cash business and today

Ingenuity Helps!

Commercial Trust Co. of New

of the most attractive lines of en¬

1957

are

that, are

By JOHN DUTTON

June 30,

28,

1957

Divs. Paid

Who

May Have Surplus Now
There

Where Trading Starts

(1585)

Chronicle

The Commercial and Financial
i/W V
*%,■» «• •gVifc

;

•

„/

1.00^ 34%
v

Consol. Water Bwr. & Paper
24
paper and paper
~ ' - 1

.vr

2.9

;

,;* •*' Manufactures

v/„. products

Continental American Life
r

"•

Insurance

Participating life

2.8

122

1.20

bl.40

1.0;

89%

1.6

cotton' ginning

2.50

31%;

7.9

22
11

4.00

84%

4.7

1.00

15 Vs

6.6

3.00

6.8:

Continental Gin;
Manufactures

1.45

Continental Casualty Co.....
:
Diversified insurance
' •*

«*•

;
;

and health

Life, accident

V. i

'\-~

•

Co...

Continental Assurance
•

% y.
*32

Co.

1.00

15%

6.6;

29%

S.I:

equipment

National

Continental Illinois

Bank. and

Co.

Trust

Chicago

____a

Copeland Refrigeration Corp.
; * Refrigerators and air conditioning

Corduroy Rubber Co.____—
Tires

and

;

tubes

;

Cornell Paperboard Products
l

Wall

paperboard

& containers

County Bank & Trust Co.
{ (Paterson, N. J.)_.

__a

1.50

County Trust (White Plains)
Cowles Chemical Co._____._

*32

fO.48

251%

1.9

0.50

14%

3.4,

2.00

38%

5.2

Corp.

1.25

:17%

7.3

Crown Life Insurance Co.J.J

1.70

130.:*

1.3

Manufacturing chemists

Creamery Package Mfg.—
processing and refrigerating
machines and farm coolers

■

Crompton

Knowles

Wide variety of looms

Life,

accident

sickness/

and

annuities

Cumberland Gas
Operating

: 10

':o.6o

Corp..:

0.60

6.3

0.30

*15

„

Windows, doors

other 'wood-

and

Dahlstrom Metallic Door Co.
i

Doors,

Dallas
,

mouldings,

Transit

cabinets;

;

„

1.15

■

0.35

7.2

3.0

1.50

Iron

and

steel

castings

•

cold

headed

dustrial fasteners

Del Monte Properties
Real
i

SCRA$fON,

7.5

0.30

WHITE
I A,

2.60

5.0

estate

TAU»flW;^SS.

ALBANIAN. Y.
PA.

transmission stocks

preferred stocks, bank and insurance

foreign securities. The firm also takes

interest to many

FRAI^ISCO, CA(,

•

positions in special situations that are of vital
Tell

SPRINGFIELD.

•

well

PA.

CHICAGO.
SAN

in-

READING, PA

Weei(IS)

PHILADELPHIA, PA.

—J

Co.

issues and

PROVIDENCE, f.

7.1

Decker Nut Manufacturing
Manufacturer

SUtiO)

200 Berkeley

Manufacturing display equipment

•

NEWPOTT. R.

MASS

75 Fetfril

1*0.48

insurance, and natural gas
—as

|(17)

Darling (L. A.) Co
Dayton Malleable Iron Co

HIEW BEOFORO, MASS.

17 Wall -j

10 Eas

Local transit facilities

NEWAR)

YORK, N. Y.

15%f" 7.4

market", often enabling it to

capitalize on changing conditions, trends, and]
trading patterns.
Our large and experienced Trading
Department, in 23 offices coast-to-coast, : J.; >
deals in a long list of industrial, utility, railroad,

Curtis Companies, Inc._^___.

...

long experience under widely varying;
a highly developed

"feel of the

8.9

up-to-the-minute,

knowledge of the securities involved. - *

conditions has resulted in

3.8

Curlee Clothing Co

work

public utility

'/ " Men's suits and overcoats

sell orders that call for
The firm's

7.2

C6.50

Operating public utility

first-hand

also

Cuban Telephone Co._._

Through its extensive activities in all phases of
over-the-counter trading, Kidder, Peabody & Co»
is in a strategic position to execute buy and

;

Pood

will do

your

our

Mr. Alfred

Relations

investors.
trading requirements and we

best to meet them. Address

J. Stalker, Manager; Dealer

Department.

PLAINLY.

ES-8ARRE|PA.

T!M0RE,J|fD.

WORCESTER.

tOWELLJ

^SS.

Kidder, Peabody

Co.

♦Details not complete
t

to possible longer record.

b Plus

one

Continental

Continental
c

Casualty stock held.

Less

tax.

Cuban

Assurance

;

for

each" 100

.
...

FOUNDED 1865

L0ND0lNt^L*N0

LOS ANGELES. CALIF.

•

Adjusted for stock dividends, splits, etc.

in 54 cities.

Mtmbers

oj New York Stock Exchange, American Stock Exchange,
Boston Stock Exchange and Midwest Stock Exchange

=**

Continued-OTi page

(1586)

Merrill Lynch, Pierce, Fenner &
Beane; R. H. Moulton & Com¬
pany; Weeden & Co. Incorporated;

$28,900,000 Issue of
San Francisco Bonds
Offered lo Investors

Co.; The First Na¬
Portland, Oregon;
Bank; LaFreres & Co.;

Seattle
zard

Bank of America N. T. & S. A.

associates

total

offered

Oct.

City

$28,900,000

and

County of San Francisco, Calif.,
6%, 5%%, 4%%, 3%% and 3%
various

The

from

bonds

2.40%

scaled

are

maturing
inclusive.

bonds,

purpose

Nov. 1, 1958 to 1977,

yield

according

3.20%,

the

constitute

and

valid

legally-binding obligations of the
City and County of San Francisco.
bonds are legal investments

The

in New York for

and

trust funds

savings banks and in California
for saving banks, trust funds and
other

vested

funds
in

Thalmann

bonds

may be in¬
which are legal

Harris Trust and Savings Bank;
The First National City Bank of
.

New

York;. The Chase Manhattan
Bank; Bankers Trust Company;
Guaranty Trust Company of New
York; Blyth & Co., Inc.; The First
Boston
Corporation;
Lehman
Brothers; Harriman Ripley & Co.

Boatmen's

Phelps,

Fenn

National

inick

Staats

Bank

The

Trust

Illinois

Company;
Company

month,

Incor¬

Kean, Taylor & Co.; A.
M. Kidder & Co., Inc.; Wm. E.
Pollock
&
Co., Inc.; Provident

Savings Bank & Trust Company;
Schoellkopf, Hutton & Pomeroy,
Inc.; Schwabacher & Co.; Stone

Black,

Eugene

secutive

will

12 Mos. to

the

Divs. Paid

two

most

Delaware
Leased
.

Farm

bank, in addition to offering
for regular delivery, will S
certain

and

auto

type

teeth

other

supplies

Denver Natl. Bank

layed

giving them a
specified' delivery >
Feb. 1, 1958 and «'
1960.
This arrangement

payments

dates

between

Nov.

Bearings and

City, has been changed

Prudential

Investors

Corpora¬

pose

of coordinating

the

bank's

borrowing

disbursements

and

making

and

operates

Mfr.

preferences in the light
projected cash posi¬
; v '
.

A. K. U.*

Unilever, N. V.

British-American Tobacco

retire

50%

the

British Petroleum Co., Ltd.*

Canadian

Ford Motor Co. Ltd.

Consolidated Zinc

which

by
the

nix,

Liquid. Ctfs.

ITALY

parts

Manufacture

and

;

The

Jean

issues)

Arnot

President,

Reid

Award

1936

one

Institute

Banking

who,
through the integrity of character
and efficiency of work, is consid¬

Potgietersrust Platinums

women

Restaurant and

Doeskin

Rhodesiin Anglo-American

the

best

fitted

represent

Dollar

Unilever, Ltd.*
Vickers, Ltd.*
are

available.

Leslie

Shaw

the

had

firm

been

Foreign Trading and Research Departments
glad to furnish quotations and information

will be
on

these and other international securities.

Members New York Stock

for

approximately

120

Stone

BROADWAY. NEW YORK

Heavy
rine

LONDON

PARIS

8.00

132

1.7

6.1

•

0.20

1.12

|1.90

Inc
airline

f0.45

••

3Vs

6.4

5.9

37%

5.0

13.8

catering
.

Co.

Trust

5.00.

2.6*

190

f0.78

24%

0.50

3.1

6.7

Co.

*24-

projects,

Furniture

*21

4.2

1.60

6.4

3.3

4.4

■-

Bk.

industrial

54%

nonferrous

2.30

ma¬

(Chicago)
Ducommun Metals & Supply
Metals and

manufacturer

Drovers Natl.

—

engineering

equipment

Drexel Furniture

0.80

fl-24

supplies

products "...

Duff-Norton

2.70

3»y2

6.8

1.60

29%

5.5

1.10

23%

4.7

0.50

19% "

0.30

2.20

32%

6.8;

4.50

7.8

f0.70

15%

4.6

1.00

11%

8.4

*12

3.30

56%

5.8

Industrial jacks and lifting equip¬
ment

Dun & Bradstreet Inc

Duriron

marketing reports and

Co.

—

resistant

equipment

Eason Oil Co
Oil

and

Eastern

—

tinue

its

bond

brokers

activity

distributors

and

stock

Eastern

dealers

New

company,

Hear

vin,

President

Motorola,

Eaton

Paper Corp
social

record

stationery,

social and busi¬

paper,

books

cleaning compounds

Ecuadorian Corp., Ltd.

(Bahamas)
Holding co.—brewing interests

Edgewater Steel Co
Circle

wheels

and

rolled

tires,

steel

railroad

rings

ciety of Chicago to be held
10

the

Midland

Adams

Hotel.

Room

of
*

Oct.
the1

•

and

forgings

Edison Sault Electric Co
'

Autograhic

registers

'■

El Paso Natl.

' "

Bank

1.3
'

0.975

22%

4.3

2.40

4.1

Electric Hose & Rubber Co.—
_

4.8

•

(Texas)

Rubber hose

;

—

16%

0.25

El Paso Electric Co
Public utility

0.80

Egry Register Co

^ 18

1.50

31%

1.70

27%

■

4.8

Neon sign manufacturing

6.2

■

Electro Refractories & Abra¬
sives Corp.
Manufacturer

Inc.,

will address the luncheon meeting
of the Investment
Analysts So¬

7.5

Electrical Products Consol—

Chicago Analysts

England

public utilities

rail¬

Canadian securities.

Assn

Utilities Asspciates—

Holding

and

participating

2.6

production

gas

Racing

Suffolk Downs

CHICAGO, 111.—Robert S. Gal5

Operating public utility
con¬

road, municipal and public utility
securities,
bank
and
insurance

Exchange

0.10
2.00

■

Dravo Corp.

years.

stocks and

Model, Roland

•

Manufactures soybean and household products

associated

Shaw, Hooker & Co. will

Our

2.8

United States

partner of Shaw, Hooker & Co.,
effective Oct. 1, 1957.
Mr.

;

Economics Laboratory, Inc.—

with

Depositary Receipts

f1.60

Treasury securiacceptances

Savings

Drackett

Mfr.

Union Miniere

♦American

23%\.: 5.1

—

Products, Inc

Manufactures

FRANCISCO, Calif.—An¬

retirement

Antelope
Tanganyika Concessions*

4.4

Largest commercial printer in

nouncement has been made of the

Roan

28 V2

•

.1.20

—

ness

SAN

Rhokana

1.25

(Youngstown)
17
Donnelley (R. R.) & Sons— ' 47 "

banking.

R. L. Shaw Retires

Corp.*

Ultramar Co., Ltd.*

6.9

Tissues

OTHER AFRICA

Co., Ltd.

Houses,

typewriter

Develop¬

18%

Crucibles, graphite, paint

with high scholastic averages

Shell Transp. &

ment

bankers

Corrosion

given annually to
ten women graduates of the

ered

Stewarts & Lloyds*

2u ''3.8

1.30

and

(Joseph) Crucible Co.

Dobbs

the

founder

-v

publications

De Beers Consol. Mines

Trinidad Petroleum

0.675;

(Akron)

Credit and

Selection Trust, Ltd.

Trading* (Reg.)

Award

embossed scroll and $100 in
as
well as Convention
ex¬

American

S. Africa

Dictograph Products Co

Steel

established

was

Dicta-

dictating, recording
transcribing machines

Arizona.

penses.-

Anglo-American Corp. of

Rio Tin to

Association's

,•

tiles

—

sale

phone,

SOUTH AFRICA

Eagle

the

presented to Miss Ryan

was

V'-

5.4

specialties

Dictaphone Corp.

Asso¬

Bee Bush, Vice-President of
Valley National Bank, Phoe¬

cash

Suez Canal Co. (all

Lobitos Oilfields Ltd.*

the

V
".*•
\

19%

Sewer and culvert pipes,

and former President and consists

FRANCE

Imperial Tobacco Co.

announced

the

Mrs.

for

Association in honor of

Montecatini* (Reg.)

Imperial Chemical, Ltd.

Committee

ciation,

Siemens & Halske A. G.*

Hudsons Bay Co.

Oct.

6.4
"

Dickey (W. S.) Clay Mfg. Co.

Arnot

Secretary, The Cincin¬
nati Trust Company, Cincinnati,
Ohio, Chairman of the Founders'

L G. Farben

Great Universal Stores, Ltd.

Mexican

held

Operates theatre chain

Assistant

GERMANY

Eagle Oil Co.

Courtaulds, Ltd.*

Jean

6.7

financing

Pressed metal

Dixon

1957, at the
Sheraton
Plaza Hotel, Boston,
Mass.
Miss
Virginia Engelken,

Mount Isa Mines, Ltd.

Burmah Oil Co. Ltd.*

the

18%

Manufacturer of Portland Cement

and

*.4.4

-•

105 ;

;

District Theatres

Miss Elizabeth G. Ryan of The
Guarantee Trust and Safe Deposit
Company of Shamokin, Pa., was

with

1.20

743

Diamond Portland Cement—

ties

7.9;

*•:

Stamping Co

Dealers in

'♦

Mortgage & Realty ;;
--..7—

estate

40%

1.0015
1 >'• V - I. •

•;

Detroit

*<8!4

Holding company.

Miss Ryan Receives
Bankwomen's Award

Tribute

AUSTRALIA

> 5.0

•

">■

3.6

dl.80

—„

Real
•

Philips Lamps
Royal Dutch (Bearer)

,*•" J
*

0.65

auto

Co.

pll

Co._^ a21

Operates bridge to Windsor

sinking fund will be in effect

cheon

K. L. M.* (Bearer)

:■

43.50'

parts, farm equipment
and power lawn mowers
~
' -«

During this 10- purchase fund of
equal monthly amounts aggregat¬
ing 5% per annum will operate
to purchase bonds available in the I
open market.
Beginning in 1967,
period

year

Reid Award by the National Asso¬
ciation of Bank Women at a lun¬

NETHERLANDS

■

Detroit Harvester Co—,—

own

presented

UNITED KINGDOM

• •

;

" tL28

;

—

international1

tunnel

portion of
with
its

able for 10 years.

Trading Markets in

Anglo-Ecuadorian Oilfields

Trust

17*14 V 5.6

Detroit & Canada TunneL—
Owns

wThe bonds will be non-redeem¬

Foreign Securities

•
■

5.7

-A

v21

1.00

bushings

Detroit Bank

is expected to serve the dual pur¬

Now Prudential Inv.

New York

tions.

165 Broadway,

•

(Denver)' *33

Detroit

Company,

L20

Denver Union Stock Yard Co.
Livestock
1.
' £-.»
;
t
Detroit Aluminum & Brass—

dividual

8.3

~
«'

dental

of their

of Martin Brav-

-•

and

•

5.1

1.50""" 18

Supply (N. Y.)__— *31.

Artificial

Trust

name

Detroit International Bridge-

2.00

;

1957

.■

Discount Corp. of New York

British Aluminium, Ltd.*

Paymts. to
June 30,

June 28,
1957

possible for purchasers to arrange
their payments to suit their in-r

Youngberg; Trust Company of
Georgia;; City National Bank &
Company of Chicago.-. ;

tion

•

30,

1957

equipment

Dentist's

institutional

purchasers of bonds of this new
issue, the privilege of making de-

Co.—

lanterns

Dime Bank

(Holdings) Ltd.*

Based

operated by P.R.R.

Dempster Mill Manufacturing

bonds

extend

Railroad

and

Electric

switches, bieycle lamps and horns

is¬

recent

Delta
Hand

In the United States market,

sues

calculated

Borax

Quota-

sold

Co.; tion.

Bowater Paper Corp., Ltd.*

Approx.
% Yield

Extras for

Years Cash > June

issue by maturity.

Active

Cash Divs.

No. Con-

Presi¬

Oct. 4.
The
through a na¬
tionwide underwriting group un¬
der
the
joint v management
of
Morgan Stanley & Co. and The
First Boston Corp.
dent, announced

issue

selection

porated;

and Never Ceases
Including

■

;

to make an offering of $75,000,000 23-year 4%% bonds this

Co., Dom-

Dominick; Estabrook &
Co.; New York Hanseatic Cor¬
poration; Roosevelt & Cross In¬
corporated; F. S. Smithers & Co.;
Spencer Trask & Co.; Andrews &
Wells, Inc.; EldrCdge & Co. In¬
corporated; The
First
National

man

...

Where Trading Starts

construction & Development pro¬

Bank

ber,
Jackson
&
Curtis; R.
W.
Pressprich & Co.; Reynolds & Co.;
Shearson, Hammill & Co.; Shields
& Company;

The firm

Los Angeles; The Northern Trust

page

poses

Co.; J. Barth & Co.;

Saint Louis; Clark, Dodge & Co.;
F. S. Moseley & Co.; Paine, Web¬

Incorporated:

Smith, Barney & Co.; American
Trust Company,
San Francisco;
Security First National Bank of

Co.; Ladenburg,

Fabulous Over-The-Gounter Market:

The International Bank for Re¬

•

from

The

which

investments for savings banks.
Associates in the offering are:

Company;

Witter &

William R.

opinion of counsel, the

will

National

Continued

$75,000,000 of Bonds

First

Dean

to maturity.

bonds

World Bank to Offer

C. J. Devine &

tional Bank

and

J. .Thursday, October 10, 1957v

The Commercial and Financial Chronicle

•

♦
a

22
of

088

10%

5.4

abrasives

Details not complete as to possible longer record.
Adjusted for stock dividends, splits, etc.

Including predecessors.

d Bank

paya

45c

basis,
n.a.

Not Available.

quarterly

dividend.

Yield

computed

that

Volume 186

Number 5680

The Commercial and Financial Chronicle

...

(1587)

Fabulous Over-The-Counter Market:
Where Trading Starts and

Dime

Never Ceases

•

■

New F. H. A. Rate

No. Con-

•

Extras for

Based

Quota-

12 Mos. to

secutive

tion

Years Cash

;■

Divs. Paid

June

30,

28,

June 30,

1957

Paymts. to

Elizabethtown Consolidated

price of

Natural

1.50

5.0

(Consolidated)

1.60

38%

1.35

54%

4.2

;

Operating

public

utility

Emhart Manufacturing Co.—

;

2.5
»

Glass industry machinery

Empire Southern Gas Co
Natural

gas'public

Oil

production and

refining

1.05

'• '»

utility.

0.30

—

f2.91
2.00

and

plastics.

Erwin

mills

•

1.7

•

3.2 ;

12%

10.40

■

Oct .V 6

•"

0.80

0.75

4.00

7.3 ;

10%

—_

,'i:

6.8

*29

145

10.80

2.60

loans

^'°-6:

1.00

Company

and

magnetic

1.85

5.8

2.7

;

Manufacturer

rate

6.5

,1-2.35

3.9

Dairy

products and frozen

Fairmont

*23
*48

Fall River Gas Co.____
public

Manufactures
for

418

foundries

chaplets
• -

Lone

1.425

23%

6.1

Farrel-Birmingham
Heavy machinery &

9.7

Bank
22

machine

4.3

2.00

5.4

3.00

.(Calif.

Beach

0.75

i.oo

;

tools

Fate-Root-Heath Co.-

;,7.xV

Manufactures locomotives,-ceramic~

Miseel.

rubber

retail bake

ronto

re¬

the

1957-1958

ear-

0.35

4.00.

5.0

1.35

19%

0.90

—

are:

Lascelles

Works

1.50

17%

1.50

Vice-Chairman; T. G. Mulligan of

Corporation

Inc.-

4.65

Ferry Cap & Set Screw Co.

0.40

fl.92

4.50

5.9

4.6

59%

5.0

4.1

50.00 1300

3.8

12.90

of
Ross
Knowles
&
Company
Limited, Treasurer.
E. A. Williams, The Canadian
Bank of Commerce; F. A.
Blain,
A. E. Ames & Company,
Limited;
is
>

homes, the liberalized
down payment terms would have
-

had

effect.

"The

interest

rise

D. L. Erwood, Harris & Partners
home-buyer
L. F. Gower, Midland
is concerned.
It amounts to only •Limited;
.Securities
Corporation
16 cents per month per $1,000 of
Limited;
F. A. Williams, James Richardson
a
30-year
mortgage;
$1.60
"per

negligible

mcnth

the

as a

case

loan
"This

far

the

negligible

compares

with

-r-~,000

the
'

the

ited
the

of investments -The

1941; a rise of more
in the past year alone

3%
costs

labor

and

(Newark)

Federated Publications,

are

ex-offidio

ensuing

material

year.

members

Manufacturer

(Baltimore)
Fidelity-Philadelphia TrustFidelity Trust Co. (Pgh.)
—

Freely Determined

"Money

Turner

now

with

point makes

Fifty Associates
real

Boston

estate

Real estate and

securities

Joins Weston Staff.

difference to lending institutions.
It helps cover the increased cost
of doing business, which cost has
risen along with all other costs

LOS

ANGELES,

Calif.—Patri¬

cia A. Mora has joined the staff of
Daniel D. Weston & Co., Inc., 618
South

Spring Street.

At Tour Service

fire

Bank

holding

51%
33

FIRST

1.30

28%

4.6

1.70

33%

5.1

1.20

3.8

•

—

CORP.

BOSTON

4.75

561%

8.4

National

page

23.

Direct Wires to
12

0.85

20%

4.1

Natl. Bk./Houston -24

il.93

3.1

i0.97

2.4

First Natl. Bank of

Akron

—.

First Natl. Bank of Atlanta

—

*28

fl.47

First Natl. Bank (Baltimore).

2.50

First Natl. Bank (Birming.)—

el.40

First Natl. Bank of Boston
*

—

173

3.05

4.6

50%

5.0

3.1

4.6

Bank

not

also declared

11.11%

stock

in January 1957.

Continued

Evans MacCormack & Co., Los

page

Angeles

Reynolds & Co., Philadelphia
Burton J. Vincent &
Dallas

Co., Chicago

Rupe & Son, Inc., Dallas
•*r

complete as to possible longer record,
t Adi'isted for stoc^ dividends, spl'ts. etc
Details

STOCKS

•l:,

Bank

Trust Co.. (N. J.).

First City

OVER 350

banking

See Company's

First Camden

1-4844

FIRM TRADING MARKETS
IN

company

B^nH)

Investment

NY 1-1825 &

3.9

First Bank & Trust Co..
CSoutv

New York 5

Exchange Place

HAnover 2-0270

3.5

1.30

(Newark)

Insurance

First Bank Stock Corp
-

1.80

First Amer. Nat. Bk. (Nashv.)
-

underwriter

Firemen's Ins. Co.
Diversified

Singer, Bean & Mackie, inc.

Fireman's Fund Insur. Co

2.00

(Boston)i— *11

Finance Co. of Pennsylvania

Western

12.97

—

3.25

—

Fidelity Union Tr. (Newark)
Fifth-Third Un. Tr. (Cinn.)

(Special to The Financial Chronicle)

great deal of

7.6

4.0,

Blyth

Co., Inc., Russ Building.f

/\Tf

commodity, the
same
as
food or any manufactured product. The price of money
:

SAN FRANCISCO, Calif.—Gene.

5.2

;

Joins Blyth & Co.

Bk.

Natl.

for

(Special to The Financial Chronicle)

products

screw

Fidelitv-Baltimore

Michigan newspapers

memebrs

Jarvis, Wisener & Company, Lim¬

nation

0f 142% since

than

ties Corporation Limited and E. P.

money

over-all rise in

costs

serve

board.

new

C. W. McBride, Midland Securi¬

increase

mortgage
an

Sons will

$10,

" ~

very

cost

4.8

machines

Co.

Limited,

Nesbitt, Thomson and Company
Limited, Secretary, and G. I. Ryan

4.2

and

board

Dominion

8.7

Screws

Federal Trust

new

Securities

6.7

Multiple line insurance

Federal Screw

the

warehousing

compress and

Federal Insurance, Co

the
To¬

Warehouse

The

season'at

2.4

meeting of the association.

6.9

Association

5.0

ade¬

Montreal

Chairman
Traders'

Other members of the
•

—

financing

these

for government- .construction
scarce

return

Canada
Bank

Governors

Bond

annual

number

The

shops

Fed. Compress &
Cotton

1.15

■---

Federal Chemical Co
Fertilizers

goods, sponges, -

Federal Bake Shops, Inc.____
Chain

f
■

machinery and lawnmower y *
sharpeners v'.'V

Faultless Rubber 1——

became

money

„

Merchants

Farmers .&

Board

attractive,
due
to
their have risen every year since the
higher yield."
'
'
end. of World War II, but until
Pointing out that The Dime of oniy a few months
ago, interest
Brooklyn remained active in the rates remained
stationary at their
home mortgage market throughrpre-war levels."
/mi4
4*
'
out the tight money period, "de¬
Encourages Savings
spite, unrealistically low interest
grates," Mr. Johnson declared:
"On the other hand, the quarter

chills

and

elected

more, -

8.4

utility

Fanner Mfg.

'Of

35.00

motor cars

Operating

money

found other types

Railway Motors,
_

•"

lier this year was because lenders

foods

Inc.
Railway

5.5

23%

if the interest
acceptable," Mr. Johnson
The primary reason that

backed loans

1.30

f0r

mortgages
is

mortgage

bearings

Fairmont Foods Company.— '.« 53

to rise

in-

^willing to supply the

terms

interest

the

that adeand always has

Tome

—

and

"This indicates to

said.,,

ball

marked

mortgage

quate money is,
been, available for investment in

4.4;

50%

3.30

the

permitted
in August.
'

separators

snown

since

liberalized

■

regarded

TORONTO,

rate

wholesaler

Fafnir Bearing Co._

Smith
was-

The

have

crease

abrasives

Faber Coe & Gregg, Inc.—
Tobacco

encourages

the

for

market,

increased

"Much of this activity resulted
,from the substantially lower down
r
,
payments permitted by the FHA
in its August ruling.
However,
Bank of Brooklyn. unless
mortgage
lenders
were

reports from the FHA that applications, for
governmentr-insured

Operating public utility

Exeter Manufacturing Co._-__
Cotton and glass fabrics ; ^
Exolon Co.
artificial

were

Manufacture

the

of FHA mortgage applications.

Electric

Hampton

George C. Johnson

The banker's domment followed

Participating <te non-participating

Exeter

this

Elect New Board
;

immediately brought

mortgage

flected

b y

turn,

Toronto Bond Traders'

millions of dollars into the

many

Dime Savings

Co.

(Toronto)

action

-home

George C%
Johnson, Pres-

5.2'

15%

ident
25

Excelsior Life Insurance

This

,av

asserted

was

interest

historical policy of
quate rewards to savers."

months, the

fact and a
few.weeks ago allowed the inter¬
est rate on its insured mortgages
;to be increased from 5 to 5%%.

■

economy/ After many
FHA recognized this

for

home
buyer
'/is concerned,"

6.4

millions,

fa*;

lenders
or

present
trend
toward
interest rates, ~ which
is

should
to

the
price, of everything except money
nrs risen
greatly because of the
inflationary spiral of the nation's

nation, and
%s negligible

co.

_—____—

4.7

•

other

"For the past several
years,

the

mills

Water " power

3.00

Mills, Inc._w.____1

Essex Co.

; 4.6;

and

this
per*

spreading throughout the world,

fact
rate

{

holding and operating

Textile

of other commodities.'

un-

molded

•mortgages'
througho u t

Erlanger Mills Corp.—______
Textile

dollars

available'

;

2.6 ;

■>

Corp.___;.i.__,__

products

108

York Central

Resistor

told

1.6

1.25

Efie & Kalamazoo RR_I

Electronic

terms

.minia'cia^wh

...

; 3.2:

182;

Equitable Security Trust Co.
162
4.00
; (Wilmington) 'iiiiJiLt'
42- "fO.97
Equitable Trust Co. (Bait.)—

Erie

•

reinsurance

New

Employers Reinsurance Corp.

Leased by

4.3'

24%
"

'•

Pire and Casualty insurance
line

-"has made

Empire Trust Co. (N. Y.)
Employers Casualty Cq._____ *33

Multiple

liberalized

mortgages injured by the Federal
.Housing Ad-

„

Empire State Oili—i
r

"The

—the rate of interest paid for its
use—should be governed by ,the
same forces which set the
prices

recently

•

higher

The quarter, of a point rise in
interest rate, permitted under the

the

and makes more
available for mortgages.

savers."

y
:•

savings

distributing utility

gas

banks

But

economy.

interest

people who entrust their
savings to the lenders for invest¬

„

Elizabethtown Water Co.

the

ment.

money

■

-Gas Co.

rise

higher-dividends

pay

should be freely determined and approves "return to the historical policy of adequate rewards
argues

1957

1
.

Brooklyn Savings banker is not surprised by heartier mortgagesupply response to recent FHA rate increase. Mr. Johnson

important

mits
r.r

Approx.
% Yield

inflated

our

small

Cash Divs.

Including

Savings Head Pleased With Response to

The Commercial and Financial Chronicle

(1588)

Continued

reached

from page 3

This

highs each month.

new

trend may be expected

continue.

The Economic Outlook

What is the business outlook

(5)

for 1958?
to

Js to make the rolling adjustment

take the

place of the old-fashioned
business cycle.
(3)

heard

have

"the

phrase

(4)

industry of

new

Would

discovery."

lete.

its

further

you mean by that
implication for the
development of our

for

the

the forces that will cause

economy? ?

•

outlook

re¬

the

foresee?

trends you

(A)

By "the new industry of
discovery" I mean that the mak¬
ing of innovations has become a pursued by the Federal Reserve
The men in charge of
way of making a living. A large system.
enough body of knowledge has ac¬ this system have adopted a new
of
its responsibility
cumulated to make it feasible to conception
put research on a profit-making and authority and one that
basis.- More than 200,000 engineers changes in a substantial way both
and scientists make their living the Federal Reserve system itself

pointed out, it will

soon

significant in several re¬
In the first place, it means

covery is

spects.
will

some

play

a t

time to

On the
no-

change

before,"'and that

and

expenditures

are

innovations,

because

com¬

which

slow

fourth

outrun

will

have

productive

capacity

UNDERWRITERS

least at

throughout

the

(e)

quarter.

individuals

their

perhaps
1

expenditures.
will

incomes

faster,

buy
rise

they

DISTRIBUTORS

also

must

have

DEALERS

Corporate and Municipal
Securities

predicated
upon assumptions with respect to
monetary policy. I assume that in
the early months of the year at
least, the Federal Reserve will
to

overdo

the policy of
credit restraint and to retard the

expansion of the
It

convenient

1958 and

half of

consider

half.

the second

government

expenditures

(Fed-,

eral, state and local) will change
from

levels.

present

The

Federal Government may succeed
in cutting its outlays a bit, but not

much, and there

be no cut at
expenditures
will continue to rise slowly. Out¬
lays on plant and equipment will
drop by a small amount—at least,
State and

all.

recent

may

local

figures

orders appear to

indicate

drop.

INCORPORATED

CHARLOTTE
Atlanta

NEW YORK

Greenville

Asheville

long-term plans and do not change
quickly.
In 1953-1954, for ex¬

ample, when there

mild

was a

cession and when the

orders

new

of manufacturers fell rather dras¬

tically,

it took 18 months (from
quarter of 1953 to the
first quarter of 1955) for expendi¬
tures on plant and equipment to
fall 10%. Housing appears to have
ceased
to
decline, and there is
good prospect of a slow increase.
Little change in investment in in¬
the

third

Richmond

lation of inventories

liquidation,

8.00

3141/2

fl.71

4.8

331/2

4.3

Bank

1.45

140

16.00

500

3.00

(Jersey City)

such

lor

rapid
in

occurred

With

3.9

4.4

137

1.40

2.2

361/2

little

Both

investment showing
the total volume of
will
depend
upon
to personal incomes

of consumer goods.
be raised by wage in¬

will

but
personal
incomes
(helped by growing transfer pay¬
ments) will rise faster than the
prices of consumer goods, so that
some
small net gain in employ¬
ment and production will occur.
But the expansion of the economy
continue to

far less

than

2.2

-1.00

*32

'4.50

114

3.9

2.50

3.6

First Natl. Bank of Portland-.

•86

2.00

V3.00

First Natl. Bank (St. Louis)_ *38
First Natl. Bank (Shreveport)
18
First Natl. Bank (Wichita)^..
Bank & Trust

1.30

6.00
1.15

Co.

2.8 '

280

(New Haven 1

2.1

271/4

4.2

Merged Sept. 27, 1957 with New
Haven Bank, N.B.A., to form the
First New Haven National

Bank,

New

Haven, Conn.

First Natl. Bk. T. (Okla. City>
30
.*1.00
First National Bank & Trust
of Paterson, N. J
Z'^§2&.k

33%

3.0
2HZZ

f 2.82

First National Bank
2 Co.
(Scranton)

Trust Co.

2.40

40%

5.9

1.30

32!/,

'4.0

144

2.70

60%

4.4

p2.50

3.9

1.25

39%

3.2

142

2.15

5.2

1.50

3.8

1.60

31%

5.0

3.00

6.0

1.00

1.6

0.65

121/4

5.3

(Tulsa)

First National City Bank of
New York

First National Exchange
Bank of Roanoke

First National

Trust

Sav-

ings Bank of San Diego

First New Haven National
Bank

»/

(Conn.)

Created

Sept. 27,

Consolidation

1957
First

through
Na*i'»*al

Bank and Trust Co. of New Ha¬

Conn., and the New Haven
Bank, N.B.A.
First Pennsylvania Banking &
ven,

Trust Co.

(Phila.)

First Security Corp.
holding company

First Western
Co.

Bank

Trust

(San Francisco)

Fitchburg Gas & Elec. Light
Serves

Massachusetts communities

Florida National Bank

(Jacksonville)
Florida Public Utilities Co.__
Operating public utility

Florida

Telephone Corp._„vl6 "

x0.87

221/2

3.9

1.20

221/4

5.4

1.575

2OV2

7.7

1.35

5.2

0.70

1.3

1.70

6.8

Telephone company

Fluor Corp. Ltd
Plants

for

oil,

14
and

gas

chemical

■

industries

Foote Bros. Gear & Mach
Gears

and

transmission equip.

Foote-Burt
'

Drilling,

Co.

reaming,

affecting mainly small
recipients, will probably
take effect about July first—un¬

Mineral

tapping

Chemicals and minerals

Forbes & Wallace,

Inc., Class

B, non-voting
Dept. store,
•

Springfield, Mass.

Details not complete as

to possible longer record,

t Adjusted for stock dividends,
p

Stock split 2-for-l
be

$1.40

cuts,

income

Sept.

splits, etc.
6,

asked.

Stock

now

annually.
on

calendar

and

1957

Quotation

cent

year

dividend

Oct.

on
...

...

1,
.

1957,

new

was

stock

annual basis,

basis.

international

developments
increase in defense

require an
spending.
Furthermore,

by
the
1958, the failure of the

middle of

to grow at

economy

will have become

Adams & Peck

With

dal.

normal

Members New York Stock
and American Stock

Exchange

growth

will

serve

the

Exchange

each

normal rate

national

month

the

and

scan¬

sub¬

Federal
and

defensive

and

find

difficult

the

justify.

Bonds

Preferred

the

Federal

Reserve

Common

putting

Federal funds into housing

increasing
to

Broadway

New York 5, N. Y.

purpose

spending

struction

way

Philadelphia

counteract¬

later, the outlays

highway system will
stimulate considerable investment

Teletype NY 1-724
to

business,

the interstate

Telephone REctor 24949

Private wire

Federal

small

ing Federal Reserve policy.
Sooner

120

COUNTER SECURITIES

and
expanding public works for the

deliberate

Specialists in
OVER THE

funds

Unlisted Investment Stocks

1957

agen¬

available

and

cies,

Leased Line

1930

ner-

normal rate of growth, Con¬
gress
will take steps to by-pass

RAILROAD SECURITIES

Over A Quarter Century

the Federal Reserve does not
mit

Guaranteed

Re¬

will

excessive restraint of credit

DEALERS

system

however,
effects

business.
the

:"'l

4.1

Trust

First National Bank and

very

the second half of 1958 is brighter
than the outlook for the first half.

less

5.0

First National

The second half of 1958 is quite

4.4

machines

far away, so that prognostications
about the behavior of the econ¬

must

3.8

___

Bank

government spending and

private
change,
employment
what happens
and to prices
gross

3.2

-62

First Natl. Bank

(Miami)
First Natl. Bank (Mobile)
First Natl. Bank
(Omaha).

2.5

f0.94
12.21

Fort

First Natl. Bank (K. C.)
First Natl. Bank
(Memphis)

the recession of 1954.

Tax

Direct Wire to all Offices

1957

ational

First Natl. Bank

prospect for the
first half of the year. There is no
reason either for a rapid accumu¬

June 30,
1957

22
:

First Natl. Bank in Dallas
First Natl. Bank of Denver

re¬

tentative.
In
general, however, the outlook for

CHICAGO

Raleigh

1957

Paymts. to

28,

But outlays on planted equip¬
ment represent in large measure

omy

Exchange

(Chicago)
(Cinn.)

First Natl. Bank

Foote

Members Midwest Stock

June

30,

Based

construction

contract awards and machine tool

June

Divs. Paid

First Natl. Bank

the normal rate.

R. S. Dickson & Company

tion

Worth

In the first half of the year, total

little

Quota¬

12 Mos. to

Years Cash

economy.

separately the outlook for the first

will
1919

Approx.
°o Yield

Extras for

secutive

creases,

Established

Cash Divs.

Including

and

been doing since April. For the
last five months retail trade has

be¬

1958

for

ventories

(d) Rising wages will increase

that

tendency to

rate

sonal consumption

•

fast
means

rising fairly
the last year,

personal incomes and thus per-

to increase the demand for goods.

specifically,

been

during

will continue to rise at

advantage.,,In the third place, the
.expansion of the industry of dis¬
covery
also means, as I have
pointed out,-that the economy is
gaining enormously, in its ability

demand

have

rapidly

purpose ,of. ..innovations to
give
the maker of them a competitive

rests upon

the

This general
the follow¬

expected.

(b) Expenditures on housing
will probably rise slowly.

petitive than those made in search
of

the fourth quarter

(a) Expenditures on plant and
equipment will be virtually un¬
changed from present levels.

the

industry of discovery also
means that the economy is stead¬
ily becoming more competitive.
No

business in

ing specific conclusions:

character¬

istic of successful enterprises.
In
the second place, the expansion
of

assumption that there is

conclusion

markets

come more

au¬

put

important .change in Federal
policy, a slow expansion

may

adaptation to changes in
and technology will be¬

good

Reserve

bigger -role ih'<our^

£*ver

lives than

come

Federal

have

the objective
retarding a rise in the price
level ahead of the objective of
encouraging or even permitting
an expansion in production.

The rise of the industry of dis¬

that for

The

whole.

thorities

economy

billion industry.

American

the

and

today by making innovations. The
industry of discovery is a $7 bil¬
lion
industry
and,
as
I
have

economy

A discussion of the outlook

continue

The outlook for the re¬
mainder of 4957 depends in no
small measure upon the policies
(A)

stimulants

the

oil

Fabulous Over-The-Counfer Market:
Where Trading Starts and Never Ceases
Wo. Con-

mainder of 1957, and what are

plain what
and

major

drags

next year?

(A)

opinion, what is the

your

business

ex¬

you

•/•

the

and

What do you expect

from page 31

goods obso¬

of. capital

quantities

the

use

you

of the principal effects
innovations is to make large
one

cause

Continued

Thursday, October 10, 1957

...

The

interstate

con¬

high¬

Sreeweo^CampaTU^
ESTABLISHED

1980

going so slowly,
that important general
business investment are

Continued

page

37 Wall

St., New York 5

bid,
•

Number 5680

Volume 186

The Commercial and Financial Chronicle

...

Fabulous Over-The-Gowiler Market:

(1589)

page 32

continued jn

Cash Divs.

Including
secutive

lion

Paymts. to

June 28,
1957

June 30,
1957

June 30.

Divs. Paid

1957

-Structural

Fort

bus

1.83

3.0

1.00

24%

4.1

2.30

22%

10.2

Wichita *32

1.00

0.15

41/2

1.00

My*.

7,0

Pressed Steel Corp.

•f

rate for

high (though with

Fownes Brothers & Co

Gloves

Fram
'

—

and

Manufacturer of oil, air, fuel
water filters
/

Wyoming Oil Co

production,
development- -

•---»<?

on. page

41.

•'

•

' !

-■

2.00

2.25

6.8

0.40

.9%

28^+ 7.0'

4.2

ment-in

Frontier Refining Co

t^ Sver

■"

Cotton

goods

0.75

6.3

2.00

2.6

•.

Class A——

Fuller Brush Co.,
Brushes

•.•

-Fuller Manufacturing Co.-_^

6.5

15%

1.00

ql.25

31%

4.0

1.00

61/4

16.0

11-95

Natl.

Galveston-Houston Co.
Holding

will be revised.

The great threat to

mit prices

71/4

8.3

between

1.36

22%

5.9

publicans will win
victory in 1964.

* 18

holding

Transportation

1.00

5.0

company

distributor serving
Missouri, Kansas, Oklahoma and
gas

Nebraska

and

for

controls

died with the

1.00

351/2

2.8

1.65

27%

sible job

6.1

producer

General Industries Co.
Also

Plastics.

makes

steadily

1960.

high

ing to

attain the maximum pos-

(9)

In your opinion has the-Federal

"overstayed its
Has it violated the

Reserve

down

the

ployment Act of 19467
promote
ment,

production,

Em-

...

employ¬

maximum

and

pur¬

T have

pointed out that the

and authority—a conception'

the
of

they will be saddifficult and respon-

of running the country
would be wise I

They

thai

fundamental way
both the Federal Reserve System
jn

cjianges

The

economy

conception

new

responsibility and
authority
adopted by the Federal Reserve
Cleans, as I have said, that Ameri0f

uow

£aag

One

should-bear

mind, that

has had-only limited

use in the
Pas* an« that it is still imperfect^ understood. There is goodreason to believe that it has an essential

role tor play in controlling
prices—particularly in preventing

prices from outrunning costs.

0.50

1.80

17 %

is
is not surprising
that the results of credit restraint
are

mixture«of

intended

live

economy

Xfch smaU^ ^^01 m^detei"
a

wnicn a small group or men aeiex
mine what is the maximum rate

The

theory

behind the

credit

restraint

prices

can

is that

1.95

49%

fl.21

38 %

3.1

2.00

273/4

7.2

2.00

120

|2.20

443/4

4.9

1.00

„

•

Continued on page 34

5.6

Glatfelter (P. H.) Co
Pulp and paper manufacture

1.95

54%

3.6

Glen-Gery Shale Brick Corp.

0.45

8.4

30%

3.3

—

other machinery

lines

allied

Georgia Marble Co
Marble

Dealers In

production

Giddings & Lewis Mach.

Tool

milling and drilling

Boring,

machines

Bennett Manufac¬

Gilbert &

turing Co.
cloth

Wire

(Philadelnhia)

Bank

Gisholt Machine Co
Turret lathes and

Securities

Unlisted

Girard Trust Corn Exchange

tools

Public Utilities

—

Industrials

manufacturing

Brick

Glens Falls Insurance Co
Multiple line insurance
underwriter

0.95

18%

5.1,

1.00

5.6

1.50

23Y2

6.4

Cement

Glens Falls Portland

0.35

★

Portland and masonry cement

Globe

Co.
Fire

Republic Insurance
America

and allied lines of insurance

Goderich Elevator &

Transit

Co., Ltd.
Grain

elevator

Good Humor Corp
Well-known ice cream

Hose, belting and

f 0.581,3

5.2

INCORPORATED

packings

Employees Insurances-

insurance—casualty

and

York
Warehouse &
Cold Storage Co

6.00

265

Trunk

2.00

1.90

7.0

39 BROADWAY

NEW YORK 6

Detroit ice manufacturer

Graniteville Co.

1.8

fl.37

fire

Grace Natl. Bank of New
Grand

3.9

91/2

retailer

Goodall Rubbert Co. (class
Govt.

WM V. FRANKEL & CO.

Teletype NY 1-4040-4041

WHitehall 3-3960

Cotton fabrics
*

Details not complete as

to possible longer record,

Adjusted for stock dividends, spits, etc.
stock dividend on April 11, 1957.
f Adjusted rate allowing for 200%
stock dividend.
on 12 Va
cent quarterly basis.

Private

Plus 12%

Continued

New stock now
on

page

Wires to:

PHILADELPHIA

of
in

exten* the impact of credit re¬

2.9

Corp

use

rise

be halted by limiting

3.9

and

Marine

the rise in spending. But when the
growth of spending is retarded.
both - prices and : production are
uffccted. No one knows to what

10.3

General Reinsurance Corp—
All
casualty, bonding, fire and

and

unintended effects.

Commercial printing

General Metals

re-

^VnVsinc^^e^wttti
limited, it

6.9

But

the American

whole.

^ln the

Employment Act of 1946.

since the instrument of credit

chasing power?"
(A)

<*ease in
n* to
check the rise in prices,Jt is vio-

the instrument of credit restraint

^ederiil ]toereWj the ;in-

tric motors

General Manifold & Ptg. Co.

upon

The fact; that the full utilization
ofA^e economy's resources may
entail a slow rise in prices does

most

the foreseeable future.

itself and

think, to learn a lesson from the
experience of the Conservative

elec¬

small

whoppi

the danger that,

pressure

General Crude Oil Co.—
Southern

Sometimes I wonder whether

temperature

30^o

1960

Democrats are properly aware

General Controls
Automatic

to rise by 25/« or
and 1964, the Re-

1.1

0.60

Gas Service Co
Natural

rather

recently to have adopted a new
conception of its responsibilities

4.00

Gary Railways, Inc.—.

of course,

are

Federal Reserve System appears

357

-s|ahil-

the Democrats

(Indiana)—

com¬

price level

expen--®jPe^°n8-run. rate .of -growtti*

the Democrats per-

come; after

growth

pect the demand for funds to be

saying about interest rates.

take over.

stable

;

designed to meet its requirements
for
future
productive
capacity,

policy. set

ity will

packings,

Gary Natl. Bank

ditures of business

market?"

what.

5.7

gaskets, oil
seals and mechanical seals
,
-

Mechanical

This theory has not been veri-

that

-1

ments?

(A) Present investment

Hence, the Democrats will find it
difficult not to relax credit some-

Bus industry

company.

Garlock Packing Co

rate

fied by experience and rests

to the expansion of research and
development. Consequently, I ex-

It is too early to say just what the
Democrats will do, but they will
not
make
credit tighter.
They

been

(Atlanta)

Bank

the

not go far in making it easier,
they will be plagued by some
things that promi¬
nent
Democrats
have
recently

Refrigerated warehousing

Fulton

but

extremely shaky,: theoretical
foundation*
Certainly* if credit
(8) Do you expect the present restraint is so drastically imposed
high demand for funds to con- that prices are kept stable only by
timie, or do you believe in- checking the expansion^ of produstry has, to some extent, duction, there is good reason to
;
anticipated
future
require- believe that the economy is fail-

of the careless

Storage

Market Cold

Fulton

theories

is also the fastest rate of growth

responsible level and

may

4.4

t2.09

Mahufacturing heavy duty trans¬
missions, forgings and axles

creating new requirements tor
capital at an increasing rate—due

farm

fastest

patible with

vote and

the

economic policies
11

Inc.^—~

the

because they will
the Republicans in

for

appealing vto small business,
When the Democrats take over,

and marketing

Fruit of the Loom,

to
the

better than

the

But it must be remembered that
mean that operation^ Of the
should, industry is creating new needs for economy at fult capacity is incomsee' the capital .expenditures ' as
well as '
steady growth* Hence,'
gTvern- satisfying old needs./ln fact, it is

1.6

t0.24

part

annealing

refining

Petroleum production,

expect

1960

Democrats

City real estate

New York

good

„

less restrictive policy as it

outpromise
10

(Louis) Realty Co.

will

;

—

* '

depends,. on
"an extended
money rates

will

equipment

that

eventually be forced to
permit a faster growth of the
economy, will pursue a more or

0.6

104

0.60

—

Franklin Process Co..___i5iJ> 43'
v
Yarns dyeis and. manufactiurer&
55
Frick Co.
—
Refrigeration and air conditioning
Friedman

think

likely to remain rather high
1960 because I expect

;

Company's

answer

meant

Reserve

authorities,
is
bound to produce galloping inflation and to result ultimately in
collapse. Hence, the Federal Re; serve would argue* I am sure, that

Since

to avoid making promises
they cannot fulfill.

high

and
.
that the FederaL .Reserve, -though
,

INSUR¬

Insurance

that- business

2.7

0.30

agency

LIFE

era."

until about

ANCE CO.
See

what

2.7

are

FRANKLIN

•

■ ' >

461/4

;

Law, Inc.

Life

fl.25

(Albert)-Guenther

Advertising

'V-' ' ."<•••

and

exploration

Oil

Frank

Federal

°£ .wiT^g in J£6?' of the long-run.
which ^ economy is. capable
in

policy at

rates?

The

(A)

era

according

will be wise to keep their
criticisms of Republican economic

again

we are

extended

money

Corp.

Franco

believe

you

Now

have the diffi-

keep their promises.

^
they

(7)

level. Any faster rate of growth,

promises recklessly.

the Democrats have

months),,I expect
that credit will remain tight.,

1.4

cult and embarrassing task of try-

few

„

the Conservatives

expansion at less than tne normal
expansion at less tnan the normal

Industrial lighting units

Fourth Natl. Bank of

made

money

Since I expect the level of

ness

3.3

trend of

months)

dent that they were going to lose
the election.
Consequently, they

ex¬

ing to

(A)

(Indiana)
Ft. Worth National Bank

of growth to that rate which is
.compatible with, a stable price

in Canada. Last summer the
Conservatives were quite confi-

rates to be?

3.5

containers

National Bank- n

Fort Wayne

Fostoria

281/2

'1.00

—

you

(three

short-term

pect

Co.

Corrugated shipping

credit, what do

six

Corrugated Pa¬

Wayne

per

and

Party

(6) Turning to the field of money

fabrication

steel

r»

likely before 1959 and perhaps

not before 1960.

3.7

1.00

1 nrn

not

Quota-1-

Years Cash

Fort Pitt Bridge Works.

Based

Extras for
12 Mos. to

No. Con-

is endeavoring to restrict the rate

The Economic Outlook

Approx.
% Yield

growth for industry and emThe Federal Reserve

ployment.

Where Trailing Starts and Never Ceases

and SALT LAKE

CITY

The Commercial and Financial Chronicle

(1590)

Continued from page

of the last year.
But is
public sufficiently interested
to impose on employers the very
creases

the

stern

The Economic Outlook

sell

production-rather
prices. Evidence of the
last year or so indicates that the
production effects of the policy of
is-on

6traint
than

credit restraint have been greater

that price ef¬
fects have been much less than
intended.
Today industrial pro¬
duction is well below the levels
of nine montns ago, and in July
the
unemployment rate
among
'factory operatives was 6%, among
than intended, and

•

building trades,

in the

craftsmen

-5%, and among miners, 10%. The
Federal Reserve, through experitnent with the little understood

.•

policy of credit restraint and pari ticularly through overdoing
the
;

policy, has got itself into a dilem¬
ma.
On the one hand, if it con¬
tinues credit restraint at the pres¬
ent tightness, it will prevent the
from growing at a nor¬
result that the coun¬

economy

mal rate—a

try will not tolerate much longer.
On the other hand, if the Reserve
permits

normal rate of growth,
prices may be mildly

rise in

the

accelerated.

plain that the issues raised
Federal Reserve policy are
both far-reaching and in need of
study.
The economists of the
country owe the Federal Reserve
It is

vote of thanks for the bold way

in which it has

the

experimented with
instrument

untried

and

new

restraint.

of credit

It has turned

the United States into a fascinat¬

ing economic laboratory. Its ac¬
tivities are bound to yield import¬
ant
new
knowledge
about the

one

1956, hourly compensation of em¬
ployees increased by nearly 5.1%

order

hold

increase

the

year.

■

This

raises

the

and much stronger resistance

ers

demands

wage

employers

the Federal Reserve stabilize

can

prices while not

pushing unem¬
ployment above rates that the
public will tolerate and without
retarding the growth of the econ¬
omy to an intolerable extent.
(11) Do

accept the thesis that

you

the United States has adopted

gradual inflation
from

This

as a

"way of

inflation

others in that

differs

mo¬

tivated by wage increases, not
goods shortages, currency and
excesses,

spending.

such as why credit
apparently
has
very

gerous

deficit

Do you regard this

type of inflation
or

less dan¬

easier to

any

con¬

trol than the others?

limited effect upon the consumer

(A)

don't

think

that

con¬

price index and upon the terms of
veys the right impression to say
wage
settlements, whether the that
the
United
States
"has
consumer price index has an ap¬
adopted gradual inflation as a
preciable upward bias (through
way of life." We haven't "adopted"
failure to take adequate account
anything. Conditions have grown
of
changes
in
the
quality
of
up,
without
being
definitely
goods), whether it is a
good
planned, that have created grad¬
enough index to serve as one of ual
inflation and that make grad¬
the important bases of credit pol¬
ual inflation difficult to prevent.
icy or to be the basis for escalator Some
of these conditions are vir¬
clauses
in labor
contracts, and
tually beyond control, by public
many others.
policy. An example is the rapidly

with

credit

restraint

the experi¬
experience
in

the

last

two years and to explore the im¬

questions

portant

raised

by this
policy, there is needed a thorough
and impartial investigation by a
non-governmental group of econ¬
omists, bankers, labor leaders, and
businessmen helped by a distin¬
guished director of research and
en expert staff.
In order to keep
the study free of political influ¬
ences,
it should be exclusively
under private ausoices. Sponsor¬
ing such an investigation by per¬
sons

free from

preconceptions of¬
opportunity for important
public service by one of the great
fers

foundations.

(19) Do

Reserve
with

policies,
together
productive capacity ex¬
in

cesses

sult

growing

some

lines, will

least

stabilization

re¬

temporary
commodity

prices?
no

Reserve

doubt that the
can

stabilize

prices if it is willing to create
enough unemployment and to re¬
tard

the

increase

production

sufficiently long and sufficiently
drastically.
But rising costs are
not
very, resoonsive
to
credit
restraint.
in

industry

high and growing rate of tech¬
nological research and we would

not

tolerate- efforts

ment to

yet

govern¬

discourage reseach.

most

duce

research

sellers'

tends

markets

And

pro¬

because

it"

increases the demand for goods
before it increases the
capacity to

produce goods.
Other conditions
that make for upward pressure on

prices

are politically popular. Full
employment - and
strong
trade

unions

are

Upward

examples.
pressure

•

prices

is
aggravated by the farm policy
which causes the government to
on

billions each year trying
keep up the price of foods and
fibers, and by 7 the* tax system

which leads the government to sub¬

sidize

Credit

restraint

began

moderate way early in 1955,

heavily

wage

concessions

by employers.
Hence, although
the
United
States
has
not
"adopted" gradual inflation as a
of

way

(A) There is
Federal

capacity

increase the demand for goods
by
technological research. -,We desire

spend

believe that Federal

you

life,

the

country

not

prepared to remove the condition:
that produce gradual inflation.
I
think that the

country

make

tard
does

compromise..

willing to do

some

ready
It

things to

is
re¬

inflation, but not others. If
not
want
inflation,
bu'

neither
cost

does it wish to pay the
preventing inflation.
We
stop inflation by insisting

could

and
was
steadily
stiffened
throughout that year and through¬
out 1956. Nevertheless, while out¬
put per manhour outside of agri¬

creases

culture

rose

by less than half of

consumers

Certainly, the creeping type of
inflation

scarce.

that

have

and

If the Democrats take

inflation

interesting and
crucial
question
of how much
pressure the public is willing to
put on employers to resist rais¬
ing wages faster than the gain
in prouuctivity.
Up to now, tne
public has put little pressure on
employers to hold the line on
wages.
Only with much more
effective bargaining by employ¬

credit

In order to capture
raised
by the

the

are

the

very strongly that no employer
except in unusual circumstances

grant wage and fringe benefit in
of more than about
2.5%

year—about half the

wage

in¬

will

remain at

galloping

inflation

may wen come wncn

because

take

the

tolerate

over,

country

indefinitely

it will
refuses

policy
of keeping credit scarce, not be¬
the

cause

instrument

credit

control cannot keep inflation at a

But the overdoing of credit

creep.

restraint
the

ates

the present

danger that at

time

cre¬

some

fu¬

Congress will
insist
undue relaxing of credit.

upon an

(12)

date

ture

This type of inflation (wagerise

motivated)

others,

saddles

with^ increased

unlike

the

corporations
costs and

en-

larged financial requirements,
and at the

same

time makes it

increasingly difficult for them
to

over

avoid

margins.
such

narrowing

profit

Is it your belief that

conditions will

act

damper

tures,

will the need to off¬

set

creep;

large, creeping inflation
will give way to galloping. infla¬

But

Democrats

be
to

hourly compensation of employees the
government, in 1960, they will
down
to
the average long-run
undoubtedly insist upon some in¬
growth in output per manhour' crease in the
availability of credit.
which seems to be about 2.5% per
If the increase in credit is small,

checked, upon who is affected by
the scarcity of credit and how.
Its activities also raise important

ence

out

likely to have is .not particularly
dangerous and is not particularly
rise
in productivity.
This hap¬ difficult to
keep at a creepirig
pened in spite of credit restraint rate. It does not feed
upon itself.
and at a time when credit re¬
The difficulties of keeping it at a
straint was quite successfully and
•creeping rate are political, not
substantially retarding the growth economic.
Keeping inflation at
of the economy. I do not believe
a creep is readily accomplished
by
that prices can be stabilized with
keeping
credit
scarce
so - that
unemployment as low as 4% un-.
prices do not rise faster than
less the public builds up a very
costs. It remains to be seen, how¬
insistent demand that employers
ever, how long it will be polit¬
take indefinitely long strikes in
ically
possible
to' keep
credit

life?"

restraint

long

than 10 times as fast as the

—more

good and the bad- effects of credit
restraint, ' upon
the
degree
to
which the rise in production in¬
stead
of
the rise
in prices
is

questions,

and

1955

between

cent

per

that they take

demand

and expensive, strikes rather than

tion.

comes, as

„;

rising

capital

wage

costs through

greater efficiency
than

WHAT

expendi¬

countervailing influence?

Thursday, October 10, 1957

...

(A)

The economy has been in
cost-price
squeeze
for : some
years. .This fact is indicated by'

the
as

failure

whole

during
In

1948 to
corporate profits

1948

taxes

profits
appreciably

corporate
grow

period

the

were

$20.3

1956.
afier

billion; in 1956

In the
meantime, both corporate invest¬

they

were

$21.0

billion.

ment in

plant and equipment,and
corporate sales have risen sub¬
stantially.
.Hence, profits as a
return

investment

and

in
1956 than eight years earlier. The
purchasing power. of ^ the total
profits of all corporations in 1956
percentage

was

over

1948.

of sales were

15% less than it

less

was

the speculator
companies,. few
groups in
the community have
lost as much economic ground in
the last eight years as the owners
of American corporations.
\
success

But

not

spite

the

some

cost-price

squeeze

has

yet brought about a drop

in the volume of capital

MAKES

expendi-

CHESS

Volume 186

Number 5680

..The Commercial and Financial Chronicle

(1591)
tures.

One

for this is that

reason

our "
technological
research
laboratories continues to rise, capital expenditures will continue to

electric

and

utilities.

gas

er.

increase.

large part of the total of capital
expenditures is made by a few
highly, prosperous industries* such
as the petroleum industry and the

that

(13)

Fur¬

thermore, with technological ad¬
vance as rapid as It
is, new cap¬

rate

of return

not

been

particularly prosperous,
'railroads have had ,no
#

but

the/

Would

other technological improvements.

short,' the rate1 of capital
expenditure will be determined
by the marginal rate of return on

-—

new

rage

investments, not by5 the
return

aver-

investments.

all

(A)
farmer

will

has

"turned

continue

ture

new-.' products
6

the

corner."'

cost

their

country in the world has

ever

valorization operation
the scale that the United States
a

has

attempted
to
support
the
prices of a few farm products in
the

last

few

years.

country

If the output

create

people

leaving it.

un¬

of agricul¬

out

move

much faster than

been

chronic

capacity in agriculture

they have

The government

take office in 1960, they will un¬
doubtedly wish to be rid of the

burden of

buying large

crop

sur¬

pluses at high prices and will put
an

end

the business.

But they

sure

(14)

Are

reasonably cheerful

you

about the economic outlook for

the rest of the world? Would
inflation
control
steps
by
-

other

countries

tend to have

deflationary effect here?

(A)

On the whole, the economic

production. Of course, the
involved are terrific for

wastes

many of the development schemes

ill-planned

are

and

there

great
shortage
of
experienced
administrative and technical per¬

sonnel, but it is less wasteful to
attempt to increase productive
capacity than to be content with

stagnation,

as was
much of
world in the period from 1900
the Second World War.

ences

the

countries

C 7? f)
Ijr

ILROAD

W 9
rr,

°*ie

a series (e^nS whiat Chesapeake and Ohio
doing to make this a bigger, better railroad.

the
un¬

success

different

handling their

eco¬

With

Webber-Simpson

Simpson

Company,

208

Miller

William

kins, R.

Charlotte,
following

Dickson & Co., Inc.,
N. C., has made the
nominations
for
of¬

ficers and members of the Execu¬
tive
Committee:

Chairman, W.
Nisbet, Jr., Interstate Securi¬

Olin

ties

Corp., Charlotte, N. C.; ViceChairman, Harvey B. Gram, Jr.,
Johnston, Lemon & Co., Washing¬
ton, D. C.; Vice-Chairman, Joseph
J.
Muldowney, Scott & Stringfellow, Richmond, Va.; SecretaryTreasurer, F. Barton Harvey, Alex.
Brown & Sons,
Baltimore, Md.
In

addition

the

offi¬

above

the

committee has nomi¬
nated for election to the
Execu¬
tive Committee: Charles R.
Vance,

Vance

CHICAGO, 111. —Albert O.
Wieghart is now with WebberSouth

Salle Street, members of the
Midwest Stock Exchange. In the
past he was with Link, Gorman,

crystal ball

Group, Investment Bank¬

Association of America will
hold its 37th annual
meeting Oct.
11-13, 1957, at The Greenbrier,
White Sulphur
Springs, W. Va.
A committee
consisting of: W.
Carroll
Mead,
ers

cers,

nomic affairs.

(Special to The Financial Chronicle)

Chessie's

BALTIMORE, Md.—The South¬
eastern

Chairman, Mead
Co., Baltimore, Md.J
Mackall, Mackall &
time in the history of the world
Coe., Washington, D. C.; John C.
when there has been such a broad
Hagan, Jr., Mason-Hagan, Inc.,
and
universal
striving for in¬ Richmond, Va.; J.
Murrey At¬
creased
outlook for the rest of the world
is good. There has never been a

And,
of course, one cannot avoid
being
impressed with the wide differ¬
'1

Of IBA to Meet

handouts will take, but I am
that they will be large.

til

Southeastern Group

venture to predict what form the
new

living.

has

less

processes.

pro-

also
desire
to
give large
handouts to the farmers. I do not

them¬

groups

poured billions into an at¬
technological revolution that
is rapidly increasing the produc- ' tempt to keep up the prices of
the products of a small segment
tivity of agriculture is still going
of the entire
community, as " we
on, and will continue to go on. It
have done.
When the Democrats

research
new

support

The

excess

and

raise the

No, I do not think that the

Thus, the rate of capital expenditure will be largely determined

develops

modity

price

commodity

will

developing divisions,
city people are gradually
catching on to the fact that they
are being heavily taxed
in order

gram?

hope
price

and the

the

are

attempted

by the rate at which technological

selves

corner?"

comment

you

out fast¬

move

reason

ago.: Farm

years

that the farm¬
the

farm

longer range outlook for agri¬
culture and for the farm com-

diesel locomotives and various

you

"turned

has

choice but to spend huge amounts,
on

while commodities other

suggest to

industry as
a whole
is low. For example, the.
railroad industry as a .whole has

the

good

program
will
soon
be
dropped—as it should have been

remained stationary. Does this

the

support

than farm products and foods

ital expenditures may pay a high
rate of return even though the

help them

There

Farm commodity prices edged
higher in the first half of this
year,

needs to

Peck & Co.

Securities Corp., Greens¬
boro, N. C. (for three-year term);
Charles
H.
Pinkerton,
Baker,
Watts & Co., Baltimore, Md.
(for
one-year
term);
Roderick
D.
Moore,
Branch,
Cabell
&
Co.,
Richmond, Va., Ex-Officio.; Mark
L. Sullivan,
Auchincloss, Parker
& Redpath,
Washington, D. C.,

Ex-Officio.
Robert H.

Appointed Directors

Everybody is interested in looking into the

will

iiture. In the modern business world it is

all-time record.

)hly

of interest, but

a matter

necessity.
<t

•

■.

economic

Another

''
\

year at

long-range planning is particularly important
Chesapeake and Ohio. You don't build
iers, yards, and bridges overnight. You can't
Sick up cars and locomotives at the hardware

Toledo where Great Lakes vessels will
and

league

with the

future", C & O has just started an¬
other huge pier there to handle the
growing
lake coal movement.
V

These

>rdered

shipping record is in prospect this

load about 17,000,000 tons at Chesapeake
Ohio's three coal piers. Keeping "in

'tore.

through this port, establishing

things have to be planned and
years in advance.

•.

When the charts first

pointed to an upward
trend in ore imports, C & O blueprinted a bulk
cargo pier with an eight million ton annual
capacity. This new facility at Newport News
has just begun operation.
^ ;
/

lor example, the increasing volume of coal

xported through the port of Newport News
as been possible because
plans and decisions
Vere made more than twa years ago to enlarge
& O's" coal'handling facilities there. This
ear, more than 23,000,000 tons of export coal

tion, glass,. paper, coal and many othersChesapeake and Ohio anticipates their needs
and provides them-with the freight cars/ loco¬
motives, signal systems, tracks and yard facili¬
needed* for

ties

service.
.

♦

the

best

transportation

:
•

It is this

same

••

thinking ahead that
railroad to install a large

scale electronic computer system. First
a

with
system-wide, all-teletype Car Location In¬

formation Center—CLIC for short. First with
the electronic hot box detector.

in C&O's headquarters, called tin

financial

weather

Thinking in tune with the future is one of the
things that keeps Chessie's railroad growing

bureau," records daily, weekly,

'onthly and yearly accomplishments and projects

and going.

■

•

and

Jack

Ostrow

have

appointed

di¬

rectors

•

been

the

Westheimer

National

Telefilm

Associates, Inc.

With Stern,

the

Investment Bankers Associa¬

tion of

from

Coast

New

York

and

Joins J. Logan Co.

Pacific

LOS
&

Co.,

Mr.

Chessie portfolio of pictures

—

Chessie,

lesapeake and Ohio

3809 TERMINAL TOWER,

CLEVELAND t, OHIO

Beverly Boulevard.
previously with

was

McCormick & Co. and Daniel D.
Weston & Co.

Congress would amend the Employment
make stabilization of the cost of
living
the foremost Federal economic
policy then, according to the '
Guaranty Trust, our Government's hand will be strengthened
in cutting expenditures in order to lessen
inflationary pressure.
Act of 1946

Congress will have an oppor¬
tunity in the next session to apply
an

indirect brake

the upward

the Federal
Government, according to Guar¬
anty Trust Company of New York.
The bank

possible

sees

this

as one

of the

benefits

in the pending
Employment Act
of 1946 by declaring stabilization
of the cost of living to be a pri¬
mary
aim of Federal economic
policy.
bill to amend the

"Such

could have

declaration
a

most

policy

salutary effect

in both Congressional and Execu¬
tive circles where day-to-day ac¬
omy

and

between

waver

econ¬

extravagance," accord¬
The
Guaranty Survey,
economic

and

business

served, it might equally well tip
the

scales

Federal

"At

have

little

effect

The
ment

bank

our

own

times

political opposition.

the

least, the Survey

very

policy but also as an
tendency arising from
interpretations of the
Employment Act itself."
inherent

extreme

Such

mandate, if enacted by

Congress, would not infringe
the

Federal

dence,

upon

Reserve's

indepen¬
Guaranty noted, for these
•'

reasons:

•

■

"First, the mandate would not
be directed to the Federal Reserve
alone

but

all

agencies

the

government. It would be a decla¬
ration of national policy, which
Federal

Reserve, along with
agencies, would be bound

to support by means to be deter¬
mined by its own.judgment.

"Second,
integral

currency

stability is

part of any sane gov¬

said

that

establish¬

policy
might well strengthen the hand of
foreign
that
are
governments
now

looks like

los¬

ing fight against inflationary pres¬
sure.
Moreover, the bank ob¬

ernmental

policy,

to general

of the objective as a

waging what

future

deliberate

upon

monetary and credit policy, since
the Federal Reserve is already do¬
ing its utmost to achieve currency

favor

commented, "it would discredit
'creeping' inflation, not only as a

the

Adoption of the amendment,
Guaranty said, would presumably

Reserve at

of strong

stability.

Railway

2115

Stow

other

family, and Peake, Chessie's Old Man? Write to:

ANGELES, Calif .—William

R. Stow, Jr., is now with J. Logan

Amending Employment Acl of 1946

review.

Chessie's

Butler

meeting.

If the next session of

ing
to
monthly

Would you

meeting on Sat¬
United States
Marshall

(Special to Th* Financial Chronicle)

Stock Exchanges.

Favors

John

Maryland will address the

Frank, Meyer

ANGELES, Calif.—Carole
has joined the staff
of Stern, Frank, Meyer &
Fox,
325 West Eighth Street, members
the

morning.

Senator
dinner

Horowitz

business

urday

LOS

America, will speak briefly

the

(Special to The Financial Chronicle)

tion tends to

\iure trends for management planning.
\ \

Cincinnati,

spending pattern

habit of

made C & O the first

room,

By charting trends in the great industries it
serves—automobile, chemical, steel, construc¬

yds chart

Westheimer,

Co.,

Craft, Chase Interna¬
Corporation, President of

tional

B. Gerald Cantor, Cantor, Fitz¬
gerald & Co., Inc., Beverly Hills;
Robert

not

move

prosperity, welfare and

progress,
as

indispensable

that it must be regarded

implicit

objective

any

public agency dedicated to these
aims.
a

Even

full

employment,

continuing goal, depends upon

stable money."

prevent the public from obtaining
the necessities of life. It is a legal

Continued from first page

Ail

permit to paralyze transportation,
to close public utilities, to stop

Open Letter to

production of defense materials in
time of war, to prevent families
from burying their dead. Strikes
are
almost
universally
accom¬

President Eisenhower
ers

gets what it is

worth in pro¬

Left alone, the industrial
system distributes workers into
those lines where they are most

by legislatures and seldom
punished by the courts. Thus a
by strike is a legal permit to do;

Labor Secretary's Role
There

are

two major means

which wages can be increased by
productive and earn the highest force.
One is monopoly, which
possible wages.;■> ■ can be established only by a union.
(e) Heal wages automatically
A union forces a union shop.
It
rise with improved efficiency of
then passes rules which prevent
equipment. Lower prices increase
new
workers from entering the
sales. Withincreased output there
union. The need for the product
is larger demand for labor. Wages
makes it possible to extort un¬
rise, while lower costs give higher
natural wages.
Still further ex¬
real incomes to all the people, in¬
tortion is achieved by restrictions
cluding all wage earners.
■.
on output per worker, prevention
(f) If enterprise is free the in¬
of introduction of improved equip¬
dustrial system creates the high¬
For 50
est possible production-, the largest ment, and shorter hours.
possible total of wages, and the years it has been the policy of the
craft
unions
in
the American
fairest distribution of wages.
These are the simple, indisput¬ Federation of Labor to establish

When a a closed or union shop and then
workers are force fantastic wage rates by every
licensed by law to .set their .wages conceivable device. These unions
have
been
a
major injury
to
by force, the automatic process of
economic betterment is crippled. American economic progress. The
The higher wages, not earned by peculiarly indefensible union shop
is warmly supported by your Sec¬
productivity,, cause an unnatural
increase in costs and in prices. retary of Labor.
Not many unions have as yet
Sales are less than they 'would
have
than

about wages.

minority: of

been.
it

pliers i to

Employment

would

been.

have

results

less
Sup¬

industry

affected

the

employment.

lose sales and reduce

raised

stranglehold

been able to obtain a

through the union shop, and the

major instrument of forced wage
increases is the strike. A strike is
a

license

legal

Federal law to

granted

our

union—a license

injury to innocent persons and to
make war on the public. There is
no excuse, economic or moral, for
a strike for higher wages.
Critiques Strike Arguments
For

net

wages

people have been bombarded

can

with

systematic, organized propa¬
ganda in defense of strikes. There
are
four
arguments
that
arc

All four

ceaselessly propagated.
false.

are

Here they are:

1928
„

We Ojjer

COMPREI1ENSIVE INVESTMENT

(1) "There is an inherent right
to strike," This is false. There is
no such right.
The right of every
worker to quit his job, to "re¬
sign," is one of the basic liberties
of mankind, a precious thing. The
so-called right to strike js an en¬
tirely different' thing."1 It' is a legal
right to inflict injury on an em¬
ployer with impunity, while forc¬
ing him to hold the job for the
employee. It is more than this.
It is a legal license to force an
employer to continue the striker's
employment on whatever terms
the strike has beaten out of him.
This

basic

violation

one

the

principles

ployees, and state laws, as in New
York, prohibit strikes by state
employees.
(2) "Only by striking can work¬
ers
obtain fair wages."
This is
sheer

not

find

unions.

to strike.

OF BONDS AND STOCKS
including

FOREIGN ISSUES
We

Particularly Adapted to Service Firms

are

With Retail Distribution

Yeur

Inquiries Solicited

120

FOX

CO., INC.

BROADWAY, NEW YORK 5, N. Y.
Teletypes

Telephone

NY 1-944 & NY 1-945

REctor 2-7760

unions

many

unnecessary

The wages of non-union
have

were

unions.
to

get

gone

forced increases by

Strikes

are

only

necessary

unearned wages.

(3)

employers make large
profits it is proper for unions to
take
a
part of the profits by
force."
evil.

This is not

Industrial

This

only false 'but

progress

improved

for

profits.

time

comes

productivity.
produces

large

The profits are ploughed

back, increasing production, low¬
ering prices, and raising wages.
Profits are necessary to the life
of the economy. They belong to
the owners of enterprise, but these
owners get only a small part, per¬
haps 2% on the average on their
investmenfVSfter corporation and
personal income taxes. Much the

largest part of profits, about 70%
in various taxes, goes to the gov¬

Specialists in
BANK and INSURANCE

ernment.

replace old

proves and real wages go up.

confiscation
unions

STOCKS

The rest

is re-invested,
equipment and to
expand production. It is by this
process
that
the
economy
im¬

real
of

by labor
progress, reduces

injures

wages,

The

profits

reduces

government,

the

and

revenue

destroys

(4) "Unions have greatly raised
the

Company

BROADWAY, NEW YORK 4, N. Y.

ing

They

Direct
BALTIMORE

—

BOSTON

•

—

Teletype: NY 1-3430

unions

have

HARTFORD:

all

and
Enterprise 7846

done

would

group

there

their

raised

levels, at the

other wage

wages

Telephone

have

American

noth¬

wages

secutive

never

June

"•*

■

tion

Paymts. to

30, J June 28,

1957

June 30,

1957

Great American Indemnity

Company

0.80

Diversified insurance

4.2

0.45

1514

3.0

1.60

;r*

•

Works
and engineers

Great Southern Life Ins. Co. *32
accident and health

Life,

35%

insurance

Great Lakes Engineering

5.0
*

•*.

1.50

Diversified

16
"

Great Amer. Ins. Co. (N.Y.)

2.1
V

/•

Great West Life Assurance
Co.

(Winnipeg)
; -

*20

slippers

g4.50

*33

distribution

Leather

5.6

1.00

tanning

Corp.

4.3

....

Griess-Pfleger Tanning Co— *16
Grinnell

1.2

"80

•

»..

Green Giant Co., Class B
canning

302

(Daniel) Co

House

3.50

Life, accident and. health

Green

12%

0.75

5.9
^

4.00

134

3.0

Sprinklers & plumbing equipment

:■

•

Guarantee Co. of North

America

(Montreal)

Fidelity and surety bonds"

•

Guaranty Trust Co. (N7 Y.)—"
Insurance Co. "(Dallas)
and

casualty

„

5.4 r

2.6

.."

0.50

26%

1.80

0.70

35%

2.0

and

25
19

(Jacksonville, Fla.)

"1.50^

39%

accident

Gustin-Bacon Mfg. Co
Glass

;64%'

jT-83

insurance '

Gulf Life Insurance Co.
Life

5.3

•

05.^:13.47

Gulf

Fire

18.00' 340

insulation

fibre

products

•

Hagan Chemical and Controls,
Inc.

„

chemicals

treatment

Water

Hajoca Corp.

-J

„

—w——

___

.....

■

3.8

...

38%

1.50

;

3.9

Building supplies

Halle Bros.
Ohio

Photo

-I

0.91
-

processes

■

•

f0.98

3.3

1.4

;

"18%

...

•

products

'27%
-

•

0.80

—_

steel

and

copying

papers,

Hamilton Mfg.
Wood

merchandise distributors

Haloid Co.

5.4

.»

•

Hamilton National Bank

(Chattanooga, Tenn.)
-

Producer,

refiner

petroleum products

(P. H.)

Underwear

Hanna

marketer

25 '
28

3.2

330
49%

2.4
1.2

of
'

•

315

(Knoxville, Tenn.)
Hancock Oil Co., Class B—
Hanes

10.00

.8.00,
0.60

*52

Hamilton National Bank

Knitting Co._

■

•

2.00

5.3

3.00

*24

139

2.2

and sportswear

(M. A.), Class B

Coal, iron, steel

Hanover Bank (The) (N. Y.)
Hanover Fire Insurance Co.-

105

fl.92

104

41%

2.00

5.4

Multiple line insurance

Hanson

Winkle

Van

*14

fO-19

2.5

Electroplating and polishing
equipment

'Harris Tr. & Svgs. Bk. (Chic.)

49.

Harrisburg Hotel Co

445

3.00

2.7

8.6

Hotel

•.

Hart-Carter Co
Grain

12.00

handling equipment

Hartford Fire

1.00

Insurance

11
-

•

9.1
.

3.00

151%

Hartford Gas Co.

107

2.00

37%

Hartford Natl .Bank & Trust

125

1.375

30%

2.50

3.1

1.95

45%

4.3

1.26

21%

5.7

Diversified

Hartford Steam
Boiler

2.0

insurance

and

Boiler

Insp.

5.4
4.5

machinery insurance

Harvard Trust (Cambridge).
Haverhill Gas Co

See under Merrimack-Essex
Electric

Co.

Operates in New England

Haverhill
Sale

Gas

1.23

21%

5.7

1.25

6.0

0.20

7.3

fo.48

26%

1.8

2.50

6.6

16%

6.2

29%

6.8

gas

Haverty Furniture Cos
Holding

company

Heidelberg Brewing Co
Beer

and

ale

Hercules Cement Corp
Cement

manufacturing

...

Hershey Creamery
Produces dairy

products ia

Pennsylvania

Hettrick Manufacturing Co.-

1.00

2.00

Canvas products

Heywood-Wakefield Co.

Maker of furniture

Hibernia National Bank

(New Orleans)

2.00

2.5

fl.19

4.6

3.00

7.3

Higbee Co.

1.20

27%

4.3

0.75

9.1

2.00

39%

5.0
*

0.51

13.2

Department store

Hines

(Edward) Lumber Co.
logging and processing

Holyoke Water Power Co
Electric and hydraulic power,
industrial steam and real estate

Home Dairy

Operation of food

14
markets, cafe-

terias and bakeries

Home Insurance Co.

(N. Y.)

83
'

Property insurance

Home

higher

been

12 Mos. to

Divs. Paid

Quota-

expense

earners.

Continued

Extras for

Years Cash

Telephone and Tele¬
graph Company of Virginia

Total

today,

Local

strike

page

ana

long

distance

phone

service

rates would be fairer,

had

Appro*.
% Yield
Based on

Including

of the sort. A few powerful

to abnormal

Telephone: DIgby 4-2420

the

wages

worker."

Edwin L Tatro
50

page

Cash DIvs.

Timber

forced wage increases.

■.

....

Thursday, October 10,1957.

No. Con-

the

marginal enterprise unable to pay

•

...

Where Trading Starts and Never Ceases

Penn-Harris

"If

from

can

steadily
and rapidly, although their real
wages would be much higher if
there

PUBLIC UTILITY—RAILROAD—INDUSTRIAL

And

impossible

workers

ALL CLASSES

Strikes

nonsense.

two-thirds of all wage earners are

SERVICE

DEALER

em¬

maintained only by unions. About

AND

Fabulous Over-The-Counter Market:

Vegetable

prohibits strikes by Federal

Established

from

Shipbuilders
-

half-century the Ameri¬

of justice, the
by force are (1) ah unnatural rise to stop production; to bankrupt an principle that a contract obtained
by force or duress is void. • The
in the cost of living for all the enterprise, to destroy the savings
right to strike is proclaimed in
public, (2) .reduced employment of investors, to throw thousands the face of the fact that there is
of workers out of work, and to no such
in the affected industry, and (3)
right. The Federal law

The

Continued

nored

(d)

able facts

•

panied by illegal picketing, illegal
increased
competition for jobs boycotts, violence, and crime. This
outside the affected industry.
violence is almost completely ig¬

duction, no more, no less.

small

The Commercial and Financial Chronicle

(1592)

Details

not complete

to possible longer record,

t Adjusted for stock dividends, splits, etc.
g Dividends include

$4.00 extra payment made

Dec.

15, 1956,

Number 5680... The Commercial and Financial Chronicle

Volume 186
j

—

,»•

—

•

• ■

• •

•

Fabulous Over-The-Counter Market:
Where Trading Starts and

Extras for
June

tion

30,

1957

Divs. Paid

1.10

151/2

0.60

10%

5.5

Vulnerable Basic Industries
If

19.5

15.00

Vacuum

New York

Inc.__

*Connecticut

public

utility
electric

and

gas

Southern Texas

5oy2

5.2

1.40

2IV2

.6.5

force

un¬

1.50

36%

4.1

beat

un¬

•

1.65

3.4

fl.95

4.1

country

1.40

-1 32

4.4

Manufactures
industrial

papermakers' felts,
fabrics, precision in-

struments

and

control

devices

Idaho First Natl. Bk. (Boise)

Imperial Paper & Color Corp.
of

Manufacturer

wallpaper

and

f0.66
1.70

........

3be,2.1
r,86%Bb. 4.7 ;

pigment colors

the

Imperial Sugar Co
•

Z.dU

1.00

6.8

18%

Sugar refining

Indiana Gas & Water Co., Inc.
Gas and

water

employment

Indiana Telephone Corp

unions

extort

can

endless

They consistently
policy of forcing wages

carried

beyond

the

duced

point
The

employment.

prises

these

re¬

enter¬
industries

basis

termined to inflict such

0.50

3.1

0.75

18%

4.1

2.00

5.9

*30

4.00

Industrial Natl. Bank (Prov.)al65

f 1.29

333/B
27%

injury

3.6

Water

.—

Operating water utility

(New York)
&

4.9

publishers

and

the cost

Provides

Struction

and

cranes,

sale

con-

hour
37

1.40

4.1

0.80

14%

5.6

Operating public utility

1.50

4.2

has

week

minority of

progressed.

and

moderate

50-week

amount

tries

receive

fits,"

paid

large

"fringe

vacations,

bene¬

0.50

5.1

insurance

and

Service

2.20

8.4

work.

The

1956.

They

15%

5.3

20%"

6.2

18 1

0.80

1.28

what

supplier

costs

figures
are

for

are

groups

lions

are

another.

without

are

extensive

his

labor,

common

The

training,

car- costs, more, his rent
higher, his Federal income tax
It has become a contest

edu¬

skill.

-worker gets
; A
little

increase.

is larger.
'

cation,

steel

unearned

Mil¬ later his

skilled.

highly

them

Interested.
in any

...

stock

latest

Continued

page

these pages?

prices, quotes, or information,

simply contact—

Trading Department

Merrill Lynch, Pierce, Fenner

& Beam

NEW YORK 5, N.

70 PINE STREET

Offices in 112 Cities

year's

Wage

Bricklayers

Electricity supplier

$3.'62

1.70

31%

5.3

Ivey (J. B.)

1.00

18%

5.5

Department store chain

Gas

Corp

$1,080

$8,320'

6,Q"0

90 9

5,960

894

0.03

0.4

846

Including predecessors.

Mining— 2.98

(newspaper)

2.82

;
.

•" v

5,320

798

6,116

2.52

5,040

756

5,796

machinery 2.28
Mfgrs
2.05

4,560

684

COUNTER

SECURITIES

5,244

•

Employees
1.57
Retail Trade- 1.55

4,100

615
471

Underwriters and Distributors

4,715

-3.140

3,611

•'»

page 38

.3,100

465

3,565

Textiles

Continued

Bank

THE

6,486

2.66

Autos

All

" Details not complete as to possible longer record.

t Adjusted for stock dividends, splits, etc.

Printing

All

Operating public utility

6,854

5,640

6,9^9

Coal

Steel

OVER

Total

MARKETS

Cost

Cost
$7,240

All B.MiVing__

PRIMARY

higher now, espe¬

1.50

3,000

450

3,450

Laundries

1.07

2,140

321

2,461

Members New York Stock Exchange

Telephone
Corporate Teletype: NY 1-865

Whitehall
•

We have direct wires to

Asheville

Albany

Burlincton

Boston

Fayetteville
Greenville

Jopt

Nashville

St. Louis

3-7600

Municipal Teletype: NY 1-1691
the folloiving cities:

Baltimore
Beaumont
Charlotte
Chicago

Cot umbia

Cleveland

Fullerton
Houston

Beverly Hills
,

■

Cincinnati

Dallas
Denver
r™?"
Galveston
h Grand Rapids
Indianapolis
Jackson, Miss.

Kansas City
Los Angeles
Louisville
Muskogee
New Orleans
Philadelphia - Rock Island
Kome
St. Paul

San Francisco
Santa Ana
Utica
Washington
.

Spartanburg

and mag¬

These great unions prey on one

monopoly.

Some of the workers in those top

mostly for

Hourly Annual Benefits
'

Irving Trust Co. (N. Y.)

and

the; death

azines.

beaten out of enter¬

strikes

cially in steel.

shows
26

mort¬

Co.

Iowa Southern Utilities Co.__

of newspapers

table

gages

Jacksonville

were

prise

:r' factor

they are set down as 15%
of wages for all groups. The table

*31

Electricity

They

irai

productivity. hundreds

not earned by

Fringe ben^fi c v rv
widely. They are
larger for the
high wage workers, but in the

4.2

chain

estate,

The wages in the top six groups
were

insurance,

26%

Investors Mortgage Company
Real

hours

groups

have averaged 37 to 39 per week.

others.

1.10

interests

Iowa Public

became

work.

hydro-electric

Interstate Co.
Restaurant

four

year;

—

unemployment
these

even

40-

work, workers in the basic indus¬

and

Reinsurance—multiple lines
trust

until

chronic. But the figures show that

For

In addition to wages paid for this

Inter-Mountain Telephone

Investment

year worker pays in the cities.
a huge increase in popula¬
tion, with the government sub¬
sidizing houses, we have a slump
in house building. Why?
A 40%
increase ip the post.of a house in
10
years/ Thef; building
trades
unions are merciless exploiters of
the American working man. The
wages of printers have
been a
a

With

Income

A table will show you how far
workers

insurance

International Holdings, Ltd._

the public.

Labor

this exploitation by

shovels, etc.

Inter-Ocean Reinsurance Co.

longer

Data

Insurance Co. of the State of
Diversified

Averaere

Savings, trust and mortgages

Insley Manufacturing Corp._
Manufacture

reduced. There¬

was

Jn the table you find one of the
major causes of rslums in Amer¬
ica, of the cruel rents the $2,500

resist. They simply surrender and
pass

Trust

others have
learned the lesson. Steel and auto
makers

Industrial Bank of Commerce

>■

until

wages

wage-

and Kohler and many

Industrial Mortgage
Co. (Ontario)

stranglehold

any resisting enterprise and on
the country
that the enterprise
must
surrender.
Westinghouse

3.9

1.00

Operating public utility

wage
increases create
price spiral of inflation.

and

cannot resist. The unions have de¬

Indianapolis

Steel Corporation have gone from
100 to 204.' In the end unearned

wage increases.

prices,
then
striking
again. In coal mining it has been

Second Table Starting on Page 51.

supplies the steel en¬
terprises buy.
In the past
10
the labor costs- of the U. S.

years

"homes/and. buildings..Here

level

Payers From 5 to 10 Years Appear in the

cost of the

As the building
the
printers

more.

unions

In. steel, for example,

compounds itself in: the increased

of
40

The Depart¬

industry they raised

oil,

railways,;'' machinery,

Over-The-Counter Consecutive Cash Dividend

some

work

3.9

|2.40

not

weeks.

unions obtained a

just short of reduction of employ¬
ment, waiting until the critical
need for the product forces a new

Indiana National Bank of

Indianapolis

The

5.4

utility

nearly

entire economy, raising the price
of
every
commodity. : It even

are

tion cannot live without coal,

printing,
autos,

chief : of
upon they "spread the work," by
construction, shortening hours, restricting out¬
mining, transportation, printing, put,
preventing new processes, or
and the manufacture of
steel, ma¬ keeping out new members.
The
chinery, and automobiles. The na¬ wages of coal miners were forced
these industries

Huyck (F. C.) & Sons

„

depends.

week

trade

industry there is almost

and food products

beginning.

■

objected that

workers

immediately

the increased price resulting from
increased cost permeates the

group in the list except the top
four has been working 40 hours

limit. This is in the basic in¬
dustries on which the life of the

Confection

men.

adds

the

ment of Labor reports that every

Jtiii-

Huston (Tom) Peanut Co

It will be

$20,000

Labor

crease

New York motion

camera

hours

few rich and power¬
ful unions. In most of the union
industries economic law prevents

area

wages of

some

these

ing prices of the product would
destroy the market. But in one

utility

for

picture

Huntington National Bank of
;
Columbus (Ohio)

reported

enterprise is

body.
much less injury

unearned

6% to total Costs: This is only the

the
wage rates
get much less.
Union extortion reaches its peak

unions

extortionate wage increases.

com¬

Houston Natural Gas Corp.—
'

;2.65

could

But the power
earned wages out of

Syracuse, Inc

were

tem.
3.7

,490

confined to

606 rooms

pany,

18.00

7.4

28%

City

Housatonic Public Serv. Co.,
,

2.10

unions

increases, they would de¬
stroy the American economic sys¬

cleaners

Hotel Barbizon,
Hotel

workers

all

earned

Ropes and twine

Hoover Co., Class B——

all

and

enor¬

economic

56% of all costs. A 10% wage in¬

averages. Thousands of
the top get much more;

are

malignant

are

the

wage
increases.
Department says that
labor costs in production average

The

millions of those at-the bottom of

chain

Hooven & Allison Co

those

7.1

Inc

Drugs,

Indiana drug

These

have

strikes

They

Even so, they do

President Eisenhower
for higher wages. Unions
lowered total wages.

costs

wounds,
than

Title insurance

Hook

Links Inflation to Wages

Open Letter to

June 30,
1957

28,

1957

Home Title Guaranty Co.
(Brooklyn, N. Y.)

Based or»
Paymts. to

QuotaJune

page

mous.

% Yield-

12 Mos. to

secutive

from

The

Approx.

Including
No. Con-

Continued

Never Ceases

Cash Divs.

Years Cash

(1593)

Seattle

The Commercial and Financial Chronicle... Thursday, October 10, 1957

(1594)

society, the

our

^Continued

non¬

of wage-earners,
retired pensioners,
the white collar classes, and gov¬
ernment employes. There is no ex¬

Open Letter to
President Eisenhower

the

old,

page

■ --

Where Trading Starts

Cash Divs.

Since publication of the report
bludgeon
from
its
than the other unions can^ there has been a wave of pub¬
licity about "wages in excess of
get from theirs. Today the union

get the most has

boss who can

greatest prestige and power.
Report

Reviews Recent

report by the Depart¬

A recent

issued at the order
* has
attracted
is a remark¬
able example of the use of lan¬
guage to conceal thought. The re¬
port undertakes to compare the

ment of Labor,

g r e s s,

o n

national attention. • It

in wages

increase
nine
the

standing

Congress

careful not to ask
indus-

was

report on individual
The Department

June 28,
1957

labor. A bricklayer

mak¬

plea to the union bosses to exer¬
cise some measure of decent mod¬
eration in their relentless war for

the
The
productivity of labor is arrived
at
by dividing the number of
worked in

into the
product, in

year

the

goods or services.
figures:
Output

sound.

analysis is un¬
union should force a

in wages,- causing»
25% increase in the price of the

50%
a

12fl
161 Vn

statistical

This

increase

product, the
hour" would

1'output

per

man-

increased 25%.Actually there would be no in¬
crease in productivity at all. The
whole concept of labor's produc¬
tivity is absurd. Production is a
joint product, of labor, capital,
land, and management. None the
less, this unsound and evasive re¬
port
how
as

has

some

wages

It shows

value.

have had

huge rise

compared with the returns in

income

the producers.

veals the

causes

minority

will merely

irresponsible

say

It re¬

competition, however high.
The
hope of the future is a rise of
wages so great that-grinding pov¬

erty will be eliminated.
Wages
set by force are a cause of pov¬
erty.
This, discussion can be summed

practice a minority of
given by law a license
to prey on the public. The result
is a forced wage increase for a
few, not earned by productivity.
Such wages reduce total' wages,
lower the standard of living, and
In

up.

workers

of the wage-price

create

chief

spiral.

Nothing mere, just that. There is
not one moral or economic ob¬

jection to this plan. Wages would
continue to rise, chiefly among the
lower-wage workers. Employers,
free to base wages on the value of
the

would

workers,

increases.

grant
make

voluntarily

would

Industry

great surge forward. The

tide

inflationary

would

not

halted, but it would be slowed..

unending inflation. The

victims

are

the

helpless

Your advisers will

They will not offer
objections. There are

economic
none.

will

They will tell you that it
cost the Republican Party
~

votes.

Properly presented to the
people,
the proposal

American

win

votes.

believe

not

of the American

people can be fooled indefinitely
by false propaganda.
A recent
showed

census

third

Stay
With Them

union

that

about

'Shoes

■

total

the

prohibit

members

oppose

•

■" ,*■

•

0.60

4.3,

Service

...

controls

L*;

•

.v "*

'•

■

21
.

' '

26%
-

" X

;

Supply Co.

4.3-

1.25

16%

7.6

1.00

41'

1.60

^ 31%

1.80

pole

equipment

-t

Julian & Kokenge Co.—___
Women's

population,
18
states
it. There are some 60

There

shoes

29
*

; •

Printing Co.__^_

;

4.3

•

Magazine printer

-Kahler

Corp.

5.1:

restaurant and laundry

Hotels,

operator

Kalamazoo Veg.

Parchm't Co.

and paper, specializing
food protection papers

35%

Pulp

...

Kanawha Valley Bank

♦

(Charleston, W. Va.)
City Fire & Marine

*72

'8.00

175

Kansas

Insurance

Co.

Kansas

30%

"6.1*

City Life Ins. Co

*33

7.00

1310 *

0.5:

life

Non-participating

Kansas

4.6.

1.875-

'Multiple-line insurance

City Title

Insurance

Company

2.50

50 "

5.0

1.70

35%

4.8
"

Title insurance and abstracts
of

title

Kansas-Neb. Natural Gas Co.
Natural

sion

gas

production, transmis-

distribution

and

Kearney (James R.) Corp
* "

1.00

15%

6.5..,

0.60

; 9%

6.3 /

1.60

->'34%

workers

who

hate

the

D'AVIGDOR COMPANY

dustry, and five million farmers,
five million pensioners.
But

and

this

Security Dealers Association

matter is

bigger than politics.

If strikes for higher wages

suspended at this time,

NEW YORK 5, N. Y.

are

Leader

dry cereals

Kendall Company (The)—_
i Surgical dressings, -elastic goods

•

Kellogg Co.'(Battle Creek>..

>4.6

17
•

2.00:.r .36%

5u5
*.-r

and textile specialties

Kendall

Refining Co

1.30

6.4

Producing, refining and marketing
of petroleum and its products

♦

carbide

Hard

39!/4

1.00

5.00

108

4.6

compositions,

1.75

5.0

1.28

25%

5.1

2,25

37y4

6.0

cut¬

ting tools and specialties

Kentucky Central Life & Ac¬
cident

Insurance

Non-participating life

Kentucky Stone Co
Crushed

stone

Kentucky Utilities

Electricity supplier

Kerite

(The)

Manufacture

Company
insulated

wire

and

cable
*

Details

not

t Adjusted

complete as to possible longer record,

for stock dividends, splits, etc.

not

we are go¬

ing to have a tragic depression.
Telephone WHitehall 4-3400

NEIL

CAROTHERS,
Dean Emeritus,

School

of Business

TITLE GUARANTEE

Administration,
Lehigh University.

AND TRUST COMPANY

1922

1957

Hogan & Rowan With

UNLISTED SECURITIES
SINCE

1922

CHARTERED

(NEW YORK) 1883 ^

Foster & Marshall
MEDFORD,
Marshall

have

Ore. — Foster
&
opened a branch

office at 38 South Central Avenue
with Melvin N.

INVITED

Rowan

Hogan and James

co-managers.

Both

formerly associated as prin¬
cipals of Hogan, Rowan & Co.

Title Insurance throughout New

Yorkf

were

JOHN J. O'KANE, JR. & CO.
PHILIP C.

KULLMAN, JR.

ROBERT

(1922-1951)

KULLMAN

—

JOHN J. O'KANE, JR.

MANAGING

(1922-1956)

Members New York Security Dealers Association

Broadway, New York 4, N. Y.

Phone—DIgby 4-6320

Teletype—NY 1-1525

New

Jersey,

Connecticut, Massachusetts,

Maine, Vermont and Georgia, and in other

Form

Whitmore, Bruce

PARTNER

WASHINGTON, D. C. — Whit¬
Bruce and Co. has ^een

more,

with

formed

necticut

securities
Bruce

offices at

Avenue

business.
a

1739

engage

D'.

Con¬

Donn

principal of the firm.

~'\r

2.5

Kennametal Inc.

overlords of labor who exploit in¬

INQUIRIES

•

; 20

Kearney & Trecker Corp.—
Milling machines
•
,V v *

victims of

are

spiral of inflation.
probably 20 million

are

low-wage

SPECIALISTS

•.

46%

2.00

Electrical and communication

Kable

.X 10.0 X

10
t

Joslyn Manufacturing &

•

1.00

7.1,'* ;

' -

3:1
'

■.

•/.' f-'""'

„

65% '

* Manufacturers men's clothing

line

5.0

*z •

f 1.875

Joseph & Feiss Co._„___18
.

•

Lathes, grinders, comparators,

threading dies *

.;*•

2.00

Jones & Lamson Machine Co.
'

1,1 At '

0.20."

"
Co..—_i—'-*22
'<

women

T~~

Temperature and air conditioning*

the wage-price

—•—

•

for

Johnson

one-

the union shop, and two-thirds

million voters who

63 WALL STREET

—

,*18

Utility equipment

this

oppose

simple plan.

that the majority

Members New York

' *,r

are

will

^1.2

^11: 4.5-

Refrigerators and stove hardware

they would go up fairly. There is
no economic or social objection to
a
rise of wages earned in open

y 44

a24>~ 1.47 % 34 <>-

Johansen Bros. Shoe Co

have

t""----

3.0X

■!

*•

* 2.00

-Multiple line insurance

...

25
.*

Inc._^—22

Valves

<* ;

5.81

20%

if0.76
.

Jervis Corp.

small group

men

have merely begged. There is

1.20

6.01

Jersey Insur. Co. of N. Y.—_

something shocking in the spec¬
tacle of the most powerful man on
a

Co—21

manufacturing

Bros.;

-•

' 33%

2.00

■

insurance

Life

Jenkins

hope is in you. To this point

pleading with

%
XJefferson Standard Life Ins,- 45- *f1.05

Congress of the major reform
that is so desperately needed. The

earth

7.7t
'

supplier

water

•

Co."

Inc.

Sportswear

you

195.7

Manufacturers of farm equipment

Jantzen,

June 30,

"-5
23
0.25

Quota-

James Manufacturing
;■»

■

that at this time there is no hope

one

Intend

Long

situation. '.1

12 Mos. to

Divs. Paid

Jamaica Water Supply Co.^.

ous

Photo-enp raving

already

unions,
highest

1956

100
100

man-hour

per

Wages per man-hour

•

Jahn & Oilier Engraving

recog¬

the powerful
No
thorough-going reform is
receiving
the politically possible now. But you
wages
in
all
history. as President can take a first step.
Wages set freely automatically Here
is
my
recommendation:
rise with the increasing produc¬ Ask
Congress to amend the Tafttivity of capital. In America wages Hartley Act to prohibit any strike
so
set would steadily go up, and for
higher wages for three years.
the

Here are the
1947

not

higher wages.

gains of union labor. All
figures are index figures.

value

have

you

nized publicly

mercy on the nation's economy.
As such it was a But in your statements you have
splendid proposal. But the vital, intimated that governmental con¬
all-important truth of this matter trol of wages and prices may be
is that no wages should be set by
necessary.
Such control is not
force. They should be set by free
necessary. It is undesirable.
competition of the worker, as they
Offers Recommendation
are
set now for all labor except

together. - The report "is
as a revelation of the

total

Actually your statement was a

♦

worthless

hours

produc¬

tified.

ing with benefits $8,000 a year and
a
handyman making $1,200 are

lumped

minority of labor,

"productivity," when

The figures are an average

all

June 30,1957

Extras for

Years Cash
_

union

tivity cannot be measured or iden¬

care¬

out such informa¬

ful not to give
tion.
for

was

a
minority which preys on the
majority * without - mercy.
You
plead for a wage increase based

with the increase in
productivity of the worker.

tries.

But

right.

popular misunder¬
this -vital problem

confusion

"labor." It is

years

for a

that

repeatedly said

opposed to governmental
setting of wages. In this you are
are

There will be no discussion here
labor of the character of the politicians
with all labor. Union labor is not who have encouraged this griev-:
the

the past

over

have

You

No. Con-

that we have now
immeasurably worse control of
ment you
wages, control by a small &roup of
demand only "increases that con¬
form roughly to the increase in .men, bent on wage increases with¬
out limit, determined in the end to
productivity of the individual."
Technically this statement is not manage all enterprise and con¬
trol the government of the United
acceptable^ The most unhappy
States.
/: <•
' .."
feature of the

public state¬
said that "labor" should

the productivity." In

tion

Appro*.
% Yield
Based on
Paymts. t*

Including

We have Wage Control

you

and Never Ceases

ally wrong.

secutive

Questions Pres. Eisenhower

which can
employers

unions to see

between

/.♦

Fabulous Over-The-Counter Market:

for this situation. It is mor¬

cuse

from

majority

union

the

groups

Continued from page

States through

qualified issuers."

■

.Volume

186

Number 5680

The Commercial and Financial
Chronicle

...

(1595)

Fabulous Over-The-Counler Market:
Where Trailing Starts and Never Ceases
Cash Divs.

secutive

12 Mos. to

Years Cash

Quotation

June 30.

Divs. Paid

1957

June

Based

ing

Paymts. to

28,

June 30,

1957

Cotton

seed

Kingsport

products

•

Press, Inc

Crude

■<

Company

Venetian

0.17

drapery hardware

1.00

'*•

blinds,

Co.___ -33

Creamery

Wholesale

________

v,;i>

10.97

24%-

fl.58

22%

"ll

10.62

Transformers and metal smelting

6.9
S!

23%

Kuppenheimer Co.
and

0.30

clothing
Basic

8.o

1.00

15%

6.6

; ;

8.00
1.20

■/,

141

Lake Superior Dist. Pwr. Co;
Public utility
(electric, gas and

5.7

Superior &

Railroad

Bank

1.75

*37

10.00

f0.46

5.3

1.15

17%

6.6

36%

(M. H.) Inc

.____

Variety store chain

360

Household electrical
products, etc.

Latrobe Steel
High

Lau

speed,

0.30

h8%

and
:

Blower

die,

|1.14

tool

3.4

f0.26

Electric

See under

4.1

stain¬

Manufacture of air moving
eciuip.

Lawrence
Electric

2.8

grocer

less steels

Co.

107

4.6

1.50

27%

Merrimack-Essex

work,

utility

and

3.50

58%

6.0

f 0.49 '

5.7

Liberty Bk. of Buffalo (N.Y.)
Liberty Life Insurance Co.__

3.8

f0.67

0.7

1.50

34%

4.3

2.40

3.8

0.80

3.3

f0.55

19%

2.8

0.60

1.9

business

Liberty Natl. Bank
Co.

1.35

Liberty Loan Corp.
loan

Trust

of Louisville..

Liberty Natl. Bank & Trust
Co. of Oklahoma City
Life & Casualty Ins. of Tenn,
Life, accident and health

Life Insurance Co. of Missouri

Life, accident & health insurance

Lincoln
Co.

Natl.

Bank

Fort

fl.16

Ins. Co.

Lincoln Square

1.75

and

Leader

candy

Lorain Telephone

can

5.2

fl.78

34%

5.2

1.75

32%

5.4

made

4.2

1.40

7.8

0.60

19%

3.1

1.15

4.3

fl.20

from

Certain

time

types of govern¬
regulation or control.
special privileges

union leaders would

4.0

0.75

19%

3.8

5.8

—

enactment

Roosevelt
scene.

*32

3.20

have

Franklin

after

0.63

13%

4.8

what

same

needed

very

and

industry

Guaranty

Officers

son,

Bank Building to
securities business.

John C. Owens. Pres¬

are

ViceJohn¬
Secretary-Treasurer.
Mr.;

Owens

was

formerly with Peters.

Writer & Christensen,

exercise

bears

laws

Hoppin Bros. Partner
Hoppin Bros. & Co., 120 Broad¬

trade

situation

ihe

New York City, members
New

will

position of the steel in-

York

admit

limited

Stock

Joseph

Delhi-Taylor Oil Corp.
Western Natural Gas Co.

June

15,

1957.

Equipment Ca

South Shore Oil and Development Co.

and

not

much

right

Unlisted Trading Department

WERTHEIM & CO.
Members New

York Stock Exchange

this
NEW YORK

page

enough regulation now in all

situation,
Continued

Republic Natural Gas Co.

fail

and
a

could

great

hardly

deal

Exchange,

Miller

partnership Nov. 1.

five

Inc. in the

trading department.

much like this supposi¬

titious

Chronicle)

Carl H.
Seeliger,
President; and Norma R.
ident;

way,

Yet

engage

relation

applied to labor unions would

Including predecessors.

antitrust

the

combined

But all this

conscience,

paid

(Special to The Financial

DENVER, Colo.—Owens & Cc.
has been formed with offices in

the

from

passed

Beethoven concerto. We have

northern

was

strict

by Congressional

bears about the

finger

Details

held

Own Investment Office

have been withdrawn—or so

12
in

John C. Owens Opens

various

7.1

real estate

chain

appears

every one in the
makers of steel

designed to keep competition

the

bring the conduct of the
unions
in
general more in
keeping with the welfare of
the country? The question is
a
fair one, and deserves a
most careful reply.,
Suggestions have been

980

Co.

what

generally.

0.20

not complete as to possible longer record.
Adjusted for stock dividends, splits, etc.
h A stock dividend of one share of
Lang Construction
a

curb

70.00

each

Yet

California

for

country can not afford to forth

7.5

and dry cotton goods.

food

land.f The

Operating public utility in Mass.

situation

—

believe

Lucky Stores, Inc

virtually

0.90

See under Merrimack-Essex

Retail

those

such

any such con¬
Evidently the matter
safely be left to the

politicians. The people them¬
selves must take control. ./

by-products

Lowell Electric'Light Co.
Electric

acts

not

can

is unthinkable and

8.6

Bleachery, Inc

Bleaches

clusion.

for the

have

mental

(Ky.)__

pay

Unthinkable, of Course

5.1

tactics which drive the

recent

company

Louisville Trust Co.

they would
they need.

Of course,

a61

Louisville Title Mortgage Co.

not

Disgrace

140

Louisiana State Rice Milling

Lowell

what

2.30

Operating public utility

insurance

organiza¬

been pinpointed would have only the com¬
hearings in Wash¬ petition of producers of sub¬
which
ington and elsewhere are stitutes for steel
added the lawlessness of vir¬ could
hardly amount to a
tually all unions once a strike great deal, and perhaps steel
is under way; the carefully manufacturers would know
planned limitation of the out¬ of means permitted by a
put of union members; and friendly government to see to
the bludgeoning tactics of the it that competition even from
large unions when negotia¬ this quarter could not func¬
tions are in process—we thus tion. A state of affairs far less
than this
have a state of affairs that extreme
brought
which

Co.

com¬

enter

workers

Co._=

of the leaders of

12.00

field

Los Angeles Transit Lines

politicans have created.
enough that the pub¬

It is not

have

Becks, the alive
Hoffas and all the others, or

Manufacturer of Portland Cement

and

officials

This situation is clearly a
disgrace not only to the labor
organizations of the country
but
to
the
country itself.

tolerate.

Lager beer

Traction

steel were permitted to
the bine and did combine or

Brewing Co

their

un-

steel

this

pipe

Longhorn Portland Cement

Title

dock

sewer

the

Lone Star

Rice

the

0.8

England

Loft Candy Co

his

this score not very
much progress is
likely to be
made. Let us see where this

New

and

similar consumers, were
at should teach us. Yet there is
deliber¬ the same time forbidden to little evidence that the pow¬
ate choice of further degrada¬
enter into any understanding ers
that be in Washington
tion as witness particularly
among themselves about have come to

done

Stores, Inc.

Lock Joint Pipe
Water

the'"

parent unions and

3.1

Co.

Building Co.

Dept. store chain in

earner

been other instances bile manufacturers and other the defiance of the teamsters

course,

221%

Springfield, 111. real estate

Lincoln

wage

masses on

Trust

the country.

The

enough to condemn union
prices
into a contract
governing the of consumer products up and
come
to light. It is evident
prices at which they would up. Correction of the under¬
that the so-called labor move¬
sell their products to the con¬
lying causes of the situation
ment is unable
assuming a sumers of the
country. Sup¬ is essential.
;.. willingness to do so — really pose further that the users of
These are the lessons which
to clean house. There have, of
steel, say the large automo¬ the recent investigations and

3.5

Trust

(Rochester)

its

insurance

Lincoln Rochester
<

12.50

Bank

Syracuse

Lincoln Natl. Life
Life

Trust

Wayne

Lincoln Natl.
Co.

When to* such

aircraft

Non-participating

conduct

practices

play

Starting-light equipment for autos

Small

of
in

5.5

clothing

Leece-Neville

of the

tion.

Operating public utility

and

e a

Co.

Lee (H. D.) Co
Mfr.

of defiance

Wholesale

across

—

Landers, Frary & Clark
Lang &

4.8

Savings

(Chicago)

Lamston

not

to suppose

American

5.0

Ishpeming

Co.__

Lake View Trust

union

Operating railroad

provisions

mass
feeling about wage lic be shocked with such be¬
that, all earners
;:has led us. Suppose havior as r hal been revealed
unworthy ?: deeds of the all the manufacturers
of, say, in recent investigations. It is

union

water)

Lake

respect labor
only condoned
but actively approved by the
politicians and a great many
of the people.
This type of special. privi¬
lege before the law and this
type of public thought about
the wage earner is what
makes possible situations such
as that now
prevailing in the
teamsters union, and some of
the other unions, as well as
the general practices of the
unions which lay so heavy a
burden
industry and
upon
trade. The remedy, and the
only remedy, likely to be ef¬
fective for any. length of time
and over significant areas, is
an
awakening of the people to
the situation which they and

futuY9.,It,would likewise

the

,.45

manufacturer

acceptable

be naive

steel

convention

the

is: thq case- also
the AFL-CIO and, for
agriculture, have some¬
matter, of the Congressional how
acquired a special status
investigators in Washington! in the minds of the
great rank
It would be naive indeed to,
and file of the
people of this
suppose that such changes in
country, and until some way
organization as were made at is found to disillusion the
the recent

2.7

wholesales men's

Laclede Steel Co.

re*

union offer any assurance

Canned vegetables, bottled pickles

;

:
L

Kuner-Empson Co.-

Makes

Kuhlman Electric Co

)

;

3.9

•

All

the

of unions,
that with

2.6

furnaces

union, in what must be
garded as open; defiance

6,0

;16%:

present harm.

elected President of the

now

7.6

2'/4

moving and' construction

equipment-

Koehring Co.
Earth

dairy products, South-

ern_California

4.3

f 1.225

Operating public utility
.

Kittanning 'Telephone
Knudsen

3.8

2.7

f0.77

are

criminal indictments.

Taft-Hartly Act combined
And here is Mr.
Hoffa, who hardly make a dent in the
was
actively associated with special privileges accorded to
the management of this union labor
by the politicians who
through all the days when are eager for the votes of the
such things were
happening, members of the giant unions

oil produced.

Manufacture

>1%

0.05

...

Printing &nd book binding

Kinney Coastal Oil
Kirsch

13.73

officials

under

1957

Kings County Trust
Company, Brooklyn, N. Y.
Kingsburg Cotton Oil Co

We See It

% Yield

Extras for

dustry exists
—and

Approx.

Including
No. Con¬

Continued from first
page

Chronicle

The Commercial and Financial
40

...

Thursday, October 10, 1957

(1536)

holds, had some debt
as of mid-1956.

outstanding

billion.

increased

demand

for

expan¬

Cash Divs.

Simply to make more dol¬
to bid for labor

sion.

of "tight" money has,
turn, further contributed to the

Divs. Paid

■

2Vz years.

to supply enormous amounts
of both short and long-term funds.

upon

executed.

These
tures

capital expendi¬
have been financed in part
business

by heavy borrowing. Total cor¬
porate debt has * increased from
$210 billion at the end of 1954 to
$247 billion at the end of 1956.
Borrowing

State -Local

accommodate the ly important-roles in the deterTo combat
normal borrowing needs of their mination of prices.
inflation requires responsible be¬
customers.
havior on the part of business,
Credit Restraint Policy
labor and government. The effecfunds

these

supply of credit, however,
is limited. As more and more in¬
The

dividuals, businesses, and govern¬
The third major source of in¬ ments have sought funds, the de¬
creased demand for credit is the mand has tended to exceed the
borrowing by state and local gov¬ supply, and interest rates have
ernments — the Federal debt has risen.'* Money
has
been
tight
steady

rather

remained

for

sev¬

With a growing popu¬
lation, state and local govern¬
ments have a persistent demand
for credit to finance the schools,:
roads and other public improve¬
ments needed by the American
people. It is likely that this trend
eral years.

continue

will
an

the demands of

expanding population continue

to increase.
Most

;

public

improvements are

financed by borrowing, and many,

Automotive

Manufacturer

tary policy, even

executed;

schools and roads, go for¬

consumer

govern-,

ments in the two-year

ing Dec.

period end¬

1956, increased $10

31,

This

has

constructive.

are

been

in any

stock

these pages?

\ A

Trading Department v

'•

Beane

NEW YORK 5, N. Y.

Offices in 112 Cities

FOUNDED

1885

21 &

4.7

5.6
6.7

0.60

i2y4

4.7

Madison Gas & Electric Co.—
Wisconsin utility C
<
-

1.80

,43 y4

4.2

Magor Car Corp.——

2.00

1.20

Houston

publisher

;
— _

drug chain

Railroad

Mahon

rolling

insurance

*48

i
•

•

f0.99

4.5'

21%

0.90

*40

1.875

—

V.a.

-4.5

1.75

(N.- Y.)
Maremont Automotive Prod¬
parts

0.9;

244

2.20-

Trust

ucts, Inc. ^

5.0

•

(Detroit)—i
Traders Tr. (Buf.)__

Manufacturers

Auto

8.0

h 24

Mfrs. Natl'Bank
Mfrs. &

f).

and

steel

structural

metal products

Manufacturers Life lnsur. Co.
Life

stock

(R.C.) Co.—

Fabricated
sheet

4.7

V;" I4%A; 6.3

Marine Natl. Exchange Bank
96

BasVet (Los Ang.).^

">e. Retail market chain

„

12.20

of Milwaukee

Market

t0.69

Mfr. ball

Auto

•

1.75V

.72

2.4

375

11.00

2.9;

'
•"

t**. '* K'fj--&'.'*■

products

lines,

Corp.'—ll.i.-

Mills

:
*

wholesales

hardware,and kiiidred

Maryland
Corp.

A A'

4.1

48y2 A 6.2

1.15"

and roller bearings

Manufactures and
i'-

Marshall & Il^ley, Bk. (Milw.X, 19
Marshall-Wells Co. A_A——- *12

Martdll

4.2:

16%

Marlin-Rockwell Corp.—T—. 33

••12

6.6

,26

6.7

3.30-

;

^'.A -A

Finance

edit

1.75

,;10

——»

financing

Maryland Shipbuilding &
A Drydock Co.
—A
Ship construction,
conversion,
rppairs
and . manufacturer-, of
industrial products i* '

3?y2

3.2

•i)»*

2.00 t

57y2V,

3.5

1.60

5.0

k3.00

78-

4.35

112

Maryland Trust Co. (Balti.)^

0.40

Massachusetts Bonding & In¬

the

central

banks

In
are

sociation, Inc.'
Massachusetts Real Estate Co.
Mastic Asphalt Corp

(

KiVtincr

siding

-5%

7.3

•

1.00

2.9

Conveying equipment

;

far this

Matthiessen &

Hegeler Zinc
1.40

Producer

•

of the difficulties confront-,

•••„

Details not complete as to

4.6

possible longer record.

t Adjusted for stock dividends, splits, etc.
k Equivalent to $1.50 on basis of 2-for-l

;

30%

zinc,v zinc products;
and
ammonium

sulphuric'" acid
sulphate
{ i •'

•

ing the nation, has, reduced expen-i
ditures, designed programs to en-

Mathews Conveyor Co.--—-_

Meanwhile, worker productivitv has remained virtually unchanged. The government, keenly
aware

3.88

Imprinted brick apd insulating

productivity, and incomes.
1956, wages rose 7%, and they
so

3.8

Real estate

are

England, for example, there
serious economic problems of

have risen another 5%

Accident and health insurance

costs,
In

—

Massachusetts Protective As¬

the level of their ex-

foreign exchange bal- ;
ances.
Bank credit has expanded.
Interest rates and
the discount of

Co.

surance

Diversified insurance

year.

1.00

1.70

and

rates

Fenner

6.1

K 3.00 A 49

70 PINE STREET

—

Cotton

higher than they were in 1954.^

Merrill Lynch, Pierce,

4.3

Products,

Sport

Well-known book

Their primary prob¬

years.

its effect

ports
m

5.3

1.00 A 23

1.75'31

lem is the threat of inflation and

prices, quotes, or information,

1.00 A19

;

simply contact—
■

Mading Drug Stores Co.——-

•

Wages and prices have risen, ac-A,
companying an extraordinary ex- »
pansion of productive capacity
which has taken place in the past
seven

For latest

7.6

supplier "' ~

Wire, rope, cables

with ,.how

impressed

ioy2

categories

Extras for

secutive

however,

than worth while.

Approx.
% Yield

Including
No. Con¬

availa¬

now

investment,

Certainly
when

are

Cash Divs.

elaborate

than

would

(c) Efficiency—No discussion of
natural monopoly and
serve
to
the
railway industry could, be
thing, comparisons of rail handicap
rail
managements
in
costs with highway costs do not
complete without taking up the
meeting the competition of other
measure the premium people are,
problem of efficiency or lack of
modes of transportation.
it of the industry. Because of the
willing to pay for the additional
If it could be demonstrated that financial
speed, flexibility and convenience
results, it has often been
the railroad industry's
of highway transportation.
monopoly alleged that the railroads have
power had completely disappeared,
been back ward relative to the
Although from the point of view
it might
be possible to restore other facets of the American econ¬
of better efficiency it is doubtless
freedom of pricing to the industry.
omy. From 1899 to 1953 the over¬
true that rail transportation is the
leader in the overland field P>r Unfortunately, the industry still all productivity of the American
enjoys a monopolistic postion in economy increased according to the
most communities, it is also true
the transportation of certain com¬
Kendriek study of the National
that the wealthier the community
modities in certain areas and it is Bureau of
the more likely is it willing to
Economic Research, at
these industries, such as the coal the
pay premiums for the luxury of
compound rate of 1.7% an¬
industry, that may be expected to nually.
All
highway transportation. What is
manufacturing
in¬
forces
with the
railroads' creased its
needed is a means of bringing the join
productivity at the rate
competitors in keeping them of 2.0% annually while
true costs of competing methods
mining
of transportation out into the open chained tightly to the Interstate also averaged 2.0% and agricul¬
ture 0;7%.
where the buyer can decide on an Commerce Commission.
The railroad produc¬
economic rather than a political
One of the chief objections, how¬ tivity increment was at the rate of
basis the size of the premium he
2.3% annually which was at ex¬
ever, to giving the rail industry
is willing to pay.
There has not
actly the same rate as the well
price freedom could be met by regarded petroleum
yet been decided a better method
industry and
for making this decision than an permitting and
limiting the regu- not too far from the 2.7% dis¬
this

page

Fabulous Over-The-Counter Market:

portation that the industry would
use the loss leader principle in

The Railroads and Theii Future

from

Thursday, October 10,195t

as¬

competitive forms of trans-,

sure

...

1.00

29%

3.4

0.12

3.7

softeners

Personal

Industrial

Bankers,

Inc.
Small loans

•Details not complete ps to possible longer record.
t Adjusted for stock dividends, splits, etc.

.Volume 186

Number 5680 !'. The Commercial and Financial Chronicle

Continued

Fabulous Over-T he-Counter Market:

Extras for

secutive

12 Mos. to

Quotation

Years Cash

June 30.

June 28,

Oivs. Paid

1957

instance

1957

Paul

Peter

Co.__-__________

2.50

35%

7.0

Producing
natural

petroleum,

crude

3.00

three

point

program

ipe

4.6

numl?er of trains

th*

2.75

112

track equipment,
ing and machinery.

Railroad

Pfaudler

f1 90

45%

4.2

0.90

221/2

4.0

1.50

2.8

114

*1.70

34%

4.8

resistant equipment
,

Pheoll Manufacturing Co
Manufacture

metal

fasteners

effort to cover the deficits of

Philadelphia Bourse
Exhibition

and. office building

profitable

Philadelphia National Bank.

Philadelphia Suburban
Transportation Co.

______

service.

Philadelphia Suburban Water *13

f0.49

30%

1.6

4.6

3.00

(except life)

Pictorial Paper Package Corp.

0.60

Piedmont & Northern Ry

7.00

0.16

3.00

______

2.00

123

un¬

commuter

5.7

5%"2.9

and

financing

with the

suburban

land

developed, the mass transporta¬
tion problem of these communities

Pioneer Trust & Savings Bank

(Chicago)
Pittsburgh Fairfax Corp.—.

250

3.2

4.1

should make both the public and
local

Owning and operating apartment
building

ter

Plainfield-Union Water Co.__

3.00

5.0

12.36

4.2

3.00

43y4

6.9

1.8

government authorities bet¬

disposed towards
with the

ment

Operating public utility

least

0.50

measures

area

authorities.
the
to

the

(e) Inflation

Manufactures
trical

riod

Lightweight papers

2.00

3.4

581/2

high voltage elec¬
equipment, hydraulic presses
related products

and

PORTER

(H. K.),

(MASS.)

0.45

8i/2

5.3

Manufactures electrical equipment,
industrial
rubber
products,
steel
tool

and

steel, copper and alloy
refractories,
saws
and
fittings, wire rope and re¬
lated products

metals,

are

tools,
•

See

Company's advertisement

Portland Gas Light Co

0.50

1.20

utility
Portsmouth Steel Corp

5.6

5.4

22%

Cleveland-Cliffs
Steel

Corp.,

interests

0.86

Co., Detroit
companies
in

1.00

1744

5.8

4.00

5.0

1.60

19%

8.4

the increase in price

1.00

197/s

5.0

roads

1.75

4.7

Multiple line insurance

April

Bank

old

held).

j92

(Phila.)

y2.32

5.4

computed

that basis.

PRIMARY

page

permits in

of
their replacement out of capital
with the depreciation rate for tax
purposes determined by original

MARKETS

accounting

CO., NEW

much lower level.

YORK

J. B. MAGUIRE & CO.,
Milk

creases

are

not forthcoming, then

Open-end Telephone Wire
6-1613

Bell

System

Providence, R. I.—Enterprise 2904

INC.

Hector W. Bohnert

ing

Specializing in New England Securities
»•

General Market Stocks and
1

Bonds
.

NA¥&6ANNON«
STREET, BOSTON 10, MASS.

140 FEDERAL

William F. May

Joseph Gannon

Williarn J. Burke, Jr,

President

Vice-President

T reasurer

NEW YORK

BOSTON
HU

CA 6-2610

2-8360

New York

favored

142

enterprises.

Moreover,

the Interstate Commerce Commis¬

Portland, Maine——Enterprise 2904

sion in recent years has

reasonable
.

HARTFORD

PORTLAND

PROVIDENCE

Enterprise 9830

considerations, however, the

immediately or in as large a meas¬
ure as would be the case in not so

Boston—HUbbard 2-5500

Teletype—BS

Since 1920

Because of the forego¬

obviated.

Hartford, Conn.—Enterprise 6800

TRADING DEPARTMENT

King

road's

position in a period of inflation is

Street, Boston 9, Massachusetts

York—CAnal

}

OUT.

This,

roads need not obtain increases as

New

TRY

get rate increases, is by all means
the most important for if such in¬
all other advantages of the

BEST*

THE

make

must

too, is a point in favor of the in¬
dustry. The fourth consideration,
i. e. the ability of the industry to

CORRESPONDENT

KIDDER

ISN'T

Moreover,

tion

NEW ENGLAND SECURITIES

IS) TRADED IN THE LOUISVILLE
OUR

MARKET, YVE WILL GIVE-UP^IF
BID

level and the
bill. Rail¬
most

Other industries,using deprecia¬

UTILITY and INDUSTRIAL STOCKS

Teletype LS 186

wage

effect the

cost at

BOSTON

in the

replacement, of facilities
via the tax favored expense route.

Yield

Feb. 18, 1957.

Continued

Life Bldg.

represent one of the

by a public authority.

possible longer record,
Adjusted for stock dividends, splits, etc.
jNew Bank paid an initial dividend of 58c on August 1, 1957.
t Reflects 3-for-l stock split

Home

contract,

union

maintenance accounting

Details not complete as to

was

term

petitive forms of transportation,
especially trucking, still face an
enormous
investment
at
rising
costs even though it may be made

Provident Tradesmens Bank

IF IT

Charles C.

the right of way and adjunct
facilities is already in being. Com¬

Tradesmens

Bank & Trust Co. (stockholders
received 1 % new shares for each

& Trust Co.

Bell

Co.

Trust

Stock Exchange

Floor, Kentucky

LOUISVILLE 2, KENTUCKY

Third, the permanent investment
in the railroad industry in terms

with

1957
&

Provident

1st

strongly unionized areas in Amer¬
ican industry.

Savings

form

fixed

increase

Bank &
(Cincinnati)
Provident Trust Co. (Phila.)_

are

though it may have an esca¬
lator clause, gives the company a
benefit of the time lag between

Laundry and dry cleaning

Trust Co.

in honor."

even

Operating public utility

Providence Washington Ins._

are

ganized enterprises during infla¬
tionary periods. This is because

6.3

the

Princeton Water Co.-

balance

position

Progress Laundry Co.—

Tradesmen

better

35%

Piano and organ keys

Merged

debtors

2.25

Potash and nil interests

Provident

Member Midwest

There

four

Pratt, Read & Co

now

firms

fields

Potash Co. of America...

position of the rail industry
may well be epitomized by the
words of the Roman poet, Horace:
"Many shall be restored that now
are fallen and many shall fall that

Secondly, the strongly unionized
tend to be better off than
the nonunionized or weakly or¬

4.8

173/4

Iron

and

inflation.

roads are indeed well situated.

Electric

substantial

■

The

INCORPORATED

gain in
periods of inflation than neutral
industries and especially creditor
firms.
In this respect, the rail¬

Operating public utility

Portland General Electric

Owns

chronic

much

page

serve

BANKERS BOND

—

which affect the
*19

step in

the argument that the

principal considerations
ability of the rail¬
road
or
any
other industry to
survive a period of inflation. In
the first place enterprises which

are

INC.

__________

right direction and will

remove

the

regdlatory.

This will be

There is much
concern
about the ability of the
railroad industry to survive a pe¬

Co. (Pa.)____

Under these
will have a
healthy industry performing an
indispensable service and provid¬
ing profit opportunities for inves¬
tors.
1
/ /
; / .
;
1965.

should

bring them down to manage¬
proportions.

able

proper

minimum rate

miles

if not eliminate, passenger
deficits for the operators or at

Manufacture of rope, harvest

twines/twisted paper products
Port Huron Sulphite & Paper

arrange¬

notion of

ton

circumstances,

help,

products

Plymouth Cordage Co

fic and reach well over 800 billion

commutation rail¬

All these

roads.

Planters Nut & Chocolate

pricing of their services. They
should be willing to accept the

willingness

behalf« of

the

shown a
act on

carriers.

This

Bell System

pro¬

If the railroad industry is will¬
ing to accept the challenge of a
dynamic innovating economy, it is
quite possible that the passenger
business may be operated for the
most part on a break even basis.
What is more important, however,
is that the railway .industry can
maintain 45% of the intercity traf¬

In summary, railroad manage¬
ment must work towards long haul

the truckers. The rail industry
must also work towards free

mass

transportation and re¬
organize its attitude towards the
passenger business.

subsidy arrangetransport authorities in their service area. As the
metropolitan populations grow and

Operates Diesel line in Carolinas

Pioneer Finance Co.__

and

perform the long haul portion of
Thirdly, the roads which carry the service while leaving the conlarge commuter movement must venience and flexibility facets to

ment

Porter (H. K.)

must strive towards the

duction

losses

work towards

6.0

Paper boxes

to think and that

before.

Operating public utility

Phoenix Insur. (Hartford).

Mobile home

;seem

policy will in time efficiency and diminution of sub¬
of traffic so that sidies to competitive carriers! In
the meantime the piggy back idea
come unprofitable
leaving the car¬ has the fundamental economic
riers worse off than they Were bentfit of
enabling the carriers to

motor buses under charter

Peanut

would appear,, therefore, that alternative technical means for
the position of the railway indus- providing the most efficient serv¬
try in a period of inflation is not ice and know their costs and marto nearly as desperate! as many eom- ets to a degree far greater than

the profitable routes will also be¬

2.9

10.575

routes

Such

result

Operates street railway lines and

Insurance carrier

larger investment ill re¬
search, technical,. accounting and
economic.
They must know the

must be improved in titude
of the regulatory commis¬
terms of performance and comfort
sion will go a long way towards
lest the loss of traffic result in
enabling the carriers to keep pace
even greater losses.
with the cost-price
spiral. ,
Secondly, it is not wise to milk
Conclusion
profitable passenger routes in an

3.2

much

2.5

forg¬

(The) .Co..

Corrosion

1.20

system

The railroads must also make

in comparison with
Aeronautics Board in

however,

Mulliken

free price

their superior size and

use

financial power to destroy ; their
competitors by temporarily selling
freight service way-below cost.

handling airline rate petitions.

mentators

Corp.

under

and

Chemical compounds

Pettibone

roads

■

i8
° we+

gas

Petrolite

orK0nVd PSer/efUltS*

Popular candies

Petroleum Exploration

public authorities insist upon especially
maintaining the service. In this the Civil

Paymts. to
June 30, ■

1957

page

The Railroads aid Their Future

Approx.
% Yield
Based on

InclOding
No. Con¬

from

would

Where Trading Starts and Never Ceases
Cash Divs.

(1601)

Teletype BS 568-9

Chronicle.... Thursday, October 10, 1957

The Commercial and Financial

(1602)

Continued from page

important, I would say, is the
camouflaging of their basic aims;

too

much, but let me lose 1% on
a stock with equal or

"XYZ"

Fitches,

being

of you have heard
about, and Brookmires with both
having
additional specialized

which

many

services.

—

Value

you'll cry blue

greater value—and

Appraising Service

perhaps, you'll be too
polite, and then I'll have a guilty

Also, in the line of published
services, there is Value Line which

conscience.

has grown up to be quite success¬
ful over the last few years, and

murder

Published Services

The

of Advisory
Service a v a tla b 1 e to you is
through the published services,
some of which, incidentally, also
afford Consultation privileges.
Now first let me tell you that
there are various kinds of Invest¬
ment Services which give the in¬
vestor factual information about
particular securities, or on the
The next category

market

Poor's

Standard and

whole.

Corporation has

complete

statistical service called "Corpora¬

Records" compiled in six
large loose-leaf volumes of very
comprehensive, basic descriptions
of all important companies. These
are revised periodically for earning
statements and for other impor¬
tant facts and corporation events.
tion

■*

They are constantly kept up-todate in a Daily News Section. This
concern

Poor's
with
tion

Standard and

that

—

also gets

—

out

serivce

a
Daily Dividend Informa¬
Record, and also a Record of

Called

Bonds

Preferred

and

New-Issue Service, Un¬
Report, Listed Stock
Reports and many others dealing
in various specific categories of
continuing corporate information.
Stocks,

the

basis

stand¬

statistical

other.

The Value Line shows the

the next

that
to

has

12 months at

normal

been

services

organizations which issue reports
of curent happenings which apply
only in a minor way lo securities
and are intended more for the
businessman. For

example, there's
The Research Institute of Ameria,
of which Leo Cherne is the head,
Kiplingers in Washington and the
host of those who
have copied
them.

In the "Technical" Area

And

then, there is the multitude

technical

services

for

stock-

market

is the Moody organization. It has
its large-scale well-known basic

forecasting, which is so
popular. These fall into various
categories: (1) For defining the

manuals

so-called

of statistics

ocean

semi-weekly pub¬
lications completely covering,
separately, governments and mu¬
nicipals in one volume—banks, fi¬
nance and insurance companies in
another volume—industrials, pub¬
lic

and

utilities

third

railroads

and

volume.

straight sta¬
tistics category it issues a divi¬
dend record twice weekly.
And
in the advisory field, Moody's is¬
sues
reports on the cilents par¬
ticularly holdings, an inexpensive
a

of the market

trend

which I'll have

acter of the market.

(3) The very
popular formula-plan services.
(4) Cycle forecasting, (of which
you've heard a great deal).
(5)
Measurers of market psychology
determining who is doing what.
For example, Garfield-Drew has

service

based

the

idea

measuring the odd-lot business

deposits

but

well

$500

fees.

with

for

Now,

than

less

the

ment

limited

There

giving

are

along the

mmm.

_\0—

some

advice

rnmmmm*

same

other services

and

lines,

information
among

the

The Flaws

Now, to give

you

some

the

part
of the

common

faults of all these stock-

market

advisory

Bank

but

this

bonds.

And

usually,
the bank's

Most

1956

Cmm*

"Living" Trust, which is
the banking operations,

which may or may not be co-min¬

gled with the bank's
fund.

services:

trust

common

The

charges here are set by
law and are quite moderate. And
here, you can give the bank quite
wide discretion in handling your
portfolio. Now, there

distinct

are

advantages in the bank trustee—
as

their

having management

ex¬

perience.
Also,

have

available

trust fund. There

categories for
put

which you

others in

one

are

the
two

handling these
your money
common

in with

fund.

One

is in legal

investments—including
disretion to put up to 35%
in
common stocks, or the other cate¬
gory which is discretionary with
full

latitude

cost is

the

trustee.

quite moderate: 6%

first $2,000 of

$10,000

income; 3%
or

0.3%

The

the

capital

value.

difficulty in withdrawing with¬

out undue

delay.

0.50

__■

—-

gas

3.6

.
.

f0.79
2.00

■

6.4

31%

and air

Boston

operation

•

new

1956

the

4.6

1.30

4.2

1.10

16%

6.8
6.0

3.8

Ground

Western

the

Rent

Trust,a

Trust

Estate

Real

Estate

Rial

Trustees

•

retail

Midwest

food

___

chain

(Mass.)

Corp.

7:':-

Red Owl Stores, Inc.Reece

•

J-ti. a71

3.2

formed in June.
result of a merger of

Boston

and

26%

fO.85

;

company

Boston

the

______

4.8

210*

0.60

-:-C 23

Real Estate Investment Trust
oft America

Ho.oo
7

Ralston Purina

—

Makes button hole machines

Co., class B____

1.50

Reinsurance Corp. (N. Y.)___

0.50

13%

Reed (C. A.)
Crepe paper

<•

Writes only reinsurance

Reliance Varnish Co—-,—
i

;

Paints, varnishes and enamels

0.60

6.7

Consecutive Cash Dividend

Over-The-Counter

Payers From 5 to 10 Years Appear in the
1

Second Table

Starting

Republic Insurance (Dallas)i

Page 51.

0.20

3.0

f 1.65

50%

1.50

National

Republic
*

Bank

Dallas:™

REPUBLIC

3.0

LIFE

NATIONAL

INSURANCE

(DALLAS)
•

See

CO.

oVA

5.2

Company's advertisement on page 55.

Republic Natural Gas
Natural
-

" 19

35%

1.00

ga&iand oil producer

2.8

►

Also

there

the

California

Suppliers and distributors of .oilwell

and1

in short-hand language you

Mutual Fund, which

Continued

17%

f0.98

5.5

2.4

{industrial

supplies
Resistance -Welder Corp—-_

•

;

0.15

High production welding machines

Revere

Rafctpg Assn.__—15

Dog racing,:;near Boston
Rhode Island Hospital Trust-

8.6

f3.58

85 y2

4.2

of battery
products

Manufacturers
and plastic

0.60

1.00

14%

6.9

Richardson Co.

0.70

5.0

parts

Rich's, Inc.--

Operates Atlanta department store

1.35

5.9

1.25

9.3

1.50

34%

4.1

0.60

25%

2.3

3.95

5.8

a24

1.50

is%

8.1

0.80

5.0

|3.20

4.3

1.60

4.0

1.00

13%

7.4

1.00

20%.

4.8

1.00

45%

6.3

1.60

35%

4.5

Rockland Light & Power Co. *43
Hudsori vfrest shore electric

0.75

19%

3.9

Riegel Textile Corp
Wide

line

textile

products

Rieke Metal Products CorpHeavy metal stampings

Rike-Kumler Co
Dayton department store

Riley Stokjer Corp
Power

stejlhn generators

Risdon Manufacturing Co
Small

River

mej&l. stampings
Br$hd Rice Mills
fyice miller and packager

Leading

Public

©as Co

xitii^ty. Distributes natural

gas

Robertson:(H. H.) Co

—

Manufacturers of construction
materials;'

Rochester; American
Co.
Diversified insurance
ance

Rochester;

Insur¬
—_._

Button Co.__,

Button#;^ /

Rochester
Operating
Rock

Telephone Corp—
public utility

ofJrAges

Corp

Granite

puarrying and mfg.
Rockland-Atlas Natl. Bank of

supplier

Roddis

Investment

727 Massachusetts Avenue

Republic Simply Co. of

f2.16

4.7

fO.58

14%

3.9

Meters^ valves, power tools

Co-op

Company

"Trend"

and

Rockwell Mfg. Co

The Investing

New England Gas and Electric Association
Cambridge 39, Massachusetts

23%

Boston

A drawback in this type of fund

for latest Annual Report write

2.2

J ^ .*
Quincy Market Gold Storage
i5

Roanoke
we

common

Of*

33%

management service,

on, are the recognized standard
throughout the investment world.

4.4

3.00

charge to
and
of
"bucketing" operation).
(6) customers if this advice is not too
personal
Services regarding individual
and its s«*frequently taken advantage of.
pervisory service for banks and companies, as Value Line which
Then there are Trust Depart¬
trust companies;
Moody's bond I have just mentioned, and vari¬ ments of both the Commercial
ratings, for quality—that is with ous others. (7) Money and serious Banks and the Trust Companies.
"AAA" "AA" "A", or "B" and so economic analysis.
As a place for your funds there
surveys

Filters oil,

persons

minium

$100,000, he can usually get advice
from Officers of the Trust Depart¬

its

surveys,

Makes "Purex"

ally, but not always, the bank re¬
quires a fee of % of 1 % of princi¬
ple with a minimum of $450 to

opinions in its stock
bond

6.0

16%

printing phfnts

Purolator Products

Advisory Services, which inCounseling as
as ^Custody
Service.
Usu¬

there

sort

16%

0.71

include Investment

usually spasmodic and, most often,

its

Owns ^rotogravure

Invest¬

some

always wrong

1.00

Fire and casualty insurance

The bank also has

service for individual and institu¬
tional
investors.
It
also
gives

(so it is

Punta Alegre Sugar Corp.— r 12
Cuban holding company
Purex Corp.,.
Ala

the premise that the small inves¬
tor who
deals in an odd-lot is
...

3.3

"s-

Public utility

custodian accounts.

ment

Anfmal feeds, breakfast foodsJ

pay

1957

0.87

Publication. Corp. vot

deposits. They
give various service to you, the
security holder; in many cases,
the bank completes your security
transactions by receiving and de¬
livering certificates for your account.
Then, they have Custody
Accounts, which hold a customer's
securities for him; advise him regarding corporate actions on his
holdings, like redemption of bonds
or
stock
rights,
which
might
otherwise get lost of thrown in
the
wastebasket.
They include
no
advice on portfolio manage¬
ment. Then, there are safe-deposit
boxes, from $5 to $6 up which are
not needed, of course, by these

1957

Paymts. to
June 30,

Electric utility

to 3% now on time

lot to say,

mostly
debunking, in a later lecture; (2)
for analysing the so-called char¬
a

demond

with

connected

tion

June 28.

30,

Public Service Co. (N. Mex.)

investing your funds!
First, we,.have the Commercial
'
Bank, which is readliy available
*
to you.
They pay no interest on. J

rate

Based

Foreign and domestic banking
business

Public Service Co. of N. H.__

are

And now for some of the places

past experience.
Then, I want to remind you of

various

Provincial Bank of Canada._
-

for actually

according

June

Quota-

area,

Places for Your Funds

12 Mos. to

Oivs. Paid

price which would be justified by
a
similar
capitalization
of the
earnings and dividends estimated
for

secutive

Years Cash

and

are less
successful (which I will
ratings revealing the
go into in a later lecture). Inci¬
relationship lor 800 stocks over
dentally, don't forget the fees you
the past 20 years, between earn¬
pay for subscription services are
ings and dividends, on the one
tax-deductible.
hand, and market prices on the

based

Extras for

in response to the
popular will and popular pocketbook, where, to say the least, they

The Value Line, briefly, is

ards.

Approx.
% Yield

Including

and mord into the fore¬

casting

ori evaluating individual securities

listed Stock

Now, another

out

Trading Starts and Never Ceases
Cash Divs.

invaluable to
the investor. But they also branch
priceless

just

philosophy,

investment

own

which

statistics

No. Con¬

tremendous amount

avaluable

in line with

this is concentrated,

Where

getting out

Fabulous Over-The-Counter Market:

class language;

known

better

conceal

often

"tipping technique" in very highwhich means cam¬
ouflaging
"low-tipping"
with
fancy moralistic language.
But,
above all, I want to give you my
over-riding reaction on all these
services.
Namely, that they are
good on fact but far less happy in
their forecasting
activities.
For
example, several do a truly monu¬
mental
and
worthwhile job
in

Observations..
escapism of both investors and
particularly^ of trustees. If I lose
30% of your money in American
Telephone you're not going to say

they

example,

tor

Continued from page 45

might

page

Plywood Corp.___

Manufacture

and

distribution

plywdod (doors and lumber
♦

Details not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.
a

Including predecessors.

Volume 186

Chronicle

.The Commercial and Financial

Number 5680

Continued

Fabulous Over-The-Counler Market:
Where Trading Starts

Cash Divs.

Including

Observations.

12 Mos. to

tion

June 28,

June 30,

Divs. Paid

June 30,
1957

steering

5.9

gears

1.9

'•

*■

1-65

16%

10.2

Shops

1.25

28%

4.4

Manufaetures textile machinery

Safety

Industries, Inc

Supplies

following

the

markets:

...

general industrial, food, chemical
and

...

•

steel

grand stands

and

scaffolding,

;

;;

6.7

».

8.00

Co:

4.5

1.25

„

;

Maine producers

St. Joseph Stock Yards Co.

St. Paul Fire & Marine Insur.
Paul

Union

Minnesota

Stockyards

operator

San Antonio Transit Co
Intra-city. busses

San Francisco

i._

changed in January, 1957,
Burgermeister Brewing Corp.

San Jose Water Works.
Public "utility

0.60

13%

"
4.4,

Brewing Corp.

Name
to

8.0

V-~

13*

■ -

•

43%

they

have

safe-deposit

vaults and notary service, and take

6.5

of mortgage

care

4.00

48%

8.2

14 V 1.00

Hardware, locks and tools.
Savannah Sugar Refining

17%

5.7;.

5.9

65
29%

3.1
3.4

In New York,

ited

extensions.

5.25.

—

Locks

and

Schuster

builders'

*15

1.00

2.60

17%

Williams, Inc

2.45

43%

0.45

6.3

and

table

0.60

*41

;

covers

even

Kansas City,

is political
2.4

the

Searle

5.0

Denver

2.20 :

____

safety, that is, through

over
—

8.000,000 in New York
their relativey low-

and

income

3.2

category.
By "political
safety" I mean that these 3,000,000
people
are
"voters" — and
you

47%

2.1°

know what I

1.00

mean.

Pharmaceuticals

Sears Bank& Trust Co.

Then

(Chicago)
Sears-Community State Bank
(Chicago)
__

2.40

3.2

Name

changed to Scars Bank &
Trust Co. in January 1957

Seatrain Lines
Transports

■

*16

5.0

2.30

4.6

use

expenses

short

and

term

needs, reserving other savings and
investment media for other

which

purposes,
a

will

into

bit

the

3.00
0.40

76
8%

later on.
But, remember,
Savings Bank Nest-Egg con¬

stitutes your "emergency

Savings

1.60

3.6

f0.59

about

which

deal

great

the

recent

great

spreading of risk away from Real
Estate, which used to attract the
greatest proportion of assets. Now
much of the Savings Banks' assets
are
in Government Bonds.
But,

there

interest

institutions

pursuant

Act

banks

as long as the institution uses
one-third of its cash receipts for

its

repurchase of Share Accounts.
So, even despite the Insurance
Corporation there is no real guar¬
anteed liquidity. The depositor ac¬

tually has his. money invested in
home-financing association, the

bulk of whose assets

the

Medium
always a

and

many

the
Federal
Associations.
were

1933.

created

Home-Owners
Some

the

chartered by

finance small homes. All borrowers

and depositors are members of the

Savings Loan Association. There
are
share capital and share ac¬

the sole

and

How

the

about

Federal

Bank?

this

far

from

constituting

true depository.

Now, the net conclusion I want
giye you regarding liquiditythat

long

the

okay.

Illiquidity wiU prob-^
possibly, come in under

But

ably,

the converse, that
comes

is, when money
slowly than it goes

In that case you can only get

out.

thousand

first

your

dollars

then wait at the back

and

deposits in
Savings and Loan

Their amount is unlimited.

Regarding their insurance, tbev
are
protected by a mutual funds
pool which is called the Federal
Savings and Loan Insurance Fund,
which, it is claimed, has a greater
amount of capital in proportion to
its deposits than has the Federal
Deposit Insurance Corporation.
The rate of interest paid to de¬
positors has never been less than
2%, which now has been raised—

Saginaw

•_

Corp._

You do not have

line for the rest.

creditor

position like the Sav¬
ings Bank. The final word is that
there is likely to be trouble in
case
of a
real boom and bust
a

period!

Joins Fusz-Schmelzle
(Special to The Financial Chronicle)

LOUIS, Mo.—Jules H. Stei-

ST.

Boatmen's

Inc.,

members

the

Exchange.

(Los Angeles)
Security Insurance Co. of
—

New Haven

Security National Bank of

With Marache* Dofflemyre
(Special to The Financial Chronicle)

ANGELES, Calif.

LOS

Davidson

Dofflemyre

Spring

Street,

with

Co.,

f0.90

25%

Rochester

f1.83

45%

wood

3.5

4.0

(N. C.)—_
Security Trust Co. of

products, lias prospered through forty-seven

fiber
years

Security Trust & Savings
Bank of San Diego

0.725

27%

0.70

12%

5.5

*24

1.20

3.5

of its corporate life.

Conservative financial policies, strict

2.6

Seismograph Service Corp.__

wallboard

manufacturing and quality controls, research and

development

Surveys for oil and gas industries

Selected Risks Indemnity Co.
Diversified

Seven-Up

Bottling

Co.

(St.

Louis)
Bottler

programs

combined with honest dealer policies inspiring

the

insurance

friendly cooperation of its more than
0.60

7.1

1.50

20%

0.50

4.5

2.00

25%

7.8

plans for the future development

0.20

-3%

5.3

and

sponsible for Upson's strong position and

beverages

Shakespeare Co.

16,000 dealers are re¬

7.3

carbonated

healthy growth.

Fishing reels, rods and lines

Shaler Co.

Management's present emphasis on product diversification,

Vulcanizers

Shepard Niles Crane & Hoist
Electric

and

cranes

Sherer-Gillett
Manufacturer

hoists

Co
commercial

refrig¬

eration

Shuron

-y

General line of

fl.39

$8%

3.6

encouraging increases in industrial

1.60

27%

5.8

presents a strong

market and

demands for Upson's products,

ophthalmic goods

Sibley, Lindsay & Curr Co.__
Rochester, N. Y. department store'

Sick's Ranier

of the domestic mass housing

pre-fab markets, the rapidly expanding foreign

Optical Co

Brewing Co

basis for confidence in 1958.

0.20

6.7

Formerly Sick's Seattle Brewing
&
Malting
Co. Name changed
April 1957.
"Ranier" and
*

.$
"Brew 66"

Details not complete

THE UPSON COMPANY

beer

to possible longer record,

Adjusted for stock dividends, splits, etc.
adjustment ..dividend of 40 cents

y Includes

establish

same

payment

schedule

for

paid

Dec.

common

and

1956

preferred

dividends-.

Continued

page

Ralph

634

South

Pacific Coast Stock Exchange.

Upson, world leader in the manufacture of laminated

Greensboro

—

Marache,

members

A BASIS FOR CONFIDENCE

Stock

Midwest

2.1

personal loans

Co.,

Building,

Bank

Instalment financing and

Security-First National Bark

out

of the

ber is with Fusz-Schmelzle &

your

money

flowing in more rapidly than it is
being withdrawn, then you are

secu¬

rity of such Share Accounts.

invested in the trends op¬
erating in the real estate market,

be made to holders of

Share Accounts

based

money

counts consisting of amounts paid
for that purpose, plus dividend.
can

are

investments in mortgages and real
estate.
Hence, he. really has his

the State;
some by the Federal Government.
They have a double purpose: To
provide a savings medium and to
are

until
There

to real¬

you

ize,

for

applied

default, I want

dollars"!

Savings and Loan1
Now

not

are

technical default.

3.9
4.6

there

there is

Second National Bank

Securities Acceptance

the

Savings Banks
for emergencies like possible ill¬
ness

provisions

ships

Second Bank-State St. Tr. Co.

System.

regarding

0.50

freight cars

should

You

Loans

insurance

(G. D.) & Co

been used,
Depression

large number of depositors—

State

St. Louis,

Surety Co

Diversified

invoked, but prac¬

Now, a word about safety of the
Savings Bank deposit. First, there

now

Seaboard

never
in the Great

Scruggs-Vandervoort-Barney
Department stores;

can

knitting machinery
Scranton Lace Co
curtains

not

5.6

^
19

lim¬

of the early thirties.

Builds

Lace

which

14.6

—

are

this

tically this has

Vacuum cleaner attachments

Scott &

dept. stores

Scott & Fetzer Co

deposits

$10,000, but you can ex¬
by depositing in the
name
of dependents in trust in
separate pass-books. Technically,
there is a 30-day withdrawal stay

hardware

& Co

(Ed.)

Three Milwaukee

2.00
fO-99

53
17

definite ceil¬

Department.

Loan

ceed

-Georgia operator

Schenectady Trust Co. (N,Y.)
Schlage Lock Co

These

&: real estate maps

insuranee

Fire

Sargent & Co.^

There

questions:
namely,
Savings
and
Loan

sell

80 "

head¬

word about the rate of

Then

)

••

26y2.80

Sanborn Map Co.———

Now,
return.

"over-thecounter" without selling commis¬
sions to salesmen, and with the
bank
taking care of premiums.

(water)

Savings Bank which,

which

ance

*•
-

Mutual

you can call a money-de¬
partment store. Among its varied
functions is the sale of life Insur¬

■

Money Department Store

Then, we get to another impor¬
place for your funds, that is

the

1.60

all

and

"blue

tant

1.9

hitch

few flaws in

Loan

Federal to repay the investor all'
his money on demand does not
constitute a default, and insurance

other

Diversified insurance

St.

worries

today,

1.20

that

words

Abuse, such as "over-sell¬
ing," "over-promotion" and sell^ing to the wrong people.

•

10.7

5.25

Livestock

all

chippiness,". in ing imposed by the State Banking
"window-dressing," Board, but the return in New York
which I have described; (2) UnCity is now 3% to 3%%, subject
wieldiness.from size in some cases, to consultation
witfr the Banking
other

broadcloths, .twills

St. Croix Paper

all

portfolio;

diversification; and, above all, ob¬
jectivity. Disadvantages are: (1)

8.2.;

than

deposits are now guaranteed
by the Federal Deposit Insurance
Corporation, so you are removed
aches.

bleachers

Sagamore: Mfg. Co
Sateens;

your

important

from

Sales

1.00

and

Federal Insurance and Loan Cor¬

your

expert

which prevents them from turning
around and maneuvering; and (3)

railroad

Safway Steel Products, Inc._
Manufactures

professional

are

full-term

Excessive

5.0

0.20

royalty Interests

Saco-Lowell

95%

fl.78
,

Royalties Management Corp.
gas

"know-how";
management

Affiliated with producers of many
nations
'
--

and

25%

Investing Co-operative.
two categories of these:

The open end and closed end. The

4.4

1.50

are

advantages
29

Royal Dutch Petroleum (NY) 4 10

Oil

in the South

Tool Co. Inc

Manufacturers

There

1.15

Rose's 5. 10 & 25c Stores. Inc.
Ross Gear &

call

1957

poration in that the failure of the*

Savings

There
..

Paymts. to

Years Cash

46
We must mention

Based on

Quota-

secutive

145 stores

page

the

Approx.
% Yield

„

Extras for

Operates

from

and Never Ceases

No. Con-

(1603)

LOCKPORT, NEW YORK

the

The Commercial and Financial Chronicle

Continued jrom page

the
second
consecutive
week,,
yielding about 2,099,000 net tons,

tion

The State of Tiade and Industry
reached

44%

its

Corp.

Chrysler

the

model

changeover.
Elsewhere,
General Motors Corp. produced no
the

cars

past week for virtually

the third consecutive week.

"Ward's"

for

erations

American

op¬

Motors

concerned, but demand is not

ing added.
savings

half

the past

over

and

decade,

increase, it stated, pushed

cumulative

individual

savings

about $679,900,000,000
June

000,000

against
a

mission

about

16%,

the
few
remaining
prices are fading.
A
premium price producer of structurals lowered the price $3.50 a

unincorporated
funds and

The'

The

individual

personal holdings

com¬

agency

ton

business,

r u s

year

income and

pansion
said

attributed

during

higher

individuals'

personal

for

second

ex¬

debts.

factors

accounted

the

the
half

reduction in the

seasonal

measure

non-profit institutions.

commission

this

savings of

large

from

the first quarter
savings rate.

Operating public utility

the

level

of other

eastern

have to

Outstanding

Skil Corp.

"Steel's"

dropped $4.16
a
from
the
preceding
This is

the seventh

ing

decline, plac¬
composite at $42.i 7 a
ton, the lowest mark since

erating

July, 1955.
Prices
most

turned

much

down

offers

will

by consumers as by
Mills say they are

purchases.
well

broker

82%

ice

Iron

tons

steel

and cast¬

The

capacity for

ingot

ton

81.6%

beginning

for

steel

and

capacity

of Jan.

UNLISTED SECURITIES
listed
on

the

given orders in the

the unlisted market.

tion

of 133,495,150

Trading department has immediate

country

active

our

all

through its private

sections

wire

tons.

year

ago

100.9%.

operating rate is not

capacity

090

Electric

The

STOCK

inquiries.

principal

stock

120 So. La Salle St.

Chicago 3

Broadway

Other

based

are

1, 1956.

continued

electric

energy

was

11,564,000,000 kwh.,
the Edison Electric

its

the

lower

past

trend

Russ Building

The

past

the

output de¬
133,000,000 kwh., below
that of the
previous week but
advanced by 222,000,000 kwh., or

2.0% above that comparable
1

1956

week

over

and

925,000,000

the week ended Oct.

Manufacture

Loadings
Latest

distribution

and

Sonoco Products

kwh.

Loadings of
the

week

Co.——__

above

the

Following

week
cars,

and
or

and

Company

(Incorporated >

freight for
Sept. 28, 1957,
14,332 cars, or 2%
week,

American

rn:i&«

Model

CHICAGO

PHILADELPHIA

135 South LaSalle Street

Telephone: FI 6-4600

decrease

1956

76,269

lower than the

cor¬

Teletype: CG 640 & CG

2860

Teletypes: PH

606 &

est

6-3717

to More Robust

Production

This

at
as

1958

607

week

cording

ended

Oct.

"Ward's

Reports," held to
lower

rate

4.0

1.75

2.7

0.90

16%

5.4

f0.79

16%

4.8

0.80

1418

5.7

0.70

14%

4.7

0.40

5.9

2.00

37%

5.3

1.12

4.0

3.00

5.8

Corp.

1.35

public utility

Operating

Southern

Bakeries Co

Southeastern

So.

baker

California Water Co

Water,

electric

Operating

and

ice

interests,

company

Southern Colorado Power
Electricity supplier

Southern Fire &

Casualty Co.

insurance

So. New England Tel. Co
Communications services

Southern Union Gas Co
Natural

production

gas

and

dis¬
i.

■

Weaving Co

Narrow

fabrics,
webbings

tapes

and

Southland Life Insurance Co.

Life, health and accident

1.4

insurance

Southwest Natural Gas Co.—
Southen natural

Southwestern
Wholesale

•

0.20

2.00

40%

1.16

20%

5.7

f0.49

14%

Drug Corp.___

3.5

4.9

drugs

Electricity supplier

Southwestern Investment Co.

1.60

1.16

107

1.5

5.8

1.50

4.7

1.00

7.1

1.50

5.0

1.20

33%

3.6

2.00

45%

4.4

Non-participating life
i

Operating public utility

Speer

Carbon

Carbon, graphite and electronic
products

Spindale Mills, Inc
Yarn

shirtings

Spokane
road

and

dress

International

gooas

Rail¬

Co.

Northwestern

carrier

Electronic

components

Springfield F. & M. Ins. Co.
Multiple line insurance

■'

■'•'t

Springfield Gas Light Co
Massachusetts

operating

104 ""

and

corn

2.70

|1.33

1.80

soy

'47

5.7

utility

Staley (A. E.) Mfg. Co

1.90

24%

5.5

56%

3.4

beans

Operating public utility

(Detroit)
bonding

and

fire

and

insurance

Standard-Coosa Thatcher Co.
Yarns

and

Standard
of

Fire

New

7.7

2.50

4.4

4.00

6.2

Co.

Jersey
insurance

Screws and screw machine products

Varnishes

and

Chemicals, Inc.

0.28

4.5

0.70

12%

5.7

2.25

7.5

2.70

43%

6.2

*32

1.60

3.6

0.90

15%

5.7

lacquers

Stange (Wm. J.) Co
Food

colorings and seasonings

Stanley Home Products, Inc.,
(Nonvoting)
waxes,

and

polishers,

sells

and

■

■■

brushes,

personal

toiletries

Stanley Works
Hardware for

building trades, etc.

State Bank of Albany
State

CI.

Loan

substantially

Finance

Corp.,

Loans

Insurance

Standard-Toch

ac¬

1957,

1.00

threads

Diversified

Automotive

26
and

Southern

finance

states

business,
~

manufacturers
*

Continued

4.6 -V

supplier

gas

Southwestern Elec. Service—

Week

Automotive output for the lat¬

1500 Chestnut Street

Telephone: Rlttenliouse

Chicago real estate

Standard Screw Co

Automotive Output Held
A Low Level the Past Week
Prelude

2.50

Parkway Building

Southeastern Telephone Co._

the

Rail¬

6.3 ;/
'.

(Charleston)

Manufactures

responding week in 1955.

H. M. Byllesby

12%

Co.

corresponding

9.4%

3.8

Carolina National Bk.

marine

revenue

the

0.80

■.Operating public utility

South

Casualty,

reports.

below

26%

and paper products

Paper

the

Loadings for the week ended
Sept. 28, 1957, totaled 739,266 cars,
a decrease of
92,382 cars, or 11.1%

Securities

...

Standard Accident Insurance

Period

preceding

Association
roads

1.00

Processes

ended

advanced

Over the Counter

Decline

Preceding

Specialists in

;

South Atlantic Gas Co
t

8, 1955.

Rose

Week

Modest

.4.9

items

Stamford Water Co
Car

24%
:

3.7

Sprague Electric Co

week's

creased

Cities

3.1

week
of

preceding week.
San Francisco

Southwestern States Tel. Co.

by the electric light
industry for the week

according to
Output

other

1.20

Sales, financing and personal loans

Saturday, Oct. 5, 1957,

estimated

exchanges

New York 4

And

amount

and power

and

per¬

Past Week

Institute.

EXCHANGE

The

Output Declined Further

distributed

INCORPORATED
YORK

turbines

com¬

capacity of 128,363,-

The

ended

NEW

Southwestern Life Insur. Co.

system

A. G. Becker & Co.

1956.

of Jan.

offices and connecting with other

We invite
your

annual

tons

6.6

and produc¬

centage figures for 1956

access

markets

trading houses.

Member

ago

parable because capacity is higher
than

over-the-counter

linking

month

81.9%

was

2,097,000

The

Quotations

fountain

tribution

placed at 2,483,000 tons

request.

Our
to

well

attention

soda

2.15

Diversified

the actual weekly production was

Prompt, efficient

41%

f0.90

1, 1957.

For the like week
rate

2.75

and flavors

Engineering Works

Southern

the

2.7

op¬

companies,

industry's ingot production

annual

6.1

Mining machinery

Steel

the

rate for the weeks in 1957 is based

tons

25%

Snap-On Tools Corp.—18

South

week ago.

1.55
0.20

valves

Smith

(revised)

fruits

cream

and

net

compared with 82.6%
capacity, and
2,115,000
tons

Heavy manufacturing,

price
e e I

and

the week

5.6

—-

Smith (S.Morgan) Co..

that

average

for

castings,

.....

7, 1957, equivalent to 2,088,-

000

supplied with scrap for their

was

rate

Oct.

In the week ended Oct.
6, out¬

ings

base

finished

announced

capacity

present rate of operations.

put of steel for ingots

Oct.

having 96.1% of the steelmaking
capacity for the entire industry,

being determined al¬

are

6.5 '

1.50

5.6

...

ended

American

The

(J. Hungerford) Co.—

arithmetical

Institute

21%

tools

Manufacturer

re¬

since the week ended July 17.

the

gross

1.20

2.00

Chemical fertilizers

Smith

mar¬

dropped 16 cents to $146.03
ton. It had held at $146.19

consecutive week of

1957

mechanics' hand service tools and

week

composite

scrap

ton

the

June 30,

Smith Agric. Chemical Co.—

consider¬

inventory

back into

come

the

Ill

scrap. In the week ended Oct. 2,
"Steel's" price composite on steel-

week's level.

Such

Paymts. to

1957

market

livestock

Iowa

ket for steel.

the price front

is the downhill movement of steel

making

inventories

extent."

tion

June 28,

30,

1957

Sivyer Steel Casting Co._,

still

are

June

Sioux City Stock Yards

haps near the close of this year
or early in 1958.
When inventor¬
are exhausted, consumers will

producers.

slump

quarter

their

able

but

gross

savings
and

jump in savings in the first
of

end

Sierra Pacific Power--—..

ies

consumers

12 Mos. to

% Yield
Based on

Quota-

duction is viewed by optimists as
a bullish factor for later on, per¬

$662,500,-

earlier, the

year

estimated.

defines

at the

secutive

Divs. Paid

pointed
out
living off

premium

Commis¬

sion survey showed.
The

publication

that

Se¬

Extras for

Years Cash

Portable

The

Approx.

Including

area.

strength and direc¬
tion of steel prices are seen in
tool steels which are rising 3 to

rose

Exchange

Cash Divs.

visions.

The current

$9,200,000,000 during the first six months
of 1957, more than in any first
curities

service

think
of
cutting standard prices, the
weekly magazine of metalwork-

Corp. last week.
Individual

far

■/

and Never Ceases

No. Con-

the Birming¬
brought about

plants

district have

;

Where Trading Starts

U. S.
Steel Corp.'s Tennessee Coal &
Iron
Div.,
the South's largest
steelmaker, has laid
off about
2,000. Most of the other layoffs
are
in plants of Republic Steel
Corp., U. S. Pipe & Foundry and
H. K. Porter Company Inc. di¬

soft that producers would

Studebaker-Packard

and

Corp.

the driver's seat

steady

reported

working
ham

47'

page

metal-

and

5,000 layoffs in the

and

demand

mills

steel

jrom

Thursday, October 10, 1957

Fabulous Over-The-Counter Market:

Production cutbacks in iron and

production
arc
moving
sideways,
"Steel"
Magazine declared on Mopday of
the current week. Buyers are in
Steel

plant

district

among

observed.

Previous Period

upturn was not enough to offset
Ford
Division's
shutdown
for

and

Continued

varia¬

operating rates, this trade weekly

81.6% of Ingot Capacity This
Week, One Point Under

weekly production level.
However,

Scheduled

Production

Steel

1957

peak

considerable

there

but

...

(1604) '

page

Details not complete as to possible longer record,
t.Adjusted for stock dividends, splits, etc.

~..(i

Volume 186

Number 5680

The Commercial and Financial Chronicle

...

(1605)

Cash Divs.

Fabulous Over-The-Gounier Market:
J

Never Ceases

Cash Divs.

secutive

Extras for

secutive

12 Mos. to

Years Cash

Based

Quota¬
tion

June 28,
1957

June 30.
1957

Divs. Paid

Torrington Mfg. Co.—_

1Paymts. to
June 30,

1957

277%

Manufactures

merce

Trs.

Fork-lift

Stearns Manufacturing Co.

2.20

0.10

3.7

ing

equipt.

and

items

associated

2.2

packets

and

Life,

1.85

22%
..

*12

Stifel (J. L.) & Sons, Inc.

8.2

3.6

Troxel
0.20

3.5

5%
•

Dies

fabrics

and

Coal

Stouffer Corp.

Twin

6.4

f0.97

20%

4.7

1.60

25%

6.3

2.25

Writing paper

Sttrawbridge & Clothier

1.60

46%

3.4

7.7

Union Trust Co. of Maryland
Union Wire Rope Corp

2.00

4.5

fl.09

5.0

37%

4.8

Bank

1.30

26%

0.90

17%

5.1

1.10

80%

56%

Perishable

5.3

wrenches,
forgings

220

store

Insurance
3.9

56%

0.30

United

22.00

635

3.5

ical

1.30

32%

4.0

1".

7.3

16%

1-20

0.60

18%

3.2

Local

bus

4.00

Lends

1.00

10
building

>1'

and

2.7
6.0

"U.

2.00

18%

1.80

Starting

0.80

7.3

(Cleveland)

61%

2.45

4.0

(L. A.)

*32

1.55

40%

3.8

2.00

43%

4.6

2.5

Union Gas System, Inc.—a—
Natural gas utility

1.32

24%

f2.50

3.2

Union

1.10

17%

Denver

4.0

0.90

16%

5.5

0.40

8.4

1.00

|2.90

diamonds

*49
~

—

;

9.1

Union

1.40

4.4

31%

Metal

2.00

3.8

2.60

65%

4.0

0.55

5.5

radiation

Natl.

Realty & Investment Co.

oils

1.25

1.80

10%

6.9

160

11.00

*49

■

4.0

Crude

oil

and

0.60

10.00

1.00

34%

2.30

1.25

20%

6.7

65%

4.9

0.30

5.7

1.20

21%

5.6

1.425

29%

4.8

0.05

1.1

1.20

16%

7.4

specialties

Matches and candy

multifocal

1.30

37%

2.25

(THE)

Exterior

3.5

distributor

and

opthahnic

lens

blanks

glass frames

eye

UPSON

and

interior

fibre

wall-

3.0

•

See

Company's advertisement on page 47.

Manufactures

63%

0.80

board

Upson-Walton (The) Co

Gas Corp. of

1.3

wire rope,

blocks and rope

11%

0.60

Details not complete

to possible longer record,

2.1

possible longer record,
t Adjusted for stock dividends, splits, etc.
Details not complete as to

Continued

2.6

390

Third National Bank & Trust

Ohio)

—

Third National Bank & Trust

(Mass.)

Thomaston Mills

jl. CAl/un and Company

of cotton products

f0.42

Thompson (H. I.) Fiber Glass 10
Insulation,

fiberglass

far

Hi Temp
reinforced

plastic parts

Thomson Electric Welder Co.
Electric

2.00

far

Investment Bankers Since 1912

7.4

Incorporated

machines

welding

300 Adams Building, Inc.—
Chicago office building

3.00

0.725

15%

0.40

3.75

1.00

16%

1.80

6.4

Industrial Securities

6.1

*11

•

5.8

Public Utility

1.8

♦

4.6

.Municipal

5.3

Thrifty Drug Stores—
California

Underwriter: Concord Fund

finance—personal loans

Consumer

Time, Inc.
Publishers

"Fortune" &

"Time,"
"Sports Illustrated"

t r

dCo..

"Life,"

Timely Clothes, Inc

/faf Member

suits, coats, etc.

Men's

Inc.—

Tinnerman Products,

New York Stock

"Speed Nuts"

Titan Metal Mfg. Co.—
Title

1.20

4.4

rods

and bronze

Brass

2.40

4.8

1.80

7.4

1.50

28%

5.3

Aurora, 111.

Milwaukee, Wis.

Philadelphia, Pa.

6.3

Concord, N. Ht]

Minneapolis, Minn.

Portland, Me.

Decatur, 111.

Corp. of

Louis

—

Moline, 111.

Rockford, 111.

Flint, Mich.

Nantucket, Mass.

South Bend, Ind.

Spokane, Wash.
Waterloo, la.

& Trust Co.

(Los Angeles)
insurance

Tobin Packing Co
Meat

packer

Tokheim
Gasoline

BOSTON
'9

lawn

1.35

26%

mowers

Corp

3.00

102%

2.9

Gary, Ind.

Omaha, Neb.

t0.965

24%

3.9

Kansas

Peoria, 111.

City, Mo#

and

Madison, Wis.

tools

Details not complete ,as

t Adjusted

pumps

stationary power

CITY^

CHICAGO

Corp.

Toro Manufacturing
Power

1.00

Toledo Trust Co

NEW YORK

insurance

Title Insurance
Title

St.

30 Federal Su

122 S. LaSaEe St.

44 Wall Street

Title Insurance

Title

a49

Insurance

\j ,

Exchange (Associate)

of Min¬

Co.

Insurance

Midwest Stock Exchange]

Exchange

American Stock

nesota

Title

drug store chain

Time Finance Co. (Ky.)

to possible longer

for stoc^ dividends,

Including predecessors.

splits, etc.

record,
!

5.1

tackle

fittings

natural gas

6.1

23%

3.20

5.0

*16

1.60

103

2.9

store

Nashville

■

t Adjusted for stock dividends, splits, etc.

6.5

*11

Thalhimer Brothers, Inc

Holding company

production

Makes cotton yarn

■

Utilities, Inc.—L

Manufacturer

*32

Louisiana, class B,

7.5

13%

1.00

Textiles, Ine.

f 2.22

(Del.)

Universal Match Co

Pitts¬

Union Oil and

■

and metal

United

and

UnivisLensCo

town, Ohio

gears

Texas Natl. Bank (Houston). *33

fabricators

17.5

Inter-city motor carrier

Union Natl. Bank of Youngs-

Terry Steam Turbine Co

Fiberglass,

5.2

U. S. Trust Co. (N. Y.)

poles

Bank

burgh

6.7

13%

0.90

Iron castings

Wide range

dials, panels and name-

U. S. Truck Lines

Manufacturing

distribution

Power

Union

Malleable

Co. of Springfield

•

—_

industrial

Real estate

5.0

Co.

Manufacturing Corp

Co. (Dayton,

plates

U. S.

6.3

Manufacturing Co

Chucks, hoists, and castings

transmission

Richmond department

2.9

(

silver,

Lumber

sources,

5.4

carrier

Third Natl. Bank in

63%

1.00

Holding company, land and rnin-

Wire

Corp

reduction

gold,

United Steel & Wire Co.—

—

2.00

instruments

Tennesee Gas Transmission..

and

2.00

•

United States Testing Co

Refrigeration compressors, etc.

Haute

watches

Page 51.

Union Commerce Bank

Tenn., Ala. & Georgia Ry. Co.

Turbines

11%"1' 5.5"

Union Bank & Trust

Grey Iron alloy castings

Terre

0.65

Business stationery

8.3

2.50

Taylor Instrument Cos

Natural gas

4.3

*47

U. S. Natl. Bank (Portland).
S. Radium Corp

Uarco, Inc.—-—-

6.6

21%

1.40

and poles

common

26%

United States National Bank

•

*22

Taylor & Fenn Co

Railroad

1.15

Research and tests textiles, soaps,

Taylor-Colquitt Co.

scientific

•

goods-

rubber

4.1

ranges

-of

Second Table

10.8

products

Tecumseh Products

7.9

paper

eral interests

Payers From 5 to 10 Years Appear in the
15

Tappan Stove Co

Mfr.

0.90

5.9

18%

1.10

!14

Railroad ties

30%

insurance

Phosphors,

and

Tampax, Inc

Gas

—i__

4.1

1.45

cotton

J
2.40

and other paper products

United States Loan Society—

4.0

100

operator

Miscellaneous

3.2

etc.

of envelopes,

U. S. Fire Insurance Co

Over-The-Counter Consecutive Cash Dividend

Syracuse Transit Corp..

ice,

Diversified

Bagley Corp

small tires

plastic)

Storage

(rubber

hose

Manufactures

Cold

U. S. Fidelity & Guaranty Co.

.^Commercial refrigerators

Wholesale food distributor

Swan Rubber Co.

5.7

f0.29

Diversified insurance

Tyler Refrigeration Corp—

1.9

245

4.70

;20

Super Valu Stores, Inc

23%

Envelope Co

cups

large annuity business

Also

■

Propane gas distributor
Life.

|1.35

Manufacturer

gears

>,Manufacturers

Suburban Propane Gas Corp. :ii
Sun Life Assurance.;

•»

States

Car-icing,

chem¬
and refinery equipment

drop
■■■

Corp.

3.0

Tyer Rubber Co

Fabricated metal products;

commercial

Greeting cards

2.20

utility

Theatre and office

and

United Printers & Publ., Inc.

insurance

and

1.80

•

cutting
tools,
tools,
such
as

Connecticut operating utility

City Fire Insurance Co.

Clutches

metal

service

United Illuminating Co

U. S.

gas

and

United Drill & Tool—

automotive

slings

1.4

3.00

Manufactures wire, wire rope

5.0

Twin Disc Clutch Co.—

Large Philadelphia department

Struthers Wells Corp

of Memphis

2.00

health

Manufacturing Co

Diversified

1957

Union Planters National

insurance

and

June 30,

4.7

Bicycle saddles

Electric

2.5

12%

f0.32

1957

hard

Tucson Gas Elec. Lt. & Pwr._

Restaurant chain

Strathmore Paper Co

—

Trust Co. of Georgia

lumber

and

1957

10.98

' J'

4.6

26%

f 1.21

Stonega Coke & Coal Co

Co.

Diversi.ied

textiles

Cotton

Stonecutter Mills Corp., CI. B

12 Mos. to
tion
June 30, " June 28,

Based on
Paymts. to

products

accident,

Quota-

•

Trinity Universal
Company

......

0.40

secutive

Divs. Paid

truck

Manufacturers

boxes

Years Cash

equipment

Corp.
Labels,

1957

Approx.
% Yield

Extras for

No. Con-

June 30,

blower

Trico Products Corp
*

Lithograph

Stecher-Traung

machinery,

Travelers Ins. Co. (Hartford)

Manufactures concrete block mak¬

Paymts. to

28,

1957

Wire

*35

June

30,

1957

wheels and fan blades

Towle Mfg. Co

Townsend

(Richmond,

Va.)

June

„

Towmotor Corp

2.2

State Planters Bank of Com-

Years Cash

Sterling silver tableware

6.00

tion

Divs. Paid

State Natl. Bank of El Paso-

12 Mos. to

Based

% Yield

Including
No. Con¬

Quota-

Including

Extras for

Approx.

Cash Divs.

% Yield

No. Con-

Where Trading Starts and

Approx.

Including
,

Wausau, Wis.

page

The Commercial and Financial Chronicle

(1606)

The

Continued from page

Industry

output declined
below that of the previous week
Last week's car

1958

production

moaels.
Last

by 28,827 cars, while truck output
by 3,195 vehicles dur¬

totaled

week's car output

decreased

units and compared with
(revised) in the previous
The past week's produc¬
tion
total
of
cars
and
trucks
amounted to 28,772 units, or a de¬
cline of 32,022 units below that
of the preceding week's output,
22,725

In the correspond¬
59,367 cars and

ing the week.

51,552

ing week last year

week.

assembled.

19,926 trucks were

Last

week the agency

Stocks Both Domestic
And Foreign Lower in
Oil

Crude

Latest Week

with

oil

crude

nation's

The

reported

slocks

declined 802,000 barrels during
the
week
ended Sept. 28, the

6,047 trucks made in
the United States. This compared
and

were

United

9,242 in the previous week
19,926 a year ago.

States Department of the

the

Continued

brought crude stocks to 282,363,000 barrels.
Both domestic and
in

the

Where

Feb.

ended

rise

seasonal

This

week.

Utah

There was a 2%
previous week
in petroleum output, but a yearto-year decline of 2% prevailed.
Bituminous coal output for all of
1957 is
000

fractionally

Shipments

Lumber

CORPORATION

filled

the

the like

low

week of

Declines

Teletype NY 1-4581-2

WH 4-6627

25.00

600

4.2

1.45

4.8

Virginia Coal & Iron Co.____ *41

6.50

105

6.2

Oct.

Tools

Wis.

Sheboygarr,

St. Paul, Minn.

Milwaukee, Wis.

Members

Auto

278

the

Warehouses

Sand,

outdoor

and

liabilities

gravel,

lime

Bros.

MEMBERS
DETROIT

NEW

STOCK

YORK

STOCK ^EXCHANGE

EXCHANGE

AMERICAN

•

SOUTH

CHICAGO

•

STOCK

SALLE

STOCK

Wire

DETROIT

May

under

Food

Price

Sharply

third

its

28,

KANSAS

CITY

TELETYPE
CG

Index

consecutive

lowest

when

WIRE

RAPIDS

CLEMENS

were

SYSTEM COAST TO COAST

index

the

0.80

1.2

2.25

9.4

2.00

3iy2

6.3

Insur-

National

Co. (Evanston, 111.)__

producer

Foundry.

Cash Dividend

Over-The-Counter Consecutive

stood

Page 51.

Manufacturer of paints,

pounds,
glas:s

Weber

rise

level

last

cost

the

represents

pound

and

meats

street

and its chief function

use

the

general

trend

lowest

the

far

1957

when

285.07.

at 286.96

lowest

dunr>«

MEMBERS MIDWEST STOCK EXCHANGE

1,00

i2y4

8.2

0.75

6.3

1.00

17%

5.7

0.60

15%

3.9

7.6

low

the

The

the

L ; 17

Sanitation

Co.

products

Steel

alloy castings
West Ohio Gas Co
Natural

gas

■

Dun

com¬

distributor

;

occurred

index

*34

—

Continued

1.20

and hold¬

operating utility

Textile

ice

1,7%

7.0

5.4

1.20

26%

4.6

2.59

<37'

3.9

1.20

32%

3.7

manufacturing,

2.70

100

f0.87

1.2

1.95

33%

5.8

2.20

38%

5.8

f 1 02

West Virginia Water Service
Wholesale gas; retails water and
■

(N. Y.)

(Toronto)
Fire,

marine,

aviation,

casualty
Western

Casualty
Company

auto

and

Surety

Multiple line, fire & casualty and

fidelity and surety bonds-

Western Electric Co.
Makes

equipment for A.

Western Life Insurance Co.._

the

Participating & non-participating

Supplies

electric,

Holding

company

Tor

Co5._
operate.

ing electric utility
•

Details

not

t Adi"sted

water and

Western Massachusetts

season

page

gas,

telephone service

Expectations

2.7

T. & T.

Western Light & Telephone-

week..

48%

5.3

West Point Mfg. Co

de¬

index stood

5.4

2.55

ing company

1957.

Sept. 23 and 297.64

levels

17%

West Penn Power Co
Both

■18%

0.95

and

1.40

West Mich. Steel Foundry—

last

that the crop would exceed earlier
7

.12
'

"■

Telephone Co.__l

Formerly West Disinfecting
Name changed March 1957.

price

Following renorts on favorable
growing conditions and expanding
harvests, most grain prices fell to
the

6.9

•

installation

Westchester Fire Ins.

year ago.

SWIFT, HENKE & CO.

?y4

Diversified insurance

wholesale

level

May

clined to

1926

0.50

Western Assurance Co.

decline

Sept.

5.9"

—

West ChemicalProducts

1957

commodity

continued

daily

.The

lighting systems,

West Coast

Bradstreet

SINCE

13%

soda fountains

and

Maintenance

sum

per

the

flat

& Fixture.

Wells-Gardner Co._

modity price index fell to 282.10,
s

fixtures,

Store

milk, cof¬

sugar,

Last Week Registered Lowest

week.

distributor

and

Showcase

Welsbach Corp., class

com¬

m0.80r

varnishes,

industrial coatings, chemical com¬

$6.11.

price

show

The

CHICAGO

Watson-Standard Co.

and raisins. Lower

Point

6.9

Makes metal working machinery

Wholesale Commodity Price Index

-•

accident and health

Electronic manufacturer

food prices at the wholesale level.

♦

—_

since

foodstuffs

raw

general

Trading

SPECIALISTS

3.8

2.00

Second Table Starting

week.

level

wholesale

hams,

cocoa, eggs

The

650

OVER-THE-COUNTER

3.8

40y2

Payers From 5 to 10 Years Appear in the

flour, wheat, corn, rye, oats,
barley, beef, bellies, lard, cotton¬
seed oil, steers, hogs and lambs.

MILWAUKEE

Retail

56%

f 1.52

Operating public utility

Higher

fee,

total

PRIVATE

12.13

Washington Oil Co

of 2%.
week

MT.

6.0

and springs

ance

Life,

Lower for

figure at $6.12,
with $6 a year ago, or

pares

STREET

GRAND

2.75

7.0

as compared with
preceding week.

The current

EXCHANGE

at, ILLINOIS

ANdover 3-5700

concrete

and

(S. D.) Co

Washington
,

sharp declines in the
preceding weeks, placed the

index

EXCHANGE (ASSOCIATE)

TELEPHONE

0.14

5.8

storage

Washburn Wire Co

were

NEW YORK

3.1

Printing papers & allied products

dropped to $6.12 on
Oct. 1, from $6.17 a week earlier.
This drop of 5 cents in the week,

McDowell

MIDWEST

2.50

Paving contractors

Warren

index

two

Warehouse & Terminals Corp.

added to the

Straus, Blosser

.11.08

Owning and operating apartment
house in Philadelphia

compiled by Dun & Bradstreet,
Inc., fell sharply the past week
The

Listed & Unlisted Securities

The wholesale food price index,

for

U nderwr iters—Brokers

2.2

Walnut Apartments Corp

Third Consecutive Week

Teletype CG 146-147

451/2

$100,000

in the

Wholesale

CHICAGO

209 S. LA SALLE ST.

1.00

parts

Crude oil and gas

Dipped

Tel. DEarborn 2-5600

6.1

Wisconsin

261

Waterbury-Farrell

of Midwest Stock Exchange

Manufacturing Co. of

$5,000, they were modestly above

above

0.50

(Winston-Salem)
Walker

Warren

f0.60

Ingot moulds and plugs

the total for last year. Twenty of
the week's failures had liabilities

William A. Fuller & Co.

1.0

14
23

Warner Co.

with

5.3

Insur-

1955,

ualties

0.50

Wachovia Bank & Trust

they dipped 6% below
the pre-war level of 279 in the
comparable week of 1939.
Failures involving liabilities of
$5,000 or more decreased to 217
from 231
in the previous week
and 218 a year ago.
Although
there was a dip among small cas¬

With Own Private Wires to

Life

State

Angeles, Gal.

Co._

plastics

when 253 occurred
and exceeded considerably the 207

Los

Virginia

Non-participating only

than last year

BROKERS and DEALERS

Co.

'ance

numerous

land

Vulcan Mold & Iron Co..

preceding week, according
to Dun & Bradstreet, Inc.
While
were

and

Volunteer

the

casualties

coal

soft

Vlchek Tool

be¬

from

City real estate

and Kentucky

Week

slightly

ended

week

York

Owns

1956.

Past

the

declined

ures

Place, New York 5, N. Y.

40 Exchange

5.0

11.4

6.4

Rotary pumps

Commercial and industrial fail¬

the

Viking Pump Co

Business Failures Registered Mild

SIMMONS & CO.

0.40

0.3%

previous week and 3.4%

on request

2.50

New

*New Cornelia Extension Copper Corp.
*Report

23.'

••

Ice cream

above; shipments 8.2% below and
new
orders were up
7.2% from

North American Contracting

Victoria Bondholders Corp.__

orders

was

3.6

Makes counting devices

amounted to 30% of

Production

27Ts

1.00
,3.60

Velvet Freeze, Inc.,

Barometer.
new

6.7

above production. Un¬

orders

stocks.

Automation Instruments, Inc.

period,

same

2.5%

were

Fortune Petroleum
*

the

44%

heating systems

Veedor-Root, Inc

Below

Week

Trade

>.; •:

Phoenix

shipments

Lumber

3.5

Vapor Heating Corp.r_—23

of 487 re¬
week ended
Sept. 28, 1957, were 3.4% below
production, according to the Na¬
tional

21-

Ingot moulds and stools

from

3.4%

Past

Valley National Bank of

Car

Output

1.00
3.00

*23
?•'"/

Valley Mould & Iron Corp.__

1956.
Lumber

1957

Insurance

Disaster insurance

expected to reach 500,700,-

tons,

Fire

Home

Company

the

from

porting mills in the

*TURB0 DYNAMICS

1957

Paymts. to
June 30,

ago.

year

tion

June 28,
1957

June 30,

Divs. Paid

pushed
those

Based

Quota-

12 Mos. to

secutive

Years Cash

inventories moderately over
a

% Yield

Including
Extras for

No. Con¬

last

occurred

Approx.

Cash Divs.

crease

largest week-to-week in¬
in gasoline stocks since the

The

Interior reported.

Trading Interest in

page

Trading Starts and Never Ceases

added.

week

from

Fabulous Over-The-Counter Market:

crude inventories shared
decline, the department

foreign

increase

states "Ward's."

there

Thursday, October 10, 1957
'

from 283,165,000
previous week,

decline,

barrels

The State oi Trade and
stepped

...

Includes

„

complete as to possible longer record,

for stock -dividends,

20-cent

spi ts, e*o

payment on July 1,

1957.

•-

Number 5680

Volume 186

Cash Divs.

mVHHWUUVUUUHVHVUtVWVUUVHiUUtHm

Fabulous Over-The-Counter Market:
Where Trading Starts and
'

Quota-

12 Mos. to

tion

Paymts. to

June 28,

June 30,

June

Divs. Paid

Manufacture

sale

and

30,

1957

Based

products

10%

0.80

2.75

17%

0.60

turing Co.

f 1.58
1.40

Years Cash

21%

Alabama

5.3

f0.49

Whitney Natl. Bk. (New Or.)
Will & Baumer Candle Co.—

72
61

Willett ^(Consider H.X, Inc.—_
Maple-and cherry furniture
'*

1.00

*17

0.60

1.50

Williams & Co., Inc
Supplies for industrial safety,
welding, refrigeration, etc.

(Del.) Trust Co.

0.30
8.00

Bank &

Winters Natl.

Natural

Alpha
Inc.

Wisconsin Motor Corp

—

1.00

•

Co.

surance

4.0

0.90

1.3

5.1

Mineral

f0.95

natural

oil

Crude

natural

and

Auto

6.3

controls
propellers

Worcester

for

engines

1.75

Games

Wyatt Metal & Boiler Works
and

Bradley

County Trust Co.

Co.

steel

f 1.90

plate

Corrugating CO..U——

1.40

21.

67%

4.3

4.4

- :

York-Hoover
bodies

York Water

—

Co;.._„

—

7.7

♦

paste for tobacco

1.00

*14

L20

225

8.0

1.40

4.1

1.00

4.8

0.15

2.7

Fire

Craddock-Terry Shoe Corp._
manufacturer

Shoe

Cribben & Sexton Co
Manufacturer

In¬
0.80

gas

0.80

2Vs

0.15

57%

1.6

8.00

9.4

1.50

3.7

7.1

1.00

21%

4.6

fO.29

13%

2.2

7.6

0.20

4.6

1.00
•%.

4.5

*1.00

'27%

carrier

common

3.6

—

cement

Portland

Dulany .(John H.) & Son—

0.75

13%

0.85

15%

0.10

0.45

17%

2.6

Variety chain in South
Eastern Industries, Inc
Mfrs. pumps and traffic

|0.37

19%

1.9

0.40

36%

ill

Canned

5.6

Eagle Stores Co

pumps, etc.
Chicago Trucking Co.,

Dewey Portland Cement Co.
CI.

•

coal

Inc.

machinery

instruments

engines

Turbines,

Denver

0.70

and gas

Bardelebon Coal

Bituminous

systems

fo.90

De Laval Steam Turbine Co.

6.7

Corp.—

Diesel

Motor

(Milton)

domestic

Cummins Engine Co

4.7

wool

appliances

Co.

5.5

and toys

Equity
Crude

and

Oil

food

frozen

signals

oil production
v

5.9

1.00

records

Details not complete as to possible longer

t Adjusted for stock
n.a. Not Available.

as to possible longer record,
dividends, splits, etc.

sure

7.5

your

customers

record,

dividends, splits, etc.

participate in

0.75

3.9

Here, in what is now the

chemicals,

2.00

world's greatest industrial empire

—

steel, oils,

future productions on
constantly increasing demand.

electronics and others are planning

accelerated schedules
Stroud

5.9

0.35

0.95

16%

—

in order to meet a

2.6

in Illinois and

Kentucky

Ask

0.075

development

—

is playing an important part in

and will gladly render any service to you

customers, too, may

that your

about

Eastern Lime

proof building materials

dividends, splits, etc.

Phila. Suburban Water Co.

Corp.

Purolator Products,

Hercules Cement Corp.
Leeds & Northrup Company

Nazareth Cement Co.
Penn Fruit Company,

Incorporated

Ritter Finance Company, Inc.
Smith Kline & French Labs.

Hamilton Paper Co.

Rambo, Close & Kerner

benefit from it.

—

Fischer & Porter Company

complete as to possible longer record,

t Adjusted for stock

Company, Incorporated,

5.7

—

this dynamic

7.2

Standard Pressed Steel Co.
Strawbridge & Clothier

Warner Co.

Incorporated

Philadelphia Bank Stocks

1518 LOCUST ST., PHILADELPHIA 2, PA.
Phila.

New York Telephone

Telephone

REctor

PEnnypacker 5-2800

Copy of the Philadelphia Inquirer 1957

Teletype

Delaware

Valley illustrated supplement sent on request.

PH 63

2-2820

Corporate and Municipal Securities

STROUD & COMPANY
INCORPORATED

WALTER G. NELSON

EDMUND J. DAVIS
Vice

President

Charge

Corporate Department

Manager

Municipal

Bond

Department

hotel

Denver

6.0

DELAWARE VALLEY, U. S. A.

gold dredger

not

9.4

18.00

4.8

" 4.50

*10

Zeigler Coal & Coke Co

Details

11.7

equipment

Yuba Consol. Gold Fields

Fire

cards

4.0

0.30

Department stores in Midwest

1.20

Assurance

7.1

• ■

Younker Bros

Owns mines

0.75

4.2

Youngstown Steel Car Corp..

Zonolite Co.

3.50

Cosmopolitan Realty Co

Details not complete

Operates hotels,,camps and stores

Young (J. S.) Co.

California

4.2

and tubes

Tires

Operating public utility

Railroad cars and

14%

caskets

Yosemite Park & Currv Co..

Licorice

0.60

truck

specialized

burial

and

Corp

Manufacturing

2.00

4.6

Lines, Inc.

—

t Adjusted for stock

17%

Kentucky bus service

insurance

Phonograph

York County Gas Co
Operating public utility

0.80

Cooper Tire & Rubber Co

Capitol Records, Inc

'18%

Products

1.0

Operating public utility

Metal'.stamping, wholesale plumb-

ing and heating supplies

4.0

sand

Corp.,

greeting

nailing

Rock

—

and

0.25

Brooklyn Borough Gas Co.—

2.90

Consolidated

Mart

Blue Ridge Insurance Co.
Diversified insurance
■ *' *

5.3

financing

'Optical

4.2
5.1

and

(Mass.)
Sheet

11%

f0.49

Governor Co

5.7

13%

Continental Motor Coach

Bausch & Lomb Optical Co._

broadcaster

Speed

►

Manufactures

Station

(Detroit, Mich.)„
Detroit

0.90

National

Auto-Soler

pro¬

gas

Goodwill

The

Woodward

York

3.00

ducer

WJR

Company.

14y8

•

■

Freightways, Inc.

3.8

Atlas Finance Co

Oil

0.80

|0.55

0.30

freight

Mechanical conveyor

utility

Wiser

8.0

Banking Corp.—

f0.99

Anchor Steel & Conveyor Co.

5.0

public

gas

fo.72

American Rock Wcol Corp.—

Company, Inc.

0.6*0

instruments

insurance

Diversified

Southern Gas

Operating

13 3

Products, Inc.—_

Consolidated

Diversified

Electricity supplier

Wisconsin

—

Home

surance

25%

1.28

5.0

r,.-'4

Gravel

„—

—

American

2.9

(G. C.), Ltd.

Motor

Corp.

hospitalization insurance

Wisconsin Power & Light—

25%

Co.

Furniture

Manufacture

In¬

—_—_—-

6.5

;

coverings

Conn

Products

—

Class B

accident, sickness and

Life,

7.5

12%

Top manufacturer of band

1.15

American

Life

National

5.1

Chicago real estate
American
Greetings

Air-cooled engines

Wisconsin

Markets,

Forest

»Building Co.

4.2

0.60

0.80

Commonwealth Telephone Co.

Logging and lumbering

4.1

1.35

Dealer financing

5.9

markets

super

American

*32

5.3

foundry

(Dallas, Pa.)

—

Corp.

Trust

(Dayton, Ohio):

20%

Food

Beta

American

4.6

195

and

Telephone service

distributor

gas

California

..«•

•

1.20

0.50

Adding machines, typewriters, etc.

5.0
•»

•

Wall

Ma¬

Allied Gas Co

7.3 *;

2.00

6.5

rolling, laminating

Color-Craft

1957

(R. C.) Business
chines, Inc.

6.1

•

Williams (The) (J. B.) Co.—
f
Manufactures, toilet articles

Wilmington

June 30,

30,

Pipeline

1.2

328
16%

4.00

27.5

lacquering

Natural

Tennessee

Allen
.

beeswax-

Candles and

June 28,

June

Foil

Commercial

Gas Co

2.7

Insulated wires and eables

equipment

Cochrane Foil

Based on
Paymts. to

foundry-equipment

Whitney Blake Co.—
t

tion

6.4

1.00

Whiting Corp.
Cranes, hoists,

Quota-

Divs. Paid

Works

Machine

Textile machinery

Including

3.3

0.40

wells

trench excavators

Extras for

secutive

of Portland cement

Manufacturer

Whitin

1.10

Cleveland Trencher Co

Approx.
% Yield

12 Mos. to

No. Con-

5.5

Churchill Downs, Inc

Cash Divs.
-

turing Co.

Manufacturer of mechanical

3.4

Manufac¬

Cement

o.55

fabrics

."Kentucky Derby"

stationery <fc greeting cards

Social

Whitehall

1957

(malleable)

HVWWWnUVWWWWUUHWUWUHUUHVW

Wyckoff Manufac¬

coated

Co.

5.9

1957

Railway Equipment

Railway

products

White

oil

Chicago

5 to 10 YEARS

Whitaker Paper Co
Paper products and cordage

Paymts. to
June 30.

bicycle

Cedar Point Field Trust, ctfs.

7.4

Manufacturer of automotive cable
*•

Manufactures

PAYERS

for

June 28,

etc.

Texas
r

Whitaker Cable Corp

tubes, brake lining,

tires,

Carpenter (L. E.) & Co

'3.0

tion

June 30,
1957

Based

Inner

1957

1.10

Carlisle Corp.

Consecutive Cash

forest

% Yield

.Quota-

DIVIDEND

Approx.

12 Mos. to

Divs. Paid

% Yield

Extras for

secutive

Weyerhaeuser Timber Co

secutive

OVER-THE-COUNTER

Approx.

No. Con-

Years Cash

Induding)
Extras for

Years Cash

Never Ceases
Including

-i' •

No. Con-

TABLE II

Cash Divs.

(1607)

The Commercial and Financial Chronicle

...

PHILADELPHIA 9
NEW YORK • PITTSBURGH • ALLENTOWN •

LANCASTER •

ATLANTIC CJTY •

SCRANTON

< ■

The Commercial ancl Financial Chronicle

(1608)

Continued

to 1% higher than a
according to estimates
by Dun & Bradstreet, Inc.
Re¬
gional estimates varied from the
comparable 1956 levels by the fol¬
lowing percentages: West North

from page 50

resulted

than both those of the

prior week
and the similar 1956 period. An¬
other considerable drop in lard

in soybean futures prices
buying decreased. Corn futures
dropped again following the Gov¬

decline
as

crop

somewhat.'
steady

were

at the level of
the

week earlier.

rise in

coffee

week,

Although cocoa volume was high
the beginning of the week,

fell

pared

with

Was

hog

Increased

fourth

prices

week

row,

declined sharply

week

>
buying

consumer

last

earlier.

Steer

prices rose
receipts in

moderately as cattle
Chicago fell to the
lowest level for any week since
last April. Increased purchases of
lambs helped prices expand ap¬
preciably. Lamb receipts were less

1956

less

than

year-to-year
chases

similar

the

slight

were

decreases

furniture

appliances.
reported

There

week.

and

Automobile

continued

pur¬

major
dealers

high

level

of sales of new passenger cars,

inventories

higher than
The

tail

total

trade

were

but

moderately

a year ago.

dollar volume

in the period

Wednesday of last week

ended
was

|
There

Flour

sales

rise

Fort

low those of

suits

nuts

Auto

wholesale

shows

and

another

was

purchases

of
for

preparation

Pulp,

carded

cotton

sluggish.

knitting

There

was

f°od

store

Federal

dex

for the week

weeks

the

ing

trade

York

the

EAST

MASON

serve

the

MEMBERS

MILWAUKEE

NEW YORK STOCK

Board's

5.5

0.31
0.90

16%

1.26

24%

5.1

„0.75

18%

4.1

0.40

5.9

.•

...

4.2

„

155

3.2

2.40

5.3

zl.20

21%

5.5

1.00

14%

6.8

1.50

27%

5.4

0.80

11 %

5.00

publishing

0.60

page

40.

home

and

school*

motor

te"

carrier

public

utility

Jack & Heintz, Inc
Precision

Power

parts

l^wn

7.1

for aircraft

Manufacturing Co—

8.6

«'

mowers

Jersey Mortgage Co

3.00

0.40

1.00

—

0.25

Organization—

Leader

6.3

Buildings, bridges and tanks

Service

station

Paper

plastic

plates,

Keystone

past

Co.

Manufactures

trade

20Vs

6.0

1.95

32%

6.0

2.30

53%

4.3

0.825

1*1.10

1.9

5.0

0.60

12%

4.7

fO.42

11%

baker

Coast

Oilfield

products

Macco Corp.

correspond¬

ago,

Langendorf United Bakeries.
West

;1.20

5.0

cement

(Chicago)
Lakeside Laboratories, Inc.—

week

6.9

Cement

La Salle Natl. Bk.

higher

14%

etc.

trays,

Portland

Pharmaceutical

the

1.00

equipment

Keyes Fibre Co

5.6

nuts

Kent-Moore

1957,

Kelling Nut Co
Edible

0.6

Pacific Coast

Kansas City Structural Steel

in¬

volume

of the

Corp

construction

and-

main¬

tenance

ob¬

Marmon-Herrington
the

Federal

index,

Re¬

department

in New York City for

Inc.

Co.

period of last

the

1956.

■

3.7

four
a

11%

reported.

was

weeks

Maryland Casualty Co

was

3.00

1.70

50%.

3.4

0.40

1.7

35%

4.2

265

1.1

Limestone

Vulcanmers

Metals
Metal

Disintegrating Co.

;

powders

Mexican

Eagle Oil Co., Ltd.
Ordinary

0.52

interests

f0.09

Property

Moore

1.50

18.9

(William S.), Inc

1.5*

Retailing

National Bank of Toledo

(Ohio)

gain of 3% above that
period

1.50

insurance

McNeil Machine & Engineer¬

For the period of Jan.

corresponding

Diversified

ending Sept.

decrease

•

Material Service Corp

year.

preceding week, Sept. 21,1957,

the

mont

ing Co

28, T957,

j.uiHihllWil,

5.3

4.8

62%
7%

Company's advertisement

Operating

recorded

CO.

Common

1, 1957 to Sept. 28, 1957, the index

3.00

products

paper

Iowa Electric Light &
Power Co.—^

reported.

was

sales

Board's

registered.

EXCHANGE

MIDWEST STOCK EXCHANGE

2.00

System

weekly period ended Sept. 28.

For
2

6.0

Baking bread and cakes

report.

decline

SECURITIES
ST.,

11%

Interstate Motor Freight

taken from

1957, decreased 3% below that of

INVESTMENT

0.70

Heavy duty trucks; mining equip-

the

INCORPORATED

2.9

Interstate Bakeries Corp

1, 1957 to
increase of 2%

year

According

the

225

See

sttidv

Jan.

CJitv

level

period

store sales

wa &

13%

production

Printing,

volume

Sept. 28,

unchanged

servers

OVER-THE-COUNTER ISSUES

f0.39

International Textbook Co

change from the

period

Retail

than

5.3

10.9

TITLE

•

Sept. 28, 1957, an
was registered above that of 1956.
New

13%

Title Insurance

ended Sept. 28,

ended

decrease

was

In the pre¬
ceding week, Sept. 21, 1957, a de¬
cline of 4% was reported. For the

for

3.50
0.70

MORT¬

GAGE

like period last year.

It isconsin Market Place

GUARANTY

slight

sales

Reserve

1957, showed

Mortgage banking and real estate

country-wide basis

For

6.7

INTER-COUNTY

close to that of the previous

four

3.1

14%

Kaiser St^fl

CV 444

and

paper

Limestone

week.

supplier

gas

Jacobsen

wholesale

Total,
was

1.00

""""

Copper Co.-

Coke

dustrial fabrics.

Department

Teletype CV 443

3.1

1.00 "

gas

Indiana Limestone Co

yarns

2.50

Indiana Gas & Chemical Co.

the

Wholesalers

the

Telephone PR 1-1571

insurance

Corn refining

gain in the purchases of wide in¬

9
lines

Hudson Pulp & Paper Corp.,f
Class A

dipped and prices

yarns

4.0

mining

season.

somewhat.

Holding company—auto financing

toys
the

1.05

Hubinger Co

linens.: Buyers continued
their

8.8

Sugar production

expanded,

rise

."*"

allied

Hibernia Bank (San Fran.)
Home Finance Group, Inc.—

-Textile V trading
lagged
again
week.
Transactions
in

was

CLEVELAND

Insurance

utility, electric and

Natural

laundry equip¬

ranges

gas

0.575

welding equipment and
welding studs

While

occurred.

6.3
V.

...

Stud

Philadelphia reported
a
moderate drop in volume in
carpet wool.
Bookings in cotton
gray goods advanced, but trading

Building

Fire

Distributor of natural gas

bookings

9%
.

Gregory Industries, Inc.——

Boston and

National City E. 6th

and

Metal

last

Corporation

"...

Greenwich Gas Co

helped

volume

risn

utensils

worsted

11.8

parts distributee

Public

noticeably

rose

0.60
•

Greene Cananea

buying of floor coverings, draper¬

fell

Vermont

better

and

sustained at

was

furniture

Christmas

„

0.50

Interest in men's top¬

and boys' slacks
during the week.

Municipal and Corporation Securities

6.5

Pumps and water systems
' "
Green Mountain Power Corp.

week earlier. There

coats and suits

dolls

4.3

10%

,1.

7
"•*

Parts

Company
Fire

high level and the call for men's

boost

0.70

...

Haytian American Sugar Co.,
S. A.

Member Midwest Stock Exchange

Hagerstown Cas Co

ies and

1.45

cruisewear.

and

The First Cleveland

and

Gould Pumps, Inc

■

almonds

Germantown

volume in refrigerators slackened.

Distributors

(R. E.) Co

and

Genuine

for

orders

coats

sales of automatic

Dealers

work

Lumber products

appliances and

housewares, china, glassware and

Underwriters

5.3

boats.

Transit

an
appreciable gain in the
buying of fashion accessories and

There

23%

Gamble Brothers, Inc.—

While

was

and

1957

Sheller and packer of pecans, wal.

the past week, and vol¬
slightly exceeded that of a
year ago.
Purchases of women's
suits, however, were slightly be¬

ment

1*1.25

;

——

metal

Craft

Worth

Funsten

dresses

kitchen

1957

Fort Worth bus service

ume

boost

1957

Alunia

and

bedroom

major

modera+e

June 30,

City Ornamental Irc-n

Ornamental

stimulated

slight

cloth

Some

Paymts. to

Co.

and

topcoats

was

women's

re¬

from

men's

tion

June 28,

30,

moderate

lines of men's and women's

some

tionally
the

Under

1956 Level

of Trenton

lamps and lighting fixtures im¬
proved. Slight year-to-year gains
prevailed in the buying of blan¬
kets, draperies and floor cover¬
ings.
.
Apparel wholesalers reported a

at New apparel helped boost total retail
bags,: com-- trade moderately over that of the
bags a year preceding week, but it was frac¬

week. Trading improved at the end
of the week as receipts fell below

those

Fractionally

sportswear

weather

Divs. Paid

Based

in sales of

ago

June

Federal Sign & Signal Corp.
Signaling apparatus
v "
" ~
First-Mechanics Natl. Bank

Quota-

12 Mos. to

secutive

—4

% Yield

Extras for

Years Cash

television sets lagged, purchase of

*'■

but

Week

Cold

interest

No. Con-

States

and dinette sets last week.

Slightly

♦

ago.
For

Preceding

year

clines

cocoa

300,464

368,762

Volume Advanced

Above

r "

)

Trade

Approx.

Including

decline
in volume in children's clothing.
Furniture
stores
reported de¬

period

suits.

through Sept. 24,

ago.

year

wholesale orders slackened at the

Warehouse stocks of

183,000

in the similar

bales

000

their inventories dwindled.

York

the

below

season

Central

England

dresses,

interest

exports were estimated at
638,000 bales compared with 840,-

period. A moderate de¬
prices was noted.

coats.

111,000

.about

total

boosting

end of the

but

the

For

transac¬

cline in futures

last

ended

week

South

New

week and

the corresponding period last year.

prices somewhat.
Roasters stepped up their orders

tions,

the

Cash Divs.

+1%; Middle Atlan¬

East

and

women's

bales, the same as the preceding

increased

Where Trading Starts and Never Ceases

-fl

Apparel stores reported appre¬
ciable gains over both the prior

with 3,254,000 a
United States exports of
totaled

—8 to —4%i-

compared

Tuesday

sugar

of the week there was

end

noticeable

bales

year ago.
cotton
in

and

conditions

States

+5%; Pacific Coast 0 to +4%;
South Central —1 to -j-3%;

tic

price fixing. Ginnings to Sept.
amounted to about
1,612,000

Mountain

and

lantic —3 to

consecutive week.

growing

unfavorable
and

prices
trading remained

Refined

Much of the rise was attributed to

and prices

moderately

the second

for

would be sup¬
bushel.
;
Trading in oats and rye slack¬
ened and prices fell moderately.
Contrary to the general trend in
grains, wheat futures prices rose
fractionally over those of the pre¬
ceding week and purchases were
sustained at a high level. - —
Purchases of raw sugar climbed
year's

ported at SI.10

page

East North Central and South At¬

Central

prices advanced

futures

Cotton

ernment announcement that some
of this

from

Fabulous Over-The-Gounter Market:

West

prices occurred.

noticeable

Continued

ago,

year

The State ol Trade and Industry
forecasts

below

Thursday, October 10, 195%

...

•

♦

Details

not

*diustod

complete

for

stock

Rate increased

to possible longer record.

dividends,
35

cents

splits, etc.
Oct. 1, 1957 quarter.

for

39%

3.8

Volume 186

Number 5680

The Commercial and Financial Chronicle

.,.

the

Fabulous Over-The-Comrier Market:

No. Con-

Including
Extras for

Railroad Securities

secutive

12 Mos. to

Years Cash

June

Divs. Paid

tion

June 30,

18 %

1.10

Railroad

grade crude oil

New

manufacturing

utility

N. Y. Wire Cloth

0.50

1.20

27%

4.3

Co...r

1.00

7.7

has

screening

NorrisrThermador
Metal .fabricating,

0.75

Co.

0.50

0.10

___

fO.68

Manufacturing Corp.

Laundry-equipment

5.7

18%

3.7

Park-Lexington Co.
Y.

real

10.00

5.7

175

Formerly" Parker Appliance Co.
New: name
adopted ' Sept. 30,
1957, following
acquisition
of
Hannifin Corp., Des Plaines, 111.

f0.916

22%

Manuiacturer or hydraulic oc iluiu;
;.

systemxomponents.
Pehn Controls, Inc..

Manufactures. automatic
controls

1.20

19%

6.2

electric

•

Penn Fruit Co. Inc

23%

1.5

1.12% 2oy4

5.6

1.40

8.8

t0.34

Regional super market chain.

Penton

Publishing Co

Business and technical journals

Perfex Corp*

——

and

1.00

20%

4.9

0.80

8.0

Louisiana

and

3.5

0.70

2.7

0.50

186

0.3

0.14

Lighting equipment

Plastic Wire & Cable; Corp
wire

and

cable

films

■

Pope & "Talbot, Inc.,-___--_West Coast lumber

—

Portable Electric Tools, Inc.Portable'tools

'•

mills

1.25.

23%

4.4

0.40

1.00

8.0

Produce Terminal Cold Stor¬

———J

age Co.

Insurance Co.
Diversified

0.15

1.8

6.7

1.00

0.10

3.50

52%

6.7

0.40

53/4

7.0

t0.09

0.40

10.0

1.00

1.4

f0.90
,7

11%

8.0

Five different fields

Rumford Printing Co.
San

Miguel- Brewery,
(Philippines)

Inc.

ver

Co. (NYC)

0.90

f0.79

1.00

The

road

the

excellent

terri-

t0rial

outloqk, and the virtual
certainty of an eventual siibstantial increase in the present divi-

dend, the shares of this company
at this time represent an excep-

tional investment opportunity,

With Robert C. Kerr
!

(Special to The Financiai, Chuoniclje)

ORCHARD, Mass.

INDIAN

—

has been added to»
the staff of Robert C, Kerr & Co.

Avelino Dias

103 Essex Street.

NEW YORK

Govcrnment-Municipal-Corporate
Securities

Dealers

;

Underwriters

—

Brokers

un¬

several

John C. Lfgg & Company
Established
*'

;

two

factors

important in

1899

Members

New Yprk Stock Exchange

American Stock Exchange (Assoc.)-

Philadelphia-Baltimore Stock Exchange
Direct

Wires

•.

„

Gregory & Sons, New York
Walter C. Gorey Co., San Francisco
Crawford, Inc., Atlanta, Ga.
Clisby & Company, Macon, Ga.
Bell & Hough, St.. Petersburg, Fla.
Sellers, Doe & Bonham, Montgomery & Dothan, Ala.
Odess, Martin & ITerzberg, Inc., Birmingham and Tuscaloosa, Ala.
Pierce, Garrison, Wulbern, Inc., Tampa, Fla.
F.

Moseley

Revel

Miller

French

& Co., New York
Co., Los Angeles

re¬

Shedd-Bartush Foods, Inc.—
products

20%

3.9

5.3

and

products

Details not complete as to possible longer

record,

t Adjusted for stock dividends, splits, etc.

Continued

page

has

been

This is

not mi offer to sell nor a solicitation of an offer
buy. The offering is made by prospectus only.

was

the

195V

September 15,

held
like

be obtained from:

increase

accruals

422 Fidelity

Company

Texas

per

$3.45

Federal

but

even

Texas National Petroleum

that

share for the period
from $2.77 in the

estimated

cents

deferrals
,

the

Denver

able to show earnings

$6.50 a share.
Of these
earnings probably only about 70

TWXDL. 679

Dealers Invited

it
be

Company

Three States Natural Gas Company

income

Industries, Inc.

RAUSCHER, PIERCE A CO., INC.
Member

.
.

American

MERCANTILE

BANK

Stock

Exchange (Associate)

BLDG.

Direct

Wires

DALLAS 1, TEXAS

•

Bell Teletype DL 196 and DL 197

Telephone Riverside 1-9033
•

Midwest Stock Exchange

New York Stock Exchange

Principal

Markets

around

JSuilding, Dallas 2, Texas

R1 1-3501
6

1.957

will

Franklin Securities

Southwestern Financial Corp.

ratio

freight rate increases so that fur¬
ther year-to-year earnings stabil¬
ity
seems
likely
during
the
balance of 1957. For the full year

$4.50 PER SHARE
may

level

Southern Union Gas Company
Southwestern Electric Service Co.

Starting in late August, the road
began to feel the benefits of the

(an Old Line Legal Reserve Life Insurance Co.)

PRICE

same

Delhi-Taylor Oil Corp.
General Minerals Corp.

1956 period.

par common

Copies of the prospectus

at the

Ltd.

Central Louisiana Electric Co.

1956

tial

rose

Dallas, Texas
no

Aztec Oil & Gas Company
Canadian Delhi Petroleum,

period. During the
1957 period, there was a substan¬

earnings

Fidelity insurance Company

maintenance

Trading Positions in

Arkansas Western Gas Company

select

the

it is anticipated

the

tax

62,268 Shares

The International

among

it
stay in that select group in
the current year. It is interesting
to note that contrary to the ex¬
perience of the industry generally,
where high wages already have
taken their toll, Denver accom¬
plished a further cut of one full
point in its transportation ratio
during the first seven months
through July; 1957 to 29.8%. In
addition,

New Issue

We Maintain

will

Title insurance

latter

been very

higher wages

5.6

insurance

Security Title Insurance Co.-

the strong position

Considering

INSURANCE STOCKS

■

group of rails with transportation
ratios of less than 30%.
Despite

Seaboard Tire & Marine In¬

peanut

without retirements, the $7 earn-

BALTIMORE

degree of operating efficiency. In
three of the past four years, Den¬

dairy products

Margarine,

by other railroads. These
plus other improvements has en¬
abled the Denver to attain a high

Magazines

salad

having

preferred

owned
——

Women's-coats and suits

the

been eliminated by call and forced
conversion a number of years ago.

ducing operating expenses and the
per diem charge on freight cars

0.2

yards.

have

Rothmoor Corp.

Diversified

the

heavier rail, installation of central
traffic control and modernization

Manufacturing motors, fans,
cranes, and pumps

surance

for

rebuilding of the main line with

hoists

Beer and

)ias been
past

ments

Rogers Corp., CI. B

were
outonly 2 104 936 shares of

common

This antici-

^ of* the "end

there

3.8

candy

Rochester Transit Corp
Rochester. N. Y., bus lines

standing

1957

Among these accomplish¬
have
been
dieselization,

years.

insurance

RobbingMyers, Inc

retirements,
stock

Actuallv

juiy*

___

trends have been

derway
8

—

revenue

tion program which

& Marine

Queen Anne Candy Co.—
Bar .and bulk

increase

Better control of operating ex¬
penditures has been accomplished
through a wide-scale rehabilita¬

facilities

Cokl storage

Quaker City Fire

standing

oyer

than the national average.

6.1

16%

Piiblicxold storage warehouse

Quaker City Cold Storage Co. *
v.
t c.~—————•

been

operating rate of miles along its
lipes has been better maintained

•

there

allowing for the 50%

Polaroid Corp.
Cameras.and

had

au§mei^ted when and if, ingS considered possible this year
c?11}meiciaL exploitation
011 would come to only $4.85 a share,

served, but also to the strengthen¬
ing of the carrier's position with
respect to through freight as a
result of..a vcomprehensive prop¬
erty rehabilitation program.
In
the (current :year in particular the
company has benefitted from the
strong steel demand on the. West
Coast, as a result of which the

Texas

Pittsburgh Reflector C., CI. B

Plastic ^covered

volume

stan

the few

tribute not only to the industrial
growth of the territory directly

Natural gas

Pickering Lumber Corp..
California,
holdings

traffic

The favorable long-term traffic

Petersburg Hopewell Gas Co.

Manufacturer of heat transfer

products

one

When the company

split in 1955, there would now be
3,046,445 shares of common out-r

4.0

___

estate

Parker-Hannifin

Denver

dividend of 1953 and the 3-for-l

the like
feasible. There are believed to be
1956 period, and for the seven
.remendous reserves of this shale
months through July it was able
in
the
Denver
&
Rio
Grande
to report a gain of more than 9%
Western's territory.
in operating revenues. As a mat¬
ter of fact, for the 38 weeks ended
•,
With its favorable traffic backSept. 21, 1957, the Denver was ground, highly efficient property,
one of the few roads in its district
conservative
capitalization,
and
to show improvement in carload- adequate
finances, the company
ings over the like 1956 period. Its could well increase the dividend
carloadings V during this interval considerably
from
the
present
r^rioupt^di tb approximately 359,i $2.50 annual rate. However, the
000 cars as compared with 352,000 road
for some years has been
cars
in the like period of 1956. diverting
considerable cash an¬
Carloadings for the Central West¬ nually to the purchase and retire¬
ern District
during the same pe¬ ment of its own stock, which, in
riod
aggregated about 7,389,000
cars against
7,740,000 cars in the
1956 period.

Trailers

Pantex

and

prospect, based on the continuing
growth of the service area itself
and of contiguous territories by

superior to that of the

railroads able to show

5.0

doors

Palace Corp.

all-time record for

pated expansion in the traffic
potential could, in time, be sub-

The

core

was

the reorganized company.
For
the future, further consistent expansion in earnings power is in

territory in which it operates.

5.1

14%

>0.75
!

jftadio.TTV-electronics; garage door
hollow

which

connecting carriers.

linens

Packard-Bell Electronics
openers;

been

earnings of $5.79

ported

rail-

other carriers of the nations' rail-

5.4

manufacturing
and

few

roads and also to the roads in the

Corp.-

appliance

Opelika Manufacturing Corp.
Towels

the

one

which
has
been
doing
particularly well this year as
compared with last year and preceding years. Its revenue trend
in the postwar period consistently

2.6

Jersey Natural Gas Co.

Operating public

Insect metal

roads

New England Lime
Lime

Had

Denver & Rio"Grande Western

5.9

Natural gas and Pennsylvania

cash

ble share-fof-share into common,
and 351,677 shares of common.

National Gas & Oil Corp

the

reorganization in
outstanding 325,313
shares of 5% preferred, converti¬

Denver & Rio Grande Western Railroad

1957

from

emerged

Paymts. to

1957

would

increase

dividend.
1947

June 28,

30,

1957

thaii

immediate

Approx.
% Yield
Based on

Quota-

long run, will benefit stock¬

holders

Where Trading Starts and Never Ceases
Cash Divs.

(1609)

Amortization.

will
due

represent tax
to accelerated

In 1956 Denver re-

Austin

Fort Worth

Midland

Odessa

•

Harlingen

San Antonio

•

Houston

Tyler

•

Victoria

Lubbock
•

Waco

The Commercial and Financial Chronicle

(1610)

Continued

profit

from page 10

loss on subsidiary oper¬
If the airline does show a

ations.

profit it is subject to heavy
taxation and only what is left is
available
for
distribution
to
shareholders.
If the airline suf¬
net

Overcoming Financial Squeeze
In the Airlines Industry

net

fers

losses,

have
aid.

may

fall back on government

Continued

from

page

Where Trading Starts and Never Ceases

way and, regretfully but in ac¬
with
sound
business
these figures because cordance
they illustrate a condition that is principles, we have tried to pass
on this increase to the users of air
currently endemic in the airline
industry — we have no room to transport. Yet we have not been
turn, we are caught in the great allowed to do so and have had a
financial
squeeze
as
costs rise lot of figures thrown at us to show
faster than revenues. Every busi¬ why we do not deserve it.

the right term to be applied.
I

give

nessman could immediately sug¬
gest half a dozen ways in which
the situation could be remedied,
but he would be somewhat

aghast

if he found that none of these was

to the airlines and that the
solution to their dilemma was not
open

in their hands since
in

they are not
position to control the price

of their

product.

Over the

past 10 years the price

fevery product and service an
airline uses has increased, but
fates have gone down.
We can¬
not

claim

credit

for

all

this.

the war we
were not a very efficient industry,
since
we
were
operating with
military aircraft converted into
civil use and were groping our
Immediately

after

should

talk

some

length about this battle of figures
and to show what they mean to
the air transport industry.
As^a
rough indication of profit we often
quote operating profit, which is
the difference between operating
revenues and operating expenses.
This figure provides a margin of
about
2%
over
operating
ex¬
penses, but the fact that it is the
most
easily available yardstick
disguises the fact that it it very
often misleading. On a worldwide
basis it- might be good enough, •
but to each individual airline the

important figure is the net profit,
which is arrived at after taking
into account fixed interest obliga¬

tions,

development

costs,

and

wealth."

its

overstates

ever

ital

operation

financial

the

and

various

involved

processes

shown "below the line."
ital

borrowed

cap¬

are

The cap¬

the
that is

for

pay

equipment and some of
required in cash as advances to
manufacturers. A long term plan
has to be prepared at the same
time in order to satisfy the lend¬
that

ers

will

funds

available

for

only be obtained year by year
out of provisions for depreciation

profits.

from the point of
view of the investor, whether he
is government or private, the in¬
dication of the future prospects
of the industry is the relationship
of net profit to capital invested.
The management have a two-fold
approach. On the one hand, oper¬
ating profits give them an indi¬
cation of how the airline is doing
Therefore,

net

provider of transport service;
the other hand, the ratio of

profit to investment gives

indication

doing

how

the

airline

business enterprise.
yardstick also enables

latter

investors to compare the financial
soundness
of the
air
transport

industry with that of other indus¬
tries.

UNDERWRITERS

There

however,

and

that

is the

ship between annual
capital invested. In
tries,

capital

small

MUNICIPAL

and

small

CORPORATE

SECURITIES

SCOn, HORNER & CO.
ESTABLISHED 1932

VIRGINIA

MAIN OFFICES—LYNCHBURG, VA.

WEST VIRGINIA

NORTH CAROLINA

Telephone 8-2821

TENNESSEE

Corp. Teletype LY 62,63
Mun.

Teletype LY 82

relation¬

revenue and

indus¬

some

invested

proportion

brings it

AND

further

one

w^ich has to be taken into

account

DEALERS

1.55

very

revenue

operating

profit

large rate of return on
investment. In others, in particu¬
lar such public utilities as rail¬
roads and electric power indus¬
tries, the capital invested exceeds
many times the annual revenues
and a higher rate of profit in re¬
lation to revenues produces a very
low

rate

of return

capital in¬

Paints and varnishes

„

industries

smaller

of capital. Currently its cap¬
ital invested is about half its an¬

user

revenues

and

after

even

its

heavy re-equipment program, the
ratio is unlikely to go beyond one
to

It would

one.

seem

that there should be

therefore

difficulty

Snyder

Tool

Engineering

10%

ment.

complete facilities

security

mar¬

It is true that

our

The

do.

narrow
—

and also

our

statistical information.

indus¬

try we do not make 5%, but
of

for both listed and unlisted

kets

should currently provide
of return on invest¬

rate

fortunate

trouble

some

members

that

such

Retail drug store chain

South

kraft

and

rag

Chas. W. Scranton &. Co.

20%

are

209 CHURCH

STREET

NEW HAVEN 7, CONN.

Branch

Bridgeport

•

Danbury

40% reduction in the rate of

•

New London

would

investment.

re¬

Sound policy

accordingly look for

a way

to protect the financial structure
of the industry both from fluctua¬

tions in

Offices in

New York Phone: REctor 2-9377

operating
profit related to revenues, but a
turn

Members New York Stock Exchange

reduction

operating profit and from

their magnified impact on the rate
of return
•

Waterbury

Teletype: NH 194

capital invested. Such

policy can only be followed by
allowing the airlines to accumu¬

late

reserves

which

would

Jersey Gas Co.!—5
gas
''..,7. :'.;7
Development Co.7y I

Class B

—

;

5.5

47%

0.3

f0.72

1.00

6.5

Newsprint

1.00

2.00

143

1.4

0.70

7.0

1.25

34%

3.6

0.15

2.9

5.75

53%

10.7

-9

0.70

7.4

25ft

2.4

f0.47

13%

3.5

0.25

30%
20%

5.6

Engineerihg,Co»;

operations-

Spartan Mills

5.3
-

•

Southwestern

•

Operating public utility - ■-* *
Southland Paper Mills," Inc:r_

—

and

sheetings ;;
Standard Commercial

Tobacco Co.

; *,

____________

Tobacco merchandising

Standard Paper Manufactur¬

ing Co.

Sulphite

Stern

bonds

coated

papers

Stern Textile, lne,_
Silk, rayon and nylon fabrics
.
Stuart Co.
&

...

f0.60

Pharmaceutical manufacturer "and

distributor

Stubnitz Greene Corp.—7
Manufactures

trucks,

spring
and

cars

control

switches

seats

for
motor

buses,

and

vinyl

plas-

tisols

"•>

Stuyvesant Insurance
Suburban Gas

0.8

Service, inc.--

0.93

0.60

3.3

0.60

3.2

0.92

12V

Petroleum gasesj"

•.

Superior Separator Co.__J

r..'.

4.5
,

Materials-handling equipment

Tejon Ranch Co
California land holdings

Television-Electronics

Fund,

Inc
Open-end mutual

invsetment'

Tennessee Natural Gas

-7.3

co.

Lines,
;

Inc.

0.55

4.6

Texas Eastern Transmission.

1.40

25%

5.4

Operates natural gas pipelines
Texas Gas Transmission Corp.

fO.99

20%

4.7

6.0

Pipe lines

Natural

TITLE

-...

gas

pipeline

GUARANTEE

TRUST
Title
•

AND

COMPANY

insurance

See

.*'■

Line

Gas

page

38.

Pipe

Corp.

Interstate

1.20

-v

Company's advertisement

Transcontinental

natural

0.975

18%

5.2

1.25

2.3

0.14

34%

0.4

1.15

23%

4.8

1.60

27%

5.8

0.55

16%

3.3

1.00

5.9

2.50

0.78

8.0

2.20

32%

6.8

1.25

26%

4.8

0.50

10%

4.7

pipeline

gas

system

Union Lumber Co
California redwood

U. S. Life Insurance Co
accident and health

Life,

States Sugar

Corp.—

Sugar production

Electric

public utility

Utah Southern Oil Co—
Oil

•

andigas producer

Vanity ^alr Mills
Lingerl^V,

*9
-

Virginia Hot Springs, Inc.—

Vulcan?1$>rp

—

Wood, heels, bowling

Warned

7.4

i"Swasey

pins, etc.

Co.

Machine' tools, earth moving ma¬
chines, textile machinery, etc.

Washington Steel Corp
Stainless.' steel

Waverjy'Oil

Works Co

Oils,
jgre^ses and soaps
Welex)Jet Services, Inc.

Operating; public utility
Wolf & ilessauer Co
Fort > Wayne

Wyckdfi
Cold4

f 0.60

30%

2.0

1.25

5.2

1.00

6.3

0.75

10%

7.3

Servi|e^;pU wells
Wiggiii terminals, Inc., v.t.c.
Boston
harbor >
Wisconsin-Hydro Electric Co.

even

page

4.00

Nevada Power Co.
utility
,
.
- ^ ; -

Diversified

; 0.15 r

Southern Utah Power Co.__!

Cloths

5.4
'

supplier

gas

Electric

6.9
^

•<

1.45
27
7.?! ,7

;
■„

—

Operates Louisiana sugar
plantation
Natural

"~v

•

11%

Southdown Sugars, Inc.*—— *

Continued

0.775

Natural

6.7 :•»

>vr-

•

papers

South Texas

Oil royalties •

Resort hotels

greatly magnified when related
to capital invested.
Thus in the
example quoted a drop of 1% in
operating revenues would cause
a

0:40V

r!; v-V

Sorg Paper Co,
Sulphite,

2.2

- >

-7

margin is subject to fluc¬

tuations and these fluctuations

1.3

17%

Upper Peninsular Power

revenues

15?,

Co.

tract

We invite you to use our

Special machinery
■
•>••• *~ .'*'<*•
Sommers Drug Stores Co.!J-

investors.
An
operating
profit margin of 5% in relation to

•

0.20

? *

6.5

„

United

providing a rate of return on
capital which is sufficient to at¬

Kit

(N. Y.)

service

nual

If it's Connecticut

Smith (T. L.) Co.„..:;w..:.';tV
Concrete mixing equipment.

vested.
Now the air transport industry,
when compared with other public

1957

Co.

Auto and marine insurance

factor

30,

1957

Smith-Alsop Paint & Varnish

Southern

can

June

Divs. Paid

intervals of time.

But these funds

Quota-

12 Mos. to

Years Cash

Southeastern Public Service-,

The

DISTRIBUTORS

•

payment of interest and re¬
payment of capital at specified

and net

June 30,

Extras for

secutive
^
v

at present

Basically, re-equipment is

June 28,

Including

such

than

tion

Appro*. "
% Yield
Based on
Paymts. to

Cash Djvs.
No. Con-

major re-equipment program
as the one being undertaken
will not at first affect
operating expenses or revenues
and
therefore operating profits.
At such a time, the already nar¬
row operating profit margin is
a
very inadequate measure of the
needs of the industry and more

■

Fabulous Over-The-Counter Market:

figure was in fact a princely $76,- way towards the efficient han¬
000,000 or 2.6% on operating ex¬ dling of aircraft operations and
penses of $2,947,000,000. The pro¬ traffic on a scale undreamed of
visional figures for 1956 indicate before the war. But after the first
few years, increases of efficiency
a margin of about 1.5% on operat¬
ing
expenses
of
$3,350,000,000 had to be worked for hard and
which is a less favorable result did not come automatically with
We hope that
and amounts to an operating mar¬ increased traffic.
gin
of
$50,000,000.
Subsequent we can go on being more efficient
revision
may
well
indicate
a every year, but we are no longer
slightly higher figure, but I do not able to offset every cost increase
think that is of fundamental im¬ in this way.
In the last year in
portance.
We are still within a particular, the relentless forces of
2% order of magnitude, if that is inflation have again got under

Thursday, October

...

fl.46

23%

6.3

department store

SJteel Co.—

finished steels
,,

DetfolkjQOt complete

to possible longer record,

t Adjusted for stock dividends, splits, etc.

• -.

Volume 186

Number 5680

...

(1611)

The Commercial and Financial Chronicle

Difference Between Listed and
Over-the-Counter

securities that present
investor clientele.

good values to sell to their

on.

Numerous
counter

exchange market is often referred to as
auction market because
a
stock exchange

focal point for the concentration of
offerings of potential purchasers and

provides

bids

tion

and

marketing in

it. Genuine

auc-

security cannot be main¬

tained, however, unless there is sufficient activity
in

from

sell to

over-the-counter dealer to exe¬

for unlisted securities.

cute customers' orders

sellers for all securities listed

„■

exchange firms also deal in over-thesecurities and any that do not must buy

it.>

v,~

■

In those

quick orderly sale

are

traded on an exchange, it devolves upon the stock
1 specialist for each particular stock to create a
> market, in the absence of sufficient public orders
to buy or sell, by, in effect though not in strict
parlance, putting in an order for his own account.
In other words, if you wanted to sell 100 shares
of XYZ stock and the specialist had no order from
anyone else to buy that stock, he himself would
)
be expected to enter a reasonable bid on his own.
■j

exchange possible.

on an

An investor need not
intricacies

where less active securities

cases

Many listed securities, too, are sold over-thelarge to make a

counter when the blocks are too

himself with the

concern

enumerated

above,

his dealerquotations on

since

broker will obtain current market

over-the-counter stock or bond, and handle
purchase and sale.

any

all details of

longer trading day in the Over-the-Counter
is often a distinct advantage to the in¬
vestor.
On an exchange, securities can only be

•

■

sold in New York between the hours of 10:00 and

3:30; in the Midwest between 9:00 and 2:30, and

However, in most instances unlisted securi¬

2:30.

be sold any time between 9:00 and 5:00
Midwest, and on the West Coast it's even
longer than that. Dealer-brokers in the Over-theCounter Market there are on the job from 7:00 in

ties

can

On the Over-the-Counter Market the situation
is

Stock

quite different.■- Here there are a tremendous

listed and
'them

making

market for

instan¬

communicate with each other

can

through

taneously

private telegraph
disposal.

wires

Thus many

over-the-counter dealer-brokers, in

throughout the day with other dealer-brokers in
Boston, New Orleans, Chicago, St. Louis, Denver,

Los

Angeles, San Francisco, Seattle and other
cities from coast to coast. As an integral part of
their operations dealer-brokers stand ready to
buy and sell substantial quantities of the securi¬
ties they are "quoting" and maintain inventories

Some

them."

firms, of

course,

choose

'^to act

solely

brokers and not dealers/r

the cost

Exchange Commission Kates
Counter Dealer Charges

vs.

an
exchange-broker executes an order
in an exchange-listed stock, he tells you
price as well as the amount of his com¬
on your confirmation slip.
On the other

buys from and sells to
"net" basis

loss is included in the

there is

firmation.
acts

just

Because of

competition, the spread between the
bid and the asked figures on more active stocks
is quite narrow. In less active stocks the over-the-

counter dealer must find contra-orders
not

wish

business

his

which other dealers in all

might have

means

price he quotes you and

shown

dealer

over-the-counter

The

his profit

Values

thing, the basic fact is that the price
by the
premium the public is ordinarily willing to pay
for exchange-listed securities. Then, too, active
listed stocks and the exchange stock ticker sys¬
one

of over-the-counter stocks is not swollen

tem

provide

tend

ness.

In other fields when you

room

furniture,

fountain

buy

pen or

his con¬
usually

set of dining

what have you,

the merchant sells 'it to you at a

flat price and

commission thereto. So with the

"counter" dealer.

It is true that
often

than

not

ready vehicle for speculation and

center

short-term

buying and selling decisions on

price swings in lieu <?f "real economic

Many apparently buy stocks according to

The

their interest being merely

purposes,

price going and when."

mere

that

fact

are

lower than the

the

"exchange

auction-specialist system" the spread between bid
and ask

prices is close or narrow is no indication

that the investor gets
or

good value when he buys

that the seller obtains

price in keeping with

the intrinsic value of the stocks he

wishes to sell.

Intelligent investors are quick to recognize the
fact that

ferent

prices and values are two totally dif¬

things.

pointed out before, the assumption of inven¬

tory positions is an integral part of the
counter dealers' task.

tive in

aware

ranted hazard

over-the-

They must take the initia¬

assuming such positions.

must be

Although they

of and responsive to

of their customers,

exchange commission rates more

under

the foibles

they cannot without unwar¬

buy securities for inventory purContinued

profit rates

know

parts of the country

buying interest in

different

For

merchant does in other lines of busi¬

given security.

One, five, ten, fifty or more over-the-counter
dealers

inventory positions in the

assume

involved.

securities

if he does

This

commission charge

as a

"as principal" or
the parlance

you

it is termed in

of the securities business.

does not add any
•

l"'

vestment

hand the over-the-counter dealer more often than
not

New York, for instance, will be doing business

for you

mission

other facilities at their

security is taken from the Over-theon a stock exchange,
over-the-counter dealers ordinarily lose interest
in it, for they cannot make a profit trading in it
at rates comparable to the commission charges
of exchange firms. Though the "counter" dealers'
profit rates may be somewhat higher, they may
afford investors "better" prices than the less
expensive service of exchanges.
7
.*)?'»•
a

"where is the
When

un¬

Most of

listed stocks and bonds.

some

When

hoped-for price movement and not for .true in¬

number of dealer firms from coast to coast that
interest themselves in

of the over-the-counter dealer, be¬

Counter Market and listed

values."

morning until 5:00 in the afternoon.

obliged to operate
for this is the fact that

are

frequently necessitating his taking the risk
of an inventory position, include the extensive
searching for matching bids and offers from
potential buyers and sellers.

in the

the

Market

The Over-the-Counter

the West Coast between the hours of 7:00 and

•

continuity of any market thus created is
largely dependent upon his financial resources
and his willingness to thus risk his own moriey." '

reason

sides

■

The

services

dealers

important

Market

the

Trading

The
an

over-the-counter

of the country may
"making a market" for a

THE

parts

interest themselves in

Prospects known to the
those other dealers he
locally or in other cities), may

given unlisted security.

REPUBLIC NATIONAL LIFE INSURANCE COMPANY

first dealer, or known to
•

contacts

often

(either

individuals

include

who

are

believed

DALLAS, TEXAS

have

a
buying or selling interest in the instant
security, or investors who might be induced to
buy.

The process
sellers is

characteristic

the

;

New

major characteristic, too, of the "counter"
is

negotiation. If a gap in price exists
after a prospect is found, the transaction does not
die. Instead negotiation ensues. The mere exist¬
ence of a
buy or sell order is the incentive for
the "counter" dealer to find the opposite.
The
Over-the-Counter ,Market thus has no physical

limitations.
As
any
up a

or more can

phone and call
<

for

Insurance

during first

8 Months of 1957

Some "Counter" dealers sell

themselves, In other

dealer

cases

unlisted

security

As of December

are

Total Life Insurance
in Force

company

8/30/57

$292,000,000.00

$1,460,000,000.00

Life was number 59 among
of life insurance in force. The

31, 1956, Republic National

Life Insurance companies in amount

will have Two Billion in force on or

before the end of 1959.

REPUBLIC NATIONAL LIFE INSURANCE

they

may

have a

always. looking for

COMPANY

DALLAS

directly to inves¬

following throughout the country consist¬

ing of retail firms that

during first

8 Months of 1957

$460,000,000.00

momentarily—often while the call is progressing.

tors

in Force

frequently pick

dealer-broker and get an

order

Life

Issued

all

practical matter, though,' individuals in

city of 100,000

execution

Gain in Life Insurance

Over-the-

market

moving ahead by leaps and bounds

of constantly seeking out buyers

and

Counter Market.

Theo. P.

Beasley, President & Chairman

of the Board

page

The Commercial and Financial Chronicle

(1612)

Continued

from

page

dealers for the account of their banks and com¬

Inventory Positions

So it is with the over-the-counter dealer.

unless

poses

take

they

basic

cognizance

habitually

economic values.

out of line with

Basic economic values may appear

somewhat
nonetheless real. They con-'

elusive, but they are

sist of mathematical and

and drive him from
must be

Some

ments.

insights as to the real value of a
stock may be gained by checking such things as
its earnings and dividend records, book value and
liquidating value. But the first three of these are
tied to the past, and subject to the fact that
accounting is an inexact science. And liquidating
value may be largely of academic significance,
if the corporation is going to continue in exist¬
ence.
The anticipated future average annual net
income of a corporation may be capitalized nu¬
merically, but not without reference to many
non-numerical concepts. These include the acu¬
men, initiative, imagination and forcefulness of
the officers and directors of the corporation.
Speculation as to how the present and possible
future products of a corporation will fare on the
markets may be handled numerically only to a

which

Therefore,

buying

these

reserves

can

the

first

place only be obtained through an
adequate operating profit margin.

where ;government

stricts

other

industry. Accordingly
regulation
would

have to bear its

share of respon¬

sibility—and it is
for

heavy

shortsighted

one—

policy

which

refuses to let the airlines operate

governments in whose hands lies
the future of the air transport in¬

dustry

inadequate returns on
steps in and proceeds investment and
unduly low fare
apply to the airline industry
levels, adds insult to injury by
principles
of finance and
rate
superimposing its own accounting
policy which are currently ap¬ system on the financial
returns of
plied to public utilities with heavy
every airline. The purpose of this
capital investment and with reve¬
process, which I might call regu¬
nues
which are only a fraction
lation by evisceration, is to dem¬
of that capital.
In any industry onstrate that the airlines
are
in
of that category, a rate of return
fact
making
sumptuous
profits
of under 10% on capital invested
and fabulous rates of return. The
permits them to obtain a very
process
involves
going through
much higher operating profit in
airline accounts with a
us

not

countries

only

but

in
over

all

their

ciple

holds

down

a very

the operating
precarious margin
and

revenues

expenses.

Further, while fluctuations in
t

fortune

much
.

public

smaller

utilities

the

have

repercussions

their rate of return, air transport
is affected in the
narrow

ficult
I
>

over

reverse way. Its
profit margin is very dif¬
to
maintain
consistently

period of years since it is

sensitive

very

unforeseen

in¬

creases

costs, to the expense
of introducing new types of air¬
craft or to a
short-lived, 'but un¬
predictable decline in traffic. Any

■~*©f

these

slight

disturbances

can

wipe out the operating profit and
endanger
the
remuneration
of

capital.
Here then lies the paradox. The

air transport

heavy

industry, despite its

capital

commitments
is
still In the category of those
pub¬
lic

services

tively

which

lower

require

capital

rela¬

investment

than

some
other public utilities.
should make their financial
problems
easier
since
a
given
amount of operating profit would
give them an equitable and ade¬
quate return on investment. How¬
ever,
their problems are in

This

danger of being made insoluble be¬
cause

government

take

nature

into
of

regulation fails

account

the

profit

the

the
gree

structure,
long
of

run

margin

which

and

with

certainty,

would,
some

provide

average rate of return> on

way

adopt

Accordingly,

penses are

and
a

in
de¬

certain

ex¬

the

disallowed—a fine ges¬

great

problems

many
and is

Other expenses

with

accordance

think

preconceived, abstract ideas
have nothing to do with

which

airline

practice.

This

has

ing

the

other

many

line

has far
The

used

bring
into

air

serious

even

aid

the

they

power

those

parts

r.{

'VI

better types

and

cents

are

rising prices

with

com¬

able

line

years.

we are
being
making fare ad¬

where
most

economic

our

requires

it.

Yet

few per cent at the most

provide
our

operating

mains

the

many

'no

hand

from

certain sub¬

narrow

gin and to make
as

hold

have

not asking for a great in¬

stance to

and

held for

other

crease—a

world

by its-own efficiency and initia¬

the

—so

public

invest¬

may

where it is proud of the fact that

are

have

situation

hand
up

justments

industry

the

both

and

prevented

well

difficulties and

force it to fall back

and

fares in dollars

one

caught
longer

re¬

wield,

may

transport

objective
towards

ly two things have happened.

serious

irresponsibly,

That is and will be

have found that simultaneous¬

sults.

the

attempts

government

air

Unfortunately

as amus¬

behaviour in

cost
reach

earnings in and out
of the industry were
rising. Now
we are
heading for the jet age and

try should be

agency

say

have pursued the

while the cost of every other

the

such

modity

which have been made by outside
amateurs
and
theoreticians
to
show how the air transport indus¬
run.

evidence

and

newer and

aircraft

age?

varying the
suit the types of traffic.
We have by and large held the

the rate of return.

might be

worked

fares

excluding others as ir¬
for the computation of

These pranks

man.

providing

a shrinking process is ap¬
plied to the capital worth of the
industry
by
revaluing
certain

relevant

enough

the

misunderstandings

principal

our

have

jet

common

flated,

the

bringing the
transport within the

of the industry.
Once
operating profit has been in¬

difficulties

and

claim

despite

aim

soundness

items

treat

the teeth of

threshold

that

and setbacks

applied, for example, to deprecia¬
tion and since this item
provides
a very
important source of funds
for replacing
equipment, the jug¬
gling of accounts has struck a
heavy
blow
at
the
financial
the

there

justify

that

been

the

promise

will

industry which

as an

has made its way in

ture, but how is the airline to get
recalculated

governments

adults,

the money back?
are

If it

be thus served.

can

not for the

were

exchanges and Over-the-

Counter Markets, investors of all types would find
it almost impossible to quickly retrieve the capital

infinitesimal
does

not

percentage.
that

mean

aside the

This

have

policy of developing

set

untapped strata of the travel
But it does

ket.

that

mean

little

fraction

all

means

the

dif¬

in the world between

industry developing soundly and
an
industry
floundering
into
deficit and in danger of having to
fall back
If

hold

revenues

profit

mar¬

that,

even

sure

than

rise, it

re¬

areonstajit

require

to have adequate
funds available for repayment of

them

interest and capital over a period
of
years.
They have evidently
able

been

satisfy the

lenders
that traffic will continue expand¬
ing at a rate fast enough to bring

the

in,

money

and

hope

their

calculations will not be upset be¬
of

cause

negative

regulation

which

them to pass

government

does

allow

not

increases' in" cost
and which play havoc with their
depreciation funds. If the strict¬
ness
of
government
regulation
were
tempered with a little un¬
derstanding, it would be much
easier

business

leaning

the

for

airlines

operate

enterprises without
the taxpayer and to

writers

public, individually and
collectively, the best bargain go¬
ing today that money can buy.
governments
Members
have
had

and

IATA

the

same

thoughts,
the
same
objectives,
namely to reduce fares and rates;
and that is why, to put it bluntly,
we

are

revenues

net

rewards

only

financial

and traffic

diminishing.

the world

work

highly

with

mess

mounting and

wide

IATA

efficient

net¬

traffic

Boston

and

Corp.

Co.

publicly

offering

250,000

Commonwealtn

5.25%

Edison

preferred
share) plus

cumulative

stock at par ($100 per
accrued dividends.

preferred will not be
prior to Nov. 1, 1967
debt or preferred stock

new

redeemable

through

refunding at
dividend

cost.

lowpr interest or
Otherwise, it will

be redeemable at the option of the

$107

from
1,

ranging

redeemed before Nov.
$102 if redeemed on

1962

prices

company

after Nov. 1,

1972.

Net
new

proceeds from the sale of
preferred stock will be ap¬

plied by the company toward its
construction program which is ex¬
pected

approximately
the four years
this
amount,
it is

cost

$650,000,000

over

1957-60.

that
approximately
$370,000,000 will be provided out
of (a) cash resources at the end
estimated

1956,

the net proceeds

(b)

sales in 1957 of $50,000,000 in first

mortgage bonds and approximate¬

ly 60,000 shares of common stock
to
employees, and (c) earnings
not distributed in cash, deprecia¬
tion accruals and other

the

over

four-year

would leave
be

This

$280,000,000 to
through the sale of

securities of which the

present offering of
stock is

provisions

period.

about

provided

additional

new

preferred

part.

Commonwealth Edison Company

offer the

Both

First

The
little

our

financial obligations which

taken

The

Glore, Forgan & Co. yesterday
(Oct. 9) headed a group of under¬

public aid.

can

Pfd. Stock Offered

mar¬

we arc

trying to lift the whole rate struc¬
ture just a fraction higher.
That
ference

Commonwealth Edison

new

low fares to attract the currently

realistic

and

public service should be under

that

and

base.

small business alike

the

sound

hope

to inflate the operating
to shrink the capital

profit

volatile

does not recognize the need for

fare

Savings thereby become
society and not a problem. The beauty
of it is that the capital needs of both big and

entirely

own

toothcomb, some
degree
of
government
j relation to revenues. In the air disallowing certain items and ad¬
supervision. But having accepted
transport industry the same prin¬
justing others, all of them in such this
much, is it too much to
between

less human effort and at

ever

remuneration.

world, margin and allow it to keep pace
with our expanding capital obli¬
approach to the problems of air gations, I am confident that we
transport?
Such
an
approach shall enter the jet era as a sound
would be based on the problems industry and we shall be
ready
of air transport alone and not on to take the next
jump whenever
its apparent but erroneous simi¬ that
may happen.
For the time
larity to other forms of industry being the position is rather uncer¬
currently under government regu¬ tain.
Many airlines have com¬
lation. We acknowledge of course mitted
themselves
to
re-equip¬
the principle that air transport as ment with
jets. They have under¬

regulation

profit to

workers at

asset to

continually

government

this, the system of
regulation which re¬

government

this

ever more

engaged in the investment business thrive.

On top of all

Government Regulation
But

possible for business to obtain the
provide jobs for ever

wherewithal with which to

corporation bonds and stocks through "counter"

are

on sound business
principles and
adequate to re¬ to allow them to adjust fares to
munerate capital in the industry their
proper economic level.
and attract new capital when it
Is it too late to appeal to those
is needed.

which

and makes it

buying and selling government, municipal and

Overcoming Financial Squeeze
In the Airlines Industry
ment

our

they put at the disposal of governments, munici¬
palities or corporations. This is one of the many
reasons
why it is socially important that those

officers, of these institutions, too,

tive it has become self-supporting
and equal in credit standing to

profits. Yet

over-

through over-the-counter dealers. Investment

any

out the fluctuations in

almost

vital to

are

Through the medium of stocks and
bonds, idle capital of individuals, banks, institu¬
tions and the like flows into trade and industry

institution's

own

account do

own

both exchanges

economic life.

companies of the country

selling their

stock for their

page

insurance

contemplate

good reputation.

It is no exaggeration to say that
and the Over-the-Counter Market

Officers and directors of the 14,000 banks and

when

from

doing business with has

positions results from the fact that their market
pricing must be influenced definitely by intrinsic
corporate value factors. They must stress value
consciousness over quotation consciousness.

the major

counter firm or individual dealer you

the-counter dealers who take important inventory

consistently purchases
stocks without regard to basic economic values,
he may at times make money, but sooner or later
he will book losses. And although he may remain
"in the market" for an extended period, he can¬
not do so after his capital is exhausted,

Continued

important contribution of

It is not necessary for a firm to
million dollars to be thoroughly trust¬

worthy and to have good judgment with respect
to investment values. Just be sure the over-the-

taking inventory posi¬
prices cannot consistently be out of
line with real values. Particularly in regard to the
non-numerical elements which go into the mak¬
ing of the real value of a security in which he is
to assume a position, he must, as a general rule,
have knowledge superior to that of the lay trader.

individual

have

determinants of the real value of the

His

tions.

it is with over-the-

counter dealers.

cognizant of the elements, listed above,

are

;

other lines of business,

For survival he

scene.

you get good or indifferent treatment
and values from both large and small stores in

capital

securities in which he is

certain extent.
When

the

Just

basic economic values, the eco¬

nomic forces will in due time exhaust his

non-mathematical ele¬

panies.

If he

inventory positions at prices

assumes

1957.

Thursday, October 10,

...

is engaged in the production, pur¬

chase,

transmission,

and sale

having

tory

mately 11,000
estimated

includes

area

terri¬

approxi¬

miles and

square

population of 6,500,000.

Chicago,

approximately
with

distribution

electricity in

221

estimated

3,750,000.

The

area

miles

square

population

company

June

regulations and procedures which

30, 1957 had about 1,919,000

has made it possible for fares and

tomers.

rates

keep
during a

steadily

coming

down
decade of infla¬
tion. Governments and IATA have

For

30,

the

months

ended

cus¬

June

1957, electric operating

reve¬

of the company totaled

$370,-

cooperated to the limit to achieve

nues

these reductions and they are to¬

414,874 and net income $51,693,223,

day,

This compares with electric oper¬

whole

friends

they have been during the
post-war
of

the

period,

the

travelling

and the shipper of goods.

best

public
"

ating revenues of $360,106,248 and
net

income

of $49,260,055 for

calendar year 1956.

•

the
•

Volume 186

Number 5680

Continued

The Commercial and Financial Chronicle

from page 12

...

(1613)

that, during the next few years,
serious union goal. Yet the obstacles in the way of lopping off

The Long-Term Business

personality of the number of wartime children begin

and

structure

enumerated
•above make us invulnerable to a
business collapse characterized by
a! prolonged period of mass unemployment like that of the '30's,
it is nevertheless our contention
American

Outlook

economy

continuation of the historical
growth of only 2%% per year will

shorter work-week will become

full

day

each

week

from

be assumed in the
industrial

calculation

production

* almSst^inLrmountLlP^Tf
tw
S
en^
^
entire sPan j of

Future Level of Industrial
Production

to marry and rear families of their would be well to
own, the birth rate will probably
requhed the
start up again and -

conservative

our

nnnp

ununuea Jrom Pa9e ^

future

the years.
The

Continued from

projections

News About

Banks & Bankers

baby boom will be
Already reflected in

postwar birth rate is the trend fimifUtAroLm
creases around 11% v»v ior*
that the economy will always be toward the three-child family, and as much again in the next nfnr 90 30% by 1975* if hours worked ner
susceptible to occasional inventory this phenomenon promises to con- years
w
d
recessions of the 1949 and 1953-54 tinue.
.. *
V
mnrp
, and 12% bv 1975 and if ni,
variety.
The reason for this is
Thus, over the next two dec- continued attenuation of the
per ™n-hour expands approxi-

S Wlt^r Th® County Trust
P Company Mr. Couzens particiye^hS;
Sf
the,growth of the Cenw^kLdutfon wfth^soufce^ oT
iQfisi??.? esp^ially during the we.ek of the work-day, though this ^ately 23% we ^65. expect total a bank of more and one office to
1965-1975 period,
expect emng is through a further short- ?—
n by can and 60% by than $1 million than
to welcome
record number of objective of the unions if also ind"strial production to be about in resource^ fnd four ff^Il
next 10 or 20

wher^LshiTssSen5

where businessmen try to
we can
anticipate price movements, proa
duction and consumption will from „ew citizens. We shall also wit- attended by more problems than
burs
ours,

30% Iarger in 1965 and over 75%
\
a"j ness' in in family formations and appear the the surface. In the first SweaterF' R- B. index of industrial Yonkers N v National Bank «f
my opinion, a spectacular place, on 40-hour week has the of tbe in 1975. Expressed in terms tor of the
d
shelves and growth
in
warehouses. Fortunately
ad- m the number of households, sanction of law, and therefore has Produation (1947-49=100), which ionkcrs> N'
justments of this type are by their These developments will have an the human inertia against chang- averaged 144 in first half 1957, " State Representative Thomas J.
• » «
ing one of our fundamental stat- Phy5acal output would jump to 185 Rogers, a retired Trust Officer of
•MS shcfrt'duration^ The expl0Sive eC°"°mic impact- •
the Connecticut Bank and Trust
— — » ""
— — • locB
,m<i,
stocks

V/6-f ou
will pile up on

econ^v ,uH.°^ever' 14 shouId be realized "tes ?„ its side. The law making
lhat tbe significance of population overtime payment mandatory after
H™wth as an economic force lies 40 ,ou" has been .in operation
shakeouts milder than
numerical or quen- "early 20 years yet no successful
might otherwise have been.
'mP0trtance but
its da™Pa'8n has been organized to
effect of
tax re- and demands of the populace
A7" The ,mterest
provisions.—
In
ooeration of the
i_lu uemanus ox me popuicice; axe »~\z~~—.
7 — *
in bolstering con- shaped 111 large measure by its "dlfflculty; in breaking the day
continuous-process
Doistermg con
industries of
c0mP°|ltl0n

cLngL

in our modern
of which we have spoken have
also tended to make our recent
business

they

the
Lin-

Witness
V* 1U1COO

a
„

Viivv.

are

other stabilizers
ptncr siaoiiizers m

1954

wu-

Whim and fancy,
of

Outlook for

Long-Term

The

and

its

a^d are
^
too,

people's

a
,

•

composition

aj?e

income in early

sumer

• i. •

iff1

location,

prod

Industry, if it is to take advantage
of the opportunity and meet the

Industrial Production

down

into

g_bour

anything

shifts

other than
strongly

militates

against the general adoption of
®

°a

nn^l

4„

OKI;

1 nic

m 1965 and to 255 in 1975.
These projections of industrial
production represent, in effect, a
Recast of the rate at which our
real national income will likewise
increase
n t™'e years. They

and the

duction

1QRH

hrair

^—

pro-

diate

■

productivity.

our

the Labor Force

Population and

interest

for

the purpose

present survey
population s

the

of
is knowledge
future

age

than
ous
a

likely, this is an over-generconcession to the trend toward

shorter

work-week.

Conn.,

died

The

First

I);

.National

Bariik

auu

XX \SA11

by tbe saie Qf

ipuuu.uuu

tu
to

*puuu,uuvi

st0ck effective

new

time.

Price Trends to

1975

'Z*

SHS«=»

»:t

duction and consumption to get ggpt, 25. (Number of shares outaut of balance for short periods of standing—6,000 shares, par value

ui-uu.

? ff w Q111^
^C0mif}0n
Lco
V,
19'5, Neverthenwfivf ff base our estimates
Qnri' Praductl°n on the as-

Hartford,

Oct. 3 at the age of 69.

UUiJU

week will almost certainly
still flation is of such concern that no
the pros¬
expansion in industrial
certain of tnese trends are hp in
in 10ftn
,
.A ,
output. The magnitude of indus- readily ascertainable. We are altrial production in any particular ready
aware of several broad
future year will depend on three population movements — regional
n
factors, which we will examine migration, rural to urban resettle- nf
i
in turn: (1) the size of the labor ment, and city to suburban reloTho
r>f
'•
th° cat,on"^ut most 01 us bave "of Sr„„^aLvaI^a£t^rm ""noniahla
simple the
fnrpp C which is dependent on the
cation—-dux mosx oi us nave nox worked per week will descend in undeniable fact. The crux of but
wrnwth and aee distribution of the ycd accommodated our thinking to
a straight line from the 40 of to- matter is that the primary deterSnmilationV (2) the length of the wbat an acceleration of these day to 35 hours, or a 5-day week minant of price is labor costs,
work-week' and (3) the increase trends would mean. Of imme- 0f 7 hours per day, by 1975. More which constitute, directly and in-

position to estimate

pective

Company,

p.,PYnrMR
pc+imabt. r»p +1-10
ton, j-KT«r J., increased •, its
y T . dll-tV "»
ture behaviorinoftendency of wav dendto $50<W$500,000from $400,consumption or °00 and from stock stock divi$600,000
sales, though
a less perfect
by a
because of the

iS&SSJSS IgSp'pH ggrysw.-.M
in a

,rec»

64 years

old.

long-term survey could be cornPlete without some mention of
future price trends. Unfortunately, the outlook in this area is not
especially encouraging.
^7™?:
nmiv

SOCIETY
CITY

Total

THE

OHIO

Sept. 30,'57

June 30/57

316,206,929

323,426,125

16,953,912

18,010,595

74,697,512

resources

80,227,943

hanks

Govt,

secu¬

rity holdings
.
-

nf,-i)co

Loans & dlsco"nts
Girard

Therefore it

perfectly reasonable to expect

CLEVELAND,

Cash and due from
Cash and due from

directly, about two-thirds of total
manufacturers' costs.

SAVINGS

FOR

■

.964,862 185,506,3 2

Trust

Corn

Exchange

Bank, Philadelphia, plans to open
office

Stenton Avenue

and

The Future Increase in Labor
that alW aPPreciable increase in
structure, because we would then
Washington Lane on Oct. 28.
Productivity
unit labor costs will, sooner or
be able to determine the size of
The last of tne trio of factors later, be translated into higher
our manpower reservoir at any
The EI Dorado National Bank,
prices.
This is exactly what has
—
.
Slv'e"/one.
EI
Dorado, Kan., increased
its
As a matter of fact, the age dis- m the industrial production mix'
capital stock from $100,tribution of the population in 1965 to be evaluated is labor produc- taJlen p^c®*
or. 1975 can be predicted with a tivity. We are fortunately on fairPowerful trade unions have met 000 to $300,000 by a stock divifair degree of reliability, since we
mendous consumer market.
degree of reliability, since we y solid ground ects^nlhe^rea to llUle resistance gains in excess in dend effective Sept. 24. (Number
in endeavoring of securir,g wage from industry of
As a nation, one of our biggest
^/{hTonly SSjor variaM^we labor productivity. Granted that Productivity improvements. In of shares outstanding - 30,000

■

of the United States

The growth

intertwined with
the growth in its population. Our
human resources are pernaps our
perhaps uui
most valuable national asset, for
they are at one and the same time
a great pool of labor and a treinextricably

inabi ity to ha4e\oe
the newborn
potential. Ever since each ygal._ Armed with this in.
the Bureau formatjon we recognize the anCensus, the offidal fore
pare// Ta'ct thift fn the yea^s
agency, has e°"s's'endy immediatciy ahead our popula-

the upward trend in this field has
sometimes been interrupted, there
1S little question that management
of the
ingenuity over the long pull will
casting
fmd ways of improving production
underestimated population in- tj
wiU becom
ore
heavily techniques as rapidly if not more
creases by sizeable margins
A - weighted at the extremes of the rapidly than in the past.
the Great Depression,

"areu^acy
accixidxy

small,er Percentage of the the

S and'Tort3 opUmlst

anf begi." ta »gbt

rnate«!
mates

K
between

for^ iyuo ana
lflSTand
for

sumer in the foim of higher prices,

^
is^sTch
2®, thTnressure of
™a' /be Piessure ot wage com
?anks of labor and thus wage
waee

rarPiv

c es 1975 will fall
wm id

^ half in that period of time This

^^ed that'S

take

In other

words, we think

population will jump 25 million
during an eight-year span — a
growth in number equivalent to
present

of New

combined population
Illinois. By 1975,
head count should top

York and

the nation's

230 million.

the annual gain
will be more pro-

Undoubtedly,
*

poulation

nounced

the

following
immediate-

years

1960 than in the years

ly ahead. Currently, births and
marriages are on a plateau. This
is understandable, since it is the
-

lean baby crop
is
as

now

will

the week-end the election of

hopl

the tradition of an 1% or 2% in
annual round
0f
increases
waerP

population will mushroom from
its present level of around 170
million to a total of 195 million

the

Com¬

is no
process ofunless
perinflation

now

graphic trends—birthrates, death pected labor pool and employment
rates, etc. — we anticipate that gains over the 1957 level of 11%,

•

announced

nro-

more most fundamental requisite on the figure of 2-3%. It is nevertheless excess 0f the improvement in lasanguine view of population pros- labor side for a high level of out- worthy of note, though we do not bor
productivity
is
somehow
pects, and we believe a more real- put, will be a very modest 3%. make any case of it, that the rate brought to a halt,
istic one, than the Census Bureau, a relatively rapid improvement of improvement would assuredly
.
„
' .
..
T
On
the
basis of recent demo- beyond 1960 is indicated by ex- have ben greater than 2%% had

in 1965.

over

Bank

Can.

Toronto,

corn-

According to our calculations, amounts to of roughly rate of im- ^+,,01 prppoin^
and 1960 the growth provement an annual
2%% per of arresting the

ot^ios^as experts i"/he/ab°!' (p°o1 (p,ersons ,14,t0 yeaF- with thewhich aacords vary
6o) and in total employment, the well a. Pat.eh
generally accepted

field,

this

Canadian

The
merce,

of the past 30

While we do not pose as experts

'in

ShareS' par Value $10->

in ixs u
course
years
in its bias ?T,e a
total
population.
Not until the Reciprocally, man-hours per unit portionate growth in output,about
If wp arp to bp reaiictic
population p J
- early '60's will this labor imbal- of output have ben more than cut
the future of orices
it must be

low

b^d«d ™\Q \™nef
?^e 1bee"passed 01n to toe con

Labor efficiency at the factory hikes oomnprmatpd for hv roundj
make a complete
more than doubled in

by age scale and tbat the number of level has
y peopie 0f WOrking age will be-

to3th?sg dav it persisxs
to this day it6persfsts
toward

.,.A

recognize our

fuUire
ruiure

common

failings has been our

to° "insure"
to
insure

*!'

•

of the '30's which

of .marrying
soon

age.

happen,

the

Whtn,

large

it not been for the intervention
of WTorld War II, which arrested
20% and 30% for 1965, 1970 and the development normally to be
1975, respectively.
expected in civilian production
,
techniques. To all intents and
The Length of the Future
purposes, 1940-48 was a lost weekWork-Week
end So far as the otherwise conThe second major variable to tinuous improvement in techconsider in appraising the pros- nology is concerned.
pective expansion of industrial
It might also be argued that
production is the length of the industrial research has become a
work-week. Whether the number full-fledged business within the
of hours men toil will be lessened last decade or so and that, whereduring the next two decades is a as most improvements in techquestion in the realm of both nique were accidents in years
sociological and economic con- gone by, it is now an accident
jecture.
when they are not developed by
Undeniably, the drive for a design. Many experts on the subshorter work-week is under way ject are confidently predicting an
and it has been given impetus accelerated improvement in labor
now that Mr. Reuther has taken productivity on the basis of the
up the cudgels for a 4-day week, phenomenal growth in research
We have every reason to suppose expenditures, but for our purposes
,

■

uuxooi
The major conclusions which
emerge from our look into the
future are the following:

j. Grant Giaaaco

Hon. r. h. Win.er*
H.

Robert
Glassco

Winters

and

bank's

the

Grant

Board

Directors.

Mr. Winters
ister

was

Public

Canadian Min¬

Works from

Sep¬

tember 1953 to June 1957 and was

(1) The economy is unlikely to
previously Minister of Reconstruc¬
suffer any severe depression or
tion and Supply and Minister of
prolonged siege of mass unemployment. Business will, however, Resources and Development. He
be susceptible to occasional in- ig nQW presjdent of The Rio Tinto
ventory recessions which may slow
n
.
.
down but will not divert long- Mining company 01 canaaa J_.imterm growth trends.
ited and a director of Crown Life
(2) By 1975 the economy will Insurance Company.
be one-and-three-quarter times
Glassco is Executive Vice-

its present size.
(3) There will be a slow but
inexorable rise in the general
average

of prices amounting to

PrpcMpnt w
zilian

Traction

Hirpptnr nf re¬

Light and Power

Company Limited and a

director

1-2% per year, unless the annual 0f National Trust Company Limround of wage increases is mod- ited Canadian Cottons Limited
erated to the point where it
'
p
,
Man a ftp
squares with the improvement in and tanacl ^ l. po a
a a^ement Company Limited.
output per man-hour.
*

—~

r,/MV«MnMT7

imi

The Commercial and Financial Chronicle

(1614)

Securities
Akin Distributors,

90,000 shares of class A
common
stock, 90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).
Price—Of class A and class B common, $1.50 per share;
and of preferred, $1 per share. Proceeds—To retire bank
loans and for working capital. Office—718 South Bould¬
er, Tulsa, Okla.
Underwriter—May be Walston & Co.,
Tulsa, Okla.

buy

Brockton

Edison

Co.

(10/23)

Sept. 18 filed 30,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and to ac¬
quire securities of Montaup Electric Co. Underwriter—
To be determined by competitive bidding.
bers: White, Weld & Co. and Shields &

Probable bidCo. (jointly);

Stone & Webster Securities Corp.

Bids—Expected to be

★ Alabama NationalLife Insurance Co.

received up to

Oct. 23 at 49 Federal

Oct.

St., Boston, Mass.

(letter of notification)

37,783 shares of common
(par five cents). Price—$3 per share. Proceeds—
To selling stockholders. Office—Bessemer, Ala. Under¬
writer—Joe S. Hanson, 794 Navy Bldg., Pensacola, Fla.
Allstate Commercial Corp.,

(11/14)
stock
(par one cent), of which 233,000 shares are to be sold
for account of the company and 23,300 shares for the
account of Ben Degaetano, President of the underwriter.
Price—$1.50 per share. Proceeds—For working capital
to be used in realty financing activities.
Underwriter—
Sept.

Midland

New York

filed 256,300 shares of class A

common

Securities, Inc., New York.

Price—At par ($5 per share).

chase and place in operation pipe mill
—2961 Old Kings Road, Jacksonville,

common

Proceeds—To pur¬
equipment. Office
Fla. Underwriter

—None.

Power Co., Inc. (10/29)
Oct. 7 filed 185,000 shares of common stock (no par).
Price—To be related market price on the New York
Stock Exchange at time of public offering. Proceeds —
Electric

Freres

Bond

Co.

Underwriters—Lazard

Co. and The First Boston

Corp., both of New

York.

(

American

Income Fund,

Inc., New York
May 24 filed 500,000 shares of capital stock (par $1).
Price—At

market.

writer—None.
ment Adviser

Proceeds—For

Burton H.
—

investment.

Jackson is President.

Securities

Under¬

Invest¬

Cycle Research Corp., New

York.

American Provident Investors Corp.
Feb. 15 filed

50,000,000 shares of common stock (par one
Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex. Underwriter—Peoples Securities Co., J. D.
Grey,
of New Orleans, John S.
Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
cent).

★ American Telephone & Telegraph Co. (10/29)
$250,000,000 of 26-year debentures due Nov.
1, 1983. Proceeds—For advances to subsidiary and asso¬
Oct. 3 filed

ciated companies; for purchase of stock offered for sub¬

scription by such companies; for property additions and
improvements; and for general corporate purposes. Un¬
derwriter
To be determined by competitive
bidding.
Probable bidders: Morgan Stanley & Co.; The First Bos¬
ton Corp. and
Halsey, Stuart & Co. Inc. (jointly). Bids
—

—To

received

York, N. Y.,

up to

Room

11:30

2315, 195 Broadway,
(EST) on Oct. 29.

New

★ AMI, Inc., Grand Rapids, Mich.
Oct. 4 filed 114,323 shares of common stock
(par $3),
with warrants, to be offered for
subscription by common
stockholders at the rate of
shares

one

new

share for each four

held.

Price—$9 per share. Warrants entitle
holder to purchase one additional share at
$10 per share
for each share

subscribed for.

Proceeds—To

mortgage note, 5% unsecured notes and to
loans.

Underwriter—None.

ized under the laws of

agreed to purchase

any

the

Cage Trust,
State

retire

reduce

bank

trust organ¬

Liechtenstein,

has

unsubscribed shares.

Anita Cobre U. S. A., Inc.,

Phoenix, Ariz.

Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬

curities, Inc., Phoenix, Ariz.
★

Apache Oil Corp., Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
other corporate purposes.
Underwriter—None; sales to be
made through corporation and

APA, Inc., its subsidiary.
(10/15)

Atlanta Gas Light Co.
Sept. 17 filed $8,000,000 of first mortgage bonds due Oct.
1, 1982. Proceeds—To repay bank loans. Underwriter—
To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Equitable Securities

Corp.

and
Eastman Dillon, Union Securities &
Co.
(jointly); The First Boston Corp.; White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Shields & Co.,
Blair & Co. Incorporated. Bids—To be received
up to 11
a.m. (EDT) on Oct.
15 at 90 Broad St., New York, N. Y.
Blacksmith Shop Pastries
Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6y2% deben¬
tures dated Sept. 16, 1957 and due
Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered
in units of one $50 debenture and 20
shares of capital
stock.
Price—$90 per unit. Proceeds—To retire mort¬
gage notes and for working capital. Underwriter—Mann
&

Gould, Salem, Mass.

Brirfgeview Towers Associates, Fort Lee, N. J.
July 25 filed $360,000 of participations in partnership
interests.

Price—$10,000 each participation (minimum).

Edison Co.

18 filed

(10/30)

$3,000,000 first mortgage

collateral

and

trust bonds due 1987. Proceeds—To repay bank loans and
to acquire securities of Montaup Electric Co. Underwriter

—To

determined

by competitive

Chatham Oil

bidding.

•

Probable

bidders:

Halsey, Stuart & Co. Inc.; White, Weld & Co.
Shields & Co. (jointly); Stone & Webster Securities
Corp.; Blair & Co. Incorporated. Bids—Expected to be
received up to 11 a.m. (EST) on Oct. 30 at 49 Federal
St., Boston, Mass.
and

(H. C.) Co., Inc., Oakland, Calif.
(letter of notification) $150,000 of 5% debentures
1, 1972 (convertible at rate of $100 of deben¬
tures for 10 common shares).
Price—At par. Proceeds

ITEMS

REVISED

Producing Corp.

July 2.9 (letter of notification) 100,000 shares of 19 cent
non-cumulative convertible first preferred stock (par
30 cents). Price—$3 per share. Proceeds—For oil devel¬
opment operations. Office—42 Broadway, New York 4;
N. Y.
Underwriter—G. F. Rothschild & Co., Inc., New
York, N. Y.
V
Uranium

Chess

Corp.

•

Coastal

Ship Corp.. (10/15-17)

13 filed $6,000,000 of 6%

debentures due Feb. 1;
1968 (with warrants'to purchase 80,000 shares of common
stock of Coastal, of which 60,000 shares are included in
the
public-offering* and exercisable at $1 per; share;
and 20,000 shares to be privately placed; and warrants
to purchase an undetermined number of shares of Mc-a
Lean Industries, Inc., class A common stock at market;
Sept.

the exact number of shares to be established at

due

date.

Oct.

—For

working capital.

Calif.

Office—1122 E. 8th St., Oakland,

Underwriter—None.

California Oregon Power Co. (10/14)
Sept. 16 filed $10,000,000 of first mortgage bonds due Oct.
1, 1987. Proceeds—To repay bank loans. Underwriter—
To be determined by competitive

bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Shields & Co.; Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody &
Co. (jointly); Blyth & Co., Inc. and The First Boston
Corp. (jointly); White, Weld & Co. Bids—To be re¬
ders:

ceived
Trust

up to 9:30 a.m. (PDT) on Oct. 14, at American
Co., 464 California Street, San Francisco 20, Calif.,

★ Cameo, Inc., Houston, Texas (10/28-31)
7 filed 84,000 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—To
repay
bank loans; for capital expenditures; and for
increased inventory and working capital.
Underwriter
—Lee Higginson Corp., New York.

Canada

Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates. Price
At par (in units of $250," $500 and
$1,000). Proceeds — For purchase of mortgage bonds.
—

Underwriter—None.
Canadian Prospect Ltd., Calgary, Canada
27 filed 4,851,810 shares of common stock

Sept.
16%

cents)

Export

(par

Cana¬

share,

subject to acceptance by holders of at least 80% of
Canadian Export shares outstanding. Underwriter—None
.

Caramba Mokafe Corp. of America
July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J. Underwriter—
Garden State Securities, Hoboken, N. J.

★ Caruso Foods, Inc.

(10/29)
(letter of notification) 150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—
For working capital, etc.
Business—Spaghetti, macaroni,
etc. products. Office—2891-99 Nostrand
Ave., Brooklyn,
Oct.

New

Underwriter

—

later

supplied by amendment (expected
100% for debentures). Proceeds—Together with other

funds, to purchase five C-2 freighters to be converted
trailerships. Underwriters—Eastman Dillon; Union
Securities & Co. and White, Weld & Co., both of New

York.

Colonial Aircraft Corp.,

Sanford, Me.

July 5 filed 248,132 shares of common stock (par 100).
Price—At market.
Proceeds—To selling stockholders.
Underwriter—Glick & Co., Inc., New York. Statement
effective Aug. 10.
'
★ Commonwealth Income Fund, Inc..
Oct. 7 filed
of

(by amendment) an additional 750,000 shares
capital stock; (par $1). Price — At market.
Office—San Francisco, Calif,

common

Proceeds—For investment.

Consolidated Edison Co. of N. Y., Inc.

(10/22) \\

Sept.*20 filed $60,000,000 of 30-year first and refunding
mortgage bonds, series N, due 1987. Proceeds—To repay
approximately $43,000,000 of short-term bank notes and
for construction program.. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey,
Stuart

Co.

Boston Corp.

to 11

Inc.; Morgan . Stanley & Co.;, The First
Bids—Tentatively scheduled to be received

(EDT)

a.m.

Oct. 22.

■

Consolidated Fenimore Iron Mines, Ltd.
June 26 (letter of notification) 150,000 shares

to be offered in exchange for capital stock

of Canadian Export Gas Ltd. on the basis of 2%
dian Prospect shares for each Canadian

Price—To

into

Oct.

May 14 (letter of notification) 600,000 shares of common
stock (par $1—Canadian).
Price—50 cents per share.(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave.,, Montreal, Canada. Underwriter—,
Jean R.
Veditz Co., Inc.,
160 Broadway, * New York;
Offering—Expected at any time.
.V
*

Oct. 3

if American & Foreign

(EDT)

a.m.

★ Burns

if Aluminum Tubing Co., Jacksonville, Fla.
Sept. 26 (letter of notification) 38,060 shares of
stock.

Brockton

Sept.

•

Underwriter

apartment building.

—None.

stock

★ IN DICATES AD DITION S
SINCE PREVIOUS ISSUE

Registration

Proceeds—To

Inc.

(letter of notification)

Aug. 2

Now

Thursday, October 10, 1957

...

Anglo-American Securities, Inc.,

York.

o| common
Price—At market (closing price on To¬
ronto Stock Exchange as of June 14, 1957 was $1.82 bid
and $1.85 asked, per share). Proceeds—For mining ex¬
penses.
Office—c/o Roy Peers, 9 De CaSson Rd., Mon¬
treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.*
Montreal, Canada.
■
stock

(par $7).

Consumers

Power

Co.

(10/17)

Sept. 24 filed $35,156,700 of convertible debentures due
1972 to be offered for subscription by common stock¬
holders of record
debentures

Oct.

for each

1957

16,

shares of

the basis of $100 of
stock

held;

rights to
expire on Nov. 1, 1957. Pritfe—To be supplied by amend¬
ment. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—Morgan Stanley & Co., New
York.

••

•

Continental

Screw

Co.

(10/14-16)

Sept. 24 filed 300,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To¬
gether with funds from sale of $1,500,000 6% bonds (with

★ Carpenter Paper Co., Omaha, Neb.

stock

Oct. 2 filed 20,000 shares of

(par $1) to
be offered to selected officers and employees of
company

Massachusetts corporation

and its subsidiaries.

Cooperative Grange League Federation, Inc.
Sept. 27 filed $600,000 of 4% subordinated debentures
due Jan. 1, 1966; 10,000 shares of 4% cumulative
pre¬

stock

common

Carter-Jones

Drilling Co., Inc.
Sept. 27 filed 300,000 shares of capital stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To repay

bank loans and other indebtedness; to parti¬
cipate in the acquisition and exploration of oil proper¬

ties in

joint venture arrangements with other companies
in which the company does not propose to retain more
than a 25% interest or assume more than 25% of the
risk; and for general working capital.
Tex.

Office—Kilgore,

Underwriter—None.

....

if Centex Petroleum Corp., Ft. Worth, Texas
Sept. 30 (letter of notification) 50,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ex¬
penses incidental to start of operations.
Underwriter—
None.

Central Mortgage & Investment
Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units "of $100 of bonds and 10 shares of stock.

Price—$100.50

unit.

Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction business.
Office—Miami Beach, Fla.
Under¬
per

writer—Aetna Securities
Centurv Acceptance

Corp., New York.

Corp.
shares of

Sept. 9 filed 100,000
cumulative preferred
stock, 70-cent convertible series (par $5). Price—$10 pei
share.
Proceeds—For working capital.
Office—Kansas
City, Mo. Underwriters—Paul C. Kimball & Co., Chi¬
cago,

111.; and McDonald, Evans & Co., Kansas City, Mo.

purchase

to purchase assets of old
and of Hy-Pro Tool Co. Un¬

warrants),

derwriter—Lee Higginson Corp., Boston and New York.

ferred

stock

par

$100;

and

150,000 shares

common

stock (par $5). Price—At principal amount or par value.
Proceeds—To finance inventory purchases, to make
cap¬
ital loan advances to retail subsidiaries; to reduce bank

loans; and for working capital.
Underwriter—None,
•

Cormac

,»•

Photocopy Corp.

Office
i ■

—

Ithaca, N. Y.

(10/11-14-15)

Sept. 24 (letter of notification) 150,000 shares of common
(par 10 cents). Price—$2;per share. Proceeds—

stock
For

working capital and general corporate purposes.
Office—80 Fifth Ave., New York, N. Y. UnderwriterRoss, Lyon & Co., Inc., New York.

Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par

cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co.,

Seattle? Wash.

★ Davt^n Power & Light Co.
Oct. 8 filed

(11/6)
$25,000,000 of first mortgage bonds due 1987.

Proceeds—To repay bank loans and for construction
pro¬
Underwriter—To be determined by competitive

gram.

bidding.

Probable

Eastman

bidders:

Halsey, Stuart

Co.

Inc!;

Dillon, Union Securities & Co. and Salomon
(jointly); Morgan Stanley & Co. and
& Co. (jointly); Blyth &
Co., Inc., The
First Boston Corp. and Harriman
Ripley & Co. Inc
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly);-Lehman 'Brothers. Bid*—
Bros.

Hutzler

Hutton

Number 5680

Volume 186

;

...

The Commercial and Financial

received up to 11 a.m. (EST)
•
, - ..
Printers; Inc. v
:~

Tentatively expected to be
on

Nov. 6.

^
Check

DeLuxe

Aug. 28 (letter of notification)7 25,000 shares of common
stock (par $iy to be offered to employees and Resent

Price—$11.80 per share; "Proceeds—To ac-

stockholders.

quire new machinery and equipment." Office — 530
Wheeler St., St. Paul 4, Minn. ' Underwriter—None.

+ Oow Chemical Co. (11/4)
;
.
Oct. 3 filed 200.000 shares of; common stock
'to be offered for subscription by employees of

1
i

(par. $5)
the com¬

company

June 18

Oct. 22. Proceeds—For general corporate
Underwriter—None.

Sept. 23 filed 750,000

Price—S2 per

share.

Portland Cement Co. (10/23-24)
$15,000,000 subordinated debentures due
Oct. 1, 19'<7 (convertible on or before Oct. 1, 1967).
Price—To
be supplied by amendment.
Proceeds—To
retire bank loans and for construction program. Under¬
writer
Merrill Lynch, Pierce, Fenner & Beane, New

shares of. common stock (par $1).
Proceeds—For capital expenditures

working capital.
Business — Building material.
Underwriter—American Underwriters, Inc., Englewood;
and

Colo.

•

filed

York.

1c General Telephone Corp.
1 filed 301,995 shares of common stock (par $10)
to be offered pursuant to terms of stock plan to em¬

which

per share. Proceeds—For exploration and
acquisition of mines; and for working.capital. Office—
Jerome, Idaho. Underwriter — For public offer, John

Sherry Co., New

;

York.

„•

chase

per

share.

7";'

capital and surplus and for first year's
3395 S. Bannock St., Englewood; Colo.

Underwriters, Inc., Englewood, Colo.

American
First

deficit. Office—
Underwriter —

Insurance Co.,

National Life

stock (par $4),
publicly and
shares to employees pursuant to stock purchase
90,000 shares are to be offered

of .which
;
,

16,500
options. Price—To public, $12 per share.-Proceeds—For
expansion and other corporate purposes. Underwriter—
None.

Florida Trust,

filed

beneficial interest in
certificate. Proceeds—To

per

by purchase, lease or otherwise, and to hold,
subdivide, lease, mortgage, exchange, bargain, sell
convey lands and every character of real property.

acquire
own,

and

Underwriter—None.
Forest

of capital stock

(par 10

Proceeds—For sales pro¬
motion of company's products, working capital, addi¬
tional inventory and accounts receivable, for research
and development and for other general corporate pur¬
poses. Office—Brooklyn, N. Y. Underwriter—Mortimer
B. Burnside & Co.,
Foster

Grant

Inc., New York.;

Co.,

Inc.

expansion program and: working
r>»"ster, Mass.
Underwriter —
York.

New

For
capital. Office — L^oWertheini & Co., New
JM, Ll

(Bids

scheduled to be received up to 3:45 p.m.

(EDT) on May

101 Indiana Ave., N. W.,

General Automatics

(Bids

...

(Paine,

White, Weld & Co.)

(Wednesday)

Equip. Trust Ctfs.
$2,600,000

—Bonds

Brockton Edison Co
(Bids 11

San

EST) $3,000,000

a.m.

(Thursday)
$7,500,000

Inc.)

Co.,

Preferred

Diego Gas & Electric

Equip. Trust Ctfs.

Southern Pacific Co
(Bids

$6,000,000

EST)

noon

Dayton Power &

Debentures
Curtis; Butcher to Sherrerd; and

Bonds

Pennsylvania Power Co
(Bids

Tucson Gas, Electric Light & Power Co.—Common
(Blyth & Co., Inc. and The First Boston Corp.) 200,000 shares

October

Intra

Common
$2,496,900

stockholders—no underwriting)

Common

State Telephone Co

underwriting) $490,000

(Offering to stockholders—no

$20,000,000

(Thursday)

—Bonds

& Electric Co
$12,000,000

(Monday)

November 11

$9,000,000

(Thursday)

Common

Allstate Commercial Corp
Inc >

Securities.

(Midland

..Common

(Friday)

(Bids 11 a.m. EST)

100.000 shares

(Hayden Stone & Co.)

Common

Productions
$1,125,000

(S. D. Fuller to Co.)

Consolidated Edison Co. of New
(Bids

Bonds

Co
to be Invited 1

(Bids

Mystic Valley Gas Co.
to

(Bids

Preferred

Brockton Edison Co
'Bids

EDT) $3,000,000

a.m

General Portland Cement Co
(Merrill Lynch, Pierce, Fenner to Beane)
Public Service Co. of
11

(Bids

-Debentures
$15,000,000

a.m.

EDT)

November

Common
262,890 shares

(Bids to

Ohio Power

Cameo, Inc.

Common

Otter Tail Power
(Offering

(Bids

noor

$4,000,000
...

Co. Inc.)

$5,220,600

a.m.

.Debentures
.....

EST)

December 11

Suburban

Electric
(Bids

Co. of

$30,000,000

Co.

Bonis

$20 000.000

(Wednesday)
Equip. Trust Ctfs.

invited)

$2 600.000

Co..

to b#

Debentures

(Tuesday)

EST

Bonds

$20 000.000

(Monday)

Baltimore & Ohio RR.
Bids

stockholders—underwritten by Halsey, Stuart
&

Bids

84,000 shares

Equip. Trust Ctfs.
EST)

11:30

Bonds

(Tuesday)

Indiana & Michigan Electric

—

'Bids

(Wednesday)

Chesapeake & Potomac Telephone
Maryland
December

(Monday)

Norfolk & Western Ry

EST) $25,000,000

to be invited)

'Bids

December

(Friday)

Higginson Corp.)

a.m.

December

400.000 shares

Woodbury Telephone Co
Common
(Offering to stockholders—no underwriting) 3,533 shares
October 28

Bonds
11

Houston Lighting & Power Co
(Bids to be invited) $30,000,000 to $40,000,000

Common

October 25

Common
451,894 shares

Virginia Electric & Power Co

Co.—

(Reynolds & Co., Inc.)

(Tuesday)

be invited)

Co
(Bids

Taylor Instrument Companies
Common
(Offering to stockholders—underwritten by The First Boston
99,195

Bonds

$3,500,000

Invited)

November 20

$8,000,000

Public Service Co. of New Hampshire
(Kidder, Peabody & Co. and Blvth to Co., Inc.)

Brothers

Debentures

Middle South Utilities Inc

Bonds

New Hampshire.

Corp.)

invited) $40,000,060

to be

(Wednesday)

October 23

$2,000,000

Michigan Bell Telephone Co.

York, Inc.—Bonds

$60,000,000

EDT)

a.m.

Bonds

$6,000,000

(Monday)

November
Lawrence Gas

'Bids

(Tuesday)

October 22

$384,450

United States Coconut Fiber Corp
Common
(Southeastern Securities Corp.) 735,000 shares

Savannah Electric & Power Co

Engineering Corp

Nuclear Science &

Common

150,000 shares

Staats to Co.)

November 15

(Monday)

October 21

Bond»

be Invited)

Southern Union Gas Co
Debentures
(Snow, Sweeney & Co., Inc. and A. C. Allyn to Co., Inc.)

(Friday)

Electric
to

November

Federation Bank & Trust Co
(Offering

(William

Debentures

Stanley to Co > $35,156,760

Bonds

California Interstate Telephone Co

stockholders—to be underwritten by

common
Morgan

;

EST) $25,000,000

((Bids noon EST)

Power

(Bids

San Diego Gas

(Thursday)

October

$8,000,000

EDT)

a.m.

(Wednesday)

a.m.

November

(Wednesday)

October

(Bids

400,000 shares

Co.) $200,000

Sherry

Light Co

Merrimack-Essex

Common

Mining Corp

(John

underwriters) 1,400,000 shares

200,000 shares

No underwriting)

November 6

Common

Telephone Co

Common

Chemical Co

(Offering to employees.

Empire Sun Valley
j

(Monday)

November 4
Dow

Trust Ctfs.

300,000 shares

Townsend, Dabney & Tyson)

of $500 of deben¬

..Common
150,000 shares

Common

(Blyth &

$4,950,000

Co.)

Staats &

Co.
Webber, Jackson

6% subordinated sink¬

.preference stock, to be offered in units

300,000

Invited)

to be

Southern New England

(Lee

Aug. 17, 1956 filed $2,000,000 of

Debentures

EST) $250,000,000.

a.m.

Baltimore & Ohio RR

Common

(William

Ga.

ing fund debentures, due Sept. 1, 1971, with detachable
warrants to
purchase
160.000 shares of participating

Debentures

Siegler Corp.

Corp., Atlanta, Ga.

Inc., Washingtofl) D. C.

11:30

(Bids 11 a.m. EDT) 3,600

Common

(Wertneim & Co.)

May 23 (letter of notification)

General Credit,

Telephone & Telegraph Co.

Caruso Foods, Inc
(Anglo-American Securities, Inc.)

October 31

Pittsburgh & Lake Erie RR._—Equip.

Williams

100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls: and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road. N W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,

American

.Common

Co. Inc

$6,000,000

Washington 25,

h*s been postponed.

Com.

$8,000,000

EDT)

First Boston Corp.) 185,000 shares

(Bids to be invited)

Bonds

a.m.

(Tuesday)

October 29

(Tuesday)

Co., Inc.—

Roach (Hal)

Hartford. Conn.
Oct. 2 (letter of notification) 2,922 shares of 4%% cumu¬
lative non-convertible non-voting first preferred stock
to be offered for subscription to employees and dealer
organizations. Price—At par ($100 per share). Proceeds
—For general corporate purposes. Office—3580 Main St.,
Hartford, Conn. Underwriter—None.
General Aniline & Film Corp., New York
Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney General of the United States.
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and Glore, Forgan & Co. (jointly). Bids — Had been

D. C.t but bidding

130,000 shares

Debentures

October

100,000 shares

Coastal Ship Corp
(Eastman Dillon, Union Securities & Co. and

Common

Corp

Finance

Time

Common

October 15

Underwriter—Wertheim & Co.,

York.

300,000

Corp.)

Atlanta Gas Light Co

ic Fuller Brush Co.,

13 at Room 654,

page

CALENDAR

Common

Ulrich Manufacturing Co
.Debentures &
(White & Co.) $600,000 debentures and 30,000 common

(Offering

purchase plan to employees of the company and of
Fosgood Inc., whose salary exceeds $4,200. Proceeds —
For capital consiruction program. Office—289 No. Main

Leominster, Mass.

Johnson Service Co

$10,000,000

PDT)

a.m.

Higginson

(Lee

$1).

ic Foster Grant Co.,, Inc., Leominster, Mass.
Sept. 27 (letter of notification) 12,500 shares of common
stock
(par $1) to be offered under employees' stock

St.,

Continued

(Bids

Bonds

(Emanuel Deetjen & Co.)

Consumers

(10/15)

$300,000

(Monday)

Reading Tube Corp

Sept. 20 filed 300,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds —

■

9:30

Walworth

Inc.

Aug. 28 filed 200,000 shares
cents). Price—$2.50 per share.

& Co., Inc.)

(Offering to stockholders—no

Laboratories,

stock v(par 10 cents) to be offered in units of one $50
debenture and 20 shares of common stock. Price—$100

(Lazard Freres to Co. and The

Common

Continental Screw Co.—

Pompano Beach, Fla.

850 certificates of

Price—$1,000

Trust.

the

(letter of notification) $100,000 of 10-year 6%
debentures and 120,000 shares of common

convertible

American & Foreign Power

Oregon Power Co

Foster Grant

March

Genie Craft Corp.

Aug. 8

(Coffin to Burr, Inc.) $750,000

(Friday)

October 14

•

Phoenix, Ariz.

July 29 filed 106,500 shares of common

Corp

Lyon

(Ross,

•

(Bids

Fire Insurance Co.

Aug. 26 (letter of notification) 100,0Cf0 shares of common
stock (par $1). Price — $3 per share.
Proceeds — For

Dealer-Managers—Paine, Webber, Jackson & Curtis and
Stone & Webster Securities Corp.

$6,000,000

EDT)

noon

Cormac Photocopy

California

First International

and one-half share of General

preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. Offer to pre¬
ferred stockholders expired on Aug. 14 and that to com¬
mon
stockholders of Peninsular extended to Oct. 14.

Bonds

(Bids

October

work, and for acquisition of additional property, work¬
ing capital and other corporate purposes.- Underwriter
—None.

shares of General common for each

(Kidder, Peabody to Co.)

Common

(Kesselman & Co.) $300,000

shares of common stock (no par).
Proceeds—To pay off note, purequipment and milling facilities, for development

Price—$2

1.3

Peninsular common,

Parker-Hannifin

(Thursday)

October

Strato-Missiles, Inc.

Aug. 23 filed 500,000

ISSUE

NEW

Toledo Terminal

;

Colorado Springs, Colo.

Fall River Power Co.,
!

(11/4)

Corp.

shares of common stock, of

\i/Corp. at $1
'

basis of

Oct.

200,000 shares are to be publicly offered at $3 per share
and 140,009 shares to stockholders of Sun Valley Mining

stock (par $10)
preferred stock
(par $50) which were offered in exchange for common
and preferred stocks of Peninsular Telephone Co. on the

Empire Son Vally Mining
Aug. 9 filed 340,000

(letter of notification) 240,000 shares of common

* General
3

of its

York

General Telephone Corp., New

—

Minnesota, Inc., Denver, Colo.

Durox of

Parking, Inc.

poration and for working capital. Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.

Oct.

ployees and certain officers of corporation and
majority owned North American subsidiaries.

May 24 filed 1,480,787 shares of common
and 170,000 shares of 5.28% convertible

stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬

purposes.

unit. Proceeds—

Application is still pending with SEC.

its subsidiaries and certain, associated companies.
Subscriptions will be accepted by the company from
Nov. 4 through^ Nov. 22.
Price—To be announced by

per

expansion and working capital. Underwriter—None
named.
Offering to be made through selected dealers.

For

pany.
!.

Price—$500

tures and 40 warrants.

General

(1615)

Chronicle

invited) $4^00.000

Bonds

The Commercial and Financial Chronicle

(1616)

Continued

from page 59

Underwriter—Whitney & Co., Inc., Washington, D. C.

July 22 (letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—To
pay outstanding debt and for working capital.
Office—
225 East 46th St., New York, N. Y. Underwriter—A. G.
Bellin Securities Corp., 52 Broadway, New York, N. Y.

Isthmus

notification) 300,000
cents). Price—$1 per
—To purchase a ship and for working
writer—Anderson Cook Co., Inc., Palm

Price—$1.25 per share. Proceeds—For explo¬
improvements, expansion, etc. Office—Los
Angeles, Calif. Underwriter—Dempsey-Tegeler & Co.,
St. Louis, Mo.-Offering—Temporarily postponed.
Baltimore, Md.

Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant

•

management, and/or direc¬
tors. Price—$10 per share. Proceeds—For working cap¬
ital and general corporate purposes. Underwriter—None.

holders

& Industries, Inc.

offered

prior

$4.50

preferred

exchange for the out¬

least

85%

shares.
Exchange Agent — Howard,
bouisse, Friedrichs & Co., New Orleans, La.

State

stock.
—For

(par $1).

Price—$11

per

Bay Co. Ltd.
Bay Oil &
held of record

basis

one

new

each

20,

1957

common

the

stock

rate

owned.

1Y2

Price

each

—None.
•

per

—

■

Nuclear Science &

•

Engineering Corp.

(10/21-25)
Sept. 20 filed 100,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To prepay indebtedness to
Norden-Ketay Corp., to
purchase additional equipment and for working
capital.

common

•

determined

Ohio

by competitive

Valley

Portland

Oglethorpe Life Insurance Co., Savannah, Ga.
13 (letter of notification) 26,932 shares of com¬

mon

Power Co.

Sept. 30 filed $25,000,000 first mortgage bonds due 1987.
Proceeds—To repay bank loans and for construction
pro¬
gram.
Underwriter—To be, determined by

bidding.
The

Probable

First

Hutzler

bidders:

Halsey,

competitive
& Co. Inc.;

Stuart

Boston

Corp.; Blyth & Co., Inc.; Eastman'
Union Securities & Co. and Salomon Bros. &
(jointly). Bids—Expected to be received up to
(EST) on Nov. 19.
^
'

Dillon,

Cement Co.

1956 filed 1,600,000 shares of Capital stock (no
of which 708,511 shares are subject to an offer of

(11/19)

a.m.

Price—$260

and

filed

the rate of

units

Utilities Co.

25,135 shares of common stock (par $1) io
offered for subscription by common stockholders at

—To

five

Old American Life Co.,

one

new

share lor each 12 shares held.

supplied by amendment. Proceeds—Together
With funds from private sale of
$800,000 5%% first
mortgage bonds, series C, to be used to retire bank loans
and pay for property additions and
improvements. Un¬

one

common

unit.

per

Oct.
'

due

three

class

—

com¬

(10/28)

$5,220,600 of 5%% convertible debentures
Nov. 1, 1967, to be offered for
subscription by com¬
stockholders

record

Oct.

$100 of debentures for each

rights to expire

Nov.

12.

25,

1957

the

basis

heid;

common

Price—At par.

Proceeds—
construction. Under¬

To repay

writer—Halsey, Stuart & Co. Inc., of Chicago

tional

196,994 shares of

subscription

share. Proceeds—For operating capital for two
subsidiaries and to finance expansion program. Office—
Phoenix, Ariz. Underwriter—None.

share and

• Intra State
Telephone Co. (10/18)
Sept. 27 filed 4.900 shares of common stock to be offered
for subscription by common stockholders *om the basis

exercisable

per

one

common

$30

per

share.

units

„

■*%

one
as

Price—
will

Proceeds—For expansion:

Office—Grant Bldg., Pittsburgh, Pa.
writer—None.

program.
„

addi¬

stock being offered for

stockholders

Sept. 27, 1957; rights to expire 011 Oct. 18, 1957.
per unit.
The stock purchase warrants

warrant for each seven shares held

$21.25

(par $1)

*+>

Under-

shares.

filed

Molybdenum Corp. of America
Aug. 14 filed 196,994 shares of common stock
and six-year stock purchase warrants to
buy

Finance Corp.

For

working capitai
Underwriter—None.

other corporate purposes.

mon

and

Proceeds

• Otter Tail Power Co.

ice

derwriter—Edward D. Jones & Co., St. Louis, Mo.
&

for

share.
enlarge plant and for working capital.
Office—3101 Liberty Ave., Pittsburgh, Pa. Underwriter

Proceeds

—

Seattle, Wash.
July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in

stock

Price—$3 per share. Proceeds—For completion of plant, provide for general creditors and for work¬
ing capital. Office—Jackson, Miss. Underwriter—None,
offpring to be made through company's own agents,

Oct.

(par $1) to be offered for subscription by
holders of special participation life or endowment con¬
tracts issued by Commercial Life Insurance Co. Price—

$1 .50

Sept.

it Missouri

—None.

mon

ord

ex¬

Valve &

stock

mon

Corp.: and for payment of short term notes. Underwriter

par)

Price—At par ($10 per
share). Proceeds—For expansion of plant. Underwriter

Aug. 16 filed 2,500,000 shares of class A non-voting

acquisi¬

Manufacturing Co.
(letter of notification) 142,620 shares of com¬
(par $1) to be offered to stockholders of rec¬

Sept. 16

rescission.

of Aug. 20, 1957<

Inland Western Loan

National

Proceeds

Dec. 26,

Proceeds—For

for

Proceeds—For

stock (par $2.50), of'which 17,932 shares are
be¬
ing offered to present stockholders and 9,000 shares are
offered to employees.
Price — $11 per share. Proceeds
—To increase capital and surplus.
Underwriters—John¬
son, Lane, Space Corp. and Varnedoe, Chisholm &
Co.,
both of Savannah, Ga.

Mississippi

1957.

Hutchinson Telep hone
Co., Hutchinson, Minn.
Aug. 21 (letter of notification) 1,697 shares of common
stock to be offered for
subscription by common stock¬
as

share.

ore testing program; for assess¬
the Yellowknife properties; and for cost
concentration plant, mining
equipment, etc. Under¬
on

Sept.

the

per

properties; for

writer—Gearhart & Otis, Inc., New York. Statement
pected to be amended.

scribed for by the stockholders of the two
companies.
Financial Adviser—Morgan
Stanley & Co., New York.

Office—Sidney Bldg., Kellogg.

expenses.

Price—$1.25

ment work

bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers;
The First Boston Corp.; Merrill
Lynch, Pierce, Fenner
& Beane; Eastman
Dillon, Union Securities & Co. (joint¬
ly): Kidder, Peabody & Co. and White, Weld & Co.
jointly). Bids—To be opened on Nov. 6.

—

shares held

tion

Underwriter—Hayden, Stone & Co., New York.

—To

development and exploration costs. Office
Calgary,
Alta., Canada. Underwriter—None. Continental Oil and
Hudson's Bay Co. have agreed to
purchase 75% and,
25% respectively, of the shares which shall not be sub¬

holders

cent).

ture bond dated March 30, 1956 of Lowell Electric
Light
■

Hudson's

(Canadian funds).

National Lithium Corp., Now York
Feb. 19 filed 3,120,000 shares of common stock
(par one

★ Merrimack-Essex Electric Co. (11/6)
Oct. 2 filed $20,000,000 of first mortgage
bonds, series B,
due Nov. 1, 1987. Proceeds—For
redemption of bonds of
Lawrence Electric Co., for payment of
three-year deben¬

the rate of one share for each 15 shares of Continental
Oil stock held of record Sept. 16. 1957, while the
offering
to holders of
ordinary shares of Hudson's

Gas stock for each 15 ordinary shares
Sept. 3, 1957: rights will expire on November 1,

—

Cross,
shares not subscribed for

cents per share).

Co., Inc.,

Idaho.

Bay Oil & Gas Co. Ltd.
Aug. 27 filed 1,744,592 shares of capital stock (par $2.50)
being offered for subscription by stockholders of Con¬
tinental Oil Co. and by holders of
ordinary shares of
The Governor and
Company of Adventurers of England
Trading into Hudson's Bay (''Hudson's Bay Co."). The
offering to stockholders of Continental Oil Co. is at

mining

(17¥2

Office—Room 202 Houston Title Bldg.,

Idaho, Malcolm C. Brown is President. UnderwriterStandard Securities Corp., Spokane,
Wash., and Kellogg,

Hudson's

Price—At par

Nassau

Harland W.

• National
Cylinder Gas Co.
Aug. 28 filed $17,580,000 of Subordinated debentures due
Sept. 1,.1977 (convertible on or before Sept. 1, 1967).
Price— To be supplied by amendment. Proceeds
For
expansion and working capital.
Underwriter — Merrill
Lynch, Pierce, Fenner & Beane, New York. Offering—
Indefinitely postponed.

expansion

Mascot Mines, Inc., Kellogg, Idaho
June 3 (letter of notification) 800,000 shares of

Inc., Des Moines, la., of which Charles F. Martin is also
President. / Office—216 E. Monroe St., Springfield, 111.

11/6

any

—

Houston, Tex. Underwriter—Seott Taylor &
New York; N. Y.

share for each share held. The

new

Office—10

Biochemicais, Inc.
(letter of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$3 per share. Proceeds
—For cost of plant and inventory and-for
general cor¬

Office—Haifa, Israel. Underwriter—None.

one

investment.

National

by stockholders.

Price—At market.
Proceeds—For investment. Distrib¬
utor and Investment Manager—Horace Mann
Investors,

to subsidiaries in connection with their

President, will purchase

Fund, Inc., Springfield, 111.

Proceeds—For

Sept. 10

Weeks,

Proceeds—To increase capital and surplus. Underwriter
Maine Corp., Portland, Me. Burton M.

Underwriter—Benjamin

100,000 shares of capital stock

—First

& Co., Houston, Tex.

rate

market.

remaining 42,500 shares are to be offered to directors, ;
employees and agents of the company for a period of
14 days at $5.62 % per share.
Price—$6.25 to public.

Holy Land Import Corp., Houston, Texas

Sponsor—Ira Haupt & Co.,

St., Princeton, N. J. Investment Advisor
HoL'.ngton, Inc., same address.

five

each

porate purposes.

1957 at the rate of

Feb. 27 (letter of notification) 100,000 shares of common
•tock. Price—At par ($3 per share). Proceeds—For in¬

the

for

(par $3), of
share, are to be of¬
fered for subscription by stockholders of record
July 1,

Underwriter—None.

Insurance Co., Portland, Me.
Aug. 22 filed 53,500 shares of capital stock
which 11,000 shares, at $5.31% per

first and general mortgage bonds, series D, clue May 1,
1982. of Connecticut Power Co. on a par-for-par basis.

new

Maine

+ Hartford Electric Light Co.

Horace Mann

one

Israel Independence Issue Bonds and State of
Development Issue Bonds). Proceeds — For ad¬

vances

Oct. 8 filed $2,400,000 of 3% secured debentures, series
A, due Aug. 1, 1.967, to be offered in exchange for 3%

June 27 filed

programs.
,■

New York.

etc.

basis

.*
"Koor" Industries & Crafts Co., Ltd.
Aug. 26 filed 30,000 shares of 6%% cumulative partici¬
pating preferred stock (par IL 180—$100). Price—$100
per share (payable in cash or up to certain limits in

Israel

Colorado

•

To be named by amendment.

Hampshire Nickel Mines Ltd.
Aug. 23 (letter of notification) 600,000 shares of common
(par $1-Canadian). Price — 50 cents per share.
Proceeds—For development of property and for general
corporate purposes. Office — Suite 607, 320 Bay St.,
^Toronto, Canada. Underwriter — H. J. Cooney & Co.,

O. Box 2302,

Nassau Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock. Price—At

general corporate purposes, including carrying of larger
inventories. Business—Wholesale drugs. Underwriter—

«tock

—

Proceeds—For investment.

the company and 167,000 shares for selling stockholders.
Price—To be supplied by amendment. Proceeds — For

H^mmett (J. L.) Co., Cambridge, Mass.
Sept. 12 filed 9.365 shares of 5% preferred stock. Price—
At par ($100 per share). Proceeds—For working capital.
Business—School supplies.
Underwriter—None.
Sales
lare to be made through directors, officers and employees
©f company, subject to preferential rights of existing
preferred stockholders.

Address

Underwriter—None.

New York.

Ketchum & Co., Inc., New York City
Sept. 27 filed 210,000 shares of common stock (par $1),
of which 43,000 shares are to be offered for account of

Weil, La-

surplus.

Municipal Investment Trust Fund, Inc. (N. Y.V~
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.

withdrawn.

the 27,549 outstanding pre¬

and

Springs, Colo.

New York, N. Y.; and
Robert Garrett & Sons, Baltimore, Md. Statement later

stock

ferred

ventory, working capital,

ital

projects in the United States and Canada. Under¬

new

writers—Hornblower

basis: For each preferred share (a)

holders

the

is President.

★ Mountain States Life Insurance Co. '
Sept. 30 (letter of notification) 33,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For
cap¬

Price—To be supplied by amendment. Pro¬
ceeds—To increase working capital and for development

on the following
11% shares of com¬
mon
stock, or (b) $100 of bonds, plus 1% shares of
Stock. The offer is conditioned upon its acceptance by

standing

—Springfield, Mass. Underwriter—None. Charles Hershman

shares held.

Sept. 25 filed 316,814 shares of common stock (par 50
cents) and $2,754,900 6% first mortgage sinking fund
be

Jefferson Lake

Sulphur Co.
Aug. 27 filed an undetermined number of shares of com-mon stock (par $1), may be between 143,000 to 150,000
shares, to be offered for subscription by common stock¬

to organizers, incorporators,

shares of com¬
share. Proceeds
capital. Under¬
Beach, Fla.

D. C.
Julv 30 filed $10,000,000 of 5y2-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
stock (par 20 cents) to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture
and one share of stock., Price—Par for debenture, plus
$2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬
provements; for retirement of present preferred shares;
9nd for working capital, etc. Underwriter—None.

privilege.

construction of motel,
station. Business—Has been

Mortgage Clubs of America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit
to the company., Proceeds—To be invested in small
loans
secured by second mortgage on home
properties., Office

Inc., Washington,

Janaf,

ration costs,

1972

stock (par 10

mon

including

Philadelphia, Pa.

Steamship & Salvage Co., Miami, Fia.

(letter of

May 21

Natural Gas Corp.

expenditures,

processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,

writer—None.

July 15 filed 779,393 shares of common stock (par 50 :
cents) to be offered for subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share of
Oil & Chemical stock held with an oversubscription

bonds due

capital

roadside restaurant and gas

Inc. of Panama

tory drilling and development of presently licensed acre¬
age and for acquisition of additional acreage.
Lnder-

ctock

Gulf States

gtock.

Sept. 27 filed voting trustees covering 1,000,000 shares of
common stock (par one cent).
Price—At the market on
the American Stock Exchange.
Proceeds—For explora¬

Giant Petroleum Corp.

Insurance Corp.,

Petroleum,

Israel-Mediterranean

Feb. 18 (letter of notification) 300,000 shares of common
Price—At par ($1 per share).
Proceeds — For

Price—At par
($100 per share). Proceeds—To reduce bank loans. Of¬
fice—Galesburg, 111. Underwriter—None.

unit. Proceeds—To discharge short term obligations;
purchase merchandise inventory; and for working cap¬
ital.
Office — 1022 18st St., N. W., Washington. D.:C.

Guardian

Monticello Associates, Inc.

share for each two shares held of record Oct.

new

18, 1957: rights to expire on Dec. 16, 1957.

per

Great Lakes

one

Thursday, October 10, 1957

...

bank loans and for

new

York.

and New
'

Palestine Economic Corp.,
Sept. 26 filed i30,000 shares of

New York

common stock.
Price
share). Proceeds—For participation in
further development of Israel
industry; for capital im¬
provements; for extension of cooperative and other
banking credit; for financing of export to
Israel; for
investment in stock of two companies; and for
working

At par

($25

capital

and

None..,,

per

other
'

corporate
'
-

purposes.
-

t.. ■

Underwriter—
■

Volume 186

Number 5680

Pan-Israel Oil

basis of

Co., Panama

drilling
and
development
of presently
and for acquisition of additional acre¬

exploratory

Rose

bank loans and other debt and for working capi¬
Underwriter^—Kidder, Peabody & Co., New York.

tal.

stock

Probable
bidders: Halsey,' Stuart & Co. Inc.; The First Boston
Corp.- Merrill Lynch, Pierce, Fenner & Beane and Dean
Witter & Co. (jointly); Lehman Brothers; Kidder, Peabody 8c Co.; Kuhn, Loeb & Co. Bids—Expected to be
received 11 a.m. (EDT) on Oct. 16 at office of Common¬
wealth Services, Inc;, 300 Park Ave., New York 22, N. Y.

—26300 Lakeland

ToAbe

competitive

determined

bidding.

None.

Rule

Blvd., Cleveland, Ohio.
' '

•

.::

...

loans

capital and investment in addi¬
Office—Nashville, Ten*. Underwriter

record

ceeds

geological studies, reserve for contingent

For

—

and equipment and other re¬

liability, for machinery
Office

serves.

—

if San Diego Gas & Electric Co. (10/31)
Oct. 8 filed 375,000 shares of cumulative preferred stock
(par $20). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—Blyth & Co., Inc., San Francisco and New
York.

616 Judge Bldg., Salt Lake City, Utah.

if San Diego Gas & Electric Co. (11/7)
first mortgage bonds, series G,
due 1987. Proceeds—To repay bank loans. Underwriter
Sept. 24 filed $8,000,000 of first mortgage bonds, series
—To be determined by competitive bidding.
Probable
J, due 1987. Proceeds — To repay bank loans and for
bidders: Halsey, Stuart & Co. Inc.; Bly*h & rV
construction program.
Jr.;
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart * Salomon Bros. & Hutzler; Lehman Brothers; The First
Boston Corp.; White, Weld & Co. and Smelas & uo.
& Co. Inc.; The First Boston Corp. and Coffin & Burr,
Inc.
(jointly); Eastman Dillon, Union Securities & Co. and
(jointly); Equitable Securities* Corp.; Lehman
Merrill Lynch, Pierce, Fenner & Beane (jointly); Kuhn,
Brothers; White, Weld & Co. Bids—To be received up
Loeb & Co.
Bids—Expected to be received up to noon
to 11 a.m. (EDT) on Oct. 23 at Boston, Mass.

Price—To

Mass.

Putnam Growth Fund, Boston,
Price

Underwriter

At market. Proceeds

—

Putnam

Fund

—

Inc.. Boston.

Rapid Electrotype Co., Cincinnati, Ohio
1958;

37,840

were

issued

upon

conversion

of
of

exercise of option, and

■

•

19,

1957) on the
IV2 shares of

otherwise.

(10/15)

Calif.

Sept. 23 filed 300,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To¬
gether

with

funds,

other

retire

present

long-term

subsidiaries, to retire short-term
Corp. and The Hufford Corp., and for

debt of company and

Underwriter—William R. Staats & Co.,
Calif.

working capital.

Signet Distilleries Ltd., Regina, Canada
Sept. 27 filed 250,000 shares of 7%

if Rapid Electrotype Co., Cincinnati, Ohio
Oct. 2 filed $6,500,000 of 7% sinking fund subordinated
debentures due Nov. 15, 1967, to be offered in exchange

Under¬

Ave., N. W., Washington,. D. C.

Massachusetts
writer—None.

Los Angeles,

redeemable preferred stock
chase and 250,000 shares
in units of
per

unit.

one

deferred cumulative

(par $10) warrants to pur¬

of common stock to be offered
Price—$10

share of each class of stock.

Warrants

are

to be initially exercisable

$40 of debentures for each Colortype common share. The
offer will expire Nov. 14, 1957, unless extended, and
shall become effective whenever it has been accepted by

$1 per common share. Proceeds—For distillation equip¬
ment; cost of building and land; and for working capital
and other corporate purposes. Underwriter—Regent Se¬

holders of 40,000 Colortype common shares, but may be

curities Ltd.,

declared effective as to all or any lesser number of such

Electrotype

(52.66%)

of the outstanding Colortype common shares.

already

owns

125,787

Underwriter—None.
•

Reading Tube Corp.

(10/14)

Aug. 30 filed 155,014 shares of common stock (par $1),
subsequently amended and reduced to 100,000 shares.
Price
To be supplied by amendment. Proceeds — To"
repay bank loans and for working capital.
Underwriter
—Emanuel, Deetjen & Co., New York.
—

Regina, Canada.

Southern

New

England Telephone Co.

(10/15)

Sept. 25 filed 1,358,300 shares of capital stock to be of¬
fered for subscription by stockholders of record Oct. 7,
1957 on the basis of one new share for each four shares

Roach

(Hal)

Productions

(10/21-25)

Aug. 8 filed 375,000 shares of common stock (par $1).
Price—$3 per share.
Proceeds—For expansion of pro¬
duction of filmed television commercials and for working

Business—Produces films for television.

capital.

—Culver

City, Calif.

Office

Underwriter—S. D. Fuller & Co.,

share). Proceeds—To repay advances from Ameri¬
can
Telephone & Telegraph Co., which owns 1,173,696
shares (21.6%) of Southern capital stock. Underwriter
per

—None.

•

Roanoke Gas Co.

stock

Sept. 30

the basis of

one

share for each five

shares held; rights to expire on Oct. 31, 1957.
per

share.

—125

West

Proceeds—For construction
Church

Ave., Roanoke,

Va.

Price—$15
program. Office

Underwriter—

None.
•

equipment and

16th

Office
Underwriter—The

working capital.

Investment Fund, Inc.

May 10 filed 100,000 shares of common stock (par $1)
in connection with merger into this Fund

to be offered

Inc., Fortune II, Inc., Fortune III,
Inc. and Fortune IV, Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J.
Statement effective
of

Fund

of Fortune,

July 24.

Rockland

Sept.

Steadman

common

(par $5) being offered to common stockholders

record

Proceeds—For

St., Milwaukee, Wis.
Milwaukee Co., Milwaukee, Wis.

Sept. 18 (letter of notification) 19,160 shares of

filed

28,096

convertible

cumulative

preferred stock, series C, being offered for subscription
by common stockholders 'of record Oct. 9, 1957 on the

(10/17)
300,000 shares of common
Price—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;
Strato-Missiles,

Light & Power Co.

8,000
Proceeds-—

Price—At market.

Office—Englewood, N. J.

Texam Oil

Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders
basis of two

—To

shares for each share held. Price

new

supplied by amendment. Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purposes. Underwriter—None.
Texas

Eastern

Transmission Corp.

July 22 filed 1,000,000 shares of common stock (par $7)
being offered in exchange, on a share-for-share basis,
for

capital stock of La Gloria Oil & Gas Co. of Corpus
Christi, Tex. The offer was conditioned upon deposit o*
at least 81% (810,000 shares) of outstanding La Gloria
stock prior to Sept. 6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
Offer may be extended from time to time but not be¬
yond Dec. 5, 1957. Underwriter—None.! Statement ef¬
fective Aug. 6.

if Time Finance Corp., Norwood, Mass (10/28-31)
Oct. 8 filed $750,000 of convertible subordinated deben¬
tures, series A, due Oct. 1, 1969. Price — At 100% of
principal amount. Proceeds—To reduce bank loans and
for general corporate purposes. Underwriter—Coffin &
Titanic Oil Co.

Trlpac Engineering Corp.
(letter of notification) 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬
ment and proprietary development.
Office — 4932 St
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.

Feb. 27

Tucson Gas,

Inc.

June 7 (letter of notification)
stock

(par 10 cents).

Electric Light & Power Co.

(10/17)

Sept. 25 filed 200,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬

bank loans and for construction program. Under¬
writers—Blyth 8c Co., Inc., San Francisco and New York;
and The First Boston Corp., New York.
pay

(10/14-18)
sinking fund debentures
and 30,000 shares of class A common stock (par $1) to
be offered in units of $500 of debentures and 25 shares of
stock. Price—To be supplied by amendment. Proceeds—
To reduce bank loans, to repay all or part of an out¬
standing 5% term loan and/or provide additional work¬
ing capital.
Office—Roanoke, 111. Underwriter—White
& Co., St. Louis, Mo., 011 a best-efforts basis.
Ulrich Manufacturing Co.

Sept. 24 filed $600,000 of 6%

Union of

Sept.

South Africa

12 filed $15,000,000

10-year external loan bonds

1, 1967. Price—To be supplied by amendment.
Proceeds—For transportation development program. Un¬
derwriter—Dillon, Read & Co. Inc., New York. Offering*
due Oct.

—Postponed temporarily.

if Standard Steei Products Manufacturing Co.
Oct. 3 (letter of notification) $165,000 of 7%
10-year
debentures and 11,000 shares of common
stock (par
$2.50) to be offered in units of $30 principal amount of
debentures and two shares of stock. Price—$45 per unit.
—2836

New York.

capital stock.

For investment.

held; rights to expire on Nov. 8, 1957. Subscription war¬
rants are to be mailed on Oct. 15.
Price—At par ($25

•

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per sharp. Pro¬
ceeds—For exploration of oil properties. Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—
Wayne Jewell Co., Denver, Colo.
,

security holders. Underwriter—None. Said securities are
to be sold by holders thereof in the open market or

shares.

holders; then to public. Price—$1.25 per share to stock¬
holders; $1.37% to public. Proceeds—For expenses in¬
cidental to drilling of oil wells. Office—Suite 14, 1500

debt of Unitronics

stock of American Colortype Co. at rate

if Templeton & Lidded Fund, Inc. %
7 filed
(by an amendment) an additional

Burr, Inc., Boston, Mass.

shares are issuable in conversion of the afore¬
mentioned $656,250 debentures.
Proceeds — To selling

common

Oil Corp.

58,645

for

White class A or class B com-

Siegier Corp., Anaheim,

136,485 shares of common stock,

and

Sept. 11 (letter of notification) 40,000 shares of common
stock ((par $1) to be offered for subscription by stock¬

Sept. 20 filed $656,250 of ,5% % two-year debentures due
which

•
v

^amapo Uranium Corp.

May

Sept.

effective

Corp.

stock for each

Shacron

(New York)
Aug. 13 filed 125,000 shares of common stock (par one
cent).
Price—$5 per share. Proceeds—For exploration
and development of properties and completion of a uranium concentrating pilor mill. Office—295 Madison Ave.,
New York 17, N. Y. Underwriter—None.

*
•

share of preferred stock and

one

common

Mass.

debentures and 40,000

*
/

Schering

basis of

For investment.

Distributors.

Sobering Corp., Bloomfield, N. J.
Sept. 19 filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par $30) and 418,475 shares of
common
stock (par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be merged
with

500,000 shares of beneficial interest in the

filed

Fund.

Underwriters—Kidder, Peabody
Co., Inc., both of New York.

program.

& Co. and Blyth &

with other funds, to repay bank loans and for

gether

Oct.

(EST) on Nov. 7.

262,890 shares of common stock (par $5).
be supplied by amendment.
Proceeds—To¬

filed

construction

Oct. 8 filed $12,000,000 of

(10/23)

Public Service Co. of New Hampshire

Oct.

(10/23)

Service Co. of New Hampshire

Public

1957

Oct.

Underwriter—Steven Randall & Co., Inc., New York.
»

Oct. 22,

the basis of one new share for
rights to expire 011 Nov. .7, 1957.
by amendment. Proceeds — To
retire short term bank loans and for working capital and
general corporate purposes. Office — Rochester, N. Y.
Underwriter—The First Boston Corp., New York.
L1 I"

Sept. 30

(10/23)

each four shares held;
Price—To be supplied

«'

if Pep-So Co., Denver, Colo. .
St. Louis Insurance Corp., St. Louis, Mo.
(letter of notification) 2,886,400 shares of com- :
stock. Price—At par (10 cents per share). Proceeds ; March 27 filed 1,250 shares of class C cumulative pre¬
—For plant expansion; and other corporate purposes. * ferred stock (par $57).
Price—$97 per share.Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Office—1223 Wazee St.,*Ft. Worth, Tex. Underwriter—
Underwriter — Yates, lleitner & Woods, St. Louis, Mp.
None.
/

Price—$25

share. Proceeds — For investment. Underwriter—
Equitable Securities Corp., Nashville, Tenn. ;
Oct. 1 filed 99,195 shares of common stock (par $10) tobe offered for subscription by common stockholders of

mon

if Pleasant Valley Oil & Mining Corp.
Sept. 30 (tetter of notification) 2,000,000 shares of com¬
mon stock.
Price—At! par (five cents per share). Pro-

Inc., Washington, D. C.

Taylor Instrument Companies

Ogden Corp.

per

for working

and

Proceeds—To pay outstanding obligations to
Underwriter—None.
Tax Exempt Bond Fund,

Sept. 13 filed 127,289 shares of common stock (par $10).
Price—$13 per share. Proceeds—To retire outstanding
tional equipment.
—None.'
'•

equip¬
Y. Un¬

common

June 20 filed 40,000 shares of common stock.

Construction Co.

(C. F.)

working

and

the basis
shares of
stock; unsubscribed shares to be offered
certain employees and officers.
Price—$2 per share.

•

Underwriter—

for

options on
share for each option to purchase four

one

Ogden

Sept. 25 (letter of notification) 1,278 shares of common
(par $1) to be offered to stockholders of record on
Oct. 10, 1957 on the basis of one new share for 30 shares
held; rights to expire Nov. 9, 1957. Price — $38.50 per
share. Proceeds—For genpral corporate purposes. Office

(10/16)
Sept. *.;19 filed. $8,000,000 of first mortgage bonds due
1987. Proceeds ^-7" To: repay outstanding bank loans of
$4,500,000 and for construction program. Underwriter—
Pennsylvania Power Co.

and

machinery

four shares held and to holders of

Rotor Tool Co.

repay

facilities

produce

Syntex Corp. (Republic of Panama)
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholders
of Ogden Corp. on the basis of one new share for each

Office—705 South Husband St., Stillwater,

Stillwater, Okla.

additional

Office—70 East 45th St., New York, N.
derwriter—Kesselman & Co.. Inc..' New York.

Underwriter—Richard B. Burns Securities Agency,

Okla.

Business—To

ment.

Records, Inc.

ing capital.

if Parker-hannifin Corp., Cleveland, O. (10/28-31)
Oct. 7 filed 130,000 shares of common stock (par $1).
Price—To
be supplied
by amendment.
Proceeds—To

purchase

capital.

July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1 per share). Proceeds—For work¬

acreage

Underwriter— None.

age.

for

preferred share for each 60 common shares

one

held; rights to subscribe on Oct. 23, 1957. Price—$100
per share. Proceeds—To reduce bank loans. Underwriter
—The First Boston Corp., New York.

Sept. 27 filed voting trust certificates covering 1,000,000
shares of common stock (par one cent). Price—At mar¬
ket on the American Stock Exchange.
Proceeds — For
licensed

(1617) * 61

The Commercial and Financial Chronicle

...

if United Funds, Inc., Kansas City, Mo.
4 filed
(by amendment) an additional 1,500,000
shares of United Accumulative Fund (par $1). Price—
At market.
Proceeds—For investment.
Oct.

•

United States Coconut Fiber

Corp.

(11/14)

Sept. 30 filed 735,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For expansion program
and other corporate purposes. Office—Washington, D. C.
Underwriter — Southeastern Securities Corp., New York.
Universal Winding Co.

$300,000 of 5% /o sub¬
be offered for sub¬
scription by common stockholders of record Oct. 4, 1957,
on the
basis of $100 of debentures for each 100 shares
of stock held.
Price—At par. Proceeds—For working
capital. Office — 1655 Elmwood Ave., Cranston, R. I.
Sept.

ordinate

(letter of notification)

convertible debentures to

Underwriter—None.

Continued

page

Chronicle

The Commercial and Financial

Continued from page
Uranium Corp. of

April 9 it was reported company

America, Portland, Ore.
of common stock

(par 10
by amendment (expected
Proceeds—For exploration purposes.

$1 per share).
Underwriter—To be named by amendment. Graham
bert Griswold of Portland, Ore., is President.

to be

Al¬

York City (10/15-16)
$8,000,000 of 6% convertible subordinated
debentures due 1979. Price—To be supplied by amend¬
ment. Proceeds—To repay bank loans and for expansion
Walworth Co., New

Sept. 25 filed

general corporate purposes. Underwriters—Paine,
Webber, Jackson & Curtis, New York; Butcher & Sherrerd, Philadelphia, Pa.; and Townsend, Dabney & Tyson,
Boston, Mass.
and

Western

Copperada Mining Corp.

work, drilling costs and sur¬

and for working capital. Office — 1205 Phillips
Square, Montreal, Canada. Underwriter—Jean R. Veditz
Co., Inc., New York.
vey,

(10/23)
Sept. 25 filed 400,000 shares of common stock (par $1),
of which 100,000 shares are to be offered for account of
the company and 300,000 shares for selling stockholders.
Price—To be supplied by amendment. Proceeds — For
working capital. Underwriter — Reynolds & Co., Inc.,
Brothers Co., Tulsa Okla.

Williams

'v"''V

New York.

j;'

;,v\

Woodbury Telephone Co., Woodbury, Conn.
(10/25)
<.
\
v
Sept. 23 (letter of notification) 3,533 shares of common
common stock¬

stock to be offered for subscription by

25, 1957 on the basis of one new
share for each three shares held; rights to expire Nov. 22,
holders of record Oct.

1957. Price—At par

($25 per share). Proceeds—To repay

all short term bank notes and for construction program.

Underwriter—None.

Wycotah Oil & Uranium, Inc., Denver, Colo.
July 29 filed 375,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and for other corporate purposes. Underwriter —
Teden & Co.. Inc., New York.

Prospective Offerings
Aircraft, Inc.
July 9 it was reported company plans to issue and sell
up to $12,500,000 common stock, following spin-off by
California Eastern Aviation, Inc. of
its subsidiaries,
Land-Air, Inc. and Air Carrier Service Corp. into Air¬
craft, Inc., a new company. Underwriter—Cruttenden,
Podesta & Co., Chicago, 111.
All States
June 21 it

Freight, Incorporated, Akron, O.
announced company plans to offer public¬

was

ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from

$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program. Underwriter—To be
by competitive

determined

Probable bidders:

bidding.

Dec.

Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Halsey,

Kuhn, Loeb & Co. and A. C. Allyn
Offering—Expected late in 1957.

York.

April 9, Bayard L. England, President, announced that
year the company will probably issue about

the private

placed

G first mort¬
■:/

largely to acquire investments producing ordinary
come as well as those with growth potentials.

not

Sept, 3 it
before

Commerce Oil

June

was

Interstate Telephone

California

Co.

(11/7)

Sept 20 it was reported company plans to issue and sell
150,400 shares of common stock.
Proceeds—To repay
about $750,000 of bank loans and

for construction pro¬
Underwriters—William R. Staats & Co., Los Ange¬
les, Calif. Registration—Expected Oct. 15.
gram.

Caterpillar Tractor Co.
Oct. 9 it.

was

$65,000,000

announced company

sinking fund

plans to issue and sell

debentures.

Central Hudson Gas &

April 22 it
sell this

was

its

announced company plans to issue and

additional common

-some

Underwriter—Probably. H. M. Pay son & Co., Port¬
Me.- ^•

z/*•^:-v
Palo Alto, Calif.

•

early jn

November to do some additional financing.- BusinessElectronics. Underwriter/^May be Blyth & Co., Inc., Sgn
Francisco,
v'-v"-C"v ^
Houston Lighting & Power

(11/20)

Co.

(jointly); LazUrd Fretes & Co. and Blyth & Co.; Inc.
(jointly);

issue

-h.

—

Union Securities & Co.1
Blyth;& Co. Inc., Lazard Freres & Co. and
The First Boston Corp.
(jointly); Kidder, Peabody-&
Co. and White,'Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Go., Inc., and Lazard Freres & Co. (jointly).
;
Indiana

plans to sell not lesi
$20,000,000 of first mortgage bonds, possibly thii

was announced company plans to offer to its
stockholders the right to subscribe for 101,153

the

share of preferred stock for each 36 shares
stock held. Stockholders to vote Nov. 7 on

derwriter—The First Boston Corp., New York.

Dec.

10.

a.m.

(EST)

Oct. 29 at the Department of Justice,
Indiana Ave., N. W., Wash-

Office of Alien Property, 101

ington 25, D. C, for the purchase from the Attorney

General

one^-half

Blackstone Valley Gas &
Underwriter—To be deter¬

by competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly#.

the

number

conditioning control systems.

[

shares outstanding.

Laclede Gas Co.
Aug. 5 it was announced company

Eastern Utilities Associates

For advances to

Business—Manufactures automatic temperature and air

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).

it was announced company proposes to issue
$3,750,000 of 25-year collateral trust bonds.

of the United States of 3,600 shares of capital

}■ stock (par $5) .of this.company (representing less than

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For any bonds to bfe de¬
termined
by competitive bidding.
Probable
bidders:

sey,

construction

Underwriter—William R. Staats &

subsidiary

for

Johnson Service Co., Milwaukee, Wis. (10/29)
Sept, 30 it was announced bids will be received up to

Eastern Gas & Fuel Associates

and

Co., Los Angeles, Calif.

—

loans

'/registration about mid-October. Underwriter—Robert W.
Baird & Co., Milwaukee, Wis.
».

Industries, Inc.

Sept. 23 it was reported registration is expected of ap¬
proximately 275,000 shares of common stock, of which
about 225,000 shares are to be sold for account of com¬
pany and 50,000 shares for selling stockholders. Business
—Manufactures products for commercial and military

Co.,

bank

| Johnson Service Co., Milwaukee, Wis.
jSept. 23 it was reported a secondary offering of 100,000
Ishafes of common stock is planned for November, with

mortgage bonds, to be used for expansion program. Un¬

Electric

York.

approving financing. Price—At par ($100 per share).
Proceeds—Together with funds from sale of additional

Proceeds

(12/10)

^International Bank for Reconstruction & v >
| Development
:
Oct/ 4 it was announced Bank proposes to make an of¬
fering of $75,000,000 23-year 4%% bonds. Proceeds—For
Sgeneral operations of the bank. Underwriters—Morgan
•Stanley & Co. and The First Boston Corp., both of New

Crucible Steel Co. of America

sell

Co,

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon,' Union Securities & Co. Bids—■
Tentatively expected to be received up to 11 a.m. (EST)

Sept. 18 it

and

Electric

program.

Cook Electric Co.

April 15

reduction

—For

July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.

Darco

Michigan

to issue and sell
$20,000,000 of first mortgage bonds due 1987.-1 Proceeds

Fall, depending upon market conditions. Proceeds—Foi
program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.

one

May 20 it was reported company plans

construction

basis of

bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.

Hutzler and Eastman Dillon,

(jointly);

The First Boston

shares of cumulative convertible preferred stock on

Bids'*rentatively

Power/po.'1;

Idaho

(1) For
&

Connecticut Light & Power Co.

common

May 16 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
tall in addition, wxbetween $10,000,000 to $15,000,000
first mortgage1 bonds after Nov; l; Underwriter—To be
determined by competitive bidding./probable bidders:

(attached or in units). Un¬

Underwriter

Kidder^^eabbdy''&• Co,

scheduled for Nov/20. Registration—Expected fb Oct, !?4.

/•

to Dec. 15, 1957, probably through the sale of an
of
convertible subordinated
debentures, either

Peabody & Co., New York.

plans soon to offer

company

stockholders

common

Sept. 23. it was reported this company expects

* Commonwealth Oil Refining Co.
v
was reported company piano to raise $20,000,000

construction

Underwriter—Probably Kidder

Sept. 30 it was reported company plans to offer between

Refining Co.
this company plans to raise

bentures and common stock

mined

program.

(0. F.) J Co., Waterville, Me.

Hewlett-Packard Co.,

derwrite^—Lehman Brothers, New York.

probably in the fall, approximately $7,500,000 of sinking fund debentures. Proceeds—To finance
year,

stock¬

right to subscribe,on
73,000 additional shares of

1957 for

15,

June 24 it was announced

Brothers and

$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬

Proceeds—To

Electric Corp.

Oct.

Hathaway,

;

stock.

about

finance plant expenditures and increase

working capital.
Underwriter—Blyth & Co., Inc., New York.

wasionnqunced ,Bank, will. offer fo its

(par, $10) on the basis of one mew share
Pricc-L-$25 per share. Proceeds
—To increase: capital and surplus. Underwriter—None.

in¬

reported

aircraft and missiles.
•

& Beane.

for each 14 shares held.

standing indebtedness to

Tire & Rubber Co. financing.

—* For construction
Loeb, Rhoades & Co.

Proceeds

$30,000,000 and $40,000,000 first mortgage bonds. UnderColorado Fuel & Iron Corp.
Aug. 19 it was reported company plans to issue and sell / writer —.To - be/.determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
about $40,000,000 first mortgage bonds due 1977 (with
Securities Corp.; Lehman Brothers, Eastman Dillon,
stock purchase warrants). Underwriter — Allen & Co.,
Union Securities' & Co. and Salomon Bros. & Hutzler
New York.

its proposed

yet been determined.

land.

struction program. Underwriters—Lehman
Allen & Co.. both of New York.

of common

$15,000,000, in connection with
recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General

holders of record Sept. 25,1957 the

July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,000 (each unit expected to consist of a $25 debenture or >
$35 interim note and five shares of $1 par common
stock). Proceeds—Together with other funds, for con¬ V

expected to be received by

Byers (A. M.) Co.
May 7 stockholders approved a proposal to authorize a
new
class of 100,000 shares of cumulative preference
stock (par $100) and to increase the authorized out¬

-vi s./

Hartford National Bank & Trust Co.

(12/11)

the company on
from it of $2,600,000 equipment
followed by an additional $2,600,000 on Dec. 11. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.

program. Underwriters—Carl M.
and Merrill Lynch, Pierce, Fenner

Transmission Corp.

than

are

capital stock

City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the directors are giving consideration to the possible
future issuance
of debentures which could be used

$5,000,000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Kalsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., American Securities Corp.
and Wood, Struthers & Co. (jointly); White, Weld & Co.
and Shields & Co. (jointly); The First Boston Corp. and
Drexel & Co. (jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.

Oct. 30 for the purchase
trust certificates, to be

Interstate Gas Co.

May 3 it was announced company plans to issue some
additional first mortgage bonds, the amount of which has

;

Feb. 18, it was reported company

(10/30)

privately.^;*•'^4

Gulf

(EST) on Dec. 9.

later this

Baltimore & Ohio RR.

to issue and sell
securities some-?

Inc.; White, Weld &
& Beane and Kidder,
Peabody & Co. (jointly); The First Boston Corp. (2) For
common stock:/Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (3) Preferred stock may: be

(12/9)
July 30 it was announced company plans to issue and
sell $30,000,000 of debentures.
Proceeds—To repay ad¬
vances from American Telephone & Telegraph Co., the
parent. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
& Co.; The First Boston Corp.; Harxlman Ripley & Co.
Inc.
Bids—Expected to be received up to 11:30 a.m.

publicly or privately.
Corp., New York.

Electric Co.

;

Co.; Merrill Lynch, Pierce, Fenner

Chesapeake & Potomac Tel. Co. of Md.

prior

Atlantic City

Light Co.

able bidders: Halsey, Stuart & Co.

■

share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid & Co., Inc.,

Date indefinite.

•

Class of
(1). For
determined by. competitive Lidding. Prob¬

bonds, to be

Oct. 7 it

Cleveland, Ohio.

time in November or December of this year.
financing not yet determined.. Underwriter —

bank loans and for construction program. Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &

Coastal

Power &

in¬

Sept. 30 it was reported company plans
about $15,000,000 to $20,000,000 of new

Central Louisiana Electric Co., Inc.

placement of an issue of $5,000,000 series
gage bonds.

(10/18)

(N. Y.)

Bank & Trust Co.

was

1957. Price—$21 per share.^ Proceeds—To
capital and surplus./Underwriter—None.
:.V
C*.,
/ • v..-A
'y

Florida

& Co., Inc. (jointly).

Co. about the middle of last year arranged

crease

April 8 it was announced company plans to issue and
sell late this year $6,000,000 of first mortgage bonds.
Proceeds — Together with $4,500,000 of 4%% 12-yeai
convertible debentures placed privately, to be used to

private sale of 425,000 shares of common stock at $4 per

Bids

1957

Thursday, October 10,

announced stockholders will be given
the right to subscribe for 118,900 additional shares of
capital stock at the rate of one new share for each three
shares held of record Oct. 18, 1957; rights to expire on
it

Sept.

plans to issue and sell

repay

(Canada)

Aug. 30 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For de¬

velopment and exploratory

Federation

Illinois Public Service Co.

Central

April 30 filed 1,250,000 shares
cents). Price—To be supplied

•

...

(1618)

plans to raise

up.

$11,700,000 new money this year through sale of new
securities. Proceeds—To repay bank loans and for con¬
struction program. - Underwriter—For bonds, to be determlned by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner (jointiy).
;
Lawrence

Aug.
and

Gas Co.

(11/18)

announced the company plans to issue
sell $2^000,000 first mortgage bonds, series A,.due
21

was

Number 5680

Volume 186

1977.

loans.

Underwriter—To

bidders; Halsey,

Probable

bidding.

determined

com¬

Stuart

Sept.

Chemical

Mathieson

Olin

Proceeds—For construction program and to repay

bank

petitive

(1619)

The Commercial and Financial Chronicle

...

19 it

was

Co. Inc.; The

bentures

and

Underwriters—Snow, Sweeny & Co. Inc.
Co. Inc.,. both of New York. Registra¬
tion—Expected on or about Oct. 10.
tion program.

and A. C. Allyn &

conditions.

First Boston Corp.; Kidder, Peabody & Co.
White, Weld & Co. (jointly). Bids—To be opened

connection with

Nov. 18.

development of corporation's

April 16 it was announced company plans to sell latei
this year $40,000,000 of nst mortgage bonds- series J.
Proceeds—To refund $12,000,000 of series C bpnds due

for construction program. Underwriter
be determined by competitive bidding. Probable

Jan. 1, 1958 and
—To

bidders:

Co.

Stuart

Halsey,

Boston

Inc.; The First

Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co-, and Smith, Barney & Co. (jointly). - ^
Louisville & Nashville

RR.

- ;

sey,

Hal¬

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Pittsburgh & Lake Erie RR. (10/15)
are
to be received by the company up - to noon
on Oct. 15 for the purchase from it of $4,950,000
equipment trust certificates to mature annually from
Nov. 1, 1958 to 1972 inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Bids

(EDT)

Maine Public Service Co.

Aug. 27' it Was announced that company plans-to-issue
and sell publicly 50,000 shares of common-stock.
Under- :
writers
Merrill Lynch, Pierce, Fenner & Beane and

Plantations

—

Kidder, Peabody & Co., both of New York.»

Offering—

Expected in November. &

;

Mangel Stores Corp.;
v:~
19 it was reported company plans registration of

of convertible debentures due 1972.
Underwriter—Lee Higginson Corp., New York.
issue of $3,000,000

competitive

Utilities, Inc.

stock

bidding. Probable

Securities Corp.

reported

(jointly).:,

(11/18)

; Mystic Valley Gas Co.

Aug. 21 it was announced company plans to issue and
sell

$3,500,009 first mortgage bonds, series B, due 1977.
repay
bank loans and for construction

—

For

company

in 1958 $25,000,000

construction

was

reported company plans debenture and
Underwriter — Stroud & Co.,

stock financing.

Philadelphia, Pa.

Oct. 3 it

was

announced company plans

between

raise

Fls.800

million

early in 1958 to
million

Fls.1,000

and

(equivalent to $211,000 and $263,000,000) through a
"rights" offering' to stockholders.
Price — To be gov¬
erned by market conditions prevailing'at time...of issue.
Proceeds—For capital expenditures.

Ryder System,

Proceeds—For expansion program.

stock.

Underwriter—

Blyth & Co., Inc., New York.

plans to issue and sell
$6,000,000 of first mortgage bonds due 1987. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane;
White. Weld & Co. and Kidder, Peabody & Co. (jointly);
Blair & Co. Incorporated. Bids—Expected to be received
7 it was reported company

Oct.
*<

to 11 a.m. (EST) on Nov.

15. Registration—Planned

it Shell Transport & Trading Co., Ltd.
Oct. 3 it was announced company plans to offer to stock¬

Bids—To be opened on

000

Oct.

holders

Bids

are

expected to be received by the company up to

(EST)

Illinois

Co.

Gas

•

this company announced that "it has deferred
the first half of 1958 its plan to raise between

Aug. 29
until

$8,000,000

and

early this fall.

$10,000,000

consideration

stock
ceeds

No decision

financing,
is being given to sale of common

securities convertible into common stock.
construction

Pro¬

Underwriter — For
any bonds, to be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore, Forgan & Co.;. Blyth & Co., Inc.
—

For

Northern

Sept. 9 it

Natural

was

program.

Gas

Co/

-•

sell

Proceeds—To repay
bank loans and for construction program. Underwriter
—Blyth & Co., Inc., San Francisco and New York. Offer¬
$25,000,000 of debentures due 1977.

Ohio

Water Service

Sept. 26 it
November
Ohio.
weeks.

> ?'

reported

company

issue of $1,500,000

Registration

—

Expected in about
.... -

two or three

>„

by City Industrial Co. in connection with ac¬
quisition of Bethlehem Foundry & Machine Co. common
stock and for working capital and general corporate pur¬

500 held

Underwriter—Van Alstyne, Noel & Co., New

poses.

York.

* Toledo Scale Co.
26

Sept.

that, following merger with

reported

was

Houghton Elevator Co.* Toledo Scale Couplans to issue
some additional common stock. Underwriter—McDonald
&

Registration—Expected in No¬

Co., Cleveland, Ohio.

vember.

Toledo Terminal RR.

(10/10)

plans to sell $6,000,000

bonds due Oct. 1, 1982. Proceeds—To
refund like amount of bonds maturing on Nov. 1, 1957.
Underwriter—To be determined by competitive bidding.
of first mortgage

& Co. Inc.; The First
Bids—Tentatively expected to be received
(EDT) on Oct. 10 at 466 Lexington Ave.,

Probable bidders: Halsey,, Stuart
Boston

Corp.

to noon

York, N. Y.

Transcon

Lines,

Los Angeles, Calif.

reported company plans issue and sale in
October of 40,000 shares of common stock (par $2.50).
Underwriter—Cruttenden, Podesta & Co., Chicago, 111.

Aug. 12 it

was

„

Transcontinental

Gas

was

yet determined).

Underwriters—White, Weld & Co. and
Corp., both of New York.

Stone & Webster Securities

California

May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.

it was announced company, a subsidiary ot
Valley Gas & Electric Co., plans to issue,
year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
15

Blackstone
within

one

proposes

dispose by negotiated sale

securities mentioned in this

new

Inc.

bentures
year.

loans.

through

offering to stockholders later

Proceeds — For expansion and to reduce
Underwriter—Lehman Brothers, New York.

this

bank

its

(12/3)

Virginia Electric & Power Co.
company

South Carolina Electric & Gas

Jan. 14 it was reported company

Co.

bidders for
Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬
rities & Co., Stone & Webster Securities Corn.; White,
Weld & Co. Bids—Expected to be received on Dec. 3.
Wisconsin

Public

Service Co.

plans to issue and sel)

Halsey, Stuart & Co. Inc.;
Lehman

Brothers

Eastman Dillon,

The First Boston Corp. and
Kidder, Peabody & Co.;
Bids—Not ex¬

(jointly);

Union Securities & Co.

Southern Pacific Co.
Bids

are

Fall.

expected to be received by

the company at 165

Broadway, .New York, N. Y., up to noon (EST) on Oct.
31 for the purchase from it of approximately $6,000,000

Southern

Union Gas Co.

Halsey,

(11/11-15)

plans to issue and sell
$9,000,000 of debentures due 1983. Proceeds—Together
with funds from private
sale of $3,000,000 preferred
Sept. 23 it was reported company

about

Weld

(10/31)

plans to issue and

of first mortgage bonds late in
1957. Proceeds—For construction program and to repay
bank loans. Underwriters—To be determined by compet¬
itive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Dean Witter & Co.; Lehman Brothers; White,

sell

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:

plans to sell $20,-

of first mortgage bonds. Probable
may include: Halsey, Stuart & Co.

Aug. 27 it was announced company
,

to offer
Utilities

parent) and to common stockholders of
the latter the $2,500,000 of common stopk of Valley
Gas Co., it is to receive as part payment of certain
Blackstone properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.

bonds

Sept. 30 stockholders approved a proposal to authorize
the directors to issue about $6,000,000 of convertible de¬

the first three

paragraph.

April 15 it was also announced Blackstone plans
to its common stockholders (other than Eastern

000,000

Smith-Corona,

Pipe Line Corp.

reported company plans to sell $30,000,000
of pipe line bonds and about 750,000 shares of common
stock about the middle of November (method of sale not
Sept. 4 it

capital expenditures.

equipment trust certificates. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Co.

to issue and sell in
convertible subordinated
Underwriter—McDonald & Co., Cleveland,

was
an

debentures.

$154,000,000).
Price — To be governed by market
prevailing at time of issue. Proceeds—For

pected to be received until the

reported company plans to issue and

ing—Expected in November.

March 8 it was announced

has been made as to the form of the proposed
but!no

early in 1958 between £40,000,000 and £55,000,capital stock (equivalent to $112,000,000

Northern

conditions

Oct. 28 for the purchase from it of about
$4,000,000 equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co: Inc.; Salomon Bros. & Hutzler.
noon

Superior Tool & Die Co.
July 26 it was announced company plans to issue and
sell 150,000 shares of 70-cent cumulative convertible
preferred stock (par $10). Price—Expected to be be¬
tween $11,121/2 and $11.50 per share, depending upon mar¬
ket conditions. Proceeds—To discharge a note of $1,160,-

Associates

16.

additional

and

(10/28)

Ry.

(jointly), Bids—To be opened on Dec. 11.
'

April

Underwriter^—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
Inc.; White, WTeld & Co. and Kidder,- Peabody & Co.
(jointly); The First Boston Corp.; Lehman Brothers.

Norfolk & Western

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and White, Weld & Co.

tion program.

Valley Gas Co.

(11/15)

if Savannah Electric & Power Co.

program.

Nov. 18.

Proceeds—To rlepay bank

Transocean Corp. of

Inc.

Aug. 28 it was announced company plans to sell publicly
in the Fall an additional 200,000 shares of its common

for

bidding.

plans to issue and

of first mortgage bonds, series B, due
loans and for construc¬

$4,500,000

1987.

ic Royal Dutch Petroleum Co.

Proceeds—To-

tive

sell

Sept. 3

ard & Hart and Salomon Bros..& Hutzler.

(12/11)

Electric Co.

Suburban

Aug. 21 it was announced company

York.

common

licly offered in the United States.

billon, Union Securities & Co.,\and. Blyth & Co., Inc.
(jointly); Shields & Co.,. Halsey, Stuart,*& Co. Inc., Sav-

pected late in October.

New

(jointly).

issue of bonds may be pub¬
The Commission re¬
jected a bid of 92.64% for an issue of $6,376,000 of 20year bonds with an interest rate of 5Vi%.
Underwriter
—May be determined by competitive, bidding. Probable
bidders: Lehman Brothers, White, Weld &; Co.; Eastman
was

Registration—Ex¬

—Morgan Stanley & Co., New York.

Ritter Finance Co.

Montreal Metropolitan Commission

Sept. 26 it

announced

York.

and sell in
Proceeds—
For construction program and to reduce bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: JHalsey, Stuart • & Go;- Inc.; - Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬
der, Peabo4y & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner .&
& Webster

Co.

ering a proposal to raise between $30,000,000 and $50,000,000 additional funds this year. Underwriters—The
First Boston Corp. and A. E. Ames & Co., both of New

(par $10). Proceeds—To

in four operating

andr Stone

& Gas

★ Quebec Hydro-Electric Commission
Oct. 7 it was reported that the company may be consid¬

(11/19)

was reported company may issue
the fall about $20,000,000 of debt securities.

Beane

was

plans to raise ap¬

proximately $250,000,000 to $300,000,000 later this year
through an offering of additional capital stock to stock¬
holders. Proceeds—For expansion program. Underwriter

Sept. 10 it was reported company

May 20 it

Electric

Service

Proceeds

New

Montana Power Co.

(New Jersey)

Standard Oil Co.

Sept. 27 it was announced company

—

sell in the Fall of 1957

increase in¬
subsidiaries. Underwriter—
To
be
determined by competitive bidding. Probable
bidders: Blyth &
Co., Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Lehman Brothers; Eastman
Dillon, Union Securities & Co. and Equitable Securities
Corp. (jointly). Bids—To be received on Nov. 19.
common

vestments

Price

anticipates it will
of preferred
program.
Under¬
writer—May be Merrill Lynch, Pierce, Fenner & Beane,
Aug.

stock.

Sept. 16 it was reported company may sell 451,894 shares
of

Public

•

Halsey, Stuart & Co. Inc.; Morgan, Stanley &
Bids—Expected to be received on or about Nov. 18.

'Middle South

held; rights to expire on or about
$55 per share. Proceeds — To in¬
capital and surplus. Underwriters—G. H. Walker
Co. and Miller & George, both of Providence, R. I.
15, 1957.

crease

bidders:

Co.

at the rate of one new share

(par $20)

each five shares

Oct

(11/18)
•
Sept. 11 company applied to Michigan P. U.; Commission
for authority to issue and sell $4O,OOO,O0O of debenture.
Proceeds—To repay advances from parent. Underwriter
determined

capital stock

for

Michigan Bell Telephone Co.

Island

Rhode

19, 1957 the right to subscribe for 8,000 additional shares

June

—To

Bank of

Sept. 30 Bank offered to its stockholders of record Sept.
of

are

equipment trust certificates.. Probable bidders:

Permian Basin Pipe Line Co.
May 20 it was announced company, a subsidiary of
Northern Natural Gas Co., may issue about $25,300,000
of new securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction.
Underwriter — Glore, Forgan &
Co., New York.

expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000

Bids

business
&

next few years. Underwriters—Dillon, Read
Co. Inc. and Eastman Dillon, Union Securities & Co.

during

Long Island Lighting Co.

and for construc¬

stock, to be used to repay bank loans

Corp.

announced company plans to issue and

publicly $60,000,000 of convertible subordinate de¬
prior to end of this year, subject to market
Proceeds—For additional capital needed in

sell

$7,000,000

Co.

«Wisconsin Southern Gas Co.,

Inc.

it was reported company plans to offer up to.,
$300,000 of additional common stock to its stockholders.
Underwriter—The Milwaukee Co., Milwaukee, Wis.
July 8

Zale Jewelry

Co., Dallas, Texas

will

Sept. 24 it was announced that a full registration
be made of a new issue of securities, the amount and
other details not yet available. Underwriter — Eppler,
Guerin & Turner. Inc.. Dallas, Tex.

)

The Commercial and Financial Chronicle... Thursday, October 10,

(1620)

United

With Marshall Co,

;

(Special to The Financial

Chronicle)

Company, 765 North Water Street.

United

The

Hirsch Opens
PALM BEACH,

Co. has opened a

Branch

branch office at

288 South County Road

Monroe

Fried-

lander.

gain in net assets during

A 30%

fiscal
record
on

Oct. 8.

INVESTMENT

year

ago.

records

also

were

shareholders

told

Smith

Mr.

set

outstanding and number of share¬
dividend

income distributions,
payments
per
share,

number

and

holders,

Va/muf
iGmtfi Sacta Srwij

amounts

dollar

ip^estor purchases of fund shares

WRITE FOR

and FIF investment plans.

FREE INFORMATION

FOLDEft AND PROSPECTUS TO
YOUR INVESTMENT DEALER OR

/
^

outstanding increased
43.5% during the year-~from $14,-

20,706,974.

The

num¬

NATIONAL SECURITIES &

ber

RESEARCH CORPORATION

51%—to 45,361 from 29,942.

shareholders

of fund

distributions

Dividend

Established 1930

Yields 5.8%

was
•

for

up
.

5, N. Y*

dividend

annual

the

For

at¬

1957

cents

per

for

FUTURE

INCOME?
I

invested

tual fund
list

securities

for

.jlected

possible

GROWTH of CAPITAL
INCOME in the years

and

ahead.

moved

substantially lower.
FIF assets
five
years ago were only $11,650,249,

Noting

Mr.

that

Smith

relative

^|F\ Incorporated
\"»«rporaieii

most

shareholders

told

advantages

investment

ducing

'"c°M"/Income Fund

re¬

ever-increasing

IA mutual fund
whose tirst
wnose first
—

obiectivo
°b|ective

m$
<4
'

>*•

investment

nation's
*

-yGicu:bR,ENT

are

be¬

coming "better understood by an
segment of the

rsi

refur

risks

"We

population."
sense

trend

away

half

last

the

net

first

nine

investment

months

income

was

fiscal

year,

than

increased

ceived

was

the exercise of warrants
major factor in the in¬
crease but income from portfolio
investments also was higher. .
upon

were

versus

$2,835,668 or 20.26 per
$3,441,510 or 24.5c

prospectus

each

fund is available f-rom
your

investment dealer.

The Parker Corporation
200

Berkeley Street

Boston, Mass.

The

value

assets has

Tri-Continental's

been

maintained

shares Sinclair Oil the end of the nine months; as
Corp,; 1,200 shares Eaton Manu¬ compared with $43.78 three months
facturing Co.; 4,500 shares Wis-', earlier and $45.26 at the start of
consin; Bankshares

Corp.; 5,000
Corp.;
7,500
Products, Inc.;
27,800 shares Columbia Gas Sys¬
tem, Inc.; 4,100 shares Niagara
Mohawk Power Corp.; 2,500 shares
Northern Illinois Gas Co.; 28,000
shares

preferred

has

and

stock

decreased, its

holdings by 7%.

At the end of the fiscal year, the
K-l
portfolio consisted of 19%

bonds, 37% preferred stocks and
42%

common

stocks.
Aug. 31*
iyr»T

Total

$45,730,920 $42,078,459
outstanding
5,570,209
4,701,707

shareholders

Asset

i9r»G

assets

net

Shares
No.

Aug. 31,

value

22,965

sh.
Income per share™

$8.21

per

20,462

$8.95

$0.48

$0.46

Loomis' Profits

1957.

Marathon

are

Randolph pointed out,
that the latter figures
distorted by the influence of

the

large numbers during the current
.' ;
\ v./- •'
1

year,

Investment

Gas

Co.; 7,900 shares West Penh
Co.
United
also
solid
$348,000 Lehigh Coal and Navi¬
gation Company - 3 Vz % bonds.
Common stocks purchased in¬
cluded:
30,325 shares Canadian
International Power Co., Ltd.; 12,500 shares Chrysler Corp.; 6,000
shares St. Regis Paper Co.; 5,000
shares United States Steel Corp.;
7,000- shares Youngstown Sheet
and Tube Co.; 5,900 shares Fansteel Metallurgical Corp.; and 19,700 shares Lehigh Coal and Navi¬
gation Co.

assets

$310,862,255

Chairman

at- Sept.

stated.

30;

This

th^n three months earlier. During
the first nine

months, new funds
totaling $15,033,243 were received

for

stock

common

exercise

dolph went

issued

warrants/'
on

the

net

Shields,

nationally-

and member of

advisory board of FIF Man¬

agement Corp., said he visualizes
a

$700

billion

annual

gross

$55,835,479.

the

war¬

three months with $1,received for 102,297 new

past

816,798
shares

common

stock

issued,

but the rate of exercise was down

sharply

less, than

third

that in the preceding quarter. At

Sept. 30, outstanding shares of TriContinental
bered

common

stock

num¬

6,423,100 and the remaining

warrants

had

been

reduced

na¬

lion, as a result of greater produc¬
tivity and a probable inflationary
price rise of V/2% compounded
We

are

flation,

living in

Mr.

Shields

dividend

from

net

cember

the

year,

expected, as usual, to
largest payment of the

reflecting year-end extra

ago

(Special to The Financial Chronicle)

HARTFORD, Conn.
P.

—

A Diversified Investment

Edward

Ferrante and David R.

—inone

Marsh

associated with Coburn &

of in¬

Middlebrook,

said,

hence

Security

COMMON STOCKS selected for possible long-term

Trumbull Street.

Incorporated,

10 0

growth and income— PREFERRED STOCKS and
BONDS selected primarily for income—you share in]
the ownership of all three with an investment in THE
PUTNAM FUND.

Affiliated

fund pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to

Mutual

Investment

Fund under pro¬

fessional management, THE PUTNAM FUND
a
diversified investment in more Than 150

Fund

U. S. incorporated mutual

"balanced"

companies and

many

provides
selected

different industries.

Ask your Investment Dealerfor Free Prospectus
containing all thefacts— or mail the coupon below.

Common Stock Investment Fund
Investment

rCALVIN BULLOCK

objectives of this Fund
possible
long-term
capital
and
growth for its shareholders.

are

income

Established 1894

Prospectus

ONE WALL STREET, NEW YORK 5

upon

Putnam Fund Distributors, Inc.
60

Please send
Name

Lord, Abbett & Co.

Name.

New

York*

—

Chicago ]

-4 "

Atlanta

—

Los Angeles

cho

Congress Street, Boston

request

Address

Free

invest¬

ment income for 1957 to be paid
to common stockholders in De¬

totaled

year

age

final

Two With Coburn Firm

are now

annually.

1,500,384.
Commenting on dividend policy,
Mr. Randolph pointed out that the

at this
time net assets were $53,249,219
with 1,194,682 shares outstanding
among 8,530 shareholders.

tional product by 1966, compared
with the current rate of $434 bil¬

Ran¬

„

Murray

upon

Mr.

to add that

rants continued to be exercised in

American International Corpora¬
gain dividend of $1.85 per share tion announced that the net asset
payable Oct. 25, 1957, to stock of value of its 2,250,600 shares com¬
record Oct. 7, 1957. This compares mon stock on Sept. 30, 1957 is
of the importance of opportunity
witu a 1956 capital gains distribu¬ estimated at $15.80 per share com¬
—without any guarantee—as the
tion of $2.62.
pared with $18.23 per share at
durable characteristic of securi¬
Dec. 31, 1956. The asset value at
At the same time, the directors
ties."
declared a year-end income divi¬ Sept. 30, 1957 is after the payment
Mr. Smith said the American
of 35 cents per share in capital
dend of $0.45 per share making a
economy is in "a prolonged period
gains dividend in June 1957.
At
of dynamic growth," and added total of $1.35 paid from investment
Sept. 30, 1956 the asset value was
during
1957,
compared
that "temporary contractions" in income
$18,115 per share.
Capital gains
with $1.28 during 1956. On Oct. 7,
the
nation's
growing
economy
dividends aggregating $1.27 per
will occur from time to time as 1957, there were 1,347,526 shares
share were paid in the interven¬
a natural adjustment in
balancing outstanding among 9,500 share¬ ing .12 months.
7 holders, and
assets

known economist

m .r

valued

were

the
approxi¬
mated the $310,999,768 reported at
the start of the year but was less

Electric

Directors of Loomis-Sayles Mu¬
tual Fund have declared a capital

supply and demand.

"AddressJ

which

corporation's warrants

have been exercised in relatively

shares Public Service Electric and
t

Mr,

however,

shares Tinnerman

issued

stock

common

re¬

■

1,000 to 22,965 and there
5,,570,269 shares outstanding,

investment as safe, and others
unsafe," he said. "There ap¬
pears to be a wider recognition

for

funds

new

■

the

and

from

Earnings

class A; .2,700

Shareholders

from

thinking that blindly cata¬
logues certain media of savings

the

than $2 million

securities

and the means

Js*

the

the same period of 1956, ac¬
cording to Mr. Randolph.
r i
'

June 30, 1957, net asset Jvaltie was asset value, assuming exercise of
in $96,697,299 or $6.87 per share, u . . all warrants, which'stood at $34.35
*•'
During the third quarter of 1957 at "Sept. '-30 as ccimpared with
reaching a total of $45,730,920 and sales of portfolio common stocks $37.50 at mid-year and $36.17 at
giving K-l fourth place among included: 7,500 shares Atlantic Re¬ Dec. 31, 1956. In terms of common
Keystone's series of 10 domestic fining Co.; 1,900 shares Shell Oil stock
outstanding,
assets
were
funds totalling more than
$319 Co.; 3,840 shares Hancock Oil Co. equivalent to $39.27 per share at
the

six months

securities

value

same

of last

per share.
Net assets

capital gains payments to an increase of more than 400,000
shareholders totaled $2,277,767 or in the last six months.
11c a share, compared with $2,K-l, which was exclusively a
,524,433 or 17Y2C a share the year preferred stock fund until share¬
before!
holders voted a change in March
Net asset value per share de¬ of 1956, has added to its bond and
clined to $3.62 from $4 at the end Common stock holdings in the past
market

quarter

Assets

shareholders.

jumped

were

of August last year as the

third

1957

investing'

the

ments

million.

for

reasonably wellcomparison with
of United, based on
distribution
and
the
net
asset
the decline in security prices in
the indicated market value of in¬
value of $8.21 per share, the fund
vestments held, totaled $88,422,644 general
thus far this year, Mr.
showed a 5.8% return.
or $6.28 per share at Sept. 30,1957,
Randolph reported. Better-thanK-l reached new highs in total versus
$90,759,475 or $6.45 per market investment performance
assets,
number
of
shares
and share at the same date in 1956. At is reflected v in '^eomiWdn^ share

$2,571,255 or
14 cents a share, from $1,634,869
or 12 V2 cents a share during fiscal
amounted

year

the

year.

share, according to the annual re¬
port for the- fiscal year ended
Aug. 31.
Based on the regular

1956.

Broadway, New York

120

for

Net invest¬

$2,606,903 or 18.5c per share versus
by higher money rates, Keystone
$2,336,898 or 16.6c per share last
Income Fund K-l
increased its
year. Net realized gain on invest¬

number

FIF shares

425,391

Reflecting the increasingly

assets
a

results

of Trir

income

Net investment

an¬

share, approximately the

per

tractive income situations created

possible

increase of $17,278,1,52 over
of $57,751,533 on Aug,

net
30

made

was

third quarter of 1957.

Keystone K-l

reported

fund,

mutual

record

The

FUND

nationally-dis¬

the

tributed

Inc.

Fund,

President

A MUTUAL

In¬

reach a
year-end total of $75,029,Aug. 31, Charles F. Smith,

dustrial
685

enabled Financial

1057

Oct.

Corporation

Continental
Corp., the nation's
largest diversified, closed-end in*
ment income for the three months vestment company, reached a rec¬
potential of rising in price with
increased to $913,581 or ord $7,634,894 for the first nine
inflation and thus avoiding the period
6.5c per share against $776,953 or months of 1957, it was. reported
damage of inflation to fixed dollar
5.5c per share last year.
by Francis F. Randolph, Chairman
investments.
Net realized
gain on invest¬ of the Board and President. This
ments amounted to $814,534 or 5.8c was about $1,100,000 more than

for investment in
stocks, which have the

common

Up 30 Percent

under the

direction

nounced

necessity

the

FIF Assets

Fla.—Hirsch &

At Record

$88 Million

By ROBERT R. RICH

Income Now

Marshall

With the

now

Tri-Con tincntal 7

Corp.

Assets at

MILWAUKEE, Wis. —Clark E.
Nixon is

1957

Putnam Fund Prospectus,
—

Number 5680... The

Volume 186

Commercial and Financial Chronicle

(1621)

Special dividends received by Tri- tal's investment policy in the past Minnesota Mining & Mfg., leaving
on investment hold¬ three months.
20,000
shares;
4,800
shares
of
Aluminum Co. of America, leav¬
New
ings. The Chairman also stated
common
stock
holdings
that an extra distribution, to be added in the third quarter were ing 52,000 shares; 2,400 shares of
designated a capital gain dividend 9,300 shares of United Aircraft American Smelting & Refining,
for Federal income tax purposes, Corp.,
18,000 shares of Parke, leaving 2,600 shares, and 15,000
shares of Reynolds Metals, leav¬
will be declared on the common Davis &
Co., 30,000 shares of

Continental

ing 95,000 shares.
Among other portfolio reduc¬
for payment early in 1958. This I-T-E. Circuit Breaker
Co., 60,000
distribution will include a divi¬ shares of Arkansas-Louisiana Gas tions were: 8,700 shares of National Cash Register, leaving 20,dend
of $6,000,000
received by Co., and 8,000 shares of American
Stock

near

the

end

December

Schering Corp.,

18,000

Stores Co.
In addition,
140,000
y,
T r i-Continental Financial shares of Stanrock Uranium Mines
Corp., earlier this year. Mr. Ran¬ were received upon exchange of
dolph pointed out that after this units of that company.
extra distribution is made, TriHoldings increased included
Continental intends to conform to
Warner-Lambert
Pharmaceutical
its historical dividend policy by
Co., by 6,700 shares; First National
retaining all long-term gain, no City
Bank, by 1,400; Chas. Pfizer
matter from what source received, and
Co., by 2,700; Illinois Power
designating the amount thereof
Co., by 8,000; Montana Power Co.,
to the holders
of the common
by 5,600; Northern Indiana Public
stock, and paying the tax thereon Servicer
Co., by 7,000; Oklahoma
for their account.
Gas & Electric Co., by 10,800; and
Common
stock
holdings
ac¬ Newport
News Shipbuilding &
counted for 72.2% of investment Dry Dock Co., by 6,000.
assets at the end of the third
Investment positions were elimi¬
quarter as compared with 73.3% nated through the sale of 12,000
on
June 30.
Mr. Randolph ex¬ shares- of Johns-Manville
Corp.

say

•

foli°.'

if©

;

corporation's largest single category for investment with the $68,311,106 invested in that industry
representing 30.9% of the corporation's net asset value.
The
next two largest investment categories were public utilities with
$35,073,558 of investments reprq-

^
®

Corp.

National's Sales

"JgJ1

Sales of the National Securities
Series of mutual funds in Septem-

american

established

ber

A total net asset value of

record

for

the

month of $5,961,774,

according to
$219,-; figures released by E. Wain Hare,

888,810

In addition to

nwfwp'
MnfnL U-S.
I
and

The current

I1VC.

Selected Investments Co,

The

the

others.

Ford

new

time

asset

value

last

per

the
$24.58,

was

vening 2 for 1 stock split.
During the nine months covered
by the report the proceeds from
the sale of portfolio securities ex¬
ceeded the cost of securities pur¬
chased by $8,620,052, sales amount¬

$23,591,792 and purchases
$14,971,740. Capital gains realized
during the period amounted to
$1.14 per share.
New additions to the portfolio
during
the
most recent
fiscal
quarter were: 35,900 shares of
Sherritt Gordon Mines, and 9,500
shares of Mead, Johnson Company.
Purchases which increased port¬
folio
holdings included:
10,000
shares of Westinghouse Electric,
for a total of 35,000 shares in the
portfolio; 7,000 shares of Ideal
Cement, for a total of 10,000
shares
in
the
portfolio; 10,000
ing to

timely
suggestion

shares of Home Oil for

30,000

investment

substantial

Eas

Consumer

shares;

ELECTRONICS

FUND, INC.

Television Shares

Management Corp.

St., Chicago 3, HI.

ical & Dye,

ame.

fy-Stofe

I
>

• >

company

lighting, Consolidated Edison, etc.

company now receives gas

Som three^pipelines, Algonquin,
Home and Tennessee.
Gas

purchased from Tennessee

is cheaper than that obtained from
the two other companies, and an

application is currently

'pending

J?CiUd1^
J?
f utilities,

metropolitan area and is said to
represent the equivalent of oil at

Placed

?LglS?l™YSl aJ?0ara«Sonn-0mie2?}
J™i<7
id«« '
.ln
Z
to $5,917,000 ™
in 1956, an increase

™s highly favorable competitive
position has resulted in a 65%

a?#

Market

of\n

BIyth-Halsey, Stuart-Lehman-Van
Ingen-Ohio Co. group offer high¬
way construction bonds.
Blyth & Co., Inc., Halsey, Stuart
Inc., Lehman Brothers, B. J.
Ingen & Co. Inc., and The
Ohio Company are joint managers
of the group that publicly offered
on Oct. 8 an issue of $31,000,000
State of Ohio major thoroughfare
construction bonds, series G, at

nearly 350%.
The

iaries

company

an<f coal

galIon

at $13 a ton.

heating saturation and 100% satunew residential con-

ration for all

with its subsid-

serves an area

SrqUare mUf
Jersey
and

1(£ a

some

struction.

1100

NeW[ Y°-rk' N,^
Pennsylvania, with

recentlv

fnr

ThA

been raised by
^hirh

^hu

afllhree suppers
in

«)52fiO 000

ner

& Co

headquarters in Nyack, New York.
m to b
added to Roland's
area extends from a point in
nnnilQi
if the new rates are
New Jersey six miles north of the
approved by the FPC. Rockland
George Washington Bridge, north- has
applied to the Commission for
erly for approximately 29 miles esca]ator clauses to cover rising
along the west bank of the Hudson cos^s jn future
River to a point near the Bear
'nmmnn
prices to yield from 2.20% for Mountain Bridge. From the Hudthose due March 1, 1958 to 3.30% son, the company's territory in
^based on thexur-

Van

The

^ }??AsrpCounter

for the

1971

and

1972 maturities.

The group was awarded
on a

New York State extends westward

the issue to the Delaware River, embracing

Rockland County and parts
of of Orange and Sullivan Counties,

bid naming a net interest cost all of

3.324%

for

combination

cles

public

Ripley & Co. Inc.; Smith,
folio; 5,000 shares of Allied Chem¬ Barney & Co.; Drexel & Co.;
leaving 5,000 shares; Glore, Forgan & Co.; Goldman,
7,000 shares of U. S. Plywood, Sachs & Co.; Kidder, Peabody &
leaving 8,000 shares; 4,631 shares Co.; Kuhn, Loeb & Co.; Lazard
of Beckman Instruments, leaving Freres & Co.; Merrill Lynch,
32,500 shares; 5,900 shares of Co- Pierce, Fenner & Beane; Phelps,
Fenn & Co.;
and White, Weld
ing 40,000 shares; 2,000 shares of & Co. *
'
' ' '
* *
leaving 25,000 shares in the port¬

Broadway, New York 6, N.Y.

of the earliest

jumped187%. Revenues from sales

of 6, 4%, 3, 3.20 and 3V4% coupons. In New Jersey, Rockland Electric
The series G issue is the seventh Company serves the northern part
of instalment to be issued of $500,- of Bergen County and a small area

total of 20,000 shares

was one

Stale of Ohio Bonds

highways or on with population of about 183,000.
fuels used
for propelling these In addition to Nyack, the larger
held in the portfolio.
Portfolio
eliminations
were:
vehicles. Net revenues from these communities served include Mid8,250 shares of American Can Co.; sources at the 1956-57 level of dletown, Port Jervis, Suffern,
8,000 shares of Briggs & Stratton; $262,985,350 are 5.46 times the peak Spring Valley, Haverstraw, Stony
service
requirement
esti- Point, Orangetown, Clarkstowii
16,000 shares of Outboard Marine; debt
Rockland Electric
10,000 shares of St. Regis Paper; mated for 1960, with the ratio in- and Ramapo.
25,000
shares
of
Consolidated creasing gradually thereafter as Companv serves a population of
Goldfields of South Africa, and estimated debt service declines.
about 56,600 in 22 communities in
Among those associated with the New Jersey. Pike County Light &
5,000 shares of Honolulu Oil.
Portfolio
reductions
included: managers in the offering are:
Power's operations in PennsylThe First Boston Corp.; Harri- vania are small.
9,000 shares of Schering Corp.,

Mines for

Rockland

nessee Rockiand's heating rate at
qq^ per mcf is the cheapest in the

"B," for a total of 30,000 shares; Moody's and A-l plus by Standard northeast corner of Pike County
3,P00 shares of Hudson's Bay Co., & Poor's, the bonds are payable in Pennsylvania,
for a total of 35,000 shares, and as to principal and interest solely
The company serves electricity to
2,224 shares of Tampa Electric for from fees, excise or license taxes 32 communities in New York State
levied by the state on the regis- with an estimated population of
a total of 22,224 shares, and 4,000
shares
of
Falconbridge
Nickel tration, operation or use of vehi- 173,000 and gas to 27 communities

investment dealer

d dress.

,«

1!J56 residential electric while
reveincreased about 162 /0

nues

$31 Million Issue of

Trans-Mountain

TELEVISION-

115

total of

Sprite

70%

1,000
shares
Oil Pipeline, for 000,000 authorized by the electors in the northwestern corner of
a
total of
16,000 shares; 2,000 by amendment of the Constitution Sussex County. Pike County Light
Rated Aa by &
Power Company serves the
shares
of
McMillan
&
Bloedel of Ohio in 1953.

20,000

get the booklet-prospectus and
record of this Mutual Fund

135 S. Lq Salle

3,500

"lg

about

Babcock & Wilcox, for a total of

BEFORE DECIDING

from your

shares;

parable 1956 period.

same

after
adjustment is made for the inter¬
year

merciai USe in .future should be a
f

favorable earnito;|actqf. ^

laSTthe Sde?fe Xision of ?he

are

corporation

neighboring

as-

Cy^amid!

net

up a reserve over

sold

was

rembfvnW tetheTareesftnd^- hasL,bmlt ,UP ltsA?as business much
trial customer contributing ?%^)f f"Fther than ®ther companies in
electocTevenue^and is also *
VUC\;?V
?

Corporation.

135 S. La Salle St., Chicago 3, HI

power

residential politan area to receive natural gas,
S
which it obtained from a Colilmbia Gas subsidiary, (Home GaS) in
Oypsum., Contiriental 193g
^ a resuit
the
new

reported'at$61^2S^5*by^Ir.flare, w^h Should"'exceed*l^mSlion

rospectus from, your dealer or

built

peakload of 41% last year. Excess

utilities in the New York Metro-

equivalent to $23.76 per Vice-President of National SeenAmericanmaker of
share at Sept. 30, 1957 was an¬
rities & Research Corp. This reppharmacuetical supplies, which
nounced jointly by Robert Leh¬
resents an increase of $2,742,430 contributes over
5% of electric
man,
President and Monroe C. or 85% over the similar month
revenues.
Gutman, Chairman of the Execu¬
tive
Committee,
in
the
nine
months report
of The Lehman «•« or $18 613 056 over the pre-

With these important additions the

ll Jt

,gam.in KWH

Can

Assets Now

No. 3 at the Lovett Plant in 1955.

company

fisspf vslup
ttis
asset vaiue,.

700,500 of investments representing 8.5% of net asset value.

January 1956 and the large Unit

utiiities at relatively low kwh
£;?^ Jilrates. Conversion of this extra
?n! fi ft w a2fJj® Sf Str capacity to residential and coih-

g^ metals and mining with $18,- ia

opt
net

vLS"TS

of
01

*5% m the past seven years and

that there had been no sig¬ state Gas Co., and 14,900
in Tri-Continen- of Safeway Stores.

9%
id.» /o

^hich

area

spntinc?
senung

19 Million

the

Inter¬

Selected

Oil and gas continued to be the

17,400 shares of Colorado

Lehman

substantial

has

company

er Market, has had a remarkable of the steam capacity being new
growth record.
In earlier years and efficient.
Last year 24% of
the area which it serves may have output was generated by hydro
been slow to develop, because it plants and 76% from steam. Btu
w.as just beyond the commuting per kwh generated was only about
zone to New York City, but iii the
10,700, one of the lowest figures
postwar decade the territory has in New York State. Kwh produc¬
developed remarkably and recent tion cost was 4.7 mills. Total gengains are expected to continue.
erating capacity, now 172,000 kw,
ing 6,900 shares, and 2,808 shares
has been more than doubled in the
of U. S. Rubber, leaving 18,000 T fhe,
J0?
th? past three years with completion
shares; and 5,000 Dow Chemical,
of the Grahamsville Hydro Unit in
leaving 45,900 shares in the port-

nificant change

The

electric generating capacity, most

shares; 4,200^ shares of Mission
Development,
leaving
23,800
shares; 7,250 shares of Signal Oil
& Gas "A," leaving 48,400 shares;
4,500 shares of Standard Oil of
New Jersey, leaving 33,000 shares;
10,000 shares of Brown Co., leaving 35,000 shares; 8,100 shares of
Texas Eastern Transmission, leav-

He went-on to

Rockland Light & Power Company
Rockland Light & Power, whose
stock is traded in the Over-Count-

000

a r

plained that the nominal third and 23,200 shares of Pacific Gas
quarter reduction in 4he propor¬ and Electric Co.
Principal de¬
tion of common stock holdings creases ;dn holdings were
9,400
resulted entirely from a decline shares of Eastern Air Lines,
Inc.,

Utility Securities
By OWEN ELY

Yri-Continental from its subsidi-

in market values.

Public

man

While industrial operations are
increasing, system electric operations are still heavily residential,
the breakdown being 41% resi-

dential, 24% commercial, 23% industrial and 12% miscellaneous.

thp

io ao^

\°

HiWilnH

+he vield is about

rat«

sharJ earnings^declined to
since timt v^artherlmve
if $105 la^t
^ncrea^ fn estLated Sl 16 for
i

au0?o<«,
auuui

^uitv
q y

Q^7

10'

ratio

With Alfred O'Gara
(Specia]! to T^he Financial

Chronicle)

CHICAGO, 111.—James S. Hin...

...

man 1S now with Alfred UGara

& Co., 134 South La bane street,

JJe was formerly with Stone &
Webster Securities Corp.
With Armstrong, Jones
(Special to The Financial Chronicle)

DETROIT,

Mich.

—

William R.

Opel is now connected with
Armstrong, Jones, Lawson . &
White, Incorporated, Penobscot

Building, members of the Detroit
Stock Exchange,
Joins Vercoe Staff
(Special to The Financial Chronicle)

COLUMBUS,
COLUMBUS,

Ohio —John
Ohio — John

Small has joined the staff of VerGas revenues are about 83% resi- coe & Company, Huntington Bank
dential, i2% 'commercial,, 1% ,ih- Building, members of the New
dustrial ancf 4% miscellaneous.
York Stock Exchange.

The Commercial and Financial Chronicle

Thursday, October 10, 1957

...

(1622)

The following statistical tabulations

Indications of Current

latest week
week

Business Activity
Latest

operations

steel

Indicated

Equivalent to—
Steel ingots and castings (net tons)

ucl-

—

month available.

Ago

oil

condensate

and

output—dally average

100.9

f p;'0-7
—

output

(bbls.) at.
(bbls.) at
oil (bbls.) at-

Kerosene

5eph
Sept. 27
Sept. 27

—

•—

Distillate fuel oil

fuel

Residual

RAILROADS:
freight loaded (number of cars)
Sept. 28
freight received from connections (no. of cars)—Sept. 28

6.820,800

6,839,700

6,766,250

CONSTRUCTION

ENGINEERING

CIVIL

(17,918,000

7,830,000

8,327,000

28,212,000

28,516,000

27,093,000

28,428,000
1,572,000

•2,028,000

1,871,000

construction

Public
State

'12,007,000

13,241,000

Bituminous

and

7,929,000

7,820,000

7,609,000

7,622,000

171,683,000

AVERAGE

174,720,000

sales

177,430,000

174,058,000

36,331,000

*36,190,000

34,114,000

33,817,000

169,265,000

*165,762,000

15,876,000

150,367,000

57,716,000

56,003,000

52,472,000

INDUSTRIAL)

AND

—

DUN

steel

METAL

PRICES

Electrolytic

(E.

745,183

831,648

625,367

685,444

$333,358,000

$342,274,000

$314,122,000

3
3
3

148,442,000

186,388,000

108,206,000

245,050,000

184,916,000

155,886,000

Month

131,380,000
24,500,000

205,916,000
181,860,000
24,056,000

245,958,000

169,513,000

199,356,000

Orders for

Steel

tZinc

46,602,000

10,200,000
532,000

10,065,000
533,000

10,060,000

126

134

MOODY'S
U.

130

Government

11,564,000

11,697,000

11,678,000

261

278

208

i.z

Railroad Group

BANK

1
1
1

5.967c

$66.42

$63.04

$40.83

$43.83

$50.17

$57.33

2
2
2
2 |
2

26.350c

26.550c

24.225c

23.650c

27.850c
24.450c

14.000c

16.000c

13.800c

10.500c

1,251

2,575

7,725

5,364

85,229

122,870

freight

cars

•

—____

and

AMERICAN
t

undelivered

RAILROADS—

installed

DEBITS—BOARD

(BUREAU

112

127

395

739

$190,539,000

$200,547,000

$183,819,000

2,311.400

service

.73

GOVERNORS

...

320

•

MINES)—Month

(net tons)

July:
6,504,915

(net

*6,362,3,35

6,364,026

6,207,022

140,889

"155,313

52.900

2,422,594

—

(net tons)—

coke

2,295,931

2.422,594

tons)—

stock at

coke

Oven

14.000c

end

10.000c

26,000c

26.000c

month

(Millions

(net.tons)

93.500c

93.000c

102.375c

86.94

86.44

87.48

89.51

89.37

89.78

2,258,500

94.56

94.26

94.41

102.80

91.77

92.20

101.31

89.37

89.51

89.92

99.52

82.52

83.40

93.67

87.59

88.13

98.09

COM-

Month

—

July

dollars):

99.20

Oct.

DEPT.

SERIES

NEW

MERCE

25.000c

92.875c

INVENTORIES

BUSINESS

13.500c

10.000c
26.000c

$54,100

$50,000

12,700

24,100

12,300
23,800

$90,900

*$53,900

12,700

Manufacturing
Wholesale

*$90,600

$86,200

—;

Retail

92.01

89.09

89.23

89.92

91.48

91.34

91.48

Total

(BUREAU OF MINES)—

COAL EXPORTS

of July:

Month
U.

100.16

North

Pennsylvania

exports

(net tons)

•

99.20

—ft.—

3.65

3.70

4.45

—Oct.

4.46

4.26

Oct.

4.46

4.43

4.12

4.10

Och

4.11

3.58

4.29

4.26

3.67

4.45

4.42

4.98

4.91

4.59'

4.55

4.48

4.47

4.42

Crude

3.80

Oct.

—

INDEX-

12,874

(net tons)

1,173

2,386

7,601

T—;

930

—

4.31

4.32

4.31

392.8

416.5

August:

(tons of 2,000 pounds)

419.4

Refined

100,827

122,108

107,522

of 2,000 pounds)

84,702

192,931

of 2,000 pounds)-stocks at end of period, (tons

(tons

copper

*92,527

128,480

—

».

■

127,434'

98,290

(tons of 2,000 pounds)

Refined

Deliveries to fabricators—

3.74

391.6

month

Copper production in U. S. A.—

3.87

Oct.

Group

172,686

4.16

4.55

Oct.

Group

183,254

235,751

—

INSTITUTE—For

COPPER

3.78

4.96

216,846

138,539

3.80

Oct.

—.

Railroad Group

359,499

142,770

—

(net

(net tons)(net tons)

Undesignated

466,411

288,910

—.

tons)

Europe

To Asia

3.14

3.58

anthracite

America

Central

and

To South America

COMMODITY

3,203

8,758

INSTITUTE—

August:

new

Production

15.800c

10.500c

14.000c

Oct.

corporate

Industrials

CAR

Oct.
Oct.

—

MOODY'S

1,288,988

tons)—

36.975c

—Oct.

Utilities

RAILWAY
of

(net

•

August (in thousands)

COKE

39.675c

2
2

Government Bonds

Public

7,284,616

THE FEDERAL RESERVE SYSTEM—Month

MOODY'S BOND YIELD DAILY AVERAGES:

Baa

8.122,597

5.622c

$66.42

88.13

Public Utilities Group
Industrials Group

Average

*8,908,732

castings produced

New locomotive units on order (end of month)

253

oct.

Bonds

—

9,218,000

79,258

for

AVERAGES:

Aaa

3,570

INSTITUTE:

products

Month of August:

11,342,000

Oct.
Oct.
Oct.
Oct.
Oct.

Average corporate

steel

Locomotive units

Oct.

PRICES DAILY

steel

freight cars delivered
Backlog of cars on order
(end of month)

130

Oct.
Oct.
—•————.Oct.

3,537

5,877,133

STEEL

July.

Oven coke

46,783

"1,682

„I
ZZ.-Z

Oct.

Louis)

BOND

Beehive

(primary pig. 99%)
(New York) at—

tin

70,011

380,172
117,548

■

663,000

580,000

82.77

(East St.

8,453

282,289

•

Oct.

AND

and

ASSOCIATION

—

501.290

10,042
335,139

r'';

New

10,464,000

92.20

Zinc

Aluminum
Straits

AMERICAN

copper—

(delivered)

ingots

Month of

QUOTATIONS):

Export refinery at—
Lead (New York) at
Lead (St. Louis)
at

341.062

„■

(net tons)—Month of August—!—

Domestic refinery at-—-—.—

416,874

unit

s-i

$491,008,000

Oct.
Oct.

19,000
90,400

July:

factory

washer-dryers

IRON

605),295

Oct.

lb.)—

(per

—

AMERICAN

Pig iron (per gross ton)
-Scrap steel (per gross ton)

4,374,700

111,400

MANUFACTUR-

appliance

Dryers

AGE COMPOSITE PRICES:

Finished

LAUNDRY

•;

Ironers

724,934

—Oct.

INC.

BRADSTREET,
IRON

4,484,100

13.100

47,499,000

739,266

.Sept. 28

(in 000 kwh.)__

(COMMERCIAL

FAILURES

100

5,155,700
5,031,200

10.300

therms)

Washers

INSTITUTE:

ELECTRIC

Electric output

4,868,400

91,200

therms)

laundry
(domestic)

Combination

RESERVE

SALES INDEX—FEDERAL

STORE

SYSTEM—1047-49
EDISON

(tons)

anthracite

Pennsylvania
DEPARTMENT

HOME

605,969

Sept. 28
Sept. 28

lignite (tons)

home

Total

MINES):

(U. S. BUREAU OF

coal

sales

-ERS' ASSOCIATION—Month

12,744,000

15,403,000
COAL OUTPUT

Ago

4,766.900

therms)

gas

sales

Shipments

Oct.
Oct.
Oct.

—

municipal

and

sales

gas

Oct-

construction

Private

sales (M therms)—

AMERICAN

2,484,000

12,288,000

ENGINEERING

—

construction

Year

Month

ASSOCIATION—For month of

7,912,000

NEWS-RECORD:
Total

of that dates

Mixed gas

7,044,100

ASSOCIATION OF AMERICAN
Revenue

GAS

Total gas

2,438,000

2,097,000

*2,115,000

(DDIs, or

(bbls.)
r
*
or.
Residual fuel oil output (bbls.f
■■—
■—ceP1Stocks at refineries, bulk terminals, In transit, in pipe lines—■
Finished and unfinished gasoline (bbls.) at
Se;pt. -7
fuel oil

Distillate

Revenue

AMERICAN

July:
§2,088,000

are as

Month

Agr

Natural

fep;- tl

gallons each)
Crude runs to stills—daily average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.)——
;

of quotations,

cases

either for the

are

Latest

Manufactured

or,

Year

81.9

*82.6

Dates shown in first column

that date,

PETROLEUM INSTITUTE:

AMERICAN
Crude

Oct. 13

Week

£81.6

month ended
Month

Week

INSTITUTE:
(percent of capacity)

IRON AND STEEL

AMERICAN

production and other figures for th«

cover

191,515.

109,618

96,450

NATIONAL PAPERBOARD ASSOCIATION:

Orders received
Production

(tons)
(tons)

Percentage

Unfilled

Sept. 28

(tons)

end

period

259,955

265,643

Sept. 28
Sept. 28
Sept. 28

activity

orders

295,363
300,659

296,404

290,919

249,859

271,570

465,246

418,314

410,178

110.21

110.30

110.28

1949

AVERAGE

109.15

Oct.
FOR

ACCOUNT

STRUCTURAL -STEEL

INSTITUTE

CAN

100

TRANSACTIONS

3,253,885

——

«.

FABRICATED

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

1,611,793

(running bales)

Sept.

444,626

(DEPT. OF COMMERCE)—

COTTON GINNING

STEEL

(AMERI¬

CONSTRUC¬

TION)—Month of August:

MEM¬

'•

•'

202,772
303,512

213,495

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

purchases

Sept. 14

Short sales
Other
Total

210,110

1,021,780

1,321,550

794,790

1,218,930

initiated

1,236,010

All

Sept. 14

the

Other
Total

280,780
25,100

231,420

128,090

207,065

290,450

277,970

152,000

224,565

315,550

235,850

338.090

Sept 14

—Sept!

375,045

71,900

391,459

249,410

388,405

__Sept. 14

475,479

300,970

460,305

1,844,405

1,123,510

1,723,190

396,170

241,040

1,299,510

purchases

1,006,720

1,604,290

1,898,875

Short sales
Other
Total

sales

Isept.

sales

sept. 14

2,074,999

1,247,760

586,645
-•

1,903,800

665,975

sales

Dollar
Odd-lot

by dealers

(customers'

___

purchases by dealers (customers'
sales)
orders—Customers' total sales-

Number of

sales

other

sales

Dollar

value

Round-lot sales
Number

_—

1,258,228

$55,038,913

$36,566,145

$63,515,062

543,445

854,597

6,420

12,274
842,323

$41,053,335

$26,258,784

$43,069,428

$45,892,432

186,440

107,780

192,780

234,960

Sept'.
Se£t

14
186,440

IO7] 780

192~700

234] 96 Q

531,570

309,370

562,090

551,120

RTOPK

INTERSTATE
of

Index

WHOLESALE PRICES,

NEW

SERIES

—

LABOR—(1947-49=100):
Commodity
All

DEPT

Farm

Processed

543,740

322,870

423,260

5,340,790

8,842,050

10,073,690

5,663,660

9,265,310

Employment
(1947-49=100) - J—;

EARNINGS

ROADS

oct

foods.—I

$1.98

2.10

2.20

i-81

1.90

middle

'»

•

—

76.7

■;

76.5

79.0

CLASS

AMERICAN

(AS¬

Oct]

]

RRs.)—Month

$867,914,786

$307,213,371

695,528,628

685,783,378

*53,843.427

79.70

79.02

81.00

$85,352,939

$86,895,657

$S9;978,911

railway operating income before charges

G8,486,700

74,030,563

*1,686,947

(estimated)-—I—

50,000,000

58,000,000

44,000,000

$852,032

$795,096

$851,024

—

Net
.

Net income after charges

FINANCING

ESTATE

REAL

AREAS

July

NON-FARM

S. —HOME

BOARD—Month

LOAN

(OOO's

and loan associations
Insurance companies

BANK

omitted):
—

—

129,578

savings

banks
1

lending institutions

118,516

158,843
464,305

125,546

168,146

324,968

289,587

307.345

311.916

—

362,805

141,959

trust companies—

390,108

336,919

424.466

$2,210,561

and

Total

(OOO's

117.5

117.7

118.3

90.3

93.0

88.9

105.2

foods

and

STATES

BUREAU
,

90.5

farm

$2,028,469

$2,374,129

$1,690,600
1,137,000

$1,781,600

$1,620:000

982,600

1,050,700

10,493,830

utri, OF

other than

2.20

COMMISSION—

COMMERCE

Operating ratio

UNITED

Meats

All commodities

39.6

420,140

8,948,240

products^

$2.07

f.-89

—

Group—

commodities

—

$872,658,361

Mutual

9,491,980
S.

40.8

39.4
$2.07

July:

Bank

1
U.

40.3

40X

39.4.

"——

Individuals

:~r

39.7

40.2

1—
—I——

——

Railway

Miscellaneous

other

71.68

39.9

•«

Savings

TRANSACTIONS

Total sales

—

*4,857

85.68

74.86

912,203

ROUND-LOT STOCK SALES ON TIIE N
EXCHANGE AND ROUND-LOT STOCK
FOR ACCOUNT OF
MEMBERS (SHARES):
Total round-lot sales—

:_-i—.

goods i_—
Nondurable goods

917,060

537,025

"I!—Ill"

TOTAL

—

$70,236,768

852,235

SeDt

•

—:——

Durable

1,214,066

SeDt

sales

781,484

11,539'

Round-lot purchases by dealers—
Number

1,177,189

840,696

sales

Short sales

Other

_Sept

I—3ept.l4

bv, dealers—

$79.79

88.00

.Sept. 14

HI—I

—

she>s—Total

RAILROAD

Customers'

August

.Sept. 14

value

short

$82.16

74.47

:—

—

goods ————:—-—-

SOCIATION

•

Customers'

goods

manufacturing
Durable goods
v
Nondurable goods
Hourly earnings— - ,
All manufacturing

purchases)—t

shares.,

$82.59
,88.44

T——

All

2,217,535

SECURITIES EXCHANGE COMMISSION:

Number

Hours-

79,330

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE —
Odd-lot

DEPT.

318,660

1,678.829

round-lot transactions for account of members—

Total

HOURS—WEEKLY

August:

manufacturing

Nondurable

2,165,285

Sept- 14

—

51,560

Sept, 14

—_—_

84,020

earnings—

Durable

580,405

14
Sept. 14

sales

17,500

floor—

purchases

Short sales

Total

191,700

23,910

Sept. 14
initiated off

137,800

46.550

Sept. 14

sales

230,010

Sept. 14

transactions

LABOR—Month

Weekly

AND

ESTIMATE —U.

AVERAGE

the floor-

EARNINGS

FACTORY

214,230

1,008,820

Total sales

Total

1,304,100

165,570

629,220

Short sales

Other

1,143,400

265,600

1,055,950

—Sept. 14

purchases

Other

749.860

Sept. 14

Other transactions

Total

1,239,350

Sept. 14

sales

(tonnage)—estimated

Shipments

268.273

167,083

333,133

(tonnage)—estimated:

closed

Contracts

105.9

107.3

104.1

91.4

93.2

190.1

125.7

125.9

122.9

AND

IMPORTS

CENSUS —Month

July

omitted):

87.6

125.6

EXPORTS

115.2

Imports

ZINC

OXIDE

—

(BUREAU

ft—

MINES)—Month

of July:
*f

jSVliedi9^7Urf; ™Cic?e- 926i00i0n^1Ie1^

Monthlv

invMtniBn)

Piai

one"haW Sn?a poun?

to9)"'

Western

of foreign crude runs. jBased on new annual capacity of 133,495,150 tons as
®.8 of 128,u63 09j tons. tNumber of orders not reported since introduction of
Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

Production

Shipments

(short

15,926

(short tons)—;

tons)

—

Stocks at end of month (short tons)

—
—

14,593

16,271

14,879

28,674

29,019

14,483
•

16,635
19.983

Number 5680

Volume 186

Continued

...

page

Power; Philadelphia Electrics, and
Niagara Mohawk Power bonds.
Old line institutional investors
became active with one of their

experience and information as to
needs between us.
Perhaps it is

v..w,r

;

not out of

place, too, to point out

again that technical aid and train¬

number

ing is one of the chief contribu¬
tions
the
private
investor can

side

established feasibly could borrow
an- additional $50 million,
The*: fourth

feature

finance

borrowings in recent
been the increased use
of long-term loans expressed as

company
years has

percentage of total borrowings.
G." I.
T. Financial Corporation's

Rates charged by
I6ng-term
concerns have
al¬

5%.

rate to over

finance

some

raising., the

effectively

deposit,

legedly gone from 12 to about

11?

were

sale of

when the services of

1947

the

ness

49%

with

considerations

of total

aid.

strpng

the, subprdinated-l o.a n

addition,

those

nance concerns

which have heavy

.customers- Currently,.

not,onl^^re^ +jg^

money^

The

periods.

•

;

prospering,

These four changes in the

pat-

borrovying even

.Continued from page

concept

very process has
phenomenon and a
foreign aid that has

before been conceived of in

never

And

dwarfs anything

on a tern of borrowing have indicated
subordinated basis.
The - general increased creditor money in cornrule of thumb established by loan-, mericial finance companies com¬
ing agencies for credit to finance panies in relation to equity capi"'companies is to have junior sub- tal^In addition, a growing portion
ordinated long-term debt not to of the debt appears to be of a long'exceed about 37.5% of preferred term nature. Loaning agencies apand common stock plus surplus.,In, parently have
come to consider
turn, total rsubordinated debt can business finance concerns in a more
equal approximately one-half jun-1 favorable light. In turn, finance
ior subordinated long-term debt, companies have found increased
common and preferred stock and
borrowing to be profitable. The
surplus.
For example, an estab- investor might well reappraise this
lished commercial finance concern; industry which ostensibly converts
with common and preferred stock subordinated debt into capital so
plus surplus of $10 million could that additional profitable borrowhave $3.75 million in junior sub- ings may be made. Hidden profits
ordinated long-term debt and total possibly might lie behind consersubordinated debt of about $6,875 vative
borrowing
practices
of
million. This firm^ in turn^ if well management.
of

produced

history.

Summary

however, to the

There is a limit,

extent

slowness, the give and take,
part of the democratic process.
faults, but let us not

It too has its

those firms who in forget that this

; ^

".v"Debt Limitations
*'

are

working

are

at them with some success.

away

new

are,

and

short-comings,

have
of

ever

overall this aid
which the Soviets

done with all the ease

behind-the-scenes

their

deci¬

and absolute controls.

sions

Signs of Progress
Moreover, when all is said and

done, there are signs of real prog¬
ress in the lesser developed coun¬
tries,

and

critic

would

the

even

most

forced

that assistance from the

avid

As a

fact, many of the very

problems which confront Asia
today stem
not from
inherent
weakness, but rather from the

real

speed

and

various

extent

countries

to better their
you

have

managed
Those of

who have participated in the
here have received re¬

meetings

ports of this progress—of the fact
that the Philippines, even in the
face of its serious exchange crisis,

^ :

its living standards;
production in In¬
by 60% since 1950;
that trade for all southeast Asia

has improved

that

and the Developing

lands

underdeveloped to the more difficult task
analysis, development in Asia.
destiny. They can
\ Technical Help Needed

the

people

guide their own
their

maintain

the final

can,

political and
providing they

industrial

dia has grown

Tar East Economies

own

than 45%
in the same period.
The task at
the moment is to see that this mo¬
mentum is not interrupted, and
that a solid, dependable base con¬
tinues to exist for a further for¬

has increased by no less

ward movement.

recognize that one sec¬
tion of this base must consist of
a
stable flow of economic assist¬

capital—help that
newly won freedoms for a forced is proficient not only in technical
speed
of development, a speed skill, bul which is able and will¬
which in the circumstances could ing to adapt itself to new lands,
new
be illusory.
languages, and a new envi¬
x

East

sacrifice

that

fact

The

have

not

both

East and the West we are

—seeking

new

norms,

their

in the
groping

new

ar¬

rangements to accomplish growth.
And if the West tends sometimes
to be

critical of the East, the East

impatient with
us—at
our
inexpertness, at our
slowness and temporizing. We are
still in the early stages of devel¬
oping the public understanding
and
administrative
procedures

too has basis to be

necessary

which

to cope with a problem
from simple.
Even

far

of, the United
agreed on basic
objectives in their relations with
underdeveloped
countries,
the
government faces verv real diffi¬
culties, both political and eco¬
nomic, in implementing them.

though the people
States

may

Americans

preciate
can

The

not

find

hard

ap¬

much that is done
be immediately profitable.
that

Marshall

Plan

Europe

tangible results very
quicklv. Per*1 aos its very success
created an
image in the public
mind that can't really be applied

yielded

Moreover,

All of

ance

from abroad,

opportunities

Situation

Changing

folio

into the

came

substantial

way

both public and

men

bond market.

Bell's of¬

Before Southwestern

found themselves forced

circumstances to turn to the

situation.

clear up the

Seeking Protection

appeared, Double A and
But while this segment of the
Triple A bonds were moving at investment industry appears to be
prices to yield 4.85% to 4.95%. more receptive to corporate debt
The Southwestern's were brought issues the fact remains that those
out on a 4.70% basis and touched who do the
portfolio managing
off demand for issues like Duke are looking for as much protection

fering

conditions afford.

strong attachment to a

marshall support for

continue

the

assistance

foreign

years

Urges Private
the

not

leaders

overlook

probable growth in the flow of
private capital. I know that many
are skeptical of this, and that the
volume to date has been small in
certain areas. But again I would

Fge ^
some

buyers

are

assuring

buyer

the

against

the

"call" of his bonds for periods of

the matter be examined

investors

professional

naturally believe they can antici¬
a period, in such an interval,
when the market might encourage

pate

nossfble

attractive terms.

Looking Ahead

,Except fcr Consumers Power
Co_,g offering of ?35 5 miuion of

perspective.
In recent .
here in the United convertible debentures to share¬

years

and

States,

indeed

Western Europe,

throughout

have been expe¬

holders, which will be underwrit¬
ten by a banking syndicate next

prolonged investment week, the
As Per Jacobson reported

riencing
boom.

signs
that this strong demand is level¬
ing out. I would venture to pre¬
dict that capital from the West

these

strongly
toward
issues
which are fortified with clauses

leaning

These

Capital

time,

same

should

abroad

Accordingly,

five to 10 years.

ahead.

Washington,

may

America has a long
keep alert and plan prudently and way still to go to equip itself
constructively
for their future. properly for this new type of
They do not need to give any assistance. What is needed is tech¬
political hostages to fortune—they nical help, as well as a flow of

economic integrity,

market

which the

position.

buying

spell.

Naturally when one of the Big
Five insurance companies, which

bit

democratic
to admit and representative government
West has which can give it expression, will

already played a vital role.
matter

suddenly

recognize the need to correct such

companies;s.dught^i4t..bv
few years obtained longtypes:^of.•.bdrrowpTp,., bpt;loans at favorable interest
clients need more funds fpr longex.
rat€s

buyers

authorities in the United States do

more short-tprin ^long-term debt with more funds
when needed by ^han needed. jn today's period of

practices ..make
available

iunds

period.

know they produce
recipient nations,
who find it even harder to plan
need ahead than we do. Yet responsible

volatile

forr their services than do

issues, does not as-

emis¬
had been out of the market for
of the
competitive deals for more than
few in¬
four years, appeared as a buyer
stances a little over-rich pricing
recently, it prompted a bit of
by sponsoring syndicates necessi¬
digging in search of a reason.
tated the freeing of such issues to
Looking the situation over it
find their own level.
developed that the major insur¬
But the turnabout which came
ance companies, presumably feel¬
with the offering of Southwestern
ing in some measure the slower
Bell's $100 million issue a week
tempo of building, had come to
ago has cleared the atmosphere
the end of the line, so to speak in
and brought about certain devel¬
the mortgage market.
opments which have been highly
This outlet for funds appeared
cheering to the trade.
to have been exhausted, at least
When that issue first appeared
for the near term, with the result
it was a bit on the "sticky" side.
that life insurance company port¬
But
not
for
long.
Institutional

summer

for

difficulties

labored

had

two

sions that followed the end

and

lems,

market

with the heavy load of new

generally

demand, the c9mrfirnrs^ active in .personal loans,
pany can pay off bank borrowings • This fluctuating
demand on oceasier than buymg, back stocks Inv casj0ri
could leave industrial fi-

not

with economic
All these pose serious prob¬

defense competing

for

anything in

issues are concerned.

unsold

military

the

prospective investors of any

substantial

encumberance so far as

the way of

The

one or

sure

corporate new issue market is
fine fettle and free of

objectives in planning
implementing
assistance—

that make busi-

an(j industrial loans

experjence

the^firm.are

and

for

Experienced observers report the

mixture of

debt

long-term

over

was

ioansy Companies

obtained tlnopgh the
common stock. Jn a period

*unds

in'1956

flexible operation than it

potential recipients; the lack
of adequate coordination with ac¬
tivities of the World Bank; the
the

-25% of total borrowings, and

was

subordinated borrowing

panies of
is

1956.

Congress for annual ap¬

propriations,
thereby restricting
forward planning; public hearings
at which harsh things are some¬
times said about the motives of

debt rose from $108
million in 1947 to $797 million in

13%.

back

than four

standpoint of the seller is being
aided
considerably by the fact
that the forward calendar, except

ca's aid programs: the need to go

Long-Term Debt

appearing on the buying
competitive deal for

the

years.
The over-all situation, from

Certainly it isn't hard to single
out other difficulties with Ameri¬

charged the Heller organization have increased percentage^
wise more than its lending rates,"
according
to the management
Bank rates are quoted some finance
concerns at 4%, but
with
the
current stipulation
that at
least 20% of the loan remain on

the first time in more

bring from abroad.

rales

(1623)

Chronicle

The Commercial and Financial

years,

are

more readily
the underdeveloped
within
the next several

well

available
lands

there

become

providing of course that
and conditions exist

climate

the
to

issue calendar is

new

relatively light until near the end
of

the

month.

The next really large

public of¬

fering is Consolidated Edison Co.
of N. Y.'s $60
gage

bonds

slated to be

million first mort¬

which

bids

are

opened oif Oct. 22.

Thereafter

things

will

run

fol¬
Oct. 29,

along rather slack until the

Can the nations of the absorb it.
I am not dismayed when I sur- lowing week when, on
on this? I believe
they can. In spite of all the other vey the relations between Amen- American Telephone & Telegraph
pressures that bear down on the ca and the developing nations of Co. puts its $250 million of de¬
average American—the huge bur¬ free Asia. Certainly mistakes have bentures up for bids.
den of defense, the high taxes, the been made and will continue to
be made on both sides, and the
ronment. We have been short on quite undertsandable yearning for
DIVIDEND NOTICE
air at times will be heavy with
this—woefully short—and the re¬ a less complicated mode of life—
disappointment. But let us seek
sults show up in the rather lim¬ the more thoughtful citizen is con¬
always to understand each other—
ited success of our efforts at tech¬ scious in his inner self of the need
REGULmR
assist
other
countries.
This to be tolerant and not unmindful
nical assistance. WeJjave here in to
consciousness
it
seems
to
me of the beam in our own eyes.
this
country
very
few people
Goodwill and not recrimination is
trained
and
knowledgeable
in springs from the instincts of our
the key to steady improvement. I
DIVIDEND
the ways, the capabilities and the people. Americans recognize that
have the faith that we shall indeed
reactions of the East. We have no they have a range of interests in
The Board of Directors has
make progress — that the Free
second or third sons who grew up common with the free peoples of
declared this day
that the world has been Wo ld, the East and the West
in the expectation they would live Asia
working together, will discover
COMMON STOCK DIVIDEND NO. 93
and work there.
Yet I am con¬ fore-shortened, and that both mu¬
This is a regular quarterly
tual defense and prosperity rest new ways, new techniques, to co¬
vinced, as I know leaders in Asia
in part on economic growth and operate in the struggle to prevail
dividend of
are
too, that technical assistance
over their common problems. And
(and I would include management well-being in other areas, includ¬
in the process those ideals which
training here) is one of the most ing Asia. But aside from this, a
25* Kn
we
all
share
in common and
valuable forms of aid the under¬ strong instinct to aid others who
runs
through the which will do more to stimulate
developed lands could receive. By are friendly
Payable on November 15,1957
large mass of the American t>eo- progress than anything else—the
way of substantiation, may I re¬
to holders of record at close
ideals of liberty, the dignity of
mind you that our own experi¬ ple, and it is a serious mistake to
of business October 19,1957.
overlook it, to discount it, or to the
individual,
material
wellence has shown that two-thirds of
H. Edwin Olson
the increase in productivity over put it down to sheer self interest.
being, and equality of opportun¬
Evidence of it shows up in our
Vice-President and Secretary
a long span of vears has been the
ity — shall loom more largely
end result of technical improve¬ great philanthropic Foundations,
October 3,1957
which
are
not common in
the among men. No two societies will
ment—only one-third has flowed
World, and which themselves have ever be exactly alike, but they
from a mere expansion of capital.
THE COLUMBIA
We and the underdeveloped lands lent significant help to the under¬ are all compounded of men who
CAS SYSTEM. INC.
developed countries of the Orient.
must work more closelv together
can share the same dreams.
This
instinct, combined with a
in this area — exchanging views,

machinery and

private.

truly count

QUARTERLY

—

The Commercial and Financial Chronicle...

(1624)

Thursday, October 10, 1957

Italian

BUSINESS BUZZ

Affairs

cles

Containing arti¬
"Steps Taken By Italy

for the

lantic

on.

•.

Development of the At-

;

—

Community," "European, j
and
Steel
Community," \

Coal,

"Italian

A -gg gJ
jljL I l/Vt/

Behind • the • Scene Interpretations
from the Nation'e

Capital

*/ g~g g j

and

sistance

Activities,"

International

As-

and "The
Italian Af¬

Textile Industry" —
fairs, 56 Via Veneto, Rome, Italy,
15 cents per copy; $1 per .year-

A, " IAj

Life- Insurance Sales Management

WASHINGTON. D.

;

the

battle

second

—

tax

reduction,

would

take

White

billion.

amount

House

effect

will

The

marked

disappoint¬

national

the

duce taxes when the

that

debt remains

staggering

high.

■;

spending during the current fis¬
cal

The

will amount to about
S72
billion
despite
the
cuts
made by Congress after months
of wrangling and long pro and
con
debate. A series of things
year

Eisenhower
from

the higher spending, despite the

lias

making,

the

about

authority he

the

States

billions of dollars

many

Congressional cutbacks.

reviewing the budget out¬
look recently, Budget Director
Brundage acknowledged that he
did not forsee anything at this
time to justify a tax cut before

interest

have

was

going to be reduced by $2

would

have

one

single

department

ment

wants

that

course,

know

to still

higher prices."

funds

economy

lion

ernment

the

remainder

comes

from

prior

The

Congressional authority. The
President, who spent most of
as a professional soldier,

^aid

thought

the Defense

remain
cause

saw

$38

ties

way

be¬

below

are

what

give a personal income tax
cut, particularly to those in the
ets.

Democrats

control

both

rSenafe ffor f

brack¬

will continue in
the

House

the| 1958

and

session.

-Speculation among* some Demo¬

military is going
$38 billion this fiscal
points up to the fact that

spend

year

Congress

does

not

have

the

gov¬
ex¬

can

com¬

[This column is intended to re¬
flect the "behind the scene" inter¬

plete control over spending. The
military is subject to politics.

question

again

raising

The officials keep their ears to
the ground. The Army, Navy

the "Chronicle's"

York

the

have

Senate office

offices

Practically

the

the House Armed Services

mittee, if not all, have

important

one

Navy. When

mem¬

of Congress needs to get back to

his district to make

speech or

just return home to visit with the
people,
ride

back

wants to
The

usually
home

not

day he

times

Congressional
sion gets under way.
a

members

Congress

Plate

Special." It is a.
(Military Air Transport
Service) plane that flies non¬
stop. It takes off from Washing¬

MATS

ton, only

airport

Y.,

10-minute
from

Extension, Brooklyn
cents.

the

drive

730

Legislation
of

the

all-time

.«

tion's

economists

the

85th

Bankers

the

Association,

Fifteenth

Street,
Washington 5, D. C.

Capital declare that if in¬

flation

continues,

reduction

Older

Bureau

Ninth

Men

and

Department
of

Labor

Avenue,

Y., 20 cents.

Estimates

spending is all the more
important. On the other hand

W.,

Women

New

341

York

Trait

Industry and Government in
Nef

Capitol.

—

and

England

would

even

Research,

Maryland,
(paper).

—

Uni¬

College

now

Mo.

—

with

Charles L.

Reinholdt

SACRAMENTO,
Jamieson

Calif. —H.

branch office at 2123 J Street
the

der

Company has opened
management

necessary

un¬

Jess

•

Mitchum, Jones Branch

John U.

SAN

BERNARDINO, Calif.—
Jones & Temple ton has

Mitch um,

opened

branch

office

381

Eighth Street under the manage¬
ment

of Rex Burback.

Cornell

124 Roberts

University Press,
Place, Ithaca, N. Y.

(paper), $1.45.

TRADING MARKETS
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■.

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NEW YORK 5. N. Y.

LERNER & CO.

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Investment

Securities

10 Post Office Square, Boston 9, Mm
'

good of the country.

Re¬

Department of Labor, 341 Ninth
Avenue, New York 1, N. Y.,
$2.25.
France

Business

Wolfe.

Worker

Output

and

New Jamieson Branch

—

Labor,

Statistics,

New

cents.

Gardner, 17 North Meramac Ave.

A. S.

they insist that should a .reces¬
sion set in, a
tax
reduction
for the

Commit-

Street,

Bureau

Economic

Krcutz

quirements for 4,000 Jobs—U. S.

However, most members of

Federal

Affairs

(Special to The Financial Chronicle)

Employment and Economic Status
of

—

Carnegie

International

38th

CLAYTON,

high,

for

With Reinholdt, Gardner

Congress—

Na¬

(on*

Y.,

Rico, Sail Juan,

for

East

versity of
Park, Md.,

First

par¬

Facts, 1957
Development

Consumption

and

the National debt
an

De¬

Banking

fly straight to Europe every
Thursday on what they call the

the

Avenue

ses¬

can

"Blue

Island

American

several

Bibliography —
University Busi¬

Council,
Long
Island University, 385 Flatbush

that particular day,

occurs

Patterns

—

Research

ness

usually finds
be going in that

nothing more than a
training flight. This is;
infrequent thing. It

week after

Also

Long

Session

usually

U.
Automation

Force

it convenient to

the

find

York 16, N. Y., (paper), 25

return.

Air

direction

can

prepared

Peace—Public

.tee,

dis¬

member

R., (paper).

Endowment

depart¬

Congress than either the

York

Government

study

trict. The Air Force is in better

Army

Growth

—

U. N. Peace Force?—Summary

com¬

their

States

Bank for Puetro

at least

defense

installation

ment

—

House

members

for

Annotated Bib¬

Puerto Rico: Financial

reduction

Information

request).

buildings.

all

20,

of Labor, Bureau of
Statistics, 341 Ninth Ave¬

New

nue,

keep some of
their top public relations men
on
Capitol Hill all the time.
They are called liaison officers,
and

York

Productivity

United

Labor

views.$

own

New

partment

and may or may not coincide with

Air- Force

and

Marketing

1, N. Y., 15 cents.

con¬

is—if

Building,
(paper).

Postwar

pretation from the nation's Capital

and

for

liography—U. S. Department of
.Labor, 341 Ninth Avenue, New

would

Some

Most Democrats are anxious
middle-income

shooting war?

and

simple

Background

Counselors: An

happeu
if
the
United States got involved in a

to reduce

lowr

in¬

until there is

pertinent

remains' at

that figure.

Personal Tax Cuts Favored

taxpayers

in taxes, and

However,

peacetime there is

budget for
billion

for

servative members of both

Department would

about

the

means

luxury

—

Decisions—Study—Life, Time &

Congress
frown
on
the
Air
Force making the
flights for
special trips for Congressmen.

pect no relief.

his life

$1.4

by the various
agencies
and

mathematics that

appropriated by Con¬

De¬
billion

demands

departments,

the last session, and the

loss, in

about

rigorous

was

Treasury

bureaus.

gress at

the

will spend about
$38 billion during the current
fiscal year. Of this sum S34 bil¬

Federal Government

creased

The military

provide an
$100 in exemption it

continued

bigger budget contributes

Supreme

Because the

routine

Continued expansion of

year.

the

•

amount

partment

money.

1957, and
the com¬

Congress

revenue

They quote rising prices, higher

prices, and, of

•

would

every

before

ve¬

comple-

American

Occupational
Politics Reigns

pending tax
3,000 tax
kinds

smaller

Robert A. Hageman, 2915 Consaul Road, Sche¬

N. Y.,

than

introduced

pending

increase of

govern¬

Congress

Should

hardest

problems solved, because

the

mittee.

replied
that

tax rate

any

reduction bills of various

are

on
soon

some

were

tell

conditions

January the
House Ways and Means Com¬
mittee will begin consideration

ference recently how the budget

could

bearing

reconvenes

asked at his crowded press con¬

time

some

economic

measures.

Eisenhower

Whereupon,

and

the

alternate

Life

bers of

be held to $70 billion.

rates

reductions. As

Ex¬

Post

nectady 4, N. Y., $2.00.

year

debt,

ment

New

HORN OF PLENTY

position to do favors for

General

July 1. At the same time he
expressed
the hope
that
the
next budget for fiscal 1959 can

billion.

national

during the next six months will

that

billion

the

Policy

the start of the next fiscal year

was

the

administra¬

Economic Conditions to Dictate

President

the

from

Deal,

Deal

during the next calendar year
may jump to $8 billion annually.

expend despite

can

$7.9

service

the

because
United

different

New

Fair

tions. Because of the higher in¬
terest rates
it is now costing

budget reductions Congress has
President

administration,

Truman

Senator Byrd points out that

been

Roosevelt

responsible for this.

are

the

spending standpoint, is

little

that

show

recofds

Mich., $15.00

use

limousine)

Fed¬

oppose any

until

cut

state

whose

pay-as-you-go

is not economically sound to re¬

the

over

estimates

Administration's

creased

Byrd

debt is reduced. He maintains it

Hill

Capitol

tax

eral

Funds

Virginian,

operates

Hills,

Beverly

Analysis of Personal Trans¬

hicles

of
Virginia, who remains the
"watch dog" over the Treasury,
has
already declared that he
will make a determined fight
against another $70 billion pius
budget. He also will be against
raising the statutory debt ceil¬
ing of $275,billion again.

less than the

insur¬

particular

port (a proposal, including cost
"analyses and tables, for the in¬

Harry

basis, will also

New

taxpayers.

Senator

with

Director

Detroit 26,

keep

Byrd to Press for Economy

$72

growth

life

changes and Ships' Stores—Gale
Research Co., 1116 Book Tower,

the

permanent in¬

dynamic

Way,
Calif., $2.00.

National

for

during

of them

come

billion.

There

incomes

people
however,

decade,
most

Despite more spending by the
government, and
less income
expected
in fiscal 1958 than
original estimates, there is ex¬
pected to be a surplus of $1.8

ment

Gold

Are

Paradise—-

America's

Brighton

the

reduced

Higher

millions

estimates several months ago.

Uncontrolled

have

has in

inflation

the

sharply

amounts.

be 8300 million

which

ing

industry

ance

been in effect for 10 years, dur¬

The

ment, in

exemptions

tax

Inc.,

attention to 60 key stocks—Par¬
adise Securities Company, 9477

present individual

1958. The

income

Treasury Departrevised estimate, de¬
clares that the surplus is going

record

make seems unlikely
to become effective before July

and
when
it
will depend
the
Federal

McGill —
Home-

Stocks

Victor

—

Discussion

Any reductions in taxes Con¬

budget. Nevertheless, the Amer-.
ican people may as well expect
huge budgets from now on from
the big central government in
Washington. This apparently is
the philosophy of those in control of the government. Spending during the current fiscal
year
is now expected by the

Insurance

Chips

gress may

anticipated

Dan
Irwin

wood, 111.—cloth—$5.
Life

individual
exemptions from $600 to $700.
*
raising

recommend

Richard

and Means Committee is
that the Committee is likely to

effect,

size

the

—Edited

House

the

Ways

budget,

perhaps as spirited as the one
in 1957, is shaping up for 1958,
national election year. On the
outcome
will depend
the size
of the projected tax cut.
The amount of the

members

cratic

■v.vfo

T elephone

HUbWd 2-1990

Teletype
j

Full text of Commercial and Financial Chronicle : October 10, 1957, Vol. 186, No. 5680

FRASER