Full text of Commercial and Financial Chronicle : October 18, 1956, Vol. 184, No. 5578

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ESTABLISHED JS39

OF MICH

&a;

;

flcyis 1855

Commercial

S ADMIN'U

iifiRARY

Chronicle

R«ff. 0. 8. Pat. Office

Number 5578

184

Volume

New York

Price 40

7, N. Y., Thursday, October 18, 1956

Cents

Copy

EDITORIAL

What Government Mast Do

Are We Growing Too Fast?
By DAVID ROCKEFELLER *

Manhattan Bank,

Executive Vice-President, Chase

What Mr. Stevenson would do if elected to the

New York City

;

Presidency at the head of

;

Democratic regime

Chairman, Council

is at this moment not easy

certainly
from

to fathom. One would
draw specific conclusions

hesitate to

By ARTHUR F. BURNS*

Voicing cautious optimism, leading banker depicts imme¬
diate problem is not investment instability threatening a
decline but rather one of trying to invest too much in

of Economic Advisers

President's Economist visualizes output, now at annual

$414 billion rate, approaching $600 billion mark in

what

he has been saying as he "whistle-;
stops" the country. If experience is a safe guide
the Democratic platform is about equally un¬
trustworthy as a guide. The course of a re-elected

an¬

building

other ten years,

but warns that economic progress does
automatically nor dispense economic opportu¬

not come

than bunched

legislation and
necessary Government contribution to overcome ineffec¬
tiveness of human individual effort iii order to help rem¬
edy podcets of depressed farm areas, frictional and
chronic unemployment, and small business problems.

Eisenhower Administration is

perhaps somewhat
easily inferred from the record that the
present Administration has made, but since there

telling whether the new Congress is to be
Republican or Democratic or whether if Repub¬
lican it would give full support to the President;
it must be said that* very considerable uneer-tainty exists about public policy during the next'
four years no matter who is to be elected Presi¬
no

dent.

•

One

Dr. Burns recommends

nity evenly.

employment,
education

encourage new

and

vocational

most

look

back

the

across

straint

years,

during cyclical;

I feel that the out¬
achievement of

when

*•

New

Deal and

the

Fair Deal

the

shall have

inequality

best

than

moderation here

greater

sanity and certain

there in

and

•these

application.

shrinking
been

Of "Opportunity

obstacles

dollar
a

progress

This has been true of the Eisenhower Adminis-

Continuedlon

page

Oct.

afforded

are

address

Dr.

before

Burns

have

fast—whether

leading to

followed

All of

our

current

rate

crash which could be

nity have

spiral

downward

in the financial

deep-seated

commu¬

interest

the continued growth and well-being
of

Aft&ur F

Burn.

the

ages.

loom

very

tions

Oberlin College,

Happily, large as:'.'
page

Oberlin,

David Rockefeller

Financial institu¬
playing an increasing role in the vital process
of channeling the community's savings into productive
investment.
Thus, we, of all people, need to keep a
our

economy.

are

Continued

24
♦An

Ohio,

the

address

Mr.

Life

American

Rockefeller

Convention,

the

Chicago,

51st

111.,

Annual

Oct.

12,

page

Meeting
1956.

REGISTRATIOxN—Underwriters, dealers and investors in corporate
a

complete picture of issues now registered with the SEC and poten¬

in Registration" Section, starting on page 34.

tial undertakings in our "Securities

DEALERS

not

in the past, but
experienced
such

encountered
we

the business cycle.

1956.

SECURITIES NOW IN
securities

Continued
♦An

too

great

through

investment funds
great, it is taxing the resources of the
This is a situation we have

yof expansion is running the risk of

unem¬

mass

has

of these

destroyer

their

incomes,

ployment, >:and

—each

better

know, the demand for

some

•

stringency, it has often been a sign
of
possible trouble ahead.
Today,
have expressed misgivings that
this may again be the case. Conse¬
quently, it seems to me timely and
appropriate to explore the question
of whether we are trying to grow

•

of government.' As

all

seldom

legitimate functions

re¬

policy in view of sharp warning note exemplified
in recent price behavior.

entire financial community.

standing as well as the noblest social
however,: list with the greatest as¬
"tour times has been the widening of:
surance a number of
things, all of them impor¬
economic" opportunity in our coun-'
tant, that no one heed expect no matter how the
try/ We had great prosperity during
the Nineteen Twenties, but the fruits
voting goes next month. No election campaign
of that prosperity were not shared
was,„ of course, needed to render it possible to*
widely enough. We carried out sig¬
draw up such a list. All that recent events have
nificant social
reforms 1 during the
done is to call the fact painfully to the attention
Thirties, but in the best year of that
of thoughtful'citizens'with
the good of their
decade close to 8 million men and
women were unemployed.. We prac¬
country at hearty It has been clear for four years
tically eliminated unemployment
past, and it is clearer than ever now, that there
during the Forties, but a huge part
will within the next four years be no return to
; of people's- savings was simultane¬
.time-tested American ideas
of the scope and
ously wiped out by inflation. Sharp

may,

De¬

be said for Federal Reserve's credit

can

these days is so

' '

pauses.

demand from

productive and least inflationary loan needs.

clares much

investments, improve general

growth

consumer

and investment outrunning nation's
savings, Mr. Rockefeller urges bank, insurance and other
lenders to establish sound fending standards and meet

rising too rapidly;

guidance, and maintain and

extend economic and social progress even

To maintain balanced rather

growth; to prevent

new

Wants Government to foster competitive market and high

capacity and having to stop short and wait

for demand to catch up.

State, Municipal

and

U. S. Government,
State and

UNDERWRITERS

Municipal

BROKERS

and

STATE

DEALERS

Public

MUNICIPAL

AND

Securities
telephone:

COPIES OF OUR

RAILROAD

PUBLIC

CHEMICAL

CORN EXCHANGE

"POCKET GUIDE FOR

UTILITY

Burnham
MEMBERS

ST.,N.Y.

NEW

YORK

and

REQUEST

CABLE:

Members

AND AMERICAN STOCK EXCHANGES

15 BROAD STREET, NEW

YORK 5, N. Y.

•

Dl 4-1400

Bond Dept.

THE

Harris, Upham

OF NEW YORK

Company

AVAILABLE

NOW

the FIRST NATIONAL CITY BANK

DEPARTMENT

BOND

ARE

SECURITIES

BANK
BOND

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TODAY'S

FOREIGN

30 BROAD

Bonds and Notes

LATEST

BONDS

INDUSTRIAL

HAnover 2-3700

Housing Agency

Teletype: NY 1-708

New

York

Stock

C-

Exchange

Chase Manhattan
bank

—120 BROADWAY, NEW YORK 5

TELETYPE NY l-Z2«2

COBURNHAM

34 offices from coast to coast

Net Active

Markets Maintained

To Dealers,

INVESTMENT

Banks and Broker.

T. L. Watson &Co.
SECURITIES

ESTABLISHED

CANADIAN

1832

3%%

the

Commission

New York Stock

Exchange

Stock

Exchange

Orders

Executed On

British Columbia

Guaranteeing Pacific Great
Eastern Railv/ay

SECURITIES

Members

$150,000

Province

All

Due

Debentures

June

Supercrete Ltd.
COMMON

Analysts
our

upon

Unlisted

1981

15,

request to

Trading Dept.

(Rocm 707)

Canadian Exchanges At Regular Rate.

Payable in United States dollars

American

gouthw&ti

BROAD

STREET

NEW YORK 4, N.

<&OtUAu>e6t COMPANY
.

MtWK

DEPARTMENT

Price

93.87

yield 4.15%

IRA HAUPT&CO.

Teletype NY 1-2270

FIRST

CANADIAN

DIRECT

WIRES TO

MONTREAL AND TORONTO

DoHimoTi Securities

Members

New

and other

Goodbody & Co.

6 rp oration

111

York Stock Exchange

Principal Exchanges

Broadway,

N. Y. 6

.itMBERS NEW YORK STOCK EXCHANGE

bridgeport

PERTH AMBOY

-15

BROADWAY

NEW

YORK

1 NORTH LA SALLE ST.
CHICAGO

Exchange

Place, New

Teletype NY 1-702-3

York 5, N. Y.

WHitehall 4-8161

WOrth 4-6000

Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

(1634)

For Banks,

The

Brokers, Dealers only

Security I Like Best

A continuous forum in which, each week,

participate and give their

Try "HANSEATIC"
distribution

your

poration's securities can
strong
factor
enhancing
relations

stockholder

your

program.

geographic distribution
more
active trading in your

they to be regarded,

as an

intended

be, nor
offer to sell the securities discussed.)
not

are

The dominant activities in Latin

MARACHE

THEODORE

W. R.

Grace

Co.

America

the

are

production

textiles.

Paper

Nat'I

Donald

and the manufacture

sugar

paper,

is made
bagasse, the residue fiber of

by the

Established

American

1920

Stock

Exchange

120 Broadway, New
WOrth 4-2300
•
.

PHILADELPHIA
Wires

CHICAGO
SAN

FRANCISCO

Principal Cities

and

has

1953

listed

Marache

Theodore

York

New

the

Stock

Exchange.
W.

RIGHTS & SCRIP
Since 1917

McDonnell &fo.

diversified

most

Co. may be the

Grace

and

built in partner¬

Hoechst,

Farbwerke

most

component

Line.

fined

Federal' Maritime

the

major

company

early this

contract

effects

signed

more,

only

Chemicals, 33.9%; Foreign, 28.1%;

which

U.S.

and earned

Members

This

cost

million

$7.8

1952

$1.9 million after taxes

largely

Libyan

oil

1955; and Grace National Bank
earnings equalled near¬

BROADWAY, NEW YORK 8
TEL.

REctor 2-7815

admittedly a
whicii, r.owdramatic possibilities

holds

convertible

selling at about
York

3V2S,

113

1975
the

Furniture

vertible

into

$1,000 bond, they
mately at parity.

per

approxi¬

Commonwealth Natural Gas
Life Insurance Co. of Va.

STRADER and COMPANY, Inc.
Lynchburg, Va.
LD 39

TWX LY 77

Home

MOFFAT

Vice-President, C. F. Childs
& Co., New York City

Federal

National

Common

Mortgage

Stock

"Fanny
the

implies, FNMA is

name

U. S. Government agency.

by
(Charter

ever,

Act

The great

expansion of the com¬

Missouri Research Lab.
*Prospectus On Request

ESTABLISHED

37 Wall St., N. Y.

1929

Tel. HAnover 2-4850

the

and

for

but

counted

5.9%

recent

ac¬

Grace

sales.

ration

Gulf will

even

in¬

spectacular,

creasing to nearly 55% at the 1955
year-end from 3% at the 1950
year-end. Moreover, approximately
60% of the estimated $55-60 mil¬
lion to be spent on

capital

expen¬

ditures this year will be for chem¬
icals

increasing further the assets

the

and

than

A sig¬
90%

over

million

re¬

development expendi¬

for

budgeted

1956

will

applicable to chemical lines.
Chemical

49%

of net

products include

syn¬

forming catalysts,

silica gels,
agricultural and industrial chemi¬

(excluding undis¬
No break¬
down of net earnings by product
groups is given.
However, a top
official early this year anticipated
that 45%

This

common

low pressure

many

$20 million

new

proportion
at
$4

dend.

good..

ana.

interesting

affiliate

The

COMMON

STOCK

Dealers

HARRY SIMMONS CO.
40 Exchange Place, New York
5, N. Y.
WHitehall

sound

analyst

4-6627

contract

would

write

position

capi¬

should be covered
funds and

corporate

some

debt

financing

The

common

among

favorites.

market

stock

13.2

Grace

Its

times

recent

estimated

1956

nificant that the expected increase

cal

excellent,

10%

annually in per
in future years is

earnings

particularly

on
as

growth
well

in
the

equities.
the

Growth prospects are
increased greatly
few years and should

have

last

continue to be favorable

foreseeable future.

The

over

the

diversifi¬

chemical group. The population of
South
America
is
increasing at
2.4% per year, 30% higher than

cation

the

three times in the last four years.

United

tional

4.4%

its

States:

product

gross

na¬

increasing

annually compared to

in the United States.

3.2%

outstanding and in

respects perhaps
dividends

have

unexcelled.
been

Hospitals

And Adjust-A-Bilt Wall

are

Sections for Homes

from

Secondary
Oper¬

which,

under

the

MORELAND & CO.

Members

Midwest
Detroit

Stock

Exchange
Exchange

1051 Penobscot

DETROIT
Woodward

Building

26, MICH.

2-3855

Branch

Office—Bay City, Mich.

Treasury Department; that amount

being the total, that can be issued.
(It is intended to eventually re¬
this preferred stock.)
It also
has $200 million of publicly owned
tire

bonded

some

The

increased

debt

$100

June

30,

par common

outstanding.

Broadly speaking, FNMA is au¬
thorized to issue obligations in an
aggregate
any

the

not

of its

sum

SiEa

outstanding at

amount
time

one

times

exceed

capital,

sur¬

plus, general surplus, reserves and
undistributed earnings. The Char¬
ter

Act

also

specifically

event

provides

shall

any

such

obligations be issued, if at the time
such

issuance, and
thereof,

quence

gregate

amount

conse¬

the resulting ag¬
of FNMA's out¬

standing obligations would exceed
the

amount

the

Association's

ownership, free from any liens or
encumbrances, of cash, mortgages,
and direct or guaranteed obliga¬
tions

would

the

United

bring

their

States.

the

balance

sheet

billion

for 42 Years

stands to¬

National Quotation Bureau
incorporated

The.common stock

through
chases

Quotation Services

day.

The

Over-the-Counter

This

limitations

debt to slightly over $1

offered.

yield is good for the quality
The great chemical ex¬
pansion has been very recent but

and,

1956, approximately 61,000 shares

that

probable.

earnings, excluding undis¬
down the other activities of Grace tributed
equity—a ratio consider¬
as of little
consequence.
It is sig¬ ably below those for major chemi¬

the Latin American

Brokers

with the Atomic Energy Commis¬
sion.

based

For Banks

under

The

the $2.40 divi¬

substantial

tal expenditures
cash flow but

earth chemicals from

roughly

share.

per

very

largely

sands

may

financial

The

the chemical group is Rare Earths,

rare

chemicals.

at recent market of about

yields 4.07%

polyethylene plant is

of the 1956 cash
from

estimated

under construction in Louisi¬

now

to 50%

would

....

and

per

common

the famous, very fast growing
Cryovac bags. Grace is the largest
as

Moffat

Schools

1 etely

Market
L.

Development in

func¬

ations
Donald

New

with

separate
t>e

from opera¬

$4.45

Unusual

Movable Partitions for Offices,

e r

Charter, has
separate accountability with its
jority of exploration costs.
own capital,
assets, liabilities and
Earnings for 1955 equalled $4.21
borrowing authority. (It is through
per share
common against $3.50
the Secondary Market Operations
for 1954; and for the current first
that the public ownership of its
six
months
$2.37 against $2.14.
common
stock is brought about.)
These figures exclude undistrib¬
The present capitalization con¬
uted equities of 30c, 45c, 25c and
sists of approximately $93 million
18c,
respectively.
Earnings for
preferred stock held by the U, S.
1956 are estimated at

flow

revenues

Grace

and

tions, they

tions, with latter paying the ma¬

cals, and chemical specialties such

important producer of

51%

tributed equity of 40c).

thetic petroleum cracking and re¬

receive

L. A. DARLING CO.

provides

c o m

of concessions. Texas

acres

and

a r

other

agreement

in Libya where a
of Texas Gulf has 25

subsidiary
million

been

ally

FNMA

program

Changes in the distribution of net

FERRY, INC.

Act

Gulf

fixed assets of the chemicals have

monazite

TRAILER

Coast

over

the C h

between
Producing Co. and
concerns a joint oil explo¬

chemicals

1950,

purified

TMT

West

Texas

considerably furthered diver¬

Inc., which extracts thorium and

Trading Interest In

QUOTED

Although

Washington,

has

of these items.

OTeeuecmiG-oiupanu

York,

SOLD

—

private
i t al will

e v e n

South America and Buenos Aires.

E. J. Korvette

F. H. McGraw

Miami

c a

service

one-plane

New

during the last several years
into domestic chemical enterprises

tures

Lanolin Plus

direct

between

Bankers

1954)

offers

Beryllium

BOUGHT

How¬

Congress

managers.

statements.

Branches

Broadway, N.Y. 6 COrtlandt 7-5680

called

Airways,

World

1897

—

Association

(commonly

American

nificant fact too is that

'Brush

111

Tokyo

Investment

May")

Pan

which are not
the company's fi¬

Office

Brokers &

Asst.

owners

represented by that group.

Trading Markets

Securities Co., Ltd.
Established

DONALD

and

Grace

write

Yamaichi

common

are

information

enrrent

Call

Exchange, giving a
yield
of
3.10%.
Con¬

each

sification.

Industries

For

Stock

50%

pany

Bassett

are

New

take

Trading Interest In

Furniture

remaining at practically'
stationary levels for three years
appear to be stirring dne
to improved Japanese
economy.
now

current

offices

after

profit for the shareholders.
The

The impor¬

branch

our

STOCKS

whose net

owned

JAPANESE

venture

tant Pan American-Grace Airways,

nancial

American

Mobile, Ala.

The

ship, 15.4%; Other Domestic Busi¬
ness, 6.2%.
These sales exclude
the
Grace
National
Bank, Pan
American-Grace Airways (Pa-

ly $1 million in 1955.

NY 1-1557

La. - Birmingham, Ala.

Direct wires

recent

chemicals.

deal

speculative
of

through

consolidated

Exchange

HAnover 2-0700

New Orleans,

attributed by the
the better margins oc¬

ican Steamship Co.

Exchange

Exchange
Exchange

quite

1955 from

nagra), and Gulf and South Amer¬

American

ISO

Stock

York

New

Stock

was

investments

which it makes,

Export-Import, 18.4%; Steam¬

been

Earnings in

company to

casioned

in the next 20
of the entire Grace fleet of

considering the products 27 vessels under a construction
The
General
Business
the services which subsidy.
it renders, and the areas in which Group includes Foster and Kleiit
operates. The breakdown
of ser, the largest outdoor advertis¬
the 1955 consolidated sales were ing company on the West Coast,

York,

American

year

today,

old—Quoted

while sales in 1955 increased
3% over 1954, the net rose

20%.

replacement

years

far have

group
were
approximately
aouble
those
of
1954.
Further¬

between the Grace
Line and the Commission provides
for

Members New

this

ever,

important

Grace

Commission.

been

the

produce
other chemi¬

Operations
quite profitable as earn¬
ings have constantly exceeded the
10% of capital employed as de¬
must

since

only

through

of Germany.

owned

Grace

the

family

Specialists in

19 Rector St., New York 6, N. Y.

of the shipping group is the wholly

was

held
members

with

The

years

promising devel¬

being

now

largely
of

cals,
ship

Until

few

ago

plant which will

chlorine

DDT,

is in
the process of
becoming well
a

industry

million

stock

known.

pioneer

noted

foods.

Brazil's

now

Teletype NY 1-40

BOSTON

Private

York 8

the

opment too is the recent entry in

In
the

pretation.

only

"Peadco" process de¬
with the late Clarence

new

frozen

inter¬

casual

be further strengthened

Birdseye,

for

common

Member

•

Steiner, Rouse & Co.

process

veloped

too

been

Moffat,

B o tight—s

Com¬

May") —
Assistant

Members

its

that

place in the business of W.
Grace & Co.
These changes

cane,

Assoc.

("Fanny

Co., New York City. (Page 2)

sugar

favorable.

changes

Mtge.

here will

the

addition,

Associate

«•

ft.J,

Louisiana Securities

Company—Theo¬

Vice-President, C. F. Childs &

from

developed by
Grace engineers. World leadership

not realize
have recently

investors

Many

have

Stock

mon

Research Analyst
Ilayden, Stone & Co., New York City

rapid

Corporation

Alabama &

Marache, Research Analyst,
Hayaen, Stone & Co., New York
City. (Page 2)

New York Hanseatic

.Ml'

Week's

Selections

Grace

taken

For details, write

particular security-

Thursday, October 18, 1956

Participants and

Their

Federal

issue.

t -3

for favoring

(The articles contained in this forum

greater

ami

Forum

group

cor¬

"Hanseatic," specializing in Overthe-Counter markets, can provide
-

reasons

dore
•re

Wider

different

of experts
and advisory field from all sections of the country

in the investment

Improve Stockholder Relations

This

this
of

comes

about

Association's

pur¬

Veterans

Continued

and
on

Federal

page

Established 1913

46 Front Street
CHICAGO

New York
SAN

4, N.Y.

FRANCISCO

Number 5578

184

Volume

INDEX

The Outlook for Business

v * t

•

;r, »

And the Stock Market

».j

....

Are We

Partner, Josephthal & Co., Members N. Y. Stock Exchange

What

Page

Widen

Social

AMD CQWKtrt

Cover

Growing Too Fast?—David Rockefeller

Government Must

»llCHItnSTflli

Articles and News

By S. B. LURIE*
,

THE MOST

Progress

—Arthur F. Burns.,

HAPPY FELLA?

Cover

Market analyst asserts an important buying opportunity has

developed

"Fabulous

since

Fifties"

line

nation's

with

The

spenders. Stresses bullish business inter-

glory, with momentum carrying

Concludes

next year.
'

Aid

South

mistake

no'

this

about

ket

which

'•

is the first

This

era

his¬

our

tory of carefully planned and ag- '

neither deep

gressive research

black,

products which

nor

brilliant

kets.

sales,

words,
that

bear market

in the

sional
our

Conver¬

term.

The

I doubt that
Sidney

market

bull

Redistribution

income

Look

the

Factors

Basic

Inability

,?uf income has been re-distributed into the hands ot those
wh° proportionately spend the
And the trend has accentuimpact of money rates and the
^y our new concept of
elections on stock prices.
These
guaranteed" annual wage intopics are only a portion of the creases,
ot only will this boost
many market considerations facing consumer
purchasing power
the investor today. They are part succeeding
years, but it means

manufactuiers ate being

equation which has created
the floor and ceiling in the aver-

of the

weeks

Two

thought

ago,

I stated that I

portunity had developed. My reasons
for
this belief stem from
three basic considerations which
discuss with you:

I'd like to

Baker...

Our population still is growing
by leaps and bounds. People are
carrying younger, having more
chiluren, and moving around more
than ever before. Those of you
who live in the suburbs know how

stimulant the
explosion" has been.

—

a£e

still

•

The Best Years of Our Lives.

We're

living

different

era

These

wonder ul

-wide,

great,

when

"sub¬

are

The Wall

195g

has

and Means Needed for Raising Federal

—William Jackman

Tight

used

before

it means two

Our

(1)

internal
than

(2)

this

group

phrase
in 19o2

things.

before

and
in

Board'policy
boom.

has

economy

resiliency

ever

greater

buoyancy
history,

our

It's free of the sharp cyclical

changes which were characteristic
of the 1930'.' Look around when

These

will topple
one,
are

followed

wh0

mUst

have

192i.

tne

believe
people

the same
Sewell Avery's

postwar

over

don't

1940's—just

jn the late

Reserve

indicated

which

charts

Federal

1^ for

them!

J.F.Reilly&Co., Inc.
Members

seems

Salt Lake City Stock Exch.
Spokane Stock Exchange

Survey

■■

S. Chamber of

Benefits Completed by U.

Fringe

...'

■

Commerce

Spending Jeopardizing Free Enterprise
K.

Alan

Heads

Browne

Broadway, New York 4

San

Wires to Salt

Mr. Lurie before tbe FedShareholders, Rooseveil Hotel, New York City, Oct. 15, 1956.
by

arC

that

depression
as we did

Cnntinnorl

Regular Features
See It

As We

Lanolin Plus

______Cover

(Editorial)—

______

Funds

Wilfred

that

Reporter

Reporter's Report

—-—

Federal Uranium

The

Security I Like Best

The

State of Trade and Industry

Washington and You

TMT Trailer Ferry

Offerings—

and You—By Wallace Streete

Lithium Corp.

—

Salesman's Corner

The Market

—

Registration

Security

Prospective
Security

General Transistor*

—

_____—

^Column not available

rtnno

Baruch Oil

this week,.

COIllinUea 071 page 0
1

Weekly

COMMERCIAL

The

PREFERRED STOCKS

specialized in

Reg. U. S. Patent

REctor

Members New York Stock

BROAD

New York 7,

Park Place,

HERBERT

WILLIAM

2-9570

Publishers

SEIBERT, President

Exchange

B. Dana

the

post

Subscription

office at New
March 8, 1879.

Rates

Pan-American

Union,

Dominion

$60.00

Canada,

Thursday, Oct. 18, 1956

per

$63.00

$67.00

Countries,

per

year;

per

S.
of
in

year.

TELETYPE N. Y. 1-5

•

plete

statistical

records,

Albany

•

Nashville

Boston
•

•

Chicago

Schenectady '

•

Glens Falls

Worcester

state

Other

Chicago

issue

corporation

and

city

Offices:

111.

—

market quotation
bank clearings,

news,

135

etc.).
South

Other
Bank

Salle St.,

(Telephone STate 2-0613);

and

BROADWAY, NEW

Note—On

rate

YORK 6

WHitehall 3-3960

1-4040 & 4041

Publications

Monthly,
(Foreign postage extra.)

Quotation

-$40.00 per year,

the

Teletype

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

TELEPHONE HAnover 24300

W» V. FRANKEL & CO.
INCORPORATED

in
United States, U.
Territories
and
Members

Possessions,

„

*Prospectus on request

second-class matter Febru¬

1942,

25,

Other

ST., NEW YORK 4, N. Y.

by William

Subscriptions

SEIBERT, Editor & Publisher
DANA

1956

York, N. Y., under th,e Act of

N. Y.

9576

Scripto, Inc.*

Eng-

Company
Reentered

Office

DANA COMPANY,

Edwards & Smith.

c/o

ary

WILLIAM

Spencer Trask & Co.

and

London,

Gardens,

Drapers'

CHRONICLE

FINANCIAL

-j.

Now

Securities

Wires

Philadelphia * Chicago • Los Angelas

:—

—

—i

Securities—

Utility

Railroad Securities

Direct

May.

Governments

Our

Teletype NY 1-1825 & 1-4844

——

INC

40 Exchange PI., N.Y.

HA 2-0270

—

and Bankers

Mackie,

—

Observations—A.

Singer, Bean

Activity—.—

Funds

News About Banks

Ahead of the News—Carlisle Bargeron____

Indications of Current Businesss
Mutual

Airlines

Delaware

.|_

Recommendations

Britain".

Stay

Resort

44
Field

Interest Rate Has Come

Einzig: "Ineffective High

From Washington

Uranium

Pacific

—)— 22

Bookshelf

Man's

Businesss

TMT Trailer

;

Bank and Insurance Stocks

lanu,

have

City & Denver

to Hold 45th

Annual Convention

Published Twice

For many years we

Lake

Prominent Group of Speakers

Investment Bankers Association of America

living the Great Experiment

Women

Place
HE 4-3634

•

—

eration

Exchange

Jersey City

Francisco Airport Improvement

Committee

Teletype NY 1-4643

DIgby 4-4970

Bank "Letter" Sees Record Public

First National City

Public

Policy

Money

If my
Sure, you've read a lot about
assumption is correct that these tight
lately—and everyone
battery syringe is required.
the Fabulous Fifties

Revenues

...

Our

been

so£t

The

This is

the cellar.

into

falling

—

Street That Was-r-Hubert F. Atwater

New Ways

NSTA

which have

the springs

kept the business "elevator" from
wh

big, new and
which is being meas¬
in

ured with an eye dropper

are

REFINING
—

this is not academic theory.

All

this

thing,

CORPUS CHRISTI

...

Dealer-Broker Investment

urban

Buying Stimulus
one

LEASEHOLDS

Gottlieb

Crop Situation Above Water—Roger W. Babson_

—Melvin

C6AST

GULF

13
Freight Haulers

Investment and Growth Outlook for Highway

Comings Events in the Investment

important

For

STERLING OIL

Forces Acting Upon It

4—Walter Maynard

ment.

important buying op-

____:

The American Securities Industry and

;• — M.

COMMONWEALTH OIL

Local Mergers

Deal With

f°rced to buy labor-saving equip-

referred.

to which I earlier

of Bank Merger Law to

explore—as well as attempt to answer
two questions whicn
have
been allocated to me: namely, the

ages

and Price

Output

Determining

f.—Philipp H. Lohman

Women Investors to Hear

Spenders

to ".

I'd

theme

the

KENILAND OIL

vicious selectivity.
This

BARUCH10

Badger.

economic

and

social

attitude. Pension plans, the emP^asis on a higher standard of
living, the $6-7 billion distributed
annually in Social Security benefits—cannot be under-estimated.

applied—again in the popularly accepted meaning of tne
term. Rather, it seems to me that
this has been, and still is, a year
of "baby" bull markets and "baby"
bear markets. It also has been-—
and I believe still is—a year ot
be

can

tnan

changes of the past 20 years mean
an entirely new
consumer buying

Lurie

____

Situations

basis.

vast

NEW YORK

WHitehall 4-6551

V:•

label

rather

long-term

short-term

sely, however,
the

society—and his planning
a

WALL STREET,

Telephone:

profes¬

is something new

manager

of the

sense

of scientific

era

business management. The
-

accepted

us!

Obsolete Securities Dept.

and Their

Policies

Our

American Means Growth for the Long Pull Ahead

This is the first

are

wider

employment,

prosperity.

strongly doubt

Equator:

to develop new

create new mar¬
And Research spells bigger

white. In other

Changes
4

the

v—John Ryan

Lucky."

mar¬

period

Wholesome

Difference in Past and Present Tight Money Market

point: We are in a new and dif- lowing
new
conditions
which
ferent period—one which defies a should make us all sing the song '
"pat" label. This is an era of spe- Judy Garlan does so well. "I'm
cifics—a

Joy Manufacturing Company—Ira U. Cobleigh

mar-

leave and think about the fol-■

you

Shaped

Reception—A. Wilfred May..

—Sherwin
Make

Ahead

Foreign

ket in history.

Scene

Eccles

—Arthur A. Smith

until "

over

enjoying safest high stock

we are

Business

who sold

man

obsoletes

pretation of Reserve Board's "tight money" policy, which will
extend the boom in lieu of ending it. Predicts business will
end 1956 in blaze of

his

How to Tackle the Problem of High Employment Sans

Inflation—Marriner

The

The. Outlook for Business and the Stock Market—S. B. Lurie

unprecedented economic buoyancy and resiliency; and freedom
from former cyclical changes. Cites redistribution of income
into hands of major

(1635)

The Commercial and Financial Chronicle

account

exchange,

Record

the

—

fluctuations

remittances

for for¬

eign subscriptions and advertisements
be made In New York funds.

must

Direct

PHILADELPHIA

Wires to

DENYER

SALT LAKE CITY

The Commercial and Financial Chronicle

(1636)

available

services

How to Tackle the Problem of

The

total

sented

By MARRINER S. ECCLES*

banks to extend

mercial

Federal

Reserve

upon

These

funds.

former Federal Reserve head
sets forth an inflation control program, after noting current
4% annual price inflation, which includes: continued Federal
Reserve restraints, coupled with selective controls; reduced
military and foreign aid; Federal spending; wages to follow
rather than leaid productivity increases, and cessation of unjus¬
tified price increases of big business. Mr. Eccles quotes Senator
Douglas in asserting inflation imperils capitalistic democracy,
and, in showing "something has to give," poses the paradox
that money growth cannot stop without stopping economic
growtn and, yet, to allow money to grow would induce inflation

securities

ment

when

market

the end of

Its

total

taken

opinion,
when

means

The

total

initiative

record

insurance

tic

poli¬

heart of our capitalis¬
No financial in¬

statement

completely

recognizes

that

balance

successful

en¬

lightened understanding and in¬
telligent action on the part of the
government it would be impossi¬
ble. It also recognizes that mone¬

the

American peo¬

tary policy on the part of Federal

ple.

They are
the greatest

Reserve

recipients of

cipal tools available for achieving

the public's
savings,
as

this

well

ital

which

cap¬

success

dustry,
tive.

iViarriiier

sound

ment

ed.

money

greatest

means

impera¬

ner

money

deflation must be

This

will

also

assurance

maximum

for

the

employment

and

the

since

manage¬

policy

functional

compensate

the

man¬

for

the

will

should not

element

every

grow

nor can

adjustments

occur

the

ex¬

the

same

all the needed

promptly

and

automatically. We cannot take for
granted
the
challenge of high
level prosperity.
Must

maintenance

Balance

Money and

Production

*An
Life

that

proportion,

pro¬

of
a
high
employment, which im¬
plies a high level of production.
This act was a revolutionary step
and a public recognition of the

51st

economy

of maintaining

the Employment Act of
this country has recognized
government's
responsibility

level

have

debt

fiscal

However,

pect

Since

the

monetary
and

omy.

avoid¬

give

effect

the

banks

reserve

and

enabling

the

by Mr. Eccles before the
Meeting of the American
Convention, Chicago, Oct. 11, 1956.

crease

Product,

the

and

secure

between

keep
the

proper

money

tal

ball"

holds.

But

plus the

growth,

wise

flationary
The

use

this

expressed

velocity is

supply

money

turnover

mar-

ket,

inflationary 'pressures
velop, and vice versa./, •
The

Gross

present is

National

Ap¬

proximately 20% of this total is
used by the Federal Government
and

state

The

remaining 80% must provide
all

and

local

consumer

government.

goods and

serv¬

ices, as well as capital require¬
ments, including housing of the

finance

all

capital

faith

better

from

the

None

and loan

companies, time deposits

commercial

banks

and

direct

investments made by them. In the
case of business it consists of de¬

and

retained

depletion,

earnings.

Inflationary
our

must

seem

Our

massive

demands

the

result,

the

with

tionary
rections.

great

kinds,

many

well

for

the

credit "of

and other
*—*—

Private leased

SAN FRANCISCO

•

PORTLAND

radiotelegraph circuit

LOS ANGELES
•

HONOLULU

•

American Stork Exchange

use

spectacular
of

existing

•

NEW
AND

YORK

liberal
•

OTHER

CHICAGO
PACIFIC

•

BOSTON

COAST

♦

CITIES

SEATTLE

we are in for trouble
because it. will happen
again."
I have heard it said
and have
read it occasionally—that there is
—

and

ally,

our

cover.

insur¬

own

guides

the future
knowledge of the

of the

and

present;

human

keen

nature,

good, common sense.
add political insight too,

some
can

because

the

role

present.

have

between

heard

government

day cannot be ignored.
an

economic

♦An

address

(It
deter-

ers

before the
Annual Convention, Mortgage Bank¬
Association
of
America,
Chicago,

Oct.

43rd

Mr.

the

ful

consumer

housing terms

purpose

our

Continued

While

credit and

serve a use¬

economy,
on

they

page

same

thing repeatedly since 1945.) The
implication is that the future will
repeat what happened in the '30s.
The

prophets of doom have had

bad

they

record."

And

going

are

don't

think

improve

that

either.

record

Here

are

some

the

circum¬

stances of 1956 that either did not

exist

1929

far

are

different

from these
does

existing in 1929. Time
permit a full discussion

not

each.

shall

leave

intelligence

good

the

fill

your

be¬

lines.

Bulwark

Unsavory

Smith

Defense

Spending

The world

(1)
1929.

There

danger

great
where

munist

Budget

time

freedom

threat

that

comparable

Federal

at peace in

was

today.

any¬

the

Com¬

were

the

appro¬

priating only a meager few mil¬
lions for defense, and we had a
standing
army
scarcely
large
enough
than
000

called

constabulary.

much

"Weapons

tively

simple

war

of today.
attack

air

structive

devices

ESTABLISHED

rela¬

compared

Danger of

with

Continued

1956.

137,-

in 1929.)

were

1929

with those

(Only

in the regular army

sneak

great

1929

incident¬

(And

his

cannot

similarity

the

such

atomic
on

page

1894

STATE AND MUNICIPAL BONDS

LOCAL STOCKS

I believe that

to Honolulu

risk

come

therefore,

CORPORATE BONDS

inflationary pressures
developing more than a year
ago, particularly in the field of
consumer
and
housing mortgage
-credit, proving that the people
were,
trying
to
improve
their
standard of living faster than the
total production warranted.

leoding commodity exchanges

best

who

must

all

These

Son Francisco Stock Exchange

carry

our

people

di¬

were

Chicago Board of Trade

sure

This is evidenced by the

demand

increase

infla¬

funds.

•

faith

consum¬

country

from

pressures

which

understanding

produc¬

marked

BROKERS

•

to realize how

can

accurate

past

Pressures

people, this 80% does not
to be enough to meet the

With

Midwest Stock Exchange

not so

kind

ance.

are

sup¬

confronted

•

too

Exchange

come

among

some

prosperity is always
by
depression;
and,

followed

great

insurance policy to

Honolulu Stock Exchange

this

outside.

buy

well

ing public and the capital market.

Los Angeles Stock

what

individual control

our

—much

present

Memberi-

and

that

Come

stubbornly to the old be¬

tween

Complete

■

carry?

opinion- about

have

INVESTMENT SERVICE

Exchange

contracts?

make

than

beyond

ors

our

New York Stock

the

anything else.
All mf us,
regardless of kind
of
businesses,
are
affected
so
greatly by so many external fact¬

Dean Witter
&Co.

budget?

determine

what

number

lief that what
goes

sensible

himself

but

adhere

Not

' ~

down—that

country of ours—and I
sure

acquaintances

successfully.

Sometimes that opin¬
ion is based upon little more than

million

LEASED WIRE SYSTEM

business

inventory

some

You

PRIVATE

All
.

...

could

practically a
fully employed labor, force of 67

DEALERS

run

Need

Down

; How could he manage his opera¬
in general, if./ he did not

requirements,

tion of all kinds and

DISTRIBUTORS

including housing, and is repre¬ look into the future. We might
hit it right, but we can never be
sented by "Individual and Busi¬
ness Savings."
In the case of the perfectly sure. There is no crystal
individual, it consists of money- ball. It is not that easy. Uncer¬
put aside in life insurance, pen¬ tainty of the economic future must
sion funds, savings banks, savings always remain a risk of business

Even with

—

future.

What Goes Up

used

goods and services is available to

longer

changes in circum¬
Changes often preclude
repetition of history. ;

exact

about

portion of thp,80% which is important it is to be alert to any
and
all
pertinent
developments
to
purchase consumer,

The
not

could

amount

that

private economy.

rest

will do, be¬

some

ati lay ahead?

running at the rate of

course,

brings

stances.

something up¬
base his plans.
How
:

could he make

have

Product

doing

Americans

Time

de-\ tions

about $410 billion per annum.

for

which

How

and services available to the

He must have

Smith

....

When the supply
velocity exceed the goods

itself.

supply
and the

How

cause

his

Arthur

the

obliged

could, not

important

ignored.)" Of

helps to know what the

the world

he did not,

the

it. 5

the

true, in-,
develop. '

pressures

has

opinion

reverse

not.

;

If the

minant to be

future

.have

of the money supply

use

the

^accordingly, otherdeflationary pressures de-i

velop.

the

econ¬

increase

must

that

seen

must real- s live unto
ourselves alone.
ize that every
There is no substitute for ex¬
business man- perience
in
forming judgments
does
it
too, about the future, but one must al¬
whether
he ways realize that the
past is not
realizes
it or the sole
guide to what lies ahead.

dynamic economy it?

our

broken, billions spent to catch

♦

our

precluding the prospect of a
(1) long run defense program; (2)
—

careful-reflection

least four to five per cent per year
maintain employment.
There-

what

National

ply and its use, and the goods and

UNDERWRITERS

find

■<

fore,

due to:

have chided

men

prices,.

past

looking into the "crys¬

Gross

stable

preciation

balance

omists for

productivity dlie tof Technological dev,el7 *
opments, thereto must be
an
ifi- '

address

Business

result of the growth of the

problem in connection with the
maintenance of economic stability

Annual

labor force and increased

The most essential and difficult

system

are

deferred public works, and undreamed
opportunities provided
by science in the industrial sector.

known

are

of the three above methods.
As

the

struction records

Money"

banking

from

boom and bust

serve

depressions

inflationary and deflationary de¬
velopments in the private econ¬

duction.

.1946,

and

should

government in

having a
uniform
and
steady purchasing
power. To accomplish this, infla¬

tion and

use

c.ccie:>

in¬

This

marked

learned, by hard experience, how

the

permitted to
under peace-time condi¬

tions.

continued

insurance

booms

should not

develop

funds.

been

has

past

serious

Therefore, for
the

policy

objective.

The

greatest
.source

fiscal

and

part of the Treasury are the prin¬

the

funds

Powered

the

should

inflation and deflation is

between

in¬

terests

must

difficult and without the most

repre¬

the

sents

inflation,

from

Government

Federal

'This

so com¬

pletely

recession

circumspection.'')

democracy.

dustry

deflation

monetary, fiscal and house¬
keeping policies with skill and

It is apparent from these figures
at the very

have

the

seen

might

unshackling of gold standard restraint over
currency-managers,
and changed economic intervention
philosophy of government;
(3) business realization of depression,
deficit-financing, and
Communist victory
consequences; and (4) relative absence
of speculative excesses.
Mr. Smith expects residential con-

district.

reserve

"High

distant.

pursue

cies and annuities.

that the life insurance business

threat

the

nor

the

$5^2 billion in benefit payments
life

a
high level economy like
neither the threat of infla¬

arates

American families received nearly
their

We live in a
world in which economic changes
are
continuous and many.
If our
economy
is
to
advance
firmly
along the narrow road which sep¬

billion, and

from

report

be very

can

annual

own

our

their

finds

midst

economy

whole, on the basis of present re¬
requirements, to loan or in¬
vest approximately six dollars for
every dollar of Federal
Reserve
funds made available through any

tion

115

aggregate
income
of
all
S. life insurance companies

$16l/2

from

borrowing
bank

through

the member

who

differentiating

inflationary de¬

velopments);

commercial

ours,

people;

reached

and

only be used
to halt serious

necessary

deflationary

the world.
his last eco¬
Congress,
re¬

President,

"In

$90Vz billion; seven out of ten
Americans owned life insurance,
which

should

of serious recessions is

prospect

bank Vice-President

"the

requirements of member banks
(a drastic method which, in my

quired under this act, said:

than

subtle

distant

even

of tremendous economic
growth and expansion" which
last 25, years.
Critiques five bulwarks

open

country but thioughout

j
were

the

The

nomic

1955:

assets

million

place, not only in

(this

method); By the Fed¬
Reserve
reducing reserve

eral

great economic changes which had

realize that at

Not

Dallas

flexible

These

indicated

By ARTHUR A. SMITH*

Vice-President and Economist, First National
Bank, Dallas, Tex.

provided by

Through the purchase of govern¬

couraging I economic illusions,

Insurance, next to banking, rep¬
resents our gieatest industry.
Its
size and
national
importance is

can

Reserve System:

the Federal

Expressing disappointment with both political parties for en¬

Shaped by Wholesome Changes

credit is

dependent

First Security Banking Organization

Chairman of the Board,

com¬

credit, whether pub¬
The ability of com¬

private.

The Business Scene Ahead

repre¬

and originates from

mercial bank
lic

Thursday, October 18, 1956

market.

.by, .dp/n^nd, deposits *and

currency

[igh Employment Sans Inflation

the

supply is

money

RHODES-HAVERTY BLDG.

ATLANTA 1, GEORGIA

WALNUT 0316

LONG DISTANCE 421

de¬

and

184

Volume

-Number 5578

% r.

» V

The Commercial and Financial Chronicle

Steel

The

Electric Output

Carloadings
Trade

Retail

State of Trade

Commodity Price
Auto

and Industry

Index

May reports
well

however, fractional losses in the output of electric power, lumber
>
and coal. Compared with the similar week ofs1955 over-all pro-—

cial

Mr* May

/ day, last. - >
■/*;;,//■
/
Despite the, long strike of steelworkers in mid-summer,. the
eight month figure was only.about -1,500.000 tons short ot the
.

a survey

1 thorized

earlier in the year, under

the

cluding anti-inflation action.

Editor.

J-

V 1

promise of

the

Latin -America ' confirms

strictures

Bank's

No-World

of the

the light

(in

reforms in¬

some

o v e-m e n-

difficulties entailed in rich Unc„e'; tioned) considerable of these funds
"Sam's universal, aid-giving,
For: are to be devoted to

■:

reorganiza¬

Van on-the-spot
./actions f

of the re-

survey

ro m

•

ing far

the week ended Oct.'6, initial unemployment claims^

But

■;

Brazilians:

the

free

hand

C 0 B L E I G H

being confined to non-competitive
United

States

suppliers.

Complaints also

that

heard

are

ColumnM, The Commercial and Finan~
cial Chronicle, anU Author of Winning

14,000. below, the 196,000 reported for the like sweek pf 19^5.;.'.///
At the same-dime, the Bureau added, the number of auto
workers laid off declined 13,000 during the weeK ended -Oct. 6

total

Recalls in the seven major auto producing
while 11,000 were laid off for model

184,000.

amounted

the

laid

off

Agency

that

noted
1

since Jan.

and

not

the

total

recalled.

yet

since

off

left the

Insured

bountiful

due

the

for

the

who

year

found

have

to 914,000

week

1955

during the

In .The

steel

producing
about
was

change

better

the

for

November

covering

companies

auto

with

compared

shipments,

"The

states

automotive

Sit could

the

forerunner

much

heavier

orders

look at the

new

come
,,

models.

This

would

have

producers

with

pace

complicate an already-touchy situation for the"
benefit of significant automotive business,

beeir

all

has been surprisingly

strong

city

of gondola

nearly

shortage is growing worse, i Scar¬
pile up finished steel at

car

docks.

is due

heavy all-rail shipments of iron

-Unfortunately,

struggle to offset last summer's
next spring,

age

and the

England
to

buy

ore

Only

chance

United

States

producers

steel

Europe.
would be

Continued,

page

Dissatisfaction

situation

The
sents

Brazil

Investors

have

now

market

powerful

the

SECURITIES

TOP

statistical

market

of—this

stocks

vital

which

investment
have

medium.
from

advanced

featured in the

first

REVIEW

for

THE

that

evidence

capital

gains

Since
289%

magazine to

the

and

March,
to

keep

over-the-counter
that

OCSR

1551

much

OVER-THE-

with—and

has

ahead

featured

1447%- since

they

TEN
were

magazine. Here's the record.

the

World

her

TUIQ
into

AT
A1

Featured

Company
Electronic Associates,

•

DPfftPn
lULL-UKLf

Cross

nc
ur

Porter

Co.

the

additional
for

funds", made

available

electricity and the
(all exclusive of
$200 million available in a re¬
volving fund
from a group of

steel

industry

banks).
Togetner with
the World Bank to¬

taling

34.50
63.00

1112

1447%
,

ap¬

from
with

$375

long-term financing of specific

projects

Inc.

Bid

$58.00

2.75
5.20

(Pa.)*

credits

$3.75
.

commer¬

million
Export-Import Bank,

Ptc.

Rec.

in OCSR

inc.*.....

Bank's

totaling

loans

two

proximately

American

Price when
I nnif
L.UUIY

dated

COUNTER

repre¬

of "beef" at
assumption of U. S.

the

domination

STATISTICAL EVIDENCE Thai The

secrrities

Brazil

cial debt arrearages were consoli¬

OVER-THE-COUNTER MARKET Is The
TOP MARKET For CAPITAL GAINS

1154

from

$194 million
up
to that
time, the proceeds were used for
purchase of capital goods from

the

American-Marietta Co.*.....,...

JIMI

ICTPn

OIUGIYO

i
-

5.00

53.50

970

Riverside Cement Co. Class B...

QTAflfQ

10.37

101.00

874

4.50

Welex Jet Services*.™.

million

403
419

Black's

institution

AVERAGE

5.40

Don't

you

REVIEW,
-

and

OWE it

You

can,

only monthly

departments,

Service

for

broker

data

reports.

Send

unlisted

hundreds

$4.50

OVER-THE-COUNTER
DEPARTMENT

P. S. for

SECURITIES

$45.70

289
735%

(splits and stock dividends

TODAY

stocks. Contains special features
companies. Also Free Literature
for full year's subscription to:

SECURITIES

JENKINTOWN,

additional $4.00

HANDBOOK,

you

guide

can

obtain

almost

cooy

559

REVIEW
PENNSYLVANIA

of OVER-THE-COUNTER

unlisted

corporations

self in

lending

its

$17

Mr.

1153

has

found

—

impasse, steadfastly re¬

and

Gain

roles

the

Bank

ing

the

during

that

exceeded

follows the

fusing to extend credits in the ab¬
of
a
thorough
financial

ing the rail¬
road system.
On the other hand,
the Export-Import Bank, follow¬

Eisenhower's

ing

President

cial

commendation

schek

government

friend

July
of

and

extended the

$151

•

valuable

million

the

ally,

offi¬

Kubit-

good

generous

late
sum

credits,

58%

the

total

Brazil

borrow

activities

the International

lished

to lend

poses

Bank

was

Execut've

MAY,

Editor.

Chronicle,

Financial

and

The
says:

absolutely unique clarity, Ira U.
Cobleigh makes a vital contribution to the
welfare
of
everyone
concerned
with the
handling of monev
.
.
most constructive."

'"Wiih

MORGAN,

EMERSON

recommend

and

while

keen

Investor

with

magazine

order.

and

develop

and talented

authority

yours

you

privilege

Return

The

send cash

guaranteed,

whether

continues

subscription

your

writer."

subscription

Three-month

FREE!

estab¬

How

Ind"pendence. Ira U. Cobleigh

Financial

Chairman,

Borrd

Exchange,
says:
"I
To Gain Security

Stock

Angeles

heartilv

for productice pur¬

reconstruct

rich dividends!

WILFRED

Commercial

institutions

Thus,

pav

reflects a
opinion, the

the? two

Financial Inde¬

Security and

Gain

ing their money grow . . . it is worth many
times its $4.95 price, an investment certain

whose right to

policy

retirement.
To

buying.

complementary.

are

to read ard re-read, to
give to friends and relatives. Valuable as a
refresher or as a handy reference work
i
invaluable as a step-by-step guide for all
who need a sound, practical plan for mak¬

exceptionally

difference

Port¬

Mr.

How

Normally, and in contrast to the
situation in

...

Over-

Planning

pendence is a book

borrowers,

amounts

Profits

Pay

of Taxes . . .
(Suggested

Impact

thfc

able

paralleling the pro¬
portion of funds put by the United
States and U. S. investors,

Investment Conk-

the investment
Cobleigh presents an over-all
programl of long-ranee investment planning
guaranteed to lead to security and profit¬

pur¬

States

Bank

Hobbies

Your

closely

very

Unlisted

folios)
.
Market Adages.
/fMr covering all aspects of

or emergency

United

the

International

keen the book, op not.

you

the economies of its members; and
the

"Ex-Imp" for financing U.

political conscious¬
ness; it too can extend credits for
development purposes, such cred¬
its having totaled $367 million in
exports

the

FREE

DAY

I
1

HAWTHORN

BOOKS. INC.

Fifth

n Plea-

HOW

Misconception Re U.S. Domination
The 61%

proportion of the World

Bank's funds coming from the U.S.,
combined
the

with

this

spilling-over

the

centuates

tendency

naturally ac¬
countries'

debtor

ascribe

domination

over

international

of
and

the

entire

lending

field

send

most of the

individual coun-

Ira

Cobleigh's

I will

plus postage; otherwise,
return the book and owe

SECURITY

GAIN

INDEPENDENCE

keep

the

book,

$4.95

nothing.

□ Check

may

will

book

■

decide

and

for
examination. If after two weeks,

AND

send

j
!

$4.95

for

come

enclosed.
me

The

POSTPAID

addition I will receive FREE
trial subscription to

three-month

j The Investor.
J

policies

operations.
*A

free

New York 11, N. Y.

Avenue,

lending provisions between

the two institutions,

Q-129

Dept.

FINANCIAL

EXAMINATION!

with

past year-and-a-half.

development

top of $50 million au¬

Stocks

Investment Advice and Advisnrs
and Mineral Rights . . .

Financial

picture,

practice of fur¬

the amount of supplies

ally

chased

Royalties

Softening

situations, while the International
Bank

Appreciation

for

Speculation' . ^ . Convertible Se¬
Stock Warrants .J, Markets—

Oil

All

Com¬

...

Making

The

money loaned by "Ex-Imp" is
strictly limited to the nurchas* of
United
States goods or services,
excepting in special

,-i

Stocks

the

Stocks

—

Primarily for Dependable Divi¬
Growth Stocks for Long Term

and

Listed

panics

decade

the

curities

has
former by

past

.
.'Selecting
Common
Sense
Institutions Bay

Independence

Your elf
.

Sheer

for

t.ie

Export-Import Bank, whose lend-,

sence

only popular-priced manual in the field.

dends

Preferred Stocks

for

Stocks

Methods

the

Institutions

International

it¬

housecleaning, inclu

yourself to get in touch with this GROWTH STOCK
subscribing
to
OVER-THE-COUNTER
SECURITIES

magazine

current

21.00

$5.47

PRICE

622

extension

467

33.00
35.00

-MARKET?

the

32.50
25.50

6.50
6.75

-Adjusted for stock

Since

4.50

y National Homes Corp.*.
! IN OCSR

States.

...

Permanente Cement Co.*.

£/-/..

the

Transcon Lines
-Lithium Co p. of America.......

•

FFATIIRFn

difference

The

the

Lending*

international bidding and
international procurement. Actu¬

special kind

(via

policies).-Jn ,1953

;

Program

avoid

Functions

Twin

21/2 times, should be realized.

Four

Collateral
mon

Definitive

of Ira U. Cobleigh's
in every

participation

successful

generalities. It names soccific stocks, bonds,
companies, advisers and investment firms.
As; up-to-the-minute
as tomorrow's
stock
quotations, it is designed to be of maxi¬
mum, practical assistance,
as these typical
chapter headings show:
bun-s
lor
Coupons,
Conservatism
and

and

South

phase of investment and finance. As might
be expected in a work by this outstanding
authority,
How
To
Gain
Security and
Financial
Independence avoids
the usual

thering

Point

the

soecificaUy devoted

this single

years

Stocks

from

criticism; but in
view of. the. negligible
expend¬
iture .totals,
the approbation is
strictly "qualitative."
tirely

boat strike arj^i avert a short¬
/V'/

are starving for steel and
American mills. They do not, however,
long as the current tight market persists.
r

have

support

investment ever

type

long-term basis:

book

accumulated experience

currencies.

re-

for Technical Assistance seems en¬

logjam
steel producers
car

Continent

happy
a

ore

freight

the

part

this trade authority reports.'

outlet for

good

political

loyal

is forcing mills to

cars

shipping

and au¬
finance and
published.
volume, is packed the

most comprehensive

thoritative

America, with repayments in local

democratic, interests.

Meanwhile, the freight

INDEPENDENCE
The

Inter-American bank for lend¬

ing

constitutes

recipient;

really seem

operating at capacity and above to keffefc ' /.aggravating to capital - .needing
a losing battle// countries who are mindful of their

detwahd

recommendation.

aid

lesiii-

also

Atypical "needles" of this category,

major industries,

accusa¬

heard

to want is the Marshall Plan

demarKl.v^^di^ products it has been

The- strength of

Tito

credit

mate

without

Even

evident

Administration's

our

Paulo

What the Brazilians

Bank's $75 million to India's Ta.a
Iron and Steel Co. of last June;
endorsement

mills.

price-fixing

witn

affiliation,

coming after' the largesse to
the Peron Government; the World
.

the buying public gets its first good

Sao

charges that we had changed our
minds in walking out on a coffee

tina

orders

FINANCIAL

Here,

tions.

This *

meta|working weekly, this week.
once

Communist

"blackmail"

mentioned

troublemakers
appeasing
from Argentina
do^ far-off Yugo¬
slavia. The recent loan to Argen¬

national

Age,"

Iron

com-

AND

SECURITY

late; that our

spending we must either fish or
cut bait; in addition to the afore¬

thus

taking

are

of their normal tonnage of sheet for December.

nor

republics

favor those who blackma 1

thi^ week mills in at least one large
that' major

report

center

100%

industry

too

is "disjointed" and unpre¬
we are neither black
white; that in international

our

too little, or

largesse is

dictable; that

that

effect

American

threats

little

GAIN

HOW

policy

the

'plaints which at least have some
justification.
one
hears
the
Prominently,
plaint that we discriminate
to

828,000.

was

In-

may

too

are

May

late,, there emanate from the

South

other jobs

Sept. 29, the Bureau reported, noting the decline was
to recalls in the auto and aooarel industries. The

chiefly

total

first

too

or attaching
strings to the amounts
be satisfactory; that we

picayune,

are

giving nothing

many

that
Wilfred

sympa¬

that

too

thizers

market.

unemployment dropped 30,000

ended

week

the

labor

attitude;

hue

Tdia's

is the
The figure is

184,000

not, it continued, an accurate measure of unemployment in the
industry, since it doesn't take into account the number of workers
or

cry

Make a
:Street and Keep It
Howto

corn-,

j ustifiabry

coherence"

either

mad-

ning

voiced

However,

laid

/and

24,000

changeovers.
number

f the

lack

economic-financial policy and

our

^reas./; Ii* vlieu /

In-i
Killing in Wall,.
Your

Expanding

Street,

Wall

•

there

IRA

who

buy where
they want, in the most-advanta¬
geous
world markets instead of

■; ■;

V.-y

•

Export-Import lending does

satisfy

want

than

railway system under
holding company, Rede

new

not

in- kind

the

Ferrovaria Nacional.

...

19,000 lo .182,000, according :tp ith/e/Bureau-of ^hrtidoyfn^Htr;
■/■degree from
.Security. -• /
/V ~. %-//<:■/ 'V'"}"■/'/..
V\ / -the
"crabbing"/:
The Agency said increases,'which reflect new layoffs among
so
prevalent'
workers cove-red by Federal and state insurance programs, were\
in other world
reported by 38 states. However, the, volume of pew claims was *
rose

tion
a

•

faction differ-

page

Important New Book

independence and international goodwill.

recently made

55,294,356-ton total for the comparable part of: last* y^a^''/S^':v^,;:'
government
The shipment total for July 1956 was 1,288,988 tons.. In August
;
officialdom to
the tdtal increased to 5,539,915 tons. Comparable figures for. July'."-"
.lay public, reand August last' year arp
'^^.SO^p^ tons ^hd 7,053*615
/veals dissatis¬
spectively," the Institute pointed out.
^
v;' ./"/

states

Announcing...

demonstrating correlation of finan-

tably

totaled 53,821,525 net tons, according to an an-1
by the American Iron and Steel Institute on Satur-

During

us.

aspirations country by country.^ Cites

—The

products

nouncement

confronting

difficulties

other

in eiaht Latin American countries

•%■//-

During the first eight months of 1956, shipments of finished
steel

and

criticisms

$30

needed

aid operations of various kinds.

our

and

misconceptions

Venezuela and Panama

getting

products and paperboard, total industrial production in the period v
ended on Wednesday of last week showed gains.' There were,
•

reactions by Latin American officialdom

citizenry to

Details

Spurred by increases in the output of steel, automobiles, food

higher.

cessful

million from New York banks for

Continued
Mr.

Failures

Lists

continued

change reserves, has been unsuc¬

Production

Business

duction

By A. WILFRED MAY

Index

Food Price

tries, I found a variety of specific
complaints.
'
Uruguay, r.w h i c h is suffering
from
a
shortage of roreign ex¬

Foreign Aid South of the Equator
—Our Policies and Their Reception

Production

(1637)

NAME
STREET

J
L

CITY

|
ZONE

ST ATE.

|
i

The Commercial and Financial Chronicle

(1638)

Continued

From

Washington

Ahead

—and

for in

apparent that both sides are getting the jitters. The polls give
margin to Eisenhower but none that I have seen is broken
down by States. It is my opinion that it is going to be one of the
closest outcomes in history.
The remarkable thing to me is that the
Democrats have seemingly made such a come¬
back. Nov. 6 may show that they have been

our

much

noise

little

and

the

Republicans

had

the

party

that

years

ago

years

for

viction that Eisenhower

afraid

this.

answer

will

But~it

over¬

will

increase

return

rather

The

power

that

prospects

has

moved

Government

has

tried

hard

made

some

are

direction

should

voices

that

hardy

once

the

States Righters,
can
scarcely be heard in the din. Mostly States Rights center
around the desegregation fight in the South.
States Rights as
a matter of principle
seems to have largely gone with the wind.
There

group,

little left to the old desire to get the govern¬
business, out of agriculture, out of the people's
hair generally.
You seldom hear the tirade against bureaucracy.

ment

seems

out

Government

and

government

businessmen and farmers
used

seems

welcomed

alike, and the rank and file have gotten

it.

Republicans are crying to high heaven that the Demo¬
promises are impossible of fulfillment but the mood of a

crisis"

new

that

Corporate

financing

hence

weeks

concrete

rather

exists

cur¬

The

tive

the

itself

most

the

later

been

will

doing additional things for the

rent

short, it's to the left

from
It

which

there

They

seems

are
no

moving, caught

who

men

way

study in human nature to

responsible

men,

have

been

cur¬

;

escape.

the

see

number

caught, in

tone,

the

time

all

pagne—not hold

own

via

ice

The

supporting the Democrats with their money and their
The Democrat charge that the Republicans are the party
of big business is ironic when
you see the number of big busi¬
nessmen happily
carrying the Democrat banner.

Business

Re¬

Whether

they been

the

Republicans

would

have

been

better

off

had

Republican is hard to say. But it is a fact that
it is quite a problem for the
average voter to tell the difference
between the two parties.
more

good
end

into
in

pro¬

thing,

year

lowing factors:
(1)

Farm

crease

the

The Security I Like Best
Housing
Administration
mortgages. For every

home

yielding 4V2%,

and

$10,000
mortgage purchased, the Associa¬

tractively priced from

tion

standpoint

issues

effective

Sept.

common

21,

1956.

stock,
From

Aug. 9 until that time, it had is¬
sued 2%; and prior to
Aug. 9, it
issued
each

stock

common

stock

date

.jnsurance

have

acquired

this

stock

They
through

their sale of mortgages to the As¬
sociation.
Since
these

companies

tions,

and

which

mortgage
organiza¬

constitute

the

either

tax

purposes

they need the funds
of

dispose

their
of

because

in the opera¬

the

Consequently
$102

per

appeal

desirous

long-

nick

has

stock

same

this

connected

with

present

rpproximately $45

book

and
per

selling

billion

Tucker, Anthony, Day

'•

current

the

becomes

the

is with

Day,

Third National

Bank

High

;

(2)

Despite

Municipal Securities

DALLAS, Tex.—The firm
Intercontinental

Company,
Building

First
has

National

been

name

Securities
Bank

changed

share, and Municipal Securities
Company.

L.at

every

fact.

1 call your atten¬

all

that

mains

boom, the fact

re¬

times

price

earnings ratio today are less than
trny were in the 1930's.
(3) Basically, I think there is
difference

between

the

two

concerned

which will carry prices to vulner¬
levels
than I am a pre¬

Market

year

the

will

resolve

greater

credit

situation

two months ago.

good—

highs

grocery

did

soft

generation
of
security
In other words, the mar¬
declined because it was vul¬
—

because

had

reached

the
store,
and

locked-in

range
■

are

candidates

for

re¬

com-

nanies, 124
had submitted
in

cata
dctimidt

of
n

conducted

by the

each

five
1

bien-

surveys

Chamber

since

1947.

Fringe benefit payments by
this identical group of companies
$981

was

$167

showed

$819

1955,

than in 1953.

down,

the

survey

that

the 1955 average of
emnloyee included $254

per

for agreed

sions

employee

per

upon

programs of pen¬

insurance,

and

vacations

and

$254

holidays,

required

for

$145

for

(Old-

programs

Age and Survivors Insurance, Un¬
employment and Workmen's Com¬
pensation and others). $8^ for rest

periods, and $77 for miscellaneous.
Pensions Average 5.1% of Payrolls

Ninety-six per cent of the com¬
panies
surveyed
reported
pay¬
ments
for
employee
insurance,
.

with

payments averaging 2.1% of
payroll.
Payments
for pensions
reported

firms,

with

75%

payments

the

averaging

of nay roll.

5.1%

The

fringe

payments

varied

automotive,
rail, retail
steel

groups.

drug,
trade,
But

whole faces

similar to

(2) This is

broad

trading

1946-49.

a year

widely among the reporting

com¬

panies, ranging from less than 5%
more

than 50%

average

payment

payroll

20.3%

of payroll. The

1955

39.2%

was

per

payroll hour.

new

ceiling area—that the averages

are

buyers.

nerable

coal

think the market

present
ket

has

high market in the history of the

This

generalizations

to be misleading than
example, I think there are

number

—

This is the safest

(1)

you:

apt

not. For

probably

satisfactorily
force today than

when

1953.
t h

—

In conclusion, may I leave three

philosophy. Thus, the fact that

that

the

election decline.

started.

are

over

post-election rally

in¬
$99

porting

were

1955,

about

$819

employee

Broken

this talk

average

security

sin^e

legally
.

per

don't

event,

Industry has
plants—has to expand

the confidence

year

Price is the avid test of any mar¬
ket

averafmd

important than the label of

thoughts with
Safe

and the like—

party in power.
new

employers

pensions,
vacations, so-

technological changes
place within industry are

able

costs

yments

for

—

any

established

result in programs being cancelled
is a little like saying the World

business fundamentals

Now

elections

fact

States

benefit
—p a

vic¬

vulnerable

the

possibility of

Tucker, Anthony &

United

fringe

rallies

and Nov.

President will

Dept.

crease

market

—just to stand still.
•

building

the

Impact

b.fore

per

survey of 1,000 com¬
the Chamber of Com¬

victory.

philosophy.

before

was

the

lies ahead.
(5) Industry's capital
expenditures will remain high in

over

Research

least

Democratic

the

is $819

now

Economic

recent

that

likely to reach a new peak in
1956, and the consumer in a better candidates. The day has passed
position to buy goods than a year when a political label spcxi^a a
difference in economic
ago this time, a boom in soft goods sharp

was

fringe

showed

The

to have

Building.

(1)

taking

disposable income

consumer

jump

Average

tion to three considerations:

to nay

fiscal

road

show

the

sight

findings'
benefits'

survey

Secondly,

and

—

now

this connection,

which incidentally is an
billion operation
today.
(4)

Series

SPRINGFIELD, Mass.—Ruth
Kane

the

excluding

Commerce

costs.

popular uncertainty usually loses
market importance by the time it

fol¬

will
sales- in
1957.
(3)
Government
spending will increase about $3.5
—

think

re-elected.

Fears that tight money—the
decline in high grade bonds—will

(Special to The Financial Chronicle)

value

industry

1957.

Street.

With

there

little

Palmer, Pollacchi & Co., 84 State

that

common

auto

States

But I suspect the market

lose

reversed

car

United

t..an

discounts

Stevenson

hesitate

and

a luxury,
changed.-'the
enjoy higher

styles radically

With

Palmer, Pollacchi

become

With

Chamber

merce

will

comfortably in 1957 when
Bank Program is in full
(2)

Fringe
Benefits Completed
on

panies

decline.

into

•

has

Survey

higher

Septemberdecline

if
the
.True,
sharply between

program

capital gain possibilities.

business, they will

the open market will
bring.

stock, with

dividend

BOSTON, Mass.—Frederick Mit-

they had just acquired at the rate
of $100 per
share, for whatever

at¬

(Special to The Financial Chronicle)

ma¬

jority of holders, in many instances
prefer to liquidate their stock for

should

and

investors

With

companies.

for

principally held by mortgage com¬
panies, savings and loan associa¬
tions, banks and trust companies,

tions

term

$10,000 mortgage purchased.

The

and

those

itself—offers opportunity but
security. And the rewards al¬
ways go to the risktaker.
not

necessity rather than

appears

the

Election

Soil

operation.

life

one

tory—it

the

income

twice

event

due to fear of

been

won.

never

the

different than

six months before—no mat¬

party

re¬

But

success.

market is

less

For

majority

has

market

half

Market

stock

last

ber's

can

be much

the market

same

cham¬

carry-over

least

was

whether the

the

which

the

its 5-year downtrend and will in¬

Continued from page 2

a "strong
opinion, the impact

far

was

ter

Outlook

result

ended

ago—and

In turn, this

six months after the elections

quite
spring.
1956 will
blaze <bf glory—and the
will

period

represent

Thus,

the

think

This

better

year—par¬

employee, compared to $720 in
1953, according to Emerson P.
Schmidt, Director of the Cham¬

people expect.

cases

momentum
next

cor¬

strong wind

house.

In my

than most

Now, let's consider the business
outlook—which

difficult

months

con¬

largely

the elections will

the

are

energy.

that

over

-and

current.

than most bonus.

know

wind."

wake.

yield

elections will

wealthy

this

tide.

growth stocks

been

topple

in prices.
to

and

have

now

raises the question of

The bond market

uptrend

this

ease.

vertible-bonds
—

hurts

help

common

largely

—

small

The policy has

already reflects this

than

re¬

This is the frame-work—and

direction of

most

and

its

people.

excesses

now

Federal

yet it

They will increase their attention to the minorities,
is hard to see how they can give more attention to them
they have in the past.

The bond market competi¬
tion for equity
money now
has
largely disappeared. Most stocks

(3) Federal Reserve Board
policy has been to extend ; the

boom—not end it.

behind

pinch
—

must

finance

government

sand.
of

(5)

Boom

credit

means

Board

rected.

business votes. (2) Defense spend¬
ing will increase in coming months
—which

This

ticularly for the opportunist who
previously was carried along the

(4) The past' Summer's specula¬

many peo¬

They forgot that

ago.

business

serve

placency.

stocks.

which

Thus, I'd like to make three
points apropos the money situa¬
(1)

under-valuation, and the stronger
values

Extending

tion:

than

correction

He has to

unanimity of opinion
always a danger sign.

small

will

of the past Summer's
built-in—and built of

ple missed the-important buying,
opportunity which was presented
two

Part

flects

This is why

rently.

be¬

means

selectivity. It if were simple to
get
"fat"
financially there
wouldn't be enough "Slenderellas"
in this country.
Flexibility today
is far more important than com¬

warding in 1954 and 1955. Today,
agility and ability are the keys

environment months

that

not

probably

at record-

are

This

so-called

the

duPont.
And
I'd
rather
buy
Royal-McBee than Burroughs.
(3) This is a year to avoid "pat"
labels as though they were the
plague.
It is a year of vicious

both sides of

than

six

(3)

now.

the

coin

advance

intelligent speculator looks

think

price

ever

in tune with their realities.

getting too gay. In short, the next
change in credit will be in the

experience, and

than

history.

pur

loans

put their best minds to work

sophisticated,

buyers

out

whole which has kept most stocks

the

little like taking away the
cocktail shaker when the party is

their

days with the cyclical
likely to fare much better

here

gence

apparent

bank

force.

(2) There has been great diver¬
within the market
as
a

for speculative
in tne 1920's. In other

avoided.

credit

seems

now

The market today is domi¬

intelligent
fore

money

tremendous segment of our people seemingly is
well, let's try them.
The result
will
be inevitably
that the Republicans, even

they win, will have profited from

(1)

today.

are

had

new

five construc¬

are

considerations

nated by more

not

gram.

The
crat

real.

win.

The

tight

use

The

there will be no further progress
regardless of who wins in this election. There
certainly won't be if the Democrats win and after their ex¬
perience there won't be much incentive even if the Republicans
progress.

they

ahead—not backwards.

country

States..

strong

tive

Spring

were

something

the

Bargeron

they seemingly
an analyst than

Eisenhower

the

last

because

injected into the outlook.

particular, there

policy — and
It successfully

"brakes"

high levels

of the Federal

power

diminish.

than

the

some

that

seems

definitely to the left; that the
to

take

the

been

discounted

were

that the extremes

and

have the Democrats been winning
Why do they have the strength which

credit

has

the fundamentals

"credit

Carlisle

today?

its

than

Why
have

put

when

words,

this.

them?

Wall Street wrong!

not

invincible,

was

right

purposes as

years? The
facts are, however, that they have been win¬
ning State and local contests for the past
four years.
The Republicans, in their con¬
looked

—not

Board

merely re¬
flects gooa business—operation of
the laws of supply and demand—

for this resurgence

another

least

history.

Reserve

factors

re¬

growth stocks. I'd rather have Air
Reduction or W. R. Grace than

level where the known

average

favorable

today's

thoroughly thrashed
whose record of 20
they would be out

so
on

think

would

you

office

was

and

be-

ever

Also, don't overlook tne fact that

win, will have
of their lives.

account

one

Federal

nearly

of now,

if they

even

greatest scare

How does

Jour

substance. But

flexible than

Don't overlook the fact that the

the

ell

our

management

money

most
a

stocks

And the Stock Market

campaign having about three more weeks to go, it

the

past

18, 1956

shift in
place in the

[emphasis has taken

from

of the News

Octobei-

Thursday,

dox policy will be the
warding. For example,

page

The Outlook for Business

By CARLISLE BARGERON
With

from

when unortho¬

Highest payments

were

made by

companies in the North_East, fol¬
lowed

by the Western, East North

Central and South Eastern regions.
The

survey

grand

total

for

all

$36

billion.

estimated

fringe

employers

that the
payments

amounted

Volume 184

Number 5578

Commercial and Financial Chronicle
The

(1639)

V
*7

7tptv I*>sires

Kgg§;^;g;:g::^

-:,g.

Commonwealth of Massachusetts
6% and 2.90% Bonds
Dated November 1, 1956. Due November 1, as shown below. Principal and semi-annual interest

Treasury in Boston, Massachusetts, at Bankers Trust Company in New York, N. Y.

or at

(May 1 and November 1) payable at the State

The First National Bank of Chicago in Chicago, 111.

Coupon Bonds in denomination of $1,000, exchangeable for fully registered Bonds in multiples of $1,000 but not interchangeable.

Interest

Exempt from Federal and Massachusetts Income Taxes under Existing Statutes and Decisions

Eligible, in

our

opinion,

Legal Investments for Savings Banks and Trust Funds in New York,
States, and for Savings Banks in Connecticut

Massachusetts and certain other
r\

•

:ia\

-f

These Bonds, to be issued for various purposes,

'•

■

levy unlimited taxes

>--■

;

■

' y

of which its full faith and credit will be pledged, and for such

all the taxable property therein.
■
*'r. '

in the opinion of the Attorney General of the Commonwealth will constitute direct general obligations

of the Commonwealth of Massachusetts for the payment

will have power to

purpose

the Commonwealth

' !•

■.

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE
$2,350,000 State Park and Reservation 6% Bonds due 1957-66
sold to

yield 1.90% to 2.65%,

scale below

$55,250,000 2.90% Bonds
to

be issued for Highway Improvement, Capital Outlay, Beach
and Drainage and Flood Control Purposes
Prices

Prices

Amount

£820,000

1957

820,000

1958

2.05

820,000:

1959

1960

2.30

1961

2.40

£20,000

;

Due

Amount

2.20

C20,000

P««e

Yield

1.90%

1962

2.45%

1963

2,440^000

1967-68

l'i 2.75%

1969

2.50

5,470,000

1970

2.80

10,940,000

1971-72

2.85

2.65

10,940,000

1973-74

2.70

1966

820,000

$ 5,470,000

11,790,000

1975-93

gJJJ gg

„

Due

Amount

820,000

Yields
Price

Yield

820,000

Reservation

•

100 <ph<,>
2.95

(Accrued interest to be added)

The above Bonds

are

offered, subject to prior sale before or after appearance of this

advertisement, for delivery when, as and if issued and received by us and subject to the
"V*

The First National City Bank

approval of legality by the Attorney General of the Commonwealth of Massachusetts.

Bankers Trust Company

J. P. Morgan & Co.

Continental Illinois National Bank
and Trust

Company of Chicago

C. J. Devine & Co.

Harriman Ripley & Co.
~

~—

Drexel & Co.

F. S. Moseley & Co.

Coffin & Burr

Paine, Webber, Jackson & Curtis

of Chicago

Harris Trust and Savings Bank

Glore, Forgan & Co.

Incorporated

Kidder, Peabody & Co.

White, Weld & Co.

Smith, Barney & Co.

The First Boston Corporation

The First National Bank

Incorporated

of New York

Merrill Lynch, Pierce, Fenner & Beane

L. F. Rothschild & Co.

The First National Bank
Portland, Oregon

Stone & Webster Securities Corporation

Baxter, Williams & Co.

Barr Brothers & Co.

A. G. Becker & Co.
Incorporated

Incorporated

J. C. Bradford & Co.

Braun, Bosworth & Co.

Ira Haupt

& Co.

Alex. Brown & Sons

Dominick & Dominick

Estabrook & Co.

The Marine Trust Company

Reynolds & Co.

Clark, Dodge & Co.

Incorporated

Hayden, Stone & Co.

Roosevelt & Cross

Laidlaw & Co.

Lee Higginson Corporation

Shearson, Hammill & Co.

of Western New York

Tucker, Anthony & R. L. Day

F. S. Smithers & Co.

Incorporated

Wood, Struthers & Co.

Branch Banking & Trust Co.

King, Quirk & Co.

Spencer Trask & Co.

Incorporated

October 18, 1956.

—

€

The

(1640)

Warrants and

outline

Thursday, October 18, 1956

York—International

New

Banking Department, Manufac¬
Company, 55 Broad Street, New York 15, N. Y.

turers Trust

Dealer-Broker Investment

Comjnercial and Financial Chronicle

Adelaide

Rights Listed
for

Street,

West,

Exchange—

COMING

Company Ltd., 25
Canada.

EVENTS

the Toronto

traders—Draper Dobie

Ont.,

Toronto,

Stock

Recommendations & Literature
It

understood

115

Atomic Age—Booklet—National

Consolidated

_____

Also

Burnham

View

propulsion

letter

investment

Dividends—Discussion of industries
issue

current

$1 per year—The Exchange
New York

Ethical

How

Burnham

—

able is a

Douglas

Duke

and

Security

"The

Magazine, Dept. 7,11 Wall Street,

Gulf

Independence

Financial

Ira

—

Stocks

Insurance

Bulletin

—

Morgan

Co., 17 Wall

Market For

Street, New York 5, N.

Tax

York

Bank

New

City
York

City

120

Broadway,

Bank

Stocks—Laird,
5, N. Y.

comparison

Bissell

in the National Quotation

yield
York
Over

market

and

National

with

Front

period

the

Salle

Potomac

Ruberoid
New

Harris, Upharn & Co., 14 Wall Street, New York 5, N. Y.
Tax Reductions

on Corporate
Income—Analysis—Joseph Faroll
Co., 29 Broadway, New York 6, N. Y.

Time

Chart—Showing time differences in

effect

Morgan

issue

and

Co.,

•

Corp.,

Steel

Br,oad

Chesapeake

Wall

Street,

Ohio
—

New

Rainbow

Co.,

9th

Purcell

Co.,

Co.,
S.

"Gleanings"
of

selected

report

equities
&

Co.,

Association

(Baltimore, Md.)
22nd

Annual

Dinner

American

Mid-

Southern

the

in lower

135

Co.,

South

Wall

Texas

Steel,

Charles

of
Investment
Association
annual

Nov.

Bur¬

Co.

707,

Statler

Hilton

3-6, 1957

(Hot Springs, Va.)

National Security Traders Asso¬
ciation Annual Convention.

Pfizer

Conducting Course

Y.
&

the

Hotel.

Granbery, Marache & Co.,

—

(Dallas, Tex.)

Group

meeting

Street,

Association

Conference.
April 21-23, 1957

Reserve

bulletins

are

(Chicago, III.)

Bankers

11th National Instalment Credit

Incor¬

Investments

Joseph Perry, registered

repre¬

sentative with Bache &

New

York

Co.,

bers

Stock

the

change

York

New

and

mem¬

Ex¬

other

leading Ex¬
changes, is conducting a course on

investments

Smelting,

Refining and Mining Company—Bulletin—
Bruns, Nordeman & Co., 52 Wall Street, New York 5, N. Yc

F. W. Wool worth

(Chicago, III.)

Bankers

Mar. 18-20, 1957

Corp.—Memorandum—Schirmer, Atherton

Room

1957

Bankers

Oil

Broadway,

meeting and
the Bankers

Security Traders As¬

Winter

Ltd.—Analysis—Unlisted Trading Dept., Ira Haupt

Ill

annual

party

Baltimore

Co., 50 Congress Street, Boston 3, Mass.

Hotel.

City)

Hotel.

Limited—Analysis—Blair
porated, 44 Wall Street, New York 5,-N. Y.

Supercrete

York

Jan. 18, 1957

Railway.

(New York

sociation

Republic

Report

convention

Beach

National Credit Conference.

/ ' A

available

York

1956

American

Newman

Co.—Memorandum—Capital

Also

annual

Hollywood

Club.

memorandum

(Hollywood

Security Traders Association of

Stocks,

America
the

Co.,

New

1956

Beach, Fla.)
Investment Bankers Association

Jan. 14-16,

list

Hotel Commodore.

25-30,

cocktail

Also available is

Analysis — Frank
Miami 32, Fla.

Power

Schering Corporation

tion

the

Center,

High

Adult

Educa¬

Mamaroneck

Senior

Mamaroneck,

School,

New

York.

Co.—Report—Thomson & McKinnon, 11 Wall

The

Street, New York 5, N. Y.

day

which began Tues¬

course,

evening, Oct. 9, will
It

weeks.

Officers of Denver Firm

from

Oct. 28, 1956 to March 31, 1957 in over 100 countries
through¬
out
the world as compared
with Eastern Standard Time

Nov.

Dec.

Company—Bulletin—Bache

York

roughs

—

Pocket Guide for Today's Investor—Pamphlet containing lists
of
selected securities
for
income, growth and trading—

World

Inc.

Electric

Stanley Aviation

Comparison of
14 leading
companies—Harris, Upham & Co., 120 Broadway,
New York 5, N. Y.

Corporation,

Street, Chicago 3, 111.

rations.

Peter

—

current

Scurry

Paper, Container and Packaging Companies

Inc.,

Corp., 1346 Connecticut Avenue, N. W., Washington 6, D. C.

13,

Co.,

priced range.

—

unlisted

1956 (New York City)
Security Traders Association of

Ontario Paper Company —
Analysis — Francis I.
Co., 1 Wall Street, New York 5, N. Y. Also avail¬

companies — $4.50 per year
Over-the-Counter Securities Review, Jenkintown, Pa. Also available at a cost of $4 is "Over-the-Counter
Securities Handbook," guide to almost 550 unlisted corpo¬

—Dept.

—

Inc.—Analysis—Edward
Street, New York 4, N. Y.

Smith-Corona

New

Street,

Monthly magazine

—

data

Analysis

Exchange

New York cocktail party, dinner
and dance in the Grand Ball¬
room,

Trucks,

and

Securities

statistical

—

Stock

Nov. 24,

Securities

Ok-Miss—Memorandum—Doyle, O'Connor

13-year

Also avail¬

Dickson

meeting of Board pf Gov¬

ernors.

Mills—Bulletin—Oppenheimer

Building,

14, 1956 (New York City)

Firms

Conklin

American Aviation.

du Pont &

Corporation

Broadway, New York

N. Y.
Counter

the

stocks

over

Inc.,

Bureau,

Witt

JWarchant Calculators, Inc.—Study—Harris, Upham & Co., 120

Meeds,

Bureau Averages, both as to

performance

Quotation

m,~5

—

Street, Durham, N. C.

Corporation

Broad

able

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used

North

Mack
•

Index—Folder showing

Head

Minnesota

Stocks—Third quarterly

New York

Over-the-Counter

Nov.

Co., Inc., 39 South La Salle Street, Chicago 3, 111.

Ingraham

Exempts—Bulletin—Park, Ryan, Inc., 70 Pine

Street, New York 5, N. Y.
New

Commonwealth

Charlotte,

Sprtaffc*

the El Mirador Hotel.

year.

Investing Corporation,

Corporation—Analysis—First

Ludman

Co., 634 South

Stocks—Analysis with particular'reference to
Life Insurance Company—Kidder, Peabody

Insurance

Trinity

per

Sterling, Inc.,
Company and Piper

Bulletin

—

(Palm

National Security Traders Asso¬
ciation Annual
Convention
at

Hercules Galion Products, Inc.

Street, New York 4, N. Y.

—

Spring Street, Los Angeles 14, Calif.
Life

Broadway, New York 6, N. Y.

Indian

1956

Association

Corporation

24-27,

Firth

Manufacturing

Co.—Memorandum—R.

Building,

Sulphur

—

Exchange,

issue

Husky Oil Company of Wyoming—Card Memorandum—Leason

Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.

Life

current

Transistor Corp. — Progress report and analysis —
Stanley Heller & Co., 30 Pine Street, New York 5, N .Y.

149

Current information

—

Oct.

General

11, N. Y.—$4.95.

Japanese Stocks

per copy;

are

Lomason—Report—General

Corcoran

111

magazine—

Exchange"

bulletin

Power

Frigikar

paying the most generous

Cobleigh—A panoramic and expanding program for personal
prosperity from the first piggy bank to the last bequest—
Hawthorn Books, Inc., Dept. Q-129, 70 Fifth Avenue, New
York

issue

Street, New York 5, N. Y.

Wilder

5, N. Y.

Gain

Stock

15 cents

current

Progress

Motors

Wall

New York 6, N. Y.

the

Calif.)

Organization, 100 Broadway, New York 5, N. Y.

Drugs—Analysis—Zuckerman, Smith & Co., 61 Broad¬

way,

available

Indiana.

Corporation.

Continental

Company, 15 Broad Street, New York 5, N. Y.
dividends—In

Also

program

Monthly

—

Foil

Aircraft

Field

Goodbody & Co.,

—

Co.

Oil

Investor—American

discussed

(No. 21)—Comments on the U. S. Navy's

atomic

Standard

Place, New York 6, N. Y.

billion
including a tabulation
showing the companies now working on the Atomic Air¬
craft
Propulsion program.
Also available Atomic Fund's
annual report illustrating atomic industry by means of color
photos—Atomic Development Mutual Fund, Inc., Dept. C,
1033 Thirtieth St., N. W., Washington 7, D. C.
dollar

Memorandum

—

York

New

Electrodynamics—Discussion

American

Securities & Research Corpo¬

ration, 120 Broadway, New York 5, N. Y.
Atomic Letter

Broadway,

memorandum

parties the following literature:

send interested

Allegheny Ludlum Steel

mentioned will he pleased

the firms

that

Investment

vide

better

designed

run

for

pro¬

understanding of in¬
in this country

vestment economy

Recently elected officers of Amos C. Sudler & Co., First Na¬
tional Bank Building,
Denver, Colo., are John H. Alff, Vice-Presi-

through
ciples
will

study of the basic prin¬
investing.
The lectures
the

include

following

sub¬

How to Read a Balance
Sheet; Financial Reports and Pa¬

jects:

Dealers

We believe

you

and

your

clients

can

.Banking. Services; and the
types
of
investments

pers;

profit in:

different

Atomic Stocks

such

Hardly
The

question of it!

industry which "has

whispered

figures to

dwarf

the

ment
grown

president's
this

and

sum

in 15 years from

ear

$14

dominate

equation
program"

Finance.In

•

future.

Mr.

Vitro
•

Phillip
dent

and

J;' Clark

Treasurer

Secretary.

•

Black
•

Baird
•

Mineral

Grinnell
•

DEPENDABLE MARKETS

Associates

Foote
•

Co.

Electronic
•

High

r-—1

1
-

have

Voltage

wcrked

Engineering

Security Dealers

& CO.

self

bring
I

the

and

Trinity Place, New York 6, N. Y.
Teletypes NY

1-376-377-378

DEMPSEY-TEGELER & CO.

York

supervised
with

•

addition.to his lecture series,

Perry also plans to speak at

"Dividends

Are

Girl's

"go

and

—

have
a

forces.

retail

r ■-

•;

and

producer

successfully;

dealer

acquaintance

makes

who

interesting

and! correspondence1 that
ideas.

constructive

trader,

thinking

departments

production

advertising

new

combination

forward

trading

sales

own

type

getter" and

capacity
with

the

wishes

salesman,

organization

associate

other
•

wholesaler

who

can

use

him¬
and
my

production.

Commercial

Best

large

retail

scope.

business

1018,

in.

believe

correspondent

Association

Box

Uni¬

knowledge of all phases of the investment business;

and

closely

countrywide

reading.

talents

HAnover 2-2400

thorough

organized

•

Associates

TROSTER, SINGER
York

have
...

words

New

York

Friend."

...

l-*~—~—~

have

will

Members:

New

TO AN AGGRESSIVE ORGANIZATION

Corp.

Tracerlab Inc.
•

Bryson

Lithium Corp.
•

Sivalls

extensive

has

meeting of the 'Ladies Club of
Belle Harbor, Long Island, Jewish
Center, on Oct. 16.. His topic will

Lloyd W. Hammer

and Lloyd W.
Hammer, Vice-President and
Phillip J. Clark, formerly Secretary of the
firm, has
been elected Executive Vice-President.

Corp.

Beryllium Corp.

experience, studied Invest¬
Marketing
and
Portfolio

versity and the N. Y. Institute of

Among Many Others, We Trade and Position:
•

who

Perry,

Management
an

billion

the

stocks and bonds.

Mr.

lecture

Financial

Chronicle,

Park

Place,
*

New

Volume

184

Number

5578

The Commercial and Financial
Chronicle

(1641)

has

mon

Joy Manufacturing Company
By IRA U. COBLEIGH

Gain

the

market

last

quite

two

price

stock
timid

Security and Financial Independence"

split.
about

its

increasing magnitude, modern management
functional machinery for
mining and industry.

and
There

are

couple

major

drives in our economy that we'd
like to comment briefly
upon, be¬
fore we go below
ground to dig

the facts

for

For

piece.
prime

course,

subjugate,
control,
flat-

CiE||

out; and,
possible, to

business

cle.

.HHHKJHHHi

main

Ira

appears to rest

interest
drive

the

Cobleigh

manage¬

supply and
major
localized; it's the
persistent endeavor
The

second

and

business

smart

many

ments

our

money

rates.

studied
of

present¬

ment

combat

manage¬

the

cyclical na¬
of their particular enterprise

ture

broader

diversification

into

profitable,

and logically related,
product lines. And a good exam¬

ple of the successful implementa¬
of this trend is Joy Manu¬
facturing Company. In fact, the
annual report for 1955 specifically
tion

defined
ment

the

and

creased

provide

earnings
Let's

manage¬

for

the

share¬

how

see

in¬

well

the

1945, over two thirds of Joy
Manufacturing sales were in the
field
of coal mining; today less
45%

The

stems from this

transition

has

extraction

other minerals?

For

instance, it was found that
equipment
could
be
adapted to low cost extraction of

coal-type

potash, limestone and taconite
metallic

and

ore.

non-metallic

mining and quarrying, Joy turns
a
rotary blast hole drill with
high penetrating efficiency.
In

out

fact,

other company, anywhere,

energy

a wide diversity of
rotary and percussion drills. Joy
also delivers a complete line of
hoists, loaders and shuttle cars.

On Dec. 17, 1954, Joy acquired
(for about $3 million) the BaashRoss Tool Company of Los An¬
geles.
This
provided
corporate
entry into the rapidly expanding

and

natural gas

industry with
such useful items as seismograph
drills, casing heads, hoists, fans,
compressors, pipeline drilling rigs
and fishing tool service.
There
sive

has

effort

plants and

particular,
program

been

bring

business

building

way,

trial

also
to

construction

inten¬

Joy
—

structures,

the

high¬

indus¬

public works.

vast road building
necessitates
a
lot
of
our

tunnels; and Joy, having bored
thousands of miles of mine tun¬

doom

water

within

and

bituminous

Then

The atomic
of

sudden

power)

and

manu¬

the

Continuous

finds

drills,

compressors,

and

ventilating

fans

steadily enlarging market.

And in the general fields of

manu¬

facturing, processing, aviation and
shipbuilding, Joy products, espe¬
cially relating to dust collection
and
ventilation, have been moving

ahead.

and

wide

world

began to catch

big

and helped (by a whacking
reduction in labor costs) to bring

way

profitability

back

into

instead

moribund

trade,

tons

1956;

and

for

prices

soft

are

produced

were

above 500

dicted

being

million

600

Hotel.

REGISTRATIONS FROM OCT. 2-15 FOR 23RD
ANNUAL CONVENTION OF
NSTA, EL MIRADOR HOTEL,
PALM SPRINGS,
CALIF., OCT. 24 TO

27, 1956.

Mrs. Frank C. White

1960.

And

that

pre¬

delivered

All

which

many coal companies
the
money
(or
the

have

credit) to update their machinery,
upgrade their
earnings by

San

William H. Cristopner

R. IV.

Pressprich & Co.
Burke & MacDonald.

♦William J. Dyer

mar¬

Miss Sandra Jo Dyer
Herbert E. Beattie

expanding
machinery, Joy may
further inspection.

♦Walter F.

H. A. Riecke &

Schag

Co., Inc.

San Francisco, Calif.

Hawkins & Co.
J.

Cleveland, Ohio
Los Angeles, Calif.

Crcwell, Weedon & Co.

John D. Kipp
Miss Malinda

Schirmer, Atherton to

Logan & Co.
Hill, Richards & Co.

Los Angeles, Calif.

A. G. Becker & Co.

Jolley

The

Arthur C. Sacco

Chicago, 111.
Atlanta, Ga.

Robinson-Humphrey Co.

members
Boston
1

will

Atherton

the

Exchange,
is

Miller

will

York,

Dempsey-Tegeler & Co.

East Tawas, Mich.

Lester, Ryons & Co.
Stone &

Collins Macrae

Wulff, Hanson & Co.

Forest W.

Sun F rancisco, Calif.

Morgan & Co.

Los Angeles, Calif.

Shipley

Los Angeles, Calif.

Youngberg

San

Peviberton Securities, Inc.

♦A. M. Leary
Verne C. Beal

Barrow, Leary & Co.
Quinn & Co.

M. E. Goldstein

Kern good

Albuquerque, N

G. II. Walker & Co.

Reilly

Brown

Chicago, 111.
New York, N. Y.
Fresno, Calif.

Bailey & Co.

♦Frank L. Hall

Sutro Bros. & Co.

♦Everett W.

E. W. Snyder & Co.
George W. Cunningham & Co.
Walston & Co., Inc.

Snyder
George W. Cunningham

A. Winsor Weld

Campbell Armor

Weld, limited partner
Webber,
Jackson
&

New York, N. Y.

Syracuse, N. Y.
Westfield, N. J.

♦Clifton W. Morrill

San Francisco, Calif.
Los Angeles, Calif.

Crowell-Wecdon & Co.

♦Jack H. Alexander

Kerr & Bell

away

Los Angeles, Calif.

Frank M. Whitney

Oct. 7.

Whitney <fc Company

Patrick J. O'Halloran

Salt Lake City, Utah

Walker's Weekly Newsletter

San Francisco, Calif.

Duncan Bryce Reynolds

Paine,
Curtis, passed

Walker's Manual, Inc.

San Francisco, Calif,

Herman J. Zinzer

ner

away

Reichenbach,
Herzfeld

J. Earth & Co.

♦George H. Earnest

Detroit, Mich.

Sclierck, Richter

St. Louis, Mo.

Earl L. Hagensieker

long illness.

Los Angeles, Calif.

Manlcy, Bennett & Co.

Henry J. Richter

Reinholdt & Gardner

Investors^ Corporation

Seventh
under

,branch

office

direction

Denver, Colo.

Locke, Gray & Co.

Vancouver, B. C., Can.

Dean Witter & Co.

San Francisco, Calif.

♦Corwin L. Liston

Jack

Prescott & Co.

Cleveland, Ohio

William F. Belknap

Win. R. Staats & Co.

San

Morcy D. Sachnoff

450

Avenue, New York City

the

St. Louis, Mo.

Corp.

♦Fred. A. Baker, Jr.

has

Mountain States Sec.

George M. Tapp

First Investors Branch
First

Los Angeles, Calif.

Fewel & Co.

♦Robert C. Whitaker

opened

et. Louis, Mo.
.

Robert J. Moons

senior part¬
Stern, passed

Oct. 9 at the age of 70 fol¬

lowing

Dempsey-Tegeler & Co.

James C. Dean

Max Reichenbach
Max

Arthur M. Krensky &

Co,

Francisco, Calif.

Chicago, 111.

Wendroff.

♦Mr. & Mrs.

buying Continuous Miners, which,
with

belts,

conveyor

tons

cars,

per

1955

man,

shift

per

average

nine

"Sixteen

and

instead

whistle

can

out

of
50

(against
tons

Tons"

This

announcement

per

popular song lyrics!).
Over
Continuous Miners are now

350

the

man,

stalled;

NEW

offer

is under

buy

circumstances

be construed

offer

sell

or as a

solicitation of

of these securities. The offering is made only by the Prospectus.

any

ISSUE

October 16,

in¬

1956

and the bituminous trade

is expected to
in

the

1956-60

500,000 Shares

lay out $ll/z billion
period to replace

outmoded

machinery with the lat¬
est and best; and to develop larger
production capacity.
Joy, as the
leading
manufacturer
and
de¬
signer of coal mining eauipment,
should benefit handsomely.

Carolina Power 8C

neglected

geographic
in

ness

the

mention

Joy

one.

with

local

France,

(Without Par Value)

royalties

patents,

revenues

are

business

ment

from

phase ^of

75%"

be earned abroad

The Prospectus may

gross

this

over

S.,

derived

now

and

overseas,

ago.

from

20%

per

Com¬

abroad, and
coming in from

over

$24,375

Britain,

manufactured

foreign

Joy

sales

export

goods

Price

manufac¬

Great

South Africa and Australia.

bining

the

does busi¬
throughout

countries

world,

tories

Light

Common Stock

Another factor of diversification
we

dealers

be obtained in

circulated

from

brokers

may

only

any

such

State i>p which this

the

should

within the past year. At the level
of
manufacture
and
sales,
the

most

effec¬

tive; and for the research of

Merrill

Lynch, Pierce, Fenner 8i Beane

R. S. Dickson &

new

to increase sales at the rate

10%
For

new

S120

lion

195<\ Joy is slated to enter
ground

million

for

The First Boston

Blyth & Co., Inc.

Goldman, Sachs 8C Co.

Smith, Barney & Co.

Kidder, Peabody 8i Co.

Corporation

White, Weld 8i Co.

Incorporated

A. C.

Allyn and Company
Incorporated

Central

Bear, Stearns SC Co.

Carolina Securities Corporation
'

Republic Company

Clark, Dodge & Co.

(Incorporated)

Drexel 8C Co.

^ar.

hig^

Sept 30.

Company

Incorporated

products

other

the

this year.

team

lawfully offer these securities in such State.

and

management

announce¬

undersigned

year

Management is both progressive
aggressive, headed by Mr.
John Lawrence, elected President

!p~6)
1"

with

(fiscal

year

against
This

sales

should

Hornblower 8C Weeks

W. C.

Langley 8C Co.

Laurence M. Marks 8C Co.

ended

$81.9

mil¬

trans¬

late
into
'uughly
$6
a
share
against £? ' * 'ast year. The com¬

Mex.

New York, N. Y.

Sincere & Co.

♦Alex.

& Co.

Francisco, Calif.

Vancouver, B. C., Can.
Shreveport, La.

Co.

♦Edward H. Welch
♦John C.

from

partnership in Schirmer, Atherton

A. Winsor

Los Angeles, Calif.

D. Jones

♦J. E. MacDonald

withdraw

Philadelphia Pa.
Philadelphia, Pa.

Ralph E. Blown

Moeller, member of
York
Stock
Exchange,
1

New

Thayer, Baker & Co.
Thayer, Baker & Co.

John R. Nevins

Nov.

Dr. Harold

Stock

Whitehead.

New

Master Robert Hudson

partnership.
Mr.
partner in Cosgrove,

York

York,

♦William H. Davies, Jr.

Richard
the

New

York,

New

Gersteri & Frenkel

Miss Mary Lou Hudson

and

Exchanges, on Nov.
admit Carl N. Miller, Jr.,
of

New

W. E. Hutton & Co.

Lester Frenkel

Co.,

York

New

Stock

member

Miller

the

Los Angeles, Calif.

W. E. Hutton & Co.

Arthur T. Hamill

Schirmer,

Chicago, 111.

Lester, Ryons & Co.

♦William L. Wright
Samuel F. Colwell

Admit Garl Miller Jr,

Los Angeles, Calif.

Webster, Marsh & Co.

and

shuttle

;

Philadelphia, Pa.

Davis, Skaggs & Co.

♦D. N. Hawkins

Francisco, Calif.

Nc-w York, N. Y.
Kansas City, Mo.
Kansas City, Mo.

Burke & MacDonald

♦Patrick N. Mac Intyre

expected

million

higher.

their

Richard E. Owen

coal

coal looks
Four hundred seventy

wonderful.

million

hold

Jan. 18, 1957 at the Southern

Clemens T. Lueker

mining.
now

Security Traders Association will

ADDITIONAL

constantly

lines of

deserve your

gram

line

conveyors

new

Coal

introduced

Joy

same

keter

lift in
appeared.
And

(originally

Joy

for

no difficulty in doing
thing where a toll, in¬
stead of a coal, was the revenue
producing element. Here again the

nels, found

faster

even

lively

Miner

means

at an

SECURITY TRADERS ASSOCIATION

Baltimore

22nd Annual Mid-Winter Dinner

earn¬

58Joy is selling below
earnings; and a minimum

producer,

the

1954;

all

finally

substantially,

and

heralded.

demand

oversea

the

The

major beneficiary of upswing in
soft coal, and an effective
creator,

created

approximately
4%
of
sales is presently being allocated.
Plant outlay for this
year
wtll
total S7 million—an implementa¬
tion, in part, of an over-all pro¬

the

costs

tons

program

facturing;

1948)

BALTIMORE

representative entry in the
of labor saving machinery,

field

declines

needed millions of
tons; electric
utility coal demands soared; new
aluminum plants were so located
and designed as to use coal
(in¬

stead

stock

bituminous

something happened.

turns out such

oil

all

competition

widely

was

now

Well, it was!

For

the

labor

million

source.

been

quite
swift and intensely logical. If Joy
technical- excellence,
know-how
and
research
could
bring
the
company
to
rising profitability
and recognized leadership in coal
mining equipment, why couldn't
equally effective machinery be
designed and manufactured
for
the

while

Postwar

gas

eventual

coal

for

than

dependence

But

production,

and

392

1955,

they're doing it.
•

oil

broader

base

secure

holders."

purpose

"to

as:

has, of

industry, carried production down

power

here

coal

increased

cy-

Our

industry.

soft

the

trade.

fortunes

earning

little

cash dividend of $2.10 is indicated.
As

going on, there has
quite dramatic reversal in

coal

10 times

of.

been

and

devastating
swings in the

fire

been

which

program

coal

has

base

lessened

the

eliminate
wide

course,
on

target

the

this has

ten

been

power,

from coal

Actually, however, this
the idea; rather the

not

broaden

overall

is,

mining.

NSTA Notes

rise

two-for-one

those

considering

ings have risen

the part of the

to get away

company,

essential

The

drive

determination,

order

should be noted that net

rate.

The above would almost
suggest

has

y's

with

in. ,the

which has soared

Some notes

performer

years,

100%, coupled with

Author of
"How to

been

Paine, Webber, Jackson 8C Curtis

G. H. Walker 8C Co,

The Commercial and Financial Chronicle

(1642)

Thursday, October 18, 1956

•

in many

uncommon

Difference In Past and Present

tries.

By SHERWIN C. BADGER*

Financial Vice-President, New England Mutual Life Co.

Mr.

Badger's commentary about

remaining tight and

money

changes, precedes conclusion that people and not Government
that

until

tighter

Mutual

and what is done with

money,

and

Life official

inflation.

due to tax laws, and

This
time

recall

conditions

Routing the "Easy Money" School
Now

the autumn of
1950. We were

"Our

then

when

ment"

the

rapidly

and threatened

continue

rise.

Bank

loans had been

rising at

rate

which

the

Sherwin

Badger

Chairman of

the Federal Reserve Board termed

phenomenal.
The Federal Reserve Board

unanimous in

its desire to

was

its

use

not

to reduce these inflation¬

powers

forces

restraining

expansion.

of the Federal Reserve to

the

Treasury

preserve

interest rate structure
ment securities.

the

tween

the

The

Federal

under

the

mists

who

by intellectual debate but rather
by the hard facts and realities of

govern¬

economic life4 Governments have
discovered that they cannot con¬

be¬

Reserve

and

trol

into

come

Administration

those

believed

that

the

was

this

interest
low

thought
rates

school

cluded

that

one

thought,

which

is what

the

preserve

sound

also

achieving

this

re¬

will

and

way

the

its

through

bonds.

Federal

the

consequence,

If they de¬

services

and

can

little

precious

that

about

down—and again there is
little the government can do

cause

price

the

for

them

preference

value

The

conflict

resolved

through the
Since
serve

its

that

eral

lean
*An

the
now

time

the

Treasury
spring

Federal

For all but

done

was

1951

Re¬

relatively

address

by Mr. Badger before the
Bankers Association of Amer¬
10,

1956.

issues

bonds,

which

substantial

at
like

about

the

masters

Fed¬

period since then, the Fed¬
policy has been to
the winds of infla-

Oct.

thought

1953

their

in amounts
truly staggering. They
include not only expenditures for
which

not

were

straining

financial capa¬

our

but

reduced

are

formed two other important func¬
tions.
First, they induced addi¬

expanded

tional savings or attracted money

efficient

from other

ment.

terred

capacity but for more
machinery and
equip¬
They include requirements

additional

for

working capital to
finance higher wages and higher
material costs which are implicit
such

labor

recent

for

future

industry. They
expenditures
to educate and train

producers.

Let
form

the

and

deposits

and

June

creased

1953

their

loans

approximately
billion.

this

ratio

the

same

today,

I have

capacity

mercial

limited

our

ble

are

dis¬

the

pursue

people

this*

prior . to
1930.
In
periods
of
tight
changes in interest rates
quickly affected the international

pursue

money
money.

flow of

quite limited unless the banks

increase

funds, including gold. To¬
day, however, there is little hope
of an easing of our situation due

can

their

capital
accounts
substantially and increase their
deposits.
It therefore seems in¬
escapable that if the over-all de¬
mand

for capital

for

its

they

international
there

There is

met, it will have to be met for
most part out of current and fu¬

present

larger

rowing and

Our

very

has

influence

high in¬
greatly
high in¬

deterrent to bor¬

inducer of

ing and investment.

it is

fore

over-

surprised that

widely ignored in current

discussions.
ducts

sav¬

I believe the

importance of this cannot be

stressed, and I

The

interest

borrower

from

computing

earnings

taxable

Continued

de¬

be¬

income.
page

This advertisement is neither

offer to sell

nor a

solicitation of offers to buy

any

of these securities.

The offering is made only by the Prospectus.

•1
NEW

ISSUE

October 17, 1956

400,000 Shares

Company

com¬

much

because

member

In
if

other

4.64% Cumulative Preferred Stock
(Par Value $100 Per Share)

sufficient

words,

reversal

Fed¬

banks

have

many

the

willing to dis¬

6f Federal

deposits and loans to capital.
should

strongly
the

can

emphasize

that the

Price SI00 per

plus accrued dividends from November 1, 1956

blame

money

present stringency in our
market is not to be laid

door

the

Federal

Re¬

The stringency is due to
the fact that the American people
and American business are bor¬
serve.

rowing or want to borrow beyond
the availability of savings and be¬
yond the availability of bank capi¬

Copies of the Prospectus

may

be obtained from

any

of the several

underwriters, including the undersigned, only in Slates in which
such underwriters

and

which

are

the

qualified to act

Prospectus

may

dealers in securities

legally

distributed.

tal.

Shortages of Labor, Capital

believe

and Credit

Only
months

money

and

within
are

the

past

several

beginning to real¬
country is faced with
shortages quite incon¬

our

basic

sistent

with

the

economic

and

monetary theories dominating the

been

Money
is tight in Canada, tighter than
here.
In fact, tight
money is a
world
wide
phenomenon with

shortage of skilled labor and the
shortage of money-4n the form of
available capital and credit.

rates of 10%

terest rates

impor¬

important fac¬

structure

the

and

Commonwealth Edison

Money is
now
tight
in
the
United States, the tightest it has
over

standard
on

exchange rates.

tax

come

funds

not

rather

situation.

for

gold

tor, however.
dulled

are

restrictions

are

tant foreign

and credit is to

effect,

two

our

international

policy would have much
a
temporary psycho¬
for it would not

logical

ing

than

ize that

credit

flow

to these shores.

reserves

reserves.

being the
and what is
I should like

because

earlier

shortage of reserves
shortage of capital
Indeed, there is no short¬

Reserve

government

with

periods

those

doubtful

for

Let

present pe¬

our

contrary

not

eral Reserve is still

per¬

circumstances.

period their

quite

banks

funds.

that

if perhaps

high

functions

two

of tight money is not quite
different from previous compara¬

already pointed out that

to
belief, the further lend¬

common

count

present

the capacity of commercial banks
to help finance these large future
demands for credit and capital is

Government

Shortage of Reserves

Thus

latter

money,

dropped from $29
$26xk billion.

age

whether

likely

are

riod

fense.

have

examine

rates

these

see

Borrowing

by 30%, from
billion to $52

$40

holdings

balance

Distort

the

weekly
reporting member banks in the
Federal Reserve System have in¬

ing

course

under

traveling time
of goods and people. And we must
continue, of course, to finance tne
increasing costs of national de¬
on

due

interest

They include
for roads to

expenditures

struck.
Taxes

settlements

enormous

schools,

uses; second, they de¬
would-be borrowers.
As a

result,
was

that of the steel

include

capital
is approaching what many bankers
believe is the limit of prudence.
Since

correct

position strained,
liquidity
has
been

their

greatly
loans

situation,* In
money
in the

«■ their
produc¬
capital is needed

new

tend

reserve

is the key to a proper understand-

famous "accord."
the

should

than

against

Chicago,

de¬

Reserve's

Mortgage

ica,

and

was

three

selling

counts.

pace.

between

but

now

pace

has been free to implement

policy.

short

money

alarming

Reserve

eral

rapid

things that are available for
their money. And the same thing

Through this proc¬
volume of money had
such

dropped to these prices be¬
nobody is willing to pay

all

the

easier money policy and when

business started mildly downward.

other

other channels.

that

powers

is true of U. S. Government

clining at

reversed

high interest
the supplyperiods of
tight
past, high
interest rates not only measured
the state of the market, they per¬
rates

the

things and

correct the strained ratios of loans

have

govern¬

were,

gov¬

proceeds could be transferred into
the

and

that
it.

eral Reserve without loss, and the

expanded

are

British government 2J/2% Consols
has dropped to 51.
These bonds

for all intents
and purposes, the
equivalent of
currency for they could be sold
directly or indirectly to the Fed¬

ess,

Reserve

mental

Reserve,

subservience

bonds

were

about it, even if it resorts to the
printing press.
It is not for any lack of govern¬

free

Treasury's desires, was still sup¬
porting the price of government
ment

Federal

securities

are

very

1950

due

one

their

they
decide that they want to increase
their spending power by borrow¬
ing, then the price of money as
measured by interest rates will go
up, prices of bonds and mortgages

in¬

currency

believes

markets.

builders

when

and

Decisions

they will do.

goods

there

Fed¬

fundamental

the

available, then prices

sponsibilities of government is to
that

with

bid against each other for

ernment

Board, that believed
the

masters, not the government.

cide to

economy

and is that

was

members

eral Reserve

the

people decide they would
rather spend than save, then that

should

all

quite

money

complaining about the unavail¬
ability of mortgage money. That
was a quite temporary phenome¬
non
which
ended
rapidly after

If the

always be
the
supply of money
On the other hand was

and

plentiful.
the

managed

people

It is the people who

People Make

the gov¬

nation's economy. One of the basic
school of

now

market

and

what

econo¬

only the govern¬
ment, is competent to manage the
tenets

routing of the "easy money"

money.

spell

ernment,

The

other.

school has not been brought about

low

the

plentiful on the
by controlling prices

money

hand and

one

was

conflict

Treasury had at last

the open.
The
then

act

determination

successfully manage the econ¬
and ensure
prosperity
by

making

It wanted to do all it

witness¬

are

different from
periods in the past.
Certainly, it is different from the
comparatively short period in 1953
when for a couple of months we
had a nearly disorganized bond

mind

omy

credit

could to preserve the value of the
dollar. Unfortunately, the ability
hobbled

This

many

economize

what

at the limits of

were

rising

title

Environ¬

have

not

for

with

increase

means

tivity.

workers

eral

inflation.

Prices

did

been

supply

merely pointing out that the Fed¬
bilities. It is true that the reserve ture
savings. The indications cur¬
Reserve has regained its in¬
position of the commercial banks rently are that our savings, enor¬
dependence and is a free agent.
was strained,
but the banks were mous though they be, are still not
That
is only
one
facet of our
not strained as to liquidity or as
sufficient to provide the needed
changed environment—a very im¬
to the ratio of their loans to de¬
portant one to be sure. It is, how¬
posits and to capital funds. Hence, capital for production and dis¬
ever,
merely a manifestation of
when the Federal Reserve made tribution on the one hand and for
more fundamental changes.
At the
additional reserves available be¬ the
consumption of durable goods,
expense of over-simplification, I
ginning in late May, the tension such as homes and
think
the
fundamental
change
automobiles, on
was quickly relieved, because re¬
that has taken place has been the
the other hand.
serves were what were strained.
demonstration
throughout the
According to classical economic
world that you can't play fast and
Today, the situation is quite dif¬
loose with money and get away ferent, particularly in most of the theory, when the demand for capi¬
with it.
Nation after nation has
larger commercial banks in the tal exceeds the supply, interest
learned that the government can¬ leading financial centers. Not only

early stages of
post - Ko¬

the

rean

Credit

Changing
I

first

has

States

vast

that

chose

demand

the

course

United

tal

ing

recently.

they existed in

not

the

tight

(4)

Personally, I think it has
done a magnificent job, for since
1951 we have had comparatively
stable over-all prices until quite

changes that have taken
place in our whole credit picture
in
the
past six years are truly
astounding. Tt. may be worth the

rates rise and in turn

tion.

The

and

•

tionary
repercussions,
what
is
clearly needed is additional capi¬

period of tight money. For
many reasons, however, it seems

capital

of now significant contractual savings
supply to meet rapid demand changes.

inflexibility

time

Money—Today
Yesterday

New England
critiques present with past tight money'

inducing

without

malfunctioning interest rates

V *

the

can,

stress

inflaming the fires of in¬
aie
burning every¬

Tight

periods and observes: (1) recourse-trend toward equities to
relieve credit strain; (2) present attractiveness of bonds vs.
real estate mortgages; (3) surprising lack of attention paid

ary

coun¬

which

capital-shortage cannot be offset by further bank credit

expansion

foreign

want

where.

become

the masters of money

are

without

flation

•

high interest
rates
are
significant chiefly be¬
cause
they show that throughout
the world there is a shortage of
capital
and
savings,
and
that,
throughout the world the shortage
of capital cannot be offset by a
further expansion of bank credit

relationship

going

demand-supply

hard

Tight Money Market Situations

this

But

years.

1930's

and higher not at all

and

1940's.

are

skilled

These

to relieve the

workers

and

are

the

shortage
its

infla¬

The First Boston Corporation

Glore, Forgan & Co.

Volume

Number

134

5578

The Commercial and Financial Chronicle

(1643)

lion,

A Look at the Basic Factors

192J;.
ihe

Determining Output and Price
Chairman, Department of

Commerce

price, and the ability of capital formation and output to

-2.3%.

rates;

investment capital

time

needs;

by the

savers

re-

assure

The

study
increase

projects

giving

year,

Gross

Product

$440

about
Na-

billion

-its "high", projection for 1960.

Accordingly, the reported mid-

•

August

employment of 66.8 mil-

lion" with

estimated 2.2 million

unemployed

things:

would

One,

indicate

about

3.2%

two

the

presumed work force of 69 million
is

unemployed. For the country
a
whole, we are once again

of commercial bank short term loans to finance business

use

tional

incentive-discouraging and small business-damag-1
ing tax laws; educational deficiencies; and, the most important
problem over the years ahead, the human factor. Dr. Lohman
disapproves of gold convertibility for fear of hoarding; sees,
no limitations to expanding
money supply to finance expan- sion, but does question reserve requirement distinctions and

rise.

money,

the

work week from
in 1950 to 37.5 hours

employ

envisages

Obviously,

productivity

cope

rising living standards in view of: pending labor short-.;
ages; non-realistic alignment between prime, discount, and long

terms

of the

nours

1960.

'must

with

term

million
work

per capita standard of living, productivity as measured by
average
output
per
man-hour

New England Economist examines population pressures acting
,

higher

Economics,

University of Vermont

actually

•

study also

rduetion
in

average

-the 40

By PH1LIPP H. LOHMAN, Ph. D.

would, be

"can be hired to
made

resources

and

idle

they can-.be

thus diverted to the desired uses,
In an economy operating under
conditions
there
tal

can

goods

high

employment,

short-cut to

creation.

The

capi-

amount

which business and public bodies

presently Wish

to invest in new
facilities
seems
somewhat
high
indeed in relation to the available
We

resources.
our

cake

risi*
rise

tak.mr nlace
taKing place.

nnw
now

popu-

cont™1-

quarter of

1956

will

see

very

Money is not wealth. In what-. should be permitted to buy, sell ^ght iabor marke..
form money is used-gold, and hold:gold, in refined form.
:9veF th,e remaining years of
paper money, bank checks or any
Such action was taken not so long this decade
the nation s_ labor
other of the myriad forms which
ago'"in Canada, permitting-ind?.-.-supply will be conditioned by a
it
nas
taken
viduals to trade in gold bullion." number of factors.
At tne 1940
in
man's
his
'* *
decennial nose count, the^e were
torv
it
is
'Pe°PIe Should Not Hold Gold * 131,669,000 A m e r i c a n s.\ Today

mer'elv
ticket

That

the

and

goods

lesson

which

the

re-

fnf

newed ^
pres-

and!

the

re.

met

nnumv

prices

sure

••

t h

should be

and management of

t ies

rvlU

av/4

Supply

expanded to twice their present
size and the monetary au-

who

thorities would still be within the

money,

required ratio of gold certificates

member

bank

Reserve

deposits

There

and

still

are

all

would

Therefore,

possess

and enjoy higher incomes,
would enjoy a higher

nTrrlnnPv^31, 311 actual sil0rt~ standard that living." reasoning
of type of Logicians
m
y.
refer to

age o
An

fallacy of composition. What
is trVe
one or a few, individ-

expanding economy requires
increasing money supply. The

as a

projections which have been made

uals

for

group

National

Gross

Product

increase

their

loans

this

ex-

provide

member

reserves

banking

system

may well ask: How high can
loan
ratios go?. There are steps

taken

assure

adequate supply of money for the
future. There are questions to be

of, goods

and

the

why not
adjust their

position through borrowfrom the central bank?
If

reserve

done,

loan

ratios

But-rather

can

then

peat.

here, let me merely
There is, nothing now

view

which

would-prevent

financing of

expanding

same

questions:

locate?

feared
hence

supply

deflationaryTlevelopfeeling played

role

decision

the

dollar in

great

devaluate

1933.

The

gold
of

different
who
be

say

raised

question,

one

can

existing today, is

one;

There

are

those

the price of gold should
in

conformity with the

general price advances

the

coun¬

try has been experiencing. This
is, of course, an unthinkable step
today. It would greatly reinforce
the

upward
pressure
on
prices
which already exists.
Others feel

that

convertibility should

introduced.

re-

Individuals, they feel,

increased

mean

and

far

argu-

country
will be.

without

want

Tomorrow

tomorrow.

must

see

greater output in order to provide
for-more people' who will want
still, more
social
services
and

goods. Furthermore, the relatively
small work force now in exist-

could

population

de-

running into labor
Moreover, to
achieve anything approaching full
employment conditions under a
stationary or declining population
would ; involve-7 such
a
drastic

supply

problems?

change

the

social

that

order

better

management

still
and

order

raise his productivity.
Women's Hats
.

thpo rip,

1930's had better take
the

argument

that

one

at
the

thing

is seen in the sharply increasing
population of the country, namely-

look

makes

rounds today. Now only

Economic Theories

over the silliness of people in the

•

nflrtir.,lnrlv

h°W..g°°d it is for business Look

wlJi

neip

attain

still

sure

limited
the

rising

population

resources.

Report

Paley

perusal

and

the

are

th»

shall _I

hire?

for

corporations,

tion

aiiowances

for

side

money

the

sources.

NEW

Labor

the

311,040 Shares

labor

jf^ore

Bucyrus-Erie

not
the

and

Common Stock

constructed C

will

and

machines

looking

schools

are

and

re-

($5 Par Value)

better autobe'

are

built

0ffset

a deficiency in the labor
materials and
labor will

these,

verted

6^.8 million. -Unemployment, the
Commerce Department reported,

had dropped_to an estimated 2.2
million.
J., F. Dewhurst

sociates
-Fund

and asthe Twentieth Century

study

(1955)

America's

Needs and Resources—a New Survey

that "According to the
assumption,
the
labor
will
increase
during the

say

medium
force
men

men

million

...

Modern

very
for

nature

normal

1960.

Sf noK „gii_

total of 72.5 mil¬

With

unemployment

assumed

Holders of the

sirrht

moneySas

goods rather than
is

talk

sense

about

5% of the labor force, or 3.5 mil-

vprv

claim

The

*1956.*Subscription:\Varrants will expire at 3:30 P.M.,

the

forth in the

any

Prospectus.

Surpris-

Copies of the Prospectus
writers

may

be obtained from any of Ihe several under¬

only in States in which such underwriters are qualified to act as

dealers in securities and in which the Pros pectus may

legally be distributed

discount

prime

rate,

move

little

the Canadian 3V2%

an(j

rate

appear

The First Boston

relationship

each

than

4% prime rate with

discount rate.

apparent,
studies

the

Reg at the

very

one

Ilornblower & Weeks

Clark, Dodge & Co.

Moseley & Co.

William Blair &

Company

Coffin & Burr
Incorporated

the stimulation of savings. In-

they do
services.

Dean Witter & Co.

Incorporated

F. S.

creased saving is a very effective

tight

interest rates.

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Beane

Robert W. Baird & Co.,

which

emphasis must be placed

Lehman Brothers

base of recent Federal

Reserve action,
More

Goldman, Sachs & Co.

Glore, Forgan & Co.

quite

when

purpose

other

That becomes

believe,

Corporation]

dis-

stand

better

°n

agreed, subject to certain conditions,'

unsubscribed shares and, both during and following
subscription period, may offer "shares of Common Stock as set

purchase

3% discount rate, will very

COunt

October 31, 1956.

The several Underwriters have

higher; The 514% Canadian prime
rate

being

pres-

seem

Reserve""

present

are

share for the above shares at the

require-

whatever

Federal '

per

share for each five shares of Common Stock held of record

Eastern Standard Time, on

ingly little is said of the relationPhjp between the prime rate and
the

one

easy

thp

under

would

October 16,

expected

step which

It is
of

reserve

conditions,

rate

Company's outstanding Common Stock

fights to subscribe at $42

in¬
in-

good by itself

lowering'of legal

make

offered

of saving,

conscious

lnsp

That

uses.

is understanding^

man

money

him

answer

lion

other

likely yet have to

*n mid-August, employment
climbed to another record high of

must

resources

from

troduces the question

with

SuddIv

October 17, 1950s

ISSUE

become

sidT

highways
materials

rate.

solicitation of offers to buy any of these securities.

even

must

resources

gquation.

cni

nor a

deorecia-

would

iess adequate. But in

matic

offer to sell

Rising

necessitate

vate

even

The offering is made only by the Prospectus.

greater external financing of pri-

WhaU There

foundly affect the process of allocating human and material re-

de¬

public

facilities.

new

speak

the

cline

time,

Investment

business

would

ments

gold

ments. That

Where

shall I

would

bring about

with

conditioning factor
introduces itself, i.e., organized
society.
Its
policies
may
pro-

econ-

inadequate

needed
Drices

buy? A fifth,

in
the

century ago, the

money

for

^ thT funds reouir^

type of building, machines, typewriters, .files, and so on, shall I

question went up: Is there enough
gold?
There were quite a few
who

Whom

factory,

doctor's office

or a

fundamentally

quarter of

resources.

retail store

re--

omy.

other

faced

become

involved

and

the

non"

;

Its function is properly to allocate

banks

less

How

also- be needed.
In an economy
operating under high employment
conditions* as ours is today, most

permit

the

on'V the"caoital markebTto

^dies

force)

For example,

all

Sy production. quire(j

ironed out.

higher.

that

in them.

nonsense

sounds

Principles of economics show,
that to produce goods and services
four
factors
of
production
are
needed: Natural resources, 'labor,
capital goods — man-made agents
of production, and management,

ver,

can

Total

have.

banks,

That, will

way

minus exports plus imports de-.
termine how much Americans can

tne

expand
how-

can

Commercial

outDut

services.

bank

which

upon

whole.. The only

increased

pansion proceeds. It is one matter
for the Federal Reserve author!-'

Funds

mands

not necessarily true of tne

in which we can increase the per
capita standard of living is by an

by 1965 indicate that banks must

that

almost

produces, the better

same

This ■advertisement is neither

people

have

better off.

lot

"If

reason:

money
all of

liabilities,

note

productive stage.

ing

great deal of

young citizens who lor some

monetary

our

lar difficulties,

deposits,.our
chief money supply, could easily

which

at the

what-ditiqos-To the work force will be

and credit system. A hoarding of
currency does not introduce simi-

driving home.

U. S. bank demand

were

1™Continued on Pa9e 27

Philipp H. Lohman

credit.

there

There is, of course, some truth
in these statements. There is also

ment

% as »

And
a

IlclVC

+u_~- intprnatinnal situation being

„iTO}ntc

ties

saw

Economic theories, particularly again! Water Shortages, higher
their popular interpretations, are prices for raw materials of which
in ahout the same category as only part can be explained as the
* To restore today a full gold there are 168 million. The Bureau women's hats. A different slogan result of inflation, a greater debullion or, worse, gold coin stand-«of the Census gives the country's tor each new season. In the 1930 s, pendence
upon
foreign sources,
ard seems to be also a rather in- Population for 197o as between when demographers uiideresti- overcrowding in schools and naadvisable decision. For one rea- 207. and 229 million.
Today we mated by such a wide margin tional parks, traffic congestions
son,
and there are others, such have a
population of over 45 total population of the country by and higher state and local taxes
The 1975 — some said 150 million
for the new facilities needed for
convertibility might easily trans-' million below the age 15
cVimilrl
in
fho
I1U1T1D0I* Ox DG0D16 3bOVG 65
fer power that should rest in'the ""mber of people "above 65 have economists said:'"Suppose we do more people. All these phenom¬
nnroocc^ nnf oKltr
Vlrl
have
£1
StStlOIlSry
JDOpUlcttlOll#
hands of the monetary authorities increased notably. In other words, have is
ena are illustrations of the pres¬
nothing to worry about.
to the general public.
With the 'Pr the immediate future, the ad- There

claim

services

(excess)

who

declining U. S.
population in the offing.
*

are

faster."

even

trying to enjoy right now a very
high standard of living and yet,

ever

the

those

eat

^<ept
}nS each worker with a
^ond, a active fourth larger amount of capital

an
actually declining population, living standards would go

few

with

trying to have
to.

people."

many

savings interest rate increase, re-examination
loHnn
lation

Federal

courageous souls went this theory
one better.
They said- "Of course

and recommends

ing laws, and realistic examination of claimed merits of

won't have to spread the increase
over

are

and

high

people

save,

money

When

not demand goods
Thus
the
savings,

The Milwaukee

Company

Blunt Ellis & Simmons
Loewi & Co.
Incorporated

Ilayden, Miller & Co.

The Commercial and

(1644)

Financial Chronicle

Thursday, October 18, 1956

'
•

Table
the

Inability of Bank Merger Law
To Deal With Local Mergers

problem is

merger

banks.

illustration

which
number

pre¬

those

able

applicable in

ments

branch
four

recent

mergers on

the

Subcommittee

and

Moropoly

the Judiciary,

the

re n c

the

State

the

million

$50

basis

size

the

Gables,

Ryan

fragmentary
that

national

Land, Ar¬
The combined

the

National

Florida

informa¬
of

number

with

figure

$10 billion,
The

all
the

resources

approxi¬

51% of the

consolidated,
merged
or
purchased by other national and

total.

State-chartered

during the
period amounted to 828,f and that
the total

$0,863, and $0,518 million

resources

amounted

billion.

banks

of those

number

ranged from

Pennsylvania to

banks

approximately

The

$18.6

low

164

one

Hampshire,

*Legislation
Hearings

Antitrust

mittee

Affecting Corporate Mer¬
before the Subcommittee

and

Monopoly of the Com¬
Judiciary,
United
States

the

Senate, Eighty-Fourth
Session,
pursuant
to
S.

3341,

Congress,
S.

and

3424,

170

9424,

pp.

85-89.

tWe
one

omit

one

Puerto

troller's

merger

Rico

figures.

included

Alaska
in

lowest

tion

most

and

from

garnered

however,

Vir¬

respec¬

banks

the

in the State,

mergers

sources

32.1%

only

those

1.1%

the

but

the

under

resources

amounted
totah

with

banks

effect

Dec.

the

4.8%

other

banks

the

hand, merged

resources

number,

69.6%

of all

the

and

Size

Merged

Corn

Chase-Manhattan-Bronx
National
Bankers
is

City-First

percentage

Size

$50

over

but

two

National-

all

merged

Merged

Over

and

under

Total

Resources of

Merged Banks

Cent

Resources

(2)

Pennsylvania

164

$2,265,076

New

137

9,998,567

1,003,324

485,923

335,183

475

$14,088,073

Ohio
Nev/ Jersey

(7)

1,419,586

7.6

124

15.0

1,866,796

10.0

Over $25

and

under $50

million

5.3

1,488,709

8.0

6.0

12,934,580

69.6

100.0

$18,601,733

New

York

Resources

Merged

California
Ohio
New

Iowa
Nevada
New

T._
:

■

Hampshire

Number

Number Of

Of Banks

Branches

Merged

Dec. 31,'55

_____

Totals

over

Dec.

31,'55

Dec.

Dakota

52,736

9.9

$10,506,532

Total Resources
Of All Merged
Banks As

Merged
Total of AH

Banks With
Per Cent
Of Total

Of Total

Resources

Banking

Dec. 31, 1955

Resources

$5,000,000

Percentage

Banking

Of Total

Unuer

Number

;

Per Cent

Resources

(10)

(11>

$238,127

10.5

32.1

1.1

37.1

107,769
86,789

$15,611,613
61,642,613

8.6

20,829,248

57.4

49,851

10.3

11,020,885

4.4

12.2

17,085

3.2

7,463,268

7.2

(8)

(9)

$499,621

(12)
14.5

16.2

4.8

$116,567,627

___

Per Cent

No.

$5,000,000 and

Resources

Per Cent

under

30,399
12,338

395

665

162

113

747,238

—

$131,730,000

24.6

27.0

144,625,000

27.0

12.2

189,007,000

35.3

$10,000,000 and under

2,917,112

1,615

46.2

825,542

237

$1,827,628

TABLE

Some

States in which

Number of

Resources

Number of

of all banks

17,486

313,370

1,548

110

844,964

Michigan

518

$427,575

558,424

Massachusetts

2,798

154

670,985

Maryland

Rhode

1,840

171

638,014

6,544

299

West

Standpoint

(Dollars in thousands)

Large Mergers Dominated Considered from Resources

Tennessee

State

mergers
resources

Per cent of

with

sources

Resources

banks

$50,000,000

7.0

$227,115

53.1

233,764

10.0

170,696

73.0

295.258

16.0

195,562

66.2

645,114

33.0

564,784

87.6
72.8

mergers

Island

re¬

of all

merged

over

merged

132

2,866,136

Texas

20.0

181

242,670

1,243

176,721

Wisconsin

863

404,030

30.0

380,899

94.3

557

150

1,215,263
4,019,146

Missouri

Wyoming

100.0

170.814

1C0.0

170,814

1,467

359,182

289,524

5.5

156,256

52.2

$121,950

3,236

784

$21,494,182

$2,042,847

75.4

Virginia

District

Indiana

Columbia__

•

Totals

38
.

Banks over $25,000,000 and under

1,134,572
2,556,606

34.7

2.4

Resources

31,*55

Dakota

168,635

$25,000,000

Bankirrg"

North

28.7

6.4

194

Resources

233

South

Of All
Banks

1,769

New Mexico

87.9

287,925

13,095

9.5
3.5

52.4

Jersey

Banks

$28,427

Montana

(6)
53.2

$1,204,105
8,793,131

Total

Georgia

5.5

Banks

Of Total
Resources

(5)

Bank

Arkansas

Insignificant

Arizona

Per Cent

Over

III

Resources

Alabama

Merged

Pennsylvania

(Dollars in thousands)

Five

Size of Bank Merged

Number

the Bank

Million

$50,000,000

Number

(4)

•

Merged

$5,0(1:1,000

4.8

23.9

828

the Security

Resources

Of Total

of $40,211,000.

of Reno,

Under

York

branches

Banks With

(3)

Cent

$892,062

198

Mergers

and

Per Cent

$50,000,000

(1)

California

resources

Com¬

seven

Mergers

Over

Banks

The inde¬

Bank

Nevada

Total Resources

Merged

Per

million

State

Million

$50

Resources

State

of all banks in the

$313,370,00.

operates

Of Merged

Resources

million

Were

was

National Bank

Banks With

Banks Wrth

$10

in Number and

Over

Number

Total

under $25

States in Which

Greatest

were

Number of

1950-1955

49.8

TABLE

Resources

with

Number

Banks,

412

___!

resources

had

and

re¬

banks

two

The remaining banks,

banking. But the number of merg-

Banks with

1955,

31,

pendent

branch

The

the State.
these

$210,291,000
$30,672,000 respectively. The

total

Number

Totals

and

Totals

and

31,

States

statewide

Nevada,

Bank

Total

Number

Dec.

interesting to note that
States, Arizona and
permit

Corpora¬

aggregated

Over $10

Over $50 million...

sources

those

Nevada,

Under

;

Non-Branch

vs.

af¬

in 11 other commu¬

the

part

ern

State

States

■

Dec.

First

the

operates five offices in the south¬

Table

merce

resources.

Per

Resources

for

TABLE

Number and

Data

all
31,

affiliate of Transamerica,

another

branches and
resources
of
all
as

of Nevada,

Transamerica

and

nities,

$50

give the total

the States

respec¬

Dec.

Nevada

branches

and

than

banks,

aggregate

Branch

strikingly apparent in swelling

the

5.6%

States .the figure

Bank

re¬

tion, operates one branch in Reno

and

National, and

Trust-Public

0.56%.

filiate

all

given

all

For

the

resources

States

these

National

were

absolute

were

and

the

of
in

1955.

States

merged banks con¬

1.6%

tively

and

that

Nevada,

and

stituted

less

State.

are

addition

1955.

County,

each

danger

resources

the

banks

of the

sources

less

was

the

relatively inconsequential. In

Arizona

five

was

States

banks

Exchange,

those

not

course

indicates

also

States

merged

and

States

banks

all

resources

for

the

III

the

all

Ohio

numbers

emphasize

Table
13

re¬

groups

Over

the

merged

banks

number

31, 1955. The

(Dollars in thousands)

Under $5 million,..

total

the

large

TABLET

Number

number

merged

mergers
in
City during the period

York

insignificant.

re¬

banks

States

This

ing laws on mergers.

banks

resources

III.. In

State

smallest

does

was

In1'15

the

re¬

ac¬

and

which

States

making categorical statements
concerning the effect of branch¬

merged banks in

and

Insignificant

amounted

all

the

largest

million

data,

million constituted only 6% of the
total

all

resources

million,

those

only

the

Finally, the re¬
sources of all merged banks dur¬
ing the period equalled 14.5%
resources

total

the

not

mergers

hecessarily true of all States, but

classified.

all banks merged.

the

8.6%

had

the

limited-area

that

prohibit

the

branches.

of all

less

States

than

ex¬

all

but the

banks

of the

million

Pennsylvania

resources

•

merged
banks.
Merged
banks,
with
resources
under $5 million -

44,

are

merged

resources

37.1%

and

Dec. 31, 1955.
New
Hampshire,

banking States
much more productive of

matter

banks

institutions

for

institu¬

banking

branch

California mergers

the size of the

concerns

resources

those

me¬

striking similarities, per¬
centagewise, in the numbers and

amounted

resources

pro¬

the

showed

only

informa¬

merged institutions. Approxi¬
mately 50% of all merged Ipanks

the Comp¬

■

West

interesting

Second

Res.

were

The

had
gers.

those

most

resources

of the

sources.

re¬

tively.

merged

high of

New

Montana,

banks

merged

total

of the total number

the

which

counted

resources

87.9%

ginia, Wisconsin and New Mexico,
where
the
figures
were
$1.2,

banks

resources

with

constituted

States,

$50 million; they accounted

sources

number

—Chemical

of
banks New York led

aggregate

way

banks

Led the Way

are

in the State, but the

mergers
sources

New
New York

State-chartered mately

and

the

merged
find

Fort

Dec. 31, 1955, amounted
to $555,170,000.

Group

tion.
We

West,

Key

Fernandina,

resources

John

furnish

only

Miami,
Daytona

banks

$50

that

case

three

merged banks.

the number

State

the

some interesting
material on this
subject on which we have hitherto

had

control

"Petersburg,

lington and Perry.

the

Comptroller's
data

Na¬

(re¬

and 28.7%

re¬

under

mergers.

for only 3.5%

banking

States

and

data for New

were

the

only

number

million

numbered

nell,

an¬

Pierce, Gainsville, Madison, Bush-

1955.*

and

alysis

9.5%

First

total

those

York

merged

Coral

from

rearrange¬

ment

New

Lakeland, Bartow, Ocala,
West
Palm
Beach, Belle Glade,
Starke,
Chipley,
Port
St.
Joe,

1, 1950 to

Dec. 31,

the

in California had

31, 1955.

$50

Beach,

United

States
Jan.

over

Jacksonville

merged

resources

Florida

Orlando,

Pensacola,

banks

merged
in

St.

bhnks

number

and

all

with

operated

$203,974,000)

sources

banks

the

Bank

and

addition

resources

fact

cess

those

total
banks

million

existing

Virginia,
Wisconsin
and
Wyoming prohibit branch bank¬
ing. In those States the number
of mergers was one, two, two and
one
respectively, but in the re¬
maining nine states, which allow
limited-area branch banking, the
number of mergers was also in¬
significant. It would appear that
on
the basis of the experience of

both

numbers

under

for

the

The actual

dium-sized

other

and

nounced

brancn

categories

will continue

users

larger

various
smaller

and

the

burdened

lished

years

industry

line-up

well-estab-

with

firms

settled

which

have

shown real ability to develop co¬

operative institutions and which
under
have

vigorous

management

well the funda¬

exploited

mental

advantages

highway

tion have earned and

shipper
and

competi¬

for

operation.

freignt haulers
lished

and

won

grow-

and

strong place in public

And

•

(1) The statistical record of in¬
and

ton

miles

carried

rail

by commercial highway car¬

riers

eloquently

test Les
industry
high shipper favor.
strength

the

and

has been promoted by tne
ability of the industry to develop

ness

effective

instrumentalities

for

cooperative action, needed to

cope

with regulated

status and to pro¬

mote

interests.

industry

strumentalities
and

regional

include

trade

the

for

local

associations,

the rate bureaus and in
stances

in¬

The

iew

in¬

cooperative arrangements

vehicle

interchange and joint

terminals.

rests

gadgetry

primal ily not

privilege but

fundamental

legal

the

economics of

freight
hauling and commercial traffic.
(a)

Highway

benefit

from

freight

low-cost

haul

cost

road-

high¬
way freight haulers, private and
commercial,
pay
through
user
taxes for only 30% of the cos.s oi

maintenance
the

highways

their
these

vehicles
costs

are

include

they
tax

and

construction

and

which

roads

use.

Moreover,
pared down since

contribution

local
as

Federal

the

rails.

Highway administration is largely
subsidized
tal

j&hd all required capi¬

obtained

with

tax-exempt

much

be drxven

ever

penal.y

tages

carriers, up-to-date compar¬
and investigation is readily
isolating a number of

movement

jmnorfont

pffinienrv

factors

—

ame

presentation in

road¬

the fundamental technology
motor transporta¬

commercial

stable

that

interests

cess

capital

various

forms

ticipation
ment.

that
•

But

there

markets
public

equity
cogent

are

Freight

rails
of

hauling

conducted

minimizing

with

fuel

the

aim

ium

haul

assembled

tonnage
linked
bulk

cars

low

and

fuel

and

freight

chain

which because of their

weight

leevvay

price

cannot

operate

for

and

with

surrounding

limitations

its

(1)
i.e.

While

achieved

ment to

wnile
and

move¬

(i) relatively long deiays

the

various

cars

assembled and

division

points

are

Laded

the various

volume of output
with rising increase

grow

overall

growth

national product,

will
to

tend

cer¬

its

centage

annual rate of increase
national product or
industrial production.
Ma-

than

gross

even

I'"'

""VIu—

r"r7/"/

turing of the market for the
dustrv's
the

conspicuous
ton-mile

1951

laied

Highway
commercial
freight
hauling involves generally much
less damage due to
spring
suspension

operation
and

rubber

tires, because stopping and start¬
ing may be much more gentle
than

freight trains, and because
generally less reloadmg
Highway freight car¬
riage is more expensive so far as
fuel and driver costs go since a
loaded car is dispatched off to its
there

involved.

destination
with its

own

its

own

driver

power

operating

~7~

in¬

services is manifested

carriers

that

fact

carriage
has

sinca

re go/
approxi¬

been

level with index

mately at

formance

per¬

1947-9 base at

164/

161, 174,157, 178 (est.)for 1951 arid

following.

years

here

trend

The
upward
obviously retarded

and

readily

subject

tion

though

private

and

interrup-.

exempt
carriage has steadily risen.
Ris¬
ing standards of living and in¬
creasing physical volume of pro¬
duction will
in

the

past

not

Continued

since

in¬

generate

bulk cargo

creases

tend in the future

serv-

page

offer to bti%

Common Stock
(Par Value $1

of the industry

share)

Price $32 Per Share

joins

with

Copies of the Prospectus

characteris¬

staoihty

li.iuKeu

tics which mark the
as

may

be obtained from

any

of the several under-

uritcrs

only in stales in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

operations
whole and

of its larger common carriers.

The industry tends to be a
stable

akin

one

utilities since

service,
grows

and

which

crucial

which

for

commodity

production

Smith, Barney & Co.

period.

over

Company

regard

commissions

lished

for

carriers

the
over

regulatory
interests

A. C. Allyn and Company

Central Republic

Hornblower & Weekrj

Paine, Webber, Jackson & Curti
A. G. Becker & Co.

Bache & Co,

Incorporated

Goodbody & Co.

Estabrook & Co.

Company

Blair & Co,

Hallgarten & Co,

(Incorporated)

Francis I. duPont & Co.

L. F. Rothschild & Co.

McDonald & Company

McCormick & Co.

J. Barth & Co.

Newhard, Cook & Co.

Granbery, Marache & Co,
Merrill, Turben & Co., Inc,

Bosworth, Sullivan & Company, Inc,

Courts & Co.

Blunt Ellis & Simmons

Cruttenden & Co,

Clement A. Evans & Company

Emanuel, Deetjen & Co.

Foster & Marshall

Incorporated

Hooker & Fay

Johnson, Lane, Space and Co., Inc.

Pacific Northwest Company

A. M. Kidder & Co,

The Robinson-Humphrey Company, Inc,

Scott, Horner & Mason, Inc.

Sutro & Co.

Bateman, Eichler & Co,

Crowell, Weedon & Co.

Brush, Slocumb & Co. Inc.
•

stability

overall

II. Hentz & Co.

Elworthy & Co.

J. J. B. Milliard & Son

Finally, stabik'ty in earnings
from

Hemphill, Noyes & Co.

F. S. Moseley & Co.

their estab¬

routes.

distinct

White, Weld & Co.

Walston & Co., Inc.

any

other

utilities, industry operations tend
to conform
only to the average
movement
of
general industrial

tender

Equitable Securities Corporation

W. C. Langley & Co.

Incorporated

the

Lehman Brothem

Stone & Webster Securities Corporation

Bear, Stearns & Co.
First California

Kidder, Peabody & Co.

(Incorporated)

not be stored

deferred

appreciable

BIyth & Co., Inc.
Goldman, Sachs & Co.

universally

lines of

may

advance

demand

all

high-

the, other

general

which

production,

it renders

the
with

common

per¬

fundamental

basis

the
way
and reassembled to be

of jars and concussions;
(iii) congestion and delay at ma¬

and

slower

rail

along

process

rates

moderate

Georgia-Pacific Corporation

their—
high¬

activity and is relatively free from
up
special trade fluctuations. Unlike
dispatched in their respective des¬ other utilities, peak load capac¬
tinations;
(ii)
relatively
high ities obtained through the lease
breakage and expensive packing system do not strain capital or
requirements
due
to
fact
that payroll budgets.
Stability in op¬
freight cars are assembled to¬ eration grows out of the protec¬
gether and started or stopped by tion of the franchise afforded by
a

•

industry,;

whose

one

should

will

growth

497,100 Shares

the

aU-out

a^amst

Strength

freight

are

protect the general investor.

;;

of course
needed regulatory

economic

transported

use

designed

offering of these shares for sale, or an o^er to buy. or a solicitation of
any of such shares. The Ojjering is made only by the Prospectus.

which could have hurt
them badly.

needed

only by subjecting freight

war

spring suspension.
These low
fuel and driver charges per ton of

protecting

carriers

way

developing mas¬
sive pulling power in locomotives
can

rail carriers

regulatory policies which

carriage, though

labor charges by

driver charges an immense

This is not

balance nave appeared to favor

direct

and

economics

rail carriers which have had

the

over

urge

reasons

for making this access guarded

underscored

business from

par¬

invest¬

strongly

ac¬

and

tne

ana

fundamental

and

quality

could and should be given

given inquiry

by the fact that
highway truck haulers have
had to take away freight hauling

tion yields inherent traffic advan¬

tages.'

any

the

protectmn

low-cost

iways in contrast to,high-co^t rail¬
ways. This favorable cost differ¬ jor division points./
ential is due to the fact that

estab¬

too

won

these

broken

/ (3) This growth in carrier busi¬
ness

well

are too

have

which

(2) The growth in carr'er busi¬

commerc

highways

ways,

and

ba^is

sure

taxes.

(b)

regulatory policy.

tercity

the

patron¬

favor

organizational

teeth of

broad

off

age

ex¬

permitted

Highway carriers have the

carriers

shipper support to

carrier

rail

(e)

stubborn

ing

Since

sufficiently

firms of the necessary

advantage of a young and alert and who would be skilled in tech¬
top management which has devel¬
niques of general analysis and
oped a high level of business abil¬
ity without the handicap of vested

higher
us^r
charges; but the range of user
charges that can presently be con¬
templated
still
gives
highway

with

motor transportation and against

•

lated

superiority

carload

distance.

detailed annual and
quarterly reports are available for
public examination by all regu¬

highway program may be financed^
~^ne pro*es"
sional management
througn user cnarges; it is possible that in
this way highway
(f) The strength of these advan¬
commercial freight haulers wdl

early

full

its
'

for

even

strong

terms

ceptionally

has isons

demonstrated

through the experimentation ot

road¬

and

facts

and

standard

com¬

larger

feeder

with

hnaterials

M. Gottlieb

sum¬

terms

mary

form

set*

are

advantages

weight

footing and

that

its

in¬

service rendered permitting of de¬

scription

propositions

highway motor trans¬

matured

homogeneous nature of the basic

water carriage is unusaal;y

and

can

out

grows

three

conclude

portation is solidly established

classifications and to tie

geneous

a
strong position in
LCL
and
short-haul carriage except where

rail

ease

background
transport sys¬

tenta¬

visional

their

assured

this

these

may

mercial

the

which

operations

reporting and ac¬
counting and by the grouping of
the industry into relatively homo¬

by
transportation

truck

with

firm

worked

the

But

standardized

tnan

strong^ credit position^ And these favored; and truck carriage

ora

corpo¬
status.
I

have

witn

truck/

/ will have

carriage

ease

inherent.
The
advantages over long distances where expedi- lmP°rt®nt efficiency factors ame
to
uvu
wiig.uiswiiLcs wiic c cApcui
nable
to
anDroximate
approximate measuremeasurelargely grow, out of. the fact mac tious service and careful
handling' mpnt
fhti
the -fVoicrVti bonloro are a cuK^i^_ are at
freight haulers
subsid-.
premium as in the case oi
Then too qualitative appraisal
iary user of a roadway pianned manufactured goods and perish¬
of a highway carrier is facilitated
for local communities
and indi¬ able
products.
/ /,
:1 since users of the service dis¬
vidual motorists, while tne gen¬
(d) Many industries and com¬ pensed include a large number of
eral policy of open highways pre¬
munities have now grown up with
sophisticated
traffic
specialists
dominantly free of tolls and traf¬
primary
reliance
upon
truck who must rate and gauge carriers
fic restrictions and costed on nartransportation and in many cases in terms of .shipper satisfaction
ro\y
cost-basis , is already an without adequate rail connection and whose judgments couia reauAmerican tradition,.
or
siding layout.
Highway car¬ ily be canvassed and mobilized.
Thus commercial freight haul¬
riage, location and product design Moreover, there are or would be
ers
obtain
at
moderate
charges and distributive
policy have all available
the use of a magnificent highway
many academic special¬
evolved together; for these ship¬
network and the use of a dense
ists in transportation who could
pers, highway carriage no longer
network of local connecting and
be relied upon for disinterested
competes for patronage,

been

converted

chiefly

governments

ways

al¬

public
rate

underwritten

and

have

bonds
state

rail

From

assessed with
high degree of reliability.

„

water

quality of the in-.heightened

with
our

tem.

/ be analyzed and
Partly

rule,

economically

dividual

connections can, as a general

investment

relative

well-equipped
knowledge of

dustry

these
reasons
bulk
products of relatively low value
easily- loaded and moving over
longer distances in carload lOvS to
and ofrom
shippers with siding

little prospect

for spectacular earnings orf dividend growth;
(2) the industry is solidly established, sufficiently stable and
mature; and (3) capital market should be made available to

For

been

that

in volume.

(c)

;

has

expense

unloading while rail carnage will
involve
separate
handling
for
pickup and delivery.
■.//

utilities.

93%
of shipping
adjustable to changes
anything like this is
true it testifies to an impressive
stability potential in net earnings,

break-up
points. Ar-

nally, for full truckload shipments
there will be only one loading and

ing the investment and growth potentials of the larger highway
carrier firms, Professcr Gottlieb concludes:
(1) for the first
time a retarded growth
rate, which characterizes the rail industry, now confronts the trucking industry as a whole, leaving

other

estimated

and

around terminal stations. Fi-

facilities, taxes are much
important with highway tnan

less

involved

expense

make-up

at the various division

than

riving at destination, highway carriage moves more expediiiouoly

In discussing five proposals that should be considered
regard¬

efficient

But the goods move mucn

averted

For Highway
Associate

less

tuesels.
more

Davis, Skaggs & Co,
Hill Richards & Co.

J. A. Hogle & Co.

Lester, Ryons & Co,

operations is furthered by the fact
that

fixed

plant

and

equipment

play a moderate role in industry
capitalization—this is expressed in
the

three-to-one

revenues

ratio

capitalization

annual
—

and

McAndrew & Co.

Manley, Bennett & Co.

Zilka, Smither & Co., Inc.
Hess & McFaul

Henry F. Swift & Co.

Wagenseller & Durst, Inr,

Richard W. Clarke Corporation
June S. Jones & Co.

schedules are flex¬
be adjusted to the
volume of traffic thus saving fuel
and

may

and

en-

charges

payroll
for

while
overhead
fixed equipment,

Stephenson, Leydecker & Co.
October 18,

1956.

Ferris & Company
Mason Brother*

that transport

ible

McDonnell & Co,

Incorporated

Sutro Bros. & Co.

L. J.

Wersclikul

& Sons

(1648)

The Commercial and Financial Chronicle

Corp.

and

Mission

Develop- Continued from

Thursday, October 18, 1956

page

ment-Co.

THE MARKET... AND YOU
STREETE

By WALLACE

Another element

holder

The

stock

largely
week

market

Steels Highly Regarded

was

stalemate again this

with

the conviction

growing that decisive action
either way would have to
await the election results now

only about two weeks

away,

show

any

and, in fact,

highly

with

screen

rather

were

recommended
circles

vestment
the

uncer¬

the
the

over

inevitable

future

being
generally didn't plotted for the company by a
The com¬
great selling pres¬ dominant holder.

Steels

sure

is the fact that one
family is by far the principal
tainty

pany's

program

recent

in¬

years of modernization and
of exploration has also tended to

because

results understate the actual earn¬
There was little in the
general for this year plus continuing ings potential. One tabulation
run of
news, or even in news
high activities into the new places the present market
affecting specific issues, that year. Republic Steel, with the value of Getty at only approxi¬
able

was

than

Even

inspire anything
momentary ripples.

dividend

Illinois

Central

increase

wasn't

sec¬

-S*

Ignored rather completely
the
strong upsurge in

was

auto

production

model

steel

the

new

gets under way,

year

as well

the

high level of

activities.

The

board¬

element apparently was

room

added attraction of

lines and

sumer

titanium,

some

its

was one

con¬

work

of the

mately the

market value of

its

holdings of Tidewater and
Skelly with its own activities

highly regarded without hav¬ in both domestic and foreign
that ing yet discounted the con¬ spheres thrown in for good.

tion for many months.
i!fi

good

suffi¬

cient to snap the
lethargy
has surrounded the rail

❖

anticipated

occupied with trying to
pinpoint the strike-hurt third
quarter earnings reports than
in

anticipating what has all
the earmarks of
being a rous¬
ing fourth-quarter windup.

tinued

improvement in earn¬
ings that has been reported
steadily.
*

❖

Successful Diversification

Among the
,

Jones & Laughlin, fourth
ranking in the industry and
following
Republic in the
ladder, formerly was one of
the more cyclical of the steels,
largely because of the concen¬
tration of its plants in one
geographical area. In recent
years
large expenses have
been incurred in diversifying
geographically and, in fact,
only the top two steel makers
spent more for improvement

where di¬

cases

versification

paying off is
Eagle Picher which was once
closely linked with the erratic
zinc and lead industry. Since
then the company has emerged
as
an
important auto parts
supplier as well as a factor in
the

food

wrapping and plas¬

tics fields.

Diversification has

reached the
of

sales

lead

stage where 70%
outside the zinc-

are

circle.

Earnings have
been expanding as sales in¬
creased about a fourth, and
The Overhanging Election
in the last decade than Jones the possibility of an end to
The
pattern was one of &
Laughlin. The stock, mar¬ government stockpiling of
slow, featureless downhill ket wise, has been somewhat zinc and lead is no
longer
drifting, interrupted by a laggard, not reaching the much of a threat to Eagle.
if
rally now and then to keep times-earnings
if
\
if
average of the
things pretty much at dead other major producers and
The company's work in the
center. The indecision reached
also ignoring the fact that the auto
parts field has kept the
the point where even a test¬
company is a candidate for a stock rather suspect marketing of the October lows would dividend increase—the result

Foreign Aid South of the Equator
—Our Policies and Their Reception
the Bank

of the Republic without

backing of gold or other air-tight
collateral, which the Bank there
would

not

million

furnish.

A total of $37

been

has

received, mostly
in driblets, from the
Export-Im¬
port Bank since 1942.
This they
feel is not enough for a
country
that

"has

played

democracy."
Commerce

ball

with

Minister

17.

the

ground that
for machinery,

being limited to use
they leave a void in
of

care

labor

the'

bill

costs.

for

the

taking

Such

labor

footing

and

other

"supplementary"
to the

expenses applies
Baygorria Dam, which

new

Finance
And

from

Coppers
spond
the

quick to

were

the

price

air

latest
the

re¬

trims

red

metal,

although the high average
price that it has commanded
all

year

make

the

fairly certain
good

year, a

one

earnings-wise. Otherwise, the
wider
swings were in nebu¬
lous s'tuations such

Hawaiian

can

which
tales

ran

company,

such

alone, such

trace

years.

merly

Pacific

rather
Canal
to

was

There

the

Getty Oil, for¬
West°rn,

issues

hard

Uruguay's

not

consumption.

the World Bank, to create
money

for

added

the

against

from

stable

us."

Here, too, was
"blackmail
charge"

and

the

objection to
loans because they want

us;

Ex-Imp
to buy in the
European markets,
are cheaper and the desti¬

which

nation

most

their

forge into
even

after

longer

was

some

Bethlehem

that

shake ojjLthe doldrums of
'

exports.

any

se¬

the

tinker-

Steel

was

confirmation of such talk

circles, however.

any

the

CLEVELAND,
of

name

save

specu¬

angle added to thelbasic
of

the

since

analysts,

the

market

rather

life

stock

mundane

because

the

setup is

one,

BUFFALO, N. Y.
Securities

has
the

one

since

holdings

has

Tidewater

companies,

the

Universal

formed

Rand

investment
are

with

Building
.

busi¬

George

Makris

Kakouris

three

Finance

dall
the

and

ANGELES,
Green

staff

Mission Sterling

215

was

to
million

arrearages

and

$60

iron

which

Ex-Imp

been
B.

West

added

steel

and

large credit, sub¬

consummated.

that

equipment,
goods, and other
severally from
the Export-Import Bank, the World
Bank, as well as from the U. S.
Treasury

Department

stabilization.

have

for

worry

not

in¬

too much

about public recognition; and, con¬

that

versely,

bother

not

enough about identifying ourselves
for recognition.
0
In

Ecuador,

time

the

interviewed

new

the

President's

In¬

augural in early September, Min¬
of

Economy Frederico Intri-

voiced

the

need

for

four

negotiating with the United
for
surplus
commodities

States
under

140.

Independence

And

Harmony

Panama

Instead,

aid

not

encouragement
tax

relied

and

issue.

fa¬

corporation laws

bring in foreign
Successful as this policy
on

shown

greater

indenendence

uniquely owing nothing,

monious neighborly friendship)!

Noyes Elected to NASD
District Oontmiitee

partner, Hemp¬
hill, Noyes & Co., New York, has
been elected
member

District
mittee

cur¬

and

deficit

(New
New

1957

billion.

over-all

the next

for

need

$20

Association

will

succeed

Edgar
J.
Loftus, W. C.
Lang ley &

Dealers. He

$1V4

S., during

million

York,
Jersey,

Securities

Co.,
Noyes

New

York, and fin¬

which
has
received
a
$37.3 million
from
the

Bank,

Com¬

No.

of the National

Chile's Alms

Connecticut)

her

hopes to get $400 mil¬

five years.

Blancke Noyes,

country's

—

mone¬

tary situation accompanied by ah
international relationship of har¬

expects

1956

total

lion of this from the U.

ish Mr. Loftus*
term

which

expires Jan.

15, 1958.

being the latest transaction,

wants substantial further

from

the

Institution.

stress

the

fact

not "dunners" and

want

would

grants
be

With Haseltine, Gilbert

millions

Although

the country's government officials
are

Securities Co.'

often

payments,
including
foreign debt service, amounting to
$200 million; contributing to his

Seventh

with

firemen"; that we
"right" govern¬

come

Argentina

want

previously

our

involved

the

too

tervene; that

monev

capital

needs, should

1953

Franklin

that

Minister

this writer, explained
needed
for transport

total

at the time of my visit

Blanco,
in
discussing the "aid" situation with

World

Calif. —Ken¬

Samuel

Company,

Street.

has

care

for

was

Chile,

(Special to The Financial Chronicle)

LOS

back

and

Blancke

•

Peruvians, in¬

grounds

"pot-shot

ment

capital.

and

years,

exporters,

Attitude

million from

Samuel Franklin Adds

Mission

—

been

Partners

Miami.

ana¬

Skelly Oil through the two

past

got $125

will

Argeros, Christ Y i a n i 1 o s and
George Vezos. All were formerly

that

important

engage

the corporate

confusing

the

balance

offices

satisfied

Argentina, a country still living has proven in the past, an extra
post-Peron, off its capital, whofre fillip has just been derived from
influx of oriv^te f^eign capital the nearby discovery of oil.
Only
hocboory io«s than $70 million in already
oil-rich
Venezuela
has

that

Universal Securities

conducted

not

are

rency

with

various uncertainties inherent
in it. .For

firm

issue.

tify its j market price in the

had

Ohio—The

Borton

Simon,
Inc., Euclid Building, has been
changed to Ross, Borton & Co.,

fully jus¬

view of most market

particularly

Ross,

authoritative

vorable

durable

Inc.

lyst

There

those

present aid policy, and
necessity for businesslike

Financial

ment.

sequently

necessarily
with

Now Ross, Borton Co.

foreign situation in

future

Domestic operations

has

not

other dif¬

impression was
here, on the part of the
private citizenry as well as officaldom, of "rich uncle" resent¬

negotiating for

They are presented
those of the author only.]

Nevertheless, Getty seems
have reacted enough to
ig¬

culties had been found to
per¬

would

bureaucratic manner; that we

are

And the distinct

plant,

coincide

that

given

this

"Chronicle."

makes extra work for

in official

article

stated

five

of future devaluation

1955

Bank

ficulties.

expressed

Her

us.

World

million
dollars
from
the
long-term
basis.
And, reitf rating the demand made World Bank for capital goods for
industrial
and
at
the
agricultural
de¬
Bogota Conference, that
loans from our Treasury should velopment puposes. Meanwhile he

America

1954 to take

views

from

the

our

ister

I The

aid

ago

enhancement for

from

Pardo

dicting

surpluses should be sent to South

much

❖

1957,

loans

understood

It is contended, too, that our farm

obviously, would be that

time

way out of the anti-trust diffi¬

merger.

was

the

over

improve¬

ment in auto business in

ness.

flimsy reports that

mit their

was

this trouble spot.

nore

year

by the Suez
Eagle.
difficulty and has yet

strength
Steel

last

♦

$36 million. Questioned
by this reporter, Finance Minister

other

Minister

come

Peru

convertible

loans

Juan

should

by
a

amount to

credits

Sought

restrictions is thoroughly realized.
But
I
heard
complaints
from

Minister

Argentina's

comparable periods
when there was a

hit

attractiveness
on

Lukens

high territory

rather

recent

one

those for

hopes despite rather drastic improvement
market progress in
1954 results.
Any

marked

fol¬

ing with Youngstown Sheet
and

troleum

the

sharply higher profit state¬

cret.

pe¬

if.

which continued to

ment

showed that the managements
are
still sticking to their

lative
was

lowing in issues

rumors

officially.

new

its

once

denied

There

Ameri¬

sharply on
liquidation for the
only to back up

abruptly
were

Steamship

wants

past

and

production,

currencies

the years, which
wheat, fats, and oils
under
PL 480,
as
well as Point
Four aid ($2.8 million this
year),

Arroyo Torres: "Your aid is al¬
ways talk, with actually nothing
done; and is confined to purposes
Liberal

Eu¬

currency -over

that the

Finance

pay¬

that

from

come

enjoying

gets from

with

and

Bank

be in the form of local currencies,

the

by the World
by themselves.

Complaint From

stresses

European

Peru,

partly

Chile

necessary

avoid transfer difficulties.

$30-billion cost has been financed

facilitating repayment in the event

clear

imports.

means

presently

insufficient

her

for

rope

wise, with the result that it

welcome

furnishing the

part" must

large expenditures is selling at a conservative
and set the
stage for a worth¬ starting to contribute impor¬
times-earnings ratio and of¬
while advance, but the near¬
fers a yield of around 5%.
tantly to profit.
ness of the
balloting now has
However, despite the troubles
Oils Favored
pretty well made such a pos¬
of the auto
industry, Eagle
Oils were still a highly fa¬
sibility unlikely.
Picher's earnings continue to
if
:Js
;J;
vored group, and fund reports
show comfortable leads over

ment

good

projects. Loans from
Export-Import Bank are held

the

her

They feel that

country must have foreign
capital to build up the productivi¬

roads, the railroads, ports,
welfare and sanitation, on a basis
specific

operations

their

need for

mining

copper

credit worthiness.

Foreign

definitely that "your aid
insufficient"; spelling out the

con¬

tribution of the vast international

expressed

Gonzales

himself
is

they wish to emphasize the

that

(which
two-sided

they

(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—Eugene
N.

Sloan

now

event

feel

mistake),

affiliated

with

Haseltine, Gilbert & Wilson, Inc.,
108

South Ninth

Street.

Number 5578

Volume 184

The Commercial and Financial Chronicle

(1649)

far from

not

Our

Reporter

Crop Situation Above Water

Governments

By JOHN T. CHIPPENDALE, JR.

As far as crop production is
concerned, American farmers have
an

out-

standing

job

done

recent

despite

years,

acreage con-

trols

sections

some

unfavorable

growing

somewhat

ease

the

New

Treasury

Money Bills Used

year,

restrictive

able to obtain $1,600 millions in

was

bills.

the

new

was

had

bills

not

level

far
the

dicated

crop

1945-1954

was

under the

16%
of

1,148,289,000 bushels. However,, we can get
along well enough for a while
average

iff

margin.

supplies will exert on prices re-

Most of the other summer-har-

....

yield from 4.75% to 5.125%, ac-

Cotton and Other Fall Crops
The 1956 U. S. cotton crop, now

being

sa'e

some,

to the authorization of the Inter-

crops did fairly well, with
perhaps the major exception,
Although the oujtturn was the
smallest since 1945, total supplies
should suffice. Ample supplies of

able for the 1956-1957
was

the flaxseed crop

market is

est

record.

season.

The

the fourth, and
the second, larg-

Farmers this

year

the third largest hay
crop
ever,
but spot supplies in
drought-stricken areas may
be

showing no signs of abating and indica¬
long-term bororwings will continue to be heavy
for the balance of the year at least.
There are reports that many

harvested, is not burden-.
since indications are that
domestic consumption and exports
will exceed it. Although the carryover last August 1 was hugearound 14,500,000 bales —a large
part of this reserve was in government hands and will not now
glut commercial channels.
The
good present demand, tfug.the
influence of the CCC loan, could
strengthen cotton prices.
The indicated dry bean crop is

'be certificates are subject

state Commerce Commission,
The

issue

ntesel-electric

secured

road

concerns

locomotives and 2 Diesel-electric
locomotives, estimated to cost $3,408,074
Associates

the

offering

ter Hutchinson & Co.

This advertisement is not,

offering of these

buy

any

will

next time the

Dec. 1.

than $9 billion of 2%%

ernment

James McAnsh Joins

Merrill Lynch Firm
CHICAGO, 111.—James McAnsh
has joined Merrill Lynch, Pierce,
Fenner & Beane, as Manager of
the grain and produce department
the firm's national commodity

division, with headquarters in the
Chicago Board of Trade Building.
Mr. McAnsh has had a long and
varied experience which qualifies
him for his new position.
Upon

World

after

I, he entered the grain busi¬

Winnipeg
became

Canadian

and

subse¬

associated

Wheat

offer to

Common Stock

Price $10.25 per

Board

with
and

UNRRA.

1948

he transferred

ricultural
also

Organization

Consultant

and

the

was

World

Mr. McAnsh went back

1951

private

President

business.

compliance with the securities laws of the respective States.

Van
A. C.

be obtained from the undersigned only
undersigned may legally offer these securi¬

may

Alstyne, Noel & Co.
G. H. Walker & Co.

Allyn and Company

Incorporated

Francis I. duPont & Co.

Blair & Co.
Incorporated

A. M. Kidder & Co.

Crowell, Weeden & Co.

Reinholdt & Gardner

Prescott, Shepard & Co., Inc.

Johnson, Lane, Space and Co., Inc.

became

Interoceanic

Com¬

William C. Roney

& Co.

Chas. W. Scranton & Co.

Straus, Blosser & McDowell

modities Corporation in New York

City,

prominent firm in inter¬

national

commodity trading.

own company

export

trade in

in the grain

Vancouver

branch operation

Bateman, Eichler & Co.

First Securities Company
of

For

the past year he has been operat¬

ing his

ties in

Bank.

missioners of Canada.

loaned by the Canadian Gov¬

became

the United Nations Food and Ag¬

also with the Board of Grain Com¬

In 1944 he

Deputy Director of the Food Divi¬
sion
of
that
organization
and
traveled
throughout
the
world
procuring food supplies for relief
purposes. When UNRRA was dis¬
banded in

issue.

Copies of the Prospectus

Burndy Corporation

in those States in which the

quently

cer¬

The Federal Reserve Banks and

of the terms that will be offered to the owners of this

demobilized

solicitation

225,000 Shares

agencies, according to the latest available figures, were owners
of more than $6 billion of the maturing certificates, which is
two-thirds of the issue. The remaining one-third is held by other
investors.
Commercial banks were not important owners of the
2% % Dec. 1 notes, since it is indicated they held only $725 millions
of them.
This operation will be another test for the money mar¬
ket, with the refunding of the holdings outside of the Federal
Reserve System most likely to be rather important in the way

being

circumstances to be construed
or

government will be in the m<$ney market

be to refund the slightly more

tificates which mature

of such securities. The offering is made only by the Prospectus.

Treasury Faced With December Refunding
The

and is under

securities for sale

with

in Winnipeg.

Scott, Horner & Mason, Inc.
October 18, 1956

are:

The Illinois Co., Inc. and McMas-

which have not been in the market for funds

long time are about to do so, with bond financing supposedly
the way in which the bulk of it will be done. This will result in
additions to an already sizable corporate calender. As far as taxexempt issues are concerned, there is evidently going to be no
shortage of these securities, with indications that the coming
election in November will result in the approval of financing
which will be coming into the tax free market in the future.

switching

1& Uiesei electric^ road switching

that

are

industrial

was

oats

Demand for funds is

the

yesterday'(Oct.

ottered

vest

produced

ness

Halsey, Stuart & Co. Inc., and

as^cUtes

carryover

favoraableChsaignelS' ™S ** " 3

Prospective Corporate Borrowing Heavy

War

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

still very

how much
these heavy

Just

pressure

f a r 111 commodibes. bushel on the farm, could but-

s.u/:oUS

barley crop

for

wide

downward

17) $2,715,000 of New York, New
last July 1 tress prices. Growers and proc- Haven.
Hartford
RR. '5%%
topped one billion bushels, but essors have discussed the prob- equipment trust certificates, mamuch of it was in government lem of heavy
soybean supplies
*
10__
.
hands.
The
loan
program
will with the government, and further 'urlnS annually May 1, 1957 to
again siphon a substantial portion government moves may be made-1971, inclusive,
of the current crop out of com- to help prices.
The certificates are scaled to
The

government would also have paid more than 3% for its tempor¬

tions

coming Presidential election, but
I hope they will honor the dic-

new money

money

1956 soybean crop

mains to he seen. The test should
without
billion
bushel
wheat come soon,
with marketings at
crops,
since the bread grain at their seasonal peak. The governpresent constitutes one of the ma- ment loan, which averages $2.15 a

not

borrowing, which is definite proof that the
tight.

advances.

tates of their conscience and keep
Wheat did somewhat better this by far the largest on record, and the welfare of the country as a
season than last, but the total inwill exceed total requirements by whole elearly in mind,

barley and flaxseed will be avail-

ary

likely during heavy the ultimate solution.
I do not
this fall, the market know how farmers feel about the

shipments

The

been payable
through the tax and loan account of the commercial banks the
money

weakness

should average higher as the sea-

1955.

son

taken from the sale of the Treasury

Treasury

high

drastic? price
tight from time to time. I expect decline this fall,
grain and hay prices to average
higher over the longer term.
A Glance Ahead
.
The course of farm prices is
Outlook for Corn and Soybeans vital not only to farmers themThere is no question as to the selves, but to the nation.
The
adequacy of corn for the current trend has been moderately downseason.
The above-average 1956 ward, for several months, but the
crop,
plus the large carryover drop from mid-August to. midfrom previous years, spells record September was only 0.5%. While
total supplies. Since the govern- further slight near-term weakness
ment owns or controls more than is possible, the future is uncertain,
1,000,000,000 bushels, and since I
Concerning the problem of farm
forecast that a sizeable portion of surpluses,
acreage
controls and
the 1956 crop will enter the loan, the
Soil
Bank
program
could
free stocks need not prove bur- prove quite helpful for a while;
densome.
While moderate price but I fear we have not yet found

Summer Results

average cost of

than offset the loss which

it should

under

relatively

2.627%, because the payment of the 91-day
Treasury bills will be made through the tax and loan account
in commercial banks.
After the subscriptions had been known,
the deposit banks in many cases sold out their new money Treas¬
ury bills, with the result that these 91-day obligations also went
above the 3% yield basis. This was not a dissimilar performance
to what had taken place in the regular weekly offering of Treas¬
ury bills.
The commercial banks took a loss in the 91-day new
money Treasury bills, which were obtained at an average rate
of 2.627%, when they were sold out at yields in excess of 3%.
However, these institutions have the government deposit
from the new financing, which will probably remain with them
long enough to enable them to make sufficient money to more
an

this

outturn

Roger W. Babson

Buffer

do
for

total

record

conditions, because the seasonal demand for funds, along with
the Treasury new money financing, would have made the money
markets so tight that it would have been carrying matters a bit
too far at this time.
There is no change indicated in the general
over-all policy of active restraint, in the light of the modest
amount of relief which is being given to the money markets. As l
long as the inflationary pressures are as strong as they are, there
will not be any actions taken by the powers that be, which will
encourage an expansion in bank credit.
On the other hand, the
needs of industry, the farmer and the government will be met,
if it has to be done at advancing interest rates.

The

AT-

look

not

The money market is still very tight in spite of purchases
by the Federal Reserve Banks of Treasury bills in fairly sizable
amounts.
It had been expected that the monetary authorities
measures

con-

ditions.

No Respite From Tight Money

take

and

though

is on the heavy side, but the
government's diversion program

crop

should prevent any

will most likely be another test for the money
market unless the powers that be, decide to give additional help
in order to keep it from tightening more.
The high yield which is available in Treasury bills is attract¬
ing a considerable amount of money, especially some which had
been in other forms of investment previously.
Competition from
new offerings of corporate and tax exempt issues is
keeping the
government market in the background.

have

these items will work higher over
the longer term. The late potato

stocks expected to enter the market and anticipates
they "need not prove burdensome." Mr. Babson judges the
soil bank program to be a temporary, but not ultimate, solution.

demand for money,

would

average and should
needs, The rfce out¬
somewhat above average,

for

but need not prove burdensome. I
now forecast
that prices of both

securities analyst examines the impact of free

farm crop

-The government market is adjusting itself to the new money
raising operation of the Treasury and, despite the tight money
conditions and the very large demand for loanable funds, is mov¬
ing in a rather narrow range. The tone in government securities
has improved in the past two months although it is still too soon
to predict that it has gone thrbugh its worst.
The refunding of
the Dec. 1, maturity which is a sizable one, as well as the seasonal

.V..

suffice
turn is

By ROGER W. BABSON

Well known

■

H. Hentz & Co.

Chicago

Wilson, Johnson & Higgins, Inc.

The Commercial and Financial Chronicle

(1650)

By 1976,

America Means Growth

will

full education for all

taken

matter

High School graduates

problems.

ppf

Pall Ahead

Board,'National

of the

increased

factors.

population,

increased

upon

earning

Mr. Baker recommends that

national election

campaign.

this growth

psychology is a
positive faith in the capacity

very

of the

long upward trend through
for
re¬
expenditures

useful and

forces for growth are greater than

And

writer,
captured

from

short

boundary

com-

t i

efforts

ely
period. I
v

mention

poli¬
be¬

timely.
sure

H. Baker

and

know that my
will

strictly

non-

joke

right that

be concerned

and

"Typically American." How of¬
we say this, and yet what
»do we really mean? What is typi¬
What

America?

of America?

sence

this great

is the

What is

es¬

of the land

tion to

and

of the popula¬

produce 40% of the world's

Is it because of

natural

our

minerals,

sources, our

our

founding

To all of these

questions we can
answer a very definite "yes."
But
there must be something more.
Certainly, through improved tech¬
nology and productivity,-our
standard of

mously.

living has gained

Last

average

soared

our

year,

This wide

$5,520.

income

provided

for better living

means

enor¬

for instance,
American family in¬

distribution
the

by all

people.
Ogburn

has

ob¬

served, "the standard of living, as
by money, has doubled
within

the

first

half

century." This trend

the

20th

has been de¬

scribed by Arthur F. Burns, Chair¬

President

Council

the

grpat

can

progress?
writers

Advisors,

social

revolu¬

history."

Source
How

Eisenhower's

of Economic

tions in

ica's

Progress
account

Possibly

who

for

some

this

the

have

studied Amer¬
past and present have come

understand what Aiherica really
is.
I think that Malone, Thomas

Jefferson's

...biographer,

captured

of the essence of America
in Jefferson himself. He described
the author of The Declaration of
some

Independence as a man to whom
nothing relating to human life was
ever

really

States.

It is

not

rigid ideal toward which the citi¬
zens

strive.

symmetrical.

band, it isn't

isn't

precise

neat,
On

the

other

disorganized mud¬

plays

America.

when

assembly line. The raw material
pours in from many places, and is
combined

ways

static. To

into

substance

which

through each addition, al¬
improving and never quite

Jefferson, the glory

growth.

Here, the impossible of
today is the commonplace of to¬

increasing extent,

made

are

fair

read

and

surely our economy will
have ups and downs, but our plan¬

ning

too

farsighted

by''short-term

fected

af¬

influences.

Business will be satisfied with idle

capacity, temporarily, just to as¬
enough later. We are depend¬
ing on capital spending to carry
sure

through

the

months

immedi¬

ately ahead to the prosperous years

beyond 1960.
My own

company, for instance,
currently engaged in a fiveyear, $115,000,000 exoansion uro¬

We launched this program

gram.

February of 1955 and have al¬

ready made much headway. Our
plans will not be influenced by
short-term setbacks.

beyond,

Growth

are

America's

Fantastic

look¬

future.

the status quo

It is difficult to adequately de¬
scribe the fantastic changes in the

immediately ahead. We are
a period defying accurate
description.
The
United
States

years

entering

faces its most dynamic era

Twenty
we

from

the

now,

200th

of The Declaration

sary

when

anniver¬
of

Inde¬

pendence, space travel will have
been accomplished. Man-carrying
satellites
miles

will

circle

above

the

thousands

earth.

Guided

missiles may land on other plan¬
ets. We will be living in a world
that by today's standards will be

nothing short of fabulous.
By 1976, we~will do something
about the weather instead

talking
and
and

will

about

sunshine

it.
will

controllable.
be

Local
be

rainfall

adjustable

Nuclear

principal

our

of just

energy

source

needed.

Business and

of the necessary cash for
expansion of college facilities and

will

able

have

growth

trend?

by-passed; it won't be

exist.

defeated

well

two automobiles.

Air conditioning will become uni¬
versal and 99% of American fam¬

ilies will have television sets.

Congress

construction

killed

bill.

four

over

should be voted

The

and

the

field

community de¬

American cities. The down¬

our

grading and decay of business cen¬
ters and residential' neighborhoods
affect

all

citizens.

our

Beyond

slums and

blights, traffic, streets,
playgrounds,
recreation
centers,
congested
downtown areas and,
too, the problems of mushrooming
suburbs are involved in commu¬
nity planning. No longer can com¬
munities

afford

problems

work

Puffalo
tion

attack

basis.

Chairman

Redevelopment
with

contact

of these

many

problems of urban renewal.
we

feel that strides

toward

Here,

being ma^e

are

lem

creased

chart

course

earning

other

power and

behind.

lagging

are

They must face

to the prob¬
accept disintegration.

Now that our

live in

should

increased population, in¬

people

afford

can

longer content to
horse and buggy age. Yes,

are

America

has

order

our

constantly

house

put

growing

economic factors.

nation

just

tinuing demand for better living.
And long-range planning is vi¬

And, of course,
important, must be the

"""~ce

capital for this

expan¬

sion.

benefit

growth
faith
nize

important
are

and

Need

for

vita1

people. They must have
confidence, and recog¬

con¬

substitute for hard-head-

industrial

forward

our people—men of char¬
acter, loyalty and knowledge, men

who

started

some

minor

oosi-

tion and

willing to reach out and

are

headaches

Always

seeking

for

themselves.

better

way,

labored

that

our

For

the

essence

ideals

reach

his

steel

ore

have

for

out

Afn'ca to

Crude

oil.

bauxite, managanese, nickel, wood

side

our

and

other

m a n v

largely from out¬

must

recently,

the

promoting

life

the

rapid

under

America

nobody

Cadillac, but they

would die for the principles of

that

system

the
exist¬

brings it into

ence.

In such

ficult

dynamic times, it is dif¬

stop

not stop

quietly reflect

and

values.

our

However, if we do

occasionally and thought¬

fully examine,
in our civilization,

re^ly, .cpunts
could lose

perspective, lose these great spir¬
itual values^

They

essential for they pro¬

are

vide direction to the change, mak¬

ing

pattern to the growth.

What is America?
America

I suggest

that

growth.

means

Carolina Power &

Light

Common Stock Offered
Public offering of 500,000 shares
Carolina Power & Light

l°ad

economic

Com¬

common stock
at $24.37V2
share is being made today by
an
investment banking syndicate
jointly managed by Merrill Lynch,
Pierce, Fenner & Beane and R. S.
Dickson & Co., Inc.
Net proceeds from the financing
will be used by the company to
repay
bank
loans
incurred for
construction purposes; for the con¬

pany
per

struction of

other

new

facilities and for

corporate

The

purposes.

estimates

company

that

its

con¬

struction

expenditures
during
1956 will be $18,000,000, of which
approximately $9,800,000 was ex¬
pended in the seven months ended
July 31, 1956.
Carolina
Power
&
Light Co.
with its principal offices located
in Raleigh, North Carolina, is an
operating utility engaged exclu¬
sively in the business of generat¬
ing, purchasing, distributing and
selling electric energy. The com¬
pany is
engaged in business in
North

both

cludes

Plain

extending

North

and

South

Carolina

and

border,

and

section

and

as well as an
North
Carolina

estimated

South
area

and

city of Asheville. The

total

served

excess

Coast

River

Piedmont

the

territory

Atlantic

Pamlico

■

Carolina

North

the

Carolina

around

31,

the

western

is in

Carolina

Territory
served
in¬
substantial portion of the

between

For
take

have

better

wou7d die for

borders.

America

of life are

way

values

religious beliefs.
Butler, writing in the
"Harvard Business Review," put

Coastal

from Can¬

and

mills.

come

our

and

Jack

Carolina,

shipping in

basic

the

own

Carolina.

the

great

ada. South America
our

sight

evolved, the gift of every man to

have

But they believed it

lose

not

lower

all

previously

must

values upon which our very exist¬
ence as a nation depends.
For of

the

items

gVDsum.

closing, may I say that while
plan for the future, while we
recognize the value of change, we

Iron Range, once t^e workrs larg¬
est source of ore, is almost gone.

chrome

trying to locate a
unknown
deposit
of

come

Just the opposite is true.

pulp,

thousands of dollars

afraid,

under

making America. At Na¬
tional Gypsum, our people might
Indiana

South

are

one.

Conclusion

the

men

wasted

glorious

Mesabi

feed

have

material supplies are

raw

instance,

better product, a new product, an
improved steward of living, those
are

raw

expanding

our

will

Americans,

hmitless.

create

keen

foreign countries.

the ranks.

countries to understand why these

American

machine

materials

raw

from

long

from other

the

years,

supply of

runnings A
rapidly increasing amount of these

acquired their knowledge
by patiently working up through
It is hard for people

Materials

will be

imagination

and

Raw

During the next 20
great demand of the
economy
materials

out

from

tally essential in another sphere.
Greatest Asset

Mo~t

thinking and planning
If we do, the future

to the future.

will be

The

Founda¬

has brought me into face-to-

face

modern

areas

task is to lift our sights,

these

hit-or-miss

shall have to

these

all
our

to gear our

velopment, there is much to be
done^ Blight is a serious condition

it, they

life,

years,

passed in

the next Congress.

population of the
by the company

2,000,000.

the

12 months ended July
the company reported
operating revenues of $61,-

1956

total

growth of countries Producing

7*>8.000 and net income of $9,887,-

there, and that it could be found.

materials.

000.

They proved they

economic policy must be

better

were

achievement.
kind

young

were

managers

right and
of their

You cannot

buy this

dedication.

men

was

because

men

will

From

essential to

such

seasoned

come

our

future.

other aspects of our American
We must
give more atten¬

tion to other fields,

two

instruc¬

bill, which would have
S1.6 billion for school

provided

Management must
long-range plan for the

our own.

school

cation,

community

including edu¬
develooment,

and foreign economic
Jn

education, American eolWes

their

years.

facilities in

Colleges

face

the

staggering

United

selling in

a com¬

petitive

weld

enough

potential

market

Cur

customers

Club Elects Officers

for

has

It will demand

sum

cip7es of

what

Peter

"growth"

regarded

recent

meeting held by the
of
Spencer Trask
Co., the following officers were

25-Year
&

Club

elected:

John

McNeill,

Presi¬

dent, Marion Walling, Vice-Presi¬

"aid-to-foreigners."

dent, George G. Corgan, Treasurer,

long-range com¬
necessarily to any

Marie

our

own

of monev, but the prin-

continuing program.

We must also contribute Ameri¬

skill in

future

rather than

termed

must

investment

stated

participation in the indus¬

development

Drucker

can

Spencer Trask 25-Year

w'th

ani

large volume of goods.

our

mitment—not

policy.

and universities will need to dou¬

ble

The goal of our foreign

States capable of

rountries

own

college

Unfortunately,
its

citizens will

tion.

others

economic

current

are

Finally,

give of

the

much

improvement

have

shall

cilities.

the

Education

Likewise, business must provide

life.

our

draw

must

college graduates.

automobiles will be driven by nu¬

Many of

education

workable plan to meet this
urgent need for more teachers,

too.

will

development.

But

What

portunities and planning economic
provide knowledge, advice, tech¬
nical assistance and education fa¬

rate,

present

power.

Automation will reach the home.

the

teaching by theri.

American
up

trial

clear energy.

for college

planning is so important in
business, it should be necessary

Large
airplanes,
ships,
railway locomotives and perhaps

hapoen

incompatible.

men

years

celebrate

1970,

to business that doesn't follow the

ex¬

decades ahead.

personnel

present

leave before

better city. Other cities,
have
made
great progress.

and

asset is

Changes

125,000

Thursday, October 18, 1956

total of 375,000 new teachers will

thinking in business. Our greatest
Coming

Since

Most

edness,

morrow.

•An address by Mr. Baker before the
25th Annual Meeting of the Controller In¬
stitute of America, New York
City, Oct.

here

role

homes

1956.

vital

decisions

finished.
We utilize the past, but we are
not
chained
to
it.
America
is

college teachers to be trained.

new

Plan¬

retreat at the first sign of a cloud.

based

America may be compared to an

undirected.

barometers

future.

fa¬

the basis of long-range considera¬
tions instead of a rush to expand

dle, although no single mind can
comprehend or control its com¬
•

American

ing

the United

for

measured

"one

and

pansion and prosperity in the two

William

man

which it has bred, is

grows

fathers, our freedom, our form of
government?

come

habits

ning

America" is not just a svnonym

cosmo¬

in the world?

credit this to

thrive

Do we
have the most

politan population

re¬

harbors

our

waterways?

because

the

attitudes,

America.

us,

area

goods?

Can

and

ponents.

the world

and

motion—into

and

country that enables

with only 6%

the

forms

it, for

the heart and soul of

/instance in

history

our

it,

put

sometimes rapid sequence of con¬
secutive
change.
This sequence

ten do

Kovwenhoven

out of cities, a long, complex and

about them.

cal

politics,

about

over mountains
million other places.

typically

tics seriously. While it is
it

John

However, we do take our poli¬

back

plains,

seas

travels

sprang.

com¬

Likewise, our future may plunge
us into uncharted, outer space.

political.

man^ndMn/ihjjSipyes

the

across

Melvin

comments

American

to the

past, like our future, is not

munities

fee relieved

be sgt

rooted in the soil from which

will

you

of wonders,

land

seems

Our

what is not yet done is only what
he has not yet attempted'to do."

tics merely
cause

Tocqueville.
essence in

motion and every change seems to
be an improvement ... no natural

judgment,

pa r a

the

in which everything is in constant

would, in
a

part

"America

the

administra¬

cover

this comment:

change in
tion

Alexis

could

that

result

the

believe the French

production

cilities and better marketing.
But this change is not unbridled,

ungoverned

travels through

his

United States, I

partisan poli¬
tics. Any slow-

beautiful.

improved

By 1970 they will
This means 250,000

500,000.

American economy to sus¬

tain

man's life lay in his per¬
struggle for something more

teachers.

will retire

tremendous

present, colleges employ 250,-

only about 75,000 will be prepared

expanded

sonal

Con¬

will exert

years

And

of any

trary to much that you hear, the

Twenty Years

impact on our economy. Change
is the dominant mood of our times.

period.

have

will

questions that the next

one

search,
the midst of

now

need

The

labors.

years,

Next
No

material

are

assumptions of
power
and other

supplies. Opines that any slow-up that could
result from a change in administration would last only a

000

their

for

expand to carry a greater
share of growing enrollments.

work six hours
and possibly earn

million people gainfully em¬
ployed compared with 67 million
at present.
•

rapid economic development of growth countries
abroad, and that we discard our delusion of possessing Limitless

short

will

People

moting
raw

may

week

each

nation,

take the lead in pro¬

People

50%

Gypsum Company

growth plans based

range

must

less

changes and picturing the United States
on the brink of its "most dynamic era of expansion and pros¬
perity," National Gypsum Chairman advises business to establong

nonexistent.

day.

In predicting fantastic

lisfa

are crowding campuses
in record
number^.,Colleges and universities

live much longer than they do to¬

By MELVIN If. BAKER*

Chairman

Infectious diseases will be

almost

For the Long

course.

diagnosing growth

op¬

Plans
dinner
to

Bruder, Secretary.

were

for

be held

Hotel

made for the annual

the
on

Dec.

Sulgrave.

club

members

7, 1956 at the

Number 5578

184

Volume

The Commercial and Financial Chronicle

springs

Bank Sees Record Public

Spending
Jeopardizing Free Enterprise

(1651)

and

individual

incentive

New York

initiative, enlarge the savings

flow

take

some

policy

as a

and

off credit

the

load

The

block against

availability of

Bank, in analyzing the present cost and

risk

deprecates highest Federal appropria¬

money,

history by Congress just ended, and

tions in

mends

once

state

October

"Bamt
Letter" of The First National City
The

monthly

Bank-notes that

leads

and rising inter-

est

money

There

w,.

objects of

Hi«?ru<;«;inn

nnhlir

'•
discussion,

public

people, to be sure,

some

are

—

become

have

rates

widespread

who express doubts that the Fedic

™lir»v

policy

pnnnffh

c+rnn0

strong

the

enougn

enveloping

But

credit

restrictive

Reserves

eral

arrest

spiraL
practical
difficulties of raising funds. Bankers freely confess to their inability to cover ail loan demands,
Home-builders, faced by financing
problems,
have
curtailed
their
planned
operations.
Industrial
leaders are giving their new projects another look, moved by the
need

wage-price

is heard of the

the

measure

and

cost

availability of funds against the
merits of specific capital undertakings. Government has its problems too, of designing securities
to sell in a market supersaturated
with credit demands.

"Some
brakes
and

taking

are

risk

This

soft

good look

ernment's

programs

al-

with

spots

are

in some areas of businoted earlier in this 'Let-

still

are

forward

evi-

momentum

the economy than of contraction,
The rising drift of prices gives

discount
in August

af a ,.c.or3"e^ evaluation off the

risks of inflation.

shortage
not

•

clear from the record that

money

product,

absolute shortage, but

any

expanded
demand.
Corporations are raising more money by
bond offerings than they did in
than

1955—or
Banks

other year.

any

lending

are

conclude

S. Federal

expected

are

reach

national income which

"6340

around

#•

flscal

>56

preSident

,*n

iln!ll,v

-.na

2Q<y

rome

tion,

lor

to finance increased working

year,

capital
requirements,
and
enlarged plant-equipment" modern-

ization,

"Letter"

the

experiencing

and

years

tial losses in the
"Thus

substan-

process.

congestion of bank loan

became

offerings,

congestion

overtaxing

the

BAY

interest

enthusiasm .in

bullish

market,

partly

cooled

the

H.
El
~

the

availability of money to increase
dividends, but most fundamentally by compelling revisjons

for

business

the

faster than

Federal

Calif.—Charles F.

affiliated

now

L.
Jamieson
Co.,
Cajon Boulevard.

with

Inc.,

2144

Congressional Generosity Prevents
Tax

Relief

trying to

do is skim the froth off the boom
and

hold

limits

credit expansion

with

consistent

-.r

Jnrpninitnt*>

tion

stable

S^y"f
desiring to piecipitate
available

Federal

loan

Reserve

has

'rnnSarf
contrac—

The

funds.

their right to
their own money as they
please. They-do have the right and
responsibility to discourage bor¬
rowings that rest in the final an¬
alysis on extensions of credit by
the Federal

annrom'iated

™ontZ
the

n0ne
•
in

much

session

just

cr.

much

President

Come

From

Every Side
dollars

"Demands for borrowed

from every side—even irom

abroad to the extent that borrow-

find

can

access

the

what

nerformance

Congressional

"It

rent

savings

the

nation's

spending

ill

are

omen

slightly

creased
credit.
want

ing

this

has

area

has

result

slackof

in-

business requirements for
While most
people who

buy
u

been

u-4.

hard hit.

■

Rates

Calif.

prominent

& Olds.,

combine

will

that

have

had

role

investment banking

accumulate

over

that

—

Harold

Dempsey-Tegeler Adds
WHITTIER,

Calif.—Douglas

and

of 4Vz%-5%
same

time ,

sures

and

to 5%-5i/2%.
reflecting
ret ecting

them

for

the
the

funds,

range

At the
ores
pres

banks

savings and loan associations

ship

the

this

not

Stock

Ex¬

Form First Sees. Co.
curities Company has been formed
with offices

Building to engage in the invest¬

ally

EaSt philadelPhia street-

known

The
Coe

was

tinue

founded

of
in

Mackall

1938

investment

the

ment

organizations,

partnership

This

announcement

is neither

securities.

offer

sell

in the Hospital Trust

business.

Partners

Cunningham

comfort

for

offer to buy

any

only by the Prospectus.

200,000 Shares

Gold Seal Dairy
CLASS

Products Corp.
STOCK

(10c Par Value)

Copies of the Prospectus
in ivhich the

may

he obtained from the undersigned only in states

undersigned is qualified to act

und in which the Prospectus may

as a

dealer in securities

iarger

Lightening

taxation

the

striking

savings
flow.
crushing burden

could

refresh

the

All States Securities Dealers, Inc.

hard_

The

legally be distributed.

UNDERWRITER

matter

Wall

Street

•

1 New

York 5, N. Y.

Telephone: BOwling Green 9-2520
October

18.

1956

are

Mrs.

Adin

were

for¬

merly with Barrett Herrick & Co.

business

road

individual

taxpayers.

and

Both

Burlinghame.

con¬

solicitation of

nor a

The offering is made

Price $5.00 Per

the

the shorta-e of capital in relation
to demands- To £row, the country
of

Ex¬

PROVIDENCE, R. I.—First Se¬

spending,

relief. This is not merely

Stock

American

needs

Coe

change, with a direct wire to their
correspondent, Clark,
Dodge &
Company in New York.

Washing¬
activities.

fact in the United States today is

from

delphia-Baltimore

control

tended

years,

many

eventually

pressed

move

Mackall

membership in
the New
Exchange, the Phila¬

Stock

having panieipated in the financing of Wash¬
ington's outstanding utility and
for

Spending or Tax Cuts

charitable

bution of the securities of nation¬

Milke is now with J. D. Creger &

appro¬

Congressional

Federal

"Clearly

change and an associate member¬

•

two
long

.firm

The

holds

organizations
have
been
well known and highly regarded

rising above expect-

conventional mortgage loans have
to

life

organized the Blood

Both

(Special to The Financial Chronicle)

WHITTIER,

otherwise could finance tax rate

ened

building boom,
of borrowed

his

activities and

Charles

Redmond,

merger

firms

expenditures once more, per-

loosening

cur-

flow

The

spree.' "

funds available, speculative build-

into

money

continues

the

build houses find

much

The

1957.

C. Ailes of Goodwyn

the

to the tax cuts everybody wants
and the political platforms promise. The plain truth is that expansion in Federal spending programs,
appealing as
individual
programs may seem in themselves,
is
siphoning
off
the
natural
growth of the revenues which

claimed

although

Jan.

mitting unused spending authority
to

The

lion's

arrangement will be¬

new

effective

Woodward

ton

With J. D. Creger

Senator

requested.

com-

cheap,. market.

paratively

our

15th

733

NEW ISSUE

scrib°d

Demands

Building,

The late Wilfred L.

Insurance Co.

Goodwyn, Jr., who died June 8,
1956, was a co-founder of the firm.
In addition to serving on various
boards
of
directors, he devoted

the

endei

in the P3St 10 yearS Sranted
mnnii
nf
urimt
+Vi£»

total

priations

Reserve Banks.

ers

gr®as

The
come

and

Adams has been added t0 the sta££
o£ Dempsey-Tegeler & Co., 113

^(11.J ?,

den/people

ity to
spend

come

author-

de-

within

rni.__

a/»av\awtt

credit

the

n,'irif/th3T"nihnthe^ertoJi

before. What

ever

Woodward

Street.

local

Compounding

Reserve

will

firm

offices

with

Coe

York

(Special to The Financial Chronicle)

ness

including the Union Trust Com¬
pany and the United Services Life

Mackall & Coe and Edson B. Olds,

Co., 124 North Bright Avenue,

profits and commodity prices "

areXtels^

and brokerage business,
negotiated the purchase
of local companies,

industrial firms and in the distri¬

outlook

the

John

consolidated

The

Wil-

Research Foundation.

Marshall

stock

from demand or adding to supply,
partly by raising questions as to

—

all

number

(Special to the financial chronicle)

subtracting

and

operate under the name of Mack¬

SAN DIEGO

policy

f'rms

Goodwyn

banking

Coe

firm

the

partners
will
be
William
W.
Mackall, William C. Coe, Thomas
L.
Anglin, Robert L. Soper of

offered."

"credit

turn

SHORE,

writing

agreement
consolidate

Joins H. L. Jamieson

power of the market, particularly for corporate issues, and
leading
to
sharp
advances
in

investment

Mackall

that

Olds

Edson

reached

been

the

are just

and

announced

had

Hone has become connected with
Edwards & Hanly, 67 West Main
Street.
He was formerly with
Waddell & Reed, Inc.

buying

rates

have

JO ns t-uwaras oc rianiy
^

Mackall

established

Building, was founded in 1933. In
addition to their regular under¬

WASHINGTON, D. C.—William
W.

was

liqm W. Mackall in 1930.
Goodwyn & Olds, presently lo¬
cated in the American
Security

Goodwyn Olds Merging

Olds.
J?

which

Mackall & Goe and

toaay.
;n

Exchange Bank,

Thomas, President, Monsanto Chemical Company,
George W. Davis, Davis, Skaggs & Co., San Francisco, Presi¬
of the Investment Bankers Association, were the principal
speakers.
:

reductions is necessary just as
they can Properly be

Corn

Dr. Charles A.

sooa ,as

These eloquent words

Chemical

dent

•

the

and

lonS-term dynamic growth of the

out.
lending in

Astoria Hotel.

lhe Present tax take ®f near-

points

their

checked

chosen

was

Vice-President, The First Boston Corpora- '
Vice-Chairman, and William S. Renchard,

Secretary-Treasurer. The election took place on Wednesday, at
the group's Annual Dinner in the Grand Ballroom of the Waldorf-

?coa?m? +whlc*L is so necessary
future. There must be the
JT1+fns Pr P^ovl^lng' more and
better jobs not only for those who
ai'e working today but also for the
mldlons of young people who will
come to working age in future
Vears- The stimulus of further tax

these

William S. Renchard

Francis A. Cannon

Elsenhower

„.

Executive Vice-President

for

iqcs.
.

Steel..

Francis A. Cannon,

billion

Walter

current-

runnin£r
"f^Vngaroun
Th/t
oi?t
^ p°esen?ing his budIV
? ouaget

It is another thing to carry
programs
on
full
steam
when labor is scarce and savings
inadequate to the demands."
To
accommodate
the
dynamically expanding business borrowing area of credit demand this

tivity.

money

spending

^ one-fourth of our national income ls a serious obstacle to the

evidence that the Federal Reserve

authorities,
in
raising
rates in April and again

capitalist

when millions of people
were
unemployed • a n d
savings
funds were
stagnating in inac-

years ago

bond

encourage

home-building on a cheap money
shoestring.
It was one thing to
stimulate borrowing to build 20

demands

there

"in

Federal

...—1
works

the Federal GovGot-

ex iiuiem s px ugi <tins w encourage

ness, as

ter,'

as-

serts "it is time that someone took
serts, "it is time that someone took

apparent

dences

"Letter"

sell U. S. securities, cutting their
holdings to the lowest level in 13

dealing

while

But

Na-

the
thc

infla¬

$69.8 billion in fisc&l 57 ahd state
an'7
1 government general
TevenileS should take at least $30
u-S°n P?1'?'"
e roughly $100
oul 01
£a aA 11 £{.31?e. 0Ut °£ a

other directions, and continued tp

too
a

contraction.

ways

problems

market

Bank's

hard
general

hold

business

boom.

City

perpetual

credit

the

precipitate

may

the

upon

mmfgage
T/

the mortgage

tional

r;V

Reflecting

Df
of

"banks

that

fear

wel¬

relief

"Letter"

revenues

competitively raising the. rates
they offer the individual saver."

the

that,

are

"the shortage of

borrowed

the

only

Take Views

Growth

enlarge private savings flow and individual incentive.
'

the

He succeeds E. Jansen

Re-Echoing Eisenhower's Tax-

by perpetual inflation, decreasing the tax load to

taxation

toward

where

Chairman of Walter H. Steel, part¬

Co., investment bankers.
Hunt, partner of White, Weld & Co.

is to

big government,

taxation

October "Letter"

credit.

Group of the Investment Bankers Association

tion."

advocates, as the
big government and the welfare state solution

alternative to
to

from

money

Banks'

return

fare

monetary

Reserve

practical alternative

drift

to en¬

programs

shoestring" Homebuilding; and com¬
authorities for not attempting to contract
available loan funds while discouraging borrowing resting upon
"cheap

courage

of Drexel

ner

"The

Group of IBA Elects Officers

New York

has announced the election

inflation.

....

First National City

of these

The Commercial and Financial Chronicle

(1652)

said

Wood, Walker & Co., New York City
Members New York Stock Exchange

Corner at 1

has

enjoyed

tion

since

6umed

of loca-

permanence

the

States

United

reached

independence and

economic

as-

ma-

days of almost free
higher education it is unfortunate
that greater effort is not being
made to make this basic profession more attractive to young men

there

endeavor

been

has

constant

but

-JM

the

mercial

that

well.
Once

the

Hubert

nearly ail

established investment

banking houses

security
of
principal
and
regular
income,
Hence the public was encouraged
bonds or preferred stocks,
general public particiin stock speculation were

Periods of

pation

and

rare

were

instances

most

the result of inflation due to wars.

While

the

banker

might

member of

one or more

his

were

efforts

exchanges

devoted

mak-

The Federal income tax has had
much

with

investor's

habits

expansion of the
investors

rate

clebt

great

change
has

had

shun

because

tax

the

Corpo-

economy.

have

securities

very

the

The

result

Inquiries

has

"individual

been

investors

that

for

except

Btocks and it has been many years
since
investment
bankers
have
the

used

these

In the

the

phrase "We recommend

bonds

for

rise

rate form

investment."

vein

same

the

corpo-

for investment banking

'.-houses and

the

emphasis

currently placed
tunities

use

that

the opporspeculation in stocks,

for

upon

The older form of endeavor was
fun and it was profitable. From

his

clients

•

prepared
before

call

for

the type of

underwrote
its

corporations

among

the banker had
he

it,

the

sold

sions, listed it

funds,

security,

it,

Blue

qualified

Sky commis-

upon

Stock

have

young

corner

apt

recall

statue

The

success

banwavs

the

location

100

but

this- statue,

and commercial life' of the cfty.
In'the diary of Peter Hone is ai
description
1835

Ex-

when

Wall

the

Street

river

Coenties

Street

with

the

from

area

Broad

—

Great- Fire

"whole

Slip,

the

exception

Broad Street and the Wall
front between William and
and the blocks bounded by
Street, Pearl Street, the

Street
Broad
Broad

South
side of Coenties Slip and South
Street, are now a mass of smoking
ruins."
Only 10 years later we find in.
the diaries of-George Templeton
Strong, an account of anothergeneral conflagration that spread
through the southern part of the
Island
reaching / both
sides
of

Today I
underwriting of
a
risky and at

"cut

ing,

■

300 buildings,

senior

the

issues

proposition.
offered

time

same

and

dried"

Debt securities when

via

only

can

respon-

for the market.

competitive

bought

bidding
the

nar-

rowest

Broadway

destroying

and

During

this
in

occurred

fire

Broad

about

explosion

Street

-result-

Mr.

Strong describes, in.
having "torn to pieces
half
adozen buildings, shattered half the
as

windows

in"

the

Exchange,

margin of profit and can
only be sold in volume to a limited

plate

number

window frames in Atwater's

known

The

of
to

buyers

who

eyes

might

There
man
a

seems

was

the

accept
offered

figure

and

men

it.

young

was

whose

with

20-years

perhaps it

busi-

case

glad

stipend
for

work

ability.

term

learn

modest

senior

the
I

partners

often

Redmond

the
of

first
no

of endeavor that could

now

Co.

since

Federal

withe-the1*

driveway.

years

field

"Pine

Sub "Treasury"

historical

years

and

and nrobablv

Even

was

the

allow

access

still

old

the

left

Street

The

right

between
S. Assav
a

stable'

exists

Assay

Office

next door has been remodeled for
the
Seamen's Bank for

Savings,
but the building where Washington first took the oath of office
remains unchanged (except for
grade).
Of
exact

located

the

plot which my forebear

was

course

undergone little._

1900.

Hall

Office to
on

be equally

has

that

way

and

States
houses

change in 100
of

were

other

Interesting and rewarding.

United

and

none

refer

apprenticeship

think

catastrophes-

marked

Washington escaped in-

museum.

firm

was.

end

can

place

Street."

these

now

the

then

well-known

My devotion to the investment
banking field is not going to stop
for

spot

jury..-At various-times this.,building has been used by the City
Government,.as Federal Halloas

men

firm and given

own

and

whose

the

younger

when

opportunity to

ness.

n*/

both

even

statue

proud to be accepted

student of such

the

banking

the

Windows

Griswoldls._buildings and

the

once

attracted

time

the

have dimmed

the

be
a

at the head of Wall
was

the investment

profession
the

well

are

everyone.

prestige that

cachet of

who

glass

never

could

from

Broadway to Proctor's Res-

The present building oc-

was

from

ride

the

and
own

Morgan & Co.
had
their

who

located in Pine Street.

Pine,

about

Pine

buildings in Wall Street, the
of the underwriting houses

was

Iselins

Kuhn,

and

Loeb
the

move

Here

Co.

corner

William, where they

"Drexel."

were

was

Speyer & Co. had built the marble

Legally, I suppose, it
the. Drexel building but in

1906

every
there.'
;

knew

one

who

lived

remain

building

that

Redmond

Further

along
some
radical
have taken place.
The

individual

consolidated
Wall Street

Mills
of

Building and
to

holdings
produce

having entrances

some

new

the

occupies

original.

the Mills Building was
at

were

the

skyscraper and

Building

the

one or

site

respects

novelty

three streets,

varying levels, and housing a
restaurant? Also
in
the

garret

garret was
in

obscure

His

thfe office of

securities.

the

collection

was

butterflies

him

One
one

and

fi^om

was

to visit

old

Custom

the

every

acquisition

House

the

headquarters of the National City

now a

name;
into

moved

offices

occupied

building at the

years.

corner

church.

33
of

Pine
N.

a red

brick

of Pine and
One of the

most

interesting changes was the
purchase of the irregularly shaped
building next to Hallgarten & Co.
by John Arata, who for years had
operated the fruit stand under the

grand stair

(Life)
My
of

of the Equitable

earliest recollection
standing in the doorway

very

was

case

Building.

the

building then occupied by

Kidderv Peabody
during
watch

change which nearly

the

and

William,

all

always

rainy day.

remembers

the

moths

Street

their

had

building

own

Harris & Co.

dealer

defunct

diversion

their

for

bears

Co.

Wall

George

man

one

Street to Pine Street and from

name

usual
trip to the office
the

wheel.

were

the

that

Anaconda

ferris

shaft

an open

operated

Aside

elite

cause

trJ,.

great

Bankers

rope

the

interesting to have

than its-tribute to Washing-

the

face

building had

elevator

the

front of the old sub-treasury^
building commemorates the deeds
and.

Schermerhorn
up to the

gap

while

taurant.

—

Astor

banking

parts of the world.

certain-i

respect

General

sibility

the

building

the

its

into

Moving from 52 to 55 was,
an improvement.
The

course,

gilt,

Washington which proudly stands

assumed

upon

door

These two buildowned by different
families
were
easily
associated
because by a series of sky-lighted

experienced,

and

cut

door

ings,

and is destined to spend his active
days in the Financial District is

change and then
look

being done as
hurriedly rented

and

the
worn

Trust Company.

One who is born in New York

bounded

should note

Building

and

was

but

undertaken,

was

called,

business

usual,

marks some of the most important
few" events affecting both the financial-.

received today from

are

week

job
were

quarters.

the

first entered the area known
as the Old Slip Precinct for the
purpose
of learning the investment banking business, I would
meet with them beside the statue
of George Washington and point
out from memory some of the important changes that have taken
place in a period they are too

in'ton,

advantages

ttocks.

rush

tenants

50th

valuable landmarks.

ing his clients creditors.
es

Chronicle

Financial

observance

was

the work of excavating next door*,

to emphasize

was

importance

to buy

started

had

Bank.

nar¬

building itself
sadly yellowed marble and

United Bank

side

North

anniversary of Sept. 4, 1906 when Building filled the

Atwater

policy

the

charivari

annual outing of the Bond
Club, last June, when I promised
two representatives of the Com-

banking

business

whole

this

invest-

ment

the

back

had

The

changes

The

occupied
by the First National Bank, at the
Corner, whose building started to
visual crack one Saturday noon due to

tion.

23.

the

conducting

irregular

number

bore

was

held

office

present

above

transom

and the Bankers Trust Co.

experienced

JZH changes £|n the financial district,

manner

and

has no competi-

man

Getting

entrance

odd

flight 0f steps as well as the first
home
of
Merrill, Lynch & Co.

the rising gen-

the

to^ay

M'M investment

aspects

and

the

Here

Morgan

doorway much

corner

can

corner

Streets.

earlier

The

house

rising from

the

its

than

ber 7 wjn be remembered because

older members feel

competition from

eratiorR

change, a
change not
only of physical

the

Broad

rower

a small lot
impression of a huge
chimney for some giant smelter.
it was one of the first plots in the
city to be sold on a square foot
basjs of quotation and I recall the
priCe was reported at $300. Num-

who are willing to start as beginners. In nearly every line of

u r

and
elder

cross

gave

i t y
but
within itself
t

Wall
the

Thursday, October 18, 1956

former

greatest change that I

brick

ted

these

The

New York Trust
has the dog-leg

point.out today is at the

JcaTlld tecaus^tThefghTof

have been fun."
The New York financial district

Wall Street and No. 7

cupied by the
Company still
corridor.,,

forth.

Some aspects of the Street as the author first knew it and how
Some
in spite of evidence of change he still says "the first 50 years
in
the

occupy

would prove to

HUBERT F. ATYVATER

but hoped that it
be one of the two
corners
opposite Trinity Church.
The Irving Trust Co. building now
occupies
the
space
of
several
buildings including the Chimney

The Wall Street That Was

Co.

group

the

businessmen

form in line for the Sound
Parade.

1896

terrible ^ downpour

Money

Also the former hQme of

Equitable Life Assurance So¬

ciety

was a

delight to

me.

Cover-

Volume

184

Number

5578

The Commercial and Financial Chronicle

ing almost all of the block, its
great starway, marble waincoating and heroic statue of its presi¬
dent

Hotel Industry to r
Issue New Credit Card

enough
to
impress
Add to this the the res¬

was

anyone.
taurants

(there

barber

the

Club

tainment

The

have

and

aspects

have

the

into

credit

card

the

of lodging and
public."
y v;. y

Outside promoters, according to

bank'

carry

"influx
'.'outside

plans to
the hotel

the prices

food

the

Association, have been

press¬

ing hotels to recognize their
cards

and

mission

Hotel
as

then

leaders

both

tionary.

activities of the finan¬

many

ing

the

enlargements
of
the Stock Exchange, the building
of a home for the Curb, now the
American Stock Exchange, a few
failures, many consolidations of
security dealers and an influx of

humanity1-necessary

the

announced

schemes that would result in forc¬

consolidations,

pay

them

new

com¬

the guest's

have

branded

high-handed

:• and

bill. /
this L

infla¬

pansion

vast

ex¬

program

its

own

2Vz

year-old credit card system.
Universal Travelcard is the

new

chosen for the single credit
which is honored by mem¬

name

card,

Connecticut, thus giving the hotel
industry itself complete control of
the

Universal

new

Under

the

Travelcard

bers of the American Hotel Asso¬

ciation

Amercian

one

the

across

card

new

features

country.

combines

years/,

tiated

for

the

credit

during the last two
and which were differen¬
as
Company Travelcards,

Personal Travelcards and
ards.

This

all

of the three hotel

issued

cards

'.The

Check-

card will be good

new

112-month

period

the. recipient $5.

and

cost

•

charge

the

American

Hotel

the
for

tive

Vice-President,

The

ing

;

Bucyrus-Erie Co. is offer-

its

stockholders

common

record Oct.

Manager, Mayflower Hotel, Wash¬

America,

Hawaii,

Bermuda, Puerto
Virgin Islands. >
Hotel

ard
non,

are

dealers

the
...

■

and

Hotels

the

common

$42

per

stock

heading

Credit

Company, Mount Ver¬

Ohio, Chairman of the Board;

ANGELES, Calif.—Andrew

Johns,

Robert
ated

with

William
Meder

FIF

poration.

ATLANTIC

basis

RAILROAD

share for each five shares

one new

then held.

heads
will

The First Boston Corp.
underwriting group that

purchase

Net
the

the

sale

will

primarily

construction

the

cost

000,000.

the

stock

company

the

plant

area

from

common

finance

new

expiration
1956.

proceeds

new

used

unsubscribed

any

the

offer Oct. 31,

approximately

Shipments

$12,-

the

com¬

drilling machines and
tools, which have increased sub¬
stantially over the last five years,

pany

will

plant.
uled

Indiana-Illinois

concentrated

the

The American Museum of Safety

new

The plant, which is sched¬

for

completion

the

latter

of 1957 or early 1958, to¬
gether with the release of needed

part

space and
equipment in existing
plants, is expected to^increase the
company's
overall 1 productive
capacity by 18% to 20%.

Bucyrus-Erie, the leading
ducer

power

cavators in

ex¬

the United States and

leading manufacturer of drill¬
ing, machines and tools, formed
a

in 1955

wholly- owned Canadian
subsidiary which is building a
a

plant at Guelph, Ontario,
Canada,
expected to be in operation early
in

1957.

The

company

1929," owned

50%

Huston-Bucyrus,
operates

30,

six

1956,

has, since
interest

Limited, which
Lincoln, Eng.

plant in

For the

Memorial Medal

pro¬

and

cranes

flu P.I I.I Iarriman

months ended

total

income

June

amounted

&cwt//?d//ry/iCj.

/rind.awardedrtwwtiady
dy, dde £j/nr>rtcaM/<yf/a,4ew//v/^c/afl/y/oA/tMa/a/e/wdrec/'/'^ad
^vrdAe '{danAerva/dn/'ddema

Cold Medal
AWARDED TO

Atlantic Coast Line Railroad Company

$45,980,000 and net income to
$4,116,000, equal to $2.65 per com¬
share

mon

compared

with

total

income of $32,900,000 and net in¬
of

come

for

the

$2,694,00,
same

the full

vear

$1.73

share,

in RECOGNITION OF ITS OUTSTANDING SAFETY RECORD
FOR THE YEAR 1955 AMONG

Class A Railroads

period of 1955. For
1955 total income was

$73,005,000 and net income $6,517,000, equal to $4.19 per share.

Garl Hess Joins
E. F. Hutfon & Co.
Carl M.

ciated
of

Hess

with

has

the

become

asso¬

investment

Hutton

firm

Company, 61
Broadway, New York City, mem¬
bers of the

change,
ment

New

York

Stock

Ex¬

Manager of the invest¬

research

department, it was
Formerly
Assistant
Vice-President in the petroleum

This Cerlificote, together with the
to

the Atlantic Coast line Railrood

Gold Medol it

represents, was

presented

Company in New York, September 19, 1956,

announced.

department
hattan Bank

financial

The

and

analyst

Chase

Man¬

prior thereto
with

Company in Houston
York, Mr. Hess has had

Shell
and

Oil

New

wide trad¬

ing and experience in the invest¬
field.

ment

Three With Securities, Inc..
(Special to The Financial Chronicle)

DENVER, Colo.—Anna
dings,

Evelyn

Claude O.
staff

Crane

Gid-

Bakke

and

have

joined the

Union

Securities, Inc., Farmer
Building.

Recipient of the most coveted award in railroading, Coast
Line takes justifiable pride in its long safety record
and

resolutely

honor bestows.

assumes

the

added

responsibility

this

are

Kane
now

and

affili¬

Management Cor¬
•

(par $5)

the

)

(Special to The Financial Chroniclk)

LOS

for

shares of

Three With FIF

the
Corpora¬
Arthur J. Packard, Pack¬
Hotel

Vice-President, Western Ho¬

tels, Inc., Seattle, Washington.

Bahamas,

Rico
.

son,

16, 1956, rights to sub311,040 additional,

scribe

Ho¬

Corporation, Chicago; C. J.
Mack, Vice-President and General

First Boston

Group
Underwrites BucyrusErie Stock Offering

Hilton

tels

ington, D. C.; and Edward E. Carl¬

tion

Credit Corporation of Greenwich,

to
members
of
Hotel
Association

by Hertz, Avis, and National
car
rental systems and
theatres
presenting Cinerama, in addition
to leading hotels throughout North

American

majority stock

non-profit Universal

system, there will be

Seymour Weiss,
President
and
Managing Director of the Roose¬
velt Hotel, New Orleans, Presi¬
dent; Robert P. Williford, Execu¬

ored

has purchased

the

Travelcard.

participation in the system. The
Universal Travelcard also is hon¬

I To make this possible, the hotel
industry's/' non-profit foundation

To combat this the hotel /interest

industry is launching

cial world.

field

changed

come

Oct.

fight

the

enter¬

walls.

certainly

them

Lawyers

day's

its

physical

with

the

library

find

within

District
and

shop,

could

several)

were

law

and

visitor

The American Hotel Association

(1653)

The Commercial and, Financial Chronicle

(1654)

1946—

Week

—

1948___

organized, in 1849, there had been no general legislative act under
which

units

new

companies could be incorporated; generally,

insurance

new

set up solely for the policyholders. Pre¬
miums to the amount fo 8100,000 were ready to go on the books
when the charter was issued.
This did not represent that much

cash,

company

era

notes

In 1864

legislature changed the company from its

act of the

mutual status to

joint stock company with a paid up capital

$100,000.

in the State of Illi¬
of the hazardous types of building construction

Glens Falls discontinued writing business
nois in 1870 because

the
great Chicago fire occurred in 1871, a conflagration that put 53
companies entirely out of business. From its original capital of
$100,000 the company has grown to one with capital funds of $50,in

So the company suffered practically no loss when

Chicago.

176,000 (consolidated).
The

$3.81

$58.27

$110.07

0.03

4.44

52.58

101.31

51%

38%

4.77

2.50

1.76

5.51

55.92

106.78

40%

7.22

2.59

2.21

7.60

64.24

118.02

471/4

6.97

3.16

2.58

7.55

72.02

130.97

56%

1.71

3.41

0.67

4.45

74.85

135.02

59 y2

51%
53y4

his

and sustained rate of eco¬
growth is necessary to the
welfare, if not the survival, of
America and the free world."

high

nomic

1955

the

tary

6.12

80.20

147.45

2.36

6.16

83.25

154.00

63%

4.35

2.46

5.15

101.G6

174.06

62 y4

0.87

1.03

4.08

3.26

3.66

4.44

4.67

0.94

4.60

106.88

185.80

82%

Consists

unearned

statutory

premium

the

Iii this tabulation

equities

loss, plus

Consists

unearned

equity in

change

policyholder's

surplus

premium

the

and

year

sharp increase in 1954 over 1953 in both
invested assets reflects the strong market
back to 1866 with

qualiiied to do business in all states and in Canada.
There
are
approximately 8,400 agents. It heads a fleet consisting of
Glens Falls Indemnity Company and Commerce Insurance Com¬
it is

might mean, and that we shall see
industry, if need be, take the ini¬
out leaving

idends $2.6 millions.

fords
of

return

about

income

investment

2.79%.

dividend is

The

1955.

The

sions

are

the

and believes in the phi¬
losophy of "jobs mean sales." In
economy

1929

Consolidated

31, 1955

$7.440 236

Bonds

Government

State

9,108,578

breakdown

the

50,176,026

$146,908,432

company's

principal

into

assets

cate¬

5.1%.
Government

Other

20.4

Investments

Other

Market

_i—

—

1-6

9,600

Motors;

Amerada

11,657

Business

Gulf

Machines;

Petroleum,

Oil;- 8,717
5,300

6,000

Inland

Kennecott

Pont;

18,900

of 1955

General

Gas.

The

International

10,712

Copper;

2,505

Scott Paper;

ended

average

Dec.

31,

combined loss and expense ratio for the decade

1955,

margin of 4.6%.

Net

Invested

assets

giving

premium writings

creased from $71.99 per

54%.

95.4%,

was

underwriting

in the

same

profit

period

in¬

share of the company's stock to $110.95, oi

per

went from

$110.07

$185.80,

gain of 69%.

that

BANK

COMPARISON

of INDIA, LIMITED

13 N. Y.

City

Bankers

the

Government

(2)

End

C. 2.

(London)

Brancht

Branches In India,

Laird, Bissell & Meeds
Members New

York Stock

Members American
120 BROADWAY,

Stock

NEW

Exchange
Exchange

YORK

Telephone: BArclay 7-3500
Bell Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading Dept.)

Specialists

Bank

Stocks

Burma, Aden. Kenya,

Tanganyika,
Uganda. Zanzibar, and Somaliland

out

upon

will

draw

natural
our

re¬

industrial

like it
no

£4,562,500

Paid-Up

£2,851,562

Capital
Capital

Reserve
Bank

Fund

major

second

circum¬

and

every

description

exchange

business.

Trusteeships and Executorships
also

undertaken

not.

1929

there

was

posits; there was no social se¬
curity program.
FHA mortgage
•insurance was not even conceived.
general maximumminimum-wage law.

was

and

crop

insurance and farm

support legislation had been

advocated

from

time

so-called
radical
thinkers, but
scarcely anybody in 1929 had the
faintest idea such laws would
enacted.

ever

Most

technological

progress

being

are

work

against

produce

depres¬

test

yet.

has

the

economic

But

into

how ef¬

sure

stabilizers

there

will

been

anyone

be,
real

considering

outlook

account

tail

take

must

for the

simple

levels

market

Standard

Gold

let me
circumstance.

1929

the

mobilized

fight

our

debt

present

changed philosophy

was

the

about $6.9

are

The entire Federal

budget

only about $3 billion.

debt

and

the cost of

condition
the na¬

government you find a

against serious recession.
this

debt

Federal

only $16.9 billion. Today it is $273
billion. Interest charges alone on

the

become

to a
It is finan¬

refer

cial.

billion.

Under

Longer

Now

(4)
fourth

in 1929 was

may

ever

Restrains

reason

that they are evidences of
extent to
which the nation

have

known.

business fluc¬

knows for

these

because

them

re¬

the nation's economy.

one

fective

shared to an increasing

making it imperative that

operate at a high
ple fully expect every means at level. The U. S. Government de¬
hand to be used in the mainte¬ rives 82%
of its revenues from
nance of reasonably full employ¬
taxes on corporate and personal
ment, production, and purchasing incomes. Any decline in income
power.
Any administration un¬ must, of necessity, be reflected in
willing to act in accordance there¬ an even proportionately greater
with would receive unfavorable decline in Federal revenues under

of government the American peo¬

tion's

the

progressive rates of the pres¬

ent

tax structure.

elec¬

day.
is

much

strongly

(3)

third

circumstance

worthy of mention
the

threat

grows

very

out

Communism—and

undoubtedly bears heavily upon
the minds of those who make de¬
cisions in industry today.* I refer
to the generally known—but lit¬
tle

publicized—realization

among

American depression of the mag¬
nitude of the one of the 'thirties

ist-minded individuals held to the

might be

Communists.

that the Federal Govern¬
to do
1946

—take any steps necessary "to pro¬
mote maximum employment, pro¬

duction, and purchasing power."
Yet
all
of
these
leigslative
changes (and others of a similar

economy

depression would

drasti¬

organized now than in 1929. Union cally reduce government receipts
membership exceeds 17,000,000 to¬ that Uncle Sam would be forced
day compared with only 3,600,000 into greater and greater deficits,
in 1929.
releasing
more
and
Union leadership is now inevitable
far superior to what it was then. more inflationary forces.
Here is another impelling reason
Other groups such as farmers and
veterans are well organized too— why we must stay economically
are aggressive and
articulate and strong and prosperous. It is also
aware of the effectiveness of po¬
the principal explanation of why
litical action.
the dollar cannot become dearer,
but must remain as it is—a con¬
Business Awareness of
dition made easier by the fact that
Depression-Consequence
the gold standard no longer re¬

people in 1929
regarded unemployment as a nor¬
mal sort of social problem to be
handled locally; only a few social¬

what Congress authorized in

£3,104,687

conducts

banking

commonly

will

which

Labor

Federal insurance of bank de¬

"here

compared with 50.4% in 1929—
testimony to the fact that
the
benefits of America's great

built-in economic sta¬

which

tuations

tion

Against

ment should be empowered

Protectorate.

Authorized

The

left

personal

country's

the

salary

73.3% of
income,

mute

theory

Bishopsgate,

13, St. James's Square, S. W. 1.
Pakistan, Ceylon,

Request

United

differentiating 1956 from
1929 is to be found in our philos¬
ophy of government. The role of
government in our economic life
has
changed markedly
in
this
generation — whether you and I

Colony and Uganda

Office:

London,
West

Circular

Kenya
Head

Bank Stocks

our

Legislative Bulwark
Depression

price

NATIONAL

In 1955 wage and

support at the ballot box

forces.

upon

and

Federal
QUARTER

cannot

armed

li^aLir

THIRD

the

stance

Steel;

11,064 Standard Oil of New Jersey; 9,600 Union Carbide; 22,000
United

that

probably will have to
cost¬
ing close to $40 billion, maybe
more, annually for a long time.
None of us takes delight in the
prospect, but it is a cold circum¬
defense program

capacity.
„

Some of the larger common stock holdings at the end
were:

fact

unsavory

extreme downward

sources

11.41

Assets

Adjustment

bilizers

sions

heavily

1.3

They have been
ferred to

the
Other

situation

It will keep a minimum
9,000,000 ,men and women en¬
gaged, directly or indirectly, in
defense alone, counting those in

6.8

Stocks.—

Common Stocks

All

international

31.0

Bonds

Preferred

total

account.

25.6

Bonds

strengthened

been

going to middle and
groups,
bringing a more
balance in our economic

extent by
the masses of people who in turn
import) are in full force and ef¬
have improved their living stand¬
fect right now—and did not exist
ards and sustained the highest re¬
in 1929.

presently tense—and there are no
apparent signs of easing.
*
When we appraise the economic
future, we must not overlook the

stance

Cash
S.

forces

armed

our

three

maintain

gories follows:
U.

1929.

States very

——

$140,908,832

2,947,945
981,125

—

Surplus

1,015,612

Miscellaneous Assets—

694,377

$3,750,000
28,079,000
Voluntary Res.— 18,347,000
Capital

29,575,896
——

3,204,336

—

Liabilities

Miscellaneous

9.899,491

Stocks—

Estate———:

State

Funds Held in Reins. Treat's

6,288,722

Stocks

Preferred
Common

35,673,934

Licensed

not

York

in New

38,465,211.

$32,225,689

Prem._*

Taxes & Expenses

Reinsurance

Bonds

Other

The

Unearned

Reserve—

Reserves.

36,94o,370

Municipal

Bonds

Real

Loss

for

Res.

8,169,316

Receivable.-—

Canada,

hydrogen bombs was not even
imagined, let alone latently feared

LIABILITIES—

ASSETS—

Cash
Premium

our

proportionately greater in¬

come

system.

million, and we are
spending at the rate of almost $40
billion annually for national se¬
curity.

Sheet

Balance

is
internal

The change

disbursements constituted

about

December

of "sales mean

because

have

markets

stable

Today

$12,500,000.

about

philophy
prevailed.

significant,

Shaped by Wholesome Changes

In the same

jobs"

carried at the end of 1955 at over $7,200,000. The parent
at that date held 3,700 shares of the Indemnity company
and 39,900 shares of Commerce, while the latter had a 2,700 share
interest in the Indemnity company.

consumer

lower

page

1929, realizes the role of
- function
in our

part in

just come from the company that a spe¬
meeting of the stockholders has been called for Nov. 16 to
act on a proposal to consolidate all insurance operations of the
fleet.
The proposal calls for the merger of Glens Falls Indem¬
nity and Commerce Insurance into Glens Falls Insurance Com¬
pany and the liquidation of Glens Falls Corporation.
Approval of
the plan will bring about the issuance of 650,000 shares of new
stock to be distributed among the shareholders, share-for-share
in exchange for their beneficial interest in the Glens Falls Cor¬
poration. The directors have recommended approval of the plan.

company

178%.

its counter¬

agement today, unlike

Announcement has

surance,

increased

sit by

prosperity. Likewise, top man¬

cial

from

or that we
awaiting the return

inevitable;

are

should

liquidating value.

Continued

theory that depres¬

not hold to the

only about 43%
selling at about
earnings, and materially below the $106.88

for

15.6 times 1955 total net

does

today

management

Wise

Selling at present at about 71%, the present $2 dividend af¬

The Easiness Scene Ahead

was

fighting depression with¬
the job to government.

tiative in

whatever, some 90 years. Since organization cash
have totaled approximately $33 y4 millions; stock div¬

Glens Falls shareholders have a pro rata beneficial interest
Falls Corporation, whose assets consist of 3,600 shares
Glens Falls Indemnity Company and 100 shares Commercial In¬

in the 10 years ended with 1955
period the value of the company's assets

another depression

of what

aware

payments

Glens

Growth of premium volume

is fully

leadership in America

ness

busi¬

convinced that able

interruption

pany,

militarily strong.

she remain

volun¬

reserve.

record of Glens Falls goes

said to the

people that it is every
bit as essential that this nation
remain economically strong as that

1954.

The dividend

the President

In effect

American

the

liquidating value and
in

gain

reserve.

equity

plus

reserves,

re¬

President Eisen¬
repeatedly summed up
Administration's position: "A
how

member

3.4.9

hower has

lines of insurance, except life; and

all

writes

company

—

1954.—

was

premiums were paid only partly in cash, with
passing for the balance.

in that

premium

*$0.36

2.25

still, he should

better

Or,

$2.63

2.22

Credit.

Little, a Methodist Minister, who had been
give up this calling because of a throat ailment, became
an
insurance agent and sparked the idea of establishing a re¬
sponsible organization to write insurance, for there had been not
a few companies that had been unable to meet their commitments
and disappeared, from the scene leaving worthless policies out¬
standing. The name of Dividend Mutual Insurance Company was
chosen for the new venture, and was retained for 14 years, when
the present title was adopted.
Mack

forced to

The

Low

$0.82

depression of the

'thirties.

Range

High

1953

required special legislative acts.

Russe!)

Price

Assets

„

1952

Company was

Until about the time that Glens Falls Insurance

Invest.

Value!

1951

INSURANCE COMPANY

GLENS FALLS

Liq.

Earnings

1950—

Insurance Stocks

Net

Taxes

1949—

This

Fed.

Income

1947___

By ARTHUR B. WALLACE*

Invest.

Gain?

18, 1956

Thursday, October

wrought by the

Ten-Year Statistical Record—Per Share
Adj. Und.

Bank and Insurance Stocks

business

very

leaders

that

great
At

probably

serious

victory for the
least

send

would

farther

down the leftist

road, perhaps far
enough to destroy much of what
remains

free

enterprise.

Anyone who doubts such a risk
should
recall
the
revolutionary

political

and

economic

changes

strains

the

managers

of our cur¬

rency.

Equally impelling is the indebt¬
of individuals and
busi¬

edness

much of which was con¬
a period of high prices.
A depression with millions of un¬
employed
would
destroy debtnesses,

tracted in

paying ability to such an extent
that our entire financial structure
would
be
threatened—not
only
commercial banks, but savings and
loan associations, mortgage com¬
panies, savings banks, and insur¬
ance companies.
Sounder

(5)

Security Market

My fifth point relates to the

securities

market

,„ith

1Q9Q

today
TnHav's

com-

markpt

Volume

184 * Number

5578

The Commercial and Financial Chronicle

is in much sounder condition than
the

was

whatsoever

of 1929,

one

movements.

Margin

against

work

We have

regulations

speculation

and

favor of investment. The thin 10%

margins
the

of the

old days
far

market

tions than

exposed

had

investment trust funds

relatively steady flow of
money to be put to work lend
greater stability in today's market.
a

mention

the

these differences be¬

break

in the

market in

October,

1929, heralded what

come.

that

one

about
in

streets, sanitary sewers, and
police and fire protection in order

44,000,000

than

probably

did

was

Buying

to catch* up.

say for sure
depression. It

not,

but

contributes

falling

adverse

hands is tremendous.

disposable
rate

personal

The flow of

income

substantially

ahead

And in addition

age.

year

consumer

of a
to the

ness

wholesome

For

those,

then,

who

contend

history is about to repeat it¬

self

point

set of circumstances.

important

ones

different

$300 billion. This
bank

and loan

deposits,

and

savings

accounts, insurance value,

etc.

is actually ahead of last year;
and it is now held likely that 1956

will set

all-time record in

struction,

despite

residential

Serious

see

economic recession—not
tant

her

public

Because

war

fense had to take top

prospects of

serious
dis¬

even

prospects—and certainly

none

approximately a decade and
half, the United States has not

standards.

Economic

Recession

decline

construction.

For

maintained
No

con¬

fell behind to such
we

must

dollars

and

priority,

spend

now

works
de¬
we

housing

least

schools, hospitals, high¬

million

ognize

supply,

Unlike the

authority,

"boom and

Instead,

situa¬

must

rec¬

the

monetary and credit
a
progressive economy,
healthy by virtue of the

made

half

present

our

reflect

the

War

who fear that
the

high-birth

may

construction, I
seen

have

bet that

offices

the industrial

business.

American

front, science

business

these

words

found in the

were

not

see

PORTLAND,

look

scene,

ahead

name

and

securities

was

own

Rapid

con¬

for

bids

stated

that

29,

Mr. Crossley

complete information
the
issue has been-

concerning

all

Oct.

$6,500,000 Air¬

prospective

acquaint

fully

bidders

issue,

with

the

information

dealers

details

meetings

and
the

will

be held at the Bankers
York

City

Club, New
Thursday, Oct. 18 at
Chicago,
19 in the Assembly

3:00 o'clock P. M. and in

Friday,
Room

Oct.
(1552)

of the

Field Build¬

ing at 10:00 o'clock A. M.
terested parties are

All in¬

invited to at¬

Van Vechten Director
NEW

Ore.—Wendell

Building

of Wendell

Kindley

economy today—
on
the business

secu¬

rities business from offices in the

dictionary of 1929.

our

Commerce

Kindley is engaging in the

Midst of Tremendous Growth

Colbert

call

issue of

tend these meetings.

Corbett
In

engage

Mr.

with

Maury
of

(Special to The Financial Chronicle)

will

port Revenue Bonds.

Kindley Opens in Ore.

velop fields unheard of in 1929;
petrochemicals, electronics, ultra¬
sonics, and atomic energy. Some
of

and

Bank

& Co.

de¬

previ¬
ously with Waddell & Reed, Inc.
Mr. Maury was with W. L: Lyons

has provided our economy with
undreamed of opportunities—chal¬

lenged

in the

Building to

have not

1956

investors

Ky.—Richard

Colbert

formed

seen

anything yet.

even

Dallas

Colbert, Jr. and Hill Maury have

of residential

that it is

say

rates

To those

years.

greatest period

DALLAS, Tex.—E. Lynn Crossley, City Auditor, Dallas, Texas
has announced
that the City of

and interested institutions.

(Special to The Financial Chronicle)

LEXINGTON,

Meetings
Airport Bonds

Re Dallas

mailed

Form Colbert & Maury

family formations

new

N. Y. & Chic.

bust"

needs

century.

Reserve

see

tion at all.

nearing the time when

are

World

extent that

billions

Federal
not

and 1960 to maintain

than

Total construction in dollar vol¬

Some of the

have just laid

now

form

than

quarter of

substandard housing.

not less than

out.

Sees

nate

posal of our people in the amount

savings bonds,

will have to be built

year

present

the

provide standard housing for our wholesome changes that have been
growing population, and to elimi¬ wrought in our way of life.

ume

that

can

our

will

busi¬

atmosphere.

the rate of

psychology—a fear psychosis, not
conducive

units

income, there is a
backlog of liquid assets at the dis¬

1 *

minimum of

flow of current

ecpnomic growth and
expansion which easily could last

has boomed for several
years, au¬
thoritative estimates indicate that
a

in the midst of

we are

tremendous

Although dwelling construction

between

power

vinced that

ways,

1929.

can

the

caused

market

cause

now

funds and

cause

would

population of around
167,000,000 people—good Ameri¬
can
people accustomed to having
more goods and services than any
other people in the 'world.
That

fluctua¬

wider

exist. Forced liqui¬
dation is much less now. Pension

with

that

depression.

Speculative forces today play a
comparatively smaller role in price

(1655)

under the

formerly

investment

City,

firm

Kindley Co.

Mr.

conducted
business

his

from

S.. Dak.

BRUNSWICK, N. J —
Van Vechten has been
director
of
Triangle
Conduit
and
Cable
Co.
Inc., it

Schuyler
elected

was

announced by J. E.

President.

Mr.

Vice-President

McAuliffe,

VanVechten

Lee

Higginson
Corporation, securities underwrit¬
ing and investment firm.
•

PRODUCTS OF

PHILIP

MORRIS

PRODUCTS OF

CREATIVE
RESEARCH

Probably

distinctive
has

The

ever

other maker has

new

cigarettes in

packaged them

brought

you

Certainly

four
no

other

superbly!

It is another

COMPARISON

MONTHS

NET

INCOME

EARNINGS

Philip Morris first. perfected after years

Philip Morris to set the

bring

pleasure to

pace now

PHILIP

1956

1955

$83,200,451
AFTER

PER

MONTHS

TAXES

COMMON

ENDED

$74,488,628
3,370,626

3,437,834
$1.10

$1.08

and in the future

SEPTEMBER

INCOME

AFTER

PER

8,278,505

$2.93

TAXES

COMMON

$204,087,555

9,245,441

SALES

EARNINGS

$240,462,440

NET

—to

SEPTEMBER

SALES

package for these richly blended brands.

imaginative research, experiment and planning.

Look to

OF EARNINGS

ENDED

NET

Flip-Top, Crush-Proof box is the most suitable,

most convenient

ever

one year.

$2.60

smokers everywhere.

MORRIS

(1656)

The Commercial and Financial Chronicle

Ineffective High Interest Rate
Has Come to Stay in Britain
By PAUL EINZIG

Alan K. Browne Heads
San Francisco

Airport
Improvem't Committee
Alan K.

Ineffectiveness of the British

Interest

Rate,

of the

51/2%» to
achieve results originally anticipated, and the conclusion, now
accepted even by Socialists, that the high interest rate, nevernow

Trust

future.

Bank

purpose

listing

Mr. Cobbold,
recently laid

pected

stress

England,

for

the

limitations
the
of

influence

monetary

devices.

indeed
time
t

high

o c

take

of the

situation
the

light of

Britain's

ex¬

perience

dur¬

ing

past

the

two years. For

eight
Dr.

Paul

the

months

—

been

now

5^%.
at

that

the

full

figure

produce

expected

was

dramatic

results, in the
sharp setback in busi¬
activity and in prices. In

form

ness

1956

such

curred.

results

have

oc¬

The extent to which busi¬

the

rate

months.

raised

was

effect

month

two.

sible

hold

the

economy

pre¬

cariously balanced. There is no
safety margin and the Govern¬
ment is not expected to be able
in

level

few

Today most people in Britain have
reluctantly come to the conclusion
that dear money has come to stay.
Quite obviously, even with such
a high bank rate, it is
barely pos¬

crisis

when

a high
in
force

remain

further to 5M>% in February last
it was widely believed that this
stern measure would produce its

British

past the bank rate

surely, such
not

than

Again

Bank Rate has

Einzig

that,

could

rate

afford
the

lower

the

foreseeable

economy

the

gold

reserve

the

danger

still

overloaded
is

point.

the

and

near

point

out

to mini¬

mean

Government's

achieve¬

bringing

situation

ments

still
To

these facts does not
mize

ba,nk rate
future.
The

under control.

the

is quite

But

obvi¬

that the situation will have to

ous

ness

activity has actually declined
negligible, with the ex¬
ception of the automobile industry
where special conditions prevail.
As for prices, it is true
they have
has been

remained

stable

the effect of
of

since

April, but
the impending round

increases

wages

yet

seen.

Ineffectiveness

of Interest

On the basis of this

businessmen
for

reason

have

Rate

experience,

indeeda good

being unimpressed by

the effectiveness of the bank rate

weapon.

the

past

possibility of high
duced

them

the

bank

mere

rate

in¬

their

reduce

in¬

ventories, partly because the cost
of carrying them with the aid of
borrowed money would be
higher,
partly because the value of those
inventories was expected to de¬
cline

result

the bank rate

because

the

demand

consumer

was

three

facts

Increases in the cost of financ¬
<

production

passed

the

can

adding them to
of

the

manufactures.

stances

usually

be
through

buyer

selling price

Even

which

this

in¬

not

rate

inflicts

losses

the postwar rise

continues,

compensated
of

for

their loans

book

debtors

the

value of their

are

higher

by the

rise

cost

the

inventory.

they pay an interest of 6% to
their bank and the
prices of their
goods rise at the rate of 6% per
then for all practical
pur¬

annum

they

poses

enjoy

interest

reason

fear that the
high bank rate would

inflict

them losses

depreciation
or

through

the

policy
ment

full

to
at

of
a

maintain
costs

demand

it is not

full

and,

prices is ensured.
stances

inventories

decline

employment

consumer

through the

their

Government's

all

One

at
In

declared

long

maintained,
prevailing
the circum¬

surprising if the

formidable weapon.

main

worth

the

has

money

their

basis

Let

risk

un¬

out¬

while to

postwar

so.

experience

considered

quate.

grossly

Holders

value of their investments throucrh
the rise in prices. In order to abs¬
into

sums

conservative

vestment, such
it

life

insurance,

for the

necessary

in¬

bonds

for

the

ities

Government Loans remains high.

The

sible

idea

Favor

the

has

been

the Socialists.

Dalton's
the

2% bank
even

On the basis of Dr.

experience

postwar

realize that such

the

of inflation.

other

years,
low bsnk

They have

inflationary

The Com¬

informing

the importance

giant
in

tne

pro¬

that

meet the demands

jet

that

transports

service

less

than

three years.

The bonds, the Com¬
mittee points out,
will be selfliquidating, and within four years
at

the

latest the airport will be¬
wholly free of tax support.
Thereafter, it will provide the
City with net profits averaging
more
than
$1,000,000
annually.
Within 15 years, all of the airport
bonds, including those now out¬
standing as well as the contem¬
come

have

issue

$25,000,000 will
redeemed, it is stated.

been

The

volume

the

airport in

the
ure

projected

business

Committee

master

plan

1955,

done

for

according to

exceeded

1960

the

fig¬

when

the

adopted in 1949.

was

Geo. 3. Channer Jr.

they
rate

CHICAGO, 111. - George S.
Channer, Jr. has opened offices at
South

Mr.

the

Salle

Street

formerly with
Barcus, Kindred & Co. in charge
of

the

and

institutional

sales department.

FLUSHING, N. Y.—Julius L.
Keller is
engaging in a securities
business

from

offices

144-41

77th Road.

W. L. Jenkins Opens
LUBBOCK, Texas — William L.
Jenkins is engaging in a securities
business from offices at 2306 20th
Street.

was

representative

formerly

for

Reed

local

With United Investors
(Special to The Financial Chronicle)

Colo.

—

Lloyd

tional

would

money

In order that such policy

safely
be

undertaken

necessary

Center.

Joins American Sees.

first of all to

period of

to restore

years and

thereby

public confidence in the

wdrk

highest

during" the

GREELEY,
Hitchcock h
with

Colo.

a s

American

—

become

Hugh

money.

Mclnnes Adds

spending perhaps another
$3 billion, in contrast to a com¬
bined total of $3 billion in 1950.
Last
on

Daniel T.

Fla.

—

Abe

Cropp, William E. Faulk,

Joseph Holtzman

and

Virginia B.

Rothwell have been added
staff

(Special to The Financial Chronicle)

Aranoff,

and

Mclnnes

Huntington

Building.

Co.,

the

Inc.,

Biese

staff
24

Julia

with

Merrill
Beane.

has

been

added

the

King Merritt & Co., Inc.,
Street. He was formerly
M.

Kidder

Co.

expenditures

equipment,

and

Lynch, Pierce, Fenner &

partly to replace outmoded

made

facili--

ties and partly for new of

expand¬
ing yentures, reached the record
figure of $29 billion.
This year
.

such

expenditures

reach $35

Will

probably

billion;/;i :

■

I cite these facts to
suggest that

the

spread

economic

ooportu-

■nity

and well-being, which
revolutionized social life: in

generation,

has
our

may be expected
to
the years ahead? As

the number of. jobs
increases, both

working

conditions

will improve.

pay

rates

and

In another ten

rate

approach the $600 billion mark.

On the other hand, the
professional and managerial group
now.

currently accounts for 19% of the
work

1940.

Third,

small

business

and

continues

independent

im¬

portant gateway

of economic op¬
despite the spread of

portunity,

giant corporations.

Over 4 million

independent concerns are pres¬
ently engaged in various types of
business

and

their

number

growing. Indeed, there are more
independent business firms today,
in

relation

the

Size

the

tion'Siwork force, than there
1929

na-

were

progressively rising
is being shared

our

In 1955, 54% of American

1947

and

48%

1952.

Labor

income—that

is, wages, salaries,
security benefits, and re¬
payments—constituted 70%

social

lated

total

rose

personal

74%

income

1952,

and

76%—the highest it has

1946,

ever

now

been.

markets since the early months of
1952. In consequence, the savings

recently accumulated by people
through bank accounts, life insur¬
ance policies,
pension funds, and
savings bonds have remained vir¬
tually intact for meeting life's
contingencies and opportunities.
Impulse
With
ment

Improvement

high

level

sustained

about

and

employ¬

with

income

$414

annual

billion,

may

Aiding Farm and Urban Labor
We should not,

however, permit

this favorable outlook to lull us
into the belief that the future
will

necessarily

unfold

opportunities

ever-widening

for

peoole.

nomic progress does not

tomatically.

Eco¬

come

requires

au¬

intelli¬

gence, effort,
and enterprise
the part of individual

citizens. It
requires encouragement of private
initiative and protection of in¬
centives

the part of govern¬
It requires both
private and

ment.

public

policies

either

income

widely.

proceeding

tendencies

1939.

families had a money income of
$4,000 or higher, in contrast to
42% with equivalent real incomes
in

rently

force, in contrast to 14% in

for

may

economic

resisting such
develoo toward

recession

or
in¬
And it requires the vision
to realize that not
only is the gen¬
eral
welfare

flation.

enhanced,

base of future

but

the

prosperity itself is

strengthened

when we draw into
the stream of progress those who
have been left behind
by its on¬
rush.
I shall not dwell on the
prob¬
lems of commercial
farmers, which
are known to all of
you, except to

that promising steps are being
to improve farm
incomes

say

taken

bringing

agricultural

produc¬

tion into better adiustment to
rent

markets.

have

received

Problems
less

public

tion, but of which

cur¬

which
atten¬

should

increasingly mindful,

are the per¬
sistence of unemployment in scat¬

tered localities, the persistence of
low incomes for large numbers of
people in rural areas, and the ac¬

cumulating pressures under which
many
small
businesses
operate.
Let

just

say

few

rising, most of us have been able
to work, spend, save, and invest
in an atmosphere of confidence in
The

great

automo¬

electric

words

each of these problems.

good home,

refrigerator,

washer,

even

become

the

owner¬

television set, has

rule

rather

than

the

exception in American family life.
At

time

our

history have
people generally been so eager to
raise their level of
living and td
hard

attain
as

the

incomes

they feel they

should.
This impulse to improvement on
the part of people is

Although
is

communities

the

country

Recent

lurgy,
bers

fruits

and

radioisotopes, metal¬

plastics,

are

synthetic

widely known.
research

ment

have

these

dramatic

virtually

and

not

every

and

been

But

the

develop¬

confined

achievements.

branch

fi¬

large

different
which

and

some

parts of

substantial

which the community had
spe¬
or to
outward migration

cialized

of one or more of its

key firms.
only proper that the re¬
building of a local economy should
depend largelv on the initiative
It

much

citizenry.

that

the
do

can

communities
It

can

render

local

omy.

Yet there is

Federal
to

help
help

Govern¬

depressed

themselves.

technical assistance

groups

plans for

drawing

rehabilitating their
can

join the state

econ¬
or

lo¬

cality in extending loans for in¬
dustrial

improve

try, scientists and engineers have

are

areas
are
usually traceable to a
shrinking market for the product

indus¬

there

unemployment is continuing. The
difficulties
of
these depressed

ment

investment.

nation

prosperity,

of the local

and

the

enjoying full employment

being power¬
fully reinforced bv industrial re¬

energy

JACKSONVILLE, Fla.—Adolph
C.

business

year,

plant

10%

technological marvels in electron¬
ics, jet and rocket flight, atomic

King Merritt Adds

(Special to The Financial Chronicle)

MIAMI,

1515 Eighth Avenue.

pany,

devel¬

and

opment, and the Federal Govern¬

stability of

Com¬

about

17% of the work force in 1940 and
12% in
1950, number less than

they need to live

connected

Securities

research

the

and

spending

Ordinary laborers, who constituted

work

(Special to The Financial Chronicle)

maintain the value of the
currency
over a

Inc., U. S. Na¬
Building, Mile High

Bank

processes.

years, our nation's total output of
goods and services, which is cur¬

bile,
T.

cheap

the

are

ship of

Company.

gravate the effect of such policies

nation's

billion

the economic future.

Sloan

Gould has been added to the staff
of United Investors,

reverting

consti¬

women

materi¬

new

ment is

million this

exceeds

reached

and

the average price level
has been nearly stable in consumer

Julius Keller Opens

DENVER,
ag¬

1946

Fifth,

from "55 Vi

between

products,

continue

was

dealer

use¬

Second, a progressive shift has
taken
place from low-paid and
unskilled occupations to betterpaid and more interesting work.

en¬

investment, business.

Channer

el¬

war.

Fourth,

(Special to The Financial Chronicle)

many

policies

mind, and could ill afford

percentage

national

Opens Own Office

gage

the

men,

rose'

force, which

208

At present
31%
of the

year.

tute

Airport.

at hand and to

necessarily accentuates the prog¬
ress

Browne

the airport may share in the eco¬
nomic benefits of the Jet Age now

pos¬

economy

discarded

disastrous

early

viding the needed facilities

will

well

ment, which
61V4 million

Rate

British

basis of

once more on a

rate

High

that it would

run

Alan

Christopher,
of

well-being in recent times.

1952, is averaging 65

the

opportunity

employr

mittee, headed by Mayor George
voters

facts

new

universities
$3

found larger opportunities for
ful work.
Total civilian

Franc'sco

San

terms

than they have been offering. This
is only possible if the yield on

Socialists

facili-

International

few

Progress

busy—devising

This year, business firms

Economic

derly as well as the youngT even
physically handicapped, have

and

cite

been

als,

the

insurance

attractive

improvement
of

?>'

Women

pay

ization

the

First, jobs have been generally
plentiful during the past decade.

modern¬

companies to be able to afford to
offer much

$25,000,000

inade¬

Government

Loans, and even of equities, have
been earning for many years less
than the depreciation of the real

plated

reasons

come

and

proposed issue

the
yields obtainable until
re¬
cently on most forms of reason¬
ably safe investments have come

employ¬

the

why
stay is
that the British public is becom¬
ing increasingly conscious of the
depreciating trend of their money.
To induce the public to save and
to invest, it is necessary to make
dear

demand.

bank rate has ceased to be
looked
upon as

bringing about thereby
rise in prices and
flow of gold.

policy.
to

the

wanted

could

have

rate

free

loans.
Producers

bank

the Treasury than on the ultimate
recipients of the profits owing to
the high level of taxation. More¬

over, so long as
in prices

the

afford

pos¬

sible the reduction in the
profit
margin through the higher inter¬
est

lower

could

con¬

operate.

ing

considerably before

very

Macmillan

tract

existing

these

none

prices, and partly

expected to fall.
ditions

effect

improve
Mr.

Nov.

diffusion of economic

1 ectorate's

support

Opportunities

the

tasks

Spreading

of en-

In 1955, when the bank rate was
to
4Vfe%, everybody ex¬

the

was

High Interest Rate Must Stay
raised

..face

formed for the

LONDON,&Eng.—The Chancel¬
lor of the Exchequer, Mr. Macmillan, and the Governor of the

page

To Widen Social

National

America

Thursday, October 18, 1956

What Government Must Do

i t tee

o m m

which

from first

Browne, Vice-President

Bank

Savings Association, San
Francisco,
is
Chairman
of
the
City - Wide

theless, is here to stay, is set forth and examined by British
economist Einzig.

Continued

projects
a

that

promise

community's long-range

economic outlook.

ute

rebuilding the

the

cost

can

contrib¬

Volume

184

Number 5578

blighted commercial
sections

nity, just
the

The Commercial and Financial Chronicle

industrial

depressed commu¬
it is now contributing

clearing residential

To make substantial
prog¬

along these lines,

ress

cost of

slums.

lation

istered,
harsh

needed.

will

legis¬

new

Wisely admin¬
to

serve

the

ease

adjustments that

often

are

forced

on people
by our changing
economic environment and at the

time add to the resilience of

same

the

can

strengthened.

indeed

room,

for

widening economic opportu¬
nity and improving the workings
of

Ways and Means Needed
For Raising Federal Revenues

our

economy.
But as we bend
energies toward this high ob¬
jective, we must steer clear of

President, Investors

and

make

can

widely

Guidance Aid
A

difficult and

problem than the chronic

ous

employment in
is

un¬

few of our cities
ineffectiveness of human

the

general

vide

education

guidance.

struggling

of all forces

eration.
skills

farms that

too

are

too poor for efficient op¬
Here we find inadequate
the

part of people

and

vocational

and

When jobs

available

rising national clamor for

complete

effort in many of our rural areas.
Here we find numerous families

small

The

of employment, by encour¬
aging investment in new tools of
production, and by improving

Federal

change

taxation might

some

ments

the

productivity of
labor is rising, the most powerful
lift

are

low

the

incomes

and

spread

Sub

inadequate opportunities for offfarm employment.

nal

poverty

ters

these

which

areas,

are

heavily concentrated in the South.
Price supports yield little benefit
to the small farmer.
:
The

most

basic

ing

way

their

the

meet

needs

and

for

production

adapted

low-income

farmers.
loans must

Improved health and

must

formation

part-time

enlarged.

nutrition

Agricultural

must

work

farmers

young ,people

there.

extension

Credit

the

for

growing

promoted.

services

tunities must
farm

improve

training and guidance
must be greatly ex¬

programs

panded

education, and their work¬
abilities
and
opportunities.

Vocational

areas

job

In¬

oppor¬

established.

Off-

jobs must be created through

increased

industrialization.

The

Federal

Government,
acting
in
cooperation with state, local and
private groups, has recently es¬
tablished
a
Rural Development
Program along these lines. This
program should be expanded, as
experience
of
in

accumulates

progressive people.

ative forces
tive

enterprise,

new

small

position

businessman

attention.
eration

During

certain

also

the

of the
requires

past

gen¬

basic

changes in
the economic environment—par¬
ticularly, rising taxes, the accel¬

erating
the

pace

growth

ing—have

technology,

national

complicated

and

advertis¬

the

prob¬

lems of organization, survival, and

•growth

smaller

businesses.

Small firms have alwavs had little
or

for

to the public markets

access

capital.

In the past, however,
able to expand their

tarian

times.

own

recent

have encouraged
initiative, innovation,
and investment, and yet have been
years

mindful

ever

individual

the

for-

protection

the

articulation

current

our

strength
for

lies. -yThere

confidence

will

future

and

which

nowadays is

se¬

verely limited by the heavy bur¬
dens of taxation.
must

recognize

this

and

impediments facing smaller

businesses.

small

Some

businesses

tax

the

relief

for

long overdue.

facilitating and
participation
of

small business in government con¬
tracts. The credit needs of sound
small

businesses

fully.

closer

work

should

mergers

imposed

desirable

improving
small

should

the

businesses

the

measures

interest

ooportunities
to

thrive

and

time to become larger, so that
may

met

small enterprises
Such

few

ways

our

nation's

they

the

prosperity

that,

al¬

wait

and

abide by
t

of such a grouP as

King Merritt & Co., Inc;

willing

the verdict
have

Jo£~

Trainor

poration

for

t i

the

clearly honest verdict."

all

season

the

Annu

pay

Coleman

place of

to be determined

thorough
Our

all

job

intelligent

Constitution
bills

revenue

referred

the most

provides

that

must

ajid

ways

means

revenues necessary to pay

r~3ra,ithe cost of
a

our government. It
the intention
v/JL
of
the

V vi
never
llv

This

question

CAAiy

AAA t<v7A A

unenforceable
even

members.

tiAA1A

These
are

arid not

un-

some

its

(same com-

now

about to

investigate the unfairness pi' the
laws they so unfairly them¬
selves created! Presumably, tfieir
hearings will result in stfme new

President:

zine and
in the
an

asked by

was

ship between

crisply written article

paid its workers? What indus¬
tries lead in the amount of

October issue provides

McBride

Corpn. Ltd.,

answer.

The

story-Pay:out Ratios—also
another

covers

habitually

wage,

ever

ar<e® ~rn

needed, it is right

was

now

Co.

Ltd.;

and

Ross, Knowles & Co. Ltd.,

in the field of taxation.

The

executive.

L. W.

Virtue, James Richardson
Sons, Past-President and S.
Cox, Bankers Bond Corp. Ltd.,

Vice-President,
members

for

are

the

ensuing

ex-

Ways and Means Commit¬

tee in the 84th

Congress comprised

each

iority basis—not

Committee members

How

help

Acennioiinn
Association

Investment
Banks

firms

made
and

Toronto

is celebrating

Char-

and

this

other
on

sen-

merit basis.

partisan party politics
to
dominate
such
a

can

but

group? The members of this Com¬
mittee shouM be the first ones to

champion
eminent
T.

the

and

proposals

unbiased

Coleman

year

tered

rpax

such

p0ijPV

Andrews

and

ax F

fommittpp

past

Says

"timely information about stocks ..denh of The Worthington Coris typical of The Exchange
Portion, for his, views or. our
Magazine. And there are plenty .economic future. In No Roam
'0f other examples in the October
F.QrJfessimism, Mr. Schwanhausser,looks at the future bene¬
and'other companies

issue.

fits fox, his

Hanly

Mr.
a

Stock

Ritchie, who in

any

+;
-

Gets A New Look

such-activities
atomic

building,

•

highway
devel¬

power

opment,

What

effect

stalwart institution

can

more.. common

jstock financing have

industries?The

the

na¬

Trend

industry

ers

trends

corporation

Every

ideas for both

<j,*p

leant'qhift

the

* s gmtieant shin ill the

method

raising additional

capital.
Effect of

Capital Investment

Is there

issue

The cost of
—12

facts,

offers
new

and

The

important relation-

new

experi¬

year's subscription

monthly issues—is only

Clip

the

coupon

and send it with your

Wages

execu¬

enced investors.

dollar.

and

today

tives, analysts, financial editors.

ing outlines what

these'timely and provocative

articles from

Toward Common Stock Financ¬
may prove

and other

automation

one

below

dollar

now.

Exchange Magazine can't

be purchased at newsstands.

thp

see

Andrews,

would be

"What

I'd

whole

what to

one,

oughly

come

up with
and that is that the

revenue

studied

system
out

THE

EXCHANGE

11 Wall

Magazine, Dept. 7
Street, New York 5, New York

commission

by Congress, without
deadline, without any instruc¬

tions

and

be1 thorthat

Enclosed

is $1 (check, cash, money
order). Please send me the next 12 issues
of THE EXCHANGE Magazine.
^.3

NAME

the

income tax in particular be given

rea^ S°ing

the

Exchange,

has

lhat

member

recently been with Lee Higginson
corporation.

from

Corporate financing

cy CommlUee ot the

Mr.

HEIGHTS, N. Y.— —except

was

York

The Change Magazine asked
Edwm,J; Schwanhausser, Presi-

tax

American Institute of Accountants.

like to

Frederic S. Ritchie has joined the
staff of Edwards &
Hanly, 83-18

the

;

exPert J. S. Seidman, Chairman of
fue

its 25th anni¬

With Edwards &

New

too.

An Executive Looks Ahead

authorities

appointed

JACKSON

per

the highest

pay

Giving its readers this sort of

tion's

tee succeed

Thp
ine

usually

Tfie Exchange Magazine gath¬

was

15 Democrats'and only 10 Republicans. Chairmen of this Commit-

past

industries

capital invested

Telegraph recently switch from
debenture to equity financing?

there

government, or an era in higtory,
where x>r when, new, clean, intel¬
ligent and unbiased nonpolitical

Thomson

officio

indicate

most

worker

(

that

with

important point:

What size companies

supporting sta¬

tomorrow.

Williiams, The Canadian
Bank of Commerce; L. E.
Mayhew, Harris &JPartners Ltd.; S. A.
Spidle, Collier, Norris & Ouinlap
Ltd.;
T.
G.
Mulligan,
Nesbitt,

new

This

article and the
tistics

''surprising-clue to the

like American: Telephone &

action

the

capi¬

worker?

per

Why did

If
C.

Treasurer.

invested

tal

illuminating—and somewhat

Congress.

Securities

will serve

company's capi¬

of patchwolk tax bill.to be
introduced in" the rtext session of

Co.

tal investment and annual wages

kind

Crysdale,

Exchange Maga¬

reader of The

tut8 thfriatter ifSc'at^ -*W<tends? "

Jar-;
vis, Wisener &
Co. Ltd., Vice-

Anderson

very

;

dividends?

generous

supposed to be respon-

are

derstandable

E. P.

the House" Committee

mittee members

executive

are:

;

and

originate
in the House of
Representatives.
By House Rule, they are, always

own

bers of the
new

with

nonpartisan research.

unfTr

mem¬

affiliated

now

rxonpolitical

commission of experts based'on

"commeendeedr-ateaxy

fcr

„

Dorothy

method of taxation

a new

what it has been doing for years

atx
a

are

and

Renyx, Field & Co., Inc.

a non-

complete abol¬

income tax and substitution in its

vsibJLe for the

Association.
Other

the

for

out

mittee

Meeting of the:--

Bash

ishment of the individual Federal

tr*

Which industries

named

man

Ways and Means. As its name
implies, the members of this Com¬

1956-.

-f. v"

COLORADO SPRINGS, Colo.-

gested, provided, of course, that it

Says Mr. Seidman, ''Only

r»

Wlt" Kenyx Field

suaS

gentle-

versary.

Balance

in .which

and

In these remarks I have tried
to

base

FT.
LAUDERDALE,
F 1 a.
James E. Bredenberg is now with

tra-

our

Midland

37th Avenue.

sketch

dition of freedom but I

Andrews, former Commissioner of
Revenue, who seems to

overgrown

and

(Special to The Financial Chronicle)

even

•%•§!
Secufitie^eM-'"-S?«*ors of this ^mittee that it pay out the largest proportion
Ltd.~was elected?
become a vehicle of ad- of available earnings jn eommon

year

businesses.

Achieving Growth

With King Merritt

...

made

Internal

TORONTO; "Canada—C.
Bride

challenge the primacy of old

established, and often

Jackman

Ck&jTjg,*i&osing

The burden of paner-

should be reduced.
are

Legislation to enable

scrutiny of

be enacted.

compatible with

Much

balance

Elect New Executives

extending

grounds

Toronto Bond Traders

with

are

maintained and extended.

Ryan,

view

economic

though there rqay be pauses in the
advance of prosperity, our eco¬
nomic and social progress will be

The procurement policies of gov¬
ernment
need
to
be
simplified
a

this

that

continued

done

balance

and

these polieies-fthat a large part of

Dominion

other

against

unemployment, in¬
flation, old -age, illness,M and
blighted neighborhoods^ It -is. in

The

the

needs of

the hazards of

that

can

heard

individual

businesses.
be

fair and

and

Ways

from
William

^compliance."

House

will

released by our
Governmental policies

Ltd., Sec¬
retary, and J.
A.
Lascelles,

can

Means.

impulses

they were
plant, equipment, and markets by
ploughing profits back into their
extent

Inter-

generally understandable, let alone

Commi ttee

some¬

dent of the Toronto Bond Traders

Business Problems

economic

Commit-

Revenue

the

earlier

exclusively, are deriving
strength from the humani¬

Assoc i

The

■

which

Mills

Taxation

competi¬

generations dwelt justly but

ways

improving the level of living
underdeveloped rural areas.
Small

and

tee

cre¬

what too

our

■'

of free

The

tax law that will enjoy unques¬
public respect, confidence

constructive

aiding the low-income families in
rural

The

ideals of freedom.

our

don't think

favored

now

tioned

shortly

the

workshops of America are
humming today with the energy

The remaining
America largely cen¬

under¬

taken

prosperity.

hearings
be

already operating

during

course

range objec¬
tives of the commission should be

derstandable, fair, and compatible
with

prepared

by the law—the long

it cannot be made generally un¬

develop¬

criticism from groups

well pro-

unexpected

readily

are

League Inc.

methods

politics, and the

must

challenge the most fundamental
principles of the law in the face of

and

level

seri¬

taint of party

commission

Federal taxation.

prosperity is by fostering
competitive markets and a high

Vocational

Investors League head urges both investors and taxpayers to
take immediate political action favoring creation by Congress
of non-political commission to undertake objective
study of

largest contribution that the gov¬
shared

Technical

status and
sponsorship from Con¬
gress, can make the type of study
that will command
public confi¬
dence and respect. There must be

By WILLIAM JACKMAN*

creating pockets of special privi¬
lege in the name of widening op¬
portunity. We must keep before
us always the great truth that the

partisan commission, with official

New

our

ernment

economy.

There

considerable

(1657)

over,

with the

idea

ADDRESS.

substitute be found for it if

*From a speech by Mr. Jackman at
the Annual
Meeting
of
the' Investors
League, New York City, Oct. 16, 1956.

CITY.

STATE.

The Commercial and Financial Chronicle

(1658)

date and

tration to

the

years.

turning away from or even modification
national government must assume

that the

them to be a serious

large proportions. It means that for at least another four
years the government of the country will substitute its
power and its doubtful wisdom for the individual initiative
and private ingenuity and energy that have given us the
blessings we now enjoy. It means, moreover, that serious
danger remains that bungling will make a bad situation
infinitely worse if and when anything in the nature of a
business or financial crisis looms on the horizon.
It is now evident also that no matter who is elected
of

ment

our

there and apparently
trying to bring something in the nature of orderly man¬
agement of public funds into being. It has in oneMegree
The

succeeded.

another

remains,

fact

however,

that

any of them have said
New Dealers than many

Continued

•

;

Not

only that, but the President has been promising
and better spending if he is returned to office and

get the consent of Congress. Certainly one can not
reasonably hope for anything better from Mr. Stevenson.
The whole course of his campaign oratory and the gen¬
eral tenor of the Democratic platform strongly suggest
that much

greater abandon in dealing with the taxpayer

funds

his

and

would

the

order

day were the

Nov. 6'. In point
up out of the
for believing that he

opposition to be returned the winner
4

of fact,

the

it! would not be difficult to build

speeches of Mr. Stevenson
would return

days of the New Deal. Of
allowance

for the

candidate for

case

the financial

recklessness

course,

utterances

of the

earlier

must make some
apparently desperate

one

high public office, but if what he has been

saving is not to be taken seriously there may presently
have to be an answering to a great many who think they
are
being promised the earth and everything that's in it.
And

There

and

Acts

the average
which borrows today

consequence,

corporation
at

still

unless

not

been

even

ihention

those

laws

the

must

assume

that

the

Securities

Act

Securities

Exchange Act of 1934, to say
nothing of a number of related statutes, will remain
without ameliorating modification for at least another
four years quite regardless of the count of votes next
month. Unfortunately, so little has of late been heard of
this subject and its importance not
only to the securities

■

business
the

such but to the

after

Because

wisest,

the

may

part of it depend¬

way

stili

day. It

tax-

our

interest

considerably

doubtless

which is of
ness

they

good many of them do, that this is

concern

are

only to

matter

few or to the securities busi¬
badly mistaken. They and the country will,
a

however, have to wait at least until another election rolls
around before

even

good start

can

be made in correcting

this situation.

laws, bor¬
cheap¬

rates

eliminate
L

meates

the "soak-the-rich"

these

statutes.

did rewrite the statute
office. We shall
version
we

not

is better

do say

is that

that

The-Eisenhower

present per-

other

factor

ferentiates

soon

Administration

after it

came

into

undertake to say whether the present
worse than the one it
replaced. What

far

the distribution of the tax load

went

Savings

point
I

not

out

world

cal

short of skilled

are

ture

reversal

policy,

Nov.

available and

things

re¬

velt

aren't

Public

likely

very

have

of the

some

units that want

in order that

plans.

some

handled.

The

decades

other

80%

this

borrow

they may spend will

now

savings
companies

life insurance
and
pension
funds.
Furthermore, a very substantial
part of this 80% of savings going
banks,

institutions is

basis,

These

for

not

are

change,

instance

contractual

life

contractual

susceptible

insur¬

relations

rapid

are they influenced
infinitesimally by pre¬
vailing rates of interest. Thus, it
nor

than

to me in the field of longcapital there is a certain
rigidity not present in earlier pe¬

seems

term

riods

and

that

not

have

much

flexibility for changing the
supply
of
capital
to
meet
de¬
mands.

Now

what does this tightness in

cases

some

money.

going to financial institutions such
as

part

postpone

there is

Unless

change in the

between the supply
of and demand for savings, com¬
relationship

savings

what

petition

for

available

is certain to continue, if

noticed

are

You have already

not to increase.

business,

your

for

recently bonds have been getting
more
attractive to many institu¬
tional

investors

compared

real estate mortgages,

ing

particularly
speculative types of build¬

ventures.

well be, particularly in
of
corporate
busings,
that those who find it impossible

the

may

field

raise money by
borrowing
will
decide to raise
money by selling stock.
This taps
too

costly

different

market mean for busi¬

the

bond

general and for mortgage
bankers
in
particular?
If I am

are

ness

correct in my

analysis, the present
stringency is due not to the Fed¬
eral Reserve's policy nor the Gov¬
ernment's fiscal
policy.
It is a

area

savings
I

reflection of
that

the

consumers

would-be

businesses

ducers,
of

people
and

America

home

owners,

homeowners;
America

distributors

the
pro¬

suppliers

services; and the governmental
of

borrowed
the

the

will

stock
bond

market
market

than

believe

Even

relieve

credit

if the
some

who will find

money.

the

impossible to set

will

down

for

look

relief.

the

seems

Soss is

will

has

many

great question is whether we

will

have

resist

the

political courage to
specific pressure groups who

Monday

illiteracy

Join White Co. Staff
(Special to The Financial Chronicle)

ST.

Mo. —William

LOUIS,

Huether,

Miller,

Henry

McGrath,

Joseph

Eugene

Mohr,

Bernard

Smith,

Curt

E.
M.

Vogel, Edwin G. Volz and William
P.

Young have become associated
White

sippi

The

financial

combat

will

political issue as
times in the past.

successive

Proceeds will be used

among women.

with

current

The matinees will be

five

afternoons.
to

approach to the principles

investing.

held

have

will

series

events

moderator.

The

inevitable that sooner or later this
become

Wilma Soss

Among those

participating will be: A. Wilfred
May of the Commercial and Fi¬
nancial Chronicle; Miss Dorothy
Armbruster, Vice-President, Bank
of New York; Harold X. Schreder,
Executive
Vice-President,
Dis¬
tributors Group. Inc.; W. Sturgis
Macomber, senior analyst,
Rey¬
nolds & Co., President, New York
Society of Security Analysts; Eli¬
jah N. Jones, Francis I. Du Pont
& Co., member, Executive Com¬
mittee, Customers Brokers Asso¬
ciation; Edmund W. Tabell, Walston & Co.; Harnold W. Clayton,
Hemphill Noyes & Co.; F. B. Wadelton, partner and Vice-President
in
charge of investments, Lord
Abbett
& Co., fund managers;
Joseph M. Galanis, of Tucker, An¬
thony & R. L. Day; and Lewis
Gilbert,
author
"Dividends and
Democracy." Wilma Soss, Presi¬
dent, Federation of Women Share¬
holders in American Business, Inc.

the

going |to

they desire.
Undoubtedly,
in the past, borrowers who are

Government

which

Wilraa

of Bonds

strain

Inc.,"

President.

equity market does

funds

turned

tight and very likely
get tighter until there is some

than

new

market, there are

savings

currently

be both individuals and businesses

already

are

rather
for

Equities Instead

Using

have

country and

remain

the

available

America

seeking to borrow at a rate that
is higher than the creation of new
savings. Money is therefore going
to

where

prosperity and of the

market.

witnessing instances
corporations are going to

the

Ed¬

o n

Women,

already

money

t i

it c a
i

govern¬

the
Foun¬

for

Economic

the

of the businesses and

some

mental

periods of stringency.

then

around

savings

enough

un¬

auspi-

dation

people,

three

first

the

Roose¬

Hotel,

ces

of their
high rate
century,
according
to
the
best of interest may prove a mild de¬
available
figures, approximately terrent to anticipated borrowing,
60% of personal savings going into* but as I have previously pointed
so-called
intangibles
such
as
out, I believe this deterrent will
bonds, mortgages and stocks, was be very small in most cases be¬
handled
directly by the people cause of our income tax structure.
who saved.
At the present time,
The deterrent will be not the price
of money but the availability of
only
approximately
20%
is
so
In

through

der the

particularly the

labor.

there

and

12 at the

Room,

supply, including

short

"money

Madison

lieve these shortages. It will only
raise the prices of the things that
are

In¬

be presented

matinees"
all star cast of Wall Street

Oct. 15

Federal

not

Woman

will

instructors

manufac¬

will

credit

the

1957"

analysts

coal

Intelligent

series

with

short

are

short

items.

one

situation

short

are

vestor

of steel, the
and*ship¬
ping, to mention only a few criti¬
labor,

dif¬

think

present

just that we

of money.

which

our

from earlier

units

extensively

the various elements in the community obtains,
present statute is as one with the older one:—and for

among

the

notion

higher.

Inflexible

should

fact

Nothing has happened to suggest any probability of
thorough rewriting of the tax laws of the country to

on.

Group of Speakers
"The

to
Current
I

our

jof statutes of this sort. If they think,

collapse later

To Hear Prominent

re¬

Credit Will Not Relieve Shortages

Reserve

not necessarily
the
of raising money to¬
would be the cheapest

even

way

not

is still by far the

though

est,

taxes,

his tax bracket.

upon

change in the demand-supply
lationship.

rate

rate on the bond

rowing

Similarly, the lender,
special tax shelter,

but only

own,

this

has
net

coupon

great rank and file of the people have all but for¬

gotten, the existence
as

country at large that probably

paying

and

from

money

receives

effect

2y2%,

easy

only

placed the securities business of the country

shackles.

1933

Securities

unsustainable boom and a
prices which could only

Tight Money Market Situations
As

ance.

has

which have
in

Those

the best

out our
prosperity over many years ahead.
Certainly this is preferable to cre¬

ating

can

Women Investors

ing

been

has

ington

proceed

diate future, that may be
insurance for spreading

page

Difference In Past and Present

entering into commitments involving
future payments which simply stagger the imagination,
and that contingent liabilities of one sort or another have
grown to incalculable amounts.

—

are much
of the New Dealers them¬

rise

standpoint.

sums

farmer

suggests that they

lead

have been laid out in the name of the embattled
and more are being promised him. It is like¬
wise true—and this is of far more importance than usually
realized or understood—that the government in Wash¬

huge

from

way

i t h nonimprove¬
to
be ? postponed
for
lack of money to finance them.
We have never been able, either,as
individuals or as a nation, to
do all the things we should like
to
do.
If
we
have
to
postpone
some
of
our
plans
and
hopes
rather
than
to
attempt to
ac¬
complish them all in the imme¬

quite disheartening, but it is the truth and
well face it.
,

may as

us
a

have1

ment

selves. It is all
we

necessitous expansion or

leaving the impression that he would revert to

nothing
less

inflation

temporary inconvenience.

business

pf the wildness and irresponsibility of the
regime. Some of the spokesmen of the party in
have not been models of moderation, either, but

power

curtailing outlays here and

been

no progress is being
being considered, to save

even

resist

Conclusion

worst

have seen

all, it does not spell dis¬
aster if some of the plans of the
public
to
spend
on
borrowed
money and some of the plans of

Roosevelt

early end of reckless financial manage¬
affairs, to be sure the present regime has

shall have

the

around

world

After

from further injury originating in New Deal
Mr. Stevenson, orginally the
apostle of moderation, is now going from one extreme to

another

Surely

the

out of

the country

danger of a downturn in business

none

want

and Fair Deal unsoundness.

the

which would further cut the value

painfully clear that

made, indeed that

of the theory
full responsi¬

bility for preventing another major depression, and by
implication at least for a continuing growth of the economy of the country. It means, accordingly, that the powers
that be at Washington wilj proceed with highly dubious
tactics of one sort or another if or when there seems to

iesort

have

enough of the evil results of infla¬

the rest make it

other-things, that there will be

among

advan¬
government
inflationary
policies

would

of the dollar.

might be extended almost indefinitely, but
nothing is to be gained by laboring the point. The party
platforms this year, the record of the present Administra¬
tion, the oratory of the Democratic candidates and all

ourselves fortunate.

means,

tage

list

The

Thursday, October 18, 1955

tion

Continued Paternalism
This

for the sake of temporary

were

state of affairs.

there is not the slightest reason to

should it be established in office for another
If we fare as well under Mr. Stevenson we

should count

which

ones

expect the Democratic party, no matter under
leadership, to make any fundamental change in this

whose

expect change
four

long series of older

product of New Deal thinking. Of course, one could

hardly

We See It

| As

that matter with

Continued from first page

of
All

the

Valley

Company,

Building,

Midwest

were

Stock

Missis¬

members
Exchange.

previously with Barrett

Herrick & Co.

Volume

184

Number

5578

The Commercial and Financial Chronicle

(1659)
Continued

from

page

As regards the

production

output,

A Look at the Basic Factors

several

for

quite

by tne

way,

tion

cost

increases

interesting.

gives

assumes,

American popula¬

only

193

million

1975

compared with the Census Bu¬

reau's
229

low

207

million.

This

short.

things

selling

course,

have

Ameri¬

items

dertook

come.

will

have

become

From here on,

a price increase will reflect
higher costs of finding, producing

shipping

tances.
a

longer

over

Petroleum

dis¬

products

are

good illustration of this.
In

March of 1953, Dr. Byron T.

Shaw,

head

the

Agricultural

Research Administration, said that
he felt the present abundance of
food

only temporary. He took

was

estimate of

190 million people

country.

large

shows

shuns

the

scientific

which

attention.

and

psychologist

school

poor

than

one-third

in 1950 to keep

living stand¬
ards from falling. To do that, he
added, would require over 100 mil¬
lion

additional

cropland
for food and fiber production. That
would be 70 million more acres
than

farmers

bring

into

science

could

economically

use.

will

increase

acres

have

other

words,
get busy to

productivity to make

for this 70-million-acre
Can

tional

that?

City

deficiency.

The First Na¬

Bank,

scientific

information

faster

than

producing it.

The science
cupboard
is
getting bare."
Dr.
Shaw concluded: "Certainly no one
are

believes

that

scientific

advance

in agriculture has come to an end.
But

that

American

farming is

the threshold of any such

tionary

revolu¬

in productivity
during the past three

upsurge

occurred

decades

remains

background

cite

the

connection,

enjoy

life;

"odd";

drop in

rollments in
tural

many

schools.

liam's

might
agricultural en¬

Dr.

Willard

the

one

agricul¬

our

Wil¬

nation's

outstanding agricultural experts at
Texas

wrote

"Agriculture faces

leadership
There just simply
enough

young

its

and

home-economics fields."
Survey
The

for

more
on

force,

tion
and

demand

higher standard of living for
people, increasing demands

its

resources

and

its produc¬

of food stuffs, raw materials,
capital goods as well as con¬

goods.

sumer

That is

tall order

fill.

There
tors

are

some

additional fac¬

which complicate the

even

more.

Handlin
for about

picture

Professor
Harvard

sees

Oscar
a

need

750,000 additional teach¬

for the elementary and sec¬
ondary schools, including replace¬
ments for retirement, and resigna¬
tions, by 1959.
Says he: "The
enlistment of 200,000 or more new
teachers a year between now a^d
ers

1959 would

total
grees

also

absorb about half the

recipients

bachelor

in that period."

calls

25,000

attention

new

working

create

testing electronic tubes

ing

elec+ric

of the tasks of

some

engineer.
tensive

Several

special

t^e^e

n'ish

tempted

months

training

as1jr:

tained
far

the

accomone

what

the tvpe of scientific

in¬

But

ooss'bPit'es

such

are

miracles.

check¬

nerform
professional

meters

degree

limited

training ob¬

high school?

And, how

will

such action go in filling
shortages of technical talent?

talk

about

measures

labor

shortage

re¬

one'

faculty

de¬

Dr. Handlin
a

need

members

for
an¬

nually in the nation's colleges and
universities.

Even

which

possess

the

cer-

won't
the

for

mean

reduction

the

are

for

stick

fellows

long

who

effmiencv.

who

the

don't

step-bv-steo

girls

busi¬

some

"floaters"

job;

want

operations

don't

to
or

One prediction can be made: Of

the four factors of production, the
human

great
over

factor

the

will

vears

present

continuous

and

ahead.

problems

one

adds

selective

face,

controls

Up to

one

case, an

mission

not

was

now

gency

Atomic Energy Com¬
established.
Is there

equally pressing emer¬
establishing a national

for

commission

that

deal

could

the problems that will

with

—

bedevil

will

have

examined.
20

not

should
(again)

consumer

and

thoroughly

After

all,

those

who

under

the

gress

has

will

since
There

the
will

point out that

Constitution

the

re-

than

passed

Banking Act of 1935.

the

"to

power

Con-

coin

money
and
regulate the value
thereof"
and
that
"value" here
means

shortages

services,

general
labor?

and

shortages

labor
in

skilled

The country is doing a lot

of economic

its

social

pants.

flying by the seat of

whole.

Even

increases

wage

there

still

that

remains

firms

closer

the

problem

the

margin

Our

production,
the
prevailing
demand, now in disequilibrium ...i*,.
^
nsu-j,— with
a reduced
supply, would push up
the price anyhow. It is
probably

^a"a«eme"t .m ,the

ginal firms to

purchasing

The

power.

raise their prices

at once, lor the pain costs inyolved in a temporary reduction
in production followed by a subsequent production step up as
demand pushes up prices, can be

present

have increased

the output of
goods. Would it not be more appropriate to reduce the excessive
gradation of the individual income
in return

tax

for

there is

lected

One wonders what will happen
periodically
upward
revised
wage
contracts, agricultural developments, pressure on resources
by an ever-rising population, push
prices higher. Is the Federal Re-

chasing
cepted,
Federal

ceases

exist.

argument
made
ment

in
Act

regard
of

those who

the

substance
to

were

launching

Government

comprehensive

and

continuous

achieve optimum

program to

was

Employ-

There

in it the

saw

Federal

same

that

the

1946.

and

small

formance by the economy. Others,
as Dr. Edwin G. Nourse, saw

which

Act

broad

merely states
ideal goal

objective

toward which effort should be di-

which

would

our

ures

Federal

alter

structure.

lundamentaiiy
fundamentally

tion

price
as

lead to very

can

But

even

increases

which

rapidly

will

come

presses

rising

resources

must be made.

today
to

this

market.

lack

themselves

Selective

apolicable only
namely the stock
r v e requirements

e s e

the

find

position:
are

sector,

one

also

The monetary auto

seem

power

uniform

application.
made

They are based on
geographical distinctions
originally by the National

Bank

Act

°!d

which

keep prices

tion

imaffina-

ahead price rises with

see

which

monetary authorities can
only in one way
namely

deal
make

the funds

avai'able

lest

in-

sufficiency of credit to do business

this

cauSP

higher

price

reduction

level
in

will

business

activity and employment and inThis

COme.

forces

authorities

the

ri5es

by
increasing
supply to keep the
steadv
steady

this

thought

the

apparent
one

monetary

recognize

price

the money
price level

new. higher Diane.
new, higher plane.

misinterpreta-

public

easing

such

not uniform and they
apply to several thousand

non-member

banks:

distribution

which

ments

the

cago

have
past,

view

Raise the Prime Rate
,

short

made

distinction

between

price

must

pressures

present

fense engages in what is in fact
iawSt

penalize the lending
New

York

City

powers

and

Chi-

banks when compared to the

cities

have
large correspondent banking busimany

whose

banks

The

procedure

arbitrariness.
used

What

are

deny such acceleration of

amortization

grant

mis-

and

sources

business and

one

another?

"system"

smacks

criteria

bound

with

Even

intentions,
to

such

lead

mal-allocation

re¬

in plain language,

or,

lopsided

economy,

Small Business Hurt by Tax Laws
The depletion

allowance is

an-

other

sources

predating property

the

Under such

basis
con-

ditions, costs are understated and
a corporate income tax is paid
which is in reality a tax on capiDepreciation charges based
on °figinal c.°st under conditions
?f .risinS. Prices can .bring any
bujuness into trouble in the end,
or ^ w
be a
finance it-

^1£1gs
sources.

1 Goverament^hM

Ihe

government

nas

ppj£fn PP£on£L fn t£l
^"eof denreciaUng assete but
Se answer given to tar to the
gfven so faTto tne
tPe
answer

inariPn„nf<*

^rob,wrn_v1SL* A..AA? A*!
a

^ business, which cannot
0n dePreciatl0n allow¬
finance

itself, should be
given other considerations to en¬
able it to grow through internal
financing. Today small business
is unintIntionally, being discrimi-

ances

nated"against "'ft 'is "entitled*to

a'eJy.,

capital goods be financed

new

out

savings.
This increasing
demand for capital goods, public
and private, which we shall certainly witness, can only be met by
an

increase

savings

the

plant expansion from commercial
bhnks, then the present relationcount rate and the long-term bond

over

executive rewriting of the tax

„

sn^p between the prime rate, dis-

require-

faulty these rules are
therefore, in the name of de-

and

experienced

itself

with
which
monetary managechange in the rules.
'ment can effectively deal and
tnjow
those with which it cannot or
Americans
should not deal such as pressures ™eir banquet table
enjoying tne
arising from
temporary supply nignest
01 atI™ wi
shortages, from negotiations of ™adea variable to
an.
wage contracts
and so on.
This so
QAadL
then makes it veven more imporh
wall k hpgin '
tant to insist that the production

deposits

bank

im-

one

realizes how

-an

leads

credit

unpleasant conclusions,

wa^in^xeahty

are

not

actions leave

only

Government

of original cost.

Federal Reserve authorities wish
"currency" act. Reserve require to curtail business borrowing for

ments

can

it does not take much

the

population
being beyond the control or power of the
Federal Reserve authorities, there
are still other qualifications which
a

the funds available to

unwise steps.

disregard

policies

effect.

up.

credit

one

tion

by population pressures
interprted as being caused by
monetary factors, such interpreta¬

with

The

which urgently suggests
re-examination of the adequacy
of depletion
allowances.
Rising
prices create problems when de-

increases

are

have

but

The

caused

than

depreciation and de-

observer

pression:

this

illustrated

They will hurt
since it will be difficult to keep
going on the higher price level
unless the money managers make

strictive

governmental

price

business

Nowhere

better

case

of incentive

story.
The present 27V2%
was a political compromise at the
time. No one knew what figure
was correct.
We are now faced
with a population pressure on re-

per-

such

in it

existing
damage is

great

particular.

the

sense,

the

and

general

Revenue is not col-

because

loopholes

best

certainly did not un- serve
now
to
exercise
moral
thusly.
If the "pur- suasion on industrial managements
power"
theory
is
ac- to keep them from (unduly) raisthe
distinction
between ing prices?
Certainly, once such
and
state
governments price increases have occurred, re-

derstand

plugging of

something farcical about

tax laws.

our

the

of the loopholes? In

some

considerable.
if

loopholes

tax
laws have in many instances
prevented transactions which would

forefathers

the recent

and

f°r the country as
one grants that

Date?

have

years

mands

public

more or

which, in
less patterns

too many

are

picture.

matter

„

the

contracts in key
made

are

turn, become

the nation faces increased pres¬
sures on its resources, greater de¬

Periodic wage

Cycle

there

the

The entire question of the ade-

the

The Wage-Price

and

products of

quacy of controls over the money
and credit area of the economy

clear

they raise their prices. The same
applies, of course, to marginal

Are Our Banking Laws

credit controls

fusion.

step.

done to the assertion

housing loans?

situation,
one
may be forgiven for saying that
the emergency of the problem is
hardly less than the challenges
presented by the advent of nu¬
and

turnover

cannot pay these increases unless

applicable

are

extended to include

the

fission

the

retarding and

be a supra-marginal producer, pletion rules,
Should such firms withdraw from
Recent government

surely

thorities

international

would also favor

the

effects
of
present
production. Rates on
individual incomes rise too steeply
tax laws

almost

strictly national economic
problem the exigences created by
a

It takes little imag-

see

company which in
the production of other items may

Human Factor Is Future Problem

increase

of deposits

money

...

sistent
rate
such

ination

control,

controls

within

are

Wherever successfully em- rected and as introducing additions
pi ove'k th°y will help to increase to our executive and legislative inoutput per worker. But one must stitutions which would aid
the
not lose sight of another condition
economy
in moving more comwhich invariably sneaks into the
petently toward that goal." Unpicture during conditions of very employment and full employment
high emnloyment.
Full emolov- will find the advocates of rncaswill

per-

jn the bigger firms within a key
industry have not been in exlimitations, to cess
of productivity
increases,

thing.

ment

put picture.

monetary,

there

society, the state, as
conditioning factor in the out-

unfavorable

industries

the

of organized
a

distinction between
time and demand
deposits and between geographic areas. The

questionable

doubt, rising

that

There then remains the question

rather

overcome

in-

economy,

by permitting rates

saver

time deposits to rise,

Farcical Tax Laws

A flexi-

requirement
based
the velocity of de-

would

the

for
on

only to stock market loans. Considering the conditions we are

over

persistent

and

conserve

posits

traffic

the

field,

over

managers

rountine work.

the more or
less immediate years ahead will
be faced with a shortage in the
labor

some¬

high schol degree are upgraded
from routine assignments such as

learn

Shortages

certain

variables.

Selective

the

Basic

country

there

little

brain power. Employees with only

There

women

scientists

than

think

14%

nesses

and

are

Business meanwhile
hard

source.

agricultural

think

thing "evil" about science.

not nearly

are

men

entering the

recently:

drying

trained

are

25%

erouo

demon¬

one

shows

also

survev

scientists

lieving
this

is too

mone-

reserve

authorities have

limited

their

doing a poor
public
relations
job
with
the
youngsters. Twenty-eight per cent
say scientists don't have time to

strated."
In

The

career.

that

reporting Dr.
Shaw's talk in its September, 1953
monthly letter, quoted him as
saying that "the U. S. is using up
we

believe

with

powers

within

areas

permit them to choose science

almost

students

and,

this

cent

per

produce

the

Its

rising

Reserve

tain

Forty-five

storekeeper.

to make certain de-

limited

credit

managed to squeeze

assumption, Dr. Shaw felt,
U. "ST farmers
would "have
to

Federal

The

in between the sales clerk and the

and,

The

the fiscal

such

ductions:

by 1975 and 1950 yields per acre
and rates of consumption. "Under

population.

will

such

is forced

one

our

scientist.

pressure

Looking thusly at the

girls voted

atomic

undoubt-

local and state tax burdens,

teaching followed by the trade of
the mechanic, sales clerk, store¬
keeper and, at the bottom, there
the

the

rising

congestions

largely
for the housewife role. The boys
put medicine as their top choice.
Then
came
chemistry, electrical
engineering, high school science

came

p i y

arrest

will

resources

convemences

students

career

should

The

part of the
human proolem.

over-all

reflect

are

majority

grounds

things:

two

This

costs, not connected
tary problems, and

school students in all parts of the

new

manifestations

University recently un¬
sampling of 15,000 high

many

Purdue

Reserves" of 1931.

primarily

s n a r

24%

and dearer.

scarcer

the

and,

Bank

geometry.

years

However, they will also find that
some

physics;

without

the

ble

edly

of public high schools

the

over

istry

mean

Perhaps

we ought to
dust
Report of the Committee
on Bank Reserves of the
Federal
Reserve System on "Member

off

man-

Natural

to the 23% without chem¬

guage;

Shortage?

not

will

cans

Ap¬
parently these: larger classes, a
lower quality of instruction and
probably some subjects won't be
taught at all. Dr. Handlin points
the 46%

deserve

ness.

talent for

general

What will be the outcome?

items

as
conditioning elethe economic outlook.

pronounced.

which offer today no foreign lan¬

does

science

high of

Resource
'

and

'increase

agement teams will become

Determining Output and Price
is

mentioning
ments

Shortages of

mates

other factors

needed

rate

would

realistic.

seem

the

basis

not

very

eco-

nomic advisability or necessity, a
good case seemingly can be made
for

further

prime rate.
can

increase

the

An equally good case

be made for

higher reward

fuJAA-h fAJnnt
^^ A^ake
^
™
now

ADDarentlv

that'f PPm
of

its

aDDearance"

aaPt?|ntfonsUll t^ue

is n$ desired in times
oros^dtv Asthestorrofdl-

depP0sit insurance
la Pndry has to g0
t
.

before

shows, half the
down the river

somebody will notice

5nmpthin?

i«?

missing

Forms Wm. Norton Co.
NORTH

William
the

BELLMORE,

Norton

securities

N. <Y.

engaging

business

from

in
of-

fices at 2773 Beatrice Lane under
the firm name of William Norton
& Co. He was previously with A.
J. Grayson & Co. and First Investors Corp.

The Commercial and Financial Chronicle
28

Thursday, October 13, 1956

(1660)

keeping

62%

his

little,

Then he told

tax

Mutual

some

bracket; his wife's serious health

problem, the worries that his only
daughter,
now
aged
10, might
someday inherit too much from
him
and
her
grandparents. He

Securities Salesman's Corner
I

JOHN DUTTON

Fund salesmen-who told him they
had

The

of attitude,
going to build a clien¬
upon the premise that

if you are
based

tele
you

sales¬

of competent

success

is primarily

men

one

advisor who will take

are an

approach
to
your
investment requirements,

over-all

client's
■and

that you

will consider every

proposal you make from the view¬
point of what is best for him, you
will establish the confidence that
is

satisfac¬

achieve

necessary

tory results.
These

Only

not idle words.

are

with

with knowledge and

enviable

position

business

productive

and

ethical

highly

conduct

well.

cor¬

idea

owed.

told

holding

their

and

realization
all

will

When

this

finished

said

"You

me,

perfect job of estate

off

his

people had one
PRODUCT,

you

THE

FOR

JOB

BEST

Fund

Mutual

all

answer

the

needs

and

present,

split

hair

INDICATED

SETTING

are

even
(as to what is best
what is not quite the best)

pretty
and

the

for

/actor

client

often

your

strong

decision

making.

called

around

ended

tired

for

and

health,

his

working

home

finally

midnight.

near

his

p.m.

He told

becoming

hard

and

the

from

someone

see"

typewritten
had made

FOR

USES

people spent three

hours

listening to this man's in¬
and highly intricate and
personal problem. None of them
let him open up his mind
(and
his
hopes and plans).
None of
volved

the

man's

this

estate

they wanted to do
turn

his

over

that

page

all

and

to let him

was

assets

them

business
YOU.

they could SELL HIM A TRUST.

for

other

three

dustry averages and reflect the
operations of marginal and prof¬

nvesiment and

For
ices

take

slice

Growth Outlook

in¬

but

the

average

and since increased output
taking the form of higher qual¬
ity and additional service but not

transported

necessarily

fallen

come

greater bulk or in¬
numbers.
Rail
carriers

creased

tiave

this

felt

law

transport growth which
cial

truck

carriers

retarded
commer¬

may

now

1953-4

per

while

power

levels

war

and

some

averages;
from

loading
year

nine ton load in

only

was

1944-46

miles

has increased

above

tonnage
unit has
of

peak

operated

per

levels

over war

but has remained stable since 1950

55,000.

Moderate

permitted
by
highway
«afety codes; and improvements in
terminal

facilities

already

are

placement

of the last

expense

Thus profit margins in the
future give every promise of
being
moderate

plication

in the past.

depend

chiefly
upon
ebility of the industry to achieve
the volume needed for mechaniza¬
tion.

factors

load

average

carried,
ton-miles

trip-distance,

average

efficiency

car-day
the
record
shows
«teady progress rounding out to a
plateau level which apparently

per

^reflects what the

out

^lighway

industry

basic

the

traffic

volumes

limits

and

technology
present
needs.

the average haul which in

averaged 241 miles

de¬

commercial

transport

within

can

day
Thus

1953-4

have

been

margins, expressed

percentage of operating rev¬
after

enues

In terms of such basic

velop

These profit
as

they

deducting

operating
expenses but before non-operating
items and income taxes, have run
to about

both

five cents

before

and

the

after

dollar,

the

margins

profit

case,

are

though

remunerative
runs

These

high-low range of 6.5%

to 3.5%.

*aigher than the 1944-46 average;
SELECTED

FINANCIAL

DATA

manual

unmistakable

"an

of¬

The record shows that

firms

somewhat

are

profitable

currently

terms

operating margins than the indus¬

generally,

try
the

seven

has

that
been

only

one

flop

bar¬

guarded

access,

the

resources

capital

market

should

made

avail¬

able

well-established

larger

firms showing a consistent recof

ord

annual

the

strong management and

profit
larly

particu¬

performance,

firm

is operating in

area

which

through

merger

tion

growth

and consolida¬

leading to a
integrated pattern of op¬

erations, improvement in
terminal

facilities

shippers

and

im¬

for

and

balanced

traffic flow.
The

number

enormous

the ICC views in

favorable terms

and

for

which

the

ket in

the

Three

companies show net

oper¬

main

in¬

corporate

strumentality with its public

strong working capital
up.

un¬

dercapitalized
pigmy
undertak¬
ings in almost every region cer¬
tainly creates a potential profit to
be
achieved in
a
well-designed
campaign of consolidation which

erate and

position has been built

offering

service

proved

use

dividend payout is concerned
though earnings have been mod¬
a

Besides—these

seven

firms

now

listed in Standard and Poor's flo¬
are

course

1939-1955—PUBLIC

in¬

tations

are

CORPORATIONS

Year of

indicated
IN

elsewhere

MOTOR

Price

$2.25

fJ. S. Truck Lines

1939

10.00

Pacific Intermt. Express
1947
JKcLean Trucking
___1952
Cons. Frf»i^t'vqVS
___1QC»1

31.9

44.2

4.50

15.1

19.5

21.0

Motor

Freight—1950
Oenver-Chicago Trucking __1951
^Approximate.

First

The

Bankers

Boston

and

Corp.

Forgan & Co. are joint
managers of the group
that of¬
Glore,
fered

(Oct. 17)

400,000

Commonwealth

Edison

yesterday

Co.

4.64%

preferred

cumulative

share). No
other preferred stock is outstand¬

stock at par

($100

per

$600,000,000

mar¬

equity participations is the

precondition.

Any increase

the

over

four-year period 1956-59, of which

$275,000,000
generating

transmission

electric

for

for electric
$310,000,000

will be
facilities,

dis¬

and

tribution

facilities, and $15,000,000
general plant.
The new preferred will be re¬
deemable at prices ranging from
$1Q£V2 until Nov. 1, 1964 at $102
on or after Nov.
1, 1973.

for

Edison

Commonwealth

en¬

gaged in the production, purchase*
transmission, distribution and sale
electricity. The territory served

by the company and its affiliates

approximately
11,000
miles with an estimated
population of 6,100,000. including
Chicago, which has an area of
about 221 square miles and an es¬
timated
population of 3,700,000,
The company, at July 31, 1956, had
approximately 1,873,000 custom¬
covers

square

ers.

For

the

months

ended

July

31, 1956, gross income of the

com¬

amounted to $64,189,203 and
net income to $48,830,492, equal to
$2.73 per common share.
This
compares
with gross income of
pany

$60,406,971 and net income of $46,460,734, or $2,262 per share, for
calendar

the

year

1955.

Named Directors
Holly Corporation has announced
the
its

addition
board

two

directors

fill

existing vacan¬
cies, Thomas J. Boodell and Fred
W. Fairman, Jr.f
Fairman is a Chicago resi¬
partner of Bache & Co., in¬
vestment brokers, and Mr. Boodell
Mr.

dent

in traffic volume would widen the

possibilities for working out

firm of

partner irT the Chicago law
Nelson, Boodell & Will.

balanced traffic flows and for de¬

intensive

veloping

terminal

facilities

same

time

would

make

the

avail¬

able the funds for needed terminal
construction
sition.

equipment acqui¬

The resultant

in service would

With

use

while- at

improvement

improve shipper

Eastman, Dillon

CARLISLE, Pa.—Eastman Dil¬
lon, Union Securities & Co., 100
West High Street, members of the
New

York

and

other

leading

ex¬

changes, announce that Cole B.
Price, Jr., is now associated with
them as a registered representa¬

following and loyalty.

FREIGHT

CARRIER

New Walston Branch

INDUSTRY

1946

1950

1954

1955

1954

1955

17.9

19.6

35.3

47.9

49.5

97.08%

100.43%

17.0

14.9

22.5

35.8

Offering

9.1

16.3

Dividends

-Earnings
1953

0.02

1954

0.33

-Prire—

1955

1953

1954

1955

.13

nil

1953

92.5

89.9

94.1

2.33

2.22

1.20

1.17

1.30

1.35

.55

.58

.64

3.45

40.9

1.29

1.93

.30

.40

sy4

Co.,

1954

5y2

14%

Inc.,

members

branch

office

842

37.4

36.7

95.17

96.44

1.42

1.15

.60

Holmes S. Gangewer.

19.7

24.7

29.0

95.43

95.42

2.41

1.81

1.10

1.00

ny4

13%

Andrew

11.75

17.8

19.4

20.8

91.94

93.64

2.19

1.74

1.00

11%

12 y2

13 *2

new

and Moody's.

Hamilton,

Street under the management of

28.7

7y4

New

i3y4

6.25

.67 y2

the

York Stock Exchange, have opened

11.75

SOURCE: Standard & Poor's

client's

your

ALLENTOWN, Pa.—Walston &
-Cost/Oprtg. Ratio-

Year

1945

interstate

put

tive.

figures

Associated Transport

3.20*

own

and

Offered by

Gross Revenues (Million $ >-

Public Offering

your

4.64% Preferred Stock

feasible

far

FOR

stick

Just

AND

Commonwealth Edison

though

the

since capi¬

only to

But

nar¬

regulatory policy regards
seven
cents as target adequacy. of around 8% or better. Yet only
Net profit margins for 1939-41 av¬ one of the flotations, Pacific Inerage about 5%, the average for termountain
Express, has made a
the 10 postwar years through to
marked success and has emerged
1955 was 4.7%
with a tendency
for margins to improve through to with a striking record of growth
1950
and
to
deteriorate
since and profit making.
a

the

issue should be of¬
public at a price that

new

fered to the

payments

ating profit margins during 1954-5

30%

was some

fers: any

We would also echo

which

advice

war

while

within

As the
industry
perform¬

gain."

years.

available and for their further ap¬

the

dividends.

formal

in Table I.

enthusiasm."

rather than
Routing earn¬
ings via executive salaries per¬
mits big tax savings.
But in any

bonus

hauling service afforded by
the industry competes at every
ment.
stage with private carriage free
from official regulation and car¬
Bargain Issue Recommended
cettled technology giving promise riage restrictions and with rail
(3) Caution would also be in¬
carrier
or showing indications of no un¬
competition fighting for
dicated by the fate of the some 10
usual development. Technological its very life.
The vigor of this
underwritings
which
have
oc¬
far
improvement in power units, now competition has thus
pre¬
curred in the history of the in¬
both
rail
and
that they are dieselized, will be vented
highway
dustry.
Relevant data for the
relatively small; improvements in carriers from recouping through
seven
which
are
reported
in
irailer design
have raised ton¬ rate increases the great increase
Standard and Poor's are set forth
nage to the maximum loads gen¬ in operating costs and plant re¬
erally

the

of the

would

thircL
operating incomes.
A
five cent operating margin magni¬
fies into a 15% return on invest¬

The

indifferently.

asserted,

executive salaries

the form

Stability

fared

which

concerns

"market
outstanding shares of
motor carrier companies has not
been such as to create widespread

in the firm

uled for reinvestment

tal investment

Profit

has

This may be due to a
tendency for the smaller firms
which, though organized in cor¬
porate form, are dominated by
owner-manager interests, to take
the profits which are not sched¬

row

at about

facing for the first time.
(2) There appears little oppor¬
tunity here for a "strike" or for
tiny spectacular growth in earn¬
ings or dividends. Truck haulers
^provide a stable service with a

ance

segments of the industry.
The larger firms tend to be more

Highway Freight Haulers

growing

financial manual for

profitable.

page

have

itable

jrom

everyone

for

imately

Continued

life in¬

plenty of

there is

—

li¬

estate

to sell

ing, and the new preferred stock
being sold represents the com¬
pany's first non-convertible pre¬
ferred stock financing.
Net proceeds from the sale of
time in a study of the facts and this new
preferred will be added
circumstances now before us. Then to working capital to be used tolet us sit down again, and possibly
ward_ additions to the company's
several
times
more,
with your electric
utility
properties.
The
lawyer if necessary, and a good present construction program now
accountant, and I will sit at your calls for expenditures of approx¬

quick "look

too

surance

real

one

ESTATE.

None of these

the temptation
when the odds

have

welfare first.

has given me this
an
evening appointment with a
thoughts such as doctor client with whom I had time, and this interest. You are
statements of done business over a
approaching this problem of mine
three-year
policy, in articles and studies on
them said to him, "If it is a trust
period. I knew that I was one of from my side of the desk. Now
salesmanship, I and you hear them several
investment
men
with look at these." And with this he you need for all of your estate let
in
speeches at conventions and whom he did business. One
us
use it;
if you should use Mu¬
day pulled several letters out of his
other places where securities men
They were from trust de¬ tual Funds, change or add to your
he said to me, "1 wish I could find files.
congregate. It is not an easy thing someone that would
help me set partments of banks and every one insurance, or realign your real
to do.
Personal interest and the
estate and cash, governments, and
up
my
estate."
I arranged this was written in a terse, concise
•desire to place a commission ahead
You could just feel the stocks, let us do that.
But by all
conference at his office and the manner.
of
a
client's
welfare
is
always
out at you means, let us first spend some
first meeting lasted three hours. idea jumping right
expressed

need

don't

cense

investor,

METHODS OF INVESTING AND

first person that

When you

Funds, bonds, stocks,

any

EACH OF THESE WORTHWHILE

too often you see

these

Mutual

job such

this has been done?

sell

THEIR

think any¬
this man's in¬

you

have

vestment account after

as¬

will

else

one

family."
pay? Do

business

ONLY

discus¬
are

no testamentary trust,
other kind of trust, and no
over-all insurance plan. There is
no perfect investment. There ARE

gave me

sion

needed

get through, it will be
thing we can do for you

best

copies for study. He
Confidence
gave me a list of all his savings
commercial accounts,
It is illustrative of the power of account s,
government
bonds,
municipal
a constructive attitude toward the
client to relate the following in¬ bonds, and stocks, with costs and
cident.
One of my earliest ex¬ date of purchase thereon.
periences
in using
the "Client
First" technique had to do with

Does it

and

will

wife's

his

and

and your

All

There
will

that

He went over

joint tenancies.

his

NOT
HIM.

expected
told me of

value.

came

SELL

his

the

and

cost

Then

They had the

shares.

these

All
—

soon

which

the

men.

sell

and

sets.

estate

they
some

planning was to buy more insur¬

what it owned and

real

poration and

when

All

him

was

too.

accomplish
ance

well.

broad properties he expected to sell

securities, is in an

list of available

The se¬
curities salesman who is equipped

Fund

answers,

let

advisor and consult¬
-do this job so that

your

sell

the insurance

told

insurance

wife's

be so.

need not

But this

ARTICLE IV

with

Mutual

me a

ance

Analytical, Advisory Method of
Security Salesmanship

The

wanted

list of all of his insur¬
policies, with cash values,
ownership stated, and his

gave

and

ant

answers.

the

all

side

office

sentative.

associated
as

Harry Mowith

registered

the

repre¬

Volume

184

Number

5578

The Commercial and Financial Chronicle

(1661)

phrey, Inc., Union Trust Building,
Pittsburgh 19, Pa.

Forty-Fifth Annual Convention of

Investment Bankers Association of America

the

special

return

sengers

Meeting to be held

period November 25-November
officers

the

Hollywood, Fla., during the

be voted

planned

trip. > Pittsburgh pas¬
however, travel on

York

special

page

News About Banks and Bankers

may,

New

from

for

train

Washington and there transfer to

Carlisle, Pa. and the Dauphin De¬

The

regular trans

New slate of

30.

car

Continued

posit

other affiliates

burgh.

on.

planes for Pitts¬

Railroad tickets should be

purchased from local ticket agents.
Chicago Special Train
Detroit-St.

Louis

Special

Trust

burg, Pa.,

Company

rejected

was

Harris-

Sept. 13
by the State Banking Department,
according to Associated Press ad¬
on

vices
Cars

in
the
Philadelphia "In¬
quirer" of Sept. 14 from which we

special train from Chicago to
Hollywood, with special cars from

also quote the

Detroit

and

tached

Secretary, s^id
disapproved because 'there is

St.

Louis

there

ficient reservations.

at¬

be
suf¬

are

Its route will

be New York Central

will

Cincinnati,

operated provided

Chicago

Florida

and

Southern

East

Coast

Railway
from
Jacksonville 1 to
Hollywood. The route of the De¬
troit
Robert

and

St.

apparent
ment of

Louis

cars

Cin¬

Myers,

State Banking
the merger was

need

Bankers Asociation

Craft

Andrew

Baird

for

the

exception

St.

Louis cars,

low)

the

—

tional Bank of

(with

interest

for which

and
be¬

see

Chicago, Dearborn,

Clark

applications
ly.

Wendt

Jackson,

William

Jr.

Morton

Nov.

W. Carroll Mead

prior to 5

1956

Annual

Convention

will

woman

Hollywood Beach Hotel, Hol¬

lywood,
Florida,
Sunday, Nov. 25,
Friday, Nov. 30.

beginning
and

ending

will

Municipal

Sunday afternoon. There
be

convention

sessions

each

will
of

the

with

above

and

Past

the

committees

payable to the Associa¬

their wives.

with

the

sessions
In

addition

the

Friday.
President George

New

The

Railroad

Exchange

Garner,

President

the -Bethlehem

Corp.
Eugene E. Trefethen, Jr., Execu¬

tive

Vice-President

the Kaiser

Industries

Corp.
It is hoped very much that each
member organization will impress
its

upon

representatives

the

im¬

portance of attending the conven¬
tion

sessions.

between

mond,
and

Ticket

1956-57.

This

will

ticket

at the convention session

Nov. 29 and will be

follows:

For President—Robert H.

Craft,
The Chase Manhattan Bank, N. Y.
For Vice-Presidents
Andrew
—

M. Baird, A. G. Becker & Co., Inc.,

Chicago; William S. Hughes, Wagenseller &
Durst, Inc., Los An¬
geles;, William
C.
Jackson, Jr.,
First

Southwest

Co.,

Dallas;

ing

the

bedrooms will

Line

be¬

Railway

and

going

for

the

tween

New

should
H.

will

Lines

be¬

Miami

via

National

and

made

Wall

the

flights

through

Street,

railroad

Harold

New

present

Beach

Hotel

the

during

market

BEACH, Calif.
has

been

added

staff of McCormick and

Security

—

Building.

the

Special

will

reserva¬

was

for¬

Pennsylvania

made

gate,

reservations

through
Hulme,

ANGELES, Calif.—Phillip

now

3932

with

California

Wilshire

In¬

Boulevard.

Joins E. T. Cronin
(Special to The Financial Chronicle)

Lowrie

Applegate &

AppleHum¬

Na¬

outstanding.
stock

National

Ga.

have

capital of

been

At¬

announced

capital
the

each

stock

$35

rate

share,

per

new

for

held.
Subscription
expire on Oct. 15. A
underwriters is headed

rights

will

The

Robinson-Humphrey Co.,
Atlanta; Merrill Lynch.
Pierce, Fenner & Beane of New
York and Courts & Co., Atlanta.
si:

Athens, Ga. increased its capi¬

tal

from

$100,000 to $300,000

result of

stock dividend of

$200,-

000.

crease

the

would

capital stock of $1,~
$3,470,000

additional

transferred

from

un¬

divided profits to the surplus

ac¬

count.

Upon completion of the
increase, the bank would have
2,677,500 shares of stock outstand¬
ing.
*.

The

Union

Bank

Los

shareholders

Angeles,
to

Trust

Cal.,
of

Oct.

record

Co.

offering
5

addi¬

114,000 shares of $10 par
capital stock at $35 a share.

value

Stockholders
subscribe

will

for

one

each

five

Oct.

26.

entitled
share

new

to
for

held.

Rights expire on
investment banking

syndicate headed by Blyth & Co.,
Inc., has agreed to purchase any
unsubscribed

from

the

bank. The

$3,990,000 to be realized!
through the sale of the new shares
will

be
added
to
capital funds:
$1,140,000 to the capital stock ac¬
count

and
$2,850,000 to surplus.
Upon completion of the financing,
the capital funds account will be:

capital
and

stock;

capital

value

par

$11,785,000
profits $1,746,128.

undivided

Total

$10

surplus
funds

will

371,128 and book value

$20,-

shart?

per

will be $29.78.
*

Plans

for

•••■•*

Organized

the

development
bank in Miami, Florida,

new

Bank

the

for

the

issuance
Miami

of
are

National

the

Comptroller of the
Currency on Sept. 18. The Treas¬
ury Department circular of Sept.
24, which reports the charter's is¬
suance, indicates that the bank's
capital 'is fixed at $900,000, and
surplus at $1,300,000. The pri¬
mary organization consists of
Louis

Goldman,
*

addition

President,

Cashier.

$250,000

the

National

Longview, Texas, by the
of new stock,

increased

bank's

the

tive Oct.

1.
if

for

Plans
stock

the

dividend

capital

payment
for

and

increasing

surplus

and

the

have

in
in

bank

1914,
the

from

grown

$157,000,000

000

end

the

total

last

assets

ten

the

years

approximately

1946

$321,000,-

1955.

Sept. 30, 1956, total resources
reported
at
$331,783,253.
7/

As
of

Sept.

were

the Comptroller
Currency
approved
a

the

certificate making effec¬
tive at the close of business Sept.
merger

the

merger

Merchants

the

National

Farmers

Bank

common

Angeles, Cal., with

capital
from $750,000 to $1,000,000, effec¬

the

in¬

$32,-

5% of the 2,550,000
presently outstanding, or
127,500 shares of the par value of;
$12 each, will amount to an in¬

684,000
As of Sept. 18 the National Bank

$30,600,000 to

will

for

The

being

tional

Bank

the

rights

♦

increase the

First

the

$9,000,000,

First

into

National

geles, with

000,000.

Bank

The merger

Los

was

under the charter and

Los Angeles.

Security-"

An¬

stock of $50,-

common

Security-First

Los

stock

effected

title

National

of the

Bank

At the effective date

of the
merger the
latter had a
capital stock of $59,000,000 in 4,720,000 shares of common stock,
par $12.50 each; surplus of $59,-

000,000

and

undivided

profits

not

latter will continue to operate the
102 branches which have already

ANGELES, Calif.—George

Whitson has joined the s'.aff of

Edward
South

Cronin

Company, 548

Spring Street.

■

from

including
mately

$70,000,000

nounced

to
$87,000,000,

$75,-

approxi¬

reserves,

were

an¬

less

been

than

$54,770,077.

operation

since

The

Feb.

25,'

1927.

Oct. 9 by Karl Hoblit-

zelle, Chairman of the Board, and
Florence, President of the

Form Great Southern Co.

Fred F.
bank.-

LOS

should

First

000,000, and its total capital funds,

(Special to The Financial Chronicle)

vestors,

Rail¬

be attached

from

Issu¬
on

Texas,

Calif. Investors Add

Pittsburgh to Washing¬

ton, where it will

additional

capital

dend,

time,

offering to its shareholders
of record Sept. 25 to subscribe to
200,000 shares (par $10 per share)

Company,

oper¬

car

equivalent

Republic National Bank of Dallas,

Mael

Car

sufficient

are

special

via

Plans
1he

the

merly with California Investors.

LOS

has

Leo

value

130,000 and surplus from $39,400,000 to $42,870,000. The stock divi¬

named

was

sale of that amount

Such reservations

Pittsburgh

same

tional.

wood.

tions,

Auditor

York

issu¬

dividend

of the stock would be

Assistant

and D. B. Hudson

With McCormick Co.

there

Sept.
McDonnell,

capital of the Longview

representa¬

according

the

.■/

for

the

Na¬

made

Gresoski

Bank

be arranged as promptly
possible after arrival at Holly¬

Pullman

con¬

be $40 per person.

Air

Albright

registration fee for the

arranged
and

N. Y.

the New York special train.

The

Frank

indicated

Sherburne, Bacon, Whipple

Co.,

should

ated

Fee

been
York

First

for

be made

may

Douglas DC-7B equip¬

have

William
W.

Assis¬

named

announcement

may

depar.ure

Transportation

ment,

been

Inc.,

trip. Pullman

approximately $7,000,000.

ance

530,000."

Byerly and Joseph W.

have

charter

LONG

Hollywood

will

road from

Registration

Special section flights, using the
latest type

from

President.

re¬

the convention.

have made arrangements for space
on the regular trains.
Air

s;i

Comptrollers

and

regular trains
to

the

brought
capital

Minn,

tional Bank in St. Louis,

314

Hollywood Beach Hotel
the convention and who

train

special

made

the

Baltimore; William H. Morton, W.
H. Morton & Co., Inc., N. Y.
Convention

Inc.,

(Special to The Financial Chronicle)

who

Reservations

Rockefeller, Jr.,
Dominick, 14 Wall
York 5,
N. Y., is

New

Hollywood

tant

be available.

prior

the

National

Rochester

Lederle

2, Mo. Draw¬

Arrangements

return

has

Northwestern

James

should

at Hollywood through the railroad
representatives who will be pres¬

the return.

Pullman reservations for the

through

made

Eastern

the

Avery

Carroll Mead, Mead, Miller & Co.,

vention

present

creased

stock

$250,000

ifi

Cars—Reser¬

going trip

Hollywood—or they

Chairman.

tives

the

reservations

Rich¬

going trip
should be made through the New
York
Transportation Committee,

trip

for

the

;

new

increase

lanta,

No special train has been sched¬

uled

and

$250,000 to $500,000. The enlarged
capital became effective Sep. 17.

Sons,

sf.

Bank

bed¬

compartments,

rooms,

and

Pullman Reservations—Pullman

Street,

sale

about

Drawing
and

Airlines.

one

which

the

Theis

bert

sections

Reservations

should

the

banking

.:,

bank's

The

available.

Fourth St., St. Louis

Holly¬
anticipated that there

two

trip and

turn

the

Penobscot

Mich.

Special

for

during
both

Jacksonville,

Coast

wood.

Railroad

and

Coast

East

York

Jacksonville

the convention the Regular Ticket
voted

between

will

Co.,

ent at the

Pennsylvania

New

Atlantic

Governors, pur¬
suant to Article Six, Section 7, of
the
Constitution, will submit to
for

Florida

hotel

Train

train

Washington

Dominick

Board

Washington,

Regular
The

the

tween Richmond and

Steel

Friday,

upon

$12 each, to be
stock

sliares

be made through Harry Ine s, Al¬

con¬

and

Special

will

between

the International Finance Corp.
Arthur B. Homer, President

made

Transportation

York

Armstrong, Chairman
and

the form for

route

directions

Securities

vations

at the

rooms

hotels should

Convention

for

will
Louis

St.

Return

through the Association's office in

business

Commission.
Robert

Car—Reserva¬

compartments

rooms

Arrangements

All reservations for

be:

will

J. Sinclair

Carlisle

group

Hotel

W. Davis, the speakers at the con¬
vention

for

hotel

reservations.

registration
meeting of the incoming Board vention
of Governors, and possibly certain- reservations.
no

should

form

meetings,
are
planned

Checks

fees

registration and

Washington

committee

excep¬

tion and forwarded to its office in

that

exception

Special

don, Aldinger &
Bldg., Detroit 26,

Presidents of the As¬

made

rooms,

registration

convention

the

and

will
hold
meetings
the convention and will
present
their annual reports
at
With

noted
at

covering

Association

going trip should be
through Ralph Fordon, For-

during

time.

exception

sociation

the

conven¬

"Attendance

Washington

and

man

Convention," and with the

convention

many

each

the

under

Monday

meetings

Governors

national

tion

registered for the

addition

morning
from
through
Thursday.
In
there

apply

tion of

The first business session of the
convention

Board

distributed

each

tions for the

held

p.m.

23.

Detroit

Association

received prompt¬

are

Otherwise they may be picked
at
the office of ° George B.

127,500 additional

one

Sts., Chicago 90,

Pullman tickets will be mailed if

then

of stock of the par

amount

Detroit

effective

Comptroller

The proposals provide for
ance

basis

Illinois.

will

'would not

merger

best

Reser¬

trip

going

be
made
through
Wendt, The First Na¬

Monroe

Forum

will

the

s':

should

George

The

stock

approval by the
the Currency.

banking structure of Cumberland

Chicago Special Train

cash

on
Nov. 5, at no cost to them.
This stock dividend would have a

Central System.

William S. Hughes

pay

opposed
the
merger
at
public
hearings held by the Department.
"The Department's opinion said

public

the

benefit

will

pro. rata to shareholders of record

cinnati will likewise be New York

vations

the

establish¬

in Carlisle.'

and

shareholders

the

banks

Pullman Reservations

the

.".

and

wholly owned and
for

County.'"

H.
0*

for

branch

Corporation

trust

completion of the increase in capi¬

"The. Cumberland-Perry County

System from

Cincinnati,

Railway from Cincinnati to Jack¬
sonville,

"Robert

the

dividend of $2,000,000 to the bank.
Issuance of the stock dividend and
tal

following—

Howard

held

Announcement

the

ATLANTA, Ga.
Co. has

been

—

Great South¬

formed

with of¬

planned increase followed the Oct.

ern

fices at 756 West Peachtree Street,

meeting of the bank's directors,
which

time

was

voted

Northwest.

Thomas W. Jackson is

submit the

holders
Nov.

effective

proposals to the share¬
at
a
special meeting on
Simultaneously with the
date

the

proposals,

President; C. E. Waller, Vice-Pres¬

ident;

and

Doris L.

Waller,

retary and Treasurer.

Sec¬

The Commercial and Financial Chronicle

(1662)

Continued

jrom

of speculative excess, or gambling

page

mania,

in this

looked upon

were

which

country

The American Securities

Industry
Acting Upon It

And Forces

ganized labor to get from the rest
community increased wages
regard to
productivity.
Inflation nowadays is a more seri¬

harmful

of the

without

see.

economic

ous

than

disease

ever,

because a larger proportion of the
population are now savers through
pension funds and life insurance
than ever before in our history,

the

and

annuitants

number

from pension plans and
Social Security is constantly in¬
creasing. The market for stocks
in
inflationary
times
properly
evaluates corporate earnings and
among us

dividends at

lower multiple than

in times of general price

stability.
Deflation is also bad; although
it benefits many owners of debt
at the expense of owners of prop¬
erty, it also creates conditions un¬
der
which many borrowers
can
no
longer meet their obligations,
thereby harming owners of debt
as well.
Our experience with the
disastrous effects of panicky de¬
flation
in
the
early, 1930's has
strongly colored all our economic
activities in this country from that
day to this, and now leads many
responsible people to believe that
a
a

mild and continuous inflation is
desirable alternative to
of

risk

the

even

deflation.

I've described

number of

eco¬

nomically harmful environmental
factors

or
trends, what are some
ones?
In an overall sense

good

anything

stimulates

that

enter¬

prise and invention is good. Com¬

petition in its various forms is the
most

powerful

stimulant of all—

and

incentives

adequate

course

commercial

for

rewards

risk-taking

adventure

are

effects

little

that financial

the

and is

the

ject to

it acts

cause

fer

tax.

capital gains tax be¬
as a high rate trans¬

economically bad
mobility of
capital. Most capital gains

things
in

inflation

illusory, but even if
so, it is obviously
not good for a growing country to
penalize capital flexibility. To il¬
lustrate this penalty, or lockingup effect, let's take the case of a
who

man

not

were

long

his

it at 65 he has 40 points of
gain and may have ten points of
tax liability. Thus the act of sell¬
ing out causes him to incur a tax
sells

liability equal to 15% of his capi¬
tal! He can avoid tax indefinitely
simply by doing nothing—and yet
some
politicians call the capital

that aside from the matter of

say
car¬

rying out routine transactions
think

than

about

taxes.

Our

ates

widely
mainly for

yond

anything
income

from

fluctu¬

year

else
year,

reasons
entirely be¬
control, and the punitive

our

rates

our

present highly pro¬
income tax structure

gressive
make it

extremely difficult for

earning
over

given amount of

period of

years

man

money

in irregular

amounts must pay more taxes than
a

man

earning the

regular

annual

same

amount

instalments—

from

revenues

would

the

greatly

ness!

tax.

benefit

think

should

iness.

The mention of

subject

that it
our

bought

Bank

sense

specta¬

was

country.

the
the

bought
York

from
stock

which

first

exist

which

the

energies of productive people

are

better rewarded
by seeking means
of tax avoidance than
by further
creative

effort, and yet that's what

happens when
and

under

rates exceed 50%—

this

country's present
.tax structure rates go up to 90%.
In the State of New York the com¬
bined rate of tax
of

earned

income

the last dollar

leaves only 6.3

cents.
Our

the
in

was

State

Transfer Rate Tax

men, and to

the

speculators

was

and

Erie

there is

cially

one

tax

concerned

that

with,

are

spe¬

and

the

New

Canal,

accel¬

evidence

level

Holland

who, lured by gener¬
returns, bought the first se¬
in

many

railroads.

our

Unhappily,
times

there

certain

Today,

think it safe to say
thoughtful person in

I
no

industry who would wish to
back to pre-SEC days. Paren¬

self-regulation of the
which are
organized exchanges
is in many respects sterner than
that imposed by government.
Having talked about some of the
problems which we have faced,
and having given you a general
description of what we do and our
thetically,

sectors

the industry

members

relations with government, I think
it is time for us to take stock of

present position, and then look

our

at the future.

our

been

historv

boldness, imagination and
spirit of adventure, which provide
the creative aspects of
specula¬
tion, have been obscurer! bv greed
and the

gambbng fever that

our

population.

normal

the

been

At these times

securities

periods

reconstruction.

func¬

markets

business

and

have been

nqrts

many

price-making

impaired,

ful intervals

seems

have

invariably

speculative

ex¬

followed bv pain¬

collapse and slow
In

this

economy

following:
The passage of the Federal Re¬
Act in 1913, which has

serve
us

The

panic of 1929-32 which has
deep and abiding dread

us a

deflation.

Passage of the Securities and
Exchange Acts of 1933 and 1934
which provided for regulation of
the exchanges and the issuance of
securities.

new

The 1934 Act
eral

Reserve

in the

■

•

curities.

social

this in¬

sense

creasing property " ownership is a
strong stabilizing factor for the
long term. In an economi.c sense,
the increasing savings habits
oc
our people
mean, I think, that the
capital required to finance fur¬

incentives

ate

maintained.

are

The

regula

buying

Banking
which

year

from

1907, 1920 and
recentlv, in certain

sectors of

our
country, a rampant
speculation in uranium shares was

progress.

Needless

sponsible el°ments in
have steadily fought
the

unscrupulous

others

who

paigns

are

sav,

promoters,

have

catered

Act

the

removed-.the

urge.

the

Moreover,

time, vigorous

cam¬

in progress embodying

such slogans

"investigate before

The

action

the

—thus

making

able"

for

the

even

servative
The

stocks

gen¬

they

all,

after

nut,

contribute

the

SJLcture

basic

confidence

our

they

are

the

hand

community

This is the sub¬
democracy; and hand-Liis

with

called

capable.

stance of

the

what

economic

mignt

democracy

represented by tfre„ fact that in
country, as in no other, any
may
have access, throug.i

dise, the nation s common stocks.
these considerations

Therefore,

eminently practical.

are

And now, to conclude our effort
at

perspective-seeking, I think I
possibly best summar.ze the
securities industry by saying that
can

our

the

deal

nating
in

country

with

people

constitute
the

fasci¬

and abroad, and
whom we deal

ele¬

constructive

the

who

which
and

bread cross-section of

countrys

ments.

full

of economic activity

range

this

the

Finally, we come to tne over¬
riding consideration of war and
peace. War is the great destroyer
of capital and of social equilib¬
rium.
Fortunately, aitnougn we

the

covers

ownership in the nation's
productive machinery.
ness, to

with

merchandise

the facilities of the securities busi¬

Continued

minds

most

it, it is the n o t in¬
teresting business in tne v/orld.

are

from

page

The State of Trade and Industry
According
States

the

York

contract

terms

strike

rated

workers

—

and

the

mills

are

an
;

investors.
of

the

tax

laws

pressure

plate producers, concludes "The Iron Age."

industry last week,

22.4%

increase in

tians. for-United States plants the past weekr compared with 59,351
the week before. In'ihe same period of 1955 output totaled 101,581
units.
"l
'
V- •
^
,

various times
to

ance

permit the issu¬

corporate employees of

called

"restricted

stock

thereby giving them

so-

options,"
direct in¬

other

activities

sulting in
the

which

rapid

nation's

host

are

re¬

broadening

list

tion

you

business

helped

the

Here I

nation

progressively bet¬
Morp and more em¬
phasis is being placed on educa¬
tion, and this education, in turn,
a

more,

electorate,

informed and alert

less

subject

cians than in the past.
has

provided

reckless

idled

consist

184,962 new 1957 model cars pro¬
102,255 by Ford Motor Co., 40,760 by

23,652

Corp.,

Chrysler

Corp.

and

18,295

the

politi¬

Moreover,
means

producer

leading

29,000

car

held to some

the

industry.

This week "Ward's"

said, will find all car producers except¬
ing Packard in production of the 1957 cars. The new Packards
scheduled to enter

production in December.

Truck assemblies in the United States last week totaled

trucks

against

Thus

becoming

means

far

Motors

The

was

have

Future

ter educated.

General

better take account

with,

for

our

general consideration^:

begin

reemployment

delaying

directly

customers, and
enlarge the demand

had

are

the

that

last week was Ford Motor Co. with
completions scheduled.
General Motors Corp.
i?t,400 as Pontiac,, Oldsmobile and Buick assem¬
bled the last of their 1956 models, ending the 1956 model year

all

see

our

The

are

thus

stated

remaining producers.

merchandise in which

some

duced

are

think

thus

"Ward's"

But what of the future?

t^at new m^Hel
October produc¬

for

can

and

are

workers.

nearly

readily
these
developments are
or
indirectly favorable

for

schedules

cautioned, however,
eating a deep hole in

agency

holders

stocks.
As

statistical

The

production problems

terest in the market price of their

employees' securities, plus

production pushed cumulative assembly of tne 1957 model cars
to the 185,000-unit mark.
"Ward's Automotive
Reports" counted 72.664 car comp^e-

aad

savers

automotive

the

from Congressmen and other gov¬
something about it. The proposed con¬
United States fleet of large oil tankers compounds

feeling

the worries of

become

;

situation

people -to

steel

creating

class of

Amendment

The

will

and carry over into first quarter of 1957.
in plates and structurals is so desperate that

quarter

struction

con¬

1950, provid¬
ing for pension funds for hourly

indirect

journal, it looks as though United
progressively tighter through

trade

this

demand

steel

fourth

ernment

settlement of

new

the

"respect¬
most

buy stocks" and the like.
periods

perform " well

of investors.

types

you

these

gives
people
tne
moral
population* as a whole to strength to resist expenditure and
in
the
mouern save,
and savings are the mer¬
world, is our high (tnough ad¬ chandise with
which
we
deal.
mittedly not perfect) degree of Moreover, confidence is the most
social
fluidity,
which
permits powerful determinant of the price
men of ability, regardless of Lie r
which the marketplace accords to
social origin, to rise in tne world the
largest sector of our mercnanof

blandishments

long time

that

Legislature in 1950 authorizing life
insurance companies to buy stocks

invest," "hold savings before

These considerations

eral nature may seem to you to

confidence, -and

same

New

you

For

and,

mil¬

itary and financial aid to those
peoples all' over the free wor.d

social stability, and in the aoility

banks

re¬

and

machine,

who need it.

addition, one of Lie most
powerful factors": fh our overall

underwriting business
(except for prime municipal cred¬
its).

our

industry
the tipsters,

military

the other, furnishing botn

or carry¬

deal.

1903,

effective

high-flown,

the

occurred

hand maintaining a large and

one

ther

increases in living standards
will be forthcoming-—if appropri¬

by the twin ooligaciohs of, on

us^

ing securities.

have

Very

propeny,

directing the Fed¬

Board

of credit for

use

century
these periods of speculative excess
1929.

weapons,

them

use

saver

given

flexible credit mechanism.

when

the

our

the

are

enormous

have

number of

political strong enougn

Commis¬
remarkably

our

of the west.

from

France

at the present

professional men, but

States,

effective

get-rich-quick

The foregoing comments about
taxes apply, of
course, with equal
force to almost all small business

Spec¬

stock

United

erating the opening

these

situation

which, after its formation in 1788,
provided much of the financing re¬
quired for early enterprises. It
was
speculators
who
long ago

cess

for

high
This,

Exchange

vastly complicated
of our business.

there

to take

speculation.

is sometimes a/*bad

word, yet in the broadest

tators

bus¬

our

the phrase

capital" leads

the

"Speculation"

thinking

about in connection with

sically unsound

peacetime

and

however,

turn

now

enemy,

given

other things worth

some

the world with a

across

openly 'committed
to destroying our form of c.vilization, we nave on our side a

deadly

curities

busi¬

our

Speculators Aid Economy

don't agree, we also think it's ba¬
a

also

and

and,

unfreezing capital wouid, ac¬
cording to the Treasury, increase

problem too.

who

ne^t

faced

are

past.
'
ard of living. Second is Our will¬
Secondly, as standards of liv¬ ingness, tested tnree times in tne
ing rise in this country, > an in¬ last 42 years, to fight, if need be,
sion
has functioned
effectively. Its establishment was creasing proportion of our popu-f ior what we consider to be mor¬
lation holds a stake'" in its capital- :
opposed by many sectors of our
ally right.
Third, and most im¬
ist
form
of
social
organization. portant, is our evident, willing¬
industry, and we have criticized
Directly and indirectly more peo¬ ness at this moment to bear me
parts of the laws which it admin—
isters; moreover its requirements ple now than ever before own se¬ enormous burdens imposed upon
since it was set up, the Se¬

years

tioning of the securities

many

election

securities business in

capital transfers—this

the

are

month

for tax-free

would stimulate the economy,

Incidentally writers, ball-players
and
teen-age tenors have this
there

estate

contribute

always to be latent in

Although

real

and

whole the maximum of wnicn

there should be
someL_P.rovision in
the law for

averaging of income.

opposing candidates in

Thursday, October 18, 1956

which, if we
see.n
to ba
to assure tne main¬
and its bitter aftermath, we in this standards.
in turn, means tenance of peace lor practical pur¬
country took steps to see that it that unwise and harmful govern¬ poses
for an indefinite per.oj.
should not occur again.
An or¬ ment intervention in the opera¬ The first of these weapons is me
ganization was set up to regulate tions of the business community tangible demonstration of success
as
a
whole, such as that which which our country offers to/Lie
both the security markets them¬
selves and the
issuance of new produced the depression of 1938,' world in its worxing democracy,
securities.
In the more than 20 are less likely in the future than and in its high and rising stand¬
securities

as a

curities

taxation

two

improving

seeking office.
I
character of the

and

ous

of progressive

How¬
following the near-lunacy of

high

Historically I would say that
the
important events that have
shaped the present position of the

tic

its

Events Shaping Our Economy

years.

accumulate capital in the good
We think it's, unfair that
because of the inherent arithme¬

form

can

"loophole." We think
the tax should be greatly lowered,
and that provision should be made

gains tax

the

think

wants to

now

steel business.
25 and he

him

cost

fair

and
new

stock

bought stock

ago

Steel

U, S.

help finance

tors who built

answer

are,

therefore,

that

thoughts in
business?

and

the

1929

aspects

originate

those

ever,

prevent their reoccurrence;

have

bonds, how about

our

think

and abroad as unavoid¬
evils, and little was done to

venture

could be said

our own

acter

able

because it inhibits the

relation to the prices of stocks and

connection with

bad in the¬

economically harmful
in
practice that most countries,
including even socialist England,
have refused to adopt it. We ob¬

think about

men

poli¬

some

it produces relatively

revenue

and

ory

"venture

Unsoundness of Taxes
some

favorite of

ticians, yet

pro¬

Sound govern¬
ment is good, from it flows peace,
a stable price level, equitable tax¬
ation and all the other aspects of
a good economic environment.

are

This is the capital gains tax.

This tax is

foundly important.

These

which

particularly good position to

the electroate

estimate of the personal char¬

own

far

been

19,926,

1956

produced

the prior

total

week.

of 4,366,809

making

for

20,845

and

cars

combined

874,293 trucks

total

5,241,102

units.

Steel

Production

Estimated

Yield

101.7%, of

Capacity This Week
Steelmakers

are

well

their

way

making

peak production month, "Steel" magazine reported
the current week.
been produced.

which

With

October

Monday of

days left, 5,009,821 tons of steel have

The previous top production month

was

last March

yielded.10,924,788 tons of steel.

Output in: the week ended O :t. 14

was

11,000 tons

over

the

'
•'

Volume

134

Number

5578

The Commercial and Financial Chronicle

(1663)
preceding week's record output, 2,500,000 tons, working at 101.5%
oi Jan.

1 rated capacity.

I he

record

made

was

help fill

orders

demand.

20%

industry, but
would

About

the

steel

output

normally

the

goes

buying.

.December
have

the

mills

deliveries.

more.

Steel

;

have

Some

alloted

have

them

indicated

for

November

they

Wholesale

end

this

month

would

to"

should

fhills

see

accepting first quarter tonnage, either on a montn-to-month basis
for tne entire
quarter, depending upon the product. On some
the items in weak
demand, like cold-finished carbon bars,
alloy bars, certain wire products and sheet specialties, mills have *
been taking any first
quarter orders offered.
' :
Except for a few minor fluctuations, steel prices are steady,

Corn prices

bases

American

Iron

Steel

and

Institute

announced

based

ingot production rate

annual

For the

for

the

capacity of 128,363,090 tons

like week

month

ago

the rate

weeks

Jan.

was

1, 1956.

100.6% and

•

Electric Output Continued Downward Trend the
Past

Week

The amount of electric
energy distributed by the electric light
•and power industry for the week ended
Saturday, Oct. 13, 1956,
was estimated at
11,300,000,000 kwh., a decrease below the week
ended Oct. 6, 1956,
according to the Edison Electric Institute.
This week's output fell
42,000,000 kwh. under that of the

pre¬

vious week; it increased
701,000,000 kwh. or 6 6% above the com¬
parable 1955 week and 2,183,000,000 kwh. over the like week in
1954.

....

year

and

increase

112,094

cars,

-■"bakery* flour
?

15.9%

above

the
r

Output Established Further Gains Last Week

Advancing 22.4% Over Prior Week
Car output for the latest week ended Oct.
"Ward's Automotive Reports," rose 22.4%

.to
•

preceding
of

week

manufacturers

car

turned

12, 1956, according
above
to

the

that

week

National City Bank
York; The First National
Chicago; Bankers Trust
Company and The First Boston
Corporation are joint managers of

construction

the

industry assembled an estimated 72,664 cars,
compared with 59,351 (revised) in the previous week. The
past
.week's production total of cars and trucks amounted to
93,509
units, or an increase of 14,232 units ahead of the preceding week's
output, states "Ward's."
v

the

ahd

have

average

1957

■

•■■

bid

the

trade ^jn

incentives

coffee

green

Oct.

un¬

{the

absent

were

moderate

there

fair, but
satisfactorily.
slow

was

tne

and

favorable

loan

spot markets

than

the

454,200

last

week

bales

253,500 in

reported

the

same

The

Marine
Trust
Company of
New York; Reynolds &
Co.; Roosevelt & Cross Incorpo-f
rated; Shearson, Hammill & Co.;

Western

Trade Volume in Latest Week Held
High and Steady and
Surpassed That of a Year Ago

.by

13,313

while

cars,

during the week.

| and 24,585 trucks
Last
-•

made

the

output

advanced

there

reoorted

agency

United

." previous week

truck

previous week

women's

Fall

and

Winter apparel last
week, while the call- for housewares and
furniture remained at the level of the
previous week. Total retail
sales
continued high and

steady

year

Purchases

and

moderately

were

above

dipped

some¬

ago.
of

used

passenger

were

what, but dealer inventories

States.

This

compared

The

919

vehicles

well

cars

;

were

20,845

trucks

with

19,926

the

and

24,585 a year ago.
Canadian output last week was placed at
4,350 cars and 1,148
trucks.
In the previous week Dominion
plants built 3,619 cars
and 1 201 trucks and for the comparable 1955 week
3,947 cars

.and

665

dollar

volume

trucks.

retail

below those

trade

last

year.

the

period ended
1% to 5% higher than a year ago,

Wednesday of last week was
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1955 levels by the following
percentages: New England +5 to +9; East +4 to -f-8; South
-f2 to +6; Middle West and Northwest -f 1 to +5 and Southwest
and Pacific Coast —2 to +2%.
Increased

total

purchasing of textiles, women's apparel and furni¬

ture

boosted

ago.

Deliveries in

the

total

dollar

volume

wholesale

trade

lines of apparel and textiles

some

schedule.

were

week

behind

••

Commercial and
the

Bradstreet, Inc., reports.

the

9%
7

ended

218
a

Oct.

failures

from

253

Tolls

were

203

increased

slightly to 259
the preceding
week, Dun
considerably higher than

a
year ago and the 152 in 1954.
Casualties exceeded by
t^e pre-war level of 237 in the
comparable week Of 1939.

Failures with
last

year

week

ago.

and

liabilities of $5,000 or more edged
were

Among

small

to 219 from

noticeably from the 176 of
failures

involving

this

liabilities

and

Reserve

Board's

country-wide basis

index

for

the

week

taken from

ended

Oct.

6,
In

increased 9% above those of the like period last year.
preceding week, Sept. 29, 1956, an increase of 3% was re¬
ported.
For the four weeks ended Oct. 6, 1956, an increase of
4% was recorded.
For the period Jan. 1, 1956 to Oct. 6, 1956,
a gain of 4% was registered above that of 1955.
1956,

size

was an increase to 40 from 35 in the
previous week
the similar week of 1955.
Twenty-one of the concerns

failing had liabilities in

excess

$100,000

Wholesale Food Price Index Holds

against 23 last week.

Moderate Decline of

Preceding Week
Continuing the decline

the

Retail

trade

volume

New

York

City

last

week

advanced

10% to 12% ahead of the similar week of 1955, according to trade

Glass A Stock Offered
Gold

Seal

200,000

Dairy

Products

Corp.

class A stock

(10 cent par value)
is being made by All States Secu-"^11

rities Dealers, Inc.
The stock is
priced at $5 p^r share.
The proceeds from the sale will
be used for

poses.

general corporate

the

intention

pur¬

the

to allot $150,000 for ex¬
of plant and warehouse

pansion

facilities;
of

$375,000 for acquisition'
companies and $66,100 for

new

repayment of loans.

this

capitalization
of
completion of
financing will consist of 200,-

000

the

company

cents

class

value)

class

stock

and

stock

(10'
365,000(10 cents'

value).

par

Gold Seal
and

upon

par

its

Dairy Products Corp.

subsidiaries

the

are

engaged1

purchase, processing and;
of
milk, ice cream,

distribution
cream

butter,

skimmed

milk

powder and an increasing diver¬
sity of related dairy products.
area

Metropolitan

business

includes

New

York,
NewYork State, New Jersey and Con¬
necticut.

observers.
cool

Sales

were

stimulated to

weather.

great degree by abnormally

preceding period, the whole¬

10%

For

was

the

four

weeks

registered.

1956 the index recorded

ing period in

Samuel Franklin

(Special to The Financial Chronicle)

SAN

Robert

FRANCISCO, Calif.—
Casey, Ronald M. Hof-

and

now

with

Leland

Samuel

Scarlett

are

Franklin

...

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended Oct. 6,
1956, increased 9% above those of the like period last year. In
the
preceding week, Sept. 29, 1956, an increase of 11% was
recorded.

3 With

man

under

$5,000, there
•

Federal

Dairy

the

industrial

week

Department store sales
the

Spencer Trask & Co.

Its

Business Failures Point
Slightly Higher for Week and
Exceed By 9% the Pre-War Level of 1939;
(

Outstanding
and

new

In the corresponding week last year
101,581 cars
were assembled.

the

wee*

above that of the

rose

company

primarily

Co.; Tucker
Day; Wood,
Struthers & Co.; Branch Banking
& Trust Co.;
Heller, Bruce & Co.;
King, Quirk & Co Incorporated;

•

output

car

Smithers

Anthony

general trade expectations. It compared with
14,721,000 bales pro¬
duced last year and a
10-year average of 13,098,000 bales.

•

Last week's

Co.

week

Department of Agriculture estimate as of Oct. 1 placed
this year's cotton yield at
13,268,000 bales/ This was in line with

Co.

Offering

buying centered

National

Incorporated; J. C.
Co.; Braun, Bosworth
Incorporated; Alex. Brown
&
Sons; Clark,, Dodge & Co.;
Dominick & Dominick; Estabrook
& Co.; Ira Haupt & Co.
Hayden, Stone & Co.; Laidlaw &
Co.; Lee Higginson Corporation;
&

totaled

The

those

Illinois

Bradford &

year.

Consumer

Co.; Merrill Lynch,

Goid Seal
the

less

offering

and

aspects.

previous week, but well above the

last

Continental

Becker

roasters

prices held' steady through most of the past
tending to sustain values included a marked im-

purchases in

the

Company of'Chi¬
cago; The First National Bank of *
Portland, Oregon; Paine, Webber,
Jackson & Curtis; Coffin & Burr
Incorporated;
Barr
Brothers
&
Co.; Baxter, Williams & Co.; A. G.

domestic
and

cotton

bales, somewhat

Bank and Trust

403,300

members

Fenner & Beane; White,
Weld & Co.; F. S. Moseley & Co.;
Stone & Webster Securities Corp.

expansion in demand.

move

market

scaled
to
yield from
to 2.95%, according to ma¬

Rothschild

bushels

92,885,278 pounds for the same period last year.
prices ^showed moderate improvement aided
by a substan¬
in vegetable oils.
Domestic consumption of lard
was
reported quite satisfactory but
export .business remained
only fair.
'
'■7'-'7V,
-•

goods

prices

& Co.; Harris Trust and Sav¬
ings Bank; Glore, Forgan & Co.;
C. J. Devine & Co.; Kidder, Peabody & Co.; Drexel & Co.; L. F.

corn

recovery

cotton

being reoffered

are

ney

been

Lard

the

best

2.90s,

net interest cost of

bonds

Other

compared with

the
and

group include:
Harriman Ripley
& Co. Incorporated; Smith, Bar¬

Cocoa prices again moved
downward, reflecting continued
weakness in the London market and
only routine interest* on the
part of manufacturers. Total cocoa
grindings for the third quarter
of this year were reoorted to
have reached 98,431,615
pounds as

bank

turity.

Coffee shipments from Brazil for
the week ended last Satur¬
day totaled 295,000 bags, of which
180,000 bags were destined for

Factors

for

17.

1.90%

the United States.

Spot

submitted

100.1916

The

working off part of the heavy inventories accumulated
September.

tial

1996, inclusive.
group

representing

■

still

were

The

39,500,000

beforeh and- 53,200,000

family flours continued

Business

$57,600,000
Com¬
Massachusetts, Vari¬
Bonds, aue Nov. 1,

Purpose

ous

Pierce,

ou-S H.ttle prospect of any material early
'directions on bakery types were

semolina

awarded

monwealth of

the Chicago Board of

characterize

Buying

underwriting syndicate which

year

sdy beans, and
said to be in

crop

daily

week

2.9298%, at the sale conducted

and

corn

with

Shipping

the

1957 models.

Last

rapidly

and soybean futures
slowed down to a

market.

Reported

At this time

First

Bank

was

dipped

Weather Conditions

the growth of

T?hHrfeskr -continued

Prior Period

corresponding week in 1954.
U. S. Car

month.

provement

Loadings for the week ended Oct. 6, 1956, totaled 815,004
cars, an increase of 13,445 cars or 1.7% above the
corresponding
week

commodity price index

solid

Loadings of revenue freight for the week ended Oct. 6,
1956 declined 16,434 cars or 2% under the preceding week, the
Association of American Railroads reports.

1955

ago.

week.

Loadings in Week Ended Oct. 6th Declined 2%
Below

The

of New

sharply with the lowering1 of premium

the

45,100,000 the

pro¬

2,477,000 tons. A year ago the actual weekly production
placed ai 2,386,000 tons or 98.9%. The
operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual
capacity of 125,8z8,310 tons as of Jan. 1, 1955.

jHdkmg .is ^progressing

duction

usually good condition.

1956

was

Car

declined

first

the f -.Trade-last week
bushels, from

that

2,504,000 of ingot and steel-for castings as compared with
100.9%
of capacity, and 2,483,000 tons
(revised) a week ago.

industry's

hogs

Index Continues Mild
Week or More Ago

Trading in grain

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of
101.7%
of capacity for the
week-beginning Oct. 15, 1956, equivalent to

The

the

-.odeal-^or-completing
<

"Steel" magazine concluded.
The

Massachusetts Bonds

were

steers,

eggs,

price

prices generally tended to weaken last
week
with
trading slower than in recent weeks.
Although wheat finished
slightly higher, the prolonged drought conditions
in the West
and Southwest failed to
bring out any active buying in the trade,
and export
business, which is now in the hands of the private
trade, did not materialize to
any extent.
The Department of
Agriculture reported that
up to Sept. 28 Winter wheat farmers
had put
4,335,555 acres of land into the Soil Bank.

and

-or

•

cocoa,

Grain

•of
•

Down

294.69 oh Oct. 9, from 297.29 a
week earlier.
ago the index stood at 278.32.

;
producers

the

Group Marketing

Commodity Price

Bradstreet daily wholesale

„

that

tea.

The mild recession in the
general commodity price level that
a week or so
ago continued into the past week.
The Dun'

•

reported

and

bellies,

•

flour; wheat, oats,*"

started

are
beginning to take orders on major
products for the first quarter of next year, this trade magazine

oil

Recession Begun

•

•declared.

•

cottonseed

sugar,

were

The index

511,000 passenger cars for October—the best since April's
output of 547,766. Industry talk of 1,700,000 to 1,800,000 for this
•quarter would require a step-up in November and "December
production, this trade weekly observed.
In some areas, auto
companies have signified they will take
steel

last week

represents the sum total of the
price per pound of
raw foodstuffs
and meats in
general use and its chief function
to show the
general trend of food prices at the
wholesale level.

than

much

cost

barley, beef, hams,

rye,

and lambs.

butter,

corn,

A surge of buying by auto makers would
hit lighter forms of
steel, such as cola-rolled carbon sheets, a product in fairly easy
supply the last several months. Heavier forms of
steel, like struc¬
tural shapes, plates, large bars and
large sizes of seamless tubing,
have been in strong demand for
quite a while.
The publication said the auto
industry has programmed more

$5.86.

lard,

Not only

First National City

Higher in wholesale

auto

sharply accelerated~demand by the auto, soakers fill the
in the steel market, but it would spur others t6 do protective

gap

$5.97

take has been light for several niqnths.

its

food

price index, compiled by Dun &
Bradstreet, Inc., fell
Oct. 9, from $6.00 one week
earlier.- The current level
contrasts with $6.11 a
year ago, or a drop of 2.3%.
The 1956 high
was $6.18 on
June 5, while the low
point was reached on Jan. 17

the

books, according to the magazine. It said everyone's watching the
automobile industry for ernes about the future
strength of steel
.

sale

pro auction

1955.

For
a

ending Oct. 6, 1956, an increase
period Jan. 1, 1956 to Oct. 6,

the

rise of 5% above that of the correspond¬

Company, Crocker Building.

Joins Allen Inv.
(Special to The Financial Chronicle)

BOULDER,
Mastalir
Allen

has

Colo.
joined

Investment

Pearl Street.

Milton J.
the staff of

—

Company,

1334

-"V

The Commercial and Financial Chronicle

(1664)

of this outlay with the result

80%
of

Railroad Securities

least

the

debt

One

the

smallest

the

among

nation's railroads, the Monon does
often

not

but

into

get

has

made

the

limelight,
two

news

casions within

the past

Eirst

announcement

the

was

would

which

change

that

its

real
name
borne since 1897 to

had

oc-

12 months.

its nickname and,

accordingly, the

former

Indianapolis

Chicago,

Louisville

becarrie

Monon Railroad

present

Jan.

The

year.

officially
11

the

of the

second

devel-

opment was the announcement
Oct;

that

directors,

the

road's

after

board

weeks'

several

study, had approved two alternalive offers to exchange 5l/z% 50year income debentures or a combination
of
the
debentures
and

Class

,for all or part
343,714 shares of its $1.25

the

common

dividend

preference
stock

common

The

the

but

has

change in the road's

matter of

participating

only casual interest,

pending

exchange offer
of significance.

a-great deal
therefore focused

has

deal of attention

issues

the

name

great

the two stock

Monon, the Class A

"after funds"

the

road's

reorganization

lowest figures in

$2.11

leave

some

20, respectively.

this

issue

stock

and

concerns

directly,

also

While the

only to holders
the

available

for

because

involved

B
of

Net

1955.

earnings

due to the usual combination

were

higher

compared with
in

with

and

years

several

which

outdistanced

preceding

substantially

both

District

its

petxoi.wdhce

giowui

1955

many

through

carry

The Monon,

company

outstanding

than

revenues

1955.

roads, failed to

less

and

wages

increase

Cen.ral

the

and

uoward

Class

trend

bath

Ievenues anc* ton-mileage.
No discussion

uation

of the

can

called

sit¬

comniete

without

benefit

arising from the increase
charges by substituting
the Class A stock, it is
estimated
that
earnings on the
fixed

debt

for

Class
or

stock

would

doubled

by the elimination of the

participating feature of the Class
A.

This

stock

balance

any

equally

net

income

re-

maining after the payment of $1.25
Class

any

vernative would

cipal

value

$25

tures,

while

place

the

$25

the

$35

5^2%

other

Class

value

par

Class B.

value

par

One

year.

plus

prin-

deben-

would

the

re-

same

The latter would increase

°utstanding Class B from 195,/46

thus

«s

281,674 shares.
It
early to try to make

too

any

estimate

potentialities

earnings

known how

much

4* *Vfw1S offer e
Gi,
tent the

Class
until

of either alter-

anc* *° wba* ex~

Monon

The

accepted in toto.

Needing both ICC and stockholder
approval, this will not be for some

until

plan to do
stock

benefit

from, either substantial

Monon

acceptance of the offer
the
to

clearing
of

cause

away

dividends

arrears

.stock which

the

barrier

stock

the

still

complete
would

the "B"

be-

Class

amounts to $2.50

share, or a total of about
$860,000.
While Monon Class A
per

stock

stock,

designated

has

the

common

attributes

SfviHpnH^ r!r

improves

its

step

one

this

that,

Otherwise,
to

the

Monon

appears

be well situated to make

While

the

has

Monon

deal,

only

slightly lower debt

per mile, making due allowance for the increase

some

Chicago

the

million in

$12.3

reason

Eastern

the

exchange

greater

stock

for

the

debt

Illinois

last

year

part of its Class A

debentures,

the

total

clebt of the Monon has been stead-

jiy reduced, while that of the Chi&

cago

Eastern

Illinois

of equipment trust obligations. Again eliminating the $12.3
million

increase

and

since

poses to

the

1955

purposes,

parative

the

create

over-all
Eastern

Monon

for

com-

particupro-

similar increase,

debt

Illinois

the

Chicago

increased

$7.2 million between the 1949-1955

which

was

reduced

Chicago
duced

by $2.5 million.
Eastern

The

Illinois

re-

its

The Class A stock

unusual

feature

for

nor

sn^re.

basis

$2-30

per

tween

Chicago
in

City,

the

Monon

and

Monon)

its

line

to
on

lines

parallel

St.

the
could

Possibly the service

coordinated

considerable

with

savings under unified operation.

measured

by any normal stand¬
Moreover, we have enjoyed

ards.

long period of economic

Van

shares of

are

stock of Burndy

common

Corp. at $10.25
proceeds

sale

these shares will be added to gen¬
funds

eral

available

the

for

company

general

corporate

purposes.
The company contem¬
plates that substantial portions of

these proceeds shall be utilized to

finance expansion

of manufactur¬

ing

the

facilities

acquisition
of
additional
machinery
and
equipment I for these
additional
facilities.
The company also in¬
tends
to
allocate
approximately
$400,000
the

and

the

for

development of
product lines. Any excess of

proceeds will be used to

vide additional

Outstanding
capitalization

pro¬

working capital.
funded
debt and
of
the
company,

authorized

one

1949

and

the

other

issue

The

par

has

enjoyed

and

was

periods 01 prosperity ana
expansion in
the past
century.
of

them

has

the current

lasted

as,
Even

period.

manufacture

pioneer

and

supply

tric

for

expansion
followed
In

speculation that

utilities

the

maintenance

the
elec¬

construction

generating
planK transmission lines and dis¬

tribution systems.
one

class

for

substation

tivities
grown

thousands

ac¬

have

company

depression.

comparisons
with
past trends, 1 do not wish to sug¬
gest that history necessarily wul
lepeat itself,
historical parallels
can, 01 -course, be quite mislead¬
ing. Yet I do think that past ex¬
perience justifies our being in¬
tinues,

the boom

signs tnat

any

perity is unhealthy
And

ance.

with

that

pros¬

everyone

investment

responsibility

that

our

con¬

out of bal¬

think

concerned

special

where

sizes

connectors, as well

and
as

for

has

maKing

avoid the type of ex¬

contributed

business

in the past.

whether

our

is, in

economy

fact,

growing too fast.
maximum

growth that the

nation

ating

sustain

risk

try

sustaining
too

grow

pattern

our

between

the

What

growth that

itself.

rapidly,

If
we

repetition of the boom and

over,
as

balanced

capable

bust

expansion.

wanted

without gener¬

unhealthy and, therefore,

ta b 1

n s

rate of

can

the

More¬

past.

growth is unbalanced
important segments of

economy,

also

may

many

There

has

been

some

evidence

the

recent past that we were
suffering from unbalanced growth.

period

participating
have

averaged

annually
and

the

for

tne

against

thp

Chicago
some

23%

Eastern

date

back

to the 20 s.
It is true
on y,e 0ther hand, that the total
P"or

ownersbip

tbe

Monon

lcwer in proportion to its business

volume,

but a step toward correcting this is contemplated in tile

average

1956

improvement

earnings have averaged
share annually over this

road

which,

$1.30

per

same

period, the latter figure be- freight

St °nly 57% m the

§a

case of the
Illinois, and

57%

nnlv

among

earmarks $1.5
cars.

budget

other

new

It is hoped to finance

them.

present scope
a

wide range

cations,
of

control

motives,

appliances, electrical
electronic

diesel-electric

aircraft,

automobiles

electrical

manufacturers

equipment,

cover

and

loco¬

machine
motor

wholesalers,

tools,

trucks,

electrical

contractors, shipyards, paper mills
and chemical plants.

[

;

to'in¬

The
the

situation

iaci

tnat,

dustries,
ments

is complicated

and

wage

have

number of in¬

salary

pay¬

advancing

been

rapidly than the increase in out¬
put
per
man-hour.
Experience
shows'that whenever this happens,

rise.

the. long run, industry
prices if the cost of la¬

must raise

bor per unit of output is

Industrial

increased.

Prices Increased 4%

This is precisely what has been
happening in the past year. In¬
dustrial prices have been rising as
wage rates have advanced faster
than

productivity. The average of
industrial prices has increased 4%
in

the

past

Until

re¬

ex¬

hibited
of

greater

stability

because
How¬

decline in farm prices.

farm prices have

ever,

moved

now

8% from their low last Decem¬

ber.

has

result, the cost of living

climbed

this

months.

the cost of living had

cently,

since

the

spring

year.

would

then that we
point where we
stand on the verge of trying to
grow too fast, if indeed we have
not already started. The behavior

have

appear

reached

prices certainly sounds
warning note. If business

try to spend

sharp

were

inventories

and

capital expansion, if consum¬
ers
should spend more on autos
and other items, and if govern¬
ment tries to spend more on de¬
roads

other

and

certainly will

over-taxing

run

programs,

the risk of

economic

our

re¬

sources.

Under

the

Painful

circumstances,

there

Reserve's

well
the

new

by inventory

homes

building

business.

part

that

and

autos

benefit of

had

hindsight, it

With

the
clear

seems

were

then

ex¬

which could not

overiy

of credit contributed

use

policy of credit restraint.
though it may be in many
the

respects,

alternative

even

painful. With today's con¬
ditions, easy credit might well
lead
to
heavy
speculation
and
over-expansion — distortions that
could
only be squeezed out
through the wringer of a depres¬
more

have

drop in auto
in residen¬

well

is much to be said for the Federal

sion.

however,

year,

substantial

production

the

other

hand,

are

successful in containing the over¬
all forces of inflation in the period

tial construction; and, fortunately,
immediately ahead, we shall have
the over-all impact of these de-\ made a
very substantial contribu¬
clines has been offset bv a re¬
tion toward
markable

expansion

investment, and by
items.

business

increase in
of

other

through
have

purchases

consumer

short, we have gone
what the commentators

termed

Can

"rolling

readjust¬

keeping our economic
sound basis. But the
problem is not only one of main¬
growth

taining

sense

also

over-all stability in the

that

propriate

one

avoid

inflation, it is

maintaining

balance

Sustain

ap¬

between

growth in key sectors of

the

our econ¬

omy.

Balanced

Growth?

Now,

company's

of operations

difficult

supply of goods and
services to satisfy rising demand.

sales

of customer classifi¬

Thus, it will be

the

very
rapidly
through the end of
1955, spurred on by extraordinary

from mid-1954

the tools for

The

including

electrical

the

things

million for 200

installing

of about

level

there is little leeway

and

crease

ahead

moved

record

against capacity.

fense,

for serious trouble.

by putting
people to work. Output of
basic materials is pressing

Our goal is the

offers

types

ment is

prices of industrial products tend

making

ment."

point

connectors

construction,

the

Beginning with

electrical

was

unbalanced growth.

by elec¬

use

long
more

significant is this sober fact—each
of
the
past
periods of general
growth ended in a period of over-

2,500,

organized in

was
a

four

similar

This

Burndy Corp.

is oper¬

economy

ating at close to capacity. Employ¬

nation

None

sh?res.

1924

1953-54.

total

years.

two

be maintained, and that an

consumers,

expand production

debt

stock out of

our

million,

fields

949.405

part of

government come at

time when

of eighteen

a pace

common

the

business and

period

perioa, we nave uau umy
relatively mild
recessions—

these

and

mands

that

panding at

value

ability to meet all these demands
without generating an inflationary
movement.
The
increasing de¬

1938,
In

will consist of $1,697,865 of funded

completion of this financing,

But currently, one answer to the
question of whether we are grow¬
ing too fast revolves around our

fact, the general trend of
production has been upward since

share.
from the

per

favorable.

community must try to determine

Nodi & Co. and
offering
225,000

Alstyne,

expan¬

buying

consumer

extremely

sion.

In carrying out this responsibil¬
ity, all members of the financial

Stk. at $10.25 a Sh,
r

economic

picture in perspective. Our
economy is very prosperous today,

downturns

Group Offers Burndy
associates

1938

our

nomic

sure

Alslyne, Noel

Since
at

history emphasizes the importance
of attempting to keep
the eco¬

cess

Van

look

line to"~ln-'
creasingly alert,
Chicago
&

the

Illinois

Ncrth-South
be

the

River, but with the

contributing

cianapolis
Louis.

ease

Ohio

the

and

net increase of $7.5 million
equipment trust obligations.

bank¬

Michigan

(and

trical connectors

into

A
further
point ox
similarity between the two roans
is 'that they largely parallel each
other and not too distantly I be¬

mortgage debt by some
$3C0,000 in this period but showed

car
on

Monon

1949-1955

available

the Monon went

ruptcy.

Record

brief

for

prospects
look

Dramatic

tl; ,a1?=,hi0mm0n
°, h^:
fkait
price, namely $25
p
Earnings

their joint control

The

paid in full.
*

gave

when

year-ends, while that of the Monon

1940

Unr.

roads

uoon

now

respects

many

glance, a merger
be a "natural."
extend predominantly
to

and the Louisville & Nashville

ern

crea-

tion

the

and

from North to South and both de¬

new

sharply due to the

creased

in-

has

Thp

seem

Net

itS

first

Both

direction.

annuaJ
In spite of this heavy outlay for
*WnrP
"h*
b<r met equipment, the freight car fleet of
thP rLl
tn«?pt£an ^PaV? °n the Chicag° & Eastern Illinois is
&eth.er Wlth a11 ac- mucb older on the average than
I PTr ,yea,rstbe~that of the Monon, and this would
tprp pilnpH
dividends seem to be another bargaining
A
r^.lChT point in favor of the Monon. Over
havf Jc
S A dividends 88% of the freight cars .of the
cinpp^iQ4Q
rm eaC] Monon have been installed since
year since 1949 and therefore must
,

been

several

for

Monon

similar

might

al-

with the Class A

away

may

larly
further

strong bargaining position
by- strengthening its capital position and clearing away the Class
A arrears. The proposed exchange

me-

512-mile

are

ready

al-

give each Class A

have

roads

dieselized

the

years.

ably will not be promoted by -the

both

that

fact

freight

per

This is in spite of

completely

the stage of generalities and prob-

elimination

stock.

hour.

weather eye out for possible heavy
economic sailing ahead.

somewhat

ton-miles

gross

train

This has not yet developed beyond

trend

greater degree, of gain in physical
operating efficiency as measured

Eastern

Monon

the

entire

upon

Class

receive

growth

is,

pend heavily on connected traffic
eight months of 1956 amounted to —about 64% in the case of the
94 cents as against $1.51 for the Monon ana 57% for tne Cnicago
corresponoing
1955
period
and & Eastern- Illinois—based on tonavailable earnings were 21. cents age on the average for the past
and 82 cents, respectively, for the five years. A large source of this
1956' and 1955 periods.
interchange traffic for the Monon
This year's less favorable results
is its former co-owners, the South¬

Including the tax

great benefit it would

though

is 750-mile Chicago & Eastern Illinois

giving consideration to
the possibility of its merger with
the Chicago & Eastern IlLin:is.

the

and,

revenues,

page

Crowing Too Fast?

are

applicable to Monon B for the first

only

Class

doubt,

line with the 1949-55 average
against $2.58 net and $1.53

totals'as to

Class°A

for

room

nevertheless estimated
that
the
1956 full year result may be about

22 and

the

this period were

respectively. Although the results for the first
eight months of the present year

and the Class B, which sell around

in 1946, and the

and $1.04,

Eastern

offer will be made

by
whicn

provided

was consummated

average

outstanding.

now

ing

the

which

low

stronger

Are We

Monon.
in

from first

senior

the

superiority

density,

and

Monon Railroad

the

factors
holds

traffic

By GERALB D. McKEEVER

total

Other
Monon

Continued

reversal

temporary

downtrend

1956

Thursday, October 18,

...

question

once

periencing
growth
Business

again,

to whether

the
that

sort
can

face

the

Business

Capital

Investment

we are ex¬

of
be

balanced
sustained.

capital expenditures

are

Today, this question of balanced
growth
the

posed

crucial

area

most
of

sharply

business capi¬

continuing their advance, and are
moving onto new high ground.
Government outlays are beginning
to rise again, as more is scheduled

tal investment.

billion for all business—represents

be spent

farm

highways, schools,

programs

and

defense.

Spending by consumers has been
increasing, too.
With wages and
salaries rising, and new auto mod¬
els coming
on
the market, the

tures

for

new

ment have been

Business expendi¬

plant

and equip¬
climbing steadily.

The current rate of

spending—$46

25% increase in 18 months.

This

dramatic rise in investment
up

the

very

brings
important question of

whether, we are
expanding our
capacity too rapidly—whether, in

Number

184

Volume

5578

The Commercial and Financial Chronicle

(1665)
effect, we

beginning to build

are

;

the middle of expansion programs
that will raise their own capacity

is-

too far ahead of the market.

Business

capital

of the

one

most

investment

significant spark

It is by
putting to use more capital that
we have been able to multiply the
efficiency

thus raise

production

our

living standards.

with

ahead

has

pattern

investment

business

only to be cut back
sharply when the business
Happily,

the

postwar

the

reasons

1949 and

and

this

economy

later have

build

ahead

point where

matter

pansion

our

economy,

even

such key industries

our

dustnes

has

not

expanding
others

matter, it is
the current level of busi¬

investment with trends in the

Investment

investment
manner,

expenditures.
have

adjustments"

in
as

consider

between
the

business

nation's

Present

Avoid

and

Gross

National

the

duction

the

States
of its

is,

Product.

United

about

vested

that

the

since the turn of the

average

tury,

and

production

services,

goods

cen¬

in-^

has

total pro¬

plants and equip¬

new

ment.

Ijf you rule out the years of
the great depression when invest¬

ment

abnormally low, the rate

was

is 9y2%

investment

tional

Product

slightly

than

method

Gross

works

rate

this

then

investment

total

our

this

"rolling
investment

the

national
so.

Bunching

economy

requirements

whether

vestment is too

rapidly

goes

how

see

vxort

r,(

A considerable part of

avoid

can

"bunching" of periods of
rapid growth in individual

industries and if, at the same time,
of

keep the over-all growth

can

our

ing.

economy

sound

zation, rather than for expansion.
Gnrrpntlv

rpnlarmrmnt

about

for

pxnansinn

for

that

has

accounts

totaT

and

spent
obsolete

and

indus

our

grows^the"

machfoe
to

61%

S£

worn-out

capacity currently being

whether

tryjng

replace

facilities,

over-all

add

value

about

all

basis, then, we
$28 billion to the

business

plant

and

equipment during 1956. Since we
had the huge total of $725 billion
invested
the

productive capacity at

beginning of the

expenditures
mcrease

our

for

year,

current

expansion

will

this

capacity

year-

lines.

not

may

too fast in certain

grow

Certainly,

tion's

postwar period,

total

production

and services has been
average
on

rate

the
of

na-

goods

rising at

rate of 4% per year. Thus,

over-all
of

capacity

basis,

increase
seems

the

current

productive

line

with

the

nation's needs.

further

accel¬

the

Aided

Expansion

Notwithstanding

balance, it does
number of

this

seem

might well be questioned

that

grounds

0£

would

represent

"bunching" of growth

that could lead to very difficult
adjustments for the economy as

tant

Before passing judgment on the

current level of business invest!T!ei?
however, it seems to me

need to consider two other

we
,

iatelywe

are

performance
to

from

far

warrant

seems

cautious

opti-

first question is:

exPect

each

spent

Fortunately,

being

produce
tive

products at

keep

ing.

The

and

the

and attrac-

rate that could

expand-

automobiles,

color

expanding phase
these fa

■

CQn_

in_

fluence of the uPwai'd Pressures
exerted
rec(,nt and

amaz-

ing population growth and by the
even

dramatic

years,

the

middle

income

in¬

has

increased

significant that

lies

Only

the

and

ability

families to

automobiles,

new

afford

homes and

new

other items that make for

richer

life.

that

the

evidence
feils to support those who take a
me

pessimistic view of

ability to

our

still

purchasing power,
of this vast middle-

growth

income
The

market

maintenance

in over-all

sustained.

can

of recent

incomes of

$4,000 to $10,000, could
most

trends

purchasing power, and
concentration
in
the

heavy

beginning to outrun the

now

na-

matically
heavier

quired

out.

level

lays

the

basis

produce

striking rise in our ability to
the products industry is
to turn
out
in larger

consume

planning
1
&

volume.

crease

make

This is

the

Save

We
.

investment

output

tends

man-hour,

per

without pushing

family in 10
it would

one

but

group,

wmrnvthflioo.

debt

gage

number

„

seems

continue

debt

widespread

our

con-

economy

can

its rapid economic
prog¬
would seem to be no

there

reason

why mortgage and installdebt

tinue

years

ahead.

should

not

also

moderately

grow

Our

con¬

problem

the

keep it from growing too rapidly,
it did during 1955.

Actually,

consumers

considerable

housing

stability in the

The

and

have made

contribution

economic

past :year.

look

not

only

anced

but

also

consumer

both

savings

our

bal-

must

investment

in-

business plant and equipment and

investment in capital equipment for consumer use. Actually,
consumer investment in automoour

When

purchasing
more

than

output

power

50%

per

has gone

decline

the

past

per

year.

slightly more than
Thus, in the recent

consumer

demand

has

much
ness

ups

Consumer

have

and

investment

heavy impact
investment

very

fully

market

for
1955,

During
$52

other durable goods.

rise

total production.

the

economy's

billion

consumers

can

consumers

houses,

went

which
their

also

the
funds,

invested

autos

In doing

and
so,

further into debt

must

both

lending

sure

that
lUdi

the

most

for

least' inflationary

exercised

both

and

the

in¬

borrowers.

Challenge to Financial Community

shows

century

Past

earlier,

that

each

prosperity

challenee
munitv

pe-

snocnla- '

in the fkiancial

The
corn-

makeTure

is to

face

now

the

deoreLion

during

has ended
bv

his¬

our

period

f nVor_Pxnancion

f,^n followed

munity this case history does SU1C
now tace 1S to maKe
that in
not
itself.

repeat

will

cess

tinue

Our chance of
if we

suc¬

greater

maintain

con¬

the

highest
standards of quality in our lend¬
ing and investing operation.
If

without

believe

spurt,

future
our

larly

make

can

excesses

too

that

fast,

grow

excesses

born

times the

particu¬
of

of credit,

use

can

tend

too-

multi¬

chances that

continue to grow at a solid

can

without

rate

For,

economy.

the

prosperity and growth

many

moderate

speculative

considerable contribution

very

the

maintain

can

growth

the

investment

other

make

interest

own

terest

generous

—the current rate is about $6 bil¬
lion hieher than the 1955

J* would have gone

will

either

inflation

demotion.

average.

up far more
hsd consumers continued to buy

houses and automobiles at the rate

same

rise

personal

savings

income

after

around

7Vfe%

taxes
now.

the

from
in

rate

and

grown

ment

1955

addition,

the

Federal

running

few

from

years

to look back at this period
with satisfaction, in that we went

time

with swccess—that
low

ourselves

major

did

stress
not

al¬

too fast.

grow

Two With Federated Plans

Govern-

ORLANDO,

In over-all

rise

ings

has

crease

matched

in investment.

sonable
in

about

balance

large

has

measure

been

sav¬

the

That

Forms
LONG

in¬

CITY, N, Y.—
Mule is engaging in a

business under the firm

name

Capital Sec. Co.

ISLAND

securities

Security

Capital

from offices

23-12

held

Branch

Risser

to the FedFT.

LAUDERDALE, Fla.—D. J.

Risser Co. of Peoria

branch
26th

office

has

(Special to The Financial Chronicle)

■

mind, the period imme¬

prosperous

without

the artificial stimulus of inflation.

Street.

CHICAGO, 111.—John

diately ahead promises to be one
of the
most interesting and important in the nation's economic
history.
We
are
undergoing
a
major test of our ability to keep

opened

Northeast

1513

With John J. O'Brien

ficult to contain inflation.

economy

Co.

31st Avenue.

rea¬

erai Reserve's policy of restraint. If

Plans, Inc., 509 Magnolia Avenue.

Joseph

terms, therefore, the

the dollar amount

Fla. —Edward

Dailey and Thomas A. Ford have
joined
the
staff
of
Federated

support current investment,

our

able,

restraint,

now,

depreciation allowances have

hue

and

This has been due in good

measure

With wisdom

through

period, savings have
increased by about $6 bil-

try's capacity to produce and the
annual

busi¬

downs in

spending.

the
supply
community's
to insurancecom-

the

and

is,

funds

ing and maintaining sound stand¬
ards of lending, a
responsibility

make

consumer

When

uses.
At all times, lenders have
a vital
responsibility in establish¬

avoid

productive

ply

business and

com¬

heavy
to help

basis.

reserved

new-

*he Srapd total of

outrun

are

pur¬

investment—that

investment

man-

automobile

biles, new homes and other dur- we had had easy credit during the
able goods is about as large in past year, the demand for investhour is rising, therefore, consumer absolute volume as business in- ment
funds
would
undoubtedly
purchasing power expands. Even vestment. Hence, variations in in- have increased much more rapidly
after adjustment for higher prices vestment by consumers can affect than
the
community's- savings,
caused
by
inflation,
consumer
general business activity fully as thereby making it much more dif¬
wages

prices.

funds

financial

shoulder

for

institutions

^ yo.u 1°°^
our

the

balanced

generated

larger cash
surplus.
Both of these developin-\ ments can help supply funds to

business

To. achieve

growth,

support

and

demand

chases has helped make room for
the
rise
in
business
investment.

as
to whether we are
trying to grow too fast. In exploring this question, it is necessary

the

extended

clear that

installment

source

today.

ress,

must

As I mentioned

Nevertheless, it

our^econ- iion>
h

judgment

investment.

productivity, thereby lowering unit
costs, making it possible to in-

drain

It is fortunate

it isn't the absolute level of mort-

also
,

omy also continue to save enough

vestment,

high

Keep From Growing Too Rapidly

In the

sound

tory

Enough?

Now,letusask, rCan

re-

investment

because

This

they did in 1955.
Can

the

for

demand

consumer

spend

growth

well

responsibility if we are
keep (he economy's growth

further.

general

thus

and

economy

consumer

®e„<;ond.relevant in reaching a
tion's savings?"
To a considerable extent, a high
level of business investment auto-

about

this

tivity

our

payments

be healthier to reduce the

such

substantial

only

falls

con-

is,

payments.

family budget.

that

their current in¬

where

constitute
the

that

families

our

these

group

expand consumption. If we can
continue to increase the produc-

its

ment

Considering all these factors, it

seems

the so-called

more "of

011

savings, it is up
panies, banks and

one-fifth

and

designed to

threatens

than

payments, inpayments and the like,

11%

come

and

mortgage

cern

autos

pace

less

stallment

that is

the

debt

today's

the

our prohave

over-all

our

sup¬

monetary
are

goods
owned
by
Fully 60% of all fami-

spend

business capital investment can be

homes

tracturak^payments;

only
very

high proportion of the increase

directly

ex¬

balanced.

munity

has

market

36%, while the number of

families

5%.

shift

patterns.
In the past five
the number of families in

come

consumer

37%

All

re-

total

have

policies—par¬

the

sustainable

posi-

seems

hold

keep

durable

consumers.

40%

market

our

other

the

rent

development can opkeep particular markets

examples of how

are

addition t

value

their incowie

erate

only

air-conditioning,
improvements in

research and

fields—that

held

con-

The

amounts

markets

home

host

sound.

fiscal

And

economic

ticularly

this

5%. More-

still

consumers

mortgage and other

development

television,

markably

busi-

caPacity and efficiency of

slowed

financial

could

new

consumer

tion

over-all

against

flow of

well be

may

the

over,

the is a second fundamental quest.on

installed?". And

increase

has

that

weapon

downturns

ness

the

growth
-

growing too

the

debt

mortgage
We

capital

large enough to

continued

ductive machine.

consumer

during

year

Research

secret

0ur

Can

demand

consumer

port

the part of business

that is fully

—

would

level

penditures

impor-

and specifically
autos—under forced

and

most

our

Ul-has when at
riaen

times

achieved

national

expenditures

ment in the fields of
and
and installment Heht
installment debt.

fast-

the

"se rapidly enough to absorb the to support the very high level o
output of the new canacity that is investment now uderway?
This

pay

industries

draft.

some

housing

one

development,

matched the 4% increase in indus-

clear that

and

hands of families with

whole.

past,

over-all

major industries

keeping

genius

influence

1930's.

1957

years, a rise of

Rolling Adjustments
i

amount

the

Rapid

Our
to

To do so, would have meant

year.

rapidly,

salesmanship is

such

something

raise

crease

the

1955

atVrate

rising

was

t"nf"

eration of the rate of expansion in

amount

of course, increases.

will

debt

spending $5V2 billion to develop rate of 5%,'-at a time
new and better products—that is sumer income also rose

larcre

developed in certain of our leading industries does cause one to

that

each

spends

other words, our'
problem is
keep the economy growing but

same
time, keep
growing too rapidly,

and

foot¬

ve^v

Nevertheless, the

increase in

work

American

growth

very

growing

research

veiT fundamental questions. In a
on new plant and equipment sense they are interrelated, yet it
for replacement and moderni- 18 useful to look at each one sepabusiness

money

year

high is to

in-

productive capacity is

our

expanding.
the

capital

Performance Warrants Cautious
Optimism

clear that during

seems

traced

industries

Still another way to look at this

question

fabulous
for

all

1957

adjust to the

can

expansion

different

sor^

production, but not drastically

ac
back

had

economy

shifting
of

the

aiY0V5..1J x°x^?~

lationship

of measurement

current

Na¬

out

11%.

Our

wonder

Pr^sent> the ratio of business
capital

Another

grown

relationship

investment

total

billion.

in mortgage debt by 17% per
year
installment debt by 20% per

resources

these powerful influences.

generally.

Trends

the

well

First,

$18
of

reality, there

forces

markets

capacUy
caiiacity

ln
cutting

were

field

past.
and

coincided.

exnandinT their
fe"r

been

Past

their

vision

traditional

gumer

while

Comparing

keep
The

and consolidation in individual in-

this
useful to

ness

since

Woruld War 11 sl}ows
have been waves of ex-

In trying

compare

to arrive at

important

all

experience

for demand to catch up.

judgment

pace.

autos, steel,
non-ferious
metals
and chemicals, followed by periods
of consolidation. Fortunately, the
timing of these periods of. growth

stop short and wait

some

number of

takes place

fact

xl?
there

that

nature

industries

shall

are
expanding rapidly
necessarily a sign that in
points to trouble ahead. In

very

greater

much-to

nanpr

.P..\

growth seldom

However, the immediate probis not
instability which is
threatening a decline. It is, on the
contrary, a question as to whether
we may not be .trying
to invest
capacity to

not

the

lem

too

.Jy

itself

stability
investment pattern.

our

that

powerful

are

™°st ^or effective

mdustries

rather than to short-term ups and
downs in business, is an important
for

capacity by 8%.

But, the fact that

drawing up investment
which are geared to the

long-term growth of the

^straining

make

Expan¬

are

reason

their

increase

planned

surveyed

companies

mafhinprv and

com¬

consumer

majorIf'ieWs'as*s\eel°*automobiles'

mild, is that the de¬
business-spending
on
plant and equipment were rela¬
tively moderate and short-lived.

plans,

for

average

panies

plans

plans are known to be par¬
ticularly large in relation to the
past
growth
in
sales
in
such

1953-54 turned out to be

The fact that

investment

sion

relatively
clines

long-term growth in sales.

record

recessions

Consumer Debt

favorable straw in the wind. When

optimistic estimate of the

definite

the

curve

signs of greater
stability in this crucial area. One
of

business

ing

down.

shows

total

that 35%

con-

nesses
are
making these days to
expand capacity by increasing efficiency, thus reducing costs, is a

1956 showed that the manufactur-

very

turned

huge

means

But, will, consumer demand

are

good

years,

the

requirements set by growing so many businessmen envisage a that could not be sustained. We mism. In the past year, we have
markets in tne years
^n.^o. *or continued rise in their sales and could not go on for long expand- successfully negotiated an adjustexample, the McGraw-Hill survey

move

vigor

great

cases,

.....

been

This

catching-up process, but
companies may be try-

others

Demand

Continue?

sales
in the

grow

some

Consumer

investment during 1955 was fitinue to rise this rapidly? It seems n-anced* by a* net-increase in outthis
me that the effort so
many busi- standing debt.

tfyeir

to build today the capacity
they think they will need to meet

™n<=t

traditional

The

Will

consumer

ing

At the

past been one of the most
unstable elements in our economy.

for

may

expected

future.

near

and

has in

can

plugs to economic growth.

faster .than

rate

art

now

C. Stew¬

connected with John J.

O'Brien & Co., 231 South La

Salle

Street, members of the New York
and Midwest Stock
was

Exchanges. He

formerly with Hay den, Stone

Co.

The Commercial and

(1666)

Financial Chronicle

Thursday, October 18, 1956

* INDICATES

Securities

Now

and

ACF-Wrigley Stores, Inc. (10/29-31)
/
9 filed $4,000,000 of convertible subordinated sink¬
ing fund debentures due April 30, 1972. Price—At par.
Proceeds
From sale of debentures,
together with
.

Registration

Atlas

—

June

private sale of 4%%

15-year notes, to
about $8,000,000 of short-term bank
loans and for general corporate purposes. Underwriter—
Allen & Co., New York.
V
$5,000,000 from
used

Underwriter

general corporate purposes.
by amendment.

To be

—

due June

amount.

15,

ISSUE

develop shopping centers at the seven sites and to
and develop additional sites for related real
estate
activities, and for general corporate purposes.

^Underwriter
and

1968. Price—100% of principal

retire

Proceeds—To

REVISED

acquire

Credit Corp., Philadelphia, Pa.
filed $600,000 of 6% convertible subordinated

debentures

repay

ITEMS

•

named

Oct.

ADDITIONS

SINCE

indebtedness

the

com¬

Blair

—

New York.

tional 300,000

Co.

Latter has

common

Incorporated, Philadelphia

agreed to purchase an addi¬

shares and reoifer

them

per¬

selected by it at $1.10 per share.

sons

its affiliates for money borrowed for working
Central Illinois Public Service Co. (10/23)
capital. Underwriters—Hallowell, Sulzberger & Co. and •/
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
Oct. 1 filed 170,000 shares of common stock (par $10).
and Weill, Blauner & Co., Inc. of New York,
Proceeds—To repay bank loans and for construction
;///;:
pro¬
panyto

it Allied Stores Corp. (11/1)
11 filed $15,000,000 of 20-year sinking fund deben¬
tures due 1976. Price — To be supplied by amendment.
Proceeds—For general corporate purposes. Underwriter
—Lehman Brothers, New York.
Oct.

•

American

Oct.

filed

Discount

Co.

$1,000,000

of Georgia
(10/25)
20-year capital debentures,
Price—At par (in

common

units

$1,000

Underwriters

each).

Proceeds—For

Interstate

working

rate

0.46875

Price—10 cents per share.

for

Proceeds—

For general corporate purposes.

Underwriters—Berwyn
Co., Louisville, Ky.; Gearhart & Otis, Inc.,
New York, and Crerie & Co., Houston, Tex.
:■///

capital.

Securities

Corp., Charlotte,
N. C.; Johnson, Lane, Space & Co., Savannah, Ga.; and
A. M. Law & Co., Inc., Spartanburg, S. C.
—

stockholders

each share held.

5.75% series of 1956, due Nov. 1, 1976.

Moore

Automation Development Mutual
market:

American Federal Finance Corp., Killeen, Texas
Sept 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be

Proceeds—For

ton, D. C.

investment.

stock.

May 11 filed
Price—$5.25

/Century Controls Corp., Farmnigdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—

Price—At

Office—Washing- >- 90% of principal amount.

Distributor—Automation Deveigjpaent Secu-

development;

porate

ik-

Aiitomation

in units of 10 preferred shares and one common
Price—$55 per unit. Proceeds—To purchase used
paper and to extend the company's operations into

6hare.

•

Fund, Inc.

common

ritieS| Co., Inc., Washington, D. C.

offered

•

Aug. 24 filed 300,000 shares of

Underwriter—To be determined by competitive
bidding. Probable bidders: .Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Stone & Webster
Securities Corp.- (jointly); Glore, Forgan & Co.; The
First Boston Corp.; Lehman Brothers, Bear, Stearns &
Co.
and
Eastman,-- Dillon, Union
Securities
&
Co.
(jointly). Bids—To be received up to 10:30 a.m. (CDT)
on
Oct. 23.
.V;.:' V'v
gram.

Audubon Park Raceway, Inc.

July 13 (letter of notification) 600,000 shares of common
stock (par 10 cents) to be offered for subscription by

expansion;

Proceeds—For research and
*

equipment;

Underwriter

purposes.

—

None.

and
other cor¬
Offering — Ex¬

pected in November.

Industries Corp., Washington, D. C.
179,000 shares of ^common stock (par $1)„
per share.
Proceeds—For working capital

/ Century Controls Corp., Farmingdale* N. Y.
>
Aug. 27 filed 120,000 shares of- common stock (par $1).
the field of new car financing. Underwriter—None. J. J.
and other corporate purposes.
Price—At market (over-the-counter price in New York).
^ UndervarHejc —- * None./~
Fain is President.
^Proceeds—To selling stockholder (Ray, Daisley & Co.,
'//._// Harry Kahn, Jr., of Washington/D. C., is President and
Treasurer.
■;.. ■"
Inc.) Underwriter—None.
American & Foreign Power Co., Inc.
(10/31)
Baton Rouge Water Workst Co.
Oct. 5 filed 185,000 shares of common stock (no par).
Century Controls Corp. . v.
/
/,
Sept. 11 (letter of notification) 6,946 shares of common
Price—To
be supplied
by amendment.
Proceeds—To
Oct. 4 (letter of notification) $150,000 of 6% subordinate
capital stock (no par). Price—$43 per share. Proceeds
Electric Bond & Share Co., which will continue to hold
convertible debentures. Price—90% of principal amount
—For extensions and betterments to water
3,856,985 shares, 53.4% of the total outstanding Foreign
system. Office
(in denominations of $100 each). Proceeds — To pay
—131 Lafayette St., Baton
Power stock.
Underwriters—Lazard Freres & Co. and
Rouge, La. Underwriter—
notes
payable, reduce accounts payable and to pay
None.
The First Boston Corp., both of New York.
other current liabilities; also for working capital. Office
^ Beckjord Manufacturing Corp.
—Allen Boulevard, Farmingdale, L. I., N. Y. Underwriter
• American
Petrofina, Inc., New York
Oct. 12 (letter of notification) $50,000 of series A
—None.
6%
Sept. 26 filed 1,049,093 shares of class A common stock
debenture
bonds, $50,000 of series B 6% debenture
(par $1), of which 50,000 shares are being offered to
•
Century Food Markets Co. (10/22-24)
bonds and 207,500 shares of common stock
(par 10 cents)
directors, officers and employees and the remaining
Aug. 30 filed $2,000,000 of 6% convertible subordinated
to be offered in units as follows: 100 "A" units
(each
999,093 shares are being offered for subscription by class
debentures and 40,000 shares of common stock (par $1) to*
consisting of a $500 "A" bond and 50 shares of stock);
A common and class B common stockholders of record
be offered in units of $50 of debentures and one share
100 "B" units (each consisting of a
$500 "B" bond and 50
Oct. 10, 1956 at the rate of one share of new class A
of stock. Price—To be supplied by amendment. Proceeds
shares of stock); and 1,975 "C" units
(each consisting
stock for each four shares of class A or class B common
—To repay bank loan, for expansion and working capital.
of 100 shares of stock).
Price: Of series "A" and "B"
stock held; rights to expire on Oct. 31.
Price—$11 per
Underwriter—H. M. Byllesby & Co., Inc., Chicago, 111.
units, $500 each; and of series fC" units, $100 each.
share. Proceeds—For acquisition of other oil properties,
Proceeds—To acquire or lease plant; for dies and ma¬
Office—Youngstown, Ohio.
expansion of exploration and development facilities and
chinery; production equipment and. materials; inven¬
Chinook Plywood, Inc., Rainier, Ore.
the building up of the refining and marketing phases of
tory; and working capital.
tJBusiness.-— Manufactures
the business.
Sept. 4 filed 200 shares of common capital stock. Price—
Underwriters—White, Weld "& Co., Blyth
"Unit-Inch" ..electric convector -heateirs.
Office—7 West
At par ($3,000 per share). Proceeds—For acquisition of
& Co., Inc. and Hemphill, Noyes & Co., all of New York.
Water Street, Toms
River, N. J. Underwriter-—Berry &
a
plant site,- construction of a mill building, purchase
it American Reserve Oil & Mining Corp.
Co., Newark, N. J.
and installation of machinery and equipment, and as
•iri-,..-/.-*./
Oct. 8 (letter of notification) 300,0000 shares of com¬
• Beneficial Standard Life
Insurance Co.
operating capital. Underwriter — Industry Developers,
mon
stock.
(10724)
Price—At par ($1 per share).
Proceeds—
Oct. 4 filed 290,000 shares of common stock
Inc.
n'
For development of oil and gas properties.
;
(par $1).
Office—139
Price
To be supplied by amendment. Proceeds
To
North Virginia St., Reno, Nev. Underwriter—None.
Chisago City Telephone Co., Chisago, Minn.
selling stockholders. Underwriter
Lehman Brothers,
American Telephone & Telegraph Co.
Sept. 6 (letter of notification) 1,000 shares of common
New York.
stock to be offered to stockholders.
Aug. 22 filed 5,726,152 shares of capital stock being of¬
Price—At par ($25
Bentonite Corp. of America
fered for subscription by stockholders of record
per share).
Proceeds — For new construction. Under¬
Sept.
June 29 (letter of notification)
150,000 shares of common
writer—None.
*
14, 1956 at the rate of one new share for each 10 shares
:/'Z/ /
':"
stock.(par $1). Price—$2 per share. Proceeds—For min¬
/ held; rights to expire on Nov. 5, 1956. Price—At par
• Christiana Oil
Corpi : (10/29-30)
ing expenses.
Office—290 N. University Ave., Provo,
($100 per share) payable in one or two payments. Pro¬
•; Sept. 26 filed 400,000 shares of common stock
(par $1).
Utah. Underwriter—Thomas Loop Co., New
ceeds—For expansion of plant .and for advances
Orleans, La.
to, and
Price—To be supplied by amendment. Proceeds—To re¬
investment in stocks of, subsidiaries.
Birnaye Oil & Uranium Co., Denver, Colo.
Underwriter—
tire $2,500,000 of outstanding term bank loans and for
None.
April 6 (letter of notification) 1,000,000 shares of class
other corporate purposes. Underwriters — Laird & Co.
A common stock
•
(par five cents). Price — 10 cents per
Anheuser-Busch, Inc., St. Louis, Mo.
Corporation, and Model, Roland & Stone, both of New
share. Proceeds
For mining expenses.
York.
Office — 762
Aug. 30 filed 328,723 shares of common stock (par $4).
Denver Club Bldg., Denver, Colo. Underwriter—BirkenPrice—To be supplied by amendment. Proceeds
<
To
Citizens Credit Corp., Chevy Chase, Md.
v
mayer & Co.. Denver. Colo.
/
Estate of Edmee B. Greenough, deceased. Underwriter—
/
T\ "
Aug. 27 (letter of notification) 15,500 shares of class A
Lee Higginson Corp., New York.
Bridgford Packing Co., Anaheim, Calif.
Offering—Postponed
common stock
(par $12.50), being offered for subscrip¬
indefinitely.
Aug. 13 (letter of notification) 222,222 shares of common
tion by stockholders of record July 31 at rate of one
stock (par $1).
Price—$1.35 per share.
Proceeds—To
new share for each 25
it Ansul Chemical Co. (10/19-22)
shares held; rights to expire on
pay obligations, purchase equipment, etc.
Oct. 5 (letter of
Office—1308
or
about Oct. 24.
Price—$17 per share.
notification) 12,000 shares of common
Proceeds—For
No. Patt Street,-, Anaheim,
•stock (par $3).
Calif.
Underwriter—J. D.
Price—$25 per share. Proceeds
For
working capital, etc. Underwriter—The Matthew Corp.,
Creger & Co., 124 North Bright Avenue, Whittier, Calif.
capital expenditures and working capital. Office—Stan¬
Washington, D. C.
ton St., Marinette, Wis.
Brown Investment Co., Ltd.,
Underwriter
Paine, Webber,
Honolulu, T. H.
Colorado Springs Aquatic Center, Inc.
Jackson & Curtis, Milwaukee, Wis.
July 11 filed 60,075 shares of common stock (par $1).
Aug. 23 filed 500,000 shares of common stock (par 10
Price—At net asset value, plus a selling commission of
\ Ashtabula Telephone Co.
cents). Price—$1 per share. Proceeds—For swimming
7%% of the offering price. Proceeds—For investment*
Sept. 5 (letter of notification) 10,000 shares of common
pool and related activities, bowling alley, site preparation
Business—A diversified, open-end investment
\ stock (par $25) being offered to stockholders of record
company
including parking, and land cost ($.95,000). Underwriters
of the management
Sept. 20 on the basis of one new share for each five
type. Underwriter—Brown Manage¬
-—Arthur L. Weir & Co. and Copley & Co., both of Col¬
ment Co., 833 Alaska
shares held (with an
St., Honolulu, Hawaii.
orado Springs, Colo.
oversubscription privilege); rights
\
car

•

—

•<

expire

purposes.

Oct.

31.

Office

—

Proceeds—For
4616

Park

Ave.,

general

corporate

Ashtabula,

Ohio.

Underwriter—None.
Atlantic Oil

•

Bucyrus-Erie Co.

offered

of record.Oct.

Corp., Tulsa, Okla.

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital

Columbia

Sept. 25 filed 311,040 shares of

Business

per

—

(par $5)

subscription by common stockholders
16, 1956 at the rate of one new share for

held; rights to expire

share.

Produces

the United States.

New

stock

for

each five shares

Price—$42

common

on Oct. 31, 1956.
Proceeds—For expansion program.

power

cranes

and

excavators

Underwriter—The First Boston

Corp.,

York.

Burma

—

named

later.

•-

Philadelphia, Pa. (11/12-16) '
July 30 filed $8,000,000 of 5%% sinking fund debentures
due Aug. 1, 1971, and
1,600,000 sharer, of common stock
New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private fVires

all

offices

Chicago

Cleveland

cent) to be offered in units of $50 of debentures
and 10 shares of stock
(neither of which will be separ¬
one

ately transferable until Aug. 1, 1958).
unit.

(no par), to be offered for subscription by holders
common stock and participating preferred

outstanding

stock

on
the basis of one voting trust certificate for
each eight shares of either class of such stock then held

(with

Price

—

$50

$25

per

Oversubscription privilege); subscription war¬
good for a period of three weeks. Price—

share.

per

Proceeds—About $4,100,000 will be used to
acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used

Proceeds—To reduce bank loans.

Under¬

writers—The

Hilsman &

Robinson-Humphrey Co., Inc. and J, H.
Co., both of Atlanta, Ga. Offering—Postponed.

Connecticut

Power

Co/

Sept. 27 (letter of notification) 4,275 shares of common
stock (par $25). Price—$37.50 per share. Proceeds—For
construction

Centers Corp.,

(par

stock

rants

Shore

Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1
per share). Pro¬
ceeds
For equipment, exploration,
drilling, working
capital and other general corporate purposes. Under¬
writer—To

Baking Co., Atlanta, Ga. ~
Aug. 17 filed 26,768 voting trust certificates, each repre¬
senting the beneficial interest in one share of common

program.

Wethersfield, Conn.
Consolidated

Office

—

176

Cumberland

Underwriter—None.

Edison

Co.

;

Ave.,

Y., Inc. (10/23)
Sept. 21 filed $40,000,000 first and refunding mortgage
bonds, series M due 1986.
Proceeds
To help finance
—

1956

expansion

mined

program.

by competitive bidding.

Stuart & Co. Inc.: Morgan
ton Corp. Bids—Expected

(EDT)

Underwriter

Oct. 23.

—

deter¬

Probable bidders: Halsey,
Stanley & Co.; The First Bos¬
to be received up to 11 a.m.

Number 5578

184

Volume

The Commercial and Financial Chronicle

Consolidated Oil Management
Aug. 16 (letter of notification) $250,000 of 10-year 5^2%
collateral trust bonds due Sept. 9, 1966.
Office—7352
Central Ave., St. Petersburg, Fla.
Predecessor—Lynch
Co.

Oil

Underwriter—Security & Bond Co., Lexington,

Kentucky.

Devall

May
mop

Casualty Co., Chicago, 111.

National

Fire

stock.

The

least

Insurance

Continental

offer

51%

Co.

stock

Hartford

for

conditional

the

upon

rate

one

1V4

National

acceptance of

(255,000 shares) of National stock.

Cro-Plate

Co., Inc.
Aug. 22 (letter of notification) 4,123 shares of common
stock (par $5) to be offered to stockholders on the basis
of

share for each two shares

one

for

each

now

held

Price—$9.50

held.

warrant

per

one

share.

Pro¬

ceeds—For

working capital, etc. Office — 747 Windsor
St., Hartford, Conn. Underwriter—None.
Daltcn Finance, Inc., Mt. Rainier, Md.
Sept. 28 (letter of notification) $250,000 of

6% 10-year
subordinated debentures (with warrants attached) and
25,000 shares of class A common stock (par 50 cents)
to be offered in units of one $500 debenture and 50
shares

stock.

working

Price—$525

capital.

unit.

per

Underwriter

Proceeds—For

Whitney

—

Co.,

Inc.,

Washington, D. C.

Marine

Construction

Co., Inc.

to purchase and equip tnree boat»
Office—1111 No. First Ave., Lake
Underwriter—Viekers Brothers, Houston,

notes,

working capital.

Texas.

Sept. 28 filed 625,000 shares of capital stock (par $5) to
be offered in exchange for outstanding capital stock of

(letter of notification) 150,000 shares of comstock (par $1)." Price—$2 per share., Proceeds—Foi

Charles.

Continental

Land

payments
and

(1667)

La.

Statement

Diversified

Aug.

warrants

working capital.
Co., Denver, Colo.

(par 10 cents) to be offered for subscription initially by
stockholders in units of 25 preferred shares and
warrant to purchase five common shares.
Price—$25.50
per unit (each warrant will entitle the holder to pur¬
common share at any time
prior to Dec. 31,
$2 per share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under¬
writer—To be named by amendment.

one

if Dodge Manufacturing Corp., Mishawaka, Ind.
15

filed

convertible

provide
000.

not to

exceed

72,000 shares of cumulative

preferred stock

(no

par

value).

Price—To

net to the company of approximately

Proceeds—For expansion and

and certain subsidiaries and associated companies.
Subscriptions will be received by the company Oct. 1
through Oct. 26. Price—$60 per share. Proceeds—For
expansion, etc. Underwriter—None.
Eastern-Northern Explorations, Ltd.
June 4 (regulation "D") 500,000 shares of common stock
(par $1). Price—60 cents per share. Proceeds—For gen¬
eral corporate purposes.

Office—Toronto, Canada. Un¬
derwriter—Foster-Mann, Inc., New York.
/ "

Eternalite, Inc., New Orleans, La.
Sept. 24 filed 200,000 shares of class A
(par 50 cents).
Price—$4.50 per share.

Un¬

derwriter—Central Republic Co. Inc., Chicago, 111.

Excelsior
Oct.

stock

holders

15,

October

(Thursday)

CALENDAR
Los

Angeles Drug

RR.

—

Equip. Trust Ctfs.

—

(Eids

CST)

noon

Insurance Co. of New York

record

October

Ansul

Chemical
(Paine,

Jackson

Standard Pressed Steel

Common
o'urois/ S.j0.,0J0

Quebec

Hydro-Electric

r..Common

(Kidder, Peabody & Co.) 25,800 shares

(Monday)

Century Food Markets Co
(H.

Byllesby
.

■'

International Bank of
(Johiiocon,

Stores

and

National

Co.,

stocik—oiaers—to

Inc.

aud Thornton,

unutrwrictcn

Mohr

October 23

Central

Illinois

Public

(£«ids

10:o0

Bank

Service

230,000

Hawaii
—'

EDT)

a.m.

(Bius

EDj.)

Manufacturing

(Offering

Turben

Co.

Co.,

November

$12,003,000

<Leiuuan

Brothers)

2i0,0J0

ijj.us

(The

First

Loeb

Harriman

TEMCO
(A.

EDT)

$10,000,000

lirs*

Boston

Corp.;

Eversweet,

aud

Reed

Co.)

$5,000,000

Inc.)

Public

Service

Sierra

Pacific

Electric

Corp.)

Sinclair

Christiana
&

Oil

(Monday)

and

400,000

Standard
(Merrill

Inc.)

(S.

October 30

Power

Co.)

a.m.

EST)

a.m.

Schick, Inc

Inc.)

Fenner

Co.)

October 31

$20,000,030

500,000

and

Beane

(Wednesday)

Freiberg Mahogany Co
&

Co.,

Inc.;

Russ

and

450,000

Co.)

Common

Co.,

185,000 shares

$1,500,000

shares "of

Rauscher,
of

stock

for

every

100 shares

12,000 Cumulative (fully-paid) In¬
Certificates, aggregating $12,000,000. r

Office—Newburgh,

Underwriter—None.

Food Mart, Inc., El Paso, Texas
Sept. 18 filed 90,337 shares of common stock (par $2)
being offered for subscription by common stockholders
of record Oct. 9, 1956 at the rate of one new share for
each eight shares held; rights to expire on Oct. 23, 1956.
Price — $17.50 per share.
Proceeds — For expansion,

and working capital.
Hammill & Co., New York.

if Freiberg Mahogany Co.

Underwriter—Shear-

(10/31)

filed

Oct.

and

$2,000,000 of subordinated debentures due
450,000 shares of common stock (par 10 cents),

which

$1,500,000 of debentures and all of the stock
publicly in units of $500 of debentures
""and 150 shares of stock; the remaining $500,000 of deben¬
to be offered

are

tures

sold

75%

Texas

Industries, Inc., which owns
outstanding common stock.
by amendment. Proceeds—From

Freiberg's

be supplied

for working
capital, etc., and from sale of debentures to Texas Indus¬

retire

subordinated

promissory note payable
Orleans, La.
Under¬
writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas;
and Russ & Co., Inc., San Antonio, Texas.
to

latter

the

Genco

firm.

Oil

Office—New

Co., Inc.

Aug. 24 (letter of notification) 55,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—For oil
development expenses.
Office — 1907 Broadway Ave.,
Scottsbluff, Neb.
Underwriter — Edward C. Colling,
Scottsbluff, Neb.
; General Credit, Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrants

purchase

160,000

stock, to be offered in units of

Price—$500

per

participating preference
$500 of debentures and 40

unit.

Proceeds—For

expan¬

and working captal.
Underwriter — None named.
Offering to be made through selected dealers.

$15,000,000

General Tire & Rubber Co., Akron, Ohio
July 27 filed 26,068 shares of $5 cumulative preference

(Monday)

between

Bonds

$1^,500,000

(Tuesday)

invited)

December

$15,000,033

and

...Debentures
$30,000,000

December
Power
to

(Tuesday)

Light Co.—

Invited)

New England

beuween

Bonds

$15,000,000

1957

and

invited)

January 15, 1957

$2G,0jO,uU0

Debentures

$35,000,000

(Tuesday)

Louisiana Power & Light Co
(Bids

invited)

about

common

"promissory notes of Carlon Products Corp.
The exchange offer will be subject to acceptance by
owners of all of the outstanding $1,060,000 notes and
by
not less than 39,400 of the 68,837 shares of Carlon stock.

Bonds
$20,000,000

Jan.

Uranium

Corp.

(N. J.), New York

filed

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Underwriter—None. Maurice Schack, Middletown, N. Y.,
Is President.

Statement effective March 11.

Gold Mountain

(Tuesday)

Tel. & Tel. Co....

(Bids

(p?r $100) to be offered in exchange for

General

Texas Eastern Transmission Corp
Debentures
(Dillon, Read &, Co. Inc.) $40,00|3,000

Florida

stock

stock and 6%

Underwriter—None.

(Monday)

Pierce

debentures

sion

.Bonds

invited i

Light

invited)

January

Debentures & Common

Fried;ichs

and

Industrial Fund, Inc., Denver, Colo.
(by amendment) an additional 62,500 Sys¬
(period payment) Investment Plans, aggregat¬

warrants.

(Tuesday)

Michigan Bell Telephone Co

(Bids

(Lazard Fteres & Co. and The First Boston
Corp.)

LabouLsse,

Hay den,

snares

American & Foreign Power Co., Inc..

Weil,

Power
to

r.Common
Pierce,

Stone

$10,000,000

$6,000,000

Lynch,

Dallas

(Bids

Preferred

Co.,

if Florida Fiber Processors, Inc.
Oct.
8
(letter of notification) 399 shares of common
stock
(no par).
Price—$500 per share.
Proceeds—To
purchase or lease building; for machinery and equip¬

Bonds

December

Pacific Lighting Corp
(Btyth

$1,000,030 sha.es

(Tuesday)

invited)

basis

$28,000,000

EST)

(Friday)
Common

December 3

Preferred

(Bids

November

(Tuesday)
Bonds

Carolina Power & Light

(Bias

Ohio Power Co

(Howard,

(Bins

s.iares

$1,250,0-0

Co...
(Bids

(Merrill

—o'

.Common
&

tunncf

...Common
330,0-0

Inc
Fuller

Beane)

rierce,

Lyncn,

$165,000,000

$2,160,(300

$1,125,000

__u

Pierce Fenner &

about

November 20

iBids

United Cuban Oil,

Ohio

Co.,

and-Merrnl

Texas Power & Light Co

Debentures & Common

Krensky

Debentures

—

Co.

Beane)

Common

(Van Alstyne, Noel & Co. and Johnston, Lemon & Co.)

(Arthur

Chase Manhattan Bank...

Common

Model, Roland & Stone)

Window Corp

(Offering to stockholders—to be underwritten)

$a,uc(/,0ud

Hartfield Stores, Inc
Miami

650,000

November 16

:____Debentures

oo.)

Common

Corp
&

Corp..

Co. Corp.

Oil

Barney

lamiui,

$5,000,000

ACF-Wrigley Stores, Inc
(■alien

(Thursday)

Inc

Co.)

Syracuse,

10 filed

vestment

to stocKno±ue..$ ox roremost Dairies, Inc—
underwritten by Allen & Co.
and Dean Witter &

Debentures

October 29

$3,000,000

$60d,0u0

Corp.
Brothers)

iBonds

EST)

a m.

November

Lucky Stores,

Common

Seangut)

East,

sale of units to retire short-term loans and

Bonds

$50,000,000

Power

Proceeds—For working

Boulevard

if Financial

Price—To

Gas

EST)

a.m.

the

tematic

about

(Wednesday)
&

share.

Erie

held; rights to expire 30 days after date
of offering.
Price—At par ($1 per share). Proceeds—•
For general corporate purposes.
Office—1055 Stewart
Ave., Garden City, N. Y. Underwriter—None.

(offering

$1,500,000

Developments, Inc

(Lehman

(Laird

Common

;

(Whitehall Securities

(Bids

$1,000,000

Holiday Oil & Gas Corp

holders

tries

(Thursday)

Law & Co.,

$8,000,000

ioO.UJO

ou.i

new

of class A stock

Common
a

November 14
Keith

October 25

Underwood

Incorporated)

Vincent,

..Debentures

and

(Monday)

$55,000,00)

Corp

(Ucuxge

$1,000,000

Inc.
J.

per

123

equipment

Debentures & Common

^uroon

American Discount Co. of Georgia.....Debentures
(Interstate Securities Corp.; JonCSlSh, "Lane,
Sya^e

Lithium

one

Manufacturing & Engineering Corp.
(letter of notification) 198,900 shares of class B
stock to be fpffered for subscription by stock¬

capital

son,

Common
Co.)

Centers Corp.
(Blair & Co.

Bonds

and A. M.

Common

(Thursday)

Aaron

(Bids

Co.;

November

...Preference

Corp.)

Tne

Inc.

Co.

-•

$aoi,3U0

ou.i

Oct.

1971

$d*0,0o0

Ripley & Co. Inc.)

Aircraft

Ailyn

Merrnl,

$5,000,000

Pyramid Productions, Inc

Corp

Boston

oo.;

underwritten 'by

(Wednesday)

Common

National Steel Corp
(r>.iihn,

Common

Equip. Trust Ctfs.

noon

Houston Natural Gas

Inc.)

November

(E.

Central of Georgia Ry

72,000, shares

Peerless Life Insurance Co

(Wednesday)

Beneficial Standard Life Insurance Co

j.nc.1

Underwriter—None.

ment, and for working capital, etc.
Preferred

of Cleveland.

tnewoo*^

October

$7,305,000

(Monday)

stockholders—tso

Morgan

Corp..,

Repute

National City Bank

Equip. Trust Ctfs.

invited)

November 5

$40,00J,0j0

Bonds

a.m.

Co.)

underwritten

—

1956 at the rate

ing $75,000,000, and

Common
263,400

(oencra;

..Common

si.arcs

30,000

Detroit

(Bids

(Territory of)

■

Common
underwriting)

Consolidated Edison Co. of New York, Inc.__Bonds
(B.ds

Corp

Office

10,

shares held; rights expire on Nov.

Federal

Oct.

$15,000,000

Stanley

Dodge

Co..

170,^00

Debentures

Brothers)

stockholders—to

Goduard

(Tuesday)

CDT)

(Thursday)

Pittsburgh & Lake Erie RR.

by J.

Parish)

Corp..

Service

Loyal American Life Insurance Co., Inc.1 .Common
&

$35,000,600

Preferred

stockholders—no

C.____Ctfs.

$1,000,003

Co.)

Gas

(Offering

Washington, D.

Lemon

Com.

debentures

November

Allied

Mobile

Debentures &

Co., Inc.)
$2,000,000
40,000 shares of stock

Debentures

(Kidder, Peabody & Co.; Eastman Dillon, Union Securities &
Co.; and Merrill Lynch,0 Pierce, Fenner & Beane) 100,000 shares

(Lehman

October 22

Commission

and A. E. Ames & Co., Inc.)

Texas Power & Light

(Friday)

Vvebber,

Debentures
350u,0u0

Oct.

seven

Price—$10

capital.

(The First Boston Corp.

$2,640,000

1956.

(Quincy Cass Associates)

Minneapolis, St. Paul & Sault Ste. Marie

stock

Proceeds—To

(letter of notification) 25,000 shares of common
(par $6) to be offered for subscription by stock¬

share for each

NEW-ISSUE

common

loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Viekers Brothers, New York.

$2,000,-

working capital.

Co., Midland, Mich.

common stock
(par $5)
subscription by employees of the com¬

repay,

(11/5-9)
Oct.

Securities

pany

1957 at

Underwriter—Columbia

150,000 shares of

to be offered for

common

chase

Chemical

Aug. 27 filed

Mining Corp., Denver, Colo.

2,500,000 shares of 6% convertible nonpreferred stock, first series (par $1), and
purchase 500,000 shares of common, stock

ploration, development and acquisition of properties and
for

Dow

filed

cumulative

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock (par on#
cent). Price — 10 cents per share. Proceeds — For ex¬

effective.

Oil

Lodge, Inc., Durango, Colo.
5,000 shares of class A voting common
$1), 295,000 shares of class B non-voting
common stock (par $1), and $700,000 of 4%
debentures
due Dec. 31, 1975, to be offered for sale in the States
Aug.

stock

filed

(par

Continued

page

(1668)

The Commercial and Financial
Chronicle

Thursday, October 18, 1956

Continued

from

—At

page

For

Texas and Colorado in units

of 50 shares of class A

shares of class B stock and one $7,000
debenture. Price—$10,000 per unit.
Proceeds—For pur¬
chase of property, remodeling of present main building,
for new construction and working capital.
Business—
Operates year-round resort hotel. Underwriter—None.
2,950

stock,

it Great Basin Uranium Corp.
common

stock

(par $1).
Price—50 cents per share. Proceeds—
mining expenses. Office—25 Fremont St., Las Vegas,

For

Underwriter—None.

Nev.

Growers Container Corp.,

Salinas, Calif.

& Sons,

Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stoc-k (par $100). Price—$98 per share.
Proceeds

fiartfield

Oct.

expenses

Stores,

(10/29-11/2)

Inc.

240,000 shares of common stock (par $1).
Price—$9 per share. Proceeds—To certain selling stock¬
Underwriter—Van

Alstyne, Noel & Co., New
York; and Johnston, Lemon & Co., Washington, D. C.
•

Hawaiian Electric Co.,

Ltd., Honolulu
Sept. 21 filed 77,000 shares of common stock (par $20)
being offered for subscription by common stockholders
at

rate

Oct.

one

new

1; rights to expire

for

each

Nov. 5.

held

Price—$20 per share.

Proceeds—For plant expansion program.
None.

Underwriter—

•
Holiday Oil & Gas Corp. (10/25)
Sept. 21 filed 500,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To repay bank
loans; to drill some 36 proven locations on now produc¬
ing leases; and for working capital.
Office—Arkansas

City, Kan.

Underwriter

—

Whitehall

Securities

Corp.,

Natural

Gas

Corp.

(10/24)

Pipe Line Co. to be purchased from The At¬

lantic

Refining Co., according to purchase agreement
signed Aug. 10, 1956. Underwriter—The' First Boston
Corp., New York.
it Incorporated Investors, Boston, Mass.
Oct. 11 filed (by amendment) 2,400,000 additional
shares

common

stock.

Price

—

market.

Proceeds—For

investment.

it Indian Valley Chemical Co.
Oct. 8

(letter of notification) 300,000 shares of
—

—

International Bank of

Washington, D. C.
(10/22-26)
Sept. 28 filed $1,000,000 of time certificates, series
B, C
and D. Price—At 100% of
principal amount. Proceeds—
For working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C.

outboard cruisers.

Office—471 N. E. 79th Street.
Fla. Underwriter—Atwill & Co., Miami

(F. L.)

Co.

and

new

stock

for each 30 shares held.

Price—$40

—For working capital, etc.
Neb. Underwriter—None.

per

share.

promotions and operating
Scenic Highway, Lake

June
one

for

filed

2,500,000. shares of common stock (par
Price—$1.50 per share. Proceeds—To acquire
$2,400,000 the Chavin lead-zinc-copper-silver mine
cent).

located in South Central
Peru, and for general corporate
purposes.
Underwriter — Gearhart &
Otis, Inc., New
York. Offering—Postponed.
Mission Appliance
Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of
preferred
stock (par $20) and 29,900 shares of
common slock (par
$5) to be offered in units of one preferred and lDur com¬

Proceeds

Office—1342 M St., Lincoln,

mon

shares.

Price—$40

Lithium Developments, Inc.
June 21 filed 600,000 shares of

record

shares held;

supplied

Price—$1

per

and

Lorain
Oct.

stock
of

Telephone Co.
(letter of notification)

4,994 shares
(no par) to be offered to stockholders
share

one

share.

per

tions

for

each

Proceeds—To

reimburse

basis

for

addi¬

record Oct.

offered

for

subscription by

ment.

15, 1956 at the rate of

Proceeds—To

stockholders

common
one

share for

new

Price—To be supplied by amend¬

increase

capital

and surplus. Un¬
Co., Inc., Boston, Mass.,
Thornton, Mohr & Farish, Montgomery, Ala.
it Lucky Stores, lnc.r San.JLeandro, Calif. (11/15)

derwriters—J.

Goddard

and

Oct.

^to

filed 630,000 shares of
offered for subscription

Foremost

Dairies,

Inc.,

Stores share

for each

12%

stock

held.

Price—To

common

stock

stockholders

common

tne

ratio

shares of

(par $1.25)

one

Foremost

Lucky

common

be supplied

by amendment. Pro¬
ceeds—To Foremost Dairies,
Inc., the selling stockholder.
Underwriters—Allen & Co., New York, and Dean Witter
& Co., San Francisco, Calif.

common

(par 50 cents).
steel

and

alumipum specialty products.

Montague, Inc.,

William

Under¬

Street,

New

Madison Gas & Electric
Co., Madison, Wis.
Sept. 10 filed 68,334 shares of common stock
(par $16)
being offered for subscription by common stockholders
Oct. 1, 1956 on the basis of one new
share for
shares held; rights to expire Oct. 29: Price—
share.
Proceeds
For construction

per

—

program.

ceeds—For

capital.

Office—

Underwriter
Co., Inc., Palm Beach, Fla.

Income

net asset

of such

on
properties; repayment of ad¬
and development and
working cap¬
Peyton Bldg., Spokane, Wash. Tinder-

writer—Standard Securities
Corp., Spokane, Wash

Aug. 24 (letter of notification)
120,000 shares of common
stock (par
$1). Price—$2.50 per share. Proceeds—For
development of oil and gas. Office—130 South
Fourth
St., Las Vegas, Nev. Underwriter—Mountain
curities

States Se¬

Corp.,

same

★ Matheson Co., Inc.
Oct. 8 (letter of
notification) 13,375 shares of 6% cumu¬
lative preferred stock.
Price—At par ($20 per
share),
plus accrued dividends. Proceeds—For
expansion, equip¬
ment and
working capital. Office—932 Paterson Plank
Road, East Rutherford, N. J.
Underwriters
Mohawk
Valley Invos'Jng Co., Inc., Utica, N.
Y., and Security and
—

Bond

Co., Lexington, Ky.

1_Miami V®/irr*ow
Corp., Hialeah, Fla. (10/29-11/2)
Sept. 26 filed $750,000 of
10-year 6% convertible sinking
fund
debentures, due Nov. 1, 1966, and 150,000 shares
of

common

98V2%;

a'id

.tick
f

(par 50 cents).
$2.50 per

stock,

Price—Of debentures,
Proceeds—For

share.

one

new

Nov.

20.

for

each

Price—To

Proceeds—To reduce

bank

Mining Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares oi capital

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
National

By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—To
pay

June

stock

Federal

estate

taxes.

Office—800

Bankers

Irust

Bldg.,

Des

Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.
National Life of

America, Mitchell, S. Dak.

Sept. 21 filed 86,784.7 shares of

common stocx
(par $5)
subscription by each of the company's
23,279 policyholders on and as of July 31, 1956 at the rate
of IV2 shares of such stock and the balance of the shares

be offered for

exchangeable for Founders certificates and cou¬
issued by National Life as a part or feature of
life insurance policies.
Price—$7.5C per share.

pons

certain

Proceeds—For working capital and other
coiporate pur¬

Underwriter—None.

poses.

National Old Line

Insurance Co.
Nov. 15, 1955 filed 50,000 shares of class A

common

stock

(par

$2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office — Little
Rock, Ark.
Underwriter

Tenn.,

and

Equitable

—

New

York, N.

Securities

Corp., Nashville,
Offering — Indefinitely

postponed.
National Steel

Corp.

(10/24)

Oct. 4 filed $55,000,000 of first
mortgage bonds due 1986.
Price—To be supplied by amendment. Proceeds — For
construction program. Underwriters—Kuhn, Loeb &
Co.,
The First Boston Corp. and Harriman
Ripley & Co. Inc.,
all of New York.

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
stock

(par 3% cents). Price—10 cents per share.
For mining expenses.
Office — 345 South
St., Salt Lake City, Utah. Underwriter—Birkenmayer & Co., Denver, Colo.
mon

Proceeds

—

State

North Pittsburgh Telephone Co.
Sept. 12 (letter of notification) 6,000 shares of
stock to be offered to holders of

common

one

Sept. 15, 1956

the basis of

common

stock of record

new

share for each

four shares held. Price—At par ($25 per
share).
—To reduce demand note.

Proceeds

Address—Gibsonia, Alleg¬

heny County, Pa.

Underwriter—None.

it Nucelonics, Chemistry & Electronics Shares, Inc.
Oct. 9 filed 800 monthly investment plan
certificates,
aggregating $2,400,000. Underwriter — N. C. E. Shares
Distributor, of New York.
T)cean City Pier Corp., Berlin, Md.
$2,000,000 of 6% debenture bonds due July 1,
1976, and 4,000,000 shares of common stock (par one
cent) to be offered in units of one $100 bond and 209
Oct. 4 filed

construction

writer

—

and

Paul

Price—$300 per unit.

operation
Korns,

Proceeds

amusement

director,

Lt.

Sept.
1988.

bank

—

For

pier. Under¬

Johnstown,

Col. James A. Grazier of
Whaleysville
City, Md., is Chairman of the Board.
Ohio

city.

basis

by amendment.

shares of stock.

Matador Oil Co.

—

-Kinney Loan & Finance Co.
Sept. 11 (letter of
notification) $150,000 of 6% sinking
*und capital debentures, series A, due Sept.
1, 1971. Price

payment

vances; exploration
ital. Office—508

the

rights to expire

eum
.

•
Loyal American Life Insurance Co., Inc. (10 22)
Sept. 28 filed 230,000 shares of common stock (par $1)

stock (par one cent).
Price—10 .cents per shar?. Pro¬
ceeds—For mining expenses. Office—223
Phillips Petrol¬

property in Ohio and for other corporate pur¬
Office—203 West Ninth, St., Lorain, Ohio. Under¬
writer—None.

it Los Angeles Drug Co. (10/31)
Oct. 11 filed $500,000 of 6% convertible subordinated
debentures due Aug. 1, 1971. Price—At
par (indenominations of $500 and $1,000 each).
Proceeds—For.equip¬
ment, inventory and working capital.
Underwriter—
Quincy Cass Associates, Los Angeles, Calif.

Underwriter—None.

Feb. 9

For pur¬

—

Mormon Trail

Price—$25

company

Oct.

loans.

common

the

held.

now

poses.

Proceeds

machinery and equipment. Office—New Albany,
Underwriter—Lewis & Co., Jackson, M:ss.
* Mobile Gas Service Corp., Mobile, Ala.
(11/1)
Oct. 11 filed 30,000 shares of common stock
(par $5) to
be offered for subscription
by common stockholders of
Miss.

(10/25)

common stock
(par 10
share. Proceeds—For exploration
development and other general corporate purposes.
Office—Cleveland. Ohio. Underwriter—George A. Sea-

cents).

unit.

per

chase of

•

Wales, Fla.

bids has been set.

Minerals, Inc., New^York

Mascot Mines, Inc.
July 9 (letter of notfication)
280,000 shares of common
(par 17V2 cents). Price—25 cents per share. Pro¬

common

price equal
value of the Fund, plus a
sales load of
price. Proceeds—For investment.
Invest¬
ment Manager
California Fund Investment
Co., of
which John Kerr is also
President.

two

Underwriter—None.

Proceeds

Fund, Inc., Los Angeles, Calif.
July 30 filed 100,000 shares of capital stock
(par $1), of
which 9,300 shares will be
initially sold at $10.98 per
share. Additional shares will be
offered at a

8%%

rate

& Telegraph Co.
(letter of notification) 6,653 shares of common
(par $16%) to be offered to common stockholders
of record Sept. 17, 1956 on the basis of one new share
Oct.

$40

capital. Un¬
Gearhart &

July 27 (letter of notification) 110,000 shares of
(par 20 cents). Price—$2.50 per share.
sales

for

subscription by stockholders of record

at the
share held.

program.
Underwriter —
To be
competitive bidding.
Probable bidders:
& Co. Inc.; The First Boston Corp.;

by
Stuart

Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date

par)

each five

Co.

stock

to the

(no

stock

of record

Co'.

Kerr

stock

common

stock

Otis, Inc., both of New York.

Cook

for

1956

York 17, N. Y.

offered to

derwriters—McLaughlin, Cryan

No.

12,

writer—C.

Corp. of Florida

—To pay short-term loans and for
working

411

339,600 shares of

—

$3,000,000 of 6% convertible debentures due
Nov. 1, 1966. Price—100% of
principal amount. Proceeds

—Anderson

filed

pay-

working capital. Un¬
Co., Inc., Chicago, 111.

construction

Halsey,

for each
Price—To stockholders, $10 per
share; and to public, $15 per share. Proceeds—For ex¬
pansion and working capital. Underwriter—None. Pub¬
lic offering will be made by employees of the
company
and qualified licensed dealers

tures

Oct. 4 filed

—For

be offered

for

determined

Underwriter—None.

Price—75 cents per share. Proceeds
—For general corporate purposes. Business
Manufac¬

purchasers of preferred
stock at 10 cents per share at rate
of ten shares for
each preferred share
bought.
Proceeds—For working
capital.
Office—Fort Lauderdale, Fla.
Underwriter
None.
Jacobs

St., Jacksonville, Fla.

and

Office—

it Life Insurance Co. of South Carolina
Oct.

stock

Aug. 24 filed $515,000 of $60 cumulative preferred stock
to be offered in
un^ts of $1,000 each and 5,150 shares of
stock

working capital.

Macinar, Inc.
July 23 (letter of notification) 400,000 shares of

Miami,

Beach, Fla.

common

extrusion press and

1612 E. 8th

pur¬

Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans

common

(par 50 cents) to be offered to stockholders. Price
—$2 per share. Proceeds--For purchase of and installa¬

—

International Shipbuilding Corp.
Aug. 9 (letter of notification) 100,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For general corporate
purposes. Business—Manufactures

Investment

ments of indebtedness and
general
derwriter—Arthur M. Krensky &

stock

Macimiento Uranium Mining Corp.
July 31 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per sha^e.
Proceeds—For current liabilities,
exploration, adminJstrative expenses and
working capital. Office
Kimo
Bldg., Albuquerque, N. M. Underwriter—Carroll &
Co.,
Denver, Colo.

common

stock.
Price
At par ($1 per share). ' Proceeds
For
working capital. Office—400 Montgomey St., San Fran¬
cisco 4, Calif. Undewriter—None.

Joa

it Lenahan Aluminum Window Corp.
(letter of notification) 150,000 shares of

each three shares held.

Oct. 1 filed 100,000 shares of convertible
preference stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—As part payment for all of the capital stock of
Houston

machinery and equipment and general corporate
poses, including inventory and accounts receivable,

—
911 Tenth St., Greeley,
Underwriter—Wachob-Bender Corp., of Omaha

New York.

Houston

Proceeds—

Oct. 9

filed

holders.

each.

right, New York City.

incident to commercial grain
Underwriter—W. R. Olson Co., Fargo, N. D.

business.
•

For

—

$1,000

Lincoln Telephone

May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬
rate purposes.
Underwriter—None.
(R. F.)

Lincoln, Neb.

Sept.

Sept. 20 (letter of notification) 44,000 shares of common
stock (par $1).
Price—$6.75 per share. Proceeds—For
working capital and unassigned surplus.
Office —119
West Rudisill Blvd., Ft. Wayne, Ind.
Underwriter —
Northwestern Investment, Inc., Ft. Wayne, Ind.

Gunkelman

and

Great Northern Life Insurance Co.

denominations

working capital. Office

Colo.

tion of

Sept. 28 (letter of notification) 600,000 shares of

par

and

Pa.

Ocean

Power Co.

filed

(10/30)
$28,000,000 of first mortgage

bonds due
Proceeds—For construction program and to
repay
Underwriter—To be determined

loans.

by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Kuhn,

Loeb & Co.; Eastman Dillon, Union Securities &
& Hutzler (jointly); Harriman

Co., and
Ripley &
Co., Inc. and Stone & Webster Securities Corp.
(jointly).
Bids—To be received up to 11 a.m.
(EST) on Oct. 30.

Salomon Bros.

Ohio Power Co.
(10/30)
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
,

writer—To be determined by competitive
bidding.
The First Boston
Corp.; Blyth &

able bidders:

Prob¬

Co., Inc.;

Number

184

Volume

5578

The Commercial and Financial Chronicle

...

Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co.

—For

and Salomon Bros. & Hutzler

Boston

(jointly); Harriman Ripley
& Co., Inc.* and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—To be received up to 11
a.m.
(EST) on Oct. 30.
if Orefield

amendment.

Proceeds
be

For

—

later.

named

Tzo-

Loan

Co.

Sept. 17 (letter of notification) $250,000 of 6% renewable
(upon demand) Sept. 10, 1961. Price
face

each).

amount

Proceeds

St., Miami, Fla.
Miami, Fla.

(in

denominations of $100 and $500
For working capital. Office -— 2233

—

River

North Broad

St., Philadelphia, Pa. Underwriter—Walnut
Securities Corp., Philadelphia, Pa.
if Pacific Lighting Corp. (10/30)
10 filed 200,000 shares of cumulative

Oct.

preferred

stock

Price

par).

(no

—

Aug. 29

250

ticket

race

supplied by

machines; for

Under¬

Madison

derwriter—Wistor
York

New

purchase

Insurance Co.

Life

Price—$25

(no par).

general corporate

each

the

of common
share.. Proceeds — For
—
1310 Gulf States

Pocahontas

clared effective

been

The

and

Underwriter—

offer

will

•

mining expenses.
Securities, Inc., Denver 2, Colo.

• Public
Oct.

Service

filed

Electric

com¬

received
•

Drexel
up

to 11

Co.

Underwriter—SkyliD#

a.m.

Puerto Rican Jai

July

filed

bonds due

$1)

(jointly).
(EST)

(11/14)

Bids—Expected
Nov.

1968, and 300,000 shares of
a

Price—May be $675

construction

fronton

and

stock.
For

unit.

stock
100

Proceeds

activities.

Pyramid Productions, Inc., New York (11/8)
Sept. 27 filed 220,000 shares of common stock (par $1),
of

which 200,000

shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as.a
$173,180 debt to Trans-Union Produc¬

tions,

and

for

working

capital.

Underwriter—E.

Business—Tele¬

Aaron

Co., New

York.

Quebec

Oct.

Hydro-Electric

10 filed

1, 1981.

(11/14)

bonds due Nov.

for
by

new
com¬

Probable bidders: Halsey, Stuart & Co.

Lewiston,

Inc.,

Secu¬
& Co.,
to 11
Mass.

Idaho

(25

par

cents

per

share).

$20), with warrants to purchase 68,323 shares of!
stock (par $2.50).
Price-^At par. Proceeds—

(par

working capital and retirement of bank loans.

For
"

General

Insurance

Proceeds—

50,000

are

to be offered

Atlanta,

Co.,

common

Ga.

stock (par $5), of

offered

25,000 shares

are

Commission

(10/31)

$35,000,000 of series P debentures due Dec.
Price—To be supplied by amendment. Proceeds

Un¬

derwriters—Schneider, Bernet & Hickman, Inc., Dallas,

of Lincoln, Neb.; Beecrof^
Boettcher & Co.; Denver,
Colo.; and Dewar, Robertson & Pancoast and Austin,
Hart & Parvin, both of San Antonio, Texas.
First Trust Co.

The

Tex.;
Cole

Co.,

Topeka,

Kan.;

Santa Fe, N. ML

Southwestern Resources, Inc.,
June

1,000,000 shares of common stock

filed

(par 2$

cents). Price—$5 per share. Proceeds—To exercise oj>tions, purchase additional properties and for general,
corporate purposes.
Underwriter—Southwestern Secu¬
rities Co., Dallas, Texas.
Southwide Corp., Anniston, Ala.

Sept. 12 filed 450,635 shares of common stock (par $1},.
of which 211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A
Capital Fire & Casualty Co. and common stocs:
Investment Corp.
Price—$2 per share. Pro¬

stock of

Allied

Allied firms

of U. S. Government bonds. Under¬
a selling commission will be allowed
dealers for sales effected by them. Elvin C. McCary,

and

for

purchase

writer—None, but
to

Anniston, Ala., is President.
Pressed

Standard

Steel

(10/19)

Co.

filed 52,050 shares of common stock (par $1)
25,800 shares are to be offered for subscription,
by common stockholders of record Oct. 16, 1956 on the
basis of one new share for each 20 shares held; rights

Sept. 27

of which

The remaining 26,250 shares
Price—To stockholders to besupplied by amendment; to employees, at market. - Pro¬
ceeds—For
expansion program and working capital
Business—Manufactures precision metal fasteners; work
benches, shelving and other shop equipment.
Under¬
writer—Kidder, Peabody & Co., New York.
to

expire

Nov. 1/1956.

will be offered employees.

^Standard Register Co., Dayton,

(10/29)

Ohio

stock (par $1), of
300,000 shares are to be offered to public and
40,000 shares to officers and employees.
Price—To be
supplied by amendment. Proceeds—From about 150,000
shares to selling stockholders; and from about 190,000
shares to company to be used for expansion program.
Underwriter—Merrill Lynch, Pierce, Fenner & Beane,
Oct. 10 filed 340,000 shares of common

which

York.

New

Statesman

•

Insurance

Indianapolis, Ind.
(par $2.50)

Co.,

July 3 filed 200,000 shares of common stock

employees of AutomobileUnderwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at
the State Automobile Insurance Association."
offered

agents

and

Price—Proposed maximum is $7.50 per share. Proceeds
a certificate of authority from the Insurance
business.

—To obtain

Commissioner of the State of Indiana to begin

Address—P. O. Box 496, Lewiston,

expenses.

Texas

68,323 shares of sinking fund preferred stock,

common

publicly;

20,714

in exchange for 10,357 shares of

to be offered to certain other per¬

Price—To

public, $14.50 per share; and to certain
persons, $13 per share.
Proceeds—To pay bank loan.
Underwriter
The Robinson-Humphrey Co., Inc., At¬
lanta, Ga. Offering—Date indefinite.
Q
—

Underwriter—None.

Statement withdrawn on

Oct. 5.

Sterling Precision Corp.
July 9 filed 379,974 shares of 5% cumulative convertible

preferred stock, series C, being offered for subscription
by holders of outstanding common stock and series A.
and series B preferred stock in the ratio of one share
of new preferred stock for each four shares of series A
or series B preferred stock and
one share of new pre¬
ferred for each 10 shares of common stock held as of
27,

Sept.

1956

(-with

oversubscription

privilege);

rights to expire on Oct. 29. Price — At par ($10 per
share). Proceeds — To repay a $1,400,000 note held by
Equity General Corp., a subsidiary of Equity Corp.;
to liquidate existing bank loans and for general coi-

Southern New! England

Telephone Co.
stock (par $25)
be offered for subscription by stockholders of record
Oct. 1, 1956 at the rate of one new share for each eight
shares held; right to expire on Nov. 2.
Price—$30 per
share. Proceeds—To pay advances from American Telephone & Telegraph Co. (approximately $15,800,000) and
for property additions and improvements.
Underwriter
—None. Offering—Delayed indefinitely by company on
Oct. 4. (See also next paragraph.)
Sept.

19 filed 679,012 shares of capital

Southern New England

Telephone Co.

Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par $25) to be issued to American

porate

for

Putnam

Blyth & Co., Inc.; White, Weld & Co.;

(3.23%)

Stevens

debentures.

(J. P.)

& Co., Inc., New York

June 28 filed $30,000,000

of debentures due July 1, 1981.

Proceeds—To re¬
4%% firri
mortgage bonds and $368,679 of 6% preferred stock of
subsidiaries. Underwriter—Goldman, Sachs & Co., New
Price—To be supplied by amendment.

short-term loans,

duce

to retire

$950,000 of

Offering—Indefinitely postponed.

if Sun Castle, Inc., Pompano Beach, Fla.
Oct.

1,598 shares of common stock (par $5) and
mortgage bonds due March 15, 1972

15 filed

registered 6%

(of $1,000 principal amount each).

Co.; Chas. W. Scranton & Co.,. and Cooley &

(jointly); The First Boston Corp.; Salomon Bros. &

subscribed

Latter already owns 137,640 shares
Sterling common stock, plus $1,800,000 of

its convertible

800

Frobable bidders:

13»

by stockholders.

York.

Co.

Niagara St., Buffalo

290,000 shares of the new preferred stock not

Telephone & Telegraph Co., which owns 21.61% of the
outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone & Telegraph Co.
by competitive bidding.

Office—1270

purposes.

Underwriter—None, but Equity General Corp. has

N. Y.

agreed to purchase at par, plus accrued dividends, up to

Underwriter—To be determined

Inc.;

vision releases.

•

of Salt

Co., also

Underwriter—None.

sons.

of options. Price—
Proceeds—To purchase real property and

Underwriter—Coombs & Co. of Wash¬

Bos¬

(letter of notification) 200,000 shares of common
Price—At

are

and

For

Office—

for issuance upon exercise

share.

per

$1).

$10 par common stock of Progressive Fire Insurance Co.;

Pyramid Development Corp., Washington, D. C.
July 27.(letter of notification) 300,000 shares of common
stock (par 10 cents), of which
25,000 shares are to be

mortgage notes.
ington, D. C.

Mines,

(par

—

First

repay bank loans and
Underwriter—To be determined

Southern

Juan, Puerto Rico.
Underwriters—Crerie & Co.,
Houston, Texas; and Dixon Bretscher Noonan, Inc.,
Springfield, 111.

Underwriter—The

Underwriter—Whitney

mining

Ida.

first mortgage

common

(par

Offering—Temporarily postponed.

Sept. 24 filed 95,714 shares of

$500 bond and
per

loans.

1986.^ Proceeds—To

Oct. 11

14.

stock

Co.

filed $3,000,000 of first mortgage

if Smith

San

reserved

bank

Corp., New York.

which

12-year

common

Inc.; Salomon Bros. & Hutzler; Stone & Webster
rities Corp. and Dean Witter & Co. (jointly); Blair
Incorporated. Bids—Expected to be received up
a.m.
(EST) on Nov. 14 at 49 Federal St.. Boston,

Alai, Inc.

$1,500,000

to be offered in units of

of stock.

Price—To be supplied by amendment. Proceeds

petitive bidding.

by competitive bidding. Probable bidders: Halsey,

and

Finance

construction.

Stuart & Co. Inc.; The First Boston Corp.; Kuhn, Loeb &
Co. and Lehman Brothers (jointly); Morgan
Stanley &
Co.

if Sierra Prcific Power Co.

and for construction program. Underwriter—To be deter¬

mined

Clinger, Inc., all of Wichita, Kan.

Southwestern Investment Co., Amarillo,

•

(10/30)

supplied by amendment. Proceeds — To
Schick Gifford, the selling stockholder.
Un¬

reduce

Oct. 11

first and refunding mortgage
Proceeds—To reduce bank loans

1986.

Pa.

500,000

City, Utah.
Lake City.

$50,000,000

bonds due Nov. 1,

Pa.

Security Loan & Finance Co.
July 17 (letter of notification) 200,000 shares of common
stock (p$r $1).
Price—$1.50 per share. Proceeds—For
expansion program. Office—-323 So. State St.. Salt Lake

Gas Co.

Philadelphia,

Inc.,

Seaboard

ton

Price—Five cents per share

Proceeds—For

filed

1, 1971.

Corp.

(letter of notification) 6.000.000 shares of

stock (par two cents).

Co.,

150,000 shares of preferred stock (par $7.50)
shares of common stock (par five cents) to

Schick Inc.

—To

if Procter & Gamble Co.

mon

Corp. of Indianapolis, Ind., for

Sept. 18 filed $15,000,000 of sinking fund notes due Oct.

11 filed 3,500 participations in the company's Profit
Sharing Dividend Plan, 3,500 participations in the Stock
Purchase Plan, and 100,000 shares of common stock (par
$2).

March 21

Lynch, Pierce, Fenner & Beane and
Hayden, Stone & Co., both of New York.„,,

Oct.

Uranium

Oct.

(each $10

Underwriter—None.

Federal

effective

Underwriter—

derwriters—Merrill

amount

Prudential

Proceeds—For

Florence

being convertible into one share of
being offered for subscription by stock¬
holders on the basis of $10 of debentures for each share
held as of Sept. 27 (with an oversubscription
privilege);
rights to expire on Oct. 15. Price—At par. Proceeds—
To
retire
$16,700 of outstanding debentures and for
working capital. Office—27 Chenango St., Binghamton,
N.

61.53%.

owns

State Securities

50,000

Oct.

stock)

common

of the outstanding common stock,

presently

core

Price—To

Advancing Corp. 7
Aug. 31 (letter of notification) $240,000 of 6% subordin¬
principal

share).

ceeds—For purchase of stock of Capital and

•

deposited for exchange by Nov. 30.

Sept. 1, 1966

Co.

per

Philadelphia,

de¬

Gil

($7.50

par

issued in connection with the merger of Paulsboro
Manufacturing Co. into Sandura Co., Inc.
Price—$10
per share.
Proceeds — For expansion, equipment and
working capital. Underwriter — Butcher & Sherrerd,

of the latter shares have

convertible debentures due

de¬

upon

Policy

ated

effective

(10 cents per share). Proceeds
including geological research and

Sandura

shares of Pittsburgh for

share.

common

if at least 85%

become

Price—At par

Oct. 8 filed

Office

basis of 2%

will

offering to residents of Indiana.

Pittsburgh Consolidation Coal Co.
Oct. 3 filed 2,678,697 shares of common stock (par $1)
to be offered in exchange for common stock of Pocahon¬
Fuel Co.

Offer

drilling,
core
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; ior working
capital and other corporate purposes. Underwriter —

(11/7-9)

Bldg., 109 North Akard St., Dallas, Tex.
Newborg & Co., New York.

tas

Ross

tal stock.

11,500 shares

per

purposes.

stock

common

Uranium, Inc., Denver, Colo.
Aug. 21 (letter of notification) 25,000,000 shares of capi¬

(letter

(letter of notification)

11,000 shares of class A
of class B

Engineering Corp., New York

Statement

Indiana

Samson

22, N. Y.

Peerless

O.)

shares*

which

None.

Avenue, New York 17, N. Y. Un¬
Smith & Co., 40 East 54th Street,

stock

518

and

posit of at least 90%

None.

Oct,

Price—At

stock.

Oct. 1 filed

(J.

Waldron

—For

•

Underwriter—None.

holders.

Herrick~&

of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
development of oil and gas property. Office—850 West
Hastings St., Vancouver, B. C., Canada. Underwriter—
20

Sept.

Ltd., Toronto, Canada

Oils

24 filed 750,000 shares of capital stock (par $1).,
Price—64V2 cents per share. Proceeds—To selling stock¬

Sept. 27 (letter of notification) 40,000 shares of common,

Sept. 10 filed 19,059 shares of common stock (par $1) to
be offered in exchange for common stock of John Waldron Corp. at the rate of one Ross share for each two

River Petroleums, Ltd.

if Peace

Union

Southern

Aug.

Southwest Grease &

Valley Finance Co.
(letter of notification)

Ross

for issuance of semi-blank race tickets;
working capital and general corporate purposes..

Office—527

and

U nderwriter—N one.

on a pro rata basis;
on Oct. 19.
Price—$6 per share. Pro¬
working capital.
Office—Davenport, Iowa.
Underwriter—Quail & Co., also of Davenport, Iowa.

machines

and for

additions

ceeds—For

oversubscription privilege);
Price—$18 per share. Pro¬
improvements to property..

ceeds—For

Equipment Corp.
of notification) 60,000 shares of com¬
(par $1). Price—$5 per share. Proceeds—For

construction

Dallas, Texas

rights to expire

(letter

stock

mon

each 12 shares held (with an

rights to expire on Oct. 30.

being offered first to stockholders

Pari-Mutuel

Southern Union Gas Co.,

purchase of new equipment and working capital. Office—220 W. Waterman St., Wichita 2, Kan. Underwriters—■
Small-Milburn Co.,
Inc., Brooks & Co. and Lathrop,.

writer—Blyth & Co., Inc., San Francisco and New York.

Aug.

also preceding para¬

(See

10.

14 filed 171,187 shares of common stock (par $1)
being offered for subscription by common stockholders
of record Sept. 26 on the basis of one new share for

Underwriter—Frank L. Edenfield & Co.,

stock

common

convertible

amendment. Proceeds—For construction program.

Oct.

Sept.

Oct.

debentures payable
—At

•

ir Re-Mark Chemical Co., Inc.
4 (letter of notification)
99,630 shares of class A
cumulative participating preference stock (par 80 cents).
Price—$1.75 per share.
Proceeds—For completion of a
sulphur mill; working capital, etc. Office—64 N. E. 73rd

panakis, of Miami,' Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders.
Oxford

a.m.

graph.)

150,000 shares of common
stock (par 10 cents).
Price—$2 per share; Proceeds—
To purchase plant and equipment.
Office—2505 Butler
Place, New York City. Underwriter—Hopp & Co., Pas¬
saic, N. J.

exploration

Michael

(EDT)

expected to be received up ta

Bids—Had been

if Redi-Food Co., Inc.
(Jet. 8 (letter of notification)

Mining Corp., Montreal, Canada

Underwriter—To

costs.

Hutzler.

900,000 shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be

supplied

capital expenditures. Underwriters — The First
Corp. and A. E. Ames & Co., Inc., both of New

York.

15 filed

Oct.

(1669)

iTf

Price—At par. Pro-

Continued

page

The Commercial and Financial Chronicle

(1670)

Continued from page

Lincoln

ceeds—To construct and operate a resort motel and club
upon

None.
•

property in Broward County, Fla.
Underwriter—
Ernest C. Cassill is President and Treasurer.

Temco Aircraft Corp.,

Dallas, Texas (10/24)
of convertible subordinated
debentures due 1971.
Price—To be supplied by amend¬
ment.
Proceeds—For working capital.
Underwriters—
A. C. Allyn & Co., Inc., Chicago, 111., and Keith Reed &
Co., Inc., Dallas, Texas.
Sept.

$5,000,000

filed

Gas & Appliance Co. and Sweetwater Gas &
Equipment Co.; and stock and certain assets of Ransome
Co. of Nevada; to reduce short-term
indebtedness; and
for

working capital.

San

Francisco,

offered

Co.

Calgary Co., Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 25
cents).
Price—At market from time to time on the
American Stock Exchange or the Toronto Stock Ex¬
change

private

the selling stockholder.

sale. Proceeds—To A.
Underwriter—None.

Scott,

to buy

Underwriter—To

determined by competitive
Halsey, Stuart & Co. Inc.;

bidding. Probable bidders:
Kuhn, Loeb & Co., Blyth & Co., Inc., Kidder, Peabody
&
Co. and
Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Eastman Dillon, Union Securities & Co. and
Salomon Bros. & Hutzler (jointly); White, Weld & Co.;
Lehman Brothers, Drexel & Co. and Hemphill, Noyes &
Co. (jointly); The First Boston Corp. Bids—Expected on
about Nov. 20.

(10/31)
Oct. 16 filed 100,000 shares of cumulative preferred stock
(no par). Price—To be supplied by amendment. Proceeds
cpnstruction

Underwriters

Kidder,
Peabody & Co., Eastman Dillon, Union Securities & Co.
and Merrill Lynch,
Pierce, Fenner & Beane; all of New
program.

York.

-—

Venture

ment.

Togor Publications, Inc., New York
(letter of notification) 299,700 shares of

March 16

record

share.

Proceeds

For

—

writers—White, Weld
curities
•

Co.

and

Under¬
& Webster Se¬

program.

Stone

Peabody & Co., New York. Statement withdrawn.
now plans stock offering to shareholders.
"Prospective Offerings.")

Chemical & Materials
Corp.
May 25 filed 200,000 shares of common stock (par $10).
be
supplied by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
—Alien & Co., Bache & Co. and
Reynolds & Co., Inc.,
all of New York. Statement
may be amended with of¬
fering to be made soon.

Cuban Oil,

Inc. (10/29-11/2)
Aug. 29 filed 2,573,625 shares of common stock
cents), of which 2,000,000 shares are to be

(par 10

if Washington Ytong Corp.
(letetr of notification) 3,000 units called "Escrow
Receipts." Price—$100 per unit. Proceeds—For corpor¬

fering to 1,000,000 shares).
ceeds—For development and
exploration costs. Office—
Los Angeles, Calif.
Underwriter—S. D. Fuller &
Co.,
.

Conditioning Corp.

granted options to acquire the
remaining 500,000 shares
for reoffer to the public. Price—At
market prices.
ceeds—For working capital and

general

corporate

Pro¬
pur¬

Office—Philadelphia, Pa. Underwriter—Mortimer
&

Co., Inc., New York.

Universal Finance Corp.
Aug. 24 (letter of notification) 27.272 shares of 70-cents
cumulative preferred stock
(par $5) and 13,636 shares of
common

stock

sisting of
common.

one

(par 15 cents) to be offered in units
share

Price—$11

preferred and

per

unit.

one-half

con¬

share of

Proceeds—For

working
capital.
Office
Gibraltar "Life Bldg., Dallas, Tex.
Underwriters—Muir Investment Co., and Texas
—

National

Corp., both of San Antonio, Tex.
Universal

Fuel

Van Horn Butane Service
28 filed 75,000 shares of

preferred

stock, series A

plied

amendment.

Liquid

Gas

cumulative

(par $25).

convertible

Price—To be sup¬

acquire

Co., Teton Gas
Co., General Equipment Co., The McHade

ofefirst

group

Underwriter—Pre-

held.

& Illinois Midland Ry.

mortgage bonds from the Commission's bidding

requirements. Proceeds—To retire $7,450,000 of 4%%
unsecured serial notes and to allow the company to buy
299 box cars which it now leases.
Underwriter—Halsey,

Chattanooga, Tenn.

Sgapt. 29 it was announced the ICC has denied an ap¬
plication by this company for an exemption of $9,000,000

Lake

Stuart

Co. Inc.,

may

be included among the bidders

for this issue.
•

Cosden

Petroleum

Sept. 20 it
chase
Oil

Co.

Cosden

and

retire outstanding

Refining

Co.

;

stock

Appliance

L. P. Gas

Co.,

^Dallas

—For mining expenses.
Lake City, Utah.

Salt

Q£t. 10 it

to pur¬

Anderson-Prichard

Co. of

Texas, a subsidiary of
for 350,000 shares of
purchase is subject to SEC

California,
The

Office—547 East 21st South St.,

ture

(no par)
and

to be

offered

in units

three shares of stock.

Proceeds—For

construction
recreation

and

Price

of
—

$400

$500

Wilson &

unit.

received

company.

fund

Proceeds

—

—For

K'.':

75,000 shares of

common

'Vt*

P rospectuses
Public

/>!
stock

$3) at $11 per share (the latter for the account
selling stockholders). Proceeds—From sale of deben¬
tures, for expansion and working capital. Business—A

€

Literature

nstitutional Pieces

Notes

and

Agreements

atements

Proxy S

(par

R elations
I

N. Y.

;

wi':

haul

•

K'4I

announced

par and

t'iffior Finest Quality Printing

Harriman Ripley & Co., Inc.

1, 1971 at

ndentures

Offering—Indefinitely postponed.

motor

common

carrier

operating over
miles or routes in
Illinois, Indiana, Michigan and
Office—Grand Rapids, Mich.
Underwriter—Paine,
ber, Jackson & Curtis, Boston, Mass., and New

3,300
Onio.

Web¬
York,

Boulder

Acceptance Corp., Boulder, Colo.
16 it was announced company plans to offer and
3,000,000 shares of its common stock. Price—At par
($6 per share). Proceeds—To construct hotel; set up in¬
stalment loan company; and for
working capital and
sell

general corporate purposes.
ment

de¬

U^ion Securities & Co. (jointly); Blyth & Co., Inc., and
Th^ First Boston Corp( jointly). Offering—Not expectedi until early in 1957.

corporation plans to issue and
sell $1,000,000 of 6% convertible subordinated debentures
due Oct.

Underwriter—To

man

+ Associated Truck Lines, Inc.
was

program.

(jointly): Merrill Lynch, Pierce. Fenner & Beane: Leh¬
Brothers; W. C. Langley & Co. and Eastman Dillon,

Offering—

Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and
Kuhn, Loeb & Co. (jointly); The First

construction

Peabody & Co. and Harriman Ripley & Co., Inc. (joint¬
ly)';. Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.

Prospective Offerings

Light Co.

by comeptitive bidding.
Probable bidders:
White, Weld & Co. and Shields & Co. (jointly); Kidder,

Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
sell in December
$24,000,000 of first mortgage bonds.

Oct.

Dec. 3.

termined

redeem

derwriters—Smith, Barney & Co.; Glore Forgan & Co.

Boston Corp.;

Aug. 13 it was reported company plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds

de¬

by amend¬
presently outstanding
first mortgage
bonds, to repay bank loans and for ex¬
pansion program.
Business—Meat packing firm.
Un¬

ment.

Power & Light Co. (12/3)

Delaware Power &

Co., Inc.

28 filed $20,000,000 of 20-year sinking
bentures'due 1976.
Price—To be supplied

about

bidding. Probable bidders: Halsey, Stuart
The First Boston Corp.; Salomon Bros. &
Kidder, Peabody & Co. and Merrill Lvnch,
Fierce, Fenner & Beane (jointly); Eastman Dillon, Union
Securities & Co.; Kuhn, Loeb & Co.; Equitable Securities
Corp.; Biair & Co. Incorporated and Baxter, Williams &
Co. (jointly); Lehman Brothers.
Bids—Expected to be

working capital. Busi¬
Underwriter—None;

Aug.

require

Hutzler;

center.

offering to be made by officers and agents of

will

^ Co.. Inc.;

deben¬

per

which

b$/?competitive

Mountain Corp., Boston, Mass.
Aug. 13 filed $800,000 of 6% subordinated cumulative
debentures due Dec. 1, 1976, and 6,000 shares of common
stock

stock

was reported company plans to issue and sell
$12,500,000 and $15,000,000 first mortgage 30yefer bonds. Proceeds — To repay bank loans and for
construction program.
Underwriter—To be determined

Wildcat

the

from

between

Underwriter—Empire Securities

Corp., Salt Lake City, Utah.

stock.

common

Co.

Oil

Standard

Oil

Corp.

announced company has agreed

was

Col-Tex

Standard

of banks, will

July

Proceeds—To

Appliance

^Chicago

short

& Chemical
Corp.
May 17 (letter of notification) 300,000 shares of
capital
stock. Price—At
par ($1 per share). Proceeds—For min¬
ing expenses. Office—825
Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc.. Pittsburgh, Pa.

Sept.

Yoik.

Underwriter—None.

and Hallgarten &
Co., all of New York City.
Indefinitely postponed.

of the unsold portion of the first 50,000
shares, are
to be offered to the
public; and the underwriter will be

Burnside

each

underwritten by The First Boston Corp.,
/ 1

was

d^ys. As part of the contract, Anderson-Prichard and
Standard of Texas have agreed to sell the Cosden com¬
mon stock to the public.
Underwriters—Dean Witter &
Co. and Giore, Forgan & Co., New "York.

any

pany
w

for

offering to stockholders of Bank of the Manhattan

Office—1700 21st Ave., South, Seattle 44,

purposes.

Sept. 27 filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus

poses.

registration

offered

reducing proposed of¬
Price—$1.25 per share. Pro¬

(See

Oct. 3

ness—Mountain

publicly and 573,625 shares will be issued in exchange
for stock of Compania de Formento
Petrolero Ted Jones,

States Air

Com¬

pany

Sage Uranium Corp.
Feb. 13 (letter of
notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share).
Proceeds

Price—To

United

i/Chase

Manhattan Bank, New York (11/16).
was announced stockholders will vote Nov. 13
onMncreasing the authorized capital stock (par $12.50)
Mm 12,000,000 shares to 13,000,000 shares, the addi¬
tional 1,000,000 shares to be offered for subscription by
sfeokholders of record Nov. 15, 1956 on the basis of one

Oj£t. 3 it

Underwriter—Kidder.

White

Union

New York.

note.

series A and series B 5%
bonds, an^ for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co.. Atlanta, Ga.; and Equitable Securities
Corp., Nash¬
ville, Tenn. Offering — Temporarily postponed. Not

—

(amendment filed Oct.

demand

first mortgage

Underwood

con¬

Offering—Expected this week.

under

be used to

ment. Proceeds
For expansion and
working capital.
Underwriter—Lehman Brothers, New York.

secured

3-year unsecured 4^2% notes

Corp., both of New York.

United

cumulative

ie&£ds — To selling stockholders. Office — Wisconsin
K&pids, Wis. Underwriter—Loewi & Co., Milwaukee, Wis.

Proceeds—Together with proceeds from private sale of
$1,500,000 43/4% first mortgage bonds and $900,000 of

Corp., New York (10/25)
Oct. 4 filed $5,000,000 of convertible
subordinated deben¬
tures due Oct. 1, 1971. Price—To be
supplied by amend¬

•

expected until sometime this Fall.

construction

cfmrnon stock (par $1). Price—For preferred, par and
accrued dividends; and for common, $6 per share. Pro-

St., Boston, Mass.

Walt

Wheland Co.,

16 shares held

request with the ICC for au¬

vertible preferred stock (par $10) and 67,500 shares of

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1,
1976, and 136,000 shares of common
the company's account and
61,000 shares for a selling
stockholder.
Price — To be supplied
by amendment.

Oct.

issue

Disney Productions, Burbank, Calif.
Aug. 24 filed $7,500,000 of convertible subordinated
debentures due Sept. 1, 1976. Price—To be supplied by
amendment.
Proceeds—$243,740 to redeem outstanding
4% debentures, series A, due 1960; balance for retire¬

eral

com¬

1, 1956 at the rate of one new
(with an oversubscription
privilege); rights to expire on Oct. 17. Price—$16 per

share for each

Securities

filed
34,600

company

thority

City, Utah. Underwriter—Us-Can Securities,
Inc., Jersey City, N. J.

(par 50
cents) being offered for subscription by common stock¬
holders

Sept. 10

Corp., 26 Fed¬

Salt

Transcontinental Gas Pipe Line Corp.
Sept. 10 filed 441,250 shares of common stock

New

^Central Wisconsin Motor Transport Co.

Securities Fund,

Aug. 24 (letter of notification) 500,000 shares^of common
(par 10 cents). Price—50 cents per share. Proceeds
—For development of oil and
gas.
Office—Felt Bldg.,

Co., Washington, D. C.

St.,

Wall

Incorporated,

from

Eros. & Hutzler.

stock

stock (par 10 cents). Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y^ Underwriter

(10/24)

it of $840,000 equipment trust certificates,
C, to mature in 30 equal semi-annual instalments.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon

Western States Natural Gas Co.

mon

Co.

Ry.

by the company, at the office of

received

sfefies

Co., Inc., of Florida, Miami, Fla.

Underwriter—Venture

Wash.

(letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B,
Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

of Georgia

Morgan

chase

filed

will

J/ P.

Diamond

Inc., Boston, Mass.
200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
Sept.

—Federal Investment

Central

Bids

Under¬

Mines, Inc., Miami, Fla. /
Aug. 31 filed 1,500,000 shares of common stock. Price—
(20 cents per share). Proceeds^-For exploration
and mining operations in Venezuela.- Underwriter—Co¬

ate

Thermoray Corp.
June

debentures.

Yprk 8, N. Y., up to noon (EDT) on Oct. 24 for the pur¬

Venezuela

ment

if Texas Power & Light Co.

—For

Vendoriator

writer—None.

lumbia Securities

Oct. 16 filed $10,000,000 of first mortgage bonds due 1986.
Proceeds—To repay advances and for construction pro¬
gram.

redeem

Peaoody &

Lynch, Pierce, Fenner & Beane (jointly).

Bids—Scheduled for Nov. 27.

until

Proceeds—To

bonds due 1986. Under¬
competitive bidding. Prob¬

Corp.; Blyth & Co., Inc.; Kidder,

Co. and Merrill

Manufacturing

At par

(11/20)

if Texas Power & Light Co.

Securities

stock (par $2.50)

Vendorlator

Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); Equitable

stock purchase warrants in lieu of their
Vendorlator common stock. Warrants are
Sept. 30, 1960. Price—$7.33 per share.

common

right

holders

(11/27)

Light Co.

bidders:

able

Mo.
common

announced company plans to Issue ana

was

writer—To be determined by

Calif.

Co., Kansas City,
Sept. 20 filed 32,778 shares of

Power

1956

sell $15,000,000 of first mortgage

Oifice—Fresno, Calif. Underwriters
Co., Inc. and J. Earth & Co.. botn

Vendo

exercisable
Texas

Carolina
March 22

..Thursday, October 18,

Underwriter—Allen Invest-'

Co., Boulder, Colo. Stock to be sold in Colorado.

ANnual

Reports

ReGistration

Statements

^andic^^ress, Inc.
Established 1923
22 THAMES ST.. NEW YORK 6

71 CLINTON ST.. NEWARK. N. J.

Leaders in Financial Printing Since 1923

■

Volume

184

Number 5578

The Commercial and Financial Chronicle

(1671)

•

^ Eversweet, Inc.
it

Oct.

(11/12-16)

derwriter

tion ot

Trice—$5

Underwriter—Burton J. Vincent & Co., Chicago,

ui.

•

Flair Records Co.

Aug. 13 it was reported company plans to issue arid sell
residents of New York State 50,000 shares of common
stock.
Trice—$2 per snare. Lnuerwriter—Foster-Mann,

Lee Offshore

Aug. 20 it
September

Inc., New York.

* Florida Power & Light Co.
15 it

bonds.

struction

program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc.; White, Weld & Co.; Lehman Brothers.
Bids—Tentatively expected to be received on Dec. 11.

Food Fair

Aug.

increase

the

authorized

stock

Union

Securities &

General

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities Corp. and
Eastman Dillon, Union Securities & Co.
Loeb & Co.; Blyth & Co.,

from

this

12,

class B stock which will then

new

.....

General Public

/.'■

Utilities Corp.

Tegen, President, announced that the
going to be offered approximately
647,000 additional shares of common stock (par $5) early
1957

are

the basis of

one

Merrill Lynch, Pierce, Fenner & Beane acted
clearing agent in previous offering to stockholders.

Haskelite
of

Underwriter—:May be G. H. Walker & Co., St. Louis and
Hawaii

received

(10/23)
to

(EDT) on Oct. 23
by the Treasurer, of the Territory, at the Bankers Trust
Co., 46 Wall St., New York, N. Y., for the purchase from
the Territory of $12,000,000 public improvement
bonds,
series B, dated Oct. 15, 1956 and due
annually on Oct.
15

from

1959

Hawaiian

a.m.

1976, inclusive.

Telepnone Co.

was announced that company plans to acquire
participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii

15%

cable and,
be

if approved by the directors

probably be financed by

on Aug. 16, will
debenture issue. Hawaiian

Telephone Co.'s investment will be approximately $5,500,0G0. Underwriter—Probably Kidder, Peabody & Co.,
New York.

Herold

Radio

July 25 it
vote

increasing

Television

announced

was

the

Corp.

stockholders

authorized

Aug.

10 will

stock

common

from

400.000

shares to 1,000.000 shares, in order to
provide
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New
York,
and Hallowefl, Sulzberger &
Co., Philadelphia, Pa.

High

Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The. First
Boston

Corp.

and

pointed to study
the

Lazard

Freres

the possibility of

American

market.

Ltd.

York.

The

Co.

has

loan

been

ap¬
issued

time, amount and terms

will

depend on market conditions.
Proceeds
To be
loaned to firms in the
Community for expansion of coal
mines, coking plants, power plants and iron ore mines.
Hudson Pulp &

Paper Corp.

reported

was

reported that company is considering the
$10,000,000 first mortgage bonds due 1986. Under¬
writer—To be determined by competitive
bidding. Prob¬

Halsey, Stuart & Co. Inc.; White, Weld &

Co.: Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co.
(jointly); The First Boston Corp. Bids—Not ex¬
pected to be received until December. Company presently
plans to issue and sell $22,000,000 of bonds in the next
16 months.

Michigan Bell Telephone Co. (12/4)
Sept. 24 the directors authorized the company to issue
$30,000,000 35-year debentures, due Dec. 1, 19 Jl.

Proceeds—For

construction

program.

Underwriter—To

be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Expected to be received on Dec. 4.

Minneapolis, St. Paul & Sault Ste. Marie
(10/18)

—

RR.

—

Bids will be received by the company up to noon
(CST)
on Oct.
18, at Room 1410, First National-Soo Line

Bldg.,
Minneapolis 2, Minn., for the purchase from it of $2,640,000 equipment trust certificates, series C, to be dated
1, 1956 and to mature in 30 equal semi-annual in¬
stalments
of
$88,000 each.
Probable bidders: Halsey,
Stuart & Co., Inc.; Salomon Bros. & Hutzler; lair &
Co.,
Incorporated.
Nov.

National

Sept.

Bank
was

Detroit

announced

(11/1)

Bank

plans to

offer 263,400

additional shares of capital stock to stockholders on the
basis of one new share for each 10 shares held as of
Nov.

1, 1956; rights to expire

what

below market

Price—Some¬

Nov. 21.

price prevailing at time of offering.

Proceeds—For capital and surplus account.
—Morgan Stanley & Co., New York.

may

the

Fall? do

financing. Proceeds—For expansion.
derwriter—Lee Higginson Corp., New York.

Un¬

Underwriter

the
000

was

SEC

basis
ard

Oil

reported

company

one

Co.

capital

new.

stock

(no

par)

share for each 20

about

probably

shares held.

indicated

None.

intends

Price—To be named later.

its

the

Stand¬

portion

Underwriter—

Offering—Expected in November.

Interstate Fire & Casualty Co.
Sept. 26 it was reported company plans to issue and sell
75.000 additional shares of common stock.
Underwriter
—White & Co., St.
Louis, Mo.
Offices — Chicago and

Bloomington, 111.
Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first
mortgage bonds. Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey. Stuart & Co.
Inc.; Kidder, Peabody. &
Co.; The First Boston Corp.; White, Weld & Co.;

Eqst-

man

Dillon, Union

Hutzler

and

Securities

Merrill

Lynch,

& Co., Salomon
Brosr &
Pierce, Fenner & Beane

(jointly).
24

one

new

share for each

Proceeds

—

National

Newark

Newark
Oct.

holders

increase capital

the

announced

was

basis

record

Turben

City

Power

stockholders

Light Co.

approved

bonded indebtedness of the
company

proposal

increasing
by $20,000,000. Un¬

Essex

Banking Co.

bank

offering to

Oct.

one

new

for

each

six

Natural

Gas

^its stock¬

to "subscribe
(par $25) on
shares held;

Oct. 24.

of America
Feb. 20 it was reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬
ding, the following may bid: Halsey, Stuart & Co. Inp.;
White, Weld & Co.; Lehman Brothers and Eastman
Dillon, Union Securities & Co. (jointly).
New

Pipe

Line Co.

England Electric System
was announced company plans to merge

1956, it

its

subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Jo.

and

during
name

writer

Amesbury Electric Light Co., into one company
1956. This would be followed by a $20,000,000

the

of which has not
—

May be

now

mortgage

sell

& Telegraph Co.

(1/8)!

$35,000,000 of 29-year

debentures.

Proceeds—

repay temporary borrowings. Underwriter — To be
determined by competitive bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.
Bids — Expected to be received on
Jan.

8, 1957.

New Jersey Power &

Sept.

12 it

Light Co.

announced

company plans to issue and
$5,000,000 of first mortgage bonds. Underwriter—
be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man
Brothers and Salomon Bros. & Hutzler (jointly);
Eastman Dillon, Union Sbburities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill 'Lynch, Pierce, Fenner & Beane.
was

sell
To

^ Niagara

Mohawk

Power

Corp.

Oct>i7, Earle J. Machold, President, announced that the
company

plans to sell in the
debentures.

convertible

near

future $50,000,0(/0 of

The stockholders

Dec.

4 will

approving this issue.- Proceeds—For construction
program. Underwriter—May be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Morgan Stanley & Co.;
Kuhn, Loeb & Co. and Eastman Dillon, Union Securities
on

(jointly).

Northern Natural Gas Co.

July

19 it

1956

construction

was

reported

plans to finance its
(costing about $40,000,000)

company

program

through issuance of debentures and treasury funds in
latter part of year. Underwriter—Probably Blyth & Co.,
Inc.

Offshore

Gathering Corn.. Houston, Texas
18, 1955, David C. Bintliff, Pres., announced com¬
pany has filed an application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of

Nov.

Louisiana from the

Sabine

River

the

Gulf

Coast

the State of

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,UU0,U00. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
stock). Underwriter—Salomon Bros. & Hutzler,

common

New

York.

Oklahoma

Corp., Oklahoma City, Okla.
July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and
sell in the State of Oklahoma $20,000,000 of its capital
($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬
sidiaries.
Business—A holding company.
Underwriter

stock

—None.
Pacific Northwest Pipeline Corp.

March

Williams,

President,

announced

that

about 280,000 shares of common stock (par $1) are to be
sold in connection with subscription
contracts which
were entered into at the time of the original
financing
April of 1955. Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi¬
tional first mortgage bonds, and $10,000,000 of 5.6%
interim notes and borrowings from banks, will be used
to construction program.
Underwriters—White, Weld &
Co.; Kidder, Peabody & Co.; The Dominion Securities
Corp.; and Eastman Dillon, Union Securities & Co.
Registration—Expected soon.

Pacific

Price—$57 per share. Pro¬
ceeds—To increase capital and surplus.
Underwriter—
Merrill Lynch, Pierce, Fenner & Beane, New York.
on

company

first

announced that the company plans to issue

Northwest Power Co.

Aug. 13 it

(N. J.)

rights to expire

Jan. 3,

and

was

as yet been determined.
Under¬
determined by competitive bidding.

Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,

Loeb

was

000,000 of

4, 1956, the right
55,000 additional shares of capital stock

(par $16)

shares held.

first mortgage bond issue by the resultant company,

Kansas

April

basis

Price—$50 per share.
surplus accounts.

1,500,-

(New

that

offering.

100,000 additional shares of capital stock
the

Underwriter—Merrill,
Co., Inc., Cleveland, O.

Jersey), which owns 69.64% of the
outstanding 29,865,691 shares outstanding, is said to have

the

8 it was announced Bank proposes to offer to its
stockholders of record Oct. 24, 1956 the right to subscribe

plans to register with

offering to its stockholders

(11/5)

Bank of Cleveland, Ohio

Oct.

and

Imperial Oil Ltd.
Oct.

National City

for

company

public

some

$10,000,000

^ New England Telephone

was

sale of

—

June .25

was

sell

& Co.

Metropolitan Edison Co.
July 2 it

Power Co.

announced

plans to issue
bonds early in
1957.
Underwriters
To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
man Dillon, Union Securities & Co. and Wood, Struther3
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co, and White,
Weld & Co. (jointly).
;

vote

(Canada)

and sell

July 30 it
a

Underwriters—Goldman, Sachs

Brothers, New York. """

Petroleums

able bidders:

(Territory of)

will

England
it

re¬

Sept. 6 it was reported company plans to issue and sell
some
debentures.
Underwriter—White, Weld & Co.,

Manufacturing Co.

New York.

Bids

Merrill

was

about

development of branch stores and

& Co. and Lehman

New

reported company may be considering sale
$1,000,000 to $1,500,000 bonds or debentures.

For

—

gional shopping centers.

share for each 15 shares

new

held.

July 16 it

May Department Stores Co.
July 19 it was announced that this company may under¬
take financing for one or more real estate
companies.
Proceeds

stockholders

—Expected to be received about Jan. 15, 1957.

corporation, plans to sell certain of the vested

held—..

Sept.

Corp.

following reclassification of the shares

2,983,576 shares of
be

Film

announced that the Attorney General of

was

!,,nTr^tpH
of

(jointly); Kuhn,
Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and Harriman
Ripley & Co. Inc. (jointly); Salomon Bros. & Hutzler;
The First Boston Corp., and
Glore, Forgan & Co. (joint¬
ly);; White, Weld & Co. and Shields & Co. (jointly). Bids

Co., New York.

Aniline

Sept. 21 it

bonds due 1987. Proceeds—For reduction of
loans and construction program. Underwriter—To

be determined

authorized

5,000,000
shares to 10,003,000 shares. Underwriter—Eastman
Dillon,
common

mortgage
bank

voted

New
Jan.

Oct. 16 it

indebtedness from $35,000,000 to $60,000,000 and to in¬
crease

Co., Salomon Bros. & Hutzler, Eastman Dillon, Union
& Co. and Wood, Struthers & Co. (jointly);
Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

—

Louisiana Power & Light Co. (1/15)
Oct. 4 it was reported that the company plans the issu¬
ance and sale of between
$18,000,000 and $20,000,000 first

Stores, Inc.

stockholders

Drilling Co., Tulsa, Okla.

reported company plans registration in
$2,500,000 of convertible class A stock.

McNeill & Libby
was reported that the
company is said to be
considering new financing in the neighborhood of be¬
tween $15,000,000 to $20,000,000.
Underwriter—May be
Glore, Forgan & Co., New York.
Oct.

30-year first mort¬
bank loans and for con¬

Proceeds—To repay

* Libby,

between $15,000,000 and $20,000,000
gage

was

Securities

Lehman

and

Underwriter—Rauscher, Pierce & Co., Dallas, Texas.

(12/11)

reported company plans to issue and sell

was

bidders:

ably not until first half of 1957).

Oct.

—

Probable

registration of 100,000 shares of common/ stock.
per share. Business—Producers of fresh orange

early

juice.

To be

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Boston^ Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co.
(jointly);
Lehman Brothers and Bear, Stearns & Co.
(jointly).
Amount and timing has not yet been determined
(prob¬

reported that this company (a consolida¬
Vita-Fresh Corp. and John H. King & Co.) plans
was

company plans to sell about $32,stock to the organizing companies and
to be made to borrow

common

that
up

reported

arrangements are expected

to $60,000,000
through

vestors
in

well

revolving bank loan which will be
the sale of bonds to institutional in¬
the general public. Proceeds—To pay,

on a

reduced

part, for cost of new power project to cost an esti¬

mated $217,400,000.

Palisades Amusement

Park, Fort Lee, N. J.

Rosenthal, President, announced that
company plans to purchase another amusement park and
merge the two and then sell stock to public.
Aug.

21,

Irving

Pan Cuba

Oil

& Metals Corp.

(Del.)

Walter E. Seibert, President, announced that
company will soon file a registration statement with the
SEC preparatory to an equity offering planned to take
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
April

York, N. Y.
Pennsvlvania

Electric

Co.

12 it was announced company plans to issue and
sell $6,000,000 of first mortgage bonds.
Underwriter—
To
be determined by competitive
bidding. Probable
Sept.

Continued

page

Wfwn>i#to

«-%

The Commercial and Financial Chronicle

(1672)

Continued

from

it Re" oVoid Chemicals,

page

Oct. 15 it

& Co. Inc.; Merrill Lynch;-Pierce,
Eastman Dillon, Union Securities &

bidders: Halsey, Stuart
&

Fenner

Beane,

tional

Co.

Sept.

bidders:

Salomon Bros.

at 466

Halsey, Stuart & Co. Inc.;

for

•

repay

Brothers; Harriman Ripley &
Expected to be received early in 1957.
Public

Service

Co.

Eastman Dillon,
Offering postponed.

Public

Service

Electric

Union

Gas

1)56.

This

financed

the

1956-1959

years

large expansion,

the company says,

wholly by debt and from internal

derwriter—If

determined

to stockholders

struction

include Halsev, Stuart & Co. Inc.: The Fir«t RnoW Pnrr

the

New

corporate

that

nothing
and

the

drift

mar¬

the

de¬

sort

chance

thinking is
probably
will
something of a

million

the

after

elec¬

tion

day and possibly through the
period of corporate borrowing for
inventory building etc.
Divergent

investment market appears
to have been gripped by pre-elec¬

cost

tion

measure

indifference

judging

from

Evidently
of

Views

just that
investors

one's views
depend in

how

the

on
a

market

will

going

ities.

has

$40

past,

bond

offering

issues
bold

are

corporate

new

debt

again disposed

once

aloof.

Some

that

Treasury's
would

had

the

been

the

outcome

the

special

week,

bill

sale

proved

though

were

better than

the

last

favorable,

give the market

even

lift.

But

results doubtless
had

been antici¬

pated, the corporate market failed
to

respond.
The

against
on

the

ceding

average rate of 3.013%

weekly rollover just
the special offering.
was

the

faarket

been

This

than

received

bid of 2.627% for its $1.6
special
91-day
bills

billion

substantially

2.80%

to
observers

inclined

sense

borrow

would
as

Mr.

ing

Major, of

for

one

dustries

trolled

rate

the

rate

Federal

bodies

nearly

such

most

the

financing,
10

years

rise

the

does

for

against

earlier,

interest

the

rates

effect of taxes

Ahead

prospective

issuers

should

undertakings, and they have been

of- im-

decide

the rate of

when
not

the

thought

right.

issue, $10

Natural

Gas

postpone

such

one

Proceeds

working

Atlantic

First

Co.,
\ :;-

Trust

Corn.

Co.

par

of the stock

Pipe Line Co.
acquired
from

underwriting group headed
by Blyth & Co., Inc. offered pub¬
licly yesterday (Oct. 17) an issue
of
497,100
shares
of
GeorgiaPacific Corp. $1 par value common

share.

net proceeds to the com¬
from the common stock of¬

this

about

However,

Omaha.

$15,000,000.

amount,
approximately
$8,000,000 will be used along with

Co.,

Chicago,

111.,

Wachob

and

Neb.

The

Bender

Bay had sales of $25,914,000 and
pro forma net profit was $2,630,-

be available for

sales amounted to $48,544,000 and

The

purposes.

for

general corporate

net purchase price

Hammond

Lumber

will

000.

Hammond

1955,

the

1955,

$75,388,800, of which $60,000,000 will be paid in cash and

common

adjusted for

the remainder by

corporation

the issue of $15,388,800 of 5% subordinated deben¬

stock.

tures

$60,000,000
cash portion of the payment will
be
made up
of: $8,000,000 from

this sale of

stock

000

due

stock, $5,500,-

common

securities

from

Hammond
ance

The

1976.

Lumber,

owned

and

sidiary
panies.

loans

term

bal¬

will
of

acres

Southeast

and

With

com¬

than 400,000
timberlands

dividend

Sales

was

the

billion feet of

corporation

ended

the

six

and

30,

June

17th

with

months

Three With Securities Inc.
(Special to The Financial Chronicle)

DENVER,
Colo.— Mrs. Peggy
Forrester, James F. Reynolds and
Robert
to

the

Wolff have been

staff

$3,535,000

1955.

sales

were

profit

the

divi¬
was

against $2,935,000 in
calendar

year

$91,966,000

and

With United Investors
(Special to The Financial Chronicle)

net

dividends
These^figures do

not include the

operations of Coos

after

preferred

Bay Lumber Company which was
acquired

July.

1955,

DENVER.

Colo.— Arthur

K. Tubfcs have

with United In¬

vestors, Inc., U. S. National Bank

Building.

1955,

$6,099,000.

was

Inc.,

Building.

become affiliated

preferred

1956 six months

added

Securities,

Net

after

Peters,
Inc., 724

Street.
He
was
previously
Dempsey-Tegeler & Co.

Jones and Stewart

profit

Chronicle)

Christensen,

1956, were $48,509,000 compared with
sales of
$45,190,000 in the 1955 six months.
dends in the

also, declared.

With Peters, .Writer

Farmer's Union

subsidiaries

DENVER, Colo.—Sam C. Mozer

the

over

quarters

has become connected With

Coast

own

West

and

three

(Special to The Financial*

com¬

Major mills and plants
the

cash

first

the

this

Writer

products.

pany

2-for-l

sub¬

insurance

two

cents

share,
stock split,

year, cash dividends* ag¬
gregating 57 Vz
cents per share
were paid.
In each quarter a 2%

the sale
of

paid

stock dividends per

the

$46,500,000 from

notes and

Lumber

forma net profit to $2,021,000.

pro

about

containing

will

None.

—

per

wood and other forest and lumber

Georgia-Pacific Stk.

fering

Price—$20

company

Lincoln, Neb.;

Blyth Group Offers

per

shares held

seven

short-term bank loans and

Underwriter

Cruttenden

—

con¬

Refining Co.

$32

stock (par $2.50)

common

—

Underwriters

lumber.

v/V-/?'

proposes

Watson Brothers Transportation Co.
Sept. 19, it was reported public offering of an issue of
619,776 shares of class A common stock (par $1) was
planned late in October. Price—Expected to be around
$7.50 per share.
Proceeds
To selling stockholders.

acquisition of Hammond, the

being

:
*

—

Houston

share.

per

f -"IB*

now

privilege).

construction

company

share for each

announced

was

new

Northwest.

the

• .v

proposes to finance
pipeline in Virginia to
cost about $3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co,. Washington, D. C.

con¬

Pacific

_r*

Washington Gas Light Co.

located

for purchases

the

To retire

—

capital.

the

pay

new

Georgia-Pacific Corp. is a lead¬
ing producer of Douglas fir ply¬

million

Corp.

-t

oversubscription

are

pany

around the foregoing levels would

possibility

big

scheduled

only. Price—$2

stockholders the right to subscribe

common

The

Unless

The

hesitated,

were

smaller

stock
Week

Tuesday.

announced

was

midweek. Proceeds would be used

its

■suggest

the

series

30-years, scheduled

not

postpone

conditions

3.5%

wages."
The

facil¬

is not

"insignificant part of costs

compared with
and

the

paid

company

paid

was

State

exercised about

Noting

recent

bids
has

which

regulation,

situation.

which

Cordiner, President of

subject
feel

con¬

measure

General Electric Co., which

the

for

utility

only

governments.

not

new

is speak¬ vertible preferred stock $100
for
offering
in¬ value, is slated

income

making
J.

declared

somewhere

im¬
get

will

finance

country's

important

and

able prior to the sale of the issue.
been
opinion
in
some

that

then

course,

the

whose

which
have

for

money

and

rail¬

bonds, due

Houston

2.45%

favor¬

the

return on their investment of

better

2.90%

regard

pre¬

for

4%.""

U —had

quarters

Ralph

Treasury

average

make

field.

provements at 5%

people

opinion

roads

particular

used

million

doesn't

interest

his

nego¬

Consolidated Edison Co. of NewYork

had

fi¬

...

who

$55

This

schedule. Pro¬

Major, President of Lehigh Valley
RR., for example, says ."it just

investors

Co.'s

nancing, being done via the
route,
very
likely

come

Institutional

showing signs of reawakened

Steel
bonds.

new

pros¬

tiated

large

are

things

National

>
;

stock will be of-y

Unsubscribed

acquire, through a
subsidiary, the assets of Hammond
Lumber Co., and the balance will

pect

other funds to

occa¬

undertaking in

its behavior of the last few weeks.

been

will get
large issues next

two

planned construction of

money
on

The major

ceeds

The

Proceeds—For

week.

until

least

recently,

of common voting stock at rate
2,500 shares to each stockholder. Rights

Aug.

its

proposed

issue and

Underwriter—Dillon,

inclined

market

along

groove

now

June

plans

Read
-iV:':;V v-'/-

sion

veloped

Co.

company

l-for-20 basis.

program.

York.

ket.
But

Service

than

Corp., which owns about 17% of the common stock
outstanding, will subscribe for any stock not taken by
others.
For every share subscribed for through exer¬
cise of primary and secondary rights, the stockholders
would receive a further right to purchase until Nov. 30,
1957, one additional share at $22.

February or March, 1957, $5,000,000 of first mort¬
bonds and $5,000,000 additional common stock first

gage

may

nrovement

Public

•

Atlas

Generating Co.

announced

was

Disney Publications, Burbank, Calif.

(with

sell in

Un¬

competitive bidding,

several f

one

issued, they will be offered

are

for 186.500 additional shares of

was

Southwestern

can

sources.

Walt

$150,000,000 steam electric generating plant
Underwriter—May be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
rities & Co.; Equitable Securities Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.
Inc. and Goldman, Sachs & Co. (jointly); Blyth &
Co.,
Inc.
and
Kidder, Peabody & Co.
(jointly); - Morgan
Stanley & Co.
Aug.

stockholders. .Underwriter—Kuhn,

Co., New Yoik.

expire

Oct.

the Coosa River in Alabama.

will

common

and operate a

$87,000,000, including $20,000,000 budgeted for

debentures

fered to residents of Oklahoma

for

stated that-

Chairman,

Jr.,

debentures

Underwriter—None.

subsidiaries of Southern Co., plans to issue debt securi¬
ties. Proceeds—Together with other funds, to construct

Co.

convertible

Co.

Humphreys,

additional

of not

will

announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,

Puget Sound Power & Light Co.

for

000

share.

Electric

Price—$35 '

University Life Insurance Co., Norman, Okla.
21, Wayne Wallace, President, announced company '
near future to offer to its 200 stockholders 500,-

California

the basis

held.

June

are

Co.

(par $10)

plans in

was

Southern

Feb. 15 the company announced that it estimates that its
program

in/

May 18, it

Fenner & Beane.

construction.

construction

Loeb

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Underwriters—Morgan Stan¬
ley & Co., Drexel & Co., and Glore,' Forgan & Co.

amount to

Gas

rata to

determined

18 it was announced company plans to issue and
1,000,000 additional shares of common stock (no
par) early in December. Proceeds—To repay bank loans
new

Counties

convertible
pro

Proceeds—For expansion

30.

1956 for 114,000

possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added that, if

reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be

sell

for

Oct.

five

the

offered

were

before Oct. 26,

Rubber

States

29,

offer

Jan. 30 it

Co.

United

for each nine shares
scheduled
to
vote

debentures

Oct.

—

and general corporate purposes. Underwriter
—Smith, Barney & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane, both of New York.

Sept.

sAd

financing

Southern

Securities

Calif.

Los Angeles,

Co.,

record

share for each

new

issuance

Stockholders

Proceeds—To increase capital and surplus. /
Underwriters
Blyth & Co., Inc. and Stern, Frank,
Meyer & Fox, both of Los Angeles, Calif.:'

program

Co. of

and

(jointly).

the

$100

Trust

share.

June

held.

one

per

that the

reported

was

stock

Indiana, Inc.
July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler

debt

basis

Bids-

Inc.

Bank

stockholders

additional shares of capital stock

New York.

Sinclair Oil

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Th£ First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);

expansion program. Underwriter—Dillpn,

Inc., New York.

right to subscribe

pre¬

Corp. (11/15)
Sept. 10 it was announced that company is considerin
offering of about $165,000,000 of convertible subordinated
debentures for
subscription by common stockholders

be determined by

Lehman

Union
Oct.

ex¬

company plans longfinancing and/or issuance of additional com¬
mon
stock.
Proceeds—To redeem preferred stocks and
for expansion program, etc.
Underwriter — Probably
Blair & Co. Incorporated, New York.

Underwriter—To

construction.

new

1956,

payable in

stock, series

term

reported company plans the issue and sale;

loans and

declared

Seiberling Rubber Co.
Sent.

$30,000,000 first mortgage bonds. Proceeds—To

been

lon, Union Securities & Co., New York. Exchange Agent

ft Public Service Co. of Colorado

bank

has

which

—The Chase Manhattan Bank,

540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
•per share.-.
-V

to market

A, on the basis%of $100 of deben¬
tures, one-quarter share of common stock and unpaid
dividends of $2.50 per preferred share in exchange for
each 5% preferred share. The offer will expire on Dec. 31,
1956, unless extended. Dealer-Manager — Eastman Dil¬

Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

was

$61,600,000

Proceeds—For

ferred

•

Oct. 8 it

exceeding

not

change for its 616,000 shares of $100 par value 5%

Hutzler; Kidder, Peabody & Co.

Transmission Corp. (12/10-21)
issue and sell, subject
conditions, $40,000,000 of debentures due 1976.
announced plans to

was

Read; & Co.

dend

Lexington Ave., New York 17, N. Y., for the purchase
from it of $7,305,000 equipment trust certificates to be
dated Nov. 15, 1956 and mature in 15 equal annual in¬
Probable

offered

company

Eastern

154,000 shares of common stock
(no par), and cash
equivalent to the unpaid portion of the preferred divi¬

Pittsburgh

stalments.

additional

stock, recently authorized by the

common

50-year income 5% debentures, series A, due Jan. 1, 2006,

was

& Lake Erie RR. (11/1)
Bids will be received by the company on Nov. 1

working
Oct.

1958

di¬
will provide the company with the additional
capital it will require for further expansion.

rectors,

Ry.

Thursday, October 18,

Corp., San Antonio, Texas
announced that the 1,000,000

was

it Texas
Francisco

Louis-San

St.

indicated that the company next year
will give consideration to refunding its $75,000,000 of
short-term bank loans. After review, the company will
decide the most appropriate type of long-term borrow¬
ing, whether it be insurance loans, long-term bank
borrowing, convertible debentures or straight deben¬
tures.
Underwriter—The First Boston Corp., New York.
it

raise approximately

Oil

shares of

year.

Phillips Petroleum Co.
24

sufficient

stock,

common

and New York.

Sept.

Oct.

$6,000,000. Underwriter—Blyth & Co., Inc., San Francisco
Offering—Expected before the end of this

Weld & Co. (jointly); Equitable Securi¬
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.; Kuhn, Loeb & Co.

Co. and White,
ties

Texam

Inc.

reported company plans to sell some addi¬

was

Coos

With FIF Management
(Special to The Financial Chronicle)

ST.

LOUIS,

Schmitz is
ment

now

Mo. —William

with FIF Manage¬

Corporation.

'Number 5578

184

Volume

The Commercial and Financial Chronicle

(1673)

The

indications of Current
Business

following statistical tabulations

latest week

Activity

week
Latest

AMERICAN

IRON

Indicated

steel

AND

STEEL

operations

(percent of capacity)

Equivalent to—
8teel ingots and castings
AMERICAN

PETROLEUM

oil

Crude

Gasoline

Oct. 21

§101.7

Month

"2,483,000

(bbls.

average

100.6

2,477,000

ALUMINUM

7,021,650

7,044,100

7,036,650

(in

6,690,150

!i7,697,000

*7,912,000

8,187,000

7,191,000

26,687,000

27,093,000

Oct.

28,353,000

2,096,000

2,484,000

2,293,000

13,268,000

12,744,000

13,080,000

10,468,000

7,718,000

7,622,000

7,820,000

7,712,000

175,955,000

151.006,000

(bbls.) at—
Distillate fuel oil (bbls.) at_———
Residual fuel oil

(bbls.)

174,720,000

33,243,000

33,817,000

32,698,000

„a.

151,805,000

150,367,000

142,731,000

47,299,000

47,499,000

47,198,000

815,004

831,438

679,611

Revenue

CIVIL

CONSTRUCTION

683,329

692,324

603,882

Total

682,200

Month

Private

Public

and

■

Bituminous

(U.

coal

lons

211,356,000

245,050,000

232,973,000

228,694,000

178,874,000

Refined

245,958,000

139,515,000

117,118,000

Indicated

Oct. 11

DEPARTMENT

STORE

EDISON

Electric

output

(in 000

BRADSTREET,

Scrap

(per

steel

PRICES

tin

(New York)

Lead

(St.

Zinc

INDUSTRIAL)

DUN

—

568,000

127

130

112

125

11,342,000

11,339,000

10,593,00G

259

253

203

•203

5.622c

5.174c

5.622c

$63.64

$63.04

Oct.'

$56.17

$57.33

$58.83

COAL

Oct. 10

39.700c

36.450c

37.550c

37.850c

end

104.500c

103.000c

101.250c

96.000c

16.000c

15.800c

—Oct. 10

13.500c

Oct. 16

15.300c
-

13.500C

13.500c

91.98

91.27

99.04

99.20

100.16

102.96

103.30

111.2-5

100.98

101.31

102.13

98.88

99.36

100.16

93.82

95.16

102.63

98.25

98.88

99.20

100.32

100.16

101.14

108.70

Oct. 16

3.16
3.81

3.80

'V 3(20

3.74

Month

Number

Contracts

3.30

NATIONAL

3.55

3.10

3.67

3.62

3.19

3.82

3.79

3.74

4.16

4.15

4.06

3.59

3.86

3.82

3.38

Domestic

3.82

3.80

3.73

Export

3.75

3.74

3.68

3.27
3.24

418.0

417.8

425.5

405.5

Percentage
Unfilled

orders (tons)

at end

CJ"

of period

uct-

AVERAGE

1949

METAL

DEALERS

EXCHANGE

Odd-lot

sales

—

SECURITIES

dealers

Dollar value
Odd-lot

Customers'

other

Dollar value

sales

...

ttThree months, London

§§Zinc,

Prime

410,178

48l),
3,810

677,874

ttZinc,

London,

prompt

London,

three months (per long

109.15

108.65

106.83

Zinc

(per

Silver

and

Total

round-lot

London

York

(pence

New

York

(per

£114.489

£107.293

13.500c

13.500c
14.000c

13.428c

ton)--—

£96.344

£95.597

£91.886

£94.288

£94.017

£91.480

90.750c

90.614c

ton)

per

$70,236,768

$61,196,163

$67,876,525

(per

pound),

918,082

917,060

788,504

1,083,527

Antimony

(per

pound), boxed,

6,282

4,857

12,136

3,866

Platinum,

refined

911,800

912,203

776,368

1,079,661

(Cadmium,

refined

$47,355,344

$45,892,432

$40,015,653

$57,097,900

fCadmium

(per

228,610

234,960

200,370.

306,870

99%

plus

grade,

551,120

493,170

428,510

ingot

""Nickel

$35,000
$263,400
36.470c

36.470c
33.000c

33.500c

33.500c—

$92,780

$1.70000

—

$1.70000

(per pound)-primary pig

$1.70000"

$2.60000

27.100c

ingot

$1.70000

$2.60000

26.699c

24.400C

24.665c

Not Avail.

25.000c

sales—

FACTURERS'

34.694c

64.500c

$2.25

——-

FACTORY

SALES

ASSN.—Month

418,940

420,140

447,090

522,700

10,768,540

10,073,690

769,830

12,087,740

Number

passenger

11,187,480

10,493,830

9,216,920

12,610,440

Number

motor

Number

August:
C

buses

sales

—-

MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

Total

sales

1,282,870

1,502,920

311,300

221,870
38,500

318,640

290,450

208,410

303,210

344,940

315,550

—246,910

324,010

———

sales

Sept. 22
.Sept. 22
Sept. 22
Sept. 22

611,563

.—Sept. 22

:—

sales

purchases

580,405

402,618

552,780

64.720

79,330

84,650

140,230

531,835

586,645

510,675

680,290

596,555

665,975

595,325

820,520

2,309,053

2,165,285

1,826,268

Other

sales

Total

LABOR

PRICES, NBW

—

(1947-49

SERIES

—

S. DEPT.

328.450

318.660

320,170

1,898,875

1,747,265

2,217,535

2,067,435

Total

Farm

products

—

other

Oct-

*115.2

115.0

114.8

Total

Oct.

88.0

*88.9

89.2

87.5

103.3

*104.1

.403.6

_1D 1.1

84.8

87.6

87.5

80.9

Oct.

thahT'farm and foods

Jan.

Monthly

figure.
1956.

^Includes

Investment

1,044.000

against Jan.

Plan.

barrels

1955 basis

123.0

122.9

122.4

118.6

foreign crude
125,828,319 tons.

$905,117,482
669,383,959

81.03

73.96

$70,022,843

103,590,536
87,000,000

61,432,982
43,000,000

$105,558,267
109,611.044
90,000,000

$278,000,000

$281,000,000

275,564,737

277,476,106

85,023

79,428

47,725

$274,345,882

$275,644,165

$277,523,832

459,423

460,906

478,855

$273,886,458

$275,183,259

$277,044,977

4,113,542

2,816,740

3,955.022

—.

LIMITATION

(000's omitted):

that

amount

may

outstanding

—

■

public debt
obligations not

gross

Total

owned

the

I—

gross

teed

Grand
Balance
under

public

obligations
outstanding

runs.

JBased

^Number

new

orders

annual
not

capacity of 128,363,000 tons

reported

since

introduction

total

face

debt

guaran¬

public

debt

obli¬

to debt limitation-

outstanding—

amount

above

and

obligations,

issuable

authority

"Revised figure.

producers'
tIDomestic

"Revised

654,404,870

74.92

—______

Treasury

111.4

Oct.

All commodities

Sept.

face
any

Deduct—other

Oct.

——

Processed foods

$807,640,567

679,722,658

(AS¬

RRs.)—Month

STATUTORY DEBT

gations not subject

Meats

2,647,450

100):-

commodities

434

$907,294,469

ROADS

—,——_——

time—:
Outstanding—

Commodity Group—
All

95,119

274.260,859

—

GOVT.

2,266,370

2,406,735

620,610

307

381,080

2,078,285

7T6,163

80,836

$102,301,829

CLASS

operating expenses——

Guaranteed

Sept. 22
Sept. 22

sales

WHOLESALE

522,123
440,980

railway operating income before charges
income after charges (estimated)—____

Net

2,429,960

Sept. 22

sales

Short

Net

503,276

429

revenues

Operating ratio

20,800

$2.25

417,020

:
—

AMERICAN

operating

Total

342,220

25,100

64.500c

August:

Taxes

280,780

26,300

Total round-lot transactions for account of members—
Total

Total

—As

sales

Total

1,028,180

1,225,200

off the floor—

purchases

Other

1,021,780
1,236,010

Sept. 22

transactions initiated

Short

1,227,810

1,465,240

——Sept. 22
.Sept. 22

—

sales

220,050

Sept. 22

sales

Other

Total

1,534,960

197,020

the floor—•

purchases

Short
Total

1,201,780

214,230

Sept. 22
-Sept. 22

sales

transactions initiated

1,304,100

237,430

85,827

cars

trucks

EARNINGS

SOCIATION

1,386,190

Sept, 22

——

number of vehicles

RAILROAD

Sept. 22

sales

Other
Total

Other

ACCOUNT

purchases

Short

Other

FOR

TRANSACTIONS

ROUND-LOT

32.500c
'

$2.25

FROM

Sept. 22
Sept. 22

Total

MANU¬

Sept. 22

Total

35.250c"

pound )_1

$1.70000

-----—

S.—AUTOMOTIVE

33.500c

$104,037

$1.70000

—

——---—.—

VEHICLE

PLANTS

33.000c

$104.eoo

_—

pound)

(per

96.245C

$35,000
$255,000

36.470c

Laredo

—

(per

MOTOR

(SHARES):

sales

98.944c

„

33.000c

—

Laredo

pound)--

79.483d

$2.78583

$35,000

(per ounce)—

(per

90.804c

78.773d
$2.78306

604,320

12.928c

$255,000

pounds)

bulk,

(per pound )
97% grade

Aluminum,

103.734c

price)--

$72,812,006

New

78.869d

ounce)_•.___—

$2.78304

flask 01 76
York boxed

(per

1!Antimony,

—

Straits______

ounce,

Quicksilver

Aluminum,

14.940c
£107.568

14.000c

(check

Other

ounce)

1,205,959

Cobalt,

15.100c

15.800c
£116.063

lb.)._

(per

long

(per

Exchange

Magnesium

MEMBERS

44.33JC

16.000c

Sterling Exchange—

Short sales

Louis

delivered

Western,

New

Tin,

long ton)

(per

pound)—East St.

Silver,

Sept. 22

44.052c

£115.144

102

SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS

AND

ACCOUNT

39.625c
37.667c

£117.175

379,667

306,870

268,362

15.800c

(per pound):
long ton)

289,693

STOCK

TOTAL ROUND-LOT
EXCHANGE

Louis

(per

Bismuth

FOR

pound)

1,106,685

(per

266,557

purchases by dealers—

Number

East St.

York

202,337

200,370

312,338

165,470

16.000c

234,960

288,166

39^597c

249,859

228,610

51,976,145

37.511c

refinery

^Cadmium

sales

_______

t+Zinc,

sept. 22
22
—————— 3ept* 22

53,246,057

213,495

31___

(AMERI¬

QUOTATIONS)—

—fep, 22

—

salps by dealers—
of shares—Total sales—.

Other

refinery

Silver,

—..sept. 22
^ept. 22

53,368,640

39,654,320

August:

Antimony

sales

Short

(E.

$661,381,000

268,273

July

43,075,287
$710,990,000

CONSTRUC¬

(tonnage)—estimated

New

Gold

—

STEEL

Sept. 22

sales_

Round-lot

customers

Sept. 22

short

43,009,663
of

pound)—

(per

Sterling

fepr v't,

Customers'

Number

omitted)
customers—month

1,214,066

total sales—

123

consumers—

271,570

(customers' sales)—

of orders—Customers'

Round-lot

(000's

1,326,602

;

purchases by dealers

Number

ultimate

Common,

purchases)—t

(customers'

121

'113

Lead—

Number

PRICES

-'Copper

ODDSTOCK
EXCHANGE COMMISSION:

SPECIALISTS

AND

'128

164,300

Average for month of September:

3.30

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT

128

109.18

°ct- 12

100

2,055,795

Average=KM>—-

503,380

PAINT AND DRUG REPORTER PRICE INDEX—

OIL,

6,240,600

48,791
2,634,534

RE-

variations—:

2,252,651

2,962,937

tons)'

(net

280,80.9

,6,404,900

130

month

376,835

—

...

2,468,000

2,301,442

5,496,368
118,462

ultimate

tfPrompt, London

activity

sales

Common,

(tons).
(tons)
_i—_

40,807,000

2,699,000

5,614,830

(tonnage)—estimated

3.57

ASSOCIATION:

PAPERBOARD

44,616;000
"

2,671,000

INSTITUTE—

closed

3.69

Orders received
Production

52,278

Aug.:

„

STRUCTURAL

Shipments

Oct. 16

*55,769

40,320,000

SALES—FEDERAL

ultimate

Oct. 16

INDEX

end

INSTITUTE

Oct. 16

COMMODITY

MOODY'S

04,450

adjustment

July

FABRICATED

87,365

42,167

$719,79.9,000

3.56 i

83,443

*88,017

(*104,307

(tons

tons)-

STORE

from

Oct. 16

Group

seasonal

Revenue

2.82

"89,549
-

92,377

(net tons)

ELECTRIC

Oct. 16

Group

90,235
102,1.65

■_

(net tons)

(net

SYSTEM—1947-49

Oct. 16

Industrials

3,118

MINES)—Month

lignite

for seasonal

Oct. 16

Utilities

period

tons)

(net

stock

Oct. 16

Public

3,228

5,364

(tons of'

MINES)—Month

TION—Month of

3.15

Oct. 16

i__.

and

Kilowatt-hour

108.16

100.00

EDISON

AVERAGES:

—

grades

106.21

Oct. 16

Group

2,575

3,444.

245,332,000f

ol\September:

Without

107.62

93.67

anthracite

coke

SERVE

Railroad

3,949

(tons)_-__™__

(net tons)

coke

Adjusted

109.60

end

107.62

103.13

Oct. 16

Group

;

16,189,000

__i

coal

DEPARTMENT

13.000c

Oct. 16

corporate
;

16,353,000

—

pounds)

period

Beehive coke
Oven

95.82

91.86

Oct. 16

Government Bonds

Aaa

262,235,000

33,057,000

___

------

all

2,000

(BUREAU

15.500c

.Oct. 10

DAILY

cars

output
of

orders

Oven

42.975c

Oct. 10

at__

YIELD

9,050,000

INSTITUTE—

delivered-

(tons

Bituminous

43.125c

Oct. 10

Group

BOND

13,159,000

21,053,000

INSTITUTE, INC.—Month of

smelter

CAN

25,788,000

export
4_—_

pounds)

Production

39.550c

Oct. 16

Average

CAR

30,000

29,606,000

September:

COKE

Oct. 16

MOODY'S

and

53,000

11,769,000

(barrels)—____

domestic

(barrels)--.

cars

Pennsylvania

J.J QUOTATIONS):

Group

imports

205,600,000

22,773,000

33,593,000

—

226,683,000

212,997,000

23,093,009
42,000

235,823,000

219,805,000

(barrels)—.—

(barrels)

freight

new

OUTPUT

PRICES DAILY AVERAGES:

Utilities

gal¬

(barrels)

(barrels >

ZINC

zinc

Stocks

$44.83

ton)__

Oct. 16

Industrials

7,053,615

August:

freight

2,000

$59.0S

Oct.

Public

(barrels of 42

output

stocks

for

Unfilled
—Oct.

Railroad

9.882,325

1,288,988

242,940.000

oil

RAILWAY

AMERICAN

corporate

Average

4-4;

255,245,000

r.U

Shipments

Oct. 11

Government Bonds

Aaa

8,122,597

5,539,915

tons)—

INSTITUTE—Month

consumption

Month

10,445,000

(net

—

imports

Month

Slab

11,300,000

Oct. 10

Louis)

BOND

MOODY'S

151,200

castings produced

September

crude

products

Orders

Louis)

(East St.

9,844,000

431,000

Oct.

York)

(New

8,730.000

656,000

;__Oct. 13

AND

lb.)__.

gross

(E.

Lead

*10,510,000

640,000

23,700

149,072

September:

Electrolytic copper—
Domestic refinery at
Export refinery at_:
Straits

10,410.000

4,125,600

16,837

104,534

(barrels )

New

Pig iron (per gross ton)

METAL

Oct.

INC—_

(per

oil

Increase

RESERVE

100

COMPOSITE PRICES:

Finished'steel

32,361,000

Oct.

kwh.)

(COMMERCIAL

IRON AGE

84,757,000

26,698,000

INSTITUTE:

ELECTRIC

FAILURES

112,817.000

46,602,000

Oct.

INDEX—FEDERAL

SALES

SYSTEM—1947-49 AVERAGE

199,356,000

Crude

AMERICAN

and

lignite (tons)
anthracite (tons)

Pennsylvania

151,207,000

for
of

August

output

$345,812,000

MINES):

4,300,500

4,106,224

INSTITUTE:

products

gasoline

Benzol

$372,488,000

Oct. 11

steel

each)

Oct. 11

BUREAU

4,272,133

17,080

;

STEEL

PETROLEUM

$491,008,000

municipal

OUTPUT

13,417

July:

$390,230,000

27,667,000
COAL

Natural

construction

State

AND

and
of

Domestic

construction

133,551

34,925

therms)—

Total domestic production

ENGINEERING

Oct. 11

151,624

4,460.871

Aug.

sales

tons)—Month

47,021,000
of

construction

92,406

35,717

4,339,257

end

therms)-.--.

gas

IRON

ingots

(net

NEWS-RECORD:

Ago

sales (M therms)

gas

AMERICAN

—

sales

Shipments

freight loaded (number of cars)
Oct.
freight received from connections (no. of cars)—Oct.

ENGINEERING

Mixed

801,559

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

August--:

therms)

AMERICAN

145,598,000

(short tons)

Manufactured

36,355,000

—

aluminum in the

gas

Natural

Steel

176,000,000

Oct.

__Oct.
Oct.

Year

Month

MINES):

tons)—Month

of aluminum

August:

2,066,000

Kerosene

short

Total

25,353,000

—Oct.

output

oil

AMERICAN GAS ASSOCIATION—For month

(bbls.)
Oct.
Residual fuel oil output (bbls.)
__Oct.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Oct.

(bbls.)

fuel

(BUREAU

Production of primary

2,386,000

Oct.

(bbls.)

output

Distillate

of that date;

are as

Month

98.9

Oct.

Kerosene

of quotations,

cases

either for the

are

Latest

(bbls.)

or,

Ago

"100.9

§2,504,000

Dates * shown in first column

V>«r

Ago

production and other figures for the

cover

that date,

Stocks

output—daily

stills—daily average

output

Week

INSTITUTE:

each)
to

runs

(net tons)

condensate

and

gallons

Oct. 21

month ended

WppIC

INSTITUTE:

month available.

freignt
Metal

and
live

from

t(Average

+Based on the producers' quotation. fBased on the average of the
platers' quotations.
^Average of quotation on special shares to plater.

tons

St.

Exchange.

Louis

but

exceeds

less

0.5c.

than

carload

""F.o.b.

Fort

lot

boxed.

Colburne,

§SDelivered
S.

duty

morning session of
t+Delivered where freight from East St. Louis exceeds 0.5c.

daily

mean

and

bid

and

ask

quotation

where

included,

London

The Commercial and Financial Chronicle

(1674)

(§2

the

company's history, and
with $677,063 in

compares

Mutual Funds

Assets Gain of 162% Bond

Largest changes in

industry
holdings of common: stocks in the
first nine months

Energy

Increases

were:

machinery

5%,

trie

utility

2.2%,

2.4%, elec-

and

the

aviation

Fund

crease

—oil

By ROBERT R. RICH

reported

162%

in total

ended

year

Total assets

rose

in¬

Yield Over 6%

assets

Sept.

30,
1956.
to $2,579,155 from

In Assets and Slis.
Total

Selected

assets

net

Aircraft 1,100.

It also added $62,amount of Allegheny Lud-

500 par

ity 1.2%.

purchases

ger

(2,000

Allegheny
Ludlum
2,000
Armco 2,000, B & O 2,500, Boeing
3,000, Chesapeake & Ohio 5,000,
Eastern
Air
Lines
5,000, Grand

income

investment

from

paid to shareholders of record in
the

first

cents

totaled

months

nine

Outstanding shares at Sept. 30 of
6,160,012 compared with 5,059,118
a

year ago.

At Sept. 30 common
resented

ments

0.4%,
cash

and

stocks repassets, corpo-

90.5%

bonds

rate

9.1%.

Govern¬

The

com¬

had investments in 107 com¬
panies, the five largest holdings,
of common stocks, by industry be¬
ing oil 16.1%, steel 9.7%, build¬
ing 7%, aviation, 6.7%, electric
utility, oa/0.
liny, 6.4%.
During tne tnira quarter tne
the third
the
pany

added

company

these

stocks

companies
5,000 shares, Atlantic

Coast

1,100

Line

siana Electric

closed-end

Are YOU

J Investing In
|

National Growth Stocks

Series?
a

providing

supervised

investment in securities selected
for

possible long-term growth of
capital with special consideration
given to corporations actively en¬
gaged in newer scientific develop¬

portfolio

mid,

eliminated

dealer

or:

Santa

Fe, Canadian Pacific,
duPont, Kennecott and OwensCorning Fiberglas. Sales of 2,000

Pittston Co. 5y4

1975; Suntide Refining Co. subordinated
5^2%
income
deben-

with $23.33

compares

...

policy

based.

quarter

net assets, Government securities
and cash receivables 11.5%, and

times

Harry L. Sebel, President of the
fund's
sponsor,
reports
for the

debentures

twice

0.8 %.

first nine months

^ oo. nfi4
$5,383,964

thp
the

fi„t
first

Fletcher

Nefll'

Established
120

Broadway,

than

Rav
are

Douglas

reporting companies have

The fund's investment pro-

concentrates

net

the

fund

uted

valued at $283,445,000, was

value

New

sold at

are

without

sales

CALIF-

kind, and

any

York

Oils &

1954.

City.
as
of Sept.

Gas:

(27%) 8,000 shares

and

individuals

24,232

fiduciary

accounts

total

8,770

The

Babcock

bustion

1,000

worth

(41%)

5,000

Wilson,

3,000

General

4.500

Com¬

General

Electric,

4,500

Cable,

1,500

Joy

United

Lab.,

Aircraft.

• i

2,000

j•

—

mutual
Materials:
,,

(21%)

2,000

Algom
®

Uranium, wts., 500 Anaconda Cop1,500

Borax

(Holdings)

by business organizations in¬
Included in
this classification are business
corporations, employee pension and
profit sharing funds, unions, insurance companies and other finan¬
cial institutions.
This group's mutual fund investments totaled
$110,855,000, or 20.1% of all institutional holdings in the 1956

3,500 Consolidated

Co.,

Ltd.

the two-year period.

16.7%

Consolidated
A/ri

Foote

Denison,

Denison
1

1,000

J
Lindsay

rnn

Mineral,

wts.,

1,000

1,500

Chemical, 600 Magma Copper, 500

INVESTORS

Copper,

MUTUAL

DEVELOPMENT

No.

-1954

Value

Total Institutional Accounts

61,494

100.0

$549,812,000

100.0

$3,941

Fiduciaries t

44,123

71.8

284.786,000

51.8

6,454

5,633

9.1

110,855,000

20.1

8,770

14.3

104,184,000

2,968

4.8

49,987,000

Business

FUND, INC.

Other

tors

to
record

stockholders
October

17,

12,

per

3,000

Ventures

fiscal

the

minor

prices

securities

ment

money

adverse

the

ef¬

certain

fund, yet it

favorable invest¬

opportunities.

We have

ac¬

cordingly been able to invest new
money, and also money realized
the

from
much

sale

securities

attractive

possible

was

yield

basis

ago."

year

Three Free Investment

Lectures

The limitless

investor

noted

Held

opportunity of to¬
will

described

investment

specialist
18, at 8 p.m. at
Ave.,
the
Jackson
office
of
Edwards
&
Oct

37th

Hanly, the Long Island brokerage
The

lecture

free

the

public.
The

speaker, Frank L. Valenta,

is well known
as

pioneer

He will

financial

the

circled

mutual

discuss

the

fund

impor-

tance of basic wealth during infiationary periods and investment
opportunities in international natural resource companies.

Mr. Valenta, who heads his

company

and

serves

International

own

director

Resources

Fund,

Inc., is known for his supervision

"in

the

successful

investment

than °ne-half billion dollars

of other people's funds.
wju

fure
on

followed

His lecby a film

the Kitimat project of Alumin-

ium

Ltd.,. the
producer

Canadian
huge

with

alumi¬

hydro¬

resources.

Mr. Valenta will discuss the same

1956

Foundations

Institutional
not

SURVEY X-

Avg. Holding

No.
35,821

Holdings

Value

Avg. Holding

106.0

$283445,000

100.0

$7,613

24,232

67.6

150,387,000

53.1

6,206

19,680

3,026

8.5

47,450,000

16.7

19.0

11,880

6,986

19.5

54,341,000

19.2

7,779

9.1

17,852

1,577

4.4

31,267,000

11.0

19,827

Inves¬

Classified

at another public meeting
Wednesday, Oct. 24, at 8 p.m. in
the Hempstead office of Edwards
& Hanly, 100 North Franklin St.

15,681

The

film

On
a

June

J1954
on

30,

Survey

June

30,

tBanks and

1956.

based

reports

Open-End Companies representing

70.3%

the NAIC's

125

Open-End

Members'

assets

Open-End Companies representing

65.9%

the NAIC's

111

Open-End

Members'

reports

•

serving

&
1

1954.
Individuals

Kitimat

project

will

Oct.

23,

public

held

the

first

investment
in

Edwards

assets

^
on

the

Tuesday,
series

lectures
*1956 Survey based

will also be shown.

1956

Organizations

Institutions

Dividend from
8C

value

past

increase

had

has also created

FUNDS

—Accounts—

-Holdings-

MUTUAL

November

asset

the

topic
SURVEY *-

—Accounts—

Income

electric

-1956

fects

the

has

num

O'Okiep

1954.

INSTITUTIONAL

net

during

"While

field.

Machlett

held

over

the

rates

Engineering, 2,000 Cutler

per,
accounts

3,026 to 5,633

fund

year.

firm.

ATOMIC

Payable

the

Heights

Manufacturing:

report, compared with $47,450,000

Investment

cline

Thursday,

Power.

serv¬

number

the market for

income preferreds are the principa* reasons for the moderate de-

83—18

Hammer,

colleges—accounted for

$54,341,000.

last
with

preferred stocks,
^ke rapid rise in interest rates

by institutions.
were

(11%) 1,500 American
Gas, 2,000 Florida Power
Light, 2,000 Houston Light &

Newport News Shipbuilding, 2,500
Nbrth
American Aviation, 1,000

compared

rate securities such

money

day's

Utilities:

Mfg.,

and

Aug.

a year ago.

aj? government bonds and certain

1956

DIVIDEND NOTICE

Quarterly

called

Natural

the types of institutions holding mutual

shares reveals that, fiduciaries—banks

schools

assets,

In its report, the Keystone Fund
commented, "During the past few
months, money rates have under-

than

30,

Union Oil & Gas "A."

reporting companies showed little change; being 9.3%
1954 studies, respectively.

creased from

Lk/

$42,078,45:7,

is managed and distrib¬
Ralph E. Samuel & Co.

Holdings

fund accounts in the latest study worth $104,184,000 or 19% of all
institutional holdings. In 1954 this group had 6,986 accounts valued

1032

building

net

were

$41,228,123

$8.95.

were:'

and

fRANClSCO

asset

loading charges of

data

for the 1956 and

there

security
share, net

$9.73

from

Total

Petroleum, 1,600 Skelly Oil, 2,000

ago

months

the

$8,941, compared with $7,913 two years ago. Between the two
dates, the value of institutional holdings as a percentage of the

years

cents

asset value per share decreased

six

those

Energy Fund shares

over

com-

The broad| classification of institutions and foundations—in¬
cluding churches and religious organizations; fraternal, welfare
and other public associations; hospitals, sanitariums, orphanages

Booklet

SAN

those

$150,387,000, accounting for 53.1% of all institutional holdings.

mutual funds?

velopments.

fund

realized

and lts effect

company

British Petroleum, 1,200 Colorado
Interstate Gas, 2,500 Royal Dutch

Two

open-end

The average institutional account in the latest study amounted

mutual fund investments

680

companies whose
indicate the adoption
and application of new
energy de¬

trustees, guardians and administrators—continue to make
up the largest category. Of total institutional accounts in the latest
study, 44,123 or 71.8% are held in the name of fiduciaries. These
holdings are valued at $284,786,000, representing 51.8% of all

Sources' may

•

Fund

operations

earlier

10.5%

highest-grade

well

study was based upon reports of 58 open-end
companies, representing 65.9% of the Association's 111 open-end

ing

FREE

was

panies active in energy production,
generation, transmission, market¬
ing, control and measurement as

total of 61,494 institutional
This is a substantial

institutional accounts,
reported in the 1954 survey.

assets at mid-year

specializing

clear.

worth

35,821

members'

power.

gas, and half

petroleum

Including
profits

energy industries, both the
familiar sources as well as nu-

market value of $549,812,000.

A breakdown among
New York

much

in the

similar survey conducted by the NAIC in October, 1954.

The

are

increase, both in number of accounts and dollarrvalue,
total

that of 1955. . And, during the next gone a substantial rise, and while
quarter century, fulfillment of the the securities held by the fund
M Frev and Robert
fxpectations for useful energy have not been immune to tnese
^w affiliated with ^om nuclear, and possibly solar trends, yet they have been less

Colo

1956.

from

that by
using three

electric

in
1955.
Further, by
1970 Western Europe's petroleum
requirement will be three times

$500 Million in

dollars

investment company shares

indicate

much natural

the

Broadway.

Hold

half-a-billion

Fund

for

will

much

investment

1930

New York 5,

century
as

Energy

Investors

Energy

»ma^m~rCtor^.MsO ^dIi^<?.roge"
realized."

FIF

$764,950, the largest September in

Institutional

(Special to The financial Chronicle)

DENVER

"were

1956

con-

consumed

FIF Adds to Staff

Sales in the

September

the

America

again

$8,101,068,
the
highest for the first three
quarters of any year in the company's 24-year history. This com-

Darp„i witu
nares
with

and

1970

investments

new

in the fund amounted to

g?"sl|5T

common

J?^erred stock

„

Estimates

shares included Anaconda

companies

United States and throughout the Republic of Chile external sinkwestern world will go ahead by ing fund 3% bonds of 1993; and
leaps and bounds and it is on Republic of Peru external sinking
this
thesis
that
the
investment fund 3% bonds of 1997.
"
1 ~ A

of capital stock outstanding,
Holdings of

and the progress

usage

principal

10,000, International Harvester 2,000, International Paper 4,000.

and

Research Corporation

sub1971;
and 6J/4 notes of
Plan

deoentures of

the

stocks on
Sept. 30 represented 87.7% of total

assets of the

National Securities &

the

Finance

energy

»n June 30, 1956 and with $21.39
per share on Sept. 30, 1955, in each
case based on the 1,080,000 shares

from the
American Cyana-

were

Per

Rubber 9 900

Companies

tus and other

obtained

Budget

ments and

technologies. Prospec¬
information may be
from your investment

43/4s, 2030; New

ordinatect o%

1980;

Domi-

Indiana

14,000, United Airlines 2,000, and
U

The 65

stock mutual invest¬

common

ment fund

"B"

after deducting a quarterly divi- nected therewith
Mr. Samuel tures of 1962; Venezuelan Centra
dend ot 12 c?"!s Pfr. sharf Pay- further stated that, As far as we' Simon Bolivar, series 5-8, 6%
able Oct. 15, 1956. This asset value can see energy usage in the bonds due serially 1961 to 1962;

Service

Public

accounts with

National Growth Stocks Series is

income

utes the fund's record to "

of open-end (mutual
currently held by institu¬
tional investors according to a study released today (Oct. 18)
by
the National Association of Investment Companies.
The study is based upon a survey of the shareholder accounts
of 65 open-end investment companies representing 70.3% of the
Association's 125 open-end member companies' assets as of June 30,

Interested In

etal

300, North American Aviation 4,000

American & For-

are

eign Power Co. junior debentures
4.gs Gf 1987; Missouri Pacitic gen-

nick, reports a net asset value of
$23.16 per share on Sept. 30, 1956,
—

fund)

6%' in interest,

continuance of the amazing growth

gram

The bonds

York Central collateral trust 6s of

Mutual Fund Shares; Average Account Is $8,941

paying over

Ralph E. Samuel, President of
Energy Fund Incorporated, attrib-

3,000, Goodyear Tire

2,000,

$123.94

company,

against

Shares outstanding
18,001 at year's end com-

pared to 7,920 at the beginning of
the period, an increase of 127%.

Corporation,

Dominick

$143.28
ago.

stood at

investment

managed

year

ended

2,750, Jones & Laughlin
15,000, Minneapolis-Honeywell 3,-

Loui¬

Central

Manufacturing

Joy

National

Union

month

ican Airlines

2,000,

were:

20 cents in 1955.

vs.

■,/,

Corp.
Reports for 3rd Quarter

by Edward P. Rubin,
President, were $58,574,116, equal
to $9.51 a share, compared with
$47,259,726, or $9.34 a share on
Sept. 30, 1955. In addition to the
gain in asset value per share, a
61-eent capital gain distribution
was paid in January,
1956. Dividends

National Shares

shares) in stocks previously owned

reported

one

lum's convertible debentures. Lar¬

American Shares at Sept. 30, 1956,
as

equal

•

its

Keystone Income Fi
for the fiscal year

report

Selected American

Reports New High

Thursday, October 18, 1956

Energy Fd. Reports Keystone Fund
Holdings

Sep!

1955.

tember

Trustees, Guardians and Administrators.

Hanly's

Valley

Sunrise Plaza.

titled

"The

Stream

office,

This lecture

Current

Stock Prices" will

Outlook

begin at 8

en¬

for
p.m.

Number 5578

184

Volume

The Commercial and Financial Chronicle

(1675)
-

Continued from page

the goods and services available to " nomic
point of view, that there is
the civilian economy.
We cannot' no other continuous source out of
afford to continue them at
present which these costs can be met.
levels and at the same time sup¬

How to Tackle the Problem of

High Employment Sans Inflation
should

not

faster

permitted to

grow

during periods of maximum

areas

the

of credit

use

production and employment than
the growth in the national prod¬

pay

than

the Fed¬
eral Reserve recognized the accel¬
erated economic activity that was
developing and adopted an -in¬
creasingly restrictive credit policy
by raising the discount rate five
a

year ago

times from 1V2 to 3%.

about 1V2%; whereas, the

year to

national product
this increase was
than compensated for by a

growth

6%.

was

the

But,

growth in the velocity of existing
funds of nearly 7%, making an
of
about
increase
8V2%
in ef¬
fective

of the exiscing money

use

supply.
The

de¬

demand

turnover

posits at present is more than 22
times a year, and I believe this is
and

record

has

It reflects the ex¬

the maximum.
treme

reached

about

tightness of the money mar¬

ket.

real

The
banks

member

the Federal

Reserve

deterrent

using

discount window

freely is not the
3% discount rate but the pressure

by the Federal Reserve Banks to
certain

make

isn't

that

their

ness

being

undercut

policy

the

dis¬

Banks which

window.

count

effective¬

the

restrictive

are

Federal Reserve funds to
capital loans of any kind are
likely to be denied Federal Re¬
serve credit if they continue mak¬
ing such loans.
using

make

Present Restraints and Selective

Controls

fully with the restric¬
policy being carried
out by the Federal Reserve.
In
the face of much opposition and
•inadequate powers available to it,
agree

feel

done

Federal

the

very

Reserve

creditable and

has

cour¬

ageous job in curbing the strong
inflationary pressures.

The

Federal

fiscal
must

its

Reserve,
as
the
for the government,
into account, through

agent
take

operations, the
Treasury's needs brought about
by new borrowings or refunding
operations.
With more than $50
market

open

billion in War Savings Bonds

held
paying interest of

by the public,
3%

less, it must a^so find itself
in
further
increasing

restricted

the discount rate.
If

the Federal Reserve

control

and

consumer

credit

credit,

did

had

selectively
mortgage

stock

market

could have curbed

the

excessive growth of these types of

credit

avoided

and

the

production and hous¬
construction.
I believe tnis

stimulated

capital

the

entire

policy,iseems

money
that

trols

are

Full

indicate

than present credit con¬
needed to combat infla¬

tionary forces.* V

market

goods which, at the

for

pres¬

ent

time, is the greatest source of
inflationary pressure. As an ex¬

well may have to learn that ad¬

ditional and
ures

are

selective

problems
economy."
A
One

deal with all

necessary to

the

meas¬

buoyant

mining

billion,

are

which

billion,
$28
increase of

$35

they

year ago

were

prob¬
lems of monetary management is
in the adoption of monetary con¬
trols

sufficient

inflation

curb

but pot so severe as to create de¬
flation.
y.:
The principal credit restraint at
the present time is not the inter¬
est rate

the cost of money,

is the lack

of its

inadequate
for

entirely

are

meet1 the

mortgage

but

availaoility. The

savings of the country

demand

and

money

capital

investments, and with the restric¬
tive monetary policy of the Fed¬
eral Reserve, practically the
only
credit available from the

commer¬

cial banks is the

financing of cur¬
production
The
principal
reason why high
interest costs is
rent

sufficient

Federal

the
its

make

Reserve

greatest

contribution

toward

maintaining economic sta¬
with
maximum
employ¬
ment and production, it should be
given broader powers over the
bility

use

overall

credit

than

powers

the

indirect

row

has

—

change of reserve requirements of
member banks, open market op¬
erations, and changes in the dis¬
count rate.
These are general in
their effect and are usually either
too slow or too drastic in reaching
the segment of the economy that
should be curbed

they

affect

or stimulated, or
adversely the other

short supply)

would be increased

deterrent

borrowing

is deductible from Federal Income

Taxes.

This

than

chat

means

in the rate of 1 %

crease

half

one

in¬

costs less

cent;

per

or,

the

business borrower who pays a
rate
of
6%
is
actually
out-of-

pocket less than
To

maintain

conditions, unless

government substantially

de¬

its

Since

credit

policy

Reserve. Budgetary cash surpluses
reduce the

spending power of the
public and are, therefore, defla¬
tionary in their effect. While, on
the other hand,
budgetary deficits
are inflationary as
they add to the
purchasing power of the private
Under

economy.

tions

could

that,

the

contribute

ducing

present

living.
At
purchasing
4%

the

government

toward

inflationary

cutting

its

re¬

pressures

expenditures
in my opinion, are alto¬
too large for peace-time

which,

gether

own

economy.

ernment

that

routine

exoenditures

expanded

28%

will

gov¬

have

^n the past four

Although there should be

years.

for

would

than
and

substantial

cuts

in
re¬

are to be made
they must
military and foreign aid uro¬

I believe at least $5 billion

these

expendi¬

the country could have
effective defense if our mili¬
and

tary concepts
with

date

off

atomic

in which

jet, guided missile,
hydrogen bomb age

live. Our military ex¬
should be used solely

penditures

for the prevention of war.

the

much

spent
eign

nearly $60
aid.

friends

nor

tinuation

penditures.
china

are

years

billion

are

for

have
for¬

gaining neither

influence
many

these

con¬
ex¬

Yugoslavia and Indo¬

recent

examples.

These hu^e militarv P"d fore1'cm

aid

expenditures

greatly

building

equipment has increased

even

living. Dur¬
ing the past 8 years, the cost of
living has1 increased about 15%,

whereas the cost of most consumer
durable and capital goods, includ¬

ing

housing,
to

has. increased
than

100%.

from

This

largely due to the increased

reduce

cost

of labor, composed of wages and
fringe benefits. In the case of or¬
ganized labor, costs have increased
generally from 40 to 50%. This

than

the

increased

pro¬

ductivity of labor and, therefore,
results in

increased costs.

time

the

At the

earnings

the

larger businesses have been high.
However, these larger earnings
have made available

substantial

portion of the funds used for the
huge capital expenditures which
provide our great increase in oroduction

well

Further increases in wages,

sal

result

tracts

which

the

have

labor

been

being made, an alarming
price spiral is developing.
situation

present

unchecked,

con¬

and

are

wage-

If the

permitted

further

flation is inevitable.

price

in¬

Under these

would

the

production

the

which

were

50%

personal income

the

3.9%.

disappointed that both of
political parties are encourag¬

our

ing

rather than dispelling eco¬
As an example—
Republicans are talking loose¬
ly about a four-day working week,
which would greatly reduce the

nomic illusions.
the

supply
While,

of
at

goods
and
services.
the
same
time,
the
Democrats are talking about main¬
taining those eligible for retire¬
ment
the

Federal bounties equal'to

living standards, which
substantially increase the
demands for goods and services.
These programs would greatly ac¬
centuate the present inflation
problem.
past

would

conditions
trol
we

problem is to con¬
inflationary developments if
our

to maintain economic sta¬

are

bility.

This

situation

continuation

calls

the

1929,

The

same

for

that

the

immense

technology

benefited

people.

civilization

maintaining
expenditures
reducing the public debt.
Increases in wages and salaries
must follow and not lead an in-,
government

and

crease

not

productivity if there is

increase

living.
In

the

•

view of
we

the

cost

paradoxes with

confronted,

I am
sure you will feel as I do, that if
we
are
going to have the groWth
of which we are capable, withoiit
inflation, something has to give.
As I see it, next to maintaining
the
peace,
the most important
are

problem is to prevent inflation. It

injures

the

most

aged,

the

pen¬

sioner, the widows, the disabled,
the most helpless members of our

society.
to

diminishes

work, to

the

future.

existence

imperils

desire

the

very

capitalistic

our

that all of

mocracy

the

and to plan for

save

efforts

our

designed to preserve.

de¬
are

As Senator

"It

evil

can

war

destroyer almost

continuation at
levels of consumer and
personal income taxes; and re¬
duced
spending by the Federal

For those who want

destroy

democracy and capitalistic institu¬
tions it is

cheap way of achiev¬

ing their collapse."
DIVIDEND

NOTICES

present

Government, particularly in the
field of military and foreign aid
programs.

Furthermore, the public must
save more-—spend and borrow less.
DIVIDEND

R. J.

Reynolds
Tobacco Company

NOTICES

Camel, Cavalier, Winston & Salem
cigarettes
Prince

Dividend No. 212i

Albert, George Washington
smoking tobacco

quarterly
dividend of twenty-eight
cents
per share on all the outstanding stock of
Company has been declared payable October
31, 1956 to stockholders of record at the close
of business October 22, 195G.
(28c)

the

1955

QUARTERLY DIVIDEND

STRAUSS

OTTO W.

President

Vice

and

Treasure;

DIVIDEND

NO.

share has been de¬

per

clared

dividend

quarterly

cents

study

Hudson

the

every

has
great

past

and

changes
wrought
mass

the

command

lavish

make

has

"Worth

dollar

one

the

Common

and

dend

of record
ness

($1.00) (Cana¬
dian) per share has been declared on
the Capital Stock of this Company,
both payable December 17, 1956 to
of business

per¬

record

the

mentioning

the

1956

j.CONRAD,

Secretary
W;nston-Salem, N. C.

October 11,

1956

November 16, 1956.

J. F. McCarthy, Treasurer.

the

known.

ever

the close of busi¬

November 15,

dollar

one

shareholders

Company, payable De¬

cember 5, 1956 to stockholders

and

dian)

possible.

today Americans share
highest
standard
of
living

world

Dividend

twenty-five cents ($1.25)
(Cana¬
per share and an extra Divi¬

only

service

of the

Smelting Co., Limited

and

age

Bay Mining

GOULD-NATIONAL

fact

that this momentous

development
has been taking place not in Com¬
munist
Russia
but
in Capitalist

most

all

the

cialist

closest to the

come

goal

dance for all in

interests

are

labor.

with the real

fully realize

importance, both from the

cial

and

economic

so¬

point of view,

in having continuous employment
of labor at as high a real wage as

adequate
is

the

which

our

New

Dividend No. 95

j
i

Jersey

1956,

tors

Corpora-

tion declared on the Common
Stock of the Company a dividend of twenty cents (20c) per

;
1

Aircraft

share for

Radio

(10c)

per

share, making a total

of thirty

both payable on November

buying power
objective toward

ber 2, 1950.

1956

national economic pol¬

However,
wage advances and fringe bene¬
fits must, in general, be paid out
of increased productivity of labor.
It should be obvious, from an eco¬

The Board of

Directors today

declared

dividend

of A2Vi$ per share on

icy should be directed.

•

the fourth quarter and

year-end dividend of ten cents

NOTICE

DIVIDEND

the Direc-

and Industrial Batteries

On October 10,

consumer

central

Manufacturers of Automotive

Boonton

RADIO

will permit. In
employment with

income

fact, maximum

SAINT PAUL, MINNESOTA

AIRCRAFT

so¬

providing abun¬
classless society."

My sympathies

CORPORATION

nations, the one that clings
tenaciously to private capi¬

talism has

the

BATTERIES, INC.
»

great indus¬

(30c)

Stockholders

the

cents

record

J
j

j
s

President

October

1956

KINGSLAND, Secretary

will make

of Ninety cents

A H. DAGGETT

this

14.

dividend

(90c)

per

1956.

payable

of record October

Common Stock,

November 1,to shareholders

total

Payment

paid

!
i

14,

close of business Novem-

November

share,

per

itself.

monetary and credit policy by the

the favored few
were able to enjoy a
high stand¬
ard of living, because thev alone
sonal

restrictive

Federal Reserve; a

especially striking to real¬

which
have

living,

want.

time

same

INC.

national

seems

Douglas has said:

Recommended Program
It should be apparent from what
have said
that under
present

one

New Class b Common stocks

"It is
.

the

which

states:

ize

present

would be feeding inflation.

73%; whereas, dividends de¬
creased in the same period from
to

We can't have lower taxes while

were

5.8%

which

Makers of

.Century
Fund,
salary disbursement0

and

the growth of
employment. To

and

COMBUSTION ENGINEERING,

Twentieth

wages

ther increase in the cost of

permit the money supply to grow,
so as to finance
wage-price spiral,

recent study of

This

economy.

stop

soon

Output

According to

fringe benefits by labor,,
depend on increased produc-i;
tivity and not upon the pressures;
of organized monopolistic
groups.
The unjustified price increases
of big business, made possible
by
present shortages, must be curbed.
We can't have cheap money and
easy credit, which nearly every¬
one seems to want, without a fur¬

conditions the

growth

aries and

must

productivity.

Wage and Dividend Share of

national

past

Had it not been for

faster than the cost of

brought uo-to-

were

the

and

declining at

The cost

trial

tures

power

declined

be in

cut

dollar's

has.

ductions

the

have

America.

grams.

rate

But

Foreign Aid Costs
understand

this

per year.

could

Government Can Cut Military and
I

has been

drop of 10.7% in the farmers'
income during the past four years
the purchasing power of the dollar

condi¬

booming economic activ¬

feel

March there

increase of about 2% in the cost of

the fiscal policy of the government
is as important as the
and

Political

apparent. To stop the growth of
the money supply would stop the

stability

monetary
the Federal

Both

creasing savings and thus reduc¬
ing inflationary pressures.
; 1

3%, after taxes.

economic

with

Parties

accordingly.
Either of these ac¬
tions would have the effect of in¬

curb"

because jt

Disappointed

difficulty of stop¬
ping inflation by the use of mone¬
tary and fiscal policies should be

same

business

cculd

25%.

investment

of the most difficult

room

ex¬

were

corporation taxes,
funds
(which are in

expenditures, or the
-British i Chancellor
Macmillan public increases its savings by re¬
recently said: ^'With governments' ducing its expenditures, or the
pledged to full employment and capital expenditures of business
production, they cannot push their decrease, a continuation of the
Federal Reserve's very tight credit
fiscal
and
monetary policies to
the point of deflation. Therefore, policy is necessary to keep infla¬
tion under control.
these policies ^tre'not sufficient to
control the booming economy in
4% Annual Inflation in Rate
Great Britain, and other countries

expenditures, if effective

and

surplus

if these cuts

or,
reduce

used

creases

Inflation

these

ing

budgetary

increased by cutting these

Under present

some

whereas

government's
was

the

Without

expend¬

capital

annual

goods. The inflationary pressures
would be materially reduced if the

;

Employment

itures being made by manufactur¬

ample,

ply the growing demands of the
public for capital and consumer

penditures;

abnormal

automobile

ing

■;

during .ithe past year, j in
spite of the Federal Reserve s tight

ity,
the authority in 1S55 to

;

ments

not

tive monetary

-v.

huge demand for credit to
for immense* capital invest¬

±ne

This action,

together with the open marKet op¬
erations, kept the growth of th&
money supply
(demand deposits
and
currency)
during the past

the

i$ necessary and de¬

sirable.

uct.

where

ecoiiomy

19,1956.

The Commercial and Financial Chronicle

(1676)

from the Nation'*

to improve the

WASHINGTON, D. C.
the

comes

Budget

feather

procedural

Now
with

—

Bureau

V/lff

the

tabulates

Cackadoodle

success

saying

release

down

account¬

Percival

Director

the

spective

Budget

have

do the

and

vidual

needed

agencies."

of the proposals pend¬
ing
before
the
last
session,
growing out of the Hoover Com¬
mission
reports, was that all
"budgets should be kept on an
accrual basis and all appropria¬
should

limited

amounts spent in

Trust

This

designed to do

was

make

to remain
til spent.
ated
new

-ly

one

billions

hence,

years

.limit the

(1)

they

They

this

the

an¬

political world, and

would

magnificent

"Miss Ploop, I prefer 'We just signed up another client'
to
'We just hooked
another fish'V

for those, like

Administration,

like to

Wants

ity"

being

are

accumulating

should

ernment

•cost and accrual

tem.

The

kept

Economy

1954

fiscals

accounting sys¬
Congress

large the staff

Democratic

in the Budg-

men

et Bureau have

commitment toward economy in

of the

unfettered

amounts

government.

appropriated to

the amounts spent.

hereafter
bases.
the

government

figured

House,

and

accrual

their

should
cost

The

they

way

their';

would

concepts

Mr. Brundage ordered in

whom

Furthermore,

what

was

from

they

take

directions.

latest effort is

ing over-sold to create the illu¬

posing, 52-page set of pamphlet

sion the present Administration
still
thinks of economy,
it is

instructions
resoundingly
en¬
titled, "Improvement of Finan¬

nonetheless

cial Management in theFederal

effort of the

Government."

tient
if

occurred

desire

istration

recommendation, it would have

save

resulted in

cedural

substantive

omies for years.

accounting

substitute

mination
and

the

money.

both

For gimmicks,
flat

the

Congress

prove,

the

economy

believed, of

millions

1957, the

pres¬

standing

quished

nancial management in

government,"

disclose that in

two

dollars,

tables,

(1)

reduced

does

"obligational

the

highway

new

the

;

way

ac¬

highway
in

highway

permanent

fund

trust

While

will

meaningless

its

high¬

actions

Over

di¬

(From

mid-year review

TRENDS

Budget Bureau issued

Fiscal

1953

1955

1957

Obligational

Actual

Major national security $57,298

Authority—

International
Interest

2,231

6,583

$40,327

2,304
6.438

7,156

Incr.

Decrease

1953-55

(six

$6,671

718

573

5.126

pany,
more,

14.678

19,804

$57,076

$69,743

—$23,232

+$12,667

Major national security $50,363

$40,626

$40,824

$9,737

$198

$9,539

400

5.526

East
2,216

2,181

2,144

6,438

7,156

145

718

573

15,110

15.324

18,768

214

3.444

6.583

(six

groups)

______

time
+

budget

expend.

$72,274

$64,570

$69,093

$9,704

$4,523

$5,181

—

Highway
(In

(From

estimates

report of

Senate

Trust

Fund

Finance Committee in

Receipts Allocated to Trust

Authoriza¬

Fund

1958

advance

Esti¬

tions for

New or

Ittereased

$868

$597

of enactment)

mated

Approps. to

tures

.$1,465

Balance
End of

Expendi¬

Trust Fund

Total

Trust Fund~

$2,000

$1,150

Year

$420

1,223

748

1,971

2,550

1,600

805

1959__

1.268

780

2.048

3,075

2.050

1.299

792

2.091

2,600

.1972

1,979

1.180

3.159

tions

14,518

38.202

38,206

the

United

Sulphur

States—In¬

York

15, N. Y.

TRADING

MARKETS

Botany Mills
S. Campbell Co. Com.

United States

Envelope
Morgan Engineering

National Co.

Orl Marks
FOREIGN

SECURITIES

50 BROAD STREET

Exchange
HANOVER 2-0050

GArfield 1-0225

Mo.

•

Ho. Inc.

SPECIALISTS

NEW YORK 4,

N. Y.

TELETYPE NY 1-971

Riverside Cement

Sightmaster Corp.

LERNER & GO.
Investment

Securities

10 Post Office Square, Boston 9, Mass.
Telephone

'liHi'ili

-i'r- ■

1+ r...

Banking
Depart¬
ment,
Manufacturers
Trust
Company, 55 Broad Street, New

Fashion Park

320 N. 4th St.

New

Indian Head Mills

TEL:

Lcuis

•

SCHERCK, RICHTER COMPANY
St.

Time

included

ternational

Bought—Sold—Quoted

Teletype

compared with

Standard

City—also

575

23,684

16-year total,

Wagner Electric

SL 456

1957
through¬

countries

—

Pipeline Common

Stock

from

325

________

Bank of America

Midwest

effect

of the standard time varia¬

map

821

1960

Showing

—

1956 to March 31,
100

over

York

Texas Eastern Transmission

Member

28,

Eastern

millions)

Delhi-Taylor

Bell

$10.

Chart

out the world as

1957-72

Pan American

(Paper)

differences

3,658

1956 Edi¬

Inc.,
122
Street, New York 17,

Time

Oct.
Total

Anheuser Busch

Pacific Northwest

—

Association,

42nd

World

non-defense

Statistics

Balti¬

United States Pulp Pro¬

—

ducers
Budget Expenditures—

Modern;

Clyde Wil¬
Divi¬
Credit Com¬

—

Commercial
14 Light
Street,
Md. (Paper)

Wood Pulp

tion

International affairs

Factoring

—$10,565

oblg. auth.

1957—_____

Olin Oil & Gas

sion,

145

14,278

new

Securities- Review,

liam Phelps—Educational

—$16,971

—

$80,308

groups)

Re¬

year—Department 13, Over-

Business Finance

1953-57

1956-57
4

Decrease

Domestic non-defense

Total

Securities

—

Jenkintown, Pa.

of Congress)

Incr.or

—$23,642
■+'
155
—

Securities

Counter

the

Role

Incr.

Ests.

$33,656

and

adjournment

Decrease

2,149

affairs!

Counter

the-Counter

•"

Fiscal
New

after

Panoramic

Monthly magazine ana¬
lyzing unlisted securities—$4.50

millions)

(In

—

Securities Review,
13, .Jenkintown, Pa. — $4.

view

per

Law

Universal Match

the

Dept.

version of funds from the budg-

government-

Y. —$6.50.

Counter

become largely

view of the

-Handbook — Guide to 550 un¬
listed
corporations—Over-the-

make

the

from

fund,

trust

16,

Security & Financial

Independence

Over

Con¬

theoretically

York

program for personal
prosperity from the first piggy
bank to the last bequest — Ir£
U. Cobleigh—Hawthorn Books,
Inc.,
70
Fifth
Avenue,
New
York 11, N.'.Y. (Cloth) $4.95.
;

excise taxes

effect.

will

this respect will

pro¬

Present

and

Avenue,

Fourth

expanding

•

has relin¬

over

diverting

appropriations

BUDGET

author-

Colorado Oil & Gas

Practice

Abramson

440

How to Gain

gress

not

crops

the

remain

cumulated under price supports,

(2)

virtually

control

program

the Fed¬

dis¬

out¬

Wiley &

New

over

expendi¬

and

period in which the

the programs of

surplus sales of farm
in

loans

virtually

control

expenditures during the 16-year

instigation)
of
the
new
pro-,
gram
for "improvement of fi¬

(1)

■

Congress

Tax

organization here

tures.

closed how the Eisenhower Ad¬

spend

appropriations

brags (probably at White House

eral

insured

and

Congress

surrendered

Interest

following

Forecasting

Adolph

Sons, Inc.,

this little pro¬

feather

ministration

There is

the

Appropriations-Spending Record

money.
\

the part of the Admin¬
and

and

spending

and

has

While the Budget Bureau now

Domestic

save

determination

instead,

great utility.

both Congress and the Adminis¬

tration,

only

simultaneous

money, even

would

offer

and

pa¬

deter¬

Congress

Administration

The

econ¬

otherwise,
for

If,

there

Congress had passed

hours of

many

effort.

the original Hoover Commission
no

Budget Bureau staff

representing

Concept Limited
Even

solid and gigantic

guaranteed
programs,

of ap¬

even though the
intentionally be¬

im¬

1956

ent year.

gram,

"implementation"- of

latter

had

achieve economies. They do not

admonition that

accounting

they

have their way, however. They
are the employees of the White

But it kept what amounted to
an

fiscals

only

1955,

whole trend

propriations

occupational

^knocked out the scheme to pro¬
vide, for the eventual relation

and

the

reverse

arduously, its work is not dep-'
recated
by observers. By and

unspent

appropriations, and (2) actual
expenditures from fiscal 1953 to

As for the staff of the Budget
Bureau which worked long and

idea that the books of the gov¬

—

Russell H. Mack—John

made, before the electorate.

Business

promote the

fiction that economies

the

was

recom¬

views.]

extrava¬

keep

provide

Eisenhower

who

year.

Subsidiary

coincide with

own

either

would

could

that

amount

-spent in that

the "Chronicle's"

only two func¬

serve

hostile

the

system got going eventual-

some

pretation from the nation's Capital
and may or may not

genuine economies.

form of escapism

after the

year,

will

commitment

tions:

The amount appropri¬

any

cient tradition of economy alive

hand for years un¬

16-year high-

the Administration

mendations

away

billions

the Commission's

(2)

tens

the

[This column is intended to re¬
flect the "behind the scene" inter¬

recommendations

gance,

ing

agencies, these

under

program: -

way

Hoover

versal

literally

In the light of the almost uni¬

with the practice of appropriat¬

Federal

-status

that scores

alleged

table of pro¬

receipts, expenditures,
authorizations, and trust fund'

the

that

Fund

spective

of what they are

is just

there

when

one year.

any

ordi¬

adopted

Congress

the

for

with no re¬
straining upon the present up¬
ward surge of Federal spending,
can

indi¬

One

tions

Commission
be

invested

expenditures.

There follows

recommendations

reverse

scores

infer

not

intended.

legislation and to include other

improvements

Commission's

ment, designed to give effect to
recent
budget and accounting

risen

This

thus

money

nary

Coincidentally,
pro¬
Federal
expenditures
a couple
of billion.

adopted.

Brundage, the
has, in
bis own words, "called upon all
Federal agencies to establish a
systematic program for the im¬
provement of financial manage¬
ing.

SECURITIES

percentage of the Commission's
recommendations
had
been

boils

"special" Treas¬
with the result

the
budget would
be
charged with the interest on the

given

press

eral

all

securities

that
vs~

recom¬

back the engulfing tide of Fed¬

invested

ury

It recently issued a

mendations.

sweep

the high¬

Any amounts re¬

maining in the trust fund would

the Hoover Commission

spending.

budgetary situa¬

tion by slowing down

Crobgrass

permanent appro¬

Furthermore, the Administra¬
will be able to do nothing

and•
which

the

way program.

/I
xJL

Capital

under

priations.

tion

Washington...
Behind-the-Scene Interpretations

Thursday, October 18, 1955

BUSINESS BUZZ

Teletype

HUbbard 2-1990

BS 69

Full text of Commercial and Financial Chronicle : October 18, 1956, Vol. 184, No. 5578

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