Full text of Commercial and Financial Chronicle : October 25, 1956, Vol. 184, No. 5580

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itofcw

oP&ii
ny

°CT 26 1956

ESTABLISHED 1S39

^^$rsTRA#"
an

IUff. U. 8. Pat. Office

Volume 184

New York

Number 5580

Price 40 Cents

7, N. Y., Thursday, October 25, 1956

Copy

EDITORIAL

Economic Key Issues
Oi Today and Tomorrow

We See It

As
i A

good many commentators, each in his own
have felt it their duty to explain to a some¬
what bewildered public the relative tightness
that has developed in the money market. More
people have wanted to borrow more money than
there was to lend, so the story often goes—an
explanation which explains little or nothing.
Conscious of the insufficiency of this account of
what has been going on, many observers have
gone a step further. In some cases they have said
merely that the Federal Reserve authorities have
pursued a policy of restriction and that hence
money had become scarce and more cbstly to
borrow.
Others with greater insigttf > iiito the

way,

nature of the situation have insisted that

authorities

had

done

nothing

dent finds support

billion to $17.5 billion rise in gross assets which

how it

seems

postwar prediction that the future of gas

behind it;

set

minds

our

having

upon

good things of life than
or

we as a

buy what

in the final

of the

want—the

comes

have tried and

us,

purchasing

nomic

power

today

which

between what

and

their roots in the

social

just

trends

have

hectic days of
mediate

forces that

the

records

trying to bor¬

perpetuated

demand for ourselves and

its

forever under

back in the

ice

Government

intervention?

produce rather than between
address

•An

New

York

State

Luedicke

Dr.

Bankers

Assn.,

volume

gas

continued the steady
begun at the close
Y •

industry,

story of growth, and
it has become almost
commonplace. But it is well for us
to remember that this growth has
been' the result of successful plan¬
ning
and
aggressive,
competitive^
programs of merchandising and re¬
search backed by production, bransmission, and distribution know-how
a

■

Dean

and

And

once

page

served,

Yes—ours is

it be

taken great strides for¬
scored in number of

been

to many of us

can

And if not,

ample

march of progress
of World War II.

and the im¬
period—and even
the days
of the

Can the postwar boom go

steam?

own

are

well known symbol of our great serv¬

were

Investment Problems

into two:

gas reserves

sold, and income received. When the
final report for 1956 is written, it
will show that the Blue Flame, that

the
the fate
of
the * postwar boom.
How much
longer can it last?
•••••'••
This question actually breaks down

Heinz E. Luedicke

has been

have

customers

economic key issue today is

one

page

New

-Reduced to its simplest terms,

all

avers

Once again our industry has
ward.

Depression and the New Deal.
I.

Mr. Mitchell

"many years to come" and calls attention to progress
achieving unity among all segments of the industry.

war

postwar
back c in

further
Great

are

Continued

for

staggering potential market for new gas appli¬

sales.

ance

eco¬

developments

Continued
what

today's key issues

and

set in motion all the way

willing to surrender. At bottom the discrepancy
is

have

—

reflect

from the production
or

Republicans,

recognize the likely problems of tomorrow,
it is necessary to understand what is happening today.
/The economic key issues of to¬

which

means

and

Democrats

In order to

where¬

goods and services themselves—we,

too many
row

analysis

assets in decade and

and (4)

between

able

are

gross

end, and believes difference in government

of the

means

by 1960 and quadruple

nent violent

people

was

that, while boom is weakening, nothing points to its immi¬

some-i

people

willing to produce. Lacking the

with

lion

industry

(2) expectation industry will reach $20 bil¬

half; (3) record breaking 1956 capital expenditures
of $1.6 billion, and $7.3 billion planned for 1956-1959;

get quite to the root of the

The real trouble is that

matter.

have

not

(3) growth stock selection is rapidly becoming
complicated; and (4) influence of rising prices on

for encooraging outlook in: (1) $5
belies

years;

morrow

but

course,

Citing favorable change in investment appraisal of gas
industry since a decade ago, retiring Association Presi¬

cushioning economic decline,' is one of degree rather
than basic principle.

place of absent savings.

| There is truth in all this, of

level; (2) possible temporary over-capacity in next few

intervention

than to refuse to facilitate the creation of funds
to take the

President, American Gas Association

inventory policy and unlikelihood for continued inventory
accumulation^ support current boom. Author concludes

inventory build-up just to maintain industrial production

saving and not monetary policy was at the
bottom of the current state of affairs, and that
Reserve

By DEAN H. MITCHELL*

President, Northern Indiana Public Service Co.

tomorrow's key issue, Dr. Luedicke
seeks answer to how long postwar boom will last in view
of:
(1) it took current capital outlay acceleration and

the

By DR. H. E. LUEDICKE*

Editor, "Journal of Commerce"

Terming inflation

lack

Gas Industiy's Expansion
Now and in the Futnre

Mitchell

Sometimes

skills.

success

can

come

upon

swiftly that we tend to forget the difficult years that

Continued

page

by Mr. Mitchell before the American Gas Association
Convention, Atlantic City, Oct. 15, 1856.
•An address

before the Trust Division of the
Albany, N. Y., Oct. 18, 1956.

corporate
SEC and poten¬

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in
securities

DEALERS

afforded

are

complete picture of issues now registered with the

tial undertakings in our "Securities in

Registration" Section, starting on page 38.

State, Municipal

and

U. S. Government,

UNDERWRITERS

State and

Municipal

BROKERS

Securities

telephone;

and

STATE

DEALERS

MUNICIPAL

and

BONDS

RAILROAD
PUBLIC

CHEMICAL

CORN EXCHANGE

UTILITY

TODAY'S INVESTOR"
BOND DEPARTMENT

REQUEST

Burnham
NEW

YORK

and

Company

AND AMERICAN STOCK

15 BROAD STREET, NEW

YORK 5, N.Y.

OF NEW YORK

Members

New

York Stock

Dl 4-1400

TELETYPE NY I-22S2

120 BROADWAY, NEW

Teletype: NY 1-708

Bond Dept.

T. L.WATSON &CO.

Commission

New York Stock Exchange
■-

American

Stock

Canadian

Orders

On All

"3, V
'

Supercrele Ltd.

Columbia

COMMON

Analysis

3A % Debentures

Due June

Exchanges At Regular Rates

CANADIAN

Exchange

Executed

Guaranteeing Pacific Great
Eastern Railway

SECURITIES

Members

INSURANCE STOCKS

coast to coast

Province of British

CANADIAN

1832

BANK

YORK 5

$150,000

Dealers, Banks and Brokers

ESTABLISHED

Chase Manhattan

Exchange

EXCHANGES

•

Net. Active Markets Maintained

our

25 BROAD

STREET

'T*- NEW YORK

DIRECT

Goodbody & Co.

4, N. Y.

COMPANY

BRIDGEPORT

•

4PERTH AMBOY

Price

yield

(Room 707)

4.20%

IRA HAUPT & CO.

•

Doxmiox Securities
Grpoeatioti

t-MBERS NEW YORK STOCK EXCHANGE
15 BROADWAY
NEW

;

AND TORONTO

YORK

1 NORTH LA SALLE ST.

CHICAGO

request to

Trading Dept.

Payable in United States dollars

DEPARTMENT

WIRES TO MONTREAL

upon

Unlisted

1981

15,

Teletype NY 1-2270
It-,

£<JUthwt6t

THE

Harris, Upham & C-

34 offices from

FIRST

THE FIRST NATIONAL CITY BANK

CABLJCl COBURNHAM

BANK AND

ARE NOW AVAILABLE

SECURITIES

MEMBERS

ST., N.Y.

FOREIGN

BANK
DEPARTMENT

"POCKET GUIDE FOR

BOND

Agency

Bonds and Notes

LATEST

INDUSTRIAL

HAnover 2-3700

30 BROAD

Public Housing

COPIES OF OUR

Exchange Place, New

Teletype NY 1 -702-3

York 5, N. Y.

WHitehall 4-8161

Members New
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end other

111

Broadway, N. Y. 6

WOrth 4-6000
Boston

York Stock Exchange

Principal Exchanges

Teletype NY 1-270S

Telephone:

Enterprise laBO

The Commercial and Financial Chronicle....

(1742)

For Batiks, Btokerb,

Specialists for
30 years

The

Dealers only
over

Security I Like Best

A continuous forum in which, each week,

in the investment and

LEONHARDT

request

1 ume

million

Stock Exchange

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

stock dividend

to Principal Cities

—two

cents

capital

Specialists in

Robert C. Leonhardt

I ts

characteristic,
fact
Its

|fcpONNEIX&rOL

that it

see

it, is the

is widely diversified.

management has

versification

di¬

adopted

basic philosophy.

as a

best

explain this situation
by delving briefly into the com¬
pany's history.

Memueib

New York Stock Exchange
American Stock Exchange

YORK 8

can

Organized

under

the

laws

Delaware

on
Jan. 16, 1953, the
started out with a small
plant in Miami, Fla.
Here, it
manufactured
the
product with
which the corporate name origi¬

TEL. REctor 2-7815

company

Trading Markets

nated: the Weather-Guard, a mois¬

Products, Inc.

Gas

relay sys¬
tem designed for automatic closing
of windows, automobile fops and
similar protective coverings at the
first drop of rain or snow.

Virginia

Company

Southeastern

April, 1953, - the company
made a public offering ojf 299,000

Telephone Co*

shares of its common, stock at
initial price of $1 per share.

Scott, Horner &
Mason, Inc.

Early

•

1954,

Micro-Moisture

.took the first step toward the di¬
versification which marks it to¬

vast

Canada's

LD 33

Markets

F. H. McGraw

Food Fair Properties
Missouri

Research

Seaboard

Inc., located at 22 Jericho
Turnpike, Mineola, N. Y. Micro-

Drug

Moisture

plant and .office
The

Breene^CompaTU|
ESTABLISHED

St., N. Y.

Firm

now

leases the Koolvent
space, and

main¬

tains its headquarters there.

Prospectus On Request
i

37 Wall

Eastern Koolvent Aluminum Awn-

fing,

Lab.

Strategic Materials
*

In June of that year, the comadded another acquisition:

with

Koolvent
opened doors for still another ac¬
merger

•

quisition.

Leasing-space* in thef
Koolvent plant, at the time Micro-;
Moisture moved in, was a manu-;

1929

Tel. HAnover 2-4850

ifacturer of
,

a portable
air-cooling
and de-humidifying unit, Comfort
Zone
Corp.
It made
excellent

sense

that Micro-Moisture should

add this product to its gro6wing
;line, and accordingly, in October
of 1954Jt the company bought
82%

Trading Markets

Seaboard Drug

Shawano Development

Comfort

Zone's

outstanding-

stock.

Two months

Acconstica
United

Associates

Western

ture

Minerals

Philippine Oil Development.

Owens III Glass Pfd. Escrows

CAPPER & CO.

later, Micro-Mois¬
all

HEaderson 2-8571

/Teletype

four

modern

manufacturing

facilities in Montreal.

Igby 9-3424
i

B ought—S

Now

began

solidation.

•

Steiner, Rouse & Co

of SeligMilwaukee, Wis.

Members New York Stock Exchange'

;

Members American Stock

HAnover 2-0700

per

...

1955

6 Mos., 1956

_____

Mobile, Ala.

«•

a
period of conMicro-Moisture closed

down its Florida
plants and con¬

Direct wires to

$6,873,771 $6,381,876

$3,i78,206

$0.23

$0.41

$0.72

JAPANESE

Corporation put into
operation last year what is be¬
lieved to be the largest lithium
chemical plant in the world lo¬
cated in Bessemer City, N. C. The
non-recurrent start-up expense of
the Bessemer City plant amounted
to. $342,829,
or $0.45
per share.
This plant is now operating at

transference of

window

of their

aluminum

and

branch offices

our

^954,

STOCKS
after remaining

practically

stationary levels for three years

be stirring due
improved. Japanese economy*.

now

appear to

For

current

Call

information

writ

Yamaii

Securities Co., Ltd.

man¬

organiza¬
estate' develop¬ ufacturing operation from Minne¬
apolis to Bessemer City, it is ex¬
ment unit.
'
that they will improve
In addition, the company has pected
their
record-breaking first half
secured an exclusive U. S. dis¬
earnings in the .second half of
tributorship
for
Mellofoam,
a
1956.
•—
synthetic sponge-like material de¬
Lithium
is
an
element
like
veloped in West Germany, with
nickel, aluminum, iron, etc. It is
many possible uses from making
classified as an alkali metal, the
furniture to making aircraft.
same as sodium and potassium.
It
With all these acquisitions,
has the chemical property of being
Micro-Moisture's annual sales will
very active and therefore is never
certainly be close to or slightly
found in nature in the free state
above $5 million this year, with
but always combined chemically
operating profits somewhere near
with other elements.
Lithium is
$400,000. Not only does this great
found in a hard rock-like mate¬
variety of holdings provide for
rial called spodumerte which also
large income; it also guarantees
contains
silicon, aluminum and
tremendous7 underlying stability.
oxygen.
Engaged as it is in many diverse
Tne
company's * ore
reserves
businesses, Micro-Moisture is not
which were proved by drilling ana
likely to be deeply affected by ups
mining operations are estimated
and downs in each industry. _r.
at eignt million tons, which
are
Steered by an aggressive, alert
distributed
as
follows:
53%
in
management team under President North Carolina,- 39.%- in Canada
Louis
Levin, this eager yOupg and 8% in South Dakota. This es¬
company is marked in my book timate.
represents exploration of
ay one
of those "most likely to
less than one-half of * the com¬
an

Exchange

NY 1-1557

New Orleans, La.- Birmingham, Ala.

the last two and

Lithium

paper

old—Quoted

of America

Established 1897

real

Home Office Tokyo
70 Branches
Brokers & Investment Bankers

111 Broadway,N.Y.6 GOrtlandt 7-5680

Burns Bros. & Denton, Inc.
37 Wall

Street, New York 5, N. Y.

succeed."
ciates

value

Mr. Levin and his asso¬

have
of

obviously

company,

diversification

for

pany's

the

seen

there

their

contract

Investment Securities
Canadian and Domestic

TRAILER FERRY, INC.

COMMON STOCK

long-term.
'
*A
look
at.; the balance, sheet
shows long-term notes of $4,282,1 '181; convertible debentures due

ing.

GLENN C. PETERSEN

/.Dealers *

stock

dividend

HARRY SIMMONS CO.
40

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

WHitehall 4-6627
1

was

in December of 1955 and a
stock dividend was paid July [
1,1956.
A relatively small amount j
Corpcration of America* Inc.
Lithium Corporation of Ahierica1 qf capital stock is, now outstand¬
is One of the two leaders in the ing, considering the. size of the j
field of lithium mining and.chem- Company, which leads me to be-'
lieve that as the stock appreciates
j
i c a 1 process¬
in value it could easily be split,
ing:
j. Sixteen different lithium com¬
The field of
pounds are produced at the Besse¬
lithium is in
mer
City plant, one of which is j
its
early, inlithium hydride which is used in
f ancy, An d
the manufacturing of H bombs and
r
only its sur¬
rocket fuels.
The AEC recently
face has been
released a report stating that fus- ;
scratched. The
ing together of atoms Of a light
use
of lithi¬
material such as hydrogen under J
um-has been
millions of degrees cf Iheat re- »
w i denin g
releases energy that could be used
by. leaps and
directly to produce electricity. A:
bounds, and* fusion
reactor of • this, tvpe prom¬
today it is'
ises to be extremely safe^because
used ih
paid

SeligmannMilwaukee,4Wis;

Since 1932

Lithium

atomic

Glenn

Brokers

through

these 763,872 shar es are outstand*

For Banks,

1984 of $1,200,000
and capital and surplus at $2,019,878. Tnere is authorized 1,000,000
shares cf cofrimon stock, and of

the-Counter Market.

TIHT

In
addition,
with Quebec

the

1960

Trading Interest In

•

Dealers

Lithium fpr 1,500,000 tons of ore
to future guarantee ore supply for

and

ceeded

properties.
is

Underwriters-—Distributors

of the small amount of fuel in the

Petersen

■

—

energy, rocket,
Awnings, Ltd., Koolvent Awnings
machine and there would be no
f"els, multi¬ radio-active fission
(Western), Ltd., Aluma Roll
"products to
purpose greases, organic chemis¬
(Canada), Ltd., and Atlantic Steel
try, pharmaceuticals, heat treat¬ escape in case of an accident such
Ltd. All but Koolvent
as
there
is
in
a
conventional
(Western) ing, air
conditioning, electric stor-' reactor.
were located in
Montreal,. Quebec. age
batteries, porcelain" enamels,
Thus, the company gained a Cana¬
The Armed Forces are begin¬
ceramics, metallurgy and brazing
dian outlet for its
well

Koolvent

products, "as

y.Gty, N. J.
119

stock

corporations:

Exchange P

acquired

Canadian

Inc.

Earnings

•Jpany
-

19 Hector St., New York S. N. Y.

Sales

? Brush Beryllium

Alabama &

itself diversified, having
a fully-owned basic scrap steel in¬
near
optimum capacity. Due to
dustry, a well-established electric
appliance hhbnuf acturirig business, lower .production- costs and the

Trading

•

Co.,

(Page 2)

July

they have- pro¬
promptly to translate their
day1; To augment its manufacture" philosophy into profits. 'There Is
of self-closing windbws,
it ac¬ every* reason to believe that they
quired the business and assets of will continue along the same path
the AlDWeather Window Corp., in the future.
! which had an 18,000-square-foot
Micro-Moisture
Controls, com¬
! plant in Holly wood, Fla.
mon .stock is traded in the Over>

Lynchburg, Va.
Tele. LY 62

electric

ture-sensitive

Alabama-Tennessee Natural

end

tion,

in my opinion,, repre¬
sent both a top-notch capital gain
speculation and a sound: invest¬
ment for long-term income.
Micro-Moisture's outstanding

Since 1917

£ r i

Leonhardt, President,

and earnings for
one-half years../

pany was

securities,

RIGHTS & SCRIP

+■*}*•

•

C.v Petersen,

mann

with \ Montreal's Converters
Acceptance Corp. This large com¬

plus and 3%

*-» /

Controls,

Corporation

—Glenn

time

sur-

in stock.

Bank of

Lithium

for .tighter
the com¬

control. In October, 1955,

of this year,
Micro-Moisture completed still
another
Canadian
merger,
this

share cash out
of
BIlilllHIIIiillllllililllllllli!

Air Control

provided

and

costs,

industry.

year.

BOSTON

Teletype NY 1-40

*•

McGrath Securities Corp., New
York City. (Page 2)

solidated into the New York plant.
This allowed a saving on overhead

tion

ap¬

Furthermore,
it has already
paid its first

120 Broadway, New York 5

Rooert C.

poration epgaged ih the distribu¬

proaching $5

Associate Member

* *

Louisiana Securities

pany

annual sales
vo

•

particular security*

intended

not

Established 1920

ISO BROADWAY, NEW

are

plus excellent potential for the fuFollowing this
came } another
ture. Though
period of diversification. Late in
it was founded
1955, Micro-Moisture exchanged
only three
1,200,000 shares of its; common
stock
for the entire common stock
years ago, it
of
Plotnick Brothers, Ltd., a cor¬
already, has an

Corporation

Wires

for favoring

sold its New York aluminum
Micro-Moisture Controls, Inc., is awning manufacturing facilities,
a sturdy young company with an concentrating this product line in
Jj -f. -1
amazing record of growth so far, the Montreal plant.

New York Hanseatic

Private

as an

Micro-Moisture Controls, Inc.

United States

WOrth 4-2300

be regarded,

•

Week*s

Their Selections

be, nor
offer to sell the securities discussed.)

President, McGrath "Securities Corp.
New York City

Companies of the

ROBERT

Comparison of Leading Banks

American

they

are

Our 98th Consecutive Quarterly

Available

%'» »

Micro-Moisture

Insurance Stocks

reasons

(The articles contained in this forum

and

and Trust

Forum Participants and

of experts

group

This

advisory field from all sections of the country

participate and give their

Bank

different

Thursday, October 25, 1956

processes.

ning tomove

The growth of Lithium
Corpo¬
ration of America has been

development of rocket fuels. These

rapidly in the

just fuels are based on chemical com-!
outstanding as the; growth of
and
lithium.
industry. This can readilj* bd pounds of boron
seen by a quick look, at
the sales
Continued on page 10
as

Specialists in j

VIRGINIA—WEST VIRGINIA
[

NORTH and SOUTH

CAROLINA
MUNICIPAL BONDS

■F.W.-

CRAIGIE&CO.
<,

Bell

RICHMOND, VIRGINIA v' •
System Teletype: RH 83 A7 84
Telephone 3-9137

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks
POLDER ON REQUEST

National Quotation Bureau

the

.46FrontStreet

-v*

HewYork4,ILY.

Volume 184

Number 5580

...

The Commercial and Financial Chronicle

(174$)

Changing Times for Banking
-

IN DE X

The question of

adequate banking growth in order to help
leads noted Chase Manhattan

head to examine:
.

proposal;

merger

Baker

banking system, and
control

tenets

banking rests

somewhat puzzled

was

to what might be most apppro-

for

priate

that

knowledgeable

speak,

hd'

which

are

great

impor¬
to

of
J.

bank

which

and

vital

Baker

Stewart

Sale-and-Lease-Back

are

posing
for bank

now

problems

course

from
who

one

of these

can

attract

directions.

other

from

new
su-

the

point
immersed

of
in

the

country—or

what

us.

But this too is
experience-which
it
shares
with many others.

After

But

not

that acts to

man-

jess

finance companies

com-

New

nancial

written

and

spoken

about

banks

supervisors dj to,put
aright before the public.

and

The truth

the

matter is that

institutions—by I the

this

time

recent

tjon

yet

banks,

Banks

competition is yielding great

may

not

all

*An address
National

pervisors,

example,

State

Francisco;

1956.

Bank

Calif.,

Oct.

19,

the main

J.F. Reilly&Co., Inc.
42

are

Bank

See

;

Wires

the Gas Industry

•

!•

•

——.Cover

Stocks.——

Crisis"

Oil

Mutual

Funds

—

_—

———

-->•

—

Singer, Bean

NSTA. Funds

News About Banks and Bankers—

Observations—A.

Governments

Reporter

Our

Reporter's Report.——.

Railroad Securities

—

Direct Wires

•

We Believe the

Securities Now in

Prospective
-

Security

Registration.——

—

Security Offerings—
Corner——/-—

Salesman's

The Market... and

You—By Wallace Streete

The Security I Like

Best—•—

Turn Has Come

for

—

DOUGLAS & LOMASON
50

-2

and Industry

—

—-

*Column not available this

Weekly

and

Drapers'

London,

Gardens,

Eng¬

ary

B. DANA

WILLIAM

COMPANY, Publishers

25,

1942i

matter Febru¬

second-class

the

post

Quick $7

Share.

Strong Gurrent Asset Position.

Company

Reentered

Reg. U. S. Patent Office

Net

No Preferred.

Book Value Over $12.

CHRONICLE

FINANCIAL

W/&-MK

week.
No Bonds.

COMMERCIAL

Common Around $7

1350-55 Price Range

Parts

land, c/o Edwards & Smith.

PDCECDDCn CTflflfO
' II LI E IIII L U OlUUIVO

Year Atito

Manufacturer

Can
o-»

on page

State of Trade

Philadelphia * Chicago * Los Angelas

—

*—

—

40 Exchange PI., ,N.Y.

Teletype NY 1-1825 & 1-4844

—

Securities—.—

Utility

Public

Mackie,inc.

HA 2-0270

May—

Wilfred

Our

;

——

Indications of Current Business Activity.

Airlines of

Delaware

of the News—Carlisle Bargeron——

From Washington Ahead

Resort

„

Britain

Einzig: "Impelling Atomic Power Factors as
Faces

—

Recommendations—_,

Investment

Washington and You——

Continued

Uranium

Coming Events in the Investment Field—
Dealer-Broker

businesses.
■

Tidelands Oil

—

reasons

HE 4-3634

•

Salt Lake City & Penver

Man's Bookshelf—.

Published Twice

have specialized in

Pacific

th*e

why our
subject to super-

Teletype NY 1-4643

Exchange Place

Jersey City
4

——

(Editorial)—

Insurance

and

Business

The

For many years we

Broadway, New York 4

DIgby 4-4970

—__a—___

The

Cover

vision and regulation to an extent
that is unknown vjby most other

—_

Lanolin Plus

today,

Competition between banks

Su-

BROADCASTING

and the insur-

interest,

institutions

by Mr. Baker before The

Association

San

for

know,

DUMONT

Regular Features

the- savings
the sales

highly tinge<J with

are

public

benefits to the general public. You

INDUSTRIES

States Today

—Jerome K. Kuykendall—

associations,

the financial world

CHESAPEAKE

Now and in the Future

Federal Power Commissioner Looks at

they must carry on their rivalry,

one

—

Financing—Robert E. Toolan

Hedrick

companies, among others.'As
matter of fact, a close look at'

And

years.

BASIC ATOMICS
12

—i

Mutuality of Problems in the Natural Gas Industry

mu-

and competition,
competition in .banking- is more" if allowed to run rampant, could
alive, more vigorous than at any
more harm than good.
This is
other

—Dean H. Mitchell—

assessing this competition,
today, and particularly about its we must not
forget, that, banks,
relation to bank mergers I believe
unlike
most
other
businesses,
one of the problems faced, by both
have
strict
limits
within
which
the facts

RACING
11

Articles About the Gas Industry

City! I am sure that Mr. a
Mooney (New York State Banking the pattern of postwar growth
Superintendent) will bear me out suggests that many of these instiin this.
And so far as I can see, tutions
are
pressing
ahead far
healthy competition is a dominant more vigorously than commercial
element
in
banking across the banks.
country. Actually, there has been
Certainly all of this testifies to
a
great deal of misinformation, the
strength and vigor of competicompetition in American banking

MAGNOLIA PARK

Pay—Roger W. Babson

Gas Industry's Expansion

ance

York

•

Salt Lake City Stock Exch.
Spokane Stock Exchange

importance

be this: There is

Members

agements on their toes today/Of

savings

dearth of

.u,

RACING

Outlook—Martin R. Gainsbrug'h

Near-Term Business

keep bank

loan

banks

Inflation in the United

4-6551

AUDUBON PARK

Inflation Must Be Watched

pres-

and

k°th

Banker Looks

The

only

tual

the

us!

STREET, NEW YORK

.__

Role

A Look at Short-Term

competition between banks

themselves

sells his
to

McLEAN INDUSTRIES

77-U. Frederick Hagemann, Jr._^

Non-Banking Competition

all the comment that
has appeared on that subject, perhaps my first observation should
between

America's

and without their own regions,

sure

Inflation and Promises to

is the drive
of and intiative shown by other fi-

eighteen, months

Raynor

—Ivar Rooth

WALL

in financing the growth

ticipate

if he

Telephone: WHitehall

___

Seething, Changing World—Herman W. Steinkraus

where strong banking institutions
of substantial size can be found,

merger, and

petition

Joan

World Economy Stronger, But

least

merger.

common

York for financing. Today he has
his choice of any number of cities

correspondent
Our bank as it now

instinctively turned to New

most

our

stands also is the product of a recent

Not

Glickman

Activity: Security Analysts' Societies

Non-Postponable

large manufacturer in the South or West al¬

of large corporations, both within

banks tell

ROCK HUNTER?
obsoletes

—

Rates—Robert Van- Cleve—_

ity of our own problems seem to
be typical of those faced by banks
Is

—Carol

communities.

Today banks in these centers par-

that

for Interest

A True Growth

latter

the day-to-day problems of a New
York bank. Yet the great major-

across

Technique to Finance

Expansion—Louis

customers in

various v local

sure

I tend to look at these

developments
view

Some

area.

Industry

Outlook

New York

day is gone when

pervisors.
Of

The Outlook's Promise and Problems—Eleanor S. Daniel—

York, but throughout the country.
It is in this national activity
that New York City banks also
find themselves under heavy pres¬

management.
and

_„

Steel Sales Outlook for 1957—H. W, Clark—_

Moreover, these five banks are in
competition with the other nine
to serve business not only in New

some

banking

tance

the

developments

City we have
14 banks that belong to the Clearing House Association. In addition,
there are 39 other smaller banks

all

of the current

Of the Clearing House
five banks have city-wide
branch systems, and each is doing

discuss

Cobleigh

♦group,

with"

you;

Future—Ira

AHD COMPAHY

Obsolete Securities Dept.
;

ability.

unique oppor¬
tunity t o s i t
down

the

—A. Wilfred May_____—

banks, incidentally, have a high
degree of skill in certain special
lines that adds to their competitive

was

faced with

that in

in-

such

occurred

say

distinguished and
group. Then
it

/-spoil

increased loans made to small business in past year.

I at first

Metals

WILL SUCCESS

.Cover
'

-Speculative and Investment Opportunities in South America

establishing a study survey group; (2) returning to
elastic currency based upon rediscounting; (3) lessening strain
on N. Y. bank's
ability to function on major domestic and
international market center; and (4) disseminating f&cts of
-

•

Assorted

tion of

and Tomorrow

—_

*■

m^ch decentralization of banking

Luedicke

Page

Changing Times for Banking—J. Stewart Baker——

possible. Suggests: (1) Senate Banking Committee
adopt former N. Y. Federal Reserve President Sprout's sugges-

■

dual

upon

—Heinz

savings and less instalment debt.

basic

avers

Economic Key Issues of Today

discriminatory reserve practices; harmful
increasing competition confronting hanks;

.and current need for
Mr.

Articles and News

sound economic progress

assure

LicHTcnsTcm

B. S.

By J. STEWART BAKER*

President, The Chase Manhattan Bank

offifce

New

York, N. Y., under the Act of March 8, 1879.

Operating in black despite de¬
pressed auto industry. Product
diversification initiated.

Com¬

Park Place, New York 7, N.

REctor

Spencer Trask & Co.
Members

BROAD

New York Stock

Exchange

HERBERT D.
WILLIAM
.

•

Boston
•

Subscriptions

SEIBERT, Editor & Publisher
DANA

SEIBERT,

President

TELETYPE N. Y.

•

Chicago

Schenectady

•

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Possessions,

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Thursday,

Oct.

25,

1956

Thursday (general news and ad¬
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Members

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plete

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pletely tooled for 1957 models,
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ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

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eign subscriptions and advertisements must
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.

General Investing Corp.
Members

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for for¬

80 Wall St., New

York 5 • B0 9-1600

1955

»#

<*'•"

and

growth and

en¬

Author of

for

most

anyone

want

little

indicated

who

Long-term

heard

have often

years

as
aa

segments: producers
pipelines, and

generalized

distributors.

time

The

long
h

;

scription

feet.

very

cents

peak

production

Demands

cubic

feet,.

ue
be

took pride in

demands

foresee

w£

trillion

ages of man by
worked with

stone,

developed

ments..

We've

these
life

long-term

the

cents

ago

Value

cents per thousand,
location
Quality

-ivhiph
which

the.cost of

We have comea long way

since
the first producing well was dug
135

ago

years

western

cleonics

Cobleigh

27Vi

spectaculaVrrjjarket

per-

Another

1 iaJ whose

en-

common has risen from 214

1954 t0

high of 48 this

year'

Present quote, 30 in the Over-the-

rapid

Ex-

terprises is Strategic Materials Co.

noted

y® P.

sells

Stock

aa~

counfer

of mag-

Market.

This

company

-•

since
1945* °-Wns Stratmat Ltd-» with 1J/4 milwhnlp^nfph
nf
H01? acres
Canadian mining
whole batch of
.laimc

Esoeciallv

also

we've also

cppp

seen

metals

mnc+iv

come

the scientific

they were desperately needed to prov de the quahscene, because

ties

the American

Ka-

offered

former among mineral-slanted

growing

vance

nesium
wp'w

strato-missiles.

common, publicly
last .year at
$11.50, now

and

J1!.
ira

and

wecki

indis-

we've

new

■

stin

the

widely; change.

pensable

other

and

getting the gas to market.

some

,to

use

nffppt fhp pnsf of
affect

the

from

shining rarity

depending

^non

pnnHitions
conditions

from

nurrt,
move

separation technique,
tantalum is useful

columbium, because it
disintegrate at the hightemperatures, is potentially a
very
valuable
alloy
for
neu-

past 30 years,

con¬

years

col-

and

est

seen-alumi-

con¬

tantalum

in electric resistors and capacitors;

thousand

prices,- some still in effect
contribute to a relatively
field price * which
does not in any way indicate go¬
ing prices or values in the field.
or

the

does not

era

resulting

while

old

average

The

these

the

uses

umbium. Here again Kawecki has

copper,

past

team

ele-

for

and

strategic

mission in fission.

or a

metal

the materials he
—

tract

Ten

for fuel energy in the nation are
growing
so
rapidly
as
to
be
astounding.
we

flight and height of missiles,

per

Many

were

fascinating metals

with vital

basic

tional
suPPlies
become
available,
thpv
havp
valnp
nf from
10 \(

-While in,1955

certain

The history books partition the

were

southwest^Today^when ^addi-

this

nniiin
should'

low"

■

loads

some new,

low .prices,

contracts
at

from electricity for domestic
loads, from oil for househeating,

industrial

in the

well

and xxvxx.
from coal and
anvx
wxx
oil
xm
for
wux
our
off-

peak

old and

today,

■

auu

overdue

e n>

from

tracts

prices pipelines have to pay for what was
formerly a distress product.

industry described and
divided
uiviucu
into three
iiitu
mite

our

classified

Ciassineu

into

field. .These

keeping field price contract commitment intact, and distributors

recent

entered

cubic

Fulbright Bill veto; ponders supply difficulties arising from
new gas-using industries being enticed into
producing, areas,;
and increased sale of gas locally; and discusses problem of

thousand.

coverage

some

bronze, iron, etc. Well, we've gone

problems to fulfill responsibility to public and nation.
Mr.
Hedrick queries whether consumers won a victory with Harris-

over

cents

Kaleidoscopic

Rising Field Prices

try, and appeals for unity and cooperation in meeting common

opposition

Security and Financial Independence"

Gain

minerals,

Al¬

market.

couraging prospects for natural

gas, which "has come into its
pipeliner, and distributor inter¬

"How to

to consump¬

Gas had

centers.

own."

producer,

By IRA U. COBLEIGH

early 1930's there was
handful of comparatively
diameter pipelines leading

value

dependence upon each other has increased to the point where
it inevitably compels realization that they comprise one indus¬

;

willingness to build a pipeline
could buy all the gas needed from

Contends

Thursday, October 25, 195(>\

Assorted Metals of the Future

the

tion

Independent National Gas Association of America

delivered

was

out of the southwest

Texas Illinois Natural Gas Pipeline Company

Natural Gas Association head depicts current

was

...

lines.

small

President, Natural Gas Pipeline Co. of America

81%

only

By J. J. HEDRICK*

was

used in
used or
recycled
to pipe¬

was

plants, 9%
air, 2%

blown

In Natural Gas Industry

only about 8%

carbon

Mutuality of Problems

«-■

The Commercial and Financial Chronicle

'(1744)

lightness

and

strategic

strength

natpntpri

MetaPurgfca?

Ud'y

wl'fch ha*

rnpthnHc

fnr

fGr~ anoth.er 20% this year, and New York State. The industry has necessary for high velocity manganese ferrous baux te
three
func
learned investigators are est!- groWn. The development of long- rockets, missiles, and supersonic ^rome titani'um and ^rrnrv
tional
segmatin§ that lr? 1975 demands foi- distance transmission lines made planes; and to withstand or utilize AnotheJ. suhsidiarv (50<7 owned)
ments
united
na^raJ gas ^
^.^J!1011 it possible for the producers to the tremendous heats generated f £ Micf Corn T td
^
i^to one in- cublc feet and tll?t we.wl11 ?xue have an outlet for their vast sup- by fission, fusion and strato- \s ^par-Mica ^°rPwito
JhiSrv Th ?t discovered a goodly portion of the plies of what used to be surpius spheric flight. ,,
Sm fP
feldspar and
rn" r
500 or 600 trillion
cubic feet and even undesirable gas
The
"
Stratmat also has a substantial
Sh0uld
/Vn° anticipated recoverable reserves building of the Sine alto made
°?e oi <hese magmal elements interest m a silica company with
way .interfere
now unUnown.
tot <Urtritatto3
If th°rlum; and ancompany tl.'at over four million tons of reserves,
with
the
expossiDie ior aisuiouuon com
bas done very well ln producing
hanged

•

J.
.

Hedrick

ercise

petition in the proper spheres.
In terms of corporate orgamzation

and

three

these

functions

terms

fringing

vig-

com-

orous

general segments

are

separate
and
distinct,
but
together they make up an essentially single enterprise devoted

closer

mediate

lion

nature's

From

consumer.

to the burner

single industry and not
three separate ones. We are all in
the business of supplying the contip

sumer's needs
upon

and

dependent

are

reliable natural

gas

sup-

ply.
Gas

Has

Its

to be served and

areas

billion construction propipeline and distribution
to serve these expanded
in the next three years.

OCCUDied with

Come

^'hfsexgferted
Sometime
dented

to
j

own

fiarins

the

quarter century, and

the

last

years,

to say

that natural

has

gas

revo-

lutionized the habits of the American

people. It

supplies 26%

now

of the nations energy,

^nerg-y

wmch
vital

gas

the

growth

46%

re<4ul^mentsit -for
is

competitive,

natural

American

deiense

and

ine

economy,

in voiume ot

used ana in

natural

number oi

gas

customers

that

some

of emphasis within
natural

gas

1940

was

t■

wnat

lies

aneaa.

leaerai

regulation of the entire industry?
Possibly. Competition? Definitely,
.

Atlantic

instance

ane

the

airplane's

warned

authorities

1he

danger

involved in flying over the Texas
panbandie

field.

gas

wasteful* flaring

Most of this
not

was

wanton

0£

economic fact

1943 it

than

na^urai

was

that

estimated that

100 trillion

cubic feet

produced- in-

25%
of
the great

panhandle field

was

used

increase

that

contract,

voluntarily
price under an old
thereby

and

increased

its costs, assumes substantial responsibility
to the regulatory
i""
'
itc
ctnoknnirlprQ
onH
tn
only 25% delivered to pipelines, agencies, its stockholders and to.

biack plants,
50% used or
blown to air, wasted forever^^ and
nr

eliminated, and

Hot

(through subsidiaries)

appi^xi-

rate

absorb

A11

part

costs.

all

best,

proceding before the Fed-

eral

Power

and

costly

Those

Ln/\r»L

increased

seldom
to

r/\

have

Commission

the

and

completely
old

contracts

Company, Royal Dutch Shell and Standard

by subsidiaries

vaiue
wise

long

outcome

job

however

the

Chemical

manv

market

*•

•

*'L/®rP®^J111011 of America
13 ana her exeitmg company.It «
ac'ualIy a .multi-fold holding
.

sC°™^nynu^r

re"

|f®^rv'endnetfin,Ure'nlum
engineering, uranium
"jming and processing rare met-

the

aJs
?nd 1^y.nx'°T-a's'
ran?lc colors and pigments*-

Lindsay.

The

n?al?+r materials bringing profitability to Vitro include uranium,
tnprium, titanium, zirconium,
meta1' a"d rar^ fartbs- \n

Management is quite impres?}ve:
Another metal,

metallurgy
is
Company.

only six years ago by
Henry C. ^Kawecki
(President)
and.
Joseph
C.
Abeles
(Vice,

and

in 1955

g37

should

the

development

dustrial

five

use

absolutely

elements

unique.

bathe in it without

You

wet;
hits 675

Originally used in ther-

mometers

for
r:

you

clinic, and

climate,

find

now

silent

zirco-

•

product

(derived

the

refining
0f copper) is presently the largest
earner.
It is principally used in

electric

rectifiers.

zirconium

aiways

brother

are

found

Hafnium

together,

ture

resistant

vapor
power

panding

and

ones.

metals,
the

these

and

metals;
replacing steam
generation.

this'

uses

The

are

and

But

not

days

lies

electric

thes*»

ex-

the dynamic

big "zing" in

shimmering

"mer-

patterns

tempera"

...

nium. Of these, selenium

can

getting

pid it won't boil till it
megrees.

j::

"liquid

silver." This amazing liquid metal
is

in-

and

mercury was dubbed

era,

the

cross

$300,000 net profit market this
year. Kawecki is a metallurgical
specialist and has addressed itself

ancient

very

one

some
the original $30,-

and

that has taken on new import
in this age of reactors and rockets
is mercury. Used by the Greeks
associates 400 years before the. Christian

Founded

satisfactory,
drawing

divi-

indicate

seem

v..

money

company

attracted

followers

WOuld

any

paid

"romance"

off-beat

kawecki

wnicn

must,

suppliers

& CO.

must
must

we
we

Broadway, New York 6, N. Y.

thp
the
-

wouia

not

otner-

have had. On the other hand,

must

WP
we

Market

Teletype NY 1-2233

make
maxe

has

•

the

mercurv

fact

metal

that

has

top

°et Ehave gi?enWto1Csoinhwest°sas
,hasKbeen ,t0.separate them secret and strategic uses in guided
amarket
and
consequently^ I cheaply. Kawecki has come upon missiles, and as a coolerant and
»MX suaha
Proeess;
and the hafnium, heat exchanger in atomic reactors,
which
far rarer, commands a In such

of Socony-

Jersey.

L. D. SHERMAN

rjse

r. x

,heaSi„e
Particular — selenium, tantalum, for
cury"
electric switches, in
pipeline columbium, hafnium and
cold casting of high

reai
possiointy tnat tne
tirill
the

has

Another company doing a slick

rrf

those wasteful pne-

staunch

qqq capitaij Kawecki netted $182,-

which

and

minerals,'
Strategic

almost every phase of the development and application of neu-*
cleonic energy, Vitro is in their
90 cents in the same 1955 period, pitching.
Seven hundred thirty
There are 361,614 common shares thousand, five hundred and fiftytraded on Midwest Stock Ex- three shares are outstanding tradchange.
ing over-the-counter at around

who subscribed

^omract rrice

pipeline
increases the
.

as a vital

known

customer

President)

bon
'

Mobil

would

^Penne tannot uo Aoove

1945

car-

this

available supplies.

was

and

that

acres.

Telephone WHitefcaN 4-5520

and

elements

Atomic Energy Commission is

contracts.

waiting to be
marketed, largely

gas

being

essential

were

to the financing of the line initially. Investments and financial
commitments were made in the
pipeline on the strength of those

felt

bard

occasioned

Properties

commit-

iate

by ^be

was

NORTH EUROPEAN OIL CORP.

Oil

long-term

are

were

Oil of New

earth

processes,

aian
didn't
t

coverage

and

year

dend.

element in the fusion bomb, and
although its applications are top

major

only

iast

many,industrial applications
in
flints
for
cigarette
lighters,
motion t picture projectors, polishes for glass and stone, aluminum
alloys and stainless steel.

Not

operated

cerium

but

earths.. Rare

rare

corporate

assortment
„

Materials
iviaieriais

uuum

have

secret,

the sales price of gas did not pay
the expense of gathering it. As

but

tices have been

Owns royalty rights

compounds

pipelines have not been
adequately explained or understood.

will

mately 1,000,000

real problems of the

very

Often these financial
obligations are such that the pipeline is not free to raise these old
prices even though it might be

destruction,

&S™cSS£ Fortunately,

City, Oct. 15, 1956."

Some

South

Lindsay produces not only thori-

f£and some basic points in rela- Thorium is regarded
tlQn to those old contracts.

™x„ 1

metals

Saskatchewan,

tributors and they

^be Psefui energy of which it was

TiTvw

all gas
prolific

ture.

in 1945 to 57 this week. Earnings
per share for first six months of
this year were $1.76 — up from

provided
wells far
providing

oil

approximately

fu-

and

necessary before contracts
could be made for the sale to dis-

with

displays

in the southwest. As late

accomthe

stances have been sympathetic to

found
xvun^

.iuun«iHC,

Africa

capable whed properly harnessed

produced

lines to the producers for gas
under the old low price contracts,
While the pipelines in most in-

monazite,

a«nu,

nf
special Irinrl
kind of

Company. From
sand,

There continues to persist some
fairly severe criticism with respect to prices paid by some pipe-

TTrnm

fAmnanv

Stockholders here have done fabulously well, as the shares (with
adjustment for a 5-for-l split in
1954) have risen from a low of $1

try's past is replete with
what

this stuff is Lindsay
Chemicai broad
cnppiftl

ments of gas for pipelines necessary to obtain a certificate of convenience and necessity from the
Federal Power Commission, they

has been phenomenal. The indus-

olishment—but

oldeolae*

fof selves have often £ailed to under"

unprece-

industry. As late

sensational

natural gas has come into its own.
I believe it is not an exaggeration

the
the,

manufacturing operations.

ight of the signifi_

J^aceofsh°fts
ouf

contfnue

meet

demands

gas

Into

Own

^adiei^rchfan?e
from
and
tiner
tuel
horn

the suppliers, the suppliers them-

from markets instead of

In the last

especially

the

mil-

„

installa-

widespread practice. Much of the

Natural

.—

househeating

new

lm-

the 3.8

are

the $7.3
gram for
facilities
markets

finding, transporting, and delivering nktural gas to the ultimate

concern

Despite

little

our
sights a
tomorrow
and of

new

tions,

storehouse directly

hpst
best

rpmpmhpr
rememoer

that
tnat

are

the

ones

look
100K

for
ior

futurp
tuture

our

best

infprpst
interest

Continued

which

s-mnlips
supplies.

interest
of
of

fhpso
tnese

and

the consumer
ponsnmer
the
on

page

hieh

uses

nrice
•

because
+

atomic

oecause

reactors,

absorb

and control their flow

can

can,

tho

mo+oi

in the metal

neutrons

Zirconium

continuouslv

^eve
,

contrary,

for

nuclear

neutrons

neujrons

reaction.

second

Castor

useful
in

chain

cqain

the

Pollux

hplipv^H

rentappd

reasons

General

such

Servirps

the

still

these

Arfminictra

Aannmstra-

its strategic stock pile

metal

that

oeiieved that

tion of the U. S. has had
Gn

and

Jll repiaceo .wo

control tneir now. Zxircomum, doubt for

the

expended and must

mercury

list; but

very

short

Volume 184

Number 5580

The

...

Commercial and Financial Chronicle

(1745)

supply.^ The U. S. Government is
quite * obvioiisly' anxious to "in¬
its
inventory and assure"
production, not dependent
on Europe.
Historically, the major
world supply of
mercury has come

Speculative and Investment

crease

future

Steel

The

State of Trade

from the Almaden mine in
Spain,
and from lesser producers in

Retail

Food

Jugoslavia.

On North

America the

flagged because
flask

(76

vailed

the

industry

price

pounds)

recently

which

attractive; and many
producing mines were •
closed down. Open market
prices,'
however, ran up to $325 a flask in
1954; the price today is $255. This
ment floor

brought
tion.

price of $225

the

United

Over-all

Sonoma

The

from

Mine

August.

this

would-be

speculator

has

available

property

5,000,000 of
Mining
Ltd.

DeCoursey,

Toronto

now

and

purchase

this

common

then

and

12/31/57.

1,000
until

the

were

made

the

12/31/56

This
a

Steel
shoe

tween

this

basis

located

are

the

168,700

year

their

auto

benefits

dipped

auto

the

states,

states

waiting

tight"
Iron

will

market

men

havoc

auto

the

and

the

with

ant

time

that

already-tight

when

makers

the

order
•

■

•

the

before

case

the

tidal

wave.

problems
As

sellers'

this output will be crammed

where

What

considered spoken

adds

/
"
sharp upturn

for, from

kept

all

light.

pay,

new

car

sales,

7.'

ship

builders

preferred

tural order /books would .aggravate .a

r/tion for these two

spot

plate

for

mercury

profit in producing it

arid

good

are

for

entry

few assorted

the

speculative

intrepid

securities.

whisper of endorsement

recommendation

any

companies has been given
tended.
any

You're

fascinate

analytically.
and
to

good

you,

Both

luck,

your

these
or

own.

in¬

look into them
a

seem

good

look,

prerequisite

speculative success in ventures
this

the

sort!

similar

level

all

sizes

risen

The

increase

retail

fell

trade

17%
All

except

from

and

September

construction.

below the

1955

and

cent

there

concentrated

Stock

Speculation in
Inflation-Land

•.In

($333)
($66,000)7'But

although growing
is still smalt .Rean

entire

sharp contrast to Venezuela's
stability, and consistent

poised

eight

past

with our above-stated correlation
national inflation with .interest
in" equity speculation, is Chiles
very active securities boom
^
7 Oh the Santiago Stock Exchange
v(with" a sec♦ndary E x c h an g e
existing, m Valparaiso), volume

weekV '•regularly is. now running at a two

stocks, and 2 million B's ($600,000)

The
80

bonds.

The
varies

yield

widely,

to 9% on many
on

some

stocks

common

ranging from 8%
issues, down to 3%

capital

gain

pointed

stocks,

The

prevalent competing profit

with the absence of

o g e

t h

capital

business

e r

foreigners,/ now
Germans

conducted

members,

and

divided

Britishers

among
without

American representation..,on

the Exchanges

move

if1 big swings without any restrictions

mar-

INTERPROVINCIAL

broker

active

which no more than lQmay be

Prices

opportunity situation, t

PIPE

imposed. Manifesting the
Continued on page 36

LINE

COMPANY

We have

prepared a report which reviews the
problem <of surplus crude oil re¬
serves
in Western Canada and its possible
efTeet 011 the future of this Company.
The
desirability of increasing domestic produc¬
tion, thereby reducing adverse trade balances
and aiding capital formation within Canada,
are discussed.
A eopy of this report is avail¬
able

•

request.

WISENER

dip in failures in September,

Mountaip States, where casualties remained at the
August level. Seven of the nine regions reported more casualties
on

page

and

COMPANY

limited

•

MACKELLAR, WISENER

total

the

Continued

to three hundred thousand sharea-day average, with an occasional
Peak up to a million shares,

for

■

struc¬

However, the manufacturing
a

although

up-flow of funds, largely
into the American Blue Chips.

growing

was

some

private

level.

geographic regions reported

shown

trading on the Caracas Stock Exchange totaled only a capital value
of
21/2
million B's
($8,333)
for

|940.

ago

lan' investor,

and

small

bolivars

"B's"

the years,
volume of

among

year

the

1,000

activity,

tnan
in
August.
casualties of medium
size, those with liabilities between $5,000 and $100,000, very
small failures with liabilities under $5,000 and large failures with
liabilities in excess of $100,000 dipped below their 1955 levels.
While the construction
toll remained at the August level,
failures in
all the other trade
groups declined
in September.

occurred

control

during

from

2,000,000

less-numerous

were

year-to-year rise

capital

Again owing to the attractive
local opportunities for investment
and
speculation,
the
American
stock market does not offer too
much inducement to the V6nezue-

attractions,

never-ending,

.'stock

the balance sheet,

are

of the September casualties declined 29%
to
Although the total was the'lowest since October 1955,
by 19% the volume of September a year ago.

Failures

While

common

the com-

are

It is true that the price of seats
the Caracas Stock Exchange

the

near-fantastic market situa-

prewar

constant

Regulation is

on a self-imposed
basis, with no SEC-like body. One
of the important provisions typically laid down by the Exchange
authorities is a prohibition against
bonds exceeding the amount of

bolivar tech-

staking

corporate

over

liabilities

it exceeded

buyer
a

$39,000,000.

Here, then,

Not

The

at present

prices.

ports

the

demand

They may
outstanding shares or go in
controlling basis to improve

management.

individual and family holders

situation that is forcing cutbacks
production.
Duev:to the quality r in fabricator plants and serious delays in the building of schools,
/churches and plants.
Also, it probably would lead to a clamor
and extent' of .the 4mittirjg prop¬
by other industries for defense ratings.
erties, the f£cent i addition of two
more
mining claim -areas, some
prospects in copper and uranium,
Falling 15% in September, business failures decreased to 932,
as
Well as mercury, and the in¬
the lowest level of the year. However, the toll was at>a postwar
tegrity of management, Interna¬
high for the month of September, and was 13% higher than a
tional Metals may present an inyear ago.
Only in 1939 and 1940 have September casualties been
teresting speculation to those
higher, since the depression year ol 1933.
patient enough to wait for de¬
The failure rate dipped to 51.4 from 51,7 for each 10,000 enter¬
velopment to continue, and pro¬
prises listed in the Dun & Bradstreet reference book, but was
duction to begin. There's a solid
18% above the September 1955 level. Casualties remained below

products,

showing

speculative

the

house

banking

controlled entities.

lan

buy

(with the

n g

years

depends on whether the tanker program gets the green'
But the linking of controls with the project by some gov¬
officials has steel men on; tenterhooks.

-Giving

May

ernment

believing
that
company - funds
should he. prudently employed in
ore development, and that salaries
should" await the " time of ^actual

Wilfred

exchange listings of
kept to very low pro¬
portions because of the fear of loss

,■

without

ardor for stock

has

and there are indications that a groundswell is
taking shape, will
registered; and
leave many steel consumers
holding the short end of the stick,
by th«; end. oL August these had ^at least for fourth
quarter and probably first quarter of 1957,
been publicly sold, placing $340,this trade magazine asserts.
'000 irrthd company treasury. One
'7
Meanwhile,
the
government's
proposed big.oil tanker program
hundred thousand of these shares
is confronting steel producers with another
worry and
that is
were purchased at the public sub¬
the possible
imposition of controls on plates and structural.
scription price, $1, by officers, di¬
serve

pace
coun¬

over-a 11

t i

the
New

come in through private in¬
vesting
companies,
sometimes
merely participating in Venezue¬

has

securities

enters
ways.

engage in the underwriting of
issues.
Or American capital

may

prac-

were;

rectors and their families. Officers

o c

issue

Venezuelan

Again, stock

to is that

in securities

issues

into November and December.

are

lical standpoint.

capital

several

estate

Financiera Venozolana) buy out¬
standing shares on the Exchange,
new

where

problems, the auto industry has turned down
only minor tonnages offered by the mills.
What was- left was. )
gratefully gobbled up by other consumers.
For
some
mills,1
November and December

hedge.
activity

appears

Even with these

;;

the

through participating in Ex¬
change membershiD (through La

individual's money is quite simple,

industry will make considerably fewer cars in October than was
originally planned. When the production kinks are ironed out,

company*

real

may

and

p e

the

investment

York

in¬

as an

the

lie's

the

drafts

notes,

A^erioan

principally real estate whose rise

merely postponing
of production delays,

example,

market

nically at a 49%. premium to the
dollar). Also dampening the pub-

market

are

result

with

stocks

currency

defensive, this trade authority observes.

production

of International Metals

and'directors

respec¬

country's

restraint has stemmed partly from
the
safety and stability of the

have

was

for

growth in an investment atmosphere without bursting out into
a great stock exchange boom. This

on gov-

Government, due in 12 years, sells
to yield 12%.

been hanging back because of pro¬
delays growing out of drastic modeL changes, hesitancy
rebellious dealers and willingness to let the mills be

"warehouse"

ernment short-term

inordi-

are

natejy high—18% to 19%

bond

strictly

country.

growth and boom prosperity. Her
stock market growth has rather
been slow and steady, the activity

other industry
schedules, this

the

generally

push
outlook.

quarter

every

only is
limited, but the yields

not

automotive

fourth

practically

degree

exchange

year-end

Not

guaranteed

be¬

destructive im-

the

zuela,

Age," national metalworking weekly,

afraid

are

country

Thus in Vene¬

automotive

ail-out

continent varies

market.

Venezuelan

soundness

flation

agency

difference

Mr.

the

serve

the

automotive

properties

for

ket, also inflicts
pact

•

\/v ./;/

with the

mean

/
_

and credit instruments; and on
determining influences longer term issues, Simon Bolivar,

available

industry, had the biggest

anxiously

does

America

Southern

common

the week before.

are

"The

steel

Detroit's

Oh May 14, 1956, 400,000 shares

Corporation,

our

currency,

Detroit

visit

recent

—The Editor,

tive

914,500 the week before, while
the year-earlier level of 799,300.

the

Insured

What

come

put them

South

One of the

from

load

Guerreo.

commonr

for

"comfortably

play

duction

has been produced since
1869, about five miles from Huitzuco,
a
town
in
the
State
of

better

producers

would

The

mercury

,.i

and

unemployment — the
completed weeks of
the fourth straight week to
887,900

fighting for a preferred spot
trade journal points out. .
/ > '

prop¬

district

during

Activity in securities investment
on

week.

will

Under

mercury

mining

compiled

unemployment declined most in the
Michigan, 13,800; New York, 5,700; Missouri,
Jersey, 3,200 and Ohio, 2,700.

drop.
a

What

was

group

properties.

these

before

week

encing the investor.

The material for this survey was

•

/'I-*'.

try's

ore

Four- of

Oct.

That compared with 8,100

examined, with assays
samples. As a result,
five properties were acquired and

made of

the

previous
processing, coal

food

•/

Benefit
rights were exhausted
by <7,800 persons in eight
large states during the week ended Oct. 6, according to the
report.

expert direction and super¬
vision of Dr. Juan P. Alevizatos,
erties

claims

3,400; New

the

Mexican

the

Michigan, center of the

reduction, 4,900;
following states:

Houston, Texas, to look into Mexi¬

182,000

ended

for the

Initial

declared.

will

Corporation.

some

.1.

unemployment topped

turn

Metals

mercury

from

week

scramble,

can'

noted

were
.

level

industry was a key to
drop in insured unemployment^ as well as in initial
claims,
department's Bureau of Employment Security disclosed.

through

the

scares'* of

$1.50

1954

;

agency
also noted* that insured
of
persons
claiming benefits for

insured

These warrants may be

ended i

sharply from

Oct.

bought at around 19
cents apiece.
Another interesting North Amer¬
ican property, where shares are
publicly available, is International
formed

•

output of auto¬

ended

separately

held

unemployment—declined for

cents; A
selling at 85 bearing warrants for
the

period

stock.exchanges and other markets, as well as
their citizens* dealings in New Yark and Canada. Cites the
attending inflation, tax and other economic factors .infIn-

May.

selling around
$1,000 6% debenture

the

major South American financial centers, domestically

With respect to employment the United States
Department of
Labor's Bureau of Employment
Security reported initial claims for
unemployment insurance declinedto 164,900 during the week

The

Brewis

listed

common

industries.

expansion

some

and off the.

moderately./ Production, of electric

and: paperboard

lumber

number

9%,

The

production

increased

►

May describes the investment and speculative operations

in the

earlier, largely because of "improvements in employment condi¬
tions in a number of
industries, notably automobile manufacture."

here

reserves

rich vein, running
was located last

a new

Mr.

through

ac¬

into several hundred thousand

tons, and

known

steel

Business Failures

ounce,

Ore., owned by Sun Oil Company.
In Alaska, an old mine, The Red
Devil, has been reactivated and
is turning out over 400 flasks a
month.

week, while mild decreases
and

California; and probably the larg¬
est American
producer, the Cordero Mine in Jefferson
County,

run

oil

power,

States, New

Quicksliver

industrial

mobiles and

Idria Mining & Chemical
produces
around 400 flasks a
month; there's
the

Industry

Wednesday of last week showed

„

govern¬

mines back into

many

plus

By A. WILFRED MAY
fc

Wasn't

activity,

Auto Production

$80

just

earlier

market

Trade

Price Index

pre¬

1950,

and

Activities in South America

Carloadings

Commodity Price Index

Italy

and

Production

Electric Output
p

King Street West

Toronto 1,

Canada

limited

The Commercial and Financial Chronicle

(1746)

Oil

Steel Sales Outlook for 1957

"is

each

ducers

The

year.

are

reserves,

oil

race

maintain

pro¬

their

com¬

ingot rate of 90% of capacity, within

happen
make

years

industry, I have

steel

the

things

seen many

which

would

seem

forecasting for an entire
hazardous
undertaking.

year

a one

farm

halted

product
that

and

the rise is

one

prices has been
they are now on

outlook.

proved

for the im¬

reason

Another

the

prices being realized for
and hogs. This means an

higher

Full order books have faded away
within weeks to a status where

estimated increase in net farm in¬

the

come

mills

tom

the

enough

scraping the bot¬

were

barrel

accumulate

for
the

On
the other hand,
reverse has
been true; where very light order
books were suddenly flooded with
a
rush of incoming orders. Most
of this type of condition happened
prior to World War II although
on some products it has happened
tonnage

rolling.

cattle

approximately 5%. There
doubt that the farm equip¬

manufacturers

ment

steel than in

Sales

Outlook

The

In order to determine what the

1957 will be so fat1 as steel
sales are concerned, I decided that
the best place to find out was to

year

contact those industries which

are

of steel.

consumers

the

most

industries

which

discuss briefly due to time
limitations, I have contacted chief
economists, market research
heads,
purchasing
departments,
and other executives, both manufacturingsjand sales, to get a crosssection opinion as to what their
shall

business

Also,

sources

desired

used

were

information

re¬

garding any particular steel prod¬
could

uct

did

find

economists
for

considered
that

felt

six

not

were

most

that

than

future

any

sufficiently

•

which to

•tons-or. about

Machinery

production.
at

ders.

' Year

1955

export

demand

will

con¬

tinue

heavy during 1957, and it is
estimated that 4,000,000 N. T. of
various

strike.

had
It

there

been

steel

note

that
a

during the first half of 1956
change in the demand for vari¬
products

ous

items

took

tin

plate,

semi-finished

place.

Such

sheets,

products

and

declined

while

bars, pipe, structural shapes
and plates increased.
Export
houses, generally, find American
prices high compared to European
and] Japanese prices on a number
of

products.

that much

There

doubt

tonnage could be

shipped to world markets tem¬
porarily by United States mills
than is being shipped
but they
prefer to take care of the domes¬
tic

market

first.

Year

Net Tons

1955

1,336,886
1,403,000

1957

the

year

1956

and

tractors,
their

from

the

parts
1955

farm

the

sales of Farm Equipment such
farm

implements

declined
level.

sharply

The

con¬

of opinion sCems to be that
1957 sales will be higher than the
sensus

2956

level

but

still

below

slight decline in the last half

As has been stated,
industries should consume

steel in

*An address by Mr; Clark before
National
Industrial
Conference

City, Sept. 2i,

lyod.

Several

large mills

state that
the e^d of a

see

demand

for

allo¬

through 19*8

comoanv

steel

they
this

for

this

The

puroose.

not

ex-'

pected to influence the 1957
look

out¬

the

projects undertaken
year have largely been

that

and

these

1957

Not many people realize it out¬

largest customer of the steel
the Warehouses and Dis¬

about

to this class of trade.

one-

They

are

which

specialize in
selling
small quantities and in giving quick
deliveries.
1957

will

I feel that the year of

good year for the

generally.

know

that the year of 1956 has been one
wherein warehouses selling plates
structural

shapes

have

had

selling

only

sheets

slow

have

turnover.

had

believe

that

during 1957 the warehouses

and

distributors

about

20%

will

the

again

take

finished

steel

products from the mills.

cline..

1955

increase

was

there

the

was

small

amount

steel

consumed

by this industry. How¬
ever, the estimated
consumption
for 1956 shipbuilding is consider¬
ably larger than 1955. The ship¬

building

industry .is

strength
will

1956.'
to

least

gaining

it aopears that

and

20%

1957'

larger

than

One large company stated
that in 1957 there will be a

ship on every way in their yards.
The great .increase in world, trade
has caused a

shortage in available,

bottoms.

Increased,

business

Add -to
ments

this

Transportation

and

rates

ocean-

attractive

the

Building
Year

the

Suez

need

thp^fore

sumed

by it
tonnage. -

Net Tons

1955.
1957

90%—or

90%

Ganal

much

will

stceJ

con¬

larger

«"

for

maintenance.

construction

The

railroads

have

1957

7,000,000

container

the

use

industry

con¬

The high level of industrial activ¬

pails,

ity and' plant expansion programs
have meant good earnings recov¬
ery for the railroads and equip¬

cooperage,
boxes and straopinq.
Of
these containers by far
the
most important to the steel indus¬

ment producers.

During 1954 and

1955 expenditures
as

for track work

compared to previous years re¬
in increasing the deferred

sulted

maintenance

already then

The result is

exist¬

anticipated

try
and

and
and

cans

cans,

other closures,
drums, shipping
gas
cylinders,

made

black nlate.

from tin ,r»late

The competition

the container business as be¬
tween cans, bottles,
paper, alumi¬
num, and to some degree plastics,
is severe and continuous.
How¬
ever,

products involved.

the

year

substantial

sumption

1957

will

bring

increase in the

con-

So far as car building is con¬
cerned, it is expected that at least
75,000 freight cars will be con¬

p'ate for

structed

amount to 7,000,000 net tons.

1957

comoared

estimated 65,000 in 1956.
tinued high industrial

well

the

steel

Con¬

activity as
strong possibility that
will

allocated

this part of the railroad
indicate increased

use

industry
steel.

Gas
Year

and

Oil

—_—3,185,000

1957

3,435,000

tin

cans.

plate

Five

plate

and

black

Total tin nlqte an'T

consumption

will

sized farm

Hungary and
all Communist

are
v

90%

State

our

export market and
ture of

crown

sures.

While
a

the

caps and
we

are

Bargeron

supports.

The Agricultural Secretary, ad¬

Department takes
positidn, I think,
of

business

our

government

and

not

I should hate to
federation

the

see

broken

up be¬
we
could not possibly jus¬
tify the silly shenanigans of the
USIA or the spending of so much

money on the military and foreign

that this controversy is aid.
being magnified far beyond its
importance to the farm problem, <r
nevertheless fought to the bitter
mitting

Yates, Heitner & v

end at the last session of

Congress
for the flexible system.! The rigid

system,

makes for more
production and acids to tae huge
farm surplus. The Democrats con¬
tend the lower supports make for
higher
production
because
the;
has

to
produce more at
prices to make botn

meet.

;

one

point the Secretary

completely right and that
is'; that5, the difference '•< between

seems,

flexible

supports

and

rigid

90%

ST.

family-sized farm about whicn all
of the political wailing is about.

LOUIS,

Mo.—Paul

Brown

& Co. and Yates, Heitner & Woods

the formation of

announce

partnership to be known
Heitner

general

investment

successor

Woods,

new

Yates,

conducting

Paul

business

Brown

a
as

Co.

A. Yates, Jr.,
Heitner, James H.
Woods and Sumner Shapiro gen¬
eral partners, ard Walter C.
Haeussler, limited partner.
Partners

are

Norman

.E.

little to the small

means

Woods Mergers

say,

lower

but

James

Announcement is also made that

O. H. Wibbing & Co. and

Redden

and

Company are now associated
Take a family-sized
farm that with Yates, Heitner & Woods,
has $1,000 wortn of production in Tarleton L. Redden, Ray H. Wib¬
Commodity Credit loans. Obvious¬ bing, Oscar H. Wibbing, Joseph L.
ly the difference between 80% Kealty, Adolph W. Juen, Lambert
support and 90% support is less O. Siesener, and Herbert M. Roach
than $100. But to the fellow with joining their staff.
Yates, Heitner & Woods is now
$10,000 in loans, the difference is
approximately $1,000 and/those located at 819-21 Pine Street*
Mr.
Heitner will
continue
as
fellows with $50,000 in loans, the
difference is about $5,000.
Manager of the municipal sales
.

It is

fact that

received

farms have

some

much

loans.

crop

$1,000,000 in

Some huge loan3

are

made

tween

Benson's

those

and

of the

to the

scale

Another

Democrats

the

industrial

and

that

now

revolution

it " is

Poland

country

There is

overnight, we have been
destroy us and to defend
ourselves against that contingency,
we

can

have

spent

dollars."

change

unlimited

Indeed,
our

billions

have

traditional

had

modes

instances. because

many

tne

Russians would not understand

Why

able

and Hungary in
minutes, in the time in

not

ment.

A. G.

Allyn Elects
Two Mew V.-Ps.

(Special to The Financial Chronicle)

CHICAGO, 111.—C. Allyn, and
Company, 122 South La Salle St.,
have

announced

Crawford

and

that

Palmer

Robert

Creek

have been elected Vice-Presidents
of the firm.

Schirmer, Atherfon to
Admit John Porteous II
BOSTON,
Atherton

Mass.

—

Co.,

Schirmer,
.

Congress

Street, members of the New York
and
Nov.

Boston

Stock

Exchanges,

will

admit

John

Porteous

Poland

squelch
20

Russia

us.

will

Roach

trading depart¬
ment and Mr. Shapiro will be in
charge of the commodity depart¬

politicians

which

the

about.

military
of Russia

and Hungary?

told,

Mr.

Manager

supports

observation

with

department;

big fellows, not the

concerned

faced

wnicii

ciamied

tney

could
destroy us? Why, as a matter of
fact, was Yugoslavia permitted for
so long to sit there and thunlb its
nose
at the mighty Russians and

II, member of the New York Stock

other clo¬

product for which I have

great

made

are

Exchange, to partnership.

With Hayden, Stone
(Special to The Financial Chronicle)

BOSTON, Mass. — Frederick J.
maintains its independ¬
Brannan,
Jr., is now affiliated
although having renewed its
diplomatic relationship? It really with Hayden, Stone & Co., 10

even

now

baffles

required .fox; fopd;

Continued

Now,

manufac¬

discussing

18%

page

•

cause

Carlisle

Post

me.

ing; the balance will go into the

respect, it may interest
you to know that 60% of all cans

They

pos¬

order

new

ence,

million

tons will go into
the domestic market for can-mak¬

Net Tons

1955

black

cans,

Drilling

the

10% increase in 1957 for the steel
^

chiefly

compressed

are

order in

and

Russia

and

Russian

must return to

far' might

of steel products is

consists
caps

new

Poland

satellite.

help the
family-

small

passing scene: Where is that; tre¬

cerned

barrels

try has, so long as it is an inde¬

mendous

been
encouraged
by the rising
trend of revenue freight car load¬
ings and net operating income.

steel

there

Yugoslavia and the

pendent

crcier

NetTons

6,723,074

crown

contend

what kind of government a coun¬

e m o-

little fellow whom

1955

The

tind

who

the very logical
that it is none

rigid

tnac

are

Year

We shall consider first the mar¬
ket deimnds for rail andxtrack

difference between Russia and

But

insist

crats

accessories

concern

Containers

1,600,000
——1,800,000

supports.

The

one.

develop¬

recent

potential

and.

those in this country,

are

course,

making the ship¬

regarding

the

There

governments, h

—

in¬
the

Russia.

sup¬

say

least.

sible

California, Iowa, in In¬
longer hauls on oil and other car¬ diana, and to at least one cotton
farmer in Mississippi.
But ic is
goes and we can see why the ship-"
apparent.. that tne difference be¬
building industry is on
and

crease

Car

parity

port prices

they feel cocky. It offers
teresting contemplation to

have resulted in

ping

range

from

ends

;'the" in¬

Rail

the

the-de¬

over

farmtr

1,200,000

building industry

opinion, is

flexible

Between 1952 and 1955 the ship¬

side the steel industry but the sec¬

Annually,

601,234
1,000,000:-

1956

15,758,005

are

' ^

Net Tons

1955

mills

Shipbuilding
Year

Distributors

Year

ond

completed.

campaign, in

v°rv

for

credit^ situation hs

1955

Warehouses

the

Board,

steel

the

purpose.
The limiting factor for
1957 is the
plate tonnage made

1957.

1955.

The fact that the downward trend

Wear York

by stabilization

of 1957.

ing.

Farm Equipment

During

followed

shipped to

interesting

all

approved and credit arrangements

1957

markets. This
is close to what would have been

shipped

manufacturer

one

for

semi-finished and finished

steel products will
the various world

been-in¬

rather

3,500,000 V
3,500,000

•1956

The

•'

have

expected to increase to the middle

excellent business whereas others

Net Tons

are

even

plates

yet

heavy

tight

Shipments of machinery

and

continuation of this

pipe that

available

strong as have been new or¬

very

warehouses

Export Market

■

formed
line

1957

for

demand.

been

try

shows

1956.

the retail stores of the steel indus¬

the

outlook

have

too

upon

pipe lines. The demand for this
type of construction is very strong.

this

that

quirements for the construction of

The

issue

industry
the added re¬

there is, of course,

above

shipments

the

base potential sales and

Therefore, let us look
following industries:
-

2%%

million

8.1

fifth of all finished steel products

months

therefore potential

reach

over

available.

are

cannot

industry
forecast

accurate

•

of the News

By CARLISLE BARGERON

which
for which fig¬

In connection with this

producing

tributors.

considered

ures

cated to his

1956.

reliable.

reliable from the viewpoint of be¬

ing

mill

estimated

appeared to be for 1957.

other

where

shipments of steel to
machinery industries in 1957

the

figure,

year

has been sold.

1957":

major

Machinery Industries Including

However, to get to the task at

the

about

consume

shipment

is the last full

high

Electrical

band—"Steel—The

1955

have to be reflected in high¬
prices. In 1957 this industry

may
er

the

1958

should

such restrictions

to any great degree
drilling. Steel requirements
After only recently having be¬
by this industry have increased an¬
come a
farm expert by virtue of
nually. Due to the shortage of oil
writing a book in cooperation with
country goods, steel shipments ip
Ezra Taft Benson, the phoniest
1957 will increase about

higher material costs wnicn

with

since that time.

for

faced

are

Ahead

from wells

interfere

not

two percent

restricted,

oil

with

119 to 120 million ingot tons.

range, or

During

ac¬

nO'drilling is undertaken.
the flow

While

Mr. Clark concludes 1957 steel sales will support an

in 1957.

crue

pros¬

including the much discussed auto industry, Detroit
Steel's executive officer anticipates excellent steel business

Washington

save pen¬

alties on. reserve leases which

pects,

From

prove

petitive position, and to

Steel Corporation

By calculating major steel consuming industries business

Thursday, October 25, 1956

record

By II. V. CLARK*
Executive Vice-President, Detroit

ops*

...

Russia
too
to

it
like

that

mighty

ourselves has

become

may

powerful to fight. Followed
its logical conclusion it means

that in the not too distant

future,

the two "mightiest" nations of the
world

will

potent

and the-little nations will

kick

both

find

in the

themselves

face every

im¬

time

Office

Square.

Two With Inv.

Planning

CRrveial to The Financial Chronicle)

BOSTON,

Mass.

—

Nelson

Benedict and Oscar C. Sjodin
now

E.
are

with Investors Planning Cor¬

poration of New England Inc., 63
Devonshire

Street.

Number 5580

Volume 184

The Commercial and Financial Chronicle

>..

(1747)\?
'

including members of the Board
System, rfiake it clear that
they Would claim less credit for
the happy- results than their more
extreme ' disciples would like to
claim for them. As equally cogent

serve

And Problems
\

By ELEANOR S. DANIEL*

;

Noting early 1956 downward-drifting outlook has shifted to,

least through end of
1957, insurance economist offers frank analysis of encouraging and cloudy "factors now operating, making equally valid

near,

fn&w is prsttv well assured,

Mrs^ Daniel recapitulates -underlying forces conpast decade's remarkable economic stability ;
describes present propulsive forces now operating; and foresees
rising pressures on profits, continuation of some , sore
spots, increased competitive selling, and emergence of Federal
spending rise for first time in several years.
iudee
pge

To
10

may

where
wnere

economy
auii

our
our

look

should

one

going

the^ong

term, and over the
immediate past as well.

over
more

Over the "Long Term"
the
the

since
since

vears
years

1940

our

year

have

was

received by

the

population

Even

1939

country's naticnal product
and stanaard

If
%■
J|

this

crease

living.

dollar term-s

W.-

our gross

price

in-

aside,

creases

S. Dan.ei

it has virtual1 v

doubled,

Even if the record is qualified be-cause

population - has risen
forty-odd millions in

some

pie

This

who

never

-Here

basic

(a)

Once

price

by
the

rapid major economic upsurge in
placfe in 1948-1949 and 1953- a slack labor, force and excess
extraordinarly mild.:, capacity as we came out of the
7n each case the decline in output Great Depression. Unemployment
took

1954' Were

peak

low

point

sons' in

econ-

five "and one-half million of these
had been drawn into productive
endeavor. •' Another
10
million
were added to the civilian labor
force as the result of population

has been almost depressionon the down side, it has also

ony

itself

proved

unusually' resistant
inflation

excessive

averaged some eight million per^1940, but 15 years later

.no

was

If the

side.

Desmte

stable when

the

sharply rising wage
have
been
fairly

prices

rates,

growth and the greater participa-

leave out of the

vou

tidri of

women

and older workers

over

in.any

one year

never do

ward revaluation to enter the debt
and

income

structure.

How long

the process takes,j, on the
average,
to exhaust itself is one of the un¬

solved mysteries of economics. It
certain that when it does play

out.
of

one

substantial

vpra

source

support will be pulled out from

under

(b)

our

economic

Another

structure.

factor

which

growing

incomes
were

prices

-rrose

rise.

This

occurs

when

time, the

up¬

grading has been even more propounced. tthan. 4in
some; earlier

nearly

has

the

economy in the last 10 years is
the
upgrading of standards of

because

years

consumer

credit has

reflecting the true demand-supply been readily available on favor¬
situation. -Such price increases able terms.
have accompanied every great
On every side we can see evi¬
war in Americani history; the only dence of the insatiable demand of
diffaience i£ that this time the lid consumers fqr something better.
was kept o|n during the war and Cadillacs have seen no slump in
abruptly removed thereafter. The sales this yean The average cost
repercussions of such a major of dwelling units has more than
price level adjustment take time doubled in 10 years, although con¬
to ramify and spread the through- struction costs have risen only
out the economy. Their lmmedi- some 75%. In retail stores, the
ate impact is on consumer expen- physical volume of sales in the

J.}'tu^es *or current purposes.
^ucl1
tar-reachmg howTZ '? theIF ultlnWte effect in

last

five years has lagged

dollar

! ' °f TTZ 11 IIZ
Thus we had the sheer numbers producing

picture the sharp rises which oc-

*pf tta

some

came in living which always

controls

for all prac¬
tical purposes—it takes a consid¬
erable span of time for this up¬

With this groundwork of

stability. The two recognized business adjustments which

—and

the immediate postwar years. Once
the upswing got under way, sev-

level,

people and money, almost anyunquestionably
reinforced
thing could be sold at a profit in basic monentum of our

to make it cumulative.

of ythe

some

are

(l)^We had the real basis for

fabulous

from

tion

few dollars to rub together at
any

- (3)

last year's

increase

Since only> a' small por¬
the -capital assets

country turn

that peomore than a

had

billion

mortgage debt represented

another;

means

been'a peridot only-.factors whir); have been operating removed in 1946,
fabulous growth, but also oi in- dur.fay.or;. .
rapidly to a level

quadrupled;'" proof

g--

Eleanor

much for granted.

money

of
their
newly
acquired purchasing power. From
1940 to 1945,
therefore, individuals'- -liquid
assets
more
than
tripled and business holdings rose
more.

$13

pur¬

thing has been accom¬
plished through corporate .mergers
a"d -acquisition
of "one firm ty

pr oportion

even

incurred

this process. On the business
the same

income. Under rationing and price
controls, neither individuals nor
business could < spend >a normal

take^their future continuance too eral reinforcing elements

top 5%.

Fabulous Economic Stability ;

out-; n.ore-than about 3%.

put has almost

rapid increase in

ai #ro-y, This has

digiousin-

forward thrust. By the-same

token, as time goes on, and these
facts are accepted as part of the
general .environment in which we
bye and work, we may tend to

one-quarter,

was

historic

very existence of these underlying time in their lives found themforces, or, at least have tended to selves in 1946 in an unexpectedly
ulHcrestimate their persistence flush financial position.

Now, only some 15% of all income

wit-9-..

If Hies^ed

after taxes

true
'taxes
retfa
goes
.e
to
rpthe
war

year—and have all been so wrong
on so many occasions—lies in the
fact that we have forgotten the

that in 1929 one-third of all inof

have all

much

In the
process,

mortgage to finance the

home

tive. 'During the war, deficit fidancing through the banks geneVated

something

someone

chase.^ Perhaps half of

way, to look
vmwrifenin® of the income

too

been such "nervous Annies" about

^thisbroadcmng of the income
the

that; the reason

the, current business situation each

estimated/ Another

come

may

course,

new

;..

cioft

*'
ABasicMomentunj, y
•.

After

war.

into

bigger and better.

all, however, demdnd as business
knows
it,
must
be
registered
through" "what tinkles in the cash

pretty remote from the dayto-day concerns of your business
mine:. However; it .may still
profit, .us to refresh our memories
on what they are.
I have a suspi-

and

the depression and the

seem

<.•-

mitments.

have been pass-

|: .Sucjh underlying forces

tribnting to
.*■

proceeds

of deferred demands for all kinds
of commodities built up during

economy

that several considerations call,for caution in present com-

that the

the conclusions

present, but- it has been
greatly intensified as th4 result

an era in which our
has had unusually strong
underpinnings; on top of this, we
have been extraordinarily lucky.

•

present general view of prosperity at

may have purchased a house for
$6,000 in 1940 but has since sold
it for $18,000 and
parlayed the

ways

ing through

York

The Mutual Life Insurance Company of New

is that

answer

Research

of Economic

Director

time demands
stopped
preempting the output,
(2) The urge to consume is al-

oj>Governors of the Federal Re-

The Outlook's Promise

volume—and

all

behind

in'

pe*

riod of comparative price stability

This is another influence which
an upward revaluation
meantime, or about one-quarter, it delayed effects of World War II of people—largely in the prime of of capital, assets as the basis for hast the honest economists scratch¬
is
still
overwhelmingly; impres- and the abolition of price controls, their working lives—first to man debt extension and further spend- ing his head. Does it represent a
sive. We have produced
enough to/ and those which followed the out- the machines, and second to con- ing. > We all, have, in our circle of permanent and enduring raising
give all these
the

into

real .standard

babies brought

new

world

the
of

same

average

living

their

parents andhave then raised the

by almost 50%.c.'Even;if

average

Uncle
now

Sam

takes

taxes,

from

have

40%

some

higher real spending power on the
average than we did just 16 years
'

The

_•

have

economic

seen

revolution

this

last

decade has

made

Henry Wallace with his
Sixty Mil ion Jobs" look like a
piker
The only .trouble, with

Henry Wallace was that he wasn't
starry-eyed enough in that re-

ieTZ
^ w^at
1945! In

thought in

the last 10 years we have

reached goals that didn't seem at¬
tainable in twice that time.
We
reached 60 million jobs in

1950, 65

million last year and

66.7 million

just last month.

only

'there

haven't

that

our

The

been

reason

jobs

problem

has

?0U
it

T*r

fill them.

people to

growth

working
layed

age,

people

reflecting

the

de-

^ec^s of low - birth rates

dunng the depression.

Market potentials have

panded much

even

all

know

that

you

have

only

with

the

one customer—the

$49,000!

the

man

last

however, many families
have shared in the increase of in-

years,

come,

and income is

distributed
prewar

days.

one-fifth
earned

had

only

proportion

of'.all
much

climbed
is

1929,

was

$4 000

back

•

perhaps

family

a-min .by

60%over $4,000

widely

than

now

with

sufficient

that

1945.. Now

sional

economic

watching;

for Business

Chapter,

Mational

before
S^iety

Budgeting, Sept. is, 1956.
V'.lt,

" '

This

war-

wnen

friends,

announcement is neither an
f

ex-

direction

one;

Actually,

offer to sell

the 'other.

ha V

on its head, or
doing
temporarily interrupt¬
ing its growth. Between 1944 and

than

1947.

Federal

lion

government

goods and

P Consolidated

offer to buy any of these
■

' "

rate

Edison Company
of

First and

New York, Inc.

Refunding Mortgage Bonds, 4JA% Series M, due October 1,1986
Dae October 1, 1986

Dated October 1, 1956

spend¬

plum¬
$90 bil¬

closer

one

Interest

payable April 1 and October 1 in New Ifork, N. Y*

„

drop of some 80%.,
jn just the iaSf. three years, it has
dropped from a $60 bullion rate to
fho

solicitation of

service

downward from

annual

present

billion;

Continued

who

weathered

the boom out

mora

meted

nor a

worst

amazingly sharo shifts in
demand from diff°rentquarters
in the economy, without turning

homeowner

Bonds. The offer is made only by the Prospectus.

some

ing

some

for a full 10 V
years
now,
and
thinking, "we '
certainly won't weather this one!,";
every time the baby veers sharply ./

the

. ..

„

practitioners /

anxiously,

figure

Inventories

about

have

Price 102.14% and Accrued Interest

'jruea

$45

fJu^tu-

r: •

ated. bv smaller amounts dollarwise, but the fluctuations have
violent, concentrated in

Copies of the Prospectus may be obtained from only such of the

shorter pm-iod of time, and even

re7ativelv.

greater

sperdlng

Even

business

undersigned dS

dential; construction
annreciablv.

ha^e

Desmte

all

may

legally offer these Bonds in compliance
States.

with the securities laws of the respective

fixed assets, and resi-

vnri°d

the

adjustments imp'icit in this millMORGAN STANLEY &

ing around, however, the national
product has declined in only
since

yeqr

1954

1946:

the

and

drop

that

one

BLYTII &

year ,was

less than

was

IIARRIMAN RIPLEY & CO.

CO.

KIDDER, PEABODY & CO.

Incorporated

How
we

CO.

EASTMAN DILLON, UNION SECURITIES &

CO., INC.

GOLDMAN, SACIIS & CO.

1%.
all t'-is achieved? Did

was

really -"plan it tuat way?'?
we

MERRILL LYNCH, PIERCE, FENNER & BEANE

LEHMAN BROTHERS

the"* case,

0rmn

SALOMON BROS. & HUTZLER

STONE & WEBSTER SECURITIES CORPORATION

merely been "right for the wrong
reasons?"

jast

Certainlv.

severqi

keeping

least

WHITE, WELD & CO.

wide gov-

years,

conservative

adJre.sshy
Mrs. Daniel
York

New

over

pecting

ernment
.

the

its

rock

pretty vigorously. The
an
assortment of
governmental nurses and profes-

has Tiad

baby

units-j-ave
and

spunk

when

product

their

cradle

own

an
average
income of
$25,000 by adding 49,000 and 1,000
and
dividing by two, but you still

•

sume

the

calculate

in Korea.

war

You

been

can

the

representing

might compare this boo-ni™"®
we have been seeing to an unusu- *
aijy strong and fast-growing baby
.

ex-

given above would indi-

averages

cate.

than

break of

1946,

mW?s *15 b^'llion,

We have recently seen

slower

been

not

curred

October 21956.

policies have heiped by
a

However,

hand

the regulators.

government
•

officials,.
•

i..

page

The Commercial and Financial Chronicle...

(1748)

find

Sale-aod-Lease-Back Technique
To Finance Indnstiy Expansion

Dealer-Broker Investment

their hands

tend interested partiet

by proper application of
the tax laws of Canada or the Uni¬
ted States to their individual situ¬

ations.

Area

Real estate head expounds on the
advantages of the sale-and1 ease-back technique for industrial concerns
desiring to ex¬

the following literature:

Book—Explaining the industrial advantages
of the area served
Dept. K., Utah Power & Light,Co.,
Box 899, Salt Lake City 10, Utah.
—

•

The

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,
Thirtieth St.,

1033

Autos—Bihletin

N. W., Washington 7, D. C.

with

particular

reference

bulletins
;

Also available

a •«

Ford

StCel Castings.

National;,
*

—New

York

Hanseatic

; York 5, N. Y.
Burnham

View

-Corporation,, 120

* •'

Broadway,New

Business
4

Opinion Digest—Monthly

Cement Stocks and the Highway
&

New

Rates—Bulletin—Park,
5, N. Y.

Ryan,

Inc.,

Pine

in your minds
in

Japanese Stocks

York

—

120

Yamaichi Securities

York

Over-the-Counter Index—Folder showing

an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

and

National

York

market

performance over
Quotation Bureau, Inc., 46

13-year

Front

period

Petroleum Situation—Review—Chase Manhattan Bank,
leum Department, 18 Pine Street,'New York

for

Growth

Income—Bulletin—Laird,
120 Broadway, New York 5, N. Y.

Meeds,

Continued

be converted

can

operation,

have

adequacy of

varied considera¬

into

We again suggest that
clients

can

you

and

your

profit in:

safest

investments.

one

makes

the

opportunity of increment. So,
tenancy can be reto

investment

our

time

the

If,

our

high-grade
inclined
as

only at
being

investment

portfolio,

little

abundance

security,

are
more

investment.

our

event, the third consid¬

any

minds

our

growth

potential.
Next comes available
^income from property, and that, of

is part of the growth

course,

tential.

po¬

*7.

*
,

After

these

weighed,

things

have

consideration

been

out

"thinking machines" figure

their

one-shot"

business

take

many

and

give

them

variety

and

Spokesmen

enough tool replacement business
keep the whole industry operating at capacity for at least
seven
years
and "that competition being what it
is, no
company hereafter can afford to be
caught with its automation
down."

•

The Cross
•

„

that

could

the

United

the

time

the

invest¬

do.

The

amount

both

the

going

rate

the

and judgment of the risk
said

the

HAnover 2-2400

or
there

that

vertibility
makes

real

involved,

before, tenancy and

where

*From
before

the

Canadian.

address
Annual

by Mr. Glickman
Convention
of
the

Association

Halifax,

Nova

Real

Estate

Scotia,

Oct.

other

con¬

which

uses

subjects

proper

the
present tenant is a
corporation with the high¬

est credit

rating. -r

Funds

Are

Naturally

Available

interest rate on
the mortgage end of financing in
a sale-and-lease-back deal today is
the

bound to reflect the rise in the in¬
terest

rate

generally.

When

ready supply it affects all in-

rates—on

mortgages,

commercial credit,

since there are
institutions which must in¬
in suitable mortgages, if such

many

vest

available,

are

these

and

institu-

from amortization^ and interest
current

and

rise

the

the
in

the

money

interest

rates

the country.
There

industries

make

credit

these corporations

that

day.
from

It is

the

be¬

are

to those who suffer

policy because of their

individual situations to find their

that

tate

But ingenious

accustomed

men,

real es¬
to. solving

problems, will know where to lay
their

hands

As far

it.

f P0*1 sale-and-lease-back transac¬
tions, I think that there is plenty
of

available.

of many

In the judgment
investors, especially those

have

who

accumulated

wealth

savings and
hard work, real estate is a pre¬
ferred investment at any time, all
other
things
being
equal,
and
thousands of them are standing by
with ready funds, waiting to in¬
vest in sound purchases,
through

their

own

Accordingly, I want to suggest

Francis I. du Pont Adds

the

way out for many industrial
corporations, especially manufac¬
turers, for new money at this time

into their

tate

portfolios.

find

assets

own

they

There

which

can

real

(Special to The Financial Chronicle)

SAN

'Calif.

FRANCISCO,

Henry E. Gundlin has been added

may

to^the staff of Francis I. du Pont

turned

ing their right to tenure ii\ their
own
buildings. They may' even

Co., 317 Montgomery Street. He
formerly with Hannaford

was

Talbot.f

have

thorough knowledge of all phases of the invesfiment business;

worked

countrywide

bring
I

words

self

the

and

Box

DEMPSEY-TEGELER & CO.

York

with

large

retail

believe

in.-the

type

business

and

"go

with

forces.

advertising

new

departments
My

and

successfully;

dealer

production

retail

acquaintance

makes

interesting

correspondence
ideas.

constructive

that
other

producer who wishes to associate him¬

combination

forward

trading

sales

own

have

getter" qnd

capacity

trader,

thinking

salesman,

organization

wholesaler

who

can

use

and
my

production.

1018,

supervised

scope.

correspondent
talents

Teletypes NY 1-376-377-378

and

closely

Commercial

Financial

&
•

TO AN AGGRESSIVE ORGANIZATION:
have

—

es¬

into cash without affect¬

quickly

reading.

New York 6, N. Y.

„

equity money goes for

out.

way

mortgages. I do not imply
mortgage money should be

plentiful.

question but that
many
businesses should expand
and promote at this time, because
the competitive situations in their

government bonds, on time loans

market

-.I

& Co.

the

demand for money is greater than

current

because

tightening

have-organized
i

for

investment, especially

motion

is to look

risk go hand in hand.

them

estate

sound

the element of

tions have a steady inflow of funds
from savings, from premiums, and

own

time

specialized potentials.
many
properties

are

have

especially
who are curtailing
their plans for expansion and pro-

upon

Warner & Swasey Co.

•

States,

ing unfortunately handicapped to¬

Systems

Members New York
Security Dealers Association

Trinity Place

value

manufacturers

will

immense

exist

Troster, Singer

right now to numberless business
corporations in Canada as well as

that

whole to the return

DEPENDABLE MARKETS

Snyder Tool & Eng.
•

But

am glad to talk about sale-and-> and bond issues. But the sources
lease-back once again, principally of mortgage credit should have an
because I think it is a technique ampler supply than the sources of

plished under the credit conditions

are so

Mechanical Handling
•

which

equity, and in the process of
doing that we must consider the
financing that can be accom¬

Kearney & Trecker Corp.
•

one upon

deal

that salability

terest

advisable,:
so.
A broad policy
stringency cannnot be
applied by any central bank in a
discriminating
way.
The
bank
must act, on the contrary, in the
broadest possible way. The result

prop¬

Giddings & Lewis Mach.:

"■

Company

life¬

could

Some industrial

tor them to do

the

1956.

Foote-Burt Company '
*

This occasion is

Boards,

We Trade and Position:

own

there's

have heard

re¬

and

estimate

given to the amount of cash
quired for the investment and

stability.

which

being weighed. The mort¬
gagee feels about the investment

tool makers

have used sale-

to solve a greater
of complex
real estate
problems than any other method

mi^t

mortgage and its rate depend

Where

variety

investment without

ment is

Automation Stocks

assert that

it may,

manufacturer

sale-and-lease-back

stricted,

ness*

the

the
.

Be that

not

com¬

constructed, or so
is" too lim¬
ited.
I am talking of properties
that have only one use, or very re¬

time sPent *n the real estate busi- the

erty

else.

investor .does

manufacturing

its real estate.

make

then relate the return

Dealers

and-lease-back

every
a

dollars of valuation than

can

up.

that

say

Corporation w'e have
the technique in deals total¬

used

Not

make

play. As we all
know, the very best tenants get
the lowest rents, while the lowest
rents
by the very best "tenants
come

eration

statisticians

anyone

risky

Some

comes

pany.

located

whenever it

men

that

buildings

Sale-and-

m?*?y variations that it makes a

estate

but
to

subject, of intense interest to real

tion and next

page

the

tate,
need

this

business, but because
technique lends itself to so

ling

Bissell

find

of my

ment
-

usage, then we would consider it
further. So, first we have loca¬

Portfolio—For investment—Peter P. McDermott & Co., 44 Wall
Street, New York 5, N. Y,

sale'

I am always glad to talk on the
subject of sale-and-lease-back, not
merely because it is a basic ele¬

have at the moment

Pocket Guide for Today's Investor—Pamphlet containing lists
of
selected
securities for
income, growth and trading—
Harris, Upharn & Co., 14 Wall Street, New York 5, N. Y.

Portfolio

then

Glickman

—

15, N. Y.

Lease-Back

proper usage, and
the site be given its best economic

made.

Petro¬

deals.

Desirability of

second

the

New

Street,

lo¬

like,

lated

4, N. Y.

lease-back

which

the question of

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

great, speciality

times.

From here

Broadway, New York 5, N. Y.

yield

and

;

•

prefer, for reasons souftd to them,
to put their money into real es¬

I ?ne'°/
most fruitful fields for.
investment in these

offer¬

improvement.

City Bank Stocks—Third quarterly comparison of
City Bank Stocks—Laird, Bissell & Meeds,

New

t h

by
a
surgical
speak, into the

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

in,

rent when by doing so
you free
huge sums of money for new op¬
erations. There are investors who

mind, I think I would
growth potential after

skyscraper

for headquarters office, or a
regional office. It is no sin to pay

different prob¬

the

own

space

I were compelled to
consideration is upper

into." "r4.7 *

made

is the location

tions

Current information

—

New York in which it may
occupy

different,

Of course, in my office we have

considering
investment,

property

Street,

presents

but

which

gone

it is not suited to the
location, but
if thp
the nmnprtv ran ho pnrnrortori

York

put it upon

the site is suited to it

Cleveland

one

ration

different

are

property

most in my

property 'oft

Program—Analysis—Pershing

each

lem,
say

question is
whether
the

Ohio.

Interest

were

each

all other considerations have been

the

summjary

Railway, 3809 Terminal Tower,

No Sin to Pay Rent

the first

Co., 120 Broadway, New York 5, N. Y.
and Ohio

could

Since all locations
and

"sale-and-lease-

—

In my opinion there is no more
reason for a
manufacturing corpo¬

estate

If it is

Chessie, Peake and their family—Portfblio of pictures—Chesa¬

peake

consideration

cation

and

Financial Facts and Comments—Bulletin—Gardiner,
Limited, 330 Bay Street, Toronto 1, Ont., Canada.

Annett

property

worthless

The

back" transaction.

men,

ing-

of opinions held
by leading business commentators; newsletters and periodi¬
cals—Federal Investment Co., 901 Sixteenth Street, N. W.,
Washington 6, D. C.

Canadian

piece

any

location.

they may need to do
property and lease
from the new owner, and
so, of course, in a single
the

transaction

real

Monthly investment letter L_ Burnham
Company, 15 Broad Street, New York 5, N. Y.
—

its

constructed

Bank & Insurance Stocks—98th consecutive quarterly compari¬
son of leading banks and trust companies of the United States;

„

Wall Street, New'Yprk>
review of the market and [

Standard Brands, Cooper-Bessemer and

Malleable &

element in

estate

improperly lo¬
cated.
So, as

and General Motors—Bache & Co., 36

first

real

best

Chrysler,

and advises investors what to look for in real estate investment

Atomic Letter (No. 21)—Comments on the U. S. Navy's billion
dollar atomic propulsion program including a tabulation

All

sell

it back

pand, handicapped by lack of cash, and possessing real estate
capable of financing such expansion. A vera ready funds are
available for such transactions in today's tight
money market;

Resources

cash, they
their earnings

situation

is
to

needed

also improve

may

Chairman, Glickman Corporation, New York City

will be pleated

It it underttood that the firmt mentioned

that by a change of real es¬
policy, in addition to placing

tate

By LOUIS J. GLICKMAN*

Recommendations & Literature

Thursday, October 25, 1956

Chronicle,

Park

Place,

New

Number 5580... The Commercial and Financial Chronicle

Volume 1843

■

(1749)

possible

to. convert- securities—* by about $6.0 billion, a substan¬
particularly government securities, tial drop, but they still held nearly—into cash in the market place at $18.0 billion at the end of
June,
a profit or at a
about $1 billion below a year ago.
very small loss.
As I understand it, you as bank¬ Inventories and accounts receiv¬

Outlook for Interest Rates
By ROBERT VAN CLEAVE*

ers

gradually and irregularly rising interest rate

over

consider it

certain

short

part

desirable

your

assets

term governments.
provides liquidity for two

outlook; finding business, conditions look good and that our
best hope is money supply restraint to keep the dollar valuable,
Mr. Van Cleave probes many possible causes that might break
the spiral, and concludes that should such a temporary turn
come, it will last long enough to produce some profits in bond
accounts.* Such a.lower trend yield is expected to last a year
or so and find commercial paper and Treasury bills especially
sensitive compared to prime loan and mortgage rates. Be¬
lieves Federal Reserve restraints have been extremely'gentle,
and cites welfare-state acceptance by both political parties*

have

This
pur¬

and

(b)

available re¬
a large
or unexpected withdrawal of de¬
posits.

up,

source

this

over

the rate of about 30 times

which may be
as
a
lowering in the
quality of current assets. Over-all,
however,
net
working
capital
maintains a Steep rise, with cur¬

regarded

rent" assets more than twice

10 years ago.

a year

compared with about 16 times

1945;

other

leading cities
against
short, money, is moving
about twice as rapidly as it was

the rate
12.

cur¬

now

about 23

„

rent

liabilities, as they have been
during most postwar years.

with which to meet

Reduce Rates and Cut Taxes?
.

Finally,
High Taxes Reduce Impact of

Small Rate Rises

The demand for loans has gone

lately have been turned

able have gone up,

poses, (a) as a source of funds
when the demand for loans goes

of existing money, and

is what has been happening. In
six
big cities/ demand deposits

„

Vice-President, Research, C. F. Childs & Co., New1 York

Forecasting

up, and you have met it nobly-*
even to the extent of practically

denuding yourselves of short-term
governments,. They served their

often

remarked

the

down,

cost

carrying the

Federal debt might be cut by as

the

that

some people hold that
rateswere
pushed

interest

much

half, and this would be
forcing. of interest* rates up
through Federal Reserve restraint sufficient to justify a cut in taxesr
In the first place, nominal rates
cannot be effective because1 Uncle
Sam pays more than* half the bor¬ on much of the debt already are
as

have been struck since if it had been this tremen-. purpose. My impression is. that it.
about one-half of current market
the self-contradictory nature dous volume of loans and securl- was almost universally expected rower's interest cost. The same
which have been 'ties could not have been floated, mst year that ' the loan demand might be said 1 of the- saver and rates; ,in the second Iplace the
debt can be refunded: only as it
leveled against Federal Reserve" But, undeniably, it has. cqst■•'.the'" could^not continue through. 1958; lender — Uncle Sam;takes:more
becomes due or callable, which
policy.
It is borrowers more than it would therefore the proper thmg to do than half of his, interest income.
would mean that a substantial
argued, fbr have a few years ago.
~
was to make loans by selling gov- It seems to me that this is no real
of
the
debt
service
examDle
that
'
3
l
,
• ernments, in the expectation of criticism of over-all monetary re¬ lowering
p01 icy has
' Previous Liquidity Makes
;
replacing them when; loans de¬ straint;- it merely means that ad- (Charge would take many years;
ahd in the third' place,* the only
li e e n almost r
Restraint Seem Slow .
> - clined. this year....
, ; ..
' vances in interest rates have to be
completely inNow the-critic says that if ris- . The other reason fot short-term twice as great as would be neces¬ practical means of forcing rates
down is by immensely increasing
effective. Bank ihg interest rates had beeneffec- investments,
to meet deposit sary in the absence of high tax"
the money supply—something not
loans keep on tive/ the borrowers would have withdrawals. I don t believe that rates in order to produce a corre-*
bank liquidity in this respect has
to be recommended in an era of
spondirig impact, In this light tne
going up, bil- canceled their borrowing plans,
been impaired at all as far as the rises
4
which have taken place seem inflation.
lions of new This is a modern example of the
depositor is concerned. To help even more modest
/
Not a Defense of Reserve Policy
securities are old broken window in the baker's
meet deposit withdrawals is one
being floated, shop, which Bastiat used as an ilNow, even though it may appear
High Rates Inflationary?
spending con-iustration ^ in his . book "Tnirigs
-*he stated purposes for which
to you that I am here to speak in
Then, there is the argument defense of the Federal Reserve
tinues In .all Seen and things Not Seen." We the Federal Reserve discount wmsectors
and have no statistics on loans hot dow exists^ and I suppose there is that higher interest rates are bad
System and its current policies,
business re- made — either because the loan ho practical hmit on the amount because they are actually infla¬ that is
it*
really not the,case even
Robert Van Cleave
mains pros- was
refused or the borrower of advance the System would ap- tionary, in that they add to costs though I believe they are good. I
of doing business.
This
reflects
perous. There- changed
his mind — and only Pr&ve for this purpose,
have taken up so., much of your
fore "tight money" and high in- sketchy reports on securities isBusiness corporations' need for the habit of thinking of cost in¬ time on this topic because I be¬
terest
rates
have
accomplished sues plamied but. withdrawn. Even liquidity is more difficult to judge, flation, price inflation, wage in¬ lieve that these things are essen-*
nothing.
*
here, as we are all aware, the Is- but even here I doubt that*recent flation, and other special types of tial to the outlook for interest
inflation. It confuses the symptom
Qn the other hand—and not in- sues withdrawn so far have been monetary policy has produced a
rates. They are not well or wide¬
Like others, .1

of the criticisms,

„

frequently in the same article or WMehr deferred. Some of them
have been deferred several times
speech—the critic will insist that
before finally coming to market,
policy has been much too harsh.
and it is a fairly safe bet that any
Money is tight; credit is unavail¬
noticeable recovery in the bond
able, It is dangerous; the Federal
Reserve
System
is' monkeying market would bring on a flood of
others. In the meantime, recourse
with forces about which it knows
has been had to bank loans, so
little; it is risking deflation and
depression which, once started, it
will
be
powerless
to
reverse.
Moreover, in forcing interest rates
upward, it is adding to the costs
of doing business. Isn't this infla¬

tionary, actually? If interest rates
were
not
so
high, the cost'* of
carrying the Federal debt might
be cut in half; this would make
possible a tax reduction which, by
implication, would be of itself a
desirable thing.
.

Credit Has Been Available

has

there

that

little

been

ference with plans* for

One

answer

sorbed.

This

group

needs

inverse

trend

re¬

that

sav¬

ings have had to cover a large
part of capital investment, and it
hardly can be denied that this is
it should be.

inter¬

ernment" debt

saver

been

has

period, and which only
ing reduced a little

is be¬
though

have

been

coming

greater

year.

Mortgage

lower

rate

debt,

securi¬

along
than

last

despite

housing starts this
year than last, rose in the first
half by an only slightly smaller
amount than last year—$7.8 bil¬
lion this year against $8.3
biljion
last year.
in which

Even

consumer

credit,

many people believed
repayments this year would overtake extensions, has continued to
grow.

has

$2.8

Through July the increase
$0.9 billion, which of

been

course

much smaller

billion

the

than

same

the

period

last year.
So it hardly can be argued that
has
been

credit

^*A~taik

any

offer to sell

nor a

solicitation of an offer to buy

of these securities. The offering is made on&by the Prospectus.

now
—

en°u.^. so that at last over-all
restrictive
monetary policy grad¬

First, it explains in a measure
why the charge of ineffectiveness
foundation.

1956

$5,000,000

ually is beginning to be felt. There
are two aspects to
this.

some

„

October 24,

NEW ISSUE

Temco Aircraft

Corporation

As has been

quantities of very shortterm government securities they
are to a very large extent
inde¬
pendent, and immune to Federal
Reserve System control.
If they
cannot
sell the
securities, they
have
only to wait a few days,
weeks or months, and the Treas¬
ury then will provide them with
cash. Now, at least with respect
to banks, this is no longer the

"unavailable,"

b^Mr. Van Cleav. before «b.

Middlesex-Somerset-Union Bankers' Associaticn, Martinsville, n. J., Oct. 17, 1956.

5% % Convertible Subordinated Debentures, due 1971

large

Price

Dated October

100% and Accrued Interest

Due October

1,1956

Copies of the Prospectus may be obtained only from such of the several

1,1971

underwriters,

including the undersigned, in States in which such underwriter is qualified to act

condition.

as a

dealer in securities and in which the Prospectus may

legally be distributed.

Danger in Reduced Liquidity
Doubtful-

nize.

Keith Reed and Company

A. C. Allyn and Company

Incorporated

bal¬

growing

Corporate debt

even

This advertisement is neither

to this is the condi¬

Second, this matter®of reduced
ance—its $12.5 billion cash sur¬
liquidity now is pointed to as a
plus in the first half will not be ■danger stemming from present
nearly offset by the deficit in the and recent policy—a danger which
spepnd—but State and local gov¬ I confess I am unable to recog¬

ties

these

The Federal Gov¬

ernment has been

strongly.

None

below the all-time February high

tion of super-liquidity with which
the economy entered the postwar

has

government

securities holdings.
The result has been

cause.

minding that bank loans are be¬
ing made at the expense of in¬
vestments.
Loan portfolios have
been going up without significant
interruption since the third quar¬
ter 6f 1954; their rise has been
accompanied almost precisely by
an

the

with

ly understood even yet, and we
As reported by the SEC, their cash forms of "inflation" would be pos¬ here in this
group can do much to
holdings have held about level sible in the long run without in¬
help
widen
an,
understanding
during recent years. Their govern- flation of the money supply. In which will make. their accept^
ment holdings have been reduced the short run they can take place
Continued on page 30
through acceleration in the turn¬

spending.

all the new loans often pointed out—•particularly by
that banks are making, and all the the critics of over-all restraint—
new securities that are being ab¬
when banks and businesses hold
Now,

significant:istoinkage to liquidity

Eastman Dillon, Union Securities &

Kidder, Peabody & Co.

Co.

Incorporated

v
,

Merrill Lynch, Pierce, Fenner

& Beane Smith, Barney & Co. White, Weld & Co.

Bear, Stearns & Co.

The very fact that

liquidity
has been so high as to make the
economy
impervious to central
bank operations for so long a time
is, it seems to me, a powerful in¬
dicator of how excessive—how far

normal

above

needs—the

previ¬

Emanuel, Deetjen & Co. The First Cleveland

Corporation Goodbody & Company

Ira

Hay den, Stone & Co.

Francis I. duPont & Co.

Bache & Co.

Johnston, Lemon & Co.

Haupt & Co.

Loewi & Co.
Incorporated

The Robinson-Humphrey Company, Inc.

Rauscher, Pierce & Co., Inc.

state of liquidity was.

ous

Moreover, though cash holdings
of persons and business have not

much, there has been
growth in every recent year,
there will be some growth
this year. In the four years ended

Julien Collins & Company

Bacon, Whipple & Co.

Cruttenden & Co.

Rotan, Mosle & Co.

Prescott, Shepard & Co., Inc.

grown very

some

just

December

last

crease

still

was

are

average

Straus, Blosser & McDowell

&bout 3.4%!

some

savings

the market, and
$57 billion or sc

bonds

which

can

Garrett-Bromfield & Co.

Hallowell, Sulzberger & Co.

Howard,Weil, Labouisse, Friedrichs and Company
Sanders & Company

Johnson, Lane, Space and Co., Inc.

Saunders, Stiver & Co.

converted into cash on little or,^

notice.

Fridley, Hess & Frederking

There is

amount

Cunningham, Schmertz & Co., Inc.

Clayton Securities Corporation

in¬

government securities

outstanding
there

the

tremendous

short-term

Scott, Horner & Mason, Inc.

The real change that fia..

taken place is that it is no longer

Garrett &

Company

J. C. Wheat & Co.

The Commercial and Financial Chronicle
10

details

By CAROL JOAN RAYNOR

Co., New York City

the

growth and recognition of N. Y. Society

The accelerated

|
.

both

and

a cause

Ham C. Durant and others in the

Lighting, Texas Company, Thomas

markets

Perhaps

has

believe there

of corporate

management's
toward the in¬

vesting public.
A
generation
ago
stock¬
little

noth¬

Carol Joan Raynor

developments in their companies' doings; today enlightened
executives eagerly welcome every
stockholders

well

—

; i...

fact

The

centers.

that

the

rapid de-

velopment of the profession of security analysis is not simply a
coincidence.
Closer
cooperation
and understanding between man-

corporations and

agers of leading
trained
security

analysts

acting
owning
stocks and bonds has proved constructive for all concerned.
as

advisors

little

all

-virtually

investors

wonaer

then

executives

that

respond

T/illingly to invitations to address

regular forums and to participate
in periodic conventions that bring

iagether hundreds of analysts intent on
becoming better ac-

with

quainted
Individual

prospects

the

companies.

The

for
New

York

Society has pioneered the
practice of holding regular lunch-'
con
meetings at which top corporate

representatives

dustries

are

invited

in all into

present

their stories and to answer perti-

Occasional
reheld in New

nent
questions.
jnonal meetings

York

which

are

elaborate

confer-

prepared and at which
i nalysts
from many other cities
ire present.
The
Society's
fourth
eastern
are

cnces

invited

friends

for

top

corporate

manage-

inent, including the presidents of
Aluminum
Cerro

of America,
National Lead,

Company

Pasco,

American Gas & Electric and Conf;olidated
and
cuss

Edison.

construction
and

Other financial

specialists will distopics such as atomic energy,

industry

their

a n

practical

transportation

relationships
to investments.
In addition, field
trips
have • been
arranged
for
groups of analysts to visit several
companies having facilities in or

the

know

The'. Security

stock

Analysts

the
of

mar¬

and

now

the

profession

nancial

actively cant

assumed;

the

first

Broad

o'clock

•

get

ingredients, lithium hyThey have
already
expanded their manufacturing facili¬

Federation of Fi-

Analysts

Societies.

the

1937,

Federation-

the Society restricts

Schwartz's
the

dride.

For-

?ies

-held

were

Society played
part in its forma¬

The

period

since

the

end

World War II has marked

major

phase

Funston,

it dif¬

growth.

President

describe

formal dinner meetings

Schwartz's

Restaurant.

lion

Genial

sizable saving in lubricant con-

cerns.

witness
when

Ward

day.

numerous

the

smaller

around

con-

last

elected

established

Schwartz's

that

has

not

new

sons

achievement and often
the result of a personal friendship

of Union

between the executive and

velopments

topic

in-

and

dividual analyst.

material

reasoned

which

base

One

Wall Street

corporate

their

men

attempts

management

fruitful than

other

events

which records

are

that

•

the Future."

his

associates

had

along an experimental
pair of stockings which had come
out of the laboratory and which
he demonstrated as probably the
most expensive ever produced.
A combination of circumstances

beginning .around
1941-42
gave
the
Society a series of "lifts"
which provided
impetus for its

individuals,

^^De¬
Field

brought

of history for
sketchy, actual

and

Jexpansion. Stimulated by periodic

;

membership
was

drives,

the

Society
gains

able to show substantial

attractiveness

reflected

appreciated from $5 per share in
1953 to a high 0f $40 in 1955, and

dinner

before the lithium

said

have

industry is still in the early stage

use,

poration of America are unlimited,
in a very short time the stock has

daily luncheon meetSchwartz s
nas
grown
_

for peaceful

power

possibilities for Lithium Cor-

the

bomb

the development of the

with

and

ex-

of its

infancy, and I see no reason

why

the

Ljttrium
(

forums,
have

meetings,

been

interesting

Davidson

reach

would

for

toward the introduction of lithium

now

held

question raised
meeting
was
whether
nylon or Union Carbide^
vinyon would be the successful
synthetic medium for hosiery. Dr.

analytical

group,

Possibilities

"Latest

Plastic

the

en-

into their manufacturing processes;

tremendous

been

actively

research work directed

material

These and other reaall

becoming

are

gaged

investors

tremendously.
Special
management

duPont's

younger

was

the

have

this

opinion was
difficult, if not impossible.
In fact, the paucity of information available to practicing security analysts was a major reason
for organization of the New York
Society.
It was felt by several
a

firms

makes, the/deci-

the

issues.

ings

Carbide & Carbon. The

discussed

erable

changed attitude toward
security analysts. The popularity

with reticent policies of the past, Richard B. Jones, who was then
In the 1920s and 1930s, about I President of the Society, states
the only way to pry any informa- "calmly - that admission for mem¬
tion out of managements was to bers was 75 cents, including din¬
be an "insider" or a friend of an ner, if paid in advance and $1 if
at
the
door!
The
guest
officer.
a
corporation paid
Getting
executive to address a small group speaker at that meeting in 1939
comprising the NYSSA in the first was Dr. -Joseph George Davidson,
few years
of its existence was in charge of the plastics.jdivision
an

who

company's
it is

program

interesting to note that a considnumber of large industrial

securi-

types. The post-war period
a

the

research

fine

own

vastly

of course, that
earlier years did not witness the
appearance - of some very timely
guest
speakers.
They did,
and
mean,

really

in institutional

individual

and President spoke, he set ,a„
precedent, for Montgomery Ward
had
belonged
to
a
dwindling
among
them
was
the
groupof corporations still un- notable
Supper
Meeting
at
disposed to cooperate with secu- Buffet
Fraunces Tavern on July 11, 1939.
This
rity analysts.
happy circumstance was only another ex-. The circular for that meeting
ample of the striking
contrast which has been preserved by Mr.

addition

witnessed

6ion

began to make real progress. This
does

addition

have

pansion by corporations. The security analyst is most often" the

until

Chairman

Board

increase

so.

participation

of all

timers

March

the

head
of. Montgomery,
was the guest speaker of the.
when Mr. John A. Barr, re-

cently

other.

Again, if the memories of oldserve correctly, it v/as not
after
the
Society became

interesting example,
luncheon

125

stock,

own

number

lubricatiori

sumption and reduced the number
of breakdowns for change of bearings. Lithium-based lubricants are
used under conditions of heat,
speed, shock loads and water,

through ownership of insurance
policies of one sort or an-

is much different from to¬
when attendance averages

day

hapoened

company

P°ints 111 the mi" an" found that
they could reduce the number of
lubricants used from 17 to less
thari 10 types. The use of this
type
lubricant facilitates a con-

ties

—

course,

greater

indirect

venerable

General Electric, BethleSteel,* Sears, Roebuck, etc.,

individuals

much

Henry Schwartz proprietor of that

repre-

has

steel

One

Ihe

3>°P°x

New

security analysis since 1946. First,
not only do more than eight mil-

Lawyers Club, finally moving to

what

400%,

tested lithium-based lubricants in

Keith

the

„

pounds, compared to 244 million
pounds in 1955, an increase of

over

third

The. production of lithium-based
lubricants in 1951 was 54 million

York

tion.

different locales, including the
T.
& -T.« Restaurant and
the

hem

pother
of the fast
^lds forA llt*lum Is ,?Jubn?nt!;

several" member*

and

New

important

were younger

who sometimes found

Motors,
weu

Corporation expects to
substantial contract for one

the

institution, in looking
back .remembers
that
at
first
of
there
would
be 10-15 members at
sucb industrial giants as American"
an
average meeting. This, of
Telephone & Telegraph, General

DvhI

Lithium

to persuade senior analysts; York Stock Exchange, said a few
join. At one point some senior years ago that the growth of
m,embers joined when the Society financial
analysts
into influenprofessions
has
been
both
opened the Luncheon Club in a tigl
effect
of
the
private dining room of Oscar's a cause and an
Old Delmonico in 1940.
broadening base of security ownership. Mr. Funston's reference
Following Oscar's, the group'
is,
perhaps,
the
best
way
to
held informal luncheon meetings

*and

of the week,

top level executives
senting American industry

V.alpj* -19A

A"JUiJKv

appeared.

pQr there, in an unending stream,
come

—?—-

interests

whose

Street

day

any

—*—7

ficult

companies. For proof, one need
only peak in at the third floor
dining room of Schwartz's Reson

perfect
to the

dear

tation of the National Federation

associates. ,;,By

new

its very early days
men

ear^-is eagerly sought by leading

taurant

——

a group

what

where—a dynamic growth situation. '
Y
"

prices.

January, 1945, the Analysis
a
quarterly devoted to

advancement

of the National

members

ad¬
of the
existing membership. In addition-,
entrance requirements have been
raised.
Nevertheless, old-time
member
James
Hughes
recalls
that the majority of analysts in

But

"keepers of the statistical

hearts of Security Analysts every-'

rea-

Society has been

example
-

Journal,

missions each year to 10%

Indeed, in those
regional convention will be held days of uninformative annual re] 'o v.
8
in
the
Waldorf-Astoria ports and widespread negative or
Hotel. The program for the two-, indifferent
management - stockday affair includes an impressive holder attitudes, getting any kind
rrray

immediately

vassed

and

T?day the N>Y.S.S.A. has the

managements have come to see
the advantage of cultivating
•wholesome stockholder
relations

with

media.

(those

distinction of being

reversal iji policy
has coincided
closely with *\the
dramatic growth of the New York
Society of Security Analysts and
similar organizations in important
This striking

concurrently

or¬

seldom used term on Wall
and
even
"statisticians'

well

rise

1400% in 20 years, truly, the New

York

now

manuals") were often regarded as
anything but experts in analysis,

the

toward

progress

defined goals.

business

one or more

societies

street

rose
from £31
April, 1942 to $55 billion at tjhe end of 1944. Accompanying
this
phenomenon
was
an
upsurge
in public, interest,

for the

capital

York

People wanted

the

The

December,

not

was

inform their fel-

opportunity to
of

score

value

New

York

to produce lithium metal and
1947, provided another stim-, its derivatives for high energy
roster con-;
tained 66 names and by the sum¬
H3us
the growing influence of fuels by approximately 80%.
mer
of
.
1939,
82
had
become the New York Society. The ormembers.
Times
have
meetings
for
the
changed ganizational
one
growmg

scarcely

always so.Twenty
years ago when the Society was
organized with an original mem¬
bership of some 20 men. "anai^s*"

porary

public

the

New

world, your Society is
obviously the leader in this most
important service to our
economy." *>f. '
In the sunshine of such praise,
and with. an expansion of over

April

Exchange

billion

almost

than 5,000

attractive investment

ing of contem-

low

ana¬

ganized. There are few financial,
banking and insurance
institu¬
tions, however, that do not employ
the services of the Security Ana¬
lyst in the continual search for

attitude

knew

are

analysts belonging to

that

holders

attend.
oldtimers
can

Many

all

been

Magazine,

listed

Stock

the capital

stock market picture
brighten. According to

stocks

that

markets.

point

come

—

;
* greater importance, and \>y^ontinue(i jTOm^page
of ideas' November, 1945, the membership,
analysts. of the Society was listed at 803.

securities

the

low

organizations

nearly working at that job.all day
lcng than
anyone
else
in
the
country.
By reason of the fact

publication, instituted when
objectives remain virtu¬ Charles Tatham, Jr. was President,
has been a most successful
ally unchanged today. Additions,
enterprise. It is now the property
to the original group of 20 began

will

country

ing transfor¬

among

securities

free economy. And

our

all

These

Laboratories.

thousand or

operation
kets.

lysts and guests from all over the

most outstand-

mation

Bell

the

Fortune

(4) The promotion of a proper

the New York area, including
Bethlehem Steel, International
Business Machines, Long Island

yesteryear, but
jirobably the

interchange

The

information

and

near

and

that

1942,

public understanding of the func¬
tion of security analysis and the

Edison

From

began

(2) The improvement of analyt¬

(3)

the

This, in fact, is the genius
you—of

masses.

num-

speakers

the^ value of member-

dition

sons

Many remarkable changes haye
taken place in Wall Street since
the days of Jesse Livermore, Wil-

Res¬

ical techniques.

•;

ship
in the Society increased,
Importantly contributing to the
expansion was the changing con¬

Establishment and mainte¬
of a high standard of pro¬

nance

into investments.

roaring. bull

mounted;

Manhattan.

fessional ethics.

of
new issues; serving as a forum to top industry heads at daily
luncheons during the business week; and the funneling of the
economy's lifeblood; i. e., the free flow ,of capital from savings
,

Commerce

downtown

caliber

and

ber

(1)

profession has been
effect of broadened stock ownership. Stresses

strategic role played by analysts in: deciding attractiveness

membership—by May, 1943,

members numbered 425. The

Oct. u4, 1937, Mr. Rich¬
ard C. Campbell,was elected 'first
president, and a formal .list of
the Society's" objectives was
adopted. These included:
Later,

Y. Stock Exchange

N. Y. S. S. A. Writer concurs with N.
President's observation that the influential

;

in its

the

are

Chamber

taurant

Security Analysts—now 2,200 strong—accompanied by willingness of business firms to make known more and more about
themselves as investment outlets, is set forth by Miss Raynor
in the course of describing the developing importance of the

in 1937

group

ActivitySecurity Analysts' Societies

Security Analyst, Bache &

formalizing of

the

shrouded in the
mists
of
time.
Early
members
interviewed
today
are
not en¬
tirely in agreement as to how
things got started. If we may rely
upon the Society's first year boox
from
1938-39, however, the or¬
ganization luncheon was held at

A Tfue Growth

.Thursday, October 25, 1956

(1750)

future appreciation of
Corporation should not

equai that of the past: The stock
in the Over-the-Counter

is4traded
j^Iarket

instituted, at which analysts
have
the
opportunity
to
meet
many
top executives instead of
just one or two, of large wellknown
companies
like
Cities

S. D. Fuller Admits

Service,
public

Steel

Re¬
Pacific.

Union

and

Other educational endeavors such
as

the recent series

the

Federal

various

of lectures
Bank

Reserve

at
on

Re¬
Soci¬
ety's preoccupation with keeping
its 2,200 members well-informed.
Perhaps the best testimonial to
the splendid achievement of the
NYSSA

the

one

brief

its

over

be found

may
as

Federal

aspects

operations, mark the

serve

"We

recent

meeting

before
as

you

this

on
an

prime importance to the
We

haye

long

capital
masses

from

the

event

of
free

our

the* savings

of
the

of the people into various

enterprises for the production

goods and services for those same

of * the

nership

the

firm,

nounced.

an¬
*

Mr. Davis

banking

joined the investment

organization

May

...

year.
Joins Jesse Wood
(Special to The Financial Chronicle)

WARRINGTON, Fla.-^James D.

has

MacWilliams, Jr.
Jesse

joined

staff

South

Barrancas Avenue.

Wood,

the
542

Jr.,
:

Joins Draper, Sears
(Special to The Financial Chronicle)

that
whole

flow

manager

trading department of S.D. Fuller
& Co., 39 Broadway, New York
City, has been admitted to part¬

company.

recognized

truly the lifeblood
economy

such

Partnership

Davis,

such

the opportunity to

regard

occasion

by Paul Kayser, Presi¬

Schwartz's:

appear

Martin

lifetime

comments

dent of El Paso Natural Gas Com¬
pany,

Davis to

Petroleum,

Phillips

BOSTON, Mass.
Doherty

has

—

joined

Dorothy A.

the

staff

Draper, Sears & Co., 50 Congress

Street, members of the New York
and

Boston

Stock

Exchanges.

Volume 184

Number 5580

The Commercial and Financial Chronicle

...

(1751)
from

Non-Postponable America's Role
In A Seething, Changing Woild
Based upon world-wide tour,
American businessmen

world

can

Bridgeport Brass head believes
longer put off their share of

leadership mantle fallen

•

great seething renaissance taken place in every continent and.
tremendous surge of backward peoples

public relations

almighty dollar,

that

Praises start of commendable

investments and enterprises
,,

...

Whether

want

not,

business.. Changes take place
laster than

...

function!

Iraq is right

the

favored

most

the

colo-

they

world.

are

John

dentally, their colored pictures
seen

based

and

legend
part of our

the

conditions that
oat

world.

new

Its

could well become

reserves

China.

.......

but

not

they

are

to¬

day.

cific,

freeuom, and

scenaed

*•

take you down

certain

street
H. W. Steinkraus

certain

most

It is

its

city,

streets

city, so
dark, nar¬

are

row, and congested.

But

here

American

brand

canned

delicacies

goods,

from

farm

other

Over

ranges.

for

the

British,

-models.

again.

once

little

goes

And here

who

comes

have

group,

flown

car!

•

of people

new

Vickers

used

;weeks

hours.

now

Where

matter

this?.

These

military outposts? Or

place

our

and

out

the

money
to spend, and
are
willing to spend it. A rich Bedouin
-chief, right off the desert, goes in

out with

w'th its population of only 6 million people an annual revenue of

million

year.

wealth;

They have
their own

they can pay
bills; they do not have to borrow.
of

Some

best

our

engineers

are

there, helping them develop
variety of projects. Two-thirds

over
a

of -all

the

oil

revenue

ear-

marked for national development,
/The money is dispersed by a gov-

erning
.

board

which

sits

one

American

adviser, and one British.
Already two large dams have been
completed

the Tigris River, and

another is nearing completion.

Imagine
•An
the
.

Gas

the

address

Annual

changes

Mr. Steinkraus

Convention

Association,

that

Atlantic

the

will
before

American

City,

1956.

Oct.

Here

are

•

their

know

they have
all

$2,250

Manchuria.

Pekin
with

"made-in-China"

ma-

eral

Motors.

This

one

of Gen-

factory devel-

disturbing picture
the

some

u- s- A- Is the Norm

things

.Their plans are all long-range,
They claim, "By the year 2000 we

will

i£SS

march

toward

industrializa-

narison

—

«on^ W gan nmning

the

leading

the

equal

United

States

•

■

now

French

with

the

year,

continues ""at

will be
nese

United

States)

Wltn i e umiea oiaies.;

■

and

that

assuming

rate,

there

thousand million Chi¬

one

by 1980.

Today,

Continued

one

out of

page

■

...a

World Leader in Cosmetics

manganese,
And it has

water

power.

wneijj ine
uttered
'•

*7
<

^ ies an(* towns instead of the
.

•//,

•• *•

.„

soon be Published.
■
1 asked one of their researchers
what impressed him most in his

studies

far.

During the first eight months of 1956 Revlon led all companies in the sales of cosmetics.
What

the facts behind Region's rise in leadership?

are

He said, "The City

°f

Leopoldville, in- the Belgian
Congo (The city is so-named from
King. Leopold, the father of King

TZevltot

cen- •*

if ri5^
industrial growth, of the B^Sian Congo.) It looks like any

grown

^any wo
people own their
'2*7? bomes* They have just built
own>}university. There is no

sales, year after year since 1932,

steadily

months of 1956

they

—

for the

were

first, eight

almost triple the

TStCvloH'

has

adopted

policy. Since the stock
the

liberal

dividend

TZeofoft,
net income increased from

million in
the first

$1.4

1950 to $3.6 million in 1955. In

eight months of 1956, net income

reached $5.3 million.

introduced to

was

public late in 1955, each quarterly divi¬

dend has been increased

total sales of 1950.

mbdern American city, with sky:S?^ape^®, ne;w scbu°ls, hospitals,

sl<Jewalk cafes, and almost every
?! r asP^ of a-modern city,

have

substantially.

in the greatest year

pany's history, is launched
program

here and

of the

on an

overseas,

com¬

expansion

maintaining its

high standards of quality control, product
development, growth through research.

color u21"*
My friend told me that when
he arrived there, he took a taxi,
and

the

perfect

African

English,

American!

driver

"So

you

said,
are

detai'jd, up-to-date report

Revlon. If

you

free copy of the report, simply write
phone Reynolds & Co. at the address below. •
a

Tell me, what do your

speak such excellent English?"

said, "Oh, I went to London Uni¬
versity." "Where you born here,"
friend asked?

away,"

just published

would like to. receive

people think of Anthony Eden?",
They talked on, and my friend
asked, "Where did you learn to

We have

he said,

"Well, not far
"about 30 miles
'

•

First, a great unified industrial^industrial power." (Always there
drive, or as they put it, "a relen1> seems to be the inevitable corn-

regard

now producing
automobile, also her first

and

copper,

other metals that

textile factory

truck, modelled after

Chinese Industrial Drive

France

produces

Albert of Belgium, and is the

TV set.

The magic word is of course oil.
Oil is giving this small country

$200

world's

northw'est-^-

her first

they found out.

outside

knowledge

great part

Europe, India; and
added.

reserves

put

into

try' Wl11

stores'

comes

the

Government

000,000

States

They
choose
Africa, and that study, the most
complete ever made of this coun-

have

and

all

Chinese

chinery.- China is

words

Their

war.

Americans!"

what

the

want

labelled "War-mongerLast
year
the

cannon are

ing

first

don't

are usually shown on postpeaceful, while pictures of

Influence our nation* future the J
mos*' jnd about which we were ,
poorest
informed.

own

European
city, rebuilding from the ravages
of' war?
None
of
these; it is
ancient Baghdad, that sun-baked
city on the Tigris River, awakening to new life. The people who
crowd

the

are

this

world's

comprehensive study, of whatever
Part of the world would probably C":

Some
One

America?

United

Three„years ago the 20th Century Fund, of which I happen to
of be a trustee, decided to.make a

journey

mere

South

slow

the

China

*3usn.

Viscount turbo-prop pasplane, flying on a network
connecting " major
cities.
What

senger

the

re¬

bat a generation ago. Since then
40. milllon natives have left their "
^r^es to become-absorbed Jn in?ust.I!y' or agriculture,-and -to live '

Dutch

American

The

VThere

Jkosc famous, words,
Living£j?ne' presume, an<* where later
Jheodore Roosevelt went_on safari
*° ^unt' wil^ ammals.
hat ,was

wealth of natural

cuminem,"

American

and

refer

sb exPl°rer

machinery, and just beyond,
agencies, selling the latest

German,

they hold half

cop-

for

Our fathers knew Africa
mainly
as "the dark
continent," where the

other

there-is

sale

are

ever

covered
-:

of all the world's gold, 22%

great

countries, displays of air conditioners, TV sets, push-button kit-agency

"strategic," like
uranium, and bauxite.

along

many

progress

and

incredibly rich

no¬

names

yet unmeasured.

Western

55%

latest

our

supermarkets.

familiar

chen

all

modern

are

not unlike

some

American

with

big

many

shops,
tice

there

and

all

glance reveals something different

sources

with

second

slumbers.

Here is

land with

ancient

his

Africa.

you
in your books

read about

at school.

from

that

one

used to

These reporters

manganese,

tungsten

They
ers

country; they caught

industrial

Hanoi

supply.

on in
China t^Hav
~
on
in China
toda^
was
granted a rare (1953
°
permission this last spring.
duction,

But

national safety,

our

have

and

people

250%; coal, 60%; electricity, 100%; also construction of
Potential Africa
magazines, "Realitees," was al- 455 new factories, some with SoNow let us turn to another
part lowed to send Pierre and Renee viet
aid, and
top
priority for
of the world, where a vast counGosset, France's leading journal- transportation, forging an overtry is awakening like, a huge giant ists, to visit China and report, land link with the Soviet Union.

spe¬

let

morale of the people/

"V.

•

For C.

going
whatjs going

own

One

...

the

Progress and Hatred

oil world
has
fac
fac--what is

preservation of our

well.

as
.

«,-—«*

Ijjjj-'- used to exist,1 tor in the

finest

from

♦

bauxite, tin,

latter

only gripping scenes of human
interest, but those of great beauty

0f China and her closed ports shut
her off for 5,000 years from the

vital

of any

links

We talk of Russia's iron curtain

now one of

emerges

are

per,

not

—

often

the

some

make

Main mineral resources of
China

behind the scenes, on how the
Chinese people really live. Inci-

great deal of good;

will

Moscow.,,

underdeveloped Western World, until 1842 when
are
able to. countries in the world. So
Bagh- her ports were opened up, and
realize, so our dad, remote Baghdad
the Bagh- world trade followed.
Today, that
opinions
are
dad of maigic carpets and poetry
curtain, so briefly lifted, has detoo

Already they have a link from
Pekin to Siberia. Three new lines

their report* "A new world is b&~opment is in
Manchuria, and also
^ng korn jn china." They go on includes a housing project for
to show how ancient, traditional workers,
department stores, parks,
today.
For centuries. China had Asia is
dying, and'Marxism is theatres,* and a technical school
an
iron curtain.- The Great Wall
becoming
entrenched.
It
is
m
for 1,000 apprentices,

ties

China

abroad.

rest

fi..

take place when .heir vast irrigation projects for the Tigris and
the
Euphrates
valley
begin
to

what happens abroad has a direct
effect on us, and perhaps even our
own

the

loosening,

are

the world?

abroad and, in urging this extension, includes greater need for

_IT,

They also sent along Jean-Philippe

.Charbonnier, well known photog-

May I give you one more illus- country, and also collectivization,
tration,* in still ^another part of hygiene, 'model homes, and the

made

contacts

second, it is dying." This is a new
Africa emerging in our time.

bigger bombs.

tribal

things about colonialism in Africa:

bigger and

want

the

Africa

first, it did

Urges 100% better world
to dispel false views that our only

program

the

concern

"world cannot stand another war."

A jump

Gunther put it simply and clearly
.when he said, "There are just two

wanting modern civilization.
Mr. Steinkraus sees emphasis in this new role as not
one of
money being needed hut one to retain peace, for the

ail

nialism

shoulders in view of

our

.r,~'A

from tribal rapher.
living to modern civilization, not
Their keenly analytical report,
in two generations, or
three, or recently published, -is the first
four, but in one generation. In- large-scale appraisal of the imdustrially, Leopoldville is mush- pact of Communism on China's
rooming; business is booming. But 600,000,000 people. They not
only
no^ wonder it has social and po- saw the front of the Chinese Relitical problems.
public officially, but they reported

By HERMAN W. STEINKRAUS*

My father is

•:

'Think of it!

President and Chairman of the Board, Bridgeport Brass Co,- :

here.

Reynolds & Co., 120 Broadway, New York 5, N. Y.

Reynolds & Co.
Members New York Stock

Exchange

39 Offices from Coast to Coast

Attention: Richard S. Graham
Please send
NAME

your new report on

Revlon.

—

STREET

CITY

—

_ZONE_

-STATE.

—FO

The Commercial and Financial Chronicle

despite the increase in gold and
dollar holdings, the reserves of
some
countries are still inade¬

World Economy Stronger, but
Inflation Must Be Watched

quate.

export earnings.
.For

members of the International Monetary Fund have
been
primarily concerned with
problems of
many

and

recovery.

The

from

two-thirds

tion

adversely
war

Rooth

the same

was

n o

maintain

b 1

stand ard of

investment

but the solution

then

account

t i-m

value

business.

has

wants

•

able

___.-_i.

after

ever

since

other

party is

money

was

xu-.

exchange rates, but
orderly changes in parities
when they become necessary.
The Fund began exchange oper¬
ations very early in the recon¬

Executive
Directors were aware that this inThe

ripnr^rfatp'nn'

tPnHpnrv* tn

development

not

met

from abroad
adequate for urgent re¬
quirements. Such a policy is selfdestructive. It destroys the incentive to
save
and the ability to
attract
foreign capital, both of
which ultimately depend upon the

adoption

money

nant

tional

resources

construction

addi¬

The

finance.

war

for re¬
acquired

necessary

were

small compared

with
eitheri the problems to be met or
the aid provided by the United
was

States

countries.

other

and

The

Fund's

help came, however, at an
opportune time, after reserves had
been drawn down to very loy/ lev¬

through the large excess of im¬
ports in the early postwar years.
The balance of payments deficits els and before aid on a massive
that this entailed were met by scale became available through the
drawing down reserves and by aid Marshall Plari in 1948 and later
from the United States and other

in other forms.

countries.

While

possible to set
any precise time for the comple¬
tion of reconstruction, a signifi¬
cant change in the world economic
VIA

tA x

situation

viiV

was

Recovery and Development

not

policies

that

with

disaster

nation —mar&

every

capital

when

valiiP.

the

practically

Germany
to

went

zero

1923, spelling the end of inflation
for

create

• •

vi iv*

vvviivni*v

evident by 1950. By

war

trade
j

mere

could

not

regarded

ment in the forefront of their eco¬

and

many
more

nomic

programs.
In most of Eu¬
both production and trade
greater than before the war.

rope
were

was

difficult

longer to restore the
countries
ries

the

countries,

Far

took

and

economy

East.
Fast,

In
in

production

rarip7r7Ttill"'h^aw
"thp
rade
are still
below «tne

and

but this deficiency^ is berapidly
remedied.
Even m
r
"

mg
°

• J

bve warfare

countries outside the

areas

—

ac-

Latin

America,
the attempt to offset quickly the
as in

the war
investment deficiencies/of
deficiencies/&rthe
war

period resulted
large payments

inflation

tojenable the industrial

production,

coun¬

tries to put their economies on

self-sustaining
tablish

basis

better

and

balanced

es¬

pay¬

ments position.

For many under¬
developed countries, the b a s ijc
problem was even more difficult.
For them

the

large increase in out¬

Drovidp

cavinfs

Tn this task

economv

dpvpInr»

thP

nf rpnnv#W

^onomy^ in this task of recovery
a|vewpment, great Progress
eaL imposea
imSoTed bv
SooradiXarand
_tdPs
oy sporaaic
war and

exnTndi'tures,V" """

Germany.

industrial

come the adverse effects on. pro-

countries

duction which had

have

over-

been left

the war. In many underdeveloped

covery

trade

many

and

the

countries.

re¬

The

important objective of the
value of world trade has increased
during the reconstruction
period was to minimize exchange by about 60% since 1$>0. For sev¬
disorders in a world of large pay¬ eral years, the payments of the
rest of the world with the United
ments deficits, inconvertible cur¬
Fund

rencies,
In

the

and
field

the Fund

persistent

inflation.

was

monetary policy,
among the first to

present the payments problem as
one
aspect of the economic dis•Statement of Mr. Rooth

in presenting

the

lt£% ^th^Biar/o^&wrnor?"of

rectors
■

Fund?

the

KSfdSf

slnre iqSPth^nM ,53
sprvpt;
VeS

nf'th*
Of
the

rest

serves oi tne resi
,1aY? lncreased by
billion.

should

o
the

world
<t.1A

xnan

$iu

excep-

longer those arising from
the
destruction
and
disruption
caused
by the war.
The world
economy
is stronger and better
tions,

balanced

now

before the

war.

vironment

can

than

the

One

created

reduced,

expenditure

Inflation

cause

of inflation is

much

borne

U" S' Governrnent financing

not

party

one

remain

good

while

the^

anxious

ditions,

that there have

When

may

^power of
decreased too

inflation

Credit

can

from

things:
X
and/or

CIXXvX/

tion's

tional

confidence.

Inflation

combination

has

inter¬

been

bank

creates

It is not
that makes
people lose confidence; it is how

th% value

deep and

year> there was a pause in the
growth ur
of umustiwi
industrial production
yiuuutuuu
,

deposits.

production goes. If production
keeps up with debt, there is no
harm,
except
psychologically.
Lack

the danger of

re-

two

Oversupply of money
O
U
Xj
\J J.
tiiv
XJICX
supply
of
the
nagoods
and
services. Nadebt
figures
in
that
it

rupted for brief periods from time

time,

U'i 1
1
under

low

expansion of produc¬

trade

and

gen¬

developed countries.
While-the

production

means

money

su^icion. .uu^iuu
Inflation

that

under

is always ah
»

attempt to escape heavy burdens;
core of the
principal
force
pxniuxptii
wn-c

—debt is often the
The
xxie

problem.
prooiem.

^ ^ United gtates and Canada makin for
ke inflation is a
and in nearly aU countries in huge expanded stream of income
Western Europe. There
has been -purchasing power-which beats
nf fhncn
n0

recession in any of these coun-

tries, and in several, the expansion

diminished supply
civilian goods and services.
against

Effect

of Inflation

mean

little. The great,

financial need today* is
educational
campaign

about

combined,

national

both

teach
the
honest truth

Voter the

INFLATION.

With Shearson, Hammill
Shearson, Hammill & Co.,
bers

of the

and

New York

mem*

Stock Ex-

and'"other

change

exchanci

commodUv

LunceTt^appointment"cjf
registered

thl

reoresenta-

lollowlng.registered
representatives in New York.
Edwin
Staf¬
ford

Morgan,

the

lack

how far the debt goes

tion

except

and Noel J.
Inflation

sults

it,

group.
of

govern-;

the

give us anything
the same kind of
money! Printed promises by any

for

f0n0wing

Kinds

all of our!
its face a

but

not

the
dollar has
much, injury has been done to
the investors and creditors as a

tary

industrial

W. Edward Tague
Wesley will be located

firm's

office

Wall

Street, and Albert E. Any, Harold
I.
Baker, Henry M. Mason and
James A. Saddy will work out of
the company's office at 115 Broad¬
way.

Form

Reed &

Sloan

Investment

Company

DALLAS, Tex.—Reed and Sloan
Investment

with

Co.

has

405

offices

engage

Officers

been

formed

Adolphus to
securities business.

Myron Hauser, Presi¬
Bentley R. Murdock, VicePresident; Thresher A. Rippey III,
are

dent;

Secretary-Treasurer-

and

Georee

George
A. Kent, Jr., Assistantand
Secretary,
All

were

formerlv
formerly associated with

Reed & Sloan Co

C°'

With King Merritt
(Special to The Financial Chronicle)

BOSTON, Mass.—Meyer K. Ep¬
stein is now with King Merritt &
Co., Inc., Chamber of Commerce
Building.

foeen affected

The tragedy of inflation is the
by the slowing down
0f industrial production.
In fact,, losV'ofTurchasing'^ower'on the
the expansion of world trade has part of those who have been the
been an important element of eco- most thrifty in saving money and
n6mic strength during recent buildine up assets and income for

fd^rotection in various
and the tendency toward

pressure

forms,
free
was

trade
some

not

strong

years ago.

rainy day. These are the holders

bonds

the

international payments is

and

holders

preferred

stocks,

insurance

annui-

With Merrill Lynch
(Special to The Financial Chronicle)

CLEVELAND, Ohio
M.

Cook

istic

inflation

for

taaCehine°n
The
imagine,
ine

that

the

take

most

aangeroub

now

—

with

Thomas
Merrill

Joins Suburban Sees.

time

hold

Lynch, Pierce, Fenner & Beane,
216 Superior Avenue, Northeast.

ties, and those who have amassed
large cash assets. It is character¬
required

The effect of economic fluctua¬
tions

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Albert H.

Thomas has become ^"ated with
q11vt1irviqn

Camwitiae

/-•«

too

perYoHs i^ualiy"when"thegen- Stgur^Secqrittes Co., 732 East

rials exporting countries. Gener- eral public has been lulled into a
ally speaking, changes in indus- false sense of security. It must be
npcnmoanipH
romomhorpfl
InHnv
have
trial production are accompanied remembered that today we have
wp

arp

changes in the volume of raw

in. materials exports

jiptcontinue iftdefipitelyifaR^,jkljat

purchasing

the

and

production will probably

great

fluctuations in the value of money
in practically every country.

satisfactory rate in the
countries and may he
accelerated in many of the less

grow

been

by confidence; and mone¬
inflation can be caused by

pay,

will

American

show

has

money

promise to
ment

succeed

Practically

parties

in the quantity
circulation relative

erated

lastv genEven under present conhopes
of the
v Xr
"

yond
the
w*
v* *

paper

f.an

party

so,

greater increase

en¬

eco-

doing

years

peaceful

nomic growth and development in
the next decade may be far be-

mind, however, that extraordinary" prices.

—

Washington

with few

are,

are

countries, the economy has begun
to acquire a^m omentum that months, although it is regrettable
should facilitate future growth, that in many countries there has
There has also been a striking re- recently be^i increasing group
serves

Fund

pbllticdl

government
What
•

In the past few years, produc- 0f industrial production has been
tion has expanded rapidly. Most resumed.
World trade has not

revival of flexible monetary pol-

lcy.

of. the

depression has so far
~
been averted. At the end of last

moderation of investment and the

icy, inflationary pressures were
greatly /educed. Countries found
.that they could deal with their
payments difficulties as ordinary
economic problems that could be
-met through fiscal and credit pol-

members

confronted

£}t
TO necessary to mamtam prolong'ed
minimum consumption standards

and 4arSe ae*ense expenditures.

deficit^ With the

restoration

sary

prewar, t t

./!<
level;

which

satisfactory. A great expansion in eration.

Production arm exports was neces-

time

changes that have taken
piade during Tthe last ten years',
She economic problems with

countries were
placing develop¬

that

the vast

arms

attainment of the pre¬
volume of production
and

The

election.;

see

resist the temptation to tendencV'to depreciate'4m value,
with bank anc* « has at some time or other

finance
flow

1949

would

the

all men1

one

good business before election.with payments difficulties as they
Roger W. Babson
invented, —
emerge. The Fund has made spe- :
Good Money!
>
;
j
and,
in
fact,
cial efforts to encourage a policy
The Mexican legislator was-hot!
of development with stability. Al-;®Vfn* before that tune, no matter
. _
^
o
_
though aware of"5 the need for
commodity, was used as the far off in wanting to annul Gressound financial policies, manyjun-• hiedium of exchange
tobacco or ham's Law. We would like to acderdeveloped countries seemiun- wives. ..-Money•.•has always had ■&" com^sh it iitilje U. S., but' no

are

intensified by the easy
policy which was a rem¬

Politically,

business

until

lem

that

willing to work. The problem
today is the effect of inflation on

money in
resource^ necessary for recon- volved risks; but they believed confidence,
to the increase in the volume of
structiorf The attempt to meet that it was necessary for the Fund
Current Economic Problems
such
goods
and services. This forces
expectations of
increased to assume these risks. The nearly
price level upwards. Price
This brief survey of the .postwar the
consumption and investment in- $800 million of exchange resources
evitably led to inflationary pres¬ provided^ by the Fund from 1947 period. is intended to emphasize indexes for a period of - years

sures,

fact

prob¬

;The question
been

the

millionaires

were'

suspended

for

regards the value

The.; late Senator Long's
campaign slogan, "Every Man A
Millionaire," did not- take into

sug-

gested \ that

opinions
money.

not
not

annulled,

he
:

credit when their own.savings and

period.

was

)uia
could

and

0f
our
major problems at £ the
present time. There are numerous

told

natural 1

stand for rigid

struction

that

be pres¬

and on other occasioiis, the Fund
has made it clear that it does not

living and at
'time to provide the real

;

Inflation and Government \ /
Ever since the inception of4our

Mexico

W h.e n

The Fund has always placed
great stress on the role of a flex--"
ible financial policy in dealing

had

;°,j.

apocryphal

■

annul! e a.

order

for

adequate

to 1er
Ivar

According" to an
story,, a* .legislator

found in miiation.

taken place in the world economy
during and after the war. On this

coun-

affected
the

atproduc-

paper

pay

•

these basic problems cannot be

de-

the far-reaching changes that

fact

the

trade

world

different

continue

consumption,

valued their currencies to reflect

a r ose

In September
accounting
for

our

"but the government will not;
anything for it> except the same kind of money."
v

contains promise to

mopey

may

for

sure

truth about inflation " and that

-voter the liohest

give

inflow from other

that

-There

countries

1949,

diffi¬

nomic

culties

build

defining inflation and the effects of inflation, Mr. Bab-

tjie early postwar
The danger now is not! one
.''.of runaway inflation, but of a per¬
sistent rise in prices and costs.

than

conclude* 4hat both parties should "teach the American

son

year?.

ternational balance.

early

postwar eco¬

tries

,from

program
to ^strengthen internalional payments and to restore in-

reconstruction

inflation

order that grows out of inflation,
As the period of reconstruction
was drawing to an end, our Annual Report for 1949 discussed the
need for devaluation as part of a

great part of the past ten

years,

After

Nevertheless, the-problem of

ity.

'moved that Gresham s Law..(that-national government, money and
wages has been ex- -bad
money
drives ^out^ 8;ats~v>alue has—been a concern of
mo ney)
increase in productiv~
~"
bje various .adpnmsfrations. It is* one';

increase -in

of high

gold and foreign exchange reserves at times

# «*

In many countries, the.

ceeding the

exceeding increases in productivity, great-

est danger is of persistent rise in prices and costs rather
of runaway inflation. Strongly urges small countries

capital

countries.

intensified^by easy money policies; but that
developed in recent years, with world economy now better balanced than in prewar years. Asserts danger
of inflation has been minimized but not entirely removed, and

improvement in
has been the re¬
policies that have

and the

tionary pressures,
T;* great change has

* *

By ROGER W. BABSON

world, government and* private
expenditures on investment are
still in excess of their own savings

the wcrk of the International Monetary
Fund, notes that, attempts to meet early postwar expectations
of increased consumption and investment led to strong infla¬
Mr. Roothf di*cussing

that with wage rises

11 #

minimized
but not
entirely .re-;
moved the danger of inflation. In :
some countries in all parts of the -

Board,

the

Much

sult of financial

Managing Director &nd Chairman'of the Executive
International Monetary. Fund

Inflalion and Promises to Pay

■

world payments

ROOTH*

By IVAR

Thursday, October 25, 1956

...

(1752)

and

their

For countries whose for-

52-cent dollar arid that the cost

is still going up. It is
possible that within the

living

quite

^uoln s,treet"
*•

With fpnlmAnfal

*Vltn v*Ontineiltal

oCCS.

(Special to The Financial Chronicle)

MILWAUKEE, Wis.—Mrs. Edna

R. Pate has joined the staff of The

eign exchange receipts depend next 10 years prices may be much Continental Securities Corpora;
Continued on page '.34 ' higher than they are today. •
tion, 207 East Michigan Ayenue;.
.

Number 5580

Volume 184

...

The Commercial and Financial Chronicle

(1753)

added to the already

Examples of Unnecessary

Federal Power Commissioner

—

Industry
un-

litigation arising from duplication of intervenors to

necessary

dispute and from needless review petitions
and advises

cause

cite

facts. Mr. Kuykendall praises Hinshaw amendment for money and work saved without detriment to public
interest; supports efforts to enact uniform gas transmission

:
~

safety standards; and admits old questions as to what constijust and reasonable rates, and public convenience and
necessity, "are still with us... .
of

gas

industry

the

Federal

our
efficiency.
We are
meeting with considerable success

in this endeavor.
Sound

and

period

organizational

Many
have

doubtful

been

These, in

years.

been

in :

great

last two

there
shifting and
but

the

changing of personnel and- re-:
drafting of organizational charts/.
The work still has to be done by
the efforts of human beings., Or¬
ganizational changes do not create

industry
been

has

Permit
cite

few

statistics

mere

assured that there

pleted,
K.

Com-

occurred be¬

which have

year and ends on June 30
following year. Each fiscal
is designated by the year in

one

which it ends.

The

applications for

public convenience

Commission
with

ture.

78,000
In

1953

distrib¬

copies of those docu¬
in 1956

1953,
visited

persons

daily average

issued 809,-

of 45
refer¬

average

public

our

daily.

ence,, room

was

the

1956,

In
75.

The Federal Power Commission
is

with

confronted

make

its

the

must

interest," while also stating

that it did not oppose the applica¬

was

Unlike

;

and

lines

clear

the
new

and

must

owned

Commission

business.

the

over

do.

can¬

It has

volume

work

Furthermore,

the

Commission cannot solve its prob¬
lems merely by hiring more em¬

ployees.
sonnel

scales

Very few qualified

are

available

paid

by the

despite

ernment,

the

been

taken

ernment

per¬

the salary

Federal

several, constructive

Gov¬

fact
steps

that
have

recently by the Gov¬

rectify this condition.
sustained and vigor¬
ous recruiting
program we have
been conducting during-, the last
Despite

two

the

have / only v 10%,
employees now than we had

years,

three years ago.

add

that

Perhaps I should
the Congress has been

most considerate

and

ing of this problem

understand¬

the

mission and has increased

propriations
two

fiscal

each

years

Com¬

our

ap¬

the Jast

assist

overcoming, so far as possible, our
shortage in personnel."
.

The

best

method

problem,, and

the

solving

first

our

should
be
employed under
conditions, is to endeavor to
perform more work, without re¬
any

the

quality

ity

*An

the

ganization

which

never

ways

intervene

to
and

remote

Nevertheless,
seek

titioned

ap¬

plies the first

company

The

purchase.

merely; denied, of

the

town ^pe¬

intervene

applicant

third

party

and / re¬

party

was

service.

supply gas to a
delivery to the

for

even though the third
unwilling to render the

petitioner,

The

Commission

such

grant

could

request under

Natural, Gas Act,

it denied

the petition.
In

still

other cases,

petitions to

intervene by customers

plicants

sup¬

have

petitions

proposed

petition

case,

quested the Commission to require

someday

competitor for the gas

neces¬
*

another

possibility that the
might

projects.

were

mers.

was

been

ap¬

customers

would

seem

Continued

course.

of the

followed

custo¬

that

page

'•AT?'

/■■J.

Central,of Georgia Equipment Trust, Series C
-

4%%

Equipment Trust Certificates

(Philadelphia Plan)

Y " Y' Y

;

mature

$28,000 semi-annually May \x 1957 to November 1, 1971, inclusive

;To be guaranteed

unconditionally as to payment of principal and dividends by endorsement
by Central of Georgia Railway Company. -

au¬

A: Priced to
■'

the

»■'

yield 4.00%

4.50%, according to maturity

6 T." ' "v.

■

Issuance and sale

;

■

•

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Copies of the Offering Circular may be obtained from the undersigned.

the

will

al¬

HALSEY, STUART & CO. INC.

improvement.
will continue to

for

improve the internal ad¬

ministration

and know

are on

facts

company because

company

also

sarily denied.

the

interest

public

concrete

petitions

and

There

come.

room

Sucn

intervene in the application of

pipeline

the

thani definite,

best
methods
In fact, that time

procedures

in all situations.

will

suffi¬

from

used

embryonic ideas would

not

another

the

Commission,
the

Appeals

in-

address hy Mr. Kuykendall before
American Gas Association, Atlantic

City, Oct. 15, 1956.

for

October 25, 1956.

right path.

Industry's

Assistance
At this

point, would you permit
point out some ways in

which you

try

in lightening our
bit, without any detri¬
your companies or your

little

ment

$2,640,000

members of the indus¬

assist

can

Minneapolis, St. Paul & Sault Ste. Marie

customers.
•

The

Natural

Gas

Act

the Commission to hold

requires

Railroad

hearing
on all applications for certificates
of public convenience and neces¬
sity. TKtg, Commission's rules pro¬
fdr'

vide

abridged

where there is

cases

the granting

hearing

4Vz %

siderable

(Philadelphia Plan)

saves

the staff

amount

mature

$88,000 semi-annually May 1, 1957 to November 1, 1971, inclusive

guaranteed unconditionally as to payment of par value and dividends by endorsement
y
•
Minneapolis; St. Paul & Sault Ste. Marie Railroad Company
; .

To be

con¬

time, and is
particularly beneficial to the ap¬
plicant; The facts of record in the
docket

constitute

the^

MATURITIES AND YIELDS

at the hearing, and the
applicant need not even appear in

Nov. 1957

-4.15

•

May 1958

If petitions to intervene in the
certificate; proceedings
are
filed

Nov. 1958

4.00%

May 1957

;

evidence

presented
person.;

Equipment Trust Certificates

of the certificate.

This procedure complies fdlly with
the mandatory requirement for a

hearing, yet

Equipment Trust, Series C

opposition

4.25.::,"

4.40

4.50%

4.45

1960

1961-71

a dispute/or elements/of un¬
certainty are thereby presented,

4.35%

1959
,

and

full forTbal

hearing is' then

re¬

;

quired, and the procedure for an
abridged
hearing
becomes
un¬

Issuance and sale of these-Certificates-art subject to authorization by the Interstate Commerce Commission.
The OJferiv^ Circularmar be obtained in any State in which this announcement iscirculatedfrom only
such of the undersigned and other dealers as may lawfully offer thest.&ee'urilies in such State. ' .
*

available.
In

cases

necessary,

limit

much
do

where interventions

the

highly

number

possible,

R. W. PRESSPRICH &,

HALSEY, STUART &. CO. INC.

CO. >

FREEMAN & COMPANY*

desirable
them

;

McMASTER HUTCHINSCN & CO.

pation of unnecessary parties.

October 22, 195o

INCOHFOWATEO

WM. E. POLLCCK &. CO., INC.

SHEARSON, HAMMILL & CO.

long

unwieldly due to the partici¬

THE ILLINOIS COMPANY

;
'

that hearings

not become unnecessarily

and

are

pro¬

ing their

for

concrete

,000

supervision,

indeed far

are

possible

method

that

ducing

ods.

been

the

'V-;

unending effort to simplify
meth¬

load

privately

many

not refuse

control

possible of

use

intelligence.

businesses,

petition

unnecessary

and responsibility,

cient but not excessive

Obviously,

well.

best

manpower-skills,

funds,

combined

have

certain

against

vene

workload

it is necessary for the Commission

there

which is not only tremendous, .but
also presents novel and perplex¬

ing problems

ob¬

proceedings to"pro-

Along with sound organization,

point where it could be said that
we
had established a perfect or¬

by 549%. In 1953 we is¬
sued
1,324 notices, orders, deci¬
sions, and opinions.
In 1956 we

000.

Yet, the

more,

creased

ments and

was

much

can

necessity increased by 667%.
The number of gas rate filings in¬

uted

stated

pipeline

posals of other companies, claim¬

petitioned

and improve procedures and

4.060.

;

petition

One pipeline company

second

do such changes sup¬

and

issued

could

case,

nor

thority

•

number of

certificates

that

existing customer petitioned to in¬

ply answers to difficult problems;
Nevertheless, a properly organized

Kuykendall

of the
year

tervene in the

given number of men, than
tween the fiscal years; 1953 and
dan a poorly organized
Commis1956.
Perhaps I should explain /Sion. We believe we are attaining
that a fiscal year in the Federal the advantages which are possible
Government commences on July 1 from a sound organizational struc¬
of

intervention

me
.

another

perpetual
motion
whereby the work flows smoothly
and continuously until it is com¬

in the Federal
Power

form

any

give you some
slight under-:
standing of the
changes with¬

mission

magic in

existing customer and

opinion, have, tion. —This

benefit,

the, history of

Let

jection to the proposal.

changes

in. the

made

and

eventful.

unneces¬

delay.
few examples:,

tect its

problems have
multiplied.
It
any

Organization

great amount of

ter with its

Commission's

Power

interest

existing customer of the ing, but the staff was able, even¬
pipeline.
The pipeline company tually,
to resolve
the
problem
had previously discussed the mat-, otherwise.

creasing

been
growth in the
and a period when

dynamic

claimed

some

"paper""

cases,

be"

companies,
with no gas, no pipeline, and no
market, have petitioned to inter¬

an:

was

The past three years have

Needless Intervenors

other

"would

One

tutes

times

Commission

granted petitions to intervene

because

im¬

the

cases

pipeline company filed an propriately set forth in a letter
application to, serve a new custo-: to the Commission. This petition
mer
in the" general service area almost necessitated a
formal hear¬
-

many

of the

trouble

sary

applications contain full and complete disclosure

of all pertinent

Other
In

petitioner, and yet, the pe¬
They accomplish nothing
except to delay our processing the* titioner, after intervening, will not
make
an
appearance at the hear¬
application.. I am not questioning
the motives of these would-be in¬ ing.
This too places an unnec¬
tervenors. I am only pointing out essary
imposition on the appli¬
that, regardless of -motives, they cant, the Commission, and its staff.

"identical" issues,,

has

nec¬

proper.

Chairman, Federal Power Commission

FPC Chairman asks Gas Industry to eliminate voluminous

of the

sought are not
that' others are

and

essary

heavy work-

load of the Commission's staff. "*

Intervention

We have found that many

By JEROME K. KUYKENDALL*
<

•

interventions

Looks at the Gas
,

•*
t

the

244

The Commercial and Financial Chronicle

(1754)

A Banker Looks at Inflation
In the Unite! States

tinental,"

inflationary

that they

willing to make the

uncontrolled

bills

could

number

increase

of ^

the

this

dollar

may

ultimate disaster

the entire

treme

tion

for

(3) By reduction of the money
supply, or at least stabilizing the

tion Of similar

proportion did happen in Hungary

the

equal

took

buying

power

Germany in the early

1920's is

where

extreme
the

example

mild

inflation

even¬

Hungary.

ceivable
ruch

that

fantastic
it

this

German

Central

highly regarded

ative

had

and

reputation
as
Reserve Banks.
A

relative

our

own

Federal

from

that

note-issues

the

was

consequence
of the mark

the

ration
of

for

the

German

continually

quantities of paper money which
the rise in prices
required. It de¬
voted

itself

especially to the or¬
ganization, on a large scale, of the
production of paper marks.
"Towards

1923,
the

the

mills.

the

end

special

notes

The

paper

made

was

October,
used

for

At
a

this

time

Re¬

enable

the

think

would

*An address by Mr.' Hagemann
Annual
Convention
cf
Savings

before
Banks

Association of Maine, Sept. 21, 1956.
i-"1'

control

and

extended

wage

We have

(4)

ernment

with

gone

subsidies

hand-outs

some

govway

for

the'

illustration

period

of
is

the

have

been

intrigued

was

and

African

$20

chagrined

though

$20

was

him

the

years

dollar"

dramatic

that

over

idea

that

is not

people

many

American

even

to be¬

seem

into

such

have

designed to do
ample powers at

years

not

only heavily increased
debt, but also the

over

the

last

proportion
short

the

debt

will

respond

file

and

that

Through¬

Dominican

Egyptian

....

our

Power,
%

Salvador
Turkish

Hong Kong

Indian

Malayan

Pakistan

New

Ceylon

Belgian

32
32
........

Thailand

....

...

Guatemalan

Australian
Finnish

Austrian

.....

can

rency

for

was

the

cesses

Banks

them¬

perspective

52%

in June

legal
minimum
is
straight 25%
but
prior

change,

make

this

1933;

legal
was

the

of
and

40%

gold

now

Japanese

back

find

.........

New Taiwan

Chilean

Paraguayan

Bolivian

shrug
and

Indonesian

Korean

our

shoulders at

Germany,

France

can
cur¬

the

mucn

pros¬

business

then

bust.

lof

fully

aware

their

Mr.

Baruch

;

fal¬

be fal¬
These:

countries.

ployment,

True -General

and

for; all

Employees/

FALSE.:,;/.'.,
It promotes

short

pull,

perience

employment for the

as
the tempo of
increased, in the ex¬
other countries, un¬

but

inflation has

employment increased and wages
actually decreased in real pur¬
chasing power. Under extreme in¬
flation, with rapid price increases,,
it
became
impossible
to
plan
ahead, and most long range proj¬
..

ects

cancelled.

were

from

the

were

laid

Employees
industries who

heavy
off

came

soon

over

compete with the consumer and
service industries employees. With'

wages came down and came
down regardless of unions. At the

peak of the German inflation over;
of

19%

the

idle.

working

force

was

Me^ns

(2) Inflation

tual Wages.

Higher

Ac¬

FALSE.

short time (many
terms
of > paper
money) and for some people, but
ultimately it means lower actual
wages
as
previously exDlainedJ
may

times

for

only

until

not see the light
The

late.

too

was

national Bureau

for inflation

were

in Germany did

income

real

increased

in the

creased
1923

from

the

Inter¬

arrived

Labor

at the similar conclusion

that the

which

workers,

t(T 1921,

1920

reached

inflation

de¬

1922 and

course

its

peak.

and

period

ex¬

each

such

which
in¬

round

the

records

go,

very

can

keep credit
conservative

avoid

excessive

debt,

causes

have

faded

and

Inflation

(3)

have

come

into

wage-price
end.

refuse

two

frugality;
-

time
best

nor
use

words

that

—

is,

industry

waste

money,- but. make the
of both.. Without indus¬

that

unable

prices

pay

necessary

the
to

profit

smaller

busi*

wages

materials, and actually found

themselves

with

ing capital to
either
to

Experience has

many

found it impossible to keep

and

neither

come

with the rising cost of

and

It depends chief¬

must

and wages.

shown

to market.

have

of life, the

above the increased prices of ma¬
terial

the

Benjamin Franklin stated "The
to wealth is as plain as the

spiral

way

the manufacturer his

give

trol, the lessons and resolutions of

way

as a

Ultimately the public will

marked-up

new

way

that

countries

other

con¬

past have been forgotten..

FALSE.

brings profits for awhile but
indefinitely.
Sooner or later

tried inflation

Continued

Brings

for Business.

Profits

nesses

past experience—

Bernard

they proved
other

,•

inflation

the quack remedies that have

Welfare

correction

firm resolve to

generations

"gold and take

the

boom

After

and

their

are

a dim view of its
value in the world economy. This
viewpoint is not founded on good

result

but,
as
the
memories of the depressions and

Federal

that there

the

are

period

as
a

basis

35% against de¬
Federal - Reserve

against

amounts

great many people who ridicule

some

firm.
To

when

too

liquidate
larger
;

little

carry on.
or

and
_

;

work¬

They had
to

sell

out

liquid

more
..

the extent that corporations

try and fragality nothing will do;
depreciated their plant and equip¬
gold, re¬ with them, everything!"
ment on the basis of cost and not
long as people had
In our own .case with patience
fought, bled, and died to obtain it •and
on the basis of replacement, earn¬
self-denial, we would, un¬
for the last 5,000 years or
more, he
doubtedly, have recovered from ings during the period of inflation
v/as going to assume that it-would
the 1932 depression without hav¬
were
substantially over-stated.
continue to hold its value in the
ing had to devalue the dollar by
World economy.
'
r
; :
' •40% and
Many times when the equipment
go on an internal irre¬
(2) Gold still is the only inter¬ deemable paper money basis. Pa¬
out,, businesses found they
national currency
Continued on page 32
and
the way tience and self-denial, however,
asked

plied

impressed by the

inflation in

(1)

.30

popu¬
as

cause

during

the

expansion

cent

Gold Retains Value

judgment

trip of the business cycle, as far

the

per

list

The unions who

It is the mistakes

evitable.

....V.......'.

French

the

made

boom.

The

boom and

troubles

result¬

Reserve notes outstanding.

..........

even

risk

are.

periods

resulting

are

their

rose to 96% in December 1941
and
at the present time is around
45%.

.i.

Israel

fail

Reserve
Just

Banks

Brazilian
Greek

Ecuadoran

selves.

posits

Peruvian

.,27
Danish

Swedish

Federal

strain

(1) Inflation Promotes Full Em¬

possible

year

popular appeal but lack economic

not

Nine Inflation Fallacies
Here

they

Wicaraq'«an

Maybe we can in¬
and keep the in¬
under control indefinitely,
but it has never been done before..:

the mistakes and misuse of funds

foreigners,

is done.

flation

troubles, rather than to think that

policies

People tend to think that depres¬

......

...

con¬

and credit expansion

cycle of

Ireland
Mexican

they really

money

the

many

inflating and return
before
more

stop

flate 3%

Federal Reserve Banks gold ratio
and the increase in" our short term

........

harm

calamity?

perity,

de-

sound

(9) We have not taken seriously
decline over the years in the

Uruguayan

;

bank

the

the
requirement

33,

Zealand

British

using large

gold ratio

Purchasing

7*1

Haitian

Irish

sion.

ing

currency

including

been

easy

commercial

the

ally been the result of too

posits for long term plant expan¬

Pn.»nnue<e

We have

obligations

1946-55"

Swiss

(8)

dire

usually
have
their
beginning, as did our current in¬
flation,
in periods
of
business
stagnation. Depressions have usu¬

the

Inflations

sions

own:

"Loss

amounts of

ourselves

fallacies

continually in¬

tion.

idea of what has been

the

and

history

tionary practices that have
lar appeal until shown up

able

the

redeemable at the option
holder.
Furthermore the

enormous

all

The answer lies in political ex¬
pedience and in the various infla¬

(7) We have ceased to press
seriously for Federal debt reduc¬

seem

compiled by Franz Pick

countries

many

are

national

our

the failures

expose

;

have

inflation,
you
rightly inquire why do we

market interest rate just in

the last few years.

When

expected

many
inore people looking for
jobs than there were jobs avail¬

Origin of Inflations

emerging

almost

extended period and

able

lieve it.

than

na¬

North

was

purchase
gold piece. This

better, under the circum¬

stances,

lacies

get

War

students of money. Maybe we will
be the exceptional case and be

lacies

the

World

the

Korean

costs, the value of the dollar has

dollar bills—

gold- incident

dollar

big

costs/and

respond

money—even

piece. 'He

lars

■'

in. for

means.

considering

Our

find that it took 35 American dol¬

con¬

getting at the

•

could

help

would.,.not

this

gold

trols have tried to stop the effects
cause.

they
and

Compaign wanted ot acquire
■

periods, and these

of inflation without

natives

for, price
controls over

gone

far,

soundness:

landed

souvenir

period

.'V',,''' ■"

We have

(3)

Depreciation

Hungary

over an extended

years.

un¬

deficit

War

prosperity

create

through this

they

General Eisenhower

for

and

(6)

rank

gone

budgets

financing

power of their money.

Spanish

good idea to define inflation

have

functions

f<$r

and

Suggested Cure

(2)

balanced

they had been burnt too badly
and too often on previous occa¬
sions by their own paper money.

money,

creasing.

Congress
demand

Iranian

Inflation

paper

War

beginning in 1933.-

port.

tempts

are

paper

stopping inflation can only be
brought about with public sup¬

happening

irredeemable

World

This was

out.

way

spite of the dismal, long
of all previous at¬

record

troops were furnished
with gold coins in order that when

tive population. Our previous in¬
vestigations had revealed that the

eco¬

' *'>

-:n

parachute

main

governments contingent liabilities

paper

printing works of the

provinces, were
continually printing notes for the
Reichsbank."

the

Colombian

its great equip¬
ment, were no longer sufficient
tor the needs of the
Reichsbank;
about a hundred private
presses,
In Berlin and the

were

the

use

Reich, in spite of

Definition

Federal

order

out

cajry

they

economy

increasing

for

freer

of the

Banks

A table

its

the

are

about

cooperation

years

basic,

many

deficit financing and

our

range

gold

the invasion of North Africa.

flating
Mone

■

interesting sidelight

came

(1) We have internally gone in

independence

provides

depreciation

considered

—

principal task, not the regulation
of the circulation, but the
prepa¬

ones:

Violated

last .,23
Here

against
value

may

out the World

inevitable

laws.

stated

controlled

Currency

the

violated

nomic

chasing

fatalis¬

increase

have

Laws

value

real
the

rency.

can

Economic

the continued maintenance of the

spending spree and
still
are
only mildly concerned
with the deterioration of the
pur¬

chow far off the beam the Reichs¬
bank was seduced—"The Reichs¬

bank—having adopted the

happen here.

of
cut

turn

of previous attempts at

moment

Inflation," by Turroni, a lead*
ing
European
Economist,
will

blindly, it

has

its

sequences

re¬

A further step would be

economy when¬
ever
there is a demand
by the
electorate for such a move. At the

cvf

to
ex¬

go on

money,

devalue

prices for

the

"Economics

paper

wants

to be still oma

quotation

idea

for

conserv¬

same

elimination

The carrying out of the program

Bank

the

could

their command for the control and

ever get itself
as far away
from sound financial policv as did
the German Reichsbank. Prior to

1920

the

This

stopping of inflation.

could

country

of wis-

place

iasing the money sup-

trough

held up

(5)1 notice also that whenever

■

(5) We had rigidly controlled
interest rates and pegged bond

and

bank,
Reserve,

Federal

our

laws.

the

dpm.^HB the 3Qs, we chose
itel l^BHphort cut to prosper-

gov¬

government deficits and substitut¬

which

incon¬

inflation

they always have to use it as a
means of comparison in
cheapen¬
ing the outstanding paper cur¬

and

afford

and gone.

come

which

other

ill

can

bales

money,

ing therefor government surpluses

them

central

any

needs.

experiences

with

paper

something

can

past

strewn

everyone.

serve

The dilution fig¬

just about

are

done

duction.

completely destroyed in that

ures

seasonal

which could be used for debt

tually got out of control. For all
practical purposes her currency
inflation period.

one

inflation

nnother

original unit before the
began.

supply outstanding adjust¬

money

828

units

money

infla-

the

its paper money, so that no matter
how much politicians dislike
gold,

sion

this country,
but

encouraged

tention of earnings for the financ¬
ing of modernization and expan¬
of production facilities, rather
than financing through borrowing.

incon¬

the

moral, social and

from

gold coins,

ernment administrations that have

pos¬

this country if
we
continue
over
the
years
to
break
fundamental
economic

supply of goods brought about of
by the encouragement of the re¬

infla¬

savings

the

ex¬

ceivable

the

spending,

stimulated pro¬

(2) By an increase in worker
productivity and an increase in

pre¬

gram

posterous.
Such

government

increasing rewards for thrift.

com¬

pletely

from

During

combined with

think

paper

there

dollars chasing too

earth

with

much

treme

goods and would like to sug¬

about

can

ignore the danger of possible

too

tion

consequences.

learn

nations.

are

surface of the

layers of them,
would

1938-1946.

economic

(1) By a decrease in consumer
spending brought about by a real,
determined and ^effective reduc¬

pa¬

all

sible. disastrous

would be suf¬
to

tory

our

few

many

learn

gest three principal ways to cure

point

you

octillion

which

that

boom,

meaning of inflation and its

inflation:

per

between

define

I would
in

situation

currently in

are

sponsibility, as citizens
of
the;
leading nation in the world today,,

where there
ficient

tt. F. Hagemann. Jr.

ly, and that the cost of living has
hit a new all time high. Further¬
more, we should not shirk our re-:

necessary

simple terms.

that with

inflation

the

country

tell you

were

over

matter when they were minted,
continue to have value while his¬

dollar has depreciated substantial-. worthless

Congress and the electorate

argument

dodge

cannot

themselves in
views of

scious of the fact tnat

Con¬

fact that

Introduction

tic

but

Worth

the

sacrifices to
maintain dollar's stability. Mr. Hagemann cites reports from
fellow bankers of instances of money fleeing into things just
prior to increased effectiveness of credit restraint program.
Defines, explains origin and cure for inflation; lists economic
laws violated in past 23 years; refutes claims advanced by
inflation protagonists; and reminds those taking a dim view
of gold standard of current functions and views of indispen¬
sable gold.

"Not

and thus, would be

was

there

time

virtues and political ex-

rare

from

expression

all commercial bank heads, directors
custodians of the people's money, to mobilize
the fight against inflation by disabusing errone¬

understand that the inflationary road means

(3) Have you noticed that at any

and trustees, as

ous

was

pediencyvtook

1789-1795, we can' gold that the government alway;
ignore the inflationary period of: takes the = gold and leaves the
our own colonial days from which
paper money with the people?
(4) I have always been con¬
monetary period We still have the ■

Boston banker appeals to

are

themselves.

France

President, Rockland-Atlas National Bank, Boston

governments settle debts between

trayed in Andrew Dickson White's

"Fiat Money Inflation
in France" covering the period in

By II. FREDERICK HAGEMANN, JR.*

time of the Assignats so ably por¬

pamphlet

Today

Thursday, October 25, 1956

-.1;

how he felt about

that

^vore

Volume 184

Number 5580

The Commercial and Financial Chronicle

....

(1755)

A Look at Sho t-Term

(b).Then, from the proceeds of start construction on the project,
regular long-term bond issue the city officials resort to the use
pay
the bills for the expensive of short-term financing in the in-

Financing

major conduction \vork plus any

Municipal Analyst, Wainwright

Municipal analysts

are

trend

bond

toward

borrowers

term'

seeking

financing brought

possible

by municipal

stop-gap

sinking fund serial maturity issues; and explains
procedure municipal borrowers might employ to reduce amount"
of

capitalized interest; and the gamble this might, aho involve

market not

■V way they
-

nearly .in

the

change to lower interest rate pattern in time for.*
non--postponaible major commitments.-

size

the

reserves

the

with

yield relationships could possibly
ness in the money market which
occur wherein
short-term yields
featured
increasing pressure on would exceed those of the longFederal

continuing tight-

Reserve

term.

Bank

Member

While

not

personally

major banks

believe this will be the case, an
examination df the yield curve

for

the

leserves,

New

York

the

1920-21

years

and

City and Other particularly 1928-29 will
fnancial cen- precedent for
a
pattern

ments

issue.1

a
this

For

would

braska

;

Dealers.

Appointed
Sampson

bey J

mem

of the

nominating committee are::
Billett, McCormicIc
& Co., Chicago,
L. Raymond

in—SliLaPffJwT'
V

Rogers. Jr.

__.

Other officers are William C.
Poid;er> Executive Vice-President
and Treasurer; Walter N. Mathis,

manMivprabiiitv affordpH

Securities

mpmher firm

ft;

the National

York

wji?vLL?

,he.f™k1™' jlfers

plav

it tee-*

Association

r-OTYinanv

Sale

Bond

who

thGse

.n<Mc

(IllinoLyIndiana, Iowa, •'
Michigan, Ne- '

Texas

ni2mhpr«hiiv?n

Timing

•

show
of

nec-

well as coupon paythe life of the bond

over

th«

Wisconsin)

period (assuming a
bond issue in this in-

stance),

ap¬

ominatin# *

ANTONIO, Texas—Elmer

is^£;

construction
revenue

N.Y. Exch. Members
SAN

to be capitalized during the

essary

been

No. 8

proportionately decreased, this in turn would reduce
the dollar amount of interest

Faced

has

DiKKmar & Co. to Be

con-

bond

Chicago,'

pointed Chair-

out

would be

sue

C o.,

man

line

aside for

set

amount

McMaster

Hptchinson

refunded from the proceeds of the
bond issue,

In this

get" the "water"!

can

111. —Sampson

R°gers, Jr., partner,

the municipality steps into the
market with its permanent bond
issue and the short-term debt is

tingepcies. By. doing away with
excessive! amounts of contingency

—particularly,-if the electorate is displeased^-should the

costs

with ultimate actual costs.

administered

.mated

•

CHICAGO,

After the election crisis has
passed,

■Municipal officials further reason
that .by
using short-term
money as the first step in the iinancing operation it is possible to
defer major expenditures to gain
enough time-to bring their esti-

NASD Dist. Committee

betweenjthe

initial stages
construction* dhcTthg election.1

have been de- of

ferred.

financing vehicle
propitious period to market the usual longterm obligations. Municipal analyst Toolan compares adVantages of term bond issue with market's preference for trusteeduring these not

other expenses that

& Ramsey, Inc.

alerted by Mr. Toolan

convenient

terim

Rogers Named Chm.

the

By ROBERT E. TOOLAN*

Charles G- Glore' Jr- Glor-.

ctpresWent
F°rgan
& Co- Chicago.
a?®?
-John.

Douglas, John Douglas Cc'
iha, Neb.
.»

t,r

tneir

rates

sale in

ke uiduced to issue tneir obligations in the. form o£ term debt. ;

primeborrowers
y4 of 1%

from
4

331

percent,

Term

r^vihi^nre
1933.-Subs

ouently,
Kouert

effect

that

™

they

heart

one

the

u?S

tates a Price differential in favor

of the issue maturing seria11^

two

Past experience has shown that

credit picture has served to focus attention
on
the subject of short-term

tty's obligations maturing

nancing.

single

concentration of

fi-

'•

Debt-

1
In
we

periods

are

risk and

Short-Term

to-the

expansion

industry

capital

coupled

with

income

For

■

faiJ ' or
n .^e well-intended
but apparent misuse of moneys in
a sin^mg tund resu ts in a S1tu~
? 01J wbere the money supposedly

5boSto

com-

pete

successfully in this atmos¬
phere for new funds, it is neces¬
sary for
them to' market their
obligations at constantly iricreasing yields in favor of the buyer.
In
a

situation such

this there is

tendency for the yield
cut, that is, the

curve

flatten
rate

bid

serial
to

for

short

loans

the i

will

longer

loan.

same

prompts

This

the

circumstance

short-term

financing via tax anticipation or
bond anticipation notes rather
than
permanently iniebting a borrower
on

the basis of the borrower hav-

ing

almost

pay

shnrt-tprm

.short-term
securities

much, for

mnnovon

money on fixed income
he does for

rTO

lon^term

Many borrowers feel that s^ortterm

money should be available
much lower rates than

long-

term

money insofir as the permninvestor does not have the

nent

amount of

principal invested away

from his control for
nod

time

pent investor

nor
nin

does

the

long a pethe perma-

same

risk of

judging
- conditions for the next
few
years

of 15

the

he does for

more years.

period

redemption

we^.aware of. the inherenr
dangers t involved in terni. bond
frnarKapg> especially, pf a general
obligation nature where there
are

trustee .relationship involved,

this methoif

'rtMket

interests.

jthat

our

economy

further turn

screws

necessary

determine
the

inflationary tide that has
from
grams
*a„

the

record

Municipal
City.

Ihe

resulted

expansion

industry,

address

credit

stem

nro-

theless
Cal

pattern

mu-

under

demands

this

row

from

pressure

initiate

lo-

progress

of capital outlay. In

connection

^rs^.

aj.

has

short-term

for

outstanding

amount

bor-

time.

cho^ter
they

this

reduce

interest to be

during
on

the

capitalof con-

period

their

the

bond

revenue

issues by the following procedure:
(a)
the

With Hanrahan & Co.
(Special to The Financial Chronicle)
WORCESTER, Mass.

Gil-

E. Manning, Jr. is

now

—

:
,.

Henry

with Ham-

man has joined the staff of Tucker, rahan

& Co., 332 Main Street,
Anthony & R.,L. Day, 74 State members of the Boston and Mia.
street.
west btocK j^xenanges.
;

This advertisement is not

ofer&to sell

or a

The ojjermg is made

solicitation of

ofer to buy these securities

only by the Prospectus.

new issue
^

appearance

back to the market level
wbich prevailed at the time the

$55,000,000

carry

.egatnayvjPsi
Elections

was

con-

»•

National Steel Corporation
First

Mortgage Bondsy 3%% Series Due 1986

jn sbort, if a borrower

has sufficien^ time leeway,-he might emj
th
above operation to his
should a borrower be
,

that

toe

Construction

Dated November 1, 1956

Due November 1, 1985

eom-

project

the money needed to pay for

ramble

rQwer
—

this

would be
the

ill-advised to

above

-W—#

manner.

left with but

would

vr
-V

i ii

the

alternative, that is to sell the
bonds at a higher rate of interest
a"d the municipal official s constituents «if|uld find his action lmprudent and his postion indeSensible.

programs

case

'•*

Copies of the Prospectus may be obtained in any Slate only
from such of the several underwriters named in the Prospectus
and others

may

lawfully

ojjer

engineers, fiscal agents,

rigM-of-way,

these securities in such State.

contractors'

bills

fo&

land

ac-

and

the

1 e

a r

n g,

installation

the

to starting
construction;•
pnnetrnnt?/m

the

on
'

•'

system, a s^wer system, or
Possibly an electric utility system

Harrirran

The First Boston Corporation

Ripley & Co,

Incorporated

White, Weld & Co.

Elyth & Co., Inc.

Smith, Barney & Ca»

fr0m the proceeds of a bond

Eastman

Dillon, Union Securities & Co.

Glore, Forgan & Co,

issue,

The

city officials know that to
SUpport the operation and mainte-

charges of the system, as
as the debt service, charges

Kidder, Peabody & Co.

Lazard Freres & Co.

Lehman Brothera

nance

bonds,

the

increased

impofeon
rates

users of the system will
quired.
Realizing that a

timed

announcement

and otiie/. related work creased rates in
preparatory

Kuhn, Loeb & Co.

finance

lawyers, sharply

of capital outlay. Take
^ city which proposes

could

cause

norPMfeinno

percussions

serious
nnA

and

irot

yet

Stone&Webster^ecuritiesCorporation

the

Drexel & Co.

re-

poorly
the in-

election year
political
flof irinrt
desiring

Merrill Lynch,Pierce,Fenner&Beane

re+/-,

Hemphill, Noyes & Co.
Dean Witter & Co.

October 24. 1956

water

First, from the proceeds of well
financing pay the on the

rjaiiition.

Price 99.G25% and accrued interest

one

short-term

smaller initial bills of the

mninr
major

—

been

be effected bv communities if

ized

BOSTON, Mass.—John L.

of a recovery
However, the borrower
a|wayS runs the risk that even if
recovery takes place it may not
0| suffjcient magnitude to even

they can have a smaller amount of the
debt

affiliated

Co.,
T-,

wouM have

borrower

seized upon by
Short-term financing has served
some as a convenient st^n-gap fimunicipal officials well as a tool
nancing vehicle. They reason that in manipulating the timing of cersubstantial
interest cost
savings tain
announcements
relative
to
rowing

can

studied

bein«

most

programs

Mr. Toolan before the
Analysis Meeting, New Y^rx

VeaR^^t

WMle
the

struction

If the monetary authorities who

the

proSftious tFm^ to
rmrke^oWi^ationsfthey are^)one°
on

now

Merritt

while the mark.et m'8ht rise> il
borrowing*
Dorrowmg toffidals
oniciaxs a!s0 mi3ht seli^ff and the bor"

"arefullyTy
careiuiiy
ny
^

witii;
Inc., Third,
tional Bank
f
National
Bank Building.
King
-—I

Joins Tucker, Anthony

^y and be in a position

stancj

borrower

Procedure

The current climate of

not

Kavner

Mass.—John

project will be due and necessary
within a specified period, then the

Borrowing'

Municipal

Possible

against

Sal

SPRINGFIE L D,fJVfass:# Lo?i

.j>

expect

disadvantageous

securing

(Special to The Financial Chronicle)

pain the advantage of a mar-

t,frn

ptotton
funds.

King Merritt Adds

"almejr, .f)Ollacchl

Pollacchi & Co., 84 State Street,

Return of the Market and

would

manage

ket

Experienced municipal analysts,

possibility that long-term in-

their

at the

been added to the staff of Palmer,

highly improbable.

pears

required time.

neriod

exercised

prtllft.-ki

Keenan and Robert J. Smith, have

municinal market would have had
to decline uninterruptedly for a

short-term -financing

their

for

There is also

vestors may have
call
features

able

relatively

maturities

thoughts

interest

maturities
rise

yLSui. ^Pat.Jt at times complicates
lina^lnS of tuture bond isOther times lack of good

private

problems such

causes

p9imlw

period of 15 months and this ap-

issuers

securities

to offer his issue of bonds for sale

money,
the hire of the dollar becomes
pro-

fixed

ture pf the community with the

tightness in the supply of

gressively dearer.

BOSTON,

^apse^FOTa recoterv'nVt to mate?tol1zeFU wotod meanlhat toe

the dislocation of the-debt struc-

general

uninterrupted trend far a period
of h year and taking into account
the fact that this present market
has declined steadilv for the last
three months, it would appear that

now

experiencing, that is
where there are vigorous demands

for

redemption date one year hence..
^ we allow that municipal mar- .♦
kets do itot constantly follow an

one

similar

municipal-.

year or in a few. particular
increases
the
repayment

years

Borrowers Switch to

^he Yirm maintains offices in

has just been

national

Raffensperger, Re?fensperger,' Hughes & Co., Indi¬
anapolis, Ind.

^rer

somethat

assume

gned^n serial
tT- the odds would favor a recovery>
®
s^rlal maturity form. In.benefiting the borrower, before

l™Federa^eReservenBarnks
This
punch to tl

to 3%.

administered by
i

their discount rates V\ of 1%. This

for'aU

tofY!ew'

^ega ds call features) as desirable

increasing

were

.a.welj suet

11s

concluded for a certain sum with a

_^,V®*eebe (with the ex-

Aiifiist 30, anmade to the

were

y/L'

Maturities

f ft

sWhort-term tinancing

Serjal Loan

vs,

dur-

/ugust
nouncements

Issue

/vffrxrX-'- 'til*'-

in? the period

1 ouian

c..

Bond

today's bond market

pasier

wua+

Lee Higginson Corporation

The Commercial and Financial Chronicle...

(1756)

Thursday, October 25, 1956

earnings in the future. The ;
yield of around 5% on the
regular dividend, r plus the 4
possibility of another extra
payment this year, make, itf
attractive for a satisfactory

THE MARKET... AND YOU
By WALLACE STEEEXE

NSTA

return

Stocks

mark

ing to share in the optimism
time lor the most part again present in the unveiling of
this week, presumably con¬ new models, steels ignoring
tent to hold in the trading capacity operation^, and con¬
range that has persisted most centrating a bit more on the
of this month until .the elec¬ strike-hurt third quarter re¬
continued

tions.

are

week

out

from

so
*

the way

comforting

The

Nov. 17,

Sleeping Beauty
issue

has

that

Fourth

sociation

Rustling of Another
Standard Brands is another

The Airliners Still Grounded

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

holders.

ports, etc.

now.

apart from the indica¬

tions that future results will

Annual

CLUB OF ST.

The

Security Traders Club
following new officers: >."•:"7'

only recently

emerged slightly from a rath¬
er
long siesta induced by

the

Investment

LOUIS

St.
.

Out of the welter

came

lit¬

such

small morsels.

the chemicals. More¬

has

issue

traded

bit

indicating

frequently,

rise

Earm.

in investment interest.

Edward

Corp.,

Chicago
of

tinction of

low level

something

well

by the usual price

measurements.

The

name

»mm

gives little hint that this is
one of the fully
integrated oil

companies.
alone

ket

1st

the

case

r e m a

Cautious than:

1952

was

when -the

parable to those in other in¬
dustries, and a price-earnings

above-aver¬
age
rate as the company
achieved integration but the
peak price recorded by the'.

ratio

near

r"-''

•

ward

■ *

and

Group action was largely:
meaningless, except for some
pronounced

easiness

the

copper' shares as the price of
the red metal continued to
ease.

Elsewhere it

a case

was

largely

over

has
in

the

decline* in

earnings

the last five years. There
been no marked upturn

the

latter

management

since

new

took over the
but sales have

company,
-turned the corner

and

"Chronicle/'
those

With

They

are

are—Earl Hagensieker, Reinholdt & .Gar dner;
Fusz, Fusz-Schmelze & Co. Inc.; John Bunn, Stifel, Nicolaus
& Company, Incorporated; Herman Zinzer, Dempsey-Tegeler & Co.

Firmin
.

"Neither the Democrats

(Special, to The Financial Chronicle)

B OS T ON,

Mass.^-Frank

Stucke has become connected with

negative approaches, aggressive policies should
consistently refus¬ start to be reflected in better

Yorkahd Boston Stock Exchanges;

gress

Street, members of the New

can

A "dirt farmer" speaks. May his tribe increase.

...

)Vith Eastern Sees/ ;

White Adds to-Staff

(Special to The

(Specir.) to The Financial Chronicle)
:

ST.

o m

Financial

Chronicle)

;

N. C. —
Arthur Gasperini is mow affiliated
with Eastern, Securities Corpora*-

LOUIS, Mo. — Glenn M.
Sherrod is now with White &

tion, 331 Marine Boulevard.

Building, members of the Midwest

...

JACKSONVILLE,

any,Mississippi

Joins Wachob-Bender
MAlLA rK

Barclay

—

Donald R.

hasf; become, associated '•/«
j
Corporation;

with Wdchob-rBender
3624 Farnam

Street, He was pre¬
viously with John G. Kihnard &
*_

J!-"-,'

»■

,■ ■.

was

(Special tO THEFINANCIAL CHRONICLE)

•; O

Valley

formerly
with Barrett HerriCk & Co-, Inc.
/■';
and Waddell & Reed, Inc. >■ : ' ;
Stockr Exchange.

With King Merritt

(Special to The Financial Chronicle)

HASTINGS, Neb.

Hallberghas

—

•
'

{
'

C. Arthur

beconie

connected

with

Newhard, Cook

King Merritt and Company,
;

inc.

■

;;;;

■ ■■

(Special to The Financial Chronicle)

ST.

Republicans

nor

anything much for the farmer. The only thing they
can do is
get a foreign market for our crops. The
farmer is going to have to do his own [production]
cutting. But lots of farmers listen to the politicians
because they want something fdr nothing."—Just
an American farmpr—after listening to one of the
current political spellbinders.

Reynolds Adds

Schirmer, Athertort & Co., 50 Con¬

Walsh,

Joins

nevy

the autos

appointed were—Ralph Deppe, Ed¬
Co.; Kenneth Kerr, A. G. Edwards & Sons;
Newhard, Cook & Co.; Vincent Weber, Weber-

Jones

(Bud) Jarrett, Newhard, Cook & Company.

Committeemen

Schirmer, Atherton

Alternates

presented Co.

Of the author only.]

& Gardner.

Fusz-Schmelzle & Co.

Mitchell & Co.
.

Vice-President—Leo R. Clooney, Reinholdt

Richard

i ■ ]

Smith, Moore & Co. ^
Wickmann, Stifel, Nicolaus

Jack

Company, Incorporated.

National

somewhat illogical.

The long-neglected coal is¬
spring and summer were for the market, as a whole,
given over;; to backing and the stock could double in sues continue to do well even
filling with the election re¬ p^ice before becoming bver- in Uncertain markets, includ¬
sults sparking a robust
year- valued statistically.
ing Peabody. Coal which is a
end upsurge.
low-priced issue favored for
A
Still
Under-Valued
Retailer its
*
*
*
speculative appeal in some
Montgomery Ward, held quarters. The-company has
As a matter, of fact, since
back for years by a reaction¬ had a decidedly spotty exist¬
the all-time; high was
re¬
corded for the i n d us t r i a 1 ary management outlook, is ence, including severaL reor¬
What enhances;
average early in April, and among the issues that are far ganizations.
the reaction lows reached in from over-valued at recent it currently is that it merged
with an important group of;
May, the list has done nothing prices. In fact, the share of
assets applicable to the stock companies last year,
making
decisive which makes for a
rather long s t a fern ai e. A. exceeds-the market price of it the second largest, producer;
the issue.
\
" ! V ~*1 in. the countryand somewhat
couple of attempts to pene¬
of a differeht issue than in its
trate the high were
*
.#
repulsed,
past inglorious days.
and- similiarly the low* has
:
Montgomery's big handi¬
been a good bulwark on sell¬
I The views expressed in this
caps are its rather sharp loss
article do /not necessarily
jgt any
ing as recently as early this of ground to its mail order
time Coincide with- thosirof the
month.
I
competitor,
Bears,
Roebuck,
*
|

Treasurer—Aimer

last three years

Jarrett

Secretary—Kenneth J. Jansen, Edward D. Jones & Co.

Reviving Coal Issues

the "norm"

Elmer

Jansen

3rd Vice-President—Eugene T. Burns,

have grown at an

years

VicerPresident—W.

2nd

elected

mar¬

price of the'Stock. Sales

stock in the

Kenneth

President—Edward R. Oldendorph,

worth

than the

T. Burns

Eugene

oil reserves

Its

figured

are

soili# $10

Clooney

selling well below

value

asset

has the dis¬

misnomer,

Leo

Oldendorph

'MWC.,

ings have grown comfortably
so far this year with some of
the benefits of recent acquisi¬
tions yet to be fully reflected.
*

projections of earnings has been virtually identical.>
Election Caution
not only for this year but for
Projections i n die a t.e that
Ignored rather completely next; year as well indicate earnings will be better than
were more
and more polls that the issue is selling at a
50% above the results of
showing the tide gaining in low price-tinaes-e a r n i n g s 1954, making the peak
price)
favor of the GOP, and the" ratio. Given a
following com¬ "ceiling" of the last; three
market

the

•.

over,

even more

elected

runup

distrust of the government
Among the individual sit¬ subsidies which have dwin¬
uations
that
sparked luke¬ dled when profits„ improved,
warm interest was
-good
keeping the overfall results
dividend action by Norfolk &
restrained.
Western and Socony, while
*
❖
*
poor earnings clipped selected
Pan American World Air¬
issues, none more than Na->
ways, for one, is among the
tional
Gypsum which was
lines that have been less and
something of a regular on the
less dependent on the subsi¬
lists of new lows. Reports
dies
and
the
company
re¬
that the Long Bell LumberInternational Paper merger ported a profit last year that
was
not
contingent on this
was about to draw anti-trust
fire weighed a bit heavily on help.
*
*
*
the issues while, conversely,
In
other
categories Pan
Youngstown Sheet and Beth¬
lehem Steel, whose merger American rates well up the
ladder. Its yield of nearly 5%
already has drawn anti-trust
is
respectable even in the
fjr>w^s officially, were in
>art-time demand on uncon¬ tight money market era. Its
firmed tales t h a t' a way annual growth per year re¬
around the dilemma had been cently has been high enough
found. In short, the market to shame the showings of even
was
content to concentrate the premier growth industries
on

:- i

has

As¬

evening,

Louis

Throughout the market
of the last several some acute investors disin¬
lasting interest and years 4he airlines, even more terest. The stock is one of the
volume lolled at its lowest
than the railroads, have failed
neglected ones that has never
sustained level of the year.
to build up any consistent in¬ worked
within touching
A few individual' situations
vestor
interest
despite the range of its 194& peak despite
responded to good and bad important progress they have the market advances else¬
hews either way, and even
made. In part the aversion where.
It, too, offers a yield
this
action
was
well
re¬
was based on the high deple¬
of better than 5% apart from
strained.
tion charges necessary.
An¬ the small extra payment
other part was the popular made last
year. Lately the
Small Morsels
:

tle

Traders

will be held on Saturday
1956, at the Germantown Cricket Club.

SECURITY TRADERS

Dinner

Philadelphia

Mo. — Francis J.
joined the staff of
Newhard, Cook & Co., Fourth &
Olive
Streets, members of the

Hess

New

LOUIS,

Jr.

has

York

Exchanges.

and

Midwest
was

Staff

■

„

(Special to The Financial Chronicle)

WINSTON
Charles

SALEIV^

Hancock

N.
has

—

been

Stock

previously

with Central Republic Company.

added

to the staff of Reynolds

Co., Reynolds

Building.

Number 5580

Volume 184

;

The Commercial and Financial Chronicle

industries, inventories are now in
balance, although they are

Near-Term Business Outlook

probable

By MARTIN R. GAIN SBRUGH *

from

Economist doubts businessmen will
complain about in next several months, after

1956,
business activity is again in a;Tis-

•;

eraily-aided

;

roads

adding another

manufacturing

largest

1,000

Boston

First

Francisco,

Manager,

The

Corporation,,

San

was

Elected Directors
At

California

'the

mated

ing for: a
general

ad¬

It is the

clear

consen¬

sus

40%,higher than in the comparar
ble period of a year ago; at the
beginning of the second half the
backlog of approved appropriations
for
capital spending
was
more
than
60%
above
that, of

new

vance.

econ¬

omists

—

,ran~.
•

companies

foot¬

and

Wore

a,i.

creases

fhcrncreases
1953 and?1959

are

orosoecthv

q11 .+Vloco•

....

tIZ.

5***tog^herf it se^s doubtfuMndeed ^Zers of the Executice Comreservoir of

markets will

decisions to order

ment.

expanding

top-level

management

plant and equip-

to complain about in the next sev-eral months.
^months'

caution

And there

thro ughout

other

the remainder

this

and into

year

clines

early
M.

1957.

Gainsbrugh

most notable

number of

their

been

industries

and

incomes

toward

While

investment.

employment
almost without interruption

sonal
rose

and

throughout- the

half

first

the
fell

automobile production
fully 25% below the pomparaperiod of 1955* and housing

year,
^to

ble

'starts declined almost 20%. These
'

declines in industries which, with
;

good reason, are considered criti¬
cal components of the American

economy,

fully offset by a
rapid expansion in machinery in¬
were

and

dustries

nonresidential

now looks
volume in general

and

local

govern-

ments; and by a pronounced im¬
provement in export demand for

these

cle,

;

capital

private
~

Near Term

spending

shift

affecting

1957.

Residential

auto¬

Retail

being 'sus¬

months,

still

toward

to be in
next several

Construction

second

half

and '

which

sector

has

rise in
which

rate

the

coming

the fourth quarter,
capital ' outlays—the

actual payment for

capital equip-

the decline in the

adjustments

reach

experience

$38-billion annual rate.

major de¬

Assuming no
further tightening of credit avail¬
ability, it now seems likely that
has

and

activity.

deliveries and construction
high in the neighbor-

neutrality

direct

put in place—will evidently

HEMPSTEAD, N.
field trip

vestment

—

adult education groups
on

Instead

been

housing market

largely

the

reporting

lin

Redent

spent.

ground

rules

applying to Federal agencies participating in housing finance, to¬

three
are

men

the

members

teaching

these

new

the

der

continuing

financial

have
survey,

un¬

sponsorship

"Newsweek" magazine. These figf
£>>
'

ures,

which

represent

totals

for

3Sth

Sinn

talk by Mr. Gainsbrugh before
American Gas Associa-

Annual

Convention,

Atlantic

1956.

City,

Oct.

17,

least

tories of

third

retail

in¬

very

100,000 Shares
Houston Natural Gas

Corporation

steel/a-nd

were
1—

growing

(Par Value J100

noted

The

program,

plus dividends accrued from

Common

writers
in

qualified to act as dealers in securities and
Prospectus may legally be distributed.

are

which

the

speech will highijght the study course.
He will
discuss
"Why Everyone Should

The First Boston Corporation
S

Eastman

Dillon, Union Securities & Co.

Merrill Lynch,

Pierce, Fenner & Beane

Rotan, Mosle & Co.

Russ &

Company

John C. Legg

G. H. Walker & Co.

Rowles, Winston & Co.

Central Republic Company

First Southwest Company

(Incorporated)

Moroney, Beissner & Co.

& Company

Dewar, Robertson

Robert Garrett & Sons
Lovett Abercrombie & Co.

Incorporated

Boettcher and Company

Stocks."

Kidder, Peabody & Co,

Dittmar &

& Pancoast

Company

Baker, Watts & Co,
A. G. Edwards & Sons

The

meeting is sponsored' by
& Hanly, a member of
the New York Stock Exchange,
as
part
of its community and

Fridley, Hess & Frederking
Reinholdt & Gardner

Edward D. Jones & Co.

Chas. W. Scranton & Co.

Lester, Ryons & Co.
Stein Bros. & Bojce

Eddleman-Pollok Co.

Crockett & Co.

Underwood, Neuhaus & Co.
Incorporated

Join White Co. Staff

Creston H. Funk & Co.

(Special to The Financial Chronicle)

SPRINGFIELD, 111.—Edward C.

Broehl, Florence E. Emery, Homer

■Mount have

joined the staff of White & Cornpgj-jy q£
Louis. All were pre-

viously

other

November 1, 1956

respec¬

Mr. Rossiter's

Co.

these and

share)

include George Labey,
and Henry Beh-

showing of a film. Entitled "We
Did It Ourselves," the film charts
the importance of America's busi¬
ness
and
industrial strength and
traces
America's
growth
from
Colonial days to the present time.

ond

per

Price $100 per

firm, -who

special class will feature a
speaker, Ivan Rossiter, of

increasingly oppressive in the sec¬
quarter.

Cumulative

Convertible Preference Stock

Copies of the Prospectus may be obtained from any of the
several underwriters only in Slates in which such under¬

The

inven-

automobiles, and manu-

5—■*

buy any of these securities.
October 24, 1956

tively.

partial cor-'

facturers' inventories of

nonferrous metals

New

the

Lester in October, 1955.

Roach

Uniondale

and

The level of business in¬

ventories— notably

•From
the

seen

rens, Jr., adult education instruc¬
tors in the Hempstead, Levittown

where the last several months

rection.

became a partner of
Hanly, a member of
York Stock Exchange,

Mr. Terry

Edwards

MFW TC-f'Trr

school

courses.

school relations program.

area

Heights branch of¬

fice 83-18 37th Avenue.

—

joint meeting, sponsored
by the Long Island investment
brokerage firm, was arranged by

beginning of the year.
Inventory
demand is

fully supported by figures
capital goods appropriations in
manufacturing industries collected
by The Conference Board as part

in the Jackson

Street.

Edwards

currently working

The

demand, which usually occurs aft¬
er
Christmas, suggest the possi¬
bility of a mild uptrerfd in the
rate of housing starts after the

sion is

Valley
Sunrise

partner-manager
Plaza.

••

■

the

Stream office located at 1

when they

sharp increase in late 1956
portends at least a small further
climb in early 1957. This conclu¬

Oct. 31.

Own

any

Davids,

Mark

partner in the firm, Mr. Terry
capacity of resident

This advertisement is neither an offer to sell nor a solicitation of o^ers to
The ojjering is made only by lite Prospectus.

An
a

include

literal sense—is in store for three

gether with some easing in credit

and

decisions

guide,

past

the

been

terrent

work

hood of

cy¬

Other members of the Executive

Committee of the California group

clear

than

ment

new

either of

judgment

business

Francisco,

have

over

building market. In this the executive staff of Standard
tight credit has been Poor's and a film.
an
inconvenience; it
The program will begin with

dential

has

will propervasive, if moderate, ex-

least

and
perhaps mild strength is the resi¬
to

vide

influence for

situation

will act in the

classrooms at 8

Inventory •

the first half of the year

Angeles.
From
Northern
California,
John
Inglis,
Vice-

Los

Investment Field Trip

Alfred

quarters.

Manager, Bateman, Eichler & Co.,

man¬

Adult Education Groups

three

industry,

pansionary

remains

sound

seems

the

over

sustained the level of business in

for

prudence

meet

recent

consumers

saving

STREAM,
N. Y —
Terry
will assume

a three-year term are
Stockbridge
Vice-Presi-"
Security-First National

By- all indications, the

em¬

aspects of the business
and .there

need

shifted from weakness in the first

Strengths for the

full

our resources

reached full control

saving rate is now
comfortably high, and no sudden

American merchandise.

dent

present
business
which
suggests
that

personal

months.

rising expendi¬

state

trade

retail

the

and

the

stimulated

and

prospect

services;

VALLEY

Robert- W.

for

and materials, we must be
continuously aware of the alter¬ President, Blyth & Co., San Fran¬
native
dangers of inflation and cisco and George J. Otto, partner,
readjustment. There is nothing in. Irving
Co.,
San
Lundborg
&

consumer

bright.

exten-'

optimism beyond the
short term.
At levels

Store, Milwaukee,
V r v'v
■

years.

charge of the Valley Stream
branch office of Edwards & Hanly,
effective Nov. 1, it was announced
Bank, Los Angeles, and Bill De- by Bert Edwards, Sr., managing
Qro0^ Yice_president and Sales partner.

Frimk

p.m. as part of^he
by a con-|
normal routine for their invest¬
tinuing uptrend in wage rates, and
ment courses in the Hempstead,
it would not be surprising if this
Levittown and Uniondale school
trend were further amplified over
the near term by some increase in districts, the 75 adults will meet
in the Hempstead office of Ed¬
average hours of work.
Despite
wards & Hanly, 100 North Frank¬
the record and near-record levels

tained

of consumer outlays for soft goods
tures

the

market

heavier

respect to

that

alone

construction; by continuing growth
■

with

not

mobiles

per¬

eiected

would

power

these emerg¬
preceding decline in ing strengths is the automobile,
industry,
In
September,
passenger
total activity. Over the past sev¬
eral years, we have heard much of car production was at its lowest
the
phrase,
"rolling
readjust- level since the days of the Conment;" but few of us could have' trolled Materials Plan and the
anticipated the ponderous roll ex- steel strike of mid-1952. From this
perienced in the first half of this low level, automobile production
year. During those six months, the' is now ip a pronounced recovery,
level of employment and
trade' The substantial redesign of the
was
well
maintained, and the industry's product is widely ex¬
psychology of a boom preserved, pected to generate a volume of
despite a massive redirection of sales perhaps 10% or more above
output away from certain key the average rate of sales in 1956.
business

I
blanket

mittee from Southern California

this

activity

ployment of

persistent

consumer

Most notable among

established without any sharp or

against'a

relatively

de¬

level

deflated

very

sion

op¬

from the negative to the positive
side
of
the
forecaster's
ledger.

a new

basis for further growth has

now

result

the first half of the year, a num¬
ber of major markets have moved

aspect of recent busi¬

history is the fact that

ness

during the shifting adjustment of

Perhaps the

are

grounds for short-term

timism.

However,

Terry Branch Mgr. for
Edwards & Hanly

that American

the Boston

for many

Vice-President, Crocker-Anglo
National Bank, San Francisco,
was
re-elected Secretary and

businessmen

Treasurer

and

Federated Department Stores, Inc.,

fir" Vice-Chairman. Alger J. Jacobs,

Small

was

the

Vice-President

Dennis H" McCarlhy

Walter.}

cement, and comparable inin clay products, petroleum

the

expanded
following: Hiram
H.
Belding, Jr., Vice-President,
Blyth & Co., Inc., Robert M.
Markwell, partner, Straus, Blosser
& McDowell and Richard E. Vogt,
President, Kirby - CogeshallSteinau Co., Inc., Milwaukee. Mr.
Vogt
was
formerly divisional

ap
c^sc°*

spending.
Estirequirements for

material

company,

directors

include

rtfan?"fi

dimension to

new

local

and

Milwaukee whole¬

order

mail

board

® r 1 e a a:

recent meeting of the board

directors of General Merchan¬

sale

program

dise Company,
A

: C u r t i s
H.
in the country, indi- tthe expanded highway construcing trend;. After' less than-ftine cate that appropriations i by -alL'tioh program'-call .'fof 20%' more8 b a m,'
months of shifting and groping, manufacturing
industries in 'the ?steei f0r roads in 1957 than in p a r * n e r
business
has
l-1" : - ~ u
fi„rst L----half Of ,1956 were roughly
jgsg. 2o%" more "explosives;" 25% ®® h a ?

found

Whitaker,
Skaggs & Co., San Fran-

CISCO.

the

Los Angeles; Murray

3u*tori

elected Chairon a n

ratq has risen 50%, in the infer*
Vening three ; years. The
Fed-

(3) better balanced inven¬

the

Coast

state

quarter

Pacific

and

^ Curtis,

FRANCISCO, Calif—DenMcCarthy, Vice-President

demand for still higher levels of XroVrv
spending for school construction f*
is as intense today • as ..it was
w
1953,. even thbugh -the* spending;

tories; and (4) continuing upward state-local .expenditures.
final

nis

continuing
their
persistent
uptrend of the past decade. In fact,

still beyond the reach of control and requiring sound
business judgment and prudence in 1957 business decisions.
Mr. Gainsbrugh sees sources of strength for near terms in:
(1 )expected private capital spending plans; (2) retail volume
stimulated by rising wages, comfortable high personal savings:

the

SAN

early 1957.

Empey, American Trust Com¬
San Francisco; Stevens
Manning, Paine, Webber, Jackson

pany,

are-

gers

occur

Calif; IBA Group

voluntary

should be added that expenditures
for state and local governments

however, of alternate inflation and readjustment dan¬

rate, and expected auto sales;

further

until

top off this list of available
strengths for the short-term, it

assaying various grounds warranting short-term optimism, but
warns,

that

now

is.;,,

Conference Board's top
have much to

aggregate,, hnd. it

inventory accumulation will

Chief Economist, National Industrial Conference Board

lower ,in

:no

Ryons & Co., Los Angelas; Lester

||Allllie Ml*fiartllif II OH fie
IICIIIII5 mvUdllliy liCfluo

"better
< •

(1757)

with

Barrett

—

Herrick

Lentz, Newton & Co.

Smith, Mooie & Co.

Stix & Co.

McClung & Knickerbocker

Moreland, Brandenberger, Johnston &

Mead, Miller & Co,
Dallas Rupe & Son,

Currie

C. T. Williams & Company,

Chas. B. WhSe & Cot.

Inc.

L
T

Inc.

The Commercial and Financial Chronicle

(1758)

share in

own

Thursday, October 25, 1956

...

American

Industry."
This

Securities Salesman's Corner

well

"The Solid

—

Education And

ful

Columbia

"The

Pictures

customers and

production

Cadillac"

Gold

Solid

this

"What

entertaining comedy about a girl
"who parlays ten shares of stock

How

start?

You

brand?name

Tito control of the world's largest

as
follows:
Should You Buy?

reads

Stocks
Do

Some of

prospects.

matyerial

products

You

use

every

day.

Why hot become a shareholder incompanies that make them? advertising cam¬
General Foods,
paign that ties into the publicity For example
given to this picture in the major whose
products
include
Jello,
metropolitan areas in which it Maxwell House Coffee" and Post
maintains its 55 offices.
Cereals
Corning Glass, makers
An analysis of the way this pro¬ of Pyrex ware
and General
motional
material
has
been
set Motors, manufacturers of Chev¬
up by the Bache advertising de¬ rolet, Pontiac, Buick, Oldsmobile
corporation.

Bache

have initiated

the

and should be

widely distributed

among

Sound advice

women

work and

appropriate

illustration

and

Offers

such

the tie-in

stating the thea¬
picture is currently
showing* is given. A coupon for
tres where the

requesting
of

of Brand Name

list

ten

well

known

com¬

There

down.

can

as a

list of stocks Bache likes now,

booklet showing

investors

new

start, details of the Month¬
ly Investment Plan, Mutual Funds
data,
etc.,
are
made
available
through this direct mail campaign.
Theatre

Theatres

certain

cities

will

of the
to

Solid

across

that

Bache

by
news

programs

the country

will

the

will

the discount rate which is also at the
3%

opinion, however,
wiil

material

woman

"The

the

Mail

investor and

Solid

be sent to

Wm.

Gold

the

Mueller

city

which in

finance

which there

firm.

Mr.

Mueller will

specialize

in insurance and bank stocks.

this

cam¬

pic¬

paign

contest

Cadillac"

General

100,000 Bache

there

progress

with

the prize

Motors

best short letter

share of

common,
on

for the

****

■

The

First

Boston

associates
Houston

Corporation
publicly

holder

who

discovers

"dividends

Natural

Gas

cumulative

plus
from Nov. 1,

We've
women

girl's

investing

best

at first,

stock

want to

know

booklet
more

guide

and

men

about stocks, and who

would

prefer investing in companies whose products
they know and use. The ten well-known companies listed
are
doing well, and their share prices make them seem
favorable

now

for dividends and later

list of "Brand Name

Stocks," mail

Bached Co.
Founded 1879
Members of all
leading exchanges
Please send

your

Brand Name Stocks.

profits. For this

coupon.

36 Wall

St., New York 5

DIgby 4-3600

list of
"

($100

Telephone-

hand, there is this

expansion

the

Proceeds

the i economy as a whole.
Nonetheless,
develop in the business pattern, there

upon

the

option
of

common

the

toward

sale

Part

yields that

the

securities

which

are

which

have

bonds.

This

fu^ds

re¬

quired
in connection
with " the
purchase of the capital of Pipe

advisable

Line

refunding of its
long-term debt will be procured
through
Houston
Natural
Gas
Corp.

turn-ins

Houston Natural Gas Corp. is
engaged nrimarily in the business
purchasing
and
distributing
natural gas at wholesale and re¬

been

and

tail

the

Texas

and

serves

Coast

from

Bluff, having

comprising

some

communities.

tions.

been

It is reported that the higher

corporate

through
the question

June

compared

with

total operating revenues of
$45,149,916
and
net
income
of
SI,151,456 for the year ended July

revenues

'
\

not

that

the

Policy

tend

towards

easier

money

conditions,

which

favorable effect upon fixed income bearing obliga¬

On the

other

hand, the return to

argued, would probably

see

power
no

of the Republican

change

in monetary

If, however, there should be another burst of confidence

might become tighter.

Eisenhower, and the equity mar¬

This could

the prime bank rate as well

even

bring about

the discount rate.

George I. Griffiths

increase in

With Jay Kaufmann Co.

With Gottron, Russell
(Special to The Financial Chronicle)

Griffiths

has

become

(Special to The Financial Chronicle)

MIAMI

associated

bers

west

fiths
his

the

Stock
for

own

New

York

Exchanges.

many

years

investment

and

mann

Cleveland.

(Special to The Financial Chronicle)

SALEM,
of

has

Chas.

Oreg.—James

been

ST.

S.
R.

PETERSBURG, Fla.—Albert
has joined the staff of
F.
Campeau
Company,
110

Branin

Second Avenue.

With Chas. A. Goodwin

vin

Campeaq Adds

(Special to The Financial Chronicle)

Mr. Grif¬

conducted

now

R. F.

Mid¬

business

BEACH, Fla. — Marvin
with Jay W. Kauf¬
& Co., 123 Lincoln Road.

Botwin is

with Gottron, Russell & Co., Inc.,
Union Commerce Building, mem¬

Houston

transactions, would have
to $30,711,598 and net
income to $2,756,647.
'

advance,

ket should boom again, it is believed in some quarters that
money

Corp. and Houston
Pipe Line Co., eliminating inter¬

whether

factor in the mohey market, but it has

with the reelection of President

Gas

amounted

less in the background and it will mbst
likely con-^
are known.
The Democratic

probably

policy.

total

company

the
as

interest rates continue

CLEVELAND, Ohio.—George I.

30, 1956, total operating revenues
of
^Houston Natural Gas Corp.
amounted to $16,773,418 and net

Natural

yields
attracting funds
redemption of savings

securities

obtained

brings
have

pro-forma

tax-

Pipe Line Co., which is
its main gas supplier
Houston Natural Gas Corp. will
become a more - fully
integrated

preshnlly

1956

cases,

Treasury savings bonds will be accelerated:

party, it is

cities, towns
presently

$1,405,905,

would have

Houston

some

party, according to some money market specialists, if victorious,

serves
the
requirements of the
distribution system of the City of
Corpus
Christi, as
a \ city-gate

income

the increase.

available

would

and

natural gas company..
For the 12 months ended

are

area

customer. Upon the acquisition

tinue that way until the final results

City to
population

1,750,000

and,

Election Results and Credit

Texas

approximately

corporate

—-,

The election is also

extending
through
20
counties
along and in the vicinity of the
Gulf

diffi¬

The upward trend in interest rates is also
having an influence
the owners of Treasury savings bonds because cash-ins of these

estimated

much

however, would ordinarily be going
feeling the effects of the high

the industrial

too

are now

available

are

that

without

Liquidation of Savings Bonds Increasing

by the
purchase

Refining Co. of

for

being financed

money,

channels, which

Pipe

Co.

this

all of the capital stock of Houston

Line

exempt obligations.

used

the

that the high level of interest rates is, how¬

now

movement

into other

time, unless previ¬

will

if
is

market.

bringing investors into the market,

culty.

the

tangible signs

ever,

expansion

1956. Each share is

from

stock

30,
operating

-A-46

very

nation's

ever,

are

per

dividends

accrued

any

June

Address.

also several other lines in

are

sufficient capacity to $ meet a demand
is not expanding as had beenN expected.

31, 1955. For the 12 months ended

Name-

that the

borrowings is as strong
with this competition for funds and the credit limiting
operations of the powers that be keeping interest rates high. There

ously redeemed.

and

learned, she earned.

just prepared

who

High Interest Rates Attract Investment Money

Corp.

convertible
par

holder into 2.9 shares

Flour
are

friend." She didn't know much about
but when she

small stock¬

few industries

The present position of the
money market is the same as it has
been: The demand for loans and
capital

cases

one

the

influence

offered

$26,000,000. All of the

;|1

to be

Qf tae demand for funds out of the
money

from The Atlantic

picture, Judy Holliday plays

not

are

capacity is already being felt,

likely to be a slowing down in some of the spending which is
being planned for the future. This would most likely take some

■

Nat. Gas Pref. Shares

company

In her latest

coming into
expansion will continue to be sizable in

large demand for funds to
capacity, whereas, on the
there is concrete evidence that capacity or supply is
catching up with or has surpassed demand in many instances. Up
to now, this roiling type of readjustment has not had too much

IS2llKfir§ Offer
SSfiSSSlM
wbiwi
iuv»e<0fcv«a

new

cut back this

securities

further maladjustments
n

"Why I would

SOLID GOLD CADILLAC

other hand,

formerly with A. M. Kidder

was

appears

some

On the

C. Muel¬

ler has become associated with the

share),

where

high rate and there

very

volume

currently prevailing. There

announced that William

convertible
tie-in

the

preference stock at

each

the

price of copper is showing signs
weakness, and there has been over-expansion in the production
feitilizers, while the farm equipment industry has
had enough capacity to meet the demand at much
higher levels

Wood, Struthers & Co., 30 Wall
Street, Ne\y York City, members
of the New York Stock Exchange,

5V4%
Contests

...

of textiles and

yesterday (Oct. 24) 100,000 shares

highlight

consensus

that

Girl's

The

demand and suppiy factors are
having or will have an influence on
the price of these products. The

friend"

Nonetheless, there

in which the increased

Posters

are

that

means

the foreseeable future.

best

will

This

tiie mancet to finance this

illac'

Dividends

level.

market specialists is that there

money

indications yet of any tendencies to reduce

spending.

and

sponsors

will

among

Over-Capacity in Some Industries

discovers in 'The Solid Gold Cad¬

which

and the recent increase in the Canadian discount
rate.

bearing the legend "Judy Holliday

at peak listen¬

change in our Central Bank rate in the immediate
future, in spite of the higher bill rate, this week down to
2.90%),'

Special promotional and educa¬

ture

Cadillac."

displays.
Direct

the

Wood, Strulhers & Go.

stock

ing hours.

tional

Gold

as
important as ever in
being made in these bonds,

;

Displays

cooperate by setting special lobby
displays during the run of "The

are

being reinvested in jiigher yielding corporate obligations.
The uptrend in yields on
Treasury bills, which has carried the
rate of return above the 3%
level, is creating some concern about

thatt'is

how to

Radio

interview

element

Some tax switches

•

ib»

picture, Miss Judy Holliday,
participate in a five minute

professional

are

& Co.

Plans have been set for the star

market

Wm, G. Mueller With

hig¬

)

rather

but because of the thinness of the market
they are not as easy to
consummate as has been the case in the
past. There are also re¬
ports of sales of Government bonds in order to get fupds which

personal

Movie

beamed

the

these securities.

are

panies is attached to the ad.

tape

come.

that

means

"Always

as:

help in in¬
vesting and other literature such

curvaceous

lady steppingTorth from a
cadillac, and in the upper left

Stocks

hope
more

are

her future for you."

young

corner

investment in better living, a

(see reproduction)

vivacious

investment in securities

tains its offices. These ads feature

and

forerunner of

involved, but millions of
people have found these risks are
worth taking. Chosen carefully, an

copy

where the picture

areas

will

and

showing and where Bache main¬

business,

risks

has been placed in the major met¬

ropolitan

kind

trading range, with investors showing a preference mainly
for the near-term liquid issues. The intermediate and
longer-term
obligations have only a modest amount of interest in them, which
narrow

effort, it is helpful to the entire

it will be tne
to

this

with

Governments

By JOHN T. CHIPPENDALE, JR.

keep this in mind about investing:
The price of any stock will go up,

Newspaper Advertisements

lead off

Reporter

The Government market continues to back and fill in

(And)

investors.

Art

Our

Capital expenditures continue

planned

and Cadillac cars."

partment may be of interest to
othqr advertisers who agree that
can

and

.securities

com¬

features

investment firms such as Bache

securities

Company

best

directed

Co.

Gold Cadillac"

an
t

the

effort
toward reaching a vast segment of
potential investors—the women of
America. When large and success¬

By JOHN DUTTON

Sales Promotion

advertising campaign
all

bines

added

Goodwin

sonic Building.

&
*

Joins

Lloyd Fernald

(Special to The Financial Chronicle)

SPRINGFIELD,

Mass.—Murray

Col-

the

staff

D. Goldberg has become connected

Co., Ma-

with Lloyd D. Fernald & Colv Inc.,
1387 Main Street.

Volume 184

Number 5580

The Commercial and Fino.ncial Chronicle

(1759)

cording to the "Newark Evening Hattiesburg, Miss., which i n in 1951. He is head of the
credit
of Oct. 12.
The paper in- August
increased its capital from department,
dicated states that it- was learned
$300,000 to $375,000 by a $75,000"
•
'* *'
>*•*-.
on
Oct.
12
that once
the
pro- stock
dividend, has further enLouis
posed merger of the two banks larged its capital by the sale of
goes
through,
West
Side
will $125,000 of new stock, whereby
international banking denartment
probably change its name to "The the capital as of Oct. 3 became
at the San Francisco head offW
Bank of Commerce" while continu$500,000. The August increase was has been named
News

News About Banks

President"^^Bank^of^AmeH^

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

Representative

CAPITALIZATIONS

°harter Th^"N?ws

Side

tirt

Exchange Bank

has appointed Cecil
to its
Grand Central

York

the

The

Columbia

Gas

System, Inc.
:

Board

Directors

the

montb*

Rock-

land-Atlas National Bank of Bos-

;

ton

Oct

Theodore

tofore
of

New

York

has

designated

heen

President

and

Trustee

Comptroller^ J.

the Deputy

Assistant

1946 and

named

was

Comptroller

joined

the

1951

Assistant

after

T
*

„

President

Company

nounced

Vice-

Manufacturers

New
Oct;

York

Trust

was

an-

by Horace C.
Flanigan, Chairman of the Board,
Mr. Duboff joined Manufacturers
on

Trust

Company in 1920. After a
series.of transfers and promotions
he

appointed
an
Assistant
Secretary in 1945. At present, Mr.
was

Duboff

assigned to the bank's
State Office, 350 Fifth
Avenue, New York.

Empire

The

♦

Bowery

The two-story office offers of

unit

the

Central

Grand

tion.

pointed

Subway

rv,ric?matt

I.,

been

ap-

same paper

"He

named

was

the

tomers

who

number

the

and

prefer

*
i

that

Federal

non-member,

The
*

Oct.

°f the bank

The

•

windows

are

First

de-

mpptincr

The

New

-Standard

York

Bank

South

■

the

Ltd., at 67 Wall Street, announced
Oct. 22, receipt of

its

eanital

de da

Warr,

advices from

G.B.E.,

bank

effective
*

Bank

fvt

that

recomfiiend
0f

the

bank

dividend to the

Oct.

LOUISVILLE, Ky.—Russell Eb-

k/t

?7LcerSLaib.J:r.,tbeA
■ p1**
^ne.
fl
„re^®2f
with
rwuISl
P®*®?*?*1

states»
e^cu"

National

Bank

the

„

result

is announced,

^eaf',

Jersey

th^v

tho

were re-

Jan.

4 000

dobn F'
Present

stockholders

and

declared

additional

by
to

Robert

the

shareholders

the bank
regular

17.

conditions
conditions

Warhnvie,,rrent

loans

were

for amounts under $5'000Charles

annual;

Matton, head of the

bank's trust investment division,
was elected Senior Vice-President.
Mr. Matton has been in charge of

meeting in January and the regulatory authorities, the dividend
will be paid on Jan. 25, and will

Wagner,
&

Reid

Ebinger.
L.

Homer

Reid and John
Ebinger

Spiers have

nounced on 0ct* 9 the addition of also become associated with AimtwQ members to the o£ficial stafl
lwu

incmucia

uuiuat

»tatt

CTPnT
gtedt

Mrn
Brothers

Sales

the

De.

of the bank- William D. Bramhall partment.
has ioined the staff as Assistant
vme.president
tached

been

at-

Willis

advanced

,0f

gank

serving

was

*Mr.

California,
as

WORCESTER,
Adams

ne
he

"«

now

Mass.—Henry J.
Gibbs & Co.,

with

Main Street.

507

Eastern

A native of Massachusetts,

&eles.

■>*"•*«

(special to the financial chronicle)

Assistant Cashier. Prior to joining
Tlle

With talbbs GL Co.

develop-

of the bank.

has

Warner

will

and

business

the

section

ment

Bramhall

'2?%?+
it
the credit
tne credit

formerly

principal of

Cali-

Ebinger

was

Joins J.-Vander Moere
(Special to The Financial Chronicle)

GRAND

RAPIDS,

Mich.

—

1932

-4-u

with

the

National

Shawmut
u

anty Trust Company of New York

Lvin*

their

New

York

ationai Bank Building.

Four With King

jrvjng

Merritt

(Special to The Financial Chronicle)

City

1941, whenjhe entered the U. S.

SPRINGFIELD,
serving in their New York city
London and Paris offices J^Mil D. Andrews,,
Navy.

cnaries c. conar ana

vvanen

the Andrews have become affiliated
York with King Merritt & Co., Inc.,

Mr. Warner was with
Trust

Co.

New

•

increase the shares outstanding to the division and of the bank's in^mina tn the Bav Area
Woodruff Building: ■ \ v
•
130,000. This will bring First Na- vestment portfolio since 1940 and Prl0r to coming to .the Bay Area nooaiuum^s
Westchester,
of
White
Plains, tional's capitalization to $3,250,000. has served
as Assistant
TreasN. Y.,
in charge of the bank's Surplus will be increased by an urer,
Assistant
Trust
Officer,
Tarrytown region, has submitted equal amount at the same time.
then Vice-President and Trust
This announcement is neither an offer to sell nor a solicitation
to
the
Board
of
Directors,
his
*
*
*
Officer prior to his new title,
of offers to buy any of these securities. The offering
resignation as an officer of the
The merger of the Rutherford^^ Robert
C. Merritt, formerly
is made only by the Prospectus.
Edward W. Hickey, Vice-Presiot
the
National
Bank
of

; come

effective at the end of De-

but he has asked to be
of his managerial duties
is practical. Mr. Hickey
will continue as a Director. Mr.
Hickey
has indicated that
for
some
time he
has been looking

cember,

of Aug.

as soon

page

President and Trust Officer. He
bas b?en a m.er?,be.r °Lth? tr.u8t

Garfield, N. J., proposals as to
which we referred to in our issues

relieved

forward to the day when he would
have more time to devote to his

J1"118.* °fflcer, was nai£?d Vice-

bank, it was announced on Oct. 18. National Bank of Rutherford, N. J.
Mr. Hickey's resignation will be- and the First National Bank in

Sept. ?8.
It was effected under
the charter of the Rutherford National

Bank

of the

National Community Bank

Rutherford.

under

the

According

title

ad-

personal affairs. "I will, of
course," he said, "continue to be

vices in the Treasury Department
Bulletin of Oct. 8, at the effective

available to the National Bank of

date

Westchester

whenever

the

consolidation

Offered

Issue

the

was.

sistant

resignation expressed his "great each, surplus of $1,500,000 and unpersonal regret" at accepting Mr. divided profits of not less than
Hickey s resignation. "I know that $650,187.
,
he
has
devoted
many
fruitful
*
*
*
years to the development of the
A merger of the Bank of ComTarry towns and to the interest merce 0f Newark, N. J. with the

eTected

Common Stock

Share)

(Par Value 10< per

As-

has

wn^bnvin

Price

$1.00

per

ne(^d wlth Wachovla

been
sinc®

Copies of the Prospectus may
A

The issuance of a charter for the
City National Bank of Coral
Gables, Fla., was announced by
the Office of the Comptroller of
the Currency on Sept. 24. The
bank

Speculation

J ^'

office, was
Vice-President.

needed."

consolidated bank had a capital
Ralph T. Tyner, Jr., Chairman of stock
of
$2,000,000,
in
160,000
the Board, receiving Mr. Hickey's shares of common
stock, par $12.50

Rnw

nnnno.tor

LITHIUM DEVELOPMENTS, Inc.

elfo]2?

2 -er™
^ iq^i
Jrust °ffl^er
h
JFox' member A A

g^Tte

600,000 Shares

^f.pay
i1
a --.in v ac o1v^a s
Winston-Salem offlce. since 1938.
,

16, page 691, and Aug. 23,
793, became effective as of

and

New

has

been

formed

with

be obtained without obligation

undersigned or such other registered or licensed
or
brokers in securities in this State who may be
participating in the offering.

from the
dealers

GEORGE A. SEARIGHT

the

National

Bank

West?

■

"esf

Side

Trust

Co.

also

Chester and its predecessor, Tarrytown National Bank & Trust Co."

Newark,

Mr. Hickey had been President of

by the directors of both banks, ac-

has

been

capital of $500,000 and surplus
of
$250,000.
The
President
is
Robert M. Altemus, while Allen

Member

New York Security

—

-p

Abess, Jr., is Cashier,

recommended
The

First

National

Bank

Dealers Association
■'

115

Broadway

Mo.—Mrs. Helen

dent

•

Degan his
nis banking
DanKing career
caieer in
rC. t2,e
Al stfff
T
began
in Fufe"e C,ookT,]ias "j°oin2,d
&
r, Co.,
rn Peoples
Pennies
of T Vhn^r
Vander Mnere
Moere &

moo

1Aor7

the

their

department.
Mr.

f.nd nJoney markets would con
^lnue f®r sometime to come, with Bank of Boston. In 1937 he joined
^fntp(?en^f2hat0q'?2^ fn nnmhpr the foreign department of Guar-

This

next.

Bank

of
trading

the

Bramnan was serving as n,asiern
and Trust Company of Winston- representative of Farmers & MerSale™' N- c-» held. on Oct. 9. chants National Bank of Los An-

of the directors of Wachovia Bank

haH

chare-

that

The

n?)"

the

1 a

Board

Ex¬

manager

Russell

record

dividend

the board of the

from
*

and

ABmstedt Brothers

San Francisco, it

Ebinger With

insured
under the

lrom $200,000, eitectiva Sept. 19.

ing that the directors of the bank 50 cents quarterly cash dividend
,have appointed the Rt. Hon. Earl now being paid. If approved by
,

Russell

Stock

^ °.^hat :™S' .?n tl?«In°nnn
bp
v^«^nt

will be the third consecutive stock

its head oftice in London, indicat-

vAnnan to seats

-j

change,

merged
the
Fidelity

Duluth

additional shares of $25 par value
stock be authorized to be declared

Africa

Agency

■

]10iders

*
'

211:

city, N. J., announced after their

^day between 8 a.m. and 6 p.m,
*

National

votpd

banking

every

open

representative

™ne years, will spend much of

to its capital as a result of the

by the First National Bank in
Greenwich, Conn., as of Oct. 11,
the amount having been increased
from $400,000 by the sale of $100,-

savings

subway

banks

System
Company of

Duluth, Minn., has added $50,000

«hcnn

the

W!>r'

*
v

Reserve

Trust

Indianapolis, Ind.,

,?aplt?. °. $500,000 is reported

posits without leaving the subway
station.

the

bank's Executive Committee charter
of
Trust
to replace
Clayton D. Sheldon, Company
and
the
new
title
who, under doctor's orders, must Fidelity Bank & Trust Company .
relinquish the post. Mr. Sheldon as of Sept. 1, according to advices
its industrial and commercial cus¬
will continue as a Vice-President Oct. 6 from the Board of Govtomers.
of
the
trust
department.
The ernors of the Federal Reserve
Committee also elected E. Sheldon System.
*
'
Elliott McAllister, Chairman of
Spicer Jr. to the position of As-

cus-

make

lished

Wells, Vice-President
East^rn representative of

Bankers

the

Sta-

from

and
Crocker - Anglo National Bank,
^bonal Bank oL Dover, will be assigned to headquarters
'

subway unit opened
*
*
*
on
Sept. 26, 1955,. with two sav-.OOO of new stock.
Marked third quarter increases
ings windows. This third window
*
*
*
'in deposits, loans and business
will enable the bank to give faster
boarcj 0f directors of The volume over the same period last
to

»
n

-d

the

From

officer

senior

also quote in part

follows:

Oct.

has been

charge of its trust department, according to the Providence

This

service

the

bank in

"Journal"

i95\to San Francisc°? where he

n°m* New YnrT^.0 nf th. hLJ ft i^ger has become associated with
$300,000 to $350,000 as a result of Neu York office of the bank, at
AlrhstedtBrostock dividend of $50,COO. .
tLhIf
/J
thers\45 West
wC<i?"
Market Street,
*
*
*
+1'
m1"'
e *
members * of
The Fidelity Trust Company of
s bejrn the bank s repre- I
the
New York
Indianapolis, Ind., a state member sentative in i\ew YorK tor tne past

trust officer

has

increased:

*
i

-d

ce and C ristmas

„

Supreme

Vice-President

mezzanine

■

sistant Cashier."

Bank

of the Industrial National Bank of a

Savings

ln^n CpTOipA'anA

tnrv

*
a

;

$1,000,000,

checkfn" accountf'nSht dLoS. "eW

Ohio, reports

^0,000 by the sale of $250,000 of office in Milan shortly after the

■Curtis B. Brooks,

New York opened another savings
window on Oct. 22 at its subway
savings

Massachusetts

Providence,

Assistant

the

Court.

appointment of Louis

Duboff

Comptroller's Depart-

ment.

The

Cashier
an

the

E^ectu6 .Sepi'JarFers international banking department,
& Merchants National Bank of In Italy Mr Vinci will be assor<rported 5 caPltal "auted ™?th «a™ Roh who etstab"

Association

Stewannounced

career at

FfeZSJ-

Family
Service
art Baker, President,
Greater Boston, Trustee of the
on Oct. 23.
Mr. Bardusch's promo- Massachusetts Savings Bank, etc.
tion follows 27 years'service with Mr.
Chase
succeeds
R.
Ammi
the bank. He joined the staff in Cutter, who resigned to accept an
1929, was appointed to the official appointment as Associate Justice
staff

S °tSs„' ^ f

the

new St0ck;

*3*

Assistant

cllWK*'

nA„,

banking

Anew suburban office of Fidel-

Chas^

Bardusch, here- member of'the firm of Palmer
Comptroller Dodge Gardner & Bradford, was
The Chase Manhattan Bank, of elected
a
new
director.
He is

Frederick

ternational

As of Oct. 1 the Bank of the San Francisco head office in 1940,
Southwest National Association of Mr. Vinci was appointed Assistant
Houston, Texas, increased its Vice-President and assigned to
$10*000,000 1° $12,- the Tokyo Branch in 1950 after
500,000. Part of the increase was three years as Assistant Manager
brought about by a stock dividend in Manila. Transferred to take
$1*000*000,■ and a:n additional charge of the Bangkok branch in
$1,500*000 resulted from the sale 1951, he returned in November,

Tarrytown

Trust Company from

director

has announced. Beginning his in-

•

Nationa# Bank &
The merger, recommended yes1§49 through terday by,the board of directors
E. Loomis
Dec. 31, 1955, when the bank con°f eacb bank,■ mustc.be approved
Area Advisory Board, it was an- solidated with the National Bank ky the stockholders and also by
nounced
on
Oct.
19
by Harold of Westchester.
State Banking Department.
H. Helm, Chairman.
Mr. Loomis
*
*
*
^Stockholders' meeting to pass on
is
a
Senior
Vice-President
and ; At the regular meeting of the
proposal will be held next

of New

Corn

!» Italy"

further 886.

n»rt-

Chemical

Sat" * °Ur AUS' 3° ^

further

New

York 6, N. Y.

The Commercial and Financial Chronicle

(1760)

industrial

that

Impelling Atomic Power Factors
As Britain Faces Oil Crisis

construction.

LONDON, Eng.
months

—

automation received

the
as¬

pects of atomic

energy

the

come

ter

be¬
cen¬

discus-

sions,

17th

t te-Rtidrf to

this

aspect

When

Elizabeth

Queen

the electronic current

generated by the

new

sta¬

power

tion Britain became the first

coun¬

of British atomic power pro¬
duction.
It mad&* HrTtish opinion
up

Middle East
oil in particular. Even if it should
be possible to come to terms with
President

the

British

additional

added

the

systepi electric

nationalize^,

suooly is

power

this

atomic

source

electric

a^d

simply

power

gen¬

erated

by steam, diesel engines, or
hydro-electric power,
i
The Calder Hall power station
is the

first

under

construction

which

number

planned.

1957

Britain will have at, least
atomic power statipnsjunder

seven

construction
of

cost

estimated total

reason

nearly £200 million. The
why this effort to harness

atomic

energy

for the generation
of electric power for commercial
purposes is of specific importance

Nasser

Suez

about

Canal,

The

the

there

the possibility of

crisis.

Under the

oil in general and on

ity that is generated by

dangers arising from
dependence on imported

Britain's

ways

station nationally available.

the

realize

try in the world to make electric¬
power

likely to
speeding

the

towards

hydro-electric
also

are

expanding

power,-generation

limited.

Apart from

the

free

hearts

You

cannot

from

Middle

the

na¬

East

The British

Government would

feel

obliged to proceed
energy
production

atomic?

with

if it

even

were

not

commercial

will

the

In fact the cost of
generation by atomic en¬
in Britain does not compare

The distributor

been

companies have

concerned

and, •' perhaps,

have been compelled to pay to get
new

supplies which

gas

high

economic

points

nation
intense

under

fire.

want;to know why
the pipeline companies
are
un¬
willing to go-before the Federal
Power Commission in producing
rate proceedihgsi-and oppose these
clauses. But are the pipelines in a
position to oppose a provision of
a
contract
negotiated at arm'slength?

Retention of Gas by Producer

firmation
be

generation,
Plutonium

ered.

atqmic

consid¬

create

can

heat

industry is faced with some
requiring fine judgment

their

that, owing

be borne

in mind.
all

the

diverted much

has

ready

prospective
from

sources

interstate

by¬

product is still conditional on the
solution

of many

scientific and
technological problem. Should
present expectations materialize,
it should become possible in the

difficulties

not too

the

methods

unless
power

alternative

generation

are

developed.

A number of diesel
stations have
also
been

power

built

are

under

construction,

but

they
will further increase
Britain's dependence on imported
oil.
Britain's
In

the

ernment felt

with

the

power

Future
the

impelled to

development

the

Government's

has been criticized

atomic
many
pro¬

not be¬

well

below

the cost

alternative methods of generation.

supply

markets

into

the

empire has sprung up and is be¬
ing built in gas producing states
on
gas for power, for fuel, and
materials

which are already
consuming tremendous quantities
of natural gas. I
have heard it
raw

said

that

would

impossible
for the producing states to attract
enough industry to seriously af¬
fect
gas
supply
for •' interstate
markets.
The experience of the
gas purchasing departments of the
pipeline companies does not find
this

100%

stay-at-home
ready and
serious

accurate.
has

movement

will

continue

deterrent

The
al¬

procurement

Pf adequate supplies for interstate

readily be

aluminum plant and

seen

that

one

chemical

one

Texas

daily

now

more
natural gas
do all of the homes in three

consume

cities

than

large

combined.

future, this
development is of the utmost sig¬
nificance.
Lack of cheap hydroelectric

resources

constituted

ment

industries.

relatively
would go a

sisting

major

has

The

substantial

cheap

long

British

develop¬

supply

atomic
way

always

handicap

power

towards

industries

as¬

face

of their manifold difficulties dur¬

ing the postwar period.

The fears

companies
have
by
no
gobbled up the reserves.

means

last:

gas

all

wholesale
the

over

natiori

enlightened

The

"Plenty of

is available for

gas

self-interest.

Independent

Natural

Gas

sources

have

practically all
new
supplies

that

are

been

from

difficult

ob¬

tain.

state.

fact,

the

that

dent's

trade publication

dealing with natural
item

some

show
is

the

effort

momentum

industry
and

into

sell

contains

collectively

concerted

gaining

new

areas

gas

which

entice

producing
locally.

gas

President's Veto

and

Transparent

Consumer Victory
A
der

tremendous

way

campaign is

the

gas

ment

tioned.

which
For

have

un¬

producing

states,— the stay-at-home

move¬

just

men¬

instance, the General

Manager of the Houston Chamber
of Commerce
before

the

New

recent

York

address

the

opinion

effect

net

veto

the

holds
Presi¬

Harris-Ful¬

the

individuals

and

with

fixing jurisdiction of the Federal

The

Commission.
'consumer'

Those

who

won

vic¬

tive of

very

large

concern

listed

that

tween

the

good

want

marks

the

veto

His

paper

his

assure

you

sense

attack

to,

upon

though

mediately

Longer

'"Under

normal

than

50%

produced
used

Distress

the

Local

States

markets

are

terstate markets for

can

for

him

makes

his

such

gas

reluctant

markets.

cause

was

distress

product.

they are en¬
aggressive
com¬

and

holding down price. It

consumer

price

to do

This

task

gas

one

once

area,^

increase is reflected

done

purchaser bids

mediately to all other
is

so,

price advantage

level.

easier if

the

early days the pipelines bought
gas, in fact, all the gas they could
transport, at very low prices be-

atmosphere

their advantage

for such

commit

is this fa¬

that

pipelines,

made

charge the prices agreed
interstate markets,

pipe¬

successfully

batants in

This, coupled with the
producer does not know wheth¬
he

preserve

atmosphere

can

order to maintain

supplies.
fact that

new

upon

can

important

economic

seg¬

thusiastic

quite regularly outbidding the in¬

other

the producers

economic

vorable

circumstances

of all natural gas

the United

locally.

the

only

companies

survive.

Product

Al¬

contro¬

in which to operate that the

Gulf Coast."

either

favorable

have

market.

the distributors

and

the

who

industry ultimately
all, the pipeline is im¬
affected by the prob¬

ments. It is

line
Gas

business

the

affects

lems

the

problem

any

be
the

entitled, " "Re¬
in

this

producers
have

re¬

Harris-Fulbright bill.
was

supply and the distribu¬

who

versy

for Petrochemicals

sources

Texas

the

gas

tors

were

construed

long second
picture before

whole

the

part

am more experienced.
pipelines are in a somewhat
peculiar position, they are
the
middleman or connecting link be¬

better

the

which I

tory with the President's veto had
take

My remarks, however, are from
view point of pipelines, for

the

candor.

Pipelines'^Dependent Position

extensive

will not sell to inter¬
state suppliers because they re¬
fuse
to
come
within the price-

while

im¬

That

areas.

the

for

competition is great—it is greater
since
It

the

Harris-Fulbright

must

remembered

veto.

that

ac¬

„

quisition of

reserves

through

con¬

tract
proceedings
has
become
often
heard
pipeline"
competitive
since
each
distribution people say highly
pipeline is aggressively trying to
that they provided a market for
obtain those reserves for its own
gas which might otherwise have
benefit as well as for those whom
been wasted.
1
they serve. I do want to reiterate
While at one time this was true,
—it is to the advantage of the
it
should
not
be
permitted
to
pipeliners
to maintain competi¬
cloud the issue today. We cannot,
tive price so we can successfully
nor are we entitled to expect any
survive. In this, we all, including
special consideration or conces¬

have

You

people

sion

from

this

ciation

this

other

any

industry

solely

sense

segment

from

entered

appre¬

obligation.

solely as philan¬
cooperation
and
consideration by one segment to¬
The

another

must

recognition

could
we

exist

are

that

without

the

based

none

the

consumer,

mutuality o£
\

think

are

realists

who

recognize the facts of life. There
will always be occasions for con¬
flicts

interests.

however,

No
occasion,
be permitted to

should

arise when any part of the indust-

permits circumstances

ditions

point

ness.

the

and

fundamental

interest.

others—■- try

all part of the same busi¬

investor

have

continue

business

thropists.

which

overwhelm

where
tend

actions
to

harm

con¬

the

are

taken

the

whole

We are a big industry and are
daily growing bigger. I want to': industry.
'
emphasize one consideration
Harris-Fulbright Controversy
which must always be kept in the
Nothing has so strongly pointed
forefront of our thinking. We ai1>.
up,
as
has the Harris-Fulbright
a
public
service
industry, and
everything we do must be evalu¬ bill, the necessity of improving
understanding among those en¬
ated in the light of high public
gaged in the different phases of
service. As responsible business¬
the natural gas industry. Not ohiy
men, as responsible citizens, we
the public, but the industry was
cannot afford to ignore our duty
left
badly
confused
from
that
to the public and to each other.
.

controversy.
A

This

"A few yveeks ago a representa¬

utmost

gas reserves

Society ol

Security Analysts said:

represents
producing
companies, " pipeline
companies, and distribution com¬
panies,
so
I
can
express
my
thoughts
objectively
and
with

bright bill will be to make more
supplies available,for sale within
TexaS^'Several - large companies

ward

Almost every

Association of America

industrial development within the

None

Indications

Regarded from the point of view
of Britain's industrial

British

Gov¬

press

generation. Indeed in

quarters
gram

Industrial

circumstances

power

generate

our

expanding markets
being developed within the pro¬
ducing states. A new industrial

distant future to

tremendously

The

poten¬

plutonium

increasing difficulties
satisfying the manpower re¬
quirements of
coal
mines, the
country might find itself in grave

with

course

actor

to the limitations of coal resources

un¬

derstanding within the industry
imperative. The leadership of the

costly.

utilization

•

congratulate themselves too

enterprise

tialities

feet

The point is,
long-lines transmission
*.

years.

the

much."

cooperation and

million times its weight of coal.
The possibility of feeding this val¬

must also

recog-?

unique opportunity and
perhaps obligation to perform an
educational job at both ends of
the pipeline? This is both an op¬
portunity and a challenge which
we accept in what we consider an

to
Within

they

make

potential water power,
and the construction of her hydro¬
electric
power
stations is very

full

cubic

have

which

with

volved lies in the fear

than
hard

easily

year
by the
large distribution
the
pipelines
who

distributors

Houston

ture

which produced it, thus re¬
ducing the uranium requirements,

the

look

realized

uable by-product back into the re¬

said

deliver

and

day

offering solutions; I
illustrating the prob¬
lems with which the industry is
faced
and
suggesting
reasons
merely

can

contract

commitment

million

three

that

think

not

to'} determine

possible to extract
heat equivalent to that extracted
from 10,000 tons of coal. This fig¬
ure
is of course subject to con¬

could

delivery of not less

gas

with

Power

States

very

'fairly ambitious scale in spite of
the heavy capital expenditure in¬

•

when

The only reason why they
proceeded with on a

Many

distributors

markets. This

been

have

clauses

respect to the intricate problems
methods of, generation. created by federal /epilation of
estimated that from each ton producers. : This
regulation al¬

power

any

something
is

utility
that
purchase gas from the producers

inquired

Board
firm

his

natural

300

Escalation

production.

favored

and

equivalent to that created by 300
times its weight of uranium or by

have

the

ternative

course

"You cannot legis¬

ItJ is

Highlands, Britain is not
generously endowed by Na¬

Scottish

have

now

value

unfavorably with the cost of al¬

the

it;

but it

; It was
president

100 million cubic feet

area,

critical at the prices the pipelines

decisions

minds.

free

and

buy

co¬

come

nized when it exists.

for immediate

•

ergy

duced

only

can

cooperation

define

Big

•

whether

tive must be offered,

entire

of uranium it is

the

than

proposition.

The

cannot.

sometime ago!:

finding additional sources of nat¬
ural gas, and an economic incen¬

power

It is

know

it" must be
freely given; As so aptly stated
by the Chairman of my Board

page

suppliers' good
cooperation in

active

and

new

oil must also be envisaged.

therefore

maintain

al¬

some

by practical experience
gained in the course of op¬
in Britain lies in the inadequacy erating the Calder Hall power sta¬
of the means for alternative meth¬ tion, but is believed to be substan¬
ods of power generation. Britain's tially
correct. ? The- present-day
coal mines are a declining asset. •cost of 10,000 tons of coal is four
Even with the aid of a costly in¬ times as high as the cost of one
vestment program the nationalized ton of uranium. Even allowing for
coal industry will hardly be able other factors entering into calcu¬
lation it is expected that from a
to keep pace with expanding coal
requirements. British coal exports commercial point of view atomic
are
down to a fraction of their power generation will prove to be
prewar quantity, not for any lack profitable.
of foreign
markets but because
By-Product's Value
domestic requirements must have
Moreover, there is also the value
precedence. Indeed in recent years
Britain has become a large coal of the plutonium by-product,
which will be automatically pro¬
importer.
vPossibilities

from

use

possibility of the

tionalization

ap¬

ing the burdensome, item of .fuel- provided a ray of hope amidst the
imports. It is no wonder that the gloom of immediate difficulties.

come

contribute

at-

"technological
on

■

The Suez crisis is also

t r.:a c ted pew

progress.

speed

ects.

Oct.

switched

de¬

atomic

power

and

needed

Mutuality of Problems

world's first

Calder Hall

Einzig

Government

understand

operation

•- *

future

industry

preciate the other fellow's prob¬

given

late

plans
of atomic power generation and to
supplement it by additional proj¬

station

Paul

industrial

the

lems.

balance

character."

which

rise of a wave of muchneeded
optimism in Britain.
It

of pay-r
could be relieved by reduc¬

Continued

the execution of, its present

The.

output -amounts

not

only to 92 megawatts, should have

the

opening of the

Dr.

extent

within

itself. The real question is can we
afford

the provision of this al¬
ternative power supply.
There is
every reason to expect that one of
the- effects of the publicity given
to the opening of the first atomic
power station will be an increase
of the pressure of public opinion
pends

the

now

turn

economic

supply could'be

cooperation

Hall -power station,

maximum

whose

In Natural Gas

the

Britain's

fair amount

of tbe. Calder

Last but by no means

Britain's

regard

British Press.

in the

attention

aspects

psychological effect of the opening

ing sufficiently ambitious, having

During recent

economic

the

might

Halt foiKlaeK

power

eliminated.

ments

Jeopardy to oil arising from Suez crisis and Middle East
nationalization possibilities, and exhaustion of adequate coal
resources, are some of the factors^, hastening harnessing of
atomic energy for generation of electric power in Great Britain,
according to Economist Einzig who reports that by 1957
Britain will have at least seven atomic power stations under

expansion

come

adequate

least,

By PAUL EINZIG
-

have to

Thursday, October 25, 1056

...

again
way

Challenge to Pipelines
is

roundabout

suggesting

way

The

and seeking a
for better understanding and

volved
the

business

industry

troversy

largely

interests

itself.

served

■

controversy

any

in¬

within

the

con¬

useful

pur-

Volume 184

derstood

$58,755,000 Issue of

un¬

The

Philadelphia Bonds

problems of each other.

One' thing, however, stands out.
Public charges of unfair practices

Af,

■

Offered to Investors

brought by one part of the indus¬

consolidated

underwriting
a combination of 4s, 3Y4S, 3%s, 3V2S and Is,
representing a net interest cost

Company, St. Louis; Continental
Illinois National Bank and Trust
Co. of Chicago; and Dean Witter
& €0,
/Vi,"*v i *'

of 3.4527% to the City of PhiladelPhia- ->

Associated with Lehman "Rrot^-

bid 100.0399 for

group

sympathy

been

(1761)

show that

it was to

the

with

The Commercial and Financial Chronicle

...

industry have not

the

all,

pose

Number 5580

The bonds are being reoffered at

■■■■.<

,v syndicate formed by the conprices scaled to yield from 2.40%
solidation of a group headed by to 3.75%, according to maturity.
consumer just will not accept the-The Firsts National City Bank of
,
Associated with The First Naexplanation that he is dependent New York- (as manager),: with, tional City Bank; Halsey, Stuart
upon,
three
different
interests. Halsey, Stuart & Co. IncvatndThe & c0. inc. and The Philadelphia
NatxiiaPgas to him means the natiJ1 Philadelphia National Bank -sS«as- National Bank in the offering are;.
ural gas industry.
*
sociate managers, and a group ^Harris Trust and Savings Bank;
When the Independent Natural
managed; jointly-- by; Lehman p. J. DeVihe & Xo.; Goldman,
Gas Association started its Pub-/v®*Ptfeer$ and BlythCo, Inc., Sachs
Co.; Salomon Bros. &
lie Information" Program several '"®^^23^w^ awar4^ an issue of ; Hutzleb;. The First National Bank
years
ago,
the stated objective $58,755,000 ,. City of Philadelphia, 0f Poftlaiid- Oregon; Blair & Co.

dis-

against another tend to
the
entire industry.

try

'.was:

The

credit

industry

gas

—

and

jujy j

by disseminating

Bonds,

Incorporated;

1958 to 1932,.inclusive.

Stone

Webster

Corporation; R. W.

Pressprich&JCo.; Mercantile Trust

J,o The Financial Chronicle)
CORAL
GABLES, Fla.V
Herbert' C: Hess * has * become • af-\
filiated
with
Goodbody, & Co.,

ers and Blyth & Co. Inc. in the qffering are—Phelps, Fenn 61 Co.;

2148 P®nce de Leon Boulevard.

Northern Trust Co.; Lazard Freres

Joins Sutro Bros.

&
Co.;
Glore, Forgan &* Co.;
Stroud & Company Incorporated;

-key

WEST,

now

Fla.—Guy

with Sutro Bros. &

Concha

Hotel.

Fla—Wallace

nowwith

ENGLEWOOD, Colo.

Western
333

Price & Company, 513 Fleming St,

States

—

—.

——

•

'—

—

——

—

ing

information to the pub¬

lic

would

whole

the

about

industry

informing

also

within

the

other's

problems.

7industry

those
each

Perhaps

this

direct
*

has

often

said,

been

that good public relabegin with, good industry,
v
V
W

tioiis

;

think;

and I

correctly,
relations.

•

premature or too in-;
achieve, this purpose. It,,

program was

■

•

',-7

In passing, I. would like to-in-;;
your attention the next time you are
in Washington jto view
T
the. all-industry exhibit ..we are. ' ,
;

vite
-

;

sponsoring at the National Housing Center. This exhibit is .placed
near
and, coordinated .with
thesection
displaying
gas
burning \

s p o n s o r e

relief

color

large

States, showing

producing:

and large:
believe

•.

Exhibit

All-Industry
When

hibit,

I say an

mean

trance

few brief

lines, gives

ex- '

well

cannot

as a

•

lightly. It states:

natural gas industry prethis exhibit to portray- the

sents

afford

"The

;

bird's eye

the industry

take

...-

The ex¬

just that.

which

pledge

7
.

this

view of

...

•

all-industry

statement at the enexhibit, in a very

planatory
.

•

-•

map

...

;

probably the most0 complete.
of its kind in existence.

•

a ^

the.

map

distribution"-centers.

major pipelines,

United
areas,

exhibit

the

the- features, of

Vi;
',.

the

American Gas Association. One of

appliances

magnitude of the task performed
in the public interest, in
main¬

continuous supply of
to the 90 million gas
burning appliances in homes and
many
thousand industries. Tnis
great public service by the na¬
tion's sixth largest industry suptaining

natural

gas

plies the fuel needs of over 100
million people. The industry will
times endeavor

at all
and

improve

its

Heat

service

No. 1

Highway

to continue

the

public."
Needless to say,

quires

entire

the

that pledge re¬

cooperation

active

the

natural

gas

Tennessee Gas... the nation's

longest pipeline!

industry

because it is impossible of fulfill¬
ment

the

larger the industry0 grows,

branch becomes upon the

others,

problems of

morfe

Piping nearly two billion cubic feet daily

one portion
impinge upon and

of the industry

across

responsibil¬

2200 miles
TENNESSEE GAS Has What It Takes

mountains, rivers, swamps, forests .from the

gas-producing Southwest to the fuel-hungry East.

the public and

nation, we
problems
for the industry as a whole. This
does not imply that any segment
to

endeavor

Journey's* end

better heat for millions.

power
gas

Nature's finest fuel

the

established.

gefteral

brought to market by the most economical

dependable method of transportation

—

the pipeline.

in 29

through

"and

remain..strongs I

principles and develop a wholehearted spirit 6f *
cooperation
a (m o n g
ourselves,
we

there

can

meet

E S SEE

much

better

basis

•

...

•

for

AM ERICA'S_LEA

\
-

«r-

DING

...

expects

ten!

G A S

TRANSPORTER

fields*

increasing

C O M PA NY

agree on

approaching and settling specific
problems
to
our
mutual
advantage.

T E

TRANSMISSION

problems. I sincerely believe that
if

system

creased its capacity

have

NATURAL

natural

gas

★ 550,000 horse¬

stations moving
-fr

Vast

under¬

assuring ample supply in winter.

unity and cooperation within the
industry if we are to continue to
grow

compressor

the

★ 9000-mile system

storage

purposely avoided specifics. Most"" ''
of
you
are
familiar
with
the
mounting unsettled industry

feet

markets

years

propositions

cubic

in 201 fields

ground

and

',My remarks have been directed "
to

Keep You Supplied

trillion

of underground pipeline

give up its~free bargaining
position, but rather that a sounder
basis for doing business with each
be

tIr

reserves

solve

should

other

...

;

dij^ctly affect another por¬

tion. Ill fulfilling our

must

of 18 states,

Ontario, Canada.

the District of Columbia and Province of

its responsibility to
public, and the more depend¬
greater

ent one

ity

Hauling natural gas used in the homes and industries

by any one segment alone.

The

the

—

Albert

Management

East Hampden.

thought that by present¬

was

G. Eckerdt has joined the staff of

James

Co.,

Joins Western States

Carle-

(Special to The Financial Chronicle)

WEST
is

r *

(SpeciaitoTHErm/vNciALO;iRomcLE)-

Brown

KEY

ton is

Joins James H. Price*

(Special to The Financial Chronicle)

Equitable Securities Corporation;
Paine, Webber;*Jackson & Curtis;
Estabrook & Co.; B. J. Van Ingen
& Co. Inc.; L. F. Rothschild & Co.;
and Ladenburg, Thalmann & Co.
.■

vioodbody Co.

(Special

information."

factual

Obligation

due Jan. 1, 1958 to 1987, inclusive;' S e c u r i t i e s

»•

•

General

Pa.,

■

to maintain good public
relations Tor the entire natural

With

GAS

HOUSTON, TEXAS

near

consuming

demand,

TGT^in¬

8 fold in its first ten

double

this

the

Co.,

(1762)

The Commercial and Financial Chronicle

Continued

from first

automatic controls

new

page

and

water

Gas Industry's Expansion
Now and in the Future

tors,

dryers,

half

air

million

before

Promotion and Advertising

great natural
gas pipeline systems $ brought to
us
the wonder fuel, natural gas,
our

and breathed

into

what

One

called

promotion,

dying

search.

industry.
How

back

year,

many

1945

think- been

ever

when

boasted

our-

most

projects has been

Blue Flame of life

some

These

our

program

advertising,

and

re-

devoted

have

try

activity,
helped
us

gas

cite

are

devoted
of

advertising
under

year

the

The

will

tremendous

will

history.
I
am
more
than
gratified to be able to
say to you

available

today that the goal set bv the Na¬

information

and

Public

tional

Re¬

aspects of the Program.
Gas

Industry Development

and

Directors,

$2V4

scribed,
than

Television

endorsed

million

which

the

sary to

advertising and promo¬
tional theme by the manufacturers
new

Industry
and

Board
Over

assisting the industry in solving

and utilities of the

Gas

Committee,

by the

has

been

reached.

common

condition-

air

well

our

many perplexing problems. Some
of the most important include a

exclusively to the subject
year-round

1957,

will be represented
television for the first time in

present

Committee has taken the initiative

making here. Our
Progress" luncheon

Wednesday

materials

Research

lations

addiI

PAR,

the

spending

thousands

to
for

meeting

this

dollars

not

"Pattern

than $21 million have

this

tional dollars in this field.

advances

Now in its 12th successful

dollars

tation of the sales, promotion, and

our com¬

devoting nearly

manufacturers

hundreds

outstanding

meetings also featured

conditioning research, with

several
came

are

Television

Program in ten demonstration
cities throughout the country. The

heaters, refrigera¬
house heaters, and

incinerators far ahead of

petition.

.Thursday, October 25, 1956

G. I. D. Committee's Fifteen-Point

high

Btu speed burners have placed our
ranges,

sub¬

now

slightly

minimum

quota

more
neces--

give the industry the best
possible for the money

coverage

expended—and there

revo¬

are

approxi¬

mately 17 million, or about twolutionary automatic top burner
heat control, consideration of the thirds, of the entire residential gas; ing spent by our competitors for
and I am sure that includes each
meters in the country
represented
need to set up scholarships to de¬
advertising and promotion.
one
of you — should attend this
in this program. It is
truly a na¬
This year our national advertis- luncheon. Those of us who have velop technically trained gas en¬
tional program, and all will
bene-!
the creation of our Post War Plan- ing budget for the first time will
been working on this program are gineers, and greater cooperation fit
either directly
or
indirectly
ning Committee back in ; those exceed $1 million. Not all of these
by gas utilities in the field of test¬
very enthusiastic about the great
since it will be going out over one
days. That was when one of our dollars will come from the PAR
ing newly developed appliances.
possibilities of the air conditionhundred or more major TV sta¬
leading statistical, services pre- fund.. Nearly a quarter of a miltions.
To those of you who
ing
market.
We
are also alarmed,
dieted that the future of the
are;
/
Automatic
Ignition
gas lion of them will come from our
not yet subscribers—there is
believing that the fuel that capstill
industry was behind it, and that friends among the gas appliance tures all-home air
An
important action endorsed time to
conditioning
get
on
the
band-wagon.
with the conversion from war to manufacturers
through
space- will also
capture the heating load, by several committees and by our This is a tremendous promotional''
peacetime ecdnomy, the gas in- sharing cooperation.
Board of Directors was that auto¬
The applieffort, affecting the entire indus¬
dustry would have no place to go. ance
matic lighting be made an A. G. A.
manufacturers
should
be
Public Relations
try.
commended for their wisdom and
requirement
for
all
There
is
One of the most
another, and newer mandatory
Record Breaking Future
pleasing things
foresight in recognizing that all component of our PAR Plan that burners on residential gas ranges, about this
activity is the fact that
Investments
and that the requirement for auto¬
0f us are in the gas business to- I
would like to call to your attenthree important segments of the
Today, our industry's invest- gether.
matic ignition of ovens and broil¬
tion. It is our PAR Public Inforindustry — utilities, transmission
ment in plant and
facilities, toOur promotional programs have mation or Public Relations Pro- ers become effective Jan. 1, 1959.
companies, and manufacturers—:
gether with other assets, totals achieved national prominence. Our
The
plan for automatic ingition have joined together to
gram.
carry out
about $17]/2 billion.
These assets recent Mrs. America contest was
of
all
this
,Jn the hectic hey-day of our
gas range burners
is not
endeavor.
This is the first*
are
increasing at a rate, of about shared by more than 100 utility
new.
time
Ijt^y/gs
there
has been such
growth, we have tended,tp takef
starred in 1936 under
unity of:
$1 billion a year. Before 1960, we companies and promises to arouse
the CP Range Prograjn. But I in¬ purpose in a national
public Understanding and support
promotion or
will have become „a,, $20 billion
even greater support next
vite your particular attention to
year./
for
granted.
We
have
assumed
advertising plan.
industry and in about a decade
I
had
the pleasure-of
being that our employees, our customers the fact that during the interven¬
Negotiations are under way to
and a half, we will have
quad- present at the finals of this out- and our communities knew and ing years the sale of
completely purchase a program to represent
rupled our gross assets.
automatic
standing event when Mrs. Cleo supported our needs for adequate
lighted ranges, at the us to TV America and may be fi¬
with

modest

pride that gross assets of the gas industry were in
the neighborhood of $5 billion. We
forget the urgency that brought

match in part the huge

sums

be-

ing. Everyone who is interested—

proud of this growth— Maletis was crowned this year's rates, franchise^ and financial exonly the beginning. Dur- Queen of American homemakers. pansion.
ing 1956, gas utilities and pipeline Her graciousness, abilities, personThe awakening has been paincompanies will spend a record- ality, and intelligence will make ful. * The - treatment
given
the
are

and it's

breaking
new

of $1,600,000,000 for

sum

construction

and

striking impression wherever Harris-Fulbright Bill by the press,
sbe appears.
the
growing trend toward muThis year's Colgate-Palmolive nicipal ownership of gas in the
promotion won fame as the great- feoutn and West, and tne housing
es* laundry promotion contest amendments of 1955 making availa

expansion.

During the four-year period from
1956 through 1959, our
industry's
construction figures will total
$7,-

£00,000,000—the largest

sum

ever

rpent by the gas industry in any
four-year period, and greater than
our total assets in 1945.

Appliance

Sales

shared by

facturer and
tion. Nearly
in

materials

product

manu-

industry associahalf million dollars

an
a

were

contributed

the campaign at a cost of
only
few thousand dollars to us.

"Unlimited"

able part of a $100 million revolv-

ing

fund

for

municipal

dispoint up
gas

tribution systems — all
to. the fact that the
gas utility indusa

try is in for

serious

public

con-

national
level,
never
exceeded
25% of total gas range sales. Con¬

versely, all electric ranges being
sold today, whether for apartment
houses, new home developments
or deluxe
homes, provide the cus¬
tomer with complete automatic

ig¬

Gas Reserves

the possibility of the depletion

photography studios, test kitchens, lie Information in

our

It looks

reserves.

need have

count for

fear

this

many years to

though
ac¬

come.

the beginning of
1956, our A. G. A.

Committee
r°rve^

Natural

estimated

that

Gas

Re-

nrnvod

™

Lllr'™a!®„„„thal f™v.ed

I?:

coverable reserves of
natural gas
in the United States totaled
nearly
224 trillion cubic feet.

Although

production last
trillion
to

cubic

cubic feet

year

feet,

over

gain

exceeded

were

able

trillion

the previous
year's

reserves.

Research

ag-

gressive

midt

h*»

ntftfrpLivl
aggressive

nnri

and

sales.

There

has

al-

Deyelopment
has

continued

its

ad-

visory and needling program under the^capable and aggressive
leadership of J. Theodore Wolfe,

uu*. t!iUUuUy'

years this need has heen
recognized

£y our member companies and by our manufacturers.
While the funds we
spend may be
considered small in
comparison
with the vast amounts
devoted to
research by our

competitors,

achieved

some

gas applian?e

major

During the year, this Committee
activated

Industry
as

our

Fifteen-Point

Development

Gas

Program.

recommended by the Board in

1953.

A series of

Round

ac-

cities

important Executive

Tables

were

held

in6ten

throughout the country.

every type These meet^gTwere specificalfy
used in the home designed to give our executives an

'T arpliShme.nte- Today

progres-

ways been a greakand continuing Executive - Vice-President, Baltineed for research in our
industry more Gas and Electric Company.

have

cinoSd^^n^tlH

iri

Committee

The race for markets willgo to
the swift in research and the

the year ahead.

Gas Industry Development

outstanding example of mo- opportunity, to
dernity, beauty, and efficiency. The^pr of itable

learn

about

the

application of the

ground

gas

sales is to be
must

increased,

done

ranee

more work

by the utility

and

the

Laboratories.

year

and

were
greatly saddened this
by the loss of a good friend,

most

capable

guardian

public confidence, Edwin L. Hall
As Assistant
A.

A.
Ed

G.
G.

A.
A.

Managing Director of
and

director

the

Laboratories since

made

many

1947,
contributions to

the gas

industry. Frank E. Hod^don/who has succeeded Ed, will
carry

the

fine

the great traditions of
gentleman with whom

Frank worked for

many years.

that
to

will

get

good

can

as¬

happy selec¬
us

off

start

gas service

and gas appliances to the millions ••
of consumers who make
up the<

if the

volume of automatic

it will be

bringing the merits of

homf
home econ^mfc^departments11686
^onom.cs departments.

the

P*°f

great. growth often brings

and ™epe

Today,' at the national level,
only 10% of all gas ranges are sold
by utilities. It is self-evident that

Our

you

tion

nition.

manufacturer with the dealer,
troversy. The politicians, our pubwho sells the remaining 90%.
Over 250 utilities are partici- lie
The gas industry faces a
relations barometer, still beperiod
cf almost unbelievable
Although Jan. 1, 1959, when this
expansion pating in this year's Old Stove lieve that a slightly anti-utility
In appliance sales.
The A. G. A. Round-Up. It has been estimated attitude is popular, even in the requirement becomes mandatory,
that
Bureau of Statistics has just com425,000 people bought $90 case of gas utilities.
is more than two years away, your
Dieted a" "long-range' study" 'which
The need to get our story across Association has made available a
w°rth °lgas 5a,n,gea d"ri"g
rhows that, with vigorous
promo- JJj®
d Stove Round-Up in 1955. to the public is immediate and complete and comprehensive auto¬
tion
and
product
development, w;th, .th? new features incorpo- acute, PAR Public Information is matic gas range sales and promo¬
nearly 300 million gas appliances rated in today s gas ranges, A. G. A. helping you to meet this need in tional program for use by all util¬
of all types could be sold in
ities, manufacturers, dealers, and
the believes last year's volume can be three ways:
distributors.
20-year period from 1955 to 1974, doubled- This is only one of sev"
First, it is keeping your compa¬
inclusive. This is more than three eral campaigns initiated each year
I
sincerely 1 believe we have
nies supplied with new public re¬
times the
reached the point where we can
approximately 90 mil- under PAR.
lations materials and ideas.
lion gas appliances in use
no
longer
hesitate or delay. Work¬
today.
We are also doing an effective
Second, it is sponsoring public
The achievable market for
gas j°b of
promotion in the motiqn; relations workshops in cooperation ing together, we can do this job.
range sales during this period" is Picture and television fields. .The with
regional gas groups and local
A. G. A. Testing
Laboratories;
placed at 94 million; the market Hollywood
Bureau dramatically gas men throughout the country.
The
work
being done at bur
>for gas water heaters at 80 mil- Presents kitchens and gas appli- These idea forums are
stimulating A. G. A.
Testing Laboratories in
Jion; central heating units, nearly ances in glamorous settings for exchange of information and a
Cleveland and Los Angeles is one
25 million; floor and wall
fur- fllms
and TV shows.
Complete better understanding of common
of the most
kitchen and laundry sets or in¬
unique and interesting
nac€«, 20 million; space
problems and their solution.
heaters,
stories of our industry.
54 million;
Here, each
appliances
are
made
dryers, 17 million, and dividual
Third, PAR Public Information
incinerators, more than five mil¬ available for use in commercial is providing an over-all canopy year, in addition to the many PAR
research
projects that are carried
lion.
films or^jegular TV
productions. of favorable gas publicity at tne
on, more than five thousand indi¬
But iust as staeeerine as tho More/thaBm% of alt motion pic- national level.
vidual models of gas
appliances
potential market
new gas
ap- tures
^edin. Hollywood show
More than 100 of our member are tested annually to make sure
pliances is the potential market gas rang^M*k"ieir kitchen scenes, companies have seen
the urgent
they meet the requirements of
for new
concepts of living. In the
Babk in the East again, we find necessity for this
program and safety, dependability, and effici¬
future, American families will be ^be Association's promotion bu- have subscribed dollars and manency that are American standards.,
as proud of their
beautiful, mod- feau maintains a service program power to its support. But if our Through our own self-regulation,
ern
gas kitchens as they are of in metropolitan New York to
keep story is to be told to the public more than 95% of the gas appli¬
their polished and powerful cars. gas
appliances in top working effectively, we ^will require even ances sold today bear the "Blue
order for TV
studios, commercial broader company support for Pub- Star" Seal of Approval of our

fo?

nalized at any moment.
sure

audiences of the

country.
creating a series,

A committee is

high quality commercials that
encompass all aspects of the

will

business.

satisfy
point
you

There will be

any

occasion

might

some

sales:

want

put

across.

all

you

doubt

know,-

Frank

Trembly, director of sales/
Philadelphia Gas Works, has been
,

the

active chairman
In

ect.

the

opinion, he

wholehearted

entire

deserves

thanks

industry for

effort

of this proj¬

,of

the-

the time

and*

personally has devoted
in achieving this
splending coop¬
erative venture.

He and his Com¬

mittee, which I wish I had time
name

individually

here, have:
very hard and diligently :
have accomplished that which

worked
and
was

sible

considered practicallv impos-'
a few years ago.
With their'

efforts
as

and the cooperative spirit
evidenced by our member util¬

ities
be

and

affiliates,

shall

soon

before the

public eye, and the
utility will—in one leap—*
into big time TV and be an

local

get

equal to the best known national
television

advertisers

t^e GE's,
the
Westingpersonally want to ex¬
press my thanks to the Philadel¬
phia Gas Works and to member
gas companies all over the country
the

—

Frigidaire's,

house's.

for their support of this
program.

Unity
We

are

truly a great industry
and must stay that wav.
No one
segment of our industry can suc¬
ceed without the

port of the other.

health and sup¬
Whether we be

producer, transmitter, or distribu¬
tor, we must work together. Dif¬
of opinion arose
among
us
during consideration of the
Harris-Fulbright Bill.
Since
it

ferences

would

affect the industry differ¬
ently from producer to pipeliner
distributor, and even among
distributors, it is easy to under¬
stand why a common
viewpoint
to

was

difficult

of^attainment.

We have made progress in other
fields.
Our
industry's accident

Our consideration since the veto
of
the
Harris-Fulbright Bill by

frequency rate had declined stead¬
ily for the past seven years. This

the President is not

year,

with A. G. A.'s Accident Pre¬

vention

Committee

plug,

will again lower

cident

frequency ^ate.

spark
pur

•

ac¬

now

with the

legal ramifications involved in the
argument of legislative intent, but
rather

with

finding this
It

was

the

difficult

task

viewpoint.
privilege recently to

common

Volume 184

Number 5580,—.The Commercial and Financial Chronicle

attend

a
meeting of the Inde¬
pendent Natural Gas Association
where representatives of the

created

Continued from first page

ducer, the pipeliner, and the dis¬
tributor expressed their
points of
view, We did not seem too far

apart, and all are agreed upon the
necessity for unity. I sincerely be¬
lieve
great
progress
has
been
made, and that we are closer to
than

ever

common

how to

to borrowers who
go into tfie
goods in excess of suppW, prices must rise.
If the banks?
^aVfibMMy the cpntt^hahks;y^frai^"ffOm
placing this unearned and unsayed money in the hands
of the public, what is known
aslinflation is avoided and

the investment field.
Moody's
Investors Service, commenting on
shares that could withstand
any
serious trouble in the market re-r

cently said: "Now supplying 25%
the nation's fuel, the natural
gas
industry is strongly en¬
-

have then is

interest" rates

indus¬

defensive strength, which is of im¬

for

the

uneven

market

change from the

expres¬

of this investment group just
decade ago.
Our industry has

sion
a

made
few

great

progress

the

last

Working together,
anticipate a growing and

years.

may

warding

service
of

sumers

the

America

and

maturity.

today the nation must have much
complicated andi costly armament that was often not even

tificate's

con¬

our¬

within the kteri of rtiah

—

Nov.

1971,

certificates
from

priced to

were

May

1957

inclusive.

(Special to The Financial Chronicle)

The

4.50%, according to

Intermountain Securities
Columbine

Issuance

and

sale

the

J ,are" s*u b j e c t

•

selves.

Much

the

purchasing

that

;

created by

power

With
J< !

Of Holton, Hull

would

different

sort

and

different

order

E. Pollock &

Co., Inc., and Shear-

Hammill & Co.

Wayne Jewell

(Special to'The Financial Chronicle)

DENVER,

Colo.

staff
818

Chfester

—

McFeeters" has been

added

tha

Wayne Jewell Company*

Seventeenth

Street.

With United Investors
(Special to The Financial Chronicle)

Co.; Freeman

Company; The Illinois Co. Inc.;

son

Inc., 3GJ

Street.

cer¬

tq,M the

McMaster Hutchinson & Co.; Wm.

this—though certainly not all of it—is in
and of itself all to the good. If only our will—the will of
all of us—to work matched our will to have, there would
be no problem, or at least such problems as remained

Haims, Henderson V-Ps

W. Pressprich &

;

DENVER, Colo. — Warren C.
Gillespie has joined the staff cl

yield

couple of dedades agb. LargeSSe3; authorization of the Interstate
many to demand things they other- % Commerce Commission,

^production, and
production.

re¬

gas

The

paid out encourages
wise wTould not aspire to. On top of all this we feel that \
The issue is to be secured by
we
must send vast sums (the equivalent of goods and
490 all steel box cars to cost not
services) to many other peoples throughout the world.
less than $3,300,000.
Add all these up and the total easily tends to exceed total
Associates in the offering are—

situation ahead."

What

semi-annually

Meantime, government yielding apparently to popu¬
lar will, now undertakes to supply much that until the
advent of the New Deal was supposed to be supplied by
the people themselves—when it was supplied at all. Then

try with well assured and slowly
rising earnings. Natural gas stocks
in general shape up as reliable in-«
in the state of the world
come producers with considerable >
portance

rise.

demand for money continues
greater than the supply of it and its price goes
up; excess
demand for goods, on the other
hand, is largely held in an
ineffective state and prices do not rise
disproportionately.

'
y
A Real Distinction

ing

try some¬

"What

Halsey, Stuart Group
Equip. Tr. Gtfs.

In closing, I would like to quote
recent statement from a member

trenched.

hand and the funds

horizons.

Moody's Appraisal
:■

get.

underwrites great opportunity for
all of us. Our
industry is headed
new

have

importance is far from :
;
academic. Turn to the facts. The number of people in the
Such seems to be
roughly what is occurring today—ex- '
country willing and able to do the work necessary to the
cept, of course, for the accumulated inflationary forces '*
production of the goods and services that the public wants
arising from past credit mismanagement.
is. of course, limited. By and large, they are all employed ;
Understanding of the present money market situation I
at present. In keeping with the
spirit of the times the
must seek
help if it does not start far from Wall Street.
things" they want, both tangible and intangible, have
multiplied over and over again in recent years. No one,
With Dempsey Tegeler
or almost no one, is
longer satisfied to live as their fathers
(Special to The Financial Chronicle)
did, or even nearly on that level. They must have gadgets
DENVER, Colo.
Offers
George D.
galore, and they must have highways and entertainment
Powell
has
become
connected
and a variety of foods and much else that were never
Halsey, Stuart & Co. Inc. and with
Dempsey-Tegeler
&
Co.,
on
Oct.
19
offered
even dreamed
of a relatively short period of time ago.* associates
Midland Savings Bank Building.
$2,640,000
of
4%%
equipment
And business if it is to provide these things in abundance
trust certificates, series
C, matur¬
must have factories and all sorts of intricate
Joins Intermountain Sees.
equipment.

can

be attained.
;
\
' ;~
With unity in our industry, we
are looking ahead. An unusual
and
accelerating
population
growth

for

The difference is real, and its

•«

viewpoint

before, and that it

We See

the funds

„

will

and

that

by fiat and loaned

market for

pro¬

finding

(1762

DENVER,
Stewart

vestors

tional

Colo.

now

Philip

—

with

United

IT.
In¬

Incorporated, U. S. Na¬
Building, Mile Higa

Bank

Center.

magnitude.

If the zest for production common among
entrepreneurs and executives were matched in the breasts

LOS

ANGELES, Calif. — C. L.
Holton, President, of Holton, Hull
& Co., 210 West Seventh Street,

of the

men and women who must do the
daily work re¬
quired for full production, •„output would match, or cer¬
tainly much more nearly match, desire to consume, and

purchasing power incident to that production would much
more
nearly if not fully match the demand for the good
things of life. Then the borrower could find lenders who
saved part of their income,, and the economy would pre>

sent *a well balanced

not at the

appearance—which It definitely does

present time,; Then the pressure to borrow more

funds than
money

The trouble is that there is

Cuai'ies

L..

nuiiua

members of the Los

Angeles Stock

are available for
lending would not exist and
would not be abnormally tight.

have

and

sorts

no such matching of desire
willingness to produce. As demand for all

goods and services has grown in recent years,
shorter hours of work and innumerable

Exchange, announced the election

insistence upon

of Martin J. Haims and Robert J.

restrictions has grown pari passu. Only technological ad¬
vance and eternal effort to
organize human effort more

Henderson

Vice-Presidents. Mr.

Haims continues

Sales Manager
as Man¬

and Robert J. Henderson

ager
1

the Trading Department.

effectively have saved
It

commonly

spoken

from ruin, lo these many years.

A iUfffitinilc

as productivity of labor; it
productivity of technology and organiza-^.
tional
.genius.-Accompanying this unwillingness to exert
oneself adeauately there is, of course, the insistence that
a
larger and larger amount of money be paid out for the

should be termed

With Walston Co.
(Spec.al to The Financial Chronicle)

VALLEJO,
Foley

Walston

Calif.

James

—

affiliated

now

with

Co., Inc., 601 Georgia

Street.

services that

wage earners

are

rendered. This

rises

means

Growth of The Industrial Southeast

that demand from
Last year

production is limited.

Southern Natural completed twenty-five

providing natural
.

Joins Maisel Inv.

FRANCISCO, Calif.—Robt.

Wooismall

nected

with

has

become

Maisel

con¬

Investment

Company, <564 Market Street.

(Special to The Financial Chronicle)

Colo.

—

Leona

associated

Gastl
with

Birkenmayer & Co., Denver Cl"b
Building. Mrs. Gastl was formerly
with Shelley, Roberts 6c Co.

too

nearly all,

to Staff

(Special to The Financial Chronicle)

FT.

ciated

with

Fla.
—
become asso¬

Fahnestock

1750

East

Was

formerly

Sunrise

Co.,

Boulevard.

with

Thomson

McKinnon.

and the
gas

time that all,

The

over

900%, while at the

same

area

serves

hav3-

delivery capacity of

rushing into the market to buy and

shown

an even

has been increased

time the value of

products manufactured in The Industrial Southeast ha'J

tem which alone

can

bring

new

•

greater growth.

excess
reason

Whether natural gas

sys¬

funds into existence with¬

having earned and saved them,

tight and interest rates rise. This
is

by the banking

seems

money

you or

not,

as a

industrial

place to live and work.

to be essentially

happening today. What is being demanded in
supply is goods and services—and it is for that

that money

is wanted in

excess

SOUTHERN NATURAL GAS COMPi

of supply.

Now, obviously in these circumstances if
means

is important to

invite you to look at the Southeast for your

expansion and

becomes

Serving the Growing Southeast

1930-1955—both this company

made tremendous progress.

the Southern Natural Gas system

demands; if government like¬

in the absence oi active intervention

what

LAUDERDALE,

George S. Losey

are

yearc

for the homes and industries of

perhaps seeking borrowed funds to help them buy, then

out first

Fahnestock Adds

earner

wise seeks funds from lenders at the very

gas

The Industrial Southeast. During the quarter-century—

supplement
his wages with borrowed funds for the
purchase of con¬
sumer
goods; if the maker of these goods must also under¬
take to' borrow funds to
equip himself to produce the
goods that the wage

Birkenmeyer Adds
; DENVER,
has become

Goods Not Funds

•

If in addition the worker undertakes to

(Special to The Financial Chronicle)

SAN

•

yardstick measuring

are

ways

provided by which the desired funds

and <■

can

HOME OFFICE-BIRMINGHAM, ALABAMA

}

(1764)

The Commercial and
Financial Chronicle

Continued jrom page 13

operation of thenumerous parties
who

Federal Power Commissioner
of

applicant could
protect his customer's

ordinarily
interest

well

that the

the

his

customer

be necessary.

™

oro
There

have

been

know

would not

filed

provisions of the

the pipelines,
tion and

the

nations

Act.

intervention

the

plete

disciosure

facts

his

for

and

the

all

that

proceed

without

cent months.

delay

Judicial
The

can

necessary, stipulations in the other
that they would be
governed

cases

and

174-B

filing 16 petitions

tain

Commission

Court

review

orders.

subsequently

stated

cer-

The
in

its

opinion affirming the Commission
that the

orders

were

"for

all

in-

the

District

Court

some

Orders

174-B, and
instances

the

P°inted

and

addiad-

were

174-A
in

court

°ut-

would

not

have

been

sufficient
,

and
many

they

in~

volved "identical" issues., It
would
have
been

simple

for

not

chose

right
errors

take.
seek

under

must remain
we

now

some

repeat

redress

our

that

judicial

the

alleged

processes

inviolate.

have

iast two years was
unnecessary
is fortified
by the fact that a great
number of
cases

that

Was

not

decided

court

the

over

independent producers'.

were

the

rrne

lacked

cause

the ground
iurisdiction

that

the

case

for iudicial action
"

FPC

Upheld Against Independent
Producers

passing

tioned

might

that,~'of'the

decisions

Jd.

men-

judicial^

ca^s^ih*'Which'

nartv

first nine iifohms: of this calendar
of

them

Commission,

were

arid

of those three cases
involved

independent

producers.

•

Mv belief is that the public the
Fedgrai power Commission 'and

However, the natural gas companies
under
the! advantage, of the Commission's
regulation will

experience and

can
employ all be benefited if the Commis-.
hindsight where previously sion's staff can devote
less time to

given
,

MAKES

bfeireurnsclibed.
Furthermore, in
area

the

£°Mr ,s

CHESSIE'S

uncharted

Jl®

HJP
a

,.P

unfamiliarity

eu,m case- as. ^
as ln, 5
Commission's rules, the areas of uncertainty, court
deobjectives sought by such rules, clslons are essential to supply the
and a lack of
understanding of necessary definitive rules and to
our procedures for
processing ap- determine the propriety of Com¬
Witt

the

plications.
The objective of the
rules is to obtain a concise under-'
standing of the applicant's proposal, and the effect of the
posal

the

existing

of the applicant

company.

nished, but
omission

ample, in
applicants

such

situations

htigation-in the last

^icates that

evident
not

in
in

ment as

some

all,

and

clear

During
of

the

staff

all

existing

not

are

your

and

opera-

proposed,

abridged hearing, the evi¬

is placed

Staff Counsel.

in the

record

S^ofiAri<)ri?I«u "2?
For
n

ample:
Facts

Record
,

Suppose

plied Jor
facilities
000.

the

has

$50,-

Also

suppose

that

the

ap-

exceed

greatly

accounts

payable.
It
is
evident that this
applicant is well
able to meet the
expenditure from

years

an average

court

actions

the

FPC

1952,

was

each

such

cases

there

were

26.

fiscal

1954

there

were

29.

fiscal

1955

there

were

43.

fiscal

1956

there

were

65.

cases

was

that

see

the

•

number

commenced in fiscal

than

double

nUmber commenced in
fiscal

and

the

1954,

half again as
many as were
started in fiscal 1955. In the
first
quarter of fiscal 1957, which
ended

Sept. 30 of this year, 12
instituted.

such cases were

Too

ap-,

plicant has a plant account
of
$200 million with
monthly depreeiation charges of
$500,000 and
bafh-oh hand of $3
million, and
that accounts, receivable

years

Applicant

certificate to construct
estimated to cost

years,

1953

Decision Based

;

fiscal

instituted,

fisca]

0f court

Commis-

thorl a decision on the
A^i i \ usm use ancomAgain, let
ex->

plete.

ap~ .1956

the

commenced,

Thus

This evidence ordi-

.plication itself*

six

were

fiscal

were

you are.

dence

the

over

party,
°f those

Remember, the Com-

familiar with

tions,

just

un-

derstanding of the application that
is accessary.
mission and

few

1946 to 1951, inclusive,

state-

at the clear

a substantial portion

why it is inapplicable all kinds, in which

aids in arriving
*

instances,

of it may not have been necessary
*?r the vindication of rights or
the, determination .of, genuine
Questl0ns of fact or law.

many

merely state that an
exhibit is "inapplicable"
without
telling why. While it may be self-

•

th<: Commissions

explanation of the
required.
As an ex-

such

iUH™e?er> lt. Kmyn belief that
h*story °*

Without

cantn0} "?e achieved. And to this
axteat- 'he. Commission itself is
the ^beneficiary of the court proce® ln s"

pro-

operations

In some cases, information
may
be caUed for that is not
pertinent
to
the
application.
Under
our
rules, such data need not be fur-

;

act">ns.

guidance, the certainty which is -TT
essential to effective regulation

.As

Much

Oct.

Commission
cases
ous

all

Litigation

L of
was

thte year,
th<f
party to 62"
-

which were
pending in vari-

courts.

that

agree

sure

such

will
volume of
you

litigation requires the full
tion of

doubt

atten-

great number of lawyers,

there

are

very

many

States). which

must

law firms in the
country (excluding the Department of Justice of
the

United

conduct

as much
litigation in our i
But, Federal Courts as does the
Gen|&e record does not show
this, eral Counsel of the Federal
since the applicant did
Power
not include
Commission and its legal staff.

funds

hand

proposed.'

income

the

yJr
The

RnlP«f
applicant

fay,

the staff

the
are

would

our

and

our

court

able for

well aware of

growth

obvious

annual

that

litigation
rate

these
hearings, or
knowledge Commission.

recent

years,
report was filed
recently.
This is true, but the
decision must be based
on
the
and

FPC

staff

lawyers who must spend their
time representing the Commission

probably in

Commission

facts., They have had
of

st?te"

3S required

lieve

|
|
&

Hence, the question

whether

reduced,

avail-

certificate

not

other business of the
or

mission's volume
be

are

hearings,

not

the

Com-

litigation

suggested

possible, with

the

"•

which wer*»< rendered in the-

year, v billy'three
adverse to the
none

the-

Federal Power Cotntitission
was-a'

Review

one

The view that much of the liti-*
which has ensued in the

gation

case.

using these illustrations, I
criticizing any natural gas
peucompany for taking the action it

these

tions presented other
tl0nal Questions, all

hindsight was not possible, arid
foresight was almost impossible.•< !'

tents and

jn this

October 25,1956

right of judicial review of

isfact, required
by our Constitution. This inherent

unnecessary delays and ditficulties.
The applicants
themselves

display

174-A

Although

inter-

law> and

Foil and Complete Dteloaure

.number

Jult» seelfing
restrain the entorAcf^enVot tne same orders.

cori--dressed

and

Commission decisions is

^ "

Nos.

Relatively

certificate
pe-

for the District of Columbia Cir-

pertinent

application,

purposes identical" and
time, similar petitions were filed
"the grounds on which
petitioners
by four independent producers in
attack each of these orders
are
the Tenth Circuit, and requests
the same." No reason is
apparent
for injunctions were filed by two
why the filing of a single action

any,

type in certificate
proceedings have declined in re-

___

filed by various
independent
producers.
At
about
the
same

com-

mation they require to determine
whether or not they should inter-

this

frequently

full

and

commence

ciusion

subse-

Happily, the number of

titions

applicant

any

make

processing of the application

Hwould

That

certificate

clauses.

proceedings,

than

Orders

con-

vene

rate

cases.

in-

necessary?!'

(2)

con-

been

were

that these petitioners should

seek

sources

mission ask himself this question:-producers
"Is this intervention

producers and

the" Natural^Ga^s

quent
rather

may

sidering intervening in a certifiproceeding before the Com-

particularly escala-

favored

other

have

the Fifth Circuit
alone, seven petitions for review of
Commission

Cate

They ignore the fact that the producers cannot increase their rates

seem

Commissioners

from

not

case,

(1) That any party who is

cases

various

that

I suggest:

in independent
by customers of
the pipeline which proposes to
purchase the gas from the producers.
J.
These petitioners
have objected
to

the

In summation of this topic, may

tracts between

record

the parties to all these
cases
have unified their
contentions

war.«°«npS InW
the
by ^e outcome Of the test cases.
nffrnnfe ^ «v£«ru Another^illustration is provided
fn^prpf ^cpc plr pi.mniP in
theJctl°/} .of °"e company in
seYeral cases. For example, in

formation.

cus-

Many petitions for intervention
producers'

what

and

own,

intervention of the

tomer of the

facts

us.

Duplication in Review Petitions

Looks at Ike Gas Industry
customer

before

appear

Thursday,

can

beco-

•••-'

Volume 184

Number 5580:The Commercial and Financial
Chronicle

(1765)
litigation and

time

•<r

dis¬

transport natural gas out of the can Standard Code for Pressure
state, and are under state or local Piping.
The personnel of Sub¬
regulation as to rates and service. committee No. 8, which drafted the
Insofar as I know, none of the
portion of the code dealing with
Check
Before
Filing Suit
dire prophesies of the
opponents the safety of gas transmission and
Therefore, I suggest that before of the Hinshaw bill have come distribution
piping systems, were
anyone, who feels aggrieved by to
passmand
an
immeasurable able and diligent in the duties
any
action of th$
Commission, amqunf of money and work have they
performed.
The
Federal
starts
any
proceedings in
ten saved with no detriment to Power
Commission

does not have specific jurisdiction

posing of the Commission's back¬
log of other work.

with, respect

safety

Investment Association

require¬

ments

the* construction-,and.

for

operation
the

facilities

Natural

Gas

subject

Act.

The

25
^

Com¬

first
is

case

there

was

ascertain/if any similar the public interest.
already in the courts. If

suggest
mate

such

pending

endeavor

arrangements

case,

its

Safer Gas Transmission

consum¬

whereby

sented

There is another

tion

the

area

natural

•

All

the

who

natural

gas

either regulate
industry, or "are

employed

in it, have seen the
benefits which have accrued from
the 1954 amendment to the Nat¬
ural

Gas Act. known

shaw amendment.

the Hin-

This enactment

eliminated duplicating and unnec¬

ural

attention

companies

gas

which

have

facilities in only one state, do not

interest,

this

I call

matter,

for

continues

the

refer

problems
the

which

matter

Society

in
of

1955,

the

and

safety

new

the

promote

Accordingly,

the

for

scribe

enacted

which

the

The

National

However, it has not yet been
acted.

modifying the

Since

safety-'code is
plished fact, it

ployees involved in the construc¬

Mechanical

Engineers

ties.

en¬

comprehensive

now

appears

promoting public safety, as well sirable than ever
the
safety of company em¬ measure be passed.

tion and operation of these facili¬

pipe¬

gas

Association

Railroad

and
Utilities
Com-.
missioners favors such legislation.

inter¬

American

would

safety regulations applica¬

ble to interstate natural
lines.

pip¬
subcommittee

active

authorize the Commission to
pre¬

used

the

published Section 8 of the Ameri¬

will

tion

the

safety

This

which

welfare.

that

standards

broad

from outsiders

Reports

code,
when necessary, all in the interest

standards for the transportation of
natural gas..

Early

systems.

preting

exist.

promotion

particular action, but only to
suggest that you become informed
any

action

public

construction and operation of gas
transmission and distribution

ing

and

every

Section 8 of the American Stand¬
ard
Code
is
a
tremendous im¬

provement

your

not

and

indicate

the purpose of asking
you to take

Federal regulation of nat¬

essary

the public

well,

have

Commission has repeatedly advocated to the Congress that
legisla¬

meeting.

from the staff

of regula¬

gas

attended

does

juris¬
diction with respect to
public con-:
venience and' necessity and is, of
course, properly interested in any

repre¬

Subcommittee

representative

Subcommittee

industry
can
protect his. asserted rights
where, I believe, similar savings
without filing
a duplicate
court can
be
accomplished and state
action.
The
Commission's
staff and
Federal jurisdiction
can
be
will, I am sure, cooperate to that
defined, with a resultant benefit

end.

this

mission

accom¬

de¬

that

such

Unfortunately, in the absence
Federal
states

reglation,

have

number

passed,

are

of
of

con¬

sidering, various rules pertaining
to
this subject.- It is not to be

The Federal Power Commission

denied that peculiarities of
popu¬

lation, climate, terrain, and other
require the promulgation
of
regulations by the states for

factors

\IJbR

One

OA DGROW?

of a series telling what Chesapeake and Ohio
doing to make this a bigger, better railroad*

those Qperati-ons which

are

purely

intrastate-^nd local in character.
The

problem

interstate

different

pipelines

are

con»-

cerned, and Federal regulation of
safety
standards" for
them
is

the
fier this
other

Chesapeake and Ohio and
major coal-carrying railroads, lead-

coal producers

and

exporters and the
joined together to form
jrican Coal
Shipping, Inc.—a new $50 milcompany to assure a stable and continu-

istrial expansion. V

But

ores

new

coal down to the

imported

Local

sea

$8 million bulk cargo

cars which carry
will return loaded with

for America's industry.

"railroading

water" is not

•

new

which

sin ports

today

seven

This year-round
Lake Michigan is a

waunee.

freight service

The

Trainferry service
key link in the fast

the

ports than any other railroad. Also here, vital
iron ore is transferred from lake vessels to rail¬

Natural

Hence, tech¬

Commission's

duties

But,

same.

problems

your

1938,
Many

have

have
of the

the

old
problems have been solved. Some

remain, but
presented

emphasis
lems

for inland destinations.

passed.

changed since
Oommissiw's.'

many

new

ones

themselves.

place

is,

now

The

these prob¬

and

must.be, dif¬
Nevertheless, the old ques¬
of
"What
are
just
and

ferent.
cars

the

substantially the

still

coal for movement to Great Lakes

substantially the same
they were in 1938 when

was

have

road

unnecessary

are

nically,
just

routed

provisions
as

the Act

are

Toledo, C&O's modern low-level piers

handle

throughout the
length of the system.

;

At
50
gas

costs to consumers

of Milwaukee, Manitowoc and Ke¬

tions

reasonable rates?" and "What does

From the Atlantic to the Great

\rn skips as big, as swift as many ocean liners speed
it, automobiles and passengers

\-Cut between Michigan and

Lakes,

the public convenience and

pro¬

sound

via the Chessie

Wisconsin.

us,

dreamed

;

of in

ability

1938.

continue

• •

•■

try to

•

questions with all the
possess.

an¬

-•*.

Tr.*
*

■'

'•

'' '

•;

^ -

the

Would you like d portfolio df pictures ot

■

^
-

and Ohio!

Railway
3809 TERMINAL TOWER, CLEVELAND t, OHIO

MILWAUKEE .:::x.

'TV""
— mi

rapids

■

otherwise

the

asso¬

organiza¬

The Invest¬

Philadelphia.

present time
of

new

the

than

investment

and securities fraternity
Philadelphia area

Greater

been

field

the

finance.

for

Philadelphia does not plan to in¬
vite corporation officials to ad¬
dress their. meetings.
At an organization meeting of
,

the

new

Association held recently,
a five-member Execu¬

officers and
tive

Board

elected

were

hold

office until Jan. 1, 1958. John H.
Rem'er, partner of Drexel & Co.,
was
elected President; Harry K.

Hiestand, syndicate department of
Reynolds & Co., was elected Vice-

President; C£Wesley Welsh, Reg¬
istered Representative with Robt.

Glendinning & Co. Secretary and
Registered Rep¬

F. Stanton Moyer,

resentative with
&

Kidder, Peabody
Co., Treasurer.
,
."

.The Executive Board 6f the new

Mr. Remer
George deB.
Bell, partner, of Drexel & Co.;
John S. Buckley, Manager of the
Association consists of
and

Mr.

Hiestand;

Department of

The First Boston

Corporation and.
Markus, Registered
Representative with Smith,Richard

have

used

Barney & Co.-

have,

per¬

According to the Association's;
by-laws, membership is restricted
to men 40 years of age or less who!

appeared

the

Unlike

other associations in the industry,.
The' Investment
Association
of

^be

Commission.

Actually, I have spoken only for

have been in the investment

myself,

ing and brokerage business for at
least 12 months. Membership au¬

Chairman of the Com¬

point this out because

mission.

remarks,

editorial "we" and

speaking
%

these

haps,

Chessie/Peoke and their family? Write to:

and

new

Government Bond

will
those

swer

the

members

have

neces¬

or require?" are still
although frequently the
facts which present those issues
today would not have been even

with

planning that keeps Chessie's railroad

growing and going.

The

Association

banking

sity permit

gressive things^are happening all along the
C&O. It is this spirit of enterprise
guided by

here.

tion will be known

Costs

the. natural

result

may

Gas Act

east-west

Add

members

accepted for member¬
ship. The Investment Association,
of Philadelphia is patterned along
committee No. 8 and comrftittees
the lines of similar organizations
of
the American
Petroleum
In¬
already functioning in New York
stitute and the several
engineering and
Chicago.
*
societies,; there is no reason to
The Association
plans regular
expect anything except improve¬
luncheon meetings to be addressed
ment in this fine record.
In this
by experts in the field of bond
era
of high costs of material and
and stock financing, leading offi¬
labor, it is important, however, cials of various
exchanges, 'and
that the interstate pipelines not other speakers whose activities
be hamstrung by local
regulation are related directly, or indirectly,

big, fast
Trainferries carry trainloads of
freight be¬
tween
Ludington, Michigan, and the Wiscon¬

across

Codes

record

time

business have formed

with respect to safety
exemplary, and with the,
added
information
supplied
by
such committees as the AS4 -Sub-

of the

Chessie's railroad. C&O's fleet of

would

has been

that

means

all

possible

industry

two years ago.

pier

Economy

The

only

)ugh its Atlantic port of Newport News,
;inia, C&O currently handles nearly half of

ciation

greatest

Stanton ' Moycr

furthering education in
field of investment banking and
other phases of the securities

ment

J
ft
"ft
'
The import 6f ores
through Newport News
has increased to five times what it was

...

likely
safety

the

its

among
same

attained.

dling capacity.

[movement of American coal for Europe's

pipelines

required

that

interested in promoting a spirit of \
cooperation
and
understanding

the

with

port in 1956 and a new $3 million pier
addition
there will further increase C&O's coal han¬

ted Mine Workers

1F,

-.PHILADELPHIA,.Pa.-^A group
of
investment dealers primarily

to comply
different set of safety reg¬
ulations for each
of
the
states
within which they
operate, it is not

waves

America's mounting export of bituminous coal.
Almost 20 million tons will move
through this

year,

interstate

proper.
were

Wesley Wel*h

insofar

the
have
what

other
had
I

Commission
no

prior

might

Therefore,

say

you

with

the

with

other

Commission.

here

today.

disagree

anything I have said,

disagree

members

knowledge of

you

only,

members

with

should

and

not

the

bank-;

tomatically terminates at the end
the calendar year in which a
member reaches 41 years of age*

at the end of 3 years' member¬
ship, whichever occurs the later.
Members reaching the age limit
are eligible for honorary member¬
ship, but cannot hold office or

vote

the

Association.

administration of the

•

The Commercial and Financial Chronicle...

(1766)

Continued

jrom

page

so hopeless.
Let's forget
all and go our own way." But
is impossible.
We can't run;

thing is
it

Bank and Insurance Stocks

that

Non-Postponable America's Role
In A Seething, Changing World

8J ARTHUR B. WALLACE:

This Week
More and

Bank Stocks

—

the dealer houses with over-the-counter de¬

are recognizing the greatly improved statistics behind
the stocks of the leading banks, as well as the potentialities of the

partments

group. It has been brought out that of 12 of the leading New York
City banks, only one showed a lower price earnings ratio for the
12 months ended Sept. 30, 1956, than for the like period in 1955;
and that the price improvement that has taken place in them has
been at a slower pace than the betterment in earnings.
If, now, we examine the rate of operating earnings on capital
funds (that is, book value, and excluding reserves) we find a
marked change. For a number of years under the government's
policy of cheap money these banks had to subsist on meagre
rations. The rate of earnings on their capital funds was, on aver-

exiguous one. Probably very few industries were
obliged to get along on such scant fare; but the nation's banks were
expected to finance the recovery in the 1930's and the war after
that, at low interest rates.

■

age,

very

Even

compared with the 12 months ended Sept. 30, 1955,
the similar period recently closed brings out a pronounced improvment for a single year. The accompanying tabulation shows that
the average rate of operating earnings on capital funds in the
as

earlier period, 7.7%, increased to 8.7%, or an
And only now are the banks beginning to

fair return

realistic and

take this showing

along with the percentage of oper¬

trees, more steel,

coal,

than

For the earlier period the average pay-out was 58% of

operating

earnings;

lower.

Only

for the

later period

52%,

was

10.3%

bank showed the same ratio for the two periods;

one

before.

ever

there.-* We

pulleHijp at

electricity, tion, as we
more food,
erh-looking

cotton,

now more

Famine is prac-

came

mod-

city^-With wide new
new
stores, new f apartand
asked, "'Where' is
The gas attendant said,

streets,

tically eliminated.

When it is

smaller pay-opt

ratio.

by 18% to 20%, it takes
see

cal¬

in mind that earnings for the present

borne

endar year are, in almost all cases, in line to better those

of 1955

pessimistic viewer-with-alarm not to

number of dividend increases in the near-term future.' One

of the

reasons

bank may

advance for keeping dividends down
surplus account when the ratio-

of deposits to capital funds is high.
„

quite high the bank management

Indeed, when this ratio

runs

well expect to hear from the

may

^examining authorities and be obliged to keep dividend payments
low
6

eliminate them altogether.

ratio

average

serves)

apply to these

deposits to capital

the Sept. 30 quarter-date

funds

run

(again excluding

9.8 to 1.

was

figure that is regarded in the industry
interior banks

York City banks, for the

new

York City banks the highest ratio is 13.5 to 1.
ratios above

and

clear down to 4.8 to J..
With such
some

increases,

logical

extras, and

expectation

for

the

months

six with
10

eliminated
flies

and

two

1956.

Late

time

this

report,
is

lords

war

November and early December are the periods, in which most of
the large New York banks hold their dividend
meetings.

did

never

get

All this, but at what tragic cost!
Complete regimentation of an en-

people

NJ?♦£«

m the
la mode de Caen,

world< cooked
.

At A Tragic Cost

IZtVI hJ+

You can get the best trip^

to-

nistory to

♦on,,

a
restaurant

j^tie

Third

Avenue in New York City." ^e

had been

a Key York waiter for
6®Yen years* -.awti*
.

of New World RolFto Retain Peace
Communist
leaders
at
the
top,
T
terrible fear, stifling propaganda.
-t
?
tried to show you
The report said, in closing, "Yes, p
-nave.tried to snow you
bureaucracy

Twelve Months Ended

September

% Earned

read.

But

are

being

taught

the State is

all, and the individual
nothing. There is a curious and
sad
by-product.
Art,
in
every
ic

should

dvinfr

unw

happen in

that

cnH

country that

produced Ming pottery! And how

Bankers

Empire
First

Trust

Nat.

Cit;

Guaranty Tr.

Irving Trust

1956

7.7

8.3

tions

French

that' the

also

report
entire

are

the

the Chinese youth

among

costumes of blue cotton."

American

Government

known

We've

the imperial

Even ,gn

wants

ever

since

aggression -in Korea."

The-ohly hope held out in their
conclusions rests in

the enigmatic

Chinese smile, that somehow this

people will live through this great
so contrary to their basic

There
12

was

only

1956

In what direction will her big
neighbor, restless India, go? Who
kqows?
In the limited contacts

I have had I have been very

10.2

11.1

7.0

8.4

and

5.9

6.6

esses

7.9

9.8

8.2

8.5

methods, perhaps more
so
than any other country, with
the exception of Germany. India,

7.3

9.4

under

7.4

7.9

said that the

tically

versus

Sept. 30, 1955.

decidedly better earnings

increase in working assets.

earnings

were

can

therefore be

attained with prac¬

do witlV

can

broad

contacts. - First of all,
help dispel that idea which;
has been all too successfully sold
to a great part of the world t at',
we can

lions

to learn of

eager

new

proc-

and

Nehru, is awakening.

I have not mentioned Europe at
3

v?° S°'

especially to picture the changes
taking place in cities like Berlin,
Hamburg, Vienna, Milan, and Hot-

rebuild, and giy
agaj

But

rapid comeback.

thing is also happening in France. I am reminded of
same

little incident last

summer

it is

the

tin

convince

world

is possible,

that

ainly states-

citizen of France^or Germany, or
Italy lf thfy befieve *nat there
Jvl11 be an°ther
and see what
say* * have^gsked this many

times over recent years, and
hav* yet to
person—one

?in^ pe^s.OI?r -v^0^v°old say that
be trougnt there wouldnever be
an°ther world war. The only
question for thjp i^when. They
fervently hope*^ -will be long
enough off so that they can re_
coup

their

grow

another -generation.,

lost

keep

bigger

has

become

Normandy.

Well,

hero

tourist

sold my New England wife on the
idea that our trip would not be

complete if
where
other

ha^ad

themselves

enough.

Sometimes ymj near it

said that
ceaUy* should have

Europe
kind

and

Adenauer

idea.

But

Nations

United

United States of

those

all

would
turns

the

are

have

both

neveri

for

this

seen

the

it is not
off."

the

going to be

calls

nations

longer afford."

to shake
luxury that

easy

Europe

can

when

But

some-

did not go to

nothing

would

but
we should detour and
go to Caen
and eat some tripe "a la mode de
Caen."

-t

*•

■

ideas

good,

the

bestv

ourselves and

of peace.

Need

109% Better Public
Relations
g

Second,
about

100%

public

better

relations

the world than

with

just

job

the

rest

our

of.

doing now.
to wipe out the old pic*

We need

that

ture

have

are

nation

the

whose

rich,

only concern is the
almighty dollar, Why, some Eu¬
ropeans
believe
the
food
and
clothing we sent over were out of
our
heavy surpluses, and that if
hadn't

disposed

would have had
Russia
value
worked
any

them

full

well

the

and

has

propaganda,

out

depression.

knows

means

put

across

to have be¬

story she wants

lieved. A business friend of mine

who

just got back

from

last

month

told

has

100,000

trained

few

Moscow

that 'Russia

specialists

radio

programs,

the

fied.

State Department

this

Now

not

job

for

the

Department alone. A lot can
be done
by us as individuals—
how we deal with others, how we
behave

men, as

thoughtful Americans, and

what
show

tourists

something

and

business¬

culture

That

the

relations

public

Some

think

first

about
*

things already done have

Please do not

unimportant if I mention

American play, "The Tea¬
of the August Moon." Per¬

house

some

remember

you saw

few

it. You

may

the
play abcut
us, showing an overbearing Amer¬
ican businessman who exploited
his workers.
It had a long • run
Russians

years

produced

ago

Moscow, and I hate to think of

the impression it created.

All we
"It isn't- so."
This play of ours, "The Teahouse
of the August Moon," tells about
the job we tried to do in occupied
Okinawa, and what our democ¬
racy really means.
We do some
blundering,
in
the
play,
but
through it all is shown the great
could

i^o

was

say,

have

told

whole

across

our

character.

our

kind

choose to send

the

State

all

"Oh,

Cannot Do

It Alone

thing,

country,

suc.i

Voice of America and the Crusade

desire

this

could knock

one

could for

They

trigger-

for

out

Leadership Mantle

And how oftqjt you hear it said
in

"big

doing

Cannot^un Away from
•

bombs.

one

cause

Europe, Churchill haps

•

are

been most effective.

Caen, thing is deep-rooted in emotions
the city is- famous
among, it is hard to change. things for the way it cooks
v
' "

tripe.

bigger

will

war,

happy nation,. If

They

when

great

some

and

think

believe

afraid

especially if
talking about making

.and ^hich we can do something.

manpower,

idea meet withf anykfavor with the
and
I
were
driving average citizen abroad,
Normandy.
We
were
Their
national
prejudices run
a little tour, following the too deep. As the historian
Toynroute of General Patton's march bee
says, "Nationalism has a hold
with his tank corps in the war. on West
European nations which
Patton

into

been

Even

do.

who

friends

our

want peace are

blunder

have

Eisenhower, \for Freedom, and scattered efforts
ih^re and there, none of them uni¬

President

through
making

who

probably

propaganda working for the gov¬
:.is to survive, ernment, and many more civilian
'volunteers.
What do we have?
A
we have to do

wife

citizens

;£fWe must have

stana a"°tn®r.yv

making such

cour-

now

world cannot

n.ee^*or *?Kace*

the

that is,

above all other;

tnem

pre basic.
•
hneed looms up

something mucxi»
Today one gr

Ee^c?u^
But the first

help

terdam^ how from a state of near-,
^gt
ly complete destruction they are
The

indoctrinated

that

others want peace, and are work1Ilg *or \ ' But ask *ne avera6®

1955

nominal change in invested assets of these

banks, Sept. 30, 1956,

rjto

men*

reporting

have to be

their level, not outs. ;
as" businessmen
we
have

But

our

the war-rid-

den world, moi

speaking

£ money

Dulles, Eden, Adenauer, and many

much
impressed with the caliber of their
engineers when they came to visit
our plants.
They are very skilled,

ago.gj^fen,

Nehru Awakens India

8.9

It is not |M*ole that was

ten: years

peace

philosophy.

8.6

method

play.

good enough 23 ylays ago, or even

them, "But aSe to start

educated professor told

the

their

8.6

its

f°war<* modern civilization,

they put it, "Hatred of bluntly, it wasg
United States is as uniform was needed thef

8.2

because

?°f ™rge,o£ backward peoples

States.- As

•

used

a11 together $aand the tremen-

men-

masses

8.3

7.5

rnntf^f
fip JirM
^
IS
wl*b modern ti^msportation and
modern commutation knitting

being taught hatred of the United

7.1

;

course,;

individual

ordeal,'

—in Dividends—

ban

we
our

something that .we too

thinking * * In this rapidly changing scene,
—in a country that produced Con- our country, and even you and I
fucius!
Rs individuals,
new role to

sad to have

% Earninqs Paid

Book Value

1955

cfhoose

is to

can

for the great decisions
made

what?"—That

read

best leadfrs

country to chart

Chinese

the

character and
\

this

°"Jy

for

history

her

taiiy funixiea.

tire

incidentally

th^?pe«iJLteTour waller

land

now

all

very

some

they

feudal
first

great
scourges,The ehildren look

rats.

Finaliy,
of

two becomes

away

About

war.

declaration of

the

stock dividend

remaining

are

below

run

strong deposit ratio position

some

Among the New

There

like number that

Now, this is

quite conservative. Many

ratio of twice that figure,'

re^

shoulders, and we cannot
from it even if we would.

get

This

But that does not

part of the world has fallen

our

course,

form

is, of course, the need to build

free

The country is ments>
agriculturally self-sufficient. Caen?"
there has been com- "This, Monsieur, is Caen." "But it we are
really a nation pf war-;
plete
liquidation
of
the
great js all new," I said.
He replied, mongers,* that our prosperity is
feudal estates.
"The old Caen js^gone, 83% de- based on
producing for w^r, and*
There is under way a universal
stroyed. :This fcthe new Caen, that we have to have a war' every
literacy campaign.
What is left of; the old is over so often to avoid a depression—
Healthwise,
these
reporters there on the hiltf^And he pointed the old line of Russian
propa¬
found
amazing progress.
Great to the old university buildings in
ganda.
'
« •
emphasis has been put on public the distance, and the crumbling
Of course the leaders of Europe
health, and they have practically ramparts vt a castle,
do not believe it, but I fear mil->
now

„

all of the others showed

mantle

sta-

a gas
very

the

the world. Somehow
of leadership of toe

from

away

the

j well remembered the old uni-

reforestation. China has

ating earnings the banks disb^ed as dividends in the sarpe two
12-m6nth periods it becomes apparent what the dividend poten¬
tiality is.

Advancescin France

They have long-range plans for Versity city, so_micn in
history,
agrarian reform, flood control, and and followed
directions! to
get

the

four people in the world is

every

Chinese.

improvement of 13%.

enjoy

their book values.

Thursday, October 25, 1956

humor.
of

the

with

the

right

sense

This play has proved one
best

of propaganda

pieces
I

Volume 184

Number 5580... The Commercial and Financial
Chronicle

(1767)
for

that

have had.

It is still

sure

nobody anticipated. Europe
cities of Europe had been hearing plenty of
propo-

thepe are more tourists, cheaper is my hope that we will
do it with
Stock Market Outlook:
Edmund
fares, more exchange of students sincerity and
humility.
W. Tabell, Walston &
Co.
and teachers, more
exchange of
I feel I ought to mention another
Must Be Prepared and Strong
peSroes in our country. Then services
an<jl
information, and
January
1957
American
play that
opened - in here comes a < performer famous more emphasis on
Also let us have the good sense
languages in
(Midwest Forum)
Germany just two weeks ago, on and. successful, obviously enjoying our own schools. And I
to
fervently
stay
prepared
and
Theme:
strong.
a serious
Investing ! in Canada,
theme, that of persecu¬ a high standard of living, looking hope we do a better job of teach¬ Whether that
means
a
standing Chairman, Glenn Miller.
tion and the concentration
like the proverbial million dolcamp.
ing modern languages tnan we did army, or a stock of H
bombs
is
That is something you never hear lars> ahle to afford the best such when I
Luncheon, Forums, Cocktail
went to school.
How in¬ a matter for the
experts to decide, Party and Reception.
discussed in Europe, or at
(No dinner
least, as much of royalty could not— ferior one can feel in the presence not the layman. But
prepared
we
meeting.)
in
Germany.
In the rare cases and ^e was colored!
All talk of of Europeans who speak three and must be. It is
sad but true that
when the word is
mentioned, con- our "suppressed colored race" fell four languages fluently.in
January 10, 1957
this
world
today
running in

many

Asia.

and

■

about

ganaa

the

down-trodden

versation

stops.

One

gets

nat-

the

happened.
told

never

the

all

its

pages

peated.

enormity,
such

can

that

blot

civilization

re-

Anne

another

pretty pathetic.

expensive

Frank"

proposition

Two?, wetks

ago
this
simple,
play, "The Diary of Anne
Frank," opened simultaneously in
seven
leading cities of Germany.

tells

the true

story of

young

Spread of U. S. International

sent

excel-

lent exhibits, and thesS trade fairs
became so important that our

mer,

;

America's
world is
not

saw

years ago Walter Williams,
the White House aide, was
assigned

they realized what had happened
horrified

world.

went,

the

rest

intermission

the

put.r As the curtain went

down there

first dead silence,
bewildered applause.
It'4s

then

having

the

one

was

tremendous effect. That
one play is
telling them what our
diplomats could not. I predict tnat
a

task

exhibits

organizing American
these fairs, and he
most-original and ef-

for

has done

fective job.

This year nearly 50,persoiis "will see

COO,000 foreign
United

States'

fairs.

exhibits
'

Gne

P^y

Wld

can

only

crows

draw

to watch

football games.

sent

Spain

.Many

Europeans

the myth

piling

that

lined

still

the dollars that

believe

all

are

queue

how

see

mile

voting

busy

works.

have

nated by an

average,

ready-made

German Wives

long

machine
fasci-

were

inexpensive
^ rid robe for an
course
they value very highly. American fam
ily; each article with
You probably saw in the
papers priCe tag
attache*)." In Italy we
where the Boston
Symphony Or- had a six-foot Wooden chicken
chestra just returned after
play- with a sound trick on how and
ing
all
over
Europe,
and
in why chickens
lay eggs. ;That may
Moscow
for

tune

well.

time

which

the

was

They

just

Here

tra,

couldn't

was

first

an
American orchestra
been heard in Russia.
-

ever

it.

culture,

had

that

could

rank

Europe's
"Oh,
it

best.

Some

critics

said,

half

their

because

orchestra members
born."

They

that

Brazil, and
The
with

other

make

their

respect

dollar, the
and

The Russians
all

making

ways

such

don't

stand

hibit

believe

could

orchestra
It

the

with

was

things

they

ought

letter

sent

hower

is;

Still

tacts

Wefal

times

that.

not

phony Orchestra during its recent
tour
cf
Europe have given me
grtat satisfaction.

standing

Whenever out-

Americans

display

their taients to the
people of other

countries,
tional

big

the

cause

people want

area

con-

invest-

nations

by which
of

work

out

has

demonstrated

this

truth

Accept my congratulations
job well done.

a
,

"Dwight D. Eisenhower."
Results of Louis Armstrong's Tour
Here is another
example

relations for
taken

take

very

sider it
native

us.

hold

of good
American jazz has

there.

don't believe I
million new

Steel

Products

ST.

Co.,

PAUL,

Gorder is
&

life

poor

hungry.

and

peace

heart.

Stores,

Milton

all

You

freedom
you

peasant

bowl of rice

lives
a

and

want

to,

the

(Special to The Financial Chronicle)

talk

our

way

but if

peasant

one

who is, capable of carrying
raad
to peace is the

The

road

gun.
same

the road to freedom from

diseasje and hunger,

are

Bank

SAN
liam

nected

Secretary of the

do, it Treasury.)

American

Gas

MICHKAN

CONSOLIDATED

GAS

NEW

JERSEY

COMPANY

MICHIGAN WISCONSIN PIPE LINE COMPANY

Christiansen
with

Hooker

Street,

New York

is
&

•

MILWAUKEE

Exchanges.

LIGHT

can

COMPANY

AMERICAN LOUISIANA PIPE LINE CO.

going up in Baghdad. You
stop there in 1959. It will be

deluxe, and air-cpqditioned.
These

investments

are

great

vafue

internationally,
for
they
show our goodwill our desire to
cooperate, and jQjjtl confidence in
those countries.
It^helps build up
the economy of^our allies of the
free world, and helps to close that
dollar gap you
tyaye been hearing
so

much

about,

This

summer

our

',r ^

had

results

Other Contacts Abroad
All

AN INTEGRATED NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEM

WITH MORE THAN HALF A CENTURY OF SUCCESSFUL OPERATION—SERVING

omy.

Louis

nations

our

are

contacts with other
ttfe increase—as

con¬

Fay, 221

members

Company
GAS

now

and San Francisco

CORPORATION

•

Fay

FRANCISCO, Calif.—Wil¬

Montgomery
the

Stock

Natural

Hamilton

(Special to The Financial Chronicle)

Policies: David M. Kennedy, Vice-

the

with

With Hooker &

Chicago.

President, Continental Illinois Na¬

affiliated

George Mit¬

Monetary and Debt Management

Assistant
able

now

are

Management Corporation.

Vice-President, Federal Re¬

basic tional Bank & Trust Co. (Formerly

standard of living.

Whatever

serve

perS^n

1956

Forecast Forum 3 p.m. to 5 p.m.
Outlook:

Managem't

Neb.—Lyle Knight,
Mahoney and Irvin Myhra

Irvin

Business

Co.,

LINCOLN,

President.

chell

to the

(Special to The Financial Chronicle)

Co., John G. Searle,

December 20,

Brothers

With Hamilton

December 13, 1956

day, and the Com¬

ofStern

„

Mo. —Donald

Coburn has been added

staff

G. D. Searle

CITY,

1009 Baltimore Avenue.

munists give him two bowls of rice
and promise him meat next
week,
he is going to go communist. And

this

Industries, Inc., John I.
Snyder, Jr., President. (To be held
at the Chicago Athletic
Club.)

small

one

i KANSAS

(Invitational Luncheon)
U.

old

can

Smith, La Hue

With Stern Bros.

Selby,

December 4, 1956

the

with

November 29, 1956

But

half

Minn. —Leland

now

Co., Pioneer Building.

President.

that

period from
early June of

(Special to The Financial Chronicle)

Smith, President.

Safeway

the

With Smith, La Hue

1956

Peace Also Means Freedom from

the

hotel of Conrad Hil-

This outward flow of our
money
Europe.
They is bound to have^# definite staseriously, and con- bilizing
influence^ world econ-

Armstrong, the well-known trumpet player, made an extensive tour
over

Indiana
Robert F.

peace."

We have the greatest ideas in
the world to sell—peace and free¬
dom.
These
things the
whole

for

through

important form of

music.

November 15,

foster

guests

1957.

(Invitational Luncheon)

people-to-people
understanding, which is the truest
path

Cocktail

(Association

Block, President.

once

will

operating companies.)

February

Joseph

and

4:45-6:00:

An announcement will be made
a later date
setting forth similar

November^, 1956

not

widened

Reception
—

ton>g

Your orchestra

smelting, third,
increase in invest-

incidentally,

friendship.

and

mentioned' that

pie ex<*anfe of arJ? jls
0 *5? m.ost
e
e^j1Ve mei
^s^H&thening
world
.

must

(3)
Party

follows:

Co.,

will

regulation

Gqs Cq.;, Commonwealth
Co.; Peoples Gas, Light &

three

Steel

and

Coke Co.

information

abroad

methodsWnternational

gradual^ learn
other

can

each

mining
greatest

ii1S "^cessalY for the people of

all

ond,

$15

h^s been in motor
vehicles and in chqmicals, both up
$400 million this year.

interna-

peace

the

The
meat

understanding is advanced.

Since all

chink

billion of
government loans?)
Our private
investments comprise all kinds of
businesses,
as
well
as
mines,
factories, and oil wells. The biggesf js manufacturing, oil is sec-

dpar Dr. Munch:

'The reports of the Boston

include

Edisort

plans for meeting ex¬
into 1957. The schedule

Inland

Commission

rate

(2) Three Management Forums—
Presenting:
Northern

made

the

2:00-4:30.
Illinois

has

tending

quote President Eisenhower,
when he
said, . "Every possible

world

American

engage¬

members

abopt in the future,

Commerce

The Program
Committee, headed
by Russell J. Eddy, Brown Broth¬
Harriman & Co., announces it

Feb.

background in Illinois.

ers

national

They are
anything. May I

wants

another
that

finished

fact

conductor,
Dr.'three times the amount we had
Munch, and I tnink you might be 10 years ago, or about a $2 billion
interested to hear what he wrote, increase every year. (That does

"My

passing

Their

London.

tragic

their

The President said, in part:

just
in

world

am- sure

prises in foreign countries amounting to over $19 billion. That is

Eisen-

ballet
ment

somethings I
more

purpose.

enterprises abroad, and
they are increasing every year,
Today we have commercial enter-

of the

copy

President

ex_

ments and

see a

for such

U. S. Investments and Enterprises
Abroad

happened to

butfg"et

them-

Oistrakh.

nois

Stevens

(1) Luncheon 12:14-1:45: George
Perrine, Chairman of the Illi¬

•

speak

Chicagoland

Utilities
28, 1957.
This program will consist of:

the Adams

Johnson, Scudder,
Clark, Inc.

Hunger and Disease

$2,000,000, earmarked by

President for .this

This

very

selves.
I

was

will hear

good piece of public relations, for
it showed that we value tne same
cultural

but the

us,

David

"The

his company. Reservations
should be made with James W.

gain

effort

Barr, Chairman of the Board.
Arrangements have also been

Hotel.

talk

doing it. They

all-out

Montgomery Ward & Co., John

Forum"

Room of the Midland
Speaker will be Robert E.
Pflaumer, President of the Ameri¬
can Marietta
Company, who will

confidence.

are

branches

have contacts

can

nations

this, where

(Formerly
Arnold

January 24, 1957

the wisdom

CHICAGO, 111.—The Investment
Analysts of Chicago will hold a
luncheon meeting on Oct. 25 in

other countries.

many

is, it interested them,

European-

are

couldn't

calibre.

profound to

The entire

understand

one

all-American

fact

first-rate orches-

not sound

sense

Announce Programs

proud

very

Corp.

completed to present:

major sport

were

Paper

Corporation),

Alaremont, Chairman of the Board,

These big rid¬

are a

Orchestra

sense,

spiritual
us

Allied
Thor

baseball

are

moral and

January 17, 1957

changing
leadership,

material

John

(Invitation Luncheon)

role of

as well.
God give
8u,000 people watch in-,
for that task.
equestrian events.' It
be compared with the

ing competitions
in Europe.
We

such

ternational

athletics, as you
profound jas^
can
see
from
the
daily papers.
year
taug"h£. citrus packers
an
elfect on the German
people j10w t0
And the same thing in cultural
ship
oranges and can and
as Uncle Tom s Cabin had1 in
this
fields.
Last4 year
concentrate
their juice.
they sent us
Indians
country before tx.e Civil War.
their top violinist, now
learned how to rriake new
regarded
things
by our own critics as the best
with jute.
Literally millions in
Affect of Boston Symphony
violinist
in
the
world
Indonesia saw our TV, and
today,
they
this

exhibit

rdie

new

simply

but in

Jewish girl and her
see our
American team com¬
family, forced
gov-'
into hiding and eventual death
by ernment realized we could not: pete, and so creditably, against
the Nazis. Audiences were stunned..
riders
from
England,
afford to stay out of them. About
Turkey,
It seemed as if for the first time
Japan,
Egypt,
the
three
Argentine,
that

Reynolds Metals Co.,
Krey, Vice-President.

costly lesson^ Let us not have to
learn that leSspn twice.

the

area,

only
the
respected.
Once we
and
had
to* learn
a

are

disarmed,

In Aachen, Germany, last sum¬

Trade Fairs
But other countries

another-, broad

field of sport.

tragic

briefly

was

exhibit overseas, and only
those companies who sold
products
abroad coula afford to do it. '

Diary

was

very

send

"The

offers

part in

them

be.

Business

Yet the truth must be

again

strong

There is so much we can
dojto
fields make favorable contacts
with the
All of you no doubt know of the rest of the world that we
have
growth of the international trade
scarcely scratched the surface.
fairs which started shortly after
I would like to mention
very
the last war. At first our

blank look, and silence. We sometimes
wondered
if
the average
German
even
today believes it

MORE THAN A MILLION CUSTOMERS-CONTINUING ITS EXPANSION PROGRAM

The Commercial and Financial Chronicle

(1768)

Continued

Public

Utility Securities

===========

ifLY

By OWEN

from

last quarter

(when the sights are
In the last six
months, actual expenditures have-

page

set

at $38

billion).

somewhat

fallen

The Outlook's Promise

And Problems

Thus

Natural

Gas

in¬

was

able

capitalization on a con¬
basis may be estimated

but

solidated

in Texas in 1940, ac¬
quiring the assets of a Delaware roughly as follows:
Millions
company of the same name and.
4 '/<
first'mtge. bonds
its
1 subsidiaries,
the
business
$42.0
due 1981 _*—
corporated

dating

natural

distributes

sale
am

retail

and

The

1925.

from

whole¬
serving

Texas

extending

area

gas

company

5'*

Convertible pref. stock —
Common
stock
equity

through 20
with

(500,853 shares)

The

1,750,000

population

retails
gas
for
commercial cook¬

and

water heating, space heating
and
cooling,
refrigeration,
etc.
Industrial sales are made to oil

ing,

tool

refineries,

and
cement

manufacturers,

equipment
manufac¬

chemurgical
processors,
.hydrocarbon by-products manu¬
turers,

facturers,

aluijiinum reduction

Gas is sold at
wholesale to the City of .Corpus
Chisti.
Revenues for the twelve
rponths ended June 30, 1956 were
approximately
77%
from resi¬
others.

plant, and

dential

fq§qi

21%

commercial

and

the

The

•

City

'***/,-

100%

stocks of

common

separate

shown

...

trial

consumers

fuel) and to
Southern
Union

of this being used as

utilities,

three

GaS;" United

Houston

and

Gas

Natural Gas. The Pipe Line Com¬

operators in 77 fields in the Gulf

reserves.

Gas

buys

pany

created

91%

about

Coast

its gas under contracts, producing
the remainder from its own lease¬
holds

the

its
subsidiary.
supply during
months
period
ended

through

About

57%

the

area.

.■

"farming as well

Much

how."

knew

spending has been moti¬
the desire to apply tech¬
knowledge

gained

dur¬

ended

acquisition

the

for

forma

consolidation

1956, pro

30,

June

the

for

earnings

Share
months

Houston

and
Pipe

and

at $3.81

estimated

are

.30, 1956 was purchased from
Houston
Pipe Line
(now being

after

full

acquired), 1% from other pipe¬
lines, and 33% by contract pur¬
chases from producers.

stock, would drop to about $3.07;

the

conversion

strong incentives behind this
The persistence Of the cold
pattern
has;. been
another,

powerful

forcp|-

new

particularly

nuclear research.

have

;

Most of this is an old story and
far it has

thus

been

brush.

broad

pretty

been pointed

done

get

with

line

This

away

narrow

influ^pce by any

matter of me^ns.

has
from the

which

manufacshown sorae:

has,

tendency, to fall behind, may
7.6%

the

over

...

in. the

Even soft goods

turing,

many

Practically every"

supposed' to-share

gains.

of us find ourselves
in, where we suffer from a kind
cf "decimal pointities." We watch
prison

sharply ris¬

ahead

curve

-;
«

run^r

quarter/-

present

day-to-day jiggles and our ulcers

Paper, chemicals, petroleum, and
week's coal will run far ahead of late
sales don't top the per cent change 1955;' Durable
gocSds producers,
for "the comparable week a year especially of metals and machin-:
ago."
We
get
equally
excited ery, may up their spending rate
kicking

start

about

short

prices

money,
on

the

pay

all

and now,

utilities

months

have

this

industrial'

boom

year-long/rise of .some/ *
30% is anticipated in spending on'-:
commercial work.
•; /
t projects,

last

are

dition

The

slowing down (2%):
mining will dip (3%).. In ad-;

and

and want to know where

from here, a look at some
specifics is in order.
%
we

step up

16%, other transport by 8%. Only

Nonetheless,
live in the here

Railroads are planning
their spending clip by

5.7%.

for our
return we expect
we

investments.

our

since

fluctuations

run

costs

this

been

Price increases-play some part; /.">.
of exceptional economic
Indeed, during the lastr in this—but not much /thus far.'* ;.
Materials shortages may /make -it* ; ;'
quarter of 1955 and the first three
to
meet some/of taese'
months of this year, total value of difficult
a

period

stability.

"Extraordinary Luck"

much

trends.

the

for

underlying1

ordinarily lucky. /Every/lime one
kind of spending prop has been
else

gap.;

have

has

the

amples

wondered

good

businessmen

of economic

ac¬

ment

of
of

whole

:4%,

and

sales

traders

postpone-/*/
projects; however,/;
generally believed that it will^
only operate to stretch out the- "

if such deterrents cause-

manufac¬

horizontal.
In

contrast

the

actual

this

stability

situation—or

boom

perhaps

because of it—since everyone was

year////'*

•;

Housing Developments-/.

capital

outlays/ then,

the main propulsive force -be-}

are

government

into

Business

on
tenderhooks wondering which
inventories, plant and'
way
the cat might jump—we've
equipment, at. the same, time that witnessed more violent
swings in

spending

some

Autos and

their

curtailed

it is

almost

were

present;/;
However, additional cause i
/
optimism is found in the belief / /

hind

our

economy

at the

time.

embarking on a business sentiment this year tnan
for
program to reduce:.its very large
in any- otner of recent memory.
that some of the/other volatile/
expenditures by .some 25%»'WhaL
There
have
been
two
radical
No pro forma tabulation of pastwe all forgot/
elements may. not place too muchr
probably, was that about-faces thus far
and, of
earnings has
been"* worked out, the: bavm forces '
just
described
drag on the forward thrust gencourse,
there's still time left to
On
August
10
the; company but following
is
the historical were still' with
erated by such spending.
us,- and
that as
When?change our minds again!
At the
agreed to acquire all the common record for Houston Natural Gas:/
long as there was money, and turn of
you take
a long view, even the/
the year, I think the ma¬
stock of Houston Pipe Line Com¬
,
.
Earnings
Dividends
"weak sisters" in^.the 1956 econ-'.
mortgageable
assets
or
credit,
jority believed that 1956 prospects
pany from the Atlantic
Refining 12 Mos. End. June 30,
lying around, and people with t^e
1956
.'
$2.28
$1.00
resembled what Alan Temple, of omy have been remarkable strong;
Company, with December 3 as Calendar Year:
urge to spend it, some other group
by historical standards.' Take the
the
First National City Bank, called
probable date of sale.
The
1955..,
1.82
1.00
in the economy would pick up the
automobile situation,for example.;
1954i„_ ' $2.15
1.00
an "inveiTed saucer"—starting on
method of f inanphag/, the purchase
ball
and
run
with
it.
This, is
The sales total of 3,142,000 cars
1953
2.02
1.00
is complicated/and can be studied
a
high «plateau,
perhaps
rising
1952—__
1.32
0.80
exactly what did happen.
Eco¬
during the first six months of
iii detail in the prospectus on the
1951—%
1.49
0.80
slightiy to midyear, then drifting
nomic activity took only a slight
this year was 25% below the rec- new
issue of convertible prefer¬
down later in the year.
Just two
Net earnings of Houston Pipe
breather in late 1953. Then spend¬
ord pace a year earlier —• but it,
ence
stock.
The
sale
months later, in March, however,
price ap¬ Line for the
12
months ended
ing on housing started up again
still represented the third best try
proximates $38 million of which June
the feeling had
spread that the
30, 1956 were $1,850,809 after and
state
and
local
spending,
in industry history.
In housing,
about $12 million is represented
1956 "recession" was probably be¬
a
special charge of $59,058. This geared to the continuing increase
the 767,200 homes started through
by long-term debt to be assumed would
be
equivalent
to
about in population and the need for hind rather than ahead of us. By
August represent a decline of 17%
by Houston Natural Gas Corp. or
May, second guessers gave way to
$3.65 a share on the 506,853 shares public
services, made up some of
from last year's 929,200, but this
a
subsidiary, leaving about $26 of Houston Natural Gas but from
third guessers who began to think
the gap being created by the drop
amounts to an average annual rate
million net to be paid to Atlantic
this must be deducted the interest in
they
might
have
been
right
the
Federal spending.
Finally, in
of 1,120,000 units and only three
Refining. Houston Natural Gas is
Within just the last
(less tax savings) and preferred the fall of 1954, consumers joined first time.
years
of
recent
history
have
raising this amount by the sale of dividends on the securities issued
month we seem to have embarked
the
parade
as
we
entered
the
measured
up
to such a volume
$11.3 million bonds, $5.5 million
on
still
another round and this
by the parent company to acquire
polychromatic era of automobile
(1950, 1954, 1955).
debentures, and $10 million con¬
time almost all of the stops have
Pipe Line, reducing the amount
transportation.
vertible
preference
stock.
The to
>
Furthermore, in both autos and
been pulled out. The general feel¬
$1.56. The net income of Hous¬
new
bonds
and
preferred stock ton
housing,
the
major
adjustment
The
fickleness
of
economists,
Pipe Line has been as fol¬
ing
seems to be one of "prosperity
are being sold
to institutions and lows in recent
may
now
be completed.
Many
and of businessmen too, in this
years:
forever,"
or
at
least
straignt
the convertible preference stock
period has been quite amusing. through to the end of 1957. There observers believe that autos may
12 Mos. End. June 30:
|s being offered currently to the
1956
$1,850,809
actually add (o the boom from
After the 1955 boom in housing
are a few skeptics who grant that
ilendar Year:
public through a syndicate headed
here on.
Inventories have been
and
autos
proved that it could it may happen, but doubt whetner
1955
1,718,029
by the First Boston Corp.
cleared out at\a remarkable rate "
compensate for any laggard ten¬ our
1954
1,394,336
economic
visibility ever is
since they hitNjthe
1953
No
1,497,893
900,000 level
dencies in business spending, we
pro
forma
statement
of
that good. I-shall say more about
1952
1,437,227
last April.
1957 models will be
all shifted our allegiance to much
capitalization showing common
some of the cloudier aspects later.
1951
1,421,027
new and, from all
stock equity appears to be availreports, pretty
greater reliance on such expen¬
Houston Natural Gas has been
"sharp." They will be offered to
ditures and found it had to visual¬
Where We Now Stand
quoted recently in the Over-the- ize
a
market which may be both re¬
a
healthy economy without
Let's try to add up the score,
Counter-Market
at
about
31-33.
them.
Yet
housing starts have point by point, on where we stand ceptive and well-heeled — it has
The price-earnings ratio based on
been
the cash not the credit buy¬
fallen
by almost 30% from the
right now. The two outbursts of
recent
actual
earnings
of $2.28
explains why the
was

preference

5V4%/ convertible

■

reportedly already>

limits

collapse

not

measures

are

try ing to finance; on - a short-term {/ /
basis with banks to. a,void com-^ / %

turers

many

the

major

Some firms

almost 0 all

the

the spring

whether

might

economy

characterized

ex*

fill

excellent

mitting themselves to. high inter- '*y
est costs for years to come. Even'

three years,

some

this.

into

come

last

seen

ward.

ation

tightjrhoney..'

tivity—industrial production jigglea around in a two point range,
consumer
prices
moved
within

knocked out from under us, some¬

thing

targets, and so may!

essentially
side¬
narrow
range of fluctu¬

moved

output

We have also been extra¬

1953, for example,

Line,

June

been

war

24 indus¬
'(the greater part

Houston

Natural

vated by

period,

postwar

even

already

business

sales have been to some

primarily to explore and develop
additional

the

trend.

tribution

•

Production,

not

and dis¬
lines, in general paral¬
leling the Gulf Coast and con¬
verging into the Houston-Texas
City" area. 73% of the company's
transmission

gathering,

has a whollysubsidiary,
Houston Na¬

Gas

were

ing the war, and much more has
been generated by the desire to
add
to
that knowledge.
Rising
prices and rising wage costs have

does not have any produc¬
tion property but obtains its gas
under contracts with owners and

tural

start

is located
entirely within the state of Texas
hence apparently is not subject to
FPC regulation. The system con¬
sists
of. about
1,160
miles of
Line

Pipe

Houston

company

owned

//;'

nological

etc.

options,

and borrowing abil¬
possible
to 'argue
on

Finally, a
great deal
of
impetus to expand has come from
technological
advance.
At
the

basis would

consolidated

col¬

by"any
income,

consumer

(c)

equity
on
a
nonapproximate 11%,
**Would increase to about 28%
following
conversion
of
preference
stock, exercise
The

sheets.

balance

Corpus

of
as

It's

sales,

industrial sales,/ and

from

Christi,

companies

confidence,

squeezed

Immediate Past and Present

is it more

either side of the fence!.

22**

18.0"

—

equity

^Combined

merged

company

residential

$83.0

and

communities.

about 95

10.0

again
threat

ity?
6

accordion v/hich will

real

counties near the Gulf Coast
a-

51%

5.0

stock

goals,

consumer

lapse
Percent

8.0

198b

due

debs,

S. F,

Preferred

those

reasons.

of us than on
projections.
•
The capital b.QPjq/is not going

ing

earlier

Houston

short

originally fanned because of the
steel strike and for other

Natural Gas

Houston

f958

Thursday, October 25,

...

—

AltEA RESOURCES BOOK
area

offers

serve

would

much

forma
based

opportunity
to

14; based
earnings, 8.4

pro forma earnings fol¬
conversion, 10.4 times.

«.v»ak

1955,

greater

even

again

once

With Deringer

Box 899,

Dept. K

Faulkner

Deringer

Stautz

to-Bay

Salt lake

now

Fla.—Robt.
connected

with

1442 Gulf-.
He was for¬

Utah

such
Nor

Columbia
Inc.

John

Securities

Florida, "3839

Boulevard.

Parrish
with

Company

Biscayne

hold... out.

completely

the

boom

I
in

spending.

This

ture

was

tended

business

steam and, at least on

who

vantage
a

At
as

and

times,

jerky

Presleyt

that

says

point

"reck

Canadian
from his

over

looks more like
readjustment."

roll

about
the followers of Elvis
has

been just

1955.

like 22%;

pur¬

three

months

(This might be

seems

assured

IV2 million

dealers'
-

looked^

There

put.

sales.

pushes

late

July

and

August,,

this slightly higher

—

hands.

is,

yet,

sign

that

homebuilding activity is going to

turn around, but the rate of deto cline has slowed considerably. To
$35.3 billion, or 23%. More sig¬ the extent that tight money is a
nificantly, more of this yearly to¬ factor, any renewal of activity will
tal has been pushed ahead into the be contingent upon more realistic

made

regardless of what:

Manufacturers
burst of steam
at the start of a model year in
order to get adequate stocks into
happens

always

By late January
The latest survey,

within

something like 1,150,000 in
the current quarter.) This increase

and February of this year it
more

back

vs..

planned
basis, has been getting bigger all

misnpmj&r. I like much better
phrase "Used

1955.

consumer

spending in the early part of last
year's upswing. It has since picked
up

held

1956

10% of the fourth quarter rate for *

which

starter

behind

the time. In November of last year

the

capital

kind; of expendi¬

slow

lag

have

models.
Output is
expected by those in the trade to
increase more than seasonally in

r^fer, of course,

the increase was slated to run some

friend

connected

been

will

picture.

who

chasing

dynamic factor in the present eco¬
nomic

The popular term

(Special to The Financial Chronicle)

Fla.

luck

this

has

the

become

for

knows how much longer

one

unusual

With Columbia Sees.
MIAMI,

has

spending

ers

optimism both coincided with new
revelations about the one clearly

"rolling adjustment" is something
of
:

boom

smooth process.

merly with A. M. Kidder Co.

City 10,

proportion, and yet
something else has

Inc.,

Boulevard.

well.

CLEARWATER,

start

business plant and equipment, re¬
inforced by several other factors

Stautz

(Special to The Financial Chronicle),

COPY

the

assemblies

into fill the gap—a fantastic

come

FREE

auto

and

renewed

Write for

reached

rate

lowing

industry.

the pro
times; and

;

Number 5580

Volume 184

interest

mortgage

funds, or
savings:^

The Commercial and Financial Chronicle

after

lessened
users,

hesitation in the first

some

quarter

reached

1956,

(1769)

ficient momentum to affect

the next six months.

new

All

larly true

Situation

Inventory

income

upon

the steel

strike,

and farm

If the adjustments in autos and In addition to purchases of goods,
housing are now completed, the consumers continued to evidence
adjustment which was feared in tiieir insatiable demands for serv-,

equipment.

that

now

have satis¬

fied the most urgent demands that

this

higher rate of personal peaks in the second quarter. Sales js not to say that we may not'see
during the summer held up very a
cdntirnietion
of
some
"sore
well, too, despite the inroads made spots," such a'g lumber, textiles,

The

rates,

from'Other

competition

...

present

were

the

present

ficial

upward

spending

inventory
have

seems

materialized.

it has been cleaned

never

perhaps

quickly

up so

ices of all kinds.

sumption

further modest

creased

inventory

lation.,- (Inventories
of

accumu¬

are Tan

hard

to ascertain what has hap¬
pened until long after the fact.)
Inventory accumulation has pro¬
ceeded at a relatively high pace
since

ever

the

second

This year,

1955.

the growth of

off' and inventories
accumulate;" inven-

sales slacked
continued

quarter

tory-to-sales ratios started to rise
at

the

both

and

the

manufacturing
retail

level

level,
least

However, whereas
in 1955 almost all types of goods
were
being stocked, this year's
through April.

additions

concentrated

were

autos and steel.

expenditures

only 35%.

Another

area

ignorance where it is sometimes

Since 1950 alone

by 50%, although total

risen

has
and

even

the

will

not

but

year

awarded

before

residential

dar

corporate

and

ly to be reduced unless we can
see a bigger surplus than the one
now in prospect.
All in all, we
seem currently to be in an interval of continuing, but lower, exPension where there is opportunity but very little room for mis-

be
This

only the
firms that actually
participate in
the road building but
eventually
will encourage formation of new
business

takes.

restaurants, and motels.

"ess failures makes that point in
more
telling fashion than any

along the routes constructed, such as service stations,

The rising

Farming Note

may

have

far

inventories

out

line.

exceptions.

There

are

Petroleum

too

not

are

few

products

farm

incomes

The crucial

up.

terioration

farm

but Suez may solve that
By the same token,
however, if stocks in general are
just "about
right"
for
current
business levels, they may prove a

farm

restraining

token,

output

accounts

are

one,

for

us,

tion

too.

for

unless

balance

business

rate

ent

influence

the

tions of

steps up its pres¬

growth.

(Interpreta¬

inventory statistics,

than almost

the

on produc¬
of the year

any.other element in

business

situation,

tend

with the color of the glasses

vary

period

when

Tax

Alternative

the de-

Hdence

income, in

incomes

were

rising,

rapid

increase

fits

was

the

products.

supply of
the
same

probable

reduction

for

the

Production

prospec-

income.

livestock

products

seems

beOevelling off for the
being.
Crop acreage har-

time
vested

this

year

hpirm,

lis

expected

on/in ^itil

1Q^

cloud
'

prevails

Government

Spending Rise

accounts, then, for four out
elements which

should
'should'°rglam
andrha.y' In"'
supply

comes

rise

is cur-

prices

rise

of five of the key

tailed,

have sparked

faster

ness

Bank payments may
to income as well.

changes in the busi¬
picture in recent years. One
clearly positive for at least

the next six months and

probably

longer, and the other three do not

likely to tug very hard in
direction. The fifth

seem

the

opposite

is also neutral

Whether
other

not

Federal

grounds,
spending

ment

the plus side.

you

Govern¬

going

rise

soon

ulation is hard

all

government

know

first

the

feel

will

because,, as

well, the effects

too

half

say

stim¬

the

spending
each

during

year

are

than counterbalanced by the
exacted

taxes

support

it.

slight surplus is projected
fiscal year as a whole.
This would represent, in the first
fact,

this

for

the

However, if the surplus is
employed, as now seems likely, to
ness.

reduce

Federal

the

debt, it will
merely make funds available for
private investment in an era when
demand

the

for

such

accommo¬

dation is running

high.
dynamic fac¬
addition, three
slower-moving spending streams
to
be considered.
The prospects
So

tors.

much

for

the

There are, in

also

for

these

the

optimistic

add

moderately to

tinge for

the next

half year.

than

that

assure

consumer

continued to

expand.
In the first
half of 1956, retail
sales other than autos averaged
mands have

6% above the year earlier period.

comfort

In the first place we are pinning
? great deal of faith on a single
f.?ctor' .businesus. caP]tal expansion,
Neve.r in our hl*toJyfhas such ex"
far\sl0n proceeded for any very
Peri?d °f time withoutisiginterruptions.

This

his-

adds

which
said

nothing

about

home

con¬

nomic

auto

output.

Sales

goods like clothing,

gasoline, general merchandise,

bad

very

the

and

can

one

eco-

can

be-

capital

arily,
in

factor—business

one

expansion, and,
secondthe slow persistent rise

Book,
Labor

25,

^questions

(Paper)

and

15c

Labor,

Statistics,
New

Ninth

Y.—

Members

1701

the

Armed

Life Insur-

Street,

1956

W.,

Bargaining
U.

Near

Assured

Activity

A11

...

elude

that

the

near

...

future

pretty well assured
good business,
high capital spending and
tight capital markets. We are now
in

the quarter when retail spend-

should

seasonal
which
next

if only on a
The questions

basis.
be

can

four

seem

high

raised

six

months

much

pose

about

business
time

confidence, but

for such

the

the
not

threat,

The election outcome could

affect

it takes

influences to make
I have

wisdom

with

doubts
which

monetary policy is being administered. Money will be kept tight
as long as it it
necessary to slow
up the boom, but not so tight as
to
precipitate
a
crisis.
Rising
and

have

prices may put some
profits—indeed, they

already
market

done

and

recognizes it.

the

How-

regard this as a
problem, I doubt
whether the trend can gather suf-

while

serious long run

edition,

m a

Consumers

suming?"

one

der whether

recent article,

Tired

can

very

10 years as

Some

the

underlying forces
start

sooner or

people,

and

for

are

now

jri birth rates which occurred dur-

ing the depression of the 30s. No
significant upturn in family formation is in prospect until the mid60s. A second element in demand

purchasing power. Our economy has now "grown up" to the
surplus
assets

cash

There .must
even

also

end

and
of

war.

additional

some

debt

be created to finance

expenditure.

must

liquid

the

limit,
though hard to define, to the

amount
can

balances

left at the

consum-

Similarly,
terminal

which

there

point

to
on

some

upward revaluation

of capital assets.
Last but not
least, demand isn't absolute, but is
related to price. This is particu-

all

expended

for
but

Osake

cost

(Finland)

Denmark,

1956—Royal DanisftTVIinistry for
Foreign
Affairs,
Copenhagen,
(paper).

School

State
Labor

Industrial

Relations,

Cornell

and

Uni¬

versity, Ithaca, N. Y.

will provide a part. The remain¬
der will be provided from retained

and amor¬
tization and, if necessary, from ad¬

ditional financing.

However, it is
anticipated that further financ¬

The
at

Columbia

—

University

Press, New York, N. Y.
Our
of

With

Trade
studies

Institute

Canada—Digest

Chamber

of the United

merce

Com¬

States, In-

Relations

ternational

Washington 6, D.

ment,

Depart¬

C.—on

request.

less

Edition

—

Donald
Hill

Anderson

and

Butterworth—McGraw-

Book

Company, Inc., 330
Street, New York 36,
Y.—$6.50.

Productivity

Trends:

search,
New
cents.

Bureau

cost

integrated unit for

products.

Its

iron

and

principal

products

are

hot

di¬

steel

finished
cold

and

rolled

sheets and strip, tin plate,
plate, galvanized and black
sheets, plates, structural shapes
and merchant bars and shapes.'
terne

■

For the six months

epded June

30, 1956, sales, income and other
operating revenues amounted,, to
$350,284,000

net

and

income

$28,961,000 compared with

reven¬

of $310,153,000 and net

income
period

$23,033,000 for the
1955.

For

revenues

the

were

income

same

full year

lf55,
and

$629,575,000

$48,289,000.

Paul Reinisch
Paul

Reinisch,, Vice-President
of the New York Hanseatic Cor¬
poration, passed away Oct. 7.
*

Capital and

of Economic Re¬

261
Madison Avenue,
16, N. Y. (paper), 50

York

line

MIAMI,

Chronicle)

been

Frank

Fla.—iVTrs. Ruth Geier

added to the staff
Eaenfieid 6z Go.,
Northeast Second Avenue.

has

-t

Frank Edenfield Adds
(Special to The Financial

Labor—John W. Kendrick—Na¬
tional

3.90%.

Third

West 42nd
N.

than

versified

Clare Wright Barker,

Dennis

Ira

Retailing,

with the appli¬

the manufacture and sale of

net

Principles

redeemable for re¬

purposes

constitutes

copy.

National Steel is the fifth largest
steel company in the country and

Unlimited, 7532 Parkdale Ave¬
nue, St. Louis 5,, Mo.
(paper),
per

cation of funds borrowed at

cents

not

are

funding

—

redeemed

1, 1984, and beginning

1964, for the sinking fund at
100%.
Prior to Nov. 1, 1961 the

ues

Analysts

those

for

Democracy

Platform

redeemable

are

option of the company at
regular redemption prices rang¬
ing from 105.13% for those re¬
deemed prior to Nov. 1, 1957, to

by Batelle Memorial

—

bonds

new

the

steel

Everyman's United Nations, Fifth
Edition

esti¬

of which the current sale of bonds

after Nov.

(paper).

Survey

funds.

own

complete the program,

—

Pankki, Hel¬

over

construction, of
about $15,000,000

mated $140,000,000 will be needed,

the creation of additional debt
the basis of

Theodore W. Schultz—New York

heading deeper into

the period of lower family formation which began some four to
five years ago, reflecting the drop

Economic Test in Latin America—

many

commodities like houses, families,

\ye

bonds

tory.
I don't know when that
point wjn come, but I'm sure that

through June 30, 1956,

Steel

provided out of its

was

100%

Economic

they

£very year which passes brings it
nearer.
The .basic element of de-

En¬

Record

Review

sinki, Finland

aJte^ eYfry war in°ur bis"

mand

With

Kansallis

going

are

later

Columbia

"The

1950-1956"

Economic

they have in the

the

1952

National

ing will be needed.

Denmark

Columbia

$5.00.$k

last decade.

mentioned

From

not

book

mort¬

bonds will be applied by the com¬
pany to its construction program.

—

$35

—

first

series, due 1986,
99.625% to yield 3.90%.
Net proceeds of the sale of these

Press,

Events

Corp.

trations:

are

Steel

f>f earnings, depreciation

record

a
—

cyclopedia Supplement of Illus¬

won-

likely
to increase their expenditures as
rapidly and persistently in the

supplement

and

1950-1956

First

gage bonds, 3%%
at

University

rate

Con-

well

consumers

Second

—

New
York,
Illustrations and
text will also appear in a sepa¬

^cTve
cIpacitTVwfe no^one
ene(:^lve capacity wniie no one
"Are

with

illustrations
events

bave

Future

this possible difdegree, I would con-

1025, New York 1, N. Y.

The

Co.,

of a group that offered
publicly^
yesterday (Oct. 24) $55,000,000 of

$300,000,000

S.,

Columbia Encyclopedia

replace depreciation and
obsolescence or as a substitute for
cost labor. Even such expen-

pjay out

Allowing for
ference

—

Corp, and Harriman Rip¬
ley & Co. Inc. are joint managers

which

Collective

Loeb

Boston

•

Guide

Washington 6, D. C.

•

Life Insurance—A

ance,

Conir

Offered at 99.625%

Bureau .National

341-

York

Forces—Institute
.

Mutual

Barnes—American

Council, Larchmont,
(loose-leaf binding).

Kuhn,

(quantity

55 cents.

for

Investment

National Steel Bonds

request).

Department

Buying

Guide

and

an¬

States, 1615
Washington

W.,

Labor

Buying

Funds

—

Average Retail Prices, 1955—U. S.

Avenue,

Revolu*-

Expectations—

panies—Leo

Develop¬
Commerce

United

Lands:

Rising

Industrial

Your

N. Y.

Street,
prices

D. Murden
Foreign
Policy Association, Inc., 345 East
46th Street, New York 17, N. Yv
(paper), 35 cents.

Office,
(paper),

Community

Chamber

Research

facture and

the

„

Earnings-

Forrest

Department of Manu¬

—

ment,

Printing

Yom°

Booklet
swers

may be true that-over half of
current capital spending is for
Purposes other than expansion—

state and local outlays.
An

question asked

immediate

outlook

bank

ever,

of nondurable

situation

prettty enthusiastic, depending on how much you are willing

stock

and

Fact

Atom

would answer affirmatively the

•

come

pressure

reduced

for

farm

This

spite the restraining influence^on
of

troubled

?_nly Pr°duce in order to consume

prosperity

the

to0uUou'°bfsisUn planmng °" a COn"

equipment makers.

wages

struction

greater

Sales of household goods rose de¬
demand

Workers'

Washington
$1.50.

Soil

some

prosperity for all
those dependent upon him. A cut
in acreage cultivated will be small

about

income and de¬

add

greater

themselves felt.

Expanding Retail Sales
First:

(Paper)

1956—U. S. Deparment of

tion

of Technol¬

Calif.

Accumulated

Underdeveloped

•

American

be second place, I would
make th? hoipely point that we

the farmer does not automatically

available to individuals and busi¬

usually
marketing fall.

Unfortunately,
however, it might be noted as an

small subtraction from
spending
power
otherwise

instance,

since

aside

for the first time in several years.
How

—

$1.00.

Cliffs,

Street, New YorkilO, N. Y.—$10.

•

Section,

•

Prentice-Hall,

—

Robert S.,Holzman—The Ronald
Press .Company,
15 East 26tb

Sup-

Departrpent of
Labor, Bureau of Labor Statis¬
tics,
341
Ninth
Avenue, Rm.

This

Wermel

Institute

Pasadena,

ogy,

Se.veral considerations call for
caution in present commitments,

nificant

Relations

California

many

Considerations

Michael

—

.Industrial

•

Quarters that the course will be
uniformly smooth and untroubled.

generally
unusually

tive improvement in farm

faii

looking

than

Approaches

plemental Unemployment Bene¬

•

put on!)

you

are

factor in

Magazine

Inc., Englewood
(cloth), $3.95.

among these
backinfluences, we have the
problem, which most of us

cline,

Planning for Profit and
Security — By the Staff of
"Changing Times,", the Kiplin-

ger

just

of faith in our economy's long run
future to have somewhat less con-

Living—Wiley

Meier—John

ment

Finally,

fof almost persistent de-

Develop¬

Success With Your Money: Invest-

ground

five years

Economic

& Sons,

rounded out another year in
which economic forces have been
have solved the problem for that farm
regrouped for a further explosive
industry as steelm4kers' crowded had began to believe would be Push upward.
We may well be
order books now indicate only too "always with us"—just like the entering an historic capital boom;
well. In other lines, on the whole, poor. This time,
however, the note the confirmations multiply daily,
there seems to be general agree¬ is
a
more
favorable one
After However, it does not evidence lack
ment that

1956—Thomas

Inc., 440 Fourth Avenue,
(1 New York. 16, N. Y.—$6.

—Government

that

and

Richard

of busi-

curve

Book

ment: New Patterns of

economic analysis.

Favorable

Science

municipal

half

may

program will benefit not

been, cleaned

mort-

offerings. Your tax bill is unlike-

January.

i»

which, I believe, is
partly ahead of us, makes
for a greatly enlarged calen-

still

Auto stocks have

out, as noted before,
by production cuts and strenuous
selling. The steel strike seems to

actual

some

of,contracts

decline

room

further!

much,

see

spending this
billion

outlays

boom

gage demands

The Highway Aet of 1956 will in time acthese

longest

Othe4

Co., Ill Broadway,
York 4, N. Y. (cloth), 30
shillings.

and local governments.

celerate

this

tively high cost of money—unless

steadily
upward,
rapidly, is state

last,

American history.

It will also be a
peri0d of very great competition
^ jong ^erm funcjs an(j a rela-

very

Year

Skinner

sumer's budget.

in-

whose spending

group

advanced

con-

have

Jong

competitive

sellingmore so
since basic expenditures for food at higher prices are
likely to take more ot\he con.

amounts laid out for services have

that we,are again ready for some

period for al|

and

New

This will be

Defunct

*Stock

checked, it
automatically choke off, at

could

Companies—Removed from the
Exchange (London) Of¬

•

of prices is not

course

war.

immediately '/after

2SP-

ctf

The Commercial and Financial Chronicle

(1770)

Continued from page

and the adjustments to them,
much easier for all the people.

and/ corn-

obsolescence;

and

ance,

age

Restraint

parably heavy investment for_the
same purpose will continue.
Fur-

supply is our
the dollar

money

of keeping
and
your

hope
valuable,

depositors

should know it.
'i

For I

convinced that despite

all debate about whether the bond

costly. This sort of invest-

ment

adds

markets

money

free

are

dom, those markets are going to
to act as if they were

ductive

little directly

free, and

search and development;

policies and actions
guided
accordingly.

our

timated

that

That merely means that as the de¬
mand for money rises, so will in-

will

laid

of course, the
reverse also. It is simply not real¬
istic thinking to expect money

business

terest

rates—and,

rates to fall

face of rising

the

Outlook
at

for

Rising

last

long

the

real

topic, and I may as well tell
you at once that my outlook is
for a gradually and irregularly
rising trend of interest rates for
some years to come.
I do not base
this entirely upon the historical
and very long cycle in interest
rates, though I do think that point
should

not

ignored. I rest my

view primarily upon three points,

First, there is an immense de¬
for capital, both at home

mand

abroad.

and

"under

The

this

pur¬

spending

also

for

goes

devel¬

the

the idea

best

that

means

inflation

promoting

unending prosperity, nevertheless
full employment is still the first
of

concern

governments

where, and they will
lengths to secure it.

every¬

any

•>

Third, and based, I Suspect, to
considerable degree on the first

two,
run

there is the dynamic longgrowth trend in our economy

home.

Personal

consumption

expenditures show every appear.ance of being a function of per¬
sonal income, with every increase
in wages regarded by a big seg¬
of the

ment

for

population

base

further

borrowing. There is
prospect of an early reversal

the

almost

automatic

annual

increases in wage rates, and with
business as a whole prospering,
these
,

increases

ognize

passed

governmental

sector,

can

spending
trend.
for

clearly on an up¬
every level the need

facilities is being trans¬
into demand.
All this
is

lated

equivalent

investment

spend¬
ing, which produces increased in¬
without increasing consum¬
able goods. Especially notable in

come

this regard, of course, is the out¬
lay by the Federal Government

profits

"Those

who

shrink.

vestment by this Ration's business

community.
The
figures
have
been going up year after
year, and
give every promise of continuing
in that direction.

Fear of Over-Production
Some

people worry about this
investment leading to a condition
of over-built production facilities.

They

have

been

worried

about

this

point ever since the end of
World War II, and yet production
has not been able to overtake de¬
mand except for brief

in scattered fields.
It has
been

periods and

thinking in
experience should

terms of prewar
realize
that
the

cogently

pointed

by Dexter Keezer, of Mc¬
Graw-Hill, that almost half this
year's planned invesfment spend¬
ing

will go merely to overcome
the ravages of wear and
tear, old

issue

I don't think such

System policy.

Treasurer.

Morgan Stanley Group

time,

Secretaryand
Goos,

At the

rate

Malcolm

and

will

the

has

Koenig, VicePreV dents;

decline, and

calendars

Ed¬

Jr.

r y m e s,

extent upon market expectations
with
with regard
regard to
to Federal Reserve

Bank

accounts.

ekind,
Ely Margolis,
J. Randolph

and Edward J.

Inc.

Phillip
William
J.
;

Wo b b

may

same

the

board

a n-

nounced that

Offers Con. Ed. Bonds

Conclusions

have

created

leads, in
opinion, to these conclusions:

of-

main

the

which

the

situation

rules

inferred

Developments, ;

from

measure

1, 1957 to the principal amount on

1955, for the purpose of acquiring,
exploring and developing natural
reSources.
Its principal office is
iocated at 9700 Euclid Ave., Cleve-

Current widespread criticism of
Reserve System policies

Federal
of

monetary

restraint is in large

self-contradictory. Policy
charged with being too harsh

word, future interest rates,
though they may be rqodified by
sentiment
and
by shifting psy¬
chology—by guesses about what
the Treasury and the Federal Re¬
serve
are
going to do—will de¬
pend

business

upon

conditions.

And business conditions look good.

the

over-all and
I

fo&

Break

light

the

basic

Spiral?

these

have

one

Jwoad,

considerations,

been

unable

Part of the

affect

both

and

borrowers

part

and

lend-

Decreases

whole

which

there
A

are

real

line
simul-

all

know,

every

moving
we

and have been soft spots,

Jjoom possibly
Can

may

here

anyone

come

imagine

what the picture would look like
if last year's consumer
spending
boom

and

boom

last

were

year's

added

housing
top of this

little

tions still

governments

direction

the

unex¬

lightly,
Perhaps a small and temporary
interruption will come as a result
the

squeeze

margins.
^

may

gested,

Possibly

it.
my

Reserve

business profit

But,

tight

view is

restraint

that

has

money

have

sug¬

Federal

been

ex¬

tremely gentle, and I do not be¬
lieve

the

brakes will

applied

Columbia

held

have

Reserve

credit

their

money

depositors

cannot

Joins

Though

"new eras"

proved

illusory,

that

the

past,
it is

tors

tell

since

Goodbody Co.

Ely

(Special to The Financial Chronicle)

ST.

(special to the financial chronicle)
MIAMI, Fla.—Charles R. Damiano
has joined the staff of West
Florida
Securities
Co.,
Inc. of

Merrill Lynch

Fla.

with Gerald R.?Jobin Investments

Ltd., 342 Beach Drive, North.

With Merrill Lynch

Adds

(Special to The Financial Chronicle)

ST.

been

have

Fenner
son

& Beane, 100

ter

PETERSBURG, Fla.—Wal¬

Merrill

MacConnie

now

with

Lynch, Pierce, Fenner &

Beane, 568 Central Avenue.

East Robin¬

Avenue.

With Coffin & Burr
Bache Adds Two

(Special to The Financial Chronicle)

ST.

PETERSBURG, Fla.—Gor^

from

Avenue.

business profit

PETERSBURG,

Foster Pate has become connected

Tallahassee.

don

squeeze on

become
associated
Co., 271
South

Joins Gerard R. Jobin

direction,
may be exploded.
For brief pe¬
riods, slackened growth may come
a

has

Bache

Road. Mr. Eiy has re¬
cently been with Harris Upham
& Co. and prior thereto was local
manager for Stanley Heller & Co.

With West Florida Sees.

and

when, or from what
the present new era

(Special to The Financial Chronicle)

County

have

undeniable

war.

soodumene

PALM BEACH, Fla.—Valentine

Biscayne

3839

ORLANDO, Fla. — Eugene W.
Boylston has-been added to the
staff
of
Merrill
Lynch, Pierce,

the

of south-

14 Northeast First Avenue.

State concepts, in¬
continuous full employ¬
have introduced new fac¬

especially

ffiVision

to
j

Ely With Bache

added to the staff

Securities Company,

Welfare

cannot

planned is a thorough geophysical
investigation.

MIAMI, Fla.—Howard N. Pear¬
is now with Goodbody & Co.,

cluding
ment,

other ore that may be found
thereon.
The immediate work

have suffered.

hailed

son

get

said

„nm

aeareeate

any

(Special to The Financial Chronicle)

hence< liquidity with respect to
of

an'

^fneaTc^mfsitflted

through the discount window, and
ability

acmiired

for

still

+uQ

+u„*

reported

with

current

governments

Federal

T7i^„

1955.

has been

way

Banks, though largely divested of

access

and

'°!/f' F

(Special to The Financial Chronicle)

largely of inventories and accounts receivable.

reserves,"

and

MIAMI, Fla.—Ronald C. Shum-

large holdings of

primary interest of the
is the exploration for,
if warranted, the development
mining
of lithium-bearing

company

Corpora-

among

consist

The

With Columbia Sees.

declined somewhat because assets

"secondary

totally

company

Ohio,

land

though below the recent
high record. Working capital still
is going up steeply, with^ current
assets still twice current liabil¬
ities, though quality may have
now

the

endar year

assets,

short-term

pected time. But while it lasts, its
stimulus to capital and
consump¬
tion
spending is a real factor
which
cannot
be
passed
over

notice.

have

past,
only imaginary.
Past ones have been exploded
by
a barb from a
totally unexpected
a

the

are

As with "new eras" of the
this one may be

held, and there are sav-' Inc.
ofFlorida,
ings bonds, convertible into cash Boulevard.
on

supplies
Boroughs

compares

dangerously illiquid. 'Cash hold-'
ings of persons and of business

year's capital investment boom?

and

1956,

has become'

still

•

revenues

1985.
j

Edison

service

Lithium Developments, Inc. was

organized in Delaware on Jan. 24,

and

liquidity undeni¬
ably have taken place, but much
still exists; I cannot believe the
economy

$1 per share.

"PrgrofsTnTome'^tfo^^imtres" '<*st Manitoba® Canada, which enincome deductions of $74,391,.•<;0 ™ P' nf'^Xtoe'comoanvta!?
000. This
with operating i®"es, and
h e
of $493,620,000 and gross
!beParfnE minlraf
to
income of $72,864,000 for the cal-i a lithium- beanng^minera^ or tor

the

„

City, is offering a new issue

of 600,000 shares of common Stock
of Lithium Developments, Inc. at

Manhattan, the Bronx, Brook-

31,

extremely
high
degree
of
liquidity with
which the economy entered the
postwar period.
ers,

lyn, Richmond and most of
Queens, and in Westchester
County, excepting its northeast¬
ern
portions. Gas service is also
uiuviueu
in
vdiiiiua
sctuuns
provided
in various
sections ox
of
this area, and steam service is provided in parts of Manhattan.
For the 12 months ended July

seem¬

sumption and investment spend¬
ing feeding upon each other. It

situation

ing iacK
ing
lack oi
of effectiveness
enecuveness is due
due io
to
high rates of income tax, which

have risen each year; great quan¬
tities of short-term governments

hardly can be called a boom, real¬
ly, because that used to describe

electric

investors in enor¬
quantities, and debt (except
Federal
Government)
has con¬

guess what factor may be the one
to break into this spiral of con¬

Consolidated

absorbed ' by

tinued to grow.

Oct.

after

and

Loans and investments have been

tions."
a

Association, of 115 Broadway, New
York

mous

option of the company before
Oct.
1, 1961 at 107.14%, and at
prices decreasing annually thereafter to 100% on and after Oct. 1,
1985.
Special redemption prices
range from
102.14% before Oct.

experience do not apply
without
considerable, modifica¬
prewar

redeemable

are

the

Welfare

new

bonds

These

All this discussion

and dangerous, while at the same
State, time it is said to have been inthe policy of full employment and, effective.
the more
equal distribution of
Restraint has been effective, but
national income are postwar de- some of its effects are by their
velopments. Between them they nature not visible in statistics.

out

will

the election

President;

lower

"prime loan" rate will be
affected much, nor will mortgage
rates, but commercial paper, ac¬
ceptances, and Treasury bills
as

are

later.

in¬

bond

new

Chronicle," put it:

justify a cutback in this sort of
spending?
capital

rec-

probably

loans will level off

and Financial

And

and

&\Co.,

Inc. Stock Offered

taneously.

there

it,

the change

comes,

recognizable.
Then a trend
to
yields will develop which
last a year or so, as in 195354. Treasury securities yields are
especially
sensitive
to
such
a
change, being based to so great an

and

money

Goos

directors

Viner

announced

will be accompanied by a change
in credit conditions, and it will be

temporary

in the

board-of
A.

ward

Lithium

was

then

The

of business

And

Names New Officers

start

Can anyone see any
prospect in the years ahead of a
state of world peace which will

for defense.

such

when

But

mass

last long enough to produce some

improved

What Will

the

Phillip Goos
Morgan Stanley & Co. and asso¬ f i c e s of the
ciates offered yesterday (Oct. 24)
company after
Nov.
1
will
be
consolidated
at 26
may
react
quite
sharply.
Bill $40,000,000 of Consolidated Edison
Fear of Political Change
yields, you
remember,
skidded Co. of New York, Inc., first and Broadway, New York City. Offices
Other people are apprehensive about 180 basis points —f- from refunding mortgage bond<?
41A% previously were at 11 Wall Street
because a possible political change 2.416% to 0.616%—between June series
The
M, due
Oct. 1, 1986, at and 46 West 55th Street.
in the Administration at Washing¬ 1953 and June 1954.
Long-term 102.14% to yield about 4.125% to branch office in Bangor, Maine
ton
may
cause
businessmen to Treasury bonds yields fell from maturity. The issue was awarded will be maintained,
alter their development programs 3.17% to 2.50%.
These yields in at competitive sale on Oct. 23 on
Mr.
Goos has been
associated
and cancel their capital
invest¬ Treasury
securities
are
much a bid of 101.4291.
with the company since 1946. For
ment plans.
To me this seems more sensitive. They are affected
The proceeds from the sale of the
past several
years
he has
most unlikely.
The welfare state not so much by changes in the the new bonds will be used for the served as Vice-President.
.«i..! f ' r
s\
'
.'
'
idea is here, and this is one of the actual availability of funds, as by
payment of short-term bank- notes
points on which there is no dis¬ market expectations about what and the balance, if any, toward
agreement between the parties. It Federal Reserve policy is or is payment for additions to the com¬
means
that
unemployment will going to be. The discount rate no pany's utility plant. The company
remain low, and spending high. doubt will
be reduced
once
or
is engaged in a construction pro¬
Isn't this what practical business¬ several times, and a really suit¬
gram expected to involve expend¬
men are interested in?
able opportunity for a cut in re¬
itures of approximately $650,000,It was recently announced that
While I dislike and distrust the serve requirements may be pro¬ 000 for the years 1956 through
George A. Searight, member of
vided.
"new era" idea, I am forced to
1960.
the
New York
Security Dealers

along.
In

bond markets will be able to

oped" countries are pressing for
development, and the Aswan dam
grant that the changes of the last
is only a small instance of it.
quarter-century have been fun¬
Second, there is the welfare"
damental, and these changes have
state idea, which also is world¬
multiplied since World War II.
wide. Though there are signs re¬
As Dr. Paul Einzig, in an article
cently of some lessening of con¬ in the
"Commercial
fidence in

when

^iit;

A great deal of

year.

People

^urn COmes,

duction.

Rates

come

to pro-

these

for

decide

may

instead

spending their
discretionary
income.
Inventory
speculation, based on fears of ris-

just decide they
have enough material goods, and
decide to devote their discretionary income to saving rather than
to spending. I just don't know.

are

out

saving

suddenly

may

efficiency in pro¬
duction, rather than directly to
promote increases in total pro¬

demand, even though politicians
may try to push them down and
may even for a brief time succeed.

poses

tion spending.

Tremendous?
going into re¬
it is es¬
about
$5.5 billion

sums

consumers

Edward A. Viner Co.

the sector of individual consump- ing prices, could be the trigger.

capacity.

likewise

continue
should

margins;
tight
money
conceivably could da it if rigorously applied (which seems unlikely), or

mulation, spurred by expectations
of rising prices, may reach dangerous rates and then reverse. Or,
maybe weakness will appear in

thermore, -nowadays the investment per unit for the production
of certain indispensable raw materials—petroleum, iron ore, copper, sulphur—is steadily growing

not, or about thtr'degree of free¬

and

crash

through the windshield. Another
possibility is that inventory accu¬

Outlook for Interest Rates
best

enough

strongly

Thursday, October 25, 1956

#.,

Smith
with

MacDonald

Frank

become

have

Bache

and

Co.,

556

affiliated

Central

BOSTON, Mass. — George
Wright is now with Coffin &
Burr, ^Incorporated, 60 State St.^
members of the Boston Stock Ex¬

change.

was

Vance, Sanders &

formerly

with

Company.

*•# 4INMM

Volume 184

Number 5580

The Commercial and Financial Chronicle

...

Continued

from

attention and personal loans and
instalment credits perhaps should

page

Changing Times for B

be pushed

a bit less. On this score
commercial banks occupy a unique

;
-

position.

be free like

never

tween

steel

N. Y. Banks

competition be¬

producers,

textile

isadvantage

They

have

the

power

and the means to persuade

people

administrative process, since it is
much

easier

adopt curbs

over

larger loans than to apply them
to a
multiplicity of small and
divergent transactions.
If anyone wants further evi-

Of course

last

assured

Today if

currency.

elastic

our

economy

is indeed to operate under a flexible monetary policy, with money
in periodic periods of
tightness, I
believe We should revive the time

V£§Ji
.^^ew York City both to save and to go into debt, dence of the close relationship be- honored technique of rediscountmakers, and other manufacturers, feel
very keenlymat we are being This power not only is a question tween banks and small business ing. Nor is this the only
respect
The laws, all recognize this. They
discriminated against as with the of advertising and of rates. Also all he needs to do is to
consult in which we may have to turn
make

illegal for banks to

interest

demand

pay

deposits

exception of

and

time

most

potential

cities. Perhaps bgnks in New York

means

of importance is
the
personal
counseling which the banker is

banks
higher

our

maintain

than banks in other main

reserves

deposits, thus eliminating the

>banks'

Chicago,

required

are

fix maximum rates of interest for

city

especially sensitive

are

position

give to

the

dividual who maintains
tianship with his bank.

in-

rela-

made

survey

the

Reserve System about

Federal
year ago.

This

survey showed that almost
half of; all business loans made by

member

banks

extended

were

the wheel

closer

practices of

earlier days. Certainly the post¬
tion of

banks with respect

many

to loans and liquidity calls for
foresight and planning of a type

competing. »They limit the size this score becahte
they have not
There has been
a
substantial businesses with assets of $50,000 that we have not had to exercise
and type oT- loans that can-be been
growing ajfYapidly as banks increase in the number of indi-vOr less. Moreover,-another taird-t°r a number of years,
made: and they even make it im—in
certain other3 areas.
You are viduals-who seek such
counseling were made to businesses with asThere is no doubt in my mind
possible to start a new bank exundoubtedly fatftfliar with the ba- in recent years. We see it in our sets, of $50,000" to $250,000—cer- but that our growing economy

aispersai - or national companies
throughout th^country. <U^der-

;and sound conduct of such busi■

ness,

their

conserve

assets, to

prevent hoarding
of money, to
eliminate unsound and destructive

standable

trend

away

poses

-many

these

frorft

causes

them

from

people

Again this is

means. ■

City

sornqt

creditors, shareholders and stockholders."

have

always thought

problem in

•*

to see

ing in the attempt to bring banks
under

the fuir provisions

Hon?

oftheClay tonAct.

know, such
bank

New

York

nancial

itc

ridin*

test

in the

Sec-

fulfills

disrriminatnrv

cerns:

of
,

;

an
do

tion
uou

added strain

bank

all

know

their

merger

from the

sary

soundness of

they

the
tne

and
ana

banks

commercial

and

into

debt

for

home

imporimpor

sav-

nf
oi

need
neea

able

generally

increase.

opportunity
come

for emergencies

savers

c°me

They have

if they will, to

know

tne

money forces on banks the
necessity
to ration their funds

severely and both small and

lame business

hound

arp

avers

fepl

educating them

children

arW
^

number

Une

other

incomes of the American
and

above

all

the postwar

the

cprvipp<?

or for

tho

hankpr-

the services the

^irthe^sk^o/The ^on^rv
authorities

balance

can

perform

bankerto urge

people
in

emergence

contrary, for

modern economy

our

could haruly

sSch ^

maintain

while

avoiding

both

DaianPe'
wnne
avoi<".g« P.
speculative excesses and inflation,
In doing so I would expect the
authorities to make additional reserves available to banks, but not
tidal

wave

touted on
on several of
in the
toucned
oi them
them in
tne

several

of these remarks

course

h?fYf
b®®"
cific needs

*
business.

Lnki
The banks
Th„

pet tion

com-

pvi«stpnrp

the

com-

competitive

push

remains

sunnlv

Future

Loan

th»ir

petitive factors that govern their

different

the treatment of
rurrent

institutions;

mergers; and the

svsfpm

by the exwtence of ^rrent

a plentiful supply of funds. Today

the

™

stimulated in their search flow into

rpservp

re-

system of reserve re
quirements among them Running

in: throughout these and other problems is one recurring theme —

free

iuii iorce, but tne supply oi iree
^
«=
funds is rapidly being depleted.
that tne savings side ot tnis cycle
f
j
e
f

counselor

Policy

f t
8,
the question of adequate growth,
it

assure

never

forget

the'

that

must

ability

of
banks to continue to do their job
depends on their growing along
period when they may have "to with the rest of the country. If
readiust their thinking and their they fail to do so, not only they
practices with regard to business but the general public will suffer
There

lieving

function without it.
all good things,
such [Qans

years of a huge new But
like
middle income group — a group credit can become a source of
that ent^ts much of its savings harm if carried to extremes. It is
to institutions.
Moreover, each up to the banker to seek a proper

expansion and the
°Ur ®conomy
Proyide

many, anonmhes that exist m our

f°r new techniques both by

purposes,

loans, mortgage warenousmg loans

for

ior emergencies, ior

ZSg£ ^loanT
Term loans,

were

?5i

case.

Tight
more

balance-a balance between the

tight

all

not

be-

compete for them effectively. We be allowed to work itself out.
have had a tremendous increase / Nor is there anything wrong
in savings and this is not surpris- with the other side of the cycle—
ing. It reflects the growth in the with instalment credit. Quite the

Yet

simply

are

that

banks

for

reasons
are

be_

entering

as a result. This is a vital consideration which I hope both you
relatively short and the Federal authorities will
time
as
^bey bave over the past bear in mind as you formulate
and the resources of-balance in instalment credit—not jg months. For one
thing, many policies that influence the strucincome group grow only for the good of borrowers, banks now have loans
equal to ture of. the nation's banking sys. but for the sound health of the go% or more of
deposits—a pro- tem.
such

will

ioans

be possjbie

not

for

to grow by as much as

one-third

knew that such mergers, desirable
as
they are, sometimes

year

cannot

larger.
The great expansion o" the mid- economy as a whole. A year ago, portion they will not want to in- ;
„OTllr
G4„Anr
w
die income group confronts banks when - terms were relaxed and crease very rapidly," particularly vvcr-A11
»iuay meeaea
r°t on'v with an oopor+unny but credit outstanding rose with great if
they
have
to
incur
heavy losses
It may well be that the Senate
q1
uritVl
Kill
IPam
CllKn

fbis

help but lessen competition,
view there is only one
real test to apply to bank mergers,
and that is, what is best for«the
In

less
less

One of these relates to

also

denosits
aeposus,

where

serve.

other sides to the

are
are

ings
ings

community

are

which
wmcn

tant.

to
assure
the
safety, and
banks, or their ability to meet the full needs of the

situations

require-

sec-

even dangerous.

ments, there
problem
piuuiem

criterion, if applied
would prove

■

b
nbt °.nly
reserve

«?orh
sucn

any

They provide to busmess.

people.

y°unS

are

substitute mortgage Payments for
rent

rp-

question

has been highly desirable
standpoint of the public
interest^-where it has been neces-

;

con-

Surelv
^ureiy

these

growth of banks is not onlv

a,,

mergers,

harmful and
.

country
country,

effects

altogether.

this

large

Whether we like it or not our
b°""d to
modern society seems geared in- the effects to some extent. Un
creasmgly to a cycle of debt and »itoately, this process of tightsavings. Most of the instalment ™g "P " not amteasy matter, for

furnishings and appliances. Then
ability to as tney grow older, their incomes

But'

be
substantially
DC bUDsidnuaiiy

competition

the
tne

of
oi

inflexible

> to

that

one

namely, whether the effect

lessen

same

merger ini=m
mmht
Iiieiger

a
d

the

that

well

the

escape

money

froup, and a larger proportion of

them

artificial handicap

form

fulfills

short-sighted

seems

...

can

business

serverc^rlen^ThouHplace

Asyou

L'
rf+v,LJ
to
other business

applied
.

people,

younger

Yet I do not want to imply that
small

and mortgage debt is incurred over the last two decades com- enough to create
by families in the middle income mercial banks have broadened new lending.

fi-

frrenf

still

•

can

operations,

rifv«with

institutions

indeed that

would apply
single over-

course

mergers

which

market

open

these
well.-Yet

officials persist-

some

cohesive

functions^

-It has, therefore, been surprising
me

heeds

market

serve

Real Test for Bank Mergers

also

quickly responsive to Federal Re-

nutshell.

ness.

monev

this short statement put the whole

larger

incomes want to know what to do

of with them. And

...

modest

natiorJ?F4fe character. The starting out with a home, want*
? country contini^s to need a major to know how to finance it.
fh?
nfHprlSrc<
m°ney
for
Defends Instalment Credit.
the ^nt^rp^
interests
of
depositors, domesticmark<et'-ce:nter—both
and International busi-

and
and

sign of the

are,jhe changing times. People with

New York

problems,

•%< -*

V* 11

measuring

the

—1

«...

public

th^ *'"e
middle

4-tr

vnpn avi n»

interest

thevrru^t stand readv to

merger,

The response of banks to thh

.4!

meet the

now

.14-

/\/J

appear

4-V»

to be righting

ttr a

them-

in bank mergers

only be one
when it comes time

a.j i

help

but

*11

inflationary.

some

of the matters which I jnen-

can

—

desirability

gentlemen

you

with

the

bank

any

who

familiar

are

conditions

your

own

states certainly should play a key

part in the process.
Now

banking"—the growth oc instilIo<ns for individuals, the

indicated, within the

latory authorities, competition has

some

handicaps

the

institutions.
present

For

level

one

duly high and

reserves

Reserve

<=vstem

cities tod a v

reserves

posits

all

against

18%

without

freeze

d«ade

20%.

significance,

that

against
10%
thA
ine

deposits of

Indeed
rati A
ratio

Without
serve

most

maintain

cash
no

manv

l„nn less
i'oee

even

question,

requirements

other

statutory
in

the

hnnire

economy.

■

our

tent

.re-

are

this

banks

t0
.

—

score,

have

business.

expanding

credit

qdfte

fifteenf^ld

commercial

fared

better

com-

economy

our

take

common

for the

cleaner,

jf^an^es810"
™
' l
,

and observe the

As. I look aboulSand observe the

Needless to say' this is one type
of credit on which there has been
comparatively little tightening up.

dox" In'som" wlys'we °seem?o
have been moving ov"?
pSiod

finance

his

matter of fact, the relation

business.

are

look

found

that

our

the

SfV?imf"n rgreat drde!
banks

that

own

recently

position.

number

now

time,

rising,

AC!

business

of expanding,

Loans to Small Business
To get some facts on loans to

small

reflects

greater

the cifedit

side

man-

of the

some-

c°nlront banks, I cannot help but

...

t of

c"a^ges in loan volume inai now

" wise

some

equip-

drjver

ent through an

banks

and

able

instalment loan.

taxi

in-

was

loans was both possible and de^ a view
s.rab e Ttns is not the case in to recommen.lm|g su.:h chanfes^s
to the late 1956, when we are operating it fmdsto be in the pubbcinter
help small at peak capacity, with a wave of ,est
JMs^would^ be
linewith

restauranteur,

thus

took
We

com-

mercial and instalment loans made

and

have

too,

come

bank

interest
money

hnrrpwinn

was

and

full

cycle.

loans

were

rates
was

hpaw

so
the

^ 5°,'^"und outl^h7bicture
[edenalTo^ound ouii tne pnctu e^
as 1
eve"
^pr2pr
periodic
Perloas 01 merger.
.

Revive

n0r,-^in

Rediscounting Technique

had increased

This hardly represented any pull-

matter cf fact,

Mr. Sproul, former President of
the Federal Reserve Bank of New
Some over.an view of this

yor^
,

wms

when the Federal

ing in of our horns. As a matter Reserve System was established
I believe we are now entering of fact, in many banks it is the the rediscounting for the banks
a
period when some sHft in em- loans to small business which will of commercial paper was conphasis will be called for. Savings feel the pinch of tight money last, sidered its. primarv function, the
nee(j t0 be given relatively greater This follows naturally from the means by which the nation could

wou]d

your

bope

that

es-

your

fhorc!blypreS

owngroup wquld

views to such a commission,

I would also expect the commlsslon 1° start wltb two assumptions

fei?n!im0LfhperraH?pal?v
Jecondlv Sat

j?1®

were

tight

to
small
business
in
amounts
You
will recall that borrowranging from $1,000 to $100,000 ings at the Federal in those days
by 31% in the year Was carried out by means of reagerial attention, and emohasis by from August, 1955 to August, 1956.
discounting commercial paper. As

this,

™

TUTUre

step with

such

to establish some representative national body
rather
slack. In these circumstances, a like a national monetary commisvery
large increase in business sion
to survey all aspects of our
employment,

Petitive1^ than in
business of
attracting savings. To a large ex-

+u-

United

fho
.

process.

further

neglecting small

by banks ip the past decade.

this

clearly

than

States will have to be scaled down

keep

And even more impressive hps
advah^e m the mstal-

crease

countries
than

\
,V

ment lading

reserves

Moreover

beent

banks

countries

local

"J" bank, for ex-

outtbem!
Ub

not

seems

the

one

comolex netwoffe of commercial more heat than light. Banks
relationships she nWr enjoys with- constantiy being accused

o£

de-

There
instaiment

ample, it

pfilnomenal
pnenomenai

ac-

nrinHnai

demand

n °"r

bVffid ta
the volume
^c&n^sinTttroueb each

re-

is un-

^r^ret^uired ?oma?n

rocorx'rof

fair,
tain

serves

pr0Y'th-

thing,

quired of commercial banks

—

business. .In New York, for ex-

Cheokincr Acounfs Dou'-led

se^,icy°ua™having
services are naving

this competitive race, particularly
when compared with other finan-

cial

in carrying out

use

?setodabve\Tt0rromm°/0"Sithanw
today. Yet commercial banks
is

not without

„—„

widespread use of bank cheeks,
credit that is
a,nd °!
S
typeS
Utimes
On
overlooked.
av?l°T
I refer
iot savrngs facilrties.

boundaries set down by the regu-

are

this

—.

the best way to regulate
challenge is to be seen most clearlv a very complex activity, and
'inI h'ke?;to call "popular banks have a major responsibility
n^w

any

altered, and seicondiy, tnat a y
necessary

regulation

and control

of banks be decentralized to the
maximum extent possible. I would
not

hesitate to have any commisno

matter how

constituted,

examine each of these assumptions

for I am certain that
they inevitably would stand as
basic tenets for any banking structure of the future.
Supervisors
and managers have a common
goal—a strong and efficient bank~
ing system to meet the needs of
the people today and tomorrow
and to contribute to the growtn
and prosperity of this great coun*
carefully,

try.

Financial Chronicle.;; Thursday, October 25, 1956

The Commercial and

(1772)

Continued from page

Lsaks

A Banker

Inflation

United States.

enough money to re¬

did not have

place it and were

(4) Inflation

Average Indi-

fSummAH Triicl Plinile

UUIIIIIIUII 11 Hoi rUIIUd

country told me that prior to the
increased
effectiveness
of
the

of course, were

big factors in the increase of Fed¬
eral debt, but the private debt has
risen
tremendously
since
1945.

Brings Capital Gaines

Profits for the

the elimination of the

Cleveland Trust Co. reviews past
decade's

today

the Korean War,

forced to quit. $

fool some of the tion and by

can

serling; from many business leaders who consider inflation as a
credit restraint prpgram they saw permanent form of hand-out by
evidence in their own institutions the
government and %ven from
of
transactions
which
showed bankers who have large losses in
that
people were moving from their bond accounts,
World War II and

States

In the

that you

people some of the time, but not. business cycle; from professional
all of the people all of the time, easy money men like Rep. Wright
Several leading bankers in this Patman of Texas and Leon Key-

into things of one kind or
another because of fear of further
money

depreciation of the dollar.
may

for

funds

trust

mon

relatively

small trust accounts.

Conclusion

battle

The

help inigive the illusion

inflation

While

development

rapid

bank and trust companies com¬

The

will

raging

and

hotter.

The time

continue to grow

Cleveland

the

Bul¬

"Business

October

letin"

Company,,.; reports.; that

Trust
new

The state and local debt has also tially and may
!°,,take a sja?d a?ai.nst *urthar
inflation and hold it is now.
To survey, published in August by
the Federal Reserve Board, gives
speculators or increased tremendously, particu¬ of prosperity even over an extended period of time, inflation continue to inflate to even higher some interesting data on common
gamblers. It does for some who larly in the last few years.
does
not promote full employ- levels may result in a wild boom trust funds. The "Bulletin" goes
tiave been operating on borrowed
(7) Inflation
Helps the .* Little
ment, raise real wages, insure ?nd bust cycle at some time in the on to state that "this type of in¬
*noney, or who have been particu¬
Man.
FALSE.
V/J-'v/
continuing
profits for business, 'uture.
To continue - to inflate stitutional investment has de¬
larly
wises in selecting invest¬
Temporarily maybe yes, but as and capital gains profits for the /nght plunge us; into .something
ments.
veloped, rapidly during the past
V;."
in other countries, in the long run
individual, nor does
inflation fat .worse
than a depression, 10 years. Such funds are operated
Since inflationary periods are
it has hurt the/ little man., Infla¬
make it easier to borrow; or help,- namfly;'"Runaway Inflation " Ecoby
banks and trust companies as
often characterised by severe ups tion' hurts
practically everybody.
people get out of debt, or help nomic laws apply to the United trustees,
with
the,, purpose
of
end downs, like an individual go- ,
The rich in other countries have
the little man, nor does inflation States as well as to other cbun- combining relatively
small trust
ing from a high fever to a cold still been well off, but the middle
chill, and then back to a high classes have been wiped out and help fight communism, nor does tries. We cannot continue to break accounts Jnto one .pool so. as to
it provide a permanent u'ay nf
n wiihout taking the conse- obtain broader-; diversification; of
fever, it is hazardous for the small the poor have suffered acutely.
quences. It can happen here. Eachr
investments. >■
investor to do much borrowing.
V
'
country started out for a mild inThe so
called rich are not the
'Also investings to protect one's
large
holders
of
government The Battle for Sound Principles flation. Each never intended to V
■
Board's New Survey ;
I
principal
against inflations,
is bonds, life insurance, and savings
While individual citizens influ- lose control.
These countries in
."The Reserve Board's new sur¬
liard to do and few are success¬
accounts, and they are not depen¬ enced
by misguided leaders may n}any ca|^s were run by expe- vey
covers v. all
common
trust •
ful, as inflations seldom follow dent on pensions and social secu¬
rienced financiers such as ours,
think their salvation lies in carry¬
funds
for ; general
investment
any set pattern, particularly as to
but they, under the pressure of
rity. It is the little man who is
ing
on the inflation, history shows
which
are';
operated, under the
timing. Many stock and real es-.
largely the loser because inflation us that true happiness and secu-- Politicians who told the people no
Board's t Regulation
F,; and had
late profits that people felt repre-.
economic hangovers were neces-:;
ruins these major assets of his
rity for the individual can only
been
in
force > for
at; least
12
sented
a
capital gain,, and on
sary, - compromised
their prin¬
payable in fixed units of money. come as a result of;
which
they
paid
capital gain The so-called rich on * the other
ciples again and again.
Against iponths on Jan. 31,; 1956. At or
near the
end of 1955 there were
(1) Honest work.
taxes, were not actually much of hand have large holdings of land,
their better judgment they again
198 such funds (managed by 162
a
net capital gain after all, for
(2) Thrift.
and
again increased the money
real estate, and common stocks
banks and trust companies) with
the increase in the selling price
(3) Virtue.
supply
and finally
gave
their
and they are largely the people to
of
over original cost was largely the
nearly $1.9 billion at
Government leaders over a pe- countries what proved to be one assets
whom the insurance companies,

FALSE.

vidual.

'^ft.may

for some

decline in value

reflection of the

have lent their

rectly

inflation may
who
has already borrowed to pay off
in cheaper dollars, but in other
countries as inflations have devel¬
oped, it has become harder and
harder for people to borrow, be¬
cause
lenders began
to realize
what was happening to them as a'
and also long range

make it easier for the person

and

money

time set

indirectly.

tl)e;

same

satisfactory moral tone
the citizens. Infla-

shot of inflation too many. Public
confidence in government credit
and the currency was destroyed,

for the rest of

does

heing paid back in money of far
less value than when they made
the loan and they soon Were care¬

tion

get

high

eeSs have been

Russian Hands. * FALSE.

v.v

the

money and continued
will play directly into

Unsound
inflation

the

tices

debt

for

form

our

the

increase

and

rewards

for thrift

the

But

get back to sound prac¬
better

under

expenses

control, extend the maturity of the

the hands of the Russians and the
sooner we

striving to balance

budget, keep

the

Congress appropriates
and levies the taxes

money

have an

rate,

To illustrate—In 1946 Jones and

|Smith each had $12,000. Jones
bought a 3% bond due in 1956
with his money and Smith built
a house for $12,000.
The house he

tion in

have

country are:

The people have to reach
stage where they feel anything
better than carrying on under
(a)

theo¬
retical house which has been used

conditions

by the Wenslick Realty Company
in
St.
Louis to
keep track of

confidence in their leaders.

building prices. When Jones' bond

have

built

was

matured

with

identical

he received

1956 and

bis $12,000, he wanted to
similar house and much

build\

Wis

(b)

have

lose

lose confidence

in them¬

selves.

Uncontrolled
all

inflation

these

three

last 23

years.

reach

these

people
them

tell

and

roots

grass

risks they are incurring
unnecessarily in having a boom
top of

Mr.

brings
require¬

boom.

Roger

Chairman

Atlas

former

Amory,
the

Rockland

about

the

over

have

the

The leaders of the country

(c)

by their repre¬

the great

they then are.

people

The

sentatives

taken

been

Board

the

National

Bank,

ably stated in his pamphlet "The
A-B-C

Inflation in the

United

commercial banks and savings
banks in the United States today
an(*»
ft only the presidents of
these banks were mobilized in a
against inflation

have

force

14,500.

over

period

year

and

have

re¬

ceived back the equivalent of pur¬

chasing
the

yield

have

in principal that
he would have had to

power

had

period

his

bond

that

over

approximately 1V&%
and the
rate even substantially
higher if income taxes were taken
was

Inflation
Out

Helps

Debt.

People

Get

FALSE.

The

reasoning behind our de¬
valuing the dollar in the 30s was
that

the

would

make

government

to pay

the

and

off their debts.

artificial

easier

for

people

But under

stimulus

the last 22

easj

both

inflation

(9) Inflation Can Be a Permanent
Way of Life. FALSE.

party

(at
least
in
other
countries, has not proved to be a
satisfactory or permanent way of
life.
Sooner or later more and

pleasant to the electorate."

not

Inflation,

people realize what is going

ways

ployees,

nor

immediately

tinue

con-

the

inflationary road
could
mean
ultimate disaster, I
believe they would be willing to
on

"""u

the very nature of their

positions.
my opinion, it is their duty to
carry
the message of inflation
dangers to very organized group
in every community in the nation.

When

we,

people's

custodian# of the
have done this

money,

the

served the

have
the

people.

best

in paper money,
called
of

fact

"real
in

matter
they

countries

and

the

Federal

and

stand

Administration

Reserve

are

en¬

indefinitely.

gone

ever.

years,

the

citizens

into debt deeper than

Lenders

over

the

period

were

get

inflation-conscious

the

bought

the

college

coin"

suggested by one
professor just can't work
as

reasoning

here

the

end

amounted

preferred

the

11.5%; and other
plus cash, 1.6%."

invest¬

Flanders Chairman of

NASODist. Committee
Mass.

Henry

—

14
(Maine,
Massachusetts, New
Hampshire, Rhode Island and Ver¬
mont) of the National Association

of Securities Dealers.

then

that

an
an

honest
honest

reward

for

effort

reward

for

thrift.

build

sound economy

for the

future.

Co., Portland, Maine.
Wellington Wells, Jr., Mixter Sc.

Boston.

Company,

With Federated Plans
(Special to The Financial Chronicle)

»-

/TAMPA,
van

With King

the

has

Co.,

Street,

New York

and

the

Inc.,

265

added

been

members

San

Francisco

ATLANTA,

Fry has
King

Ga.

—

Russell

H-

been added to the staff
Merritt & Co., Inc., 84£

Street, Northeast.

With Hemphill, Noyes
(Special to The Financial Chronicle)

CHICAGO,

111.

—

Wilbur J.

iff
now
affiliated
with
Hemphill, Noyes & Co., 231 South

Perry

La Salle

Stock Exchanges.

Merritt

(Special to The Financial Chronicle)

Walston

Fla.—James H. Sulli¬
Federated Plans,

is now with

Inc.

SAN FRANCISCO, Calif.—Robt.
of

Boston.

Arthur Perry, Jr., F. S. Moseley

Peachtree

Faas

the

Joseph M. Batchelder, Joseph M,
Batchelder Co., Inc.,

Walston & Co. Adds

;

Appointed as members of
Nominating Committee are:
-

Street.

deavoring to stop inflation and the

plentiful and terms easy and
only now are lenders beginning

have

and

near

total;

ments

(Special to The Financial Chroni^e)

the Administration

Now "again

and get into so-

things."

certain

1953

Federal Reserve took

combined. Bonds

stocks,

ft is only then that we can hope

cries against their actions are go¬

government

dual

Montgomery

38.2%

interests of

stability of value that will assure
to the nation and to the indivi¬

stop the inflation.
the

funds

to retreat under public pressure.

the obligations they own payable

necessary

anything and everything
flight from the currency
took on panic proportions. In my
opinion the annual "3% clipping

money over

-the

have

staff

get out of the paper money and

sacrifices

total

range

million.

$25

the

1955,'*
the "Bulletin"states; "common
stocks accounted for nearly half
of the total holdings of all the
"At

and only then, can we feel that we

against further inflation and had

during

influential

group

soon

falling

million

If,

people who command respect by

make

realize that their currency

existence.

added

were

BOSTON,

and

If the people knew that to

addition the Directors and
Flanders, Harriman Ripley & Co.,
Trustees of these banks could also
,be enlisted in this cause we would Inc., Boston, has been appointed
bavG
a force of over 200,000. This Chairman of the Nominating Comwould be a
mittee of District Committee No.

are

pleasant
to
party
leaders,
workers and Federal em¬

number

people generally
is con¬
stantly depreciating in value, they
do the natural thing and endeavor

on.

(6)

stop

government.

into consideration.

ever,

only

1945

three-fourths

about

would

were

1946-50, and 98' more were set
up
in 1951-55. The size of the
separate funds varies all the wajr
from assets of less than $1 million
to more
than $50 million, with

an<* all pressures. We are all
&ware °f the impact that 1,000
Workers can make in a Communlty CVest %Pve or in an el^tion
campaign. There are over 14,500

fight

funds

Sixty-three

chance to make the Americhagrin
found
the
very
same ments. Napoleon came to power
can dollar a stable standard of
house which he could have built following the French inflation late
Administration
now
has
ample value not only for the world but
in 1946 for $12,000
now
would in the 18th Century and in more
It is
cost him better than $18,000.
modern times Hitler and Musso¬ powers to control the supply of also for our own citizens.
money and could check the inflathen that we have a chance to
We figured in* our office that
lini,, Even today the inflation in
tion
and
stop the upward spiral - huild such integrity into the dolin order for Jones to have had a France
has certainly been very
of wages, costs, and prices. How- lar
that 'it will facilitate world
3% return on his money over the injurious to the stability of its
trade and over the years have a
States" published by the Bank in
1947—"No one questions that the

custodians of

we are

build

not

government and for the protection and it reflects the will of the peoUp to now the electorate
escalator clause in new loans, oi\ of individual freedom. Karl Marx pie.
refrained
from
lending
at
all. in his "Das Capital" which is a seems to be obsessed with an
emotional
surge of benevolence, a
There may be some significance pattern for revolution states flatly
that I the way to undermine a de¬ desire to spend freely, and a fear
in the fact that it is currently get¬
of
mocracy is to destroy the value of
any
recession,
all of which
ting more difficult to borrow in
its money. According to Marx the blinds it to^alTc"ause"and"effecrof
this country.
three requirements for a revolu¬ the
inflationary
actions
which
to

ful

As bankers

value.

market
of these

are

Correction Would Play Into

a
r

They disliked

inflation.

result of

honest

character, it the people's money. Let us recognize the fact that since the beginunemployment as has been pre^ destroys It.
Our
Federal
Reserve
System njng of civilization money to be
viously brought out. When infla¬
under the able leadership of Wil- ^rue
tion gets out of control, the little,
money has had to be freely
liam
McChesney Martin, Jr.; is convertible internally and exter¬
man
has often lost both his job
and the value of his savings and endeavoring to return this country
nally into something tangible,
to
sound
practices.
President m0vabie and valuable in itself.
of his insurance.
Eisenhower and Secretary of the
Finally, let us keep up the fight
(8) Inflation Helps Fight Com¬ Treasury, George Humphrey, and
against inflation, against all odds
munism: To Stop It and Have
Under-Secretary Randolph Bur-

early stages this is true

the

dis-

riod of years cannot condone

money

Runaway inflation in other
countries
has
brought on mass

FALSE.

Borrow.

banks

Makes It Easier to

(5) Inflation

savings
di¬

and

banks

commercial

In spending
some
of his so-called profits an
individual was in reality actually
spending part of his principal.
of the paper money.

ing
to

from politicians who want

win

the

fall

elections;

from

labor leaders who want to be able
show

from

annual

wage

economists who

the idea of

increases;

are

thrilled

managed infla-

Rodman Renshaw Branch

Hornblower & Weeks Adds
(Special to The Financial

GARY, Ind. — Rodman & Ren¬
shaw have opened a branch office
in the Gary National Bank Build¬
ing, under the management
Roy B. Murdock. '

Chronicle)

CHICAGO, 111.—John B.
is

now

blower

Salle

connected
&

Weeks,

Street.

Martin

with
Horn134 South La

Volume 184

Number 5580.,. The Commercial and Fiumcial Chronicle

Continued

jrOrri first pdgc

'■

and, once again, types of_ credit, including morl-^
of slackening. Capital spending reverse the trend. Thus far, no gage and installment credit.
*
running at a record annual rate statistical evidence is availableIn the case of-' 'a'- Democratic
••""Of close to $38' billion/ A brand to either prove, prt .disprove this victory in the forthcoming
new survey that has just been contention, As far as steel itselF tions/TtW
>

;

(1773) i 38

thus far does not show any signs accumulation

WWis

JfrnVMltllfi

Koif

IJVUllUtlftlV

ICCIIOC

ftCj UaHCd

®te' b^^letharS

^ v.:

1 All3V
And m AtttlkVfAW
conference
for the
maga- operations after the strike thus far nomic policies will
W m
: «M
:
made
by theBoard
National
Industrial
is concerned, the resumption of anticipation- pf a change in tecoVUajf
auu 1 VlftftVliUVV
zine* "Newsweek" shows that at has not brought about any notice1

prove

again, how long can such inter- vented becahse it could hardly be
expected to be success- called a recession.
ful?
None of these three postwar advention be

mediate factor:
able, easing. Some. observers be-r
AftPr nil
lieve
the
picture may change "
toward the end of the first quarter
+
of 1957.
acceptea r n e

mid-year 1956 the 1,000 largest
industrial companies in the country had unspent and uncommitted
appropriations for capital spend-

im-

+•

P1cra«c leader*
£ever

JLisennower-Buriis

•

these
way
jjrqblems hre justments led to serious trouble, ing of over $10 billion. Moreover,
Meanwhile, a new element may
:
wiU, invturh,. determine Tl>is has been widely interpreted and this, I believe, is the most be entering Into the inventory credit oolicies To L sure the™
key-issues which"we'will have as
Proof' of the economy's; un- interesting feature of this new picture; that is the influence of are so me •^rd moner»!iwSSf'
to face "tomorrow^nd again re- derlymg strength and ability to survey—despite tight money and rising
prices on inventory policy.'
arou^ to wSS5eto?«!5:
ducing this problem Jto. its sim- say up forever. Looking back, it the appearance of a number of
"-/Ll can no loneer be anv
but
plest possible terms, .It 1st how
canthe
is
in
in
thh
much of a problem will inflation *>oom at those particular stages cellations of prior appropriations
nrnf.piN
nf
Hpinff
raised
a
theorv of the npmnrrntc i«
•pose in :«iur Monomic future*.And
first
this vague terjn the
Jiowcan
uThe

tackled
the

elLwlrn^

Smfllion

wefiop^to-eopewitiiat?

^^poe^r' soft spots in the economy,
dou^f thaCt8
Xnw^rd tdi^m^
EffS IMfiamountedtl oSv ^Iam

obvietis

that^investment

unfortunatelv

does not

prove

•

th^

Sirtot^^Tte
.liilSMWffilfSS.&'S':

priceSevel

advisedly, as I dp not feel.com- country out of full employment;
Petent to express the likely rise because of inflationary fears —

Z
not prove
This 1S the plcture of a truly in* percentages, index points or fears which they refuse to share,
g1L ;
future.
,
amazing capital goods' boom. And cany other definite term Of In their, book, the American econ* :
Nevertheless,, there is a ..strong even at this .moment, the steel in- "measurement.
*,
omy
is now operating at high]
of" the longer-range variety, will suspicion that, over the period m dustry is fighting in Washington
Suffice it to sav that the wage- though insufficient levels. They
depend largely on the right question, the boom actually has to get fast depreciation privileges prjce spiral once again is in op- say that while we are doing well,;
a n s w e r s
to the questions just
weakening gradually.
...
for additional new investments eratjon an(j causing considerable we ar® not doing Well enough. /
posed. ..This puts a tremendous
JT
? totaling so^e'
billion.
churning about in the whole price
All that adds up to a philosophy.
policies must-deal with these ^n-

tingencies.

Success or failure of
investment decisions, particularly

responsibility

the

®tart

investment

^
The

.V
has

stock

ways been

market

not

stock

And

yet, it is

probably safe to say that over the
long run, a close correlation ex-

The

boom

unprecedented

con-

description, notably durable congoods, built up first during
the depression and then during
-Jue$erto&-Ot war snortages.
(J) rhe unprecedented demand
for producers goods; new plants,
equipment and inventory, because

al-

reliable indicator of

market.

The

(1)

business
activity.
And business
activity, on the other hand, is net
always...the dominating factor in
the

nas rested on tne lonowmg

three ma3°r torces:

manager,
particularly
when
it
comes to the management of trust

basic

factors

this

behind

the need

for

efficient

There

pro-

fastly

fKCtt<min
°Jdf to.keep up W"h
the progressive cost-squeeze.
There

repeated preof
approaching
overin key industries.
One

capacity

Ai?^°/nWhetKer^e Cl,rrenld^

by 0rie, these predictions proved
to be wr(mg. And yet, despite the
acceleration in economic growth

a^further c<implication.
( A) Sh ?Avpf
£nrr
defense ex
ix;V.p

temporary influences, such
imnart

impact

porary

maladjustment

over

tidht

tight

mnnbv

money,

tern-

time

the

The outcome o/th^el^ctions

yeqr-en'd'

selling.

tne

postwar

of
To

shifts,'

n. The Stock Market

seems

Doom

rieM

V.ers-

the

maoe

tne

there

sure

started

show

weakening,

Signs

one

was
of these

any

the old

°it!n2
lvingL

Even

that

.real

We
b&r—

; a

protracted boom inevitably brings about .industrial
maladjustments, so iv leads to
maladjustments, in "price-earnings
ratios whicb, sooner or later,;call
for correctionsThis factor aldn^
as

peripd

dimension

of. consolidation,

was

the

need

to curb it,
inflationary

the stock market advance in time;

cesses.

Actually,

Once again, luck was with us—
and I hope that, in retrospect, it

the indecision was aggravated by the tight money pol-

icy and the uncertainty
outcome
The

over the

anyone

will prqye to have been good luck

thing the stock market

cope

That would-includerCurrfent, money-^and credit policies,
-This
the

would

once

spotlighttd

whether current

ma-

neat trick for

who can do it.

again

direct

ques'tion

money

and credit

uSkrmTne

•

<»

.-4 '* and
^

•

inflation

-j

boS^"

speculation

,ltel,
have

eliminated

sucressfullv

been

immediate

into ungparted anticipationfcf

and

dangers

that

the

purchasing agents are pronounced downdrag, credit will
price increases.

cOurTe^ ^

■

di(tiren.e

between

the

°n. the
.p^„a®!nf Democrats hnd the -RepubUcans
a8enJs .are af™'n^ a^ PrlIJging actually is one of degree rather"
about, still better .balance- °fju- than basic principle, when it
yautwies and production sched- comes t0 the advisability of Gov-;
an4, a.
.a better balance ernment intervention for the pur^ m. their inventory. TJnless pose 0f cushioning. any decline in'
Jb^re is an early _pickup m mdus- economic^^ activity.
trial production this shoiild bring
Therefore it can be stated cafe-'
.

about

some

reductions

J^rroi^lrSSSS

ventories of- purchased, materials

38 3 ^

in course.

similar final rush of capital goods

and Processed goods soon.

spending usually has marked the
cycle because it brought

Should further i n c r e a s e s in
inventories of finished goods de-

existence of temporary over-

ve^op—wh'ch are strictly the re-

„

changes.

pvtrn

onmp

3,
scarce

witofv f

with almost anything,

•

really

SffiK
rnoTmafCply
matefial® m normal supply

safe

I cannot discover any evidence economy is actually developing a:

Just when it became apparent
that we had gone about as far
as we safely could in the stimu- the
stage
of
temporary
overonce it knows what it has to cope
lation of the consurqer goods in- capacity more quickly than others
with.
Thus far, the market still dustries through the use of credit, and
stay there for longer periods.
is betting on a continuation of a the producers' goods boom bioshigh level of prosperity. In that, somed out in renewed strength.
V. Inventory Trends
~~
it is probably right. But, if we are This became apparent in the inThis brings us to the second
reading the stock market's "mind crease in plant and equipment ex- type of business spending: incorrectly, it has one mental reser- penditures throughout the current ventory operations. This type of
vation in banking on continued year.
business spending involves smaller
prosperity. It is betting with itself
But what is frequently over- amounts than investment spendthat, such a high level of prosper- looked in the present; situation .is ing, but is far more vulnerable to
ity will be^ maintained either 4* this: it took the current aecelera- changes
in direction- from acthe«result of; sound e;c«u^om ie tion
in
plant.. and
equipment cumulation
to
liquidation - arid
^trends,;or a.s the result «f not-sc- spending plus the continued build- back again.
•
; ■ sdund Government^ intervention. ; up iri inventories, to barely riiainThe postwar ups and downs of
; *lri this,\theiie is«fthc furthar: astain the .level''of industrial pro- the economy have been primarily
suniptioh that ^uch^mtervention diiction throughout the year, at due to such changes in inventory
'-can<arid -ivitt,
bnjisucdesEdui.
V least until now.
;
trends. The swing from inventory
^
All this still does not add up to accumulation to liquidation both
can

reaHv

uncharted

trouble

would be

political trends

^oWem
t

•

will be the

of inflation

•

Inflation may come sooner or

suit of miscalculations .in sales
develop slowly or a
prospects—this would make any httle taster, it may come in one
additional materials purchases for form or another,
inventory even less popular— - But it is utterly unrealistic to
seems
to me that as far as the even in the face of price increases assume that we can avoid it or.
development of investment port- of the type currently in sight,
indefinitely control it — unless
folios is concerned, the selection
Thus the current boom can there is a general uprising against
Df "growth" stocks is rapidly behardly look to continued inven- further deterioration in the pur-;
coming more complicated, as some tory accumulation for support chasing power of the dollar—reindustries obviously will reach Inventories are more likely to de- gardless of how it is being caused.

dislikes most of all is uncertainty,

r&ipk*

into

spelled

victory, it

capacity into plain view.
>,
Regardless of how near this
point currently is irom the standpoint of the over-all economy, it

ex-

and not the other kind.

of the elections.

one

Federal

rushine head-lone

the

order to prevent

af ye? that

peak of

the super-boom of .1955 and

finally

would have been sufficient to stall

unHmited

^ usually

the

terials—which

goods

embarked on an all-out
-attempt to overcome this ternporary saturation by an unparalelled use-of credit. The result
economy

there

anyway.

quantities

s been its selectivity.

or
because

attpmnt

new

yet^battening down goods production then ^showed The latest acceleration in the rate ■
the hatches for a'protracted busi- signs of catching up with the war- Gf
capital spending came in the
ness decline.
It does not yet look induced
consumer
goods short- face 0f a noticeable levelling off
like a bear market, although for ages. Including automobiles and jn retail
sales, when allowances
•oyer a year.now.it has acted..like•' residentml honsmg.
• ■
■
are made for retail price changes,
a
rather tired bull-market.
Its
Instead of accepting this grace- and a drop jn residential building,
outstanding feature for the past fully as a temporary slowdown or A pattern Jike this, in the past,
Just

printing any
monetizing any debt

pohcf^

market is not

y ?r

not

inflationary or not, the point in
can
the
auesti0n here is simply whethet to the point of throwing the econor not the current wave of price omy into^a tailspin. The answer:
increases may cause a continued to that question is categorically
build-up in inventories of pur- No-if for no other reason thai
chased materials and goods in that no Government would sit idly
process, beyond the ever-present by and see the~boom destroyed,

; 0ne phase of the current capital
boom frankly bothers me.

consumer

In the case of a Republican eleetion

bet that current economic policies
will be continued without major

conUnued^^Thd^irtually
,

fi§ht against such a label, can only:
be described as iriflationary,
!

current

term inflation in this country.

why there is no contradiction be-

cor-

strength—but

y*e

are

dlmensl0n.

were

and

the

This, however, is
strictly semantics. In my opinion
it-ignores the common use of the

has limitations, however. That is

rections within each of the three
factors

that the stock

Vjoyp broken through

underestimating^ the

rnot until 1953-54 that
r

from

made

maladjustments

^sectors

boom

nostwar

forces

less than three weeks .away;
and/or the approach of
now

tax loss

thp

mistake

prige-

obviously no longer apply.

fmm

who

to time, predicted the end

that

stead-

Government

deficit

The djfficulty js that we haven't
any idea in which leaSue we are
now batting. The old yardsticks

^> a*ny 5?sic nlnHif!!rPc
?whether
i?im lr^♦
economic trend; or P Those economists,
n„ftnnmictc
it reflects one or seversl

who

with inflation because the Federal

and

war

assure

money

J?0I™al expansion was interrupted widely predicted for the sixties,
lb^ S^ mrketand ttooresslon^w^r mentations Tnd
^xt few y^s may witness
This
hrinc
th^cVnr>v
finaliv the
The Korean War
development of temporary
i^r^v^iATvi
market rtnally the
The-Korean^War over-capacity,.
problem right down to the ques- brought
r^orir

those

are

price Increases have-nothing-to. do..

have been

dictions

of expansion which, although they

structure.

obvious; shortages and

are

velop into a moderate
industrial activity.
„

„

drag

VI. Ihe Next rnase

Sooner or later we shall have to

deal with this problem.

economic

the

key

It is truly
issue of

tomorrow.

In summing up, it appears that

it is easy enough to pinpoint the
TiiIIIa AnnAllltrA
economic key issue of today—but llOlUOII IIIIII8 ftllltUlllllrtr
that it is quite a different matter
.mi
■
J'to come up with an answer to
R6W ISSU6
the key question of how long the
AKrmW r«lif
Pm-doii
postwar boom is going to last.
Swr nf thP iradiw*
Unless the. momentum of the iu^w7
*
n0«prs
&
capitals goods^ boom is. jipset. —
^^nSnmi^
and i\ is doubtful whether the. Co., wad to wife Els >
dated
outcome of the elections could da a
^
mh
• it .regardless -of -who wins—nothing.'. ucrooer o, .iwoo —
.*
points .to an imminent,-violent end Tuttle, 5 pounds and 13% -ounces
of the boom. On the other handj of b*Wn eyed beauty. The Tuttles
the evidence on hand leads to the
have one son. Timothy, age
in 1948-49 and 1953-54 was at an conclusion that the boom is gradu- annual rate of about $10 billion, ally weakening and that it would 1U*
It accounted for nearly all of the probably require a shock treatGross National Product in 1949 ment to. throw it into high gear
p# S« Moseley Adds
and for three-quarters of the total once again.
(soeciai to the financial chronicle)
decline in 1953-1954.
The most likely shock treatment
Frederick M
Since January of 1955 total in- would be another shot of inflation,
BUSI ON, Mass. — r reaericK xa,
ventories have increased $9 bil- either in the form of another turn Bundy, Jr. has been added to the
lion. The steel strike slowed the in the wage-price spiral; a returri staff of F. S. Moseley & Co., 50
increase, but did not reverse it. to deficit, financing via a tax cut; congress street members of the
It had been widely predicted that or the switch from tight to easy
'nnstnn Stock Exthe steel settlement would termi- money, with open or implied en- -New *ork ana a
nate the latest period of inventory couragement bf greater qse of all changes..
_

—

■

The postwar

imminent trouble of serious char-

Can f'economic forces" by themr

selves safeguard the continuation
of the current.high-level of business activity?- #
Since the end of the war, there
have been three interruptions in
the upward trend: the two inven-

tory

recessions

1948-49

and

1953-54 and the flattening out in
industrial production this year for
which
the
amusing new term:

"straight-line", recession

was

but

acter;

does

demonstrate

that, for the time being at least,
one

of the three major legs of the

postwar boom has been weakened,
-

iy- Capital Goods Spending
That
more

puts the spotlight

all

the

the prospect for business

spending; in the form of plant and
equipment expenditures as well
as inventory buying.
inThe
capital investment boom,

The

(1774)

Continued from page

needed

in giving members

Woild Economy Stronger, bat
Inflation Most Be Watched

balance

reluctant to reim-

changes in the stockpiling of stra¬
tegic materials are, of course, un¬ pose them.
The ultimate elimination of all
settling to commodity markets.
and
discriminations
Similarly, the disposal of surplus restrictions
commodities by one country may involves the establishment of con¬
disturb the normal markets of vertibility, particularly of the cur¬
other countries.
rencies of the great trading coun¬
Fluctuations
i n
international tries. The convertibility of sterling,
markets for raw materials would one of the two principal reserve
subside to some extent if interna¬ currencies, is clearly of stra¬
tional tensions were reduced. In tegic importance. Although their
remain inconvertible,
any case, much can be done to currencies
alleviate the effects of fluctuations the United Kingdom I and most of
the
countries
in Western Europe
in the exchange receipts of raw
materials

have made them transferable over

Without entering

exporting countries
into commodity
stabilization
agreements*
This

wide

area.

extensidtT-of

This

going on
would involve the accumulation of and it has resulted in a steady ap¬
gold and foreign exchange re¬ proach toward the equivalence of
serves

transferability

still

during periods of high ex¬ these currencies and dollars.

port earnings, to be drawn upon
when prices are low and the ex¬
As

consequence

transferability, some
tices

associated

inconvert¬

eral with drawings,

provided the ibility are being moderated. Bi¬
member is following good policies, lateralism has been substantially
and thus will be able to repay the
Fund and rebuild

reduced

during the past year or
two. As progress in this direction
continues, the patterns of multi¬

its reserves as

commodity markets improve. This
not

the whole

solution to the

lateral trade that evolve will

problems arising from fluctuation
in" raw materials markets, but the
Fund could be of material assis¬
tance'in minimizing the adverse
effects of a sudden fall in foreign

exchange receipts. The tendency
in some countries to import cer¬
tain'

commodities

reserve

against crop failures or shortages
should also prove to be a step in
the direction of greater stability.
The real threat to the payments

tion five years ago.
The problem of convertibility is

position of most countries at pres¬
ent does not arise, however, from
economic

fluctuations

abroad.

approximate
those
that
would prevail under convertible
currencies. Progress has also been
made toward reducing the dollar
import discriminations, which are
a practical consequence of incon¬
vertibility. In some countries, dol¬
lar discrimination is now negli¬
gible or non-existent. What re¬
mains today is relatively small in
comparison with such discrimina¬

nearly

not

merely

a legal
most
is

matters

arises rather from tendencies to¬

earning

ward a persistent price and cost
inflation which originate in ex¬

any

able to

use

problem. What
that

countries

currency should be
their receipts to buy

imports from any country and to
make payments in any currency.
The practical problem is to find

cessive public and private expend¬
iture for consumption and invest¬

ment, and in an increase in money,, the
incomes that exceeds the increase
in productivity.
This threat to

means

to move

gradually from

the transitional arrangements un¬
der inconvertibility to full-scale

monetary stability is not necessar¬
convertibility without risking the
ily confined to countries with pay¬
progress already made in strength¬
ments difficulties, f The world isening the pattern of world pay¬
confronted with

a challenging
ments.
to reconcile develop¬
employment with
The Task of the Monetary Fund
monetary stability in a political
The Fund is prepared to help its
environment which is still uncer¬
members to deal with the pay¬
tain. The solution of this problem
ments problems that will arise in
calls for statesmanship of a high
an expanding world
economy. Al¬
order in all aspects of economic
though temporary setbacks may
and financial policy.
be unavoidable from time to time,
There is one field in which cur¬
rent practice^ has not always been progress in relaxing restrictions
and discriminations should be ac¬
sufficiently adjusted to changes in
celerated as exports become large
economic conditions.
The Fund

problem

ment

and

deficits

restrictions may be nec¬
at a time of world-wide
payments difficulties. Once these
essary

difficulties

have

contemplated
secure

tained under the provisions of the
transitional period. In these con¬
Fund

has

policy in dealing with
underlying payments
problems,
or

impypye.

siderable

serves

fact, there has been
relaxation

Fund

financial

importance of the relaxation
of exchange restrictions as
the
payments positions of its members

that

met, it is
members will

not be regarded as a substitute for

stressed

the

Relaxation of Exchange
Restrictions

been

approval for
the
temporary retention or imposition
of such specific restrictions as are
or
may
become necessary.
Re¬
strictions and discriminations can¬

the

relatively

change

Since 1952, the Fund
accordingly been holding an¬
nual^ consultations on the exphange restrictions
still
main-

sultations

become

small. The Fund Agreement recog¬
nizes that the general use of ex¬

retention*

normal

the

limit;

Fund

model

The

resources

that

the

than

bers

its

members.

number

our

substitute

dealing with

ments

for

use

re¬

and credits from the Fund

temporary

pay-

difficulties.

mu¬

exchange

restrictions in recent years. Even

members have shown

they regard drawings
as equivalent to^he
own

reserves—to

on
use

that

the Fund
of their

drawn

November

for

measures

which

taken

few

with

therefore,

which,

the

Fund

could not give adequate consider¬
ation.

completion the past week

Maintained

The objectives of the Fund will
be achieved only if its members

payments position. Even large re¬
serves
and
generous
assistance-

that

does

not

country

effectivelv

act

price and cost inflation.
hand, a country that
sound policies will find

prevent

tinue

On the other
pursues

over

the

use

of its

assistance

own

from

reserves

a™d

Fund.

The

the

greatest

contribution

bers

make to their

can

that
own

mem¬

well-

being is to direct their financial
and monetary policies to internal
stability and external balance.
With

this

bring to

Annual

"close

five

service in the Fund.
a

Meeting,
years

I
of

It has been

our

members

Board
express

Governors.

men on

want

the
to

appreciation for the

on
•

■

;)•

last year's sum of $58,177,460, but a loss of 16.2%

;

$114^52J57 for August.

five-week

the

;

]
'

;

'.
,

which will produce 114,500,000 net tons of in¬

;
»

•
-

how

cold-

'■

wanted will depend to a large extent
of "the automobile industry. Demand for structural

strong that bridge builders can't promise deliveries on
larger^.p^ojects until 1958. Public utilities, unable to

;

much

the needs

steel is

cold-rolled

carbon

sheet .and

many

sOme of the

get all the steel needed this year, are inquiring
first half

1957,^They have stepped up their wants, concludes
journair 1

The* American

for steel lor the ;

this trade

Iron

and

Steel

Institute announced

thai

the

operating rate of steel companies having 96.1% of the steeimaking.

101.1%
of capacity for the^iveek beginning Oct. 22, 1956, equivalent to
2,489,000 of ingot and steel for castings as compared with 101.4%

capacity for the entire industry will be at an average of

•
-

capacity, and J!u495,000
The

is based

tons (revised) a week ago.
industry^ Ingot production rate for the weeks in 1956
annual capacity of 128,363,090 tons as of Jan. 1, 1956.

duction 2,502,000 tons.
was

month ago the rate was 101.6%

and pro¬

A year ago the actual weekly production

placed at 2,413,000 tons

100%.

The operating rate is not
The

comparable becausftxapacity is higher than capacity in 1955.
■;

For the like week

distinguished

finished carbon bar% will be

stimulating experience to work

and the

y
;

strong.

How

that it can deal with the pavments

difficulties] that arise, relying

operating rate of 37%.
In 1957, the publication said, demand for all forms of steel
probably will not be equal*. It's certain that more structural
shapes, plates and seamless tubing will be wanted than can be
produced. Pressure for hot-rolled carbon sheet probably will con-

from the Fund and others cannot,
iii the end, prevent balance of

payments difficulties in

gots this year, has operated above 95% of capacity in all except ,
the eight strike-affdcted weeks of 1956. On the basis of an antic¬
ipated Jan. 1, 1957 capacity of 132,000,000 tons, the industry •
could turn out 114,500,000 tons of ingots at a yearly average ;■

balanced

increase

The industry,

prepared to pursue financial
policies that are consistent with
are

maintenance

•

was

no| he as high next year as this year, even though as much steel
may be turned out. Next year's capacity will be larger than this
year's, and the absence of a strike period will eliminate the
need to race the rest of the year to make up for lost time.

Balance of Payments Must Be

the

and

Mghr level and totalled $96,679,7t2,

days,

without sufficient information and
to

■'

over-

ture, it added. In a few cases, companies have been forced to
dip into their surplus and dividends will be reduced accordingly.
The five-week strike spoiled the record pace of steel companies, y
but their earnings will be high compared with those in any year .
except 1955. *
&
*
:
With order books guaranteeing capacity operations for the re- ;
mainder of this quarter, the metalworking authority said that .
steel mills see pretty clearly that their high production will carry
through the first quarter of next, year. The second quarter looks .
promising, too; it added.
It cautioned that steel ingot production rates probably will \

rea¬

decision had

within

assis¬

confronted

use

Detroit-area auto plants
December to bring fourth-

many

steel strike, 1956 will go into the
as the most profitable year ever for the metal working industry, "Steel" magazine declared on Monday last. Metalworking
sales volume, it predicted, will easily set a record at $138,000,000,000.
;: .
The national metalworking weekly said that a study of third
quarter reports proves that business has outridden the much
publicized late summer "slump" forecasted earlier this year.
It said q sampling of these reports shows predictions of net
earnings for the yqar as high as 100% over that of 1955. Most
reports are less optimistic, sticking closer to a 5 to 10% increase.
Rising costs are^taking some of the glow off the profit pic¬

and helpful solution to
problems.
The Fund has

been

books

sonable

sometimes

;

101.1% of Capacity

Fund, both tech¬
If they were
to approach, the Fund confidenti¬
ally and in good time, it would

their

lines.

this

Despite

the

rolled off the

1
"

Steel Production Scheduled to Drop This Week to

nical and financial.

}■!-

below the

have

Members, in turn, will need and

often be easier to work out

cars

output-schedules in line with forecasts.

car

of 66.2%

bilize their economies and to put

with the officials of
Our
con¬

prospect

increasing

1957

Saturday operations in

continued

into effect the fair exchange prac¬
tices for which thq Fund stands.

from

drop from the ACTgUst figures of $615,258,760 was 14.5%.
Building plam recorded in New York City during September

probably continue
for advice and as¬
sistance on a whole range of prob¬
lems. It is the hope of the Fund
that more determined efforts will
be made by its members to sta¬

tance

October

come, and will
to come, to us

will be able to obtain

Building permit volume in September dipped below the high
Augtist level,Tbut remained well above that of September a year
ago, Dun & fjradstreet, Inc., states.
Permits issued in 217 cities,
including New York, last month were valued at $526,503,213 as
compared with $477,025,801 last year, for a gain of 10.4%. The

mem¬

members

all

tual confidence between the Fund
and

the 1,030,000th
"year* with this week expected to yield the in-,
dustry s 4,5GO,OOQth car and 900,000th truck of 1956.
;"
"Ward's" said an estimated 276,000 of the 1957 model passenger
cars
had been completed thus far.
Chevrolet, alone last week
operated at a 24^veek'High of'32,000 assemblies. >
'October tru^k -Pt°ductiori, "Ward's"' added, is running on
schedule, jvith 9^QQ0 completions estimated for the entire month.

they have been in the

steady strengthening of the

pace

Scheduled for

now

believe that there has been

quarter

past.
I

1957

week's

and

Ford

of the Fund will be

available to its

reserves

jumped to 38-per-minute

Accordingly, the statistical agency said, extensive
time

use of their
confident that

Cadillac

and

planned for

increasing extent and
thus will become an
important addition to

they

even

'h".,

increase found all producers scheduling gains,
continuing lack of volume operations at some plants
expected to hold jhe,.industry's October volume near the 400,000-,
unit level.
Some" 511,000 car completions had originally been

has

can

„

plants increased by 30.3% a week ago to 91,410
70,175 in the previous period as first of the Buick, Pontiac,

but with

with the

reserves.

used to

the Fund

from

States

Oldsmoblie

much better the manner in>which

integrated

passenger ;-cara was

United
from

importance to members. The Fund

assistance

output in

The

its members understand

automotive; industry, last- week output of the

the

manufdctureres were in simultaneous operation for the trst time.
"Ward's Automotive Reports" said passenger car

quota limitations are not to be
regarded as something so excep- *
tional as to be of little practical
and

this limitation in each of

cases.

comparatively
frequent use of the waiver has '
shown that drawings in excess of
these

full

has

;

25% of quota originally mentioned
in the Articles of Agreement as
waived

page

^)955.

been for amounts in excess of the

the

from

than in September
Marked Increases from 1955 occurred"? 1
in the South Atlantic* West South Central and Mountain regions.

—

and

.Agreement
provides
that
five
years after the Fund begins opera¬
tions and in each year thereafter
any member still retaining restric¬
tions under the provisions of the
transitional period must consult
With the Fund as to their further

Continued

given the need and justification,
drawings on subsequent tranches
will be permitted. During the past three years,
eight exchange transactions and
four
standby
agreements
have

the

of wider
of the prac¬

with

payments difficulties.
know,
practically Complete freedom to
draw the equivalent of their gold
subscription to the Fund, what
we call the gold tranche. - As has
been said in the Annual Reports
for 1955 and 1956, bur attitude is
liberal toward drawings in the
first credit tranche, that is, ,for
.Fund holdings of a currency of
nOQ% to 125% of the quota: Mem¬
bers should have no doubt that,

own

Reduced

Bilaterialism

port proceeds of a country are
falling. In such situations it is
reasonable for the Fund to be lib¬

Our members have, as you

legislation authorizing
upon exports of a few sensitive
ravfr materials, sharp fluctuations exchange controls has not been
iii world markets for their prod¬ modified to any great extent, the
ucts may impede their efforts to actual restrictiveness of the con¬
Eeeure orderly development of the trols has been reduced by more
economy and a rise in the stand¬ liberal licensing policies. In some
countries, exchange controls are
ard of living.
The position of these countries, now more or less nominal, re¬
may also be affected by sudden tained for possible need in the fu
changes in the policies of coun¬ ture. The experience nearly every¬
tries that import or export raw where has been that, once restric¬
materials on a large scale. Sudden tions are relaxed, the exchange
are

greater assur¬

from the Fund to meet temporary

where the

authorities

of my with my best wishes, for all whoon the Executive Board
will guide it in the years to come.'
colleagues onthe staff. I I have faith int the efficacy of inwelcome my succes&^fmy fellow 'jtefrnational monetary. cooperation
countryman and friend, Dr, Per and in the successful collaboration
Jacobsson, and I leave the Fund of the Fund and its members.

and my

that they can count on help

ance

1956

associates

Prog¬

has been made in recent years

ress

Octobe? 25,

Thursday,

...

loyal and devoted efforts

be ^replenished

and

when the need has passed.

Commercial and Financial Chronicle

*;r

J'T-I

1".'

Volume 184

Number 5580.

The Commercial and Financial Chronicle

(1775)
percentage figures for 1955 are based
828,310 tons as of Jan. 1, 1955.

Electric Output Turns

annual capacity

of 125,-

Some

Slightly Higher in Latest Week

new

Car

'*v

Loadings in Week Ended Oct.
Above the

13th

Rose

,;\
'

Loadings

for

the

1956 increased 8,203 cars or 1% above
the
Association of American Railroads
reports,

Oct.

13,

week

and

increase

corresponding week in 1954.

101*871

cars,

ket,

14.1%

above

Coffee

\ \

The
lows
J

;

for the latest week ended Oct.
19,"1956, according
to "Ward's Automotive
Reports,"- climbed 30.3% above that of the
preceding week as 1957 passenger cars rolled off the

total

and

cars

trucks

amounted

Last week's

Last
•

the

reported

agency

United

States.

previous week and 26,396

This

trucks.
.and

663

; *

„

21,790

trucks

with

21,028

■

•

season.

United States

gondola

and

cotton

the crop

cotton acreage

purchases

week totalled 539,700
•week and 267,100 in

sale

Oct.

totalled

publicly offered at 100%
crued interest
000

is reflected to

Decline

■

of last year and the:229 in

week ago

excess

$100,000, rising from 21" last week.
industry and trade groups except manufacturing reported >"
during the week. The retailing toll declined to
and
134, commercial service to 14 from 21, while* milder

All

fewer
119

failures

decreases

occurred

construction,
casualties

climbed

construction

down
had

wholesaling, down to 26 from 29 and in
41 from 44.
In contrast, manufacturing

to
to

from

last

week.

some

last week's

and

purchases. Loan entries in the week ended
201,900 bales against 174,200 the previous week.

capital.

ported

the

23 from

Middle

27.

The

Atlantic

week's only

Region

increases

where

the

toll

were
rose

Mountain

and

States

showed

while the Pacific States had

ago,

marked "increases
a

total

dollar

from

general food price level,

price index, compiled

measured

modest recovery from the six-month low struck'
index

rose

$6.01

compared with S6.C8
of

Oct.

16, from $5.97

the

week ago.

or a

retail

for

increases

aircraft

John T. Wallace
Joins First California
SAN

California

the

buying

television

sets, radios and

lamps

There

was

substantial rise

the

call

business

Canadian

toys

moderate decline in the buying of canned

retail

stocks

poultry and dairy products

their

the

past

for

Christmas

exceeded

those

for

orders

limited.

were

promotions,

fashion

women's

retailers

accessories,

extensively
dong both
1

The

some

last

cost

week

total

moderately exceeded that of

flour, wheat, rye,

were

volume

wholesale

trade

oats, barley, hams, bellies, lard, butter and cottonseed oil.

ago.

year

Department store sales

on a

country-wide basis

retail

Canada,
institu-

and

taken from

Chicago

CHICAGO, 111.—The Bond Club
Chicago will hold a luncheon,

meeting
the

Nov.

12:15

p.m.

Red

Palmer

Lower

Eu¬

To Hear al Luncheon

and

apparel, textile and houseware

dollar

throughout
a

Bond Club of

wholesale

the

tional business.

in¬

gifts

Force

a high level,
moderately reduced.

was

sales

Air

theatre. During his follow¬
ing investment career, he traveled

week.

Wholesale inventories in

drop

noticeably

While interest in fresh meat continued at

preparation

creased

and

entering the investment
Canada, Wallace wasr
officer with the Royal

ropean

for

goods.
week

First

flying

and distributors.

Prior to

rose,

office

Company, 300 Mont¬
Street, security under¬

gomery

linens, curtains,
china and glassware.
Although furniture sales were unchanged
the past week, retailers reported slight gains in dinette sets and

last

Francisco

San

writers

somewhat, volume in refrigerators, freezers and automatic laundry
equipment decreased moderately.
♦

lines

FRANCISCO, Calif.—John

Wallace, for 10 years associated
with the largest investment secuV
rities firm in Canada, has joined

men's

the

assemblies.

and

volume

The

major aircraft manufacturers;

overhaul, modification, re¬
conditioning
and
repairing >■ of
military, commercial and personal

the

period ended
1 to 5% higher than a year ago,

occurred

engaged primarily in

also

sales

1.2%.

Higher

substantially satisfy

sub-assemblies of military aircraft

trade

last year.

earlier and it

1955,

Temco

purchases of women's better
and dresses.
Interest in fashion accessories advanced
appreciably, with principal gains in millinery, handbags and
jewelry, while volume in lingerie declined slightly. Although

goods

wholesale

Inc., staged

week

the corresponding date in

should

coats

case

noticeable decline..

by Dun & Bradstreet,

somewhat.

volume

Grocers reported

The

in working capital pro¬
by the sale of the deben¬

cloth

While

Wholesale Food Price Index Turns
Moderately Higher
food

It is anticipated that the

the manufacture of assemblies and

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 +7 to-fll; South +2
to +6; Middle West — 3 to
+1; Northwest -j-1 to +5; Southwest
—4 to 0 and Pacific Coast 0 to
+4%.
Apparel stores reported the most noticeable gains in girls'
clothing with best-sellers among skirts, blouses and sweaters.

con¬

siderably to 95 from 73 and in the Mountain States, up to 8 from
South Central toll remained unchanged at 17. Mixed '
trends from 1955 prevailed. Five areas had heavier casualties than
last year and four had lower.
The middle Atlantic, West South
year

slackened

cars

re¬

4. The west

Central

company's needs for working
capital at this time.
'y. ?

apparel continued at the level of the preceding
week, the buying of topcoats and suits rose substantially.
Consumer purchases of home furnishings were close to both
those of the previous week and a year ago.

regions, including the Pacific States, down to 53 from 66, the East
North Central States, off to 29 from 33 and the South Atlantic
States, down to

new

Considerable

Manufacturing and

failures than a year ago, while the toll
wholesalers remained even with 1955.
The
toll among service enterprises fell below last
year's level.
A slight decline occurred in six of the nine
.major geographic

retailers

among

in
The

occurring last year.
$5,000, dipped to 38 from 40 in the previous week, but exceeded
the 33 in the similar week of 1955.
Thirty businesses failed with
liabilities in

are

the

company.

several years with the consequent
increase in inventories of mate¬

Although the call for used automobiles continued to rise, vol¬
ume

but continued to exceed the 206 of this
Small casualties 'With liabilities under

size

proceeds

deben¬
MJ

the

1954, it was
^ i y
involving liabilities of $5,000 decreased slightly to

from 219

«,

increase

below the prewar level of 277 in 1939.

216

rials and work in process has cre¬
ated a need for additional working

wefeTcf according to Dun
Bradstreet, Inc. Although the toll remained well above the 239,
the comparable week

ac¬

working capital of
According to the
prospectus, the expansion of the
company's sales
over
the
past
the

tures

Mild

subordinated

net

added

in the 14 spot markets last
bales against 402,400 bales in the preceding
the corresponding week a year ago. The
2

Temco

convertible

The

and

issue of $5,000,Aircraft Corp. 5*4%
an

tures due 1971.

year.

Oct.

;

A. C. Allyn & Co. Inc. and
Keith Reed & Co. Inc., on Oct. 24

movement neared its peak.

cost

A group of underwriters headed

cotton

352,100 bales by the CCC

extent

largely based on the large early season move¬
ment into the loan, the belief that a
tight supply of "free" cotton
might develop later and the possibility that the soil bank
may
much

estimated

cars,

Aircraft Debentures

larger purchases by the

was

Reported

Bankers Offer Temco

a substantial volume of
export business. Hog
slightly, while steers moved irregularly higher.
continued in a narrow price range;
Trading in

subject to*

$1,056,644.

continued weak with prices touching new
Bearish
sentiment
reflected low-priced

season.

are

six Diesel electric road switching
locomotives and five drop", end

the

Like Period of 1955

Failures

mar¬

Responding to extensive Columbus Day sales promotions,
shoppers increased their buying last week. Interest centered pri¬
marily on women and girls' apparel, while sales of household
furnishings were sustained at a high level.

demand

certificates

Commerce Commission.
The issue is to.be secured

the Past Week

coffee

green

broader

expected

the

the authorization of the Interstate

Commercial and industrial failures
dipped to 254 in the week
ended Oct. 18 from 259 in the
preceding
in

vided

Failures Registered

'-y-.y

the

Support

retire

with

until

the

routine

balances

Trade Volume Higher for Week and 1 to 5% Above

Business

were

•

were

market

cocoa

for

Raw

was

trucks.

and

upon

by American housewives during the third
up 2.2%^ over the same period a year ago,

spot markets increased

the

1,541

and

1, 1971, inclusive.
certificates are priced to
yield from 4% to 4.50%, accord¬
ing to maturity. Issuance and sale

•

heavier consuming

values declined

placed at 6,275 cars and 1,828
previous - week Dominion plants built 4,242 cars
trucks and for the comparable 1955 week
4,712 cars

dull

draw

to Nov.

The

oils and forecasts of

year ago.

Canadian output last week

there

compared

1957

Marketing Board than a year ago. Raw sugar prices were
Offerings were limited and available supplies appeared
tightening up.
Trading in lard was fairly active with
prices somewhat firmer, influenced by a better tone in vegetable
to

car

week

made

equipment trust certificates
maturing semi-annually May 1,

firmer.

output ro^e above that of the previous week
cby 21,235 cars, while truck output advanced by 762 vehicles
during the week. In the corresponding week last year 137,425 cars
^and 26,396 trucks were assembled.
"
(
;;

4%%

British
•"

113,200
units, or an increase of 21,997 units ahead of the preceding week's
-output, states "Ward's."
^
f.

Brazilian sales to the

assembly line.
Last week the industry assembled an estimated
91,410 cars,
compared with 70,175 (revised), in the previous week. The
past
production

Central of Ga. Gtfs.
Halsey, Stuart & Co. Inc. is
offering today (Oct. 25), $840,000
Central of Georgia Ry. series C

according to the Pan American Coffee Bureau.

U. S. Passenger Car Output the Past Week
Advanced 30.3% With Turnout of 1957 Assemblies

week's

Halsey, Stuart Offers

Export demand for flour, aside
buying for relief programs, also was

extent

some

1956

improvement noted in the

purchases

quarter of

Sep-

develop.

•

continued

content

States

some

approaching

•;

-Car output

based

the

;•
was

market

jobbers

United

some

There

and

Loadings for the week ended Oct. 13, 1956, totaled 823,207
.cars, an increase of 1,629 cars or 0.2% above the
corresponding
•1955

flour

incentives

quiet.

preceding week, the
r

domestic

new

from

ended

farmers

crop

bakers

some

week

that

Wheat through

1955.

most

Preceding Period-

freight

revenue

reports

marketings tended to relieve congestion in old
crop supplies.
The slightly higher Government estimate of this
year's crop also caused some selling in corn. Trading in
grain and
soybean futures on the Chicago Board of Trade was less active
a week ago.
Daily average sales totalled 34,500,000 bushels against
39,500,000 the previous week and 46,500,000 in the like period
The

based

was

163,000,000 bushels

Corn prices worked
sharply lower for the second consecutive
week

1954.

wheat

last year.

distributed by the electric light
ended Saturday, Oct. 20, 1956,
.was estimated at
11,333,000,000 kwh., an increase above the week
-ended Oct. 13, 1956,
according to the Edison Electric Institute.
,
*
This week's output rose 33,000:000 kwh. above that of the
pre¬
vious week; it increased 689,000,000 kwh. or
6.5% above the com: parable
1955 week and 2,300,000,000 kwh.
jDver the like week in
,

tember 15, as compared with
124,000,000 bushels at the same date

The amount of electric
energy
power industry for the week

.and

support

had taken out loans

Lacquer Room of the
House,
John
A.
Barr,

Chief Executive Officer of Mont¬

•

were

The

of 31
tion

beef,

corn,

index

raw

cocoa, eggs

represents

foodstuffs

is to show

the

the general

and hogs.
total

sum

and meats in

the

general

the

use

price

per

1956,

pound

the

and its chief func¬

-4%

Wholesale Commodity Price Index
,

^
1

The

course

general

last

compiled
This
the

commodity price level

week.

Dun

compared

The

with

extended

its

daily wholesale commodity

Bradstreet,
294.69

corresponding date last

Inc., fell

week

earlier

and

with

276.00

those

for

17.
on

year.

the

week

ended

week,

Oct.

1956,

Oct.

the like period

last

year.

was

increase

For the four weeks ended Oct. 13, 1956,

was

For the period

recorded.

warm

warnings.

index,

Oct.

above

index

13,
In

was

Jan.

1956

re¬

increase of

to Oct.

13,

1956,

and

greater
sales

consequence,

City the past week suffered
extent

declined

by reported storm
3

5% below the

1956, increased 10%

Cruttenden
invite

outside

$3.75 per

Co.

guests at

City for the weekly period ended Oct. 13,
In

may

charge

person.

2 With Investors

Planning

(Special to The Financial Chronicle)
—

Doucette and Antonio

above those of the like period last year.

Stephens,

Members

BOSTON, Mass.

of 1955, trade observers report.

According to the Federal Reserve Board's index, department
store sales in New York

Today." Reservations should

be made with Donald B.

registered above that of 1955.

weather

similar period
,

gomery Ward & Co., Incorporated,
will speak on "Montgomery Ward
& Co.

from

Board's

Retail sales volume in New York

downward

price

293.71

increased 5%

gain of 4%

Past Week

Registered Further Moderate Declines

Reserve

preceding

ported.

trend of food prices at the wholesale

level.

Federal

become

affiliated

Joseph P.

Zeoli

with

have

Investors

Planning Corporation of New Eng¬
land

Inc., 68 Devonshire Street.

Grain

prices

were

irregular

and

moved

within

relatively

the

preceding week

Oct.

1956,

increase

10%

■

marrow

limits

mained easy.

west,

but

during the past week.
Some moisture

much

rain

will

drought in the Winter wheat belt.

The undertone in wheat

re¬

received in parts of the South¬

was

needed

to
*

really

break

the

was

recorded.

crease

of 11%

For
was

the

four

weeks

registered.

13, 1956 the index recorded

responding period in 1955.

ending Oct.

13,

(revised)

1956,

in¬

For the period Jan. 1, 1956 to Oct.
rise of 5%

above that of the

cor¬

With E. E. Mathews
f

Sn«c'«il to The Financial Chronicle)

BOSTON, Mass.—Harold Chap¬
is now with Edward E. Math-

man

c4c»4/\

c iroot

The Commercial and Financial Chronicle...

(1776)

Continued from page

(2) Mala,

(1> the cash price,

ing:

postponed for
three weeksand (3) Proxima,de-

denoting

payment

Iroting^j^onement of settlement
and

for six weeks.
calculated

are

rate lip

Functioning of the rampant in¬
flationary
environment as
the
motive for the public's
in

shown

ways.

Great

interest

market

number

interchangeability

into

Peru

privately.

***"

also,

!i-l.

bined

«...

freedom

with

,•«

Sst

viou

inctonooc

m0nv

Itearit

Her

000 to 150,000 shares, and practi-

nVS.

hut

trend

u„

momWch!n

$»-w?»tv»h,p o{J-

turns
m

inflation

which the

following

—

credit

guarantees

con-

the market has been thawed
out. This, in the amount of $30
t° $49 million worth of issues,
was bought and^ placed in a national fund by the Peron regime
to support the economy and keep
U|w
X ue
collateral.
-

the

oyer

dividend

i£"fi"be appointed

tothe Bolsa,

his functions of broker and dealer
are segregated; legally, he cannot
deaier

als0

act

ruip

;s sometimes

(although this
In the

evaded)

*—"

the

institution

are

ment.
street

locus

descriptions of

the

resembling

our own

other

Atrial,

(2) *The condition of stocks U1
of
commercial and public
w
utility. Several large steel fabri. new cars and used cars will be
whom I talked good when the 1957 models come

eating companies to
have stated that

inSistry

the

cen-

notably
Carl
M.
Loeb,
& Co.,
Merrill Lvnch.
and
White, Weld;
as
well
as
through Chilean
brokers.
Blue
Chip as well as the speculative

The

1957.

ernment wants to

are

t-,

f f

n r

Potenha° oppos?tion

tr3Ct6u,

the

reduced

cnppniatinn

has

higher than 1956.

been

ex-

By the

sources

concentrated'

With

lTlOst

thG

DENVER, Colo/—Roy J. Bayless,

e Ex.c

The

,nges*
mutual tund

wealthy individuals. The big in-terest
jcet

acttom

galvanized
through

lAe..n/oll..aG

into

New:

hrnl/arc

effective

York

ent

open-end basis.

there1

are

three1*

pres-

banks

/inuiiUn

With Merrill Lynch

closed-end

trusts, and one open-end initiated
by the Rockefeller interests* The

the American stock
marf.

arrived ,in

(Special to The Financial Chronicle)

production and
-

...

%,and£d of^efformanre fn

Appliances

the

The 1957 forecast for appliances steel industry is the ingot rate—
based upon the estimated man- that is, the tonnage of ingots prounit

sales

including

erators,

electric

water

turers indicate

each

these

small increase in

Between
the three large manufacturers of
such
appliances
whom
I
conproducts.

duced compared to the industry's

produce ingots,
The most conservative forecast I
have seen is 85%; the most .optw
mistic, 96% for the year 1957. It
is my opinion that an ingot rate
of 90% of capacity, give or take
1 or 2%, will be the operating
rated capacity to

close.
be interesting to you to

that

one

man

who

out-

in this. industry attrib¬
strong sales of such appliances not only to the large
housing starts but also to the in¬
troduction of appliances in vari¬
ous colors and to the fact that in
home
architecture
the
modern
the

room,

can see
pride is
ance

longer
a
hidden
which &11 visitois
and .as a result,
more
no

but

one

now

Edward N.

about

means

Siegler Adds

(Special to The Financial Chronicle)

taken in the appear¬

CLEVELAND, Ohio

—

Gerald

Davis has become connected with

Edward

Commerce

Siegler & Co., Union
Building, members of
,

„

the Midwest Stock Exchange.

With Suburban Sees.
(Special to The Financial Chronicle)

CLEVELAND, Ohio

— Alphonse
Sajevic is now affiliated with
^90
Suburban Securities Co., 732 East

200th Street.

of kitchens.

will be a slight increase
shipments of steel products to
this industry in 1957 which will
represent a total consumption of
There

With Mutual Distributors

million

2.3

This

120 million

very

standing

utes

1957.

ingot tons. In
other words, the steel business in
1957 should be excellent.
119

tacted, there was. some slight difference of opinion as to individual
appliances but on the whole their
were

for

rate

tons.1

(Special to The Financial Chronicle)

KANSAS CITY,- Mo.-n-'Lermiel R.
__

gcott ik

utors,

nowTwith

Inc.,

1016

Mutual Distrib-

Baltimore

Ave*

Conclusion

DENVER, Colo. — Donald E.
Langley ; has. become connected

latter operates, along -the eooperatiVe lines of the Swiss trusts, to with Merrill
,

increase

kitchen

(Specip.1 to The Financial Chronicle)

...

The
,

sumption for heavy construction
conclusion
could increase in 1957 if additional
What do the activities of all
steel is available.
~
these steel consuming

It may

form' Prompted by avoidance of Bosworth, Sullivan & Co.
income and withholding taxes,
Lackner Adds to Staff
n^cst of the activity takes place

end and

the

...

"know

(Special to Thb Financial Chronicle)

Elite

American stock market, but from

that

are

With FIF Management

technique has
DENVER, Colo.—Jo D. Whiting
Brazil, as stimulated
has become affiliated with Lack¬
.by American interests. With portner
& Company, First National
In
Peru,
similarly, there is folios Of local securities, they are
great speculative - interest in the sold to Brazilians on. both a closed- Bank Building.
Peru—Speculation

estimated

estimates

beqlings taking place off the Ex- Jr- has joined the staff of FIF
Ganges. With the prevalence of Management Corporation, 950
?tock certificates issued in bearer Broadway. He was formerly with

over the
customary double "commission charged on transactions in
individual New York stocks.

capital to flee from
Europe's political troubles. With
the country's
lack of industrial

change brokers is counterbalanced
by the resulting appeasement of
the Chilean's prevalent annoyance

because

highway program alone could in- sales of automobiles willrnean increase the use of steel
creased sales,of steel to the tndus,P,S .!n
L,1,
steel
d
try during 1957.
>

Sr ^|®. in^er®st is cen- securjties.

tJ?e coffe®ty °* [Sa?J?ul° and -i11
?
Exchanges are quite
^ctive, witi only 25 to 30 issues

devalua-

of construction in
reach $15 billion or

should

...

exporters:invento,y-

The sales, of^trucks over
expected to remain high
of <; increases, in ,Vgeneral
business activity. /

about 10%

diversification,
activity
on
the
Montevideo
Stock
Exchange
is

growing moderately, the public's
appetite being increasingly
whetted by the recent years' bull
market
experience • of equities'
against

declined

a
,

(5)

Curb Ex-

are
•e

expenditures

because

Brafl1 rePresent3 another coun- comparatively narrow, with tradJry where, on a lower speculative |ng in ab0ut 20 stock issues. And
'
?na inflation is corre- Uruguyans are currently buying
| f1?
, with
intprpct
stock
exch^
only limited amounts of American

Sales of American mutual funds

SDDrPrifitinn

lncome-penalizing tax factors.

protection

withdraw.

Brazil

bought, interest in the
low-yielding ^.w«&xiUi5-uavA
ploughing-back capiti gains situations being stimulated by the domestic inflation and
:
uvu.«vaWuaviv«iaiiu

total

government,
which has
guaranteed dividends with a floor
£
or.
u-t.4.1.
of 3%; and from which the Gov-

pressure

Public Construction; Federal ex- modelaetre "expected; to be higher,
penditures for highways and edu- this is- not considered too serious
cational facilities should increase a, deterrent; to; ^ales.%.

freezers, electric ranges,
heaters, automatic
was^ers> electric dryers, dishwashers,
garbage disposals and
room
air
conditioners,
in
the
stated forecasts of large manufac-

/-.

(4) .,While:; the? prices of lifew

export. Such appliances as refrig-

•

sales stimulant.

buses

Uruguay

styling; should

rHl!tanr

c,w

fundSfor

W-

(3 V New

the large
i

construction deliveries.

ufacturers

Hhoades

out"

members of

+«

1957

firms,

some

especially

for these types

change in the old days following
its beginnings under the Buttonwood tree, get 90-95% of the total
volume of business via clusters of

(1) There should be no serious
strikes; in 1957. ,: - -

legendary

the howlnlIn Uruguay' one of the tradi"
{ * ? 5
stocks has tional domiciles for refugee curbeen
triec*, under the supervision rencv. the investment activity has
of
the

well as in commodities as
sugar and wheat, is handled diTectly
by New
Yox'k
member

good
Hon

and-

forecast

expected in .each major type—in-

The

hand,

tion

StCcldv

cars

curate within 4% either way,-and
months
could

gfflioS*

on new

Other Private Construction: All

absence of admission fees, ex-

here—the selection of issues

ones, are extended 12 to 16 months

Government, through the informal negotiation. Dealings are
central bank, exercises super- in futures, with no margin calls,
capital gains tax, also con- vision,^ including
inspection of and subject to ..direct delivery."
tributes to the popularity of the brokers
books.
,
The trading in both locations is all
stock dividend, as well as to the
Great eagerness is displayed for speculative and, stems from the
lower-yielding equity share.
American stocks, with some buy- desire lor hedging for the protec.

issues

main at 1,150,000, the same as
that now forecast for 1956. However, I wish to repeat what I said
earlier to the effect that dny forecast for six months should be ac-

tonnage of 1956.

rule is. someunies evaaea;. m me

tion,

include

•

therefore, be about equal to the

dends combined with the absence
of

men

sales

Se
°i
not the 1957 models only.

partly hy the Govern-

predilection
payable in
stock, manifested both in the dividend policy on Chilean issues and
in the choice of New York stocks,
following the public's eschewing
cash; income. The existence of a
15% withholding tax on cash divithe

fun(4

Exchange
O

penses

^Aiso reflecting the influence of frozen segment of stocks hanging
the

by
admission

antee

«nLWii anX,imnorl5nt 5,orne
Partly by toe , ClAanng
House and

toward

automotive

production and

housing starts are expected to be
1,100,000 units. This is the same
the State. There is figure as 1956. Steel consumed in
fee; only a guar- such residential building should,

accompaniment

12%; and the few corporate bonds caUy no over-the-counter business,
outstanding yield from 15 to 20%. thls being froiynpd on as black
Common
stocks, on the other market doings.
The business is
lion/i

the

It consists of
who
are

...

talk¬

The yeW.^1957^|ihaeed be

secuuty^trading activities center a member must be a registered
JZrT nhanve wSHIllv
ume^of llo" bfoker via- an association '• Of
/imnJ nnn£isnmn«h»^«nrarti brokers; and, after he is elected,

return ofalmos

1957,

various

members,

nomjnated

from

Chile, a mortgage bond guaranteed speculative-minded country.
by.the gOTernment with a 6% cou-

51 an

American issues
paying stock dividends are favored, in the light of the absence
'—1—'*—
"
0f a capital gains tax there, com-

Nitrate with dollar value, afford-

&v?eatuCre senflt
=nn,y=i ritf,r„

between three-story bulldmgs- ton3.....

sales outlook
discussions with

noiaing lax.

vmliin

a]/\1 lrt

the 1957 models. Since I

ing about the steel
for

hard currency, like Anglo Lautaro
WT ai-nrki-Ak

steel

shipping pails, gas cylinders, cooperage, boxes and strapping should
ais0 increase proportionately in
1957. These containers will use
between 2 and 2Vz million net

years

hiffh

interest is directed toward stocks
with

such

have been spent in tooling up for

containers
barrels and drums,
of

types

th^e has been ana ^-maii ^ snops ^ e ^ ^ a good yew .forcthe- container busbe, «,500,000 units for thefro^ BritishtoUB-'Securities small legislative house, is owned iness- '
rnnctriirtlAr,
domestic market and 250,000 more
y«hr nYnsltv ensiled 51% by the government, under %
Construction
for export. Truck and bus produC?hrn,^h
tL
RHtich
th
whose aegis it is conducted, and
Residential Construction: In 1957 tion and sales are estimated to rethrough the high British w th

to 70%.

leading
stock

other

The

speculationin^ap?^ privaie kouses^d

latter

money

the actual unit of trading. The
bustle of activity in these parts
is divided between the Bolsa, or
formal exchange building, and the
street is a narrow thoroughfare

for beverages and 22% non-food,

*naelihCamixorP

Mala

call

Steel Sales Ontlook for 1957

Market

adjacent to the miles of this colorful city's docks for the export of

low dividend yield is the necessity
to overcome the penalty of the
30% withholding tax thereon. The
tax penalty on Canadian issues is
only 15%, a differential which has
encouraged Peruvians' as well as

there are three

prices simultaneously rul-

Coffee

The

great interest fn Brazil is
the coffee trading done in Santos
Of

Activities in South America
sets of

amount to

Speculative and Investment
speculative tempo

Continued from page

Dividends customarily
2% quarterly on asset
value, with a year-end extra.
earnings.

Thursday, October 25, 1956

The Automotive Industry

Lynch/
Pierce;' FenJ_
...

The industry about

....

Edward D. Jones Adds

Which there
-

(Special to the FinanciAl- Chronicle>

ST, ^LOUIS.. M0.
*

•

•—

bdvvuiiwll

generously including Blue, Chips est and capitaL
gains
lr} wsregard of .the much higher
On the opeh-ends, there- is a
yields obtainable locally; Yields 10%
load, with provisions for re-

'Mttypically high; the purchase of outstanding shares at
7°
lssue> selling asset value; .and management col-

^at 99, .10%

and .Obras Publicas

(Public

Works),
selling at 60.

coupon

lects

7%% fee.

Fund

investing policy manifests
Chip * philosophy-, with conlocal, common stocks ranges from. centration
om
stocks
showing
3 to 17%, with many issues ruling
comparatively "low"
yields - of
issue

less

than

The return

9%.

Encouraging

Peruvian's

se-

•lection of American stocks with a

instead

the ,25%

obtain-

able elsewhere. Outstanding stocks
sell at from three to

seven

times

easy
so

(Special, to The Financial Chronicle)

DENVER, Colo.—Jolui Evans
been

Securities,

added

the

staff

Inc.,. Farmers'

^u^d^ng

understand, why

this

manufacturing/.good

(Special to The Financial Chronicle)

with-

isF Edward IX Jbnes & Co.,. 30(1 North
Fourth Street, - rtiemberS of
the

upon -many

badft New

panies which are suppliers of all
kinds.. This industry is the largest
consumer

York-

conWExchanges.

and

Two With

of steel. In the year of,
,

With Perry T. Blaine

George

ieqause.the impact, of autorno-r

bile

"J is very great

Union

Blue

15%

Witli Securities; Incs

has

—

Morgan r is-. nowassociated

llltoUUlC

Midwest

Stock.

Slay ton Co*

(Special to The Financial Chronicle)

1955, the last year -for. which, full
ST. LOUIS, Mo.—Robert E. Jenfigures are available, 23.1% of all
finished*' steel products
were nings and* Mrs.- Gladys I. Lauscher

ASHTABULA^ Ohio —-Bernard, shipped.directly and indirectly-to
C. Olson is now with Perry T. this group.
Blaine & Co., 4519 Main Avenue.
Hundreds of millions of dollars

have been added to the staff of
Slayton & Company, , Inc., 408
Olive Street..

Number 5580

Volume 184

..The Commercial and Financial Chronicle

(1777)

The following statistical tabulations

I ndications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

AND

STEEL

INSTITUTE:

Equivalent- to—

0bt.

condensate

and

ASSOCIATION

each)
to stills—-daily average
output (bbls.)
;____
Kerosene output (bbls.)__,
:

2,502,000

2,413,000

Oct. 12

6,989,950

_Oct. 12

117,498,000

Oct. 12

26,405,000

7,021,650
.

7,048,500

8,078,000

7,357,000

27,524,000

_Oct. 12

2,323,000

2,096,000

2,232,000

Oct. 12

12,402,000

10,897,000

7,692,000

13,268,000
7,718,000

12,663,000

Oct. 12

7,750,000

.7,639,000

Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Oct. 12
Kerosene (bbls.) at__
_
;
_Oct. 12

174,062,000
33,564,000

176,000,000

175,767,000

150,480,000

33,243,000

37,228,000

Oct. 12

153,199,000

151,805,000

33,712,000
146,105,000

148,849,000

Oct. 12

47,349,000

47,299,000

48,276,000

47,288,000

output

(bbls.)

___•

Distillate fuel oil, (bbls,) at——
Residual fuel oil (bbls.)-at—i.—

units

installed

Total

construction

new

Private
"

Revenue

CIVIL

NEWS-RECORD:
Total U.

Additions
.

and

alterations

COAL

OUTPUT

Pennsylvania

$390,230,000

$380,704,000

$419,915,000

265,393,000

'211,356,000

238,466,000

257,600,000

181,228,000

178,874,000

142,238,000

162,315,000

Oct. 18

157,790,000

151,207,000

109,943,000

106,261,000

-Oct. 18

23,438,000

27,667,000

32,295,000

56,054,000

Office

10,410,000

10,650,000

anthracite

Oct. 13

686,000

640,000

655,000

STORE

(tons)

(COMMERCIAL

AND

134

Oct. 13

—

DUN

786

714

273

213

289

294

303

-126

building..

and

___!

institutional-.

recreational

123

102

163

171

201

222

219

198

.22

construction...

Other
other

telegraph

construction

;

529,000

Nonresidential

161

159

481

433

352

321

1.427

1,417

1,269

383

390

374

229

235

221

________

building

355

public utility
private

Residential building

148

...

"31
■

480

Telephone and
All

...

.27

•

...

Public utility

Railroad

;___

...........

127

Educational

128

130

...

•

Hospital and institutional

Oct. 20

11,333,000

Oct 1H

254

11,300,000

11,482,000

259

262

nonresidential

Military facilities
Highway

10,644,000

;

___

j.-,

...

Hospital and

Other

INDUSTRIAL)

784
;_____

Educational -l__,i_____!!_

INC

BRADSTREET,

100

—

119

9,808,000
•

1,410

140

Industrial

INDEX—FEDERAL RESERVE

SALES

1,240

140

buildings and warehouses'—.!!
restaurants, garages.'
_i.

Stores,

Public

10,230,000

1,235

building (nonfarm)._

2 87g.

1,561

41 "

$4,148
-

2,862

Farm

$446,621,000

Oct. 18

Oct. 13

'EDISON ELECTRIC INSTITUTE:
Electric output -(in 000 kwb.)i_-.FAILURES

675,737

(U. S. BUREAU OF MINES):
and lignite (tons)-,

SYSTEM—1947-49 AVERAGE

'*V

821,578

657,711

Oct. 18

coal

DEPARTMENT

820,666

683,329

Oct. 18
;

Bituminous

815,004

—

$4,279
'

1,422

_____

1,416

2-4,

Miscellaneous

State and municipal
Federal

823,207

675,622

120

$4,267
2,840

Industrial

construction

Age

Commercial

Social

construction

Public

Year

Month

___

Nonhousekeeping

ENGINEERING

—

construction

Private

CONSTRUCTION

127

___^_v

DEPT.

(in millions):

Religious

freight loaded (number of cars)
Oct. 13
freight-received from connections (no. of cars)—Oct. 13

ENGINEERING

building
(nonfarm).
dwelling units

New

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

service

construction

Residential

Other nonresidential
■"

•

RAILROADS—

CONSTRUCTION—U.

Nonresidential

August:

Locomotive

6,713,700

7,697,000
26,687,000

25,565,000
2,059,000

Residual fuel oil output (bbls.)

AMERICAN

LABOR—Month of September

Gasoline

Distillate fuel oil

BUILDING

(bbls. of

(bbls.)

runs

"2,495,000

of that date:

are as

Month

100.0

output—dally average

gallons

Crude

§2,489,000

of quotations,

cases

Ago

.101.6

or,

either for the

are

Latest

Month

AMERICAN PETROLEUM INSTITUTE:

oil

Oct. 28

Ago

'101.4

that date,

production and other figures for the

cover

Dates shown in first column

Tear

Bteel dngots and ^castings <*net tons)

Crude

§101.1

Montb

Week

month ended

Week

Indicated steel operations (percent oi capacity).

month available.

Sewer

239

and

Public

______

building__.___.___

148

....

water

136

143

615

600

533/ia.

123

127

100

1__

service

enterprises...^

--51
'

IRON AGE COMPOSITE PRICES:
Finished

steel

(per lb.)

Oct. 16

Pig iron (per gross ton)—
Scrap steel (per gross ton)
METAL PRICES

(E.

Conservation

Oct. 16

___

--Oct/16

5.622c

5,622c

$63.04

$56.17

•

5.622c

$63.04

$59.09

$58.83.

$44.83

BUSINESS

and

•>

public..,

65"

STATES—DUN

INC.—Month

(NEW)

Straits
Lead

.Oct. 17

York)

(New

York) at_

(St. Louis)

Lead

Zinc

tin

(New

at_

Louis)

(East St.

COMMERCIAL

at.

39.600C

39.700c

39.550c

43.075c

.Oct. 17

35.400c

36.450c

38.000c

43.725c

.Oct. 17

106.875c

104.500c

106.750c

96.000(

-Oct. 17

16.000c

15.500c

.Oct. 17

15.800c

15.300c

.Oct. 17

13.500c

13.000c

ERAL

9,583

Government Bonds

Aaa

91.86

91.97

95.83

98.73

99.04

99.68

107.62

Railroad

Group
___
Utilities Group—

Oct. 23

102.46

103.13

102.96

Oct. 23

100.81

Group

CROP

111.25

100.98

101.64

109.6C

Oct. 23

98.73

98.88

100.00

107.44

Oct. 23

93.52

93.67

94.56

102.63

Oct. 23

97.47

98.25

98.41

Oct. 23

98.88

99.68

.107,98

Oct. 23

100.00

100.98

108.88

•

•>.

•

BOARD

corporate

Average

3.21

Oct. 23

3.83

—Oct.
Aa
_ __ Oct.
A
-Oct.
Baa __—————————————————.—————Oct.
Railroad Group
—Oct.
Public Utilities Group
Oct.
Industrials Group
— Oct.
Aaa

Oct. 23

COMMODITY INDEX-

MOODY'S

ASSOCIATION:

NATIONAL PAPERBOARD

zr1'

Orders received (tons)
Production

(tons)

Percentage

not

T——ucl-

at end of period

Unfilled orders (tons)

OIL, PAINT AND DRUG REPORTER PRICE
=

i-?

J™"

activity

AVERAGE

23
23
23
23
23
23
23

3.16

3.14

3.81

3.60

3.56

3.57

All

DEALERS

EXCHANGE

sales

Odd-lot

Number

—

.3,30

Barley

*3.10

Rye

Flaxseed

3.83

3.82

3.75

3.31

Rice

4.17

4.16

4.10

3.59

Sorghum

3.85

3.39

Cotton

3.77

3.28

Hay,

all

3.09

3.23

Hay,

wild

415.5

418.0

425.1s

Hay,

alfalfa

Hay,

clover and

Hay,

lespedeza

257,075

376,835

264,153

272,234

Beans,

279,692

280,809

280,651

291,411

Peas, dry field

401.4

109.15

109.18

108.75

106.82

SECURITIES

EXCHANGE

(customers'

Odd-lot purchases by dealers

1,059,985

2,480,280

__Sept. 29

$68,975,372

$72,812,006

$57,827,403

$136,907,987

(customers' sales)—

.Sept. 29

885,230

918,082

765,287

1,673,878

Customers'

short

sales

.Sept. 29

7,554

6,282

8,175

11,216

Customers'

other sales

.Sept. 29

877,676

911,800

757,112

1,662,662

.Sept. 29

$45,351,808

$47,355,344

$38,411,756

$93,758,556

orders—Customers' total sales-

Dollar value

sales by

Round-lot

dealers—
shares—Total sales

Number

Sept. 29

—Sept. 29

sales

Other

total Round-lot
exchange and

account

for

Total

Sept. 29

round-lot

385,050

193,110

385,050

589,080

604,320

456,190

1,171,480

Total sales

transactions

account

for

418,940

364,600

10,768,540

8,051,730

21,984,950

11,187,480

8,416,330

22,685,880

mem¬

purchases

Short sales

sales

Other

Total sales

Short sales

sales

Other

Total sales

transactions initiated off the floor—
Total purchases
:

1,340,320

1,386,190

1,083,120

3,603,300

Sept. 29
Sept. 29

223,860

237,430

178,430

334,600

1,129,520

1,227,810

940,480

3,281,180

Sept. 29

1,353,380

1,465,240

1,118,910

,3,615,780

Sept. 29
Sept. 29

277,300

311,300

173,120

466,580

20,600

26,300

20,000

51,000

Sept. 29
Sept. 29

333,070

318,640

161,990

534,480

353,670

344,940

181,990

585,480

.Sept. 29

514,136

611,563

333,661

974,578

sales

Total round-lot transactions for account of
Total

sales

Other

sales

Other

sales

Total sales

.Sept. 29

54,140

64,720

67,960

107,330

.Sept. 29

530,072

531,835

456,847

1,183,944

.Sept. 29

584,212

—Sept. 29
—Sept. 29
.Sept. 29

2,131,756

596,555

524,807

2,309,053

1,589,901

1,291,274

members—

purchases

Short

LABOR

Sept. 29

PRICES, NEW SERIES

—

(1947-49

DEPT.

5,044,458

298,600

328,450

266,390

492,930

1,992,662

2,078,285

1,559,317

4,999,604

2,406,735

2,291t2G2

5,492,534

1,825,707

commodities

Farm

foods

Meats

All commodities other
•Revised
as

of Jan.

figure,

than farm

iilneludes

barrels

930,000

1956, as against Jan.

Morithly Investment Plait

and foods.

1,
<■

—

foreign

14,721

112,782

8,789

(100-lb. bags)..

1—__

(bushels)..

beans

9,097
24,174

21,316

4,670

4,687

4,708

16,290

16,968

4,885

470,064.

1,491,350

_——

2,525

461,928

371,106

1,445,460

1,564,530

6,022

—

...

for

and

sugar

9,383

9,389

11,058

33,481

156,258

148,383

242,167

233,676

227,046

16,277

16,257

20,946

2,067,029
6,286

2,029,023

2,195,788

6,396

7.251

13,191

13,031

12,228

36,961

37,680

36,874

94,938

93,433

106,234

(tons)______

seed

—

(bushels)

crop

(tons)

68.285

67,760

51,827

31,311

29,622

3,006

2,999

3,237

171

263

192

281

—

925

957

1,026

159,800

161,375

146,860

144

•142

142

145

•142

142

4.04

3.83

5.93

5.65

4.91

4.79

4.61

4.50

4.17

4.24

4.06

3.34

3.20

2.67

4.25

4.02

3.93

£$5,622,000

£41,756,000

2,755

2,559

2,881

$61,432,984
20,222,629

$95,073,194

$92,546,202

21,886,519

17.574.262

81,655,613

116,959,713

110,120,464

Income

3,591,599

4,674,411

3,539,803

charges

78,064,014

112,285,302

106,580,661

47,601,173

81,373,510

75,848,827

(barrels)—
—

SYSTEM—1947-49=100—Month

Sept.:

—

____

WEIGHTED AVERAGE
YIELD OF
COMMON STOCKS—Month of Sept.;

Industrials

(125)

Oct. 16

115.1

115.0

115.1

111.2

Oct. 16

88.4

•88.1

90.2

87.1

Oct..16

103.4

103.3

104.0

99.8

Oct. 16

84.6

84.8

88.5

79.4

Oct. 16

123.0

122.0

II8.0

crude runs.
fBased on new annual capacity of 128,363,000 tons
tNumber of orders not reported since introduction of

•

—

(25)

'■

incl. Amer. Tel.

(not

Utilities

(24)—

& Tel.)

(15)
(10)

>■—

ESTATE

REAL

GREAT

£17,399,000

FORECLOSURES—

AND

SAVINGS

FEDERAL

ANCE

3.76

—

BRITAINMIDLAND BANK LTD.—Month of Sept—
ISSUES

CAPITAL

•

—

(199)

Average

INSUR¬

LOAN

CORPORATION—Month

June

ITEMS OF U. S. CLASS I
RYS. (Interstate Commerce Commission)—
INCOME

SELECTED

Month of July:
Net

railway

Other

operating

Other

Net

income

Total

—

income

deductions
for

available
after

fixed

deductions

from
fixed

charges—r

—j.

income

Depreciation (way & structure & equipment)
Federal
Dividend

On
Ratio

taxes

income

stock

preferred
01

4,172,564

4,259,936

4,188,281

43,341,237

77,185,229

71.676.263

46,011,359

45,907,872

44,538,897

10,021,155

35,730,567

34,114,023,.

14,945,503
854.125

31,236.264

21,150,309
2,559,335

2.56

3.o3

appropriations:

common

income

stock
to

fixed

fNo forecast made.

GOV¬

Unadjusted

Railroads

RESERVE

FEDERAL

THE

*
,

32,422

(tons)—

States)

31,682

34,015

165,283

—

(5 States)

ERNORS

3,800
26,948

_____

(bushels.)

3,923
24,069

—
...

Seasonally adjusted

NEW

5,175

6,022

3,923
24,069

_______

__—

(pounds)

Banks

•

59,195

59 536

17,033

1955 basis of 125,828,319 tons.

13,115
108,817

8,789
21,316

(bushels)

Apricots

13,268

(tons)

(cleaned)

400*295*

370,254

110,383
61,031

—,_j._

—

Income

products.

Processed

___

Income

100):

Commodity Group—
All

241,100

(bags)

Miscellaneous

WHOLESALE

163,293

(tons).

summer

NONFARM

Other

Short

165,031

Insurance

purchases

53,532

——,

timothy

Grapes (tons)
Cherries.(12 States)

100

.Sept. 29

Other transactions initiated on the floor—
Total

1,499,282

MOODY'S

bers, except odd-lot dealers and specialists:
Transactions of specialists in stocks in which registered—
Total

1,154,595

29,678

(tons)

spring

Peaches

213,644

1,154,595
,

20,070

37,945

206,683

41,258

...

Hops( pounds)
Apples, commercial

700,930

397,440

233,714

"
•

(hundredweight)—

Sugarcane

„

10,515,960

244,628

39,114
214,457

45,276

INDUSTRIAL PRODUCTION—BOARD OF

10,118,520

703,047

45,215

;___

...

spring

Pecans

Sept. 29
Sept. 29

721,946

50,326

Sugar beets (tons)
Broomcorn
(tons)

Pears

Sept. 29

936,761

21,961

!___:

(pounds.)

Cranberries

sales—

sales

round-lot

193,110

228,610

966,574

51,948

Sweetpotatoes (hundredweight)
Tobacco
(pounds)
.——...

stock sales on the n. y. stock
round-lot stock transactions
of members (shares):

Short sales
Other

228,610

224~770

dealers-

Round-lot purchases by
Number

224,770

975,517

21,961

bags)

Total

Sept. 29

Short sales

3,241,536

370,254

Early summer

1,326,602

3,335,730

i—...

Winter

Late

1,272,859

3,369,102

,...4.2-2

'__

Fall

Sept. 29

14,542,000

(tons)

for

Peanuts

COMMISSION:

purchases)—t

13,115,000

253,571

__________

dry edible

Late

....

(tons)

Soybeans

ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK

Dollar value

Number

(bale)

Potatoes

.Oct. 19

13,268,000

.,i*

(bushels)

grain

3.86

102

(bushels)

(100-pound

3.75

653,346

)

AGRICULTURE—

2.2

3.82

4,804,195

(in thousands):

(bushels)

3.75

459,463

$564,000

______

REPORTING

...

3.82

Oct.

___________

CROP
OF

$548,000

*OF

(bushels)

3.91

503,380

DEPT.

bales

(bushels)

3.19

crop

(bushels)

3.65

470,412

(bushels)__!

(bushels)

Early

by dealers
shares

Oats

3.69

;

....

(bushels)

INDEX<—

100

AND

DEPT.

$549,000

5,535,214

COMMERCE)—

—

of Oct. 1

spring

3.70

11,024

YORK—

(bushels)

Winter

STOCK TRANSACTIONS FOR ODD-LOT
LOT

all

Wheat, all

2-.81

3.77
.

11,339

Crop

Other spring
Oct. 23

NEW

bales)

gross

PRODUCTION

Corn,

106.04

(running

500-lb.

Durum

YIELD DAILY AVERAGES:
U. S. Government Bonds

1049

BOND

MOODY'S

PRODUCTION

Production

Baa

Industrials

91.29

Oct. 23

——

Public

Oct. 23

—

:—i-:

Oct.

AGRICULTURE—1955

corporate

BANK

Sept. 30 (000's omitted)

COTTON

MOODY'S BOND TRICES DAILY AVERAGES:

Average

OUTSTANDING—FED¬

COTTON GINNING (DEPT. OF
As

-16

BRADS'fREET,

September

PAPER

RESERVE

IN TIIE

Electrolytic copper—
Domestic refinery at
Export refineryat

INCORPORATIONS

UNITED

QUOTATIONS):

development.!"...-'

other

All

5.174c

—

charges
,

■I

1,438,023

3AT

The Commercial and Financial Chronicle

(1778)

...

Thursday, October 25, 1956

* INDICATES

Now

Securities

Audubon Park Raceway, Inc.

ACF-Wrigley Stores, Inc. (10/29-31)
convertible subordinated sink¬

Price—At par.

ing fund debentures due April 30, 1972.
From sale of debentures,

with

together

—

—Lehman Brothers, New

American
Oct.

Discount

filed

York.

development;
porate

Office—Washing-1,

share for each two

new

N. M.

Price—$55 per unit. Proceeds—To purchase used
paper and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.

1956.

shares held

& Foreign Power Co., Inc.
(10/31)
185,000 shares of common stock (no par).

supplied

amendment.

of record

— $11
per
share.
Proceeds — For
Address—P. O. Box 515, Albuquerque,:

• Chicago

I/nderwriter—None.

Oct.

stock.

Underwriters—Lazard

The First Boston

Freres

and

Co.

Corp., both of New York.

American

Petrofina, Inc., New York
Sept. 26 filed 1,049,093 shares of class A common stock
(par $1), of which 50,000 shares are being offered to
directors, officers and employees and the remaining
999,093 shares are being offered for subscription by class
A

common

Oct.

10,

and

1956

class B

at the

common

rate of

stockholders

share of

one

stock for each four shares of class A

new

class B

offered

in
a

units

$500

follows:

"A" bond

"A"

100

units

Oct.

common

(each

and 50 shares of stock);

and

Aug. 22 filed 5,726,152 shares of capital stock being of¬
fered for subscription by stockholders of record Sept.
14, 1956 at the rate of one new share for each 10 shares
held; rights to expire on Nov. 5, 1956. Price—At par
($100 per share) payable in one or two payments./Proceeds—For expansion of plant and for advances to, and
investment

stocks

of,

subsidiaries.

None.

Underwriter—

'■*'

Anheuser-Busch, Inc., St. Louis, Mo.
Aug. 30 filed 328,723 shares of common stock (par $4).
Price—To

supplied

by amendment.

Proceeds

—

Estate of Edmee B.

Greenough, deceased. Underwriter—
Lee Higginson Corp., New York.
Offering—Postponed
indefinitely.

convector

heaters.

River, N. J.

Office—7

West

Underwriter—Berry &

•

Telephone Co.
Sept. 5 (letter of notification) 10,000 shares of common
stock (par $25) being offered to stockholders of record
Sept. 20 on the basis of one new share for each five
shares held (with an oversubscription
privilege); rights
to expire on Oct. 31.
Proceeds—For general corporate
purposes.

Office

—

4616

Park

Ave., Ashtabula,

Ohio.

Underwriter—None.
Atlantic Oil Corp., Tulsa, Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
named by amendment.

Underwriter

—

filed

principal

amount.

Proceeds—To

retire

indebtedness of

the

com¬

to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co.,
Inc., both of Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
pany

installation

one

for

each

machinery

and

Underwriter

—

five

equipment,

and

Industry Developers,

Bentonite

ing

expenses.

Utah.

Office—290

University Ave.,, Provo,

•

Ltd., Honolulu, T. H.
of

stock

common

New

af the

rate of

one

held; rights to expire

new

power

cranes

Underwriter—The First Boston Corp.,

York.

500,000

are

shares to promoters.
—

capital

For

and

offered

publicly,

and

Pro¬

general

corporate

purposes.

Under-

named later.

trust

certificate

for

Co., both of Atlanta, Ga., on Oct. 1 withdrew
Offering—Postponed.

underwriters.

Aug. 16 (letter of notification) $250,000 of 10-year 5%%
collateral trust bonds due Sept. 9, 1966.
Office—7352
Central Ave., St. Petersburg, Fla.
Predecessor—Lynch
Oil Co.
Underwriter—Security & Bond Co., Lexington,
Kentucky.

Co., Chicago, III.

Sept.' 28 filed 625,000. shares of capital stock (par $5) to
be

100,000

equipment, exploration, drilling, working

other

writer-r-To be

Price—At par ($1 per share).

voting

Continental Casualty

Burma Shore Mines, Ltd.,
Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which

ceeds

one

Consolidated Oil Management

share for

excavators

Hilsman &

and

basis

oversubscription privilege); subscription war¬
good for a period of three weeks. Price—
s$25 per share. Proceeds—To reduce bank loans. Under¬
writers—The Robinson-Humphrey Co., Inc. and
J. H.

Oct. 31, 1956.
Proceeds—For expansion program.

per share.
—[Produces

the

(with

■

Business

Baking Co., Atlanta, Ga.

(no par), to be offered for subscription by holders
outstanding common stock and participating preferred

rants

•
Bucyrus-Erie Co.
1
Sept. 25 filed 311,040 shares of common stock (par $5)
being offered for subscription by common stockholders

Price—$42

Laird & Co.

each eight shares of either class of such stock then held

diversified, open-end investment company
type. Underwriter—Brown Manage¬
Co., 833 Alaska St., Honolulu, Hawaii.

16, 1956

Columbia

'Stock

of the management

each five shares

—

Aug. 17 filed 26,768 voting trust certificates, each repre¬
senting the beneficial interest in one share of common

Business—A

of record Oct.

Underwriters

—Arthur L. Weir & Co. and Copley & Co., both of Col¬
orado Springs, Colo.
--

(par $1).
Price—At net asset value, plus a selling commission of
71/2% of the offering price. Proceeds—For investment..

ment

purposes.

stock

Investment Co.,

pool and related activities, bowling alley, site preparation
including parking, and land cost ($95,000). Underwriters

Bridgford Packing Co., Anaheim, Calif.
:
Aug. 13 (letter of notification) 222,222 shares of common
stock (par $1).
Price—$1.35 per share.
Proceeds—To
pay obligations, purchase equipment, etc.
Office—1308
No. Patt Street, Anaheim,
Calif.
Underwriter—J; D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.
filed 60,075

•

Colorado Springs Aquatic Center, Inc.
Aug. 23 filed 500,000 shares of common stock (par 10
cents)-. Price—$1 per share.- Proceeds—For swimming

Underwriter—Thomas Loop Co., New Orleans, La.

Brown

Oil

Corporation, and Model, Roland & Stone, both of New
York.,

Corp. of America

June 29 (letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For min-

■

Christiana

other corporate

New York.

the United States.

Atlas Credit Corp.,
Philadelphia, Pa.
June 11 filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968.
Price—100% of

basis

Corp. (10/30)
Sept. 26 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
tire $2,500,000 of outstanding term bank loans and for

Beneficial

July 11
Ashtabula

the

(with

writer—None.

electric

Standard Life Insurance Co.
(10/30)
290,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — To
selling stockholders. Underwriter — Lehman Brothers,

held

"Unit-Inch"

Oct.

Telegraph Co.

26,-1956

chinery; production equipment and materials; inven¬
tory; and working capital.
Business — Manufactures

—

^American Telephone &

Inc.

Chisago City Telephone Co., Chisago, Minn.
Sept. 6 (letter of notification) 1,000 shares of common
stock to be offered to stockholders.
Price—At par ($25
per share).
Proceeds — For new construction. Under¬

•

business.
Underwriters—White, Weld Tfc Co., Blyth
Co., Inc. and Hemphill, Noyes & Co., all of New York.

Helicopter Airways,

Inc.

Co., Newark, N. J.

the

pay

(letter of notification) 23,050 shares of common
to be offered to stockholders of record

operating capital.

$500

Water Street, Toms

expansion of exploration and development facilities and
the building up of the refining and marketing phases of

■

of stock).
Price: Of series "A" and "B"
each; and of series "C" units, $100 each.
Proceeds—To acquire or lease plant; for dies and ma¬

class A

and

Chinook Plywood, Inc., Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—►
At par ($3,000 per share). Proceeds—For acquisition of
a
plant site, construction of a mill building, purchase

100

units,

payable

oversubscription privilege); rights
to expire on Nov. 9, 1956. Price—$11.25 per share. Pro¬
ceeds—To,purchase lease rights to a hangar and for im¬
provements and working capital. Office—5240 West 63rd
St., Chicago, 111. Underwriter—None.

consisting

record

accounts

(par $1)

100 "B" units (each consisting of a $500 "B" bond and 50
shares of stock); and 1,975 "C" units
(each

stobk held; rights to expire on Oct. 31.
Price—$11 per
share. Proceeds—For acquisition of other oil properties,

consisting of

stock

Beckjord Manufacturing Corp.
•"
Oct. 12 (letter of notification) $50,000 of series
6%
debenture
bonds, $50,000 of series B 6% debenture
bonds and 207,500 shares of common stock
(par 10 cents)

3,856,985 shares, 53.4% of the total outstanding Foreign
Power

reduce

liabilities; also for working capital. Office
Boulevard, Farmingdale, L. I., N. Y. Underwriter

•—None.

Price

Proceeds—To

Electric Bond & Share Co., which will continue to hold

payable,

other current

Price—To

Price—90% of principal amount
of $100 each). Proceeds — To pay

denominations

—Allen

Rouge Water Works Co.
Sept. 11 (letter of notification) 6,946 shares of common
capital stock (no par). Price—$43 per share. Proceeds
—For extensions and betterments to water
system. Office
—131 Lafayette St., Baton
Rouge, La.: Underwriter—
None.
'
:
j«,
/

Fain is President.

and other
cor¬
Offering — Ex¬

Baton

car

None:

convertible debentures.

working capital.

share.

—

Century Controls Corp.
notification) $150,000 of 6% subordinate

(in

15,

equipment;

Underwriter

Oct. 4 (letter of

notes

Oct.

per¬

Century Controls Corp., Farmingdale, N. Y. /
Aug. 27 filed 120,000 shares of common stock (par $1).
Price—At market (over-the-counter price in New
York).
Proceeds—To selling stockholder
(Ray, Daisley & Co.,
Inc.) Underwriter—None.

Super Markets, Inc.
(letter of notification) 21,721 shares of common
(par $10) to be offered to stockholders on a basis

one

expansion;

purposes.

pected in November.

★ Barber's

Century Controls Corp., Farmnigdale, N. Y. *
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and

Oct. 15
stock

them

Proceeds—

Treasurer.

offered in units of 10 preferred shares and one common

300,000 common shares and rfeoffer
selected by it at $1.10 per share.

sons

Automation Industries Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share.
Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and

Co. of Georgia

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

filed

investment.

American Federal Finance Corp.,

for

Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C."
*
,

$1,000,000

American

ton, D. C.

—

Oct.

& Co.,

Proceeds—For

market.

Underwriter

of 20-year capital debentures,
5.75% series of 1956, due Nov. 1, 1976. Price—At par (in
units of $1,000 each).
Proceeds—For working capital.
Underwriters
Interstate Securities Corp., Charlotte,
N. C.; Johnson, Lane, Space & Co., Savannah, Ga.; and
A. M. Law & Co., Inc., Spartanburg, S. C. Offering—
Expected today (Oct. 25).
3

0.46875

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At

Oct. 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.

Moore

ISSUE

REVISED

tional

Underwriters—Berwyn
Louisville,. Ky.; Gearhart & Otis, Inc.,
New York, and Crerie & Co., Houston, Tex.
T.

(11/1)

rate

ITEMS

—
Blair & Co. Incorporated, Philadelphia
New York. Latter has
agreed to, purchase an addi¬

and

For general corporate purposes.

New York.

Allied Stores Corp.

Price—10 cents per share.

each share held.

$5,000,000 from private sale of 4%% 15-year notes, to
be used to repay about $8,000,000 of short-term bank
loans and for general corporate purposes. Underwriter—
Allen & Co.,

stockholders

common

ADDITIONS

Underwriter

July 13 (letter of notification) 600,000 shares of common
stock (par 10 cents) to be offered for subscription by

Oct. 9 filed $4,000,000 of
Proceeds

Registration

[ SINCE
•

offered

National

in exchange for outstanding capital stock of
Insurance Co® of Hartford at rate of 1*4

Fire

Continental

stock.

The

least

offer

51%

stock

for

conditional

(255,000 shares)

one

upon

National

the acceptance of

of National stock.

★ Celon Co.
Oct.

(letter of notification) 3,500 shares of common
(par $10) to be offered to a group of 22 key em¬
ployees of the company. Price — $11 per share. Pro¬
ceeds—For working
capital.
Office—2030 Pennsylvania
Ave., Madison, Wis. Underwriter—None.
stock

Centers Corp.,
Philadelphia, Pa. (11/12-16)
July 30 filed $8,000,000 of 5xk% sinking fund debentures
due Aug. 1, 1971, and
1,600,000 shares of common stock

(par

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). Price — $50 per
unit. Proceeds—About
$4,100,000 will be used to acquire

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private JVires

all

offices

Chicago

Cleveland

Adds Sales Impact!
Your offers of securities and services
you advertise them in
Tribune. No other medium in Chicago and
response

when

estate

and

develop additional sites for related real
activities, and for general corporate purposes.

greater

Mid-America

such comprehensive coverage of business
and the general public. For sales impact
that gets best results, call your advertising counsel
or nearest Chicago Tribune
representative today-

gives you
executives

seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of
them; the balance will be used
to develop
shopping centers at the seven sites and to

acquire

get

the Chicago

XExihmt
the

wo ai D'i

greatest

wiwsraha

Volume 184

Number 5580

The Commercial and Financial Chronicle

...

Cro-Plate

Co., Inc;'-

(1779)

"■<&

■

Dodge Manufacturing Corp. (11/5-9)
15 filed not to exceed 72,000 shares of cumulative
preferred stock (no par value). Price—To
provide a net to the company of approximately $2,000,-

*■

Aug. 22

(letter of notification) 4,123 shares o|«$ommon
(par $5) to be offered to stockholders or$$jj£e basis
of one share for each two shares now held or one share

stock

each

for

held.
Price—$9.50 per share.
Pro¬
working capital, etc. Office — 747 Windsor
St., Hartford, Conn. Underwriter—None.
warrant

units

$500

one

debenture

;

Devall Land & Marine Construction

Co., Inc.
(letter of notification) 150.000 shares of com$1). Price—$2 per share. Proceeds—Foi
payments of notes, to purchase and equip tnree boat*
and working capital/ Office—1111 No.: First Ave., Lake
mon

stock (par

Charles.
.

Texas.

La.

Underwriter-.—Vickers

„

effective.

Statement

Denver, Colo.

Aug. 29 filed 2,500,000 shares of 6%
:

cumulative
warrants

preferred

first

stock,

purchase 500,000

convertible

series

(par

•

$1), and
stock

(par 10 cents) to be offered for subscription initially by
I

stockholders in units of 25 preferred shares and

common

warrant to

unit

per

chase
.

purchase five

shares.

common

Price—$25.50

(each warrant will entitle the holder to

one

share at any

common

1957 at $2 per

pur¬

time prior to Dec. 31,

mortgages, to

repay

derwriter—Foster-Mann, Inc., New York.
•

Eternalite, Inc., New Orleans, La. (11/15)
Sept. 24 filed 200,000 shares of class A common stock
(par 50 cents).
Price—$4.50 per share.
Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Vickers Brothers, New York.
Excelsior

Oct. 3
stock

holders

further

acquisitions

and

working

capital.-

Under¬

writer—To be named by amendment.

NEW
October

United
,

States Air

(Mortimer

Co.,

October 29

(Allen

Inc.)

..Common

100,000

(Cruttenden

Eversweet,

The

First

Ohio

Co.

Louisville

Van

200,000

Corp
e,nti Model, Roland & Stone)

(Bids

Common

250,COO shares

Power Co
EST)

$28,000,000

EST)

$6,000,000

Pierce,

Standard

(Merrill

Lyncn,

Fenner

Beane

and

Pierce Fenner & Beane)

300,0u0

snares

Labouisse,

&r%Cc., Inc.; and Russ & Co.)
and

Los

450.000

Co.,

$1,500,000

Earth & Co.)

Pacific

.Common

(Bids

200,000 shares

Power

Bonds
$3,000,000

EST)

a m.

Rauscher, Pierce
of debentures

Class A

(Offering

Brothers)

Stores

(Sinitn,

Oil

630,000

Debentures

Corp

Barney

and

Merrill Lynch,
Beane) $170,593,900

Co.
&

November 16

$35,CO),COO

Gas

November 20
San Jacinto Petroleum
(White,

Debentures

___

Service

National

Bank

$1,000,000 shaies

(Offering

Common

underwriting)

Debentures

Corp

Weld

<fe

oo.)

Il:o0

stockholders—to

263,400

Co.)

underwritten

Pittsburgh & Lake Erie RR.
(Bids

noon

EST)

November 5

Dodge

Manufacturing
(Central

Republic

$10,000,000

December 3

Dallas

Power

by-Jfclorgan

Light

(Monday)

(Bids

noon

Bonds
$15,000,000

EST)

(Tuesday)

Michigan Bell Telephone Co
(Bids

invited)

December 5

Preferred
72,000

—Common

City Bank of Cleveland
to

stockholders—to
Turben

United

Cuban

Co.,

Fuller

November

iBids

Inc.)

$5,000,000

Co.)

$1,250,020

Merrhl,

(Wednesday)

—.Bonds

invited)

December

noon

:*$■£•-

(Thursday)

CST)

noon

CST)

(Morgan Stanley &

(Dillon,

Co.

and

Model,

—r

Florida

Aaron

Power

(Bids

Co.

Inc.)

the

retire
latter

subordinated promissory note
Office—New Orleans, La.

firm.

payable
Under¬

writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas, Texas;
and Russ & Co.,
Inc., San Antonio, Texas.
Genco Oil 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
to purchase 160,000 shares of
participating preference
stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
Offering to be made through selected dealers.

General Tire & Rubber Co., Akron, Ohio
July 27 filed 26,068 shares of $5 cumulative preference
stock (par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products
Corp.
The exchange offer will be subject to acceptance
by
owners of all of the
outstanding $1,060,000 notes and by
not less than 39,400 of the 68,837 shares of Carlon stock.

General

Uranium Corp.

(N- J.), New York
Jan. 18 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Underwriter—None. Maurice Schack,
Middletown, N. Y*
is President.

Statement effective March 11.

it Giant Food Properties, Inc.,
Washington, D. C. (11/13)
Oct. 23 filed $4,050,000 of 5V2% sinking fund debentures
due Dec. 1, 1971, and 891,000 shares of common stock
(par 10 cents) to be offered in units of $100 principal

p.m.

$40,000,000

EST)

debentures

25,000 units

are

and 22 shares of stock; of which
to be offered publicly and 15,500 units
exchange for properties. Price—$100

to be issued in

per

unit.

and

for

Proceeds — To acquire shopping center sites
working capital and other general corporate
purposes.
Underwriters — Auchincloss, Parker & Redpath, Washington, D. C., and Kidder, Peabody & Co.,
New York,

N. Y.

^ Giant Food Properties, Inc., Washington, D. C.
Oct. 23 filed 250,000 shares of common stock (par 10
cents) of which 100,000 shares are to be offered to the
public, 40,000 shares are to be offered to certain of the
company's employees and 110,000 shares to associates of

ate

the 40,500

Aug.

Price—$1

per

Proceeds—For

working capital and other corpor¬
Underwriter—None. [This is in addition

purposes.

units also filed with the SEC

Oct. 23.]

Inc., Durango, Colo.

filed 5,000 shares of class A voting common
(par $1), 295,000 shares of class B non-voting
stock (par $1), and $700,000 of 4% debentures

common

due

Dec.

31,

1975,

and

2,950

to be offered for sale in the States

Colorado in

units of 50 shares of class A

class

B stock and one $7,000
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.
debenture.

Great Northern Life Insurance Co.

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.
Growers Container Corp., Salinas. Calif.

Debentures

(Tuesday)

Light Co

12:30

January

Bonds

$20,000,000

(Bids

'^.Bonds
Roland & Stone)
........

Common
Co.)

$1,000,000

1957

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.

invited)

January 15, 1957

Debentures

$35,000,000

(Tuesday)

Louisiana Power & Light Co
to

invited)

about

Hartfield

Underwriter—None.

Oct.

filed

Stores, Inc.

(11/5-9)

240,000 shares of

H
stock

(par $1).
Price—$9 per share. Proceeds—To certain selling stocks
holders.
Underwriter—Van Alstyne, Noel & Co., New.
York; and Johnston, Lemon & Co., Washington, D. C.
common

Bonds

(Bids

•

(Tuesday)

New England Tel. & Tel. Co.—

„

Pyramid Productions, Inc
(E.

Read

December

$3,375,000

§45,000,000

„

$3,600,000

Northspan Uranium Mines, Ltd
_

tries

(Monday)

Common
&

Chicago & North Western Ry._ .Equip. Trust Ctfs.
(Bids

$20,000,000

Texas Eastern Transmission Corp

Chicago, Burlington & Quincy RR. Equip. Tr. Ctfs.**
(Bids

$30,000,000

Long Island Lighting Co.!

Common

be-underwritten

Oil, Inc

(S.
-

(Van AlBtyne, Noel & Co. and Johnston, Lemon & Co.)^45,l£0,000

(Offering

working
capital, etc., and from sale of debentures to Texas Indus¬

^.Debentures

Corp

Hartfield Stores, Inc
National

for

shares for every

Freiberg Mahogany Co. (10/31)
If filed $2,000,000 of subordinated debentures due
450,000 shares ,qf common stock (par 10 cents),
of which $1,500,000 of debentures and all of the
stock
are to be offered publicly
ip units of $500 of debentures
and 150 shares of stock; the
remaining $500,000 of deben¬
tures to be sold to Texas Industries,
Inc., which owns
about 75%
of
Freiberg's outstanding common stock.

stock,

December

Equip. Trust Ctfs.
$7,305,000

inc.)

1971 and

of Texas

(Monday)

Co.

Oct.

stock

$8,000,000

Bonds
EST)

a.m

30,000 .shares

Copimon

Stanley

offered

basis

Gold Mountain Lodge,

Detroit

subscription by stock¬
100 shares
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.

(Tuesday)

Texas Power & Light Co
(Bids

$15,000,000

Corp

to stockholders—no

(Offering

the

corporation and Tower Construction Co.
Common

Mobile

Fenner

(Friday)

(Offering to stockholders—to be underwritten)

Preferred

Brothers)

Pierce,

Chase Manhattan Bank

(Thursday)

Corp

(Lehman

stock

share.

Commission___Debentures

Peabody & Co.; Eastman Dillon, Union Securities &
Co.; and Merrill Lynch, Pierce, Fenner & Beane) 100,000 shares

Allied

Commjm

||k;4
_Comn$®r

stocknoiuers of Foremost Dairies, Inc—
by Allen & Co. arid Dean Witter <Sc

Co.)

Sinclair

Debentures

$900,000

underwritten

stock

Light Co.—

November

Manufacturing & Engineering Corp.
(letter of notification) 198,900 shares of class B

capital

are

(Thursday)

Eternalite, Inc..

(Kidder,

Federal
Oct.

amount of

Power

185,000 shares

(The First Boston Corp. and A. E. Ames & Co., Inc.)

Texas

Bonds

$50,000,000

(Quincy Cass-Associates) $500,OuO

Hydro-Electric

$1',375,000

Co.—

Gas

EST)

(Blyth & Co., Inc.)

Common

Angeles Drug Co

Quebec

Preferred

Lucky Stores, Inc

Debentures & Common

Fried: lens

Ctfs.

<•

(Wednesday)
&

a.m.

(Vickers

(Wednesday)

(Lazard Freres & Co. and The First Boston Corp.)

Weil,

November

Common

Freiberg Mahogany Co

Trust

Hayden,

American & Foreign Power Co., Inc

(Howard,

(Bids

Sierra

October 31

Equip.
$7,695,000

Service.

Electric

Service

500,000 shares

Co.)

RR
invited)

November 14
Public

Common
Stone &

East, Syracuse,

Underwriter—None.

Reichhold Chemicals, Inc

Schick, Inc.
Lynch,

Common

100,0JO shares

(Tuesday)

(Schwabacher & Co., Inc. and J.

Preferred
a.m.

Butane

Bonds
a.m.

Ohio Power Co

(Merrill

Horn

Common

Nashville

Proceeds—For working

Boulevard

Oil

(Bids

$8,000,000
-

Vincent & Co.)

and

(Tuesday)

Brotners)

Debentures & Common

(Auchincloss, Parker & Redpath and Kidder, Peabody
&
Co.)
$4,050,000

Class A

Lincoln;

$4,628,316

Corp.

(Bids

new

(Monday)

November

Beneficial Standard Life Insurance Co

& Co.

Inc.

(Laird

one

Giant Food Properties, Inc. Debentures & Common

$1,500,000

Trust

Corp.)

October 30

Christiana

at the rate of

Common

W'achob-Bender

(Lehman

1956

shares held; rights expire on Nov.

seven

(Burton J.

$4,000,000

Transportation Co.---

Co.;

10,

Centers Corp.

Debentures

(Whitehall Securities Corp.)

Brothers

New York

(Blair & Co. Incorporated)

(Monday)

Co.)

CALENDAR

Holiday Oil & Gas Corp
Watson

share for each

Oct.

November

ACF-Wrigley Stores, Inc
*

of record

(Friday)

Conditioning Corp.

Burnside

ISSUE

Insurance Co.

(letter of notification) 25,000 shares of common
j(par $6) being offered for subscription by stock¬

$1,312,500 of five-year 6% sinking fund debentures, and
for

share.

Erie

Price—To be supplied by amendment. Proceeds—From
sale of units to retire short-term loans and for

Explorations, Ltd.

(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-

•

share). Proceeds—To

per

123

Co., Midland, Mich.
Aug. 27 filed 150,000 shares of common stock (par $5)
to be offered for subscription by employees of the company 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.

June 4

non-

common

ex-

Underwriter—Columbia Securities

Eastern-Northern

Diversified Oil & Mining Corp.,

working capital.
Co., Denver, Colo. '

Houston,

Brothers,

one

Dow Chemical

May 16

—

of class A stock

ploraticn, development and acquisition of properties and
for

shares of stock.
Price—$525 per unit. Proceeds—For
working capital. Underwriter — Whitney & Co., Inc.,
Washington, D. C.
"
;
\
?.'* >
.
,

and

expansion and working capital. Of¬
Underwriter — Central Republic

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock (par
cent). Price — 10 cents per share. Proceeds — For

offered

Proceeds—For

Price—$10
Office

holders

" Dalton 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)
be

fice—Mishawaka, Ind.
Co. Inc., Chicago, 111.

capital.

convertible

000.

ceeds—For

15, 1956.

Oct.

$20,000,000

Continued

page

The Commercial and Financial Chionicle... Thursday, October 25, 1956
4<t

11 /»<»>

Continued from page

if Life Insurance Co. of Missouri
12 (letter of notification) an undetermined number
of shares of capital stock (par $5).
Price—To be filed

Oct.

Co.,/Ltd., Honolulu

Hawaiian Electric

at rate of one

share for each 10 shares

new

1; rights to expire on

Oct

fice—705 Chestnut
A.

held as of

Nov. 5. Price—$20 per share.

expansion program.

Proceeds—For plant

Underwriter—

Life Insurance Co. of South Carolina

Holiday

(10/29-11/2)
of common stock (par 10

Oil & Gas Corp.

Sept. 21 filed 500,000 shares
cents). Price—$3 per share.

(D.

•

Telephone & Telegraph Co.

(letter of notification) 6,653 shares of comijgjtei
stock (par $16%) being offered to common stockholders
of record Sept. 17, 1956 on the basis of one new share
for each 30 shares held; rights to expire on Nov. 12. Price
1

peri1share. Proceeds
For working;-capital, etc.'-'.
M. St., Lincoln, Neb.
Underwriter—None.

—$40

Office—1342

Lorain Telephone Co.
1

(letter of

share. Proceeds—To reimburse company for addi¬
tions to property in Ohio and for other corporate pur¬

per

6,695 shares of common
stock (par $25) to be offered to stockholders of record
Oct. 24, 1956, on the basis of one share for each eight
shares held on Oct. 24, 1956, and also to employees at a
rate not to exceed 10% of annual pay; warrants expire
Nov. 17, 1956. Price—$40 per share. Proceeds—For ad¬
ditional
plant facilities and improvements.
Office—
810 Ninth St., Greeley, Colo. Underwriter—None.
(letter of notification)

Office—203 West Ninth St., Lorain, Ohio. Under¬

poses.

writer—None.
Los

Angeles Drug Co. (10/31)
filed $500,000 of 6% convertible subordinated
1, 1971. Price—At par (indenominations of $500 and $1,000 each). Proceeds—For equip¬
11

Oct.

A-Horton Aircraft Corp., Las Vegas, Nev.
18 filed 100,000 shares of common stock (no par).
Price—To be supplied by amendment (maximum price
to be $25 per share).
Proceeds—To William E. Horton,
President of the company, who is the selling stockholder.
Oct.

Loyal American Life Insurance Co., Inc.
Sept. 28 filed 230,000 shares of common stock (par $1)
be offered for subscription by common stockholders

of record Oct.

15, 1956 at the rate of one new share for
Price—To be supplied by amend¬
ment.
Proceeds—To increase capital and surplus. Un¬
derwriters—J. H. Goddard & Co., Inc., Boston, Mass.,

each three shares held.

Oct.

basis

the

Standard

one

Oil

Co.

new

for

each

(New Jersey), which

owns

and

held.

69.64%

the outstanding

Imperial stock is said to have indicated
that it intends to subscribe to its portion of the offering.
Price
To be supplied by amendment (expected to be
about $55 per share).
Proceeds — For working capital
and expansion. Underwriter—None. Offering—Expected
early in November.

Thornton, Mohr & Farish, Montgomery, Ala.

Lucky Stores, Inc., San Leandro, Calif. (11/15)
11 filed 630,000 shares of common stock (par $1.25)
to be offered for subscription by common stockholders
,

Oct.

Foremost

Dairies,

—

International Bank of Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C l'
and D. Price—At 100% of principal amount. Proceeds—
For

working capital. Underwriter—Johnston, Lemon &
Co., Washington, D. C.
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
outboard cruisers.
Fla.

Office—471 N. E. 79th Street.

Miami,
Co., Miami Beach, Fla,

Underwriter—Atwill &

Investment Corp.

of Florida

Aug. 24 filed $515,000 of $60 cumulative preferred stock
to be offered in units of $1,000 eaclFand 5,150 shares of
common

stock
each

stock to

preferred

capital.

cents

offered to purchasers of preferred

per

Office—Fort

share at rate of ten shares for
bought.
Proceeds—For working

Lauderdale,

Fla.

Underwriter—

Jacobs

(F. L.)

Oct. 4 filed

Co.

Joa Co.

July 27 (letter of notification) 110,000 shares of common
stock (par 20 cents).
Price—$2.50 per share. Proceeds
sales

promotions and operating capital. Office—
411 No. Scenic Highway, Lake
Wales, Fla. Underwriter
—Anderson Cook Co., Inc., Palm Beach, Fla.
Kerr Income Fund, Inc., Los
Angeles, Calif.
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at
$10.98 per

Additional shares will be offered at

a price equal
Fund, plus a sales load of
Proceeds—For investment. Invest¬

to the net asset value

8%%

of such price.

ment

Manager

—

Inc.,

for each 12%

(with

the

ratio

Lucky

one

of the

California

Fund

Investment

Co.,

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, adminis¬
trative expenses and working capital.
Office — Kimo

Underwriter—Carroll & Co.,

Bldg., Albuquerque, N. M.
Denver, Colo.

Macinar, Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For general corporate purposes. Business — Manufac¬
tures steel and
aluminum specialty products.
Under¬
writer—C. J. Montague, Inc., 15 William Street, New
York 17, N. Y.
Madison Gas

& Electric

Co., Madison, Wis.
Sept. 10 filed 68,334 shares of common stock (par $16)
being offered for subscription by common stockholders
1, 1956 on the basis of one new share for
rights to expire Oct. 29. Price—

per share.
Proceeds
Underwriter—None.

—

construction

For

program.

July 9 (letter of notfication) 280,000 shares of common
(par 17% cents). Price—25 cents per share. Pro¬
payment on properties; repayment of ad¬
vances; exploration and development and working cap¬
ital. Office—508 Peyton Bldg., Spokane, Wash. Under¬

stock

ceeds—For

writer—Standard Securities Corp., Spokane, Wash.
Co.

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 States Se¬
curities Corp., same city.
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¬

Road, East Rutherford, N. J. Underwriters — Mohawk
Valley Investing Co., Inc., Utica, N. Y., and Security and

certificates of

participation, series K-l.
Proceeds—For investment.

Kinney Loan & Finance Co.
Sept. 11

(letter of notification) $150,000 of 6% sinking
debentures, series A, due Sept. 1, 1971. Price
—At par in denominations of
$1,000 each.
Proceeds—
For working capital. Office
911 Tenth
St., Greeley,
Colo
Underwriter—Wachob-Bender Corp., of Omaha
and Lincoln, Neb.

fund capital

—

★ Libbey-Owens-Ford Glass

P0**22
21>062 shares
to, be offered
to

UcmPlan>UrSUan^

Co.

holding series

and working capital.

Office—932

Paterson

Plank

Co., Lexington, Ky.

Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976. Proceeds—To pay off short term bank loans
and for construction program.
Underwriter —To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Bostor Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date
for

bids has been set.

options

comPany's Employee Stock Op-

Oct.

16 filed $2,500,000 of participations in limited part¬
nership interests. Proceeds—For acquisition and explo¬
ration

of oil

properties.

for

Oct.

subscription by

common,

the basis of

one

new

stockholders of
share

for

each

supplied by amendment.: Proceeds—To reduce bank

Nov; 20.

Price—To

Underwriter—None.

loans.
•

held; rights to expire

('.

Mormon Trail

Mining Corp., Salt Lake City, Utah
Feb. 9 (letter of notification) 3,000,000 shares oi capital
stock (par one cent). Price—10 cents per share.
Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol¬
eum Bldg., Salt Lake City, Utah.
Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
1
National By-Products, Inc.
(letter of notification) 2,000 shares of common

June 19
stock

(par-$l).

Proceeds—To pay
Irust Bldg.,
Des Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.
Federal

Price—$5 per share.

taxes.

estate

Office—800

National Life of America,

Bankers

Mitchell, S. Dak.

Sept. 21 filed 86,784.7 shares of common stocx (par $5)
to be offered for subscription by each of the company's

23,279 policyholders on and as of July 31, 1956 at the rate
of 1% shares of such stock and the balance of the shares
to be exchangeable for Founders certificates and cou¬
pons issued by National Life as a part or feature of
certain life insurance policies.
Price—$7.50 per share.
Proceeds—For working capital and other coiporate pur¬

Underwriter—None.

poses.

National Old Line

Insurance Co.

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
Equitable Securities Corp., Nashville,
Tenn., and New York, N. Y. Offering — Indefinitely
Nov. 15, 1955 filed

—

postponed.

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon
stock (par 3% cents).
Price—10 cents per share.
Proceeds
For mining expenses.
Office — 345 South
—

State

St., Salt Lake City, Utah.

Underwriter—Birken-

& Co., Denver, Colo.

mayer

North Pittsburgh

Telephone Co.

Sept. 12 (letter of notification) 6,000 shares of common
stock to be offered to holders of common stock of record
of Sept. 15,

1956

the basis of one new share for each
($25 per share). Proceeds
note.
Address—Gibsonia, Alleg¬

four shares held. Price-:—At par

—To

demand

reduce

Underwriter—None.

heny County, Pa.

if Northspan Uranium Mines, Ltd. (11/8)
Oct. 23 filed $45,000,000 of general mortgage bonds due
1,

(with common stock purchase warrants).
supplied by amendment. Proceeds — To

1963

—

To be

completion of uranium mines and mills in the
River area in Ontario, Canada.
Underwriters-

Blind

Morgan Stanley & Co. and Model, Roland & Stone, both
of New York.

Ocean City Pier Corp., Berlin,

Md.
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 200
shares of stock.
Price—$300 per unit. Proceeds— For
construction

and

operation of

amusement

pier. Under¬
of Johnstown, Pa.
Whaleysville and Ocean
City, Md., is Chairman of the Board.

writer
Lt.

—

Col.

Ohio

Paul

James

Korns,

Grazier

Power Co.

filed

director,
of

(10/30)

$28,000,000 of

first mortgage

bonds

Sept.

1988.

Proceeds—For construction program and to repay

bank

loans.

Underwriter—To

determined

due

com¬

petitive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Kuhn,
Loeb & Co.; Eastman Dillon, Union Securities & Co., and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co., Inc. and Stone & Webster Securities Corp. (jointly).
Bids—To be received up to 11 a.m. (EST) on Oct. 30.
Ohio

Power Co.

(10/30)

Sept. 20 filed 60,000 shares of cumulative preferred stock

Proceeds—For construction program. Under¬
by competitive bidding. Prob¬
The First Boston Corp.; Blyth & Co., Inc.;
Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley

(par $100).

writer—To be determined

able bidders:

if Mineral Projects-Venture E, Ltd., Madison, N. J.

of common stock (par $10)

employees

Bond

Price

Corp., Mobile, Ala.. (11/1))
30,000 shares of common stock (par* $5) to

Oct. 11 filed
be offered

-•

Service

Gas

Oct. 4 filed $2,000,000 of

* Keystone Custodian Funds, Inc., Boston, Mass.
(by amendment) 1,500,000 Keystone Custo¬

—At market.

Mobile

Office—3800 Com¬

Underwriter—None.

finance

ment

dian Fund

7/.

July

Mines, Inc.

Matador Oil

St., Dallas, Tex.

merce

Price

Mascot

which John Kerr is also President.

Oct. 18 filed

Mercantile National Bank of Dallas.

shares of Foremost common

plied by amendment. Proceeds — To Foremost Dairies,
Inc., the selling stockholder. Underwriters—Allen & Co.,
New York, and Dean Witter & Co., San Francisco, Calif.

Co.

(letter of notification) 250 shares of common
Stock (par $100) to be offered to stockholders. Price—
$200 per share. Proceeds—For payment of a note due the

21-day standby). Price—To be sup¬

$40

$3,000,000 of 6% convertible debentures due

derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.

held

each five shares held;

Nov. 1, 1966. Price—100% of principal amount. Proceeds
—To pay short-term loans and for working capital. Un¬

share.

stock

of record Oct.

None.

—For

Stores share

(John E.)

if Mitchell
Oct.

Underwriter—None.

if Imperial -Oil Ltd., Toronto, Canada
18- filed 1,504,271 shares of no par value capital
stock, to be offered for subscription by stockholders on

Mission Appliance Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common su>ck (par
$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds — For pur¬
chase of machinery and equipment. Office—New Albany,
Miss.
Underwriter—Lewis & Co., Jackson, Miss.

debentures due Aug.

ment, inventory and working capital.
Underwriter—
Quincy Cass Associates, Los Angeles, Calif.

filed

cent).

one

record

notification) 4,994 shares of common
stock (no par) to be offered to stockholders on the basis
of one share for each 20 shares now held.
Price—$25
Oct.

if Home Light & Power Co.
8

Lincoln

Oct.

(letter of

Orleans, La.

Oct.

Proceeds—For ex¬

pansion and working capital. Underwriter—None. Pub¬
made by employees of the company
and qualified licensed dealers.

lic offering will be

Co., Ltd.

H.)

1956 at the rate of two shares of new stock
held.
Price—To stockholders, $10 per

share; and to public, $15 per share.

notification) 7,692 shares of common
stock (par $20) to be offered to stockholders; rights to
expire Nov. 5, 1956. Price—$35 per share to stockhold¬
ers; to public,-at niarket (estimated at $39 per share).,.
Proceeds—For working capital.
Office—819 Canal St.,
New Orleans, La. Underwriters—Arnold & Crane; Nustock, Baudean & Smith; Scharff & Jones, Inc., and How¬
ard, Weil, Labouisse & Friedrichs & Co., all of New
12

each

for

New York.
Holmes

12,

Sept.

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.,

Oct.

339,600 shares of common stock (no par)
be offered for subscription by stockholders of record
filed

Oct.

None.
•

Proceeds—To selling stockholders. Of¬
St., St. Louis 1, Mo. Underwriters—
G. Edwards & Sons, St. Louis, Mo., and R. S. Dickson
Co., Charlotte, N. C.
..

by amendment.

Sept. 21 filed 77,000 shares of, common stock (par $20)
being offered for subscription by common stockholders

Inc., New York ,
2,500,000 shares of common stock (par
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate
purposes.
Underwriter — Gearhart & Otis, Inc., New
York. Offering—Postponed.

Minerals,

June

Underwriter—Mineral

Co., Ltd., of Madison, N. J.

Projects

Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—To be received up to 11
a.m.

(EST)

Oct^30.

Number 5580 -.1. The Commercial and Financial Chronicle

Volume 184

Orefield

Canada

Mining Corp., Montreal,

it Rabin Sales Co.,

shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be
supplied by amendment. Proceeds — For exploration
Oct.

15 filed 900,000

Underwriter—To

costs.

Oct.

Oxford

Oct.

Price

tickets;

purposes.

stock

Price—$25

11,500 shares of common
share. Proceeds — For
Office — 1310 Gulf States

Proceeds

To purchase

—

Co., Inc.

,,,

—For
core

•

to be offered in

exchange for

tas Fuel Co.

the basis of 2% shares of

each

Pocahontas

common

including

share.

common

The

Oct.

Bernet

19 filed

geological research and

development

Inc., Houston, Texas

Uranium

stock (par two cents).

Proceeds—For mining expenses.

per

Oct.

filed

Underwriter—Skyline

Oct.

Service

filed

Electric

$50,000,000

first

Gas

and

Co.

(11/14)

refunding

'•

mortgage

(10/30)

shares of common stock (par $1).
supplied by amendment. Proceeds — T6
Schick Gifford, the selling stockholder.
Un¬
500,000

Finance

reduce

bank

Underwriter—The

First

Bos¬

Stuart & Co. Inc.; The First Boston Corp.;
Kuhn, Loeb &
Co. and Lehman Brothers
(jointly); Morgan Stanley &
Co. and Drexel & Co. (jointly).
Bids—Expected to be
received up to 11 a.m. (EST) on Nov. 14.

Oct. 11 filed $3,000,000 of first mortgage bonds due Nov.

Corp., New York.

•

Puerto Rican Jai

July 27

filed

bonds due 1968, and

$1)

Alai, Inc.

$1,500,000

to be offered in units of

of stock.

12-year

30(),000 shares
a

Price—May be $675

construction

fronton

and

first

common

mortgage
stock

(par

unit.

Proceeds

activities.

Office-

San

Juan, Puerto Rico.
Underwriters—Crerie & Co.,
Houston, Texas; and Dixon Bretscher Noonan,
Inc.,
Springfield, 111.
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
reserved

for issuance

Power Co.

Proceeds—To

(11/14)

bank

repay

Underwriter—To

Southern

General

For

—

Offering—Temporarily postponed.

loans^yand for new

deternrfthed

by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Stone & Webster Secu¬
rities Corp. and Dean Witter & Co. (jointly); Blair &
Co.,
Incorporated. Bids—Expected to be received up to 11
a.m.
(EST) on Nov. 14 at 49 Federal St., Boston, Mass.

$500 bond and 100 shares
per

1986.

Insurance

Sept. 24 filed 95,714 shares of

$13

Underwriter

per
—

share.

The

common

stock

Proceeds—To

pay

bank

lanta, Ga.

ington, D. C.

Sept. 19 filed 679,012 shares of capital stock

Pyramid

...

Offering—Date indefinite.

Southern New England Telephone Co.

Productions, Inc., New York

(11/8)

loan.

Rbbinson-Humphrey Co., Inc., At¬

exereise of options. Price—
$1 per share. Proceeds—To purchase real property and
mortgage notes. Underwriter—Coombs & Co. of Wash¬
upon

be offered

for subscription

Oct. 1, 1956 at the rate of one

(par $25)

by stockholders of record
new

share for each eight

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.

held; right to expire

share.

Proceeds—To pay advances from American Tele¬

Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬

phone & Telegraph Co* (approximately $15,800,000) and

tions,

Inc.;

vision

releases.

and

for

working

capital.

Business—Tele¬

Underwriter—E. L. Aaron & Co.,

New

York.

Hydro-Electric

Commission

1, 1981.

Price—To be supplied by amendment. Proceeds
—For capital expenditures.
Underwriters
The First
—

Corp. and A. E. Ames & Co., Inc., both of New

York.

Nov. 2.

Price—$30 per

property additions <and improvements.

—-None.

(10/31)

Oct. 10 filed $35,000,000 of series P debentures due Dec.

Boston

for

Oct.

Quebec

writer—None, but
to dealers

Offering—Delayed indefinitely by

Elvin C. McCary,

Anniston, Ala., is President.
Standard Pressed

Steel

Co.

filed 52,050 shares of common stock (par $1)
of which 25,800 shares are being offered for subscription
by common stockholders of record Oct. 16, 1956 on the
basis of one new share for each 20 shares held; rights
to expire on Nov. 1, 1956. The remaining 26,250 shares
will be offered employees. Price—To stockholders, $72

share; and to employees, at market. Proceeds—For
program
and working capital.
Businessprecision metal fasteners; work benches,
Shelving and other shop equipment. Underwriter—Kid¬
expansion

Manufactures

der, Peabody & Co., New York.
Standard Register Co.,

Dayton, Ohio

(10/30)

Oct. 10 filed 340,000 shares of common stock (par $1), of
which

300,000 shares are to be offered to public and
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.
40,000

Underwriter—Merrill

Lynch,

Pierce,

Fenner

Beane,

New York.

by holders of outstanding common stock and series A
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
and

Sept.

27,

1956

(with

oversubscription

Equity General Corp.,4 a subsidiary of Equity Corp.;
to liquidate existing bank loans and for general cor¬
porate purposes.^ Office—1270 Niagara St., Buffalo 13,
N. Y. Underwriter—None, but Equity General Corp. has
agreed to purchase at par, plus accrued dividends, up to
290,000 shares of the new preferred stock not subscribed
for by stockholders. Latter already owns 137,640 shares
(3.23%) of Sterling common stock, plus $1,800,000 of
its convertible debentures.

(J. P.)

& Co., Inc., New York

June 28 filed $30,000,000 of

debentures due July 1, 1981.

Price—To be supplied by amendment.

owns

privilege);

rights to expire on Oct. 29. Price — At par ($10 per
share). Proceeds — To repay a $1,400,000 note held by

capital stock (par $25) to be issued to American

Telephone & Telegraph Co., which

July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, being offered for subscription,

Stevens
company

(See also next paragraph.)

Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
new

selling commission will be" allowed

Underwriter

Southern New England Telephone Co.

for sales effected by them.

Sterling Precision Corp.

Co., Atlanta, Ga.

(par $5), of
which 50,000 shares are to be offered publicly; 20,714
shares are to be offered in exchange for 10,357 shares of
$10 par common stock of Progressive Fire Insurance Co.;
and 25,000 shares are to be offered to certain other per¬
sons.
Price—To public, $14.50 per share; and to certain
persons,

Fe, N. M.

filed

(par $1>,
211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A
stock of Capital Fire & Casualty Co. and common stock
of Allied Investment Corp.
Price—$2 per share. Proceeds—For purchase of stock of Capital and Allied firms*
and for purchase of U. S. Government bonds. Under¬

•

Sierra Pacific

Halsey,

•

loans.

ton

per

Co.

bonds due Nov. 1, 1986. Proceeds—To reduce bank loans
and for construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:

construction.

—

Sept. 27

Sept. 18 filed $15,000,000 of sinking fund notes due Oct.
1, 1971. Price—To be supplied by amendment. Proceeds
—To

rights to expire Nov. 2. Price—At
Proceeds—For working capital and
Underwriters
Schneider,

loans.

of which

Philadelphia, Pa.

Seaboard

bank

Sept. 12 filed 450,635 shares of common stock

corporate

derwriters—Merrill Lynch, Pierce, Fenner & Beane and
Hayden, Stone & Co., both of New York.

com¬

share).

stockholders of record

preferred share for each 11

Southwide Corp., Anniston, Ala.

exploration

for

general

•

Securities, Inc., Denver 2, Colo.
Public

Inc.,

per

common

one

Pa.

Schick Inc.

Florence

Price—Five cents

Co.,

Philadelphia,

Corp.

March 21 (letter of notification) 6.000.000 shares of
mon

for

Manufacturing Co. into Sandura Co., Inc.
Price—$10
per share.
Proceeds — For expansion, equipment and
working capital.
Underwriter — Butcher & Sherrerd,

Price—To
Federal

loans,

and

Underwriter—White, Weld & Co., New Yojrk.

Sandura

Prudential

bank

rate

1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
corporate purposes.
Underwriter—Southwestern Secu¬
rities Co., Dallas, Texas.

Price—To be supplied by amend¬

activities

Lathrop,

Co., Amarillo, Texas

Southwestern Resources, Inc., Santa
June

(11/20-21)

Oct. 8 filed 150,000 shares of preferred stock
(par $7.50)
and 50,000 shares of common stock
(par^five cents) to
be issued in connection*with the
merged of Paulsboro4

555,000 shares of

offered

V./

Hickman, Inc., Dallas, Tex.; The First .Trust
Co. of Lincoln, Neb.; Beecroft, Cole & Co., Topeka, Kan.;
Boettcher & Co.; Denver, Colo.; and Dewar, Robertson
& Pancoast and Austin, Hart & Parvin, both of San
Antonio, Texas.

Corp. of Indianapolis, Ind., for

retire

the

shares held;

^retirement

$8,000,000 of subordinated convertible de¬

Proceeds—To

de¬

common stock
(par 10<i)
exchange for shares of common stock
of San Juan
Exploration Co. at rate of 0.46413 of a
share of Producing Properties stock for each San Juan
share. The offer is to expire at 3 p.m. (CST) on Nov.
15, 1956.

filed

purposes.

h^Y£

been deposited for exchange by Nov. 30.

^Producing Properties,

and

Pittsburgh for
will

Securities

bentures, 1956 series.

stock of Pocahon¬
offer

State

Investment

subscription by

($20

par

drilling,

common

Uranium, Inc., Denver,! Colo.

core

Southwestern

Oct.

it San Jacinto Petroleum Corp.
Oct.

(par $1)

clared effective if at least 85%.of the latter shares

(

Co., Inc., Brooks & Co. and
Clinger, Inc., all of Wichita, Kan.

fered for

assays;

ment.

Pittsburgh Consolidation Coal Co.
3 filed 2,678,697 shares of common stock

Ltd., Toronto, Canada

Oct. 1 filed 68,323 shares of 5.75% sinking fund preferred
stock (with common ^tock purchase warrants) to be of¬

offering to residents of Indiana.

170,455 shares of class A

Price—$1.60 per share. Proceeds
—For organizing a small loan company. Office—212 Ford
Law Bldg., Phoenix, Ariz. Underwriter—None.

Oct.

Union Oils

Underwriter—None.

Herrick

Ross

Indiana

stock.

common

Price—$18 per share. Pro¬
improvements to property.

Small-Milburn

—

voting

oversubscription privilege);

and

;

Engineering Corp., New York

for mining shaft; to exercise purchase of
option agreement on additional properties; tor working
capital and other corporate purposes. Underwriter

None.

it Pioneer Loan Co.
Oct. 15 (letter of notification)

additions

Southern

holders.

Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par
(10 cents per share). Proceeds

Underwriter—

stock.

Oct. 30.

Offer will become effective
upon de¬
of the outstanding common stock,
presently owns 61.53%. The offer will
Nov. 15.
Underwriter—None. Statement ef¬

which

Samson

Price—Not to exceed market value (estimated at $13 per

share).

(with

rights to expire

Aug. 24 filed 750,000 shares of capital stock (par $1>.
Price—64 Vz cents per share. Proceeds—To selling/Stocks

;

shares.

fective Oct. 3.

(par $1) to be offered under
participation plan for employees.

stock

Co., Dallas, Texas

each 12 shares held

10 filed

expire

Underwriter—

stock

common

company's

Union Gas

Under writer—None.

posit of at least 90%

per

it Piasecki Aircraft Corp., Philadelphia, Pa.
19 (letter of notification) an undetermined number

the

also preceding para¬

notification)

(J. O.)

Waldron

Oct.

of. shares of

(See

Southern

ceeds—For

19,059 shares of common stock (par $1)V
being offered in exchange for common stock of John
Waldron Corp. at the rate of one Ross share for each two

;. -.,

Bldg., 109 North Akard St., Dallas, Tex.
Newborg & Co., New York.

Ross

Sept.

(letter of notification)
(no par).

general corporate purposes.

•

Peerless Life Insurance. Co;
Oct.

(letter

10.

99,630 shares of class A T
Southwest Grease & Oil Co.
)
participating preference stock (par 80 cents).
Price—$1.75 per share. Proceeds—For^completipn of a :
Sept. 27 (letter of notification) 40,000 shares of cjommon
sulphur mill; working capital, etc. Office—64 N. E. 73rd
stock.
Price—At par ($7.50 per share).
Proceeds—For
St., Miami, Fla. Underwriter—Frank L. Edenfield & Co.,
purchase of new equipment and working capital.; Officer
Miami, Fla.
—220
W.
Waterman
St.,
Wichita
2,
Kan.
Underwriters-—
,
.
v-'

17, N. Y. Un¬
derwriter—Wister- R. 'Smith &. Co., 40 East 54th Street,
.

Oct.

cumulative

Office—527"Madison Avenue, New York

Re-Mark Chemical
Oct.

vc£ 250 race ticket machines; for purchase

,>•.

(EDT)

a.m.

Sept. 14 filed 170,281 shares of common stock (par $1)
being offered for subscription by common stockholders
record Sept. 26 on the basis of one new share for

—

duce

short-term

loans,

retire

Proceeds—To re¬

$950,000 of 4%%

firs*-

mortgage bonds and $368,679 of 6% preferred stock of
subsidiaries. Underwriter—Goldman, Sachs & Co., New
York.

Offering—Indefinitely postponed.

21.61% of the

outstanding stock of Southern New England Telephone

received up to

(par $1).

—

N. Y.

Equipment Corp.
Aug. 24 (letter of notification) 60,000 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For

stock

common

Bids—Had been expected to be

•

(11/14)

200,000 shares of

Hutzler.

graph.)

—Blyth & Co., Inc., San Francisco, Calif., and New York,

Pari-Mutuel

Co., Inc.

To be Supplied by amendment. Proceeds
For
working capital and construction program. Underwriter

writer—Blyth & Co., Inc., San Francisco and New York.
Offering—Postponed until after Election Day.

New York 22,. N..

filed

<?o.;
Co.; Chas. W. Scranton & Co., and Cooley &
(jointly); The First Boston Corp.; Salomon Bros! &

Co.

Proceeds—To American Telephone & Telegraph C<K

Putnam &

Oct.

amendment. Proceeds—For construction program. Under¬

race

of sale "of produce; and for
and land rental advances.

it Reichhold Chemicals, Inc.

Lighting Corp.
Oct. 10 filed 200,000 shares of cumulative convertible
preferred stock (no par). Price — To be supplied by

working" capital and general corporate

expenses

(letter of notification) 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.

Pacific

of 40 machines! for issuance of semi-blank

farmers

operating

Redi-Food

Sept. 17 (letter of notification) $250,000 of 6% renewable
(upon demand) Sept. 10, 1961. Price
—At face amount (in denominations of $100 and $500
each). Proceeds — For working capital. Office — 2233
North Broad St., Philadelphia, Pa. Underwriter—Walnut
Securities Corp., Philadelphia, Pa.

and for

Co.

Underwriter—To be determined by competitive
bidding.
Frobable bidders: Blyth & Co., Inc.;
White, Weld &

Underwriter—None.

Loan Co.

construction

payment

general

debentures payable

•

Fla.

(letter of notification) 100,000 shares of com¬
stock (par 10,cents). Price—$3. per share. Proceeds

—For

panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders.

Belle Glade,

mon

Michael Tzo-

later.

named

(1781)

Continued

on page

The Commercial and Financial Chronicle

(1782)

Continued jrom page

•

Inc., Pompano Beach, Fla.

Sun Castle,

stock (par $5) and
6% mortgage bonds due March 15, 1972
(of $1,000 principal amount each). Price—At par. Pro¬
ceeds—To construct and operate a resort motel and club
upon property in Broward County, Fla.
Underwriter—
Oct. 15 filed 1,598 shares of common

800 registered

Texas Calgary

Co., Abilene, Texas

—Schwabacher

stock (par 25
cents).
Price—At market from time to time on the
American Stock Exchange or the Toronto Stock Ex¬
Sept.

filed

change

3,700,000 shares of capital

private sale. Proceeds—To A. P.
Underwriter—None.

the selling stockholder.

Scott,

Light Co.

(11/20)

•

■

Underwriter—To be determined by competitive <
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co., Blyth & Co., Inc., Kidder, Peabody
& Co.- and Merrill Lynch, Pierce,
Fenner & Beane *
(jointly)? Eastman Dillon, Union Securities & Co. and
Salomon Bros. & Hutzler (jointly); White, Weld & Co.;
Lehman Brothers, Drexel & Co. and Hemphiil, Noyes &
Co. (jointly); The First Boston Corp. Bids—Ekpected to
be received up to 11:30 a.m. (EST) on Nov. 20i
\
Texas Power & Light Co.

(no par). Price—To be supplied by amendment. Proceeds
construction program. Underwriters — Kidder,
Peabody & Co., Eastman Dillon, Union Securities & Co.

Lynch, Pierce, Fenner & Beane; all of New

York.

com¬

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.
Togor Publications, Inc., New York
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
Travelers

Oct. 16

Club

International, Inc.
(letter of notification) 200,000 shares of

common

(par 10 cents). Price—$1.50 per share. Proceeds
advertising expenses and working capital. Busi¬

ness—Travel

York, N. Y.

service.

Office

—

West 43rd

St., New

Underwriter—None.

Oct. 22 filed 19,200 shares of common stock (par
$1) to
be offered to eligible employees of the company and its

subsidiary, Little Sister Coal Corp., under the company's
Employees' Stock Purchase Incentive Plant.
Union Chemical & Materials Corp.
May 25 filed 200,000 shares of common stock (par $10).
Price—To be supplied
by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
—Allen & Co., Bache & Co. and
Reynolds & Co., Inc.,

all of New York.

Statement may be

fering to be made

soon.

amended with of¬

ic United Cement Co., Inc., Montevallo, Ala.
(letter of notification) 18,500 shares of common
(par $1), Price—$12 per share.
Proceeds—For

Oct. 19
stock

equipment

improvements and working

capital.

Under¬

writer—None.

Co..

share).

per

company

stock.

common

Colo.

plans to offer and
Price—At par

Proceeds—To construct hotel; set up in¬

stalment

loan company; and for
working capital and
general corporate purposes.
Underwriter—Allen Invest¬

ment

Co., Boulder, Colo. Stock

be sold in Colorado^

★ Burroughs Corp.
Oct*v-15 it

totaling

botn

announced

was

between

in the form of

for new

financing

$30,COO,000,

probably

that plans

$25,000,000 and
kind of debt.

some

Proceeds—For expan-;

■

Securities Fund,

Oct.

it was announced stockholders will vote Nov.; 13
increasing the authorized capital stock (par $12.50)
from
12,000,000 shares to 13,000,000 shares, the addi¬
tional 1,000,000 shares to be offered for
subscription, by

Inc., Boston, Mass.

Sept. 4 filed 200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
ment.

eral

Underwriter—Venture

Securities

Corp., 26 Fed¬

stcokholders of record Nov. 15, 1956 on the basis of one
new:'share for each 12 shares held; rights to expire on

St., Boston, Mass.

E>ecr3.

Walt Disney Productions, Burbank, Calif.

Underwriter—The First Boston Corp., New York.

*r-

filed

$7,500,000 of convertible subordinated
debentures due Sept. 1, 1976. Price—To be supplied byT
amendment.
Proceeds—$243,740 to redeem outstanding
4% debentures, series A, due 1960; balance for retire¬
ment

secured

Oil, lnc.

( 11/5-9)
Aug. 29 filed 2,573,625 shares of common stock
cents), of which 2,000,000 shares are to be

(par 10
offered

publicly and 573,625 shares will be issued in exchange
for stock of Compania de Formento Petrolero
Ted Jones,
S. A. (amendment filed Oct. 16
reducing proposed of¬
fering to 1,000,000 shares). Price—$1.25 per share. Pro¬
ceeds—For development and
exploration costs. OfficeLos Angeles, Calif.
Underwriter—S. D. Fulleiv & Po.,
,

New York.

to be offered to the

public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At
market prices.
ceeds—For working capital and

Pro¬

general corporate pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Burnside &
Co., Inc., New York.

★ United

States

Steel

now

$60,000,000 of interests in

Savings Fund Plan
shares of

common

for Salaried

the Corporation's

Employees and 450,000

stock which may be acquired pursuant

plan.

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 (par 15
cents) to be offered in units con¬
sisting of one share of preferred and one-half share of
common.

capital.

Price—$11

Office

per

unit.

Proceeds—For

working
Dallas, Tex.

Gibraltar Life Bldg.,
Underwriters—Muir Investment Co., and Texas National
.Corp., both of San Antonio, Tex.
Universal

—

Fuel

Chemical Corp.

May 1% (letter of notification) 300,000 shares of
capital
Price—At par ($1 per
share). Proceeds—For min¬
ing expenses. Office—825 Broadway,
Farrell, Pa. Under¬
writer—Langley-Howard, Inc.. Pittsburgh, Pa.
stock.

shareholders.

of
«

chase

J days.
'

working capital. Busi¬

Co.

Underwriter—None;

Price—To

Harrisburg, Pa.

tion

approximately 300,000 shares of

registra¬

common

announced

company

$24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive
bidding.
\Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co.
Boston Corp.; Harriman Ripley &

announced

common

and

(jointly); The First
Co., Inc.

Dallas
10 it

corporation plans to issue and

(the

latter

for

routes

common

carrier

ber, Jackson &

account

Business—A

operating

over

3,300

Illinois, Indiana, Michigan and Ohio.

Office—Grand Rapids, Mich.

N. Y.

the

Proceeds—From sale of deben¬

tures, for expansion and working capital.

Curtis,

The

stock

the public.

Power &

purchase

which

is subject to ;sEC
will; require about 60

Underwriters—Dean Witter &

Light Co.

(12/3)

,1:

reported company plans to issue and sell

was

$15,000,000
—

construction

repay

Underwriter—Paine, Web¬

Boston, Mass.,

Offering—Indefinitely postponed.

and New
,*

York,

,
.

Underwriter—To

program.

de¬

by comeptitive bidding.
Probable bidders:
White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co. and Harriman Ripley & Co., Inc. (joint¬
ly); Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
-

(jointly): Merrill Lynch, Pierce. Fenner & Beane: Leh¬

Brothers; W. C. Langley & Co. and Eastman Dillon,
(jointly); Blyth & Co., Inc., and
Offering—Not expect¬
ed until early in 1957.
'
j.
man

Union Securities & Co.

The First Boston Corp( jointly).

Oct.

15 it

(11/12-16)-

-■»

reported that this company

was

(a consolida¬

tion of Vita-Fresh Corp. and John H. King &

Price—$5

miles

stock.

the

Proceeds

(par

motor

subsidiary of

first mortgage 30 - year
bank loans and for con¬
struction program. ' Underwriter — To
be determined
by competitive bidding. Probable bidders: Halsey, Siuart
& Co. Inc.; The First Boston Corp.; Salomon Bros. &
Hutzler; Kidder, Peabody & Co; and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Eastman Dillon, Union
Securities & Co.; Kuhn, Loeb & Co.; Equitable Securities
Corp.; Blair & Co. Incorporated and Baxter, Williams &
Co. (jointly); Lehman Brothers.
Bids—Expected to be
received up to noon (EST) on Dec. 3.
bonds.

early

haul

Eversweet, Inc.

$1,000,000 of 6% convertible subordinated debentures

short

Oil Co. of Texas,

Glore, Forgan & Co., New York. Offering—Ex¬

due Oct. 1, 1971 at par and 75,000 shares of common stock

of selling stockholders).

Standard

approximately

Associated Truck Lines, Inc.

per

termined

plans to issue and

December

$11

As part of the contract, Anderson-Prichard and

—For

stock.

Appalachian Electric Power Co.

Delaware Power & Light Co.

was

Underwriter—Kidder, Peabody & Co., New York.

$3)

Nov. 8 for

Aug. 13 it was reported company plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds

reported that this corporation (formerly
Aircraft & Marine Products Corp.) plans
early

sell

was

Col-Tex

stock

Oct.

redeem

Oct.

Oct. 11 it

(CST)

up to noon

pected about middle of November.
•

was

Prospective Offerings

(11/8)

Standard of Texas have agreed to sell the Cosden common

derwriters—Smith, Barney & Co.; Glore Forgan & Co.
Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.
*

May 31 it

4%%
to buy

announced company has agreed to pur¬
Refining Co. from Anderson-Prichard

was

Co. and

Cosden

and

★ AMP Corp.,

company

Cosden Petroleum Corp."

SepL 20 it

registration

.&*■

$7,450,000

Standard Oil Co. of California, for about 350,000 shares of

supplied by amend¬
presently outstandingfirst mortgage bonds, to repay bank loans and for ex¬
pansion program.
Business—Meat packing firm.
Un¬
—

-retire

cars which it now leases. Underwriter—Halsey,
Co. Inc., may be included among the bidders

St., Chicago 6, 111.,

Oil

$20,000,000 of 20-year sinking fund de¬
1976.

ap¬

purchase from it of $3,375,000 equipment trust cer¬
tificates to be dated Nov. 15, 1956 and to mature in1 15
equal annual instalments.
Probable
bidders:
Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

13 filed $800,000 of 6% subordinated cumulative
debentures due Dec. 1, 1976, and 6,000 shares of common
stock (no par) to be offered in units of- a
$400 deben¬
ture and three shares of stock. Price —
$500 per unit.

due

exemption of $9,000,000

Bids will be received by the company, at 400 West Madi¬

Aug.

Proceeds

company for an

the

! Wildcat Mountain Corp., Boston, Mass.

bentures

the ICC has denied

announced

was

■★r Chicago & North Western Ry.

expected until sometime this Fall.

ment.

mortgage bonds from the Commission's bidding

£ox

son

writers—Hemphill, Noyes & Co., New York; Courts & '
Co., Atlanta, Ga.: and Equitable Securities Corp., Nash-:
ville, Tenn.
Offering — Temporarily postponed.
Not

filed

Stuart ,&

be used to retire outstanding series A and series B
5%
first mortgage bonds, and for expansion
program. Under¬

Wilson & Co., Inc.

for this issue.

Proceeds—Together with proceeds from private sale oi
$1,500,000 4%% first mortgage bonds and $900,000 oi
3-year unsecured 4M>% notes to a group of banks, will

Aug. 28

first

.299

account and 61,000 shares for a selling
Price — To be supplied by amendment.

and

Probable bidders: Halsey, Stuart &
'

unsecured serial notes and to allow the

company's

center.

requirements.-Proceeds—To

Co., Chattanooga, Tenn.

recreation

(11/8)

plication by this

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common'

construction

Inc.; Salomon Bros. & Hutzler.

Sep},;29
common

Bldg.,
City, Utah. Underwriter—Us-Can Securities,
Inc., Jersey City, N. J.

Proceeds—For

RR.

this company at its office in
noon (CST) on Nov. 8 for tne pur¬
$3,600,000 equipment trust certificates
be dated Nov; 1, 1956 and to mature in 30 equal semi¬

Co.

Salt Lake

ness—Mountain

Quincy

received by

annual instalments.

(See

Chicago & Illinois Midland Ry.

Aug. 24 (letter of notification) 500,000 shares of

the

chase from

Com¬

stock (par 10 cents). Price—50 cents
per share. Proceeds
—For development of oil and gas. - Office—Felt

Wheland

Burlington

Chicago, 111.,

Western States Natural Gas Co.

sell

Corp.

Bids-will

Underwriter—Kidder.

Conditioning Corp. (10/26-29)

600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000
shares, are

★ Chicago,

27 filed

Oct. 16 filed

note.

Statement withdrawn.

plans stock offering
under "Prospective Offerings.")
pany

United States Air

demand

Peabody & Co., New York.

offering to be made by officers and agents of company.'

United Cuban

to the

3,000,000 shares of its

($6

Boulder,

Corp.,

announced

stockholder.

★ Truax-Traer Coal Co.

Sept.

Barth

Acceptance

was

Thermoray Corp.
June 29 (letter of notification) 380,000 shares of

•

and

sell

Aug.

•

Underwriter—May be Lehman Brothers,
Vendo Co., Kansas City, Mo.' —
♦
New*York.
v\
•
•• — ; *
'•
;
Sept. 20 filed 32,778 shares of common stock (par $2.50)
to be offered to holders of Vendorlator Manufacturings f • Carolina Power & Light Co.
'
Co. common stock purchase warrants in lieu of their
OcC .15 it was reported company, plans to issue and sell
right to buy Vendorlator common stock. Warrants arev betiveen $15,000,000 and $20,000,000 oi first mortgage
exercisable until Sept. 30, 1960. Price—$7:33 per snare..
bon^s. Underwriter—To be'determined by competitive
Proceeds—To redeem Vendorlator debentures.' .Under.bidding, Probable bidders: Halsey, Stuart & Co. Ibc.;
writer—None.
v
; u
Kuhn, Loeb &.Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp., (joint¬
Venezuela-Diamond Mines,
Inc., Miami, Fla. v
ly);/Equitable Securities Corp.; Blyth & Co., Inc.; KidAug. 31 filed 1,500,000 shares of common stock. Price—
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
At par (20 cents per share). Proceeds—For exploration >& Beane (jointly).
Offering—Expected in 1957.
."■'f
and mining operations in Venezuela.
Underwriter—Co¬
• Chase Manhattan
lumbia Securities Co., Inc., of Florida, Miami, Fla.
Bank, New York (11/16) '
'
•
Venture

—For

stock

Co., Inc.
Francisco, Calif.

San

(10/31)

Oct. 16 filed 100,000 shares of cumulative preferred stock

—For

Boulder

July

gram.

mon

(11/13)

sioa. program. '

Oct. 16 filed $10,000,000 of first mortgage bonds due 1986..
Proceeds—To repay advances and for construction pro- :

and Merrill

Service

Thursday, October 25, 1956

Power &

Texas

Butane

Liquid Gas & Appliance Co., Teton Gas & Appliance •
Co., General Equipment Co., The McHade L. P. Gas Co.,,
Lincoln 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. Office—Fresno, Calif. Underwriters

Ernest C. Cassill is President and Treasurer.

None.

Horn

Van

Sept. 28 filed 75,000 shares of cumulative convertible
preferred stock, series A (par $25). Price—To be sup¬
plied by amendment.
Proceeds—To acquire stock of

...

juice.

registration, of .100,000
per

Co.) plans
stock.

common

share. Business—Producers of fresh orange

Underwriter—Burton J. Vincent

& Co., Chicago,

; 1

111..
Flair Records Co.

Aug. 13 it

was

reported

company

to residents of New York State

stock.

Price—$2

Inc., New York.

per
.

share.
,

p*ans to issue and sell

50,000 shares of common

Underwriter—Foster-Mann,
.

Volume 184

Number 5580

...

The Commercial and Financial Chronicle

(1783)
•

Florida Power &
Light Co.

Oct. 15 it

was

bonds.

$20,000,000

Proceeds

struction

(12/11)

reported company plans

approximately

—

program.

competitive bidding.

first

year

Metropolitan Edison Co.
issue and sell

July

bank loans and for con¬
Underwriter—To be determined by
repay

Tentatively expected

p.m. on Dec.

11.

to be received up to

Aug.. 28

bonds in the next 16 months.

12:30

Michigan

Stores, Inc.

Union securities &

tins

voted

increase

the

authorized

Co., New

corporation,
shares

sidiaries.
—None.

sell

class

Utilities

Tegen,

are

Expected to be received
v

certain
stock

tne

whicn

National

Bank

Sept. <10 it

was

Dec.

up to

Bids—

in part, for cost of new
mated $217,400,000.

Bank

to
of

one

offered
stock

that

the

•

share for each 15 shares-

new

Merrill Lynch,
Pierce, Fenner & Beane acted
clearing agent in previous offering to stockholders.

proposes

to offer

an equity offering planned to take
year.
Business—To explore, drill and
oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.

operate

Pennsylvania

capital and surplus accounts. Underwriter—Mer¬
rill, Turben & Co., Inc., Cleveland, O.

Telephone Co.'s investment

will

r/A-V

New England Electric

New York.

;

High Authority of the

European

Community, Luxembourg
July 9 this Authority announced

Coal

Steel
;

that

American bank¬

ing group consisting of
Kuhn, Loeb & Co., Tne First
Boston Corp. and Lazard
Freres & Co. has been ap¬

pointed to study the
possibility of a loan to be issued
on the
American market. The
time, amount and derma
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.

System

Light Corp., Lawrence Electric Co., Haverhill Electric
Amesbury Electric Light Co., into one company
luring 1956. - This would be followed by a $20,000,000

and

Sept. 24 it

writer

will

May be determined by

decide

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.

ing,

Lehman
"

—

New

Interstate Fire &
Casualty Co.

.Jan.

was

announced

company

Pittsburgh Rys. Co.
was announced that Standard Gas & Electrlci
Co. will offer to its stockholders rights to subscribe for
540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
per share.
\

Public Service Co. of Colorado

Oct. 8 it
of

bank loans and for

★ Long Island Lighting Co. (12/5)
ViV
Oct.; 17 it was announced company plans to issue and
sell $20,000,000 of
30-year first mortgage bonds. Proceeds

Sept. 12 it

—To

bank loans and for construction
program.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; W. C. Langley & Co.; Blyth & Co., Inc. and The First Boston
Corp.
(jointly); Blair & Co. Incorporated and Baxter, Williams
&

repay

Co.

.(jointly); Smith, Barney & Co.

to be received

Dec. 5.

Bids—Expected

Niagara

...

(1/15)

company

reported that the company plans the
issqand sale of between
$18,000,000 and $20,000,000 first
mortgage bonds due 1987.
Proceeds—For reduction of
bank loans and
construction program. Underwriter—To

vote

Northern Natural

Inc.

(11/13)

Halsey, Stuart & Co. Inc.; Salomon

was announced

financing for
—

For

1956

construction

was

Offshore
Nov.

one

pany
-

Commission
364-mile

ing
real

estate

development of branch

gional shopping centers.
& Co. and Lehman

companies

stores

and

re¬

Underwriters—Goldman, Sachs

Brothers, New York.

plans to finance

(costing

Its

about

Gathering Corp., Houston, Texas

for

submarine

the State of

that this company may under¬

company

program

Underwriter—To

Public Service Co. of

Indiana, Inc.

July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly). Offering postponed.
Public

Service

Sept. 18 it

Electric

& Gas

Co.

announced company plans to issue and
sell 1,000,000 additional shares of common stock (no
par) early in December. Proceeds—To repay bank loan3
was

and for new construction.

Underwriters—Morgan Stan¬
ley & Co., Drexel & Co., and Glore, Forgan & Co.

★ Puget Sound National Bank of Tacoma

Gas Co.

reported

Oct. 18 it
on

announced stockholders will vote Nov. 14

was

approving

new

share for each

proposed offering of 25,000 additional
capital stock on the basis of one new

three shares held.

Proceeds—To increase

Price—$30
capital and surplus.

system

certificate
gas

per

share.

company

offered

Ry.

not

exceeding

$61,600,000 of

50-year income 5% debentures, series A, due Jan. 1, 2006,

necessity to build a
pipeline off-shore the coast of

154,000

common

stock

(no

par),

and

cash

equivalent to the unpaid portion of the preferred divi¬

Mississippi. It is estimated that this gather¬
approximately $150,000,000. Type

change for its 616,000 shares of $100 par value 5% pre¬

the

Sabine

River

the

Gulf

Coast

will cost

financing has not yet been determined, but tentative
olans call for private sale of first
mortgage bonds and
public offer of about $40.00^,000 of securities (probably
notes, convertible into preferred stock at maturity, ana
stock).

New York.

Sept.

common

Louis-San Francisco

St.

18, 1955, David C. Bintliff, Pres., announced com¬
has filed an application with the Federal Power

Louisiana from

May Department Stores Co.

Proceeds

19 it

construction.,

Bros. & Hutzler.

take

July

new

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. Bids—«
Expected to be received early in 1957.
'
-

Dec. 4 will

tne.

Bids will be received
by this company on or about Nov.
13 for the purchase from
it of $7,695,009 equipment trust
Certificates to mature in 15 equal annual instalments.

July 19 it

$40,000,000)
through issuance of debentures and treasury funds in
latter part of year.
Underwriter—Probably Blyth & Co.,

—Expected to be received about Jan.
15, 1957.

bidders:

The stockholders

approving this issue. Proceeds—For construction

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
& Co. (jointly).

"(jointly); Salomon Bros. & Hutzler;
The First Boston
Corp., and Glore, Forgan & Co. (joint¬
ly);; White, Weld & Co. and Shields & Co.
(jointly).-Bids

Probable

program.

be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities
Corp. and
Eastman Dillon. Union Securities
& Co.
(jointly); Kuhn,
Loeb & Co.;
Blyth & Co., Inc.; Merrill Lynch,
Pierce,
Fenner & Beane, Kidder,
Peabody & Co. and Harriman

★ Louisville & Nashville RR.

Machold, President, announced that the
plans to sell in the near future $50,000,000 of

convertible debentures;

was

Co.

Power Corp.

Oct. 17, Earle J.

ance

Ripley &

Mohawk

Louisiana Power &
LigHt Co.
Oct. 4 it

was announced company plans to issue and
$5,000,000 of first mortgage bonds. Underwriter—
To
be determined by competitive
bidding. Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb &
Co., Leh¬
man Brothers and
Salomon Bros. & Hutzler (jointly);
Eastman Dillon, UnioirSecurities & Co. and
White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane.

sell

was reported company plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds—To repay

be determined

.•

(EST)
Y., for

May 4 it

...

(11/1)

Co.

Underwriter—The First Boston Corp., New York.

Pittsburgh A Lake Erie RR.

the purchase from it of $7,305,000 equipment trust certi¬
ficates to be dated Nov. 15, 1956 and mature in 15 equal
annual instalments. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabodv &

now

—

appropriate type of long-term borrow¬
be insurance loans, long-term bank
convertible debentures or straight deben¬
it

Bids will be received by the company up to noon
on'Nov. 1 at 466 Lexington Ave., New York 17, N.

—

the most

whether

tures.

England Power Co.
it

borrowing,
'

plans to issue*
reported company plans to issue and sell
-and sell $10,000,000 of first mortgage bonds
75,000 additional shares of
early in
common stock.
Underwriter
1957.- Underwriters
To
be
determined
by competi—White & Co., St.
-Louis, Mo. " Offices
Chicago and '-.. :ve bidding.
Probable bidders:
Halsey, Stuart & Co
Bloomington, 111. •
'
; r
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
man Dillon, Union Securities & Co. and
Jersey Central Power & Light Co.
Wood, Struthers
& Co.
Sept. 12, it was announced
(jointly); Lehman Brothers; The First Boston
company plans to issue and/ :
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
sell'$8,000,000 of first mortgage bonds. Underwriter—
Fenner & Beane, Kidder, Peabody & Co. and
To be
determined by competitive
White,
bidding. Probable, :
Weld
& Co, (jointly), r \
bidders: Halsey, Stuart & Co.
\
Inc.,; Kidder, Peaoody &
Co.pThe First Boston Corp.; White, Weld &
New England Telephone & Telegraph Co.
Co.f East¬
(1/8)
man
Dillon, Union Securities & Co., Salomon Bros. &
Oct. 16 it was announced that the company plans to issue
Hutzler .and. Merrill
Lynch, Pierce, Fenner
Beane
and sell $35,000,000 of 29-year debentures. Proceeds—
(jointly).
To repay temporary borrowings. Underwriter — To be
determined by competitive bidding.
Libby, McNeill & Libby
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; MorOct. 15 it was reported that the
company is said to be
gan Stanley & Co. Bids — Expected to be received on
considering new financing in the neighborhood of be¬
Jan. 8, 1957. •
tween $15,000,000 to
'
'
$20,000,000. Underwriter—May be
Glore, Forgan & Co., New York.
New Jersey Power & Light Co.
:
"

Sept. 26 it

of first

was indicated that the company next year
give consideration to refunding its $75,000,000 of
short-term bank loans. After review, the company will

competitive bidding.

Securities &

company

Phillips Petroleum Co.

°robable bidders: Halsey. Stuart & Co. Inc.: Kuhn, Loeb
& Co., Salomon firos. & Hutzler, Eastman
:

$6,000,000

first mortgage bond issue
by the resultant company, the
aame of which has not as
yet been determined. Under¬
—

Co.

plans to issue and
mortgage bonds. Underwriter—
be determined by competitive bidding.
Probable
bidders: Halsey? Stuart & Co. Inc.;'Merrill Lynch, Pierce,
.Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.
sell

its subsidiaries, Essex County Electric Co., Lowell Elec¬
^o.

Electric

announced

was

?i-Yf

tric

approximately $5,& Co.,

Sept. 12 it

Jan. 3, 1956, it was announced
company plans to merge

Underwriter—Probably Kidder, Peabody

(Del.)

place later this

its

tal stock (par $16) on the basis of one new share for each
10 shares held. Price—$50
per share. Proceeds—To in¬

announced that
company plans to acquire

was

•

SEC preparatory to

(11/5)

stockholders of record Oct. 24, 1956 the right to subscribe
or before Dec. 3 for
100,000 additional shares of capi¬

participation with American Telephone & Tele¬
graph Co. in a proposed
$36,700,000 California-to-Hawaii
cable and, if approved
by the directors on Aug. 16, will
be -probably be financed
by a debenture issue. Hawaiian

•

Bank

April 9, Walter E. Seibert, President, announced that
company will soon file a registration statement with the

crease

15%

500,000.

announced

esti¬

Fort Lee, N. J.

Pan Cuba Oil & Metals Corp.

Underwriter

City Bank of Cleveland, Ohio

was

Irving Rosenthal, President, announced that
company plans to purchase another amusement park and :
merge the two and then sell stock to public.

Hawaiian Telephone Co.
a

National

Oct. 8 it

project to cost

Aug. 21,

the

—Morgan Stanley & Co., New "korK.

approximately
tpar $5) early

power

Palisades Amusement Park,

plans to offer 263,400

Proceeds—For capital and surplus account.

common

$60,000,000 on a revolving bank loan which will be
through the sale of bonds to institutional in¬
as the general
public. Proceeds—To pay,

vestors as well

Detroit* (11/1)

announced

reported company plans to sell about $32,organizing companies and
are expected to be made to borrow

was

common stock to the

reduced

heic^ as of
Nov. 1, 1956; rights to expire on Nov. 21.
Price—Some¬
what below market price prevailing at time of

tnen

Corp.

held.

July 30 it

Underwriter

company.

that arrangements

Underwriter—To '

additional shares of capital stock to stockholders
basis of one new share for each" 10 shares

vested

will

President, announced

the basis of

holding

Pacific Northwest Power Co.

Probable bidders:

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

*orx.

plans to
new

going
647,000 additional shares
1957

Securities

Business—A

Aug. 13 it
000,000 of

offering.

General Public

has been authorized
Commission to issue and.
of Oklahoma
$20,000,000 of its capital

Oklahoma
the State

($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬

(12/4)

construction program.
be determined by competitive
bidding.

held.

12, A.
stockholders

Oklahoma City, Okla.

announced company

stock

Bell Telephone Co.

Proceeds—For

Attorney General of
States, following reclassification of me shares

Sept.

the

sell in

Sept. 24 the directors authorized the company to issue
and sell $30,000,000 35-year
debentures, due Dec. 1, 19^1.

General Aniline & Film
Corp.
Sept. 21 it was announced that the
ol

was

stockholders

2,983,576

July 26 it

or early in
1957.
Company presently plans to issue and sell $22,000,000 of

indebtedness trom $35,000,000 to
$60,000,000 and to in¬
crease
the
authorized
common
stock
from
5,000,000
shares to 10,000,000 shares.
Underwriter—Eastman Dillon,

the United

is considering the

pected to be received until December

Food Fair

Oklahoma Corp.,

that company

reported

$10,000,000 first mortgage bonds due 1986. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; White, Weld &
Co.: Blyth & Co., Inc.; Kidder,
Peabody & Co. and Drexel
& Co. (jointly); The First Boston
Corp. Bids—Not ex¬

Probable bidders: Halsey, Stuart &
Inc.; Merrill Lynch, Pierce,' Fenner & Beane and
Kidder, Peabody & Co. (jointly); The First Boston
Corp.;
Blyth & Co., Inc.; White, Weld &
Co.; Lehman Brothers.
—

was

sale of

mortgage

Co.

Bias

z it

Underwriter,—Salomon Bros. & Hutzler,

dend

ferred

tures,

which has been declared payable

stock,

series A,

one-quarter share

dividends of $2.50 per

in 1956, in ex¬

the basis of $100 of deben¬

of common stock and unpaid

preferrec^ share in exchange for
Continued

on page

(1784)

Continued jrom page 43

1956, unless extended. Dealer-Manager

—

by competitive bidding.
Probable; bidders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
Co.; Equitable Securities Corp. and Drexel & Co.

rities &

Dil¬

Eastman

Inc.

•

plans longterm debt financing 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.
•

Sinclair

Oil

Corp.

company

shares of

(11/15)

basis

Price

offered

$100 of debentures
To

stockholders

each

for

nine

Co.

and

Lynch, Pierce, Fenner

& Beane,

(with
for

'-"i

Corp., San Antonio, Texas

working
Oct.

of New York.

additional

1,000,000

capital

9 it

will

Eastern

require

1957, one

Corp. (12/10-21)
plans to issue and sell, subject

Jan. 30 it

Counties

Gas

Co.

reported company

was

in the Fall offer

may

$t5,000,000 of first mortgage bonds. Underwriter—To be
by competitive bidding. Probable bidders:
Kalsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Union

determined

Oct.

River in Alabama.

Trust
of

one

Co.,

Los Angeles,
Oct.

record

Calif.

offered

were

increase

Proceeds—To

Underwriters

Blyth

—

five shares

each

Co.,

held.

capital

Inc.

and

—

the

June

29,

issuance

Underwriter—May be

States

Rubber

convertible

Continued from page 8

Co.

planned late in October. Price—Expected to be around
$7.50 per share.
Proceeds — To selling stockholders.
Underwriters
Cruttenden & Co., Chicago, 111., The

Co.

Humphreys,

Transportation

Sept. 19, it was reported public offering of an issue of
619,776 shares of class A common stock (par $1) was

Frank,

Meyer & Fox, both of Los Angeles, Calif.
United

Brothers

(10/29-11/2)

surplus.

and

Watson

•

Price—$35

Stern,

announced

was

new

cost about

share for

new

share.

per

proposed

before Oct. 26; 1956 for 114,000
additional shares of capital stock (par $10) on the basis

Southern Electric Generating Co.
K.ay 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬
ties. Proceeds—Together with other funds, to construct
ana operate a $150,000,000 steam electric
generating plant

the Coosa

right to subscribe

Fenner & Beane.

Bank

stockholders

company proposes to finance
construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.

conditions, $40,000,000 of debentures due 1976.
Proceeds—For expansion program. Underwriter—Dillon,
Read & Co. Inc., New York.

California

and secondary rights,

further right to purchase

Washington Gas Light Co.
June

to market

Southern

per

subscribed for through exerthe stockholders
until Nov. 30,
additional share at $22.
every

would receive

Transmission

announced

was

For

of primary

,;cise

further expansion.

for

Price—$20

privilege^).

To retire short-term bank loans and

—7

working

others.

common

Texas

both

the

that

announced

was

held

share for each seven shares

new

oversubscription

,an

capital.; Underwriter — None.
However,
Atlas Corp., which owns about 17% of the common stock
outstanding, will subscribe for any stock not taken by

stock, recently authorized by the di¬
will provide the company with the additional

rectors,

Merrill

Underwriter—Dillon, Read &
.

proposes

now

company

common

share. Proceeds

shares of

held.

Oil

Texam

Oct.

the

;

basis.

l-for-14

its

at the rate of one

Proceeds—

Co., New York.

supplied by amendment. Proceeds—For
capital expenditures. Underwriters — Smith, Barney &
—

stock

common

For construction program.

the

announced

was

stockholders the right to subscribe
for 186.500 additional shares of common stock (par $2.50)

bonds and to offer to stockholders 292,000 additional

gage

Disney Publications, Burbank, Calif.

offer

it was announced company plans to issue and
sell in February or March, 1957, $5,000,000 of first mort¬

was announced company plans to file today a
registration statement-covering not to exceed $170,593,-

of debentures

Oct.

Co.

Service

Underwriter—Kuhn,

rata to common stockholders.
Co., New Yoik.

pro

Loeb &

Walt

Public

Southwestern

Aug.

Oct. 25 it
900

Goldman, Sachs & Co. (jointly); Blyth & Co.,
and
Kidder, .Peabody & Co.
(jointly); Morgan

Stanley & Co.

reported that the

was

Co.

and

Inc.

Seiberling Rubber Co.
10

brothers; Harriman Ripley

Lehman

(jointly);

lon, Union Securities & Co., New York. Exchange Agent
—The Chase Manhattan Bank, New York.
Sent.

possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added that, if
convertible debentures are issued, they will be offered

determined

each 5% preferred share. The offer will expire on Dec. 31,

25, 1956

The Commercial and Financial ChronicleThursday, October

—

First

Chairman, stated that

Jr.,

debentures

one

Omaha,.

Corn..

several

Broad Street, New York 4, N. Y.
Also
Pan American World Airways.

Co.

Trust

available is

Lincoln, Neb.;

Wachob

and

Neb.

Bender
f

report

Dealer-Broker Investment

Broadway,

Recommendations & Literature
ment

Rico—Financial

facts

Bank

Rico, San Juan, P. R.

of Puerto

Rails—^Analysis
11

Wall

price

for

1956—Government

trends—Francis

Brochure

—

6, N.

Marine

EVENTS
In

Co., 60

York 4,

Street, New

Beaver

Pont

Field

N. Y.

Limited,

Hastings

West

821

Vancouver

Street,

Oct.

Co.,

Potomac

Electric

Corporation,
6, D. C.

Westinghouse Research
*

Power

Company

Connecticut

1346

Study

—

Avenue,

—

Springs.

the El Mirador Hotel.
Nov. 14, 1956

(New York City)

Association

Limited—Analysis—Ross, Knowles & Co.,
.Ltd., 25 Adelaide Street, West, Toronto 1, Ont., Canada.

(Palm

Washington

Canada

Roe

1956

National Security Traders As»ociation Annual
Convention at

Capital Reserve

W.,

24-27,

Calif.)

C.,

Canada.
du

Investment

Corporation, 200 Pershing Avenue, Waukegan, 111.

Permo Gas & Oil Limited—Analysis—C. M. Oliver & Company,

Develop¬

Laboratories, Churchill Borough, Pittsburgh 35, Pa.

•

York

Pennsylvania Salt Manufacturing Company—Report—H. Hentz

Street, New York 5, N. Y.

Westinghouse Research

New

Outboard Marine Corporation—Review and outlook—Outboard
&

Puerto

COMING

Neptune Meter Company—Analysis—J. R. Williston & Co., 115

of Stock Exchange
meeting of Board of Gov-'

Firms

ernors.

American

Steel

Foundries—Analysis—American

Institute

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

Management, 125 East 38th Street, New York 16, N. Y.
American Vitrified Products
ben

Also

available

Glass

Co.

memorandum

Union

Co.—Memorandum—Merrill, Tur-

Co., Union Commerce Building, Cleveland
on

14,

American

Street,

New

Ycrk

■

& Co.,

Becker

Baker

Broadway, New York 38, N. Y.

are

data

Emhart

Co.,

Also in the

AZUSA, Calif. —.. William H.
Stephenson has joined the staff of
Harry Pon, 711 North Azusa Ave.
He was previously with Columbia

Co.,

Harold

Incorporated,

Santa

same

formerly
& Co.,

Company

Analysis — Singer, Deane
Building, Pittsburgh 19, Pa.

King

filiated

—

Street,

Report

West,

—

Hanseatic

Toronto

become

Co., 9640

with

Daniel

was

Weston

120

Broadway, New York
analysis of the Bond Market.

Aviation—Report—Thomson

maker, Inc.,
120

Ont.,

McKinnon,

Circle Tower, Indianapolis 4,

HILLS,

Calif.
is

Mehuron

with

now

Hogle

Camden Drive. He

—

af¬

Co.,

v;;:

}•;'

v; '•

annual convention

America

the .Hollywood

Company.
Davies

Roanoke

—

New

Henry

York

cocktail

annual

party

In
&

the

past

with Bache & Co.,

9th National

Staff

Jan. 18, 1957

was

Herrick

Rice

the

Southern

(Chicago, 111.)

Bankers

April 21-23, 1957
Texas

associ¬

Dewey, King & Johnson,
Mrs. Her¬

formerly with Barrett
Herrick & Co., Inc. in New York.

Group

Bankers

Association

(Dallas, Tex.)
of
Investment

Association

meeting

the

Statler

annual

Hilton

Hotel.

was

Nov.

Mejia.

and

Conference.
Mrs.

—

now

Md.j-

11th National Instalment Credit

King

1016 Baltimore Avenue.

rick

(Baltimore,

Hotel.'

;o The Financial Chronicle)

Association*

Cre#t* ^nferenee.t

Winter Dinner

American

Mo.

Bankers

■

(Chicago, 111.)

Mar. 18-20, 1957

CITY,

3-6, 1957

(Hot Springs, Va.)

National Security Traders Asso¬

(Special to

ST.

Company, 317

Tke

Jr.

ciation Annual Convention.

Financial Chronicle)

LOUIS.

Schultz,

Mo.

—

now

Ernst

with

Edwin Ehlert

Brown

Edwin Ehlert

Brothers Harriman & Co.
11

the

age

retirement

Westheimer Co. Adds

Dunne

passed

62.

was

away

Prior
a

Oct.

his

partner

Co., New York.

(Special to The Financial Chronicle)

Co.—Memorandum—Oppenheimer

CINCINNATI, Ohio—Thomas L.
Pogue has become associated with

Joins Slayton & Co.

Shu-

Ind.

(Special to The Financial Chronicle)

Co.- 25

Westheimer

OVIEDO, Fla.—Louis L. Day has
'

Walnut

Street,

become connected with Slbytbn &

New

Company; Inc. of St. LoiliS.r 4

Exchanges.

and

York

and

Company.
members' of
Cincinnati

Baltimore Security Traders-rAs^
sociation
22nd
Annual** "Mid-«.

1000 Baltimore

Avenue.

With Dewey,

meeting and
the

Club.

KANSAS CITY, Mo. — Warren
S.
Yukon
has
become
affiliated

Jewell

Seventy-first Street.

Wall

Beach Hotel.

1956-{New York CityJ

Jan. 14-16, 1957

Building.

ated with

MIAMI BEACH, Fla.—Theodore
W. Sewell is now associated with

Daniel F.

MINNEAPOLIS, Minn.

was

Joins Daniel Rice Co.

Products, Inc.—Report—Harris, Upham & Co.,
Broadway, New York 5, N. Y.

(Hollywood

Joins Brown Bros.

Starch

National-Supply

1956

Security Traders'Association of

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Edward
M. Jones is now with Cavendish

analysis of Security Banknote

National Homes Corporation—Analysis—Kiser, Cohn &
National

25-30,

Dec. 7,

X. Kapsner has been added to the
staff
of
R.
J.
Steichen
&
Co.,

Street, New York 5, N. Y.
,

Ball¬

Hotel Commodore.

American«Bankers

(Special to The Financial Chronicle)

Also available is
National

has

Boren

(Special to The Financial Chronicle)

Wisener and

Canada, Limited—Analysis—New York

Corporation,

dinner

Investment Bankers Association

—

Joins Cavendish Co.

Company.
Investors Syndicate of

Grand

the

Beach,. Fla.)'

(Special to The Financial C hronicle)

Calif.

(Special

Scribner,
^

With R. J. Steichen

KANSAS

with

Nov.

Staff

Boulevard.

Corporation—Analysis—John J. Keenan
Co., Incorporated, 639 South Spring Street, Los Angeles
Also available is

room,

Co., 640
Spring Street, members of
the New York and Los Angeles
Stock Exchanges. He was former¬
ly with J. Logan & Co.

dance

South

ciates.

Adjusteze

14, Calif.

New York cocktail party,

ANGELES, Calif.—George

and

formerly with Quincy Cass Asso¬

Canada.

Interstate

(New York City)

Security Traders Association of

W. McMullin has become affiliated

Bache Adds

428 North

—

Williams
with

BEVERLY

Company—Study—Straus, Blosser & Mc-

Limited,

LOS

Nov. 24, 1956

jlnc. J

Gerald

Dowell, 39 South La Salle Street, Chicago 3, 111.
Gladding, McBean & Co.—Bulletin—Lon Hughes
Organization,
376 Sutter
Street, San Francisco 8, Calif.
Trust

(Special tc The Financial Chronicle)

Union

With J., A. Hogle Co.

Mae—Analysis of Federal National Mortgage Associa¬
H. Tegtmeyer &
Co., 39 South La Salle Street,,
Chicago 3, 111.

Interprovincial Pipe Line Company

Inc.
.

HILLS,

Monica

Investing Corporation," *

tion—Wm.

Corporation

connected

Fannie

BEVERLY

Com-

corporated,

Ilagan

Germantown

the

Association

Fourth Annual

Philadelphia

with William R. Staats &

(Special tc The Financial Chronicle)

Street, New York 5,> N. Y.

General Merchandise

Company,

California.

Manufacturing Company—Analysis-^Loewi & Co. In225 East Mason Street, Milwaukee 2, Wis.

•

(Special to The Financial Chronicle)

Securities

bulletinv.
Whiting Corporation and Plastic Wire & Cable...

Douglas & Lomason—Report—General
80 Wall

(Special to The Financial Chronicle)

Boren Adds

•&

Company—Analysis—First California
300 Montgomery Street, San Francisco 20, Calif.

150

Traders

Corp.—Memorandum—A.

Harvester—Data—A mo tt,

Joins Wm. R. Staats

25 Broad

Utilities

pany,

Detroit

(Philadelphia, Pa.)

1956

17,

Investment

Conklin

Joins Harry Pon
1

•

Broadway, New York 4, N. Y.
Citizens

Materials Corp.—Bulletin—DeWitt

Nov.

Cricket Club.

6, N.

Dinner

Boeing Airplane Co.—Analysis—Stanley Heller & Co., 30 Pine
Street, New York 5, N. Y.
!

Burroughs

Chemical

707, New York

Window

Electronics Corporation—Analysis—A. C.
Allyn &
Co., 122 South La Salle Street, Chicago 3, 111.
Also availab'e
is an analysis of
Automatic Canteen Company of America,
Food Machinery & Chemical Corp., and R. C.
Donnelley &
Sons Company.

Paper Corp.—Memorandum—Hirsch

Broadway, Room

Ill

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

Ohio.

Amphenol

Bowater

Co.,

John T. Snyder
John

322
the

Stock

Engalls
passed
of

62.

Snyder,
partner
in
Snyder,
New
York,
away Oct.
13 at the age
.

Volume 184

Number 5580

The Commercial and Financial Chronicle

...

(1785)

Nucleonics Fund
Chemistry &

Nucleonics,

that

Funds' Sales

at the close of its first fiscal quar¬

ter

assets

net

securities

the

last,

31,

Aug.

total

75%

its

invested

were

Sales

By ROBERT R. RICH

companies.

The.report showed total net assets
of
$1,477,602
with
the
market
value of investments at $1,093, 969
and cash and receivables at $383,632. In a unique innovation share¬
holders
were
given
a
capsule

satisfy

their funds.

months

the

over

period of 1955, the highest

9-month

sales

volume

the

fund's'

the

estimates, newsprint capacity in the
1,409,000 tons and in Canada to 6,065,000

company

the

time, it

same

was

reported that the ratio of redemp¬
tions

decreased

sales

from

same

period last

17%

26%

reported

Analyzes
Super Oil Tanker
Fleet
Impact
If present

the

for

new

fleet of

tankers, the immediate ef¬
such a program would be
two-fold, according to a study of
the shipbuilding industry by the

super

fect

Investment
curities

gross

year.

plans materialize for

the construction of

Staff

absolutely
tion of

National

Research

"In the first

Se¬

Corporation.

place, it would be

that alIoca~

necessary

structural steel and

scarce

Net assets of Chemical
Fund, plates be made to shipbuilders,
.Inc., as of Sept. 30, 1956 amounted because at present material is in
to $129,269,345, equal to $16.26 per scarce
supply
and
prices
are
7,500,000 for Canada, a total of 9,725,000 for North America.
share compared with $100,277,860 high," the survey stated. Second¬
The most interesting aspect of the expansion program, Bullock
ly, it went op, "the release in or¬
V!or $15.39 per share on Sept. 30,
points out, is that, after many years of a dormant and diminishing
1955. The fund had 7,948,410. ders of a substantial amount of
proportion of the total North American industry, the U. S. segment
shares of . capital stock outstand- new tonnage would * materially
is now engaged in capacity increases which are
relatively greater : ln.?,
3P' ^56 compared improve profit margins without
tons for

Ave.

total

capacity

Securities

Hampton

1955,

United States amounted to

LOUIS, Mo. — Edward F.
Dolan, Jr. has become connected
Mid-Continent

nine

history, according to the
Sept. 30 quarterly report to stock¬

(Special, to The Financial Chronicle)

Corporation, 3520

first

increase of 47%

holders. At

"Perspective," just published by Calvin Bullock, Ltd,,
manager of assets exceeding $400,000,000.
Securities of newsprint
producers represent a large portion of the company's investment

ST.

with

the

for

$22,656,-

issue

for

000

Fund

record level of

sion programs over the next several
years, according to the October

With Mid-Continent Sec.
.

inability of North American newsprint producers
increasing demand has inaugurated ambitious expan¬

same

The apparent

Chemical

reached

1956,

Newsprint Capacity to Expand Sharply

description in the report of each
company in the portfolio.

National

Chemical, Axe

Elec¬

tronics Shares, Inc., reported

will

capacity of 7,474,000 tons, while by 1959 newsprint

expand

2,225,000

for

the

United

States

and

Investing for Income

than that of the Canadian mills.
For example,
capacity is expected to be 56% above 1955 levels

through

only

National Income Series

17%

mutual fund, the primary objec-

tive

which

provide

U. S. capacity increases

in the southern states from Texas

result

diversified group

discovery in

economically from the abundant

stocks selected

available

the

south.

eastward

that

1940

of bonds, preferred and common

because of their

S..V$3168 on
da*e las^ yea1*-

and

newsprint

mainly
partially the

are

could be

produced

recent

contributory factors to the
planned expansion in the south, Calvin Bullock says, have been
the
increasing demands brought about by the industrial and

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:

economic

growth

of that

area

well

the

rest

the U.

S.,

increased transportation costs from Canada and the stimulant of
higher prices, plus some nationalistic tendencies.

Referring to the Canadian producers, the Calvin Bullock study
National

Securities &

Research

Corporation

Established 1930
120

Broadway,

New York 5,

New York

Montreal

about

the

and '"conie:

factor

Fund

fund

ix/r

advance

the

prices

stock

industry—in other

j.l

the

newsprint

companies,
fact that the

evidence

n™

than

nnn

each

available

from
dealer.

Inc.

Periodic

since

investor

dependents

1956,

plan

fund's

remittance

holder

fixed

month.

ments

for

the

dollar

the

o& the

rate

the

examination

set

minimum

illustrates

approxi-

based

held

individual

its

flexible

Mr.

are

Anderson.

where only a part

less

her

value

needed

of present
for

the

earn-

current

monthly payments
than

instances

dividend

are

use,

set at

and

rate,

couege

most

six

one

aii

case

expenses.

an-

maid

salary.

And

her

cover

one

the

first; half

the

cor¬

automobile,
tile

agricultural and tex¬

industries."

Axe-Houghton's

million,
total

1956

three
the

nine

than: $5

ran

36%,

mutual

first

ahead

the

for

corresponding' pe¬
was reported by
the management. The total dollar
riod

1955,

volume

for

ending

Sept.

$18,820,500

three

the

this

quarters
year' was

against

$13,809,615
funds — Axe-

lest

year.
The
Houghton Fund A, Axe-Houghton
Fund B and Axe-Houghton Stock
Fund—also reported a 2,608 in¬

crease

the

number

share¬

holders during the past year.
total on Sept. 30, 1956, was

The

33,compared with 31,372 on
30, 1955.
Axe Science &
Electronics
Corporation,
which
980

Sept.

full-fledged

open-end
July, reshareholders
on

fund

late

ported
11,064
Sept. 30, bringing the total for all
E; W. Axe & Co.-managed

four

funds

45,044.

Whitehall Fund net assets were
$7,858,450

Sept.

30,

from

up
_

$7,124,420 at the start of the year
and $6,579,517 on Sept. 30, 1955.
Asset value was $12.06 a share, off
moderately from June 30 and Dec.
values. The fund said this refleeted the' influence both of tight
money conditions on bond and
Preferred stock prices and of generally lower common stock prices,
National Investors Corp. net as-

time, the couple is using the

shares in the first three quarters

pay-

one

dustry

Group's

classes,

accounts

$62,731,074 on Sept. 30,
comparing with $57,289,941 at the

start
on

Fund,

funds and infor

the

30,

Sept.

and $52,941,315
1955.
Sales of new

year,

period last year'
Colonial
on

Oct.

Fund's total net assets

1956

were

$35,835,481

largest amount invested under the

and the asset value per share

plan,

$20.96.

other

Group funds
in part
any

price

stable

sometimes

are

used

the vehicle from which

liquidation is made.

Over the

out

se¬

bookings
at hand
and could quote prices
that would
gain them a decent
last

months

the industry has been reaching an

This

compares

was

with total

net assets on Oct. 31, 1955 of $26,-

030,114 and

At the moment,
active with 44

the industry is
ships contracted for

Oct.

1, 1956, a much higher
than the 25 vessels at the

figure

beginning of 1956 and only 14
ships as of Jan. 1, 1955. The pro¬
posed program of the U. S. Gov¬
ernment and industry officials in¬

volving
tional

the building

of
around
60,000
capacity each is estimated to

tons
cost

approximately

Because

volved

$1.0 pillion.
long. period in¬
drawing up blueprints
the

in getting keels laid doWn, it
that building of the

and

addi¬

of 50

vessels

doubtful

proposed super tankers could start
in

volume

real

any

1957

the

before

mid-

earliest, according to

the study.

In vestment Trust

Assets Reach
.7 Billion
Net

assets

the

150

companies

of the

ciation

Investment

member

National

Asso¬

Companies
were
$9,732,167,000 on Sept. 30,
1956, a gain of $695,558,000 over
the year-end 1955 total of $9,036,609,000,

the

Association

has

an¬

nounced.

The 125 mutual fund companies'
net assets increased by $668,436,000

during

of 1956, to a

Sept.

the first nine months
total of $8,505,960,000

30.

Total

net

assets

207,000, compared with $1,199,085,000 at the end of 1955.
Investor purchases of new mu¬

per

share net asset

fund

tual

amounted

incorporated mutual fund

Business Shares

pro¬

viding diversified, managed investment in
Canada. For free

the first nine months of 1955. Pur¬
chases of new mutual fund shares

investors

during

the

.third

quarter of 1956 totaled $334,507,000, compared with $319,718,000 in
the second quarter and $349,907,000

the

first

quarter.

Continued

value of $18.73.

page

The

calvin

Company

anced

bullock

between

selected

Established 1894

EATON & HOWARD

BALANCED FUND

STOCK FUND

Balanced Investment Fund

prospectus mail this ad to

for

selected

for

supervises
bonds

upon

Managed by

portfolio bal¬
preferred stocks

stability, and common
growth possibilities.

Prospectus

ONE WALL STREET, NEW YORK 5

and

EATON

INCORPORATED

24 Federal Street

BOSTON

ESTABLISHED 1924

request

Lord, Abbott & Co.

Name-

New York

Chicago

—

Atlanta

—

HOWARD

stocks

Address-

Prospectuses from
Los Angeles

your

$1,004,132,000 for the first nine
months of 1956, 9.5% above the
$917,041,000 of new investment in

American
—A U. S.

closed-end company mem¬
bers on the same date were $1,226,the 25

of the

°f *956 was 47% above the same

While The Common Stock

profit.

plenty

last

sets totaled

outs for travel expenses.

with

principal—over the
in anticipation of
annuity which falls due at the
end of the period.
In the meanyears,

investment, best

serving investors' needs, according

ings

couple
has arranged that a higher than,
normal
percentage be paid out
regularly — even though it will
probably necessitate invasion of

share-

investments in the plan, which has

the

monthly

amount

in the account.

**./

0ther, Group sends checks to the

However, a unique
allows for pay-

excess

proportion

monthly checks are mailed to the
pianholders' daughter to provide

feature

income

mate
a

institutions

or
w*

Plan

available

provides

the

for

compared with

period of ' last year.
gains y%ere;j achieved
in
spite of reduced demand from the

to other individuals

shareholder's

Group's

can

lective

shrinking,-it noted.

made to the shareholder's bank, to

fund.

optional

Boston, Mass.

additional shares at asset

Payments under the plan

early in 1955, according to Herbert
R.
Anderson,
President of the

each

Berkeley Street

made

automatically rein-

value to further build the account,

Remittance

first

was

excess

vested

•

words,

$1,000,000 has been
placed under the Group Securities,

The Parker Corporation
200

sharp

Now Over Million

prmcp^

investment

New Mut. Fd. Plan

finable wi.hou*

your

over

pointed

could

These

common

mutual

fu^. whose

prospectus

be recalled

corporation

builders

responding

became

^eanlNCOME

Dow-Jones

our

confidence.

orpornted

study says, may be attributed to the simple
investing public, after wavering in the early postwar years as to
the soundness of newsprint equity values (undoubtedly with vivid
memories of the chaotic Thirties) decided in the last five years
that present earnings were actually conservative and would un¬
doubtedly improve from here on out due to the recognized growth

possible

«sk

character

stocks

paper

Montreal Indus¬

the

Intern. GROWTH of

the

that, in contrast to the sharp advance in
the past five years, the net income of the
companies (Abitibi, Consolidated Paper, Price Bros.,
Powell River) only increased 11%."

and

securities,

tual

for

newsprint equities

E*ab!1i19^»

:ome

similar

Index

75%

only

four combined

The

initsl

Exchange

versus

being

latter

"It will

Stock

175%

that

increasingly competitive position,
and as a consequence, pricing is
close
and
profit
margins - are

the

11%

sales and 15% in net earnings per

months

It will be noted that in the 1950-1955

in¬

average

approximately

ket action of their equities.

Industrials.

mu",al
portfolio

reported
of

crease

sales

trials,

panies

funds'

advanced

Investors

that

noted

points out that "the most interesting and most proiitable aspect
about the Canadian newsprint companies has been the stock mar¬
period

Incorporated

Chairman,
and
Williams,
President,
"the
portfolio com¬

question."
"The

Eberstadt,

Francis

are

of fast-growing pine trees

sources

e saPQe

compared to

increase for Canada.

These recent and planned

investment in

1958,

by
as

Russ

Building

SAN FRANCISCO

Investment Dealer or the above•

The Commercial and Financial Chronicle

(1786)

Continued jrom page

Redemptions of holdings by inber

companies

open-end mem-

$108,910,000,

were

below the $116,972,000 in the first

$118,207,000

and

quarter

the

For the first nine months

second.

of 1956, redemptions

totaled $342,089,000, slightly below the $350,049,000 of redemptions for the
comparable period of 1955.
Mutual fund
investors opened

During

21,731,502 to 22,099,704—the
highest total in history. The in¬
crease
for the quarter was 64%

has

number of shareholder ac-

asset value of $10.59 one year ago.

Fundathe fund
10,000 share¬

nearly

since

Dec.

31,

were

$357,318,554

value

per

and

was

net

asset

$16.17,

com¬

at the 1955

net

value

3.5%,

2,592,440 on Sept. 30, an increase
of 319,891 over the 2,272,549 accounts reported by the Association

flect the three-for-one stock split
of June> 1956-

Dow Jones Industrial Averages.

prices

ernment

Shares Gain

cent
the

ment

4.9%

with $417,827,June 30, 1956, and

$437,966,000,

5.6% at year-end

000,

the

measured

Mass.

—

Robert

Clark has been reelected to
ond

one-year

term

sec-

Chairman

of the Executive and Administra-

Commit-

tive

tees

the

creased

chips'

In-

Companies,

although it has been

Clark, ExVice-

Calvin

Bui-

these

three

year

term

the

Executive

Committee
the

155

companies

member

with

Associa-

investment

assets

Also elected to

serve

the 15-

member Executive Committee for

G?°^ D"

first

pur-

8.7%

gain

ly the
value

Fund's

net

and

asset

f-lf'^S-hoenkopf,
IV, Prosident, Niagara Shares Corporation,
George

Clark,
President,
Adams Express Co., and
Dwight
P. Robinson, Jr.,
Chairman, Massachusetts
elected at

Investors
an

Trust,

were

Executive Committee

meeting to
on

serve one-year terms
the Association's three-member

Administrative Committee.
Other members

tions

Executive

are:

George E. Clark, Hugh W. Long,
President, Fundamental Investors,
Inc.; James H. Orr, President, The

20
23

stone Custodian

Funds, Inc.; Hard-*
Stires, Vice-President, Scudder, Stevens & Clark Fund, Inc.;
Chauncey L. Waddell, Vice-President,
United. Funds,
Inc.;
and
S.

Williams,
Chemical Fund, Inc.

President,

principally

rate

interest

Investments

years.

companies

are

held in
in-

Shares of Over-the-Counter Se-

Fund, Inc., were first of-

the

June

The

current

$11.09

investing

1956,

public in
at $10.95 a share.
offering
price
is

share.

-3,597.

home

evident

(Special to The Financial Chronicle)

LINCOLN, Neb.—Elrey S. Munson has been added to the staff

Joins Bache Staff
(Special to The Financial Chronicle)

CHARLOTTE,
B.

White

has

with Bache &

N. C. —William

become

connected

Co., Johnston Bldg.

carriers

ratios

that

was

*■

they

for

the

full

year

able
"

■

better; the

appear

and the Santa Fe.

larger

North

Pacific

the

interest

for

forced

dividend

and

the

rates

Common
down

stock

80.6%

holdings were
of net_assets on

Sept. 30, as compared with 85.0%
beginning of the year. Hold¬
ings were increased moderately in
at the

the electrical and

electronics, food,
public
utility
and
retail trade
fields, and comparable reductions
w£re made in the

building, chemi¬

cal and railroad industries.

are

STATEN
Island

ISLAND, N. Y.—Staten

Investors,

formed
Street

with
to

Inc.

offices

engage

has
177

been
Broad

securities

business.

tne last

Prt-tax N.0.1.

.:'/«
!

Virginian Railway

Western

Maryland

Norfolk

John
Welch

State

J.
B.

Street.,

Powers

have

Morton

and

joined the
&

49.7

45.5

39.5

47.5

31.5

33.2

30.41

32.3

30.3

32.7

——

——-—

Bangor & Aroostook
Denver & Rio Grande West.

Chesapeake & Ohio..

;

—

Co., 131

1955

2
1

••

29.5

24.7

29.5

30.3

27.2

27.4

8
'

27.2

24.2

Southern Railway

24.0

26.1

.10

Pittsburgh & West Virginia !

23.0

22.6

*11

Louisville

21.6

21.8

21.4

23.4

Hudson!.——

•

Nashville——_

New York, Chicago & St. L.

......

14
12

■

Great Western-

19.7

23.6

14*

Air Line—______

19.7

20.0

15-

Atch., Topeka & Santa Fe—

18.6

21.6

Chicago
Seaboard

Company

Western

Pacific

Illinois
St.

—

——

Central

—,

Louis-San Francisco

Texas

„

Pacific—•

Union Pacific

Minneapolis

Class

Louis.—

St.

Great Northern

Missouri

Pacific

._—

16.0

18.8

•15.9

17.7

15.7*

16.8

15.6

18.4

15,6

16.5

15.4
15.2

15.0

17.9

24 * \

15.3

13.8

13.2

14.0

Average_T

13.4

15.0

Wabash

13.2

15.2

Gulf, Mobile & Ohio

12.5

15.2

Central of Georgia

12.3

11.7

Chicago, Rock Island & Pac.
Lehigh Valley

12.2

13.5

9.5

9.3

8.8

'8.4

8.7

10.0

Erie

RR.

■*

—

New York Central
Baltimore

Ohio

Coast Line

Pacific

Brenner,

8Mos. '56

Western

RR.

staff

Rankings

Year 1355

Boston

Benjamin

% of Gross Rev.

Eight Months 1956

Kansas City Southern..

Southern

Martin

„

Monon

—

Pittsburgh & Lake Erie

Delaware

Three With Morton
Mass.

previously

one place.
Standing pat in this 43 road sampling
City Southern, Union Pacific, Baltimore & Ohio and
five roaas showmin the following tabulation.; - *

(Special to The Financial Chronicle)
,

mentioned

advanced

Atlantic

BOSTON,

Louis,

Kansas

Northern Pacific

Staten Island Investors

St.

N, Central of Georgia and Pittsburgh & West Virginia, while
Hudson, Illinois Central and the Northern Pacific

each

Reading

higher.""

among

the Delaware &

invest¬

period
market

Minneapolis

the few in the "gain" column, moved up four
Two place gains were made by the Southern, Coast Line,

places.
L &

Such securities be¬

attractive

gains in ranking

and

being

during the
tightening money

of E> E- Henkle Investment Corn£any' Federal Securities Building,
t

similar

were made mostly by roads in
East—notably in the cases of the Erie, Lehigh
Valley, Reading and Bangor & Aroostook, but both the Missouri

the

markets

(Special to The Financial Chronicle)

E. E. Henkle Adds

heavy industry than with

relapses that have occurred

The

this

ment

category of investments,

fered

with

Pocahontas
'

abroad," the fund's chairman

came

over

different

43%

uncertainties

third quarter.

dustries. The electronics industry,
accounting for about 13% of assets, is the fund's largest single

wick

Francis

balance

The

indentified with

compared

rankings.

Seaboard

year.
The gradual
holding of fixed-in¬
come
bonds and prefered stocks
which your corporation initiated
some months ago," he told share¬
holders, "was continued in the

.^^SdiSg^;

highest

Colonial

Fund,
Inc.;
Harry
I.
Prankard, 2nd, President, Affili¬
ated Fund, Inc.; Cyril J. C.
Quinn,
V i c e-President, T r
i-Continental
Corporation; Dwight p7 Robinson4
,Jr.; S. L. Sholley, President Key-

industries

funds

curities

the Associa-

Committee

that

Investing

risen

had

buildup

«eTdiicnio0sVedr"the"COUnter SeCUH"
"anee

than

was largely due
enjoyed by the roads of the North

totaled

confidence

rafed^vestor?1^tartes F^ton" P^t ended "sept. 30,1956that it Is
! Howard ™£sted% coTpanfes" fnT'broad

Jr., President, Eaton
Inc.; John W. McCartin, VicePresident, Investors Mutual, Inc.;

notably better1 in
1955

This

are highlighted by compara¬
below, the 43 sample roads are
ranked
in order of their pre-tax margins for the first
eight
months of the present year.
The far right column shows their
corresponding ranking for the 1955 calendar year, and numerous

tive

"and the tightened
market seemed at
least temporarily to dampen and,
perhaps insome quarters, to cause
reappraisal of the high investment

invest-

was

two

three

The

prices of
the mid¬

domestic money

Securities

exclusively

territories

revenues

are

1955 ratio.

commented,

Fund, Inc., the only mutual fund
devoted

eastern

corresponding period of

conditions.

are

With

one

prices, but higher than
$21.71 at the year's start. It

eariler

Over-the-Counter

Street

assets

"Political

last year, or nearrate of growth as that

the

connec¬

exceptions, namely in the cases of the Missouri
Pacific and the Minneapolis & St. Louis, the only other roads in
this group of 43 used in the present sampling which were able to
equal or better their pre-tax, margins of 1955 are those of the
North and East, including in this group-the Virginian-of'the
Pocahontas District. The latter, strangely enough, was the Only

steel strike to effect sub¬

holders

1956

share,

per

months

the number of Accumulation Plan

over

same

shown

the

period.

The tabulation which follows gives further indication of these
To illustrate this, the pre-tax margins for the first eight

gain, the chairman stated. Share¬
holders totaled 19,622, a 13% in-^
crease
over
a
year
earlier, Mr.
Randolph said, pointing out that

necessary to

months

the

trends.

tribution of 74 cents from realized

increase,

by Diversified
Fund, Inc., during

nine

per

one-half

represented a 5% increase over
Sept. 30, 1955 asset value after
adding back the December dis¬

these

making

for

revenue

With a relatively higher level of gross
these roads have been better able to cope with the
sharp increase in expenses that has taken place this year.
.?

curities
the

13c per share—one cent
more per share
than in the same
period
in
1955.
Coincidentally,
this
dividend
increase
was ' an

nearly

$10,000,000,000.

this

gross

•

paid

Stock

equalled

when

Dividends
Growth

lock, Ltd., had
reelected

tion's

selective

earlier

been

reflected

carried

shifts are seen.
The Virginian, for instance, moved into first
Corp.'s
place, exchanging this position with the Pittsburgh & Lake Erie
$90,079,753 at,
and the Norfolk & Western and Western and Western Maryland
the quarter end, comparing with
also exchanged places, with the latter moving from fifth to fourth.
$81,646,781 at the beginning of the
This.shift was only relative, however, since both roads show a
year and $78,344,294 on Sept. 30,/
•decline in this measure as compared with 1955.
The drop was
1955.
Asset value was $22.11
a '
only less in the case of the Western Maryland. Also exchanging
share, slightly less than at June
adjacent places were the "Bangor" and the "Denver," and the
30, reflecting generally lower se¬

'blue

for

operating

revenues

revenues,

eliminated.

were

and

the

with

and the East which

Investors'

Broad

net

chases."

President of

Clark

those

Fundamental

northern

agricultural

investment
stocks of
Inc.,
were

depressed
securities during

steel

our econ-

market

stocks has

ecutive

the

vestment
Mr.

Robert

than

and

Industries,

by the road's

case

to the better level of

stantial increases in steel holdings.

has been contributed by new
developments, new products and
new
markets pioneered by such
companies. So far this year, earn¬
ings of growth stocks have in¬

ciation

Dresser

summer

omy

national Asso¬

Management of the fund took ad¬

by the

Much of the strength of

changes

vantage

1955.

common

pre-tax

gross

roads in the southern and western districts.

share over those paid in
corresponding nine months of

holdings,

their

comparison

per

cific Coal and Oil

Dow Jones In¬
In commenting,
Hugh W. Long, President of the
Fund, stated: 'This is an example
of how growth stocks can move
counter
to
the
general market.

To Posts in NAIC
,

market

cents

percentages

study of net income results for the first half of 1956
sampling of 25 representative roads, the performance of

those
r

portfolio and those of Southern
Pacific Company and Texas Pa¬

dustrial Average.

R. Clark Reelected
BOSTON,

stock

the

are

recently compiled tabula¬

As pointed out in this column in the
Aug. 16 issue in

paid

increase

measured

operating income plus Federal tax accrued for

each

tion with
from

measured by the

totaled

1956

—

added

net asset value per share increased
8.9%—from $11.52 on Dec. 31 to
$12.54 on Sept. 30—despite a 2.7%
decline

1955.

stock

common

dividends

Among

This compares

30.

net

period in

1955.

months of this year

ters

companies for invest¬
portfolios in the first nine T
1VTov*Lr**f
totaled $1,636,- -1*1 lTlclI Jvcl Ul LIJl
267,000 while sales from portfolio
Diversified Growth Stock Fund,
were $1,015,701,000.
jnc<> reported total net assets of
Cash, U. S. Government securi- $14,848,423 on Sept. 30, 1956 — a
ties and short-term corporate obgain of almost $2 million over the
ligations held by the 125 mutual total of $12,878,246 at the 1955
funds
totaled
$504,932,000,
or year-end.
5.9% of total net assets on Sept.
During this nine-month period,
open-end

by the
fund during the first three quar¬

Securities (excluding

U. S. Gov¬
securities) bought by the

of 2.7%,

Income

D. I. F. Growth

months earlier.

nine

decline

year

These

sum

compares

with

this

selection of leading roads for the first eight

through the net operating income before deducting Federal income
taxes from the latter.
For the purpose of calculation, this per¬
centage "profit margin" is obtained in each case by dividing the

The increase
per
share,

year-end.

asset

which amounts to

ma/gins.

pared with $320,148,570 and $15.63

Share outstanding and net asset
value have been adjusted to re-

member

end

months

1955.

On Sept. 30, 1956, total net assets
of
Fundamental
Investors

;

open- and closedcompanies reached

counts for both

added

Margins—Eight Months of 1956

Our attention has been directed to a

tion of the results of

Inc.,

Investors,

holders

net

According to Hugh

President

Long,

mental

time a year ago.

compared with

months.

three

accumulation plans, for
The net asset value per share
regular monthly or quarterly pur- on Sept. 30, 1956 was $11.15 which,
chase of mutual fund shares dur- together
with a special capital

gain distribution of 28 cents in
February, is equal to $11.43 per

Pre-Tax Operating

greater than that of the previous

^bppares with
$918,604,754 H1
C22 shareholders and 86,741,580
shares outstanding at the same

ing the first nine months of this
year, exceeding the 114,974 total
for the full year 1955.

By GERALD D. McKEEVER

from

126,408

The

Railroad Securities

third

Investors' shares outstanding rose

Massachusetts Investors Trust
reports for the three months ended Sept. 30, 1956 total net assets
of $1,037,626,857, representing 93,088,821 shares owned by 150,885

the

quarter
of
1956, the number of Fundamental

$1.03
Billion
^

share,

High Shs.

For Fundamental

Mutual Funds
vestors in the 125

Record

M. I. T. Assets

Thursday, October 25, 1956

...

—

Maine

Pennsylvania RR.

Chicago, Milw. St. Paul & P.
Delaware, Lackaw. & West.

8.6

9.8

7.9

8.4

7.5

10.0

7.3

13.1

6.9

9.4

7.5

7.0

6.8

6.6

35
38

•

40
41

3.8

Chicago & North Western—

def.

3.9

def.

3.5

; 44

Y., N. Haven & Hartford

Volume 184

Number 5580... The Commercial and Financial Chronicle

(1787)

Reissner Nominated NASD Board Chairman
of

man

the

Board

Governors

the

National Association

His election will take place.at

Securities

Dealers.

the Board

next January.

DIVIDEND

With United Investors
(Special to The Financial Chronicle)

WASHINGTON—Frank L. Reissner, President of Indianapolis
Bond & Share Corp., Indianapolis, Ind., has beerf
nominated Chair¬

DENVER, Colo.
Hipskind

with

has

—

Norman E,

become

connected

United

Investors, Inc., U. S.
National Bank Building, Mile
High

meeting of

' %

Center.

the past he was with

Rogers & Co.

NOTICES

United States Pipe and Foundry

18,

The United Gas

1956

declared

quarterly dividend of thirty cents (30£) per
share on the outstanding Common Stock of
this Company, payable December 15, 1956, to
stockholders of record on November 30, 1956.

The transfer books will remain open.

United States Pipe

(Special to The Financial Chronicle)

O'okiep Copper Company,

Pierce, Carrison, Wulbern, Inc., Barnett National Bank
Building.
\

Limited
/

Dividend No. 40
The

Board of Directors today declared a
dividend of twenty shillings per share on
the

Two With King Merritt

■

(Special to The Financial Chronicle) i

WEST, Fla. —Robert S.
Archer and Thelma M. Livermore
have become connected with King
Merritt & Co., Inc.

Two With Columbia Sees.
(Special to The Financial Chronicle)

staff

Holcomb

have

Columbia

'J--*

;

' !■ f

the

1956 to. stockholders of record
November 30, 1956.
A quarterly dividend of $1.06)4

§er
share
thedeclared
AM % Preferred
tock
has on
been
payable
January 2, 1957 to stockholders
of record November 30, 1956.

pay¬

Johns Hopkins, Treasurer

distribu¬

December 14,

1956 to the holders of record at the close of

Philadelphia* October .23,1956.

business

on December 7, 1956 of American
shares issued under the terms of the De¬

posit Agreement dated June 24, 1946. The
dividend will amount to approximately
$2.78 per share, subject, however, to any
change which may occur in the rate of
exchange for South Africa funds prior to
December 4, 1956. Union of South Africa
shareholders

tax

the

United States Lines

Company

rate

of 7.05% will be deducted.

joined

Securities

Company, Inc. of Florida,
Biscayne Boulevard.

able December 4, 1956.
The Directors authorized

non-resident

MIAMI, Fla.—John W. Hill and
the

Ordinary Shares of the Company

tion of the said dividend

KEY

By Order of the Board of Directors,
F. A. SCHECK, Secretary.

Common

Stock

New York, New York, October 24, 1956.

DIVIDEND

3839
.
v '

ti-j

The Board of Directors has authorized the

payment

DIVIDEND
Edward

H. Austin

Wallace

per

par

value $13.50 per share, has been
declared ..payable December 20,

Thompson has been added to

James

quarterly dividend of 50c
on the Common
Stock,

the staff of

Company

Foundry Company

and

JACKSONVILLE, Fla.—Chafles
M.

Improvement

DIVIDEND NOTICE

JOHN W. BRENNAN, Secretary & Treasurer

Pierce, Carrison Adds

NOTICES

Company

Birmingham, Ala., October
The Board of Directors this day

DIVIDEND

($.50)

NOTICES

;

pet

a
dividend of fifty' cdnts
share payable December 7,

1956, to holders
record November

ti. t'uuon

Common

Stock

16, 1956, who

that

date hold regularly issued Common Stock

($1.00 par) of this Company.

AMERICAN HAS

Mr.

Reissner, who will succeed Frank H. Hunter, partner,
.McKelvy & Co., Pittsburgh, entered the securities business in 1934
.after graduation from Butler University. He served three years
on
NASD's District Committee/No.
8 (Chicago), one year as
•Vice-Chairman. He also served a three-year term on the Executive
•Committee of the Central States Group.of the Investment Bankers
Association of America and presently is on the group's State
Legislation Committee.
Other nominees for NASD offices, who also will take office in

One
//

Jo M.

217th

Common Stock Dividend

and Extra Dividend

/A six cents

•

W. J. ROSE,

French, Vice-President, Blyth & Co., Inc., Los Angeles,
:

A regular quarterly dividend of
fifty cents (50tf) per share and
an
Extra dividend of forty-five
cents
(454)
per
share on the

Secretary

Stock

Capital

Company

the

have been declared this

October 24, 1956.

;

able

day, pay¬

December

10, 1956* to.
stockholders of record at the close

-Edward H.

Austin, partner, Austin, Hart & Parvin, San An¬
tonio, Texas, Vice-Chairman.
V
Earl K. Bassett, partner, W. E. Hutton & Co., New York,
.

CHAS. F. BRADLEY, Secretary
Broadway, New York 4, N. Y.

Dividend

Consecutive

a regular quarterly dividend of thirty($.36) per share on the
Common capital stock of the Company
issued and outstanding in the hands of the
public has been declared payable Decem¬
ber 10,1956, to the holders of record at
the close of business November 9,1956.
i

January, are:
Vice-Chairman.

THE TEXAS COMPANY

AND ELECTKICCOMPANY

of business

November 9, 1956-

regular quarterly dividend of
31%i per share on the 5% Con¬
vertible Preferred Stock has been
declared

payable December 1, 1956,)

stockholders of record Novem¬

ber 14, 1956.

Treasurer.

Wallace H.

INTERNATIONAL

Fulton, Washington, D. C., Executive Director.

The stock transfer books will

re¬

S. T. Crossland

HARVESTER

Vice President & Treasurer

With H. L. Jamieson Co.
^

(Specinl to The Financial Chronicle)

-LOS

ANGELES, Calif.

—

Wil->

COMPANY

Frank Knowlton Adds
(Special tc TheFinancial Chronicle)

OAKLAND, Calif.

James T.

—

October 18,

lyith H. L.; Turner

now

has

become

connected

close of business

the

December 14, 1956.

^DIVIDEND NOTICES

Secretary-Treasurer

Company have declared quarterly

record

14, 1956.

M. E. GRIFFIN,

dividend No. 167 of fifty cents

;

regular quarterly dividend of
share on the Common Stock

per

has'been declared payable Novem¬
ber 30, 1956, to stockholders of
record November

1956

The Directors of International Harvest¬

(50j£)
Jamieson Co., Inc., 6399 Wilshire with Frank Knowlton & Co., Bank per share on the common stock payable
January 15, 1957, to stockholders of
Boulevard.
of America Building.
liam H. Luther is

30^

main open.

GERARD

J. EGER, Secretary

600 FIFTH AVENUE
NEW YORK20,N.Y.

L
Sinclair

COMMON
STOCK

CORPORATION

DIVIDEND

Manufacturers of

No. 104

Aft

INTERNATIONAL
Common Stock

..■'Ceramic
Wall &:

AMERICAN

HARVESTER

ENCAUSTIC

n«

»»
ww

Tile

TILING

The Board of Directors of
**

I COMPANY, INC.

il
»«
ww

COMMON STOCK DIVIDENDS

Mtt
ww
WW

Declared October 17, 1953

WW
KS
ww

Company have declared quarterly

dividend

No.

153

dollar

one

LEROY

GERARD

J. SCHEUERMAN,

Payable November 29, 1956
Record Date November 15,1956

America's OLDEST Name in Tile

Wilmington, Delaware

s
I

COMPANY

:
■

Dividend No. 27

1956 to

THE SOUTHERN
Serving the

COMPANY SYSTEM

Southeast through:

Alabama Pow£r

Company

Georgia Power Company
Gulf Power Company

J
■

Mississippi Power Company

L. H.Jaeger,

Treasurer and Secretary

lhare;

NATURAL

GAS

Services,* Inc.

Birmingham, Alabama

Common Stock Dividend No. 71

A regular quarterly dividend ol 50-cents per share
been

declared

the

j
:
;

dividend of

3,000,000
Southern
value

U/4% (25f)

Railway

$29

Y.. October 23. 1958.

Preferred

Company
share

per

Stock

the

has today

of
par

been

declared, payable December 14, 1956, to

stockholders of record at the close of busi¬

pay-

ness

able December 13, 1956 to

■

Company,

stockholders of record

•

business

the

No-

|
I

1956.
fifty cents (50<)

6,491,000

H. D. .McHENRY,

Vice President and Secretary

thare.

par

value

stockholders

business November 15,

pay¬

30, 1956, to
stockholders of record Novem¬
ber 5. Checks will be mailed

from the Companys office in
Los Angeles, November 30.
f

October 19.1956

without

are

able November

Company has today been declared out of

......J!

per

p. C.

1......... ............n.

301/2 cents

per share
Common Stock
Southern Railway

surplus of net profits of the Company
for the fiscal year ended December 31,
1955, payable December 14, 1956, to

Dated: October 20, 1956.

STOCK,

Dividend No. 36

15,

the

vember 30,1956.
...

November

A dividend of
on1

share;

The above dividends
New York. N.

Natural Gas

per

DIVIDEND NOTICE

|
J

has

Company

26V2 cents

4.88% SERIES

Common Stock of Southern

•

Southern

Railway

•

Dividend No. 4

CUMULATIVE PREFERRED

holders of record at the close
of business on November 5,1956.

per

SOUTHERN

4.08% SERIES

(INCORPORATED)

CUMULATIVE PREFERRED STOCK,

A Great Name in Oil

J. EGER, Secretary

Southern

■

SOUTHERN

quarterly dividend of
25 cents per share on the out¬
standing shares of common
stock of the Company, payable

following quarterly dividends:

4.24% SERIES

The Board of Directors has de¬

(

authorized, the payment of the

SINCLAIR

CUMULATIVE PREFERRED STOCK,

•

DIVIDENDS

25V2 cents

December

California
Company

The Board of Directors has

November 14, 1956.

ness

November 5, 1956.

COMPANY

ber 15, 1956 to stockholders
of record at' the close of busi¬

central and south west

clared

Edison

«8W

(

Southern

Secretary

w«

THE

and

seventy-five cents ($1.75) per share on
the preferred stock payable December
1, 1956, to stockholders of record at the
close of business

a regu¬

csa

corporation

The Directors of International Harvest¬

holders of record October 31, 1956.

Quarterly—15< per share
Extra—10* per share

Central

Corporation at its
meeting held on October .18, 1956,
declared a regular quarterly divi¬
dend of forty cents (40c) per share
on
the Corporation's Common
Stock. This dividend is payable
N ovember
30,
1956, to stocks
and South West

17, 1956

quarterly dividend of 75
share was declared
on
the Corporation's Com¬
mon Stock, payable Decem¬
cents per

COMPANY

Floor

On October

lar

Dividend

•

record

the

1956.'

J. J. MAHER,

close
•

of
,

Secretary

hale,

Treasurer
'

The Commercial and Financial Chronicle..,

43'(1788)

"population 205, today received
approval of a loan of $55,000
with which to build a sanitary
sewer
system.
The
town at

BUSINESS BUZZ

Washington
WASHINGTON, D. C.—There
Is nothing new about the use of :

rainbow chasing as a device to y

help support the artisans of the
political trade in this great big
government. Both parties love
method of helping to con
voting customers. You set

this
the

"Commission"

a
•

"Admin-

jTJL §

Capital

has no sewer system.
Septic tanks and cesspools con¬

present

•

stitute

Behind-the-Scene Interpretations
(ram the Nation's

•

istration" out to hunt the pot of

gold at the end of the rainbow.
"peepul" are stirred and
excited while the hunt is on.
Preside n't Eisenhower has

the money under

stitute the town's water

reimburse

provided

Credit Corp., for its cost of buy¬
ing and storing these surpluses
then so happily gotten out of the

wrinkle to this

new

is to set

That

team out to hunt for the pot

gold

way.

the hunt

Back

"farm

had

cannot

There

that

(whether
name

"farm

tremendous
popularity. There was a
chemurgic council"®

run

1930's

the

chemurgy"

was

its

was

exact

remembered).'

blOc in Congress.

which,

vast

life

that

was *

idea, it
for

uses

were

for

insecure

eration

the

surpluses

commodities

ingenuity

industrial

find

the

this

of farm
making

that,

gen-

both

politicos

cult

■

tivities

Agriculture,

sur-

are

}

the

projects of the
bhemurgic^bloc of the.-.1930's
was to get a law passed requir¬
ing the miifing of alcohol with
gasoline in motor fuel
con¬
.

sumed in the United States. The

controversy over this was
really Warm at the time. The
farm crowd wanted it; the oil
industry
did
not.
Different
groups had "experts" to get out
reports. - Some "experts" found

tremendous
tance of

growth
beans

soy

in
as

cultural and national

impor¬
an agri¬
of

source

wealth.

real

industry

cotton,

vital

the

part

and

uses

Orleans

New

providing

new

adaptations

new

for

uses

cotton.

Without

the

work of the laboratory, the de¬
,

velopment

synthetic

fibres

might have pushed cotton to
the point where it was a minor
As it is, cotton has about

crop.

Set Up Administration

held

its

own

national

con¬

Finally, the Congress passed

sumption, in terms of absolute

law which

use

in 1938 set up

"Agricultural Research Admin¬
istration"
whose
special
job
was to do the scientific ground¬
necessary

hands

Older

was

with

will

recall

which

this

the

outfit

set up in business. Henry
Wallace
was
Secretary of

Agriculture.

There

fully-

was a

press

relative

enlarged

On the

Attended, carefully-staged

the

population and

this

other

business

last

had

been

assert
so

hand, the
would

that

men

their

the

results

spectacular

dissolve the farm surplus prob¬
lem.
research

that

slow

set

these

surpluses.

chief

brains

ministration"
the

press

to set

outlets

few

this

to
for

of the

new

"Ad¬

exhibited at

were

conference.

The

im-

pression

was

left that the

sur¬

the

way

plus problem

was

War Intervened

A couple of years

less,

there

the wonderful

later,

metallurgy

which

came

the

war

v^which resulted in destroying the

have

(1)

achieved in the last generation.
the

other

hand,

the

stage
>

expectations of such comthings as alchemy,

parable
into

could

lead

gold,

the

chimera

loans and direct subsidies to im¬

prove

the

Eisenhower Commission

government

ap¬

into

products

new

has

for

uses

gone

for

redevelopment pro¬
"They flank the ap¬
proach
to
the
State
Capitol
building," explained the official
release..
I
grams.

not

one way or another thisMubject has been under study in one
place or another for a century.
Into this background Presi¬
dent Eisenhower has appointed
a
"Commission" to study ways

adapting

of farm

new

industrial

uates decided to enter
ment

■»

otherwise

excites talk

rainbow.

auto fuel.

better promise for the fu¬
ture than other professions.

terms

and

loans,

tional
the

nation's

might be amused that
bagasse is useful for toilet facil¬
for

cats,

but

for

use

cats,

spent,

are

known

of bagasse as litter

whether these
were

and

Community
provided sub¬

have in recent years

Therefore, Mr. Gellerman

con¬

cluded, it would be well for
ents

educators

and

par¬

acquaint
themselves with the many advan¬
tages that are afforded young peo-.
ple in the financial field, through
which every segment of America's
tremendous industrial growth po¬
tential may be reached.

Responsibility"

interest rates

PALM

BEACH,

become connected with
Bros.
&
Co., 316 South

Sutro

County,
with

Road.-

Thomson

of this particu¬

loans,

rules

the

cal.

the sponsors

projects." The
Their

cash

Full text of Commercial and Financial Chronicle : October 25, 1956, Vol. 184, No. 5580

FRASER