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MICHIGAN
1955
23
OCT
ESTABLISHED 1S39
adimhistratioh
L1BRARI
■
Reg. U. 8. Pat. Office
Volume
New York 7,
Number 5476
182
EDITORIAL
I9S5—A Year oi Great
Economics of Eisenhower
We See It
As
There is little
reason
Progress ior Gas Industry
Dynamic Conservatism
to doubt that the Demo¬
one
party intends to harp on "90% parity" as
of
means
tions.
is
This
"flexible"
be
to
support
a
"rigid"
if leading
support,
not
Washington, D. C.
a
country, the
lie in this business of
is
debate centers
government should intervene in economic decision-making.
Asserts foundation stone of Eisenhower economic policy
rigidity rather than flexibil¬
decision-making by indi¬
"a deep faith in economic
Mentions features of "Eisenhower conserva¬
ity. Both bow down to worship the "parity" con¬
cept, and have right along. It would not be
viduals."
particularly surprising if before November of
next year rolls around both parties will be ad¬
vocates of "rigidity," although quite likely using
of incentive and reward and the
different
tism,"
servative" is
arguments over this matter
than
one
this
civilization and
a
was a
the
and
Dr. Gabriel
in all areas
the
since
kind
nonsense.
have been a
preoccupation
of
man¬
history.
of
dawn
Economists, of necessity, are in the bread business in
this broad sense, though they fully realize that the
utilitarian calculus of supply and demand is far, indeed,
widely, and in so many
quarters so unquestioningly, accepted, it is all
the more desirable that it be scrutinized again
Continued
unworthy
♦An
32
address
California, San
on
page
by Mr. Hauge before the Commonwealth
Francisco, Cal., Oct. 1-4, 1955.
During 1955
attempted
have
F. M. Banks
and
to accent the mod¬
ernity of our service and
Continued
HAnover 2-3700
""♦An"
address
Gas
American
Mr.
MONTGOMERY WARD
STATE AND MUNICIPAL
State, Municipal
Analysis
on
BONDS
Request
(ITAILIIHID
ANO OTHER
YORK
1840
STOCK EXCHANGE
STOCK AND COMMODITY
DEPARTMENT
CITY BANK
EXCHANGES
N. Y.
Bond Dept.
Net
To
T.L.WATSON &Co.
Active
Dealers,
Canadian
Teletype: NY 1-708
Banks
Maintained
and Brokers
NEW YORK 4,
N. Y.
BRIDGEPORT
Dallas
•
PERTH AMBOV
M t ' T "
'
DEPARTMENT
offices from coast to
General Gas
Analysis
Domdoox Securities
l&RPORAXIOTI
MONTREAL AND TORONTO
GOODBODY &
115
BANK
coast
upon
request
Orders
DIRECT WIRES TO
MEMBERS
SotdAlO€4t COMPANY
'
BONDS & STOCKS
Insurance Stocks
FIRST
34
CANADIAN
Teletype NY 1-2270
STREET
t
Markets
Bank and
BROAD
t
Chase Manhattan
BROADWAY, NEW YORK 0
CANADIAN DEPARTMENT
American Stock Exchange
25
BOND
t
Executed On AH
Exchanges At Regular Rates
Commission
Exchange
AVAILABLE
*
REQUEST
Members Hew York Stock Exchange
CANADIAN
SECURITIES
1832
Members
New York Stock
.
HARRIS, UPHAM & C9
120
ST.,N.Y.
established
:
THE
THE FIRST NATIONAL
New York 6, N.Y.
Miami Beach—Rye,
30 BROAD
i
REVIEW"
OF NEW YORK
115 Broadway,
Bonds and Notes
BOOKLET
"ATOMIC ENERGY
ON
J. R. WlLLISTON & CO.
Public Housing Agency.
COPIES OF OUR
NEW
MEMBERS NEW
BOND
22
of the
1955.
I
m
ARE NOW
BANK
page
Banks at the Annual Conventioi*
Association, Los Angeles, Cal., Oct. 17,
by
and
CHEMICAL
CORN EXCHANGE
on
NOW IN
Securities
telephone:
the great
28
Club of
U. S. Government,
Municipal
A.G.A.
the
in
we
in
State and
encouraging
potentialities of our fuel and appliances. Our labora¬
tories' requirements have been strengthened to the point
of rendering obsolete all gas ranges requiring manual
lighting. The gas industry established new records in
1954 and is on its way to break those records in 1955.
On the basis of figures to date, total sales of gas are
running more than 8% ahead of last year and may
porate securities are
DEALERS
that brought
grounds.
REGISTRATION — Underwriters, dealers and investors in cor¬
afforded a complete picture of issues now registered with the SLC
potential undertakings in our "Securities in Registration" Section, starting on page 36.
SECURITIES
year
and gas facilities were installed
tested at
the atomic testing
and
endeavor,
winning of it
consuming
Hauge
industry, too, it has
year
reports from the action demonstra¬
tion
cities; the Pacific Northwest
seemed assured of getting natural
course, i can
taken
gas
of great progress. New
records have been set in sales, num¬
ber of customers and revenues.
It
a
gas,
action
human
the
For
from
but on this
discuss only its
vitally important economic aspect.
It is profoundly true that men do
not live by bread alone; but bread
of
bal¬
to be
appears
possibility.
been
apply it to
of
philosophy,
condition
magic, but, of course, this fact has no bearing
upon the question whether it is sound or simple
page
anced Federal budget
occasion I propose to
baggage. Indeed, in national political circles there
are few if any who to this day dare question its
on
the first time in many years, a
conservatism.
This
of progress for the entire
least a temporary cessation
war would erupt into a shooting
and personal income have reached
greatest peaks in history. For
problems of our own time; to restate,
if I can, what it bespeaks in every
time:
the
philosophy of dynamic
rigid supports to implement it, which the
took over boots and
Continued
sage
at
the
injunction
invoke
progress
cold
Employment
war.
one
seen
teachings."
another
of the elements of the New
again and again to indicate how
have
It struck me as an exceed¬
ingly wise distillate of human expe¬
rience.
I would like here today to
Eisenhower Administration
and
has
We
of fear that the
con¬
been
year
city of Istanbul I came upon
Last month in the storied
Deal, albeit with flexible rather
Since this concept is so
This
nation.
this ancient Turkish proverb.
rigidity vs. flexibility, the cold truth is that the
notion of parity itself is the height of economic
absurdity and ought to be dropped. It is one of
those New Deal concoctions which served to help
combine farmer and labor vote to keep the New
Deal and the Fair Deal in full flower for a good
It is
Denies "Eisenhower
"standpatter."
a
"Study from new books but from old
of
Deal and the Fair
which is the conservation of our tradition
preservation of free
markets and sound currency.
names.
But whatever the
many years.
among
growth and
industry during past year, but warns that
question of the extent that
on
,
of the gas 1
other fuels i
and energy resources are hard on the heels of the gas
j
industry. Says if the industry is to continue to improve,
it must have a dynamic forward look and urges an
i
integrated selling effort be launched by entire gas industry. Lists new objectives of American Gas Association.
pointing out there is a variety of systems to meet
man's economic problems, Mr. Hauge says, in our own
party have their way, and it appears all but cer¬
tain that they will have their way. The chief dif¬
ference between the two major parties seems to
President, American
Mr. Banks reviews the
In
of the
members
Gas Association
President, Southern California Gas Company
Retiring
Administrative Assistant to the President
winning next year's national elec¬
j
By F. M. BANKS*
By GABRIEL HAUGE*
cratic
Copy
Cents a
40
Price
N. Y., Thursday, October 27, 1955
NEW YORK STOCK
BROADWAY
NEW YORK
CO.
EXCHANGE
1 NORTH LA SALLE
CHICAGO
ST.
IRA HAUPT & CO.
Memberu New York Stock Exchange
end other Principal Exchangee
111 Broadway, N.
40 Exchange Place,
Teletype NY 1-702-3
New York 3, N.Y,
WHitehall 4-8181
WOrth 4-6000
Boston
Y. 6
Teletype NY Ir2708
Telephone:
Enterprise 1820
2
The Commercial and Financial Chronicle
(1750)
.
..
Thursday, October 27;» 1955
.r
•v
The
Brokers, Dealers Only
For Banks,
American
Express
Dan River Mills
participate and give their
Corp.*
for favoring
reasons
Haile Mines
they to be regarded,
are
as an
offer
.1
be,
to
Louisiana Securities
nor
EDMOND L. BROWN
Lithium
Corp. of America
of
Vice-President, Garrett and Company
120 Fidelity Union Life Bldg.
Dallas, Texas
Long-Bell Lumber of Mo.
those
'
Metal & Thermit
safety
companies
Pan American
Sulphur
Before
Portsmouth Steel
Rockwell
the board.
Pipeline
and
the
ade,
*Prospectus
the
have
Corporation
the
gone
record
on
about
of
its
Stock
role
Exchange
120 Broadway, New York 5
WOrtb 4-2300
Private
Wires
to
It is true
serves
Principal Cities
has
in indus¬
the known
Teletype NY 1-40
sonnel of PAS
re¬
sive
be¬
are
of
ing
depleted
rapidly
and
discoveri
with
up
e s
Brown
The
nation
pounds
of
consumes
thetically. The world overall
at the rate of about 4%
|fcpomtEIA&fa
Members
New
York
American
ISO
Stock
Stock
Exchange
the
six
of
nage is the
TEL. REctor 2-781S
per year.
months
of
1955
using sulphuric acid as
the leaching agent has been found
very economical.
Alabama-Tennessee Natural
Gas
piles of uranium
this
amounts
of
large
the al¬
duced
are
commercial
that
have pro¬
sulphur, there
four domes owned by sulphur
companies
for
future
reserves.
Another, the Humble dome, is
now being core drilled
by Houston
Trading Markets
Gulf
Sulphur
Corporation
Eleven
Gulf Coast Leaseholds
of
ceased
of
Magna Theatres
j
United Artists Theatre
i
i
t
the
the
23
production
account
Manufacturing
Company
establish important
may
Circuit
of
11
which
reserves.
domes
of
have
sulphur
being depleted
have
ceased
on
and
since
&remeOTi(iompaT\u
ESTABLISHED
8
This year marked the end of Hoskins: dome which has produced
have produced more "sul¬
phur than Hoskins. Regardless of
haw big or prolific the sulphur
1929
Tel. HAnover 2-4850
domes are, they must come to an
end sometime.
There have been
few significant discoveries of sul¬
rich
tepec
last
20
years
except
deposits in the Tehuan-
area
For Financial Institutions
TRADING MARKETS
t
'
Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines
Marinduque Iron Mines
j
Picking a winner in the market
is somewhat akin to handicapping
the horses. The smaller the field
the
better
results.
Anyone
can
win betting Swaps to show.' In the
oil
industry there are several
thousand companies
with listed
and
unlisted
securities
outstand¬
ing.
M. S. WIEN & CO.
Established
1919
Members
New York
1
Security Dealers
Ass'n
Exchange Place, Jersey City 2, N. J.
Tel. HEnderson 5-9400
Teletype J CY 783
New York City Telephone
BArclay 7-0045
established
future
a
may
have important additional
serves.
'
-
industry
of how
many gallons of hot water it takes
to melt and raise a ton of sulphur
to the surface.
The average for
figured
are
the
industry is in
cost
of 4,000
excess
hot water to produce
ton of sulphur.
On the basis
gallons
of
the
on
of
to 2,000 tons of sulphur
1,500
day, PAS has developed a ratio
of about 1,000 gallons of hot water
per ton of sulphur. Plans are now
In the sulphur producing in¬
dustry there are four listed com¬
Texam
oil
The
earnings
of
compare favorably
U. S. producers.
It
with the top
is estimated
that
PAS'
profit—after .all ex¬
penses, royalty and taxes—will be
about $10 per ton.
earnings of this
not
be
their
hard
to
forecast
production
has
PAS
phur
now
Therefore, the
should
company
and
based
stockpile
on
shipments.
accumulated
approximately
of
250,000 tons which will be main¬
tained
this
at
Based
ization
approximate level.
PAS'
on
of
the
1955
modest
capital¬
2,183,787
shares, after
options and con^
all
of
convertible
earnings
should
bonds,
be im¬
portant despite the fact the
com¬
spent six months in estab4
pany
lishing
stockpiles
250,000 long tons.
ing is
important
in
of
excess
This
attracting
long-term quantity contracts.
With a 50% increase in plant ex¬
the
1957 with
an
of
convertible
deben¬
ture
bonds
at $25 a share should not be
convertible
into
com¬
overlooked.
American
vestment
now
is
a
better
in¬
under
area.
„
not
stacles
The 10 unlisted companies provide
an investor with most
any degree
no
as
easy as
have
The
it reads.
been
going
PAS
was
Many ob¬
overcome
doubt others will be met.
year
primarily
was
present
it is
i
ANNUAL REPORT
!
"*
t*
in¬
oil
Copies Available
balanced
a
.....
Indicated
„
GEARHART £ OTIS, INC.
74
TRINITY PLACE
.
show
reserves
713,-
000,000 MCF of natural gas and
15,339,000 bbl. of oil and distillate.
Both companies had experience
and qualified personnel.
Ralph
Johnston
with
his
Since 1932
Specialists in
VIRGINIA—WEST VIRGINIA
NORTH and SOUTH
intuitive
or
ability to smell an oil
field, and Mr. W. Stewart
gas
Boyle
to
with his
drive
and
ability
impor¬
handle
CAROLINA
MUNICIPAL BONDS
concomitantly
details will
make, in the writer's opinion, one
tant
and
necessary
of the better combinations for the
hard
work and follow-up neces¬
in the oil and gas business.
gas and oil it
sary
In
the search for
often
becomes
The
nance.
with
.The
the
fact
size
than
more
spread
necessary
risk involved
of
that
the
this
■F. W.-
CRAIGIE&CO,
RICHMOND, VIRGINIA
Bel! System Teletype:
RH 83 & 84
Telephone 3-9137
fi¬
to
varies
enterprise.
enterprise has
doubled
the
in
size
geographical
has
fi¬
and
nancial risk to
a point where the
capacity of the com¬
financing
bined
companies
will
be
much
5;
°
w
m
greater than the combined'figures
of either alone.
The management and associates
own
over
60%
of the outstanding
stock.
All
expenses of developing the
bulk of the company's proven
gasreserves
are
borne by
El Paso
in
accelerating
has moved
into
and
production
S.
a
.
proven
reserves
pf
if
may
emphasis placed
a
number
only
is
as
formula of
of
a
any
factors.
necessary,
one
guide.
one
Some
N. Q. B.
OVER-THE-COUNTER 1
INDUSTRIAL STOCK INDEX
14-Year
Performance of
35 Industrial Stocks
FOLDER ON REQUEST
however,
Using
of the nation's
Continued
with
vary
on
This
U.
of
with large proven but
undeveloped acreage.'
Any estimate of the value of
company
yardstick
stage.
STATES OIL
long-term
it has diversification by type and
planning
stages of the companies' existence.
stock¬
had its major reserves
Texas; Johnston Oil & Gas had
provided
with speculative gains in the early
AMERICAN
profit¬
to
$4
mon
Pan
Broadway,N.Y.6 COrtlandt 7-5680
should be
a
idend pay
able. The 5%
Brokers & Investment Bankers
111
the
earnings poten¬
per share by Natural Gas which also guarantees
70% of earnings div¬ a market for the product.
Such
out is entirely reason¬ a contract is of great importance
company,
in excess
tial
in
its major reserves in the San Juan
Basin of New Mexico. Combined
stockpile
in
for
Texam
in
panies and 10 unlisted companies.
The listed companies have already
investors
Home Office Tokyo—70 Branches
oil and gas operation.
sul¬
a
use
Combined
the
original
Established 1897
sim¬
reasons
needing
vantageously
come.
$30 a share
than it was at $12 several
-years
ago when its
plant was in the
their
was
operation which could ad¬
gas
Mr.
should
Yamaichi
wasprimarilyan
operation
Johnston Oil & Gas
1956.
PAS
write
Securities Co., Ltd.
The
gas contracts to stabilize revenues.
a
way-do increase plant capacitv in excess of 50% which
or
company.
able
Jr.
Call
a
holders.
a
the sulphur
in
Profits
re¬
•
L. Shea,
*
interesting
and
John
investors with knowledge
of Japanese potential.
case
very
produc¬
'
to investors with vision—
basis,
share
are
pansion and the rapid growth of
in Mexico.
f
plest
sulphur—total produc¬
10,787,812 tons in the past 32 years.1
Only three other domes in the version of the
the
'
is
is
the
The
exercise
phur in the
FIRM
largest
1935.
world
31 Wall St., N. Y.
The
Co.
point.
on
;
have unusual appeal
may
^
Na¬
merger
sec¬
in the
the Texas
should be completed in
addition to the 23
LD 33
;
Jaltipan dome is the
Gulf Coasts. In all, 23 of the ap¬
proximately 200 known salt domes
Lynchburg, Va.
offices
Petro¬
perfect
in
under
in this area have produced sul¬
phur in commercial quantities. In
leum
planning and
usually found under the caprock
of shallow salt domes
along the
Texas, Louisiana .and
Mexican
Scott, Horner &
Mason, Inc.
tional
new
one
bearing formations
suitable for the frasch process are
Dan River Mills
Haskelite
require
sulphur from
Sulphur
Company
Dover
will
being created,
ready short supply,
Company
Commonwealth Natural Gas
Tele. LY 62
demand
With vast stock¬
ore
careful
dome, which is adjacent
to the rich Mezquital dome, which
processing of uranium
of uranium
Company
Texas
wilderness
a
modern
Teterete
sulphur ton¬
by the sulphuric acid process.
The acid process for the recovery
American Furniture
From
tion potential in excess of 30,000,000
tons.
Also, PAS owns the
ore
Trading Markets
branch
SECURITIES
into
share
has
the recent require¬
ments for substantial
BROADWAY, NEW YORK 5
our
JAPANESE
Oil
Gas
&
ing is a few acres larger than Jal¬
tipan in area. With only half of
the Jaltipan dome explored, PAS
consumption of sulphur was
15%. ahead of the same period in
One
NY 1-1557
•
Mobile, Ala.
Direct wires to
The
Johnston
aggres¬
young,
it.
of Texam Oil & Gas and
merger
tion since the early twenties. Bol¬
con¬
the
1954.
Exchange
first
doing
sense
619 tons of
of the basic chemicals
sumption of sulphur is increasing
For
make
Gulf Sulphur Boling dome. As of
Jan. 1, 1955 it produced 43:288,-
that cannot be manufactured syn¬
Since 1917,
HAnover 2-0700
New Orleans, La. Birmingham, Ala.
two and two add up to eight
and
largest sulphur dome
world.
sulphur for
child. Sul¬
every man, woman and
one
ness
"know how."
ond
phur is
PAS'
notes
L.
Edmond
Each year the
Rights & Scrip
19 Rector St., New Yerk 6, N. Y.
in this busi¬
cases
sulphur
producing plant in 22 months de¬
the
75
are
rare
some
graduates of this school
efficient
an
demand.
about
and
knowledge.
to
have not kept
Specialists in
In
The-only
college of sulphur
producing knowledge in the past
been the top three sulphur
companies. All the executive per¬
vital
try.
American
Members New York Stock
Exchange
Members American Stock Exchange
phur Company.
shortage
sulphur
and
1920
Member
Steiner,Rouse&Co
.
industrial
New York Hanseatic
Established
For
t h orities
a u
Associate
product.
chemical
and
request
on
(Page 2)
Mass.
Co., Boston,
*
has
dec¬
past
; '
*
Shea &
Shea, Partner,
companies, Pan American Sulphur and world sulphur markets in an
now
taken its place as the
efficient and orderly manner and
third
largest sulphur producing is
rapidly being recognized as a
company in the world.
It has all "blue
chip" of the future by the
the competitive requirements —
conservative investors.
management—reserves—a modern
low cost plant—efficient low cost
JOHN L. SHEA
production and ample finances
Partner, Shea & Co., Boston, Mass.
to compete with Texas Gulf Sul¬
phur Company and Freeport Sul¬ Texas National Petroleum Co.
discussing the security I
industry
Travelers Insurance of Hartford
f
L.
John
old—Quoted
Co.—
Petroleum
National
Texas
manage¬
play them
B ought—S
Out of these 10 unlisted sulphur
like best, it would be appropriate
to mention a few words about the
Mfg.
Transcontinental Gas
Sulphur
pick
can
with
Company, Dallas, Tex¬
(Page 2)
as.
inves¬
an
An investor
ment and reserves and
across
Mexican Gulf
speculation
or
tor desires.
!
Brown, Vice-President, Gar¬
rett and
Investors Div. Services "A"
it;
Sulphur—Edmond
American
L.
sell the securities discussed.)
to
Alabama &
Selections
particular security.
a
intended
not
are
Participants and
Their
Pan
(The articles contained in this forum
Week's
This
Forum
A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the
country
Continental Telephone
Great Western
Security I Like Best
on
the
larg-
page
19
National Quotation Burean
Incorporated
46 Front Street
New York 4,
N. Y.
Number 5476
182
Volume
.
.
.
3
(1751)
The Commercial and Financial Chronicle
INDEX
1956 Business to Reach New Peaks
TfOSTEl
B. S.
Page
Articles and News
By ROY L. REIERSON*
and company
Vice-President and
Trust Co., New York
Economist, Bankers
Economics
later easing
appreciable effect upon the
plant
Warns, however,
no
of corporations.
programs
More
The Agonized Market
activity will be supported by substantial demands
However, he
in
already
—Hon.
Richard
goods
and
pro-
in
duced
11
—Merle E. Selecman
Easy Money Sparked the Housing Boom—John R. White
previous
ord
of
trial
kindle
Roy L. Reierson
rent
high mark, although here the gain
will be
1953
a
more
modest
These records in the ag-
3 to 4%.
gregate statistics will be accompanied by new peaks in the out-
of
steel,
electricity, and
automobiles, in personal income,
employment, - retail
sales,
and
many more.
Finally, and in contrast with 1953, this year has been
one
of steadily expanding activput
anticipated midsummer
has failed to materialize, and
general course of the economy
remained upward. In all, the
ity;
the
sag
the
has
American
economy
strated
a
capacity
growth
which
far
even
has
economists
a
year
ago.
however,
Now,
ex-
and
businessmen
of
we
peering into the crystal in an endeavor to
discern the prospects
the
economy
continue to expand
through 1956? How serious is the
the
year
ahead.
inflation?
of
threat
Will
Does
the
policy of credit restraint
business downturn? Obviously, only the passage of time
can provide'the final answers, but
we nevertheless may hope to obtain at least some clues to the
current
augur
Progress
Gas Industry
for the
Gulf Coast Leaseholds
Cover
Needs and Supplies
Corpus Christi Refining
4
I
Utility Survey of Accelerated Depreciation
A
"Excursions" in the Insurance
a
Incentives
—
Spokane Stock Exchange
Should Be Paid Off
Spitz Holds National Debt
17
18
in
Upturn
See It
As We
and
Bank
In
order
to
is
often
necessary
gauge
the
to
future
see the
F oodF air Properties,Inc.* *
24
Gulf CoastLeaseholds, Inc.*
PacificUraniumMinesCo.*
48
Bookshelf
Business Man's
Soil Builders
8
Coming Events in the Investment Field—
Dealer-Broker Investment
present in perspective against the
background of the past. Perhaps
the most remarkable feature of
the current economic upturn is its
From Washington
16
Ahead of the News—Carlisle Bargeron
Indications of Current Business
Activity
46
Banks
About
Observations—A.
20
Bankers
and
Wilfred
♦An address
IMew
ence,
by Dr. Reierson before the
by the Federal Re¬
The Market
Also,
the
government
took
Bank Management ConferBoston, Mass., Oct. 21, 1955.
England
Cnn tinned
nn
nnno
?4
The
••
...
.
!
1
Twice Weekly
COMMERCIAL and
CHRONICLE
FINANCIAL
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Reg. U. S. Patent
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•
*
Chicago
Schenectady
•
•
Glens Falla
Worcester
C.
Eng¬
at
the
post
office
at
Uranium Producers
WILLIAM
SEIBERT, Editor & Publisher
DANA
SEIBERT, President
Thursday, October 27, 1955
Thursday (general news and ad¬
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(com¬
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records, corporation news, bank clearings,
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Copyright 1955 by William B. Dana
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Reentered
Office
COMPANY, Publishers
2-9570
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Drapers'
ary
WILLIAM
REctor
BROAD
Uranium
5
48
___
Will Become One of the
25
25
Mid-Continent
COnilUUea 071 page C*
Spencer Trask & Co.
Firmly Believe
2
Washington and You
The
specialized in
16
Best—
land,
have
We
26
The State of Trade and Industry
Published
For many years we
WHY
42
and You—By Wallace Streete
I Like
Security
to
36
__:
Securities Salesman's Corner
environment in the investment
significant action in the field of
31
Security Offerings
Prospective
helped
Direct W ires
Philadelphia * Chicago * Los Angeles
17
in Registration
Securities Now
inc.
40 Exchange PI., N. Y.
43
—
Securities
Utility
mor«
Teletype NY 1-1825 & 1-4844
33
Governments
Railroad Securities
markets which was conducive to
long-term borrowing and investjngi
Mackie,
5
May
Reporter's Report
Public
Request.
trading markets in
over-the-counter securities
250
HA 2-0270
News
Request.
on
Singer, Bean
&
8
Notes
NSTA
than
44
Funds
Mutual
on
Prospectus
18
ITe maintain
cushion the business downturn
but also assisted in establishing
an
*Circular
**
-
after mid-1953 and through
only
International Corp.
8
Recommendations
Spiral"
"Britain's Wage
Einzig:
Our
not
[,
_i_Cover
Stocks
Insurance
Assuredly, government policy
made a contribution to business
1954
office in
City
Corpus Christi Refining Co.
(Editorial)
Our Reporter on
of
Lake
American States Oil Co.
Regular Features
described as the first "normal"
recovery in a good many years,
serve
branch
to
22
Depressions (Letter to Editor)
of Preventing
Further-
most
Perspective
Teletype: NYl-4643
wire
Salt
itures, while the easy credit pol¬
Business
Direct
Condemns Dr. Willford I. King's Plan
F. Bauer
George
strength: tax reductions early in
1954 helped maintain personal incomes
and consumer expend¬
The
Broadway, New York 4
DIgby 4-4970
Decade
Next
42
Smith Forecasts $600 Billion Outlays for
George Kline
cerhaps even more encouraging
respect: it is being sustained
without the stimulus provided by
continuing backlogs of unsatisfied
wants, as was the case in 1949,
nor is it propelled by rising government spending, as was true
after the outbreak of the Korean
War in 1950.
Instead, recovery
was sparked by forces originating
in the private sector of the economy, so that the upturn may be
icies pursued
J.F.Reilly&Co.Jnc.
15
(Letter to Editor)..
the current business adis "normal" in another and
present situation.
Government's
Field
Members Salt Lake City Stock Exch.
Richard
decline of 1927. The explanation
for the slower pace of the recovery in 1955 seems to lie in the
fact that the downturn of 1953-54
was modest; in general, recoveries
from a sharp business recession
are more striking than those that
follow a minor adjustment. The
present expansion in our economy is not a rebound from de-•
Private
9
*
H. W. Manning Criticizes Canadian
less rapid
probable future by appraising the
major
elements
of
potential
strength
and
weakness in the
It
j
.
exces¬
over
than in 1924-26, 1936-37 or 194950; it more closely resembles the
recovery from the mild business
more,
—Richard A. Rosan
•
In fact, the cur¬
upturn has been
vance
once
are
again approaching that season of
the year when increasing attenfion
is
customarily devoted to
for
Great
Banks
—J. Ed Warren
pression levels. Thus, rather than
indicating diminishing economic
has demon- vitality, the current recovery apfor vigorous parently
reflects
sustained
exceeded by j strength.
optimistic
most
the
pectations
apprehension
sive momentum.
also
new
a
over
American States Oil
by no means been so rapid as to
produc¬
set
of
Year
M.
Whats and Wheres of Our Energy
records, the rate of advance has
will
tion
A
—F.
set new ■
Indus¬
year
1953.
1955:
year has been
f'-sufficiently vigorous to
rec-
Basic Atomics
At American Gas Association Convention
in business activity from
^^^HBB^^h i the setback of last
Soil Builders Intl.
26
..
recovery
13
____
15
provided
by defense,
the fear of war, or the after^■\math of war.
!•. face of the Upturn—While the
above the
6%
WHitehall 4-6551
12
Steel—Benjamin Fairless
of
Foreign Conditions—Roger W. Babson
war,
about
higher,
Depression—Donald I. Rogers
Property Rights, the 5th Amendment and the Trust Business
centives
the
will
total
perhaps
$385 billion or
Dept.
NEW YORK
WALL STREET,
99
10
' t^^^^BTvate economy rather than the in¬
year
Obsolete Securities
10
Nixon__
Telephone:
services
■■■■■I
all
of
value
Philosophy Behind Them
abun-
become
dollar
tire
together!
get
6
C. Martin, Jr.
Old Questions—Williams Mc.
and
obsolete*
6
1
Prospects for Convertibility—Viscount Harcourt
business rise, but the present) re¬
covery, for the first time since
World War II, reflects the dynamic factors inherent in our pri-
vernacular for
Reappraisal—Robert S. Byfield-.i
Economic Policies and the
The Perfect Price
has
FAIR WEATHER
4
year
resemblance, in many basic redantly clear that 1955 will be an- spects, to former periods of"nor-.,.
other record year for our econmal" business expansion.
Not.
omy.
The gross national product only may precedents be found for
—economists'
the length and strength of the
It
CobleighJ
The Best Insurance Against
some danger of
become acute.
sees
may
ur
"excesses" that
'
ahead.
New Answers to
generally sound, and business
Holds credit is
of the outlook.
U.
us
will make them vulnerable to declines,
should business conditions indicate even a slight reappraisal
advance in stock prices
"
Power to ALCOA—Ira
IT'S ALWAYS
3
Peaks—Roy L. Reierson
When
sustained
a
Cover
1956 Business to Reach New
possible, Dr. Reierson holds recent decline in stock
market prices should have
Conservatism
Dynamic
Eisenhower
of
—Gabriel Hauge
Predicting business in 1956 will reach new peaks but with
funds.
80 Wall St., N. Y.
5
BO 9-1600
1
The Commercial o.nd Financial Chronicle
Thursday, October 27, 1955
Whats and Wheres of Oni
Energy Needs and Supplies
World's
Most
Modern
30
E.
40
ST., N.Y.C
EVERGREEN
8-4100
Volurqe 182
acceptance
Number 5476
by
nearly
students of the
(1)
all
.
.
The Commercial and Financial Chronicle
.
of
the
subject:
That the population of the
nation
will
Maximum
(1753)
continue
to
estimates indicate
the population
double
can
Steel Production
The
increase.
in
Carloadings
Retail Trade
State of Trade
the
last half of the century, just as it
in the first half.3
But doub¬
Commodity Price Index
Auto Production
and
ling the 75 million inhabitants of
1900 is iar different from
Industry
doubling
In
Business Failures
THE INVESTOR AS READER*
150nmillion plus of 1950.
J
fact, the increase in numbers dur¬
ing the next 25
be
much
as
_
(2) Assuming that
to
will
we
maintain
standard
con¬
present
our
with that of the population.
crease
is
compounding relation¬
a
ship that
(3)
at
grows
each year.;
That the
production
continue
a
long
energy
consumption
be
matter
will
of
price,
special qualities
a
convenience and
as
financial
literature
bound up
maintains
as our economy
level above subsistence.4
Scattered
products
seasonal
industries
difference
and
between
economic
know
of
existence
availability.
existence
the
of
We
coal
in
places distant from the market or
of poor quality or only minable
at high costs. We know huge de¬
posits of oil shale and tar sands
exist that up until now have not
been
utilized.
And
finally,
the
the
at
material,
International
recent
ference
unfolded
as
Uses
Peaceful
on
Con¬
of
Atomic
Energy at Geneva, Swit¬
zerland, staggers the imagination,
considering
the
many
exciting
Is
Atomic
The
it
usable
that
fact
exists
make
Available?
Energy
mere
source
does
available
come
into
meet
an
as
energy
however,
not,
a
source
of
that
several
it
category
It
tests.
must
be
must
made
producible by the outlay of
capital, it must then be produced,
into
usable forms, and
the point of need
on the basis of special qualities, at
a favorable price, that will make
it desirable to the potential user.
transported
At the
.
cost of
to
time
same
increase in
an
competitive fuel or scien¬
and technical developments
tific
a
formerly uneconomic
either by re¬
duced competition or a reduction
in delivery costs, or the creation
bring
may
a
fuel into active use,
of
In the past we have
new use.
a
formerly a waste
product, become the most valuable
component of crude oil by the de¬
velopment
of
the
automobile.
Similarly, natural gas, formerly of
gasoline,
seen
little
,
in
value
the
field,
by establishing industry
at sources of supply and the de¬
large volume, long
pipeline transportation.
two-year low in the week ended Oct. 8.
a
*
categories
a
"
*
[
total of 1,458,100 on job- ;
connote
-
;
..
A continued
uneconomic
source
into economic
continue
just
to
in
occur
supply will
the
future,
they have in the past.
as
I
Continued
on
page
30
in
"Energy for the
Future" in a searching study of popu¬
lation
trends, estimates that the maxi¬
mum
plausible population will be . .
225
million in 1975 and nearly 300 million in
the year 2000 with the world population
at
2.33G billion in 1950 and increasing
to 2,900 billion in
1975 and 3,700 billion
in the year 2000. The President's Mate¬
rials
Policy Commission "Resources for
Freedom" assumed a population of 193
million by
1975 after consultation with
:
Putnam
3 Palmer
.
the
Bureau
stated
that
and
180
cf
4 W.
220
K.
the
Census.
estimates
The
ranged
reports
between
million.
Lewis
in
his
address
"Energy
Resources"
presented
an
interesting
study cf energy prices related to food
and
concluded:
"It
required but little
the figures to see that this
(Boston)
could
tolerate
far
higher fuel costs without undue hard¬
ship" (rather than substantially reduce
its use cf energy)
and ".
while the
community will always endeavor to <ret
its
energy
at
the
lowest
practicable
study
of
economy
.
and
price,
ergy
in
a
total
far
of
will
while increasing costs of en¬
tend to decrease consumption,
situation
energy
less
the
.
of
the
sort
consumption
just
will
rapidly than the rise in
basic
energy
supply."
described
drop
off
the cost
instance
high-;
;;
in sundry periodicals, on the realistic' ?
they must pay off in hard dol- •;»
lars-and-cents^ The news and editorial section,
.
;;
■''
'
\
/,
too, attests to the reader's interest in prophecy.
high level of seasonal activity plus the rehiring
plants that had completed model *
changeovers, contributed to the lower jobless levels, according to
the bureau.
Largest drop in insured unemployment in any one
state—16,900—was reported by Michigan.
- /
At the same time, the department noted initial claims for
state jobless
than
Steel
producers
a big blue pencil in an all-out
incoming orders. But new business
the mills'-ability to produce and backlogs
are
wielding
to
exceed
continue to mount,
up with the reader's
"liquidity" of the market. The temptation
as a process for dealing in
quotations, in lieu of the values behind the quotation. Of course,
this stems from the literature's pervading preoccupation with
changes in prices, rather than with the price per se in relation to
earnings (to compose the price-earnings ratio) or value measure.
is whetted to conceive of the market
The boom
.
of
The
becoming academic for
To fill the gaps in their
steel customers are turning to ware¬
many consumers.
is
assured,
even
turning
away
indicates that all major steel
consuming industries will be in the market strong in 1956. Their
production goals are high and they will be trying to rebuild de¬
pleted inventories.
In the automotive industry a sharp 30% increase in United
States car building was on tap last week over production a week
earlier as the wnole industry became engaged in 1956 model
"The Iron Age"
assembly.
Automotive
"Ward's"
Reports" pegged the week's car yield
with 101,581 produced during the
compared
units
131,952
previous work period.
The schedule represented the highest level
ending Aug. 20, when 138,209 cars were
the week
Chevrolet, its program nearly triple output the week before,
sparked the upsurge, "Ward's" said, and returned the lion's share
of United States total car making to General Motors Corp.
Elsewhere, Plymouth was sighting its best yield in over five
months, Ford Division was at a four-month high and Pontiac
booked a new all-time peak.
General Motors accounted for 38.8% of the week's car roster,
Ford
38.0%, Chrysler, 21.3%
of 1955
on
toward
the when
a
a
there is
Again,
market
than
timing is that it appears
the what—conveniently sub¬
market price structure moving as a unit
market consisting of divergently moving
the
great
temptation,
despite
the
repeated
right, of "beating the game."
THE FORECASTER AS WRITER
In the writer's
handling of the
news,
editorial selection and
is often employed to fit his forecast, as well as the
explanation for the preceding developments. Thus he can be
readily rescued from the consequences of an erroneous forecast.
emphasis
fact, there is the general practice of rationalizing preceding
"Inter-
market action via the writer's interpretation of "the news."
'
pretation" chases the market action, both up and down.
foible in the commentary area, you will find double
interpretation of a single factor. Peace
is sometimes interpreted as bullish ("of course"), sometimes as
Again,
as a
standard self-contradictory
bearish (deflationary)—the selection being dependent on the pre¬
Now at hand are two thoroughly plausible
implications of the President's sudden incapacita¬
ceding market action.
of market
sets
tion:—(1) Bearish—via upset of "Eisenhower market" and confi¬
dence;
business threats, etc. (2) Bullish—via inflationary effect
more probable advent of a Democratic
Administration
the
from
post-1956; pre-election, politically-induced governmentally-stimulated expansion, etc. On May first, next, the market action between
now and then will determine the selection of the
(a) or (b) set
of factors to
sons."
"explain" the market's behavior as the "obvious rea¬
wise commentary after-the-event!
All part of the
Generally, there is an overall contrast of market commentary
with the value
approach.
Reinforced by the new Stock Exchange
rules, old tipping abuses in brokers' literature are substantially
curtailed. But in periodicals the important rationalization foibles
to which we refer remain ever more subtle and difficult to de¬
and stop.
tect
HOW TO READ
Some affirmative
and all other producers combined,
1.9%, said "Ward's."
Truck builders, meanwhile,
proclivities by the
forecasting failures, of resorting to hindsight in referring to price
action.
And there is the reader's sheer enjoyment of guessing
though orders are not being booked beyond the
by
his. forecasting
issues.
In
survey
recognize
stituting the concept of
In fact, it now
at
to
for the real situation of
first quarter.
A
stimulant
Another
easier
some
looks as though most mills will "drop out" one
month in first quarter as a means of cutting down on their back¬
logs and catching up with their delivery promises. This will help
but will not solve the problem.
in
as a
depictions, as well as systems of various kinds, offers emotional
escape from the burdens, difficulties and evidenced shortcomings
of quantitative value analysis and appraisal.
the point where going mill prices are
business in order to ac¬
commodate their regular customers and the steel brokers are
cleaning up on odd lots that ordinarily would sell at below-market
prices. Some consumers are buying steel of better quality than
they normally use, states this trade publication.
Expensive conversion deals are growing, it adds, but a shortage
of ingots due to the close balance of melting and finishing capacity
is keeping conversion pretty much under control. Nevertheless,
some
big consumers are devoting a lot of time and talent to
searching out conversion steel sources.
The surging demand for steel is almost fantastic, continues
"The Iron Age." If the mills wanted to open the flood gates, they
could book orders for most of 1956. As it is, their first-half output
are
increase
reader and otherwise, largely stems from psychologi¬
cal roots. Prophesy based on discovery of trend and other graphic
*
has reached
constant
investor,
according to "The Iron Age," national metal-
working weekly.
bullish pronouncement.
a
distorted conception of
totaled 254,000.
continues
Mar
Over-emphasis of forecasting is bound
pay
effort to control the flow
A. Wilfred
gains great interest thereby; with—other elements being anywhere
near equal—a bearish tinge arousing much more reader response
;
declined by 26,800 to 166,900 during the week
ended Oct. 15; The drop in new claims was widespread, with 39
states reporting reductions.
A year ago, these claims for jobless
pay
-
Any financial editor will confirm the fact that,
a
story or article concerned with a forecast
-
of workers by a number of auto
that
circumstances
existing
specific
,a
pers hnd
built.
and
integrally
are
criterion that
1954, and was the lowest since
the week ended Oct. 10, 1953, when the total was 782,800. Some
29 states reported reductions in the number Of individuals claiming
reached since
an
news
.
•*'
;
the week ended Oct. 9,
velopment of
bring
the
example, witness the very generous advertising appropriations by services for space in the
Sunday sections of our metropolitan newspa-
;
of Employment Security stated the
jobless pay in that week declined by
This compared with
29,000 to 783,700.
less rolls in
distance
Events
to
reaction
;
The department's Bureau
became
valuable
his
Many workers in the automotive indus¬
number of workers receiving
Warehouses
In order for it to
supply.
converted
layoffs in the food, apparel and leather
in a slight increase in claims for"
inventories, more and more
houses and steel brokers.
possibilities.
and
lighting the cleavage between the investment
'. and speculative approach.
:.
try were called back to work, with several companies completing
The .great and ever-growing proclivity Of
the model changeover process.
' /
- .
•
:--r.. ,fV the public to engage in forecasting is' reflected A
The United States Department of Labor : reported that 'the:
in both the advertising arid. he\Vs columns. For 'c'
number of job seekers receiving state unemployment payments ;
existence of power and fuel from
fissionable
are
with practically all the basic invest¬
ment principles.
Reactions to the forecasting
content of financial publications of; the various-
resulted
unemployment insurance.
;
the
in¬
in 1954.
benefits.
Basic to all studies of energy
supply is a clear understanding of
some
place
substantially above that of the corresponding week
was
.
of
the market
coverage.
Notwithstanding continued reductions in output of
dropped to
.
.
trends
and
to
higher rate
a
:
.
Most of the important psychological processes of
dustries the past week, total industrial production for the country-
of
living, the need for
energy,to furnish food, transpor¬
tation, heating and industrial re¬
quirements will continue to in¬
This
-
at-large
will likely
place in the
last 50 years.
tinue
.
clearly reflected in the handling of, and reaction to, news
The investor should realize that his attitudes toward
years
took
as
By A. WILFRED MAY
Food Price Index
did
the
Observations...
Electric Output
that
suggestions via
a
sound investor attitude:—
Maintain a phlegmatic attitude; keeping it unchanging
through succeeding periods of rising and falling speculative excite¬
ment of the crowd. Avoid manic-depressivism. The following pas¬
(1)
rolled
1,000,000th truck
out the
Friday last, as the week's program, estimated at 26,925,
topped the earlier week's turnout of 24,585 vehicles by 10%. Truck
sage
No.
not built until late December last year.
border, Canadian car-truck building was
in Wyman Richardson's "The House on Nauset
Marsh" is worth,
a
quoting here: "It seems clear that there is a rhythmic variation in
the mass emotioir of human beings. For a period, there is grad¬
though Ford, Chrysler and International-Harvester
only manufacturers in operation. General Motors re¬
mained strike-bound, with corporation-wide bargaining halted by
unresolved local issues at Oshawa plant.
The strike entered the
ually increasing manic phase, which, at its peak, and seen in the
light of a more normal period, is nothing short of 'craziness,' a
mass psychosis.
Comes the crash, and as in individuals suffering
from a similar disease, the manic phase shifts suddenly to one of
33rd
depression."
I
1,000,000
the
Across
strong
was
up
52%
the
were
day
facilities
on
are
American Motors and Studebaker Canadian
model changeover operations, "Ward's"
Friday.
still in
new
(2)
observed.
September
new
business incorporations continued the slight
upward trend of the preceding month, Dun & Bradstreet, Inc., re¬
ports.
Total charterings for the month came to 11,024, the largest
September number
marking
a
on
record and compared with 10,983 in August,
gain of 19.1%
over
the
9,256 listed
in September
a
price changes.
Reduce your general attention transfixed on
Distinguish between factual data and interpretation. In¬
terpretation is, of course, worthwhile—providing you recognize
(3)
it
such.
as
(4) Dispassionately concentrate on
news.
.
the value elements in the
•
.
year ago.
During the first nine months of 1955, there
company
formations throughout the country.
were
107,257
new
This represented
Continued
on
page
a
35
(5) For estimates of yield, you must in many cases
dend
get divi¬
policy by osmosis; scrutinizing several reporting sources
Continued
on
and
14
page
6
The Commercial and Financial Chronicle
(1754) 2
somewhere
The
In
Agonized Marhet Reappraisal
York
New
Byfield
Exchange
market break's
that
President's
maintains
excuse
illness was merely the
detonator, following the investor's
or
attitude
destructive
and
taxation
on
so
Industrials
I
do
not
this will
say
Mr. Martin maintains that now,
power.
tic
'
depends
about, but there are so many im¬
ponderables which cannot be re¬
solved
this
doubtedly
>
at
this
behind
was
of
the
is
there
an
abrupt
of stock
change in the direction
quotations because of any
single reason and I believe that
market
the
and
tober
presidential election, over a
away,
but
investors
are
year
Oc-
^
chance
decline
the
Mr.
recent
If
power.
the
this
to
We
blows
not
are
enough to be able to
the policies of any new
ception.
On
predict
Sept.
the
Democratic Administration
26
emotional im¬
d
t
e n
into office in 1957, but
undoubtedly one of the most vul¬
the
heart
about
an
pra i sal
sheared
Robert
from
listed
Stock
a
with
grand
total
to
the
-
President's
merely
and
per¬
in
the
markets.
excuse
the
or
on
The
was
deto¬
Other forces provided both
setting
and
downward
the
suosequent
which we
propulsion
The
months
of
has
luxuriated
for
in
many
climate
a
certainty,
but
the
illness brought forth
high degree of uncertainty and
uncertainty is always bearish. The
President's
a
tations
of
stock
had
persistent
slowly
rise
in
policies
and
money
the
and
took
the
of
Re¬
not
The
initiated
ten
usual
to
always
immediately.
policy was
"Washington
about
the
face
respect
do
present
ago
and
of
money.
with
credit
effect
quo¬
more
because
tightening
strictive
take
market
become
vulnerable
more
by
months
forms
of
higher margin requirements, less
liberal terms for housing loans
arid high rediscount rates. Often
in
of
the past skeptics in the face
policies of this character have
admitted that they worked in the
but felt
past,
that for particular
that "this time they are
going to be effective." Con¬
reasons
not
siderable
opinion
be
in
to
heard
beginning
was
August
and
Sep¬
tember that the bullish sentiment
would
nullify credit restrictive
measures, but they did not do so.
Besides the matter of tighter
and credit, there was an¬
other, but less obvious reason,
why common stocks might not
money
have
much value
as
psychologically,
Summer.
tion
The
of
the
as
today, at least
they did last
international posi¬
United
States
has
deteriorated markedly during the
past 60 days.
Some of
our
Allies
in
trouble; viz. The British in
Cyprus, and the French in Mo¬
are
rocco
recent
and
Algeria.
elections
places
in
The
trend
such
Indonesia
of
faraway
and
Representa¬
Cooper
(D.)
Tenn.,
radio broadcast
on
tax
March
16.1954:
"We
The
It
does
discount
1953
seem
propose
now
the
little
change this tax program by elimi¬
nating the provision which will
give a special advantage, worth
hundreds
to
a
millions
of
small
very
of
group
dollars,
tax¬
fortunate
of
payers—those
who
enough to
corporation stock."
own
Representative
such
in
dividend
in
the
not
too
of
to
the
Ohio
Edison
yielding
5%
if
are
Ccoper's
concurred in
views
by Representa¬
While
about
it
year to
a
shock
took
the
from
recover
which
they received after
Truman's '» unexpected
re-election i* November
1948, the
better
Utilities
turned
performance.
in
Closing
at
on
Election Eve,
Nov.
1,
1948, they declined through Jan¬
uary but
had regained all their
loss by March 1949. They made a
June low in that year of
33.84, but
"The Republicans have also had
substantially better figure than
just before the election, a year
a
consistent
philosophy
on
the
matter of taxes.
"Their
philosophy is that if
they give tax relief to those in
the high income groups, some of
the benefit may eventually
'trickle
down'
to
the
jority
of taxpayers.
down'
has
great
This
ma¬
'trickle
about, in
all history of Republican tax laws.
This
is
never
hardly
come
philosophy
of Abraham Lincoln who preached
liberty and justice for all. It is
the
philosophy
of
Alexander
Hamilton,who favored
special
the
and
month
one
by Wash¬
ington later this year or early in
1956, as may well be possible pro¬
vided
its
objectives
available
on
the stock
market may
within
til
some
by private industry. More
recently they were against the
development of Hell's, Canyon by
the Idaho Power Company
and
seemingly at almost every oppor¬
tunity they hammer away at what
they call "Big Business" and the
"give away program" of
their
political opponents.
energy
Of
course,
Fluid
almost everybody is
in favor of
high employment, high
expanding economy and
general prosperity, even the CIO,
wages, an
the Americans for Democratic Ac¬
tion and the League for Industrial
rising
cor¬
porate earnings. In 1955 it is likely
that the earnings on the 30 DowJones
upon
Industrial
stocks
will
be
In
fact,
mark time
narrow
range
un¬
<
do
of
do
healthy
with
you
the
The
interrelated
1950's
of the
thus
far
from
main
cur-
undercurrents
of
unorthodox, if
downright poor form, to reach
not
course,
conclusion
your
in the
of
course
introductory remarks.
But,
of emphasis, I would
your
as
of
matter
a
like
In
it
state
to
the
road
to
a
seri¬
people
social aims, the
or
our
substantialy
higher
living lies ahead of
standard' of
clear and
us
of war, or
among
political
over
smooth
modern
Up,
the
Down
as
to
foregoing is to be
a
gloomy forecast
the
interpreted
relative
tempo of business
in
1956.
The
Federal
Reserve
Board Index of Industrial Produc¬
tion may well stay close to
its
level
present
not retreat
record
its
least
figure. Yet business, prof¬
the prices for
common
necessarily rise, fall
stabilized
time.
same
which
The
at
and
one
chief damage
clouded political outlook
a
may wreak
during early 1956
con¬
itself with the all important
cerns
Dow-Jones
went
it
at
or
and
become
the
141,
substantially from that
stocks do not
or
of
When
Industrial
above
was
ratio.
475
not
because of
a
the
Average
so
long ago,
combination of
benign factors which perhaps
be re-created again
in
can¬
not
near
term
vestor
future.
may
switch his
well
so,
the
be
advised
to
common
stock
Southern Gen. Inv.
Corp.
(Special to The Financial
Chronicle)
General
ROUGE, La.—Southern
Investment
has
been
the
Corporation
Commerce
are
J. S.
formed
and
good
a
false
many
starts,
ups
adapta¬
and
tions.
war
with
offices
in
Building. Officers
Voorhies, President; T. B.
Clifford,
Vice-President;
Voorhies, Secretary; and
Carr, Treasurer.
F.
B.
E.
T.
managing the
was
from
driving
is adequate
Federal
responsibility for
money supply.
This
money management
improper
either
private
interference
political
or
and
by
inter¬
ests.
That is why we talk about
overriding
importance
of
maintaining
our
independence.
the
Hence we have our system of
gional banks headed up by a
ordinating
Board
in
re¬
co¬
Washington
intended to have only that degree
centralized authority required
of
to discharge
effectively a national
policy. This constitutes, as those
of you
in this audience recognize,,
blending of public interest and
private enterprise uniquely Amer¬
a
ican
in
character.
Too
few of
us
adequate¬
ly salute the genius of the framers
of
in
providing
or
central banking system
our
bulwark
of
this
organizational
private
and
banking
business.
Since the Federal Reserve Sys¬
came
into being, the prob¬
tem
lems
of
inelasticity of currency
immobility of bank reserves—
and
which
often
so
shortages
in
times
of
showed
currency
critical
of
as
up
credit
or
need
have
—
been
eliminated, and money pan¬
have largely disappeared.
ics
In this specialized respect there
be no doubt that the System
Furthermore, the machine
are
Con¬
ago
the
an
safeguard this
our
preparations for
false turns, and poor direc¬
war,
we
after
downs,
tions to
can
has made notable
progress, but in
the more fundamental role of sta¬
points,
traversing the grades,
crossroads*
and
danger
provided
only
that the
drivers
observe
is
capable
of
curves,
the
speed
laws,
are al|prt and
responsible, and suf¬
ficiently trained and experienced
in
the
art
of
driving
stand the nature of the
to
under¬
principles
of
bilizing
not
the
economy the
clear.
All of us
so
System
to
ence
of
capitalize
the past,
knowledge
make
bending
are
forts
of
while
drivers who understand and
great deal, it
ize
the
which
time-tested
derived
are
util¬
principles
from
our
in¬
possible
Century Concept
\
It
seems
rather striking that one
of the ideas
firmly imbedded
material faith,
concept
of
governmental
responsibility for moderating eco¬
nomic gyrations, is almost entirely
in
our
now
articles
of
the
a
product
of
our
own
Twentieth
Century.
This
is steadily
being brought into sharper focus,
has evolved from general reaction
*An
address
by Mr. Martin before the
of the New York Group
Meeting
of
the
Inveslment
cf
America,
1955.
on
New
Bankers
York
Association
City,
Oct.
19,
so
made
to.
as
policy
is by
a
that,
do
can
no
as
But
here
a
all
means
fiscal
we
monetary policy.
and
are
by
If
It must
appropriate
budgetary
to achieve
ble progress.
measures
our
much
ask too
we
if
aim of sta¬
of
monetary policy we will not
only fail but we will also dis¬
credit this useful, and indeed in¬
dispensable, tool for shaping our
economic
development.
answers
we
sought
the
to
massive problems of the 1930's in¬
creasingly emphasized an enlarg¬
ing role for Government in our
economic
Annual
current
our
contribution
accompanied
The
concept, which
the
powerful.
In
other
words,
we
should not place too heavy a bur¬
be
A Twentieth
on
direction.
be
money
in
best ef¬
the experi¬
and
a
this
should
note
den
heritance.
in
record
our
money,
large
as
propulsion, and the goals of the
journey they are making.
Our
ability to travel this road safely
depends upon a community of
to
which
are
commonly
"special situations."
BATON
achieved
not
equities
called
as
Hence, the in¬
allegiance, if he has
already done
as
turnpikes. We have passed
through the turnstiles and are, in
my
judgment, out on the open
road.
This
position
has
been
Price-Earnings
Ratio
of
as
to
adequately recognize
now.
absence
conflict
ous
years
entrusted
Reserve System
Act great care was taken to
tonight is to explore
and
is,
1
step.
thought which have colored and
shaped these differing answers.
It
its
'«
,
serve
growth?
money?
our
some
rents
all
>
historic and revolutionary
In framing the Federal Re¬
the purchas¬
these
purpose
utilize
so.
'
.
re¬
and
How
differ in important respects
those of earlier decades.
My
definite
a
we
attain
we
preserve
in
such
had
should
do
to
v
gress
normal
questions
of
panic
money
Accordingly, 42
W. McC. Martin, Jr.
to
need
i
How
power
the
It
urgent
^ Maintenance of Independence
prosperity?
injected into the overall economic
price-earnings
Stimulating As Embalming
basis.
important factor is
new
None
Act which pro¬
for a widening participa¬
tion in the development of atomic
5%
a
rather
a
Moreover, in the late Summer
1954, the Democrats showed
their violent opposition to such
Energy
been
'.
tain
ing
demand.
a
the
recurrences
as
and
-powers
nials:
answers
of
Government
^crises
economic
we
prevent
the
affairs, the ma¬
jor questions confronting us are
in
large measure hardy peren¬
How do
out
responsibility to prevent financial
do."
achieve
such
of
1907, and out of the thought that
change, but the
our
earliest institutional
to
disasters
"Well, it's true
situation.
of
vided
have
reached, good grade utility com¬
mon
stocks would no longer be
Business
Atomic
earlier.
If the money and credit restric¬
tion policy is reversed
benefits for the few."
other confidence bolstering legis¬
lation
as
Dixon-Yates
and
the
to 41.31,
a
to
stu-
could
that the quest i 0 n s d o n't
In
de¬
r
was our
emerged
answers
grew
and
<
asked
s
crises
Federal
When
h i
material
protection from eco¬
nomic disasters beyond individual
response
was
of
Reserve
System^
which I have the honor to
repre¬
al-
fail
the test, he re¬
plied
simply,
a
35.74
by Dec. 31, 1949 had risen
commu¬
for
The
possibly
its
the
mand
sent,
how
President
Dow-Jones
business
desperation
mass
ques¬
dents
would
industrials
from
he
$1
a
raised
the
business
succession
a
tions.
distant
48
at
it
that
on
heavy in human hardship. It
same
con¬
templation. I could conceive
to
waysposed the
Company at
191/4, paying 90 cents and earning
$1.35, yields over 4.6%, but its
earnings could rise by 1957 even
including
the
new
offering of
now
notion
Calls
control.
the
professor
as
>
exam¬
inations
5% return. Southern
stock to shareholders
up
evening.
In final
at
Rayburn, the House Demo¬
cratic Leader, who stated, among
other things:
superimposed
early
results
them
of
Electric
sums
this
26, paying
$1.30 and earning $1.90, afford a
to
Brazil
Election
a
Some
possible.
Democrats
Democracy. Yet the programs of
could hardly have made our State such organizations as
these, if ever
Department happy.
Then there actually translated
into legisla¬
is the diplomatic defeat
of Dr. tion, would be about as stimulat¬
Adenauer in Moscow which was ing to business as a shot of em¬
most discouraging to the Western balming fluid. For
years in the
powers, and, finally, the intran¬ late 1940's the Dow-Jones Indus¬
sigence of Egypt in the matter trial Average sold at 8, 9 or 10
of buying arms from Czechoslo¬ times earnings. Lately this
pricevakia
gives
further
pause
for earnings multiple has been raised
to the 12-13-14 level which was
thought.
as
vehicles.
West Penn
apocryphal
story
of economics
in a way the theme
an
professor
a
of what I would like to talk about
utilities, I believe that
many utility stocks are in a sound
position today. Characteristically
they are
defensive,
investment
dividend from the present $2.20 to
$2.40 which is in the range of the
a
that
tor-owned
portion of the then proposed
law in
unusual
structure
of
tive
Vulnerability
investor
Act
a
be
were
of
provided
was
Revenue
what
is
taxation
maintain
future.
have witnessed.
Elements
Here
Jere
on
partial
Democrats, about
to
Means Committee, said about this
billion
listed
traded
or
of
York
illness, however,
the
nator.
the
value
S25
of
counter
-
Byfield
New
stocks
other exchanges
over
the
the
on
respect
double
the
Internal
laws
the
the
Chairman of the House Ways and
S.
Exchange alone,
haps
is
dividends which
tive
day
billion
was
the
from
1954.
of
prices.
stocks
present
books
on
one
$14
the
in
agoreap-
stock
of
statute
relief
brought
nized
In
nerable
Eisen¬
attack
which
may come
pact of Presi-
hower's
pre¬
sumptuous
though
continued
the
nity to exhibit moderation, prudence, and understanding.
hostile attitude toward the inves¬
occurs
some
cause
confidence.
have
"Fanciful"
terms
be altogether abolished.
can
There's
Even
Fair
familiar ghosts of the past
Martin
.cycle
Favorable Utilities Outlook
improved
of
return
a
certain
are
to
of
to
many
will not prove
to be an ex¬
about
nervous
Deal
Septem¬
ber
1956
Declares our ability to travel this road
community of drivers who understand time-tested
on
principles. Stating that recent Reserve policy has been devoted
flexibility in combatting both inflation and deflation,
selling.
Seldom
barring war or serious domes¬
social conflict, the road ahead to higher living
or
to
writing that un¬
type of reasoning
much
political
standards is assured.
come
:
in singularly good position.
are
spending
Dow-Jones
By WILLIAM McC. MARTIN, JR.*
Chairman, Board of Governors of the Federal Reserve System
earn
;
policies, and deterioration of country's international position.
possible return of Fair Deal,
utility stocks
the
420.
-
Points to bearish implications in
Believes
30,
they
$35, the shrinkage of
the times-earnings multiple to 12
would bring the Average down to
long luxuriation in climate of unusual confidence. As basic
vulnerability he cites restrictive money and credit
Democrats'
New Answers to Old Questions
June
available,
government
would
elements of
as
latest
Thursday, October 27, 1955
..
$33 and $35.
$32.44. Even if the economy
stimulated by inflation or
heavy-
Mr.
between
months ended
the
were
Stock
12
1955,
were
By ROBERT S. BYFIELD,
Member
the
.
greatly
1940's
life.
That
extended
when
the
role
again
was
in
emergency
Continued
on
page
the
of
19
Volume
182
Number 5476
.
..
The Commercial and Financial Chronicle
(1755)
Interest exempt, in the opinion of counsel, from
T
all present Federal Income Taxation
NEW ISSUE
October 27,1955
L
$415,000,000
The Illinois State Toll
Highway Commission
NORTHERN ILLINOIS TOLL HIGHWAY 33A% REVENUE BONDS, SERIES OF 1955
These bonds
from
are
use
January 1,1995
redeemable prior to maturity, at the option of the Commission,
available for such
any moneys
through the
Due
*
»
of
revenues
purpose
at J033A% and
other than
on a
revenues
at J Q33A%,
declining scale thereafter
on
or
30 days published notice, in whole
in whole
or
on any
date not earlier than January I, 1965,
in part on any interest payment
date not earlier than January, 1961,
described in thk Commission's Official Statement.
as
•
'
-Dated.October 1, 1955. Principal and semi-annual interest (January 1 and July 1, first coupon payable July 1, 1956) payable at the Continental
Illinois National Bank and Trust Company of Chicago, Chicago, Illinois, the Paying Agent. Coupon bonds in the denomination of $1,000,
registrable as to principal only; fully registered bonds in denominations of $1,000, $5,000 and $10,000 and multiples of $10,000; coupon bonds
arid registered bonds interchangeable.as provided in the Resolution. The Paying Agent has made arrangements for the bonds and coupons to be
collected through the following banks: The First National Bank of Chicago,iHarris Trust and Savings Bank, The Northern Trust Company, City
National Bank and'TrUst Company of Chicago, American National Bank and Trust Company of Chicago, Chicago National Bank, and LaSalle
National Bank, jij Chicago, Illinois; The First National City Bank of New York, The Chase Manhattan Bank, Chemical Corn Exchange Bank,
Bankers Trust Company, and J. P. Morgan & Co. Incorporated, in New York, New York; and Bank of America National Trust and Savings
Association in San Francisco, California.
!
~
j
•
.
The Illinois State Toll
of the State of Illinois, is authorized by Chapter 121 of
as may be approved by the Governor.
These bohds, authorized to pay the cost of construction of the first stage of the Northern Illinois Toll Highway, are to be issued under and secured
by the terms of a Resolution adopted by the Commission on October 25, 1955 and naming the Continental Illinois National Bank and Trust Com¬
pany of Chicago, Chicago, Illinois, Trustee, Paying Agent, and Bond Registrar. The bonds together with any which may be issued on a parity
therewith are to be payable solely from and secured by a pledge of the bond proceeds and the revenues of the Northern Illinois Toll Highway. Neither
the faith and credit nor the taxing power of the State of Illinois or any political subdivision thereof is pledged to the payment of the principal of or
Highway Commission,
the Illinois Revised Statutes, 1953,
ssms!
•wsgs
interest
on
the bonds..
.
as
an
instrumentality and administrative
'
.
'ik
agency
amended, to■eonstruct'toll highways at such locations within the State
.
'
J
The present
•
,
'
*
••
.
man;
\
members of The Illinois State Toll Highway Commission are Evan Howell, Chauw
Orville J. Taylor; William Wood Prince; Governor William G. Stratton, ex-officio; and]
of Public Works and Buildings, ex-officio.
E. A. Rosenstone, Director of the Department
Price 100%
(and accrued interest)
1
■
CONSTRUCTION COVERED
.
BY THIS FINANCING
FUTURE
CONSTRUCTION —
These bonds are offered when, as and if issued and received by us and subject to the unqualified approval of
legality by Chapman and Cutler of Chicago, Bond Counsel to the Commission, and Wood, King and Dawson of
New York, and Isham, Lincoln & Beale of Chicago, Bond Counsel to the Underwriters. White & Case of New
York, are Special Counsel to the Underwriters. The offering is made only by means of the Official Statement,
copies cf which may be obtained from such of the undersigned and other Underwriters as are registered dealers
in this
State.
Halsey, Stuart & Co. Inc.
Glore, Forgan & Co.
Kuhn, Loeb & Co. Blyth & Co., Inc. The First Boston Corporation Smith, Barney & Co. Drexel & Co. Harriman Ripley & Co. Lehman Brothers Eastman, Dillon & Co. Goldman, Sachs & Co. Kidder, Peabody & Co. Lazard Freres & Co.
Incorporated
Merrill
1
Lynch, Pierce, Fenner & Beane Union Securities Corporation B. J. Van Ingen & Co.Inc. White, Weld & Co. Allen & Company A. C. Allyn and Company Bacon, Whipple & Co. A. G. Becker & Co. William Blair & Company
Incorporated
Incorporated
Republic Ccmpany Hornblower & Weeks The Illinois Company Lee Higginson Corporation F. S. Moseley & Co. John Nuveen & Co. Stifel, Nicolaus & Co., Inc. Dean Witter & Cow
(Incorporated)
Incorporated
(Incorporated)
Bear, Stearns & Co. Blair & Co. * C. J. Devine & Co. Equitable Securities Corporation Ira Haupt & Co. Hemphill, Noyes & Co. Paine, Webber, Jackson & Curtis Phelps, Fenn & Co, R. W. Pressprich & Co. -
Blunt Ellis & Simmons Alex. Brown & Sons Central
Incorporated
Salomon Bros. & Hutzler
Shields & Company Stone & Webster Securities Corporation
John W. Clarke & Co. Johnston, Lemon & Co. Tripp & Co., Inc. F. S. Yantis & Co.
American Securities Corporation Barr Brothers & Co.
Incorporated
R.S. Dickson &
Company Estabrook & Co. First of Michigan Corporation Hallgarten & Co. Carl M. Loeb, Rhoades & Co. W. H. Morton & Co. R. H. Moulton & Company Reynolds & Co. The Robinson-Humphrey Company, Inc.
Incorporated
Incorporated
L. F. Rothschild & Co.
G. H. Walker & Co.
,
Adams, McEntee & Co., Inc.
Auchincloss, Parker & Redpath
Bache & Co.
Bacon, Stevenson & Co.
Baxter, Williams & Co. ; Braun, Bosworth & Co.
Incorporated'
Byrne and Phelps
Incorporated
City Securities Corporation Clark, Dodge & Co. Julien Collins & Company Dick & Merle-Smith Dixon Bretscher Noonan Inc. Dominick & Dominick Francis I. duPont & Co. Eldredge & Co. Folger, Nolan-W. B. Hibbs & Co., Inc.
Incorporated
Geo. B. Gibbons & Company
Fulton, Reid & Co.
Hayden, Stone & Co.
Hirsch&Co.
W.C. Langley & Co.
McDonald & Company
Mullaney, Wells & Company
The Ohio Company
Raffensperger, Hughes & Co.
Incorporated
Incorporated
Roosevelt & Cross Schmidt, Poole, Roberts & Parke Schoellkopf, Button &Pomeroy, Inc. Scott, Horner & Mason, Inc.
Incorporated
.
Shearson,Hammill&Co. F. S. Smithers & Co. Stern Brothers & Co. Stroud & Company Tucker, Anthony & Co.
"
,
Incorporated
8
The Commercial and Financial Chronicle
(1756)
Electric Manufacturing Company—Card
Marvin
Thursday, October 27, 1955
...
memorandum
Securities
—Aetna
Corporation, 111 Broadway, New York
Also available is an analysis of Copeland Refrigera¬
COMING
6, N. Y.
Corporation.
tion
Mid
Continent
80 Wall
Uranium—Report—General
Investing
Minneapolis
Honeywell
EVENTS
Corp.,
In
Street, New York 5, N. Y.
Regulator—Report—Thomson
Montgomery
Atomic Energy Review—Now
120
Broadway, New York 5, N. Y.
&
Office
TMT
Broadway, New York 5, N. Y.
Co.—New
Cement
Conventions
issue
United
are
—
Bulletin
—
views—Lerner
&
Co., 621
Maier
&
Co.,
&
Co.,
30
Co.,
Corporation
—
Nov.
Card Memorandum
P
—
1955—The
First
Association
the
at
35th
Green¬
(New York City)
Bond
Club.
9, 1955
&
Nov.
Co., 165 Broadway, New York 6, N. Y,
Club
Luncheon
S
of
New
Meeting at the
*
(New l'ork City)
Division
dinner
N. J.
of
Association
Exchange firms annual
the
at
15, 1955
Hotel
Statler.
(New York City)
Investment
Association
of New
York annual dinner at the Wal¬
Westinghouse Air Brake Company—Report—Harris, Upham &
dorf-Astoria
Co., 120 Broadway, New York 5, N. Y.
Hotel.
Nov. 16-18 (New York, N. Y.)
Association of Stock Exchang#
Pine
Firms meeting of Board of Gov¬
ernors.
Nov.
19, 1955 (New York City)
Security Traders Association of
Stocks—Comparative figures at Sept. 30,
Corporation, 100 Broadway, New
Boston
NSTA
York 5, N. Y.
New
1955
of Stock
Exchange Place, Jersey City 2,
New York 6, N. Y.
way,
Sulphur
of Invest¬
Group
meeting
Bankers
Gas—Analysis—E. F. Hutton & Company, 61 Broad¬
New York City Bank
at
Va.)
Bankers
Women's
Street, New York 5, N. Y.
Natural
W.
Nov. 2,
Siskiyou County, City
Inc.—Circular—Pearson, Murphy &
15
(White
1955
annual
Port
10
Ltd.
Stanley Heller
28-30,
ment
party
brier.
of Commerce of
Co., Inc.,
cocktail
Southeastern
S.
of New
Schwartz's
at
Club.
Springs,
West Hudson National Bank—Circular—C. Herbert Onderdonk
discus¬
of Bank Rates, and
analysis of Business Results and
Outlook, and analyses of Mitsui Chemical Industry Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas Co., Ltd.,
Outlook
Oct.
York
Lithium
States
Julius
sions
Tokyo Electric Power Co.,
Ferry
—
"Nomura's Investors Beacon"
the Lunch
Square, Boston 9, Mass.
Trailer
Association
Restaurant;
Ill
Inc., 50 Broad Street, New York 4, N. Y.
Analysis — Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
same
Co.,
Hall, Yreka, Calif.
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
the
&
Siskiyou County, Calif.—Economic study—Coordinating Coun¬
Industry—Analysis—Harris, Upham & Co., 120
Taxation
Williston
R.
Inc.—Report—Eisele & King, Libaire, Stout
cil of the Chambers
S.
J.
luncheon
York
Co., 50 Broadway, New York 4, N. Y.
Riverside
N. Y.
Japanese-U.
—
& Co., Inc.— Analysis — Hill Richards
Spring Street, Los Angeles 14, Calif.
Candidates—32 issues with appreciation possibili¬
ties—Bruns, Nordeman & Co., 52 Wall Street, New York 5,
and
Analysis
Pryne
Comeback
Market
—
Pinellas Industries,
ington 7, D. C.
in
Ward
(New York City)
1955
Investment
Broadway, New York 6, N. Y.
booklet—Harris, Upham & Co.,
Atomic Reactor Diagram in four colors with portfolio informa¬
tion on Atomic Fund as of June 30, 1955—Atomic Develop¬
ment Securities Co., Inc., 1033 Thirtieth
Street, N. W., Wash¬
Entertainment
Oct. 28,
Pacific—Analysis of "Agreed Plan"—Vilas & Hickey,
5, N. Y.
Wall Street, New York
49
Field
Mc-
&
Kinnon, 11 Wall Street, New York 5, N. Y.
Missouri
Investment
,
Notes
New
York
cocktail
party
and
dinner dance at the Hotel Com¬
York
City Bank Stocks—Earnings comparison for third
quarter 1955—Laird, Bissell & Meeds, 120
Broadway, New
York 5, N. Y.
modore.
Nov. 27-Dec. 2,
1955
(Hollywood,
Florida)
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National
Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation
Bureau, Inc., 46 Front Street, New
York 4, N. Y.
Bowling League Standing
(Capt.), Gold, Krumholz, Wechsler, Gersten.
Barker (Capt.), Bernberg, H. Murphy, Whiting, McGovan__
26
Security Traders Association of
24
New
World
Manson
21
the Bankers Club.
Time
Chart—Time
differences
in
100
over
SECURITY TRADERS ASSOCIATION OF NEW YORK
Security
the
Depart¬
ment, Manufacturers Trust Company, 55 Broad Street, New
*
American
Express Company—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Bymart
Wall
Tintair, Inc.—Analysis—General
Street, New York 5, N. Y.
Investing
Corp.,
80
Co.—Memorandum—Doyle, O'Connor
South La Salle
Dowa
Mining—Analysis
5 Point Club
in
current
Securities
Equitable
Gas Company —
Analysis
Broadway, New York 5, N. Y.
Fram
Corporation
Analysis
Street, New York 4, N. Y.
—
St.
General
—
Limited—Analysis—L.
James
H.
—
Ernst
&
Company, 120
Hentz
&
Co.,
60
Beaver
Oct.
S. Jackson &
Gas—Analysis—Ira Haupt & Co., Ill Broadway, New
^ement Company
Bulletin
Also available
Boettcher and Company,
828 Seventeenth
Street, Denver 2, Colo.
®^ec^ric Light &
Power—Memorandum—Kidder, Peabody & Co., 17 Wall Street, New York
5, N. Y.
—
—
Lakey Foundry
Corporation—Bulletin—De Witt Conklin Or¬
ganization, 100 Broadway, New York
5, N. Y.
|
Leece-Neviile
Company—Analysis—B. W. Pizzini & Co., 25
Broad Street, New York
4, N. Y.
24-27,
Annual
1956
Meeting at
(Palm
Springs,
Calif.)
18
National Security Traders Asso¬
ciation Annual Convention.
17
14
Nov. 3-6,
14
1957
(Hot Springs, Va.)
National Security Traders Asso¬
ciation Annual Convention.
>
13
13
11
N. Y. Bond Women
200 Point Club
To Hear at Luncheon
Jack Barker
Barker
Mrs.
It
will
be
committee
the
to
avoid
Study Clearing Plan
The Board
American
of
Governors
Stock
the
Exchange
formation
of
cial committee to formulate
designed
of
to
permit
American
the
of the
a
Margaret Rudkin, Founder
Manager of Pepperidge Farm,
Inc., will be the guest speaker at
a
pro¬
Stock
Ex¬
Clearing Corporation to
deposit securities in lieu of cash
meet the
committee
corporations' require¬
is
to
be
large
amounts
member
revenue
of
purpose
devise
a
the
plan
to
necessity of sterilizing
firm
of
member
capital
producing
in
and
non-
a
a
luncheon
composed
of
Henry Badenberger, Francis I. du
Pont
&
Co.; Harold Goodbody,
Goodbody &.Co.;. William Hoff¬
of
the
the
Bankers
Club
at
Wo¬
York, at
12:15
p.m.,
Wednesday, Nov. 2.
G. E.
Davenport V.-P.
Of Jack M. Bass Co.
NASHVILLE,
Tenn. —C.
Evan
Frank
Boyce Now
With John R. Boland
Frank
Boyce has become asso¬
Davenport
ciated with John R. Boland & Co.,
Co., Inc., 315 Fourth Ave., North.
Jack M. Bass, Jr. has become
City,
associated
dealer
has
been
elected
a
Vice-President of Jack M. Bass &
with
the
firm,
in
the
trading department.
Inc., 30 Broad
in
Street, New
charge
relations.
formerly
Hoffman &
Co.;
Form Stein, Bothwinick
McCarthy,
Merrill
Lynch, Pierce, Fenner & Beane;
Stein, Bothwinick & Co., Inc.
Ben Pollack,
Josephthal & Co.; has been formed with offices at
Edward T. McCormick, President 40
Exchange Place, New York
of the Exchange; Eugene Gaiser,
City, to engage in a securities
an executive of the
Clearing Cor¬ business. Officers are Benjamin
man,
meeting
men's Bond Club of New
avenue.
mem¬
change
to
the
an¬
spe¬
ments for the Clearing Fund. The
Leaseholds, Inc.—Circular—Singer, Bean &
Mackie,
Inc., 40 Exchange Place, New York
6, N. Y.
is a circular
on Pacific
Uranium Mines Co.
York
Serlen
A. S. E. Committee to
bers
Company, Ltd.,
(New York City)
and
gram
Street, West, Montreal, Que., Canada.
wood Beach Hotel.
Dec. 2, 1955
18
Ernie Leinhardt
nounced
York 6, N. Y.
Gulf Coast
Jack
21
& Co., 135
issue of "Weekly Stock
Co., Ltd., 6, 1-chome, Kabutocho, Nihonbashi, Chuo-ku, Tokyo, Japan. Also in the same
issue are brief
analyses of Mitsubishi Metal Mining and
Furukawa Mining.
132
(STANY)
Inc.
follows:
Street, Chicago 3, 111.
'.Bulletin"—Nikko
Frobisher
as
Points
Hank
Campbell Chibougamau Mines,
Ltd.—Analysis—Sutro Bros. &
Co., 120 Broadway, New York 5, N. Y.
Cochran Foil
York,
(Capt.), Jacobs, Barrett, Siegel, Yunker
Krisam (Capt.), Farrell, Clemence, Gronick, Flanagan_____
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson, Smith
Donadio (Capt.), Brown, Rappa, Seijas, Demaye
Leinhardt (Capt.), Bies, Pollack, Kuehner, Fredericks
Bradley (Capt.), C. Murphy, Voccolli, Rogers, Hunter
Growney (Capt.), Define, Alexander, Montague, Weseman._
Topol (Capt.), Eiger, Nierrian, Weissman, Forbes, Klein
Leone (Capt.), Gavin, Fitzpatrick, Valentine, Greenberg___
Kaiser (Capt.), Kullman, Werkmeistfer, O'Connor, Strauss.,
countries
York 15, N. Y.
'*
New
Serlen
United States—International Banking
*
of
of Oct. 20, 1955 is
as
Team
throughout the world as compared with Eastern Standard
Time in New York
City; includes map of standard time vari¬
ations in
Association
Traders
Investment Bankers Association
annual
Convention at
Holly¬
of
of
Mr.
Boyce
York
trading- and
&
Boyce
was
Co.
William
Michael
W.
poration.
UNITED STATES
LITHIUM CORP.
and
Bothwinick and Leonard Stein.
EMPIRE PETROLEUM
We make
•
dependable markets in 385
flonntra Jiecuxittes
Public Utility
•
®u., %t&.
•
your
Member
Natural Gas and
CO., INC.
DEPENDABLE MARKETS
(a Colorado Corporation)
are
N.A.S.D.
as
Industrial Stocks
to
merit
Material and Consultation
ask
attention
SITUATIONS"
UNUSUAL GROWTH
Broker and Dealer
orders & inquiries invited
believed
"SPECIAL
YOUR
with
POTENTIALS.
broker.
on
HA
2-
2400
Members: N.
74
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
Julius Maier Co., Inc.
Japanese Stocks and Bonds
Troster, Singer & Co.
without obligation
NY 1376
61
Broadway, New York 6, N. Y.
BOwling Green 9-0186
Tel.:
Head
Office
Tokyo
15
Exchange Place, Jersey City 2, N. J.
BOwling Green 9-4058
DEMPSEY-TEGELER & CO.
HEnderson 5-1300
Teletype JCY 798
Number 5476
Volume 182
Commercial and Financial Chronicle
the
; .;
(1757)
spect
A
Utility Survey of
to
the
depreciation.
of
use
*
accelerated
Second, several, companies re¬
plied that in the absence of regu¬
*
lations
Another
Accelerated Depreciation
Group
The second
interest
By RICHARD A. ROSAN*
the
of
companies
to
as
result of
a
he conducted,
survey
a
the
utility companies take acceleration depreciation and some
don't, Mr. Rosan gives figures resulting from his investigation.
Points out primary reason why companies adopted accelerated
Last
the
Gas
and
in
counts
Utility
Ac¬
Chicago, I presented
a
Hate Problems presented
paper on
by the
Electric
cilities
which
so-called
Ac¬
standard
celerated
De¬
maintenance
preciation
un¬
ority
der
Pi
the
v
e
of
1954
n
e
u
that
in
fa¬
the
event
emergency.
indicate
received
the following:
and
plant
years
for
1954
minor
are
adopting
and, accordingly, there would be
celerated
a c
no substantial advantage in adopt¬
ing accelerated depreciation.
depreciation,
the
R.
I
since
and
had
Rosan
A.
im¬
pression that this was not neces¬
sarily the popular viewpoint, you
can imagine I was most pleased to
receive your
vitation to
Chairman's kind in¬
on this problem
speak
again.
I
While
a
am
great believer in
having people express their views
in open discussion, I likewise real¬
ize
there
that
considerable
is
find out the
views of other people. According¬
merit
trying
in
the
through
ly,
offices of
good
undertook
Columbia
at
survey
a
more
reverting back to straight line
depreciation at any time.
It is
of
answer
changing to straight line
misreading
For
the
of
sake
This
either
indicate
of
point
company
a
the
to
straight
sum
of
Second, the recording of addi¬
tion was a rate base item.
Third, several regulatory bodies
have
a
Fourth and
to encourage investment in
gress
that this last
for
I
facility.
new
is
and the cost of this would be out
of
line
the
with
particular
benefits
This is not
an
the
to
justified in recording
higher depreciation expense.
We
another very
to
now
come
interesting statistic, namely, how
record the
to
tax deferral result¬
from the use of accelerated
depreciation.
Twenty-four com¬
ing
panies answered that they would
record
the
tax
account;
reserve
indicated that
record it
as
deferral
seven
they
indecision
Congress
by
were
Continued
on
buy, any of
1,000,000 Shares
the
and
possibility that it might
be repealed.
A
detailed
one
cific
to
indicated three
for the
reasons
The
first
reason
4.36% Redeemable First Preferred Stock
not
depreciation.
that
was
Company
spe¬
decision
accelerated
use
Pacific Gas and Electric
reply received from
company
Par Value $25 per
the
on
by questionnaire on this subject so
Share
basis of their analysis of economic
that I could present to you
trends, lower tax rates could not
lem
gentle¬
birds-eye view of this prob¬
men a
be
expected in the future.
in the event of
ever,
by the industry.
seen
as
ternational
Some Figures
the
might be interested in some
figures — there are not
You
these
of
if you have the back of
an envelope handy, you might like
to jot down
the results of this
survey.
The statistics are based
on 120 replies to the questionnaire.
The answers represent the views
many, so
be
may
a
establishing normal earnings
for future
measure
taxes.
Thus,
"ruinous."
taxable
time
different
tion
would
to
Copies of the Prospectus may be obtained from any of the several under¬
Stales in which such underwriters are qualified to act as
legally be distributed.
writers only in
in¬
might
dealers in securities and in which the Prospectus may
be
was
of
rates
have
a
reason
The second
that
as
profits
excess
lower
this
at
come
Price $25.50 per share
there is
that the present
"base period" for
emergency,
possibility
time
How¬
future in¬
a
deprecia¬
be
Blyth & Co., Inc.
for
used
large representative group of
property constructed prior to Dec.
companies throughout the country.
31, 1953 and property constructed
of
a
interest are:
The first figures of
decided to use
under
ciation
companies have
Accelerated Depre¬
120
the
of
52
the
Revenue
1954
Code; 33 have decided against it;
and 35 have indicated that they
were
undecided.
undecided,
19
the
Of
were
using
form
some
35
that
toward
lean
accelerated
of
depreciation.
Only three of the
remaining 16 expressed a positive
inclination
against adopting ac¬
depreciation.
celerated
Reasons For
after
the
Jan.
it
older
rate
it
that
is
adopt
to
a
depreciation
accelerated
of
form
decided
have
cash
generates
thereby
reduces
logically
nancing
fi¬
Speaking
requirements.
for Columbia Gas System, we
feel
that there is small choice offered
utilities
to
since
it
which
reduces
expanding,
are
to
some
extent
the need for equity financing
and
this extent may be
extremely
beneficial to existing stockholders.
to
These companies generally view
the
tax
deferral
as
an
interest-
that
follows
have
a
lower
tion
new
accrual
rates.
Finally,
the
Lehman Brothers
I
Stone & Webster Securities
First California
the
all
tax
For these
taking too much of
acceleration
to
reasons
reasons
minds
decided.
termined
these
are
some
un¬
of
undecided have de¬
await
F. S. Moseley
Blair & Co.
the
Davis, Skaggs & Co.
Hill Richards & Co.
have
decided
a
amount
of
C.Allyn and Company
require.
loan
from
the
government,
gesture offered by the govern¬
as
a
means
of stimulating
a
ment
*A
the
Gas
paper
Annual
presented
-Association,
by
of
Mr. Rosan at
the
American
Los Angeles,
Cal., Oct.
Convention
18, 1955.
Spencer Trask & Co.
Shields & Company
Baikie & Alcantara
■
Clark, Dodge & Co.
A. G. Becker & Co.
Bear, Stearns & Co.
Incorporated
Coffin Sc Burr
,
Incorjxnatel
Equitable Securities Corporation
Incorporated
ac¬
of accele¬
use
rated depreciation would
Drexel & Co.
(Incorporated)
Lester, Ryons & Co.
Estabrook & Co.
Hayden, Stone & Co.
Laurence M. Marks & Co.
Hooker & Fay
R. W. Pressprich & Co.
E. F. Hutton & Company
Riter & Co.
L. F. Rothschild & Co.
Finally,
undecided
many
companies are
by reason of the un¬
certainty of the treatment of this
Salomon Bros. & Hutzler
subject by regulatory
free
Incorporated
Bateman, Eichler & Co.
J. Barth & Co.
Crowell, Weedon & Co.
Central Republic Company
Alex. Brown & Sons
upon
Weeden & Co.
Reynolds & Co.
Irving Lundborg & Co.
Wood, Struthers & Co.
regulations
counting detail the
Sutro & Co.
Paine, Webber, Jackson & Curtis
& Co.
A.
effect
Carl M. Loeb, Rhoades & Co.
Lee lligginson Corporation
Wertheim & Co.
the regulation
by the Treasury Department. Such
may
W. E. Hutton & Co.
Ilornblower & Weeks
Hemphill, Noyes & Co.
Langley & Co.
present in
who
addition,
are
to
those
W. C.
Incorporated
In
those that
also
are
of
Dominick & Dominick
Shuman, Agnew & Co.
Incorporated
of
some
Elworthy & Co.
Brush, Slocumb & Co. Inc.
the
was
risk to adopt
a
ilallgarten & Co.
1
to
the
depreciation.
Undoubtedly,
the
power
on
had decided that it
company
same
his
in
saving
Walston & Co.
Schwabacher & Co.
Company
Incorporated
Mitchum, Jones & Templeton
depreciation, but that
Merrill Lynch, Pierce, Fenner & Beane
Corporation Union Securities Corporation White, Weld & Co.
William R. Staats & Co.
do
Lazard Freres & Co.
Kidder, Peabody & Co.
ulatory commission that he
thought the company should take
would
Glore, Forgan & Co.
Eastman, Dillon & Co.
Smith, Barney & Co.
Goldman, Sachs & Co.
had been advised by an
important staff member of a reg¬
accelerated
& Co.
Incorporated
company
and
money
new
under
plant a somewhat
higher rate, there would be diffi¬
culties in determining deprecia¬
pass
primary reason why com¬
Since
llarriman Ripley
Corporation
rate for deprecia¬
plant would
and
customers.
The
panies
1954.
composite
tion,
he
It
1,
The First Boston
Dean Witter & Co.
October 25, 1955.
I
think
that
that
rather completely the
against
and
bodies.
summarizes
reasons
indecision
with
for,
re¬
Tucker, Anthony & Co.
in
a
tax
companies
going to
part of restricted sur-
company.
some
one
feel
offering of these shares for sale, or an offer to buy, or a solicitation of an offer to
such shares. The offering is made only by the Prospectus.
concerning the wisdom of the law
valid
a
It may be
industry
unregulated
an
Third, a feeling on the part of
some
companies that there may
be
out
point
might
reason
regulated industry.
that
might
depreciation would record any ad¬
hope it is the latter.
would
nullify the stated intent of Con¬
accelerated
adopting
most forceful rea¬
a
tional depreciation expense
cash savings available for
plant additions.
companies
I
company,
expense,
;,v
son—namely, to record the addi¬
by the survey is that none of the
of that
to record
not
depreciation
and
the
questionnaire.
or
orders
issued
additional
The next essential fact disclosed
law,
would,
fact, lead to the logical conclu¬
deprecia¬
sion that the additional
porary
new
would "jeop¬
In
plant investment.
net
tional depreciation expense
companies
the
additional de¬
other words, it would tend to re¬
duce a net original cost rate base.
can
line
a
the
the
ardize"
that elected to
year's digits
method gave the following pri¬
mary reason: greater depreciation
in the early years of the
asset,
with the result of greater tem¬
its reason for doing so,
would
back
The
use
which indicated adoption of
the sum of the year's digits meth¬
later date if necessary.
depre¬
not fully
that this is rather
method.
com¬
pany
a
assume
some
shift
of
ease
esti¬
an
the
is
property
at
od
flexible treatment and the option
at
require
closely related to the problem of
salvage as well as to the fact that
under the declining balance meth¬
t
interesting to note that one
not
avoids
ciated. I
balance
First, to record
preciation expense
salvage.
the
for
-
First, the method permits
balance
The primary reasons
given for this decision were:
Second, the use of accelerated
depreciation would present diffi¬
cult
plant accounting
problems
to
the American Gas Association, we
given
declining
the
were:
misconception
additions
subsequent
adopting
method
reasons
declining
depreciation, expense on
their books.
in
unsatisfactory
situation
which
would
develop
under the sum of the year's digits
when the digits are exhausted but
This would indicate
primary
od gave as
Against It
anwers
First,
utili¬
of
the
to
superi¬
the
were
last
spring
to
primary reasons for not
adopting accelerated depreciation
strong
a
position
and
defensive
producer in
a
national
The
of
view
ties
living
of
Reasons
In
The
increasing
an
method.
the
does
of
method
rather overwhelming preference
for the declining balance method.
essential
so
use
a
e
the fact that I
vor
are
of
as
Code.
took
new
would
ac¬
Fourth, some companies sug¬
gested that the declining balance
undecided
preference to the declining bal¬
ance
of insuring the
production fa¬
as a means
investment in
the maintenance of
of
use
a
the economic growth of our coun¬
try and
they
mass
be prohibitive.
mate
accelerated depreciation indicated
are:
spring, at the conference of
were
digits meth¬
apply to
method
11; and one
undecided.
Three
whether
to
as
Third,
with
was
companies which
(1) there would be no advan¬
tage because plant additions are minor;
(2) accelerated
depreciation makes plant accounting difficult, and (3) there
is feeling that Congress might repeal the law.
ing accelerated depreciation
popular with 40 com¬
the sum of
the year's
company
depreciation is that it generates cash and reduces new money
financing requirements, while primary reasons for not adopt¬
basis would
most
panies;
digits method
not
They suggested that the
accounting and clerical work re¬
quired to compute and record de¬
preciation on an individual unit
adopt
the declining bal¬
method of computation was
ance
some
of the year's
counts.
indicating
accelerated
depreciation,
Asserting that,
sum
would
od
the
decision
a
Figures
of
group of figures
are:
With
Attorney, Columbia Gas System
the Treasury Depart¬
ment, it was their evaluation that
by
ditional
0:
G. II. Walker & Co.
page
34
The Commercial and Financial Chronicle
(1158)
3,0
Personal income is
X
,
at $272
construction
billion.
Philosophy Behind Them
Vice-President of the United States
'
#
Which
Administration's basic economic philosophy
has-been .thoroughly vindicated by -results;
Administration's policies have been
course
in
Maintains record proves
good for the
As elements of strength assuring
wage earner.
1
f
>
per¬
issue
ical
2S"a ari
as e $ s ential s Britain's putting of her
availability, of adequate reserves, and .ability
balance accounts *wiJr.the dcllar;: Declares that after prov¬
house in order,,
to
ing, herself competitive, she must get from U. S. right to
;...
compete', By1 eliminationi of export-import gap.
i ■}
Sterling,1 cannot become, freeiyr * ^ccessive>Ameracaw Admihtstraconvertible jjntfr ..w^ can be eon-. 4ions- have ^provided, free,V Jarge
of
fident
w
maintaining
>
*•
In
-
.
1: than
I d
con-
would have socialized agriculture,
siderthe
leadership
of
Eisen-
the
minisirau
compulsory health insurance
^
would have socialized the medical profession.
An expansion
nn
n
the Federal
of
faJri
i
tional
tions
M.
Richard
Nixon
1
r e
a
a-
greatest
be
may
con¬
doubt
that
but
an
over-
whelming majority of the Ameri-
people approve the diplomatic
military policies which got
can
and
the United States out of one war,
out of others, and which
have helped to raise the hopes for
kept
us
the people of the
higher than they have been
any
time since the end of
among
peace
world
at
World War II.
aid
An
which
th^f Jw
•
system.
Ton
lions of Americans with
States.
hopes for
are
family made
one
We must not become
should
know
to
turn
we
more
conser-
vative policies. This was a grave
question in principle, and it was
vided
into
groups
the
special
cliques." : I
hostile
d
a n
of
or
better
no
philosophy
statement
There
are
that
contend
others
no
who might
accomplishment
Administration
the
is
more
significant than bringing to Washington the leadership which has
maintained a standard of honesty,
integrity, and efficiency in gov-
a
difficult question politically,
we like it or not,
we
recognize that the faith of
millions
of Americans
in
which
has
terribly shaken by the great depression of the Thirties.
ernment seldom, if ever, exceeded
in our nation's history.
They
tonight I wish to discuss
policies which may not be as
spectacular in the public mind
believed that conser¬
policies had cause the
depression.
They were convinced that
those policies could not cure
and which are more
it.
vative
But
which
but
controversial,
just
are
important
as
And
turn
those I have named.
as
I speak
the
of
of the economic policies
Administration
and
the
philosophy behind them.
while
that
these
policies have
been
put into effect by a Republican Administration they are
not
in
partisan
character.
conservative economic
The
philosophy
of the Eisenhower Administration
is supported by millions of Democrats as well as Republican, and
we
proud
are
of
the
fact
that
Democratic
bring
leaders, like Senator
given such splendid
support to the President in this
see
what these policies
why they
were
was
difficult
more
portant than the
no
nor
You know what
We
we
aii-ume
If we had continued the spend-
ing and tax programs of the previous Administration $40 billion
•An
address
by the Vice-President be-
I are the Annual Meeting of the New York
Group of
ciatlon
Oct.
19,
the
of
Investment
America,
Bankers
New
1955.
York
Asso-
City,
interest
does
of
are
those who
any
of
this
tion
be
a
poll's, aPnd
the
wage
he
;
wants
all
more
earner
to work
Second
he
jobs
than at any
no
job.
than at
currency
can
five
tondW
^TeoTer
wl
^e bellf^e ^^
the rest
vears
I
the world
of
frnrnTTnitpH
ZA
?
binion
goods and
more
tb'",0"t mh°_a
.
c<ill
Thl-_
vnil
>
Rl1+
'
nnf
than
of dotthat
fnrtfPt
incurred
h
h
t
hae
sources
*
able
been
0ar.
ft,'Sen
"t
^toeTgnTurchas^
J
TT
J*
q
have
everv'COuntry
.
been
in
al-
strictly limI
think that you will agree that, as
....
•*
a
basis for long-term planning,
the
U. S. Obligation
is still far too
gap
wide for
comfort.
There
wants
;high wages.
higher
wages
time in history.
Question.
pay
U.
two
are
aspects
he
wants • purchasing
His wages will buy more •
goods than at any time in history.
neaceful relations bepeaceiui relations he
abor and management.
I
wil t arl exPer^ comment
what has
other
put
.
The economic relations between.
n.
.Tfft ?
•
.
of saying that having
house in order we must
way
our
two countries have in recent
been troubled
by such
,our
S IS
i^
?^P
'
this
In the first place the
Third
wants
wants
to
K., and other countries t.iat go
power.
tween
Last
rapidly.
■npt'
°
jobs available for .needs.
want
mounting
f"311/*
in which our current doUar earnmgs- are madequate to meet our
,
a
is
big problem for
of sterling because not even the
most optimistic of us can foresee
the possibility cf rapidly acquirmg sufficient reserves to
carry
us through a succession of years
great
time in history.
These
on keep it so.
months
measures as the increase in your
tariff on bl«ycl,es an^ fbeud®c,si°?1
to ignore the low British tender
for the Chief Joseph Dam project,
Thim?s
-like
questions
this
I
for your
know,
are
ownTcision.
The second is that t WOuld onlv ask that as and
having proved ourselves competi- when similar problems arise, in
tive, we must expect from you' future you wm bear in mind the
"There were fewer strikes and, the right to compete. I am well
vjtaj importance which we, in the
less time lost through strikes aware that in the last five years
rest 0f the free world, attach to
in 1954 than at any time since
the U. S. has put into the rest securing some assurance that we
j.
happened
in
that
spect-
re-
,
r
•
policies de¬
signed to encourage the ini¬
tiative, the dynamism, and
the ingenuity of the Ameri¬
can
people.
,
Looking back,
found:
First
-
,
We adopted fiscal
admit that
Jzi ahiftspending were at an
nign.
^
the economy.
We got the government out
of business rather than
put¬
We cut spending.
We cut taxes.
im¬
policy.
the
What
He
ne
from
followedtby'
®rte^ dealf' and all: the other
Finally,
;
it will deserve to be.
ting it in.
are
confronting
the President and his Cabinet in
Here is what
in
year /195^
appropriated ;$1.7
billion 'more dollars for foreigol
economic aid. Overseas-,military
expenditure iis, 1 fear;: likely , to
be a burden ori both your^ and
our taxpayers-for many years to
come and the flow of private investment overseas continues to
grow: Nevertheless both aid and
military expenditure '.may* sood
,
policies, not in terms of
will be defeated at the
happened.
removed ' controls
us
majority of the American people
Cabinet.
,
one
the field of economic
debated
was
right in principle and that if they
were
right
in
principle
they
would in the end prove right
politically.
,
decision
more
on
problem
tern a chance to work. And we
based that decision on our faith
that conservative policies were
put into ef¬
January of 1953
policies might
another depression.
not
There
fect.
In
such
let
fisCal '
has
that there is no really satisfactory
solution to the problem other
cles and by support from such than our being allowed to fight
external sources as the Interna- for our dollars in your own do^
]tional Monetary Fund.
:
*.
.
the
In
Congress
hope
what is good for leaders o$ busi- to remain
convertible for long
ness, or leaders of labor, on lead-,unless there is reasonable assurers of government, but in terms of ,ance that
by one means or anwhat is good for the 65 million other it can balance its accounts
American wage earners. Any Ad-, with the U. S. dollar.
This is
ministration
whose
policies are particularly important in the case
Finally a decision
made.
In essence, here is
what it was. We decided to give
the free American economic sys-
it is first necessary to review how
and
re¬
a
was
Their Genesis
To
that
tirely>
e w
was
It isi our hope however that
we shall be able to solve it by
building up our gold and dollar
reserves by prudent internal poli-
Administration's
want?
;
field.
feared
th°^
economic
<
the point
prove
examine
in
have
Byrd,
to
The
the
May I emphasize at the outset
they
l-y< a f
weeks; it;
os.
made
>
Earner
to
Now
conser-
vative economic policies had been
.
.
What Is Good for the Wage
Whether
must
with thfe United States: during the
period.:>?.
-'J..; ft;
perimeht tefOf course,'it. will be a long time
minated, after. beforo.%these'sources dry up: eri4ex-
■ '■
1S gomg to
of
America great than this one.
.
of
ely.
When this
f o h
Harcotirt
ftpxn; fttfiese.iTdollars, there
have5 been, a deficit of vat
$i7 biIlioru on its account^
of adequate reserves with which ^ amount of new net lending
-to tlde over the periods of trade overseas. It is for this reason
slackness and temporary reces- that we are so anxious to see
sions which affect even the healto- s0^ more permanent soiution to
4est currency and economies. This ghat .^e^^coiSSS8^-
nation di-
a
factions
^
would
^The second is the availability Jj*s-
of milthe; same
happy life.
up
full and
a
question we had to answer
was, should we continue the program
of
our
predecessors
or
Xl_
fited
pre- r least
owD
which
L.M.,
<
bllieVes' w5^IkJh{?hft 4?e conff«o^
0ur
hotS shS be in
AdmiiJstration
J _]
:SP e™alis of> economic isola- ^noi|^ndrthe WU ^wluch^
philosophy of his Administration
"ThJ
T
rest, of the,, world; hacL not ;bene-
many cases unecoan endless series of
Pr(>hibitions. ? Quota restrictions,
•
A—*
.con-
^.were in
oonl^fi
J
A
when sterling
nom 1C'
would have inevitably nationalized the production and distribution of power in the United
The
repeti-
the emergence
a number of embattled campst,
OIP,living- to out down .its
is.. imports and protect industries,
'in
va«
clooS ^
f ioSg" +Ko
ic
exiror
n,fnfr J? business
fau
mo
the nation's power resources, ineluding that of the atom,
:
Viscoorrit
;
development of
of
program
r af
program
federalized
have
would
i.lnt
,
vested* abroad $5 ^ -million ;het.
You will see 'therefore that if the
a
on
\m a t u t
ft
■
u
Iaah
™
education
to
public school
A
dis-
some
adequate job.
an
the
agreement on this issue, there is
little
ing
its
as
tribution.
While there
where private builders were do-
Cam
vertible
.
for the country
#&.-»■
r«
iifrv aL wSf SJiS:
pubbc housing program into areas
lri
is not good
ness
w
which
program
.busi¬
and the American,
investorrtftimfor^ulated nsl have said, by the;ihembers of yo^
to-
more.
<
trad e
became
\
.
If what is good fdr
means.
v»/^ t
of .the
ti
.
.
wo u
quantities of; military!:; equipment
eventsofl947
a
.
ni
world
would have been added to the
'national debt in four years.
-x
third year in'office.
*
; •
Controls shackled the economy
I What
have
been
tiie: major and our predecessors had urged
\ accomplish-^ that more should be added.
ments during < • In various messages to the ConNow I realize that the business*,
that, period ?': gress and in public statements, I
an
Administration'v isI w o u 1 d * officials of the previous Admin- label on
imagine t h a t istration had advocated:
; supposed to be the kiss of deathmost people
The Brannan Farm Plan which politically. But let's see -what;.itu
In just two months, the Presiflent
will
have
completed his
■\*
■* ran
disastrous-
recent statement,
James Carey said, <4We are aghast
at the self-serving, greedy tacticsof
the
present
Administratidh.
keyed to the belief that what is
good for business is good for the
•country." . : i
" ■
'■
large.
converti-
!;could be
has
been -; gbodtf&qj.f
business but not for the country,
at
•
infillbiliCy ■bad weather aT well as ^tq its-allies viand; have .spent $9
"Lr :
•""••• • Rood- Nothing billion on your own forces abroad;
There. I aire
who contendthat. Jthis Ad*;r
ministration
Co.,* Ltd.
.
fd
r'.cW7«ig
v'
remains.
.
Former Director, Morgan, Grenfell &
Viscount Harcourf states
our
respects* the bulletin, re-
some
some
ditions abroad.
.
of
uieurinraD idles.
(5) reformed credit terpis,. and (5) improving economic con- :
I
Economic Minister/ British"Embassy; Washington
I could cite
type but
same
fh^ TTn?t^f
he citest (1) derivation of recent expansion
from private rather than government enterprise; (2) its foun¬
dation on peace;, (3) broad base of prosperity, with 76% of
total income going to labor; (4) healthy inventory situation;
further progress,
a!
the
RT. HON. VISCOUNT HARCOURT*
By THE
-
a more
success
geared to giving free economic system a chance to work,
was
Prospects for
;
$41.8
striking'probf of the
program was" con*
tamed in a recent bulletin of thq
C.I.O. Though critical of the Ad^f;.
ministration's
economic " policies,
haps
-
Mr. Nixon states
of
more
at
of these figures is a
one
all-time record.
new
-
s
is
.
Each
RICHARD NIXON*
By HON.
$306. billion.
disposable income Is*
*
^
billion.
New
The
Thursday, October 27, 1955-
.
.
Personal
Out Economic Policies and
*
..
we
will
I
had
have
some
to
uneasy
rr^odhoTStr„«
the end of the Korean War there
was
strong
pressure
from
some
quarters to return to the policies
of the past.
B^t today
we See
that
Our
faith
World; War II.
"Wage
vided
CjTOSS
vr
~
,
-
~
n3tl0lisl product
at $392 billion.
_
StcHldS
of
in
of the world nearly $10,. billion;
,
1954
.
more than it has-drawn from it.
pro-
gain in real And:
I ~ realize
therefore - that
.wages than in any other post- American public opinion may find
war
year, for they were al- * it difficult to understand the conmost
more
a
entirely
the
over
amount needed to compensate
for-the rise in the cost of
cern
-
the dollars with
anxious to export to us.
W'fk
nod-dollar world,
flow of dollars is-due to processes
just
earn
.
in Europe about the so-called
is that the whole of this net out--
The two statements I have
made
efforts,,
which to
pay
fot those things which we
^ant from you and which you are
shall be able> by our own
^
dollar gap.. But what really worries us, in the
living."
"
A
Willi
C
u. DeCKer
ALBANY, N. Y.—A. G. Becker
incorporated, members of
^ q0
quotes from the entirely beyond our control. Dur"Monthly Research Report"'of the1 mg these years the American taxAmerican Federation:'of Labor for' payer has generously contributed
and other leading exchanges, an-
nearly $12 billion in foreign aid.
nounced today that John A.1 Mac-
are
direct
February, 1955.
has been vindicated.
^
•.
increases
eaineis
*
Anleriean.'wage
loaay
nave
r,r\on+imamf:l
more
.-./*»
jobs at
continued on
page
o7
addre„
court
at
the
by
investment
Vtecunt HarBankers' Asso-
Exchange
the
J0™ otock Excha g
Cormack has become. associated
with
the
27r19f
19S5.
firm's
office
75
'
J^fation Dinner, New Yorki City, October
Street.
State
Volume
182
*
Number
5476
*.
.
The Commercial and Financial Chronicle
(1759)
$385 billion Gross National Prod¬
individual
uct.
The Best Insurance
crease
a
In 1953 the defense
outlay hit
post-Korean peak at $51 % bil¬
lion dollars.
Against Depression
one-seventh
Gross
It
still less than
was
of-the
National Product.•
Who Counts
.-You
insurance against anolher
depression," and
that
(1) stopping spending; (2) vo'ing more socialistic
legislation and confiscatory taxes, and (3) worry over imag¬
structure and in distribution of national income.
so
Stresses im¬
In
York
feeling
the
what/makes
making the short trip from
tion
to
that
Boston,
I- had
-glossyp outer
I
the
tem
function.
from
that
distribution
had
stepped
fringe
of
-
.
so-called
ithe
hard
.if I
ers."
center-
I
miles
have
the
left
our
';of courage
warms
and
;
to
from
whence
•
comes
the im-
-
tire
.
fire
/
•
the
Donald
I.
the
industrial capacity,
of
not
but
here
dictate
entire
our
distribu¬
to
our
economy
Distribution
sales.
provide the lubrication
the entire economic machine.
,
have
I
if
would
*
'
how
on
build
be
.
It is not the
it
the
is
;
for
thought that
that
is
the
cally from
-
lack
up
effect
to
me
of
costs
of
transfer
tion.
their
In
costs
other
costs
owner-
are
the
pro¬
physical distribu¬
words, distribution
costs
distribution
the
of
performing
function,
which
they are the costs of mov¬
ing products from a manufacturer
means
to
retailer
a
These
costs
separately.
sidered
a
economy
may
a
be.
period
kind
of
and
into
cannot
They
the
be
homes.
measured
cannot be
con¬
weighted factor of the
such as production costs
We have emerged from
of the most
destructive
skeptical scrutiny of our
system and many peo¬
economic
ple still harbor in their minds old
wives' tales and misconceptions of
ton,
address
by Mr. Rogers before the
on
Distribution, Bos¬
Oct. 18, 1956.
Conference
Mass.,
the
Is
the
the
Tail
nation,
Ad¬
its de¬
on
of
spending per se
so very important after all.
It's hardly a good frosting on our
•
altogether
If
Mr.
balanced
will
'*
to
para-'
result
from
the
of
$62,100,000,000 was put together
by using personal income and cor¬
porate profit figures that are con¬
siderably lower than the current
income and profit rates indicate:
Moreover, the
ment
probably
sys¬
it's
one
a
billion
for
trend
time
of
of
us?
a
dollars
less than
1956;
an
cut.
on
the
activity at
the
depends
A
reduction
in
give
economically
/
for
time
critical
Administration in
any
election year-.
an
Thus
can
role in
;
J
,
-•
■
government
protecting
play
a
system and
our
helping
to
feel
like
"Say,
literature
better.
I
the
as
in
the
such things
Robinson-Patman Act or
the
Sherman
Act
interpretations
Trade
the
or
by
the
Commission.
many
Federal
Here
example of how the
is
an
government
all
that
run
my
farm
running it half as
how to> now."
can't-help : but feel
we are with our
running it suc¬
cessfully, but not half as well as
I
Actually,
that's
the
way
iknow
we
have
ments
on
to.
how
placed
too
it, too
on
but
have- found
many
actions.
our
that
have
have
posing us>
tail
the
of
economic
dog, but
or
falls with
enthusiasm
or
This announcement is neither
too
hand
a
economic
controls
in
forming
and
our
nomic regulations.
*...
if the
wouldn't mind
fessional theorists
of
ever
were
Just go back
through history ;and check the
facts
against the predictions of
perity.
the
;
Businessmen's
1
on
theorists.
Back
days,
Side
Perhaps
have
' we
'
entered
a
period of Congressional under¬
standing of our economic system
and
to
maybe
we
time
when
a
will be
is
long
government
If that
have, indeed, come
we
fpr
way,
first time
the
business's side.
on
true,
look forward
can
in
it
is
a
perhaps the
history that
modern
government
in
toto
has
tried
protect
sustain
the
nation's
and
to
economic welfare through the es¬
tablished and successful channels.
I
have
ist.
I
become
have
bgcome
self-defense.
field
fundamental¬
a
It
is
economics
of
one
out
is/ because
of
getting
so
ing with
by
come
into
theory,
study
our
group
a
convention.
a
that
my
a
or
Hardly
doesn't
-someone
new
system
and
new
solution to all of
economic problems.
an
offer to. sell
Five
Russian
would
fail.
in
They said
ripple.
said
an
Certainly
realizes
wasn't.
It
Hitler
In
couldn't
1923,
this Administration
clearly than any
previous Administration that the
continuance of our prosperity de¬
pends almost wholly on consump¬
Germany because he had no gold;
he did.
In 1930, they said
but
Japan couldn't afford war because
she had no gold and not enough
She did and it took
commerce.
atom bomb to stop her.
V-J Day it was
ton
that
soar
8
soared to
a
said in Washing¬
little
over
ing
that
over
recession
But in 1951,
up
offer to buy
and predicted
was
imminent.
successive,
Continued
any
on
We
have
festations
of
seen
many mani¬
Administration
of these securities.
October 27, 1955
$15,000,000
Dated November 1,
ny
Bonds, Series H 3%% Due 1985
1955
Due November 1, 1985
•
-
thinking along these lines.
This is
good, for many Ameri¬
a
still
believe
form
that
live
we
in
of
Keynesian economy
where it is necessary for the gov¬
ernment to keep pump-priming us
a
with
der
Federal
to
would
look
expenditures in
sustain
take
up
our
but
It
The Prospectus may
to
minutes
the figures in
Price 101.421% and accrued interest
or¬
prosperity.
five
of the undersigned
any State from only such
legally distribute it in such State.
be obtained in
as may
Federal
a
Reserve fact book to find out that
this
is
much
not
true.
Uncle
American
like
seem
No
Sam
matter
piker.
him
We
are
tion of buyers, consumers
that, is the secret of
ity.
J The
we
nave
our
a
supply.
~
<-
na¬
all, and
Glore, Forgan & Co.
Goldman, Sachs & Co.
Hemphill, Noyes & Co.
prosper¬
more we buy the more
to
W. C. Langley & Co.
the
make
consumers
a
how
spends,
•
It is silly
to
Lehman Brothers
'
•
Union Securities Corporation
believe that government spending
enters into
this with
any
significance. Government
ing for national security
major
spend¬
during
the second quarter of this
year is
yet
annual
an
it
more
rate
amounted
of
to
$40
only
than one-tenth of the
billion,
a
hair
nearly
Equitable Securities Corporation
Reynolds & Co.
Paine, Webber, Jackson & Curtis
Shields & Company
most
page
the Prospectus.
Long Island Lighting
long.:
'52 and '53 we chalked
three
the
It
two million
they said that the buy¬
spree was
a
might
million.
12
to
and didn't stay there very
In 1950,
an
Just after
unemployment
from
—
NEW ISSUE
First Mortgage
a
they
reconstruct
economy
more
mar¬
October, 1929, was just
A fellow
solicitation of
Plan
Year
didn't.
It
the fluctuation in the stock
ket
I
could
They said the
did.,
she
ard, but
the
the most vigorous in the world.
tion.
nor a
War
Britain
survive off.the gold stand¬
first
day
a
office with a new
new
a
of psychiatrists
pre-World
said!
the
hyper-sensitive that its like deal¬
at
the
in
they
never
tail nevertheless. The
dog, the main part of the animal,
is the productive and distribution
system which makes our nation
our
pro¬
right,
but they never are.
a
what it is and makes
our
eco»-
help, rather than hinder, the
system which promotes our pros¬
can
The offering is made only by
sure
a
can't help
many theorists
One
have had
You
we
we
than
it's
and
problem.
feel
we
impedi¬
restrictions
Perhaps
traffic, cops
more
Perhaps
many
capital¬
a
said:
me
national economy,
the
we
agent
and
know
traffic
which included
so
many sugr
up
how to
ain't
I
as
if
get
Carolina
country
sending
on
I
receiving
so
him
called
stop
good
the
from
he
automobiles
ones
North
the
much literature and
sensible government function than
past,
fundamentals
farmer who had been
our distribution function;
something that will be of benefit
in
maintaining stability in our
prosperity.
This is a far more
goes
its budget.
tax cut be good or
It
business
the
Depart¬
able to
Defense
will be
it had anticipated in
Thus, will
cut could
,
predicted
materializes, it
spending. The government obvi¬
ously figures that this business ac¬
tivity is going to increase and that
means
that incomes, profits and
sales volumes will rise, too. If so,
receipts will be higher than the
.official
estimates for them,, for
higher incomes and higher prof¬
its mean larger tax receipts.
The
fact is the estimate for receipts of
spend
tax
is
process
buying power a prod that would
keep the country in full prosper¬
ity for the summer, and fall of
Humphrey's
budget
likely
to
self-defense.
of
out
gestions
Government Now Is
more
driven -back
cnly
that
economic cake.
bad
and
which rises
one
at
♦An
Boston
of
come
barometric tail to be
a
cans
the
isn't
is
.
are
this
health
our
•
ship of tangible goods and to
for
people in the fi¬
awareness
the
on
'
vide
that I know
you
many
and
as
of knowledge
the
And
long last the economic
dog,
unreason¬
of all business activities necessary
■
of them too:
importance of distribution.
of
ket
comes
economic system.
Distribution
is the
your own
system, has come to be seen
perspective; more and more
people realize that the stock mar¬
whether dis¬
tribution costs are too high.
A
person who makes that request to
a
newspaper displays his fundamental
-
•
up
a
so
in
editor
periodi¬
subscribers, asking
facing
our
check
to
us
fel¬
the
if
to
istic
warehouses
most
which
one
interest to you
Market
which
warehous¬
but
the
for
able requests
that you
What should
sure
am
them.
assure
an
At
throughout the nation, our
distribution
system
could
not
function as efficiently. Therefore,
of
to
great
a
tem
ing and warehousing facilities, for
one
economic
Economic Dog
in South America.
distribution
feel
important
our
aware
are
Stock
dotted
I
of
people outside
mount
me
production problems,
and selling
not
I
of
more
have
distribution
it
distribution
nancial district who have
economy which is unrecognized in the business press is not
were
for
aware
of
of
our
alone
function
I wish
problems that are of major im¬
portance in any economy. I think
one
of the important factors of
I
of
•
field
highest, most inaccessible peak of
the Andes, yet if I were in possesof that key, would sell the
cars
be boring
recite the nu¬
to
make
to
a
Women's
fact that
sion
most Ford
slows
this
was
that
larger receipts than from reduced
■
It would
me
..factors
system,
the magic
sales, I
Ford plant on the
would give
you
key
sometimes
his
space
\
Westchester
for
you
are
and
sales
the
single
prosperity,
our
^
which make it the most
; of our nation.; Our .prosperity is
1 predicated almost wholly on one
—
getting the
thing to talk wisely be¬
one
merous
and
neither does the industrial system
factor
then;'fights' with
over
stick to facts.
today 'is
Street does not rule
or
merely a re¬
an objective
Club,- but here —well, here I've
got to eliminiate the malarky and
tion system. .You see, I am of the
school which believes that Wall
'
and
fore
I do
structure.
gathered
heart
facts
It's
this because of New England's
because
It
show that defense
newspaperman who assembles the ;
Rogers
en¬
enormous
I'm
to print them.
-
economic
say
and
experts,
•publisher
ener¬
gizes
na¬
spending, it will take the zip
the nation's rocket-pow¬
ered economy.! This is nonsense.
The figures. I cited a minute ago
out
great deal
porter— supposedly
furnace
which
advan¬
fense
"
-y
to stand-before
me
gimmicks.
and talk about economics or
'is not
distribution.
You folks
are
the
the
portant
ministration
-you
have
journeyed
for
a
our
that if Secre¬
succeeds in
re¬
prosperity.
tax
a
inflationary. But if
boom's crest has passed and a
a
say
low's^contention
appreciate
you -can
the fact that it takes
prosper¬
ity
suppose
/
Street
of
job like mine gets to listen
many
hare-brained
apd
long-haired
theories. Jthat
he's
with
our
the
Wall
our
think¬
put that phrase, "intellectual
I
radiator
which
severe
I know you will forgive me
-thinkers" in quotes.
core; in a few
on
time
perceptible,
an
is
July
receding
Humphrey
ducing defense expenditures, the
resulting
cut - in
government
spending will inflict a wound in
distribution
"intellectual
have
we
and
boom
1 or Oct. 1,
reduction, could be
tax
a
encourage
strong
temporary
sustain
without
tary
criticism from the long-hairs and
economy
to
the important
short
in
unfortunate
and
costs have been under such
our
country's
is
It
can
the
at
next
say,
cut in
expenditures
economy
this
We
a
a
dangerously
figures
earth, save perhaps our
very healthy Canadian neighbors.
Only last week I heard someone
capitalistic/sys¬
our
in
capital
expansion, i If
progress
and
will
consum¬
tage over almost every other
praises present Administration for its efforts in that direction.
•
wholesome.
That is where
portance of high consumption in maintaining, prosperity, and
New
these
individual
count
prosperity
economic
our
from
see
the
*
and not the government spenders.
That's what makes our economy
against:
catastrophes. Calls attention to changes in
is
who
ers
the people
warns
can
it
taxes
will in¬
taxes
power
further
1956,
1
Mr. Rogers maintains that "bulging" pocket books and wellbalanced accounts of the American consumer are the greatest
corporate
cut,
It Is the Individual Consumer
Business and Financial Editor, New York "Herald Tribune"
income
buying
in
$3654/2 billion
By DONALD I. ROGERS*
ined
11
t.
Tucker, Anthony & Co.
32
j
12
The Commercial and Financial Chronicle
(1760)
final market price of
And I mention it
people—pos¬
sibly most people — seem to be
under
the
erroneous
impression
that manufacturers set the prices
on
their products by the exclu¬
sive process of adding up all costs,
of price increases
here
cost-plus basis,
expected to justify its
Mr. Faiiless states that Lr. S. Steel is
economics
on a
except those who
to everyone
the price, the customers. Points out competitors and
pay
determine prices in a free competitive
sumers
still
customer is
king." Calls tax policies
equipment depre¬
long
"capital confiscation," and says prices of steel are
heavily influenced by need for modernization of equipment.
The
subject I have chosen for
this brief talk is prices—especially
the price of steel.
And I admit
quite
readily
this
that
decided
I
on
make
In
In
both
girl to
them
of
in
the
on
immediately
following the
wanted
that
tation
be
to
her
publishers
per
evening.
see,
in
effect, I now
the
write
For
hun¬
dreds
Benjamin F. t airless
"let¬
of
ters to the editor" all at
time!
one
In the process, I hope to offer for
consideration
your
certain
ideas, and problems which
of
interest
to
the
you
facts,
be
Let's
begin with
have
here
more
at
from
—
Pennsylvania
mention its
issue
recent
a
less
or
this example:
selected
of
a
random—
the various
I
won't
since I'm
recom¬
papers.
name
mending
all Pennsylvania news¬
tonight, and not just this
particular
one.
Anyway,
this
newspaper weighs less than half
a pound.
And it is priced at five
cents.
Thus, on the free market,
papers
buy a pound of this
for about 10 cents.
you can
paper
Now
since
news¬
I'll
want
of
gladly
six cents
over
sell
all
you
product
our
for
you
little
a
pound!
a
Just what does this comparison
prove? Well it
that
ably
cheaper
unquestion¬
of steel is
proves
pound
a
than
this
of
pound
a
newspaper.
Even
so,
I
doubt
seriously that the publisher of this
newspaper is a greedy profiteer
who is gouging the public
and
who
should, be investigated by
on
the
or a
I
of
this
course,
com¬
newspapers and steel
weight basis doesn't give any
a
clue
all
at
to
as
what
should
be
price of a newspaper
pound of steel. But this much
proper
know:
The
problems you
pub¬
lishers face in pricing your news¬
and
papers
not too
lems
we
solve
advertising
rates
are
dissimilar from the prob¬
steel manufacturers must
in
pricing
information
is
steel.
our
correct,
you
If my
pub¬
lishers also have both competitors
and customers!
As
for
an
introduction to
solution
the
price for
might be
that
the
between
other, he hadn't
a
U. S. Steel is in
management
even
when
dicament
it
worse
a
all
What
other
—
with
and
known
to
pull out
Prices
How
our
hair!
own
Determined
Are
.
.
United States Steel when it
comes
to
prices?
Well, along with other success¬
ful American industries, we in the
steel business learned
a
long time
ago that the following economic
principle is true and sound: That
is, each manufacturer must learn
his prod¬
ucts as efficiently and cheaply as
his tompetitors. If he doesn't, he
how to produce and sell
without
find
competi¬
tive struggle for markets in a free
Any successful business
—including newspapers — must
necessarily conform to that fact
of the market plade if it is to
economy.
its
to
employees, ,its fowpers, and,
asked
Fortunately for all,
by-product of this competition
among producers is the best pos¬
sible product and service at the
lowest possible price.
to
need
the
same
about his
time.
One
of them
was
the other was
proverbial "sweet young
thing."
Since our hero couldn't
own
age;
the
•An
Annual
address
by
Banquet
Mr.
of
Fairless
the
at
the
Pennsylvania
Newsoa-er Publishers' Association, Pitts¬
burgh, Pa., Oct, 8, 1955.
It
that al¬
seems
cus¬
long story;
a
first
at
now
render their
verdict
our
glance
combined
without
any
political
vote-getting cliches.
We are acutely aware of the fact
that they can turn to any one of
our numerous and eager competi¬
tors, or look for a substitute, or
or
cut
down
cut
back
the-
inventory,
on
prices is for
still
Whether
verdict
us
believe
on
against
or
that
it
is
even
or
production.
on
customer's
our
us,
we
the
right
verdict since it is delivered by a
free people who are using their
own money in a free market.
But
meanwhile, various of our
"wives"—government offi¬
cials, union leaders, the public as
represented by certain newspaper
other
columnists
and
radio
commenta¬
tors—are
busy
hair with
both hands. Thev
seem
to
yanking
whether
care
out
our
don't
hair
the
is
black
or grey.
Like the poor hus¬
band in Aesop's fable, we are most
flattered
by
all
this
attention.
Nevertheless,
we are
to
our
do
in
all
most anxious
avoid
to
power
premature baldness.
,
^Seriously .though,
ested person how we arrive at the
Actually, I could state—simply
and truly—that in the long run it
exolain
to
prices
we
products;
to
any
inter¬
hope to get for our
In fact, U. S. Steel has
always been a leader among the
enlightened companies in America
which decided
price of everything else, and
that—again in the long run—the
long ago that it is
good business to explain to the
general public the problems and
policies of industry. That is where
you publishers are of such inval¬
opinions
uable
is
the
customers
the
who
price of steel
of
general
primarily
they set
as
government
officials,
public,
the
owners,
and
that
of
of
story
price
assistance to
wouldn't
be
the
the immediate
steel
because
full
market
a
customers
for
slow
but
their
final
an¬
analysis
against which there is no anpeal.
sure
But before explaining
a
the most important factors
play
a
part
in
American
And
of
means
that
is
communication.
also
why
that you invited
I
am
so
here
me
tonight.
government
There are,
of
Costs
few of
which
determining
the
and
services
still
-
..
„
^great
in
who
detail
tions about prices dwell at length
our
costs,
arriving at
will
stand
market.
why
so
since
we
a
they
must
in
Possibly
many
a
are
consider
price which
up
We
d
e
we
will explain them time and again
in the future.
When
point out the obvious
we
fact that these costs must be
cov¬
in the price of our
ered
products,
usually understands and
But there are two gen¬
everyone
approves.
erally
unrecognized dangers in
this approach which worry me.
First, as I have already men¬
tioned, it frequently misleads the
unwary into the fallacious belief
that industry can and does oper¬
ate
exclusively on a cost-plus
basis.
This, of course, isn't even
remotely correct, since that theory
completely ignores' the competi¬
and
tors
who
consumers
the
into
run
awkward
people
some
that
fact
claim that
of
many
the things we must pay for aren't
costs at all!
Depreciation
example,
its rules
stances,
might
you
would
everyone
regular
de¬
preciation permit us to list as a
cost only a fraction of the pur¬
chase price of an equivalent new
machine
which
is to
replace a
worn-out
machine.
obsolete
or
Apparently
the government
acknowledge the
still
fact
refuses
to
that
inflationary policies have
its
caused
prices for
equioment
new
to double and treble since the old
equipment
to
bought
was
20
some
It permits us
approximated
the
number of dollars originally
years
ago.
more
or
recover
same
invested, but it forbids
the
cover
chasing
that,
by
to
us
re¬
amount
same
of
pur¬
it
is
true
Now
power.
"accelerated
of
means
amortization"—and
devices
other
recently adopted—the government
has
made
ouite
some
heloful
ad¬
obvious
in¬
equity. But even so, its basic tax
policy still has the effect of a
form of capital confiscation.
justments
in
this
Have any of you
cently
chine
replaced
bought
you
publishers re¬
Linotyne ma¬
a
of
15
some
Raising Needed
it
examined the
iati»n possibility — and
wanting. Now let's take
look
the
at
possibiilty of
sale of stocks.
Here
and
must face this
we
persistent
unhappy
Over
fact:
the
the profits and dividends of
U.
S.
Steel have just not been
sufficiently large to permit it to
attract needed capital funds from
stock purchasers!
Investors just
won't buy ownership of our com¬
pany in the form of stock at the
price it now., costs us to build the
new
plant and equipment.
For
years,
example, take the Fairless Works
—a fully integrated steel plant we
recently built here in Pennsylva¬
nia.
Its cost to
us
about $300
was
capacity — or
about
$400 per ton of finished
product. And since that time, con¬
of
ton
per
ingot
struction costs have risen further.
Now
as
ership in
knows,
everyone
our
can
in
stock
the
is
a
form
the
the
own¬
plant and equipment
and other assets
on
of
be purchased
certificates
Well,
market.
open
verdict
of
free
a
free market who
here
people in
using their
are
savings to buy United States
own
stock:
Steel
As
of
Wednesday
of the facilities it would now cost
us
agree
on
from
come
(Oct. 5) they are willing to pay
only about $79 to buy ownership
Problem
think
that
depreciation—that is, the using up
of machinery during the process
of production—is a cost of doing
business.
Well, the taxing policy
long followed by Congress does
not
realistically
recognize
that
fact.
Under
present circum¬
that
must
have already
p r e c
brief
deter¬
mine all prices in a free and com¬
come
raising the needed capital by the
anyone
Doubtless
listen.
would
to
must
Capital
a
moment..
Time and again in the past, we
have explained these three largest
costs
it
or
Problem
in
or
so
$300 and
to build!
more
This is
most
discouraging — especially
when so many people assume that
steel companies are making enor¬
mous profits and paying tremen¬
dous dividends. And if any of you
gentlemen are planning on retir¬
ing from the publishing business
and
entering the steel business,
let me give you a little tip: Don't
build a new plant; because on the
open market, you can buy owner¬
ship of existing facilities for about
one-fourth the cost of duplicating
them.
while
Now
that
funds
there
Steel
S.
U.
is
doubt
no
raise capital
can
through the sale of
common
have found it more ad¬
vantageous either to borrow the
money and pay it back out of fu¬
ture earnings or to use a portion
stock,
we
of current earnings.
followed both
for
have
we
Last year,
borrowed $300
we get this
we
But
mostly
capital
new
And
courses.
example,
million.
expansion
and
ploughing back
for
modernization by
into the business about half of our
Some of the owners of
aren't convinced that
earnings.
Steel
S.
U.
is the best policy—and more
this
than
all
to
in
act
yank
regardless of
act as they want
hair,
our
color, unless we
us
to
threatened
has
one
out
the
of
matter
divi¬
dends.
ago? If so, I'm sure you will
with me that the govern¬
ment's implied claim that its de¬
years
preciation
machine
we
the
in
hooe
competitive
that
explains
people erroneously
the
to
pay
sufficient
equivalent
an
for
allowance
is
old
for
machine
new
is
front-page news!
ly
that's
which
the
Well, apparent¬
fallacious idea on
the government now
its taxing policy.
And
you,
Basis
Cost-Pius
The
the
the
to
growth
it
modernization.
and
Steel—as well
I
expansion
Without
as
any
it,
news¬
to mention—would
be driven out of business by
its competitors.
Now everyone wiU agree that it
costs
money
to modernize
s*eel plant or to build
But.
you
with
that
are
can
almost
monev
start
an
anyone
is to
a
come
as
an
new
old
one.
argument
to
have
following
the
seemingly simple solution to our
pressing problem of finding the
money needed to meet increasing
wage
higher
demands,
taxes,
and a
more
deserves.
and
offered
modernization
capital
consideration
refer
blandly
bases
Steel, are heavily taxed
required to make
up the difference.
The price of steel is also heavily
influenced by another vital fac¬
tor which is not generallv given
on
Some sympathetic persons
along
with U. S.
soon
on
business;
company.
course,
It
see.
the sale of stocks and bonds.
found
a
can
realistic treatment1 oF de¬
a
other costs which I shall mention
paper you care
Competition
Naturally, these various exolana-
first factors
I
as
preciation recovery which recog¬
nizes the reality of inflation; or it
must come from higher prices and
larger profits to reinvest in the
cost is the cost
in the form of
taxes.
U. S.
great
decisions must necessarily
be made by a number of people
before the price is presented to
alysis—a
the
people with your newspapers and
many
the
largest
far
Thursday, October 27, 1955
.
agree
alwavs
we are
willing
pleased
just beginning to turn grey.
According to the fable, this bach¬
elor was courting two women at
want
speeches
But
was
compli¬
the price—our
pay
they
neither
hair
into
run
whether the price is right or not.
And
other
his
we
time U. S. Steel raises
customers
even
the management have
astonishingly little to do with it.
young;
But
Fortunately, they neither
nor
the
nor
profit, from the sale
a
along the rugged path to
tomers.
Aesop wrote some 2,500
years ago.
The story begins with
a
middle-aged bachelor who was
old
its
aid
recover
a
the
fable that
to
its customers.
set
and steel, it
interest to recall a
aim
its prices, we are expected to jus¬
tify the price increases to every¬
body except the people who are
and fulfill its obligations
prosper
search
newspapers
of
himself
soon
the
of
Second, when we begin listing
our
costs of doing business, we
most every
and
one
Now, what does determine the
price of a ton of steel? Who sets
it?
Just what, is the. .policy of
will
of
largest
products and
outside
next
For
sometimes,
in the middle have been
are
The
second
petitive market.
For example:
all—our
of
together—telling us what to
that, those of us
who
the
The
the
I assure you
do,
is
bought
The
S.
its products.
pre¬
to
comes
important
customers.
then the
Steel.
The Customers' Attitude
that
and—most
S.
cost
of
ton of steel.
a
largest
cost of all is, of
the wages and salaries—
including pensions, social security,
insurance, and other benefits—
paid to or for the employees of
U.
.
from
in
to
all sorts of problems and
After all,
poor husband had to please
only two people. But on this mat¬
ter of the price of steel, it seems
that we're expected to please the
government, the general public,
the
owners
of the Corporation,
price of
ex¬
stay
does
cations
operate
can
cost-plus basis.
that desired goal.
the
Actually,
is
any com¬
its costs—
we
on a
And, admittedly, U.
costs, plus
of
his head!
on
proper
our
the
to
Steel
the
and
one
profit—if it
a
business.
single hair left
customers because of the
government.
Actually,
parison of
was
convenient fashion.
a
must recover all
plus
the husband
gratified by the attention
and devotion of
his two wives,
until one morning he discovered
I,
too, am associ¬
ated with a particular industry, I
have brought along a small sam¬
ple of our basic product—steel.
And
while,
a
it be for eggs, adver¬
steel—just doesn't work
or
It is true enough that
pany
highly
time
next
the subject of vour editorial pages
newspaper
tising,
may
is the price of steel.
I
I
So,
hair she could find.
o
bet¬
—whether
in such
op¬
t
had
should
you
ter than I do that you can't pos¬
sibly run a newspaper business on
a cost-plus basis.
The free market
triously plucking out every black
this
You
have
age.
reporters"
figure when adding
"plus for profit!"
pull out the husband's grey hairs,
the older wife was just as indus¬
speaker
portunity
possible. And, just as
the older wife wanted
his age—or, at least,
The
you
new
while the younger
wife seized every opportunity to
your
guest
to
of
You publishers know even
look
him
have informed
"cost
the
your
as
naturally,
newspa¬
wife
younger
her husband to appear as
youthful
from
you
the
the
time, they would
same
just doubled, and that
use
Naturally
welcome invi¬
an
that
course,
reporters would have found
At the
doubtless also
no doubt
that this is truly a
mind
such
were
way
news
fable.
my
there
it out long ago and told you about
it.
day—which leaves
times-contro¬
versial subject
a
of doing business as
cost-plus pricing in a competitive
economy, I'm sure that your sharp
both of them.
according to the fable,
married
he
if
fact,
easy
he mairied
fact,
same
some¬
his mind which
up
marry,
as
free market.
"will customers buy
products at prices demanded?".
our
many
successfully in that way
as
it has competitors in
run
ciation
Concludes the all-important question is
because
plus
a
mark-up
for
whatever
profit the manufacturer wants. As
we
shall see, no business can be
con¬
market, and "the
on
the¬
of pricing.
ory
Chairman, Executive Advisory Committee
United States Steel Corporation
determined
theory
one
I refer to the cost-plus
use.
By BENJAMIN FAIRLESS*
are
clusively
steel, I must
of pricing
which, most definitely, we do not
The Perfect Price o! Steel
Denying that steel prices
believe
mention
.
where
programs,
equitable dividend.
They
suggest: Why not arbitrarily add
a
few more dollars to the price
the
customer
The
must
suggestion
pay?
who
persons
make
that
evidently the ones
who imagine that we can and do
are
operate exclusively on a cost-plus
basis.
of
the
They
seem
totally
unaware
fact
that, in a free econ¬
omy,
competition for customers
insures not only the best possible
product but also the lowest pos¬
sible price. And even after that,
the
final
customer
fact
remains
can't
be
anything at all!
ernment
with
its
that
forced
to
the
pay
Unlike the gov¬
taxing powers,
U. S. Steel can't" tpv° the cuStom-
from. There,
only three possible sources,
so
Continued
on
page
34
Volume
182
Number 5476
.
.
The Commercial and Financial Chronicle
.
all shades of promised Utopias
are
Property Rights, 5th Amendment
.ownership of the
producing wealth, not
the common ownership of wealth.
To say the least, this is a fine line
Manager, American
Bankers
of distinction which we have
Association
had
Mr.
Selecman, in pointing out the Fifth Amendment not only
"self-incrimination," but also protects private
our
the
and intellectual progress, and points out it is the
basis for the growth of the trust business. Holds recent shifts
toward wider ownership of property furnishes
opportunity for
more business for trust
companies.
told that
can
own
Rus¬
a
one
cow—
belongs to the state.
if her
kill
to
a
mission
mine, a Czech, tells
family back home wants
pig, they must get per¬
from
the
state.
Constitution
of
the
United the
States contains 22 amendments.
In our grandfathers'
times,
1865, the most talked about
ment
tion
in
amend¬
No.
was
land.
Our
original
contained
written
was
ished
Philadelphia, fin¬
September,
1787,
and
in
signed by 39 delegates from
13,which abol¬
confederated states.
became
moth¬
our
effective
after ratification
ers'
time, in
1920, the most
in
talked
Constitution
There
about
mendment
a
the
was
Many
19th,
was
and
It
articles.
seven
in
ished slavery.
In
Constitu¬
13
These articles
in
1789,
March,
by nine states.
of opposition
Congress to this
lot
a
out
our
of
of
claimed
articles.
seven
it
not
was
*
suf¬
ficiently explicit to protect indi¬
giving nation¬
vidual
wide
pounded his
to
In our fath¬
ers'
in
time, also
1920, an¬
other
proposed
lands.
our
the lbtn,
Act.
Volstead
the
when
remember
1933
Amendment
was
us—also
of
some
parent of the famed
Our fathers—and
21st
repealing
adopted,
18th,
the
kinds of beverages.
of certain
Today
and
—
the
for
years—the Fifth Amendment has
cornered
the public limelight.
I
how
wonder
Fifth
this
read
the
to
has re¬
ceived, most people today think of
the
publicity
it
Amendment
Fifth
the
as
one
about "self-incrimination"—that
does not have to be
person
a
wit¬
a
ness
against himself in any crim¬
inal
Rights.
intention to debate
this
of
particular
pro¬
vision of the Fifth Amendment.
It
ably debated in Philadelphia
less than two months ago at the
was
American Bar Association Annual
Convention
Griswold
by
Erwin
Dean
N.
E. Griffin of Seattle.
guilty mind
that
shelter
seeks
hatch
this
of
the
in
escape
I
provision.
wisely
My
is to talk
provision
all
in
the
of
current
"self-incrimina¬
tion."
In
fact, there are seven
fundamental points in this Fifth
publicity
about
section
at
that
of
It says to every
citi¬
important has that been
these 164 years?
over
Here in America
we
have
a
very
important word called "incentive,"
which
means
action, a
something. Amer¬
a
ica
has
been
to
spur
motivation to do
called
the
Land
tion
the
and
national
well-
been
never
property
\
guarantees.
ex¬
rights
it
.
.
„
A
Background of the Trust
\
Business
are no
of
and
this
of our desire
cause
right
be¬
things
incentive,
to
own
do so, and by
creativeness, we
have become the wealthiest, most
powerful nation in the world, with
our
hard
the
to
and
work
highest standard of living ever
known.
Because
our
right to
ment
of
own
desire
have
to
ownership,
Amend¬
Fifth
things and our
and
that
enjoy
American citizens:
we
Own 25-million homes.
Own
more
than 48-million auto¬
mobiles.
in
36-milIion
which
we
billion since the
Own
television
sets
invested
of
ess
the
We
have
rich
people —
people—but a great
poor
many
the
for
trust
mean
in the trust business?
The
business.
day there
707,000
of
crease
increased
181%, and the $15,000-to-$20,000
that
moved
bracket
Federal
estate
estates
trust
or
In other
institutions
137 years
over
in
words, the development
of the trust business in this
was
coun¬
made pos¬
sible only because we had the con¬
stitutional guaranty of the private
ownership of property. As a citi¬
zen, as well as a trustman, you
more
Just what do all of these changes
It
a
of
less
annual
than
$3,000.
institutions
who
ought to take
you
fresh look—and
a
careful
what you
find.
Maybe your type
selfish interest to
see
of
the
istration will need some overhaul¬
ing.
Maybe your top policy of¬
ficers of your bank—and your di¬
rectors — don't realize the sig¬
longer
Like
is
that
preserve
priceless
incentive
produce, to own, and to enjoy
the fruits of
our
own
only
have
and
the
not lose sight of this
significant change. You have more
customers and potential custom¬
business
of
enters
modern
men
trust
the picture.
complexities,
and
women
have
institutions
for
in
managing the property
own and in the disposition of
it from one person to another, and
especially from one generation to
another.
If
continue
the
to
trust
serve
business
is
those
people
efficiently;-we must keep abreast
of the shifts in the ownership of
property
property
than you ever had in the his¬
ers
tory of the trust business.
and the nature of the
owned.
Reduced to a
service and your trust admin¬
nificance
,
duty to
these
a
moment to
people own.
the nature and character of
When
property?
lates
age
a
man
their
accumu¬
modest estate ;for
a
see
What is
his
old
and his family, what does he
that
man's
a
consisted
estate
largely of real property and giltedge bonds.
What are the nest
eggs
today that he has stored
away?
We know he has a lot
life insurance because there
more
$333-billion of life
are
Outstanding.
increase
This is
over
a
tremendous
Gen¬
erally speaking, we know this man
owns
little real property.
own
a
pose
He
an
and
it or dis¬
of it in orderly fashion.
know
stock
he
owns
because
of
more
the
insurance
life
This announcement is not
policies totaling more than $333-
the
for your
reasonable
nature, trust business is conserva¬
tive because it handles the prop¬
erty of other people.
ever,
to
change,
-The
the
one
potential for real service, for ex¬
citing opportunities, and a deep
sense
of satisfaction for every one
of you in the trust business.
Two With Daniel Reeves
(Special to The Financial Chronicle)
BEVERLY
Henry
F.
HILLS,
Macy
and
We
shares
of
widespread
point
which
Amendment
son
.
.
law."
Then
private
public
the
Fifth
"no
says
per¬
shall be deprived of prop¬
.
without
erty
of
the due process of
adds, "nor shall
it
property
use
be
without
taken
just
for
These
words
in
our
Bill
of
foundation
of our system of pri¬
ownership of property. These
the
were
written to implement
fundamental
due
of that
process
of
nation,
joy
right without
the
law.
we eat exception¬
dress well, have lei¬
we
time, and
that
afford
can
leisure
time.
to
Daniel
Beverly
Reeves
Drive,
&
Co.,
Our
chil¬
which
parents didn't
even
This is the
free
record
people who
our
of
had
164
a
take
a
Exchanges.
Mr.
Todd
pany.
to
remind
Cause of Our Well-Being and
*Ad
the
address
23th
by
Western
Mr.
Selecman
Regional
Trust
before
Con¬
tion, San Francisco, Calif.,, Oct. 13,
1955.
Bonds, 3%% Series due 1980
Due October
15, 1955
Price 10lVi% and accrued interest
•
Prosperity
No other provision of the Con¬
stitution, in my opinion, has been
more responsible for our national
such
record?
Can
munism show anything like
a
may
be obtained from the undersigned.
HALSEY, STUART & CO. INC
Com¬
this—
pseudo-shiny promise of
unproven value? I recognize there
except
Copies of the Prospectus
prosper¬
ity
with
ference of the American Bankers Associa¬
Company
years
tutional right to own and enjoy
private property; to manage, con¬
serve, and dispose of it; and had
the incetnive to produce.
well-being and economic
minute
Dated October
October 26, 1955.
South
398
of
was
the
Stock
pre¬
viously with E. F. Hutton & Com¬
consti¬
than our guaranty of private
ourselves on how this Fifth Amend¬ ownership of property.
Does his¬
ment became a part of our law of tory record any collectivist state
Let's
First Mortgage
S.
New York and Los Angeles
$2,500,000
Wisconsin Natural Gas
—
Robert
members
en¬
grand¬
dream of.
opportunities
right of private
ownership of property by a citizen
by saying that he can't be de¬
prived
a
dren have comforts, pleasures, and
of
Rights, stemming from the Magna
Charta, are the keystone and the
words
sure
compen¬
sation."
vate
As
ally well;
Calif.
Todd have become affiliated with
Own 70-million savings accounts
exceeding $73-billion.
I want to talk about is
sixth
how¬
can,
and conservative in
It has a tremendous
application.
offer to sell or a solicitation of an offer So buy these securities.
offering is made only by the Prospectus.
the majority of $320-biloutstanding stock in Amer¬
ican business corporations.
It
be bold in vision, adaptable
lion of
Protection of Private Property
profit
By its very
stockholders.
an
The
billion.
your
of its greatest useful¬
American public and
era
to
may
business
would expect you to run
it's
insurance
15 years ago.
profitable
not,
that they do know.
see
commensurate
Now let's take
what
changes to the
If
Trust business should be enter¬
ness
Composition of Small Estates
these
of
trust, business.
ing
It hasn't been too many years ago
men
right to manage it and
This is where the
to
dare
the right to produce,
enjoy property — they
thousands of
turned
retail—not wholesale—and
now
have that makes up this accumu¬
lation for his financial security?
free
dispose of it.
Because
trust business
not
society,
our
labor.
banking, the
you
that
right, for each of us, to own
property of any kind—wealth pro¬
ductivity — or otherwise — and to
trust
are
war.
237-million
one—
your
and
are
of
care
an
in the trust business?
me
potential customers
what they own.
Maybe
your sales approach and your pub¬
lic relations are out of step with
have an annual income
$1,200. Almost twohave
to
seems
at
than
institutions
to you
mean
No
tional
to
curity for himself and family.
prtrr4r._
thirds of the trusts in the
tre¬
a
you
will find in your potential
customer's basket of financial se¬
by trust institutions in this
less
of
been
in this area of
financial security.
This may be another new nest egg
A survey we are currently mak¬
ing in the Trust Division signifi¬
cantly points up this trend. Pre¬
liminary figures indicate that al¬
istered
has
growth
ownership for
show
$60,000
There
mendous
than doubled in 15 years.
nothing happens to this constitu¬
help
they
trusts?
upward.
returns
tax
over
are
How about shares in investment
group showed comparable gains.
One out of every
three in the
$2,000
To¬
Revenue.
considerably more
than 25,000.
It is estimated that
more
than 12-million employees
are
covered
under
these
plans,
compared to 2 Vz-million in 1930.
to 2,273,000—an in¬
than 200%.
The
group
qualified rulings of the
of Internal
exclusive servants of the wealthy.
business
trust
Bureau
more
$5,000-to-$10,000
ago,
received
six years, this group increased
from
income
have
years
$10,000-$15,000 income group.
Do you know of any trust
In
Twenty-five
plan.
the
simple.
to
nest egg—a pension
retirement
or
probably has
of today
there were only 110
private retirement plans that had
trust
a
man
people who need
your services.
The greatest gain
by far in personal income the past
eight years has been with those in
of course, is obvious and
have
This
another new
the
are
answer,
try
or
American citizens.
people of moderate
This is the increasing mass
These
owns more gov¬
Bonds
grandfather. In
the U. S. Savings Bond depart¬
ment alone, we know there are
$37-billion
held
by
individual
more
market
We know he
ernment and U. S. Savings
than his father
proc¬
fewer
fewer
Own
Amendment.
leveling
has
ownership of property
in the past 25 years.
wealth
or
what
increasing ownership of equi¬
ties.
$15-
have
.
taken place in the
country
Now what does all of this
own,
Opportunity—because there
realize
we
and
owns
...,
...
most half of all the
of
roadblocks to incentive.
Fifth Amendment that has escaped
unnoticed
back and look
go
property
Own
to you
of the
of
Just how
intended to give.
purpose
another
about
Bill
our
erty, and he can't be deprived of
it without the due process of law.
the
was
in
he has the right to own prop¬
zen
also
protection to the
honest citizen that this provision
recognize
of
which has
by any other system of
society—thanks to our Constitu¬
is
change.
let's
Now
Harvard Law School
of
Tracy
I hold no brief for the
Amendment
10
We have had it 164 years
without
the
Fifth
these
Because
It is not my
and
The
of
one
case.
the merits
in the U. S. A. have
Russia?
land.
remember its content.
cently—or
Due
of you have
Amendment re¬
many
the foundation
the
So
amendments
amendment.
few
past
ac¬
ceeded
to you
re¬
garding the manufacture and sale
we
brand
own
being
1791, became effective law of the
Merle E. Selecman
about
endment
a m
was
But
popularly
called "The Bill of Rights."
Ten
of
these
were
ratified
by the
states, and two years later, in
"most"
talked
rights.
as
his, which
Engels and Karl Marx
had their own brand of promised
Congress, meeting in New
York City in September of that
year, submitted to- the states 12
;
women.
state
had
society.
first
suffrage
and
More
slavery
cepted
of
Utopia when he
famous
"Republic."
own
his
wrote
Thomas
pro¬
"
.
think
I
In
History reveals that Plato
The
A
good friend of
me
simple question it is—"Who
what?"
means.
was
farmer
rest
pray
will.
never
we
sian
Finds this aspect chief background for
never
face, and I devoutly
Recently I
material
*
to
that
protects against
property rights.
of
means
By MERLE E. SELECMAN *
Executive
advocates; of collective com¬
munity organization. Some advo¬
by
cate community
And the Trust Business
13
(1761)
15, 1980
14
(1762)
The Commercial and Financial Chronicle
Corp. Transfer Agts.
Monthly Meeting
Connecticut Brevities
At
Fire Insurance Company
17, approval was given to
Oct.
on
of
meeting
stockholders
a
National
proposal to merge National with
itc wholly-owned subsidiary Me-
a
Insurance
Traders
and
chanics
At the same time steps
Franklin Na¬
United
Company.
taken to merge
•were
tional Insurance Company,
and
National Indemnity Company
Transcontinental
Com-
Insurance
...
also subsidiaries of National,
pany,
with Transcontinental as the sur-
These proposed
viving company.
companies and are expected
two
to
provide for more efficient
economical overall operations.
*
of the
All
and
The Homelite
Corporation of East
Port
Chester, Conn., has
been
acquired by Textron
American
Inc.
Homelite
produces
power
chain
saws
and
engine-driven
and
pumps
A
generators,
which
Programs Announced
vored
ancj
members
vestment
of
the
Dealers
will
Junior
The
Pratt
&
of
ppration
has
Aircraft
Whitney
United
Aircraft
Cor-
'
the
Plnh
Club
nf
of
Npw
New
*
uniform
of
be the guests of the
Association
of
New
Investment
its
expand
The
North
company
in
acres
Haven
to
plant,
161
about
owns
North
plans
Haven
which
on
is. presently located a plant and
office building containing about
690,00
SjfniSf0^0
600,000
ly
feet of floor
square
office
increase
about
u°
feet would virtua.production space and
square
double
25%i
!
i
space.
The
be
devoted largely to turbo-prop
engines is scheduled for comple¬
tion about June of next year.
#
.
*
has acquired control of
97.4% of the stock of Hemp & Co.,
Inc. of
Macomb, 111., which manufactures metal products including
picnic jugs, ice chests and a line
of
outdoor
equipment.
Pierce
William
and Howard Colgan
ney
issues
'
-
-
barbecue
and
grill
will
Co.;
Samuel Thorne 111,
Co.; Blancke Noyes,
Hemphill Noyes & Co.
>
Alternates: Paul L. Sipp, Jr.,
First of Michigan Corp.; John G.
W. Husted, Jr., Dominick & Dominick.
The bonds will
Miri
Kv
its
present name.
*
'
iraLTnLrnn™."^.
Fund,^Incowrated ^^eng^-
speaker will be the Honorable W.
t}
turing Company will meet
on
Nov.
Program'Committee° y0U %the
Southwestern Securities
Opens Ft. Worth Branch
FT.
WORTH,
.
0
Texas
...
South-
—
„
17,
1955 to vote on a plan to
with Penn-Texas Corpora¬
A. & C. Inv.
tion, which recently acquired
other
Hartford
concern, -
/e
an¬
branch
NHes-
Bement-Pond
Company.
If apstockholders
of
Colt s
proved,
nf^C«1Ve
?}'
ble
sh*res 9
w?
voting cumulative converti-
preferred and four shares of
o?cS^40nnnnennnh"TefXaSfl0r e3Ch
S
stock
office
common
outstanding..
and
Investment
Corp.
has
been
formed with offices in the Shirley
Savoy Hotel, to engage in a securities
business.
Officers
are
Arthur
T
at
81
and
artstenserVke-Presldenl';
Georgia M.
Ashworth, Treas-
urer.
Broad
Street
other than the PHA, and the
housing projects.
and
be callable 16 years
accrued
interest,
of
Southern
New
presently being offered rights to
purchase
for each
The
ohe
nine
rights
Proceeds
shares
will
of
share
new
$33
outstanding.
^
expire
the
at
■
•
r
;,
•■*..
The bonds of each
contributions
issue
.
Oct.
28.
in
the
amount of about $17.8 million will
be used in connection with the
company's
construction
program,
Gross plant additions for 1955 and
1956 are estimated at about
$40
million and $43.5 million
ively.
In
June
company
of
raised1
th's
$20
respectyear
the
million
SAN
Co.
has
been
R." Bretting
the
tQ
Weston &
staff
has
unconditionally
-
v
Qf
Daniej
.
•
tj'lL
*V.
"
<
.
*
*
■
-
Schroll
has
&
-
Local
Co.,
San
Francisco, Calif
Waterbury, Conn.
Bid—%
$14,315,000
_
2%
100.745
1,280,000
2l/2
100 281
3,835,000
7,785,000
2%.
191.815
1,725,000
2%
101.80
_
14,400,000
2%
100.099
_
.1
20,415,000
2y2
101.517
1,190,000
21/2
101.419
_
-
_
_
-----
Van
1115
_
York, N. Y;.
New York, N. Y..
Reynolds Co. Add 3
Cleveland,
Ohio
7
1131
7,425,000
D.
T.
Wilson
Mulberry Street.
SANTA
Continued
Members New York Stock
&
from
page
5
regular and extra disbursement.
Pacific
Baikfe^nT Alcantara°1517
Pai^ and Alcantaia, 1517
Avenue.
DENVER,
Colo.
Thompson is
Exchange
stock
Recognize the true nature of the
dividend.
I
.
(1)
now
.
Marlon. H.
—
connected
with
Investment Service Co., First Na¬
tional Bank Building.
With
Hartford
—
JAckson
Freehling, Meyerhoff
(Special to The Financial Chronicle)
REctor 2-9377
CHICAGO, 111.
7-2669
Teletype NH 194
Adams
is
—
connected
now
Freehling,
Meyerhoff
South
Salle
of
the
Stock
La
New
&
Street,
York
Exchanges.
and
'
Stacey C.
with
Co.,
120
members
Midwest
Ayoid
rumors
(2)
New Haven
SECURITIES
—
101.187
staff of
CO.
r
New York
101.039
21/2
Observations...
Joins Inv. Service
CONNECTICUT
21/2
getting to know the company, to recognize its policy regarding the
(Special to The Financial Chronicle)
CHAS. W. SCRANTON
100.155
CRUZ, Calif. — Sol E.
Heren, Jr. has been added to the
u~
Primary Markets in ,;
101.877
2%
6,010,000
.)
2%
mond J.
.
IIOW NOT TO
y
100.624
102.008
17,015,000
3,330,000
.
.
w
2%
2%
With Baikie Alcantara
have joined the staff of W. Harold
Hilbert,
101.80
JJ
A
Bayne
..
6,345,000
(Special to The Financial Chronicle)
FRANCISCO, Calif.—RayWheeler, Jr. is now connected with Reynolds & Co., 425
Montgomery Street,
21/2
4,920,000
..
SAN
•
Rate—%
.
associated
(Special to The Financial -Chronicle)
and
Annual
.
Amount
Authority
Kenneth jW.
—
become
Walston
•
Chicago, 111.
^Chicago, 111.- i'—i——
Owensboro, Ky.
Joins Walston Staff
FRESNO, Calif.
Hllbert Adds
CARMEL, 111.—Clarence
Froman
an
Interest
(Special to the financial chronicle)
MT.
under
D
(Special to The Financial-Chronicle)
—
Partners are Solbert L.
Greenberger and Bert E. Green.
first pledge of
a
&
_
"ess>
payable
■
.
by
The group submitted the following winning bids:
1
;
been'.
Co., 140 South Beverly
Drive.
formed
with offices at 221 Montgomery
Street to conduct a .securities busi-
'
.
secured
New
FRANCISCO, Calif.
&
.(
issue will be
of Commerce of Seattle.
Calif.—
•
with
Green
,
the bonds is exempt from any Federal, income tax
of Western New York; Merrill, Turben & Co.; R. H. Moulton &
Company;-The Peoples National Bank, Charlottesville, Va.; Third
National Bank of Minneapolis; J. C. Wheat & Co.; National Bank
'•
HILLS,
Green & Co. Opens
are
from their date at a call
thereafter at decreasing
and
'
on
Ness Avenue.
Stockholders
England Telephone Company
or
remainder
Baker, Watts & Co.; First National Bank in Dallas; A. G. Edwards
& Sons; Field, Richards & Co.; First National Bank of Minne¬
apolis; Carl M. Loeb, Rhoades & Co.; The Marine Trust Company
•
of Carl Bitter,
(Special to The Financial Chronicle)
A«hwnr+h
H* A*
retire
to
(PHA)
Merle-Smith; Bache & Co;; Seattle-First National Bank;
Bank and Trust Company, Winston-Salem; American
Company, San Francisco; Barr Brothers & Co.; City Na¬
tional Bank & Trust Co., Kansas City, Mo.; Glickenhaus & Lembo;
Mercantile-Safe Deposit and Trust Company, Baltimore; Trust
Company of Georgia; Commerce Trust Company, Kansas City,
Mq.; The Illinois Company, Incorporated; The First National Bank
Of Memphis; A. M. Kidder & Co.; Laidlaw &
Co.; W. H. Morton
& Co., Incorporated;
Fidelity Union Trust Company, Newark;
f
added
DENVER, Colo.—A & C Realty
used
Trust
Daniel Weston Adds :
•
Donald
,
Ch.on.cH
be
Administration
Wachovia
Securities Company of
.a;!as ,?.as °Pe^d a branch offfee
J.1) the Sinclair Building under the
directl0n of Howard D. Burdick.
BEVERLY
Corp.
ll4.m
-
Dick
„
western
,
merge
will
bonds
'The offering group includes: Chemical Corn Exchange Bank;
Guaranty Trust Company of New York; Harris Trust and Savings
Bank; The First National Bank of Chicago; The Northern Trust
Company; C. J. Devine & Co.; Kidder, Peabody & Co.; Kuhn,
Loeb & Co.; Salomon Bros. & Hutzler; Lazard Freres & Co.; The
Philadelphia National Bank; J. P." Morgan & Co. Incorporated;
tne KentucKy "ome Lltt
Burgess, Under-Secre- under the direction
tary of the Treasury. Further de-
>
£
the
Housing
Contract between the PHA and the local housing
authority issuing the bonds. The United States Housing Authority,
as amended,
solemnly pledges the faith of the United States to
the payment of the annual contributions by the PHA.
"
in the Kentucky Home Life
Randolph
Stockholders of Colt's Manufac¬
' Interest
annual
Ampr
—
under
of
or
hereafter imposed. The bonds are legal investments for
savings banks iand trust funds in New York and certain other
was
Investment Association
of
New
f
n
...
acquired through a share for share York will be held on the evening
I. G. Weston Branch
stock exchange, Present plans call >of
Tuesday, Nov. 15, at the WalKEYPORT
N
J
I
George
for continuance of the subsidiary
dorf-Astoria
Hotel.
The
guest Weston
&
Sons
has
opened
a "
at its
and
Public
now
Control of Hemp
present location
Tacoma,
and
Contributions
T oiTTSVTT T F
,
&
The 1955 Annual Dinner of the
Y.;
to meet the cost of the
price of 104
call prices.
i-
sale
the
the
loans from
be used
■states.
Goedeeke, Chairman, offices
Smith Barney & Co.; Francis J.
Cullum, First Boston • Corp.: A.
Parker Hall, Jr., Shearson Ham&
from
from
temporary
-
^
Mid America Fund
-
J.; Trenton, N. J.; New. York, N.
Proceeds
advances
-
Ana,ysts
,
D, ranging in yields from 1.50% to 2.50% applies to
housing authorities in Chicago, 111.; Owensboro, Ky.;
of
Newark, N.
bank, Tweed, Hope & Hadley.
-
in yields from 1.50% to 2.45% and is appli¬
Buffalo, N. Y. local housing authority.
ranges
Wash.
Mil-
of
Scale
V
r
S.
and 2%%
-
were
mittee of the Investment Association. This commiUee will nomi-
bid;
i
Scale C/with yields of 1.50% to 2.50%, applies to local hous¬
ing authorities in Cleveland, Ohio; San Francisco, Calif.; St. Louis,
Mo. and Waterbury, Conn.
Joseph E.
Williams, Chairman,
New York Stock Transfer Association
and
Vice-President,
The
Chase Manhattan Bank; Dan Ten-
.
appointed to the Nominating Com-
specified interest rates of 2%%, 2*4%
serially 1957-1996.
group
Scale B
.
Hotel.
members
the Philadelphia authority,
cable to bonds of the
change Firms; John Haire, Secretary, New York Stock Exchange;
Fenner and Beane
The' following
bonds offered by
for the bonds, which mature
^StoclT
Shields
pany
The
;
the
American
ExCHICAGO, 111.—Roy Fruehauf,
change and meet with Edward T. President
of
Fruehauf
Trailer
McCormick, President of the Ex- 'Company will address the lunchchange. During the afternoon the con meeting of* the Investment
Canadian group will also be con- Analysts Society of Chicago to be
ducted on a tour of the various held
Nov.-3 at 12 noon "in the
departments
of
Merrill
Lvnch
Cotillion Room of the Morrison
mill
American Thermos Bottle Com
on
Counsel, Association of Stock Ex-
the
about ,nate the 1956
ExecutIve Board.
by
space
plant which will
new
The group won all 12 of the issues for which it
Guests and speakers at the meet-
A very complete program has
been arranged for them including
a tour of the New York Stock Ex;change and a visit with Keith
'Funston, President of the Exchange. They will be guests of
the Association at the Luncheon
tour
by The
the suc¬
local
;
.
announced
was
it did not bid
ing included R.. Michael Charters,
over
at
headed
Company
,
York while they are visiting New
and
dealers
-
York City. This group of
younger
'men
in investment banking and
noon
investment
of Columbia.
than 50
of
and
on Oct. 26 for $109,990,000 of a total of
$122,305,000
Housing Authority bonds offered at competitive bidding by
housing authorities located in 10 states and the District
New
13
guests present fav-
adoption
banks
of
group
cessful bidder
The bonds were reoffered to the "public in four separate yield
registration to be used by transfer .-.
agents when registering securities ' groups—Scales A, B, C and D—at prices to yield from 1.50% to
•
which are subject to the provisions : 2.50%.
of a "Gifts of Securities to Minors
Scale A ranges in yields from 2.35% to 2.40% for bonds
Act."
1
maturing 1985-1994 of the housing authority in Washington, D. C.
In-
Association
at
Division
Rail-
more
Thursday, October 27, 1955
.
Chase Manhattan Bank and Bankers Trust
the
On Friday, Oct. 28, 35 officers state laws governing the form of
at Schwartz's at
fields it entered m 19
in 1949
A
Agents
held at
majority of the
members and
Canada.
outstanding stock of
Transfer
York, Inc., with Meeker H. Smith,
presiding.
.
;
New York Inv. Assn.
brokerage represent firms all
*
*
•
Canada
changes will reduce the National
of Hartford Group from five to
jphe regular monthly meeting of
financing until the fall of 1956 the Corporate
at which time additional stock Association was
may be issued.
road-Marhinprv
road-Machinery
.
Banking Group Wins Twelve of Thirteen New
Housing Authority Bond Issues
Hold
through
sale
of - debentures.
Present plans call for no further
.
Don't
"watch
will
help to
.
.
,
and rumormongering.
the ticker"—literally and
preserve your
the stock table
.
READ
to once
a
perspective if
week.
you
often
Too
figuratively.
It
limit
this
your perusal of
reading—pleasur¬
able in a bull market—deflecting attention from value to price,
approaches the eagerness for horse-racing results.
(3) Don't look at the market action of a particular stock
closely after either your purchase or sale of it. Don't worry about
being proved "right" or "wrong." There is one experience more
painful than losing money in a stock; namely, to see it go up after
.
you
have sold it.
(4)
Beware of
general over-glamorization and
dramatization
of the market business.
*This
tures
by
is
the
the
third
author
in
instalment
the
course,
in
a
series
"Your
summarizing
Investment
Today," at the New School for Social Research.
lec¬
Froblems
Volume 182
Number 5476-
.•,
to
Criticizes Canadian Government's
H.*W. Manning, Vice-President of tbe Great-West Life Assur¬
In reviewing
Company of Winnipeg, Can., criticizes the "regrettable
insurance
business.
Finds
U.
S.
action
this
in
"simulating."
H.
*
W.
Manning
of
Winnineg,
were
Vice-President of The Great-West
Life
Assurance
address
an
to
American
home-owned
31
com¬
come
be
interested
of
conditions
Dominion
holding
li¬
Convention in
censes.
In
addition,
Canada
counted
life
insurance
as
on
that
13,
received
from
most- "substantial;
her
;
ciates who
exports"
In Sanders & Newsom
Business
set up
in other countries.
self-
a
1
e m
turned
life
had
administer
to
the huge U. S,
Federal employees
insurance plan. He pointed
group
out
"marked
a
areas
owner¬
new
a
could
the
in
contrast"
enterprise
publicly owned
seem
in
gard
the
to
."the
Air-Lines
and
the
Canadian
Broadcasting j Corpora¬
TCA
was
"a
government
tion.
monopoly extending from coast to
coast
the other lines are sim¬
f
of
fear
■no
Alien
L.
Oliver, Jr.,
as
the
,
.
.
insured its Federal employees un¬
der
dollar life in¬
multi-billion
a
surance
administra¬
plan,
group
tion of which
turned over to
was
leading life insurance companies
doing business in the U. S; The
self-ad¬
Government's
Canadian
ministered
also
plan
Babson
W.
• r
r.
Criticizing the "regrettable in¬
clination" of the Canadian- Fed¬
ments
provincial govern¬
some
enter the
to
life insurance
business, Mr. Manning said it was
"Stimulating to observe the action
States
the United
of
Government
in
turning to the life insurance
industry—with its organized set¬
up, its knowledge and experience,
and-its
economical form of
more
administration—and turning awav
the
from
onerous
more
and more
costly self-insured plan."
;
,
Mr. Manning told the ALC—
the leading organization of North
:
American
Life
Insurance
execu¬
tive officers—that other-examples
Canadian Government "excur¬
of
radio and tele¬
its
sions into the insurance business"
Mr. Manning mentioned
nadian
Board
Wheat
of their
the; Harvard
'Graduate
the Ca¬
V
monopolies.
1
Coast Exchanges to
will
and
annuities
that
said
sold
by
Federal
-
1908
were
Government
since
"sold at premium rates
self-supporting
realistic bases as to mortality,
that
on
never
were
interest
and
expense"
and
world
need
little
very
to
.■»•■-
•
are
•
'
•••
f
■
"
»
'
1
English people have
the faith, their unionization pre¬
vents them from doing their ut¬
most.
The German people have
directed to
has
recent
had
to
years
execution
of
orders
between
exchanges has proved of
the two
value
of business
oppose
government activity in
field," Mr. Manning said.
"it
still stands, however,
:
this
But,
as
a
remainder that government
stern
intrusion
upon
give the rest Of the world
serious competition;
The Black
African has a character and physi¬
about at
once.
if Germany
height
of
it will not come
It rather looks
as
might now be. at the
its
domestic
present
ful
Dealing
he
pointed
the
dorm of
three
of
Named Directors
&
more
years,
a
market
executed
exchanges. We
This announcement is neither an
to
buy
any
to
19
Oliver D.
of Mr.
New
ford
Changes Firm Name
The
German
American
Exchange,
sea
Street,
the
205
nor a
and
to elect
X
...
Appleton.
approval
of
the
firm
American
man
name
to
approval has been made.
Appleton, a substantial stock¬
a partner in the invest¬
ment
firm
Sons
of
and
Cyrus J. Lawrence
a
trustee of St.
is
University.
Prospectus.
,
Offered as
a
Speculation
Corporation
Common Stock
Ger¬
(10^
par
value)
Now W. T. Olson Co.
provinces
name
hospitalization
schemes
their soaring costs
and admittedly very great prob¬
Price
(Special to The Financial Chronicle)
ST.
LOUIS,
of
Mo. —The
Olson,
Donnerberg
&
Copies of the Prospectus may be obtained from the
only in the States in which the undersigned may legally
Company, Inc., 509 Oliver Street,
...
lems have not prompted others to
has
&
been
$1.75 Per Share
firm
on
changed to W. T. Olson
undersigned
distribute it.
Co., Inc.
emulate them."
Despite these "not
able"
tendencies
Government
the
commend¬
business,
insurance
grown to
great
through private
With Barry
Canadian
authorities
insurance
tion's life
of
so
enter
to
the
na¬
industry had
proportions
enterprise com¬
panies, Mr. Manning said.
There
Barrett Herrick &
Mitchell
(Special to The Financial Chronicle)
LAKE
PROVIDENCE, La.—
35 Wall Street, New York 5, N. Y.
Hugh Breckenrldge has joined the
staff
of
Barry
Mitchell
&
Federal Land Bank Building.
Co.,
October 25,
1955.
Com¬
Application
holder, is
has
Trading Co.
di¬
and
The election
Interstate
Commission.
merce
-
Petaca Mining
85th
as
York, New Haven & Hart-»
Railroad, is subject to the
r
City,
special
McGinnis
solicitation of an offer
NEW ISSUE
Over¬
East
York
New
changed
a
McGinnis, President of the
for such
Mr.
21
Patrick B.
rectors
at
20 voted to in¬
number of directors
the
crease
from
of these securities. The offering is made only by the
-
.
offer to sell
f
Oct.
on
Lawrence
however, for this
Railroad
Maine
meeting
&
It will take 20
custom¬
The stockholders of the Boston
450,000 Shares
"although
that
western
our
have embarked
.
probably with some
totalitarianism, but not of
the Russian brand.
or
as a power¬
having
two
tion."
health insurance,
out
back
own
■■•!"■'
ers.
increasing efficiency in its opera¬
uprooted."
with
come
nation
his
of
accounts
Monday, Oct. 17, 1955
expect the volume over the wire
to continue to improve with the
belonging to private enterprise is
not easily
•
the
in addition to
in this area
stocks
properly
field
a
population of
could
will
Russia to swallow,
to
shares
between
our
of
opening of its Dallas offices, with
E. F. Hutton & Company, where
he
handled
orders) for '(unlisted
,
•
were
industry
the expansion
Dallas, he has been in the se-f
business continuously in
city—first with Beckett, Gil¬
& Company, then after the
war
with Merrill Lynch, Pierce,
Fenner & Beane, and since the
production, they
mass
th£
bert
when these are
hard workers, and
'
'
of
Administration
this
H.
payers' money to administer.
"In
large
a
head
was
at
curities
used for-power.
Africa and China
Africa has
the
While
in
Africa, which will have, a great
hydro¬
gen
years,
war
Depart¬
ment at North American Aviatioh
future when uranium and
and
insurance
marine
in
forge
to
he
time
which
cal strength which has great pos¬
FRANCISCO, Calif.—Wil¬
,both -the faith and the freedom sibilities. This is why he is so
Agnew, Chairman of the
;from unionization. This, added to feared in both Eastern and Cen¬
Board, San Francisco Stock Ex¬ their technical and inventive gen¬
tral
Africa.
The • British
and
change, has announced that the
ius,
is
causing them to forge
private wire arrangement be¬ ahead of the rest of Europe.- We French, however, are not restrict¬
ing and abusing the Blacks, as
tween this exchange and the Los
should not forget, however, that
;does the Government of South
Angeles Stock Exchange, • which
the United States has been pour¬ Africa.
This South African atti¬
was
installed on a 90-day trial
ing billions ■into Germany. This tude is really a disgrace to the
basis July 25, 1955 has been ap¬
can
be cut down somewhat, 1 but
Caucasian race.
V
proved as a continuing operation 'not too much all
at. once.
: *
>
One of my business associates
between
the two
exchanges by
As readers
know, West Ger¬ has
their respective governing boards.
spent many years in China.
many has voted to arm and is very His
conclusions are
as
follows:
Mr. Agnew said: "The operation
anxious for a reunited Germany.
China will free itself from Russia;
of the wire on a trial basis for
-Since this-means a bitter pill for
China
SAN
costing millions of dollars of tax¬
Oliver, Jr.
^
the
for
Contract
of the free nations. She also
an
advantage in being close
■
the
L,
Allen
A d-
in ist ration.
Except
She again leads the
help from us.
value of $5,800,000 were
berta.
He
ahead
continue
will
England
•
Continue Private Wire
A1-. 150,COO
and
Saskatchewan
War III does not occur,
World
as
Germany Is Booming
ing the period July 25, 1955, when
the wire was installed, to the close
:
has
foreign shipping.
public and the hospitalization in¬
surance
schemes
of
the
three
provinces of British Co¬
m
largest amount of water power of
any
5
;
system of selling annuities to the
lumbia,
getting reports of the thriving
of agriculture with the use
equipment. So long
state
"another
as
the public and
members of the exchanges. Dur¬
western
in
spect to the justification" of these
the
of
School
Business
been held down so long by
monopoly" and suggested that Ca¬
nadians are "wavering with re¬
Government's great
Federal
the
were
since
Dallas
'
and
of mechanical
vision services."
liam
-a
,
any
)
*
been
resident of
;
tomation and atomic energy.. The. products. In fact, I believe that
Only cloud in the sky is .credit in-r -American parents must ultimately
Ration. The English people have choose between lowering all tar¬
into
went
effect last year.
eral and
with
CBC
the
The U. S. Government last year
Oliver
Mr.
has
the Communists from
.
situation exists in connection with
*
,
.
.
"stimulating."
firm,
fective Oct. 15.
aid to France in or¬
restric¬ iffs, even with the possibility, of
tions that, with unlimited free¬ some unemployment or -reduced
and United
States
Governments
ply feeder lines and no direct dom, the pendulum is now begin¬ wages, or, as an alternative, send¬
for providing insurance for their
competition on the Trans-Canada ning to swing the other way. ■ - v
ing their boys to Europe to fight.
Federal
employees, and he de¬ route is permitted
a similar
I have been especially interested A
scribed
the
U.
S.
Italy is fortunate in having the
approach, as
schemes adopted by the Canadian
fffrf
in
ef-
partner
a
,
Roger
government-owned
Trans-Canada
has
many
people are "tired
resulted in the
getting control.
&
the association of
announced
coun¬
so
gaining considerable
our
der to keep
have
to
has
Sanders
—
Newsom, 1309 Main Street, invest¬
ment firm in Dallas since
1937,
The
overrun
its'
Tex.
j.
France, > Switzerland, Belgium,
Holland are dependent upon .1939. He is a
graduate of
Russia.
They exports to the United States.
It
Missouri Uni¬
are greatly in¬
could be suicidal for our country
versity, and of
terested in au¬ -to increase tariffs on
.
function
France
for
I believe that we must
influence.
-continue
;• busine sses.
The people
free
This
Communists
new
.
that
out."
houses, as
as"
been
times
on
includes
well
has
is try
This
.
Sorry
Poor France lacks both the faith
hand.
every
healthy atmosphere of. competi¬
tion," the situation differed in re¬
Manning
form
administration"
of
W.
H.
eco¬
nomical
and
business
with
its "more
a
business
insurance
industry
that
showed
the
to
Government
systems—one government-owned,
the
other
corporately
owned.—
the U.
ernment
other major
on
Canadian
"
J;
•.
and the desire to work.
ex-
jp a n s i o n
evident *
ship, Mr. Manning said that while
the country's two major railroad
f o r its
1 ovees.
S." Gov¬
p
Touching
cf
insurance
plan
-
'
administered
life
this to¬
DALLAS,
Am
from abroad.
had
'•.
just returning
and Canadian companies had over
than about
nations dis¬
above.
cussed
are
$6 billion of life insurance in force
o v-
the
of
any
A. L. Oliver Partner
day;..
personal asso¬
•
of
one
while the Ca¬
ernment
of
is not in any mood to do
my
nadian
G
economic future
that
ill,' Germany may join England
and try to remain neutral; but she
true summary
a
own
'
Chicago,
Oct.-
in
a
prosperity. In event of World War
so
comnanies
Life
and
competitor of ours in
mass
production. We Americans
had better worry more about our
more,
economic future than that of other nations."
our
Japan will become, more
and
foreign conditions, Mr. Babson notes that England
much grief have
from Europe, readers may
of
Reports
panies operating in Canada along¬
side an equal number of U. S.
Company, said in
the
about
more
some
further
Germany is booming, but situation in France
is not so good. Finds growing economic possibilities in Africa
and China, and concludes "We Americans had better worry
matter
expect such
economic changes in China
not
should
taking place in Europe. He
believes that both China
are
as
is prosperous,
1-
inclination" of the Canadian Federal Government to enter the
life
sudden
^
By ROGER W. BABSON
that my
He states
about.
come
readers
Foreign Conditions
"Excursions" in the Insurance Field
ance
15
(i763)
The Commercial and Financial Chronicle
.
Co., Inc.
WHitehall 4-4360
1«
The Commercial and Financial Chronicle
(1764)
...
Thursday, October 27, 1955
their
own
private correction
long before the market took
its recent spill. While this will
keep them from the new
highs tabulations for a rather
THE MARKET... AND YOU
By WALLACE
STREETE
From
Washington
Ahead of the Neivs
protracted
period, neverthe¬
they are left with a bit of
way, doing well and posting a
clear
territory before they
new
high on excellent earn¬ reach their resistance levels.
ings even in the face of a
The autos were cautious for
steady dividend payout.
the most, with market stu¬
Oils turned a bit irregular
dents trying to match price
after starting to show some
increases general throughout
signs of a new interest in for the 1956 models
against
them after the long neglect
possible sales in the face of
during which the bull market more
stringent cr£clit condilargely passed them by. t i o n s. Studebaker-Packard
Standard of New Jersey,
was able to build
up a bit of
whose 'directors don't meet
independent following, again
for a week yet, was one of the
largely because it has been so
more
buoyant at times. The well
depressed.
issue has long been held a
Among the tobaccos, which
split candidate on most such
are
another well-depressed
tabulations.
Gulf Oil and
less
The
ports
flow
of
earnings re¬
and yearend dividend
reached
action
full
tide
this
week. But from the market's
indicated
actions,
it
that the
good
news
well discounted to
able extent in
In
consider¬
specific
few cases,
a
a
mostly
had been
cases.
outright dis¬
appointment was apparent,
including Revere Copper
which merely declared a reg¬
ular payment and postponed
any
yearend action for a
month.
A Welcomed
,
Surprise
Surprise
the main in¬
was
each time they start to
the lung cancer
controversy is revived and
although with perspective
while they are listed promi¬
added, it was far from a rous¬
nently on rolls of issues avail¬
ing overall performance.
Amerada
gredient necessary to stimu¬
late good market action on
the
dividend
Chemical's
dividend in
of
Allied
news.
first
small
nearly
a
show
stock
4-for-l
years
stock
split
of
five
unexpected melon and
at least a temporary lift
to the issue. Last
year a small
special cash dividend com¬
gave
prised the yearend action.
Even
the
cases
where
the
dividends
traders hadn't been
anticipat¬
ing largesse weren't able to
buoy
the
end
—
larded this yearwith :no
less
schedule
than
entire
two
extra
payments,
market,
dollar payable
somewhat un¬
which put on a
to
group,
act better
"liberal
for
dividends,"
they have pretty well disap¬
Wm. Wrigley, which
has peared from discussions of is¬
been something of a neglected sues that are in position for
blue chip throughout the mar¬ dynamic advances.
ket runup, was able to put on
Store Stocks Liked
an
independent show of
Stores stocks, however,
strength. It didn't hurt, more¬
while equally depressed with
over, that the company—one
most nowhere near approach¬
of the few that pays monthly
an
-
able
Re-activated Blue Chip
something of
ago, was
also
were
bit of demand at times
able
quarter
century, apart from the
a
a
and half
a
a
in December
dollar payable just
ing
even
far
their 1946 peaks,
more
prominent
on
are
poten¬
tial
A
ability to do far better.
concomitant phase that
makes them attractive is that
By CARLISLE BARGERON
There
is
than meets the eye in the recent flush of
Military having to send special planes to Europe4
to bring back Senators. The public reaction has
likely been that
the Military, trying to get by on a skimpy
budget, only about
$40 billion, and trying to economize the best
it can, has these demands made upon it by
junketing Congressmen who are penny
pinchers in the matter of military appropria¬
more
stories about the
tions which
dreaded
It is
many
in
save
matter that needs
a
angles.
the
designed to
are
from the
us
enemy.
Every
some
newspapers about
airing from
there
summer
are
stories
junketing Congress¬
how they embarrass the various Ameri¬
officials abroad who have to receive and
men,
can
entertain
created
all
are
them.
is
that
The
our
impression sought to be
American
officials
abroad
dedicated to the
men
exacting proposi¬
America in
the
best
tion
of
representing
possible light and the visiting Congressmen,
just simple representatives of the American
people,
looking
in
upon
their
work,
are
nuisances.
When
the
foreign
Carlisle
Bargeron
of American busi¬
visited by their
bosses, they put themselves out to please and make a good
impression.
But when the bosses of the diplomats and of the
military, the members of Congress, go visiting abroad, the stories'
invariably crop up that they have taken up the time of the .
diplomats and the military leaders and prevented them from
going about their daily duties.
•
«,
It is amazing that newspapermen write these stories and that
their stories are printed.
Because they are the greatest free
nesses
or
riders of all.
for
Europe
travel
representatives
the American newspapermen abroad are
It is most unusual that
or
free
the Orient
in
a
or
military
a
newspaperman
leaving here
for places in the Mediterranean doesn't
They did this during the war
and they do it now.
Because of this facility small town newspapers think little of sending their men to the far reaches of the
earth as an example of their journalistic enterprise.
I have in mind at least four
organized junkets by the military
for newspapermen in the past year.
Yet they are forever writing about
junketing
members
in
,
;
;
of
forth
Congress.
In
•
plane.
>
.
the
particular
the newspapers
incident
being bandied
back
and
about the Military having to send special planes
j
for certain Senators and their denial that any such special planes
distinguished performance
the theory exists that any of
were ordered,
it is interesting to know the origin of the story. •'
after the turn of the year,
roughly in the middle of the
It came from a newspaperman who himself had just gone to
the expenditures pinched by
range
between its all-time along with the monthly 25Europe on a Military plane and who has, in fact, traveled pretty
tighter auto credit would
cent disbursements.
much all over the earth on Military planes.
high and the reaction low. A
logically find their way into
But he didn't pick the story out of thin air.
Wrigley could be an illus¬
High Military
beating such as the list has
the soft goods lines and the
officials abroad pedalled it to him.
They wanted to get in a
tration of how much
more
had
to
take
for
nearly a
snide dig at Congressmen, and from the way in which the Defense
month
stocks splits are as department stores, principal¬
doesn't
furnish
the potent
Department in Washington at first handled the story, they wanted
ly, would benefit accordingly.
to do the same thing. They have finally apologized but not until,
market background conducive market influences. It hasn't
The larger department store
after the story of their having to go to an extra expense for
had one since 1923 and, de¬
to
overly exuberant action.
junketing Senators got full play in the public prints.
In fact, there was
spite the frequency of its stocks, as a matter of fact,
something
sell well below book value
Regardless of the merits of the case, there was a time when
of a disposition to sell on the dividend payments, only this
the Military would not have dared do anything like this.
It;
and mostly at around half of
would not have dared criticize Congress or members of it.
good news, which kept enthu¬ year managed to stretch its
But
record high as much as half the peak prices reached in the
the Military now feels that it is big enough to criticize
siasm well restrained.
Congress,
bull peak of nine years ago.
to browbeat it.
a
dozen points ahead of the
Nor did it
I
help that the
The Military is feeling its oats and that is bad for this sohighwater mark of 1940. The Technical Considerations
dividend news, while
called peace loving nation of ours.
No longer does it go before
calling
Earnings per share have con¬
From
a
technical
stand¬
for a rather general
Congress importuning it for appropriations.
It demands this or
lifting of sistently run ahead of the
that and all too many members of Congress are shaping their
'the
point, it is still up to the mar¬
average yield to sounder 1940
political careers on how close they are to Military leaders, how
figure ever since 1947,
levels, actually showed little and dividends have been ket generally to indicate what
close they are to this General or Admiral or that one. Too many
the next move will be. In re¬
members of Congress are anxious, in a
signs of wanton generosity by
campaign, to have a letter
equal to or better than the 15 of recommendation or a pat on the back from a Military leader.
managements when measured
tracing roughly 40% of the
year
ago
level ever since
In the matter at present in
the public eye, the Military
correction on its best rebound
against the vastly larger earn¬
1948, but the market enthusi¬
happened to pick on a couple of influential Senators and have
so
far, the industrials have
ings being reported.'
had to backtrack.
But the fact that the Military attempted to
asm
passed it by largely. The
succeeded in landing in dead
belittle these Senators is significant.
stock is a favorite with those
Merger News
center traditionally. A sizable
I do not mean to say that Senators and members of
Congress
Another of the traditional hunting quality of a "behinddo not abuse their prerogatives and throw their weight around. >
gap overhead was left in the
the-market" nature.
But this is a characteristic of important men and I submit that,.
market props — mergQr news
selloff, which tradition de¬
Senators and members of Congress are important men and that)
—also was given a lukewarm
mands
must
Aircrafts Point Upward
eventually be
the Military should be subservient to them, not the other
way;
reception, no case more
around.
For group action the well- filled in. However, chart
divergent than the Mohawkwork rather favors a test of
depressed aircrafts have been
Alexander Smith deal in the
the downside resistance level
standing out rather consist¬
Edmund J. Cashman Opens
r
L LI. Sees. Formed r-'rj
carpet industry. On the news
recorded earlier this month
ently. Even in spotty mar¬
1.1.1. Securities Corporation is
MINEOLA, N. Y.—Edmund J.
Mohawk
promptly posted a kets the air section has been before any important i sus¬
Cashman is conducting a securi¬ engaging in the investment busi¬
new
high while Smith able to offer a
tained new rise could be gen¬ ties business from offices at 178 ness from
offices at 76 Beaver St.
couple of ex¬
slumped to a new low as the
erated. Time is running short Second
Street
under
the
firm Officers are John C. Van Eck, Jr.,
amples of better-than-average
terms were
Edmund
J.
Cashman President; Jay G. Merwin, Vicebefore the traditional year- name of
digested. But even -strength. For the
technicians',
Company.
the fanfare in Mohawk sub¬
President; Raymond L. Brittenend rally is scheduled to get
some of them
including Boe¬
ham, Secretary and Treasurer. Mr.
sided rather
abruptly as both ing and Douglas have reached underway, if such a course Forms Bryant Fischler Co. Van Eck was formerly a partner
issues dropped back .into a
will ,be followed this year.
in Steckler & Moore. Mr. Merwin
critical
recovery prices that
BROOKLYN, N. Y.
Bryant
was with
R. W. Pressprich & Co.
backing and filling rut.
But this time it could merely Fischler and Dr.
could
Raymond
M.
-
s
'w
T«
U
V
'
•
•
—
spur new
Among the chemicals the
reaction to the
"a
news
brought
mixed reaction. Union Car¬
bide
holders,
obviously,
expected better
spite
the
dled.
news
est in them. This stems from
recovery
cate
the
to levels that indi¬
new
strength isn't
had merely the normal seesawing
and de¬
but could be indication of im¬
good yearend payment, portant new
issue was
roughly han¬ had reacted
a
Schering went the other
bullish inter¬
below
their
interest.
some
1955
30
Both
points
highs
in
postpone
tion
a
of what
final
determina¬
is ahead
in the
article
time
views
do
not
coincide
as
formed
Bryant
to
engage
in
a
securi¬
ties business.
expressed
in
necessarily
at
with
of
"ChronicleThey
have
those
are
this
presented
those of the author only.]
F. B. Mack
any
the
and Sutro Bros. & Co.
Fischler & Co. with offices at 2113
Avenue U
market's future.
[The
Chaitin
FLUSHING, N.
Mack
is
business
Sanford
conducting
from
Opens
Y.
—
a
offices
Avenue.
Fred
B.
securities
at
159-04
Conway Brothers Branch
DES MOINES, Iowa — Conway
Brothers, 205 Equitable Building,
Des Moines, Iowa, announce the
opening of a branch office at 115A
1st Street S.
E., Mason City, Iowa.
The office will be under the
agership of Rae E. Wallace.
man¬
Number 5476
Velume 183
.
..
Vt
(1765)
The Commercial and Financial Chronicle
LETTER
TO THE EDITOR:
Reginald M. Schmidt
Public
50 Years in Wall St.
most
of
one
respected members
on
Electric Bond and Share
Schmidt,Vice-
Electric
President of
Blyth
on
50th
t
the company intends to register
Company Act.
The final act paving the
way for
this application was an offering of 525.036 shares of
United Gas common stock to EBS stockholders at $28 a share in
When
business.
As Manager
Schmidt
has
been
Reginald M. Schmidt
the
Held by
EBS
pieces of revenue
including
the
New
York
Authority
major
of
American
United
(1935), the Triborough Bridge &
Tunnel
Authority
(1937),
the
California Toll Bridge Authority
York
State
Mr. Schmidt started in the
& Struthers on Oct.
he returned to New
York
in
charge of Estabrook's
municipal department here and
has specialized in municipals ever
In 1921,
since.
in
He formed his own company
which
1926
with
merged
was
Ziegler & Co. in 1929
Emmanuel & Company.
Emmanuel
form
to
He
joined Blyth on Sept. 1, 1932,
was
made
a
Vice-President in
1941 and
Director in 1953.
a
of the earliest of the Wall
One
the rev¬
Schmidt is
charter member and Past Presi¬
Street fraternity to enter
bond
enue
a
dent
(1950-51)
York
a
of
member
Garden City Golf
Side Tennis
West
the
and
Exchange Lun¬
Stock
cheon Club, the
Club
is
Club of New York, the
the Bond
New
Municipal
of the
He
Club.
Bond
Mr.
field,
Club.
Robert Frey
Joins
Montgomery, Scot!
PHILADELPHIA,
Pa.
—
& Co., 123 South
Broad
Street,
members
of the
New York and other leading stock
exchanges,
commodity
and
nounce
that
Robert
with
associated
now
U.
an¬
Frey
them
as
is
a
registered representative.
Mr.
Frey retired as Assistant
Vice-President
of the
Pennsyl¬
Banking &
Trusts, now the First Pennsyl¬
vania Banking & Trust Company
on
June 30, last.
Active in the
banking field for many years, Mr.
Frey
was
also
Secretary
and
vania
Company
Treasurer
sociation
Treasurer
ciaries
Division
Trust
and
Secretary
and
of the Corporate Fidu¬
Association
of
Philadel¬
He has also been active in
phia.
the
the
of
for
Pennsylvania Bankers As¬
of the
American
Institute
33.5
323/s
20.7
3.95
12.7
•1?
10.4
1.98
6.4
.v
mm
_
_
3.58
11.5
0.41
1.3
$163.1 $31.06
—
18.8
2.1
mm
100.0
_
of Bank¬
annual
meeting
held
June 22,
reported that the backlog of service contracts
industrial
and
construction contracts were
in the active
negotiation stage.
The anticipated major expansion in demand for electric power
in the next 15 years, Mr. Walker said, will be helpful to Ebasco.
He pointed out that by the end of 1970 use of electricity is ex¬
pected to be three times what it is today, and that power compa¬
nies are expected to spend $70 billion between now and 1970 for
'
construction.
/
the outlook for American & Foreign Power, he
stated that the anticipated large growth in the population of Latin
Regarding
America, which is expected to increase by 60% in 20 years, should
further increase the demand for electricity in Latin-American
countries.
He also
pointed out that in two major countries, Argen¬
toward development of their own oil
benefit the economy of both
countries, as it has in Venezuela, Colombia and Peru. Factors of
this kind should help to increase Foreign Power's income from
investments in Latin America, some of which have been undertina and Brazil, the trend is
resources
which
should
materially
a number of years.
Electric Bond and Share now has
productive for
the problem of reinvesting
its sales of United Gas stock and other holdings of
subsidiaries which it was required to dispose of. Part of
the proceeds of
former
placed in a diversified portfolio of high-grade
marketable stocks, but the company also plans to invest rather
the funds have been
opportunities present themselves.
of a
large petro-chemical plant near Pensacola, Fla., in which Bond
and Share is a partner with United Gas and National Research.
By the end of the year EBS will have invested about $5-$6 million
in this situation. A 40% equity investment has also been made in
the Peace River Glass plant near Edmonton, Alberta, designed to
manufacture glass fiber mat and other materials. Production of
Substantial progress
pipe
outstanding financial
time recently stated
our
about
at
be
never
repaid,
i
interest
service
million in
assets
were
the
for
Blyth & Co., Pacific
Building.
Join? B. I. Barnes
(Special- to The Financial -Chronicle)
BOULDER, Colo.—Alvin U Mil¬
ler is now affiliated with B. I.
Barnes, 2007 Thirteenth Street.
eternity?
Oct. 1,
G. Alfred
individual
an
is
termed
why treat
an
ment bonds any
We
modern
or
corpora¬
"frozen"
a
Bailey Now
With Mercantile BaRk
assets, for an unredeemable prom¬
of
1955.
will
paid. Thus, one-third of the total
deposits of that bank is in "frozen"
tion
'
Biddeford, Maine,
always be refunded but never re¬
ise
SPITZ
RICHARD
Fortune's Rocks,
asset,
asset of govern¬
differently?
men
be
may
ef¬
ficient but not sufficient to estab¬
lish to
when
enternity
we
label, an asset,
a
know that it will never
without fiscal amortiza¬
be repaid
tion, in fact.
In
our
quest for security have
the right of heritage to
we
insecurity
to
bring
economy,
our
our
families, our government, by pil¬
ing up an indebtedness now in the
realm of $275 million and blithely
go on our "never had it so good"
C. Alfred Bailey
way, without any thought of re¬
payment, but always postponing
DALLAS, Texas — C. Alfred
the day for payment, by extend¬
Bailey has been elected Viceing the promise to pay, by re¬
President. of the Mercantile Na¬
funding, refunding, refunding!
tional Bank at Dallas. Mr. Bailey
George Washington admonished
formerly conducted his own in¬
the
people
of
America to avoid
vestment business in Dallas under
the accumulation of debts and not
the
name
of
throwing upon Company.
posterity the burden which we
ourselves ought to bear," and dis¬
Joins
charge the debts incurred in our
C.
Alfred Bailey &
"ungenerously
own
It
was
Theirs,
Adolphe
Louis
advocating
nold and
sinking fund for re¬
a
Honnold Staff
DENVER, Colo.—Earl G. Tilton
has become connected with Hon¬
times.
Co., Inc., 524 17th Street.
NEW
ISSUE
300,000 Shares
Republic Electronic Industries Corp.
Common Stock
construction of three
($.10 Par Value)
Offering Price $1 Per Share
The
for
ings was due in part to larger income from American & Foreign
Power Co. and from other securities, which more than offset the
from the
decreased holdings of that issue. A further decline in income from
United Gas will occur in the second half. At the present dividend
rate of $1.50 for United Gas, income from the present stockholdings
would approximate $960,000 compared with income of $2,165,000 in
the 12 months ended June 30; this substantial decline will, of
course, be partially offset by income from reinvested cash.
How¬
ever, for the present EBS earnings may decline somewhat from
in
decline
The
dividends
company
cash
from
United
military,
consumer
needs.
your own
broker
or
obtained from
y
the undersigned.
Underwriter
Keene and Company, Inc.
New York 5, New York
80 Wall Street
1
HAnover 2-6113
will soon initiate a program of paying semi¬
Such dividends will be "tax-free" for
(due mainly to historic book losses on the investment
Power)—i.e., they will be subject only to
eventual capital
gains tax rather than to current
Please
to the
send
me
Common
without obligation
a
copy
of the Offering Circular
Stock of Republic Electronic
relating
Industries Corp.
income taxes.
likely that the initial payment in December will range
between 55c and 60c, bu^t future payments should improve as the
large backlog of cash is invested and begins to bring in a more
substantial return than is afforded by the interest on commercial
Name
(PLEASE PRINT)
Address
——-
etc.
At the recent
price around 26, an annual dividend rate of $1.10
yield a return of 4.2%, and with an estimated eventual
future payment of perhaps $1.25, the return on the present price
would increase to over 4.7%.
would
and
industrial
dividends.
It appears
paper,
business of the
electronic products
Offering Circular may be
Gas stock resulting
in American & Foreign
an
Company is in the
manufacture and sale of
in the previous period. The increase in earn¬
compared with $1.29
many years
with
ly." Do we want the security of
repayment or the insecurity of re¬
funded promises with a $61/& bil¬
lion service charge from here until
in govern¬
repayment,
or
deferring it indefinite¬
to
mount
without fiscal
that,
bonds,
amortization
recently announced plans to place
10,000 kw. atomic
reactor power plants in South American countries at a total cost
approaching $15 million. Ebasco Services will handle the designing
and building details. Approval will have to be obtained from the
State Department, the AEC, and a Congressional committee as well
as the governments of the countries where plants are to be located.
Regardless of potential profits, this move should improve business
relations with the Latin-American governments and thus better
the general outlook for the company.
In the 12 months ended June 30 EBS earned $1.31 a share
orders
once
annual
is
that
$6V2 billion per annum is
glossed over; a recent examina¬
tion of a savings bank financial
statement shows $2 million of $6
American & Foreign Power
at
loans and investments.
zell
<
on
debt of
the June 30 level.-
PORTLAND, Ore.—Paul C. Del-
will
refunded
but
often.
The
stand¬
now
billion
$275
payment of the governmental debt
of * France,
who said he had
reached the,, conclusion that- "to
defer for a period beyond 30 years
the extinction of debt was tanta¬
is being made in the construction
is now getting under way.
wrap
ing. While with the Pennsylvania
Company, Mr. Frey specialized in
With Blyth & Co.
;
r;
heavily in special situations as
mat for
Mont¬
Scott
gomery,
10.40
...
the
electric
After six years, Mr.
Schmidt joined Estabrook & Co.
as
its midwest representative as
a
salesman in Chicago and De¬
troit.
34.6
54.6
141/8
President George G.
of Ebasco
Services was nearly 50% higher than at the end of 1954, and about
9% ahead of the year previous; while the construction backlog
showed similar gains of 60% and 30%, respectively.
Important
At
Walker
1905.
20,
ing
so
$7-a-week office boy
with Libbey
$56.5 $10.74
_
—.
100.0
Inc
Total
bond
as a
business
—
4.9
Foreign Power
Having quoted mkt. valuations
Not having quoted market val.
Thruway.
'
that the national debt
ment
—
53.5
■
and New
Authority
Power
Assets
Short-
Corporation
Services
Total
of EBS
Other Investments:
York
New
Authority,
State
Gas
Ebasco
(1939), Chicago Transit Author¬
ity
(1947),
the
Pennsylvania
Turnpike, Ohio Turnpike, Massa¬
chusetts
Turnpike,
the
New
Housing
&
Share
(Mill.)
Price
Term Investments
financing,
Port
and
Assets
Current
Net
Value
Market
1
nearly
% of
Per
% Common
id entified
bond
One of the
writers of
follows:
were as
*
Chronicle:
Together with the dividend of June 13 (1.8 shares of United
100 shares of EBS) this step reduced the company's
prominently
with
Editor, Commercial and Financial
obtained,
640,498 shares or 4.97% of the total
outstanding amount. This met the SEC's requirement in interpre¬
tation of the Holding Company Act, that retention of less than 5%
does not constitute control.
As of June 30, the company's assets
1932,
if debt remains
a
Investment
holdings of United Gas to
partment
r.
is
says
"frozen asset," and should not he
held by banks.
Gas for each
de-
since
the
June.
of Blyth's mu¬
nicipal
exemption
under
t
m>e n
Attorney of Biddeford, Me.,
unredeemed, it becomes
the company's application to the SEC for
on
exemption under the Act having gotten underway in September.
in the in-
v e s
hearings
company,
anniver¬
sary
Richard Spitz,
Share, which recently celebrated its 50th
and
Bond
Company
anniversary, has now virtually ended its status as a utility holding
Co.,
his
&
Inc.,
all
Shonld Be Paid OH
By OWEN ELY
Oct.
a
Club
M
Holds National Debt
Utility Securities
its
reception in the Bankers
in honor of Reginald M.
at
20
saluted
Street
Wall
Phone.
C-l
18
The Commercial and Financial Chronicle /
(1766)
Britain's Wage
r~
'
Close Arrangements for Loan
Spiral
'.
.
Thursday, October 27, 1955
for Allegheny County Sanitary Authority
By PAUL EINZIG
■
y
[
In pointing out the wages spiral is the most important factor
contributing to inflationary conditions in Britain, Dr. Eir./ig
|
cause,
r
'
theory that excessive factory building is the main
decries
and lays this to increase in consumer expenditure. Dis¬
cusses influence of instalment selling, and concludes with high
domestic consumer demand in Britain, there is no adequate
inducement for
'
.
towards the de-
in
condi-
inflationary
of
velopment
*
secondary importance.
In ••
any event, Britain's salvation lies ,
in an increase in the productive ;
capacity of her industries. Ex- ,
pansion of. industrial capital in- *
is
Many factors
—
have contributed
tions
*
:
LONDON, Eng.
but the wages
spiral is by
Britain,
f
the
a r
as
remark-
how
able
.
trouble, were it not for the much <■
larger
expansion
of
consumer •
purchasing power resulting from:
thismayseem,
is
contributes
doubt
no
towards creating excessive con- /
sumers' purchasing power. But,in .
itself this would not cause much
amongst them,
Obvious
of
vestment
most
important
it
,
real export drive.
a
people the operation of the wages spiral.
are
trying to Industrial investment is causing
explain
Brit- inflation mainly because consumer
ish
inflations demand absorbs an unduly large
'on other proportion of the country's remany
grounds.
sources.
gov-
ernment
could be carried out without causing inflation,
excessive
by
profits
and capital gains is held responsi-
Expansion
ble by Socialists, excessive capital
investment
by Keynesian econ-
omists, excessive expansion of in-
buying by others.
Beyond doubt, excessive governspending
is
evil
it
tenance
of taxation
necessitates
at
thing,
the
an
because
main-
practically
its war-time maximum level. But
precisely
because
the
excessive
public expenditure is covered by
excessive
taxation, it does not
create
inflationary conditions. The
additional
purchasing power
high government ex-
created
by
penditure is mopped
and
direct
indirect
by high
up
entirely due to the spectacular in¬
of earnings, by industrial■;
Owing to the increase
wage rates, addi-<
earnings,
and
bonuses paid by employers cornpeting with each other for the
creased
role
profits
of
tax
Treasury.
the
these in-
largely
the
for
collectors
themselves
the
sur-
,
the taxation authorities
render to
half of their
for
play
They
two.
or
taxation,
earn
their
own
earnings, and retain
use a large part of
the other half.
What
reaches
shareholders in the form
of
dends is again subject to
the
divi-
high in-
tax and surtax.
Only a very
proportion of the increased
come
..
.
small
business
profits
causes
demand
creased
for
an
in-
consumer
&oodsThe
situation
cerning
different
is
capital
free of tax in Britain.
part
of such
And
in
any
gains
case
con-
which
gains
are
But
a large
reinvested,
is
their
in
tional
during
supply of labor, millions of
wage-earners are now in a position to buy costly consumer durable goods against deferred pay-
the capital gains were
largely offset by capital losses due
to the marked decline of equities,
Capital investment is the favorite
scapegoat of Keynesian economists, because they utterly fail to
realize that conditions have funda-
increases
other
or
the
in
creases
employees,
television sets,
etc.
business would
in
Chairman
stalment
his
of
out with the pro-
posal of large-scale public works
to
relieve chronic unemployment,
"iai
that
jjiupuadi,
end
he
the relative
expenditure
business
cuiu
tu
sought to exaggerate
importance of capital
as
the
trends.
initiator
The
need
were
doing
vari0us
alleged
causes
of inflation
WOuld be useless unless the wages
spiral could be brought to
During
recent
wages
years
exceeded
creases
in-
in
the
rise
the
halt,
a
cost
of
more
the rise in the output. Addi-
living
index,
sumer
the
in
goods.
demand
a
the
and
even
is
gen-
corresponding
of
volume
con-
amidst
Moreover,
inflationary atmosphere in the
industrial firms
domestic markets,
overseas
easier
marxets.
to
mestic
it
demand
than
to
increase
of
exports.
So long as the domestic
'for
demand
is
capable
uphold
their
their
prophet's
irrespective
changed conditions.
George Cline Smith, economist for F. W. Dodge Corpora¬
says this forecast does not anticipate any construction
boom, but simply a normal growth in line with the expansion
For this
about
as
reason we
excessive
the main
compared
consumer
cause
with
hear
factory
so
(Special to The Financial Chronicle)
building
of inflation. Yet
the
increase
of
expenditure, this factor
if
^fnia+innc
nonunion^
DENVER,
will
,
u
.
.
,
,
T
+
^
expansion
of
con¬
1J>UUU>VUU
n e. ^ "ousmg
Dr.
George c. Smith
De
~
,.
tcrials and equipment.
construction
estimate
a
.
seems
fb
as
be
great problem for the period
any
whole
a
year are estimated at ™ore than
and that some 300'000 to
sizl 800'000'
400 000
this
this
size
will be
tQ
housing units
fae withdra
are
not
-
avail-
for
that
a
cate-
foronuct»
forecast,
"is conservative.
Broadway.
ticipate
a
Dr. Smith said,
It
does not
an-
construction boom,
families
have
their homes annually, and
not
oniy
on
on
residential
most other types
should
substantially
factors
household
hined
with
market
household
rise
to
1960.
housing demand, the
these
estimated
begin
after
other
many
are
from th
Non_farm
year
formations
*n
While
influence
of
pressure
formations,
com-
the
disappearance of
exjsting housing through demoli-
homing
decade
constrUction.
.
total construction
1
joined the staff of Intermountain Securities, Inc., 1714 So.
any
II
financing of construction will
each
million
building but
outlav of $600 billion.
<Thio
Tf
of
construction
on
nine
demands
manufacturers of buildi g ma-
making
put
moved
.
minimum
f
l° De no reason 10 lorecast inal
household formations in the past
a
the only lmportant
aspect
of
population,
Americans are traditionally restless, and they will continue to
move about.
In recent years, eight
or
C°uncll *s a national organ atio
?
There
but there
tn
and
handled
are
prudence.
n™rf"
hp
little
affairs
management
reasonable
credit stringency
n
be
Parmrin
nf
_
10
."
should
fiscal
b^Tmand that net lathed
^ be non-farm
from the fact
'But growth is not
nnn nnn
F1}™ wi!*
bulv:-
there
difficulty in financing it
tremendous.
wn?in
n ^18-,
,°1
gory,
Colo.—Lloyd D. Au-
the
moderate, relative to
nation's
credit
The pressure that
increase
increase
population
the same periad' s ?m.? ~
0
the
with
and Australia
able, $150 billion seemed to be
much
Singer,
for
™t
building
materials and
construction
labor and
services. In
absorbing
proportion of the
Joins Intermountain Sees.
Fisher,
agents
this
is
economy,
over-all
of the nation.
repair
of
fiscal
struction
Dr.
of
words
entirety,
are
10-year period would actually be
relatively modest figure.
tion,
mucn
is
satisfy the growing do-
which
here*
a
=UeSl^tiStesheth™tcrCe°as;
ians, who consider it their duty
to
Final
made at Mellon
he
^nyf efforts directed against the
Charles
"Since
em-
so
Bank;
Scribner,
Building Outlays in Next Decade
Dr. Smith told the audience he
employment-creating government such a large
estimated that S450 billion would'
expenditure
on
capital
projects output, there will be no adequate be spent for new construction in
has long ceased, and Keynes him- inducement for a real
export drive the coming decade, and that alself
would
undoubtedly
have without which the balance of pay- though adequate figures on the
realized this. Not so the Keynes- ments
gap is bound to continue, present level of maintenance and
in
and
,
after
Shown
Authority; and John F. Laboon, Authority Ex¬
ecutive
Director.
Seated,
left
to
right,
are
John J. Kane, County Commissioner; Edmund
Ruffin,
Authority
Chairman,
and
David
L.
Lawrence, Mayor of Pittsburgh.
as
long-
years.
Mellon
of
but simply a normal growth in
Smith, economist for F. W. Dodge line with the expansion of the
delivered a strong attack on ex- Corporation,
construction
news nation.
cessive
wages
demand, without and market specialists, the Amer"Most
people
have difficulty
realizing that, had it not been for ican economy
realizing the magnitude of that
those demands, he would not have during
the
been in a position to claim credit next 10 years
for an expansion of his turnover will pour some
S
and of his profit.
$60 0
billion
-
immediately
without
came
dent
Deane
phasized with pride the sharp in¬
in his firm's turnover, —According to Dr. George Cline
and
crease
increase
1929, he
next four
the
Company,
(standing, left to right), James N. Land, Senior
Vice-President, and A. B. Bowden,* Vice-Presi-:
which
own
Trust
banks.
of
the expansion of the total national
the
houses
during
Billion
of the largest in-.
one
finance
erated
in
report,
Authority,
the
and
group
Construction Economist Forecasts $600
be moderate. This
annual
for
serve
Bank
the
-
fact is not realized by many peo-
pie.
headed
of
Sani¬
(Pa.)
it through the sale of its
bonds
arrangements for the loan
.
.
National
arrange¬
group
a
Allegheny County
financing"
repay
term
Surely the basic cause is the
inflationary wages spiral, but ,for
which the expansion of instalment
in
earlier,
,
by
The loan, secured by the immediate
area.
"interim
will
be-
money
more
the
loan
purchase of government securities, will
deposits and subsequent instalments on bigger and better cars,
consumer
years
burgh
in-
of
officials close
vast
a
available to pay the initial
comes
tional
Seven
forms
public
$100,000,000
a
Authority, which will bui'd and maintain
new sewer system
in the Greater Pitts¬
tary
*
and
for
banks to
23
earnings of indus-
mentally changed since Keynes
published his "General Theory"
1936.
Financial
ments
After each round of wages
ment.
recent
months,
basic
overtime
scarce
trial
year
owing to high
business firms that
But it is almost
crease
Profits have increased consider-
But,
an
busi-
immediate
obvious
is
0f inflation.
employees.
taxes.
ably during the past
instalment
of
ness
cause
stalment
ment
1
equipment
industrial
of Britain's
Einzig
Conservatives,
.
modernization
much-needed
the
ex-
penditure is
blamed
Paul
-
If only workers and their
unions moderated their appetites,
Ex-
cessive
"providjne
th
new
j
*
.
the
f0r
80ple
rest
plus
the
'standard
improving
.
to„neetZin
wants
of
us
™ expect, win require a
P
tod
as
lirpj
^
Prn„Natinna!
con_
of liv-
have
renuirea
a
year.
construction
meas_
Product
relationship of
to total output, $450
new
does
j
cause
thereTeems'tobf Utile tads
I? seems to be little basis
l°r expecting either. On the other
the historical
billion of
forecast
•
?
to rise to at least $500 billion by
1965- In the light of these figures,
and
this
•
large
President's Council
Advisers exoects it
The
Economic
•
+
not ^vision a major war or de-
come
^unMng af about$385Son
of
"Obviously,
of
construction in the
handi t does
away boom
t
a
but actually would
all0.w leeway lor a mild recession
during one or two of the 10 years."
Skyline Sees. Adds
(Special to The Financial Chronicle)
P.
DENVER,
Colo. — Norman
Goldberg has been added to the
staff of Skyline Securities, Inc.,
1719 Walton Street.
Volume
The Commercial and Financial Chronicle
Number 5476
jlj82
Continued
from
New Answers to Old
rid War
trols*
over
led
II
direct
to
con¬
prices, and
wages,
the
distribution of goods ranging from
ket
Questions
on, we are
[:'Worry Over Controls
That experience led
jacket
controls
of
strait-
a
the
on
econ-
;omy'|s( productive capacity, and the
k
pried, that would be exacted in
terms of individual liberty if the
harness of wartime economic con¬
trols f
carried
were
the
into
over
postwar years.
v
Such
a
straightjacket of
.
.
.
the
.economy-is
with
wholly inconsistent
political institutions and
our
private enterprise system. The
our
'history of despotic rule, of author¬
itarian rule, not merely in this
.century but throughout the ages
.is acutely repugnant to us.
.taken
frightful
a
misery
1
and
It has
human
in
toll
confines of
When
the pensioner, the retired
workman, the aged — those least
saver,
who has to
up
when the inevitable
with
degradation.
The transformation of this
coun¬
dictation of
economic life.
worker, all suffer. That
doesn't mean jobs.
It means just
the
individual gets submerged in
The dignity of
in
strates the results that
tained
through
.directed-
highly
a
demon¬
be ob¬
can
system which is
a
toward
not
releasing,
and abilities.
The fruits of these energies and
Tabors
are
shared
in
growing
shackling,
energies
ter, but by the
'market place.
The
of the general
and
wants
in
open
needs
is
are
to
cannot
markets
admit
It
one.
requires
no
ket that came into existence
Powers
ing the war and continued until
the Treasury-Federal Reserve ac¬
cord of March 1951 turned us back
the
among
millions
stead of being
affected
centralized in
a
in¬
few
The basic concept of
the-market
system has remained with us since
the
remained
the
have done
our
well
extensive remod¬
some
as
entailing
loss,
penalties
k
and
fects
distortions.
are
are
to
rigging
prevent
essential to
and
Other
a
both
be
as
me
There
that
sound structure.
remodeling
has
well
as
as
our
that
am
family
glad
to
tifying
and
should
place than
a
order
mail
more
manual of
"Those
arms or a
a
catalogue.
Let
it
be
said, to our credit, that American
economic action has often been
which arq
jectives.
For these
others,
-
and perhaps
reasons,
market- system has
continuously
our
modified
throughout this country's history.
Ideas of market places function¬
with no rules or regulations
except the "law of the jungle"
ing
have, quite justly, gone the way
of the great buffalo herds. When
we
speak today of "free markets"
we
of
course
mean
markets
that
relatively free, as the
freedom of speech we enjoy is it¬
self only a relative freedom. The
are
only
characteristics
essential
have
markets
of
nevertheless
free
been
retained.
make
Tittle
fellow,'
have
to
a
high¬
they
for the
should ex¬
plain to the holders of savings
bonds, savings deposits, build¬
insur¬
rights,
just how and why a rise in
prices of, say 3% a year is a
small price to pay for achiev¬
ing
'full
employment.'
They
ing and loan shares, life
ance policies and pension
the
much
ity depends, if it is to be
long-term
in
debt
accept¬
repayment of
will surely be
badly depreciated coin."
of
thus
course
avoid
of
such
Under
formula
a
we
in¬
the
defeated.
are
such fatalistic
no
philosophy.
fail
vative,
on
to
bankers, your contem¬
in the business and fi¬
nessmen,
poraries
admitted¬
believe conser¬
especially
since
almost
but
we
proven
of
estimates
reserves
Aug. 1, 1954, and, substantial ad¬
value
apply the brakes
sufficiently and in time, of course,
we shall go over the cliff.
If busi¬
we
$9.55 per
half of the above values are based
reportedly been
since
added
If
of
assets
These figures are
ly rough
ditions have
Your Responsibilities
the
of
value
loan
share.
deflation,
Today's generations will accept
nancial
re¬
erate,
that
alone
serves
loan
The
date.
the
of
company's
re¬
be estimated to be at
may
least much
the current
over
mar¬
ket value of the
company's stock.
the most interesting fea¬
One of
tures of this
tion
by
field
lactor, with make-up privileges.
of
and
monetary
precautionary
prevent inflationary
to
is
would
to "have
bound
effects—if
onerous
ac¬
ex¬
some
it
,it
did
not
ineffective
be
and
futile.
Those who have the task of mak¬
ing such policy don't expect you
to
applaud.
as
one
The Federal Reserve,
writer put
it, after the re¬
cent increase in the discount rate,
El Paso agreed to
•
ing royalties
on
a
sliding
who has
the
ordered
punch bowl
removed just when the party was
really warming up.
the
unless
But
business
the
com¬
munity, leaders in all walks, ex¬
hibit moderation, prudence, and
understanding, then we will fail
and
a
to fail.
deserve
lieve
will be
we
deep
so
in
I have
abiding faith in that
and
undefinable
meaningful
phrase we frequently use — "the
American Way of Life."
if they ever
yet
the
14th
Nor
Whitehall Sees. Opens
-ideas and the substitution of new
basic
board.
that
are
we
parts of the
free world that is the most sig¬
nificant aspect of world-wide re¬
covery and progress outside of the
iron curtain.
And that, in turn,
vastly brightens the hope of last¬
principles
in
Securities
Whitehall
throwing
laws
or
principles over¬
It is the return to first
mean
ones
Gas
is
tion
engaging
business
securities
a
at
52
Wall
"A
LUBBOCK,
Young
Texas
—
is conducting
established
all
from
ing peaee.
Fields
Lewis
By first principles I mean timetested basic concepts of the mar¬
the
&
name
of
securities
a
in
the
under
Securities
Building
Young's
Company.
competitive
private
that degree of govern¬
ment " interference
or
regulation
abuses and
return to these
prevent
necessary
to
excesses.1
We
see a
concepts here and abroad because
concepts have
where there has not
other
failed,
troubles
are
been
yet
revival of these concepts
and
a
economic
acute.
net income
own
have
discarded
answers—that
to
some
principles
ciety,
our
of
we
some
have
those
wrong
returned
fundamental
under which our so¬
institutions, have flour¬
will
company
approximately
much
as
if it had drilled its
as
wells."
The company estimates than an
of
average
during
be
some
the
30 wells per year
five years will
by El Paso in compli¬
with its development con¬
next
drilled
ance
tract.
El
Paso
of
wells
has
advised
the
its intention to drill
the
under
contract
this
year.
There
three essential prob¬
are
lems faced
by
a
production
com¬
severely penal¬
stockholders,
urgent
additional
dividends
because
continuous
and
financing
the
need
for
make
may
remote.
Many statistical comparisons of
acreage,
or
proven
Greenberg, Strong
(Special to The Financial Chronicle)
basic factors
DENVER, Colo. —Cletus W.
Bowers, Jr. is now with Green¬
reserves,
are
appreciation.
berg, Strong
1700 Broad¬
& Co.,
way.
The
With Hamilton
Manage'nt
DENVER,
Bakula
is
Colo.
now
Management
—
Walter
M.
Hamilton
with
Corporation,
4 4 5
Grant Street.
Building.
P.
joined
Lipton,
essentials.
lot
a
of
In
addi¬
romance,
ing prospects and so on. In this
particular case we do not believe
the
facts
justify
a
need
any
higher
romance
price
for
to
this
security.
capitalization
management
(Special to The Financial Chronicle)
has
what the writer
are
is
market
lots of acreage in promising areas
such as Paradox Basin, some min¬
The
DENVER, Colo.—Cecil R. Mid-
Robert
there
cause
is
simple:
3,227,000 shares outstanding with
Joins R. P. Lipton
dleton
above
which
considers the
tion,
(8pecial to The Financial Chronicle)
As I suggested at
we
Joins
the
arrangement
receive
sub¬
company's
Under this
misleading because the true fac¬
tors affecting earnings are lack¬
ing. Texas National possesses the
ket place and the development
with only
for
the
of
leasehold gas reserves.
izes
L.
Sam
offices
business
&
long-term market has been
Lack of the latter
Young's Sees. Co. Opens
•
Oil
pany—find gas, get a market, find
drilling and development money.
Street, New York City.
many
of
enterprise,
in
offices
from
contract,
Johnston
of
stated, among other things:
definitely
stantially
23
Corpora¬
at
thereafter,
liquids
In commenting on this
company
discarding of old
the
does
beginning
and
year
the President
were.
.
produced
gas
scale
also to pay one-third of all
above 50 degrees gravity.
cannot be¬
I
blind.
overrid¬
pay
all
on
five cents per MCF up to 10 cents
is in the position of the chaperone
and demand can
is hardly neces¬
longer valid,
the
on
policy,
cesses
to go that far in order to ap¬
no
stay
prudent.
or
credit
moderating excessive
It
world,
the
In
widely
more
the outset, the
should also explain to all of us basic problems, the questions, re¬
—little, big, and just plain or¬ main pretty much the same al¬
ways.
The answers are different
dinary Americans — what be¬
—and no one would be so rash as
comes of our whole system
of to
say that we have ultimate solu¬
long-term contracts, on which tions for all of our problems. We
can
say confidently, I think, that
so much of our economic activ¬
great emer¬
been willing to
departure from our mar¬
we
a
seek
inevitable in
ed in advance that
It is true that in a
gency
would
who
is motivated by concern
"Free Markets"
when
ly dynamic economy, by debas¬
ing the savings of the people.
If their advocacy of this course
determined by balancing material
advance against other human ob¬
been
year
promote 'full employment' by
creeping inflation, induced by
credit policy, are trying to cor¬
rect structural maladjustments,
important
occupy
Congressional
a
he said:
that in
a
properly
equipped home library the Bible
alone,
before
beliefs
committee earlier this
by bread
the
live
cannot
man
I
included
usually
say,
Our
own.
have,
York, put his finger on the
fallacy in this contention in tes¬
then
emerging real-
and
repealed.
are
in
New
and
cepts, the idea that deep depres¬
sions are divinely guided retribu¬
tion for man's economic follies,
the idea that money should be the
master
instead
of the servant,
have been discarded because they
little inflation—a creeping
associate, Allan Sproul, President
of the Federal Reserve Bank of
do nothing about
nothing to prevent
we
do
aftermath
problems of healthy
economic
growth
sensibly and
constructively. Laissez faire con¬
contend
who
some
an
expressed
about
proach
this
are
If
we
evitable
altogether abolished seems to
as fanciful as the
notion that
sary
promoting our goal of
maximum employment.
My able
refused to accept eco¬
nomic goals as their sole objective.
That was true in older generations,
inheritances
a
able
have
ple
be
inflation—is necessary and desir¬
come
because the American peo¬
about
restrain
too
or
the law of supply
deflation.
necessary
are
if
credit and monetary
more
and
done
It has been nec¬
period to combat
the forces of inflation and of
in
essary
distillate.
Jeremiahs,
inflation
swings of the business cycle. The
idea that the business cycle can
namic economy.
Competi¬
freely functioning markets
one thing, and rigged markets
another. Rules and regulations
tive,
it,
business,
that
ruinous depressions are not in¬
evitable, that something can be
half years the
a
evitable.
labor and farm organizations
During the last
rewards.
four and
whole
a
ization
held
Federal
Reserve has pursued a monetary
from time to time,
We have in the past done some policy characterized by flexibil¬
remodeling for the admirable pur¬ ity, or prompt adaptation to the
pose
of correcting structual de¬ sharply changing needs of a dy¬
as
upon
policy, there is
dur¬
markets, like free econo¬
and
too
liance
mies, have a way of going down
as well as up, and thus reminding
us that our system is one of profit
although we
eling of the structure
v
of
cornerstone
society to this day,
Free
It has
founding of the nation.
not
little
tween
in the direction of a freer market.
authority.
in
persons
dispersed
are
loan has been made
a
company
company is the con¬
side¬ tract between it and El Paso
lines, concerned only with mak¬ Natural Gas. Under this contract
ing profits, letting the government lease, rights for gas above the
bear all of the responsibility and
base of the Mesaverde formation
the
burden
of guidance
of the on 26,409 gross acres were as¬
economy, we shall surely fail.
I signed to El Paso at no cost as of
am
as weary
as you are of pious
Jan. 4, 1954.
This company re¬
platitudes and after dinner tained all rights below the Mesa¬
icy, backed by flexible tax and preachments about leadership and verde and all liquids below 50
debt
management
policies
and financial statesmanship. But the degrees at any depth.
aided by a host of built-in stabil¬
fact is that the government isn't
El Paso assumed
all develop¬
izers, has completely conquered something apart and remote from ment
and
operating
cost
and
the problem of major economic
you. It is you—all of us. If those
agreed to develop fully in accord¬
fluctuations and relegated them to responsible for major decisions in
ance
with official spacing rates,
ancient history. This, of course, is
business, finance, labor, agricul¬ all acreage under contract, within
not
so
because
we
are
dealing ture, are irresponsible, govern¬ seven
and one-half years.
with human
beings and human ment can't compel you, short of
El Paso agreed to take or pay
nature.
moving in the direction of dicta¬ for a minimum of 25% of the open
While the pendulum swings be¬ torship, to be reasonable, or mod¬
flow potential on an
80% load
easier to
gains in terms of personal liberty.
decision
could
they
because
inflation then prevalent—not,
strain on my
be measured in economic terms
imagination to suppose that there
alone. In addition to the advant¬
might be some, even in this audi¬
ages of efficiency in the use of ence, who occasionally feel a nos¬
economic resources, there are vast talgia for the pegged money mar¬
of
it
feared
only
our
choice
right. That's one reason it
make a mistake than
proves
hopeless
defeatists
and
cynics,
calamities are indeed in¬
control involved in
policy
monetary
bad.
the ! conse¬
like
when
we
accept these visita¬
inevitable. If there are
from direct controls to restoration
'
mand
^matched
an
from economic de¬
Following World War II,
were troubled by the move
some
accepting the consequences of
Naturally
svstem
a
ineffec¬
recovery
cline.
that choice, whether good or
capacities and de¬
supply
conclusion
instrument for promot¬
ing
choice, but also the responsibility
quences
of
advantages
where
the
to
came
that
is, without being so drastically
exerted as to plunge
us
into a
I am not unaware that freedom; devastating depression. ♦ • ;
Nowadays, there is perhaps a
entails certain hardships on the
nervous
constitution. It gives us tendency to exaggerate the effec¬
tiveness
of
monetary policy in
opportunity to choose, but it also
requires the making of choices. both directions. Recently, opinion
The pleasure of having a choice to has been voiced that the coun¬
make is counterbalanced by not try's main danger comes from a
only the necessity for making a roseate belief that monetary pol¬
>
a
similar property
war, we must
as
banks,
holding reasonably
equivalent to 3V4
cents per MCF of proven reserves
and 50 cents per bbl. on oil and/or
to
Texas National would be
as
that is, and retain our con¬
cept of freedom in a competitive,
private enterprise economy.
for
est
those
in
tive
do so,
the
of
processes
and
recent
a great
some
that monetary policy was
independent
judgments
of
the
community as they are expressed
in the market place.
We cannot
abundance, not by primitive bar¬
I Lihe Best
There will
defeatists,
no
doubt, who say that because
there have always been disastrous
depressions and more disastrous
economy.
cynics
policy during
In the depression,
number
.
try from a wilderness to
^developed
civilization
the
be
the
swings
years.
authority for the free and
Secuiity
enough
been
monetary
few
The
some, of
who think we must go
through the wringer periodically
___
course,
toward
sus¬
temporarily, .but it can¬
permanently,, repealed. It
is.always with us just as is the
law of gravity.
When peace is restored we do
not continue to ignore it. We can¬
not substitute the judgment of a
Wringer
attitudes
law of
be
the
always be
2
enough
wide
not
will
Continued from page
rather
have
The
pended
Through
There
tions
opposite.
There
the necessity to win the war.-
supply and demand is
of
.banker,
small details of
even
our
the
aftermath
in,
Going
always
businessman,
sets
ished with incomparable benefits,
benefits not merely material.
to purge
And
themselves.
defend
to
deflation
comes
war
a
willing to put
able
a
all sorts of economic controls and
to growing
the effect of
has
mood
our
man
home for the
bomb shelter.
sugpr to steel.
concern over
but
structure,
been that of the
leave
jobs, no reasonable man would be
against it. But as I have frequent¬
ly emphasized, inflation seems to
be putting money into our pockets
when in fact it is robbing the
19
.(1767)
if'
would in fact make
If inflation
6
'page
<
1,965,000.
holdings
totalling
The stock of Texas Na¬
of
tional Petroleum Co. is traded in
Paramount
the Over-the-Counter Market and
the
staff
is currently selling at about
$5.
20
(1768)
The Commercial and Financial Chronicle
banking authority, the bank's 700
Martinsville
stockholders
The consolidated bank has
News About Banks
terest
CONSOLIDATIONS
NEW
of
the
-
Y.,
N.
the association
Martin
of
formerly
J.
cut-nine
par
and
announced
with the company
Mr. Fox was
Chief
Examiner
of
undivided
Washington, D. C. He will
capacity of Auditor.
At
luncheon
a
Oct.
20
installed
was
in
August
•
in
"^Quarter
as
Century
Lincoln
Savings
lyn, N.
Y.
Club
The Club
Jersey
has
and
cers
the
of
presence
trustees
of
the
stock
57
of
The
scribed
watch
elected
John
Heinrich.
the
At
to
recent
The
New
share,
of
the
the
bank
Flatbush
($2
stock).
Banking
on
Sept.
stock at
in
cash
the
capital
and
$0.89
Albany,
Bank
of
$4,269,000 in
426,900 shares, par $10 each, to
$4,509,000 consisting
of
450,900
shares
of
the
same
sued
market
dividend
Bank
&
thereto
Trust
referred
01
Banking
to
The
capital
Commercial
of
pany
in
our
Albany,
creased from
000
the
&
National
Trust
N.
Y.
Com¬
in¬
was
dend of
U.
$300,000, according to the
Treasury Department Bul¬
of Sept. 19.
In our Sept. 29
S.
letin
issue,
1316,
page
wherein
refer-
"ring
to the merger of the Mer¬
chants National Bank cf White¬
hall, N. Y. into the National Com¬
mercial
bany,
Bank
the
noted,
was
the latter
& Trust Co.
Al¬
capital
indicated
was
as
$3,-
000,000.
*
The
*
Marine
Western
N.
Company of
Buffalo, N. Y.
at
approval,
from
New
the
on
York
Sept.
State
29,
Bank¬
ing Department to increase its
capital
stock
from
$17,500,000,
consisting of 875,000 shares, par
$20 per share, to $17,700,000 con¬
sisting of 885,000 shares of the
Public
was
also
Marine
ern
the
value.
par
issued
Trust
New
Authorization
Sept.
30
to
the
Company of West¬
York for
Citizens
the
merger
National
Bank
of
of
1953.
The
item
Development
our
Plan Bank
(common
effected
of
on
of
the
Morris
Haven, Conn,
$260,000)
National
of New
Banking
Haven
$1,000,000)
(com¬
under
charter and title of the latter.
the
effective date
of
capital
stock
of
the
At
the consoli¬
dation, the consolidated bank
a
was
Sept. 30 with the New
Bank
stock
of
New
stock
Association
mon
to
*
»
consolidation
Haven
referred
issue of July 21,
page 284.
*
A
relations
further
$1,325,000,
$300,000,
had
in
of
other
duties
in
and
said
that
Mr. Coch-
on
as
director
of
advertising and public relations,
*
*
*
7,
the
Washington,
D.
C.
dividend
in
taken
was
1953
year-end.
t°
the
bank
000. In
1
year-end
Similar action
stock.
last
posal would
nnrt
of
$6 150 0oo
of0ck
by
the sale
amount
of
of
at
the
present prothe bank's capi-
S.m $960,000 to $1,000,-
letter to its
a
and
The
raise
states
stockholders,
that
it
plans
to
rf uU1?nnn °£.lts shares
2,000 this Decern-
y
riiuiil? ]1 Payment of a stock
hXS pa° °T Share fi°i each ?4
^in JprH avaLu* QW°^ld r|+main
hnlde™nrpln
nJ thl' Ji
ant
snprial
a
George
mpptina
Munsick
Tvn?P°SQ
President^ex
"the Sectors 'we^
prompted to recommend the plan
incident
to
the
growth
of
the
bank's business. At the end of last
June The Morristown Trust Com-
pany's
total
deposits
were
present market price of the bank's
stock, the proposed stock dividend
to
is
stated
about
proposal
would
$1.70
is
per
be
equivalent
share. If the
approved
the law firm
Acceptance
counsel
Car
and
director
Manufacturing
of
Co.;
Messrs; Meyers and Matthias will
serve as General
Counsel for the
new bank.
-
of
by
the
stockholders'
meeting,
and
approval is obtained from the State
*!*
,
new
A charter
by
the
rency
It
made
was
that land has
known
Oct,
on
19
been
purchased in
Petersburg, Va. by the Bank of
Virginia at Richmond, Va. and
of
the
that
bank
in
Petersburg, said
building will be started
the
office
was
ginia
established
the
mond and
was
1922.
offices
Vir-
of
outside
Rich-
The
bank
has
other
Norfolk.
While
a
in
*
„
^
issued
was
bank
new
a
Oct. 10
on
the
Cur¬
in Chicago
formed under the title of the Con¬
National Bank of
Chicago,
capital of $500,000 and sur¬
plus of $250,000. In the primary
organization S. L. Seltzer heads
a
the bank
as
President, while D. E.
Spore is indicated
*
Cashier.
as
*
to
$1,000,000
effective
amount having been
brought to that figure from $500,000
as
result of
a
$500,000 stock
a
dividend.
$
brief
these
reference
columns
was
Oct.
6,
divided
profits
the First National Bank of Lynch-
tional Bank of Utica, Mich,
Pointe
Bank
Mich,
(capital
of
*
(cap¬
the
Grosse
Grosse
of
less .than
not
«
*
As of Oct. 6 the Third
National
Bank
of
Nashville,
Tenn.
in¬
capital from $3,000,000
The enlarged cap¬
$3,500,000.
ital results from
of
siock dividend
a
$500,000.
❖
The
%
recently
National
Kosciusko,
of
Oct.
the
bank
to
for
open
15.
The
C.
are:
Attala
Kosciusko, at
County, Miss.
Aitala
scheduled
on
%
chartered
Bank
A.
busi¬
officers
of
Bell, Presi¬
dent; I. T. Shaw, Executive ViceC. D; Maddox, Vice-
President;
President
Cashier.
bank
has
and
C.
C.
Thompson,
The charter for the
issued
was
Oct.
on
new
11.
capital of $150,000 and
plus of $100,000.
a
The
National
new
Commerce
La.
in
It
sur¬
dedicate
its
ties
Oct.
on
President
nounced
of
Oct.
three
of
Dale
the
new
The
Commerce
20
in
of
Parish,
it
would
banking facili¬
21.
that
Bank
Jefferson
announced
Graham,
bank, an¬
National
Jefferson
Bank
Parish
will be capitalized for more than
$1,000,000. Mr. Graham is also
President of The National Bank of
Commerce in New Orleans.
He
said
that
The
Commerce
a
legal
in
National
of
leans
and
of
The
Commerce
services.
will
The
Jefferson
offer
is
New
all
Or¬
banking
office
is
at
Road.
Labarre
Parra,
of
National
in
head
and
Wensles
Bank
Parish
Jefferson
affiliate
Bank
J.
Executive
Vice-
President, and F. M. Leguenec, Jr.,
Vice-President and Cashier, will
have their offices in this structure.
The
Harahan
office, located at
Jefferson Highway at Oak Street,
will
be
under the
direction
of
Frank
A.
Greco,
Assistant
Vice-
President. The Metairie branch at
2030
Metairie
Road
will
be
directed
by
Joseph
Vice-President,
Victor
J.
S.
Delaney,
? Clay,
Jr., Shelley
Walsmley, III,
Louis
H.
Kurzweg,
Vice-Presidents
of
East
Jef¬
ferson's
bank, Nu.ma J. Barrois
and Harry E. Woods are Assistant
Cashiers
of
the
head
office,
and
Edward Smira is Assistant Cashier
of
the
Metairie
initial
Road
capital
office.
paid
was
in
The
the
$1,050,000, and
includes 52
by
Louisianians.
*
The
Pointe,
$625,000),
National
Tex.,
Bank
of
formally
quarters
new
*
^
Texas
Houston,
$150,000), the Utica Na¬
and
the
$100,000.
30, when the Rochester
$250,000),
th^at
common
stock, par $25
each, surplus of $300,000 and un¬
its
ital
National ,^Bank
It is stated
the organization group
»
A
consolidation
uniting four
Michigan banks became effective
of Sept.
business
shares of
shareholders
*
as
State
Schuster and R. M.
the
5,
of
enlarged consolidated bank has a
capital stock of $300,000 in 12,000
are
creased
$30,000, became
close
*
The capital of the First National
Bank of Springfield, 111. was in¬
Oct.
the
(capital
*
1409, to the consolidation of
page
for
sumers
with
of
National Bank of Rochester, Mich,
.
*
"!*
Comptroller of
opened in Novem-
Richmond, Roanoke,
News, Portsmouth and
Newport
made
first Bank
in
opened
Oct. 19 in the
on
$10,000,000 Texas National Bank
Building, Main and Polk Streets,
it
was
announced
by Harris Mc-
burg, Va.
merged into the National Bank of
Ashan, President of the bank.
Fred
Florence, President of the
the
Detroit,
American
(capital $1,000,000) and
Lynchburg Trust & Savings
Bank
(capital
$400,000),
be noted here that the
effected
First
under the
National
it
may
merger was
charter of the
Bank
and
under
the title of the First National
Trust & Savings Bank of Lynchbur^ At the effective date of the
consolidattion
the
consolidated
tal
sbaI?ns of,/ommon stock
^acbi Aurp
par
$1,000,000
Profits of not less
an ?2°6,000.
*
tional
Bank
dale,
Na-
of
Martinsville, Va.,
of
$200,000,
Bank, of Fieldale, at Fiel-
common
and the
First
Va., with
$100,000,
stock
common
became
stock
effective
30, under the charter of
of
Sept.
Mich,
(capi¬
Bankers
Association,
the
(and also President of the Repub¬
the
merger
effective
enlarged
lic
National
Bank
of
ficially opened the
capital stock of $23,318,390, di¬
into 2,331,839 shares,
par
$10 each; surplus of $68,681,610
Dallas), of¬
of the Texas National.
a
vided
and
undivided
than
profits of not less
$16,419,875.
*
*
*
National
and
of
Bank
of
the Industrial
Detroit
have
item
with
Nov.
Consolidation of
tional
Bank
of
by a three-day
period.
One of the
pioneer banks of the State, Texas
National, founded in 1886, will
of
of the basement, part
the street
level
and
all
of
the
National
Bank
story skyscraper.
The building,
jointly owned by Texas National
voted
to
call
15,
to
the
posed merger appeared in
sue of Sept.
29, page 1317.
*
featured
open-house
second and third floors of the 21-
reference
*
quarters
The open¬
Mich,
stockholders'
on
was
new
Detroit,
meetings to
to vote on
consolidating the two institutions,
subject to final approval by the
Comptroller of the Currency. An
held
ing
occupy part
Directors of The Manufacturers
the First
National Bank, and under the titie of the First National Bank of
Detroit,
the
were
National Bank of Detroit reported
be
*
Consolidation of the
with
of
special
*
at
$22,831,250). At
date
bank reP°rted capital stock, of
WW,000, divided into 120,000
$29,-
300,000 compared with $27,730,000
on
June 30, 1954. Based on the
it
will
Russell Pack¬
Merchants
general
$2 050 000
the
of
and
Chairman of the
,
the
to
stotk t0 lhe ^amount o± $2,050,000.
a
year
scheduled
Company and President of Inland
Investment Corp.; and Thomas J.
Carroll, a Chicago attorney and
in-
title
the
institution, and E. A. Matti-
dent
National
CreaS6d "S Cap"al fr0m ?4'100'000
tQ
ber,
The Morristown Trust
Company
of Morristown, N. J.
plans to increase its
capital funds
payment
$750,000
TToard
of the
Matthias, partner in
in-
early in 1956 for completion the
Department.' Mr. following year.
The Petersburg
Buchanan also takes
ran's
plained
in
formerly
Russell C. Buchanan will succeed
Mr.. .Cochran
in
the
Business
for
were
Bank
date
paid-
a
ing Co.; E. A. Mattison; Russell H.
a
development has taken
post in the commerciaU'preliminary plans are underway
department. Mr, .Cochran, for- the construction of a new
it is added,, who joined the bank
banking home for The Bank
in
in 1948, has headed up the Business
Petersburg.
George R.
Dupuy,
Development
Department
since
Vice-President who is in charge
at
merger
G.
business
Springville, N. Y. into the Marine
effective Sept. 30.
Plans
Trust,
the
is
of
loan
,
same
Bank
result of
a
over a new
through
Trust
Y.
Newark
Robert
by $40,000
*
received
of
of
the effective date of
on
merger
the
of
of
by
Vice-President
charge
$3,000,000 to $3,300,9, by a stock divi¬
Sept.
on
of
Company
announced
Lssex
item reported that Bradford Cochran,
*
Bank
o{
Qct.
the
complete com¬
savings
service.
Directors will be Mr.
Dower, who
j£s capital as of Sept. 21,
$300,000 to $600,000.
E£jective
opening
mercial
creased
■
of
of
bank_ will offer
a
at
Sept. 30 under the charter £nd
on
ness
r
and
Cowan, President of the bank. The
"Sept. 1 issue, page 887.
*
as
dividend
*:•
Meyers
&
Matthias, J.
F.
Rosenthal, Executive Vice-Presi¬
xhe Farmers Nationai
stock
slock dividend of
a
be President. The bank
will have quarters on the Plaza on
the Chicago "Daily News"
building
at 400 West Madison Street. The
*
P
Lan¬
of
*
Beaver Fall
total
a
was
tne National
were
'
#
;
of
will
son
County,
*
from
oTthe National Newark
Newark
Co.: of
proposal with respect
was
Delaware
$3.36.
of October 4 it
Hudson, N. Y. into the State Bank
Albany, under the title of the
The
for
value,
h;B?,rlt Eyening News"
indicated that
pro¬
of
latter.
$2 plus ad$136 at cur-
Trust
have
Bank
of
stock
common
effective
to
#
foj; Dec. 1. Thomas W. Dower
Oct
would
new
withJ common
$150,000 and the* Slate
Trust Company of Maysville, with
was
the
new
12
of
an-
Co.
#
be "Chairman
and
Ky.,
of
creased its
Thrall
viding for the merger of the First
National
of
regular
a
On
of
Announcement is made
with
11,
Street
&
amount
will begin operations with
in surplus and reserves of
also is¬
authorization Oct. 3
an
rent
share
each
of
value.
par
The Banking Department
2Vi%
ditional stock worth
Y. from
N.
to
Trust
that
Chicago's newest
bank, the Madison Bank & Trust
Company, which it is announced
offices, eight of them
in Philadelphia, one in
Glenside,
Montgomery County, and three in
to
nual cash dividend of
State
total
in
ital
dividend
Bank
$578,928.
of
organization
Street Trust.
$7,107,252,
Interboro
were
Street
time, of
consideration
Giving
\
11,
Broad Street Trust Co. deposits
were
$103,260,000, and Interboro
deposits $9,589,000.
Upon cornpletion
of
the
merger,
Broad
the proposed increase in the stock
stock would receive
the
Co.
of
sale
❖
Mr. Parker and J.
were
stock div¬
a
$100,000.
Broad
fundsr—-of--Broad
-
Co.,
those
to
.
Department announced
approval of a certificate pro¬
viding for an increase in the cap¬
of
Trust
as
$50,000, while an addi¬
$50,000 was realized from
resulted from
Trust,-in charge of the In^-
-capital
re¬
caster,
Ohio,
from
$100,000
to
$200,000, became effective as of
Sept. 30. The additional capital
Trust
As of the close of business Oct.
Ohio,
$200,000,
An increase in the capital of the
Mr. Miller would also
Broad
of
Na¬
with
Lancaster National
Co., would become
of
11, the Milford
of Milford,
*
of
Maysviile,
of Maysville.
stock.
Maclay, who is Treasurer
interboro, would become Vice-
of
2% stock dividend
a
the
Thursday, October 27, 1955
.
of
tional
Interboro
Vice-President
*
capital
a
idend
share
Street
ff
Oct.
.
stock
cap¬
$500,000
ously.
capital resulted from
pruce
the
122,400
shares.
This, in effect, produced
a
dividend, based on the market
30
stock
street
0f
a
$100,000
previ¬
Part of the increase in the
Mr.
Broad
Presidents of
increased
and
stock
$2.89
State
to
of
share
one
County.
common
Bank
ported
exchange
one
poarcj
terboro Office.
be sub-
approval
of
tional
Miller, as
Parker, Sr., Cfiair-
Trust
become
stockholders.
s
final
also
&
Company.
paid in addition to the regular annual cash dividend of $2 per
*
York
must
of
The mer-
for
stock.
the
directors
of
stock
Bert R
0f
ggnk
made
meet-
for
value of the
#
be
street
as
man
was
Lincoln, Mr. Bieder¬
❖
would
dividend
At that time
is head teller.
mann
weI1
dend in the 92-year'history of the
bank was paid in January 1955.
Fox; Secretary-Treasurer
Office of The
of
three-fourths
0j interboro
First National's first stock divi-
Vice-President Ar¬
were:
C.
directors
Broa(]
Mr. Nick-
November
the
at
bank
meeting of the Club, other officers
thur
0£
con-
addition toi the
mitted
bank.
the
favorably
in
dividend
stock
Lincoln's
At
an-
the Board after it has been
in
principle
by
the
Comptroller of the Currency. The
offi¬
presented
was
member.
new
has
approved
Twenty-Five lYear Club, presided
at
the
luncheon, when an in¬
the
J.
ing of
August H. Wenzel, newly elected
President
2 k %
definite
Hooper, President of The
Lincoln, congratulated Mr. Bied¬
in
Com¬
announce that
the two banks
supervisory authorities.
ger plan caBs for the
said that the amount of the
erson
John W.
ermann
N.
regular cash dividend.
retired.
are
City,
meeting
least
at
Brook¬
now
members, 16 of whom
Trust
p,an pf mer.
subject to approval of the
shareholders of both banks and of
sidered another stock dividend of
on
The
of
of
Street
haye agree(J upQn
nounced that the directors at their
Biedermann
Bank
Broad
As
1r°sPect Park, Pa.,
Si Nickerson, PresFirst National Bank
t
of
member of the
a
Horan, Jr., President
"UIU
less
not
"
ident of The
serve
his honor
F.
stock
ger,
October
*
of
the
""
in the
•
the
Ilenry
in 50,000
stock, par $10
each, surplus of $625,000 and un¬
divided profits of not less than
$75,000.
shares
en¬
ooro Bank and Trust Company of
«9
nrofits
nnn
$450,000.
than
the
Administration
of
be
and
of
stock
compared
nnnnnn
$25 each; surplus of $2,000,000
™
Fox.
Credit
Farm
has
will
ital
shares of 53,000 of common stock,
-
Brooklyn
of
of Philadelphia, and J. Hay-
pany
Allen, President of
Kings County Trust Company of
each
reason
Hubert J.
A.
notified
*
CAPITALIZATIONS
Chester
be
dividend.
Bankers
and
which
by
BRANCHES
OFFICERS, ETC.
REVISED
'
to
titled
NEW
will
the number of any full shares and
the amount of any fractional in¬
.
pro¬
our
and
from
the
floors.
pany
Continental
fourth
Maysville,
Na¬
at
Com¬
space
through the 10th
The Continental Oil Com¬
will
occupy
the 11th through
the 20th stories.
«
*
*
A stock dividend of
State
Oil
will have office rental
is¬
*
the
Bank
pany,
fective
Oct.
$150,300 ef¬
10, has enlarged the
capital of the First
Ta,t'onal Bank
Volume 4^2
Trust
&
Number 5476
The Commercial and Financial Chronicle
Helena,
of
Company
..
.
(1769)
*
*
Western
With Colo. Investment
(Special to The Financial Chronicle)
*
Bank
San
of
'Company
Butler, Wick Adds
(Special to The Financial Chronicle)
to $750,000.
Merger of the Valley National
Bank
of Alhambra,
Calif, with
First
Robt. Connell Adds
(Special to The Financial Chronicle)
from $600,000
Mont,
DENVER,
Colo.
Eldon
—
White has been added to the staff
Trust
and
Francisco
be¬
effective on Oct. 17, it is an¬
nounced. Simultaneously, Les Alcame
/ len, formerly President
Valley National, became
the
of
YOUNGSTOWN, Ohio—Charles
D.
D.
Arnott
Wick &
of Robert J. Connell, Inc., 818 17th
Street.
Mr. White
with Brereton,
previously
was
Rice & Co.
with
now
and
members
of
Midwest
the
Stock
Colo.
—
Opens Planned Inv Program
JAMAICA, N. Y.
Eugene
A.
Jones has become associated with
Butler,
Colorado
Co., Union National Bank
Building,
York
is
DENVER,
Investment
2951
Ex¬
Jasmine
was
New
previously
Street.
with
Co.,
Mr.
Inc.,
Jones
Robert
Hamburger
curities
Warren M.
—
conducting
is
business
se¬
a
offices
from
at
under
the
na$ae of Planned Investment
Pro¬
84-69—150th
Street
J.
Connell, Inc., and Brereton, Rice
Co., Inc.
&
changes.
21
grams Co.
Execu¬
tive Vice-President of First West¬
Announcement of the merger
ern.
Mr. Allen's appointment
and
made
T.
by
Coats,
P.
of First Western's board
tors. He said that
was
Chairman
of direc¬
banking author¬
ities1 and the shareholders of both
banks have approved
The
dation.
four
the consoli¬
Alhambra
bank
has
banking offices, which have
become branches of First Western
effective
at
Oct.
ness
the
17.
opening of busi¬
of
Employees
the
National, it is stated, are
being retained without loss of
seniority. Reference to the plans
for the merger appeared in our
Sept. 8 issue, page 982.
Valley
*
Andrew
*
J.
*
Mcintosh,
Vice-President
of
Assistant
The
Bank
of
California, of San Francisco, died
-
Oct.
on
in
10
Providence, R.
family were
I.,
where he and his
siding following an
had undergone. He
of
re¬
operation he
63 years
was
Mr. Mcintosh joined The
on Oct. 1, 1948,
and became Assistant Manager of
age.
Bank cf California
the
Department in Jan¬
Foreign
He
1950.
uary,
elected
was
Vice-President in
sistant
Well known in the Far
ber, 1952.
East and in Import-Export
Mr.
As¬
Decem¬
Mcintosh,
prior
circles,
joining
to
The Rank of California had served
'
in
the
Foreign" Service
Chartered
tralia,
of
Bank
China
and
of
India,
from
the
Aus¬
1913
to
1948; the last 12 years as Mana¬
ger of that bank's various offices
in
Tientisin,
Peking,
Hongkong,
'
Manila.
and
*
The
sale
of
increase
the
National
of
to
the
has served to
capital
of
City
the
Hills,
Beverly
$500,000 to $1,000,000,
effective Sept.
19.
*
#
*
of the First National
Sunnyvale, Calif, into
Merger
of
Bank
stock
new
Bank
from
First
#
of $500,000
amount
Calif,
it
Bank
Western
and
Trust
Company of San Francisco, Calif,
.has been approved by sharehold¬
it is announced, and was to
place Oct. 24. This was made
on Oct. 19 by T. P. Coats,
ers,
take
known
Chairman
Board
j
vale
bank
First
of
•
will
Western's
The
become
and
Western
that
cated
First
of
Directors.
of
First
the
Sunny¬
office
an
is
it
indi¬
National
Bank's employees
will be retained
capacities without
seniority. First Western
in their present
loss
has
of
office
an
in
adjacent Moun¬
the
Behind
Ships that Set the Pace...
tain
View, and it also has two
offices in nearby Los Altos.
The
new
Sunnyvale office will bring
•
to
the
52
cities
and
of
number
towns
served
by First
Western.
*
James
G.
*
❖
Fowler,
Vice-Presi¬
dent of the Puget Sound National
Bank
of Tacoma, Wash., has
elected
all have
Every Atlantic Blue Ribbon Winner since 1910—
swift, sleek S. S. United
States
by the board of directors
...
Good
Executive Vice-President.
Mr.
1925
The world's fastest
Shun IV,
reason!
—the
...
joined the bank staff in 1942
after
having
ment
business.
elected
•
the
•the
to
has
.and
been
the
bank's
In
been
and
As
a
000 of
tion of
of
invest¬
he
directors
of
the
The
race
for its
\
down—when
:
protection.
★
★
i
■3
★
factory,
your
look to the leader
farm
in motion—in
or your
your car,
home—you, too,
can
for lubrication.
Committee.
jresult of the sale of $500,new
a
stock and the declara¬
stock dividend
of
Bank
of
$500,-
Seattle, Wash.,
Washington,
was
increased, ef¬
'
1
MOBIL
OIL
C O M P A N Y,
I N C
.
in
fective Sept. 20 from $3,000,000 to
$4,0CO,CG0.
SOCONY
LEADER
IN
LUBRICATION
Affiliates: General Petroleum
H
J,
your
horses and the work horses of the seas—
are
who know marine machinery look to
Wherever there's progress
Two-fifths of the world's freighters ..;
chips
men
^
.
mobil's
it
'000, the capital of the Peoples Na¬
tional
.
Secretary of
Executive
%
submarine.
When
of the world's first atomic-powered
was
Vice-Chairman
ft
•
1951
board
since
Board
in the
Maiden voyage
-socony
at stake—when schedules must be met
socony mobil
and
common-
lubrication.
are
records
propeller-driven boat, Slo-Mo-
skimming water at 178 mph
thing in
one
master touch in
from the Mauretania to the
been
Fowler located in Tacoma in
as
in Oil
Master's Touch
a
California
FOR
NEARLY
A
CENTURY
Corporation and Magnolia Petroleum Company
-
-
22
The Commercial and Financial Chronicle
(1770)
TO THE EDITOR:
LETTER
Condemns Dr. Willford I. King's
Plan of Preventing Depressions
f
Wisconsin Natural
quieting effect
difficult
000 of Wisconsin
of
conduct
sound
international
the
letter
of
from
entitled
Prevent
We
"Can
pression?",
of
he
the
stated
in
the
800,000
new
should
reach
plete; (3)
ing
fol¬
as
device
is
as
which,
if
plied
ly,
must
prevent
malign
se-
of
quence
from
events
George F. Bauer
developing.
When the
ces¬
expansion
begins
new-spending-power
of
as
volume
action, the total
demand deposits, and
of
hence the new-spending-power to¬
tal, can be prevented from shrink¬
ing, and recession
in
the
be
can
as
tary history."
GEORGE F. BAUER,
Vice-Chairman,
Chamber of
11
maladjustments
require
Commerce, Inc.
King would
Y.
the
Hold Joint
^Secufities Dealers
its
annual
meeting at
Mid-Pines,
States
and
dollar.
In
of
with
the
This method has
North
Caro¬
in
lina
the
United
has
helped greatly in
reducing the buying power of the
Germany,
Council
and the South
Carolina
during and
Mu¬
nicipal
Com¬
mittee.
Louis
Mr.
V.
frequently
disproved theory of the relation¬
ship of the supply of a nation's
lina
currencies to prices.
Light
of
however, reveal the
lack of any close
relationship be¬
tween the volume of
money and
tivity,
the
on
prices
other.
that
assumes
dexes of
Then,
because
and
consumer
too,
in¬
wholesale
have
the
Sut¬
Caro¬
Power
the
McDaniel Lewis
&
Com¬
pany,
gave
principal
address.
Officers
one
the
were
for
elected
President:
.
McDaniel
the
coming
year
follows:
as
McDaniel
Lewis
&
Lewis
Co.,
of
Greens¬
boro, N. C.
been
remarkably
steady for the last three years this
Vice-President: Henry J. Black¬
ford, A. M. Law & Co., Spartan¬
"makes
promising the outlook for. burg, S. C.
scientific action
preventing any
Treasurer: Joseph H.
Sanders,
serious aftermath when the
pres¬
Robinson-Humphrey & Co., Co¬
ent boom
collapses;." This assump¬ lumbia, S. C.
tion, however, evaporates be¬
Secretary:] James E. Holmes,
cause there was a
stable index of
Jr., Alex Brown & Sons, Winstonwholesale prices for the
period Salem, N. C. •
1.923-1929, especially for 1927-1929
New
officers
for
the
North
and yet it was followed
by an eco¬ Carolina Municipal Council were
nomic collapse.
elected as
,
follows:
A
has
policy of the'kind
in
mind
highly
could
disquieting
exchange
value
terms
foreign
of
Dr.
also
effect
of
the
on
dollar
currencies
a
leigh, N. C..
Vice-President:
the
in
and
make
difficult the conduct of in¬
ternational commerce on a sound
cording
to
which
in
managers
King
theory,
ac¬
few
money
government
circles
a
are
supposed to be able to sta¬
bilize the price level and to main¬
tain
on
economic
and
supply
off
of
a
to
would
put,
as
a
turning
^pigot
wholesome
the
paragraph
by
the
currency and without
its nature—this writer
regard
minder
health
through
Jr.,
son,
re¬
bank
outstanding
loans
aggregat¬
for capital expenditures
Britt
&
bonds
will
be
redeemable
terest
each
in
R.
Wisconsin
Natural
Gas
is
Co.
principally in the pur¬
chase, distribution and sale of
natural gas in the cities of Racine,
Kenosha, Waukesha, South Mil¬
waukee, Cudahy, Watertown, Fort
Atkinson,
Oconomowoc,
White¬
engaged
and
other
50
communities
Wisconsin.
southeastern
mated
Greensboro,
N.
McDaniel
C.;
McDaniel
Lewis
R.
S.
C.;
Dickson
S.
Banking
S.
and
&
Co.,
&
Charlotte,
Lawrence,
Branch
Trust
Wilson,
Co.,
C.; E. B. Wulbern, Pierce, Car-
rison
&
Wulbern, Inc., Jackson¬
ville, Fla.
of
Esti¬
population of the territory
by the company's gas sys¬
at
Dec.
31,
1954,
about
was
which
ord,
ended
months
12
June
over
also
would
be
12V2%
The A.G.A.
revenues
will amount
billion this year,
$31,/2
nearly
figure.
1954
new
a
ahead
rec¬
of
the
Bureau of Statistics
predicts
that
by
1975,
present
rate
of
population
and
crease
present
consumption of gas,
be
serving
based
industry
our
million
40
about
on
170
billion
therms of gas.
Truly that is chal¬
lenge enough for any industry.
Indications
the
potential
nearly
I
in
in
the
year.
the
a
sale
of
gas
ranges,
gas
heating
five years from
1954
competition
our
we
making progress.
are
No later than
recog¬
August, 1955, "Elec¬
Merchandising" Magazine,
powerful spokesman for
our
a
com¬
"There is
ground
Pefaca
that
Mining Slock
Herrick
Oct.
25
&
Co., Inc. on
450,000 shares of
offered
Petaca
Mining
Corp.
common
stock, par 10 cents, to the public
at a price of $1.75 per share.
Proceeds
the
from
stock
common
new
sale
this
of
be
will
used
by the
company for completion of
facilities, for additional
equipment, for operating exjpenses
and working capital, and to repay
outstanding obligations.
mill
The
company
by and has
holder
St.
incorporated
was
its principal stock¬
as
Michael's
College
Foundation, Inc., a non-profit ed¬
ucational, religious and charitable
corporation, formed for the pur¬
pose of creating, maintaining and
administering an endowment fund
for
the
benefit
College,
of
Santa
Fe,
St.
and
New
operated
Brothers
by
Order.
principal
the
The
Mexico,
,
Christian
company's
will
be
the
business
.
,
milling of mica obtained from the
the
dumps
from
its
The
the
and
on
Petaca
mined
ore
mining
claims.
operation
contemplated will
separation
of
the
minerals, the grinding of the mica,
include
the
the
and
concentration
the
is
area
individual
is
the
fast
losing
industry
gas
national
ing
manufacturers
splendid
a
job
and
companies
Many
John
also
owns
uranium
a
50%
claims
interest
in
in
San
77
Juan
County, Utah, and intends to
plore
these
claims
and
ex¬
develop
(Special to The Financial Chronicle)
NEW
ULM, Minn.—Andrew A.
Meyer has been added
of
28
State
stern
a
This is curious because gas is the
entrenched competition, and elec¬
tricity,
only
in
recent
has
become an important challenger.
Yet the gas people, far from be¬
ing complacent, are waging the
the
years,
spirited campaign to educate
more
oublic
to
their
use
fuel
and
on
Heels
of
appliances."
Other
Fuels
Hard
Gas Industry
whole
North
&
to the staff
Mortgage
Co.,
Minnesota Street.
Two Join A. M. Kidder
we
that
sources
team
—
Richard
Clements and Paul S. Liker have
become connected with A. M. Kid¬
der &
Co., 127 North Main Street.
at
last
year's
expressed
it
either
wins
the
or
The American gas
industry now
need to decide a
major
question of policy.
is—"In what
cord
be
area
found
That question
greater ac¬
can
in
the
light
of
public policy?"
do
not
minimize
that
ences
have
tween
sectors
the
been
differ¬
aired
be¬
different
of
companies
and
the gas industry in re¬
months.
Certainly competi¬
cent
tion
between
ducers
independent pro¬
arms-length bargain¬
and
ing between producers and pipeare healthy conditions that
liners
should be continued. Nevertheless,
believe it is essential that we
I
make
a
strong effort
differences
to
mitigate
between
bind
we
up
ourselves,
wounds we
any
have shown in public and prepare
to
go forward
with
united
a
pro¬
gram.
An Appraisal of A.G.A.
Now
with
reference
Activities
to
associa¬
tion functions, I think it is
usually
rewarding when an industry or an
association
at
take
can
itself.
new
look
such
a
Sometimes
cannot
other
overlook
fuels
As
&
of
many
Smith
&
soul
and
the
energy
association.
and
best indicated by a
Washing¬
C., taxi driver who was
showing the sights of the capital
to a group of tourists. When they
D.
"It means," quipoed the driver,
seen nothin' yet!"
"You ain't
It's just that way with our pri¬
vate
enterprise
seen
—
"you
yet!" Most ex¬
perts are agreed that American
Industry has been able to cross
up the prophets of boom, bust and
doom, because of one factor: con¬
stant,
economy
nothin'
dynamic
If
improvement
the
of
industry, a
part of the economy, is to
continue to improve, it too must
have a dynamic forward look.
gas
vital
emphasized
Natural
to
the
Indepen¬
Gas Association
last
month, and I re-emphasize to this
Convention, that many of us may
have
gas
taken
too
public
much
dangerous to
for
acceptance
granted.
assume
It
that gas,
of
far-reaching
some
a
the
tions
have
These
been
recom¬
recommenda¬
thoroughly
re¬
viewed by various committees, by
delegates to the A.G.A. Executive
industry.
ton,
with
industry, the agency presented an
analysis of its findings and of¬
fered
Executive
was
interviews
cross-section
the
Perhaps what the future holds
Fuller
After months of study
personal
substantial
Conference,
gas
know,
you
Ross,
marketing and
advertising specialists, last year
made a study to evaluate the or¬
ganization and activities of the
oil, electricity, atomic
energy—are hard on the heels of
dent
E.
program
first step
faces the
—
I
(Special to The Financial Chronicle)
ORLANDO, Fla.
a
sound
whole team loses."
mendations.
While it is pleasing to hear such
praise,
fact
markets.
Bond
Such
a
fight to promote electric cooking searching is more productive if
and water heating loads.
But at done with the aid of an indepen¬
the national level, it is about time dent
authority. This year we have
we admitted that the
gas industry had the benefit of such an inde¬
is running with the ball and tak¬
pendent appraisal of A.G.A. activ¬
ing the spotlight away from us. ities.
ain't
State Bond & Mtg. Add?
an
this way: "Part of a team cannot
Win and part of a team lose. The
Staff.
It
ported
and
by
Committee
to
the
the
so
re¬
Board,
recom¬
mendations would
and
Among
such
That
and
Executive
A.G.A.
the
A.G.A.
by
of the F&S&R
that many
were
the
concluded
was
numerous
be
may
The company
be
Convention
asked what it meant.
which
such ores.
alike.
Merriam
A.G.A.
A.G.A.
in
that
urge
learn one another's
problems.
its inscription: "What Is Past Is
Prologue,"
one
of
the
tourists
minerals
neglecting
President of
building industry unity. If
components of this industry were
to try to get together on a
selling
program they would, of necessity,
bite, tantalite, monazite and other
found
be
as
not
toward
passed the Archives Building with
rare
did
might well
colum-
of
I
producers
do¬
of promoting
waging
are
if
promo¬
are
electric ranges and water heaters.
And
many
individual
electric
Michael's
educational institution founded
an
industry
to
in which the
area
Consequently, I
would
selling effort be
launched by the entire
gas indus¬
try — distributors, pipeliners and
that
tion of electricity as a fuel.
At $1J5 Per Share
Barrett
one
I
integrated
I
levels.
Even
A.G.A.
sound
through 1958 at present economic
nizes that
that
responsibility
my
re¬
a
showed
for
fuel, will automatically out¬
competition.
feel
ap¬
gas
that
survey
market
million
heaters
and
in
this
the
recall
59
water
units
marks
units
future
field,
A.G.A.
cent
sales
heating
for
pliance
will
we
gas water heaters and
gas ranges,
As
that
are
impressive
score
any
in¬
capita
per
over
with
consumers
trical
the
and
year
gas
electrical
Vance,
Co.,
Greensboro, N. C.; Logan V. Pratt,
N.
a
petition, declared:
Chairman, Vance Securities Corp.,
Lewis,
sale
nearly
central
case.
B. John¬
Harrison, Cin¬
Charles
the
will
them if feasible.
cinnati, Ohio.
N.
following summary
from a statement by
Herbert
•
Directors:
the
W.
Jackson, Raleigh, N. C.
Secretary-Treasurer: T.
basis.
Against
,
President: W. Kelvin
Gray, Ra¬
King
have
presently
at maturity, plus accrued in¬
par
ton, President
Statistics,
ac¬
to
redemption prices rang¬
ing from 104.25% to par at ma¬
turity, and at special redemption
prices receding from 101.28% to
Munici¬
pal
alter World War I, this
device was
used, and it ended in the destruc¬
tion of {he value of the
mark.
He also puts forth the
deposits outstanding, on the
hand, and prices and business
The
Carolinas, atfiliate of National
Security Traders Association, held
14, jointly,
practiced
general
at regular
of the
N. C., Oct. 13-
been
the
to
than
peak of
new
a
ing revenues of $6,820,175 and ad¬
justed net income of $688,276.
Meetings
a
monetization
from
"
For
Municipal Council
The
customers
30, 1955, the company had operat¬
favor
money
through
the Federal debt.
financ¬
386,000.
occur
to
the
previously made.
tem
additional
seem
of
treasury
served
Carolina Dealers &
business recession should and can
be prevented
by pumping an ad¬
ditional supply of
currency into
circulation.
creation
from
$470,000; to finance the cost
of continuing additions and im¬
provements to the company's util¬
ity plant, and to reimburse the
in
Broadway,
New York 4, N.
nipped
readjustment
retire
water
United States—German
recommendation in¬
first, the theory that if
which
he
"
that statement by the
being "in harmony with
well-established economic princi¬
ples and with the facts of mone¬
King
economic
Mr.
": '
bud."
The
volves
the
which
billion
66
more
million utility gas customers
1955, in addition to 7V2 million
in
ing
endorsed
can
such
commodities
Sixty-six monetary economists
experience and good standing
begin buying
in
outstanding Federal notes and
By
to
com¬
relationship between the
buy."
Board
won
the company to be used
short-term
not
steady average of prices
of the
total, the Federal Reserve Banks,
bonds.
is
money
prices is not
important to the people
with the cooperation of the United
States Treasury,
of
they produce and those which they
ap¬
proper¬
can
this
to reduce the
cost
average
fair
a
prices
available
of
add
LP-Gas customers. Total
proceeds
funds of
(2) the Board's control
a
of
nearly
"Fortunately,
a
better
The underwriter
ing will be added
necessarily result in last¬
prosperity; and (4) a steady
level
lows:
yield
to
29
Net
does not
be
to
continue
We
.
complete and cannot be made
pre¬
to
of credit
.
and
amount
amount
ventive device
sation
the
of money;
in
which
proper
changes
De¬
a
1939:
.
King,
I.
new
award of the issue at competitive
sale
on
Oct.
25.
on
a
bid
of
the
March
"Experience has shown
that
(1) prices cannot be controlled by
Willford
Dr.
of
System,
13,
a
high
sell
a
100.37%.
Governors
Financial
22
Sept.
of
Reserve
carried
"The Commercial and
Chronicle"
Board
Federal
Chronicle:
Progress for Gas Industry
reach
accrued
interest,
Thursday, October 27, 1955
.
page
therms.
than 3.30%.
Editor, Commercial and Financial
Natural Gas Co.
first mortgage bonds, 3%% series
due Oct. 15, 1980, at 101 Va% and
commerce.
.
1955—A Year of Great
Halsey, Stuart & Co. Inc., yes¬
terday (Oct. 26), offered $2,500,-
the exchange value of the dollar and make
on
the
from first
Gas 1 st Mtge. Bonds
George F. Bauer, Vice-Chairman, U. S.-German Chamber of
Commerce, says Dr. King's policy would have a highly dis-
j
Continued
Halsey, Stuart Offers
.
help strengthen
the
industry.
gas
recommendations
following:
the
headquarters
re-evaluate
all
association
staff
of
the
of
conferences
and
meetings. The present Execu¬
Committee urged
that this
review
and
analysis of A.G.A.'s
tive
committee structure and activities
be
expedited
in
Activities
under
a
the
PAR
Plan
long-term impor¬
Therefore, the related
tivities
be
im¬
an
1956.
have assumed
tance.
provide
to
organizational pattern for
proved
A.G.A.
of
A.G.A.
integrated
sections
more
closely
PAR where economy of time
expense
or
better
results
ac¬
should
into
and
can
be
achieved.
The
Executive
Committee
re¬
of
cently endorsed plans for holding
a
series
of
regional
executive
meetings in 1956 where the gas
is
industry development program
or
and the action demonstration
city
Volume 182
Number 5476
together
experiences,
and
will
with
Association
other
v.
The Commercial and Financial
.
velop
PAR
be
Subscriptions
presented to utility top
in an effort to .en-'
further active participa¬
in industry-building activi¬
Plan have
executives,
PAR
gender
000 for gas
tion
ties.
t.
recommended
It
ings
held
be
similar
for
later
meet¬
company
program
Some
sales and advertising managers in
Order to uncover ways and means
Of
aids
effective for
more
Strong sentiment
expressed
was
Association
should
be
to the
in
the
story
and modern gas appliances
public.
About $1,000,000 will be devoted
research this year, with more
than
to
and substitute gases.
gas
utilization and gas operations.
An
more
*
50
projects
devoted
000
than $1
million of additional
advertising
We
such
by
gas
very
interesting
can
a
read¬
with
a
Without
Carl Wolf
throughout
that year,
they have
the
challenges
is
air
of A.G.A.
additive to
the
Bureau
some
have been
processes
oil that
In
that
of
in
this field
being done by
Mines,
Consolidated
of the pipeline
by
Pitts¬
Coal,
and
companies.
closing, I wish to offer
none-the-less
of
ciation
at
my
met
extensive review of the
the
the
activities
same
time
Association's
have
of real caliber with ample
opportunity
for local
emphasis
gram
An
tie-in.
and
the
discuss
a
been
initial
held
has
and
Television
A.G.A.
has
Committee
appointed
to
meetings
possibilities
such
of
and progress was re¬
program,
board
ported to "the executive
meeting yesterday.
*
Committee
Executive
The
rec¬
ommended that the present public
information
and
relations
public
activities of the association be con¬
and
the PAR Plan
within
tinued
urged broader company participa¬
tion and financial support.
Con¬
Executive
year's
At, this
ference, the question of what kind
of an association the gas industry
needs
considered.
was
F. Oates, Jr.,
Mr. James
of The
man
Chair¬
Peoples Gas Light and
Coke Co., and a director of this
Association, presented a statement
of
policy so clearly that I would
to quote parts of it, as fol¬
like
lows:
should
Association
"The
Democratically controlled
have careful hear¬
will
all views
ing and fair appraisal
.
.
determination
"The
should
in
be
be
that
so
-
.
of
of
hands
the
.
policy
the
of the
industry. They and only they can
command the continuing loyalty
of the membership. Such support
volunteer
representatives
follow
will
their
from
unre¬
warded
services, their practical
experience and their democratic
limited
for
selection
The
terms.
Board, which should manage, will
have the help of committees in
the determination of
policy.
determined,
implemented and pur¬
by the professional staff —
"Policy,
should
sued
once
be
has the time,
which
training and
facility to do the jobs which have
formulated
been
to
let's go,
the in¬
serve
America...
terests of all.
"We, the volunteer laymen . . .
argue out our differences
the
should
hammer
and
spadework is done!
in
conclusions
out
the forums of the committees and
the
-
boards.
At
existence
"The
Associa¬
the
of
tion cannot depend upon the con¬
one
end, hundreds of miles distant, the
Southwest. At the other,
gas-producing
fuel-hungry homes and
them, the world's
tinuing allegiance of overwhelm¬
industries in the East. In between, linking
ing industry support for one
leader, however clever and wise
longest pipeline, Tennessee Gas. "
and good
Transporting natural gas, the world's finest fuel. More
he
be.
may
Every
asso¬
ciation president and board mem¬
ber
however,
is,
fact, they
expendable.
limited
only for
serve
a
In
times.
Institution
"The
strong
a
at
the
by
run
with the iron fist has
limited life expectancy—
man
very
tion
short,
that
we
need
do
can
organiza¬
an
on
national
a
level those things in which we all
have
a
cannot
as
well,
at
or
or
reaching
want
out
to
an
the
local
to
or
level
replace the principles
promote
approach
fielfl
The
of
local
stronger
all,
other¬
methods of local management
to
important still, expanding steadily to meet
Pacing the industry's progress, Tennessee
has laid the
And is
indispensable in
some
25,000 industrial operations.
NATURAL GAS RESERVES INCREASING
underground storage.
Gas
groundwork for a bright fuel future.
a
fixed
to
operations
industrial
companies
encouraged
will
they
inspired
more
and
America.... we've got the gas.
in
TENNESSEE
or
.
pattern
our
the
Let's go,
organization
through regional offices
or
Long the preferred fuel for cooking, natural gas-plenti¬
and dependable—is now heating 14 million homes.
ful
the
ever-mounting needs of the areas it serves. Pipeline capacity,
increased eight fold in ten years, still growing. Backed up
More
acting
we do
...
need
wise
than
half cubic feet daily!
great interest—things that
be done
by individual companies
separately and alone
not
a
by increasing reserves and
least in that form.
"In
billion and
.
«
.
of
TRANSMISSION.
any
be
to
the
HOUSTON,
TEXAS
be
de¬
■
COMPANY
activity.
can
GAS
AMERICA'S
LEADING
TRANSPORTER
OF
NATURAL GAS
Superior fuel for decades to come! Each year far more
natural gas is
discovered than is used.
and
advanced
achievements.
evening television pro¬
an
Asso¬
with vigor,
should attempt to put to¬
we
and
Association
problem unusual indeed.
the personal direction of
Managing Director
work
burgh
Several
or
has faced the staff
employees of the
the
The
year.
the conditioning
welcome
from coal
This year
About $300,-
is being devoted to
year
ily be substituted for natural gas.
$300,000 before the year-end with
:
per
perfecting methods of producing
original appropriation of $200,000
for air conditioning research
probably
will
be
increased
to
work with appliance a like amount earmarked for this
has brought about important
research
work
next
manufacturers.
agreed
are
competent
Gas production occupies
a.
of " the ' Association,
little > or
prominent position in the PAR re¬
search
program .with .extensive nothing could have been accom¬
work being done in peak shaving plished.
"
have been
we
bringing
to
and ad¬
activities, and this
will be augmented greatly
national
groups
.
Gas Production
i
manufacturers
meter.
gether
of gas
under the PAR Plan.
$1,230,000 will be spent
cooperative
the
the
and hard-working staff
support of my fellow officers,
membership of A.G.A. and
thing definite to show by 1956.
gas company and manufac¬
successful
panies and appliance manufactur¬
ers.
It is estimated that A.G.A.'s
feasible way to con¬
vince all segments of the industry
that their growth and economic
welfare are inevitably tied in with
the sale of gas at the consumer's
Competent
our
turer members that
through advertising "and promo¬
tional expenditures of utility com¬
used in every
that
of
vertising
*
the
leadership of A1 Rockwell. It
through the united support
is only
utilities and more than
this year in promotional
more
local company use.
that
the
exceeded $2,300,-
.
amount
making these sales
adaptable and
w
to t he
1955
$250,000 additional for pipeline
research,
a
record
attainment.
Many, companies also subscribed
to
the
new
public information
.■
.
for
23
to all who have
advertising support being
con¬ under review by the industry as a sincere thanks
tributed by the GAMA group of whole and subjected to intensive helped me so greatly during the
equipment manufacturers h n d e r research. We hope to have some¬ past .year. Without the help and
their own patterns to deal
own problems."
with their
activities,
(1771)
Chronicle
^
24
(1772)
The Commercial and Financial Chronicle
Continued
from
page
3
1956, dollar outlays
trend
mortgage credit.
have
been
expected
the leading New York
City-
borne in
earnings figures for both the third quarter
through September 30. And, it should be
mind, without very much benefit from the higher interest
months
12
rates for these
not
were
the
at
31/\ %
level prior to Aug. 2, and
ing.
is the best of the
year
year's earnings are in they will exceed
increase by several additional
percentage points.
The quarter and 12 months'
figures
•
were as
15)54
1!»55
1954
1955
$1.11
$4.20
$4.51
Bank of New York
3.79
4.69
16.34
17.88
Chase Manhattan
0.79
0.68
3.28
3.91
Trust
Chemical Corn Exchange
Empire Trust
3.00
First National City
0.96
0.77
—
mained
3.23
4.15
0.95
1.31
4.37
0.50
3.43
3.79
1.77
2.00
sustain
1.56
5.82
6.32
chases
J. P. Morgan & Co
3.93
5.04
16.11
17.77
New York Trust
1.19
1.22
4.54
4.81
20.05
As the four mergers took
place within the 12 months, pro
forma data have been used for the earlier
periods to give effect,
to the mergers:
Bankers-Public; Chemical-Corn
Exchange; ChaseManhattan; National City-First National. Also adjustments have
been made to give effect to the 20% stock dividend of
J. P. Mor¬
gan & Co.: that of 11-1/9% of Hanover
Bank; and for the two-forsplits of Bank of New York, Hanover Bank and New York
Trust.
one
Another tabulation that
ought to be of interest to bank stock
holders is that which gives for
Sept. 30, 1954 and 1955, the amount
assets (that is, working
assets) per dollar of market
price for the stocks on the same dates:
of invested
Invested Assets Per Dollar of Market Price
1954
Bankers
Trust
September 30
1955
1954
$9.24 $7.78
Bank of New York
10.00
rhpm,>^iaphrfrttaFv"
Corn Ex.
in
Chemical
8.97
Irving Trust
11 oil
9.41
Empire Trust
9.72
6.30
ures
as
adjustments have
same
were
„
7.20
9.92
n.„
„cn
8.57
6.52
7.70
6.19
4.90
4.18
to be made to arrive at these
fig¬
made in the first tabulation.
Two observations should be made
in
the
invested
assets
averaged
over
in
the
by
the
approximately
same
group,
price ratio has declined
15V2%.
period increased
However,
negligible
a
of
so-called
invested
bank
1%
it becomes obvious that the 15%%
operating earnings
assets, which
loans, realty and mortgages.
business, which involves
relatively small
earnings.
its
on
no
amounts
All
consist
of
mainly
these
invested
some
any
but
case
does
Thus, United States Trust, which derives
of
the
stock.
Plainly their activities
some
only
59%
directed
were
into
Gross
New York banks from about 15%- to
59%, and this factor should
where the invested assets:
price ratio appears
to be low relative to the
group.
cases
TRUST COMPANY
NATIONAL
of
Bankers
Kenya
to
the
Government in
Colony and
Office:
26
Request
Laird, Bissell & Meeds
Members New York Stock
Members American Stock
120
BROADWAY.
Telephone:
Bell
Exchange
Exchange
NEW YORK 5, N. Y.
BArclay 7-3500
Teletype—NY
1-1248-49
(L. A. Gibbs, Manager
Trading Dept.)
Soe.cialists in Bank Stocks
West
Uganda
Bishopsgate,
London, E. C.
on
BANK
INDIA, LIMITED
Head
Bulletin
Expectancy of Recoveries
additional encourage¬
(London) Brancht
13, St. James's Square, S. W. 1.
Branches in India,
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and SomaliProtectorate.
Authorized Capital
£4,562,500
Paid-Up
duration of past recoveries. In
cent decades, cyclical business
Capital
Fund
£3,104,687
The Bank conducts every
description of
banking and exchange business.
Trusteeships and Executorships
also
to
support
undertaken
accumulation, and the
during 1955.
It
estimated
is
continued
that
business
is
currently building inventories at
a slightly
higher rate than in the
first
half
of
year, the
the retail
mobiles;
have
1953.
Earlier
in
the
buildup was mainly at
level, largely in auto¬
more
been
recently, increases
reported
turing
and
rise
in
in
manufac¬
trade,
of
the
although little
manufacturing in¬
ventories is in finished goods.
Measured by past standards, in¬
expanding
output, large backlogs of orders
rising sales suggest that busi¬
Record
levels
Construction
that
the
present
yet
as
in
m
does
of
building
historical
Historical
construction provided strong sup¬
up-
port to the economy in 1955, and
appear
oersoecperspec-
The
Prospective
course
of
the
Demands
business up-
turn to date,
therefore, presents a
fairly heartening picture. The re-
re^coiyet"sb«a?hyedbTe"v
KtSM apTea^renloy
Pt
"
h
£
b
taken
to restrain
steps "ave peen taken to restrain
bulldinS activity. Down payments
Government-!
Qn
n s u r e
d
although
indications
and
of
cumulations
Plant
—After
centage
points,
and
per¬
maturities
babeenA ,shortaned f™m 30 to
^taScurb'thepractice^fmort-
warehousing"
gage
u
by commercial
£
foresee
•
'tjs necessary
ii^ order sectors of the
"\am to
the
assess
"e?°£ssupport to business
tiv
ty
ac-
the perod ahead.
in
consumer
helped cushion the
turn
to
and
the
expenditures
recovery.
While
has been directed
the strength of the automobile
market,
consumer buying of other
goods has also increased. Outlays
for home
furnishings and equip-
have
expanded
with
the
high level of home building, and
even
expenditures
on
clothing,
which in recent years have tended
to lag behind the rise in
personal
income, have recently shown increased
strength.
Indications
are
consumer
spending will
continue strong in
period ahead. Employment is
levels, payrolls are being
bolstered
by overtime, and
at record
round
spreading
omy.
In
come
in
mented
income
of
nea*
much
future
mQre
while
sa'nguine
their
expectations.
In
any
event, the policy of restraint presumably was decided upon
in
costs
and
the
investment
mands;
level
would
cient
funds
to
de-
housing starts, therefore,
not
reason
moderate
necessarily .be
suffi-
to relax the mild and
restraints
far.
Obviously,
should drop to
than
relative
modest reduction in the
a
of
general shortage of
if
greater
a
consistent
employed so
housing starts
with
extent
economic
stability,
policy
decisions
likely to be reversed rapidly,
are
wage
raises
is
throughout the econaddition, disposable inlikely to be aug-
1956 is
by reductions in individual
taxes, which
now
appear
ahead, substanagainst sharp cutbacks
in
housing starts,
on
a
seasonally adjusted basis, is provided by the practice of forward
commitments for financing; at the
tial
assurance
same
time,
make
for
restraint
cate
delays
takes
appraisal
However,
tion
these
in
even
the
commitments
before
hold
of
with
number
and
the
outlook,
some
of
credit
complireduc-
starts
in
cannot
be
dismissed
and
Equipment Programs
ment
a
began
to
advance
in
the
second quarter of 1955 and is now
in
a
rising trend that mav be
expected to carry well into 1956 at
least. Recent surveys indicate im¬
pressive
upward
revisions
in
spending plans, with most major
industries participating in the ad¬
This evidence is confirmed
vance.
by sharply higher orders for new
machinery and equipment and by
contracts
industrial
for
building.
The upturn in business spending is
one of the most important sources
confidence
in
the
in recent
Government
outlook
to
months.
Expenditures
—
In
contrast with 1954, when Govern¬
ment
eral
outlays were declining, Fed¬
spending has held virtually
level
in
Defense
1955.
spending
has stabilized; reductions in mili¬
tary
being
foreign
and
manpower
offset
by
aid
higher
pay,
and the
training
program.
Nondefense
expenditures
have
shown a rising tendency, reflect¬
ing mainly larger outlays for farm
price supports.
new
procurement
reserve
Current
prospects
for Fed¬
are
eral
spending
to
remain
near
present levels or perhaps even to
increase
ahead.
modestly in the period
Major cutbacks in defense
expenditures
concrete
await
must
evidence
of
a
more
real
im¬
provement in international affairs,
while
powerful pressures
are
op¬
erating in the direction of greater
outlays
for price
supports and
public works. State and local gov¬
ernment
are
expenditures, of course,
certain
continue their
to
sus¬
tained upward course.
Laggards
por the months
that
the
another
in the
are
down-, view of the tight supply of buildimportantly ing materials, rising construction
much attention
to
|.e,axed
1953-54
contributed
recent
cre(j£
jn
Consumer Spending-—Continued
high
a drasic decline in housing
startg -n 195g if present
policies an(j lending terms are not
others
in¬
two-year decline, busi¬
spending on plant and equip¬
ness
of
two
no
the
completely.
emerge
modest
are
of
getting out of
time, the possibility
excessive and speculative ac¬
increased by
a
there
this
expanded
E™ J £
ef¬
coming
situation
hand at
are
^
their
in
Korean War boom in 1950. Conse¬
-guaranteed mortgages have been
Appraising
stocks
ventory
and
re¬
economic
not
continue
—
,
advance
to
definite
and
the outlook is for new high marks
to be set in 1956. For nonresidenrun
as long as
18 to 24 months, tial building and construction acFurthermore, after the upturn 'lvlty> sustained strength this year
tapered
off,
business
has
fre- heralds further gams for the year
quently moved on a plateau for
head*, commercial construction
several
months
before
turning has be,en In an "pward, trend £or
downward, and upon occasion the ??veral
industrial construcplateau
was
succeeded
by
re- f10n, 18 "sing sharply
and connewed expansion instead of a de- tracts are high, while construction
cline.
Such comparisons are obschools, highways and other
viously more useful as incentives publ!c Precis is maintaining the
to further analysis rather than as ste**y ScoMh of the postwar era
dependable guides to the future,
bl: 0!
*®sidential
but it nonetheless is
reassuring to budd!ng's mor® dlffle"it to ap"
note
will
build
nessmen
forts
quently,
turns have generally persisted for
more
than 12 months and have
£2,851,562
Reserve
weakness
any
Building
regard to business con¬
ditions may be gleaned from the
2.
End
land
and
this cautious view.
ment with
ment
NMUFACTURERS
shown
„
of
among the
weight in
changes
—Finally,
produce
other channels than those
requiring the investing of assets.
income derived from trust and
similar activities varies
have
'
trust
operating earnings from fees, commissions, etc. (trust
activities),
Sept. 30 had only $4.18 of invested assets per dollar of
market
value
a
investments,
do
(or in
assets),
derived from
of
banks
invested assets
of
are
to
has
grounds for anticipating a lower by scarcities in some basic ma¬
automobile year in 1956. Admit- terials. In fact, the incentive to
tedly, however, automobile sales add to inventories is probably
in recent months have not as yet greater than at any time since the
ing.
total
as
1/10
decline may be accounted for
only by reason of the better market
for these bank shares in the 12 months.
Secondly, not all of
Thus
the
business
upturn
has
gained in strength in the course
year and is now supported
by record levels of private spend-
Life
"face-lifting"
erate
and
expand
their purespecially of durable goods,
long-lived
long uvea
average the amount of invested assets:
months
a
this schedule. First, that
on
on
12
8.59
0
United States Tr.__
5.87
The
**
™
J- P* Morgan & Co.
New York Trust—
8.54
Guaranty Trust—
T
8.78
9.87
$8.47
Manufacturers Tr._ 11.48
10.58
First National City
1955
Hanover Bank ____$10.11
dation
trend
trade-in
generous
car,
allowances by dealers, and
of the
24.42
September 30
of
—
with the competitive relaxation in months, the more so as a more
lending terms not likely to per- liberal inventory policy is en¬
sis* f°r another year, there are couraged by advancing prices and
0.52
4.59
makes
Inventories
Toward
the end of last
year, business poli¬
cies shifted from
inventory liqui¬
and
1.44
4.00
building in
likely that a
it
*n lending terms. With
1956
models likely to bring only mod-
0.45
Trust
so-
demonstrated
Irving Trust
States
is
ventories still appear low in rela¬
tion to sales.
However,
Manufacturers Trust
United
neither
continuing
willingness to spend liberally and
also to go into debt in order to
4.80
0.62
the
Housing
starts,
which
spurted
sharply in the closing
months of 1954, have since eased
somewhat,
but
other
types
of
Some uncertainty surrounds the
building and construction have outlook for automobile sales at
upward,
1956;
rapid
ment, which have reached new expansion in instalment credit,
peaks.
Consumers meanwhile facilitated in part by a relaxation
14.05
3.98
Guaranty Trust
throughout
later, business also increased its
expenditures on plant and equip-
3.39
12.70
1.07
Hanover
Bank
strong
tion. For these reasons it is doubt¬
ful that the outlook is for a
drastic
decline in residential
have
0.90
3.42
'
disposable income by about
$2 A billion a year. If this step
? coupled with a modest decrease
m rates or a blanket Percentage
reduction m the tax bill, the
rUn ai?
3S
^ bllll0n annually,
models
that total this time. While some observers
private construction outlays have believe that passenger car sales
reached
record
proportions.
In in 1956 could match the 7.6 miladdition, after lightening inven- lion anticipated this year, it should
tories in 1954, business early this be recalled that record sales in
1955 have reflected a combination
year shifted its policies and en¬
deavored
to
rebuild
its
stocks; of major model changes for most
12 Mos. to Sept. 30
$1.03
Bankers
whetted
automobile
continued
follows:
Third Quarter
by the automobile
year.
this 10%
Earnings
more
approximately balanced budget in modest decline in the level of
cufrent fiscal year. An m- housing starts from recent levels
"'^se in personal exemptions by will usher in a general business
vvb;fcb aPPears as the nam¬ downturn.
be granted, would
Business
Major styling changes in the
1955
four, it is highly probable that
full
more
the public's appetite, and the market for passenger cars has re-
earnings for the 13 leading banks in the
city was from $183,160,000 for the 12 months ended Sept, 30, 1954,
to $201,480,000 for the 12 months
just closed. This amounted to
10%. And, as for a number of the banks, the last quarter of the
the
likely in view of the
prospect that election-year considerations may be fortified by an
industry and by residential build-
The increase in dollar
calendar
assumed
were
hence affected only the very short-term loans on the banks' books.
But the banks did get the benefit of the
higher rates on renewals
in the three months that have
intervened, and on new loans.
when
all the
re-
The key roles in the early phase
of the business recovery in 1954
banks issued excellent
and for the
Most of the
covery, however, appears due to
private initiative and enterprise,
This Week—Bank Stocks
to
toward
-expensive
units and by rising expenditures
on
home repair and moderniza¬
By ARTHUR B. WALLACE:
was
residential
on
building will be supported by the.
Bank and Insurance Stocks
As
Thursday, October 27, 1955
.
in
the
Recovery
—
Against this record of current and
prospective strength in most
major
sectors
of
the
economy
be
must
industries
behind
turn.
and
set
the
and
fact
areas
that
are
some
lagging
the general business up¬
Agriculture in particular,
especially
the
small
farmer,
has certainly not done well; while
agricultural
weak,
prices
materials
prices
have
been
of equipment and
purchased
by
farmers
yolume 182
Number 5476
j
The Commercial and Financial
Chronicle
.,.
have advanced, and net income
of
farmers has declined.
f However,
it does not-seem likely
that conditions in the
lagging in¬
dustries
or
sufficient
communities
gravity
in
of
are
the
aggre¬
gate to have
a
pronouncedly ad¬
effect upon the general level
of business
activity. Most of the
industries in question are troubled
verse
more
by their inability to share in
prosperity rather than
the present
by
serious
Even
economic
the
farmers,
adversities
still
not
asset
of
in
difficulties.
despite
recent
depression.
a
holdings
of
their
years,
are
Liquid
farmers,
as
a
group, are large and purchases of
farm equipment have been reason¬
ably well maintained in 1955. In
all, while the absence of a fully
balanced recovery
admittedly
poses
political
some
problems,
it
have created
that
not
drag
a
would
tenance of
does
and
social
to
seem
upon recovery
preclude
the
main¬
high level of business
activity in the period ahead.
a
Indebtedness and Credit Policy
A
review
of
prospective
de¬
mands thus
suggests that business
activity will continue to be sup¬
ported by substantial and possibly
increasing demands during the
year ahead. However, the exist¬
ence
of large demands does not
by itself necessarily rule out the
possibility of the economy be¬
coming vulnerable
if
areas
of
overextension
should
or
overexpansion
develop.
Specifically,
easing of upward
to
an
Mortgage debt
•:
than
pressures
economic downturn.
here, too, record
some
and
have
resulted
tightening
of terms.
mortgage debt
amount
of
standing
in
The
on
risen
out¬
1-4 family houses has
more than
15% within
by
the
year.
However, while it is
unlikely that such rapid growth
be
sustained over the longthere is no evidence to sug¬
gest that mortgage debt is likely
can
run,
to become
our
to
fact,
larger mortgage
indebtedness, in relation to their
income, than in past periods of
rapidly rising home mortgages.
carry
Credit
a
Policy—Turning to the
of the coin, the argu¬
other
side
ment
has
been
advanced
that
a
threat to economic
stability might
from the prevailing Fed¬
eral Reserve policy of credit re¬
emerge
straint.
been
These
made
been
fairly
have
fact
that
far
so
moderate,
gradual
policy and
Even
the
measures
the
lending
contentions
despite
restrictive
have
involving
of general credit
use
tightening
some
terms
for
real
of
estate.
though the American
the
been
accompanied
in
bank
by
record
a
loans,
instalment
credit
and
mortgage credit, we
properly ask whether eco¬
stability may be jeopard¬
ized by developments in the credit
situation, either through excesses
may
nomic
in
credit
expansion
quence of a credit
to
restrain
such
in
or
conse¬
policy designed
Credit Expansion and Private
Indebtedness—To date, there is no
evidence of widespread specula¬
tion financed by short-term credit
—a development which in the
past
has so frequently been a source
of economic trouble. It
would
as¬
suredly be surprising if inventory
speculation were entirely absent
in the current
environment, but,
as
already noted, there are no
signs
that
such
speculation
is
overt
extensive.
or
Nor
is
credit
contributing to speculation in the
stock market; in factt despite the
length and strength of the bull
market, speculation on small mar¬
gins appears to be far less wide¬
spread than in comparable periods
of
the
past;
stock
inflationary tendencies,
heritage of the Great Depres¬
sion—fear
of
unemployment and
deflation—is still with us, and this
complicates the task of credit pol¬
icy in the present period.
Obviously, the goal of the credit
authorities is not to turn business
downward but to prevent the de¬
velopment of
economic
an
which
in
been
boom
followed
the
past has invariably
by
troublesome
corrections and adjustments.
excesses.
market credit
has remained relatively modest in
danger of such
The
boom
develop¬
ing is immeasurably increased if
credit
remains
easily available
while productive facilities are ap¬
proaching capacity utilization. On
a
the other hand, if restraint is ap¬
plied early enough and credit pol¬
icy receives the support of bank¬
business and the general pub¬
ers,
lic,
chances
the
of
mitigating
greatly
enhanced.
The business adjust¬
ment of 1953-54, for example, re¬
business
flected
fluctuations
the
end
are
of
the
Korean
War, cutbacks in defense spend¬
ing, and shift from business in¬
ventory accumulation to liquida¬
tion;
a
decline
from
the
1953
boom levels would
developed
policy.
of
By restraining
rather
than
to
speculative trading. By and
large, therefore, the economy to¬
day seems less vulnerable than
in the past to a
from
the
of
short-term
credit for speculative activities.
<
Instalment credit,
hand,
20%
it
on the other
increased by almost
12 months, and
has
the past
in
is
obvious
that
this
rate
of
growth cannot be maintained for
indefinite period. Furthermore,
increase has been attained
an
of
lending standards, and this like¬
wise
be
cannot
definitely.
cannot
continued
While
be
this
in¬
situation
contemplated
with
equanimity, present prospects
are
that the competitive liberalization
of terms will come to an
end, and
that
the
rate
gradually
if
these
the
level
of
Obviously,
expectations materialize,
economy in
prived
the
will
repayments
credit extensions.
new
the
of
approach
of
rapid
this
year.
the
rise
In
1956 may be de¬
boost
of
provided
consumer
view
of
the
by
debt
many
other
supporting factors at work,
however, the result on balance is
more
likely to contribute to
some
little
At
see.
can
and
also have had
may
bering
effect
business
rection
have
may
some
excessive
upon
optimism; if
may
so, the
helped to
have
so¬
cor¬
best,
strain exuberance in such matters
inventory
as
policies,
where
moderation would be bene¬
some
It
doubtful
preciable
that the
has
seems
decline
any
had
ap¬
effect
upon
the plant
business, nor is it
likely to deter equity financing
on
the part of established com¬
panies.
of
program
Although many years
have
elapsed since the stock market
last had
major effect upon the
business, sharp fluctua¬
tions in stock prices have occa¬
sionally contributed to economic
instability and could well do so
again in the current environment.
a
of
course
Definite
tered
signs
that
outright
an
could well have
sequences
and
would
bear
more
en¬
market
serious
business
upon
business
have
we
con¬
plans
sentiment,
then. be
a
progress toward
and
negative factor
in the economic outlook.
laying the ground
peaceful coexistence is likely
uncertain, marked
by fluctuations between hope and
frustration, and this will have its
effects upon business plans and
government policies.
re¬
Questions
economic
abound
sphere.
also
in
In most
A
show
in
the
straint
in
through credit policy
instances
some
fiscal
policy
date,
there
resort
to
other
and
would
is
little
trade
the
Political
Uncertainties
ing further into 1956, the possibil¬
ity needs to be considered that
political developments also could
and
of
import
quotas
restrictions that
adversely affect the market
contribute to business
uncertainty.
There is little doubt that business
however, the situation is
fraught with considerable uncer¬
tainty and the consequences for
and
of
war
the
dangers of excesses are becoming
more
tions
and
Conclusions
business
high level of private investment
activity and to orderly economic
growth than in previous periods
a
recent
our
fidence
back
could
if
coming
the
of
history.
well
This
suffer
a
con¬
set¬
sectors of
rate
achieve
political trends in the
months
should
indicate
greater prospect of a change
Administration in next year's
elections.
This is not to say that
developments would neces¬
sarily have significant repercus¬
such
sions upon business
activity in the
point' up
the prospect of politics being of
aggregate,
but
it
does
greater potential influence upon
business conditions in 1956 than
has
been
the
case
for
has
been
years.
rise
since
$385 billion
the
first
or
quarter
likely to be
some
to
exceed
expected in
the
past
ployment
a
of 1956, it is
5% ahead of the
is
now
tain
12
months.
reduced
With
to
3%
the
very
American
Natural
A
NEW
JERSEY
While
the
economic
outlook
CONSOLIDATED
GAS
COMPANY
MICHIGAN WISCONSIN PIPE LINE COMPANY
been
Shaiman
added
&
tional Bank
to
the
Company,
Building.
Gas
Company
CORPORATION
•
•
make
predictions of the future
MILWAUKEE
GAS
LIGHT
COMPANY.
AMERICAN LOUISIANA PIPE LINE CO.
is
a
hazardous
undertaking.
In par¬
ticular, fluctuations in the stock
market, in the political situation
home
at
in
and
ment
effects
policies,
fidence
and
upon
upon
and
affairs
un¬
govern¬
business
public
the
upon
world
significant but
con¬
psychology,
course
nJ
of economic
activity.
The
Stock
clearly in
markets
of
history.
vanced
Market —We
one
of
the
Stock
better
prices
than
1949 and have risen
past
reflect
business
have
175%
75%
two
most,
years.
Much,
of this great rise
solid
investment
based upon the
are
bull
great
American
ad¬
since
over
the
perhaps
seems
to
demands
high levels of
cor¬
porate earnings and the continued
growth of the American econ¬
omy.
Nonetheless,
a
sustained
rapid
AN INTEGRATED NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEM
SERVING MORE THAN A MILLION CUSTOMERS IN MICHIGAN AND WISCONSIN
AFTER
MORE
THAN
HALF
A
CENTURY
OF
South
DENVER, Colo.—Alan K. Moore
has
in
unem¬
of
1714
(Special to The Financial Chronicle)
the rate of economic
prevailed
Inc.,
Shaiman Adds
1955.
has
affiliated with Intermoun¬
Securities,
Broadway.
tapering off is to be
that
with
Corpora¬
Management
(Special to The Financial Chronicle)
reasonably good for the total
of goods and services in
However,
William B.
—
affiliated
DENVER/ Colo.—Fred W. Pool
output
1956
Colo.
now
With Intermountain Sec.
the
comparable 1955 period. Prospects
are
progress.
tion, 445 Grant Street.
this year; in
more
is
Hamilton
middle of 1954, is expected to total
expansion
several
Russell
Product, which
the
on
to
orderly
(Special to The Financial Chronicle)
DENVER,
v
strength.
National
economic
of
and
and
balanced
a
requireci-
excesses
With Hamilton Managem't
building
and construction,
business plant
and equipment expenditures, con¬
sumer
spending and government
outlays are all likely to display
Gross
the restraint
such
avert
nonresidential
continued
officials
Government
exercise
to
but
bankers
to
to
ing,
goal of
and
common
business,
investors,
our economy. Some un¬
has
been
unusually certainty is encountered in
ap¬
high in recent years, presumably
praising the outlook for automo¬
in large part because of the ex¬
bile production and home build¬
pectation that government pol¬
icies would be m^re conducive to
and
and the credit authorities must be
the
leads
The
acute.
condi¬
conclusion that considerable vigor
is still to be found in the
major
prospects
immediate
again
now
our
economy
could conceivably
become more significant.
Summary
in¬
econ¬
an
postwar years
after the outbreak of
in Korea. Nevertheless, we
seem
to be at that stage of
business
upturn where the
and
confidence
of
the
in
again,
This review
the
omy
for United States goods and hence
United States business.
Here
Look¬
For
scene.
part, these are
where
re¬
labor
—
business
operating at or near capacity,,
prices of industrial raw
materials are
being boosted by
scarcities and where wage rates
are
being raised more rapidly
than productivity. Barring a war
scare or the like, the current rise
in prices is not likely to be as
inflationary as the one under way
are
evidence
most
evidence of in¬
at work in
pressures
current
evitable concomitants of
also
through
taxation.
To
and
tighter
There is ample
coun¬
the
in
The possibility
an easing in output some time
1956 is a very real one.
of
De¬
try, but in general, attempts
being made to achieve some
im¬
of the year.
their
from country to
fluctuations
some
course
flationary
vary
itir
this
ponderables in the outlook, how¬
ever,
the economy could ;.well
the
coun¬
payments.
decline
economic
sharp
capital and by rising prices;
several
important countries are
experiencing
difficulties
with
of
economy*
1956 does not appear likely at
In view of the many
ment
balances
the
as
time.
tries, industrial expansion is be¬
ing
accompanied
by
growing
shortages of labor and of invest¬
tails
in
left
production in some
cases may become limited by tight
supplies of basic materials. Con¬
sequently, the increase in business
activity in the coming months is
likely to become more modest.
to be slow and
It
luxury spending
some
slack
especially
generally favorable, it would be
unwise to ignore the important
imponderables which at all times
with
relaxation
we
sult for the economy.
dampened
Further Imponderables
predictable
a
be
as
for
MICHIGAN
Some
could all have
help of
probably
ahead
in
and
tions.
this
the
continues; it will
with us for as far
Communist
force,
however,
policy
collapse resulting
abuse
the
the
World
market, therefore, may
have had a generally salutary re¬
likely helped hold the subsequent
downturn to very modest propor¬
construction
of
The recent correction
between
Free
labor
in many important
spurt
real estate credit is related
new
gle
the
slightly
civilian
of
credit
the
size and has tapered off in recent
months.
Also, the expansion in
to
business
relaxation
some
assuredly have
regardless
in the first half of 1953,
a
restrictive credit
mainly
should
brought
econ¬
at least for the time being,
omy,
and output
industries
international tensions, the strug-* proaching capacity levels, there »
has
stock
market
In
in
view of the longer payout
periods
and lower interest costs
prevalent
today, individuals are probably
able
the
ficial.
1956.
ability of the economy and to an
ensuing business decline.
Since
rise
so
vulnerable
unsettling factor in
be facing problems of scarci¬
has
them
in
an
economy
and
advance
ing valued
outlook.
practices
World Affairs—While this year
prices
equities be¬
liberally as to make
though recent developments have
helped to eliminate some extreme
ties
business
stock
common
expansion has been promoted by
liberalization of lending terms, al¬
may
current
in
conditions prompt even a
less favorable reappraisal
overextension of credit at times
has
contributed to
the
vulner¬
the
advance
raises the prospect of
resembles instal¬
ment debt in that
fS
(1773)
SUCCESSFUL
OPERATION.
staff
First
of
Na¬
26
The Commercial and Financial Chronicle
(1774)
JOHN
Group to Meet
Securities Salesman's Corner
WASHINGTON,
"World's Biggest
called
foregoing caption is the title of the article which appeared
page of the "Chronicle" of Oct. 20, the subject matter
of which, naturally, dealt with securities traded in the Over-theCounter Market. Like its predecessors, the purpose of the article
was to point up the large number of blue chip and potential blue
chip securities which are available only in the counter market.
This fact was well documented in the tabulations which were part
on
boom, aside from the contributing fact of FHA
dential housing
the plethora of institutional funds seeking
and the accompanying easy money conditions.
and VA loans, was
investment
be "too little
Says recent steps taken to curb the boom may
of the
and too late."
r:
the
article,
What factors
responsible for
are
resulted in disturbing
National Hous¬
struction
It
the past year or
so?
generally felt that the
over
was
the
passage of
have
creases.
Liberal credit
year
such
initial
the
an
?U1S1^
labor
stimulus
since
the
1 i b
strained
Act
-
competed actively for the remain-
and
years
by
ing choice building sites.
A record era of prosperity has
asing
ecr e
payment
requirements
both
The gross
John R. White
housing.
however,
conclusion
that it
tends to disprove this
although it is obvious
was
contributing factor.
a
in
boom
actually
housing
preceded the passage of the legis¬
lation.
May and June of
1954 witnessed housing construc¬
April,
tion with an aggregate excess of
6,321 starts over the corresponding
period in 1953. Furthermore, the
effects
the
of
Act
could
scarcely
have been felt until September or
probably October of 1954. The fact
is that the boom was in high gear
by that time.
An
analysis of FHA statistics
yields a surprising picture of only
a
minor (10%) increase in the
number of FHA housing
starts,
with FHA insured mortgages to¬
taling only 23% of the 1954 annual'
housing supply.
On
the
other
hand, VA starts increased an as¬
tounding 96% in 1954 over 1953
and rose from
15% to 26%
of the
1954 annual housing supply.
What
the
makes
these
nual
national product, that is,
services, has reached the anrate of $380 billion.
Steel,
aircraft
motor,
tries
Some of this record level of wages,
insurance.
life
buy
this
lend
money
mortgages
temptation
and
antee
government
of
insurance
since
ible
of
the
and
and
The
guar-
loss
lender
too
the
took
increase
2%
in
payment requirements
reduction
of
well
as
the
as
mortgage
the
was
smaller
sum,
raising redis-
ra{e? }° member banks to
o?/U£
plainly
demonstrate
the
government s concern over rising
housing prices and the possibility
of
a
relative oversupply.
Whether
tion
late" only time will tell
the
lender.
explain
How
this
can
we
Tlimn
1954
fl
II
I
n
(and continue to hold this gain to
while
the
percentage
of
HI
a
virtually
former
over
un¬
years?
PHILADELPHIA
apparent that the tremen¬
increase in the supply of
&
Company,
'
Inc
loanable funds in the hands of in¬
stitutional lenders has been the
-
Baltimore
announce
that
—
1528
Stock
was
has
volume
created
lender
to
of
a
life
the
on
The
vested in mortgages to permit the
lenders to pay their depositors and
annuitants the higher interest re¬
turn demanded.
over-supply
of
the prime
FHA
were
The
and
a
VA
of
Call
is
J
Mr. Call
partner in Lilley
■
mortgage
credit
regulations
desk during the past 10 to 15 years in the unlisted market, there
continuously awaken the investors of this country to the
by liberal
gov¬
tbe most hnportant areas for capital growth, in-
and for the location of sound conservative investments is in
vail
has
become
American
connected
Securities
1515 Eighth
Lundwith
Company,
*
listed security is still on the defensive when it goes out to compete for the investor's dollar merely because up to now no con-
shu°Uld n?t bV2 becaus? itbe "nUsJe(d market
where cats and dogs
are
traded—yet too
think this is so.
many
not i^t a place
people still seem to
^ ^
^
The only way to overcome investor apathy toward securities
traded in the Over-the-Counter Market is to mail such literature
as this "Chronicle" reprint to your customers—advertise this article
want t0
Joins
VJJ
Cm.
tc
Niader otarr
(Special to The Financial Chronicle)
CLEARWATER,
Fla.
ith
A.
M.
Kidder
&
South Graden Avenue.
—
Charles
arial6d
Co., 405
do
something even more constructive along this line do
affirmative advertising about unlisted securities in your local
papers
and make it
the leading firms in
a
cooperative effort backed
your
community.
^ °£ "hiding light under
a^
Avpnnp
mmmm, ^
Roder.ck d. Moore
a
by several of
One of the most remarkable
up
bushel" I have ever seen is the way
be investment business has neglected to inform the public
some
rcSlrWaft*
1
fc-rvi
airman*
?
Tntlwafo
L
Secretary-ireasu e
^"Washington
'
B
Harvey
y
,
:
:
DC
g W'nu* vp nffiPprQ :
In addition to the above officers,
^ following have been norm-'
nated for election to the Execu-•
tive Committee:
.
Wilfred L. Goodwyn, Jr., Good^ Olds, Washington, D. C.
fQ
ea'r term); Joseph W.J
£ener, John C. Legg & Company,:
Baltimore, Md., Ex-officio;-J. Mur-
Atkins, R. S. Dickson & Co.,
re>T
Inc-» Charlotte, N. C., Ex-officio.
Members of the nominating
committee were:
John C. Hagan, Jr.,
Maso n-Hagan, Inc.,
Chairman,,
Richmond,,
Va.; Mark Sullivan, Jr., Auchincloss, Parker & Redpath, Washington, - D. C.; W. Carroll Mead,
&
Miller
Baltimore,
Co.,
business meeting on Saturday
morning.
Walter Schmidt,
Schmidt, Poole, Roberts & Parks,
Philadelphia, President of the National Association, will address
the dinner meeting in the evening.;
Harvey B. Gram, Jr. and John C.
Hagan, III, are Co-Chairman of
the Meetings and Entertainment
.
__
of the most important firms
in America have their stocks
some of the best growth situations in
America are traded over-the-counter; and for yield comparative
Security, and breadth Of| choice it is the Over-the-Counter Market
that offers the investor the largest stock market in the world.
E^hangfandaS ^%S:„aT0erxkchSangCeks.EXChange'
interesting
customers
should
know
these
facts.
Won't
this help your salesmen to do more business with less resistance?
I
^
■
■■
l(2||'|'|C
11 Hit 3 [tl EXDBHSaS
'
■
Im Qftlllh AVIfl MiflWP^t
■" vUlllll Clllll IfilUlfwO
As part of an overall plan to
expand its facilities for investors,,
Harris, Upham & Co., nationwide
investment brokerage firm with
35 offices coast to coast and members of the New York
Stock jEx-
change, is expanding its regional
facilities in Omaha, Neb., and
Orangeburg, S. C. It was an-
3
The Omaha office, which rep-
t
location in that
new
C1ty> wlll be on the ground floor,
of the Service Life Building, and
will be in charge of James P. La
Vell and Kar, A Linin,er, resi- •
. ,,
..
,
dent managers of the firm s pres- ;
ent operations in the Omaha,
,
Council Bluffs area.
The
new
nmn^Phnr^
sales
will
hp
facilities
in
in
rhar?P of
Orangeburg w 11 be in charge of
Donald D. Salley, Jr., prominent
former automobile distributor in
state,
that
who
will maintain of-
fices at 153 Doyle street in that
Clty#
traded over-the-counter; that
Your
.
pwtp«
.
r.
W- O. Nisbet, Jr., Interstate Se-
th.e Tbronic'e" artleles before the public The un-
?.0,?tained
that
I
,t
Mmhm
.
M o o r e,
Branch,Cabell
& ?'\T
The "Chronicle" Is Taking the Lead In This
(
In my °Pinion> to° much can not be done to bring the facts
some
Colo.—Roy
credit accommoda¬
ernmental regulations has already
you
(Specifto the Financial Chronicle)
GREELEY,
money
factor; the liberal
tions engendered
will only look around and see the
opportunities for capital growth that have gone across your trading
If
in the PaPers and send it out to prospective clients—and if you
Thus, the relative
contributing factor.
ease
a
out talking with potential clients and
are
With ^m.ncan ^ecs.
American Spr«
the
money.
major portion of it had to be in¬
was
Walnut
Co.
insurance
pressure
invest
formerly
securities.
will
Every
investments available in the Over-the-Counter Market. But this
the trading department.
&
unlisted
that it
certed effort has been made to educate the public on the attractive
to put the money to work.
len, record level savings accounts,
regular amortization and prepay¬
ments, and a significant increase
against
reason
D
culprit in this situation. Easy credit
regulations merely made it easy
Swol¬
for the simple
Exchange,
Thomas
,
clients, and it should be
they are faced with the unnecessary burden of explaining and apologizing for the fact that some security they may be
offering is unlisted.
Battles
associated with their firm in
now
resistance
day that your salesmen
come,
Street, members of the Philadelphia
newspapers
all
*be unbsted market.
Pa
1
Chairman,
Roderick
Committee,
Advertise?
sent to
sales
fact tbat one
1
^
It is
be
the
investors
Company
date)
FHA starts remained
~
be n0 doubt in your mind that something positive should be
a
Battles &
•
why
booklet should
down
done to
III0III3S Udll JOinS
directly responsible? Why
did VA mortgages double in 1954
the
0
This
construction
spurt if the Housing Act of
in
~
break
3/4%
L
Address
~
Federal Reserve in
in
.
Jt
Name
advertised in
liberalization
have
been made:
'ion wiU speak briSfly „aL
U. S.
down
FHA
these steps are "too little and too
dous
*
years,
ilar
'
A
Without cost or obligation please mail me a copy ot
your pamphlet on Worlds Biggest Market Continues to
Flourish" containing data on unlisted stocks that have
paid consecutive cash dividends from 5 to 171 years.
provide for a 2%
down payment, plus closing costs,
and the self-liquidation period has
25, rather than 30
in recognition of the alarming VA mortgage increase. A sim-
tions for officers
Securities and Exchange Commis-.
Street,"Anytown,
'
been amended to
been reduced to
follow-
nomina-
g
Murray Hanson, General Coun-,
sel of the Association, and Sinclair Armstrong, Chairman of the
mail coupon below
or
for your free copy
'
Blank & Co
Main
have
regulations
n
Maryland.
-
late,
Down pay¬
ments, if any, were at the discre¬
changed
Telephone.
'
has
VA
boom.
The
j
Mead,
BLANK&CO.
was
the Federal
recently taken
steps to mitigate the excesses of
Perhaps
stocks have paid cash dividends consecu-
tively for 5 to 171 years. A free booklet, "World's Biggest
Market Continues to Flourish," will be sent you on request
—no obligation, of course.
advantage-of this fact.
government
free list of sound, growing unlisted companies
common
These steps, plus the action of the
whichever
was not
whose
a
irresist-
was
risk
the
minimized
bonds
on
enormous.
was
>
"World's Biggest Market Continues to Flourish"
Send for
to
Pressure
f
4
loan associations and used to
the
remained unchanged.
thus
cop
term to 25 years has been decreed.
figures
1954 of the VA regulations.
The
30-year self-liquidating mortgage
bearing 4.%% interest of which
the VA guaranteed 60% or
$7,500,
of
Using a double return card, or a newspaper advertisement,
along this line might be productive of interested inquiries.
salaries, profits and dividends has
been deposited in banks, savings
and
avail-*
Advertising the Product
highs.
new
under-
unsophisticated investor can under
Gxcellent sa]e<; Dromotion literature is bein* made
other indus-
and
reached
have
ran
inis excellent sales promotion literature is being made avail
abJ? by. 1the Chronicle as heretofore in an attractive pamphlet
which fits neatly in a Number 10 envelope. Compliments of and
th* dealer s name in the line below is imprinted in the space proVlded for thls PurPose when 100 coPies or more are ordered.
all
further
no
and
investor
thp most unsophisticated
pvpn
t,™d
sld
boom.
housing
that
remarkable is that there
more
was
banner
the national income from all goods
new
A review of the
statistical record since that time,
and used
the
accompanied
down
The
and the information pertaining to this market is presented in
rpmnin
tho
for
3 0
The list of over-the-counter divi-
dend Payers from 5 to 171 years alone makes interesting read-
builders have
as
to
e s
for
prices
rising
bv
t i
15c each in greater quantities.
mnrirpH
hpon
29,
the
wiU be available at a cost of 20c each in lots from 1 to 199, and .■' SecreSrv^Tre'asurer
specula-
and
u!hoc oiL
loan maturi-
d
tiQn «World,s Biggest Market Continues to Flourish." Reprints of it
activity
Investment
regulations by
lengthening
being completed; hence the brand new and completely revised
preSentation in last week's issue of the "Chronicle" bearing the cap-
is
u r-
generally. However, the task is still a long way from
? has hiln
Jfa bee
America
r
D.
the^pomt where the
to>
FHA
eralized
and j.nvestors
t.
at
of
10
Virginia.
.cje„ presentations were mailed by broker-dealers to their clients
material
and
of
h^crea fe
d
The
—
eenbrier,
Sulphur
Springs,
W.
..."
Another Reprint Available
artificialized de
that
provided
C.
White
known, thousands of reprints of previous "Chron-
As is well
t
c
G
paid from 5 to 171
in-
substantial
sustained
ing Act of 1954
in July of
a
O
1 9 5 5
years. A glance at these tabulations graphically
illustrates why investors are turning increasingly to the unlisted
market in their search for safe and highly attractive investments
which can be counted on to produce not only eminently satisfactory investment income but substantial capital gains as well.
overtones in
the
housing market. In the past
year
while, wholesale and consumer
commodity price indices
have registered surprising stability, housing costs and land prices
the fantastic spurt in housing con¬
S
day,
feature of which was the listing of the hundreds of
on
which consecutive cash dividends have been
a
stocks
for
a.m.,
cover
unlisted
Association
ers
Market Continues to Flourish'
The
factor in stimulating the resi¬
D.
35th Annual Meeting of the South¬
eastern Group, Investment|Bahk-
By JOHN DUTTON
R. WHITE
Adjunct Professor of Real Estate
New York University
Mr. White finds that the major
Thursday, October 27, 1955
.
Southeastern I3A
Easy Money Sparked
The Housing Boom
By
...
.
.
With A. M. K.Iuder Co.
(Special to The Financial Chponicle)
LAUDERDALE
Fla—Al-
F Carpenter is now affiliated
with A. M. Kidder & Co., 207 n.ast
Las Olas Boulevard.
■
Number 5476
Volume 182
Continued
from
s,
The Commercial and Financial Chronicle
.
The
10
page
inevitable
result
is
then
that federalized programs will not
meet the needs.
All
Our Economic Policies and
the
must be
these
The
higher wages, with greater pur¬
chasing power and less strikes
than at any time in history, and
they have peace to boot.
On
basis
the
will
be
this
of
hard
pretty
record, it
convince
to
The
that
What
of America that
policies
of
the
economic
Administration
Eisenhower
for them.
bad
been
Let
what else
see
us
wants
earner
have
ministration
the
how
and
measures
wage
the
liberal
wants
The normal tendency in dis¬
ture.
cussing this issue is to point with
pride to the extension of Social
Security and Unemployment In¬
surance to millions not previously
very
these
be
to
talk better
fields
basic
theory
that
was
should be solved
by government action*
If there was unemployment, the
problem
every
If there
the government
houses,
was
should
sounded
all
programs
good. The only trouble with them
they wouldn't work.
was
these
significant advances
than
is the
Eisenhower Admin¬
that the
fact
important
more
istration's fiscal
policies guarantee
security rather than cut-rate
full
security to the millions of Ameri¬
cans trying
to save and plan for
is
not
that
a
Federalized
not
out
do
will
it
The
at the
record.
who saved
man
curity, life insurance,
ment bonds received
if
back
But
lar
he
retired
the
in
only 61 cents
in
who
man
1952.
saved
worth
two
and
The
of
1953,
goods
today,
later.
half years
a
million
90
over
Americans
who
have life
insurance, the 55 million
have Social Security, the 40
who
million
enough
the
to
point
program
The people
job.
solutions
demand
is
It
here
to
the
has
Eisenhower
rendered
one
of its
most significant services.
recognize the needs. We are
content with the negative ap¬
with
proach of "how not to do it."
In the words of the President,
speaking
that
government
bonds
"We believe
the outdated high¬
Jan. 4,
on
the slum,
the
school
poor
deficiencies in health protection,
the
loss
of
job and the fear of
a
in fact, any
real injustice in the business of
living penalizes us all. And this
poverty and old
age,
Administration
to
committed
is
prevent them."
And consequently we have of¬
fered
to
the
country workable
help
the
cessors
dollar
will
they
be
and
earn
wortn
today
save
dollar
a
5,
15 years
are
Eisenhower
Administration
continued.
this
If
is
approach
what
businesslike
a
fiscal
policy does, the American pecple
want
of it
more
Consider for
so-called
tiated
in
have
disagreement
much
The
we
contracts
tiated
in
to
as
The
be
can
nego¬
place only be¬
unprecedented pros¬
payments
tract
the
But of
be
perity of the Eisenhower
under
made
era.
the
only
con¬
if
that
prosperity continues.
That prosperity will continue if
the Eisenhower economic policies
remain in effect.
What
wage
else
do
earners
the
65
million
want from govern¬
ment?
The
great
majority want
their
government to be progressive and
dynamic in dealing with the prob¬
lems for people — not static and
reactionary.
It
is
those
in
of
respect
I
conser¬
the past we have allowed the ad¬
run
away
us
rot
v/e
ask,
choice
Eisenhower
thing
As
Eisenhower
the
that
to
the very
programs,
Wilson,
that
of
Product
If
that
welfare
the
American wage earners?
test with flying
Whether it is jobs, wages,
It meets
colors.
every
power,
security,
or
on
this issue and
be
In
may
think
or
American
people for more hous¬
ing, reads, and schools, for better
medical care, for full development
the approval of
the great majority
people.
To rely on Federal Government
to
programs
meet
the
is
needs
several counts, but it is
primarily wrong because federal¬
ized programs are not adequate to
do the job.
Here are some estimated goals
in
the
fields
of
power,
roads,
schools, hospitals, and slum clear¬
ance. In the next 10 years America
wrong on
Government
would
do it.
cost
a
million
3
of
at
$20
approximately
means
advocates
policies
without
'
I
.
Hayden, Stone Adds Two
war.
(Special to The Financial
Chronicle)
Mass.—Jonathan W.
Dodge and Arthur W. Murphy
have joined the staff of Hayden,
Stone & Co., 10 Post Office Sq.
BOSTON,
highest percentage
in history.
between
relation
(Special to The Financial
for
which
Credit terms
were
Joins Inv. Planning
favorable.
is
ness
inven¬
the Nation's busi¬
tories and
a
time
With
out of line now seem to
record
our
economic
proving
Pryde is now with Investors
im¬
conditions
Joins Keller Brothers
abroad.
(Special to The Financial Chronicle)
foundation, we
need not fear for America's fu¬
ture. As long as we are not pan¬
icked into doing things wrong, as
With
solid
this
<
BOSTON, Mass.—Frank L. Was-
serman
Keller
avoid the panaceas—
pep-pills with the
long as we
the
Mass. —George
ning Corporation of New
steadily
have
we
Chronicle)
H.
Plan¬
England,
prosperity at
Inc., 68 Devonshire Street.
BOSTON,
be under control.
Zero
economic
has become
Brothers
affiliated with
Securities
Co.,
Court Street.
OHIO ELECTRIC COMPANY
OPERATIONS
RESULTS OF
For the three
For the twelve months
months
ended September
ended September 30
30
1955
1954
1955
1954
-$ 9,888,203
..
$ 8,613,604
199
$38,575,211
29,759
$33,572,175
145
Electric
Heat
29,223
-$ 9,888,348
$
8,613,803
$38,604,970
$33,601,398
? L54b,4Uf
$
1,340,182
1,843,413
851,964
966,715
$ 5,886,429
8,162,904
$ 5,408,340
7,593,772
1,146,000
3,039,553
4,121,859
3,159,063
5,921,000
2,686,502
3,613,859
2,509,202
4,838,000
Operating Expenses
Fuel used in electric
Other
production
operation
«
Maintenance
1,118,215
806,758
1,611,000
amortization.
General taxes
—
Federal income taxes
Total
q
"99,518
—:—
Provisions for depreciation and
659,859
$ 7,746,686
$
6,808,133
$30,290,808
$26,649j675
■—$ 2,141,662
$
1,805,670
$ 8,314,162
$ 6,951,723
$
34,311
-
Operating income
Other Income
Rentals
a
thousand
927
and
less
348
highway at
miles
thousand
of
cost of $100 billion.
primary
and sec¬
cost of
classrooms at
a
interest income from subsidiary,
Provision for deficit of subsidiary
Other
of
con¬
opposed
offering
an
the
alter¬
native.
31,546
$
expenses
422*
-
-
-$
Total
23,401
$
13,9195,917*
7,723"!
(loss*)
$
14,475
$
121,757
8,484
30,090
$
160,331
$
128,488
123,353
115,365
367,206
$30 billion.
million
1
beds at
288
thousand
hospital
cost of $22
of
billion.
five million
housing units and
Gross
the recondi¬
The
a
replacement
tioning of 15 million
total
cost
of
is easy in
more
at
a
$ 2,165,063
$ 8,474,493
538,803
2,094,475
1,949,634
$ 1,281,342
$ 6,380,018
215,764
215,764
859,824
$ 5,369,295
859,824
$ 1,421,916
$ 1,065,578
$ 5.520,194
$ 4,509,471
2,401,360
$0.59
2,401,360
$0-44
2,401,360
$2.30
2,401,360
$1.88
Deductions
Net income
Preferred
$ 1,820,145
527,383
$ 1,637,680
income
Interest and Other Income
$ 7,318,929
Dividends
,
$24 billion.
do
all these fields to
"Let the Federal Government
the job."
But
ment
many
demands of
This is the
shares
say,
servative
rather than
prosperity
has a broad
base.
Seventy-six percent of
the total income goes to labor.
COLUMBUS AND SOUTHERN
billion.
They offered the people a simple
way to meet these objectives —
Federal
w
need:
million kilowatts of power
101
It
Too
Council of Scottish Rite.
Operating Revenues
of the American
water and power resources.
the
—
Canavan, Rauscher, Pierce &
by state and
the Eisenhower
philosophy is that you can be
progressive
and
humanitarian
without being socialistic. And we
believe that kind of approach has
of the
the Fair Deal, they recognized the
desire of a great majority of the
our
Canavan
Texas
our
summary,
ondary
proponents cf the New Deal and
of
come
enterprise.
crisis
the
business¬
light
of the 65 million
L.
Our
we
man's Administration in the
purchasing
do
how
so-called
this
examine
John
-
DALLAS,
further progress.
expansion has
dations of peace,
1965.
as
,
elements
assure
home
than
take into ac¬
of strength
they fail to
It is based on the normal foun¬
goal,
find
of
..
of the American people.
we
prophets
i
and to
other great social needs
do
still
are
ernment
the roads, schools, houses,
What
a
John L.
Co.,
primarily through activities Inc., hasv been selected for 33rd
degree - Mason by - the Supreme
of private rather than
gov¬
the re¬
will be available to build
meet the
making
by
to the future?
as
Our recent
National
billion by
management.
these
The
$500
of
conclude
I
which
program
Gross
a
attain
we
sources
of
to
kind
count
the programs of our
is
Secretary
like them, to
Washington to provide
There
low.
aim
and
gloom who try to frighten us with
the spectre of 1929.
best American traditions,
America on the road to
too
in the
getting
and scores
prediction
predecessors,
not
because
they
were
too high, but because they
Our
more
than
interest
Humphrey
tary
progress.
were
Mason
businessmen the calibre of Secre-.
will keep
We oppose
33rd Degree
achievement of this Ad¬
no
national
We believe
designed in
still.
stand
John Ganavan Elected
in
such, President Eisenhower
And
more
American
our
some¬
biggest business
ministration has been
radical. people are not
something far
going
and
the
management in the world.
conservative, but be¬
more
tween
and
is
But
the
between
not
is
program
and
believes it ought to have the best
pro¬
always
courage
the
confi¬
face
to
yes,
world.
only where the job car
done more effectively by
private enterprise
local government.
with it.
Whatever
might
in
step
big government to steal
the ball from
been
has
gressive, and to obtain the support
of a majority
of the people it
differ from theirs?
major difference is that we
believe the way to real progress
and
prosperity is through pro¬
economic policies must do
soul searching. Too often in
vocates of
con¬
servatism
made
have
can
The
vative
some
true
we
believe
esoouse
who
the
May
that
which
e s
great,
programs
will
this
us
is
answer
is
answer
The Federal Government should
new
sure:
could
first
the
of
cause
the
be
can
dreamed of.
ever
There
wisdom of these contracts.
this
we
more
nego¬
been
industries.
some
Dealish,
New
grams
which rely primarily or
private rather than government
enterprise.
moment the
a
which
be
may
rather than less.
guaranteed annual wage
contracts
build
One
government
which
programs
-
to
too
you
10, or
from now when they re¬
tire if the sound fiscal pol cies of
have confidence that the
now
shake their heads
may
"This sounds
too liberal."
system,
believe will
roads, schools,
and
houses,
provide
better
medical
care,
develop more power and
water resources than our prede¬
can
of
federalism.
some
say,
The
that
Administration
way,
dol¬
a
will find
that his dollar will still buy a dol¬
lar's
January,
govern¬
or
needs
effectively
more
My
The Government of the United
come
But
and
these basic needs.
not
dollar in
a
static
The
We
and invested it in Social Se¬
1942
and
want
the future.
Let's look
than
the
meet
far
i pi
long as
economic
extent.
States
must continue to be.
But
far
is why I say that, on the
of progress, dynamic con¬
That
people
this
govern¬
doomed to failure.
servatism will
n c
as
the
to
•
designed to do just that,
and that is why it will succeed
where the federalized program is
issue
i
dence.
working in
private enter¬
with
p r
with
the
of
it
and
true
future
ments is
Solutions Wanted
Basic
covered.
But
principle
prise and local and state
it.
These
the
had
ever
let-down,
remain
we
America
istration?
years.
they've
awful
Getting back to the original
charge, is this a business Admin¬
spell progress
The
care
government
the
provide
on
than
before.
Government
partnership
should build them.
medical
better
needed,
need for
a
was
based
Federal
the
government should make jobs.
If
security for the fu¬
in
Their
ing his desires.
He
well.
—the conservatives do better.
Ad¬
in meet¬
up
as
claim
who
Those
is
It is
the answer?
is
10
hower
The Eisenhower program which
assumed
therefore
they opposed the end
simple.
the wage earners
the
people
the next
America's wage earners
have it better today under Eisen¬
progress,
to meet
are
we
which
America
of
resources
tapped if
needs
over
Philosophy Behind Them
27
(1775)
when the
Federal
activity
duced.
is
correspondingly
re¬
on common
Common Shares Outstanding at End
of Period..
Earnings per common share
Govern¬
the
primary re¬
sponsibility,
private
enterprise
sources dry up and state and local
assumes
Earnings
•Denotes
This
is
red
an
statements
figure.
interim statement.
are
The Company's fiscal year ends
examined by independent
public accountants.
December 31,
at which time
its financial
\
The Commercial and Financial Chronicle
(1776)
28
ures
It
the late Lord
Keynes, in one of his most brilliant essays, voiced the hope that
human beings would get on with
solving the problem of daily bread
might devote
they
that
order
in
the whole of life.
being
in this vein that
States, Dwight D. Eisennower.
perceptive.
long as he has lived on
For
more
as
had to deal
the economic problem—the
the
earth,
with
has
man
,
.
,
™arks ^
^F™n2
Lineioln to ou:r
+imA
fv,nrn
_
through
^Lerahon
own
<own genera o
problem growing out of the stubfcorn and irreducible fact that his
wants are unlimited, while the re-
•^rCeF.n0nomifyh^tZ Ts
Economic
history
is
conservatism
.
Jf^^bntinuit3 of our
the"
tne
ited.
of
chronicle
societies
how
themselves
in
effort
an
to
have
upheld
Zfe
proof
of the
bask
American
the
o£
our
ConstitutionaI democracy,
,
.,
nprpnt
ljhprtv
ftn
and
the
has been the political
ruIe Qf j
hallmark
tradition
this
of
match resources against needs.
As
across the
pages of
find today around the
variety of systems de-
Skipping
history
world
we
a
signed to meet the economic probThere is the Communism of
lem.
Russia
China.
and
There
the
are
degrees of non-Commu-
varying
,sitat,
•
There
the
are
Xr feek
thl
important advances
and
progress
jn
to
clock of
turn it back.
Many
or
natjona]
our
ijfe
reforms
their
owe
origin to th
initiative of conservconservatism
makes of
atives>
es-
or
all,
In
is
view.
lesser degree,
some
private
production, but it is very small
and an exception to the prevailing
there
conservatism
in
takes
the
long
,
its
present-day
conservatism
innovate
to
power
and
so
£o
cjjange an(j so £0 grow. It can
Jead only to economic conformity,
to slow death of the
spirit to
in
resurgence,
our
country
tradition
our
when
And
economic
ctununm;
as
has
•
ex¬
freedom is thus
weakened, so too is political freedom weakened,
Tq the Eisenhower conservative
whether
exertion,
and the socialization of in¬
success
comes.
Eisenhower
the
Third,
wants
servative
to
integrity of the people's money.
He is cognizant of the thievery
and worse that price inflation vis¬
its on the citizenry of a nation
which is forced to undergo it.
jw- To him business-whether
little, medium-sized or big-is a
word,
g°°d
because
business
counties that provide for the
tools to build and
factory and create jobs.
e<3ulP a
dislocation
suffering and
follow in its wake.
can
is
people. Business is the people
w*10 work at the job—the me-
Purt'lase
mor!
and
human
that
Business is the people on farms
and in mines who provide raw
materials that are processed to
sat*sfy consumer wants. Business
ia the^ owners, and managers who
provide the , initiative, enterprise
and organization to produce goods
and services and to disburse incomes to the participants in the
process. Business is responsibility
—responsibility to consumers, to
that
billion
$500
we
and
economy
their
essential
It
re-
volves around the nature and
ca-
pability of human beings.
It may
be put in various ways: does the
prevailing philosophy favor the
;
pression of their
is
what
of
power
thority
this
makine
economic
in the hands of
«uons
does
or
and
power
make
it
it
au
decentrahze
rely
decisions
Does
deri-
central
a
people to
on
for
themselves'?
favor
invigoration and
growth of the private sector of the
economy, or does it not?
today/debate
on
economic policy centers mainly
on
In our country
.
this issue—on the question of the
extent
to
which
government
should intervene in economic de-
cision-making.
Except in limited
the focus of
on public versus
private ownership.
There is no
though
t
vital
areas,
the debate is not
serious discussion in
.
day
of
the
America to-
proposition
that
a
thoroughgoing system of socialism
and nationalization of
.-openly
-have.
substituted
Americans
industry be
for what we
see
no
success
story for socialism anywhere in
.ihe world that suggests the wisdom of such
.
tion.-of
our
a
radical reconstruc-
own
concepts of
own-
shall
call
It
making
■noimc
by
individuals
decision-making
.ernment.
decision-
and
eco-
by
gov-
attempts
made
are
to
drive
out
keep out of government service
or
those who have risen in its ranks
Second,
the
Eisenhower
its
buying
doctrine
He rejects the
power.
that
con¬
continuous
cheapening
of
people's money to keep the
omy moving
upward — the
trine
that
our
ways
run
a
healthy.
temperature
He
because
He
it
.
deep faith
in
to
stay
national
of
unwise and unjust.
millions
who
of
holders
the
of
Americans
econ¬
inflation as
policy
rejects
is
thinks
the
doc¬
must al¬
economy
instrument
an
a
of
are
savings deposits,
building and loan shares, life in¬
savings
bonds,
policies
and
pension
given a choice, they
would never accept a deliberate
surance
rights.
If
afloat.
Such
Conservatism
The
Eisenhower
whom
the
inflation
all.
accept
is
Nor
need
this
of
tax
savers
opiate
conviction that in
deep
a
economic
starting
our
race
every
man
equal place at the
but he knows, too,
an
line,
f,eli.ev„es that there
cruellest
^r°wthV The+Su fu the *eatures of tape at the
+
same instant. He has
belief in equality that runs very
deep in his nature. It is not, however, the equality of equal shares,
but rather that of equal opportunity. In a word, he does not, as
a
some
do,
equality.
confuse
equity
and
Since, in the words of the
ancient writer, God has created
First, he wants to conserve the
system of free markets and private initiative as the best means
yet devised to plan and organize
the production that people want,
us
He is not much taken with the
idea that government price fix-
each
brothers
separate
but
has given us
the Eisenhower
seeks zealously to
purses,
conservative
protect the right to earn'more and
to
own
more
man's
of
Some
in
best
the
orderTf.to evoke
economic
ablest
effort,
among
the
inS, wage control, rationing, pro-r Founding Fathers, notably John
duction planning and materials Adams and Thomas Jefferson,
allocation
can
than
free
the
do
the
market
job
better
system—
except, of course, in time of war
when people are willing to make
special
tion.
sacrifices
The
and
to
endure
energy enterprise and
imagination of the nearly 10 million centers of planning, repre-
nor
lieves in
we
a
and
the
defends
principl
of
competition, not only withi
national
boundaries, but' acros
national
boundaries.
He "know
:
that
an economic system based o
international specialization
within
the
limits
set
by defens
and other valid national consider
a
tions,
contribute
can
health
both
of
the
to th
more
domestic
an
the world economy than can eco
nomic nationalism and autarchy
a
Eisenhower
the
seeks
servative
to
con¬
the
conserve
market mechanism when the gov¬
ernment must act to avert a de¬
pression
rules
inflation.
or
of
the
laws,
maximum
freedom in economic activity by
our
this
Within the
embedded' in
game
individual
is
take
goal is
When
it
government
to
interest
of
Americans.
for
necessary
in
measures
the
stability,
policy as well as tax ad¬
justments and public debt man¬
agement, rather than of the di¬
rect type, such as price and wage
controls, export-import controls,
gave
thought to this
much
matter
in
relation
lishment of
our
concluded that
ciety
was
to
the
vital
estab-
democracy. They
equalitarian so-
an
both
impossible
and
undesirable
government should attempt to in¬
fluence
economic
the
and
try
not
maximum of free¬
decisions
economic
make
to
leave the
measures
individual the
dom
weather
raindrops.
to ration
Such indirect
within the somewhat altered
ditions
about
of
This
the
the
is
con¬
brought
government action.
by the
approach that has
Administration
the
marked
market
the
economic
nation's
of
affairs
by
Upon as¬
suming office in 1953, one of his
President
Eisenhower.
first actions
controls
which
was
on
to dismantle the
wages
still
were
in
and
effect.
prices
This
he did in the face of advice from
some men
with little faith in free
markets that to do so would be to
loose
the
a
spiral
country.
inflation upon
Confident in his
of
conviction that such consequences
would
not
ensue,
the
President
ordered direct controls off.
Since
and that the only
solution lay in a competitive so- then, in accordance ,with his phil¬
ciety. It was with respect to this osophy, the contraction of late
basic problem of the relation of 1953 and early 1954 and the sub¬
sequent vigorous expansion
have
been moderated by monetary and
fiscal measures.
It is
is
tate,
the
abroad
of
home.
natural
free
a
But
such
can
counterpar
economy
a
internationa
an
thrive
only
if
th
domestic economy is kept in bal
ance and free.
A poliey of infla
tioh
and
controls
at
home
wil
eventually push us toward com
plementary government interven
tion in our foreign trade and in¬
vestments, as has happened in s
many countries.
Even our own
peacetime history includes exam
pies
of
domestic
experiments
which
threw
international
The
lar
disorder
into
economic
our
relations
devaluation of the dol¬
1933
the
and
import controls that
provided as a part of the
long defunct NRA, are illustrative
instances of unhappy1 memory.
were
n
Eisenhower Conservative
Is No
"Standpatter"
These then
in,
ews
Eisenhower
the durable sin¬
are
tradition
our
that
conservative
is
the
de¬
termined to protect and invigor¬
infla-. ate; free markets and private in¬
incentive
and
reward,
better way itiative,
—the Eisenhower way.
Fourth,
signed to let traders buy and sel
where market considerations die
the
are certain that it has never been part of the
and materials allocations.
In the
lc factors to which this country American tradition to assure every
descriptive words of one observer,
owes its Phenomenal material man the right of breasting the
system that have helped advancJl us °, he P°slt;<>n where we
?-r/
J°i uPon whlch ^ C(?a"
mi!0n °i
world is built,
These f®?tur®s> the Eisenhower
conservative believes, are good in
Amenca" tradition. He seeks
conserve them in the service of
.own a
future generations.
w
Americans
of
tionists, for there is
for
credit
is
the
should have
conservative
w
everything
do we ' consum
produce. /He be
growing interriationa
consume,
trade
an
amon
knows'that
He
produce
everything
policy would
a
His
conserve
sented by our private businesses one citizen to another that Lineconomic de- and farms, have provided the un- coin, at a much later date, encusion-makmg by individuals, and rivalled creative force for our eco- joined the houseless man to build
....
.
have
must
we
tradition of incentive and reward.
Features of Eisenhower
nations.
not
economy
more
by 1965 with a money that retains
they should be of the
indirect type, mainly money and
servative intends to
yship. For Americans, the choice otherwise intolerable regimenta*es
between
economic
its reckless denunciation,
either
directly, as when its moral basis
is attacked, or indirectly, as when
Eisenhower
Conservatism,
full release of the most productive
attribute of the human race, the
spirit of individual enterprise, or
does it not?
Does it place
the
I
beliefs.
own
do
conserv
* conserve
,
economic ' tifes 1
a
workers, to investors. And where
it is not, where shoddiness or sub- policy of inflation that debased
their savings by 2 or 3% a year
sidy-seeking or monopoly prac- in the name of
keeping the econ¬
tices or a medieval mentality ex-
,
difference.
of
have
can
omy
when millions of Americans are
seeking a new way to describe
•as regards ownership, there is antheir political faith. To them the
ether
and
more
discriminating President's dynamic conservatism,
criterion to apply in sorting out in belief and action, is a living ex.
vision
President's
the
future
the
conservative
Eisenhower
The
shares
hit hardest at the small
whatever degree the various
the
free
to
seeks
strengthen
*ous
been
given
impetus
largely ist among any participants in this
extreme, in our own through the high-minded leader- complex process, then by so much
country there is some public own- ship exerted
by the President,; is our system of private economic
ership, but it is small and an ex- who has described his philosophy organization weakened and by so
•ception to the
prevailing phi- as
that of
"dynamic
conserv- much
must it be cleansed and
Josophy of private ownership in atism." He has used a new term strengthened to insure its survival,
the
economic
process.
Between because we iive in a day when old
Business is one of the most perthese ends of the economic spec- labels are no longer understood vasive manifestations of America,
trum lie all sorts of mixed sys- in
the traditional
sense,
when It is the way a whole people Ortems made up of varying private "liberalism"
and
"conservatism" ganizes
its
economic
life.
The
and public fractions.
have
taken
On
new
meanings, Eisenhower conservative deplores
In
con¬
conserve
Fifth, the Eisenhower
ative
A
world-wide system of fre
kind of private economic orMoreover, he knows that infla¬
ganization is the key to the fabu- tion is the likely bringer of de¬ currencies and of freely flowing,
material well-being we en- pression and of all the terrible non-discriminatory trade, de
other
national economies may be mixed
the
legislation "along the grain of
human nature and not against it."
In the area of revenue legislation,
for example, it calls for higher
purposes than the punishment of
doctrine of Marxian Socialism. At
,
in
for
the
.
his
to
whole
he
incentives for
production of ideas or of goods.
The application of this philosophy
to the field of government calls
ven-
ture> to mediocrity and stagnation.
lncomes and Put their savings into
stop
mixed, in greater
Russia
a
has
"it
change an ally by insisting that
change be progress that there be
sentially free choice economies. continuity and steadiness on the
best
represented by the United COurse
When changes are made,
States and Canada.
they must be made with a full
None of these systems is a pure
«ense -of^responsibility
to what
type; when judged by the 'funda'-*past ' generations
have
soundly
mental criterion of ownership of done and to what future
generathe means of production, all are tions
may rightly expect.
Above
elsewhere.
disastrous
whole,
prove
as
those who would
? for
nist-planned economies in Europe
and
economy
chanic, the foreman,^ thejruck
U the people who'save from their
abundantIy
makes
history
Systems
A Variety of Economic
planning, to
the
our
we
which
down
through the centuries have organized
.
of
extra
drous
which
tradition
honorable
rent
seeks to foster
cellence and adequate rewards for
for
The President s philosopny /
overriding pursuits of life in such government is in essence a conrealms as religion, art and poetry, servative philosophy.
Ir>espousNever was that provocative Eng- mg it, he is the bearer oi a Jong
li&hman
fail¬
and
and losses will ensue, they are
an abiding conviction that it is
Substitution of direct governthe only way to a better and ment controls for free markets
stronger America, are the founda- an(j prjvate initiative in the name
tion stones which undergird ana 0£ efficiency, stability or social
pervade the economic philosophy justjce would threaten us with a
of the President of the united progressive atrophy of our won-
and
rather than
neighbor.
ment
themselves more fully to the truly
nprf.0nfivp
to
errors
a
tearn down that of his
less likely than errors of govern¬
Dynamic Conservatism
was
freedom
maximum
While individual
house for himself
judgment that during th
intervening time the con
In our time, the conservative is sflmer price index has remaine
innovate. the conductor of this strong cur¬ virtually stable.
In an economy
dispersion of the
decision-making function, there is
marked by such
Economics of Eisenhower
from
growth.
nomic
Continued from first page
Thursday, October 27, 195
...
a
testimony
integrity of our money, indirect
as
against direct governmental
to
measures
nomic
tem
stable
foster
growth, and
an
international
of
open
trade
eco¬
sys¬
and
payments.
But
Eisenhower
the
tive is
conserva-?
He knowsj
history does not Stand still.
He
is prepared, indeed, to study the]
old teachings "from new books/
He recognizes change as the law
of life and adjustment to it as the
condition of life. But this adjust¬
ment he seeks to bring about in]
ways that do not compromise the;
no
standpatter.
time-tested tenets of his economic)
faith—in
that
ways
insure
that]
the needs of the present are met
with a sense of responsibility to
the
future.
Recognition of these needs has
a larger role for
govern-]
ment in many areas as economic;
interdependence and urban in¬
involved
dustrialized
society
have
grown.
As
a
part of this development,
profound changes have occurred
in
habits
our
the
last
and
quarter
governmental
launched.
institutions
century.
programs
in
New
were
Had
they been con¬
ceived in a spirit of cooperation
and harmony, they would have
been better received and more ef¬
fective.
Had public understand¬
ing and willingness to help meet
critical personal needs been bet¬
ter mobilized by people at the
state
and
local
centralization
level,
could
more de¬
have
been
built into these programs.
history written.
was
because
grams
been
can
on
But so
And today,
the whole these
pro¬
met real needs, they have
integrated
way
servative
into the
Ameri¬
and the Eisenhower con¬
would
not
propose
going back on their essential fea¬
tures.
Rather, he seeks to im¬
prove upon them and to adapt
them to the needs of a vital, selfreliant, and fundamentally united
Number 5476
182
Volume
.
..
The Commercial and Financial Chronicle
people. 1)lis goal Is the creation of
an
keep, the economy dynamic.
invironment in which the tra¬
ditional forces of
economy
that
be
free choice
our
believes
he
there
To
must
resents
practical taking-to-heart
a
of Lincoln's century
old advice:
of gov¬
ernment, is to do for a community
of people whatever they need to
have done, but cannot do, at all,
or cannot,
so well do for them¬
"The legitimate object
anti-trust law en¬
prevent monopoly
power from exerting its corrosive
influence.
To make equality of
opportunity for all a living reality
and not merely a camouflage for selves in their separate and in¬
inequality, he vigorously supports dividual capacities. In all that the
educational and vocational pro¬ people can individually do as well
grams and
fights unremittingly for themselves, government ought
vigorous
forcement
strengthened.
are
end
to
Tobpgin with, the Eisenhower
conservative believes that we as
a
pef)ple; must recognize that,
like any ,.other system, economic
freedom ^entails certain human
hazards a,nd costs.
Under an al¬
ternative ^system of regimenta¬
tion, in j which each person is against discrimination of all kinds
not to interfere."
r
in order that the rich vein of abil¬
into his slot and decision¬
fitted
making is centralized
the costs, run
it
nomic
to
life.
mediocre
a
Under
a
eco¬
system
of
economic freedom, if there are no
safeguards for the individual, the
costs are largely in terms of in¬
security growing out of the dy¬
namic nature of
free
a
system.
minimize
these
among
our
that
we
should
conserve
wise, there must be tax legislation
what has been tested in our his¬
favorable to that type of expendi¬
ture by private business so that tory in moving boldly to meet the
changing needs of the present.
more
jobs may be created for
That philosophy looks toward a
Americans.
dynamic economy with a fair
In allthese areas the Eisen¬
chance for all to become what
.
to
support
and
effective measures to
strengthen
runs
belief
The Eisenhower conservative is
determined
Vital Elements of Eisenhower
people, may
Conservative Philosophy
be tapped.
Appropriate govern¬
Here then are the vital ele¬
ment support for research and de¬
ments of the Eisenhower conserv¬
velopment
activities
must
be
ative's philosophy which he finds
provided to help produce the seed
corn of economic progress.
Like¬ encompassed in the President's
in terms of human
dignity, of personal freedom and
resignation
in
ity and creative genius, wherever
elsewhere,
human
costs
of
.•
hower
has
conservative
found
they are capable of becoming, an
expanding economy in which eco¬
nomic bulb-snatching is as obso¬
end that can be undertaken pri¬
lete as it has always been wrong,
in the interest of all.
vately and through voluntary as¬
an economy expanding at no one's
sociation.
Similarly, he regards
The economy's dynamic char¬ expense — where your "more"
as essential, and seeks to improve
not
be
my
"less." That
acter must be fostered in another need
such government programs as un¬
respect. There must be recogni¬ philosophy envisages a govern¬
employment insurance, social se¬ tion of the role of government in ment with both a head and a
curity, housing, collective bar¬ resource development which opens heart; a government that recog¬
gaining, bank deposit insurance, the way to further private eco¬ nizes the fact that healthy growth
securities regulation and agricul¬ nomic
activity. To this end the comes about through orderly
tural pribe supports. To him, they
Eisenhower
conservative
vigor¬ change and that a vital function
are
in principle consistent with
cf government is to create condi¬
ously approves
the President's
his philosophy and, indeed, vital
tions favorable to this life-renew¬
leadership
in
reclamation
and
to it, strange as they would strike
conservation, in opening to private ing process. That philosophy de¬
his
predecessors in an earlier, initiative the peaceful develop¬ mands that this process not be
simpler time. He regards effective ment of atomic energy, in finally jeopardized either by private
efforts in these fields as essential
groups seeking to freeze the status
getting the great St. Lawrence
to
making the system of free Seaway project launched and in quo for themselves or by govern¬
ment interventionists who, with
choice operate efficiently in our
proposing a comprehensive roadeven the highest motivation, can
modern world.
He is concerned,
building program to equip this
however, that such programs be nation for the first time with an plan the economy into paralysis.
The resurgence of this philoso¬
drawn and administered in such a
adequate interstate highway sys¬
phy has been world-wide as the
way as actually to aid the func¬
tem.
shock of the Great Depression and
tioning of a free choice economy
In another aspect of resource
the economic trauma of the war
and not to sap it or straitjacket it.
development the Eisenhower con¬ years have more and more passed.
For only in a vigorous and grow¬
servative
strongly supports the In
country after country govern¬
ing economy can these programs President's
partnership power ment intervention has declined,
contribute to the real benefit of
policy against those who are still economic freedom has increased,
all the people.
beguiled by the ideological en¬ and flexible monetary policy has
Next, the Eisenhower conserv¬ chantment
of
regional
Federal been revived as the
primary gov¬
ative
believes
that
government power monopolies. Aside from his
ernor
of economic stability. The
budget policy must be directed strong aversion in principle to
way to a welfare society without
j not only to the economical use of such monopolies, he is impressed
the regimentation
of a welfare
j tax money and the balancing of by this compelling fact: in the state has been rediscovered. More
outgo against income, it must also next decade, our nation's elec¬ and more men and women the
be geared to the goal of maintain¬ trical energy requirements will at
free world over are discovering
ing the
stable growth of the least double. If we are to meet that freedom is a clean and brac¬
freedom.
strongly encourages
possible effort toward thi3
every
;
He
sion
that
for
substitute
I
which
there
is
no
the
fiscal compulobjective of an
the
annually
balanced
budget puts
I upon the Congress and the Execu¬
tive
;
Branch
of
government.
Its
influence is
salutary in the intertaxpayers. He does not
arbitrarily assert, however, that
! est of the
| an annually balanced budget is
I
the summum bonum of fiscal ad-
|. ministration. At times
the
in
strong leadership from the Presi¬
dent, with whom he believes that
these efforts are right and sound
these
economy.
He
realizes
direction
a
of
departure
overbalance
-
needs
the
expanding power
will have to produce all
rqpidly
we
a
Federal monopoly,
plainly not going
are
we
if its produc¬
can;
we
power
tion is to be
to get
the power we need. As the Presi¬
dent says, every instrumentality
which can contribute to meeting
need
the
do
must
so—local
be
encouraged to
public
groups,
as well
Government.
private,
as
the
and
Federal
matters of
President's
Quite apart from
principle, the
basic
help drain off purchasing approach has an immensely prac¬
from
an
overexpanded tical foundation. It is this: except
economy.
At others, a departure in time of grave emergency, such
in the direction of a deficit may as war or severe depression, the
help increase purchasing power to record shows that the Congress
pffset a contraction in the econ¬ will not vote enough funds to pro¬
vide Federal facilities to meet all
omy.
.can
.power
The
latter
consideration
was
our
needs. Opponents of
President's partnership policy
power
illustrated in early 1954. By main¬
the
taining taxes at existing rates, the
President might well have been
able to balance the budget in the
have fallen victim to the Fallacy
following fiscal year.
However,
his judgment was that broad tax
vital fact:
public
needs
which cannot be met through any
reductions
that
at
sential, for
economic
time
purposes
stability
Taxv reduction
was
major instruments
successfully
with
were
one
in
the
es¬
over-all
growth.
of
and
of
his
dealing so
mild eco¬
nomic contraction then underway.
"With that effective departure be¬
hind him, the President steadfastly
resumed his course toward getting
the Federal
Budget into balance.
He thus demonstrated the courage
and wisdom to
of The Unlimited Federal Budget.
The
President's
are
other
many
revenue
Federal
plainly
another
recognizes
there
policy
tax
source
dollars
than
that
we
the
can
reasonablv hope to raise in peace¬
Therefore, if local groups,
public and private, can help fi¬
nance needed power facilities by
time.
the
savings
and,
the
courage and wisdom to return to
power
it.
public purposes.
Further,
servative
the
important,
Eisenhower
believes
that
we
con¬
must
hung like a pall
will
not
only
help
meet
these
needs,' but will free Fed¬
eral tax dollars for other pressing
This
application of Eisenhower
conservatism to power
policy
rep¬
Eisenhower
conservative
policy with its
con¬
values of personal liberty
sults in less than three years. Tran¬
men
sition from the Kbrean war econ¬
Its basic beliefs have survived be¬
inflation and apparatus of
controls designed
to repress it.
to
omy
a more
normal peacetime
accompanied by a
than
was
labor surplus appears to be
a
such
economy
in
as
difficult
a
agriculture are
period of ad¬
tism.
would, of course, be
a
mis¬
take to omit from this evaluation
the
of
Eisenhower
economic
spirit
conservative's
philosophy the intrinsic
which
pervades it.
Surely
of the most distinctive marks
of the economy during the Eisen¬
utilize the labor force.
There per¬
regards
inflationism.
of
This
cult
the prime objective of
policy the attainment of
as
economic
quarter of
It proposes to repeal
experience and produce a perpet¬
every year.
It conceives of an un¬
ual boom.
broken, upward climbing trend of
the
value
of
total production.
It
contends that even minor fluctua¬
tions of the business curve can
be
abolished.
But these
no
glittering goals reflect
abandonment of the cult's basic
pessimism. It still does not believe
a free economy can generate levels
of outptfi that will employ the
labor force; hence it places its re¬
liance in massive government in¬
force of this process,
is either to
be
given sway as the cost of
achieving full employment, or it
is to be dealt with through the
S.
Dana
founder of
the
"Chronicle," and two of its
past
Editors,
the
late
Arnold
Guyot Dana and Jay E. Crane,
Vice-President of the Stand¬
now
Oil Company of New Jersey.
ard
Mr.
points
Gage
campus
to commit themselves to payments
actual
mortgage and instalment debt.
It has expressed itself also in huge
capital expenditures by business¬
lower
on
There
men.
is
widespread
mism about the future of the
in the prospect of goqd jobs
in the profitability of
omy,
tenance
this
buildings
deficit
than
a
on
a
main¬
of
of
However, .the
substantially
$1,000,000 figure
the 1954-55 deficit
was
the
as
ago.
year
The
icit
up
rehabilitation
and
anticipated
opti¬
econ¬
that
out
deficit resulted from the Univer¬
spending and in their willingness
that last year's def¬
considerably lower than
fact
was
expected
was
attributed by Mr.
to increases in investment
and gifts from alumni as
at good pay,
Gage
investment.
income
The President has
his
philosophy in
implemented
that is
in keeping with its
principles, and
this by itself has contributed much
to
the
a
way
prevailing spirit of confi¬
In a generation that has
dence.
well
savings in operating
as
Mr. Gage also points out in his
annual report that:
(1) The book value of the Uni¬
versity's
endowments
stood
at
the
historic
as
that workers
Harvard.
ness
taxes
ment.
as
well
as
investors
stake in the kind of busi¬
a
that
stimulate
invest¬
He has refused to go
along
easily merchandisable
the highest minimum
cerned. He has plainly declined to
join those who would try to make
water run uphill by reverting to
rigid price supports at unrealistic
ex¬
penses.
in heavily for politicizing its
economics, he has talked much
plain sense. He has made clear
gone
of
last
peak
June
the United States
The
of $151,908,717
30, exceeded in
only by that of
book
value
of
Yale's
endowment
creased
by $1,819,338 during the
The market value
assets
in¬
last fiscal year.
of
Yale's
endowment
last June 30
increase
was
fund
assets
$214,938,932,
an
of
$36,815,167 over the
valuation given to them June 30,
1954.
(2) Yale's income from invest¬
ments last year amounted to
453,136,
over
the
increase
an
$7,-
473,454
previous fisccal
income from
slightly
of
year. The
endowments is only
lower
than
the
$8,619,-
always taking the short run view
364 collected by Yale in term bills
—of
and
indulging
of the
present
"the
sovereignty
But, perhaps, the greatest con¬
tribution he has made to business
confidence
is
his
iron
refusal
to
politics with the people's
prosperity. He has denounced no
group in our society as greedy, or
play
bent solely on its own
ends at the expense of others. Nor
has he favored any. He has con¬
sinister,
other
fees
charged
to
stu¬
dents.
generation."
the maximum amount of gross na¬
tional product in every
genera¬
have
sity's. efforts to catch
long-deferred program
sists, however, a strong strain of
this pessimism today. But, curi¬ levels as a solution for the farm
ously enough, its adherents now problem. He has been unwilling
submerge their pessimism in a to succumb to the almost invin¬
new dogma.
They have founded cible temptation in public life of
cult
We
hower years has been confidence.
It has expressed itself among con¬
sumers
in the volume
of
their
wage is best for the workers con¬
not
every
University Has
$452,898 Deficit
Charles
one
unemployment was perma¬
nent, that attainable levels of pro¬
would
Yale
late William B.
It
the
income
in
men
by
been
advised
by
Gage, Treasurer of
justment from wartime conditions Yale, that the University has in¬
and need imaginative and for¬ curred a
$452,898 deficit for the
ward-looking assistance, the over¬ past fiscal year when operating
all performance of the economy is
expenses reached the record high
a compelling validation of the eco¬
level of $22,191,297. Yale Univer¬
nomics of Eisenhower conserva¬
sity was the Alma Mater of the
still
that1
and
free
have
tion
the problem of the future. Despite
the fact that certain areas of the
idea
duction
and women in each new time.
cause
their devotion and
very mild adjustment, and today their exertions given them vitality
the American people are produc¬ and validity.
ing more, consuming more, saving
It is our responsibility to guard
more
and
investing more than this heritage, so nobly enriched by
ever in
their history. Expanded our President, and to strengthen
private spending has offset by it for service to our generation
more
than twice
reductions in and to the generations that will
Federal spending. For three years follow after
us.^
consumer
prices have averaged
"Study from new books but
about the same.
Unemployment
from old teachings."
is declining toward minimum lev¬
els for an economy of our size and
diversity. Labor shortage rather
economy
with
large
without the sacrifice of
scious
the future of the free econo¬
over
provement of the standards of life
traditional
and ini¬
tiative. It is firmly rooted in man's
For he knows there is a better long experience in facing up to
way. He has seen the President's the economic problem and it is
program produce remarkable re¬ responsive to the aspirations of
this
mies of the world—pessimism that
of
and let them do it. Such a course
more
Optimism is driving out the pes¬
simism that has
The
rejects
have
tervention, mainly through deficit
the spending programs and super-easy
people through the securities mar¬ credit.
By such forced-feeding,
kets, the government, within safe¬ the economy is constantly to be
guards provided by law and regu¬ driven at maximum performance
lation, ought to get out of the way levels.
Inflation, the energizing
mobilizing
depart temporarily
from the goal of a balanced budget
even
ing and fair wind, indeed.
a
29
(1777)
or
stantly urged the cooperation of
all groups to the end of national
well being. The economic conse¬
quences of creating this atmos¬
phere in which to work out our
knotty economic problems have
(3) Gifts and bequests to Yale
$9,536,686. Only
$2,132,175 of this was for perma¬
nent endowment, however, which,
according to Mr. Gage, empha¬
in 1954-55 totaled
sizes
the
current
trend
among
donors to insist upon the prompt
expenditure of gifts for research
and
current
operations
rather
.
than to build up endowments.
(4) In the past two years Yale
expended $5,707,000 for new
has
and
remodeling of
existing
buildings,
the highest
figure spent for this purpose since
been enormous for good.
Presi¬ the early 1930s. Of this amount,
dent Eisenhower has truly brought Yale received $4,991,000 as gifts
from
a new Era of Good Feeling, and
alumni, friends and two
great have been its dividends for foundations. The remaining $716,all groups of our population. Down 000 came from University general
through the years, his successors funds,
j
would
do
well
to
follow
his
ex¬
ample.
This philosophy
of Eisenhower
conservatism is fit for today and
many
tomorrows because it is
a
It recognizes the
application of direct controls on living thing.
prices, wages, materials, produc¬ primacy of moral values in a ma¬
terial world. It is the key to im¬
tion and trade.
construction
On commenting on the 1954-55
deficit,
which
was
charged
against the University's endow¬
ment funds, Mr. Gage stated that
Yale spent $2,130,551 for mainte¬
nance, alterations and repairs of
University buildings last year,
compared to $1,477,802 in 1953-54.
30
The Commercial and Financial Chronicle
(1778)
Continued from page
als,
5
thus
increasing
each
serves
of
basic premise
the
Keeping
future
the
group
us
of
sources
into those that are (1) cur¬
energy
rently economic and (2) probably
economic in the foreseeable fu¬
another day
sources,
such as
for
keeping
ture,
possible
those
be
nomic in the distant future.
solar
that
energy,
eco¬
may
which
denied
.Energy
important sources of energy
Our
today come from falling
and the fossil fuels of pe¬
supply
water
The
coal.
and
troleum
energy
developed from the gravitational
effect between different levels of
water has been steadily increas¬
hydro-electric projects
ing
as new
are
completed.
It is interesting to
to
note, however, that in contrast
other
from water to total energy
small5
.supply has been relatively
While water pow¬
the years.
over
has
er
ation
advantage of
an
cancelled
out
the
by
sea¬
vagaries of rainfall, silting
sonal
of reservoirs, and the fact that
the power must be used relative¬
up
the source.6 Many of the
hydro-electric projects have been
feasible only because of the auxil¬
iary functions performed, name¬
ly flood control, water storage for
irrigation and soil conservation.
Looking to the future, it appears
ly
near
that
nish
an
continue
will
water
fur¬
to
important but relatively
small part of our energy
converted to
or
gasoline, diesel and jet fuels,
and
liquid bunker fuels which
come from liquid petroleum alone.
cleanliness
gical
require¬
and crude oil, the
plus coal, con¬
real backbone of to¬
gas
fuels of petroleum,
the
stitute
both
Since
requirements.
day's
petroleum and coal are in the for¬
mations of the earth in some un¬
the
the
supply
has
of considerable
subject
from
undiscovered
barrel of oil
cubic foot of
or
produced leaves
gas
Estimates
in
made
the
past have nearly always been re¬
vised upwards as the record un¬
folded.
economically
become
in
the
future,
do
we
gas
reserves
Some
think
corner,
large part of our gas reserves have
in
found
been
the
search
oil
for
and the economic incentive to the
present-day wildcatter is the hope
that he will get one or both when
he drills an exploratory well.
these
For
the future
supply of both oil and natural gas
reasons,
have similar relationships and are
Coal
Coal
the
king of all fuels
at the turn of the century when it
was
for
accounted
90%
of
total
our
If
will draw upon our
we
imagi¬
nations and picture a huge under¬
ground gas storage reservoir suf¬
ficiently large to hold all of the
proven
recoverable reserves of
natural gas in the United States,
would find that it would have
we
half
according to the estimates of
association.
own
were
made last year
trillion
9
28%,
to
that
which
than
less
cubic
in the amount
from
comes
has
but
annual
reserves
would
declined
million
in
1954.18
of
coal
The
has
time
sumption
coal
declining position
taken
place
increasing at
was
Coal's
the
con¬
rela¬
a
.
„
trouble
by
the
at
that total energy
tively high rate.
caused
production
peak of 630
a
bituminous
of
to below 400 million tons
per year
same
from
tons
has
lack
not
been
of
68%
of
total
States
and
in
production
energy
1920
The
energy supply.8
our
United
contributes
doubled
has
the
since
petroleum liquids with
natural gas
have provided almost
all of the increase.
This phenomenal rise in
the
meet
needs
by
its
competition.
has been
Obviously,
eum
consumption,
the
static
contrasted to
as
position
been due to
One of the
inherent
coal,
has
reasons.
important is the
more
differences
in
special
qualities between the three fuels.
Liquid
and
5 Various
estimates
from
water
total
energy
6W.
place it
of
-
fuels
Italy,
this
P.
lend
supply
l%to 3 l/z % of
energy
from
supply.
K. Lewis in his address
C.
N.
gaseous
summer
Phillips
in
citing as
the Edison
at
Rome,
reference
Electric
Institute Bulletin of June, 1953 said "An
informative study of the relative costs in
the United States of transmitting electric
in
power
coal
by
of
cause
and
comparison with shipping the
rail is available. Primarily be¬
the cost of getting the coal off
wheels
on
the
at
start
and
end
shipment, electrical transmission
'cheaper for
short
distances
but
expensive
distance
as
should not be confused with years
diesel, from a market that former¬
ly was a principal outlet for coal
supply. Oil and gas cannot be
produced at will and a state of
when
Similarly, coal has been at
supply, rather than a
stoppage, will ultimately
Secondly, withdrawals have
occur.
increased
of
variety of
a
petrol¬
ratio
sudden
is
far
The
even
future
we
the
block
of
being trans¬
handling
1,800,000
kilowatts
the
break-even
point
under
American conditions is only 260 kilom.eters
(approximately 160 miles)
when
^total capital charges are
14% and 700
Even
kilometers
power
when
(425
miles)
when
they
are
10%. For really long distances, transmis¬
sion
of
electric
7 Palmer
ysis
no
is
power
Putnam
uncompetitive.
concluded
his
anal¬
water power by saying "There is
that water power can ever
on
assurance
bear
energy
load
8 Wood
regarded
bility
than
more
of
portance
as
of
a
here
a
the
few
United
source
because
of
States."
percent
of
energy
of
the
information, however,
is insignificant.
is
the
continuously
addition
unrelia¬
its
im¬
of
replenished
field
new
by
the
discoveries
which in the past have been more
than enough to offset withdraw-
excluded
huge market that has
and
from
the
grown from
of
use
gasoline and jet fuels
through railroad use of
now
steam
factor
predominant
transportation power.
in
was
a
con-
a
11 The
liquid
13.6
production
of
petroleum to the A. P. I. esti¬
proven recoverable
reserves
was
the
at
end
this
below
ratio
In
10.
petroleum
almost
has
the
last
17
dropped
years,
liquid
6
has
or
amounted
barrels
while
to
period of time increased
total of 23 billion that has
through
and
discoveries,
equal to 86%
new
revisions
ex¬
of
total
the
proven
liquid reserves of six
ago.
In the case of liquid petro¬
leum, supply has been augmented in re¬
cent
years
by importation from, foreign
years
For
tion
from
mine
to
water
result
in
a
portation
12 Paul
Torrey before the Interstate
Compact Commission at Denver, Colo¬
rado, made the following interesting ob¬
servation regarding
secondary recovery:
"the recovery that can be obtained from
application
of
fluid
injection
methods
Oil
the
of
the
gas
to
proven
based
A.
upon
follows:
as
annual
in
production
recoverable
G.
A.
have
lion
cubic
trillion
noted
gas
produced
from
feet.
and
feet
the
that
the
siderable
in
to
tril¬
added
1946
proven
Canada
our
211.7
re¬
129
equal
to
of
reserves
It
and
and
potential
Mexico
domestic
be
must
can
supply.
be
can
recovered
in
primary reserve. There¬
crude oil reserves of
is predicted with con¬
confidence
billion
billion
barrels"
used
and
under
will
improved
directed
the
.
.
range
around
remain
183
(un¬
practices)
problem.
present
challenging
upon
have
over
the
is,
.
.
methods
recovery
and
than
".
and
the
in
rather
that
barrels
be
to
barrels
billion
40
29
oil
ex¬
present
United States
indeed,
a
Secondary
discoveries,
have
ago.
the
recoverable
was
total
to
proven
years
large
reserves
important
147
since
total
9
gas
and
Therefore,
revisions
cubic
of
natural
be
been
increased
serves
additions
fore,
the
to
that
of 1954, is a much
It is believed that
figure.
of
amount
ratio
33.5, in 1950, the ratio was 27, 1952—->
22.6, 1953—22.6, 1954—22.2. During this
period of time 65 trillion cubic feet of
gas
this
estimates,
the
1946
re¬
definite
more
conditions
economic
the beginning
addition
of
ratio
natural
are
to
high total trans¬
compared to liquid and
cost
10 The
serves,
water
fuels.
gaseous
of
and
many
and
been
years
towards
recovering
a
greater amount of oil out of known fields.
are
Oil shale constitutes
tential
extraction
experimenta¬
operations
years,
plant
ble.18
Its
be
clining
to
further
tons
last
99
45.2
60
coal
million
million
declining
year.
to
billion
barrels.
reached
in
tons
tons
in
below
peak
1917
1946
30
pro¬
de¬
and
million
entrance into the
petroleum
field
will
liquid
likely
grow
slowly until depletion of other oil
dictate
sources
its
need.19
urgent
Tar Sands
because
years
of
the
very great volumes
to
exist
in
these
promise
of
of oil known
formations.20
Problems in mining and extraction
have
weighed
nomic
and
source
creased
is
the
eco¬
of fuel from
until
nological
it
against
recovery
some
development
this
tech¬
new
in¬
or
economic incentives occur,
unlikely that they will
important
come
as
the
an
be¬
energy
of this
scope
supplies
in
our
large
are
own
importers
effort
energy
bring
in
increasing
an
to convert the
and
in
sands
tar
usable
forms
prices equivalent to that of
at
talk
is
com¬
time goes on.
has
and will
likely
amounts
as
This nation became
net importer
a
country, we
of
certain
of oil in 1948 and
continued
in
that
position
petitive fuels.
Recently, The Union Oil Com¬
pany of California has announced
plans to build a 1,000-ton-per-day
since
retort and a program of invest¬
ing $5,000,000 to back their judg¬
supply in that year.
Projects to bring
ment that oil from shale
from Canada and Mexico into the
.
American
can
Gilsonite
cur¬
Com¬
whose stock is owned joint¬
ly by the Standard Oil Company
pany,
California
of
the
and
Oil
Barber
Company, has announced a $10,000,000 project having mining and
plant capacity of 600-700 tons per
day for the conversion of Gilson¬
ite
into
petroleum
products.17
While no specific ventures have
been announced,
interest has been
concerning the feasibility
of mining and extracting petrol¬
revived
from the Athabasca tar sands
Canada.
of
These
projects
could
well be the start towards realiza¬
tion
of
from
energy
heretofore
have
sources
lain
then.
day which
14 I
am
informed by coal experts that
deposits of coal available for strip
mining are already in a declining position
due to depletion.
15 Recently,
there has been some in¬
crease
in coal production occasioned by
an
improved export market and the up¬
the
in
surge
industrial
the
U.
United
S.
coal
activity.
reserves
remaining
coal
States
Geological
indicates
report
were
Survey
issued
resources
estimated
in
Oct.
that
there
its
in
by the
report
on
1953. This
remained 1.9
1,
trillion tons of unmined coal. Seventy-five
cent of these reserves were estimated
be in thin beds, "inferred" or exist¬
ing at depths below 2,000 feet and could
be
recovered
only
at
high cost. Dis¬
counting the very high cost reserves and
using the U. S. G. S. 50% recovery fac¬
tor, there appears to be about 237 bil¬
per
to
lion
tons
ture
use
of
reserves
when
the
available
for
fu¬
of
fuel
de¬
economics
mand
sufficiently stimulates production.
Further analysis as to quality and loca¬
tion
doubt
would
substantially reduce
this figure but
unquestionably potential
reserves
are
large compared to current
no
rate
of
production.
17 Gilsonite is a relatively pure, black
solid hydrocarbon with a high resin con¬
Gilsonite
coke,
is
expected
35%
gasoline
yield 50%
and
15%/—
to
1400^1$. T. U. gas. Known deposits of
gilsonite-are not considered large com¬
pared to other sources of energy and
cited
here only
to
illustrate the trend
toward
viously
commercial
undeveloped
States
utilization
sources.
of
pre¬
13% of
foreign
equal to
domestic
and
1
natural
gas
developing and
in
are
doubt will become important
supplying part of our future needs.
Liquefaction of natural gas may
also
play a supporting role, at
future date,
some
ural
gas
in bringing nat¬
to markets from
distant
sources.
The
desirability of petroleum
imports has been a most contro¬
versial
for many years.
full of diverse
subject
The problem
is
so
opinions, conflicting interests, and
other
ramifications, that it
seems
inappropriate to discuss it in this
paper.21
that
men are willing to
capital expenditures,
large
1954,
imports
1,052,000 barrels per
was
total
our
Conversion
Coal
of
and
Hydrocarbons
When business
make
In
amounted to
dormant.
green
of
pres¬
ently may be commercially feasi¬
great hydrocarbon
deposits represented by oil shale
have been conducted in
rels
would
large po¬
and the
therefrom
of
tent, occurring
in fissures and believed
to be a residual
product of crude petro¬
13 Anthracite
oil
forms
leum.
duction
of
a
energy
directed towards energy needs and
Torrey's
total
of
source
While
petroleum
estimate
includes
onlv
crude
and when the 5.2 billion bar¬
of natural gas liquids are added, bis
and
Sweden
incentive for its pro¬
an
source.
pilot
16 Total
isted at
Although waterborne coal is cheaply
transported generally
the
loading and
unloading costs and the rail transporta¬
Germany,
useful
other
proven
that
a
added
tensions
During the past
never
been a time
exceeded
billion
in
billion,
been
1954.
production
15
reserves
of
there
years,
when
8
annual
of
mate
35
of
ratio
commer¬
a
Imports of Energy
eum
under
9
the
to
on
duction.
Probable Future Sources of
sources.
oretical reservoir, they have been
88%
dis¬
find that the ratio drops
If the 8.7% aver¬
als have been made from this the¬
the
on
we
increase in annual production
which has been experienced
in
the past five years continues to
prevail, the ratio becomes 13 to 1.
But here again we are assuming
a false premise for as withdraw¬
markets,
mitted.
if
age
tion
and
and
year
a
from 22 to 17.10
break-even
point depends primarily on
capital charges on the investment
each
modest increase of
compounded annually in the
3%
of
more
increases.
apply
land,
United
to
the
reserves
cheaper
transport, coal produc¬
conversion
but
costs
at
The Athabasca tar sands of Al¬
challenge they pre¬
industry and technologists
sent to
done
berta, Canada, have intrigued the
imagination of entrepreneurs for
available for future needs but be¬
of
successfully
be
can
Un¬
likely to increase ap¬
preciably until markets provide
substantially higher prices.
The large coal reserves in the
United States16 are of great im¬
portance to future energy supply
not
only because they will be
cause
oil
France when prices of liquid fuels
furnished
no
suitable
for the following reasons: first, it
should
be
emphasized that the
to
in
•
of whether
one
cessfully processed
fuel
coal
production
be
not
is
done
it
'
cial scale for many years in Scot¬
The
be depleted in 22 years. The prob¬
lem is not that simple, however,
of
result
not
\
producing
that will be competitive in present
day markets.
Oil has been suc¬
rently be produced economically.
declining
Petroleum presently
tion
be
can
potential
reserves
(indeed they are large)
but from its inability to furnish
of
*
or
the
con¬
the costs and convenience offered
gas
mining
it
of
devel¬
uses.
can
Energy
Coal
these figures would indi¬
our
that will
oped
pe¬
of present day energy demands at
At
feet.
methods
new
from shale is
one-
first
that
cate
your
Withdrawals
less
troleum.
contained approximately 212 tril¬
lion cubic feet at the end of 1954,
products to other
eum
problem
divert petrol¬
pressures
forms of fuel.
dropped
portation, distribution
and con¬
sumption differ in many respects,
economic
coal's contribution to the total has
not only dropped in
percentage ratings as a fuel
sup¬
(particularly fuel for
power generation)
there
will be a growing need for coal as
energy
electric
for
tributor
of
sources
turning point,15 that
increasing requirements
the
Twenty-five years later
it still was tops but beginning to
lose ground to petroleum. Today,
energy.
ply although the patterns of trans¬
interdependent at
the
at
with
for
know
that, with, increasing de¬
mand, eventually a point of di¬
minishing returns will be reached.
of
thinking indicates that
the fortunes of the coal industry
are
will'
availability
Present
Regardless of how much oil and
gas
natural
of
Shale Oil
The
whether
down,
others are operating on a break¬
even or marginal basis and
those
that show reasonable earnings are
for the greater part of the strip
mining variety.1*
but how large nature's store¬
jecture.
competitive
"
profitable have been shut
less to draw
one
supplies
crude petroleum.
upon
coal, therefore, has become static
at approximately the current pro¬
duction
level.
Mines
formerly
undevel¬
and
to
economic
The
oped sources.12 Indisputably every
it's just around the
while others are more op¬
are
associated
of} produced
as
dissolved gas with crude oil. They timistic. It is important, however,
both occur in the same kind of to realize that it will be a gradual
formations and are found in the process allowing time for adjust¬
ments and not an overnight catas¬
same
type of geological
struc¬
tures. The procedures utilized for trophe.
of the nation's
third
glance,
Petroleum
.
petroleum
liquids have inseparable relation¬
ships at the supply level.
One-
of
controversy.
and
study
quantity,
available
ultimate
been
finite
but
known
to
dependent
moved
markets.
the whole future
supply problem is the
ability of industry to supplement
consumption with new additions
key
be
ven¬
pointed towards supple¬
the
commodity
definite limits in the distance
can
petroleum
available
and
gas
it
upon
in recent years.
Petroleum
bulk
a
therefore
are
of 13.6 to l.11
reserves
The
production
of
ratio
a
re¬
house may be is a matter of con¬
that coal has been able to hold its
own
in
barrels,
and
gas
because coal is
Ail of these
success.
are
menting
high cost rail transportation, tnere
to
good bet that they feel as¬
a
tures
and
for the making of steel
uses
that
have
nexiointy
natural
of
given it consumer preference even
when prices exceed those of coal.
It has been only in the field of
power
generation and metallur¬
ments.7
Natural
has been
built upon the use
fossil extraction are identical and de¬
pretty velopment methods are similar. A
is
advantage
this
fuels,
regener¬
the exhaustible
over
much
of
the percentage
sources,
energy
Nearly all
transportation
of
The
of
of
because
its bulk characteristics'.
modern
convenience
Current Economic Sources
coal
reserves
except
billion
2.55
sulting
tanker transportation9
or
is
it is
sured of
drawals
themselves to cheap, long distance
pipeline
the
the proved reserves would be 34.8
billion barrels and the 1954 with¬
Energy Needs and Supplies
economic availability in mind, let
in
Thursday, October 27, 1955
.
peting
be drawn
can
recoverable
petroleum
liquid
disadvantage
heating field because com¬
fuels have so many more
inherent advantages in handling,
cleanliness and flexibility.
Also,
.
space
analogy
for domestic
of
siderable
re¬
year.
A similar
Whats and Wheres of Our
known
.
It is
technically possible to
con¬
vert
by heat, pressure, catalytic or
chemical reaction, coal into gas or
liquid
hydrocarbons; natural gas
liquids and oil into gas. Here
again it is a matter of economics
into
dependent
product
upon
values
whether sufficient
obtained
be
can
Oil
Company's A. C. Rubel,
before the Interstate 0:1 Compact Com¬
mission
said
"an
installation
including
mines, retorts, coking and hydrogenation
facilities, by-product recovery and utili¬
ties to produce 40,000 barrels per day of
crude shale
oil
would represent an in¬
vestment, at present labor and material
costs, of
approximately $75,000,000. A
pipeline of 40,000 barrels per day capac¬
ity from -Rifles4o Los Angeles, a distance
of approximately 815 miles, designed to
transport the semi-refined, hydrogenated
material
is
estimated
to cost
approxi¬
18 Union
mately $56,000,000. At these figures, the
material could be produced and delivered
to
the
Los Angeles
market at a cost
competitive with current crude prices,
reasonable rates of interest, de¬
allowing
preciation and profit."
19 Mr.
Rubel
also
said
in
"oil
shale is
by any means the only answer to
liquid fuel problem in
the future
but
will
supplement the natural
crude
and take up in a large measure
not
our
.
the
.
.
shortage."
20 Estimates
leum
reserves
mated
but
for
for
those
oil
of
are
potential liquid petro¬
similar to those esti¬
in the United States
shale
reserves
that
low cost mining are
magnitude.
of
accessible
much lesser
are
a
price and product package that
a
the raw material and
Industry and
sponsored re¬
programs on various phases
:to; -justify
of
you
search
these
Authorities who have examined
will
that
important
be
government provide the political' individual
speculations
have
supply and
Interesting
been
31
of trends and developments and
and coordinated reclimate that will encourage the search programs; and that also
maintenance of enterprise and there exist a better understanding
competition, plus the ground rules 0f SUpply problems between all
of fair play; that industry continue
f
^
th
vari0iis energy
-forward and progressive policies
^ ents ot . e
(7) It
conjecture, projections and as-
sumptions.
cannot profitably meet?
processing costs.
government have
(1779)
Financial Chronicle
Number 5476 ,.The Commercial and
182
Volume
made
of
energy
emphatically
requirements
for^ ,the .* distant
of hydrocarbon conversion and a
"No."23 No, because the technical
future
using
presently -known
few projects are now being un¬ problems of weight,
safety and
sources of supply as a base. These
dertaken here and in other parts energy conversion to usable power
inquiries tend to paint a gloomy of exploring all avenues of energy industries and full encouragement
of the world.22
are so great that it will be years
,:
'
and hopeless destiny for our sue- supply through continuous studies towards their solution,
before atomic
questions
say
t
-
Nuclear Fuels
.
..vl'"-
y.-
its
'
.
-
The awesome news of the ter¬
(
stand on
competitively with
other fuel industries.24 In fact, the
energy can
'
:
V;
rific
release
of
province
supply.,; The
significance
•
of
of
this
competitive fuels will be¬
more costly as time goes on
come
energy
weapon
new
that
is
military
enormous
generation is based
electric power
by the atomic bomb gave birth to
a
major new and previously un¬
anticipated
premise upon which nuclear
very
generated
energy
feet
own
accelerated and intensified its de¬
velopment and gave birth to a far
and
supply will be unable to cope
On the other
with future demand.
hand, nuclear developments can
well provide a whole new chain of
greater potential destroyer of life
and property—the hydrogen bomb.
ly
took
destruction.
force for his
a
have
ernments,
towards
Gov¬
the
paved
way
exchanging research and
Indus¬
development information.
try both here and abroad. is tak¬
ing a forward and active part to
hasten
the
day
when , nuclear
power will be a useful source of
,
.
it
world at peace. The
importance of these developments
to
energy
is
a
being featured prominently in
news and particularly so since
the
the recent Geneva Conference.
What does the impetus
this
of
source
new
those
to
energy
mean
that currently
industries
supply the nation's energy re¬
quirements? Will nuclear energy
as petrol¬
supplanted
supplant petroleum, just
itself has largely
eum
Will
coal?
find
ness,
a
customer's door armed with
your
21 The
fore,
in the gas' busi¬
new
competitor at
you,
author
the
Board
be¬
statement
last
"The
May:
of a vigorous discovery effort,
improving technology, and wise conser¬
processes
have
vation
well
nation
the
served
in
supply, and
(jrst importance
for
future
supply.
Nevertheless, these
processes are means
to enable economic
extraction
of
petroleum that exists
in
some
unknown
but
finite
quantity
and
petroleum
providing
their
function
their
source.
'
,
"This
brings
mestic
available
make
to
of
exhausLible
an
re¬
■
question of how
placed upon do¬
continuously supply
the
up
reliance
much
of
is
quantities
greater
energy
is
maintenance
be
can
to
sources
growing future needs. Will we, in sp.te of
a
progressive
and
dynamic
discovery
scon
reach a point of diminishing
effort
returns?
has
It
nection
that
deeper
and
the
that
oil
of
drilled has been
statistics indicate a
footage
to
decreasing.
con¬
develop,
to
barrels
cf
ratio
this
progressively
are
expensive
more
discovered
Recent
barrels added
ratio cf
smaller
fields
success
in
stated
been
new
to reserves
for each barrel
produced. Opposed to this
reasoning are those who point out that
the history of petroleum development is
replete
with
forecasts prophesying
an
impending oT shortage but that seem¬
ingly impending shortages have always
been offset by an increasing technological
effort
that
has
increased
supplies.
Oil
and gas reserves cannot be depleted
at
will. When
and
if shortages do occur,
they will come gradually and in a man¬
ner
that will allow adjustments without
serious impact upon
the economy.
"There
both
pursue
ing
all
future
avenues
capable
and
the
utilization
the
able."
domestic
of
to
calls
for
other
of
industry,
the
sup¬
flexibility
forms
available
become
of
sources
of
provision
ply
they
course
a
outside
cf
maintenance
when
wise
seems
perspective and would have
objective of maintaining a
threefold
dynamic,
it
needs. Such
and
balance
in support
reasons
and
directed towards keep¬
of supply open to meet
course
a
our
a
good
are
contentions
of
for
energy
and
desir¬
•
22 In
a
personal communication from
Joseph Pursglove, Jr. of the Pitts¬
burgh
Consolidated
Coal Company,
he
"several
ago,
the Bureau of
monumental research
$80,000,000 with
these goals in mind
(conversion of coal
to liquid and gaseous hydrocarbons). Big
demonstration
plants were built and it
was
proven that American coals could be
converted to gas and oil by the old Ger¬
man
processes, Fischer-Tropsch and Bergius. Beyond
that, extensive programs
were
also undertaken by private indus¬
try
during that same period including
the oil industry, the chemical industry,
and
curselves
among
others. All these
efforts
led
to
the
general
conclusion
which, as far as I can gather is now
widely accepted, that it is not possible
Mines
years
completed
costing
a
some
program
at
this
or
gasoline
the
I
time
natural
am
tinue
sure
to
schemes
to
produce
either
methane
from coal competitively
products
many
other
.
work
in
which
improvements.
their
would
.
.
.
.
wa
here,
companies,
Impact
Petroleum
."
"I
finally
a
maze
"The Prob¬
be'ieve
the
im¬
D.
Arthur
The
Inc. consultants for
City. Bank of New
Little,
National
First
York
"it
industry
our
on
the next twenty or
over
must
it
not
supplant
will supplement
should
"It
realized
be
nuclear-fueled
that
that
essentially,
equipment
will do
replace the boilers and the fuel in the
conventional operation of power systems.
Over
the
last
50 years,
fuel and pur¬
is
have, on the aver¬
3% of total cost of
manufacture, nor exceeded 7% of value
added
by
manufacture, in the United
States.
As far as the average house¬
holder is concerned only about 17%
of
chased
exceeded
...
hrs
current
all
fuel
reflects the
electric bill
costs
involved
over¬
generating
in
his
Even if atomic furnace opera¬
tion were cheaper than costs for present
conventional uses, his savings would not
amount to more than a few percent."
electricity.
24 Commercial
for
pronulsion
From
mote.
weight
re¬
standpoint,
refueling
out¬
military
and
nuclear
of
cation
energy
extreme'v
is
Dower
the
consideration
where
weighs
nuclear
of
use
of
energy
appli¬
factors,
cost
to
power
sub¬
surface fighting ships and pos¬
aircraft, and locomotives, is feas¬
ible and probably desirable. But no such
yardstick can be Used in its commercial
application where costs are the dominant
factor. Dr. Wilson points out that in the
field of power generation where nue'ear
energy
has its most likely application,
only 18% of the natural gas currently
produced is utilized in the power genera¬
tion markets. It has been possible to sup¬
marines,
sibly
market in off-peak times, pro¬
better load factor for the dis¬
systems and making it possible,
in
many
cases,
to take the excess nat¬
ural
gas
produced coincident with the
production of oil and thereby eliminating
waste.
Underground storage, petrochem¬
ical uses and possibly new methods such
as
gas liquefaction are trending
towards
a
reduction of load factor sales and it is
safe to assume that the 18%
going to
electric
power
generation now will be¬
come
a
smaller and smaller factor in the
future. Similarly only 3.3% of the U. S.
crude volume (largely residual oil) and
a
smaller percentage of its dollar value
goes
into power
generation and here
again the economics of refinerv operation
continue
to
reduce
the
production of
residual fuel oil towards increasing the
ply
this
a
tribution
of those
greater value.
percentage
products that
have
growth of electric
doubling every ten
that
when
but
the
greater
it
demand
rather
is
nuclear power
heavilv upon
considered that the
power
years,
for
generation is
it is expected
c-al
than smaller.
will
become
versely, the upturn in revenues in
the current year has not been so
wide as that of many other Class I
carriers or the industry as a
whole. Also, Federal income tax
accruals have been considerably
heavier this year than last. Never-
cannot
We
relation to indicated earning rose to $3.12 compared with $2.36
Great Northern has long a year earlier. If there were to be
having this framework, they will been recognized as a sound rail- no further year-to-year gains in
cept
them
will
to
of in
heritage
a
freedom, enterprise and progress;
power.
the final four months of the year,
earnings would still move forward
to another new all-time peak by
a small margin. Actually, further
gains should be realized in subprofit margin has been wider than sequent months with the possibilthe Class I average.
ity that 1955 earnings might reach
probably make any fears we now >oad operation. Over a period of
have appear silly down the road, years its transportation ratio has
Besides, we have pressing prob- .consistently been, lower than that
lems even today; so, let's get back of the industry as a whole and
to earth and sum up the foresee- just
as consistently its pre-tax
oart of
able
It
future.
journey into the
our
that
appears
con-
we
*
While its operating
performance
as
hi^h
$5.50 a share,
as
fidently can exnect to see the fol¬
lowing trends develop:
in the past
(1) Energy needs, barring ca¬
tastrophe and a decline in living
able, it is indicated that the full
potentialities have not even yet
been realized. Further substantial
Biylh Group Offers
standards, will continue to grow
at an increasing tempo.
reductions in costs appear to be
in
Pacific Gas & Eiec.
The
(2)
the
that
will
need
be
will
trend
great
so
be
not
sub¬
nominally
costs of energy produc-
stantially
changed
increased
by
has been highly favor¬
prospect during the next year or
so.
The company
is building a
new
fully mechanized hump yard
North Dakota, which
may be considered theJiubof the
system, arid this should be comat
occur
the
in
de-
pattern for different forms
rrand
Electric
abandoned
are
being
Cascade
Divi-
operations
on
the
develop and si0n—diesel power is being subthe economics, desir- stituted. The entire cost of this
ability and availability of supply, project, which should be com(4) The existence of potential, pieted some time next summer,
sources
of supply both at home wjn be covered by salvage from
and abroad are adequate provid- the
electrical
installations.
The
of energy as new uses
with
vary
political
a
economic
and
climate continues to encourage
in-
dustry to make the necessary investments
in
plants,
processes,
discoveries and research.
Nuclear energy will play a
(5)
relatively small part in total en-
demand for the next 20-25
ergy
and will develop as a sup-
years
becoming more
plemental
source
and
important as a partner
a competitor to other
more
rather than
forms of energy
supply.
The important contribution
(6)
that
has made to
energy
tional
welfare
can
have
inspired
pansion of
of
The first
our economy.
the freedom of
utilize
to
the
fuels of
The policy of free-
their choice.
of choice
dom
policies that
and ex-
progress
these has been
consumers
our na-
largely be at-
tributed to two broad
A nationwide investment bank¬
ing syndicate headed by Blyth &
Co., Inc., and including 198 other
^rari?es pleted within the next 12 months, underwriters,
.
to
continue
4.36% Preferred Stock
Minot,
7
and
Adjustments
(3)
will
provides the flexi-
road
will then, to all intents and
be 100% dieselized. The
is seeking ICC approval
to start joint operations with Soo
Line
between
certain points in
on Oct. 25, publicly
1,000,000 shares of 4.36%
redeemable first preferred stock
offered
($25
par
value),
of
Pacific
& Electric Co. at $25.50 per
Proceeds
from
Gas
share,
the sale of the
preferred will be added to
company's treasury and used
finance
the
company's con¬
new
the
to
struction program.
purposes,
Pacific Gas & Electric Co. sup-
company
plies electric service to approximately 1,659,000 customers and
Dakota
which will allow abandonment by
both
roads
of some duplicate
mileage. This could mark the start
of a potentially very favorable
trend with implications for important future savings. All of the
above developments should work
toward even greater operating efficiency.
From a traffic standpoint the
company's past record has also
been good and here again indications point strongly toward continuation of the favorable trend,
There has been a powerful stimuMinnesota
and
North
lus to the growth of the company's
industrial traffic from the exten-
service to approximately 1,360,000 customers (of whom 88%
are' estimated to be also electric
gas
customers) throughout the
major
part 0f northern and central Caljfornia. The system extends into
46 counties containing about one-
California popu¬
operating revenues
for the year ended July 31, 1955,
of $421,802,000 were derived 66%
from
electric service and 33%
half of the total
lation.
from
Gross
gas.
Birely £ Go. Formed
In Washington. B.C.
WASHINGTON, D. C. — Birely
sive hydro-electric developments
.
in the service area. This has been & Company is being formed with
highlighted by, but not confined offices at 1700 K Street, N. W. to
to, the aluminum industry. Also, engage in the securities business,
efficient the irrigation projects incident to Officers are
Victor M. Birely,
supplies, the power development have re- President; William C. Birely,
bility that facilitates the developnew sources of energy and
the incentive to find new uses for
old
sources
and
has
operated
ment of
towards
and
more
utilization of
Secondly,
a
our
more
energy
policy of reliance upon
certain
basic
under construction or in the plan-
Competition and prienterprise have attracted the
large volumes of risk capital and
the intense, diversified effort for
discovery, technology and development that are so necessary to
maintain
supply.
Government
for
energy.
vate
management,
areas
of
the
run
in
and
acreages of
Vice-President and Secretary; and
Lawrence H. Mayer, Assistant
Treasurer. Victor Birely and William Birely were formerly partners in Rouse, Brewer & Becker,
with which Mr. Mayer was also
associated. Mr. Robertson was
formerly in the trading department of Folger, Nolan-W. B.
Hibbs & Co., Inc.
ning stage.
c Wilder Bellamv
The industrial growth of the
*
stifling of real competition at service area and higher revenues
F. Wilder Bellamy passed away
supply level will in the long from wheat and other agricultural Oct. 24 at the age of 68 following
operate towards higher en- commodities cushioned the impact a long illness. Mr. Bellamy was a
research,
the
except
conservation
t i v e Vice-President and
Treasurer; Kenneth R. Robertson,
suited in the opening up of vast E x e c u
formerly barren land
to agriculture, which, in turn, has
led to the establishment of many
food processing plants along the
company's lines. These potentialities for broadening the traffic
base have not even yet been fully
exhausted—another new link in
the hydro-electric chain was compieted this year on the Columbia
River, and additional projects are
competition and private enterprise
to generate the necessary supplies
to meet the nation's growing needs
control
Seemingly, the imDact of
would fall most
coal
/a share reported in 1953. Con-
unheard
were
century.
cost
energy
not
age,
earnings of $4.21 a share were not
off too much from the record $4.92
oj^in the 19th 'are/pointing out that this is am"theless, with the continued imsolve
the unusually attractive return for a provement in operating efficiency,
problems that will confront our stock of this quality, particularly share earnings on the stock for
children's children's children ex- us the dividend is rather modest the eight months through August
that
ing
energy.
all
Great Northern
^
it
and
the ingenuity^-- enterprise of man, in this cen- T,"rOne investment grade rail stock
energy
coal and oils,
them. At some
time in
the future, we may find it ad¬
vantageous to turn to atomic energy for
stationary power plant ODeratian, so as
to
conserve
oil and liquid fuels derived
from oil, natural gas and liquid fuels de¬
rived from coal for small portable power
plants,
such • as automobiles,
and
for
petrochemical industries. This long term
view is perhaps one of the strongest in¬
centives
for the development
of atomic
will
ergy
rather
dormant
through
had this to say:
be emphasized that atomic en¬
nuclear
on
con¬
significant
in
as
con¬
will be negligible
twenty-five years.
Beyond that, I believe we will welcome
its
aid in helping to
take care of the
country's
rapidly
growing
needs
for
power."
pact
therefore
on
we
lying
only
Northern, Even with the price resupply, perhaps nuclear covery that has taken place from
undreamed of today, the' year's low, the stock is still
that will be available just as we selling to yield about 6.2% on the
today are utilizing energy sources present'. $2.50 dividend; Analysts
of Atomic Energy on the
Industry"
after
a
detailed
concluded
discussion
with
and
laboratories
promise
E. Wilson
Robert
ducing
Mr.
said
able
until
completely lost in
23 Dr.
Conference
Industrial
York
New
at
this
made
National
fidence and value,
become
place
A
'
energy resources
—-perhaps
dis¬
reliable,
we can
beefi
our
of energy
reliable and familiar
landmarks, to point out the way,
during the early years of such a
trip. But, as we proceed further,
less
a
edge, will point out ne,w horizons
many
and
history,
of
;
research, ac-t. Considerable buying interest in
cumulated experience and knowl- recent
weeks hag been
Great
future, guided by our trav¬
trends in which
'
have great faith that
eling experience to date, we will
less
'
tury,- that they, became useful ser-* that "had been in the doldrums for
vants of society.
For my part, I some time ^nd has been attracting
Looking down the energy road
cernible
given to
and
have been left unexplored.
these landmarks become
-
energy
which
millions of. years of
remembered that over
must be
was
industry at sources of energy
supply, the heat pump, and solar
find'
'
'
.
capital
nature
have
of
of the
of
the centuries
realizing that a number of im¬
portant sideroads, such as location
energy
*
geological-time to accumulate. But/
Today/ because of the fearsome.,
fuels.'
'
prospect of holocaust and destruc¬
tion resulting from a nuclear war,
1 nave attempted to keep on the
road
on
this
quick
trip
supreme efforts are being made main
to
utilize this new power as
a through the energy prairie, fully
benefactor to mankind rather than
period
short
.
legacy
expansion
others that would give impetus
^creased needs of present day
to
We, in
£ge, have-been accused by
some of squandering in a relative¬
our
useful products and the
of
in the 21st century.
cessors
at
either through
the
ergy
costs and
ture
supply.
consumer
a
So
end-use
level
or
diminution of fu- on Great
finally:
Northern of the general limited partner
economic letdown last year and Dominick.
in Dominick &
32
The Commercial and Financial Chronicle
(1780)
Continued from first page
time
*
(
sists in
the idea
really is. With his usual felicity, Mr. Stevenson
other day rather aptly gave the politician's version of
notion. He said: "Our objective for agriculture is
the
the
equality with the other parts of
absurd
commodities
all
is
the
njore necessary at
present time when farmers' income is falling and we
moving further away from the goal of equality."
.
This
much
won
-
make
are
so
years
factors, this relationship
no longer existed,
they said. Various other factors in the economic sys¬
tem had been able to raise their
prices
a
good deal
more
than had the farmer.
Since
no
way
and in fact at that time
wanted
reduce
to
economic
any
no
one—not
even
the
politicians—
prices, the task seemed to these
to raise the prices of farm
to be
managers
products to match the increases that had taken place in
other prices, or at least such other prices as
directly im¬
pinged
upon
the farmer.
Various technical
changes in procedure and possibly
slight modification of original concepts have oc¬
curred as the years have gone by, but
basically that is still
the concept of parity and it is the purpose of
"support"
care
to consider
carefully that we have here a scheme for fixing
by fiat or by government interference an artificially
chosen relationship, unaltered and unalterable
through
time, between
one
tors. It denies
sector of the economy and other sec¬
forbids that eternal
or
change which is the
economic system.
I
breath of life to any
Of
such relationships
course,
as
these
are
eternally
changing from year to year and from decade to decade.
How hopelessly we all should be shackled and
impeded
if this
were not the case. The fact of the matter
is that
since 1910-14 many
large segments of industry have not
done as well price-wise as has the farmer. Some of them
have
gone by the board, as they ought to have gone.
Others have found
ways and means of adjusting them¬
selves. None have cried for
help from
Washington and
none
have received
any.
carriage making industry of a half or
three quarters of a
century ago? What would have hap¬
pened if a "parity" scheme had been launched in behalf
of this
industry and at the expense of the taxpayer?
Absurd?
Of
But
course.
why
more
So
in
the
the
of
absurd than "parity"
Are
Worring Over
Coming Depression
Let
the
half
industry is
century
more
ago.
A
dependent
upon
no one supposes
tariffs than it
that
was
a
,
Basic
Agriculture is, of
depression.
tain facts that
basic industry, but it is
a
great asset to the country precisely because properly
managed it can stand on its own feet and provide us all
with food and certain other
are
ness
willing to
products at prices
confounds
As
No industry can rightly claim great¬
and basic
essentiality which must be spoon fed from
be, well known
to
things are, or ought
the politician, who would lose no
There
only
by
that
we
established
eliminate the things
woud
thrust
up
our
economy
backward.
us
little.
But
a
a
forty-one percent!
just inflation?
when
the
Gross
Product, that total
Na¬
measure
the output
of goods and serv¬
by 241% over 1929.
up
the
disposable
—
income
before taxes
of
is up
—
1929.
over
Earnings of all tvnes
are
un
bv
it
or
225%.
Yet
it
costs
us—believe
not—only 56%
it did in
to live than
more
1929.
jn the past few weeks the stock
be.
It's
apprehension
sensible
will
worry a
are
know:
we
the
rest
Americans
the
cer-
We
the
of
have
we
the
more
world.
become
we prosper,
to worry about
seem
depression.
since
on
The more
we
It has been 25 years
last economic catastrophe
there has hardly been a day
and
our
since
then
that
official
some
Is
seem
worryingest lot of people
the globe.
So, let's
before
do
we
the
Depression
market
has
vigor.
soared to
and
surged
And
highs for 25
new
the.~ market
0id
witht
man
with
reacted
his
new
The prieS
of
some
years,
like
first
an
dose
of
hormone pills, the gloomy Gusses.
0f \yan street shook their heads
The, Dow-Jones average of prettjr
30 in-
Coming?
dustnal stocks should be
.
* * we kave
anotJie^ oePres~
sion. ^fn.^e re^urn to the bleak
?ays...
ear*y .y30s W1"}
^r^a.
? arK!
.
,
Oakies and 12,800,000 unemployed
Americans .
hsten to
of
worried
aloud
about
its
recurrence.
We
have
heartedly
nomic
them
the
to
cycles
to
economic forecasters today they'd
5£?re,j re pards ,ri&ht off you.
3
Tneyd have us going back to 1930
nex*
months. But
stock market is over-priced—that
certain in
are
high, 242.59, 6.1%
above
Sept.
1929.
g0
can
we've
rjghtly
we
that the
say
overextended
ourselves—-
over-gorged ourselves—or created
another
inverted
economic
pyra-
it did 25-
as
we
going to be another depression.
The only thing that bothers us is
years ago.'
h
fL™
in
that
hearts there is
our
there s an amazing array of safeguards to prevent, or at least, to
iq?q
believe
we
extent
an
"Herald Tribune" averages Sept.
g
some
vparc.
theory
and
such
that year, the Dow as 386.10.
wholefu an ecoaoT11^ catastrophe mid that wiu topple
J !La llke the one that followed the
afro?
of eco-
subscribed
a
good measure to see how right,
these fellows are.
The Dow, this week hit 478.80.
Dn Sept. 3, 1929, the high for
the
yo.u
"
,
hasn't
in
,ro
ze™ h Jh wereEither
less effec-
f
-
jUst regari
.
thesfxmost
of? I
f
1 don t think you can riehtlyr
c+nhiii
Sa?
.
.
.h
V]
Lets )ust consider the nations.
i quo
mpor-
economy as a scale that has to be
kilter. On one side of the scale
we put our individual indebted-
impor
baianced.
mnst
tanl staDlllzers(!) The Federal Reserve System' which is perhaps the most
annovine
in
studies
Potent and least-understood bal-
neSs
abouf the
nation's economy is the
ance wheel of our economy- As
yOU know' U can create money>
withdraw money from the nation's business machinery, expand
credit> or limit "• and can exert
tremendous influence on the market for government bonds—those
innocent and wonderful pieces of
PaPer that represent not only the
erage of 386, and our consumer
price index of 73.3. On the other
side of the scale we tried—and
failed—to balance with total assets
that
Onp
fart
nf
thin^
thp
that
the
it's
ahead
go
from
know
there
maior
statistical
are
likl
and
them
make
As
vou
than
more
390
comoilations
^arts of
different
economy
Dick
four statistical tables
charts and
measure
find
T
current
analSill
the
or
Dredictions
steel
to
the
production
hou^producUon^ the^ Herald
waU
investors'
stock
aver-
and I believe there's another
ages,
stock
called—let's
average
believe
I
when
come.
out three
or
know
don't
we
going to
call
thev
it
see—
the
Dow
Jones
it
Anyway
unethical to
downright
seems
for
me
analyst to
an
couple of these measuring
a
out
of
the
or
be
so'bad F/te'covered i^at
on
tables.
been
been
was
the other
Fact
has never
time in economic history
a
to
all of
is, there
nation
a
has
than
ours
been
more
is right
now.
important, there has never
time
a
when
obstacles
clearer
keep
its
nation
a
to
had
overcome
level
prosperity
to
and
stable.
is
sense
no
ing all of the
ures.
at
at
one
come
in
statistics
my
recit-
and
fig-
You know that employment
a
peak.
of
Unemployment
lowest
its
has hit
a
of
all
taxpaying
we
savings and thrift accounts up to
$10,000 so that if a bank should
new
points.
record.
is
In-
Cor-
it
1929
of
out
was
of $43 billion; our stock av-
°f $2C6 biUion; a dollar whose
purchasing
power
was
worth
81 cents; national income of $87
billion and
a
Gross National
Product of $103 billion.
Today We Are in Balance
Today we're in balance
*
(2) The Federal Deposit Insurance Corporation which insures
in
Back
Americans, but their credit as
—
even
tipping toward the beneficial side
of
the scale.
On
the
side,
one
indebtedness
of $100 billion—stock average of
fad~and ,®hat
an.,u"us"a'fj8,8,0;,8 consumer's Prlce lndex
^ep8"it0r.al "Jill'get their money On this good side of the scale
?eP°s"ors wm 8
*
you'll find: Assets of $800 billion
Securities
(3) The
and
Securities
ana
Ex-
&x
—purchasing power of the dollar
national
rents*
billion
$320
income
of
(estimated) ;-a Gross
chang^with Cre'sult fhatVere
National Product of $384 billion,
few, if any, worthless stocks
offered for sale through the legitimately established channels.
°rJ?o
are
(4)
The
Council
is
Advisers—which
dated in
one
man
of
Economic
now
consoli-
(Dr. Arthur F.
the
threat of recession
dications
of
(5)
or
inflation
in
the in-
time
to
counter-action.
Unemployment
:compensa-
tion, the state-controlled setups
for supplying income to those laid
off, and
(6) The Social Security Administration which aids
an
increasing
.
_
™
enough of >
our
8
g,
indebtedness,
and
our
powerful foun-
our
bj,gb
cost
easy
tbing
stock prices
of
consumer
products
Burns), whose duty it is to detect
recommend
There
is
indebtedness
whole context
the
strength of what one
two of them register go ahead
and
and
pay.
government in order to live. These
to
we can
my
before the bust.
year
by 204%
top of its chartlines.
in fact, they should
little silly to
a
economy today with
For example —
National income
today is 241%
higher than it was in 1929—that
And
highs. Expenditures for plant
q u i p m e n t are rocketing
ahead.
Nearly every statistical
indicator is bursting through the
and
a
have developed an astonishing
new national characteristic which
More
a
of
to
when
course,
nave
have
things.
let_s exPlore some of the
facts and then the future.
Doing safeguards, some of the safety de- and said: "Just like 1929 all over
that
we
might get an idea of ^ces we have to prevent us from again!»
whether or not we can have an- slldlnS back to another depression.
Well, let's see if they're right.
prosperous
Industry, Of Course
our
1929.
Americans
then, examine first the
us,
happening
regarded, and
profits
protits
corn-
is always
saving, Give me
For-Instance—so I'll give you
For-Instance: For Instance:
e
tuait
We
tariff rates
so
ladies
cult, who are given to making
predictions, one can hardly call
this a
profession — they have
nothing much to profess.
devices
to be
and
my
pick
The
light of the failures
gentlemen
chemical
industry is now able to ask prices a
good deal higher than those it got in 1910-14, but not as
much higher as the
price of farm products. It has asked
no
help from Washington and is getting none — unless
are
poraie
porate
and
Tribune"
Where is the
for the farmer?
manKina s
mankind's
help
19297 It'7
son
of
new
"equality" for
the matter
I
in
in
1955*
some
agriculture. Now it is evident to all who
of
tional
Against Depression
a
loans to restore and maintain this kind of
that
ices, is
years
man-
to
actually it's
compare
Is this
history, and we're doing it again
own
principal
stabilizers
Two hundred
The Best Insurance
prosperous
pivsijeruua
the
are
Hardly,
other
at hand to reduce other prices,
was
But
year pay
in
self-styled friends
of the farmer selected certain pre-World War I years—gen¬
erally 1910-1914—and set up the claim that prices in this
period were normal and fair for the farmer. The relation
between the prices he was getting during those years to
the prices of things he habitually bought was right and
fair, so the claim ran. But thanks to World War I and
various other
after
are
their
.
occupied with other chores,
Continued form page 11
in the
"Parity"?
Well, in the early New Deal
year
have
or
tectfng'your properly*whHe^ou™e
many
phrases of other
politicians whose main interest is to get the farmers' votes
while losing none elsewhere. But what, really, is this thing
we call "parity"?
What Is
we
earning
built-in
boom
inquire what the plan really is,
they did they, of course, could not find the answer
or
when
sense
age
S)/'tir|g *?. think of these
analysed dispas-
large segments
of our population to continue in a
"way of life"? Farming,
self-reliant, independent, and self-supporting, may well
be a "way of
life"—though we confess we do not know
precisely what the words mean—but hardly if it must be
supported by taxation.
do not take the trouble to
in these words of Mr. Stevenson
be when
.
support for the plan. When so
put, it sounds vaguely fair and reasonable, and all too
and if
found to
soon
Americans who
of
us avoid another
is a way of life, or whatever it is, can it be
essential to the nation if it must be subsidized? Do we
so
the
type of smooth politician's version of the matter
has doubtless
is
October 27, 1955
retirement
These
made
sionately. If it
yardstick for measuring this equality is parity
on
relating what a farmer
gets for what he sells to what he must pay for what he
buys. And 9G% of what is fair is certainly not unfair or
too high. Support by government loans at 90% of parity
basic
and
of
incapable
living.
born of earlier political campaigns, that
farming is not an industry, but a way of life is equally
"Our
for
number
doing.
our economy.
Thursday,
.
reached
The old saw,
formula for fairness based
—a
proclaiming them from the house tops if some
industry (which commanded no votes of conse¬
quence) were to enunciate them and undertake to dip its
hand into the public till in the
way that the farmer per¬
As We See It
I
in
other
..
jt>s
an'
inflation has
to
eroded
to
our
say
that
earnings
point where the economy is
imperiled.
a
But is
that true?
Back in
1930
when the average hourly earnings
were
ing
only 56 cents, the purchasof the dollar was high
power
enough so that this 56 cents was
the equivalent of 77 cents—based
Number 5476
Volume 182
the
©n
1935-39
.
equalling
average
typical
economist
sound dollar of 100 cents.
worried.
Pretty good, it's true, to earn 56
a
Ronald Beaton Joins "
He's
you!
for
trouble
feeding
we'd
Sure
have
it
worth
be
77
But let's not be too uncharitable
with
and
them if our crop yields
methods of farming remained
the
have
and
cents
cents.
same
who says
situation.
the
the average hourly earn¬
ings of Americans are $1.76. After
allowing for the erosion of infla¬
the
present
own
our
Today
tion—and
they
as
Group Securities
Governments
on
these
of
said
econo¬
same
would be ridiculous
it
Henry Ford to make so many
roads
weren't
PETERSBURG, Fla.—Ron¬
ST.
they're going to be just
2000? I'll bet
lathers
mists
Reporter
By JOHN T. CHIPPENDALE, JR.
Beaton, previously Execu¬
Vice-President of McCleary
ald A.
in the year
same
for
Our
But
today.
are
tive
interest rates, which was again
emphasized when the prime bank rate and other loaning rates were
advanced, seems to have been pretty well taken by the Govern¬
The
trend
ment bond
toward
higher
&
enough to hold them.
which
gives us average hourly earnings
of $1.56. :
.
.
I suggest that $1.56 in real in¬
Meanwhile, your job and my
job is to persuade people to spend
a
lion's share of their earnings.
been
is
come
better
real
income,
you
than
earned
77
cents
in
though in 1930
even
less
while today
more,
.
realized
and
you
Another
bad
habit
the
of
is
to
aca¬
contrast
situation
with
the
situations in other countries—and
is what makes our
what
move,
makes
us
prosperous.
The
we
economists
American
our
economy
earn more
and realize less.
demic
For spending
thing I fear is what
only
to ourselves in the
We might vote more
legislation—ever heav¬
do
may
ballot boxes.
socialistic
ier and
But
confiscatory taxes.
more
the
it happens very pften that the for¬
eign countries look better in these
long range, I do
not fear a depression.
You know, people are not al¬
comparisons.
lowed
Thus I'd like to clear up a
about
point
the
French.
Throughout
history the French have received
the plaudits of all other national¬
ities for being the world's greatest
lovers.
I have been looking at
,
of
some
tics
our
which
show
the French
vastly
American statis¬
own
ability
overrated
Americans
insofar
that
as
concerned this is
are
and
a
the
far ahead of them.
are
The
figures I cite are, of course,
figures on the birth rate. This
the
is watched with scientific interest
It is now esti¬
1970 we
population of 200,000,-
by the economists.
that
mated
will have
by
a
000 Americans
spenders,
the year
—
workers,
savers,
of them.
one
of
resources—for
our
shelter.
and
In
„
,
demands
the
—
every
:
think
Just
all
consumers
on
China
in
or
eco¬
nomically unbalanced nations like
Italy,
such
the
throw
would
into
of
whopping crop
a
kids
about
turmoil.
economy
A Nation of Suppliers and Buyers
version
unique
Ours is not
have
we
a
capitalism.
of
system of conserva¬
a
tion—nor is it merely a system of
production. We are a nation of
suppliers and buyers.
The more
we buy, the more we have to sup¬
ply—and the more employment is
created.
hower
in
risen
has
States
three-quarters of a TRIL¬
dollars — an
increase
of
above
LION
than
more
The
II.
asset
Well, if I can't be
moderate
tween
then
holdings of the con¬
country of ours—
cash, insurance, homes, busi¬
interests and other liquid or
easily salable possessions are now
in
excess
of
$800,000,000,000.
this there are offsetting
of $100,000,000,000.
Against
debts
families
the
Half
of
re-
our
public now have a net worth of
.$7,500 or more. A sixth of them
own more than $30,000 in net as¬
.
;
families
.
one-tenth
than
Less
sets.
have
For
'
there
has
of
the
than
"debts
more
.assets.
-
*
-
'
in the past
been
radical change in the
-composition
of o
- economic
20
years
-structure.
a
Until
a
few years
ago,
like a pyramid,
with a few rich people at the top
and a lot of poor people at the
«bottom. Today it's like a diamond
*•—with a very few rich at
the
'our
top,
economy was
a
very
tom—and
ple
vast
bulk
to
getting enough
fifths
under
of
$5,000
a
year
bear
a
side
—
with
We're
just entering the atomic
hardly scratched
the electronic
age. Before us there are tremen¬
dous achievements and glamorous
we've
age—yet
the chemical age or
unknown fields to conquer.
You've
the
taken
strong
a
in
part
growth. You'll take an
part in the growth of the
past
active
put
who
There's not much
read
sense
in
Banks
are
that the tightness does not become acute. Federal
funds are still available to those commercial banks that are not
inclined to borrow from the Federal Reserve Banks.
so
Accordingly, the money markets continue to be
indications
available that the mild squeeze
now
earn
orderly with -
which was evident
especially Treasury bills, has passed for
With the yield on the most recent offering of
in the short-term issues,
the
time
being.
Treasury bills under the rediscount rate, it does
there will be any change now in the rate which
not seem as though
the Central Banks
charge the member banks for borrowings.
opinion of many money market spe¬
cialists that the powers that be, will not be inclined to move too
fast as far as a change in the rediscount rate is concerned.
It is
felt in these quarters that more time will be needed by the authori¬
ties to see what takes place in the money markets as a whole, in
It still appears to be the
spite of the increase in the prime
rates.'■ :
'
"
.
Co., Inc., of New York
Oct. 25 publicly offered
issue of 300,000 shares of com¬
stock
Tax switches continue to
with the proceeds being reinvested in the more
issues.
ury
incor¬
in New York in April,
1951, and is engaged in the de¬
velopment, manufacture and sale
of precision electronic equipment.
and
net
The favorable action of the
after taxes were
year.
order
expand further its
and industrial busi¬
to
commercial
gram
Republic, in September, 1955, ac¬
producing
the
home
is
and
called
for
"Dorphone"
system
the
developing a
radio
presently
of differently styled
group
and radio-clock combinations. The
sell them
quantity to home builders.
company
to
plans
The net proceeds from
of the
for
stock
will
of
expansion
testing of new
working
eral
capital
the
Form
It
is
also
believed that the
gen¬
LAKE
SALT
CITY,
Utah
been
State
Brokerage Inc. has
with offices at 2520
South
a
—
H.
L.
Robbins
&
State
Street
securities business.
to
engage
in
Officers are
Sheldon
M. Fechtor has become associated
with
Co.,
Inc.,
40 Pearl Street.
Eugene D.
low
C.
L.
Eyre, President; Har¬
Jones,
Vice-President;
L.
and Glen
L.
Secretary,
Eyre,
Crandall, Treasurer.
wor¬
With Merrill
Lynch
DETROIT, Mich.—Carl A. Pohly
rill
become
Lynch,
Beane,
associated
Pierce,
Congress and
of
Beaton's
Mr.
broad
experience includes
as
investment
earlier posts
Florida West Coast Sales Man^
for A. M. Kidder & Co. and
managerships
of
both
ager
branch
Merrill
Beane
Lynch, Pierce, Fenner
and
&
Goodbody & Co.
Mr. Beaton will make his head¬
quarters .at
Avenue,
He is a
22nd
1321
North, in St. Petersburg.
past governor of that city's Cham¬
ber of Commerce and past Presi¬
dent
of
the
Children's
Service
He is also active in both
Bureau.
the
City and Community Welfare
Councils.
Oct.
of
Whaley Co.
27
F.
C.
Whaley &
members of the New York
Stock Exchange, will be formed
with offices at 71 Broadway. Part¬
ners will be Frederick C. Whaley,
Co.,
member of the Exchange,
general
Daniel M. McKeon,
limited partner. Both have been
and
partner
active
as
individual floor brokers.
A. G. Becker Officer
SAN FRANCISCO,
liam
Calif.—Wil¬
Murphy will become As¬
V.
Secretary of A. G. Becker
Inc., with headquarter in
Francisco office, Russ
Co.,
San
the
Building.
Shaskan Co. Changes
Nov.
On
George F.
1
Shaskan,
Jr., general partner in Shaskan &
Co., 40 Exchange Place, New York
Cify, members of the New York
Stock
Exchange,
limited
partner.
will
retire
Oct.
from
will become a
Peter J. Eichele
partnership
31.
year-end new money
of
to
U. S.TREASURY
STATE, MUNICIPAL
and
PUBLIC REVENUE
•
SECURITIES
William Bayne
William
with Mer¬
Fenner
&
Shelby Sts.
Annual Dinner Nov. 9
Stone & Co.. President of the Pur¬
chases and Sales-Tabulatihg
sion
Bayrie, partner in F. S.
Moseley & Co., passed away Oct.
22 after
an
extended illness.
Wall
of
cf Stock
nounced
Street,
Divi¬
Association
Exchange Firms, has an¬
that
the
Annual
Dinner
of the
Division will be held at the
Hotel
Statler of Wednesday, Nov.
9,
1955.
Bert
(Special to The Financial Chronicle)
has
part
Anthony P. Rizzuto, of Hayden,
—
formed
Valley
Mass.
and
P. & S. Division to Hold
Valley State
Brokerage Incorporated
corporate purposes.
WORCESTER,
Louisiana
Tennessee.
tax-exempt
raising venture and refunding of the Treasury will be taken care
through tax notes, along with some kind of an option deal
holders of the maturing issues.
products; for
other
Georgia,
Mississippi,
fa¬
development
and
Beaton
pay
production
cilities for research,
and
to
more
money
of
Government.
in
the sale
be used
list, has had a compensating influence
Although it is still a bit early to be giving too
low priced
a
the
Government market, particularly
Commodity Credit Corp. Issue Expected
much considera¬
tion to the year-end financing of the Treasury, some discussion is
being heard now as to what might take place at that time. The debt
of the Government is bumping right up against the legal limit, so
there is not a great deal of leeway available for the new moneyraising operation of the Treasury. This probably means that there
will be an offering in the near future of Commodity Credit Cor¬
poration securities in order to ease the debt limit position of the
quired all of the outstanding stock
of Dorphone Inc. which is now an
affiliate of Republic. This affili¬
intercommunication
A.
Alabama,
&
attention than was the case not so long ago.
which has been going into the middle-term
issues has come from the sale of
intermediate-term Treasury obligations.
bit
a
the
maturities
throughout the UnitedStates,
ate is now
t fa-
terri¬
tory
includes
Florida,
sistant
cases,
of
Part
of the in¬
building pro¬
new-home
tensive
longer end of
getting
are
and in recognition
ness
distant Treas¬
with indications that the longest maturities of these
offerings have found rather sizable buyers among institutions that
are interested in tax-exempt income. It is also indicated that some
of the intermediate maturities of state and municipal obligations
most
fiscal
preceding
the
s ou
eastern
Form F. C.
other sectors of the bond market. Recent offerings of cor¬
porate bonds have gone quite well, with insurance companies and
pension funds being among the prominent buyers of these new
issues. Likewise, the tax free obligations have been well taken in
This compares with net
sales of $426,380 and a net loss of
for
Inc.
e s,
upon
$53,148.
$42,688
the
in
ended April 30, 1955,
to
$597,255
profits
i t i
The
As
Corporate and Municipal Bonds in Favor
amounted
sales
Secu-
Group
r
play an important role in the Govr
cases,
porated
For the year
of
funds
market, with indications that the extending of maturities
is still going on in most of these operations. It is reported that the
intermediate term maturities are being disposed of in quite a few
(par 10 cents) of Re¬
was
mutual
the
ernment
public Electronic Industries Corp.
at a price of $1 per share as a
speculation.
Republic Electronic
"of
sponsors
.
The long-Government market continues to give a good account
of itself, in spite of the higher rates which are being charged for
all types of borrowings. This means that the more distant maturi¬
ties are moving into stronger hands and it is reported that the 3s
of 1995 are being well taken by investors around the 100 level. It
is indicated, however, that there still is a fairly ample supply of
the longest Government bond when quotations get around the cost
levels of certain institutional holders of this obligation.
on
I n c.,
Group,
bank rate and the other lending
...
Keene &
City,
Dis-
tributors
Long Bond Market Acting Well
Slock at $1 a Share
a
Central
enough funds,
re¬
man¬
for
ager
Expected
to remain on the tight side and
in the policy of the powers that
furnishing the money market with
(Special to The Financial Chronicle)
piece just the
other day put out by the United
Nations, suggesting that by the
year 2000 there would be so many
people on Earth, we'd have trouble
feeding them
all. There's your
I
The
be.
Republic Electronic
half of the nation's wealth.
rying.
by lending institutions, appear to
.
H. L. Robbins Adds
nearly
own
rates
The money market continues
immediate change is indicated
no
future.
Why be afraid?
A de-*
pression's the last thing to fear.
peo¬
that nearly four-
families
the
or
the
on
them
of
into the "middle income bracket."
It's significant
bull
a
me
be¬
the BULLS.
■-
few poor at the bot¬
the
being
choose
gional
Ronald
economic
an
must
and
count
In
this
in
sumers
of
since the end
50%
War
World
the
wealth
consumer
United
the
ness
basis
anti-Eisenhower.
or
net
■
this
On
W, for instance—
or antipro-Eisen¬
You're either
G A W.
mon
Here
A
you're either pro-G A W
an
But not here,
G
the
thinker
moderate
a
eastern
increase in
the recent
to
Discount Rate Change Not
moderate any more.
be
the reaction
of
going too far in either direction.
countries
some
India
or
be
to
can't
You
brunt
have regained a
On the other
hand, the more distant Government securities were not too mucn
disturbed by the upward trend in loaning rates.
Demand for the
longer Treasury issues is still growing, which is a favorable factor.
However, current opinions, although constructive as far as the
longer term obligations are concerned, do not appear to expect a
great deal more than a firm trading market, with periods of ease
being looked upon as buying opportunities. Portfolio adjustments,
along with the year-end new money raising and refunding of the
Treasury, will probably tend to keep the Government market from
interest
clothing
food,
this might not be a happy trend.
In
strictly
agricultural1 nations
like
over
the
bore
p<-
a
pointed south-
%«;■ i;/,}
part of their equilibrium for the time being, at least.
.
there
because
has
dealers,
investment
Co.,
The near-term issues of Treasury obligations,
market.
figuring the dollar as
being worth only 52 cents — that
cars
3S
(1781)
The Commercial and Financial Chronicle
..
& Co.
INCORPORATED
15 BROAD
Seligman,
of Thomson &
McKinnon, Chairman of the En¬
tertainment
that
Aubrey G. Lanston
about
stated
Committee,
600
members
guests are expected at the
and
dinner.
ST., NEW YORK 5
Whitehall 3-1200
231 So. La Salle St.
45 Milk St.
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
34
The Commercial and Financial Chronicle
(1782)
Continued
from
tuilliuil
CU1U
theories
9
page
of
One
A
plus; 18 companies indicated that
they were going to treat it in
other
some
companies
three
and
manner;
undecided.
were
final
should
tion
accelerated
where
I
—
it
will
per¬
The Perfect Price of Steel
deprecia¬
result
worthwhile tax deduction.
have
in
a
er's money away from him unless he knows he's getting
he is voluntarily willing to part he'll be back for more,
As you
undoubtedly gathered, I be-
lieve that the tax deferral should with it for what we offer him in
the category of percentage deple- not be used to reduce rates. But, exchange. In a free economy, the
tion or deduction for intangible regardless of regulatory treatment customer is still king.
well drilling expenses, and not in in rate cases, I still believe accelSo it is understandable why the
the category ofjmunusual deduc- erated
be person to whom we devote most
should
depreciation
person to
we
tion, as does accelerated amorti- taken.
nf our thought
^f+nrt
ic
tho
of
m,r
Reasons for Setting Up
Reserve
a
zation
of
facilities.
emergency
of
Some
the
those who
account
serve
First
for^in
given
reasons
setting up
were
orovided
was
order issued by a regu-
latory commission.
Second
the amount is
liability and
Depreciation
is^iot
generally, represents the
That,
deferred
a
the
undertaken. I think it is fair to
?ta!e that sooner or later a maJ0nty °/ utlbties will adopt some
%?££$£?£££"* P™Vid'nfThird
for
that there
treating
this
no reason
was
differently
any
than emergency accelerated amortization had been treated.
One
indicated that it
its inde-
company
doing
was
it
because
pendent auditors stated that that
was the way it should be done.
One
indicated that it
company
doing 'it because it
was
agreement with the
the
American
I
Institute
of
firm
which
that
tax
issued
stated
tax
Ac-
they
should
be
re-
since
if
it was placed in surplus, even
restricted, it might give a distorted picture of the debt-equity
if
ratio.
for
It
advised
of
clients
surplus
pulled
out
equity
ratios
in
that
analysis
deferral
tax
restricted
in
its
of
purposes
amount
any
included
would
appraising
and
other
be
debt-
matters
Pertaining to financial analysis.
I
think that this observation should
todushvnsiderable intereSt t0 0Ur
The
lhe
nrimarv
primary
cording
the
stncted
tax
it
set up
would
in
requirements
The
poses.
ered
as
for
rate
First,
case
purwas
consid-
was
of capital,
provided for
part
a
were
Fourth
since
con-
or.
ori-
the
a
company not
covered
by
suryey to record the tax de~
ferral
in
Earned
Surplus
Re-
stricted for Future Federal Taxes
income.
on
in
james
11
of
orders
regulatory
agencies
prescribing
accounting treatment to be
the
followed if
a
adopts
company
celerated depreciation.!
is
noteworthy
ac-
I think it
that
the Florida
a
prior acand
has rec-
Commission reversed
counting bulletin
ognized that a utility
accelerated
take
can
depreciation
ders
ies.
there
and
use
affecting
The
successive
were
different
first
order
be
compan-
disapproved
recorded
in
restricted
surplus. The order indicated support for the theory that a permanent tax reduction results.
an-
the Commission
comPan-V,
vile
|
V-/V/lllllllOOlvll
adoption of accelerated depreciation, but in that
case the tax deferral was to be
recorded
i
am
in
familiar
„
surplus.
engaging
from
of-
All
Hosea
'
the
reserve
that
recording it in restricted
plus
would
be
it
treatment,
acceptable
sur-
if
re-
quired by the regulatory commission. Another undecided
company
indicated it favored using the reserve
method since it was consistent with the industry's
position
that the tax
saving is a
and not
deferral,
permanent saving, and
a
thus, the subdivision
serve
appears
in
be
to
tax
a
the
re-
proper
account.
The
companies
that
reported
other
use
some
pany,
the
method.
One
however, indicated
would
record
taxes
com-
that
it
as
rently
paid curthus reflecting the tax re-
duction
in
net
income.
given for this method
view
of
plant
each
continuing
year,
The
was
additions
accelerateJ
to
de-
preciation once adopted will be a
continuing deduction for a conlax
aeierrai
seems
to
lali
in
man
pay
problems of
ALBANY, n. Y.
a
view
the
of
large segment
of the industry to use accelerated
depreciation, it should
present
a
united front to the NARUC against
this theory. The industry should
make it clear that in accepting
don't
have
easier solu¬
any
problem than do
.
,
|j
you
A
L<M£lBV UfOlM
^
.
.
Qgjgfg lAitor |eU|t|
;
fcWlifc l?iiuau
R SffhtilMr lift
ygflllllg UVa BOVlid
.
*
•
So when we think about prices
;
..
-
interest, to yield 3.30%.
accruecj
for
our
products, we must consider all of these problems I have
Bernard J.
—
our
Award
^e
of
i=sue
the
was
won
by
at comDetitive sale ves-
ar0uD
Stem is engaging in a securities .listed. We naturally give much firdfv fOct
on
a^ bid of
business from offices at 305 New thought to the reaction of the 10080%
Scotland Avenue under the name general public since, understandnroceeds from the financing
of B; J. Stein Co. Mr. Stein was abiy, they have considerable in- ;will be aDnlied bv the company
Previously with Sutro Bros. & Co. Merest in the activities of such a toward the construction of
utility
.
basic industry
Bornstein
hafbeln
42
RavmnnH
&
Broadway
rv>
Tnr
offtoi.
formed
New York
at
City to
steel.
as
And, ad- v>iant
and see what Congress ,is s°ins}°
do about. tax®s- controls, mvestiinflation, and other real
to
31 1956 are estimated at
$68,000,000, of which $32,000,000
fs f'or ^lect'ric pr0perty.
we
have no choice but
political problems which all businessmen must consider today
Ob-
Four
new
elected
to
Carbonic
Directors
directors
the
of
Corporation
by
directors
<
have
Board
created
new
:
been
fill
to
-Viously
Liquid
va-
resignations.
are:.Philip D.
F. S. Moseley and Co.,
New York City; W. Palmer Dixon,
&
Carl M. Loeb,
Co., New York City;
Rhoades
Boyd N.
npnf„i
Vice-President
Conti-
union
we
try to guess what the
have
leaders
their
up
dIc
•
rpjie
u
Calif.
j
The
special redemption prices run-
^
population of the territory
currently
excee<js
1,500,000,
representing
an jncrease 0f more than 50% in
ice
serve(j by the company
we
gus
T
F- Gnswold, H. W. Kochs, J. C. tomer buy our products at the
Stephens, and H. C. Wright.
prices we have in mind.
For various reasons in the past,
the answer to that question has
sometimes been "no." And we
Sam Watson Forms fo
redemption prices
ranging from 104.43% to par, and
finalfrLk^urselves this alU the five
^ iinaily asx ourselves ims a
dir^tors ^ho resigned are: James important question: Will the cusIn an
Francisco,
+
bonds will be redeem-
new
able at regular
1
HW and Daniel Koshland, the state of the world m genera .
Levi Strauss & Aiter all those facts and
igures
San
j-
to
sleeves for our next meeting. We ning from 101.43% to par, plus
a^s.° keeP 3 ct°se watch on the accrued interest in each case,
Pr!ce> quality, and service our
Long Island Lighting Co. supc?mPetitors are offering. And p^es electric and gas service in
sinc.e tke stockholders own the Nassau and Suffolk counties and
bl}s!,ness ,and„can flr® USJLf V*the contiguous Rockaway peninW1S", naturally we do the best -suja jn Queens County (New York
tnem we can. Then we reach city). More than 76% of its reve!2r
^
riS i I3 nues is derived from electric serv-
thoughtful look at both the do-
'rQC11Qi+v
the
repayment of
bank loans. Construction expend^ures for the period Sent. 1, 1955
ina^securitiesbusiness- Rations,
engage
and
to take 3 look toward Washington
,
.
Bornstein, Raymond Opens mittedly,
Co.,
In
the sub-
in the newspaper business.
and he's just not inter-
own,
investors in non-regulated indushave.
on
tions to the
has
fo^ e1ithef newspaper
that you will re¬
member that we in the steel busi¬
ness
customer
Vice-President,
would
~
Ject, 1 do hope that
back—plus
my money
cag°>
try
pr°b?T
this
of the economic advantages which
apparent desire of
b vf, ia"1Die
oeings
capapla 01 niaKing mem.
,
f
contract y°ur
nental Casualty Company, Chi- mestic and foreign markets and
>"ears sillce
the 1950 cm"
unaa(jited report for the
ended Aug. 31, 1955,
showed total reveof $83,572,000 and net income
months
12
the
company
nues
of $9,824,000.
Others in the underwriting
LITTLE ROCK, Ark.—Sam P. have had no choice but to reduce group include: Glore, Forgan &
are Primarily accounting orders, Watson is conducting a securities the price to what the customer. Co.;
Goldman,
Sachs & Co.;
^ fee*s t*13* in rate cases there is business from offices in the Hall w.°.uid Pay under competitive con- .Hemphill,
oyes
o.,
eiaaar^
Commission
reserve
serve
as
capital.
orders
to consider the
equivalent
However, if
\
some
some
there
be
name
for
substantial
A-7TTCA
u
AZUSA, Calif.
from
offices
Avoniip
y>
Harry Pon
.
^
,
Virginia,
p.,
..
Ohio
....
and
.
,.
•
is
Kentucky.
with him.
the
Azusa
Fikwnrth
dW
15
past
war
highly
that
our
Bu"
years—
conditions
inflationary
been
anH
have
prices
lower
generally
the
customers
than
(>J.
a/^"t.es_ business
at 711 North
A
the
abnormal
to
...
Bohprt
'
to
of
policies of government—I suspect
tad
Louisiana,maMaine" Michigan"' Vh-g1^' Wa"*®n w- Stautz are associated
West
A1
most
and
(Special to The Financial Chronicle)
as
wh^^t^omeUmes
of Sam
Harry Pon Opens
com-
companies intend
will
under the
Company.
due
•
the tax saving into net income,
apparently
*
0
cost-free
to
i_
Watson
re-
pames are g01ng to bnng down
do,
TmmT
which
deduction from the
a
or
•
to
T
tax Building
as
rate base-
,
the^ax^
any-
the
trate the purpose of Congress and
would deprive the utility investor
reason
that in
me
from
Everett
=mejh°d generally did not ™
describe
think
I
check
a very unfortunate result, since it would frus-
these
that they were going to
reduc-
a
service.
of
S
im¬
h
which, of course is not at all.
.
B. J. Stein Co. Formed
that this would be
but
indicated
company
preferred
cost
cost
Then the third
the
price °f service. we J.08e 3 CAUS;
tomer to our competitors. And
previously with Coombs
Company.
partner,
in
won't
expense ac-
*ested in hearinS ours. All he is
...
p' interested in hearing from us is .' W
Jr
our askin& Price for the steel he ,
were
and
immediately reflected in
tion
an
Boyle
Norman
H.
his
I
E
niBhii
tke fac*of tke matter 18 ^ u- S.
Lanslev & Co
and asso,Steel doesnt enJ°y losmg cua" ciates are offering $15 OCO OOO of
f?I?ers any m°re. than y,ou pub" L(m2 Iriand Lighting Co 3%%
lishers enjoy losing customers— Hong lslai^ ^Hignting bo._ J/gA
One
both
on
man
Our
Calif
Billy
aiR
®
me
Publishers or steelmakers. And in
it
bill, I'll get
10%!""
Shelley Roberts &
Co., 9486 Santa Monica Boulevard.
treatments reflect the fundamental fact that it is a tax deferral,
the
of
that
cost
J.1/. ' bberty, and prop-
sec-
ond
01-
Crockett,
Some
indicated
protecting
? ??e
ex-
and carried the day with
this announcement: "I'm a manuthis announcement: "I'm a manu-
and
grabbed
joined
In other words, it is a tax reduction and, accordingly, it should be
companies
Hi"'
competitive marj
W^in^Ve^mGf confined
free and
a
have
The
permanent saving.
.
he wants it. If he doesn't like
cancies
restricted
,
wants-delivered when and where
^
are
a
.
McGraw, Richard MurM
Pyke
Jack
Ralph, Joseph Simpson Jr.', Robt.
D. Swanger and Joseph B. Tipton
deferral, but
in
or
HILLS
Courtnev
Dudley
attempting to show
that the tax deferral is not a tax
account
.
,°' tbere you have a fev of the
^ac^s and ld®38 which all busifessmen must face on this problem of Pnces- li 18 not 3 simple
a*
Charles
ral
reserve
,
Robert'J.
regulators
a
.
taugh
Some companies were undecided
between recording the tax deferin
business
actually
salesman
a
'
ou&inew* 11 om
Ulects
that most' of you are
with the fact that some
sure
is
business
Bern's
account,
reserve
a
Schmidt
C.
Greene
«
the
C.
BEVERLY
A few
days later, in connection with
approved
Office
Utnce
(Special to The Financial Chronicle)
or-
the application, which was based
on the
theory that the tax deferral
would
will
it
pense,
Shelley, Roberts Adds
^counting methods to
dfferr,a 41? "
in Ohio
reserye
,
deduct this for
a
a|. 19 Rector street' New facturer with a cost-plusI
from the government, If l
government. it
irving
least
as
York Clty•
have
at
Onens
upens
securities
a
d
...
is no unfavorable
rpgnprt tn this matter
respect to this matter
been
can
purposes
count
ScPmidl
ocriimar
by the various regulatory bodies,
I think you might also like to
be brought up-to-date quickly on
this problem as it is being handied by regulatory agencies. There
Th! Kentucky eX ™ •SOUree' other
Kentucky Comm,ss,n„
The viTJ"1 Commission
dered
there
n ft inn
action with
with
the
^ Xn
tion: "Since I
r\
I'm
Henry
most im-
orobablv
and
l
rec-
keeping procedures;
t
•
present costly
where
reason
deferral
to
as
p*
A. R. Rich Opens
of the
not so
are
re-
reserve
a
second
that the tax
funds
arduous
P
City.
regulations
into a
competitive
and
condi-
Alfred R. Rich is conducting a only about 20% of the total." But
securities business from offices at the second man grabbed it from £
of 5 Tudor City Place, New York him and said: "Let me pay it since <ar|
adoption
in
account,
applied against cash
be
the
discussed
free
dfbusiness
tax
-
A
justify
normal
reached for it with this explana-
334 East Avenue.
+^X
'
estmg situation developed
two:
were
That
un-
or
re
re-
deferral
surplus
Revenue
for
tor
reasons
reasons
the possibility that if the deferral
were
Third,
portant,
rapid
account
reserve
a
1954
repealed
accelerated depreciation;
-
believe
through
amortization
corded in
coun
n
bulletin
a
that
deferral
.
to
have
the
_
Second, the companies' forecasts
plant additions, as well
as
1954 and 1955 additions, are
sufficient
In
ROCHESTER, N. Y-William met in war-time Washington and
0f future
it
point that
at this
might add
be
*de?s. J-
definhion.
a
che^k
the
0f
to
perhaps
is "The Perfect Price,
I had better combine the various
,
favorably amended;
ord
outstanding investment
seling
feature
Q0cje
is
Now since the title of this talk
•
.j.
,
suggestion of Treasury Department
countants.
an
.
Under
in
JA^thl
not in
was
have
we
survey
sifr- form of aecelerated depreciation
Dart of
a
of
results
effort
bargain,
a
market whlch characterizes our
Rauch Funding Opens
competitive market economy-except, of course, when
where
a
man
has
freedom
of
? government interferes
(Special to The Financial Chronicle)
n
choice, the customer would laugh Pnce ls Perfect when the pror
BROOKLYN, N. Y.
,Rauth in our faces if we went to him ducer would rather have the
Funding Co., Inc. is engaging in
ith
nroblems and sueeested
money
than the product, and
a securities^business from offices
we
on afraight J^n the consumer would rather
at 26 Court Street.
cost-plus basis.
If
we
did, he bave tke Product than the money.
#
would probably tell us the old
v. perf^ct
P*lce 18 established
W. H. Reinholz Opens
story of the three friends who when. the seller and tne buyer
tions
Prospects of Accelerated
re¬
were:
this method
an
The
by
a
thought and
customer.
Account
Thursday, October 27, 1955
.
regulators.
observation
use
.
buppui t
some
sonally feel that utility companies
Utility Survey of
Accelerated Depreciation
.
Pain^',
Se^uriUes
Corn ;
& Curtis; Rey& Co.; and
Tucker, Anthony & Co.
EqutoWe
Webber, Jackson
nolds
&
Co.;
Shields
-
Form Services In v. Co.
,
were competitively
willing to pay.
FT.
WORTH,
Texas
—
Services
And if at all possible, we would. Investment
to keep our prices below
maximum the customer might
prefer
be wiHing to
pay.
That is only
good business, because as long as
Co. has been formed
with offices at 4813 Bryce Street
to engage in
a
securities business,
Partners are Samuel M. Connell
and D. C. Connell.
olume 182
ontinued
Number 5476
from
.
The Commercial and Financial Chronicle
.
page 5
(1783)
Wholesale Food Price Index Dips to Lowest Level Since
j.
•.
>
,
u-vrrt- j
*
Outbreak, of
-
With
Koijp^jWar^
Persistent weakness in foodstuffs caused
further lowering
price index, compiled by Dun & Bradstreet,
Inc. The index fell to $6.08 on Oct. 18, from $6.11 the week
before,
^bringing the current level to the lowest for over five years, or
a
of the wholesale food
all-time high fbr. the
new
the
*
period
corresponding 1954 period,
and compared
with, 85>596 in
increase of 25.3%.
or an
,
since June 27, 1950, at the start of the Korean War, when it stood
at $6.04.
r ..
.
Steel Production Set the Current Week at
98.2% of
,
^
Moving upward in price the past week
lard, cocoa,
in wholesale cost were flour, wheat,
corn, rye, oats, barley, hams, butter, cottonseed oil, beans, peas,
eggs and hogs.
Capacity
steers
Steel prices will go up next
year, probably in midyear,"*'SteeI"
magazine' forecast on Monday of this week'. - Steel received before
txien will be better than money in the
bank, the publication added.
Price
increases, it noted, will stem from steel workers-^union
contracts-and funds for expansion. A new labor contract will cost
lambs.
arid
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its cnief function
is to show the general trend of food prices at the wholesale level.
*
To help pay for
it, higher prices will be necessary. To get
funds for expansion and for
replacement of equipment as-it be¬
comes obsolete or
worn out, the steel industry must make itself
KEY
Street.
attractive, as a place for investment. One of
price structure, continues this trade journal.
the ways
is tnrougn
aim
in tee first half
users
of next year to
beat the price hike. Steel
have been inclined to build inventories this year but have
not made much
finished
steel
headway.
and with 276.08
They added only 1,900,000 net tons of
in the first eight months of 1955—
Only a week's supply at tae current rate of usage.
With'high consumption, consumers need a good supply of
material on hand and are inclined to buy all they can get, this
trade weekly oeclares. Consumption is expected to continue high
in the first naif. The automobile industry is optimistic; the*heavy
construction industry is continuing strong and tee railroad industry
(Special to The Financial Chronicle)
ATLANTA, Ga.
The forecast for
same
a
was at 97% of capacity,
point below the preceding week.
The
American
Iron
Steel
and
,
,
„
*
thateHie^
announced
operating rate of steel companies having 96.1% of the steelmaking
Capacity of the entire industry will be at an average of 98.2% of
capacity for the week beginning. Oct. 24, 1955, equivalent to
2,370,000 tons of ingots and steel for castings as compared with
98.9% of eapacity and 2,386,000,tons (revised)
the like week
duction 2,341.000 tons.
placed
was
at
a
L.
A
year
1,776,000 tons
comparable because
ago
capacity
was
The percentage figures for 1954
124,330,410 torts
as
97.0% and
based
on
annual capacity of
This
week's
Week
'
•
5% over
on
a
market
cocoa
developed
a
stronger
tone,
roasters
reflecting
a
107,800,
as
compared with 99,000 £ week previous, and 82,500
a
Spot cotton prices worked moderately higher a week ago in
moderately active trading. Early in the week the market was
considerable selling pressure following the official crop
forecast indicating larger increases than had been generally ex¬
pected. Support in late dealings was attracted by expectations
that a large proportion of current ginnings is headed for the CCC
1953.
With H. M.
Loadings Turn Upward in Latest Week Registering
Gain of 2.5% Over Prior Week
a
Loadings of revenue freight for the week ended Oct. 15, 1955,
Increased 20,210 cars or 2.5% above tee preceding week,- according
to the Association of American Railroads.
i
ah
:
:
J
loan program with a consequent tightening of free supplies later
on.
Loan entries of 1955 crop cotton in the week ended Oct. 7
increased
to 174,800 bales, frorri 138,100 the previous week. Re¬
sales in the 14 markets were reported at 267,100 bales,
comparing with 253,500 bales the week before, and 440,000 in the
corresponding week a year ago.
_
Leadings tor the week ended Oct. 15,1955, totaled 827,245 cars,
increase of 105,909 cars, or 14,7% above the corresponding 1954
CHICAGO, 111.—David E. Simp¬
has become associated with
son
Byllesby and Company, In¬
corporated, J 35 South La Salle
Street, members of the Midwest
Stock Exchange. Mr. Simpson was
formerly with the Northern Trust
H. M.
Company.
E. F. Hutton Adds
(Special to The Financial Chronicle)
CHICAGO, 111.—John A. Naples
been added to the staff of
F. Hutton & Company, Board
has
E.
of
'
'
U.
S.
cars,
or
0.6%
above the
'
;
Joins Talcott,
a
v
'
•
corre¬
Trade Volume
'
Advanced Sharply in Latest Week
Gain of 30% Above the Level of the
Preceding Period
Spurred by Consumer Interest in Fall and
Moderately Over 1954 Level
Although bad weather reduced retail volume in some Eastern
retail trade gained moderately
over last year's level.
Considerable consumer interest was main¬
tained in Fall and Winter merchandise.
There
was
good consumer response to reduced-price automo¬
bile promotions of 1955 models.
The
dollar
volume
of
retail
trade
in the
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1954 levels by the following
percentages: New England —3 to +1; East —2 to +2; South -f-3
to
+7; Mid die west +4 to +8; Northwest +1 to -f-5; Southwest
+5 to -f-9 and the Pacific Coast +2 to -j-6%.
failures
climbed
to
239
in
the
week ended Oct. 20 from 203 in the preceding week, Dun & Bradstreet, Inc., reports. At the highest level since the week ended
March 10, failures exceeded the 229 a year ago and the 185 in 1953.
However, the
toll
continued
14%
below
the
prewar
level
of
Women snoppers
There
was
a
DENVER, Colo.
Among failures with liabilities of $5,000 or more, there was
i?n upturn to 208 from 176 last week and 182 a year ago. Small
jfailures, with liabilities under $5,(L0, rose to 33 from 27, but did
not reach their toll of 47 in the comparable week""Df 1954. Twentyone
businesses
failed
with
with
Chronicle)
—
Richard W.
Hughes and Hyman P. Silverman
have joined the staff of Shaiman
and
Company,
First National
Bank Building.
With
Skyline Sees*
Chronicle)
(Special to The Financial
Colo.—Darrell F.
is now with Skyline Se¬
Incorporated, 1719 Wei-
DENVER,
Shields
curities
ton Street.
With State Bond & Mtg.
(Special to The Financial Chronicle)
NEW- ULM,
Minn,—Donald W.
liabilities
in
(excess
jof
$100,000,
as
is now with
State Bond
North Mhw
Current
nesota Street.
With Security Planning
(Special to The Financial
increase
in wholesale orders
period last
year.
In the preceding
8, 1955, a rise of 6% was registered above that of the
similar period of 1954, while for the four weeks ended Oct. 15,
1955, an increase of 8% was reported. For the period Jan. 1, 1955
to Oct. 15, 1955, a gain of 7% was registered above that of 1954.
Retail trade volume in New York City the past week regis¬
tered
the
a
slight gain over that for the similar period a year ago.
week
preceding, sales volume declined
In
1% below the 1954
level.
to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Oct. 15,
In the
preceding week, Oct. 8, 1955, no change (revised) was recorded.
For the four weeks ending Oct. 15, 1955, an increase of 1% oc¬
curred. For the period Jan. 1, 1955 to Oct. 15, 1955, the index
recorded a rise of 2% from that of the corresponding period of 1954.
1955, rose 2% above that of the like period of last year.
PALM
With Merrill Lynch
(Special tp The Financial
Chronicle)
CHICAGO, 111. — William A.
Patterson, Jr. is now with Merrill
Lynch, Pierce, Fenner & Beane,
Board of Trade Building.
Joins C. F. Childs
in the
week, Oct.
Chronicle)
BEACH, Fla. —
Paul J. Kblly and James M. Sul¬
livan are with Security Planning,
Inc., Harvey Building.
WEST
increased their purchases of cloth coats and
moderate
previous week. The dollar volume was noticeably higher than that
of the coinparable 1954 week. In preparation for Christmas sales
promotions, many gift and apparel retailers increased their stocks.
Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Oct. 15,
I According
1939.
against 17 in tee previous week.
was
Two With Shaiman
dresses.
1955. advanced 8% from the like
Point Since the Week
Ended March 10
277 in
years
(Special to The Financial
period ending on
"
Business Failures Rise to Highest
industrial
many
W. C. Gibson & Co.
Wednesday of last week was 2 to 6% higher than a year ago,
434 trucks.
and
for
mire
business centers, last week's total
Oct. 21
1955, according to "Ward's Automotive Reports," rose
sharply above that of the week preceding by 30% as the whole
industry b. came engaged in 1956 model assembly.
Last week the industry assembled an estimated 131,952 cars,
compared with 101,581 (revised) in the previous week. The past
Week s production total of cars and trucks amounted to 158,877
units, cr an increase above t.ie preceding week's output of 32,711
units, states "Ward's."
'
Last week's car output advanced above that of the previous
week by 30,371 cars, while truck output increased by 2,340 vehicles
during the week. In the corresponding week last year 45,649 cars
and 13,653 trucks were assembled.
Last week the agency reported there were 26,925 trucks made
in the United States. This compared with 24,585 in the previous
week and 13,653 a year ago.
Canadian output last week was placed at 6,175 cars and 824
trucks.
In the previous week Dominion plants built 3,947 cars
and 665 trucks, and for the comparable 1954 week, 2,640 cars and
Commercial
Chronicle)
CHICAGO, 111. — Russell G.
L,ongmire has become associated
with Talcott; Potter & Co., 231
South La Salle Street. Mr, Long-
Winter Goods Rose
Output in the automotive industry for the latest week, ended
,
Potter
(Special to The Financial
ported
Car Output
Registering
Trading Building.
and Mortgage Co., 28
week, and an increase of 4,663
sponding week in 1953.
*
Byllesby
(Special to The Financial Chronicle)
Under
Car
Northeast.
Beane, 23 Pryor Street,
earlier.
year
kwh.; it increased 1,611,000,000 kwh., or 17.9% above the com¬
parable 1954 week and 2,336,000,000 kwh. over the like week
Lynch, Pierce, Fenner &
Merrill
and
Receipts of swine at 12 major terminals last week numbered
that of
Chrqni<!!Le)
ATLANTA, Ga. — Frances
Thomason has joined the staff of
routine
sharply, reflecting improved domestic demand which met with
light offerings. Hog values, however, dripped to new low levels
since 1946 under continued heavy marketings.
the previous week, when the actual output stood at 10,599,000,000
in
gain of
have
Merrill Lynch Adds
importers entered the market following an¬
nouncement that no changes in Brazil's coffee or financial policy
would be riiade at least until riext January. Lard prices advanced
as
>
,
output increased 45,000,000 kwh. above
a
.
than
end
The amount of electric energy
<
.
increased to 221,756 bags, from 218,065 a week ago, and
compared with 104,857 a year ago.
Green coffee prices developed marked firmness at the week¬
distributed by the electric light
and power industry for the week ended Saturday, Oct. 22, 1955,
Was1 estimated
at 10,644,0C0,000 kwh., according to the Edison
«
previous, but represented
cocoa
of Jan. 1, 1954.
Electric Institute.
month
firmer London market, a rising trend in producer prices, and a
better United States manufacturer interest. Warehouse stocks of
The operating rate is not
than eapacity in 1955.
Electric Output Trends Upward in Latest
•
pro¬
lower
are
a
The
the actual weekly production
74.5%.
or
about the
Ryan
joined the staff of Franklin Securities Co., 57 Forsythe St., N. W,
basis with prices holding in a narrow range and offering no in¬
ducement to bakers and jobbers to add to balances.
.
month ago the rate was
was
Trading in hard wheat bakery flours continued
a week ago.
The industry's ingot production rate for the weeks in 1955 is
based on annual capacity of 125,828,310 tons as of Jan. 1, 1955.
For
3,118,000,000 bushels,
soybean crop was estimated at 375,000,000 bushels, 3%
Sept. 1, but 9% greater than last year's record crop.
Wheat, rye and oats were easier in sympathy with corn and soy¬
beans. The condition of the newly seeded Winter wheat crop in
■the, Southwest was considered about normal with weather conditions good. Purchases of grain and soybean futures on the Chicago
Board of Trade last week fell to a daily average of 46,500,000
bushels, from 52,600,000 the week before, and compared with
46,300,000 a year ago.
less
*
Institute
at
The
fluctuation of only
a
as
last year.
>
ingots and castings
corn
Lloyd H.
—
Dennis
and
Duke
the corresponding date last year.
"
Meanwhile, the steel mills are producing at near capacity to
satisfy demand. In the week ended Oct. 16, output of steel for
half
on
Trading in leading grain markets slackened the past week
with demand limited and prices generally working lower.
Both
corn and soybeans declined rather sharply following the issuance
of the October government crop report early last Week.
td inventories
has re-entered the steel market.
Leading Grain Markets
with
DuVal
.
(Special to The Financial
The general commodity price level turned downward last week
following the stability shown the week before. The daily wholesale
commodity price index, compiled by Dun & Bradstreet, Inc., fin¬
ished at 276.00 on Oct. 18, contrasting with 278.32 a week earlier,
metalworking weekly said inventory building will be the
*.
Demand Slackened in
•
TWo With Franklin Sec*.
Wholesale Commodity Price Index Moved Moderately
as
1
Fla.^-S. Candler
Oppe?nheihier & Co., 613
more.
Lower
SlnancIal Chronica*) ^
WEST,
Dobbs has become associated
were
Lower
Oppenheimer & Co*
(8pecial-to Kn
-
35
(Special1 to The Financial Chronicle)
BOSTON, Mass.
—
Timothy J.
Curtin has been added to the staff
of
C.
F.
Congress
Childs
&
Company,
35
St.
Three With Merrill
Lynch
(Special to The Financial Chronicle)
ANGELES, Calif.—Robert
Scott, and Al¬
fred G. Smith have become affili¬
ated with Merrill Lynch, Pierce,
Fenner & Beane, 523 West Shtth
Street. Mr. Smith was previously
with Daniel D. Weston & Co.
LOS
L. Coate, Robert B.
Joins E. R. Bell Co.
(Special to The Financial
Chronicle)
CITY, Mo. —Marion
F. Smith is now with E. R. Bell
KANSAS
Co., 4627 Wornall Road.
The Commercial and Financial Chronicle
(1784)
33
.
..
Thursday, October 27, 1955
* INDICATES
Securities Now in Registration
.
Uranium & Oil Corp.
of notification) 15,000,000 shares of com¬
Academy
stock. Price—At par (one cent per share). Proceeds
mon
—For
Office—65 East Fourth South
mining operations.
St, Salt Lake City, Utah.
Investment Co., same city.
Aeco
Corp.,
Underwriters—Western States
Beverly Hills,
Calif.
plied by amendment. Proceeds—To repay borrowings;
for exploration and development of oil and gas prop¬
erties and further acquisitions. Underwriter—None, of¬
made
on
a
"direct communication" basis
Industries, Inc., Houston, Texas
(letter of notification) 200,000 shares of com¬
(par one cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for working
Allied Industrial
Development Corp.
(letter of notification) 300,060 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
end gas operations. Office—1508 Capitol Ave., Houston,
Tex. Underwriter — Paul C. Ferguson & Co., same ad¬
June 20
dress.
Allied-Mission Oil, Inc., Tulsa, Okla.
(letter of notification)
598,800 shares of common
cents per share. Proceeds
drilling and development
of leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.
stock (par one cent). Price—50
—For acquisition, exploration,
Allray Co., Ouray, Colo.
(letter of notification) 139,760 shares of common
(par $1). Price—$2 per share. Proceeds—For ex¬
penses incident
to mining activities. Underwriter —
Dwight L. Sloan, P. O. Box 774, Alliance, Neb.
•fc
Nev.
June 27 (letter of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
tihare of each class of stock. Price—$11 per unit. Pro¬
ceeds—For working capital, etc.
Office—206 No. Vir¬
ginia St., Reno, Nev. Underwriter—Senderman &' Co.,
Allstates Credit Corp., Reno,
tame
address.
Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
offered in units of
one
share of each class of stock. Price
—$11 per unit. Proceeds—For construction of hotel and
related activities
and
and for
contingencies, stock in trade,
working capital. Underwriter—None.
Alouette Uranium & Copper
Mines, Inc.,
Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of common stock.
Price—30 cents per share. Proceeds—For exploration and
development expenses, etc. Underwriter—Hudson-Bergen
Securities, Inc., Cliffside Park, N. J.
Amarilla
Uranium, Inc.
July 27 (letter of notification) 6,500,000 shares of
mon
stock.
Price—One
cent
share.
expenses incident to mining activities.
Weber Investment Co., Ogden, Utah.
per
com¬
American
European Securities Co. (11/1)
91,875 shares of common stock (no par)
be offered for subscription by stockholders on the
Oct.
to
11
basis of
filed
one
new
Oct. 31, 1955;
share for each four shares held
rights to expire
on
Nov. 22.
as
of
Price—To be
10
holders
capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,
Corp.
Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To set
up a factory and purchase equipment and machinery for
manufacture and sale of the "grip-lock" driver and
screw.
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
N. Y.
Automobile
Banking Corp. (11/1)
$1,500,000 5*/fe% capital convertible deben¬
tures due Nov. 1, 1970. Price—At 100% and accrued in¬
terest. Proceeds—To repay bank loans and for working
capital. Underwriter—Reynolds & Co., New York.
Oct.
6 filed
Natural
Basin
Gas
Corp., Aztec, N. Mex.
i
Sept. 19 (letter of notification) 750,000 shares of com¬
mon stock (par five cents).
Price—40 cents per share.
Proceeds—For expenses incident to oil and gas activities.
Office—109 W. Caco St., Aztec, N. M,
UnderwriterColumbia Securities Corp., New York, N. Y.
Bassons Industries Corp.
Aug. 24 (letter of notification) 124,000 shares of com¬
mon stock (par 50 cents). Price—$2 per share. Proceeds
—For working capital, etc. Office*— 1424 East Farms
Road, New York City. Underwriter—Jay W. Kaufmann
& Co., New York.
•
share. Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.
per
Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of com¬
mon stock. Price—15 cents per share. Proceeds—For ex¬
penses incident to mining activities.
Cranmer & Co., Denver, Colo.
Underwriter
—
Big Ridge Uranium Corp., Reno, Nev.
(letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St., Reno, Nev. Underwriter—Mid
America Securities, Inc., Salt Lake City, Utah.
Black Panther Uranium Co., Oklahoma City, Okla.
July 12 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—
Porter, Stacy
& Co., Houston,
Tex., on "best efforts
—None.
★ Applied Science Corp. of Princeton
Oct. 24 (letter of notification) 16,250 shares of common
Stock (par $2). Price—$12 per share. Proceeds—For ex¬
pansion and working capital. Address—O. Box 44,
Princeton, N. J. Underwriter—None.
'
,
Arizona
Public
Finance
Co.,
Sept. .16 filed 78,006,081 shares of
offered
Phoenix,^ Ariz.
common
stock to be
for
Brooklyn Towers, Inc.
Oct. 6 (letter of notification) 18,949 shares of common
stock (par $1) being offered for subscription by holders
of
voting
Towers
share held
certificates representing stock of the
Corp. on a basis of one share for each
trust
Hotel
as
of Oct. 6
lege); rights to expire
(with an oversubscription privi¬
Oct. 31. Price—$7.50 per share.
on
Proceeds*— For lease of Brooklyn Towers Hotel and
working capital. Office—Clark and Willow Sts., Brook¬
lyn, N. Y. Underwriter—None.
iC&D Batteries, Inc.
Oct.
18
(letter of notification) 20,000 shares of common
$l),to-be offered for.subscription by stock¬
stock (par
holders and others
on a deferred payment plan.
Price—
share to stockholders; $13.50 to others. Pro¬
ceeds—To acquire plant equipment and facilities; and
to reduce existing bank loans and current liabilities. Of¬
fice—Washingtoin. and Cherry Sts., Conshohocken, Pa.
$12.50
per
Underwriter—None.
California
Consumers
Corp., Los Angeles, Calif.
the basis of
one new
share for each share held.
writers—J. S. Strauss & Co. and Lawson,
California
$5).
re¬
Underwriters—The First Boston Corp.
.and Blyth & Co., Inc., both
pf New York.
each
5.7
Ltd., Montreal, Canada
June 3
(regulation "D") 2,000,000 shares of common
•tock (par one cent). Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N, J.
Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc. Underwriter—Mountain States Securities, Inc., Den¬
ver,
Colo.
Cedar Springs Uranium Co., Moab, Utah
June 8 (letter of notification) 300,000 shares of common
stock (par five cents).
For mining expenses.
Price—$1 per share. Proceeds—
Underwriters-Universal Invests
Corp., Washington, D. C.
ment
-A* Central Electric & Gas Co. (11/9)
shares of 4.75% cumulative preferred
stock, series B (par $50). Price — To be supplied by
amendment (proposed maximum offering price is $51).
Proceeds—Together with funds from sale of $1,750,000
additional first mortgage sinking fund bonds, to be used
to repay bank loans, for construction expenditures, for
temporary advances to subsidiaries, and for other cor¬
porate purposes. Underwriters—Paine, Webber, Jackson
& Curtis'and Stone & Webster Securities Corp., both of
Oct. 19 filed 35,000
Chaffin Uranium Corp., Salt Lake City,; Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock. Price—At par (one cent per
share). Proceeds— For expenses incident to mining
activities. Office—810 Deseret Building, Salt Lake City,
Utah. Underwriter—Utah Securities Co., same City, „
•
Channel Oil
Oct.
18
Co., Las Vegas, Nev.
(by amendment) 435,000 shares
filed
of $1.20
cumulative preferred stock (callable at $20 per share)
and 870,000 shares of common stock (par 10 cents) to
be offered in units of
two
shares
Proceeds
of
—
one
For
share of preferred
stock.
common
production
Underwriters—First
California
Price—$20.20
stock and
per unit.
payments.
of production
Co., Inc., San Francisco,
Calif.; and Blair & Co., Incorporated, New York. Change
Name—Formerly Continental Production Corp. (see
below). Offering—Date Indefinite.
of
^ Charge Buying Service, Inc..,
(letter of notification) 300,000 shares of class A
stock (par 25 cents) and 60,000 class warrants
to be offered in units of five shares of class A stock and
Oct. 17
common
one
warrant
one
(warrant holders will be entitled to pur¬
class A share at 62Y2 cents per share). Price—
unit. Proceeds—For working capital and to
expansion and liquidate notes and liabili¬
ties. Office—522 Felt Bldg., Salt Lake City, Utah. Under¬
$2.50 per
meet current
writer—Cayias, Larson, Glaser & Emery, Inc., same city.
Charleston Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock; class-A-~(p3r 50 cents) and 60,0OQ
shares of voting common stock, class B (par 10 cents)
to be offered in units of two class A and one class B
share.
Price—$5 per unit.
Proceeds—For general work¬
ing capital. Office—505 National Bank of Commerce
Building, Charleston, W. Va.
Underwriter—Crichton
Investment Co., same address.
(10/31-11/4)
Chromalloy Corp.
(letter of notification) 133,100 shares of com¬
mon stock (par 10 cents).
Price—$2.25 per share. Pro¬
ceeds—For equipment, working capital, etc. Office—109
West 64th St., New York 23, N. Y. Underwriter—S. D,
Fuller & Co., New York.
Sept. 29
Cisco Uranium Corp.,
Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of
stock (par one cent).
Price—Three cents per
capital
share.
mining expenses, etc. Office—2630 South
2nd West, Salt Lake City, Utah.
Underwriter—Denver
Securities, Inc., Denver, Colo.
Proceeds—For
Citizens Credit Corp.,
Levy and Wil¬
Washington, D.. C.
capital to subsidiaries.
Oct.
Electric Power Co.
4
(letter of notification) 1,066 shares of common
$1). Price—At market (estimated at $14 per
share). Proceeds—To Mono Power Co. Underwriter—
stock (par
Waggeriseller & Durst, Inc., Los Angeles, Calif.
Office—1028 Connecticut Ave.,
Underwriter—Emory S. War¬
N. W., Washington, D. C.
ren & Co., same address.
Clad
duce bank loans.
for
2,450 shares of class A common and 490 shares of class
B common stock).
Price—99%. Proceeds—To supply
on
liams, both of San Francisco, Calif.
Oct. 25 filed 260,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds—to
share
Oct. 18
salesman of the insurance firm.
(11/16)
new
Sept. 27 (letter of notification) $245,000 of 6% subordi¬
nated debentures due 1975 (with warrants to purchase
Price—$15 per share. Proceeds—From sale of stock, to¬
gether with other funds, to be used for payment of 5%
sinking fund mortgage bonds due Dec. 1, 1955. Under¬
Public Service Co.
one
Sept. 21 filed 52,942 shares of capital stock (par $10)
to be offered for subscription by stockholders of record
subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
* Arizona
of
writer—None.
chase
—
stock for each preferred share.
Sept. 30 filed 200,000 shares of capital stock (par $3) to
be offered for Subscription by stockholders of record
Oct. 25, 1955, on the basis of one new share for each five
shares held. Price—$8 per share. Proceeds—For
general
corporate purposes. Office—Chicago, 111. Underwriter
basis
rights to expire on Nov. 5, 1955. Price—
$1.05 per share. Proceeds—For mining expenses. Office
—139 C. Beverly Drive, Beverly Hills, Calif.
Under¬
New York.
Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents
Blenwood Mining & Uranium Corp., Denver, Colo.
July 29 (letter of notification) 1,000,000 shares of cornmom stock (par 10 cents).
Price — 30 cents per share.
Proceeds
For expenses incident to mining operations.
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
American Motorists Insurance Co.
on
Canadian Uranium Mines,
Automatic Tool
American Hide & Leather Co., Lowell, Mass.
Sept. 28 filed $2,426,500 of its 5% convertible subordinate
debentures due Oct. 1, 1975 and 609,193 shares of com¬
mon stock
(par $1) to be offered in exchange for out¬
standing 48,530 shares of 6% cumulative preferred stock
on
the basis of $50 of debentures and 2^4 shares of
American Investment Development
Corp.
Sept. 30 (letter of notification) $50,000 of mortgage fund
collateral notes, to be offered in units from $100 to
$2,500. Price—At par. Proceeds—For expenses incident
to real estate activities. Office—55
Taylor Run Parkway,
Alexandria, Va. Underwriter—None.
the
shares held;
basis."
The remaining
500,000 shares are under option to certain persons at $4
per share.
Underwriter—None.
7
stock
supplied by amendment.
Proceeds — For investment.
Underwriter—Dominick & Dominick, New York.
common
Limestone Products, Inc.
(letter of-notification) 36,850 shares of common
stock (par $1) to be offered for subscription by stock¬
California
mon
Oct. 19
Proceeds—For
Underwriter—
ISSUE
ir Ca'ifornia-Engeles Mining Co. 6 (letter of notification) 42,486; shares of s common
stock (previously sold). Price — At par (25 cents per
share). Proceeds—For mining development. Office—400
Montgomery St., San Francisco, Calif. Underwriter—
Verner Allen, 156 Montgomery St., San Francisco, Calif.
Oct.
Oct. 13
stock
REVISED
Oct.
Oct.
Atlas
•
PREVIOUS
ITEMS
•
Texas.
by brokers.
Oct. 3
'
None.
Sept. 19 filed 1,245,000 shares of common stock (par 10
cents) to be offered for subscription by common stock¬
holders on a share-for-share basis. Price—To be sup¬
fering to be
Assateague Island Bridge Corp. (Md.)
7 filed 100,000 shares of 5% cumulative preferred
stock to be offered primarily to members of the Ocean
Beach Club, Inc. Price—At par ($10 per share). Proceeds—For construction of bridge across Sinepuxent Bay
from the Worcester County (Md.) mainland to Assa¬
teague Island. Office—Washington, D. C. Underwriter—
Oct.
June 10 (letter
ADDITIONS
SINCE
(Victor V.)
June 17 (letter of
Co., Philadelphia, Pa.
notification) 120,000 shares of common
stock (par 25 cents).
Price—$2.50
For equipment and workmg
rett Herrick &
per
share. Proceeds—
capital. Underwriter—Bar¬
Co., Inc., New York.
Number 5476
182
Volume
Clad-Rex Steel
.
.
Colo.; and Joseph McManus & Co., New York, N. Y.
(11/16)
Uranium, Inc.
cent). Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpo¬
Office—Montrose, Colo. Underwriters—
General Investing Corp., New York; and Shaiman & Co.,
purposes.
Denver, Colo.
*
Calif.
Oct. 6 (letter of notification) 28,500 shares of common
stock (par $1).
Price—At market (estimated at $1,75
per share).
Proceeds—To Benjamin B. Smith, the sell¬
ing stockholder. Underwriter—Francis I. duPont & Co.,
Color Corp. of America, Los Angeles,
Los Angeles,
Oct. 13 filed
to
offered
be
Calif.
Colorado Oil & Uranuim Corp.
(11/2)
1,110,375 shares of common ^stock (par $25),
for
subscription by common stockholders
basis of one new share for
expire on Nov. 16. Price—
To be supplied by amendment (proposed maximum of¬
fering price per unit is $45 per share). Proceeds—For
of record Nov. 1, 1955 on the
each 15 shares held; rights to
construction
April 21 filed 2,500,000 shares of common stock (par one
rate
Edison Co.
Commonwealth
Co., Denver, Colo.
Aug. 24 filed 400,000 shares of common stock (par 10
cents).
Price—$1.25 per share.
Proceeds—To repay
short-term obligations, etc. and for working capital.
Underwriter — Mountain States Securities Co., Denver,
Colohoma
(1785)
The Commercial and Financial Chronicle
.
Underwriters—The First Boston
Corp. and Glore, Forgan & Co., both of New York.
•
program.
Life
Commonwealth
Insurance
Co.
derwriter—Eastman, Dillon & Co., New York, N. Y.
Community Credit Co., Omaha, Neh.
6
(letter of notification) 1,000 shares of 5%%
cumulative preferred stock.
Price—At par ($100 per
share).
Proceeds—For working capital.
Office—3023
Farnam St., Omaha, Neb. Underwriter—Wachob-Bender
city.
Corp.,
stock
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
f.Aock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326 Wiggett Bldg.,
Underwriter—Birkenmayer & Co.,
Bldg., Denver, Colo.
same city.
(letter of notification) 700,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual
Aug. 20
Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
Bldg., Washington 4, D. C.
<
Mines, Inc.,
Uranium
Commercial
stock (par one
shares of com¬
Proceeds—For
Underwriter
Grand
incident to mining operations.
expenses
Vista
Office—170
Price—Two cents per share.
cent).
Co.,
Securities
Columbia
—
Junction,
Grand
Road,
Grand
Denver
Colo.
and
Junction, Colo.
of capital stock (par $1).
Sept. 9 filed 700,000 shares
Price—$2
Phoenix, Ariz.
Credit Corp.,
Commonwealth
share. Proceeds—For working capital, etc.
per
Underwriter—None.
Oct.
•
Air
Continental
Oct.
12 filed
bentures
due
Underwriter—M. A. Cleek, Spo¬
Lines,
Production
Corp.
Aug. 29 filed $8,700,000 of 15-year 5^2% income de¬
bentures due Sept. 1, 1970 and 870,000 shares of common
stock (par 10 cents) to be offered in units of $50 of
debentures
unit.
stock.
shares of
five
and
Price—$50.50
per
Proceeds—For
acquisition of production payments.
Office—Las Vegas, Nev.
Underwriter—First California
Co., Inc., San Francisco, Calif. Statement Amended and
Name Changed—See Channel Oil Co. above.
Cook Industries,
ISSUE
Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold
by company and 92,084 shares by a selling stockholder.
122,200 shares of common stock
on
as
of record
Price—$70
Nov.
per
Allyn
C.
(A.
Common
writer—Blyth & Co., Inc., New York.
Cordillera Mining Co., Denver, Colo.
June 8 (letter of notification) 2,995,000 shares
stock.
Price—At par (10 cents per share).
$1,750,000
Securities Corp.)
Preferred
National Consumer Finance Corp
(Van
Noel
Alstyne,
$500,000
Co.)
Common
Corp
Noel & Co.)
Alstyne,
(Van
&
Finance
Consumers
National
Underwriter—Lasseter & Co.,
stockholders—underwritten by Blyth & Co., Inc.)
(Offering to
$8,554,000
(Monday)
Cuban
Co.)
&
$299,475
Son)
(Dallas Rupe &
(par 10
selling
stockholder. Office—Corpus Christi, Texas. Underwriter
Sept. 2 filed 500,000 shares of
cents). Price-"-At the market
Bonds
(Bids
:
(letter of notification) 5,000,000 shares of com¬
Price—At par (six cents per share).
Pro¬
For mining operations.
Office — 1026 Kearng
Aug. 29
stock.
mon
ceeds
—
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
Lake City, Utah.
f ;
•
Cuban American
91,875
Dominick)
Inc., Dallas, Texas.
Co., Spokane, Wash.
June 16 (letter of notification) 1,500,000 shares of com¬
mon stock.
Price
10 cents per share. Proceeds—For
uranium and oil exploration. Office—726 Paulsen Bldg.,
Empire State Bldg., same city.
—
(Reynolds
Dillon
(Lee
& Research, Inc.—Bonds & Com.
and P. W. Brooks & Co., Inc.) $2,250,000
Higglnson Corp.
of
shares
225,000
and
bonds
Common
(Hallowell, Sulzberger & Co.) 60,000
Curtis)
&
40,000
Common
stockholders—bids 11 a.m. EDT)
to
New England
(Offering
Boston
to
Corp.
(General
Common
National
Finance
10:30
a.m.
a.m.
Preferred
$520,000
Chesapeake
Ohio
&
(Bids
to
be
North
Equip. Trust
Shore
Ctfs.
Union Corp. of
& Co.)
400,000 shares
November
797,800 shares
Power
(Bids
New Jersey Bell
(Bids
Chicago, Rock Island &
(Tuesday)
by Ralph
Schneider and
E.
the two selling stockholders.
Price—To be supplied by amendment (estimated offer¬
S.
Bloomingdale,
Proceeds—For
working capital. Underwriters — Lee Higginson Corp.
and C. E. Unterberg Towbin Co., both of New York.
Dinosaur Uranium
Corp., Salt Lake City, Utah
>
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
incident to mining activities. Office
Place, Salt Lake City, Utah.
Dix Uranium Corp.,
Underwriter
city.
—Western States Investment Co., same
Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
North
Proceeds—For mining expenses.
Office—290
University Ave., Provo, Utah.
Underwriter —
Investment Co., Provo, Utah.
Dixon
,
Chemical
& Research,
Inc.
(11/1)
filed $2,250,000 6% first mortgage bonds due
1975 and 225,000 shares of common stock (par $1) to be
Sept. 28
Continued
on
page
38
Preferred
(Wednesday)
to
be
__Bonds
received)
$2,500,000
(Tuesday)
Bonds
& Light Co
$10,000,000
to be invited i
Preferred
Debentures
$25,000,000
to be invited)
December
Equip. Trust Ctfs.
$2,952,000
(Wednesday)
Telephone Co
New York.
Boston
t/t
Pacific RR.
(Bids noon CST)
shares
100,000
to
$12,500,000
Co
December 14
Common
8
and
(par $1),
be offered by the com¬
150,000 shares of common stock
50,000 shares are
.
Delaware Power & Light Co.__
(Bids to be invited) $5,000,000
Williston & Co.) 200,000 shares
November
Club, Inc., New York
filed
(Monday)
7
Nortex Oil & Gas Corp
(J. R.
25
which
pany
•
Bonds
(Tuesday)
invited)
December 13
Delaware
Common
America
(No underwriting)
Gas
(Bids
—-Common
Barney
Diners'
$4,800,000
EST)
Ranco, Inc.
(Smith,
Wyo.
,
(Thursday)
Ry
(Bids noon
(Tuesday)
Virginia Electric & Power Co
December 7
3
November
<_____Bonds
$30,000,000
EEjT) $18,000,000
December 6
$7,500,000
(Baker, Simonds & Co.)
$1,250,000
& Electric Co
11:30
Office—223 City and County Bldg., Casper,
City, Utah.
260,000 shares
Common
EST)
Proceeds—Expenses incident to mining oper¬
share.
—15 Exchange
Common
Investing Corp.)
(letter of notification) 600,000 shares of non¬
common stock (par five cents). Price—50 cents
ceeds—For expenses
(Wednesday)
November 29
(Bids
Co
Debentures
$30,000,000
invited)
be
Consolidated Gas Co
San Diego Gas
Bonds
EST)
a.m.
to
Co., Casper, Wyo.
Minerals
Delta
Weber
(Territory of)
10
$15,000,000
Co.)
&
Tel. & Tel. Co
(Bids
stockholders—underwritten by The First
and Glore, Forgan & Co.) approximately
(Bids
Co., Chicago, 111. Offering-—Expected late
early November.
or
assessable
Debentures
Noyes
(The First Boston Corp. and Blyth & Co., Inc.)
1,110,375 shares
Hawaii
in October
ing price is stated at about $8 per share).
Common
shares
Colohoma Uranium, Inc..
1,507,303 shares
Co
262,500
Arizona Public Service Co.
(Wednesday)
Edison
Commonwealth
(Tuesday)
Inc.)
November 16
Michigan
November 2
Co.
shares
shares
Co.
Southern
<Offering
82,500
Brothers)
(Lehman
&
Co
Tea
(Bids
Common
Quaker City Life Insurance Co
Becker
(Hemphill,
Common
Jackson
Webber,
(Paine,
G.
shares
Corp
Process
Houdry
National
stock
Fischer & Porter Co
first mortgages; balance for payment of obli¬
gations and expenses of the two companies in liquida¬
and for liquidation distribution to stockholders.
Underwriters—The First Trust Co., of Lincoln, Neb. and
Alfred
Marquette Cement Manufacturing Co
(A.
Dixon Chemical
Common
November 15
—Debentures
$4,125,000
(Lehman Brothers)
Co., Inc., and its eligible employees. Price
unit. Proceeds—For retirement of indebtedness
tion
&
Co.) $700,000
(Cruttenden &
$300,000
Co.)
&
Inc
Lines,
Air
Production Co., Wichita, Kan.
Gas
per
secured by
of
Inc.
Homes,
—Common
Commonwealth Life Insurance Co
(Eastman,
Coffin
by
(Monday)
14
November
Richmond
$1,500,000
Co.)
&
—$4
Oct.
Debentures
;
Dawn Uranium & Oil
Underwriter—The Western Trader & Investor, Salt Lake
_________„_Preferred
stockholders—underwritten
Burr, Inc.) 100,000 shares
to
(10/31)
ing & Exploration Co.) for drilling and exploration costs.
Office—Dallas, Texas. Underwriter—Dallas Rupe & Son,
per
(Thursday)
10
shares
Automobile Banking Corp
Continental
(Offering
stockholders—underwritten by Dominick &
(Offering to
$20,000,000
EST)
noon
Keyes Fibre Co.__
Common
Co.
Oil
Sept. 9 filed 2,000,000 shares of common stock (par 50
cents). Price—$1.25 per share. Proceeds—For acquisi¬
tions and advances to subsidiary (Cuban American Drill¬
ations.
Securities Co
a
Mining Co., Denver, Colo.
May 27 (letter of notification) 3,000.000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.
Sept. 20
United Gas Corp
(Tuesday)
November 1
stock
common
Proceeds—To
Cortez Uranium &
Common
$400,000
Inc.)
$2,500,000
November
American European
$757,500
Cc^p
(Gearhart & Otis,
——Common
Co
American Oil
Corp.)
Anthony Securities
International Metals
Common
Puller
D.
(S.
Inc._—Pfd. & Com.
Eagle Newspaper Enterprises,
(James
October 31
Denver, Colo.
Corpus Christi Refining Co.
Cruttenden &
$1,200,000
Chromalloy Corp.
Common
Newsprint Co.—
Coosa River
of common
Proceeds—
For mining operations.
Offices — 738 Majestic Bldg.,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Natural
& Gas Co.________.
Preferred
Webber* Jackson & Curtis and Stone & Webster
Electric
(Paine,
205,000 shares
Inc.)
Co.
&
Central
Nov. 29-.
Proceeds—Together with other
Office—Coosa Pines, Ala. Under¬
1955; rights to expire on
8,
share.
Hugoton Gas Trust, to be made by means of warrants
to be issued to common stockholders of Kansas-Nebraska
(Wednesday)
November 9
Co
Blower
(par $50)
for
Sept. 30 this company, together with Kearney Gas Pro¬
duction Co., filed 935,999 units of beneficial interest in
CALENDAR
(Friday)
28
October
Lau
"
subscription by common stockholders
the basis of one new share for each three shares held
offered
Deerfield Gas
NEW
.,«•
(11/9)
Cross-Bow Uranium Corp.
repay bank loans and for working
Underwriter—Lehman Brothers, New York.
Continental
River Newsprint Co.
filed
19
be
to
(11/1)
Inc.
$4,125,000 of convertible subordinated de¬
1970.
Price—To be supplied by amend¬
Proceeds—To
ment.
capital.
'
•
>
Coosa
—None.
d'Alene, Idaho.
kane, Wash.
•
July 12 (letter of notification) 15,000,000
mon
same
Coeur
Washington, D. C.
Comet Uranium Corp.,
Texas.
June
June 7
(letter of notification) 300,000 shares of common
(par 20 cents). Price—$1 per share. Proceeds—
For oil and mining activities.
Office — 350 Equitable
Price—$1.50 per share. Proceeds—For general corporate
.Underwriter—Central Securities Co., Dallas,
purposes.
funds, for expansion.
(11/1)
Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
credited to capital stock, unassigned surplus and reserve
for business development ana for expansion and life
reserves.
Office—616 South Main St., Tulsa, Okla. Un¬
37
"
General Capital Corp
(No
15
Philadelphia
(Thursday)
1
underwriting) $300,000
Debentures
Pittsburgh
San Francisco
Private Wires to all
offices
Chicago
Cleveland
The Commercial and Financial Chronicle
(1786)
38
37
Continued from page
Houdry Process Corp. (11/1-2)
filed 40,000 shares of capital stock (par $10)
be supplied by amendment. Proceeds — T
selling stockholder. Underwriter—Paine, Webber, Jack
$500 of bonds and 50 shares of stock.
supplied by amendment. Proceeds—For
construction of plant, etc.; for acquisition of Dixon
Chemicals, Inc.; and for working capital. Office—Clif¬
Sept. 22
space
Price—To
be
Price—To
ton, N. J. Underwriters—Lee Higginson
Brooks & Co., Inc., both of New York.
Corp. and P. W.
Uranium Mines, Inc., Denver,
-
Colo.
(letter of notification) 1,300,000 shares of com¬
mon stock (par one cent).
Price 20 cents per share. Pro¬
ceeds
For expenses incident to mining operations.
Office—352 Colorado National Bldg., Denver, Colo. Un¬
derwriters—R. L. Hughes' & Co., Denver, Colo, and G.
W. Allen & Co., Cheyenne, Wyo.
July 12
Fowler Telephone Co., Pella, la. son & Curtis, Boston, Mass., and New York, N. Y.
May 6 (letter of notification) $260,000 of 4% first mort- •'
★ Howard Minerals, Inc., Portland, Ore.
gage bonds, series A, due May 1, 1975.
Price—At par
Oct. 3 (letter of notification) 162,500 shares of commo
(in denominations of $1,000 each). Proceeds—To retire
stock. Price—At par ($1 per share). Proceeds—For ex
existing debt, acquire Northwestern Bell properties in '
Leighton, la., and for conversion of both exchanges to . penses incident to mining operations. Office—222 S. W
Oak St., Portland, Ore. Underwriter—None; stock to b
dial operation.
Underwriter — Wachob-Bender Corp., .
offered through officers and directors of the corporation
Omaha, Neb.
—
★ Eagle Newspaper Enterprises, Inc. (11/9-10)
of 7% cumulative convertible
Oct. 19 filed 75,000 shares
preferred stock (par $10) and 75,000 shares of common
stock (par 10 cents) to be offered in units of one share
of each class of stock. Price—$10.10 per unit. Proceeds—
To exercise an option, which expires on Dec. 4, 1955,
to acquire certain properties of the
Brooklyn Eagle,
Inc.; and for wbrking capital. Office—Brooklyn, N. Y.
Underwriter — James Anthony Securities Corp., New
York.
Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
common stock.
Price—At par (one cent per
assessable
activities.
Railway Supply Co.
v
s
(letter of notification) 20,000 shares of common
stock (no par) to be offered for subscription by stock¬
holders*
Price—$10 per share.
Proceeds—To reducer
unsecured bank loans and for working capital. Office— <
Vegas, Nev.
927
-
to
Wilmington,
Del.
Underwriter—None,
Ball have agreed
•
of common stock (par $10)
share. Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title and
mortgage.
Office—2054 University Avenue, Berkeley,
per
share. Proceeds—For expansion and
Office—386 Fourth Avenue, New York
Underwriter—None.
per
Underwriter — Blair & Co.
York. Offering—Date indefinite.
Incorporated,
★
New
Fremont Uranium Co.;
chasers
of
stock).
Electronic
Micro-Ledger Accounting Corp.
Salt Lake City, Utah
Oct. 27, 1955 on the basis of one new
shares held; rights to expire on Nov.
,
per
;
curred
Office—515 Deseret Bldg.,
Underwriter — Moab Brokerage
expenses.
Gallina Mountain Uranium Corp.
July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
Proceeds—For mining expenses. Office—82 Beaver St.,
New York. Underwriter — Prudential SecuritiesCorp.,
mon
by stockholders.
Price—$1 per share. Proceeds—For
general corporate purposes. Office—53 State St., Boston,
Underwriter—None.
Mass.
Inc., Orlando, Fla.
Oct. 7 (letter of notification) 120,000 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds—
Empire Studios,
To
finish
three
films
under
release
contract to
Repub¬
lic Pictures
Corp. Underwriter — Gerard R. Jobin In¬
vestments, Ltd., St. Petersburg, Fla.
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
stock (par 50 cents). Price—$1 per share.
Proceeds—
For mining expenses.
Office—2320 South Main Street.
Salt Lake City, Utah.
Underwriter — Eliason, Taylor,
Cafarelli Co., Las Vegas, Nev.
Farm Family Mutual Insurance Co., Albany, N. Y.
June 28 filed $1,500,000 of 5% debentures to be offered
directly
members
to
Federation
and
to
of
State
the
Farm
American
Bureau
Farm
Bureau
Federations and
local organization.
Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
Inland Oil & Uranium Corp.,
11.
★ Filtramatic Distributing Corp.
Oct. 20 (letter of notification) 100 shares of preferred
stock. Price—At par ($300 per share). Proceeds—For
working capital, etc. Business—Sale of automotive oil
Denver, Colo. <
1,200,000 shares of com¬
(par 10 cents), Price — 25 cents per share.
Proceeds—For expenses incident to oil and gas activities.
Office—3975 East 58th Ave., Denver, Colo. Underwriter
•
—Shaiman & Co., Denver,
Gibraltar Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
stock (par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Connell, Inc., Denver, Colo.
mon
•
Sept. 29 (letter of notification) an undetermined number
of shares of common stock (par $1) to be offered to
stockholders
common
be
supplied
Office—417 South Hill St., Los Angeles,
general funds.
Calif.
through transferable warrants.
by amendment. Proceeds—For
Gulf Coast Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.
Underwriter—I. I; I. Securi¬
side of the United States.
ties Corp.,
76 Beaver St., New York, N. Y.
Metals
International
.;
*
Corp.. (11/9-10)
-
400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex.
Under¬
writer—Gearhart & Otis, Inc.; New York.
r
4
filed
cents).
,
Plastic
International
Industries
Corp.
notification) 150,000 shares of common
Price—$2 per share. Proceeds—
to Arliss Co., Inc. for purchase of equip¬
Oct. 12 (letter of
stock
10
(par
advances
For
N.
cents).
Office
ment, etc.
—
369-375 DeKalb Ave., Brooklyn 5,
&
Underwriter—Kamen
Y.
Co., New York.
★ Investment Trust & Assurance Corp.
Oct. 13 (letter of notification) 100,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For work¬
ing capital. Office—1936 East McDowell Road, Phoenix,
Ariz. Underwriter—None; stock to be offered through
officers and directors.
Industrial
Israel
&
Corp.
Development
Mineral
stock (par $25).
Price—$27.50 per share. Proceeds—For general corpor¬
ate purposes. Underwriter—Israel Securities Corp., New
filed 200,000 shares of
5
common
York, N. Y.
,
"Isras"
Israel-Rassco
Investment Co., Ltd.
Price—At par (100
Sept. 28 filed 9,000 ordinary shares.
Israel pounds
Underwriter—None.
r
~
•-
.
Oct.
Great Lakes Oil & Chemical Co.
.
Inc.y New York \
)
Aug. 23 filed 200,000 shares of capital stock (par $1).
Price—At market. Proceeds—For investment.
Businesf
—To invest in foreign securities of the free world oiit-
Oct.
General Molded Plastics, Inc., Dallas, Tex.
Sept. 30 (letter of notification) 297,500 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For acquisition of machinery, molding equipment and
working capital. Office—Tower Petroleum Bldg., Dal¬
las, Tex. Underwriter—First Securities Co., Dallas, Tex.
Colo;
International Investors
★
Capital Corp. (12/15)
(letter of notification) $300,000 of 10 year 8%
debentures.
Price—At par (in denominations of $100,
$500, $1,000 and $5,000). Proceeds — For purchase of
commercial paper.
Office—4309 N. W. 36st St., Miami
Springs, Fla. Underwriter—None.
,*
;
(letter of notification)
stock
mon
3
Price.,—To
for
July 18
other state laws. Underwriter—None. Statement effective
Oct.
share;
Goldman, Sachs & Co.; and The First Boston Corp.;
all of New York City.
•'
General
Oct.
share for each 15
10. Price—$26.75
Proceeds-^-For repayment of bank loans in¬
construction. Underwriters—Lehman Broth¬
ers;
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
• <
'
(letter of notification) 297,000 shares of com¬
stock (par 10 cents), to be offered for subscription
,
..
6 filed 209,686 shares of common stock (no par),
being offered for subscription by stockholders of record
Empire Securities Corp., Las Vegas, Nev.
Sept. 28
e
Indianapolis Power & Light Co.
Aug. 1 (letter of notification) 15,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro-
City, Utah.
..
Uranium
Monument
Oct.
Edgemont Shopping Center, Inc., Chicago, III.;
class A common stock. Price ;
same address.
—At par ($100 per share).
Proceeds—To acquire title
to shopping center in Lansing, Mich., from builder of
Gas Hills Mining & Oil, Inc., Kemmerer, Wyo.
center. Underwriter—None, offering to be made through
Aug. 1 (letter of notification) 1,000,000 shares of capiofficers of company. Funds are to be held in escrow (if
tal stock (par five cents). Price — 25 cents per share.
not enough is received, funds will be returned to pur¬
Proceeds—For oil and mining expenses. Underwriter—
Oct. 14 filed 6,000 shares of
City, Utah.
—
•
Office—Berkeley,
Wiser, President.
Calif., c/o Ray B.
•
Mining Corp.
%
Sept. 6 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
Office—205 Byington Building, Reno, Nev. Underwriter
—Richard L. Dineley, same address.
June 6 filed 1,000,000 shares
Calif.
.
Corp., Green River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of coin
mon
stock.
Price—At par (25 cents per. share).
Pro
ceeds—For expenses incident to mining activities.
Un
derwriter
Elmer K. Aagaard, 323 Newhouse Bldg
Salt Lake
Freedom Insurance Co.
Price—$22
-
Uranium
Hunt
Indian
•
•
—
<
purchase all shares not subscribed for by stockholders.
Salt Lake
working capital.
16, N. Y.
St.,
■
Sept. 20 (letter of notification) 5,239 shares of common
stock (par $5.50) being offered for subscription by stock¬
holders of record Oct.' 1, 1955 at rate of one new share
for eaclr 10 shares held; rights to expire on Nov. 15, 1955.
Price—$35.50
Market
But C. W. Floyd Coffin and Herman F.
Hugoton Gas Trust
See Deerfield Gas Production Co. above.
ceeds—For mining
State Brokerage, Inc., Las
Life Insurance Co. of New York
Eastern
19
—
Underwriter—Valley
Utah.
* Franklin
Oct.
For expenses incident to mining
Office—214 East 5th South, Salt Lake City,
Proceeds
share).
Thursday, October 27, 195
.
★
and for marketing of "Tropicheater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
system;
infra-red
Ray"
offered in units of
Dome
"Totosave"
of
>
.
.
.
each,
about $55 in U. S. funds), payable
Issue Bonds only. Office
or
in State of Israel Independence
—Tel
Underwriter
Aviv, Israel.
—
Rassco Israel Corp.,
New York.
.
it Finance Co. of America at Baltimore
Aug. 10 (letter of notification) 8,000,000 shares of capital
Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share. -Proceeds—For expenses incident to mining
activities.
Office — 326 West Montezuma St., Cortez,
Colo. Underwriter — Bay Securities Corp., New York,
Oct.
stock.
New York.
filters and automobile accessories. Office—270 Park Ave.,
New York, N. Y. Underwriter—None.
19
common
(letter of notification) 10,000 shares of class A
stock (par $10), to be offered for subscription by
stockholders
on the basis of one new share for each
10
shares held. Price—$30 per share. Proceeds—To form and
invest in the capital stock of an insurance company sub¬
sidiary.
Office—Munsey Bldg., Baltimore 2, Md. Under¬
writer—None.
it First Investors Corp., New York
Oct.
21> filed
(by amendment) additional periodic pay¬
plans (DM and DMN) and single payment plans
(DMP) in an aggregate amount of $9,000,000.
ment
Fischer & Porter Co., Hatboro, Pa. (11/1)
10 filed 60,000 shares of common stock (par
Oct.
Price—To
be
—Hallowell, Sulzberger & Co., Philadelphia, Pa.
★ Forminco, Inc., Pittsburgh, Pa.
Oct. 14 (letter of notification) 1,200,000 shares of non¬
assessable capital stock (par five cents). Price—10 cents
share. Proceeds—For expenses incident to mining
operations. Office—1609 Union Bank Building, Pitts¬
per
burgh, Pa. Underwriter — None, shares to
through certain officers of the corporation.
Pitt
June 30 filed
be
—For
Price—At
mining
Utah.
offered
Packaging International, Inc.
300,000 shares of common stock (par 100),
par
Corp., Ogden, Utah
(two cents per share).
Proceeds
Office—E-17 Army Way, Ogden,
expenses.
Underwriter—United
Intermountain
Brokerage
Corp., Ogden, Utah.
★ Holiday Lake, Inc.
Oct. 21
(letter of notification) 24,500 shares of 6%
cumulative preferred stock (par $10) and 4,980 shares
of class A common stock (par $5) to be offered in units
of five preferred shares and one class A common share.
Price
$55 per unit. Proceeds — For acquisition of
property, improvements and working capital, etc. Office
—
—1008
$1).
supplied by amendment. Proceeds—For u
capital improvements and working capital. Underwriter
Fort
Half Moon Uranium
•
Wilson
Bldg., 130 No. Broadway, Camden, N. J.
•
Salt Lake City, Utah
Sept. 1 (letter of notification) $300,000 of 25-year 6%
junior subordinated debentures due Oct.. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro¬
ceeds—For working capital.
Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.
Home Oil Co., Ltd., Calgary, Canada
Sept. 26 filed 1,500,000 shares of class A stock and 3,793,231 shares of class B stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock
on
the
basis
of
one
share
of
either
class
A
or
class
B
stock in exchange for each two Federated shares. Stock¬
holders
share.
Proceeds—For
working capital; for exploitation
stock, Price—$1 per share. Proceeds—For exploitation of
patent for rotating refrigeration device. Office— 927—
15th St., N.W., Washington, D. C. Underwriter—None.
Kachina Uranium Corp.,
will
vote
Dec.
assets of Federated.
6
on
approving
acquisition
of
Reno, Nev.
.
May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents).- Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia St., Reno,
Nev. Underwriter—Whitney, Cranmer & Schulder, Inc^
Denver. Colo."
Kansas
Home Acceptance Corp.,
50,000 shares of five selling stockholders.
per
★ Justice Industries, Inc., Washington, D. C.
Oct. 4 (letter of notification) 50,000 shares of preferred
Underwriter—None.
of which 250,000 shares of for account of company and
Price—$3
Jurassic Minerals, Inc., Cortez,
City Title Insurance Co.
<
capital
record
chare for each eight
Sept. 19 (letter of notification). 7,500 shares of
stock (par $25), to be offered to stockholders of
Sept. 15.on the basis of one new
Price—$40 per share. Proceeds—For general cor¬
held.
porate imrposes. Office—Title
Underwriter—None.
★ Kayser
on
,
,
& Co., New York
130,000 shares of common stock (par $5)
for subscription by common stockholders
the basis of one new share for each five shares held.
Oct.
to
(Julius)
Bldg., Kansas City, Mo.
24
be
filed
offered
Price—$20
purposes.
per
share.
Business
—
Proceeds—For general corporate
Manufactures wearing apparel.
Underwriter—None.
Kearney Gas Production Co.
See Deerfield Gas
Production Co. above.
|
olume
182"
Number 5476
>
.
The Commercial and Financial Chronicle
;
Keyes Fibre Co., Waterville, Me. ( 11/10)
(The) Manchester Co.
t.\2l filed 100,000. shares of cumulative first preferred* v Oct; 12 -(letter' ©ft
notification) 10,600 shares of cumhlatock (par $25) to be offered for subscription by common
tive convertible preferred stock
(convertible any time
tockholders of record about Nov. 10 on the basis of one
after Jan. 1, 1956 into common stock on a share-forof
hare
preferred
stocky for
each
shares
seven
held.;
supplied by amendment/ Proceeds—For
building- construction
andf manufacturing
quipment. Underwriter—Coffin & Burr, Inc., Boston^
•'
/""T
"■
•
...
..
on-Ricbardson financial interests
further exploration.. Underwriter—None.
*
supplied .by- amendment. Proceeds—TO retire out*
ding bank loans and Jor exploration of oil and gat
eases.
Ohio.
^
^
Monogram Uranium & Oil Co.
Aug. 31 filed 1,000,000 shares of common stock (par $1)«
$2 per share. Proceeds — To piake payipent of
$675,000 to Four Corners' Uranium Corp. under a EP&J.
chase contract; to use $100,000 each to purchase mining!
equipment, to pay for development anddrivingdrift and
for exploratory drilling; and the remainder.forvworking
capital, acquisition of additional properties,-and unfore¬
.
^ Manufacturers Cutter Corp. ..
^
Oct/18, '(letter of hotification) 300,000 shares'of claSs A
Common stock. Price—At pdr ($1 per
share)/ Proceeds*^
.
of Texas;; Price—To
'
r
Price — At par ($50 per share).
Proceeds—For processing plant, heavy equipment, and
working capital' Office—2508 Apburn Ave^ .Cincinnati,
Ohio. Underwriter — W. E. Hutton & Co., Cincinnati,
Manning Mining Co., Sumter, 8. C.
Oct. 19, (letter of notification) 49,660 shares of common
stocksJPrice — At par ($1 per share). Proceeds
Fotf
Kirby Oil & Gas Co. /. . £
.,./Y''
~
uly 8 filed 200,000 shares of common stock (par $1);
f which 100,000 shares are-forrthe account pf the comny and 100,000 shares for the account t>f/the/Murchl-
Ohio
shades of 8% cumu¬
lative preferred stock.
basis). Price—At par ($10 per share)/ Proceeds*For working capital. Underwriter—Charles E*. Thenebe
& Associates, Hartford, Conn.
>
rice—To-be
'ass.
5; -Mohawk Silica Co., Cincinitati,
-Oct. 3"(letterof notification) 3,000
share
dditional
38
(1787)
/ To repay-loans, and; for new equipment and- working
seen
Underwriter—Allen
Co.; New York
Ca., ..Dallas, -Texas. / Offering
ned indefinitely./ ;>.
contingencies.
Mich,
v>
■
Underwriter—Carr & Co., Detroit;.
•'
"■ •/
.■
cher.Pierce. &
Monte Carlo Uranium
Mino*, Bnc.^
(letter of notification) 6,000,000-«hares; of coni-r
June 6
Lander Valley Uranium & Oil Corp.
YY
tig.+15 tletteF ofpotification)v8,000,000/Siiiat;5 uz tomtig. 15 (letter
of,;^tificatipa>/^-,006,000/$hares of boniAiv/ejf Anlr
A-****** ?r»ar»fc» V ' VviaA'
16"
Y*oi/rWSmriftstock.
Yrier
tn
*■+
D.
roceeds—-For expenses- incident
to
mining :activities
^
""Y
'.v*
\ ft;
/
H
filed
.205,200,'shares -of *common stock (par $1);/;
by amendment/ Proceeds-^To f
selling stockholders: Underwriter — A. 'C. Allyn & Co.,
Inc., Chicago,'111.
•:'/-";V-ft;''/".*•/
"rice
To- be supplied
.—
Leborn Oil. & Uranium Co.-//-
June 8
;-
October._
,
^
Calif.
/f'
„
★ Leo Uranium Mining Corp.
Oct... 14-(letter of-notification)
.'
^
shares
Proceeds
a
non¬
basis of
one
share of
common
15, 1955; rights to expire on
Nov/7, 1955. Price—$37 per share. Proceeds—For work¬
ing capital. Office—1342 M St., Lincoln, Neb. Under¬
writer—None.
East
Grand
%
Inc.1
—
15
Inc., Philadelphia, Pa.
(letter of notification) 300,000 shares of
com¬
Mining Corp., Fort Collins, Colo.
Office—415 Peterson St., Fort
Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New York, N. Y.
-
Metallurgical Resources, Inc., New York
Sept. 12 filed 500,000 shares of 6% non-cumulative
.
con¬
vertible preferred stock. Price—At par ($2 per share).
Proceeds—For construction of plant; for research and
development; and for working
M. S. Gerber, Inc.. New York.
Z.
Mexico
Oct.
Refractories
capital.
Underwriter—
(par $5) to
be offered
to stockholders of National Refractories Co.,
subsidiary, in exchange for 57,776 shares of capital
stock (par $5) of National on a share-for-share basis;
.
Lithium
-Oct.
Developments, Inc.; Cleveland, Ohio
filed 600,000 shares of common stock (par
17
offer to remain open for 60 days from date of prospectus.
10
Price—$1 per share. Proceeds—For exploration
development costs, etc.
Underwriter—George Searight, New York City.
cents).
Offer is conditioned
and
of
Little
Mac
Uranium
outstanding
exchange.
Co.
-
Underwriter—Skyline Securities, Inc.,
Lost Canyon Uranium &
Inc.; White, Weld & Co. and Lehman Brothers
(jointly); Smith, Barney & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. Inc. and Union Secu¬
rities Corp. (jointly). Bids—To be received up to 10:30
a.m.
(EST) on Nov. 16.
Oil Co.
6
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake City, Utah.
Louisville
Gas
&
Electric
Co.,
Ky.
Sept. 22 filed 160,000 shares of common stock (no par)
being offered for subscription by common stockholders
of record Oct. 13 at the rate of
10 shares
.
Co.
(letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent).
Price—10 cents
per share.
Proceeds—For expenses incident to mining
.operations. Office — Simms Bldg., Albuquerque, N. M.
,
Mexico owning at least 80%
upon
consummation of
stock
Consolidated Gas Co. (11/16)
Oct. 20 filed $30,000,000 of first mortgage bonds due
1980. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Denver, Colo.
Oct.
upon
National
* Michigan
Sept: 12 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—440 West 3rd North, Salt
Lake City, Utah.
held; rights to expire
one
new
Mitchell Mining Co., Inc., Mount Vernon, Wash.
'May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
t
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.
Moab Treasure
share for each
Nov. 1.
Uranium
Corp.
Price—$47 per
program.
Under¬
writers—Lehman Brothers and Blyth & Co.,
Inc., New
-July 25 (letter of notification) 6,000,000 shares of comi mon stock.
Price—Five cents per share. Proceeds — For
-expenses incident to mining activities.
Underwriter —
York.
:
f
share.
,
.
Proceeds
—
For
on
construction
Lyman-Farnsworth Corp.
May 6 (letter of notification as amended) 3,000,000 shares
of capital stock (par one cent). Price—10 cents per share.
-Proceeds—For mining operations. Office—201 No. Main
St., Salt Lake City, Utah. Underwriter—Pioneer Investments, Las Vegas, Nev.
Magna Theatre Corp., New York (10/26)
Sept. 29 filed 110,000 shares of common stock (par five
cents) to be offered for subscription by common stock¬
holders of record
for each
20
Oct. 26 at
shares held.
the
rate
Price—$5
of
per
one
share.
new
—To
for
share
Proceeds
pay interest on outstanding 6% debentures, and
general corporate purposes.
Underwriter
The
United Artist Theatre
—
Circuit, Inc. of New York.
-
**
~
^
*
-
*
Mortgage Associates, -Mc.,'Philadelphia,-Pa.
June 7 (letter of notification) 20,000 shares of 60-cent
convertible
preferred stock* (par $5) and 20,000 shares
stock (par 10'cents). Price—For preferred;
$10 per share; and for common, $2.50 per share. Proceeds
common
—For construction loans and acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa,
★ Mortgage Corp. of America, Philadelphia, Pa.
Oct. 14 (letter of notification) 50,000 shares of common
stock (par $2).
Price—$2.25 per share. Proceeds—For
operating and working capital and general corporate
purposes.
Office — 1200 Walnut St., Philadelphia, Pa*
Underwriter—Keystone Securities Co., Inc., same city.
Utah Uranium Brokers, Salt Lake City, Utah.
Mobile
Uranium
& Oil
Co., Salt Lake City, Utah
■Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities.
Office—605 Judge Bldg., Salt Lake
City, Utah.
Colo.
Underwriter—Skyline Securities, Inc., Den¬
ver,
Moder-Rate
Homes, Inc., Bradford, Pa.
300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For design and construction of first 20 homes; promotion
and advertising, contingent fund, etc.
Office—2 Main
St., Bradford, Pa. Underwriter—William T. Bowler &
Co., Bradford, Pa.
Oct. 7
(letter of notification)
■!,' Mountain States Telephone & Telegraph Co.
Sept. 7 filed 486,881 shares of capital stock (par $100),
being offered for subscription by stockholders of record
Sept. 27, 1955 on the basis of one new share for each five
held; rights to expire on Oct. 28. Price—At par ($100
per share.
Proceeds — Toward repayment of advances
from American Telephone & Telegraph Co. and for gen¬
eral corporate purposes. Underwriter—None.
•
National Consumer Finance Corp.
(10/28)
shares of convertible preferred
($10 per share) and accrued divi¬
dends. Proceeds—To repay bank loans. Office—19 River
St., Stamford, Conn. Underwriter—Van Alstyne, Noel &
Co., New York.
*
Sept.
28
stock.
filed
50,000
Price—At par
.
•
National
Consumer
Finance
Corp. (10/28)
Sept. 28 filed 200,000 shares of class A common stock
(par $1). Price—$6 per share. Proceeds — To selling
stockholders.
Office
19 River St., Stamford, Conn.
Underwriter—Van Alstyne, Noel & Co., New York.
—
Co., Mexico, Mo.
19 filed 57,776 shares of common stock
a
•
Bldg., Spokane, Wash. Underwriter—Fennaluna & Coa.„
>*aiI^--cy'
of
July 13 (letter of notification) 2,955,000 shares of com¬
mon stock
(par one cent). * Price — 10 cents per share.
♦Proceeds—For expenses incident to mining operations.
stock for each
of Sept.
as
Mines,
Mesa-Loma
(letter of notification) 7,128 shares of common
(par $16.66%) to be offered to common stocka
At
Bliedung, Washington, D. C.
Lincoln Telephone & Telegraph Co., Lincoln, Neb.
on
r
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
,
None.
shares held
—
,
"
_
unsold shares will be offered to public. Price—$8.75
per
share to stockholders; $10 per, share to public. Proceeds
—For expansion and working capital.
Underwriter—
stock
&
;
Medical Abstracts,
June
holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to expire 45
days
from the commencement of the
offering, after which
27
Becker
None.
Shreveport, La.
Sept. 26 filed 100,000 shares ofmommon stock (par 25
cents) to be offered for subscription by present stock¬
'holders
-
McCullough Motor Corp., Philadelphia, Pa.
19 (letter of notification) 199,000 shares of class A
stock and 99,000 shares of class B stock. Office — 1111
Lewis Tower Bldg.,
Philadelphia, Pa. Underwriter—
Life Underwriters Insurance Co.,
Oct.'3
G.
Oct.
Connell, President
director.,
A,
For expenses incident to mining Activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
'Offices—Phillips Petroleum Bldg.; Salt Lake City and
436 N. Main St., Pocatello, Idaho.
Underwriter—None;
and
—
/Z7
„
Morning Sun Uranium, trie., Spokane, Wash.
-June ).4 (letter of notification) 700,000 shares of com*
.Co.mon, stock (par 10 cents). -Price
25-cent& per share.
./ - Proceeds—For mining expenses.. Office**415 Paulsen
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents)^-/Price-r-62% cents per share.
>
■
of
/ Mascot
V
assessable common stock. Price—At par ($1 per
share).
Proceeds—For expenses incident to mining operations.
shares to be offered through Perry W.
Underwriter
capital and for equipment. Office — 5622
Ave., Dallas 23, Texas. Underwriter—None.
}
150,000
cent). Price—$1 per share. Proceeds—For; purchase o*
par,/|$l per share). Proceeds — To
•liquidate long; term notes; provide additional working
Offering—Ex¬
v
/ieV
^ Marshall Rubber Co.,- Dallas, Tex.
•
Oct. 19 (letter of notification) 116,000 shares of common
—For payment of liabilities and-expenses incidbht to oil
and gas and mineral activities. Underwriter—F#St Cali¬
pected in
program.
stock/-Price
LeCuno Oil Corp., Jefferson, Texas
Francisco,
Mi
Monte Cristo Uranium Corp. —
—
V
Aug. 19 filled 2,000,000 shares of common stock (par on®
certain claims designated "LowerClaims Group." Office
Lake City, Utah. Underwriter—None.
*
,/„ /
pansion
Price—At-par (five cents per share).! Proceeds—
expenses, Office124% South. Main St„
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah. /
V
San
c
.
Win<r
Inc., Chicago; 111.
For mining
Inc.,
•
company and 12,500: for 4he accourtt of an-estate.
Price
—TO be supplied by/ainendmentv
Proceeds—For~ex-
stock.
Co.,
mining
iPfV 25 filed_262,500^^hai^j^o^n^Jrst^cfe^par-$4),——Salt
of which 250,000 shares ^arerttr-h£*3old<far-account of
(letter of notification) 6,000,000 shares of capital
fornia
-
•
a
/ /
Aug. 29- filed 450,000 shares of- capital; stock?- (par^ 10
cents). Price—^To be supplied by amendment./proceeds
.:
«
■
;
1
Lau Glower Co.,Gay ton, Ohio10/28)
4
wcus—rur
Lake'city,
urities Com.. Las Veeas. Nev.'Y;::cZ -V-cv*
urities Corp., Las Vegas, Nev.
Oct.
Price—At*par \(fYve'cent^jptjer^are), P
unitx
—
iuu
newuuuw
mining expenses. OffiiC—: tb6 NewhoUa*
Bldg.. Salt
Utah. Itaaermtter-Mid-Omtinent Securities; Inc.. same city.
--
"
«S£2Sg
" Aril,,
cisco^Calif. Underwriter—Globe Securities Qorp^ Jfew
ffice—c/6/Warren ^-Morgan/President, 1105 jSast
outb, Salt; Lake CityvDlah.Y Underwriter—Empire Se- /
.•
-
„
,
on-stock-<par
•
National
Finance
Co., Detroit, Mich. (11/2)
shares of 68-cent cumulative con¬
$10), of which 48,000 shares
are to be offered publicly and 4,000 shares to company's
officers and employees.
Price—$12.50 per share. Pro¬
ceeds—For working capital.
Underwriter—Baker, SiOct.
12
filed
52,000
vertible preferred stock (par
monds &
•
Co., Detroit, Mich.
National
Oct.
19
Tea
filed
Co., Chicago, III. (11/15)
$15,000,000 of convertible sinking
subordinated debentures due Nov.
1, 1980.
fund
Price—To be
supplied by amendment.
Proceeds — For payment of
loans
incurred for
expansion.
Underwriter —
Hemphill, Noyes & Co., New York.
bank
Natural Power Corp. of America, Moab, Utah
Sept.
7
(letter of
notification) 300,000 shares of non¬
stock (par one cent). Price—$1 per
Proceeds—For expenses incident to mining ac¬
assessable
share.
tivities.
common
Underwriter—Western Bond & Share Co., Tulsa,
Okla.
Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
(par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
stock
•Ave., Provo, Utah. Underwriter
Salt Lake City, Utah.
—
Lindquist Securities,
Nevada Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification) 1,500,000 shares of comI mon stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
'Office—Professional Building, Winnemucca, Nev.
Un¬
derwriter—Shelley, Roberts & Co., Denver, Colo.
£ New England Telephone & Telegraph Co. (11/15)]
Oct. 21 filed $30,000,000 of 36 year debentures due Nov.
15, 1991. Proceeds—To repay advances from the Ameri¬
Telephone & Telegraph Co. Underwriter—To be de¬
can
termined by
competitive bidding. Probable bidders: Hal-
ley, Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; Glore, Forgan & Co. Bids—Expected to
be received
on
Nov. 15.
Continued
on
page
40
40
The Commercial and Financial Chronicle
(1788)
Continued from page
Penn Fuel
39
Copper Corp.
Hew Mexico
stock). Trice—At par.
Office—Carrizozo,
penses.
Sabbath Co., Washington, D.
C.
shares of com¬
cent). Price—Three cents per share.
(letter of notification) 2,500,000
July 27
mon
Proceeds
Mexico Oil & Gas Co.
New
stock (par one
—
For general
Proceeds
—
C.
Electric & Gas Corp.
York State
New
corporate purposes. Office
Underwriter—Lewellen-Bybee Co., Wash¬
Bethesda, Md.
ington, D.
•
for 220 shares of com¬
— For mining ex¬
N. M. Underwriter—M. J.
time at rate of $100 of bonds
any
stock (no par)
being offered for subscription by common stockholders
Sept. 28 filed 303,407 shares of common
of record Oct. 18 on the basis of one new
share for each
— $37
held; rights to expire on Nov. 3. Price
10 shares
Proceeds—To repay bank loans and for con¬
struction program. Underwriters — The First Boston
Corp.; Lehman Brothers; Wertheim & Co.; and Merrill
Lynch, Pierce, Fenner & Beane.
per
share.
Oil
&
Gas
(11/7-10)
Sept. 16 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
•
Nortex
Corp.,
Dallas
purchase certain oil and gas properties and leasehold
interests; for drilling and development costs; to pay off
$450,000
purposes.
promissory notes; and for general corporate
Underwriter—J. R. Williston & Co., New York.
if Northern California Plywood, Inc.
Oct. 17 (letter of notification.) $300,000 of 6% three-year
promissory notes.
of
ment
and
loan
30
cumulative
Sept 8 (letter of notification) $100,000 of 6% convertible
debenture bonds due Oct. 1, 1965 (to be convertible at
mon
Gas, Inc., Oxford, Pa.
(letter of notification) 11,538 shares of $1.50
preferred stock
(par $22.40)
and 11,538
shares of common stock (par $1) to be offered in units
of one share of each class of stock (8,538 units to public
and 3,000 units to employees). Price—To public $26 per
unit; and to employees $23.40 per unit. Proceeds—For
expansion of system and working capital. Office—45 S.
Third St., Oxford, Pa. Underwriters—James A. Leavens,
Inc., Shamokin, Pa.; and Theron D. Conrad & Co., Sunbury, Pa.
Sept.
Price—At par. Proceeds—For repay¬
for log and timber fund.
Address—
City, Calif. Underwriter—None.
P. O. Box 337, Crescent
if Norwood Uranium, Inc., Norwood, Colo.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining expenses. Underwriter—Columbia
Oct. 21
Securities Co., Denver, Colo.
Penn-Utah
Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock (par three cents).
Price—15 cents per share.
Proceeds—For expenses incident to mining activities.
Aug. 4
Office—206 N. Virginia Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
Permian Basin Uranium Corp.
June 2 (letter of notification) 640,000 shares
stock.
For
Price—At
of common
(10 cents per share). Proceeds—
Office—613 Simms Building, Albu¬
par
mining costs.
N. Mex.
Underwriter
Corp., Salt Lake City, Utah.
querque,
Pittman
—
Western
Securities
Drilling & Oil Co., Independence, Kan.
payment of note and working capital. Office—420 Citi¬
National Bank Bldg., Independence, Kan.
Under¬
Co., Wilmington, Del.
zens
writer—Dewitt Investment
Life
Postal
Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
if Olive-Myers-Spalti Mfg. Co.,
Oct.
24
filed
100,000
Dallas, Tex.
shares of cumulative convertible
preferred stock (par $6.25) to be offered for subscription
by common stockholders on basis of one share of prelerred stock for each 2.597 shares of common stock held.
Price
—
$9.50
share. Proceeds —For expansion
per
Business
gram.
—
Underwriter—Dallas
pro¬
Manufactures household furniture.
Rupe & Son, Inc., Dallas, Texas.
Ottilia Villa,
Inc., Las Vegas, Nev.
(letter of notification) 3,000 shares of capital
Price—At par ($100 per share).
Proceeds—For
Aug. 16
stock.
South 5th St., Las Vegas, Nev.
Underwriter—Hennon &
Roberts, Las Vegas, Nev.
-
Pacific
International
Metals
&
Uranium,
Inc.
Aug. 12 (letter of notification) 12,000,000 shares of
Price—At par
stock.
Pacific
Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents). Price—10 cents per share.
"Proceeds
For mining expenses.
Office — 811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.
June 6
Paddock Of
common
rights offering, none; for stockholder offering,
Allyn & Co. Inc., Chicago, 111.
C.
A.
Quaker City Life Insurance Co. (11/1)
10 filed 82,500 shares of capital stock (par $10).
Price—To be supplied by amendment.. Proceeds — To
Oct.
certain
selling stockholders.
thers, New York.
Underwriter—Lehman Bro¬
Quaker State Foods Corp., Pittsburgh, Pa.
Oct. 6
(letter of notification) 15,000 shares of 7% cumu¬
convertible preferred stock.
Price—At par ($10
share).
Proceeds — To purchase machinery and
equipment and for working capital.
Underwriters—
Childs, Jeffries & Thorndike, Inc., Boston and New
per
York; and Syle & Co., New York.
Minerals, Inc., S. A.
Radium Hill
Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock (par one cent).
Price—32 cents per share. Pro¬
ceeds
For
—
expenses
incident
to
mining operations.
Colo. Underwriters—
Office—Bryant Bldg., Montrose,
General Investing Corp., New York, N. Y., and Shaiman
Co., Denver, Colo.
&
Ranco,
Oct.
14
Columbus, Ohio (11/3)
shares of common stock (par $5).
supplied by amendment.
Proceeds—To
Motors
Corp., which owns 616,950 shares
Inc.,
filed 400,000
Price—To
be
(61.7%) of the total shares. Business—Supplier of Tem¬
pressure controls for refrigerators, home
freezers and air conditioners and producer of heater
June 30 filed 400,000
Price—$1.25
per
shares of common stock (par $1).
share. Proceeds—For mining expenses.
Office—Denver. Colo.
Underwriter—None.
incident to
mining, operations.
Office—530 Main St., Groad Junction, Colo. Underwriter
—Columbia
expenses
Securities
Co.,
Denver
2,
Colo,
and
Salt
Lake City, Utah.
if Paria Uranium & Oil Corp.
17 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — Newhouse
Bldg., Salt Lake City, Utah.
Underwriter — Western
States Investment Co., Tulsa, Okla.
J
Oct.
—
Partridge Canadian Explorations, Ltd.
Sept. 21 (Regulation "D" filing) 500,000 shares of com¬
mon
stock (par $1).
Price—60 cents per share. Pro¬
ceeds—For exploration and development costs.
Office
—West Toronto, Ont., Canada.
Underwriter — Hunter
Securities Corp. and M. J. Reiter Co., both of New York.
,
Underwriter—Smith, Barney & Co, New York.
Estate
Clearing House, Inc.
Sept. 14 (letter of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and 135,000 shares
of common stock (par five cents) to be offered in units
of
Pandora Uranium Mines, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.
Proceeds—For
dustry.
Real
(Republic of
Panama)
two
stock.
shares
preferred
and
one
share of
stock
to
be
offered
to
stockholders
on
a
basis
of
on
share for each four shares held.
Price—($29 per share)
replenish working capital due to losse
Proceeds—To
Underwriter—None
*
Saint Anne's Oil Production Co.
May 9 (letter of notification) 20,000 shares of common
(par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
related activities. Office—North
wood, Iowa. Underwriter
San Jacinto Petroleum Corp.,
Houston, Texas
Sept. 20 filed 500,000 shares of common stock (par $1)
Price—$15 per share. Proceeds—For payment of shor
term loans and other
indebtedness; and for general cor¬
Underwriter—None, sales to be mad
privately through
Redondo
per
unit.
Office—161
Co.
Tile
Oct. 5 filed $875,000
of 5%% subordinated sinking fund
debentures, due Oct. 1, 1970, and 306,250 shares of
common stock
(par $1), to be offered in units of $500
of debentures and
$675
per
bank
tal
unit.
175 shares of
common
stock.
Price—
Proceeds—For retirement of short-term
indebtedness; balance for additional working capi¬
general corporate purposes. Office — Redondo
and
Beach, Calif. Underwriters — Dempsey, Tegeler & Co.,
Louis, Mo.; William R. Staats & Co., Los Angeles,
Calif.; Rauscher, Pierce & Co., Inc., Dallas, Tex.; Revel,
Miller & Co., Los Angeles, Calif.; Russ & Co., San An¬
tonio, Tex.
_St.
Republic Benefit Insurance Co., Tucson, Ariz.
a dividend trust and stock
Sept. 30 filed 150,000 units in
Lake
tees.
agreement
to
be offered
to
certain
mem¬
bers of the general public who are acceptable applicants
and who are to become active policyholders in the com¬
pany.
Price—$2
per
unit.
Proceeds—For
general
cor¬
officers
of
the
Statement
San Juan Racing
Association, Inc., Puerto Rico
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per
share, of 200,000 shares for subscription by
1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
derwriter—None.
Hyman N. Glickstein, of New York
City, is Vice-President.
stockholders of record April 30,
San Juan Uranium
Aug.
19
common
share.
per
Exploration, Inc.
(letter of notification)
assessable
925,000
Proceeds—For expenses
Office
shares of
non¬
stock (par one cent).
Price—12 cents
incident to mining
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
—
Sandia Mining & Development Corp.
Sept 9 (letter of notification) 3,000,0001 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds
For mining expenses.
Office
Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
—
—
Santa Fe Uranium & Oil Co., Inc.
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations. Office—416 Indepen¬
dence Bldg., Colorado Springs, Colo. Underwriter—Co¬
lumbia Securities Co., Denver, Colo.
Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds
—
For
prepayment of outstanding 5 ¥2% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer—Barrett Herrick &
Securities
Co., Inc., New York City.
Acceptance
Oct. 10 (letter of notification)
Corp.,
Omaha, Neb,
5,000 shares of 5% cumu¬
lative preferred stock (par $25).
Proceeds—For working capital.
Omaha, Neb.
Price—$26.25 per share.
Office—304 S. 18th St.,
Underwriters—Cruttenden & Co., Chicago,
111.; Wachob-Bender Corp., Omaha, Neb.; and The First
Trust Co. of Lincoln, Lincoln, Neb.
if Security Savings Life Insurance Co.
Oct.
17
(letter of noification)
preorganization subscrip¬
(par $1). Price
capital and surplus.
To be held in escrow until $100,000 is raised.
Organizers
—Leonard F. Kiker, 41 So. Lawrence
St., Montgomery,
Ala., and Hubert L. Benson, P. O. Box 245, Lanett, Ala.
tions for 120,000 shares of common stock
—$2.50
per
share.
Proceeds—For
Underwriter—None.
Shenandoah
Gas
Co., Lynchburg, Va.
Sept. 19 (letter of notification) 1,000 shares of common
stock (par $1). Price—$7 per share. Proceeds—To James
L.
Carter,
President, who is the selling stockholder.
Krise Bldg., Lynchburg, Va. Underwriter—
Scott, Horner & Mason, Inc., Lynchburg, Va.
Office—315
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
June 20
porate purposes.
Proceeds—For mining expenses.
Leo
Moab, Utah.
Underwriter—None; to be offered by
Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬
company.
effective Oct. 10.
common
Proceeds—For working
West 54th Street, New York,
N. Y.
Underwriter—Choice Securities Corp., 35 East
12th Street, New York, N. Y.
procurement
of
Price—$2.05
capital, etc.
Pelican Uranium Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
ftock (par five cents). Price—10 cents per share. Pro¬
ceeds— For mining expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern Brokerage Co., New Orleans, La., and Salt
City, Utah.
Rogers Corp., Rogers, Conn.
(letter of notification) a minimum of 5,883 share
and a maximum of 7,453 shares of class B commo
Oct. 3
activities.
temperature control requirements of the automotive in¬
Panama
if Rocky Mountain Standard, Inc.
8 (letter of notification) 1,886,668 shares of com
stock (par one mill).
Price — 15 cents per share
Proceeds—For mining expenses.
Address—P. O. Bo
187, Boulder, Colo. Underwriter—None.
June
lative
8400 Santa Monica
Blvd., Los Angeles, Calif. Underwriter
Co., Beverly Hills, Calif.
Proceeds—For
mining operations.
Office—530
Judg
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri
ca
Securities, Inc., of Utah, 26 W. Broadway, Salt Lak
City, Utah.
porate purposes.
Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment expense.
Office
—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
perature and
—T. R. Peirsol &
Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of cap
ital stock (par one cent).
Price—Five cents per share
—None.
for the account of two selling stockholders.
stockholders, at par ($2 per share); to pub¬
lic, $20 per share. Proceeds—For working capital and
other general corporate purposes.
Underwriter — For
(par $1). Price—$5 per share. Proceeds — For
liquidation of bank loan and working capital. Office—
riock
Rocket Mining
July 15
publicly
American
California, Los Angeles, Calif.
capital
Price—To
—
Sept. 28 (letter of notification) 60,000 shares of
working
Underwriter—Cruttenden & Co., Chicago, 111.
stock
com¬
(one cent per share). Pro¬
ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake City, Utah.
Underwriter—
Guss Securities Co., Salt Lake City, Utah.
mon
additions and the purchase of additional
equipment, fo
the purchase of land to be developed as a new sub
division in Richmond, Ind., and for
being of¬
fered for subscription by stockholders of record Oct. 20
at the rate of two new shares for each share held (with
an oversubscription privilege); rights to expire on Nov.
21.
Of this total 45,500 shares were on Oct. 21 offered
June 8
(letter of notification) 265,000 shares of common
stock (par 50 cents). Price—$1 per share.
Proceeds—
•For uranium and oil exploration. Office—Fortune Arms
the company and 60,000 shares for the account of tw
selling stockholders. Price—To be supplied by amend
ment.
(Proposed maximum offering price is stated t
be $5 per share.)
Proceeds*—Te prepay a mortgage note
for the organization of a wholly owned
acceptance cor
poration to be used for financing purposes, for plan
of capital stock
company
Oasis Uranium & Oil Corp., Fort Worth, Texas '
Thursday, October. 27, 195
★ Richmond Homes, Inc., Richmond, Ind. (11/14)
Oct. 25 filed 140,000 shares of common stock
(par $1)
of which 80,000 shares are to be sold for the account o
sustained in recent flood.
Co.
100,000 shares
29 filed
Sept.
Insurance
<
.
mon
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and 60,000 shares
of common stock (par 10 cents) to be offered in units of
one
share of each.
Price—$5 per unit. Proceeds—For
•
.
ver,
Colo.
Office
6 Kirby St.,
Underwriter—Skyline Securities Inc., Den¬
—
.Volume 182
•
Number 5476
Southern
Sept.
Berkshire
.
The Commercial and Financial Chronicle
..
Power
&
Electric
Tennessee Life & Service Insurance Co.
Co.
19
(letter of notification) 1,220 shares of capital
being offered for subscription by minority stock¬
stock
holders
the
on
held
shares
basis
of
as
of
one
new
share
each
for
two
Oct.
13; rights to expire on Oct. 28.
An additional 13,964 shares will be purchased by New
England Electric System, the parent, which now owns
27,928 shares (91,965%) of the outstanding shares and
has offered to purchase the holdings of all minority
stockholders at $25 per share (including 2,256 shares of
7.43% owned by New England Gas & Electric Associa¬
tion.
The
balance
of
the
shares
Price—At par ($25 per share).
struction. Underwriter—None.
Southern Co.
Sept.
30
is
held
by 11 holders.
Proceeds—For new con¬
(11/1)
1,507,303 shares of common stock (par
$5) to be offered for subscription by common stockhold¬
ers
of record Nov.
1
on
the
basis of
one
share for
new
each 12 shares held; rights to expire on Nov. 22.
rants
be
expected to be mailed
are
named
bank
by
loans
company
and
Nov. 2.
on
Oct. 31.
on
investment
for
War¬
Price—To
Proceeds—To repay
in
additional
stock
of
subsidiary companies. Underwriter — To be determined
by competitive bidding.
Probable bidders: The First
Boston Corp., Ladenburg, Thalmann & Co., Carl M. Loeb,
Khoades & Co. and Wertheim & Co.
(jointly); Blyth &
Co., Inc., Bear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬
ties Corp. (jointly); Lehman Brothers; Morgan Stanley
& Co.; Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane. Bids — To be received up to
11 a.m. (EST) on Nov. 1, at Room 1600, 250 Park Ave.,
New York 17, N. Y.
Southern Mining & Milling
Co., Atlanta, Ga.
Sept. 14 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For expenses incident to mining activities. Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter — Franklin Securities Co.,
Atlanta, Ga.
England Telephone Co.
Sept. 21 filed 543,209 shares of capital stock
being offered for subscription by stockholders
Sept. 28, 1955 in the ratio of one new share
nine shares then held; rights to expire on Oct.
share.
per
American
22%
Proceeds—To
repay
(par $25)
of record
for each
28. Price
advances
from
Telephone & Telegraph Co.
of outstanding stock).
(owner of about
Underwriter—None. Blyth
Ac Co., Inc., on Oct. 6 won award of 1,173,690 rights to
subscribe for 130,410 of the afore mentioned shares, and
reoffered
shares
(letter'of notification) 9,200 shares of common
itock (par $5) to be offered for
subscription by stock¬
them
to
the
public at $41 per share. These
rights received by American Tele¬
represented
Southwestern Financial Corp.
Sept. 6 filed 770,000 shares of common stock (par 10
cents), to be offered for subscription by stockholders at
rate of two new shares for each share held (with an
oversubscription privilege).
Price—To be supplied by
amendment.
Proceeds—For purchase of machinery and
and
for
corporate purposes.
the working capital
Office—Dallas, Texas.
general
Underwriter
and
—Rguscher, Pierce & Co., Dallas, Texas; and Russ & Co.,
San Antonio, Texas.
Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For expenses incident to mining activities.
Office—
1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.
Summit
Springs Uranium Corp., Rapid City, S. D.
Oct. 3 (letter of notification) 1,200,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For expenses incident to mining operations. Office—
Harney Hotel, Rapid City,
Brickley, same address.
S. D.
Underwriter—Morris
Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,750,000 shares of non¬
assessable common stock
(par two cents). Priee—10
Sunburst
Sept. 6
cents per share.
Proceeds — For expenses incident to
mining activities. Office—116 Atlas Building, Salt Lake
City, Utah. Underwriter—Mid America Securities, Inc.
of
Utah,
City.
same
Susan B. Uranium
Aug.
11
Corp., Carson City, Nev.
(letter of notification)
assessable
common
stock.
300,000 shares
of non¬
Price—At par ($1 per share).
Proceeds—For
mining expenses. Office—Virginia Truck
Bldg., Carson City, Nev.
Underwriter—Coombs & Co.
of Las Vegas, Nev.
Swank Uranium
Drilling & Exploration Co.
Aug. 17 (letter of notification) 3,000,000 shares of
mon
com¬
Price—At par (10 cents per share). Proceeds
expenses incident to mining activities.
Office—
stock.
—For
Moab,
Utah.
Underwriter—Honnold
&
Co.,
Inc.,
Salt
Lake City, Utah.
Sweetwater
Uranium
Co.
Sept. 9 (letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—635 Judge
Bldg.,
Salt Lake City, Utah. Underwriter—Skyline Securities,
stock
Inc., Denver, Colo.
Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.
Proceeds
For mining expenses.
Office — 726
Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State Bldg.,
Spokane, Wash.
—
Paulsen
Tasha Oil & Uranium Co.,
May 11
mon
Denver, Colo.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
stock
mon
Texas Western Oil &
June 15 (letter of
Houston, Texas.
Uranium Co., Denver, Colo.
notification) 5,960,000 shares of
stock (par one cent). Price—Five cents
per share.
Proceeds—For mining expenses. Office — 407 Denver
National Bldg., Denver, Colo.
ter & Co., same address.
Underwriter—Floyd Kos-
★ Theatre Corp. of America
(letter of notification) 60,000 shares of common
(par $1). Price — $5 per share. Proceeds — For
working capital.
Office—9 East 46th St., New York,
Oct. 21
stock
N. Y.
Business—Participations in ventures in and relating
to the fields of entertainment.
Underwriter—None.
★ Three Forks Oil & Uranium Co.
Oct.
17
(letter of notification) 2,000,000 shares of com¬
(par two cents). Price—15 cents per share.
mining expenses.
Office—803 Lincoln
Ave., Steamboat Springs, Colo. Underwriter—None.
mon
stock
To
corporate
United
purposes.
Aircraft
Underwriter—Mickle
&
Co.»
Corp.
Sept. 27 filed 243,469 shares of 4% convertible prefer¬
ence stock
(par $100) being offered for subscription by
stockholders of record Oct. 18, 1955 on the basis
preference share for each 20 shares of common
common
one
stock
held; rights to expire
share.
Proceeds—For
derwriter—Harriman
on
Priee—$100 per
Nov. 1.
general corporate
purposes.
Un¬
Ripley & Co., Inc., New York.
United American Investment Co., Atlanta, Ga*
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
.
balance to be used to engage in mortgage loan
related fields. Underwriter—None.
busines®
Proceeds—For
and
★ Toro
Sept. 23 (letter of notification) 2,800 shares of 6% con¬
vertible preferred stock class B.
Price—At par ($100
per share).
Proceeds—For licensing purposes in order
to operate in other jurisdictions. Office—810 First
Ave.,
Manufacturing Corp., Minneapolis, Minn.
Oct. 25 filed
be
the
42,099 shares of
stock (par $1)
common
to
offered for subscription by common stockholders on
basis of one new share for each four shares held.
Price—To
United
Fire
be supplied by amendment.
Proceeds—For
working capital, etc. Underwriter — Piper, Jaffray &
Hopwood, Minneapolis, Minn.
N.
Trans-National Uranium & Oil Corp.
July 1 filed 1,200,000 shares of common
trust
bonds
tures
of
stock
(par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
Office
Dallas, Tex. Underwriter — Garrett Brothers,
Inc., Dallas, Tex.
Traveler Publishing
Co., Inc., Philadelphia, Pa.
(letter of notification) $247,000 of 5J/2% con¬
Sept. 29
vertible debentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
in units consisting of $1,000 of debentures and
100
shares
of
common
stock.
Price—$1,010
per
unit.
Pro¬
ceeds—For payment of indebtedness, expansion/ estab¬
lishment of additional offices; professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
writer—Albert C. Schenkosky, Wichita, Kansas.
Travelfares, Inc., Seattle, Wash.
Sept. 14
(letter of notification)
assessable
common
stock.
100,000
Price—At par
shares of non¬
($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
Price—At par (50 cents per share). Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
jtock.
Tri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank
L. Edenfield & Co., Miami, Fla.
Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants).
Price—At par (in denominations of $100 each
multiples thereof). Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Evans & Co.. Kansas City, Mo.
or
Tungsten Mountain Mining Co., Fallon, Nev.
(letter of notification) 149,800 shares of common
stock (par $1). Price—$1.50 per share.
Proceeds—For
mining operations. Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
.
June 8
Two Jay Uranium Co., Salt Lake
City, Utah
States
Investment
Ucon
Co., Tulsa, Okla.
Corp., Salt Lake City, Utah
June 2 (letter of notification) 5,b00,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining costs.
Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
U-Kan Uranium & Oil Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses. Office — Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
stock
Union
Oct.
13
Corp. of America
(11/3)
filed
797,800 shares of common stock (no par).
Price—Proposed maximum offering price per unit is $5
per share.
Proceeds—To acquire one life and one fire
insurance company, and one mortgage
loan firm. Under¬
writer—None; shares to be sold through directors and
officers.
Underwriter—None.
Corp. (11/9)
filed $20,000,000 of first mortgage and collateral
Oct. 11
due
securities of
eral
1975.
Proceeds—To
finance
expendi¬
and
subsidiary; purchase additional
Escambia Bay Chemical Corp. and for gen¬
company
corporate purposes.
Underwriter — To be deter¬
by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; White, Weld & Co. and Equitable Secu¬
rities Corp. (jointly); Harriman Ripley & Co. Inc. and
mined
Goldman, Sachs & Co. (jointly).
Bids—Expected to ba
received up to noon (EST) on Nov. 9, at Room
Rector St., New York, N. Y..
240, Two
United States Thorium Corp.
July 21
(letter of notification) 250,000 shares of capital
($1 per share). Proceeds—For gen¬
eral corporate purposes. Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.
stock. Price—At par
United
Wholesale Druggists of Fort Worth, Inc.
(letter of notification) 3,000 shares of common
stock (no par).
Price—$50 per share.
Proceeds—For
operating capital. Office—70 Jennings Ave., Fort Worth,
Oct.
17
Texas.
Underwriter—None.
Universal Service Corp.,
Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share. Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering —
Postponed.
Uranium
Properties,
Ltd., Virginia
City,
Nev.
June 13 filed $600,000 of Grubstake Loans to be offered
in amounts of $25 or multiple thereof.
Proceeds—75%
to be
invested in U. S, Savings bonds and the balance
equipment and exploration and development ex¬
penses. Underwriter—None.' Offering—Postponed.
for
Uranium Technicians
June
30
(letter
common
stock
Proceeds
—
State
St.,
of
Corp.
notification)
30,000,000 shares of
(no par).
Price—One cent per share.
mining activities. Office — 1101 South
Lake City, Utah. Underwriter—Acker-
For
Salt
son-Hackett Investment Co..
same
city.
Utah-Arizona
Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common,
stock (par 16% cents). Price—50 cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah.
Underwriter—
Trans-Western Brokerage Co., New Orleans, La.
Utah Grank,
Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
stock.
Price—At par ($1 per share).
Proceeds—For ex¬
incident to mining activities. Office—312 ByingReno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
penses
Bldg.,
Utah Southern Uranium Co.,
Price—At
stock.
Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital
June 6
mining
Vegas, Nev.
city.
par
expenses.
(10 cents per share). Proceeds—
Office—210 N. Third St., Las
L. LaFortune, same
Underwriter—Lester
Utore Uranium &
Diata, Inc., Vaie, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen.
Uranium Brokerage, Salt Lake City, Utah.
Van
Keuren
Funk, Inc., New Canaan, Conn.
(letter1 of notification) 200,000 shares of class B
common stock and 4,000 shares of class A common stock.
Price—At par ($1 per share).
Proceeds—For working
capital, etc. Office — 70 Elm St., New Canaan, Conn.
Oct.
17
Underwriter—None.
Vanura
June 16
mon
stock
Proceeds
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com¬
(par
—
one
cent).
Price
For mining expenses.
10 cents per share.
Underwriter — I. J.
—
New York. Name Change—The company
formerly known as San Miguel Uranium, Inc.
Schenin & Co.,
Sept. 9 (letter of notification) 600,000 shares of common
Union Gulf Oil &
(par 10
Casualty Co., Cedar Rapids, Iowa
E., Cedar Rapids, Iowa.
For
Uranium
&
United Gas
ton
(letter of notification) 3,000,000 shares of com¬
mon stock (par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
May 16
stock
of com¬
stock (no par).
Price—$1.25 per share. Proceeds—
reduce bank loans, and for development costs and
other
mon
Jaquith, Inc.,
city.
July 12
Gorn-
Proceeds—For mining operations. Office—1890 S. Pearl
St., Denver, Colo. Underwriter — Carroll, Kirchner &
same
Union of Texas Oil
Co., Houston, Texas
(letter of notification) 61,393 shares
Price—$30 per share. Proceeds—To increase
working capital for agency expansion. Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.
phone & Telegraph Co.
equipment;
ceeds—For mining expenses. Office—510 Colorado Bldg^
Denver, Colo. Underwriter—Honnold & Co., same city-
holders.
—
New
Southern
—$33
June 20
of
filed
41
(1789)
cents).
Mining Corp.
Price—50
cents
was
per
share.
Pro¬
Continued
on
page
42
42
(1790)
The Commercial and Financial Chronicle
Continued,
Vas
from
41
page
&
Uranium
Weld
—For
operations.
mining
Underwriter—Skyline
Secu¬
directors
rities Inc., Denver, Colo.
Wabash Uranium
small
Corp., Moab, Utah
Oct.
6,000,000 shares of non¬
common stock
(par one cent). Price — Five
share. Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,
stock
(par
through subscription
mon
for each five
Telephone
Co.
notification) 18,500
$10), to be offered
rights
the
on
basis
of
share
one
held.
Price—$12 per share; unsubscribed
shares to be purchased by investment bankers at not less
than $12 per share.
Proceeds—For expansion. Office-r-
Weaverville, N. C.
White Horse
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 2,900,000 shares of capital
stock (par 2V2 cents). Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth
West St., Salt Lake City, Utah.
Underwriter—J. W.
Hicks & Co., Inc., Denver, Colo. +
Wicker-Baldwin Uranium Mining Co.
May 26 (letter of notification) 900,000 shares of common
stock. Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth St., Rapid
City,
S. D. Underwriter—Driscoll-Hanson, Inc., same city.
•
Wisconsin
Oct.
to
20
be
filed
Southern
Gas
20,818 shares of
offered
basis of
one
for
Co.,
Inc.
(par $10),
by stockholders on the
subscription
four
shares held
as
of
Nov. 3; rights to expire on Nov. 29.
Price
$16.50 to
stockholders; and $17.50 to public. Proceeds—To repay
—
bank
loans
and
for
extensions
and improvements to
St., Lake Geneva, Wis.
Underwriters
The Milwaukee Co., Milwaukee,
Wis.;
and Harley, Haydon & Co., Inc. and Bell &
Farrell, Inc.,
both of Madison, Wis.
Office
property.
—
235
Broad
—
Sept.
7
(letter
assessable
of
stock.
expenses
150,000 shares of non¬
Price—At par ($1 per share).
incident
to
mining activities.
^Office—800 Denver Club
Building, Denver, Colo. Under¬
writer—Seligmann & Co., Milwaukee, Wis.
Wonder Mountain
Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock
(par
cent).
Price—10 cents per share.
incident to mining activities.
Office—414 Denver Nat'l
Bldg., Denver, Colo. Under¬
writer—Floyd Koster & Co., Denver, Colo.
Proceeds
—
one
For
expenses
Woods Oil
& Gas Co., New
Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of
debt;
revision
of
corporate structure, etc.
Underwriter
Straus, Blosser & McDowell, Chicago, 111. Offering—To
—
be withdrawn.
Wyoming-Gulf Sulphur Corp.
stock
activities.
Wyton Oil & Gas Co.,
Newcastle, Wyo.
Sept. 29 filed 254,000 shares of common stock
(par $1).
Price—At the market. Proceeds—To
August Buschmann,
Yellowknife
Uranium
of
his
family. Under¬
Corp.
Aug. 19 filed 1,000,000 shares of common stock
(par
cent), of which 700,000 shares are to be sold for
one
account
of company and
300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share. Proceeds—For
payments under purchase and
option agreements for
claims; for working capital and reserve
funds; and for
other
general
corporate
purposes.
Office
Toronto,
Canada. Underwriters—Gearhart
& Otis, Inc. and F. H.
Crerie & Co., Inc., both of New
York City. Offering—
Indefinitely postponed.
1
—
York Oil & Uranium Co.
(letter of notification)
10,000,000 shares of capi¬
Price—At par (two cents
per share). Proceeds
—For mining and oil
activities.
Address—P. O. Box
348, Newcastle, Wyo.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
tal stock.
Zenith-Utah Uranium
Corp.
Sept. 14 (letter of
notification)
A
common
stock.
mining
city.
RR.
the
6,000,000 shares off class
that
of
corporation,
Allen
B.
Du
following
Mont Labora¬
tories, Inc. of 944,422 shares of common stock as a
dividend, contemplates that additional shares will be
its
to
Co.
&
stockholders.
This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel
handled Du
nancing
some
Mont
years
Laboratories class A
Oct. 10 approved formation of
on
Essex
stock
fi¬
Stockholders of Laboratories
ago.
Broadcasting firm.
County Electric Co.
July 18 it
was reported company plans to issue and sell
additional first mortgage bonds. Underwriter—To
some
be determined
by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; The First Boston Corp,;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
*
Florida Power Corp.
was announced company
may issue and sett
between $10,000,000 and
$12,000,000 of first mortgage
bonds. Underwriters—To be determined
by competitive
bidding.
Probable
bidders:' Halsey, Stuart & Co.
Inc.*
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Feig¬
ner & Beane
(jointly); Lehman Brothers and
Blyth St
Co., Inc. (jointly); Glore.
Fopgan & Co,; and The First
Corp. Offering—Expected late in 1955 or early
outstanding 274,597 shares of 5% preferred
Not in excess of $28,874,564 of bonds
1956.
•
Ford
Sept.
Motor Co.,
19
it
was
non-voting
and
be
Nov.
the
reported
15.
bulk
It
of
is
is
offering of class A
expected between Oct. 15
that
the
3,089,908 shares
stock
now
be
to
held
sold
by the
will
Ford
Price—In March last,
offering price
share.
said
public
a
stock
common
Foundation.
the
Detroit, Mich.
it was reported that
expected to be around $60 per
was
.
■
•
.
-
SEC.
Business—Company, recently formed, is a
mining undertaking on Merrill Island, Quebec,
Canada. Underwriter—Allen &
Co., New York. Offer¬
ing—Not expected for three
Bids
or
four weeks.
expected to be received by the company
up to
(EST) on Nov. 3 for the purchase from it of
$4,800,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler;
Kidder, Peabody & Co.
•
Chicago, Rock Island & Pacific RR.
(11/8)
Bids will be received by the
company up to noon (CST)
on Nov. 8 at Room
1136, LaSalle Street
Station, Chicago
$2,952,000 equipment
certificates, series P. to
be dated Dec. 1, 1955, and
equal semi-annual installments from
June 1, 1956 to Dec.
1, 1967. Probable bidders: 'Halsey,
mature
in
24
Stuart & Co.
Inc.;
Peabody & Co.
• Columbus
Oct.
it
25
&
was
Salomon
Southern
announced
Bros.
Ohio
&
Hutzler;
Electric
& Hutzler and Union
Securities
Corp. (jointly); Kuhn,
Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(joints
ly); Stone & Webster Securities Corp.
Loeb & Co.
•
Hawaii*
Oct.
24
and
A.
C.
(Territory of)
it
was
(11/2)
announced
that it is planned to sell
$7,500,000 20-year general obligation bonds.
Proceeds
For school
construction, etc. Bids — To be
received up to 10 a.m.
(EST) on Nov. 2, at Bankers
Trust Co., 46 Wall St., New
York, N. Y.
issue
an
of
—
Heller
(Walter E.)
& Co.
July 18 it was reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt
Co.
that
shares.
common
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co.
Inc.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner St
Beane and White, Weld & Co.
(jointly); Salomon Bros;
Kidder,
contingent on favorable
market conditions the
company plans to sell to under¬
writers early in December a maximum of
250,000 new
Proceeds—To finance electric plant ex¬
Read & Co. Inc., New
York; and The Ohio Company, Columbus, Ohio.
pansion.
May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
bidding.
are
5, 111., for the purchase from it of
Gulf States Utilities Co.
permit.
(11/3)
noon
Underwriters—Dillon,
Consolidated Edison Co. of New
York, Inc.
14 it
was
announced company expects
to sell
from $40,000,000 to
$50,000,000 bonds some time during
the current year. Proceeds—For
construction program.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; The First Boston Corp.
Bank Loan-—
June
& Co.
Inc., New York.
Houston
(Texas)
Gas & Oil Corp.
applied to the FPC for authority to
construct a 961-mile pipe line from a
point near Baton
Rouge, La., to Cutler, Fla., to cost approximately $110,—
382,000. "It plans to issue and sell $81,200,000 of bonds,
Aug. 26,
company
about $20,000,000 of 5 V2 % interim notes
(convertible into
preferred stock), and over $8,700,000 of common stock.
Stock would be sold, together wit-h the notes, in units.
Underwriters—Discussions are reported to be going on
with Blyth & Co.,
Inc., San Francisco, Calif., and Scharff
&
Jones, Inc., New Orleans, La.
granted company
Kayser (Julius) & Co.
Aug. 17, it as announced company plans an offering of
stock to its shareholders and
borrowing through long-
Craig Systems, Inc.
Sept. 26 it was reported company plans
early registra¬
tion of 175,000 shares of common
stock, of which 50,000
loans.
Proceeds
To finance acquisition,
through purchase, of the net current assets of Holeproof
Hosiery Co. (latter's stockholders approved proposal
on
Sept. 6).
loans, totaling $100,000,000
run to Oct.
9, 1956.
were
Oct. 4 to
are
to be sold Aor the account of the
company and
for account of certain
selling stock¬
Underwriter
—
York.
Daitch Crystal
Oct. 17 it
ing
of
Hemphill, Noyes & Co., New
Dairies, Inc.
announced company
was
subordinated
debentures.
plans
a
public offer¬
Proceeds—Together
with funds to be received from
institutional loan, to be
used in connection with
proposed merger with company
of Shopwell
Foods, Inc., and for expansion program.
Underwriter—Hirsch & Co., Inc., New York.
•
Delaware
Power
&
Light Co.
(12/13)
Sept. 28 it was announced company plans to sell
by midDecember $10,000,000 of bonds and
$5,000,000 of preferred
stock and also expects to undertake
some
financing early in 1956. Proceeds—To
and for construction
program,
which will cost
common
repay
&
Co.
and
Salomon
(which may be first offered to stockholders)—W.
Langley & Co. and Union Securities Corp.
Fenner
Peabody
&
Beane
&
Co.
and
Merrill
C.
(jointly);
Lynch, Pierce,
(jointly); Carl M. Loeb, Rhoades &
Co., Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co. (joint¬
Underwriter—Bel-Air Securities Corp.,
ly):
&
Blyth
&
Lehman
Laclede
Brothers.
(3) On preferred stock—Blyth
Co., Inc. and The First Boston Corp. (jointly); White,
—
Gas Co.
was
stated company plans sale of about $10,-
000,000 convertible first preferred stock to stockholders.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Lehman
Brothers, Merrill Lynch,
Pierce,
Fenner, &
Beane
and
Reinholdt
Gardner
&
(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated. Bids—Probably
this
fall.
New
Jersey Bell Telephone Co.
Sept. 30 it
was
announced
(12/14)
has petitioned the
company
New Jersey P. U. Commission for authority to issue and
sell $25,000,000 of new debentures due 1955. Proceeds—
For
expansion program.
Underwriter
mined by competitive bidding.
—
To
be
deter¬
Probable bidders:
Hal¬
Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Boston Corp.; Shields & Co.; Kuhn, Loeb & Co.; White,
Weld & Co. Bids—Expected to be received on Dec. 14.
Registration—Planned for Nov. 18.
sey,
New
Bros.
& Hutzler
(jointly);
Brothers; Union Securities Corp.; The First
Boston Corp. arid Blyth &
Co., Inc. (jointly); White,
Weld & Co. and Shields & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
bank
Aug. 8 it
stock
bank loans
wnich includes two plants
approximately $40,000,000. Underwriters
—To be determined
by competitive bidding. Probable
bidders: (1) For
bonds—Halsey, Stuart & Co. Inc.; Kuhn,
Loeb
term
shares
holders.
Kidder,
par
announced
was
Boston
copper
Co.;
ex¬
Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about
150,000 shares of common stock will be registered with
(five cents). Proceeds
Office—45 East Broadway, Salt
expenses.
Lake City, Utah.
same
Price—At
early registration is
Lehman
June 3
—For
Maine
.
April 14 it
that
would be issued.
125,000
writer—None.
Corp.
reported
(par $100).
shares
Price—On the over-the-counter market
at
Seattle, Wash., and members
&
each of the
then
of
was
Oct. 20
10 filed 971,000 shares of
capital stock (par 10
cents), of which 700,000 shares are for
company's ac¬
count and 271,000
shares for account of two
selling
prevailing price, but not less than $2 per share.
Proceeds—For auxiliary
equipment for Cody plant, for
acquisition of additional site, and related
common
stockholders approved a plan to offer
$105 prin¬
cipal amount of series B 5% income debenture
bonds
(plus 5% interest for the year 1955) in exchange for
on
Oct.
stockholders.
Steel
12 it
Boston
Bank
.
authorized
New York.
to
notification)
common
Proceeds—For
Corp., Denver, Colo.
the
pected of $8,000,000 of subordinated debentures due 1970.
Proceeds—Together with funds from private sale of $3,000,000 of notes or debentures, to be used for general
corporate purposes. Underwriter—Lee Higginson
Corp.,
trust
Wolfson Uranium
increase
• Chesapeake & Ohio Ry.
stock
common
share for each
new
Barium
Sept.
•
June 9
proposal to
a
1,400,000 shares to 2,400,000 shares to provide
for exchange of stock for
minority shares to Plywood,
Inc., for conversion of proposed new debentures and for
possible future acquisitions of property. Underwriter—
May be Van Alstyne, Noel & Co., New York.
Underwriter—None.
it
Dec. 13.
issuance to stockholders
was
inventory and to retire subsidiary indebt¬
Meeting—Stockholders will vote Nov. 2 on ap¬
proving
-
shares of com¬
to stockholders
10
on
Broadcasting Corp.
derwritten.
stock from
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.
of
Aug.
than
Plywood Corp.
12 it
edness.
per
Carolina
more
—To increase
Sept. 29 (letter of notification)
(letter
(not
year.
reported company plans to issue and sell
$3,000,000 of 5% sinking fund debentures and $3,000,000
of 5V2% convertible subordinated
debentures., Proceeds
assessable
10
stock
common
offered
Atlas
Mining Co., Birmingham, Ala.
Western
of
York.
mining expenses.' Underwriter—Moab Bro¬
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.
Oct.
amount
Du Mont
75,000
Underwriters—Probably Union
Securities Corp. and
Smith, Barney & Co., both of New
ceeds—For
cents
L.
shares) early next
June 10 (letter of notification) 10,000,000 shares of capi¬
tal stock. Price—At par (three cents per share).
Pro¬
Warrior
City Electric Co.
England, President, announced that the
are now
considering the sale to the public of a
1, B.
Thursday, October 27, 1955
.
Co.
to be received
Atlantic
Aug.
.
and
Shields & Co.
(jointly); Lehman
Brothers; W. C. Langley & Co.' and Union Securities
Corp. (jointly); Morgan Stanley & Co. Bids—Expected
Prospective Offerings
Drilling Co., Monticello, Utah
June 20 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
&
.
Jan.
York Telephone Co.
Keith S. McHugh, President, announced that
will have to raise more than $100,000,000
17,
the company
of
new
sion
capital money to aid in carrying out its expan¬
and
improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For any bonds,
to
be
determined
by competitive bidding.
prooaoia
bidders: Morgan Stanlev & Co.: Halsev Stuart & Co. Inc.
* North Shore Gas Co.
(Mass.)
(12/7)
Oct. 25 it was announced company plans to 'register
with SEC early in November an issue of $2,500,000 first
mortgage
bonds,
series B,
due
1975.
Proceeds
—
For
construction program, etc.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Volume
Number 5476
182
.
..
The Commercial arid Financial Chronicle'^
v
Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly); Blair &
Co. Incorporated. Bids—Scheduled to be received at 441
Stuart St., Boston
Northern
Sept.
it
30
16, Mass.,
Dec.
on
7.-
Radio
ceeds
Pacific Ry.
was
for
ments
States
it
1955
Oct.
Power Co.
(Minn.)
that new capital require¬
approximate $31,000,000.
Present
these funds will be obtained tem¬
ly); Smith, Barney & Co.; Lehman Brothers
& Co. (jointly); Glore, Forgan & Co.
★ Northrop Aircraft, Inc. - ■
25, Whitley C. Collins, President,
Oct.
capital
and
other
the
was
•
.
.
>
Pike
Oct.
it
was
$600,000 of
common
purposes
of
several
million
dollars."
Sept. 20 it
Stockholders
additional
an
bonds, but
it has
Oct.'
on
head
a
$25,000,000 first
shares
convertible
debenture
issue.
directors any time
within
months.
writer—Probably Smith. Barney & Co..
chiefly
to
Our
the
ing
put
the
on
to be
are
new
this
week
fraternity
stop
underwriting
the
as
from
coast
moved to the task of
biggest
revenue
has
come
yet
It
sponsoring
Service
Power
recent
Electric
&
coast
issue
that
to market.
Light
that
groups
offerings
Southern
the
as
bond
indicated
was
to
handling the
such
Bell's,
Public
Gas,
to
market
back
offer¬
and
only
by
up
the
to
pro¬
project, taking
vestor
instance
interest
was
in¬
reported
lagging and that
shares
of
new
common
l-for-12 basis. Bids to handle
was
really
in the case
Commonwealth
ported to be still
were
re¬
bit less than
a
sold.
corporate
new
of
issues
interest
was
in
ascribed
l-for-15 basis to holders of
ord
Nov.
not
too
rec¬
Thin Fare Ahead
much
40-year
well
its
week
ago,
for this
size
undertaking despite
sporadic litigation in
and
which it had
been involved.
a
fort¬
single
the
new
Except
for
a
small
equity picture is jaded.
United
to
Gas
market
Corp.
equipment
trust
$4,800,000,
slated
to
to
But
"s t
on
be
reach
of
certificates,
which
opened
a
issue
on
bids
are
Thursday,
corporate debt issue
market next week.
underwriters
will
be
kept
the
busy side with several big
a n
d b y" operations involving
equity
offerings with preemptive
on
is
for
a°
Nov.
real
of
basis of 101.421 for
indicated yield of 3.30%.
20-year
collateral
of
of
pointed
last several
issues
new
out
weeks,
has
market,
several
regarded
the
He
Jackson
&
Curtis.
.
Joins Merrill
with
the
undertakings
as
\
Merrill
Lynch,
Pierce,
Fenner &
Beane, 48 East Gay Street.
Joins
result that
have
Lynch
(Special to The Financial Chronicle)
been
rather "fully" priced.
Draper Sears
(Special to The Financial Chronicle)
BOSTON,
Mass. — Daniel a J.
has become associated
Sweeney
Now With Westheimer
with Draper Sears & Co., 50 Con¬
gress
(Special to The Financial Chronicle)
following
Street, members of the New
Exchanges.
York and Boston Stock
CINCINNATI, Ohio—Robert O.
debt
New England Telephone &
Telegraph Co. is slated to open
of
Exchange.
formerly with Paine, Webber,
successively closer to the prevail¬
banking
tiated sale and
members
Stock
been
trust
week brings up
offerings, one by nego¬
the other by com¬
petitive bidding. National Tea Co.
will market $15,000,000 of sinking
fund,
subordinated,
convertible
debentures, due in 1981.
two
observers
the
over
pricing
competition in this instance.
The
was
Company, Huntington
Building,
York
New
Lenox H.
COLUMBUS, Ohio — LeRoy E.
Freter has become affiliated with
9 and the prospect
show
Bank
—
associated with
an
a
Market
ing
is scheduled
$20,000,000
mortgage
bonds
Ohio Railway
Vercoe and
price of 100.80 for a 3%% interest
Reoffering was expected to¬
that
become
took down the bonds at a
group
day on
Even the ensuing week,
first
-Complete Blackout
Lighting Issue
:
rate.
it was indicated
that preliminary inquiry augured
on
tapering off
yield
a
a
has
Rand
mortgage bonds attracted a num¬
ber of
bids, and the successful
debt issue will be up
for bids in that period. But even
A
due
which
COLUMBUS. Ohio
to be offered on
common
(Special to The Financial Chronicle)
designed to fund
are
Long Island Lighting Co.'s $15
million
of
new
30-year,
first
large
night hence, promises only limited
activity
speaking
generally.
A
Corp.'s
The
the
contemplates tha
new series of its
Now With Vercoe & Co."
existing floating debts.
standby is
Edison's 1,110,375
second
ma¬
of New York State Electric & Gas
bonds
$30,000,000 of debentures,
L. I.
companies and trust
with
concerned
a
mortgage bonds, in an aggregate amount not yet
Proceeds—To pay
for new construction
probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.: A. C. Allyn & Co. Inc.; White^
Weld & Co. and Shields & Co. (jointly).
It is also
undertakings
a
attractive
turity.
there is not
half
proved
were
of
and
1,507,303
on
negotiated basis.
which
company
and sale later this year
due 1991. Both the aforementioned
on a
funds
Co., York, Pa.
announced
was
bids for
The
affording
Chesapeake &
one
(52.8%). The time in which
sell their holdings has been extended by
rights to present holders. First of
ing handled
Mills issues had found the market
In
it
29
issuance
Proceeds—For working capi¬
operation is be¬
insurance
'
first
This
Burlington
receptive.
June
some
Underwriter—Dean Witter & Co., San
1.
to
-
Westpan stock
may
York County Gas
shares of
rate,
•
announced Sinclair Oil Corp. has agreed
was
these is Southern Co.'s offering of
competition.
naturally
•
SEC to Dec. 21, 1955. Underwriter—Union Securities
Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co. White, Weld &
Co., New York, may be included among the bidders. "
preferred issue.
reported company may be planning
publicly offered.
in-'
of
sit
Pacific
&
of
Sinclair
Nevada Telephone Co.
just about the complete resources
of the underwriting industry, was
priced at par and carried a 3%%
full
a
shares
convertible
interest
to
110,000
of
day.
that
'
Westpan Hydrocarbon Co.
Office—Buffalo, N. Y.
enormous
This $415 million
just about ground
owned, regardless of class.
'
issue of 500,000 shares of first preferred stock (par $10),
of which 300,000 shares (to be convertible into common)
offering set
an
real
*
approved a plan authorizing the
additional 128,597 shares of common stock
the business will be opened Tues¬
vide
The corporate new issue market
an
March 2 it
issuance
mission,
Report
Maryland Ry.
stockholders
10
with the SEC to divest itself of its investment of 384,380
will not underwrite the
was
(12/6)
was
changing the par value of the common shares from
$100 per share to no par value. The plan calls for the
offering to each stockholder of the right to purchase
one new common share for each six shares of stock now
Co.
authorized
Illinois State Toll Highway Com¬
Reporter's
Curtis, Boston, Mass.
issuance of
June 6 the stockholders voted to approve an authorized
disposition
investors
wait for
of
determined.
tal.
and
payment
on
and
Sterling Precision Instrument Corp.
Under¬
the
27,500 addi¬
basis of
400,000 shares of $2.28 convertible preferred
(cumulative to the extent earned). Proceeds—•
acquisitions. Underwriter—Paine, Webber, Jackson
Oct.
Francisco, Calif,
New York
stitutional
Oil & Gas
cumulative
public financing.
would not exceed
at the discretion of the
12
of
Oct. 10 it
This
the next
III.
'
Southern
Pure Oil Co.
April 9 stockholders approved the possible Issuance of
$50,000,000 and would be issued
for
1
Merrill, Lynch, Pierce, Fenner & Beane.
Proceeds—For exploration
it is stated,
;
a
from
preferred stock (par
and drilling program,
etc. Underwriter—Previous common stock financing was
handled by Hunter Securities Corp., New York, who
bonds.
(Colo.)
given the
were
announced that company plans to Issue
and sell 125,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Stone & Webster Securities Corp.;
stock
common
stockholders
30
$10).
before Nov.
or
Virginia Electric & Power Co.
that the company plans the
announced
was
South Texas
company announced
11
it was announced stockholders on Nov. 30 will
approving a change in name of company to Van
Industries, Inc. and on creating an authorized
Aug. 2 it
20
Aug.
Oct.
stock
-
Halsey, Stuart & Co. Inc., is reported to
to bid for approximately $25,000,000 of
group
indebtedness to $150,000,000
Proceeds—For expansion program.
geles, Calif.
or sell any bonds under
this mortgage.
The company has scheduled a largescale expansion program,
involving $80,000,000 in order
to keep abreast of estimated load
growth over the next
five years. Underwriters —
Probably Stone & Webster
Securities Corp., The, First Boston Corp. and
Smith,
Barney & Co.
on
issue
(par $1) and bank bor¬
rowings to finance the proposed purchase of all of the
outstanding stock of Holly Manufacturing Co. of Pasa¬
dena, Calif., for $3,000,000 cash. The transaction must be
closed by Dec. 15,- 1955 (Subject to extension to Jan:* 15,
1956). Underwriter—William R. Staats & Co., Los An¬
present plans to issue
no
authorized
sale of additional
in 1955 to obtain funds for construction
from outside sources—at least to the extent
record
stock dividend
Western
necessary
authorized the issuance of
and refunding mortgage
Oct. 25,
Norman
&
Siegler Corp., Chicago,
•
Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be
the
$50,000,000.
company plans to sell about
stock.
Underwriter—Bache & Co.,
New York.
25%
a
vote
precise type, amount or date of financing. Stock¬
approved proposals to increase the authorized
common stock to 40,000,000 shares from
10,000,000 shares
reported
on
of
^ Van Norman Co.
•
,
stockholders
bidders:.
&
holders
County Natural Gas Co.
17
plans to sell $18,000,000
to the
and
an
110,000 shares outstanding,
tjrice—$50 per share. Proceeds—To increase capital and
surplus. Underwriters — Bosworth, Sullivan & Co.;
Boettcher
&
Co.; Merrill Lynch, Pierce, Fenner &
Beane; Peters, Writer & Christensen, Inc.
Scott Paper Co.
by competitive bidding. "Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody &
Co.; The First
Boston Corp.; Smith,
Barney & Co.; Harriman Ripley &
■
of
Sept. 20, Thomas B. McCabe, President, announced a
major financing program will probably be undertaken
by next spring. No decision has yet been reached as
determined
Co. Inc.
13
For
year. Pro¬
Underwriter—To b«
program.
(11/29)
Nov. 29.
Co.
reported that
right to subscribe
by competitive bidding.
Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Blyth & Co., Inc.; Union Securities
Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.;
White, Weld & Co. and Shields & Co. (jointly). Bids—
Expected to be received up to 11:30 a.m. (EDT) on
Bros.
reported company proposes issuance and
construction
announced company
was
30,000
Insurance Co. of
was
tional shares of capital stock (par $20) on the
one new share for each four shares held before
Diego Gas & Electric Co.
Probable
$7,500,000 of preferred stock later this
ceeds—For
program and
Underwriter—None.
of
par
United States National Bank of Denver
Oct.
share. Proceeds—To further
for general corporate pur¬
per
issue
new
a
(no
cago, 111.
a
Proceeds—To repay
Underwriters—To be determined
purposes.
Inc.
Feb. 21 it
Sept. 22 received the
Oct. 31 for 52,300
on
stock
common
America, Chicago, III.
offering of from 350,000
share to 400,000 shares is expected, partly for selling
stockholders.
Underwriters—May be R. S. Dickson &
Co., Charlotte, N. C., and A. C. Allyn & Co., Inc., Chi¬
bonds, series F, due Oct. 1, 1985.
bank loans and for new construction.
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder,
Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Con
sale of
Price—$8
United
N. Y.
(par $2) to stockholders
new
Oct. 3 it
before
or
building
Oct. 1 it
reported company plans to issue and sell
later this year $9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction
Underwriter—To be determined by competitive bidding
Electric
on
stock
common
authorized
value), of which
initially issue 10,000 shares bearing a $5
dividend and having h redemption value of $105
per
share. Proceeds—For expansion program.
Underwriter
—Rauscher, Pierce & Co., Inc., Dallas, Tex.
Proceeds—For construc¬
record
Industries, Inc.
stockholders
it is planned to
—
Rye,
11
shares of
of 30-year first mortgage
was
Pennsylvania
of
San
that
Bank,
subscribe
to
l-for-7 basis.
Pennsylvania Electric Co.
.
Oct.
sbare for each seven shares held.
new
stockholders of
27
shares
Underwriter—In August, 1951, William R. Staats & Co.,
Los Angeles, Calif., handled stock financing.
Feb. 15 it
Underwriter—Dillon, Read & Co. Inc., New York.
Texas
Underwriters
National
Rye
Sept.
right
poses.
corporate
one
reported company plans to sell addi¬
of new
which is estimated at about $17,500,000.
was
construction,
company.
The First Boston Corp.,
Blyth & Co., Inc., Wertheim & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
the company plans to issue and sell
publicly $10,000,000
of 20-year convertible sinking fund debentures. Proceeds
working
of
company
tion program.
Riter
announced
resources
Electric Corp..
&
Price—To be determined later.
(joint¬
and
13
the basis of
on
will
able Securities Corp. and Union Securities
Corp.
financial
Lehman Brothers and Lazard Freres &
—
it
tional first mortgage bonds later to finance cost
applied to the New York P. S. Com¬
mission for authority to issue and sell to its common
stockholders 200,000 additional shares of common stock
plans contemplate
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
—For
increase
Rochester Gas
announced
was
March 15
Co., both of New York.
,
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.
Northern
To
—
Underwriters
reported, that the company plans the
issue and sale late, in November of
$1,755,000 equipment
trust certificates. Probable bidders:
Halsey, Stuart & Co.
March 29
Texas Gas Transmission Co..
Corp. of America
Sept. 2 the. directors discussed the advisability of issuing
$100,000,000 of subordinated convertible debentures. Pro¬
-
r
&
Buse
of
has been
Westheimer
326 Walnut
added
&
to
the staff
Company, 322-
Street, members of the
York
and
Cincinnati
Exchanges.
Mr.
Buse
New
was
Stock
previ¬
ously with W. C. Thornburgh Co.
Gordon Hanlon Adds
(Special to The Financial/Chronicle)
BOSTON,
Mass.
—
Robert
P.
Loring has become affiliated with
Gordon B. Hanlon & Co., 10 Post
Office
Boston
Square, members
Stock Exchange.
of
the
44
;
(1792)
J
The Commercial and Financial Chronicle
Investing for Income
I
'
Sales of Mutual Fund Shares in
~]
Mutual Funds
i
through
! National Income Series \
1
"
I
mutual fund, the primary
I
a
J
I
tive of which is to provide
investment in
j
of bonds, preferred and
a
objec-
diversified
an
By ROBERT R. RICH
I
group
|
A Week's Work in
"If the American genius for
relatively high current yield and
j
current
tinuance with regard to the risk
involved. Prospectus and other
I
in
[reasonable expectance of its con- ,
•
information
I
from your investment dealer
be
may
obtained
or:
Research
rates,
The number of shareholder
next
century to producing
amount of
same
goods produced in
Corporation
|
Established 1930
j
was
made
the
I
consumers,
workers
and
Our increased
will
owners,
hours of
be
the
leisure,
living that makes yesterday's luxuries
our
beneficiaries
of
of
This
period
improved standard of
increased income have all been the result of increased
output
per man-hour."
member
in
the
of
PUTNAM
importance to
our
us
individuals when measured within the span
as
personal* life and progress.
own
fited—average
personal
consumption
As
consumers
expenditures
over
—our
FUND
237%
weekly compensation has risen 296%
the last 20 years.
since
owners, we have benefited—corporate profits
"During the 20
oj &o6ton
of
our
national
from
second
the
Total
net
Sept.
30,
of
all
growth, it
to
was growth not beyond
our
the typical
"The comparison of the
national
trends shown in
Established 1925'
iih
mutual fund v
Period
a
Production
1895-1915
142
42
1915-1935
20
1935-1955—
133
28
Investment
192
L.
is
whose
F.
—
$101,185,-
according to
by Rob¬
Executive
Vice-
Cody,
made
This
follows:
as
9.1%
of
assets
the same date
increase of 25%.
on
year ago, an
are
fund
of
14.5%
a
common
preferred
stocks,
bonds, and 7.3%
corporate
Forsyth, Jr. has been added to
4519 Main Avenue.
Co.,
earlier
this
noc'ear
year
and
to
organized
invest in the
related
scientific
fields.
four
the
mutual
United
funds
Funds,
nine
months
were
up
of
comprise
Inc.
group
rose to
of
27,390
in
This
million,
net
$50
assets
million,
up more
topped
compared
while
ago, the fund's assets
year
than $80^2 million.
Fund, the largest
reported
group,
net
$131,315,691, equal to
on
the
410 shares.
sets
to
assets
$9.59
a
outstanding 13,689,-
$100,126,953,
the
2-for-l
and
stock
ad¬
split
effected Aug. 4, 1955, the per share
Massachusetts Investors
Boston, Mass.
Growth Stock Fund
assets
equaled $7.91.
shares
sold
this
to
The 968,148
produced
year
Wlassachusetts Investors Trust
earlier.
$10.51
$37,510,561,
year
or
$69,574,088,
share, against
$8.24 a share, a
a
earlier.
bought
funds
Century Shares Trust
aj)\^
Canada General Fund
(1954)
LIMITED
5f:
United
vide
a
OF
diversified, managed investment
on
participation in Canada's growth.
Send for a free
booklet-prospectus by
mailing this advertisement to
BULLOCK
Continental
Fund
relating to the shares of any of these separate
investment funds
may he obtained from authorized dealers or
VANCE, SANDERS
111
by
the
NF.W
share.
compa¬
cluding U. S. Government securi¬
during..the
totaled
of
the
$277,068,000.
This
and
previous quarter.
nine
chases
total
holdings
with purchases of $431,sales of $312,751,000
compares
697,000
to
quarter
while
portfolio
amounted
first
third
$416,925,000,
months
for
of
For the
1955,
portfolios
pur¬
totaled
$1,265,023,000 and sales $864,818,000.
During the third quarter of 1955
distributions of $10,104,000
made to
were
of securities
owners
of the 144 member companies.
28 closed-end comoanies
a
The
paid out
total of $12,332,000, made up of
$11,327,000
in
dividends,
common
$811,000 in preferred dividends and
$194,000 in interest payments. Dis¬
tributions by the 116 ooen-end
companies totaled $88,772,000.
Of
this amount $59,893,000 was from
dividend income and $28,848,000
from net realized
capital gains.
Cash, U. S. Government securi¬
ties
short-term
and
held by the
taled
$441,283,000
1955,
representing
net
assets.
1955
and
obligations
116 mutual funds to¬
This
Sept.
on
6.1%
June
on
$308,701,000
30,
total
with
of
compares
5%
or
or
5.1%
30,
at
1954 year-end.
TOTAL NET assets, shares out¬
standing, net assets per share, net
income, and realized gains on
sales
of securities of
Company
reached
of
The
Invest¬
America
all
highs during the
according to
Jonathan B. Lovelace, President.
Total net assets at Sept. 30, 1955
were
$69,027,207
or
$9.35
per
share
on
7,383,027 shares com¬
pared with total net assets of $39,~
third
new
quarter,
257,895
$7.63
or
5,142,746 shares
per
share
on
a year ago.
6i
YORK
Broadway
EATON & HOWARD
BALANCED FUND
STOCK FUND
COMPANY
EATON
DEVONSHIRE STREET
-
'
!
I20 South
LaSalle Street
24 Federal Street
5
CHICACO
LOS
210
&
HOWARD
INCORPORATED
BOSTON
ANGELES
BOSTON
ESTABLISHED
'33 Montgomery Street
1924
SAN FRANCISCO
West Seventh Street
Prospectuses from
open-end
Managed bp
&
BOSTON
ONE WALL STREET, NEW YORK 5
Address.
had
of
$18,576,466, equal to
share, against $8,446,575,
a
the
EATON & HOWARD
A prospectus
Established 1894
Name.
a
$5.81
in
BOSTON
the basis of
pos-
■ble
CALVIN
or
continued
effect
Bond Fund
U. S. mutual fund
designed to pro¬
In stocks selected
net
period.
$7.38
a
had
Fund
$27,801,274, equal to $9.70
a
share, against $20,681,065, or
$7.69 a share, in the like 1954
.
<ffJ5e
Is
Science
assets of
net assets
in
nies for investment portfolios (ex¬
ment
United
force on
estimated 296,076
Accumulative Fund had
assets September 30 of
to
ofr
in
quarter to be net buyers of
portfolio
securities.
Securities
the
equal
quarter.
number
275,501
mid-year 1955.
$9,415,189
United
plans
an
$362,552,000.
year
total
with
$14,629,091 for the fund, compared
with 630,797 shares for a total of
a
previous
the
third
A year earlier net as¬
were
accumulation
total
1955
than
more
a
justed
Berkeley Street
30
compared
at
as
by investors
purchase of mutual
the
brings
accumulation
$247,-
and the third quarter's gain
$10xk
with
tJduimi
third
during the quarter
30,. compared with
Sept.
in
that
investing companies
267,519 Sept. 30.
share
dealer.
more
Net assets of the
United Income
from
policy of
Common¬
diversification,
were
•
its
reporting date showed that in the
each
on
with
Bishop,
company
29,871
shares
Mutual
investments
69.1%
President of the Fund, announced.
The Fund is an open-end mutual
investment
the
opened
ended
Sept.
with
compares
The largest total for any interim
The Parker Corporation
300
30,
United Funds:
without
principal-
investment
your
to
than 300 individual securities.
in
Gilbert
the staff of Perry T. Blaine &
available
Sept.
$81,159,132
of
fund
rose
announcement
an
of the
prospectus
Commonwealth
Co.
of
as
of
wealth's portfolio consists of
inable
A
assets
sales
of corporations
of
were
ties)
to
for
$100,078,000"
were
total
cipal industrial holdings are oils,
12.6%; electric utilities, 11.9%; and
shares of Science & Nuclear Fund
that state, Donald F.
Blaine Co.
ASHTABULA, Ohio
Lean INCOME
0f
A
our
Sell in California
The division
redemptions
plans
cash and government bonds. Prin¬
the state of California has author¬
ized
the
sale
and
issuance
of
*
jective
,k
companies.
During this
redemptions of holdings by
investors amounted to $35,434,000.
for the regular
Total
25
ineom^
fund
Jump
52% for Year
broad
Science Fund
51%
(Special to The Financial Chronicle)
I
member
month
that
Population
mutual
of
Co. Assets
Consistent
205%
With Perry
|V
contention
another, quite normal, chapter in
1875-1895
ible
possi
Qf
capital and
the
Sales
against $109,932,000 in the previ¬
ous
quarter;
/
Twenty-Year Growth
GKU w i
long term
substantiate
1955.
tember, according to the Associa¬
tion, were at an all-time high of
$126,970,000 for the 116 open-end
Total
stocks,
pattei-n of progress."
securities
of
f
tends to
the 1935-1955 period was
merely
Investors
P°[lfoVl®
selected
table
to
ended
months
1955.
member
chemicals-drugs, 6.4%.
Incorporated
\
the
history.
manufacturing production and population
30,
three
quarter
Commonwealth's
or average
June
amounted
against $271,976,-
as
Commonwealth
point out that the last
Most facts do not support
quarter
the
fund shares for the month of Sep¬
companies amounted to $8,492,496,000 compared with $8,484,675,000 at the end of the previous
324%.
While the last two decades witnessed
for that of many: similar periods in
'"**
'
-
business
history.
"Many less-informed observers hasten
Street, Bosto*
'
As
have increased
1
''
1935.
for
investment
60,240
up
quarter of
assets
open-end
(mutual fund) shares for
$314,966,000
The number of accounts totaled
on
of
third
000
have benefited
we
the
price
President.
substantial
''
increased
Sales
company
'
2,165,306
ert
this too-commonly-held idea.
■
have
since 1935," he pointed out, "the American
years
20 years was a period of unusual
progress.
*'*'■
have bene¬
economy continued its basic pattern of growth that has been shared-in
and contributed-to by almost
every generation born within the stretch
fVTHAM Fund Dirnusoroas. Im~
50 State
As worker-producers
we
594,000.
recent
stock
common
This represents an
increase of $1,194,902,000 over the
1954
year-end total of $7,297,-
Companies.
included
"These long-term trends," Mr. Smith
said, "have real and signifi¬
cant
U/te Seora*
sharp market break
three months.
ac¬
com¬
to
Investment
decline
as
this
basic part of today's living,
a
144
rise during
ended Sept. 30, ac¬
the National Associa¬
to
levels.
shareholders, Mr. Smith continued, "We,
120 Broadwoy, New York 5, New York
our
its
quarter
cording
a
by Charles F. Smith, President of Finan¬
cial Industrial Fund,
Inc., in the Fund's twentieth annual report.
In his letter to FIF
and
continued
tion
This statement
progress.
of
panies
40-hour week."
i
'
counts
increasing productivity continues at
look forward in the
we can
single seven-hour day the
a
Day
a
j
National Securities &
I
]
j
All-Time High
at
in that month.
|
]■ stocks selected because of their
September
Results significant in view of
J
common
Thursday, October 27, 1955
...
your
Investment Dealer
or
the
above.
o
Number 5476
182
Volume
.
.
Fidelity
All-Time High
At
Fund Shares
As
Being Offered
of Sept.
Public
on
distri¬
current
bution, of
issue.
investment
$202,368,245.
of 41 .3%
stock of In¬
Oct. 27 by an
headed
fund,
made
was
underwriting group
jointly
Kidder,
by
all-time
an
value
asset
net
high
neg
This is
of
increase
an
.
ternational Resources, Inc., a mu¬
tual
the
of
the net asset value
over
$133,752,411
Sept. 30,
on
1954.
The number of shares outstanding
and
the
also
attained
number
shareholders
of
highs
new
as
of the
date.
same
Pea-
Net asset value per share as of
Sept. 30, 1955, was $14.19 com¬
The stock is priced at $5 pared with $14.32 on June 30,
per share.
Now a closed-end in¬ 1955, and $11.11 a year ago.
vestment company, it will become
body & Go. and Hemphill, Noyes
&
CQ'
open-end
an
company
shares
deemable
of
distribution
with
shares
now
The
company
invest
organized to
was
securities
in
TRUST
companies
of
of
or
a
year
deplete the known world reserves
of
low-cost
strategic
raw
ma¬
gain
a
they
being
are
more
rapid pace than
replaced by new
that the fund's
investments generally will be in
is
It
expected
stocks, with special
to companies which
at¬
tention
di¬
rectly or indirectly own substan¬
tial! interests
in
such
natural
resources • as
oil,
natural
gas,
uranium, thorium, coal and hydro¬
electric power, iron ore, timber,
non-ferrous metals, sulphur and
common
potash.
net
company's
amounted to
$5,141,642 as
assets
of Sep.
14, 1955.
The
entered
has
fund
into
Angeles
investment
the latter,
which
under
adviser, will man¬
the investments of the fund.
age
net
a
is
and
share,
equal
value
asset
the
on
trustees
week
of
of
$24.84
date
same
that
said
Sept.
last
Eisenhower's
dent
in
to
Peter Colefax, President
American Potash & Chemical
of
Corp.; Lewis B. Harder, President
of South American Gold & PlatL
and Jonathon B.
Lovelace, President and director
Company;
num
Capital Research and Manage¬
of
ment
Company.
With Harriman
Ripley
30
Street.
Federal
of
shares
-
BOSTON,
is
Timbie
redeemed
Planning
Mass. — Charles E.
with
Investors
Corporation
of
New
England Inc., 68 Devonshire St.
purchase of the Trust's shares by
have
Joins F. S.
exceeded
redemp¬
BOSTON,
Moseley
of
F.
gress
S.
Mass.
—
Frederic
During the three months ended
has
Street, members of the New
York and Boston Stock Exchanges.
that
this
year's income, figured on a basis
comparable with last year, repre¬
sented a gain for the nine months
of 17% over the
The
$4,788,164 for the
The improvement in net invest¬
ment
income, he explained, re¬
flected
primarily the results of
changes in portfolio investment
and higher dividend
in the portfolio.
investment
Net
assets
of
stock
common
issued
exercise of Tri-Continental's
upon
This
about
was
June
the
as
30
the
total
and
compared with $236,164,289 at the
net
at
assets
Sept. 30,
1955,
President, were $47,259,726, equal
to $9.34 a share, compared with
$34,467,561 or $7.97 a share on
Sept. 30, 1954.' In addition to the
gain in asset value per share, a
50-cent capital gain distribution
was
paid in January 1955. Divi¬
first
at
nine
months
share.
a
in
totaled
At
Sept.
Outstanding shares
bonds
ernments
common
cash
U.
stocks
S.
Sept.
on
30
corporate
obliga¬
group
number
of
shares
steel,
Equities
added
the
to
portfolio
Canadian
reported
cash,
bad
$56,202,208
that
bonds
Superior
Gov¬
10.5%.
The
investments in 110
companies, the five largest hold¬
had
Canadian
of
Oil
Ltd.,
California,
O'okiep Copper Company Limited.
There
reductions
were
in
holdings
the
of Distillers Corporation-Seagrams Limited,
British Columbia Power Corporation Lim¬
Interprovincial
ited,
Pipe
Line
Company,
Royalite Oil Company, Limited, 5Vi% Cum.
Convert.
Pfd., and Virginia Orange Free
State Gold Mining Co. Ltd.; while equities
eliminated
28th CONSECUTIVE DIVIDEND
The
Consolidated
Mining and Smelting Company of Canada,
comprised
and Dominion Foundries
Limited
AND YEAR-END CAPITAL
GAIN DISTRIBUTION
and Steel,
Limited.
The Directors of Television-
Schirmer Atherton Adds
Electronics Fund,
declared
(Special to The Financial Chronicle)
BOSTON,
Gould,
have
Jr.
Mass.
and
—
gress
of
tribution ,from
Gage-Wiley Staff
SPRINGFIELD,
Mass.
November
of
third
the
quarter
was
Weiner
has
become
.
'
,
1955
of
to
record
1, 1955,'
Chester D.Tripp
October 20, 1955
With Gibbs & Co.
President
135 S. LaSalle Street,
Chicago 3, Illinois
(Special to The Financial Chronicle)
C.
Graham
is
Mass. — Francis
with Gibbs 8c
now
Co., 507 Main Street.
Joins
Goodbody & Co.
(Special to The Financial Chronicle)
DETROIT,
Capital
November
affiliated
National Bank Building.
stock, Mr. Randolph stated.
York
dis¬
nearly
equal to the total of its outstand¬
ing debentures and preferred
New
a
capital
payable
30,
shareholders
Daniel
—
both
share,
per
(Special to The Financial Chronicle)
WORCESTER,
holding of
and
net
gain of approximately 50<2
compared with $40,-
Tri-Continental's
from net in¬
vestment income
Street.
Joins
of
fixed income securities at the end
approximately
10c per share
with
connected
become
Inc. have
quarterly divi¬
a
of
dend
William J.
J. Nagle
Garrett
Schirmer, Atherton & Co., 50 Con¬
'uo,ii6 on last uec. 31.
Fund
of
Canada, Ltd., net asset value ou
Sept. 30 was $28,572,242, equal to
Gill
has
Mich. —Wilfred G.
affiliated with
become
Build¬
Goodbody & Co., Penobscot
ing.
oil 9.9%,
9.7%,
steel
9.2%, building 6.4%, electrical &
non-ferrous
metal
6.1%.
reference
stock
market
Rubin stated
to
illness
as
President
touching
reaction,
follows:
.
off
Mr.
.
under
contributed
his
leadership have
to the growth
much
'
'
.
i
ELECTRONICS
Fundamental Investors, Inc.
®l
as an
the
strength of his personal character
and
the very material
achieve¬
ments
Have You Considered
"
< , >
,
You
lygj
request
Atlanta
—
a
diversified
group
through
the shares of
FUND, INC.
Manhattan Bond Fund, Inc.
Get the
booklet-prospectus about the
Company from
dealer
!»!
Diversified Growth Stock Fund, Inc.
\vnpjy
or
available on
through
mutual
investment
funds
firms,
or:
HUGH W. LONG AND COMPANY
MANAGEMENT CORP.
3,
New
I
60
i
Jersey
ADDRESS
city.!
Los Angeles
115 Broadway
New York 6, N.Y.
name
incorporated
Elizabeth
investment
TELEVISION SHARES
Chicago 3, III.
Prospectuses
your
mail coupon to
135 S. La Salle St.
local
Lord, Abbett & Co.
Invesfment Medium?
invest in
TELEVISION-ELECTRONICS
objectives of this Fund
long-term
capital
and
incom*
growth for its shareholders.
upon
can
of electronics securities
Diversified Investment Fund, Inc.
these
Broadway, New York 6, N. Y.
ings by industry being
Prospectus
—
65
Royalite Oil Company, Limited,
Westinghouse Company Limited,
Ltd.,
preferred
agfrecaf° ^Ida
an
as
holdings
and
*
Great Plains Development Company of Can¬
ada,
L.
He
Co. Inc.,
&
Manager and Distributor of Chemical Fund, Int.
with Gage-Wiley & Co., Inc., Third
net
request
on
during
Investment
Chicago
Prospectus
F. Eberstadt
quarter were Calgary Power, Ltd., Que¬
Metallurgical Industries Limited, Nesbitfc Labine Uranium Mines Limited;
and
there were increases in Simpsons, Limited,
year.
Fund
—
Diversified Investments in the Chemical Field
Including the New Science, Nuclear Chemistry.
automotive,
1.03%;
moderately from 80.6% at June 30
and 82.8% at the beginning of the
A Common Stock Investment Fund
New York
Objective of this Mutual Fund is possible
LongTerm Growth of Capital and Income through
the
of investment assets, down
78.6%
Affiliated
•re
The
bec
common
of assets, cor¬
0.1%,
and
ago.
year
a
30
and
largest
1.99%;
stock equalled $40.50 per share on
20
Sept. 30 of 5,059,118 compared
with 4,324,935
assets
$36.16 at the first of the year and
reported by Edward P. Rubin,
as
fund's
1.01%.
beginning of 1955 and with $212,on Sept. 30 of last year.
increased
&
Co.
&
finance, 2.72%; building materials,
546,562
the
previously with
Co. and Wulff-
was
Richards
value
asset
dising, 7.99%; utilities, 6.27%; life
insurance, 6.15%; electric and
electronic, 3.29%; pipe lines 3.11%;
and
Sept. 30, including
$1,998,954 of new funds received
in the third quarter for 112,553
SELECTED AMERICAN SHARES
total
net
12
holding of
equities consisted of metals and
mining shares which aggregated
$31.98 at Sept. -30, 1954.
Common stock holdings stood at
totaling $9,556,370,
cluding short-term notes.
Oct.
ernment
totalled
on
Rogers
Hansen
equities, 75.7%; foreign ob¬
ligations, 10.8%; Canadian Gov¬
nine-month period in 1954.
same
ex¬
securities
a
joined the staff
Moseley 8c Co., 50 Con¬
III
stated
outstanding on Sept. 30, Mr. Ran¬
dolph stated, and this compared
with $41.35 at June 30, and with
Eisenhower's
S.
Randolph
Hill
Exchange.
Stock
were:
The
of the Board and President.
Mr.
of the
members
Street,
Francisco
equal to $27.25 a share.
was
•
Mr.
San
markets, where the bulk of
assets is invested, and
on
$4,926,875, or 17.24% of net assets.
$6,143,921
for the first
nine Other major group holdings in¬
months of 1955, it was reported
cluded
oil
and
gas
shares,
or
by Francis F. Randolph, Chair¬ 14.41%; paper, 9.56%; merchan¬
man
Sansome
the fund's
that
tions, 9.9%; and cash and receiv¬
ables, 3.6%.
Tri-Continental Corporation net
income
totalled
Net asset value for the
Sept. 30 the Trust added $12,912,339 to its investment holdings as
compared with sales of portfolio
With
Moseley
wel¬
FRANCISCO, Calif.—
Lloyd E. Rogers has become asso¬
ciated with Davidson 8c Co., 155
reflected in Cana¬
was
investment
every year.
electronics
(Special to The Financial Chronicle)
be
Closed-End News
same
in
should
opportunity."
an
as
warrants.
prices during the
of the Trust's existence,
company
now
decline
or
comed
period of market hesi¬
a
...
tation
represented
market
porate
(Special to The Financial Chronicle)
year
stock
represented 89.4%
With Investors Planning
tivity will be well sustained next
by the Trust. Trustees also stated
that despite wide fluctuations in
cents
—
dian
shares
number
asset
net
impaired health of President
Eisenhower
the
the
Nathaniel L.
Harris, Jr. is connected with Har¬
riman Ripley & Co., Incorporated,
BOSTON, Mass.
advancing substantially this
and we do not believe stock
prices are high in relation to
these earnings or the dividends
which are being paid from them.
Our studies indicate the probabil¬
ity that the level of business ac¬
year
$263,066,013
investors
Earnings
payments in general by companies
dends from investment income
(Special to The Financial Chronicle)
companies.
•
(Special to The Financial Chronicle)
SAN
with
compared
Selected
.
the
illness,
This
are
Presi¬
Among the directors of the com¬
pany are
American
the
number of shares purchased
by
investors
substantially exceeded
years
.
the
during
26
reaction
market
severe
.
Davidson Adds to Staff
,
Sept. 30.
to
as
holdings
The
man
share, accord¬
per common
ing to the fund's quarterly report
for
the
t h r e e^ months
ended
value of $27,794,816, or $27.79, on
management is reas¬ June 30. The report stated that a
the strength under¬
sharp decline in securities mar¬
lying the values represented by kets in the United States on Sept.
stocks
of
efficiently
managed 26 after the announcement of the
sured
to
compares
year.
an
agreement with Capital Research
Company of Los
a
February,
per
share
tions
and Management
as
with
31
The
in
share
per
discoveries.
share on
$31.77 whicn,
special capital
was
distribution of 29 cents per
$32.06
one
more
contribution
$28.57
American's
ago..
The net asset value per
growing industrialization through¬
the worjd will continue to
terials at
compares
in total assets,
28,000,028 shares outstanding and
118,684 shareholders at the same
time
factors
the
three
$695,642,528
Sept. 30, 1955
together with
out
This
shareholders.
with
any
has rIso
confidence
upon
than
two
remem¬
a
$918,604,754,
with 28,913,860
outstanding owned by 129,-
022
of
Sept. 30, 1955 total
new record
high
at
shares
related to any phase
of the exploration, extraction, dis¬
tribution
and processing of the
various types of natural resources.
This investment policy is based
on
the management's belief that
engaged in
assets
the
for
reports
months ended
net
offered.
being
INVESTORS
MASSACHUSETTS
after
shortly
the
re¬
this
based
substantial
30, 1955, the 102nd
that
reached
offering of 1,500,000
shares of the capital
been
past
i't is well to
But
that
ber
the
in
(Confidence
years.
Quarterly Report of Fidelity Fund
showed
Will qpen-end
of
Assets of
Int'l Resources
45
(1793)
The Commercial and Financial Chronicle
.
i
46
The Commercial and Financial Chronicle
(1794)
The
Indications of Current
Business Activity
week
IRON AND
STEEL
Indicated steel operations
and
condensate
(bbls.
97.0
74.5
§2,370,000
*2,386,000
2,341,000
1,776,000
AMERICAN
IRON
(bbls.)
6,713,700
6,690,150
6.684,200
6,195,950
Oct. 14
Oct. 14
117,357,000
7,191,000
7,471,000
6,765,000
25,353,000
25,954,000
23,035,000
25,565,000
Oct. 14
2,059,000
2,066,000
2,097,000
10,897,000
10,468,000
11,503,000
10,163,000
7,342,000
of
152,165,000
AMERICAN
New
150,676,000
Distillate
fuel
Residual
oil
fuel
ASSOCIATION
output
of
(bbls.)
(bbls.)
oil
at
150,480,000
7,712,000
151,006,000
37,228,000
36,355,000
35,726,000
38,796,000
148,847,000
Oct. 14
at
OF AMERICAN
7,6^9,000
145,598,000
141,229,000
133,253,000
47,288,000
Oct. 14
46,700,000
47,021,000
Oct. 15
807,035.
822,214
684,252
691,237
661,927
596,845
ireight
COMMERCE
COKE
ENGINEERING
CONSTRUCTION
ENGINEERING
—
U.
Private
3,480
2,566
$169,000,000
$167,358,000
$149,898,000
$263,000,000
$669,000,000
$333,200,000 i'
*6,183,533
*6.038,615
4 529,800
6,224,326
170,310
*144,918
44,000
»
2,064,918
*2,111,991
2,855,874
-
$564,000
GOVERNORS
$580,000
$803,000
OF
REPORTED
U.
—
Month
—
of
S.
DEPT.
August
OF
coke
OF
(000's
of
Aug.:
tons)
(net
coke
tons)
(net
Oct. 20
$419,915,000
$345,812,000
$432,958,000
$323,236,000
a.—-—Oct. 20
,257,600,000
228,694,000
285,305,000
162,315,000
117,118,000
147,653,000
147,556,000
Oct. 20
106,261,000
84,757,000
127,830,000
95,998,000
ERAL
RESERVE
Oct. 20
56,054,000
32,361,000
19,823,000
51,558,000
As
Sept.
9,760,000
*9,835,000
9,970,000
8,421,000
500,000
537,000
562,000
561,000
128
125
125
119
tons)
:
:
175,680,000
-—Oct. 20
construction
MINES)—Month
Public construction
State and municipal
Federal
'•
Oven
coke
stock at end
COMMERCIAL
of
PAPER
'
4,485,800 >
OUTSTANDING—FED¬
BANK
(000's
30
(net tons)
month
of
-
BY
_
(net
Beehive
construction
S.
OF
__
(BUREAU
Oven
NEWS-RECORD:
Total
3,118
delivered
cars
CORPORATIONS
Production
CIVIL
4,681,242
INSTITUTE—
721,336
of cars)—Oct. 15
(no.
827,245
CAR
September:
omitted)
Revenue freight loaded (number of cars)
Re/enue freight received from connections
6,807,483
6,250,597
—
.
56,184,000
*9,594,545
7,053,615
CASH DIVIDENDS—PUBLICLY
RAILROADS:
Year
•Ago
9,881,000
tons)
THE FEDERAL RESERVE SYSTEM—Month
of September (in thousands)
S.
Month
produced
;
(net
J
DEBITS—BOARD
U.
Previous
6,394,636
Aug
domestic
BANK
castings
Sept.
products
RAILWAY
Month
7,531,000
oil
fuel
of that date:
are as
INSTITUTE:
for
of
steel
of
STEEL
steel
tons)—Month
2,278,000
(bbls.)
—Oct. 14
Residual fuel oil output (bbls.)
Oct. 14
Stocks at refineries, bulk terminals, In transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Oct. 14
Kerosene (bbls.) at
Oct. 14
Distillate
AND
ingots and
(net
of
(bbls.)
of quotations,
cases
Latest
Month
average
in
or,
either for" the
are
Month
*98.9
Oct. 14
Crude runs to stills—daily average
Gasoline output (bbls.)
Kerosene output
that date,
Shipments
output—daily
production and other figures for the
cover
Ago
898.2
Oct. 30
(net tons)
each)
42 gallons
Ago
Oct. 30
(percent of capacity)
Thursday, October 27, 1955
..
Dates shown in first column
1
Year
INSTITUTE:
PETROLEUM
oil
Crude
Month
on
Steel
Equivalent to—
and castings
Bteel ingots
AMERICAN
month available.
or
month ended
Week
Week
INSTITUTE:
or
Previous
Latest
AMERICAN
following statistical tabulations
latest week
.
OF
NEW
YORK—
omitted)
<
"
COAL OUTPUT
Bituminous
(U.
coal
8. BUREAU
OF MINES):
>
CROP
and
Oct. 15
lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT
STORE
SALES
SYSTEM—1947-49
15)
Electric
(in
output
FAILURES
(COMMERCIAL
BRAD STREET,
Oct. .22
kwh.).
000
AND
INDUSTRIAL)
(per
PRICES
Electrolytic
(E.
5.174c.
—Oct. 18
:
t
5.174c
$59.09,
171
4.798c
Flaxseed
$59.09
$44.83
$56.59
Rice
Barley
$44.17
(New
29.700c
43.225c
43.650c
43.425c
;
96.000c
96.125c
96.750c
92.875c
15.500c
15.500c
15.000c
15.000c
Oct. 19
(East St. Louis)
MOODY'S BOND PRICES DAILY AVERAGES:
U. 8. Government Bonds
15.300c
15.300c
14.800c
13.000c
13.000c
13.000c
95.87
94.85
99.30
107.62
107.44
110.88
Sweetpotatoes
111.25
110.70
115.82
Tobacco
Oct. 25
109.60
109.60
109.06
112.37
Oct. 25
107.44
107.44
107.44
110.70
102.80
102.80
102.80
105.00
Broomcorn
oct!
25
106.04
106.04
106.04
109.06
Hops
Oct. 25
107.98
108.16
107.80
111.25
Apples,
Oct. 25
108.88
108.88
108.70
112.19
Peaches
Oct. 25
Average corporate
Aaa
2.81
■
2.81
2.88
.2.55
3.30
Oct. 25
,
•*
3.30
3.31
Apricots
Cranberries
,
3.19
3.19
3.31
3.31
3.13
■
-a
3.22
3.04
Public
Industrials
MOODY'S
NATIONAL
INDEX
PAPERBOARD
Orders received
Production
3.45
3.39
3.39
3.22
3.28
3.27
3.29
3.23
3.23
3.24
3.05
Oct. 25
-1L
(tons)
398.7
403.4
411.6
(5
Oct. 15
Percentage
272,234
Oct. 15
291,411
379,667
289,693
290,350
Oct. 15
102
102
ERNORS
653,346
677,874
635,802
'
2,569-
270
206
1,069
1,112
1,018 1
81,440
90,510 <
OF
THE
FEDERAL
155
,
RESERVE
of
Sept.:
adjusted
141
Index
of
Sept.
429,295
140
124
141
♦139
126
84.5
83.5
82.3
$199,661,000
$167,650,000
$168,048,000
48,500,000
44,147,000
39,247,000
9,062,000
8,659,000
8,648,000
36,983,000
35,454,000
34,907,000
;
INTERSTATE
93
...
.
258
(barrels)
SYSTEM—1947-49=100—Month
252,442
104
Oct. 15
of period
241,538
30,434
•
3,134
89,800
States)
(pounds)
Seasonally
404.1
246,613
61,316
30,510
•
258
Unadjusted
(tons)
109,512
48,773
270
:
-
43,363 *
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ASSOCIATION:
(tons)
of activity
Unfilled orders (tons) at end
States
(3
Pecans
3.10
Oct. 25
COMMODITY
3.58
3.39
Oct. 25
Group
Group
3.58
Oct. 25
1
Group
Utilities
108,201
3,134
3.13
1
3.58
Railroad
107,323
30,363
(tons)
27
'
50,539
States)
14,091 "
43
(bushels)
'
*
7,481
37,946
(tons)
(12
29,880
2,236,408 f
12,219
"*37,108
(bushels)
.
356,031 'c
36,137
2,258,867
7,056
;
.
3,484
342,795
1,023,070 1
392,539
i
.
7,056
12,176
(bushels)
3.12
3.10
35,593
2,308,028
(tons)
2.86
3.10
3.31
—
>-
(tons)
3,052
18,899 •'
387,527
387,334
(bushels)
commercial crop
Cherries
*
Oct. 25
2,833
1,689,325
(bushels)
(pounds)
Grapes
18,922
1,749,325
(pounds)
Pears
49,328 *
27,579
4,755
374,816
Sugarcane for sugar and seed
Sugar beets (tons)
Industrials
51,699
26,731
18,954
^
_______
95.86
MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds
v
52,703
(bushels)
111.25
Group.
Group
10,184
26,731
bags)_—
107.62
Utilities
13,696
2,833
(100-lb.
beans
»
-
104,380
9.939
(bags)
Oct. 25
Group
12,873
108,464
>
,
4,875
Oct. 25
Public
204,087
9.939
(tons)
Oct. 25
Railroad
226,776
r.
U
'
timothy
Aaa
Baa
58,853
(tons)J
Average corporate
A
23,688
41,534
48,745
13,928
(pounds)
Potatoes
370,126 >•
28,448
43,003
..
109,908
'
edible
for
Peanuts
386,551
228,695
,
field
Soybeans
•
I
28.448
(bushels)
(tons)
dry
5,557
173,487
1,439,579
50,233
(ton)
dry
Peas,
14,334
213, C39
1,636,030
386,551
^
bag)
lespedeza
'
14,379
42,985
(tons)
Beans,
11.500c
179,040 •>
1,636,030
i
Hay, clover and
Hay,
14.800c
Oct. 19
at
wild
790,737 "
227,373
211,746
,
.
Hay, /alfalfa
30.800c
Oct. 19
at
Louis)
43.650c
—Oct. 19
at
at
Lead
42.925c
all
Hay,
Oct. 19
York)
Lead (New York)
42.825c
;
(bushels)
(bales)
Hay,
Oct. 19
)
969,781
689,403
226,125
(bushels)
Cotton
QUOTATIONS):
2,964,639 '
916,776
689,403
(bushels)
grain
3,113,467
915,528
___
(bushels)
(100-lb.
f
(in thousands):
(bushels)
Sorghum
$33.00
1
3,117,739
(bushels
spring
(bushels)
Oats
229
copper—
Export
Straits tin
spring
5.174c
1
$59.09
$44.83
Oct. 18
refinery at
refinery at
(St.
203
»
)
'
AGRICULTURE—
(bushels).
Durum
Rye
Domestic
Zinc
9,033,000
OF
of Oct.
as
Other
239'
.
Oct. 18
,
M. J.
10,756,000
•
lb.)
A
All
10,599,000
DEPT.
S.
all| (bushels)
Winter
*
&
Oct. 20
Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL
DUN
INC.—
IRON AGE COMPOSITE PRICES:
Finished steel
—
10,644,000
•'
'
REPORTING
(bushels)
all
Wheat,
>
EDISON ELECTRIC INSTITUTE:
U.
Crop reported
Corn,
Oct.
100
=
CROP
—
■
BOARD
RESERVE
INDEX—FEDERAL
AVERAGE
<
Oct. 15
PRODUCTION
COMMERCE
COMMISSION—
Railway Employment
(1947-49 = 100)
at
middle
of
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
AVERAGE
=
100
Oct. 21
106.82
106.83
106.94
LIFE
106.23
POLICYHOLDERS
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
ODDLOT DEALERS
AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE
sales
by dealers
(customers' purchases)—t
Dollar
Oct
value
I Oct!
Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
Customers'
1,205,959
975,702
942,032
$67,876,525
$53,550,016
$46,602,053
1,673,878
1,083,527
11,216
1,662,662
3,866
4,916
1,079,661
797,559
——Oct
$93,758,556
$57,097,900
$39,503,986
306,870
218,400
307,030
Number of shares—Total sales
,
.
Oct.
Short sales
~~~
sales
Annuity
$45,371,349
385,050
of
OF
LIFE
August:
payments
payments
965,481
Oct.
Round-lot sales by dealers—
INSTITUTE
TO
endowments'
Disability
8,215
Oct
other sales
Dollar value
Other
$136,907,987
Oct
short sales
Customers'
2,480,280
PAYMENTS
benefits
Matured
Number of shares
—
INSURANCE—Month
Death
COMMISSION:
Odd-lot
INSURANCE—BENEFIT
I_Oct
0ct
Round-lot purchases by dealers—
Number of shares
Oct.
3~85~050
802,475 ~
3061870
428,510
1,171,480
2~18~400
391,870
VOTAL ROUND-LOT STOCK SALES ON THE
N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS
Surrender
973,696
values
76,312,000
INSURANCE
OF
307~030
LIFE
(000's
60,271,000
$398,481,000
$380,859,000
$2,362,000
$2,548,000
$2,000,000
PURCHASES—INSTITUTE
INSURANCE—Month
of
Sept.:
omitted):
Ordinary
262,280
69,738,000
76,412,000
_
Total
LIFE
66,158,000
71,605,000
$442,123,000
Policy dividends
•
Industrial
561,000
540,000
525. ODO
823,000
557,000
480,000
$3,746,000
Group
$3,645,000
$3,005,000
(
(SHARES):
Total round-lot sales-
Total
Short sales
Other
Ont
~~
sales
Total sales
0ct,
"I"T
ROUND-LOT
Oct!
700,930
21,984,950
522,700
504,440
12,087,740
8,953,150
9,747,070
22,685,880
12,610,440
9,457,590
10,148,980
TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:
Transactions of specialists in stocks in which
registeredTotal purchases
Short sales
Other
Total sales
on
Jw
the floor—
Short sales
Other sales
1,203,870
Oct
floor—"
0rf.
HZoct
sales
~
Total sales
Oct
IIIIIII
Oct!
Total round-lot transactions for
account of members
Total purchases
Short sales
!
334,600
220,050
179,830
926,270
Other sales
Total sales
ort
0c,f
IlllllllllllllllllllHoSt!
PRICES,
LABOR— (1947-49
NEW
=
SERIES
—
t.
S.
DEPT~
1,282,870
3,615,780
1,502,920
1,176,290
466,580
342,220
247,650
20,800
12,300
Farm
213,630
302,460
585,480
324,010
225,930
552,780
422,060
All
SELECTED
RYS.
107,330
140,230
134,700
1,183,944
680,290
594,527
820,520
729,227
438,480
2,429,960
1,873,580
360,010
1,748,810
1,291,274
5,044,458
64.-3P0.
374,180
492,930
381,080
4,999,604
2,266,370
1,771,437
1,602,910
5,492,534
2,647,450
2,131,447
1,872,510
269,600
foods
I
of Jan. 1,
fNumber
fieure.
1955,
of
as
111.2
87.1
86.7
89.4
91.4
99.8
99.8
101.8
111.4
109.4
79.4
79.4
84.6
reported
since
introduction
3,001,210
51,668
short
tons)
ISSUES
26,490
*25)846
27,066
BANK
£41,756,000
£211,272,000
£43,095,000,
$106,033,549
$101,242,547
$79,059,487
:*.
GREAT BRITAIN-
IN
:>
INCOME
LTD.—Month
ITEMS
Total
of
S.
Sept.---
CLASS
I
Commission )—
Commerce
income
.—
20,135,003
available
after
from
for
fixed
18,991,865
125,643,111
98,051,352
n
3,393.508
121,691,708
94,657,844
91,515,112
fixed
3^51;403
122,792,212
income
89,910,090
3,376,340
charges
charges
deductions
3,411,613
63,027,450.
3,235.402
2,802,194
88,103,499
(way &
■—
,
86,674,628
60,225,256
44,152,033
43,869,887!
34,772,732
1,960,092
3.93
structure & equipment)
44,312,745
45,894,326
25,476,791
Net income
Depreciation
24,400,564
126,168,552
l
income
Income
Other
U.
of June:
Miscellaneous deduction
Income
OF
5,745,022
37,910,184
appropriations:
24,357,389
;
-17,778.098
118.6
118.7
117.9
114.6
On
Ratio
preferred stock
of
income
to
fixed
charges
3.83*
-
1,425,190
2.99
85.0
Oct. 18
727,000 barrels of foreign crude runs.
against Jan. 1, 1954 basis of 124,330,410 tons.
not
163,887
*33,353
103.3
^Includes
orders
*130,665
*2,416,346
66,653
tons)
Net railway operating
Other income
ZINC
of
'Revised
as
-
156,754
2,708,778
On common stock
Oct. 18
and
short
Federal income taxes
111.2
Oct. 18
other than farm
»
*
ounces)—
(Interstate
Month
Oct. 18
commodities
(in
(in
Dividend
foods.
the
ounces)
fine
MIDLAND
347,880
Oct. 18
products
Processed
Lead
327,930
974,578
100):
Meats
of recoverable metals in
fine
25,470
303,210
OF
commodities
MINES)—
States:,
(in
Copper
291,66C
51,000
Commodity Group—
All
OF
1,106,100
3,281,180
213,010
963,280
•
rw
IIIIII
(BUREAU
August:
(In
Silver
1,109,270
534,480
IIIIIII
initiated off the
Short sales
WHOLESALE
1,534,960
rw
transactions
Total purchases
of
NEW CAPITAL
—II—~Oct.
Other
Other
3,603,300
I
Total sales
Month
United
Oct
™
Other transactions initiated
Total purchases
OUTPUT
Gold
Oct
sales
METAL
Mine production
rvt
II
l
of
.
401,910
§Based
on
Monthly Investment Plan.
apacity of
125,828,310 tons
(BUREAU
OXIDE
OF
MINES)—Month
August:
Production
(short tons)
Shipments
(short
-
tons)
Stocks at end of month
—
(short tons)
13,073
12,873
12,600
13,736
11,838
11,373
12,200
12,863
14,863
Volume
Number 5476
182
The Commercial and Financial Chronicle
Ashton Adds to Staff p--v(Special to The Financial Chronicle)
Campeau
DETROIT,
has
R.
F.
scot
R.
affiliated with
Campeau Company, Penob¬
Building.
R. J. Steichen Adds
J.
ence
Minn.
Mikkelson
with
associated
has
become
J." Steichen
R.
&
of
565
Shearson, Hammill Adds
by Glore, Forgan & Co.
Halsey, Stuart & Co. Inc. The
offering is the largest issue of
(Special to The Financial Chronicle)
.
Bretting has become connected
with
Shearson,
Grand
520
viously
Hammill
Avenue.
with
;
Daniel
&
Co.,
was
He
pre¬
toll
bonds
road
are
interest.
lowed
the
D.
Weston
record.
on
Co.
,
.
Joins du Pont Staff
offering fol¬
on
Oct. 25 of
acceptance
the
■
SAN
DIEGO, Calif.
be'
applied
the
to
Gilpin has become associated with
Francis
I.
du
Pont
&
Co.,
San
Diego Trust & Savings Building.
Mr. Gilpin was formerly with E.
S. Hope & Co. and Dempsey-Tegeler &
Co.
of the first stage—193.3
miles
of
—
Northern Illinois
the
Toll
com¬
long.
of»construction
Highway which when
pleted will be 321.4 miles
first
80.2
stage
two
miles
Tri-State
Joins Hannaford Talbot
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—
Dudley Blanchard is with Hanna¬
Talbot, 519 California St.
from
Route
its
Tri-State to
with
U.
S.
a
from
have
Strauss
staff of H.
Russ
been
L.
and
30
few
a
to
collect
U.
S.
Island.
Jamieson
create
to
tolls
is
sufficient
point ;;near
to
Practically
all
the
of
invest¬
ment underwriters in the country
in
are
the
syndicate making the
offering.
Northwest
to
of
Keyston &
%
DIVIDEND
record at the
with
line.
to
dividend
J. EGER, Secretary
30,1955.
Hopkins, Treasurer
Union Carbide
IOWA SOUTHERN
UTILITIES COMPANY
AND
GH3
New York, October 24, 1955—the
Board of Directors of Union Carbide
and
The
the
Carbon
Corporation has today
quarterly dividend of 75£
and a SPECIAL DIVI¬
DEND of 50(4 per share, total $1.25
per share, on the outstanding capital
stock of the Corporation, payable
December 1, 1955 to stockholders of
record November 4^ )955. The last
dividend was 75tf per share paid
September 1, 1955.
Payment of this dividend on
per
DIVIDEND NOTICE
The Board of Directors has declared the
following regular quarterly dividends:
DREWSYS
the
of
CANS ON CORPORATION
declared
35% cents per share on its
4%% Preferred Stock ($30 par)
'
44
cents
share
per
dividend of forty (40)
share for the fourth quarter
quarterly
cents per
the
on
30
to
of business
on
cents
share
per
Common
com¬
stock, payable December 10,1955
stockholders of record at the close
mon
Stock
its
on
$1.76 Conv. Preferred Stock
A
($30 par)
$3.00
1955.
EDWARD L.
October 19, 1955
make
a
total of
per
compares
SHUTTS,
*
1st will
share paid in 1955. This
a total of $2.50 per
share paid in 1954.
par)
payable December 1, 1955,
stockholders of record November 15,
to
a
share
December
its
on
($15
all dividends
November 25, 1955.
with
KENNETH H. HANNAN
President.
Vice-President '
T. E.
JEANNERET,
Secretary and Treasurer
O'okiep Copper Company
Limited
,
(850)
per
St<3Clr~of
the
NOTICE
Company,
1,
payable
The Directors authorized the distribution
American-
of the dhid dividend
in casli
to
The
cn
195Srttr stockholders of rec¬
ord at the close of business November
1955.
Board of Directors today declared a
of twenty shillings per share on
Ordinary Shares of the Company pay¬
able November 29, 1955.
dividend
share JiasJ^een declared upan
Common
December
The
DIVIDEND
of Eighty-five Cents
Harry L. IIilyard,
On October 19th,
dividend of
10,
1955
Treasurer
no
par
a
Fifty-five Cents
in U.S. currency was
Checks will be mailed.
quarterly
per
declared
share
on
the
value shares of this Company,
payable
5th#
December
1955
to
shareholders of record at the close of
28th, 1955.
FRANCISCO, Calif.—
Montreal
George C. Montgomery has been
of
of record November
Johns
October 26, 1955.
business October
staff
January 3, 1956 to stockholders
10, 1955.
(Special to The Financial Chronicle)
the
A quarterly dividend of $1.06K
Ser share on thedeclared payable
4M % Preferred
tock has been
holders of record at the
201st Common Dividend
regular
October 25, 1955
to
record
Philadelphia, October 25, 1955
New York 3, N. Y.
With Protected Inv.
added
on
of
Dividend No. 36
ciates, 506 Montgomery Street.
SAN
of business
December 15, 1955.
ALUMINIUM LIMITED
Tobacco
with Mutual Fund Asso¬
close
of
W. J. ROSE, Secretary
NOTICES
(Special to The Financial Chronicle)
now
stockholders
to
NOTICE
1955 to stockholders
November 30, 1955.
South Bend, Indiana
111 Fifth Avenue
the
are
Company have declared quarterly
fifty cents (50ff)
per share on the common stock payable
cents ($.50) per share cn the Com¬
capital stock of the Company issued
1955, to the
Indiana
extends
DIVIDEND
quarterly dividend of 50c per
share on the Common Stock,
par
value $13.50 per share, has been
declared payable December 22,
dividend No. 163 of
\
!
A
FRANCISCO, Calif.—
Roxie Hagopian and John V. Laird
The Directors of International Harvest¬
er
Drewryt Limited U. S. A., Inc.
Co., 155 San-
SAN
COMPANY
and outstanding in the hands of the public
has been declared payable December 10,
67
S. Route 51
state
Route
Company
A
Wisconsin
Beloit, just south
Wisconsin
East-West
Co., Inc.,
Two With Mutual Fund
HARVESTER
A regular quarterly dividend of .fifty
/
mon
of 1955 has been declared
South
Street.
some
INTERNATIONAL
•//-
a
Expressway planned for
Cook County' and
connects With U.
also
Improvement
Common Slock Dividend
stage
and
the
FRANCISCO, Calif.—
H. Keyston has joined the
M
AND ELECTRIC COMPANY
close of business November
connects
Foundry Company
and
November 4,1955.
on
AMERICAN OAS
the 'fnajor portion of
the route is a beltway around the
Chicago metropolitan area, con¬
necting with the Cook County
The -North
Expressway System.
Route
United States Pipe
I JOHN W. BRENNAN, Secretary & Treasurer
The United Gas
boundary;
Illinois
■
Protected
JAMES A. DULLEA
October 19th, 1955
December 9, 1955
on
Southern
the holders of record at the close of busi¬
December
on
ness
shares
2,
1955
issued under the
of
California
American
of the
terms
Edison
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 ex¬
change for South Africa funds prior to
Company
DIVIDENDS
November 29, 1955, Union of South Africa
non-resident shareholders tax at the rate of
The Board of Directors has
7.05% will be deducted.
By Order of the Board of Directors,
F. A. SCHECK, Secretary..
New York, N. Y., October 26, 1955.
•
i
authorized the payment
of the
following quarterly dividends:
Secretary
CUMULATIVE PREFERRED STOCK,
Investors of America, Russ Bldg.
4.08% SERIES
Dividend No. 23
Two With Calif. Inv.
25 Vi cents per share.
(Special to The Financial Chronicle)
LOS
ANGELES,
Calif.—Hal L.
The
Feldman and Ray H. Mathis have
been
become connected with California
mon
3924
Investors,
Wilshire
Boule¬
vard.
&
following dividends have
declared
on
the
Dye Corporation:
I
60
am
years
and
perience
security
lent
of
many
age,
friends
ex¬
in
all
ENCAUSTIC
markets. Can give excel¬
service
to
an
out
of
town
rate
of
one
share of
or
ployed
ence.
unlisted house.
payable
em¬
mon
De¬
15, 1955, to com¬
stockholders of record
the
close
of
at
H
November 10, 1955.
1013,
Commercial
&
Chronicle, 25 Park Place,
York
7,
N. Y.
R. F.
HANSEN, Secretary
of
1
V*% (62V2 <)
»s
value
of
$50.
share
per
of
today
has
the
par
been
Declared October
20, 1955
declared, payable December 15, 1955, to
ww
stockholders of record at the close of busi¬
oust
ww
t&sss
WW
«88t
Quarterly—15<
asm
Extra—10< per share
per
share
«sss
8888
MM
Viai
Payable November 29,1955
Record Date November 15,1955
ness
A
ww
ww
ww
ww
ww
WW
WW
WW
per
mon
November 15,
dividend
share
on
Stock
of
cember 31,
KISS
asm
asm
88888
WW
»«a
1955,
to
of
surplus
for
from the Company's office in
Los
Angeles, November 30.
1955.
seventy-five cents (75<)
2,596,400 shares of Com¬
without par value of
the
Company
ber 5. Checks will be mailed
si'
of
the
fiscal
net
profits
year
of the
ended
De¬
1954, payable December 15,
stockholders
of
record
ot
the
close of business November 15, 1955.
J.
J.
MAHER,
P. c.
Southern
Railway Company has today been declared
out
pay¬
stockholders of record Novem¬
ihare
per
Company
Railway
are
able November 30, 1955, to
1,200,000 shares of Preferred Stdck of
WW
8889
October 25,1955.
dividend
Southern
ik 88
New
A
on
mm
ww
business
O. T. C. Trader. Refer¬
as
Box
Financial
Now
COMMON STOCK DIVIDENDS
com¬
stock for each twenty
shares
of common
stock
outstanding,
MM
w«
mon
cember
listed
COMPANY, INC.
share.
The above dividends
NOTICE
New York, October 25, 1955.
ss
8K88
per
Company
Tile
DIVIDEND
the doss of business No¬
the
STOCK,
Dividend No. 32
30'/j cents
Floor
TILING
Special stock dividend at
wide
Railway
Wall &
AMERICAN
December 9, 1955, to com¬
stockholders of record
vember 10, 1955.
CUMULATIVE PREFERRED
4.88% SERIES
mon
Trader Available
Southern
Manufacturers of
Com¬
Stock of Allied Chemical
Quarterly dividend No. 139
of $.75 per~Share, payable
at
record
remain open.
GERARD J. EGER, Secretary
'
GERARD
extends
the
close of business
January 16, 1956,
DIVIDEND NOTICES
-
the
near
one
per share on
preferred stock payable December
with
Joins Keyston Staff
staff
on
this
miles
(Special to The Financial Chronicle)
David
of
authorized
for such purposes.
reserves
Building.
SAN
the outstanding
Company, payable
share
per
Stock
The transfer books will
1,1955, to stockholders of record at the
revenues to pay the cost of
maintaining
and
operating
the
highways; the principal of and
interest
on
the
bonds; and to
en¬
Route
Route
the
other
Ralph V.
added
Commission
The
128.1 miles, of the
with
and
dollar
one
the bonds is exempt
with
The second
Tri-State
a
line
the
FRANCISCO, Calif.—
on
of
149
present Federal income
Route
intersection
Route
Rock
of
The
near
(Special to The Financial Chronicle)
all
No.
taxes.
point of connection
west of Aurora.
Chicago
Two With H. L. Jamieson
Interest
from
tion, 24.7 miles, of the East-West
south
FRANCISCO, Calif.—
George. H. Radcliffe is now con¬
nected with Conrad, Bruce & Co.,
235 Montgomery Street.
Walter H. Atkinson
(30<)
Common
December 12, 1955, to stockholders of
'on November 21, 1955.
seventy-five cents ($1.75)
it
of
the North Illinois
and
connection
(Special to The Financial Chronicle)
Jan.
by
bonds,
Route of 88.4 miles—and that por¬
SAN
SAN
their
in
routes
the
—
East-West Route will extend
With Conrad, Bruce
&
:
Company have declared quarterly
is
estimated,
could be retired by Jan. 1, 1977.
con¬
struction
cf construction,
ford
The Directors of Int ernational Harvest¬
er
dividend
highway is expected to be
The
offering will
of
at
1, 1959, with
individual routes opening to traf¬
fic beginning Nov. 15, 1957.
purchase
cost
Expressway
'
tirety
Glen E.
—
The Board of Directors this day declared *
I quarterly dividend of thirty cents
(30f) per
; share and a year-end extra dividend of thirty
COMPANY
Tri-State Route.
The
bonds.
Proceeds from the
Street
completed
ac¬
The
group's proposal to
includes
(Special to The Financial Chronicle)
the
The
priced at 100% and
The
&
Congress
and
LOS ANGELES, Calif.—Donald
R.
headed
members
crued
„
Foundry Company
Birmingham, Ala., October 20,1951
j
HARVESTER
Quad-Cities from the terminus of
Toll
Highway
Commission, Northern Illinois
Toll
Highway, v33/4%
revenue
bonds, series of 1955, dated Oct.
1, 1955 and due Jan. 1, 1995, is
being
made
by
a
nationwide
bonds
Co., Roanoke Building.
.
$415,000,000
of
State
jointly
Clar¬
—
offering
Illinois
group
(Special to The Financial Chronicle)
MINNEAPOLIS,
United States Pipe and
1
The
Mich. —Francis
become
I
j
cents
Public
(Special to The Financial Chronicle)
47
DIVIDEND NOTICES
INTERNATIONAL
Glore, Forgan & Co. and Halsey, Stuart & Co. Inc.
Head Underwriting Group
McNichols Road.
Stack
On Record, Offered by Nationwide Group
i
Co., 15315 West
With R. F.
DIVIDEND NOTICES
$415,000,000 Illinois Toll Road Bonds, Largest
DETROIT, Mich. — Raymond F.
Westphall has been added to the
staff of Ashton &
<1705)
Secretary
October 21,1955
hale,
Treasurer
48
The Commercial and Financial Chronicle
(1796)
...
Thursday, October 27,1
BUSINESS BUZZ
Business
on..
A
Behind-the-Scem Interpretations
services,
C. —One
warming in the
WASHINGTON, D.
things
v
of
welfare incubator in
-
the
keeping
and which rates
tive
Translated
lay English, this means that the
let
billions
for
of
getting
them
to agree
thereto, would kick in the loans
it might
outlet for
cratically-ascertained correct
dollars
of
expenses,
or
become
to start them out on the bureau-
simply the
politically-appealing conversa¬
tion costing a trifling, two or
Right
road.
listed
of
course
one
when
in
Eisenhower,
the
for
done
the
make
and
come
Wheels
part-time
galvanized
Committees
w
e
r
action.
formed.
e
mobilized to translate the
In
due
It
THE
course
be expanded in areas
program
If
Eisenhower
•
Farmers."
Low-Income
lems of
ophy
<
one
to writing "ringing phrases" as is pos¬
sible
in
the
typical reverse
English of that priesthood, a
copy of same may be obtained
can come as near
\
.
the
$1,000
as
would
to
the
.
In fact
briefly, THE program
special extension
work,
agricultural
extension
work, that is, for low-income
and part-time farmers. "During
1955
experimental
programs
should be launched in
nation's
well
as
a
as
i.;
to
worthy borrowers who are
developing their farms," and—
Farmers
ministration
Home
funds
should
supplement private
and cooperative sources.
These
ment
supported by
guidance and
"We
doors
must
of
which
wider
open
opportunity
million and
with
be
to
reaction
to
the
our
'
Ad¬
made available for intermediate
chain
unjustified disnarity in
Participation
community, reli¬
gious and civic affairs/ Enter¬
prise and hope give way to
inertia
and
apathy.
Through
this process all of us suffer.
The problem calls for under¬
standing and for action,
adopt lending
would extend
credit
human
diminishes in
coopera¬
intermediate-term
for
„
a
half farm families
extremely
their
own
for the good of
all
low incomes—
well
being
and
country and
people,"
President
our
our
Eisenhower asserted.
manage¬
technical
Ask Little
Implicit in the Benson "Rural
Development Program" and the
Ettablised
President's endorsement thereof
in its entirety, was the idea that
1856
H. Hentz & Co.
Membert
.
York
Hew
Stock
American
Stock
Hew
Cotton
York
Commodity
Chicago
Exchange
Exchange
Exchange,
Board
Inc.
Trade
of
Hew Orleans Cotton
all
the
Exchange
problems
the
H. V. Cotton
Exchange Bldg.
NEW YORK 4, N.
Miami
Bollywood,
•
Detroit
Beach
Pla.
Geneva,
•
•
•
Y.
Pittsburgh
Coral
Beverly
Gables
Hills, Hal.
Switzerland
Amesterdam, Holland
University of Michigan
Arbor, Mich, (cloth) $2.50
Resources
were in the
the Eisen¬
toward wel¬
proposals
typical
manner
hower
approach
try
of
least
at
first.
All
that
extension
and
the
thaCt
and
set
up
"councils"
state
rural
of
new
welfarism.
to
they mean
go
to
Con¬
and put in their best sales
argument for more money.
soil
With
a new
welfare program,
token
a
initial, "foot in the
appropriation is usually
door"
sufficient to launch the Federal
of.
Government
into
need
and
States:
of
1955—U. S. Departmen
Commerce
Superintenden
Documents, U. S. Govern
ment
Printing Office, Wash
ington 25, D. C. (cloth), $3.50
be. to
buy
equipment.
Greater
long-range
Stock
Exchange
Official
Yea
Book, Vol. 2—Thomas Skinne
&
Co., Ltd., Ill Broadway, Ne~
4, N. Y. (cloth) $33. (tw
complete).
York
volumes
magnitude. Even if thei Eisen¬
Report (Year 1954)—New Yor
Administration
hower
the amount
about
of
is
coy
it
first, it does not take
long for statewide "councils"
and Committees to get to work
money
wants at
Congress
appropriated
no
more money for soil conserva¬
tion or agricultural extension, to
be tagged specifically for tutor¬
ing the low income farmer. It
would
not
go
for a general
grant of authority to Farmers
Home to make loans to parttime farmers, for the fear that
city mechanics would be set up
in business producing more sur¬
plus eggs,- butter, and other
commodities. All that Congress
approved was $15 million more
on
dig
Representative: The Gold Field
American
Development
Co
Ltd., 70 Pine Street, New Yor"
5, N. Y. (cloth).
the MC's from back home to
up some
With Bache & Co.
real dough.
(Special to Tax Financial Chronicle)
.Farmers Home Duplicates
Already Farmers Home is in
existence
specifically
to
uplift
the economic status of the poor¬
est
economic
risk
among
farmers, even though it hasn't
specific authority to lend to
part-time farmers. This agency
disbursed
Home
'
or
stimulated
disburse- under-
to
CHARLOTTE, N. C.—Jack Bur
ris,
Jr.
staff
has
of
"insured"
loans,
year,
some
$293
million
last
the highest in the agency's
history.
Farmers
paltry $863
Home
the
areas
facilities
location of
of subnormal
income, and employment serv¬
to find jobs for those not
otherwise taken
care
of, would
added
Co.,
to
Joins Lloyd
Canady
(Special to The Financial Chronicle)
has
has
become
connecte
with Lloyd E. Canady & Co., Com
mercial
Building.
a
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
own
views.}
New Views
on
RIVERSIDE CEMENT CO.
CALIFORNIA
fur
CLASS
B
(Common) STOCK
Copies
on
request
LERNER & CO.
Investment
10
Carl Marks
&
Co. Inc.
Securities
Post Office Square
Boston, Mass.
Phone HUbbard 2-1990
FOREIGN SECURITIES SPECIALISTS
'50
BROAD STREET
TELt HANOVER 2*0050
\
•
'
RALEIGH, N. C.—Roy L. Wil
million of loans out¬
the "Chronicle's"
th
Johnsto
standing.
ices
complete the trick.
&
Building.
liamson
'
At this point it all looks like
simple selling conversation.
What gives relevancy to watch¬
ing this thing, however, is that
Secretary Benson is showing
signs of dedication to the cause.
Under Secretary True D. Morse
is "coordinating" state and Fed¬
eral activities for the uplifting
of the under-privileged farmer.
In
this
case
"coordinating"
means promoting.
been
Bache
banks
additional
health
education,
factories in
—
of
Those who had farm¬
ing possibilities would be taught
a trade
or other "city occupa¬
tion."
Statistical Abstract of the Unite
Transvaal and Orange Free Stat
Chamber of Mines—64th Annu
a
government how to farm, and
would get the Federal money
if
kiyou County, City Hall, Yreka
Calif, (paper).
commitment of eventually great
unspecified.
Farmers
Opportunities
Council of th
Chambers of Commerce of Sis
gress
services, $30 mil¬
lion additional
for loans to be
to
De¬
And officials have made it clear
conservation
for
loans
clients.
to
extension
Administration proposed was a
little more money for the agri¬
cultural
the
money,
and Committees to sell this
farism, modest in the extreme—
at
promotion
partment of Agriculture is send¬
ing its personnel about the coun¬
to be handled, the
low-
Those who did not have farm¬
Chicago
concrete
was
of
ing possibilities would be told
all they needed to know by
land and
and other exchange$
of
Pilcher
Research
Siskiyou County, Calif.: Economi
vacation I"
on
income farmers would be taken
care
Exchange
long time to get
a
into
ran
In spite of not getting a dime
the
Congress Balks
individual reward.
number
agencies; should be
encouraged
to
policies which
loans;
of
creates
gain experience in
approaches."
credit
production
dent noted.
social
of counties to
"More
problem
how
of
time farmers, with terms to he
can
problem is in¬
adequately pictured by charts
and figures.
Curtailed oppor¬
tunity begets an economic and
recommended
more
discussion
contribute
and
like
some
progress nor
much
as
they
social
and
"This
"Private
that rattlesnake she
goods and services," the Presi-
Recommended Steps
tive lending
"Certainly is taking Miss'Poodle
doled out by the Farmers Home
Administration,
and
specific
authority for the Farmers Home
to make loans explicitly to part-
fully
nomic
contribute
briefly.
new
still
farms
They neither
in
our
eco¬
year.
a
share
expressed
points were not
American
on
have cash incomes of less than
number of points for any
very
the families who
one-fourth of
welfare program, although
new
tion,
Actually in spite of this ful¬
last
Eisenhower
"In this wealthiest of nations
i live
Briefly, THE program had 16
points, at least a suitable minimum
James
Business
of
School of Business Administra
Ann
over
where per capita income is the
highest in the world, more than
sending 25 cents to the
Superintendent of Documents,
Government
Printing
Office,
Washington 25, D. C.
"
Bureau
Endorses
President
y
upon
.
Securities—C.
of low in¬
Spring proposed the enactment
of the program in its entirety
"by reference," as the lawyers
would say, to -the report of
Agriculture Secretary Benson.
is interested to as¬
certain how doctors of philos¬
any
$1.35.
Coordinating
of
ment
.
Raising Capital with Convertibl
farming.
come
was
Associatio
Bankers
Women, 1634 I Street
W., Washington 6, D. C.
N.
farmers, and state and
Federal health services should
entitled, "Develop¬
Agriculture's Human
Resources, a Report on Prob¬
came.
Institut
versity
the
poor
program.
from
Insurance, Associatio
Exchange Firms an
—American Association of Uni
would
President's vague idea into THE
Stock
American
to
farming, some¬
of
Life
of
government,
state
or
local,
provide better vocational
education for the children of
government econ¬
omists, and scores of do-gooders
Sociologists,
were
go
other
or
pamphlets
of
government
would seek to promote setting
up
factories in areas where
there were low-income 'farmers;
farmer.
into
a
how
low-in¬
poor
credit
subsidized
Portfolio
Management
study program with informa
tion
of
with
ities
of his messages to
Congress, said something should
he
A
the
gram,
1954
in
started
all
It
Money
of things
imposing
points to the pro¬
government would
encourage
non-farm
employ¬
ment for those without possibil¬
moment all conversation.
President
to
number
the thing is at the
now
♦
a number
make
an
Forgetting
1
three tens of millions.
:
farmers
profitably and
farm
to
after
might some day become the out¬
Federal
Indians; Economic Devel
of Nigeria; Productiv
Capacity of Rural and Urba
Labor; Static Theory of Auto
ma tic Fiscal Stabilization; Man
power Allocation
and Pricin
Process; Extern Economies, In
vestment, and Foresight — Uni
versity of Chicago Press, Chi
cago, 111. (paper) $1.50.
opment
academic to
from
1955^-containing^ article
ot 'New
Food Economy
land
government would tell
how
welfare projects which
new
tober,
farming," the report recom¬
mended.
of those imagina¬
one
Journal of Political Economy, Oc
successful sys¬
a
on
tem
an eye
is the
Department of
Agriculture's so-called "Rural
Development Program."
This is
low-in¬
assist
would
established in
upon,
t
JL \J It
farmers to become soundly
come
this town,
Man's
^
JCjL I lit
(rem the Nation's Capital,
-
-V-
NEW YORK 4, N. Y.
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