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Y
i
U in! I v
MlwiH.GAN
OF
ESTABLISHED 1S39
]355
OCT 19
nAUUN
BUSINESS
The Commercial
an
Chronicle
Financial
Reg. U. B. Pat. Office
New York
Number 5472
182
Volume
EDITORIAL
Let's Cmb Role of FHA and The
"Colonialism" has
jure with. It is
a
now
a
word to con¬
hope to stir
difficulty for the older
up a
of the so-called
under-developed countries hope to
make progress
in establishing their lands as fully
cf
business
home
bankers should
further expansion of FHA and
oppose
VA
A
that the Nation's great
achievement
to have
appears
reached in that "colonialism"
now
been
connotes to
United Nations
the
the
something
an
excellent
Those of
and
ment
phase of a move¬
thought that has been im
all this is but
trend i of
a
one
mortgage lend¬
busily occupied with the immedi¬
incident
problems
becomes'
more
to
than
to- de-<
'
fer
being for a long while past, and which has been
greatly accelerated by World War II and its after¬
math. It is a trend which is not likely to subside
some
which
questions
broader
the
already
wrought great changes in the relations among the
peoples of the earth and is destined to bring
of
consideration
-
*
soothsayer,
a
such
of
con¬
ernment
anties
represented
"An
address
by
capacity
rebounded
freight yards
of the State of New
the
economic
By the spring of
creased.
30
on page
Continued
of the
♦An
York, Washington,
"Securities in Registration"
this year, widespread advances
the
by Dr. Bums
of New York, New
address
State
Municipal
HAnover 2-3700
Recommendations
CORN EXCHANGE
ST., N.Y.
before the Chamber of Commerce
York City, Oct. 6, 1955.
Available
State, Municipal
J. R. WlLLISTON & CO.
MEMBERS
OTHER
NEW YORK
1889
Beach
—
Rye,
N.
N.Y.
1832
Members
BANK
New York
120
Teletype: NY 1-708
Bond Dept.
Active
Dealers,
Stock Exchange
American
Stock Exchange
Markets
Banks
Brokers
CANADIAN
SECURITIES
Common Stocks
BROAD
NEW
STREET
YORK 4, N. Y.
Dallas
BRIDGEPORT
•
PERTH AMBOY
CANADIAN
BANK
Canadian
CANADIAN
DIRECT WIRES TO
it
Analysis
PoNcoox Securities
TORONTO
goodbody &
NEW
115 BROADWAY
NEW YORK
YORK
STOCK
1 NORTH LA
CO.
EXCHANGE
SALLE ST.
CHICAGO
(orporatioti
40 Exchange
request
Place, New York 3, N.Y.
IRA HAUPT & CO.
Members New
and
1-702-3
WHItehall 4-8161
111
Boston
York Stock Exchange
Exchangee
other Principal
Broadway, N. Y.
WOrth 4-6000
Teletype NY
upon
•
■
DEPARTMENT
MONTREAL AND
General Gas
BONDS & STOCKS
Executed On AH
Exchanges At Regular Rates
MEMBERS
£ad/uoeAt company
Chase Manhattan
YORK 5
from coast to coast
34 officss
Orders
Industrial Bonds,
25
Exchange
BROADWAY, NEW
Maintained
and
Teletype NY 1-2270
Preferred and
HARRIS, UPHAM & C°
Members New York Stock
OF NEW YORK
Commission
Sout/wedt
DEPARTMENT
Y.
T.L.Watson &Co.
ESTABLISHED
BOND
REQUEST
THE
STOCK EXCHANOC
115 Broadway, New York 6,
Bonds and Notes
REVIEW"
THE FIRST NATIONAL CITY
STOCK ANO COMMODITY EXCHANGES
Miami
BOOKLET
ARE NOW AVAILABLE
ON
CSTABLlftHED
Public Housing Agency
"ATOMIC ENERGY
Request
on
Net
first
of
COPIES OF OUR
BONDS
To
rirst
m
MUNICIPAL
NEW
Convertible Preferreds
ANO
department
AND
Convertible Bonds
BANK
30 BROAD
20
cor¬
SEC
Section, starting on page 39.
on
STATE
CHEMICAL
bond
on page
and
Securities
telephone:
importers and ex¬
Factories, mines, power plants, and
stepped up- their activities. The scope of
expansion widened as its magnitude in¬
m
U. S. Government,
State and
Dr. Arthur F. Burns
establishments, and by both
REGISTRATION — Underwriters, dealers and investors in
afforded a complete picture of issues now registered with the
potential undertakings in our
;
porters increased.
62nd Annual Meeting
Mr. Meredith at the
Savings Banks Association
D. C., Oct. 4, 1955.
porate securities are
and
would a
as
scale.
The business
retail merchants, by
by
SECURITIES NOW IN
/ DEALERS
proceed
again demonstrated its
service
Douglas Meredith
Continued
26
page
L.
in 1934 by pas¬
National Housing Act "To encourage
in housing standards and conditions, to
of
the
improvements
sage
-
student of business
a
can
handled
exceedingly
an
I
expanding
an
when it was created
forms of dominance,
on
guar¬
Housing Administra¬
novel undertaking
intellec¬
economic, political and other. One country,
Congress to
sharply toward the close.of 1954.
Construction work moved ahead on
about and acquaint our¬
Federal
The
tion
Many Forms of Imperialism
Continued
own
1953, economic activity
of
selves with their present scope.
—
tual,
came
and
insurance
of our learned
growth. After a minor
setback, which began in the summer
review how gov¬
we
loan
distant.
for vigorous
lending?"
perative that
precisely defined—is only one form of the domi¬
nance of one people by another,
or of the sub¬
ordination of one people to another.
many
has
con¬
attempting to answer this
double-barreled question, it is im¬
by as many as may be. First of all, let
clearly realized that what is known as
colonialism
although the term has never been
very
During the past year our economy
Before
be
are
expand
to
be
ever
issue of one
law-abiding Roman.
seek
>
not aware of any;
our
cycles,
ventional
accordingly, of first-rate importance
realistic understanding of what is going on
There
viewpoint of
that your organization
propose special treatment of
question: "Should we encourage
government mortgage insurance and
be attained
it
by
law
am
should
others. It is,
a
Therefore, it is especially
guaranty, .or
1
high plateau, neither the
on a
of recession
recent
a
appropriate
disappear in the early future. It has
that
us;
poised
nor
>
quiet the human mind. Nevertheless,
since my aim today is to discuss the
current economic situation from the
;
the
or
front
!
1
for measuring
warns,
mathematician, or a
a
I
forecaster."
responsibilities that it
our
easy
;f
journal recounts that the Roman Emperor, Constantius,
thought so poorly of men's eagerness to unravel the
future, that he made a law forbidding "anyone to consult
engaged in the business of
us
ing find ourselves so
in
article
An
into the mort¬
and, then,
we are now
threat of inflation
business.
gage
ate
Of course,
credit-worthy borrowers.
antidote to further entry of government
airing of their views and their grievances.
though
Concludes,
sound, ap¬
problems of mortgage lending is the best
proach to
instrument for
be shown
lending institutions can provide
alert, progressive, thoughtful, and yet
an
evil which. has
come
unjust past and which must
be cast aside without delay. Meanwhile the anticolonialists, whatever their motives, have found
many people
down from an
great
lending activities and government must
home financing to
a
Says mortgage
lending.
mortgage
independent and important entities in the world.
semantic
developments in the
executive reviews
Insurance
Life
/
| ;f|
though these indexes
reveal a high state of the current economy, we must not
be complacent.
Stresses importance of prevention of
inflationary developments, notwithstanding how unpopu¬
lar government measures toward this end may be, and
says excesses are being checked.
Lists a number of
factors as basis of economic strength, and points ont,
economic activity,
Montpelier, Vermont
great deal
and the leaders
powers,
BURNS*
the indexes
describes
first
Burns
Dr.
Life Insurance Co.
Copy
of Economic Advisers
Council
The
Chairman,
MEREDITH*.
By L. DOUGLAS
Executive Vice-President, National
term with which the trouble¬
makers of the world
of
become
VA in the Mortgage Industry
a
Challenge of Prosperity
By ARTHUR F.
We See It
As
-
Cents
Price 40
7, N. Y, Thursday, October 13, 1955
6
Teletype NY 1-2708
Telephone:
Enterprise 1820
I
2
The Commercial and Financial Chronicle
(1514)
American
The
Dealers Only
For Banks, Brokers,
Express
participate and give their
Corp.*
Hyccn Mfg.
II.
If
Pyramid Oil & Gas
Southeastern Public Service
Tennessee Gas Transmission
realistic appraisal
a
curity
should
tirely
also
the
lowing
1920
Member
n
to
considera¬
5
Principal Cities
i t
Since 1917.
ffipONNELL & CO.
Members
American
ISO
Stock Exchange
Stock
Exchange
periods
of
be
rising prices and
ta^es, oil company equities
particularly attractive because
important asset is its
with
overlooked that
Alabama-Tennessee Natural
Gas
Company
Blumenthal
form of
justly merits
Company
a
Bradshaw represents a singularly
interesting oil situation Let's take
a
at the facts.'
look
Founded in 1936, Warren-Brad¬
charge
the
off
fact
originally an independ¬
drilling contractor that ob¬
drilling for
was
exploration
all
Since
penses.
ex¬
the policy of using almost
pursues
capital
gains
situation and that its earnings as
such are important
only in that
they help provide funds for ac¬
quisition of leases and for explo¬
ration and development. Net earn¬
flow"
most
for the
Although the character of its busi¬
oil reserves.
is
ness
shaw
changing,
continues
nies
contract
in
common
the
one
drilling
compa¬
and
States
ability is second to
as
In
none.
Warren-Bradshaw
engage
in exploration and devel¬
opment activities
With
count.
its
for its
own
contract
operations
LD 33
a
vast
cludes
extending
13-state
Texas,
ac¬
drilling
*
Tele. LY 62
of
its reputation for integrity
years
throughout
which
area,
Oklahoma,
in¬
New
Mexico, Colorado and Kansas, the
company is in a unique position
to
be
intimately familiar with the
geological and geophysical char¬
Trading Markets
acteristics of
most
Botany Mills
result of its
Foundation Corp.
oil
own
of the nation's
acreage.
As
development
tivities have met with
success.
Magna Theatres
some
prolific
United Artists
ac¬
Substantially, all of War-
ings still come from its contract
drilling business, but the real ap¬
peal to the stockholder in this
in the company's
ploration activities.
BTeeuemviGompaTvu
ESTABLISHED
1929
Tel. HAnover 2-4350
As anyone
ex¬
familiar with the in¬
dustry knows, proven oil reserves
are "money in the bank" and are
the
foundations
but
significant is the "cash
of
which
is
available
The "cash flow"
substantial
very
progress realized over the last few
years
the
stock
common
is
still
available in the Over-the-Counter
Market at
price
at
offered—at
it
6V2.
to note that this
It
company's
oil reserves alone have
$5,977,000
tive
(based
valuation
which
is
on
proven
barrel)
per
to
roughly
of common stock
outstanding, and
it is reasonable to
that the
assume
rapid rate at which these
being
ircreased,
reserves
u'timately be reflected in the market
price on Warren-Bradshaw stock.
which
upon
V.
R.
The
perfect investment
com¬
bines a handsome yield with
safety
of principal and profitable
longterm gain.
But one usually ru'es
out
the
one
both
future
or
of
the
SECURITIES
return of the
its
value,
These
this
the-eventual
are
FIRM
units in the amount of
TRADING MARKETS
Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines
Marinduque Iron Mines
1,625,000
Established
1919
reserves
I
Exchange Place, Jersey City 2, N. J.
Tel. BEnderson 5-9400
Teletype J CY 783
New York City Telephone
BArclay
7-0045
barrels.
By
the
means
has
and
since
been
reserves
370%.
the
This
has
rties,
the
inves¬
with
phase
by
in¬
an
tor is unfamil¬
iar
K.
V.
R. Townsend
of Japanese potential.
of
Call
at 600 each.
so
oil situations, there
many
"free
no
of
Yamaichi
Established
their
shares.
common
Brokers A Investment Bankers
111
Broadway,N.Y.6 COrtlandt 7-5680
were
Everyone, in¬
cluding the founders, underwrit¬
ers and management paid the 600
for
options
A
only
at
that
$7
And
granted
Grinnell
This
of
one
the
0 i 1
business,
namely, the
investment
been an
amazing accomplishment, opportunities in proven producing
particularly when one considers! properties. Eighty-eight dollars in
that the company's
drilling pro¬ a unit of Producing Properties,
gram has hardly had a chance to
Inc. with
virtually no risk as to
Corp.
tne
Kalamazoo Vegetable
Parchment
exerciseable
are
share.
a
Continuing Interest in
Continental Telephone Co.
President, Vice-President and the
engineering consultant firm that
has been retained
1897
Home Office Tokyo—70 Branches
And unlike
riders."
additional
write
or
Securities Co., Ltd.
a
common
Keyes Fibre Co.
means
the market value of any in¬
vestment made now by the public
will have to be virtually doub'ed
before
the
it
will
be
their options,
protection
than is
Telephones:
NY-CO 7-1202
the
for
1914
exercise
greater degree of
a
Phila.-LO 8-0900
stockholders
debenture
and
arrangement
-
BOENNING & CO.
for
Established
to
ATT Teletype
PH 30
ordinarily provided.
This
entire
preferred
enables
original
John B. Stetson Pfd.
t'~e
to repay the investor his
company
free.
worthwhile
holders
option
investment
Public Service Coordinated
tax
4s, 1990
And the
company's avowed
is to retire both the de¬
purpose
and
preferred
issue
Pocono Hotels Units
Huntington Hall Apts.
as
*
possible. Based on similar
present producing property pay¬
Cambridge BIdg. 4s, 1963
outs financed by reserved oil pay¬
Pratt Read Co. Common
as
ments, both the note and the
should
be
pre¬
redeemed
in
eight to nine years, and it might
conceivably be brought about a lot
earlier
on
by
of
means
bank loan
a
the substantial equity the com¬
will have in its oil proper¬
ties after just a few years.
Samuel K. Phillips 1 Co.
Members
Phila-Balt.
Stock
Exchange
Pennsylvania BIdg., Philadelphia
N. Y. Phone
Teletype
COrtlandt 7-6814
PH 375
pany
will
It
in
proven
purchase interests only
producing oil and gas
properties,
about
that
basis
the
safe
as
be
can
These purchases
bined
of
are
by
any
as
made
to¬
made
conservative
appraisals
011
LAMBORN & CO., Inc.
99
WALL
STREET
NEW YORK 5, N. Y.
com¬
competent
SUGAR
management.
With
served
this
oil
$10,000,000
payment
and
loans,
actually purchase oil and
at
serves
a
a
revenue
subject
only
payment
future
or
net
gas
and
The
to
of
the
income
gas
now
so
—
Liquid
Exports—Imports—Futures
DIgby 4-2727
$180,000,000,
reserved
of
shares
oil
million
$40
1.6
after
mil¬
all
oil
retirement
of
deben¬
preferred.
purchase
and
Refined
re¬
payments, interest, operating costs,
lifting
costs,
corporate
income
taxes
—
loan of approximately
This in turn means a
common
tures and
Raw
total future min¬
available to the
more
re¬
it will
present cost of around
$70,000,000 and
imum
simply
average
5,977,000
1952
p e
because
that since the
actually increased its
crease
r 0
Inc.
first of the year the company has
one-third
Security Dealers Ass'n
At
reserves
amounted " to
Members
New York
6V2.
of
oil
close of 1954 the company had re¬
serves
of
4,486,000 barrels.
On
June 30 of this year its estimated
barrels. This
M. S. WIEN & CO.
price
>
free
debenture, one $25
preferred and 10 shares
6%
lion
proven
ago at
time its
first
>
investors with knowledge
$75share of
P
a
that
totaled
was
to investors with vision—
$10,000,000.
Each $106 unit consisted of
or
stock
public about three
tax
Organized only nine months ago,
Producing Properties, Inc. issued
Producing
the
return
original investment
$60,000,000.
common
to
years
investments.
most
have unusual appeal
may
~
*.
and the saving it affords as to gift
and inheritance taxes.
opportunity
presents itself,
however, in
offered
tax features add to
over
Bradshaw
For Financial Institutions
original $88 invested.
Two unique
other two.
Just such
offices
JAPANESE
prosperity of any produc¬
ing oil company is based. Warren-
.
branch
our
the longer term, since a minimum
engineering firms, local banks and
the company's own experienced
Producing Proparties, Inc.
to
of $25 cash or equivalent will t:en
be behind each. share even after
day.
President, Dixie Raydiant Electric
Ileat Corp., Atlanta, Ga.
Mobile, Ala.
Direct wires
could be worth $300 or mere over
will
TOWNSEND
NY 1-1557
New Orleans, La. • Birmingham, Ala.
free shares of stock.
investment
KILIAEN
in¬
ly undervalued, for it should com¬
$200 in a .few years and
ferred
$1
equivalent
6%
a
mand
conserva¬
a
of
$6.30 for each of the 950,000 shares
are
and 10
come
soon
value of
a
■
Members New York Stock Exchange
The combined package is decided¬
same
originally
is significant
was
'
Members American Stock Exchange
HAnover 2-0700
principal will purchase
bentures
approximately the
which
•
19 Rector St., New York 6, N. Y.
I* stock
the
»
Steiner, Rouse & Co.
Corp., Atlanta, Ga. (Page 2).
share last year amounted
Despite
t
Ki-
—
liaen V. R. Townsend, President,
Dixie
Radiant
Electric
Heat
per
outstanding
company is
37 Wall St., N. Y.
a
ren-Bradshaw's reported net earn¬
Shawano Development
share,
to $1.30.
be
United
the
amounted
year
per
develooment of additional
Warren-Brad¬
to
2).
Producing Properties, Inc.
5%
Warren-Bradshaw
more
recent
Lynchburg, Va.
that
can
ings per share last
to only 32
cents
has started to acquire acreage and
Scott, Horner
Mason, Inc.
pro¬
it
much
and
Dan River Mills
oil
an
in all of its net
income from drilling
exchange for really important
plus a sizable portion of its non¬
capital gain prospects. Over the cash
charges (depletion and de¬
years many low priced oil stocks
preciation) to finance exploration,
have paid off handsomely. There
it obtains important tax relief. It
are, of course, many such issues should
be emphasized that War¬
of questionable value, but Warrenren-Bradshaw is a
forego current dividend income
such,
Company
as
271/2% depletion allow¬
and
ance
tive accounts which are willing to
largest
Commonwealth Natural Gas
the
hedge
the company is acrordpd
preferential tax treatment in the
for many years have been some of
the nation's major oil companies.
Company
provides
excellent
others and its principal customers
Furniture
War¬
reserves.
stock
an
rap¬
ducer,
Warren-
ent
American
-f
against inflation and it should not
the
shaw
Trading Markets
Handle,
Texas, Gage
OUaho^a
and
Lea
tained its income from
.
Pan
County,
t
investor
stock
BROADWAY, NEW YORK 5
TEL. REctor 2-781S
Texas
ren-Bradshaw
the consideration of those specula¬
Rights & Scrip
producing areas—prin¬
idly increasing oil
and
ploration
company's
the
its most
■
Bought—Sold—Quoted
turned out to be pro¬
The
high
are
enhancement
of
u n
Swift,
Chicago, 111. (Page
Henke & Co.,
develop¬
ment activities have been taking
place in some -of the country's
In
Bradshaw Ex¬
Specialists in
Louisiana Securities
drilled
were
County, New Mexico.
future
common
11
ducers.
C 0
defi-
growth
wells
more
Cochran
promise
e
of
15
cipally
abil¬
—then
New York
Alabama &
Selections
Warren-Eradshaw Exploration Co.
—H. Blumenthal, Partner,
nor
it got 44 producers out of 51.
During the first six months of this
richest oil
the
—
the
and
Exchange
Teletype NY 1-40
Wires
but
into
take
ity
of
man¬
agement—the
company's
rate of growth
120 Broadway, New York
Private
en¬
fol¬
superior
Corporation
WOrtb 4-2300
se¬
a
based
be
be,
to
year
of which
of
im poxtant,
request
New York Hanseatic
Stock
Thursday, October 13, 1955
Week's
particular security.
a
intended
not
are
year
highly
factors
American
for favoring
really get underway. In 1953 War¬
ren-Bradshaw drilled 28 wells, of
which 20 were producers and last
statistics,
not
current
on
should
tion
United Artists
Associate
BLUMENTIIAL
Warren-Bradshaw Exploration Co.
Steel
Established.
.
Participants and
Their
offer to sell the securities discussed.)
Members Midwest Stock Exchange
Metal & Thermit
:
as an
Partner, Swift, Heuke & Co.,
Chicago, III.
Long-Bell Lumber of Mo.
on
regarded,
they to be
are
Investors Div. Services "A"
Prospectus
reasons
(The articles contained in this forum
Home Insurance
*
.
country
Dan River Mills
Portsmouth
This
Forum
A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the
Chesapeake Industries
Great Western
Security I Like Best
.
N. Q.B.
14-Year
of producing
oil
wells by oil payments is
commonplace and risk free
1
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
Performance
of
35 Industrial Stocks
POLDER ON REQUEST
that it is
customarily done through
banks or insurance companies. In
fact, the equity holder is not even
responsible for the satisfaction of
Continued
National Quotation Bureau
Incorporated
46 Front Street
on
page
8
.
New York 4,
N. Y.
Volume 182
Number
5472
.
.
The Commercial and Financial Chronicle
.
3
(1515)
Throwing
SEC explanation that
l
campaigns and hence
modifications,
Commission
not
Articles and Newt
participants in
subject to its proposed
devious.
is
not
newspapers are not
are
INDEX
Curve
a
Constitutional
proxy
rule
involved.
i
proxy
rights
Our Economic Pattern and Its Influence
—Warren Lee Pierson
dealing with the current attempt of the Securities
Exchange Commission to extend its censorship of
proxy material, we closed
a
'. Unwanted Censor" with the
-
"For ourselves, we
-
,
The NASD: What It Is and
£ BOUGHT SOLD QUOTED
We
5
;
Does—George E. Rieber
buy junk from
believe that the public interest
The
and the interest of investors will be served best
by legis; latively removing from the SEC all
regulatory control of
proxies." We meant, of course, of proxy contests, which
:
according to the Commission would include, in the case
of listed
companies, its proposed right to censor all "letters,
releases, advertisements,-scripts, speeches, addresses and
preprints of other materials whether such material was
eager
you
to sell
quote
can
By them
~
we
do
us
well!
10
"Warehousing" of Mortgage Loans—John J. Scully ^
Obsolete Securities Dept.
10
99
Housing Industry Stands at the Crossroads
—Thomas P. Coogan
-
guys
9
Administration's Home Credit Restriction
Program
Unwarranted !^-Rep. Albert- Rains
I
1;
\
.
TEHSTEII!
AND COMPANY
4
World Affairs
on
B. S.
And
recent editorial entitled "The
following words:
Page
Cover
Columbia Gas System, Inc.—Ira U.
Cobleigh
intended, to administer libel and slander laws.
In
and
N
The Challenge of Prosperity—Arthur F.
Burns
!
WALL
STREET, NEW YORK
:
Telephone:
—11
-The Electric Industry Looks Ahead to the
Atomic Age
-—Horace P. Liversidge
WHitehall 4-6551
•
.
12
'
-
Outlook for the Aircraft Stocks—J. C. Luitweiler
of
13
Nuclear Fuel for the World Power
Program
—Jesse C. Johnson
1
14
The Crop
originally prepared by a participant or otherwise."
Speaking of rights which we thought were violated
by this SEC proposal we commented:
"How about freedom of speech and freedom of the
press, rights which we regard as our heritage. We know
12
What Automation Really Means—Eric A.
Walker
14
Basic Atomics
Situation—Roger W. Babson..„
The "New" New-Era—Miller H.
Pontius—
constitutional amendment, nor are we aware of any
passed by our Congress, which requires the surrender
of these rights in whole or in part to the SEC."
no
Soil Builders Intl.
Shawano Development
15
not
At the New York State
Having expressed this viewpoint we were therefore
surprised at the rising current of opposition to the
proposal which appeared in the American
American
about the attempts
The
publications are gravely concerned
of the SEC to censor the press and
Cover
.
6
Defense of Prosperity—Elliott V. Bell-.
7
New Officers of the Savings Banks Association of
New York
J
J.F.Reilly&Co.Jnc.
15
.
.advertising.
:
Trying to allay these fears the SEC has written to the
American Newspaper Publishers' Association explaining
in effect that its projected control of proxy material has
to do only with participants in a
proxy campaign, that
Haile Mines
Industry
Savings Banks' "Excesses"—George A. Mooney
press.
Our
Savings Banks' Convention
Let's Curb Role of FIIA and VA in the
Mortgage
—L. Douglas Meredith
_
Commission's
Members Salt Lake
City Stock Exch.
.
Spokane Stock Exchange
42
Throwing
Curve
a
(Editorial)—_
DIgby 4-4970
Charles Shuman, Head of American Farm Bureau
Federation,
Scores Government's Agricultural Policies
22
participants. No doubt from this we
are
expected to draw what the Commission deems to be
; a self-evident conclusion, that therefore the SEC does not
newspapers are not
control
the
-
•
Let
us
.
As
;'y-
,■
,
,
Socialism
Hear Hear
As We
Bank
(Boxed)-'
CoastLeaseholds,Inc.*
See It
and
(Editorial).
Insurance
Hycon Manufacturing Co.
Cover
__
Stocks
^
Pacific Uranium Mines Co.
Servo Corporation
30
;
-
of America
48
Coming Events in the Investment Field
*Circular
48
Investment
Recommendations
8
Einzig: "Will the British Government Save Sterling?".
From Washington Ahead of the News—Carlisle
Bargeron
Mutual
concerning these candidates and the issues involved? Freerights are guaranteed to him by our Constitution, and the limitations are only those imposed by
than
*
——_L
40
Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826
'
18
Direct Wires
'
,
the laws of libel and slander.
Observations—A. Wilfred
with proxy
was
a
contests prior to the
blessed day when we
Our
return to this condition.
What is this
play
SEC
a
is not
newspaper
that therefore the
will
come
unaffected
Let
us
across
news
participant in
a
a proxy
_
examine it.
Heretofore
in
Securities
20
The Market
Security
.
.
.
proxy
Continued
on
page
29
Registration
Salesman's
and
!
Offerings
Corner
45
We
35
__
You—By Wallace Streete——
Mid-Continent
2
5
Uranium
48
__
^Column not available this week.
27
Will Become One of the
"
"
'
PubHshed
The
For many years we
have
specialized in
Twice
Weekly
1
Drapers' Gardens, London,
land, c/o Edwards & Smith.
COMMERCIAL and
FINANCIAL
PREFERRED STOCKS
Copyright
CHRONICLE
Reg. U. S. Patent Office
'
Park
25
Place, New York
REctor
Members New York Stock Exchange
25
BROAD
HERBERT
WILLIAM
•
Nashville
Boston
•
•
•
•
Chicago
Schenectady
Glens
Falls
state
Y.
issue
city
news,
Offiees:
Chicago 3,
111.
195
—
!
quotation
bank clearings,
tic.).
South
Salle
St.,
(Telephone STate 2-0613);
Eng¬
second-class matter Febru¬
as
Top-Ranking Independent
Uranium Producers
Dana
of the U. S.
1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
Current price around
Rates
Subscriptions in United States, U.
Possessions,
Territories
and
Members
Pan-American
Dominion
Union,
$55.00
per
year;
of
Canada,
$58.00
per
Countries, $62.00 per year.
Other
Bank
and
Note—On
rate
of
S.
of
$1.25
per
share
in
year.
Report Available
Publications
Quotation
$37.00 per year.
the
La
B.
C.
25,
Other
13,| 195S
market
news,
by William
Subscription
SEIBERT, President
corporation
and
Other
/
DANA
statistical
records,
Worcester
•
N.
ary
9576
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete
Albany
7,
E.
Company
Reentered
SEIBERT, Editor & Publisher
Thursday, October
TELETYPE N. Y. 1-5
•
to
'
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
D.
2-9570
1955
;
WILLIAM B. DANA COMPANY, Publishers
Spencer Trask & Co.
Firmly Believe
16
—
You
and
WHY
39
The State of Trade and Industry.
Washington
i
47
.
The Security I Like Best
campaigns participants could
speak their minds freely. In significant contests reporters
sought them out, interviewed them, and the resulting
.
Prospective
of interest to securities owners
to
Philadelphia • Chicago • Los Angeles'
33
'
Securities
Securities Now in
contest,
*
Governments
on
Utility
4
,|.
Railroad Securities
just the same and advertising will be
by Commission control?
May
Reporter's Report
Public
the word participant? Is it
literal sense as expounded by the
upon
true that because in a
Reporter
Our
mors
over-the-counter securities
HA 2-0270
8
News About Banks and Bankers
250
&
34
NSTA Notes
Request.
Singer: Bean
MACKIE, inc.
37
Funds
Request.
on
IFe maintain
trading markets in
22
Indications of Current Business Activity—
rights of speech and communication
SEC, and it will be
on
**Prospectus
Dealer-Broker
:dom of these
That's how it
office in
City
Food Fair Prop erties, Inc. * *
47
„„
Business Man's Bookshelf
political franchise that every American
enjoys is the right to vote for those who govern him from
; the President of these United States down.
advent of the
Lake
Corpus Christi Refining Co.
38
—
>
The greatest
-
1
Regular Features
'
his
(Boxied).
•
^
are
branch
to
Salt
Gulf
.
What
Communism
vs.
know proxy
'instant franchise.
Direct wire
of N. Y. Cites Potential Weak Spots
Along With Elements of Strength in the Business Outlook— 38
fights, so-called, are nothing more
or less than
private contests by security holders inter se
to unseat existing corporate management.*
'
This can be accomplished through the right to vote.
The issue is one of how freely corporate voters may
speak, write and communicate as an incident to their
we
4
Teletype: NYl-4643
Federal. Reserve Bank
news or
advertising in the newspapers and
speech and of the press is not affected.
see whether or not that is throwing us a low
'
-curve.
Broadway, New York
3
,
freedom of
Higgins, Inc.
i
law
Record
-—
Monthly,
(Foreign postage extra.)
account
of
exchange,
the
GENERAL INVESTING CORP.
fluctuations in
remittances
for
for¬
eign subscriptions and advertisements must
be made in New York funds.
80 Wall St., N. Y. 5
BO 9-1600
4
The Commercial and Financial Chronicle
(1516)
estimated
(Profit
amiss
the
salute
to
writing about
occasion
mercial
lion.
corporation named
a
a
trepid naviga¬
7
tor,
System
While
gross
the
Gas
bus
hoped
to
Inc. does
business above
•
that
we've
To be
had
its
'7' 7"*"J *
■.
the
painted
picture, let's
Columbia
in
companies
look at some
quite candid,
little
own
de¬
only
known
pression starting in 1951 and end¬
the
natural
gas
trapped
be¬
ing last year. This was due to a
short gas supply wherebv all the
system's customers could not be
neath
the
well
Ameri¬
North
U.
Cobleigh
day,
times
many
the
gold
from
Spain
nrtH
Americas.
the
Columbus could
the
seen
day
illegal for
ican
of
to
As
surely
earnings
have fore¬
mon
transmission
and
distribution
natural gas, doing business in
the
in
ters
1952-53
slowod
house
per
share
com¬
they
Not only
1946,
1953.
weather
warm
1953-54
and
down
win¬
importantly,
heating sales.
all indications, Columbia
From
has
Gas
integrated networks
for
the
production,
America
in
that, but unusually
or
largest
$1.20
were
sat¬
or
Gas
Columbia
on
slipped to 67c in
it would be
loving Amer¬
again,
hit
now
and
the
upgrade
its
shares, instead of
offering thin or incomplete cover¬
age for the 90c dividend, will pro¬
of
the
Ohio, Pennsylvania, West
Virginia, Kentucky, New York,
Virginia and Maryland.
Certain
vide
subsidiaries sell gasoline and other
hydrocarbons.
It's
old
com¬
as a
stations,
compressor
plants
and
culled
from
lion
INVESTING HELP*
Investment education should
new
sources
rnarket,"
Nor
be
to
subordinated
out¬
In
and
reservoirs,
age
in
ahead
move
its
formed
Further,
dividends
been the
for
same
ahead
move
some
the
can
underground stor¬
age reservoirs (the foregoing items
criteria for your use
With so many shares outstand¬
ing, and further conversion of the
1964
expected
as
number
a
next
year,
list Columbia
not
tude of
one
for
candidate
even
those, however,
durable equity
and
against
with
earning
improved
outlook
A. Wilfred
listed
N.Y.S.E
16%
decline
For
Co¬
adviser
Inc. common,
merit.
jet
1954
of
Power Commission
a
return
Gas is sold to non-affiliated sub¬
the rate
ington,
D.
Baltimore,
C.,
Md.,
areas- are
served
by the so-called
Group
headed
by
Charleston
United Fuel Gas Company, a sub¬
sidiary and the System's principal
of
source
Appalachian
gas,
both
pro¬
The Columbus Group,
including
distribution
to
Cincinnati, Lima
and
Dayton,
Ohio,
is
served
through Ohio Fuel Gas Co.; while
the Pittsburgh Group is served
through Manufacturers Light and
Co.,
United
which
Fuel,
buys
and
in
gas
helpful
-obtained
the
cases
were
How
The
Golden-Dersch Go.
too
ties
lion
are
communi¬
served to some 1 V\ mil¬
customers
1,200
(residential,
com-
in
Another
pacting
would
to
get
all
the
re¬
factor
im¬
1955
on
(in
earnings is the
1954) of the $126
Gulf Interstate Gas Com¬
Nov.
1, 1954,
began delivering its entire ca¬
pacity to Columbia. This delivery
to
375
million
cubic
feet
day and-mereases-SQuthwest
deliveries
to
(over
it
Columbia
a
gas
by. about
1954).
Columbia,
area
to
Edward "Eddie" Cantor has be¬
scale
and
of
the
the
vast
plan
out
take
13
paragon Oil Company
30 E.
40
ST., N.Y.C.
EVERGREEN
for
some
capital
$400
million
care
recently
and
Mr. Can¬
the
Sales
was
Director
ter
firm
Dersch
joining
Co., Inc.
I
&
adviser.
in
projection
billion
1954 and
crease
-
has
in
as
the
Theodore
become
on
common
E
de¬
cubic
of
„
>
feet
assuming
of 40 billion
quotations during market sessions.
were
determining.
."weigh
But if they
decisions
are
Rigidly
Lewis &
C.
—
Moses
McDaniel
Co., Jefferson Building.
^
'
>
-
your
you
base
your
because
maintain
the
you
decision
like
attitude
on
only
of
t'^e realistic investment
Ike.
seeking
individual
stock
And do
Lastly, diversify
•
N.
Responsibilities*^
aids
values in lieu of trying to judge the market as a whole.
this on a strictly long-term approach.
RALEIGH, N. C. — James E.
Hu.mphrevs is now with Reynolds
& Co., 120 South Salisbury Street.
with
Own
concerned,
Forget
implications—not
(Special to The Financial Chronicle)
now
Investor's
The
tion; but only if
With Reynolds & Co.
is
be
you
are
an
investor, not a political
political predilections, drawing your fiscal
implications of political events objectively. You may be justified
now in selling stocks in anticipation of a Democratic Administra¬
King Merritt & Co., Inc., Wood¬
ruff Building.
Wolf
may
not equal, only you yourself can
the relative importance to. yOu of friendship and reality.
partisan.
of
GREENSBORO,
broker just because of friend¬
available, there are certain
minimum responsibilities which the investor, no matter how in¬
expert, must fulfill.
Remember, as far as your own financial
SPRINGFIELD, Mo.—Lloyd M.
N.
a
are
Irrespective of the outside
Martin has been added to the staff
sold
rough in¬
M.C.F. a year,
a
yourself with
It is true that other things being equal, friendship
'*
(Special to The Financial Chronicle)
a
or yourself every time you hear that a friend,
manicurist, has made 50 points quickly in a stock you
.
King Merritt Adds
business,
out-do others
own.
ship.
with
wholesale representative
to preserve
Don't associate
(Special to The Financial Chronicle)
at
or
-
upset him
or
Don't get
Lo¬
F.
associated
Middle West.
a
"beat-the-market"
value appraisal of individual
Don't
don't
&
Co., Inc., 35
Wall Street, New York City, have
renz
as
long-term investment attitude,
issues, instead of merely
trying to out-guess the crowd about market timing.
With Barrett Herrick
that
Treat him
(supposedly ), making quick .profits for you:
barber,
announced
care in your
professional Tongrterm portfolio
have become associated with him, take
Encourage him
Theodore F. Lorenz Is
Herrick
use
Don't expect him to
pursuing
Barrett
few reliable well-equipped member firms from
a
lawyer,
treatment, of him.
:
Golden-
Joins McDaniel Lewis
for
Then
After you
of -the
before
your
Make sure he has the facilities, or arrangement, for furnishing
security analysis and quantitative advice on portfolio management.
securi¬
of future growth. Hence,
(convertible into
'As
"
and
bankings division, of
another leading over - the - coun¬
1958.
in
field
or
or accountant; or perhaps from an adver¬
empirical trial-and-error for making a per¬
manent selection from among your prospects.
tisement.
General Man¬
known, to
list of
a
bank,
your
investment
was
(up to Dec. 31, 1954)
2/2), $40 million in series
487
well
Manager
expansion.
bentures this year, and further
flotations in the offing as market
conditions may permit in 1957 and
8-4100
is
ties
series of bond issues, $50 million
3V2%
convertibles
in
April
1954
as
ager and Sales Director.
tor
Get
Golden-
expanding
transmission capacity, distribution
mains
and
storage facilities
to
a
with
Co., Inc., 50 Broadway,
New York City,
them
because
serves
Postwar,
in
associated
Dersch &
needs for gas supply within it, has
had
to keep in
motion a large
laid
the,'uninitiated; even more so than which medical doctor
lawyer to call on. Here are a few affirmative suggestions:
Edward Cantor
(not affiliated with Colum¬
on
taking the prerequisite examination
And this must be his full-time activity.
"How Shall I Pick My Broker?"
an¬
annual gross.
favorable
ginia border and
30%
Exchange, he must have been engaged in Wall Street
"How shall I choose my broker?" poses one of those "toughies"
come
add
bia).
It
runs
Northeast
from
Louisiana to almost the West Vir-.
runs
.
most
advisory department, research department, mutual fund
department, institutional department, collateral loan department,
custody service, and country-wide wire system.
1954; and
27 other
ment of above $15 million in
gross
does, not appear unrealistic.
pany
get guidance is the $64,000 Question confronting the
'
investment
increases
this year, but a possible improve¬
completion
over
portfolio problems is always
And in the breadth of facilities offered also does today's bro¬
kerage firm display a completely New Look. Here are some of the
specific services offered gratis by a typical member firm: broker¬
age
department, unlisted department, commodity department,
aug¬
those, applications for
on
million
Totally,
one's
,
given by the Exchange.
pending which (if they
early
in
mission
and Chicago Corp.
to
York Stock
$21,600,000
year-end,
other■•$■26' million to
It's
to
readily available adviser usually is the customer's
broker, or officially Registered Representative, associated with an
Exchange firm, who has supplanted the old-time (non-unapproach¬
able) Customer's Man of yesteryear. Licensed as such by the New
the
as
was
rate
granted)
volume from Texas Eastern Trans¬
Corp.
in
local)
1954
were
turns
reaction
non-professional.
"Eddie" Cantor With
structure. ..This
decision
(Federal and
at
from
increasing
6&%
in the aggregate, some
was
"Your stocks will behave them¬
Advisory Services
mented by further remedial rate
decisions at the retail level. Taken
all
purchased and produced.
Heat
'
outside
pelled!
favorably, and
provides
Richmond and Norfolk, Va. These
the investor"; and
client engages himself
by Federal
basis for
most
helpful to
him to
investing problems than his own. A physician does
himself; and usually not even his family. Only a foolish
as his' lawyer.
not treat
a
Gas Co., was ruled on
sidiaries for distribution in Wash¬
be
can
in enabling
vis another's
Columbia
it's
but
ocean,
education
uninitiated
useful for clarification of subjective emotional involvement in his
fears and hopes. It is a fact that anyone can perform better vis-a¬
System may not be the gem
the
of
This
most
the expert as well as inexpert investor is the outside
useful—principally because of psychological factors. Dis¬
interested
and
selling now at
5.40%, offers an
income producing equity of con¬
siderable
the
selves if you behave yourself."
yielding
Gas
May
Wall Street is
defense
marketwise),
or
Competent
supplying logical
in dealing with all paases
his adviser to follow unsound practices to satisfy his speculative
whims.
Two good maxims to remember are:' "The trouble with
dividend
important
lumbia Gas System
a
measurably
a
and
considerable
any
(earnings
seeking
for
get the maximum of benefit from an expert
professional adviser, through checking on the
soundness of his aid's general approaca and of
his actions; while abstaining from
compelling
a
mar¬
ket.
For
basically
principles;
place, in contrast to the multi¬
prevalent emotional foibles.
Investment
you
common
splashy upward swing in the
witn
of the market
remaining $25 million of 3V2s of
would
consistent
investment
of your
education offers real value in
1955.
deben¬
report).
annual
1954
betterment
the maximum of recurrent income.
basis of any¬
thing above $L20 for
expertness.
chances in conserving
capital and its purchasing power, and to gain
have
years
thereby
be
to
policies -that are
sound and logical
■
earnings.
which
the
on
adequate
key gas rate
the
System's
principal
subsidiary, United Fuel
pipeline
43
miraculously trans¬
But—affirmatively—
basic knowledge can guide all categories in the
y community toward, practising behavior and
non-professional
position to
a
net
for "beating-the-
lor at least six months before
early
case
the
can
be regarded as a means for
as a w..oie,
other supposed short cuts to speculative riches.
any
of
$25 mil¬
3l/z%
or
improved
..financing, is now in
never
predicting movements of the market
tures).
L.P.G.
12
estimated
to expected conversion of
Delaware cor¬
poration Sept. 30, 1926, 29 years
ago; and now boasts 35,000 miles
of gas transmission,
distribution
and field gathering lines, 130 gas
pany
organized
an
in 1955—$1.20
19,875,000 com¬
the
on
shares
mon
com¬
30c cushion
a
share
per
.
By A. WILFRED MAY =====
Inc. today
broad
rate
structure, its $62 million in stor¬
standing at the end of this year
(up from 18 million in 1954 due
states of
fine
a
lumbia, with its
supply, its much
on company prop¬
in retail sales.
a
result, whereas
erty
all
back
gold coins, pieces
otherwise.)
digress. The topic is Co¬
Gas System Inc., one of
lumbia
in
when
reasonable
a
isfactory return
possess
eight,
But I
the
(And
never
any peace
took
regulatory bodies rates that
represented
one
than
i more
ever
and
be
to
was
t.7
served, rising pipeline prices,
a
nagging delay in securing
from
continent
can
Ira
it,
offers
to
""~77
of the details.
shores,
he'd
sold
utility
major
broad
gold on
these
is
annual
-
Now
Colum¬
find
and,
industrial)
gas
America."
Inc.
Observations..
pletely integrated system for na¬
tural gas distribution and sales.
national curve for ex¬
$260 million which ranks it among
wit,
to
'vColumbia
if
thus
Columbia Gas System
in-
tnat
uncr
be
may
somewhere
1,000 C. F.
at
at pansion of gas sales (heating, air
public conditioning, cooking and indus¬
serving another \lk mil¬ trial uses, etc.) suggests that Co¬
and
utilities
by
in
are
The rising
wholesale,
not
seems
taxes
Columbia Gas System
and qutte rugged defensive
equity.
Since this is the week contain¬
ing Columbus Day, it
Thursday, October 13, 1955
sold.)
autumnal attraction to this not inflated
gas
estimated
between 7c and 8c per
Enterprise Economist
lend
before
roughly
By IRA U. COBLEIGH
characteristics
1959
.
the order of 690 billion cubic feet.
Columbia Gas System, Inc.
Attractive income, steady growth
for
sales
.
.
*and equity
your portfolio:—first, between fixed interest
securities; again, among your equity selections.
(Additional
available
will be discussed in
*
a
advisory services and investing media
subsequent article.)
Excerpt from the first of
ment Problems
a
series of lectures, "Your Invest¬
Today," given at The New School, New York City,
October 6, 1955.
7
.
Volume 182
Number
5472
.
The Commercial and Financial Chronicle
.
.
(1517)
be
i
Steel
The
Our Economic Pattern and
Production
Electric
Its Influence
Trade
Industry
Price
Auto
and
World Affairs
Index
President, International Chamber of Commerce
sions and the need of
total
industrial
past week, production
period
year
a
There
was
displayed a mild decline the
considerably above the level of the like
ago.
slight rise in claims for unemployment insurance
reported in textile, construction and food
processing industries as well as in automotive production.
with
was
seasonal
An
a
mills last
number
of
orders
new
$78,900,000,000,
at
the
of
end
$2,300,000,000 more than a
United States Department of Commerce reports.
The
from
some
end-of-August
July.
The
$400,000,000
seasonably
inventory
more.
than
adjusted
value
said
Department
during
normal
index
inventory
was
this
a
years
have
devote
$700,000,000 rise
was
about
Thus,
its
amount
to
seasonally adjusted rise occurred in manu¬
stocks, the Department commented. Some of this rise
reflected higher replacement costs, it added. Retailers and whole¬
salers were practically unchanged from the end of July.
At
the
end
of
August manufacturers' inventories totaled
same as
at the end of July but $1,100,000,000
worrying about where
they will obtain
Some are thinking
higher prices to bolster earnings and attract more
producers
are
the money to finance much-needed expansion.
in
terms
money
of
from
investors,
"The
Iron
Age,"
national
metalworking
weekly, states this week.
Expansion already is underway or in the planning stage, but
some of it was predicated on continuation of the fast tax write-off
program.
reason
recent years,
why prices could not move at any time, depending on the
a better return on investment.
With the domestic market
need for
about
as
tight
as
it's
economists ■' believe
ever
the
been, some steel people and industrial
picture would support higher
economic
prices.
Even some consumers have
as
continuing good supply
contrasted with intermittent shortages.
lem
in
expressed willingness to pay more
certain products if it would assure a
for
desperate effort to bring deliveries into line
with promises,
the year promises a continuing
to keep production lines rolling.
but the outlook for the balance of
scramble for tonnages necessary
Prospects for any inventory build-up are out of
Age" concludes.
the question, "The
Iron
minute—that is—
week.
Buick which began its changeover this week—was the lone
company still producing 1955 cars, said "Ward's Automotive Re¬
ports," and the General Motors division's expected 6,491-unit out¬
put was but a fraction of the industry's anticipated total of 84,196
Building of 1955 model cars dwindled to a
7.7%
of United
States automobile manufacturing the past
e s.
curred
either
American
the 84,196 count was a 27.2% dip from last
Chevrolet, Oldsmobile and Studebaker, the only companies completely idled a week ago by switch¬
overs, put the biggest dents in industry programming.
Pontiac and Cadillac, meantime, led the way among General
Motors divisions in 1956 model making the past week, reported
"Ward's," although their operations were token efforts. Packard
too, saw limited production.
Ford Motor Co., on the other hand, clipoed along at near-peak
1955 weekly levels last week. All Ford Division plants were set
to work
Saturday, while all Mercury facilities except Wayne
week's turnout of 115,723 cars.
(Mich.) operated on Saturday last.
that
Khrushchev and
me,
difficulties stem¬
machinery and stock pileups caused
by rigid-inspection turnbacks, accelerated production over the
preceding week by 63%.
At American Motors, Rambler assembly lines started to roll
Chrysler, although hampered somewhat by
Continued
on
page
36
but
sinceie
for
an
time
to
you
or
not given up
nist
of
a
Lee
\varren
Pierson
few comments about the inter-
national
scene
point
the
of
from
the
stand-
business-
American
man.
United
The
is
States
often
re-
to as a "young" country—
especially by its own citizens—
although the fact is that our Government
the
is
ernment
the
And
outlines
which
the
of
one
world.
thing1
the
make
to
ji
domination.
world
The only reason
Commerce
and
Jf1
relax
g mil-
the Kremlin
a
the idea of Comma-
tensions
itary
In¬
Chamber
Khrushchev
In fact
granted.
qh 6f
tell
the
about
be
g
that while he favors
little
a
^heie is not
hp
past history of Russ a
leaders to cause usi to tako them
recent
this
be
RifiiinYifirfLv
Bulgamn may
form
our
is the
oldest
in
Constitution,
of Gov-
oldest written in-
the
about
is
Russians
for saying anyNew Look of
it is be-
because
the
of
rest
Free
that \ the
mentioned
bave
A1
.
.
.
,
...
,
.
How is this leadership to. be
exerted9
-
The answet goes far
manufacture
atomic
and
beyond the
airplanes,
of* guns,
bombs
hydrogen
or
the constructi0n of great industrial piants.
more
the
fougM
that
day
all
on
any
is what
every
on
night—
and
minds
the
for
Cold
we
can
going
the
0f
Battle
being
and
battle
mjnute
at
us
things> Much
intangible is
easy
difficult
another
the
These—for
the
rate_are
of
men
fronts.
we
mean
In
by
War.
will
this
win
if we
the con-
fight
succeed in spreading
About a year
invited to speak to a
cept of democracy.
i
ag0
the Western large
dissolve
to
the
of
essence
ing used in connection with disarmament negotiations and as a
wedge
that
1S:TT
of! friend-
displays
ten
tion of leadership,; The question
.
u
opportune
was
German industrial-
group of
Alliance and particularly to slow- jsts at Baden Baden on the adUP or S^°P the rearming of the vantages
of the economic inteGerman Republic and its unifica- gration of Europe. In trying to
tion with East Germany.
make a point I defined democracy
Russia's great secret weapon is as an inherent consciousness of
secrecy itself—which permits her the rights of others.
Chancellor
to confuse other governments by Adenauer, who was present, was
hinting one day at a reduction of kind
enough to say that
he
arms and on another of alarming
thought the definition was a good
strument of
(The only
its kir^d still in force, increases. Because of this situa- one.
similar' organic law is tion it seems clear to me that any
Each
the
"customary" or "unwritten"
constitution oi Britain.)
serious disarmament program
must call for the destruction of
barriers which prevent free
movement of people and information across the frontiers of the
Communist World as easily as
the
Constitutional
Convention over our own borders. In other
completed
its
labors.
These words, we dare not give up the
changes have brought us to a right of inspection and control.
feel
"young" we
sometimes
forget
the
changes
which have taken place in
the
world during the 168 years since
we
position of leadership — political,
military and economic — of the
Free World. Also they have led to
Another demand of the Russians of which we must take a
dim view is their insistence that
disarmament
shall
require the
abolition of all military bases on
of Russia (or the
World Power—but
unhappily not as a Good Neigh-
foreign
bor!
iterated
the
emergence
Soviet)
as
a
addition
the
to
political
should not overlook
important technologiadvances, especially the discovery
and harnessing of new
sources
of
power.
These
are
available for weapons for wholechanges
the
we
recent
cal
sale
destruction;
for more con-
or
^rrthreat
of
aggreS-
Friday
(Mr.
soil.
such
only
to
address
his
in
Molotov
view
a
re-
last
only
Danube
to
and
River
—
has his
us
much
go
for
subtle
the
broad
philo-
principles depends upon practical
day py day efforts.
Because a
fight for an ideal seems such a
colossal undertaking we are all
inclined to leave the whole business to the Government.
But the
job is
so
ernment
big that even the.Govdo
cannot
it
alone—and
ance of us all.
perhaps the biggest challenge
tbe western World is to gain
the conf jdence of the governments
and peoples of the underdevel-
of
the
to
the oped countries.
United
the
idea of
But because
more
sophical approach. Unfortunately,
the accomplishment of democratic
mouth
while
own
is.
than
communism .it is more difficult
to explain; and therefore, harder
to sell.
is
Chinese
the
the
0f
democracy
democracy
the needs the constant help and guid-
United Nations.) This sounds reasonable at first thought but actually it is unrealistic because it
would require the Russians to retire
what
ous
They are numer-
but because I was recently
Continued on page 32
States on the other hand would
sion from Russia and its satellites,
(since the end
States
United
the
of the last war) has
the
to
ming from vastly revamped
recent
ex¬
be
1
1
The
desirable
a
mai^ch of events over the past
century has brought us to a posi-
Soviet
or
is
P1® ®asfs °f Our Leaderships-
fundamental change
no
poljCv
o c-
to
would
In
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. ■i
Louis
m
been
in
time
It
ty
autos last week.
At the same time,
has
lot about
a
the problem
World.
change of people and ideas; there
activi¬
its
to
Because
Meanwhile, steel procurement continues to be a serious prob¬
for most consumers. Allocations have been cut to the bone
a
next
the
ferred
declares this trade weekly, steel price rises
have been tied in with higher wages for steel labor. There is no
In
during
I
to
con¬
siderable
The government has closed the door to further rapid
amortization for steel ingot expansion.
and
the While these has been a favorable
of change in
atmosphere; of good
of manners; and an increased ex-
ter national
above August of last year.
Steel
President
Chamber
therefore,
facturers'
$43,900,000,000—the
confidence in "built-in buffers"
.
$79,600,000,000 at the end of August.
Almost all of the
and
earlier, the
year
tnat
by
Commerce
had
I
ago
elected
be
will
month.
the
weeks
to
International
the
two
increase
rose
honor
of
inventories
held
August
Several
many
delivery before the first quarter of 1956. Automobile
and freight car manufacturers continued their high level of steel
ordering.
hear
and
on
act
"the healing decade" is
realized it can be accomplished.
We must be prepared to do our
part—always insisting upon con¬
ditions essential to our security
before World War II.
by steel
anxious to
orders for
Businessmen
expresses
now
to
years
Says Free World is better off today than '
against adversity.
reported
was
week, indicating that many steel users were
low inventories.
Steel manufacturers refused
replenisn
that of 1929, and
to
layoffs
increased
will
We
be
goal and if Secretary Dulles'
pressed hope that the next
nations.
Reviews our policies with relation to Europe and Asia, and
traces impact of U. S. foreign and domestic policies on world
affairs. Foresees no likelihood of another depression similar
output
doubt that dis¬
no
Disarmament
world ten¬
pattern of co-existence among
a
recrosg
objectively on the
various proposals which will
be
presented.
Chairman, Trans World Air Lines, Inc.
Failures
cross—or
be
can
it from
Prominent industrialist calls attention to existing
While
world.
By WARREN LEE PIERSON*
Production
Business
There
will
Commodity Price Index
Food
on
to
oceans.
armament— general disarmament
—is the real key to a peaceful
Output
Carloadings
Retail
State of Trade
obliged
—the
5
devoted itself
task, of strengthening, po¬
litical ties with friendly
and aiding
military
prove
same
countries
We
are
them to build up their
establishments
and
pleased to announce that
im¬
their economies.
At the
time, we embarked upon a
of National Defense.
Theodore F. Lorenz
i
'
1
.
vast program
All
this
has
cost
billions
of dol¬
more accurately, has used
staggering amount of our
has become associated with us as our
lars or,
up
a
dwindling natural resources.
Wholesale
Middle West
International Tensions
For ten years we
Representative in the
have been liv¬
ing in a world in which many of
activities, whether we real¬
ized it or not, have been influ¬
our
enced
A
is
by
international
question
tensions.
can ask ourselves
this
situation
must
we
whether
Barrett Herrick & Co.,
35 Wall Street,
continue indefinitely?
A lot has been said and written
Sum¬
mit" and "The Spirit of Geneva."
about
the
"Meeting at
the
Philadelphia, Pa.
Syracuse, N. Y.
Arlington, Va.
New York 5
St. Louis, Mo.
Washington, D. C.
Providence, R. 1.
Kansas City,
♦An
Kansas
Kansas
address
by Mr. Pierson before the
City
Chamber
of
Commerce,
City, Mo., Sept. 28, 1955.
Inc.
Mo.
Springfield, Mass.
Rochester, N. Y.
Bethlehem, Pa.
6
The Commercial and Financial Chronicle
(1518)
savings bankers in each one ready to go it alone. It
long before the is obvious that the answer might
thirties.
A 3%
ceiling, for ex¬ strongly
influence
the
recom¬
ample, had its advocates around mendations of this Committee.
the beginning of the century. But,
But, remember, Gentlemen, in
remember, it took a financial weighing this
question, do not
catastrophe to put ceilings into ef¬ overlook the fact that there is
fect.
This
stamps them as an still an area for individualism.
emergency matter.
The Banking You are still the local
bank, the
Department does not regard the
neighborhood bank, the bank with
discussed
Savings Banks' "Excesses"
By GEORGE A. MOONEY*
Superintendent of Banks, State of New York
disturbed and threatened by
prosperity," New York Banking Superintendent points
Asserting Savings Banking is
"this
out
(!) competition
"excesses" of savings banks:
recent
as
i
much
of
On the other
growth
think
that
this
urge
pays an
Many
new
;
Under
rent
shouts pros¬
perity when
walks
one
the
in
ing,
It
as
is
and
And
Savings Bank¬
yet
industry, is disturbed.
very
prosperity that
an
this
I
to
propose
talk
today
this threat and to offer
about
ahead.
strength
surplus
the
their
watched
of
tellers'
;,i
#
There would be
the
bitter
one
deposits
would
longer good enough.
It has to come faster, regardless
of
the
cost
of
attracting
new
money.
And if growth comes at
the expense of neighboring sav¬
ings banks that cannot yet equal
the top
no
dividend rate,
for
worse
much the
so
attitude—The
shrink.
the
be "hot
it
sam,
the
with
moves
Thus, if nothing is done, the way
we are headed, sooner or later the
Don't misunderstand
me.
the
hiding behind system,
using sys¬
harbor against the
winds
of
vigorous competition,
have no place in our scheme of
Savings Banking. All we want to
tem
as
a
snug
make clear is that recent
excesses,
If continued, would mean trouble
for
you
and
your
of
competition
tions
They
to
make
could
a
stay
force
Competition
in
Raising
Dividend
Rates
If
the
we
go
on
dividend
this
rate
way
will
a
celebration
institu¬
♦An
E2nd
Banks
address
Annual
by
Supt.
Conference
Association
of
the
Mooney
of
the
State
the
at
Savings
of
New
York, Washington, D. C., Oct. 3, 1955.
tough decision.
out of risk in¬
This
to
of
So
us
much
return
On
for
preach,
be
two
step
marily
is
step is pri¬
one
m
second
which
is
will
we
assistance
which
cooperative
your
The
on
the
first
but
ours
one
Let
action.
policy, we have a
for your con¬
The
thoughts.
but
of
program
enlist
we
field
that
yours
give
be
you
are
savings
competing
institutions.
of
The
that
Banking
Department
in
of you might
say, none of these things might
happen. But, Gentlemen, Savings
Banking cannot be trusted to luck.
some
and
gained
partment
to
Their
Be
A
Dividend
lets
Ceiling?
to
Now, what about reimposing a
dividend
ceiling?
I know that
some
savings bankers favor such
action.
I was surprised recently
to
learn
that
rate
ceilings
has
a
also
Such
put
earnings
with
plan,
a
stop
a
no
believe, would
we
the
to
exhaustion
of
entirely
in dividends,
thought for tomorrow. It
would slow down any
accelerating
in
a
brief word here about split divi¬
rates
and
their
purposes
dend
legislative
privilege
man¬
com¬
around
In
hotly contested locations, as
know, our policy was to grant
not
customer
as
who
if it
uses
were
Second, split rates can be a prac¬
way of experimenting with
higher dividends, while earnings
tical
still
do
across
not
the
technique
justify
board.
exist
know, but I
course
can
that
in
a higher rate
Difficulties of
split
see no
a
rates,
hazard
I
on
bit of old fash¬
necessarily
ingenuity cannot overcome
ago, with accounting
machines
still
in their
infancy,
over
half
of
all
savings banks
were on split
rates, and not only
two ways but three ways and four
years
But, do
•wish
my
that
you
ways.
'In
City
days, one New York
savings bank announced a
split rate based
bank
that
chair
of
some
on some
you
were
whatever.
You would hear
on
there
be
an
Savings
Banking—A
System
review of the Banking Law.
Savings Banking as a
with a collective \ func¬
tion?
York
'highly
whether
savings banks in
State
to
be
viewed
independent
as
New
129
institutions,
able
the
officers
damage
any
to television. They sell mu¬
savings banking short by sell¬
ing rate and rate alone.
Now, the
Banking Department
quarrel with savings bank
advertising as such—in fact, it be¬
has
no
lieves
advertising which promotes
thrift should
be
encouraged.
Ad¬
vertising which seeks to draw es¬
tablished accounts away from sis¬
ter
institutions, however, is not
only contrary to the system con¬
cept but is opposed to the public
interest generally.
The power to compete
through
advertising is not absolute. It may
corrupt. That is why you find it
frequently circumscribed in other
professional fields, such
as
medi¬
cine and the law, where the pub¬
lic interest requires that quality
of
service,
and
not
cut-rate
mine
promotion
advertising
customers'
stunts
deter¬
choice.
I, there¬
fore, propose that your association
seriously consider adopting a code
of advertising ethics with a view
toward
directing your message
toward
more
the
encouragement
of thrift and less toward
the
transferal
mere
of
inducing
existing
accounts.
Let
me
end
throughout
on
my
tem.
a
theme that
to
runs
remarks today. Its
Your association
bank
was
sys¬
formed
the well-being of the
promote
whole system,
particularly to pio¬
and safe banking
practices. Well, if you still are a
system, you ought to act like one.
neer
in
sound
On the other
cf
you
idea
hand, maybe some
who do lip service to the
do
not
care
about being a
longer. Some of you
even
may
find the system idea
stifling. Some of you may* believe
that you can do better without a
system. How many of you there
are we don't know—yet. Response
to our program will help us find
out. If the great1 majority want to
cast
system
aside,
however, I
won't stand in your wav. If you
want to
be free of system ties,
system
so
any
be it.
your
But, please, let me know
decision. For today, I leave
where it belongs—
problem
your
hands.
Akin Lambert Adds
(Special to The Financial Cheonicle)
LOS
ence
S.
McCune
to the staff
Inc.,
Calif. —Clar¬
ANGELES,
639
has
been
South
Co.,
Spring Street,
Angeles Stock
members of the Los
Exchange.
OFFICERS
Daniel T. Rowe, President
William K. Cairns, Jr., Vice President
J. Arthur Seidman, Vice President
Wright, Vice President
Edmund G. Flowers,
added
of Akin-Lambert
BROOKLYN, NEW YORK
Howard R.
is
for the good
Do
Kings Highway Savings Bank
Frank
are
bank
concern
system?
Is it
regard
Or,
bills
tual
pay an
system? but, let
application
for a
Or take the current legislative
system,
the
bank
"System!"
to
of
every
branch in that banker's
area, and
he quickly cries
t
always have
duration. This
paying 2%% chose to
savings
a
pay an extra dividend today,
do its trustees and
management
a
argument in the book, except one.
.You won't hear a whisper about
.a'savings
armistice
I
in
or
second
the
an
occasions when
a
savings banker pleads for
branch, or change in location,
Thrift Corners
When
in
recent
tops
rather
it this way?
have
to
was
see
for
as
us
advertising raids against neigh¬
boring institutions. Your industry
has not only adopted, it has re¬
the
to the extra
lk% on funds that have been
in past
steadily on deposit for a year or
-performance, but
to
one
longer. Such a policy facilitates
that had been hurt by
population
gradual transition to higher divi¬
changes and needed growth for a
dend territory, at the same time
•fresh start in a
new
neighbor¬ that it rewards
genuine savings.
hood.
institution
were
then,
on
savings
a
checkbook.
a
ioned
where new out¬
order, we have tried
the
the
account
Fifty
deserving institutions.
branch
a
concept
The De¬
Now
proposal: Let
keynote is the savings
Incidentally, in this connection,
this
Thus,
spread
you
5
26 (ORTMNDT STREET
growth in their stride.
system-
-some
-
SAVINGS
through
prevent destructive
are
among
sav¬
institution,- but
one
petition.
Should
of
apply it to branches.
date
mu^-
only the
wide cooperation.
Let's take the system
agement.
has
the assumption that
on
strength
man¬
an¬
is urgent because in the past
swer
ings
luck,
Let
banks, or an
individual,
group
life
requires
take
might be in order.
First, split
question
of rates can
give a special reward to
in fact a system
the diligent, faithful saver over
management
It is clear
can
the
undermine their desire to continue
own.
and
surplus. brackets
it would have to be flexible.
you, means not
ratio
top
me
collective
their
cally, it is clear, the lower the sur¬
plus ratio it starts out with, the
higher should be the plow-back
to surplus on any given
deposit
growth.
Only institutions in the
the
tuality to
surplus
may
drop in the system's surplus cush¬
ion. Like all such plans, of
course,
unrelated
a deposit drain.
strengthen their sur¬
position, but it might also
on
some
hurt,
"Advertising
Raids"
might be done to the industry?
Instead, they mount their promo¬
tion artillery, from ads to hand¬
Policy
philosophy.
the
to
dividend
sideration.
Con¬
the
deserve
,
A Cessation of
consider
savings banks.
mutual
the
the
weak
practice
you
will
raises
whether
might
EAST RIVER
the
stitutions.
acted
plus
Sister
you, however, that I have
desire to preside over the
liq¬
uidation of good, serviceable in¬
rates would suffer
longer
institution
an
to
neigh¬
assure
•
by
On Dividend
no
This
be merely a matter for quiet fam¬
ily
you
be (a reduction in
may
number of
rise in
no
where
fail
you
institutions
With deposits
growing, that would further speed
up the drop in the surplus ratio.
would
for
be part of your sys¬
to
If
there
tirely in dividends.
that
place
mutuality which
force
would
large number of institutions to
exhaust earnings and jmore en¬
With
industry.
Consideration
pressed against the wall.
tem.
a
Banking Department like
competition. Moribund institutions
whole—The
a
of
supposed
exposing a dwindling surplus to
greater risk. Banks paying lower
as
urge
these
laggards.
sideration for sister institutions is
tides.
heat
the
to
be crowded off the sidewalk
may
or
dividend
We in
dustry
I
of
borhood advantages.
all
But there is another side to my
vestments, but that would hurt
earnings.
Or they could try to
boost earnings, but that would be
in¬
system?
your
go
savings bank philosophy.
In the
past, you have never been ruled
by the rough and tumble of the
This money comes in large lumps,
it is always on call, and like flot¬
And
impact of
most
Department,
market
(hem!
But, have you considered the
long-term implications of such an
should
seem
Institutions
money," taken in during the pre¬
growth is
them
Lack
vious round of dividend increases.
heady. For some,—natural deposit
job
would
good
a
their charters.
leaving
money
cages
of
program
a
It
believe
I
do
nothing.
the
plus from becoming inadequate, a
growing institution must retain a
larger share of its earnings. Logi¬
tie
the
the
become
dealing with it.
You stood
together splendidly
during the lean days of the de¬
pression, but for some of you these
good
times are just a
bit
too
for
that
outstanding
or
meantime, what hap¬
system?
Some
threatens you as a system.
credo that I try to ap¬
institutions
make
con¬
to
George A. Mooney
more
the
to
for
count
day notice
answer
neighborhood ties of this kind
solation, if you can call it that,
for the non-participants—the more
conservative
bankers — as
they
In the
the
would
itself
of
pens
dividends;
whole
Superintendent.
as
that
and
v
But before outlining the
of my
ply
cur¬
longer be
no
;
the
not
bit
not.
or
make
My own belief is that it
long day before family
a
wrong to
We, in needed.
As regards the first proposal in¬
distinguish
among progressive, well-managed volving the question of the ade¬
institutions; Savings banks whose quacy of earnings retention, we
management does just an average are thinking in
terms of what
job for depositors, and dormant might be called a "conserve-asinstitutions
that
barely deserve you-grow" plan. To prevent sur¬
care
more
benefits.
earnings would
rule.
Depositors
staffs
it
circumstances,
to
problem.
primary test of ability to pay.
Undivided profits would become
the basis of all operations.
Live
for today and let tomorrow take
Things are
just dand y.
salary
afford
can
such
oppor¬
additional steps we have in mind,
let me take time out to insert a
the
door.
have
he
whether
that
gleaming
look
one
suit,
follow
would
better
We know that the 30
is
knows.
I
their decisions
full appreciation of all con¬
with
extra quarter per cent and
it from the housetops,
other
the
that
' much
to
seems
adoption.
reaches
will be
give savings bank
sequences.
advertises
offices
have
if
Thus,
retaliate.
to
rarely been
better.
of your
raised.
be
can
will
a
tunity
would feel the
those under attack
has
re-
a
dividends
fore
,
Savings and its depositors. It will be, as it
Banking is so prosperous. There already has been, a declaration of
is no shortage of mortgages and war on all the other savings banks
in
the neighborhood.
for the past several years deposit
Naturally,
know
to
have
we
policy
a
local
ties, the bank that fined some weapons of. rate war
friendly service, the bank which you so loudly protest
out even to school against when used by your com¬
children, the bank that everybody petitors.
once
trustees
It's nice
hand,
Such
wider
gives
cooling off period and
again asked for a 30
day notice to the department be¬
have
Thursday, October 13, 1955
,
close
that
imposed
Banks. Advocates paying higher rates on long-term
deposits and wants an "armistice" on advertising raids against
neighboring institutions. Stresses "system" aspects of savings
ings
banks.
as
you.
surpluses of New York Sav¬
limit dividend rates and increase
State
hassle
an
emergency,
this may disappoint some
current
leading to "hot money" deposits, and (2)
lack of consideration for sister institutions. Reveals plan to
in dividend rates,
1
by
York
New
.,
Secretary
Tonjes, Comptroller
Volume
182
Number
5472
.
.
.
The Commercial and Financial Chronicle
(1519)
I
The Defense of
Prosperity
said
By ELLIOTT V. BELL*
Former New York Superintendent of Banks
also
episode of 1953
be
gave
"man
Yet,
point.
we
says
are
At
..
this
States
in
moment
we
mentous
are
the
experiment.
We
a
spread
tempting to control the economic
Cycle.
On
of
As
the
outcome
a
I
this effort
was
Yet
whole
future
West¬
our
If
we
wrath'
scended
World.
ern
the
This
old
ground
early 30's, the
would
be
Elliott
opened for the
i
r
u m
h
p
-
maining free world. At
the
very
re-,
high-level
consumption
the
be argued.
Today the
United
States
is
at
not
divine
bestowed
ever
people
of
nation
any
the
upon
anytime,
anywhere.
Our
goods
annual
and
Product
value
services
of
all
—
the
produced
in
thy bread."
not
in
They
are
for
sent
their
to
are
folly and
not like hurri¬
Depressions
prevent.
are
man
on
and if
me
make them
we
we
amount
of income people
spend, and
so
is
the
they are spending.
There is hardly a cloud in the
sky and the ship sails on before a
to
'
human
Then
move
creation
of
much
a
later
statement; that's
I
was
that
dom
from
comes
a
full
life
usefully lived.
"We
the
simply going through
are
advanced
stages
of
has
succeeded
never
abolishing war yet we are all
agreed that this time we must
succeed in what
been
in
end,
booms always end,
as
another
bust.
The
bigger the
have
planning,
in the 30's
10
Economic
was
a
three
or
years,
Compared to preventing another
great
war,
deal has been learned
good
a
in the past 25 years about how to
It
is
not
view
for
view,
many
but it is
experienced
the
men
I have great
time
very
*
we
were
of people
pressions?
ceeded
in
100 years
than
We
never
suc¬
the past.
In the past
there have been no less
24 complete
covering
have
a
perity and
rise to
a
business cycles,
a peak of pros¬
subsequent fall into
recession. The relentless regularity
with
which depression has fol¬
lowed
boom
evoked
over
in
our
the
country has
years a
wide¬
it has
to
address
State
Oct.
Banks
by
Convention,
3,
Mr.
Bell
Association
of
before the
New York
Washington,
1955.
D.
C.,
succeeded.
never
biggest,
in
arm
and
dow
were
1940
its
course.
the
unem¬
labor force."
history.
that
early
most
the
At the
it
den
recovery we
Here
reces¬
Adminis¬
work of
to
stirring fight
inflation,
all
the backs
the
St.
hauled
and
alike in this
off
set
that
out
the
is
result
recently described
most
as
it
by
Arthur
was
cent
Burns, Chairman of the Council of
interesting episodes
political history.
The
Move
Economic Advisers:
of
the
We
"These drastic increases of tax-
the Democrats
as
re¬
Eisenhower
are
fond of
moved
of
era
and
mortgage
had, in
a
—
sense,
a
the best of
conservative Ad¬
that
seemed
to
in¬
spire confidence
on
all
sides,
boldly pursuing compensatory fis¬
cal
and
monetary
policies that
some of its leading figures would
probably have denounced a few
years
ago
as
down-right New
Deal heresy.
We
President Eisenhower's Cabinet,
*
the
same
housing credit
an
ministrative
horses
Administration
ation served to reduce the spend-
like
At the
Administration
up
two worlds
pumps.
in
look
dream-world.
This is, to my mind, one of the
Here
the
loosen
best
lending and installment financing
that was right out of a salesman's
was the threat and
Georges had to be
knightly
manning the
piece of rapid-fire
that
made, Mr.
a
tightwad.
a
launched
deflation,
their
to
was
Roosevelt's
time
turned
not
Then
series of
pump-priming
in
a
middle brackets.
a
"
ornamental figures
engaged
knew
sweeping tax
involving an over-all re¬
duction of the
tax
bill by, $7.4
billion
plus many
long-needed
and desirable changes.
espisode
of
September,
even
reforms
1953 and
some
by
people
followed
dragon
inflation and they were hollering
about a balanced budget at the
top of their lungs. All of a sud¬
history. Republicans
Democrats
may
never
know
Continued
re¬
on
to
what
page
2G
SAVINGS BANKS TRUST COMPANY
14 WALL
STREET, NEW YORK, N. Y.
by
owned
TRUST
the
Mutual
COMPANY is
the
Savings
of
Banks
1
Association and its members.
on
York
New
also
a
research
to the Savings Banks
matters of interest
•
:
DIRECTORS
JOHN ADIKES
President, Jamaica Savings Bank
Jamaica. /V. Y.
Chairman
that
hope
New York
AUGUST IIILEFELD
President, Savings Banks Trust Company
New York
City
the
WILLIAM BRYSON
black
CHARLES W. CARSON
President, The Albany Exchange Savings Bank
ADDISON KEIM
bit.
were
see
one
most
of
re¬
ROBERT M. CATHARINE
President, Dollar Savings Bank of the
pop¬
City of New York, New York City
July, I went in
CHARLES H. CHURCHILL
of Wall Street's wisest
influential
President, Cortland Savings Bank
"Too
man.
Cortland, N. Y.
bad," he said, "but these ripe ap¬
ples must fall." Then I remember
another occasion much later when
had
and
the
of
of
ELLIOTT M. ELDREDGE
Chairman of the Board,
The Williamsburgh
Savings Bank, Brooklyn, N., Y.
being Super¬
in
Banks
New
president
said
to
me,
"Do
BRYANT GLENNY
President, Buffalo Savings Bank
Buffalo, N. Y.
you
bank the right to fail?"
my
I shall
always have a kindly feel¬
ing for that gentleman because
his question helped to lift me over
a
us
EARL HARKNESS
President, The Greenwich Savings Bank
New York
rather tense and difficult situa¬
tion.
I
believe
that
today
in the banking field are
ciled
to the
tions
but
as
are
fact that
"denied
our
the
all
recon¬
institu¬
right
stitutions
it is against
be
allowed
public policy.
New York
City
.
.
CLARENCE G. MICHALIS
Chairman, The Seamen's Bank for Savings
in the
City of New York
City >
»
New York
'
JOHN I. MILLET
President. The
Troy Savings Bank
Troy, N. Y.
.
,
President, Rochester Savings Bank
Rochester, N. Y.
GEORGE O. NODYNE
President, East River Savings Bank
New York
City
DANIEL T. ROWE
President, Kings Highway Savings Bank
Brooklyn, N. Y.
EARL B. SCHWULST
President and Chairman
The
Bowery Savings Bank, New York City
to
as individuals may fail;
practical matter, our in¬
cannot
City
THOMAS H. HAWKS
of
We
a
.
President, Union Dime Savings Bank
York
certain young savings bank
a
deny
honor
„
J. WILBUR LEWIS
all around like firecrackers
the Fourth
on
I
Albany, N.Y.
of Rochester, Rochester, N. Y.
days of the
early 30's when banks
ping
Executive Vice President
Savings Banks Trust Company, New York City
learn
can
little
a
Brooklyn, N. Y.
City
President, The Community Savings Bank
back
President, The Dime Savings Bank of Brooklyn
Trustee, Cayuga County Savings Bank
Auburn, N. Y.
The Attempt in the Early 1930s
member in
GEORGE C. JOHNSON
ALBERT O. JOHNSON
All this is
mankind
of the Board
American Irving Savings Bank
to;
J AMES R. HUGHES, JR.
First Vice President, The
Savings Bank of Utica
Utica, N. Y.
State,
savings banks' bank, serving them exclu¬
depositary, correspondent, investment consultant and trustee;
as
body and clearing house for information
little from experience?
a
fail."
*An
Savings
the
many
the death with that old
to
error.
depressions by
passing laws or drawing up reso¬
lutions or making speeches either.
intendent
recurring de¬
Now
were
the heaviest tax burden
in peace time
speed
as
growing threat of
a
tration's
Skeptics will say, of course, that
happen.
prevent
fastest shot
The bal¬
anced budget went out the win¬
You will recall early in 1953
Eisenhower
Administration
-
sion.
planning
struggling to
also loading onto
you cannot prevent
I
we
the
in
re¬
-
happened in
ROBERT A.BARNET
11 do not say this dreadful reck¬
oning they foresee cannot happen.
I simply say we must not let it
Can
Reserve
market
nomic stability.
and
Preventing Recurring Depressions
what
faced
failure.
bring about economic
Throughout the West¬
ern World it has become accepted
that governments have a
prime
responsibility for promoting eco¬
to
<
unprecedented acts the
gave the money
Federal
cycle.
ness
Think
whose judgment
respect.
1
my
of
dry
■
pink tea."
a
That paragraDh is all in quotes.
'54.
million
easy.
for ..economic
to
late
Contrast
deal with the swings in the busi¬
but I know it is coming; and when
it comes, it will-make 1929 look
like
We
Easy- money didn't succeed in
making; jobs; neither did deficit
spending.
Why?
The answer, I
think, in retrospect is
and
as
/
perfectly true, but is it too much
two
of
series
o-called
scrapped even
on the fea¬
extolling it. In a
was
interviews
ture
Now the only thing good about
economic
still had
we
unemployed.
.
of
years
That it has been tried before and
another
sharply
s
in¬
and
"hard
was
before the ink
taken at the time to lay
the civilian
choice
no
boom, the bigger the bust and this
is the biggest boom ever. I don't
reckoning is com¬
ing, maybe next year, maybe not
Even
the
eight
before has
never
We
cone.
know when the
for
money" policy
the
but to do the impossible.
another
great inflation," he told me, "and
it will
with
The
boldly.
can
fiscal
was
swiftly
stop making them.
Mankind
it is too good to last.' is,
speaking a few days ago
to one of these friends, a man with
a
long and distinguished career
ip banking, one who has the wis¬
•
taxation
foundation
with
sively
friends say
measures
a
fact.
a
impossible.
We .are not entirely
ignorant and defenseless. The fact
of
the
there
move
lower and
and- wholly
experienced
that
to
that experience is that somebody
learned something from it.
BANKS
more
onerous "
That's really not a par¬
Organized
and
there
telligence
of
SAVINGS
Small wonder that many
RFC
Administration
be
poli¬
1930's, which combined
doubt
cies of the
metamor¬
preventing
anotner
great depression should not be so
older
Nevertheless, somewhere in the
pun¬
they weakened the in¬
retrospect,
.
little
to snake farms.!
even
1957.
;
there
the
"In
i
in those
fair wind that will surely last well
into 1956 and perhaps even into
my
to
a
can
in
have
where
and
as
Churchill cigar.
to
they are made right here
earth by people like you and
the highest level in history; so is
employment—65 million jobs—so
amount
least
supply
soothing
as
an
con¬
made,
also
the
and
servatism
off
and
ployed constituted nearly 15% of
and
made
floods, great natural
catastrophes beyond human power
the country—is crowding $400 bil¬
lion.
Industrial production is at
is
incomes
used
give
confidence
of
covery
were
upon
and
canes
to
Gross National
total
and
vio¬
of thy face
sweat
visitations
they
thought
laid
curse
are
men
excesses;
perity
of
after
back¬
somehow
in hell either.
or
enjoying the greatest, chastise
widely distributed pros¬
and most
the
earn
Depressions
and
peace
redistribute
being
who
tycoons,
ness
aroma
before
the de¬
cline was on, the Administration
announced a cut in personal in¬
come taxes averaging 10%
in the
tisan
lat¬
employment
ancient
thou
heaven
!
the
shalt
increasingly
was
laissez
had not fully recovered from the
1929-33 collapse before we went
into the 1937 tailspin; and in 1940
our
the uneasy
even
here would face social and po-. Adam—"In
we
It
curing and preventing de¬
pressions really flourished. The
performance didn't equal the con¬
attitude
Puritan
our
high
least,, late
litical changes of a most unhappy
sort.
I do not think that needs to
r
in
that
of
minding us, is loaded with busi¬
about
a
Bell
.
.
much
in
and busi¬
It was, of course, later in the30's under the New Deal that talk
Job
our
Testament
still .colors
There is
of
Communism
V.
law
involved.
the
in
and
delighted
thinking
about the business cycle. We have
a guilty feeling that when we
get
too prosperous we, like. Job, are
inviting the wrath of the gods; ;•
collapse of the
the
are
phosis
de¬
poor
most
nourished
t
him and
upon
sion
surely
a
put through the wringer in
again
into
a
Great Depres¬
the
is
gov¬
Jehovah
bloodthirsty of
ter-day business haters.
to plunge once
>vay;
of
fashion that would have
were
like
there
sin was that he
and; successful.
only
prosperous
the
was?
of
consumers
versation.
whose
hangs
of
that
end
of
firms; they also created grave
uncertainty about the future. By
spreading fear that the tax system
whereby government undertook to increased snending and borrowing,
interfere drastically with the free
disrupted the confidence of many
market and attempted to deny the
people in the country's economic
right to fail—not merely to banks, future and thus reduced the efbut railroads, industrial companies fectivenes
of
the
constructive
recall my Bible, Job was
decent, well-meaning citi¬
very
zen
the
opinion
the
was
another radical
days,
erning the,business cycle.
at¬
are
starve.'"
power
centives to invest and to innovate,
was
can
basic, immutable moral law
mo¬
ing
ness
ish success,
of
beings
stopped," and points out the
United
in
engaged
It
demand —at
depression "is to sit on'the proceeding boom."
a
"the
in
cline
be dene when government moves
promptly with coordinated
efforts to combat a recession. Concludes, the best way to
prevent
back
faire and the beginning of the de¬
now
practical demonstration of what
a
too,
shall
man
minimum statement today.
it marked a historic turning
engaged in the dangerous experiment of attempting to control
the Economic Cycle. Holds depressions are
"man-made," and
can
"no
seems a
Editor and Publisher of "Business Week"
therefore
remember,
dark days when President Hoover
7
HARRY F. SMITH
President, Netvburgh Savings Bank
Newburgh, N. Y.
Financial Chronicle
The Commercial and
8
..
Thursday, October 13, 1955
.
(1520)
Israel Continental Oil
Old
Dealer-Broker Investment
Reeves
Laboratories—Analysis—Leason
Chicago 3, 111.
Ely
Cement
Riverside
Office
Atomic Fund
on
ment Securities
Co., Inc., 1033 Thirtieth Street,
Co.—New
—
Memorandum
Royal McBee Corporation
McBee
colors with portfolio informa¬
of June 30, 1955—Atomic Develop¬
as
Inc.,
Co.,
&
39
termining present value and dis¬
views—Lerner
&
Co.,
compounded an¬
dividing
by 1.5, the generally accepted pro¬
cedure in the oil industry in cal¬
culating present value on the basis
J.
nually for 20 years and
H. Hentz & Co., 60 Beaver
—
Annual report
York
5, N. Y.
business outlook, and
Co., a review of the current
analysis of Chrysler Corporation.
Developments—Bulletin—Gardiner, Annett
Limited, 330 Bay Street, Toronto 1, Ont., Canada.
Chemical & Pharmaceutical Industry—-Study—Smith, Barney
& Co., 14 Wall Street, New York 5, N. Y.
Company Diversification—Analysis with particular reference
to Arvin Industries, Carborundum, General Dynamics, Olin
Mathieson
Chemical, Phillips
Petroleum, and PullmanThomson & McKinnon, 11 Wall Street, New York 5, N. Y.
Also available is a report on Douglas Aircraft Company.
Convertibles
Recommendations on convertible bonds and
convertible preferreds—J. R. Williston & Co., 115 Broadway,
Canadian Financial
Secretary, Royal
of
New York 6,
fn
the
sions
f
same
of
Bank
Outlook,
Ltd.,
and
"Nomura's
Sumitomo
Chemical
Tokyo Electric
Over-the-Counter
Ltd.,
Co.,
Notes
NSTA
Index—Folder
Tokyo
an
used in
the National
Serlen
Barker
and
Petroleum
Quotation Bureau Averages, both as to
In
Canada—Analysis—Nesbitt,
'.y>
;
Points
19
1?
16
15
13
12
12
11
(Capt.), Jacobs, Barrett, Siegel, Yunker____—_.
(Capt.), Brown, Rappa, Seijas, Demaye
_________
(Capt.), Gold; Krumholz, Wechsler, Gersten
(Capt.), Bernberg, H. Murphy, Whiting, McGovan
(Capt.), Farrell, Clemence, Gronick, Flanagan
Smith
Bradley (Capt.); Cy-Murphy, Voccolli, Rogers, Hunter
"Growney (Capt.), Define; Alexander, Montague, Weseman
TopoP(Capt.), Eiger, Nieman, Weissman, Forbes, Klein
Leone Capt.), Gavin, Fitzpa trick, Valentine, Greenberg
Kaiser (Capt.), Kullman, Werkmeister, O'Connor, Strauss
Leinhardt (Capt.), Bies, Pollack, Kuehner, Fredericks
market
Refining
Traders
"Meyer (Capt.)j Corby, A. Frankel, Swenson, Dawson
performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.
'
yield
5 Point Club—Jack
Thomson
10
10
7
8
Manson.
and
Long
Term
from
page
Asahi
Chemical
•••
Industries
*
*
'
Bailey Selburn Oil &
—The
Gas
Ltd.—Detailed
Midland
Company
Toronto, Ont., Canada.
E.
W.
Bliss
Analysis
Limited,
50
in
King
brochure
Street,
West,
M.
S. Ilegarty
& Asso¬
ciates, Inc., 52 Broadway, New York 4, N. Y. Also available
is a brochure on IIoudaille-Hershey Corporation.
Canadian
120
Petrofina
Ltd.—Memorandum—McDonnell
&
Co.,
Broadway, New York 5, N. Y.
Products—Memorandum—Auchincloss, Parker &
Redpath, 52 Wall Street, New York 5, N. Y.
Chibougamau Mining Area—Circular—L.
Limited,
132
St. James
Street,
&
Com¬
West, Montreal,
Que.,
S. Jackson
Canada.
Chicago Corporation—Data—Bruns, Nordeman & Co., 52 Wall
Street, New York 5, N. Y. In the same bulletin are data on
Carborundum
Consolidated
mage
Company.
Edison
Co.
of
New
York—Memorandum—Tal-
Steel
Corporation—Bulletin—Gartley
&
Associates,
Inc.; 68 William Street, New York 5, N. Y.-
way,
Gas
Company—Analysis—Ernst & Co., 120. Broad¬
New York 5, N. Y.
General^Gas—Analysis—Ha Haupt & Co., Ill Broadway, New 1
Glens
for
production
future
of
and,
maturity date.
In practice, liquidation of the oil
payment usually takes place in
about
five
years,
depending of
therefore,
has
the
on
selection
no
company's careful
among
the
numerous
Juan
is
Exploration Company, which
familiar with
has in the past handled the
of
chases
producing
and
num¬
and
gas
basis
Mr.
for
initial
the
of
any property offered for purchase.
The company is consummating
purchases
fast
as
as
considerable
possible deals
years' experience in the oil busi¬
ness.
Holding a Masters Degree
oil
pur¬
The experience of San
Tyson provide the
payments.
Juan
with
oil and gas properties
purchase.
The company has been fortunate
in
obtaining the services of A.
Knox
Tyson, who has had 30
and
properties subject to reserved oil
available for
a
fore the first
properties
Over
50
considered be¬
one was
are
income
practical, but
care.
were
made. These
available at
well under 50%
total
screening
a
cost
of their ultimate
because of the own¬
er's desire to convert ordinary in¬
to
come
capital
gain,
perhaps
or
ber of years
the result of
porate liquidation or because funds
American
Falls
Insurance
Company—Analysis—The First Boston
Corporation, 100 Broadway, New York 5, N. Y.
Ileywood Wakefield Company—Analysis—May & Gannon, Inc.
140 Federal Street, Boston 10, Mass.
in
can
gift tax liability at all, or.
a valuation of 100, its
no
par
be
Thus,
value.
can
$20
certain
lating
of
and
V
already
6%
on
the
on
'*
accumu¬
of 5%
the rate
at
an.
value
share.
interest
debentures
possesses
ultimate
or more per
With
tax-free gift-
a
which
made
almost
the
pre¬
it is specifically provided
agreement that,
the
debenture
$3.75
of
payments
per
with Continental Oil
and was President of
Republics Corporation
are
needed
a
partnership
for
death
or cor¬
taxes
or
dividend
preferred
yearly
bined
thoroughly
producing
worked for
cost
to children or others
too
not
commence
long
This will afford a com¬
yield of 6% at the present
price of $88 and 514%
unit
even
for those
return
free
paying the full $100 par
is certainly a good
on such a relatively riskThis
value.
investment,
even
if the value
of the 10 shares of common,
auto¬
matically acquired at no additional
cost, is ignored completely, not to
mention
the
capital gain
stock
The
potential
handsome
^fforded bv the latter.
will
itself
not
be
traded
separately from the units
until November, 1956.
But, con-
•
sidering the nature of the assets
and earnings behind both the $75
debenture and the $25 share of
preferred, the whole package is
obviously worth a good bit more
right now by the most conserva¬
tive appraisal than $88 or even its';
$100 par.
from 1951 until 1954. His Board of
business
Directors,
incidentally,
includes
Ardray, Senior VicePresident of the Republic National
siderable additional income above
Joins L. A. Love Co.
Rushton
Street, Buffalo 5, N. Y. and 120 Broadway, New York
Equitable
the
lft
stock received;
common
after that.
Company
& Co., Ill Broadway, New York 6, N. Y.
5, N/Y.
Detroit
Instead,
oil payment is merely a claim
a specified
amount of dollars
in Geology, he
Corning City School District—Brochure—Municipal Securities
Dept., Marine Trust Company of Western New York, 235
Main
payment and has no lia¬
oil
bility in respect thereof.
course
Certain Teed
pany
the
at
the
And
tax.
at the most
should
The Security I Like Best
out
Company—Brochure—D.
of
free,
completely
turn be given
tive
current
analytical
This allows for the
of one's original
with each unit at no
with
and
be
the entire
if purchased at
unit
gains
shares
amount
the
debentures
year
:;i
issue of
"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd.,
6, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
—
the
will start Nov. 1, 1956 on de¬
bentures. And the $1.50 cumula¬
2
Ryan, Inc., 70 Pine Street, New York 5, N. Y.
*
capital
$5 to $6,
or
purposes,
investment
interest
Continued
Rates—Bulletin—Park,
Interest
But
now.
return
ultimate
in
Company, Limited, 355 St. James Street, W., Montreal,
Que., Canada.
Term
much
would
the
ferred,
and
Short
of
cost
Donadio
up-to-date com¬
com¬
reason.
to
preferred
Krisam
showing
tax
For
-'h
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
the
expected to
be
one-half,
is not out of
allocable
Manson
Co., Ltd.,
Gas
of
value
a
Association of New York, Inc. (STANY)
Bowling League Standing as of Oct.'6, 1955 are as follows:
Ltd.
Power Co.,
that
for an¬
liquidated
be
years,
hardly
can
command
Security
Chemical Industry Co.,
probably
and the oil
so,
not
five
another
$100 or less.
Investors Beacon" are
analyses of Mitsui
and
will
or
considering the relative certainty
of its ultimate minimum worth,
SECURITY TRADERS ASSOCIATION OF NEW YORK
discus¬
Rates, and analysis of Business Results and
issue
value"
be fully invested
payments
mon
results
the $10 million
other 18 months
for
it
"present
revenue,
for each common share.
will not
y
net
estimated
Since
an
N. Y.
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese-V.
S.
Taxation Conventions — Analysis — Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
an
of $11.50
—
Investment Opportunities in
future
in
Also available are data on Fairbanks, Morse
&
ington 7, D. C.
—
Stevens—Summary—Bache & Co., 36 Wall Street, New
P.
N. W., Wash¬
—
at 5%
counting
Post
10
2 Park Avenue, New York 16, N. Y.
Corporation,
using this as a basis of de¬
even
Street, New York 4, N. Y.
Atomic Reactor Diagram in four
tion
strong likelihood of additional in¬
as
pointed out above. But
come
Square, Boston 9, Mass.
Royal Dutch
booklet—Harris, Upham & Co.,
Broadway, New York 5, N. Y.
Atomic Energy Review—Now
120
And this is on the con¬
servative
side in
view
of the
South La Salle Street,
to
of
even
options.
Co.—Memorandum—Rauscher, Pierce &
Gas
to each
after
management's stock
stock,
common
exercise
Corp.,
Investing
Co., Mercantile Bank Building, Dallas 1, Texas.
understood that the firms mentioned will he pleased
send interested parties the following literature:
is
share of
Y.
Street, New York 5, N. Y.
Natural
Pioneer
minimum of $25 cash flow
Limited—Bulletin—Englander
Co.—Report—General
Copper
Hickory
80 Wall
Recommendations & Literature
It
Company
Co., 115 Broadway, New York 6, N.
&
the
necessarily conservative esti¬
(Special to The Financial Chkonicle)
L.
Dallas; Alfred S. Foote,
Vice-President o* J. P. Morgan &
Bank
Co.;
of
U.
Dresser
N. Mallon, President of
Industries, Inc., and Phil¬
lip Kraft, Vice-President- of.Newmont
Mining ^Corporation
and
President of Newmount Oil Com¬
The
the
mates
of
tually
company
services
petroleum
of
has also retained
a
well known
engineering
firm, San
fact, con¬
In
*
often
«
reserves is ac¬
MENLO PARK, Calif.—Harold ;
realized because of
G. Jindrich has joined the staff of r
improving recovery
Louis A. Love Co.
■
:
methods and the automatic acqui¬
present
constantly
sition of
tions,
as
of
yet undeveloped por¬
acreage
and
untested
deeper horizons on the developed
UNITED STATES
acreage.
After
pany.
purposes.
ments
deduction
and
of
all
oil pay¬
LITHIUM CORP.
operating- expenses,
and
debentures
and
retirement of the
and
preferred, there should be a
EMPIRE PETROLEUM
CO., INC.
DEPENDABLE MARKETS
(a Colorado Corporation)are
as
believed
"SPECIAL
to
merit
attention
SITUATIONS" with
UNUSUAL GROWTH POTENTIALS.
ask
YOUR
broker.
Julius Maier Co., inc.
15
Exchange Place, Jersey City 2, N. J.
BOwling Green
DEMPSEY-TEGELER & CO.
9-4058
HEnderscn 5-1300
Teletype JCY 798
Number 5472
182
Volume
.
The Commercial and Financial Chronicle
.
.
(1521)
attempt to do the things which it
The NASD; What Ii Is and Does
required
was
to
the
framework of the Act under which
its creation
By GEORGE E. RIEBER*
It is
Secretary, New York Regional Office
the members of the
profession, it¬
self.
those
Committeemen
permitted.
was
democratically organized
a
necessary to appoint an "Execu¬
tive
Director," who has all the
duties of a president of a corpora¬
tion,
within
do
and
which
Mr. Rieber recounts
the conditions
securities market that led to the passage
,
NASD is the
that have
its
organization. Comments
on
By-Laws
of
that
the
profession itself.
the Association
the
policy-forming
administrative
shall be vested in
a
of 21 men,
ernors
from
elected
description of
a
presided
and
Points out the
only national association of securities dealers
qualified under the Act and gives
of
the
provide
of the Maloney Act,
Sect. 15-A of the Securities Exchange Act.
now
Its prime movers are
The
Over-the-Counter
the
in
powers
Board of Gov¬
all of whom
the
are
investment
fra¬
ternity, all of whom serve without
pay, and give unstintingly of their
time and efforts to the promotion
the "5% policy" and the polic¬
ing of Mutual Funds and of securities dealers' advertisements.
think
I
the
best
to
approach
subject of the National Asso¬
ciation of Securities Dealers would
be
to
we
did not
the time when
back to
go
the
why
which had
neces¬
in
public
By-Laws
the
with
inter¬
In
est.
The
think I
can
back
to,
haps,
time
markets
not
the
Rieber
It
at which time also
growing interest
in
Over-the-Counter securities.
and
regularly
As is well known, the
Exchanges had been
functioning for some time and had
been developing a system for dis¬
organized
cipline of their own members for
malfeasance or for any departure
It
rules
the
was
the
of
simple
proposition, because when a mem¬
becomes
ber
of
member of one
a
the Exchanges,
he practically signs
away any private privileges which
he may have. He relinquishes all
right to appeal from
the
of
Board
decision of
a
of those
Governors
it isn't neces¬
sary for them to indulge in long
procedures in order to discipline
and
Exchanges
so
of their members who have
any
strayed.
That| wasn't true in the Overthe-Counter
Market
The' Over-
Market.
the
was
vast,
a
sprawling organization which, in¬
has
cidentally
far
so
1550.
been
is the
It
the
in
market
country.
The
about
'I"'
.
Exchanges
and
organized
al¬
were
had
their
members under their hands. There
difficulty
no
was
Market,
in
watching
Over-the-Counter
The
them.
other hand,
the
on
was
spread all over the United States
and it was difficult to watch the
actions of dealers in it.
1933
codes
when the various
promulgated,
were
vestment
securities
NRA
the
business
in¬
was
invited to construct one of its own
for the
In
For
time
that
there
was
a
large and earnest group of mem¬
bers of the securities business who
been
working
for
years
to
bring about order in all of these
markets. " There was no question
their
about
desire
to
discipline
the securities market for their
own
good and for the good of the pub¬
lic. And so, although there might
have been some objection to the
methods by
were
of
which the NRA codes
imposed upon various types
business, the securities business
welcomed with open arms the op¬
portunity to have
First
The
Step
an
NRA code.
in Organization
few
codes
fied
themselves
all
were
nulli¬
by action of the United States
♦An
address
Graduate
tion
that within
thereafter the NRA
years
rf
by Mr. Rieber hpfnr* the
School
New
Bankers
a
York
New
voluminous
so
is
itself
that
sub¬
com¬
to
do
the profession
this
of
some
special
work.
As you
probably know, this dis¬
trict is the largest one in
States, with the exception of
Each
corpora¬
is
of volunteers from
14,
No.
the
of
work
mittees and to seek the assistance
the
coun¬
try, and administers the affairs of
Connecticut.
districts
those
of
one
is
the
Association
in
States
the
Continued
presided over by a District Com¬
Con¬
on
of
page
23
MANUFACTURERS
DIRECTORS
BARNEY
of
Yo»-ir
Business
Administra¬
University,
New
City, Sept. 8, 195S.
until
confronted.
was
EDWIN
"
ties Act of 1933 and the later
Act,
as the Securities and
Ex¬
York
COMPANY'
TRUST
J. BEINECKE
CLINTON
R.
Head Office: 55 Broad Street, New York
BLACK, JR.
President, C. R. Black, Jr. Corporation
ALVIN
There
is
the Se¬
curities and Exchange Commission
did an excellent
job. It was a new
field.
They had
to
explore
their
possibilities and their powers, and
it must be said that there
was no
question about their success.
However, they
with
a
very
Whereas it
was
LOU
CHARLES
HORACE
serious difficulty.
possible for them
supervise
JOHN
So
M.
*
Exchange
in
order
Commission's
V
'
•'
RESOURCES
A:
*
791,030,757.93
S.
Insured
Government
758,495,910.57
.......
F.
H.
A.
73,263,731.91
193,958,135.06
4,511,700.00
Stock of Federal Reserve Bank
Other Securities
•
Senior Vice President
Bills
Loans,
Purchased
and
Director, Phillips Petroleum Company
JOHNSTON
S/mpjon Thacher & Bartlett
38,031,612.89
Bankers'
L. JOHNSTON
OSWALD L.
which they felt
difficulty.
much
S. Government Securities
State, Municipal and Public Securities
HOOPER
JOHN
so
$
Banks
Mortgages
GERLI
EUGENE S.
U.
U.
GEMMELL, JR.
powers,
that they might be able to
do the
job with which they were con¬
they had
<
President, Cerli & Co., Inc.
representations were
the
Congress
of
the
United States for the
enlargement
of
the
Securities and
Condition, September 30, 1955
FRANKLIN
PAOLINO
some
to
Statement of
FLANIGAN
Clyde Estates
thing
Over-the-Coun¬
C.
President, United States Lines Company
JOHN
ter Market.
made
YORK
DANA
Cash and Due from
difficulty,
very difficult
the
A.
President
confronted
were
almost without
a
NEW
Chairman, Dana Corporation
the Exchanges and place
hands upon the source of
their
GREATER
IN
R. CRANDALL
President, George A. Fuller Company
enter
trouble
OFFICES
112
BRUSH
Corporation-
doubt, that
no
G.
Chairman, American Home Products
change Act of 1934.
to
A
Chairman, The Sperry and Hutchinson Co.
known
to
5
BALABAN
,President, Paramount Pictures Corporation
pur¬
992,177,249.88
Acceptances
27,968,057.00
Mortgages
18,125,966.43
Banking Houses
There
were
some
conferences
this problem, all of which were
conducted in
a
friendly
on
Customers'
BARRY T. LEITHEAD
President, Cluett, Peabody & Co. Inc.
spirit.
They
of
were
the
who
participated
in
by all
and organizations
interested in the se¬
business
States,
and
came
what
is
out
in
the
confer¬
of America
JOHN
suggestion that per¬
haps the business could undertake
known
as
an
self-government
cipline.
experiment
and
result of those
T. MADDEN
JOHN
P. MAGUIRE
President, John P. Maguire & Co., Inc.
george v.
Mclaughlin
Vice Chairman,
conferences,
Triborough Bridge and
sponsored
legislation
eventually became known
Maloney Act. Its official
Section
and
15-A
of
the
which
as
Association
Dealers.
It
also
of
WILLIAM
HAROLD
states
the
basis
be formed, what their
pow¬
ers shall
be, and what their limi¬
tations shall be.
The National Association of Se¬
Dealers
ganization which
to
this
It
is
only or¬
qualified under
15-A of the 1934 Act, and
day is the only one.
It
had
its
start
HAROLD
ile
which
ago-.
I
Undivided Profits
.
.
$
45,281,586.54
195,67.1,586.54
RABE
V.
RICHARD
City
Reserves for Taxes,
Dividend
23,143,753.70
-
Payable October
15,
1955
.
Liability
as
Endorser
on
2,015,600.00
19,700,265.76
Outstanding Acceptances
and
SMITH
Unearned Discount,
Interest, etc
Acceptances
15,515,777.1 T
Foreign Bills
Other Liabilities
1,589,465.55
.....
Chairman, The Home Insurance Company
L.
A. VAN
BOMEL
2,667,938,507.26
Deposits
Chairman, National Dairy Products
$2,925,574,955.92
Corporation
HENRY C.
mentioned
It has made
a
a
little
valiant
VON
ELM
Honorary Chairman
GEORGE
on
Aug. 1,
by the ab¬
sorption of all of the members of
the Investment Bankers
Confer¬
ee,
100,000,000.00
Surplus
the
began to function
1939.
C.
New York
shall
curities
G.
Securities
which any such Associations
upon
PATTERSON
Chairman, Trust Committee
That
amendment sets down the author¬
ity for the creation of The Na¬
tional
J.
President, Scranton & Lehigh Coal Co.
is
Securities
Exchange Act of 1934.
GEORGE
the
title
(2,519,500
shares—$20.par) $ 50,390,000.00
Capital
Tunnel Authority
too, Senator Maloney of Connecti¬
cut
LIABILITIES
>
President, Emigrant Industrial Savings Bank
self-dis¬
The Maloney Act.
a
$2,925,574,955.92
President, United Biscuit Company
a
in
8,867,779.65
Accrued Interest and Other Resources 4
United
those
of
19,144,054.60
for Acceptances
Liability
F. MocLELLAN
KENNETH
persons
were
curities
Section
Of course, we know
a
of
District
Others,
smaller,
necessary for them to
divide themselves into other
which consists, of all the New Eng¬
of administering the Securi¬
pose
As
had
Directors
of
Consequently, they found it
it
of administra¬
States of Washington and Oregon,
to
Committee
12
men.
districts are
Committee
tion, the country has been divided
14 districts, beginning with
District
No.
1, comprising
the
ranging
District
a
varies in between.
into
and
districts, the larger
require only six, and the number
as¬
Organizations
convenience
his
of him.
required
of
the
of
Confer¬
meantime, in 1933 the
Securities and Exchange Commis¬
sion had been created for the
operation of the securities
to
tion.
where
The
District
the
business.
Prior
Bankers
1939, and I
hesitancy to say it did a
job, within the limitations
ences
In
perceive that the Board
of Governors is tantamount to the
Board
consisting
assists
performing the duties
The
land
fronted, and with
this
market in
- --
Stock
ready
since
oldest and largest
world,, and is cer¬
the largest
tainly
existence
in
know,
we
as
securities
as¬
sistance.
You will
which
staff
is
have
ones,
signed to him.
the Association with¬
professional
executive
him in
country to administer
kind of
some
which
Some of the
has
Director,
portion
of the Associa¬
no
they found it
Counter
the
of
Investment
good
with which it
Exchange.
comparatively
a
all
functioned
have
was
from
Constitution, a set of
a
set of principles
a
and
regulation.
E.
George
larly well reg¬
there
Conference,
out
Executive
that
the work
securities business attempted self-
were
particu¬
ulated,
the
ference, therefore, became a vol¬
untary organization, wherein the
at
securities
the
They
as
Association has established
the
ton,
Naturally, it would be a diffi¬
cult thing for 21 men selected from
the affairs of
to
tion
principal office at Washington,
D. C., where Mr. Wallace H. Ful¬
ciation of Securities Dealers.
all over the
devotes
and
time
Chairman.
a
District
without pay
serves
agreed to abide.
That
per¬
which
known
Bankers
which
ence
go
1927,
code.
NRA
was
Investment
the
I
this
into
coun¬
by
over
of
one
dealers which became members of
order
do
to
order
getting
the
of
Investment
ganization be¬
sary
in
the securities markets in the
organized what
or¬
came
were
interested
features
reasons
our
same
try, decided that they would like
to keep, if they could, the best
ex¬
ist, and devel¬
op
this
who
Court,
of
group
but
individuals
Supreme
policies
Each
a
of the work of the National Asso¬
the
the
laid down by the Board
Governors
which in
turn
is
members
of
executes
mittee, which is also selected from
are
Association.
National Association of Securities Dealers
9
United States Government and Other Securities carried at
secure
$143,460,867.69
public funds and trust deposits and for other purposes as required or
are
pledged
to
permitted by laws
G. WALKER
President, Electric Bond and Share Co.
Member Federal Reserve System
Member New York
Clearing House Association
Member Federal Deposit Insurance
Corporation
..A
The Commercial and Financial
10
mercy of arbitrary and unpredict¬
able forces in the money market.
Administration's Home Credit
When money was easy
The
to get, re¬
Unwarranted!
Restriction Program
HON. ALBERT RAINS*
By
cure
of House Banking and Currency
Chairman
Subcommittee
to five years was
no
problem.
But if a mortgage
expired at a time when money
was hard to
get, it might be im¬
renewal
a
would
Housing
on
It
wonder
no
in
and
times
time's
need
I
not
re¬
mind you
that
we
what
in
now
are
appears
to be the sev¬
enth
consecu¬
tive
year
which
in
more
million
than 1
In the
have
in
Albert
Rains
in
that
we
In financial
terms
human
relatively
a
have
terms
so
come
the
toward
every
individual
and
secu¬
.
look back to our last big
has changed
We
home
then
had
building
such it
That
big
a
was
and
boom
a
collapsed.
of
Some
you
non-farm
of
which"
foreclosures
mortgage
1932 reached
the
recall
may
number
incredible
in
the appalling figure
of
Congressman
Rains
meeting of the National
Association
Builders, Oct. 2, 1955.
at
of
well
impor¬
of the
more
being
family is the fact that
reality to most American families
when
they need it most, to bring
the
up
family,
simply
not
as
a
place to retire when the children
have grown up.
Measures
in
Aid
of
Home
of
Housing
on
the
Banking and Cur¬
on
of the House of Represen¬
to accumulate as much
rency
tatives is
the person who
home. Up to 1932
buyers had to
make a down payment of at least
25% of the appraised value of the
made
today's
The
facing
prospective
this mortgage
home
sources
lending
of
loans and
ers
and
have
would
a
ma¬
sometimes
ally
was
If
less.
a
was necessary, as
and-
count
amounted
the
Federal
gage
15
Interest
of
have
the
the second mort¬
on
would be 8%
The borrower
may
20%
or
Dis¬
more.
was
always at the
tion
ers
to
outlets
home
save
own¬
foreclosures
The
1933,
the
following
set
year
Housing Administra¬
created
to protect lend¬
against loss and to enable mil¬
was
continuous
a
Explains and
All
these
ments
a
be
necessary
to
completed and
be
the
containing all
up
documents
shipped
to
ele¬
many
have
package made
these
~
permanent
to
final form
in
others
with 'several
This
investor.
all may
take, depending upon the
activity in the
particular area,
home
for
loan
program
GI's.
in detail to dis¬
cuss the many worthwhile
legisla¬
tive programs which have helped
to
on
go
achieve
record made
the
remarkable
by the home-building
■•■•'''
'
'
^
edge.
Aircraft
Corporation
and its
1, 1955
may
of
October 13,19551 at the
following
on or
after '.
locations:
of the
blood
,
-Corporate Trust Department
,21$
.
P.O. Box 3546,
'
morning with some
the current setting
setting the prob¬
terms
—
of
credit
and
unquestionably the life
your
industry.
share
your
be
In
done
recent
that
will;
sibilities
York
the
has
over
re¬
Corporation
present
apparently
though to many the
warning clouds in view are hardly
as big as the proverbial man's fist
—
taken
a
series of steps
As
seems
economic
.
to be fashionable among
planners,
building industry
the
was
Continued
horne^
singled out
the
will
the
become
underwriters
all of which are re¬
originators
margin,
on
page
27
for
up
that
which
and
bank, the documents
particular loan against
a
had
it
purchase at
commitment
a
to
future date, and the
a
commercial bank carried that loan
delivery
and
Loans
are
usually
-
which
amount
payment
this
of
is
was
particular
in
made
based
an
the
commitment of the permanent in¬
upon
In other words,
vestor.
if the com¬
the loan will
par or with,a slight
exactly the same purpose in con¬
margin. If the commitment is less
nection with origination, sale, and
than par, the loan in turn will be
distribution
of mortgage invest¬
made at that figure or again with
ments to the permanent investor.
a slight margin. In my many years
There are several different types of
experience in this type of fD
of such mortgage inventory loans.
nancing, I think it would be very
ferred
to
The
loans
inventory
type
original
They
serve
mitment
be
committed
of
know
situa¬
default
a
originator
In
definite commitment to purchase
at
future date
a
and
conditions
be
met
in the in¬
have
to
terval before the transaction un¬
der the commitment is completed.
It
is
originator in the first instance to
close the mortgage loan- and have
the credit of the owner of the
property approved by the perma¬
nent
investor.
The
documents
to
loan,
the
deed
or
such as the
of trust, have
There
recorded.
be
of
to
had
never
by
will
be
a
committing
a
a
brief, the
purpose
pur¬
of this type
mortgage inventory loan is to
flow
even
intos the
gages
vide mortgage
with
a
builders
to
originating
the
pro¬
compa¬
revolving fund
with
the
of
and
they in turn locally
mort¬
of
portfolio
committing investor
the mortgage nies
for
necessary
securing
the Committee
have
we
There facilitate the
mortgages.
factors
many
which
determined dol¬
a
of
amount
are
par,
chaser.
out
mortgage
a
at
at
that
financial institution
arose
a
is
made
probably interesting for
was
called
been
has
lines.
loans.
inventory
as
Mortgage
that
so
provide"
can
funds
to
plan,
construct, and produce housing.
Out of
in
this
gage
our
type
loan
favorable experience
committed mort¬
of
the time
at
the
corn-
period of time elapse between the developed another type of financ¬
actual delivery of that document ing which in my opinion has been
the
to
time
recording
the
that
of the title also re¬
ready to put in the pack¬
VA
The
Guarantee
insurance,
longer
that
to
lapse of some time before
a
is
it
counsel's opinion as to
or
validity
quires
the
and
by
originator. The title
the mortgage
policy
office
is returned
it
that
usually
intervals
has
been
of
or
the
requires
time
before
completed and re¬
the contributing factor to sustain¬
ing the building industry, the
ation
an
in
of mortgage
cre¬
investments in
orderly and marketable fashion
this
and
country,
possible at
a
conceded that there
shortage,
it
make
to
making
it
time when everyone
was
possible
a
housing
housing
create
and
for /qualified
American citizens to become home
owners.
turned to the mortgage originator.
The
fire
many
insurance
policies
documents
other
also
and
re¬
This
type
Rains
;ency,
of
Mr;
Sub-Committee
Committee
New
York
on
Scully
before
the
Housing of the
Banking and Cur-
transaction
warehousing.
from the method of
scribed
♦Statement
of
commonly referred to
mitted
form.
House
on
many
funds
in
being
securing
for
are
prepared
quire some time to be put in final
,
have
tie
can
of the
companies
they
several
months
great
originating
not
until
FHA
inflation pos¬
to restrict credit.
Because
concern
which
months
restive
—and has
Burbank, California
liberal
strict the necessary flow of credit
to your industry.'
grown
Corporate Trust Department
Lockheed Aircraft
the stage.
on
do
investors in such se¬
made.
curities
to
carry
this inventory
type
for different periods of time loi
age.
COMPANY
46 Wall Street, New York 15, New
availability
has again
credit
Administration
TRUST
and
Recent Credit Restrictions
Terminal Annex, Los Angeles 54, California
who
stitutions
mortgage
j
to the center of
this I
West Sixth Street
BANKERS
conclude my
to
on
mortgage
nothing
•
this
terms—is
of
SECURITY-FIRST NATIONAL BANK OF LOS ANGELES
programs
problems.
Credit
temporary Debenture Certificates
be exchangedfor definitive Debentures
these
plan
In the current
moved
The above-described
I
observations
lem
May
So
remarks
3.75% Subordinated Debentures
Dated
know
you
intimately from first-hand knowl¬
a
mortgage
permanent
lar
could
I
.
that
commercial
which
and
orderly distribution to the public
and to
financial investment in¬
given
guaranteed
as
issues
a
the
knowledge
in the mortgage busi¬
anyone
ness
.
has
had
we
mortgage inven¬
to
carrying these mortgages until
the package is ready for delivery
tory loans.
to and purchase by the ultimate
The basis of this suggestion is
investor.
Therefore, the original
because it is common practice in
committed
mortgage
inventory
banking circles to refer to loans
loan was devised under which the
as
inventory loans, those which
are made
against bond and other mortgage originator pledged to a
ment.
But
Lockheed
•
them
refer to
term, low interest and low down
payments insured by the govern¬
1944
to
more
a
where
in
it
time
idea
descriptive termi¬
nology for these loans and I sug¬
gest that from here on out, we
adopt
tion
And
this
at
excellent
an
what
industry.
•'
be
lions of average Americans to buy
homes at sound values on long-
you
This advertisement appears only as a matter
of record
secure
Home Owners Loan Corp. was
it
usu¬
funds
lending institutions from
in
broker.
commission
to
To
through
up
incomes, the purchaser, would ob¬
tain one by paying a discount to
the lender and in addition perhaps
commission to the
losses
second
for families of moderate
pro¬
organizations
reserve
afford
to
savings.
loan
Bank
help meet local demands for home
for
mortgage
a
vide
with
the borrower would
The
possible.
Loan
created in 1932 to
was
anywhere from 6 to 8% inter¬
but
Home
all
are
programs
Federal
system
builders
home
as
believe
I
would
underwritten
most
Home
•
committee
Committee
security
Ownership
wants to buy a
loan.
♦Remarks
purposes
loans.
even
today a family can get a home
early in life.
The home today has become a
turity of three, four or five years
just ended
the
to
completely be¬
more
,
perhaps
of
Picture
Housing
But
of the measures which have
est.
boom, the highly
boom of the "roaring
twenties."
understanding that one
of the hearings
being conducted by the Sub¬
the
home
You
pay
a
building
speculative
today's
loans
aware
trend
of
25 years ago.
some
down
home
the con¬
ditions
present program
our
culmination
started
low
to
rity which the very, fact of in¬
creasing home ownership affords. property. A first mortgage would
In order to appreciate the pres¬ probably be limited to half or twothirds of the appraised value. On
ent building
program,
we must
the
With
aspect of the housing picture
No
immeasurable benefits to individ¬
flourish, for
ago.
ownership
20-odd years
/.p.;";;
payments and
life
population
the
of
Change in the
period
short
far
tion
tween 1932 and 1955 than
of
ual freedom
home
some
absolute essential to
an
It is my
of
now
American
A great propor¬
homes.
own
family's
dream, home ownership. In terms
of history, I like to think of the
realization
for
only
these
tant
have been
I
impressed by the fact
constantly
existed
that
buyers
purchase
the
consider
their
middle
until
wait
to
home
Most
sources.
could
it would be almost impossible to merely dream about homes be¬
fully appraise the impetus of this cause the financial prospects of
were
too remote for
vast construction program to our ownership
entire economy in the past decade. any serious consideration.
But in
conditions
of renewals.
even
the
State's.
United
1928.
believe
to
loans.
upholds the commercial bank's role in the mortgage and home
"
building industry.
*
y
four
light of today's situation,
hard
is
facility of this kind is
orderly economic operation of creating homes.
This
was
mis¬
a
Explains the need for such loans and their types, and asserts
"a
tnree
1951.
calling mortgage warehouse loans
they be termed mortgage inventory
suggests
nomer,
at
stands
had
been
started
it
long-term
vate
homes
new
in
large as in
as
mortgage guarantee programs and
credit was available only at pri¬
of
citizens.
our
number
tnan
standing mortgage debt
or
City
information as possible from many
buyer knows
where he different sources on
thq methods, from a month to five or six months
for he. has an amortized
limping along for several,
functions,
purposes,
objectives to complete. The documents are
years
and in
1933 dropped to loan on which both payments of and
terms
of
collateral
loans then forwarded to the investor,
and interest — and in made
93,000.
The non-farm high had principal
against the security of mort¬ examined by their counsel, and if
been reached in 1925 when 937,000 many cases also taxes and insur-.
gages
on
individual
residential found in order, payment for the
new dwellings were started.
This ance—are made monthly during
properties.
The many different mortgage is then made under the
figure was not touched again for the life of the loan. These pay¬
types of such loans have, through original commitment.
ments are geared to the buyer's
24 years.
common usage and custom in the
income. And the buyer is not bur¬
During this first major building
trade,
been generally classified Why Mortgage Inventory Loans?
dened with the periodical worry
flourish, there were no federal
I think it is common
and referred to as warehousing
stability
millions
to
the
been
bring progress
and
1£23
despite the fact that in 1951 out¬
1951, or one out of every 2,500
dwelling units.
Residential construction had
ing has helped
New York banker,
record
a
in
88,000— more
in
1
do-
so
250,000,
of
was
Even
taled
about one out of
every
100 dwelling units.
This
here
compares with the extremely low
industry which in recent years has
rate of about 18,000 foreclosures
made such unprecedented progress
great pleasure to be
with the representatives of an
It gives me
SCULLY*
York
New
that this
then
the peak of the boom, foreclosures,
under such insecure financing, to¬
thoroughly studied by his committee.
istration's actions will be
J.
JOHN
ensue.
is
foreclosures.
of
ownership. Reveals Admin¬
of thousands of families for home
j
as
Thursday, October 13, 1955
.
Vice-President, The Chase Manhattan Bank
foreclosure
and
boom of the twenties
discussing the developments in en¬
couraging home ownership through government aids, attacks
the recent mortgage credit restrictions on FHA and GI loans.
Says these steps may have a seriously disruptive effect on the
home-building industry, and they have punctured the dreams
Congressman Rains, after
f
By
possible for the homeowner to se¬
from Alabama
Congressman
S.
U.
-
.
.
^Warehousing"
Of Mortgage Loans
newal every one
is
Chronicle
(1522)
There
is
above
no
in
was
as non-com¬
It
differs
financing de¬
these
respects.
commitment
for
the
on
City,
Oct. 6,
1955.
Continued
on
page
29
Volume
182
Number 5472
.
...
The Commercial and Financial Chronicle
concentrated
.
Housing Industry Stands
in
close
or
large .metropolitan
;
communities,
At the Crossroads
central
FNMA could
cility.
It maintains a fictitious
price practice in its selling meth-
ceive
from
ods.
Rural
the
In
tracing the
j
:
of homes during the last
decade, Mr. Coogan says we are now facing a period where
our
production has reached unusually high proportions chiefly
:
rising production
.because of the
straint
easy money
will
actions
1956.
with
national emergency.
advisory board from various
rounded
■
there is over-building, there is also
housing shortage. Advocates
mortgage problems,
as
the
•
a
and
will
all
plans
be
financing
housing problem has
Central Mortgage Bank Proposed
acting in cooperation with FHA,* VA and the Treasury.
The
solution
for
these
three
FNMA
six
a
should
,
.
I have
ate
.uation
it
as
o
i
tne
operation of
FNMA
a n d
and
to
prove
Before
I
Those-
ure
to realize
thit
rp<?nlt
Mr/
of
ten
"1 homas
of rising
P.
Coogan
i^ustry
crossroads in its progress. In
remarkably
shortages
n^ytn^i^emafe„1^
^has trained skilled
developed
has
craftsmen,
mass
Chairman
or
the
postwar
housing emergency of this coun¬
try. Since 1950 housing has been
devoted to upgrading families al¬
ready housed and producing bet¬
ter,
more
modern
living
ac¬
commodations
Also
have
the
the
,
the
nine
of almost cc*ual dignity to be the
marketed helter-skelter on the fi-
to
action
the
and
nancial system.
housing
vou
'
understand
.
.
,
.
.
,
.
forces
^be
either
builder
the
to
home
buy
3
buyer
points
a
as we are lacea witn
a
over
_
building
time, with
aSeof
a
and
at
the
same
pays
serious housing short- mitments
except
in
its
of
all
devices,
existing
our
production
is
buying
above FNJVIA
The
new
pletely
•
it
0f
or
w
com-
the
i t h
the
In the last few
the
the
This announcement is neither
an
ment
and
the
low
income, rural
minority groups
long been de-
when
term
pjjecl
used
that
these
in
Not
a
nied-would again be eligible for
p
t
pvnpripnrp
of the
misunderstand
.
si
a
has
le
use
that
of
facing
now
period where
a
financiai
all
'
Before
control
any
was
'guaranteed
available
mortgage
until
that FHA
t?nma
has
and VA
loans,
while offering servicing probproven
some areas, are still
when
handled
by
a
prof-
tion,
in
large
order
to
commitment to buy
investment
an
Sales
have
since
the
been
spring
and
institution
Price $42^4
a
any
of these Shares.
.
Share
projects are being cut back.
Before
this natural curtailment
was
evident, the active restraint
many
the" Federal Reserve
to further impede
housing production. Then followed
a
series of events which created
of
policy
Board
the
began
absolute
Copies of the Prospectus
may
these Hhares
he obtained from only such of the undersigned
in
compliance with the securities laws
as may
legally offer
respective
cut-off of mortgage
These included
a
questionnaires to banks
on
their mortgage activities, the
credit curbs imposed by FHA and
warehousing.
series
of
finally the Home Loan
Bank's
curtailment of credit to
the Savings and Loan Institutions.
These actions will seriously retard
VA,
opment
effect
stage,
on
developer is
production
every
builder and
operating on finan¬
cial
commitments
1954
or
to
will have no
but
the housing
THE FIRST BOSTON CORPORATION
GOLDMAN, SACHS & CO.
BLYTH & CO., INC.
HARRIMAN RIPLEY & CO.
LEHMAN BROTHERS
Incorporated
SMITH, BARNEY & CO.
F. S. MOSELEY & CO.
GLORE, FORGAN & CO.
1955.
Practically
■
CLARK, DODGE & CO.
and
housing production in 1956, which
is now in the planning and devel¬
of
MORGAN STANLEY & CO.
issued
in
KIDDER, PEABODY & CO.
late
It is my be¬
culminative effect
MERRILL LYNCH, PIERCE, FENNER & BEANE
STONE & WEBSTER SECURITIES CORPORATION
early 1955 and not subject
current controls.
lief
that
the
of the credit actions,
♦Statement
Rains
House
rency,
by
Mr.
Sub-Committee
Committee
on
UNION SECURITIES CORPORATION
coupled with
Coogan before the
Housing of the
Banking and Cur¬
on
New York City, Oct. 6, 1955.
October 7, 1055.
WHITE, WELD & CO.
firm
must
a^ree in wntin2 to huy the loans
on houses not yet built, sold to
buyers not yet tound, for delivery
in a period of 9 to 12 months from
Continued on page 27
($12.50 Par Value)
now
a
...
Common Stock
volume of houses.
slowing steadily
early
In addi-
the mortgages,
1955, due to the inability
to sell this huge
actually
secure
be a slow-down
there would
that
later in
it
has been
of money must be spent.
v
nor a solicitation of an offer to buy
offer is made only by the Prospectus.
tempted, it was apparent to those
of us close to the national picture
is
the land
American Can Company
at¬
word,
cases
devefop.
our
of 1954.
other devices
an-
transaction
the one-for-one program and
by
been
this
in
Home Loan Bank System.
production has reached unusually
high proportions chiefly because
of the easy money policy assisted
for
the
manner
392,000 Shares
namely, the FHA and VA and the
We are
loans
As a prologue, it is necessary to
explain that in a housing
ment
or
project
no
insured or
ijiujcci,
nu
uisurea
\
developed
•
and apparently manv people
.
nf
New Issue
successful financing de¬
in
Congress,
very
vices
of
we
Unfortunately,
this
great part this was due to
a
vears
collateral
as
loans.
"warehousing"
because
home ownership.
offer to sell
The
im-
eyes
I]general apprecS-
fact
country
short-term
an
.
FNMA should be
coordinated
itable
*
at
prices.
in
Treasury, FHA and VA operating ;bought, utilities and streets inin close touch with the housing stalled, the house constructed, the
market and provide that an even building inspected
by the FHA or
flow of money be maintained, curb VA, the buyer's credit reviewed
excesses
and avoid slumps in by FHA and VA, a final certifihousing production.
Under this cate of the house and approval of
method, low rental housing would the buyer issued by the
agency.
a^ain
be
possible,
rapid
steps it is easy to see that until the
could be made in clearing our insured or guaranteed mortgage is
slums and in urban re-develop- actually in existence, large sums
lems in
"
s
gradually
loans
As a result they have been
accepted bv the commercial banks
the
permit investment institutions the
widest latitude in
to dis-
Over the
lateral
WUUIQ
WHICH
|JI ICC
of
oermit investment inctitntmno the
com-
as
for
Chair-
me
p00d securities and crime col-
are
erate discount pride which would ;is
VtlOVrVIUll Kj
UVO
and
mortgages
market
communities and
special
tion
insured and guaranteed mortgages
could be maintained at some mod-
improved the liquidity of insured
guaranteed
steady
Mr.
asked
have
have received
—those all having
Under the present methods function classification. It has not
operation
and
even
of
receive.
is unable to provide advance
bankers
fee and its buy-
ing policy should be such that
we
guaranteed
mortgages for any of its stockholders—a rediscount facility on
thebasis. of fullrecourse. It should
be in a position to issue available
commitments at
subject,
you
warehousing.
proved the status of insured and
should
FNMA
new
was
year's,
authority to rediscount
or
o^a dilemma ^we a^faced wdth s^oc't for u®ua"5' stock which he
dfle^ma
~
but does not
It
CL1SS)
,
.
other
which
American
the
for
people.
In
of dollars of guaran-
teed insured mortgage instruments
The
man,
debentures against its portfolio
of mortgages.
necessary
cured
completely
■'
issued in such a way as to
have an assured market, permits
sec-
the
to
recourse
cases
buy stock in the corporation as a
privilege of doing business and it
should be authorized to issue notes
care-
'
techniques, designed financing
progressively better housing and
production
its
of the
At this time, I wisn to point out
_
lties, the honsina' inaustry stands ot
housing
sianas
a
in
that
see
in accord with
wrui
...
monetary policy and always
and
It is imnortant that
.
a
six
„
the fail-
part
between
exists
to
are
.
VV Oil-
FNMA, as now constituted, is
that' not the Ccntral
Bank
this same lag will be evident when that it should be.
It is the cause
it i« neepssarv to modifv the credit
of tke mortgage. market being
terms
lowered by a point or more. It
industrv
con¬
p r o duction,
pro auction,
at
lone
bv
the
on
this
lag'
months
sum¬
After
having
us
Government
today.
years
of
\SJL
VV
„
pains
been"■disturbed
wavs
a
as
^
treasury bonds
close interest in housing have al-
would
give
ditions
deferred until
HeferreH until
Lag Between Action and Results
its
of
mary
"be
he
^
„
going
slight
feel
_
cial climate changes.
into these two
to
Bank acting in close cooperation
with FHA' ^A and Treasury. It
year must has always been a source of wond
t
th t
government that
the'finan- takes
iha fmon. ?<* 10 me, that.a government that
such
^eeffeetsi^
now
^-nnw
■matters in de¬
tail,
aJ^10u^^^^slwfus
problems and many others lies in
a weu organized central Mortgage
im¬
j
-
_
the effects in the next few months
tions.
op'e ra
.1,
as tneir Plans lor nexi
what could be
.done
■.
dwindling demands, will c e-
n
on
.
,
the
housing industry and also
like
.,
been requested to speak
subjects-the warehousing
two
re-consti-
twelve-man rotating
or
■
i
be
tions of the country. All approved
mortgagees should be eligible to
com-
until
been solved.
solution to present
a
impotent
the low rent
well-organized Central Mortgage Bank,
a
slums
ACTION
as
pletely
of
well-intentioned
very
such
-
a
elimination
the
•
been
complete stop. The
Redevelopment Program,
Urban
j
re-
have
economy
brought to
seriously retard housing production in
Contends though
serious
Holds recent credit
re-
public sale
of notes and debentures and have
Treasury only in
to carry out administrative policy or in cases of
Low rent housing and
co-operatives so essential to well-
.
policy assisted by the one-for-one
and other devices of 1954.
program
agency.
its funds
tuted to be permanently controlled
by the government, to be operated
some
ling aids.
-
rediscount fa-
a
selves of the governmental financ-
.
Securities, Inc.
does not provide
for
outlying areas
states, and the minority
racial groups in this
country have
not yet been able to avail them-
:in
By THOMAS P. COOGAN*
11
the
to
and
areas
.certain types of residences.
•
President, Housing
(1523)
DEAN WITTER & CO.
I
12
The Commercial and Financial Chronicle
(1524)
today the average annual
of electricity
is five
tomer;
home
that,
Age
our
this
in
We
the
of past
record
of
years
electric
with
familiar
all
era—the Atomic Age.
says this growth pre-.
(1) making services depend¬
a new
phenomenal
growth.
In the 75
history, the national
economy has
our
ture
from
one
dependent
on
manpower
to
where
one
the
is
emphasis
mechan¬
on
ical
kinds.
all
in¬
energy
creases,
will
in
and it
doubtedly
un
P.
As
utilization
the
of
H.
of
energy
increase
almost
un-
limited
Liversidge
amounts, our
economy,—in
and
more
come
the
fact
to
more
supply of electrical
It
is
point
not
future
this
prediction.
emphasize
on
that
we
of
new
a
envisaged
prompt
me
no
of
utility plant increased nearly $500
or 140%.
In a recent study looking ahead
million,
that
ahead
believe
basis for this
is
and hydro¬
bombs have changed war from
struggle between armed soldiers
holocaust
of
destruction,
ca¬
pable of wiping out our entire ci¬
vilian population.
This seems to
to be the most
me
terrent
has
to
eVen
era
of
activated
compelling de¬
that
known.
believe
dently
an
war
civilized
by
man
Thus,
I confi¬
this country faces
tremendous
expansion,
increasing
an
billion '
by
1980—
the
(b)
popu¬
grasp
pact that nuclear
the
great
power
capable of hazarding an
more
ac¬
curate guess about the future than
Newcomen
was
importance
Even
uses.
our
present
whether
what that
of
in
predicting the
steam
for
power
today, in the light of
knowledge, I doubt
we
fully comprehend
discovery has meant to
First, the challenge to make
perfect
to
consumers
*
as
the
most
of
challenge to make
our
planning our future course,
usually think in terms of two
to five years, sometimes five to 10
with respect to major proj¬
years
rarely
ects;
Thus,
we
more
than
10
years.
tend to take for granted
basis of economy and
Third,, the
*An
address
by
Mr.
Liversidge at the
Annual
Electric
Meeting of the Pennsylvania
Association,
Philadelphia,
Pa.,
Sept. 20, 1955.
on
reliability.
challenge
to
attract
retain qualified manpower of
all skills and at all levels.
Fourth,
prove
In
the commercial field
of
our
the
challenge
business
so
as
to
im¬
to obtain the
maximum
goodwill of employees,
consumers, investors and the gen¬
eral public.
use
pattern, with average
customer showing about
per
three-fold
increase
and
years,
^"*<vvued
to
rise
During
industry
the
turn
public
past
has
in
progress
on
Service
Our
service
made
years,
plant
developing
of
where
here,
to
has made
more
and
the
This
consuming
more
dependent
ready
stores, office buildings and
other
establishments; in in¬
dustrial plants, large and small;
and in services to cities, boroughs
and townships.
,
today have sold the
electric
years
a
our
average
substantial
service.
ago
Not
goal
too
was
watt-hours of annual
use
for
many
years
the
isolated
thing
a
the
of
bal¬
involved.
But
these
plants
is
many
of
of
use
of
many
500 kilo¬
per cus¬
cheap
rent
is
supply.
the
Also, the
to
how;
many
say,
would it
years
require at the
■**
Br
BhtejiBBWH
ings
earn-
v
rate
to
electro
and
industries
equal the price
has to pay
for
the
to
a
of
thumb
be
applied income
with
to
ui we
•
contrive.
the
modern
bought
center
civilization
basic
earnings
have
been
when
10
times
A
sound
ratio
at
generally
they were
their
fore it
were
called
that
such
for
A
of
continuous service
have
all
been
an
case,
Emergency
top
have
we
Procedures
operating and
personnel
cre¬
engi¬
Set
share
per
was
only
the
individual
dures for
quick restoration of
so
proce¬
proce¬
ma¬
of Sept.
as
times.
seven
Check
to
design techniques
incorporate maximum
on
resistance
in
the
initial
it
ranged
tors
Establish
a
program for pa¬
trolling all transmission lines
and
principal distribution circuits dur¬
ing emergency conditions, utiliz¬
ing qualified personnel from all
departments.
Test
Continued
patrols
on
page
here
automobile
few
are
are
the
air-
industries,
investors
excessive, but
billion
who
re-
sales of S9.8
on
in
still
represented 8c of each
dollar. This year the profit
sales
will
be
considerably higher. Now
sales'and profits in
of all these aircraft makers shows
dollar
these
figures and show that
companies earned less than
The sharp
half General Motors'
earnings per
dollar of sales. Of course, on the
basis of invested capital, the earn-
similar pattern.
195.3' culminated in
This
leading aircraft makers
tabulated below in round mil-
their price, starting in mid-
very
in
of the five
are
lion
Now the market action this year
had
been
a
early
1955.
steep
very
rise
indeed, far outstripping the climb
ings of the aircraft companies
considerably
wise
United
Motors.
% of Sales
After
,
Taxes
Before
(Millions)
(Millions)
Taxes
Taxes
(Millions)
$1,033
-
s
After '
Taxes
Aircraft
$36.98
7.4%
3.6%
79.90
36.16
8.7
4.0
733
—
$76.73
915
__________
Douglas
Lockheed
45.95
22.45
6.3
3.1
655
American
53.38
646
52.48
$3,982
North
for General
Before
•
Sales
>•
are
percentage-
/—Net Income—,
|
Boeing
than
higher
INCOME
:
,
"
There
$308.44
Aviation
indeed very few other
are
businesses
in
operations
require
the
whose
country
two
years
or
between receipt of an order
delivery of goods, which are
more
and
content with such
of
.
26.00
8.1
4.0
22.18
-
8.1
3.4
7.2%
3.6%
profit
per
small
a
(In passing, be it said,
that this policy of constant shift¬
ing of orders is the best answer
to criticism
But it
to
assured
period
years:
threads
attitude
through
This
the
criticism
comments
market analysts.
the
basis
too
of
There
Washington,
are
32
on
been
of
of
and
in
con¬
type
one
new
indeed
plans
cancellation
long-term
of
better
trend
of
industry. The quality of our
making up the country's
air craft
"first line of defense" rather than
its quantity has been emphsized
by the defense planners. It would
impertinent
affair
this.
was
an
according to the changing
of
slow
the
up
Russians.
When
smiling faces, should
us
our
aircraft
building
program?
model, to be able to forecast with
criticize
and
national
when optimism proves unfounded?
shifting from
be
hot
of
of
to
the
blow
matter
10
plane
accuracy
the
they show
we
to
appear
in
the
government
the past
have
some
many
cold
foolish to
our
performance
over
changes
many
of
It is justified
the
companies
a
to the aircraft
seem
that
defense
over
as
margin).
does
layman
should
earnings
(1)
makers' profit
margin
dollar of sales!
$143.77
Russian's.
As to criticism (2), the volatility
of the business and the doubts as
the
construction;
(3)
(1),
comnaring
the earnings of General Mo-
gard
23
In fact for
stocks
tracts.
outages;
as
com-
lrorn 3 Vi times to 13 lk times.
years.
up
emergency
short-cut normal
storm
and
ings
study of 14 aircraft stocks in-
these
to:
dures to
(2)
craft
There
of
intensity.
of
figures
in
interruptions under storm con¬
ditions, even those of hurricane
own
criticism
to
some
1954 before and after income taxes
"Storm
of
neering
ing Korea.
the combined
as
to
restore
service
promptly
under
normal
condi¬
tions, and to minimize the length
ated
defense effort during and follow-
so
ficiently
our
the
sales dollar; and after taxes, earn-
with
and
a
has
under
overnight
up
is
that
bined price to their combined net
pos¬
working
grown
industry
business"
earnings
have
as
aircraft
The
cast aside as unattrac-
was
factors
dicates that the ratio of their
our
we
the
and
1954, it earned before
taxes $1,645 million or 17c of each
other
^ve-
-
proofing" techniques in designing
and maintaining our systems have
contributed to
improved service
reliability.
Service maintenance
jor
a
further
inflated
are
be-
of
de¬
obligation to maintain
this direction for years,
commendable
results.
(1)
not
at
earnings,
with
company
least
(2)
As
selling
current
attention,
seem to be:
impetus of World War II and the
|
It used to be thought that indus-
dear
•
over
industrial companies.
stocks
times current
attract
government
"mushroom
rela-
the years, rate
higher price times earnings ratio than stocks of volatile
any
were
manufacturer- and
Public utility stocks,
much
trial
investors
Almost
seven
would
the
tween
widely with the nature of
whose
sible.
We
It
sold.
or
is well recognized that such a test
a
shares.
drastically pared upon
renegotiation of contracts be-
the
pattern
We have become
nerve
er
a
tively stable
enough to
conservative
(1) Present earnings
ames
stock should be
varies
of
aircraft
^HE^^|;The chief objections
1
answer
the business.
was
whole group of aircraft stocks
started a decline as abrupt as the
preceding rise, flattening out. in
mid-year. In fact they held the
line better than most industrial
stocks in the July-August setback,
All- sorts of explanations are
earnings
up
whether
This alone
give conservative investors pause
to ask themselves: "Isn't this going
too far, too fast?" Whereupon the
selling at only
"sure-
a
lire"
index of general industrial
any
0ther industry whose stocks
can
discriminate^
to
of
averages.
of
pendability that human ingenuity
much
com¬
low ratio of present
a
distrust
NET
which calls for the maximum
such
on
made for this setback and for the
stock.
No such rule
rise
al¬
are
-
ahead.
nearly
earn-
ratio";
that is
new
significant
of
a
dear at its cur-
or
price is the "price times
ings
a
relatively
chemical
-
whether
determine
stock
important part
an
power
used by in-
yardstick much
to
industrial
proportions',
with almost unlimited possibilities
home; in
commercial
to
last
internal heat
an
for
us
their
consumer
services.
our
A
vestors
examination
our
made
problem
our
remarkable
these services—in the
We
for
to
has
Staff
Dependable
20
the
in
prospect
every
come.
In
Making
find
we
similar
a
a
a
organizations have functioned ef¬
the human relations aspects
residence
48th
our
Systems to meet this expansion
try—our
In
financing in developing
business potential.
icu^e
opportunities in
the huge plant expansions that lie
in
we
ment
con¬
ditions.
acceptance
railroads, our airplanes,
automobiles, in fact, our own
electric industry.
vantages and economics of install¬
a
Second,
four
electrical contractors with the ad¬
can
our
nearly
possible, under all
as
first
selling the public the
iaea
of
adequate
wiring,
such
camonigns can be used to acquaint
All of this adds up
challenges, briefly stated,
fall into four categories:
and
the
in
metallurgical
These
the economic growth of this coun¬
our
and
Aside from
ahead.
will have
our
paign,"
months, there were more than
7,500 wiring improvements of all
kinds
reported
by
contractors.
the market action
on
price-expected-earnings over the next few years, one is well
repaid for the risk of fluctuations taken in these earnings.
built
known as the "100-A Cam¬
electro
magnitude expected presents ma¬
jor challenges to us as we look
im¬
social and economic life. I
venture to
say we are now
no
on
a
year,
the growth is more or
a
cannot
such
even
rapid than this, the imposing
services
have
Philadelphia,
instituted
promotional program this
demands
necessitating ever-larger increases
capital investment.
still
in
val¬
In recognition of this,
Challenges
in
should be able to evaluate, we
we,
look
ahead; to design and engineer
Yet, knowing these things,which
them.
the
all
the manufacturers
ues
into
of
the
"must" if the
a
past, except for the relatively few
Growth Presents Major
less
wir¬
in the home,
obtain
to
cases
mil¬
lation, greater consumer demands,
higher standards of living,
all
we
is
customer
ance
lion.
Whether
home
ever-increasing
adequate wiring is
industrial
well reach $2.5 bil¬
by 1980, compared
with
our
present
plant
$800
the
number of appliances
customers
may
lion
of
responsi¬
accept
for modern
With
ing.
be had
may now
current
The extensive supply of central
company's total in¬
in utility plant
shares, and the arguments against their
one
present
vestment
investment
plan and design
now
also
must
station
Our
or
It is for such loads
bility for convincing customers of
25
can
30
reach
times
three
to
gen
a
years.
electric output
kilowatt-hours
that,
the fact that the atom
a
25
of
readily
-
among the scores of probable ben¬
efits, the greatest is the strong
possibility of a far longer era of
peace than the civilized world has
known. The
next
consumers
kilowatt-hours
must
we
as
systems.
their need
„
be
I happen
of those
who
the
in
(a) Total
rev¬
would
that
our
example,
growth
the most obvious
lie
we
assuming a load
only 4% a year after
1960, compared with the average
of 5V4% since 1930, we find that:
For
only be dimly
Any attempt to
Nevertheless,
to
years,
can
even
investment in
total
level
be
ever
period,
same
fact
the
futile.
one
compounded annually. During this
the threshold
on
today.
enumerate
growth of 5V\ %
expansion
The resultant effect of this
benefits
1954—an average
era—the atomic age.
olutionary step
to
1929
in
However, let
own belief that
today
in
kilowatt-hours in
billion
10
to
recognition
are
kilowatt-hours
billion
over
here
how
high we raise our
sights, they will probably be too
low.
Naturally this statement is
in
helpful to quojte a few
figures for our company, which
are
fairly typical of all electric
companies in the State:
In
the
last
quarter
century,
electric
output
increased
over
three-fold, from a little under 3
be
some
matter
made
accurately measured in terms of
what has happened in the past, it
developed some
startling figures as to our possible
that
economy
my
rely
of
elements
basic
our
wxu
power.
purpose
my
the
out
lives
our
growth potential in
electricity cannot be
the
uses
may
10,000
We
While
the
residential
of
more per year.
bilities.
been revolu¬
tionized
their implications as to fu¬
opportunities and responsi¬
using
other
and
pump
number
our
grasp
heat
yet
undeveloped devices, we can look
forward to a large increase in the
dynamic and dramatic aspects
business, and do not fully
the
of
the
after commenting
panies' stocks
the
estab¬
well
City
Exchange
purchase for investment, contends that since aircraft
1930 to less than
are
Stock
Investment analyst,
nearly 6 cents per
that
uses
,
York
of aircraft company
average
lished, the recent upsurge in home
air conditioners, and the prospect
of additional heavy demands from
Co., New York
of the New
Members
the present time.
continued growth of
With
many
economy
industry are
the
the
in
Stone &
Hayden,
there has been
use
decline
kilowatt-hour in
engineering systems
our
basis of
on a
By J. C. LU1TWEILER
cus¬
3 cents at
so as to meet
and reliability; (3) attract¬
ing and retaining qualified manpower, and (4) improving
human relations aspects of the electric industry.
(2) improving
able;
expansion
increased
unit cost—from
of electricity, but
as:
residential
now
are
steady
a
Predicting almost unlimited amounts of utilized energy in the
major challenges, such
times greater.
using more than
10,000 kilowatt-hours a year. With
tomers
Chairman of the Board
sents
suburban
our
Thousands of
Philadelphia Electric Company
future, Mr. Liversidge foresees
in
seven
By HORACE P. LIVERSIDGE*
Cites growth in uses
and
divisions it is
Thursday, October 13, 1955
.
Outlook for the Aircraft Stocks
use
times
The Electric Industry Looks
Ahead to the Atomic
.
.
for
The
a
layman
recent
to
Korean
eloquent test of
Only
Perhaps it is not
to
so
accelerate
much
it
changes
of
policy in the higher circles in
government, but newspaper stories
about what is apt to
happen, which
impression of starting
stopping and starting again.
gives
and
this
President
Eisenhower, himself,
recently that it is ex¬
tremely costly for the government
to be continually
shifting its plans.
Scrapping the manufacture of one
plane to start another just off the
remarked
drawing boards certainly must
tail
hundreds
of
millions
of
en¬
dol-
our
superior quality planes against the
Continued
on
page
3S
Volume
182
Number
5472
.
.
The Commercial and Financial Chronicle
.
(1525)
.computers
What Automation
Really Means
Walker discusses
the
mation, and ascribes^its sudden
and
use
out
the
plex
engineering and
approaches
that the
form
placing
has
a man
start
to
f
o
is
by
most
sophis¬
of
system
a
machine. This
a
with
re¬
the
application
they
in
energy
do
are
they
as
with
picture
to
g r a m
Machines
which
What
do;
to
the "Power
element,
new
then,
process
or
been added to
procedure.
In
has
impetus to automation
automatic
machinery?
The
the
early
made
a u
prede¬
changed
human
in¬
telligence and
determination.
satile
for
Lately,
programming
the
automatic
its
make
more ver¬
has
allowed
machine
decisions.
own
to
Let
us
first look at the development his¬
torically.
We
told
are
in
worker
day
for
which
and
local
himself
at
warps
the
because it would
time.
The
promptly
the
machine,
put workers out
mostatic element which
of
question,
that
Note
hot
too
it
there
it
"Is
is
drowned
answer
inventor.
did not stop the development, for
by 1678 ether inventors with the
same
to
similar ideas also started
or
add
special
controls
to
hand
weaving machine's. By 1745, after
many
failures and some partial
series of inventors in¬
successes, a
cluding
deGennes,
Vaucanson,
Bouchon, Falcon, Jacquard, Arkwright and Cartwright from Eng¬
land
and
France
had
produced
a
is
turned
•an
the passage
for
of the bobbin and so
the
pattern
on
the
determined
cloth.
threads
be lifted
cold."
too
is
of
vides
If it is
nace.
machine
for
automatically fill¬
If
with
a
on
punched cards.
The final
form of any of these
might
be
extremely
complex, but in essence they em¬
body only two things—a program¬
machines
ming device, which tells the
ma¬
is
and the
way
as
recall
of
our
on
little
for
played
us
moment, the part
the engineer in our
industrial life, just what his work
is, and how he is supposed to do
it.
tend
to
four
years
the
ago
Case
Institute
of Technology, in cele¬
brating its 75th Anniversary, held
a symposium on this general sub¬
ject
and
with
a
very
happy
thought chose for its title, "Lift¬
ing the burdens from the backs of
This, broadly speaking, is
task
engineers. We are to
work pleasant, to provide
more
leisure
time
for
tivity
The
one
century
in
things
available
pacity
was
is
over
the
1937
and
services
To
predict
needed
for
is
the
the
still
vision
the
and food, as
sets,
value
services
of the
1940 to 1955.
an
The GNP
contains
was
a
average
per
the fur¬
This announcement is not an
this
the
example
of
essence
GNP, of course, goes into national
which
obviously,
al¬
though it protects us from our en¬
emies, does not add to the goods
services of the average man.
and
al¬
Still, it must be counted, for as
put more of our Gross Na¬
we
tional Product into defense,
there
civilian use.
is less remaining for
During World War II, under the
pressure of the war with its ad¬
ditional workers and longer hours,
the
GNP
reached
a
temporary
of
peak
went- to
Since
ca¬
almost
almost
.1945
has
half
feed
that
$300 billion. In
of our product
-the-war
time
decreased
this
although
and
is,
$50
diverting
What
of the
Future?
question is, "What of
the future?" One might extrapoBut
our
Continued
should
on
ojjer ojsecuritiesjor sale or a solicitation ojan ojjer to buy securities.
240,000 Shares
Copperweld Steel Company
automation, namely, the in¬
telligence to make a decision and
the power
Common Stock
to do something about
To
summarize, the modern au¬
tomatic machine comprises four
First,
which
instrument
a
■
*
'
>
'
'
Par Value $5 per
share
f
t
,
sensing
determines
or
physical or chemi¬
cal quantity on which a decision
measures
may
some
Price $25 per
be based; second, a decision¬
element., which weights
the readings of the sensing instru¬
ments in proper order and proper
proportion; third, a programming
share
making
which
the
tells
machine
Copies oj the prospectus max/ be obtained Jcom such oj the undersigned
(who are among the underwriters named in the prospectus) as mag
legally ojjer these securities under applicable securities laws.
applying
this
energy
does
not
come
that
from
Usually, it is obtained
from the burning of fossil fuels,
manpower.
is
transmitted
what to do in accordance with the
decision;
useful
and fourth, a system
of
energy
to accomplish
work.
Such combinations
be as simple as the furnace,
complicated like a guided mis¬
sile.
With the advent of modern
computing machines many of the
decision-making
elements
have
become exceedingly complex and
mal
in their
pressed into
which
use
had
been
Ihe
address
Harvard
by
in the past. Ma¬
Dean
Walker
before
Graduate School of Business,
Boston, Mass.
/
Riter & Co.
'
show
Let
Blyth & Co., Inc.
Eastman, Dillon & Co.
.
Hornblower & Weeks
Hemphill, Noyes & Co.
Paine, Webber, Jackson & Curtis
complexity, they begin to
slight resemblance to
some
the brain of
*An
Dillon, Read & Co. Inc.
may
or
through the me¬
dium Of electricity.and thus differs
in price, availability and divisi¬
bility from the manpower or ani¬
power
page
October 11, 1955
it
Reynolds & Co.
man.
moment to
point out that the most complex
me
digress
a
we
billion a
year into national defense, this is
only about 15% of our total pro¬
ductive capacity.
still
are
ern
most
add
machine.
percentage
nor
mod¬
about
defense,
pro¬
on
as
doc¬
increase of about $12
year.
Some of the
Elements
Major
as
all
device
to
of
1940 and in 1954
peak of $365 billion,
entirely new machine,
Four
Simple
chine exactly what to do, and a
system for feeding energy into the
manufacturing process. It is al¬
parenthetical
well
billion in
it reached
capacity
2000
It
tors, dentists, ministers, and mili¬
tary men. This index, known as
the Gross National Product, has
shown an almost steady rise from
increasing.
steel
year
goods
the
in
includes, then, the value of all
the automobiles, factories,
tele¬
is upward, upward at
which
produced
throughout the year.
country
year.
trend
rate
be put
by us¬
is the dollar value of all the
depressions of 1921, 1932, and
are
still evident, the long-
term
a
can
basis
scientific
more
a
ing a measure known as the Gross
National Product.
In short, this
million
10
over
for
Productivity studies
on
At the turn of the
just
a
material
public con¬
the
sumption.
Today, in 1955, it
100 million tons. Although
tons per
is
there
"
of the best indices
steel productive
our
an
,
increase
performance, because steel
widely used in our produc¬
so
per
steady
of o(yir
is
up
that
production of steel is often
considered
6%
is
business ac¬
year
and it
in
increase
of
it
indicates
when
This
indicate-
Steel Production
and
time
200.
an
80 until
was
should
may
Automation
level
the
present
average
which
and
out
The
published a
"Times"
norm
almost
to
temporarily de¬
lay our industrial growth, they do
not seem to change materially the
upward slope of the curves.
as
with
the
go,
iron
productivity.
our
when
billion
to
expected
re¬
in
1935
a
tion machines.
Some
on
be
years?
50
an
$180
a
by
information
next
which, based on
of 100, shows
or
make
of
York
arbitrary
an
though they
the
Let
a
we
almost linear increase starting
barring, of
(and I am afraid we will
always have to make this reserva¬
tion), that there is not a major
depression in the period we pre¬
dict.
Fortunately, even depres¬
engineers
country,
is
try to
will
it
that
the
business index
course
engineering profession, as
its further impact on the
welfare
we
index
be
that
about
on
extrapolation
whether
or
and
in
choice, but whichever
solution
we
choose we will get
some idea of the way things may
ma¬
cooling machine, is necessary to
the proper action.
major elements.
if it is dene in accordance
on
take
block of
predetermined program stored
concern
by simple ex¬
problem as to
should
or
St»el is not the only recognized
whether we put such data
arbitrary logarithmic scale
will greatly affect the results. We
past,
How is this related to engineer¬
Our
The
about
predict the shape of a more com¬
plex curve from the data of the
sions
ing?
years
that
one
something
fold
peated
it turns out to be "Too
something is to be done
it.
automobile, especially
linear
engi¬
in the performance of their
impact of automation
opera¬
years
that the increase has been
"Too
neither too hot
ing milk bottles, for folding paper
boxes, or for drilling the cylinder
an
whether
displace
can
50
10
repeated
50
cold, the machine does noth¬
ing.
a
the
merely
answer
easy—one
switch to turn
a
next
be
in
tons
third, "Yes, it is
or
To
they
long
a
in
been
industry and engineers
trapolation.
Engineering
man
cold"
assured
"we-tell-it-what-4
has
predict
can
the
recog¬
computing
rest
us
Impact of Automation
make
cold";
complex
before
neers,
hot"; "No, it is neither too hot
too
can
Isn't
first
of
we
obliterating most
signal to noise
child
new¬
grant that automation, at
the
record
The
a
with the
for that period. Perhaps from this
work.
too
was
a
increase
the
million
90
New
tion for the past 50 years it might
be useful to take a look at the
to
infor¬
children and much less
men."
too
of
as a picture of a
far, far below the sig¬
Let
go
even
our
This
machine, eventually,
commercially
successful.
Knowing this history, it is fairly
obvious that there is nothing real¬
ly new when today one designs
answer
similarity
giant brains have
the question, "Is it too
cold?" by providing for
three possible answers—"Yes, it is
nor
take
found
that
assume
assume
the
say
to
automation?
of
to-do-kind,"
to
or
about it, an
which
furnace is
is "No,"
answer
least
a
either white
bits
idea
we
have
properly
which
would
of
the
a
If
picture
is
chines.
hot
hot" and
warp
If
instrument which could
controlling intelligence was stored
in a set of heavy punched cards
determined
choice
"No."
the
If the
too
the
merely
nothing happens. One might build
loom with centralized control. The
of
too
single
or
"Yes,"
on.
the
asks
cold?", to which
a
publicly
the
and
cold?"—It
too
answers—"Yes"
unfortunately, this
it
does
but
ther¬
cold?"
not ask, "Is it
"Is
too
or
asks,
power
a
senses
room
a
The workers themselves
or
limited
comprises
of work.
Fortunately,
a
a
It
which
modern
well
has
decision.
the
could
be
thermostat
temperature
one
of
use
ribbon
a
may
to
of
pic¬
nal to noise level that would per¬
mit
recognition by any of the
the
which
and
government
banned
a
the
factors
the decision
single sam¬
pling element and an "on"-"off"
switch.
On the other hand, there
may
be
many
physical factors
which are sampled and the rea¬
soning leading to a decision may
require an extensive computer.
Among
the
simplest
decision¬
making machines is the ordinary
thermostat, by which one controls
a
domestic heating furnace.
The
so
reached
continuously
worked
night
make six
1661
been
designed
loom
in
Danzig, Poland, whose
lost to posterity,
has
name
that
"snow"
or
ratio at which
by
be
can
The
dots
are
"No"
or
of the detail.
that
simple
very
except by the
intervention
of
noise
way
of decision."
The
entering into the decision
is
materials
synonymous
found
steepled church but with much
church
power
gram could not
be
a
nize the
of
pro¬
a
easily processed by com¬
puters. Now suppose, for instance,
one picks up a
very weak televi¬
sion signal from a distant station
and tne picture happens to be say,
an¬
it
as
or
on
engineer
and
earth, add the energy pro¬
vided by the sun, from the
atom,
or
from
fossil fuels, and to so
combine them by ingenious ideasf
engineering ideas, to provide the
things people want? Isn't this al¬
mation
im¬
simple
as
of
up
having
"Yes"
is
is
swer
tomation
termined
and
black,
or
pressive—"We have found a
giving
these
machines
of
the
provide this sudden
new
de¬
velopment
see
giant brains.
or
is
the
of
a
we
we
on
of
one
the
of the material
Can
automation just another manifes¬
tation of engineering?
ture
Decision"
of
pro-
biology
brains
of
manpower
find
most
puters
automatons.
Giving
prede¬
a
job
with
still
ble to treatment by modern com¬
accordance
termined
the
sketch another example.
me
more
of
form lines and lines which form
told
are
time to make
man
and
television set is painted in a man¬
ner which is
particularly applica¬
chines, such as we have been
describing, have no intelligence;
they have no minds of their own;
they
of
time
things he wants?
has
worm
leisure
the
remember
school
forms
about providing
go
more
systems.
nervous
The
all
high
lowest
Let
We
raster. These dots
Automation in its
we
in
that
neurons
our
the
economic system.
our
of
courses
programming device which tells the machine
on
an
Von
which
from
what to do in accordance with the decision; and (4) a system
of applying energy to accomplish useful work. Traces impact
of automation
even
earthworm."
(1) the sensing and measuring of some physical or chemical
quantity; (2) a decision-making element which weights the
readings of the sensing instruments in proper order and proper
a
will
number
of machines that have the power of decision. Points
automatic machine comprises as major elements:
proportion; (3)
things he wants. How do
brain
impetus to the invention
new
unintelligent
Nuemann, I be¬
said, "The most com¬
computing machine has a
of
decision-making
lieve it was,
of auto¬
progress
some
material
and
are
John
man.
meaning and
and
cultural pursuits
provide him with all the
we
and still
ligence
By ERIC A. WALKER*
Dean
recreation
far below the intel¬
elements
Dean, College of Engineering and Architecture
The Pennsylvania State University
ticated
13
±
j
L. F. Rothschild & Co.
incorporated
\
28
34
The Commercial and Financial Chronicle
(1526)
these
Nuclear Fuel for the
World Power
I5y JESSE
Program
C. JOHNSON*
Director, Division
On
Commission
energy
nuclear
these
fuels
Atomic
which
far
exceed
the
all
other
metal.
rare
a
and uranium
Looks
for
from
which
has
drive
to
the
been
force
portant
im¬
most
relieving
in
man
physical drudgery and pro¬
viding leisure
for
spiritual
and
mental
development.
can
of
brought into
operations
and
ore
formation
and
Special
niques
have
in
been
from
ores
eries
and
parts of
many
the
world
by
growing
shortage
re¬
sources
Jesse C. Johnson
and
fossil
fuels.
But
now,
is
the
there
prospect
of
nuclear
a
have
may
power
the Industrial
as
era
far-reaching
as
Revo¬
lution.
nuclear
have
The
abundant
economic
nuclear
fuel
will
era
resources.
utilization
fuels.
nuclear
The
local
fuel
be
of
these
location
of
plants will not be
power
determined
by the availability of
supply. Nuclear fuel
transferred
by air to any
part of the world and transporta¬
can
tion costs will have
effect
no
the cost of
upon
those
ceed
fuel.
of
all
There
of
sources
and
of
re¬
thorium
long range expanding world
a
power program.
Uranium
.
of
nuclear
■■
will
fuel
future
the important
be
for
the
according
Most
foreseeable
to
reactor
discussed
be
the
the
present
to
programs
this
at
the
uranium
Western
supply
Nations
al¬
was
entirely the product of two
mines, one in the Belgian Congo
and
the
ada.
In
little
and
other
the
Northern
in
Can¬
past, there had been
general interest in
uranium
throughout most of the world
there
had
been
Even
ising from
serious
no
search
vast areas, prom¬
now
geological standpoint,
relatively unexplored.
are
a
Today there
operations
Canada,
and
the Belgian
in
States.
Portugal
uranium
for
with
Africa
Congo,
and
the
Australia, France
also are producing
favorable prospects
substantially
increased
pro¬
duction.
This
conference
production
uranium
production
rate
the
age
mercial
phosphate
rock
five
at
billion
exploration and metallurgical re¬
search
programs have
played a
major role in supporting private
operations and speeding develop¬
ments.
by
the
and
tons
nium,, content
at
These
would
reserves
increased
be
crop
is
rock
rent
tons.
has
also
estimated
an
billion tons of marine shale
United
for
exploration and de¬
velopment of exploration methods
of-
from
despite
the
represents
government
crop,
loan
fact,
six
to
million
Known
of
tons
the
on
the
States
barley
largest
000
the
is
crop
record—some
on
sea¬
billion
tons,
The
third
largest
total
are
contain
the
found
in
number
a
the
$30
and $50
able
pound.
per
by-products
uranium
upon
information
this
has
as
.the
been
a
Now
the
em¬
phasis is on the peaceful uses of
atomic energy.
The information
that
may
contribute to the de¬
velopment of these uses through¬
guarded
out,
The
the
secret.
world
is
to
be
shared.
have
ful
this
at
conference
as
100
covered at moderate cost
a
or
zinc, and is about
plentiful
more
than
However, it was rather
generally assumed that concentra¬
tions in commercial
deposits might
be
rare.
not
be
the
This
has
proved
to
able
nium
have
New sources of
been
found
ura¬
and
fl
*A
nt
presented by Mr.
"Atoms-for-Peace"
paper
the
Geneva, Switzerland.
the
active prospecting and
search
tended,
tion
Johnson
Conference)
posits of types
but
the
is
which
for
more
will
resources
every
uranium
and
become
more
is
ex¬
informa¬
available
to
believe
now
years.
Boston
weather
also harmed
on
must
from
this
crop
summer.
that
jeco-
the
in this category
future explora¬
(Special to The Financial Chronicle)
the Los
ually
bushels
large, in
stantial
Cotton
little
a
view
above
the
of
This
carryover.
and
will bring in new sources of pro¬
duction and increase available
(Special to The Financial Chronicle)
should
to
SACRAMENTO,
The rapid expansion of uranium
a
years
has
been
very
possible
Continued
on
H. Root is
vestors
Calif.—Robert
with Financial In¬
now
Incorporated, 1716 Broad¬
way.
Joins Mutual Fund Assoc.;
(Special to The Financial Chronicle)
SACRAMENTO,
G.
Yeager has
Calif.—Albert
become
wilh Mutual Fund
affiliated
Associates, 2101
L Street.
.
.
Walston Adds
.
Staff
to
SAN
H.
DIEGO,
Calif. —William
Haskell has been added to the
staff of Walston & Co., 625 Broad¬
way.
few
because
page
47
Crops
Establised
H. Hentz & Co.
Including the Aug.
carryover
of some
11,100,000
bales, total supplies for the cur¬
Members
New
average.
some
over
are
may
son
They,
burden¬
top-heavy.
not
prove
and
other
Inc.
Trade
of
New Orleans Cotton
Exchange
exchanges
since the bulk of the carry¬
as
the
sea¬
along and prices prob¬
with
around
an
indicated
above average.
of
the
Boston
outturn
9%
This means plenty
specialty for all
18,900,000
Nl.
Y.
Cotton
NEW
Chicago
higher.
Dry beans promise to do well this
of
Exchange
Exchange,
Board
is in government hands. Free
works
year,
Exchange
Cotton
Commodity
Chicago
Exchange
Stock
York
New
-
Stock
York
American
1
season
1856
plantings^
bales, which would
be only moderately under the 10-
year
bags
—
y
(Soecial to The Financial Chronicle)
12,873,000
ably will average
within
Fall
supplies will dwindle
re¬
serves.
production
Spring Street, members of
Angeles Stock Exchange.
With Financial In v.
sub¬
the U. S.< cotton crop may amount
Experience gained from the
present
uranium
program
has however,
prices
Other
Despite record small
rent
higher
of
Company,
LOS ANGELES, Calif. —Barry
corn
these* J. Walsh has joined the staff of
sharp Marache, Dofflemyre & Co., 634
South
.
some
that
proprietor
Securities
But;
is
de¬
tion.
demonstrated
sole
now
Building.
weathered
being mined
outside
resources
Proprietorship
uranium.
include
such large
but most of the informa¬
come
con¬
serve
With Marache Dofflemyre
con¬
the country's
10-year average. Total sup¬
plies for 1955-1956 will be unus¬
by¬
prevailing today. We
already know of
reserves
of
will
about
for the future. There
reason
tons
are
nomic limits
tion
Because
should
accelerate
success.
million
resources
case.
^exploration have been, undertaken
already fast- in only a few
countries, and these
moving developments in all phases countries are as
yet only partially
of atomic energy.
explored, we are not now .in a
The Western Nations which are
position to estimate the uranium
cooperating in developing urani¬ resources of the world.
As the
um production have achieved not¬
nuclear power program
grows and
greatly
These
is
the
recov¬
as
should
faithfully,
DENVER, Colo.—Mona Rabinowitz
Frontier
467,000
ered
the cost may
be reduced.
Furthermore, uranium can be re¬
several
lead
times
Now
to.
silver.
exchange of information and
ideas
amounted
work
(Special to The Financial Chronicle)
Despite
losses, the indicated crop of 3,113,-
If valu¬
be
can
farmers
their basic convictions.
is
sturdy and
heatings
well.
uranium
be between
may
in
crop
unfavorable
ditions
the primary product from phos¬
phate and shales
long-term solution.
a
their God, and vote in accordance
the
crop
for
record. The record
on
highest-quality
corn
The cost of extracting
Con¬
January.
Another record-breaker is
The
of
countries.
as
well-being
when
in
Outlook for Corn and Soybears
posits of uraniferous shale. Urani¬
um-bearing coal and lignite also
have been
agenda
high, rigid supports will
to
with
hay crop—108,500,000 tons—
easily meet all require¬
with
large de¬
very
Presidential elec¬
I again forecast that the real
tinue
cats, with an outturn of 1,636,000,000 bushels—and, incidentally,
Scandi¬
but,
doing well.
a
reconvenes
Meanwhile,
386,000,-
supply,
ments.
20
farm;
situation, American
is
should
at
of
need
second
tiful
in
cost
be restored, or the flexible system
further extended, remains to be
This is enough to go
Flaxseed also is in plen¬
around.
For example,
estimated
the
inefficient
the
top
Whether
1955
bushels.
the phosphate deposits of Morocco,
grade and tonnage.
that
seen.
The
uranium.
United
small,
will
son.
deposits of uraniferous
of
fact
the
Since 1956 is
aver¬
wheat prices later in the
age
phosphate rock and shale in other
parts of the world equal or exceed
those
well-managed
making money,
agriculture is
plus
result in higher
may
lower
period
still
gress
the
85
aver¬
of five
reserve
a
months of this
tion year, the farmer's
This
farmer,
products
Efficient,
are
I view the
as
cur¬
product from some commercial keep prices from kicking over the
approximately.
phosphate fertilizer and chemical traces, and make for favorable
source
of
fissionable
material, $46 million, and for metallurgical
operations. This already is being livestock feeding ratios. Efficient
although thorium also may be research and pilot plant opera¬
done.
Approximately
10,000,000 hog and cattle producers should
used.
tions over $12 million.
In 1948
tons of commercial phosphate rock benefit.
Since uranium will be a pri¬ the United States was considered
are mined annually in the United
Soybeans—"Johnny-Come-Late¬
mary source of fuel for nuclear by many to have relatively" poor
States.
If all of this
rock was
ly". wonder boy among
U.
S.
uranium prospects.
Ore reserves
power, it is appropriate for this
processed to phosphoric acid, in grains—also took a drubbing from
are
now
conference
to
consider
increasing more rapidly excess of
present
1,000 tons of by-product the elements this summer, but
and potential uranium resources, than at any time since the pro¬
uranium
oxide might be recov-. came
through with flying colors.
and
the
operations
related
to gram commenced.
ered annually.
Barring further damage, a record
uranium
One of the important conclu¬
production.
Further¬
Between the commercial urani¬ •crop of around 388,000,000 bushels
more, in many countries a survey sions to be drawn from the in¬
is in the works; this would be 13%
um deposits of today and the high
for radioactive minerals will be formation
gathered
during
the cost uranium resources
of
the above the 1954 outturn and 62%
the first major project in their past seven years is that commer¬
over
more distant future, there are de¬
the 10-year average.
Over¬
study of a nuclear power pro¬ cial uranium deposits of consider¬
posits that could supply uranium all supplies of this versatile bean
able size may be found in many
gram.
at a cost of between $10 and $30 appear
somewhat heavy to me,
Most
information
on
uranium areas and under a
variety of geo¬ a
pound.
The resources ill this and I doubt that prices will make
has
been
developed during the logical
conditions.
It
long has economic class are not well known sustained
progress on the upside,
past seven years but because of been known that in the earth's
but they must be large, perhaps over the near term at least.
its military importance, much of crust uranium is about as plenti¬
depend
the
1944-1953
are
hands.
Do
things the farmer buys is still rel¬
atively high. The going, of course,
is tough, and always has
been, for
tenth of
This
prices of farm
1954.
of
huge, since the
last July topped a bil¬
season
to
averaged about 5%
in the corresponding
farms
ma¬
American"
ernment
slightly more than onea pound uranium per ton.
aging
20%
later
to fairly good
up
the
lion bushels by a sizeable margin.
Most of it, however, was in gov¬
considered commercial.The United
States
final
total supplies for the
carryover
greatly
presently
not
down
higher
Continue
first eight
the
year
than
the published esti¬
Although the total wheat
of nearly 917,000,000 bushels
average,
by including low-grade
phosphatic
for
and
mates.
ura¬
600,000
although
terially from
the
the
Should
for
ficial tallies
probably will
,
Baboon
W.
Roger
work
this adds
All
timels
not differ
the
in
should
Farmers
har¬
been
estimated
are
of
have
vested,
grade uraniferous phosphate and
shale deposits.
Reserves of com¬
United States alone
Prices
on.
crops
already
the vast low
gome from
may
no difficulty
meeting late fall and winter needs.
Fairly Well
the
distant future,
more
may
size, and should have
S.
A number of
requirements for the atomic
crop
(grown in 29 states) of 313,527,000 bushels is about average
record
summer
„
In
fuel
rice
about
size.
Fuels
S.
crop
outturn
-
to
U.
48,700,000 bags
amount easily sufficient for
all requirements. The late potato
for
U.
year
near
of
Nuclear
Other
However, government
Expenditures
ura¬
the present
be
maintained
unless there is a military demand
or government stockpiling.
territories
pro¬
a
tive system.
this
cannot
program
look
total
crop
navian Peninsula and other Baltic
large extent has been
carried out by private industry
operating under the profit incen¬
States
substantial
a
uranium-bearing.
to
gram
still
a
In the meantime, the high
poses.
major uranium
are
South
United
pattern of development and plan¬
ning.
1948
Uranium Production Program
types
adequate
uranium
uranium
By-product
most
power.
other
are
of
is
before there
recov¬
cost
measurable
The world's energy resources in
the form of nuclear fuels far ex¬
for
In
problem will be the efficient
and
a
power
the
recovered commercially
low grade materials.
very
for it.
The
increased
reduced
being
from
of
water
uranium
extracting
have
production.
is
for
developed
ex¬
nium requirement for power pur¬
for radioactive
New metallurgical
for
processes
limited
the
occur¬
is expected to
amount
tobacco, vege¬
tables, and
other crops, I
of
The
—an
sorghums,
grain
soybeans,
corn,
pand rapidly once industrial scale
operations prove it to be econom¬
ical, it may be 1970, or even 1980,
exploring
ready is being
in
deposits
their
greatly increased.
instruments
and
tech¬
minerals.
al¬
of
been
use
ex¬
In¬
extended.
uranium
nature
has
rence
nuclear power
hands!
floods, have sharply cut yields of
an average
use
total
a
year
heat, together with hurricanes and
This is uranium
Although the
this
Although prolonged drought and
million
two
situation, Mr. Babson looks for
crop
.
na¬
estimated to
and
one
concentrate.
production. Former
been
expanded
on
the
producing
are
be produced at moderate
can
the
of near-record size. Says farmers
should continue to do fairly well, but sees a real need for a
long-term solution of farm prices.
of about $10 a
pound for U;!0* in a high grade
have
ly, power
pansion
influence
that
"breeding," to
reserves
between
cost, at
of
use
the
tons of uranium.
longer be
no
efficient
more
Unfortunate¬
which
be
of fuel,
types
nuclear fuel through improved conversion, or
offset higher uranium cost.
with
In reviewing
basis of present devel¬
and geological evidence,
tions of the West
cooperating in the development of uranium products
considered
machines
of
Energy Commission expert asserts the Western Nations
are
have achieved notable success,
Power
the form
Crop Situation
By ROGER W. BAESON
U. S. crop output
opments
in
resources
of
The
program.
resources
Pointing out tU world's
be far larger
considering to¬
are
day. However, the areas now pro¬
ducing or under active develop¬
ment assure an adequate supply'
of uranium for a long range power
Raw Materials
of
U. S. Atomic Energy
we
Thursday, October 13, 1955
.
will
resources
than those
.
.
Miami
Exchange Bldg.
YORK
•
Detroit
Beach
Hollywood.
Fla.
Geneva,
•
•
4,
•
Y.
N.
Pittsburgh
Coral
Beverly
Gables
Hills,
Switzerland
Ame8terdam.
Holland
Gal.
Volume
182
Number
5472
.
.
The Commercial and Financial Chronicle
.
(1527)
Automobiles—and other Consumer
other of
Capital
The "New" New-Era
of
these
By MILLER H. PONTIUS
Goods.
segments
business
reason¬
1953-54. " The
ings regarding the continuation of the current business boom.
Points out previous
Napoleonic
wars
was
1920's, which
followed by
were
a
had
of
some
years
to
more
that
seem
velop
new
•—who
are
violent
de¬
to
economic philosophers
apt to become very
much
im¬
pressed
.
.
with
the status quo.
If
trend
a
tinues
con¬
in
one
direction
several
they
for
years,
begin to
feel
it
that
more
is
less
or
permanent.
Now
hum we
of
flower
the
Confidence
Period
foniius
tl.
of
usual
World
Wide
Miller
probably
than
Insofar
boom
the
that follows
it
What
.
be
the
as
1953
would
cerned—that
money
sive.
had
decline and
are
con¬
scarcely be
a
these
and
it
probably
was
situation
a
to bring about the
by certain people
—
prove
in
to
not
going to have
depressions—or that we
are
we
any more
are
—
sat¬
a
boom,
a
Based
expen¬
we
then
because
a
war
are
now
inexpensive
an
at
a
point where
there is continuously less fear of
,of prices of stocks and
^general war throughout the world
bonds—through cheaper money.*•"
—fluctuating exchange rates, con¬
We know that the present busi¬ fiscation, etc., and
foreigners are
ness boom is going on all over the
gradually taking home their gold.
world.
Construction is extremely It is variously estimated that they
active in Europe, around the Med¬ still have on balance here from $8
momentum
tainly looks
it
and
if it would
as
become
connected
with
&
Co., 265 Montgomery
Street, members of the New York
San
and
Francisco
Stock
Ex¬
history, the
to
seems
be show¬
Joins Norman
-
Dacey
(Special to The Financial Chronicle)
BRIDGEPORT,
boom
D; Phelan is
now
Conn.
—
"
James
with Norman F.
Dacey & Associates, 114 State St.
a great long
backlogs of the
always been
followed by a substantial adjust¬
ment period—about a decade after
war—and
that
Joins Robert Buell
has
the close of hostilities.
Joins Merrill
(Special to The Financial Chronicle)
^HARTFORD, Conn.—Walter R.
Hanford, Jr. is now with Robert
C. Buell &
Company, 36 Pearl St.
Charles Thenebe Adds
Lynch
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
.
HARTFORD, Conn.—Mrs. Bea-
ATLANTA, Ga.—Allen W.Wood
has
of
trice Palasay has joined the staff
Lynch, Pierce, Fenner &
Beane, 23 Pryor Street, N. E.
of Charles E. Thenebe & Associates, 36 Pearl Street.
been
added
to
the
staff
First
Paul McDougal Adds
(Special to The Financial Chronicle)
{
Calif. Adds
SAN FRANCISCO, Calif.—Jack
Raiford is with Paul A. McDougal
T. Rose is now with First California Company, Inc., 300 Mont-
Cnmoany, Murrah Building.
gomery
COLUMBUS,
Ga.
—
Ralph
,
C.
Street.
to $10
billion, and if this outward
movement of gold became accen¬
tuated
it
could
make
credit in this country.
cer¬
eigners
home
carry
for another year or two.
on
has
Walston
boom—to fill the
recovery
mendous
'.SAN FRANCISCO, Cal.—Edwin
Mir
changes.
Merrill
We
Staff
to
"
of
on
&
end of War—and then
have
government
and the necessities of fi¬
a
economic
on
during the War—fol¬
lowed by a three year adjustment,
beginning about one year after the
long period of inordinately
tion of industrial activity and the
world
sented
long
becomes tight and
nancing
a major war—and as
iterranean and in the Far East.
begins to think more Both in the United States and in
peace and less war—there are a other countries of the world the
number of arguments being pre¬
present business tempo has tre¬
the
of
basis.
;
resump¬
for
Slayton
(Special to The Financial Chronicle)
ing many of the symptoms of the
old Major War Cycle—consisting
point
pressures
similar to that of 1927—relatively
opportunities
New New-Era
In the United States
a
the
to
episodes provide
the vulnerability of real
refuge from the war-torn world,
as
•and
itself at that time,
exhausted
relation
cheap money rates—d\ie to the
liquidation of the great depres¬
sion, the devaluation of the dollar,
the great supply of gold in the
country, some of which came in
The great postwar boom had
test.
not
uration
.Walston Adds
great heavy construc¬
a
people to work—and get paid.
of
was
subsequent recovery
be¬
estate.
handled better
then—partly be¬
cause of new gadgets in the form
of additional powers of the Board,
but
mainly because the experi¬
ence of those days has given peo¬
ple more wisdom.
easy
in the full
are
will
now
of
associated" with
Co., 207 East Broadway.
World War II arrived and the de¬
mands
Tight Money Means
test of
no
run
It would
Usually about the time of
Every long boom or
liquidating period seems
and
1948-49
ALTON, 111.—Harry F. Miller is
now
tion period started that
fore complete saturation.
Con¬
depression.
severe
period
(Special to The Financial Chronicle)
The
.
bring us out of the de¬
pression through this manner of
stimulation, but it was only when
we really
in the post¬
cycle, and certainly the got back into boom times. High
wages are a good thing for every¬
adjustment of 1953-54 was of short
duration and the boom obviously body, but are important only in
"New-Era" is showing many symptoms of the
old Major War Cycle.
I
new
1948-49
period.
to
years
boom
war
periods of rapid population increase in U. S. was accom¬
panied by peacetime depressions. Calls attention also to a
depression, under Federal Reserve money-control in the late
cludes the
mild
recent
of
relatively early
was
of technological development following
followed by a long depression, and
era
the
declines
With Slayton & Co.
goods does not stave
liquidating
a
Roosevelt administration tried for
.
faults—during
of the "new era"
people for the purchase
consumers
off
be¬
non-cyclical?
~
Regarding real estate, others are
writing about the absence of de¬
New York City
some
have
industry
of
come
Vice-President, F. Eberstadt & Co., Inc.
Investment banker examines
when
Since
15
the
N. Y.
for
tighter
These for¬
apt to take their gold
are
faster
time
as
situation
goes
their
in
own
Savings Banks Assn. Elects
New Officers
on—as
coun¬
danger of any great
and
It would
seem,
however, that tries becomes more stable
change in the price level within ultimately we must come to the the movement is likely to become
the next few years.
The general
point where heavy industry has rapid, if as and when, economic
idea (just as in the past) is that
to slow up—and that would prob¬ conditions in the United States beThis is all DIFFERENT and we
ably be on the appearances of gin to look less attractive.
are again on some kind of a per¬
This process would become im¬
over-production in industry. As
manent high plateau of economic
the over-production becomes more portant in affecting credit during
activities.
apparent in various industries a period of general liquidation. It
This writing is intended to be a
around the world there will be would be healthy for the world
brief but objective examination of
gradual cessation of the building in the long run—but might bring
some
of this New Era reasoning.
of additional productive capacity. about a temporarily acute credit
The Engineers talk about the This throws the heavy construc¬ situation here.
present great era of new techno- tion workers out of employment
Some people argue that the or¬
logical developments — which and starts a downward movement ganization of labor and its success¬
no
—
Clarence G.
~
-
Michalis, Chairman of Seamen's Bank for Savings,
York, named President, and Daniel T. Rowe, President of
Kings Highway Savings Bank, Brooklyn, elected Vice-President
New
j
j
,
should
carry
for
on
and
years
years.
At the end of the ten year boom
following the Battle of Waterloo
.
—which spreads to home building
ful promotion of high wage scales
and commercial building — about
will
be
a
factor
in
preventing
the
time of saturation in those
much of a decline in business. It
fields.
would seem that the present labor
1929 and Today
Napoleonic Wars,
We
know
the
differences be¬
England had a long depressionright in the teeth of the develop¬ tween 1929 (the peak of prosper¬
ment of Steam Power and the In¬ ity) and 1932 (the bottom of de¬
dustrial Revolution—which was of pression) were generally as fol¬
and the close of
s
economic
great
very
over
..
25 to 50 year
a
importance
lows:
pop¬
This
that
is
it is
ence
we
over
Experience
only
once
saturation
For
bullish
very
period.
year
a
modifying influ¬
to a period of
over^expansion.
a
come
and
example,
the
of
one
worst
peacetime depressions in the Uni¬
ted
States
1890s
at
Consumers Goods
(2)
came
time
a
in
the
when
middle
we
were
.
when
will
stimulation
boom
At
the
is
money
able
time
present
the
two
it
most
elements of the boom in
States
United
Consumer
In
both
fore
would
the
are
amount
in
of
of
credit
outstanding and
Urban Real Estate.
these
fields
history.
our
there
We
trols
certainly
the
on
Reserve
there need be
depressions.
more
had
part
Board
in
money
of
the
the
con¬
Federal
1920s.
Na¬
turally the Board, as well as other
Americans, are more experienced
with
nomic
great
1920s,
the
fluctuations
trends
war,
and
which
and
eco¬
surround
a
than they were in the
the money situation
of
are
the
National
mere
fact that there is wide
subsidization
of
one
kind
or
an¬
Foundation
for
Infantile
director of the New York YMCA.
This
tively
with
be
New
up
also
newly elected Vice-President, is Chair¬
of the American Red Cross' Brooklyn Chapter and
Chairman of the Greater New York Fund's Savings
Banks Division.
j
announcement
appears as a matter
of record only.
October 11, 1955.
Financing
Lone Star Cement
Corporation
3 3A% Term Loan Due 1970
1
Stock
to date has had rela¬
little
1929.
$30,000,000
be¬
The
in
comparison
course
all debt and
debt
Of
considered
in
the
light of the
changed value of the dollar due to
Roosevelt's devaluation, and to the
enormously increased government
Direct placement
of this Loan with institutional
investors has been
negotiated by the undersigned.
debt.
Some
that
longer
This
people
are now writing
industry should no
be considered as cyclical.
the steel
seems
consumers
ciated with
unrealistic—the
of
steel
are
still
large
asso¬
Heavy Construction—
;
Mr. Rowe, the
of reduced industrial activ¬
ity.
a
are
ever
the income of the country have to
boom situation and
no
people
Paralysis and
the
showed
able to handle the
Michalis, in addition to his banking connection,
trustee
a
vulner¬
Market
are
is
for¬
carry
by the Federal Reserve and that
having brought ourselves out of
the
slight
decline
in
1953
we
we
Mr.
v
the
the
present
the
easily
much heavier loans than
controlled
Daniel T. Rowe, President, Kings Highway Savings
was selected,
Bank, Brooklyn,
time.
ing that this is the first time
had
They have very lit¬
significance when
thrown out of jobs be¬
economic
never
sustain
the debts upon
ever
,,
However,
at
on
could
some
that
seem
not
Money Economists write
about credit. People are now
say¬
have
As Vice-President of the Association for the 1955-1956
season,
off
were
world
longer.
any
for
we
Bank.
cheap money and artificial
and
The
Association
.
along at the same tempo all
After a long period of
intense activity we reach a period
ward
What the Money Economists Say
,
time.
time
tory, through immigration from
Europe. - A boom period seems to
have a way of getting ahead of the
long term growth processes.
the
Historically
the
momentum
his¬
the
goes
growth in
our
working
Savings, New York City, as the President
for the coming year. He succeeds
George M. Penney, President of the Oswego City Savings
of
about 40%.
having the largest percentage of
population in
,
..
off
were
Service industries
(3)
25
shows
tle
The
about 20%.
power.
off
was
about 80%.
ulation growth and resulting buy¬
ing
simply
ton
men's Bank for
of the dollar.
cause
Heavy. industry
(1)
on
are
out in line with the reduced value
delegates to the Savings Banks Association of
on Oct. 5 at their convention held in
Washing¬
elected Clarence G. Michalis, Chairman of the Sea¬
man
period.
The Statisticians dwell
scales
wage
The
New York
Hayden, Stone & Co.
Adamex Securities Corporation
16
The Commercial and Financial Chronicle
(1528)
tory,, they
"make
of the
yields too
attractive for urgent selling to
continue too much longer.
THE MARKET... AND YOU
By WALLACE
Some Standouts
the
sumed
scale
when
of
status
correction
various
precipitous decline
full- running into 1932.
a
as-
more
even
week
this
resistance
*
lev-
instances.
*
*
was
not
of
midst
the
this
selling
Seiberling Rubber which
only appeared on the new
*
session this week would have
been
the
dozen
affairs.
they
cause
section of
are one
well
the market that has been
sharpest loss in a
exceeding even
dumping of stocks
Technicians in Limelight
day loss in the rail average search for indicators that will measure of troubles with Fire¬
was the sharpest since the
give some clue to where the stone going in for some multi¬
1946 market break, except for correction will stop and when
point declines to join the
the 11-point loss of Sept. 26. it will be completed. The tra- fast-stepping company.
*
The
*
*
dition is that the retracement
of the per-
effect
net
sistent
selling was to clip
more than 50 points from the
peak reading of the industrial
average
which reached 487
for a closing high-water mark,
By comparison, in the 1929
break a total of nearly 69
points
sheared from the
were
will
cover
from one-third to
one-half of the advance, leav-
rather wide band for a
new floor to be established,
The figures that are bei% cftculated most widely are from
385 to 410 as the likely area
ing
a
for the list to make
it
intends to do
*
average
in two successive
illustrates the
days which
added shelter of this
period of
high margin requirements.
No Burden of
Margin Calls
Liquidation has been
sistent
enough, and
whole
fairly orderly.
there had been
of
on
But if
top of the
on
selling, it
c o u
The
accelerated
where
to
months
.
.
_
j
trimmed
which
in
some
two
the
sues,
*
aluminum
is¬
after taking their beat¬
ing in turn, were among the
The 450 area had been conearly issues that reached
sidered a sturdy support area something of an oversold con¬
and it was able to stem predition and also staged resist¬
vious selling drives no less
ance to further trouncing.
than three
times, including
❖
*
*
the Sept. 26 panic drop and
As predicted for so long,
again a week later. But the the blue
chips that led the
third Blue Monday in a row
way for so long uphill ran into
this week wiped out that resome of the heavier weather
sistance level in a rush. Supwith du Pont badly battered
port had been expected at a
repeatedly to where it had
reached
the industrial average
rout.
the
and
selloff
a
half
a
rally.
It
timists who
that the
it
cheered
the
base their
correction
reach traditional peak
op¬
hopes
w o
n't
propor-
level in tune with
a
was more
in that
than 50 points be¬
low the
year's best price. This
spelled a correction running
in the nature of 20%. Beth¬
lehem
Steel, which
was
forced
points
were
^°PS
,,
from
set
•*
The
around.
so.
#
vje
that the down some 20 points under
extra dividend-season is just its
year's peak and General
getting underway. One of the
stage for the. lushest dividend crops in his- Motors, off around 15 points
from its top, were roughly
90
f
stand if
p p e r s, so
leve^ some 20 points beneath
a
the
do
this
at any
with
coincide
time
in
expressed
necessarily
of
not
those
the
"Chronicle"
They are presented
those of the author only. J
as
On
able
"FOR SALE"
with
to
a
at
times
but
were
fight the downtrend
bit
more
Motor v
General
luck.
incidentally, took
a couple of
will
in
the
|
volumes of the
COMMERCIAL & FINANCIAL CHRONICLE
Of Illinois Road Bonds
covering the
years
1926-1951 inclusive.
wethers
that
of
was
the
a
bell¬
selling
be
to
underwritten
immediately.
will
Illinois
speaker at
be
arrangements,
bonds.
Mr.
I. Stratton of
the
principal
had been with the
information meet¬
firm
(Oct. 13) at
an
Chamber of
the Great Hall of the
Street,
Liberty
65
Commerce,
York
City, concerning the
offering of approximately $415,000,000 Illinois Toll Road bonds.
New
offering is scheduled to be
shortly thereafter by an un¬
derwriting syndicate of approxi¬
made
564
mately
members
headed by
Co. and Halsey,
Glore, Forgan &
Stuart &
Co. Inc.
With Governor
Stratton
will
Edwin
be
Director
State
stone,
Works and
Rosen-
Public
of
c/o Chronicle, 25 Park PI. N. Y. 7
Dallas, Tex. law
Locke, Locke & Purnell
of
its municipal bond counsel.
as
that
Dallas-Fort
Turn¬
revenue
Texas
Turnpike Authority, as well
issues of other public bodies.
on
as
bond
issue
of
the
Previously
he
organized
the
Public Agency Legal Branch of
the
Reconstruction
Finance
Cor¬
poration at Washington, D. C. and
chief
was
for
14
counsel
is
of
of
branch
special
the
RFC.
former
a
faculties of the
Minnesota
the
was
He also
years.
counsel
bond
the
Commonwealth Corp.
Worth
pike
Edelman
Buildings.
In
capacity he recently worked
the
on
of
University of
Harvard
and
Mr.
member
Univer¬
"
Formed in Florida
sity.
TALLAHASSEE,
Fla. — The
Corporation has
Building
Lee A.
offices
with
fofmed
been
the
in
Everhart, President; S. E.
the
Board; Sidney W. Mendelson, J.
Velma
Keen," and Raymond K.
Mason, Vice-Presidents; Bernard
W. Shiell, Jr., Secretary; and Mrs.
Nell W. Goodgame, Assistant Sec¬
retary and Treasurer. Mr. Ever¬
Jr.,:. Chairman
Teague,
hart
LOS ANGELES, Calif. —James
Priest
V.
are
&
A. Irving Sherman
Shearson, Hammill
Co., 520 South Grand Avenue.
Mr.
Priest
previously
was
REPORT
CONDITION
OF
with
OF
Till#.
Jtt-VvfcVN#
wv
,
....
Upham & Co. ahd C. F. Cassell &
Co.
and
with
now
Gross, Rogers & Co.
with Harris,
previously
was
of
'•
(Special to The Financial Chronicle)
engage in a
Officers are
to
business.
'
.
With Shearson, Hammill
Commonwealth
CORTOIUTIONTRUST
,
wmsm-:
J. A. Winston Co. Opens
J.
Winston
A.
been
with
formed
Central
City,
Park
to
&
Co., Inc., has
offices
West,
in
engage
business.
of
'Officers
320
at
New
York
securities
a
Winston,
President; Albert Bern¬
Vice-President, and Irving
stein,
Bernstein,
All
Secretary-Treasurer.
formerly with Philip
were
Gordon
&
close
of
New York, New York,
business
on
October
the
of
State
York.
New
Cash,
balances
banking
and
of
other
with
institutions,
cluding
cash
in¬
baiances,
reserve
in
items
process
collection
United
$1,879,433.45
-
Government
States
obligations,
and
direct
431,321.16
60,000.00
guaranteed
has
Ltd.
Company,
and fixtures——.—
Furniture
VICTORIA, Tex.—De La Marre
and
stocks
Corporate
Opens
at
1955,
ASSETS
Co.
De La Marre Co.
5,
published in accordance with a call made
by the Superintendent of Banks pursuant
to
the provisions of the Banking Law of
A.
Joel
are
120 Broadway,
the
Other
been
404,949.09
assets
TOTAL
683,967.47
ASSETS
$3,459,671.17
„
formed with offices in the McFaddin
Building
to
business.
curities
Jacques
de la
L.
in
engage
LIABILITIES
se¬
a
Partners
are
Demand
deposits'
of
viduals; partnerships;
corporations
general
Marre,
indi¬
and
503,739.86
—
partner, and Frank H. Crain, lim¬
ited partner.
Mr. de la Marre was
TOTAL
DEPOSITS _1 $503,739.86
.
Other
formerly with Cobb & Co.
liabilities
obligations shown below)
Formed in Washington
WASHINGTON,
D.
C.
—
Merle
Thorpe, Jr. and Newton I. Steers,
subordinated
including
Governm,t Personnel Sees.
'~4;644,408.72
(not
LIABILITIES
TOTAL
CAPITAL
$2,148,148.58
ACCOUNTS
$500,000.00
Capital t_—
Surplus
325,000.00
fund
Undivided
486,522.59
profits
Jr. have formed Government Per¬
sonnel
at
Both
are
Thirtieth
Street,
De¬
•TOTAL
LIABILITIES
CAPITAL
velopment Securities Co.
♦This
with
offices
sailles
to
business.
at
3505
in
engage
Officers
South
a
are
1
COUNTS
securities
Regis
AND
ACCOUNTS
$3,459,671.17
__
institution's
capital
stock
common
total
with
consists
value
par
of
of
$500,000.00.
MEMORANDA
Assets
pledged
ether
are
I,
as
after
serves
assigned to
and
for
$105,321.16
purposes
Securities
J.
or
liabilities
secure
Ver¬
H.
shown
deduction
above
of
re¬
of
CHARLES
100.72
v
SKINNER.
J.
Treasurer
of
the above-named
institution, hereby certify.
that the above statement is true to the best
Mohr, Vice-President.
Siestas for the Oils
generally were in some¬
thing of a siesta, with occa¬
sional slips when the going
Jack Graham
Morgan and Henry A. Morgan are
conducting a securities business
my
knowledge and belief.
Morgan & Morgan Formed
DALLAS, Tex.
$1,311,522.59
W.
N.
partners in Atomic
AC¬
CAPITAL
TOTAL
Securities Co. with offices
1033
Goldbach, President; A. L. Goldbach, Secretary-Treasurer; and A.
Oils
Edward Edelman
Edel¬
since 1952
man
ing to be held today
target and it, too, was driven
down better than 20 points
Edwin L. Beck
public,
revenue
Forgan-Halsey, Stuart syndicate.
Governor William
public
other types of
contr actual
of
Phone REctor 2-9570
specialize
negotiating
on
from its 1955 best.-
This beautiful set available
its
in
with emphasis
obligations
by Glore,
revenue
harder
another
firm
cal agency and
selling drives to Allstate Inv. Corp. Formed
nudge its best price a bit
DALLAS, Tex.—Allstate Invest¬
higher. Jersey Standard Oil ment Corporation has been formed
was
the
bodies for fis¬
time out between
Canvas bound
with
Municipal De¬
partment, New
York City, He
with
Forthcoming Issue
$415 million
average
handled
Corp., 65 Broad¬
New York, have announced
agreeme n t s
Gov. Straiton to Talk
securities
recently the
pets, were recurrently
prominent on the downturns
u n t i lrt h e y finally made a
stand in mid-week. For good
group action the aircrafts
probably were the best-acting
o
the violated line semblance of
and did Pr0"
duce at least the
margins calls in the 1929
break
a
C
-
market
gen-
have been turned into
views
| The
article
Daffin
Aircrafts Best-Acting
1 d easily
continuing stop-loss and
eral
the
heavy flood
a
margin calls
per¬
Union Securities
way,
that Edwards Edelman has become
The
depressed what with all the
the 1950
The scope of the present recurrent beatings given the
when the Korean War broke correction has been such that issues by all the medical con¬
out. The 108 new lows posted the market technicians are troversy over cigarette smok¬
in one session was second now back in the limelight, and ing. For Seiberling, however,
only to the 131 that reached pretty well shuffled to the the achievement was more of
new
low ground in the late background is consideration a standout since other rubber
September break. The one- of individual issues in the issues have had their full
years,
correc¬
v
a
signal was day string of consecutive ap¬
given when there was a de- pearances at a new peak. The
Some of the declines would cline to a
closing low of 255.49 two were the only common
have been of recent record in
September, 1953, or 254.36 stocks at new highs as the
proportions if the s e v e r e on an intra-day basis. The in¬ average broke down through
fo r e a k of Sept. 26, and the dustrials
seesawed immedi- its crucial level.
i'fi
'f
nearly 32-point loss in the in- ately and began a spectacular
dustrial average, hadn't over- rise that was troubled only
There has been some timid
shadowed the subsequent sell- with minor corrections ever bidding among the tobacco
offs. The 13 points lost in one since, many of them one-day issues at times, largely be¬
*
Joins Union Securities
associated
standout in
a
all
false bear market
*
^
demanding
Thursday, October 13, 1955
.
Edward Edelman
retreat started there were few
tion.
period of two years highs list in the teeth of pres¬
els fell by the way as inves- the current advance had car- sure but also was able to do it
tors generally continued more ried the industrials
higher by four days running. General
in a mood to sell than to buy, some 230
point s, virtually Cigar did almost as well and
even at
bargain levels in some doubling the reading since a it was able to run up a threeOver
rough. The issues hadn't
in general demand for
many months and when the
was
been
excesses
STREETE
Something of
The market reaction
ought to
reason,
some
.
.
CHARLES
J.
SKINNER
Correct—Attest:
—
from offices in the Meadows
Bldg.
OAKLEIGH L. THORNE
GEORGE
RALPH
F.
LePAGE
CREWS
t-
Directors
17
(1529)
Volume
182
Number 5472
.
.
.
The Commercial and
Financial Chronicle
WHY THIS SIGN
IS YOUR
TELEVISION
FINER
experience
36 years'
RCA's
is
GUIDE TO
share in TV-
yours to
black-and-white or color
When the time comes
enjoy the most
for
you
to
created for the home, here are
make the
purchase
a
TV set and
fabulous medium of entertainment ever
facts that will help you
right decision.
«
To
in
,
pioneer and develop
black-and-white, called
practical experience, great resources and
ties in
the fields of communications
RCA
well
was
radio communications since its
ago.
research facili¬
and electronics.
qualified to do the job:
RCA has been the
experience:
J
.
television, in color as well ag
for a special combination of
recognized leader in
formation thirty-six years
Its world-wide wireless circuits, established in 1919,
development of electron tubes, laid the ground¬
and its
broadcasting in 1920... and the first nation¬
work for radio
wide radio network in 1926.
Radio
made
broadcasting led to television—and in 1939
public.
camera
universally used
resources:
has been
^
Zworykin of RCA invented the Iconoscope, or
tube, and he developed the Kinescope,
Dr. V. K.
television
one
ects ever
has
RCA
history by introducing black-and-white TV as a
service to the
now
.
as
the picture tube.
< -
Pioneering and development of
color TV
of the most challenging and expensive
undertaken by private industry. To
-"W:
proj¬
date, RCA
spent $50,000,000 on color TV research and develop¬
addition to the $50,000,000 previously spent in
ment, in
getting black-and-white TV
"off the ground" and into
service.
research facilities:
RCA has
one
of the most
com¬
plete up-to-date laboratories in the world — the David
Sarnoft Research Center at Princeton, N. J. It is the birth¬
place of compatible color television and many other no¬
table electronic developments.
m
i »
No wonder that you can
essentials
*
turn to RCA to find all of
experience.
In
the
of quality and dependability born only of
f
addition, the RCA Service Company, manned by a
of trained technicians, operates service branches in
principal television areas. No other organization is so.
thoroughly equipped to install and service your television
set, as well as any other RCA product.
corps
all
radio corporation
of america
Electronics
for
Living
18
The Commercial and Financial Chronicle
(1530)
in
Clerk
Company of Paterson, N. J., is of¬
as
fering holders of its stock of rec¬
ord Oct. 6, rights to purchase an
partment,
45,003
additional
capital stock at
of
aggregate
a
in
Treasurer
shares
subscription
The
held.
four
offer,
each
for
which is being
underwritten by
a
headed by Hayden, Stone
& Co. expires on Oct. 26. Through
the stock sale, the capital funds
group
Edward H. Dunckelmann as Cashier.
A veteran of 35 years ex-
and Augustus
James M. Trenary
appointed
Executive Vice-Presidents of the
United States Trust Company of
Martin
J.
been
have
perience
in
banking
Mr.
Dunckelmann resigned recently as
Assistant
Prior
Co.
Trust
Bankers
tional
been
Public
of
Vice-President
Assistant
an
National,
operations
charge of
in
offices,
branch
of
Na¬
he had
Trust Co.,
&
of
merger
Public
with
Trust
Bank
the
to
Bankers
of
Treasurer
following the
duties he continued
merger.
of
however, to final approval
regulating bank author¬
capital funds,
State
ities. The additional
COMPANY
TRUST
BANK
NATIONAL
STERLING
$
June 30/55
$
151,421,505
150,107.824
Sept. 30/55
•
YORK
NEW
OF
A
/"
Total
resources
132,587,237 138,305,541
Deposits
Cash
and
from
due
banks
37,026,057
32,400,537
—
U. S. Govt, security
M.
James
Martin
J.
Trenary Augustus
it
York,
announced
was
on
—
33,947,691
34.315,425
81,430,452
69,428,022
profits—
&
1,631,901
1,600,215
Undivided
Oct. 6 b.y Benjamin Strong, Presi¬
dent. Mr. Trenary
joined tne
in 1923; he has been
pany
President
since
elected
the
in
to
1949
ecutive
the
of
tne
Ex¬
in
is
He
Section
of
the
the
of
New
on
Di¬
Trust
Bankers
Banking
Law
the
Company
of
Trust
Greenwich, Conn., etc. Mr. Martin
joined the company in 1928 and
has
been
of
Vice-President
a
He
1946.
in
Trustees
since
elected to the Board
was
is
and
1953,
in
charge of all investment functions
of the Trust Company.
Mr. Mar¬
tin is Chairman of the Joint Fi¬
Committee of the Commer¬
nance
cial
Union
Group, and
of the Local
Chairman
the
Assurance
Fire
British
Boards of
Insurance
Com¬
Commercial Union As¬
Company, Limited; etc.
panies;
surance
FEDERATION
BANK
NEW
COMPANY,
Vice-President
Elbe,
Bank
ings
Brooklyn,
of
Sav¬
Y.
N.
1945, was honored on Oct.
by
fellow members of
the
11
Bank's Quarter Century Club, and
President
by
trustees
at
Hooper,
bank
other
and
Testimonial
a
W.
officials,
John
Dinner
the
at
Arion Club of
Brooklyn, in recog¬
nition
40
of
his
of service
years
with The Lincoln.
Mr.
reer
Elbe began his banking ca¬
at the age of 15, when he
joined The Lincoln Savings Bank,
Junior
as
Clerk.
that
At
time,
bank
personnel, including em¬
and officers, totaled ^13.
age of 18, during World
War I, he was in charge of the
sale of Liberty Loan Bonds and
War Savings Stamps, etc.
From
1924 to 1946 he was in charge of
the Mortgage and Real Estate De¬
ployees
the
At
partment.
For
the past
Mr. Elbe has served
23
years,
YORK
Total
resources
85,371,872
Deposits
Cash
due
and
Loans
stitute
of
he
graduated in 1921.
was
Banking—from
and
honors
have
which
Recog¬
come
to
Institute of
New York State Safe Deposit As¬
sociation, in 1947 and 1948; Chair¬
due
Banks
branches in the
in
as
Sept.
30,
amounted
of
which
share
a
maintained
ber of
shares, subject to continua¬
satisfactory earnings.
As
of
noted
page
in these columns Sept. 8,
982, the Little Falls National
Little
of
consolidated
Bank
vided
dent
NEW YORK
31,309,685
Oct.
11
1,220,296
*
1,214,484
*
Hotel
The
were
Hanover
Bank
the
15th
Commodore.
ganization's roster
including
annual
now
The
or¬
totals 783,
135
honorary
mem¬
bers.
William S. Gray, Hanover
Chairman, addressed the group.
Claude Adamson
the
club's
Charles
ner
was
new
installed
President,
Cramer headed
directors
the
as
and
Din¬
I
Committee.
The
Mr.
Marine
Western
the
the
Presi¬
of
the
Sterling
announces
the
election
of
Trust
New
Com¬
York,
Murray
at
as
been
Marine
New
Department.
on
Mr.
1945,
Moseley
Vice
Assistant
Cashier
He
*
First
Roanoke
N.
*
Co.
cf
1,
Sept. 29, the National
W.
Va., increased its capital from
Bank
dividend of
of
Berlin, N. J. to posts in
Camden,
which
recently
acquired t he Berlin
bank.
The
"Ledger" added that Dr, Leslie H.
formerly a director of
National, was appointed a
First
Camden.
formerly Ex-
ecutiveVice-Presidentand Cashier
Berlin
National/
Vice-President
to
$600,000
$300,000.
will be in
Berlin office.
The
charge of the
Woodruff J.
new
Pierce,
Vice-President
First
of
*
Drovers
by
stock
a
fice.
Alfred
W.
M.
Childs, form¬
erly Assistant Cashier
National,
was
named
Cashier of the Berlin
*
of
Berlin
Assistant
office.
Bank
$1,800,000, the enlarged capital
having been brought about by a
stock dividend of $300,000.
❖
Thomas
*
F.
An
increase
who
has
St.
Louis, Mo., has been
Vice-President
of the
bank, according to William
McDonnell, the bank's Presi¬
Mr.
Stephens started his
capital
Bank
of
of
effective
sale
of
$100,003 in the
Security National
the
Trenton,
stock
new
indicated,
N.
of- Sept.
as
J.
became
the
the
amount
capital
to
*
*
Charles G. Bauer, a retired As¬
Newark, N.
J.,
died
York
*
•
Mr.
ing
Sept.
on
18.
ton
for
the
Trust
the
stock
Safe
of
Deposit
National
Bank of New Bedford,
with common stock of
$350,000 be¬
came
effective
consolidation
the
of Sept. 21.
as
was
charter of
Bank
the
effected
First
The
National
Bedford and under
the title of the First Safe Deposit
Bank
of
New
Bedford.
The
enlarged bank, at the effec¬
tive date of the
consolidation, had
a
capital of $1,220,000 in 244,000
shares
of
common
stock, par $5
$1,220,000 and
each, surplus of
undivided profits of not less than
$260,000.
*
The
County
*
The
years.
said
"he
re¬
Vice-President
as
Officer
in
1946
to
and
become
When the Irving-
Irvington
with Fidel¬
ity Union in 1949, he became As¬
sistant
Secretary and Treasurer
and held that position until his
retirement
time
he
merged
in
has
1952.
Since
active
been
in
bank
•!*
•J*
Wm.
Gerstnecker, Treasurer
of the Pennsylvania Railroad has
been elected
men's
of
Bank
a
Director of Trades¬
and
Philadelphia.
Trust
A
Company
graduate
of
the
University of Pennsylvania
Evening School of Accounts and
Finance
and
Program
of
uate
School
the
the
of
Management
Harvard
Business
Grad¬
Admin¬
&
Trust
Oren
the
F.
H.
in
First
National
Jr., has been
Assistant
Cashier
of
appointed
was
Bank
St.
Louis,
announced
by
McDonnell. Mr. Miller
began his banking
with
in
recently
the
career
Northern
in 1953
Trust
Com¬
of Chicago,
following his
discharge from the Army.
Joseph Fistere, President of the
pany
Mallinckrodt
has
been
Chemical
elected
National
First
Director
a
Bank
Works,
in
St.
of
Louis,
The
in
first
G.
joined
Mallinckrodt
and
1947
Before
joining
Chemical
Vice-President
President
the
Works
in
1949.
Mallinckrodt
he
associ¬
was
of
reorgan¬
the
first
Bank
1950,
Com¬
President
succeeding
Lucas, the
Mr.
Lucas.
Canal
Cashier
of
elected
was
January,
Oliver
President, became Chairman
Board, but died in July of
same
year.
*
$
Following
rectors
a
!i!
meeting of the di¬
The
of
Commerce
in
National
Bank
of
Orleans
New
on
Sept. 27, Dale Graham, President,
announced the promotion of Ed¬
A.
Amar to
Vice-President,
Joseph
and of Frank J. Basile and
Knecht
President.
J.
Officer
from
Officer.
remains
dent
in
charge
Department.
Oct.
proval
Bank
4
of
the
the
of
Republic
Dallas,
Texas,
unanimous
$10,437,500
ap¬
increase
bank's capital
announced
was
Trust
*
of
voted
a
Francis
the
*
*
Trust
Vice-Presi¬
as
of
Stockholders
As¬
R. J. Emmer
Assistant
Trust
to
Doyle
National
Vice-
named
were
Cashiers and
advanced
C.
Assistant
to
J. Kenneth Butler and
Rousseau
sistant
structure, it
Karl Hoblit-
by
zelle, Chairman of the Board, and
Fred F. Florence, President of the
bank.
The
special
action
meeting
occurred
the
of
at
a
bank's
stockholders.
When
completed
following formal approval by the
Comptroller of the Currency, the
increase
will
bring
Republic's
capital and surplus to $70,000,000
and
its
total
capitalization, in¬
cluding
reserves,
to
approxi¬
mately $82,000,000.
In addition,
stock dividend of
Mr.
Fistere
Mr.
National
was
the
National
without
Director in 1945,
M.
became
The
Cashier
and
a
in 1942, became Secretary in 1944,
T.
following
Commerce
became
it has been made known by Mr.
McDonnell, the bank's President.
a
Sitges
1938
death.
was
merce
He entered
Miller,
First National
112,500 shares
will be distributed to shareholders
cost
to
them.
Along with completion of the
increase, termed by Mr. Florence
as
"the largest capital
increase
undertaken
ever
the
Southwest,"
by
bank
a
in
certain whollyRepublic will
ated with Allied Chemical & Dye
owned
affiliates of
Corporation.
pay
net
♦
*
*
Commerce
&
Trust
Louisiana
and
Company
of
Commerce
Or¬
the
Bank
noted
as
in
of
The
ip New Orleans.
consolidation
of
Bank
under
National
The
of
New
of
consolidated
our
is¬
1182, was
approved by the shareholders of
both banks on Sept. 15 and is the
first bank merger in New Orleans
in over 25 years.
Based on the
last published statements of both
banks, the consolidated institu¬
tion will have approximately $12
million of capital funds, $240 mil¬
sue
lion
tomers.
of
Sept.
22,
resources
Upon
page
and
a
dividend of
cash
$2,-
000,000 directly to the bank.
On Oct. 3 the National Bank
the
Pennsylvania Railroad in 1932
of
late
with
as a
National bank on May
20, 1933, from the Canal Bank and
Trust
Company.
Dale Graham,
in
name
R.
the
which
the
of
along
the
4,
the
was
ized
partment in December, 1953.
leans,
Madison."
Percy
Gussman's
December, 1931, and was named
Manager of the real estate de¬
that
organization work in Garfield and
with
Com¬
McCarroll and Jos. Lautenschlae-
on
istration, Mr. Gerstnecker joined
*
Bank
National
the
1910
Company
Company.
service
in
of
under
of New
National
33
National Bank.
*
common
and
according to
Vice-President
*
A consolidation of the First Na¬
tional
Bank
of
New
Bedford,
$660,000
for
also
quoted
paper
signed
office
Co.
Trust
Company
ton
with
Bauer, whc> began his bank¬
with the old Merchants
career
Co.,
Trust
President
*
in
career
in
it
$500,000 from $400,000.
and
Sellers
later became the Franklin-Amer¬
30, when the
to
raised
business
American
Building.
leader
and
group,
B.
Bank
Assistant
de¬
Louisiana
Trust
organization
M.
in
&
T.
J.
elected
of
Gussman
first President
Manager of the real estate
department
of
First
National
been
the
of
Charles
ward
*
Stephens,
per¬
trust
Maritime
Bank
of
to
ican Trust
*
*
1933.
the
National
Bank
same
opened for business Oct.
of the
#
Chicago, 111., increased its capital,
effective Sept. 23, from
$1,500,000
Camden
previously Assistant Cashier of
Berlin
National,
was
appointed
Assistant
jf
named
was
First
of
of Charleston,
in
under
National
combined
the
Louisiana
of
Effective
operation
offices
in
Bank,
*
Bank of Commerce
First
J. Montague Evans,
*
in
The
executive
who
Virginia.
McVice-
officers
partments will occupy the former
University School of Business Ad¬
ministration, and upon comple¬
tion of that program, assumed the
$300,000
of
sonnel.
Bank of
of
M.
other
The
cf
President
the Bank
of
Com¬
Executive
all
Commerce, with the
to
attend
the
Advanced
Management Program at Harvard
former officials of Berlin National
director
of
1948, leaving there in September,
Camden,
according to the Philadel¬
"Ledger,"
announced
on
Sept. 24 the appointment of four
and
of
Eugene
be
and
continue
name
1953,
J.,
of
charge
Sept.
National
phia
Berlin
on
and
will
ger.
at
Camden
Trust
&
Ewing,
in
bank
*
Bank
and
bank.
officer
became
the
President
Petersburg
-
the
at
made an
was
assignment of branch coordinator
*
I
The
associated
Trust
three years.
National Bank & Trust Co. of New
York,
*
Murray has
with
Mass.,
members
dinner attended by more than 600
active and retired employees at
the
County
Patefson
Sept. 2.
and
Assistant Secretary in the Mu¬
past
at
the
of
11,332,656
Quarter Century Club, New York,
on
the
of
was
sistant Secretary and Treasurer of
the Fidelity Union Trust Co. of
Diefendorf,
11,867,359
new
into
*
H.
nicipal Securities
in
11,343,485
11,123,945
of
8,226,G01
and undi¬
profits—
initiated
J.
& Newark Trust
security
Sixty-four
with
& Trust Co.
N.
The Newark "Evening News", was
associated with the former Clin¬
9,402,870
discounts
#
Falls,
election of William J.
from
holdings
Surplus
be
num¬
Buffalo, N. Y., has announced the
;«
&
to
1,366,047
32,007,154
U. S. Govt,
Loans
expected
the increased
on
14,307,420
*
$34,766,025 $34,027,204
Deposits
banks
$1.40
is
1,334,765
Sept. 30/55 June 30/55
due
is
stock
Virginia State Bank¬
Trust
All branches of Louisiana Bank
pany
with the
President
and
employees will continue
the positions they now
occupy.
ing The Bank of Virginia Jan. 1,
$107,632,-
rate
capital
From 1935-37 he
there until 1935.
as
and
Bank
The current annual dividend
the
the Campbell
1928, working
ing
career
with
County Bank in
Bank
continue
formerly
Presidents
ing Department, then returned to
the Campbell County Bank. Join¬
12,750.275
COMPANY,
resources
to
The Bank of Virginia
years. He began his bank¬
National
will
Bank
Oulliber
Carroll
Vice-President in
was
The
and
Graham,
pany, will become Chairman of
the Executive Committee.
John
A.
was
pany
an
and
1953
Sitges,
Louisiana
J.
000.
Savings
in
H.
as
on
7,693,293
*
Cash
N.
bank
16,935,544
profits—
TRUST
Falls,
the
of
7,129,163
discounts
CLINTON
two cities
same
Little
resources
and
17,666,876
—
&
*
Charles
—
Undivided
Association,
37,946,259
U. S. Govt, security
holdings
Activities,
Pro¬
on
1954.
from
banks
of the Subcommittee
motional
COMPANY,
36,832,379
and
Banking, N. Y. Chap¬
1938-1939; President of the
ter,
man
$40,936,598 $42,020,646
Deposits
Total
American
702,792
Sept. 30/55 June 30/55
Loans
the
36,754,882
resources—
Cash
President of
733.770
NEW YORK
Total
Association, Group V,
Savings Banks Association, 1931-
41,051.403
TRUST
Passaic
and
Paterson
he
Baronne
Dale
head of the institution and
Percy
the
Officers
profits—
UNDERWRITERS
He
Richmond from Roancke
to
dent.
9,546,671
#
branch
of
coordinator since Jan. 1, 1954.
A.
38,353,704
«
the title
held
has
and
went
Camden and will assist Mr. Evans
discounts
&
dent of the bank since Jan. 1, 1947
in the operation of the Berlin of¬
32,300,554
Undivided
October
meeting.
Mr.
has been a Vice-Presi¬
Moseley
the Board
on
11,070,886
security
holdings
of
action
of Governors of the American In¬
1932;
from
banks
U. S. Govt,
.
84,246,505
the assignment, by
the directors at their
Richmond, to
of
Commerce,
for five
■
Sept. 30/55 June 30/55
$94,211,193 $93,055,539
position of Senior Vice-President
and named Herbert C. Moseley, of
of
office at
Streets.
President
will
since
Mr. Elbe, often, in Savings Banks
circles. He was President of the
TRUST
AND
A.
Rich¬
where
Bank
*
*
Cashier of The Lincoln
nition
*
*
*
John
and
State
York
Director of
Association,
Putnam
the
American
the
of
Committee
the
Association,
Bar
to
administrative matters
Mr.
Trenary
is
Policies
vision
1950
was
Trustees
bank.
Chairman
Trust
of
Committee.
charge of
for
in
and
com¬
Vice-
a
He
1942.
Board
♦
Common
Oct. 7 created the
mond, Va., on
regular
being cleared, the bank will
eight branches in addition
to its head
*
#
of Virginia, at
The Bank
building, for which ground is
now
have
charge of
stated, will be used to meet
expanding demand for bank¬
ing accommodations experienced
in recent years.
County Bank &
Trust
has
principal
offices
in
tion
discounts
holdings
Loans
New
Treasurer,
it is
Total
THE
and
Thursday, October 13, 1955
.
new
the
well
<<
increased
be
$1,800,000 to $2,250,000 sub¬
ject,
of
will
bank
the
from
Assistant
1951
#
$28 per share on the basis of one
share
De¬
Treasury
made
April 1, 1955.
shares of $10 par
new
the
was
.
.
87,000
completion
cus¬
of
a
Ar¬
been concluded
with an underwriting group, in¬
cluding local and national invest¬
ment bankers, to underwrite the
proposed new stock issue.
It is
contemplated that Republic's cur¬
rangements have
rent dividend rate of 14 cents per
share
share
month,
per
annually,
or
$1.68
per
applicable to
all
shares to be outstanding on com¬
pletion of the increase, will
tinue,
In
Mr.
Florence
addition
to
pointed
approval
of
con¬
out.
the
plans for increased capitalization,
shareholders voted to change the
date of the regular annual meet-
4-
Volume
182
of
ing
Number 5472
shareholders,
to
second
the
third
.
The Commercial and Financial Chronicle
.
.
from
the
in
Tuesday
January of each year.
Details of
the proposals were given in our
issue of Sept. 22, page 1182.
*
*
Colorado
The
of
Bank
%
Springs
Colorado
National
Springs,
Colo.,
(loJl)
19
V
With Amos. C. Sudler
Two With Reynolds
With Coburn Middlebrook
Joins Scranton Staff
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
SAN FRANCISCO, Cal.—Jack
DENVER,
Colo. — William
H.
Thorney, Jr. has become affiliated D. Struble and Jerome A. Beck¬
with Amos C. Sudler & Co., First er
have become
affiliated
with
National Bank Building.
He was Reynolds & Co., 425 Montgomery
formerly with J. W. Hicks & Co. Street.
HARTFORD,
Miecznikowski
genbeck
are
JConn.
and
now
—
Ronald
Albert
connected
NEW HAVEN, Conn.—James J.
,
Rin-
Grady
with
Chas.
Coburn
&
Middlebrook, Incor¬
porated, 100 Trumbull Street.
joined
the
Scranton
&
has
W.-
Church
Street,
New York
Stock
staff
209
members of
Exchange.
the
increased its capital as of Sept. 21
from
$300,000 to $500,000.
additional
capital,
Of the
$150,000
was
realized by the sale of new stock,
while the $50,000 additional re¬
sulted from
stock dividend.
a
❖
As of
•■
*
Sept. 16, the capital of the
United
San
❖.
National
States
of
Bank
Diego, Calif., became $2,000,-
000, having been increased to that
amount
from-$1,785,000
sult of the sale of
stock.
■
as
re¬
a
$215,000 of
new
;
❖
❖
#
First Western Bank & Trust Co.
of
San
Francisco, has applied to
Superintendent of Banks
permission to open an office
the State
for
in
This
Barbara-Crenshaw
Santa
the
Shopping
is
center
growing
Angeles.
Angeles.
Los
Center,
the
in
heart
of
a
in metropolitan Los
The First Western has
other office in that part of the
no
area
city..
-»>v
®
The
Bank
Francisco,
Oakland
Office
Nov.
1
President,
its
near
site,
Elliott
announced
has been re¬
supervisory .author¬
office
from
ities, he said.
It will
Franklin
at
2031
H.
Bolman,
Manager
be
San
Permission to open the
Oct. 3.
temporary
fice.
of
temporary
a
building
McAllister,
ceived
*
-
will open
permanent
on
£
California
of
Mr.
be located
Street.
Robert
Vice-President, will
of the Oakland Of¬
Bolman
formerly
was
Vice-President and Director of
Oakland
bank,
Executive
was
before
and
Also
to
be
land
Office
and
James
an
that
Vice-President
the Pasadena-First National
of
Bank.
assigned to the Oak¬
are George S. Pearce
C.
Percy, Assistant
•
"
Cashiers; I. B. Coffin, who will
the consumer credit de¬
partment; and William T. McClean,
in charge of the Real
Estate Department.
manage
:J:
if
%
National
Harbor
The
of
Bank
with
Wash.,
Aberdeen,
common
capital of $200,000 was absorbed,
19 by the Seattle-
effective Sept.
National
First
Bank
of
Seattle,
Wash., according to advices from
the
the
office
the
/
,
/
Currency in the weekly Bul¬
letin
v
of
of Oct.
The
*
*
mmtfct
Bank
Royal
office
(head
Comptroller of
3.
*
*
of
Canada
has
Montreal)
an¬
nounced the
appointment of H. M.
Grindell, Manager of its Havana
Branch since 1946, to be Super¬
visor
minican
Puerto
Republic,
the
Trujillo,
created
Haiti
D.
is
the
and
puzzle
and
This
R.
post
there's no
Do¬
Rico, with headquarters in
Ciudad
newly
in
Branches
of
a
when
MANAGEMENT can fit the pieces
ap¬
pointment
serves
to emphasize
increasing importance of the
the
business
Bank's
Royal
three
countries.
formerly
G.
Trujillo,
Puerto
Rico
these
R.
Conrad,
Inspector
at
Resident
Ciudad
in
D. R., becomes
Manager of the bank's San Juan,
the
late
E.
Branch,
H.
O.
Thorne.
P.
H.
Easton, formerly Manager at Ha¬
Vedado, 23rd & P. Branch,
been named Mahager at Ha¬
has
vana
Branch.
Mr.
Grindell,
joined the bank in 1920.
After
serving
at
several
Canadian
branches, he assumed his first
signment in Latin
America
main
since 1946.
of
as¬
in
He has been Manager of the
bank's
branch
in
Mr. Conrad is
Province
the
of
together quickly, efficiently
job which calls for prompt
to
-SUMMARY
business fall
management.
Income
Havana
a
Nova
native
forms and
procedures are engineered to meet the vital need
for fast, accurate reports—placed on top manage¬
ment desks in time to capitalize on opportunity,
Royal McBee machines, business
correct faults.
Net
from
after
Profit
$84^398,114
$ 7,446,067
$ 6,304,121
Products,
Depreciation but
before Federal Taxes
Income.
on
In¬
3,813,00(
come
Profit
after
Provision
interested in seeing the full report of
Royal McBee for the fiscal year ended July 31, 1955,
write Secretary,. Royal McBee Corporation.
of
1954
$84,694,569
Sales
etc
Provision for Federal Taxes on
Net
If you are
RESULTS-
1955
operating information
Services,
or
OF
ended July 31, 1955, compared with previous year
for year
and economically is a
succeeding
vana,
1924.
Making- the "pieces" of today's
for
3,513.(
Depreciation and
Federal
Taxes
Income
on
...
$ 3,633,067
$ 2.791,121
$2.45
$1,83
^
Earned per
Share—Common Stock.
(After
Year-End Audit)
Scotia,
Can., where he joined the bank in
1919. Mr. Easton joined the bank
Province
in
the
in
1918.
Joins
of
Ontario, Can.,
Reynolds Staff
(Special to The Financial Chronicle)
SANTA
ROSA, Calif.—Edward
S. Fonda is now with Reynolds &
Co., American Trust Building.
ROYAL MPBEE
2 PARK
CORPORATION
AVENUE, NEW YORK 16, N. Y.
of
Co.,
t
20
The Commercial and Financial Chronicle
(1532)
Continued
Utility Securities
The
By OWEN ELY
had
and steam to the City of
farming area
belt along Lake Ontario.
Rochester, which is the home of Eastman Kodak and the third
adjacent areas, including the fertile
jn the Genesee River Valley and the fruit
manufacturing
produce light consumer
rather than heavy capital goods, the business in this area is rela¬
tively stable. This is reflected in the favorable local employment
situation, said to be the best in New York State. Rochester has
an excellent supply of good water which has encouraged industries
like Gerbers' Baby Foods to move into the area.
Since
these
of
industrial and com¬
developments now
City of Rochester is active in civic,
Tne
mercial
and
developments,
the
among
new
complete new civic center, an auditorium, inner
traffic loops and arterial highways, an expanding water
projected
are
outer
anu
many
wider
The population
has increased about 8% since
1950 and now equals 527,000. While the city itself gained only about
3%, the suburban area increased 19%. Some 28 new manufacturing
concerns have come into the company's territory since 1950, and
36 existing concerns have enlarged t..eir plant facilities.
President Beebee recently stated: "If you study our operations
served is showing excellent
area
growth.
in the metropolitan Rocnester area
along the Valley of the Genesee River, you will become convinced
we
are
providing aJl the good things that subsidized TVA
its
from
can
to
source
at Lake Ontario
its mouth
be economically justified.
waters that help
head¬
generation of hydro
We have dams at the River
in flood control and in the
to our farms, homes,
that they can use our services to their
Our Home Service Department has just won the
provide engineering services
We
power.
stores
to the extent that
and industries, so
nest
interests.
first
place
for outstanding service to our cus¬
Our 1954 Annual Report has just been awarded second
tomers.
national
award
place in its classification by 'Financial World'."
1954 revenues were about 60%
electric, 33%
gas
and 7%
straight natural gas in
the City of Rochester reformed natural
The gas division has converted to
steam.
the suburban areas, but in
ments,
If
intensified.
national
our
product was at
of $358 billion. A
annual rate
an
later it
year
$385
was
about 71/2%
billion,
or
At present it
larger.
is $390 billion, if not higher. The
level of activity in 1953, when the
rate of
its
output
$369 billion at
was
highest, is well behind
Another comprehensive measure
of
economic
activity is civilian
In September 1953
employment.
about
62 Mj
million
work.
at
were
men
employment
but
brought
a
September
by
any
Still
over
private
In
ment.
comprehensive
activity is
income
of
industry
the
disbursed
and
second
incomes
1953
A
of
slightly
govern¬
quarter of
being
dis¬
were
bursed to individuals at
rate
in¬
and
employment
2% million
economic
amount
by
a
another
of
measure
the
later
little lower,
have
again
year
substantially higher than
time in 1953.
now
at
wo¬
vigorous rise. Between
1954 and
September
civilian
1955
creased
is
was
A
months
recent
and
men
$290 billion.
over
later, despite the contrac¬
year
tion of economic activity, personal
incomes were a half billion higher.;
The recent expansion has
income
disbursements
brought
to
an
nual rate of $310 billion.
increase
in
dollar
an¬
And the
during
income
the past two years has been gen¬
this
tions
the
expanding
in
terms
Miscellaneous
economic
trouble
The
__—
Purchase capacity
329,000
23,000
19,000
available.
available
Reserve
Electric
Power Pool,
—
margin
facilities
are
,
i~
j
and
extensive than it
of 1953.
is excellent as indicated during the
farm
has been
steadily from 60% to
share
while showing
Texas—S-M Securi¬
ties Corporation has been formed
with offices at 2525 Carlisle to
DALLAS,
engage
in
Officers
are
a
securities
business.
Russell T. Spears, Jr.,
President;
Clark
M.
Vice-President;
Jean
berg, Secretary.
Matthews,
A.
Stein¬
Morgan Co. of Ogden
OGDEN, Utah—Morgan & Com¬
pany
with
of Ogden has been formed
offices at 2536 Washington
Boulevard
ties
to
business.
ber R.
engage
in
Partners
a
securi¬
are
Lam-
McGrath, John H. Morgan,
branches
of
of
Jr., J. Merrill Bean, and John C.
is
are
of
diverse
our
all
agricul¬
full
measure
enjoying
high,
a
not
prosperity.
Obstinate surpluses
have tended to
or 'reduce
growers'' in¬
Droughts,
freezes,
and
several
restrict
comes.
floods
crops
ets
crops
have
havoc
wreaked
in scattered sections.
of
well
relative
on
Pock¬
a
challenge to
citizenry
conditions
industries
—
how
under
and
an
to
which
intelli¬
develop
lagging
join in
the economic advance, how to ex¬
tend the good times, and how to
improve the quality of living. As
everyone knows, the response to
this challenge has often been in¬
adequate in the past. Time and
again, in, our own country and
areas
may
other nations, monetary inflation
or
business depression have dis¬
rupted economic life and brought
hardships to people.
Experience teaches that pros¬
perity often stimulates practices
which, unless corrective measures
are taken in time, will eventually
result in its discontinuance.
nation
approaches
As
a
full
employ¬
ment of its resources, it becomes
more difficult to
expand produc¬
tion.
Here and there, in a widen¬
ing circle,
shortages of materials
and they can¬
labor develop,
not be remedied promptly.
Wage
rates, unit costs of production, and
prices
of
have
spectacularly, the
con¬
narrow
some
of
late
average of
industrial prices is merely 2 or 3%
above a year ago. The average of
less and
prices has risen still
the average
prices
leadership.
has
These
Government Measures
of
Governmental
Unpopular
of
measures
consumer
tain
almost
per¬
are
significant signs of
in the struggle to main¬
progress
mon¬
remained
conditions
of sustained
pros¬
etary and fiscal restraint are too
perity
austere to be popular.
not conclusive with respect to the
facturer who
to
sees
The
opportunity
an
his activities
expand
manu¬
why his bank is
by
than
he
requested.
homebuilder
the
in
pant
the
that
economic
shortage of credit
instance
first
as
or
matter,
in
a
the
restriction
has been
government
process
appears
a
opportunities.
own
future,
failure
had
on
When the
restraining
to accomplish
planned.
been
What individuals who
the
all
that
reason
a
;
Across
have
years many factors 5*
quietly adding to the *
strength of
current
our
the
of population, the
scientific knowledge,
upsurge
growth
of
the onrush of
technology, the rapid
of
pace
condi¬
broadening
prosperity is
resources,
money
the
on
not on
credit.
or
If
scramble
a
for
limited
the
of business competition, the
6f the middle class,
insistent
earn
velopment
match
must
increased, this infla¬
would only be
process
would
devices
be
taking
a
that all too often has ended
disaster.
if
prosperity by
illusory solutions.
such
became
that
clear
the
that
and
were
speculative
that
people
be
basic
think
are
to
are
to
four
prosperity.
A
involving actions
by numerous agencies, was put
into effect, with a view to moder¬
ating the growth of private credit,
protecting its quality, maintain¬
ing
taxes,
and
bringing
ex¬
penditures into better balance with
revenues.
of
our
Since the requirements
national security put severe
limits
on
reductions
expenditure,
necessity fell
Excesses
Thanks
though
we
to
a
in
Federal
heavy emphasis of
on
monetary policy.
Being
these
have
Checked
measures,
not
escaped
noteworthy in
al¬
the
first
place,
second
third
nual
quarter
of
rate
of
and
1954
quarter of this
Federal
year
the
the
an¬
spending on
reduced by
was
In the meantime,
consumer
spending in¬
by $19 billion, the rate of
investment increased by
nearly $15 billion, and the rate of
private
State
and
local
spending
other S3 billion.
If
we
rose
go
an¬
back to
1953, the reduced reliance of
our
economy on Federal expenditures
becomes still clearer. Between the
second
the
quarter
of
that
third quarter of
nual
rate
goods
of
and
$15
Federal
services
billion,
and
year
1955, the
an¬
spending
on
declined
by
while
spending
by the rest of the economic com¬
munity increased by $37
Thus, in the short span
of
degree
the activities
creased
years
considerable
recent
citizens, not by exten¬
the rate of
ceeded
a
our
sive
spending programs of the
Federal Government. Between the
tirely the excesses of prosperity
during the past year, we have suc¬
to
the
expansion has been achieved pre¬
over
en¬
to
situation.
about $3 billion.
time of
These
progress, but I
elements of strength
goods and services
unified program,
in¬
and
continue
our
especially
In
will
policy
incentives
flourish.
and
are
arise
a
public
enterprise, innovation,
factors
gradually and yet firmly enough
to curb the excesses that so easily
in
World,
prosperity,
protect economic
dominantly through
began applying restraints,
re¬
understand¬
of private
emerging,, the Federal Gov¬
ernment
of
stable
a
growing
economy
tendencies
to
to
the
Western
avoiding
Once it
approaching full employment
was
the
current
of
markets
mass
the
of
vestment
This year we have met the chal¬
lenge
people
production,
maintain
to
ing
speeded up. A government that
sought to prolong prosperity by
of
mass
building
of
the general recognition of govern¬
ment's
responsibility in helping
If taxes were
reduced and ex¬
cumulative
a
desire
and live better, the de¬
more
simultaneously
in
to
the
improved
control
inventories, the intensified
ding up of prices.
road
used
we
opment of investment budgets by
and
such
what
fixed capital, the devel¬
as
is that
and
penditures
fundamen¬
tally an expression of their cumu¬
lating force. I need only mention
bid¬
tionary
is
the "
and
economy,
expansion
under
is already working
close to capacity, the consequence
be
develop-1
the
been
over
easy
resources
economic
Basis of Economic Strength
v
realize
of
.
must ;
larger perspective.
in
economy
would
are
industry,
terms were avail¬
everyone at a time when
to
also
we
ments in
to
tions of high
on
they
see
shortage
side of physical
side
If
attempt to-
can
the banker. To egch partici¬
c^n
his
Nor
merchant
or
for
Nor,
consumer.
times.
our
short of funds
so
that he must put up with a smaller
loan
in
immediate
bor¬
rowing cannot always understand
poverty, urban as
as rural, are still to be found.
period of general prosperity
presents
and
Adamson.
to
has
a
fectly steady.
able
however, permit
developments
products
ture
gent
S-M Securities Opens
not,
favorable
us into a state of complacency.
Though the domestic demand for
-A
•
able to reduce its. operating ratio
55% in the past five years. Earnings per
some irregularity, have increased from
$2 31 in 1945 to an estimated $3.30 this year (President Beebee is
hopeful of bettering the budget figure or $3.28 slightly, especially
if hydro conditions improve). Late this year or early next year
the company proposes to issue common stock, but share earnings
are expected
to absorb this dilution quite substantially in 1956.
At the recent price around 46 (range this year about 48-42)
and based on the current dividend rate of $2.24, the stock yields
about 4.9%.
Based on estimated 1955 earnings around $3.30, the
price-earnings ratio is 14. These figures company with industry
averages of about 4.9% and 15 times.
The equity ratio is about
31%, but should improve to 35% with the new issue.
company
must
Fifth, the
prices
materials
Federal Government must assume
the
Complacent
lull
hurricane emergencies.
The
in the
was
the be¬
and
within
the
all wholesale
industrial
and financial institutions that the
fashion fail
'
Employee esprit de corps
While
widely diffused among business
firms, trade unions, consumers,
basic
We
recent hurricanes (Connie
^
range.
of
move
risen
the
these
which improves operating economies. The company's
in Rochester are largely underground, which has
of 1957.
to
everyone's real interest and,
a sense is everyone's
responsibility. But it is precisely
because this responsibility is so
therefore, in
this
286,000
'19%
plants, now less important
than formerly, have been handicapped receintly by record drought.
The company expects continued growth in the service area
and is planning to spend over $100 million in a record construc¬
tion program over the next five years (about $17 million is being
spent this year). The program includes a fourth steam generating
unit at Russell Station in Greece to be completed in the sum¬
mer
tinued
is to
credit
interconnected in the New York State
proven a substantial advantage with
did only $60,000 damage). The hydro
level
average
inflationary
of
developments and their aftermath
a
summer
lines
electric
the first of this year
the
obsolescence
352,000
capacity
Maximum annual load
the hands of the
public increased only 2% between
regard
Must Not Be
Total
and currency in
the growth of credit, it seems nat¬
more
Totals
newly created money.
allowing for seasonal fac¬
tors, the sum of demand deposits
ginning of September.
prevention
con¬
a
ural to blame the government for
Many factories,
shops are working
overtime. Indeed, overtime is even
310,000
342,000
Hydro plants
all
laid
is
other
and
from
not
later
for
banks
Even
securely.
more
mines,
192,000
293,000
49,000
Total —i-
op¬
groundwork
redfcnt
rapid rate, the loan
funds are coming preponderantly
from
past and
current
savings,
people
borrow
extensively
to
speculate in securities or real es¬
the
commercial
tinuing at
warps
Employment is high. Profits
satisfactory. Investment is go¬
ing forward at a good pace. Ex¬
cept in some scattered localities,
unemployment is close to an irre¬
112,000
6,000
11,000
by
judgment to the
point where the quality of credit
is allowed to deteriorate, or where
tate,
moderate and in
financial institutions has been
will
mounting
a
important
some
has
ity.
140,000.
_
,—
If
be accentuated.
instalment loans
by
stopped.
Fourth, al¬
though the total expansion of loans
supply
services
and
been
months
direction,
commodities
of
has
monetary
physical
made
lenders, though by no means all..
Third, the growth of brokers' loans
on
every
the
and
loans
consumer
being
be
to
mortgage loans is
The same is true
of the
institu¬
between
imbalance
demand
apt
financial
If
keep
liberal
is
process
new
under way.
now
are
KW
Capability
142,000
plant at Greece-—-*
Rochester
quality of
and
expecting the advance
prices to continue, rush to buy
beyond
their
current
require¬
ducible minimum.
Steam
businessmen
consumers,
annual
an
is supplied (about 47% of output last year was straight natural
uine, since average prices in con¬
gas, 52% mixed natural gas, and 1% blue gas). Gas was purchased
sumer
markets have been steady
lrom New York State Natural Gas Corp., and there is an erper- ^
While taxes have,been lower.
gency connection with Tennessee Gas Transmission.
Service »nd'V
Thus, whether We observe eco¬
supply arc s0 adequate that there is no danger of cut-offs in cold
nomic
activity at the stage of
weat.er, and Ww industries are taking gas without "interruptible"
production, or of employment, or
contracts.
of income disbursement, we find
Tne capacity of electric generating stations is as follows:
evidence of progress and prosper¬
Nameplate
apparently run its course. Sec¬
ond, some improvement in the
in
timism
us.
gas
KW
front.
1954
that
purports to provide in its area, and in audition we are carrying
our
fair share of taxes.
We have harnessed the Genesee River
have of economic activity
we
is the gross national product—that
is, the dollar value of the nation's
toiai
output of commodities and
services. In the second quarter of
a
system, and new hotels, schools, bridges, hospitals and churches.
Home building has been extremely active, with new groups of
homes unaer construction practically dotting the metropolitan area.
Tne
that
beyond
economy
First,
tendency toward
liberal credit terms,
which existed several months ago,
prices tend to rise. Since they do
so unevenly, profits are squeezed,
first in a few industries, then on a
our
Let me
widespread
has
The most comprehensive measure
Rochester Gas & Electric Corporation
establishments.
keeping tnem in cneck.
increasingly
Challenge of Prosperity
the crest of the Korean War boom.
The company supplies electricity, gas
largest city in the state, has about 800 diversified
carried
Thursday, October 13, 1955
.
mention several salient facts.
the
Public
Rochester and
in
from first page
..
a
our
billion.
of
two
substantial transformation
economy
has taken place.
o
Volume
Number 5472
182
among
have taken the initiative to make
jobs for
relying
be
another, instead of
the Federal Govern¬
one
on
expanding income
shared widely among the
is being
people, and that is another pillar
our current prosperity.
We are
of
spending
urban
of
just
risen
generally
Farm
have
have
proprietors
been
less
be
ready to
whole
the
on
as
adapt
it could stop short of what
policies are means
to the attainment of
perity,
late
of
appreciably.
and
from
and
is needed. Such
The earnings
power.
workers
to
policies promptly to them. A
program of monetary and fiscal
restraints could be carried too far,
avoiding excessive concentrations
of
^changes in economic
may be confident
the near future if
means,
we
our
nation's
The
alert
conditions
do it for them.
ment to
line
fight
That
other things, that
The
not
ends
a
in
occurring in the first place,
principle has of late ruled,
That
and
that the best way to
recession is to prevent it
a
it
must
continue to rule,
stated
national
earlier
product
our
gross
reached
We have
ter.
themselves.
threshold
of
a
thus arrived at the
$400
billion
and
to
manitarian
econ¬
and
if
with
reckon
to
resist
omy.
The challenge posed by to¬
day's
prosperity
either recession
to
cross
ter is conducting a securities busi¬
this
may
any
develop
or
from offices at 5012 Almeda
under
the
firm
name
tend¬
toward
H. C. Schmidt
Opens
PHILADELPHIA, Pa.
ties
business
from
pursuits, though many are
sharing in the increase of employment opportunities off
Labor income—that is,
the
the
farm.
of
sum
salaries, social security
benefits, and related payments—
wages,
amounted to 75%
of the total dis¬
GOING PLACES
bursement of personal incomes in
the
first
quarter
Since
1954.
of
higher than it has
now
the nation's rivers
with Cities Service...
then this fraction has risen to 76%
and is
on
ever
been.
Inventories
Another
the
for
in
strength
is that, ex¬
agricultural com¬
the
modities
mm
Excessive
of
situation
current
cept
Not
factor
which
have piled up in
warehouses, inven¬
tories generally bear a favorable
governmental
relation
The
the
to
nation's
in
recovery
been
business.
has
production
accompanied by
increase
of manufacturers' inventories, but
the preponderant part of the in¬
crease
has been in goods locked
up
in
the
productive
process.
There
is
an
little evidence
of
specu¬
lative accumulation of inventories
'
of
materials
raw
:t)y either
finished goods
or
manufacturers or dis¬
Although the nation's
tributors.
aggregate business is
signifi¬
now
cantly larger than at the peak of
the
1953,
the
hands
which
a
holdings
inventory
Even
smaller.
the
new
automobile
of
are
in
cars
dealers,
while ago seemed exces¬
sive, are now below a month's
supply. The inventory position of
the
housing
industry
is
also
broadly favorable, despite the ex¬
tensive boom in residential build¬
there has
ing.' True,
been
over¬
few local areas. But
nation as a whole, the va¬
building in
in the
cancies
about
a
available
now
2.3%
the
of
This
dwellings.
what
to
figure
stock
is
some¬
higher
need
only
of
are
total
than it has been in
recent years, but nevertheless falls
short ofnthe1 reserve that people
shift
their
housing
ac¬
excessive
without
commodations
trouble.
Still
another favorable factor is
the
that
expansion
current
been occurring in an
growing production
in
the
World.
Free
has
environment
of
and trade
Western
Eu¬
in particular, has gained a
level of economic well-being hith¬
rope,
erto
unknown
on
Continent.
the
Production and incomes have been
rising rapidly. Unemployment has
disappeared
virtually
in
Great
and is low everywhere
except in Southern Italy. Barriers
Britain,
to dollar trade and currency move¬
ments have become fewer and less
Private - enterprise ajnd
.'competitive - markets-"are/ again
.onerous.-
,
7+4 .widely. respectedV" Th esql mprOve~
;ments in conditions, abroad, have
_"reinigfeing «our^prpsperit^:
"
at
£
'*?i$ ^dstAct^ Presvent ^Recession;:
:
;
^^^/We-must recoghizev&w^veuthat
in
a
an economy like
ours, poised on
high plateau, neither the threat
of
inflation
be
ever
a
nor
very
world
in
of
recession
distant.
which
can
We live in
the
sources
of
Cities Service
move
economic
and
our
change, both domestic
foreign, are many. When both
political parties joined in the
Congress
to
whelming
ment
we
as
the
separates the
the
one
inflation
1946,
a
people
narrow
swamps of
over¬
an
the
henceforth
on
by
of
Act
resolved
pass
majority
petroleum products travel by fast supertankers...they also
by plodding barge over the nation's inland waterways from
refineries to major midwest
over
land and underground
in
the other.
in record quantity, to meet a record customer demand.
effect
travel
road
that
CITIES
recession,
side, from the cliffs of
on
Cities Service
distribution centers...today they are traveling over water,
Employ¬
to
If
we
are
to stay firmly on this narrow road,
.the Federal Government must pur¬
monetary, fiscal, and house¬
keeping policies with skill and
sue
@
A Growth
Number 14 of
a
series
Henry
offices at
Walnut Street.
inflation.
—
C. Schmidt is conducting a securi¬
main
,
Ritter
age,
their
fortunate in
of
Investment C®.
continue
minds is the
is
our
government
only rigidity that we can af¬
our
HOUSTON, Tex.—John R. Rit¬
together
encies
ford to admit to
of
citizens
courageously
that
the hu¬
with
impulses
private
their
if they
enterprise,
21'
Forms Ritter Inv. Co.
well
an
annual rate of $390 billion or bet¬
stable pros¬
to
initiative
continue
that
has
continue
go
ness
our
governmental policies.
I
and
beyond it. We
of doing so in
public policies
encourage individual
principle
must
circumspection.
increasing scale, Americans
On an
(1533)
The Commercial and Financial Chronicle
.
.
.
SERVICE
Company
1401
52
The Commercial and Financial Chronicle
(1534)
they
Save
Sterling
ment's
to the present,
up
be "anything
to
LONDON, Eng.—During recent
months some of the best brains
and
of
many
brains
been
have
Britain
ol
best
second
the
in
the
of
the
ment
to
make
out
on
breaking
any eggs. The
need for a
drastic
the
accentuation
Each indus¬
an
unanswerable
an
ground that they
dollar
and
Inc.
investment
an
shares
000
of
common
per
it,
dol¬
are
Oct.
on
of 240,-
10
Copperweld
Steel
share.
The
the
stock
priced
$25
at
proceeds
from
the
sale of
stock, together with
earnings and privately
borrowed funds of
$5,500,000, will
be used by Copperweld to finance
modernization
a
and
expected
expansion
to
Hotel
facilities, reduce
cago,
costs,
that they are
industry which is deprived
the
chance
to
develop, etc.
or
Taken in
interfering with
isolation, the
against
case
man¬
increase yields
broaden the company's prod¬
and
uct base.
gaged principally in the manufac¬
theless, each
production
ture
time
time
Never-
pro¬
posal is put forward that is liable
to
be
effective
the
mere
idea
arouses
storm
a
of
interested
some
protest
cut
inflation
being,
take
to
otherwise intelligent
people really
imagine that it would be possible
resistance
bulk
of
ing
inflation
setback
a
consumer
in
goods
penditure.
without
the
by
the word "unemployment"
though it is inconceivable to
check inflation without a mod¬
of
it.
In
spending power
materially reduced to a
be
tion
of
overtime.
But
the
apparent
Government
to
abstain
making drastic cuts.
employers
The
them
for
Up to now, there have been
to
have
produce
far
gone
the
Oct.
4,
and
the
at
Butler
Conservative
ernment's
all
the
two days later,
reaffirmed the Gov¬
determination to take
necessary
announcement
The
measures.
of
the
measures
criticism.
The
of
urgency
the
steps
and of their an¬
nouncement should have prevailed
over
the
political necessity for
necessary
humoring
Parliament that is al¬
a
jealous in
ways
of
safeguarding
privilege of being the first
informed about major de¬
its
to
be
cisions.
than
However, it is better late
ment
sures
on
and
never,
of the
new
Oct.
25
great interest.
tent of these
fate
of
the
announce¬
series
is
of
mea¬
awaited
with
The nature and
that will
sterling
ex¬
will be the
measures
test
supreme
the
the
determine
and
of
Mr.
Butler himself.
Between
now
and
the
reassem¬
is
bear
on
likely
the
various
from
to
be
interests
pres¬
brought
Government
to
by
prevent
to
the
it
adopting sufficiently drastic
remedies
that
would
affect
their
respective
spheres. Mr. Butler
foreshadowed substantial cuts in
Government expenditure. The
Op¬
position and
the
Trade
Union
Council are likely to move heaven
ond
earth
services
lay
in
are
the
to
ensure
that
not affected.
proposed cuts provides
social
The de¬
announcement
an
of
the
oppor¬
months
various
of
in¬
Govern¬
the
building,
etc.
The
rail¬
been
undertaken, and that
too
much
has
some
of
these commitments have to be de¬
ferred in snite of the
unpopularity
of
decisions.
such
It
remains
the
be
to
Government
whether
seen
will
take
action
to reinforce the present moral ban
dividend
on
face of
increases.
On
the
it, the adoption of effective
deflationary measures would ob¬
viate the necessity for dividend
limitations, because profits are
likely
fall
to
Butler
is
too
however,
credit
in
not
for
any
good
to
the
a
Mr.
case.
politician,
want
to
claim
Government
reversal of the trend
of
increases.
It's
in the absence of
any
tation by the Chancellor
even
Exchequer,
true,
exhor¬
of
the
most
companies will
have to abstain from
raising their
dividends, and many of them may
have
it is
to
to
cut
their
dividends.
But
time-honored political game
go
through the gestures of
a
pushing
open
already ajar.
the
door
which
is
moral
pressure
and
in the
changed circumstances
effective,
be
able
will
&
Co.; Bache & Co.; A. G. Becker
Co.
&
Donald
to
that Mr. Butler will
claim
credit
for
the
result.
Allowing for all these consider¬
ations, the prospects of the London
Stock
&
Co.;
thony
i
Reports
Fund
Nuclear
&
re¬
the addition of Lindsay
Chemical Corporation to its port¬
folio in August. "In 10 years," the
Fund
commented, "Lindsay has
emerged from a company in a
ported
field
semi-somnolent
supplying
curiosity metals to the position of
a
concern
with rare earths.
A
the Atomic Energy
with
contract
Commission," the Fund continued,
"to
supply thorium highlights this
change.
Lindsay is the leading
of thorium."
August, the Fund said it had
processor
In
increased its
in
ings
stock hold¬
common
Instru¬
Taylor
duPont,
ments, American Cyanamid, Good¬
Tire
&
Rubber,
Allied
Chemical, Radio Corp., Sylvania
year
Electric
Philco.
and
purchases, the Fund
with
vested
64%
-After
was
of
carrying
companies
these
95% in¬
assets
in
Exchange
during
the
next
few months
appear to be anything
but favorable. Mr. Butler and the
CHICAGO,
is
Co.,
La
New
now
111.
—
with
Charles
A.
G.
120
L.
and
Midwest
(Special to The Financial Chronicle)
BATON
ROUGE, La.—Henry B.
Government cannot afford to ab¬
Nesom has been added to the'staff
of Federated
tionary
the
measures.
measures
prove
In
so
far
as
to be effective
tion,
Securities
Louisiana
Building.
has
plus
Bank
soilpay
immediately."
$1
things
from
wage
hour
per
low
reduce the
role
agriculture
rather
"if
produce
than
for
with
135
of
at 90%
unwise
of
all
our mar¬
as
he
mulation
long
257
is
still
efficient
Hobdy is
making
U.
S.
farms
the last 15
per
has
vears.
still
are
to help fi¬
in. agricul¬
efficiency," he declared.
"Production
(
hour on
up 78% in
man
gone
in
1
—
R.
B.
with Cosmopolitan
Investment
Corporation,
D. N. Silverman Adds
NEW
ORLEANS, La.—Paul
Habace
has
been
added
This has been due
E.
the
to
staff of D. N. Silverman
Building
the
New
Co., Inc.,
Arcade, members
Orleans
Stock
Ex¬
change.
farm
Bankers gener¬
well afford
improvements
Company
ROUGE, La.
now
National
of
They
money.
can
nance
tural
some
good risk.
formerly with
soon
are
Ex¬
Street.
2907 Laurel Street.
accu¬
good
farmers
was
and
Stock
Short
(Special to The Financial Chronicle)
customers
for banks. Mr. Shuman said.
are
West
Blumberg
Shell
forcing
^
(Special to The Financial Chronicle)
Joins Frank Keith Staff
(Special Co The Financial Chronicle)
spite of the cost-price squeeze,
farmers
Midwest
With Cosmopolitan In v.
will
run
Harris, Hall &
;
the
income."
said,
"could
huge surplus
that
and
Cincinnati.
prices downward."
ally
Co.
of
Miss
purchase
pro¬
needed adjust¬
the
in
the
a
&
change,
Mr. Shuman called for emphasis
still
Exchanges. Mr. Madpreviously with Dean
was
bers
a
expansion is not in
best interests of
delay
Company,
&
Salle Street, mem¬
New York and Mid¬
Westheimer
further reduce farm
In
the
BATON
and
Blair
La
LEXINGTON, Ky. — Sara H.
Blumberg has joined the staff of
Russell, Long & Company, mem¬
"High, rigid price supports, sub¬
sidy or income payments, and spe¬
grams
A.
connected
Russell, Long Adds
farmers*
ments
Stanford
—
(Special to The Financial Chronicle)
fixing of prices
government
Blair
we
long-time
cial
of
Witter
agricultural
further
the
op¬
Company.
plant is
overexpanded," he said. "Any gov¬
ernment program which encour¬
ages
is
become
William
son
parity.
"The total
agriculture
west Stock
government
"We have lost much of
has
South
bers
storage bins.
result
in
CHICAGO, 111.
Madson
the
ket both at home ?nd abroad
essential part
the problem of
an
Joins William
consumer mar¬
for
because
(Special to The Financial Chronicle)
of government in
and
rapidly expanding
ket
said,
a
income
of
recent
The future of agriculture is still
Shuman
economy
portunity for employment off the
increases.
agriculture favor in¬
in
wages
based on in¬
bright, Mr.
our
farm."
in
creases
not
fearful
surpluses, we'd
our
the solution to
of
round of industrial wage
"We
also
are
operating at full steam.
cerns us,
75
one
was
that led to the
had
would
business is bad, there is
tendency for ponulation
to back up on the farm. This con¬
always
"Again the government must ac¬
cept some responsibility for this
situation, as the recent increase
the
he
we
"When
rising tide of economic
minimum
if
production costs.
as
farmers
not
were
"Farmers are squeezed between
falling farm prices and rising costs
of machinery, fertilizer, and other
supplies.
to
price
inflation,"
that
be much worse off if
prosperity.
the
general
prices
fast
recession. With
sur¬
products which now
prevent farmers from sharing in
Corpora¬
National
fi¬
that overzealous efforts to prevent
inflation might touch off a serious
farm
the present
farm
as
"But
been
factor in the accumulation of
"The
With Federated Sees.
certain
want
know
we
respond
reduced," he said.
an
important
were
"This
Exchanges.
stain from
taking effective defla¬
demands
South
Stock
that
"In the present surnlus situ¬
inflation,
flexible
"This,"
Becker
and
stable
a
don't
ation.
"but
the
eliminate
Street, members of the
York
said.
vantageous" foreign trade.
Becker
Incorporated,
Salle
of
Congress failed
price support
plan go into effect after wartime
let
in
"We
expanding domestic consump¬
tion and increasing "mutually ad¬
(Special to The Financial Chronicle)
&
Mr. Shuman said.
years,
on
With A. G.
loans
out
on
entific fields.
the
are
The national farm leader pointed
that farmers have a vital in¬
large factor
a
a
machinery purchases, farm
out in time but not
by
24% decline in farm prices
production,
to
nuclear
activities and 31% in related sci¬
Straus
actions
productivity of labor. On
the other hand, farmers resent the
monopolistic pricing tactics used
by. certain labor groups and en¬
couraged by government."
Portfolio
on
Science
pricing"
creased
Science Funds
in¬
half to five years.
improvements,
Rigid price supports at 90%
in
H. Walker
and G.
Co.;
&
Co.
&
big
for
building practices which will
parity were established during the
war period to encourage increased
cents
Co.; Singer, Dean & Scribner; F.
S. Smithers & Co.; Tucker, An¬
"A
more
level.
Co.;
&
Shuman
last five
Mc¬
Schwabacher
fc$.
terest
&
&
Marks
M.
Chi¬
Congress have been
Co.;
Eastbrook
Inc.;
Laurence
increase
better chance of being
so
with
associated
&
likely to overdo this by adopt¬
ing legal limitation of dividends,
a
those
Among
The Government is
but
it stands
June
Dillon, Read & Co. Inc. and Riter
& Co. in the financing are: Blyth
for
checking and
dividend
ended
hospital
Government
realizes
that
six
first
1955, amounted to $38,084,000
and net income to $1,223,000.
not
bly of Parliament the utmost
sure
over-
nationalized
of
school
was
deferred, however, until the
reassembly of Parliament on Oct.
25.
This delay is open to some
the
now
Party conference
Mr.
the
and
building,
.
one
Webber, Jackson & Curtis; Rey¬
nolds & Co. Inc.; L. F. Rothschild
development
reconstruction
ways,
but
necessary result without which in¬
flation could not be halted.
In his
speech at the Mansion House on
of the important
producers of electric furnace steel.
Net sales of the company for
is
it
will
ing,
enough
deplorable
of
down
find
departments. Strong opposi¬
be encountered against
any attempt to reduce the amounts
already promised for road build¬
indications that the Government's
measures
will
capital
tion
no
copper-
wire and
steel
are
credit
said,
credit —loans
a
"These
nance
C.
Sept. 27.
the
and
year
which has taken place during the
furnace
its
ment
of their basic wage rates.
crease
scale
dustries
in¬
en¬
Co., Inc.; Eastman, Dillon &
Co.;
Hemphill,
Noyes
&
Co.;
Hornblower
&
Weeks;
Paine,
that
pronouncements.
Government
programs
overtime
of
corresponding
a
This in spite
contradict
ambitious
compensate
loss
any
earnings by
re¬
from
evidence
actions
difficult to
to force
power
to
growing
conciliatory
reduc¬
In
bargaining
their
the
Moscow's
cOuld
quality electric
and carbon steel,
company
the
of
practice, so
long as full employment contin¬
ues, the workers will have suf¬
ficient
ex¬
is
30,
the
theory, the
consumer
defense
laxation of the international polit¬
ical tension makes it difficult for
"utter
dose
the
Even that is, of course,
even
erate
of
effecting
in
cuts
strong
line
Co.
alloy and
carbon seamless steel tubing and
carbon welded steel tubing.
The
concerned.
capital ex¬
people dare to
Few
the
Steel
of
alloy
strongly opposed by the industries
of
output
the
penditure.
caus¬
in
or
be
cannot
There will be, of course,
temptation
least
check
the
Copperweld
covered
Many
to
for
down
checked.
from
quarter.
is
•
in
Shuman
termediate
The
"Political
in
industry
is unanswerable. Yet, unless their
any one
ciation in
we
farmers'
on
Mr.
problem is the need for
American
its melting
production;
new
of
consumers
needs,
of
ufacturing
mass
a
program
mean
of this country."
Touching
Conrad Hilton
pur¬
a
the
not
away
It
economy
Agricul tural
Breakfast
$12,000,000. This program is ex¬
pected to bring its steel rolling
contraction of their domes¬
a
tic market would deprive them
ized by every¬
Einzig
who
the
at
does
from the family
simply means that the
family farm is growing with the
farm.
Federation,
spoke
This
moving
Bureau
facilities into better balance with
or
savers;
cost
justify the capital investment
required by modern farming meth¬
ods.
American
Chicago,
require working capital.
to
B.
the
of
use
insecticides—all
"To be efficient today, a farmer
has to have a business large enough
Shuman. Pres¬
ident
mechanization, greater
fertilizers and
of which
farm
of
opinion
Charles
of
that
or
has been real¬
Paui
the
of
Farm
common
retained
and production
products. This
larger units, better technology,
of
the
in
interference
pricing
is
to
more
reduce,
the benefit of lower costs through
ex¬
power
body.
to
Bankers Asso¬
cessive
f
Co.
less government interference in the pricing
says
improve farm in¬
not increase,
to
way
is
come
about
chasing
o
are
against interference with
lar-earners
defla¬
tion of the
prevent
try is producing
case
market
Co.
benefits.
of the credit squeeze.
omelette with¬
}
sweeping nation-wide
against economies in
likely to mcbolize all their influ¬
Govern¬
&
Riter & Co. headed
a
Agricultural Policies
President of the American Farm Bureau
production of farm products would improve farm income.
Ascribes decline in farm prices to "political pricing."
government
Read
of the
to
Federation,
The
but favorable."
ence
Charles B. Shuman,
and
tunity for
campaign
social
Governmenl's
anti-inflationary drive.
Dillon,
Thursday, October 13, 1955
.
Farm Bureau Federation Head Scores
is
Common Stock Offered
Many" industrial 'interests
urging
Stock
banking group which released an
offering to the public at the close
en¬
gaged
task
in
Copperweld Steel Go,
there has been no indications that the
government's measures have gone far enough to produce a
result, without which inflation could not be halted. Holds
immediate prospects of the London Stock Exchange appear
Says,
decline
a
regarded - as an in¬
verted
barometer indicating
the
degree of success of the Govern¬
check inflation and protect the
to
bound to depress business
cause
Exchange
the policies of the British Government
exchange value of sterling.
Dr. Einzig comments on
to
Exchange prices. Indeed, in many
quarters the tendency of the Stock
By PAUL EINZIC
gr-
are
and
Will the British Government
.
.
.
SHREVEPORT,
Madie
Z.
staff of
Johnson
Sharp
Frank
La.
has
Keith
—
Mrs.
joined
&
the
Co., Inc.,
Building.
Joins
King Merritt
(Special to The Financial Chronicle)
PORTLAND,
Dengler is
now
Maine—Ralph
H.
with King Merritt
& Co., Inc., of Casco Bank Build¬
ing.
Volume 182
Number 5472
Continued
from
then
ant
9
page
(1535)
The Commercial and Financial Chronicle
.
..
has
feels
been
that
his
explained
problem
and
away
leaves the office satisfied.
On
York, Connecticut and almost
all of New Jersey.
These committees
as-
Many of those complaints have
The
sisfed by a professional staff.
professional
very little merit.
Perhaps a securities
dealer
didn't deliver
a
in those districts
man
is called
a Secretary.
If it is neche in turn has a staff in
essary,
x
mittee, which is purely executive
and is designed to enforce in its
area the policies which were laid
by the Board of Governors,
Rules
Fair
of
have
which
we
in
when
date
created.
were
the
Jay
it
was
pur„
of
member
the
public, and this person feels that
he is being robbed because the
evidence of ownership of the certifieate which he bought is not
properly
are
ness
plaint
which
we
if
must accept
Any person against whom a
complaint has been leveled may
defend himself and have counsel with him in order to assist
him in his defense.
There are four kinds of penal-
the District Committee can initiate
complaints against any of our
members
its
on
These
complaints
according to
essed
of
which
rules
initiative.
own
all procregular set
are
a
have
sonably light, we may impose
a
Also penalty of censure, arid the com-
he chooses to go that far.
say.
pension must be stated.
I have known of cases where
suspensions
have
been
leveled
set
been
mittee under those circumstances
might feel that they have dis^
ciplined the
his errors.
if
member
offense
the
is
a
enough for
little
more
serious,
we
can
impose fines,
which sometimes hurt him more
Finally,
if the offense has beserious enough, we can expel a member from the Association.
Although it doesn't necessarily put that member out of
business merely because such an
expulsion has taken place, it is
very difficult for any securities
dealer to operate a business profcome
sociation and the District Committees
all
where
know
they
Further,
pensions
we
for
may
limited
impose
sus-
periods
of
itably outside of the Association;
providing, of course that they do
Continued
on page
The first
Rules of Fair
as our
It contains some 28 rules
which
have laid
we
principles
down
the
which transac¬
tions shall take place with other
upon
securities dealers and members of
the public.
We like
to think of these rules
being
as
there
only
are
when
sure
inclusive,
you
28 of them, and
those rules, I am
see
will
you
though
even
with
agree
me.
There is also another document
called
"The
National
Uniform
Practice Code," which contains 60
provisions,
is
and
attempt
an
on
the part of the Association to pro¬
vide uniformity of practice among
securities
dealers in
the Street.
That
uniformity of practice is
very essential. Before such a code
came
into
existence, securities
dealers
generally
determine
the
unable to
were
condition
of
the
certificates which they had bought
and paid for. In many cases they
receiving evidences of
ership of securities which
were
ownr
Private
existed
in
them.
The
Code
attempted to outline what
Microwave
of
System microwave equipment
helps a midwest power company
has
smoothly, act quickly.
operate
secu¬
a
power moves around interconnected system under guidance
dispatchers. Bell System telemetering supervisory control and voice channels permit the
operators in this load dispatcher's office to supervise and control the inter-exchange of kilo¬
watts at remote locations 24 hours a day.
Telemetering Channels—Electric
System-Bell
were
useless, because of the defects that
rity should look like, how it should
be delivered, how it should be
paid
for
what
and
about it if any of
are breached.
So
under
which
operate.
we
WE
These
rulings
by
is¬
system
by which
discipline upon
a
impose
can
members
if
rules.
our
Just
The first
Trade
Rule,
that all of
known
honor
our
as
ples of trade.
;
.
nation's
power
of
a
An
increasing part of the
Bell
System's business is
pro¬
commer¬
equitable
It is
princi¬
very
broad
tries to be fair
in
its interpretation of what is
is
not
ciples
just
equitable
and
trade.
of
that, to date
have
had
And
that
rules
are
need
„
.
,
'
*
"
'
'
lines, pipe lines and railroads.
The Bell
System
can
their communications
meet all
require¬
viding communications for the
ments.
Among the things
specialized needs of the nation's
provide
are:
not
for
dwell
made
available
will have
an
them
upon
of
lines, pipe lines and rail¬
we
Mobile Telephones for Pipe Liners—It is important
them
to
As these needs
expand,
Teletypewriter Service
does Bell System service.
in the pipeline industry be able to
immediately and on the spot. Bell
System provides mobile facilities for their trucks
and cars.
I
you,
The facilities of these indus¬
stretch
tries
Yet
tances.
contact
to
across
great
dis¬
they must be able
point immedi¬
any
ately and make information
available
Handling Trade Practice
quickly from
of the line
to
one
end
as
set¬
our
the
All
Code
Handling Trade
Practice
require
quick, reliable
communications.
Yet each has
Complaints. That code,
I believe, is worthy of a little ex¬
specialized problems. We tailor
planation.
our
Any member of the public who
feels that
he
has
been
by a member of
come
the
does
most
Supervisory Control
Industrial TV
Facsimile
And
we
We want
new.
that
individual needs.
and
exact
aggrieved
new
to
Up
come
with
to the
into
usually
an
his
com¬
time when
the
office,
oral
it
he
is
complaint,
serv¬
of businesses.
help them meet the
communications
accompany
growth.
Association
our
continually de¬
and better
ices for all types
communication services to
fit their
are
problems
their change
Teletypewriter Cuts
Bell
to the District Office of
Association
plaint.
supply the channels for:
Telemetering
veloping
code in
which is known
We also
the other.
Complaints
Procedure for
men
make reports
Mobile Radio Facilities
here
being
and you
are
opnortunity to study
a
Telephone Services
roads.
un¬
them at your leisure.
There is also
Private Line
so, too,
complaint
remaining 27
much more specific, we
copies
power
prin¬
The
since
can
-
of the members
none
cause
rule.
or
believe
I
about the treatment received
up
'
•<
*
that field
Our Association
of
r
_
System communications help draw together the far-flung
units of the
essentially
says
rule.
der
■
•
our
members shall ob¬
and
■
i
we
Principles
high standards of
serve
cial
and
our
DISTANCE
-
the Rules
in
Equitable
and
>
/
them violate
of
any
Fair Practice is
of
Bell
specific circumstances.
We have
'
-
'
'
•
sued in response to requests made
for them by members, and based
upon
SHRINK
'
supplemented
are
done
those principles
will see that, actually,
something like 88 rules
you
have
we
be
can
Bell
"limited'*
periods of time I don't mean that
they are limited to two or three
days. The word "limited" merely
means that the term of the sus-
Public> the members of our As- than anything else.
able to show
The complain-
delays occur.
time, and. when I
go
terested. In such cases a member ties which we can impose upon against a member of our Associaof the public can bring in a com- members. If the offense is rea- tion for two years,
down, so that the members of the
produced.
^
we
velop into situations in which
our Association becomes very in-
that in the regular course of busi-
two
is known
Practice.
the
chased
Sometimes
Practice
principal docu¬
ments, which have been adopted
by the Association in order to do
the things which we have been
required to do by the Act under
one
after
,
carrying
cut the work of the District Com-
We
security within three or four days
.
his office to assist him in
down
the type of which we know as an
informal one.
also
are
,
other
hand, sometimes
those complaints which start out
without any apparent merit de-
The NASD: What It Is and Dees
New
the
stand when the 'complaints
through our offices.
23
Telephone System
Rail
Schedules—An
extensive
System teletypewriter system is enabling
one eastern railroad to cut
Chicago to New York
freight schedules up to 24 hours. Advance in¬
formation speeds up train departures.
24
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26
The Commercial and Financial Chronicle
(1538)
a trouble spot aggravated by their ab¬
Yet the world is in ferment, and a continuance of
they often leave
Continued from first page
sence.
or
past practices seems out of the question.
We See It
| As
people,
one
The
be heavily dependent upon another,
been in the past, even though politically
it
and have often
each is
wholly independent of the other. The dependence
be essentially economic in nature. Lack of essential
capital in one and abundance of capital in another may
in
and
one
situation. Want of certain basic material
a
of it
abundance
neighboring land may
result. Various other com¬
of relative economic situations can bring about
result. Obviously, these basic facts are altered or
with great difficulty by any type of political
bring about much the
binations
the
same
modified
in
action.
■
a
same
from
Plainly,
political independence will not bring
to newly liberated countries. This
seems self-evident to
us, but a good deal of the propaganda
of the times might well
give contrary impressions to the
unthinking. The poverty of millions of Arabs, the squalor
to be found in much of India, the want in
large sections of
Africa, and similar states of affairs in many other under¬
developed areas are not the product of colonialism or of
any other type of political relationships now or previously
existing. They have their roots deep in other directions.
Ignorance, superstition, lack of energy and resourceful¬
ness, want of raw materials, contentment with their lot,
too,
economic millenniums
and a host of other similar causes are the real
culprits. If
political independence is more highly prized in many such
quarters, that is their affair and their right—and improve¬
Administration's
the
program
the
planning of
a
progressive money managers
pulling another, with Ike, the
great middle of the roader, com¬
promising between them.
What
It
own
do know is: It worked.
we
like
worked
ning
slowly
downward
then
and
plosive
rush
imperturbably
months,
six months,
Practical
of
the
is
matter
that
the
developed and made extensive use of
techniques which give peoples and nations which they
dominate the outward
appearance of independence. This
technique is not quite new, but it has never before been
so
fully developed and so systematically employed in the
international
scene.
For the
Astonishing
first time
done when
place to
compare
at length the posi¬
tions of the satellite nations about Russia with those of the
various elements of the British
Empire, pa^t and present,
informed person would for a moment doubt that
no
Poland
or
Czechoslovakia, for example,
of Britain
be said of East
The same,
ever were.
at
are
much under the dominance of the Kremlin
"colonies'"
least
as
fects of this
and
foreign dominance by Russia
Britain
the
on
would be naive
of the Poles
present. Information which might en¬
compare the economic and other ef¬
or
to
the
other
is, of
course,
on
the
one
hand
lacking, but he
feel any
confidence that the interest
Hungarians weighs more heavily upon
the minds and consciences of the Soviet
leaders than the
conditions among the
peoples of, say, India, troubled the
British authorities in the 19th or
early decades of the
20th centuries. Colonialism
may be on the way out, but
the essence of
imperialism is still present in many areas
and finds its most ardent
practitioners in the Kremlin.
are
well known and understood
by a
good many who cry for the end of colonialism.
They are
not
Communists, and they are as ready to condemn the
Kremlin's imperialism as
any one else. They, moreover,
are not
ready to settle for mere independence of those
peoples who do not at the present time rule themselves.
They, or many of them, are "do-gooders" or reformers at
wealth
of
can
Utopias, and
and should
use
our
suppose
that
we
with
millions, not to
say billions, of men and women
up out
poverty and squalor. Many seem not to bother
about the
whys and wherefores. They simply wgnt to be
great white fathers to suffering mankind in
many parts
of
their
of the world.
Others
are
overpopulated
excellent
For
somewhat
fishing
more
where
grounds
realistic.
resources
tunities to outside
They know that
peoples live in
for
the
Kremlin
troublemakers. If it happens that such
important natural
or
areas
want
make
of
people
demonstration
commit
this
that
At all events there
question
in
it
and
other
abound
present economic
in
oppor¬
was
be
can
any
must reckon at
we
be little
can
longer that we live
managed economy and that
a
all times with
the continuous intervention of the
fiscal
and
and
monetary
then,
the job, not now
on
but
authorities.
day. They
will
be
"leaning
against
the
wind,"
throwing
their
weight
against the trend of the moment
in
effort
an
business
wonder
—
every
smooth
to
cycle
and
the
promote
in¬
Loan
Association
their
Savings
and
members
As
far
back
Home
Loan
Bank
to
That
mortgages.
facility,
make
told, is supposed
were
to
be
re¬
served
for meeting withdrawals
strengthening the liquidity
and
of
System
shifted
members.
a
As
result of all
a
is
money
these
sive
or neutral position.
By January a policy of restraint
began to appear. Margin require¬
ments
raised.
were
In
February
the
Treasury resumed long-term
financing with an offer of 3%
bonds
in
exchange
for maturing
issues.
and
than
at
on
since
consumer
credit;
will
year
commercial banks.
The
screws
being tightened
are
By April the firm-money policy
under way, with rediscount
rates, rising
serve
the
at
banks
and
Federal
another
Re¬
hike
margins.
The
in
Administration
month
same
the
joined
in with a prohibition against in¬
cluding closing costs in guaran¬
teed or insured mortgage — in
short, the "no, no down payment
mortgage" was out. In July the
Treasury
again sold
long-term
3's.
Meanwhile
tion had
on
the
minimum
decisively
FHA
down
and
maturities
from
VA
payments
mortgages and shortened
imum
a
to reduce taxes.
move
August'
raised
Administra¬
beaten back
Democratic
In
the
max¬
30
to
25
years;
the Federal Reserve banks
began
a
round
increases
of rediscount rate
that
12 regional
has
since
Meantime, warnings
on
the
serve
by
liberal
credit;
the
issued
were
use
of
con¬
Federal
•
Re¬
wildfire
big New York
credit,
banks
called
on
the
carpet and said: "Cut it out." The
Director
of
Defense
Mobilization
supply and that means, in
turn, falling incomes and reduced
savings and less savings bank de¬
money
posits
which,
in
turn,
means
tighter mortgage credit and fewer
housing
the
the reserves available to the
banks, the whole
tends to be reversed.
to
be.
You
flation
com¬
process
I say tends
always force de¬
can
because
flation
Fed
easier by increasing
investments.
compensatory policy. It
When
starts.
makes money
you
always
can
liquidation of loans and
You
force
in¬
people to borrow unless they want
to, no matter how cheap you make
crack
money.
down
on
boom
a
is
some¬
thing else again.
because
can't
is easy to find the courage to com¬
bat a recession—easy
money and
tax reductions are popular.
To
We
can't
you
.
force
.•
.
deeply committed to
Yet this is, in fact, the crucial anti-cyclical policies. We have had
part of an anti-cyclical policy. one good experience; we are now
Once recession has got under
engaged in a second important
way,
testing
whether
a
easy money is a frail reed.
The experiment,
old familiar
metaphor is that try¬
ing
a
halt
to
recession
by mak¬
ing credit easy is like pushing on
a
string. You can't always count
the spectacular results
on
won
in
1953-54.
The best possible way to
prevent a recession is to sit on the
preceding boom. Here monetary
policy can be very effective.
restraint
effective, it is
so
be
can
dangerous and
a
The Federal Reserve must
cautiously,
results.
it
yet
Next
taxes will be
election
must
move
also
get
willy-nilly,
year,
cut.
It is
national
a
virtually in balance, thanks to in¬
creased
revenues,
it
and
will
be
politically impossible to deny
lief
to
the
rent
tax
in
relief
'53 and
helped
'54.
Tax
superimposed upon the cur¬
boom might blow the lid off.
the Federal Reserve is sweat¬
So
ing blood, trying to damp down
the
boom
cuts
and
figuring on tax
to pick it up
again next year
hoping thus to stretch out
now,
good times
long
as
as
possible.
It's
a ^dramatic
struggle, this
fight to keep the boom from run¬
ning away and ending in a crash
and, at the same time, to avoid
putting on so much pressure as
to
bring
on a
gle in which
slump.
It's
a
strug¬
the
monetary auth¬
orities need all the help and en¬
couragement business leaders
can
give.
of
course,
find them¬
selves right in the middle of the
anti-cyclical
operation.
Com¬
mercial
closely
banks
have
affected
operations
but
by
now
always been
central bank
the savings
of
involved
1953
money
on
you
in
be
it
stretched
it
as
response
policy,
out
by
its peak.
nears
far, however, we have had
really critical test of our capac¬
ity to stabilize the business cycle.
no
What do the
Can
chances look like?
really
we
hope to level out
the business cycle? Can we achieve
the ideal goal of a slowly expand¬
ing
without either infla¬
economy
tion
the
on
one
depressions
there's
on
real
a
hand or recurring
the other? I think
it
chance
be
can
done.
before
Now
idea, let
wrong
anybody gets the
me define what I
mean—and what I don't
First,
I
abolish the
business
Second,
do not
have
up
an
and
I
in
un
we
can
cycle.
think
we
can
that simply goes
economy
out any
mean.
think
not
do
straight line with¬
a
dips.
ment
less
you
to
by itself
the tight-
found
your¬
guarantee end¬
can
prosperity for
everyone.
.
"We Can Moderate Swings of
The
believe
Cycle"
;
can
moderate
the swings of the cycle.
I do be¬
another
I
do
lieve
we
Great
we
prevent
can
Depression. It is sometimes
that the Great Depres¬
forgotten
sion of the 1930's is unique. Never
before
there
was
a
worldwide col¬
lapse of this magnitude.
There
we
need
is
no
reason
of
concentration
cise
which
disasters
to
believe
again face the
ever
pre¬
errors
and
that
produced
worldwide
blight. As it was, the
Depression, in my judg¬
Great
need never have attained
severity it did reach.. The
ment,
is
truth
did
we
all
the
We were like
surgeons, trying to cure
things.
wrong
old-time
a wound
by bleeding the patient.
We
We
maybe
made
we'll
with
Vior^ric
learned
have
may
make
pretty
can't make
recollect what has
happened the last few years. Early
in
can
the
Banks,
All
boom
sitting
Thus
Third, I don't think the govern¬
how
saw
turn the tide
cuts
re¬
long-suffering Amer¬
taxpayer.
We
are
the budget will be
year;
York, alarmed banks are more deeply
spread of mort¬ ,than ever before.
warehousing
the
Fed
starts
making
really tight, it will mean,
ultimately, a contraction in the
money
force the
Bank of New
the
gage
the
too
carried
banks to Vh%.
Re¬
policy may not be
to !see at once, but it's there.
a
half of
in¬
Federal
operations and Fed¬
seeing the other essential
are
to
The direct connection be¬
your
mercial
slowly and delicately, but
are
being tightened. Thus
they
we
attention
Reserve
tight—
certainly be down. Similarly, some
will certainly be put upon
inventory accumulation by rea¬
son of
higher interest costs and a
more choosey attitude on the
part
the
execu¬
pay
When
brake
of
bank
alert to signs of a change in that
easy
We have not yet seen
effect
savings
policy and will be especially
serve
eral
anytime
housing starts next
ican
was
wise
creased
moves,
tight—damned
so
much
a,
pas¬
The
tive, I think, will start to
tween
the Boom
on
Attention to Federal
Reserve Policy
,
policy.
Brakes
as
from
policy of "active case" to
swing with them.
Increased
new
they
tricky instrument to use. That is
last
September, when recovery why the Federal Reserve is mohad only just begun, the Federal- ing so slowly and
carefully.
Reserve
expect these recurring
shifts in credit and learn
that
they would not be allowed hence¬
forth to borrow money from the
Because credit
this illustrated in
seen
months.
recent
out
We must
rapid
stability.
We have
sumer
interests, there is apparently no way to
keep foreigners out. If Western powers
simply evacuate,
to
If
done.
all
areas
finally
of
and
down,
getting
scarcer,
and
mortgage terms are being tight¬
ened up on all sides.
to
very
coordinated
needed
was
millions
the
our
substance to lift hundreds
ago
Now once
are
is
money
warned
can
recession.
a
Veterans'
But these facts
heart who dream of
with
whole pic¬
"governments"
banks
suc¬
government moves
completely to a continuous
anti-cyclical policy, this was it.
any
Germany. It therefore obviously does not
observer to
an
have had
we
us
creased
of the
of course, is to
as
lie in the mouths of the Kremlin masters to criticize colo¬
nial powers, past or
able
to
They will be
This is not the
every¬
practical and astonishingly
anything
fact
amortization;
weeks
few
ex¬
Demonstration
take many forms and
may continue after the historical
form has long ceased to exist. The Kremlin is fond of in¬
The
blew
and
Successful
the
suddenly
building soared.
wonders!—the Federal Home Loan
but,mortgage credit is tightening
and
nation.
an
episode; but I have a rather
strong opinion that the recession
of 1953-54 will prove of historic
importance.
combat
Soviet leaders have
erated
a
whole
efforts
an
the issuance of
on
early 1953.
be
colonies, and is in point of fact
clamped down
It is, perhaps, a little early to
appraise the significance of this
A
your
again
more
promptly
anticolonial
with
that
importance is the circumstance
complained of as "colonialism" may
no
mortgage lending
because you could no longer sell
governments to raise funds for
cramped
home
certificates of necessity for accel¬
for
cessful demonstration of what
Another fact of great
sisting that it has
Begin¬
economy
Prospeiily
nine
recovered
That
bond portfolio.
governments rose; there was am¬
ple
money
for\ mortgages and'
body's hat off.
fundamentally and in the
responsibility.
May Take Several Forms
that the conditions
the
and
for
sidewise
moved
charm.
a
mid-1953
in
sank
a
but
re¬
of 1953 and 1954
clear,
precise
central intelligence
and to what extent it represented
the end product of conservative
budget balancers pulling one way
covery
represented
depreciation in your
a
government
ture changed: money became easy;
The Defense of
extent
ment in their economic status is
first instance their
selves with
mortgage loans.
7
page
and
■■
that
suppose
Thursday, October 13, 1955
.
Then
Continued
may
result in such
problem is a real one, but let us not
by pouring in our dollars.
be solved
can
may
.
.
in
the
never
our
all
bad
the
early
again
mouths
honcfint*
things.
mistakes—
ones—but we
some
other
same
ones
we
Certainly
stand around
30s.
open
and our
like
creat
rinwn
Volume
Number 5472
182
.
.
>
The Commercial and Financial Chronicle
(1539)
boobies and watch perfectly good
banks tail—on a technicality.
Neither
lions
ed
of
will
we
unemployed
finance
we
b-ey
will
to
Throwing
will
homes
product found its
Should the Commission's
to
be
upon
when
us
we
making credit easy.
these things seemed
.right and. moral and inescapable—
by telephone to get
like the boils Jehovah sent to pain
poor Job.
In the light of hind¬
sight, they
make
were madness.
off
start
can
by saying
quite
the
I
won't
mistakes
so-called
we
there
are
much about.
so
insurance, old age
insurance, bank de¬
posit insurance, farm crop insur¬
ance and price
supports, mortgage
insurance
and,
of
course,
the
widespread
private
retirement
systems that have grown so much
in the past 25 years.
We have the influence of
com¬
pensatory
fiscal
and
monetary
policies about which I have al¬
much.
We have, as we are currently
seeing, the po\yer of government
to affect directly mortgage lend¬
ing, making terms easier or more
stringent
as
circumstances
re¬
quire.
Beyond these influences which
be
can
rapidly
there is the
works
as
brought
to
bear,
availability of public
stabilizing
a
force
in
threatened hard times. The Eisen¬
hower
Administration
pared
desirable
and
sary
has
extensive shelf of
an
but
ed
be
can
pre¬
public
which could be launched
held
if need¬
back
at
for
Finally, we have on the part
of our people a monolithic de¬
that
an
T observe, an
widespread
and
intelligent interest in economic
events and policies.
spite of world
depres¬
sion,
Communists,
and
atom
bombs, our generation has been
fortunate.
is
for
ro excuse
Now
,
At least
the
of
in
have lived
we
control
regulate
indeed
can
shall
we
fail.
In
that
event, the price of failure will be
Perhaos
severe.
very
have
learned
may
we
shall
what
of
more
know and
to
shall
we
only partly succeed. Then
we
do| better
next time.
Perhaps
boom
as
have
recession.
to
we
shall succeed.
shall
we
learn
the
curb
gently and smoothly as
just curbed the recent
Perhaos we shall really
flatten
the
cvcle
into
business
Per¬
current
hurricanes
of
all
be
long
economic
de¬
be
with
achieved, it will
the
wholehearted
people and especially
our
The
savings
bank
and
FHA
and
business
is
peo¬
ple, especially
pro¬
for
maturity
Loan
little people,
the economic hazards
a
encouragement
vital part of
any
tional effort to stabilize the
are
na¬
Savings bankers have much
the
success
effort to tame
In
of
econ¬
to contribute to and much to
from
commit
do
so
the
defense
all in
of
the
of
cycle.
prosperity
the front linej
gain
current
the business
we
or
eral
Reserve
an
And
restrain
Bank
to curtail the
York
New
of
mortgage warehous¬
operations
actions
These
commercial
of
designed
are
effective
the
reduce
demand
to
for
to restrict the flow
capital into home
housing and
investment
again to speak in human
terms, the dreams of thousands of
families, their plans for home own¬
While
actions
not
body
a
blow,
certainly
were
a
home-building industry.
these
jab at the
In
some
the
of
country they could
hurt the industry seriously.
In
view
has
of
on
to
home credit
slump
and
the
chain
arr£
of
might set off.
able
to
buy
Consequently
in
there
is
a
the
purchase of home
When home building
is curtailed, it
the
ef¬
this tightening
can
people
appliances.
that
consider
which
homes.
incalculable
building and home
the nation's economy,
that the Administration
failed
reaction
Fewer
the
home
of
necessarily follows
furniture
industry,
this
are
far
in
prices.
be
improved
for
order
to
a
Warehousing
To aid
at
the
institution
its
type
time
tries
it
is^
set
to
delivery date for the mortgages
a time in which
they will need
type of investment to {ake
this
care
of
there
are
arrangement
expected
bank
the
at
commitment
industry, the banks,
therefore, developed uncommitted
mortgage warehousing. Under this
commercial
This
warehousing is generally a pro¬
tective device by investment in¬
stitutions, particularly necessary
in the present
monetary situation.
sues
Mortgage
cash.
secure
of
The
Uncommitted
their
funds.
However,
times when
sudden
withdrawals
un¬
buy these loans at a margin
price that is generally well below
sched¬
uled payoffs of loans do not occur.
Institutions have the obligation tp
accept loans and, therefore, ware¬
the
house them in
a
to issue
agrees
firm commitment
a
to
prevailing
to
agrees
price.
take
It
these
further
mortgages
them for varying pe¬
and to hold
riods of months—that
is, the mort¬
remains the prop¬
actually
gage
erty
the
of
end
of
mortgagee
the
agreed
up as
serves
tions
their
mortgagee have time
to
sell
their mortgages to
best
advantage and in addition to have
a
commitments.
As
a
result, this
type of warehousing makes it pos¬
builder
and
It is not necessary to delay
construction
for
a
satisfactory
mortgage market. It makes it pos¬
crops;
seek
wider
a
mortgages
and
of
are
commercial
mortgagee
available
to
the mortgage
banking and vitally important to
the housing industry.
Warehous¬
ing makes it possible for the
his
their
on
function
are
them
se¬
the
warehousing properly used
normal
same
for
a
on
;
the
for
at
of
and
and' corresponding
sible for builders and mortgagees
to smooth out their construction
year.
usually
bad effect
a
market
sale
believe that these three types
I
of
higher price for immediate
delivery loans as against forward
bonds,
loss with
the
securities
market.
investors
pay a
into
depressing effect
for immediate
delivery. Mortgage
normally are willing to
forced
long-term
bond
because
the institu¬
purpose
warehousing
treasury
package of mortgages available
a
commercial bank
a
double
a
are
vere
or
they will then pick them
the funds are available. This
without
the
during which time the houses can
be completed and sold
and the
builder and
where
period,
until
upon
his
financing
the
to
have
to
devices
that
for
manufacturers
to
farmer
for
inventory and to distributors
their
for
The
products.
restrictive
actions by
Reserve
Board
ginning
to
be
be¬
now
Before
felt.
situation becomes
present
the Federal
just
are
this
drastic, the Fed¬
eral Reserve Board should
diately and publicly recognize col¬
lateral loans on mortgages here¬
savings
saving in construc¬
The end result of these
more
was
houses for the
for the home-buying pub¬
Without
the
who
uncommitted
builder
has
the
is known
warehousing
mortgagee
a
commitment from
a
institution
investment
an
with
specific delivery date at
the
the
crop
grain.
ing and arises when
in
like
his
committed warehous¬
as
does have
is
sell
to
ware¬
the
some
time
future.
Questions Restrictive Program
Frankly, I question, the wisdom
of
that
the recent
has
ures
has
that
not
of home
un¬
Recent
fig¬
household
for¬
proportions.
indicate
mation
rate
reached
been
lagging
loans
fulfill
until
this
banks of the
the
delivery date. To
need
the
commercial
country have accepted
accumulation of the mortgages so
that they may be delivered in one
the
package on
commitment.
due date of the
Surely this is a nor¬
as
A
Third Type
of Warehousing
believe, and also that the number
There is a third type of ware¬
of housing units demolished each
housing which we call the institu¬
year
is quite a bit higher than
tional type and usually involves
previously supposed.
Also
the an investment institution ware¬
latest data on vacancies certainly
housing loans that are received
do not give any cause for alarm.
from the mortgage companies on
I can assure you that these ac¬
their due date and for which funds
tions taken by the present Ad¬
are not available,
or even taking
ministration
primary
will
areas
sub-committee
undertake
be
one
of
during
the
remainder
of the 84th Congress.
Our
study
subjects
such
will
as
mortgages out of their own port¬
folio and using them as collateral
for
a
commercial bank
traditional
that
borrow from
embrace
slum
other
clearance
as
commercial
banking and if in their wisdom
they wish to exercise some con¬
trol, we in the industry have
objection — but to precipitate
no
a
crisis—a complete cutoff is some¬
thing neither this industry nor any
industry can stand.
The large
banks
gage
tion
actively
engaged
in mort¬
warehousing met the situa¬
during the two previous un¬
one
banks
loan.
\yill
another.
It is
periods
of
1951
and
1953
by increasing their fees and mar¬
now
in
engaged
have
adequate
knowledge
so
as
policy to meet
this operation
experience
and.
to adjust their
new
situations.
Lastly, it is impossible to main¬
tain and secure the proper level
of housing of all types unless a
strong housing agency adequately
staffed
with
maintained
an
to
career
in
the
personnel
is
government—
at a biph enough level
agency
wa^d off unjustified attacks and
political
I
feel
pressure.
strongly and very
all these matters
and
hope
that
your
inquiries
into our problems will lead to a
very
seriously
about
correction.
With A. C. Allyn Co.
(Special to The Financial Chronicle)
the
of study which my
on
housing
will
of
gin requirements, effectively cur¬
tailing an over-use of the ware¬
housing. We believe that the banks
mal function of commercial banks.
far behind housing starts as many
warehousing,
as
function
builder
during construction,
off the mortgages on comple¬
tion of the house, and carry the
the
taking these steps which may
these firm commitments for mort¬
well have a seriously disrup¬
tive effect on an industry which gages as collateral and advanced
the money during construction and
is now proceeding at a near rec¬
to also pay the builders on com¬
ord
rate.
Moreover, no one has
pletion of the house, and permit
made a convincing argument to
construction
known
normal
settled
very
me
tofore
a
imme¬
Many
mortgage
companies do not have the capital
necessary to advance the money to
pay
ership, are punctured.
healthy
mortgage loans.
fect
innumerable
industry, the
And
have
we
result,
a
only at extremely
before he plants the
curtailed.
also
attempt by the Fed¬
seen
it appears
savings is
to
act
associations.
loan
sight from
omy.
to
advance
farmer
Unwarranted
textile
borrowing by member savings and
also
buying
The
seen
Board
Bank
loans to 25
the Home
such
We' have
years.
tect themselves by thrift and fore¬
life.
increased,
loans
GI
reduction in the permissive
a
areas
devoted to the effort to hnlp
of
unwilling
low
lic.
banks.
business and financial leaders.
.
10
dustry of electrical appliances are
ing
understanding cooperation of
our
for
of
If this is to
and
.
gadget industries and the vast in¬
of the
pression.
only
r.;.
We have
to retard credit.
what respects Federal
may
considerable
the minimum down payments
program
gentle
waves
rollers that the Ship of State can
ride smoothly over, untroubled by
the
,
.
target in the general
prime
seen
we
do.
Restriction Program
a
As
uncertainty,
money
The second type of
as
in
tion cost.
Administration's Home Credit
economic weather.
our
Perhaps
we
economic destiny, can
our
of
housing
one
and
programs
11
page
avoid delays and stoppages during
the year.
All of this resulted in
There
exciting experiments
history — the effort to
determine whether
haps
page
from
institutions, particularly in
many
times
money
from
We
problems are, what the pro¬
spective home owner's problems
your
Housing Indnsliy Stands
field
the rights to freedom of speech and of the press.
Continued
shall be
we
pull
the benefit of all.
sible
envisage that the Commission was empowered to
Constitution by abolishing, even in any limited
This the SEC may not
that
IU
stuciy will be
constructive ap¬
want to know what
are
most
human
need
contemplated that
never
libel and slander laws, nor
our
being bored.
in the midst of
are
we
What would be his
amend
wars,
liv^s in exciting times.
our
Our Federal Securities Acts
did they
now
proach.
guilig
our
a
looking only for the facts. We are
not going to brow-beat the home
date of commitment.
-
our
you
uui
conducted with
Mort¬
I would like to
axe
At the Ciossroads
say
the SEC would administer
National
serve no purpose
sense,
These Are Exciting Times
In
it make?
have.
We
extraordinarily
assure
Continued
approval before he could mail this very article
had already been seen by millions. What sense does
which
expanding
hiVh-levJ economy must be main¬
tained.
its
Federal
Program
proposal become effective,
position under the SEC proposal?
;
He would have to go hat in hand to the Commission
the
height of the boom.
termination
and
this article to all his co-stockholders.
un¬
and survivors
so
the
over
news
works
These include
employment
ready talked
was
neces¬
built-in stabilizers we've all heard
may
the
Credit
"
punches but
any
building and home finance indus-
It
what I wish about the President of the
United States subject only to the laws of libel and slander,
but this I may not do concerning the president of a cor¬
poration in which I am stockholder.
This applies to what a participant or a participating
group may want to say to its co-owners of a corporation
through the medium of advertising. Management is safe¬
guarded by the fact that newspapers examine such adver¬
tising and will not publish it if there is libelous content,
since on publication the newspaper would be just as re¬
sponsible for damages as the author.
However, despite all safeguards the SEC would now
make it mandatory that such proposed advertising be
subject to its censorship.
Of course newspapers are not under SEC jurisdiction,
but the Commission would do irreparable damage to the
public interest by interfering with free speech and the
communication thereof through the media of interviews,
publication of news and advertising.
Let us suppose that an article did appear in the press
which had a direct bearing upon the affairs of a corpora¬
tion in which a proxy contest was progressing. This may
have been read by millions. Let us further suppose that
a
participant in this contest wishes to send a reprint of
again.
Then
all
press
interview would
an
multi-family
the Voluntary
Mortgage
and
for it would be met with the observation "I must first
get
SEC approval." Sounds ridiculous, doesn't it? It is.
So you
same
the
renewal,
housing,
Participants then would have to obtain approval of
their every utterance. There would be no
spontaneity.- As
to them, on the spot interviews would be useless.
Stop¬
ping a participant as he got off a plane, or reaching him
and let foreigners pull
gold out of our country, forcing a
the time,
urban
gage Association.
what would the condition be?
quietly
At
into the public-
way
country without cost to the company.
read by millions.
the mortgage. Nor
let foolish men ana women
credit squeeze
Curve
a
on
re¬
gamble in the stock market on a
10-point margin.
We won't sit
.ought
and
Home
renew
we
3
rental
get
can
three-year mortgages and then
fuse
page
mil¬
Neither
people's
from
unassist¬
go
except for what
the bread lines'.
on
let
ever
Continued
27"
PORTLAND, Maine
H.
Carr
with
A.
has
C.
become
Allyn and
—
Charles
associated
Company,
not Incorporated, 415 Congress Street.
There¬
fore, they enter generally into re¬
purchase and sale agreements in
Mr.
Carr
Walter J.
was
Hood
previously
with.
Company.
/
ritwmprtmrt; rvr-h
The Commercial and Financial Chronicle
Thursday, October 13, 1955
...
(1540)
28
mines
the
As
this
late
next 50
the
for
curve
the average of 12% rise per
vear as seen
for the past decade
or more.
The figure so obtained
is so astronomical that one doubts
years
will
experts
Few
validity.
its
prediction beyond the
next five years.
Arthur Burns,
the economic advisor for the Ad¬
ministration, predicts a Gross Na¬
tional Product of $440 billion per
year in 1960. But Keyserling, who
at times has advised the CIO on
economic matters, feels that we
can
without doubt reach a level
of $500 billion by that time.
make
any
coat
tin
is
can
the city dump. Thus,
well as the steel is
unavailable
for further use.
It
ends up on
the
tin
has
been
and
find future gen¬
mining our city dumps.
materials
get
erations
more
may
we
scarce,
raw
more
as
Only raw piaterials from grow¬
1935.
grow
to
re¬
a
Our
expect to have as
can
we
to
In 1946 the
capacity was about
produce this metal.
losing game
Use
of
look
us
more
of energy.
closely at our
This is
spectacular evidences of the
development
of
our
industrial
civilization, for by the simple
sixth
one
of
might grow cold.
back
thrown
to
be
the
Most of this energy
which
and utilized through
the medium of electricity and this
transported
has led to
startling expansion of
a
electric
productive capacity.
Many figures are quoted on this
phenomenon.
One expert says
that our capacity increases at the
rate of 6% per year; another that
our
capacity
doubles every
10
years.
If properly plotted it is
apparent that
our
capacity has
been
increasing
logarithmically
our
from
to some 300
hours in
1916
kilowatt
hours
fold
in
in
increase
1948,
about
32
10
a
years.
The
that
know
us that
radiates on
sun
the
tleneck
for
will move
sun
machines and
The
the problem
iron
so
simple
could
do
it.
have
that
our
material shortages will be aggra-
era
seen
should
that a
the
of
be
meron
Taylor
era
intelligent man-
by morons, then the pres-
decision-making
ent
we
If
tended to replace
Question of Manpower
far
that
pig
J;he foreseeable time made
power
So
said
unloading
been conquered.
has
of increasing pro-
ductivity was a system of work
simplification introduced by Tayjor ancj others about 1900. Taylor
himself
bot-
our energy
method
Qne
past.' Thus we have only
to advance our technology to the
where
from
at least to make him more
productive.
turies
our
In part, this was
immigration
by
man, or
we
place all of that stored in usable
fossil fuels throughout the cen-
point
and
century
the
stored in
uranium,
energy
to be available to
Second,
sun.
This
work.
Europe, but as
this earth sufficient energy to re-
billion
or
satisfied
collect usable energy from
in three days
his
19th
experts tell
of
seems
can
the
kilowatt
billion
30
some
we
Thus started
the demand continued to exceed the supply, it
was inevitable that engineers and
other ingenious men would begin
to devise machines by which energy could be applied to the manufacturing
process,
to
replace
100 Q of energy
use.
our
is produced,
of
in the
low level labor.
of energy,
we
form
the
factory
his bidding.
workers to do
First,
at least
six
about
other
growth
in the
the early part of the 20th century
saw a vast commercial expansion
which created a heavy demand for
Fortunately, we
its simpler form.
benefits
country
know that by present
standards of technology we have
36
f
childpower to make the goods for
system of life and automation would not be possible in even
him get out the prod¬
Today, the average factory
available
WQrld
trade became acute.
ferent
help
or
the
Looking
tunes and the subsequent
o£
automatic machinery
dif-
entirely
an
and
has
,
back we
now see that the growth of trade
in the i6th and early 17th cen-
Un-
conditions we would
der such
have two other sources
worker
business.
the struggle, by the laborer and
artisan, to get a proper share of
homes
our
worker
horsepower
leaderg
and
textile industries, the demand for
if
worker who would do his
uct.
farmers and laborers-could
out, our generators might stop and
Thus, in 1900 each
had
another
bidding
manpower.
factory
ofearti_
that the
era
b
land_grant
manpower, womanpower and even
our
horsepower is roughly
a
th
tn
own
fossil fuels were
we
One-
horsepower.
a
reall
our
only source of energy supply
could expect that even within
lifetimes our fires might burn
Therefore,
our
States had at his command about
of
ot
and
mining
this will not last very
kind of automation, we have gone
one-sixth
social
and
remained
aspire to become professional men
2000 rate of one Q per year
long.
year
most
Things
not
was
sanSj
do is to obtain even-
can
we
It
ginning
college
tually some six Q s of coal. At the
of the
one
of
business
in
this pattern until the blossoming
of the industrial revolution,
that by
the
is
opinion
for
as
leadership.
This situation alfor some veins of
methods
present
Energy
best
Let
use
exists
coal. .Expert
'
ture.
use.
our
ready
considered as far in applying energy to our
inexhaustible productive processes. Around the
supply.
Things we make from turn of the century the average
corn, cotton, palm oil, and latex,
factory
worker
in
the
United
,
of
out
ing things can be
coming
from
an
long as
we
grow
the plants and trees
Measuring Productivity
whence they originate. Such sup¬
Is it useful to interpret this in
plies are almost literally inex¬
terms of the "average" man?
If haustible.
it is, the analysis is just simple
Rarely does our rate of use of
arithmetic. If one takes the Gross raw materials decrease, and dur¬
National Product for any year ing the time of war the increase
and subtracts from it the amount
in
use
is precipitous.
For in¬
which is diverted into
military stance, under the spur of the Ko¬
expenditures and divides the re¬ rean War, our share of the con¬
mainder by the total population, sumption of the world supply of
one
has the amount available to aluminum ore jumped from 37%
the average man in civilian goods
in
1949
to
52% in 1951.
Our
and services.
Such a calculation, consumption of tin for the same
of
course,
takes
into
account period jumped from 29% to 37%
The
changes in population which are and of zinc 39% to 44%.
also important.
A curve of the mines of none of these metals are
Already we are
per
capita
disposable * income inexhaustible.
shows an increase from a low of
beginning to have difficulty in
about $400 per year in
1932 to finding adequate supplies.
something over $700 per year in
There are other metals which
1954.
These figures have been are in more
plentiful supply but
made more realistic by discount¬
which are expensive to our econ¬
ing the dollar inflation and using omy for other reasons. Take, for
as a measure the somewhat firmer,
instance, aluminum.
There has
though perhaps mythical, "dol¬ been a steady rise in the capacity
lars"
is
iron
our
way
only
our
placeable raw materials to make
the synthetic materials of the fu¬
as
suggested that,
of
42%
even
dilemma
this
of
of our
aluminum, 95%
and
Perhaps
ore.
"tin" cans. Usually, a
used but once and it
into
ioned
make
nickel
steel to be fash¬
on
deeper, and the seams get thinner,
more energy must be used to win
a ton of coal.
Obviously, when we
reach the point where we must
use the energy in a ton of coal to
mine a ton of coal
we are playing
we
Really Means
tective
for
cobalt,
35%
of
our
petroleum,
60% of the bauxite from which
What Automation
well
get
99% of our chromite, 92% of our
13
Continued from page
intends to
automation
replace those mo-
In all
the pat1956 it
lion kilowatt hours in 1962 and be expected to become more acute tern has been the same. The Jacloom
substituted horseprevious curves are caused mostly one and
certainly long before the year 2000 with accelerated automation. The quard
neighbor,
Canada,
is we will need a capacity in excess energy situation will be a diffi- power for manpower. Our wonby end effects of the depression northern
and of the last few years, which
making
even
more
spectacu¬ of 10 trillion kilowatt hours. Un¬ cult one, but it is not unsolvable. derful earth-moving machinery
lead to abnormal changes in pop¬
lar advances. Increasing hfcr,'.pro- fortunately,
an
increasing
per¬ Now, what about manpower and, makes it possible today to move
ulation and in the value of the duction capacity from about' 230,- centage of this energy has to come in particular, the kind of man- earth fill for 40c a yard, much
dollar.
But whether the rate be 000 tons in
power of interest to engineers, decheaper than it was ever done by
194^ to well over one from fossil fuels.
16% or 6% this is a commendable million tons in 1956. Since baux¬
signers, managers and scientists? manpower
and
horse-drawn
Electricity, hov/ever, is only a
The manpower situation is one on scrapers. Our mass production inshowing for our economic system ite, the raw material for alu¬
part of our fuel requirements.
which it is difficult to generalize,
and our productivity under the
dustries
simplify processes and
minum, is quite plentiful, alu¬ Even in 1950
only 10% of our
first because one must discuss not simplify
former era of non-intelligent au¬
minum supplies will be adequate
jobs until automatons
total fuel expenditures went into
tomatic machines.
If the simple for many years to come if we can
electricity. This is not surpris¬ only the quantity of manpower, can do it. All of these merely subfind the energy to make it.
but the quality, and the measure stitute horsepower and predeterThe
application of energy and auto¬
ing when one thinks of automo¬
of quality has not yet been found,
matic controls brought this sort of reduction of one pound of alu¬
mined operations for intelligent,
biles, of space heating, of chem¬
On quantity consideration alone hard-working manpower.
increase, < should we
not expect minum takes about twelve kilo¬ ical
processes
and all the other
watt hours of electrical energy.
the application of decision mak¬
we
can
foresee a shortage.
We
systems which consume energy
"Machines Simplified the Job'
ing machines to accelerate even This energy, like all others, if it without the intervention, of elec¬ know it will be necessary to press
In retrosoect it now seems inthis increase?
comes from coal, oil, or gas, the
into
service
non-employed
productiv¬
This measure of our
ity increases about 16% per year.
Discrepancies between this and
States
United
by
will have reached about
a half million tons.
Our
thousand
425
tons
year;
per
It
is
predicted that
now
we
reach the magic figure of one
will
tril¬
by the demands of indusexpansion and that effect can
by electronic devices.
vated
rons
trial
of these early industries
t
.
If
used
it
single word must be
a
characterize
to
more
materials,
more
manpower,
our
and
The
energy,
more
we
get it from sea
problem again.
us who have
There
are
about
regarded America as be¬
country richly endowed
water
miles
in
almost inexhaustible sui>-
to do
to get
those
are
always
a
with
an
need more so¬
phisticated
materials — metals
;with a higher melting point; with
-a higher yield strength; which are
-corrosion resistant; plastics of un-
properties
stable
usually
■
and
.crystals with properties which are
into
designed
tials
into
are
which
be
can
kinds:
stored
found
those
and
earth
two
these
get
we
materials
construction
divided
The essen¬
them.
which
from
which
the
raw
present age, they
:
magnesium in
of
materials—coal; iron
ore, copper, oil, tin, etc. /We are
also aware, that as engineers and
designers
begip
to
create/, the
more
complex machines of the
of
ply
inexhaustible be¬
cause
mind, let us look
in
materials
the
ing
during the Ko¬
The supply of this
metal is almost
this
With
at
magnesium rose at a
rate
buildup.
rean
gineers.
There
of
use
spectacular
en¬
more
fuels, is a drain on one of
irreplaceable raw materials.
fossil
will I need
"More"—we
be
must
economy
our
those
in the
grow.
we
ones
stored
in the earth are much like
capital
Unfortunately,
the
price
ergy
:
the
million tons of
cubic mile of sea
a
there
and
are
ocean.
have
we
magnesium is to pay
the price again is
kilowatt
of
hours
en¬
'>■
pound of metal.
per-
Titanium—A Newcomer
,
Titanium is
.a
•
,
the
to
newcomer
metals
wonder
field, highly cor¬
rosion resistant, very tough' and
strong. It is in urgent demand, it
be
can
from
which
titanium-
produced
bearing.
sands
appear
to
be
quite plentiful. " Our produc¬
tion is rising at a spectacular rate
—from
in 1950 to
year
of
hundred
few
a
fortunately,
ent
of
we
titanium.
Thus,
even
titanium costs
been used they are gone
per
kilowatt
one
reduce
assets, for in general we can use
them only once.
Once they have
12
Un¬
pres¬
use
to
pound
of
must
magnesium
of
per
projected* level
however, with
processes
pound
a
tons
10,000 tons in 1955.
over
one
and gone
forever.
They are not available
for further use by us, by our chil¬
lots of cubic
All
and
"12
about
a
water.
us a
hours
minimum
of
energy
pound.
It
is
that
as
also
we
painfully
use
apparent
up
our
own
plies of metals and
raw
materials,
class, because we can burn them
pendent
only
or
our
once.
children's
To a
large extent
so
do
many of the primary metals,
such as tin, lead, and zinc. Much
of
the
tin
we
use
as
a
thin
pro¬
we
become
more
upon
our
and
more
neighbors.
by 1970 this country has
lation
of
sup¬
a
de¬
If
popu¬
200,000,000 people with
a
national
income
approaching
$500 billion, we will be importing
But, just
electrical
will
so
1975,
we
other
according
BTU
per
until
uses,
difficult
trillion
staggering
to
compre¬
hend.
Those
power
requirements find
venient to
who
study
another
use
by
estimate,
one
68,C00
This
year.
is
amount
will
to
about
use
use for
increase,
our
as
purposes
our
will
world
it
unit,
con¬
Q,
a
the retired and the handicapped, especially if they have or
women,
can
be trained to have the needed
This
talent.
requirement
is
not
always appreciated for the manpower
sonal
situation
is always
consideration
vidual concerned.
To
a
per-
a
indi-
the
to
carpenter
out of work there is an over-sup-
evitable that as the
simplified the job and
skilled artisans by
machines
replaced
those of lower
skills—the machinist by
the ma-
chine operator, for instance—that
unions would spring up to support the sagging wage rates by
bargaining and by the insistence
of shorter hours and shorter work
It is inevitable, also, as
one
trillion
billion or ply of manpower, and to the man- weeks.
Thus, the United States ufacturer who needs three more the cost of labor is further sunelectronics engineers and cannot ported
artificially by minimum
power requirements in 1975 will
be roughly 1/16Q per year.
laws, that manufacturers
To get them, there is a shortage. We -wage
know now that there is a pro- ^fll lurn to machines to eliminate
give some idea of the amount of
shortage
of
manpower
The new
energy inca" Q one may
recall jected
that it is the
energy
contained •--Which becomes more acute with -sldgah"'is*^U worth sitriplification
-there*Is
in about 34
billion'- tons of the "the shorter working day and the but work
which
is
10IS BTU.
best
look at the past,.
The .story of
en¬
lis
:fairly ...well ■ docuriie.nted. 'Tf vve, Use: the Q/ as .the
ergy ; use
unit "of
it now appears
that from the beginning of time
until now, civilization has used
about 13Q's of energy. We know
the rate of use is rising very fast.
By
Q
a
per
the
by
be
world
the
of
pected
will
year
using
was
year.
It is
2000
a
ex¬
that
it
using
at least one Q per
This estimate, then, at least
year.
gives
we
energy,
1947
tenth
us
measure
some
of
what
happen by the year 2000 for
can
determine
estimating
our
energy
our
position by
capital as¬
sets.
best estimates
are
that
we
have underground less than one Q
in the form of oil and gas.
We
have
some
68
from of coal.
this
-in
coal is
Q of energy in the
Unfortunately all of
not
readily available
retired people, and
which normally
fyandicapppd,
in
have been
«
reserved for men.
this
In
work.
t^^^achiHe.eitpir
:-tO.
jobs
out
also know that there are men
of
man
we
their
women
a
must upgrade people -him."
jobs and must-use the
trjievthat -
'.now.that
area
economic
feared
that
every
telepfione
op-
would be out
not
of work. Nevertheless, the 1950
carpentering, or from plumbing Federal census shows that the
to electronizing. Perhaps this was number of telephone operators in
always so but the need to move this country increased by 159,000
is
great, for laborers do
easily move from laboring to
friction
into
is
occupations
new
new
a
phenomenon.
In
the
ulation
farm
was
stable,
laborer
the
became
a
of
son
farm
a
la¬
supply and demand
for farm labor was leveled out by
borer and the
disease
laborers
*
and
did
and
war.
starvation,
Sons
of
by
farm
not aspire to be
en-
gineers, school teachers or entrepreneurs. The nobility alone supplied the manpower for the proas they then existed,
as
fessions
erator in the country
or
79%
in the previous 10 years.
But let
Middle Ages when pop-
prosperity,
The
We know
•shorter Working week.
Pennsylvania coal..t
Again, we can get spme in¬
sight into the future by taking a
will
children.
Coal and oil clearly fall into this
dren,
tricity.
us
suppose
for the sake
of argument that our newest automatic machinery, equipped with
giant brains, the brains of the
earthworm, are capable of elim-
inating some of the people at
the
moronic end of a scale of
industrial skills. What does it do
to the upper end? The first clue,
more
of course, comes from the complexity of modern machines, not
only the machines which make
machines but the machines we use
Volume
182
Number 5472
.
.
.
The Commercial and Financial Chronicle
in
everyday life.
Compare, for
instance, the modern television
ing
receiver
able; but the
crystal
audience
one-tube
it
old-time
can
and
there
early
are
days
who, in
radio, took a
many
of
tube, wound
the coil
up
I
am
that there
wager
vexing
one.
automatic
Look for
are
We
to
stay and
with
the
decisions
The
purchase
the
mercial
armed
St.
forces.
Yet
the
Spirit
Louis, which Lindberg flew
the ocean, was
conceived,
across
built,
tested
finished
and
its
epoch-making flight between Feb.
23 and May
21, 1927.
The
will
pressure
towards
which
always
be
more
complex machines,
require more highly
will
trained
manpower
ception
and
in
their
con¬
design.
There is a
steady, relentless pressure placing
a premium on
higher skills. Over
laborers
years
will
tend
to
become
artisans, artisans to be¬
engineers, engineers to be¬
scientists, and the supply at
come
come
will
be
results
problems but the
only be good. Auto¬
many
can
is
the
mechanism
end
upper
of
the
scale
and cannot meet the
of
loan
gage
lateral
the
10
page
In
for
particular mort¬
the
at
bank
time
the
it
accepts
com¬
col¬
as
its
loan, however, the
loaned
against
such
a
amount
mortgage
is
determined
the
by
lending bank in its best judgment,
having in mind a demand for in¬
vestment, the mortgage market,
and other factors, at the time the
is
line
set
Over
up.
period
a
of
approximately five years, we have
loaned against mortgages of this
type in amounts varying from 90%
of
of the total commitments
fact
that
building market and has contrib¬
making and maintaining a
steady progress of home building
from the planning stage to the sale
The
Demand
for
possibly 50,000
new
graduates
in
the field of
engineering. The col¬
leges of Amerjfia are graduating
abaui22,000.
every
of
inevitable that
graduate has
new
offers
-
jobs.
The
several
question
is,
"When will the supply equal the
demand?" It is my belief that un¬
transaction fees
ment fees
ranging from % of 1%
Again briefly, the method of
eration is somewhat
op¬
follows: A
as
Of recent
less-the
upward progress
eeonorny
bkdly
be for
There
our
stumbles, this will
many
is
of
years.
evidence
good
some
which points in this direction. For
instance, in examining our gradu¬
at
the
Pennsylvania
State
University in the field of civil
engineering over the past few
ates
years,
find that
we
graduated
one
man
we
Q.
I.
an
sufficient
of
condition
120
Thus, al¬
is not a
for
gradua¬
tion, at least tentatively,
claim it
that
lation
if
as
a
10%
of the
this high.
can
we
I
necessary one.
only
scores
not
who has had
I. Q. of less than 120.
though
have
am
popu¬
Therefore,
male
graduates of the high schools this
we
can
expect
1,600,000
only 160,000 of them are
capable of meeting this necessarv
year,
condition
for
in
graduation
civil
veloped
loan
permanent investor has de¬
a
termined
that
in
definite
amount
vest
mortgage,
the
his
the construction
financing in such
is usually arranged locally
a
bank or other lender in
case
with
In order to
area.
prediction, if I
may
be
the
temerity
to
make
that here is where the im¬
one,
of
pact
most
automation
acutely.
We
will
be
will
need
highly trained men to carry
our
the
program
program
cause
of
felt
automation
out
and
will be delayed be¬
of the lack of such
people.
which
ents
his
to
Directors
Line
correspond¬
enables
the
corre¬
spondent
to maintain the volume
of investment required without in¬
be
of
a
rail¬
of
At¬
Louisville
and
for
it
is
shortly after the
granted
policy
of
extra
pretty
that
well
the
declaring
will
be
taken
established
year-end
a
continued.
Greater
speculation surrounds the possible
action
New
of
York
Pennsylvania.
Central
While
and
neither
of
these has been in the regular divi¬
dend
paying
column
very
earn¬
both
considered
are
mated
that
and
have
to
ex¬
(prospects for the
Also,
year.
of
year
both
the
they intend
liberal with stockholders
ings
Thus, extras
are
at this time, with the
for
Central
the
are
distribution
larger
some
of the
of
expected
the
two.
analysts who
speak
even
extra
Valley
will
declare
an
this month.
Aside from these
after
all
of
are
investment
importance, there
number
of
for
where
roads
clear cut evidence
looked
extras, which
minor permanent
in
are
more
of optimism
the
nature
is
in¬
of
creased
regular dividend
rates.
Chesapeake & Ohio and Illinois
Central
this category. It is expected that
the former will earn at least $7.00
paid
mentioned in that there is
a
the
of
source
such
inite
payment.
Inasmuch
all
as
this
planning
takes place, necessarily so, months
in advance of the actual comple¬
tion
sale
and
possibly at
of
the
time when the
a
investors in
manent
house,
the
and
per¬
field
market for
a
of
out
one
the
reason
facility of this kind is
lute
essential
to
another,
the
an
abso¬
continuous
orderly economic operation of
ating homes.
As
I
have
pointed
out
the
amount
this
type of transaction
which
is
cre¬
before,
loaned
in
is deter¬
mined by the bank but one of the
other
conditions in
the
overall
chaser
that
of
property to whom
the mortgage loan will be
granted,
qualify credit-wise and show
can
his ability to carry the charges on
the mortgage as well as any other
indebtedness
he
may
have
in¬
curred.
Commercial Bank's Role in
Inventory
I
like
would
the
to
to
Committee
that
opinion that most of the
it
is
out
my
commer¬
cial banks which have engaged in
this type of
financing have not
cepted every application for
of
credit
in
that
rather
but
their
there
was
was
they
own
a
made
to
a
ac¬
line
them
determined first
opinion, whether
demand
for
to
realize
no
that inasmuch
housing
as
there
commitment for the purchase
of the mortgage
may
become
vestor.
As
in existence, they
the permanent in¬
|
guide and purely as infor¬
for the Committee, in the
years which we have been making
this type of financing available,
our experience has
been that we
have acquired less than Vz of 1%
a
mation
$3.00
and
advises the commercial
The
deliver^
has
commercial
mort¬
bank
that
been
bank
made.
loans
the
originator against thos& mortgages
and in turn gives the permanent
investor the right at any time be¬
fore the expiration of the commit¬
ment date, to pick up those mort¬
from
gages
the
commercial
and in
doing so, balances
folio at all times.
The
forth
facts
and
its port¬
clearly
set
indi¬
the
mortgage and home building
industry in this country in pro¬
viding short term construction and
mortgage
filled
a
inventory loans.
definite
very
per
It has
need
and
year,
the
at
annum
present
in the
time, is expected to earn
neighborhood of $9.00 this
The road's cash
ably
be
year.
needs may prob¬
considered
somewhat
heavier' than
those
of
stock
back
nual
to
the
traditional
that
payments
an¬
prevailed
so
long prior to the depression of the
This would mark the real¬
ization
back
the
of
economic stops and
or
have
to this time.
always existed
starts
prior
The net result is that
which
the
of
one
debt
taken
by
those
that
long march
spearheaded by
was
most
retirement
comprehensive
programs
under¬
other than
through judicial
road
any
went
reorganization.
Another meeting that is looked
forward to with considerable in¬
payments
were
held to this level
in the face of
high earning power
because of the participation fea¬
it has enabled the building indus¬
ture of the
try to properly plan and take ad¬
this
the economies
vantage of all
sulting from
planning,
such
to deliver to home
quality house
at
owners
a
re¬
and
better
cost which
a
is
certainly below what could have
been
accomplished
of
other method
under
building hereto¬
preferred stock. With
preferred stock now elim¬
inated,
the
habilitation
the
first
meeting
of
the
They look for no change in
this procedure, which would
mean
year.
postponement of
action until
any
January.
IDAC Sponsors Film
On Sees Investments
TORONTO, Can.—The benefits
of securities
made the
ture
investment has been
subject of
motion pic¬
a
by
the Investment
Association of Canada.
The
film
"A
Matter
tance," is written
by Crawley Films
tells
the
dreams
story
of
of
Impor¬
produced
Limited and
of
a
that
so
Dealers'
and
spending
car
it in competition.
who
man
$500
he
on
his
enter
can
However, trag¬
edy
strikes
when
his
sister's
husband dies suddenly. As exec¬
utor, he is surprised to find that
his
brother-in-law, through the
purchase of investment securities,
has
left
his
sister
comfortably
supported.
The
him
unexpected
money
can
legacy
shows
through
grow
careful investment.
He decides to
forget the sports car competition
and put his small stake to
work,
through counsel of an investment
dealer.
He has the satisfaction of
knowing
that
saves
and
closer
to
dollar
every
he
invests
brings
him
day when he and
his family will attain a measure
of
the
financial
"A
independence.
Matter
of
Importance" is
a
16mm., 16 minute film designed
showing to the general public.
for
It
is
available
from
the
Invest¬
Dealers'
ment
Association
of
Canada, 170 Bay Street, Toronto.
Producer is George Gorman who
has produced several outstanding
Canadian
films.
heavy
property
re¬
Hill, Darlington Go.
New NYSE Firm Forms
Hill, Darlington & Co., 41 East
42(nd Street, New York City, will
be formed
in the
as
of Nov.
1.
Partners
firm, which will be
of
ber
the
New
York
a mem¬
Stock
Ex¬
change, will be Thomas W. Hill,
Peter Darlington, Henry Darling¬
ton, Jr., who will hold the firm's
Exchange membership, Ernest M.
Fuller and Samuel B. Morse gen¬
eral partners, and Henry Darling¬
limited partner. Peter Dar¬
lington and Thomas W. Hill were
formerly partners
in
Cosgrove,
ton,
Miller
largely out
way, and estimated earn¬
ings of at least $9.00 this year it
of
&
Whitehead.
program
the
is felt in many quarters that more
liberal dividend policies will be
instituted.
any
One
act
on
this
fore attempted.
coming
at
year
road's
in that it has enabled the
planning, construction, continuous terest is that of Western Pacific.
employment of labor, creation of Ever since it came out of reorgan¬
products that go into a house, sale ization the road has been paying
and financing of homes through¬ $3.00 a share per annum.
For a
out the country without the sea¬ long time it was considered that
purpose
early this
liberalization of the
Southern regularly establishes its
dividend policy for the
relatively
Chesapeake & Ohio but most an¬
alysts feel that a rise at least to
$3.50 is in prospect to bring the
1930s.
statements
should
above
bank
cate the commercial bank's role in
which
point
in¬
the
vestor at which time that investor
good
in
permanent
the
to
roads
are
for
approved
delivered
sonal
Loans
also
is
share this
major
they
commitment
chaser
the
are
with prospects
bright for further gains in 1956.
Traditionally the $3.00 dividend is
very low in relation to such earn¬
ings. Illinois Central, also paying
are
mortgage
or
def¬
gage, the documents are examined
in advance, the credit of the pur¬
a
temporarily
in which there
demand for
a
time
perhaps
The present regu¬
or more.
pect that such action will be taken
at this time.
They point out that
sports
housing. This type
of financing differs from the other
and
all
new
results
dividend is widely
expected close
followers of the road do not ex¬
to
There
possibility that the smaller
Lehigh
a
earn¬
permit.
looked
be
as
as
is
off
a
share
While
year.
inti¬
be
to
needs in the
areas
$13.00,
manage¬
have
roads
ticular bank wants to know and be
a
reach
with
long,
both have scored substantial
ings gains in the current
satisfied that when the job is done,
their construction
loan
will
be
is
permitted
of
induce that
and
It is my
in¬
terruption, breakdown and cutoffs,
bank to loan construction funds, which in turn enables the building
in practically every case, that par¬ industry
to fulfill the
housing
that
technicians, and arti¬ in the area and an economic pos¬
sans
at
their
highest
possible sibility that that demand would
skills for not for many vears will continue for a reasonable period
they be able to obtain all the peo¬ of time. In other words, any bank
ple needed at these higher levels. making loans in this category has
neers,
to
out
portfolio during that
He in turn issues forward
commitments
all,
dollars
arising
present
period.
of
of
normal amortization payments on
intermediate
engineering.
I am further told
approximately one-half of line of credit is that the house that
who graduate from is to be built is of a type which
high school never feel the need there would normally be a demand
for in the area and that the pur¬
or are moved to go onto a college
lear(n to use engi¬
in
originator the financing of the
project. This will involve several
the young men
industry must
future period,
he will have a
a
years,
will
it
middle of the month and in these
instances
ments
third type of mortgage
inventory loan and in this type of
plan of construction for a
group of houses and arranges with
First
Coast
cellent earnings
a
overall
that
education, much less one in engi¬
neering. I am further told that
only about half of the students
who wish to go to college are fi¬
nancially able to do so. Therefore,
by quick and admittedly approxi¬
mate
arithmetic, one finds that
only 40,000 students per year have
the necessary qualifications and
means
to obtain an engineering
education. In this 40,000 we must
expect to find our engineers and
also our other professional peo¬
ple, the lawyers, doctors, minis¬
ters, etc. It is not surprising, then,
that the engineering colleges are
unable
to
produce
the
50,000
graduates industry demands. One
thing is certain and that is that
a
vintage there has de¬
usually two
steps.
securities.
coming
commit¬
or
to iy2%.
a
of
Forward Commitment Loans
approaches
a
mortgage
originator and submits to him an
Engineers
placement of
the
set up
that
& Nashville meet
uted in
hands
to
lar rate is only $3.00 a
share, with
an
extra of $1.00 paid
expected
lantic
funds into the mortgage and home
mortgage in the
permanent investor.
pected
ally
type of financing
again has assisted and been re¬
sponsible for the steady flow of
permanent mortgage
investment
the
parade of final
peak
road
this
of the house and the
the
happy month for holders
have
we
October
dividend declarations for the year
begins and this year it is gener¬
issued, which should point out the
principal amount of the
mortgage to 97V2%, and we have
will
demand.
This year there is a demand for
told
by
which engineers will lift the bur¬
dens from the backs of men.
builder
an
per¬
"Warehousing"
Oi Mortgage Loans
that it
seven
years from the con¬
cept of the idea to get a modern
fighter into production and use by
not
are
the greatest innovation of
industrial revolution.
There
our
built
ever
told
are
from
few in
very
takes
not
haps
29
Generous Rail Dividend Payments Expected
moment at the mod¬
a
airplane.
the
is here
machines
Continued
is, of course, the complex¬
ity of the mechanism.
the
power to make
mation
Automation
reason
of
completely solved,
always be the most
will
television set that worked. The
ern
problem
manpower
be
never
it
equally willing to
this audience who have
-
problem is a press¬
problems is solv¬
energy
crystal set, built it and made
a
work.
a
one;
regenerative
cardboard
for
the
I will wager that in this
or
radio set.
the
against
as
The materials
(1541)
F. P. Ristine Branch
TOMS
tine
&
office
other
major
railroad
will
its final 1955 dividend late
month.
That
is
Southern
RIVER, N. J.—F. P. Ris¬
Co.
at
has
opened
branch
a
16
Washington Street,
under the management of
Harry
A. Isaacs, Jr.
Railway. This road has established
a
Johnston Fund Reports
The Johnston Mutual Fund Inc.
phenomenal
strongly
bolstered
1955,
net
of
assets
to $20.92 per
Sept.
on
$4,352,148.07,
30,
equivalent
share. This compares
with
$3,092,833.47
1954,
and
$17.81
on
per
Sept. 30,
share ad¬
justed for the 2-for-l split of the
Fund's
shares
on
April
11,
1955.
Laidlaw &
New
territory
operating efficiency
improved substantially
by dieselization, modernization of
the important yards, mechaniza¬
New
1
Co., 25 Broad Street,,
City, members of the
York
Nov.
served
has
of
by
Laidlaw Admits
recent
growth
characteristics
reports
in
record
The traffic trend has been
years.
the
and
been
tion of
debt
lined
maintenance, etc. Also, the
structure
and
has
been
finances
Finally, earnings this
are
stream¬
strong.
year are ex¬
York
will
Laidlaw
to
Stock
Exchange,
admit
limited
Ethel
on
Colton
partnership.
Benjamin R. Nichols
Benjamin
R.
of the American
passed
away
Nichols,
Stock
Oct. 4.
member
Exchange,
30
The Commercial and Financial Chronicle
(1542)
ness
Bank and Insurance Stocks
By ARTHUR B. WALLACE E
==
of
wave
bank
shows
mergers
no
indication
jrom first
the
Fundamentally,
at
tre/iu
is
based
on
competition
among
willingness of many smaller institutions to sell out
inflated values, for a variety of reasons.
on a
Competition enters into the situation because, with the great
geared to take care of its
bank's services, to be sure one that
growth of industry, the banks must be
Consider only one of a
needs.
well be regarded as its most important facility: loans. UnderFederal banking law a nationally chartered bank is permitted to
lend to one borrower 10% of the bank's capital and surplus; under
may
New York law
a
State-chartered bank may lend 10% of its capital,
%
Obviously, as industry takes on greater size and has need for
greater borrowing, a bank, if it does not grow, too, in its capital
surplus and undivided profits.
customer's needs.
account will not be able to meet its
lias been
Tnis factor
compelling forces behind some of the larger
of the
one
mergers.
Let's Curb Role of FHA and
VA in the
personnel. Banking has long
step-child and a whipping boy of the political radicals,
probably because of the suspension of so many banks in the de¬
pression of the 1,930's. Parenthetically we might ask why the
Federal and State supervisory authorities allowed many of the
country's banks to get into a shaky condition then. The banking
field has not attracted enough younger personnel, which has re¬
sulted in a dearth of trained executives; and in not a few cases the
desire to acquire both executive and other personnel has been an
Costs of
provide
will
Government
a system of mutual mort¬
insurance, and for other pur¬
poses." Bankers and other lend¬
operation have often, indeed, almost always, been a
the
throes
corporate
severe
dis¬
of
branch
It
tne
trend
of mergers between
banks
can
systems.
Here the major bank is faced with a problem.
new branches in a large city's periphery, or
either establish
it-can endeavor to buy up smaller
costs of
several
building
new
neighborhood banks. At today's
offices, the merger route is far better, for
reasons.
First, it is usually less costly, as it requires from five to ten
brand-new branch on a profitable basis, whereas if
acquired going business is not already on a paying basis it can
usually be made so. Secondly, merging an existing neighborhood
bank largely disposes at once of the personnel headaches for the
an
successor
institution.
have
the supervisory authorities who
often loath to permit the opening of new
Thirdly,
jurisdiction are
offices, particularly if the area involved is already ade¬
quately served by existing banks.
The move to expand branch systems of banks to the "uptown"
areas and the suburbs of course is practically forced on the banks
by the movement of population and industry to the outlying sec¬
tions of the big metropolises. Here such factors as car parking,
better highways, more people operating more motor cars, etc.,
enter the picture.
Probably the two strongest reasons for the
growth of the suburbs are, first, the better economic status of most
workers who aim at owning their own homes in the suburbs; sec¬
ondly, the moves of industry to set up outlying branches; in other
words, decentralizing. These two reasons are to some extent com¬
plementary as one reason why industry moves out of the congested
branch
centres is because that is
lation.
of
trend of
a
sizable portion of the popu¬
What is probably a less important influence is the desire
of both
case
a
industry and the worker to get out of bombing
range
in
war.
The
large bank with
a
branch system has to take its facilities
to the
people, as the latter will do their business with the small
neighborhood bank, rather than go a distance into the centre to
do their
banking under today's conditions of difficult traffic and
parking.
The trend is
set, and, unless legislation interfers it is likely to
further. The old unit banking system had to give way to the
new, because of changing conditions. The banking system will be
stronger; and it is better able to serve its customers than at any
time in the past.
If legislation interfers, it will be on the basis of
imagined
monopoly or curtailment of competition. There can be no monopoly
in the banking field. Competition in it is as keen as in any busi¬
go
these people had been tempo¬
rarily deprived of the privilege of
home ownership as a result of war
service, and Congress sought to
make
home
price
encouraged
and
the loan.
And yet, FHA pro¬
vided at the outset for 80%
to
be
insured
loans
by mortgage insur¬
premiums paid by borrowers
into
reserve
funds!
Statistical
No
Experience
The project was proposed with¬
the benefit of any statistical
out
experience
kind
the
of
upon
which insurance rates usually are
based.
had
It
already been proven to be a
hazardous field of under¬
Private
mood
no
undertaken in what
was
writing.
to
capital
tackle
was-in
underwrit¬
an
There¬
ing venture of this kind.
was necessary
Government to
eral
extent
of
000,000
as was
not
for the Fed¬
launch
the
establish the
through
very
limited
to
lenders
the
to exceed
$1,000,first stipulated!
The greatest unknown factor in
estimates
the
of probable under¬
experience and ultimate
writing
of the project arose out
previous experience with
extreme ups and downs of busi¬
ness activity.
The National Hous¬
ing Act consequently
provided
outcome
the
of
years to get a
bution from the borrowers. Many
of
of little value.
to
of
contri¬
any
the guarantees often proved to be
Their securities and
guarantees
accompaniment
the Federal
lenders to make the loans by re¬
ducing
the
likelihood
of
loss
through guaranty of a portion of
suffered
guarantors
illusionment.
of
An
by
without
purchase
endorsement
and
large size has been that of the metropolitan banks acquiring
sustained
the
confidence
to work to the disadvantage of the latter.
be
ownership easy by
loans equal even to 100% of the
enterprise
of
to
place
to
the
that
Federal
Government
principal
interest
might
be obliged to issue in exchange
for
properties acquired by ap¬
proved mortgagees through fore¬
closure.
Reliance was placed on
the mortgage insurance premiums
to indemnify as far as possible for
guarantee
estimated
ment
and
FHA
which
debentures
of
losses
and
the
assumed
the
govern¬
unpredictable
risk.
Assumption of this risk by
was clearly jus¬
tified by the desirability of en¬
couraging home ownership on the
part of a greater number of peo¬
ple and the expectation that a
the
government
loan
pattern of this kind which
made borrowing easier would in
turnj stimulate the buildingundustry and assist in the recovery of
business from depression depths.
Even
though the FHA seemed
extravagant and extreme at the
time, 80% loans were only a be¬
ginning! The loan ratio on 1- to
4-family houses
gradually was
raised
to
95%,
and apartment
house loans during the war fell
into
the
well-known
"windfall"
status in which substantial profits
reported
were
from
tracted
ceeds
even
have been' ex¬
the mortgage pro¬
to
after all land and con¬
inception to May 31,
FHA had insured $37,506,168,000 of loans, and the Veterans
Administration
had
participated
in $28,582,941,000 of home loans
on
which the guaranty was $15,548,168,000. As of May 31, 1955,
outstanding FHA insurance to¬
1955,
taled
$18,637,697,000,
and
VA
guaranties approximated $10,000,000,000. Out of mortgage loans on
1-
The
by
guaranty
to
the
of
veterans
so-called
home loans
provided
"GI
Bill of
was
Rights" enacted in 1944 to express
in part the gratitude of a nation
4-family homes outstanding
the
43%
of
amount
June
on
30,
had
$82,800,000,000
approximately
1955,
been
underwritten
di¬
rectly by the FHA or VA, to say
nothing about other activities of
the
or
Federal
Government
directly
indirectly in the mortgage field,
such
Federal
as
Mort¬
National
Association,
gage
Federal Sav¬
Insurance Corpo¬
ings and Loan
ration, and similar organizations.
Even though these figures illus¬
trating the scope of government
guarantees approach impressive
proportions, all but
small por¬
loaned came
from private savings institutions.
of
tion
The
the
a
money
Monthly Mortgage Loan
Mortgage
lending has come a
long way since enactment of the
National Housing
Act in 1934,
due in no small part to influence
exercised by the Federal Hous¬
ing Administration.
During the
past generation, we have watched
the
monthly
amortized
mort¬
loan not only come into its
own but reach the point at which
it is taken for granted as stand¬
ard
mortgage
operating proce¬
dure.
The fully amortized loan
did several things:
gage
the
Provided
(1)
with
borrower
lo*g-term loan with com¬
a
plete liquidation over the pe¬
riod, and-elimination of the oldshort-term loan, with the
necessity of frequent and expen¬
sive renewals;
style,
(2)
with
a
which
Provided
the
borrower
monthly debt payment
included principal, inter¬
est, and one-twelfth of insurance
premiums and taxes, thus avoid¬
ing the accumulation of large
obligations
the
borrower
may
have overlooked;
(3)
Provided
the
borrower
the
the
with
loan
a
which
on
the
pay¬
linquent without the lender be¬
ing on notice and in a position
to
take remedial steps.
Introduction
loan
of
the
monthly
generation
ago
payment
guaranty at first was limited to
$2,000 and not to exceed 50% of
the loan, and since has been in¬
creased by steps to $7,500 and not
to exceed 60% of the loan.
The
served
practically the same basis as the
purchase of refrigerators, auto¬
mobiles, television sets, and other
articles which have been made
VA
possible
is an outright en¬
portion of the loan
Veterans Administration
guaranty
by
and
the
a
the borrower makes
no
con¬
tribution to.the guaranty as is the
case with borrowers under FHA
loans.
Losses,
if
any,
of
course,
to
because
a
place home buying on
consumers
largely
the extension of in¬
for
of
buying.
Home financ¬
words, has become
a
facsimile of the financing of
consumers' durables, and if one
stalment
of
with
that
willing to consider a house as
before
review the
we
of
some
the
the
fi¬
loss
record
during
on
recent
Apparently loss statistics
financing as an
industry
not readily
avail¬
examination
of
the
by some of the
major finance companies even
during the depression years re¬
are
able,
but
losses
incurred
veals
that
1%
of
more
they
the
reached.
never
receivables.
prosperous
ratios of
course
During
years, the loss
have been much
less,
even
almost
insignificant.
By way of comparison it is of
interest
to
since
its
1953
note
had
that
in
FHA
exceeded
the
end
18/100 of
loss
of
in
consumers'
the
1%
of
in
year
of the in¬
outstanding.
of
record
companies
been
year
foreclosures
mortgages
The
no
inception to the end
at
sured
the
the
finance
financing
of
has
durable
goods
favorable
impressively
be¬
these
cause
companies adopted
patterns and methods dictated by
the
nature
of their business, and
though the FHA experience
has taken place during a period
even
of
unusuallv
favorable
has
business
prosperous
conditions, it
that FHA's
appears
foreclosure
resulted
from
also
record
the
loan
pat¬
of
pursuit
tern
and
diligent
monthly payments as rapidly as
they become due. The same may
of
said
be
home
GI
and
conventional
loans.
The
financing of a home on a
monthly payment basis, falling
within
the
scope
of instalment
financing,
necessitates that
we
must
adopt
in
our
business,
methods very similar to those of
the
finance
companies.
This
means
a
detailed
following of
every item and every instalment,
sometimes
with
almost
mechan¬
ical
exactitude, but never fail¬
ing to have at hand a generous
supply of the milk of human
kindness and the depth of hu¬
man understanding.
Distinguish Between Mortgages
Thus
far, the expression "mort¬
lending" has been used in
gage
the
broad
of the
sense
word
and
has included FHA loans, GI loans
and conventional loans, but fur¬
discussion
ther
before
unusual
VA
and
of
the
question
cannot avoid recognition
us
the
of
nature
loans.
As
of
FHA
matter
a
of
fact, it is unfortunate that finan¬
cial
institutions
the
nized
have
not
unusual
.
recog¬
natures
of
these loans and adopted
the prac¬
tice of showing them in separate
classifications in
instead
of
under
their
them
heading
general
a
statements
grouping
"mortgage loans" as is
monly the practice. For
of
so
all
of
com¬
purposes
classification,
mortgage loans
today include conventional home
loans, FHA loans, VA loans, in¬
dustrial loans, commercial loans,
and
many
other types if
the
classifications
detailed.
sufficiently
are
There
vast
are
differ¬
between conventional home
and
loans,
even
FHA
loans
and
VA
though they have the
security. Per¬
time will come, and
basic type of
same
haps
the
soon, when a mortgage loan port¬
folio will be broken down at least
the
three
of
into
loans,
tions
tional,
FHA
bond
as
major classifica¬
that is, conven¬
and
VA
accounts
loans, just
areVbroken
into various major types
bonds, such as governments,
municipals, railroads, public util¬
ities
and
industrials, and thus
clearlv portray the real nature
down
of
of each mortgage loan portfolio.
When
ing, in other
is
a
as
instalment
loans
to its servicemen and women. The
dorsement of
for
ences
(4) Made it impossible for the
to become heavily de¬
category
companies, comparing this
years."
for rent;
borrower
a
durable
financing of
same
suggests
records
ments, if properly set up, approx¬
imated what he would be paying
struction costs had been met.
made
to
in
consider
financing of consumers' other
process
its
From
in
are
except for
consumer's
a
in
record
growing out of loans purported to
represented 50% or 60% of
value. Many holders of so-called
"guaranteed" mortgages
bearing
branches of large banks and small institutions increases, this ex¬
sure
most
a
have
fore, it
factor is
of
distressing foreclosure experience
very
in mergers.
in
were
ers
strong motivation. An FDIC graph for 1954 shows that banks with
deposits of $1 million or less in that year ran a 2.40% ratio of
expenses to total assets. Banks with $500 million or more deposits
showed
a
1.50%
ratio.
As competition between
the outlying
pense
as
nance
Mortgage Industry
gage
a
important consideration
willingness
mortgage... loans
ance
Another has been the matter of
been
and
loss
value.
banks, and
The
house
durables
page
of slowing
acquisition of
r^realistic when related to real book
prices so
a
we
field
same
longer term.
a
proceeding further
longer appears to be profitable to compete for the
at
place on
no
then
good,
exactly the
their depositors' funds
over
Continued
down, and probably will not unless some legislative bar is raised
banks
durable
a
house
against them, or unless the factors giving impetus to Lie trend are
altered by changing economic conditions; or, finally, until it no
other
one
the
This Week—Bank Stocks
The
loan in
to obtain a profit. If it is not
bank's books. After all, the banker
has tne bank examiner to consider!
turn
bankable it has
—
borrower who cannot arrange a
The
have.
we
place, has only to lift the telephone to place it in anotner centre;
if it is a bankable proposal he will find plenty of bankers avid to
Thursday, October 13, 1955
...
lender buys an FHA
GI loan, he is not buying
mortgage loan in the conven¬
loan
a
a
or a
tional
or
true
sense
of the word.
Volume
Number
182
5472
...
The Commercial and Financial Chronicle
(1543)
lender
No
in
his
tnis time would
90%, 95 %
a
out
right
oe
100%
or
mind
at
removed
inveiy 10 make
loan
with-
field of FHA
or
real
a
Company just
It
lenders.
words,
GI loans, it repdeparture for the
took
more
ily
original
even
pur-
recently
offer
evolved
and
large-scale
financing
to
in
agency engaged
time for investors to orient them-
other
from
an
"packaged mortgage" loan and
the "open-end" loan have reflect-
studies
ed
and
subsatntial
field
of
of social reforms.
apart-
Federal
a
wide variety
a
larly
in
progress
the
mortgage financing.
By
the
"packaged mort-
adopting
dedicate^ to 1- to 4-fam- gage"
home
ment
less
or
has
agency
it did for other
as
It
proposed
that
FHA
flood insurance!
FHA, in
National
resented
the
was
substantial guarantee. When
Life
first entered the
a
from
FhA,
of
poses
pattern, lenders particuacknowledged the durable
consumers'
goods nature of home
financing.
this
to
FHA loans and
investors
some
later
VA loans, furthermore, have
of in-
pattern
new
vestment and, as a matter of
couraged
fact,
remain
a
been desirable, and interest rates
time has gone on, some, if not
many, lenders have oecome tnor-
have
oughly
nizing
as
convinced that
they
FHA
the
insurance
guaranty,
latter
the
of
particularly
represents
loan.
The
principal and
the
than
50%
guarantee
interest
of
issued under the FHA
tract
of
loan
guaranty
terms
obligations
law
of
obligations
VA
specific
unconditional
the
Government.
con-
the
by
are
the
of
and
of
deben-
tures
insurance
*
United
As
States
unconditional
of
the United States
they
become
for
credit purposes, of equal binding
effect
with
the
obligation
expressed in a government bond.
Government,
The
Committee
Finance
with which
company
ileged
am
associated,
be
to
far in
I
the
of
priv-
goes i so
its
thinking that it is willing to buy FHA and GI loans
solely on the guarantee, provided
a borrower
of good credit standing is obligated on the loan. This
attitude reduces origination costs
the
increases
and
net
responsibility
teed
make
to
that they
extent
of
ernment
endorsement.
private
'
sibilities of trusteeship and encouraging FNMA and VA direct
lending .activities with government funds and at possible ultimate
Mortgage
the
to
expense
taxpayer.
bankers
not
only
will be warranted in advocating
that FHA and VA lending activ-
ities
bu
not
be further
expanded
also that they be kept on
sound basef This would include
sound administration, with accurate appraisals,-, loan insurance
operations conducted on as nearly as scientific basis as possible,
a
ei
.er
/
loans
so that the insured and guaranloans are competitive with
other available investments, and
termination ol tne activities o
the Federal National
ortgag
^
pressive
and
highly imof
what
the
Voluntary Home
Mortgage Credit Program. Before
lending institutions could organize for this program,
missive
legislation
Federal
was
per-
neces-
but after this had been
sary,
pro-
cured,
the
lending
institutions
compiled an outstanding record
0f providing mortgage credit to
femote communities and
ity
minor-
groups.
p0;nb
as
have
our
industrial
friends> where each year we offer
g
new
modej with streamlining,
fluid drive, remote control, or
eiectronic devices which ring a
when
have
we
reached
the
hmit of safety on the size of debt
borrower should carry. And
ye^ ^ makes a lender feel proud
mortgage
time
r
time,
will
and
continue
to
Gov-
give
lenders
Unless
®"^yer.
.wts snout it iio
nousewDS. ^xes.
times, xes.
Government
that
the
i
ies. ^ inuusd u
must
nation's
be
great
shown
lending
the
has
end
not
been
Because
Finance
cur
Committee
willing to relv upon FHA insurance and GI guaranties, by the
same
token we have been willis
100%
loans, loans
without cash down pavments, and
ing
to
make
to
to 39 years on the term
go
of
loan.
the
government will avail nothing by
seem
may
stitutions
guaranties?
to
care
for
are
that
said
need,
to have
been made upon various kinds of
securities, including real property, and mortgages were foreclosed in the ancient city of Ur,
lem stated
by the question we which was more ancient to the
are
considering
To
the extent Romans than Rome is to us. In
that lenders rely on FHA insur- Greece where banking was highance
and VA guaranties, to the ly developed, banks made loans
same
extent
we
are
departing secured by first mortgages on
from our traditional position as land, and each
mortgaged field
mortgage bankers. Instead of the was marked with a stone in lieu
latter
w*
become purchasers of of the recording of liens at a
government
obligations
merely public office.
In Roman times,
going
through
the
motions
of the making of mortgage loans
accept this insurance and
to
tion
face value,
and ex-
guaranties at
their
these
use
encourage
we
To the
obliga-
mortgage loan.
we
feel an
a
that
tension.
By relying upon guaran-
tees
lose experience in mort-
we
making because reliance on
government guarantee requires
gage
a
little exercise of judgment.
Lending institutions consequently fail
competent
build
to
quate
staffs
ade-
to care for the business of
lending
even
if
the
mortgage
government
it
the^
And
to
were
latter
retire
is
from
wishful
thinking 1
Mortgage
Guaranty?
importance
may
institutions
safely
can
higher-ratio loans without
lending
make
abundant
sanction
FHA
insurance
Already
evidence
of
such
of
loans.
or
VA
there
is
legislative
For
ex-
ample, in New Jersey, life insurance companies are permitted to
make 75% loans provided a reserve
equal to the amount by
which the loan exceeds the unpaid balance of a 66%% loan is
maintained.
In Vermont, banks
and life insurance companies may
make 80% loans
on a 1-to 2-family house provided their officers
0r directors sign a certificate of
stipulation on certain details concerning the property. In New
York,
savings
institutions
are
permitted to make loans not to
exceed 80% of appraised value of
improved property up to $15,000
and then 50% of value beyond
$15,000 provided certain uther
conditions are fulfilled. Federal
savings and loan associations under Federal law are permitted to
a
commonplace
business
transaction, and much of our
present mortgage law is rooted in
Roman practices.
In medieval
times,
restrictions
upon
land
ownership and usury restrained
this tvoe of credit, but after the
re-establishment of private ownership of land, mortgage lending
upon real propertv again became make 80%
loans provided the
nar* °f the capitalistic economy, members of the individual assoPerhaps
because
of
mortgage ciations authorize them.
lending s tong ^story,. tenders
excellent
experience
of
have persisted m thinking of a lending institutions with FHA
mortgage loan as conforming to and qj ioans over recent years
an unchanging pattern, but the adds supp0rt to whatever case
purposes for which home mort- can be made for high-ratio loans,
was
.
gage
Should We Encourage Government
especial
benefit of
extravagant, but the
fact that they may be made emnhasizes the gravity of the prob-
extent
0f
Centuries of history attest to
the need for mortgage loans and
the ability of private lending in-
somewhat"
making
one
intruding further and further into
|be j0an ratio. In other words,
the business.
might
it not be possible
that
Mortgage loans
statements
These
to
further
the
bounds
to
answer
calls
question
for
our
debts
people
taking
are
incurred by most
emphasize
a
different
the
need for
approach
and
j|.
|
must
that
be
the
recognized, of course,
exceedingly favorable
foreclosure experience of the past
an
question
answer
strongly in the negative.
striving
be
to
As men
reasonable,
we
give credit to FHA and GI
loans for the constructive work
must
It must be pointother hand, that
it exists todav has gone
they have done
ed
out,
FHA
as
on
beyond
far
and
the
its
includes
original
financing
purposes
of
slum
defense housing, trailparks,'and other financing fttr;
As mortgage bankers,
we
must
not allow centuries of tradition
to confine our activities or to
restrict progress.
heritage let
us
From
our
long
extract the expe-
rience needed to move on to new
frontiers
of mortgage lending,
Progress
made in loan patterns
during the past generation was
cited
earlier
while
appraising
clearance,
some
er
but
lending
be
of the effects of FHA loans,
in addition to these, the
cal policies been pursued, perhaps the foreclosure experience
would have been less gratifying,
On
the
other
hand,
if
give
any
credit
to
the
pattern
of
monthly payment loans and if
we concede that home financing
really represents the financing of
consumers'
then
we
durables,
might have expected a reasonably
favorable foreclosure experience,
even though business had been
we
take
practical
question calls
affirmative answer,
approach
thing
like
a
might
ex
make
to
the
pracsome-
Amiraisal
of
80%
following
used
as
for
hnsis
same
ioans
0f
q*o/
or.
0
iess.
'
the
amount
of
Zs
program, for
to
the
of
excess
results=
'
(D Demonstrate further progressive thinking on the part of
lending institutions;
to
(2)
the
on
col-
proportionate limit
a
on
enter
a
institution
mits, an experiment of this kind
would accomplish at least two
conditions;
m
Each
could be made against the
fund. While details would have
t° be worked out with greater
thoroughness than time now per-
^nstitutinns
amount
subject
basic
a
be
wimngness
a
given
a
have
to
on
65%
inetitiitinn
lending
ot
basis.
sort
claims for losses
up
amount of the loans in
this:
nartirnlnr
sroun
and
might
this
half of 1% loan interest
would be paid to the agency, and
ex-
safety?
for an
only
institutions
of
ex*ra
ex-
practices
liberalized within
of
propor-
example, 3% of its assets. Each
loan to be included would be
registered with a central agency
established for the purpose, the
is
why lendnot
a
he- involved
it could enter in the
small
a
should
The
tical
would
lending
reason
which
Provide
experience which
could be used to substantiate
broadened activity in such lend-
1 ing
or
persuasively to
strate its undesirability.
,
demon-
same careful selection
jn conclusion, and to summar*
w,
f e usec* ize: Private mortgage institutions
0If l°ans of 65% or less;
since the founding of this coun(?) An interest rate at least try have established a record
/2% higher than the rate quoted which may be cited with waron 65% or lower-ratio loans.
ranted pride.
Government agenonly additional risk asby the lender on this basis
that
the
ments
higher
may
service
from
the
between
the
fact
cies have
mortgage
been
active
market
in
the
during
the
Past generation, but with the exception of the activities of the
Federal National Mortgage As-
heavier debt
sociation and direct lending by
the Veterans Administration, the
the
program
monthly
create
burden
a
for
pay-
borrow-
For example, let us
$20,000 house on which
er.
to
which
FHA
and
VA
point with pride has been accom65% Plished with funds provided by
loan would be $13,000, and an the
private savings institutions
80% loan $16,000.
The monthly of
this country.
The
greatest
.payment of principal and inter- trap into which lenders can fall
est, on the former amount on a *s to assume that we have reached
20-year monthly pavment loan at the end of our ability in
4V2% would be $82.29, and on adapting the pattern of mortgage
the latter at 5% would be $105.60 lending to the needs of our econplus one-twelfth of taxes and omy.
An
alert,
progressive,
mortgage insurance in each case, thoughtful, and yet sound ap¬
In other words, the additional Proach to the problems of mortamount at risk is $3,000.
If we gage lending is the best answer
further assume full payout over 1°. the double-barrelled question
the life of the loan, the addi- with which we started.
tional %% would produce $1,- .
0
048.80 more interest on the $16,LOHG SlSF uGltlGllf
000 at 5% than would have been
wwihw.h
the case at 4V2%. Thus, $1,048.80
RmTAlVC ?1A HAD AAA
becomes available for reserve
DOllUWS 0dU,UUU9lllfU
a
assume
a
purposes on each loan completely
paid out. Nor should it be overlooked that these loans will have
an
average
life of only 10
12
or
years.
Let
80%
0f
assume
75
of
made, or
Let us also
these
completely
terms
and
diately
loans
25
ever
out
imme-
making
from
tax
any
total
20-year
default
Excluding
consideration
a
assume
pay
their
over
that
without
payment.
that 100 of such
are
$1,600,000.
that
a
this
credits
which
might result from losses,
the interest rate differential on
the 75 non-defaulting loans would
produce a reserve of $78,660 to ab-
sorb
cases.
A
losses
on
the
foreclosed
The greater exposure on
the 25 $16,000
loans
as
differential.
terest
is impractical
and
Of
course,
unrealistic
it
to
that no payments would
be made on 25 of these loans and
that the entire amounts in excess
of 65% would be completely lost.
Furthermore, the extent to which
assume
would depend
the extent
on
President.
of
an
initial
in
a
funds
experiment
particular
by
H.
A.
Sawyer/
The loan is at the rate
3%%
and
matures
in
1970.
The proceeds of the term loan
will be used toward enlargements
at
three
and
of
the
company's plants
construction of
000-barrel plant to
Lake
Charles, La.
a
new
be
2,000,-
built
near
The company's
present expansion program is expected to cost a total of $57,000,000
and
will
add
10,200,000 bar¬
capacity,
rels in cement
Chicago Inv. Women
n.
members
Women
this
need not and should not be
large.
of
the
Investment
of
Chicago at the next
meeting on Wednesday,
Oct. 19, 1955, at the Chicago Bar
Association.
The subject of his
dinner
will
be
"The
Role
Photography
in
of
Por-
Today's
Business."
Tb
ti
prPoidpnt
M
the
nhnois
fbP
A
or^aniza-
Kitchen
of
Agricultuml Associa-
/' wm p
nrtide
w;.i
wun
nf
Kenneth
uon' w
a
the meeting
cl-i*
rrdntuin
s*
C™
occs.
:
(Special to the financial Chronicli)
utilized
of
'
_*
CHICAGO, 111.—Karl R. Bresee,
Manager of the Chicago Studio
of
Bachrach, Inc., will address
trait
institution
Ayf
Hold Dinner Meeting
* O
^
kind
been
Hayden, Stone & Co. and Adamex
Securities Corp., negotiated the
placement.
talk
tent to which the reserve is not
used to offset losses means a
higher yield to the investor!
of
of Lone
has
directly with institutional
investors, according to an an-
to
utilized the efficacy of diligent
collect.on methods. And the ex-
amount
Corp.
placed
in
which the lender recognized that
he was servicing a loan secured
by durable consumers' goods and
in
Cement
compared
with the exposure on the $13,000
loans equals 25 times $3,000, or
$75,000, and this is less than the
$78,660 produced by the % % in-
The
$30,000,000 term loan
Star
nouncement
us
loans
f°r thinking of them as instru- iq or 20 years has resulted at
or what in reality amounts to two
mentalities for the enjoyment of least in part from the highly inquestions.
First, should we en- a
higher standard
of living, fiated economy in which we have
courage
government
mortgage again, the consumer-durable ap- Kved> Had war not occurred and losses occurred
insurance
and
guaranty?
The proach.
<
had more orthodox Federal fis- no small part
Now
only
high-ratio
can
The
reached.
our
steps, even if only
perimental, to determine the
sumed
institutions such as the savings ments over the patterns of loans
banks, life insurance companies, we now make available.
value, it behooves them to be less and °ther lenders can ^provide
From what directions will this
critical
of
government
inroads home financing to credit-worthy progress come
in
the
future?
into the field of private finance, borrowers of the future and that
Many, undoubtedly, but perhaps
tee
been
of
institutions
tent
lective
though
eyen
assets
of
group
program
our
further
to
Every alert and responsible lender feejs confidently that the loans
we shall offer 10 years from now
wm present numerous improve-
a
and
the
imposed
meanti
has
amount
ing
a
formulating
expectations
there any good
offer
willing to accept this guaranin
good faith and at face
are
there
Life
provide
to
polici4
^
loans
N„t yet have we arrived at the
association ana direct Lri lenaa^e
gay ^at
m§L
+_
pnnfrrm+
cPPnnri
financing • offers, from
"
Jn
demonstration
of
American
for
bases
lending
lending institutions can do
to
emphasize their ability to adapt
to
changing conditions and to
eliminate alleged need for government lending rests in the activities
the
promise
paV. °,improved patterns of mortgage is that which results
see*
p
31 ill loans. It is challenging to know portion of the loan
to lending.
Does anyone aouot tne
despjte recent innovations. 80%
and
65%
and
States has
the United
interest
recent
very
and
Convention,
should such
case
of
that an unfavorable experience
if incurred, would impose a penalty on the institution
A more
ambitious program would be for
progress,
the Life Insurance Association of
America
no
tion
being conducted
joint sponsorship of
the
great
guaran-
the
its willingness to
expressed
its
a
loans
are
when
insured
or
of
discouraging
thus
play
A
In
experience
in
now
that
as
under
Furthermore,
foreclosure
causes
return.
Lending institutions have
the
free
lenders charged with the respon-
VA
when
more
the
rates,
upon
the
and
maintained
at artificially low levels instead of recog-
may
rely almost, if not entirely,
been
such
Program
expansion
of
foreclosure
Voluntary Home Mortgage
en-
at
times when restraints might have
generation
unacclimated. ' But
even
credit
prosperous.
its
better
.
.
selves
less
31
ATLANTA, Ga.—E. E. Dill is
with Franklin Securities Co.,
now
Hedley Building.
vThe Commercial and Financial
Chronicle
By the very nature of our serv¬
Looks
All
time-to-time, and
these
of
standard
are
ap¬
to the proaches among distribution en¬
gineers. They have been reason¬
employees' homes so that they will
be
able to
locate major faults ably satisfactory for the loads ex¬
perienced in the past, but may be
quickly, which is the first step
during
service
an
this
believe
will
program
provide
effective safeguards
against the inevitable loss of serv¬
ice due to weather and other con¬
ditions beyond our control.
Engineering Our Systems
engineering our systems, the
record is one of which the indus¬
In
Still,
can
be justly proud.
much remains to be done
try
throe major areas
in all
of electric util¬
In
of electric genera¬
In the field
tion, which is the most dramatic
of the three, and accordingly has
received the most attention in the
the art has already
made spectacular advances. Gen¬
erating units now being built will
establish new records in the ef¬
public
eye,
ficient
time,
start
eral
a
vigorous
atomic power, with sev¬
on
of
making
are
we
the same
at
fuel;
of
use
Pennsylvania utilities
our
where
opinion, the area
my
are
Thus,
fail
administer
to
with
service
for
bilities
responsi¬
our
a
keen
tive
lic
the
holds
hurdles
Thursday, October 13, 1955
.
And
design
economy
and
to most of the
likely to encounter.
which
personalized service—or close
attention
element at every
tivities
point of our
services—is
and
the
to
lie ahead;
relations
human
the
to
plant
our
large load increases that
ac¬
to solve
manpower
sur¬
t^ engineer¬
profcms of the
ing and operating
future; and
est way
to win that understanding.
earn the good opinion of the
into
operations an increasing
our
efforts
awareness
of sound human rela¬
is between the substation and the
treatment,
reliable tionships, and the importance of
transformer, rather than between considerate
considerate personalized service in
the transformer and the customer. service, fair and reasonable rates,
building
the
strongest possible
It is in the former area that the and the day-to-day application of
concentrate
must
we
our
lies for the greatest
largest number of
and at the lowest cost
opportunity
benefit
the
to
customers,
in no position to
I certainly am
tem
how our own distribution sys¬
should be designed 25 years
and am much
less so
with respect to any other
system.
from
now,
considering the possibili¬
lie ahead, I am inclined
But
on
ties
that
broad
this
recommend
to
If
relations.
operation brings
cannot be excelled,
basis
This
of
that
results
customer.
per
bulwark of good
the fundamentals of sound human
and is the best guarantee of
As
take
we
a
look ahead at this
conference, I would urge that we
Continued
from
ap¬
page
future course
principles, we
our
these basic
expect
to
reason
every
these great
the
its
mind:
keep four precepts in
have
men
a
undertakings, and for
and
women
who comprise
(1)
That we study our
the
be
called
to supply
on
terms
5
World Affairs
on
—
—
.
.
_
of
at
power
moment's
a
in
fluctuation
no
notice
the
sumer's service.
As
look ahead to improving
we
service
our
reliability,
distribution
for
nearly
electric
in
design of
our
must be such
to minimize
of
abnormal
faced
also
The
plant.
distribution systems
as
ice interruptions
are
in¬
half of our total
vestment
other
most
our
problems are in the
field, which accounts
challenging
serv¬
due to storm
conditions.
the
with
or
We
question
adequate
supply capacity and
regulation,, as our resi¬
voltage
dential and small commercial
tomers
increase
their
cus¬
demands.
use of cable,
underground
overhead, is a partial solution
The
or
to both sets of
we
face
of
ad¬
costs
art.
the
in the present state
Somewhere
progress
clearly
problems. But here
the obstacle of great
ditional
in
our
define more
aerial distribution
must
we
where
Closely
con¬
technical
We
to
approaches
of
include
distribution
greater
tions to meet
use
of
local
unit
the
voltages,
substa¬
load increases
pending the
substations,
a
way
and
the
gradual transformation of radial
and loop systems into grid sys¬
tems.
also confuse capi¬
discourage
ments
or
invest¬
foreign
new
even
the continuation of
enterprises.
They
are
marks for socialism and do
appreciate how American pri¬
vate enterprise has increased the
standard of living of individuals.
Additional
hurdles
to
mutual
existing
all-too-frequent
not
educators to the
electric utility industry. The feel¬
ing seems to be widespread among understanding grow out of our
engineering institutions today that own concern about membership
the glamour has gone from our in the United Nations for Commu¬
industry, and that the opportuni¬ nist
China; our restrictions on
ties in it for young graduates are visits of Asians because of im¬
limited.
'
migration laws; our tariff and
many
after many years in
the industry, firmly believe that
just the opposite is true.
New
fields are opening up within the
industry constantly, and the op¬
I
for
one,
qualified
young men are virtually unlim¬
ited.
In my opinion, it is our job
to sell our industry to faculty ad¬
portunities for properly
visors
and
to
assure
the
undergraduates
Only by so doing can
the engi¬
ourselves of
neering, "knovy. how" that will be
so
essential to
.our
adventuresome
industry in the
and
challenging
days ahead.
custom
regulations; and they are
convinced
that
we
symphathize
more
with
Personalized
Service
the human
that
loom so
large in all that we do.
Finally,
relations
there
aspects
are
our
Western allies than
nationalism—although
have
we
self
with
Asian
traditionally
determination
-
favored
colonial
for
countries.
for
ure
of
other
us
to
Asian
hand,
it
is
not
overlook the fail¬
leaders
world struggle in
to
see
the
fair perspective.
They condone Communist (Soviet
and
Chinese) imperialism while
suspicious of Western countries.
Their "neutralism"—against us—
is hard to swallow. Their leaders
unable
tween
and
to
distinguish be¬
as
preached
as practiced.
communism
communism
Furthermore, in spite of official
statements to the contrary, Amer¬
from
imports
essential
their
of
the
West.
oped, its potentialities (in human
and natural
resources) are tre¬
mitted
to take
is bound
event,
any
until
our
growth
the
in
share
to
which
will
we
is
cause
place. In
keep trying
won.
S. Foreign Policy
Impact of U.
Because the United States is the
industrial nation, it fol¬
our
foreign economic
policies have tremendous impact
leading
that
lows
everywhere.
international
the
In
the
vexatious
most
versial
subject is
fact
field
trade
contro¬
and
The
tariff.
our
is
we
years
to
say
objective
completely
; or
completely
consistent.
We
an¬
high-sounding programs
and then all too frequently for¬
sake them to
portant
yield to small unim¬
groups.
pressure
:
,
The recent irritants in our trade
policy are Dutch cheese, Swiss
watches, the Buy American gen¬
erators and the latest ruling on
foreign bicycles.
I will be the first to admit
;
'
that
dairy farmers seem to require
special treatment in all communi¬
ties; and that no one can object
to the protection of skills really
vital of national .defense; or that
of
replacement
to
parts
compli¬
machinery
electrical
cated
can
serious problems. But I have
more
difficulty in understanding
pose
why the rate of duty on light
weight bicycles
(of which we
make very few) should be raised
from 7V2% to 11 ¥2%.
higher
the
Actually
will
rate
probably not keep out any bi¬
cycles—so it doesn't protect any
market.
then: "Why
manufacturers
what they apparently want
the
foreigners still sell us
You
get
and
ask
may
since
worry?"
our
their
bicycles.
My answer is that it is poor
psychology and poor foreign re¬
lations.
We spend several hun¬
dred million dollars overseas
each
off-shore procurement in
part, at least, to foster good re¬
years has aided Asia by making lations, and we lose much of the
available technical assistance and
good effect of this by actions
considerable capital equipment. I which can
only be described as
feel, after my latest visit to the petty, besides violating our pro¬
Far East, that we will be smart to fessed
principles.
stick to the program on a selec¬
The
whole
world
is
on
the
tive basis and even expand it in threshold of vastly increased in¬
some
recent
But to be fully effec¬
areas.
tive the Government will be wise,
its
addition -to
in
investment in
wel¬
where it is
countries
come.
"
,
efforts, to
own
private
encourage
those
on
year
in
States
United
The
;
;
dustrialization
and
—
our
own
is tre¬
mendous.
Therefore, we will be
wise to base our trade policies not
on
sectional or special interests
but on what is in the overall na-*
markets
exnort
in
stake
'
carrying out these ventures
we
have
to
proceed with
tact
and understanding; with firmness
without
arrogance;
and finally,
In
we
must
all
for
tience
the
On
easy
seem
installation of large
multi-circuit
the
overcome
apathy of
we
Other
in¬
Some Asians
talism with colonialism and hence
easy
somehow find
must
themselves.
the
the
dustry.
disappears and underground takes
raising
of these
into
personnel
its
place.
all
to
related
problems is the matter of assuring
a
continuous flow of competent
I have pointed out,
lying east
as
economically undevel¬
nounce
remains many
with
Although,
of India is
either
or
way
to fly from
by way of
policies. I think it is
that we have done
more than any nation to liberalize
foreign commerce.
Even so, we
seem
to have difficulty in being
in the program in one
in the Far East I will comment ican businessmen feel that their
another. And yet, there ing installed, and formulate basic
in
particularly on our relations with investments are not wanted
unsolved problems; principles of design that we would the non-communist countries of Asia. They experience many ob¬
adopt if we were building for
for example, metallurgical ques¬
Asia
16 in all
which range stacles to private enterprise and
those loads today.
tions, one of the most baffling in
from
Afghanistan
to
Indonesia justifiably fear expropriation and
dealing with new high-pressure,
(2) That we engage in further and North to the Philippines and competition from business sub¬
high-temperature units in con¬ extended research as an industry
Japan.
They occupy more than sidized by local governments.
ventional steam plants. .
Then group, in collaboration with man¬ five million
It would be silly to underesti¬
square miles, are in¬
there is the field of nuclear power ufacturers, looking towards:
the
seriousness
of
these
habited by 800 million people— mate
which has a galaxy of unsolved
Hav¬
almost a third of the wofrld's pop¬ mutual misunderstandings.
(a) Satisfactory and less cost¬
problems,
such
as
metallurgy,
ulation—with a combined income ing been ruled so long by others,
ly methods of cable con¬
handling of radioactive compo¬
of $70 to $80 billion dollars—one- Asians are determined to assert
struction;
A...
nents, and disposal of radioactive
twelfth of the world total.
Their their independence and equality
(b) Greater flexibility in in¬
by-products and waste, — all of
stalling, removing and re¬
major goal is more rapid eco¬ no matter how much it hurts.
which, I most humbly admit is far
They are overly sensitive and sus¬
nomic development.
using
various
items of
over my head.
distribution and consumer
Most
of
the
Asian
countries picious.
The art of transmission is also
But however great the difficul¬
service equipment.
only recently attained their sov¬
well advanced, with long records
ereignty. Accordingly, they lack ties, it is to the practical long(c) Design standards which
of successful experience at 220,000
Western
trained and experienced person¬ term advantage of the
will
increase
flexibility
and 287,000 volts, and a few more
nel both for industry and govern¬ World and of non-Communist Asia
in
changing distribution
recent lines at 330,000 volts.
But
ment; and they are short of capi- to solve them.
voltages as load condi¬
here too, much remains to be done.
I will not bore you with a lot
tal.
'
:
/'/.
■
tions warrant.
of statistics because it is common
Only five years ago, circuit break¬
When we consider that Penn¬
Causes of Our Difficulties in Asia knowledge
ers capable of interrupting 5 mil¬
that they supply us
sylvania utilities will spend sev¬
lion kilovolt-amperes of electrical
Our
difficulties in Asia arise with important raw materials —
eral hundred million dollars for
out of a number of things.
many of them strategic in char¬
energy were considered outstand¬
distribution
plant alone in the
ing. Today we have switch gear
Many Asians think the we are acter.
next two or three decades, such
And on the other side of the
v/hich
can
interrupt 25 million
too impulsive and fear that we
research seems a modest price to
kilovolt-amperes. But still larger
the
may precipitate a war and that ledger it can be noted that
pay to assure the maximum eco¬
units will be required to control
Asia will be involved.
They dis¬ exports
of the non-Communist
nomic return in conjunction with
to
the
West
the huge loads now in prospect.
provide
like our emphasis on armaments countries
the high service standards that are
To assure dependability of service
and military alliances and stub¬ them with more than 50% of their
our goal.
in
case
of
serious
foreign
exchange — with
outages, we
bornly refuse to recognize the total
-must be able to shift large blocks
danger of Communist aggression. which they buy the greater part
Technical Manpower
engaged
file
Manila
tectionist
Its Influence
within 25
have an
now
we
on
that our the past
have retreated con¬
siderably from our high duty po¬
sition, and our traditional pro¬
Our Economic Pattern and
years,—which is within the life
span of much equipment now be¬
a
serve
much of the great area
25
they may well
that
loads
of
individ¬
centers in
to
Bangkok which we hope will be
approved.
fair
distribution
request
our
However,
kyo.
plain
personnel.
proach:
ual
grant
will.
bright and rewarding future for
the industry, for the investors in
safe,
economic expansion.
and
sound
shape
we
around
to
temporary alternate route to To¬
mendous and TWA should be per¬
for building
need
the
Finally,
by deeds—not words.
As
we build for the
future, our cor¬
nerstones must be courteous and
public
trained
for
need
the
Third,
East
Far
prevented us from serving
our original
certificated route to
Shanghai and, I regret to say, our
Government has not yet seen fit
have
to
expand
we
meet the
the
in
troubles
litical
of
application
improve the Colombo to
flexibility
with
engineering in all phases
system
key
we are
need for imagina¬
the
Second,
appreciation of a very simple tru¬
ism—that an understanding pub¬
We
ahead.
to 25 years
15
say
distribution.
and
sion
of load
the kind
service
service—generation, transmis¬
ity
in preparing
growth and
requirements in prospect
inadequate
wholly
for
emergency.
We
trophes—in
recognition
of
the
growing dependence of the pub¬
lic upon these services;
by ordinary
we must never
big
companies
standards.
assignments are made close
restoring
utility
by the general public as
ness."
Even
the
smaller
Ahead to the Atomic Age
in
proving the dependability of our
service—even in times of catas¬
ices, we are and will be
The Electric Industry
conducted from
First, the need for steadily im¬
regarded
"big busU
12
Continued from page
'
.
.
(1544)
32
be
do
is
what
Americans,
made
of
lots
and
easier
for
hardest
exercise
it.
us
This
if
we
may
just
remember that it was many years
after
fore
own.
our
we
independence
began
amenities in
our
be¬
to
observe the
international re¬
lations.
TWA
Our
.Domestic Economic Policies
the Foreign Situation
And
of
pa¬
interest.
tional
The domestic
of
our
great
—
and indirectly
Kansas
interest in
the
economic development of the
Far
a
real
One cf
capitalist
mean
of
severe
to
survive
look
today
has
to destroy
a
another
suffered
democ¬
that the
in
prelude to
depression of the type we
Russians
TWA
as
It is just possible
America
1946
overseas
as
so
will
racy.
system—by which they
States—will fall
a major economic de¬
the United
pression
our
hopes
hierarchy is that the
been
Since
a
foreign
the pet beliefs or
of the Soviet
through three
European gateways, London, Paris
and Lisbon, from - which we fly
eastwards as far as Ceylon.
Po¬
East.
operating
have
situation.
because
City—has
economic policies
government also
influence on " the
25
at
as
years
Superficially,
conditions
a
ago.
there
are
many
Volume
182
Number 5472
.
.
.
The Commercial and Financial Chronicle
(1545)
factors of life
today that may remind us to the lush
twenties. The
steady rise of the stock
Since
have
market,
find
magic
add
country with
World
should
War II, and that the
number
of
years
World
I
I
am
here
selves
have
question
soundness of
few people
them-
are
not
The
asked
whole
because
I
think
the
is
—
watching
the
United
futtiFe^we
have
And
(1)
going
rea-
services
to
1929—the
is
the
in
off
the
natural
world-wide
better
are
that
the
we
in
the
Corporations and Banks Favor New
all
can
sistent
subscribe.
Their
—
the
mistakes
of* the
late
twenties
/
at-
perhaps
,.n
not
exist
humanitarian
nection
with
We
ago.
years
think
T
far
ing
down
be
Two With Schwabacher
that helps keep the
industry turning.
(3) The Government has at its
command important controls
which are useful in maintaining
SAN
include
the
regulation
of
Innthe
ending
Quarter
Williams
cantile
w?U Lve^invested'
increasing
affairs
and
...
of
King Merritt & Co
„
t
_
Inc
kets
some
time.
the
Howard, Weil
NEW ORLEANS, La.—John S.
harnessing of - atomic
and the development^ of, watters is now connected with
the science of electronics have al-
r*'
ready started
^owa
a
Industrial
second
—
which
just
are
the
to
are
informed
that
there
good
on
is
20
in
as
all
the
to
with heavier
this
new
of
Exchange.
times
as
With
coal,
NEW
pe-
source
of
Renyx, Field
our
of
cur
industries
pp
have
Earns
...
„
become
u
o
/-.
affiliated
productivity
peoples less
than
selves.
that
H.
Ballam,
Investment
Jr., Assistant
Officer
the
of
Fidelity Philadelphia Trust Com¬
pany.
Mr. Ballam's subject will
be
"Money—Something New Has
Been Added."
Chicago Analysts Field Trip
CHICAGO,
111.
ment
Analysts
cago will have
—
The
Invest¬
Society
of Chi¬
a field trip to the
South Chicago Works of Republic
Steel
Corporation on Oct. 20.
will leave from
Buses
in front of
C. M.
a.m.
White, President, and T. F. Patton, Assistant President will speak
at
a
management conference fol¬
lowing luncheon at the plant.
)
the
banks.
It is
to
be
used
in
mortgage fi¬
With
Fairman, Harris?
be
brought
a
CHICAGO,
has
become
Harris
man,
209
some
minor relief
powers
tendency to make
attitude
about
was
111.—Robert
South
bers
of
&
La
the
west Stock
Spicer
associated with Fair-
Company, Inc.,
Street, mem¬
Salle
New
York
and
Mid¬
Exchanges. Mr. Spicer
previously
with
Continental
Two With
mod¬
King Merritt
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.—Joel K.
Hamamoto and W.
L.
Jenkins
are
with
now
pany,
King Merritt & Com¬
Inc., 1151 South Broadway.
Leonard Schneider Adds
(Special to The Financial Chronicle)
LOS ANGELES, Calif.—Etienne
S. D'Artois and Barbara G. Reel
joined
the
Schneider,
staff
5909
of
Leonard
Melrose
Ave.
off.
ease
better
a
of
more
quotations
towards
through
Government
change in
strong as it ever has
given to the money mar¬
any
as
U. S.TREASURY
that be, supposedly for the purpose of
new money
for
inflationary
funds
is
as
raising operation.
pressures
sizeable
as
has
some
in certain
-
have not lessened, and
which means there
of
PUBLIC REVENUE
SECURITIES
Deposit institutions, which
anything in government securities
the middle
and
,
ever,
improved.
savings denosits
maturities.
These
reportedly stepping
of the most distant Treasury obligations.
are
same
up
com¬
banks
purchases
our-
Joins Chas. A. Day
(Special to The Financial Chronicle)
BOSTON, Mass.—Danforth Beal
mer,
C. P.
Wagner Opens
(Special to The Financial Chronicle)
DENVER,
„r
Colo.—C.
.
.
Atherton & Co., 50 Congress
Street.
formerly with F.
Moseley & Co.
With
was
Palmer, Pollacchi
(Special to The Financial Chronicle)
Philip
.
He
BOSTON, Mass.—Earl F. Bryan
BOSTON, Mass.—Carl D. Lawhas joined the staff of Chas.
ton
A. Day &
Court
Co., Inc., Washington at
Street, members of the Bos¬
ton Stock
15 BROAD
(Special to The Financial Chronicle)
Palmer, Pollacchi & Co., 84 State
Hale is
National
Street.
Co., 131 State Street.
Bank
Building.
with
& Co.
INCORPORATED
With B. C. Morton
has
affiliated
Aubrey G. Lanston
Exchange.
Wagner is engaging in a securities
business from offices in the U. S
become
BOSTON, Mass.—James D. Mcnow
>
(Special to Tiie Financial Chronicle)
Illinois National Bank & Trust Co.
made
has become connected with Schir¬
S.
can
substantially
to
the
and
well-being
of
fortunate
funds
T
W1*h Renyx, Field & Co., Inc.
and
—
living standards; but
contribute
evident
(Special to The Financial!Chronicle)
ORLEANS, La.—James P.
Amaro, Charles Dupuy and Willis
Technology will not only
multiply many times the effec¬
raise
rather
With Schirmer, Atherton
(Special to The Financial Chronicle)
power.
tiveness
Trust
au¬
materials and the knowledge
exploit
have
been
obligations
mitments
Stock
Samuel
not
except the shortest ones for a long time, have been making
Street, members of the New Or-
troleum and natural gas combined.
We
have, therefore, both the
raw
^ab uisse» F
richs & Company, 222 Carondelet
much energy in known sources of
uranium
and
thorium
in
this
country
ernment
of
realized.
thority
»
demand
be
proportions
beginning
to
recently by the
leans
Revolution
We
We
on
Tuesday, Oct. 18, 1955 at
in the board room of
Fidelity Philadelphia Trust
Company.
The speaker will be
yet reported any slowing
taking place in their mortgage
showed the mortgage increases to
year
have not been in the market for
,
»
educa¬
1955-56
p.m.,
is not likely to be any immediate change in the money tightening,
credit limiting policy of the monetary authorities, it is reported
that the demand for selected intermediate and longer term Gov¬
(Special to,The Financial Chronicle)
>
the
•STATE, MUNICIPAL
1(6)- The
energy
when
Even though the
With
.
\yill continue for
that
not
sure
its first
of
Deposit Banks Acquiring Long Treasuries
.
barriers; and that for¬
aid—on a selective basis—
is
it
have
Operations Remain Heavy
aiding the Treasury in its
and jn
meeting
the
The fact that the market for Treasury issues has been
appears
To be
.
.
vestment Women's Club of Phila¬
B.
with prankiin Wulff
was
T
Phila. Inv. Women
PHILADELPHIA, Pa.—The In¬
have
been.
2200 Sixteenth Street,
Lynne has recently been with
the
nation
obtained in part through the sale of corporate, Gov¬
municipal securities according to reports.
those
has
in
partner
the Midland Hotel at 9
monetary policy as the pressure is about
Harrison,
otherwuntaa.^
t
p
y
concerned.
Additional
commitments
securities
trade
eign
of
R.
Rosenbloom, Treasurer. Mr. Elias¬
berg was formerly a
Dammes & Koerner.
in
What
kecome associated with Richard A.
power .m
A.
traders and dealers have shown
SACRAMENTO, Calif.—Roy A.
Lynne and Raym0nd Parker have
Mr
their needs
three largest ever registered by these
that deposit gains of
(Special to The Financial Chronicle)
Regardless of: theipo-
Washington L .expect
that there will*" be further easing
in
and
David
Vice-Presidents;
Samuel
Genel, Secretary; Charles J.
rallying ability, at times, appears to indi¬
cate that the technical position of these securities has been im¬
proved. Also, the set-backs have not been quite as sharp or as
severe as they have been in the past, because it seems as
though
est
generally that they have a
stake in the improvement of th
of
the
money.
obligations.
Two With R. A. Harrison
an
above $100,000,
Fishman,
Lasky,
Uchill,
able to display greater
Manager for Hess Investment Co.
cans
economies
Building, members of the
]ia"afs formerly Municipal
appreciation by Amen-
money
exchanges for tax purposes
have already sold out the issues which they bought as replace¬
ments, because of the recent strength, in prices of Government
over
international
in
most
t.'ese; institutions for the
August fell far short of meeting the requirements for
was
Some
Mer_
in
demand for
operations, according to advices, have not slowed to any
spite of the reportedly large number of institutions
which have been making" thees exchanges.
It is evident that
earnings of most institutions are going to be good enough in 1955,
so that tax losses will not be
exactly unwelcome.
associated
c
G.
Tax
Midwest Stock Exchange. Mr. Wil-
equipment at an
$29 billion;
and
in the fourth
quarter such
outlays will be even greater.
(5) There is a growing interest
of
rate
become
Houston
Lawrence
the largest buyers of the 21/4%
mortgage money,
Tax Loss
h.
30
industry
new
plants and
annual
has
of
member of the
Seymour
was
(special to the financial chronicle)
in
Sept
of
nancing
Joins W. G. Houston
w>
upturn
an
of the
ernment
Ex-
Mass. —Gordon
ideas
T
extent
qxjinCY,
Eliasberg,
Exchange,
expansion which is
indicated
*00 Montgomery
changes,
efioawi0r]n LrlagpH
in
increased
and
Tr,rnl,
a£d San Francisco Stock
credit,
reflected
are
Dyer and Har Id .
n0.^n ^*/r +?C W3~
nnet
the
32%
were
are
August of this
Street mendpers 9^ the New York
public works and farm price supports.
(4) Large expenditures are being made by American corpora-
employment
C.
_
„
the rate of taxes, expenditures for
which
the
mortgage
-
~rar,
?^c?
J?fchcir ^
steady course. These
a
of
month
Calif.
^
Geoige
.
on
FRANCISCO,
~
Harold
.
for
banks of
one
also
(Special to The Financial Chronicle)
power
business
demand
savings
resent
wheels of
The sizeable
with
Allotments of
these institutions
as
portfolios.
double aspect because they rep¬
a
continuance of purchas¬
a
l7/8%.
line
as finally
by the Treasury, were very close to earlier estimates
being heard in the financial district.
were
the
Co.
retirement plans and layoff payments. Actually they have
in
Despite reports to the effect that the various measures taken
by the Government agencies have tended to slow down somewhat
of
surance,
was
moderately higher than
previous issues put out in July,
and
Savings Banks Continue Heavy Mortgage Business
are
primarily
specialists.
2%
was
recent
cases
have dwindled to
rather insignificant
proportions.
Also, payment for these subscriptions is to be made through the
tax and loan account, which is not an unfavorable
development as
the New York and San Francisco
Stock Exchanges. Mr. Scannell
objectives in con- was formerly with E. F. Hutton
unemployment inCompany and Harris, Upham &
25
to
notes
the
on
some
,
inclined
the
will
series
Notes
nicely. Commercial banks were likewise attracted to the new
issue, because it can be used not only for tax purposes, but also
to improve the short-term holdings of these institutions which in
something new was tried,,
Joins Hooker & Fay
the granting of foreign
;(Speclal l0 The Pin,ncu1 0HBONlax)
scale great enough,to reverse
the
downward
plunge of
?, ? u
many foreign economies.
s9pk
^.canrlj !*as k®c0™e as^°7
V(2)
Today there are built-in, ciated with Hooker & Fay, 221
buffers against adversity that did Montgomery Street
members of
^
tax
used
notes
the two
on
were
Corporations reportedly
.
*T
anticipation
used
Treasury
firm,
membership on
New York
Stock Exchange,
be Henry Montor, President;
5:20
the
of the
hold
will
delphia will hold
very
a
*
tax
which
tax notes because this kind of near-term
paper meets
namely,
on
2V4%
coupons
2V4%
that
of
was
confirmed
con-
—when
aid
the
market
courageous—policies by our Govto
the beneficial impact of the ernment
but,, the understanding
Marshall Plan.
The stage was all and
cooperation of its citizens,
set
in
1948
for
a
repetition of which means every one of us.
the
of
that which
when
far-sighted
and
rate
offering
and
tainment requires not only
today
than they were before World War
II.
This is due in large measure
an
Officers
City.
which
upper
The
best
human
offices at 32 East 57th Street, New
York
tional
advance
principles to which
are
is
recently established trading range considered to be
encouraging indication,
resources,
These
market
between
to
result
world's
short-term
limits of
They believe, too,
will
this
of
use
beginning in
was
sys-
believe
way
De¬
operating under competition from
the recently offered
eight months 2*4% tax anticipation notes as
well as the Federal Home Loan Bank
financing. On the other
hand, the intermediate and longer term Governments have been
acting quite well, with the ability to move ahead to the
business-
capital
the
ing standards.
that
of
The
or-
economic progress and higher liv-
comparable
major countries
World
and
countries
money.
pressure.
enterprise and the freest
possible circulation of men, goods,
my reasons.
Instead
of
these
private
1929.
now
recession which
Free
not
are
depression
any
that of
members
new
for loanable funds is as
heavy as ever, and for the seventh
time this year bankers'
acceptance rates were raised. Even though
the pressure is still on the
money market, and there are no indi¬
cations yet of any
let-up, tne attitude towards the Government
bond market appears to be a bit
more constructive.
Certainly up
to now there has
been none of the defeatist attitude which was
so
prevalent in 1953 when the
money market was also under
than 50 countries
more
Its
tern.
First I will state my
conclusion,
which is that within the foresee-
<
from
men
of
up
sociates, Inc. will be formed with
mand
am
ganization made
States economy—it is worth while
briefly to analyze our situation.
to
to
world—including the Rus- following the free enterprise
sians
able
Chamber
dedicated
As of Oct. 13, Henry Montor As¬
CHIPPENDALE, JR.
ticipation notes which the
Treasury offered for
*
for the next two years,
The Chamber is a private
> There isn't time to go into much
but
is
Henry Monfor Assoc. NYSE Firm Forming
Governments
on
Money market conditions show no significant
changes, in spite
of the favorable reception which was
given to the 2 V4% tax an¬
happy to have the opportunity to serve as President
whether
we
may
not
be
headed for another severe decline
in business activity.
detail
I
son
and
Reporter
By JOHN T.
the adprinci-
objectives and for that
same
current economy
our
*
International
Commerce
two about the
or
Our
not
we are the only
duty to work for
a
*
there
sure
a
1929
War I.
who
does
pies and the expansion of international trade. This, of course, is
the job of all free nations and
their citizens,
same
separated
That
the preservation of peace,
vancement of democratic
by 1956, 11 years will
elapsed since the end of
have
and
numbers
I
that I think
mean
that
in
Americans
a
responsibilities.
obvious
parallels
between
and then.. And for those who
now
all
are
good
deal
about
American problems and American
the high level ef business
activity
and the general
spirit of optimism
are
we
said
with B. C. Morton &
ST., NEW YORK 5
WHitehall 3-1200
231 So. La Salle St.
45 Milk
St."
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
*
*
The Commercial and
&4
Island
Rhode
.
.
Thursday, October 13, 1955
.
Investing for a
|
Relatively High Income
I
through
mutual fund, the
provide
an
diversified group
of bonds, preferred and common
stocks selected because of their
a
relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved.
Prospectus
information
from your
be
may
and other
obtained
investment dealer or:
Securities &
National
effect
of
passage
legislation
shares
of investment
shares
Prudent
the
their
WELLINGTON
^•FGND
the list of securities eligible for
fiduciaries. When the predecessor group,
Committee, was organized in 1950, a large
Man
purchase. In 1953 the N.A.I.C., through its Investment Legis¬
Committee, assumed direct responsibility of the desired
of progress to date is amply documented
The record
wit:
Kentucky amended its statute to include specific
investment company
shares,
In
1955, Arkansas
to
shares, and Michigan amended its Prudent Man statute to include
them by definition.
Wyoming/ by statute, has added investment
company securities to its legal list for trust investments, and South
Dakota, which had no legislation formerly, has enacted a Prudent
Man rule. West Virginia enacted a partial Prudent Man bill with
specific reference to investment company shares; however, be¬
of apparently inconsistent provisions in the bill, a clarifying
in
the state's Attorney General.
District of
the
Columbia, New York, and
other
jurisdictions—unsuccessful so far—will be continued. The com¬
plete list of states and where they stand on investments by fidu¬
ciaries, in the absence of specific provision in the governing in¬
in
recorded
funds
investment
tual
"Legal Investments for Trustees or Fiduciaries
Securities
and
Corporation, sponsors
of the fund.
man¬
period established last
LAWS"
more
of
South
Carolina*
Dakota
B
shares
following
Eisenhower's
Oregon
Pennsylvania*
on
the
President
heart
attack
ran
Island
Figures
the
the
for
Sept. 26, the day
break, also show that
big
four
Established 1925'
Kansas*
New York****
Utah
Kentucky*
North
Carolina
Vermont
only $23,120, nearly
all of it odd lot evening up.
Axe-Houghton Fund B subscrip¬
Maine*
North
Dakota*
Washington*
tions
Maryland
Ohio*
West
and redemptions to $5,715. For the
three days, Sept. 26-28, total sub¬
Virginia*
these states makes specific
securities.
**
Massachusetts, by an opinion of the probate judges, permits
fiduciaries, within the provisions of the rule, to invest in
large a'>
INCOME
inable
*»»*«»»*
Uk
of
pr'nc'Pa'l
while
scriptions
Oklahoma, by decision of the State Supreme Court, permits
the provisions of the rule, to invest
in investment company securities.
New York permits fiduciaries to buy only listed common
within
stocks.
each
fund
is
available
from
investment
your
dealer.
The Parker Corporation
200
"SEVEN LEGAL
& PARTIAL LIST JURISDICTIONS"
turned
in
the
Fund
only
fund's
$33,662
were
Virginia
are
Indiana
can
"Nebraska, Wisconsin and Wyoming permit purchases of in¬
vestment company securities by fiduciaries subject to the limita¬
of the statutes.
not
for
its
as
four
all
pertinent legis¬
addition, within various limitations, New Hampshire and
INVESTMENT
A balanced mutual fund
over
300
COMPANY
investing in
bonds, preferred and
stocks selected to
common
investor's
the
possibility
long-term growth of principaL
cant
After
portfolio
are
an
effective
to
companies
in
carrying
and
related
35%
a
mutual
investment in
mon
investment
a
fund
STOCK
offering
diversified list of
com¬
A mutual fund
Science. & Nuclear Fund began
last May with assets of
business
$118,000 in cash, and closed Sep¬
tember with assets of $712,000.
INVESTMENT
and
a
POLICY—"Policy
Management"
is the title
stocks selected for their investment
common
quality and income possibilities.
Send for a free copy of the booklet-pros¬
pectus by mailing this advertisement to
pamphlet just
Science & Nuclear
clear
Fund.
The
Fund's
pamphlet
deals
approach
to
the
with
CALVIN
stocks of well-established
investing in those' companies
actively engagedl in the develop-
Business Shares
long-term growth of income and principaL
A Balanced Investment Fund
The
BULLOCK
Established 1894
anced
ion aged
and Dlstributsd by NORTH AMERICAN SECURITIES
Russ
ONE WALL STREET. NEW YORK 5
Bulging
•
COMPANY
Prospectuses available from Investment Dealers
Kame_
Prospectus
the above
portfolio bal¬
preferred stocks
supervises
bonds
for
a
and
and
common
stocks
upon request
since 1925"
Lord, Arbutt & Co.
Wholesale
Address.
or
between
stability,
selected for growth.
San Francisco 4, California
"Investment Company Managers
Company
selected
Representatives: Boston'Chicago • Dallas • Los Angeles-New York'Washington, D.C.
New York
—
Chicago
—
the
problem
of
American
companies selected for the possibility of
of
three-color
new
published by
Distributors, Inc., sponsors of the
recently organized Science & Nu¬
those
FUND
in
fields.
in
investing in diversified
on
scientific
CnrnmieM,
is
Mr.
changes the Fund
with 60% of
activities
companies
plunging market
answer
what
invested
in
nuclear
time the insignifi¬
sales by the funds
a
these
95%
assets
same
in the midst of
for
reasons."
mutual investment
companies and
their future.
"At the
portfolio
bonds
eliminated
were
Hedberg called "technical market
They
faith
Gunnar Mines
warrants
from
to
average
Business
with
$124,382,807 at the
end of September.
Commenting on these results,
Emerson
W.
Axe, President of
E. W. Axe & Co.,
Inc.," said that
the margin of subscriptions over
redemptions clearly demonstrates
the
in¬
Ltd.,
Corning Glass,
Machines,
Corp.,
and Zenith.
Fund
stock
Aluminium
in
Beryllium
dropped to $122,196,739 at the
of
business
Monday
and
back
the
common
International
_
provide reasonable current
income with conservation and the
of
attack.
its
vestments
close
were
(WanuiieoM,
increased
Friday, Sept. 23, the day be¬
President's
in¬
stocks of Bur¬
During
$127,519,874 at the close of busi¬
had
"In
'
was
the
common
Vice-President.
the month
berg,
were
fore
FUND'S
September
(1954) Ltd., and duPont of Can¬
shares
funds
in
ada, according to Robert D. Hed-
Corp.,
ness
no
a
while
roughs Corp., Canadian Industries
re¬
The figures also show that total
of
said,
with
$334,032,
NUCLEAR
&
cluded the
largely traded on the Ameri¬
Stock Exchange.
assets
cf
he
sold
were
value
investments
period,
Electronics
complete
28,"
and
27
SCIENCE
Houghton mutual fund family, the
&
Delaware Fund
chase."
B and
Science
com¬
24 shares valued at $2,395
presented to us for repur¬
only
were
shares
three-day
same
as
$19,378
Axe-Houghton Stock
Fund
totaled
$373,168
against
$194,694 in redemptions. Figures
Louisiana
tions
quarter just
$4,531,109
shares
dollar
subscriptions for shares of AxeHoughton Fund A, Axe-Hougnton
Georgia
lation.
Boston, Mass.
the
for
to
26,
"28.736
demption.
Axe
Iowa
"Arizona, Mississippi and Montana have
Berkeley Street
came
for the fourth member of the Axe-
Alabama
.
,
the
in
totaled
Sept.
portfolio
$268,837 while shareholders
were
In
securities.
from
to
the 26th
on
District of Columbia
on
prospectus
sales
amounted
reference to investment company
****
curity
—
r«Q^XH of
f«"d. w,l0Se
objeclWe is to re-
sales
sales of
over
corresponding
sales continued at high levels. On
actually made se¬
purchases totaling $95,390
Texas
ual
171%
ty in the market
funds
Mexico*
fiduciaries,
of
/"It is especially interesting to
note," Mr. Nelson pointed out,
"that during the recent uncertain¬
than 3 to 1 ahead of redemp¬
Jersey*
***
months
nine
pared with $1,316,148 in tie third
quarter of 1954—a gain of 244%.
Fund
New
Vand
first
increase of
Gross
Illinois
m
the
Houghton
Rhode
investment company
9.14% of sales
liquidations of
or
less than
$3,590,046 in the
period last year.
Idaho
irporated
described
ended
Missouri
The Prudent Man Rule statute in
$112,190,
'For
impressive, record
noted by the four funds man¬
Investors
A
only
equally
Michigan
*
executive
fund
1955, gross sales were $9,724,168—
Tennessee*
GUUw
sales of $416,758 in the
"unusually low"—amounted to
as
year.
South
longierm
over
mutual
an
<An
Minnesota
'.
in
$230,825 in September, a year ago.
$43,074,329, or 7.2% more than
previous record for this same
Hampshire*
possiW
sales
gross
the fund's 17-year history and up
the
New
for
said
and 51%
Nevada
d
records,
months this year set a new record
New
.
of
quarter
previous
Nelson, President, re¬
Nelson
Mr.
Sales for the first nine
Hare said.
Delaware
P0f
all
194%
Florida
getecte
Linton
ported.
tions.
'
broke
1955
W.
third
corresponding month of 1954. Last
month's redemptions—which
the
to 1, a factor
which contributed greatly to the
large monthly sales figures, Mr.
approximately 2%
Connecticut
T,«al
Fund
Delaware
of
the
September, 1955, totaled $1,226,361
—largest for any September in
During the period of "shakeout"
Sept. 26 and 27, National's sales
repurchases by
Colorado*
Incorporated
and
of shares exceeded
California
N
months
on
Oklahoma***
Massachusetts**
Arkansas*
sales
shares in September, the first nine
Research
&
agers
Monday
"36 STATES WITH PRUDENT MAN
3, PA,
sharp break
a
reported that subscription for Axe-
"(48 States and District of Columbia)
investment dealer
fund selling.
on
there is
security prices," he said.
Gross
September sales in his¬
tory at $4,576,995, a rise of 37%
over September sales a year ago,
according to figures released by
E. Wain Hare, Vice-President of
the largest
aged by E. W. Axe & Co., which
Prospectus from
the blame
whenever
Securities Series of mu¬
National
was
strument, is as follows:
FOUNDED
PHILADELPHIA
who put
one
at
cause
"Efforts
or
Despite Market Break
of the severest mar¬
ket reactions following news
of
President Eisenhower's illness, the
Despite
specific mention of such
Man Rule with
the Prudent
ruling will be requested from
your
Fund Sales Rise
National
"In late 1954,
adopted
mmr
on
include
to
States
various
the
majority of the States rigidly restricted "legal" investments to lists
which either did not include common stocks or severely restricted
New York
mwr
in
investment by trustees or
reference
i
'partial' legal list requirements, etc."
Investment
in the N.A.I.C. report, to
New York 5,
Broadway,
chalked up by the
Legislation Committee under the Chairmanship of
Robert L. Osgood. The objective of this group, of course, is to
6, N. Y., is the record of achievement
New York
objective.
Established 1930
120
By ROBERT R. RICH
lation
Corporation
Research
The laws of the States vary in their
substantially accurate.
language and in their application to different types of fiduciaries
instituticnal investors. Some have 'limited' prudent man rules
or
or
primary ob¬
jective of which is to
investment in
be
Among the highlights of the recent report to its members by
the National Association of Investment Companies, 61 Broadway,
Series
a
shares
investment company
of
,
Mutual Funds
I
National Dividend
purchases
permit
banks, and New Hampshire permits purchases by
trustees of public funds.
"The above informatibn is not guaranteed, but is believed to
savings
by
[~
I
Financial Chronicle
(1546)
-
Atlanta
—
Los Angeles
Volume
182
Number
5472
...
77?e Commercial and Financial Chronicle
35
(1547)
ment of nuclear and other related
sciences.
Two
investment
the
field
distinct
of
areas
opportunities exist
of
in
nuclear
science, ac¬
cording to the pamphlet, which
describes both briefly.
Copies
.
Science
Inc.,
be
may
&
obtained
Nuclear
1500
Walnut
Distributors,
Street, Phila¬
Group Securities
Sales
Up 33.5%
Group
Securities,
Inc.
Herbert R. Anderson, President of
the $100,000,000 mutual fund. This
increase of 33.;> %
#
1954
over
figures
for
the
same
period.
to
outstanding rose 28.3%
12,641,072 since Sept. 30, 1954,
and
total
shareholders
increased
20.1% to 35,050.
Corporation
Appointment
of
R.
$48.47
share at the end of the previ¬
quarter.
Blyth & Co., Inc.; C. J. Devine &
Co.; Manufacturers Trust Com¬
listed
per
ous
Street
Corporations, and
Fund, Inc., was an¬
Whitehall
Oct.
nounced
11
Francis
by
F.
share
per
last
and
year
and realized
ceeds
from
securities
stocks
mon
asset value
cash
to
and
net
on
Sept.
or
On Sept. 14, a
in the policy of
dends
change
quarterly
when
of
Directors
share
the
declared
22V2C
companies.
companies have
about
per
The
for
the
of
each
provide
investment
in
company
States.
companies,
The
all
other
mutual
the
three
funds,
make the group one of the larger
and more diversified in the coun¬
try.
Mr.
Casey
will
three
Service
Corporation,
to
furnish
jointly
op¬
investment
re¬
at
a
the lowest in the
industry, and of Union Securities
among
Corporation,
Tri
wholly-owned
-
Continental's
securities
under¬
writing and
distributing subsidi¬
A Boston newspaperman and
magazine writer for more than
ary.
20
years,
Mr. Casey
connected
in
recently
management ca¬
a
was
pacity with S. Richard Stern As¬
&
of
surance
Two With Cantor Fitzgerald
Company;
Calif.—Stuart
Accident
25,000
American
3,225
Company
shares
were
Limited;
Stores
BOULDER, Colo.
Layland
B. I.
F
Gas
J.
Com¬
River
5,000
Fine
Mark
and
W.
Kosterman
French
000
Life
in
the
Smith,
shares
have
joined
Fitzgerald
the
&
staff
Co.,
Canon Drive.
of
Cantor,
Inc., 232 North
Mr. Kosterman
was
previously with J. A. Hogle & Co.
in
the
Paul
—
joined
Walter
the
Corporation,
shares
shares
R
Ohio
t
son
of
Oil
tone flint!
ofC anada7Lto.
The
CM-
leaving 10.000
portfolio, and 4,000
in
shares
American
Limited,
the
leaving
the nortfolio.
portfolio
fully managed Canadian
Investment Company seeking
long-term
Metal
18.000
Companv,
shares
in
10,500 shares
com¬
Corporation; 6,300 shares Admiral
Corporation.
TAX BENEFITS
Joins York Staff
-
under Canadian Laws
has
become
Emory
Reece,
SAN
Company
York
50 Congress Street, Boston 9, Mass.
Please send
me
prospectus
describing
FRANQISCO. Calif.—John
is nbw affiliated with
Smith
& Co..
members
Stock
235
of
Montgomery St.,
the
San
*
Francisco
D 137
Name
__
With
...»
O.
v^.
Morton
(Special to The Financial Chronicle)
Address....
SAN
State
ney
Co.
i3
JOSE, Calif.—John P. Carwith B. C. MortCn &
now
a
free list of
the
10
for
provided
space
stimulate
card, or
a
These reprints
qualified
leads
for
newspaper
advertisement,
An Investor's
—
sound, growing Canadian companies
stocks have paid
common
tively for 5 to 127
cash dividends
request—no
consecu¬
A free booklet, "Canada's Indus¬
years.
trial, Mineral and Financial Growthwill
obligation, of
BLANK
&
CO.
mail coupon below
or
free
your
be sent you on
course.
copy
Blank & Co-'
/
Main Street, Anytown.
Without cost
PamPhlet
Financial
.
r-y
s
obligation please mail
or
entitled
Growth"
"Canada's
Industrial,
containing data
,
,.
.
,
a
me
copy
listed
on
of
Mineral
stocks
^
.
_
consecutive cash dividends from 5 to 127
years.
af-
Name
.
,,
"
The
become
associated
with
Conneli, Inc., First NaBuilding. Mr. Johnformerly with Brereton,
Bank
was
'
reason I am writing about this article which is available
*n reprint form is two-fold.
Canadian
investments
«Fhe second is that
.
,
„
is
ment literature that
is
ver
,
T
1
connected
Securities,
,
.
profitable
K
.
,
and
educational.
If
will
will
that it
measures
Inc.,
711
r
on
up
17th
Think this out.
of prospects that
Put
t
j
n
salesman
qualified salesman
a
going to make money
can
-waste
to
work
on
a
list
buy, and who have the willingness to listen,
can
it be with him. But
«•'
Management
both counts.
Keep the Leads Coming
,
Den-
and you are
1
,,
consideration.
most
can do " to offer high grade mvest-
informative
~
'
-*-v
with
F I 17 A/I
r
.
of the
you
agree
Street.
W#f!v
Wltn
.
,
thorough
one
re-read this Sept. 29th article in the "Chronicle" I think
you
^
become
bears
that
,.
(Special to The Financial Chronicle)
has
that
feel certain
I
.
..
First, I believe that the subject of
one
types of advertlsinS arW firm
even
on
that salesman's work and
so
the best and most conscientious
time and energy
calling
on
people who don't
-
n
Quaintance
is
now
Management
withal
Corporation,
F
444
Sherman Street.
W*k
With
I-l
Mf
Hamilton
A/I
>
Managem t
DENVER, Colo. — Richard R.
Payne is now with Hamilton Management
advertising that brings in leads gives
and proper reason
!!^™0JHE^I?NCIAL CHROf"CLE)
_
kave the money, are not interested in securities, or who cannot
be interviewed at a favorable time and place. Money spent on
Corporation,
445
to make
better to have
a
Arlrls
DENVER, Colo. - Edwin A.
King is now with Mountain States
your
salesmen
a
dignified
I don't believe in cold canvass,
This type of advertising will help
your
salesmen meet qualified
,
;P
p
'
Grant
(Special to The Financial Chronicle)
call.
some firms say it works out—it is much
"bridge over" or contact point with your prospects.
Don't Forget
Good salesmen follow
Mfr
a
although some men and
leads—by telephone, by letter, by per-
sonal call. They don't waste their firm's
to grow
cold.
money by allowing leads
Every lead should be followed within the week it is
.
recelved at ™E LATEST"
~~~~
Securities Co., Denver Club Build¬
Joins Hannold Staff
Keystone Fund of Canada, Ltd.
-
City
Send for
whose
ing.
Exchange.
number
a
Opportunity!
3750
(Special to The Financial Chronicle)
C.
The Keystone
into
Suggested Advertisement
return
Growing Canada
Street.
CAPITAL GROWTH
and certain
imprinted in
,.
Eliminated from the
were
double
DENVER, Colo.—John D. Marks
stock of American Cyanamid
mon
is
effectively to
very
6 P
the
shares
shares
a
Colo
Joins Denver Sees.
Cor¬
Company and 10 ooo shares Philco
A
the
in
fit
to
along this line might be productive of interested inquiries.
copy
and
Corporation,
oeo
iYey
10 090
used
y0ur
Rice & Co.
portfolio;
6,000 shares of Chas. Pfizer & Co.,
Inc.. leaving J.9.000 shares in the
portfolio;
be
A
A AA
eece Adds
Watson
with
has
tional
&
leaving
21,300
portfolio;
8,000
Company, leav¬
the
in
ing 4.000 shares
—♦—
Petroleum
is being made available
payers,
sales organization.
Using
J.
staff
DENVER, Colo.—Ted M. Johnson
portfolio: 6,700 shares Barber
Oil
below
for
Robert K.
poration. leaving 144.000 shares in
the
could
your
(Special to The Financial chhonicle)
portfolio; 4.000
Amerada
The article, together with
Now With Robert Conneli
portfolio;
Kline
been
Address
Laboratories, leaving 23.-
shares
line
G.
•
A.
the
300
Machinery
and
Corporation, •• leaving
shares
has
mory
filiated
Company; 3,500 shares
& Bloedel, Ltd. "B."
the sales were 10,000
shares
have
entitled "Canada's Indus¬
was
pamphlet form
North Nevada Avenue.
shares
General
Canadian
of
the number of years consecutive divi¬
as
Telephone
COLORADO SPRINGS
Food
25,000
in
name
Barnes, 2007 13th Street.
shares
Powell
in¬
This
Dividends, yields, and recent market
dividend
in
number
dividends
cash
the
to
Sept. 29.
this purpose when 100 copies or more are ordered.
;
of McMillan
Chemical
A.
large
of
envelope at the following prices: 1 to 199 copies at 15c each; 200
or more
copies at 12c each. "Compliments of" and the dealer's
Incorporated; First
Corporation; Laur¬
In¬
Limited;
Connecticut
Insurance
consecutive
Joins B. I. Barnes
6,230 shares
Natural
shares
Dominion
Incorporated;
Co.
"Chronicle"
The Article
(Special to The Financial Chronicle)
Chief increases
of
of
M. Marks & Co.
Consolidated Gold Fields of South
pany;
list
apparent to many,
so
(Special to The Financial Chronicle)
Africa, Limited.
9,700
(Special to The Financial Chronicle)
and
Co.
Michigan
ence
Company; 13,500 shares Capital
Airlines, Inc.; 10,000 shares Hud¬
son's Bay Company; 2,500 shares
Among
ANGELES,
ton
Becker &
additions to the portfolio
10,000 shares The Coca Cola
Life
the
Incorporated; Rey¬
Schoellkopf, Hutton
Co.;
the
consecutive
well
as
by the "Chronicle"
Loeb, Rhoades & Co.; W. H. Mor¬
stockhold¬
distribution of such net cap¬
ital gains as may have been real¬
ized during the fiscal year.
shares
LOS
&
in
showing the
which
given
were
Not
fitting that attention is called
tables
on
Canada.
trial, Mineral and Financial Growth."
Co.; Carl M.
evenly-spaced dis¬
ous
sociates.
/
will
year
Company
nolds
final
National
the investment companies
to
is
were
search and administrative services
cost
fiscal
is
in
for the degree of their popularity.
published
dends have been paid.
& Pomeroy, Inc.;
Adams, McEntee
& Co., Inc.: Bache &
ordinary dividend
accompanied by the simultane¬
as
public relations director of Union
erated
the
a more
The
ers.
&
New
also
serve
of
C.
Allyn and Company Incor¬
porated; F. S. Moseley & Co.; B.
J. Van Ingen
& Co. Inc.; L. F.
Rothschild & Co.; Geo. B. Gibbons
divi¬
first
tribution of income to
United
quarters
A.
dividend
22V2c
the
of
included
stocks
price
Corporation; White, Weld & Co.;
heretofore.
$400,000,000. TriContinental, with $263,000,000, is
the largest diversified closed-end
Company, Buffalo;
Trust
Company,
St.
Mercantile
against 15c
payment
dend
a
as
Trust
article
Louis: Stone & Webster Securities
Board
distributed
share
per
The investment
assets of
30,
made
was
distributing divi¬
of
investment
the
Traders
1955.
and
of
Taylor & Co.; Manufacturers and
abound
reasons
paid from five to 127 years.
Co.; Equitable Securi¬
Corporation; Estabrook & Co.;
Hemphill, Noyes & Co.; Kean,
30,
June
on
&
ties
or
article
Savings
Philadelphia National Bank; Bear,
the
Accordingly, it
Trust
W.
Stearns
receiv¬
$16,784,575,
assets
and
Pressprich & Co.; Salomon
Bros. & Hutzler; Barr Brothers &
Co.; Blair & Co. Incorporated; The
three
$18,218,056,
assets
against
as
of
R.
of
U. S. Government
net
net
91%
offering
York; Harris
Bank; The
Company; Hallgarten & Co.; Kidder, Peabody &
Co.; Ladenburg, Thalmann & Co.;
Trust
Northern
Com¬
90.1%
the
of
pany; The Marine Trust Company
of
Western
New
the end of this
at
against
as
obligations,
1955,
sold.
constituted
members
Bank;
the pro¬
as
103 y2%.
Other
the
cost of $4,262,975
a
$5,586,063
Randolph, Chairman of the Board
President
at
During the three months period,
the Corporation purchased securi¬
ties, other than U. S. Government
7.5%
Broad
are
time
relations
tional Investors
however,
same
of
Tri-Continental,
Investing and Na¬
portunities which
formative
8.3%
of
receding prices
the part of American investors in the
splendid investment op¬
on
group include: Kuhn, Loeb & Co.;
Chemical Corn Exchange
$39.94
amounted
Steve
in
redemption af¬
Strong Case for Canadian Securities
known, of course, is the continuing growing appreciation
of
ables
former
and are subject to
ter Oct. 1, 1963 at
A
Well
value
Hannagan
account executive and Carl Byoir
associate, as director of public
Casey,
Thruway
maturing Jan.
1, 1985 to July 1, 1995. The bonds
are
priced to yield from 2.35%
to
2.50%, according to maturity,
from
months earlier.
Eugene
By JOHN DUTTON
State
Guaranteed
bonds (third issue)
the Interim Report to Stockholders.
This
compares
with a net asset
period,
PROGRESS
reported
Committee,
offering $50,000,000
Thruway Author¬
ity
Sept.
on
are
New York State
30, the end
of tne first fiscal quarter of 1955,
was
$219,059,386, equal to $47.35
per share of capital stock, Robert
net
PERSONAL
The Chase Manhattan Bank
and
associates
value of The Lehman
obligations, at
Shares
•
Net asset
ecutive
through
an
Thruway Bonds Offered Securities Salesman's Corner
hy Lehman
.Lehman, President, and Monroe
Gutman, Chairman of the Ex¬
of
represents
Cited
C.
reports
Sept. 30,
$17,498,709, an average of $1,944.301 per month, according to
sales
$58 Million N. Y, Stats
And Oil Shares
from
delphia 2, Pa.
9-month
Sale of Chemical
With Shelley, Roberts
(Special to The Financial Chponicle)
DENVER, Colo.
Zimmerman
has
ated with Honnold
with Shelley, Rpberts & Co., First
Mr.
National Bank
Shelley Company.
and
Inc., 524 17th Street.
Zimmerman
was
(Special to The Financial Chronicle)
Joseph W.
—
become
DENVER, Colo. — Charles W.
Marion, Jr. has become associated
Building.
With White & Co.
(Special to The Financial Chronicle)
associ¬
Company,
In the past
with
E.
I.
ST. LOUIS,
sup
&
Mo.—James A. Al-
has joined the staff of White
Company,
Building,
west Stock
Mississippi
members
of
Exchange.
the
Valley
Mid¬
36
The Commercial and Financial Chronicle
(1548)
Continued
the similar week
in
the toll
The State of Trade and
with
expectations
history.
Steel Output
the
of
production
Rambler
prolific
most
Industry
in
■
was
Scheduled to Rise to 97.4% of Capacity
mechanical
few
improvements—but
will
1957
bring
com¬
"Steel" magazine currently forecasts.
Work on 1957 models is already under way, the metalworking
magazine pointed out. It takes 20 months of lead time to design
it.
automobile and tool
an
industry competition, states this trade paper, is forcing
Keen
automakers to change the basic body
shell and major sheet metal
face lifting in between.
Tne
years.
Tnis means upwards of
two years, according to "Steel."
This new policy could almost double the cost of each new
model introduced year by year.
To offset this, stylists and tool
•engineers are working together to anticipate styling changes and
provide for them in the original tooling. This may result in new
concepts for diemaking and materials handling. Plastic tooling may
two
every
with a
has been
major
three
years,
pattern
postwar
SI,000,000,000 for tooling
every
introduced.
be
aren't too feasible, "Steel"
a new car, and a
yardstick of public acceptance is needed to guard against a mar¬
Completely
lines
new
every
period of low consumption of steel accompanies
change-overs. This year the automobile industry has con¬
tinued to take in steel, expecting to use it on 1956 models. Demand
a
model
for autos is strong
models
1955
of
enough that dealers appear to be able to dispose
the time 1956 models arrive.
of steel lends support to tne feeling that steel
by
This strong use
1956 will approximate the 1955 output, with the
on the downside if there is any change, continues
this trade journal.
This year's production appears headed for a new record of
production
in
tendency to be
between
116,000,000 tons. The record, 111,609,719
If production hits 116,000,000 tons, the in¬
dustry will have operated at an average of 92% of capacity this
1953.
Last year's average was only 71%.
year.
pushed
Oct.
9
to
of June.
The
steel ingot output up one point in the week ended
97% of capacity, highest rate since the last week
■!
American
Iron
Institute
Steel
and
that
announced
the
for the
capacity
industry will be at an average of 97.4%
beginning Oct. 10, 1955, equivalent to
entire
capacity of the
week
2,350,000 tons of ingots
and
steel for castings
with
compared
as
96.7% of capacity and 2,334,000 tons (revised) a week ago. <
*
The industry's ingot production rate for the weeks in 1955 is
on
annual capacity of 125,828,310 tons as of Jan. 1, 1955.
based
For the
like week
duction 2,309,000
a
month ago the rate
95.7% and pro¬
weekly production
was
A year ago the actual
tons.
72.8%. The operating rate is not
comparable because capacity, was lower than capacity in 1955.
The percentage figures for 1954 are based on annual capacity of
125,330,410 tons as of Jan. 1, 1954.
placed
was
1,735,000 tons
at
a
Price
changes last week included advances for barley, hams,
a
Mild Increase in the
Latest Week
Grain
A
week
wave
output increased 12,000,000 kwh. above that of
when the actual output stood at 10,627,000,000
it increased 1,446,000,000 kwh., or 15.7% above the com¬
parable 1954 week and 2,332,000,000 kwh. over the like week in
kwh.;
of American
the
week
increase of 98,669
ended
cars, or
Oct.
1955, totaled 820,312
13.7% above the corresponding
cars,
or
1% above the
corre¬
Scheduling Declined Further Last Week
below that of the week
week
the
units, states "Ward's."
Last
week's
car
Last week the agency reported
the United
States.
there
were
16,755 trucks made
This compared with 23,058
Canadian output last week was placed at
5,320 cars and
In the previous week Dominion plants built
4,942
trucks, and for the comparable 1954 week 1,639
cars
1,155
cars
53%
and
latter
Eisenhower's
illness
found
fol¬
and
Business Failures Moved
Commercial and
and 863
zled
rose
to
207
in
the
week
in the
preceding week, Dun & Bradstreet,
Despite this upturn, failures were below a year ago
privately-owned stock:
all
the
share-owners
Nevertheless,
,are
have
we
that many women are puz¬
by—and
the
return to high and rigid price supports
a
suspicious
even
fundamentals
keystone
"It is,
slightly firmer trend despite
excellent
an
seed
bed
for
hard
1956
of
of
of
finance,
free
our
a
American
under
was
purpose
of
entering the
Women's International Exposition
to acquaint the thousands of ladies
Corn
they stood at 113,393 bags. Lard
therefore, the
Sutro Bros. & Co. in
Winter
who
will
facts
attend
with
about
stocks,
brokerage
changes,
hope
We
to
the
basic
bonds,
ex¬
houses,
etc.
perform
educa¬
an
tional public service by lifting the
mantle of mystery from finance."
Sutro's booth at the Exposition,
Miss
Levine
disclosed, will be
by experts from its own
manned
pressure
staff
prices reacted downward in sympathy with the drop in grains.
who
will
talk
to
visitors,
their
answer
questions and pre¬
sent demonstrations of the work¬
Current
ings of finance.
prices of hogs
were
Although no sales
of stock will be made at the
show,
said to be at the lowest level touched
since June 1946.
Cotton prices
she
trended downward most of the week and at the
decline
The
was
sparked by sharply higher estimates of
CCC loan entries continued to rise and totaled 92,600 bales in
the week ended Sept. 23, against 53,400 the week
the
for
season
through
167,400 bales
last week
were
a
that
date
previous. Entries
216,900 bales, compared
were
Sales of cotton in the 14 markets
ago.
year
With Merrill
■
"
Lynch
(Special to The Financial Chronicle)
•
KANSAS
CITY, Mo.—Oscar A.
Mayrhauser is
now
with
Lynch, Pierce, Fenner &
Beane, 1003 Walnut Street.
Von
Merrill
reported ht 290,300 bales, against 293,300 a week
Joins Merrill Lynch
earlier and 524,500 last year.
(Special to The Financial Chronicle)
Trade Volume Stimulated
sales
industrial
of
crop
coupled with the continued lag in exports,
year,
share
a
free
cheapness qf foreign growths and the contemplated sale
stocks at competitive prices after the turn of the year.
CCC
added,
utility stock will be given away
each day.
or
close suffered the sharpest losses in more than five years.
by Good Weather and Sales
Sharply Above Like Week of 1954
was
stimulated
week
by favorable weather
Moderate increases
promotions.
last
in sales volume were
ST.
LOUIS, Mo.
Lambert
rill
is
Lynch,
Jarvis W.
—
affiliated
Pierce,
with
Mer¬
Fenner
Beane, 511 Locust Street.
&
.r
+
Daniel D. Weston Adds
level.
The
dollar
of
volume
retail
4
was
trade
to
8%
in
the
period ended on
higher than a year ago,
Regional esti¬
according to estimates by Dun & Bradstreet, Inc.
varied
mates
the
from
comparable 1954 levels by the following
percentages: New England and South + 1 to +5; East and South¬
west +4 to +8; Midwest and Northwest +5 to +9 and Pacific
Coast -f-6 to +10%.
dollar
of
volume
wholesale
orders
remained
at
a
I
(Special to The Financial Chronicle)
BEVERLY
staff
140
of
in
moderate
1954
In
liveries
was
some
were
gain
over
lines
level
of
the
corresponding week
wholesale
Reserve
inventories
were
reduced
de¬
and
to
an
Oct.
&
Co.,
(Special to The Financial Chronicle)
ANGELES, Calif —Walter
F. McClintock and John A. Traver
on a
Board's
country-wide basis
index
for
the
week
as
Investors,
Wilshire
3924
taken from
Retail trade in New York City last week showed little if any
6% in volume
was
With
ended
increase of 8% was reported. For the period Jan. 1, 1955
1, 1955, a gain of 7% was registered above that of 1954.
the preceding week a gain of
fornia
Boulevard.
Oct. 1,
1955, advanced 15% from the like period last year. In the preced¬
ing week, Sept. 24, 1955, a rise of 3% was registered above that of
the similar period of 1954, while for the four weeks ended Oct. 1,
1955,
Weston
have become affiliated with Cali¬
prompt the past week.
Department store sales
Federal
the
D.
Beverly Drive.
Two With Calif. Investors
high
maintained.
Daniel
South
LOS
A
HILLS,
Calif. —
Weston has joined the
Nancy L.
level this week.
a
year
ago.
In
reported.
Lester, Ryons
1
(Special to The Financial Chronicle)
LOS
C.
ANGELES, Calif.—Harlan
Cottrell
is now with Lester,
Ryons & Co., 623 South Hope St.,
members
San
He
of
the
Francisco
was
ards
&
New
Stock
York
and
Exchanges.
formerly with Hill Rich¬
Co.
According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Oct. 1,
1955, rose 10% above that of the like period of last year.
In
preceding week, Sept. 24, 1955, a decrease of 4%0 was record¬
ed.
For the four weeks ending Oct. 1, 1955, an increase of 3%
occurred. For the period Jan. 1, 1955 to Oct. 1, 1955, the index
the
Slightly Higher
industrial failures
186
of
housewives.
part of the
futures,
soybean
of all
a
Hog values declined in late trading under the influence of heavy
market receipts and lower prices for some wholesale pork cuts.
and
trucks.
Inc., stated.
the
change in sales volume from that of the like week
trucks.
ended Oct. 6 from
grain
in
as
economy.
for
made
time last year
in the previous
week and 15,183 a year ago.
811
the
Trading in cocoa was fairly active with prices moving in a
narrow
range.
Warehouse stocks of cocoa continued to decline
and totaled 212,358 bags, against 218,026 a week previous. At this
the
output declined below that of the previous
week by 31,527 cars, while truck output decreased
by 6,303 vehicles
during the week. In the corresponding week last year 63,925 cars
.and 15,183 trucks were assembled.
in
for
lower
ample rains which relieved the dry situation in the South¬
The
preceding by 27.2%.
industry assembled an estimated 84,196 cars,
compared with 115,723 (revised) in the previous week. The past
week's production total of cars and trucks amounted to
100,951
units, or a decrease below the preceding week's output to 37,830
Last
in
of Amer¬
be
may
32%>
selling
and
showed
Wednesday of last week
1,
Output in the automotive industry for the latest week, ended
Oct. 7, 1955, according to "Ward's Automotive
Reports," continued
to decline
generally
said:
has
women
reported, and the dollar volume considerably exceeded last year's
Railroads.
1954 week, and an increase of 7,778
sponding week in 1953.
U. S. Car
a
markets
wheat
and
and
Loadings of revenue freight for the week ended Oct. 1, 1955,
1,287 cars or 0.2% above the preceding week, according
the Association
Levine
hard to imagine
captain of indus¬
try, but the fact is that she owns
year.
Increased
an
"It
picking, however, has made only a fair start due to
weather. Sales of grain and soybean futures on the
Chicago Board of Trade last week reached the highest volume in
some
time.
Daily average purchases totaled about 70,300,000
•and
Jeannette
are
'Mother'
products.
Retail trade
Loadings Turn Mildly Upward In the Period
Ended Oct. 1
cars,
and
President
of
news
Promotions Rose
for
by Dun & Bradstreet,
date last year.
same
firms also
life.
rainy
1953.
Loadings
the
declines
sharp
prospects for
Cash
recent
liquidation
the
by
for farm
the
industrial
and
today performing an everincreasing role in our country's
For
example, they control
65% of the private wealth, includ¬
ing 62% of savings accounts in the
savings and loan associations.
Registered
heavy buying movement on Monday of last week, influ¬
a
improved
west
of
brought
lowing
enced
with
the previous week,
Car
on
unsettled
were
Insti¬
Speaking for Sutro Bros. & Co.
week, particularly the feed grains.
of
•
Electric Institute.
to
275.76
markets
spon¬
exhibit.
Miss
Inc., turned sharply lower to register the sharpest weekly loss in
some time.
The index closed at 278.20 on Oct. 4, as against 279.45
earlier and
hand¬
480
mercial
Sharpest Weekly Loss in Some Time
week
from
philanthropy. Its
Women's National
of
will
Following irregular movements early in the week, the daily
wholesale commodiiy price index, compiled
in
Inter¬
Lexington Avenue,
New York City, said many com¬
ica
a
Women's
"We feel that the
relative
electric light
power industry for the week ended Saturday, Oct. 8, 1955,
estimated at 10,639,000,000 kwh., according to the Edison
week's
tute
sugar,
Wholesale Commodity Price Index Last Week
participate
to
endeavor
to
the
sor,
level.
The amount of electric energy distributed by the
This
women's
crafts
milk and currants. Lower in wholesale cost were
Hour, wheat, corn, rye, oats, bellies, lard, coffee, cottonseed oil,
cocoa, beans, eggs, potatoes, prunes, steers, hogs and lambs.
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its chief func¬
tion is to show the general trend of food prices at the wholesale
butter,
plans
Annual
32nd
Exposition, to be held
Nov. 7 through 13 at the 71st Reg¬
iment Armory, Park Avenue and
34th Street, New York City.
Some
100,000 women are ex¬
pected to attend the giant Exposi¬
tion which features every facet of
drop of
a
of the
one
national
or
Registers
*
was
the
7.8% from $6.69 a year ago.
production this
Electric Output
and
The latest index reflects
LXpOSIllOJ
Co.,
larger New York brokerage firms,
mild upturn the week before, the wholesale food
$6.15 recorded on that date.
&
Bros.
disclosed
Sharply
a
0111611 S
Tf
Sutro
bushels, against 65,500,000 the previous week and 42,600,000 last
.
operating rate of steel companies having 96.1% of the steelmaking
of
of
wheat.
Heavy demand for steel and favorable conditions for produc¬
tion
Following
115,000,000 and
tons, was set in
Jl|
rose to 163 from
Small failures under
more
ago.
price index, compiled by Dun & Bradstreet, Inc., dipped sharply
below the previous figure of $6.28, to stand at $6.17 on Oct. 4, the
lowest level since Aug. 30, and only slightly above the 1955 low
year
ket miss.
Normally,
or
year
a
Wholesale Food Price Index Reacted to
It takes too long to design and tool
pointed out.
$5,000
Lower Level the Past Week
cars,
new
of
below the 187
■ ■
$5,000, edged up to 44 from 31 in the previous week and 43 in the
comparable week of 1954. Eight businesses failed with liabilities
in excess of $100,000 as against 16 a week ago.
Most of 1956 model cars are face lift jobs—new in appearance,
pletely
liabilities
with
Failures
155 but remained
RrAC FvhlhSt
DIUOi kAllllfll
ChIm
Willi U
in 1939.
from the 279 recorded
off 26%
This Week
with
although they remained slightly above the 186
of 1953. Continuing below the prewar level,
when 230 occurred,
jrom page 5
Thursday, October 13, 1955
...
recorded
1954.
a
rise of 2%
'
from that of the corresponding
period of
r
Joins Leonid. Schneider
(Special to The Financial Chronicle)
LOS
Bennes
have
ANGELES, Calif.—John V.
and
Beatrice
P.
D'Artois
joined the staff of Leonard
B. Schneider, 5909 Melrose Ave.
Number 5472
182
Volume
.
.
The Commercial and Financial Chronicle
.
(1549)
The
Indications of Current
Business Activity
week
Latest
AMERICAN
IRON
AND
month ended
Week
Ago
*96.7
.Oct. 16
§2,350,000
*2,334,000
AMERICAN
Crude
PETROLEUM
oil
and
output—dally
42 gallons each)
Crude runs to stills—dally
Gasoline
output
(bbls.
average
of,
Kerosene
2,309,000
6,660,600
*6,671,300
6,661,876
Total gas
7,642,000
25,426.000
26,183,000
24,371,000
Sept. 30
2,012,000
2,061,000
1,979,000
10.843,000
11,131,000
11,567,000
10,429,000
7,430,000
8,066,000
7,482,000
7,908,000
151,286,000
151,805,000
153,292,000
152,118,000
Sept. 30
36,413,000
36,254,000
34,945,000
AMERICAN
2,167,000
Sept. 30
Sept. 30
terminals, in transit, in pipe lines—
gasoline (bbls.) at
Sept. 30
38.390,000
(bbls.)
at
oil
(bbls.)
at
Sept. 30
143,722,000
142,814,000
Residual
133,365,000
(bbls.)
at
Sept. 30
46,754,000
«46,932,000
46,587,000
Natural
Benzol
56,365,000
freight loaded
Re/enue
freight received from
CIVIL
ENGINEERING
(number
of
CONSTRUCTION
U.
S.
Private
1
of
(no.
1
820,312
1
686,029
>"
819,025
794,192
681,043
673,760
;
$266,042,000
$375,714,000
154,320,000
289,809,000
92,655,000
6
134,372,000
111,722,000
85,905,000
100,276,000
0
122,092,000
74,646,000
78,897,000
70,143,000
6
12,280,000
37,076,000
7,008,000
30,133,000
Oct.
Oct.
1
9,580,000
*9,570,000
9,520,000
8,116,000
1
577,000
602,000
444,000
550,000
•
Slab
168,935
29,000
.
141,800
T
40,000
45,000
22.334,000
22,448,000
9,050,000
11,840,000
9,208,000
245,332,000
251,722,000
231,469,000
16,189,000
and
1,648,000
14,170,000
19,905,000
export
(barrels)
.
INSTITUTE
194,037,000
30,000
:
ZINC
198,389,000
20,167,000
.
(barrels)-
domestic
213,983,000
21,053,000
(barrels),
(barrels I
stock
■■
218,596,000
205,600,000
I
—
zinc
smelter
2.000
INC.—Month
of
(tons)
SALES
(in
000
INDEX—FEDERAL
grades
of
all
(tons
;
83,448
*84,874
60,137
87,365
90,080
77,885
42,167
*46,084
175,505
52,278
73,632
48,818
41,000,000
43,430,000
34,471,000
2,323,000
*1,812,000
2,253,000
119
*119
111
121
Stocks at end of period (tons)
Unfilled orders at end of
period
OUTPUT
of
=
RESERVE
(BUREAU
*105
113
._
—
(tons)—,
126
1
•y
i2i
125
Oct.
INDUSTRIAL)
—
DUN
8
10,639,000
10,627,000
9,193,000
STORE
SYSTEM
Month
&
BRADSTREET, INC.
lignite
ana
(net tons)
(net
:_
tons)——
110
SERVE
10,155,000
MINES)—Month
September:
DEPARTMENT
AND
OF
Pennsylvania anthracite
Oct.
100
kwh.)
(COMMERCIAL
output
pounds)
Bituminous coal
STORE
output
152,140
226,683,000
(barrels)III
Shipments (tons of 2,000 pounds)
COAL
EDISON ELECTRIC INSTITUTE:
Electric
3,785; 100
24,076
OF MINES):
(tons)
SYSTEM—1847-49 AVERAGE
FAILURES
3,955,900
3,330,526
25,788,000
output
consumption
Increase all
$192,931,000
330,197,000
Oct.
lignite
$464,569,000
6
Oct.
BUREAU
S.
and
6
Oct.
Pennsylvania anthracite
BEPARTMENT
4.123,537
20.233
September:
State and municipal
Federal
(U.
imports
AMERICAN
Oct.
Public construction
coal
4,219,316
(barrels of 42 gal¬
output
(barrels)_—___!__
614,047
Oct.
construction
Bituminous
Ago
INSTITUTE—Month
products imports
(barrels)
721,643
ENGINEERING
—
construction
COAL OUTPUT
oil
Refined
NEWS-RECORD:
Total
gasoline
Indicated
Oct.
cars)__Oct.
cars)
connections
Year
Month
4,046,943
_
output
Crude
RAILROADS:
Revenue
PETROLEUM
domestic production
lons each)
127,836,000
oil
ASSOCIATION OF AMERICAN
Previous
of July:
Total
Domestic crude oil
Distillate fuel
fuel
of that date:
6,979,00*
25,448,000
(M therms)
Natural gas sales (M therms)
III I™
Manufactured gas sales (M therms)—.
Mixed gas sales (M
therms)
6,144,650
7,404,000
unfinished
(bbls.)
are as
Month
1,735,000
1l7,462,000
Residual fuel oil output (bbls.)
Stocks at refineries, bulk
and
of quotations,
cases
AMERICAN GAS ASSOCIATION- -For
month of
-v
_Sept:30
-
in
or,
August:
Sept. 30
(bbls.)
average
that date,
either for the
are
Latest
72.8
Sept. 30
(bbls.)
Kerosene output (bbls.)
Distillate fuel oil output
Finished
95.7
INSTITUTE:
condensate
Dates shown in first column
Ago
§97.4
Week
on
production and other figures for the
cover
Year
.Oct. 16
ingots and castings (net tons)
month available.
Month
Steel
..
or
or
Previous
STEEL INSTITUTE:
Indicated steel operations (percent of
capacity).
Equivalent to—
y
following statistical tabulations
latest week
of
SALES—FEDERAL
RE¬
1947-4!) Average=l<)()—
—
September:
Adjusted for seasonal variations
Oct.
6
207
186
205
230
Without
seasonal
adjustment—
CEON AGE COMPOSITE PRICES:
Finished steel
Pig iron
(per
lb.)
(per
Oct.
4
ton)
Oct.
Oct.
gross
Bcrap steel (per gross ton)
5.174c
5.174c
4
$59.00
$59.09
$59.09
$56.59
4
$44 83
$44.83
$43.83
$32.00
ELECTRIC
4.801c
Kilowatt-hour
-Month ef
Revenue
METAL
PRICES
Electrolytic
(E.
M. J.
&
QUOTATIONS):
July
copper—
refinery at
refinery at
Export
Lead
tin
(St.
Louis)
(East
St.
5
43.850c
44.175c
44.375c
5
43.475c
44.950c
44.425c
32.350c
5
96.125c
96.750c
95.375C
94.750c
at
Oct.
5
15.500c
15.500c
15.000c
14.850c
Oct.
5
15.300c
15.300c
14.800c
14.550c
13.000c
12.500c
11.500c
sales
to
ultimate
consumers—
39,557,320
Louis)
at
Oct.
at
5
13.000c
CAN
OF
INSTITUTE
STEEL
*369,414
193,081
266,715
STEEL
50,617,033
*219,444
272,479
*$76.36
$71.06
83.83
*82.21
76.59
67.83
STRUCTURAL
51,875,232
311,453
ultimate customers at July 31
FABRICATED
33,894,024
$604,006,000
*67,89
64.68
of
:____
______
$647,704,000
51,981,145
—
customers—month
38,850,790
561,284,000
$77.11
ultimate
29.700c
Oct.
Oct.
York)
(New York)
Lead
Oct.
at
(New
INSTITUTE:
July (000's omitted)
from
Number of
Domestic
Straits
Zinc
EDISON
5.174c
(AMERI¬
CONSTRUC¬
TION)—Month of August:
Contracts
closed
Shipments
(tonnage)—estimated
(tonnage)—estimated
MOODY'S BOND PRICES DAILY AVERAGES;
U. 8. Government Bonds
Average corporate
Oct. 11
95.03
100.00
107.62
107.27
110.52
AVERAGE
110.88
110.52
115.43
LABOR—Month
Oct. 11
109.60
109.42
108.88
112.19
107.80
102.63
102.63
Oct. 11
"-Oct. 11
Oct. 11
106.21
106.21
108.16
107.98
108.70
108.52
108.34
112.00
Oct. 11
2.80
2.84
2.87
2.50
Oct. 11
3 30
3.30
3.32
3.14
Oct. 11
:
95.45
107.62
Oct. 11
Aa
95.98
Oct. 11
111.07
;
3.11
3.12
3.14
2.88
.—
A
Railroad
Public
Group
Utilities
Group
Group
Industrials
MOODY'S
U. S.
i
BOND YIELD
107.44
102.63
11Q.52
104.66
105.86
108.88
107.80
110.88
'
All
Aaa
manufacturing
goods
Hours—.
All
-■*
MOODY'S
NATIONAL
All
of
Unfilled
Durable
Non-durable
3.59
3.38
3.40
3.23
3.27
3.28
3.29
3.12
3.24
3.25
3.26
Oct. 11
AVERAGE
406.9
409.5
404.8
294,523
256,104
382,847
321,548
ASSOCIATION:
Oct.,
1
Oct.
=
1
Oct.
Oct.
of period
1
102
102
1
585,740
585,767
Oct.
100
292,654
293,667
^
107.04
107.09
METAL
PRICES
(E.
M.
&
J.
EXCHANGE
EXCHANGE —SECURITIES
Odd-lot sales by dealers
291,453
260,584
101
...
665,766
428,796
106.39
106.06
COMMISSION:
Number of shares
1,307,513
$74,950,287
1,019,676
854,453
—Sept. 17
value
Dollar
Odd-lot
Sept. 17
900,018
$58,281,736
$47,603,905
$44,330,803
purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
—Sept. 17
•1,124,494
857,024
675,607
969,947
Customers'
short sales
Sept. 17
4,090
4,288
5,338
11,580
Customers'
•
other sales
Sept. 17
1,119,504
$58,635,672
Dollar value
Mound-lot
£ePt. 17
sales
by dealers—
958,367
$43,710,337
Common, New York (per pound)
IlAntimony,
York
New
308,8C0
•
222,880
177,600
313,590
Sept. 17
sales
222,880
mloo
313,590
416,080
367,840
278,380
purchases by dealers—
Sept. 17
499,110
ACCOUNT
Total
round-lot
MEMBERS
OF
Other
TRANSACTIONS
MOUND-LOT
FOR
OF
ACCOUNT
436,530
13,462,750
10,045,810
7,152,220
10,510,040
7,588,750
10,757,640
28.500c
31.167c
29.000c
—
$92,780
$84,000
$84,000
—
12.928c
12.500c
11.408c
£91.886
£89.710
£80.614
£91.480
£89.716
£80.454
_.
ton)
31.970c
$1.70000
$1.70000
$1.70000
$1.70000
$1.70000
$1.70000
$1.70000
$2.60000
$2.60000
90.804c
90.750c
pound)—
pound)
Cobalt, 97
Silver
and
+
(per ounce)
Gold
96,458c
93.535c
95.458c
92.535c
$35,000
$311,000
24.333c
22.200c
32.500c
30.574c
27.000c
64.500c
pound)
$35,000
$253,889
24.400c
64.500C
60.000c
$2.25
1
$35,000
$263,400
__
pound)
:
(per
73.239
$2.80080
95.245c
—
—
flask of 76 pounds)
plus ingot (per pound)
(per
79.119
$2.78665
9J6.245C
min.—
99%
85.250c
79.483
■_
.
(per ounce, U. S. price)—
(per
.
$2.78583
(pence per ounce)—
Exchange (Check)
New
York straits
Tin,
$2.60000
Exchange—
Sterling
Silver, London
—
$2.25
VEHICLE
MOTOR
$2.25
IN
—
FACTORY
FROM
S.—AUTOMOTIVE
U.
SALES
MANU¬
FACTURERS' ASSN.—Month of August:
specialists in stocks in which registeredTotal purchases
—Sept. 17
Short sales
J
-—Sept. 17
Other
30.667c
$1.70000
PLANTS
MEM¬
of
Total
number of
vehicles——
1,655,230
1,287,840
875,060
1,207,550
Number
of
266,640
217,460
188,380
202,350
Sept. 17
1,369,890
Number
of
motor
1,069,280
682,650
Sept. 17
1,636,530
1,286,740
871,030
1,233,880
Number
of
buses
Sept. 17
—Sept. 17
390,220
255,550
183,010
397,250
716,163
768,621
521,450
620.610
658,736
445,306
95.119
109,589
75,835
434
296
309
1,031,530
--
-
34.137c
33.500c
10,353,830
14,032,460
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions
36.470c
33.000c
Laredo
$1.70000
403,810
Sept. 17
■
464,230
Sept. 17
sales
Total sales
569,710
14.400c
(per
Bismuth
Sept. 17
£99.239
(per
Aluminum,
sales—
£105.920
§Cadmium
**Nickel
Short sales
£107.293
(Cadmium
Magnesium ingot
(SHARES):
£101.347
bulk, Laredo—
ounce)
(per
14.800c
£10G.494
tCadmium, refined (per pound)
Quicksilver
ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR
refined
14.598c
15.000c
14.940c
Zinc (per pound)—East St. Louis__.
ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long
§§New York, 99%
Number of shares
TOTAL ROUND-LOT STOCK SALES
29.700c
30.066c
15.100c
Sterling
308,890
38.150c
40.009c
£107.568
Boxed-
pound)
Silver, New York
Sept. 17
Sept. 17
Short sales
Round-lot
670,269
$34,452,337
-
Number of shares—Total sales
Other
852,736
$44,083,755
44.052c
44.339c
——
Common, St. Louis (per pound)—
t (Prompt, London (per long ton)
ttThree months, London (per long ton)
Platinum
purchases)—!
(customers'
1.65
QUOTATIONS)—
Electrolytic domestic refinery
Electrolytic export refinery
(per
Y.
N.
1.91
1.71
40.1
Lead—
(per pound)
ON
$1.79
*2.01
39.7
'•
Average for month of September:
Antimony
SPECIALISTS
*$1.89
2.02
._
.
Antimony
AND
39.2
1.70
1
goods
STOCK
DEALERS
39.7
$1.89
1.
goods
CTOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
*40.9
Copper (per poundi—
404.5
.
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
*4
3.06
INDEX
at end
(tons)
*
6.4
40.8
41.5
39.9
—
3.47
3.38
activity
orders
3.05
3.14
Oct. 11
(tons)
Percentage
L
,
manufacturing
3.23
3.31
Oct. 11
(tons)
Production
—
goods
Hourly Earnings—
3.20
3.59
—
PAPERBOARD
Orders received
;
goods
3.29
3.59
—
COMMODITY
OF
manufacturing
3.19
——Oct. 11
Group
Utilities Group
Industrials, Group
DEPT.
Non-durable
3.129
Oct. 11
—
Public
S.
*
Oct. 11
Railroad
HOURS—WEEKLY
August:
Non-durable goods--
Oct. 11
Baa
of
Durable
Durable
corporate
AND
ESTIMATE—U.
Weekly Earnings:—
DAILY AVERAGES:
Government Bonds
Average
107.80
FACTORY EARNINGS
sales
Total sales
passenger
:—.—
cars_
trucks
:
Other transactions initiated on the floor—
Total
purchases
Short sales
Other
—
transactions initiated off the
Total
3
9,000
26,650
233,650
158,630
361,290
310,300
177,630
Sept. 17
—Sept. 17
Sept. 17
.
Total sales
——
295,231
450,725
345,345
157,612
130,150
115,100
53,180
756,980
763,834
427,485
458,550
Sept. 17
914,592
893,984
542,585
sales
Total sales
LABOR
—
Commodity
NEW SERIES
(1947-49 = 100):
PRICES,
WHOLESALE
—
U.
S.
DEPT.
2,640,681
1,994.115
1,403,415
2,049,375
457,102
374,260
322.480
282,180
2,480,950
2,116,764
1,268,765
1,851',370
2,938,052
2,491,024
1,591,245
2,133,550
OF
commodities
Oct.
4
89.0
88.3
92.2
foods
9C^'
?
101.0
*101.8
101.8
Oct.
Oct.
4
80.9
83.9
84.2
84.6
4
118.0
118.0
117.8
114.6
commodities
other than
farm and foods
*111.4
111.1
109.6
cf
figure,
27.702,000
18,828,000
17,524,000
107
EARNINGS
111
SOCIATION
OF
CLASS
AMERICAN
ROADS
I
102
(AS¬
RRs.)—Month
of August:
Total
operating revenues
$905,142,066
$849,559,590
$804,816,760
Total
operating expenses
669,747,436
644.827,920
623,326,478
73.99
75.90
77.45
$105,55<,344
S90.034,664
$74,494,483
109,723,193
92,612,113
84,122,360
93,000,000
72,000,000
65,000,000
.___,
as
_
Net
railway operating income
Net
income
*Revisetl figure.
producers'
**F.o.b.
+Based
and platers'
Port
or
before charges
(estimated)
after charges
(.Domestic five tons
lilncludes 874,000 barrels of foreign crude runs.
§Based on new annual capacity of 125,828,310 tons
Jan
1, 1955, as against Jan. 1, 1954 basis of 124,330,410 tons.
tNumber cf orders not reported since introduction of Monthly Investment Plan.
-Revised
25,482,000
used
103.3
Meats
All
Capacity
26.783,000
31,260,000
16,720,000
of month—barrels)
end
(at
'1'axes
Group—
111.1
Processed
27.332,000
29,124.000
■_
Operating ratio
87.9
All
Stocks
RAILROAD
Sept. 17
-Sept. 17
—-Sept.. 17
Sept. 17
i
purchases
Short sales
Othar
July:
(barrels)
Production
511,730
—;
444,575
Total round-lot transactions for account of members—
Total
of
MINES)—
Shipments from mills (barrels)
purchases
sales
Month
OF
387,940
floor—
Short sales
Other
26,650
354,080
386,930
Total sales
Other
32,850
—Sept. 17
Sept. 17
sales
(BUREAU
CEMENT
PORTLAND
on
at
boxed. §§Price for tin contained.
included,
((Average of daily mean of bid and ask
London Metal Exchange,
t(Delivered where freight
but less than carload lot,
S. duty
morning session of
from East St. Louis exceeds 0.5c.
quotation
(Based on the average of the
§ Average of quotation on special shares to plater.
the producers' quotation.
quotations.
more
Colburne, U.
,
37
38
The Commercial and Financial Chronicle
(1550)
Cites Potential Weak
higher
Spots Along With
Elements of Strength
points to saturation in
year,
are
especially
if
a
comprehensive
highway program can be agreed
uppn.
But perhaps the most im¬
pressive indications of underlying
strength are given by the con¬
tinued rising trends in personal
new car
increasing volume of residential construction
quarter.
another
area
anticipated,
increases
where
sales
potential
weak spots in economy's armor, but adds, because of signifi¬
cant broadening of recovery, the over-all picture contains many
elements of current and prospective strength.
and
is
governments
Review of Credit and Business Conditions"
Reserve Bank of New York, in surveying business
activity during past
rate in¬
third
the
for
Capital outlay by State and local
in the Business Outlook
October "Monthly
of Federal
record
the
than
dicated
as
employment, and retail
by the surveys/that
income,
and
sales,
show
consumer
and business con¬
article entitled "A Year of
an
decline in the rate of new hous-
sure,
October issue
ing starts during the third quarter, although August showed an
er
increase
which have
Expansion"
of
in
the
Credit
of
"Review
the
and
Business
Conditions,",
monthly
publication of the Federal Reserve
Bank of New York, attention is
called to both potential weak spots
and the contrasting elements of
strength in the outlook for the
national
Housing
into
previousand
has
of
production
.activity, business
pointed to several
have
areas
in
might
interfere
omy's
which
of
course
the
August,
Home
econ¬
generally
bal¬
out
ing the second half, with possible
effects
the
for
entire
economy.
Retail sales of automo¬
biles
accessories
and
during
the
first half of the year were larger
than in any previous six-month
tions
at
substantial
a
in
against acquiring mortgages
than the increase
available
their
These
funds.
caused many
observers to expect some declines
in residential construction, at least
in
the short
have
by
record
half-year
growth in outstanding automobile
instalment credit of $2.2 billion,
which
a
accounted
for
most
of
the
2.4 billion rise in total instalment
credit
outstanding during the first
half of the year.
Of particular
to
concern
observers
some
evidence of
easier
was
credit
the
terms—
especially a considerable length¬
ening of maturities — on auto¬
mobile loans, since this supported
the view that there might, be 'bor¬
rowing' from future sales.
dition, production of
much greater than
ord
inventories
In ad¬
new cars was
sales and
built up
rec¬
in deal¬
ers' hands during the spring.
"New
sales
car
found
the
large
areas
carried
war
of
there also
rapid
theless, because of the significant
broadening of recovery, the over¬
all
picture contains many ele¬
ments of current and prospective
strength. This strength is mani¬
fested, for example, by the plans
increased
an
rate
invest¬
of
formula
equipment dur¬
ing the final quarter of this year,
as indicated by the recent Depart¬
refered to earlier.
vey
to
this
SEC
and
rv-
the
for
larger
ly
•
V.
of
a
the U. S. S. R.
"The
that
few
questions of building
U.
S.
S. R.
In
the
very
billion
0.7
or
manufacturers
component;
a
country."—Vyacheslav M. Molotov.
our
so
much importance
should be attached
"ideological" questions
as
these.
Socialism, if established in Russia, is certainly
manufacturing
billion,
of
society which has already been built in
able that
of
because
the
the presence
country beset with the problems facing the
to such
1951-54
in
on
Kremlin, it is to Western minds almost inconceiv¬
years.
mainly
a
Socialist society in the
a
It throws doubt
the main in
and
inventory-sales ratio has been
below
brings confusion into idealogical
on
higher ratio that prevailed
preceding
it
questions and contradicts the decisions of the party
to the
tending to return
building socialism in
given in party documents.
political harmfulness of this formula lies in
fact
the
accumula¬
stocks
that
only the foundations of a Socialist
society have been built, that is the
Socialist society, which does not corre¬
evaluations of the results of
that the re¬
between
alleged¬
Socialist society has still not
a
spond with reality and is at variance with repeated
tion.
"This is not to say
im¬
very
Molotov
M.
basis
rapid
changes
$29.7
countries which have
only the first but
been built in the U. S. S. R.,
Socialist
the
taken
"This mistaken formula leads to
preferred
but
stocks
average
adjusted annual rate
So¬
a
society have already been
built, there are also those people's
incorrect deductions that
a
tures
an
of
socialism.'
year
planning fourth-quarter expendi¬
at
Union,
Soviet
the
portant steps in the direction of
firms, in the sense that
considerably
are
Socialist
a
foundations
democratic
These deprob-
years.
in
'involuntary'
were
during
with
the
total
were
is
of building
question
;
during the spring,
business stocks
declined to the lowest
of
sales increases delayed
The
According
businessmen
survey,
build-.
peaks
eariier
much
sur¬
the
on
half
ratio
sales
Communism
vs.
where
moderately during
of this year and
business sales rising rapidly
hold
might be considered 'normal'."
ex-
gether
outlookf .|p>lqng as
businessmen might have
to
with improving sales
society in the U. S. S. R. was permitted by me.
"In the report it was said: 'To-
quite
first
ably
businessmen's
rise in
some
stocks along
relation
in
the current pe¬
to the session of the Supreme
on Feb. 8, 1955, a mistaken
report
my
speculativ^^euihd-/
of
lationship
ment in plant and
ment of Commerce
Socialism
-j
*'In
spend¬
lation, which would Ofea&Jfcb- un¬
balanced, unsustainable expansion
for the economy, is avoided. De¬
velopments so far are partially
reassuring.
Some rebuilding of
stocks was to be expected after
the 15-month period of liquida¬
tion
that
ended last December.
new
high
were
cialist
number of
Never¬
for not
•
too
riod,
time,
goods,
to find
surprising
Soviet of the U. S. S. R.
corollary reduction
a
the immediate
ciines
^ntribuUonT" to 'the
for
reasons
are
not
to inventories. For
that
Korean
same
inventories also constttute
jmp0rtant area of .strength in
the
deal of attention, particularly be-
the
the
°f
total
weak-
earlier stages of recovery.
At
ii-<*
"Prospects for a further
UP
an
ceeding
Strength
potential
during
period.
they
necessary
densome.
the
of
it
supplies
ybar and has made the required
debt payments relatively less bur-
to
of
continued
not
Nevertheless, it is noteworthy
that disposable personal
income
has risen steadily throughout the
^
supported
sales
have
carry
mu^uless.ihah^
during^fte~ year,,**
rise "in retail"sales".'""Sale's"of*new ness in the economy that have been to sales
cars
alone
totaled
3,850,000, as *3 ?
?bove have received a great p0jn^ jn several
against 2,825,000 a year earlier, an
increase of 36%. The increase was
that
ly
to
Moreover, with accumulation pro¬
run.
Elements
"The
the
of
part
Loan
faster rate
a
developments
period and 18% greater than dur¬
ing the first half of 1954, account¬
ing for
loans to
the
month
last
and
Banks cautioned member associa¬
frequently singled
that might weaken dur¬
unsettling
raised
have
Banks
Loan
tions,
was
as one
number of the Federal
a
member savings and loan associa¬
Earlier in the year,
for example, the market for auto¬
mobiles
"
Since early
their interest charges for
anced growth.
it
debt
in the stream of consumer
a
is
and
in many
durable
especially
lines,
rela¬
'normal'
a
marked by shortages1
was
a
tionship; manufacturers apparent¬
ing.
on
from other borrowers.
developments
with
with
sions,
from
than
That period
World War II years.
prompt-
a
rather
economy
deviation
tend to catch up
may
to
delivery
risen
extensions
new
reflect the transition to
has been ex¬
the fact tb^eowsum^
loans that
they insure or guarantee; mean¬
while, the availability of funds
for
mortgage
commitments has
been reduced somewhat, owing to
the large volume already committed and the competing demands
records
economic
analysts
acted
over
instalment
tighten slightly the maturity and
matured
expansion that has topped
an
Administration
downpayment terms
economy.
recovery
Administration
Federal
and the
Veterans
According to the "Monthly Re¬
the
July.
"At the end of July, the
view":
"As
over
purchased materials in relation to
sales. This, in turn, has seemed to
concern
some
pressed
pecting the ratio of total business
stocks to sales to fall to the low
levels of the immediate post-
of
stocks
Thursday, October 13, 1955
.
levels. To be
fidence to be at high
In
smaller
holding
now
.
.
far from
a
success
ism is still but
are
a
today: conversion to commun¬
doctrinaire dream.
high during the third quarter, and
inventories
were
reduced
some¬
Continued
from
what in August and more substan¬
during
tially
duction!
September
cut
as
have ben financed to
tent
instalment
by
have
been
fostered
competitive selling.
well
as
as
the
large
a
will
lars
of lost money.
couraging
David
that
The
post en- and to guided missiles.
4u:~
j
this
in
news
regard
recently from Major General
came
Baker
H.
who
heads
procurement for the airforce.
model changes are not so great as
told
last year and
be
higher, have led a number of an¬
alysts to question whether next
year's sales will match the high
will
up
He
San
may
in
the
as
a
rate of
Some
armor.
a
increase
and
not sustainable.
ob-
of
of the year, surpassing
period of 1954 by 31%.
The rising trend in expenditures
leveled off and seasonally adjust¬
ed housing starts declined slightly
of
spring,
the
fprmc
leiins
fhpn
men
I here
appeared
as
easy
ovailoMo
aval id me
to
be
bears
His address
reading.
the initial
borrowing
«mro
wo ie
a
For
continue, from
aircraft
in
as
he
conven-
same
group
upon
builders
1954 Sales
nff
on.
further
so
are
government
or-
a rate that would have seemed
incredible ten years ago. This
should prove very profitable business for the aircraft makers,
at
jn
But the ders for three-fourths, or more, of njes>
of aircraft manufac-
their annual sales, makes some in-
summary:
view
that
when
It is the writer's
aircraft compa-
stocks may be had on such a
of present price-timescxpected-earnings over the next
the of the business. But this concern few years, one is well repaid for
automobile industry is pertinent. is perhaps not well founded. Air the risk taken of fluctuations in
Not since Henry Ford reluctantly
defense is vital to the very life of these earnings.
Having declined
abandoned his old Model-T has our country and nothing appears jn many cases'by a third, or more,
there been a year when the auto- likely to change this in the fore- from thoir nealr fpvpU parlW in'
mobile makers did not expend seeable future. The growing mar¬ the year, they have shown a tend¬
*
P K
S
huge sums annually for changing ket for commercial aircraft should ency in recent market slumps to
models. In this period 1954-56 far not be overlooked as negligible. "bottom out."
They may prove
As sound a prophet as Mr. Rickmore is being spent by the automore resistant to any new decline
enbacker predicts that within
a
mobile makers in such shifts than
than many of the old favorites.
by the aircraft makers. One might few years the bulk of the nation's
They may also prove to be lead¬
think the aircraft industry would long distance passenger travel will
ers on a further market rise when
feel rather comfortable with the be airborne. The airlines are planprediction of a defense authority ning an expansion of their fleets and if it comes!
turers
are
Again
vestors
in all these lines.
a
comparison
j0w
rati0
doubtful of the continuity
with
/"
Compared
Estimated
Present
Present
1955
Price
Price
Earning^
Earnings
Times
Times 1955
Per
Per
1954
Estimated
1954
With Present Backlog
(in million dollars)
1954-
1955
Week Ending Oct. 7, 1955
Low
Last
High
1954
Present
Sales
Backlog
(1)
High
Low
Share
Share
$1,033.2
$2,131
2 years
75
23 Va
88%
54%
63%
60%
62%
$11.39
$10.00
5.5
6.3
Douglas Aircraft
915.2
1,920
2 years
86%
26%
91%
62 %
73
67%
71%
9.80
8.00
7.2
8.8
Lockheed
732.9
1,085
1% years
52 Va
23
64%
40%
48%
44%
47%
7.94
6.50
5.7
7.0
52%
year
half
during the
still higher.
a
like
stimulus
billion
that the shifting of empha-
were
by the Federal Government, out¬
lays for residential construction
rose
to record levels during the
the
$6.6 billion
$6.2
tional type planes to the jet types
marked
first
about
mortgage
early this
in
that future estimates for
sis would
and
easing of maturity and
downpayment terms, particularly.
for loans guaranteed or insured
a
the
even *
Encouraged by
availability
commitments
to
from
up
whole
noted
had felt that certainly the
perhaps
the current level of building
ready
range
received special atten¬
potential weak spot in
economy's
servers
Association
the years 1956, 1957, 1958 and 1959
dential construction earlier in the
tion
amount
1955,
1954 and
"The increasing volume of resi¬
also
the Air Force
Francisco in August that deliveries by the aircraft industry
rate achieved this year.
year
orders
dependent
credit,
and
by intensely
These factors,
that prices
that
Outlook for the Aircraft Stocks
ex¬
indications
be
forthcoming from
the government of over $6 billion
annually. Of course, the very fact
pro¬
to
back
permit
retooling for new models.
Sales
during the summer months also
was
that for the next four years there
12
page
Boeing Airplane
United
Aircraft
General
North
655
1,325
2 years
648.6
Dvnamics
American Aviation
1,083
1% years
645.8
1,148
2 years
-
High
Low
30%
56
48%
56
52%
53%
5.11
6.00
10.0
9.0
18
80
48%
55%
52%
53
4.72
4.00
11.5
13.6
52 Va
20
76
41 Va
65%
62
63%
6.46
9.50
10.0
6.8
22%
2.50
4.CO
9.0
5.5
42
6.71
10.00
6.4
4.5
4.0
6.0
475.1
818
2 years
18%
24%
15%
23%
21%
323.5
950
3 years
39%
20
47%
31
44 Va
42
G'lenn
270.7
600
2% years
32%
15 Va
44
23%
33
29%
32
7.85
5.00
Wright
Martin
L.
_
235.3
Aircraft
305
39%
22%
45%
32%
37%
35%
35%
5.61
6.00
6.3
5.9
^248
1% years
25
11%
38
22
24%
23%
23%
2.47
2.CO
10.0
12.0
306
1% years
34%
39%
22%
26%
24
21%
2.62
7.50
9.0
3.4
1% years
McDonnell Aircraft
154.6
*305
2 years
Chance
149.6
183
1 Va years
Vought
Totals
Aircraft
$6,596.5
^
7%
32
19
44 Va
28%
43%
41%
42%
6.33
7.00
6.2
5.7
38%
22
68
29%
33
31%
32
6.15
5.00
5.0
6.3
$85.66
$87.50
7 times
7 times
$12,407
Tolal cost and net earnings of one share of 14 stocks—$602.
(liNumber of years present
*Has
just
■
171.4
___
Aircraft
Northrop
7%
185.6
Aircraft
Grumman
Bell
—
Earnings Earnings
41%
Republic Aviation
Curtiss
-
Aircraft
-
received
new
backlog would last at last year's rate of sales.
government contract amounting to $303 million.
Volume
182
Number
5,472
.
.
The Commercial and Financial Chronicle
.
Securities
Academy Uranium
&
Oil
Now
Corp.
June 10 (letter; of notification) 15,0U0,000 shares of com¬
mon stock. Prifee—At
par (one cent per share). Proceeds
—For mining operations. Office—65 East Fourth South
St., Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.
Admiral Finance Corp.,
St. Louis, Mo.
July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due
Sept. 1, 1970. Price
—At 100% of principal amount. Proceeds — To retire
$513,182.50 of outstanding "'mior
subordinated deben¬
tures, series B, and for expansion and working capital.
Underwriter
Paul
—
C.
Kimball
&
Co.,
Chicago,
111.
Admiral Finance Corp., St. Louis, Mo.
and 10,000 shares of common stock
(par 10 cents) to be offered in units of five preferred
and
one
Underwriter
share.
common
Paul
—
C.
Price
Kimball
&
$50
—
per
Co., Chicago,
unit.
111.
Aeco Corp., Beverly Hills, Calif.
Sept. 19 filed 1,245,000 shares of common stock (par 10
cents) to be offered for subscription by common stock¬
holders
plied
for
on
by
share-for-share
a
amendment.
basis.
Price—To
Proceeds—To
be
sup¬
development of oil and gas prop¬
acquisitions. Underwriter—None, of¬
fering to be made
by brokers.
on
"direct
a
communication"
basis
Allied Industrial
Development Corp.
(letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
and gas operations. Office—1508 Capitol
Ave., Houston,
Tex. Underwriter
Paul C. Ferguson & Co., same ad¬
June
Oct.
of leases.
Address—P. O. Box
1387, Tulsa, Okla.
Under¬
writer—United Securities Co., same address.
Allstates
Credit
Corp., Reno, Nev.
notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
share of each class of
stock.
Price—$11
20
—
dress.
unit.
per
Pro¬
ceeds—For
working capital, etc. Office—206 No. Vir¬
ginia St., Reno, Nev. Underwriter—Senderman & Co.,
address.
October
14
ISSUE
Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock
(par $10) to be
(J. H. Lederer Co.,
$600,000
Fuller
&
Mines, Inc.,
Dillon
Co.)
&
July 22 (Regulation D) 1,000,000 shares of common stock.
Price—30 cents per share. Proceeds—For
exploration and
development expenses, etc. Underwriter—Hudson-Bergen
Securities, Inc., Cliffside Park, N. J.
Amarilla Uranium, Inc.
$300,000
July 27 (letter of notification)
mon
stock.
Price—One
cent
com¬
share.
Underwriter—
Bonbright
B.
Co.)
&
Co.—
Blower
C.
Allyn
&
(Keene
(Bids
&
11
130,000
Inc.)
Inc.)
Co.,
Biyth
Natural
(Bids to
Trans-National Uranium
(Garrett
Brothers,
(Bids
Yellowknife Uranium
(Gearhart
$737,500
United
Co.,
Inc.)
&
be
(White,
(Kidder,
(Merrill
Co.)
<Sz
H.
Crerie
Weld
!
,
Pierce,
Fenner
Common
National
Aircraft
(Offering
to
$8,000,000
Beane)
Preference
stockholders—underwritten
Ripley & Co. Inc.) $24,346,900
11
a.m.
October
19
EDT)
(Bids
11
„_Bonds
Lynch, Pierce, Fenner
Postal
Southern
(Offering
Life
(Offering
&
&
& Beane)
(Offering
Boston
Common
to
Corp.
&
Industries,
(Kidder,
United
(Bids
Debentures
l__Equip.
shares
24
&
(A.
Trust Ctfs.
(Monday)
a.m.
EDT)
1,507,303
Phoenix, Ariz.
common
stock to
be
com¬
Pro¬
and materials and for
Corp.
and
sale
of
the
"grip-lock"
driver
Office—137 Grand St., New York, N. Y.
and
Under¬
by
The
15
O.
Becker
Co.
&
Inc.)
(Tuesday)
approx.
per
to
be
invited)
stock
Uranium
Co., Pueblo, Colo.
share.
1,500,000 shares of non¬
(par 10 cents). Price—20 cents
Proceeds—For expenses incident to mining
Office — 441 Thatcher Bldg., Pueblo, Colo.
common
stock
Common
Co., Denver, Colo.
Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of
I
250,000
Corp., New York, N. Y.
Industries Corp.
Underwriter—Investment Service
$20,000,000
Tel. & Tel. Co
Natural Gas Corp., Aztec, N. Mex.
(letter of notification) 750,000 shares of com¬
stock (par five cents).
Price—40 cents per share.
19
operations.
(Wednesday)
invited;
be
Underwriter—Reynolds & Co., New York.
assessable
First
Bonds
to
Proceeds—To repay bank loans and for working
Bif Chief
approximately
9
$1,500,000 5V2% capital convertible deben¬
Nov. 1, 1970. Price—At 100% and accrued in¬
Sept. 20 (letter of notification)
Common
Forgan & Co.)
1,110,000 shares
(11/1)
filed
(letter of notification) 124,000 shares of com¬
(par 50 cents). Price—$2 per share. Proceeds
—For working capital, etc.
Office — 1424 East Farms
Road, New York City. Underwriter—Jay W. Kaufmann
& Co., New York.
(Wednesday)
Co
Glore,
6
Bassons
mon
shares
stockholders—underwritten
(Bids
stock.
com¬
Price—15 cents per share. Proceeds—For
incident to mining activities.
Cranmer & Co., Denver, Colo.
penses
shares
ex¬
Underwriter
Continued
Debentures
on
page
$30,000,000
$400,000
Inc.)
Nortex Oil & Gas Corp
(Wednesday)
Colohoma Uranium, Inc
Common
Otis,
of
Aug. 24
Debentures
$1,500,000
and
(Bids
New England
International Metals Corp
(Gearhart
Co.,
shares
for
Columbia Securities
(Tuesday)
11
November 16
October
Finance
$6,555,000
EDT)
noon
Public
Proceeds—For expenses incident to oil and gas activities.
Office—109 W. Caco St., Aztec, N. M.
Underwriter—
Common
Marquette Cement Manufacturing Co
$30,000,000
Co,)
111. " Underwriter
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
mon
$1,200,000
Gas Corp
v
(Thursday)
&
Proceeds—For general
N. Y.
mon
Inc
Peabody
share.
Basin
Common
Corp.—
82,500
Co.)
Edison
November
Burlington
(10/25)
subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬
writer—None, sales to be directly by the company or by
Sept.
by A. C. Allyn & Co.) $291,000
Seaboard Air Line RR-
$4
Air
16 filed 78,006,081
offered
Preferred
Common
November
303,407 shares,
.Common
October 20
persons at
★ Banner Life Insurance Co., Brunswick, Ga.
Sept. 23 (letter of notification) 20,000 shares of common
stock
(par $5).
Price—$15 per share.
Proceeds—To
increase capital and surplus.
Underwriter— Reuben
Henry Shipp, St. Simons Island, Ga.
$500,000
Co.)
Co.)
Brothers)
stockholders—bids
Commonwealth
$15,000,000
stockholders—underwritten
to
Noel
November 2
Bonds
Co
Insurance
Noel
Co.
to
by The First Boston
Wertheim & Co.; and Merrill
Lehman Brothers;
Arizona
Sept.
tures due
Common
Automobile Banking Corp
stockholders—underw.itten
to
Corp.1;
of
Lodge, Route 2, Mesa, Ariz. Under¬
Anthony Securities Corp., New York.
Letter subsequently withdrawn.
terest.
(Monday)
Finance
(Reynolds
$8,500,000
New York State Electric & Gas Corp
(Offering
toy
& Gas Corp
EDT)
a.m.
shares
Cinnabar
Desert
capital.
Quaker City Life Insurance Co
(Wednesday)
New York State Electric
—400
-
Corp.__
(Bids
per
Office—Chicago,
★ Automobile Banking Corp.
(Friday)
November 1
County Electric Co
Worcester
2*4
The remaining
Corp., Mesa, Ariz.
Aug. 31 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share.- Proceeds—
To increase capacity of mill
recently constructed. Office
Oct.
Preferred
Class A Common
common
Harriman
28
Alstyne,
Consumers
(Lehman
United
Telephone Co
(Offering to stockholders—underwritten by Lehman Brothers;
Goldman, Sachs & Co.; and The First Boston Corp.) 209,685 shs.
$299,400
Co.)
&
Price—$8
purposes.
Arizona
screw.
$550,000
Debentures & Common
October 31
$17,250,000
&
Inc.)
■'
Debentures
(Cohu
Circuit,
& Co.; Carolina Securities Corp.;
and Stein Eros. & Boyce) $750,000
(Van Alstyne,
Lynch,
and
American Motorists Insurance Co.
v
manufacture
Common
Theatre
National Consumer Finance Corp..
Corp
Polyplastex United, Inc
debentures
Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share.
Proceeds—To set
up a factory and purchase equipment and machinery for
$15,000,000
Indianapolis Power & Light Co
(Tuesday)
Peabody
of
Texas.
Bonds
EDT)
;
Ohio Co.;
(Van
Maid
Bonds
Common
shares
International Resources Fund, Inc.___
Minute
$50
500,000 shares are under option to certain
per share.
Underwriter—None.
$2,500,000
(Wednesday)
a.m.
October
Common
F.
of
stock for each preferred share.
working
capita], etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter
Benjamin & Co., Houston,
$25,000,000
Inc.)
Co
invited)
11:30
Artist
$1,500,000
October 18
Co.,
&
Gas
Continental
The
Debentures
and
basis
ceeds—To purchase dies
Preferred
Tegeler & Co.; William R. Staats & Co.; Rauscher,
Co.; Revel, Miller & Co.; and Russ & Co.) $1,181,250
Southern
$300,000
1,200,000
the
on
(par $1)
(Dempsey,
Pierce
Common
& Oil Corp
Inc.
shares
shares
Corp.
Otis,
&
&
205,000
(Offering to stockholders—underwritten by The
$30,000,000
Inc.)
in¬
Dominick, New-
1, 1975 and 609,193 shares of com¬
to be offered in exchange for out¬
standing 48,530 shares of 6% cumulative preferred stock
stock
Automatic Tool
1
..Common
Co
EDT)
a.m.
Inc.)
Long Island Lighting Co
'
Republic Electronic Industries Corp
Southern Bell Tel. & Tel.
Co.
Pacific Gas & Electric Co
Redondo Tile Co
(Barrett Herrick & Co.,
&
if Atlas Industries, Inc., Houston, Texas
Sept. 28 (letter of notification) 200,000 shares of
mon stock
(par one cent). Price—$1.50 per share.
Common
Magna Theatre Corp
—1
Mining Co
Proceeds—For
Dominick
salesman of the insurance firm.
CALENDAR
—Common
—
(George D.
—
debentures due Oct.
mon
Proceeds—For
activities.
incident to "mining
expenses
6,500,000 shares of
per
Common
,
Petaca
Underwriter
writer—James
October 26
___
Corp.
four shares held. Price
amendment.
American Hide & Leather Co.,
Lowell, Mass.
Sept. 28 filed $2;426,500 of its 5% convertible subordinate
★
Common
Consolidated Freightways, Inc
V
>
(Biyth & Co., Inc.) 100,000 shares
Kordite
by
—None.
Montreal, Canada
Wisconsin
Commonwealth Life Insurance Co
(Eastman,
by
stock (no par)
stockholders on the
common
York.
$299,475
Co.)
of
share for each
supplied
corporate
Alouette Uranium & Copper
Common
D.
new
shares
subscription
—
(Monday)
Chromalloy Corp.
(S.
one
be
for
shares held.
and for contingencies, stock in trade,
working capital. Underwriter—None.
(Probably
October 17
ISSUE
and
Common
Inc. and McGrath Securities Corp.)
REVISED
related activities
share of each class of stock. Price
one
—$11 per unit. Proceeds—For construction of hotel and
(A.
Splendora Film Corp.
ITEMS
Sept. 30 filed 200,000 shares of capital stock (par $3) to
be offered for subscription by stockholders of record
Oct. 25, 1955, on the basis of one new share for each five
offered in units of
Lau
(Friday)
basis of
—To
91,875
offered
common
Weber Investment Co., Ogden, Utah.
NEW
filed
11
be
vestment.
June 27 (letter of
PREVIOUS
if American European Securities Co.
to
borrowings;
repay
exploration and
erties and further
★ Allied-Mission Oil, Inc., Tulsa, Okla.
(letter of notification) 598,800 shares of common
(par one cent). Price—50 cents per share. Proceeds
—For acquisition, exploration,
drilling and development
Oct. 3
pre¬
ferred stock (par $5)
shares
Registration
ADDITIONS
SINCE
•
stock
same
July 29 filed 50,000 shares of 60-cent cumulative
* INDICATES
in
39
(1551)
(General
Hawaii
......Common
Common
Investing Corp.;
$1,250,000
(Territory of)
(Bids
to
be
Bonds
invited)
$7,500,000
-
•
-
(J.
R.
Williston
&
Co.)
200,000
shares
Resistoflex Corp.
'
Preferred
(Bache
&
Co.)
$500,000
November 29
(Bids
October 25
Motorists
American
(Offering
to
Dixon Chemical
(Lee
Higginson Corp.
bonds
Houdry
and
Process
(Paine,
..Common
Co
underwriting)
200,000
shares
& Research, Inc.__Bonds &
and P.
Webber,
W. Brooks & Co., Inc.)
225,000
shares
of
a.m.
Bonds
EDT;
$18,000,000
Com.
Curtis)
40,000
(Bids
to be
(Tuesday)
invited!
December 14
Common
&
December 6
Virginia Electric & Power Co
Preferred
$12,500,000
New York
Boston
i
Pittsburgh
Chicago
$2,250,000
stock
Corp
Jackson
11:30
(Tuesday)
Insurance
stockholders—no
(Tuesday)
San Diego Gas & Electric Co
shares
(Wednesday)
New Jersey Bell Telephone
(Bids to be
invited;
Co
$25,000,000
Debentures
Philadelphia
San Francisco
Private Wires
to
all
offices
Cleveland
—-
40
The Commercial and Financial Chronicle
40
West, Salt Lake City, Utah.
2nd
39
Continued from page
Securities,
Uranium Co., Oklahoma
Black Panther
City, Okla.
500,000 shares of common stock (par 10
cents)
Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah. UnderwriterPorter, Stacy & Co., Houston, Tex., on
best effoits
12 filed
July
basis."
Uranium Corp., Denver, Colo.
Blenwood Mining &
July 29 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 30 cents per share.
Inc.,
if Citizens Credit Corp., Washington, D. C.
2,450 shares of class A common and 490 shares of class
B
&
ren
Co.,
Clad
same
18,949 shares of common
stock (par $1) to be offered for subscription by holders
of voting trust certificates representing
stock of the
Towers Hotel Corp. on a basis of one share for each
share held as of Oct. 6 (with an oversubscription privi¬
(letter of notification)
6
lege); rights to expire on Oct. 31. Price—$7.50 per share.
Proceeds
For lease of Brooklyn Towers Hotel and
—
Industries,
Burlington
(10/20)
Inc.
29
York.
Consumers Corp.,
Sept. 21 filed
offered
be
of
basis
one
Los Angeles, Calif.
52,942 shares of capital stock (par $10)
subscription by stockholders on the
new
share for each share held. Price—
for
share. Proceeds—From sale of stock, together
with other funds, to be used for payment of 5% sinking
fund mortgage bonds due Dec. 1, 1955. Underwriters—
J. S. Strauss & Co. and Lawson, Levy and Williams,
$15
per
both of San
q&if.
Francisco,
Canadian Uranium
Mines, Ltd., Montreal, Canada
June 3 (regulation "D") 2,000,000 shares of common
etock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
Caribou Ranch Corp.,
Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities, '
etc. Underwriter—Mountain States Securities, Inc., Den¬
Colo.
ver,
Cedar
Springs Uranium Co., Moab, Utah
notification) 300,000 shares of common
Price—$1 per share. Proceeds—
For mining expenses.
Underwriter—Universal Invest¬
ment Corp., Washington, D. C.
June 8 (letter of
etock
•
(par five cents).
Central Maine Power Co.
of
held
shares
common
Oct.
for
19.
to
up
$24.37Vz
of
share
new
one
stock for each 6%
on
common
and
stock
share
one
of
for
five
each
new
common
preferred share held; rights to expire
Employees will have the right to subscribe
20,000 of the unsubscribed portion. Price—
share.
Proceeds—For construction program.
Underwriters—Harriman Ripley & Co. Inc.; The First
Boston Corp.; and Coffin & Burr, Inc.
per
if Century Engineers, Inc., Burbank, Calif.
Sept. 30 (letter of notification) 50,000 shares
cumulative
of
5%
convertible
preferred stock to be offered to
employees of the company and its subsidiary. Price—At
par ($3 per share).
Proceeds—For working capital. Of¬
fice
2741 North Naomi St., Burbank, Calif.
Under¬
—
writer—None.
Chaffin
Uranium Corp.,
Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share).
Proceeds — For expenses incident to mining
activities. Office—810 Deseret Building, Salt Lake City,
Underwriter—Utah Securities
Utah.
Co.,
same
City.
•
etc.
and
working
for
capital.
Mountain States Securities Co., Denver,
Colohoma
Uranium,
(11/16)
Inc.,
tion
and
purposes.
New
development expenses and for general
Los Angeles,
Proceeds—To
Aug.
1
Parking Service, Inc..
(letter of notification) 120,000 shares
voting
of
of
non¬
common
shares
be
share.
stock, class A—(par 50 cents) and 60,000
voting common stock, class B (par 10 cents)
offered
in
units
of
class
two
Price—$5 per unit.
(letter of notification) 300,000 shares of common
stock (par 20 cents). Price—$1 per share.
Proceeds—
For oil and mining activities.
Office — 350 Equitable
Underwriter—Birkenmayer & Co.,
A
and
one
class
B
Proceeds—For general work¬
National Bank of Commerce
Co.
Oil
—For
acquisitions and advances to subsidiary (Cuban
Drilling & Exploration Co.) for drilling and
exploration costs. Office—Dallas, Texas. Underwriter—
Dallas Rupe & Son, Inc., Dallas, Texas.
American
1954 and
105,000 shares of series LV
Washington, D. C.
Aug. 20 (tetter of notification) 700,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual
Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
Uranium
Mines, Inc.
July 12 (letter of notification) 15,000,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds—For expenses incident to mining operations.
Office—170 Vista Grand Road, Grand Junction, Colo.
Underwriter
Columbia Securities
Co., "Denver and
Grand Junction, Colo.
—
common
stock
(par
$1), which may be issued pursuant thereto.
Dawn Uranium & Oil Co., Spokane, Wash.
June
16
(letter of notification)
Price
stock.
mon
1,500,000 shares of com¬
Proceeds—For
cents per share.
10
—
exploration.
Office—726 Paulsen Bldg.,
Empire State Bldg., same city.
Deerfield Gas Production
Co., Wichita, Kan.
Sept. 30 this company, together with Kearney Gas Pro¬
duction Co., filed 935,999 units of beneficial interest in
Hugoton Gas Trust, to be made by means of warrants
to be issued to common stockholders of Kansas-Nebraska
—$4
Gas
Co., Inc., and its eligible employees. Price
unit.
per
Proceeds—For retirement of indebtedness
balance for payment of obli¬
secured by first mortgages;
gations and expenses of the two companies in liquida¬
tion and
for liquidation distribution to stockholders.
Underwriters—The First Trust Co., of Lincoln, Neb. and
& Co.,
Cruttenden
Comet Uranium Corp.,
Commercial
American
Sept. 9 filed 2,000,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
Natural
Colorado Oil & Uranuim Corp.
Bldg., Denver, Colo.
same city.
City, Utah.
Cuban
uranium and oil
Calif.
Benjamin B. Smith, who is the
selling stockholder.
Office—11801 W. Olympic Blvd.,
Los Angeles, Calif.
Underwriter—Francis I. duPont &
Co., Los Angeles, Calif.
share).
Lake
corpo¬
Investing Corp.,
York; and Shaiman & Co., Denver, Colo.
of America,
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
chase plan and selected employees' stock option plan of
Underwriters—General
Corp.
par (six cents per share).
Pro¬
mining operations. Office — 1026 Kearns
For
—
if Cutter Laboratories, Berkeley, Calif.
cent). Price—50 cents per share. Proceeds—For explora¬
rate
Price—At
stock.
mon
Oct. 7 filed participations in the corporation's stock pur¬
Montrose, Colo.
April 21 filed 2,500,000 shares of common stock (par one
Delta
Chicago, 111.
Minerals
Casper, Wyo.
Co.,
(letter of notification) 600,000 shares of non¬
assessable common stock (par five cents). Price—50 cents
Sept. 20
Proceeds—Expenses incident to mining oper¬
Office—223 City and County Bldg., Casper, Wyo.
share.
per
ations.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.
Dinosaur Uranium
Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses
incident to mining activities. Office
Exchange Place, Salt Lake City, Utah. Underwriter
—Western States Investment Co., same city.
—15
„
Commonwealth
Credit Corp.,
Dix Uranium Corp.,
Phoenix, Ariz.
Sept. 9 filed 700,000 shares of capital stock (par $1).
Price—$2 per share. Proceeds—For working capital, etc.
Underwriter—None.
•
Commonwealth
Life
Insurance
Co.
(10/17-21)
Aug. 22 (letter of notification) 60,000 shares of common!
stock
Price—$5 per share. Proceeds—To be
stock, unassigned surplus and reserve
for business development and for expansion and life
reserves.
Office—616 South Main St., Tulsa, Okla. Un¬
derwriter—Eastman, Dillon & Co., New York, N. Y.
(par $1).
Community Credit Co., Omaha, Neb.
June 6
(letter of notification) 1,000 shares of 5*£%
cumulative preferred stock.
Price—At par ($100 per
share).
Proceeds—For working capital.
Office—3023
Farnam St., Omaha, Neb. Underwriter—Wachob-Bender
Corp., same city.
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses.
Coeur d'Alene, Idaho.
Office—326 Wiggett Bldg.,
Underwriter—M. A. Cleek, Spo¬
kane, Wash.
Conlon-Moore Corp., Cicero, III.
Aug. 29 (letter of notification) $300,000 of first mortgage
(secured) 5% sinking fund bonds, series A, dated Oct. 1,
1955, to mature Oct. 1, 1967. Price — $100 per bond.
Proceeds—To redeem outstanding first mortgage sinking
fund bonds.
Office—1806 South 52nd Ave., Cicero, 111.
Underwriter—Illinois Securities Co., Joliet, 111.
29
filed
$8,700,000
Corp.
of 15-year
•
Chemical
Dixon
be
Price—To
supplied
of
construction
plant,
Inc.
(10/25) \
amendment. Proceeds—For
for acquisition of Dixon
by
etc.;
Office—Clif¬
Underwriters—Lee Higginson Corp. and P. W.
Co., Inc., both of New York.
Brooks &
Inc., Denver, Colo.
Dome Uranium Mines,
(letter of notification) 1,300,000 shares of com¬
mon stock (par one cent). - Price 20 cents per share. Pro¬
ceeds
For expenses incident to mining operations.
Office—352 Colorado National Bldg., Denver, Colo. Un¬
July 12
—
Hughes & Co., Denver, Colo, and G.
L.
derwriters—R.
W. Allen & Co., Cheyenne,
Wyo.
Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable common stock. Price—At par (one cent per
share).
For expenses -incident to mining
East 5th South, Salt Lake City,
Underwriter—Valley State Brokerage, Inc., Las
Proceeds
Utah.
—
Office—214
activities.
Vegas, Nev.
•
Eastern
Life Insurance Co.
of New York
5V2%
income
de¬
stock
5,239 shares of common
(par $5.50) being offered for subscription by stock¬
debentures and
Price—$35.50
of stock.
Price—$50.50 per
Proceeds—For acquisition of production payments.
unit.
Research,
Chemicals, Inc.; and for working capital.
ton, N. J.
Oct.
holders of record
shares
&
filed $2,250,000 6% first mortgage bonds due
1975 and 225,000 shares of common stock (par $1) to be
offered in units of $500 of bonds and 50 shares of stock.
Sept. 28
bentures due Sept. 1, 1970 and 870,000 shares of common
stock (par 10 cents) to be offered in units of $50 of
five
Provo, Utah
(letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290
North University Ave., Provo, Utah.
Underwriter —
Weber Investment Co., Provo, Utah.
Aug. 10
Sept. 20 (letter of notification)
Continental Production
Aug.
Charleston
to
—
credited to capital
Sept. 16 filed 505,719 shares of common stock (par $10)
being offered for subscription by the holders of common
stock and 6% preferred stock of record Sept. 30 at the
rate
obligations,
Underwriter
June 7
California
to
short-term
Sept. 23 (letter of notification) 27,500 shares of common
stdck (par $1). Price—At market (estimated at $1.75 per
filed $30,000,000 of subordinated debentures
due Oct. 1, 1975. Price—To be supplied by amendment.
Proceeds—To repay bank loans which were obtained for
the purpose of acquiring the stock of Ely & Walker Dry
Goods Co.
Underwriter—Kidder, Peabody & Co., New
Sept.
Co., Inc., New York.
Clad-Rex Steel Co., Denver, Colo.
Aug. 24 filed 400,000 shares of common stock (par 10
cents).
Price—$1.25 per share.
Proceeds—To repay
Color
Underwriter—None.
lyn, N. Y.
(letter of notification)
Uranium Corp.
Cross-Bow
Aug. 29 (letter of notification) 5,000,000 shares of com¬
ceeds
address.
Co., Philadelphia, Pa.
120,000 shares of common
stock (par 25 cents). Price—$2.50 per share. Proceeds—
For equipment and working capital. Underwriter—Bar¬
Office—Clark and Willow Sts., Brook¬
working capital.
.
Thursday, October 13, 1955
..
Cortez Uranium & Mining Co., Denver, Colo.
May 27 (letter of notification) 3,000.000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.
supply
Colo.; and Joseph McManus & Co., New York, N. Y.
Inc.
ic Brooklyn Towers,
Proceeds—To
(Victor V.)
rett Herrick &
Oct.
Price—99%.
stock).
common
capital to subsidiaries. Office—1028 Connecticut Ave.,
N. W., Washington, D. C. Underwriter—Emory S. War¬
Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For expenses incident to mining operations. Office—403 Felt Building, Salt Lake City, Utah. Under¬
writer—J. E. Call & Co., Salt Lake City, Utah.
Bo jo
$24o,000 of 6% subordi¬
(with warrants to purchase
1975
due
debentures
nated
June 17
For expenses incident
—
Underwriter—Denver
Colo.
Denver,
Sept. 27 (letter of notification)
to mining operations.
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
Proceeds
•
.
(1552)
Office—Las
Vegas, Nev. Underwriter—First California
Co., Inc., San Francisco, Calif.
for each 10 shares held;
per
working capital.
1, 1955 at rate of one new share
rights to expire
on
Nov. 15, 1955.
Proceeds—For expansion and
Office—386 Fourth Avenue, New York
share.
16, N. Y. ' Underwriter—None.
.
'
Electro
Refractories
& Abrasives
Corp.
Sept. 27 (letter of notification) 10,000 shares of
stock (no par) to be offered for subscription by
common
one
new
if Chester Telephone Co., Chester, S. C.
Oct. 3
(letter of notification) 5,040 shares of capital
stock (par $10).
Price—$16 per share. Proceeds—For
(par $1), of which 107,915 shares are to be sold
by company and 92,084 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate
purposes.
Underwriter—Central Securities Co., Dallas,
stockholders of record Sept. 30 on the basis of
on
Oct.
retirement
Texas.
Underwriter—None.
ing
Office—505
capital.
Building,
Charleston,
W.
Va.
Underwriter—Crichton
Investment Co., same address.
112
York
of
bank
loan
and
St., Chester, S. C.
stock
working capital.
Office
Underwriter—None.
Cordillera Mining Co., Denver, Colo.
June 8 (letter of notification) 2,995,000 shares of common
com¬
(par 10 cents).
Price—$2.25 per share. Pro¬
equipment, working capital, etc. Office—109
West 64th St., New York 23, N. Y.
Underwriter—S. D.
Fuller & Co., New York.
ceeds—For
Cisco
Uranium
Corp., Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par
one<
Proceeds—For
cent).
mining
Price—Three
expenses, etc.
common
stock
Chromalloy Corp. (10/17-21)
Sept. 29 (letter of notification) 133,100 shares of
mon
Cook Industries, Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of
cents
per
share.
Office—2630 South
share for each
Price
26.
capital.
—
14
shares held;
$16.50
Office
—
per
share.
rights to expire
-
common
Proceeds—For working
344 Delaware Ave., Buffalo 2, N. Y.
if Electronic Micro-Ledger Accounting Corp.
Sept. 28 (letter of notification) 297,000 shares of com¬
stock (par 10 cents), to be offered for subscription
stock.
mon
For
by
Price—At par (10 cents per share). Proceeds—
mining operations. Offices — 738 Majestic Bldg.,
stockholders.
Price—$1
per share.
Proceeds—For
Office—53 State St., Boston,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
general corporate purposes.
Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common stock (par 10
cents). Price—At the market. Proceeds—To a selling
Erie County Investment Co., Sandusky, Ohio
Aug. 10 (letter of notification) 7,500 shares of cumula¬
tive preferred stock (par $20) and 7,500 shares of com¬
mon stock (par $10), to be offered in units of one share
of each.
Price—$35 per unit.
Proceeds—For working
stockholder.
—None.
Office—Corpus Christi, Texas.
Underwriter
Mass.
Underwriter—None.
Volume
Number 5472
182
The Commercial and Financial Chronicle
...
capital to finance general expansion.
Office—169 East
Washington Row, Sandusky, Ohio.
Underwriter — The
First Cleveland Corp., Cleveland, Ohio.
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
ptock (par 50 cents). Price—$1 per share. Proceeds—
For
mining
Salt
Lake
Office—2320
expenses.
South
City, Utah.
Underwriter
Cafarelli Co., Las Vegas, Nev.
—
Main
Eliason,
Street,
Taylor,
Farm
Family Mutual Insurance Co., Albany, N. Y»
June 28 filed $1,500,000 of 5% debentures to be offered
directly to members of the American Farm Bureau
Federation
and
to
State
Farm
Bureau
Federations
and
local organization.
Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws.
Underwriter—None.
be
supplied
by
amendment.
(par
$1).
Proceeds—For
capital improvements and working capital.
Pitt
Underwriter
Packaging International,
Inc.
50,000 shares of five selling stockholders.
of
j
Price—$3
per
Proceeds—For working capital; for exploitation
"Totosave"
system;
and
for
Office—220-14 Horace
N.
Underwriter—None.
Y.
Harding Blvd., Baysiae 64,
Gulf
Coast Leaseholds,
Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept.
1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil
and gas interests.
Underwriter—None.
Half Moon
Uranium Corp., Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17
Army Way, Ogden,
Utah.
Underwriter—United
Intermountain
Brokerage
marketing
Hawk
Lake
of
"Tropic-
Ray" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
convertible
preferred
stock.
Price—At
cu¬
par
($10 per share) and accrued dividends. Proceeds—For
improvements and general corporate purposes.
Office
Ferry Road, Trenton,
N. J.
Underwriter—W.
E. Wetzel & Co., same city.
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,
Omaha, Neb.
*
Freedom
Insurance Co., Berkeley, Calif.
June 6 filed 1,000,000 shares of common stock (par $10).
Price—$22 per share.. Proceeds—For capital and surplus.
Business^-All insurance coverages, except, life, title and
Office—2054
mortgage.
University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
Uni-Insurance Service Corp.
company by
Fremont Uranium Co., Salt Lake City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of
stock.
mon
Price—At
par
(one cent
per
share).
com¬
Pro¬
Sept.
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of
$1,000, $500 and $100). Pro¬
ceeds—For working capital.
Office—837 South Maine
St., Salt Lake City, Utah* Underwriter—Edward L. Bur¬
ton & Co., same city.
"
.
Home Oil
Co., Ltd., Calgary, Canada
Sept. 26 filed 1,500,000 shares'of class A stock and 3,793,231 shares of class B stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock
Salt Lake
City, Utah.
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Gallina Mountain Uranium Corp.
July 29 (letter of notification) 500,000 shares of
stock
(par
cent). 'Price—An
one
Proceeds—For
New
York.
same
mining
of
aggregate
$50,000.
Office—82 Beaver St.,
Prudential Securities Corp.,
address.
—
tal
Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬
(par five cents). Price — 25 cents per share.
stock
Proceeds—For oil
and mining expenses.
Underwriter—
Empire Securities Corp., Las Vegas, Nev.
it General Capital Corp., Miami Springs, Fla.
Oct. 3 (letter of notification) $300,000 of 10 year 8%
debentures.
Price—At par (in denominations of $100,
$500, $1,000 and $5,000). Proceeds — For purchase of
commercial
paper.
Springs, Fla.
Office—4309 N.
W.
36st
St., Miami
Underwriter—None.
General Guaranty Insurance Co.
Aug. 26 (letter of notification) 50,000 shares of common
stock
(par $2.50)
being offered for subscription by
stockholders of record Aug. 25, on the basis of one new
share for each two shares held (with an oversubscrip¬
tion
per
privilege); rights to expire on Oct. 15. Price—$6
Proceeds—To increase capital and paid-in
share.
surplus.
Fla.
Office—130 Park Avenue, North, Winter Park,
Underwriters
Security Associates, Inc., Winter
Park, Fla.; Grimm & Co., New York City; Beil & Hough,
Inc., St. Petersburg, Fla.; and First Florida Investors,
Inc., Orlando,. Fla.
•—*
* General Molded Plastics, Inc., Dallas, Tex.
S£pt. 30 (letteirof notification) 297,500 shares of common
stock
For
(par
one
cent).
acquisition
of
Price—$1
machinery,
per
share.
molding
Proceeds—
equipment
and
working
capital.
las, Tex.
Underwriter—First Securities Co., Dallas, Tex.
Gibraltar
Office—Tower
Petroleum
Bldg., Dal¬
Uranium
Corp., Aurora, Colo.
July 18 (letter of notification) 2.000,000 shares of
of
either
class
A
com¬
stock (par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Con-
nell, Inc., Denver, Colo.
Gob Shops of America, Inc.
July 27 (letter of notification) 99,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For gen¬
.
corporate
•
& Curtis, Boston,
Household
(10/25)
underwriter.
Mass., and New York, N. Y.
per
share.
Underwriters—Lee
Proceeds—To reduce bank loans.
Higginson Corp. and White, Weld &
Co., both of New York; and William Blair & Co., Chi¬
111.
cago,
^Hugoton Gas Trust
Hunt
Uranium Corp., Green River, Utah
(letter of notification) 1,200,000 shares of com¬
Price—At par (25 cents per share).
Pro¬
ceeds—For expenses incident to mining activities.
Un¬
Aug. 22
stock.
mon
derwriter
Salt Lake
it Idea,
Elmer
—
K.
it Great Lakes Oil & Chemical Co.
stockholders
be
general funds.
supplied
through
by
transferable
amendment.
warrants.
Proceeds—For
Office—417 South Hill St., Los Angeles,
Underwriter—None.
Bldg.,
Newhouse
323
Aagaard,
City, Utah.
Inc., Silver Spring,
Price
—
At par
Md.
($1
per
share).
Proceeds
—
For
general corporate purposes. Address—P. O. Box 2, Sil¬
ver
Spring, Md. Name Change — Formerly known as
Lewis Gardens Co.
Indian
stock
mon
Underwriter—None.
Uranium
Monument
(letter of notification)
Sept. 6
Proceeds
Office—205
Mining
one
Byington Building, Reno, Nev. Underwriter
—Richard L.
Dineley,
address.
same
6
it Israel
Oct.
209,686 shares of common stock (no par),
be offered for subscription by stockholders of record
1955
on
the basis of
one
new
share for each 15
shares
held; rights to expire about Nov. 10. Price—To
supplied by amendment. Proceeds—For repayment
be
of bank loans incurred for construction.
Lehman Brothers; Goldman, Sachs &
Boston
Underwriters—
Co.; and The First
Corp.; all of New York City.
Industrial
Hardware
Mfg. Co.
$1,500,000 of 5%
(amendment)
Inland Oil &
July 18
Denver, Colo.
1,200,000 shares of
Price
(par 10 cents).
Proceeds—For expenses
International
Aug.
23
filed
—
200,000
incident to oil and gas activities
Underwriter
"Isras"
Israel-Rassco
in State of Israel
—Tel
Development
Corp*
Investment
Ltd.
Co.,
Independence Issue Bonds only. Office
Aviv, Israel.
Underwriter
—
Rassco Israel
Corp.,
it IXL Uranium Corp., Provo, Utah
Sept. 30 (letter of notification) 1,200,000 shares of non¬
assessable capital stock (par 10 cents).
Price—25 cents
per share.
Proceeds—For expenses incident to mining
operations. Office—298 West Center St., Provo, Utah.
^-Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
activities.
Office
326
—
Underwriter
Colo.
expenses incident to mining
West Montezuma St., Cortex,
Bay Securities Corp., New York,
Proceeds—For
share.
per
—
New Yorit.
"
/
.-
Uranium Corp.,
Kachina
Reno, Nev.
May 12 (letter of notification) 600,000 shares of commoa
stock ("par 10 cents). Price—50 cents per share. Proceed*
-r-For mining expenses. Office—206 N. Virginia St., Reno,;
Nev.
Underwriter—Whitney, Cranmer & Schulder, Inc.,
Denver. Colo.
-
(letter of notification) 7,500 shares of capital
19
(par $25), to be offered to stockholders of record
Sept.
15
held.
Price—$40
new share for each eight
Proceeds—For general cor¬
Office—Title Bldg., Kansas City, Mo.
the basis of
on
per
porate purposes.
one
share.
Kearney Gas Production Co.
See Deerfield Gas,
Production Co. above! J.
^
Kirby Oil & Gas Co.
July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬
and 100,000 shares for the account of the Murchir-
pany
son-Richardson
financial
interests of Texas.
Price—Ta
amendment. Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas*
leases. Underwriters—Allen & Co., New York: and Raube
supplied
by
Fierce
scner,
&
Texas.,
Dallas,
Co.,
.
Offering— Post¬
poned indefinitely.
"
Kordite
Corp., Macedon, N. Y.
(1Q/17)
Sept. 21 filed 130,000 shares of common stock
(par $1),
offered by the company
50,000 shares by Richard M. and Howard J. Samuel3,President and
Vice-President, respectively. Price—To
be supplied by amendment (around $13.75 per shared
Proceeds—To finance development of business and for
general corporate purposes.
Underwriter — George
D. B. Bonbright & Co., Rochester, N. Y.
of which 80,000 shares are to be
Proceeds—For
States.
it Lamson Aircraft Co., Seattle, Wash.
3 (letter of notification) 22,555 shares of
Oct.
stock.
Price—At par ($10 per share).
tirement
ness,
of
short
term
bank
loan
investment.
other
Underwriter—I.
re¬
indebted¬
working capital, and additional cost of Air-Tractor.
Ave., Seattle 4, Wash. Underwriter—
....
.
..
:
v..
Landa Oil
Co., Dallas, Texas
4
Aug. 19 (letter of notification) 70,000 shares of common
stock (par 10 cents) to be first offered for subscription
by stockholders.
Price — To stockholders, $3.50 per
share; find.to public $4.25-per share. Proceeds—For ex-,
penses incident to oil and gas activities.
Office — 5738
North Central Expressway, Dallas 6, Tex. Underwriter—
Central Securities Co., Dallas, Tex.
;
Valley Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
(par two cents).
Price—10 cents per share.
Proceeds—For expenses
incident to mining activitiesOffice—hc/o Warren E. Morgan, President, 1705 East First
Aug. 15
mon
stock
South, Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
•
Business
Blower
(10/25-27)
stock (par $1).
Price
To be supplied by amendment.
Proceeds—To
selling stockholders. Underwriter — A. C. Allyn & Co.,
Lau
filed
4
Ohio
Co., Dayton,
205,200 shares of
common
—
Inc., Chicago, 111.
Leborn Oil
stock.
(par $1).
the free world out¬
Corp., 76 Beaver St., New York, N. Y.
common
Proceeds—For
and
Office—807 Fourth
June 8
Inc., New York
shares of capital stock
invest in foreign securities of
side of the United
ties
com¬
25 cents per share.
Investors
Price—At market.
—To
Mineral
Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
Oct.
Uranium Corp.,
(letter of notification)
stock
&
200,000 shares of common stock (par $25)Price—$27.50 per share. Proceeds—For general corpor¬
ate purposes. Underwriter—Israel Securities Corp., New
Lander
debentures due
(par 50 cents),
of which 85,000 shares are to be sold to Seymour and
Bernard Offerman at $5 per share.
Price—To be sup¬
plied by amendment. Proceeds—To purchase Hugh H
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc. and Weill, Blauner & Co., Inc., both of New York.
May 12
Industrial
filed
5
(10/28)
filed
Oct. 27,
securi¬
Underwriter—Kid¬
field.
der, Peabody & Co., New York.
None,
it Indianapolis Power & Light Co.
Oct.
Corp.
3,000,000 shares of com¬
cent). Price—10 cents per share.
For expenses incident to mining activities.
(par
—
in U. S. and foreign
resources
and
Sept. 30 (letter of notification.) 200,000 shares of class A
stock.
natural
Underwriter—None.
holders of records Sept. 30, 1955 on the basis of one new
share for each 20 shares held; rights to expire on Oct. 17.
Ave., Denver, Colo.
—Shaiman & Co., Denver, Colo.
Sept. 29 (letter of notification) an undetermined number
of shares of common stock (par $1) to be offered to
the
stock
Office—3975 East 58th
as
purposes.
in
Finance
withdrawn
Calif.
B
Corp.
Sept. 9 filed 341,380 shares of common stoqk ($9 stated
value) being offered for subscription'lby common "stock¬
to
Business—To invest
ments.
Sept.
Houdry Process Corp.
mon
common
class
Sept. 22 filed 40,000 shares of capital stock (par $10).
Price—To be supplied by amendment. Proceeds — To
selling stockholder. Underwriter—Paine, Webber, Jack¬
son
(10/18)
Inc.
it Kansas City Title Insurance Co.
Office—Pawtucket, R. I. Un¬
derwriter—Weill, Blauner & Co., Inc., New York, has
Pricee—To
or
1975 and 300,000 shares of common stock
mon
eral
share
one
See Deerfield Gas Production Co, above.
Gas Hills
Aug. 1
of
assets of Federated.
Price—$24
common
expenses.
Underwriter
basis
stock in exchange for each two Federated shares. Stock¬
holders will vote Dec. 6 on approving acquisition of
ceeds—For mining expenses.
Office—515 Deseret Bldg.,
Underwriter — Moab Brokerage
the
on
International Resources Fund,
Sept. 23 filed 3,000,000 shares of common stock (par one
cent). Price—$5.75 per share. Proceeds — For invest¬
Underwriter—None.
Acceptance Corp., Salt Lake City, Utah
(letter of notification) $300,000 of 25-year 6%
1
writer—Gearhart & Otis, Inc., New York.
New York.
Home
Fowler
(par 10
cents). "Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex.
Under¬
York, N. Y.
Co., Trenton, N. 1.
Sept. 26 (letter of notification) 30,000 shares of 5%
—Lower
International Metals Corp. (10/24-28)
4 filed 400,000 shares of common stock
Uranium
Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc.
Underwriter—DoVbs & Co.. N<»w York
City, will act as agents. Statement may be withdrawn.
mulative
41
Oct.
ties
Homasote
June 30 filed 300,000 shares of common stock (par 100),
of which 250,000 shares of for account of company and
share,
—
foods.
•
—Hallowell, Sulzberger & Co., Philadelphia, Pa.
Fort
it Green Castle Corp.
30 (letter of notification) 480 shares of common
(no par).
Price—$50 per share. Proceeds—For
working capital. Business
Sale of natural organic
Sept.
stock
Corp., Ogden, Utah.
it Fischer & Porter Co., Hatboro, Pa.
Oct. 10 filed 60,000 shares of common stock
Price—To
(1553)
& Uranium Co.
6,000,000 shares of capital
(five cents per share). Proceeds—
(letter of notification)
Price—At par
124V2 South Main St,
Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
For
mining expenses. Office
Newcastle, Wyo. Underwriter
—
—
I. I. Securi¬
Continued
on
page
42
92
The Commercial and Financial Chronicle
(1554)
Continued
from
41
page
LeCuno Oil Corp., Jefferson,
Texas
Aug. 29 filed 450,000 shares of capital stock (par 10"
cents). Price—To be supplied by amendment. Proceeds
—For payment of liabilities and expenses incident to oil
and gas and mineral activities. Underwriter—First Cali¬
fornia Co., Inc., San Francisco, Calif.
Offering—Ex¬
pected in October.
Copper Corp., Tucson, Ariz.
Sept. 22 (letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
tunnel and other expenses incident to
a
mining operations.
Ariz.
•
Office—128
N.
Church
St.,
Tucson,
if Mary Douglass International, Inc.
4
(letter of notification) $150,000
Oct.
convertible
$100
Companies, Inc., Richmond, Va.
Sept. 19 filed 418,656 shares of common stock (par $1)
and 4,081 shares of convertible preferred stock
(par $25),
of which
340,000 shares of
stock
common
to
are
be
of¬
publicly; 60,000 shares of common are to be of¬
for subscription by
officers, directors, employees
agents of this corporation, Atlantic Life Insurance
and
Co.,
The
18,656
to
are
Lamar
common
be
Life
offered
and
14
and
the
by company
stock of Atlantic Life
mon
Insurance
shares
shares
on
of
Co., and others; and
4,081 preferred shares
to holders of common
the basis of 64 shares of
preferred
for
com¬
each
outstanding
plus $15. Price—For the 400,000 shares of common stock to be sold to
public and
employees, will be supplied by amendment. Proceeds—
To selling stockholders.
Underwriters—Equitable Se¬
share of Atlantic
common
curities Corp.,
Nashville, Tenn., and Rauscher, Pierce &
Co., Inc., Dallas, Texas. Offering—At time of
going to
press, this was expected momentarily.
Life Underwriters Insurance
Co., Shreveport, La.
Sept. 26 filed 100,000 shares of common stock
(par 25
cents) to be offered for subscription by present stock¬
holders of record July
21, 1955 on the basis of one new
share for each four shares
held; rights to expire 45
days
from
the commencement of the
offering, after which
unsold shares will be offered to
public. Price—$8.75 per
share to
stockholders; $10 per share to public. Proceeds
—For expansion and
working capital.
Underwriter—
None.
holders
on a basis of one
share of common stock for each
shares held as of Sept.
15, 1955; rights to expire on
Nov. 7, 1955. Price—$37
per share. Proceeds—For work¬
27
ing capital.
Office—1342
writer—None.
M
St., Lincoln, Neb.
Under¬
for
each Syntron share. The
exchange will become effective
if 95% of the 24,895 shares
of outstanding
Syntron stock
are deposited for
exchange; but Link-Belt reserves the
right to declare the exchange effective if not
less than
of
The
Syntron
shares
are
so
exchange offer will expire
deposited
on
extended.
in
exchange.
Oct. 19, unless further
Uranium Co.
441
—
capital
East
and
20th
other
St., New
Underwriter—None.
Mines,
Inc.
(letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price — 62% cents per share.
Proceeds—Tor expenses incident to mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
Medical
June
15
Abstracts.
(letter
of
Inc..
PHHs»HAinhia.
notification)
300.000
pa.
shares
com¬
Bliedung, Washington, D. C.
Mesa-Loma Mining Corp., Fort
Collins, Colo.
July 13 (letter of notification) 2,955,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For
incident
to mining operations.
Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New York, N. Y.
expenses
Office—415 Peterson St., Fort
Metallurgical Resources, Inc., New York
Sept. 12 filed 500,000 shares of 6% non-cumulative con¬
preferred stock. Price—At par ($2 per share).
vertible
Proceeds—For
construction
of
plant;
for research and
Underwriter—
development; and for working capital.
M. S. Gerber, Inc., New York.
Minute Maid Corp.
(10/18)
Sept. 28 filed $6,000,000 of 4% subordinated debenturesdue Dec. 1, 1974. Price—To be
supplied by amendment.Proceeds—To Clinton
300,000
said
of
Foods, Inc., who had received $17,-
debentures
in partial payment for the
Crop Division. Underwriters—
Lynch, Pierce, Fenner & Beane, New York;
Newhard, Cook & Co., St. Louis, Mo.
of Clinton's Snow
Merrill
and
Mitchell
Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box
301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Moab Treasure Uranium Corp.
July 25 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—Five cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter —
Utah Uranium Brokers, Salt Lake
City, Utah.
Mobile Uranium & Oil
Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds
For expenses incident to
mining activities. Office—805 Judge Bldg., Salt Lake
—
Long Island Lighting Co. (10/26)
Sept. 27 filed $15,000,000 of first
mortgage bonds, series
H, due 1985. Proceeds—For construction
program and
reduction of bank loans.
Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; The First
Boston Corp. and
Blyth & Co., Inc.
(jointly); W. C. Langley & Co.; Smith,
Barney & CoBaxter, Williams & Co. Bids—Expected to be received at
City Bank Farmers Trust
Co., New York City, up to
11:30 a.m. (EDT) on Oct. 26.
Underwriter—Skyline Securities, Inc., Den¬
Colo.
if Mohawk
Oct. 3
Silica
Co., Cincinnati, Ohio
(letter of notification) 3,000 shares of 8%
lative preferred
stock.
Price
At par
($50
cumu¬
share).
processing plant, heavy equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,.
—
per
Proceeds—For
Ohio.
Underwriter
—
W. E.
Hutton
&
Co., Cincinnati,
Ohio.
Monogram Uranium & Oil Co.
Aug. 31 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. Proceeds
To make payment of
$675,000 to Four Corners Uranium Corp. under a pur¬
—
chase
contract; to use $100,000 each to purchase mining
equipment, to pay for development and driving drift and
for exploratory
drilling; and the remainder for working
capital, acquisition of additional properties, and unfore¬
seen
contingencies. Underwriter—Carr & Co., Detroit,
-
Louisville
Gas
&
Electric
Co.,
Mich.
Ky.
of record Oct.
10 shares
share.
(no par)
stockholders
13
at
the rate of
held; rights to expire
Proceeds
writers—Lehman
York.
one
new
Nov. 1.
on
share for each
Price—$47
For
construction program.
Brothers and Blyth &
—
per
Under¬
Co., Inc., New
Monte
Carlo Uranium
Mines, Inc.
June 6 (letter of notification)
6,000,000 shares of com¬
mon stock.
Price—At par (five cents per
share). Pro¬
ceeds—For miping expenses.
Office
706 Newhouse
Bldg., Salt Lake City, Utah. Underwriter—Mid-Con¬
tinent Securities, Inc.. same
city.
—
-
ic Lucky Stores, Inc., San
Leandro, Calif.
Sept. 30 (letter of notification)
3,100 shares of common
stock (par
$1.25), to be offered to employees pursuant
to Employees' Incentive Stock
Option Plan. Price—$13
per share.
Proceeds
To finance
expanding facilities
and operations. Office
1701 First
Ave., San Leandro,
Calif. Underwriter—None.
Monte Cristo Uranium
Corp.
Aug. 19 filled 2,000,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For purchase of
certain claims designated "Lower Claims
Group." Office
—Salt Lake City, Utah. Underwriter—None.
—
—
Lyman-Farnsworth Corp.
May 6 (letter of notification as
amended) 3,000,000 shares
of capital stock
(par one cent). Price—10 cents per share.
Proceeds—For mining operations.
Office—201 No. Main
St., Salt Lake City, Utah. Underwriter—Pioneer
Invest¬
ments, Las Vegas, Nev.
Morning Sun Uranium, Inc., Spokane, Wash.
14 (letter of
notification) 700,000 shares of com¬
June
mon
stock
(par 10 cents). Price
Proceeds—For mining expenses.
Bldg., Spokane, Wash.
city.
Magna Theatre Corp., New York
(10/26)
Sept. 29 filed 110,000 shares of common stock
(par five
cents) to be offered for subscription
by common stock¬
holders of record
each 20
—To
for
Oct. 26 at
shares held.
the
rate
Price—$5
interest on outstanding
general corporate purposes.
pay
United Artist Theatre
of
per
6%
one
new
share.
debentures, and
Underwriter
—
Circuit, Inc. of New York.
share
Proceeds
The
—
25
Office
cents
—
per
415
share.
Paulsen
Mortgage Associates. Inc., Philadelphia, Pa.
June 7 (letter of
notification) 20,000 shares of 60-cent
convertible
preferred
stock
stock (par $5) and 20,000 shares
(par 10 cents). Price—For preferred,
share; and for common, $2.50 per share. Proceeds
common
$10
per
—For construction loans and
acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope &
Co.,
Scranton, Pa.
Mountain
States
Underwriter—None.
purposes.
if Mutual Trust, Kansas City, Mo.
Oct, 6 filed 500,000 shares of beneficial
Trust.
market.
Price—At
National
Consumer
interest in the
Proceeds—For
Finance
investment.
(10/31-11/4)
Sept. 28 filed 50,000 shares of convertible preferred
stock. Price—At par ($10 per share) and accrued divi¬
dends. Proceeds—To repay bank loans. Office—19 River
St., Stamford, Conn. Underwriter—Van Alstyne, Noel &
Corp.
Co., New York.
National
Consumer
Finance Corp.
(10/31-11/4)
200,000 shares of class A common stock
Price—$6 per share. Proceeds — To selling
Sept. 28 filed
(par $1).
stockholders.
Office
Underwriter—Van
19 River St., Stamford, Conn.
Alstyne, Noel & Co., New York; *
—
if National Security Life Insurance Co. 3 (letter of notification) 299,200 shares of class A
stock and 8,000 shares of class B stock. Price—For class
A stock $1 per share; for class B stock, 10 cents per
share.
Proceeds—For
expenses
incident
to
life
insur¬
Office—4624 North 7th
ance.
St., Phoenix, Ariz. Under¬
writer—None; sales to be made through directors.
Natural Power
Corp. of America, Moab, Utah
notification) 300,000 shares of non¬
assessable common stock (par one cent). Price—$1 per
share.
Proceeds—For expenses incident to mining ac¬
tivities. Underwriter—Western Bond & Share Co., Tulsa,
Sept.
7
(letter
Okla.
of
'
Navajo Cliffs
Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
Ave., Provo, Utah. Underwriter — Lindquist Securities,
Salt Lake City, Utah.
{
Nevada Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
Office—Professional Building, Winnemucca, Nev.
derwriter—Shelley, Roberts & Co., Denver, Colo.
Un¬
New Mexico Copper Corp.
Sept. 8 (letter of notification) $100,000 of 6% convertible
debenture bonds
any
due Oct. 1, 1965 (to be convertible at
time at rate of $100 of bonds for 220 shares of com¬
stock).
Price—At par. Proceeds — For mining ex¬
Office—Carrizozo, N. M«< Underwriter—M. J.
Sabbath Co., Washington, D. C.
mon
penses.
New
Mexico
Oil &
Gas
Co.
(letter of notification) 2,500,000 shares of com¬
mon stock (par one cent). Price—Three cents per
-share.
Proceeds
For general corporate purposes. Office —
Bethesda, Md. Underwriter—Lewellen-Bybee Co., Wash¬
ington, D. C.
July 27
—
New
York
Sept. 28
Price—^$100
and
Business
filed
Development Corp.
10,000 shares of capital stock (no par).
share. Proceeds — For working capital
per
general corporate purposes.
Office—Albany, N. Y.
Underwriter—None.
-Z New York State Electric & Gas Corp. (10/19)
Sept. 21 filed $15,000,000 of first mortgage bonds due
Sept. 1, 1985. Proceeds—To reduce bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. inc.; Kidder, r^eaboay
Co.; Harriman, Ripley & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Blyth & Co.,
Inc. and Smith, Barney & Co. (jointly).
Bids—To be
received up to 11 a.m. (EDT) on Oct. 19., at Room 2017,
61 Broadway, New York 6, N. Y.
&
•
York
New
State Electric
&
Gas
Corp.
(10/19 K
(no par)
stockholders
Sept. 28 filed 303,407 shares of common stock
to
be
offered
for
of record Oct.
18
subscription by common
on
the basis of
one
new
share for each
10 shares held; rights to expire on Nov. 3.
Price—To be
Proceeds—To repay bank loans
construction program. Underwriters—The First
supplied by amendment.
and
for
•
Brothers; Wertheim & Co.; and
Lynch, Pierce, Fenner & Beane.
Corp.; Lehman
Merrill
Corp., Dallas (10/24-28)
1
stock (par $1).
supplied by amendment.
Proceeds—To
purchase certain oil and gas properties and leasehold
interests; for drilling and development costs; to pay off
$450,000 promissory notes; and for general corporate
purposes. Underwriter—J. R. Williston & Co., New York.
Nortex
Oil
& Gas
Sept.-16 filed 200,000 shares of common
Price—To
be
Oasis
Uranium & Oil Corp., Fort Worth, Texas
(letter of notification) 265,000 shares of common
(par 50 cents). Price—$1 per share. Proceeds—
June 8
stock
For uranium and oil exploration.
Office—Fortune Arms
Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
Underwriter—Pennaluna & Co.,
same
of
for
eral corporate
Boston
Sept. 22 filed 160,000 shares of common stock
being offered for subscription by common
Thursday, October 13, 1955
Oct.
of
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western
Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
ver,
Sept. 12 (letter of notification)
3,000,000 shares of capi¬
tal stock. Price—At
par (10 cents per share).
Proceeds
—For mining expenses.
Office—440 West 3rd
North, Salt
Lake City, Utah.
Underwriter—Skyline Securities, Inc.,
Denver, Colo.
•
working
Office
Aug. 1
City, Utah.
Little Mac
of 20-year 6%
(in denominations of
Spokane, Wash.
Link-Belt Co., Chicago, III,
Aug. 12 filed 134,433 shares of common stock
(par $5)
being offered in exchange for the common stock of
Syntron Co. at rate of 5.4 shares of Link-Belt stock
80%
Proceeds—For
par
.
held; rights to expire on Oct. 28. Price—At par ($100
per share.
Proceeds — Toward repayment of advances
Telephone & Telegraph Co. and for gen¬
•
Mascot
assets
• Lincoln Telephone & Telegraph
Co., Lincoln, Neb.
Oct. 3 (letter of
notification) 7,128 shares of common
stock (par
$16.66%) to be offered to common stock¬
Price—At
purposes.
York, N. Y.
fered
fered
each).
corporate
Underwriter—George F. Breen, New York, N. Y.
Life
bonds.
.
from American
•
Lewisohn
ceeds—To drive
Market Basket, Los Angeles, Calif.
Sept. 21 filed 75,940 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—For new equipment and other general corporate pur¬
poses.
Underwriters—Bateman, Eichler & Co. and Wil¬
liam R. Staats & Co., both of Los Angeles, Calif.; and
First California Co., San Fraicisco, Calif.—Offering—
Was expected yesterday (Oct. 12).
.
Telephone & Telegraph Co.
Sept. 7 filed 486,881 shares of capital stock (par $100),
being offered for subscription by stockholders of record
Sept. 27, 1955 on the basis of one new share for each five
if Old Elm Club, Fort Sheridan, III.
(letter of notification) $125,000 of debentures
dated Nov. 1, 1955. Price—At par.
Proceeds—For new
Sept. 30
water
Old
distribution
Elm
system for golf course. Office—800
Road, Fort Sheridan, 111. Underwriter—None.
if Oneida Heater Co., Inc., One:da, N. Y.
6 (letter of notification) $250,000 of
25-year 5Y2%
debentures due Nov. 1, 1980 and
50,000 shares of class
A common stock (par $1).
Price—At par. Proceeds—
To redeem $144,GOO
outstanding bonds and $24,575 pre¬
Oct.
ferred
stock
for working capital.
Underwriters—
Investing Co.,- Inc., Utica, N. Y.; and
Security & Bond Co., Lexington, N. Y.
Mohawk
and
Valley
^Volume
182
Number 5472
.
;
The Commercial and Financial
Chronicle
.
(1555)
Ottilia
Aug.
Villa, Inc., Las Vegas, Nev.
•
16
(letter of notification) 3,000 shares of
capital
par ($100 per share).
Proceeds—For
South 5th St., Las
Vegas, Nev. Underwriter—Hennon &
Roberts, Las Vegas, Nev.
stock.
Price—At
..
.
Pacific Gas &
'Oct. 4 filed
Electric Co.
Postal
1,000,000 shares of redeemable first preferred
(par $25). Price—To be supplied
by amendment.
Proceeds—To retire short term bank loans and
.stock
for
con¬
struction program.
Underwriter—To be filed by amend¬
ment (may be
Blyth & Co., Inc., San Francisco and New
York).
Pacific
International Metals &
Uranium, Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon
stock. Price—At par (one cent
per share).
Pro¬
ceeds—For expenses incident to
mining activities. Office
Judge Bldg., Salt Lake City, Utah. Underwriter—
Guss Securities
Co., Salt Lake
Insurance
Co.
(10/19-21)
145,500 shares of capital stock, of which
100,000 shares are to be offered for subscription by stock¬
holders of
record
shares
new
about
(10/25)
Life
Sept. 29 filed
30
account
for
18
each
days,
of
Oct.
and
two
to
Oct. 20
share
held;
45,500
the rate
at
rights
shares
selling stockholders.
to
to
are
of two
expire
be
sold
in
for
Price—At
par ($2
capital and other
general corporate purposes. Underwriter—A. C.
Allyn
& Co., Inc., Chicago, 111. and New
York, N. Y.
share).
per
Proceeds—For
working
★ Pottermill Co-Op., Inc., East
Leverpool, Ohio
Sept. 29 (letter of notification) 1,500 shares of preferred
stock.
Price—At par ($100 per
share).
Proceeds—To
be placed in trust fund for use in
purchasing property.
Office—138 W. Sixth St.,
EastXeverpool, Ohio.
Under¬
writer—None.
.;
<
•
Pacific Uranium & Oil
Corp.
(letter of notification)
-June 6
3,000,000 shares of com¬
Price—10 cents per share.
stock
mon
(par two cents).
For mining expenses. Office
811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.
Proceeds
—
—
Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per
share). Proceeds—For
swimming pool, club furnishings and * equipment, golf
course and organization and develoment
expense. Office
—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
Paul
Getty, President.
Underwriter—None.
Paddock Of California, Los
Angeles, Calif.
Sept. 28 (letter of notification) 60,000 shares of common
stock
(par $1).
Price—$5
per
share.
Proceeds
—
For
liquidation of bank loan
and working capital.
Office—
Blvd., Los Angeles, Calif. Underwriter
T. R. Peirsol &
Co., Beverly Hills, Calif.
8400 Santa Monica
Panama Minerals, Inc., S. A.
j;
(Republic of
Oct.
400,000 shares of
common
stock
(par $1).
Pandora Uranium
Minfes, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock (par one
cent). Price
10 cents per share.
—
^Proceeds—For
expenses
incident
to
mining
operations.
Office—530 Main St., Groad
Junction, Colo. Underwriter
—Columbia Securities Co., Denver
2, Colo, and Salt"
Lake City, Utah.
Pelican Uranium Corp., Salt Lake
City, Utah May 25 (letter of notification) 300,000 shares of common
; stock (par five cents).
Price—10 cents per share. Pro¬
ceeds— For
mining expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter
TransWestern Brokerage Co., New
—
Orleans,
Lake
La.,
and
Salt
City, Utah.
Inc., Oxford, Pa.
Sept. 30 (letter of notification) 11,538 shares of $1.50
cumulative preferred
stock
(par $22.40)
and
11,538
shares of common stock (par $1) to be offered in
units
of one share of each class of stock
(8,533 units to public
3,COO units to employees). Price—To public $26 per
unit; and to employees $23.40 per unit. Proceeds—For
expansion of system and working capital. Office—45 S.
Third St., Oxford, Pa. Underwriters—James
A. Leavens,
and
Inc., Shamokin, Pa.; and Theron D. Conrad
bury, Pa.
&
Co., Sun-
Insurance
Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par three cents). Price—15 cents per share.
Proceeds—For expenses incident to
mining activities.
Office—206 N. Virginia
Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
Pepsi-Cola Bottling Co. of Long Island, Inc.
Sept. 20 filed 300,000 shares of common stock (par 25
cents), of which 80,000 shares are for account of com¬
and
pany
220,000
shares
Arundel, President.
ment.
for
Price—To
Proceeds—To retire
corporate purposes.
account
be
of
supplied
Russell
by
M.
amend¬
indebtedness; and for general
Office—Garden City, N. Y.
Under¬
writer—Johnston, Lemon & Co., Washington, D. C.
N.
Mex.
Underwriter
Corp., Salt Lake City, Utah.
querque,
Petaca
Aug.
25
Mining Co.
filed
450,000
—
Western
Securities
Co.
N.
M.
Price—$1.75
shares, of
per
Underwriter—Barrett
Herrick
York.
.
.
•
&
Co., Inc., New
•
•
.
»
-fa Pine Street Fund, Inc., New York
Oct. 6 filed 75,000 shares of common
stock (par $1).
Price—At market. Proceeds—For investment.
Pittman
Drilling & Oil Co.., Independence,; Kan.
Sept. 6 (letter of notification) 60,000 shares cf 6%
non-j
cumulative preferred
of
common
stock
stock (par $5) and 60,000 shares
(par 10 cents) to be offered in units of
share of each. Price—$5 per unit.
Proceeds—For
payment of note and working capital. Office—420
Citi-j
National Bank Bldg.,
Independence, Kan. Under¬
writer—Dewitt Investment Co.,
Wilmington, Del.
one
zens
* Polypfastex United, Inc.
Oct.
5
(letter
of
notification)
(10
18-21)
99,800 shares of class A/
Price—$3 per share. Proceeds—
For expansion program and
working capital. Office—
441 Madison
Ave., New York 22, N. Y. Underwriter—i
Cohu & Co., New York.
stock
(par 20
cents).
(letter of notification) 20,000 shares of common
(par $1) to be first offered to stockholders. Pricfc
—$6.25 per share. Proceeds — For oil and mineral and
stock
related activities.
Office—Northwood, Iowa. Underwriter
—None.
,
San Jacinto
Petroleum
Corp., Houston, Texas
Sept. 20 filed 500,000 shares of common stock (par $1).
Price—$15 per share. Proceeds—For payment of short
ceeds
privately through officers of the
San
Juan
Inc., Puerto Rico*
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
Sept.
For
Estate
14
Clearing House, Inc.
of notification) 270,000
(letter
(par $1)
shares
of
7%
and
135,000 shares
(par five cents) to be offered in units
of preferred and one share of common
of common stock
of
two
shares
stock.
Price—$2.05
per
unit.
Proceeds—For working
Office—161 West 54th Street, New York,
N. Y.
Underwriter—Choice Securities
Corp., 35 East
12th Street, New York, N. Y.
capital, etc.
i( Redondo Tile Co.,
Redondo Beach, Calif.
Oct. 5 filed $875,000 of 5%%
due
stock
common
tal
sinking fund
1, 1970, and 306,250 shares of
(par $1), to be offered in units of $500
unit.
per
bank
subordinated
Oct.
of debentures and
$675
175 shares of
Proceeds—For
stock.
common
retirement
of
Price—
short-term
indebtedness; balance for additional working capi¬
and
general
corporate
Underwriters
purposes.
—
Tegeler & Co., St. Louis, Mo.; William R.
Co., Los Angeles, Calif.; Rauscher, Pierce &
Co., Inc., Dallas, Tex.; Revel, Miller & Co., Los Angeles,
Calif.; Russ & Co., San Antonio, Tex.
Staats
&
Reliance Electric &
Sept. 30
Engineering Co.
(letter of notification)
ber of shares of
common
an
undetermined
num¬
stock
(par $5), to be offered to
employees pursuant to employees' stock option plan.
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes. Office—1088 Ivanhoe Road,
Cleveland, Ohio.
Underwriter—None.
Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30
I
filed 150,000 units in
procurement
agreement
a dividend trust and stock
be offered to certain mem¬
to
bers of the general public who are acceptable
applicants
are to become active
policyholders in the com¬
and who
Price—$2
pany.
per
unit.
Proceeds—For
general cor¬
be offered by
porate purposes.
Underwriter—None; to
Rich, Robert Kissel and Sidney M. Gilberg,
Leo
as
Trus¬
tees.
•
Republic Electronic Industries Corp. (19/17-21)
Sept. 26 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
.For expansion and
turers of precision
&
West 27th
basis; and (2)
1955, on a two-for-one
public offering of 3,000,000 shares, to be
a
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
derwriter—None.
Hyman N.
City, is Vice-President.
Glickstein, of New York
San Juan Uranium
Exploration, Inc.
(letter of notification) 925,000 shares of non¬
common stock (par one
cent). Price—12 cents
share. Proceeds—For expenses incident to
Aug.
19
assessable
per
mining
Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
activities.
Office
718
—
Sandia Mining & Development
Corp.
Sept 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds
For
mining expenses. Office
Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
—
—
Santa Fe Uranium & Oil
Co., Inc.
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations.
do/26)
•debentures,
to be made in two parts: (1) an
offering, at
share, of 200,000 shares for subscription by
are
stockholders of record April
30,
—
cumulative preferred stock
working capital.
electronic
Business—Manufac¬
test equipment.
St.. New York City.
company.
Racing Association,
50 cents per
(par
expenses incident to mining operations.
Office—Bryant Bldg., Montrose, Colo. UnderwritersGeneral Investing Corp., New
York, N. Y., and Shaiman
& Co., Denver, Colo.
—
indebtedness; and for general cor¬
Underwriter—None, sales to be made
porate purposes.
stock
Radium Hill Uranium,
Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock (par one cent).
Price—32 cents per share. Pro¬
Office—
Underwriter—Keene
Co., Inc., New York, N. Y.
Office—416 Indepen¬
dence
Bldg., Colorado Springs, Colo.
lumbia Securities Co., Denver, Colo.
Underwriter—Co¬
,
Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds
For
—
prepayment of outstanding 5V?.% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer—Barrett Herrick & Co.,
Shenandoah
Inc., New York City.
Gas
Co., Lynchburg, Va.
Sept. 19 (letter of notification) 1,000 shares of common
stock (par $1). Price—$7 per share. Proceeds—To James
L. Carter,
President, who is the selling stockholder.
Office—315 Krise Bldg., Lynchburg, Va.
UnderwriterScott, Horner & Mason, Inc., Lynchburg, Va.
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses. Office — 6 Kirby
St.,
June 20
Moab, Utah.
Underwriter—Skyline Securities Inc., Den¬
Colo.
ver,
Silvaire
June
'mon
17
Aircraft &
Uranium
Co.
(letter of notification) 3,000,000-shares of
[Stock (par
cent).
Price—10 cents
com-
share).
Proceeds—For mining operations. Office—Fort
Collins,
Colo.
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
Denver, Colo
©
Sinclair
Sept.
Oil
filed
23
one
per
Corp.
200,200
shares
of
stock, to be
employees of the
company and of certain of its subsidiaries pursuant to
options granted on April 14, 1954, under the company's
amended stock purchase and option plans.
The options
are
exercisable on or after Oct. 14.
Price—$41.25 per
offered
to
certain
officers
and
common
other
share.
'•
Resistoflex Corp.,
Belleville, N. J.
(10/24)
Sept. 27 filed 20,000 shares of convertible preferred stock
(par $25). Price—To be supplied by amendment. Pro¬
ceeds
For
—
plant at
(10/17-21)
Saint Anne's Oil Production Co.
May 9
(10/31)
capital
leasehold
improvements,
equipment
and
other expenses in connection with the leasing of a new
common stock
(par 10
share. Proceeds—For repayment.,
of loan and liquidation of
purchase obligations; to buy
equipment; and for working capital. Office—Santa' Fe,
cents).
of
$10).
be supplied by amendment..
Proceeds
To
selling stockholders. Underwriter—Lehman Bro¬
thers, New York.
31
Permian Basin Uranium
Corp.
June 2 (letter of
notification) 640,000 shares of common
stock.
Price—At par (10 cents per
share). Proceeds—
For mining costs.
Office—613 Simms Building, Albu¬
•
shares
Price—To
Penn-Utah
Aug. 4
:
82,500
Dempsey,
Penn Fuel Gas,
,
filed
Real
Price—$1.25 per share. Proceeds—For mining expenses.
,Office— Denver, Colo. Underwriter—None.
>
10
certain
Panama)
June 30 filed
(par five cents). Price—At market (total not to
$150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake
City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.
ferings
Quaker City Life
-
Pacific Western Oil Corp.
*Sept. 9 filed 100,000 shares of common stock
(par $4.)
Price—At prevailing market price. Proceeds—To J.
common
stock
exceed
term loans and other
—419
City, Utah.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of
43
Roseland, N. J.
Underwriter
Bache
—
&
Co.,
New York.
Smith-Dietrich
Corp.
Sept. 15 (letter of notification) 17,355 shares of common
stock
(par $2.50)
being offered for subscription by
stockholders of record Sept. 14, 1955 on the basis of one
new share for each five shares held; rights to expire on
Oct.
20.
Price—$5.50
share.
Proceeds—To
working capital.
Office
per
certain
'•
Sept. 14 filed 195,312 shares of common sock (par $10)
being offered for subscription by common stockholders
of record
four
$18
Oct. 6
on
the basis of
one
new
share for each
shares
per
new
held; rights to expire on Oct. 24. Price—
share. Proceeds—To repay bank loans and for
construction.
Underwriter—The First Boston
Corp.,
loans
Church
Rochester Telephone Corp.
St., New York, N. Y.
and
Mining Corp., Salt Lake City, Utah '
(letter of notification) 6,000,000 shares of cap¬
ital stock (par one cent).
Price—Five cents per share.
Proceeds—For
mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
ca
Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.
* Rogers Corp., Rogers, Conn.
Oct. 3 (letter of notification) a minimum of 5,883 shares
and
stock
a
maximum
to
be
of
offered
7,453
to
shares
Proceeds—To
of
stockholders
share for each four shares held.
replenish
sustained in recent flood.
class
on
a
B
Price—($29
working
capital
common
basis
per
due
Underwriter—None
to
.
of
one
share).
50
Proceeds—For general
operating purposes. Underwriters
& Co., Fayetteville, N. C., and Gordon Meeka
Co., Memphis, Tenn.
—Powell
&
Southeastern
Rocket
repay
—
Underwriter—None.
Southeastern Fund, Columbia, S. C.
Sept. 6 filed $300,000 of 15-year 5V2% subordinated sink¬
ing fund debentures. Price—100% of principal amount.
New York.
July 15
for
Underwriters
—
Powell
Gordon Meeks &
Southern Bell
Co.
Sept.
15,
.V
Fund, Columbia, S. C.
Sept. 6 filed 60,000 shares of
Price—$5 per share. Proceeds
—
stock
(par $1).
For working capital.
common
&
Co., Fayetteville, N. C., and
Co., Memphis, Tenn.
Telephone & Telegraph
(10/17)
28
1995.
American
filed
$30,000,000 40-year
debentures
due
Oct.
Proceeds — To repay advances from parent,
Telephone & Telegraph Co., and for general
corporate purposes. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co.
Inc.; Morgan Stanley & Co.
Bids—To be received
losses
Continued
on
page
44
The Commercial and Financial Chronicle
44
Continued
to
up
Thursday, October 13, 1955
11
(EDT)
a.m.
on
(letter of notification) 300,000 shares of non¬
assessable common stock.
Price—At par ($1 per share).
Proceeds—For mining expenses.
Office—Virginia Truck
Oct. 17, at Room 2315,
195
Sept.
mon
—For
England
New
by
ceeds—For
construction.
new
Southern Co.
rants
Underwriter—None.
stock
& Co.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
(jointly); Blyth &
St., Denver, Colo. Underwriter
Jaquith, Inc., same city.
Tennessee
June 20
Co.; Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane. Bids — Tentatively scheduled
to be received up to 11 a.m. (EDT) on Nov. 1.
Texas Adams Oil Co.,
i
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Franklin Securities Co.,
England Telephone Co.
1955 in the ratio of one new share for each
rights to expire on Oct. 28. Price
28,
(par 10 cents).
Price—75 cents per share.
Pro¬
selling stockholders.
Office—39 Broadway,
Underwriter—Philip Gordon & Co.,
Y.
York, N.
Texas
(letter of notification) 600,000 shares of com¬
(par 10 cents).
Price—50 cents per share.
incident to oil activities. Office
Proceeds—For expenses
—Republic National Bank Bldg., Dallas, Texas. Under¬
writer—Watt Securities
Co., Inc., 42 Broadway, New
Texas Toy Co., Houston, Texas
July 8 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For
share.
Proceeds—To repay advances from
American Telephone & Telegraph Co. (owner of about
expansion and working capital.
per
Underwriter—None. Blyth
& Co., Inc., on Oct. 6 won award of 1,173,690 rights to
subscribe for 130,410 of the afore mentioned shares, and
reoffered them to the public at $41 per share.
These
22%
of outstanding
stock).
shares
represented rights
phone & Telegraph Co.
received
Southwestern Financial
by American Tele¬
Price—To be supplied by
machinery and
equipment; and for the working capital and general
corporate purposes. Office—Dallas, Texas. Underwriter
—Rauscher, Pierce & Co., Dallas, Texas; and Russ & Co.,
San Antonio, Texas.
oversubscription privilege).
Proceeds—For purchase of
Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For
incident to mining activities. Office—
Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.
.i*
expenses
1507-8th Street,
Splendora Film Corp., New York (10/14)
July 27 filed 1,200,000 shares of common stock (par 10
cents). Price—50 cents per share. Proceeds—For equip¬
ment and accessories; for financing film productions;
and for working capital.
Underwriters—J. H. Lederer
Co., Inc., and McGrath Securities Corp., both of New
•
York.
Statement effective
Oct.
10.
Sulphur, Inc., Houston, Texas
Aug. 24 filed 400,000 shares of common stock (par one
cent). Price — $1 per share. Proceeds — To purchase
lease; to drill three exploratory wells; for exploration
In the Isthmus of Tehuantepec, Vera Cruz, Mexico; and
for
general
corporate
purposes.
it Summit Springs Uranium Corp., Rapid City, S. D.
(letter of notification) 1,200,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For expenses incident to mining operations.
Office—
Harney Hotel, Rapid City, S. D.
Underwriter—Morris
Brickley, same address.
Oct. 3
Sunburst
Sept. 6
Corp., Salt Lake City, Utah
(letter of notification)
assessable
cents
Uranium
per
common
share.
stock
2,750,000 shares of non¬
two cents). Price—10
(par
Proceeds —For
expenses
incident
to
mining activities.
City, Utah.
of
Utah,
Office—116 Atlas Building, Salt Lake
Underwriter—Mid America Securities, Inc.
same
City.
Price—At
working capital.
sades, Calif.
par
($20
per
share).
common
Proceeds—For
Office—875 Via de la Paz, Pacific Pali¬
Underwriter—None.
Co., Denver, Colo.
(letter of notification) 5,960,000 shares of com¬
stock
Price—Five cents per share.
Proceeds—For mining expenses.
Office — 407 Denver
National Bldg., Denver, Colo. Underwriter—Floyd Kosmon
Co.,
(par
same
Thunderbird
one
cent).
address.
Uranium Corp.
June 9 (letter of notification) 3,000,000 shares
stock. Price—At par (10 cents per share).
of common
Proceeds—
For mining expenses.
Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
Denver, Colo.
For mining expenses.
Office — Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
Union Gulf Oil & Mining Corp.
Sept. 9 (letter of notification) 600,000 shares
(par
Corp.
Office
Dallas, Tex.
Inc., Dallas, Tex.
—
Underwriter
—
(10/17)
Garrett Brothers,
cjebentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
in units consisting of
$1,000 of debentures and 100
common
ceeds—For
stock.
Price—$1,010
per
same
city.
Co., Houston, Texas
July 12 (letter of notification) 61,393 shares of com¬
mon stock (no par).
Price—$1.25 per share. Proceeds—
To reduce bank loans, and for development costs and
other
corporate
purposes.
United Aircraft Corp.
Underwriter—Mickle & Co.,
unit.
(10/18)
243,469 shares of convertible preference
stock (par $100) to be offered for subscription by com¬
mon
stockholders of record Oct. 18, 1955 on the basis
Sept.
filed
27
preference share for each 20 shares of common
held; rights to expire on Nov. 1.
Price — Not
be
less
than
par
value. Proceeds — For general
one
to
corporate
Co.
Underwriter—Harriman
purposes.
Ripley
Pro¬
&
Inc., New York.
United American Investment Co., Atlanta, Ga.
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
balance to be used to engage in mortgage loan business
and related fields.
Underwriter—None.
.
it United Cities Utilities Co., Chicago, III.
28 (letter of notification) 30,000 shares of 5%%
preferred convertible stock. Price—At par
Sept.
cumulative
($10 per share).
Proceeds — To reimburse treasury.
Underwriter—First California Co., San Francisco, Calif.
it United Fire & Casualty Co., Cedar Rapids, Iowa
Sept. 23 (letter of notification) 2,800 shares of 6% con¬
vertible preferred stock class B.
Price—At par ($100
per share).
Proceeds—For licensing purposes in order
to operate in other jurisdictions. Office—810 First Ave.,
N. E., Cedar Rapids, Iowa. Underwriter—None.
it United Gas Corp. (11/9)
11 filed $20,000,000 of first mortgage and collateral
trust bonds due 1975.
Proceeds—To finance expendi¬
Oct.
of
company
and
subsidiary;
purchase additional
for gen¬
corporate purposes. Underwriter — To be deter¬
mined by competitive bidding.
Probable bidders: Haleral
sey,
Stuart & Co. Inc.; The First Boston
Corp.; Morgan
Stanley & Co.; White, Weld & Co. and Equitable Secu¬
rities Corp. (jointly); Harriman Ripley & Co. Inc. and
Goldman, Sachs & Co.
received
vertible
of
Underwriter—Honnold & Co.,
Union of Texas Oil
securities of Escambia Bay Chemical Corp. and
it Traveler Publishing Co., Inc., Philadelphia, Pa.
Sept. 29 (letter of notification) $247,000 of 5V2% con¬
shares
offcommon
10
Denver, Colo.
tures
Trans-National Uranium & Oil
July 1 filed 1,200,000 shares of common stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
on
(jointly).
Bids—Expected to be
Nov. 9.
United States Thorium Corp.
(letter of notification) 250,000 shares of capital
($1 per share). Proceeds—For gen¬
July 21
stock. Price—At par
eral
corporate purposes.
Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.
Universal Service Corp., Inc.,
Houston, Texas
lishment of additional offices;
expansion, estab¬
professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
July 8 filed 500,000 shares of" common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
writer—Albert C.
corporate
payment of indebtedness,
Schenkosky, Wichita, Kansas.
Travelfares, Inc., Seattle, Wash.
14 (letter of notification) 100,000 shares of non¬
assessable common stock. Price—At par ($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.
Sept.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of
stock.
Price—At
par
(50 cents
per
Tri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
15
Washington
&
St., Tucson, Ariz.
Co., Miami, Fla.
Underwriter—Frank
Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
12-year registered subordinated sinMnc fund de¬
bentures. dated Sept. 1, 1955 (with stock purchase war¬
of 6%
rants).
Price—At
par
(in
denominations of $iuO each
other
Offering —
ment, mining costs, oil and gas development, and
purposes.
Underwriter
—
None.
Postponed.
Uranium
Properties,
June 13 filed $600,000 of
In amounts
to be
for
of
invested
equipment
Ltd., Virginia City, Nev.
Grubstake Loans to be offered
$25 or multiple thereof.
in U.
Proceeds—75%
the balance
and development ex¬
Offering—Postponed.
S. Savings bonds and
and exploration
Underwriter—None.
penses.
common
share). Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
L. Edenfield
it Sunset Liquors, Pacific Palisades, Calif.
Sept. 29 (letter of notification) 1,750 shares of
stock.
Texas Western Oil & Uranium
ter &
Corp.
Sept. 6 filed 770,000 shares of common stock (par 10
cents), to be offered for subscription by stockholders at
rate of two new shares for each share held (with an
amendment.
payment .of accounts payable of operating company;
Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,
Inc., Houston.
June 15
Lake City, Utah
stock
stock
mon
U-Kan Uranium & Oil Co., Salt
of
Producing Co., Inc., Dallas, Texas
Oil
Sept. 22
Underwriter—Empire Secu¬
Las Vegas, Nev.
rities Corp.,
(letter of notification) 66,600 shares of common
Aug. 11
stock
nine shares then held;
—$33
Uranium Corp., Salt Lake City, Utah
i,
(letter of notification) 5,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining costs.
Office—406 Judge Build¬
Houston, Texas.
York, N. Y.
Sept. 21 filed 543,209 shares of capital stock (par $25)
being offered for subscription by stockholders of record
Sept.
Inc., New York, N. Y.
Inc., New York, N. Y.
14
New
9,200 shares of common
ceeds—To
New
stock
Southern
Life & Service Insurance Co.
(letter of notification)
capital for agency expansion. Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M street, Bedford, Ind.
Milling Co., Atlanta, Ga.
—
Ucon
cents). Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—510 Colorado Bldg.,
working
Boyce, Baltimore, Md.
Underwriter
Western
—
June 2
stock
holders.
it
Phoenix, Ariz.
Atlanta, Ga.
Carroll, Kirchner &
—
(par $5) to be offered for subscription by stock¬
Price—$30 per share. Proceeds—+To increase
stock
Oct. 6 filed
Sept.
Co., Denver, Colo.
Tasha Oil & Uranium
&
mon
City, Utah. Underwriter
Co., Tulsa, Okla.
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
Bldg.,
May 11
Co., Inc., Bear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬
ties Corp. (jointly); Lehman Brothers; Morgan Stanley
Southern Mining &
Salt Lake
Place,
States Investment
Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State Bldg., Spokane, Wash.
of
Southern Continental Telephone Co. (10/26-27)
30,000 shares of 5%% cumulative preferred
stock.
Price—At par ($25 per share).
Proceeds—For
capital expenditures. Underwriters—White, Weld & Co.,
New York; Carolina
Securities Corp., Raleigh, N. C.;
The Ohio Company, Columbus, Ohio; and Stein Bros. &
Jay Uranium Co., Salt Lake City, Utah
ing, Salt Lake City, Utah.
Paulsen
Underwriter — To be determined
by competitive bidding.
Probable bidders: The First
Boston Corp., Ladenburg, Thalmann & Co., Carl M. Loeb,
and Wertheim
Two
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
(letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.
Proceeds — For mining expenses.
Office — 726
Proceeds—To repay
additional
Wash.
Target Uranium Co., Spokane,
Aug. 12
subsidiary companies.
Co.
Underwriter—Skyline Securities,
Inc., Denver, Colo.
by company on Oct. 31.
loans and for investment in
I Rhoades &
Utah.
Salt Lake City,
(11/1)
be named
bank
notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining operations.
Office—605 Judge Bldg.,
stock
held; rights to expire on Nov. 22; War¬
expected to be mailed on Nov. 2. Price—To
are
Uranium Co.
Sweetwater
12 shares
each
Utah.
Sept. 9 (letter of
filed
30
Utah.
Lake City,
1,507,303 shares of common stock (par
$5) to be offered for subscription by common stockhold¬
ers of record Nov. 1
on the basis of one new share for
Sept.
incident to mining activities. Office—
Underwriter—Honnold & Co., Inc., Salt
expenses
Moab,
owns
now
Drilling & Exploration Co.
(letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
Aug. 17
Electric System, the parent,
27,928 shares (91.965%) of the out¬
standing shares and has offered to purchase the hold¬
ings of all minority stockholders at $25 per share (in¬
cluding 2,256 shares or 7.43% owned by New England
Gas & Electric Association. The balance of the shares is
held by 11 holders. Price—At par ($25 per share). Pro¬
chased
which
June 8
stock
Swank Uranium
subscription by minority stock¬
holders on the basis of one new share for each two
shares held.
An additional 13,964 shares will be pur¬
offered for
be
to
Underwriter—Coombs & Co.
Nev.
Nev.
of Las Vegas,
1,220 shares of capital
(letter of notification)
19
stock
Tungsten Mountain Mining Co., Fallon, Nev.
(letter of notification) 149,800 shares of common
(par $1). Price—$1.50 per share. Proceeds—For
mining operations. Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
.
Bldg., Carson City,
Berkshire Power & Electric Co.
Southern
11
Aug.
multiples thereof). Proceeds—To refinance and dis¬
charge secured obligation.
Underwriter — McDonald,
Evans & Co., Kansas City, Mo.
or
Carson City, Nev.
B. Uranium Corp.,
Susan
from page 43
Broadway, New York, N. Y.
•
...
(1556)
Uranium Technicians
Corp.
(letter of notification) 30,000,000 shares of
common
stock
(no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
June
30
—
State
St., Salt Lake City, Utah.
Underwriter—Ackerson-Hackett Investment Co., same city.
Utah-Arizona Uranium,
Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
Price—50 cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah.
Underwriter—•
Trans-Western Brokerage Co., New Orleans, La.
stock
(par 16% cents).
Utah
Aug. 15
stock.
Grank, Inc., Reno, Nev.
(letter of notification) 270,000 shares of capital
Price—At par ($1 per share).
Proceeds—For ex-
Volume
182
Number
5472
.
.
.
The Commercial and Financial Chronicle
(1557)
incident to mining activities. Office—312 ByingBldg., Reno, Nev.
Underwriter—Lester L. LaFor-
penses
& Co.
ton
omon
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Sal¬
& Co., Inc. (jointly);
& Burr, Inc.; Kidder, Peabody &
Co., Blyth &
Co., Inc. and White, Weld & Co. (jointly); Blair & Co.
Incorporated and Baxter, Williams & Co. (jointly); The
First Boston Corp.
Bids—To be received up to 11 a.m.
(EDT) on Oct. 18 at 441 Stuart St., Boston 16, Mass.
tune, Las Vegas, Nev.
Utah Southern
Uranium Co., Las
Vegas, Nev.
June 6 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share).
Proceeds—
For
mining
Vegas, Nev.
city.
Office—210 N. Third St., Las
Underwriter—Lester L. LaFortune, same
expenses.
Utore Uranium & Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of
mon
stock
(par
com¬
Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen
Uranium
;
Brokerage, Salt Lake City, Utah.
' Vanura
v;
.
stockholders.
•
and
rities Inc., Denver, Colo.
Wabash Uranium Corp., Moab, Utah
|
June 10 (letter of notification) 10,000,000 shares of capi¬
tal stock.
Price—At par (three cents per share).
Pro¬
ceeds—For
mining
Underwriter—Moab
expenses.
Yellowknife
Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses, incident to
mining activities. Office — 718 Title Guarantee Bldg.,
York Oil & Uranium Co.
Co., Pitts¬
June 3
(letter of notification) 10,000,000 shares of capi¬
Price—At par (two cents per share). Proceeds
—For mining and oil activities.
Address—P. O. Box
348, Newcastle, Wyo. Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
tal stock.
outstanding stock of Elmark Corp., which owns garden
apartment development. Office—129 S. State St., Dover,
Underwriter—Real Estate Associates
Journal
Zenith-Utah Uranium Corp.
Sept. 14 (letter of notification) 6,000,000 shares off class
A common stock. Price—At par (five cents). Proceeds
—For mining expenses.
Office—45 East Broadway, Salt
Plan, Inc., 14
Square, Jersey City, N. J.
Lake
+ Weymouth Light & Power Co., Weymouth, Mass.
Oct. 4 (letter of notification)
100 shares of common
stock
(par $24).
Price—$42 per share. Proceeds—For
payment of portion of short-term note indebtedness.
Office—Jackson Square, Weymouth,-Mass.
Underwriter
"
—None.
Uranium, Inc., Salt Lake City, Utah
June 9 (letter of notification) 2,900,000 shares of capital
stock (par Zxk cents).
Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth
West St., Salt Lake City, Utah.
Underwriter—J. W.
Hicks & Co., Inc., Denver, Colo.
Wicker-Baldwin
Uranium
Atlas
Natural
Gas
Co.
small
25.
Wisconsin
Southern
the
on
^shares held.
of
basis
one
new
each
for
share
five
Price—$16.50 to stockholders; and $17.50 to
Proceeds—To repay bank loans and for exten¬
Office—235 Broad
sions and improvements to property.
St., Lake Geneva, Wis. Underwriters—The Milwaukee
'Co., Milwaukee, Wis.;; and Harley, Haydon & Co., Inc.
^and Bell & Farrell, Inc., both of Madison, Wis.
Letter
-to be withdrawn. Full registration probably to be filed
in
one
three weeks
to
fered to stockholders
covering 20,819 shares to be of¬
on
one-for-four basis.
a
Wolfson Uranium
Corp., Denver, Colo.
notification) 150,000 shares of non¬
common stock." Price—At par ($1 per share).
Proceeds—For expenses incident to mining activities.
Sept.
7
(not
than
more
75,000
Underwriters—Probably Union
Smith, Barney & Co., both of New
York.
the basis of
Price
and
-
(letter
of
Boston
announced that stockholders
approving
a
plan
on
Oct.
20
principal
amount of series B 5% income debenture bonds (plus
5% interest for the year 1955) in exchange for each
on
Office—800 Denver Club Building, Denver, Colo. Under¬
writer—Seligmann & Co., Milwaukee, Wis.
Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock
Proceeds
(par
—
For
one
cent).
expenses
Price—10 cents per share.
incident to mining activities.
Office—414
Denver Nat'l Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.
Under¬
of
corporate
structure,
Underwriter
etc.
Straus, Blosser & McDowell, Chicago, 111.
—
to
offer $105
r Chicago, Rock Island & Pacific Ry.
Sept. 29 the company sought ICC approval of an issue
of $2,952,000 equipment trust certificates due in l-to-12
•
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
1985.
Proceeds—For
r^nctrUftir>n.
payment
Underwriter—To
competitive bidding.
of
bank
be
Probable bidders:
loans
determined
Halsey,
and
by
Stuart
shares
one
named
new
of
III.
•
Sept. 28 it
about
record
Nov.
1
from
the
share for each 15 shares held.
was
current
year.
&
Co., New
"
■
.
,
*
company
common
account
plans early registra¬
stock, of which 50,000
of
company and
certain
selling stock¬
Hemphill, Noyes & Co
N'cw
—
;
Power
was
&
Light Co.
announced company
repay bank loans
program, wnich includes two plants
which will cost
approximately $40,000,000. Underwriters
—To be determined
by competitive bidding. Probable
bidders: (1) For
bonds—Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and Salomon
Bros. & Hutzler
(jointly):
Lehman Brothers; Union
Securities Corp.; The First
^P^n Corp. and Blyth & Co., Inc. (jointly); White,
Weld & Co. and Shields &
Co. (jointly); Merrill
Lynch,
Pierce, Fenner. & Beane and Kidder,
Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
(which
may be first offered to
stockholders)—W. C.
Langley & Co. and Union Securities Corp.
(jointly)-;
Kidder, Peabody & Co. and Merrill Lynch,
Pierce,
Fenner & Beane
(jointly); Carl M. Loeb, Rhoades &
Co.;
Blyth
&
Co.,
Inc.
and
The
First
Boston
Corp.
(joint¬
stock—Blyth
& Co., Inc. and The First Boston
Corp. (jointly); White,
Weld
&
Co.
and
Shields & Co.
(jointly); Lehman
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co.
(jointly); White, Weld & Co.
ly):
Lehman
10
it
Brothers.
was
Expected
at
Higginson
both
(3)
reported
around
Corp.
Shields & Co.
and
On
preferred
that this
Mont
it
10
$8
and
of New York
Du
C.
E.
tories,
dividend,
offered
of
to
Co.
announced
Unterberg, Towbin
944,422
its
that
&
Co.,
shares
that
years
B.
of
Du
Mont Labora¬
common
additional
stockholders.
Kuhn, Loeb
some
corporation, following
of Allen
This
& Co.
handled Du Mont
nancing
Price—-
Underwriters—Lee
City.
contemplates
derwritten.
plans early
stock.
Broadcasting Corp.
was
Inc.
company
common
share.
-per
issuance to stockholders
stock
shares
offering will
Van
and
as
will
be
a
be
un¬
Alstyne, Noel
Laboratories class A stock fi¬
Stockholders
ago.
of
Laboratories
Oct. 10 approved formation of
Broadcasting firm.
on
Essex County Electric Co.
July 18 it
reported company plans to issue and sell
was
additional first mortgage bonds. Underwriter—To
Halsey, Stuart & Co. Inc.; The First' Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
First National
of New York,
company
Inc.
expects
Proceeds—For construction
Stuart
&
Co.
Inc.;
Bank,
Dallas, Texas
announced stockholders
was
were
to vote Oct.
approving the offering to-stockholders
of
record
5, 1955, the right to subscribe for 200,000 additional
shares of capital stock (par $10) on the basis of one new
for each
shares
10
held.
Price
—
$30 per share.
Proceeds—To increase capital and surplus.
Florida Power
April 14 it
between
bonds.
was
Corp.
.
announced company may issue and sell
$10,000,000 and
Underwriters—To
$12,000,000
of
first
be determined by
bidding. Probable bidders: Halsey,
&
Stuart
mortgage
competitive
&
Co.
Inc.;
Beane
to
program.
Morgan
Corp.
Ford
Sept.
Offering—Expected late in 1955
Motor
19
it
non-voting
be
sell
(jointly); Lehman Brothers and Blyth &
(jointly); Glore, Forgan & Co.; and The First
or
early
1956.
and
announced
Halsey,
on
share
Price—To be
Underwriter—To be determined by competitive bidding.
bidders:
;;
,r
for the account of the
^d for construction
Boston
to
$40,000,000 to $50,000,000 bonds some' time during
Probable
/
financing early in 1956. Proceeds—To
right
the
before Nov. 16 for approximately 1,110,shares of common stock on the basis
Co., both of New York.
it
record
plans to sell by midDecember $10,000,000 of bonds and
$5,000,000 of preferred
stock and also
expects to undertake some common
stock
Co., Inc.
later.
14
' 1
for
-
.
.
Delaware
(11/2)
its com¬
Proceeds—For construction program. Un¬
derwriters—The First Boston Corp. and Glore, Forgan
&
of
Proceeds
Underwriter
York.
ner
Co., Chicago,
Consolidated Edison Co.
County Electric Co. (10/18)
Sept. 13 filed $8,500,000 of first mortgage bonds, series D,
r>pw
or
additional
June
Worcester
due
on
Edison
announced that plans to offer to
stockholders
mon
of
was
Jersey)
stockholders
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
Hutzler; Kidder, Peabody & Co.
Commonwealth
(New
its
Underwriter—Hayden, Stone
o?rAn«are,
125,000
holders.
Oct.
Oct. 10 it
acquisitions
& Co., Inc.,
share for each four shares
held.
To increase capital
new
share.
175,000 shares of
Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about
150,000 shares of common stock will be registered with
the
SEC.
Business—Company, recently formed,, is a
copper mining undertaking on Merrill Island, Quebec,
Canada.
Underwriter-^Allen & Co., New York. Offer¬
ing—Not expected for three or four weeks.
Offering—To
be withdrawn.
of
5
000
revision
tion
be issued.
Bros. &
Co.
to
Craig Systems, Inc.
Sept. 26 it was reported
Sept. 14 it
mon
one
per
surplus.
outstanding 274,597 shares of 5% preferred stock
(par $100). Not in excess of $28,784,564 of bonds would
subscribe
Woods Oil & Gas Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
.
of the
years.
Wonder Mountain
For
—
be determined by competitive
bidding. Probable bidders:
Maine RR.
was
assessable
I
$28
some
&
Sept. 15 it
vote
offered
Steel
Corp.
Sept. 12 it was reported that early registration is ex¬
pected of $8,000,000 of subordinated debentures due 1970.
Proceeds—Together with funds from private sale of $3,000,000 of notes or debentures, to be used for general
corporate purposes. Underwriter—Lee Higginson Corp.,
will
Proceeds
Underwriter—Blyth
York.*;* ' " k"' ' "
&
Barium
Gas
Co., Inc.
16,654 shares of common
stock (par $10), to be offered for subscription by stock¬
public.
stock
New York.
Aug. 31 (letter of notification)
holders
common
Secuirties Corp. and
improvements; and to reimburse treasury for capital
expenditures already made. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co.
Inc ; The First Boston Corp. and
Robert W. Baird & Co. Bids—Expected to be received
•
of
amount
shares) early next year.
(10/25)
and
Oct.
L.
B.
stock.
common
equipment.
the
Aug.
City Electric Co.
England, President, announced that the
directors are now considering the sale to the public of a
Oct. 4 filed $2,500,000 of first mortgage bonds due 1980.
Proceeds—To repay bank loans; for property additions
on
was
Atlantic
1,
Inc.
company
6, 1955 the right to subscribe on or before Oct. 26
for 45,000 additional shares of
capital stock (par $10)
on
Co., New York.
Aug.
that
Oct.
Oct.
Proceeds—To increase inventory and to retire subsidiary
indebtedness.
Underwriter—May be Van Alstyne, Noel
&
reported
Bank
7
Loan
9, 1956.
registration of 150,000 shares of
announced company plans to issue and
sell additional debentures and subordinated debentures.
Mining Co.
Bank
granted company
^ Diners Club, Inc.
Plywood Corp.
Sept. 28 it
May 26 (letter of notification) 900,000 shares of common
stock. Price—At par (25 cents per share). Proceeds—
For mining expenses. Office—616 Sixth St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same city.
Wisconsin
Underwriter—Bel-Air Securities Corp.,
Prospective Offerings
White Horse
t
City, Utah.
city.
same
i
„
(10/17-21)
other
Washington REAP, Inc., Dover, Del.
Aug. 30 (letter of notification) 400 shares of common
stock. Price — $500 per share. Proceeds — To purchase
Del.
Uranium Corp.
corp.
were
Freightways,
was
Bank & Trust
i
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York City.
Warrior
&
Uranium Co.
Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
Bro¬
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.
Birmingham, Ala. Underwriter—Graham
burgh, Pa. and Birmingham, Ala.
Circle
July 22 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds— For mining expenses.
Office —223 Petroleum
Building, Salt Lake City, Utah. Underwriter—Morgan
& Co., same city.
Oct.
Oct.
.
Yellow
& Drilling Co., Monticello, Utah
(letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
to
run
• County
Uranium, Inc., Salt Lake City, Utah
Uranium
of
boston
(10/17)
has applied to
authority to issue and sell 100,000 additional
it
new
nrst
New York and San Francisco.
—
Vas
21
shares
prevailing price, but not less than $2 per share.
auxiliary equipment for Cody plant, for
acquisition of additional site, and related activities.
June 20
to
the ICC for
Proceeds—For
Wyton Oil & Gas Co.,: Newcastle, Wyo.!; '
.V /
Jiinq 16 (letter of notification) 3,000,000 shares of com- v
Sept. 29 filed 254,000 shares of common stock (par $1).
raon stock (par one
cent). Price — 10 cents per shapef,*/
Price—At the market. Proceeds—To August Buschmann,
Proceeds
For mining expenses. Underwriter — I. J. '
of Seattle, Wash., and members of his
family. Under¬
Schenin & Co., New York. Name Change—The company
writer—None.
was formerly known as San Miguel
Uranium, Inc.
4
ine
totaling $100,000,000
Consolidated
Sept.
Price—On the over-the-counter market at
: r
Oct.
on
then
...
CO.;
Bank loans,
Wyoming-Gulf Sulphur Corp.
Oct.
10 filed
971,000 shares of capital stock (par 10
cents), of which 700,000 shares are for company's ac¬
count and
271,000 shares for account of two selling
cent).
one
oidiuey
Bros. & Hutzler and Stroud
Coffin
45
Nov.
the
reported
common
15.
bulk
Foundation.
the
Co., Detroit, Mich.
was
It
of
is
said
was
public
offering of
class A
is expected between Oct.
that
3,089,908
Price—In
offering price
a
stock
the
shares
stock
now
to
be
sold
15
will
held by the Ford
March last, it was reported
that
expected to be around $60 per
share.
Continued
on
page
46
46
The Commercial and Financial Chronicle
(1558)
Continued from page
Gulf States Utilities Co.
May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit. Underwriter—To be determined by competitive
bidders: Halsey, Stuart & Co. Inc.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros.
& Hutzler and Union Securities Corp. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
•
Hawaii (Territory of)
(11/16)
Sept. 12 it was announced that it is planned to sell
an issue of $7,500,000
20-year general obligation bonds.
Proceeds—For school construction. Bids—To be received
on Nov. 16 at Bankers Trust Co., New Yorkj N. Y.
& Co.
(Walter E.)
Heller
July 18 it was reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.
Gas & Oil Corp.
(Texas)
Houston
approximately $110,-
Rouge, La., to Cutler, Fla., to cost
382,000. It plans to issue and sell $81,200,000 of bonds,
about $20,000,000 of 5Vz% interim notes (convertible into
preferred stock), and over $8,700,000 of common stock.
Stock would be sold, together with the notes, in units.
Underwriters—Discussions are reported to be going on
Scharff
Co., Inc., San Francisco, Calif., and
Inc., New Orleans, La.
with Blyth &
& Jones,
Kayser (Julius) & Co.
Aug. 17, it as announced company plans an offering of
stock to its shareholders and borrowing through longProceeds
loans.
bank
term
—
finance acquisition,
To
through purchase, of the net current assets of Holeproof
Hosiery Co. (latter's stockholders approved proposal
on
Sept. 6).
Laclede Gas Co.
plans sale of about $10,000,000 convertible first preferred stock to stockholders.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner
(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated. Bids—Probably
Aug. 8 it was stated company
Lanolin Plus,
about 200,000
to be changed
registration of
stock (par for selling
shares of common
stockholders).
Cement Manufacturing
Marquette
(11/15)
Co.
Sept. 30, W. A. Wecker, President, announced that the
company plans to make a public offering of approxi¬
mately 250,000 shares of new $4 par value common stock
about the middle of November. Proceeds—To finance a
expansion program. Under¬
$16,000,000
portion of its
*
Michigan Consolidated
sell this
Pro¬
$27,000,000 of first mortgage bonds due 1985.
bank loans and for new construction.
repay
Underwriter—To be determined by competitive bidding.
Halsey,
bidders:
Probable
Lehman
and
Co.
&
Stuart
Inc.;
White,
(jointly);
Smith,
Co.
&
Brothers
Barney & Co. and Blyth & Co., Inc. (jointly);
Harriman
Ripley & Co. Inc. and Union Securities Corp. (jointly).
England Telephone & Telegraph Co. (11/15)
Riter
competitive bidding
repay
temporary borrowings.
termined by
sey,
Proceeds—To
Underwriter—To be de¬
competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; Glore, Forgan & Co.
received
be
on
Nov.
Bids—Expected to
15.
$7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.- Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. an# Glore,/For¬
gan & Co. (jointly); Kidder, Peabody & Co.; TJie-FirstBoston Corp.; Smith, Barney & Co.; Harriman Ripley
(12/14)
of several million dollars."
a
in
the
five
next
Webster
sell $25,000,000 of new debentures due 1955.
expansion program.
Underwriter
competitive bidding.
—
Proceeds—
To
be
deter¬
Probable bidders:
Hal¬
Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Shields & Co.; Kuhn, Loeb & Co.; White,
Bids—Expected to be received
Dec. 14.
on
New York Telephone Co.
new
Keith S. McHugh, President, announced that
sion
capital
and
money
be
improvement
determined
$100,000,000
to aid in carrying out its
program
proximately $200,000,000.
to
10 it
by
which
will
expan¬
cost
ap¬
Underwriter—For any bonds,
competitive
bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
r
.
Halsey, Stuart & Co. Inc., is
to meet
are
authorized
$10),
convertible into common)
Proceeds—For working capi¬
issue of 500,000 shares of first preferred stock (par
of which 300,000 shares (to be
to be publicly offered.
are
,
tal.
Office—Buffalo, N. Y.
Texas Gas Transmission Co.
March
re¬
it
15
reported company plans to sell addi-
was
tional first mortgage bonds later to finance cost of new
$17,500,000.
which is estimated at about
construction,
Oct. 20.
on
1
June 6 the stockholders voted to approve an
,
Stockholders
was
Sterling Precision Instrument Corp.
to bid for approximately $25,000,-
a group
Underwriter—Dillon, Read & Co. Inc., New York.
Pure Oil Co.
United Insurance Co. of America,
April 9, stockholders approved the possible issuance of
a
convertible debenture
issue.
This would not
Oct.
3 it
directors
time within the next 12 months.
any
stock.
common
Wis.
Underwriters—May be R.
Dickson &
S.
(12/6)-
Virginia Electric & Power Co.
sell
and
Milwaukee,
that company plans to issue
announced
was
125,000 shares of cumulative
preferred
stock
program.
Un¬
Proceeds—For construction
(par $100).
.
derwriter—To
Radio
Corp. of America
To
—
Underwriters
increase
—
financial
of
resources
April 25 it
*
in
Oct.
National
stockholders
5
rights to
Bank
record
of
subscribe for
of
Oct.
Dallas
4,
capital stock (par $12) at the rate of
each
shares
12
(Texas)
1955
additional
an
one
held; rights to expire
on
shares
new
to
of
Oct. 24.
Underwriters—Walker, Austin & Waggoner,
The
Rupe & Son, all of Dal¬
stock (par $1).
Underwriter—Cruttenden &
stockholders
subscribe
on
l-for-7 basis.
Price—$8
building program
jloses.
or
stock
common
record
Price—$5
one
per
before
per
Oct.
received
31
for
the
on
was
—
Expected in
corporate
approved
plan
a
authorizing the
additional 128,597 shares of common stock
the
par
value of the common shares from
The plan calls for the
stockholder of the right to purchase
each
share for each six shares of stock now
common
was
announced Sinclair Oil Corp. has agreed
of Westpan
Sinclair may
SEC
purr
to
Dec.
stock
(52.8%).
The time in which
sell their holdings has been extended by
21,
1955.
Underwriter—Union
Securities
Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co.
Diego Gas & Electric. Co.
Aug. 2 it
new
shares
a
Underwriter—None.
San
Underwriter—East¬
-Offering
with the SEC to divest itself of its investment of 384,380
52,300
to stockholders
general
19.
Sept.
Westpan Hydrocarbon Co.
share. Proceeds—To further
and for
expected to bo
pipe line scheduled
share to no par value.
March 2 it
22
on
are
new
on
owned, regardless of class.
Co., Chicago, 111.
Sept.
(par $2)
per
Offering to
Rye, N. Y.
of
an
and changing
reported early registration is planned of
common
FPC
stockholders
10
issuance of
\5j>100
was
Hearings
Dillon & Co., New York.
Oct.
<
-^Richland Homes, Inc., Richland, Ind.
share.
begin before
Bonds
and stock.
of notes
October.
sur¬
plus.
10 it
plans to issuo
now
if Western Maryland Ry.
Proceeds—To increase capital and
140,000 shares of
Co., Ltd;
company
Price
per
Oct.
(11/29)
White, Weld &
Co., New York, may be included among the bidders.
reported company plans to issue and sell
"
"
York County
Gas Co., York, Pa.
$18,000,000 of 30-year first mortgage bonds due 1985. Pro¬
June
issuance and sale later this year of a new series
bank loans and for
repay
Probable
Bros.
Corp.
&
bidders:
Hutzler;
Lehman
construction.
competitive bidding.
Halsey, Stuart & Co.
Blyth & Co.,
Merrill
and
(jointly);
new
Inc.;
Lynch,
Pierce,
Brothers;
The
Inc.; Salomon
Union
Fenner
First
Sequrities
&
Boston
White, Weld & Co. and Shields & Co. (jointly).
Expected
Nov. 29.
to
be
received
up
to
11:30
a.m.
Corp.;
publicly about $20,000,000 of securities, probably
units
man,
share for
—$45
share.
reported
was
placed privately.
given
were
187,500
Securities
Webster
&
Westcoast Transmission
company.
and sell
Republic
Stone
competitive bidding.
by
Merrill; Lynch, Pierce, Fenner & Beane.
Lehman Brothers and Lazard Freres &
Co., both of New York.
determined
be
bidders:
Probable
Sept. 2 the directors discussed the advisability of issuing
the
for selling
shares is expected, partly
400,000
Aug. 2 it
covering 10,000 shares of its
Underwriter—Loewi & Co.,
Chicago, III.
offering of from 350,000
cago, 111.
reported company expects to file a letter
was
an
/Co., Charlotte, N. C., and A. C. Allyn & Co., Inc., Chi¬
if Racine Hydraulics & Machinery Co.
Oct. 4 it
to
stockholders.
Under¬
writer—Probably Smith, Barney & Co., New York.
of notification with the SEC
reported that
was
exceed
$50,000,000 and would be issued at the discretion of the
Underwriters—To be determined by
the company will have to raise more than
of
Southern" Nevada Telephone Co.
Get.
ceeds—To
Registration—Planned for Nov. 18.
17,
^
/
Corp., The First Boston Corp. and
Smith, Barney & Co.
to
Jan.
common stock financing was
by Hunter Securities Corp., New York, who
it is stated/will not underwrite the new preferred issue.
Underwriters—Probably Stone &
years.
Securities
right
Weld & Co.
Underwriter—Previous
handled
The company has scheduled
large-scale expansion program, involving $79,000,000
order to keep abreast of estimated load growth over
shares of
Commission for authority to issue and
convertible
Francisco, Calif.
New Jersey P. U.
Boston Corp.;
etc.
authorized
issuance of 110,000
preferred stock (par
Proceeds—For exploration and drilling program,
cumulative
Puget Sound Power & Light Co.
April o, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
purposes from outside sources—at least to the extent
Sept. 30 it was announced company has petitioned the
sey,
$10).
stockholders
of
reported company may be planning some
public financing. Underwriter—Dean Witter & Co., San
27
mined by
30
shares
Co. Inc.
Sept.
For
Aug.
sale of
Rye National Bank,
Jersey Bell Telephone Co.
New
geles, Calif.
South Texas Oil & Gas Co.
las, Texas.
debentures.
be received up to noon
of Willkie Owen Farr
office
company plans the
sale of additional common stock (par $1) and bank bor¬
rowings to finance the proposed purchase of all of the
outstanding stock of Holly Manufacturing Co. of Pasa¬
dena, Calif., for $3,000,000 cash. The transaction must be
closed by Dec. 15, 1955 (subject to extension to Jan. 15,
1956). Underwriter—William R. Staats & Co., Los An¬
Pennsylvania Electric Co.
Feb. 21 it was reported company proposes issuance and
sell
36-year
»■
,
Inc.
Sept. 20 it was announced company plans to issue and
of
.
,
(10/20)
Siegler Corp., Chicago, III.
Sept. 20 it was announced that the
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
First Southwest Co. and Dallas
$30,000,000
to
15 Broad
seK
year $9,300,000 of first mortgage bonds. Pro¬
repay bank loans ahd for new construction
Underwriter—To be determined by
indebtedness
(EDT) on Oct. 20, at
Gallagher & Walton,
St., New York 5, N. Y., for the purchase from
the railroad company of $6,555,000 equipment trust cer¬
tificates, series P, to be dated Nov. 1, 1955 and to mature
in 15 equal annual instalments. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kid¬
der, Peabody & Co..
the
reported company plau*;tft.:i«8ue «nd
was
later this
ceeds
Gas Co.
Aug. 15 it was reported company may issue and
ceeds—To
-Bids will
Pennsylvania Electric Co.
Feb. 15 it
authorized
10,000,000 shares
$150,000,000 from
Proceeds—For expansion program.
Seaboard Air Line RR.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and
& Co. (jointly); Glore, Forgan & Co.
authorized
$50,000,000.
$100,000,000 of subordinated convertible debentures. Pro¬
writer—A. G. Becker & Co. Inc., Chicago, 111.
New
'
proposals to increase the
stock to 40,000,000 shares from
the
and
share
Inc., Cleveland, Ohio
June 9 it was announced that company plans soon to
file a registration statement with the SEC covering a
proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purposes.
UnderwriterGeorge A. Searight, New York, will head group,
Lithium Developments,
Weld
will
new
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co
000 of bonds.
Inc.
Aug. 15 it was reported company (name
from Consolidated Cosmetics, Inc.) plans
fall
1955
tor
ments
approved
common
capital require¬
approximate $31,000,000. Present
it was announced that
March 29
holders
(Minn.)
Power Co.
States
ported to head
fall.
this
Northern
ceeds—To
Aug. 26, company applied to the FPC for authority to
construct a 961-mile pipe line from a point near Baton
Kidder, Peabody & Co.
Inc.; Salomon Bros. & Hutzler;
Probable
bidding.
Probable bidders: Halsey, Stuart & Co.
trust certificates.
Thursday, October 13, 1955
.
Scott Paper Co.
^Sept. 20, Thomas B. McCabe, President, announced a
major financing program will probably be undertaken
by next spring. No decision has yet been reached as
to the precise type/amount or date of
financing.' Stock¬
if Northern Pacific Ry.
Sept. 30 it was reported that the company plans the
issue and sale late in November of $1,755,000 equipment
45
.
.
29
it
was
announced
company
determined.
and
Proceeds—To
probably to refund
an
mortgage bonds due 1978.
mined by competitive bidding.
on
sey,
for
pay
new
construction
issue of $560,000 4%% first
Corp.;
(EDT)
of its
first-mortgage bonds, in an aggregate amount not yet
Beane
Bids—
contemplates the
Underwriter—May be deter¬
Probable bidders; Hal¬
Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
Weld
&
Co.
and
Shields
&
Co.
(jointly).
possible that issue may be placed privately.
It is
also
Number 5472
182
Volume
.
.
The Commercial and Financial Chronicle
.
(1559)
The day
•
bankers
market
following,
$30
Thursday,
bring to
on
slated
are
to
million
of
Continued
issues
of
the
Nuclear Fuel for the
fore¬
World Power
of
Hoping for the Best
Definitely
improved
sentiment
"is evident in the investment mar¬
ket) especially in the new issue
•end
of
the
business.
The
better
feeling doubtless stems primari¬
ly from the rather limited new
supply in face of steadily accumu¬
lating funds which must be put
to work.
Not
in
least
the
the
bond
changed
market
Shake out
in
way
back,
thinking
is
which
the
has
equities.
it
keen
influential factor
students
market
that
of
of
investment
the
bonds
on
and
been drawn far
too
c«ose.
It
their
was
contention
that
something had to give — either
bond yields had to taper off or
4he rate of return
stocks must
on
Well, whatever the
r'se.
cause
of
the setback in stocks, their
were
substantially
today than
yields
attractive
more
in
move
a
to glut the
manner
market.
Rather they would prefer to see
more
a
less steady flow of new
or
issues which would
assure
against
overtaxing of demand and
quent building
up
conse¬
of unsold back¬
logs.
There
the
Slowed by
is
sharp
Break
question but that
in the stock
no
Edison
which,
Co;
of
contemplates
large
a '
"rights" offering to be underwrit¬
ten by bankers.
The
proposal is for
"rights" to
stock
be
termed normal.
The
share
improved
attitude
bonds naturally is
prise to
Inten
chiefly
where
sur¬
a
But the latter has
in
short-term
reversal
a
about
bit of
a
in view of the firm*
some
in money.
mass
toward
quickly
if
rates
could
to
warranted
Moreover, the favorable
volve
by
State
£
tions, but because of market
ditions
the
and
(111.) Expressway sponplanned earlier flota¬
had
rs
Thru way,
decided
defer
to
con¬
such
fi¬
nancings.
Both
obtained
their
"money cheaper than would have
-been
the
had
case
15 held
later.
total
of
on
new
new
one
a
date
This would in¬
a
about
Lockheed Aircraf!
Debentures
3.75%
Temporary
debentures
dated
Ready
subordinated
1,
May
1955
of
the
week
rhead is net burdensome and what
more it consists of issues of the
size and type that make for easy
In all only three new
debt issues are up for marketing,
/handling.
convertible
a
to
be
handled
"
via the negotiated route.
Monday
will
«:<»ek
bids
Security-First
Los
St.,
issue
at
National
either
Bank
of
Angeles, Calif., 215 West Sixth
Los
Agneles, Calif.,
or
at
Bankers
Trust
New York
Co.,
Wall
46
St.,
15, N. Y.
one"°d
Southern Bell Telephone for
issue of $30 million of 40-year
debentures which carry a Triple
York
State
&
Gas
30-year
first
mortgage
In both instances
pros¬
try,
bonds.
bidding is likely
to prove keen.
also
has
which
been
exploration
to
Both ion
processes
solvent
presently
from
acid
Highly sensitive! scintil¬
counters-weighing ast little
five
pounds
ground
available
are
weighing from
for
Instruments
surveys.
50 to
100
pounds
With sensitive scintillation
log¬
ging instruments, used in
tion
with
electric
used only
alkaline
is
it
possible to determine the position,
and approximate grade
of
mineralization, and to differ¬
thickness
ments
have
logging
been
bore
developed
holes
small
as
as
two inches in diameter.
Although these instruments
now
the major contributions of the
tensive
the
exploration
past few
development
and
of
uranium
on
uranium
been
scientific
the
infor¬
mineralogy
the nature and
on
of
program
has
years
ex¬
deposits.
occurrence
This
is
in¬
formation of permanent value and
will aid the geologist in
any area
at
and
time.
any
geological
number
of
have been pre¬
papers
for
pared
A
presentation
the
at
sessions
or
publication
proceedings of this confer¬
in the
affiliated with Daniel Reeves
now
&
Co.,
398
members
South Beverly
of
the
New
Drive,
York
and
Lcs Angeles Stock Exchanges. Mr.
Finerman
was
previously with
Coombs & Co.
effective but
more
(Special to The Financial Chronicle)
BEVERLY
vyn
made in
um
considered
the
of
not
are
of
&
D.
Weston
Beverly
Co.,
Drive.
140
ences
major
be
reduction
and
during
have
become
years
new
and
ores
milling certain types
result from
method
of
search laboratories
cheap,
a
mechanical
are
working
the
size
of
milling operations. However,
uranium operations the
most
cost of milling should
This
general review of produc¬
and resources indicates that
longer
no
a
be
can
metal.
rare
ready
developed is sufficient for
major nuclear power program
of world-wide
production
needed.
SAN
R.
cal shortcuts toward
tent
life,
These
r^nge
from
below
the
are
costs
$5
per
that
ton.
should
prevail in most established mining
industrial communities.
In
a
isolated
generating power
of liberal
learning broadly con¬
ceived.
Our position is based
firmly on the rock of our con¬
in
creative and
and
our
out
him
uncommon
conviction
our
that
democracy
wither and die."
—
nium
with¬
be
University.
is
the
Ion
extent.
be
can
Additional
used
pulp.
Dr. Harold
nates
to
of
use
ion
are
required,
recover
losses to
and
a
may
uranium from
or
reduces
only hope that Princeton, and our other
great educational institutions too, for that matter,
can
will
in
always remember their plain duty to society
respect of the uncommon man.
precipitate, 60%
U:iO„,
obtained
is
mediate
soluble
minimum. A high grade
uranium
We
&
con¬
Co., 2486
Staff
to
STOCKTON, Calif. —Harry L.
Smith has been added to the staff
of Walston &
Co., 137 East Weber
Avenue.
Joins B. I. Barnes
(Special to The Financial Chronicle)
BOULDER, Colo.—A. G. Kirchhas
ner
joined the staff of B.
I.
Barnes, 2007 Thirteenth Street.
With A. C. Allyn & Co.
(Special to The Financial Chronicle)
CHICAGO, 111.—Turney E. Buck,
Jr.
has
become
associated
with
A. C.
Allyn and Company, Incor¬
porated, 122 South La Salle Street.
Mr. Buck was formerly for sev¬
eral
with G. H.
years
Walker
&
Co. of St. Louis.
DIVIDEND NOTICES
effi¬
more
SOUTHERN(
to Staff
OAKLAND, Calif.
Nichols
staff
GAS
COMPANY
has
of
been
John
—
added
Reynolds
&
Birmingham, Alabama
W.
the
to
Co.,
Common Stock Dividend No. 67
1404
A
Franklin Street.
has
Joins Kerr & Bell
LOS
Natural
inter¬
up-grading
steps.
Al¬
though ion exchange has been
used in water purification for a
long time this is the first com¬
declared
Stock
the
on
of Southern
Gas Company, pay¬
able December 13, 1955 to
at the
ANGELES, Calif.—Wm. B.
Worley
been
Common
(Special to The Financial Chronicle)
has
stockholders of record
joined the staff of
& Bell, 210 West Seventh
Street, members of the Los An¬
geles Stock Exchange.
Kerr
close of business
on
Novem¬
ber 30, 1955.
H. D.
McHENRY,
Vice President and Secretary.
With Financial Investors
Dated: October 8, 1955
^
(Special to The Financial Chronicle)
SACRAMENTO, Calif.—Marvin
D.
Riley
is
Financial
1716
with
connected
now
Investors
Incorporated,
HOOKER
Broadway.
ELECTROCHEMICAL COMPANY
Two With Walston Co.
Niagara Falls, N. Y.
(Special to The Financial Chronicle)
Dividend Notice
Board
The
of
Directors
1955, declared dividends
as
on
October
Trader Available
the
I
60
am
years
of
payable
age,
wide
December
of record
December
and
security
markets.
many
friends
Can
give
in
all
excel¬
on
service
listed
or
ployed
ence.
to
unlisted
as
Box
an
out
house.
of
Now
York
29,
as
1955,
25,
dividend
of
$.25
1955 to
of
stockholders of
business
1013,
7,
N. Y.
stock¬
of busi¬
per
record
November
ANSLEY WILCOX 2nd,
em¬
O. T. C. Trader. Refer¬
H
to
of the close
1955.
share
2,
as
of
1955.
town
Commercial
&
Financial Chronicle, 25 Park Place,
New
2,
the Common Stock, payable November
the close
lent
share
ex¬
Quarterly
perience
per
$4.25 Cumulative Preferred Stock,
holders
ness
6,
follows:
Quarterly dividend of $1.0625
on
or more
without
regular quarterly divi¬
cents per share
dend of 45
exchange
resins
directly from
Recovery from pulp elimi¬
thickening
and
filtering
problems
Dr. Harold W. Dodds
become
obtained when
profitably.
exchange
clarified solutions
will
has
Blalack
(Special to The Financial Chronicle)
nium cost.
expensive, mill¬
be treated
can
resins.
with
cient use of nuclear fuel
through
improved conversion or "breed¬
ing" may offset the higher ura¬
Probably the most important
development in extraction of ura¬
man
MARINO, Calif.—Charles
Walston Adds
4
milling is an important factor Walston & Co., Ill Pearl Street.
determining the grade of ore
that
W. Dodds, President of Prince¬
ton
where fuels, chemi¬
are
Ex¬
Huntington Drive.
ing cost will be correspondingly
HARTFORD, Conn.—Albert E.
higher. It is evident that the cost Miller and Henry Sapia are with
compe¬
of
fidence in the
areas
cals and labor
shall maintain the
we
Montgomery
Francisco,. Stock
Westbrook
nected
and
"In
an
age enamored of
skills, techniques and mechani¬
265
of4he New York
With Blalack Co.
When the vast low grade
resources
Co.,
(Special to The Financial Chronicle)
are
extracting the uranium economi¬
cally.
Uranium
production
al¬
a
San
i
con¬
There
extensive deposits throughout the
world and there are processes for
$5 to $15 per ton of ore. Large
plants with favorable metallurgical
and operating conditions can have
costs
—
with
now
on
flotation and other possible meth¬
ods of mechanical concentration.
uranium
and
mills. Urani¬
in
Calif.
is
-
of
could
sidered
&
Street, members
in
concentration,
tion
Walston
Kereta
(Special to The Financial Chronicle)
in chemical consumption for
milling
Hear! Hear!
might
theoretically practical.
a
efficient
recovery
different
the staff
cost
ore
•
developed
few
the
ores.
which
Reynolds Adds
should be about 90%
nearly any type of ore. The
cost of processing may vary wide¬
ly, largely because of the differ¬
for
to
Daniel
last
standard for all
Levinson and Milton A. Phil¬
lips have been added
results
However,
Uranium
uranium metallurgy
processes
the
the
South
in
Metallurgy
Calif.—Sel-
HILLS,
the
and
Major advances also have been
the
FRANCISCO,
S.
NATURAL
Made
to
Fay & Co., 208
changes.
gen¬
for
Daniel Weston Adds Two
SAN
ence.
Advances
Arlie R.
—
added
With Walston Co.
erally
considered
indispensable in
exploration,
the
basic
been
(Special to The Financial Chronicle)
Vojmir
such as flotation.
This would provide a higher
grade
product for treatment by the more
for
expensive chemical processes. Re¬
entiate the various rock types en¬
countered in a bore hole. Instru¬
has
solutions.
Either
alkaline solutions may be
used to dissolve the uranium from
the ore.
Acid solutions are
or
connec¬
logging,
and
Middle Street.
acid, solutions.
economic for high lime
used for airborne
Co.
Co.
staff of Nathan C.
and
re¬
experiments, however, in¬
recognize incon¬ dicate that ion exchange also may
be used for
outcrops of radioactive
recovery of uranium
lation
Hood
&
PORTLAND, Maine
Porath
ex¬
extraction
are
in connection with
J.
Fay
(Special to The Financial Chronicle)
failure to
spicuous
are-
and
C.
Nathan C. Fay Adds
has
adapted
uranium extraction.
mineral.
HILLS,
Calif. —
William S. Finerman, William R.
Jerome and Harry W. Wayne are
Corp.
will consider bids for S15 million
of
duced
BEVERLY
Wedessday, New
Electric
a
uranium
extraction,
been used in the chemical indus¬
systematic
technical
an
on
of
areas
Solvent
Mr.
Nathan
associated
McRae, 449 Main
Hansen was formerly
Walter
Recent
of
that
by
A rating. And
in
for
(Special to The Financial Chronicle)
is
one
possible
change
bentures
original plans
for
it
excitement that has bQen the ^ase.
In the hands of
geologists, these
instruments have greatly 'speeded
mation
"Street-Sized" Fare
calender
and
Lockheed Aircraft Corp. may now
be exchanged for definitive de¬
of
become
E.
re¬
covery.
coun-
work still is detailed field geology
and laboratory research.
One of
Three With Daniel Reeves
The
made
uranium
been carried out.
*
scintillation
almost anyone to become
are
new
Cook Co.
for each
of
1,110,000
shares which shapes up as quite
an undertaking and one for which
the market must be right.
recep¬
offerings of turn¬
pike bonds, has had its influence.
In both cases, that of the New
York
ratio
the
be fixed
tion accorded this week's two sub¬
stantial
in
come
conditions.
have
pector
Chicago,
allow holders to subscribe for
might
iers
and
mercial application for metal
with
surveys.
A
has
chilled
prospective number of valuable
uranium de¬ T'Uranium metallurgy will con¬
equity deals for the time be¬ posits-.have been found
tinue to be improved and new
by lowing.-, Firms with plans for/raising level aerial
surveys.
High-level chemical processes will be devel¬
such capital probably will .take
But no longer is there a
flying
in
broad
reconnaissance oped.
time
out
to
see
what
happens
surveys has been directed toward wide
margin between the costs
through the balance of the year.
and recoveries being obtained
locating favorable areas for more
by
A
case
in point is Common¬
detailed investigations.
efficiently operated modern plants
wealth
has
Street.
Program
new
in
what
^
setback
month ago and the
relative position with bonds more
with
Geiger
market
a
keeping
technological advances
exploration and metallurgy.
as
Equities
months
observation
yields
equities had
the
hoping prospective borrowers will
under¬
Some
the
was
in
substantial
-
been
to do all the business possible, are
not
major
in
With the market endeavoring to
put its best foot forward, under¬
writers, though naturally anxious
ROCKLAND, Maine—Philip H.
Hansen
with Lincoln
going dimensions because they do
not require the setting up of huge
marketing syndicates.
:
Lincoln McRae Adds
(Special to The Financial Chronicle)
debentures, 20-year matur¬
ity, of Burlington Industries, Inc.
like
14
page
subordi¬
nated
Bankers
from
47
Half
o
Cenfory of Chemico/s
from the Salt of the Earth
190S-r1955
Secretary
The Commercial and Financial Chronicle
48
.
.
Thursday, October 13, 1955
.
(1560)
BUSINESS BUZZ
Washington...
from the
Nation's Capital
EVENTS
;
PLOOP'S
mA/
JL
JL m w\A/
x
,
t
Corporation
D.
Taft
in
Mr.
own
satraps, who hold
at
the pleasure of the
Ruling
states.
Beck's
office
There
also
are
Union.
governmental
in
usually the Presi¬
naming them .has to
and
in
Senators or
with
either
consult
local
politicos,
Beck
need
Mr.
both.
or
with
consult
only
really
startled
-
himself.
has
What
local
in
that
been
has
dustry
in¬
Team¬
employers,
contracts offered by the
sters'
with
Union
a
clause
employer,
upon such
time as there is a
regional Teamsters' Union con¬
tract,
that he will
pay. the
wages agreed to under such re¬
is
there
which
appearing
gional contract.
is predicted
to get
of
business
bothersome
the
rid of
is aiming
Beck
Mr.
negotiating
individual
with
local groups
of employers, in
establishing wage rates
for truckers over a large area.
or
Association
funds
union
of
will
that
of
Investment Bankers Association
such
a
wide
There is
truckers.
for
belief
firm
and
a
nation-wide
stage prelude to a
contract
merely
this
in
capital that a nation-wide, sin¬
gle,
standard
trucker
union
contract is the objective of Mr.
Dec. 2,
funds.
that
reported
back
relationship
income tax,
individual
876
being,"
well-
national
together
In
Mr.
the
the
in
rates
brackets, as its tax package to
for its
in
drop
been
have
There
several
re¬
Per
Administration
boost of $100
exemption, along with
support
per
the
moderate tax relief in the mid¬
it
This,
brackets.
surtax
dle
this
Iiead
of
Union,
Teamsters'
the
the
achieved,
is
istration.
will become the most
Mr. Beck,
Administration
to
powerful union overlord in the
United States, it is contended.
For
which
at
the
any
will
tires
rubber
of
more
power
empires.
limited
Beck's
Mr.
have
unions
Other
under
come
persuasion
gentle
Beck.
merchandise
time moves on
of
kind
any
far
Mr.
would cut
favoring
However, it is recognized that
in
election year, the
an
istration
had
probably will
voted
be
cut
tax
by the Congress any¬
way.
While
cut
rather
and/aggressive
able
the
Reuther,
process-of-uniting,
labor
tional
in the
the,
or
single
na¬
union
the time
comes
man
paralyze, not merely
can
one
a
important industry,
but perhaps the economy of the
^entire
land, the sooner there
great
and
might
opinion,
almost
national power of
See No T-II
or
in
is
likely will
year,
likelihood
amend
seen
Taft-
the
Act, the dearest ob¬
jective of organized labor. The
President's
own
some
diminution
misfortune por¬
or
a
considerable
his
of
influence.
The parties are closely
(One
leaders
of
in
the
few
divided.
successful
Congress,
Senator
Lyndon Johnson of Texas,
be in diminished
sult of
his
heart
dollar per cap¬
boost in the exemptions,
is, of course, no indication
President
is
to
restored
full
Eisenhower
is
it
vigor
quite possible that many of his
party followers in Congress will
fall
victim
the
to
political
ap¬
boost in the exemp¬
This has the effect
of
peal for
tions.
this.
at
rela¬
a
happened
is
that
the
In 1-947 the total farm
amounted
1955
it
drop of
estimated
was
to
New Scott Branch
By
have
vigor,
SCOTTSDALLE,
Ariz. — The
Corporation has opened a
22,158,000 persons, a
nearly 5,000,000 or al¬
office
Avenue
under
Thomas B.
at
46
East
First
may
Then,
too, where there is likely to be
l\ps
great
voter
of
direction
the
Scott, Jr.
National
United
—
York
Farm income
367
million
mate
for
in
the
a
speech
tures
1955—Brookings
Lec¬
Institu¬
tion, Washington 6, D-. C. (cloth)
year
$19,500 million, a decline of $1,800 million or something like
9%.
These
include in¬
the farm popu¬
figures
(Special to The Financial Chronicle)
is
PASADENA,
Tedder
Wayne
is
now
Hough
Calif.
—
affiliated
&
Co.,
Joel
H.
with
A.
Security
come
earned by
Building.; He was formerly with
Lester, Ryons & Co.
New Views
on
CALIFORNIA
that
the
10
the
Carl Marks & Co. Inc.
pro¬
FOREIGN
Eisenhower Ad¬
came
into office
platform
which
called
for
50 BROAD STREET
of
government
HANOVER 2-0050
a
budget, but said:
.U.llJW.Mll I'11
"Such, however, is the seam¬
web
SECURITIES
•
SPECIALISTS
NEW YORK 4, N. Y.
on
TEL:
balanced
today
STOCK
on request
Investment
the
national well-being. Mr. Hughes
that
(Common)
LERNER & CO.
motion of national security and
ministration
B
Copies
by
of
balancing
subordinate to
objective
is
less
Brookings'
Government,
CLASS
admission
tacit
budget
noted
!
$2.75.
Rowland
Hughes, Director of the Budget,
several
days
ago
before
the
Chicago Economic Club, there
was
New
27, N. Y. (paper) $3.
RIVERSIDE CEMENT CO.
the
In'
University
Broadway,
With A. W. Hough Co.
aggregated $21,1947. The esti¬
current
-
A
f I IJ
TELETYPE NY 1-971
—
ST/ECA/SER.
Columbia
2960
Inter¬
to
Agreements
Tax
most 20%.
Ruled Subordinate
a
as a re¬
attack.
hence
and
national
C./5
Agreements,
Tax
World Guide
V:
Vol.
Research Frontiers in Politics and
Scott
branch
Princeton Uni¬
request.
International
•
(Special to The Financial Chronicle)--
popula¬
to
on
Press,
.
figures.
Sociology,
versity, Princeton, N. J. (paper)
cells & Co.
27,124,000,
to
census
and
—
per
i
nificantly.;
tion, Department of Economics
change,
as
co-manager
of the
trading department. Mr. Naumes
was
recently with Carr & Compant and prior thereto was for
many years with Charles A. Par-
capita hias increased rather sig¬
on
ing—International Finance Sec¬
members of the Detroit Stock Ex¬
that
Ar¬
Sharing
Cost
rangements—Thomas C. Schell-
John
R.
Naumes has joined Don W. Mil¬
ler
&
Co., Penobscot Building,
Mich.
DETROIT,
farmers
maintained
the- farrtr- income
based
(paper).
Don W. Miller i Co.
clined, the farm population has
declined
so
much faster than
shrunk
this form.
Unless
of
e w
Building, Detroit, Mich,
International
J. R. Naumes Joins
while total farm income has de¬
tion
coincide with
views.]
own
N
Association,
ufacturers
the "Chronicle's"
Figures:
and
Facts
35th Edition—Automobile Man¬
Budget Balancing
Hartley
tends
"liberal"
Automobile
Center
Reserve
discovered
income
has
What
eight
charm.
Congress next
to
this
a
the
tax
taking millions off the tax rolls,
Amendments
little
action
than
it
for
unregulated
In the chaos which
prevail
or a
if
plump,
percentage
the
for
idea of either
ita
to
labor unions.
perhaps,
the
down
there
a.public
swatting
finally develop
is
Ad¬
that the actual tax cut will take
federation.
Industry men do not yet ap¬
pear to realize that the sooner
when
Eisenhower
the
to,
Walter
an
more
ago.
and may or may not
ported.
dividual
has
than
a
in¬
since
pires, and give the Head of the
power
make
been
10%
than
than
capita
flect the "behind the scene" inter¬
tively higher levels than total
farm
income," the Board re¬
Admin¬
recommendation
across
im>re
better
Federal
which
capita
"has
all these not inconsiderable em¬
Union
Per
farm
/
the
was
Board
tax reduction.
any
ministration
Teamsters'
It
January, the
will not admit
next
down
come
ago.!
years
has
Until the budget for 1957
a
but
the
on
pretation from the nation's Capital
particular branch of the econ¬
omy is doing much better on a
per
capita basis than several
be stated, is not the inten¬
tion of the Eisenhower Admin¬
may
10%
a
nearly
[This column is intended to re¬
Despite all the weeping, wail¬
ing, and gnashing of teeth by
the politicos over the sad state
of
the
farmer's income,
that
a
was
population,
in
remaining
better
years
Capita Farm Income Rises
fig¬
was
income,
income
the
that
would
there
total
derived
sake.
own
as
It rose to
$788 in 1947.
figures,
those
objective
budget is no more an
be offered to the new Congress.
well
as
income
capita
20%
words, balancing the
In other
middle
Meeting at
,
drop
r
Hughes said.
farm
Annual
the Bankers Club.
by 1955, or more than 10%.
other words, roughing out
the
modest lowering further
a
'
Per
national security and
improved
the
off
it.
ured at
ob¬
broad
the
to
jectives of our national policies:
percentage cut in the
a
on
longer be conr
in isolation, but only in
no
can
sidered
ity to be the firm intention of
the Eisenhower Administration
lation
fiscal
and
budgetary
our
policies
good author¬
on
York
_New
'our pinhead'!"
'Stop referring to me as
Oppose Exemptions Lowering
It is
(New York City)
1955
Security Traders Association of
It probably would
saddle on management consider¬
able responsibility for protect¬
ing the security of the pension
ployers.
in
Holly¬
at
wood Beach Hotel.
Beck.
Once
Convention
annual
legislation might not be
altogether a blessing for em¬
Such
of
(Hollywood,
1955
Florida)
funds.
with
City)
York
(New
Nov. 27-Dec. 2,
make for hon¬
handling
the
in
esty
1955
modore.
1957, even though
nobody likes to offend unions in
an election
year, the enactment
until
pone
19,
dinner dance at the Hotel Com¬
not be able to post¬
may
ports
be
Board of Gov¬
Security Traders Association of
New York, cocktail party and
pension
odorous, that Con¬
so
are
Nov.
favor of
And
Exchange
Stock
of
hand, some ob¬
that the scandals in
say
handling
the
to
In other words, it
that
(New York, N. Y.)
Nov. 16-18
the
pledges
Asso¬
Convention.
ciation Annual
Firms meeting of
of legislation to
.
(Hot Springs, Va.)
1957
National Security Traders
is
conventions
the other
gress
"regional
many
directors"
service,
dent
servers
Teamsters'
the
of
head
Nov. 3-6,
Messrs.
GOP
Traders Asso¬
ciation Annual Convention.
ernors.
On
are
areas
Calif.)
National Security
in point.
case
union
the
enlarged
these
two
a
several
embracing
in
last
Springs,
(Palm
1956
24-27,
Oct.
Dewey and
Congress prior to the
of
porters
and to have re¬
his union into re¬
each
gions,
meetings at Mid Pines Club.
the
valry of the Congressional sup¬
ing delegate,"
organized
—
express, as to pending legisla¬
tion, the ideas of the men they
are backing for the nomination.
The under-cover but fierce ri¬
"walk¬
importance of the local
of
Caro-
Dealers of the
Securities
party split somewhat into
rival blocs as they attempt to
a
said
members
parties,
(Pinehurst,
1955
linas,
North
Carolina
Muni¬
cipal Council and South Caro¬
lina
Municipal
Council joint
same
period of time, Beck
to have abolished the
Over
is
both
in
Presidency
the
for
ination
is promoting.
Beck
Mr.
free-for-all race for the nom¬
a
C. — In¬
who seldom
underrate Dave Beck, the pow¬
erful
head of the Teamster's
Union, are now taking a fresh
and apprehehsive look at a new
development which they report
WASHINGTON,
dustry people here,
14,
&
N. C.)
PINS AND NEEDLES
—
13
Oct.
Field
Investment
In
J V^\||
BcWnd-the-Scene Interpretations
COMING
Securities
Post Office
Square
Boston, Mass.
Phone HUbbard 2-1990
Teletype BS-69
-
@FedFRASER