Full text of Commercial and Financial Chronicle : October 3, 1957, Vol. 186, No. 5678

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' v C-

?F MICHIGAN

CONVENTION ISSUE

AMERICAN BANKERS ASSOCIATION

OCT

71357

sSmm

Reg. IT. S, Pat. Office

New York

Number 5678

Volume 186

Price 40

7, N. Y., Thursday, October 3, 1957

Cents a Copy

•u.

DITORIAL

Politics
United

I These

are

not happy days for the

"to

places bankers

or a

severe

India

mittee

unless

which

be facing

money

laid

been

therefore,

and,

chartered

1791

our

bankers

has

bit

neither

time

Koucrston

control

and

criticism

DEALERS

has

partisan politics.

and

banks

towards

that
remember
down to the present

been

banking
been

friendly

nor

free

"currency

from

♦An

the

tion,

page

by Senator Robertson before the State Bank Division
Annual Convention of the American Bankers Associa¬

address

83rd

Atlantic

afforded

City, N. J., Sept. 23,

(

Continued

Registration"

corporate

with the SEC and poten¬

complete picture of issues now registered

State, Municipal

Section, starting on page 54.

and

aife

U. S. Government,
State and

STATE

Municipal

and

MUNICIPAL

V,(r

■

Public Housing

•.»

"MARKET REVIEW-

HAnover 2-3700
UNDERWRITERS

CHEMICAL
RS

•

ABE

DEALERS

NOW

AVAILABLE

<*'

OF NEW YORK

MEMBERS NEW

15 BROAD
CABLE:

YORK A NO AMERICAN

Hembers

<20

STOCK CXCMANQE9

•
Dl 4-1400
TELCTYRE NV ,-MM

STREET, NEW YORK 5, N.Y.

COBUItNHAM

Harris, Upham & c2
•

Bond Dept.

Teletypes NY 1-708

New

York

Stock

from

coast to

$175,000
Net

To
"

State,'..Municipal,

t* lb Watson &Co.

*'■

$■

1832

ESTABLISHED

Members

County and

Active

Dealers,

Markets

New York Stock

Exchange

Stock

Exchange

American

CANADIAN
SECURITIES

PROVINCE OF

25 BROAD
.

STREET

NEW YORK 4, N.

DIRECT WIRES TO

COMPANY

DEPARTMENT

MONTREAL AND TORONTO

GOODBODY & CO.

0AIUS

perth amboy

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

bridgeport

•

Chase Manhattan
BANK

QUEBEC

Commission
4

Due

V4 %

Debentures

December

1981

Payable in United States Dollars
Price 96.25 to yield 4.55%

CHICAGO

,For California
Municipals
MUNICIPAL

DoMcnox Securities
©RPORATIOTi
40

New fork 5, N. T
NY 1-702-3
WHitehall 4-8161

BOND

DEPARTMENT

of America
NATIONAL

.VIEM8ERS NEW YORK STOCK EXCHANGE

FIRST

coast

Teletype NY 1-2270

District Bonds

Guaranteeing Quebec Hydro-Electric

Executed On AH

Canadian ..Exchanges

CANADIAN

•

Maintained

Banks and Brokers

Commission Orders

Exchang*

BROADWAY, NEW YORK 5
offices

■

THE

CORN EXCHANGE

Burnham and Company

DEPARTMENT

BOND

ON REQUEST

THE FIRST NATIONAL CITY BANK

Agency

Bonds and Notes

COPIES OF OUR

Securities
telephone:

on page

1957.

REGISTRATION—Underwriters, dealers and investors in

tial undertakings in our "Securities in

Kirkman

President of Citizens Fidel¬
ity Bank and Trust Company, Louisville, Ky., as
Vice-President, and ElwoodF. Kirkman, President
of the Boardwalk National Bank of Atlantic City,
N. J., as Treasurer., Problems facing the nation's
*Y ,r "*
'
f
dency; Lee P. Miller,

"Politics Versus
Sound Money" is to put all bankers on notice that should
our country be so unfortunate as to experience another
Continued

Lee P. Miller - ?■*> *_<Wood F.

Joseph C. Vveunau

The primary purpose,

therefore, of choosing as my subject

SECURITIES NOW IN
are

difficult

1791

that from
Sen.

securities

public

general

page

1934, when bank deposits
insured, the attitude of the

were

economic

number of

had gone from three to

700.

Since

with ardor, is likewise in trouble despite
Continued

Revolu¬

the

period,

that

banks

about

very

economy

in Atlantic City, Joseph C. Welman, President of
Bank of Kennett, Mo., was elected to the Presi-

1836, there was only one
Federal
charter, * but

during

prove

which

;

Association, held Sept. 22-25,

under

bank

state

Annual Convention of

At the conclusion of 83rd

From the commence¬
Federal Government

War.

ment

during

M. Gidney and Erie Cocke.

Malcolm Bryan, Ray

American Bankers

Jr., Benjamin Strong,

Roger M. Blough, Frank Pace,

son,

no need for banks.
In fact,
the first bank in the new nation was

tionary

respectively. Speakers include Right
Thorneycroft, Senator A. Willis Robert¬

dent and Treasurer,

Honorable Peter

they had

ica

that when it is gone the situation will
much better than it is today. Britain,
has espoused the notion of a managed

Ky., and Elwood F. Kirkman, President of Boardwalk
National Bank of Atlantic City, N. J., elected Vice-Presi- -

Robert Morris' Bank of North Amer¬

^planners of that distressed land with relatively
little to show for them. Without further liberal
amounts of aid, the future is said to look dark;
with such additional help there is little or nothing
be

President of Bank of Kennett,

early Colonists, especially in the Commonwealths
Virginia and Massachusetts, had little coin currency;

the

months ahead. Joseph C. Welman,
Mo., elected President of j
Association for ensuing year; Lee P. Miller, Presi¬
dent of Citizens Fidelity Bank and Trust Co., Louisville, ;

be faced during the

The
of

out

depression, politics will again enter

to aid farmer has become a

jhuge sums in foreign aid may well force drastic
economic managers
;and set far back the day when the situation in
t;hat country will be what the rulers had ex¬
pected at a much earlier date. Huge sums from
have

ers

boomerang
to point where we now have a 48-cent dollar, highest
money in circulation, and still depressed farm prices.
plentiful

Revision of the plans of the

hbroad

Speakers at Atlantic City meeting address 7,000 bank¬
on inflationary, competitive, and world problems to

were we

uncontrolled

praises Hamilton's prescience, virtues of

head

financial crisis,
temporarily resolved by further

said

gold standard, and Carter Glass' opposition to certain
New Deal money legislation. Offers program to combat
current inflation, and recalls how 1933 advocacy^of

powerful ruling clique. It may be idle to talk
about a "day of reckoning" in Moscow, but it is
highly probable that the Kremlin rulers would
be much happier if their economic troubles were
*-:; i

notice that

Annu al Convention

banking, the issuance of money, and the fixing
of its value.7" The Senate Banking and Currency Com¬

progress in the production of certain
jlypes of goods; particularly war equipment, but
it is evident that as producer and distributer of
■!hose things that the Russian people need and
'Want in their everyday lives the Russian economy
'lias, benen anything but a brilliant success despite
Ae strenuous efforts of an able and quite all-

:' '

Virginia

i narked

behind them.

experience another period of

inflation

industrial machinery. There may have been

States Senator From

Senator Robertson

apostles of
totalitarian economics, whether they preach the
qxtreme form found in Soviet Russia or the more
i moderate variety as in India and Britain. Russia
lias unquestionably made great strides in science
j.nd probably in the production and installation
-

WILLIS ROBERTSON*

By HONORABLE A.

ABA Holds 83rd

Sound Money

vs.

ASSOCIATION

Exchange Place,

Teletype

300 Montgomery

St., San Francisco, Calif.

(1430)

The Commercial and Financial Chronicle

For Banks, Brokers,

The Security I Like Best

Dealers only

When you need

assistance

Counter

seasoned

Over-the-

securities,

our

they

ore

be regarded,

Members New York Stock
and American Stock
The Yale & Towne

disposal.

choose

securitv

Exchange

best

not

ficiently

easv

Exchange

120 Broadway, New York
WOrth 4-2300

Teletype NY 1-40

BOSTON

PHILADELPHIA

•
•

FRANCISCO

BAN

1899.

one

fieids

prise

worth

■hjKmHI

revolu-

Stanley Heller

to Principal Cities

tionary invention

discov-

ery—hence
Towne

Specialists in
as

SCRIP

McDonnell & Co.
jvieinoers

extending

the

TEL. REctor 2-7815

of the YALE

"original"

LOCK,

eenius

just improve

truly

was

that

upon

did

the popular

entirely

ficient

Industrie*

NEW

Life Insurance Co. of Va.

Commonwealth Natural Gat

business

far-

and

acumen

STRADER and COMPANY, Inc.
Lynchburg, Va.

SCIENTIFIC

MANAGE-

which the present

upon

pioneer

its

company

field

now

The

Opportunities Unlimited
in japan
Monthly Stock

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

61 Broadway, New York 6, N. Y.

Telephone: BOwling Green 9-0187
orders

for

offer

solicitation

for

particular securities

any

Orders Executed

Salt Lake Stock

Exchange

revolutionary

recognized

in our

encyclo-

Indeed,

Webster's

year

net

company

principal

International

Die-

tionary the only kind of lock given
listing among the more
than

half

billion

words

the product—perhaps my
primary reason for selecting Yale
& Towne as the
Security I Like
Best

today! •
Henry Robinson
graduate

Towne,

Com.

??7ejUV1"
^F*}8!5e'

t?-

•

Midvale

was

Steel

Bait

Lake

Stock

q||,ect private wire to Salt
Lake

de-

organizing the
manufacturing

with

the

Cramp's ShipHe is credited

origination

Scientific

Management in business.

Exchange PI., Jersey City, N. J.
Teletype JCY 119
N. Y. Telephone
Dlgby 9-3424

City

Bankers

Broadway, N.Y. 6 COrtlandt 7-5689

& Elec-

Canadian

Division, St.
Ontario, Canada.

rines,

Catha-

(Yale
Locks of all kinds; Builders'Fin-'

ishing Hardware; Door Closers;
Materials Handling
Equipment.)

pro-

Diesel

Firm Trading
in

Ail

Electric

Powered

Lift

Trucks.)'
Manufacturers

Belgium,

Italy,

—

PIPE LINES
Limited

WISENER

AND

COMPANY

LIMITED

King St. West

Toronto, Canada
EMplre 3420*

Trading Oept.

Licensed

France,

Securities

TRANS-CANADA

Hoists; Gas,

Markets Maintained

the

Spain,

the

New

York

Burns Bros. & Denton
INC.

Stock
37 Wall

•

Street, New York 5, N. T.

RAwnrn

Underwriters—Distributors

•

^ TTr

„

Harn8' Uphara & Co" New York

Nat,onal Lead Company

In
the
past
decade
National
Lead has had a 1000% market
ap-

preciation, and the company's potential is so impressive that in the

C*Y

Dealers

does n?t.mine orrefine

lead

as:\he name implies: It purchases
leac| which is sold at a fixed

mark-up,

and

actually

can

next ten years,

its

||
"K
\

§■

Canadian and Domestic

P'*lces a£e low than when they are
skyrocketing,

growth

Since 1946, the^company's sales
have increased by 245% and durreported in^ ''he same period net income
Pr°fits
every fose 855%, while dividends have
year
since it heen boosted 592%, The managewas
incorpo- "ient °I this diversified company
rated in 1891,- aj? stated that there is hardly an
and
it
has industry in_the country that Napaid dividends J.ic!nal .Lead "oes
do some~
a s

'*■
'

Investment Securities

make a larger profit when lead

may be almost
This

dynamic.

company

has

many

books

subject, and

and
one,

He wrote

treatises

entitled

the

"Prin-

ciples of Scientific Management,"
Published in 1911

was

Towne

Yale

and

the

Kay Vogei

employed by
in

Thereafter

himself

managements

Exchange)

Investment

ric Hoists.)

Contractors Machineiy Division, hsted on
Bata"a, «. Y.
Exchange.

Company

concerns, including the Bethlehem
Steel Company, and

CAPPER & CO.

111

England. (Yale Electric Industrial

and Serv'
..
P
ice
Centers
in
principal cities
Automatic Transportation Com- :■Throughout the world..
pany i3ivision
Chicago, 111.
'
Yale & Towne common
stock is
rnntrn^nrc

building Company.

(Members

;

Tokyo, Japan
Brokers

^10sers-)
British Materials Handling DiviWednesfield, Staffordshire

without inter-

voted

Lawyers Mortgage

Yamaichi Securities Co., Ltd.

ruption ^since
products are the railroad, oil,
1906. Its cap-• -hprne appl^nce, and construction
italization i s iricustries.

Philadelphia.

Reeves Soundcraft

Inc.

Australia and Japan,
Office, Philadelphia, - Sales Represenatives

centrai

expanded to 17 plants and employs
some
17,000 "hands!" To him we

1878 and 1889 he

Horizons Titanium

Company

York,

Affiliate of

New

engineering
from the University of
Pennsylvania, joined with Linus Yale in
establishing the Yale & Towne
Lock Company in October 1868 in
Stamford, Conn., housed in one
small building and
employing 30
"hands." Today, the business has

the

White Star Oil

Hardware;

Lift Trucks; Hand Chains

Materials Handling Divisions:
Yale Materials Handling Divi-

Stevens Institute in 1883. Between

Pfd.

Securities

ficiency Engineer, graduated from

Herold Radio

write

The company is
presently organ-

product
to the market.
Frederick Winslow Taylor, Ef-

Springs

information

Yamaichi

of Yale's genius

Air

Call

sion,

ized ak, follows:

extend second honors for his initiative in introducing the

current

T->nnr* fishing

Operating Divisions and Products

the
latest edition is YALE LOCK.
Thus is established the uniqueness

™

pany's Lock and Hardware operations will set a new sales record
this year.

The

„

w-n

0,,'n^

new

$3.00 per share to be
chalked up this year. The Com-

separate

honor

Nomura Securities Co., Ltd.

unique

paedias and dictionaries.
in

not

„•

around

gjcn

character of young Yale s invention

TWX LY 77

ducer of materials handling equipGerman
Division,
Velbert
ipent, notably the Fork Lift Truck. Rheinland, Germany. ■ (Yale and
A recently introduced truck of BKS Locks of all
kinds; Door
this sort has lifting capacities Closers; Builders'Finishing Hardorigina- ranging from 15,000 to 20,000 lbs. ware; Yale and BKS

MENT, under whose guidance and
advice, Towne laid the foundation
a

This

expect

T,,

t3„.+.

locking

securely rests,

economy as a

of the

offices

STOCKS
For

Divisions Outside of the U.S.A.:

Efficiency Engineer, the
tor

our

and

this

affected

branch

our

JAPANESE

P|an^s a^ Franklin Park and AdctlS0n» HI.)

With

use

Powdered Metal
+rii,e Components, wi th

to ap-

favorably

Development, Divi-

Corporation, Chrysler

-t

sightedness to sense the profitmaking possibilities in the mass
production of the Yale Lock;
(4) Frederick Winslow Taylor,

American Furniture

for

quarter

the full productive

? ^et^roduSjs

p,.,!

In conclusion, may I point out
that the Yale & Towne business
(3) 'Henry Robinson Towne, has become greatly extended beMechanical
Engineer, had suf- y°nd the lock and hardware field,
upon

device;

Trading Interest In

Write

fourth

ci?L

during

the

NY 1-1557

Mobile, Ala.
Direct wires

mdg New York City. (Financing
ieasing subsidiary for Materials Handling
Equipment.)
t-.

came

HAnover 2-0700

New Orleans, La. Birmingham, Ala.

and

net

share.

per

Research &

xhe MHE

the expansion program
completed
for the year, net earnings

facilities,

Linus Yale Jr., the inventor

fasteners of his day; but ventured

BROADWAY, NEW YORK S

LD 39

proximately 25c

should

not

Exchange
Exchange

Bassett Furniture

were

Service

sion, Valley Forge, Pa.

the net earnings per share
equivalent to $1.24. These

business ip accordance with the
high tradition established by the

(2)

120

and

$1.50

of the year, the
share was $28.41.

non-recurring charges

The present management is

carrying

low of 27*. As of the

per

founders 89 years ago;

Since 1917

New York Stpck
American Stock

Co.

5,,™ may be summadz€d
follows.
(1)

RIGHTS

choice—The Yale

Manufacturing

rate

For the first half of 1957, after
non recurring charges incurred to
complete a notable expansion program,

34* to

HWfl beginning

upon

—

one

Private Wires

BTH

pn-

present

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

Other Domestic Divisions:
■*

The price range thus
far this year has been from a high

m o r e

The

Lock

Division,
Ridgeway Center, Stamford, Conn,
Norton Door Closer
Company
Division, Berrien Springs, Mich,

per annum.

vate enter-

CHICAGO

Bank

the capital stock since

outstanding
leadership in

Member

Stock

American

tinuously

Members New York Stock
Exchange
American Stock
Exchange

Members

Yale Lock & Hardware, Central
Office, White Plains, N. Y.
•

Dividends have been paid con-

based upon

Established 1920
Associate

choice

should

Steiner,Rouse&Co.

Lock and Hardware Divisions:

household word in practically

Bought—Sold■—Quoted

Co.,
=

WMbL;Jevery land.

America.

Such

Corporation

fWfflM

Rfcy

out

consequence is that today,
the YALE trademark has become

■If"

Company

Dept., Harris, Upham &
New York City (page 2).

wHPThe

man-

abound

Lead

Louisiana Securities

^vestment Advisory

has been developed.

enter-

management

Towne Mfg. Co.—Stanley

National

Alabama &

Heller, Partner, Stanley Heller
& Co., New York City (page 2).

which the distinctively American
process' of Mass Production, with
the whole world as its market,

the

nancedandef-

prises

Ya*e

Taylor's guidance, then,
be said that the present

"know how"

fi-

aged

may

Their Selections

Yale
&
Towne
Manufacturing
Company pioneered in the sort of

(

Dresentation

Soundly

New York Hanseatic

Forum Participants and

particular security.

intended

not

be, nor
sell the securities discussed.)
are

Under

Manufacturing Co.

for

Stanley Heller & Co., New York City

at your

are

offer

as an

STANLEY HELLER

long experience and com¬
plete facilities

for favoring

reasons

(The articles contained in this forum

nationwide

and

coverage

participate and give their

.Thursday, October 3, 1957

„

A continuous forum in which, each
week, a different group of experts
In the investment and advisory field from all sections of the
country

Try "HANSEATIC"

dedicated to
&

Manufacturing Company.

Towne

an(I

two

small

simple,

very

with

debt

preferred

issues

Ihmg for. Important

The company s corporate name
1S rather a misnomer as the 1956
Product breakdown in the table
.

ahead of approximately 11.6 ifoiW^elow illustrates.
Hon common shares. National
Continued
Paints, Pigments, Oils
Fabricated Metal Products:

consumers of

page
37%

Tubes, Plate, Babbitt, Sheet, Ripe
Die Castings:
Zinc, Aluminum, and Magnesium
Railway Journal Bearings and Valves
Oil Well Drilling Muds and Chemicals

Over-the-Counter

Quotation Services
for 43 Years

19%
20%
8%

National Quotation Bureau
Incorporated

11%

Miscellaneous:

Established 1913

Refractories, Titanium, Chemicals, Containers, etc._
/

46 Front Street
CHICAGO

100%

NewYork4»N.Y.
BAN

FRANCISCO

INDEX

Fundamental Principles Foz

—George

—John

;

course,

to support current monetary and
policies which "may already be taking hold."

labor and

•

consumers

found

—Hon.

■

the attitude of

Chance of

sidered
;

•

tives for which every

prejudice or

—Erie

people

the

even
*

exclusion

tire

matters

-J

and

interest

public

concern.

obscured

were

lost

some

nity to establish either.

o{ the
.

greatest military strength in

now

■

Members Salt Lake City Stock

self
'

f116'

Praised

Assistant

Wren___

•',*

^mentals

Accepted Fundamentals

agree.

{

•

lion of

people

our

were

Business

Quarter

t Report

We stand for a

growing economy at home to make
possible that adequate defense and

.A.w

Humnhrpv

1 "George Humphrey Appreciation

Funds

—

Notes

Reporter

Our

Members New York

Weekly

•

TELEPHONE HAnover 2-4300

•

Nashville

'
j

Reg. Ur-S. Patent Offiee

•

„

•

Boston
•

•

Place. New York 7, N. Y.

REctor 2-9570 to 9576

HERBERT D. SEIBERT, Editor A

'Chlcaf •

Schenectady

•

„

c/o Edwards

Thursday, October 3,

j
j

Publisher

1957.

Glens Falls
>

25, 1942, at the post
York, N: Y., underthe A6t ot

statistical

state and

Other

Chicago

city news.
Offices:

HI.

market quotation
bank clearings,
etc.V "
t.
! \

Issue

corporation

•

Subscription

Union,

—

South

La. Salle

Gulf Sulphur

St.,

(Telephone STate 2-0613);

...

at "New
March 8,1879

Rates

per

ye*r;

■

8
of
in

of the fluctuations to
of exch-a~»t,tances for for¬

Msements must

6ubs'"',v-"

made in New

NEW YORK 6

WHitehall 3-3960
Teletype NY 1-4040

&x4041

Publications

NoCe—On account

rate

INCORPORATED

39 BROADWAY,

the

r. 1. FRANKEL & CI

$63.00'' per- year

Bapk and Quotation Record — Monthly
$4t .1 pei year
(Foreign postage extra.)

eign

office

$60.00

Canada,

Pan American

Eng¬

Other Countries. $67 00 per year

news,

135

Subscrijitions in United States, V.
Possessions,
Territories and Members
Pan-American

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

second-class matter Febru¬

Other

E.
'

London.

& Smith

Company

Dominion

Y. ^

Worcester

Gardens,

Drapers'

WILLIAM DANA SEIBERT. President

TELETYPE N. Y. 1-5

• '

Reentered

B./0ANA COMPANY, Publishers

ParX

plete
Albany

FINANCIAL CHRONICLE

Sulphur-

Topp Industries

Sweek.

Stock Exchange

ST., NEW YORK 4, N.

land,

ary

—

-J——

■

{

Spencer Trask & Co.
25 BROAD

Best——./

^Column ncft available this

Mexican Gulf

57
:

and You-^-By Wallace Streete———.

Washington and You—

■*

54
—

Salesman's Corner.

Published Twice

Vitro Corp.

The State of Trade and Industry

WILLIAM

——.

Offerings

Security

The Security I Like

;

PREFERRED STOCKS

specialized in

Securities Now in Registration!

The Market,

Lithium Corp.

——

The COMMERCIAL and

have

Securities

Chicago

—.

Public Utility Securities.—_—L—-—t.—__i—

Railroad

——

—

Governments——^—
Reporter's Report—.

Our

Los Angeles
Dallas

Philadelphia

———

Observations—A. Wilfred May

Direct Wires to

.—

—

News About Banks and Bankers

page:52
v.

-Teletype NY 1-1825 & 1-4844;

NSTA

Prospective

Continued

Bookshelf—_______—_________

Mutual

taxes, has increased > about
.

40 Exchange PI., N.Y.

HA 2-0270

family income, after Federal ;in-

—

Einzig: "U. S. A. Dollar Aid Hinders Britain's Recovery"..
From Washington Ahead of the News—-Carlisle Bargeron.
Indications of Current Business Activity—

gainfully

1937 until the beginning of World-

Dioner" Come

&Mackie,inc.
Cover

War II.

.R6?5^7C.Fund

——

————

Coming Events in the Investment Field.———.—_____
Dealer-Broker Investment Recommendations—

provide for continually better
The record of the past four
Jiving for all our people,years is also a record of rising
;
We stand for freedom of the in- levels of living, widely shared,
dividual, protected always in his During this period, average annual
*A

Request
oii Request

Singer# Bean

(Editorial)-—:

Man's

Business

See

Prospectus

Bank and Insurance Stocks——

Pea*

,^?e

ready. .has averaged less than 4% of the
The average
higher 'than
extrava- 4%
during the preceding four
years/ and was as .high as 15%

free, healthy and

Regular Features

We stand for modern and

gance.

Assoc-*- {~v,

;

Electronic Research

and General

Purchasing Agents Report Renewed Optimism on Fourth-

defense, efficiently maintained, a civilian labor force.
defense
made stronger by the unemployment was

•

Sylvanite Goldf

(Letter to Editor)

Savers

Affect

some

elimination of waste and

Teletype: SU 155

Pacific Uranium

Harvey Firestone Optimistic on Tire Sales

of the funda-. employed, an increase of 3,700,000 s
upon which we can all in only four years. - During the ^
same four years,
unemployment
are

Exchange PL, Salt Lake City

DAvis 8-8786

Frederick Shull Avers Gold Devaluation Would Adversely

Last year an average of 65 mil-

Trust Division's Activities____ 40

Diamond Anniversary

✓

record of equaled f>ros-

HEnderson 4^6504

Teletype: JCY 1160

San Francisco Division of Pacific Coast Exchange Celebrates

perity with both the blessing^ arid
prob]ems 0f such a period.

'!•' These
,

It is

Exchange PI., Jersey City

DIgby 4-4970

TMT Trailer Ferry

things for which our party stands.it is a record of more and better
Greater unity-about these main jobs, more homes, more cars, more
is something we must leisure, and more recreation.

within the party at all

Cover

Savings' Deposits at Ail-Time High—

Mutual

our

whether you consider yournew Republican or. an old

Exch.

Spokane Stock Exchange

of National Bank Division 40
A. K. Davis Discusses Role of State Bank Division.
41
Resolutions Adopted at the Convention
41
National Advertising Program Recommended
42
New Heads of ABA Divisions and State Ass'n Section____ 42
Staff Titles and Organizational Changes—
42
Backgrounds of New Top ABA Officials—-.
42
1958 Meeting to Be Held in Chicago—
43

; objectives

J.F.Reilly&Co., Inc.

Sam M. Fleming Reviews Work

ion in a vigorous party as to wheni
A
Record of Prosperity
and { how things might best be
It is a record of a prospering
done, or what particular programs
✓
might- merit priority.
But there America with new high levels of
'i should never be any fundamental employment, rising income,: and
difference
as
to the principal increasing purchasing power-,

J Preserve

Association Holds 83rd Annual

by Treasury Head, Robert B. Anderson, and

history to assure our security*

are

'•

'■

Paul

record of providing the

and,; of course,

There

sis

...

Thoburn Mills Reports on

alv/ays will be differences of opin-

~.v

Inflation—Clarence E. Manion__ 37

ABA's Efforts in Promoting Savings Bond Sales

Solving Agricultural Problems

Convention

jlon<*b state, county and municipal

Message from President Eisenhower.

within Republican ranks m&istmg on these basic concepts,
.must be paramount to any per- our party can grow in stature and
sonal claims.
To promote thb effective performance _at the na; greatest unity and, therefore, the
greatest power for the party, we levt-ls•
•
•
must let nothing distract us from
The record of America in the
driving forward as a unit on the Past four years has been a brilliant
basic principles f o r which we one of adherence to the objectives
stand and upon which we can all I have mentioned.
is

■_,.

B. AMERICAN

MACHINERY

________

——

Few Tasks Ahead—Malcolm Bryan—

American Bankers

purpose

#
......

By vigorously and aggressively

agree.

TMT TRAILER

-William L. Myers.—

government in the
le_

role

an^

opportuUnity of

often lost the

Pace,

Banks Must Help Fight

against
political faiths which have differ-

and the disunity

; personal program,
resulting

member of

Thorneycroft—
of Defense Is Not a Military One Alone

Realistically

Basic

—

Peter

—Frank

ent ideas and.ideals .about the-imPJir^clPies p0rtance of individual freedom

Price

objec¬

22
24

—Hon.
v

CHEMICAL
/

■

United Kingdom Policies and the U. S, A.

must work in greater unity

Geo. Humphrey

Understanding the Big Debate—Roger M. Blough—

HYDROCARBON

'—^-1—

Challenge—Benjamin Strong— 20

Inseparable Twins—Daniel W. Hogan, Jr

objectives that we

of these

ment

general

great

;

•i>

that

Republican Party cdn firmly
stand. It is for the further fulfill¬

en-

—I

—Hon. Ray M. Gidney

A Hard Look at

fundamental

are

_!_i—

Cocke

FDlC's Role in Nation's Bank Economy *

the

•

These

CHEMICAL

Sound Money—Senator A. Willis Robertson_Cover

vs.

Common Stocks: The Big

advantageous,
often to the

WHitehall 4-6551

GUARDIAN

only which free individuals cannot so well do by and for them¬
selves.

STREET, NEW YORK

WALL

Telephone:

Planting the Roots for Banking's Development

equality with the
equal rights of others or for the
Government to do those things

most

Politics

freedom upon an

opinions for ;
what they per¬
son ally ^con¬

4 CORNERS URANIUM

only to keep the exercise of

peo-/
pie in holding
;; to their
own r
so many

obsoletes!

your

ABA Addresses and Convention News

We stand for government inter-

i———__u——— 11

Anderson

13
CobIeigh_____
Decade in Insurance Stocks—Shelby Cullom Davis 14
on the Horizon—Brig. Gen, David Sarnoff______u
16

Electronics

for

fiscal

vention in the. lives of our

—cash

Banks Along the Mohawk—Ira U.

tion that it is today.
-

ference was
7

Robert B.

,vi

life,'but the most made this country the great na-

striking dif¬

The Arrow in the West—Norman R. Sutherland!—

■)-.

many

riehce iit private
"■

Development of Sound Economies in the Nations of the World

things in Wash- freedom of choice, knowing that
ington which were different or free men working freely with the
done differently than in my expe- hope of well-earned reward have
I

TICKETS

Commercial Banking

The Present Rail Outlook—W. Wendell Reuss—_

problem" of inflation will not be solved by returning to past
Democratic policies. Terming inflation a problem of prosperity
and not adversity, Mr. Humphrey urges government, business/

■

TO WORLD SERIES

—Raymond Rodgers

ex-Treasury Secretary proudly recounts
the manifold accomplishments of the Republican Administration
and warns that the still unsolved "serious domestic economic

inflationary

Linen——

Inflation and Its Significance to

fiscal anti-

current monetary and

Abjuring departure from

NEXT BEST THING

Rates—Roy L.* Reierson

Financing Inter-Municipal Public Project Developments

Corporation, Pittsburgh, Pa. V

AWP COMPANY :

Humphrey——

New Climate for Interest

Secretary of the Treasury

Chairman, National Steel

Page

Sound Future

Fundamental Principles for a

By GEORGE M. HUMPHREY*

llCHIEIWflfl

Articles and News

A Sound Future
Former

(1431)

Chronicle

The Commercial and Financial

Number 5678

Volume 186

York funds.

Direct

PHILADELPHIA
SALT

Wires to-

DENVER

LAKE CITY

(1432)

The Commercial and Financial
Chronicle

the operation of

New Climate for Interest Rates

ket

result,

interest

rates

United

States; our discount rate,
3V2%, compares with 5% in
Sweden, 4^2% in Belgium, 4% in
Germany, and about 4% in Can¬

dampening of business optimism prompts banker-econ¬

omist Reierson to reappraise the forces

Notes:

rate trend.

(1)

affecting the interest

ada.

Bank

State of Trade

tight; (2) 1958 investment spending
be topping off not far below record 1957 level; (3) slight
ease in savings
shortage; and possible halt to cost-price rise
and tight employment. Concludes that though interest rates

may

be at their peak and

may

expect

The past

three

idly

demonstrated
problems posed by
vestment
been

lent:

some

the

tance

has

that

excel¬

States,

has

reached

new

peaks,
higher

than

has

after
But

duction
and

costs

WM&--

whole
a

huge

world
wave

States,

recent

3.6%

yield quoted in the
for example.
Seen

cheap,

the

of invest-

the

large amount
recently raised here by

funds

Canadian

other foreign bor¬

and

rowers.

Heavy

Demands

Although

broad

Home

perspective

the increased cost of credit in the
United States appears as

world-wide

interest

trend,

rates

part of
rise in

the

this

country is

the specific result of the
huge de¬

mands for funds generated
by the
expansion of our economy.
The

Roy L. Reierson

activity; industrial facilities basic factor was the upturn in
being increased, new housing business which began in the latter
being built on a large scale, part of 1954 and which pushed the

public

sustained

works

being pushed
ahead, and large sums are being
spent to develop additional sources
of energy.
As a result, demands
for capital in most countries have

economic

expansion—the cost of money, too,
has moved upward.

are

national

output to successive

peaks.

Such

tivity

inevitably

new

rise in business

requires

boiTOwers

fronted

ac¬

been

are

everywhere
difficult

with

been

are

reexamined

and

reduced.
At

present,

has

several times in the

happened

course

current upsweep in interest
we

of hesitation

that

the

There is

three

great

years

demands

for

and

pe¬

question¬

growing

boom

the

rates,

again find ourselves in

riod
ing.

feelipg

the

past

tapering off, that

funds

become
less pressing, and that bond
yields
may be near a peak, at least for
the time being.
Assuredly, simi¬
lar beliefs have prevailed earlier
this year, last year and the
year
may

this

events.

time,-perhaps

and

were

generally kept
World War II as

through

part of the system of
More

and

more,

war

the

finance.

attempt

maintain interest rates at artifi¬
cially low levels led to impossible
conflicts and quandaries. In

effect,

uted to

added

rising

fuel

obviously contrib¬
money supply and

inflation.

Conse¬

quently, it became generally nec¬
essary to adopt various measures
for controlling the use of
credit,
the

rationing of capital,
imposition of ceilings upon
loans, or the subjecting of
types of financing to

special

regulation.

Such

tech¬

niques

succeeded, at least for a
while, in holding rates down for

strongly

favored borrowers but did
not, of
course, help would-be borrowers
outside the pale. One
by one, cen¬
tral banks and
governments even¬

major forces at work upon inter¬
est rates.

tually reshaped their policies in

*An address by Mr. Reierson
before
the National Association of State
Audi«
tors. Comptrollers and Treasurers, Hart¬
ford. Onn.. Sept. 25, 1957.
; ;

.order to, cope with a vigorous and
sustained investment boom,;> and
allowed interest rates to reflect

;'-i.

ily throughout.
Another important boost to fi¬
nancing demands stemmed from
strong and persistent rise in
production costs. Prices of indus¬
the

trial

products,

which

had

costs of construction and of

been

capital

equipment, where credit needs
bulk
especially large, increased
even

rapidly than prices in

general.

the

particular

than in the past, the business news
calls
for
a
reappraisal of the

ing on public works by state and
local governments advanced stead¬

keeping central firming since 1952, began to ad¬
bank credit readily available at vance smartly in 1955; farm prices
easy terms; in an expansive en¬ touched bottom in that year andbegan to improve. In addition, the
vironment this
such efforts meant

bank

Nevertheless,
more

alive

such

before, only to be refuted by the
course

1930'3

some

borrowings have been deferred

inherited from the depressed

were

con¬

decisions;
expenditures

contemplated

some

have

Auto

Industry

Production

Index

Business Failures

VL_
I

Reports

coming to nand this week on tne nations muUoirial
production were not as encouraging as
many business and indus¬
trial

leaders

and

the

public would

them

be.

awaited

The

While

demands

for

funds

rose

markedly, the supply of savings,
the other hand, lagged
behind;
fact, the flow of funds available
to major
lending and investing in¬
on

stitutions

has

not

changed

much in recent years.
tion is not altogether

savings flow
rise

fall

demand for

new

financing. More¬

over, an environment of

orice

had

very

This situa¬

unusual; the
does not ordinarily
quickly as does the

inflation, such

persistent
we have

for the past several
years, is

hardly

one

in...which people can

effectively be
crease

huge

increased

automotive

production

and

sales.

Presently the automotive industry is for the most
part giving
attention to 1958 model
changeovers and manu¬
facturers; are awaiting the public's
reception of their new models
before letting orders for sizable steel
tonnages. In this connec¬
its

undivided

tion

encouraging note was sounded last Friday
by "Ward's
Reports," which stated that "September new car
sales, based upon second 10-day reports are
exceeding all pre¬
vious expectations and are
running above September last year
by nearly 20%."
Automotive

Last

week

electric

energy

distributed by the

electric light
power industry suffered a mild recession in
output follow¬
ing modest improvement in the preceding period.
Carloadings
too, in the latest week, eased as well as the wholesale
commodity
and for price indices. In retail
trade, reports state that continued
and

hot

weather

discouraged consumer buying in many regions the
week, and as a consequence, total dollar volume showed
slight declines both for the week and the like period a
past

year ago.

encouraged

their current

demands

The nation's

employment situation for the week ended Sept.
21, shows that new claims for unemployment compensation de¬
clined largely because of a
tapering off of layoffs in tne auto
industry, the The United States Department of Labor reported.
The

before.

claims totaled

new

For

231,900, down 23,100 from the

the week ending Sept.

185,300.

;
\
payment

unemployment

...

arc

phased'to

announce

which run a week
behind the statistics on new
claims, have not yet shown the pick¬
up in the auto industry.
As of Sept. 14, 1,169,200 were on the
unemployed payment rolls, up 43,000 from the week before.
Business

in the fourth quarter will be
good, the September
of the National Association of Purchasing Agents shows.
Reflecting a renewed optimism that fourth quarter business
will match earlier
predictions, it added that of purchasing agents
surveyed, 32% look for higher production in the fourth period,
40%i said production would be in the same and
only 22% believe
production would decline.
survey

On new orders, 36% of the agents
anticipate a pickup, 44%
expect the same level and 20% see lower levels.
However, while 72% of the purchasing agents said no change
was
contemplated in their capital expansion plans for the re¬
mainder of 1957, some 20% did indicate cutbacks
are
planned.
Inventories of 34% of the agents are lower than
a
month

51% are the same and only 15% listed increases.
-Higher prices are reported by 51%, down from 57% a month
ago; the:same prices are reported by 42%
and 7%
reported
ago,

decreases.

•

In the steel

industry this week slumping iron and steel scrap
prices reflect the unexpectedly slow fall pickup in steel demand,
Age," national metalworking weekly. Reporting
on
scrap, it adds, "the bottom dropped out of scrap prices last

states "The Iron

and the decline is expected to continue."
Iron Age" composite price of
scrap is
from last December's all-time high of
more than
The new prices are about on a par with those
week

"The

off about 40%

$65 a gross ton.
prevailing at the

bottom
A

opinions

slump.
of sellers and buyers of scrap
the sharp drop in prices, but the

advanced
little

last spring's

was

zip

that

the

interest in

mills

new

loaded

are

survey

developed varied
most, of ten

reason

with

scrap

and

interest rates

was

than it has in recent weeks.

dealers and buyers figure scrap
will develop new mill buying.

However, some brokers,
prices are nearing a level that

Meanwhile, the "creeping improvement" in steel during the

in¬

Continued

investment

natural

con¬

sequence of market forces.,

WILLIAM K. BOSSE
has

The Role of the Federal Reserve
The

joined

our

in the

firm

senior

as a

analyst

underwriting department

Reserve has not
acted to push rates
upward. This

sional

serve

Cruttenden, Podesta
Members Tiew york Stock

•

Chicago

Telephone DEarborn
DENVER

4, Illinois

misinterpretation
of
played by the Federal

the

in the interest rate
picture.
the aim of Federal Re¬

Rather,
serve

the expansion of bank
credit from

becoming
ically to
term

ST. LOUIS

MADISON

INDIANAPOLIS
CEDAR RAPIDS

OMAHA
ST. PAUL

HAS

BEEN ADMITTED AS A PARTNER

IN THE FIRM

policy has been to prevent

tKe

credit

substitute

are

substantial volume of

Continued

72 WALL STREET

•

NEW YORK

in short

Thus, credit policy has not pre¬
vented the commercial banks from
a

PORTER

and specif¬
rise of short-

savings which

providing

SANDERSON

excessive,
curb

bank

for the

2-0500

M. A. VREELAND

Re¬

supply.
LINCOLN

GRAND RAPIDS

Co.

Exchange and Other Principal
Exchanges

209 South La Salle Street

NEW YORK

WE TAKE PLEASURE IN ANNOUNCING THAT

Federal

ooint, although obvious, deserves
emphasis in view of the occa¬
^ole

page

have

buying unless the steel market shows

pressing upon a limited sup¬
ply of savings, a sharp firming of

that

was

figures,

savings. With

for

week

total

Total

ago, the

year

cunds

MILWAUKEB

much

pick-up in steel demand thus far has not materialized.
Some slight improvement has been
noted, but the increase has
fallen short ot' expectations. An
important factor in this "creeping
improvement" as "The Iron Age" describes it this
week hinges

addi¬

tional credit to finance
higher pro¬

duction, sales,
inventories, and
running substantially ahead payrolls. In addition, there was
charged with re¬
of current savings, and interest
particularly vigorous expansion in
sponsibility for the financing de¬
rates have advanced
those sectors of the
sharply.
cisions of governments need
economy which
are
heavy users of long-term
These powerful'economic forces
hardly be reminded that interest
funds—at first homebuilding, sub¬
rates have just recently set new have within the
past decade swept
high marks for more than a quar¬ aside the easy money, low interest sequently business outlays on
plant and enuipment. Also, spend¬
ter century. As a result, long-term rate doctrines and
policies that
Those who

Trade

Price

lent
ire

have

era

the

lidst of

pro¬
costs

significantly, and—as always

eco¬

comparable

probably greater than any
;uch development in the past. Alnost

living

risen

expansion,

ind

in¬

flation has in¬

tensified,

\ " ,4"

year.

price

nomic

fff

the

evidenced
of

In the day-to-

remendous, practically global
WwWMhv

in¬

creased year

the

with
long-

from abroad, credit in the United
States is still relatively

ose

are

ever, and out¬

put

but

lay conduct of affairs, we tend to
sight of the fact that the
United States boom is part of a

in¬

comes

and

limited to the United
is essentially world-

vide in character.

cope

And

Netherlands,

fundamentally, to realize
rising trend of interest

is not

low the
approximately 5!£% yield
prevailing in the United Kingdom

the

rates

employ-

effort

Government bonds of
long maturity, are materially be¬

It is perhaps of small comfort to
borrowers, but of great impor¬

dynamic in¬

and

unusually high level

exemplified

Worldwide Investment Boom

in broad terms,

boom,

business

have viv¬

years

yigld

latent inflation.

now

term rates in the United

money

surprise return of the

the

progressive inflation.

market easier later on, there
expect radical money market change, and

reason now

not

Retail

Commodity Price Index
Food

.Just last week, moreover, the
of England has raised its

rate

demand for funds still leaves

near term

short-term credit very

Production

Electric Output

Carloadings

Recent

Steel

The

many important countries abroad
have risen much more than in the

Vice-President and Economist, Bankers Trust
Co.,
New York City

Thursday, October 3, 1957

mar¬

forces.

By ROY L. REIERSON*

underlying

...

OCTOBER 1,1937

page

(1433)

financial Chronicle

The Commercial unci

Number 5678

Volume 186

(c)

Observations

By JOHN S. LINEN*

By A. WILFRED MAY
INTERNATIONAL

THE x-FACTOR IN THE

Chase Manhattan banker

CURRENCY OUTLOOK

spilling

outcome

the

other

Mr.- Thor-

ity

ment.

program,

(1) By outright exchange spec¬
ulators acting as short-sellers of

the validity of

national

this

carry

in various channels:

auster-

be issued

can

speculation against sterling occurs

neycroft's dra¬
matic

Germany and
countries will follow. Such
of

problem

municipal boundaries and creating

over

tion by a great

The cost of maintenance
short position, on
the
difference between spot and for¬

literary figure,

obligations of

their

Mr.

late

and

States

economic

the

the results of the
restriction

and logic

rules

ports.

France.

of British

combination

should
work out successfully—or at least
German

and

expansion
here

characterized

Per

Jacobssen, Director of the Interna¬
tional Monetary Fund, in a talk
this

with

writer,

having

sporting chance*' and of even, per¬
haps, constituting a first step to¬

and

new

(that impor¬

cent and

a-half

the Germans'

reduction
four

con¬

from four-and-

properly,

were,

completely outside the
Fund, the impli¬
cations
are
of vital concern to

taken

auspices of the
that

organization

well

The Fund

United States Treasury.
serves

the

vital standby "nwney

whose
subscrip¬
$2.75 billion have come from

doctor" and direct prop, of
$8.9
tions

billion

capital

the United States.)

twin

countries'

actions

bank

the

rates

11 i

businessmen
of a long

rate

acquisition

Germany's Supplemental Action

Supplementing these effects of
Britain's raising of her
in

rate

rediscount

mitigating the impact of

speculation against
action

the

sterling, will

the

German

authorities in reducing their rate.
This
ment

will
as

stimulate

well

South America

home

invest¬

capital exports to
and elsewhere.

will help to relieve London in her

financing
both
by

sympathetic

understanding

constructive

assistance

pressure

should

re¬

$100

This had to do with the
billion Federal Government

Aid

Program

Region."

because of the

deemed necessary
automobile and our

S. Linen

John

development

economic

the

upon

length

the

tural

of¬

tion

engineering, cul-

that

social

Unless

and

be given appropriate atten- 1
vital policy decisions
are
made affecting costs, routing .
and land use. In the metropolian '
areas
it was also recognized that •'

where

the

or
neighboring
services can be
economically
and effectively on an area wide
basis than when several municipal
units
attempt to do this inde¬

their
we

history

to review

take time

and

the. progress of

adjacent

suburbs,

such

handled much more

pendently. This is conspicuously
legisla¬ present-day facilities and services true of water supply and sewage
that are considered essential.
tive changes will be in order and
disposal facilities*, which tie in
When many of our State consti¬
closely with public health and
responsible State officers should
tutions or legislative bills were
be well informed and well quali¬
general welfare of the community.
approved that control the borrow¬
fied to counsel and advise in such
When we consider the financing
ing and taxing authority of our of area-wide projects we discover
matters.
•,
,
local units of government the fol¬
a great lack of uniformity in
On occasion the lending of State
the
lowing conditions prevailed:
credit may be necessary for the
legislative authority that exists in
(a) the automobile was unknown our various States. Because areaover-all
good
of an important
or was a mere novelty.
wide financing, which appropri¬
segment of the population, but
this in turn should be jealously (b) the water supply was so plen¬ ately seeks to distribute the cost
tiful there was little or no over the area and people to be
guarded so that the States may at
concern
regarding the need served usually involves several
all times be well prepared to meet
Constitutional and

tions.

for

those

with

effectively

deal

and

limiting its use or

water

that are

Predicts Future Growth
to Germany
A few of the predictions for the
Their financ¬
ing in Hamburg and Frankfurt, next 20 years may help us better
stimulated by the rate differen¬ to appreciate the nature and sig¬
of
the
developments
tial, will relieve the pressure on nificance
London
for
sterling
exchange. with which we must deal:

about

Continued

pollution.

on page

Osborne &.

will

areas

than

J. R. Williston &.

and sev¬

politan

;

Chi-

H. Thomas Osborne "

Bradbury K.

Norman

York City.
7

F. L. LEE

that

JONES

About 75% of the total
growth, estimated at 63.3 mil¬
lion in 20 years, will be in
the

our

organization.

cities

(e) Over

suburb

this city

and

•

Thurlow

will in

turn

increase

J. Marsh

General Partners,

Nearly 75% of the total popu¬
the country will be

and

Cutler

Ralph Hinchman

be in the suburbs.

(f)

•

Charles H. Cunningham

suburbs.

and

75%

second to New

area

(d)

Go.

and the admission

grow

greater proportion.

and become as; a metro-

cago

Thurlow

with

Miami metropoli¬

Dallas and
tan

consolidation of

with pleasure the

We announce

San Francisco,

Angeles,

(a) Los

announce

Limited Partner

lation in

Mr.

Jones will be in charge of the

urban.
The

Railroad Division of the

Department

life, will

First

Boston Corporation

J. R. Williston

ceptable solutions. While they

will

call

ESTABLISHED

MEMBERS NEW

ac¬

increasingly

specific
areas
and should be dealt with
essentially by local groups of such
areas, legal authority may be inT
most

cases

address

meeting

AND OTHER

Mr.

Linen

of National Association

„

115

Broadway

New York

6, N. Y.

October 1, 1957

1889

YORK STOCK

LEADING STOCK AND

concern

before the
of State
Auditors, Comptrollers and Treasurers in
Hartford, Conn., Sept. 25, 1957.
*An

October 1, 1957

pattern

continue, insistently

for

and

The

that are arising

problems

from these changes in our
of

Investment Research

considerations **

may

needed.

State.

To deal with these

of the States.

and

countries

pleased to

the

direct effect

joined

Company

other countries as well as exports

other

■.
i
y,
provide a leadership in recom¬ volved.
mending conservative but objec¬
The increased attention that is
tive and forward looking changes
being given to metropolitan area T.
that will aid greatly in shaping
problems is a growing recognition
new legislation
and at the same of the obvious fact that in many
time
guard
properly the good situations involving public serv¬
name
and credit position of the ices to the citizens of cities and

urban areas, it

will also have

even

has

attended

most vexing prob¬
lems will be the ability to finance highway facilities should be cothe new projects required.
The ordinated with transit facilities
fiscal officers of the
State can where mass transportation is in¬

of .the

some

(b) The suburbs of these
eral other cities will

are

subject of "The New Highways—
Challenge
to
the
Metropolitan

Financing New Projects

Among

double.

\V e

ago

Insurance

Life

legislature and administrative

the

weeks

timely and .interesting con¬
ference in Hartford at the invita¬
tion of the Connecticut General

ficers of the State will be

resources

of international tradtp problems and obligations
German
exporters
to primarily theirs.

sterling in
a
number of ways.
First, there
Moreover, the cheapness of the
are the extremely important, spec¬
Continued on page 50
ulative transactions, whose heavy

lieve

Two
most

handling of the problems in ques¬ eral, state and municipal units of
tion.
It
is
at
this
point that government
was
discussed
at

(German imports).

two

were

able if desired,

appointed authority and yet

our

The impact here is lim¬

sterling.

Impact on Speculation
The

facilities

for

public
provided al¬
few

though ample space was avail¬

problems adequately and intel¬
ligently
will - require in many events, we forget how substantial
(3) By bankers in the non cases understanding and coopera¬ and radical the changes have been
sterling countries with
sterling tion
by the States if the local (1) that affect directly our mode
balances who have been selling
of life and (2) that demand the
areas are to find acceptable solu¬

rediscount rate from five to seven
current

position in other currencies.

of Britain's dramatic raising

per

curtail

their

with

initial measures
of her

(Although the

borrowing

markedly
short-s

curtailed.
will
such effective

availability

credit

The

raised

is to be

ited.

subsequent convertibility.

ward

remittance

of delaying

Now the cost

return

expanding

alloted

dependence
on
this means' of
" ^ ^ :
'• "
population trend and pre¬ adequate under present consti¬ transportation.
The
need
for thoughtNd and
dictions for the next 20-year span tutional or statutory provisions to
forward looking planning by fed- '
make it appropriate
permit any sound or effective

raised.

basis

the

was
and

The

sterling, is now sharply tant State officials be consulted
Speculators convinced of to what is
Bernard Shaw,
the
inevitability
of devaluation
likely to hap¬
may well he
will
be
scared
off by neither
A. Wilfred May
pen
in many
the final de¬
speeches nor the borrowing rate, of our metro¬
terminant. In
but
by the cold statistics.
So, politan areas.
this connection it must be realized while the more expensive carry¬
Not only will
that the austerity which will have
ing cost will act as a short-range the pressure
to be "taken" by the citizenry in
deterrent, it will not thus serve of a growing
England as the inescapable accom¬ permanently.
popul at ion
paniment of the logical and nec¬
(2) By the business "specula¬ create prob¬
essary policy of restriction will be
lems
w h i cJi
of a nature that would be
un¬ tors," who have been speeding up
their imports and slowing up the will tax the
acceptable to the voters in other
remittance receipts for their ex¬ ingenuity and
democracies, notably the United
the

time

recreation

the unconditional guaranty of a state or local govern¬
Discusses legislative or constitutional changes to permit
economical and effective area-wide public servicing.

ward

sterling.

characterisa¬

vehicles.

(e) little

finds unprecedented population flow, ;

essential public project
financing problems transcending local boundaries, has encour¬
aged undue use of special revenue or authority bonds at a
higher cost than necessary. Denying any selfish motivation,
Mr. Linen suggests using general obligations, as a less expen-> *
sive alternative, and when special revenue issues are still
preferred that proper legislative changes be made so bonds

dumped into

larger cities and horse-drawn

Bank

suburbs, which in turn poses complex,

pres¬
WASHINGTON, D. C. — "The volume, besides exertim*
British never feel moral unless sure on sterling, has obscured the
they are making themselves un¬ actual deterioration, in Germany's
budgetary and other domestic fi¬
comfortable/'
nancial position. If the speculative
Midst all the
exchange situation clears up, a
speculation by
cessation of the balance of pay¬
the experts on
ments

Vice-President, The Chase Manhattan

was

neighboring streams or han¬
dled largely by local cisterns
or cesspools.
(d) local transportation was lim¬
ited to a few steam trains,
some
electric trolleys in the

Financing Inter-Municipal
Public Project Developments

sbwage

raw

& Co.

EXCHANGE

COMMODITY EXCHANGES

* Telephone
BArclay 7-7500

il434)

The Commercial and
Financial Chronicle

outside

Inflation and Its

Significance
To Commercial Banking
By RAYMOND RODGERS*

New York University

resume

causal

Inflation
on

bankers
:ers.

old,

old

know

comes

epi¬
demic if they
don't

accelerated

r e s o

and
t

restrain

.3 of

ely

credit.

recently, month after month

great costs.

countered

But

is not

much the price advance
has given rise to re-

itself

with

that

hewed

concern

credit

infla¬

there could be

tion

may

with

cause

them to

impact of the

"creeping" in¬

Raymond

Rodgers

credit

the

years, as it has come
from non-monetary sources. Such
inl'lation has many
faces; it arises
from many and diverse
causes; it
is more dangerous in
many

the

res-

spectacular

and short-lived

such

"galloping" form,
suffered from
shortly

after the

war

1948.

As everyone
knows, inflation is
dangerous to a« nation, particularly to a democracy, as it im-

poverishes the middle class, the
backbone of the democratic form
of government.

Nonetheless, there
inflation,

are

many fallacies about
such as: (1) that the

heavy

cor-

porate expenditures for
expansion
production
capacity will

smother

the

with

sures

that

the

upward price
flood of

pres-

goods; (2)
increased pro-

greatly

ductivity flowing from our $6-7
billion annual expenditures on
research

ment,

research

—

research

manage-

materials, reproduction, research in

search in

products, research

;reduce costs and prevent
prices from rising, at
least, over
the long run; (3) that
the impact
of

inflation

cause

corporations

(as witness the greatly
price of equities), be-

increased

leads

and, at the

higher profits
time, lowers the

same

debt

burden; and most important
all, as far as bankers are con-

cerned, (4) that the impact
commercial
regarded
liabilities
of the

banks

are

dis-

and

expressed

terms

dollar.'

same

eeptance

purpose

that

these
this

fallacies,
is

paper

inflation is

ac-

the

(1)

menace

our

nation, including the banks
to analyze
briefly the source
and
the
impact of the various
kinds of inflation on
our
com(2)

mercial

banks,

suggest

what

meet

the

and

effort

Revival
In

been

well

fellow

Barkley,
made
as

Fear

recent

TT~4
New

to
In

words of
my late

Alben

wherein

involved.

beloved

will

Ken-

•

every

show

"wherefore"!

months,

less than
many lines. In other

restraint

and

excess

only is the rate high,
Government refuses
recognize the impact of price

inflation

serves

banks

Russia

may

secure

.to

productive
g0

prices, in

expansion.

policy exerts
the

must

inflationary
little

tion for

increase,

testimony before the Senate

Finance
these

Committee

words:

penditures

the products.

"Government

are

President

the

money

similar

than

year

the Federal cash

BERNARD

say

two

CHARLES

budget has been

by
Federal
restraint that it

STUART

inflation

the

CARL J.

not ' the

kind,

money

flow-

supply,

exceeded

money

and

Liability of

R. DEUPREE '

$193,818,151
176,875,665
29,701,146
16,623,978

397,598,219

7,417,732
1,950,000

custom

5,860,000

3,000,000■

......

ers on

letters

I '

18,403,940

/ " !

$851,248,831

...

LIABILITIES

cash

sup-

currency

GILBERT

Deposits: U. S. Government

$ 45,219,657

All other

President

The Gillette Company

667,018,045

Official checks outstanding

26,938,975

LONGS TREET HINT ON
Senior Vice-President

;

Cie, Incorporated

DEVEREUX C. JOSEPHS. :
Chairman
New York

11,854,752

Acceptances outstanding and letters of

Director

Morgan

$739,176,677

Accounts payable, reserve
for taxes, etc

N.D.JAY

„

Life Insurance Company

credit issued.

19,105,267

Capital—350,000 shaves
Surplus

35,000,000
:

;

Undivided profits.

THOMAS S. LAMONT
Vice-Chairman

30,000,000
.'

16,112,135

$851,248^31

R.C. LEFFINGWELL
United States .Government securities
carried at
the above statement are
pledged to

L. F. McCOLLUM
'

President

' > '

secure

Continental Oil Company

JOHN M.

MEYER; JR.

$53,836,697 in

qualify for fiduciary powers, to
required by law, and for other purposes.

m
.......

;

Member Federal Reserve
System
Deposit Insurance Corpora tion

Mem ber Federal

JUNIUS S. MORGAN

■

public monies

>•'

Senior Vice-President

ALFRED

banks...........

of credit and acceptances.

CHARLES D. DICKEY

in-

the money supply

deposits

Continued

Incorporated,
Corporation.'...'.......

Banking house

Company

SLOAN, JR,

*
Honorary Chairman
General Motors Corporation

■

JAMES L. THOMSON /
Finance Committee

4..,

MORGAN $

CIE. INCORPORATED
14, Place Yenddme, Paris, Franc$

...

Hartford Fire Insurance Company

GEORGJjf WHITNEY
HENRY S. WING ATE
President, The Liter national
Nickel

Company of Canada, Limited

;

" MORGAN GRENFELL

our

secur¬

has

borrow, and to spend. For ex¬
ample, in dvery year since 1950

not

Since the end of the
war, Federal

(demand

Chairman, Executive Committee

government deficits and
of

economic

contributes,

Chairman

to prices,

conventional

expansion

also

Stock of the Federal Reserve
Bank

and 15 Broad Street

em¬

greatly increased the willingness,
and the ability, of our
people to

Loans and bills purchased.

W.CRAGIN

RICHARD

Causes of Present Inflation

ing from

ity

increased

Investments in Morgan
Grenfell 8' Co.
Limited, Morgan <$' Cie.

CHEST ON

The Procter & Gamble
Company

rate, to

abnormal

what iS happening
Today's

inflation

ASSETS'
hand and due from

Chairman

Reserve

has

at its normal
an

The B. F. Goodrich

flationary expansion. So, we must
look f|irther for the reasons for

classic,

Our

Accrued interest, accounts
receivable, etc.....
:

JOHN L. COLLYER

ago;

supply itself has been

nothing of

S. CARTER

Cie. Incorporated

er5

supply, and

restricted

credit

Corporation

Chairman

in-

deflationary side for two
years; and, although velocity has
increased, the increase of , the

even grown

the

ically, and psychologically, to
inflationary trend.

Other bonds and
securities.1

fiscal

the

money

C. CABOT

President
State Street Investment

explana-

motivations.
This is? the
so-called "demand pull"
you have
heard so much about.
But, : the
threat of war. is
certainly not
greater

during

State and
municipal bonds and notes

PAUL

Senior Vice-President

material

only

recent years are other
important
factors which contribute econom¬

United States Government
securities

Trans World Airlines, Inc.

Morgan

■'

CARTER L. BURGESS

policy, fear of currency depreciacrease

cipline

Cash

not

policy of full

Statement of Condition September
30,1957

President

government
of

Our national,

Bechtel Corporation

panicky
buying arising out of fear—fear of

because

ex¬

par¬

program.

due

STEPHEN D. BECIITEL

run-up in prices is that
the result of a flareup
in demand
coming from

tion

inflationary,

INCORPORATED

prices"

short-run

June, in

stockpiling
here

infla¬

Washing¬

our failure to exer¬
cise any consequential fiscal dis¬

ticularly when the economy is at

ARTHUR M. ANDERSON

fear

last

equity.

substantial

ployment and

ary effect of heavy government
spending was frankly recognized
by Treasury Secretary Humphrey

in his

effect

the

of
on

involved, but, also,
to the methods and
timing of pur¬
chases, which often magnify their
price support impact.;'
;
' " f

;

and

NEW YORK

arp

war,

fairness

to the amounts

Which

pressure

di¬

demands

increases

pressure -from

The

This

recognized.

the

wage

President

manufacturers, at the very time
that dealers were being forced to
give deeper and deeper discounts

they

survive.

ton

extent de¬

used

for

another

tionary

short, even though the Fed¬
budget is balanced, today's
heavy corporate taxes are defi¬
nitely inflationary. The inflation¬

are

basis

present X Still

nothing

eral

H. P. DAVISON

if the

see

"administered

classic

the

neces¬

inflationary

method

supports

labor

Chairman

Committee reports, you can draw
several pretty sound conclusions
from the recent mark-ups on the
retail tags -an home laundry, television and many other major and
minor consumer -appliances by

The

contracts, and

rectly
all

corporate

prices, the

corporation

basic

capital to develop

the Con-

investigating to

move

Such

thereby, directly affects

J. P. MORGAN & CO.

are not the economic culprit. But
even
before
the
Congressional

their

HENRY C. ALEXANDER

capacity continues to
a
rapid rate.
Risingsthe face of extreme!/

nomic phenomenon that
so-called

funds

inflationary

the

DIRECTORS

tight money, in the face of idle
and growing capacity, and in the
face of sluggish, and even declining demand, is such a novel ecogress is

the

maintain

is far too

Likewise, our foreign aid, in one
fo™ «r another. is substantial. In
addition, many foreign nations
us

food and,

taking of the : "seed corn" by
heavy and unwise tax policies is a

,s alwa-vs the

they

the wages of some four million
workers with escalator provisions
in their wage

re¬

Corpora¬
tions, in consequence, must raise
prices, resort to the capital mar¬
ket, or borrow at the commercial

the

and, although at present they
that

depreciation

°1

dacrc?sl"g'. "?are
threat

the

of corporations.

pending

are enormous,

In fact, production, after declining somewhat, has remained level
f0 r several
months, but prices
have been going up!
Moreover,

an exPansion of the
.

was

em¬

from Wash¬
agricultural price
support program. This policy not
only imposes a burden on the tax¬
payer,
it increases the cost of

ington

actually
during the

Federal

disbursements by more than $12
billion and, thus, have not caused

SePl- 20' 1957.

the

than

output and

emanating

pressure

matly

Not

serious

all

£ash receiPts have

higher
war.

for

Another

pro¬

nearly

there

has

helpful in esti¬

industry,

State0 Bankers0 Association0 ply> Moreover,

York
York City'

the

Inflation

revival of the fear
of in11.

that

with

today

pressure on

on all fronts, our mill-

■

dangers

dearly

uckmn,

finally, (3) to

bankers/:an

doing this', in the
and

operating

lines of

Notwithstanding widespread
show

our

assets

can

their

and

capacity

distribution

—will

beneficial

fact

price advance,

any

money

duction

past; two

specls than

the

fact, the tax

tax

World leadership

review-of

inflationary

ta7 expenditures

capacity in so
words, the inflationary process is
Continuing
despite
determined

serious

flation

tight

economy

underestimate
the

regularity they
heights. But it

new

high.

corporations

Thursday, October 3, 1957

a
high level
ployment."

vel

are

cnta;ls Sr(eat responsibilities ,and

monotonous

have reached

their preoccu¬

pation

in 1955, and,

increase

ofr

High on any list of inflationary
pressures would be the changed

Hinted States.

say

quick

and

mafty'.arid

are

resources

operating position, to

our

mating probable trends and in
devising measures to counter their
impacts on your institution.
>

Consumer

will

causes

important

pressures

with

over-

expansion

index point

one

the

deep-seated,
the

prices have risen every year since
1943, with the minor exception of

contin-

uously

too.

pace,

ex¬

Clearly, credit

inflation

present

omists.

Inflation is endemic in credit
^^^systems, and that it easily be

and

their

their standard of
living.
As a result, our taxes

sary

Although

flation, particularly among econWholesale prices, after six
months of stability, resumed their
upward creep in July-and at anJ
J

story

Bankers

population

inflation is not to blame this time.

factors; describes popular fallacies about inflation; and
producing a non-conventipnal type of inflation.

that

supply went up at a rate
than 2% a year, which is
than the normal rate of ex¬

money
of less

panding economy.

reviews forces

Thus, despite the
our
history, the

greatest boom in

sary

overlook non-monetary

some

period, December 1948 to
December
1952,
went
up
only
$10.7 billion, or 7%, in the four
year
period, December 1952 to

increasing

Finds preoccupation with bank in¬

causes

pansion economists feel is neces¬
to meet the needs of our

to prepare

even

upward trend.

duced credit inflation
r

do^

they should

went

year

less

for further inflation,
though present signs indicate
a leveling off.
Professor Rodgers suggests this long-run pre¬
cautionary move on the supposition that prices may shortly
and what

which

12%, in the four

December 1956.

Professor of Banking, Graduate School of Business Administration
and in the School of Commerce,
Accounts, and Finance

Banking expert advises bankers

banks),

$17.4 billion,

...

CO. LIMITED

t', Great Winchester Street, London E. C.
t, England

page

Volume 186

Number 5678

(1435)

Chronicle

The Commercial and Financial

Interest exempt

Legal Investment, in

our
certain other Statest

tinder present laivs

from Federal Income Taxes

opinion, for Savings Banks and Trust Funds in New York
and /or Savings Banks in Massachusetts and Connecticut

and

New Issues

$20,600,000

2%% and 3%

Highway Bonds
Due: November 1, as

shown below

Dated: November 1, 1957

Principal and semi-annual interest
'

These

(May 1 and November 1) payable at the fiscal agency of the State of
National City Bank). Coupon bonds in the denomination of $1,000.
<

Oregon for the payment of

in the opinion of counsel will constitute direct
which the full faith and credit of the State are pledged.

1,000,000

23/4

1,000,000

1962

1,000,000

$1,500,000
1,500,000

100

1961

1,500,000

2.80

1,500,000

2.85

1963

1,600,000

2.90

1964

general obligations of the

Due

To Yield

$1,600,000

1970/67

3.15%

1,600,000

1971/67

3.20

1,600,000

1972/67

3.20

1,600,000

1973/67

3.25

3.10

1,600,000

1974/67

3.25

Price

2.95%

1966

Rate

1965

Amount

3.05

Due

100

1967

1968/67

1,000,000

To Yield
Rate

A mount

Price

2.70%

1960

23/4%

$1,000,000

(Accrued interest to be added)

To Yield
Due

Pate

Amount

MATURITIES AND PRICES

AMOUNTS, RATES,

bonds, to be issued for Highway purposes,

State of

(The First

Oregon in New York City

1969/67

after November 1, 1967 will be subject to prior redemption at par and
numerical order on any interest payment date on or after November 1, 1967.

bonds maturing

All

accrued interest in

$6,000,000

Veterans' Welfare Bonds

3lA% and 3'/2%

Due: October 1,
"

Principal and semi-annual interest
.

These bonds, to

(April 1 and October 1) payable at

the office of the State Treasurer,

denomination of $1,000.

be issued for Veterans'

of the State of Oregon

Salem, Oregon. Coupon bonds in the
<

Welfare purposes, in the opinion of counsel will constitute direct
full faith and credit of the State are pledged.

general obligations

for the payment of which the

AMOUNTS, RATES AND
(

Accrued interest to be

PRICES 1

added)
To Yield

To Yield
Rate

Amount

and accrued interest in

3V2%

102l/2 3.20% to first call date

numerical order on any interest payment date on or

by •

after October 1, 1967..

received by us and subject to approval of legality
Shuler & Say re, Portland, Oregon.

•

Approximately

Price

as and if issued and
Messrs. Winfree, McCulloch,

When,

■

Rate

$2,000,000

3.19% to first call date

Subject to prior redemption at par

Amount

Approximately

Price

31/4% ' IOOI/2

$4,000,000

Blyth & Co., Inc.
.;
The First National Bank
The Northern Trust Company
Chemical Corn Exchange Bank
Equitable Securities Corporation
R. W. Pressprich & Co.
.
Eastman Dillon, Union Securities & Co.
The Philadelphia National Bank Seattle-First National Bank F. S. Moseley & Co. DeanWitter & Co. Carl M. Loeb, Rhoades & Co.
The Marine Trust Company
J. C. Bradford & Co. F. S. Smithers & Co. W. H. Morton & Co. Commerce Trust Company Hirsch & Co. Trust Company of Georgia
\
Incorporated
Kansas City
Bacon, Whipple & Co.
Dick & Merle-Smith
Mercantile Safe Deposit and Trust Company
Braun, Bosworth & Co. Fitzpatrick, Sullivan & Co. Stern Brothers & Co.
The United States National Bank Baker, Watts & Co. Gregory & Sons Rand & Co. Brown Brothers Harriman & Co. R. D. White & Co. Robert Winthrop & Co. Courts & Co.

Bankers Trust Company
■

1971/67

Dated: October 1, 1957

The Chase Manhattan Bank

'?'

•

of Portland, Ore.

York

•

The First National City Bank

•

of New York

Harris Trust and Savings Bank
•

Kuhn, Loeb & Co.

of Western New

■

Baltimore

of Portland,

New York,

Incorporated

•

Ore.

N. Y., October 3,

1957.

Statements herein,

while not guaranteed, are based upon

information which we believe to be

reliable.

(1436)

The Commercial and Financial Chronicle

copy

Thursday, October 3, 1957

...

Equipment Company, Brill^ Manufacturing Co. Inc. and

llofmann Industries Inc.

Dealer-Broker Investment

Century
.

understood that the firms mentioned will
to send interested
parties the

pleased
following literature:

EVENTS

(also $2.00).

Cliamplin Oil—Report—Hicks & Price, 231 South La Salle
St.,
Chicago 4, 111. *
~
* ' "

Recommendations & Literature
It it

News Letter, 414
Cglif.^-$2.00. Also available is

analysis ol Crestmont Oil Company

COMING

Inc.—Analysisi-North's

Engineers

Mason Stret, San Francisco 2,

,;V : - y • \ *
York—Data—Oppenheimer,

Consolidated
Vanden

Also

Edison

Broeck

available

Telephone

Co.

Co.,

New

120 Broadway, New York

the

bulletin

same

Corporation,

Kroger

data

are

Corn

Company,

the

General

Firms Board of Governors meet¬

Manufacturers

ing at Mark Hopkins Hotel.

on High Voltage
Engineering
Company—Atomic Develop-*
Mutual Fund, Inc., Dept.
C, 1033—30th Street, N. W.,
Washington 7, D C

Foote

5%—List of 40 selected issues with good yield—
Co., 1 Wall Street, New York 5, N. Y.
Discussion of advantages in present market —
Arthur

Francis I

Bonds

—

Burnham

View

—

Monthly investment letter

—

Burnham

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

is current Foreign

and

Also avail¬

Letter.

Chemical & Pharmaceutical
&

Industry—Report—Smith, Barney

Co., 20 Broad Street, New York 5, N. Y.
Copper Industry—Study with particular reference to Anaconda
Company—E. F. Hutton & Company, 61
Broadway, New
York 6, N. Y.
■-

York 5, N. Y.

Japanese

Stock

Market—Monthy

—Nomura Securities Co.,
n. y.

survey of economic picture
Ltd., 61 Broadway, New York 6,

—

Current information

—

Yamaichi Securities

of the

(U. S. Farm

Automotive Market)

General

"Monthly

Investment Letter" containing an appraisal
and an analysis of the
Drug Stocks,
on Lily Tulip Corp.
\
:
Co.

—

Memorandum

Oct. 12,

;

Finance

Corp.

—

Memorandum

Lee

—

ciation

the Homestead.

Dec. 1-6, 1957

Higgmson

S. Kresge Co.
Ford

Memorandum

—

Lockheed Aircraft Corporation

120

—

Analysis

—

Independent

School

—

Jan. 17, 1958

(Baltimore, Md.)
Baltimore Security Traders As¬
sociation 23rd
annual
mid¬

Stanley Heller &

Laird, Bissell & Meeds,

Broadway, New York 5, N. Y.

Midland

wood Beach Hotel.

Analysis
Co., 30 Pine Street, New York 5, N. Y.

Mergenthaler Linotype

Investment Bankers Association
Annual Convention at
Holly¬

Watling, Lerchen & Co.,

—

Building, Detroit 26, Mich.

winter

unlimited

house Bonds—Circular—
Rauscher, Pierce &

Tax

at the
on

page

4. N. Y.

Philadelphia Bank Stocks—Comparison of 12
largest Philadel¬
phia

banks

Broad

Public

—

Stroud

Company, Incorporated, 123

South

Street, Philadelphia 9, Pa.

Utility

Saxton &

Common

Manoir

NSTA

Co.—Memorandum
Street,,New York 5, N. Y.

nell
same

Machine

Foundry

■Mt

—

ivtv

Company—Report—Thomson

Street, New York 5, N. Y.

Kidder

Co.,

Wall

per

year.

Co., 52

—

Also

the

Lamson

October
&

issue

Sessions

are

N. Y.—

articles

American

Photo-

Currently Active—

are

all

most

Harold
appre¬

ment

Alfred

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

"'i National Advertising

Nominating Committee

Northern Ontario Units
Quebec Natural Gas & Units

With

—

WILTON, Me.—Lester B. Coull
is

now

TROSTER, SINGER

FLORIDA

SECURITIES

Banfc^Itisurance Companies»

Delhi-Taylor Oil

& CO.

Trinity Place, New

York 6, N. Y.

Golden

TRADING DEPARTMENT
TELETYPE MM51

Request
'

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

—

►

ALFRED D. LAURENCE

■

Exchange Plaqe, Jersey Cijy, N. J.
Telephone HEnderson 2-1000

Open-end

Industrials

Western Securities" Corp.
One

DEMPSEY-TEGELER & CO.

Invest in

Big Piney Oil & Gas
on

Members: New York
Security Dealers Association

TRADING MARKETS

Northwest Production

Special Reports

associated with Coburn

Middlebrook, Inc.

Three States Natural Gas

Sold

Coburn, Middlebrook

(Special to The Financial Chronicle)

Exchange, in the
department, it

bond

(alternate), Strauss, Ginberg & Co.
Chairman, Carl M. Loeb, Rhoades & Co.

be¬

invest¬

announced.

are:

Leslie Barbier, G. A. Saxton &
Co., Inc.
John Butler, First Boston
Corporation
Vincent Gowen,
Goldman, Sachs & Co.
Charles Kaiser,
Grady Berwald & Co.
Abraham Strauss

DEPENDABLE MARKETS

the

5, N. Y.

SECURITY TRADERS ASS'N OF NEW
YORK, INC.
«
The Nominating Committee
of The Security Traders Associa¬
tion of New York will hold an
open meeting at the Antlers Res¬
taurant, 67 Wall Street, at 4:30 p.m. on October
7, 1957, to receive
suggestions from the members for the 1958 slate.
Members of the

with

and

have

City, members of the

institutional

c/o Fitzgerald &
Company
40 Wall
Street, New York

III

banking firm of Lee Higgin¬
York

New York Stock

Committee

Higginson

Humiston, Jr.

C." Whitman

ALFRED F. TISCH, Chairman

Corporation, 20 Broad Street,

New

Tisch

associated

come

;

Bought

Vreeland has

partnership
,

Raymond

With Lee

Year-Book

Supplement.

son

Edward J. Kelly,

that M. A.

admitted

their firm.

T1IE

Descriptive article in current issue of
"American Investor"—"American
Investor," American Stock
Exchange Building, 86 Trinity
Place, New York
$1.00

nounced

been

K. I. M.

Street, New York 5, N. Y.

Helicopter Industry,

Sanderson & Porter, 72 Wall
Street, New York City, have an¬

Gardiner, of

ciative^ this fine support.

—

Company

Annual

Convention

McKinnon, 11

Corporation—Analysis—Van Alstyne, Noel

Carnation

happy to report

half page advertisement in

Analysis — Bache & Co., 36 Wall
Street,
New York
5, N. Y. Also available is a, bulletin on
General
Foods and Vick Chemical.

Burndy

are

City, has contracted for

Robert M. Gardiner

Bucyrus-Erie Co.

M. A. Vreeland Partner
In Sanderson & Porter

Reynolds & Co., New York

Co., 120 Broadway, New York 5, N. Y. Also in
the
bulletin are analyses of Federal
Paper Board Company,
Foods

(Colorado

National Security Traders Asso¬
ciation Annual Convention
at

NATIONAL SECURITY TRADERS
ASSOCIATION

apd Motorola.
Wall

1958

the Broadmoor.

Company—Analysis—McDon¬

Beatrice

Can

American

•

29-Nov.

Springs, Colo.)

Notes

our

American
Wall

Richelieu, Murray Bay,

Quebec.

Tax-Exempt Bond Market— A projection for the fourth
quar¬
ter—Park, Ryan, Inc., 70 Pine Street, New York
5, N. Y.
%

Shamrock Hotels

of Canada annual convention
at

that Robert M.

Stocks—Comparative figures—G.
Co., Inc., 52 Wall Street, New York 5, N. Y.

Southern

June 9-12, 1958 (Canada)
Investment Dealers' Association

Oct.

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

the

meeting

Continued

Market Review—With a discussion of Stocks
for Income with
Defensive Strength—Harris,
Upham & Co., 120 Broadway,
New York 5, N. Y.

Jones

April 23-25, 1958 (Houston,
Tex.)
Texas Group Investment Bank¬
ers Association annual

School-

Co., Inc., Milam

Building, San Antonio 5, Texas.

Exports and

Over-the-Counter Index—Folder
showing

dinner

Hotel.

District

(Hollywood Beach,

Fla.)

Corp., 231 South La Salle Street, Chicago 3, 111.
S.

(Hot Springs, V*.)

National Security Traders Asso¬
Annual Convention at

Corporation—Report—Loewi & Co.
Incorporated, 225 East Mason Street, Milwaukee 2, Wis... :.,

Household

(New York City)

Nov. 3-6, 1957

Turner,

Iligh Voltage Engineering
>

1957

Security Traders Association of
New York annual dinner
dance
at the Commodore
Hotel.

Straus. Blosser &

—

(Les Angeles,

Association of Stock
Exchange
Firms Board of Governors meet¬
ing at Beverly Hills Hotel.

market situation

Merchandise

10-11, 1957

Calif.)

memorandum

— Quarterly
publication — Chase Man¬
Bank, 18 Pine Stret, New York 51, N. Y.

hattan

Omaha Club).
Oct.

Also available

McDowell, 3.9 South La Salle Street, Chicago 3, III.
Griggs Equipment Inc.—r-Cireular—Eppler, Guerin &
Inc., Fidelity Union Life Building, Dallas 1, Texas.

Latin American Business
Highlights

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

Corporation—Analysis—Hayden, Stone

Co.,. 25 Broad Street, New York 4, N. Y.

and

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

New York.

field

Co.—Analysis—du Pont, Homsey & Company,
Milk Street, Boston 9, Mass.
;

is the

v. .;

Japanese Stocks

International

National

General Aniline & Film

Growth

Stocks—Pamphlet discussion advantages, including tax
advantages—B. L. Simmons Company, 120 Broadway, New

(Omaha, Neb.)
Investment Banker*
Association annual frolic and
Nebraska

Fruehauf Trailer

du Pont &

Wiesenberger & Company, 61 Broadway, New York 6, N. Y.
Boron—Report based on high energy fuels—Morris Cohon &
Co., 42 Broadway, New York 4, N. Y.

W., Washington

•

Better Than

Oct. 10, 1957

Auchincloss,,

—

Mortgage Association—Analysis—New York
Hanseatic Corporation, 120 Broadway, New York
5, N. Y.

Miaeral

Memorandum

—

Telephone & Telegraph Co.

Federal

of the Fund's shares. Comments

Company and

Refining Co.

Parker & Redpath,.729 Fifteenth Street, N.
5, D. C. Also available is a memorandum

principle contractors for the ships and reactor com¬
ponents; also mentions the large Swiss and Dutch holdings

ment

Products

Field

Oct. 7-8,1957 (San
Francisco, Cat.)
Association of Stock Exchange

5, N. Y.

Trust Co. of New York and Sterling I>rug
Incorporated.

Atomic Letter (No. tt)—Features the Nuclear
Navy; an artist's
conception showing ell 21 of the atomic vessels now in
operation, under construction or planned; a table showing

Investment

L- & COMPANY

INVESTMENT SECURITIES

'§

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

Phone: Miami, FRanklin 3-7716

(1437)
The Commercial

Number 5678

Volume 136

and Financial Chronicle

William Bosse Joins

Cruttenden, Podesta Go.
CHICAGO, 111.—William K.
has joined the investment
firm
of Cruttenden, Podesta &

Bosse
:
'

Salle Street,

South La

209

Co.,

■ill

members

the New York

and Midwest

Stock

Ex-

changes,

senior
,

analyst

the under-

writing\ de¬

partment,
=

-Robert

New Issue

Podesta, part;

ner, has
nounced.

Mr.

an;

has

years' of
Vv imam

uvooc

20
ex¬

perience

State of New

invest¬

the

$24,000,000

■;

Bosse,

:'who

formerly with
xGlore, Forgan & Co. At one time
he was Manager of the research
department of Loewi & Co., Mil! waukee,
and prior to that was
associated with Mason, Moran &
ment

field,

was

2.96% Serial Bonds

•

Company.
Investment

■

To bo dated

He is a member of the
Analysts Society of

October 15, 1957; to moture ay

shown below. Principal ond semi-annual interest (April 15 and October 15) payable in New York City.
principol and interest in denominations of $1,000, $5,000, $10,000 and
Registered Bonds may be exchanged for coupon Bonds at the expense of the holder. , . •

$1,000, exchongeoble for Bonds registered as to

Coupon Bonds in denomination
$50,000.
,

Chicago.

with honors from
of Nebraska
in*
a post-gradscholarship to continue ear¬
work on Business Cycle re¬

He graduated

;

the

In the

University

1936 and

•

uate

lier

search.

General of the State of New York, these Bonds will constitute valid and binding general obligations
pledged for the payment of the principal of and interest on the

opinion of the Attorney

and the full faith and credit of the State will be

of New York,

granted

was

•

fr.

■

Interest Exempt from

Consolidation

Williston

J.-R.

has

exchanges,

commodity

are

announced.

security for State deposits, to the
policyholders and to the Superintendent

acceptable to the State of New York as

Superintendent of Insurance to secure

of Banks in trust for

securities and

leading

other

and

These Bonds

members
Exchange

Co.,

of the New York Stock
•

for

Jf&rk and certain other States and
Savings Banks in Massachusetts and Connecticut

and Trust Funds in New

member

the

Legal Investments for Savings Banks

opinion, these Bonds meet the requirements as

our

of Osborne & Thurlow with

: firm

under >

Federal and New York State Income Taxes

Existing Statutes and Decisions

Osborne & Thurlow

Bonds.^

•

WHIisten Absorbs

;

of the State

Banks and Trust Companies.

been

the

time

same'

was/an¬

nounced that H. Thomas

Bradbury K. Thurlow, Norman J.
Marsh and Charles H. Cunning-'

;
•

;

Due

Yield

Due

Yields

Prices

formerly partners in Osborne & Thurlow, have been ad-

1958-1972, inclusive

$1,600,000 each October 15,

Due

ham,

YIELDS OR PRICE

AMOUNTS, MATURITIES AND

Osborne,

Due

Yield

Price

2.70%

1968*

2.85%
2.85

mitted

general

1958

2.25%

1963

Williston

1959

2.40

1964

2.75

1969*

1960

2.50

1965*

2.80

1970*

1 00 (price!

1961

2.60

1966*

2.80

1971*

100

1962

2.65

1967*

2.85

partnership in
organization,
while Ralph Hinchman Cutler has
become a limited partner. • jj ^

the
,

■

Dancy, Duval & Co. :
Formed in N. Y. City
of

Formation
4

(Accrued interest to be added)
'Bonds due

lliiilllll

investment

the

in a general securities
business
and
business develop¬
ment
activities,
has
been
announced. Offices of the new firm
to

•

engage

are

located at 111

York

•

City.-

•

1965-72 have been sold.

Duval & Co., Inc.,

firm of Dancy,

(price)

1 00 (pricel

.1972*

The

above Bonds are

and if

sale be/ore or after appearance
the approval of legality by the

offered, sub/eet to prior

issued and received

by us and sub/eel to

of this advertisement, for delivery when, as
Attorney General of the State of New York.

Broadway, New

The First

principals are Marshall F.
Dancy, who has headed his own'
firm of Dancy & Co. for several

National City Bank of New
'

Bankers Trust Company

York

Lehman Brothers

J. P. Morgan & Co.
Incorporated

•

Guaranty Trust Company
of New York

The

years
former'

•

Gordon

and

Duval,

Vice-President
of
the
Trust Company. Both

Harriman

The First Boston

Ripley & Co.

Glore, Forgan & Co.

have

in the investment

been

than 25 years.

„

se-

York for

curities business in New
.

Boettcher & Go.
E. Warren
partner of
Boettcher & Company of Denver,
and William H. Hutchinson, PresDENVER,

•

~
r,
-

Colo.

•

ident of Hutchinson
•

—

managing

Willard,

and Company,

announced the.
merger of the two firms effective
Oct. 1, under the Boettcher nam<?.
The merger will give Boettcher
& Company it's fourth Colorado
office. The company now has of¬
fices in Denver, Colorado Springs,
Grand Junction and Pueblo in ad¬
dition to Chicago and New York
Pueblo,

have

Boettcher

ber

change.

Company is a
York Stock
associate mem¬

of the New

Exchange and

the

Dillon ' Union Securities &

American

Stock Ex¬

Co.

The of Portland, OregonBank
First National

Continental Illinois National Bank
Chicago

Drexel & Co.

■

and Trust

Company of

Wood, Struthers & Co.

Clark, Dodge & Co.
Coffin & Burr
Dominick & Dominick
Ira Haupt & Co.
Hayden, Stone & Co.
Hirsch & Co. Laidlaw & Co. lee Higginson Corporation
.......
...
.
. .
E. Pollock I Co., Inc.
Roosevelt & Cross Shearson, Hammill &Co.
F. S. Smithers & Co. Robert Winthrop & Co. Dean Witter & Co.
Bosworth & Co.
Dick & Merle-Smith
J. C. Bradford & Co.
Eldredge & Co.
R. H. Moulton & Company - National State Bank
Incorporated
Newark
»
Stroud & Company
Tucker, Anthony & R. L. Day
G. H. Walker & Co.
A. M. Kidder & Co., Inc.
R. 'Dickson ^Company
corparefed
Bramhall, Falion & Co., Inc.
Trust Company of Georgia
Andrews & Wells, Inc.
Bacon, Whipple & Co.
J. Barth & Co.
Bankina & Trust Co.
City National Bank & Trust Co.
E. F. Hutton & Company
Mackey, Dunn & Co. k Mercantile-Safe Deposit
Incorporated
and Trust Company

Paine '

Bacon, Stevenson & Co.

Webber ' Jackson & Curtis

" ^

■

Wm.

'•

Alex. Brown & Sons

The Boatmen's National Bank
of Saint Louis

* •

Incorporated

Braun

incorporated

Incorporated

Branch

„

Korsas

Newburger, Loeb & Co.
F. W.

Craigie & Co.

October 2, 1957

branch offices.

member

Eastman

Incorporated

Absorbs Hulchinson Go.

Phelps, Fenn & Co.
Goldman, Sachs & Co.

Merrill Lynch, Pierce, Fenner & Beane

Lazard Freres & Co.
t

Guaranty

Halsey, Stuart & Co. Inc.

Smith, Barney & Co.

Corporation

Incorporated

City. Mo.

The Ohio Company

Rand & Co.

Stern Brothers & Co.

The Illinois Company
Incorporated
^

•

Schaffer, Necker & Co.'
Van Alstyne, Noel & Co.

Tripp & Co., Inc.
Field, Richards & Co.
R. D. White & Company Tilney and Company
(

The Commercial and Financial

(1438)

building

activity

and

the

then made

chain

Chronicle!,.. Thursday, October 3, 1957

high of around' of $4,200,000 in combined* Main¬
mid-1956; presently, selling' tenance
expenditures, vs a drop
other building products,
indices-* around 61-62, it is approximately" in Pre-Tax Net Income" of
$5,tion in the paper industry and the midway between the 1953 low
and 900,000!
'
1
"
'
:
"
accompanying effects on pulp and the 1955 high;
Missouri Pacific, whose man¬
chemical shipments, lower steel
Southern
Pacific,
subject
.to agement has

The Present Rail Outlook

reaction

lumber shipments and

new

•

By W. WENDELL REUSS*
Manager, Railroad Securities Dept., W. E. Hutton & Co.

output, and

Specialist in railroad securities explains why he believes rail
equities "are extremely attractive buys for both substantial

eral

"not-so-good" Gen¬

Motors

auto

capital gain and excellent interim yield.
"hidden

of-living" rise.

earnings strength"

Sum

willingness not to defer controllable maintenance cost with
declining traffic in order to avoid higher cost of post Nov. 1

Mr. Reuss opines end of the year will show higher
income, further dividend rises or extras, and improving

sketchily,
the
railroad War II years 1942-1945; also in
averages,
at
this
writing,
are the immediately succeeding Post¬
down
roughly 25%
from their war period of 1946 through 1949
1956 highs; of late—and after the when reconversion to
peacetime
rail
equityproduction exerted major influ¬
Very

market

k i

bottom,"

the

and

car¬

rate

relief

week

War

freight
relief—as

offset

to
W. Wendell Reuss

costs; beyond this, there
has
been
much
"telephone in¬
quiry" and "wire-house" concern
the effects of "an

future

and

which,

lack

when

one

that

large

the

strike,

em¬

lj/50-1951

and its

future

old

tax

the

second

Diesel

same year

Rock

Western

roads for

and

mid-1956

problems

in this year's first
half off by
about 5%, yet because of floods
in
the Southwestern

high

week

48-

have
on

for¬
many

earnings in 1951
of the Kansas City floods which
especially hurt the Santa Fe and
Rock

Atlantic

Histories

Coast

roughly 11
1952

these

1953-1954,
reacted

of '63

1956

new

and

the

Island.

year

late

rail

the

price

fail

not

mew?

levels/*rates,

and

wage

equities—that

of 21?

material*

Memory is
&

very

rose

could

quantity

under

10. in

had

for

16-18

then
1951, sank
1951-early
high of around
back

such

the

and

level of 18 and then

improving trend
closes;
(2)

With

the

rates,

traffic1 improve-'

earnings

will

aided,

and
thus
present
better
contrasts with the closing months

of'

1956; further individual com¬
modity »rate rises are not an im¬

probability,
November

as"
1

etc.; V" C

offset

the

automatic wage rise

*.•

v•

(3) Some amount'of Mail Reve¬
"back

nue

pay" will be included

in the income accounts

during the

(4)

issue

not

come"-

showing—due

that' many

unappre¬

lower

carriers

period

exceeding $20,700,000)

not

deny

have

made

come"

wages

were

the

latter

period

prior to the automatic

Nov. 1, .1957

1957 wage

called

costly.

Equipment Trust Certificates
.

To
To be guaranteed

mature

$300,000 annually June 1, 1958

Miles
to

1972, inclusive

unconditionally

as to

payment of par value and dividends by endorsement

Chesapeake and Ohio Railway Company

yield 4.25%

half,

leader
>

4.40%, according to maturity

Issuance and sale

of these Certificates are subject to authorization by the Interstate Commerce
Commission.
The Offering Circular
may be obtained in any State in which this announcement is circulated
from only
such of the
undersigned and other dealers as may lawfully offer these securities in such State.

HALSEY, STUART & CO.

(Central, contrasted with
decrease in Revenue Tonin \ this
year's
first

Pre-Tax

INC.

BAXTER &. COMPANY

R. W. PRESSPRICH L
CO.

FREEMAN & COMPANY

the

September 27, 1957

SHEARSON, HAM MILL &CO.

and

—

railroad

field

—

000
of

larger
1956

Hudson

than

the

first

half

and

Equipment Mainte¬
$3,100,000
higher.
Thus,
$3,600,000
of
higher
combined
Maintenance

definitely con¬
trollable' expense,
especially in
periods of reduced traffic vol¬
ume—and

—

item that

was

NOT

during the first half of

1957's traffic recession—accounted
for

nearly

half

the

drop

Pre-Tax Net!

earnings'

■;

the

other

and

Nashville,

sample of

road,

July

contrast

(in

•')

"(2) While Delaware & Hudson

penses

revenues

were

approxi¬

July, 1956, ex¬
considerably higher

same as

were

its

has

larger

no-wise

maintenance

budget

and its capital improve¬
budget this year, the pur¬
being to do as much as pos¬

ment
pose

before

wages

Nov. 1.

are
.

again in¬

Offers Predictions

(5) .1
will

believe

disclose

that

many. roads

full-year

1957

Income HIGHER than for
with some roads even

the

well-run
face

an¬

rail¬
ap¬

proximate 2% drop in freight traf¬
fic volume, Roadway Maintenance
was up $1,400,000 and
Enuipment
Maintenance up $2,800,000—a rise

Net

1956

—

recording

brand-new Post-War Peak; /

addition,

confident

that many roads will close consid¬

erably the gap of decline in full1957 Net Income from

year

(7)

I believe that there

1956;
still

are

further dividend rises to

some

cur, or year-end

nounced;

extras to

oc¬
an¬

•

(8) Relative to that oft-occur¬
ring, annoying and overstressed
factor

effects
you

fast-amortization

tax-

railroad earnings, I read
wire which I dispatched

over

Railroad

nance

Louisville

McMASTER HUTCHINSON &.CO.

$7,600,000 drop

Income

"budgetary control"
chose to
keep Roadway Maintenance $500,-

REDUCED

DICK & MERLE-SMITH

Net

J; V

Strength

when it recorded

in
The

Priced

5.6%

release/covering

part):

so-

Maintenance"

connection/I quote from

the Delaware

Illinois

(Philadelphia Plan)

traffic

been that much
■

In this

creased

4%% Serial

rise, the cost of the

"Deferred^

would have

sible

rise; to wit:

Hidden

maintenance

"pickup or recovery"—at which
time, with the automatic Nov. 1,

mately the

present

they had de¬

defer

because

and

better "Net In¬

curtailed

levels

•

excellent

are

until

even

while-

cided

chosen

Chesapeake and Ohio Railway
Second
Equipment Trust of 1957

;

material

much

contrasts

this

to maintain
unchanged or
increase their Roadway and
Equipment Maintenance programs,

this!

"hid-

factor, and I

illustrations

Railroad

have

increased
are

citing

of
.

proof that the managements could

fact

the

during
traffic

pre¬

However, the plain fact is. that

1957-1956

much

ciated strength to earnings—other
than
just the cursory "Net In¬

$4,500,000
an

There

Rev¬

will not permit my

course,

press

last 4 months of this year;

Income!

and wage costs

1957"

recently-effective,

Quincy

recession

these

this

ment •* and

higher

the year

these showings
earnings strength."

den

rail

i (1) Business conditions and rail
traffic specifically will show an

1954

Net

Time

common '

equity market action, I believe:

ran

of
•

Burlington

drop in

tax

present

Net'Income

roadway and equipment mainten¬
EACH by
$900,000,- a $1,800,-

with

the first half

vs.

Pre-tax

$10,700,000!

Improving Outlook
contrast

attitude

total

Mainten¬

000 combined rise, or
exactly onehalf of the
$3,600,000

analysts generally today!

expenditures

drop

expenses

ance

1949,

late

1952; made a new
30 in early
1953/ sank
the 1951-1952

;

''Don't buy rails" is the byword
of

many

to around 23-24 in

back

v,,

increased

raise

by ^$3,-

Ton-Miles in this year's first
half,
yet
chose " to
INCREASE

■

disclosed

probable 1957 earnings and
3rields,.of 7-8%...

short, but Balti¬

to
.

enue

position
of' rail
is,
six
to
seven

Ohio

tremendous

chose

yet

expenditures

Chicago,

times

"storm-cellar"

6%,

$4,700,000
ance

costs,-competition and. a host of
other, imponderables has brought
about the present atmosphere, and

1952-1953, then reacting to around
17-18 in late 1953, then rising, to
32-33
in
1956, and now restingslightly above the 1952-1953 "top"

by $800,000!I '
experienced
a

500,000 and Equipment
by $1,200,000—making, a

now, I firmly believe we
in another one ol those periods

besetting difficulties, where the
clouds;of uncertainty about traffic

How about Santa Fe rising from

off

was

"Pennsy"'

nearly

of.

around 8-9 in 1949 to around 21 in

after which Pre-tax

—

Roadway

ground.

Right

•

are

railroad

(Third installment of

The

forward

move

high

$700,000

first-half drop in
freight traffic of

temporary restraining

•

and

by $200,000 and Equipment
Maintenance by $500,000—a total

Net Income

sur¬

mount their

38-40?
-

market

did

influences

is1 resting

"top"

the

equities

further into

postwar peak

now

1952-1953

where

case

subsequent
point
in

to another

rose

to 58 in early 1955,
late 1955, then

rose

in-'

are

Yet, note that in the 10Postwar Period, rare is the

from

rose

reactionary

problems

■

soluble.

Line

1949

up to 52-53 in 1955, dropped
Then, let's throw in the 1953- back to 41-42 in early 1956,
agajn
Inventory-Correct, iori-Indus- rallied to a "double-top" of 52-53
industry, in a "Pessimistic Report
from Wall Street" as "seeing the try-Recession, continued diversion in late 1956, again fell back to a
of
rail
freight ' to
trucks
and
"double-bottom"
41-42
Railroad Outlook bleak."
low ' in'
barge lines, the huge headache of early 1957, then made another
the "continuing and ever mount¬ new
Past Disappointments
high of around 58 this year!
ing passenger deficit," the 1955 Presently,
the stock
is
selling
r Many
of we rail analysts ex¬ L & N-N
C & St. L
around the 50 level.
strike, the
/'
perienced - numerous disappoint¬
1956
14-week Birmingham area
Kansas City Southern
was
ments and discouraging interrup¬
steel
strike
and
the
following worth only $20 a share during the,
tions to railroad security market
6-week July-August steel
industry greater part of 1949 and, subject
trends during the period of World
strike.
to occasional
setbacks, marched im
And now in 1957 bear in mind a literal
♦An address by
straight line to around
Mr., Reuss before the
the traffic effects of the conse¬ 84 in
N. Y. Society of Security
Analysts, Sept.
early 1955, reacted to around
6, 1957.
quences
of
"tight money"
on 71-72 in late 1955 and early 1956,

for

difficulties

present-day

then from

and

rough

months

roads' traffic and

was

compare

40-hour

reported in last week's magazine-

spokesman

"know-how"

Body
Blows," shows Revenue Ton-Miles

of ' 50;
presently
selling around the 38-39 level.

pres¬

outstand¬

10-Post-War

Years
Period of 1947-1956 in counteract¬
ing what I
term
"Four

cur¬

mid-1949 level of around 5 to

you

understanding

Great

switchmen to

Maybe some of us
gotten the influences

unques¬

following,

for

multiple-unit

against

operate a
hours pay.

increased

Northern

beyond
respected fel¬

with

Central

Great

cago

bene¬

Case

around

Island,
Western Pacific. Rio Grande, Chi¬

effect:"

our

low-members,
tioned

THAT

takes

the

then, the Korean

locomotives, also in the

accounting pro¬
seige of
overstressing of the

the

'bite'

fireman

another

mal-effects

reserves

tax

and

-r-

York

impending strikes

hack "fast amortization tax

fits

Pacific

non-operating

Period

New

ICC

cedures"—with

repetitious

forgetting

forget the effects of the
1950 strikes against the Santa
Fe,
Southern
Railway, Pennsy, and

and

change

not

Don't

material

over

for

aftermath.

increased
wage

—

Missouri

ployees

re¬

wage

also the institution of the 40-hour

inade¬

rate

output,

steel and coal strikes of 1949,

the

cent

the

and

the

region, indicat¬
I
could give you many other
facing
rail
management;
ing a break of the long-standing
thus, first indecision in rail stock; case histories of like price-gains drought, raised
Roadway Mainteand
after
prices in early August, 1957, and during
temporary* nance expenditures
by $400,000
"inclement weather" and
then, in late August and early periods of
Equipment/Maintenance by
September a universal retreat in for the members of the railroad
$500,000, or $900,000 of higher
industry.
equity prices.
/•'. ' ; / / combined Maintenance
Expendi¬
Isn't
it
refreshing to recount tures—with

material^osts and inadequate

45-day

industrial

upon

publicity
concerning
quacy

1955 high of around
62-63;
rently priced at around 41;

showing

intervening splits):

press has

ried plenty

during

time-lag between increased

true

ing

and freight traffic,
together with the deadly influence
on
earnings of the considerable

employment

some

semblance

SOME

from

rose

mid-1949

Southern Railway, jumped from
these

in-

Pre-Tax Net income
of the past and
off by $3,000,000!
them with today's un¬
In view of these besetting per¬
The Delaware & Hudson
expe¬
certainties?
Too
often
we
arc*
rienced a Revenue Ton-Mile
plexities, upsets and general be¬
de¬
wilderment over the period of the prone to quickly forget v/hat ap¬ crease of
5% in this year's first
last eight years, isn't it a wonder, peared in the past to be momen¬ half,
yet raised Roadway Maintetous problems, and then feel that
that
(all
prices
nance
adjusted
for

ences

pre¬

had

shown

corrections,
16-17

ently

business conditions and rail traffic.

viously

all

really have

rise.

wage
net

around

another late-1957 automatic wage
rise and provable escalator "cost-

Notes rails possess
exemplified by management's

given

periodic

PLUS

year,

our

"This

railroad

System

matter

Sept. 4:
revision

accounting to reflect tax

effects of fast amortization has al¬

ready

been

before

twice before, and the
.

Continued

the

I.C.C,

Commission,
on

page

(1439)

Financial Chronicle

The Commercial and

Number 5678

Volume 166

phasizes the essential character of
stability.
It is a good

financial

Development of Sound Economies
In the Nations of the World
By HON. ROBERT

and proper
o£
of

our

economies

thing that the policies

resources

keyed

are

the progress which members make
in arriving at economic and fi¬
nancial
stability, both in their

B. ANDERSON*

of the Treasury

.United States Secretary

Nations

are

look

can

continuing concern
of inflationary

is the effect

economies.

our

upon

pressures

Continued

page

offer .to sell or a solicitation of an offer to buy these
.offering is made only by the Prospectus.

securities.

,000,000

Southwestern Bell

Telephone Company

Year 4M% Debentures

Thirty-Five

business experience panded in industry, agriculture.
:.s
has been' in. and mining; Postwar gains:in=pro-v

of my

Much

the

approach

Dated October

Due October

1, 1957

1, 1992'

duction and trade have not Only.
permitted the servicing Of' existmy assoing foreign' loans, but have enciation with abled countries in need of devel-i,
the
Depart- opment to expand their external

the, internpt ion air

field

and

ment'of Deof the

fense

ga ve

vivid

aware-

ness

the

past ten years.
r

ber

which we
Bank

World

its
steady and continuing efforts to
help develop projects and to pro¬

congratulated

lie

its
back

vide useful technical advice to

When

members.

look

the Bank's record,

over

interesting

it is most

realize

the

that

ing members in projects to add
J to their power generating capacity
:
throughout the world more elec¬
tricity than was available in the
of

•

development work, and

difficult

A. C.

America at the
its devel-

Latin

time that the Bank began

opment financing. " Yet loans

INCORPORATED

policies, railway and / port
administration, banking legislation
and other subjects. The Economic

cial

Development Institute is also proceeding

i t h

gathering

L. F. ROTHSCHILD

all

can

Fund

effectively- demonstrated

the

operations of the Bank
continue to expand,, its continu¬
the

in raising capital on
the capital markets of the world
is gratifying.
In the last year about half of the
funds raised, by the Bank through
new borrowings was provided by
investors outside
of the United
States.
In a very real sense the
Bank
is becoming
more
inter¬
ing

success

national,

saving
is

most

draws

upon

of many countries.
desirable.

the

This

Also during the year important
releases of capital have been made
.

the Western HemEast, Africa, and
Europe. Although about $600 million of the capital originally subscribed by members have not yet
been
made
available for Bank
lending, my Government is glad
to see that the Bank has crossed
the billion dollar mark in recording. subscriptions ofcapital which
;are either--partly or fully available

dbring''
BLAIR

INCORPORATED

BAKER, WEEKS & CO.

BACHE & CO.

BURNS BROS. & DENTON, INC.

WILLIAM BLAIR &, COMPANY

& CO.

INCORPORATED

PHELPS, FENN & CO.

WEEDEN &, CO.

TUCKER, ANTHONY & R. L. DAY

has

& COMPANY

INCORPORATED

SHEARSON, HAMMILL & CO.
,

R. S. DICKSON

REYNOLDS &, CO.

for* the past year its usefulness as, a
only revolving source ; of short-term

total.

SCHOELLKOPF, HUTTON & POMEROY, INC.

SHIELDS &. COMPANY

-J;

with which the In¬
Monetary

ternational

pride

take

WERTHEIM &, CO.

FRANCIS I. duPONT & CO.

DICK & MERLE-SMITH

& CO.

&, CO.

HALLGARTEN

mentum.

effectiveness

•

mo¬

Approves Fund's Vigorousness

HUTZLER

BROS. &,

SALOMON

assistance to smooth out temporary disturbances in the world paydevelopment.- Transportation has ™ents situation. During this mostreceived nearly as much, and in- active fiscal year of its existence,
dustry and agriculture have been the Fund acted decisively and exaccorded ; loans
which together pended or committed a very large;
also
represent one-third of the amount of its resources. We can As

LADENBURG, THALMANN & CO.

BEAR, STEARNS & CO.,

comprise
about one-third of the $2% billion that the Bank has loaned for
electric V. power

•

SECURITIES CORPORATION

AMERICAN

ALLYN AND COMPANY

INC.

HALSEY, STUART & CO.

converting

stage

ideas into bankable-and
well-engineered projects. . It has
also continued to recruit and train
advisers on economic and finan-?
general

Bank are now help¬

loans of the

whole

pects
the

During the

the

reviewing,

Bank.*

Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State, ,;

given increasing help through
its advisers on the technical as-'

concern

year
are

The

has

us.

Robert IS. Anaerson

providing to the mem-,
nations is a most important

aspect of its activities/ The

problems
all of

assistance which

technical

The

it has been

great range of
which

Price 100.854% and accrued interest

borrowings very markedly inUhe

States

United

•

NEW YORK HANSEATIC CORPORATION

IRA

HAUPT & CO.

THE

ROBINSON-HUMPHREY COMPANY, INC.

October 2, 1957.

STERN BROTHERS & CO.

'* '•

:f "r'

only speculate! as to the positionin which we might now find our¬
selves
in

able to act as

however,

active and
pursued
important factor in
the
momentum
of
the

that

vigorous course the Fund
has

been

maintaining
world

trade

offer to buy these securities.

This announcement is not an offer to sell or a solicitation
an
The offering is made only by the Prospectus.

not been
and had not been
1 it did. We believe,

if the Fund had

existence,

and

$17,000,000

prosperity dur¬

ing the past year. Through the
breathing space and the (reassur¬
ance in the short-run provided by
the fund, the

opportunity has been

provided to effect the necessary
longer-term adjustments, - without
a
relapse into throttling restric¬
tions
on
international financial
trading
transactions.
The
wjjj nee(j to reconstitute its
resources, through repayment of
recent drawings, in converti-

by countries m

Bonds, 414% Series due 1987

First Mortgage
Dated October 1,

ancj

isphere, the Far

>■

1957

■

Due October 1, 1987

jun(j

for

lending

The

operations.

Bank's

currencies,

years

before 1956!

did

In this way its

revolving character will be maintained, and it can meet new situations if and when they arise

; V /
?
^ time the;fund has

again

ha ve

Anderson before
the Boards <-t Gov¬

.air... Mr.
by
the

Joint

ernors

Meeting cf

the

International

Monetary

International Bank for Re¬
construction and Development, Washing¬
ton, D. C., Sept. 23, 1957.

Fund

and the

The

is circulatedfrom only such
securities in such State. ; .

Prospectus may be obtained in any State in which this announcement
of the undersigned and other dealers as may lawfully offer these

promote stronger financial struc¬
tures and improve exchange sys¬

place.against a background
of truly vigorous economic growth.
tems, through its technical advice
Capital investment in general has and consultations and its financial
gone forward at an even greater participation in stabilization propace than,-the unusally high level
grams. Increasingly the fund pro- '
of the previous year.- In a number vide? advice to its members on
of countries a very high propor¬ various aspects of financial prob¬
lems
such
as- central
banking*
tion- of total output continues to
be
invested, as compared with money markets, and public fi-~

.taken

"fee, as

and accrued interest

Price 101.50%

the

continued" its steadfast efforts

operations

^le

well as the Complexities
policy per se. In all

HALSEY, STUART & CO.
BEAR, STEARNS &

BURNHAM AND

CO.

& COMPANY

R. S. DICKSON

INCORPORATED

THE

INC.

COMPANY

COURTS & CO.

ROBINSON-HUMPHREY COMPANY, INC.

WM» E.

STROUD & COMPANY

POLLOCK & CO., INC.

INCORPORATED '

AUCHINCLOSS,
FIRST OF

PARKER & REDPATH

MICHIGAN

CORPORATION

STERN BROTHERS & CO.

MACKALL &. COE

THOMAS & COMPANY

of exchange

of its consultations, with members,
and

the

technical

gives to members,

advice

the fund em-

October 1,

1957. 1

problems and dif¬
before us.

ignore

One matter of

back
upon the previous year, and take
a great deal of satisfaction in the
expansion of production, world

The

international earlier decades. .World trade has
part of my duties as Secretary of grown very sharply during the
the
Treasury,.., with
enthusiasm .A past year.
Production has ex-;I

Over Inflation

Concern

Although

This announcement is not

Treasurer who

and to pursue ' 1 ;
economic growth with sound money. . Mr. Anderson approves
I. M. F.'s and I. B. R. & D/s activities but warns borrowings should be repayed in convertible currencies to reconstitute yf
revolving fund for new situations if they arise again. States
taxpayers' burdens limit governmental expenditures, and .fore:>*
sees U. S. A.'s expanding production requiring larger imports. ^

•

investment,

world

and

cannot

order to obtain foreign-

told what they must do in

capital they seek by recently appointed U. S.
stresses world wide need to combat inflation

trade

external

International Monetary Fund ;

the World Bank and

Governor, of

their

ficulties which remain

two institutions in the use

their

and

transactions.

•

(1440)

The Commercial and Financial
Chronicle

measurable

The Aiow in the West

the

growth

the extent

immeasurably large growth of

the economy of San Francisco and
this entire region.

By NORMAN R. SUTHERLAND*

strates

the

faith

the

investing

public in American business

vast

new

the

than

know

however, that

warns,

heretofore.

Mr.

incentive—encouraging
Calls upon busi¬
explain our American way of life, and terms the Ex¬
change's efforts in directing people, industries and invest¬
ment

There is
of review

Stock

lot of

as we

birthday

history worthy
San

Francisco

However,

lesson

that

transcending

closer

eight
ago,

of 1849

argonauts

the

has changed. Throughout
intervening century, genera¬

never

the

tions of argonauts have found ful¬

fillment

here.

Neither

has

promise changed—nor will
Consider for

will,

what
like

hardly

it.

the

than

49ers.

was

shack-town

mudflat. But it did not look

like what it

pioneers.
looked

•

There

really

to all those
of them,
it

was

some

what

could

dreamers

were

there

be.

col¬

rocks

time

become

upon gov¬

little

businessmen,

less

about-town

citizens.

which

and

his

has been fashioned.
Our

with

forebears

built

tools which

reach

still

this
are

child

every

city

within

born

American. They are simple
tools,
their original cost was
very
So is the cost of hanging

but

dear.

them

of!

basic

nowadays. The most
implements is the

these

freedom of man's

enterprise, with

proper reward for his labors

his

achievements.

tool,

described

and

That

simple
simply, is

the right and the freedom to earn
an
honest dollar. The power of
that

tool

incentive.

Incentive!
a

What

to work

man

makes

him want

and achieve

bor?

footrace,

all?

What makes

win

else

constricts

achievements.

incentive

What

work

else

harder

than his neigh¬
a

boy want to

a man want

The

Soon, such

It
of

Incentive is
can

success

the secret to

our

financial

dustrial

built

the

material
♦An
tribute

institutions,

our

might.

Directly,

things

the

it has
forged these
wMch apoantuate
Mr.

Sutherland

San

Francisco
Division,
Exchange, on its 75th
Francisco, Calif., Sept.

Pacific Coast Stock

Anniversary, San
18, 1957.

in¬

and

of the

but

also

estate.

Here

that has

that

mudflat

inspired

the

men

The

challenge

vastly

larger
by

land

to.

free

...

to have

stead of
an

destinies

own

world

enjoy

...

life

opportunity

where

every

opportunities

child

fathers

established

fore¬

our

this

new

world

of independent and
digni¬
individuals inspired accom¬
plishment
in
their
sons.
The

fied

achievements

the

sons

children,

who

people,

di¬
V

arrow

industries,;

new

the

will

mobilize

public
cause

out

the

opinion

force

great

support

the

success

dividual enterprise, or to the
of

freely

individuals

enterprising together.

Such

economic

even

freedom, no man,
though he has all the other

human

rights,

can

be free.

our

(Special to The Financial Chronicle)

threatened.

BOSTON, Mass.—Carleton Dav¬

enport has become associated with

dulled

re¬

enterprise.
all

statesmanship

breed pub¬
institutions of

the

business
upon

—

for

That

business

articulate

for

public

genuine,

Davenport With Goddard

oppor¬

understanding
the
incontrovertible human

J. H. Goddard & Co., Inc.^85 Dev¬
onshire Street,' members of the
Boston Stock

Exchange. Mr. Dav¬
enport has recently been with Carr
&

Thompson, Inc.

was

In the past he

officer of Clayton. Securi¬

ties Corp., and conducted his own

investment business in Boston.

Investment Bankers Association
Name Slate for 1958 Officers
William C. (Decker) Jackson, Jr.,
President,-First Southwest
Company, Dallas, has been nominated for President of the Invest-

'in

human values,

better if

can

secure

firmly.

In the 75 years

reflect¬

are

today, there have

upon

successes

and

failures,

been

big

and:
Many of the events of the
period shaped the character of
this institution, of this
city, and
little.

this

happy

nation, just as important,
tragic events help mold

character of

The

same

Exchange

individual.

founded the

was

Robert

Craft

Wm.

i»..

sardine, Jr.

construction began on
the Panama
Canal, which was to
open
the
door
to
our
year

World.

change's
the

Pacific

the

Panic

year

second

the

Ex¬

birthday

came

1884.
Then, in its
early teens-the Spanish-American
War occurred. "
In
the

years

to follow,

earthauake

and

along
fire

came

institution

will

you

proud I

know
am

figuratively
candles

pardon

please.

personal

would

how

immensely

have the honor of

blowing
the

birfb^av cake.

Stock

out

the

Exchange

the choice was made
because the
company I represent
fraces its family tree back to
San

^rancisco's earliest davs—to 1852.
because the com¬
pany may demonstrate in its own
was

Communist
conspiracy,
latterday inflation.

Any
have

one

and

of these events could

destroyed
and

material

ad¬

hopes.

our

all

But

our

we emerged
stronger. Through it all, the Stock
Exchange has been an important

factor.
an

You might

think

arrow

the West.
For, not
only is the Exchange a weather
vane,
marking the variables of

economic

Golden
arrow

the
It

also
It

the

dollar.

the
is

points

business

witness

manifests
risk

climate

but

direction.

course

bears

and
the

West,
of

the

out

stability.
courage

confidence

And

William

demon¬

W. Carrol) Mead

ment Bankers Association of
America,
H. Craft, current President of
the

International

from each experience

the

Perhaps

Perhaps it

the

vances

Expresses Pride
you

and

Mussolinis, the second great
war,
the explosive dawning of
the atomic age, the full-bloom of

celebrate

its diamond anniversary.

reference,

the first World

the

monument, also, is the

financial

today

groups

in¬

suc¬

the

of economic freedom. With¬

1906,
War, the crash of
1929, the bank holiday in the
Every business, every
building, early
'30s, the abandonment of
every home, everv automobile—
the gold
standard, the Blue Eagle
our
total
prosperity itself—is a of
NRA, the rise of the Hitlers
monument to
moved West are
legion. They are
all about us here in San
Francisco.

in¬

this land of

promise,
help point the way toward
business
statesmanship that

can

being maligned and its

being

distrust

Exchange,

new

vestment to

ever

lentless conspiracy to

full

this
;

child¬

our

undiminished

material

ing

are

calls

in
1

free

Continued

children and

our

tunity

man's

The Stock

do, and the

But

mind to.

born could climb the
highest peak
of his dreams.
The

have

ambition, and-if
there, he can go

Heritage

and even

the
.

the

he has

ren's,

honest

chance

government master
earn

could

generation

incentive is

far

either

new

...

But

year.

This is our heritage. Our
great
responsibility is to see that it goes

government servant in¬

opportunity to

dollar

...

tall

efforts

We have the job to

lic

its

in the West that
helps direct new

mustered' by the pio¬
whose challenge was a wild¬

incentive to do it.

tools

enterprise system. It is to
hoped that the Exchange will

continue

clear.

erness.

our

rection.

that

neers

the

and

has. the

Wants

oppression.

establish

those

drearas-^-for the little

If he has

the
as

world in which they could select
their

our

any

than

securities,

predecessors

our

for

bigger—on

scale—then

faced

was

markets

the

vision

without

functioning

shack-town

The job to be done is
a

tion

the argonauts of 1849.

among

not

vast

our

the

tribute

our

would

nature of corporate
securities,
their relation to the

preserve

created

Exchange

the

serve

opportunity of a
unmatched
by
that

magnitude
seen

Business is

opportunity to see
and his dreams come
true, if he wants

who

men

address

our

fled

another

boy

utility busi¬
to
equally
in other fields, that

men

grow

faith in

men

than

governmental

world

key to Ameri¬

of life. Indirectly, it has built
cities, our cultural, business

way

and

the

and

growth

men-

out

came

dream—and

electric

sensitive

men

could

gravely apparent to those

in the

ness,

would

do not
aspire to e x c e 11,
they remain satisfied with drab
mediocrity. "

harness the atom?

those

cutaways

The

willing to follow, fewer

are

able to lead.

are

cess

motivates

and

with

long cigars who

government
does, the less the
citizen has to do for himself—and
the less he wants to do. As more

^*They

America

our

us.

bigger government grows, Palace Hotel after lunch.

among

It
was
not
just gold inthe
placer diggings that inspired these
men.
It was a
challenging new
frontier.
It was
opportunity.
It
was incentive. It was
everything,
immediately at hand, that is the

today look much taller to

The bankers looked taller
too, and
more
fierce.
So
did the other

become

were

Incentive in the U. S. A.

from

you also are lifelong
Franciscans.
I'm
sure
you

city was inspiring to us
for its citizens. The
bigger the youngsters then, even as it is to
cost of
government, the less re¬ us oldsters today. We little
boys
ward the citizen has for his labors
did not stop to think that one
day

fled

fibre

Many of

growth of government to the point
do-ers; there of
competing in business with its
were
men
of vision. They saw,
own citizens is a
reactionary force
perhaps, a vision of what we see Which
threatens our way of life.
today when we look at San Fran¬ It is
truly reactionary, for it
cisco. And they set about to make
swings backward 200 years to the
that dream come true. These are
complex of statism from which
the men a of any
generation, who the founders of our
country fled
give pioneering its elevated place
the lands of their fathers.'
They
in civilization.

them;

cur¬

available
spokesman for
die men who built the
company.

and

dependent

men

moment, if you
city must have

this

looked

that

closer

the

Each

The

to find their fortunes.

That migration never has stopped
and the
motivating force

not the indi¬
given the honor. And
surely,
the
individual

company,

was

San

only to absorb and

the

world.

connection,

to promote a better
public under¬
standing of the function of auc¬

getic and resourceful efforts

rently

incentive

population.
there
is
developing

vast
new
economy,
one
which will require our most ener¬
not

sys¬

acknowledge¬
ment of the splendid work it has
done, particularly in recent years,

California

Plainly,
here

facts

made

the

this

complete

courage

lured

independent

began.

came

doubt

there

they

toward

little

ernment

Sutherland

migration to
California

have

lectivism.

A hundred

and

can

voices his remarks only as

if they are to make
headway toward their goals.

ists

importance.

years

this

annual

gross

here on the Pacific Coast. It will
have
suc¬ must share some of the sentiment
ceeded
a
little in dulling
that that wells up within me at this call for more enterprise, more
tool.
The
siren
songs
of
do- moment. As little boys, buildings ingenuity, more determination and
gooders, mean-wellers and social¬ much smaller than these around in some ways even more

edge

Unfortunately,

history

which

in which

year

the

dia¬

1960's

has

envy

gain of five million in

system

the

just

implement

your attention
a

the

any

But I do invite
to

that

dull

nor

this

during the

real

and reward

It is this

system itself
possible
our
American way of life which is the

eleven

every

tho

incentive
ours.

which

the

cms

tem of

com¬

will

Exchange also

Surely there

vidual,

with

trifling trickle in

own

its

that

of the

mark

parison

century

that

revenue.

The enemies of our way of
life,
whatever their motives might be,
learned long ago that they must

desire.

your

million

cast

P. G. and E. will pass the
$2 bil¬
mark in assets and the
$500

the greatness of our nation—and
demonstrate the greatness of our
people.

ago was

fields

in¬

knows, and thereby

learned

year

gold

try

lion

Government and Mediocrity

history is

neither
purpose

about

happens to be the

even
just the
highlights
of

that

mond

in the West."

arrow

celebrate the 75th

the

Exchange.

recitation

"an

have

you

ing the public

migration to the Northern

tide sweeping
By 1970, one out
Americans will
be living in California. It is fore¬

community

much

The

Westward today.

financial

management

free economy is threatened
by government.

ness

first

because you men

was

vestor-owned business

our

doors.

Perhaps it
in

those existing

among

day

its

opened

which is said to afford opportunities

economy

and challenges greater

Sutherland

California

were

the firms with securities listed
the
Exchange the

Exchange's diamond anniversary, projects 5 million Californian
population gain during the 1960's, and anticipates development
of

Predicts Vast Population Increase

predecessors

"people's capitalism."

our

The word "capitalism" has been
soiled by the assassins of truth.
But it can be cleansed
by inform¬

agement.

pany's

West Coast utility head, in paying tribute to San Francisco

values of

man¬

Perhaps it was because several
of Pacific Gas and Electric Com¬

President and General Manager
Pacific Gas and Electric Company

Thursday, October 3, 1957

...

Investment

w imam

was announced

by Robert

Association, and President, Chase
Corporation,
wholly-owned
foreign

financing subsidiary of the Chase Manhattan
The

U. Kerr

announcement

Bank,

New

York.

was made
following the Fall Meeting: of the
Governors, Sept. 26-27, Santa Barbara Biltmore
Hotel, Santa Barbara, California.

IBA

Board

Named

with

Mr.

Jackson

are

the

Vice-President:

following

nominees- for

WilliarmM. Adams, Braun, Bosworth &
Co., Detroit.
Jardine, Jr., William R. Staats & Co., Los
Angeles.
William D. Kerr, Bacon,
Whipple & Co., Chicago.
W. Carroll Mead,
Mead, Miller & Co., Baltimore.

J. Earle

William H.

Morton, W. H. Morton

The Association will act

Co., Inc., New York.

the ?late at its Annual

Convention,

Dec. 1-6, 1957, at the
Hollywood Beach Hotel, Hollywood, Florida.
Nomination is tantamount to election. > The
new Preside
t.and the
Vice-Presidents will be installed Dec.
5, and will hold an- organi¬
zation meeting the

following day.'

(1441)

The Commercial and Financial Chronicle

Number 5678

Volume 186

lent and the interest rates higher
than

Mohawk

Banks Along the

broad

Canal

When the Erie

with

York

New

artery

traffic

are

Midland

actually two ways o£ counts—it now has over a
partner

Corp.—via

in
the

IVJarine
common

million

them.
But quite apart from
historic growth, the years ahead
of

stock, above mentioned, and the are expected to be even better,
$2 preferred, convertible in 2% The addition of huge electric cashares
of common., This latter pacity by the New York Power
issue sells at 52, virtually level Authority's hydro-electric instalwith its conversion value right lations (to be completed in 2Vz

New

ently, particularly since it
ing a new foundry for its Chev1956. Per share net has risen in be called for redemption at $52.50. rolet division. These and many
de- the same period from 96c to $1.62, As a matter of fact, the issue win other exciting new industrial ad-

customer reference, and accommo- $5,364,0^0 in 1948 to $13,697,000 in

opened

was

the State of dation.

1825, it provided

There

becoming

ingratiating qualities. First,
only bank stock listed on
York Stock Exchange,
It has
shown
a! steady rise in
earning power for years. Consoli- now, and since at that price the years) has already attracted to the
dated net operating income has yield is below 4%,^ against 5.26%
area a $150 million aluminum rerisen steadily and uninterruptedly on the common, there is no logical duction plant of Reynolds Metal
in
the
past
nine
years
from reason to buy the preferred pros- Co., and General Motors is buildthe

some

serving

has

common

it is the.

of the merits of a $2 billion banking institution,
area in New York State benefiting from
important advances in transportation facilities and a major
expansion in electric power capacity—Marine Midland Corp.

Listing

Midland

many

Enterprise Economist

■

the

From

Marine

COBLEIGII

By DR. IRA U.

credits.
investor
viewpoint,

corporate

]?or

example,

corporate

wV>pn

hank

TTtir*n

fho

^cilni'

rash dividends have heen in-

ailfl

nvnhaKlv hf» cfpadilv nnnuprtprl

mcnlt

cVinnl^

broader

banking
The

about

present eco-

at a 19 market price for ing common (now about 8.3 mil- for decades, will be a reality in
the stock, creates a current yield lion shares) by 13%. Book value 1959 and should convert Buffalo

in New which,

Marine Midland Trust Co.

nomic

York.

pre-

eminence.

Decades

000,000

roads, this his-

the

ditch

made

Midland

united

possible

function

low cost trans-

the

with

of
imported* and
portation

institution

si(ierakie magnitude.

through, .rail-

j' tone

of 5-26%- Such a return is excel- of common (also at June 30, 1957)
^nt ancJ especially attractive in was $16.49, up from $16.06 at the
view of indicated earnings of $1.8a same date in 1956.
in combined deposits make d share, this year-—and the real
Marine Midland Corp. was
llth iai.gest bank in the possibility
of another dividend founded in 1929, gaining its subStates. It performs well boost.
sidiarics by acquisition.
This
Marine

Altogether

be-

the

fore

loan

con-

Its $1,850,-

For those who, in

commercial bank

account

exceeding

jerk

phase

the

this hcrky- method may be slowed down by
market, are bank holding company legislation

seeking out issues providing strong
elements of stability, a close look
manufactured
^0peraung hicome. Moreover, in- at Marine Midland may be reIra U. Cobleigh
gOOdS
from
Fnr 10ii? the stock h«o
gooas
irom terest rotno on Inane Kntro hoon wnrrHnf
rates
loans have been warding. For 1957 thp slrw'lr has
New York
to
rjsing pleasantly.
For 1956 the narrowly ranged between 18 Vs
Buffalo and beyond; and in reaverage rate received was 5.23% and 20ya; and in 1956 it never
turait
.ma^e Possible big-volume (against 5% a year earlier). For sold below 17. Those who enter
miHion>
contributing,

and loan interest
in
1956,
54%
of

fin

ucts

I E °tl
tne
est to

110m

beaboard.

area across

Corp.

Midland

Marine

miliion

the same
New York,

much

serving

geographic
the

however, the average rate had advanced
to
5.57%.
About
$200

somewhat comparable way,

and

the first six-months of this year, this issue now are

lutein

tne

today

advancement

and

ioan
.

account
■,

devoted to personal and instal-

pro-

major financial
artery promoting the well being

vides

this

pay

no premium,

expiring in May of 1958, but meanwhile substantial internal expansion is possible by the addition of
V»i'siiinhf»c in thn nviciinn' units,
branches to the existing units.
(Three such branches have been
opened this year.)
; investors, present or would be,

thus asked to in Marine Midland Corp., may

and they may viewthe past of this

reasonably hope that their shares satisfaction

and

company with
its future with

wiU not descend drastically in considerable eagerness. The scrvprice, both because of the historic • „
a
rt
market stability of this issue, and lcc area
be®n a S10wmk ore.

ment purchase borrowings, where jhe consistent year by year rise
the loan quality has been excel- in earnings and dividends.
'.

from a modest lake port to a terminal and transfer point for ocean
shipping; and: the new knw-cpst
waterway to Europe should prove
a great stimulus for the St. Law-.
rence and Mohawk Valleys and^
the communities along Lake Ontario.
So for those who have rather
shied away from bank shares
either because of their low yields
nr nihnv rnasnnc
or other reasons, ixm say tako a
we eav take a
look atmost of the
Marine Midland. It possesses

qualities that

make
for

for

good investment and

long-term

renity.

stockholder

Joins

Reynolds Staff

SAN FRANCISCO, Calif.—Rob-

Marine Midland has been a star ert E. Bolan is now
in

and

adding

building

ae-

se¬

;

with Reynolds

& Co., 425 Montgomery Street.

commerce

industry from Buffalo to New
York. And, as was true 130 years
and

sioned

This is-noi

offer of these Securities for sale. The offer is

dynamic growth envi¬
depends
again
on

the

ago,

made only by the Prospectus.

here

NFAV ISSUE

improvements in trans¬
— the
New York State
Thru way, and the St. Lawrence
Waterway, to be precise. With the
added point that the new $600
million power installation at Ni¬
agara Falls, a by-product of the
Waterway, will, on completion,
add to the area a vast kilowatt
exciting

portation

The General Tire & Rubber Company

of Grand

90%

capacity equal to

$12,000,000

::::::

Coulee.

All

which

Midland

Marine

institution.
a

not

with

unique

but

bank

Common Stock Purchase Warrants

compaii^TTnwl5 indi¬

holding

vidual

Corp.,

due October 1, 1982

6% Subordinated Debentures

back¬

lively

ground material for a swift look
ai our subject company for today,

York

banks, all of them in New
State.
'Beginning
in the

West,

The

Marine

Trust

York

New

Western

Co.

Warrants exercisable on or

the

serves

and

become

lake port, about to

asc'apoyt. This bank has deposits
of $655 million and is the largest
bank

City.
'

#■

outside

state

the

York

•'

}■

-ii

-j-

Price 100% and accrued

and the $480 million Marine
Co. of New York. / Alto¬

153

sense

banks,

banks

operated
their

branch

—

the

•

undersigned,

as may

lawfully offer these securities in such State.
T

independently
with 98% of
by the parent.

owned

stock

not

bank.

Yet

offices.

series

Kidder, Peabody & Co.

Operational control is decentral¬
ized
with most board members
and

officers from local areas.

who

are

tional

banks

Advisory
company
take

individuals

directors

Glore, Forgan & Co.

sec¬

members of their

The

Boards.

Ball, Burgc & Kraus

holding

Smith, Barney & Co.
McDonald & Company

White, Weld & Co.
Paine, Webber, Jackson &

device does not therefore

away

local

400

some

either

are

Eastman Dillon,

Rlyth & Co., Inc.

Lehman Brothers

Altogether, spread over the state
there

interest

Copies of the Prospectus may be obtained in any State in which this
announcement is circulatedfrom only such of the underwriters, including

gether this integrated system
serves
79
communities
through

holder to purchase 20 shares

per

Elmira, Jamestowh,
Malonc, Massena
and Potsdam
with branches in surrounding

strict

83lAi

New
-

Binghamton,

Trust

(par value

Moving east there are big sub¬
sidiary banks in Rochester, Syra¬
cuse and Utica; others in Auburn,

areas;

after January 1, 1958 entitle the

share) for each $1,000 principal amount of De¬
bentures at $25.00 per share to and including October 1, 1962 and $27.50 per share there¬
after to and including October 1, 1967 as more fully set forth in the prospectus. The
Warrants initially will be attached to the Debentures, and until January 1, 1958 will
not be detachable and will be transferable only with the Debentures to which attached.

of Common Stock

Falls area em¬
bracing a major rail center, large
and diversified industrial plants,

Buffalo-Niagara

atmosphere

the

from

character

and

each

bank; but it does

essentially

Clark, Dodge & Co.

home-town

controlled

Hornhlower & Weeks

greater
loaning
credit in¬

assure

Dominick & Dominick

Hallgarten & Co.

W. E. Hutton & Co.

Union Securities & Co.

Dean Witter & Co.

Curtis

Bache & Co.

Hemphill, Noycs & Co.
Carl M. Locb,

Rhoades & Co.

financial resources, higher

limits,

interchange

formation
ment

and

portfolio manage¬

Ocipher 3$J(p>7.

it'-rrH

■»techniques, \ and/ inter-city

t»}

»w

•

The Commercial and Financial Chronicle

(1442)

"wroth"

Chance of

Decade

sion

There has been

superlatives

nation of

even

disaster

(2)

;

and

Stockholm;
hail

worst

''Don't

for

run

street

other

There'll

car.

along

any

minute!"
the

year

1957

endless

an¬

mium

And in

language

get

wonder

volume

about

Suppose

t unities

will

always

exist.

And

Blit

little

mean

unless

they

are

grasped

and

often

has

"knew"

heard

one

all

about

Connecticut

fifmly. How

Bhelby Cullom Davis

in a

life¬

people who
(I.B.M. or

General

Minne¬

sota

Mining) but never "did" any¬
thing about it. Which brings me
to
today's opportunity, not the
in

lifetime

perhaps,

certainly the best in

but

decade, in

fire and casualty insurance stocks.
Four

years

ago

highlighted

the

long-term benefits of invest¬
ing in insurance stocks. This key¬
seemed

proper

the

time

for

Massachusetts Savings Banks
bad just been granted
permission
to

stocks.

report that the intervening years
treated my thesis kindly.

one

year

would have received

after

ing

end

four years

for

Top quality insurance stocks not.
only have marked time but have
declined

during

while

the

ity insurance shares (not on
list, however) have declined
more—25%

But,

your
even

have seen, the funda¬
mental values of insurance stocks
have

rising—premium vol¬
ume, investment income, liquidat¬
ing value. And yet prices for the
past three years have stood still
declined.

for

Such

explanation

who

turns

conduct

—

East

jumps down to

cries

the

man

West,

up!

The fact is that during the
past
years

dread

dating

—

hurricanes

from

three

the

years

The
12
insurance stocks *
now
eligible for investment by Massa¬
chusetts Savings Banks have had

ago — underwriting conditions in
fire and casualty have gone from

their dividends raised 32%
during
these four years from 3.5%
yield
at cost to 4.6% at cost
now, an

almost seemed to compete
against
each
other
to
wreak
the
most

entirely
there

satisfactory

has

been

return, and
capital appre¬

ciation of 31%.

Why should yields and market
prices have so gained?
Because
♦An

bad to

worse.

damage.
was
a

Massachusetts

by Mr. Davis before the
Savings
Banks'
Annual

Meeting, Poland Springs, Me., September
14, 1957.

Earlier

in Greece and

great

deities.

deal
In

this

summer

about

the

if the

and heard

saw

modern

looks almost
1 These

address

The elements have

ancient

parlance

Gods were

practicing

you,

the

are

and
been by

have

the

sea

company

paraphrase it: "Come
high
water,
insurance
dividends will be paid!"

That is

fact worth remembering

Hell

when

you
insurance

with

had—let

gether

the

—

from the

lump

those

worst,

dividends
On the

them

three

years

have

stocks

through the

not

you.

history of
and
yet
down.

gone

was

the development of
the direct reduction

arc

wisdom

permitted

of the

state

authorities to buy they have ac¬
tually gone up since 1953, no less
than 32%.
Four years ago I explained why
this would be so—and I am not

going to burden you again with
the explanation today. It is simply
that an insurance company has
two sides (and this is one of the

losses.

the

that

losses

reserves

are

Only the latter,

is,

not always

are

Hence the present opportunity.
is a regulated busi¬

so.

and

laws

kind

According

rates

as"

the

semi-public

the

states,

be reasonable,
policyholders
are

Continued

rating

insurance

must

the

BANK STOCKS

The

process

far
co'n-

page

ered

and cobalt.

nickel

by the U.

oxide
at

oxide

Crum

and\the

plant

Lynne, Pennsyl¬

stock

for

New

banks

Jersey

and

legal for trust funds in Pennsyl¬

A. C. & A. M. Widmann

Join Westheimer Co.
CINCINNATI,
heimer and

Ohio—West¬

Company, 322 Walnut

Street, members of the New York
Cincinnati

and

mann

Stock

that

announces

Exchanges,

Albert

former partners

Wid¬

Widmann,

in Widmann and

Company, have become associated
them in their municipal de¬

partment.
Albert C. Widmann has been in
the

municipal bond business since
1921, and has had his own busi¬
since 1932.

ness

He is Vice-Presi¬

dent of the Paramount

sponge metal

well as convert it into fabri¬
cated, sheets, rod, and wire. Ti¬
tanium sales in 1956 exceeded $55
million up from $38 million the

Savings &

Stock

and

Bond

Club.

before.

year

exceeded

Net

$11

income

million

with $7 million in

1956

compared

1955. Titanium

Albert

ciated

the

end

of last

year

and

served

the

Army AntiArtillery in Washington,
D.
C.,
after
graduation
from
Xavier University in 1953. For the
past two years he has been asso¬
pany

a year

Widmann

Aircraft

earnings have not been reflected

pacity exceeded 11,000 tons

Lieutenant

National Lead's earnings since
this 50% owned company to date
has paid no dividends. Ingot ca¬

with
as

also

Widmann

general

member

Municipal
Group.
Byron

Foster

the

Cincin¬

Bond

nati

$15

Com¬

and

partner.

Dealers

Ray

Brand-

and

million of retained earnings is be¬

fass,

ing spent by the titanium

joining, have been in the munici¬

ation

for

corpor¬

whom

the

Widmanns

further

expansion.
In pal bond business since
spite of all the unfavorable pub-* 1929.
licity which the titanium industry
has had, this corporation is exper-

1928

are

and

Gold, Weissman Go.

Pocono Hotels Units

;

Continuing Interest in
Fischer & Porter Inc.

Capitol Products Corp.

Guarantee Bank & Trust Co.

International Textbook Co.

Reading Co. 3%s, 1995

Keyes Fibre Co.

♦

;

Formed in New York
■'

Benjamin

Weissman
.

formation

Gold

have

and

Bernard

announced

the

Gold, Weissman Cov

with offices at 39 Broadway, New
York City, as successors to the
investment
&

business

„

Co.

A.- Trent
•

•

INCORPORATED

Samuel K. Phillips & Co.

PHILADELPHIA 9
NEW YORK

•

PITTSBURGH
SCRANTON

•

ALLENTOWN

ATLANTIC CITY

Members

•

LANCASTER

Pennsylvania Bldg,, Philadelphia
Teletype
PH 375

N.Y. Phone

COrtlandt 7-6814

Joins

BOENNING & CO.

Pliila.-Balt. Stock Exchange

Established

1529 Walnut Street
115

Broadway

Philadelphia 2, Pa.

New York 6, N. Y.
CO 7-1200
ATT

Lloyd Arnold

(Special to The Financial Chronicle)

1914

LO 8-0900

Teletype PH 30

•

investment

savings

and

consid¬

Jointly with Allegheny-Ludlum Loan
Company, a member of the
Steel Corporation, National Lead
Bankers Club of Cincinnati, the
formed Titanium Metals Corpora¬
Municipal Bond Dealers Group of
tion Of America in order to man¬
Cincinnati,
and
the
Cincinnati
ufacture titanium

trus¬

vania.

plant

vania.

Buck Hill Falls Co.

Ex¬

legal

and

York

with

Government.

refined

New

for

Nicaro, Cuba, National Lead

located

Exchange

common

purposes

concentrates,

zirconium, nickel
operates

Stock

for

energy program with large quan¬
tities
of
uranium

John B. Stetson Pfd.

STROUD & COMPANY

oil

formed

New

(symbolr

The stock is considered suitable
for
conservative

In the atomic

The

Stock

tional Lead

owned

Exchange

the" Boston

Toronto Stock Exchange.

iron, by¬
passing blast furnaces.j

also

investors,

Cornoration

1956

the

tees and banks.

divisionsells

actor

to¬

stock, is listed
Stock

Baroid

standpoint of net dollar

losses in the whole long
insurance
operations,

utility.

of 12 largest Philadelphia Banks

the
ever

Laboratories, Inc., which is
some industrials whose dividends
building its first nuclear reactor
go surprisingly limp at any slight in
Plainsboro, New Jersey. The
worsening of business. Here we company is supplying the atomic

ness

Send for
comparison

com¬

the yields

compare

stocks

capitalization,

change, the Cincinnati. Stock Ex¬
change, the Midwest: Stock Ex¬
change,
the
Philadelphia-Balti¬

outboard

energy field, Na¬
has joined nine other
companies to form Industrial Re¬

Insurance

PHILADELPHIA

LT),

Jointly with Republic Steel, the
P-N

The

The mud is also protection
against
atomic radiation.
-

Based

was
split three-for-one in
October, 1951 and,.is once again
a split
candidate."'"V% ■. -

thoroughly di¬

casting machine

15.8%

1.947.

York

cameras,

from

stock

drilling muds used as- a lu¬
brication
in
drilling operations.

end
many

summer

duces the

Maintained in all

very

$5.50. Each year during
past decade dividends have
been increased. Dividends of
$3.25
a share were
paid in 1956 plus 2%
in stock and this
year dividends
may reach $3.50 a share making a
new all-time high. National Lead

well

invested in high grade securities)
and the insurance side which pro ¬

Trading Markets

the

50% of this di¬

increases

present

mated

ti¬
the

The

shall

output

industry.

ago.

May I be pardoned, therefore,
re-emphasizing one of my key
points in my address of four years
we

mass-produce aluminum
engine blocks lor the automotive

for

And

industry.

manufactures

frying pans. The
recently
purchased

built

eligible for Massachu¬
Savings
Banks
are
32%)

capital, surplus and

Active

has

earnings were $5.23 per share and
1957 per share earnings are esti¬

fixtures.

largest die

now

delightful

Lead

motors and

years

the

disposable income

pigment with 70%

mowers,

pany

.reduced

Camden,
Continental,
Federal, Fidelity Phenix, Fireman's Fund,
Hartford, Insurance Company of North
jokes, albeit wry, in the insurance
America, .Merchants,
Northern,
North-;
business today):
western National, St.
the investment
Paul, Westchester.
side that produces the income (the
are:

orders.

Lead

1950 and 8.9%

versified and consists of parts for
lawn

A Proud Record

National

vision's

Not

case.

been

tinuous

eastings sold to the automotive
industry and to aircraft manufac¬

versa.

higher than four

have

Explains Divergence
three

setts

consumer

and not the construction

turers. More than

and the dividends of the insurance

as we

been

im¬

Doehler-Jaryis division, in
its. various plants, produces die

dividend, method,! that

dividend; has

ago.

in price.

or more

would

home

and

The

the

all

maintenance

bathroom

from .in¬

earnings

for.

products from white wan tires and
billiard balls to door knobs and

valued

were

Such has not been the

three

past

vic¬

have,

sub-zero—and

vice

the

general market
has advanced 25-30%. Good qual¬

years

cutback in its produc¬
new

strong financial position. On June
30, 1957, current assets exceeded
$173 million with working capital

output going directly into paint,
while 30% is used for consumer

made

paying to hold the shares rather

one

31%.'

no
its

National

provement and not new construc¬
tion." The
paint! business varies

operations,'they would be
at

Irish

than

the

stocks

their

the

capital appreciation of 35% and

tion

as new¬
of over $119 million and a current
acrylic latex interior paint., ratio of 3.3 to one. In the first six
Ready-mixed paints are gaining months of this
year, the pre-tax
popularity made with various pig-, profit margin reached 19.8%. In
merits including antimony oxides. 1956
the
pre-tax
margin
was
The major share of paint sales is 13.6% whereas
it has shown con¬

tanium

not commensurately
underwriting
losses.

insurance

have

them

in¬

beat

Northern

Some

tory.

these,

that

is
not

would

shareholders

shares then than now. Dur¬
first year there was a

your

casualty in¬
And I am glad to

bave

(and

fencing

ium oxide paints, as well

with

after

have

seem

course, but
with
their,

valued

had

you

that

Run

surance

sold these

after

year

Bull

only

That is three years ago. Yet.

1954.

invest in fire and

surance

av¬

address), in early September,

you

oppor¬

tunities

one

bought them

they will.

dozen
on

had not been long-

you

term Investors and had

anything—op- stocks
po r

these

retreat

Pre--

than

worse

"worsts"

surance

the

Heaven.

for

in¬

erage, investment income 36% and
liquidating values 40%.

over¬

excited

from

companies has risen 22%

this meant not
to

rain

have

been

has

•

The

underlying values
creased, as predicted,

of Wall Street

note

(3)

in history;- (4)
Taking all
insurance
lines to¬
gether, 1956 was the worst in his¬
tory from the viewpoint of net
dollar losses;
and
(5> the first

'a sleeper."

saying—
pretty girl or

probably best

fifty-one years. The paint line
consists of lead oxide and titan¬

the

the Doria
1956 was*the

1956!

the

known for its line of paint hear¬
ing
the
"Dutch
Boy" label, a
tradcrmark that has been used for

disaster

peacetime' history,

succession of

best

marine

Security I Like Best
Lead

half of

time

witnessed

1956

insurance

worst

hence. Of the firms mentioned, singles out Northern Insurance

National

insurance

American

count;

profit margins; (2) potential increase from 3.5% to 4.8%, at
today's cost, by end of 1959 with possible 78% price appre¬
ciation; and (3) a 38% increase in dividends in two years

The

(1) the hurricanes

history, costing more than $250
million, part of which fell in and
helped to spoil also the 1955 ac¬

appreciation, despite the worst three-year losses in insurance
operations, offer the best buying opportunities in a decade.
Mr. Davis predicts:
(1) regulatory action will correct lost

in the Fall of 1954 were the worst

spells out unique opportunities in
fire and casualty stocks; and notes stocks permitted to be
bought by Massachusetts savings banks, which in past four
years have gone up 32% in dividends and 31% in capital

used

not

Insurance stock specialist

for

< worsts

Hollywood script

For example:

Managing Partner, Shelby Cullom Davis & Co., New York City

There

Continued from page 2

writer.

By SHELBY CULLOM DAVIS*

com¬

succes¬

bests!) that would tax the imagi¬

In Insurance Stocks
.

insurance

the

panies.

Thursday, October 3, 1957

....

BEVERLY

HILLS,

James G. Cloud has

Calif.—

become

asso¬

ciated with Lloyd Arnold & Comr>cmv-

3R4

North

Camden

Drive

(1443)

The Commercial and Financial Chronicle

Number 5678

186

Volume

will

U.S. A. Dollar Aid

continue,
dollar
them

duce

their losses by

cut

short
positions.
And
the
gesture conveying the
impression that even now the
British authorities are not fight¬

Hindeis Britain's Recovery
By PAUL EINZIG

the

progress

but

exchange

some

Under existing

towards convertibility.

sibly

steps takby - the

-en

British

any
ures

aur

applying
additional unpopular measin defense of ^erling.'/ v^v

thorities to es-

well know

the trade unions

sterltablish a ceil- ing. should continue to deplete the
ing to capital gold and dollar reserve a stage is
it, if speculative pressure on

expenditure
d

a n

liable to be reached at which un-

credits, would
go a long way

fear, together with the

to their senses,

The

convey

long

taking the
.line of least resistance in face of

batch

.stituted
,

first step
of

ment

firm measures con-

crease

decision

The

•million

time

some

arranged

with the Export-

ago

the

that

showed

Bank

Import

$500

utilize

the. credit

But lmmediately after the announce4ts resistance to wages inflation, ment concerning the dollar credit
It was no doubt intended to be a
the T.IJ.C. indicated that it was
•gesture to discourage speculation in a fighting mood, and one of
against sterling.
But from that the railway unions put forward a
point of view it was utterly fu- claim for a 10% wages increase,
tile, because every foreign ex- Other unions began to press simchange dealer had already been ilpr claims they previously subGovernment

itself

did

alto-

not

really meant business.

funds,

black

rationing, food queues and

grant¬

furthc/r

physical controls

that a

Labour

the

It would be even more
the Constitution
of

and

States

United

were

policy in face

spiral

could

period., As it

physical controls would ob¬
the necessity of a 7% bank
and of unemployment through

of the .wages

erate

the

continue under

rate

By making

•

announced the appointment?
Edward

Jr. and
district rep¬

Dantler,

Robert F. Keegan as

resentatives.

would

Mr.-Dantler

ciated

with

also

was

Dean

served

formerly
Witter
five

•

asso¬

The fate of the wages demand
the British /people against
short-sighted greed of the of the railway uhions will consti¬
tute the test of the Government's
trade
unions, and
against
the

.Investigation.

and

thorities
draw

existence

the

aware

were

it at

did

created

the

fact

there

this

in southern California

with head¬

■

spinelessness and incompetence of
the Government.

Wants

British

ground

which the

Government

criticism

Control

Exchange

Another

deserves

persisting: in its

for

quarters in Los Angeles,

assisting

Vice-Presidents
Ernest
policy. Should the Transport resident
Commission be instructed to meet Lewis and Robert Frank.
the claim even partially, private 1
Mr. Keegan was most recently
employers will follow the exam¬
associated with Piper, Jaffray &
ple.
In that case the credit
Hopwood in St. Paul. His head-.
squeeze
would be of no avail
quarters will be in St. Louis.
' 4
against the wages inflation.
For

new

failed

object.

This announcement

is not

ojjer oj securities jor

sale

or a

solicitation oj an ojjer to buy securities.

October 3, 1957

New Issue

in-

was

speculators to
positions in

deplorably in
it tended to

Indeed

lators is determined by

was

Columbus and Southern

the view

which will enable the trade unions

plundering the com-

80,000 Cumulative

they take on the prospects of the
wages spiral. If they believe that

Ohio Electric Company

Preferred Shares, 6% Series

the inflationary increase of wages

additional

protection

continue

sterling,

Par Value $100 per

Price $100 per
plus accrued

Drugs oil the Market
drug storks. Thanks to
Thanks
*'

the growing importance

That's why we've

been gradually expanding*

Lakeside Laboratories,

Inc.,

our

inventory,

Shulton, Inc.

Lilly (Eli) & Co.

•••

•'

•

Marketing

Merrill Lynch,
70

PINE STREET

Company

just Calb-^

•

like—

The Ohio Company

Dillon, Read & Co. Inc.

* V"

The First Boston Corporation

Blyth & Co., Inc.

«.

Lazard Freres & Co.

Smith, Kline & French

'
Stuart

•

(who are among

G. D." Searle

Baxter Laboratories

For current quotes,

dividends from August 1, 1957

of health and medical insurance plans.

currently make markets in—or find markets for stocks

Copies oj the prospectus may be obtained Jrom such oj the undersigned
the underwriters named in the prospectus) as may legally ojjer
these securities under applicable securities laws.

endless parade of miracle drugs.

steadily increasing lifespan. Thanks to

our

interested In

More investors than ever4before seem

„

Offices in 112 Cities

Stone & Webster Securities Corporation

Hornblower & Weeks

Hemphill, Noyes & Co.

V
i

•

Pierce, Fe.nner & Beane

Fenner & Beane

•

Department"

Merrill Lynch, Pierce,

„

NEW YORK 5, N. Y.

o£

the

produce precisely the opposite effeet. For the attitude of specu-

the

Britain
this

masses

that

sterling,

situation,

new

credit

dollar

the

tended for inducing
cover
their
short

announcement,

attention, of

semi-illiterate
to

position

the

draw

mitted.

au-

moment's notice. On

the other hand, the
which

this

British

the

that

He will be located

•

credit,

Co.

years

agent for The Federal Bureau

Wages

Key Lies in Rail

greatly

credit squeeze."'

quite plain that no further dol¬
would be forthcoming, the
people

Edward K. Dantler

Robert F. Keegan

has

viate

shelter of dollar aids.

early post-war

is, the Socialists are in a position
to
impress
the
electorate
by
claiming that the return to mod¬

amended

effect, because that would
further
remove
hopes that the

to that

soft

Government would adopt
necessarily mean a return
the bad old days of the war

would

help

'gether trust in the effectiveness of

Investors,

Fundamental

in it.'

against

passed

American

Government

the

whether

sors

Inc. and three other mutual

lars

union spokesmen .carefully refrained.from disclosing their intentions. They were waiting to
see

effective

after the in¬
bank rate trade

the

;

excessive wages demands

American

the

of peace.

-'i

•

if there is a

ing any-further non-military dol¬
lar aids or loans to Britain in time

mitigated

several days

For

resist¬

Hugh W. Long Appoints
Two Representatives

ideological

should-be

credit arrange-

Encouraged Labor
And Speculators

ance.
•

resistance

it ..* would
greatly
people really markets,
want to help the British people— •strengthen its chances at the next
as distinct from helping the Brit¬ -general election. For it could then
claim
convincingly that any
ish Government of the day—a law
If

putting the
reasonable

instantaneous.

was

. •

the

continue.

SL,ch fears. Indeed the reaction of
the trade unions to the announce-

relapse into the policy

depends on
inflation.

dogmatism of
Moreover, if in existing cir¬
the premature dash to laissez-faire, cumstances the Government were
and to: buy temporary popularity to adopt the controls which could
by allowing wages inflation to be adopted without a return to
in

materially

has

ment

following op

of taking the line of least

towards

their

general "free
for all" the trade unions are fully
entitled to take their full share

indulge

Government to

wages

control,

deprive

of their

Jjiey also enabled the Con¬

servative

resist
at the risk of

unions' into

ment of the dollar

;least, possible that rejoicing over
the hardening of the British Gov-ernment's attitude was premature,
the

—that

frame of mind. But the announce-

seems

now

way -

trade

their excessive demands was over.

the

through" cheap money policy and
excessive welfare state expendi¬

major strikes, would have gone a

i mpres-

the

realization

employers

claims even

wages

-sion that the policy of

Unfortunately,

indulge in the ideological dogma¬
tism of nationalization, inflation

ture.;

but its fate in the long run neces¬

productionJ of luxuries,
ELIZABETH, N. J.—Hugh W.
the trade unions
main excuse in support Long & Co., Incorporated, spon¬

the

for

They en¬

would

possibility that this time
really means to

encourage

measures

did

Einzig

Paul

of fool's paradise.

abled the Socialist Government to

Government

the

financed

have

years

inability to pay
material imports.
This

raw

the

unions

trade

•

for

the

bringing

aids

degree of exchange

sumer

Sterling is secure for the present,

together with the adoption of se¬
lective bans on capital and credit

The billions of the dollar

and

result of Britain's

towards

For,

some

would develop as a

employment

would be in a position
to the con¬
the cost of higher wages.-

that they

sarily

loans

preference

assuming

be safe in

character of both Government and

munity for another two to*three
months with impunity. / And it
announced it appeared reasonable did foreshadow the Government's
to -hope
that- this measure, - to- intention to use these credits, poswith

would

firms

private

continues,

spiral

wages

payments of the United Kingdom
is but a drop in the ocean of nonBritish claims on Britain's dollar
resources.
The re-introduction of

-people.

of the bank rate of 7% was

geiher

increase to the selling

price of their goods. And if there
should
be
indications
that the

beginning of the
period dollar aid re¬
ceived by Britain has largely con¬
tributed
towards
softening
the

this belief.'

post-war

'CLONDON, Eng.—When the in-

the

to add the

to continue to pass on

Deplores U. S. Aid

paradise"; and chides his Government's "premature dash to

higher; wagea

financing ,of

payments does not require addi¬
tional bank credits so long as the
industrial firms are in a position,

dollar gap

From the very

deplores his Government's announcement of possible recourse
to 500 million dollar credit; contends U. S. dollar grants and
loans has softened Britain and "financed 12 years of fool's
laissez-faire" and premature progress

arrangements half
world is likely to finance its

the

through the free com¬
modity markets in Britain.
In
such circumstances the Surplus of
£200 million on the balance of

lators in

ground out from under excessive trade union de¬
mands and to stiffen the fight against inflation.
Dr. Einzig

Dr.

the

tainly does not discourage specu¬

cut the

crease

adopting measures to fa¬
yet another retreat cer¬

are

cilitate

control, and re-introduction of moderate physical control, are
some of the measures a leading British economist prescribes

convertibility.

towards

ing with their backs to the wall

dollar aid, reimposition of

Cessation of U. S.

dogmatism

fact that it has
greatly facilitated the speculative
attack on sterling. Simultaneously,
with measures to resist inflation,
measures should have been taken
to reverse the grossly premature
spite* of

their

covering

of ideological

attitude

amount of tem¬
credits would in-,

porary

Paine, Webber, Jackson
.

& Curtis

Reynolds & Co., Inc.

W. E. Hutton & Co.
L. F. Rothschild & Co.

Shields & Company

The Commercial and Financial Chronicle

(1444)

log, making it less dependent
government defense work

Electronics

THE MARKET.,. AND YOU

than

some

of the

plane outfits.
❖

Chairman

❖

had

been
opti¬
mistic peaks of earlier in the
year despite the fact that it
is a prime
group
when it
comes to candidates for
high¬
er
earnings this year. Some
estimates give Allied Labora¬

the turnover
has run around. 250% of the
market this week after capitalization where the mar¬

some

stock

the

So far this year

finally shifted to
cautious1 buying in the
average

Some sort of

rally

was

ceded

in¬

dicated. In fact, the list hadn't

July

Tobaccos
not

high

mean¬

"vital asset"

most

examples to illustrate usefulness in medical diagnosis, personal
communication, and voice-controlled, space and time

radio

saving, electronic systems.
The electronic horizon

than

times

points

much

from

the

made

was

than

section could be R.

crease

quite

re¬

tistics indicated
crease

normal in¬

consumption despite
the implications and profits
were
good and promised to
slow down

determination to

the

first

the

boom

Federal

Giant New Issue

sion

Standard Oil (New
Jersey)
was
sufficiently confident of

or so.

rent
if

Foods

dividend

has

were

some

de¬

been

into

the

rate

available

issue

well

yield bracket,
both the market and business
mand, a classic refuge when well above the general aver¬
to put on the calendar a stock
the feeling is prevalent that
age of around 4% %.
offering running between nonessential consumer expen¬
$250 and $300 million which ditures are to be
Un-Split Gulf Oil Liked
curtailed.
put the Jersey stock under a
of pressure for
awhile.
The selling,
however, couldn't

"bit

drive the issue

even

its 1957 low and it
snap back

close to

was

able to

smartly when the

Gulf Oil, a perennial disap¬
They weren't overly conspic¬
uous on
pointment to those who have
strength yet but most
been banking on an imminent
were holding
only a point or
stock split, was still widely
two under their
year's peaks
despite the recent market set¬ Regarded among oil fanciers

elec¬

deal

field of

deavor
been
t

e r

David

en¬

has

p r

ran

and

also

infrared

name

just

devices

"snipei^-

few of the-

that

figured

in the war.
Since
then,
our
Armed
Forces
have
come to rely
increasingly on elec¬
tronics.
Today,
for
example,
electronic gear accounts for fully
the
cost
of
an
all-

weather

data

processing

significant

life

less

be decisive."

;

fourth

phase

electronic

development brought television—

of capital

for

expanding electronics in¬

'en

have

our

authority than General
Spaatz, former Air Force
Chief of Staff-, that in any future
war
"superior electronics would

companies'

funds

plane,

Carl

major

source

fighter

and
longrange missiles unerringly to their
targets. We have the word of no

The

that

jet

electronic guides direct

The

the

scope," to

insurance

dustry.

mili¬

during World War II.
We had radar, sonar, loran, sho-

become
the

effect to

great

uses

tialities of these systems.

lis

with

tary

'•

•

electronics

saw

one-third

its

systems. Among insurance people
there has been wide acceptance
of the practicability and
poten¬

in the United

use

devices

electronic

impact. To¬

than 135,000,-

are more

'States.

ing electronic

Sarnoff

special needs.
Many
companies
have
devoted
thoughtful study to the develop¬
ment of plans
for the efficient
use

day, there

000 radio sets in

prominently

ing

insur¬

in adapt¬

trans¬

durable force with immense

electronic

more en-

than
ance

into

radio

agreeable novelty

cultural and economic

turned

years,

watched

The third phase

common.

years,

formed from

busi¬

great

the year, earnings projections
for this year come to around

and

recent

the part

authorities

insurance

tronics have

half of

better because of recent
$7 which is more than double
price increases. Lorillard, the the $3.20 dividend rate.._The
also by the fact that business low-priced item among the
company's payout policy in
tobacco giants, was a rarity recent
has yet to show
years has been close to
any ability
on
a
to rebound in
couple occasions as the 60%. Last year's earnings
spirited fall
fashion.
only issue on the Big Board were a bit short of $6. Despite
to post a new
high for a ses¬ the good prospects, at the cur¬

the credit

business

ness

price increase that wasn't
effect

particular.

and

rior

senior

cently had been seriously im¬
paired, both by the evident

is filled

The

candidate in the dividend in¬

able to show supe¬

were

leading

avers

opment offers the promise of being a boon rather than a bane;
fears of technological unemployment; and provides

—

The R. C. A. head

refutes

strength even when the Reynolds Tobacco which ap¬
general market was weak. pears to be on the way to a
Effects of the recurrent can¬ record
average,
a
trim of around
profit this year. The
cer
scares
were
12 V2%.
having less company has consistently
jolting effect on the indivi¬ posted the widest profit mar¬
The confidence of which so dual issues, government sta¬ gins in the business, and with
while had sheared

make.

can

that this concept born of the latest phase of electronic devel¬

think, for the insurance business

Something

possible

prosperity, economic growth, and winning the Cold War that

this

points at Parke Davis and Bristol with exhilarating prospects ifor
industry and business
and, I
Myers.
^ '
high.

dozen

Firmer Tobaccos

ing sessions together since
early last month. The retreat
the

skeletal outline of automation's

recent levels from the

put two worthwhile advanc¬

from

three

Corporation of America

Board, Radio

oncoming industrial and commercial prospects are depicted by
Brig. Gen. Sarnoff in extolling the immeasurable contributions

had ket noriti is turnover of 12 to
lolled within easy reach of 15% of shares listed. The fire¬
the February low for half a works in Lukens, however,
dozen sessions without show¬ had sputtered out lately. tories a chance to boost 1957
ing any clearcut intention of Where it had shown a price results from below $4 to
seriously testing - the critical appreciation of better than nearly $5 and increases of
250 % from the 1957 low to half a dollar a share are ex¬
bottom level.
*
#
*
its peak, the issue had re¬ pected in Warner Lambert,
industrial

the

A brief review and

whittled back from the

Traders

STREETE

Drug

the Horizon

warBy BRIG. GEN. DAVID SARNOFF*

By WALLACE

prime

Thursday. October 3, 1957

...

first in black-and-white and

now

vivid, exciting color—to broad-

and

brighten

existence.

our

accumulated During the first postwar
year,
payments of the 'television sets in the hands of the
100 million American policyhold¬
public numbered fewer than 10,-

from

ers

money

premium

has

done

electronic
opment.

much

encourage

pioneering and

These

the

are

devel¬

all

portant insurance policies of any
industry, for they provide a per¬
endowment of versatility

vitality,

lead

and

to-

and

programming was con¬
few hours daily from a
handful of broadcasting stations.
Now, little more than a decade
lajter,

manent

and

000

fined to

im¬

there

are

45,000,000

over

television
sets
in
use,
covering
four out of five American
homes,

new

for in¬ despite its 20-point mark- products and services.
and there are more than 500 TV
down from the 1957 peak. It
It may well be said that the stations on the air. The
profound
insurance business
provement.
through the impact of television on our daily
only a bit more than a point is definitely included in the
intelligent application
lives is acknowledged by social
of
elec¬
below its top although so far issues with higher earnings
tronic equipment and
through the scientists, by pollsters, and even
Steels swung
pretty much this year it hasn't yet built prospects even apart from wise investment of its funds—has by cartoonists. I like to
re<)gll the
with the
general market up a range of as much as 10 capital gains in sale of its contributed importantly to the ex¬ cartoon of the father who returns
without
showing anything in points. National Daily simi¬ Texas Gulf Sulphur stock. uberant upsurge that has made from work to find his small son
electronics a $12 billion industry, sitting in front of a TV
the way of
set, clutch¬
independent ac¬ larly was only a bit more The nature of the increase is and
one
that is growing at the ing a suitcase. "He's running
tion. Their fate,
away
marketwise, than a point away. It, too, has generally projected at be¬ rate of three to four million dol¬ from
home," explains the lad's
seems
to
be
closely linked had a mundane market life tween $2 and $2.50 a share. lars a day.
mother, "just as soon as this pro¬
with the
public reaction to and a range of not even half And, as the followers of stock
gram is over."
market

climate

showed

im¬

back. General Foods,

stance, has been available at

—

»;:

the

new

automobile models a dozen
points. Both had well split candidates normally
only straggling into sheltered dividends on the find, an eventual split is still
the
limelight. This will be a basis of recent earnings state¬ not completely hopeless.
if
ijc
continuing story for some ments.
which

5-S

time.

The Five Phases of Electronic

Under

the

unveiling

schedules so far
announced,
it will be well into
November
before all the
around in

new

lines

are

supply and prelim¬

inary indicatibns
acceptance

consumer

be gauged.

can
«

Aircrafts Still Sold :
.

Aircrafts had

Corn

Products,

that

hasn't

markets, all

and issues in the
group were
no

the

accent

bellweth¬

been

trying times popular in recent

in tune with the soft

overly
years when

was

growth prospects, is also

pro¬

strangers to the lists of
new lows.
However, the circle jected to better earnings notwas
growing of those who only this year but for several

Specialty steels appeared to think the selling had been subsequent years as well.
slowing down. Lukens, for overdone, particularly in Corn Products' growth pros-;

fifth

phase

electronic

development has barely begun,
yet even now it gives promise of
exerting a further and still great¬
,

By comparison with the life in¬
business, which has over
300 years of
experience behind it,

surance

electronics

influence

youngster.
few years be¬

our

phase is known

new

mere

lives.
as

This

Industrial

or
It dates back only a
Commercial
Electronics, and
fore the turn of the century when involves the widespread applica¬
tion of electronics to our factories
a British
physicist, J. J.

Thomson,

discovered

the

monstrated

rapid

The

Development

are

its

electron
true

and

and offices. It is

de¬

character

of what has

automation.

the

tiniest thing in our universe.
In the development of electronics
since then, it is possible to trace

first

phase

to be known

Indeed,

pointed

"true automation

out

can

"Fortune"

recently,

be achieved

only by electronic means."

five broad phases.
The

Magazine

vital ingredient

come

involved

the

application of electronic principles

The

New

Phase:

Electronics

Factory and Office
to
<j
communications.
This
began
reported
declines specific cases like Lockheed,
In this new phase, electronics
where the issue was now well pects are tied in with various with wireless telegraphy, and in
each quarter after the
rousing
is
diversification moves, p 1 u s- later years grew-into radio, tele¬
being called upon; more apd
into the 7%
first quarter
yield bracket
profit and the
phone and telegraph communica¬ more to provide the sensing de¬
nine-months' total of $8.71 (plus stock) and a 25-point broadened dines of products tion
vices, the means of communica¬
by long wave, short wave
discount from the
rolled up -by the
tion, and the computing systems.
year's, high that might enable the com¬ and microwave.
company

instance,

was available.
made all but
The second phase of electronic
Lockheed is in
impossible the
pany, noted up to now for its
enthusiastic estimates of 1957 the thick of the missile scene
development brought radio broad¬
earnings stability, .to edge
the
results of between $15 and and
casting and the days when every
prop-jet transport

$20

per

share. It

was

these

estimates that made the stock
a

skyrocket both late last

and

early this

in the issue set

year.
an

activity will start to
pick up next year. In fact, the
latest

year

Trading

odd mark.

where

report

Lockheed's
mercial

indicated

backlog in

work

ran

into ' the

[The

that
com¬

"growth"

from here

article
time

views
do

listings

not

coincide

other person you met told of hav¬

ing stayed
expressed

necessarily at
with

nearly "ChronicleThey

30% of its total order back¬

on.

those
are

this

the

any

clamped

until

morning
to

his

one

with
head.

o'clock in

earphones
Over

the

presented

those of the author
only.]

*An address by General Sarnoff before
the Life Office
Management Association,

Washington, D. C., Sept: 23,

1957.

The

complex the task, the
important is electronics' role
likely to be in performing it.
j
more

In American

ardry

startling
man

factories, the wiz¬

electronics
new

dimensions

efficiency.

adding
hu¬

We have aircraft

plants

producing intricately

toured

jet stabilizers from direc-

Continiied

con¬

page

New York Savings Bank of Brook-

years,

News About Banks

rilE

BRANCHES

NEW OFFICERS,

REVISED

CLINTON

•

Deposits

Bankers

and

ETC.

Cash

due

from

8,435,111

U. S. Govt,

CAPITALIZATIONS

security1

holdings
Loans

Surplus

Savings

East River

The

Bank,

Joseph A. Broderick as
and
Chairman
of
the

ment

trustee

Board

lion

Oc¬

erick

Brod¬

Mr.

for.

Award

•; •/ y

was

Chemical Corn Exchange Bank,
New York,

7, 1881,
completes

61 years in the

banking field

8 9

started

for

the

work

State

A. Broderick

successively

the

Company

In February, 1910,

...

;

he joined the
Depart¬

New York State Banking
ment

that

capacity until November,
1911 he was assigned to

1914.

staff

the

Charles
the

served

examiner and

District

Whitman

investigations

banking

trials.

1912- he

Attorney
assist in

accounting and technical
procedures adopted for the oper¬

ports,

Reserve

Federal

the

ation

•

His duties included the examina¬
tion of Federal Reserve banks and

sunervision

of the examining

activities of such banks.

He was

Secretary of the Board from 1918

due

and

Govt,

York

for

Vice-President, special¬

in foreign exchange work

izing

In 1926

period of nine years.

Kemmerer Com¬
mission to Poland in a study of

the

joined

banking and economic condi¬
tions. He was decorated as Knight
its

Order
Polonia in
Restituta by the Polish Govern¬
ment.
In 1929 he was appointed

profits

Undivid.

velt
of

Roose¬
Superintendent of Banks

Governor Franklin D.
as

State

the

New

York

and

subsequently continued under
Governor Lehman.
He held this
until

office

Dec. ,31,

the

covered

tenure

tory

of the country.

Deposits

1,567,226,112 1,496,661,681

Cash

337,220,628

329,424,848

discts.

844,986,480

829,764.690

profits

26,297,181

24,975,522

Orange, N. J., tendered his resig¬
nation of that office on
Oct. 1

Undivid.

■'

Cash

January,

He served from-Feb¬
1936, until Sept. 30, 1937,
resigning to accept the Presidency
of the East River Savings Bank
of New York.
He was the ninth
of 14 years.
ruary

President

10,

of that institution.

1952, he became

Chairman of the

the first

Board.

Loans

176,875,665

mar

Broderick

City.

was

Class of 1906

York

New
also

16,112,135
2

20,186,294

THE NEW YORK TRUST

Total

Cash

member of the

School of Commerce,
University.
He was

graduate of the American
of Banking.
Active in

and national
committees, he has been an Hon¬
orary Member since 1916. In 1936,

785.578,727

151,655,755

banks

security

U. S. Govt,

Loans

Coughtry .was appointed to
of Managers
of the
in

411,783,193

11,189,821

10,404,639

profits—

«s

MARINE

THE

1936.

President in

608.668.051

573,397.155

—..544,250,332 509,191,088
178,402,44!)

98,212,508

97,384,76}

security

U. S. Govt,

holdings
Loans

discounts 275,601,33.9 268,485,602

Undivided

profits—
<r

Lloyd

was

10,942,087

10,411,311

elected

to the
in 1939

Mr.

Lloyd

491,570,634

525,415,403

428,117,062 460,538,839

and due from

banks

118,771,481

159,340,393

93,477,947

Kermit
been

for 13 years. He was the first
President of the Orange First Na¬

Schweithelm

the

public

Manhattan

has

relations

Bank,

York, it was announced

the

Schweithelm
in

1926

and

joined
the
assigned

was

advertising department two
later. He

was

staff

appointed to
an

assistant

officer in 1952 and
named advertising officer in 1955.

advertising

Henry
elected

Trust

& if Savings

Bank's branch banking system

13,

the

merger

the bring the total of its offices to 198.
The banks on Aug.

31/1957, had

deposits of $2,671,000,-

combined

Continued

of The

This is not

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

160,000 Shares

page

offer to buy,

■

Northern Natural Gas Company
5.80% Gunuilative Preferred Stock
(Par value $100 per share)

Price $100 per
(Plus accrued dividends from

share
October s, 1957)

Copies of the prospectus may be obtained from uny of the several under¬
writers only in states in which such under ivy iters ore qualified to act as
dealers insecurities and in which the prospectus may legally be distributed.

Blyth & Co., Inc.
Eastman Dillon, Union

llarriman Ripley

Goldman, Sachs & Co.

Glore, Forgan & Co.

West

White, Wekl & Co.

Smith, Barney & Co.
Dean Witter & Co.

Ilornblower 4: Weeks

W. E. Ilutton & Co.

Securities Corporation

Drexel&Co.

Hemphill, Noyes & Co.

& Co.

Duverno}' has been
The Greater

Trustee of

F. S. Moseley &
A. C. Allyn

Lee Iligginson Corporation

Carl M. Loeb, Rhoades & Co.

Incorporate*

Incorporated

Kraft

was

elected

Na¬
tional Bank and Trust Company
of Paterson, N. J.
He was for¬

the

with

merly

First

the

Passaic-CIifton

National Bank and its

predecessor

Bank.

the Clifton National

Stern Brothers &

Kalman & Uompany, Inc.
Piper, Jaffray & Ilopwood

Tucker, Anthony & R. L. Day

Co.

Blunt Ellis & Simmons

Kirkpatrick-Pettis Company

J. Barth & Co.

DeHaven
The

Develin,, President of
Company,

Bryn Mawr Trust

Bryn

Mawr,

Pa.,

announced that

Vice-President
placed in
of the company's Customer

Lane

the

Irwin,

Bank, has been

charge
Relations.
Mr.

came

Dec. 31,

the Bryn Mawr

which

Cruttenden, Podesta & Co.

Henry Herrman &

had

the

Quail & Co., Inc.

trust

1954, when

National Bank, of
been

Cashier

for

Co.

The National Company of

Sutro & Co.

Irwin

company

Chiles-Schutz Co.

Goodbody & Co.

McCormick & Co.

Wachob-Bender Corporation

Brdsh, Slocumb & Co. Inc.

Bateman, Eichler & Co.

Caldwell Phillips Co.

Schwabacher & Co.
G. II. Walker & Co.

Elworthy & Co.

Irving Lundborg & Co.

William R. Staats & Co.

Newhard, Cook & Co.

McDonald & Company

Incorporated

Corporation

Baker, Weeks & Co.

J. M. Dam & Company

Robert W. Baird & Co.

Spencer Trask & Co.

The Milwaukee Company

Edwin

Laurence M. Marks & Co.

llallgarten & Co.

Dominick & Dominick

Clark, Dodge & Co.

A. G. Becker & Co.

and Company

First of Michigan

Salomon Bros. & Hutzler

Paine, Webber, Jackson & Curtis

Co.

& Co.

Incorporated

Pierce, Fenner & Bcane

Stone & Webster

Lehman Brothers

Kidder, Peabody & Co.
Merrill Lynch,

•

The First Boston Corporation

Securities & Co.

W. C. Langley

Oct. 1

years

dfficial

City.

Heller

New

to the

the

Sept.

National

Sterling

elected to fill a va¬
cancy on the Board of Managers.
He is a former director
of the
Dover
Trust
Company,
having
served
in
that capacity for 25

by George Champion, President.
bank

He was formerly

Directors.

director

Bank of New York

Vice-President

advertising department of the

Chase

to 1940 and

Chairman of its Board

thereafter

9,056,754

promoted to Assistant Vice-

President
and

9,361,405
*

has been

Murray

Mr.

member of the Board of Mana¬

gers

255.440,083

profits—
*

been

has

Murray

83,147,230

discounts 245,918,701

holdings
Undivided

1953.

years.

U. S. Govt, security
Loans

was

its Vice-President in

became

and

Orange was

June 30/57

s
resources

BANK OF NEW YORK

Sept. 30/57
Total

2,836,847

»••'-*;

*"* *;♦

dency.

Gustavo
THE

approval of share¬
regulatory authority,

National

zens

proving and making effective, as

the Bank's
Howard IB.
elected to the Presi¬

tional Bank, from 1933
203,534,974

—-

*i-:

Subject to

Comptroller of the Currency ap¬

meeting of
Managers,

Board

Managers.
June 30/57

Cash and due from
banks

77 ^ %\

"
3,531,546
.

old.

Frank

$ V
resources..—

Office

the

Coughtry

Mr.

elected Chairman of the Board of

TRUST CO.

MIDLAND

Sept. 30/57

Deposits

President in 1931 and was elected

NEW YORK

Total

Merger certificate was issued on
Sept.

Vice-

its

became

1922,

Bank's Board of Managers

••

discounts 412,858.161

<fe

Undivided

Reserves
.

50,830,580
21,457,985

discounts H23,796,021.

Bank

Board

Bank

180,401,102

156,903,521 149,730.698

holdings

in that capacity for

and due from

of their local

June 30/57

661,835,365 681,909,4-0

Deposits

the

COMPANY', N. Y\

769,939,845

resources

Undivided profits &

* '

• -

Succeeding him as Pres¬
Lloyd who has

is 89 years

Institute
many

165,461,780

discounts 397,598,219 412,174,678

Undivided profits—

36,506,086

holdings
Loans

Bank,

Savings,

Vice-President of the

Mr.
193,818,151 223.445,129

holdings

$150,000

■

since 1953.

due from

and

banks

from

•

30,663,737

19,553,525

U. S. Govt, security •

772,830,953

U. S. Govt, security

Mr.

attended GramSchool No. 69 in New York

Mr.

878,766,036

A1--

banks

ident is Howard B.
been

739,176,677

Deposits

1936, Mr. Brod¬
erick was appointed by President
Roosevelt as a member
of the
Board of Governors of the Fed¬
eral Reserve System for a term

Jan.

21 years.

June 30/57

V-83,519,753 108,131,489

Cash and due from

President

Coughtry,

Orange

after serving

851,248,831

resources

Deposits

the

increased

Sept. 30/57
Total

Frank

se¬

MORGAN & CO.. INCORPORATED

hold'gs

curity

Corpo¬

4^4,225,708

Govt,

Loans

Conn., has

453,956,787

banks 1_

Bank

$1,600,000 by a stock dividend and' San Diego, Calif., will consolidate
from $1,600,000 to $2,000,000 by their operations under the name
the
sale of new stock effective of Security-First National Bank
Sept. 17. (Number of shares out-: as of Nov.
1, 1957. The* consoli¬
standing—20,000 shares, par value
dation will add 44 branch offices
$100.)
•
&
*
*
to
the
Security-First
National

combined institution

due

and

from

Cash

begin
operations
Oct.
5,
bringing Saturday morning bank¬
ing to Stamford for the first time.

1,735,874,435

National

Juner30j/57:- Dec. 31/55
$T
$•
*
89i55R299-113,218,336

Total resources

capital stock of thei*

common

SALT LAKE CITY, UTAH

land, Texas, increased its common' Bank of Riverside, Calif., and the
capital stock from $1,500,000 to Security Trust & Savings Bank of

will

1.791,380.590

His
active

period of depression and recovery
in the banking and business his¬

Greenwich,

The

ration.

June 30, *57

Sept. 30, '57
Total resources-

1934.

most

Sept. 23

Federal Deposit Insurance

TRUST COMPANY, NEW YORK

IRVING

NATIONAL* BANK

FIRST

of'

shares, *

Heights, San Antonio, Texas,

Banking Department and the

cut

made

The First National Bank of Mid-'

been received from the Connecti¬

diSCts. 1,528,584,978

Commander,

Y., died

of 67.

Company,
434,355,700
1,559.240,638
38,158,862
36,088,353

455,139.746

hold'gs

curity
Loans

se¬

association will have

(Number of shares outstand¬ holders and
ing—8,000 shares, par value $50.)" the Security-First National Bank
•'
* *
*
of Los Angeles, Calif., the Citi¬

Approval of the merger of the
Security Bank and Trust Company

Sept.30/57

tional Bank of Commerce in New

was

(Number

17.

banks..

from

1919.

Resigning his position in Sep¬
tember 1919, he joined the Na¬

Jersey

stock

new

$350,000 by a stock dividend and
from $350,000 to $400,000 by the.
sale of new stock effective Sept.

2,760,101,122 2,728,544,120! of
Stamford,
Conn.,
and
the
\
737,732,247
752,925,453 Greenwich, Connecticut Trust

Cash-

■

1, 1914, as chief examiner,
serving in that capacity until 1918.

was

Deposits

joined the staff

Nov.

NEW YORK

Broderick

of the Federal Reserve Board

the

amo

3.105,106,636. 3,095,521,522

System.
Mr.

At the effective date of merger,

•"

Sept.- 18.

Broadway

Bank,

Total resources.

member of the Pre¬

liminary Organization Committee,
which outlined the system of re¬

under

effected

was

the receiving

at the age

Ariz.,

stock of $8,430,000.

common

merger

Deposits

Anton G. Kleine, retired Treas¬
urer of the Peoples Savings Bank,

Sept. 26 Thomas
a
Trustee.
Mr.

Company

the

European branches of New York
State banks. In the Spring of 1914
he became

N. J.

June 30, '57

Sept. 30, '57
*

and

examined

City,

..outstanding—6,000
value $50.)

par

director of the Besse¬

Trust

Yonkers, N.
BANK

Savings

Jr.,

OF NEW YORK

office

Keesee,

mer

EXCHANGE

CORN

CHEMICAL

boy, clerk, Auditor and Assistant
Secretary.

1,628,595

Franklin

Keesee is

Assistant Managers.

and

it. and

Callahan, George R. Fritz, Chand¬
ler L.
Mahnken, John F. McElheron and John A. Vander Drift,

Trust

Company

served

Trust

Morton

Anders

77,166,588

N. Y., elected on

Assistant Treasurer, and
E.
Anderson,
J. Kuper..

erman,

Brode rick

Joseph

The

with
The

Phoenix,

Phoenix,"

zona,

capi¬

value

par

45,396,162
77,856,194
1,824,406

47,358,753

—

discounts

sale

effective
49,068,344

60,533,052

The

Assistant Secretaries; Walter Sau-

7 On June 15,

the

from

Undivided profits

bacher, Fred J. Raichle and John
H. Yoe,
who have been named

this year.

183,291,855 169,946,294

due

holdings

has appointed ten new

Loans

City

Sept

standing—6,000 shares,
$100.)
;

tr. S. Govt, security

executives, it was announced to¬
day by Harold H. Helm, Chair¬
man.
They are: Richard A. Er-

and

resources..

and

banks *

York

Total

Cash

born in New

Dec.

Deposits

$500,000,

from $400,000 to $600,the charter and title of "First Na¬
stock dividend effective'
tional Bank or Arizona, Phoenix."
(Number of shares out-*

12,545,628
13,867,276

20.

stock

into "First National Bank of Ari¬

capital stock of $9,200,000, divided
920,000 shares of common
1,378,799
1,355,944
An increase in the common cap¬
stock of the par value of $10 each;
*
*
ital stock of The First National'
surplus: of, $8,000,000; and un¬
BANK
OF NEW YORK
Bank of Marietta, Ga., from $200,- /
divided profits of not less than
Sept. 30/57 June 30/57 000 to
$250,000 by a stock dividend
$2,549,047.
and from $250,000 to $300,000 by
*
*
204,425.666 189.057,04!)

GRACE NATIONAL

outstanding

Arizona, Prescott, Ariz.,

common

into

Madden

the

received

1951

Memorial

1—
ir.

achievements in business.

tober

Meritorious

For

profits

000

•

12,708,620

undiv.

and

with their

Broderick

Mr.

presented
Medal¬
Service. In

University

York

New

retire¬

York, announces the

New

discounts

stock

tal

11,466,938

14,534,023

<fc

with
r

common

Bank

The

Wis., increased its

37,872,470
;

35,922,225

and

banks

First National Bank of La Crosse,

June 28,'57
$40,887,347

$39,014,463

resources

YORK

NEW

CO.,

TRUST

Sept. 30,'57
Total

CONSOLIDATIONS

into

merged

was

Bryn Mawr Trust Company.

New York.

yn,

NEW

(1445)

Chronicle

The Commercial and Financial

Number 5678

Volume 186

Courts k Co.

J. J. B. Hilliard & Son
Omaha

Mitchum, Jones & Templeton

The Ohio Company

Pacific Northwest Company

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

Shuman,Agnew&Co.

Harold E. Wood & Company

Woodard-Elwood & Company
October 1, 1957.

Crowell, Weedon & Co.
Estes & Company, Inc.

Davis, Skaggs & Co.

(1446)

The Commercial and Financial
Chronicle

Thursday, October 3, 1957

...

Planting the Roots for Banking^ Development

The long history of the Ameri¬
can
Bankers
Association has

By ERLE COCKE*

other

his¬

tory. Embarkg

upon

tion

year,

find

encour¬

that

try is at peace,
our

peo¬

ple are enjoying record prosper¬
ity, and that generally a spirit of
optimism prevails.
*

A year ago, the
membership of
this Association honored me by

election to its highest office. I

grateful for that confidence. The
year

has

been

truly rich

experience for Mrs. Cocke and me.
During our visits all over the

country, you have been —
dividuals, as groups, and
organization

—

the

in¬
an

us,

and

events

year

disturbances here and

can

directed

the

years

toward

which

selfishly,
fruitful
some

building

have

the

dustry

our

objectives,

own

There

but

our

specific

must

put

diversified

in¬

democratic

velopment

that the forces of

process

will

that

ever.

generate

continuing spirit'of enterprise,

reward

their

efforts

over

our

country

ever
are

the

ahead.

and
unfolded as

being

In the

has

had

work,

since

our

the

Association

Los

The detailed record of
Associa¬
tion operations and
programs has
been made, known
to you through
various channels. Some of

challenging environment
we

year.

Angeles

you are

intensely interested

tain

these

others.

have

cer¬

than

programs

endeavored Mo

hold real promise

test.:
in the;

First, there is the area of func¬
tional competition with other in¬
stitutions. Economic growth will
mean

but
be

larger

the

financial

environment

in which most

one

system,

likely to

of the time

-intensity
work

should

the

con¬

the

sppply of savings. There will be
keen competition to obtain those
savings and to pur. them to work

serve

in loans and investments.
Banking
be
prepared to'meet this

must

each

passes.

future, or which embody a
challenge that will put us to the

vistas

new

in which

ex¬

are busier than
The scope of their
service is

broadening,

how¬

Association such

periencing. Banks

our.

operations

on
the major areas in which an
competition on all fronts.
Our
a? this can coil-" markets
will not be assured. This
tinue to perform with
vitality, and is a fact we should never forget.
foresight the essential function of
For example, today much of
the
helping our
banks -if to H.achieve emphasis in consumer credit
is oh
maximum effectiveness in service
instalment loans for automobiles
to the
public, while at the same and appliances, and "the
emphasis
time
rewarding < our
own
em- : in
the mortgage
market is On
ployees and stockholders.
\ home purchase. Will new

as in the past few years.. it should be a matter of pride to
expansion would not have bankers today that their institu¬
been possible if our business
tions are
sharing to an important
leaders and our people in general degree in the expansion and
de¬

genuine and

lie

Association.

banking which

meaningful guideposts for pro¬
jecting
into
the
future.
They
should help to focus our attention

banking.- Nevertheless,

and

economic
blue-; the demand for funds will
point of departure. The- tinue to press hard
against
and

for the

seem

detailed

as a

prog-/ basic forces at

are

have

direetion

country,

Such

years

♦An address by Mr. Cocke before
the
First General Session of the 83rd Annual
American
Bankers
Association
Conven¬
tion, Atlantic City, Sept. 24, 1957.

been

over

these

un->

been

have

toward certain of

ress

has

disappointments

expected in

expansion

served

year

one.

capital

did not believe

come.

units

over

for the future rather than
to. the
destruction of military conflict. It
has been a year of unprecedented

growth

these

there

world, even at the present
time, the efforts of men could and

vein

I would like to leave
you,
ever
with my observations

the

that

programs

Bankers

to
American;
report,
moreover,
that, Bankers Association will direct a *
through the cooperation and
goodly portion cf its energies toteamwork of the
members, -the helping you to anticipate what the
committees, the staff, and other future has in store. One
need not-

did not lead to wide¬

ago

this

constitute the work of the
various r units ; of
the
American

spread hostilities, and that, despite

forget all

memory

convention another,
busy year. It it is my earnest hope that
a source of much
pleasure for¬ years
to
come
the

Association
year,
we
are
thankful that the crisis over Suez

few of the major
developments in

review the events of the

past

friends

but shall

never

have done for

cherish

hospitable and

gracious. We shall
you

our coun¬

that

past

Believe in Growth

knowledge

problems

many

agement

Erie Cocke

nology and managerial talent; and (3) better government relations
across banking's view of fiscal
sanity and monetary stability.

Associa¬

new

the

monetary stability.

length to pinpoint conditions

which

less assured markets in the face of keener
competition with other non-banking
institutions in meeting new demands;
(2) staffing banks with modern tech¬

chapter

dhat

and

continue

aneaci; however, it is not my pur¬
pose
today to dwell upon the

turning
point of an¬

and

Retiring ABA President and recently appointed FDIC member's
perspective
our future dynamic
economy embodies such challenges to
banking as: (1)

meet today at

could

some

Bank, Atlanta, Georgia

the

pessi¬

mism.

economic

Vice Chairman of the Board and Executive
Committee Chairman,
The Fulton National

prosperity and depression, and
of optimism
and

Retiring: President, American Bankers Association

spanned periods of peace and war,

•

live

horizons

opened in the years to come?
dynamic*'
environment.' Our population is Will additions to homes to ac¬
growing, standards of consumption' commodate larger families account
are rising,
productive efficiency is for a growing share of the busi¬
increasing, new and better mate¬ ness? Will our consumer-credit'
rials are
being discovered, qnd departments find: new ways of
broad

truly

horizons of technology and' financing the education of a grow¬
are
constantly coming into" ing number of college students <as

science

Despite the eroding-influ¬ the babies of the early postwar
through committee eon- ence of
inflationary pressures, we' years grow to maturity?
tact, publications, legislative liai-'
have been able so far to achieve'
son, press reports, and conferences.
Operating Efficiency
new records of real
physical out- •
view.

serve you

Underwriter

Distributor • • Dealer

We want

to consider it your
these services as

you

privilege to

use

active and

interested members of
the Association.
As

reflect

ences

taking,
Securities of the United States

Government and its Instrumentalities

State, Municipal, Revenue and
Housing
Securities
and Common Stocks

the

upon

experi¬

this

under¬

programs

and

objectives outlined for the Amer¬
Bankers, Association,
and

upon
the environment in which
banking operates today, I cannot
help but feel that this is an
ap¬

occasion

project

our

thinking toward the future. All of
us in
banking know what we ac¬
complished in the past; most of us
have a pretty good
idea of what

Industrial, Public Utility and

Railroad Corporations

are-

accomplishing

have enough of

but

now;

given thought
hope to accomplish in
the future? Have we
really given
adequate attention to the direction

Bank Stocks

Casualty, Fire

the

upon

had

ican

propriate

Bonds, Preferred
of

have

to what

and Life Insurance

Company Stocks

which

our

heading, to
cial

Bankers' Acceptances

Securities of the International Bank for
Reconstruction and

institutions

and

whether

measurevup to the challenge

this

changing

economic

Canadian Bonds
of

thinking

about

the

-widespread principle
today. It underpins

business

the broad
programs of capital
pansion in

industry,

ex¬

transporta¬

tion, and trade. Without
planning

and

the

confidence

part

great

New York

Boston

not

future

leaders, the

our

country's

continue.

The

most

Cleveland

Chicago

and

can

Trams of

one

can

evaluate

policies, and

-•

much

arge

bank, and for city

institution.

-re¬

pro-

today. This holds true for

he small bank

San Francisco

rea¬

carefully
devised
astray; but I sub¬
mit that it is far more
risky to be
without a
forecast—without some
kind
of
target for the future
forecast

•ural

Philadelphia

It'is
forecasting is admittedly

against which
the operations,

Pittsburgh

the

business

risky business.

sonable

CORPORATION

challenge of

growth would
true that

FIRST BOSTON

to
the all-time Tecord.
there have been signs of

tions. Electronics hold
particular
promise in this respect. In the

should be

fore, to be

for the

well

trend

will

ward

Recently
soften

but there

months

the

down¬

clearing

ahead,

other, industries that have
tapped
the wonders of modern

to be broad agree¬

seems

pull^ however^

popular forecast is that

the

decade

ahead,
swings

intervening
downward,
will

much

the

bigger

—with

high

have the

against

give

than today
product of
$600-billion in

economy

terms of present
we

for

gross national

perhaps

over

allowing

upward and
forces of growth

unleashed

prices—provided

good

sense

guard

excesses.

keener,

will be

will

cess

businesses, and prod¬
replacing others. It

economy in which suc¬
be guaranteed, but

not

in which vision and hard work on
the part of progressive
manage¬
ment will be rewarded.
For banking this means a
bigger
job to be done; a larger number

financial

transactions;

people to be served in
and

neW ways

with

improved techniques; a
at balance sheets, with
larger footings and new assetliability relationships; a closer at¬
tention to costs; a realistic
ap¬
new

look

proach to management and other
personnel matters; a challenging

competitive
among

scale, and

which

will

markedly different
growth, and in which new

will

nancial

each bank to think and
plan ahead on a wider

areas

undergoing

industries,

banks

environment

and

prepared to adapt our own
operations to changing conditions.
But it will take

more months and
of hard work, careful plan¬
ning, and resourcefulness to keep
ahead of the needs of a

years

growing

economy.
As a result

the

work

the

ABA Bank

Management Commis¬
scientific developments
bank equipment manufactur¬

sion

and

ers,

well

are

automatic

check

the

of the

way

handling;

The

future will be

efficient, more accurate, and
costly. Some banks are al¬
ready moving ahead methodically

among

institutions;

and
as

to
as

take

advantage of automation
equipment bec-omes available.

Others
On

are

the

other

majority

planning stage.
hand,
the
vast

banks

are

marking

time,

mostly because they are
looking for guidance. Banks
should

steps

begin

now
to take basic
that they will be able to

take

advantage of automation, by
placing financial and other
documentary instruments on a
uniform basis,
developing prop¬
erly coordinated systems, and in¬
stalling actual equipment with
I proper
priorities
toward
avail¬
ability and use.

Governmental Relations
Third,

there is the matter
governmental relations. D u ri
this past year, good

„

of
n

progress has
-been made toward the
enactment
both
of a revised financial
code which
all fi¬
will modernize
banking laws.

en¬

larged responsibility regarding the
soundness of credit

shall have to

less

various geographic

ucts

economy, though,
in which the forces of
competition
will
become

rates of

technology,

bank check

will be

and

longer

mechanism;

science

and

change is likely to

For

just

upward

the

ment that any
be modest.

considered, there¬

sibility of

operating

ing in some of the business in¬ years ahead, the pressure / of a
dexes. Trained economic observers/ high volume of activity will tax
the existing facilities of the bank
are
divided
over
-whether
the

important

respon¬

very

More Competition

Systematic
future

The

there is - the area of
efficiency.
We
must
progress
in
the
adaptation
of
modern technology to bank
opera¬

en¬

Second,

unprecedented
stretch of prosperity, business Bc-r
tivity has been on a plateau close

Should Plan Ahead

level.

Unemployment is

low

vironment?

Development

Foreign Dollar Bonds

are

role in the finan¬

our

system,

shall

put.

factor ih

There

were

also

extensive

Continued

hear-

page 36

[Volume 1#6

Number 5678

(1447)

The Commercial and Financial Chronicle

/ '

t,u n

HARMONY of correspondent

The

.Harmony is important in any business
in teamwork between banks.

relationship—but especially so

;

banking

Service to

Correspondents

■j
r-n

It is the result of

working toward

real person-to-person

a common

understanding—both banks

goal. It shows itself in a smooth-running

and

Analyses of investment portfolios
Around-the-clock mail

pick-up

Quick collection of items

Why don't

you

talk to the people at Chase Manhattan?

Dealers in State and

Municipal Bonds

Execution of security

THE

Credit information

Chase Manhattan Bank

•

orders

Full foreign services

Safekeeping of securities
Many personal services*

HEAD OFFICE: 18 Pine Street, N.

Y. 15

Member federal Deposit Insurance Corporation

(1448)

The Commercial and Financial

Common Stocks
Three

Oct. 18,
1954, to be exact, I had the temer¬
ity to address the Trust Division
on
the subject of common stock
years

ago,

President of the United

After praising

you

tive funds,

may remem¬

ber the title of

that

inflation

discus¬

sion: "C

describes

o m-

was

explore the
for

reasons

the

great

swindle for which

cycle;

stocks

the

not

are

Mr.

cure,

of consolidation; denies

as one

Since inflation is
a

Benjamin Strong

ship as a permanent paid
investment fabric.

brought

that
of

for

we can con¬

society. The government,
example, may sell its bonds on

the

public assumption of the in¬
tegrity of the dollar, yet with the
private realization that deprecia¬
tion

the

will

power

of at least

well

does

that

have

with

part of his income

riches

of his capital. As inflation

continues,

simile, long-term prosperity of the United
I am trying only to
point out that States of America?
To me, the
the
weather, either climatic or challenge is this-—we, as fiducieconomic, cannot be counted on aries and investment managers,

dollar's
purchasing
deprive the investor

it;* destroys
It

economic

encourages

overbor-

rowing and overbuilding.
the

With this oversimplified

"Reassuring and Rewarding"

the

stocks in

"It Rains Unexpectedly"

moral

fiber of

Strong

urges

our

fundamentally

swindle, it weakens the

balance.

icy in the last

change

conserva¬

they should completely liquidate their equity positions.

50 years or so

general

common

today's business picture

growth prospects

change in fi¬
duciary in¬
vestment pol¬

—a

stocks in the portfolio of

common

bankers to exercise financial leadership with
courage and foresight despite minority position against the tide of
public opin¬
ion; and warns trust officers must fully believe in the country's long-term

Big
Change." My
intent

the record made by

trol the business

The

along. The resulting accelerated
price advances cause greater ef¬
forts to anticipate the
trend, and
the
inflationary pace turns into a
gallop.

States Trust Company of New York

prominent N. Y. banker indicts the concept of slow, beneficent

as a

Stocks—

mon

Challenge

By BENJAMIN STRONG*

investments.
Some

The Big

—

Chronicle'... Thursday, October 3, 1957

en¬

some

groups, including the
speculative elements. It im¬
poverishes other groups, including
all holders and beneficiaries of

most

recent years, the ownership
fixed incomes. Because of the de¬
portfolios of pension and in- of common stocks has been both to continue
indefinitely without roust have the wisdom to chart a
surance
funds,
institutional en- reassuring and rewarding. A fast- change. In my opinion, we have sound course of investment. We struction of economic balance, the
inflation must
dowments, and all types of fiduci- growing economy and a rising come no nearer to
eventually be fol¬
solving the ecoProduce policies that will lowed
by a period of drastic ad¬
stock market between
ary accounts.
1947 and nomic cycle than we have to con- bring
the greatest possible rejustment and unemployment. The
-Af
the middle of 1957 gave us a cli- trolling the amount or distribution wards to our beneficiaries, our
While recognizing
further the inflation
ii?
f® ♦
progresses,
inflation in this shift of invest¬ mate that was certainly stimulat- of the fall of rain. It is true that residuary interests, and our inthe more unbalanced becomes the
ing, as well as free of economic we have made some progress in vestment clients. We must be able
ment empim&As,
juein
emphasis, I ventured the
i
economy, the stronger the tempta¬
""J storms or even of sudden and flood-control and irrigation, but to sift through the many crossopinion
that
tne
emergence
oi
tion to inflate
bdef gqualls We must admit that we must remember that it
further, and the
still currents of varied and confusing
equities as a suitable m a u
r
more severe the
adjustment which
we
are
likejy to i00^ back on rains unexpectedly. True also, we opinion that bombard us on all
so-called
must follow.
:funds rests thoge years as a peri0d of rela- have learned to cushion many of sides. We must realize that some
Today we are in the midst of an
f
smooth sailing.
Now we the impacts and symptoms of the of these opinions are motivated by
inflation, l cited tnese tnree latner lively
inflation
which
may
accelerate
begJn tQ wQrry ag to whether or rise and fall of business
lunaameniai xactors.
swings; profit, some by political ambition, and have much
further to go, or
not these happy times will go on but we are
surely not in a com- some by devotion to statistical
First is the emergence of the
it may be that it is much closer to
forever without disagreeable inpletely new era that eliminates dogma, and many others by wishUnited States as the world s hardan
end than most of us believe.
terruptions, either long or short, the risks of temporary adjust- ful thinking and outright ignormoney financial center, with conWe see before us the
developing
ments in our economic position
ance.< We cannot possibly fulfill
sequent stability in the pattern of
conflict
Being interested in sailing as a either
between
the wage-pro¬
mjnor or maj0r.
' these responsibilities and produce
interest rates. While we have just sport, I cannot resist the temptapelled inflation that has become
T1
f
f 'h
nrpnflrpd
these results just by reiterating so
witnessed a rather substantial and lion to c-ompare the still
persistent and the Federal Re¬
Prevalent
such
comforting
statement
as
rapid change in the money mar- tranquility
serve's effort to keep credit ex¬
of spirit with the ?
JSSc? iX our ni l these:
ket, it should be pointed out that yachtsman who sails along in a shine, and we must lay
plans
pansion in line with, normal eco¬
believe- ,
th
iong.term
in a world harassed bv inflation
fair breeze with all sails set, but and direct our policies in such a
')e
iin
the^ long term nomic growth, an effort to avoid
the
United
States
is
still
the with total disregard of threatening fashion as to command public con- future of the U. S. A.
providing the funds for inflation.
"I won't sell America short."
cheapest place to borrow money, thunderheads on the horizon. If fidence under all circumstances.
As the investors of conservative
"We have a
our sailor-friend knows the danconstantly expand¬ funds, as
The second factor is the more
swi-t
A«representatives of insti¬
ger signs that precede a sudden
KesPons*bility °f Trust Officers ing economy."
tutions which are
mature and stable industrial cli¬
0

use

common

„

the

^servative

!!.!

<•

in which to invest in

mate

own¬

sail

ership.
The

element

the

function, due to closer
and

;more
which

super-

The passage of three years has
not in any way changed my views

this subject. I am glad to have
this opportunity to say again that
on

are

until

wjjf

then

be in

disturbance

blows

engaged in equity owner-

*An address
Division

by Mr. Strong: before the
at

sociation, Atlantic

the

83rd

City, N

Annual
J

Con.

Sept

23 '

1957.

itself

hits

out.

position to sail

many

warding
enced

reckless

from

emerge

to take him

days of smooth and resailing.
The
inexperi-

such

sailor

will

experience

with his boat damaged, as well as
his reputation as a yachtsman, and
so

blown to bits that

has nothing left with which to sail
on

the

calm

and

rewarding

waters that lay ahead for yachtsman

identified with

some

on; with his boat still seaworthy
and bjs sails intact.
His craft, in

his sails
Trust

the

self-regulation, thereby short, will be able

reducing the speculative hazards.

before

and

third

favorable equity market
vision

line-squall, he will take in

number one.

Specialists ia

We,

trust

officers, have

as-

sumed many and diverse problems
in our capacity as important hold^
ers

?,®r

'
s<?,
,f. ale
® U,Eh,
income
&0 ^own ln pui chasing

equities, in good times and
bad. These problems will tax our

judgment, knowledge, and experience to the utmost.
I am deeply
impressed by the responsibility
that rests

showing in
ers.

"We are in .? long-term infla-

our

must,

role

make

above

good

stockhold-

all,

justify

the confidence that the
public has

shown by entrusting to us

con-

1SSf'

thermore, these funds
the

accumulated

are

Fur-

not just
of the

■,

Such sentiments
we

can and will,
us to sleep as

let them, lull

surely and as pleasantly as
phenobarbital or a tranquilizer,

finance, and as responsible
citizens, we must exert all influ¬
possible in support of sound
and
credit
policies and

ence

money

against yielding to- the inflation¬
trend. For example, we can

ary

take every opportunity to support
the
Federal
Reserve's
presei

monetary policies.
Before

inflation,
fact

dismissing ttre subject of
should emphasize the

that the

great and final im¬

So rouch for generalities. To be pact of continual

stantly growing volume of funds more specific,
for investment management.

•

growth in population muninterrupted pros-

Sl,r?® „an
Penty-

sound

f°r

might examine

a moment the particular areas

of challenge that

common

stock

and

substantial

price inflation and currency de¬
preciation is violent, and usually
leads

sudden

deflation

and

ownership involves. The problem chaos. I do not share the views
prosperous. They now include, in of inflation is in the present scene of
many
authorities,
including
important measure, pension funds Perhaps the most basic of all to some of our
legislators, who be¬
that have in their care the finan- the
investor in common stocks, lieve that a gradual rise in the
cial future of hundreds of thou- This challenge has been met over
price level can go on forever
sands of men and women. As I the past 15 years to a
large extent
Continued on page 29
ventured to say three years
ago, simply by the acquisition of large
we as trust officers
are, with our proportions
of common stocks,
institutions, wrapped up closely particularly in the growth and
and irrevocably in the financial raw material categories.
In part
and economic fabric of our coun- because of the growth of the econwealth

try and its people. Our thinking
our judgments must be
broad-

°my and the improved character
of ihe equity market, this method
gauge; and our policies must re- °f meeting inflation has accomflect independent
thought,
and Pushed much of its purpose. Howmust be based on an
objective ap- ever, a fundamental difficulty has
proach
to
every
phase of the become apparent: inflation is inand

problem.
In

feel,

compatible

looking
agree

ahead,

premise —that

one

the

prospects for
growth of our Ameri-

over

the

long

term

Wealthy economy. It will

must, I
fundamental
we

dhe.st.r°y

sound

growth lor whlch We a11 hope,

,The experience of inflation in
can
economy can be regarded as recent years has brought a rather
a safe
long-term expectation. Any general belief in the inevitability
trust officer who does not believe of
rising prices.
Inflation
has
this should leave this room im- been surprisingly
widely accepted
mediately, pack his bag, and fly as necessary to a constantly growprosperous

home to start complete
liquidation
of
his
common
stock
position!
After all, the

C. J. DEVINE
48 Wall

Chicago

SfrMt, New York
Boston

Clavaland

•

Philadelphia

Cincinnati

•

CO.

HAnovor 2-2727
•

Washington

St. louls

•

inS economy. It ii my firm belief
that this concept of a slow, largely
only real justifica- beneficent inflation is wrong and
tion for
undertaking the risks in- cannot last.
volved in holding stocks at this
If the inflation does continue
by
point is the belief that over the
getting imbedded in popular psyyears they will give our accounts
chology
and
in
governmental
a share in the
growth and profit spending and
monetary policy, it
of
our
country's industrial and inevitably results
in
increasing
financial structure.
efforts by businesses and individ-

Foremost

reeources,

experience, facilities. Located

ior

tlun

century

di¬

rectly opporite U.S.Treatury.
Inquiries cordially Invited.

RIGGS

•

Pittsburgh

San Francisco

Beware

n,.

Cliches

So far I have not referred to the
title of this discussion: "Common

Stocks—The Big

uals to build and to buy ahead of
the anticipated price increases. It
results in the
ness

Challenge." What simply

acceptance by busi-

NATIONAL
of WASHINGTON.

excessive
as

wage increases
added costs to be passed

BANK
D. C

FOUNDED 1836
MEMBER

PffiERAt RE5EKVB SYSTEM

•

FEDERAL DEPOSIT INSURANCE
CCKE.

The Commercial and Financial Chronicle

Number 5678

Volume 186

the

largest financial institution

the bank with the
of

largest number

correspondents

nearing

a century

of service

)$
ix

BANK & TRUST CO.
LOUISVILLE

\
♦

Member Federal Deposit Insurance

Corporation

Federal Reserve System

Lee P.

Miller, President
% mM '/

1858-THE

SINCE

(<
;t.-\

w,.

•?:

v.ij.

•

n'F*i v;

v;iC

-r-*«■*■"» —»'

r *

BANKERS

BANK

The Commercial and Financial

<M50)

FDIC's Role in NatioiPs Bank

Economy

•

■

By IION. RAY M. GIDNEY*

Position

maintain their important
in

banks continue

National

at the end of

Currency Comptroller <Gidney renders

savings

►the

about

38%

the

total
of

islative

they

banks,

bank stock sales

new

growth of the F. D. I.c. fundus just about keeping

leg¬

offices, 47%
banking as¬
sets, and 54%

sets.
M.

Gidney

that
of

afforded and recommends hankers familiarize themselves with

Our
as¬

condition

1956

with

meas¬

additions

net

lion

Adequate capitalization of our
important. In the
10-year period, 1947-1956, national
banks completed new
capital sale
programs in existing banks which
added
$l,074-milJion to their
capital funds. At the end of 1956,

and other loan
were

bad

valuation

$833.5-million,

re¬

banking
national
tain

system
bank

considered

elements

small

risk

eon-

unwarranted

continues
relation

and

National
nual

e x p a n s

o n

and

take

care

capital

needs

by occasional sales of

stock,

reserves.

Bank

it may follow

new

restricted

dividend policy in order to retain

Division

the

83rd

the

large

proportion

Figures indicate that

An¬

Convention of the American Bankers

national

Association, Atlantic City, N. J., Sept. 23,
1.957.

loss

banks

earnings.

most of

prefer

our

middle-

of-the-road policy, with moderate

$792.7-mib*on,

banks

permit

all

maintain

transfers
until

based

CITY,

bad

from

JUNE

30,

for

asked

bad

coiling

...

debt
is

...

36,506,986.19
9,506,629.38

information

ceiling

needed

for

reliable

23,796,020.62

1.00

Total

..........

Capital Stock, Common
Surplus

$68,759,295.52
11,760,457.80

$83,519,753.32
750.000.00

1,750,000.00
3,531,546.03

Undivided Profits and Reserves
Total

studies

which

in number of

Capital Investment

and

Reserves

$ 6,031,546.03

that

have

Member Federal

rule,
only

clear

showing
advantage

the

have

been

years

member

Board, there have been five
where
assumed

deposit

liabilities

in full without

$89,551,299.35
Orval W.

Adams, Executive Vice President

Deposit Insurance Corporation

ceiving-assistance.
been six

our support of the
introduced at the in-

provision,
stance

indicate

that

the

American

Bankers

voting in the elec¬

tion of directors of national banks,

35%

On the proposed amendment

the Federal Deposit Insurance
Act which is included in section
23 of Title 111 °f the Proposed law
relative to bank mergers, the three
every bank which docs not"federal supervisory agencies have
a pension
plan should"con- continued in firm support of the
can

banks,

plan it needs,

afford, and should

promptly to put in effect the

were

sured deposits. Losses to uninsured

depositors in these

changes

our annual

two

Deposit Insurance Corporation was
was appointed receiver but where
local

capital

tributions

the

de-

recom-

was

made

raised,

which

con¬

permitted

the payment of depositors in full.
Iii one of these cases, the Home
National

Bank of Ellenville, New
York, the Federal Deposit Insur¬
ance
Corporation made a loan of
$462,000 to the receiver to make

.950

were

placed in the institution

local

interests, and the bank
removed
from ' receivership

and reopened. Both of these banks'
are

operating successfully at this

time.

Coverage Growth
With

the

generally

condition of
sions
ance

been

for

our

prosperous

banks, the

Federal

Deposit

occa¬

Insur¬

Corporation aid have not
important as to amounts in¬
However, the insurance

volved.

coverage afforded by the Corpora¬
tion is related to a very large total
of insured deposits; and it is good

the

but

the

posits

tially its present form will be

report

rel¬

small.. There have been
instances where the Federal

that'

embodied

legislation

only 0.79% of total de¬
insured banks and ap¬

proximately 1.44% of insured deContinued

accomplishment of great signifi-

page

cance for the good of the banking

system.

•

October,

discussion

cases were

atively

to know that the Federal Deposit
of keeping - authority
bank mergers in the super- Insurance Fund has now passed
visory agencies. There are so many $1.8 billion. That is a lot of money,

enactment of the Bill in substan-

together in Los Angeles
I reported on the

Federal

Principle

proposed
Act

the

over

good

Institutions

where

re¬

have

Deposit Insurance Corporation has
been appointed 'receiver and has
paid its statutory liability on inr

was

We continue

the

theseAssociation,- which would elimifor high "ate the mandatory requirement
foi* cumulative

the national

cases

There

re¬

"
scusses F. D. I. C.
Before concluding my remarks,

1 should like to say a few words
about the Federal Deposit Insur-.
ance". Corporation, on which, • as

Comptroller

the

Currency, T

as director and vice-chairI do not need to tell you that
the existence of the Federal DeP°sit Insurance Corporation and

serve
man.

ability and willingness to act
Promptly

•

meeting

its

obliga-

tions whenever an insured bank
is closed for liquidation do a world
were included in the Senate
Bill. -of g°od
in keeping the public
The Bill as passed
by the Senate mind free of apprehension as to
was
introduced in the House of the possible effect of banking difRepresentatives by Congressman ficulties.
When »the assistance of
Paul Brown of
Georgia, with only the
Federal Deposit Insurance
one
change .having to do with Corporation is made available do
branches of federal
savings and a banking institution in trouble,
loan associations.
I-strongly rec- ^ avoids, or mitigates the comoffice, all but

were

four

made

which

ommend that every national bank
give careful study to the material

this

subject

Annual Report

included

the

munity distress
otherwise occur.
Over

which

would

good many years, it was

and lo the actual" the practice of the Federal
Deposit
The Financial Institutions Insurance
Corporation, in most
Act of 1957.
You should become
.cases,
to provide for the taking
fully informed as to what will be over of a
failing insured bank by
accomplished by the enactment of another
banking institution, with
this legislation. We consider it an
protection of the depositors up to
excellent Bill, which will
simplify 100%. This method was
text

David O. McKay, President

unnecessary or

with
about
80%
of
the
total
salaried staff of all national
banks,
have pension
plans. We believe

Total

addi-

for

grade personnel is the matter of
pension plans.
We
have
made

our

LIABILITIES

furnish

days of keen competition

tailed

$89,551,299.35

Federal Deposit Insurance

important subject in

eluding in

101,436.43

have

nations of

bank,

figures

mendations which

Deposits

each

truly encouraging and re,suited in the passage
by the Senate
of "The Financial
Institutions Act
of 1957" on March 21. We are
in-

which they have asked for explaour views.

the

Robertson,

1.00

Total

legislation through the United
^States Senate, under the
guidance
ol'
Senator A. Willis

$65,566,240.30

Other Assets

condition,

a
general review of
the federal laws
governing financial institutions. The course
of this

87,600.00

Banking House
Furniture and Fixtures

Demand Deposits
Time Deposits

most r'eceat

our

was

Loans and Discounts
Stocks
.

ceiling Jis
should be

prospects for

$19^53,524.73

study of the problem.

Municipal Obligations
Total Liquid Assets

Of 1957"

1957

Less)

earnings

the

report

for

tional

last

the

create

reserves

Banking legislation is a very important subject at this time. When

RESOURCES,
Cash and Due From Banks
U. S. Securities (Par Value

debt

suitable

This

upon

"Financial

UTAH

ad-

are

seek

very

which

and

best plan it can devise.

OF SALT LAKE CITY

LAKE

than

consummated

helpful extent. As you know,
the House Banking and Currency
possible the assumption of the de¬
Committee held hearings during
posits in full by a newly chartered
the last part of the session over a
The
Ellenville
National
total of 19 days. We understand bank,
that hearings will" be resumed Bank, with $1,050,000 of new capi¬
tal funds raised within a few
days
when-*'Congress convenes in Janby citizens of the community. The
uary, 1958. You should obtain copy
Corporation has collected a sub4
of the hearings and testimony thus
stantial portion of this loan and
far given and familiarize youranticipates full ^collection of the
selves with the trend of opinion
balance.
In
the other case, the
reflected therein. We have enDel Rio National Bank of Del
Rio, :
deavored to give the Banking and
Texas, new capital funds of $750,Currency * Committee full . and
000 and a guaranty fund of
$1,020,frank discussion of all matters, in

bad debt

banks

dividual banks. In

First National Bank
SALT

believe

average loss experience of all banks over such a
period as is now allowed for in-

move

CONDITION

should

obsolete provisions which are tinduly restrictive. This, the new law,
if enacted, will accomplish to a

reasonable rate in relation to total

and what it
STATEMENT

management

the elimination of

formula not limited to the

group

office

need for

reserves.

sider what kind of

standards

banking laws advance to take:account of banking progress. This
should not mean liberalization to

history of the individual bank

This

and

be
the

address by Mr. Gidney before

that there is
reserve

call

*An

$100
capital

per

and

national

Comptroller's

reached.

5.43%

banking experi-

the

maintaining such
the

loans

assets,

bank

vanced,

1.75% of gross loans in the banks

and

erous

capital afforded by capital struc¬
ture

Total

banking house facilities, the individuaLfbank must weigh care¬
fully its dividend policy. It may
make its dividends relatively gen¬

taxes.

S431.7-million,

for bad debts of

provement

national

examiners

substantial

very

the

income
were

accumulates,

banks,
or the point of laxity; but it should
total, with gross mean broadening of the proviloans of $45.2-billion (92.27% of siohs of the laws and their adapta¬
ble
gross
loans of all national tion to conditions of the present
banks) were maintaining reserv3s and °* the future, combined with

2,721

58.4%

moderate; and with the continu¬
ing rising tendency of expenses
and the present-day need for im¬

eight months of ■ the
totaling $190-million. The
assets

paid

funds, was retained as addition to
capital. Obviously the margin of
earnings over expenses is very

aggre¬

first

before

bad

in contact. At the end of

come

1956,

operate.

errce

Pensions

is raised by a very large
proportion of bankers with whom

dividends, and 39 cents

1957, with sides of additional stock
year
volume

reserves,

$100 of assets or two-thirds
1%. From net profits, 28 cents

of $9,3-billion. Progress in
building capital has continued in

the

re¬

and

debts

per $100 of assets, or 3.89%
of
capital funds, was paid out in cash

serves

debt

Debt 'Reserves

The subject of reserves for

improve the laws under which

you

Bad

would

debts

gate total of capital funds and

st$png

of many that
should be the

Corporation J In the four

were

and

needed.
„

each

reserves

used

was

bad

dividends and sales of stock when

leaving net profits of $647.1-million, or 9.32% of capital funds.
This represented only 67 cents for

$8,472-mi]lion,
for

valuation

and

taxes

national banks' capital struc¬
to

year

leaving net profits of Sl,078.9-mil-

banks is always

reserves

the

$142.9-million

amount,
for

Assets and Earnings

amounted

for

1.28%

Aggregate net profits after
deducting excess of losses over
profits
and
recoveries
equaled
$l,221.8-m i 11 i o n. From this

serves

their

$l,497-million,

1955.

earning capacity.

ture

amount

pared

by the basic tests of com¬
petency of management, soundnes
of assets, capital
adequacy, and

and

1956,

equivalent to 1.39% of year-end
deposits of $107.5-billion, as com¬

ured

the

for

interesting information on
earnings and expenses. Net earn¬
ings from current operations for

maintaining themselves

excellent

Report

very

nation. With very few exceptions,
in

Annual

which will reach you soon, shows

The national

are

part

will

the

ceivership for the institution

high measure of service
the banking public and to the

they

cases

banks are, in
healthy,' aggressive and
growing institutions; and they are
to

loss

is the statu¬

which it is permis¬

rather

there

the

governing financial institutions.

general,
giving

operation

should

where

of commercial

Ray

the

exception

hearings and testimony dealing with proposed changes in the Federal laws

risk

upon

which

banking

the

However,; there is

and

with the growth

pace

;

such

made in "The Financial Institutions Act of 1957." Finds that

progress

of coverage

number

banking

reduce

belief

review of national banking activities

and problems ranging from earnings capacity and

mercial

had

Corporation, and that
tory basis

of the nation's

and

\J *

sible.

slightly 1 e s s
than one-third
c o m

"• v"?-.-';

Comptroller of the Currency

While
1956 they numbered

dual banking system.

our

''y

Chronicle... Thursday, October
3, 1957

designed

NATIONAL
of WASHINGTON.
FOUND!:!)

BANK
D. C.

1S36

MEMBER

FEDERAL RESERVE SYSTEM

•

FEDERAL DEPOSIT INSURANCE COif.

(1451)
Volume 186

Number 5678

New classroom units were

The Commercial and

Financial Chronicle

Architect, City of San Bernardino

: more

schools in

what San
The

authorities all across

solving this problem San
turned

%\
IX

booming school-age population
the nation a little out of breath. In

Key elements

hurry

•

85,000),
ll

provided urgently needed

i%\y.
m

quickly and at low cost.

classrooms

part

Bernardino, Calif, (population:

simplified construction that

;7vXv.x*xv';'*&:

in the construction are

panels, formed in large

galvanized steel sheets. They are
the framework of light structural steel,

from Bethlehem's Bethcon

secured to

easily and quickly
of which is

most

Wh atVmore,*the

their foundations

shifts in
San

supplied by Bethlehem's
buildings are portable.

and moved to new

population require it.
Bernardino used this same

school units last year,

elementary

Pacific Coast plants.

They can be lifted from

residential areas, should future

7
. . .,
;
construction for thirty-eight new

building a new
existing schools in the short

and followed it again this year,

school arid additions to ten

of three months. As a result, when their children trooped
school in September, 2100 pupils who would otherwise have

space

forced

"double-up," had desks

back
been

and classrooms all their own.

The steel

panels forming the sides

the
galvanized sheets.
base that it doesn't
is bent sharply back on itself.

and roofs of the new unit are among

hundreds of products being made from Bethcon
Bethcon zinc coating adheres so tightly to the steel

many

The

crack

peel off even when a

23
r«*J

Steel Building Division of The Calcor Corp., Los Angeles,

Bernardino did about it

struggle to keep up with the

has school

School District; contractors and developers of the panel construction used: Calcor

" -\

Bethcon sheet

(1452)

The Commercial and Financial
Chronic

Thursday, October 3, 1957

Understanding the Big Debate
There

some

quaint belief among
people in this country

our

that steel is the root of all

tion—past,

and

present

By ROGER M. BLOUGII*
And
Chairman of the Board, United States Steel
Corporation

infla¬

future—

and that if

could

Mr.

keep steel
prices from
going up, this

the

.would

man¬

Rorer M

get

ting annealing hit rvf witrVi

shouW

carefully

nurtured

and

from

"we
*s

letter from
who is

visible,

»»

system

and

production

country

whole

deal

can

either

activities,

with

their

wisely

—

individual

own

through their repre-

this

notice

slip
I

cause

amused
am

the
me

American is, in a sense, an expert
on the subject of inflation.
He is

problem

one

be-

end

vmir

than the disease?
It is

reverse

before
But

U°S

Of course
course,

SteeI

i^erhaps

tinv
tiny

mv
my

•

entirely possible, I

and

notice

Steel

1° cure
-cutting

suppose,

our economic headache

cure

Practlced by

8<>v-

whlch bas .been
ernments

nation

throughout several
f world

historv

lastra?sed^M'ices' wo7d like
can

and the

show

use

after

nation

thousand
So

years

nprhan!

ponder^

vnn

fh^ve

pas/few

this ab-

how

Japanese beetle."

Senator

Yes, Gentlemen, I'm afraid that
steel prices have been
blamed for
just about everything
during these
—TT~
An

~
the

address by Mr.
Blough before
Annual Convention of the
American
Bankers
Association, Atlantic City. N. J..
Sept. 25, 1957.
83rd

be done

But
is

mate
and

who has

O'Mahoney had

asked

to to" him what I thought
Congress and the Executive De-

partment should do

about

stopping
inflation. I replied that I hesitated
to

ever

£ ^

advise

Executive
Should

Conffre<?<?

the

^ongresS ?r
as

what

they

do.

successful

serving

municipalities

throughout the

nation!

(Arizona), Jersey City,

Washington Suburban Sanitary District, Regional Planning Commission of
#

Cuyahoga County (Cleveland), the
City of
Houston and the
City of Tacoma
all

use our

been

...

quarter century we have provided

governmental units with
in new

financing,

revenue

link

about

the

patrons,

broader

and

the

into

our

services and how

goods

which

New York

that

and

inflation is by
unique to America. It

major inflationary head¬
born

not

demand.

out of

They

ex¬

pri¬

are

Since

annual

our

reports
after year.

year

1940,

our

employment

costs per man-hour have
risen

average of a little more than
8% per year, compounded annual¬
ly.
At the same time, all our
other costs have risen even

rapidly;

And thus far, it has
less
severe
in
the

much

that

total costs per

our

man-hour—including
chased
and

goods

and

wages,

creased at
of almost

pur¬

services, taxes,

everything else

while,

—

have

ip-

average annual rate

9%, compounded. Mean¬

crease

The

•

current

annual

report

have been

able

in¬

output per man-hour by
only 2% to 3% a year—a figure,

insight

than

provide

upon

well

sound
on

local

and

this sub¬

community,

elected represen¬

our

study

showing
living in 13

other

principal nations of
during the past three
years; and in 12 of these countries
prices have gone up much farther
world

than

the

tatives in Washington.

United

would

Only

provide real leadership in inform¬
ing people upon this vital issue;

that, too, is why I have hesi¬
tantly ventured into the discus¬
sion of a subject upon which the
angels themselves might well have
feared to tread in these surround¬

ings.

tion

presents
national

our

that

double

welfare:

been

are

It is also

this

effective

which

than

general

those

abroad.

use

that

when

explanation of the present

inflation in

infla¬

threat

first

there

second,

there

the

still

danger

that—failing to
understand the problem
thorough¬
ly

—

some

may be

led to resort to

suicidal remedy.

Frankly, I
fact

that

leaders

many

seem

America, it is difficult

finding

which to vent
than

be
a

our

locating

inter¬

scapegoat upon
national wrath,

the

real

cause,

you can

productivity
equipment,

—

do to in¬

by putting

new

tive

between 2% and 3%

year?

Well, the answer is: you either
try within competitive limitations
to take in

will

you

dollars from your

customers

you

ing

dis-

mounting

And

appreciate

aversion

The

broke.

readily

natural-

the London

"Economist."

"Economist," of
cusing inflation

course,

was

So in order to

the

our

latter

our
rapidly
and
our
slowly
productivity,
prices
raised, according to

costs

improving

have

the

fitted

her

inflation.

better

than

the

shoe fits American

Said

the

"Economist":

have

been
Bureau

"There are, broadly, two kinds
of inflation. There is the inflation
that is caused by 'too much
money
chasing too few goods,' that is, by
excessive

But

age.

our

year

business, -for

flation

rate,

recover

all)

gener-

ally rise faster than output.
"In

practice, of

tinction

'too

cause

pressed

inflation

much

canont

too far: in each
is

case

general

cessive
cost

costs;

inflation

there

about

were

rise

could
not

enable

wages and

to be paid."

the
not

high

Each year

these

the

has

the

we are

confounds

the

hope to

attested

by the

our

face

considerably
facts, is the

continue

though,

ever-higher

the ever-higher prices

happily,

members of

senior

com¬

deeply,

these

approach that is taken by

money

still hop¬

pany. But what puzzles me
and

was

the simple facts

are

matter

duly audited reports of

our

haven't made it yet.

so-called

enough

the

—

this ground that inflation

But

Now
of

any

percentage

up by exces¬
pushed up by ex¬

and

fully

never—in

has cost us; and

ing.

money' and 'too much wages'

sales, been

the dis¬

course,

between

aver¬

has not

began in 1940

profit

that year.

(above

persistently and

Statistics,

since the present cycle of in¬

tion

wage costs

Labor

this

even

demands
at
existing
prices for the goods and resources
available; and there is the infla¬
when

about 5V2 % per year on the

offset the effects of inflation
upon

Cites the Economist

caused

bridge the widen¬

between

gap

England; but
Cinderella's slipper could hardly

consequence

disturbed by the
our influential

alternative!

sive demands

ly, and the best
crease

better one, perhaps, than
that which appeared not long ago

to find

prices, either pulled

Political Scapegoat

by nearly 9% annual¬

you can do is to reduce your costs

have

interesting to note in

connection

seek

danger of the disease itself;

greater

your

costs go up

better

the

members of this organization must

For

provement of about 2% annually.
So
what happens
when

being

now

our

to. combat inflation

system,

compares

enterprise

are

under

which

by installing
methods, by adding incen¬
plans, and by doing every¬
thing else in the book-—the best

that

appear

which

employed,

"Economist's"

I believe that the

States.

in Japan have they risen less.

others
to

seems

banking fraternity .con¬
stitutes a natural clearing house
for this type of
knowledge and
experience, and I know of no oc¬
cupational group which is better
to

the

methods

his

acquires

inflation

community

incidentally,

closely with the nation-wide im¬

presents

the rise in the cost of

the

ested in

5, N. Y.

And

marily of the wage and cost in¬
crease
type, as the figures pub¬

business,

istic powers.

man,

with

more-varied

could.

invite your inquiry.

Municipal Finance

...

And that

naturally

effects

whole

and

WAINWRIGHT & RAMSEY Inc.

steel

existing facilities.

are

government exercises wide social¬

behavior

dealings

financing, reorgani¬

municipality with underwriter

and investor

•

have

outfit about

all;
help increase the

is, that except in
lines, the ca¬
supply steel is greater

our

cess

abandoned

atomize

inti¬

of In his daily local banker,
course, is the

is the

planning and financial public relations.

70 Pine Street

have

States, under freedom of
enterprise, than it has been in
of the nations abroad where

•

tion upon the economic and financiai Ilvcs ot all his neighbors than

experienced counsel

existing debt structure, over-all financial

who

many

effects of the forces of infla-

*«» anyone else

uniquely complete

financial consulting services.

Cmimllnnla

weapon

world wide.

about

and

Suit River
Project

supply

the demand.

aches

United

That is why

To learn

the Bank for International Settle¬

knowledge of

ject within the

zation of

Cost-Push Inflation

provide
in the hands

present

community there

every

man

one

well-reasoned advice

ments

qualified

For almost

far

concerned,

own

clearly show,

means

national scale.

Role of the Local Banker

our economic throat; and
the deplorable fact of the matter

is 'hf'this is precisely the

what should

ex¬

the fact

lished

pre-

different economic groups in

■

the
weeks-a lite*cbar,6e that took place at the
being made the goat'for heanng? °f the Kefauver Cornheavy rains/ drought, Asiatic flu m
ee last montbsurd

are

very few product

pacity

to refashion our
national economy in the image of
the foreign
ideological
gods
at

sents itself to different businesses

shareholders

capitalism,

every

re¬

saying:

the

destroy our system of competitive

pos-

horizons,

their

their efforts

his

individual

those

Washington,

Yet within the limited
scope
own

powerful

"The

way

unions

constitutional freedoms.

«»haiA

note

gov¬

tinues long enough—will

different guises—that it may seem
Permanent way of life. They to stem from different sources,;
Due to the rise in the
price of are 8°ing to insist that something and may be met in different ways,
steel and increased
operating costs ' be done ab°ut it. But will it be And that is why each of us sees
it becomes
necessary for us to in¬ the right thing? Or will the cure, the problem in a different
setting
crease the rental of
our Safe De¬
perhaps, be even more deadly and has his own individual views

notice the
school teacher had written
a little

powers

they

render

malady,

that

us make no
mistake about
The American
people are not
going to tolerate rapid inflation as

this

our

today

the

understand this many-faceted

sentatives in

none,

So let

and

vast

Certainly an uninterrupted rise
in the cost of living — if it con¬

dismantle the

it.

"To Our Safe Deposit
Customers:

the -back

cost

are

problem, there is littly hope that

deadly.

spares

people into
the

siMc. It can eat away the security
w'lich this generation prizes so dealing with that
whose shrines they seem to wor¬
problem daily,
highly. It can even jeopardize our and has been for the better
part of ship.
cherished hopes for a peaceful the past seventeen
Yet the5fact is, of course, that
years. It is true,
world.
0f course, that the
the

trailer park in
Florida, and who
is feeling the
pinch of inflation. In
the envelope was a notice
which
he had just received
from
his
bank in St.
Petersburg, and which
read as follows:.
;

than

worse

unlace our nami*
unless
people

can

and

,1?ade progress in this

posit Boxes. This increase is
flected in the attached Bill."

the

experience in the

our

could do

and

insidious, in-

inescapable,
corrode

can

free

his pension in

...

It helps none; and it

retired school teach-

living

—

Yet, the other day, I received

present

business.

done

sur¬

Ar.w
And

sense, it is very much like
atomic radiation

I know it will be to
you.

the banking
surprising to me

was as

trade

the

T, with

wholesale

that

laughing matter.

L,kens Inflation to Radiation

predicatable.

classic example of this
poppycock should come
member

and demand is

traditional

are not amused"; for inflation

no
*

fraternity

ernment

some

steel

from

American

extension

of the members of a
Congressional investigating
committee
before which we
spent a number
of torrid days last
month in Wash-

kind

treat¬

That it would find
support among

But that

for

Now all of this seems to
square,

pro¬

the

clearly

itself

moment.

producing. We have reno-4
and 1 shudder to
Well,
retorted
the
Senator and
effectuating the cure of the vated, improved,
replaced and ex¬
0 the calumny lhat would Promptly, "You'd better begin be- malady.
Pinning the tail of infla¬ panded
our*
have been heaPed uPon
suf- cause you might get what
capacity.
Through
you do tion upon the hard-working inconstant reduction of controllable
??rlng head in Milwaukee " the not like if you don't!"
dustrial donkey may be great fun
costs,
and
by
careful
forward
®faves bad Wown their pennant
And that, of course, is
only too and an innocent sport—or it could, planning, we have
sought and
°a
s. .ls year*
true.
Unless
people
in
conceivably, be a carefully con¬ obtained ever-greater
every
production
But ridiculous as much of this branch of economic endeavor can trived maneuver designed to dupe

standable in the 1

was

argument
the in¬

strength
their
bargaining position

they have played

ington

the

supply

That

many

this

cause

which

leaders, as a diversiontactic is, of course, under-

ary

bankers to

little

presents

ploiting

pricing and concentration.

rinrtnnr

Tos^d

widely

the

inflation, and overwhelmingly the

increases to

wage

can

largest

leadership, cautions against recklessly blind political action,
implications implied in Congressional accusations of administered

and denies

labor

our

ment

by increasing productivity to catch

upon

explanation,

the guise in which

fection

hometn^fm0 .'P5st,fe™

Bioueh
*

•

menace

vide informative

ages,
be mi-

solved; and

invisible, but nevertheless deadly, radiation.

rise, followed by gearing future

wage

raculously
.

about

levels supportable by
rising productivity, and encouraging personal savings
to accommodate vast
capital investment needs. Calls

has

history

with unjustified

kind through¬
out the recorded

Blough likens inflation

Recommends ending this economic

problem,
tplagued

this

"There

just

which

"Economist" adds:

not

few—

all—of

subcommittee of

legislative

the
our

body in Wash-

Continued

page

Volume 186

Number 5678

(1453)

The Commercial and Financial Chronicle

Only STEEL can do so many jobs so well
i|5«|

i-M-yM

£$$

is*!

a:®:¥?M

'ty

•

'5-v v v<'s--.

/A'

S+

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X-

f {n

{A,$aAAVA«.?,&1

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>
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v,)'

'• -/a: 'J.

•••?:•:'• '

|
'•S <•

A'/Vaa''<>

£ '

plllil

year, to prepare Antarctic base sites for the
Geophysical Year, U. S. Navy Task Force 43 made an
complete circle around Antarctica. Lead vessel was the USS Glacier,

Operation Deep Freeze. Last

illWlP

'^MPISI

/;a

present International
almost

this startling picture,; the

powerful pride of the Navy's icebreaker fleet. In

her tough steel nose into the* desolate Atka Bay ice barrier so
that scientists and Navy men call reconnoiter and plant the American flag. '.

Glacier pokes

•

v
_

' k

•

High Line At Low Cost. These
transmission

The Finest Printing is
coated)

are

covered with

Done on Clay. High-gloss
a

(called enamelkeep

papers

thin coating of smooth, hard, lustrous clay to

printing inks from being absorbed into the paper fibers. That clay is mixed in
tanks like this one. Tanks are stainless steel because nothing else can withstand
the

time keep it pure and white. In
times as long as the previous non-

grinding action of the clay and at the same

fact, this stainless tank has
stainless tank.

lasted seven
>,

United

States

Steel

Supply

Union Supply Company •
.

were

Florida. By using

trimmed off the weight of each tower.

money

far

than the slight extra cost

steel. Another

Columbia-Geneva Steel
.

. .

Oil Well Supply

United States Steel Products

Divisions of United States Steel Corporation,

"USS" and MAN-TEN are registered

Pittsburgh

Universal Atlas Cement Company

trademarks.
7-2229-B

other Wednesday (10 p.m. Eastern time).

of the high strength

job well done with steel!

National Tube

United States Steel Export Company •

Watch the United States Steel Hour on TV every

;

The total

saving for four towers amounted to $7,200

United States Steel Homes

198 feet high—because they

underneath in Old Tampa Bay,

Gerrard Steel Strapping

are

special USS Man-Ten High Strength Steel, 6l/2 tons

American Steel & Wire and Cyclone Fence

Consolidated Western Steel
Tennessee Coal & Iron

towers

J» t 6, % M ».» M » t■ i

electrical

provide 100 feet of clearance for ships passing

American Bridge

uss

must

gigantic

;

' *.

The Commercial and Financial Chronicle...

(1454)

Thursday, October 3, 1957

Inseparable Twins
By DANIEL W. HOGAN, JR.*

Sleeping banks all over Amer¬
are waking tip!
Believe it or

President, Savings and Mortgage Division, American Bankers Association

not, these are the historic words of
the
United States Savings and
Loan

the

words,

straight

Pleased with savings banks' record competitive

from

the

head

the

creased mortgage

tion of today's
savings activi¬

ties of

We're

inclined
look
Daniel W. Hogan, Jr.

selves

and Mortgage

always

grew

Division in such

$2.6

half

about

billion—just
Commercial

much.

banks

really

of banks.

It's hard to believe that

day,

For

loan

associations

as¬

been

routine

savings
banks

have

run, is sweet music to the ears of
the Savings and Mortgage Divi¬

sion.

the

seems

stretch

almost

the

annual

begun

making

increased

and

that

years

lose

use

last,
Ethyl

interest

rates

are

the tide.

constantly

stand

this in the

cause

epoch,

Our Division has

the

All

soapbox.

interest

of bank

savings!
Now, out of a clear sky, this hard
work is beginning to pay off!
Record
The fact

Savings Rise

that,

far

nationwide

sav¬

couraging

just completed
on

savings

Certain

factors

survey

rates.

out!

banks

growth
that

banks

reporting

savings,

their

63%

For

that

instance, it's en¬
more
and more

allocating
a
bigger
chunk of their advertising budget
to savings promotion; and it's a
fact that savings advertising has
skyrocketed the last five years.
are

and

The

concerned, banks already
have chalked up a healthy $4.4
billion gain during the first half
of 1957, while savings and loan
are

365

days

But

year.

Back

INVESTMENTS

chairman. "'.His

its

United States investors

complete facilities for the pur¬
chase of high grade Canadian in¬
*

Our facilities include I

responsible

firm believer in the power of ad¬

Department with
up-to-date information on
major Canadian companies.

its

spend one-quarter of

total

savings

vertising

for

deposits

than

spent

would

only

twentieth

paid

the

idea

New

velop

•

The

exactly what has brought
about the welcome turning point
in bank savings? Two things!

in;

come

them."

has

one

steer

Even

though savings has
forgotten
deposit
all
these years, our Division has
kept
the

the banker posted on what's

going

and we're ready with advertis¬
ing and promotion tools galore,
on;

now

that he's turned

over

new

Relations

fur

has

Based

Council

been

mortgage
This

in¬

are

proved

time

after

time

the

that

rakes

the

lion's

flying

Inquiries from investort

Another

savings deposits

The

mortgage

business,

McLeod, Young, Weir

stake

and
it.

business

banks

have

proof, banks are
becoming more mortgage-minded
every day; their prestige as mort¬
gage lenders is definitely on the

reaching

ers,

and

million

and

Best
vast

stations

Friend"

potential

Vancouver

Winnipeg

London

Hamilton

Calgary

Kitchener

Sherbrooke

Windsor

Edmonton

New York

GOVERNMENT,
AND

MUNICIPAL

CORPORATION

to teach small

SECURITIES

So it boils down to the fact that

twins

that

the

ex¬

pert staff and the all-star commit¬
tees of the

Savings and Mortgage

its

the

But

tutions

we've

most

ambitious

and

successful

advertising cam¬
knockout, and it's still
selling like hot cakes.
paign is

the

Peter

looks

Penny
smart

3-D
on

ones

who

got

win

one!

Oscars!

its

the
of

year,

hands

major

Financial

Insti¬

The

1957.

Senate

the

Section

loan

which

would

of Federal

associations

rights"

re¬

savings

under

principle

the

which

the

mittee

present time, the Com¬

supporting bills

minate postal
ago,

outlived its usefulness.

keep

fingers

our

ter¬

savings, which, long

looks

Let's

crossed, but it
as
though this

very much
legislation is in the bag. If that's
the case, we've come a
long way

fining

our

ultimate goal

con¬

post

office activities excusively to the handling of mail.
The Committee

Investments,

competently
headed
by
Louis
Finger, has just completed the
year':| big project, which is a
comprehensive study of a 50-year
period

actual

experience.

corporate bond
based on the

was

voluminous treatise developed
the National
Research
to

compile.

that

its

Bureau

which

took

of Economic
many

years

The Committee hopes
will suppiy basic

study

investment

and desks.

Hollywood stars aren't the only
Penny

had

governs banks.,
-

colorful

has

already passed a pretty fine
Bill, and we are particularly proud

toward

most

This

action.

has

"States'

national scale, if banks were

A.'s

Act

strict branches

barely scratched the surface. Just
imagine the dramatic impact, on a

scene

Committee

divisions

courting savings

record.

pretty

full with two out of the five

and

Friend"; and

Paul Warner, is our watch¬
dog Committee. Washington, D. C.,

Larger National Campaign

that's

Best

man,

prospects at the point of sale.

and

Saver's

on Federal Leg¬
islation, under its veteran Chair¬

windows from coast to coast, and
colorful posters
in hundreds of

which
savings and mortgage, really are cutout,
inseparable twins! It's these lively, check counters
unpredictable

the

how

fry that "The Bank

Restrict "S" & "L" Branches

Already, banks in 3,000 com¬
munities, in every state of the
Union, are using this program—•

= r

The Committee

savers.

which are good for anni¬
versaries, openings, and commu¬
nity activities. Another new items

Twins

•

you'll have to admit it's
good place to begin.

Penny decals brighten bank

are

•

with demonstration"

over

"Saver's

commercials

audience

Peter

carry

loons,

Inseparable

the

;

Savings Forum, with its clinics,
exhibits, and annual dinner hit the
jack pot/The Forum fairly boiled

potential market of $50 mil¬
lion in new savings, Banks have
distributed 4,174,350 pieces of ad¬
vertising material, and 230 radio

The Advertising Department is
keeping its blue-ribbon program
fresh and
up-to-date by adding
new
phases right along, such as
the jaunty Peter Penny toy bal¬

WEST, TORONTO, CANADA

Ottawa

;

Last March, the National School

totals.

LIMITED

Investment Dealers Since 1921

throughout

enthusiastic chairman of this

banking.

readers

upswing; and statistics back up
yearly growth in bank mortgage

Company

see

Agnes Martin is the competent

have been used in local
newspap¬

big
big

school
can

rousing theme
that "The Bank Is the Saver's missionary committee, whose zeal
Friend," it's a complete ad¬ has reached a new high for the 50
vertising campaign; and| it was years that our division has been
designed for use of the individual headquarters for school savings

that's our, goal!

too.

So you

Best

has gone into mortgage loans.

invited.

are

deposits,

total of

handle

now

will
mushrqom
country.
'
.

and

push¬
ing the "Saver's Friend" campaign
in
10,000 communities. Anyway,

savings

Sav¬

yourself that this program is
beginning to click, and soon it

ever

increase in bank

Canada.

which

savings accounts.

de¬

little known fact is that during the
last
10 years, almost the entire

across

School

song

new

that

Committee

for

the

bank lobbies

and

The

banks

ago,

teamed

national advertising cam¬
that's in a class by itself.

since.

rejuvenated attitude

some

•

schools in 39 states have

paign

savings dollar to the individual
bank, coaxing and coaching every
step of the way, which proves
once again that
"ships don't just

ques¬

School Savings Promotion

York

this committee
up with the
Department and the

year
men

Public

sav¬

Just

the

How true!

Advertising

ings deposits.

First, it's

one-

total

$177 million on! deposit in the 684

and

typical
of its

answers

ings Banking reports that a record
five million school kids in 13,400

Just

this

because it does take sav¬
ings dollars to make* mortgage
loans. To turn the tables, it's been

our

homespun

How true!

1% „of
ad¬

bank that goes after the mortgage
business in a big way is the bank

Private wire service

Quebec

Un¬

list for many years. A good many

twist,

mail.

Montreal

out

come

year.

committee

greater volume

separable twins!

Correspondence Depart¬
ment to deal in securities
by

50 KING STREET

again this

iipes," which quotes • him as
spying, "If.you have money in the
bank, you need not grow old."

savings,

new

bank will build

Savings

Personal

the

for

columns

2Vz% interest

pays

will

leaf.

A Research

offices

savings business.

tions of food, clothing, and shelter,
has been on A. B. A.'s best-seller

marily to
terest, while 33% give full credit Pinkham could
only read Walter
to promotion.
Personally, I'm a
idgeon's recent testimonial in the

been

vestments.

the

farsighted bankers can tell you
appetizing from experience that this economy
theme that "There's Nothing Quite "give-away" will win friends and
Like Money in the Bank." If Lydia: influence people.
is

growth was due pri¬
increased rate of ; in¬

CANADIAN

committee

lication
on
"Personal
Money
Management." This booklet, with

Peter

perhaps

it's

that's putting banks back on
map

the
adroit
chairmanship of
George Levine, this committee is
responsible for our reliable pub¬

•

We offer

elaborate

Exhibition

of mothballs

of mind on the part of bankers.
1956, 23% of the com¬
It's their consciousness that de¬
mercial
banks were paying
1%
bank at the local level/ which is,
interest, 52% were paying 2%, and posits are now at a premium and by the way, where advertising
their conclusion that the savings
13% were paying 2V2%deposit is their land of oppor¬ jaays the biggest dividends.
associations were a
But our
1957
poor
"alsoSavings Survey
This kit includes newspaper ads,
ran," with an increase of only makes it plain that a wave of tunity. It's a newborn eagerness
statement stuff ers, give-aways,
to hit the sawdust trail!
higher interest rates has swept
posters, radio and TV commer¬
*An address by Mr. Hogan before the
the country and has left in its
Second, it's the fight that the
Division's
Annual Meeting
at
the 83rd
cials, decals, balloons;
in fact,
wake some
Annual
astounding statistics Savings and Mortgage Division
A.
B.
A.
Convention, Atlantic
everything. A. B. A.'s comic-book
kas waged for years and years and
on the more competitive position
City, Sept. 23, 1957.
hero,
Peter
Penny
himself, is
years to keep the savings torch
cavorting throughout. *
burning. We've sv^t^maticn71v
Six
thousand newspaper mats
propagandized the value of the

ings

added

the

Money Management has

Committee

house

believe

ingredients that have turned

geological
our
Division has burned
midnight oil, worked its fin¬
gers to
the bone, and stood up
a

the

all

whale of
vertising. Consequently, I'll stick
in
their
savings
my neck out and say this much:
Stepped-up advertising if a bank that

pick-up.

For

the

The

Savings and
Mortgage Development, for ex¬
ample, handles sales,, advertising,
and public relations. Louis Lundborg is the Committee's power¬

Advertising
Of

age,

sweepstakes.

gas; and it's
a
difference

the

are

coon's

banks have
played second fiddle to savings
and
loan
associations, and it's

sociations, despite higher return to
the customer, are, in the League's
own
words, "doing all right, but
banks are setting the world on
fire." This admission, that savings
and

front-page news in any

man's newspaper!

its

the

they get the job done!
■-

Credits Interest Rate and

This is

the

savings situation as it stacks
today,
reluctantly swallows
pride and comes clean. Their

visit

Atlantic

sade

Division wrestle with, 24 hours a

43% of the reporting banks upned
their rates in 1956 and that 56%

glasses; but quite often we come
getting the truth, the naked rang the bell for savings during
the six-month period, with a re¬ are paying a higher rate in 1957.
truth, from the opposition camp.
But it's true!
Sometimes the truth hurts; not so sounding gain, almost as big as the
in this case. As a matter of fact, entire gain for 1955 and 1956.
nearer

have

you

der

through

in sizing

our¬

rose-colored

the U. S. League,

hope

Hall, here
City. While you're
over
there, I'm sure you'll want
to join A. B. A.'s nationwide cru¬

greatly in¬

study, and stepped-up national advertising campaign.

Advertising As¬

display of "Saver's Friend" mate¬

housing, automation, investments

Mail

incentive

hand in hand with its inseparable twin,

areas

cess,

Mr. Hogan reviews the ramified, increased activities of the Savings

savings.

our na¬

tion's banks.

business which

that
cam¬

Direct

rial

welcomed turn in savings to bankers' rejuvenated attitude and to

regenera¬

say

Since nothing succeeds like suc¬

growth to increased interest rates, and ascribes

they picture
the

bankers credit savings

most

"Saver's Friend"

A.'s

sociation.

in attracting deposits,

success

Oklahoma banker singles out the importance of savings advertising, notes that

giant's mouth,
hit the nail

paign got it, by winning a coveted
top award in the 1957 Contest of

President, City National Bank and Trust Company, Oklahoma City, Oklahoma

League.

These

accurate

ica

principles and tangible
which will help in¬
vestment officers solve knotty in-

information

Continued

page

Volume 186

Number 5678

The Commercial and Financial Chronicle '
-

Since 1940, we

(1455)

worth of new refining equipment
modern duels required by today's and tomorrow's cars

have added $140,000,000

needed to make the

You could drive a 1957 car on

1940 gasoline, but

you'd sure be breathing everybody's dust and payr
ing some heavy repair bills.
' *r'
That's the reason Pure Oil has been researching,
testing and rebuilding to provide

the increasingly
for each new

complex fuels and lubricants needed
development in engine design.
Since 1940, we've put

$140,000,000 into our four
improvements in your

in 1940.

■

Despite all this, pure scientists, production and
it as ever, because the
cars of tomorrow are going to demand still better

V;;

refining experts are as hard at
:
•

fuels and lubricants.
.

- <

you see

built bigger: our refineries
turning out 6,854,564 gallons of oil prod-

today are

the "Be sure with PURE"

refineries to keep ahead of

engine. And we've also

the

pure

oil company,

They'll be ready and waiting for you

...

wherever

sign.

35 East Wacker Drive,

Chicago 1, Illinois.

BE SURE
J

WITH !

PURE

(1456)

The Commercial and Financial Chronicle

United
I

British Colonial

while

years

Kingdom Policies and the U. S. A.

unashamed advocate, of

am an

RIGHT HONORABLE

PETER

THORNEYCROFT*

again go

policy.

In recent
peoples have

other

Chancellor of

the

tacle

independence, the

While

British

spec¬

British

Com¬

monwealth
and

has

been

dif¬
We

have

to these

much

Reviews Britain's encouraging progress

—

d emocratic

life;

way of

international

much

than

the free world.
G. E. P.

plus

Thorneycroft

has

stages they may make mistakes.
They will not be alone in the

course,

port.

in Britain

Britain.

lenge.

best

can

face

also

describe

our

failure

face

1948

chal¬

Britain

First then let
trader.

as a

We have few

coal.

But

ber

small island.

the

whole

output of

our

home

and

share of national in-

from 8%

firsts

gas

1948 to 10%

In tech-

year.
we
our

turbine

car

f,on*

Let

have

a num-

credit:
in

the

1950, the

here and now that
you in America helped us in this
task of postwar reconstruction. We
thank

world.

say

for it.

you

factor in

live,

was

vital

progress must be

tion and
cannot

trade.

our

contrive to

sell

Unless

lot

buy the food with which

of yours, and

last year

eallv all
in

live or the rawr materials with
which to keep our factories
going.
Our national income is
only 10%

development. But, of
a

nation's

based firmly on
the efforts of her people. Practi-

we can

abroad,

our

course, in the last resort

must, by our produc¬

our

domestic investment

the United

Kingdom has been

financed oui of

MtioH.

our own resources,

are

much

you

one

would

say

our

role

international

Sterling is widely held
throughout the world. It is used

finance

large

proportion,

probably anything up to half, of
international trade and payments,
It is largely convertible into other
countries'currencies. As
We

must

expect

banker

meet

with-

drawals when

they come. The bulk
0f our sterling liabilities are
firmly
held by Sterling Area countries
and

treated

normal

the

cause

it remains

ticularly

impressive figures.

wage

vital position
Trade and our

which Klvas

true

that money,

ac¬

counts, which include not only
physical trade—figures for \vh»ch
we publish
montlVly— but all the
services, etc., which we renderknown for this
p.opose as ''invis¬
ible"— are. therefor*, one of the

things

which

British

any

Chancellor of the
Exchequer must
These I watch at the mo¬

watch.
ment

with

what

you

earned

call

ment

was

a
a

fiscal

current

$600 million

That

satisfaction.

some

account around

1957,

external

nc-

£200 million, say

than

spent.
achieve¬

pretty solid
period which covered

tial burdens: in particular we are
still sustaining our fair share in

defense—perhaps rather
fair share.
of

relation
dono

our

almost

national

our
as

than

This year we spent

$4 billion, one-third of
—9%

our

wealth
much

budget

income.

we
vou

have
and

1
you

us a

want to say

about

investor.

our

role

finance

their

development.

In doing
course, enforce a claim

Sept.

not

money, if it is not
is certainly the neces-

food o£

inffaUon.

any

economic
so

they, of

the

on our re-

past

year

cially heavily
because it is

sterling precisely
widely used inter-

on
a

is,

>)0l 80 ,,ul(.h

trader

therefore,
of action,

four

announced

forms

will, ob-

relevant to our need to earn
a surplus on our external
trading
account. Let me
giv*.you one figto start with.
Over the last
few years, our net long-term
capital outflow has amounted to om
ure

year;

difficulties

between

one-third

the levels reached this

and

Fourth,
rate,

The

year.

Third,

reserves.

increase

the

bring

this?

m.p.h.

while

PmblVms.

25,

1957.

changed in the last 2a years. Between the wars the problem was
that of unemployment, of unused
resources^ Qf the absence .of tech-

tional

can
see
that in relation
to our
wealth this represents a
major ef-

fort. Some may say that we should
cut this investment because
it is

beyond

our resources.

niques
PumP

The

worm

to build
in credit.

We look at

indeed

T'fhhit
think,
I

nf
of

toW°t
interest
•

?
that

Sterling

TI^H«,°TinaJ^i;aS1«7,e/r0m !t!e

Pnt /om
States, and 10% from the
International Bank.
In addition

not

include

founded

the

money

and

upon,

supply.

remedv

value

indeed

does
not

control of the
So long as it is

gov-

prepared to see the
produced to
spiral of costs,

necessary finance
„,ateh the upward

Canbv

and

operation at the Hotel Plaza. This
office, which was first opened
Mr. Watson as its manager
in 1916, will be discontinued after

Sept. 27.
Mr. Canby, a Philadelphian, is
graduate of Williams College in
Williamstown, Mass. He served in
the
investment
counsel
depart¬
ment of Moody's before joining E.
a

F. Hutton in 1945.

veteran

the

securities

joined the
was

his

over

field,

company

years in
Mr. Pease
in 1946. He

born in Canada and received
education

Wellington Col¬

lege in England.

against

this

the

back-

Watson

member

senior

regarded
of

the

nation's

stock

brokerage fraternity.
Al¬
a
native „of Canada, he
spent most of his life in New

£?ound that I rfpeated on Sept 24 though
8 ouJ?d T .l. 1 repeated on oept. zi
York's

as a

™en ine margins,

t° follow. In this world, however,
and particularly this world of in-

ternational finance,

we are

us much dependent upon

one

an-

United States of America. In the
^ve years since 1952, the United
States had a surplus on visible
trade account of around $14 billion. The important noint is that

ibis surplus was offset by your
government's expenditure abroad,
private capital investment and aid.

°f

Wa* an

f°VThe nL 1?
months

all

montns' an or us have observed
nave observed
us

with some an*iety

Ibis outflow.

I.M.F. meeting, I said
n

was

t00 short

starting
was
i

F. L. L. Jones Joins

First Boston

Corp.

F. L. Lee Jones, formerly man¬
ager of railroad bond investments
at

Metropolitan
Life
Company, has joined

Insurance

The

First

Boston

Corporation, 15 Broad St.,
City, as Assistant VicePresident, it has been announced
by James Coggeshall, Jr., Presi¬
New York

dent. He will head the rail divis¬
ion of the investment research de-»

partment.
Mr.

Jones

has

been

associated

with

Metropolitan Life Insurance
Company for the past 26 years.

reversal of

Joins Peters, Writer
(Special to The Financial Chronicle)

that while

time to form

» was too short a time to form a
3"dgment, I felt bound, because of
vital importance to the world,
to draw attention to it.

district,

President.

speech at the

financial

young apprentice in the Bank

of Montreal where his father

all of

other. Above all. the world is
much dependent uoon the financial. alld commercial policies of the

for

have plaved our,^ inflation will
continue and prices
institutions as will go up."

proper part in such

steadHy rising

generally believed that the
ernment is

decline

demand or
So much then for what we have
the postwar done in the United Kingdom, and
these problems^or the policies which we propose

can

and

Messrs.

with

Mr.

-v" UiS' Prices which go with it which
since the

end of the war. 7°%
of the external capital
invested in the

siT.

"There
inflation

present

devoted to the development of
oil and other raw
materials which

take

e^:n^s *^

orej&ot the only -country in the
which hiur inflationary

national

represents 1% of our
income. 1% of vour naincome is $4 billion. You

seek tn

,,non

mvestment

Pease direct the investment firm's

do noj_ prOp0se

™{yth® < ^g^n^ain
*

wefcitt

brokerage

—

T}le cllJc!?? P°*nt» however,

concept"

announced.

development

our

"new

office which opens at 650 Madison

Avenue, New York City, on Sept.
30. Walter Watson, 93, will con¬
tinue as honorary manager, it was

Bank

^ Putt t nlS iil th
T or this purpose, as well h„
dnr +L r-,ili rf hut
f for that H twMmce, we need .the levels of industrial activUy
0 tak® Wa necessary measures at Ln.e
^els_ °t
home to, deal with inflation.

It is
including foreign

well.

managers of E. F. Hutton & Com¬

pany's

which

p°t!cy, ?l oeonl^
c1SUI0 1,aillf P«

to expand the already substantial
Surplus m current external ac-

William M. Canby III and Fred¬
were named as co-

corresponds to your
rate, from 5 to 7%.
combination of these meas-

financial policy.

erick F. Pease

re-discount

"l a

our gold and
We are resolved

over¬

Co.-Mgr$. of New Office

the

<(,ld the size of

world's

E. F. Hulfon Names

one-

™V"'e TT* r2und thisA
1
believe that to be a prudent deci-

need to

Together

the

strict limit to be placed

ain

and

policy

Four Forms of Action
First,

of the

most

nomic

means simply
that we have been traveling at

build up both confidence in ster-

serve,

$500 and $600 million

on current account.

most

true of much else

Jo a standstill. It

conduct

is to make money more expensive and more difficult to get.

arise

b^t

(with the Common¬
Empire), stand with
partners at the apex of

°f government to make plain that
seas
investment, most of the
it will not be a party to under- world's
international banking. The
writing these inflationary forces,
statistics perhaps do not matter
Whether it is what you call a "de- very much in
themselves; the es¬
mand-pull" or a "cost-push" in- sential
point is that the free world
flation, we must be determined
would not survive unless we both
n°t to provide the extra money
remain
strong and continue to
which alone will sustain it. I,
work together. That is true of eco¬

It will not

problems, therefore,

an. overseas

you

ures

national currency.

we,

world economic affairs.

be-

in the sterling holdings of nonsterling countries. More recently
there has been speculation on the
exchanges which has fallen espe-

progress.

and

new

cause,

holding of bank advances for
the next 12 months at the average
have also had to meet reductionslevel
of
the
past 12 months,
Over

sources.

something to

Now

half of all fixed investment, to be
held for the next two years within

Wtlicw*

Overseas Investor

now

United
Tin,ted

•An address by Mr.
Thorneycroft
fore the 83»-d Annual Convention of the
American Bankers
Association, Atlantic

City, N. J.,

and

danger of this

real

wealth

government current expendilure.
Second, investment under
the control of government, in Brit-

world, most of
it in another
way.
We feel that have been reversed.
For most
And what about the future? It this investment is essential
not
countries the problem has not
is, of course, very difficult to fore¬ only to our own future
prosperity been that of unemployment, but
cast the future. For
but to the
my part I am
prosperity and welfare of securing and maintaining sound
of the free world. ' We
a politician rather than a
certainly money—money about which peoprophet,
yet we have in our Administra¬ cannot increase our effort in this P*e can be confident because
they
tion, as you have in yours, the l'ield, but we intend to do all we know their incomes and their savcan
to maintain it.
expert crystal gazers.
Why is this *n2s will retain their value. BeStrange
though it may seem, they are often investment so important? It flows fore I left England, I made a statemuch nearer to the mark than
to all parts of the free
one
world: most ment about my government's nolmight suppose they would be. The of it goes to the Commonwealth
icy upon the problem of inflation,
both to the
trends in our
independent countries 1 should like to say a few words
economy indicate to
them even better figures in fiscal and,.of course, to the
dependent about that policy now. The key
1958. We are achieving them while countries for which we
have a to
was contained in the followstill carrying some pretty
substan¬ special responsibility: and rpuch in2 extract from what I said:
the events of Suez.

our

sense

your

was

danger has been averted.

par-

cover
fluctuations In
their balance of payments. Some
Gf these
countries, however, held

italJhB.ii

in world

trading

basic

slipping back

after the last war, but with
your
help and our own efforts that

say what is
Nevertheless,

what.

They in¬

our

trade.

At times it has

we were

absolute

some

licve profoundly that it is the duty
trade,

currency

reserves

witnessing

controversial

and

word

one

did. These

dicate

population

your

There

price spiral, it is always difficult

(he

basis

proportionate to national income
imported 8 times and exported
as

up, and moved
the almost stag¬

and your wealth.

recent

5 times

caught

you

ahead with

looked

When

are,

1952, and last balances in excess of these normal
the first nuclear power
sta-.requirements, and draw them

And we have a skilled and
expe¬
rienced mercantile
community. We
as

century

The rest

In the next half

gering growth of

down

year

materials except
have 50 million peo¬

over

the

first jet air liner in

ple and a highly organized and
efficient industry. We also have a
large merchant fleet, operating ef¬

ficiently

Between

success.

1956

Banker.

export

in 1953, 12% last
nological progress

banker.

first
are a

about

increased

come rose

look at Britain

ex-

today

our

Thirdly,

our

investment

abroad

raw

and

total

Trader

had, of

by two-fifths
—engineering output up by half;

attitude

international

war we

two-thirds

but

Bank.

International Banker

capacity for

spare

lost
Yet

factories

by saying something of
our three
roles; first as a trader,
second as an overseas investor, and
as

trade is double the prewar
figure
volume. That is a
story not of

towards it

third

felt about

concern

in fact, the second largest investor
in that Bank, and we support to
the lull the very important work
which it is doing under the leadership of Mr. Black.

not alone in them.

are

markets.

tell you something
economic scene as it ap¬

difficulties

far behind.

well

investor, and

overseas

sary

During the last

from

pears

1.1

the International

Prade

deeply proud.
the

U.S.A. Helped Double Prewar

doing so. In our lifetime
they will play their part in the
free community of nations.
It is
we

trading sunbeen
secured by

not

world in

something of which

else

anyone

Our

shirking our defense effort, but in
spite of it.
V

It may be that in their early

Now let

trader,

ing, and banking nation.

only relatively to

in administra¬

are

the old days, in the century
we had an
uncontested
pre-eminence as a trading, invest¬

reversal of U. S. gold outflow.

Parliamentary
procedures; a
judicial sys¬
tem;
a civil
service; skill
tion.

banker, and concludes by pointing out

knowledge

problem.

account

tend

before 1914

were

policy, should also help end Britain's perennial capital

new

given

nations

head describes his country's recent fourfold anti-inflation

treasury

which

policy, and states it is preferable to subject industrial levels of activity to a
strain, even if painful, than to lower the value of sterling. Adds that this

Empire

fer ent.

problems face us,
them is a strength
perhaps to forget.

many

underlying

the

the points which I

over

made then.

Exchequer, London, England

lost their

Thursday, October 3, 1957

...

I need not

DENVER, Colo.—Robert J. Paul
joined the staff of Peters,
&
Christensen, Inc., 724
17th Street. He was
formerly with
Cruttenden, Podesta & Co.

has

Writer

The Commercial and Financial

Volume 186

Number 5678

Continued

Chronicle

from page 20

(1457)

and

1958

utmost to

1960, we should do our
see that the selection of

administrators

Common Slocks

made,
nomic

The Big
without

impairing

the

health of the nation.

economic

In order to

the
excesses
of overexpansion and unwarranted debtcreation, we need periods of ad¬
justment and settlement.

prevent

1 Today
that

we may

have some indication
be faced with such a

period of consolidation. We need
to
appraise the implications of
such factors as the rapid increase
outstanding credit of all types
—short-term and long, public and
in

producers'

private,
ers'.

certain

try.

all

see

current

Cost

tinized by

and
weak

consum¬
spots in

indusr

aspects of

levels are being scru¬
purchasers. The buying

public may be in the process of
deciding to wait for better oppor¬
tunities,
after years
of
rising'
prices,
;

We must remember that if the

whole business and financial com¬

these

economic

adjust¬

system

legislators

greatest possible
Our free

requires:

the many

the

issues that influence
country's economic life. The

Egan Director of
First California;

is role

eco¬

under¬

standing, appreciation, and devo¬
tion by our public
authorities.
Otherwise, its vitality soon dis¬

Challenge

of banks or trust companies
important owners of our coun¬
try's industry must be active and

not

passive.
Here
lies, in my
opinion, a final challenge in our
ownership position—will we take
our
full
part
in
steering
the

Appoint New V.-Ps.

strong legal

300 Montgom¬
ery

E xecutive

Vice

would

relatively

pain¬

hope to be numbered

Presi

dent and Sales

'Manager, has

Halsey, Stuart Group
Offer G.&Q. Ry.Gifs.

had

hoped to summarize my
It is safe to say that the experi¬ thoughts today without resorting
again to thb nautical metaphors
ence of the past 10 or 12 years has
Halsey, Stuart & Co. Inc. and
vastly increased the standing and upon which I have leaned so
associates
on
Sept.
27
offered
prestige of the corporate fiduciary heavily. However, having trans¬
throughout the country. I doubt formed you all into mariners dur¬ $4,500,000 of Chesapeake & Ohio
4%% equipment trust; cer¬
if any similar period in our finan¬ ing the past Hour, I have now no Ky.
cial
history
nas
brougnt more choice but to remain in character. tificates maturing annually June
The
challenging opportunities to us as
(1) There are clouds on the 1, 1958 to 1972, inclusive.
trust institutions than have these horizon
today, which were not certificates, third instalment of an
issue
not
exceeding
$20,700,000
It remains to
years since the Second World War. discernible before.
We have, I feel, gone a long way be seen whether or not they con¬ and priced to yield from 4.25%
in throwing off the stigma that tain winds and rain. In any case, to 4.40%, according to maturity,
awarded
to
the
banking
has dogged us for so long—best some of us have already taken in were
group on Sept. 26 on a bid of
illustrated by
the oft-heard re¬ a little sail.
;

an¬

that

John F. Egan,

cated.

Street,

nounces

been, appoint¬
director

the

com¬

pany.

Earl

Smith,

the

ger

mana¬

Fresno1 office,
John

Egan

has

been

elected

Vice-

President.

William E. Pooley and
E. Strei have been ap¬

William

pointed
be

Vice-Presidents and
of

co-managers

will

Oakland

the

division.

mark, "All they do is buy Govern¬
ment

bonds."

;

....

change in public
attitude- toward
corporate fidu¬
The

greatest

(2)
mon

Nonetheless, we are in com¬
to stay; and no dis¬

stocks

turbance which I

can

foresee will

99.2299%.

Security for the entire issue of
is to be provided by
55 diesel electric road switching

ciaries

has

come

from

our

Frank Noonan With

certificates

prompt us to drag; our staunch
locomotives and 2,000 hopper cars;
boats completely out of the water.
estimated to cost $26,091,030,
among the minority that has the recognition of the place that com-? There may be a challenging op¬
-; Associates
in, the offering are:
foresight
and
courage 7 to 3 turn moil stocks have acquired in the portunity to demonstrate our sea¬
Dick & Merle-Smith; R. W. Pressagainst the tide of popular opinion; investment picture. An important manship v in waters which' are
prich & Co.; Baxter & Co.; Free¬
A critical eye on all these fac-i aspect of the ownership of stocks rough but still navigable;
man & Co.; McMaster Hutchinson
is the responsibility; it carries—an
(3) Inflation is an evil force for
tors is- essential.1 This is no time
& Co.; and Shearson; .Hammill &'
for complacency yor
blind ^opti¬ aspect, that bears constant repeti¬ which common stocks are not the c°.
tion and emphasis. As substantial cure,' Combatting
---Vl inflajtion by
mism;;-Whichever way things go;
owners of the industrial fabric of
every means at our disposal is a
we can be certain that we are in
the nation, we must use our in¬ challenge as well as a duty. Our
First International Adds ;
or
are
approaching a period of
fluence and our position to foster
ownership of equities makes this
(Special to The Financial Chronicle)
change, that will challenge our
the
conditions
that will enable
imperative. :
/
.7
ingenuity and our resourcefulness.
DENVER, Colo. — Robert
W.
these holdings to prosper.
(4)
Finally,, as• bankers we Allgaier, - Maurice J. Fleming, S.
No
segment of our financial
structure
is better equipped to 7 For example, we are as bankers should exercise our financial lead¬ Stanton Gould, Edward N. Jump,
de¬ ership in. such a way that our Dean McClain, and Mark Scott
'meet this challenge than the banks inevitably involved in and
in their fiduciary capacity.
In pendent on the political climate opinions will be respected, and have been added, to the staff of
ments

less. We must

FRANCISCO, "Calif.—First
Incorporated,

SAN

California Company,

and legislative appears, along with the confidence hazardous course that may con¬
authority and supervision. Long that sustains it.. Finally and in7 front our country in the years
time experience in credit and in- , evitably its freedom seeps away,- ahead?
:« '
:•
w/',-:' .V">
-V'■
vestment matters, augmented by* and the road to statism is wide
Knowing you as I do, I feel' con¬
ready access to factual informa¬ open. Never forget that that is fident of the answer!
tion and opinion, provides a back¬ a
one-way
thoroughfare
fromground for investment judgment which retreat is difficult and pain¬
and decision that cannot be dupli¬ ful/ '
;•

with

munity could accurately judge the

future,

the

and wisdom.

care

—

with

and

Eastman Dillon Co. :

own

1 Eastman Dillon, Union Securi¬
ties & Co.,, 15 Broad

Street, New
City,-members of the New
Stack Exchange, announces

York
York

that Frank J. Noonan has become
associated with the firm and will
be manager of the

municipal trad¬
ing department. He was formerly
With Bear, Stearns & Co. for a
number of years.

•

^I-

•

■»

•

their

have of the country. As
and continuity, along important national

corporate entity they

permanence

approach heeded. We should express them
elections in more often and more courageously

First

(Special to The Financial Chronicle)

DENVER, Colo.—Victor O. Stai-

ley is

Corporation,

International

now

with

Robert J.

nell, Inc., 818 17th Street.

Denham Building,

triumphant tycoon p
So

throw

you

lot of weight in

board of

directors' meeting! So what? The caprices
fair

sex

you

stewing in your

own

your

"women"—may

resort

the

flattery of

Right at the top of
L'AIMANT! And
the page.
a

juice, nonetheless.

executive

realm

nine to

of the

frequently have been known to leave

duplicate

With R. J. Conhell

your

prowess

suggest

the
you

truly fine perfume?

gift list, simply write

keep writing it, all the

Nothing makes

that

woman

way

down

femi¬

man—and nothing is more appreciated

by them, either!

•

L'AIMANT
BY

$3.50 tO $100.00
Compounded and copyrighted by Coty, Inc., in U.S.A.

plus tax

Con-

Ibo

(1458)

The Commercial and Financial Chronicle

Price of Defense Is Not
think

fair

that the

say

Military One Alone

By FRANK PACE,

Jr.*

almost

growth of the various sections of

in
growth of the world
our

country,

has

and

President, General

the
whole,

sense

direct* propor¬
tion

the

bank¬

our

and

ers,

maintaining there is

dreams,

economic

our

it has resulted in economic,

military value.

fu-

priate,

and that

there¬
that I

tary

but

cost

also

should

our

defense effort

from

should discuss
a

weaken

not

non-

ous

ancillary contribution

new

Frank

influencing

disarmament talks; and false
promises of peaceful co-existence,

Pace, Jr.

future

erowth"of"the

United

States—the

growth stimulus of defense spendina and its ancillary economic
cial

and

'
Uet

this

make

so-

scientific benefits

periectiy clear at

point that this

attempt

to justify defense spending on economic

grounds.

clear

rec-

ogmtion that large deiense is with
Lor a

r*°

ion*, time and an aiiempi

At ,the sJ.ighte,s^i?t that lhe ei?c"
my s p0*icX °f notary aggression
may be diminished or diverted,
niany of us are all too willing to
drop the burden of

arms.

would
tion
caj

say—by Russian exploitaparticular psychologiand semantic weakness.
of this

as^e®s.?ejancii^y,p^neiiw tnat
being and can be achieved

a
A

are

Thus, although the prime

our

dismayed that so many of our
people can be repeatedly "faked
0ut"—as the
high school group
am

Necessary

omy and the sustenance of
free enterprise system.
'

from

the nuclear past

potential disasters of the thermonuclear future.
Thus we live in
the

ev'cr-present

public

peril

that

the

forget or be persuaded
forget that the essential factor
our

ulate
large

may

capacity to survive is the.

maintenance

purpose

defense spending is a part of our
national program of survival, the
real point at issue, I think, is not
whether massive injections of defense dollars may currently sttm-

and make fictional and remote the

Premium

on
the gross
national
product,
Quite
obviously
on
economic

matter of practical experi- grounds alone, spending for roads,
ence,
we
know that thelpublic. schools, etc., would make a more
memory is short. 'Present prob- valuable contribution to the gross
lems and requirements tend to ob- national products However, since
on

strong

economic

(as

growth

any

might do) but whether

sum

the quality or character or

or not

defense, nature

defense

spending,

as
re-

the

soci-

tional

? and

trship, it has had, nevertheless,
fromonrlAiio

off'ont

against

nci'firm'c

mn»

world conflagration. We

x„i._i

„i_j

mentary hole in

total defense

our

cultural benefits

ofenduring and

scrf

and the
*

„

Yet

n-U'f

there

seems

most

neonle

to
a

„

the

di<stre«sc;inf#

£ ..J?® 5rl®

tendency to regard defense spend-

midst

surance

the

that

...v.

arsonist

fearc

fire

our

ire

founded,

our

pnHnrinff'

particular NATO—to the

frnm

wlQunnf,v.1 "in®'

alliance svslpm—

P°lianCe 01 OU1 ainance system
rity of the

ing as contributing only to mili¬
tary survival purposes; as an un¬
economic cost

DOrtance

.m-

...v..

Incidentally, it is impor¬

not

maintain

potential

but

equally
important
psychological point of view
that they know about our
superi-

•

literate lessons

In the thermo¬

only that we
superiority
over
our

technologies,

enemies

strong

insistent

the

age,

age.

tant

its

the

validity of the
"reaching for the
ultimate" needs no lengthier justi¬
fication
than the
philosophy of
"reaching for the tree tops" in an
earlier and perhaps less barbar¬

leadership position,

our

under

are

philosophy

nificant factor

the

present international soci¬

achieving it—first!

not overlook that

solely in terms of its mili¬

not

industries, products, etc.

and sig¬

new

our

compulsion of always reaching for
the
ultimate,
and
of
always

economic

must maintain

abilities, and should

consider

must

scientific, and cultural benefits of enduring and

Concludes

appro¬

fore,

time emphasizes why

same

their

w;i llingness
finance

tures.

nuclear

protection, aligned to

our

most

Corporation

justification for defense spending

grounds alone, Mr. Pace at the

"vision-grasp"
of

as good, or just as good or
slightly better is not enough.

even

Dynamics

ety,

been

Thursday, October 3, 1957

...

conservation

secu-

human

resources

increase\ and

ority.
.

we P L)s all(* others
•
What ;-d^s need ^ explanation,
however, the fullest explanation
jnd the widest publicity, is the
fact that..the tremencious scien-tific and technological advances
brought to fruition by our defense
spending — nuclear
fission
and
fusion, astronautics, new aerodynamic and hydrodynamic forms,
-

electronic computation, communis
cation and automation—have already spilled into industrial, commercial, and consumer fields, and
will-continue to do so with in-.
creasing effect.
It is these by-,
products of the defense effort,;of
our
defense spending, which are
now
adding immeasurably to our

capacity to develop new resources,
to create new technologies, new
industries,

and

products,

new

ploy men t

X-

new em-.

ultimately

new

standards ot living, new stand?
:i'preserva-yi
health, new kinds ^of

apd-.ttheir.'V- development

non-Soviet.world.--it4s:»/piannecj

—

the

necessarily endured

only to turn back immediate mili

tary aggression

It is this concept
spending, I believe, that

of deiense
makes

stock

vulnerable

themes

ganda;

false

Russian

peace

the

propa-

offers;

false

pacj.' of'^hcrmonuelear
.

Mr.

Pace

before

the

re-

c,uirc

further

ments
arguments

favor of large and continued

iii
m

fi
^
ithmkii!fg man
.

iki

survival

our

impact

lan

counter

SSI

eeon-

Wuwllke" thln/v"!

button to
our

national safety

our

capacity to

this

wnnlri

n in

atfn»4if.Tv
attention

call

sure,

to the impact of defense

period

lures we?e° S't oeu?eown
esting

They might fhid it inter-

th'p

FOR IOWA'S GROWING ECONOMY

also

War I

un'avnidpd
and

present
tures

World

and

for

World

to'

the

eTncndi

which, should
obviously
be
not

hpvond

Sies

catastrophe

thpep

nartipninr

the

trace

rein-

tionship between
tionsnip between the tremendous
lecent growth
of our gross na-

stantial

WHEN

YOUR CLIENTS

are

looking for

new

areas

the

for

expansion,
a good look at Iowa.
Sixty of the nation's 500 largest
industrials now operate
manufacturing plants in Iowa. Iowa Power,
and Light
Company, Iowa's largest business-managed
ask them

Central
area

take

and

utility,

Southwestern Counties

approximately 5,600
industries making use of the

sq.

with

mi.

serves

and electric service—an
In Ipalco-Land you'll find new
gas

native labor force

made available as
agri¬
requires fewer hands through mechanization. Abundant
elec¬
tricity and natural gas in the area have been
big factors in their choice
culture

locations.

Ipalco-Land.

They 11
Inquiries

find
are

many

invited.

famous

navies

for

neighbors

is,

defense^xpendittSes
period of time.

same

I suspect

re-

niiantix.

quantities

xhrnh«h

tniougn

ronptftivp

lepetitive

j ultimate toi.m oi use

J. g

..fulness and lowest uiuttcost. We
,

hpP1>

£aye never P1 e yi o us y .been,

^rde fZ rasic ^de'ntmc
SSSh Yrt ^theTrge,T drive

re-

there

between

over

If there

the

...

fense

extrapolations
with

spending

respect

can,

substantial

has

defense

research,

Senuity into basic research as
well as into mass production tech-

over-all
an

emotional

compulsion

irirI:

desne to survive as mdi-

economic

condensed

into

years

CUIlueilbeu OU >edlb UHU

10. \,In consequence,
possibility

have

to-

producing

b/hueleaM^of the'atoms^
water limitless

power for a

As systems develop which
nut

the

low-cost,

per-

utilization

and,

balhave theguaanty olpower

plenty. For the two-thirds of
initiated a new era of economic the world's people Who have not
and cultural growth. The value of the strength nor the'-knowledge
niques,

consequence,

has

foiiit^Vt—'famine0^

approach can never tunity to oveicome lamine, disbe measured in dollars and cents, ease, and poverty, nuclear energy
.

Compulsion to Improve

promises such individual and
tional

cultural

When one is faced with a potenas
.tial enemy who has the capability areamea oi.

and

na-

economic, de-

never

before

Today Americans traveling in
pressurized
comfort
across
our

country and the globe do not stop

to think that without military research, we might still be traveling
almost exclusively on the ground,
As for the commercial jpt aircraft
of next year, that would be decades away.

a tiny device no larger than a
One must, with an alacrity just pea has brought about a revoluone
step short of panic, make tion in the electronics industry.

those

essential

de-

state

judg-

ment, be misleading. Any massive
injection into our na-

would have

the

Hpc.,

forced a scientific revolution in power as plentiful as air, whole
America, has compelled us to new universes will open before
channel our energies and our in- us. In a world soon to be short of

and

monetary
tion's

one,

research and development.

such

under

our

Economic and Scientific Value
Yet

peaceful scientific

st^vival/the necessity of reaching million millema.

direct

stimulus

tional metabolism.

conclusions

in an un-

and economic growth,

for sea

and the announced intention of
striking a sequence of catastrophic
large defense spending and a sub- blows at times and places of his
stantially increased rate of growth own choosing, one may not proof gross national
product it quite cced by easy stages to the leisimply
follows
that' defense surely development of ultimate
spending per se might be coun- weapons. This is particularly true
tenanced
on
economic 1 grounds *n
light of the tremendous
alone as a stimulator of the na- emphasis that Russia is placing on
as

•relation

have; been developed
hurried era of

°Pment•
course, may say. In such an ideal
,.As a -aUon we have long been
highly respected for,our. capacity a3e-?n oerha^s 50
velrs Yet
to produce materials in .large alo"g "J perhaps 50 yeais. Yet

mTgh^
our scientific

history/we

illuminatine

wnrM

pviiphqi^p

worlcf

Onifp

War

III,

rrinrp

but

war«_WnHri

still-to-be-avoided

must

na-

devel-

for the ultimate, manifest in

the

nronosed

the

War

occur,
mprpiv
war

comrjaS

technological

„

spending

by the British Empire in

country

and

and' processes;- We have done remark?

historians

r-nii

«nro

America.

the

able work in'taking a scientific^■. yiduais and as a nation, under the
foreign policy ; or engineering idea arid develop- need
reaching -for the ultixuioign policy.
b
form nf
mate," and of reaching for it fast,

connection,

would,

of
the

memiing-

pureue a

ful and worthwhile

WITH GAS AND ELECTRIC SERVICE

to examine briefly the role
ui
of uficiisv sptniuuig on oui econdefense spending
our econ
omy quite apart from its contn-

IPALCO-LAND

J!16 immense-range-of present
tioionl programs of scientific

dVili reier 10 ine civu
military defense

may,

enduring

II^^nr].SX„rA^i?c»yrN.C3! the
euxpenditures must be made to « SS
requirements of
viable

Sep.. 24, .957.

man-

Whether or not nuclear fusionv
benefits accruing from the thermonuclear process—ipight
second,

v""

striking

thf

I refer to

survival.

„

nower

de-

recognizes that these

!hg in holding their skilled

ondary strength m our defense
power, it".,but
one
indication
system less obvious than military^ x^ic pohtrihiition:--*second
in
this',contribution;
t

fense expenditures. Of
course, any
.

address

•v,
war,

function

appreciable impact

which

the

advances

the

Whether

weaponeering

art

played

part in the birth of the

will most instantly interany possible
aggression by
potential enemy. When military power is multiplied by electronics and atomics, something

not

military

money

cept

transistor, it certainly accelerated
its growth substantially. As we

any

watch

the

vacuum

the

disappearance

tube

from

electronic

certain

stage,

the

areas

must

The Commercial

Volume 186

Number 5678

again tip

hat to military funds

our

for development.
of

One

rest

since

that

gap

Banks'
Deposits at New High

international

1800's—has

the

been

economic

substantial

The

between industrialized "have"
and agrarian "have not"

recently
narrowing.

than

rather

widening

1957-58 edition of the Mu¬

directory, the largest savings bank
Directory, re¬ (The Bowery Savings Bank, New
leased by the National Association York) had deposits of $1,400,000,of Mutual Savings Banks,, records 000 at mid-1957
the smallest,

inequality

—

increase

over-all

deposits $657,000. The median-sized mutual
savings bapk had deposits of $19,-

during the year June 30, 1956the paradoxical June 30, 1957- of $1,717,000,000.
by-product of military research
Total deposits of the 525 mutual
and development, we possess the
peaceful power with y/hich to al¬ savings banks in the' nation at
leviate
jhe hunger, the thirst, and mid-year stood at $30,902,000,000

Now, however,

the

of IV2 billion of the
peoples, and to quench

poverty

world's

290,000 and 14,000 depositors. The
new
directory also reveals that
there

are

now

banks that

are

and 72 with

and

depositors

numbered

than

21,500,000.

185 mutual savings

100 years old

over

deposits of more than

Assets kept pace $100,000,000.

that

nationalism

militant

the

for

gives

current

individual

each

data

assets,

tual Savings Banks

nations

deposit gains, reaching a new ings bank services and branches
shows that as of June 30, 1957,
high figure of $34,415,000,000.
284 savings banks had safe deposit
Bowery Savings Largest Bank
departments; 287 issued savings
life
insurance;
464
had
According to the statistics in the bank
with

Mutual Savings

of world un¬

source

the

basic

our

problems—a

(1459)

and Financial Chronicle

A tabulation of sav¬

Christmas

Clubs;

and

255

con¬

ducted school savings programs.
V

amount

information

well

the mutual

investments

paying in¬

terest-dividends.

savings

concerning 'individual
banks

depositors,

mortgage
methods

and

rates

statistics

and

sav¬

year's edition of the direc¬

This

tory has been expanded to include
the Constitution and By-Laws oI
National

the

Association

the

providing
ficers,
and

the

location

indication

services

offered,

branches,

the

various

directory

Association together
member

assigned

Not

Should

mittee.

Weaken

position of world lead¬

ership, this opportunity to recon¬
struct our
world anew, is f most
gravely threatened not by the en¬
emy across the seas
but- by the

within: a weakening of
weariness of the spirit.

enemy

purpose, a

One of the facts that

peo¬

ple must recognize is .that histori¬

civilizations that have
fully satisfied are destined

cally
come

obliteration.

for

comforts

in¬

the

physical require^
less, there is a gradual

and

crease

ments grow

weakening of the drive that has
carried a nation to the top. It is
only when there
to reach for that

lization

prepared

Surveying
satisfied

nation

keeps itself in

readiness

come

higher goa

are
a

the

with

or a

civi¬

state of

for tomorrow.
nations

fate

I
have
view with alarm the esprogress,

tablishment of any arbitrary ceil¬
ings on our growth. As a former
Director of the Budget, l am quite
of

aware

the

fact

ceilings

that

must be set and bench marks must

established.

to the

which

this

Without

This

of big

control

nation

them

spending in
is

engaged.

cannot

there

control.

economic

sound

essential

be
the

other

hand, for an economy which
constantly
expanding, I feel

that

the

and

final

imposition

limitations

arbitrary
either
in

or
in our defense
would be < unwise.
For¬
tunately, I think that experiences
of
the
past
are
such that we
as
a
nation would not undertake

bur. national
set-up

to limit

defense requirements

our

economic grounds, for
this would obviously be most unon

purely

Meet

It is quite clear that a

tvise.

defense

strong
insurance policy

our

fly about to commit insecticide

a
1

Pushbutton

against total disaster and that we
as
a nation
must be prepared to
pay the price to protect

are

ourselves

of course, a carefully
price, and always a
mice in which we seek to obtain

products in pressurized tin cans
revolutionizing U.S. living habits
•T*

—always,

considered

;he full value of our money.. The

of two world wars leads

cost

un¬

questionably to the conclusion that
on
a
preventive basis alone the
price of
I

one.'

defense is a justifiable
think, however, that our
our,

people should be made aware that
with the multitude of products be¬
ing generated by military research
programs—of which the ICBM is
only one example, although clearly
a
most potent one—the problem
of

selecting

and

the

proper

weapons

important, the proper
weapons must become ever

just

anti

difficult

for

our

defense

leaders.

They need our under¬
standing and suoport in trying to
solve

one

the

most

"fabulous"

vision, for the day we fail
to reach for the ultimate will be

their

doomsday—not merely the day we
lose our world leadership, but the

lose our chance for indi¬
vidual and national survival.
we

In less than

(Special to The Financial Chronicle)

LOS ANGELES,

Calif.—Hugh D.

"phenomenal,"

10 years its

has rocketed from
350

million

single

you

production

to more than some
yearly. And from a

zero

units

product—insecticides—to

Then, through the resources of the
canning industry, economical dispens¬
ing valves were developed, and in 1947
the first low pressure

"The

aerosols

pressure,"

low

Kleinpr, Tibey Kleiner and
L.
Zeitlin
have
been

added

the

staff

Bennett-

Beverly Boulevard.

Hamilton

Mr.

disposable

stored, spoilage-safe and
surized tin can."

and shaving lather, for
example. Dessert toppings and fire ex¬
tinguishers. Sun tan lotions and personal
deodorants. Medicines, paints, waxes,
pet and garden sprays ... the list goes
on and
on. And new products are ever
being made available.

and liquefied gases are
used to discharge the mist, foam, liquid,
dry powder or whatever type of product
is to be propelled through the nozzle by
a pushbutton
touch on the container's
valve. The type of gas depends upon
many factors and is given careful con¬

than 100

Hair

products for

our

better health,

sprays

sideration
A "Bomb"

Started It

Hamilton,

Chemical

Association, estimates
in

of the
Manufacturers
business volume

secretary

Specialties
a

aerosols of "more than

billion

dollars

third of

year—and

it's

fast

multiplying."

'
>
"The industry," he reports, "sprang
from
the insecticide 'bomb' used by
War II

GI's. These

were

small

cylinders filled with pressurized gas
propel the bug-killing agents. Civil¬
ians took to them, too, for their novelty

steel
to

and convenience."

by manufacturers.

The pro¬

gases

fluorinated

the

great favorite everywhere,
their convenience."

"Metal

can

BUILDING

At National Steel, it

our

constant

goal to produce still better and better
steel of the

quality and in the quantity
possible cost tc

wanted, at the lowest
our

customers.

SEVEN GREAT

beginning,"

PITTSBURGH, PA.

DIVISIONS

WELDED INTO ONE

STE E L-M A KING
Great Lakes Steel
Steel Company •
Ilanna Iron Ore

Corporation • Weirton

Products Company •

Corporation •

COMPLETE

STRUCTll R E

Stran-Steel Corporation •
Company • National Steel
The Hanna Furnace

National Mines Corporation

CORPORATION
katiovai

all American industry.-.

Mr. Hamilton. "The cans made to
specifications they helped develop have
withstood all tests in laboratories, fac¬
tories, homes. Today, aerosols are a

GRANT

supplier of both electrolytic and hotdipped tin plate. Y
Of course, tin plate is just one of the
many steels made by National Steel,
Our research and production men work
closely with customers in many fields to
provide steels for the better products of

says

NATIONAL STEEL

really

canning industry uses each year. And
our Weirton Steel Company is a major

manufacturers were active

this field from the very

steel thinly
coated with tin to resist corrosion. It
takes tin plate in enormous quantities to
make the more than 40 billion cans the
"tin"

for the whole industry.

primarily for

National's Role
The

most widely used are among
hydrocarbons. Certain
liquefied petroleum gases find use, too.
In food aerosols, nitrous oxide and carbon
dioxide are usually the propellents. The
name "aerosol"—literally a fine airborne
mist or spray—today is the generic term
pellent

■„

pres¬

Compressed

Stanley

Gladstone-Manning Company, 8417

out.

points out, "means only a lower pressure
of gas than in the original 'steel bombs.'
Acceptance by the public was instan¬
taneous. And so a lusty new industry
was
born—via the lightweight, easily

Claterbuck, Julius Fabian, Herb
Folkman, John J. Goodman, Jr.,
Jack

came

comfort and convenience.

World

With Bennett Gladstone

and"

might well consider the spectacular rise
of the aerosol (or pressurized products)
industry.

difficult

problems of all times. Our leaders
must be encouraged never to limit

day

to York, N.
New toss around such superlatives as
Y.—When tempted

with the staff

to ;:each

Yet this

and

In addition to listing of the members of the vari¬
names
of all of¬ ous commitffees of the National

ings bank industry.

springs from them.

bank

surplus,

and number of mortgages, and the

This annual directory gives de¬

tailed

number

deposits,

com¬

(1460)

The Commercial and Financial

A Hard Look at
One of

the

points troubling

Chronicle... Thursday, October 3, 1957

Few Tasks Ahead

By MALCOLM BRYAN*

good deal these latter years has
been" the
tendency for certain
locutions practically to disappear

pretty serious

from

lan¬

our

by the same
token, from
emphasis in
our

plishments and

ments

their historical role

resume

our

supposed economic

and, in disagreeing with

progress;

stimulation of consumption.

not

ge ne ration

since

skeptical look

depicts the American economy's problem

It has

been nearly a
now

rate

way

life.

protagonists of thrift; takes

accom¬

Warning that

some

The

all

word

the

preference for the opposite which exudes

false

accomplishment."

con¬

sense

notations Of

-prior

welfare

and

caution that it implies, has
practically disappeared from the
thinking of most individuals and
of a good many businesses, not to
speak of the distinguished trustees
of

love.

public purse — those who
manage our affairs in the several
our

levels of government.

wastes
Bui

energies and

our

fundamen¬

tally, I think, we seem as a people
to have a magnificent obsession:
must

not

only keep

regardless
are going.
So

where

the

them,

Joneses

or'

governmental

affairs.

content

buy

;It

hardly likely that individual folly,
with
ill-afforded
luxuries, * will
produce a government that can
,

save
our

from the consequences

impudence.

own

likely

that

vasive

t.'V.O-

not

are

with

the Joneses but get ahead of

•

j This is something about which

resources.

characteristic

waste

vidual behavior

of.

the

our

per¬

indi¬

shall produce

washing machine. Nor are we at all levels governments that
to buy it on credit.
We faithfully mirror our own lack of
must have a washing machine that character. Perhaps it is time for
;
in good standing. Still, even the
all
to
not only saves work and cleans us
remember
that
our
phrase "I don't need it" has also the
clothes; but we must also society is one of free choice, that
seemed to disappear from usage
have a machine that plays the the right, to choose /implies that
ps a standard in any way. related
Blue Danube in high fidelity, and there are consequences of
choice,
to purchase. It survives in our
says /"Good morning,
dearie" to so that we do have an inescapable
parlance only as a sort of wise¬ the housewife. We are not
merely responsibility, for, our own indi-j
cracking prelude - to social
ac¬
cdntent to buy it on credit, but vidual welfare. It is barely pos-?
ceptability in making clear that the terms
must stretch over the sible that thrift has more Virtues
the user of the phrase solaced his hill
into the wild' blue yonder- than we have been inclined in
ego
by
making
the
purchase We are not
content merely to fill these latter decades to suspect and
whether he needed it or not.
our
need for effective and com¬ that, though the meek are at long-;
fortable transportation* We must last
to
inherit
the
earth,- Our
Departure From Reality
have a dreamboat. Then, too, we Father may just possibly in the
j Instead, we have come increas¬ must have super, super-duper economy of the universe, have ar¬
ingly to use bits of phraseology
that the earth will
be
highways
to 1 accomodate
the ranged
that de-emphasize any necessity
trusteed to the wise and prudent.
dreamboats,
as
well
as
more
for
personal thrift and de-em¬
wreckers and ambulances.
Possibly it is time we should all
phasize any
sense
of
personal
remind ourselves that credit, used
Now, of course, our houses and
responsibility in the individual for
apartments must have a built-in wisely, can aid the individual and
his own ultimate
there is surely a mistake, for the
Word afford must somewhere be

content

welfare.

Con¬

enrich

society but, ill used,

vention,
stroke

consumer

credit,

illimitable

genius.

and

the

Joneses

wouldn't

caught dead mixing
kitchen

sink.

drink in the

would be in¬
ourselves endlessly that
we|,
high-savings economy and tolerably degrading for us to do so.
the repayment of
Although
these
remarks
are

assure

are

uncritically accept
conceptions that em¬

intellectual

We have treated

point -out that

uses

if used incautiously and

or,

unwisely,
"the

our

to their most productive

resources

rope

can

support

supports

the

all like

hanged."

debt is a saving. We point with somewhat facetious in
None of this is of any use, of
experssion,
pride to our
vaulting pension there is more than enough truth course, as an exhortation in mo¬
funds, assure ourselves that Social in their substance to trouble me a. rality or in virtue.; for virtue's
Security will take care of this big great deal. JLet me be clear, I am sake. It is of some use, however,

happy family; and, if we are then
not entirely reassured, we
point

not

denouncing credit in general

nor

consumer credit

The

the tremendous volume of

in particular.

our
simple fact ' is, a modern
plowback.
Of society without a
credit mech¬
silly misapplication of anism is hardly
conceivable, and
disregard of personal consumer credit is surely one of

case

Americans have total¬

underestimated

tasks

that

lie

business-earnings

stance, such

course,

useful

capital

welfare

our

great the

ever

own

part,

stupidity,

anything bad
depression, for

can cause

happen — a
instance—for the

government won't let it
It's all very comforting.
isn't

the

how¬

miracle

happen.

Anyway,

America

the greatest gadgets ever invented.
What is bothering me is the fact
that

people seem to get
swept away with our enthusiasms
and

insist

cesses

embracing

our

the

virtues.

What

ex¬

the

bothering me, and becoming in¬
creasingly distasteful, is the thick
obsolescence economy? And won't frosting of nonsense
that overlays
longer vacations and the 30-hour so much of our expenditure.
fact that

have operated

high-

work-week be lots of fun?

Partly

our

Return

philosophy

from the inflation of the postwar

world,
effect

which
—

reckless

and

inevitable

who gets it
now,
against the fellow

man

penalty
back, defers his

holds

chase, and
that

the

borrower and speculator

and for the

who

has

huge reward for

saves

others

may

money

pur¬

in order

borrow.

arises

Partly

seems

now

Concepts

that

useful

introduce
tain

Realistic

for

into the

phrases that

it
all

language
are

re¬

cer¬

first

ap¬

proximate
test
of
expenditure:
"Can I afford it? Do I need it?
Is

productive?

Does

endanger

it?

contribute

Have

wasteful?

solvency

earned

the

philosophy arises from the right to this luxury, or must I
intellectual climate of the last 25 impateiently possess it by borrow¬
years. We have developed an im¬ ing the savings of others? Such
posing rationale to support the questions and many others are not
the end-all or be-all
of economic
enticing belief that spending and
consumption are altogether and wisdom; but perhaps they con¬
our

always

good, ignoring the more
difficult problem of whether the
spending - produces
wealth
and

tributed

something to the lan¬
guage that might be usefully re¬

trieved.

Maybe
•An

Annual
of

the

tion

address by Mr. Bryan before the
National Bank Division
Meeting
83rd American Bankers Associa¬

Convention,

Atlantic

City,

Sept. 23, 1957.

J..

us
are

not

would

useful

remind ourselves that if

foolish

for
we

are

likely to be collectively wise,
in

before

us.

reminders

For

in¬

might

preparing us all if, one
soon, the rate
of luxurious
expenditure that seems to stretch
day

onward

and

upward

ever^..

enticing aspect should prove
insupportable, and a .blue Monday
follow an exciting weekend.
A
more

little

intellectual

preparation
might be helpful in assuaging the
psychopathic shock that too often
besets people and populations in

tioned

magnitude

the

has

—

been

world

would, by 1900 B. C.,
given the world a popula¬
nearly twice what it -is
today.i
Well, the population of
have
tion

country these latter

our own

years

has been growing at a far more
rapid rate than 1% per year. In

undertakings, public and pri¬
vate, that do not yield the earn¬
ings or social savings sufficient to
liquidate the debts that they have
entailed.

Population Growth's Danger
But

the

point I

want

make

does not lie in such vague
appre¬
hensions.
It lies,
rather, in the

fact that

Americans—until just
we have begun to
suspect—have failed to appreciate
we

our

business

groupings

the

magnitude of the population
explosion that this country is ex¬
periencing and, when we have
grasped the magnitude, have tend¬

whether

Gross

dollars,

National

Product

the

and

modest

becomes

faint.

very

Why,

then,

the apparent justice of the philo¬

sophy of

go? Well,

easy come, easy

the

answer

per

capitas

approving

is,; because
and I

—

little

the little
not dis¬
capitas—

per

thus far-have been little

consume

Most, of the increase in our,
1950, our population was grow¬
ing at the rate of 1.63% per year*' national product has thus far been
in
available for Papa and Mama. But
1955, / 1.73%.
That
rate
of
growth, to be sure, cannot go on each passing month finds the little
forever; and it will fluctuate from per capitas becoming bigger per
time to time; but the point is, we capitas
and
bigger
consumers;
and it is going to be a good many
are looking at a population that
in the next 25 yeafs will probably
these growing per
years before
capitas become producers in their
exceed a quarter of a billion peo¬
own right.
ple. Measure that figure against
ers.*

present

our

million

wish,

population

171

you

or\thereabouts.

that

romance

that

the rate of

assume

constant and

in¬

Now, add the fact that this po¬
pulation explosion comes at a time
in

history when

our

vote

unparalleled

productive

our

must de¬

proportion

capacity
to
raw mate¬

armaments, when the
rials
in

problem

many

life,

becoming acute
of our economic
the capital require¬

areas

when

ments to outfit

new

member of

society, distinctly including edu¬
cation and training, are at a peak
and

can

expected

rapidly

increase, and when Americans of
class

determined to
play more, then
throw into the picture, our na¬
tional
preoccupation
with
ever
increasing standards of consump¬
every

work

less

seem

and

tion—mix all these
and

and

add
have

things togeth¬
other

few

some

factors,

idea of

major

task ahead.

Not
The

Rich
of

size

that

We Think
task

has

been

greatly underestimated by most of
We have been inclined

luxurious consumption, and more
and more little per capitas—all at
the

and

one

same

time.

Formidable Capital Requirements

is not

might prepare us in the
event, as has always heretofore along on the easy assumption that
happened in headlong booms, we miracles will always be forthcom¬
one day wake up to find that
that we can have more and
an. ing;
leisure,
more
and
more
embarrassing fraction of our cap¬ more
ital commitments have been made

into
get
a totally
different picture. A big
part of our apparent increase in
income has been the "money; illu¬
sion" of inflation.
When the fig¬
ures
are further adjusted
by di¬
viding/the
totals .of .income,
incomes

money

constant

and ipersons, the rosy glow that
enshrouds • our
accomplishments

us.

the in¬

in 4004 B. C., that a 1% annual
growth rate in the population of

of grave and totally un¬
expected disappointments. Again,
men¬

translate

total, we get a negligible
shocking or, at best, quite;
figure. If we make the
necessary adjustments for money

the face

recently, when

individually

either

the

doctrines of the sort I have

would
to

some

dearly

just as a
calculated,
assuming that the human species
began with the creation of Adam

Take

shocker.

can

wise governments to allocate

explosion as an or
disposable
income,
by
the
of "good business."V; number of people who must share;

augury

bar, even though the house, the
crease of population will tend to
automobile, the washing machine, degrade both the borrower and' fall sharply. Yet, simply from the
the kiddie-coop, and the last vaca¬ the lender and impoverish both
phasize the desirability of luxuri¬
youngsters now in being and on
the individual and the
tion
are
not
society. It the basis of the most conservative
ous consumption. Thus we all hold
paid for. That is
hands and assure ourselves that simple. The Joneses nourish them¬ may be worth remembering that assumptions, any resutlant fig¬
the facilities of credit can be used
credit is a magnificent thing and selves on spirits
alter a weary
ure
gives an astonishing magni¬
that our own. peculiar credit in¬ day. So we must do the same; by wise men, wise" businesses, and tude.

versely,

But

crease

casually to get the significance

wrong end to.
the
population

the

luxurious

the

that

terms of

with

gadgeteering

Malcolm Bryan

earning

consumption has ap¬
skyrocketed,, when we
apparently afford to solace

emotions

our

security and

T.\

ability

current

may

"afford," with

the

parently
could

capital commit¬

our

when

decade

of production and saving and

as one

one
say,
"I can't afford

any

our

expen¬

American people to lay out money

intellectuals,

some

it."

heard

wasteful

cast, and it is bigger than a man's
hand.
We have lived through a

be unable to liquidate the debts they have entailed, Mr. Bryan
criticizes the tendency to cease using certain economic words and
practices

have

reappraisal of

toward

diture.

The shadow of events is already

Atlanta Federal Reserve head suggests bankers

and,

guage

attitudes

President, Federal Reserve Bank of Atlanta, Atlanta, Georgia

seems

The shadow of events

essary

member

of our economic society:
tools, machines, factory buildings,
desks, chairs, houses, churches,
streets, sewers, hospitals, schools,
training, and so on through a pro¬
digious list—the whole structure
of things that can be attained only
by diverting men and material
from the production of immedi-!

ately

consumable
of

equipment that

can

of leisure.
need

luck

such

dence
for

Karl

sure

that

and

that

the

with

going to involve
society and all
private and public, a

Sax.

takes

means
no

ge¬
we

this

equipment for produc¬
training,
and
living,
the
of consumption for the
new generation will be lower, not
higher, than it has been for the
present generation.

ing,

standard

are

billion

now

spending about $40

on capital invest¬
distinguished writer2 on
subjects has
recently
estimated that by
1965 we will
heed to be spending $65 billion a
year and, 20 years from now, $100
billion.
Even
allowing for in¬
creased efficiency of capital—by
one-sixth to 1965 and by one-third
in 20 years—allowances that, if
attained,
would
verge
on
the

ment.

year

economic

miraculous

that

—

writer

comes

out with 1965

requirements of $55
billion and 20 years hence, $70
billion. Let us quarrel with these
figures all we want to, let us do a
lot

statistical

polishing, let

cherry-stone
plus or minus the

by considerable

amounts;

nonetheless,
the
essential
fact
comes through: the task of saving
the required capital sums is going
be

mean

little

under¬

taking.

shall

pru¬

the

goods

equip the onrushing generation

Problem

prudence to avoid

need is

classes

segments,
1 Dr.

result

all

and

capital

point out that, unless

than

the

ultimate welfare.
nius

easily find itself, per
with a diminishing rather
increasing standard of
consumption, both of things and

cans

goods

production
and durable

figures

person,

also

of apparatus and things nec¬
to equip a participating

array

instead, that we ■ are not
nearly as rich as we think we are
and that, unless we are very care¬
ful, the next generation of Ameri¬
me,

can

be foreseen by the process of re¬
collection. Let us recall the vast

of Production,

Not Consumption

going to require not only

fantastic

absolute

probably
2 Peter

amounts

but

increased percentage

Drucker.

of saving in

borrower, and the economy a vast

tional income.

embarrassment.

proportion to the na¬
It is entirely clear
that
as
individuals,
businesses,
and governments we are not going
to have a dime to waste by the
of our resources;
and if, in the American tradition,
we are to have a still higher level

Then, there is

not

are

all -but

leisure, we
going to have a

even

to throw away on ill con¬

penny

sidered

foolish

Doubtless

adventures.

do the job, but

can

has

oldtimers
role.

intellectual obsolescence of

is the

gentlemen,

of " them

few

have

abdicated.

A few

stayed with their

Latterly, almost day before

their classic posture.

Perhaps you
will/not mind my saying that
bankers
could
perform
a
real
service to the American people if
now

torical

took

role

and

forcefully

again their his¬
more

generally

reassured

learned, who fondly imagine that

and

the

American people that

problem
of
the American
economy
is the
stimulation of
consumption. There will be shifts
of balance as the years unfold, of

our

yesterday, a few bankers have
rather self-consciously reassumed

deal of
doing. The greatest rate of ob¬
solescence
to, be
seen
in
the
American economy today, I think,
they
it is going to take a good

some

role in

that in

and

consumption

It is

society
the last couple of decades

of thrift.

least not shameful.

the

thrift is at

The new bonds will be redeem¬

Gulf States Utilities

other matter.

one

Historically, the banker in Ameri¬
ca has been the great protagonist

misapplication

(1461)

The Commercial and Financial Chronicle

Number 5673

Volume 186

able, at regular

47/8% Bonds Offered
Halsey,
Oct.

Stuart

headed

&
an

Co.

Gulf

first
due

States

accrued interest in each

$17,000,-

Utilities

Oct.

Two With Mountain States
(.Special to The Financial Chronicle)

case.

Co.

generating,
distributing and
selling electricity in southeastern

1, 1937, at 101.50% and
interest, to yield 4.78%.

Texas and in south central Louisi¬

comprising

area

DENVER,

en¬

gaged principally in the business

Co.

mortgage bonds, 4%% series

accrued

States Utilities

Gulf

Golden

ana,

son are now

100.619%.

mated

sale of
the
bonds will be uged by the
company
to pay off short-term
Net

from the

proceeds

notes incurred

balance

the

area.
-

'.i

For

Richard¬

affiliated with Moun¬

Corporation,

Denver Club Building.

Newbold

steam

Admit

PHILADELPHIA, Pa.

The

—

Street, members of the New York
and Philadelphia-Baltimore Stock

and

Exchanges, will admit William S.

'•//

the

12 months

ended June

the company

had! total

Crowder (to

limited

Nov. 1.

■'

partnership

•

somebody is wrong,
whatever it
is worth, my own opinion.is that
in the long view such notions"are
not only obsolescent but obsolete.
and

course;
to

but. for

sure;

The

not

these

tenor

inspiring.; They

out of

remarks
may

place, though, in

damental

function

not be
bankers

convention. The banker has

fun¬

our

eco¬

nomic

society, for he has a major
responsibility in allocating credit
to its most productive uses.; If the
credit is well, allocated,, if it im¬
proves the economic situation and
welfare of the borrower, it is like¬
ly to improve .the whole position
of our economic society; and then
a large part of the praise for such
a - beneficent - result
can « rightly
belong to the banker. In the op¬
posite case, when resources are ill
allocated, /* when / they
subtract;
.

from

blame also rests

the

welfare of the borrower,

then the
on

than /add

rather

wealth

banker's

in; part

shoulders;

and

most of the blame will be made to

fall

there

the

for

simple

that few borrowers will
the

stamina

for

their

discomfort

own

reason

ever

have

themselves

blame

the

injury that society may have suf¬
fered by their recklessness.
Money Safety Is Not All
V

there

banking

mental

and
in

dure

classic

funda¬

test

proce¬

revolves
question, "Can this
borrower repay the debt that he
is creating?" It is the first test of
credit that must always be made.
I

think

had

lending.

that
vast

the

around

bankers, who have
experience in these
a - centuries'-long

matters

and

tradition

what

will

work

and

what

won't, have been doing a
good job with that question, per¬
haps an even
better job than
lenders with less

classes of

some

experience and less tradition.
"

However, it does not seem that
the banker's responsibility in the
position

present

discharged
of

the

whether

money

and

affairs

economic

our

loan

prospect of
is
wholly

determination
is

not

Perhaps the,banker,'

sale.

without trying to run his borrow¬

er's

affairs, could, usefully to us
all, introduce an additional ques¬
tion in his lending operation. He
might in a gentle fashion say to
some

know

can

get

de¬

positors' money back. The loan is
money safe.
We've settled that.
But when the loan is made, and
the money

spent for the purposes
in mind, will you be
better able to repay or less able?
have

Will you

be more solvent or less

solvent?"

Such

be something of an
and
a

would, in

intrusion that

represent

any case,

shift in the lender-borrower

borrower's

in which the lend¬

is not wholly expert.

often,

the

verifies proper account selection

electronically

selects correct posting line

electronically

picks up and verifies old balance

electronically

determines "good" or "overdraft"
balance

electronically
electronically

Yet, ever

banker would

great

service

detects accounts with stop payments

now

—

with the

National

picks up, adds and verifies trial

—

wrong —

perchance, have saved lender.

It posts ledger and statement and
journal simultaneously, all three in
original print (no carbon). It simplifies
operator training, and makes the opera¬
tor's job far easier. And it has many
other advantages which, combined with
electronics, bring the lowest posting
cost ever known. It will soon pay for it¬
self with the time-and-effort it saves and
the

errors

it eliminates.

because she

doesn't do it at all!

Through the miracle of electronics, far
of the work is done without any

picks up, adds and verifies balance

transfers
—

POST-

thought

and what the POST-TRONIC

does

ehctronicaUy,

than

method.

the operator cannot do wrong!

act or effort by the
be
done by any

operator
previous
And, therefore, far faster.

can

find

and, later

picks up and verifies accumulated

But

TRONIC, the new bank posting machine
most of the posting functions are per¬
formed electronically.
And what the
POST-TRONIC
dbes electronically the

balance

electronically

/•/•/ Afrovmim mAmn&
ammMHvmu

THE NATIONAL CASE REGISTER
*

pickup

operator cannot

electronically

tion he would have done the bor¬
rower

Up fo Now most of the operations in
subject to the human
element, with countless possibilities of error
and with time-consuming human effort.

and "holds"

that by gently raising such a ques¬

machine released for sale!

bank posting -were

check count

re¬

point of view, a side

of the equation

electronically

would be resented

and then

lationship from the lender's to the

the first electronic posting

question, added

to the test of money safety, would

new

post-tronic

of his borrowers, "Look, my

friend,

you

e/pafamal

Trade Mark

989

COMPANY,

OFFICES IN 94 COUNTRIES

W. H.

Newbold's Son & Co., 1517 Locust

sells nat¬

business

1957,

30,

Benjamin L„

—

in the Baton Rouge, La.,

ural gas

the

proceeds will be

conducts

also

products

in connection with

the construction program, and

population of 900,000.

company

Colo.

Edward

tain States Securities

28,000 square miles with an esti¬

bid

and

of about

The group won

award of the issue
competitive sale Sept. 30 on a

of $58,413,765
$11,589,442.

operating revenues
and net income of

underwriting

syndicate which offered
000

Inc.

used for other corporate purposes.

redemption prices
ranging from 106.40% to. par, and
at special redemption prices receeding from 101.50% to par, plus

DAYTON 9, OHIO

tit*/m*

(flto

fgigp
mfsmi-

■

;

34'

(1462)

The Commercial and Financial
Chronicle

Thursday, October 3, 1957

...

Realistically Solving Agricultural Problems
During

the

four

past

decades,

United States farm families made
that

sure

not have

By WILLIAM I. MYERS*
Dean

per

person

the

ing:

about

same

total

acreage

for

rapidly
expanding
pop ulation,
in

made

W. I. Myers

is not

worker.

difficult

because

these inflexible cash costs

be¬

are

These
re¬
coming more important every year
gains in productivity in modern farming. Hence, rising
largely to mechanization, prices result in rapid increases in

specialization, and the application
science

agriculture. They
have been made by farm families

net

farm

the
American system of
competitive enterprise, with
tractors,
power
machines, fuel,
feeds, seeds, chemicals, credit, and

incomes

prices bring

tions to the problem of

been made

prices.

the

scientific

hundreds

research

scientists in agricul¬

tural experiment stations and

pri¬

vate research laboratories.
The

farm
has

the

production

been

the

problems

and

basic

marketing

factor

in¬

creasing

the output per man in
agriculture. The Agricultural Ex¬
tension

Service

losses

farmers

protecting

against

severe

from* declining
In pointing out the weak¬

and

nesses

disadvantages of such

programs, we should not forget the
basic problem at which

they

how

welfare

protect

families

commercial

are

farms

the

modern

maintain

and

efficient food production in an in¬
dustrial economy with fluctuating
demand and prices.

time lag between the

come

improved

methods and

farms.

creased

result

their

use

this in¬

efficiency, food

has

be-

from

rose

$4.5 to $17.7 bil¬
lion because farm prices rose faster
than

farm

costs.

postwar

decline

come^sjteadily

of 1949-55, net farm in¬
dropped rapidly to $11.6 bil¬

come

lion

consumers.

other

country of the world
worker

earn

major

because farm prices declined
while costs continued to rise. Net

can an

urban

cash

much food of such

high quality

in so short
in the United States.

time

ity

steadily declining minor¬
the
population.
Family

farms

farm

per

one-fourth

from

period

dropped

unparalleled

1947

1955,

general

The drop in prices after the end

come

income

prosperity.

direct result of rising
pro¬
ductivity, farm people haVe be¬

of Korean Hostilities hit producers
of all basic commodities, but farm¬

fared

ers

have continued as the do¬
minant factor in our farm

worse

ducers:

self

sufficient

commercial

operations, selling their products
and buying most of the
necessities
of

production

and

done

and

living.
More
jobs formerly

the

farms

have been trans¬
ferred to factories to
reduce costs
or

shared

with

improved
possible

other

levels

With these
ous

groups

these

ers

have

stable

not

important, farm¬

been

prosperity

able

as other

economic

groups.
Wide
tions in farm
prices, with

attain

of modern

agriculture.

The price

level at which farmers
buy is be¬

coming increasingly sticky because
of administered

prices, long term

wage agreements, and
the like.
Farm prices fluctuate more
widely
than farm costs because in

large

part they represent raw products
sold on competitive markets. The
farmers'
problems are

growing

Myers
at

the

Annual

before
83rd

Convention
of
the
American
Bankers Association, Atlantic
City, N. J_

Sept. 24,

1957.

wheat.
the

last

fiscal

year

the

were

history.

business

However, now that cotton stocks
have been reduced at
heavy costs
to taxpayers, rigid formulas writ¬
ten into the law
require the Sec¬

and

ness,

speeded

its

and

petition

thus

Secretary

has

re¬

The

asked

Congress

rigid

these

remove

encourage

overproduction.

formulas

permit greater flexibility,

but

to
to
up

now

consideration has been

this

prices;

Offers
In

Over-All

spite

Solution

their

obvious

dis¬

advantages, the United States is
likely to continue some type of
farm price-support
program until
better method is devised

need

disappears.

the

large,
in

about

cotton,

$7.3

wheat,

they have

billioji largely
and corn; but

declined

dollars
last

below

year.

90%

were

lowered

1957.

the

Price

for basic crops were

than

parity

until 1955, then
only slightly until

The reduced
acreage of cot¬

ton and wheat has resulted in a
larger acreage of feed corps, thus
shifting exces production to meat,
milk, eggs, and livestock products.
jj.

Do Price Supports Work?
We

that

are

learning the hard

government farm

grams cannot make

prosperity.

price

L
way

pro¬

enduring farm

Price- support

pro¬

grams can cushion

declining prices
for a few months
by loans or pur¬
chases; but getting rid of govern¬
ment-owned stocks is slow, pain¬
ful, and costly to farmers and the
government.
A

long-run

supports

expected,

high
continuing
guaranteeing

program

overproduction
by
speculators
against

loss

even

acreage
is resticted be¬
of the incentive for more
intensive production. The
Acreage

cause

Reserve is

a
temporary measure to
reduce excessive
output of "basic"

safely

without

has

been

postwar

readjustment

The

greatest

courageous

tary policies

instability
tional

cial

fiscal

fairly
is a

and

reduce

mone¬

economic

essential

for

and

are

welfare

importance

danger

are

modern

na¬

vital

commer¬

family farms.

If reasonable economic
at favorable levels

can

stability

be achieved

and

maintained, there is reason to
hope the present overemphasis on
government

farm

What

The

realize

that

adequate

corrected.

the nation

Both

would

farmers

and

better off

lower price supports and move
toward free markets to guide
pro¬
we

duction

and

gradually
tions.

consumption,

relax

The

acreage

and

restric¬

flexible

price-support
law is a step in the right
direction,
but
more
flexibility is needed.
Price

supports should' be placed
at levels that will not add further
to

government

give

farmers

stocks

freedom

and

will

operate

efficiently.
Sine the low point of

1955, the
now

modest

11%

improved

farm

December,

prices have

recovery

higher
prices

due

and

are

mainly

business for

most

promising

ways

that

banks

Bankers

In Sec.

should

Extension
farm

enpaugh .has

this

...

investments of

and important
Farmers should
big enough to

Program

number

American

income
more

dairy products

meat animals will be

above last year.

help

the

and

other

institu¬

tional

and

dividual

in¬
ac¬

counts.

formerly
with

the

trust

in vestment de¬

partment
the

First

Na¬

tional Bank of

feckenpaugh.

low-

farm

families

profitable farms

and

substantially

Cotton and wheat
producers will have lower produc¬

with

have

disappeared
but

years,

still

are

last

Analysts

farms today will not

Society

Chicago

and

Boston Branch for

mechanized

B. J. Van

tional opportunities that include
training for skilled nonfarm jobs.

Another

need

efficient

but at the
to

rowers

same

for

farm

opened

office at 31 Milk Street

Math is, Jr.
credit

Mr. Mathis

operation,

time to help

keep their debts

was formerly associ¬
Hemphill, Noyes & Co.,Securities Corporation

ated with

bor¬

American

and

Estabrook

His

basis.

association

There has been

continuing in¬

thq capital and credit
requirements of modern commer¬
cial family farms.
Larger acreages
at higher prices per acre for ef¬
ficient production

frequently

re¬

quire longer term mortgages than
banks can give;
Working capital
requirements for tractors, machin¬

debt

years

has

while the

mort¬

doubled.

have

need

term

intermediate credit loans

real

changes,
for

of from 2 to 3 years or even
to
finance

livestock

building

whose

Van
main

longer

machinery purchases,
operations,
and
soilpractices.
These
loans

in
B.

Boston.
J.

Van

Ingen

office

Co.

Inc.,'

located

New York

City, also maintain of¬
fices in Chicago and Miami.
'

Josephthal Co. Adds
Josepht'nal
the

New

Brooklyn
Street,

York

Co.,

members

Stock

with

the

Exchange,

that Arthur Barr is

associated
these

farmers

Co.

with

Sept. 26.

announce

resulfdf

Ingen & Co., Inc. was previously
reported in the "Chronicle" of

livestock, chemicals, and other

cash costs also have grown
rapidly.
Short term credit has about tre¬

•

under the management of John C.

Longer Term Credit Needed

permit

Ingen Co.

BOSTON, Mass.—B. J. Van In¬
gen & Co., Inc., underwriters and
dealers in municipal bonds, have

capabilities by still better educa¬

bled

the American Finance Association.

family
farm
operation.
These
boys, and farm girls, too, should
be given a change to
develop their

ery,

assistant

At least half the boys who

crease

and

He is

underequipped

needed in modern

safe

acts

now

institutional counselling activities,
a member of the Investment

getting most of their

income from small

grow

the

manager

Carl Holzheimer,
partner in
charge of the firm's individual and

million farm fami¬

one

associated

opportunities in
Two million small units

industry.

1952.

account

find

became

Security Supervisors in Feb-"

ruary,

develop

attractive

Chicago, Mr.

Peckenpaugh

large

underemployed,

the

manages

timely

effort.

admitted

Selected

program

management

business

Supervisors
been

home

especially

probably

go up a bit more in 1957.

partnership in Security Supervis¬
ors, investment counsel organiza¬
tion which

Service

and

have

from

CHICAGO, 111.—Robert E. Peck¬

encourage
farmer
borrowers
to
continue
their efforts to increase

gage

Income

handle

Peckenpaugh Partner

ity, and expanding markets.

and

meat

cre¬

well.

increasing net,farm incomes are
by reducing costs, improving qual¬

dairy products. Net farm income
gained a little in 1956 and will

for

farmers

good

depenable

Do About It

Will

programs

good

The

progress

farm

between

Substantial

cannot

dit to finance their increasing cap¬
ital
requirements.
This is good

along with steady pressure for
higher efficiency and larger oper¬
ating units.
•

ment

made

encourages

should

only real keep the labor force
fully employ¬
preventative of recurring agricul¬
surpluses is reducing the ed, using labor-saving machinery
and methods; strive for
higher
violence of fluctuations in the de¬
yields per acre and per animal of
mand and prices of farm products.
high
quality
products; and by
The most effective
way to do this
vigorous efforts seek to expand
is to work toward greater stability
markets and improve merchandis¬
of prices,
employment, and pro¬ ing of farm
products.
duction in our total economy. Wars
Support and assistance should
have been the major cause of these
be given to the Rural
difficulties.
Develop¬

same

supports

differentiate

require

tural

continued at

handicap ef¬

businesses, those just getting
and those losing out.
They

by,

continuing

farms.

still

farm

and only slow, irregular
improvement
can
be

and

are

production Joans

made

will

Farm costs the first half of
4% higher than in 1956.
There
will
be
a
were

lies

holdings

efficiency
of production
#nd marketing in
order to earn
satisfactory incomes
with present;prices and costs.
The

request.

did

boom,
only fair they should not

seems

*■/ Farm

given to

cannot

Since A farmers

up.

ficient operation.

aided

labor.

proportion to the smaller supply.
The 1959 price support on cotton
is likely to be close to 90%
of

parity

characteristics

turnover

not contribute to the present

squeeze;

retary of Agriculture to raise tne
support price of cotton in inverse

has

different from other kinds of busi¬

cially of tractors, machinery, and
1957

record of the United States in this

though
*From a
talk by Dean
the
Agricultural Division

current

Unfortunately, farmers have to management analysis and credit
with higher
costs, espe¬ statement every.
Wise bankers

speculative boom followed by the
inevitable bust. Continued sound

fluctua¬

resulting

ex¬

continued high sup¬
port prices for products in oversupply.

major

violent swings between
high and
low levels of net
incomes, have
become a major economic
problem

is
some
tendency
to
farmers too hard because

contend

couraged by

month

industrial economy.

helping' to reduce
especially of cotton
Agricultural exports

good.

made

living

changes, however, seri¬

First and most
as

be sold at current

unbalanced _production—too
much of the wrong things—en¬

billion

achievements.

the

farm

to i

tion and prices but will be
by government payments."

and

the

problems have devloped in the
monetary exchange between mod¬
ern
commercial family farms and
our

can

Government

Agriculture has kept pace with
industry in increasing the
output
per worker, and farm
people have

not

so as

long
Financing

credit stringency.
loans, for example,
might require faster repayment
than good farmers can make with¬
out
sacrificing
efficiency.
The

are

overpoduction
for
ample, amounting to 4 or 5%
than

our

made in curbing booms and cush¬
ioning recessions in peacetime, but
more
is
needed.
Thus far, the

because they had additional prob¬
not shared with other pro¬

labor.

save

and

than other groups

lems

tion, but they have changed from

produc¬

can

(3) did

and

Production

possesses

be squeezed

not

There
squeeze

subjected to major fluctuations.

growing popu¬
chance to catchup. Export

large stocks,

the

give

programs

these

son

cheaper in compari¬
with the spendable incomes of

lation

excellent

demonstration
of
problems.
In the wartime
inflation of 1939-48, net farm in¬

discovery of

statements every year;

economy not

crops and

The past 20 years have afforded
an

credit for these achievements be¬
cause it has
greatly shortened the

the

stable

largest

resulting

directed:

application of science and

engineering

falling

squeeze.

price-support programs
have developed as attempted solu¬
American

while

severe

Farm

other services provided by private
business corporations. They have

possible in large part

Shows Farm Income Drop

under
free

(2)

between

gap

loans.

mortgage

be squeezed

steadily

markable
due

intermediate credit loans";

boom, and, therefore, should

present

price-supports but

the

output per

the

production

good example
of this type of credit.

handicap efficient operation. Declares real preventative of recurring surpluses %

than

term

safely without analysis and credit

contribute

tion they have

farm

(1) requires "more

addi¬

doubled

term

characteristics different from other kinds of business
and, thus, loans

our

and

bridge

short

Leading agricultural expert offers specific arid over-all solutions to the farm
problem. Dean Myers would like to see bankers recognize that
today's farm¬

food

from

would

Agricult^ure,-/

State of

bulk milk tanks is

and

better

York

Cornell University, N. Y.

have produced

are

of the New

growing America did
worry about its food
supply.
They

firm

now

its

office,
186
Montague
a registered representa¬

tive. The firm also announced that

Kaye
them

Siegel
in

the

associated

main

office

Broadway, New York City.

with
120

(1463)

Commercial and Financial Chronicle

The

Number 5678

Volume 186

Pac. Coast Exch.

months

FRANCISCO, Calif.—Celof the 75th anniversary
founding of the San Fran-

Pacific Cpast

Division of the

cisco

Stock

Ex¬

change

CahIL

IImSam

made

The World Bank on Oct. 1

Chemical

CO.;

UniOVI 01 dOWn MlllCu

$329,405,-

a year.

Corn

Exchange

Bank; The New York Trust Co.;
and the

First National Bank of

1967.

Oct. 1,

The loan agreement was signed

in New York by Eugene R. Black,

President of the World Bank and

Chicag°-

loan in various currencies equiv-

If California makes

Form Polonitza Co.

Union

the

ANGELES, Calif. —Harry
Polonitza
&
Co.
has
been

LOS

portant epoch

$20,000,000

(Special to The Financial Chronicle)

im¬

totaled

The Hanover Bank; Bankers Trust yearly instalments through

concurrently with the granting of

Sept. 18, 1882.
marks

1957

adm

VvOlia DanK Loan 10

The World Bank, loan, together by the Hon. J. F. Naude, Minister
alcnt to $25,OOQ,QQO to the Union with
$10,000,000 of additional of Finance of the Union Governhalf the progress forecast for it in of South Africa for the import of funds to become available from ment.
The agreement doubling
the next 20 years, the Exchange equipment and materials required the new revolving credit from the the commercial line of credit was
will occupy a truly imposing po- for the expansion of railway ca- United States banks, is to be used also signed by Mr. Naude on Oct. 1
for the expansion program of the
at the offices of Dillon, Read &
sition in the financial world.
pacity. The bank loan was made
000,000

ebration
of the

948, which is at the rate of $630,-

Celebrates 75 Years
SAN

WavI«I Rinl# I

proaclies the end of its first year
of operation with great confidence
in the future.
The Exchange's
transactions,
for
the
first
six

San Fran. Div. of

revolving

group

commercial

States

credit to
of United
This

banks.

Railways and Har¬
Administration, the govern¬

South African
bours

department which is respon¬
sible for operating the railroad
network on which South Africa

Co. Inc.

ment

Form First In v. Co.

PROVIDENCE, R. I. — Stellerio
line of credit, which was arranged
in
the indus¬
by Dillon, Read & Co. Inc., will depends for long distance trans- Savasta has formed First Invest¬
trial history of formed with offices at 210 West
replace a similar credit of $10.- port.
the West,' ac- Seventh Street to engage in a sement Co. with offices at 111 Westcurities
business.
Officers are 000,000
which was first made
The Bank loan of $25,000,000 is
cording to
William'. H. Harry C. Polonitza, President and available in 1951 and has since for a period of ten years, and car- minster Street to engage in a seAgr.ew, Chair- Treasurer; Henry W. Cutter, Vice- been regularly renewed. The par- ries interest of 5%%. Amortiza- curities business. He was formerly
lrfan of the President; and Sidney H. Wyse, ticipating banks are: Bank of tion will begin on April 1, 1960, with McDowell, Dimond & Co,
Pacific Coast Secretary. Mr. Polonitza was forApa •
and
will be continued in half- and Gifford & Co.
C.

Stock

National City Bank of New York;

merly with Kerr & Bell.

Ex¬

change, It also

di¬

serves

rect-attention

William H. Agnew

of; the

.*•

one

potentially far-reach-,vK
in financial history^;,-;,;i. e., the formation of an exchange" V
functioning simultaneously on two *.
trading floors 400 miles apart. //./v

boldest and

ing; strokes

This

•

accomplished

was

Jan.

through the consolidation of
Angeles > and
the San

1957

Los

the

Exchanges.

Stock

Francisco

■

bringing the West's two big boards
under a unified roof, so to speak,

broader,:mar-

wider, and

much

a
.•

achieved.

ket. for securities was?

■'

■

volume, the number of new

-The

listings, new memberships and the

operation

harmonious
•»

are

proof

the consolidation has worked

well

All .of which
.emphasizes the- prestige of/this
marketplace in *the rapidly devel'oping West.
V : •%:
its inception.

from

v":

first stone

The

in : the

fdunda-.

tion

of the present exchange: was

laid

with

;-6f "The

the- formation

Wohl

ment

Board'* in the back
& PollitzL base-v
office on California Street, v

Sept.

18,

1882.

'Local Security
room

in those//

Growth

early years was slow and painful".
The era of wheat was succeeding
that of mines and cattle.
Indus¬

•

try was limited to a few powder /
•mills in the Bay Area and an oc- -y
manufactory; struggling

easional
for.

foothold.

.//•,

century Cal¬

By the turn of the

•A

ifornia's oil reserves were begin¬

ning

attract

Oil

attention.

'shares, nowvery
popular, met ;
with little favor at first, the board

-refusing to list them in 190Q.'Com-

trans-Pacific cable

pletion of the

stimulated public interest /

1902

'in

issues, whiclivimportant factor
in the San Francisco Market.

'in

Hawaiian <;sugar

soon

became

The Exchange was

closed by the

earthquake and fire of 1906. After

sessions were re¬
Scrassburger's home
at 2112 Jackson Street. The board
was officially reopened by candle¬
light on May 28, in the basement
of the burned out Merchants Ex-

week

sumed

New

so,

During 1956, Richfield's

California

change Building at 465
The market's

the

with

this

"of

hydroelectric

and

during

after

and

mines

power,

expanded to make it the most

modern deep-sea

industrials,

Oils,

was

development

industrial
coast

War

World

real growth began

Marine

California,

Terminal at Long Beach,

•Street.
*

Supery Terminal for super tankers

facility in the Long

agriculture

significant development that
undoubtedly promoted growth '
took place on Dec. 1, 1914.
Fol¬
lowing the outbreak of World War
"I in July, 1914, stock exchanges
throughout the world were closed
to prevent panic.
First of all the
exchanges with the necessary sta¬
bility and confidence to reopen,

Nearly

half-mile in length, the

One

jwas the San Francisco board.

/was

probably

the

This

event

first

f financial history to direct inter¬
national

the

attention

Ex¬

terminal will accommodate two

45,000-ton tankers and a
tankship simultaneously.
.

hoses have been
num

nate

giant

16,000-ton
Old-style

replaced with alumi¬

alloy connectors

now

provide a total capacity of

1,500,000 barrels to handle
ments of

and

ship¬

gasolines, jet fuels, fuel oils

specialty products to Richfield's

markets

Beach-Los Angeles area.

combined in one gi¬
gantic group to promote this rise.

tanks

throughout the West, as well

deliveries to the Armed Forces.
Even

this

new

terminal is com¬

pleted, plans are under way
even

larger facility at Long

for an

Beach—

evidence of Richfield's "years-ahead"

which elimi¬

planning to provide its

expanding

speed

markets with ever finer

petroleum

spillage and greatly

loading operations. New

steel storage

products.

change.

Serving the fastest growing in¬
area in the United States

dustrial
and
of

one

that is already

estimated

volume

all

10%

the source

of the total

registered national
the consoli¬

securities exchanges,
dated Pacific

Coast

Exchange

ap-

RICHFIELD a leader in Western Petroleum Progress
OIL

CORPORATION

(1464)

The Commercial and Financial Chronicle

Continued from page 24

Deliberate Blind

Spot?

Could it be that there is
of

Understanding the Big Debate
ington with
recent

whom

had

have

ized

labor—that

prices have
Criticizes Congressional
So

far

are

these

concerned,

mental

few

the

members

politically-

unpalatable facts that I have out¬
lined here just don't exist at all.
They do not deny them; they do
not

accept them.
They simply
ignore them; and go on searching
for

some other explanation of the
present inflation, in the hope that

may

prove

less

embar¬

rassing.
These

few

members would

to show that the current inflation

is rooted

body

Even

taxes

last

they

make

whatever
the

for

year

were

the

dollar—and

1950.

no' allowance

depreciation

totally

un¬

realistic not to do so—we still find
that the total dollar profits of cor¬
porations
been

whole have

never

large in any since 1950 as
then. And as a share of

they

were

the

total

national

have, declined

income

even

they
sharply

chare of the national income it has
increased from 64 to 70%.
But when

point these facts

opt, and inquire politely how fall¬
ing corporate profits can possibly
contribute

wage

our

and must be met if

inflation,

are

greeted by a deafening silence and

are

And when we point out that in

industry

whole the

Should

we
patiently mention
however, it fails to reg¬
ister, and our critics retort, in
great triumph:
* .;
•
;

that fact,

Administered

Prices

"Ah,

but

administer

you

your

prices!"

unpleasant things in life
be

"administered."

administered to

seem

Medicine

to
is

the reluctant

schoolboy.

So is punishment. And
it all sounds very horrible—even
though there is nothing new about
the

which

term,

has

with
some
political
nearly twenty years.

for

used

for

almost

what

are

adiministered

termed

now

been
success

point out that the

prices
people
pay
everything they buy

are

prices

—whether these things are

bought

from big companies or small com¬

panies,
baker,

the butcher, the
the undertaker—

from

even

critics reply that the steel in¬

our

is different
"concentrated"

dustry
highly

...

munity in the world—Industrial
America—is made up of indus¬

never, in any year, exceeded the
level which prevailed in 1940 be¬

hard

which

all

specializing in

field. And it's
industry, which
invested capital,

some

find

usefully

are

requires

began, and has been lower in each

which doesn't fall within the crit¬

the

last

six

1950, they
a
percentage
meaning.
The

than

years

was

that profits
sales have

say

its, they insist, is to take the latest
single quarter or single half-year
base and to

as a

ings by 2

multiply
the

our earn¬

be,

case may

in the optimistic expectation that
the resulting figure will correctly
reflect

total

our

profit for the

Then they tell us we should

year.

meas¬

these 50-cent profit-dollars

ure

ical

limits
call

prof¬

measure

large

ists

The

of what the word

the

art¬

"concentrated."

fact

right way to

this

blind

observe?

least

also

that

Now I

have

Department

Commerce

quarter of all of the

one

industries in the United States

highly "concentrated"

are

than

steel; but this impresses our critics
in

Concentration

all.

not

tions and
to

the

steel industry, they say, is increas¬

ing; and they prepare voluminous

There

critics of

percentage of all of the 60-, 80-,
100-cent

dollars

invested in

ing

so,

never

must

make anj'

over

the

but in do¬

more years;

have

business

our

past 25 and

that

never,

unions;

there

Supreme

critics

are

allowance for the

differing value of these dollars.
Then, having done this, we must
plot on a chart a dubious correla¬
tion

between

turn

our

percentage

investment and

production

pacity and
respect to

cross

percentage of

the

re¬

steel

our

ca¬

fingers with
operating

our

future

;rate. And when we have done all
this, they say, we will find that
our profits are going to be
simply
wonderful

and

really need

any

that

didn't

price increase at

all.
Now that is about
a

concept

ment

nomic

nonsensical

statistical

measure¬

prudent student of

affairs

eco¬

could

readily find
in a lifetime of diligent search.
Itris something like measuring the
size of

cow's feet

as a

percentage

of the number of teeth in

cow's

mouth, and correlating the result
the

order

color

arrive

the
at

tail

the

price

imilk!
But
our

when

dedicated

point this out to

critics

fifty-six

the

gen¬

tlest possible terms, they hear no
word that we have spoken, and

promptly take refuse in the charge
■—so widely publicized by organ¬

its

of
biggest

steel; and I

the

throughout

years

America's

history

—

happy, of course,

confess reluctantly,

But when I

with

and

some

injury to

cor¬

our

debate

any

the

which

intellectual levels that the

present

debate

certain

quarters

has

useful purpose
I

solve

never

flation

serve

any

history

the

for

time

first

produce less than
in

now

of the steel that is made

30%

America, where once we produced
66%; and that if this is what our
critics call "increasing concentra¬
tion"

hear

wish they'd tell us what

can

it—again,

they

not.

And

about

that

shall

problem

in¬

spreading
political
designed to conceal

screens

the facts.
march

Nor

pointing

can

whit by
of blame at
citizens.
To

one

finger
of

regard the

inflation

the

group

select

our

big

labor,

business, or organized
any other economic group

convenient whipping boy, and

heap calumny and abuse upon
this hapless victim will help us
not

all

when

understand

our

the

task

first

causes

flation.

Understanding

causes,

task

our

inflation

then

eager

in¬

these

not
to
punish
unwittingly and in
pursuit of perfectly

may,

curb

those

—

Debate between

political fantasy and economic fact
goes on, to the consternation and
confusion of
Now

all.

sure—or

least,

reasonably sure—that most of
this
talk
about
"concentration"
am

and
born

"administered
out

any

make frontal

American
whole.

why,
.

•

not

conscious desire
attack upon the

industrial

But

persist?.,

prices"

system

then,
,

does
'

......

efficient

tools

gathered

uting

the

better

country

and

forces

must

contrib¬

expanded

con¬

were

good examples of how important
are banking's relations with
gov¬
ernment.

Over the years
ahea<l> banks and
will have to continue to

bankers

develop

legislative

halls

better
understanding of their
functions and responsibilities. We
must

always be alert to the

dan¬

gers that

might tend to undermine
vitality and independence of

the

existing

systems.

chartered

can

banking

expept

con¬

tinued

drive for government loan
credit in sheltered

efforts

certain
to

other

financial

gain

competitive
advantage by using the influence

spent

inflation,

mone¬
central

These

markets, strong

pro¬

savings in this

occupied

discussion.

institutions

themselves,

the total supply of

proper

source of our present-day
inflation is to be found in the fact

that

have

wages

with this point in mind, I am
that

been

Congress

forced

ex¬

understand¬

ing responsibility and with regard
to a proper balance between what
contributes

production

The question simply is: what can
labor and business and all of the
of

the

American

people,

their collective wisdom and their

individual
And

the

two

activities, do about it?
mere

problem

itself

possible
to

The

money

have

of mass appeal, and
increasing re¬
to stabilizing policies on

sistance

the part of groups who
falsely be¬
lieve they are benefited
by creep¬

ing inflation. Banking shall have
make its position and record

first

—

and

of the
of

preventing

too-rapid
laggard

tivity
inated.

rise

excessive wage-rises in the future
is much easier to
agree, I

—it

think,

should not do,
than to determine what we should
do.
And
not

form

;

.i,.

clearly the thing we should
is to seek to impose any

controls

wage

people, whether
accompanied
by
These

twin

nations

controls.

have

world

recorded

history;

evitably

with

quences—but

are

been

inflation-ridden

the

our

these

price

controls

perpetuated

upon

not

throughout

and

almost

disastrous
never,

far

in¬

conse¬

that in

wages

fair

must

and

proper

never

forget
highly competitive busi¬

same

techniques

available to all. The

are

consumer

is price and service conscious. He
will place his business where his
tastes and wishes are best served.

Banking has
to

serve

a great opportunity
growing market, and to

serve

well.

Sound

public rela¬

tions—meaning action
—will go a

long

not

that

national

words

way toward meet¬

ing that challenge. It is

view

advertising, in

co¬

ordination with and in addition to
individual actions of local

banks,

could be the spark needed to
give
the proper glow to our embers of
effort toward

producing both the
have they halted
desire and appreciation of
people
fact, if you were to
toward doing business with their
examine most carefully the total
"own" bank.
hourly employment cost of United
States Steel, year by year, since
Finally, there is the challenge
1940, you would find it almost of management. We shall have to
impossible to identify the nearly gctntinue to explore ways of bring¬
seven
to banking the caliberf and
years when wage controls ing
were
in operation and the over type of management that modern
ascertain,

inflation. In

ten

when

they

were

scientific

not.

mand.

Public Understanding
So

the

here, I believe,
ability to bring about
a
broad public
understanding of
the problem itself.
And to con¬
our

tribute

that

widely

public

possible

understanding js

task of all of

the

us—particularly,

have said, the task of the mem¬
bers of this great association of

bankers

with

their

intimate

knowledge of the facts.
For
sure,

there is
no
doubt, I am
that if the American people

thoroughly understand this prob¬
lem, they in the course of their
normal daily activities will
pro¬

solution

inflation.
power

business

shall

emphasis

answer

lies in

are

methods
have

de¬

place

technicians

become

increasingly

mechanized. We shall have to
give
more
attention
to

salesmanship

and

market analysis if we are to
tap growing areas and segments of
a rising population. And in
many

other ways, we shall
to blend
thq human

be required
equation of

management and personnel with
the physical equation of facilities
and machines.

Yes, at this turn of the Ameri¬
Bankers Association year, we
an environment that is
in¬

can

are

triguing and challenging. It is
that

guess

re¬

receive

structure the

ness

They have the greatest

be narrowed

may

what

not

treatment.

ultimate

decade

shall

look

from

back

1957

"the horse and buggy
days" of

aspects

many

operations.

our

the world—the power of informed

desirable

increase
pos¬

between

improvement

and

broadest media will prove of
if the bank customer

does

lately

ad¬

degree in order that the
gap

uneconomic

and

little value

and credit

productivity to the greatest

inflationary

look at the other side

picture, however—the task

Association
has:* beer*! greatly ex¬
panded. But the finest techniques
program

now

most

con¬

American;/ Bankers

vide the ultimate controls and the

much attention:

approach—would

sible

the

suggest

approaches—in

which

policies
ceived

statement

{seems to

those

real

increasing productiv¬

Proposes Anti-Inflation Program

rest

sure

many

rapidly than productivity,
this does not mean that organized
labor is a public enemy, or that
pected to act with

find

ity.

the leaders of labor cannot be

would

opportunities to make
tribution to

can

over-

mary

dition

the Big

When

have

far more rapidly than we

grown

have—that

installation

without,

to America.

this

smoke

achieved

can

convinced

any

maneuvers

and what it takes out-

they

develop¬

if these large capital sums

But

the

And surely we can also ask wheth¬
er

labor

us—that

the

siderably. And here, I think, is clear. We
must carry forward the
with out criticism when even an where
Congress can wisely and
occasional highly respected Con¬ fruitfully serve the welfare of all message of fiscal sanity and mone¬
tary stability in the interest of the
gressional investigating committee by acting to encourage saving on
welfare of all the people.
•
is not above having its
j
friendly the part of our people, and by act¬
critics.
Fourth; There is the matter of
ing to protect and enlarge the in¬
relations.; : As
individual
But we can ask, I think, that centive to invest these savings in public
banks rand, as an
association, we
when criticism comes, it be well productive enterprise. For if exist¬
are
hard; at work at this
job of
informed, and reasonable, and— ing and prospective legislation
telling our story to the public. The
hopefully—that it be constructive. were to be examined carefully

ing share of the total steel market

from

and

are

Court;

porate pride, that throughout these
fifty-six years
our
competitors
have been taking an ever-increas¬
away

money

Expand Savings

and I know of
no good reason
why businessmen
should expect to live in a world

of far

producer

it still is.

that

cow's

been—

has

financial ability of
enterprise to risk vast

duction;

labor

that U. S. Steel and legitimate ends, have con¬
largest producer in many tributed to its progress.
of the leading steel product lines
So if
as
the London "Econo¬
.—a
disclosure
that
will hardly mist"
concludes, and as I am forced
come
as
surprise to anyone in by the facts to conclude—a
pri¬
Steel

and

the

view of the fact that United States

ment

ex¬

—

sums

foreign policy;

critics

are

the

and

industrial

critics of domestic poli¬

are

there

cy;

the

banking and

control

point

rq^i

task will necessarily
management,
for
it
largely depends upon the willing¬
ness

tary

diligent

upon

It is practically universal.

are

there

reports to show

part of

by¬

free way of life.

our

most

government. That labor, if it

fall

democratic institu¬

our

the

page

monetary and fiscal mat¬

ters, in which

task {hat

blue¬

necessary

invited.

pected.

in¬

greatly to improved productivity,
do not doubt; but the
greatest

any

Healthy

American

productivity is

enthusiasm, can—through its own,
on-the-job efforts^-still contribute

attributes of this

take—criticism.
as

effort

from

Planting the Roofs for f,
Banking's Development
ings

national

command

and

rightJa criticize. In fact,

Continued

these

approaches the problem with

country is its willingness to give—
and

intelligent efforts of all of
us—labor, management, bankers

seeing

suggesting by

grlat

difficult

and

Or does

that the critics of business

of the

one

as a

according

matter

,...

most

combination

crease

will

forestall

spot

Now

improve¬

any

and

two approaches.

what is only too evident and what
is
there
available
for
all
to

that, of course, is very
clever of them; for so many of the

triple

productivity is
political moment?

And

fore the present cycle of inflation

and

berry pie.
product of

Concentration

found

wage costs by

ment
of

increasing

criticism is

and

tries

double

means

profit rate in relation to sales has

it be that

second,

supportable by rising productivity.
And
presumably the final and
only
practical
answer
will
be

Is this blind spot
associated with the

way

sional debate the wage-cost phase
of this inflation problem?
Could

stay

industry—
our
critics promptly shift their as if that
were necessarily, and of
ground.
itself, a bad thing.
Steel profits, they say are differ¬
Now the fact is, of course, that
ent. Steel profits arc inflationary. the
most successful industrial com¬
the steel

quarters?

some

attractiveness—politically speak¬
ing—of not bringing into Congres¬

in business.

But when

During the same period, let us
note, compensation of employees
lias risen by .$87
billion; and as a

our

costs are only a
to^al costs, and that all
other costs are rising
too,

these

•—from 9% to 6%.

;

that

part of

profits.
But
the
fact,
of
course, is that total corporate prof¬
than

few

senior

legislative
something of a puzzle¬
me; for they fully underr

ment to

squarely in rising indus¬

after

these

processes

are

stand

trial

its

three dollars.

again, I find that the

members of

smaller

for

gone up

And here

Committee

tive

every dollar
of direct increased wage costs, our

contact.

blind spot in certain legisla¬

The

approach, would be to avoid fu¬
ture wage increases not
clearly

kind

Thursday, October 3, 1957

...

The

public opinion; and they have the

ment

greatest stake

fertilized by the best thinking that

future

planted. They

this Association and
ers

power of the dollar.

And that is why it always seems

the

elim¬

outcome

our

this battle against the loss of the

produc¬
or

the

are

purchasing

the

and

roots

true, in this great republic

ours,

problem
more

that

once

any

national

is^eally understood, it is

than half solved;

all

industry.

that

years
and

shall

harvest

reap

till

determination.

bumper

bring

confident

progress

ahead

being

banking lead¬

the country can

over

our

develop¬
are

over

with

the

vision

(1465)

The Commercial and Financial Chronicle

Number 5678

Volume 186

LETTER TO THE EDITOR:

Banks Must

Help Fight Inflation

Shull Avers Gold Devaluation

By CLARENCE E. MANION*

Would

Member, Doran and Manion, Attorneys at Law, South Bend, Indiana
Former Dean,

College of Law, University of Notre Dame

Manion declares banks must face

Mr.

of dollar devaluation

matter

find

savers

to and constructively act

spending

Writing from New Haven Conn., Mr. Shull opposes proposal
for gold. Asks Dr. Ernest
R. Gutmann if he has "given thought to what cutting the

to raise the U. S. official mint price

„

hedge against

money as a

value of the dollar in-two would

This is said to entail effectuating not merely budget balancing but,

inflation.

also, ending Federal extravagance, confiscatory taxes,
j*

the

savings account

owners

and informing 90 million

Editor, Commercial and Financial
Chronicle:

present-day unpleasant facts.

morenecessary

than it has ever been at any

time

destructive infla¬

to stop

are

now

country.'* If

in the history of our
We

•

effectively
same

the

accounts 4hat their pru¬
is being undermined

savings

spending. A

thrift

dent

pavings ac¬
is the

first step in
-

tion of invest-

;

Let

Dr.

Manion

jobs

for our

created

the

rapidly increas¬

in* savings

posit

accounts.

ings
the

depositor than simply raise
rate of interest on savings.

ceived

in 1952

was

re¬
not $1,000 but

$614. He thus lost $136 by buying
and holding a United States Sav¬

prospective savings depositor ings Bond. Furthermore, the low¬
interested in maintaining est income-taxpayer would have
the value Of the dollar that he been required to pay $50 of the
saves than he is
in the rate of $1,000 he received in 1952 for fed¬
interest return that the savings eral incolne tax, which further de¬
dollar earns. If he can be sure pleted
his net-value return on
the Treasury Department
that by saving his dollar, rather what
than
spending it, he can stop had assured them was "the best
dollar - devaluation
and
event¬ investment" that any Citizen could
out dollars with the make.
purchasing power of those

taxes.

When

Benjamin

ing

aollar

dollar saved is at least 20%

than

he will

put

in,

will

continue

spend

for "things"
against inflation."
money

End

otherwise

have;

his

"hedge

Present
we

cannot

effects

experience
avoid

ard

must

Frederick G. Shull

the

article.

only

reference

to return to the old Stand¬
the old basis"-—a statement

earn anywhere from $1.20 to
which seems entirely inadequate
depending upon his income
to express any views I hold on
tax bracket. Anyone who can save
this subject. The "old Standard,"
money now and who does not do
of course, was a dollar valued at
so is
facing an enormous handi¬
$20.67 a fine ounce of gold, and
cap in replacing each dollar that
he allows to slip through his fin¬ redeemable, on demand, at that
fixed
value; while our present
gers. I dare say that if this fact
standard—if it
may
be
graced
were
properly
explained
and
with such a name—is dollar val¬
repetitiously illustrated in bank
ued at $35 a fine ounce of gold,
advertising it would increase the
but not redeemable, on demand,
volume of your savings accounts
at that value.
and at the same time build effec¬
Instead of introducing all of his
tive popular pressures to reduce
the most oppressive tax burden mathematical equations—both "de

$11

that
ever

the

American

people

had to bear.

shows that

extravagance

merely by balancing the federal
Solving Price Inflation
budget. Before the Senate Com¬
Banks must^herefore face up mittee, Secretary Humphrey ad¬
to the matter of dollar devalua¬ mitted that federal spending is in¬

FAYETTE V ILL E, Ark.

—

Rauscher, Pierce & Co., Inc., has
opened
Otasco

branch

Building

office

agement of Donald Trumbo, Jr.

and do something construc¬ flationary whether the budget is
tive about it. To do something balanced or not. But if the value
constructive
about
progressive of the dollar is sliding downward
dollar-devaluation,
banks
must inside a balanced budget, what can
work actively and effectively to we expect to happen to that value
reduce Federal Government when and if federal deficit spend¬

the

nation

this

of
500

billion
of

form

own

dollar

bank

has
Dr.
Gutmann
given
thought to what cutting the value
of the dollar in-two would do to
the

owners

of those

accumulated

saving's? Knocking 50% out of the
value of those dollar assets would
cure

nothing, but it would almost
result in "killing the

certainly

patient."
Very truly yours,'

spending, which is now the con¬
trolling cause of inflation. If this
puts the banks

into politics, then

ing

resumed?

Senator

2009 Chapel

Street,
Connecticut,
1957.
'

New Haven 15,

Sept.

26,

Two With First Southern
CSoccial to The Financial Chronicle)

ATLANTA, Ga.—Fred M. Jack¬
son

and Charles R. Yarbrough are

now

ern

connected with First South¬

Corporation,

Peachtree

Ponce de Leon.

ness

activity

now

goes

YEARS OF GROWTH

Byrd

IUKITISID

points oi't t^at if American busi¬

back

merely to the high level of 1955,
so be it.
the present spending program of
Any banker who doubts that
Federal
Government
will
the situation of the savings dollar the
leave it $"l3-billion
in the red.
is serious enough for political ac¬
What $13-billion worth of deficit
tion should read the reports of

Committee now inves¬

the Senate

tigating the financial condition of
the United States. Last June, Sec¬
retary of the Treasury Humphrey
submitted some interesting fig¬
to

this Committee. He

true,

and

assuming

average

this Sl^-bilinterest earned yast year

savings rate of 2%,
lion
was

completely wiped out by pre¬

vailing inflation.

merely point out that this pros¬
pect will not make a goo* selling
point for the increased thrift on
the part of all American citizens
that is so vitally necessary at this

sociation,
1957.

fact to the

attention of your de¬

positors. There are many more of
these depositors now than there
were voters in the last presiden¬
tial election. All you have
or*er

reverse

the

to do in

dollar-de¬

bef«*-» stroying extravagance of the Fed¬
Savings and eral Government is to tell the 9083rd Annual
Bankers As¬ million owners of your savings ac¬
Atlantic City, N. J., Sept. 23, counts the unpleasant facts.
To

by Dean
the Annual Meeting of the
Mortgage Division
at the
Convention of the American
♦From

talk

34th & Broadway

Building

KANSAS CITY

spending would do to the real val¬
ues
of your savings
accounts I
leave to your own imaginqtiion. I

said
approximately
90-million savings accounts in,the
banks and savings and loan asso¬ time.
Bankers have a le^al obligation
ciations of the country. He esti¬
to preserve the "auantitv" of their
mated that these accounts earned
depositors' dollars, but thev also
$iy2-billion in interest and divi¬
have a moral obligation to guar*
dends during the past year. In the
same hearings, it was shown
at the quality of those dollars as
well. If
confiscatory taxes and
the purchasing value of the dolllar
senseless federal spending are de¬
dropped
two cents during the
same
period and is continuing stroying the value of your sav¬
ings accounts, vou must call that
to drop at the same rate. If that is
ures

that there are now

INC? © M IPOM^LTIE ID
603 V. F. W.

11, MISSOURI
•''

•

Increase

HIGHLIGHTS

12/31/47
12/31/47

System Statistics

ended)

$8,266,956

168,308

422,061

$4,150,000

$21,000,000

$110,520,624

328.3

5,376

110.7

14,441

93.8

.............

$25,803,745
2,552
7,452

150.8

406

V
"

Investment

Employees
Stockholders

5/31/57
285.5%

$31,867,137

•

Largest in Our History
Plant

5/31/57

Operating Revenues (12 mos.
Telephones Served
Construction Program
1957 Estimate $21,000,000

Results
Net Income (12

mos.

937,860

$1.73

$.80

$1.20

$12.33

$17.87

Outstanding (12

ended)

Earnings Per Average Share (12 mos. ended)
Dividends Per Share (12 mos. ended)
.
.
•
Book Value Per Share

1,761,839

$1.56

224.8

$3,046,329

598,353

ended)

Average Number of Shares

.........

194.4

10.9
50

44.9

United Utilities, Incorporated comprise the second largest
States. Approximately 87% of the consolidated
operating revenues are derived from telephone operations. The balance of the operating rev¬
enues are obtained from subsidiaries engaged in the electric, gas, water and LP gas businesses.
The telephone subsidiaries of

independent telephone system in the United

FREDERICK G. SCHULL

tion

TEN

de¬

for,

White, Grover

assets

Daniel Webster,
John Sher¬

Andrew

than

posits, government bonds and life
insurance
benefits * already paid

Thomas Hart Benton,
man,

people

Adam Smith, Alexander

ties being

patient." By "It" he evidently
$35.00 an ounce. But since

the

quoted were wrong in their opin¬
ions as to what constitutes sound
and honest money—said authori¬

the Hamilton,

the man¬

under

the

have jure" and "de facto," as Dr. Gut¬
mann refers to them—I wish he
had stuck to my story and pointed
out
wherein
the
authorities I

Rauscher, Pierce Branch

you re¬

means

and

letter

article is that Shull "pro¬

poses

assume

price of $70.00 an ounce, and hia
current statement, "It is a method
which cures the disease by killing

Gutmann's

Mr.
to

the fact that Dr. gutmann
been promoting an official

has

portant

Gutmann

can

fer to

any

tween

place eveiy dollar that he spends,
the
American
income-taxpayer

the inflationary

federal

W. Kemmerer of Princeton,
today's Dr. Walter E. Spahr of
New York University. If Dr. Gut¬
and

considerations." I

connection be-

dollar saved by him would
be better than $10 made. To re¬

Extravagance

Federal

unable

detect

W. Mellon,.the late Professor Ed¬
win

a $70.00 gold ounce, unlike
$35.00, would not require defla¬
tion, kill the patient, nor run
counter
to
political and social

the

in the highest income tax bracket
as
Franklin would probably be,

then

with

mentioning
my
article, I

dollar made, and if he were

ually draw
same

of
But

other than do¬
honor

The
is

earnings in federal

our

made," he spoke the
simple truth of his day and gener¬
ation. But,(if Franklin had lived
today he Would observe that a

But therefore, what this investor

the sav¬

banks must do more, for

Prospect"
carriedi'n

general price level rose more than
00%. - For
practical
purposes,

sav¬

Savings

that

Franklin said that "A dollar saved
a

prove those gentlemen
all I can say is that I am
glad to be in their company. :
*
In your foreword to the Gut¬
mann letter
you say: "Dr. Gut¬
mann
contends
redeemability

and

22.

income

wrong,

issue

$750 U. S. Treasury "E" Savings
Bond
in
May of 1942 received

should be encouraged by the

ers

Under the pres¬

of these circumstances,

spect

your

Cleveland, Henry Cabot Lodge,
Theodore Roosevelt, Andrew Car¬

mann

Retro¬

Aug.

Senate Committee

higher rates of interest now being
offered for the money they de¬

population.

sure

writing that letter my

to 91%

$1,000 for it on its maturity in
May of 1952. This was a dollar
gain of $250 in interest. However,
in that same ten-year period the

ing

his

"The

virture of the pres¬

uses as

Stand¬

ent necessity to surrender from 20

well.
same

article

constitu¬

Gold

suggest

Banks make

hearings the following fact is dis¬
closed: The man who purchased a

can

new

capitalV;

without which
there

Bonds

general rate of

economical

Explain the Facts

gance.

the accumula-

ap¬

issue of Sept. 5,

your

for

excuse

ard:

What is true of savings ac¬
counts is true of federal Savings

ent

to raise the

The time has

tional government.

by Federal Government extrava¬

their country.

Dr. Ernest R. Gutmann

interest

available means

the real value of their
savings accounts. The first step in
such a campaign would be to in¬
form
the
90-million
owners
of

(dollars that
ithey are now

count

pearing in

come

and bigger savings

to preserve

and

campaign
for
accounts
time they fight

and
more

owners

negie, Woodrow Wilson, Andrew

Letter-to-the-Editor,

their money, they must also

save

conscientiously

cannot

and employ every

save more

save

the destructive moths of inflation

must

citizens

Bankers

unless at the

tion, addition¬
al millions of
be induced

Banks Must Fight Inflation

do to the

accumulated savings?"

In his

Thrift

Adversely Affect Savers

(1466)

The Commercial and Financial Chronicle

from first

statutes of New York and Massa¬

of its primary pur¬
poses was to have national bank
notes to take the place
o£#state
bank notes; and To the latter end,

Sound Money

bank

period of severe trial and tribula¬
tion, whether it can uncontrolled
inflation or a severe depression,
politics will again enter the pic¬
with

page

Politics

ture

safe

chusetts,

Continued

coin

safer

metal

enacted

the

than

nation

for

the

government to print "greenbacks,"
Alexander Hamilton said;

issuance of money,

revised and

was

between

bank. Their first

States.

Though

emissions,
under a general authority, might
As I have said, the Colonists,
have some advantages not appli¬
prior to the Revolution, had no
cable, and be free from some dis¬
banks; neither did they have a
advantages which are applicable,
metal currency of their own. The
to the like emissions by the states
Pilgrim Fathers, for instance, used
separately, yet they are of a na¬
the Indian wampum for currency
ture so liable to abuse, and it may
until Indian squaws with the aid
even
be
affirmed so certain
of
of iron

tools did

ing business in

such

flourish¬

tion that it lost its value
In

the

early

the

money.

the

anniversary

settlement of Jamestown

cies, there is almost a moral cer¬
tainty of its becoming mischie¬

and

operation

anniversary of the birth

one

statesmen

America's
Alexander

—

The stamping of paper is an

vous.

much easier than the

Hamilton.

Those who wish a clearer concep¬
tion of the part played by Virginia
in
the
birth
of
a
new
nation

Those

who

wish

even

clearer

carried

conception of the present
universal recognition of banking

rendered

tended

of the remarkable

far

occasion

career

state of

of Alexander Hamilton.

the

and

ceived

over

million votes.

one

history

milestone

Reserve Act
sion

banking

1907,

1913.

when

The
many

depres¬
banks,

especially in the South, resorted
to scrip because of an inadequate
supply of currency, pointed up the
necessity for a better plan to as¬
the

production of sufficient
do the money work of
The Aldrich

Monetary

appointed

1908

studied

the

by
the

prob¬

Aldrich

presented

Senate to create

System.

absolute

bubble, it
likely to be ex¬
degree, which would

That

bill

the

Federal Reserve

bill

was

defeated

through the combined efforts of
the big city bankers, principally
of New York, who exercised great
control

things, incompatible with

and

the regular and
prosperous course
of the political economy."

the

over

nation's

credit,

by state bankers because the

unified

system

supervision.

But

Pnn.ri

Banking Law

anchored

Changes

Last

took

•

when I under- codifying
the
credit laws, I was

summer,

the

job

banking

and

-g

and

laws.

existing

(]icates

credit

()£

mif r:e.
The

tion
of

.On

had

been

since

the

1791.

first

The

eliminate

job

which encumbered Title

Federal

Code.

While

Bill made over 100

Act

Senate

isting laws, most of them
did

not

touch

the

lative
hoH

issues,

voting

and

nvotnAiieh;

had

bank

hnftn

cattle

and

remained

for

the

little

pro(jucjng country in the world,
Lydia's King
Croesus
(560-546
B q^ accumulated so much gold

of silver,

money. That was about 700 B.C.,
when Lydia was the greatest gold-

shekels

wheat
But

mergers,

ntorl

wealth

country of Lydia to invent stamped

cumu-

previously been acted

iviicl East coin geared to the value

fundamental

such

principal medium of exchange
Egypt and cattle in the Middle

of>()j.

issue of sound money and supply
controls. Some of the most controversial

•

Midianites

in ex-

were

relatively minor character and

£asb gome years later when Joc«nh'«
seph's T\rr»fhrpr1 snlri him into ranbrethren sold him into cap¬
tivity,
they
received
from
the

acts

12 of the

the

much

was

changes

metals

.the

obsolete

many

5,000 years ago

certain

in silver. At that time, wheat was

codifica¬

Banking

;

history

back

\\f C

never

—

healinSs-

Llse

civilization.

recorded
as

in Ur on the west bank of the Eur
pbrates,
returned* from
Egypt
nearly 2,000 years B.C., he brought

prepared,

big job, of course, was to
t hp
IQ
CH1PP
the' financial laws since

codify
there

far

distinguished from pure
barter, originating "with the Bab^
yionjans 0£ the Euphrates Vallejh
^hen Abraham, whose home was

Committee,

institutions.

Bill

primitive

m01iey as

national associations of

and

mature

evjdence

With

tentative

will

money

gold and silver coins in-

find

banking and credit,
wonderfully fine, able, and con-

banks

primitive

(>£ minted

changes

based upon the recommendations of all federal agencies con-

the

the character of

background

were

Advisory

subse-

not

was

people while the wide circulation

banking

Those

gold

and the conditions of the

users

sjlovv

the Senate approved, in substaritial form, the changes I iecommended

eVjdence

study

and

ttje

Community in which it is used. A

that
dual
system.
The
Senate
Banking and Currency Committee

and

quently debased or inflated.
Money is a social institution,
antj the manner in which it is used
j[s

careful not to interfere with

credit

paper money

Current

,MU(' ,M,
?
/'
^ome °^.a^r01f '
<° control of money which has
^een wholly free from political
interference nor any instance in
an/ currency that was not
gold minted coins or

carefully preserved the dual
banking system. The dual banking system has the unqualified
'
*
support of the present Federal Re-

Carter Glass's Federal

was

Congress
banking law

and

scientious
next

for

national

cerned

Rate of Carter Glass
The

Senate

inflated and artificial

private ad¬

demands

banks,

new

...

history of banking
legislation, as we have noted, nas
*
een free from political intereriee,
ew.
lssJ-ies> over
s0, lon/* a Penod of time, have generated more bit-er political ammosities than the issue of money
and its value. I can find .no refer-

between member

turned down that recommendation

very

the

people at all times for a
adequate money sup¬
ply." He lost the election but° re¬
stable

Commission

would at least be

a
necessary and vital part of
ouf economy should refresh their

memory

the

highest

lem for nearly four
years; and on
the basis of that study, Senator

resource, to

with

the

of the govern¬

powers

the nation.

avoid, as much as pos¬
should visit the Jamestown Festi¬
sible, one less auspicious to pres¬
val, which will continue through ent popularity.
If it should not
November.

this:
of

whole

money

emergency to indulge itself too
far
in
the employment
of that

one

ment to the control of

venture

sure

laying of taxes that a government,
in the practice of paper emissions,
would
rarely fail in any such

greatest

duties and

be shown in

but in great and trying emergen¬

the 200th

government will

trusting itself with the use
of so seducing and dangerous an
expedient. In time of tranquility,
it might have no ill consequence;
it might even perhaps be managed
in a way to be productive of good;

This year our nation is partici¬
pating in two memorable celebra¬

350th

banking system
surrender

never

Virginia

Colony,
wampum
was
used for trading
with the Indians; but tobacco was
the principal medium, of exchange.
There
again overproduction de¬
stroyed its value.

tions—the

national banks: "The fundamental
vice which underlies the national

being abused, that the wisdom of

produc¬

wampum

paper

Money
..

will recajl, of course, that the
Banking Acts of 1933 and 1935

1865

ers,
describing them as concessioned usurers and saying of the

by the government of the United

bank, The Bank of England, was

chartered in 1694.

provide

and

thereof

you

and 1891 ex¬
"The emitting of paper money
ceeded the number of state banks.
by the authority of government is
In
the campaign
of 1892, the
Not many bankers realize that wisely prohibited to the individual
presidential nominee of the Popu¬
it was 87 years after the first set¬ states, by the national constitu¬
list Party, General Weaver, made
tlement at Jamestown before even tion; and the spirit of that prohi¬
bition ought not to be disregarded many bitter attacks against bank¬
a

enact

under

banks

of eliminat-

purpose

nonmember

should

Colonial History

the British had

for the

and

re-

history and also for the last
time,
the
number
of
national
banks

of state

supervision

ing competition

our

of its value.

condition

effective

and

1865, a 10% tax was
imposed
on
state
bank
notes,
which, of course, ended their use
as
money.
For the first time in

gold or silver was a far
to expand the credit

way

needs

respect to banking, the
and the fixing

when the Act

redeemable

notes

one

Thursday, October 3, 1957

...

the Senatem separate bills.

that

his

-v.

become

name

synony^-

"^Considerable concern, especially
Aldrich bill virtually would have
mous
with
great
wealth.
But
be recalled that when
'from southern state bankers, was
wiped out the dual banking sys¬
minted money as we know'it toWashington assumed the
Later, I shall point out how
expressed to me relative to the
tem.
day rcaIly dat6s lrom the Roman
presidency of the new republic, fundamentally right Hamilton was
provision
m
thejfirst.- tentative Emperors whorejoiced to have
Glass's bill the following year
he selected, as his
draft
Secretary of inr stressing the dangers of paper
prohibiting absorption of
carefully preserved the dual bank¬
|beq* likenesses imprinted on gold
State, Virginia's political philoso¬ money. It is an evidence of his
exchange; but .that was. dropped.
pher, Thomas Jefferson, and as superior political wisdom that al¬ ing system, while at the'same time Some concern was expressed con- ;cojns ;^ Such coins, called "sacr$
his Secretary of the Treasury, New though he grew up in a
mo}ieta," or sacred money, were
greater
flexibility * to cerning the
colony providing
meet changing needs for
York's
pndeeted from debasement, and
soldier
and
money on mergers. pioyision of the Bill
statesman, where the Mother Country had
But I believe most,
and
Alexander Hamilton. Incidentally, prohibited the coinage of
long term growth of the if not all, state bankers now favor even after the fall of the Roman
money
they were to become the symbols- and although his previous train¬ economy. It provided central fa¬ that provision in the Senate Bill Empire were eagerly sought aftef
of
two great
political parties— ing and experience had been that cilities for rediscounting to sup¬ •for two reasons: (1) There can be <through0ut the - civilized world,
But not so lhe silver coins ofdhe.
Jefferson, the apostle of state's of a lawyer and soldier, he clearly ply additional money When the no ihei
gei of two or mA state
i|omanEmperors,which were de.rights; and Hamilton, the apostle recognized the fact that the only need arose and for meeting paper banks without
staleautWfrity. It is
of a strong central
libci.ately debased to the point
currency needs. In the language
government. sound and dependable
currency
only after the state an^iority has
he
But there was one item on which was
of the Act, it provided a means
ihey logt their value,
one
anchored
to
gold, ac¬
agreed to the rnergei^roposal that
■
;
«
"to prevent injurious credit ex¬
these two great men of
the
differing quired by the government with
FDIC, if they are, insured
French Franc
'
political philosophies agreed; the revenue from taxation.
pansion or contraction" and thus
banks, cam enter the picture. In.
jn modern tunes, national curto
combat
the
boom
and
bust other
namely currency. Jefferson stood
words
that
gives
a
full rencies of
recognized value have
cycles which too frequently had measure ot state contiol.
firmly with Hamilton against the
Banking
(2) Th.e been anchored either
to gold, silissuance of paper money like that
afflicted the -American people.
second
reason
.why many state
There was great opposition to
To carry out its functions with
of the Continental Congress which
ve,y or to gold and silver comr
bankers
It

will

George

•

became

the-

depreciated

wasn't

worth "a tinker's dam."

establishment

bank.

But

favor

national

Hamilton's

respect to credit conditions, Con¬
conferred upon the System

persuasive

gress

Hamilton," argument
prevailed. The Congress
preferring gold, agreed to Jeffer¬
voted

son's

to charter the

suggestion about bimetal¬
United
lism, with silver to be coined at;
the

ratio

American

dollar

gold, the
the

coun¬

terpart of the Spanish dollar, and
American currency to be in
governed by the
decimal
system rather than the arbitrary
the

units

units of the

English system.

Hamilton

Dec.

13,

House

of Representatives what has since
become a famous report on the

subject

of
that report,

national

Bank

1811.

Five

bank.

Hamilton, speaking

banks, said:

the

most

bank

government

You
this

will

and

owning

recall, '• of

second

Bank

with

20%
the

critical

also

it.

has received assistance from those

established among us, with which

chase

lend

create

government

money

bonds

the

and

government,

Congress
passed
the
National
dispensed."
Banking Act of 1863. While that
arguing that the issuance of Act largely followed the
banking

it could not have

was

the

open

granted

market.

thepower

Reserve

notes

discounted

commercial

with

paper,

provided, however, the gold back¬
ing

was

Under

not to be less than 25%.
a

subsequent topic of
I shall
indicate how

"Money,"
Glass's plan
on

sound

expand

basis

was

Senate

merger

Bill

pro-

bined.

that

they recognize.4hat if Congress
doesn't approve the proposed- coptrol

bank

approve a

and

thus

confer

the

would
and

include

national,

all

the

and

currency
to a large

extent nullified in 1933 by politi¬
cal pressure to help farm
prices

The
and

Bill

credit

,.r

paj)er

state

Then,
as
a
war
France started issuing
money. In the last 20 years,

chasing

unin-

■

a«ainst

as
..

was

passed by the

comparable

system,

sources

and

eliminate
of

friction

national

cilitate

the

some

1946

work

bank lawyers in

bankers

Bank

paper

are

one

that the House Banking and Cur- '
trying

has

then

postponed action until next

their

currencies

year

after hearing only three fed-

Meyer

Federal

Reserve

Board

recommended to the Senate Bank¬

ing and Currency Committee that,
on account of the then
alleged un¬

eral witnesses. Early

hope action
this

can

legislation.

next year, I

completed

ex-

military aid

those whom

been

years

ago,

difficulties

rehabilitate

allies

the

•

major

our

ings until late in the session and

government

shall Plan started nine

disappointed

rency Committee

Reserve Board to the Treasury.
In 1932, Governor Eugene

England

used

to 67 nations. Ever since the Mar-

delayed its hear-

now

engaged in

now

the

Federal

pur.-

manage its currency
basis and to devalue

by the printing of greenbacks and
subordination of the

and
the

tending financial

and

the

Bie pound^ sterling from time to
time. We

finding what the

was

the

nationalized

1914.

■

banks, and will fa-

federal bank laws are.

Naturally,

will

state

instrument

present

between

deval¬

of ¥2 of 1 cent

power

Senate last March will strengthen
.pr0gram
the
Glial
banking
serve

for that

virtually

the French franc has been

codify the banking

laws

Lane

remained

ued 11 times; and its present value
as
compared with its value in

course, *1914

insured

period

unchanged.,

Justice

banks,

currency

anchored to gold,

was

measure,

jurisdiction

subject upon
Department.
Thai,
on

instance, the

lor more than .100 years

^rior to 1914
entire

by the Justice Department to apply antitrust laws to bank mer¬
gers

For

ance

and the value of lhe

by banking
undoubtedly will
Bill strongly sponsored
mergers

authorities,

gold
backing
of
40%,
later
changed to a backing of gold cer¬
tificates, government securities,

re¬

institutions to pur¬

issue Federal

a war meas¬

(1)

States became the political
target

ure

cir¬

require:

within limits, the legal
requirements applicable to

curities

United

Congress to

combination
may

use

rate") deemed appropriate
by the Federal Reserve; (3) to
purchase and sell government se¬

that

of President Andrew
Jackson.
could not induce

for

count

the

course,

powers

national and state member
banks;
(2)- to make loans to member
banks at the rate of interest
("dis¬

peal its charter, but lie did with¬

conjunctures
of the late war, as since the
peace,

reserve

later, however, Con¬
chartered another Bank • of

"Trade and industry, wherever
draw from it the
deposits of all
they have been tried, have been Federal
money and exerted
indebted to them for important
enough influence to keep Congress
aid. And government has been re¬
from
renewing the charter when
peatedly under the greatest obli¬ it expired in 1836.
gations to them, in dangerous and
From that time until
1863, there
distressing emergencies. That of were
only state-chartered banks
the United States, as well in some
and private banks. As

change,

op¬

and

United States—this time with
capital of 3 Mi times as large as

original

cumstances

the

years

gress

general

singly

the

Then

renew

partly on account of the opposi¬
tion of the state-chartered banks.

Alexander

to the

the

Money

1790,

until

refused

chapter, partly on account of
position, in general, to banks,

the

Hamilton submitted

States

Congress

three

the

vision

allies

hoped to have
the

and
^s

instability of

and

the

lack

convertibility. In ether words, the
currencies
which

felt the

most

nations

with

have been dealing have

impact of politics to their

The Commercial and

Number 5678

Volume 186

(1467)

Financial Chronicle

appreciation and enjoy¬

press my

standpoint of living is at. an all-time high. For Continued from page 22
ment in working with the national
M,r: 11, consecutive montlis that index
banks individually and with the
.= ".!■. u. • has
adyanced.^ By some that is
National Bank Division. You are
American Currency History Vv. called ^creeping
inflation. Some
a great aggregation of banks and
We have maintained one of the claim it is an indication of the fact
bankers
and
are
doing a fine
soundest currencies of the world, we do, not have a stable dollar,
work. Our office appreciates your
because prior to 1934 it was an- With respect to current prices, my
willingness to cooperate, to rechored to gold and even after go- conclusion Jis that the effect of
ing off the gold standard, the gold currency
expansion on prices posited. The growth of the fund I know you all share, for the great
t
holdings of the Treasury have re- since we left the gold standard in is just about keeping pace with work Randy Burgess has done for and to ^lve us ttie bene*1* of your
mained the largest in the world.
1933 has been a relatively minor

detriment from the
soundness.

FDIC's Role in

Nation's Bank Economy

spirit,

Ce*J s^ggestioi?s j*1

fully

not

were

with the Treasury Department in
the growth of coverage afforded, the country during his service

gold one. In managing the supply of
paper money, the Federal Reserve

Praises Individuals

1837 when the gold
content of the dollar was adjusted
until

basis

Board has done a good job.
to 23.22 grains. Incidentally, the ^ I would list as major factors in
silver content of the dollar has .the current price inflation the folbeen changed since

never

1873

duced
called

bill"

money

of tsUvert
dollars. Senator Jotm W. Daniel
.of .Virginia;
an
eloquent free
silver T advocate, ' said
that bill

Congress
tread of a cat."

silent

the

—

association

and

bankers

hold

Cook, and the late Maple T.
oleasure and a

sPeildl1®a11 Sf'ernment agen- tainedoperations in everyefficiency
a high level of way. The
in its
dies-national,, strife, and local.
death of Maple Harl a short time

Its mortgages." ;

partners.

Senate voted for the

•;

fact

friend

wish give the highest possible measure
in his of service to the public, and to
Ambas- keep themselves strong. During

and

confidence

and

fellow banker,

our

Julian

,
5
^ four and one-half years service as Comptroller, I have been

Baird, who comes to take up the
post which Randy

relinquishes.

tremendously
way

you

responsibilities and the ef¬

forts

you

are

to maintain
a

privilege

great

you.

constantly making

high standards. It is

M. M. Townsend Director

Whew the high heart we magnify,

And the clear vision celebrate
passing by,

And worship greatness

Ourselves are great,

Morris M. Townsend, President

of Townsend Investment Company,
Short Hills,
N.

J., has been

elected

^ij-

and it was

abroad under that Act,

itfn-

I suggest among banks and bankers.

Financial
of

riV

Maintain the independence

(1)

managemment of currency it

the

make some mistakes, but it

may

a ^ fits:

;

into

Denver,

raised and spent in
last three weeks of the camHanna

Mark
the

$ in_.mil lino

nnitfn

"Ten

savins

Encouraee

savin£?s

exoansion

new

bers

mind, character, and perform¬

•

can't

dollars

wrong

monev

inherent

their

high

of¬

con¬

Treasury Robert B. Anderson,

sultant
Axe

who

character

take

opportunity again to ex-

•

;

ton Funds and

Townsend

Morris M.

director of

several indus-

trial and fi¬

corporations,
including
Corporation of America and

nancial
Vitro

Flying Tiger Lines.

change lists a larger

In Canada

of industrial shares
other

the weight of the

ident to reduce

the weight of

gold dollar and fix
the silver dollar.

Iron
our

Curtain

that

the

motto

coins, "In God We Trust," is

contained ~ not an empty gesture may hasten,
a
provision that was considered most more than atomic weapons and
: objectionable by Sraate
foreign aid, the fulfillment of the
which provided for purchase of prophecy concerning the Russian
$3-billion worth of Government people: "Only in after years when
Bonds
by the Federal Reserve their sins have taught them charLUC uin
addition, the bill

III
In

HUU1LIUI1

of
acquaintance,
broadened in recent years by his
as
vice-president
and
.
„
.

GTass,

make

failed

the

Banks.

President

the

Federal Reserve
these purchases,

has led them to faith, they
listen again to the sound of
went off the Coming across the field and
the Gold Re- prehend and reverence the
of gold was holism of the Cross."

authorized to

was

The same year we

gold standard; under
serve Act the
price

fixed at $35 per ounce,
"

the Silver

ity, and their despair has taught
them hope, and their loneliness

$3-billion in greenbacks.

issue

silver

ounce,

fixed

was

add under
price

t?i1silver 18 purchased
m° g°1,Ci ^^C
all

under

Federal Deposit
Corporation. It will be
and pleasure to work

Insurance
my

duty

com-

banking system.

Appreciation to Treasury

Vice President of The First Bos-

express

Sewickley, Pa.

by making money more
plentiful or to promote the sale of
silver. In 1933, thepurpose was to

perous

help the farmer. The Agriculture
Committee report smd the oollav
was

200-eent dollar and

Agriculture
50-cent

does not

dollar

dollar."
We

added:

years
ness>

an(t wouid( but for his illhave moved last January to
corporation

the main office of the
jn ]^ew York.

speaking

appreciation of the
Department for the help

the

Treasury

give in the United States
Savings
Bonds Program, and
again I extend the thanks of the

that you

unsound

have

48-cent dollar

highest volume in history
circulation, but the price of
products
other

is still depressed,
hand, the cost of

this field.

I think you

will be in¬

to you the
comment made by Under Secre¬
if

terested

pass

tary Burgess at a luncheon in his
honor on Sept. 12 when he said:

spite of the handicap of inter¬
rates, we are selling more
than we ever
have."
Promotion of savings in
all forms is a worthy cause, and
the United States Savings Bonds

"In

est

Columbine Sees. Adds

now

the

jn Sewickley for seven

demand a

and the

farm

that time to the Pittsburgh office,

(Special to The Financial Chronicle)

DENVER, Colo.—Ray L. Lower

$24,000,000,000

are

than

representing *every type
Canadian Manufacturing

of
In¬

dustry.

complimentary„ copy

A
our

Monthly Bulletin show¬

ing essential

before bankers, I
always value the opportunity to

$48,000,000,000
shares

Lr nnntp
Mr- Delafield Joined the New
90^> cents per ounce.
York office of The First Boston _
The purpose of all greenback corporation in 1931.
In 1936 he Treasury to the members of the
and all silver legislation has been iransferre(i t0 Chicago where he National
Bank Division for all
to make the country more pros- remajnecj until 1950. Appointed at they have done and are doing in
i °i

listed

sym-

tonat his home in
Corporation, passed away Sept.
25

the

and traded?

the Board of the

than any

exchanges

Canada.

manufacturing

lated

stock

number

the most

shares listed

All banks state
having to be men join
and national, are these congratu-

ers Association.

Richard Moncrieff Delafield, 45,
a

in
are

president of the American Bank-

closely wit!ti the:^
thb
a*faiAs °fv ^nartfel manner and
the best interests of the
completely impartial manner dual
ana

shall
bells

Richard M. Delafield

$1.29 per

ratio of 27.07

service

Express

Purchase Act the

which

width

celled

two

Ex¬

Stock

Toronto

The

Where

small Savings Bonds

has become affiliated with Colum-

Program

bine Securities Corporation, 1575

There

Sherman.

say a

deserves
also

full

support.

opportunity

word of appreciation, which
\

the

Hough¬

ficial,

by sion of the Convention and who
President Eisenhower for the six- will carry on the work of the
year term beginning Sept. 6, 1957, Treasury in accordance with its
and will bring to the Corporation best traditions.
;
; .
maximum
elements of strength
jn concluding, I would like to

new expansion money.

Treasury

(4) Cut Federal, spending by and ability and their long experiA majority of the voters agreed »10 biUion and taxes by $8 billion,
ence in important positions. Conwith him.
A national program of that type gressman Wolcott has been long
a»:i'-*-';.
would save us from uncontrolled known for his thorough underNew Deal Legislation
price inflation, but "man doth not standing of banking matters from
Passing over the Gold Reserve live by bread alone." "One kind the point of view of a member of
Act of 1900, we come to the spring thought," said Thomas Jefferson,
Congress, where^ he served foi
of
1933 when
we
were in our "is
Worth more than money." long years as a member and for a
worst depression. It was then that Daniel Webster, at the dedication brieter period as,chairman of the
Congress Dassed the kind of cur— of
the Bunker Hill Monument, House Committee on Bunking and.
Currency. It will be most helpful
rer^cy tos againsT which Alex- said that our example of a democ- to have him in the Corporation to
ander Hamilton had warned in racy that could fully protect per- carry
out the provisions of the
1791. That bill authorized $200- sonal
freedom while promoting law which he helped to frame.
million of foreign war debts to be prosperity would be of more value Erie Cocke, Sr., brings a broad
paid to us in silver at 50 cents to Europe than our material ex- experience in the field of com¬
ounce and authorized the Pres- ports.
By the same token, a dem¬ mercial banking and an unex¬
onstration
to
those
behind the
miHion

former

Happily there has come to the
office
of
the
Secretary of the

appointed

been

have

Mr.

Townsend,

Directors, will appear at the Wednesday ses-

Board

the

They

Colo.

ance.

Sr., as mem-

cott and Erie Cocke,

(2) Urge industry and labor to
011 a P«<* stabilization pro-

Republican ranks that

posit Insurance Corporation is to
be carried on with Jesse H. Wol-

i,outics

raHcfo! 16ntaogei°£threw1sutehtHa
scare

know

In¬

Fund

dustrial

intimately his greatness

great satisfaction to know
that the work of the Federal De¬
It is

of the Federal Reserve Board.

silver

free

issue

the

threw

To that end,

^he following program:

thai: purpose. That

Cleveland for
'

checked:

session of
President

by a special
called
by

"repealed
"Congress

shipped

gold

the

di¬

rector of the

tributed

Ode to Lincoln:

with

work

Keep up the good work,

course
of
the
present boom, I structive attitude which he has
manifested. We shall all miss him
I know of no one to whom these
f ran kly don't attach too much imUnder its pro- portance to their present guesses. greatly in the Federal Deposit In¬ words can be more fitly applied
pro-vCportanee1 to their bresent emesses
ver Purchase Act.
Purcnase
unaer
surance
Corporation, but we are than to the recently retired Sec¬
Visions, Treasury notes redeem;£vr ;yhappy that he is to continue active retary of the Treasury George M.
able in gold could be issued for ;• Suggests Anti-Inflation Program
in a field of work which will keep Humphrey.
It has been a great
the purchase of srlver bullion. .The ' ; It. is vital1, of course, that the
him in close touch with his friends
privilege to serve under him and
money
panic of 1893 was at-- upward pressure on prices be

the Sherman

known as

meeting

are

your

in conference was

mise agreed on

r
"later

the

impressed

which

great pleasure and privi¬

It is

Corporation, I extend appreciation

the

lege to serve the Treasury Depart-

To Earl Cook, who has just com-

silent

that

per-

Creditablv in everv »»

1®rm creanaDiy in every way, to

great honors as
We welcome with

enthusiasm

pleted ten years of service to the
of'the

national banks

have the

sadortoNATO.

House leading economists of the nation for a job well done and for the
down,_ and the compro- have- signally failed to chart the ever friendly, courteous, and con-

turned it

and

new

coinage of silver, the

.free

men

view

him.

for

your

ticularly for the opportunity it
his appointed term as a director ^en,t tor many reasons, but parwas a great shock to all of us and gives to have a close view of great
at
work.
To borrow the
controls brought deep sorrow to his host
words of John Drinkwater in his
and big of friends.

ended bimetalism but in
(4) Monopolistic price
doing so touched off a political in which big business
controversy, rover
currency that labor
unions have been
lasted for the next 23 years.

have completed

would

which all

ideas problemswe mayWe all want
so that fullv. understand

him happiness and success

j speak with authority when I say

before

affection

fidence,

chairman,

retiring

past four and one-half years.

He richly merits the respect, con-

^kwth them! and

° commercial banks.

passage

In 1890 the

es_

(3) Unprecedented credit expansion,... including the govern"with ment's program of underwriting

through

slipped

and

word of

say

' ' Unprecedented peacetime that the Corporation has main-

1873" omitted pro-

the, coinage

for

vision

financing

the

with

the Sale- f government

silver-producing states

the "Crime of

appreciation
Earl

Deficit

(1)

should like to

—.

1791 al- lowing:

fractional

though the silver m the

the

all
to

trading data on

issues listed
you

will be sent

free on request.

The largest

market for

industrial shares in Canada

(1468)

Continued

The Commercial and Financial
Chronicle

same period last
year ($3,106,000,000 in 1957 compared with
$3,589,-

from first page

000.000

$25

Annual Convention

and

were

(E bonds

Statement

public

behalf

of the

Principles

does

not

feel

adequately

"The

Committee

Legislation
model

credit

that

restraint,
able

maintain

year

national

take

can

banks
of

care

the

legitimate credit requirements of
both large and small customers.

Fiduciary
preparing a

now

statute

gratified

were

necessary

capital ratios; and

proper

Trust

this field.

cover

the

Institutions

Bonds.

considered

existing

denominations)
peacetime levels,

promotional appeals made to the

Secretary Anderson Lauds

during the months ahead
discussed, before more than

benefit plans. It is the
opinion of
the Committee that the

However, sales

indicating the effectiveness

also working on a Statement
and deposit totals have been
sup¬
Principles concerning employee ported by such
capital increases as

$50

record

general
banks

1956).

of "small saver's bonds"

ABA Holds 83rd

Thursday, October 3, 1957

...

"The most significant event of
permit the cre¬
Work of ABA in Promoting
were
The ABA program of
promoting ation of a mutual investment fund the year for the National Bank
Savings Bond Program
7,000 bankers from every state
Savings Bonds sales is under the and has also been
working on the Division and for banking in gen¬
and territory of the United States
The American Bankers Associa¬ guidance of the
Association's Sav¬
following legislative matters: eral has been the preparation and
and many foreign countries.
tion
and
its
retiring President, ings Bonds Committee. Chairman microfilm
statute
to
permit de¬ passage by the Senate of S.
The Convention presented a well Erie Cocke, were honored
1451,
by the of the Committee for 1956-57 is struction of
original trust records; commonly known as the Financial
rounded picture of the domestic U.
S.
Treasury Department for Bruce Baird, President, National uniform
supervision of trustees Institutions Act of 1957.
and international economic scene. leadership in
This leg¬
Savings & Trust Company, Wash¬ for charitable
purposes act; legis¬ islation
The program for the General Ses¬ the promotion
brings together in one
ington, D. C.
lation for the
handling of busi¬ place the maze of laws and
sions and for the ABA Divisions of United
regu¬
nesses
in
trust;
model
act
to lations under which banks
Trust Division Head Speaks
includecl^hi addition to leading States Savings
oper¬
exempt employees' trusts from the ate.
o n
bankers, speakers from govern¬ Bonds
Trustmen
were
presented
a
operation of the rule against per¬
ment, education, agriculture, and Sept. 25, when
"The work of our National Bank
brief picture of the work being
petuities; and a statute to validate
Division is carried on
industry. [Editor's Note —- Full Secretary of
done by eight of the ABA Trust a
through five
bequest or devise made by will
the Treasury
texts of most of the talks are pub¬
Division Committees by retiring to an
standing committees.
existing trust.
Robert B.
lished elsewheres in this issue.]
"The
Trust Division
Committee
on
Federal
■,
"The. Committee on
An important overseas guest was Anderson pre¬
Handling Legislation has directed its
President
pri¬
Businesses
in
Trust
is
the
Honorable
Peter
busily mary attention to the Financial
T h o b u r n
Thorney- sented the As¬
working on the man-sized task Institutions Act
croft, Chancellor of the Exchequer, sociation with
of 1957. The work
Mills, Viceof writing a book on this
the new flag
subject. of the
London, England.
President
.

and

Membership Constitutes 98%
of

The

Banks

Association's

of the Savings
o n d s
pro¬

Trust

T h

gram.

Committee announced that

17,526

KoDert

to.

Anderson

Anderson pre¬

C 1

bers of the ABA.

sented the flag 1o Mr. Cocke, who
accepted it in behalf of the ABA.

made

banks and branches

are now mem¬

The report was
by the Committee's Chair¬

Frank W. Thomas, President,
Washington Loan & Banking Co.,

man,

Washington, Georgia. His figures
are
as
of Aug. 31, the close of
the

total

Includes

membership of 17,526
members in foreign

176

countries

represents

Association

the

past

membership
of 141 banks

year

branches.

growth

Included

are

99%.

over

banking
In

98%

the

nation's

states

every

ABA.

the District

and

bank is

The

member

states

Ari¬

are:

Arkansas:

Colorado; Dela¬
Idaho, Louisiana;
Mississippi; Montana; Nevada,
New Jersey; New Mexico; North
Carolina; Oregon; Rh.ode Island;
Vermont; Washington; and Wyom¬
ing.
zona;

Georgia;

ware;

The ABA has members in every
state in the Union and in Alaska;

presentation, Mr.

"Throughout your
term of office,
Mr. Cocke, you
have been of great help not only
to

ABA

your

associates

and

the

business

visions
c

d i

bright
for

four

"The

Thoburn Mills

United

and

States

Saving

the ABA all

has

these years.

appreciation, I take pleasure
presenting to you — for the

American Bankers Association —
the new flag of the Savings Bonds
program.
I have been told that
the Association would like to dis¬

play this flag .in its New York
headquarters, and the Treasury
certainly will feel honored if that
is clone."
At

the

greater

ABA President Joseph C. Welman
a Certificate of
Appointment

with

which reads:

their

Councils

and

Estate

Mills

noted

moment, final

has

are

been

looking

forward

and

"Know Ye, that

re¬

■

"The

sion

of the

names

committees

portant

Trust

Eisenhower
:

the

ury,
;

;"T

t h

members

the

8 3

Annual

cial

I
gretings.

;

u r

tional
p e

has

Liseaiiuwer

many
r

blessings

i
a

s o m e

lems.

The

demand

for

prob¬
funds to

finance

expansion in all parts of
the
country has exerted strong
upward pressure on prices.
But
with
our

assistance

your

citizens

understand

helping
the

im¬

portance of sound money and the
need for strong credit
policies, we
are
meeting the challenge of in¬
flation.

"Your government will continue
to

benefit

from

your

cooperation

healthy,

growing

wishes for

advice

support

economy.

spiendia

and

Best

coiive..tmn.

"Dwight D. Eisenhower."

message
M r.

Cocke
Paul I. Wren

n a-

brought
Pres.

Make
was

distributed in

"Every Month
Yourself,"
January as part

Treasury's

newspaper ad¬
program
for
Savings

vertising
Bonds, and turned
first

the

One Payment to

the

most

The ad,

copy.

p r o s-

rit

for

Savings Bonds
bearing a spe¬

their

Convention,
1 send

adver¬

tisement

assem¬

i t h

framed replica

American

bled

presented

him

Bankers Asso¬
ciation

Treas¬

out

the

popular ad for Bonds in the
quarter
of
1957.
It
led

eleven
same

other

ads used during the
period, with 220 insertions.

The

nation's

banks

have

directly

responsible for a
sub¬
stantial portion of
Savings Bonds
sales
and
have
processed
the
Bonds for the government
ever

since the War Bonds
and Savings

Stamps

program

during World War

was

initiated

II.

down

13%

Committee

compared

with

the

published

six

'Trust Bulletin'

the

be¬

with

the

issue

current

anticipation
.

looking forward
to reading this

Significant pro¬

permission

make

loans

construction
loans
to
100%
of
combined capital and surplus; and
liberal

interpretation

both leasehold loans and the tak¬

ing of liens

real estate

addi¬

tional

security without the liens
being subject to real estate loan
limitations.
The

Committee

with

Federal

tacted

the

Relations

Agencies

has

Chjtef National

con¬

Bank

Examiners in all 12 Districts
and,
through such contacts, continues
to develop a better
understanding
banks

and

the

authorities.

The

super¬

Comp¬

troller's office, working with the
Committee, has prepared a book¬
let detailing how examiners' re¬
ports are made, how requests for
branches

new

the

industrial property,
increase in the ceiling on total

between

with

one

construction

commercial

visory

series.

Costs

and

Charges;

recently
conducted
a
national
survey to determine what is being
done and what needs to be done
to keep them in
reasonable bal¬

and

charters

are

study will disclose policies assistance in increasing our knowl¬
in fiduciary
invest¬ edge of the Comptroller's office

such

and

trends

ment,

the

extent

ance.

Sixty-four

trust
the

per

departments
questionnaire

cent

their

own

amount

considering

dent

sion,

Fleming, retiring Presi¬

the

National

reviewed

his

that

the

favor

State

charge

Mr.

vised of

Net

also
"In

sug¬

important

proposed

regula¬

with

trusts.

respect

a s

i 11 e,

bankers.

derstand

clared

that

rates,

"during

t h

termined

I he

through

National

demand

past year.

strated
with

its

the

ability

demands

keep

and

pace

needs

the

country's expanding economy.
At the year end, there were
4,659

national

banks

operating

branch offices and

mittee has also made
suggestions
to
the House
Ways and Mgans
Committee covering the

creased

stock

issuance

tax

participations in qualified pen¬
sion trusts in a pooled common
investment fund. The Committee

commercial'

banking assets of
nation.
According
to
the
Comptroller's annual report, de¬
posit
totals
of
the
System
in¬
mark

3.2%

to an all-time high
$107.5 billion, and loans

increaseld
of

$48.2

10.6%

billion.

ad¬

state

earnings

hear

they

benefit

much

high interest
allegations are often

All
the

few

only the

people

un¬

workings of interest

course,

the

law

and
As

too

market

not

place

supply

matter of

actually

de¬

are

and

banks

fact, bank
not

large

and are much smaller than
most
other types of businesses. The
an¬
nual report of the FDIC for
1956
reveals
that
the
aggregate
net

holding 54% of earnings of the 14,000-odd insured

the

tion

3,655

days,

evils

which,

Banking System again has demon¬ bankers.

the

The

these

Ten n.,

Cur¬

Committee

Earnings 7.8%

that

state-chartered

developments in the

made

Fleming

The

legislatures.

Nashville,

formula,

Legislation has kept

and

Sam

real¬

a more

reserve

Fleming,

who

Com¬

the

tpe

tions

from

banks

rates,

Commiftfioner

the

1954

debt

about

has

operations.

Research and

the

institutions.

the Third

Trusts.

its

reduction,

bad

;
.

Na¬

R evenue

and

tional Bank in

Committee

profit-sharing

n's

covering, the
estate
tax
provisions of the Internal Revenue
Code

President of

Employees

assessment

Divi¬ istic

usually made
against blanks.

benefit) plans — poses
many problems for our
Commit¬

changes

profit

ployment

answer e d-

business—employee benefit plans,
types, including pension and
profit-sharing plants, thrift plans;
and SUB
(supplementary unem¬

the

exaggerated

ways

several r provisions
of
V efforts for the- S. 1451 which reduce the areas Of
past year and- discrimination
against
national

•'2-

of all

Bank

D i

giant in the trust

"That young

tee

details

requirements.; It also has directed
its attention to the need for FDIC

National Bank Report
Sam M.

providing this assistance.

rently,

the

"The Committee

and

departments. Our Com¬

now

and

Operations
has
emphasized the
capital market, and' importance to banking of the re¬
growth of per- port recently released by the ABA
cjo-ni
handled by Economic Policy Commission on
revisions of member bank reserve
corporate fiduciaries."the

they would welcome outside help
in
instituting a cost survey within
mittee is

investment

doing in the

the

responding
indicated

responsibility which corporate
trustees exercise, what
they arc

01.

E and H Bonds
were

September. Each study sets
a
hypothetical
investment
problem and then gives several
answers
prepared by Committee

im¬

exemp¬

During the first eight months
1957, sales of

but

"The Committee on Statistics is handled, and outlines the details
they work. They are: Com-,
mon Trust
Funds; Corporate Trust weighing all angles of the proposal of many other staff operations.
Activities;
Costs
and
Charges; to gather trust statistics on a na¬ It has been distributed to all na¬
Employees Trusts; Fiduciary Leg¬ tional basis.
It is believed that' tional banks and will be of great

Internal

been

infor¬

Estate

primarily in

which

gested

Banks Push Savings Bonds

working
of

are:

18-month

....

said:

also

all

tional Bank Act.

Divi-* members.

the

posing special confidence in the
Bermuda; Bolivia; Brazil; Canada;
Patriotism, Integrity, a n d Dili¬
Cuba; France; French West Indies;
gence of Joseph C. Welman
I
Great Britain; Hawaii; Honduras:
do hereby appoint him — Good islation;
Handling Businesses in
India; Japan; Mexico; Philippine
Will Ambassador for the
Savings Trusts; Operations for Trust De¬
Islands; Puerto Rico; Salvador;
partments; Relations with the Bar;
Bonds Program."
Tangier; Venezuela; and the Vir¬
Relations with Life
Mr.
Cocke
received
another
Underwriters;
gin Islands.
citation for his backing of the Relations with the Public; Rela¬
Savings Bonds program at a meet¬ tions with Supervisory Authori¬
President Eisenhower's
ing of the ABA Savings Bonds ties; Trust Statistics; .Taxation;
Message
Trust Investments; Trust Person¬
Committee. At
In a message to the
Convention,
that
t i m e,.' nel; and Trust Policies.
%
delivered Sept. 24 through the As¬
Paul I. Wren,.
"One of the most
pressing prob¬
sociation's o li t going
President,
Assistant to lems in our business is the pereh-.
Erie Cocke, President
Dwight D.
the
Secretary ninl one of costs and charges. The.
%
—

incorporates

for

areas

sources

Real

been

proposals made to amend the real
estate loan limitations of the Na¬

problems.
This
just revised and

has

study of

ginning

another

indicate

diverse

arid

with

institutional investment
This committee has pre¬
series of investment case

issues

Hotel,
A strong pro¬

planned,

trust

studies

10 and 11 at the Multnomah

Portland, Oreg.

smaller

policy.pared a

arrange¬

being made for the 31st
Western Regional Trust Confer¬
ence, which will be held on Oct.

gram

connection

Committee

the

mation

ments are

hardest

our

investment

The
as

follows:
"At this

In¬

published the bpoklet, 'Laboratory
on
Trust Investment
Problems.'

Plan¬

part

Committee

% most
successful Conference.

time,

Secretary
Anderson presented incoming
same

companies

ning Councils developments.
Mr.

"In

assistance

mum

Trust

one

—

Trust

has

connection with the Financial In¬
stitutions Act of 1957.
The Act

—

sale

Bonds;

has

working committees
has as its
objective the providing of maxi¬

Mr.

expected in Life Insurance—

ress

now

Loans also

visions

Committee

vestments

need exists for better public rela¬
tions and referred to better
prog¬

five important irons in the

idle—it

never

fire.

Mills admitted
that

trust

business.

'Common

Handbook,' and it is
being distributed. That Com¬

now

future

the

its

Funds

ex-

published

mittee

en¬

generally, but
also to the Treasury Department.
You
have helped
the Treasury
particularly in the promotion and

States

resources.

Columbia,
of the

and

over

of the banks in the United
and

over

the

Anderson said:

banking

ABA year.

The

making

Common

has

edition

Trust

lan d,

eve

Ohio, who

Funds

third

Cleveland,

Committee

Trust

National

Bank

Secretary

Organization

"The

Officer,

The

grand

total

larger loan

banks

only

the

$1,216

United

billion

States

were

7.82%

total

capital accounts. Dividends
paid to stockholders of the entire

banking system for the

year

1956

aggregated only $617 million. This
is

rather modest

showing when

compared with

manufacturing

Commercial and Financial Chronicle

Number 5678 * The

Volume 186

(1469)

from

satisfaction

siderable

Continued jrom page

the

$4.9

billion increase over

Dec.

3.3% above 1955,

compared with

increased 31, 1955, or 3.8%. While total the 2.9% increase the year before."
and
discounts
continued Investment in United States Gov¬
stability achieved in 1956. Their loans
capital position was $596 million their upward climb to a record ernment obligations declined 4.2%
volume of $62.3 billion, the in¬ to a total of $34.9 billion."
stronger than a year ago. At the
year-end such institutions num¬ crease of $5.3 billion over com¬
Resolution Adopted
bered 9,448, of which 8,921 were parable 1955 year-end figures was
commercial banks (including loan only half that experienced in the
At its Second General Session of
and trust companies, stock savings previous year when the gain was the 83rd Annual
Convention, the
Divisions in company with repre¬ banks, private banks, industrial
$10.8 billion, The deposit rise of Convention adopted the following
sentative leadership at the Wash¬
V
• : .
banks, and cash depositories) and $3.8 billion and the liquidation of resoliUionsr r ' ..^.,^
ington level.
;
>
"The Inflation Problem:
Per¬
527
were
mutual savings banks. $1.5 billion in United States Gov¬
;
Mr. Davis, who is Chairman of
provided the sistent inflation is one of the
-"Total assets of state-supervised; ernment securities
the Board of the Wachovia Bank
foremost problems today in our
and
Trust
Company,
Winston- banks in the United States and; funds for the increased investment Nation and
throughout the world.
Total deposits — $120.1
the District of Columbia reached a; in loans.
Salem,, N.
C., claimed, "state;
A; Continued on page 42
billion at the year-end — were
supervised banks can derive con¬ new high plateau of $133.7 billion,
relative

and

progress

ABA Holds 83rd

Annual Convention
companies, which, on the average,
on capital in 1956.
individual companies
earned almost as much as all of
the banks in the country com¬

12.3%

earned

„

Several

bined.

,Y'.

Wants Bad Debt Formula

f
"The

Changed
facts

cold

that bank

are

salaries, general expenses of oper¬

ation, and interest paid on savings
accounts have just about kept pace
with ■
increased
revenues
from
,

and larger
; modest
earnings of banks in times of un¬
interest- rates

higher

totals.

loan

the

fact,

prosperity, accompanied by
increasing
loan totals,

usual

steadily

taxing

point up the need for the
towards

attitude

istic

loans.

reserves

real¬
valuation
It is hoped, in

to adopt a more

authorities

public interest, that we will

the

be successful in

obtaining

a more

adequate bad debt
which
is
not

realistic

and

reserve-

formula

geared to give preference to those
which
suffered the

institutions

greatest losses during the depres¬
sion years.
Commends Federal Reserve

remiss if

"We would be

did

not commend the Federal Reserve

authorities

their

for

courageous

intelligent fight against infla¬

and

Public

tion, which continues to be

Enemy Number 1. It is unfortunate
that more people do not better
understand the workings of money
In

affairs.

fiscal

and

period

and operating costs
constantly and apparently in-

when
are

wages

rising,

exorably

some

restraint

must be maintained on the money

supply, or the inflationary pres¬
sures
might; well break out of
bounds. The rise in velocity of the
of money has compli¬

circulation
cated the

Reserve

problems of the Federal
authorities in the past

and the battle is not yet
but it is encouraging to know
that Federal Reserve policy con¬

year,

won;

tinues

guided

what

considered

by so many monetary

authorities

being best for our

country.
banks

"As

compete for deposit

dangerous situation is
being built up in the give-away
services offered as an inducement

totals,

deposits.

obtain

should

continue

to find

as many

serve

entitled

the

We bankers
strive always

means as

possible

public,

but we are
receive
reasonable

compensation in so doing.
"In
•

1963,

now,

the

will

anniversary

only six years from
abserve the 100th
the establishment

National

Banking System.

fitting and proper that this

most important

occasion should be

properly commemorated. A com¬
mittee from our Division already
has

Vast

significant event."
State
The

the

President

State Bank Division of the Ameri¬
can

Bankers

Association,
speech

in a
before

Meeting of the

Division, Sept.

23, praised the
excellent

rep¬

resentation at¬

the

tending,

a the An ual
hearings

Division

Davis

spoke

Davis

meetings held

with

the

America can provide the food
population. Science meets the

challenge with modern

experimental stations dedicated to crop

research and

development.

Today's agricultural scientists working

emphasis

with United Fruit Company and

improving indigenous crops, obtaining

restoring nutrients to the soil and
guarding against wind and water erosion or Joss of soil moisture, by plowing
yield from rice, sugar, corn, bananas
under

new cover

crops

...

together, the agriculture of Latin America
is progressing rapidly... filling the needs of the people, increasing local govern¬
ment revenues, earning dollars for manufactures in world markets. It is a vital
By menot the Americas working

^part of

the Living Circle of trade and communication

that unites the freedom-

loving Americas.

United Fruit Company

the

met

joint

National

General

Offices:

Federal

Street,

STRENGTHENS THE
United Fruit Company
the Americas

like sorghum or beans.

Boston

10,

Mass*

CIRCLE

LIVING

THIS

higher

also

success

with

head

Archie

the world's swiftly increasing

subsidiaries, put the

;

BETTER LIFE

undeveloped agricultural resources of Latin

demanded by

Assets

Bank's

retiring

WITH BETTER CROPS COMES A

this

begun making plans for

AMERICAS

has been serving

usefully for 57 years—re¬

claiming wastelapd,

stamping out dis¬

developing human skills, helping
by research, new techniques and trans¬
portation, to increase the production

ease,

and

sale of

crops,

bananas, sugar,

and expediting

and other

communications.

(1470)

The Commercial and Financial
Chronicle

Continued from page

<
'

f
/
- ;
a|d State Association Section
.

ABA Holds 83rd

Heads of ABA Divisions

Annual Convention

pt.

imposes the serious threat of our currency for this and future
sapping
the
economic
strength generations.
is

essential

the

sur¬

"Savings:

vival of the Free World. Too many

powerful

people

One

our

most

against

notion that

inflation

can

persistent, creeping
be
kept
within

bounds.

Thp history of inflations

all

infla¬

will

seemingly mild at the start always
lead to crisis and collapse unless
realistic

measures

undertaken

are

to correct them.

"Measures

continue

"To

Erie

extend

Cocke,

appreciation

While

monetary controls, exercised
through the Federal Reserve Sys¬
tem, are one of the important

WmL a

for

his

likewise

Bank

Di¬

Savings

Trust

'■<£< >'*

Division;

Lockwood

*;V'

!•

John

acknowledge

groups

recognize

the

during

area

monetary

con¬

visit

our

trol, the Board of Governors and

Dr.

Tribute

A memorial to

prosperity. They have clearly

understood that sound and
lasting
economic growth can be sustained
only if the structure of credit
remains healthy.

They have

of the American Bankers
Associa¬
tion at Atlantic

City,

read

Chairman

was

future

needs

Federal

Reserve

24,

Fleming,

Board

The

authori¬

ties also

are to be commended
for
their firm reliance on the
market

National

national

was

advertising

recommended

istrative

program

the

ABA.

proposal was made at the
83rd Convention and it will be
submitted

monetarv restraint. This is in
the

referendum

October.

democratic tradition, for it is the
only wav that monetary

rowers

and

lenders in the

use

Current

Situation:

believe

that creeping inflation is
inevitable and that a
major
target today should be the elimi¬
not

nation

inflationary pschology

from the public mind.
The welfare
of all our
people and lasting im¬
provement

without

standard
of
that this be done

delay.

For

this

changing conditions,

reason,

situation

resist

cur¬

pressures

particular

groups for
money and credit
whenever
a

the

urge

monetary authorities in the
from

their" segment
the economy
begin to appear.

thinking

person or group wants

way
the prevention

excesses.

''The solution of
the problems
of inflation is
beyond the scope of
to further sound
economic

therefore, all agencies
tial

growth,

of govern¬

must

.recognize as an
criterion
for
their

the importance
of

cost

"We

inflationary

believe

essen¬

actions

stability in

living and

persistent

that

combatting
pressures.

the

re¬

honest and unselfish
stand
against inflation. It is the
duty
an

each

insist

support—indeed

upon — policies of re¬
straint in the
democratic tradition
which will preserve
the value of

the

economy, consumer credit
facilities, and source for employ¬

ment.

New

Division

Heads

Officers elected
Sept. 23 for the
four divisions and the
State As¬
sociation Section of the
American

Association

annual

meetings held in connection with
the
as

83rd

Annual

Convention

are

follows:

given

were

titles at

William

wcod, President

tional Bank and

Trust

was

-#9

■

JBtiW

Bii

Kennedy

Frank

new

additional

Annual

Convention.

named

senior

deputy

...

■

...

has

been

Mr.

Selecmam<will

election of

Gans

Howard

Na¬

Company,

President:

John

Jamaica

Jamaica, N. Y.

Adikes, Presi¬
Savings Bank,

State Bank Division

President: Ben C.
Corlett, VicePresident of American Trust

Company, San Francisco, Calif.
Trust Division

President: Walter
Kennedy,
President of The First
National

Montgomery,

Mont¬

gomery, Ala.

;

*.•

the

Public

Relations

Townsend, assistant
the News Bureau, was

made associate director and
the additional title of

Dr.

West

Bankers

Charleston, W.

Vir¬

Association,
Va.

(4)
'(a

given

Murray

G. Lee, secretary
Policy Commis¬
given the additional title

Thumbnail

sketches

director

the

De¬

partment of Monetary Policy.
Christian
F.
Schnell
of
the
Legal Department was named as¬
sistant counsel of the Association.
stalment
named

Craviolo

Credit

the

Department

assistant

JOSEPH C. YVELMAN
President

In¬
was

Organizational Changes

the

The

born

was

and

moved

enlarging scope1

activities of the American
the last

Johnston

has

been

with

since

years

the

1925

director in

the

1930

Bank

(except

United

and

for

Mr. Welman has served

Section

1934

the

Kennett

5219

U." S.

utes of the Committee

Legislation

1936;

Revised

from

1951

ber of

the

Kennett

and

Area

the

member

the

Bank

Management

Manager;

policies

and

ministrative

(2)

will

and

its

Senior

The Management
serve

under

direction of the

the
Ad¬

Committee.

The President of the Asso¬

elected
the

President

83rd

Atlantic
Mr.

Annual

the

was

ABA

Program
Region XI.

and

Com¬

married, has two
his

makes

home

LEE P. MILLER

Vice-President
Lee

is a former Presi¬
dent of the Kennett
Business* and
Professional Association; a former

Miller, President of the
Fidelity Bank and Trust
Co., Louisville, Ky., was born in
that city and attended the Louis¬
Citizens

ville
>

schools.

He entered

the

Fidelity

banking in 1911 with

trust Co.,

Citizens

Fidelity

Co.,

which

President

City, N. J., Sept. 24,.,1957.

Welman

Inc.;
Com¬

Missouri

Kennett.

Convention

Com¬

County

Agency,

Southeast

Mr. Welman is
sons,

Com¬

Dunklin

Corp.',

sion in 1955-56; a member of the
Association,
Committee on Employee
who will be
Training
Chairman; its elected
Vice-President; its Treasurer; its formed in 1956; and Association
in 1956-57.

director

Credit

mittee for

mission from 1954 to
1956; a mem¬
ber of the Credit
Policy Commis¬

Vice-President; its Ex¬ Vice-President

Boy Scout Council. He is a
of the Voluntary Home

1956;

Committee

the

Mortgage

Mechanization of Check Handling
of

(I> There is established a Man¬
agement Committee
consisting of
the President of the

1951

member

from

Director

Chamber

Insurance

1956,

Council

U.
one

Chairman of the Trsut

mittee

Federal

1949

the

Warehouse
Co.;
Secretary-Treasurer of the Baker4
Welman

agement of the

from

State

former

Development

and the
Compress
and

Country Bank Opera¬

Commission

present

Kennett

merce,

Stat¬

1853;

Missouri

and

co¬

Civilian

former Di¬

Housing Corp.

the

many

Subcommittee

Ken¬

former

Committee; and

founders

the

Vice-President for

from

the

Commerce;

Chairman

War Bond

the

In the American Bankers Asso¬

tive

the
of

Regional

States

President

Chamber

committees of the Missouri Bank¬
ers Association and was its
Presi¬
dent in 1948-49.

Sports^

and

Education;

the

Missouri

member

ordinator of the Kennett

1939.

was

County

Association

being Chairman from 1954
to 1956; a member of the Execu¬

currently

Dunklin

rector

Kennett

tions

Association, which

of American

Defense Organization;

Association, the Administra¬
tive Committee of the
Association
made the
following changes in the
provisions for the executive man¬

Committee

Washington office.

Board* of

early

the

approved Sept.
Executive Council:

Vice-President

Club; a former member
Secretary
of
the
Kennett

and

member of the Federal
Legislative
Council from 1952 to
1954; a mem¬

were

executive

nett Lions

City111.,

Missouri

and the resultant in¬
in the burdens and
respon¬
sibilities of the executive staff of
years

crease

the

men's

childhood, being educated in the

member

over

the

Senior

President and

-/■

Joseph C. Welman, President of
the Bank of
Kennett, Kennett, Mo.,

of the
Instalment Credit Commission.

Bankers Association

secretary

Because of the

newly created office) will have

sociation's

Navy, attaining the rank of Lieu¬
tenant), becoming Cashier and a

Edward

depth

of ranking officers

two

assistant

charge of the activities of the As-<

man¬

of the Economic
of

to dake

election

management

pending

sion,

was

expected
such

Bankers Association
follow:

the ABA Savings Bonds
Commit¬
tee.

Vice-President.

a n

manager

continue

new'executive

adding

that" office;

also

shortly,

secretary of Kennett
schools.

ecutive

State Association
Section

which

executive manager
being part
the Association s
program of

new

Backgrounds of New ABA Top Officers

Executive

President: Frank N.
Executive
Manager of

ager,

place

;

man¬

Robert G. Howard, assistant to
the executive
manager, was named
director of the News Bureau ef¬

director of

elected

executive

Council.

Dwight

Execu¬

by Dr. Harold Stonier) is
recreated, and Merle E. SelOcman

R.
Fichtel
was
ad¬
vanced from assistant director to

fective Jan.

magazine,"Banking,"

Chief

-V

cupied

Rudolph

director

its

be
A

(3) The office^'of Executive
Vice-President Kformerly oc¬

meeting of the Adminis¬

ager.

few

ginia

Lock-

Savings and Mortgage Division

Announced

Burlington, Vt.

Bank

staff

trative Committee of the Associa¬
tion held in connection with the

ABA

National Bank Division

the

shall

officer.

ciation, he

President:

dent

the American Bankers
Association

•'

the

sponsibility of every American

take

ap¬

sepa¬

banking

monetary authority alone. In order

ment

if
a

distinquished from other financial
institutions, banking contribution

signs

slackening in

avoiding them is

will,

Themes suggested include edu¬
cating the public on

easy

depression or
unemployment, but
we
believe that the surest
of

raised

proved, be channeled into

recognizing the importance
in
policy
under
Bankers

flexibility

rent

funds

the

living require
while

The

rate fund.

"The

contributions

ranging
authority from $25 to $15,000, depending on
be exercised without
size of the
invading
bank, were suggested.

credit.

banks, perhaps by mid-

Annual

members

tive

William R. Kuhns, editor of the

The

member

the prerogatives of
individual bor¬

Seven

Association's

by the Admin¬

Committee

ciation

Titles Announced

Advertising

Recommended
A

place to determine the impact of

can

Changes in Seven ABA Staff

83rd

the
premise
that
debt
can
be
repaid later in cheaper dollars.
"The

the

rec¬

ognized that credit should not be
used
for
speculation
or
undue

anticipation

Sept.

Robert V.

Riggs National Bank, Washington,
D.

devoted

servant
ing their authority with skill and
of the American Bankers Associa¬
They especially are to be
tion, Dr. Harold Stonier, adopted
commended for
recognizing that
by the 83rd Annual Convention

false

Harold Stonier

courage.

inflationary doses of money could
drug the economy into a sense of

Walter

;

H-

■

Ben C. Corlett

Memorial

their associates in the entire Fed¬
eral Reserve System are exercis¬

.■,.1,

here."

mmm
Jy

the Association.

that

"Wp thank the New Jersey bank¬
lasting economic growth can be ers for their assistance which
has
supported only by improvement in contributed so much to the
success
productivity and the accumulation of this Convention. We are
grate¬
of
the capital
needed to make ful to the
hotels, the press, and
more
effective use of our tech¬ the
people of Atlantic City for
nical knowledge and resources.
their hospitable assistance
"In

A A /, f

W£-

divisions, sections, councils,
commissions, and committees of

nomic

our

appreciation of the loyal and ef¬
fective work of the other officers
and the members who have served

against inflation, they
accompanied by an ap¬
propriate fiscal policy and by a
willingness of all important eco¬

Adikes

our

weapons

and Frank N. Gans is
head of the State'

t ;V Association Section,
Wm.

Mortgage Division; Ben C. Corlett,

•

leadership

must

President of State Bank
Division; Walter

IgHPf

President,

our

devotion to the affairs of
Association during the year.
"We

Kennedy, President

and

Restraint:

and

sincere thanks and

our

ABA|s National

vision; John Adikes> President

Appreciation
we

....

ARM
OFFICIALS

President of

W'*

thrift

encourage
the part of the people.

■

William M. Lockvimod is
newly elected

Www

savings. Our banks, through
their
own
savings departments
and their vigorous support of the
Treasury savings bond program,

the world gives contrary
that
forces which
are

over

evidence

weapons

•

NEW

tion is

willing to accept the
view that long-range inflation is
inevitable.
Many hold the false
are

■■

which

Thursday, October 3, 1957

...

and

Mr. Miller

bankers

Bank

director

the

now

Trust

elected

was

1949.

has long been active

association

affairs.

the

Kentucky Bankers Association

was

member

the

Juris¬

prudence Committee from 1937 to

■1956,
to

The Commercial and Financial Chronicle

Number 5678

Volume 186

Chairman

being

from

daughter; he makes his home
in Margate City, N. J.
*

1937

one

1951; Chairman of the Tax ReCommittee

1954; and

1951

from

New York State Bonds
■a

wutiv

-particularly in the field of taxaHe was a, member of the
.Committee on Federal Legislation

:mrS^iiV?oiLC a

ritwM?

Titv Rank nf Npw VnrW qnH

°.-^epnett, Kennett, Mo. The
dates f^Qr.the^, Convention will be -

ition.

&ePt- zi-^/ iaaa.
Various Coiweution

vestment problems, and will also than we think! Get a load of this:
help them in formulating a sound a complete savings and mortgage
investment policy.
automation, based on our ComThe Committee on Real Estate mittee's functional specifications,
Mortgages and its alert Chairman, is already on ice; two equipment
Cowles Andrus, with inflationary manufacturers have it! What do
dan^er as a sinister backdrop, you think of that? Furthermore,

•

C- Welman newly elected Pi'esi°f -;vthe Association. Mr. tinnai
-Welmtm is President of the Bank ;» eh

the
work of tw icgiatctuvc wuimmtiLb,
its legislative committees,
with

years

page

Inseparable Twins

Offered to Investors

The 1958 Convention of the AsIn the American Bankers Asso- sociation will be held in Chicago,
eiation, Mr. Miller has been iden' ! ,was announced by Joseph
many

1941, being Chairman in 1940-41.

for

from

.Chicago on Sept. 21-24

tive Committee from 1938 through:

tified

Continued

$24 Million Issue of

J*®. '"ee^inS to Be Held in

member of the Execu-

(1471)

Brother*

awardod

wac

noft'oon State

Inifti-

State Mental

1
a *
tution General Obligation Bonds, have not been in the least wishy- panng-ttrspend millions to is preone enterprising company organ7
sconvention committees
_
inHnwashy in tackling this year s per;its Chairman from
icmber of the
Tie was, likewise, a member or
AlVA
;®r^anized and announced slve.
»
>
plexing problems. For instance, at ize corporations that will serve 10
Subcommittee on Taxation of the ,!"
^?e ^B^+.memh®rship later.
The group bid
100.0273 for a a. ?ime when builders and poli- or more smaller banks
on a
■Legislative Committee and.was its 1Iote ^plications will be sent to 2.90% coupon, representing a net ticians Lav<; been screaming their legional basis.
.
. •
■. ■
Chairman for-.several years. He n7vmbers early in 19a8.
No ap- interest cost of 2.8965% to the heads off for easier and longer
Our Committee has had fre¬
■was
also a member of the ABA plicah^ will be accepted by the state.
mortgage terms, the ABA has put quent meetings with manufacPublic reoffering of the bonds llp .a Sallant fight against the in- turers and has even visited their
■Special
Committee
on
Excess h.nlcls diie<'tly.^ ^Official reserva/I
i
flrvR
-CI
v\1
T^Ia
aIiWi
41 wvl -f
Profits Tax during its life 'from
bo-11 hcmdled^'bv^the S<Con vention due lrtSh"-T95»"-through'1964,"In sjdious, hnnrl in rian^ influences plants. twn-dav session a stimuinflationary
The climax was in .Tnne
OC
nanaicu
oy
tne
convention
■
, -. ■ .
that
fn
«/tth
tVin latino*
the amount of $11,200,000, is being that go hand in nand with the lating
1952 to 1954. In addition, he served
two-day session in June
Hotel Committee after it is or¬
made
at
prices
scaled
to vield liberalization of guaranteed mort- which was
attended by several
on the Committee on Taxation of
ganized. "
"
from 2.25rrto 2 75%. TOe tolance S^Res and with the devious oper- manufacturers.
•the Trust Division of the ABA for
~

for

number of

and

years,

195o

was

19o7.

committees
u;_

and

years

•four

years.

The

Trust

was

He was

years.-,,

serving

Federal

the

director

and

I idelity

of the

lbU,UUU

thf.

Chair¬

New York

Natural's
gram

and makes his home in Louis-

ville.

ireasurcr
Treasurer

It is

■.

of The Boardwalk National Bank

J., is

native
7of
Philadelphia,
and
attended
Dickinson Law School, Carlisle,
of Atlantic City, N.

this

Washington, D. C., from which lie
received

American

the

member of

Association.

Bar

Jigan & Harris of Atlantic City.
been

has

.'.i.

pro-

National

Boardwalk

.The

financing

debentures

later

have

conver¬

As a sinking fund for the new

Bank

pany

stock, the com-

is to make provision on or
1, 1961 and on or be-

before Sept.

fore

Sept. 1 in each vear thereafter for the redemption at $100

New

of 6,400 shares of the new series.

of The National Bank
Ocean City, Ocean City, N. J.

;1955

President

was

the

per

share, plus accrued dividends,

The company, along
subsidiaries, owns and

Mersey Bankers Association in
+1951-52,

iniect

did

much

needed

that snace and adeauate wiring

we am inject a mucn ne^aea so mat space ana aaequaxe: wiling

Company of Chicago;

First

Bank

National

Committee

T-T

has

gone

t0 takeautomation. •

So we begin to get the whole

all-

Haupt
&
Co.;
Hayden,
Stone & Co.; Hirsch & Co.: Laid-

Co.; Lee Higginson Corporation; Wm. E. Pollock & Co., Inc.;
Roosevelt & Cross Incorporated;

its

with

operates

a
a

10,768,miles of pipeline through
which. it transmits natural gas to
1

member of the Executive Council

Hammill & Co.; F. S.
Co.; Robert Winthrop

Smithers &
&

Co.;
Dean Witter &

because

nroeram

Ira

Shearson,

private enterprise,

channels mortgage money into re-

Dominick;

30,

.and Chairman of the Board since

to determine whether
might fit into its pic-

ture in the near future, or in the
we've got a new distant future, for that matter,
go
along with it. Our Committee has taken the bull

Congress for another two vears
has extended this worthy sion tosavings and mortgage world.
of the keep its finger on the pulse

The new series is re¬

.and has been a Director since 1927

as
automation

Glore, needle into an utterly liberal body will be 011 deck when a bank is

Co.;

that construction

series of preferred

tion so

constr^'ti^''B^t1^611^ National Bank
0f Saint Louis, Alex. Brown &

that

the wide scope of that conscientious work, plus the ubiquitous
mote areas without leaning on the ABA staff, who call the shots,
direct-lending crutch of the Fed*t ^as always been the aim of
eral'GovernmenP w'e reioice'that the Savings and Mortgage Divi-

accrued dividends.

1942

The

1966; and declining 50
cents per share annually to $100
on
an(j af^er Qct. 1, 1977, plus

Director since

and President since

1932

Fenn

and Trust

share thereafter and on or before

Sept.

Mr. Kirkman is senior member
of the law firm of Kirkman,
MuJ-

Northern

nnv

also

of Chicaeo-

Bd"K 01 ynicago,

and

1926

and now
regulation to

law &

rights.

make

& out for the Voluntary Home Picture of what makes the wheels
freilt Program. And
[Sal niiSs National''Bank why m C P is we? instrument & ° work of its committees and
sh°uU'n t true A"er aU> tious

year.

These
sion

He was

should

bank

study of its own individual situa-

"er & Bcane; Goldman, Sachs

A
Tni-cA
d1,,
the New Jeisey Bai .deemable at $115 per share on or
qa
ciar
before Sept. 30, 1962; at $106 per

admitted
in

L.L.B. degree.

J. P.

\?>r' ^ Fr«? & p0litic'
Qur

construction

1957

Every

National

Federal

Co. Merriu Lynch, Pierce, Fena

through the sale of approximately

$25,000,000

...

This year we got a new Housing

Act,

■'

Company;

Portland, Oregon; Wood, Struthers
& Co.; Paine, Webber, Jackson & Curtis; Bacon, Stevenson &

additional

undertake

the

■
f
Discusses Housing Legislation

were

wmU,S?eSNorthern NatoaTto ^Brirr^'incorpofatodfoomitock
require

.Pa., and Georgetown Law School,

•

Total*

^UciD^ted
anticipated

Phelps,

iary companies for their construetion costs and property acquisi-

KIRKMAN

ations

offering

the
'

Bankers Trust

and for the

tions. *

ELWOOD

: •:

National Bank

purchasing of
Miller is married, has one" securities to be! issued by subsid-

Mr.

construction

1957

they

a «a>

Morgan & Co. Incorporated; Guar- FHA down-payments have been by the horns and is compiling maanty Trust Company of New York; cut; interest has been hiked to terial which will enable banks to
jjarriman Ripley & Co. Incorpor- 5t4%;
and a system to control make their own feasibility studies.
ated; The First Boston Corpora- lender discount has been insti- Going one step further, t le Comtion; Smith, Barney & Co.; Hal- luted. We, ourselves, can't claim mittee is preparing specifications
sey>
Stuart & Co. Inc.; First a legislative victory; but at least for new and remodeled buildings

;=>LOCK ^xeudiige.

porti^ ^f ^eAiost

Orphans Home.

neu^Anrferred°will beSused°for

Trustee of the Masonic Widows &

son,

rsia-

wortnern

iYTV

of Trustees of

University of Louisville; and

the

yet.

preferred stock .at par ($100 per
Annlication has been made

•

-7

-share)

f ATe^v,Se 1Gm

'won

Co.;

Trans

Board

inc.

jS; 7°^

of^ommercefiand

...

Louisville

man

Associated

KVm\i.picv

lucky Chamber
V
•the

^rv
<jp.,

Biytn

Tnsuiante

director nbL the
.cfnpc

Tnajirnjipp

FiHoiitv

Citizens

Co.;
-t«h

District.

Reserve

President

the

Council for the

Federal Advisory

'Eighth

"lir,

'a«

Miller

Mr.

Participating

5.80% Preferred Stock

in Atlantic City, N, J;, Sept.

1957.

24,

a v\ta

» am

Mortgage Association.

presale.

are:

ABA at the 83rd Annual Convhn-

-tipr^

publicly

sold

Northern Natural Gas

elected Vice-President of The

was

$12,800,000 of the bonds due
through 1972 are not being

reoffered

Aiaah.*

1965

Blyth Group Offers

Executive

Division's

for-three

-Committee

Chairman for
a member of

1 rvn f»

—^

Co.; Braun, Bos-

We've had a couple of

year/to

££

times, to be on its toes, to know

scrutinize the unrealistic, fixed- the score, to have the answer; to
interest rate of Government-guar- keep you bankers informed, and
anteed mortgage lending. Wp^ve to be ready to put out a fire.
come to the logical conclusion th
Our goal is to reinforce the prithis kind of loan isn't going any
^;*^e%vstem*bv oreachplace. Bankers are fed up with ™e enterpnse^system by preach
vanishing down-payments, with
the rock. ribbed docti me 01
ridiculously long terms, with ;h ' ;;r[A h®nking bvsclline Mr
phony discounts, and with deeper and Mrs. America on the basic
wSlth"!";
and deeper encroachment of Gov- principle that "There's Nothing
x

ernment in the mortgage field,
After the reckless passage of the
ultra-ultra liberal Housing Act of
1957, our Division is more firmly
tional State Bank, Newark; Stroud convinced than ever that FHA
& Company Incorporated; Tucker, should administer GI mortgage
Anthony & R. L. Day; G, H. lending.
worth & Co, Incorporated; Dick &
Merle-Smith; J. C. Bradford &
Co.; Eldredge & Co. Incorporated;
R. H. Moulton & Company; Na-

Quite Like MONEY in the

R. W.

BANK."

Sulphen to Direct

Investment Plan

Robert W. Sutphen has been
appointed Vice-President of MuS. Dickson & Company Intual Fund Distributors, Inc., in¬
corporated; Bramhall, Falion & head that the present-day "fixed" tional underwriters of Managed
Co.,
Inc.;
Trust
Company
of rates just won't get the job done. Funds, Inc., it was announced.
Mr. Sutphen was most recently
* Georgiay Andrews & Wells, Inc.; if mortgage interest rates are to
Bacon, Whipple & Co.; J. Barth & compete in the money market, it's witli the New York Oty .Eastern
&

Walker

Co.;

Kidder &

Co., lac.;
R.

It's a mystery to me why any
one engaged in housing and home
finance can't get it through his

points'in Kansas, Nebraska, Iowa,

American

the

ciation
ciation,

•and

Finance

the

1953

•from

Bankers

Kirkman
JxiiKman

Mr
Ml.

-Vice-President

for

Co.; Branch Banking Rr Trnct Co.; just plain horse sense that a "free" ss rlirector of aecount service and
& Trust rn
office of Financial Industrial Fund
riKr Nafinnai
Rant*
^1..
S^_^apft"al7iSa.np % Hnftnn & Interest rate 1S the only way oat dealf,r rQiations Prior thereto he
Minnesota and South Dakota. The 5a£sa^
Lower down-payments simply
*e
gas is purchased principally from
£' grease inflationary tracks and will was with Oppenheimer & Co.
the Texas Panhandle and Hugo- Incorporated, Mercantile-Safe^De- not, by any stretch of the lmagiWith Scott, Bancroft
ton gas fields. It is distributed
^
attractjiny new moiTgage
(Special to The Financial Chronicle)

Committee

1957.

As-

was
was-

also

was

Jersey

New

the Organization Committee in
a member of the Fed-

,on

bu^er'Loeb
Co.,
money. On the contrary, lower
b,10 t+ornpany; Kand
down-payments will only increase
tural Gas, with executive offices
benatfer, Necker & Co.; lripp ^jie present demand for mortgage
in Omaha. Neb., owns 90% of the
v'i
S it
money; and today money isn't the
common stock of Permian Basin
p'
'
^aii!^orr)orated• S t e^rn eas^es^ Bling in the woild to find
Pipeline Company which pur- Brothers & Co^ Van Alstvne Noel for mortgages that are handcuffed
chases gas in western Texas and pothers &C° Van Alstyne Noel. tQ a Aflxed" interest rate that's
below the market.

locally

-1953-54 and

Legislative Council in 195556, He was elected ABA Treas¬
urer at a meeting of the AssociaExecutive
jLxceutive

Council
V.UUUCU

held
ucia

vention

;

Atlantic

J.,

Chairman

the

.and Director of the Chelsea

Title

-of;

and the Pennsylvania-Read-

the

Community
Council

Chest

and

Atlantic

-County and- of the Atlantic City
'Chamber

Commerce;

Trustee

Nnrthprn

Nafnr.nl

thp

member of

-and

President

and

-the

Board

Governors

the

Atlantic City Hospital Association.
Mr. Kirkman is married and has

« >°*» K'
White &
Tilney and Company.

Company,

$14,400,000. • Comparable figures
f°r 19^5 were: $104,368.0^0, operat¬
ing

revenue;

$12,843,000, net in¬

Hirsch Adds Two

ATLANTA, Ga.—Lawson S.
Yow is now connected with The

Sidney O. E. Dryfoos
Sidney O. E. Dryfoos, partner in

Weingarten
Sept. 20.

Co.,
"

passed away

tempt so
Don't forget, the

many

bankers.

Robinson

Ittc.,

Humphrey

Rhodes

Haverty

FRANCISCO, Calif.—Rob¬

SAN
ert B.

Bagnall is now with Scott,

Bancroft

Co., 235 Montgomery

Street.

Joins Walston & Co.

conventional

(Special to The Financial

Chronicle)

Calif.—Thomas S.
now connected with

JOSE,

SAN

stilwell

1957 conventional loan has come Walston & Co., Inc., 81 West
a
clara street

__The

Comnuttee

Santa

Sav 1 ngs

S!sr« Thom„„&McKi„„o„Add

Livesey, are concerned with the
business of running

the bank.

(Special to The Financial

strategic
Committee
on
Electronics is very much in the
The

banking

spotlight these days be-

cause we

bankers want to know

what automation is all about.
Building. What will it do for us, when can

Company,

He was formerly with Mathews, we get it,
Crews & Lucas.
cost? As a

Chronicle)

NAPLES, Fla.—Merrit
Jr. has

Complete Automation Plan

With Robinson-Humohrey
(Special to The Financial Chronicle)

come.

hplnw fha market.
No
wonder
the

mortgage is beginning to

•of Dickinson Law School and The

-Training- School at Vineland, N. J.;

—

Buzby, Inc.), Atlantic City,
of the South Jersey Gas Com-

Welfare

;ing Seashore Lines; past Director
i

„

sidiary, of .Northern Natural.
(Special to the Financial chronicle)
For^he 12 months ended June
MIAMI BEACH, Fla.
Monroe
30, 1957, total operating revenues
?f Northern Natural and subsid- J. Friedlander and Edward J. Miljuries were $116,539,000 and net
income was $15,009,000. In 1956, KlT-mTiSS
total operating revenues were Avenue. Mr. Miller was previ$111,280,000 and net income was -0usly with Sutro Bros. & Co.

•ter J.

-pany

Na-

Northern Natural Gas Producing
Company is a wholly-owned sub-

Board

.and Guaranty Company, Atlantic
'City; President, of the Flanders
'.Hotel Company, Ocean City; Di.rector of the Dennis Hotel (Wal•aiid

Peoples

Northern Na-

sells.it to Northern Natural. The

1957.

Sept. 25,

City,

10^7

cm\»

its

at
ai

the close of the 83rd Annual Con-

.on

through

tural Gas division.

-eral

.tion's
nun s

son

M. Long,

joined the staff of Thom¬
McKinnon, 882 Fifth Ave.,

South.

Joins Goodbody
(Special to The Financial

Office

Chronicle)

ORLANDO, Fla.—Jack

and how rquch will it Jr.^has joined the
matter of fact, it's later body & Co., 127 North

H. West,

Mam St.

(1472),

The Commercial and Financial

of about 5.1%
value

Bank and Insurance Stocks

in the

the present market value of the shares.

decade

was

Chronicle... Thursday, October 3, 1957,

Book

which

about 23%; earnings 94%; dividend

approximately 50%.
Dividend Record

tion

three principal components that went to make
up the
present Hanover Bank had long unbroken dividend records. If
the bank's organization is dated from Hanover
National's start

This Week—Bank Stocks
The

Hanover

This

bank

is the outgrowth

by mergers of three large New
York institutions, the Central Trust
Company, Union Trust Com¬
pany, and Hanover National Bank.
It has operated since 1873
under Central Trust Company's New York State Charter
granted
specially a number of years previous to the enactment by the
Legislature of the State's General Trust Company Act. Hanover

earnings; and in that

8.6%

earned

was

the year-end

National, organized in 1851, had absorbed three banks. Union
Company, dating from 1864, merged with Central Trust
Company in June, 1918; and in May, 1929, Central Union Trust

Continued

from

ginning
the

Unlike so many others in that
made solely to attain greater asset size under
single management, but rather because the two banks tied in so
well.

Hanover

had

been

Central Union Trust had

bankers'

and

correspondents'

There thus

being an excep¬
tionally well integrated institution, whose growth since that time
lias been steady and consistent.
•
';;, r f
■
'
-

the time

the

:-'r-

*■

Condition

i'.-,-"--'"

ASSETS

•

Cash &• Due from Banks!..
U. S. Govt. Obligations-:

$526,515,000

1957

countries, the solvency of our
governments, and the soundness of
financial

our
-

Estate

13,950,000

Mortgages—

2,774,000

Banking Ihuiscs,.—
Accrued

37,381,000

Interest

Customers' Liab.

Capital.

10,089,000

Received

■these
be

1,800,000

$30,000,000

Surplus

2,353,000

Accept.

Tales;'Tnl.,. etc.

Profits

■

inflationary

•

cessfully

162,343.000

A breakdown of these assets into

Cash
U.

28.6%

Obligations-- 14.8
State, Municipal and
Other Securities-,---—.
3.1
Following is

.50.7%'

forts

62%

years

5 to 10 years-Over 10 years-*Due in

five

1951

bers

mutually reinforce

82%

1953

72%

*18

1951

70%

*28

tBused

years,

1955

58%

*30

must,

sources

of gross

ler

Loan

interest

1950

u—

misc. 25

loans, this

55%

56%
14

"21

There is

24
*

21'

JfMM

are

1956

for

a 36%
in the gross income de¬
being considerably more profitable'
security holdings.
;

Book

Operating
Earnings

Value

1947—
1948

$35.40

1950

$1.17

30%

24%

300

1.17

27%

small, find it difficult

1.99

323

1.17

real

1.97

343

1.17

2.17

investment; and income

358

27%

1.29

2.53

28%

tion becomes

39.47

29%
30%
32%

...

—

357

businessmen,

many

estate

becomes
more

3 954

large

and

3 955

1956

—

Such

uneven.

1,33

33%

economic growth as occurs is fre¬

quently ' poorly balanced

3.23

383

1.62

45%

3.78

372

1.75

451/4

44.06

39%

completed

38%

;

wasted

that

half-

tive projects.

otherwise

inopera¬

In the United

ress

this

decade the

gain to the stockholder,
consisting of the
his equity plus cash
dividends, amounted to $23 09
share, or at the annual rate of $2.31. This was
also at the fate

per

States,

achieving the objectives

ing

has

economy

satisfaction

and

given

Members

New

York

American

Stock
Stock

Exchange
Exchange

120 BROADWAY, NEW YORK 5', H. 1.

Telephone:
Bell

INDIA, LIMITED

BArclay 7-3500

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager Trading
Dept.)

Specialists in Bank Stocks

trying
have

Uganda, Zanzibar, and
land

Bank

and

also

description

exchange
and

invest

actually

saved

than

out

our

though we feel that we
gaining in the battle of inflatiop in the United States, we can¬
not

relax

moment.

our

efforts

for

one

ideas appear, we
must consider them
soberly. As
new facts
appear, we must ana¬
lyze them carefully.
We must

business.

Executorships

undertaken

take
)
.

'•

■.1

;

new

precaution

every
'•

economic

and

reasons

understanding. The ulti¬
objective is to improve the
people and their stand¬
of living.
This is why we
ali

must

bility

follow policies
maintaining our

and

which

our

will

to.

assure
•

is" to

economy

directed

vested.to finance the construction
of

plant

and equipment,' powep
tools,"and all the thousands

and

of other things, which make for
production, and jobs, and the ad¬
vancing productivity, out of which

compensation can be paid without
inflation". Both domestic ^accumu¬
lation

of. capital.and

vestment:
:sound

beneficial

the

trade.

world

trade

since

meeting has been
sharp expansion in

world

pressures

tries.

The

has

expansion in

not

been

evenly

result,

others

nificant

have

coun¬

substantial

payments

developed

while

various

among

deficits
have

positions

some
areas,
recorded sig¬

increases "in

their

The

inter¬

credit fa¬

cilities of °the
fund
have been
called upon to enable some mem¬
bers to gain time to
adjust their

international accounts.

worthy

that

continue for

these

It is note¬

adjustments

the most part

pursued by broad
measures
of
fiscal,
monetary and
economic
policies that are designed to
strengthen the fundamental posi¬
tion of the currency and the

rather

and

than

which

ures

isolate

This,
right

through

restrict
a

are

econ¬

meas¬

world

trade

country's economy.
convinced, is the

give, i the, investor, assuranee that
capital "will be preserved and

his

that it

can

earn,

are

living in a world
ject to .many changes in the
rents

income for him. .'

In the

making of
decisions, each of

economic

our

countries

our

in the

long run should strive for
maximum " expansion of our
capacity

through

the

investment of our own
savings. As
conditions become - more attrac¬
tive, private investment would be

tries of the free world.
dens

our

consequent
of

The bur¬

taxpayers

restraints

budgetary

our

and

the

each

upon

outlays

con¬

stantly remind us that there do
exist limitations upon our several
abilities to meet government ex¬
penditures in the domestic and in¬
ternational
is

that

fields.

well

credit

various

for
can

means

remember

generated by
which could im¬

undesirable

pose

consequences,

but true capital must be saved
by
the hard process of sound
plan¬

ning and careful expenditures.
All
these
things go hand in
hand.

ples

The

well-being of the

the

upon

world

development

the

this

world

for

the

flow

effort, the
are

sound

common

sults

are

concern.

and

investment

expansion of trade
attainment

coun¬

nations

interdependent,

accumulation
of

peo¬

dependent

economies in the individual

tries.

capital,
and

the

matters of

Furthermore,

the

maximum

benefits

requires

re¬

the

concerted efforts of the govern¬
ments of the various countries
and

these institutions which

ing

course.

here.

meet¬

are

we have
seen, at
it all must be a
pur¬
each
of our nations of

the base of

Dollar Gap
We

foreign in¬
encouraged, by
which

;

expected to provide international

can.

;financial; ipolicies 1

financing with less dependence on
the budgets of any of the coun¬

The year that has passed
the last annual

marked

steady

sta¬

own

free world.
.

If this

economy.
grow

any

;on

prosperity,

own

for all the peoples of the

run

primarily

domestic

productive

omy,

Even

£3,104,887

conducts every

banking

Trusteeships

are

£4,562,500
£2,851,562

rising

earnings.

Protectorate.

Authorized Capital
Paid-Up Capital
Reserve Fund__

The

Somali-

been

advances
indicate, among
things, that we have been

other

West End (London)
Brancht
13, St. James's Square, S. W. 1.
Branches in India, Pakistan.
Ceylon,
Burma, Aden, Kenya,
Tanganyika,

has

some

price

to the
Government la
Kenya Colony and Uganda
Office: 26
Bishopsgato.
London, E. C. 2.

Laird, Bissell & Meeds
Members

yours—we

accompanied
prices.
These

however,

Head

STOCKS

this

have had great
prosperity during
the past year.
Our prosperity,

Bankers

INSURANCE

BANK

NATIONAL

and

both

concern.

country—as in most of

BANK

our prog¬

sound currency and an
expand¬

increase in

as an

is important

Trade

national reserves.

^Adjusted for stock

buy

well-being of

depends

•

ratej^jt niust provide the condi¬
tions in which
capital can be in¬

differing intensity of inflationary

1.50

are

can

distribu¬

1.33

resources

nation

;

normal cir¬

■

favorite

383

31%

other

the

374

40%

borrow;

2.74

economies

2.81

42.90

world

distributed throughout the trading
countries, partly because of the

41.84

—

further

toward

■

mate

ards

was

Encouraging Investments

j.It is obvious that in

mutual

40.62

1953—

thinks of trade

for

lives

are

38.47

—

1952

Low

gold and dollar assets.

the

long

$338

37.00

1951

2.00

Ilitrh

growth

heavy
and the benefits of
stability are
great. Inflation destroys existing
savings
and
discourages
new.
Money markets become unstable;

Per Share*

Dividend

of the most

exports.

both

country.

The costs of inflation

—Price Range—

Assets

economic

the

end in itself.

other successful basis

37.82

3 949—

$1.95

36.26

—

Invested

durable

any

Ten-Year Statistical Record

None of

people.

our

better, ful¬

1951

source

per dollar invested than

our

52%

1953

In this period .there has been

rived from

for

41%

1953

can-do

international

gained
$200 million in

almost

sound

countries, which, in turn,

50%. 55%

1951

Interest & div. from securs. 36

Fees, commissions

money
that means in

from

cumstances the

mutually bene¬
among the free na¬

one

mover

this quarter

high level with pro¬
expanding, while at the
same time
avoiding inflation. Our
expanding production will require
larger imports which will be ben¬

prosperity
of enduring value

lives

trade

record

our

us.

duction

economic

—

constantly confront

this

transactions

efforts to meet the problems that
will

private U. S. capital and

rest

that the rest of the world

separate national

economy at a

50%

our

trade is to maintain the American

can

maintaining

and all

period
.

objective of

States

Currency

in monetary val¬
view, this must be the

In my

result

ment of

the

hand

important things that the United

For this reason, I want to em¬
phasize the interdependence of all
of us upon the success of each of
us

with soundness

eficial

100%

same

fund

march hand

can

Wc believe that

individual

along with and based
.

growth

economic

only on competitive conditions of
price and supply.
J

has

Every
Governor at this
meeting is con¬
cerned with
maintaining a sound
currency for his nation's economy.

large

that

tions of the world. This
expansion
not to be had
merely
for the asking.
It can- be based

as mem¬

and
our

believe

of trade is

situation.

action^

...

ficial

suc¬

continued

imports by about the
margin as in the first quar¬
our

development

continued ef¬

attain

Sound

*39

income ill the

are

continuing vigil

money.

based
A breakdown of
follows:

the

doing everything that
humanly possible to keep in¬

countries,

the

bank

keep .to

1956

61%

*42

the

growth

nearest call"date.

efforts in

—

cooperative

sound

J 952

inflation

our

with

0.5

Maturities f

Up to five

deal

2.1

—

past 7 years;

exerting

Banking Houses—
!
Miscellaneous Assets.—

Our

1950

0.2

was

exports

ter.

are

U. S. A. Needs Imports

States,

rate

Real Estate Mortgages..-;

Our

services

A basis goal of the nations
rep¬
resented in these meetings is the

encourage enduring
the
United

the

we are

comparison of Hanover's United States Govern¬
bond portfolio
by maturity categories, for the

ment

exceed

must

pressures

been less than in many

principal categories follows:

Loans

S. Govt.

Nearly
prices are

though

$1,840,607,000

necessity, many
and; troublesome decis¬

values.
..

and

ions must be made if

26,343,000

'•

$1,840,607,000

costs

resisted.

difficult

;

100,000,000

Uhdiv.

36.206,000

pressures

worldwide.

seem

ues.

rising and demands for capital
press heavily on the supply
of
savings. We are all agreed that

$1,625,133,000

Acceptances, Nek
Dividends. Payable

systems.'

Inflationary

•

Reserves,

and

The

our

LIABILITIES

933,619,000

Loans
Heal

30,

272,0(11,000
56,990,000

State, Mimic. & other Sees.

goods

growing and strong.

heavy shar^of responsibility for
strength of the currencies of

now,

Deposits

change from the first: quarter re-suits, and a return to the earlier

There was, however, a very
increase in private United
States capital investment abroad.

the

-v

June

through

and

flation down and to keep America

institutions bear

our

everywhere
of

1950,

that

$446,000,000.
$1,625,000,000, an increase of approximately 265%.' Hanover con¬
tinues to occupy a prominent
position with respect to its trust
business. It operates eight branch offices in Manhattan besides
the
head office, with two
complete banking offices in London and a

Statement

gold

banks and

Union-Hanover National merger
At the end of June, 1957,
they were

branch in Paris, f

one-

the

quarters of 1956,
international transactions

same

Central

were

fact

Most of us are heads or senior
officials of treasuries and central

into

came

about

situation in which the world

In the Nations of the Woild

bank.

dollars

g.aining;-;dollars;.

large part of its operations concentrated

in trust and similar lines.

deposits

Development of Sound Economies

•

the

three

not

was

atten¬

had been marked
by continuous
gains of gold and dollar assets by
the rest of the
world, amounting
in all to nearly
$13 billion. Pre¬
liminary figures for the second
quarter of
1957
show
a
sharp

earnings about 8% higher than

The merger was most logical.

losses

with

first

period, it

drawn

six

through

dollar position of the rest of
world.
In the six years be¬

the

page

billion

and

Trust

and Hanover National combined under the title
Central Hanover
Bank & Trust Company. This name was shortened to the
present
title in July 1951.
r
V

the

1956

Considerable

been

resulted

book value.

This department looks for 1957

in 1956.

has

haif

about

year

1957.

that during that six-month
period
the
transactions
of
the
United
States with the rest of the world

the uninterrupted record
goes back some 104 years.
Under the
Central Trust charter the continuous record
stands at 84 years.
The present annual rate is
$2.00 a share, and with the price of the
stock around 45, the yield is a
generous 4.44%.
The stock is
selling at about 11.9 times 1956 operating earnings. The
$2.00
dividend is about 53% of 1956

Bank

during

October

March

All

By ARTHUR B. WALLACE

prevailed

months

suit
sub¬
cur¬

those monetary and fiscal
policies
which will result in
healthy, sta¬

international payments.
Recent developments in our own

ble and growing economies.
then can we secure for our

international accounts represent a
decided change from thq
position

ples

and

things of life.

' '

of the
•

Only
peo¬

better
.

they have been recently. However, with total demands for longterm funds in 1958 giving every
relaxation indication of remaining close to
the huge volume of 1957 and no
J"
"
"
"

would

stimulus

Nonresidential

New Climate for Interest Rates

finally, such as to promot some
of credit restraint.
material increase in the flow of
in such mortgage debt in 1958 is
current savings in sight, expecta¬
likely to approximate or exceed
Questions for Credit Policy
that of the current year.
The basic goal of Federal Re¬ tions of a radical change in the
building,

continues strong, and the increase

Another significant factor was the
unexpectedly large amount of new
Federal borrowing by the Treasury in the
Reserve
authorities
have
kept spring, necessitated by substantial
member bank reserves from in- increases in defense spending and
creasing ! significantly - in recent, large redemptions of savings bonds
years, they have not on balance and maturing marketable governreduced
them.
The
commercial ment securities,

new

financing to business and in-

dividuals in the course of the eco-

in sum, prospects are

nomic boom. Although the

demands for

long-term

1958 will be

of the same gen-

eral

moderate

strained

supply,

quidity

Reserve

has been
growth' in

achieved

pace,

Federal

the

What

magnitude as in the past three
years of peak demands, and that

cssiiig in the total volume of
new
fidancing is likely to be

any

pears

viewing

1957. rates on new issues of Treasury
has bills are still close to their recent

re-

subsidence in demands for
greater pressure upon li- funds in the immediate offing,
positions generally, and
The corporate financing calen-

of capital
flow of funds
from institutional and individual
savers at the going rate.

dar js stni large, as is the volume

borrowers upon the

of municipal new issues in prospect. Also, the large institutional
investors remain heavily corn-

interest rates
of an easing of
credit, as some have advocated,
would not have come to
grips
with the underlying pressures in
-the capital markets, namely, acfive business and private investment,
inflated costs of capital
projects, a shortage of savings,

mitted through the end of this

dependence

increased

Efforts

down

hold

by means

and beyond. Demands for
bank loans, finally, are increasing
seasonally, and instalment credit
continues upward month after
month. The crucial factor in the
sentiment of the market place today, however, seems to be not so

year

mnvp

ranidlv

any

commercial

perienced
in

crease

banks
a

funds

have

not

psy-

would have
Nor would
necessarily have bet-

rholosv and pressures
been

even

such

action

stronger
nncitinn

Wvm«rwc

first

thev

credit

found

have

lone-term

while

fnr

mi<*ht
more

„

ability

Also,

absorb
flow of

the

t|) life insurance companies,
savings banks and savings

mutual

and

loan

below

associations

running

while the
growth of corporate pension funds
a

year

ago,

growtn or corporate pension funds

However, any drop in the total is no indications of any real upsurge
likely to be fairly gradual, espe- in the flow of funds to savings in-

eially as aggregate capital invest- broad trendConsistent withseems
stitutions.
the
of savings, it

clearly

c0^P01^e a*Jd
The decisive
upon market condhTons
market.

7Lrke_

influence
however,

and of another major upturn in
interest rates. Major relaxation of

credit policy, however, would be
an unrealistic
expectation until
there is convincing evidence that
the investment boom as a whole,
and
not merely
the business
spending sector, is levelling off;
that the shortage of savings is

being eased; that the rise in costs

and prices has been effectively
halted; that unemployment is be-

coming troublesome; and that the
hazard to stable economic growth
posed by the inflationary psychology of our times has been clearly
^
eliminated,
Conclusion

look,

suggests

then,

United

entered

restraint

credit

0f state and local governments as

fUbHc upward.
W0F^
tinue

con-

time also in 1958.
A

foiA

strategic factor in the outlook

Inan

increases

and

their

gages
and
municipal

the commercial banking system—
wouldnftrtfnrrofthe banks to expand
enable a
Inonc

their aggregate holdings of loans
and investment securities more
rapidly, thereby relieving some of

Cobb,

87,

pioneer

and leader in the development of

electric, gas and
utility companies

transportation

and one-time
Chairman of The Commonwealth
&

passed

Sept. 30.

Mr. Cobb

Corporation,

Southern

away

began his career with
„
,

P!a Railroad bystejn

n
Grand
~

Rapids in the engineer¬
ing and maintenance of way de¬

came

Subsequently

Assistant

the

be¬

General

Manager of the Grand Rapids Gas
Co.,

General

Superintendent

the Detroit City Gas Co. and Vice-

during President and General Manager of
of the Saginaw-Bay City Railway

measures

and

further

sig-

a?e

and Light Company.
In

1906

was

called to New

resurgent of infla"s'"f*'™ ^

n'rta"

surely permissible
credit
restraint

that

some

suggest

has

made

contribution to slowing down
.

■

York

the firm of Hodenpyl

upon

event, interest rates are probably
around their peaks for this phase
of

the

business

cycle,

and

long-

Vice-Presi-

dent and Chairman of the operating committees of the various
electric,
gas
and transportation

properties with which it was identified.
He was one of the organizers
and first officers of The Commonwealth Power, Railway & <sLight
TT
^ Tho rnm
monwealth & Southern rnrn
TT1 f)HW63ltn & SOUtilGm Corp. ClUr
v/Orpi
ing the early part of 1929, Mr.
Cobb became Chairman and a
member of the board of directors.

thehfJlkP llttOH inflation. In that Co.
investment HlfljltlOn. Til
boom and putting
brake
a

Hardy & Co.

Z-

^lhe strains in the financial mar- 01 tne ousiness cycie, ana long- memuei uj. mc
.~:nQ*
t'y
means the sole kets and contributing to an easing term borrowers may find market He retired from this offme in 1934
reas<m for the weakness in hous- o£ interest rates. The final issue, conditions some mpnt s hence a- -;as succeeded by. Wendell L.
securities, ing activity, an easing in the flow therefore, is the outlook for credit somewhat more favorable than Willkie.

tight

reserve

materially c u rt a il e d
new
investments in mort-

positions

by the public utility bank¬
of la"
bo":> ,are. continuing to advance, ing organization of Hodenpyl,
__
__ =
but .barring renewed troubles on Walbridge & Co., and upon disthe_ international scene, the prob- solution of that firm organizers of
in 1911 Mr.
Cobb was one of the

Z ability of

three years. An easing of credit
policy—synonymous with a more
generous provision of reserves to

Cobb

Bernard C.
Bernard

the

nificant interest rate increases

fairly

push upon 1958; even if starts do not advance,
bond yields was the fact that the tbe rising costs and growing size
expansion in the volume of new 0f new homes, together with a
offerings came at a time when iarger amount of alterations and
many long-term lenders were al- additions
to • existing dwellings,
J
TV/TAvn_
'a
•
1. •
•
ready heavily committed. More- suggest continuing high requireover, the commercial banks, faced ments for home financing. Morewith large loan portfolios, further over> although the tightening of

total of

has

Demands for real for interest^ rates, fmalijs is the ,ionacy spending seems to have
mortgage monev in 1958 position of the commercial bank- #loriary spenaing seems to nave

Contributing to the

that

reappraisal,

additional

which

Banks will have

$826,000,000 notes outstanding.

boom

phase—a phase of

new

and

pause

business

States

Loan

partment.

This review of the^current out¬

proved to be an unexpected surge GS|a+e
in new corporate
plant and equipment appear to he
be
debt_ financing may also be somewhat above 1957. ing system. Reflecting the
accompanied by larger offerings The <jecune jn housing starts of sustained pressure on bank re- heading for a r somewhat lower
on the part of state and local govpast two years seems to have serves since 1955, the total of bank level in 1958.
ernments,-and bond yields soon bottomed out, and current guesses loans and investments has i inIt would be unrealistic to claim
resumed their rise to new heights. are for a modest improvement in creased only slightly in the past
too much for credit policy, but it

notes,

used to re¬

will be

offering

the

not unlikely- Costs>

the

consolidated

non-callable

—

•

during a period of hesitation and

Savings Outlook and of retirement funds of state restrictive
deem
$138,000,000 of notes on
and local governments seems to
Obviously, the recent dampen- their maturity on Oct. 15, 1957.
be only slightly ahead of last year, ing of business optimism has some The balance of the proceeds will
Fire and casualty insurance com- bearing upon the outlook. Cur- provide funds to the Home Loan
panies continue to wrestle with rently, the added caution apparent Banks to make additional credit
+ubusiness
community, tounfavorable underwriting experi- in the bus
regard to business spending on ence which cuts into their invest- gether with signs of a topping off available for their member instinevv Plant and equipment; the ment buying and there is little in business investment, argue tutions. completion of the offering
Upon
trend of manufacturing outlays sign of improvement as yet.
.
against the probability of further and the retirement of the notes
appears to be heading downward.
At present, therefore, there are intensification of credit restraint falling due on Oct. 15, the Home

latent"

ctahilitv

and layoffs, mainly in dated Oct. 15, 1957, and due April
defense work, total industrial ac- 15, 1958, was made yesterday
tivity continues well maintained (Oct. 2) through Everett Smith,
fiscal agent of the banks, and a
and employment has set new records. So far, there has been no nationwide group of securities
evidence of cumulative weakness dealers. The notes are priced at
in the business picture as a whole, 100%.
Part of the net proceeds from
and credit policy has remained
ana crean

demonstrated the menj. programs by borrowing. On demands and the savings supply
many imponderables that can at- )_)aiance> therefore, the volume of in the capital markets. This might
feet the movements
of interest col.p0rate new financing next year suggest some easing in bond yields
rates.
The big increase in long- j
likely to be not far below the as the year moves ahead, although
term rates came- relatively late in lecord level of 1957. One unpre- it must be remembered that many
the boom—mainly in the past lz dictable element is the extent to lending
institutions are heavily
months or
so,
at a time when which companies will seek to im- committed for at least part of
economic activity was approxi- prove their liquidity positions by 1958, with the terms of financing
mately on a plateau. There was raising funds in the long-term already established. Consequently,
a
temporary reversal of the rise market; efforts along these lines terms for many borrowers will re¬
in the early months of 1957, partly evidently are .already under way, fleet current market conditions;
because
of the belief that the and m|ght well assume greater moreover, many important invesFederal Reserve was easing the proportions should market condi- tors, whose absence from the bidpressure upon the credit markets tions
turn more favorable for
™
JEraV»"ufhl
and partly also because large re- borrowers.
unds fn 1957
wm probably
demptions of savings
bai^ were
increases, on the other be active bidders at least to some
increasing the flow of funds into hand> are Jn sight for new issues

have

PPonnmic

oiexcessh-eeasYng ofcrcdn

Hasty

rise. Also, despite some production

important industries, such
steel, chemicals and

overt

whether
ionff_riln

in- cutbacks

beinS bolstered by long-

/ active business, full

nnr

employment
rising
costs
and questioning in the financial marprices and general optimism, the g„f„ ....
th„ h„sinpaa „-n,.pi
d /or a policy of credit re- would mereI add to the strength
stimnt has been quite obvious; in o£ infiation and the difficulties of
fact, the Federal Reserve authori- restraint in the next resurgence
ties have evidenced better recog- of economic activity. A more re¬
nition of economic trends and warding policy objective, both for

available, this advantage ment is
reasonable to expect savings inwould very likely have been olf- range expansion programs m stitutions (except the commercial
set, and possibly more than offset, ma'7
banks)
to
receive
a
somewhat
by the higher costs of the projects as aluminum,
uy
e
6
petroleum. Public utilities, more¬ larger volume of funds in 1958
to be financed.
over,
will probably show larger than in the current year, and
capital expenditures in 1958, and while^this increase is likely to be
Recent Market Pressures
.
these are the industries which relatively small, it may help narRecent
market developments fjnance the bulk of their invest- row the gap between investment
readily

In. the past

business correction

ex-

corresponding

their

investments.

busi-

inflationary

and

case

they remain a constant threat to

there is little
important infar

would have re- Investment and
ceived
an
added stimulus, the
Of primary importance, theresavings
incentive
would
have f°re» is whether the huge investbeen reduced
cost and price in- ment boom of the past several
creases
would have been facili- years is now topping off. —1A1This
tated even more than was actually would seem to be the case with
the

the social and nolitiral
of our economic so-

this year. Admittedly, time de- prospects than many of their a stable economy and stable inter¬
est rates, is to encourage a flow
posits of commercial banks have critics.
risen steeply in 1957, presumably
Very recently, the difficulties of of savings sufficient to meet the
as a result of widespread increases
making credit policy decisions large capital requirements of eco¬
in interest rates paid. However, have been heightened by the con- nomic growth.
some of these additions probably
troversial economic outlook. Price
reflect shifts from other savings trends have become mixed, with
institutions. Another part appears some
raw
materials decidedly
FHLB Notes on Market
to represent transfers from de- weak but prices of a wide range
Public offering of $199,000,000
mand deposits, which have grown of
finished goods posting new
very slowly
this year; thus the highs and living costs still on the Federal Home Loan Banks 4.75%

mur*H

institutions

frar

must be weighed the

contrary,

trenched*in

chances of a subsequent painful

in personal savings so

crease

questions confronting the market
piac@ & word of caution may not
Le amiss Inflation is stronslv en—

s^)n wou^d greatly increase the

for the flow of savings,

evidence

much the large demands for funds
and consequently strenuous com- looming over the near term but
petition for funds. On the con- the question whether business,
trary, it can hardly be doubted and specifically investment spendthat if the Federal Reserve had
may slacken sufficiently to
kept credit easy in the environ- bring about an easing in credit
ment of the past three years, the demands and interest rates in the
money
supply ; wouldi have ex- year ahead.

neskTnvestment

the

do not appear justified at this
time;JV - *
* Looking beyond the immediate

strained is that unbridled expan-

Despite some encouraging reports
to

environment

market

investment

and of recession and unemploy- cietv -A subsidence of inflationment on the other. Indeed, at least arv nressures for the moment
one valid argument against per- should not cause them to be:formitting a boom to proceed unre- pottpn or dismissed On the eon

Against this outlook for fmancing demands

highs. Moreover, it is difficult to prospects

the 1 money see any

policy, as the authorities
repeatedly stated and demonstrated over the years, is to
foster conditions conducive to economic growth at a rate sustainable
over the long range. This means
minimizing the economy s ex—
Posure to the hazards of boom
and inflation on the one hand,

that total serve
financing have

At present, the bond market apagain to be critically re- fairly moderate. Furthermore, the
the outlook. Once more, recent issuance of 12-year bonds
obligations and other securities in as in the spring of 1956 and again has put the market on notice that
order to make room-for additional of 1957, there is
some concern the Treasury has not shelved its
loans, and this has contributed to over the course of business, and efforts to improve the maturity
higher short- and medium-term this deterioration in sentiment has distribution of the Federal debt,
and it would seem prudent to asrates, but despite the restrictive been accompanied by some imcredit policy, bank loans surged provement in
bond prices and sume that any relaxation of pressures in the
capital markets will
upward beyond all previous rec- slightly lower rates on, new fi¬
ords in 1955 and 1956 and have nancing. §hort-term credit, how- bring additional Treasury offercontinued to advance, although at ever, is still very tight; in fact, ings, possibly of longer matuuties.

banks, faced with large loan demands and limited reserves, have
cut their holdings of Treasury

mortgage funds later in 1958 policy, and specifically whether
probably
provide , some^ business conditions, employment
to
residential building, and price developments will be

Continued from page

(1473)

The Commercial and Financial Chronicle

Number 5678

Volume 186

uedlt /

(1474}

The Commercial and Financial
Chronicle.

-Continued

from

page

The same principle can be
ap¬ excessively high. It has made
plied to State credit. Many States sible the avoidance of voter

restricted in the purposes for
which they can incur debt—some
are

Financing Intei-Municipal
Public Project Developments
municipal

units

raises the question of
debts and
tions

government, especially
over-lapping involved.

debt limitation

well

restric¬

While

where

State

by provisions of their State Con¬

this

stitution.

other

constitutional

greater
credit

credit

of the issues would

could

that

support

studied

adequately
secured
projects that will render

revenue

confused

the citizens of the State.

difficult.

and

little

time

taken

•

effort

that

Authority

easiest

The

way

deal

with

the

obligations

The

second

would

laws

by Banking

Connection

Because

commercial

construction

gen¬

✓

officer

bank, and such insti¬

tutions under the
Banking Act are
not

permitted

writers

act

dealers

securities

type

more1

issued

guaranteed the

;

had

Not Influenced

favorable basis.

state

needed

be accomplished and financ¬
ing done on a more orthodox and

that

obligations

are
our

under¬

in
-

municipal
not
general'

state

their

briefly to refer to is

the financing
done by various

for

the

of educating the citizen¬
ship, where a vote was necessary,

Bonds

amend

necessary

purpose

Special Revenue

this

much

the

political subdivisions, I can imag-.
frequently helpful in un¬ which has been
ine some of the raised
eyebrows
derstanding the
application
of State
agencies
in the State of and
knowing smiles on the faces
suggested
legislative changes to Georgia. The constitution of the of
or
the State Legislature, where
some of
my investment bank¬
give a few specific illustrations State limits
rigidly the purposes ing friends.
legislative changes were needed,
-7
7
/
'
where
such
changes have been for which the general credit of
would have paid substantial divi¬
Let me assure them
made or where
they might have the State can be pledged.
jnd you,
dends, in the form of lower bor¬ been
however, that although pt believe
wisely used.
The purposes include
rowing costs.
;
only the sincerely that the public interest
following:
"To
The point I wish to make is that
Connecticut Example
repel
invasion, would greatly benefit by the unt
suppress
insurrection or defend derwriting and
authority and special revenue fi¬
As we are meeting in the
distributing ability
capital the
State in time of war."
which banking institutions Could
nancing, while proper and desir¬ city of the State of
Connecticut,
able
in
These restrictions were
many
cases,
has
been it may be appropriate that we
adopted contribute as dealers in revenue
overdone, because it was the easy turn our eyes first in this direc¬ following the unfortunate exten¬ obligations, this fact has not in-^
a

If
not

are

bonds issued.

may

borrowing power not have been suitable for
any an essential and
greatly needed
the various units involved, it
other
form
of
financing
there public service of wide benefit to
clear the picture is frequently
were a good many instances where
as

restrictions

eral

providing reasonable protec¬
tion, then it is time to make a

State

limited

be desirable.

may

been

than

ap¬

.Thursday, October 3, 1957

necessary,
by
amendment to give

flexibility

number

some

These provisions should

broadened,

has

pos¬

proval required by State or local
laws, but there are times when

this

dilemma

many

cases

has

issue bonds payable sole¬

been to

ly from special revenues or special
In this way the
general
credit and taxing power
of the
governmental units concerned are
taxes.

not pledged, and consequently the
borrov/ing power provisions and
debt limitation laws

do not tech¬

nically apply.
As

convenient

way

necessary funds.

raise

the

The higher rates

tion

excellent example may

be cited.

Connecticut Expressway

sion

State

credit

Century in connection

the

fluenced

19th

with

rail¬

the

redommenda-?

lions I have made.

from such trouble¬ prevailing today make it difficult Revenue
road and other
and
Motor
Fuel
Revenue and authority
financing which
Tax
financing
some restrictions the sale of spe¬
or
in the 1870's resulted in default
impracticable to employ the bonds were
authorized
in
the
gained great popularity in recent
cial revenues or authority bonds special revenue
procedure in some amount of $398,000,000, to con¬ and repudiation. This experience -years with both issuers
and in¬
has been a most convenient and situations
because
prospective struct an express highway from brought the laudable desire to vestors and as
frequently happens,
useful device. In many other cases
earnings will not cover debt serv¬ Greenwich to
protect the credit of the State •under such
Killingly and to
circumstances, was A
this form of financing has been ice and
against any abuse. While this is In bit overdone.- I am
operating costs by an ade¬ finance the cost of such
not in dis¬
project.
widely used and the bonds have quate margin.
Because the State would derive be
commended,
such
inflexible agreement with Mr. Robert
Moses,
afforded
excellent
investment
provisions are hardly, in keeping a
substantial benefit from this
respected champion of such fir
high¬
quality and have been well re¬
Prefers General Obligations
way
it was deemed appropriate with the services demanded today nancing, as to the practical adr
ceived by discriminating investors
Even where such
coverage
is that in addition to toll revenues by citizens of their State govern¬ vantages that are sometimes pres¬
Commendable
care
has
usually ample there is reason to examine a lien on the State motor fuel
ments.
The State of
He
Georgia has ent.
tax,
recently said - — "The
been exercised by issuers, under¬
the possibilities of using general as the title of the bonds
sought to provide
the
essential nearest thing to business in
suggests,
gov¬
writers and municipal attorneys
obligations as an alternative and be pledged to secure the payment services and facilities, but because ernment is the public
authority-,
in
providing suitable protective thereby gain the
of principal and interest of the no serious effort has been made which
is
advantage of
business
with
private
features.
to
amend
the
better borrowing rates.
excessively rigid capital
under
Actually, bonds and to improve the credit
public > auspices,
Special revenue bonds are not where the purpose of the financing position of the Authority.,
provision of the State Constitu¬ established
only when both private
tion it has had to do so at a
new, having been used principally is
such
that
much -enterprise
special
revenues
In effect the State was
and? routine .govern¬
pledging
for public water works
higher cost than should have been ment
purposes might make it suitable to consider its own credit to
have - failed
to
meet
a
an
degree in the
in various sections of the country the sale of revenue
necessary.
bonds and the form of dedicated
urgent need.
taxes that re¬
'
■
for over 40 years. The first water
setting up of an authority is fa¬ moved
As in
Pennsylvania, the prin¬
"This device is often attacked
largely the risk element in
revenue
bonds issued, I believe, vored, with the view to
assuring the bonds, but because the
ciple of long-term leases to state because it is too
pledge
independent of
were in 1897 by the
City of Spo¬ a business administration as dis¬ was of a limited
or
local public
agencies is em¬ daily pressures, too
character these
unapproach?
kane, Wash.
The
purposes
for tinguished from political manage¬ bonds had
ployed. Thus schools, state hos¬ able
to
be
marketed
as
by the boys andv; therefore
which revenue bonds have been
ment, it is suggested that with special revenue
roads and
bridges have •essentially undemocratic."*
obligations. When pitals,
used have expanded
tremendously proper legislative
been
financed
changes
the a later issue (the fourth
by
the
sale
of
series)
I am
during the past decade as has also bonds can be issued as obligations had
suggesting it is not impos¬
to be sold to meet the cost various state authority bonds and
sible to retain the
the volume-of such
practical "ad¬
financing. The of an appointed authority or com¬ of a
heavy construction schedule, the-security back of the bonds is
vantages and at the same-time
conspicuously successful financing mission and they can carry the the
lease
payments
to
the "secure
higher rates recently prevail¬ annual
'the benefit of a* substan¬
by the highly respected' bi-State unconditional guaranty of a State
ing appeared to the State exces¬ authorities for which the state
tially improved borrowing rate by
agency, the- Port of New York or local unit of government. The
sive when a tender was received either
directly or indirectly is "means of
constitutional or legis¬
Authority, dates back to 1924. The New
York
Thruway Authority for revenue bonds. It was then liable. In view of the fact that
lative changes.
character of its facilities and serv¬ and the New
It appears to bd
Jersey Highway Au¬ decided, with legislative
many of these bonds are payable lime that some start is:
approval,
ices has broadened from
made in
bridges, thority bonds which are guaran¬ that the bonds be sold
as
obliga¬ in effect from state funds made this * direction: While- the time
to tunnels, freight
terminals, air¬ teed by the respective States are tions guaranteed
by the State. In
ports, bus terminals and dock fa¬ in fact such obligations. The use
available on a contractual basis required to make such changes is
this way a much better rate was
cilities.
The
;somewhat discouraging;, the ob¬
original
Triboro of general credit under these cir¬
secured.
This adds up to a sen¬ "each year, it doesn't make much
jective will never* be realized
Bridge Authority has similarly cumstances would not in
many in? sible decision in
every way.
The sense that the cost of financing unless the effort is started. •
expanded its operations but in stances result in
V
any
increased financing is done at a much lower
somewhat different directions.
burden on the general
taxpayer. cost which benefits the "Express?
The public favor and investor The revenues available to meet,
way project" and ultimately the
confidence expressed in the Penn¬ operating
and debt
service re¬ citizens, and there
is in fact no
on
sylvania Turnpike and New Jersey quirements
special
revenue
added
burden- placed
upon
the
bonds would still be used to
Turnpike projects gave
great
pay taxpayers of the State as the rev¬
stimulus to this general
type of general obligations. The debt serv¬ enues already pledged are ade¬
Halsey, Stuart & Co. Inc., yes¬ state toll service between
financing. During the year 1954 ice charges would be lower be¬ quate with a
substantial margin
point*
the volume of special revenue fi¬ cause of the lower interest
terday (Oct. 2) headed an under¬ within its
rate to meet
the
full
territory, partly in com
obligation of writing
on
syndicate which offered junction with
general credit bonds making
nancing
as
distinguished
from
other
companies
operating costs and debt service.
$100,000,000 of Southwestern Bell *
general obligation financing to¬ less probable recourse to the gen¬
principally the American Com¬
Let us give recognition at this
TelepH^-ne Co. 35-year 474% de¬ pany. It also
taled over
furnishes teletype¬
$3,200,000,000, equalling eral fund.
point to the fact that it is a de¬ bentures,
due
Oct.
46.1% of the total amount of tax1,
1992,
at writer exchange service and serv¬
sirable and healthy
thing in public 100.854% and accrued interest, to ' ices and facilities for
exempt financing for the year.
Change State Law
private line
finance to have
officials
faced yield 4.70%. The group won award
To
telephone, and teletypewriter use
facilitate
such
borrowing with.an urgency to keep
A Costly Form of
operating of the issue at competitive sale for the transmission of radio anc
would
be
Financing
relatively simple in and
financing costs witnin bounds Oct. 1 on a bid of 100.1099%.
television programs and lor othei
In spite of the
A
popular accept¬ many States.
change in the so that they can be met
Net proceeds from the financ¬ purposes.
fully by
ance of
.
•
law which prescribes
such bonds and the fact .State
the revenues.
The
inability to use ing will be applied by the com¬
At June 30,
debt limit would
that they afforded an
1957, capital stocfc
open the way in
easy way,
general credit may thwart po¬
pany toward the repayment of ad¬
in many cases, of
equity amounted to $1,114,407,826
avoiding restric¬ many cases These laws in most litical machinations and encour¬
vances from American
tive legislative
Telephone funded debt, was $175,000,000 anc
provisions, many instances, place a limit on the net ages sound business
.management and Telegraph Company, the pa¬ advances were
debt and define net debt as
casual observers, I
$127,400,000; com¬
believe, have
gross and economy in
operation. If ad¬ rent organization. Advances from pared
with
failed to realize how much
debt less
$614,676,046, capita:
more
sinking funds and in ministrative
policies are carefully A.T. & T. are obtained in con¬ stock
equity; funded debt of $175,costly this, form of financing has many cases less water debt if the watched
and
competently directed, formity with an established prac¬ 000,000 and no advances at Dec
"been for the
issuing public agen¬ same is self-sustaining. An amend¬ it does not mean that
these ob¬ tice of the company, of
ment to these debt limitation
borrowing 31, 1951.
cies.
As
these
agencies
laws jectives cannot be
charge
realized where from the American
For the six
an

escape

•

„

Halsey Stuart Group Offers $100,000,800
Southwestern Bell Telephone Debentures

public in the last analysis pays for

which would permit the
deduction
also in
computing the net debt
of all special
revenue

the

that

fees

tolls

rendered

cost

for

public

made

services

available, the

higher

borrowing

rate.

period where

most

financing

of the

was

special
done. Con¬

are

self-supporting

both

tractive

reasonable
the

and

borrower

at¬

even

though there was at- the time of
borrowing and is today a substan¬

sufficient to
specified

cover

reserve

operating costs,
funds and

debt

case

earnings do? not measure
requirements it? should be
permissible to deduct when com¬
to

puting the
revenue

does

and

general

obligations,

acceptable formula.

tial difference in the interest rate
revenue

Company,

pledged.

general

credit

test*

net

debt, such special

debt to the extent that? it
the

meet

self-supporting

There
that
will
of

are

might
refer to

quite

first is

a
a

the

need

arises,

for

general

cor-

various

including extensions* additions and improvements
to its

months ended Jurn

30, 1957, total operating

* amounted
*

income

different character. The
type of financing that

security

for the bonds, longleases to public agencies or

financing in

The

some

nei

telephone plant.

The

debentures

deemable

are

re¬

Joins

optional

redemption
prices ranging from 110% to par,
plus accrued interest.
Southwestern

Bell

cost

cases

has

this
been

Kidder, Peabody

BOSTON, Mass.—Robert Rickei
has

Telephone

become

connected

der, Peabody
engaged in the business of„
Street.
furnishing* communication serv¬

Co;

portion

vicinity of St. Louis; On
30, 1957, the company had
5.201,944 telephones
in
service.
The company also furnishes inter¬

Co.,

with

Kid¬

Federal

With Paine, Webber
(Special to The Financiai Chronicle)

of' Illinois

the

June

/Special to The Financial Chronicle)

thorities, many of them school
ices, mainly local and toll* tele¬
authorities, finance ► the* cost of
phone- service, in Arkansas, Kan¬
public buildings or schools
by the sas, Missouri,
Oklahoma; Texas,
sale of
authority bonds, and have and a small
term

revenues

$313,537,083 and
$50,335,135.
.

cases

mentioned, but I
only two which are

school: districts.

was

other

has been widely used in
Pennsyl¬
vania where- State or localau¬

porate purposes,

Cites Pennsylvania Instance

required between special
bonds

also

could be

sequently the cost, in- comparison
service not less than 1% times
with the rates
prevailing; today, by some other
appears

benefit

obligations

order. The term
"self-support¬
ing" could be defined by stipu¬
Fortunately
borrowing
rates
lating that the revenues of the
were
relatively low during; the
preceding year shall have been

revenue

the

BOSTON,
Trenholm

Mass.

has

—

Ronald

joined the staff

Paine, Webbe**, Jackson & Curti
24

Federal

Street."

,(1475)

The Commercial and Financial Chronicle

Number 5678

Volume 186

in this country comes

someone

Continued from

first page

up
we

We See

Smith. Much of the continent
of. Europe never did show
ernmental managers appear much liking for the ideas of
not to have made great head- this -leader
in the field of
way in "muddling through" liberal immigration policy in

receipt of very substantial
help from outside. The gov-

Britishers

done

are

doubtless to
good deal of

said to have past decades, and

successfully in the past, other causes? a

Examples could, of course, this alien trend of thought has
he multiplied easily
taken root in this country. It
The socialists, and the semi- is apparently difficult for us
socialists
usually : marchingto learn from sad experience,
under some other banner, who should Be Convinced hv Now
for- a decade or two have been
T,
.
,
. r
,

enough!

Public

if to

change the label

By OWEN ELY

The
of socialistic and
semi-socialistic

Growth Utilities Now Available at Lower P-E Ratios
The accompanying table lists a number of so-called "growth
utilities," most of which are now available at 16 or 17 times
earnings compared with ratios of 18-20 times in mid-July, before
the general market decline. Some general comment on. these issues

1
i
'*

nomic

«■

of their

affairs

tries appear

events-

As might have been foreseen

with confidence,
: seen
*

and was fore-

nuarters *

Invest ment

quarters, collective direction sanct in; the minds of
of the economic affairs of the
..
,
nennle. ' hac
people
nas, clearlv
clearly demon-- W.h° ?absorbed

••

inability to match

iV'*;ji

r»*

record made in this

ers,

•

. i

•

the teachings

demon of

strated its

and ^

number 0f forceful lead,
„
,
.
not the least ot whom in
^

many other countries by
Franklin
laissez fairesystem of
laissez favre system or bu£i-+u- +

Royosevelt. it

government. For our
part, we: are quite confident

erienced wiu

ness

will be able to

never

■

make it

Economic Aid

Discredited

By and large, the events of
past decade or two "now

the

•

nVimiiirr

coming

...

franchises, and sometimes questions
raised, but these are usually settled
difficulty. When rates are raised it may be necessary
to obtain approval from the municipalities,, but there is rarely
any real trouble and rate increases in any event are infrequent.

without

—

may

trv

fairlv

feeen

For the

asso¬

with

Underwriter
for United

"?an. really awakes to the con- Fund haying
elusions
evidently to be served as an

Hpfinite

fairly definit.
discred-

hoPe that such ls not

case>

sales
Regional Man-

ager

locations
For

are

active

;

to a large extent by long-term con¬
efficiency of new generating plants.

companies have not thus far enjoyed

the utility

of natural gas although

offices

years

member

for various

several

which

reasons.

group

are

listed

utility

number of

showing steady gains

are

in share earnings

Delaware Power & Light has been expanding

rapidly and has benefitted from the generating plant constructed
to serve the big Tidewater Refinery, in the operation of which
it is virtually
guaranteed an over-all return of 6%.
Tucson

he has been an
of the
National

of such
in such a.
to place their ecori-

miscellaneous

the

Iri

This whole idea of economic
salvation of the entire world Hear Prof. DeTuro
The
'j way las
by gigantic gifts, so labeled BrokersAssociation of Customers'
will have
guest speaker
omies on a greatly improved or mislabeled as "investfinancial and economic foot- ments," is really a sort of off- at their meeting to be held Oct. 8
ins
Some countries, notably shoot of the totalitarian eco- Professor Patrick A. DeTuro of
Germany
hive made great nomics of the day. Granted a NeCTwwill beW"?4?' p.m. on the
vjeimcuiy,
uave
mctuc
feycai
j7
ing Y/?r* held at 4 The meetpostwar progress, ancC' with- wealthy nation ruled by lib- third fioor of Schwartz Restaurant,
out' question
aicf extended erals and other nations eco- 54 Broad Street, New York City.
;Jfrom without was of great nomically backward but with
J. T. Martin Eiected
assistance. The fact is, though, a few leaders ready to manage
that the key to German sue- the business affairs of the naBy Mercantile Bank
was not receipts of aid, tion> and it is quite possible to
DALLAS, Texas—The Mercanbut the energy and initiative bring some sort of economic
of the rank and file of the millennium to pass in large tile ^Tinnal Bank of"bailas has
people in those countries, parts of the world if not to all elected Jake T. Martin Assistant
tries

Florida

advantages

companies

likewise

have

rank

$2.59 in 1956.

J.F.Stephens

a ,vn anY ever,t we
Security Traders Association and
bed'massive ernnomir assist-''wholly confident that at one
Wy.massi\ e econom c a
time or another this eountrv was President of the Kansas City
ance as a permanent cure for I1Iae °y anotner inis country, a£fRjate in 1950
poverty and -general social a^ least will turn back to its
Customers Brokers to
discontent. Very few coun- own fln* traditions.

;1 head

generally

the companies are protected

throughout the country.

many

utilities

states, nevertheless the exploitation of oil and gas have so stimu¬
utilities have enjoyed rapid gains in gross
and net. While the cost of natural gas for fuel is now increasing,

drawn from economic history Officer and

of-the past two or three decades. We can and do certainly

Texas

they are scheduled to
pipelines are completed. They have,
however, been well protected against the increasing cost of fuel
(principally oil) by comprehensive fuel adjustment clauses in
their rate structures. They have also benefitted* in recent years
by a favorable regulatory climate in marked contrast to the
difficulties Florida Power Corp. formerly encountered with the
old Pinellas County Board.
Recently, it is true, Florida Power
& Light was suddenly asked to reduce rates because of an alleged
excessive rate of return, but this has been amicably adjusted.
Despite a rate cut equivalent to about 380 a share per annum,
the company expects to earn $3.10 to $3.16 for the calendar year
1957 compared with $2.80 for the 12 months ended June and

hav/to Re^

.V£1Qn.T „,I,.irac.

that

reasons

receive gas when proposed

119 years
Mr. Stephens
has been

these

for

lated the economy that

the

p a s

ciated

In
•

for
United Funds,

—T„.,

be endured before the mind of

"tops" among the growth utilities. While the population growth
has not been as rapid as in California, Florida and some other

tracts and by the increased

Manager
Inc.

do
city authorities take an active role in
service. Of course it is necessary about every

to renew municipal
of local taxes, etc. are then

^that more travail than has'yet wVddeil&.M

and

that

, .

utilities. Regulation of electric utilities
municipalities which they serve, but only

20 years

the

poration,

instances

rare

regulating rates

Research Cor¬

kave; .become almost sacrom

with confidence in many
collective direction

City staff of Continental

Kansas

state regulation. The state law of Texas
maximum return but this has been exceeded

is in the hands of the

J. F.
Stephens has been added to the

from time to time by some

aPientY now exist for a turn"

Mo.

and

mentions 8%

nature to be considered in all
this. World politics has alwa^? keen difficult and perplexing. Large grants to na-

KANSAS. CITY,

for fuel

gas

tss"&ZSZ"Srv
sociafism and its coukns°have
'rhihWod
dubbed hberal and

enjoy the dual advantages of cheap natural

The Texas utilities

managed economies
solution.
c causes. 1 he tact is, J. F. Stephens With
th°<^that economic causes Continental Research
+u

to have been very

haHlv^disoredited

■

coun-

be of interest.

may

proclaiming the necessity for •
rise
tions with
and the efficiency of central- or may not have had certain
regimes mayprovide no
ized management of the eco- ■
Qh
{
Th
f
f .

Utility Securities

on a

gift could do more than lay
the basis for disappointment
and probably ill-will in the
future. A loan which has no
reasonable prospect Of repayment had better be called a
gift if it is to be made at all.
Of course, there are many
complex factors of a political

with the suggestion that
replace the gifts of the

past few years with loans—
as

G.E.L.&Pr„ benefitting by the number one position of Arizona

)

has been able to avoid issuing any new
thus permitting an unbroken string

states,

growth

among

stock for

common

some years,

of increases in share earnings.

American
scheduled

have made use

Gas

the

for

service

huge expansion program
including large generating
aluminum plants in Ohio and West
has

Electric

four

years,

facilities

Virginia.

foreign assistance

President Sporn's aggressive research and development

new

has kept the
engineering progress.
Atlantic

company

program

utility

forefront; of

the

City Electric has benefitted by the growth of industry

•

industrial

1+,

...

Virginia Electric & Power by an
General Telephone's sharp

southern New Jersey, and

renaissance

state.

its

earnings gains reflect substantial rate increases and an aggressive
merger program in addition to normal growth. Southern Company
has
enjoyed an influx of new industries in its area.
Transcontinental Gas Pipe Line is benefitting by a steady expansion

confined largely to its own area, geared to a

program

financing

successful
rapid

Canadian companies reflect the

The

program

their country, plus sound management

industrial growth of

cess

recently of a slowing down in

have been signs

While there

Martin is in
Prepar^d, t0. WOrk neril^ee
Ba* th(l eX~ ^He'wasShearson, Hammill & Co.
vieor that circum- perience of the past decade or
office of formerly1^ith the local

Where the

W?Fu the
"0t
with

the world

—

tho specious Vice-President. Mr.

makes it clear and prior thereto was a partner in
not ready to do what was ob- enough that gifts do not make Hermitage Securities Co., Nashviously necessary to get ahead wealth and that investments
TS
the
world, foreign aid, can do permanent good only Equitable Securities Corp.
though abundant, simply was if'there is a sound economic Joins
McCarley & Company
stances

people themselves

reouired, and were

two

now

the

higher money rates, it appears likely that

rising fuel costs and
the

companies have such

growth
able

though perhaps at
to

seem

opportunity

and

disap-

peared almost wh.hout trace.
All this naturally raises the
question as to how long it will
be before th^re is a general,
ue
ueiuitr
unc xo «
.

basis for them—which means
resources

and

capable

men

willing

exploiting

them.

CHARLOTTE,

C. —J.

Ray

formerly

officer

and

Efird,

director

Efird's

Department

Stores, has joined the Charlotte

rp,

time,has come, accord- offices of McCarley & Co., Inc.,

of
f^r a f"11 reconsidera- Commercial National Bank Build1or^rl Hip tion of these ideas of developmg, members of New York Stock
of the doctrines and the ;
7 —
satisfying

world-wide reconsideration
»v

V/J.

AVi

some

»T

--V

philosonhies unon

which these

lng a^ satisfying

the so-

c'mrn^ociaiistic caBed
cKw.a£ countries and
Charles D. Ross Opens
systems rest. Of course, it is peoples. Neuher India nor
HOUSTON Tex — Charles D
securities
true that for a
number of any other country in this Ross is conducting at 1408 Jefdecides laissez-faire has been wof^goujgr to be greatly business from offices
losing ground in the minds of assisted in the
ecoeven
the m<m who
reallv nomic self salvation by mere
Josenh M Wineman
brmmht it to full Tlower and £rants
m aid. Neither rebrought it to full flower and funds ",'nvested" in thbsewill«- ^Ph M. Wineman passed
reaped great benefits from it. pjonc,
„
11r,Wc; +Wp ic away SePh 26 at the ase of 51
Britain ha« Ion, not beon a Lie
Pconomic
Digitized forfaithful follower of Adam for them. From time tdj|me Weiss & Co., New York City.
FRASER
socialistic aed

task of

ferson Street.
Josepn ivi. wineman

iustif^tion^r^af iWSX

Hence this would

shrewd investors

for

capital gains than high yields.

interested in

GROWTH UTILITIES
Inc.

1956 Aoprox. Price-

-Share Earnings-

swallowed

momentum that they should
increasing share earnings,

somewhat slower pace.

buying

record

their

continue

utility earnings due to

rate of gain in the electric

average

Interim Over Recent Earns.
1952

1954

1955

$1.78

$1.99

$2.30

$2.52

1956

1957

$2.80

$2.66a

1952

Price

Ratio

UTILITIES:

TEXAS

Lighting

Houston

1953

57 %

Utilities

1.56

1.67

1.93

2.06

2.35

2.50

Central & South West

1.60
1.45
1.40

1.72

2.00

2.04

2.32

2.24a

1.87

1.88

2.16

2.21

2.25

1.48

1.46

1.54

1.64

1.76

1.42
1.81

1.54

1.75

2.05

2.59

2.80

1.89

2.22

2.30

2.86

2.91f

1.18

1.37

1.08

1.75

1.84

2.08

2.32

2.50

2.72

1.40

1.64

1.58

2.02

2.14

1.22

2.12

Texas

Gulf

Utilities

States

Southwestern
FLORIDA

Service

Pub.

UTILITIES:

Florida Power & Light
Florida

Power

Corp

Tampa Electric
OTHERS

1.66

1.76

S.:

Delaware Power <fe Light

Tuscon, G.

1.37

E. L. & P

1.55

1.61

1.68

1.95

2.03

Atlantic

City Electric

1.15

1.30

1.41

1.54

1.65

1.71

1.10

1.27

1.39

1.41

0.87
1.45

0.89

Electric &
Telephone

Virginia

1.77

1.84

2.62

3.05

3.25

110

1.29

1.35

1.54

1.55

1.18
0.67
0.62

1.24

0.92

1,18

1.13

1.36

1.21a

103

1.01

1.15

1.32

1.55

113

0.91

American Gas & Electric—

General

Power

Southern Company

Savannah

Elec.

Power

Transcontinental Gas P. L.

CANADIAN COMPANIES:
British

Columbia

Power

Shawinigan Water & Power
Calgary
a

Power

Decline

earnings,

due

heavy

1.47

1.62

2.05

2.34

39b

17c

1.34

4.25

17c

2.84
2.72

3 48

74b

2.26
2.35

120

1.91
2.03

2.95

3 73

61b

equity

f Based on average shares.

financing,
,

•

b Canadian

markets,

Based on

16c

1956

The Commercial and Financial Chronicle

(1476)

Thursday, October 3, 1957

...

•

Continued from page

from

corporations

and

govern¬

ments

at thO very time

investors

inflation,
how

individuals,

experienced,

are

though

have

spent 92%, or
of their income after taxes.

consumers

more,

will

As a result, savings have not been
large enough to finance the enor¬
mous
needs of mass capitalism,

the

will

the

they
do
hedge against

tunately,
ticularly
with

reassert
upswing

activity.

Our

contributes
sures

the

increase

population
to

inflationary

Impact of Inflation

pres¬

the old.
This
rapidly increasing proportion of
non-Working population to the
working population improves the
bargaining position of labor and
enables

labor

leaders

serious

banks

assets and liabilities
terms

of the

their

expressed

are

dollar.

same

this is far from right.

But

Banks have

problems of liquidity, growth, and
safety, which are vitally affected
by inflationary expansion. Even

drive

not

even

fast, or even faster,
than the increases in productivity.

the

market¬

often

are

the

greatest

ones

to be engaged in service than in
production. Unfortunately, in the
service field, it is very difficult to
increase
productivity, but they
have to eat, so they must get wage

increases also if the

highly

unionized production workers get
increases. It follows that, if the

even
may

levels.

This

steady
for

wages,

have

materials,

accelerated

movement in

the

etc.,

merger

industry and trade.
and

absorption
of
small businesses have hurt

many
the

the

of increased costs

raw

Liquidation

and

pressure

smaller

banks

and

rates

problem!

which

there

the

are

to^the

can

charged

and

inflationary
though the internal
be ^maintained.
As

and

corporate

the

capital goods themselves and

for

the

and,

financing of the goods,
of all, with their in¬
on
setting prices high

most

sistence

and

ever new

banks

levels,

tend to

loans

escalator

ever

greater

provisions, on
fringe benefits, on
ever higher
wages, and, now, on
shorter hours, are another basic
of

source

inflationary

pressures.

But the wage-price spiral has been
discussed so much tnat it will be
unnecessary to treat it further.
Sufficient to say that
everyone,

including the union leaders,

recog¬

its

nizes

dangers.
Weighing inese many factors, it
seems that
probably the greatest
inflationary pressure of all is the
changed social philosophy of our
times.

People

are

impatient—they

want what

limit

rely

the

forced

tial

the wall, with substan¬

losses,

loans

also

have

break

period

many

other

slow,

and

many

but

become

written

1920

The

down.

which

followed

galloping inflation
proof of the above statement.

the

account caused

Reserve

loss

bond

same

by those

high

requirements

are

Impact
In

flation. Under such
circumstances,
the Reserve authorities follow

policy
As
or

active

credit

restraint.

result, banks have

to borrow

sell

limited,

securities.

Borrowing

banks,
for
many
reasons, don't like to borrow. The
sale
of
securities offers only a
as

tight

market

money

price

want

capacity," if

into

our

inflation

available
is

avoided.

minimum

each $7 of risk assets.
ment
securities
are

capital

As govern¬

considered

look

generally

2.8%. Turn¬
as

whole,

for

encouraging

for net

even

the

assets

deteriorate As

other

than

their

banks
well

real

the
tend

known,

estate

and

banking offices, the capital of the
bank

manner

invested
as

the

same

the

deposits. In con¬
sequence, when the value of the

This

attrition

bank

has become rampant.

squeeze

the margin

prolonged

inflation—money rates

down, with
earnings of the
go

the

result

banks

that

also

de¬

crease.

cal consequences of inflation must
be taken into account.
In

partic¬

ular, it is important to note that
in

countries

where

inflation

has

been

rampant, such as in France,
the large commercial
banks, the
so-called credit banks, have been
nationalized by the government.
Impact

;Th

ants

and

the

benefit

life

ten¬

effort to do

so.

outlook

;

for

Prudent bankers should prepare

"the tire indus¬

try, in partic¬

though inflationary
to be -leveling

le ulaiy is good,

short,- they should take
long-run precautions on the

jsa id,,, with
jf studies indi¬

this

even

pressures

off.

theory

that

the

that

and

the

H. S. Firestone, Jr.

test

real

will

come

sharply increasing
family formation and a rapidly
growing population once more re¬
the

forces

inflation.

banker do?

The

prescription
seems
quite
me.
In fact, it seems so
obvious that it will be given in
clear to

condensed, semi-outline form.
Within the limits of his
and

cumstances

own

cir¬

Sales of tires will reach

conditions,

every

high next year,.when
000,000 are expected to be

oppose
more

inflation,
insidious,

every

pos¬

(2) Encourage, in all of its ram¬
ifications, greater saving, as it is
of

one

the

most

effective

anti-

(5) Insist

on better training for
officers, particularly a
fundamental knowledge of money

loan

management
After

all,

methods
younger

and

anticipated record 1957 sales
108,000,000 tires.

The

statements were made by
Firestone just"before he and
Firestone sailed for Europe

Mr.

aboard

the

factories

learn

about

what

can
.

(6) Mechanize operations

the

boom

could have

Paris

which

(9)

their

those

bonds

al¬

could

later

hit

Above
of

early

International

all, insist on a res¬
liquidity to the level

necessary to meet, alternatively,
the
threat of a continuation of

inflation, or the opposite, even
though such a deflation would be
only temporary.

October

Motor

and

Show

Florida

the

"Replacement tire sales this

year

are

expected to amount to 56,000,a new record, and we believe
replacement tire sales will climb

000,

to another

new high of
58.700,000
1953," Mr. Firestone said.

Active 4th 1957
"The general

steady

Quarter

economy is aided

population growth,
personalincome, higher
standards of living, and
industrial expansion," Mr. Fire¬
a;

record

than

ever

pointed out that there

signs

that

business will

"There has seldom been

opments,
ventions,

very

period

were more new

devel¬

products,

new

and

new

in¬

new

scientific

ad¬

vances," Mr. Firestone said.

greatly

to the
economy and they are proof
of the alertness of American busi¬

and

ness

industry."

Mr. Firestone said that advances
in the rubber
industry were espe¬

cially notable.
"Rubber " manufacturers •. spent
than $200,000,000
on
new
plants and equipment in 1956 and

there
will

Underwriting

non-risk assets, their sale in order follows
Summarizing, practically every
that, in a period of infla¬
to make loans
MIAMI, Fla. —Florida Under¬
causes the ratio of
look in America you see
tion, more and more of the assets
capital to risk assets to decline. of
&
Securities
Services
inflationary pressures. Moreover,
the. bank will be invested in writing
This sets limits to the loan
if you look abroad at the coun¬
expan¬ equities.
But, as was stated be¬ Corp. has been formed with of¬
sion, unless the bank raises new
tries on our side of the Iron Cur¬
fore, inflation is invariably fol¬ fices in the
Metropolitan Bank
capital. The board may decide lowed
tain.
or
if
by deflation. Will the trust
you
look at South
Building to engage in a securities
against this because the
price paid departments be nimble enough to
America,
you * see
inflationary for the
business.
Officers are George C.
new capital
under infla¬ liquidate the equities before sub¬
pressures of greater intensity tnan
Smith, President; Theodore Barr,
tionary conditions may be grossly stantial losses are
in the United States.
sustained? And Vice President
Thus, infla¬ unfair to
and Treasurer; and
the old stockholders, if such
tion IS a woiiu iJiienuiiiciio.ii cuid
losses are sustained, there
Celia Barr, Secretary.
Mr. Barr
/inu, if they do decide to seek will be

were

active during the final quarter of
1957.

indications

are

nse

new

this

record in

he said.

held in London Oct. 16-26.

when there

ready adversely affected inflation-

toration

operations

"These factors contribute

Eliminate

Mr.

firm's

France, England, Spain, Switzer¬

credit risk.

(8)

and. sales

his

land and Germany. He also
plans
to attend the Automobile Salon in

far

economically feasible.

(7) Scrutinize bond portfolio in
the light of the effects the
ending
of

inspect

know

happen!
as

Queen Elizabeth.

will

goals/ stone said.

men

only the postwar boom; they have
lot

mar¬

now

than at present.

all

111,—

keted, said the Chairman of The
Firestone Tire & Rubber Co. Thi9
would be 2.3%
higher than the

Firestone

(1) Continue to
particularly the

all-

time

Mrs.

banker should:

new
records

sales

possible.

Firestone

cating

coming leveling
temporary one,

off may be only a
later

Mr.

;

appear

remaindermen, yet each

bank makes

25.

1958

for further inflation. They should

credit-wise..

for

i ng,

Sept.

Counter Inflation-

The

them

said

wise

Trust Departments

of
en-

Harvey
S.
Firestone, Jr.,

Commercial Bank Policies to

Moreover, the social apd politi¬

c our a

dation.

inflationary and bank-strengthen¬
ing measures which can be taken.

of profits.

1957

inflation thus exerts another pres¬
towards merger and consoli¬

dollar
declines, the value and
purchasing power of the assets in creeping variety,
which the capital is invested also
sible way.

decrease.

final

the

quarter

sure

Well, what should

inflation,

for

As mechaniza¬

worse.

tion is quite costly, and often un¬
economic for the smaller banks,

Capital

period

capital
to

serious

limiting factor on loan
expansion during a period of in¬

economy

tal

new

rates charged corpora¬
This is particularly true
because,
Moreover, it takes a long in a
period of deflation—which
time, if ever, for the higher loan
invariably follows a period of
rates to offset
rates.

much

final quarter of 1957 and that the

This is clearly

up even more.

ures

anticipated

tions.

their

be fitted

causes

already high

and non-bank lenders

shown in the Federal Reserve

trust departments of com¬
super-highways, they the point where losses
on
such
want new schools,
mercial banks also can be
hospitals, and sales are prohibitive.
put in
so on ad infinitum:
jeopardy by galloping inflation.
yet, tney are
Capital
While
it
requirements
is
unwilling to
do
the
are
necessary
perfectly true that
saving to get them on a non-infla¬ another serious limiting factor on there is no legal obligation on the
tionary basis. In other words, they loan expansion. Most bankers fol¬ banks to maintain the purchasing
refuse to recognize that our wants low a rule-of-thumb limitation of power of the funds entrusted
to
must

inflation

Turning to the profit and loss
side, during a period of inflation,
(3) Re-study all loans, particu¬
the cost of
doing business by the
and they cannot increase to the
larly those which will be vulner¬
banks,
particularly- wages,
in¬ able when the
same
extent
as
costs.
inflation levels off
As
you creases
rapidly. Moreover, as in
or changes, even
know, usury laws as well as com¬ other
though only tem¬
industries, when the infla¬
petition limit the rates charged
porarily, to deflation.
tion period is over,
wages are not
individuals; and competition with
(4) Set up even larger reserves
reduced.
The
net
result
is
a
are

"they want, when they
want it. They want a brand new
"Hobson's choice,"
house, they want two automobiles, depresses
they

mount

and

ments.

enough to cover their costs of
capital expansion.
Labor leaders, with their insist¬ other banks
ence

Summarizing,

bank earnings to go up, but costs

been

by liquidity require¬

Interest rates

1958

ing to the

economy is sound despite certain
fig¬
profits on total capi¬
readjustments.
V
accounts, which were at the
income
as
the
basis
of
their
The nation's general
rate of 9.3% in 1954, 7.9% in 1955,
economy is
liquidity. The "musical chairs"
and 7.7% in 1956. Moreover, had strong and healthy, despite read¬
aspect of this type of liquidity
it not been for increasing mech¬ justments in some areas, and the
needs no explanation to invest¬
outlook for most basic industries
anization, the results would have'
ment men.
to

tion

assets,

108,000,000 tires is expected by
Mr. Firestone to be exceeded in

same

the tire executive finds the out¬

loans

consumer

Corporations, too, are guilty of
capital has been a basic problem
contributing
to
inflation
with imposed by reserve requirements, in
every country in which infla¬
"solt" wage settlements, with cap¬ by the ratio of capital
to risk
ital expansion even though uneco¬
nomic prices have to be paid for

Anticipated 1957 record sales of

expressed

are

forced

limits to loan expansion

General Business

loans,

even

dollars, yet, as
this analysis indicates, even the
banks are seriously affected
by

production workers get all of the many of them to merge in selfbenefits of their increased prod¬ defense.
The oft-repeated claim that the
uctivity in the form of higher
wages,
any
wage
increases re¬ larger volume of loans at higher
ceived by more than one-half of interest rates will more than off¬
our ivorking
force ivill be infla¬ set any problems that inflation
tionary. In this connection, keep may bring, overlooks some of the
in mind that the increased num¬ basic facts of banking life. As all
ber of government civilian em¬ bankers well know, not only does
ployees and the more than 3,000,- the quality of loans deteriorate in
OQO men in military service all a boom, there are limits
add

terms of the

Liquidity of the banking system

down

liabilities

and

for

need

Even more important, as Chair¬
important, banks are not man Martin of the
Federal Reserve
only part of the economy, they Board
has indicated, it. is wellThis is far more serious than is
serve
the^ entire
economy,
and
nigh impossible to control creep¬
generally recognized, and for a
anything which is not good for
ing inflation. Sooner or later, it
reason which does not seem to be
the economy is not good for the
starts
to
"g a 1 1 o p" and this
recgonized at all. I refer to the
banks.
economic
invariably, as experience through¬
consequences
of
the
Inflation has already reduced out the world has
indicated, leads
growing proportion of our labor
a
sharp
collapse
A
Corce which is engaged in service corporate liquidity to prewar lev¬ to
sharp
els.
The doubling of inventories decline in business
as opposed to production.
activity fol¬
Today,
in the past ten years, the heavy lowing
a
period
of
inflation
in America for the first time in
taxes and the huge spending for inevitably has an adverse effect
the
history qf the world, our
new
plant and equipment have on the quality of loans. Not only
standard
of
living has reached
reduced
many
marginal
businesses
corporate liquidity to low are
levels which require more people
wages

Firestone Optimistic
On Tire Sales and

in¬

funds

departments as they
consider trust investment

Thus, although on the surface
banks have nothing to lose by in¬
flation because both their assets

capital.

new

ratios

bankers, feel that inflation

some

and

economists,

Many

and

young,

Our

less

their

entrust

officers too conservative.

most par¬
smaller
banks

limited

may

Unfor¬

applies

mortgage

the increase has been in

inflation.

the

have

period,

Commercial Banks

also

that

the ground
constitute a

not

this

goes

and

matter

are

much to trust

that

future,

near

undoubtedly

themselves
in business

certainly not under today's
inflationary conditions.

bank's?shares,

inflationary pressures ability, which

our

subside

they

clined

the

Inflation and Its Significance
To Commercial Banking

likely fo discriminate against

figure

1957,"

James F. Fi*z-Gerald

way you

this,

too,

flationary

increases

our-own

pressures.

And,

inr

al¬

rescission

capital, they find themselves
competing with swollen demands

suits

with

un¬

favorably publicity if not actual
losses.
Moreover, in periods of

was

formerly

with

Waddell

James F. Fitz-Gerald,
of

the

Trading Department
of
Canady & Co., Inc., New
York City, passed away on Sept. 26.

Frank J. Miller
Frank

Miller

Sept. 24 at the
been

age

associated

Reed, Inc. and Alfred D. Laurance

Webster

past 15 years.

Co.

Manager

passed
of 54.

with

Securities Corp.

away

He had

Stone

for

the

Volume 186

there is the benefit

And
lection.

How * about

Salesma

professional
this.

want

you

the
xne

tomerthat

buv
ouy

for

you

while

and

you

be too

tell

you

see

you

—

it
it

rrver.

Buyers View Interest Rate at

The Government market is as-

to offer

possibilities.

namic

When

■'

Peak

similating. the issues which were

Level

m\cer.tain acti<?a of the

andre-

how it works

sorbed.

and

why it is
needed. Alert management would
not make the mistakes that a busy

bond

The

to indicate that these

demand

Oct.

due

the

for

and uninformed individual would

commit — they would see overproduction coming, they would be

with a
putting

sme

some

0f"thl recent 'offeringsof
rate
bonds1have not SmV C

be outdone, the "2V2 x 5s" are
likewise finding permanent homes,

alert to some of the technological
change that today is ruining the

w securities

1969, seems to
be
growing which
means
that
investment funds are being attracted to this obligation. Not to
1,

coroo-

well

there

and

mavh™in

syndicate dissolution*
them

sold

Nonetheless

varied

group

are

money

this

of savers
work in the

the

definitely

buvers

bond*
-and

opinions'

that

means

yields

the increase

h«

«rder to

hiehm-

are

bright prospects of some of optional call security.
growing that interest rates either
the newer metal producers. They
There is no change in the poli- are at or very near peak levels,
wouldn't stay with decadent^ sit- cies of the Federal Reserve Board,
' The determination of the mone-

once

dustries with widely touted dy- uations—not if they could avoid it. although there

Not only is it necessary

Governments

f01™11011 stock market is not havporxs appeal are maicate mat tnese ing market for fixed income hearto being well ab- +be exactly an adverse effect on
obligations

And the benefit of supervision,
Tell

offered in the recent new money

nnito
quite

The
same
goes
for...Mutual
Funds.
Explain the benefits of
diversification.
Show how even
the best intentioned advice on individual stocks has often gone
hay-wire. Bring it up to date by
citing what has happend, for example, to so many of the so-called
"growth stocks" during the past
few months. Or to others in in-

pros-

will

customers

them you
need an order.
If you want your
advertising to be ignored then
don't offer any specific benefits—
busy

bonds
Donas

Reporter

By JOHN T. CHIPPENDALE, JR.

explain the benefits—the differ- oneratto^
ence between guesswork and re- ports aDnear

thing to tell
they should

FITS.

want

your

that

certain

maxe

pects

tax-frcp
tax nee

that

?em'+ 01mPay

T.1

disappointed another to EXPLAIN THE BENE-

are

you

one

Our

I" xfitif

♦h®™

benefit.
It is
the uninitiated

he hasn't done business with

that

certain

make

of your sales letters hits
wa^tebasket
tell
vour
enswasteDasKet
ieii
youi
cus
one

man¬

management does
don't know, write to

If you

■,

Sell Benefits
.If

se¬

the

agement, the financial standing,
iie research, the strong competi¬
tive position. Tell a story of how

By JOHN DUTTON

that

picking

better issues—those with the

Securities

(1477)

The Commercial and. Financial Chronicle

Number 5678

you

yOU

want

make

tary authorities to check the eurrent wage-price inflation spiral

are more opinions
sales— around that the unsettled economic

economic
be?

soon

curities for new plant and equip- having an influence on the flota-

interest,- how money ample of specifics!
the years if it can
be put back to work consistently.
Dig up an example and show
what happens to - an,, investment
when
3%
is" compounded,
and
Seventy-eight percent
how much sooner you can double
business will match
compound

ing, and your

;

sales interviews,

Renewed

capital if
at

make it grow

can

you

for the

for

Or take the case of tax-exempt

bonds.

rest

earlier

than

better

year

keener

that dependable

optimism

inventory

deliveries

and

price

36% show better, against 24% in
July; 44 % the same» compared
60%..or whatever it is to their with 48% and 20% worse, against
return on other avenues of invest- 28% in July.,.
ment and show them what they
The comments comprise the
have left in dollars Drive it home composite opinion of purchasing
is to apply
rate—30%—40%—

in tax-free bonds

ing

their

top

tax

evening

radio program over a

was

his-

confiscatory taxes on the income
is

which is so
listening public

program

This
arranged

people actually receive.

that the

can

tele-

phone their questions to the staa
fh0
r>nn
and the radio audience can
hear both the question and the

tion

One man phoned

answer.

F. Og-

into bonds, with selected issues coming into the market for sale,

of Governments, corporates and Tax free bonds evidently will con-

in .and

time. The recently offered 12-year
.
. •
'
4% bond continues to be finding Hunter
"
■
■ ■■
Syndicate Mgr.
favor among institutional as well
as individual buyers, with reports
For McKelvy & Go.
the factors emphasized. However, indicating that this issue is going
PITTSBURGH, Pa.—McKelvy &
many Committee members report jnto strong hands. The way in
_
a continuing need for highly which this bond is being put away Com^a^^on'Trust"Building
skilled workeis.
means that the securities which mem5ers of the New York amI
Buvine Policy
!?ave been coming into the market Pittsburgh Stock Exchanges, anmiyingr roncy
from the "fast movers,' and those 110Lmced that David W Hunter
on

near-term

Treasury,

being

are

very

The

attrib-

ment in employment, some

i,-.
uj. h*56% in c™4™,aenuy geiinig a oil juuic by 4s."
September.
vestors favor than the "2V2
change in l\JRO supplies 'T,bpcpk two issues according to re—

buying was less significant, with

being

are

bouXt

that have mabe to my ad-

asked

him

mer

as sumemployed students return to

what was

tee who answered the September

top
tax-rate
and he said
"about 38%." I then pointed out

question on their capital expansion plans for the remainder of
1957, the majority replied that no

bonds?"

him

that he was
return

current
less

and

38%,

him

out

TViah

fbio

-r\tirot*a

that

rvnint.Pfl

paid him 4% and

Hlpnfp

that
eve'n if he took

pilth^pk

And

8%J

ATfi

in-

Most

berj

Commodity Prices

change

comes

LL.

Siegel Co. Staff
Miss

with

^ay'.

was

Mlss.Tr®nt Trent
in A.
•
*
ner

become

siegel &

New

ur0adway,

has

Trent

Anne

associated

Co., 39

York 6, N. Y.
formerly a part¬
&

Co.
e

iv/t

SAN FRANCISCO, Calif.—William H. Agnew, Chairman of the
Board of Pacific Coast Stock Exchange, announced the election of

Duke O. Hannaford to member-

optional notes. It is indicated that
money Which came out of common
stocks and was put to work in the

rln fiiQ other KqW/I
On the
hand, 4llACA lY\
those in

60-

creased

noticeable

the forward commitments for
capital items and plant expansi0n. Where 59% said they were
the 120 days and over category

the

creasing.

bought a

tax-exempt X bond

20-year

T-.„I

ship in the San Francisco Division
of the Pacific Coast Stock Exchange, effective Sept. 30, 1957.
receiving his
mQst liquid Government issues is
Mr. Hannaford is President of
those bonds, change was contemplated.
72%
now being reinvested
in both of Hannaford & Talbot, a corporasaid he was say continue as planned, 20% in- in July, 49%.so report in Septem- the optional note issues.
lion, upon which he will confeir

his

M-

IvIISS I ffillt JOINS

New Coast Exch. Member

invested utable to seasonal aspects

$15,000

bonds

taxable

caxe aeparimeni.

save^

Manager of the svndi-

well

72% in the hand-to-mouth to 30- with'much of this money coming
day
category
in
September, f
saving banks and saving and
tured.
Would it
school,
and some
to overtime against July's 73%. 26% were in loan associations. Also funds which
vantage
to
buy
an
equivalent elimination.
the 60- and 90-day ranges in July, ,
been in Treasury bills are
amount
of
good
4%
tax-free
Of the members of the Commit- compared with 25% 111 September. now being invested in the two,

have

asked,

ttetn^ S

Pu^hasmg Execuhves contmue that have been selling them in

commitments

adjust—

downward

ample supply,

tax exempts being bought at this tinue to be in

t,,i,r
in July to

change

investment
in
interest salutory influence on the money
obligations. The interest market. This could bring about
of many investors now appears to lower yields for the issues of corbe
veering away from equities porate securities which would be

nonexistent,

seeking
bearing

den> Manager of Purchases, The basis. Production materials, MRO digested
and premium
prices
Edison Company, Detroit, supplies and capital expenditures, should be witnessed again in the.'
Michigan.
The committee mem- all again illustrate little need for very near future.
bers indicate greater selling pres- extended purchases,
Optional Note Issues Equally
Sures, with keen competition proOn production materials, those
hibiting the passing on of higher reporting in the hand-to-mouth
Favo**ed
cos^s on many items.
to 30-day category increased from
The optional redemption Treas<
Currently, commodity prices are July's 33%, to 38% in September. ury notes are also being, well
relatively static and incentives to Those'in the 60- and 90-day buyU^V?.
Sou bv 5s" eviincrease inventories are largely ing ranges eased off, from 63% Hpntlv gpttini? a bit more of inThere

■

though there be

market continues to in "the policies of the monetary
operate under the same restricted authorities a lessening of the deconditions, even though there is mand for money for new plant
an increasing amount
of money and
equipment
will
have, a

Detroit

cussing the impact of present day
that

Even

Committee, to keep their toiward purchase order to meet payments to the .in!,nin4PA

whose Chairman is Chester

prominent

station in my city and I was

Survey

Business

underunaci

can
can

•

other

The

thev
tney

that
that

benefits
benelits

agents who comprise the N.A.PA.

will begiri to show some

and you

f0r funds.

The money

business
will leveling as lessening the need for
quarter
earlier prediction is re- superabundant stocks,
interest. Of course this is not so. fleeted in the September report of
■
'
They only are able to keep what the National Association of PurEmployment
they have left after they apply chasing
Executives. While this
There is a slight downward adtheir
income
tax
rates
against pattern is selective, there are 32% justment reported in September,
these gross returns.
They can't listing better production, com- with 28% indicating less employspend, or save what? the Federal pared with 22% in July; 46% re- ment, opposed to 20% in this cateGovernment takes from them.
port the same, against 54% in gory in July. Seasonal layoffs of
The only way, you
can show July, and 22% worse, against 24%
summer help, reduction of overpeople the benefits from invest- two months ago. On new orders, time and inventory corrections are

fourth
match

4s to

Attain Premium

reductions.
renewed

Twelve-Year

Expect

are

money

•

predictions.

competition and

purchase of fixed income

change in capital expansion plans

Note

1957.

Fourth-Quarter Business

of Purchasing Agents report end of

actually believe

Too many

receiving a net return
on their government bonds, their
savings accounts, their dividends,
their mortgage and taxable bond
they

Optimism

Majority contemplate

rate.

available .tion of securities for new capacity
purposes because there is some
bearing obligations, there appears doubt now appearing that the
to be an increasingly constructive added
capacity will be needed,
attitude towards the money mar- Just the stretching out of spendket.
:
ing for new plant and equipment
will have an effect on the demand

ment. With

will grow over

90-day

and

ranges

the

Activity

in¬

July's 27%, to 38%

from

September.

in the

3s of

1995

switching is also reported

Some

in the longer-end

a-F his membership.
privileges of Vlic* inomV\opeb 1
officers of the corporation $

Other

of the Govern-

are:

Leonard A. Talbot, First Vice- '

President; John F.

innegan, Vice-

President; Donald L. Colvin, \ iceWhile most of the Committee
ment
list, which is being at- presMent; James J. Morris, Vice—
Specific Commodity Changes
members report a greater price
tributed mainly to tax operations. President, Director and Assistant
While the number of items reaad stuck it
stability, the trends are not speposit box (without any compound
Higher prices are .reported p0r^e(j Up this month is relative- Also, certain state pension funds Secretary - Treasurer; Robe r t
interest at all)" that when the 20
all),
yy, 51
Ihown ly high' there seems upward price continue to make purchases of the Crawford Vice-President and Dito ^ a £el>Maude Trumbo, Viceeral feeling ,uaw
f
1qq(h
thi
bond
is rector; and Maui
years passed by he would have a
clol lttuu6 that the
3s
of
1995
wnen
tnis
oona
is
$600

the

come

of net, clear, init in an envelope
in his savings de-

year

and

put

total
be
.

$27,000.00.

$15,000

his

$12,000 of uncompounded
which would insure him

better

could

free
rest

becausev

interest
of this

wibm:u,

another $500 taxbond every year, and put the
in a taxable savings account,

result

would

even

illustrate

people

what

ice

, th

Inventories

The September reports reflect a
continuation of the inventory reductions of recent months

34%

inventories are lower, 51% the

same

ancj

crease.

only 15%

Those

trend .g leveling.
u

p1.esl(jent and Secretary-Treasurer.

available

inSots and castings, steel pipe, fit-

list an-in-

reporting point to

ers,

sizable

fairly

side are; ^]uminum

Field & Teeters Adds

amounts. It is reported that the

tings, shapes and fabricated com- supply

line for the remainder of the year.

say

sound way to

m tend ^ hold thfi

itemg

favorable.

; This example is a

toat

„

^ the^e'neral8 cSitention
P^t the g<l e ®
*

buy

compounding as rapidly as possi¬
ble in more tax-free bonds and
the

by 42%, against 37% two months
principal plus agor while 7% list prices as lowThere would

of the longest Government

phosphates, grinding wheels,

(Special to The Financial

multiwall paper bags, caustic pot- ^ol a iew °wneis w uk ot> ul
^ steel^chain> hardware, and 1995 are not inclined to take losses
freight rates.
in this bond at this time. On the

proceeds

stainless steel.

are

being

reinvested,

Investment '
Guif

BoXad;..

Company,

Walter C. LouchHeim
Louchheim, a member

down side are: Brass, other hand, this issue is still being

^oTe'um^roducts' Iumber' and sold in some cases, and the
petroleum products.
In short supply are: Nickel,
heavy-steel plates, structural and

Chronicle)

the

Philadelphia
•

„

iqu

Stock

i-»oCaori

larSely m corporate bonds, when change since 1914, pass
there is protection in the call price. Sept. o.

Ex-

nwav

£0

(1478)

The Commercial and Financial Chronicle

Continued

street,

from page 5

benefit

the

and

excul¬

pation of the political officials.
In Britain,
contrastingly, such

independence of the Central Bank

Observations

•

the

from

elected

Government

rate by itself will further

this by gan for. higher wages all around afforded to the latter to make a
making it easier for them to fi¬ without regard to the increase in scapegoat of the former in the
nance
domestic
expansion
and productive efficiency or the com¬ eyes of the voter.
foreign direct investment by Ger¬ petitive position of British in¬
Surely the accompaniment of
man firms.
dustry."
the statesmanship on the part of
In
England
conversely,
the
An Adenauer Myth
higher rate will lower British
Many, including Per Jacobssen,
foreign ^vestment and thus be
effective in building up the ex¬ who challenge us cynics who are
skeptical about the statesmanship
change position.
of the

voters, point to the alleged
The British position, in line with
implications of Chancellor Ade¬
(3) above, will be importantly
nauer's re-election. However, the
helped by the Germans exporting
less and consuming more at home impression that the German peo¬
—with the British consuming less ple voted on the issue of economic
soundness
or
self-discipline
is
at home and exporting more, to
wholly mythical. Actually, Ger¬
Germany and also third markets.
many's austerity and sound mon¬
etary policies were instituted at the
Implication of Germany's Rate
the

viewpoint

of
the
ing from lack of money and
authorities,
liquidity.
Shortly
before
last
them here in
month's
electibn, the Adenauer
during the Interna¬

German Central Bank
as

expressed

Washington
tional

Monetary

entire

community—both out¬
inside

and

area—which

Government

Fund

extended

labor

union

indispen¬

sable for the successful defense of
the pound, is problematical!

Columbus & Southern
Ohio Electric Co. 6%

Ohio

Columbus

shares, 6% series,

Southern

Ohio

($100

par

(1)
for

The

ways:

reduced

traders

profitability
1955, with a
speculators to raising of the rediscount
rate from

and

switch trom pounds to marks will
ease the burden on London.

International traders spec¬
ulating on revaluation of the mark
finding the operation more ex¬
pensive will also relieve the Brit¬
(2)

ish

situation, if only

the long

over

run.

3% to 5%. But this step was taken
midst a domestic investment boom
distinct

and

over-employment.
And more important to our dis¬
cussion, the German Central Bank,
completely
independent
of
the

Government,

vigorously

was

op¬

posed in its 1955-56 restrictions by

(3)

The

rates

effect

struction program.
tion

incentives

will

the

used

for

rates

for

imately

The construc¬

the

$53,300,000

installation

kilowatt

units

and

includes

two

125,000

new

generating station

electric

Conesville,
Ohio. The initial unit is expected
to be placed in service in Decem¬
ber, 11)57 and the other late in
near

foreign

trade
stimulate

part

own

exports, thus relieving
financing international

Scheffer,

Central
and

Bank,

realized

Ohio

well as-with the

played

are

the

by, the man-in-the-

electric
portions

central

having

lation of 970,000.

for,

company's
comprises

counties

current

from

its

her capital
London in

and

cent rediscount

rate nearly
so
much as in the
projected curtailment of the avail¬
ability of credit and in the effec¬

tiveness of accompanying policies

implementing the

seven

cent

per

step.
This

surrounding program raises
the most important issue of all.
For it entails, to maintain a com¬
petitive

export

inflation"

position,

home

"non-

'including

restrictive wage policy even with
the risk of some

including

unemployment
possibility of the

the

strike weapon.
smack

And this brings us
against the basic exi¬

gencies of self-interest
common

good

community

versus

registered

universal

the

suffrage

where the next counting of

—even

the votes may not occur until two
years

transit

system in Columbus and suburbs.

The State of Trade and
last several

weeks

has been

Industry

disappointment to the mills. The
customer is still in the
saddle and it looks as though he will stay
there for some time, declares this trade
weekly.
a

The fact that this year will be the second-best

tory from

steel

his¬

production standpoint is little comfort to the mills.
They had expected a stronger pickup than is evident so far and
the chief reason behind the slow
improvement is Detroit. The
automakers are waiting to see how their new
a

models sell

before

they commit themselves to heavy tonnages.
The
made

mills

are

selling hard.

the basis

inventories close

than

not

sale

Buyers are running their
point, but as long as they know
delivery, they are taking advantage of

the mills

can

the

and using
thpir cash for other purposes. Quality
important than it has been for some months. Steel
picking more on quality and do not hesitate to reject

give quick

situation

also is
users

are

tonnages that would have been welcome when the market
tighter.

was

The only place where the
buyer is not calling the turn is in
wide-flange beams, heavy plate and line pipe. But indications
are that in 1958 he will
have more to say about these
items, too,
concludes "The Iron Age."

beginning of this article, the Brit¬

The price index calculated
by the Bureau of Labor Statistics
advanced 0.2% between July and
August to 121.0% of the 1947-49
average.
The level was 3.6% above a
year earlier, the bureau
reported.
'
•

ish people will accept more in the
way of corrective medicine than
the inhabitants of other democ¬

doubt
the

Bernstein,

mist

some

countries,
has

never

runaway inflation.

hand, there is
even

small

employment
the

the

He-

Department

although an opti¬
program's net result,

"Unlike

Kingdom

that

As E. M.

Statistics

the

European
a

program.

Fund,

notes:

some

swallowing of

Director

and

the

remains

their

necessary

still

about

are

economy.

everybody' is

last week due to model changeover and Ford and
Mercury ended
their 1957 model assembly, marking an end to the
industry's old '
run.
United States producers lasl week built 51,225 cars, '
only 2.2% below the 52,365 of the preceding week as the Chrysler •

Corp. rise offset the decline-by Ford Motor Co.
Truck production, down a severe 34%; fell to 8,821 last week
13,441 the week before as Ford and Chevrolet entered
model changeover and Willys land White Motor Co. halted

from

continental

the

United

experienced
On the other

irrational

pockets
a

'Fair

fear

menace

un¬

for

longer a principle
for
maintaining austerity in a
hard-pressed economy, but a slo¬
no

new

Food

prices

0.4%

rose

during August to a record 117.9%
average, it noted.
Commissioner Ewan Clague estimated that
157,000 workers,
mostly in the aircraft industry and a few in the
of the

1947-49

glass and metal

working fields, will get hourly
an
hour, effective Oct. 1.
One

other

factor

Clague noted,

was

attributed

was

fpx

one-week inventory adjustment.

said the industry's dealers'during the period Sept.
strong 18,1005 new cars daily compared with only,'
15,900 a day in September last year. Current sales also are run- «
ning 10% above August with General .Motors Corp. in particular
firming up its share of the fair market.

sold

„

August exports totaled -$1,534,000,000 of non-military aid <
shipments. That topped the $1,504,000,000 of July and the $1,377,- '

'000,000 of

at;

£ear earlier, the'United States Department of Com- *

reveals.

merce

After

;

sparing to

record-breaking $2,013,000,000 in

March, '
commercialjd^ports slipped steadily in the following four months :
before apparently halting'the drop in August.
Trade officials
r

blame

the

decline

the

fact'March

was

abnormally high andthat foreign ipountries have" recently
attempted to slow down ;
imports as a step toward combatting inflation. Sales have been,'
consistently running above year-ago figures for more than two ;
years, it noted.':
•
1
'
.■
}
.

....

;

July building permit values increased
vious

month

but

below

were

the

slightly

comparable

over

1956

the

pre-

level for the

third successive month, Dun .&

Bradstreet, Inc., notes. The aggre-,
gate for 217 cities including; New York last month rose 2.2% to
$555,858,809, from $543,843,626 in June, but fell 6.3% from $593,229,352 in July
For New

year

ago.

York

City alone permits for July totaled $33,359,-,
346, a decrease of 65.1% from $95,455,909 in July last year and a
loss of 39.6% from the $55,200,493 a month earlier.;.^The
precip- 't
itate drop recorded in the metropolis was
largely responsible
for the decline in the country as a whole.
;
..

Steel Mills Set This Webk to Produce 82.4%

of Ingot %

Capacity—Up 0.2% From Last Week's Actual Rate
The steel industry set a -rgcord for the first nine months of

by producing 87,600,00(1 net tons of steel for ingots and cast-*
ings, but output will have,to-increase in the-fourth quarter iMhe:
year is to be a record one, "Steel" magazine stated on Monday,
year

Helping to bolster the nine-month figure was high produc-;
in the early part of the year and sustained output at mid-?
summer, the national metalworking weekly declared.
The.pre-;
vious

0.2%

living

upon

the

Production

the

price

increase, Mr.

ga£

went
a

up,

result of

factory
a

workers'

after-tax

seasonal increase

in the

added.

industry September

10-day reports,

1955

will

year

output

car

sales, based
all previous expec¬

were

equal

averages

(

there still is

lot of

Automakers want to

room

on-the. November and December books.

how

see

ing much steel.
autos

the

1958

models

sell before

order¬

...

through,, output, of steel in 1958 could well
near 125,000,000 tons, the metalworking'
weekly pointed out. If they,do not, the industry will likely turn
out in excess of 117,000,000 tons, the average operating rate
of;
only 83%J;of the expected capacity, 141,000,000 net tons.
Next/year could well be 9 carbon copy of 1957 as far as busi¬
set

come

somewhere

record

projects

ness

are concerned, the. publication declared.
Manyat work in i.957 will carry over into 1958. No over¬

factors

of the

all downtrend

It looks like

.1, '

1960.

1958 is anticipated, neither is a decided upturn.high plateau year, prior to the boom expected in \
'
■'
•

Pricesfwill continue to'rise
3%,

the

next year to the tune of about
notes.' Increased costs will boost Gross
3%, and there will be some increases

tfade weekly

National Product

service

least

industries.

durable and nondurable goods,;
balance, leaving a final Gross
National Product just under. $450,000,000,000. Industrial production will hold to about the same level that
prevailed this year, although there will be a shake-up in the mix.?
The Federal Reserve Board's monthly production index
(sea-;
sonally adjusted) will average about 145 (1947-1949 = 100) for
plusses

the

and

minuses

will

about

year,pyith relative stability from beginning to end.

Whita the most commonly heard production figure for pas¬
aiftos in 1958 is 6,500;000 it could be conservative. With a
possible shortage of cars ih June or July a strike may occur and
the constant threat of higher prices, 1958 could be the year that:
car buying surprises the experts.
•=
-•
•■■y
Last {week, the slowed pace in steel buying and production,
cut scrap prices to the-lowest level
since mid-May.
"Steel's",
price composite on steelmaking grades slid to $46.33 a gross ton,.
$1.84 below t|ie previous week;senger

iKmerican

Iron

and

Steel

Institute

announced

that

the

operating rate of steel companies* having 96.1% of the steelmaking
capacity for the
capacity

new

exceeding
tations and were
running above September last year by nearly
20%, "Ward's Automotive Reports" disclosed on.
Friday of the

past week.

this

the record 117,000,000 tons
88% .of capacity in the final *
quarter. The industry will have to make 29,400,000 tons of steel,
or an average of
9,800,000 tons in each of the final three months.
Output has not been that high since April, it added.
Bookings for October"delivery have been pretty good, but."
made

The

automotive

second

in housing costs.
The gain
rates, residential rates and
mortgages backed by the Federal Hous¬

costs

pay went up even more
work week, the bureau

of two to three cents

increase
in

high for this period.was 85,800,000 tons in 1955. Last year,
outturn" was 82,800,000 tons. >

the

importance

increases

higher interest rates
ing Administration.

Although

wage boosts

oper¬

Higher food costs in August lifted consumer prices to
high for the twelfth consecutive month.

there

than 300,000 ^units.

model

often

of prompt
delivery.
to the danger

Although, -per Mr. Bernard
Shaw's observation quoted at the

racies,

above

of this week.

hence.

Chrysler Corp., which is
today, is programming its
the same period last
>
\

cars

16%

output

car

tion

As
is
freely granted by Mr.
Thorneycroft and Britain's other
leaders, her future is not bound
seven per

that

of the industry's 1958
assembly, tripling its volume of two weeks ago, "Ward's"
stated. At the same time, General Motors Corp.
produced no cars

A subsidiary of

Program

in the

service' said

model

popu¬

Continued from page 4

Overshadowing the Fiscal

Chrysler Corp. last week bit off 55%

southern

estimated

operates

company

service

trade.

July 1, 1957 to Dec. 31, 1959 con¬
templates expenditures of approx¬

area

exporting. Finance Ministers, Messrs. Erhard
Germany's reduction of in¬ and

(4)

for thb period from

program

The

investment, increasing its difference of outlook between the
reviving her boom political head of the state, Mr.
home, and thus reducing the Adenauer, and the Economic and

profitability,

terest

sale

the company to reduce bank loans
which were incurred for its con¬

ternal

the

preferred shares will

lowering of interest Adenauer, who openly accused it
Germany will have the of punishing small business and
1958.
increasing German in¬ "axeing" the business boom. This

year, or

per

following

"Ward's"

Pfd. Stock Offered

lative preferred

statistical

October-December

11-20

liberal

toward wage increases.
It is true that restrictive credit
action was taken in

The

releasing details of its 1958 model

ations

Electric
meetings,
Co.
at
bounties to the electorate by
way
the rediscount double change, up
share).
y
of tax reduction and social secu¬
and down, will get relief of the
Proceeds from
exehiange pressure well-started in rity increases, with encouragement
the

in consumer purchasing habits—
sales ran 2% below the like period in 1956,
said, not only reflects a willingness to purchase but
also is spurring fourth quarter production schedules.
"Ward's"

the

will

Dillon, Read & Co. Inc. and The
Company head an invest¬
ment banking group which is of¬
ilfering today (Oct. 3) 80,000 cumu¬

start of the postwar regime, when
the economy was severely suffer¬

Action

From

the

side

This significant about-face

January-August

absent, and the opportunity is not

Thursday, October 3, 1957

...

for

2,108,000

tons

the
of

entire industry, will be an

week

beginning

ingot and

steel

for

82.2% of capacity, and 2,105,000 tons
011 ^annual

For the

capacity

like week

(revised)

133,495,150

month

ago

1957,

castings,

The industry's ingot production rate for

based

compared

with

week ago.

the weeks in 1957

tons

the rate

of 82.4%

equivalent

average

Sept. .30,

was

Jan.

81.0%; and

1957.pro-

-(1479)

The Commercial and Financial Chronicle

Number 5678

Volume 186

1
was

tons.

The percentage figures for 1956 are

higher than capacity in 1956.
based

moderately.
Trading in wheat futures was sluggish, as orders from flour
millers sagged, resulting in a noticeable price decline. Although
rye futures prices dropped appreciably, quotations on oats were
close to those of the prior week. Wholesalers of most grains re¬
ported a lack of export business during the week.
Some scattered orders for flour helped prices remain close
to those of a week earlier. Flour receipts at New York railroad
terminals amounted to 94,216 sacks, including 20,541 for export

on an

annual capacity of 128,363,090 tons as of Jan. 1, 1956.

Electric Output

Receded the Past Week

electric energy distributed by the electric
light and power industry for the week ended Saturday, Sept. 28,
1957, was estimated at 11,697,000,000 kwh.j according to the Edison
Electric Institute.
Output the past week turned lower following
amount

The

•

and

16,213

cars,

or.

slightly to 324,451 bags and compared with 379,338 bags a year
ago. Arrivals in the United States so far this year totaled 2,578,081
bags, as against 3,278,792 bags in the corresponding period last

year.

•

;U, S. Automotive Output Continued at a Low Level
The Past Week as a Result of 1958 Model Changeovers
:

Automotive .output for the latest.week ended Sept. 27,

•

stantially curtailed
model

week's

Last

52.365

with

rate

Last week the

week

•

and

13,316

reported there were 8,821 trucks made

agency

This compared with 13,441 in the

United States.

in the

■

ago.

a year

■

declined below that of the previous
week by 1,140 cars, while truck output decreased by 4,620 vehicles
during the week. In the corresponding week last year 43,369 cars
and 13,316 trucks were assembled.
v"." ,,\
In Canada, 900 cars and 190 trucks were built last week as
compared: With 2,234 cars and 835 trucks in the preceding week
and 5,369 cars and 934 trucks in the like period a year ago.
Last week's car output

•

Lumber Shipments of 485
•

■«

below the like week of

1956.

...

government holdings of 9,700,000

Fall

furniture

week

ended

industrial

and

cars,

Sept.

287

from

dipped

in the

278

preceding week,

Bradstreet, Inc., reports. However, casualties remained moderately above the 251 a year ago and the 186 in 1955. Failures also
exceeded by 5% the pre-war level of 264 in the similar week of
1939.
\?
\
: v ; - ;:v ;
Liabilities of $5,000 or more were involved in 231 of the
week's casualties as compared with 237 in the previous week

*•

•

Small failures under $5,000, dipped to 47 from
50 but continued above the 36 of this size in 1956.
Twenty-five
businesses failed
involving liabilities in excess of $100,000 as

1
'

mild
declines prevailed in other industry, groups.
In manufacturing,
construction and
commercial service failures declined.
More
businesses failed than a year ago in all lines except wholesaling.
Six of the nine major geographic regions reported increases
during the week, but a marked drop in .'the Middle Atlantic States
to 76 from 102 brought the overall total down from a week ago.
Casualties in the Pacific, East North Central and South Atlantic
.

Year-to-year increases occurred in four

states advanced.

regions,

Atlantic States, while five re¬
than a year ago.,.

noticeably the Pacific and South

gions had fewer casualties

Wholesale Food

Price Index Again Turns Sharply

Lower the Past Week

sharp downward'movement- of the previous
week, the Dun & Bradstreet wholesale food price index fell to
$6.17 on Sept. 24, from S6.24 a week earlier. The current index
Continuing the

compares

rise

when

it stood at $6.11.

•-

cost last- week were flour, rye, hams,
butter, sugar, raisins, and prunes." The list of declines included
wheat, corn, oats, barley^-bellies*. lard, coffee, cottonseed oil,
-cocoa, peas, eggs, potatoes, hogs!and lambs."
>'
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its chief func¬
r

with $6.08 on the corresponding date a year ago, or a
It is the lowest in four months, or since May 28,

1.5%.

Higher in wholesale

is to show the general trend

tion

level.

of food prices at the wholesale
■

...

Commodity Price Index Scores Further

Wholesale

Decline the Past Week

J There-was another decline in" the general commodity price
last week, with decreases occurring in prices on grains,
livestocks rubber and steel scrap. On Sept. 23 the daily whole¬
sale commodity price index, compiled by Dun & Bradstreet, Inc.,
fell to 286.96 from 288.28 a week earlier and 298.77 on the com¬

level

parable date

year

ago.

••

decreased fractionally, following reports of favorable weather conditions in growing areas. Corn buying, however,
Corn prices

■

improved somewhat at the end of the week, as forecasts

ing

temperatures in Northern producing areas

were

of freez¬

announced.

interest,

stock

aquired for

amount by Bank
(International),

America

wholly-owned subsidiary of Bank

;

America,

N. T.

San

S. A.,

that
in

parties in our
the feeling
of the board that it would be in
the best interests of Transamerica
stockholders to devote full ener¬
gies
of

the

was

further development,

banking operations in the
states."
(It is con¬

our

Western

that these banks will
hands of Firstamerica

templated
the

to
"Also,"
said, "the board de¬

Corporation in 1958, according

England —7 to —3 and

recently announced plans.)

Belgrano

Mr.

cided that because

of our common

heritage, Bank of America should
be given first opportunity to ac¬
quire our interest in our Italian
subsidiary.
"We are pleased, therefore, that
the successful purchaser is affili¬
ated with Bank of America, N. T.

slacks.
lamps and lighting fix¬

also

who
as

well

Bank of America.

able transaction

stockholders,
that

for

to the active"
banking operations
America will be an

addition

this

international
of

Bank

profit¬
Transamerica
are
sure, too,

addition to being a

"In

important stimulant to the further
development of trade between the
United State and Italy. Further¬
more,

it will assist

in the advance¬
of the Italiaw

ment of the economy

people."

Two With

in pur¬
fresh meat, poultry

Central States

MANSFIELD, Ohio

1956,
weather and the celebration
Year were important factors

sales volume.

Harold T.

pany,

and

Walpark Building.

Revel Miller Adds
1

week

—

Stanley K. Morris
have been added to the staff of
Central States Investment Com¬
Heitzman

1956.
in New York City the past
that of the similar period in

Chronicle)

(Special to The Financial

fell somewhat
Department store sales on a

trade sales vplume

was

late A. P. Giannini,
founded Transamerica

created by the

of the preceding

country-wide basis as taken from
the Federal Reserve Board's index for the week-ended Sept. 21,
1957, declined 4% from the like period last year. In the pre¬
ceding week, Sept. 14, 1957, a gain of 1% was reported. For the
four weeks ended Sept. 21, 1957, an increase of 1% was reported.
For the period Jan. I, 1957 to Sept. 21, 1957, an increase of 2%

bank

Italian

The

S.A.

eggs

in the lower

of several

bank.

Italian

Trading in the textile market improved last week.
While wholesalers reported
a moderate increase

during

November, 1956, I advised the
of Transamerica of the

interest

from 3% below to 1% higher

Rainy
the week of the Jewish New

"On

directors

week.

7% to 9% below
according to trade observers.

potential

Mr. Belgrano explained
my
return from Italy

holdings.

meat, poultry and dairy products, but interest in
frozen foods was unchanged.
Although wholesale orders for women's apparel lagged behind
those of a week earlier, they noticeably exceeded those of the
-similar
1956 week.
Bookings in children's clothing slackened
during the week.
A substantial gain was reported in purchases of furniture
at the wholesale level. The buying of housewares expanded ap¬
preciably and buyers anticipating the Christmas season, notice¬
ably stepped up their orders for toys and games. Orders for major

declined

corporation's foreign banking

purchasers had expressed an ac¬
tive
interest
in
acquiring
its

fresh

registered above that of

directors
decided to sell

Transamerica

subsidiary after several

purchases

Retail

board of

the

said

fresh fruit and vegetables and

was

correspondent banks in
provide their customers
foreign banking
throughout the world."

complete

of major appliances were sluggish during the
week. While shoppers stepped up their buying of linens and floor
coverings, the call for draperies, curtains and slip covers sagged.
There was a moderate rise in volume in upholstered and bed¬
room
furniture. Grocers reported a decrease in sales of canned

and

offices,

service

Ago

and coffee, interest in

now

with

and

chases of bittter, sugar

will

order

the

sets were close to those

their

broaden

in the

banks, with

arrangements

300

than

stores

apoliances and television

corporation can
the develop¬

banks

its

Bel¬

Western States. These

year ago,

goods,

concentrate

now

Mr.

not only of fi¬
Transamerica.

It also means the

reported slight declines in the buying of
suits, offsetting gains in dresses, millinery
and sportswear.
Interest in girls' clothing was sustained at the
level of a week earlier. Volume in men's apparel fell somewhat,
with the most noticeable decreases in topcoats, suits and hats;
the call for dress shirts advanced substantially.
Best-sellers in

tures,

benefit

nancial

major appliances and food products, but sales of
housewares remained higher than those of a year

coats

d'ltalia,"

said, "was

grano

bales.

+1; East North Central —4 to 0; New
Atlantic States —9 to —5%.

satisfactory sale of Banca

"The

Further Slight Decline

boys' clothing were sports jackets and
Except for some scattered sales of

against 21 in the preceding week.
Retail and wholesaling casualties edged upward while

and

Apparel

cor¬

bank, which has
equivalent to more

undisclosed

discouraged consumer buying in many

Wednesday of last week was

women's

215 last year.

and

Italian

the

than $270,000,000, was

Middle

•

total resources

according to estimates by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1956 levels by
the following percentages: West South Central States +4 to -f 8%;
Pacific Coast +2 to +6; West North Central +1 to +5; South
Atlantic —1 to +3; East South Central —2 to -f 2; Mountain —3

in the
Dun &

Oct.

d'ltalia.

Transamerica's

The

Previous Period
failures

ica

Sales promotions helped boost volume in new passenger
but dealer inventories continued to exceed year ago levels.
total dollar volume of retail trade in the period ended

ago.

Modestly Lower Following

16-Week High of
Commercial

Volume Registers

apparel,

than

^'Business Failures Turn

•

sale of the

the

foreign

Continued hot weather

...

poration's stock interest in its sole
foreign subsidiary, Banca d'Amer-

regions the past week and total retail volume was slightly below
that of both the previous week and the similar period last year.
Moderate declines were reported in purchases of many lines of

President

Corporation,

ment

Both for Week and Year

according to the

Chairman

Jr.,

and

d'America

Trade

period, new orders
were 0.8% below production, thlfilled orders amounted to 29%
of
stocks.
Production was 0.1% below; shipments 10.6% above and
new
orders were up 2.7% from the previous week and 15.0%

•

Board

announced

Belgrano,

Transamerica

fell below week earlier levels.

and prices

with

reporting mills in the week ended

Sept. 21, 1957, were 4.9% above production,
National Lumber Trade Barometer. In the same

the

August totaled 22,500,000 bales, including 5,100,000 bales held by
the government. Stocks a year ago amounted to 26,200,000 bales,

Production in

Lumber Shipments 4.9%: Above
Latest Week

❖

Francisco, Calif.

of $2,988.-

resources

000,000.

slightly below the 34,300 bales daily rate of August 1956, but
higher than the 22,500 bales of July, according to the United
States Bureau of the Census.
The New York Cotton Exchange
Service Bureau estimated that total cotton stocks at the end of

•production total of cars and trucks amounted to 60,046 units,
; or a decline of 5,760 units below thati .of the preceding week's

output, states "Ward's."

000 and total

prices dropped moderately.
Reports of unfavorable weather conditions in the Cotton Belt
resulted in slight rise in cotton futures prices.
Cotton consump¬
tion in August was equal to a daily rate of 33,300 bales. This was

...

totaled >5i,225, units and compared
the previous week. - The past week's

(revised)

Banks & Bankers

While cattle re¬
ceipts dipped somewhat below those of the preceding week, they
were
slightly above year ago levels. Although salable receipts
of lambs were the lightest for any week in almost a month, lamb
prices dipped. Following the decline in hog prices, lard futures

output

car

News About

the third consecutive week as buy¬

Hog prices declined for

ened

1957,

continued, at a sub¬
manufacturers concentrated on 1958

v.\

changeovers.

' ■

•

from page 17

ing narrowed, while hog receipts in Chicago were at the highest
level for any week since early June.
Purchases of cattle slack¬

according to "Ward's Automotive Reports,"

•<

preceding week.

prior week. Fractional declines were reported in cocoa futures
prices. Trading fell somewhat, as buyers awaited reports on crop
estimates.
Warehouse stocks of cocoa in New York- declined

ciation of American Railroads reports^:-,c ">r "
v
V
/ : ; Loadings for the week ended Sept. ^l, 1957,. totaled 724,934
cars, a decrease of 97,502 cars, or 11,9%.-below the corresponding
1956 week and a decrease of 88,786 cars, or 10.9% lower than the
corresponding week in 1955.,

of the

the preceding-week, the Asso¬

2.2%

rains

Continued

and

There was a slight decline in raw
sugar prices, as trading lagged.
!
Prospects of larger supplies and crops in the next marketing
year discouraged coffee buying last week.
Orders from roasters
fell noticeably, and futures prices slipped below the levels of the

Loadings of revenue freight for the week ended Sept.^1, 1957,
declined by

Louisiana

levels

Loadings Eased by 2.2% in Latest Week Following
Gains of Preceding Period

Car

curtailed last week by heavy

of rice were

Arkansas, and wholesale stocks were in short
supply. Inventories 'were cut further by increased export demand
from Cuba and Korea.
Rice prices were unchanged from the
in

kwh., below
; that of the previous week but advanced'by-332,000,000 kwh., or
2.9% above that comparable 1956 week and 1,070,000,000 kwh.
•over
the week ended Oct.1!, 1955.--" ^

•

and prices fell

73,675 for domestic use.
Movements

i modest improvement in the preceding week.
The past week's output decreased 294,000 000

of soybeans lagged

Purchases

A year ago the actual weekly production
placed at 2,506,000 tons or 101.8%.
The
operating rate is not comparable because capacity is

duction 2,013,000

(Special to The Financial

LOS

Chronicle)

ANGELES, Calif.—Dale

with Revel Miller
& Co., 650 South Spring Street,
members
of
the Pacific Coast

Billips is now

Stock

Exchange.

department

According to the Federal Reserve Board's index,
store sales in New York City for the weekly period ended

Sept. 21,

below that of the like period of last year. In
the preceding week, Sept. 14, 1957, a decline of 5% (revised) was
reported. For the four weeks ending Sept. 21, 1957, a decrease
of 1% was registered. For the period of Jan. 1, 1957 to Sept. 21,
1957, the index recorded a gain of 3% above that of the corre¬
sponding period of 1956.

Joins Jonathan

1957, decreased 11%

(Special to The Financial

LOS
H.

ANGELES,

Christiansen
TAnolhon

Staff

Chronicle!

Calif.—Richard
joined the

has

Wll-

(1480)

The Commercial and Financial Chronicle

Continued

from

There are two ways to check
continual rises in prices: (a) in¬

page

the

crease

Fundamental Principles For
A Sound Future
12%,

after

effect

their

the

eliminating
price changes.

even

ings.

The record of the past four years
one
of great enhancement in

increased

policies,

hospital

deposits

counts

life

insurance

banks

and

tration

and

homes

new

intriguing

with

This

the

come,

security

living

achieved

time

the

in¬

been

trary

the

some

the

dire

of
our

flation

predictions

opposite

party,

free economy has demonstrated its

ability

absorb

government

reductions

expenditures

not

cents

To what extent have

of our

people.

The record of the past four years
has been one of unequaled in¬
vestment. The' Nation has devoted,
vast

amount

improving

have

nesses

capacity.

spent

duction

all-time

new

in the preceding four years.
This
volume of capital outlays

dramatic

to those who would

answer

contend that

economy
would
run
down
without the artificial stimulus of
chronic deficit spending and the

demands

that they
determine their
cerns,

course

their

free from
in the

will
own

tures

con¬

free

home

choice,

the

not

war,

preparedness,

but

The budget proposed for the fis¬
year 1954 called for
nearly a

cal

$10

billion

deficit.

The

Eisen¬

our
communities, to
hower Administration reduced
future, and to buy
that to less than
automobile or the
one-third of that
home, to

for

build

the

anticipated by the prior Adminis¬

factory or the schoola brighter future
jus¬

tration.

house, that

All

tifies.
The

record

the

past

years is one of sensitive and flex¬
ible adjustments to the
release of

this

made

largest tax cut in
history, a cut that

four

saved

our

lion

the

Nation's

has

already

people nearly $25 bil¬

in taxes. In that
controls, and to the return to free
way we were
able to pass most of the
markets, an accommodation of the
savings

post-Korea curtailment in
military
and of a free market's

epending,
emphasis
merable

housing and innu¬
improved items
living, automobiles, and

for better

plant

new

and

new

construction

production of

people and
with

goods for

the

better jobs,
improvement in

more and

continuous

the total
economy.
It is a record of

savings

for

encouraging

and

investment in in¬
productive
capacity, of
encouraging an adequate volume
of credit, but of not
creased

that

excess

encouraging

credit

which, in a
period of high employment, could
only penalize our people by bid¬
ding up prices without increasing
production.
It is

ible
and

essentially a record of flex¬
quickly adjusting^fiscal
monetary policy designed to
and

continue

sound

money

and

the

sound
improvement in levels of
living, widely shared, which is the

wonder
rest
It

and

the

all

reduced

our

back

the

people

save or

spend
best by their

stead

expenditures
for them to

they each thought

own

free choice in¬

having the Government
spending for them. More
than 60% of this
huge reduction
direct its
went

individuals,

and

every

taxpayer in this country benefited.
The

tax

burden

still

heavy, and further tax
will be

and

justifiable

made

far

too

cuts should

the earliest

opportunity.

Fiscal 1955

was

the last year of

deficits.
nscal 1956, we had entirely
eliminated deficits, balanced the
budget, and completed the year
jL,y

1958

orovides

surplus

for

the

third

first

successive

time

years.

record

of the

people in the preservation
individual freedom
of

their

choice, in their jobs, in theii; right
to the enjoyment of the fruits of

higher interest just

cost.

and

Two Way

labor, but we also know that
higher labor cost is a two-sided
coin.

Someone pays more — but
someone receives more.
The same
is true of interest.

Everyone with
policy, with a sav¬

insurance

ings account,
an

with

account in

association,

pension,

savings and loan

or a fraternal

organi¬

zation

or union
fund, or with hos¬
pitalization, or savings in almost
any other way, benefits from pay¬

of interest.

ment

Increased interest stimulates
savings. The higher interest rates
paid in the past few years have
encouraged

greater savings. Dur¬

ing the lour
saved

years

the

Eisen¬

Administration, our people
$75 billion in personal sav¬

ings compared to only about $56 %

have

savings are a major
assuring continued high
employment and prosperity. Sav¬
ings buy the tools that make the
jobs that pay the higher wages
of

enjoy.

now

Without

savings
and investment,
employment
would languish.
,

The

record

continuous rise in prices af¬

fects
on
a

saver.

its

every

housewife,

everyone

pension, every person with
or
lagging income, every

fixed

robs

labor

gain in wages.

much

activity.

expansion of

;

security to
they have ever

our

centive.

the

economic

expansion.

This

sharp contrast to the artificial re¬
strictions, interferences, and con¬
of

paternalistic

bureauc¬

young,

henceforth

largess of
ment

led

were

for

Not

Perfect

everything is Completely well.
told

the

mittee
of

Senate

Finance

mid-June,

renewed

per¬

domestic

consumer

prices

risep for 16 of the past 17
The

months.
dex

than

consumer

almost

now

was

price in¬

higher

months ago.

It is important that this renewal
of

inflationary

curbed.

pressures

disagree

completely

with those who sometimes foolish¬

ly suggest that "a little inflation
a good thing."
Inflation "little"

"big" is

bad thing.

benefits the
the

Inflation

relatively few

lators, but is

cruel

specu¬

injustice to

vast

majority of our people
ultimately destroys the eco¬
nomic vitality of
any nation.
Monetary
and
fiscal
policies

and

have not yet fully overcome infla¬
tionary pressures, and accompany¬
ing higher interest rates have led
some
partisan critics to suggest
that

these

not

policies

underrate

History has

powerful

four

years

But

per¬

now

these

Republican

prices before
buys wisely and

borrows

and

excess,

con¬

prices will stabilize, and the fear
run-away
inflation will di¬
minish.

;

...

Current

fiscal
policies, if buttressed by public
understanding and active support,
monetary

be effective.

and

these

the

their

choice

proven

that they
for eco¬

influences

feasible

alternatives

been suggested.

Certainly

solve

pursuance

there

need

con¬

our

restraint,
for

excessive

state and

anti-infla¬

such

spending.

have

round

new

problems

of life, all of

Party

and

our

in the

must

remain

and avoid return to un¬
practiced which can lead
ultimately to the destruction of

sound

the
very
freedoms • which
made America great.

Ours

have

the

problems of
prosperity.; Vexing as they are,
they are }ess painful than the
problems of adversity. They can
and

are

now

will

be solved by a united
supporting the leadership
of a dedicated Republican Admin¬
istration
in
Washington and. at
many other levels of our govern¬

people

ment.

They

will

not

solved

returning

to the Democratize
policies of the past with mounting

debts and deficits, controls
and
restrictions, and reductions in the

value

our

money

half its

worth.
Let's

the

all

faith

work

our

unity, keep
principles, and

meet and solve in the free Ameri¬

way the problems of today in
order to maintain our present high

can

prosperity

for

bright

many

to¬

morrows.

Keller Adds

Staff

...

BOSTON,
Mass. — Donald E.
Lowe has been added to the staff
of Keller &

With B. C. Christopher
(Special to The Financial Chronicle)

KANSAS CITY, Mo.—Warren S.

Yukon is

;

affiliated with B. C.

■

'■

•

;

'•

*•

H. O. Peet Adds
(Special to The Financial Chronicle)

KANSAS

state,

this

now

Christopher & Co., Board of Trade
Building, members of the New
York Stock Exchange. Mr. Yukon
was previously with Bache & Co.

present

Co., 31 State Street.

CITY,

Gaines is

O. Peet &

now

Mo.—Ludwell
connected

with

Co., 23 West Tenth

Street, members of the New York
and Midwest Stock

Exchanges. He

formerly with Merrill Lynch,
municipal borrowing for Pierce, Fenner & Beane in Akron,
now

appears

that

the first nine months of this
year
total $5 billion, which is a
billion dollars more than was bor¬

was

Ohio.

will

rowed

sible

during the same period last
It might be well for respon¬
public officials in state and

municipal

governments

the
at

wisdom

this

)

(Special to Tub Financial Chronicle)

however,

Federal,

municipal governments as well as
businessmen
and
consumers
to
guard against excessive borrowing
connection

the

which
a

the real

objectives;
united
to
overcome
demagogic propaganda for politi¬

the

resort to direct

policies

for

between

united to support our fundamental

present policies of restraint have

and

life

free system.

our

tionary course
pursued,' and

tion, the policies may already be
taking hold. 9

not want to

practical matter,

contrary to

are

way

effective¬

stability.
There are indi¬
cations that, in our current situa¬

American

The alternatives

policies

relaxed.

nomic

ahead

both

progress,

con¬

servatively and spends reasonably

This would be utter
folly.
We must have the patience to
let our present policies work and

must rely upon the
paternalistic govern¬

all

must

The

cal ends

threat
is

...

serious

Com¬

"the

inflation

most

our

have

praise

and

can

fate.

demands fair

buys,

not

Republican

Now this fine record of the
past
years
does not mean that

that

sonal and national,

past

believe

free way
Is

four

year.

During the New and Fair Deal
days, many of us, particularly the

own

America, the everyday
citizen, is the all-powerful force.

preserve a sound economy

the

initiative through personal in¬

people,

our

sumers

en¬

•

the

free market economic
system
which offers both individual
free¬
dom of choice and the stimulation

control

im-

persons
.

greater inflation.

Administration is
ord

those

destructive of

Eisenhower trols... Governmentally
enforced
a
gratifying rec¬ wage or price controls during
improvement in the peace-time
arer not only incon¬
level of living that can be achieved sistent
with
our
traditions but
through a vigorous, competitive, would be well-nigh unenforceable.
.

the

rapidly rising economy which has
brought more wealth, more pur¬
chasing power, more comfort,
more
jobs, more homes, more
luxuries, more leisure, more edu¬

are

means

can

ness.

racy.

substantially checked

well

third in savings.

Increased

well

debt management, we have
slowed the growth of
inflationary
credit.
We
have
encouraged
a

billion in the
preceding four years,
an
increase of more than one-

business

private and personal enterprise to
new high levels, and
through ex¬

The fact is that

the increased cost

wages and labor benefits that are
fair to the rest of the community

and

haps
a

encourage

economic problem."

important

trols

Checking Inflation
We

the menace of inflation.

widespread confidence

who

particular, it shows
capacity of such a system to
surplus of $1.6 billion.
The 1957 budget resulted in an¬ bring about confidence and daring
in
other
enterprise,
and
widespread
surplus,
and
the
budget
participation in the benefits of
proposed by the President for
with

the

world.

above

renewal of
of the

ambition

from

-v-

people

many

last

within his means, supply will soon
balance demand, production and

make

hear complaints to¬
day about the increased cost of
money.
We know it is nowhere

hower

possible
our

pointed
January, "Business and
leadership have the respon¬
sibility to reach agreements on
out

spending, accompanied by recordbreaking tax reduction, and offset
a
threatened decline in employ¬

Street

You

are

and

Interest Rates Are

$41

ex¬

are

additional

from

tremely expensive research
development as well.

concerns, and

plan

pense

business

our

1953,

still engaged in a titanic
contest
which requires not
only the ex¬

our government

owners,

reduced

would

able

Responsibility

labor

We,

con¬

We havft accommodated the re¬
duction
in
wartime government

sav¬

there are many who find it an

pay increases,
increasingly ex¬

been

benefit from

by the Con¬

the huge costs of

billion

that, though

and our
money, and
the wider
distribution of purchasing
power,
have encouraged our
consumers,
our

$50

important points.

There

billion in 1957. This reduction has
been achieved
despite the fact

course—the

free

own

have

our
over

importance of savings is
that

three

billion.

been

All

The

defense.

our

unnecessary

stability of

$10

have

Our

problems

have shifted from those of

use

As President Eisenhower

stability mediately involved

joyed before.

encouraged

great

result of additional

We have met

regulation
harasj-tnent—greater confidence

nearly

as a

have

trolled wartime economy to those
of a rapidly
widening prosperity.

ings.

Major national security expendi¬
business

our

And

duction.

de¬

The increased confidence of

people and

en¬

pensive military equipment, ex¬
penditures increased in the past
year by almost $5 billion for
1957,
or nearly half of our
previous re¬

our

backlog of private
ferred by the war.

then

and

Our

economy.

high

very

and materials;

cation, and
people than

favor¬

We have encouraged trade with
other countries.

expendi¬
$74 billion in the

gress, substantial
and the need for

record

provided

and

programs authorized

plant
pared with less than $125 billion

has

Federal

over

However,

than $150 billion on
and equipment, com¬

the

growth

penditure and debt reductions,

private

prevent monopolies.
We have encouraged small busi¬

accom¬

budget of 1953 to less
$64 V2 billion in 1955, a re¬

than

with

able climate for
enterprise.
We have moved
vigorously

inherited

its

Busi¬

reduced

tures from

resources

ancl enlarging

productive

high, of

its

compete

We have created

tirely eliminated planned deficits.
We

areas.

promptly relieved the pub¬

which

freedom

have encouraged

ness.

first reduced

individual

the

and

public

promote

men

ment

serious

all.

business.

inherited?

much

would

We reduced Government activi¬

ties

the

improvement in what

it has other

this prosperity.

for

lic of the burden of controls.

1952.

plished

created

in several other

$9^2 billion

reduced

burdens

There has been effective action

purchasing power of the dollar by
nearly one-half from 1939 to 52

contracting, but by expanding em¬
ployment and the living standards
i

had

the prices of
of goods and

But not to do

burdens for

pro¬

continuing spiral of in¬

which

bid

supply

higher interest, just

1953, and a planned deficit of
nearly $10 billion for 1954..
A.nd

rapid growth

additional

borrowers.

$74

over

and

limited

ury

for

substantial contraction

1953,

deficit of nearly

defense expenditures. Con¬

our

fiscal

too

raise

policies

designed

time

better

changes

available

provide

and

economy to adjust to large
in the pattern of demand

the

services. This subjected the Treas¬

have
for

budget expenditures
nearly $78 billion for 1954.

there

the

office in January

posed

and

has

when

available

;

billion

increase

number

better pay,

effectiviness

en¬

in the number of borrowed dollars

faced—

levels of living. • These four years
have tested the
capacity of our

supply of
The Federal Reserve and
the Administration then took ac¬

1953

Budget expenditures of

standards,

people

our

has been
in

increase

great

jobs, at

are.

methods.

expand,

increasing

for

goods.

security of our

Faced

came

come.

and

new small business concerns.

both

way

renewed

bidding

couraged an increase in produc¬
facilities which is the only

Federal debt equal to nearly
of our annual national in¬

90 %

new

appliances,

the

dollars

tion to restrain

1953,
A

shareholdings in American in¬

dustry,

utilized

When the Republican Adminis¬

ac¬

asso¬

ciations, fraternal and union funds
and

record

Problems

insurance, time

savings and loan

tive

country.

personal financial security, in such
forms

slow

economy

The Eisenhower Administration

initiative and endeavor,
the security of their sav¬

confidence

supply of goods, and
the expansion in the

what goods there

own

and

(b)

number

administration have demonstrated
the ability of the nation's private

Thursday, October 3, 1957

...

time

ap¬

forging

under present

McDonald, Holman Branch
(Special to The Financial Chronicle)

LOS

ANGELES,

office at 639

James

All parts of our population must
remain aware of the dangers of

Manager.

over-supply of

ager of

and

credit

—

Mc¬

York,

conditions.

money

Calif.

Holman & Co., Inc., of
has opened a branch

Donald,
New

South

Johnson

Kenneth

Spring Street.
is

Resident
Russell

associated with the office as Man*

the Local Trading Dept.

The Commercial and

Number 5678

Volume 186

Continued

$26,600,000 Oregon

Chance of

By Banking Syndicate
and

Trust

Bankers

Company
Savings

and

Trust

and
Bank

joint managers of the group
that made public offering on Oct. 1
of two issues of State of Oregon
bonds. The larger consists of $20,are

600,000 in 2% and 3% state high¬
bonds which are being reoffered
at prices to yield from

way

2.70%

for those due Nov.

1, 1960

1973 and 1974
maturities. Bonds due 1968 to 1974
3.25%

for

the

cerned, and adequate as far as the
companies are concerned. A fair
measure
of adequacy
over
the

awarded the

bid naming a net in¬

terest cost of 3.17261%.
T

The

smaller

the

issues

this

yields only
yield and

Continued from page

become

the

crease

when

dividends

nor¬

underwriting

profitable

mally

merger

The Present

Outlook

management, soon to
largest fire-casualty

with Firemen's of Newark

affected, the strongest company
financially in the business, Con¬
tinental Insurance. It is the only

effect, each time, said that since
are fast running out,
it sees no reason at this late stage
lor revising accounting methods
such benefits

now.

"This

con¬

tee

ever

get that far and if it did, the
would not
be seen
until

tial discounts.

effect

possibly i959 earnings, since I be¬
lieve Congress will be far too busy

"Chance

talk

Predicts Restored Profits
when

the

industry

since
op¬

1947

have

Decade."

there

two companies

Not

been such

named

which need only to
be

I.C.C. could take note of this Com¬

recommended,

Hartford Fire and Insurance Co. of

opportunities—and 10 years ago
we saw these opportunities grad¬

erating

profit

mittee's rehashing
and act

13 Banks for Cooper¬

Western states sat down with

10
in¬

Presidents

commissioners

insurance

atives Sell Debs.

surance

company

review

the

first

six

Since

months'

Cooperatives figures and the need for rate in¬
are offering publicly today
(Oct. creases. Discounts have been
3)
$63,000,000 of 7-month con¬ lowered
on
fire
term
policies
solidated collateral trust deben¬ (three and five year) in nearly 40
tures, according to their fiscal states,
the
equivalent
of
an
eventual raising of rates of around

7%. The rate increases have just
with the assistance of begun in fire. A sustained effort
group
of security is being made by the companies
dealers.
4
to persuade their assureds to in¬
."The debentures
are being of¬ crease* rtheir>-insurance
more; in
fered at par and bear interest at line with current values—which

fiscal agent

nationwide

The interest is

at
15,
will mature May 15,

payable with
the principal
maturity. They are dated Oct.
1958.
*

rates, averaging close to 20% have
been-effected. Recalcitrant com¬

proceeds from the sale of missioners—and not- only in the
will be used to Bay State—have been brought to
redeem the $48,200,000 of 3 3A%
book by
judicial process. Hur¬
debentures due Oct. 15, to repay ricane (extended coverage) rates
have gone up as much as 100% in
short-term
borrowings, and for
certain states. Ocean marine rates
lending operations.
are
debentures

up.

debentures

The

and

are

several obligations

joint

the

of the 13

You will find that

insurance has

times be¬
banks for cooperatives. The banks fore. It has a flexibility, a way of
adjusting itself to new conditions
are chartered under the provisions
We are in the midst of just such
of the Farm Credit Act of
*an adjustment now that will spell
They operate under the super¬ a return of underwriting profits
vision of the Farm Credit Admin¬ and higher dividends and prices
istration.

The

service loans to

ing,

banks

and

lived through disastrous

for insurance shares.

and

cooperatives

itself

Increased

Yield and

Price

(3)
now

The

corrective
undertaken

you have followed
reasoning thus far and agree
that this is the best chance in a
decade to buy insurance stocks,
my

by making reported
earnings lower,
would
more
imperative a really

make

huge hike in freight rates which
would add further fuel to the fires

you are

probably asking: which of

Current

income

Continental.

and

particularly suited to their needs.

•

reasonable

predict a 38%

in¬

accounting

method
accounting.
"Moreover, future years' results
will show greater effects from the

which includes among one

"sum-of-the-digits"

of the intervening tax

use

much

•

you,

will

the

about

Paul

Ad¬

ditionally, Congress may well re¬
tax rate from

duce Federal Income

to 50% next July.

52%
"I

but I cannot help
this tax bene¬
present time. It

sorry

the overstressing of

fit

at the

factor

burn itself out
bit concerned
future earnings effects

will

just have to

and

about

not

the

special properties in which
and I are interested."

for the
you

this wire on Sept.
had the good fortune
to visit with financial men of two
widely-separated railroads, each
Since writing

have

whom in

answer

to my ques¬

tion—and without any

prodding—

freely volunteered the manner in
which their railroads would have

increased

substantially
Net

pre-tax

Income—traffic volume being

what

today—with which to
the future in¬

mbre-than-offset
creased
taxes
run

"bite" of Federal Income

amortization benefits

when

out!

In summary,

the

present

I sincerely feel, that

another of those

periods which we in the railroad
analytical profession have experi¬
enced
repeatedly in the
past,
where many rail stocks are ex¬

attractive

"buys"

—

for

Categories

company

advant¬

fast amortization.

ages from

both substantial capital gain and
growth— excellent interim yield.

And seasoned with just a dash
(1) For top quality long-term of this magnificent Poland
growth, a company entering a Springs "who could ask for any¬
new and
greatly expanded phase thing more?"
of activities with its entrance in
the life business, with an under¬
Pacific Coast Sees. Adds
writing
profit 0 margin
almost
(Special to The Financial Chronicle)
twice as high as any other of the
BEVERLY HILLS, Calif.—W
dozen
companies over the past
years,

offset to some
substitution of new
methods for railroads'

ning off, will be
degree by the

growth— tremely

"sleeker"—Northern.

hear

aims

present administration.
"For a long time I have held
that this point has been too much
overstressed; more that the earn¬
ings' effect, while gradually run¬

Murphy Director

Suggests Eligible

thus further de¬

and

anti-inflationary

feat

Recognized quality and growth
eligible and why? And I
—Hartford and Insurance Co. of
am
going to crawl right out on
North America.
the limb and try to oblige. I shall
Rapid growth, better yield, a
mention four categories.
the

inflation

gories of eligibles:
Top quality long-term

granted,

railroad

to return

Federal.

expire within an¬
years—also on which,

2-3

measures

being

other

history;

best

matter

automatically

associ¬
Securitie
Wilshire Boule-

Calhoun has become

ated with Pacific Coast

Company,
9201
Specifically
for
your
dozen future-r-Federal Insurance. In the v*"-' ~
'^rrierly with Les¬
terms eligible insurance stocks it seems past four years its investment in¬ ter, Ryons & Co.
come
and
dividends have
in¬

business
on

country.

of the

its own, but I seriously

any

would

profits to underwriting and con¬
multiple line companies may soon fidence to the insurance share
belong in the casualty category.
market;
The restriction has already elim¬
(4) A potential increase in the
inated
such
top
well-managed
yield of today's eligibles from
companies as
Continental Cas¬ 3.5% to 4.8% (at today's cost) by
ualty, United States Fidelity & 1959 with a
possible capital rise
Guaranty and Employers Group of
73% ;
Associates, one of your own and
(5) The desirability of common
too little known Massachusetts in¬
stocks
generally
in
a
savings
stitutions. It may serve to elim¬
bank's investment
program
and
inate such a bellwether as Hart¬
the. need for broadening the base
ford Fire within the visible future.
for insurance stock eligibility to
A revision of the law correcting
include fnore casualty lines;
the situation seems sensible and
(6)
Four recommended cate¬

five

farmers' market¬

purchasing,

service

make

in the

mean
more
money
to the
companies immediately. In auto- ' warranted.
mobile
substantial
Increases in
Finally, if

will

The

the

assets

Casualty lines are growing

faster than fire, some of our

The 13 Banks For

agent, John T. Knox. The deben¬
tures
are
being
sold by their

panies

such action since this
require I.C.C. to reverse
a
condition which will

doubt

and

Congress two weeks ago
adopted by the full
Committee, yet which still has to
come
up
for full Congressional
action. I seriously doubt if it will

1957,

subcommit¬

since

,4.85% per annum.

and

North America. The yield on both
a negative margin of
is small, less than 2.5% on aver¬
in 1956 and the first half ually being fulfilled in the insur¬
of
1957
(a negative margin of ance share bull market of 1948 age — but the growth and the
of the 3V4% bonds are being re- nearly 3%), clearly this is inade¬ and 1949. Insurance shares then quality are sure. Let us appro¬
for both the
Hartford's
offered at 100% and $2,000,000 of quate and corrective measures are rose 41% compared with 11% for priate
the 31/2% bonds are being reof- called for. The last time the busi¬
the Dow Jones Industrial Average. famous slogan, the one with the
antlers: "Year in and year out,
fered at 102V:>. They are subject to ness operated at a clearly inade¬
Should savings bankers be con¬
redemption at par and accrued in¬ quate margin of profit was 10 cerned about such matters as rising you'll do well with the Hartford"
terest at the option of the state on years ago, in 1946, when there dividends and rising market values (and also Insurance Co. of North
or after Oct. 1, 1967.
was
actually a profit margin of —whether in insurance stocks or America).
(4)
For rapid growth, better
Rated Aa by Moody's, the bonds 1.2%. Corrective measures were common stocks generally—when
than average yield,
a
company
are
general obligations of the taken in 1947 and the margin of your
obligations
are
in fixed
which on its record deserves to
state, for the payment of which underwriting profit improved to dollars?
become more widely known, fast¬
the full faith and credit of the 3.7%, in 1948 to 8.8% and in 1949
I say "yes" for three reasons:
est growing of the dozen eligibles
state are pledged.
to
12.4%. When
the
pendulum
(1) Your expenses are not in with a profit margin second only
Among those.; associated
with swings too far one way and pro¬
fixed dollars, they are constantly to Federal, a good and hardwork¬
'Bankers Trust Company and Har¬ duces an adequate
margin
of
rising. Rising dividends help al¬ ing management, Northern Insur¬
iris Trust and Savings Bank in the profit, it tends to swing too far
leviate this constant "squeeze."
ance
of New York. Its yield is
the other way and produces ah
offering are:
f
(2) Rising capital values help 3.8%, its investment income rose
The First National City Bank of exaggerated margin of profit in
offset shrinkage in other portions 51% during the. past four years
New York; First National Bank of order to affect an average over
of your portfolios,' mortgages or and its 'dividend only 36% — so
'Portland; The Chase Manhattan the period. I believe we are in the
bonds.
further substantial increases ap¬
Bank; Kuhn, Loeb & Co.; Blyth & early stages of such a swing up¬
(3) In an inflationary economy
Co.,
Inc.; The Northern Trust wards in the underwriting margin where other institutions are ag¬ pear likely. A "sleeper" among
the eligibles, Northern Insurance
^Company;; Chemical
Corn Ex¬ of profit now.
gressively competing for the con¬ of New York.
change Bank; The Philadelphia
What is being done? First of sumers'
savings,
it can ill
be
National Bank, and Equitable Se¬
all, the insurance itself is aroused afforded by savings banks not to
Summary
curities Corporation.
after three straight years of de¬ seek the highest potential yields
There you have it in summary:
Seattle - First National Bank;
clining profit margins If the profit for their customers, commensurate
V
R. W. Pressprich & Co.; Eastman
(1) The great; performance of
margins get any worse, some cdm-. with safety.
'■
'
•'. ;
the eligibles since I was last be¬
"Dillon," Union* Securities & Co.; panies may have to decline right
fore you four years ago, dividends
F. S. Moseley 8c Co.; Dean Witter out of the business! It has become
Statutory Revision
up
32%, capital appreciation of
& Co.; Carl M. Loeb, Rhoades & almost
an
"either-or" situation.
Are your regulations on eligi¬
31%;
Co.; The Marine Trust Company Either conditions improve or some
bility overly restrictive? Perhaps ;
(2) The present attractive buy¬
of Western New York; J. C. Brad¬
companies will drop out of the in two respects, the emphasis
ing opportunity, best in a decade,
ford & Co.,. and F. S. Smithers & race.
Already
we
have
seen upon fire lines, that a minimum
because of the disastrous under¬
Company.
mergers and we shall see many of 50% of volume must be in this
writing
conditions
of the past
more.
category and the company must three
years,
worst in insurance
Just
recently, in Seattle, the be one of the 25 largest fire com¬

1, 1971, which were won on a bid
naming
a
net interest cost of
3.33213%. Of this total, $4,000,000

publicity is due to

new

recommendation of

Surely this is a prospect which
(3) For recognized quality of in the 1958 session to be concerned
should please—3.5% now, a po¬
and
growth,
two now with such picayunish details.
tential 4.8% within two years plus management
companies whose reputations as By 1959 tax benefits on earnings
years ending 1955 was 5.4%; for a 78% capital appreciation. That
investments
are
like will have been largely washed out.
the past 10 years 6.0%; and for is the situation in a nutshcll-^-and superior
"However, it is true that the
Caesar's wife, above suspicion—
that is why I have entitled this
the past 20 years 6.1%.

The average underwriting
margin of profit for §q;e- and
casualty companies for the five
way.

sists of $6,000,000 in 3V4 and 3Y2%
veterans welfare bonds, due Oct.

grow.

conditions return, say two years
been 5%
of earned from now, in the fall of 1959. The
average
yield
obtainable insurance stock, With its running
premiums. That is an average. 3.5%
4.8% at mate Fidelity-Phenix, listed on
Some lines, such as Workmen's now will have become
the New York Stock Exchange. It
Compensation, have a lower al¬ cost. And if these stocks sell in
the same relationship to invest¬ yields 4.4% today and it also has
lowable margin of profit, in this
of the largest r "blue chip";
ment income as they did three one
case only
But for insurance
common
stock portfolios of any
as
a whole,
5% would be a fair years ago, before the hurricane
and
working
average
for
the struck, there will be a price ap¬ insurance company—so in buying
Continental you are also buying
underwriting
margin
of
profit preciation of 78%. This is not a
into Standard Oil of N. J., I.B.M.,
allowed by the various state in¬ prediction but a possibility since
surance
commissioners.
And
in it has happened before duly re¬ General Electric and America's
other prime securities at substan¬
practice it has worked out that cently.

subject to redemption at par
and accrued interest at the option
of the state on or after Nov. 1,
1967. The group was

revitalized

has

years

are

bonds

now

(2)
For current income and
growth, a company also entering
a
new
era
of expansion under

Decade

watch

combination in the world when its

Bank joint

Savings

50%.

2.5%—but

In Insurance Stocks

Harris

and

of underwriting group.

managers

Harris

Co.

Trust

creased

from page 14

market price

Highway Bonds Won
Bankers

(1481)

Financial Chronicle

Murphy, security ana¬

Paul A.

lyst, has been elected a member
of the Board of Directors of the
Catalin Corporation of America,
Harry Krehbiel,
President, has
announced.
Mr. Murphy, who is associated
.

with the stock

Cyrus J.

brokerage firm of

Lawrence & Sons, has
financial circles for

been active in
^more

than

jot the New

20 years. A member
York Society of Secu¬

rity Analysts, he was formerly an
executive of the Pennroad Corp.
From 1938 until 1954 he was as¬
sociated with

Oglebay Norton &

The Commercial and Financial Chronicle

(1482)

..Thursday, October 3, 1957

* INDICATES

Securities
Distributors,

Akin

90,000 shares of class A
common
stock, 90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).
Price—Of class A and class B common, $1.50 per share;
and of preferred, $1 per share. Proceeds—To retire bank
loans and for working capital. Office—718 South Bould¬
er, Tulsa, Okla.
Underwriter—May be Walston & Co.,
Tulsa, Okla.
Allstate Commercial Corp.,

Sept.

New York (11/14)
filed 256,300 shares of class A common stock

(par one cent), of which 233,000 shares
for

account

the

account of Ben

Price—$1.50

company

are

and 23,300

be sold
for

the

Degaetano, President of the underwriter.

per

share.

Proceeds—For

to be

used in realty financing activities.
Midland Securities, Inc., New York.

working capital
Underwriter-

Halsey, Stuart & Co. Inc.; Shields & Co.; Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody &
Co. (jointly); Blyth & Co., Inc. and The First Boston
Corp. (jointly); White, Weld & Co. Bids—Expected to be
received up to 9:30 a.m. (PDT)

—

Underwriter—Nohe.

market.. Proceeds—For

investment.

Under¬

writer—Nbne.^Biirton H. Jacksoa is President. Invest¬
Adviser — Securities Cycle Research Corp., New

ment

York.

Feb. 15 filed 50,000,000 shares of common stock

(par one
For working

Price—$2 per share. Proceeds —
capital and general corporate purposes. Office—Dallas,
Tex.

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
of

outstanding. Underwriter—None

Mokafe Corp* of America

Office—701

Monroe

St., Hoboken, N. J.

New

if Anita Cobre U. S. A., Inc., Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.

Drilling Co., Inc.
300,000 shares of capital stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To repay bank loans and other
indebtedness; to parti¬
cipate in the acquisition and exploration of oil proper¬
27

filed

interest

Tex.

assessable

250,000 shares of

non¬

stock.

Price—At par (10 cents per
mining expenses.
Office—1673
Canon Road, Santa Fe, N. M.
Underwriter—None.

share).

common

Proceeds—For

Atlanta Gas Light Co*

(10/15)

Sept. 17 filed $8,000,000 of first mortgage bonds due Oct.
1, 1982. Proceeds—To repay bank loans. Underwriter—
To be determined by competitive
ders: Halsey, Stuart & Co.

Corp.

and

Eastman

bidding. Probable bid¬
Inc.; Equitable Securities
Dillon, Union Securities & Co.

(jointly); The First Boston Corp.; White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Shields & Co.,
Blair & Co. Incorporated. Bids—To be received
up to 11
a.m. (EDT) on Oct.
15 at 90 Broad St., New York, N. Y.
★ Beacon Associates, Wichita, Kansas
Sept. 30 filed 186 limited partnership interests.

$4,000 for each such interest.
of

Price—

Underwriter—None.

Blacksmith Shop Pastries
Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6%% deben¬
tures dated Sept.
16, 1957 and due Sept. 15, 1972 and40,000 shares of capital stock (par $1) to be offered
in units of one $50 debenture and
20 shares of capital
stock.
Price—$90 per unit. Proceeds—To retire mort¬
gage notes and for working capital.
&

Underwriter—Mann

Gould, Salem, Mass.

Bridgeview Towers Associates, Fort Lee, N. J.
July 25 filed $360,000 of participations in
partnership
interests. Price—$10,000 each
participation (minimum).
Proceeds—To buy an apartment
building. Underwriter

—None.

bers:

and

Shields

Stone & Webster Securities
Corp.
received up to 11 a.m.

(EDT)

St., Boston, Mass.
18> filed

Probable bid& Co.
(jointly);

Bids—Expected to

Oct. 23 at 49 Federal

a.m.

(EST)

St., Boston, Mass.

offered in units of $100 of bonds and 10 shares of stock.

Price—$100.50
mortgages

per unit. Proceeds—For purchase of first
to make first mortgage loans and for con¬
business.
Office—Miami Beach, Fla.
Under¬
or

Corp., New York.

Century Acceptance Corp. (10/9-10)
Sept. 9 filed 100,000 shares of cumulative preferred
stock, 70-cent convertible series (par $5). Price—$10 pei
share.

Proceeds—For working capital.
Office—Kansas
City, Mo. Underwriters—Paul C. Kimball & Co., Chi¬
cago, 111.; and McDonald, Evans & Co., Kansas City, Mo.

Chatham Oil Producing Corp.
July 29 (letter of notification) 100,000 shares of 19 cent
non-cumulative convertible first preferred stock
(par
30 cents).

Price—$3 per share. Proceeds—For oil devel¬
opment operations. Office—42 Broadway, New York 4,
N. Y. Underwriter—G. F. Rothschild &
Co., Inc., New

v...'

York, N. Y.
•

Chess Uranium

Corp.
May 14 (letter of notification) 600,000 shares of common
(par $1—Canadian). Price—50 cents/per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of-fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc.,
160 Broadway, New York.
Offering—Expected at any time.

(estimated at $2.12V2

per

ceeds—For exploration. Office—33 Central

City, Panama.

share).

Pro¬

Ave., Panama

Underwriter—None.

Coastal

Ship Corp. (10/15)
Sept. 13 filed $6,000,000 of 6% debentures due Feb. 1,
1968 (with warrants to purchase
80,000 shares of common
stock of

Coastal, of which 60,000 shares are included in
offering and exercisable at $1 per share;
20,000 shares to be privately placed; and warrants

the

public

purchase

Lean

undetermined number of shares of Mc¬

Industries, Inc., class A

stock

common

Go' Inc*
both of New York.

Oct. 30 at 49 Federal

(10/8)

program
311(1 The First

Under-

Boston-Corp

(10/14)
mortgage bonds due Oct.

Proceeds—To repay bank loans.
To be determined
by competitive

deter¬

...

Consolidated Fenimore Iron Mines, Ltd.
June 26 (letter of notification) 150,000 shares of common
stock (par $7); Price—At market
(closing price on To¬

Exchange as of June 14, ,1957 was $1.82 bid
Proceeds^-For mining ex¬
Office—c/o Roy Peers, 9 De Cassoti Rd.^ Mon¬
treal, Canada. Underwriters—Thomason,j Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,
Montreal, Canada.
4 j
and $L85 asked, per share).
penses.

★

Consumers

Power

market,

Co.

(10/17)

Sept. 24 filed $35,156,700 of convertible debentures due
1972 to be offered for subscription
by common stock¬
holders of record Oct.* 16, 1957 on the basis of $100 of
debentures

for each 25 shares of stock
held; rights to
Nov. 1, 1957. Price—To be supplied by amend¬
Proceeds—To repay bank loans and for construc¬

ment.

•

Underwriter—Morgan Stanley & Co., New
.

Screw

Co.

(10/14-16)

Sept. 24 filed 300,000 shares of common stock (par $1).
be supplied by amendments
Proceeds—To¬
gether with funds from sale of $1,500,000 6% bonds (with
Price—To

stock

purchase warrants), to purchase assets of old
Massachusetts corporation and of Hy-Pro Tool Co. Un¬
derwriter—Lee Higginson Corp., Boston and New York.

★ Cooperative Grange League Federation, Inc.
Sept. 27 filed $600,000 of 4% subordinated debentures
due Jan. 1,
1966; 10,000 shares of. 4% cumulative
pre¬
ferred stock par $100* and
150,000 shares of common
stock (par $5). Price—At
principal amount or par value.
Proceeds—To finance inventory
purchases, to make
cap¬

ital loan advances to retail

subsidiaries; to"reduce bank

loans; and for working capital.
Underwriter—None. '
'•

Office —Tthaca, N. Y.
'

it Cormac Photocopy Corp* (10/10-15)
Sept. 24 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per shares ProceedsLFor working capital and
general corporate purposes.
Office—80 Fifth Ave., New
York, N. Y.
Ross, Lyon & Co., Inc., New York.

Underwriter-,

y'
Cougar Mine Development Corp*
(letter of notification) 560,000 shares of com¬
mon stock
(par one ceftt). Price — 50 cents per share.
Proceeds
For diamond
drilling on company's lands,
prospecting expenses, working capital and other corpor¬
.

;

March 15

—

ate purposes.

Office—83 Campfield St.,
Irvington, N. J.
Underwriter—^Roth & Co., Maplewood, N. J.
/
-

Daybreak Uranium, Inc., Opportunity, Wash. '
7 filed 631,925 shares of common stock
(par

May

10
cents). Price— At market (approximately 53 cents
per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.

★ Delaware Fund, Inc.
Sept. 26 filed, (by amendment)
shares of common stock (par $1).

;

1,000,000 additional
Price — At market.

Proceeds—For investment.
DeLuxe

Check

Printers, Inc.

Aug. 28 (letter of notification) 25,000 shares of

common

stock

(par $1) to be offered to employees and
present
stockholders. Price—$11.80 per share. Proceeds—To ac¬

quire

new

machinery, and equipment.

Wheeler St., St. Paul 4, Minn.

Office

530

- -

.Underwriter—None.

date.

the exact number of shares to be established at a later
Price—To be supplied by amendment (expected

Durox of Minnesota,
Inc., Denver, Colo.
Sept. 23 filed 750,000 shares of common stock

Price—$2

100% for debentures). Proceeds—Together with other
funds, to purchase five C-2 freighters to be converted
into trailerships.
Underwriters—Eastman Dillon, Union
Securities

Co.

and

Colotral' Aircraft

White, Weld & Co., both of New
Corp., Sanford, Me.

July 5 filed 248,132 shares of
Price—At

market.

effective Aug. 10.
Columbia

&
.

Gas

stock (par 100).
selling stockholders.
Co., Inc., New York. Statement
common

Proceeds—To

Underwriter—Glick

-•

System, Inc.

(10/3)

Sept. 6 filed $25,000,000 of debentures series I, due 1982.
Proceeds—For

construction

program.

Underwriter—To

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly). Bids—To be received by company up to 11
a.m.
(EDT) on Oct. 3.
Commo»wea'*H

Sept;

California Oregon Power Co.

0 000.000 Of first

Probable bidders: Halsey,

Stanley & Co.; The First
Corp. Bids—TentativelyVrheduled to be received
to 11 a.m. (EDT) on Oct. 22. y
-.

if Coastal Caribbean Oils, Inc.
Sept. 16 (letter of notification) voting trust certificates
for 150,000 shares of common stock
(par 10 cents—U. S.).
Price—At market

Underwriter—To

program.

Boston

Continental

be determined

California O-won Power
Co.

construction

per

share.

and

(par SI).
Proceeds—For capital expenditures

working capital.
Business
Building material.
Underwriter—Ameriban Underwriters, Inc.,'
Englewood,
—

Colo,

•
Empire Sun Vaily Mining Corp. (11/4),:
*
Aug. 9 filed 340,000 shares of common
stock, of which
200,000 shares are to be publicly offered at $3 per share
and 140,000 shares to stockholders of
Sun Valley
Mining
Corp-, at $1 per share. Proceeds—For exploration
and
acquisition of mines; and for working capital. Office—
.

Sept. 16 filed 200,000 shares of common
stock (par $20)
Price—To be supplied by
amendment; Proceeds—To re¬
pay bank loans and for construction

?e?Li6 «Ied
1, 1987.

Office—Kilgore,-

(10/30)

$3,000,000 first

mortgage and collateral
trust bonds due 1987.
Proceeds—To repay bank loans and
to acquire securities of
Montaup Electric Co. Underwriter
—To be determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co
and Shields & Co,
(jointly); Stone & Webster Securities
Corp.; Blair & Co. Incorporated.
Bids—Expected to be
received

the

York.

Brockton Ed:son Co*

Sept.

Underwriter—

bidding.

White, Weld & Co.

Central Mortgage & Investment
Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be

and
I
Brockton Fdison Co. (10/23)
Sept. 18 filed 30,000 shares of cumulative
preferred stock
(par $100). Proceeds—To repay bank loans and
to ac¬

quire securities of Montaup Electric Co.
To be determined
by competitive

25%

stock

Proceeds—For acquisition

building and for improvements.

Y., Inc.

Underwriter—None.

writer—Aetna Securities

ic Arkose Mining Corp.
(letter of notification)

than

risk; and for general working capital.

struction

Sept. 23

assume

three week period.5

mined by competitive.
bidding.]
Stuart & Co. Inc.; Morgan

tion program.
York.

25%

ISSUE

(10/22)
Sept. 20 filed $6*0,000,000 of 30-year first and refunding
mortgage bonds, series N, due 1987. Proceeds—To repay
approximately $43,000,000 of short-term bank -notes and

than

Consolidated Edison Co. of N.

expire

other corporate purposes.

Underwriter—None; sales to be
through corporation and APA, Inc., its subsidiary.

■

ties in joint venture arrangements with other companies
in which the company does not propose to retain more

Apache Oil Corp., Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
made

Underwriter—

if Carter-Jones

Sept.

REVISED

ronto Stock

July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Garden State Securities, Hoboken, N. J.

American Provident Investors Corp.

sent).

Caramba

ITEMS

Commonwealth Income Fund, Inc.
Aug. 8 filed 500,000 shares of common stock (par SI).
Price—$8 per share (for a 21-day period>v -Proceeds—
For investment.
Office—San Francisco, Calif. Offering

for

^Canadian Prospect Ltd., Calgary, Canada
Sept. 27 filed 4,851,810 shares of common stock (par
16% cents) to be offered in exchange for capital stock
of Canadian Export Gas Ltd. on the basis of 2Vz Cana¬
dian Prospect shares for each Canadian Export share,
subject to acceptance by holders of at least 80% of
Canadian Export shares

Inc., New York
May 24 filed 500,000 shares of capital stock (par $1).

—Expected in October for

Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates. Price
At par (in units of $250, $500 and
$1,000). Proceeds — For purchase of mortgage bonds.

ADDITIONS

SINCE
•

Oct. 14.

Canada

American Income Fund,

Price—At

Registration

ders:

Inc.

(letter of notification)

Aug. 2

Now

Underwriter—

bidding. Probable bid¬

stock

filed

—

For

First Boston

of New York.

construction

program.

—

For

..."

public offer, John
V v

Fall River Power Co., Colorado
Springs, Colo.
Aug. 23 filed 500,000 shares of common stock
-

(no par).
note, pur¬

Price—$2

per share. Proceeds—To pay off
chase equipment and
milling facilities, for development

work, and for acquisition ofr additional property, work¬
ing capital and other corporate purposes.
Underwriter

—None.

First International Fire Insurance
Co.

(10/9)

250,000 shares of cumulative preferred
(par $100), Price—To be supplied bv amendment..

Proceeds

The

Fdison Co.

Jerome, Idaho. Underwriter
Sherry Co., New York. /,

Underwriters—

Corp. and Glore, Forgan & Co., both

Aug. 26 (letter of notification) 100,000 shares of
common
stock (par $1).
Price — $3 per share. Proceeds
For
capital and surplus and for first year's deficit.'
Offiee
3395

Bannock

American

St., Englewood, Colo.

Underwriter

Underwriters, Inc., Englewood, Colo.

First National Life

of common,ustock (par $4),
to be offered publicly and
16,500 shares to employees pursuant to stock purchase
options. Price—To public, $12 per share. Proceed^—For
r.<.

None.

Florida Trust, Pompano

Sept. 25 filed 316,814 shares of common stock (par 50
cents) and $2,754,900 6% first mortgage sinking fund
bonds due 1972 to be offered in exchange for the out¬

Proceeds—For

preferred stocx on the following
share (a) AIV2 shares of com¬
mon
stock, or (b) $100 of bonjpef plus IV2 shares of
stock. The offer is conditioned tipon its acceptance by
holders of at least 85% of the 27,549 outstanding pre¬
ferred shares.
Exchange Agent —•" Howard, Weil, La-

New

Underwriter—

corporate purposes.

■

Beach, Fla. :

certificates of beneficial interest in
the Trust.
Price—$1,000 per certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell

March

filed. 850

lands and every character oi. real
vUnderwriter—None.
y;^ ■
and convey

Forest.

standing

property,
;: -V*

Laboratories, Inc.

of capital stock (psu1 10
Proceeds—For sales pro¬
motion of company's products, working capital, addi¬
tional inventory and accounts receivable, for research
w and development and for other general corporate pur¬
iy poses. Office—Brooklyn, N. Y. Underwriter—Mortimer

Hammett

Sept. 12 filed 9,365 shares of 5% preferred stock. Price—
At par ($100 per share). Proceeds—For working capital.
Business—School supplies.
Underwriter—None.
Sales
are to be made through directors, officers and employees

& Co., Inc.,

preferred stockholders.

•

York.;

426,988 shares of common

General Automatics Corp.,?

A stock (no par)

Atlanta, Ga.

shares of common
Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls; and for other corporate purposes. Address—c/o Positronic Corpv 2572 Ridgemore Road, N. W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,

^v^:

Ga/^4

General Credit, Inc., Washington, D. C.
$2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
For expansion and working capital. Underwriter—None
named.
Offering to be made through selected dealers
Application* is still pending with SEC.
;
Aug. 17, 1956 filed

wif

\T-1

♦.

«&,

—

General Parking,

Inc.

•.

(letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds^-To re¬
tire outstanding debt; for expansion of subsidiary cor¬
June 18

.^*4

for working: capital. Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
poration

f."

(Bide

Office—216 E. Monroe St., Springfield, 111.

ISSUE

May 24 filed

Corp., New York

1,480,787 shares of common stock

(par $10)

and 170,000 shares of 5.28% convertible preferred stock
(par $50)a which were offered in exchange for common
and preferred stocks of Peninsular Telephone Co. on the
/basis of 1.3 shares of General common for each share

;

General
preferred share for each share, of Peninsular $1 pre,Vferred, $1.30 preferred and $1.32 preferred. Offer to pre¬
ferred stockholders expired on Aug. 14 and that to com¬
mon
stockholders of Peninsular extended to Oct. 14.
Dealer-Managers—Paine, Webber, Jackson & Curtis and

Peninsular common,

Stone & Webster

/Debenture!

Securities Corp.

(Bids 11 a.m. EDT) $3,000,000

(Friday)

(Bids

•

(Monday)

J October 7
Taylor

(Scott

$300,000

Inc.)

Co.,

(Merrill

$17,500,000

& Beane)

Fenner

Pierce,

Lynch,

(Offering

Preferred

Commonwealth Edison Co
Corp. and Glore, Forgan &

Co.) $25,000,000

100,000 shares

(Bids

Cormac

10-year 6%
of one $50
Price—$100

of common

unit. Proceeds—To discharge short term obligations;
purchase merchandise inventory; and for working capital. Office— 1022 18st St., N. W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.

Bonds

California

(Bids

9:30

a.m.

PDT) $10,000,000

Common

Continental Screw Co.—
(Lee Higginson Corp.)
Nuclear Science &

300,000 shares

a.m.

Corp.

.r.

outstanding debt and for working capital. Office—
225 East 46th St., New York, N. Y. Underwriter—A. G.
Bellin Securities Corp., 52 Broadway, New York, N. Y.
Great Lakes

Common

—

300,000 shares

Pittsburgh & Lake Erie RR
Equip.
■/•-./ - (Bids to be invited) $4,950,000
Roach

(S. D. Fuller & Co.)

Siegler Corp

Staats & Co.)

Southern New England

Trust Ctfs.

filed 779,393 shares of common

stock (par 50

Price—$1.25 per share. Proceeds—For explocosts, improvements, expansion, etc. Office—Lc$

Angeles, Calif.
St. Louis, Mo.
Guardian

Consumers Power
(Offering to common
Morgan

Baltimore, Md.

stock, of which
200,000 shares are to be publicly offered and the remaining 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant
to organizers, incorporators, management, and/or direc-

tors.

Price—$10 per share.

ital and

Proceeds—For working cap¬

general corporate purposes.

Underwriter—None.

EDT)

a.m.

$8,000,000

November

(Blyth & Co.,

Bonds

Federation Bank & Trust
(Offering

Common

'Bide to be Invited)

December

Chesapeake & Potomac
Maryland
(Bids

n.m.

Baltimore & Ohio
Bids

(Tuesday)

Consolidated Edison Co. of
11

275,000 shares

New York, Inc.—Bond!

EDT)

$60,000,000

(Monday)

a.m.

EST)

Suburban

Debentures

(Tuesday)

EST

t20.000.000

Bond!

(Wednesday)

RR
to

Electric

$30,000,000

Electric Co
am

December 11

Common
Co.) approximately

October 22
(ttiris

Bids

Bonds

$20,000,000

Telephone Co. of

Decembe^lO
Indiana & Michigan

(Monday)

Industries, Inc

(William R. Staats &

11:30

Bonds

(Tuesday)

December 3

underwriting) $2,496,900

State Telephone Co
Common
(Offering to stockholders—no underwriting) $490,000
,

Darco

(Wednesday)

November 20

Intra

October 21

EST) $25,000,000

a-m.

Virginia Electric & Power Co

(Friday)

stockholders—no

Houston Lighting & Power Co
(Bids to be invited) $30,000,000 to $40,000,000

Co > <35.156.760

Common
shares

Bonds

(Bide

Electric Light & Power Co.. .Common
Inc. and The First Boston Corp.) 200,000 shares
October

(Tuesday)

(Bids to be invited) 451,894

Co
—Debenture!
stockholders—to be underwritten by

Stanley

Bonds

$3,500,000

Ohio Power Co

(Thursday)

$40,000,000

to be Invited)

Middle South Utilities Inc

Tucson Gas,

Aug. 16 filed 300,000 shares of common

;

Underwriter—Dempsey-Tegeler & Co.,
Offering—Temporarily postponed.

Insurance Corp.,

(Bids

Common

(Wednesday)

Pennsylvania Power Co.

Debentures

Mystic Valley Gas Co.

Co.
Debentures
Jackson & Curtis; Butcher & Sherrerd; and
Townsend, Dabney & Tyson) 400,000 shares

(Bids

(Bids to be Invited)

—Common

underwriters) 1,400.000 shares

Bonds
$2,000,000

'Bids to be invited>

Michigan Bell Telephone Co

Webber,

October

(Monday)

V November 18
Lawrence Gas Co

300.000 shares

Telephone Co

(Offering to stockholders—no

privilege.
ration

Common
Inc.) $384,450

Securities,

(Midland

$1,125,000
-

(William

October

cents) to be offered for subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share of
Oil & Chemical stock held with an oversubscription

(Thursday)

Allstate Commercial Corp

Common

Productions.—I

(Hal)

Natural Gas Corp.

July

$9,000,000

November 14

$6,000,000

(Paine,

pay

•*

(Monday)

Southern Union Gas Co
.Debentures
(Snow, Sweeney & Co., Inc. and A. C. Allyn & Co., Inc.)

Coastal Ship Corp
——Debentures
(Eastman Dillon, Union Securities & Co. and White, Weld & Co.)

Inc

$12,000,000

((Bide noon EST)

November 11

EDT) $8,000,000

Bonds

Gas & Electric Co

Bonds

Atlanta Gas Light Co
(Bids

San Diego

(Tuesday)

October 15

$20,000,000

(Thursday)

November

Com.

Bond!

Co_

(Bids to be invited)

Ulrich Manufacturing Co
Debentures &
(White & Co.) $600,000 debentures and 30,000 common

Bonds

—

EST) $25,000,000

a.m.

Electric

Merrimack-Essex

100,000 shares

(Hayden Stone & Co.)

(Wednesday)

Dayton Power & Light Co

..Common

Engineering Corp

.Common

Co.) $200,000

November 6

Bonds

Oregon Power Co

'/■;

(Monday)

Mining Corp

Empire Sun Valley

(John Sherry

July 22 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—To
'/

Equip. Trust Ctfs.
$6,000,000

(Bids noon EST)

November 4

(Monday)

October 14

Preferred

about $7,500,000

Southern Pacific Co

Walworth
Giant Petroleum

(Thursday)'

October 31

.Common
$300,000

<fc Co., Inc.)

to be invited) $6,000,000

(Bids

Bonds

(Blyth & Co., Inc.)

Rotor Tool Co.——.
-Common
(Offering to stockholders—no underwriting) 1,278 shares

Toledo Terminal

$3,000,000

Gas & Electric Co

San Diego

Photocopy" Corp
(Ross, Lyon

a.m. EST)

(Bids 11
_

(Thursday)

October

$2,800,000

$2,745,000

EDT)

noon

Equip. Trust Ctfs.

be invited)

Brockton Edison Co

Equip. Trust Ctfs.
(Bids

(Wednesday)

October

Baltimore & Ohio RR

First

Wabash RR.

..Common

(Bids 11 a.m. EDT) 3,600

common stockholders—underwritten
Boston Corp.) $2,809,600

The

$250,000,000

be invited)

(Bids to

Johnson Service Co

Preferred

Rockland Light & Power Co
(Offering

(Tuesday)

& Telegraph Co—Debenture!

American Telephone

Common

Reading Tube Corp—
(Emanuel Deetjen & Co.)

Equip. Trust Ctfs.
$4,000,000

(Bids noon EST)

October 29

Century Acceptance Corp
Preferred
(Paul C. Kimball & Co. and McDonald, Evans & Co.) $1,000,000
(The First Boston

(Monday)

Norfolk & Western Ry

(Wednesday)

October

underwriting) 3,533 shares

to stockholders—no

October 28

California Oregon Power Co
Common
(Blyth & Co., Inc. and The First Boston Corp.) 200,000 shares
;

—Common

Woodbury Telephone

(Tuesday)

October 8

(Friday)

October 25

Debentures

National Cylinder Gas Co

Common

Co.

(Reynolds & Co., Inc.) 400,000

.Common

Biochemicals, Inc..

National

99,195 shares

Corp.)

Brothers

Williams

per

EDT) $8,000,000

a.m.

Taylor Instrument Companies
Common
(Offering to stockholders—underwritten by The First Boston

—...

(Wertheim & Co.)

(par 10 cents); to be offered in unfits
debenture and 20 shares of "common stock.

Bonds

New Hampshire

Universal Winding Co
.
Debentures
(Offering to stockholders—no underwriting) $300,000

Foster Grant Co.,

stock

Preferred

Brockton Edison

Public Service Co. of New Hampshire
Common
(Kidder, Peabody & Co. and Blyth & Co., Inc.) 262,890 shares

and one-half share of

Aug. 8 (letter of notification) $100,000 of
convertible debentures and 120,000 shares
.■*.

(Wednesday)

October 23

(Kesselman & Co.) $300,000

Craft Corp.

Genie

page

CALENDAR

(Bids

Common

Strato-Missiles, Inc.

and

General Telephone

which Charles F. Martin is also

Inc., Des Moines, la., of

$25,000,000

EDT)

a.m.

October 4

May 23 (letter of notification) 100,000
stock (par $1). Price—$2 per share.

Distrib¬

Manager—Horace Mann Investors,

utor and Investment

Continued

System, Inc..

Gas

Columbia

New York

(par $1). Pro¬
United States
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and Glore, Forgan & Co. (jointly). Bids — Had been
scheduled to be received up to 3:45 p.m. (EDT) on May
13 at Room 654. 101 Indiana Ave., N. W., Washington 25,
D. C., but bidding has been postponed.

(par $1).

Proceeds—For investment.

market.

Public Service Co. of

1,537,500 shares of Common B stock
ceeds—To the Attorney General of the

Price—At

Fund, Inc., Springfield, III.

100,000 shares of capital sto«k

filed

(Thursday)

October 3

and

President.

General Aniline & Film Corp.,

June

600,000 shares of common

NEW

Jan. 14 fried

Underwriter—Benjamin

working capital, etc.
Co., Houston, Tex.

ventory,

Wertheim. & Co., New

stock.

Hampshire Nickel Mines Ltd.
Aug. 23 (letter of notification)

Grant Co.,.inc.,

(10/15)

*>*:
«

Houston, Texas

(letter of notification) 100,000 shares of common
Price—At par ($3 per share). Proceeds—For In¬

Feb. 27

~New York.

Leominster, Mass.
^"V
£ Sept. 20 filed 300,000. shares of common stock (par $1).
Price—To.Jbe supplied by amendment. Proceeds — For
expansion program and working capital. Underwriter—
Foster

preferential rights of existing

subject to

company,

York.

Holy Land Import Corp.,

Horace Mann

Cambridge, Mass.

Co.,

L.)

(J.

Office — Suite 607, 320 Bay St.,
Underwriter — H. J. Cooney & Co.,

purposes.

Toronto, Canada.

Orleans, La.

bouisse, Friedrichs & Co., New

28 filed 200,000 shares
cents); Price—$2.50 per share.

B. Burnside

prior

$4.50

corporate

basis: For each preferred

Aug.

f v ,«■

(par $1-Canadian). Price — 50 cents per share.
development of property and for general

stock

Inc.

Gulf States Land & Industries,

Insurance Co.,. Phoenix, Ariz.

'July 29 filed 106,500 shares
of which 90;000 shares are

expansion and other

(1483)

The Commercial and Financial Chronicle

Number 5678

Volume 186

be invited)

Equip. Trust Ctfs.
$2,600,000

Co.

(Bide to be Invited)

$*.*00,000

Bonds

✓

(1484)

The Commercial and Financial Chronicle

Continued from page 55

remaining 42.500 shares are to b& Offered to directors,
employees and agents of the company for a period of
14 days at $5.62*2
per share.
Price—$6.25 to public.
Proceeds—To increase capital and surplus. Underwriter
—First Maine Corp., Portland, Me. Burton M. Cross,
President, will purchase any shares not subscribed for

Hudson's

Bay Oil & Oas Co. Ltd.
Aug. 27 filed 1,744,592 shares ol capital stock (par $2.50)
being offered for subscription by stockholders of Con¬
tinental Oil Co. and by holders of ordinary shares of
TThe Governor and Company of Adventurers of England
Trading into Hudson's Bay ("Hudson's Bay Co."). The
offering to stockholders of Continental Oil Co. is at
the rate of one share for each 15 shares of Continental

the

Gas

rate

stock

1 1/6

each

for

Hudson's

1957; rights will expire on November 1, 1957.
price—$11 per share (Canadian funds). Proceeds—For
development and exploration costs. Office — Calgary,
Alta., Canada. Underwriter—None. Continental Oil and
Hudson's Bay Co. have agreed to purchase 75% and
25% respectively, of the shares which shall not be,,sub¬
scribed for by the stockholders of the two companies.
Financial Adviser—Morgan Stanley & Co., New York.

Inc., Kellogg, Idaho

Sept. 30 filed $25,000,000 first mortgage bonds due 1987.
Proceeds—To repay bank loans and for construction
pro¬
gram.
Underwriter—To be determined by competitive

Spokane, Wash., and Kellogg,

Mississippi Valley Portland Cement Co.
1956 filed 1,600,000 shares of capital stock (no
par) of which 708,511 shares are subject to an offer of
rescission.

Price—$3 per share. Proceeds—For comple¬
tion of plant, provide for general creditors and for work¬
ing capital. Office—Jackson, Miss. Underwriter—None,
offering to be made through company's own agents.
•

Telephone £p., Hutchinson, Minn.
1,697 shares of common
be offered for subscription by common stock¬
the

basis

new

one

for

(par $1)
six-year stock purchase warrants to buy an addi¬
tional 196,994 shares of common stock being offered for
subscription by common stockholders in units of one
and

five

each

chares held

as of Aug. 20, 1957.
Price—At par ($10 per
Proceeds—For expansion of plant. Underwriter

chare).
—None.

Inland Western Loan & Finance Corp.
Aug. 16 filed 2,500,000 shares of class A non-voting com¬
mon stock
(par $1) to be offered for subscription by
holders of special participation life or endowment con¬
tracts issued by Commercial Life Insurance Co. Price—■
$1 .50 per share. Proceeds—For operating capital for two
eubsidiaries and to finance expansion program. OfficePhoenix, Ariz. Underwriter—None.

★ Intra State Telephone Co. (10/18)
Sept. 27 filed 4,900 shares of common stock to be offered
for subscription by common stockholders on the basis
©f

one

new

18, 1957.

share for each two shares held of record Oct.

Price—At

reduce bank loans.

par

($100

share).

per

Proceeds—To

Office—Galesburg, 111.

Underwriter

—None.

^ Israel-Mediterranean Petroleum, Inc. of Panama
Sept. 27 filed voting trustees covering 1,000,000 shares of
stock

common

the American

Price—At the market

(par one cent).

Moiybdenum Corp. of America
14 filed 196,994 shares of common stock

Aug.

(letter of notification)

holders

share and

one

warrant for each

shares held

seven

Sept. 27, 1957; rights to expire on Oct. 18, 1957.
$21.25 per unit. The stock purchase warrants
exercisable
program.

$30

Price—
will

share. Proceeds—For expansion
Office—Grant Bldg., Pittsburgh, Pa. Under¬
per

writer—None.
Monticello

Associates, Inc.

Feb. 18 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds — For

capital

expenditures,

including construction of motel,
station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.
roadside restaurant and gas

Mortgage Clubs of America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit
to the company. Proceeds—To be invested in small loans
secured by second mortgage on home properties. Office
—Springfield, Mass. Underwriter—None. Charles Hersh-

writer—None.

of investment contracts and

Isthmus Steamship & Salvage Co.,
Miami, Fla.
(letter of notification) 300,000 shares of com¬
stock (par 10 cents).

mon

Price—$1 per share. Proceeds
ship and for working capital. Under¬
writer—Anderson Cook Co., Inc., Palm
Beach, Fla.

—To purchase

Janaf, Inc., Washington, D. C.
July 30 filed $10,000,000 of 542-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
€tock

(par 20 cents) to be offered
debenture and 10 shares of stock,

in units of

share of stock.

one

end for

working capital, etc. Underwriter—None.

Jefferson

Aug. 27 filed

Lake
an

Sulphur Co.

undetermined number of shares of

stock (par $1),
chares, to be offered

mon

holders

the

may be between 143,000 to
for subscription by common

basis

one

new

for

com¬

150,000
stock¬

each

five

chares held.

Price—To be supplied by amendment. Pro¬
ceeds—To increase working
capital and for development
of new projects in the United
States and Canada. Under¬

writers—Hornblower

Weeks, New York. N. Y.; and
Robert Garrett &
Sons, Baltimore, Md, Offering—Post¬
poned due to market conditions.
,
"★ Ketchum & Co., Inc., New York
City
Sept. 27 filed 210,000 shares of common stock
©f which 43,000 shares are
to be offered for
the company and 167.C00
shares for

principal and interest on second mortgage at $3,000 per
mortgage. Proceeds—To buy inventory and for working

(par $1),

account of

—

State

(payable

cash

Israel

certain

limits

Israel Independence Issue
Bonds and State
Development Issue feonds). Proceeds
For

Proceeds—For

programs.

offered

exchange

*8^

debentures
for

Madison

par

**rice—100%

per

share).

preferred

stock.

Mutual Investors Corp. of New York
May 17 (letter of notification) 295,000 shares of

(par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36,

first
stock

amount.

is President.

State¬

which
19a

53>500 sharesvof capital stock

11,000 shares, at $5.31*4
for

per

share,

subscription by stockholders

at the rate of

one new

Stuart

—

Nassau Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock. Price—At
market.

Proceeds—For

investment.

Office—10

St., Princeton, N. J. Investment Advisor
Hoisington, Inc., same address.
•

—

Nassau

Harland W

Nation

Biochemicals, Inc. (10/7-11)
Sept. 10 (letter of notification) 100,000 shares of
stock (par 10 cents).
—For cost of plant and
mon

•

Price—$3

Underwriter—Scott

National Cylinder Gas Co.

per

share.

com¬

Proceeds

Taylor &

Co.,

Inc.,

(10/7-10)

Aug. 28 filed $17,500,000 of subordinated debentures due
Sept. 1, 1977 (convertible on or before Sept. 1, 1967).
To be supplied by amendment.
Proceeds
For
expansion and working capital. Underwriter — Merrill
Lynch, Pierce, Fenner & Beane, New York.
Price

—

National Lithium
Feb. 19 filed

tion

Corp., New York
3,120,000 shares of common stock (par

Price—$1.25

per

share.

Proceeds—For

one

acquisi¬

properties; for

work

National

Sept.
ord

(par $3), of

are

of record

of¬

July 1,

share for each share held. The

Probable bidders: Halsey, Stuart & Co. Inc.;
Boston Corp.; Blyth &
Co., Inc.; Eastman,
Union Securities & Co. and Salomon Bros. &
Hutzler (jointly). Bids—Expected to be received
up to
11 a.m. (EST) on Nov. 19.
'
First

Dillon,

■

Old American

Life

Co., Seattle, Wash.
July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in
units

one

common

and

three

class^ shares.

Price—$260 per unit. Proceeds — For worlong\capital
and other corporate purposes.
Underwriter—None.
★ Palestine Economic Corp.. Ne v York
J
Sept. 26 filed 130,000 shares of common stock. Price—
At par ($25 per share). Proceeds—For
participation in
further development of Israel

provements;

for

extension

industry; for capital im¬

cooperative

other

and

credit; for financing of export to Israel; for
investment in stock of two companies; and for
working
capital and other corporate purposes.
Underwriter—
None.

★ Pan-Israel Oil Co., Panama
Sept. 27 filed voting trust certificates covering 1,000,000

shares of
ket

common

stock

the American

exploratory

(par

one

drilling

and

Price—At

cent).

Stock Exchange.

Proceeds

development

For

presently

licensed acreage and

for * acquisition of additional
Underwriter—None.

age.

mar¬

—

acre¬

Pennsylvania Power Co. (10/16)
Sept. 19 filed $8,000,000 of first mortgage bonds due
1987.
Proceeds
To repay
outstanding bank loans of
$4,500,000 and for construction program: Underwriter—
—

determined

by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and Dean
Witter & Co. (jointly); Lehman
Brothers; Kidder, Peabody & Co.; Kuhn, Loeb & Co. Bids—Expected to be
received 11
wealth

a.m.

(EDT)

Oct. 16 at office of Common*

Services, Inc., 300 Park Ave., New York 22, N. Y,

★

Public Service Co. of New
Hampshire (10/23)
Sept. 24 filed $8,000,000 of first mortgage bonds, series
J, due 1987. Proceeds
To repay bank loans and for
—

construction

program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp. and Coffin & Burr,
Inc.
(jointly); Equitable Securities Corp.; Lehman
Brothers; White, Weld & Co. Bids—To be received
up.
to 11 a.m. (EDT) on Oct. 23 at
Boston, Mass.

★ Public Service Co. of New Hampshire (19/23) -•
1 filed 262,890 shares of common stock
(par $5).

Oct.

Price—To

gether with

supplied

other

by amendment.
Proceeds—To¬
funds, to repay bank loans and for

construction

program.
& Co. and Blyth &
Co.,

Underwriters—Kidder, Peabody
Inc., both of New York.

★ Putnam Growth Fund, Boston. Mass.
Oct.

Fund.

filed

500,000 shares of beneficial interest in the

Price

At market.

—

Putnam

Proceeds

Fund

—

For investment.

Distributors, Inc., Boston.

★

Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock
(par $l)
of which 200,000 shares are to be offered to
public
20,000 shares issued to underwriter. Price—$5 per
share.
Proceeds—To retire $125,000 of
outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union
Produc¬
tions, Inc.; and for working capital.
Business—Tele¬
vision releases

York.

Underwriters—"P*
T,
Aaron
Statement has been withdrawn.

Co., New

—

cent).

mon

(11/19)

bidding.

The

Mass.

inventory and for general cor¬
Office—Room 202 Houston Title Bldg.,

porate purposes.

Houston, Tex.

Power Co.

Underwriter

the

ore testing program; for assess¬
Yellowknife properties; and for cost

Valve &

Mawi»fae+ur»n#r Co.

(letter of notification) f42,620 shares of com¬
(par $1) to be offered to stockholders of rec¬
Sept. 20, 1957 at the rate of IV2 shares for each
stock

Proceeds

common
—

stock

owned.

enlarge plant

Price

and

—$2

per

share.

for

working capital.
Office—3101 Liberty Ave.,
Pittsburgh, Pa. Underwriter
New Haven Water
Co., New Haven, Conn.
Aug. 9 filed 60,000 shares of common stock
being offered
for subscription by common stockholders
of record Sept.
16. 1957, on the basis of one new
share for each three

Ma'ne Insurance
Co., Portland, Me.

fered

Underwriter

Wis.

of common stock. Price—At
Proceeds—For working
capital, etc.

Henry Behnke

N. Y.

Securities Corp., New York

—None.

Madison,

effective Sept. 20.

common

stock

it a concentration plant, mining
equipment, etc. Underwriter—Gearhart & Otis, Inc., New York. Statement ex¬
pected to be amended.

Underwriter-

Inc., Allentown, Pa.
Improvement Corp.,

Under writer—None.
ment

of principal

T/ir?rt^e^ ^0,000 shares
($10

1972

outstanding

Proceeds—To redeem preferred
Warren W. \ork & Co.,
•

due

Haupt & Co.,

Office—Haifa, Israel. Underwriter—None.
Lehigh Spinning Co.,
Allentown, Pa.
Aug. 16 (letter of
notification) $245,000 of 6% sub¬
convertible

Sponsor—Ira

ment

subsidiaries in connection with
their expansion

ordinated

investment.

New York.

ad¬

—

vances to

Miami National Bank Bldg., Biscayne

Municipal Investment Trust Fund, Inc. (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.

"Koor"

Industries & Crafts
Co., Ltd.
Aug. 26 filed 30,000 shares of 6Vz % cumulative
partici¬
pating preferred stock (par XL
180—$100). Price—$100
share

—

New York, N. Y.

selling stockholders.
Price—To be supplied
by amendment. Proceeds
For
general corporate purposes,
including carrying of larger
inventories. Business—Wholesale
drugs. Underwriter—
"To be named by amendment.
•.

per

Office

Blvd., Miami, Fla. Underwriter—None.

$1,000

or a $100 debenture
Price—Par for debenture, plus
$2 pejj share for each 10 shares of Stock. Proceeds—For
construction-of a shopping center and other
capital im¬
provements; for retirement of present preferred shares;

end

it Mortgage Investment Foundation, Inc.
Sept. 23 (letter of notification) an undetermined number
certificates of guarantee of

capital.

■

★ Ohio

bidders:

is President.

man

May 21

Underwriters—John¬

Lane, Space Corp. and Varnedoe, Chisholm & Co.,
both of Savannah, Ga.
son,

banking

Exchange. Proceeds—For explora¬
tory drilling and development of presently licensed acre¬
age and for acquisition of additional acreage.
Under¬

Stock

—To increase capital and surplus.

Dec. 26,

Hutchinson
etock to

notification) 26,932 shares of com¬
(par $2.50), of which 17,932 shares are to be
present stockholders and 9,000 shares are to
be offered to employees. Price—$11 per share. Proceeds

Price—At

Sept. 3,

Aug. 21

(letter of

stock

Standard Securities Corp.,
Idaho.

&
of record

shares held

ordinary

Oglethorpe Life Insurance Co., Savannah, Ga.
Sept.

mon

(letter of notification) 800,000 shares of common
par (17*/2 cents per share).
Proceeds
—For mining expenses.
Office—Sidney Bldg., Kellogg.
Tdaho, Malcolm C. Brown is President. Underwriterstock.

Oil

Bay

Underwriter—Hayden, Stone & Co., New York.

June 3

Oil stock held of record Sept. 16, 1957, while the offering
to holders of ordinary shares of Hudson's Bay Co. Ltd.
is

prepay indebtedness to Norden-Ketay Corp., to
purchase additional equipment and for working capital.

offered

Mascot Mines,

Thursday, October 3, 1957

—To

stockholders.

....

held; rights to expire on Oct. 10. Price—At par
($50 per share). Proceeds—To reduce bank loans. Un¬
derwriter—None.
A

Fmsrineering Corp. (10/14-18)
Sept. 20 filed 100,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds

Ramapo Uranium Corp. (New York)
Aug. 13 filed 125,000 shares of common stock (par one
cent): Price—$5 per share. Proceeds—For
exploration
and development of properties and
completion of a ura¬
nium

concentrating pilor mill. Office—295 Madison
Ave.,
Underwriter—None.

New York 17, N. Y.

Rapid Electrotvpe Co., Cincinnati, Ohio
Sept. 20 filed $656,250 of 5*2% two-year
debentures due
May 1, 1958; and 136,485 shares of common
stock, of
which 37,840 shares were issued
upon
conversion of
debentures and 40,000 shares on exercise of
option, and
58,645 shares are issuable in conversion of the
afore¬
mentioned $656,250 debentures. Proceeds
To

selling

—

security holders.
to

sold

Underwriter—None. Said securities

holders thereof

the

open

market

are
or

otherwise.
★

Reading Tube Corp. (10/9)
Aug. 30 filed 155,014 shares of common stock
(par $1),
subsequently amended and reduced to 100,000 shares.
Price
To be supplied
by amendment. Proceeds
To
repay bank loans and for working capital.
Underwriter
—Emanuel, Deetjen & Co., New York.
—

-r-

Roach

(Hal) Productions (10/15)
Aug. 8 filed 375,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For expansion of
duction of filmed television commercials and
for
capital. Business—Produces films for

—City, Calif.
New York.

pro¬

working

television. Office
Underwriter—S. D. Fuller & Co.
j

Roanoke Gas Co.

•

Sept. 18 (letter of notification) 19,160 shares of common
stock (par $5) to be offered to commori stockholders on
the basis of one share for each five shares held; rights
expire on Oct. 31, 1957. Price—$15 per share. Pro¬
For construction program.
Office—125 West

ceeds

—

Underwriter—None.

Va.

Church Ave., Roanake,

Light & Power Co.

Rockiand

held; rights to subscribe on Oct. 23, 1957. - Priee—-$100
per share. Proceeds—To reduce bank loans. Underwriter
—The First Boston Corp., New York.
^Y^;/ * ">;■''■"•'Y'
*

Inc. .v/.\;

Rose Records,

July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1 per share). Proceeds—For work¬

ing capital. Office—705 South Husband St., Stillwater,
Okla. Underwriter—Richard B. Burns Securities Agency,
Stillwater, Okla.

if Rotor Tool Co. (10/10)
J
Sept. 25 (letter of notification) 1,278( shares of common
stock (par $1) to be offered to stoc^hokjers^of record on
Oct. 10, 1957 on the basis of one new share for 30 shares
held; rights to expire Nov. 9, 1957. Price — $38.50 per
share. Proceeds—For general corporate purposes. Office
•—26300 Lakeland

Blvd., Cleveland, Ohio.

Rule

Underwriter—

■' Y,-"/;./

None.

7'./

Construction Co.

(C. F.)

Sept. 13 filed 127,289 shares of common stock (par $10).
Price—$13 per share. Proceeds—To retire outstanding
loans and for working capital and investment in addi¬
tional

equipment.

—None.

Office—Nashville, Tenn.

Underwriter

Schering Corp., Bloomfield, N. J.

shares of 5% cumulative con¬
(par $30) a-nd 418,475 shares of
common
stock (par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be merged
with Schering Corp. effective Sept. 19, 1957) on the
278,983

filed

vertible preferred stock

share of preferred stock and

one

common
mon

Underwriter—None.

stock for each White class A or

share held.

IY2 shares of
class B com¬

Underwriter—None.

■

(by amendment)

Sep' /25 filed

an,

additional 250,000
Proceeds—For

if Scudder, Stevens & Clark Fund, Inc.
Sept. 25 filed (by amendment) an additional 150,000
shares of capital stock.
Price—At market. Proceeds—

Oct. 1 filed 99,195 shares of common stock
offered

Seminole
24

Oil

Gas

Corp., Tulsa,

Okla.

(letter of notification)

275,000 shares of com¬
mon stock
(par five cents). Price—75 cents per share.
Proceeds
For development of oil and gas properties.
Underwriter—Albert
& Co.,
Inc., New York, N. Y.
Offering—Withdrawn on Sept. 1, 1957.
—

Oil

Shacron

Corp.

Sept. 11 (letter of notification) 40,000 shares of common
((par $1) to be offered for subscription by stock¬
holders; then to public. Price—$1.25 per share to stock¬
holders; $1.37^ to public. Proceeds—For expenses in¬
cidental to drilling of oil wells.
Office—Suite 14, 1500

stock

Massachusetts

Ave., N.

W., Washington, D. C.

Texam Oil Corp., San

Texas

Steadman

Elmo Ave.,

•

Tucson Gas,

Electric Light & Power Co. (10/17)

Sept. 25 filed 200,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬

bank loans and for construction program. Under¬
writers—Blyth & Co., Inc., San Francisco and New York;
and The First Boston Corp., New York.
pay

•

Ulrich

Manufacturing Co., Roanoke, III.

(10/14-18)

filed $600,000 of 6% sinking fund debentures
and 30,000 shares of class A common stock (par $1) to
be offered in units of $500 of debentures and 25 shares of
stock. Price—To be supplied by amendment. Proceeds!—
To reduce bank loans, to repay all or part of an out¬

additional work¬
& Co., St. Louis, Mo.,

standing 5% term loan and/or provide
ing capital. Underwriter—White
on a best-efforts basis.
Union of

South Africa

filed $15,000,000 10-year external loan bonds
due Oct. 1, 1967. Price—To be supplied by amendment.
Proceeds—For transportation development program. Un¬
derwriter-—Dillon, Read & Co. Inc., New York. Offering
12

Sept.

—Postponed temporarily.

if United States Coconut Fiber

Corp.

Sept. 30 filed 735,000 shares of common

stock (par $1).

Proceeds—For expansion program
and other corporate purposes. Office—Washington, D. C.
Underwriter — Southeastern Securities Corp., New York.

Price—$4 per share.

if Universal Winding Co. (10/41
(letter of notification) $300,000 of 5V&% sub¬
ordinate convertible debentures to be offered for sub¬

Sept. 25

scription by common stockholders of record Oct. 4, 1957,
on the basis of $100 of debentures for each
100 shares
of stock held.
Price—At par. Proceeds—For working

share for each four shares

capital. Office — 1655 Elmwood
Underwriter—None.

.....

Ave., Cranston, R. I.

and sell
stock, following spin-off by

reported company plans to issue

to $12,500,000 common
Eastern Aviation,

California

Land-Air, Inc. and Air

Inc. of its subsidiaries,
Carrier Service Corp. into Air¬

Inc., a new company.
Podesta & Co., Chicago, III.
All States Freight,

June 21 it was

Underwriter—Cruttenden,

Incorporated, Akron, O.

announced company plans to

offer public¬

Uranium Corp. of America,

bert Griswold of

Portland, Ore., is President.

• Walworth Co., New
■

York City (10/15)

Sept. 25 filed $8,000,000 of 6% convertible subordinated
debentures due 1979. Pricer-^To be supplied by amend¬
ment.

and

ly $2,250,000 of 15-year

Proceeds—To repay bank loans

general corporate purposes..

warrants).

& Telegraph Go. (10/29)
announced that company plans to issue
$250,000,000 of debentures to be dated Nov. 1,
1957 and to mature on Nov. 1, 1983. Proceeds—For im¬
provement and expansion of system. Underwriter—To
be determined by competitive bidding. Probable bidders:
Morgan Stanley & Co.; The First Boston Corp. and Halsey, Stuart & Co. Inc. (jointly).
Bids—Expected to1 be
American Telephone

July 17 it was
and sell

opened on Oct. 29.

Y.¬

April 9, Bayard L. England, President, announced that
this year the company will probably issue about

later

debentures. Proceeds—For con¬
Underwriter—May be determined by
competitive bidding. Probable bidders: Kalsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., Ame&can Securities Corp.
and Wood Struthers & Co. (jointly); White, Weld & Co.
and Shields & Co. (jointly); The First Boston Corp. and
Drexel & Co. (jointly); Eastman Dillon, Unipn Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
K>aitimore & Ohio RR. (10/30)
(12/11)
Bids are expected to be received by the company • on
Oct. 30 for the purchase from it of $2,600,000 equipment
trust certificates, to be followed by an additional $2,»600,000 on Dec. 11. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Ilutzler.
$5,000,000 of convertible
struction program.

Byers

(A. M.) Co.

and for expansion

Underwriters—Paine,

proposal to authorize a
cumulative preference
stock (par $100) and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection with
Its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
May 7 stockholders approved a
new
class of 100,000 shares of

Tire & Rubber

Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬

Fund, Inc.

Inc.

July 9 it was

Atlantic City Electric Co.

Sept. 24

.•

development.
Office — 4932 St.
Bethesda 14, Md. Underwriter—Whitney &
C.

Co., Inc., Washington, D.

common stock (par $1)
offered in connection with merger into this Fund
of Fund of Fortune, Inc., Fortune II, Inc., Fortune III,

York.

New

Prospective Offerings
Aircraft,

stock

proprietary

and

ment

to be

Inc.,

6% debentures (with common
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per
Tripac Engineering Corp.
share to pay part of cost of purchase of an operating car¬
Feb. 27 (letter of notification) 100,000 shares of class A *
rier truck line. Underwriter—Fulton, Reid & Co., Inc.,
common stock
(par 10 cents). Y Price—$1.50 per share.
Cleveland, Ohio. Date indefinite.
Proceeds—For working capital; machine tools; equip¬

Wayne Jewell Co., Denver, Colo.

Under¬

Inc. and Fortune IV, Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J. Statement effective

erty and for
Teden & Co..

craft,

Titanic Oil Co.

May. 10 filed 100,000 shares of

July 24/

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties. Office — 704
First National Bank Bldg., Denver, Colo. Underwriter-

Investment

Corp.

The offer was conditioned upon deposit of
(810,000 shares) of outstanding La Gloria
prior to Sept. 6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
Offer may be extended from time to time but not be¬
yond Dec. 5, 1957. Underwriter—None. Statement ef¬
fective Aug. 6.
' ■: v
■ Y
Y ■ Y Y ;•' / • /'*'

Nov. 8, 1957„ Subscription war¬
Oct. 15. Price—At par ($25
per share).- Proceeds—To repay advances from Ameri¬
can Telephone
& Telegraph Co., which owns 1,173,696
shares .(21.6%) of Southern capital stock.
Underwriter
—None.

shares of common

Denver, Colo.
(par $1),
of prop¬
other corporate purposes.- Underwriter —

stock

be mailed

are

(letter of notification) 3,533
be offered for

July 29 filed 375,000 shares of common stock
Price—$4 per share. Proceeds—For acquisition

at least 81%

rants

Wycotah Oil & Uranium, Inc.,

completion of wells, and for
Underwriter—None.

Christi, Tex.

Southern New England Telephone Co.
(19/15)
Sept. 25 filed 1,358,300 shares of capital stock to be of¬
fered for subscription by stockholders of record Oct. 7,

held; rights, to expire

Underwriter—None.

being offered in exchange, on a share-for-share basis,
for capital stock of La Gloria Oil & Gas Co. of Corpus

Regina, Canada.

one new

Proceeds—To repay

Eastern Transmission

Woodbury, Conn.

subscription by common stock¬
holders of record Oct. 25, 1957 on the basis of one new
share for each three shares held; rights to expire Nov. 22,
1957. Price—At par ($25 per share). Proceeds—To repay
all short term bank notes and for construction, program.

July 22 filed 1,000,000 shares of common stock (par $7)

share of each class of stock.

the basis of

Sept. 23

shares for each share held. Price

by amendment.

gas leases, for drilling and
other corporate purposes.

Price—$10
per unit.
Warrants are to be initially exercisable at
$1 per common share. Proceeds—For distillation equip¬
ment; cost of building and land; and for working capital
and other corporate purposes. Underwriter—Regent Se¬

new

supplied

Mil¬
Co., Chicago, 111.

(10/25)
stock

Antonio, Texas

Lynch, Pierce, Fenner & Beane,

Robert W. Baird. & Co., Inc.,

it Woodbury Telephone Co.,

.indebtedness, for acquisition and exploration of oil and

it Signet Distilleries Ltd., Regina, Canada
Sept. 27 filed 250,000 shares of 7% deferred cumulative
redeemable preferred stock (par $10) warrants to pur¬
chase and 250,000 shares of common stock to be offered

1957

basis of two

of New. York;

waukee, Wis.; and William Blair &

The First

—

Corp. and Merrill

both

May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders

Anaheim, Calif. (10/15)
Sept. 23 filed 300,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To¬
gether with other funds, to retire present long-term
debt of company and subsidiaries, to retire short-term
debt of Unitronics Corp. and The Hufford Corp., and for
working capital. Underwriter—William R. Staats & Co.,
Los Angeles, Calif.

curities Ltd.,

Underwriter

general corporate purposes.
Boston Corp., New York.

Siegier Corp.,

one

ton

1957 on the basis of one new share for
each four shares held; rights to expire on Nov. 7, 1957.
Price—To be supplied by amendment. Proceeds — To
retire short term bank loans and for working capital and

writer—None.

in units of

Price—$18.50 per share. Proceeds—To reduce bank loans
and for new construction. Underwriters—The First Bos¬

/ V
;
(par $10) to

for subscription by common stockholders

Oct. 22,

record

•

'Underwriter — Reynolds & Co., Inc.,
' ;•/'/ ' YyV y"

working capital.
'

New York.
■

;

(10/23)

if Taylor Instrument Companies

For investment.

June

•.

shares of capital stock. Price—At market.

investment.

:
Wisconsin Public Service Co.
Y7
.
Fund, Inc., Washington, D. C.
Aug. 27 filed 253,494 shares of common stock (par $10)
June 20 filed 40,000 shares of common stock. Price—$25 f
being offered for subscription by common stockholders
per share, " Proceeds — For investment,
Underwriterof record Sept. 20,1957 on the basis of one new share for
Equitable Securities Corp., Nashville, Tenn.
.
;7/Y:Y;;:;'T''. each 10 shares held; rights to expire on Oct. 8, 1957.

if Scudder, Stevens & Clark Common Stock Fund,
Inc.

■;

Tax Exempt Bond

—To

Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter — Yates, Heitner & Woods, St. Louis, Mo.

basis of

one

Ogden common stock; unsubscribed shares to be offered
to certain employees and officers.
Price—$2 per share.
Proceeds—To pay outstanding obligations to Ogden Corp.

■

St. Louis Insurance

Sept.

the basis of one new share for each
to holders of options on the basis
share for each option to purchase four shares ol

four shares held and

if WiHIams Brothers Co., Tulsa, Okla. (10/23)
,
Sept. 25 fijed, 4'0C|,000 shares of common stock (par $1),
of which 100,000 lhares are to be offered for account of
the company and 300,000 shares for selling stockholders.
Price—To be supplied by amendment. Proceeds — For

of Ogden Corp. on

-r

'7'

•

Copperada Mining Corp. (Canada)
Aug. 30 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For de¬
velopment and exploratory work, drilling costs and sur- t
vey, and for working capital.
Office — 1205 Phillips
Square, Montreal, Canada. Underwriter—Jean R. Veditz
Co., Inc., New York.
* 7 *
"v
.
*
Western

July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholders

for each 60 common shares

:y'

' Y ,7Y

;Y---'/i'- '

Boston, Mass.

(Republic of Panama)

Syntex Corp.

of convertible cumulative
be offered for subscription
record Oct. 9, 1957 on the

Sept J 18 filed 28,096 shares
preferred stock/series C to
by common stockholders of
basis of one preferred share

rerd, Philadelphia, Pa.; and

derwriter—Kesselman & Co..'Inc.. New York..

(10/9)

York; Butcher & SherTownsend, Dabney & Tyson,

Webber, Jackson & Curtis, New

Strato-Missiles, Inc. (10/17)
June 7 (letter of notification) 300,000 shares of common
stock (par 10 cents)./Price—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;
for purchase of additional facilities and for working
capital.
Business—To produce machinery and equip¬
ment.
Office—70 East 45th St., New York, N. Y. Un¬

(1485)

The Commercial and Financial Chronicle

Number 5678

.Volume 186

Co. financing.

it California Interstate Telephone Co. _ ^
Sept. 20 it was reported company plans to issue and sell
some additional common stock in November.
Proceeds—
To repay

tion
Los

about $750,000 of

program.

bank loans-and for

construc¬

Underwriter—William R. Staats & Co.,

Angeles, Calif.

Central Hudson Gas &

Electric Corp.

April 22 it was announced company
sell this year, probably in the fall,
1

plans to issue ana

approximately $7,r

Continued

on page

The Commercial and Financial Chronicle

(1486)

Continued

jrom

page

First

500,000 of sinking fund debentures. Proceeds—To finance
construction

Underwriter—Probably
Peabody & Co., New York.
Central

April 9 it

program.

Illinois

Kidder,

Boston Corp.
and Harriman Ripley & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Lehman Brothers. Bids—
Tentatively expected to be received up to 11 a.m. (EST)

Nov. 6.

Public Service Co.

next two years.

determined

termined

rities & Co.; Blyth & Co., Inc.;
Merrill Lynch, Pierce,

and

Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
Central Louisiana Electric

April 8 it
sell

late

was

convertible

year $6,000,000 of first mortgage bonds.
Together with $4,500,000 of 4%% 12-year
debentures placed privately, to be used to

bank

repay

Co., Inc.
announced company plans to issue and

this
—

loans and

for

construction

program.

Un¬

derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private
placement of an issue of $5,000,000 series G first mort¬
gage bonds.

Corn

Exchange Bank
Sept. 18 stockholders were given the right to subscribe
for 1,062,765 additional shares of capital stock (par $10)
the basis of

one

new

share for each five shares held

of Sept.

18; rights to expire on Oct. 7. Price—$45.50
Proceeds—To increase capital and surplus.
Underwriters
Kuhn, Loeb & Co.; The First Boston
Corp.; Hemphill, Noyes & Co.; and W. C. Langiey & Co.,
as

share.

per

—

all of New York

City.

Chesapeake & Potomac Tel. Co. of Md. (12/9)
July 30 it was announced company plans to issue and
sell $30,000,000 of debentures.
Proceeds—To repay ad¬
vances from American Telephone & Telegraph
Co., the
parent. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
& Co.: The First Boston
Corp.; Harriman Ripley & Co.
Inc.
Bids—Expected to be received up to 11:30 a.m.
(EST) on Dec. 9.

City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the

directors

future

giving consideration to

are

issuance

debentures

which

the

come

well

April 15 it
and

could

those with growth potentials.

Transmission Corp.

Proceeds—Together with other funds, for

struction program.
Underv|ri|^s—-Lehman
Allen & Co.. both of New

Colorado

Fuel

con¬

Brothers and

Commerce Oil Refining Co.
10

was

reported

this

company

plans

raise

about

$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major

portion will consist of first mortgage bonds which would
be placed
privately, and the remainder will include de¬
bentures and common stock (attached or in
units). Un¬
derwriter—Lehman Brothers, New York.
Connecticut Light & Power Co.
Feb. 18, it was reported
company plans to sell not les«
than $20,000,000 of first

mortgage bonds, possibly thii
conditions. Proceeds—For
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New
Haven,
Conn.; and Estabrook & Co., Boston, Mass.

Fall, depending
construction

25-year

issue

collateral

(N. Y.)
(10/18)
Sept. 12 it was announced stockholders will be given
the right to subscribe for 118,900 additional shares of
capital stock at the rate of one new share for each three
Dec.

crease

York.

18, 1957; rights to expire on
1957. Price—$21 per share. Proceeds—To in¬
capital and surplus. Underwriter—None.
.

•.

★ Florida Power & Light Co.
Sept. 30 it was reported company plans to issue and sell
about $15,000,000 to $20,000,000 of new securities some¬
time in November

December

this

year.

Class

financing not yet determined. Underwriter — (1) For
bonds, to be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;
White, Weld &
Co.; Merrill Lynch, Pierce, Fenner & Beane and Kidder,
Peabody & Co. (jointly); The First Boston Corp. (2) For
Merrill Lynch,

stock:

common

Pierce, Fenner & Beane

and Kidder, Peabody & Co. (3) Preferred stock
placed privately.

Gulf

Interstate

May 3 it

Gas

may

upon market

not

yet been determined.

Proceeds

—

For construction

Underwriters—Carl M. Loeb, Rhoades & Co.
Lynch, Pierce, Fenner & Beane.

program.

Hartford National Bank & Trust Co.

Sept. 3 it was announced Bank will
offer^to its stock¬
holders of record Sept. 25, 1957 the right to subscribe on
Oct.

15, 1957 for 73,000 additional shares of
capital stock (par $10) on the basis of one new share
for each 14 shares held. Price—$25 per share. Proceeds
—To increase capital and surplus.
Underwriter—None.

Hathaway
June 24 it
to

its

stock.

(C. F.)

Co., Waterville, Me.

announced company plans soon to offer
stockholders some additional common

was

common

Underwriter—Probably H. M. Payson & Co., Port¬

★ Hewlett-Packard Co., Palo Alto, Calif.
Sept. 23 it was reported this company expects early in
do some additional
financing. Business—
Electronics. Underwriter—May be Blyth &
Co., Inc., San
Francisco, Calif.
November to

★

Cook Electric Co.

Crucible Steel Co. of America

Houston Lighting &

Sept. 30 it

Power Co.

(11/20)

reported company plans to offer between

was

$30,000,000 and $40,000,000 first mortgage bonds.
writer

—

Probable bidders:

Securities
Union

Corp.;

Securities

Under¬

determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; Equitable
Lehman Brothers, Eastman Dillon,
&

Co.

and

Salomon

Bros.

Hutzler

(jointly); Lazard Freres & Co. and Blyth & Co.. Inc
(jointly); Kidder, Peabody & Co. Bids
Tentatively
scheduled for Nov. 20.
Registration—Expected to Oct. 24.
—

Idaho

May 16 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
Fall in addition to between
$10,000,000 to

$15,000,000
1.
Underwriter—To be
bidding, probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.

first mortgage bonds after Nov.

by competitive

& Hutzler and Eastman

Dillon, Union Securities

Co.

(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
First Boston Corp. (jointly);
Kidder, Peabody &
(jointly); Equitable Securi¬
stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co.
(jointly).

Sept. 18 it

The

common

Co. and White, Weld & Co.
ties Corp. (2) For

was announced
company plans to offer to its
stockholders the right to subscribe for
101,153
shares of cumulative convertible
preferred stock on the
basis of one share of
preferred stock for each 36 shares
of common stock held.
Stockholders to vote Nov. 7

approving financing.

Price—At

par

($100

Proceeds—Together with funds from sale
mortgage bonds, to be used for expansion

per

share).

additional

program

derwriter—The First Boston
Corp., New York.
Darco

Industries, Inc.

Sept. 23 it

Un¬

was

reported registration is expected of
ap¬
of common
stock, of which
about 225,000 shares are to be
sold for account of com¬
pany and 50,000 shares for
selling stockholders. Business
—Manufactures products for commercial
and military
aircraft and missiles.
Underwriter—William

★Dayton Power
26
sell

was

R. Staats &

•

(11/6)

company

plans to issue and

$25,000,000 of first mortgage bonds

ceeds
gram.

due" 1987.

Pro¬

To repay bank loans and
for construction
pro¬
Underwriter—To be determined

—

bidding.

competitive

Probable bidders:
Halsey, Stuart & Co lnc
Dillon, Union Securities & Co. and Salomon
Bros. & Hutzler
(jointly); Morgan Stanley & Co. and
W. E. Hutton & Co.
(jointly); Blyth & Co., Inc., The
Eastman

—For

Michigan

reduction

Electric

Co.

bank

loans

and

■

for

construction

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

Inc.; Harriman Ripley & Co. Inc.; The First
Corp.; Eastman Dillon, Union Securities & Co.

Tentatively expected to be
on

Sept. 23 it

Co.,

reported

was

received up to 11

a.m.

Baird &

a.m.

Milwaukee,

Wis.

was

announced

company

plans

raise

money this year through sale of new
Proceeds—To repay bank loans and for con¬
program.
Underwriter—For bonds, to be deA

1977.

(11/18)-

the company plans to issue
$2,000,000 first mortgage bonds, series A, due

sell

and

Co.

announced

was

Proceeds—For construction program and to
repay
Underwriter—To ,be determined by com¬

bank

loans.

petitive

bidding.

Probable

bidders; Halsey, Stuart &
Corp.; Kidder, Peabody & Co."
(jointly); Bids—To foe opened

Co. Inc.; The First Boston
and
on

White, Weld & Co.

Nov. 18. •>:*/!>:

■'

'■>.

Long Islaiid Lighting Co.

■

April 16 it
this

was announced company plans to sell later
$40,000,000 of rist- mortgage bonds, series J.
$12,000,000 of series C bonds due

year

Proceeds—To refund

Jan. 1, 1958 and for construction
program.
—To be determined by competitive

Underwriter

bidding. Probable
Stuart & Co. Lpc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly);. W. C. Langiey &
Co. and Smith, Barney & Co.
(jointly).
;
bidders:

Halsey,

Louisville &
Bids

Nashville

RR.

expected to be received by the company some
time in the Fall for the purchase from it of
$14,400,000
of equipment trust certificates. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are

Maine

Public

Aug. 27 it
and sell

writers

was

Service Co.

announced

that company plans

publicly 50,000 shares of

common

stock.

issue

Under¬

Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co., both of New York.
Offering—
Expected in November.
—

June

19 it was reported company plans
registration of
issue of $3,000,000 of convertible debentures due 1972.

Underwriter—Lee Higginson Corp., New York.

Marine Midland Trust Co. of New York

(10/2)

Sept. 4 it was announced company plans to offer its
stockholders the right to subscribe for 210.000 additional
shares of capital stock (par. $10) on the basis of one new
share for each 4.95 shares held.

Marine Midland Corp.,
the parent, owns 98% of the Bank's
1,040,000 shares out¬

standing. Price—$50 per share. Proceeds—To increase
capital and surplus. Underwriter—None. Marine Mid¬
land Corp. will purchase all stock to which it
maw^e
entitled, plus any shares not subscribed for by mfhority
stockholders.

...

;

(10/29)

Merrimack-Essex Electric Co.

(11/6)
*
Aug. 21 it was announced that this company plans to
issue and sell $20,000,000 of first mortgage
bonds, series
B,v/due 1987.'/ Proceeds—For acquisition of properties
aqd -construction program. - Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Salomon
R$bs. & Hutzler; Eastman Dillon, Union Securities & Co.

a||i Wood, Struthers & Co. (jointly); Lehman Brothers;
Trie First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane; Kidder, Peabody
&|Co. and White, Weld & Co. (jointly). Bids—To be
opened

Nov. 6.

Michigan Bell Telephone Co. (11/18)
Sept. 11 company applied to-Michigan P. U. Commission
for authority to issue and sell $40,000,000 of debenture.
Proceeds—To repay advances from parent. Underwriter
be determined by competitive bidding. Probable

—To

bidders:

Halsey, Stuart & Co. Inc.; Morgan, Stanley &
Bids—Expected to be received on or about Nov. 18.

Middle South

•Sept. 16 it
of

Utilities, Inc. (11/19)
reported company hiay sell 451,894 shares
(par $10). Proceeds—To increase in¬

was

common

stock

vestments in four operating subsidiaries. Underwriter—
Top be

determined

competitive

bidding.

Probable

bidders: Blyth & Co.,. Inc.; The First Boston Corp.';
Kpdder, Peabody & Co. and Merrill Lynch, Pierce,
F&mer

Beane

Dj[|)on, Union

(jointly); Lehman Brothers; Eastman

Securities & Co. and Equitable Securities

C&rp; -(jointly). Bids—To
ilMontana Power Co.

be received

Nov.

19.

20 it was reported company may issue and sell in
thdifall about $20,000,000 of debt securities. Proceeds—r
Fo#/ construction program and to reduce bank. loans.
Underwriter—To be determined by competitive bidding.

Provable bidders: Halsey, StuartCo. Inc.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬
der; iPeabody & Co.; Smith, Barney & Co., and Blyth &

★ Montreal

& Webster

Metropolitan

was

reported

Securities Corp.

(jointly)'.

Commission

issue of bonds may be pub¬

licly/offered

Co., Milwaukee, Wis.

(EST)

announced

Beaiie and Stone

bids will be received up to
Oct. 29 at the Department of Justice,
Office of Alien Property, 101 Indiana
Ave., N. W., Wash¬
ington 25, D. C., for the purchase from the
Attorney
General of the United States of 3,600 shares of
capital
stock (par $5) of this
company (representing less than
11

Co.

Co^glnc. (jointly); Merrill Lynch, Pierce, Fenner

(EST)

stock is planned for

★ Johnson Service Co., Milwaukee, Wis.
Sept. 30 it

air

;.v-

Bids—

secondary offering of 100,000
November, with
registration about mid-October. Underwriter—Robert W.
common

outstanding.

temperature and

new

Sept. 26 it
Service

automatic

Boston

Dec. 10.

★ Johnson
shares of

Light Co.

announced

(12/10)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds

tive

proximately 275,000 shares

Co., Los Angeles, Calif.

Indiana

program.

(10/21-25)

Aug. 21

Co.

Power Co.

determined

number

termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. €nc.; Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner (joint-%
iy).

and Merrill

before

the

Mangel Stores Corp.

to issue some
additional first mortgage bonds, the amount of which has

program.

July 15 it was reported that company is
planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.

struction

Co.

announced company plans

was

land, Me.

Iron Corp.

Aug. 19 it was reported company plans to issue and sell
about $40,000,000 first mortgage bonds due 1977
(with
stock purchase
warrants). Underwriter — Allen & Co.,
New York.
June

Gas

was

securities.

Federation Bank & Trust Co.

used

July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,000 (each unit expected to consist of a
$25 debenture or
'$35 interim note and five shares of $1 par common

stock).

$3,750,000

Lawrence Gas

announced company proposes

—

Coastal

sell

was

trust bonds.
Proceeds
For advances to Blackstone Valley Gas &
Electric Co., a subsidiary.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).

possible

largely to acquire investments producing ordinary in¬

Laclede

Eastern Utilities Associates

shares held of record Oct.

Chemical

Kidder, Peabody & Co.;

Fenjner & Beane (jointly);

Proceeds

Underwriter—For any bonds to be de¬
by competitive bidding. Probable bidders.
Halsey, Stuart & Co. Inc.^ Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).

1-%

conditioning control systems.

$11,700,000

April 3 it was announced company may need additional
capital of between. $25,000,000 and $35,000,000 during the

reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program. Underwriter—To be

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬

Business—Manufactures

Aug. 5 it
Gas & Fuel Associates

Eastern

was

one-half

Thursday. October 3, 1957

...

in the United States. The Commission re-r
bid of 92.64% for an issue of $6,376,000 of 20yea# bonds with an interest rate of 51/2%. Underwriter
—May be determined by competitive bidding. Probable
bidders: Lehman Brothers, White, Weld &
Co., Eastman
Dillon, Union Securities & Co., and Blyth & Co., Inc.
(jointly); Shields & Co., Halsey, Stuart & Co. Inc., Savjected

drd & Hart and Salomon Bros. & Hutzler (jointly).

Mystic Valley Gas Co.
Aug. 21 it was announced
sell

(11/18)

company plans to issue and
$3,500,000 first mortgage bonds, series B, due 1977.

Proceeds—To

repay

bank

loans

and

for

construction

dumber 5678

Volume 186

stock.

Underwriter—To be determined by competi¬
>. Probable
bidders: Halsey, Stuart & Co.
Inc.; White; Weld & Co. and Kidder, Peabody & Co.
(jointly); The First Boston Corp.; Lehman Brothers.

program.

Bids—To be

Sept. 9 it
tional

(10/28)

Ry.

29 this company announced that it has
the first half of 1958 its plan to raise

Aug.
until

preferred stock (par $10). Price—Expected to be14 between $11.12V2 and $11.50 per share, depending upon mar¬
ket conditions. Proceeds—To discharge a note of $4,160,-

Under¬

reported

was

company

stock later in

held by City Industrial Co. in connection -with ac¬
quisition of Bethlehem Foundry & Machine Co. common
stock and for working capital and general corporate pur¬
poses. Underwriter—Van Alstyne, Noel & Co., New York.

1957.

Underwriters

★ Toledo Scale Co.
' ■Sept. 26 it was reported that, following merger with
Houghton Elevator Co., Toledo Scale Co. plans to issue

Ritter Finance Co.

reported company plans debenture and
Underwriter — Stroud & Co.,
Philadelphia, Pa. /
Sept. 3 it

deferred

was

stock.

stpck or securities convertible into common, stock.

Pro¬
ceeds
Fob i construction 'program. /Underwriter.-- For
any
honds; to be determined / by., competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; ,Glore, Forgan & Co.; Blyth & Co,, Inc.

plans to sell publicly

Ohio Water Service

Co.

San Diego Gas

up
★

Chemical Corp.

•'Otter Tail

and

held

(

Southern

Sept. 23 it

on a bank loan in
of Sept. M^l-957 of all the

outstanding capital stock of Hannifin Corp., Des Plaines,
111. Underwriter—Hornblower & Weeks, New York.
Permian

Basin

Pipe Line Co.

Sept. 27 it was announced company plans to raise ap¬
proximately $250,000,000 to $300,000,000 later this year
through an offering of additional capital stock to stock¬
nderwriter
holders. Proceeds—For expansion
program. Underwrite
—Morgan Stanley & Co., New York.
pected late in October.

Pittsburgh & Lake Erie RR. (10/15)
are
to be received by the company up to noon
(EDT) on. Oct. 15 for the- purchase from it. of $4,950,000

Plantations

Bank

Rhode

atiorr—

[Registration^

"""

★ Standard Steel Products Manufacturing Co!
Sept. 23 it was reported company plans to issue and
sell $165,000 of 7% debentures due 1967 and 11,000 shares
of common stock in units of $30 of debentures and two
Underwriter—The Milwaukee Co., Mil-

shares of stock.
.

waukee, Wis.
Electric Co.

Suburban

Island

(New Jersey)

★ Standard Oil Co.

Bids

•

(11/11-15)

Co.

stock, to be used to repay bank loans and for construc¬
Underwriters—Snow, Sweeny & Co. Inc.
and A. C. Allyn & Co. Inc., both of New York. Registra¬
tion—Expected on or about Oct. 10.

was

equipment trust certificates to mature annually from
Nov. 1,1958 to 1972 inclusive. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon, Bros. & Hutzler.

Gas

was

tion program.

announced company, a subsidiary of
Northern Natural Gas Co., may issue about $25,300,000
of new securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction. Underwriter — Glore, Forgan &
Co., New York.
/ ;, ;
'
;/
May

(10/31)

Inc.; Salomon Bros. & Hutzler.
Union

Aug. 21 it was announced company plans to issue and

19; 1957 the right to subscribe for 8,000 additional shares

sell

capital stock (par $20) at the rate of one new share
for each five shares held; rights to expire on or about
Oct 15, 1957. Price — $55 per share. Proceeds — To in¬
crease capital and surplus. ; Underwriters—G. H. Walker
& Co. and Miller & George, both of Providence, R. I.

1987.

*•

Public

sell

Service

Electric & Gas Co.

announced company anticipates it will
in the Fall of 1957 or in 1958 $25,000,000 of preferred

Aug.

was

.Net

Kidder, Peabody Group
Offers General

Tire^/

& Rubber Debentures
Kidder* Peabody & Co. and as¬
are offering publicly to¬
day (Oct 3) an issue of $12,000,000
.

sociates

proceeds from

mortgage bonds, series B, due
Proceeds—To repay bank loans and for construc¬

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and White, Weld & Co.

Bids—To be opened on Dec. 11.

Superior Tool & Die Co.
was announced company plans to issue and
sell 150,000 shares of 70-cent cumulative convertible

the sale

able

for

the

plus accrued

equivalent
amount- of outstanding short-term

purposes,

used

retire

bank loans incurred in connection

capital
require¬
ments.
Working capital needs
have been increasing since 1953 as
a result of increased sales, includ¬

with

working

the

sinking fund at par
interest. For other

debentures are
redeemable at the option of the
company
at
redemption
prices
ranging from 106% for those re¬
deemed prior to Oct. 1, 1958, to
100%

for

after Oct.
For

new

those

redeemed

1, 1981.

and to

common

stockholders of

the

Virginia Electric & Power Co.
Mlarch 8 it

was

(12/3)

announced company plans

to sell $20,-

000,000 of first mortgage bonds.... Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler; Eastman
rities &
Weld

* Wabash RR.
Bids

Dillon, Union Secu¬

Co., Stone & Webster Securities Com.; White,
Co. Bids—Expected to be received on Dec. 3.

will

(10/9)

received

Wall St.,

by the company at 44

N. Y. up to noon (EDT) on Oct. 9 for the
purchase from it of $2,745,000 equipment trust certifi¬
cates, series I, due annually from Oct. 1, 1958 to 1972,
inclusive. Probable bidders: Halsey, Stuart & Co. Inc.;
New York 5,

Salomon Bros. & Hutzler.
Wisconsin

Public

;

Service

Co.

Aug. 27 it was announced company plans to issue and
sell about $7,000,000 of first mortgage>. bonds late in
1957. Proceeds—For construction program and to repay
bank loans. Underwriters—To be determined by compet¬
itive

Inc.;

bidding. Probable bidders: Halsey, Stuart & Co.
Kidder, Peabody & Co.; The First Boston Corp.;

Merrill Lynch, Pierce,'Fenner & Beane; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
Weld

Co.

Wisconsin Southern Gas Co.,

Zale Jewelry

made

other

Co., Dallas, Texas

announced that a full registration will
new issue of securities, the amount and

television and

pictures through its sub¬

sidiary,

RKO Teleradio Pictures,

Inc.

the six

months ended May

31, 1957, net sales of the company
and
consolidated
subsidiaries
amounted to $205,968,169 and net
after

Underwriter
Dallas, Tex.

details not yet available.

motion

income

was

Guerin & Turner, Inc.,

ment field in radio,

For

Inc.

July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
Underwriter—The Milwaukee Co., Milwaukee, Wis.

Sept. 24 it

July 26 it

the debentures with warrants will

parent)

$2,500,000 of common stock of Valley
Gas Co., it is to receive as part payment of certain
Blackstone properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.

of first

tion program.

(jointly).

its

latter

(jointly); Dean Witter & Co.; Lehman Brothers; White,

(12/11)

Sept. 30 Bank offered to its stockholders of record Sept.

$4,500,000

Associates
the

reported company plans to issue and sell
$9,000,000 of. debentures due 1983. Proceeds—Together
with funds from private sale of $3,000,000 preferred

by Hannifin stock¬

dispose by negotiated sale the first three
in this paragraph.
April 15 it was also announced Blackstone plans to offer
to its common stockholders (other than Eastern Utilities
securities mentioned

new

expected to be received by the company at 165

Stuart & Co.

California

proposes

Broadway, New York, N. Y., up to noon (EST) on Oct.
31 for the purchase from it of approximately $6,000,000
equipment trust certificates. Probable bidders: Halsey,

payment

anticipate

.connection with acquisition

are

Line Corp.

Valley Gas Co.
April 15 it was announced company, a subsidiary oi
Blackstone Valley Gas & Electric Co., plans to issue,
within one year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
T*he latter, in turn,

reported company plans to issue and sell

was

Southern Pacific Co.

Bids

voted September 19 to increase
stock; to 750,000 shares from

notes

Inc.

pected to be received until the Fall.

common

subordinated

holders

Transocean Corp. of

Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not ex¬

550,000 shares./ Proceeds—To redeem $1,500,000 convert-;
ible

Smith-Corona,

Pipe

May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.
1

Nov. 7.

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders;

was

authorized

(EST)

Gas

yet determined). Underwriters—White, Weld & Co. and
Stone & Webster Securities Corp., both of New York.

South Carolina Electric & Gas Co.

Powwer Co.

Stockholders

public.

noon

Jan. 14 it

Sept. 9 it was announced that company may, at a favor¬
able time, sell additional shares of common stock to the
the

Transcontinental

Proposal to authorize
$6,000,01)0 of convertible de¬
bentures through an offering to stockholders later this
year.
Proceeds — For expansion and to reduce bank
loans. Underwriter—Lehman Brothers, New York.

Parker Appliance Co.

was

Sept. 4 it was reported company plans to sell $30,000,000
of pipe line bonds and about 750,000 shares of common
stock about the middle of November (method of sale not

the directors to issue about

announced company plans to offer to its
common stockholders the privilege of subscribing for a
new issue of $5,200,000 10-year 514 % convertible deben¬
tures on the basis of $100 of debentures for each 14
common
shares held. -Underwriter—Blyth & Co., Inc.,
New York and San Francisco.
//-

Aug. 29 it

& Electric Co.
reported company

was

Sept. 30 stockholders approved a

development- of corporation's business

during next few years. Underwriters—Dillon, Read
Co. Inc. and Eastman Dillon, Union Securities & Co.

it"

Salomon Bros. & Hutzler; Lehman Brothers;
Corp.; White, Weld & Co. and Shields
& Co.
(jointly); Eastman Dillon, Union Securities &
Co.; Kuhn, Loeb & Co. Bids—Expectedrto be received

was

connection with

The First Boston

announced company plaits to issue and
sell publicly $60,000,000 of convertible subordinate de¬
bentures prior to end of this year, subject to market
conditions.
Proceeds—For additional capital needed in
19 it:

Sept-.

Lines, Los Angeles, Calif.
reported company plans issue and sale in
40,000 shares of common stock (par $2.50).
Underwriter—Cruttenden, Podesta & Co., Chicago, 111.

Co., Inc.;

company

/////./:///;/V/': V/

Ofln Mathieson

October

10.

Transcon

(11/7)
plans to issue and
first mortgage bonds due 1987. Proceeds
—To repay bank loans and for new construction.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &

to issue and sell in
November an issue of $1,500,000 convertible subordinated
debentures.
Underwriter—McDonald & Co., Cleveland,
Ohio.
Registration — Expected in about vyvo or three
weeks.

Aug. 12 it

Oct.

sell $12,000,000

Co., Inc., San Francisco, Calif.

Corp. Bids—Tentatively expected to be received

Boston
on

competitive bidding.

Stuart & Co. Inc.; The First

Probable bidders: Halsey,

Aug.

—Blyth & Co., Inc., San Francisco and New York. Offer¬
ing—Expected,.'in November. T
'
.";•••

Sept. 26 it was reported

Underwriter—To be determined by

y' Northern Natural- Gas - Co>• r&;- •/:-•"!■'
Sept. 9 it was reported, company plans to-issue and sell
$25,000,000 of debentures due 1977. Proceeds—To repay
bank loans aryd for construction program. Underwriter
.

Underwriter—

San

■

Proceeds—For expansion program.

(10/10)

Sept. 10 it was reported company plans to sell $6,000,000
of first mortgage bonds due Oct. 1, 1982. Proceeds—To
refund like amount of bonds maturing on Nov. 1, 1957.

200,000 shares of its common

Diego Gas & Eleclric Co. (10/31)
/
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth

—

additional

Underwriter—McDonald
Registration—Expected in No¬

stock.

vember.

Blyth & Co., Inc., New York.

the Fall 5

common

Co., Cleveland, Ohio.
Toledo Terminal RR.

company

$8,000,000 and $10,000,000 early this fall. No decision
has been-made as to the form of the proposed financing,
but no consideration is being given to sale of common

additional

some

stock financing.

Ryder System, Inc.
Aug. 28 it was announced

between

„

500

Hampshire
plans to sell some addi¬

Proce«$s—For con¬
— Kidder,
Peabody &
Blyth & Co., Inc., both of New York.

Co. and

Co.

Gas

program.

■■

common

Illinois

construction

For

;

struction program.

expected to be received by the company up

Northern

—

Public Service Co. of New

to
noon (EST) on Oct. 28 for the purchase from it of about
$4,000,000 equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are

York.

New

opened on Nov. 18.

Norfolk & Western
Bids

Proceeds

writer—May be Merrill Lynch, Pierce, Fenner & Beane,

bidding.

tive

<1487) * 59

dhronicle

The Commercial and Financial

taxes

amounted

—

Eppler,

With United Securities
(Special to The Financial Chronicle)

GREENSBORO, N. C, — Henry
D. Jefferson is with United Se¬
curities

Company,

Southeastern

Building.

John D. Farnham

John D. Farnham, asociated with
years the principal
to the ex¬
$5,814,861.
'
of General:Tire & Rubber Co.. 6%
Bache & Co. in St. Paul, passed
pansion of the scope of activities products of the General Tire &
subordinated debentures, due Oct. of -the company and its subsidi¬ Rubber Co. have been automobile,
away Sept. 30 at the age of 56. In
With Collin, Norton
the past he had conducted his own
1, 1982, with common stock pur-: aries, and higher costs of produc¬ truck and airplane tires and tubes,
chase warrants attached, at a price tion.
investment business in St. Paul.
Any proceeds received by tire repair materials and indus¬
(Special to The Financial Chronicle)
In recent
of par. The warrants, exercisable the company upon the exercise of trial rubber products.
TOLEDO, Ohio—Bertha D. John¬
on or after Jan. 1, 1958, entitle the
the warrants will be used for gen¬ years, General Tire has expanded
With Frank Knowlton
son is now affiliated with Collin,
into other activities as well, and
holder to purchase 20 shares of eral corporate purposes.
(Special to The Financial Chronicle)
The "new
debentures
are
re¬
today, a substantial part of its Norton & Co., 506 Madison Ave¬
common
stock,
par
value 83 %
OAKLAND, Calif. —Frank W,
deemable for refunding at a lower business is in plastic materials and nue, members of the New York
cents, for each $1,000 of deben¬
Enos is now with Frank Knowlton
tures at $25 per share to and in¬ rate of interest at 110% for the products as well as in the rocket and
Midwest
Stock
Exchanges. & Co., Bank of America Building.
cluding Oct. 1, 1962 and $27.50 per first five years and then at suc¬ propulsion field, the latter through Mrs. Johnson was previously with He was formerly with Stone &
subsidiary,
Aerojet - General
share thereafter to and including cessively lower prices for the next a
Youngberg.
Waddell & Reed, Inc.
five years. They are also redeem¬ Corp. It is also in the entertain¬
Oct. 1, 1967.
*
.

ing those attributable

many

The Commercial and Financial

(1488)

H. Hentz Adds

Staff

term

bonds, especially Govern¬
yielded so near to a zero
return that, for a mutual fund at
least, such holdings could be con¬
sidered almost synonymous with

Mutual Funds

BEVERLY HILLS, Calif.—
David Menaker has been added to

the staff of H. Hentz & Co., 9680

formerly with
&

Daniel D.

By ROBERT R. RICH

was

Weston

Business

been

the fourth quarter will set new records

and

carry Gross National Product for 1957 to over $436 billion,
5% above last year's alDtime record of $414 billion, according

A MUTUAL

forecast just released by National Securities & Research Corp.,
sponsors and managers of the National Securities Series of mutual

INVESTMENT

investment funds.

Consumer

FUND

the chief impetus to the

The investment company predicts personal
expenditures will exceed .$280 billion in 1957 com¬

consumptioh

with last year's $267.2

"one

and

billion.

Retail

sales

are

described

of the

strong features of the current business situation"
expected to reach $200 billion for the first time in the-

are

nation's economic history.
Efforts of the Administration

and

FOLDER AND PROSPECTUS TO
YOUR INVESTMENT DEALER OR

construction

Iname, SeiMJ/l

WRITE FOR

FREE INFORMATION

and

NATIONAL SECURITIES &

anil

maintenance, but outlays for aircraft,

other military equipment

Established 1930

invest in

home starts

new

1957

1956 totals, "The dollar value of
commercial, industrial and public

ATOMIC SCIENCE

MUTUAL

FUND, INC.

dividends

1033 THIRTIETH STREET, N. W„ WASHINGTON 7, D. C.

Tel. FEderal 3-1000

expected to attain

are

there

flected

awareness

individual

1957

growth

long-

the

136

the

steady
in¬

open-end

vestment company (mutual
fund)
members of the National Associa-

tioT^^di^Tnycstment

Companies,
Joseph E. Welch,

Group Securities, inc.

a ceo r di n
guWVI r.
President of the Association.

Incorporated 1933

investing

Sept. 30, mutual funds
represented in the financial

were

bonds, preferred and

plans

of an estimated 1,384,000
investors holding 2,924,000 share¬
holder accounts, Mr. Welch re¬
ported.
Value of these accounts

stocks, with the
"balanced"
man¬

agement's judgment.

PROSPECTUS ON REQUEST

that

date

estimated

was

$9,102,000,000.

Dec." 31,

1956,

shares value at $9,046,431,000 were

from your investment dealer

Group, Incorporated

Street, New York 5,N.Y.

held

2,580,049

estimated

accounts

the first nine months of 1957 com¬
pared with $1,004,132,000 for the
can own

YOUR share

of American business

like period of 1956, the Association

spokesman reported.
_

through

FUNDAMENTAL

for

...

in
of

mutual fund

common

stocks. For copy

prospectus-booklet of
facts about the Fund, mail
this coupon today.

$342,089,000.
use

plans, Mr. Welch pointed out. The
typical regular account sharehold¬
er,

"lump-sum" purchaser, has
savings
and
government

bank
bonds

representing

plan

16.8% of his
individual corporate

while

the

nine-month

period

estimated 167,000 new accumula¬
tion plans for the
regular purchase
of mutual fund shares were
started

by
and company,

Elizabeth

inc.

3, N. J.

investors,

This

rise

Mr.
of

Welch
32%

stated.

above

the

126,408 plans opened for the like
period last year. The number of
accumulation

plans

force is
27

ular monthly or
vals.
He
owns

accumulation
a

value then

Commenting
Mr. Barringer

per an¬

year

599,000, with

mated

amounted

by disappointing pickups in
orders, especially for steel
tools.

machine

and

pointed

"the

out,

contains

"But," he*
business news
of brighter

up above an
million again, and

news—housing starts
annual rate of

assets

almost

savings
Bonds

accounts

and

among

Savings

vidual

corporate

stocks

held

di¬

rectly of 33.8%.
National Association of In¬
vestment Companies now has a

membership of 136

open-end

in¬

vestment companies and 27 closedend
investment

companies with
combined assets in excess of
$10

billion.

"uninvested"
receivables

fundamental factors—auto¬
demands, high defense

many

mation

(cash, net
Government

currently
a

value esti¬

$815,000,000,

the

Association President
reported.

Letter.

This

reduction, Mr. Barringer
board, resulted from, the
Fund's policy of
purchasing com¬
mons on a
descending scale which
remained in force right up until
the market's recent
sharp turn¬
his

around.

that

approximately
$.900,000 of temporarily held prior
securities, plus a net of some $1.6
million
were

sold

proceeds
stocks.

Delaware
in

all

the

invested

Thus,

Delaware's

Fund

period and

the

common

than

11%

working

favorable side."

the

chased in the later stages of the
steep July-September decline.
The mutual fund executive and

investment

counselor

went

explain what "uninvested"
to

Delaware's management. "Not
ago," he recalled, ("short-

long

crease

substantial in¬

capital assbts and

their

with

ourselves

concern

forts

to keeping an eye
long-range growth trend

J. E. Welch Pres. of

various

Nal'l Inv. Cos. Assn.

short-

the

Canadian

areas

busi¬

have been vigilant
in our attempts to employ in our
Joseph |. E.
Welch, Executive
Vice
President
of
Wellington investment work, shares in those
Fund, Inc. has been elected for a companies which have established
a place for themselves in Canada
one-year
term / to the
newly and whose management and re¬
created position of President
of
and

ness,

sources are such that we can ex¬
Association of In¬
Companies. The new po¬ pect them to grow with the econ¬
sition takes the place of that of omy as a whole.

National

vestment

"With

Executive Com¬

Chairman of the

substantial

the

flow

capital into the Fund, it has
been possible, carefully and se¬
1956 by Robert E. Clark, Execu¬
tive Vice-President of Calvin Bul¬ lectively, to invest this money in

mittee,

post held since January,

attended

Welch

Mr.

Uni¬

the

versity of Pennsylvania and for 13

associated with the New

years was

Henderson

Co.

Federal

the

with

years

and

Reserve

been

associated

with Wellington Fund

since 1937.

the

has

time, the associa¬
tion announced expansion from
three members to six, of its Ad ¬
At

Committee

the

next year

are

who was elected
Fi¬

nance Committee; Dwight P. Rob¬
inson, Jr., named Chairman of the
Open-End Investment Company
Committee and George E. Clark,

the

Company

S. L. Sholley

committee

Closed-

the

Chairman

Investment

mittee.

Com¬

will serve
capacity

in his

on
as

Chairman of the association's Pub¬
lic Information

Committee.

Burr, Executive Di¬

Edward B.

rector of the National Association

of Investment

elected

Companies,

was

also

associa¬

member of the

interest¬

prices."

The annual report also includes
a

section, headed "Canada

the

Move," which reviews recent de¬
velopments in the country's econ¬
omy

and in key industries.

Business Outlook

Bright, But
Dip Ahead
Tight

will

money

cause

tem¬

the

slowdown

porary

near

future, investment company offi¬
cials
were

New
at

mutual

and

retailers

fund

told this week in the banquet

address

York

Raymond
Rodgers,
University economist,

the ninth

Conference

annual Mutual

Fund

held

Hotel

the

Statler.

"Sooner

later, tight money,
particularly availability of funds,
is bound to have a restraining ef¬
fect on banking and business," he
said- "I anticipate a slowing up
or

in business in the months ahead."
Professor
ever,

that

Rodgers added, how¬

the

and credit may
too long.

screws

money

be loosened before

"Note carefully: The brakes of
restraint
are
being used

Committee.

Administrative

tion's

tive

program.

Administrative

the

serve

named

same

ministrative

End

believed

are

ing situations at relatively attrac¬

four-

for

Philadelphia

Loch

Henderson

John J.

and
was

firms

Exchange

Stock

York

new

what

lock, Ltd.

credit
In

reorganization of commit¬

Committee

ecutive

name

association's Ex¬
that

because business is

too

"The
serve

moment

authorities

the

Federal

fell

Governors.
terms

Elected for three year
Edward

were:

Johnson,

John

Schaeffer, Robert Cody, Her¬

bert

Anderson

and

Joseph E.

Welch.

The National Association of In¬
vestment

Companies

136 open-end

represents

investment

compan¬

ies (mutual funds) and 26 closedend

investment

companies

assets in excess of
t-

•J

$10

with

billion!.

good," he

asserted.

its

Board

voted

changed

means

holders have had

term, speculative profits. To the
contrary, we have devoted our ef¬

current

equity hold¬
ings is comprised of stocks pur¬

that

t(i> look most
budgets, population growth and
imbalance, continuous demand for encouraging over the years ahead.
"It is not our investment policy
our exports, etc.—that are actively

tee functions, the

added

note

the picture continues

Chairman of the association's

position

and

pe¬

of the

its predecessor, Canada
General Fund, Inc. Henry T.

Robert E. Clark,

agency securities) to less than 3%
of total resources at
present from

five-year

since the organization

chilly

Committee for

Delaware Fund has reduced Its

marked

year

riod

Fund and

many

give representation to all major

9% to 3%

cal

developments have
people to look only at
come
completely up to expecta¬
side of the business
tions.
During the period share¬
thermometer, overlooking the

too

the

Cuts Cash From

31, 1956.
Pointing out that the latest fis¬

operations in textiles, Vance, president, comments:
"Over the past five years, your
plywood.
It seems
management has been carefully
probable," he reasoned, "that the
surveying, in broad outline as well
pessimism which the stock ntaras
in specific detail, the entire
ket's decline has generated in the
Canadian business scene. Happily
financial community has caused

facets of the association

Delaware Fund

6,535,509

and

cement

Bank

'ine

$12.80

increased

representing 33.7%, mutual Newberger,

fund holdings of 32.5% and indi¬

cal year, compared with $13.54 per
share for 5,740,828 shares on Aug.

somewhat damp¬

have been

new

gain in the number

shares at the end of the lafest fis¬

observed that fore¬

casts

Limited

of shareholders from 29,397 to 34,301.
Net asset
value per share

business

the

Fund

increase in the size of

660,646, and

ened

quarterly inter¬

equally divided in thirds

integral parts of their financial told

held directly account for
60.3% and mutual fund shares for
22.9%.

hugh w. long

422,752

were

1956,

typical accumulation plan
holder, still in the estate-creating
phase, purchases his shares at reg¬

tors'

mutual fund shares

stocks

Address....

Sept. 30,

nine-month period were a
July high of around 9%, chair¬
estimated at $320,000,000. The
fig¬ man D. Moreau Barringer reported
ure
for the like period last
year in his latest
semi-monthly Direc¬
was
as

investing

Repurchases

the

Investors

INVESTORS

ago,

1,207,000 investors.

Investors purchased
$1,070,000,000 of mutual fund
shares during

You

The

financial planning was re¬
during
the
first
nine

months

63 Wall

for

need

year

plans in force with

Nearing

growing public

the

range

ADMINISTERED FUND

billion

of $670,000,000.

in accordance with

maturities

less.

the

Now

THE FULLY

a new

Fund Holders

1.1 Million

Distributors

construction, including
well as residential, should

peak of $12.5
1957 compared with $11.9 billion in 1956."

GET THE FACTS AND FREE PROSPECTUS

total
as

year's aggregate by about $1.4 billion to reach a new
peak of about $47.5 billion," according to the forecast.
"Although there will be considerable variation in the oper¬

DEVELOPMENT

proportions

expected to fall short of

are

ating results of individual companies and industries," tne invest¬
ment company's
Economic Staff states, "we expect total- net
earnings of all U. S. corporations to approximate $22 billion,
up 4.7%
from the revised total of $21 billion for 1956.
Cash

A mutual fund

much as 4.7%

re¬

exceed last

ATOMIC

rela¬

all-time

through

Dspt. C

missiles

ingot production is expected to rise to 116.5 million tons compared
to 115.2 in 1956. The investment
company believes it likely that
"major integrated steel producers will report record profits and
dividend payments in 1957."

N. Y.

While

common

expected to remain

are

tively high plateau for the balance of calendar 1957."
In the auto
industry, passenger car sales for 1957
are
pre¬
dicted at around 6 million, up from 5.85 million last
year.
Steel

RESEARCH CORPORATION

turning
num

have been

the market

General

the fund during the fiscal year
ended Aug. 31, 1957, with total netassets up from $77,745,088 to $83,-

investing funds temporarily

out

also

Congress to contain the
bulge in Federal spending are cited, but the study reports that
defense spending, budgeted at $38 billion for the fiscal
year, has
been running at an annual rate of over $40 billion in recent
months.
In an attempt to
control military expenditures, the
forecast says "reductions are being effected in personnel, military

Uka/imof,

Development Securities Co., Inc.

Canada

reports

outlook for late '57 and early '58,

spending is spotlighted

fourth quarter rise.
pared

Atomic

Delaware has

securities in which

Activity to Set New Records

Business activity in

Broadway, New York 5,

Value Gain

all that."

has changed

money

He noted that Government agency

Co., Inc.

120

Assets, Share

But the 1956-57 bull market

cash.

Thursday, October 3, 1957

...

Canada General

ments,

(Special to The Financial Chronicle)

Santa Monica Boulevard.

Chronicle

Re¬

the

danger
has sub¬

galloping inflation
sided,
they
will
reverse
their
policy.
"In other words, the main thing
that is slowing up business is tight
money.
But, when the Federal
Reserve policy is reversed, as it
inevitably will be, money will
again be easy and business ac¬
tivity will again be on its way to
new highs."
Professor Rodgers, who

banking at New York

graduate

school

teaches

University's

business

ad-

The Commercial and

Number 5678

Volume 186

ministration,
said
the
U.
S.
economy this year—despite tight
money
—
has shown amazing
C. Graydon Rogers and Fred¬
strength and bounce.
erick E. Blum have been appointed
"And, looking further ahead," investment officers of Delaware
he
added,
"the
outlook
could Fund and Delaware Income Fund,
hardly be more rosy. The great
according to a recent announce¬
ability of our scientists in the ment
by W. Linton Nelson, Pres¬
field of research; the great ability
ident.

Personal

American

the

economy

(1489)

Financial^Chronicle

Progress

had

that

Horseman

taken

physician,

could
symptom of
every disease.
But an electronic
computer might conceivably do
just that. It might have stored in
its
memory
the
best
medical
of

course,

bring

President

Continental

told the

Corp.,

con¬

families

that

attendants

vention

Tri-

with incomes of more than $5,000

should invest some of their

a year

in stocks. But, he pointed

money

out, they should not go into debt
to invest.

stock,

corporate

Ownership

"provides

Randolph stressed,

Mr.

opportunity for growth of the cap¬
ital

investors,

individual

the

and it furnishes to some degree a

hedge against future currency de¬

preciation which seems to be a
problem of economies throughout
the world."

tions:

Radio

second

Communica¬

holds

that

area

appalling eruption
These propagandists
the

labor, and increase our leisure

time.
i

Automation

of
of

Weapon in the

as a

Cold

science-

fiction horrors of automation, are

it could apply promptly to a par¬

Board Pennsylvania's Wharton School.

Randolph,

see

panic, who harp

knowledge of the day—knowledge

Personal

F.
and

Francis
Chairman

trouble.

ticular
patient's symptoms and
capital; the great ability of
organization as a security analyst
come up
American management to utilize
with an accurate diag¬
in September, 1956. Mr. Blum is a
nosis. Or the computer, instead of
that capital boldly, imaginatively
more recent addition to the fund's
and soundly; and the great adaptbeing programmed to diagnose,
research staff.
;
could be programmed to forecast
ability of American labor to
Both men received their Mas¬ a
mechanization and automation, all
person's' life expectancy for in¬
ter's Degrees in Business Admin¬ surance
company records.
guarantee that the best is yet to
istration from tho University of
come."
create

Apocalypse.

it as an ominous
agent of doom and gloom that will

remember every

ever

the

They claim to

joined the Delaware

Mr. Rogers

changes

portant
place.

War

national

our

ad¬

economy

force, there will
strangely
reminiscent
of
the inevitably be problems—the kinds
alarmists of the Nineteenth Cen¬ of problems that have always ac¬
tury. Those misguided zealots, you companied technological change.
will recall, stoned factories be¬ But
one
of
America's
greatest
cause one machine
promised to do sources of strength has been its
the work of 100 men.
However, ability to accommodate, and even
it
was
not
encourage,
technological
long
before
they to
learned that the machines actually change without changing its own
created many, many
more jobs basic emphasis on individual free¬
than they eliminated.
dom and human dignity.
1
Even in our own century we
Today this ability to adjust to
have seen violent reactions to de¬ economic change is more impor¬
justs to this

new

velopments that were significantly tant than ever because the new
new and progressive.
In my own Soviet strategy in the Cold War
premium
on
economic
field, I remember when radio puts a
With a tiny gadget about the size
broadcasting
came
along,
the weapons. Not that the Soviets are
of a pack of cigarettes, you will
Adams Express Company an¬
phonograph companies said, "Peo¬ renouncing their military might.
be able to carry on a conversation
nounced that the net asset value
ple want music when they want On the contrary, they are going
with
friends
or
business
asso¬
of
its 3,172,752 shares common ciates wherever you happen to be it. They'll never be content with all-out to enhance their military
posture, as evidenced
by their
any selections that radio stations
stock on Sept. 30,1957 is estimated —on the golf course, on a fishing
put on. Broadcasting will never claim of having successfully tested
at $26.58 per share compared with trip, or even on a transatlantic succeed." ■:
the
awesome
Intercontinental
Well,
not
only
has
flight. •
;
Ballistic Missile.
However, they
$30.36 per share at Dec. 31, 1956.
Your receiver will have a de¬ broadcasting succeeded but mil¬
lions more phonograph records now seem to be using this military
The asset value at Sept. 30, 1957 coding unit that will respond to
are
being sold today than were strength primarily to back up a
is after the payment of 35 cents only one of a million or more
new
ever sold before broadcasting was
strategy of "peaceful com¬
possible arrangements of pulses
per share in capital gains divi¬
established.
petition" proclaimed by Commun¬
sent out from a transmitter.
In
ist party boss Nikita Khrushchev*
dend in June 1957.
At Sept. 30, this
When talking pictures arrived,
way, you will be assured of r,
This strategy involves ideological,
1956 the asset value was $30 per cOmplete^privacy in your conver¬ the silent movie industry looked
down its multi-million-dollar nose political—and above all, economic
share. Capital gains dividends ag¬ sation, even\though you will be
—penetration and subversion.
on
the largest^ party line in the at the upstart. "Once the novelty
gregating $1.47 per share were
We have seen this new strategy
wears off," they prophesied, "this
world.
paid in the intervening 12 months.
will flop. People," they said, "go in Syria where Soviet promises
Voice
Controlled
Electronic
of military and economic aid and
to a movie for peace, quiet and
Systems: A third area of explora¬
Soviet exploitation of Arab re-?
illusion — not
for
distracting
tion involves voice
controlled
sound." Well, where are the silent sentments have brought the im¬
electronic systems.
Basic studies
placable menace of Communism
movies, today?
already have led to the develop¬
deep into the strategic Mideast!
When
television
emerged,
it
ment of a rudimentary phonetic
We
have
seen
it in
Indonesia
typewriter ;that can type a few faced the scorn of many people where the Communists recently
simple words and phrases spoken in the movie industry. They re¬ won a critical election triumph!
dent.
Recent studies show that into a microphone.
Through ex¬ ferred to it derisively as "that We have seen it in India, in Bur-?
peep-hole."
Well,
today
they are opening the way for periments with this system and little
ma,
in Cambodia and in other
picture
companies
are
major economies in personnel and further development of the novel motion
Asian outposts where Communist
floor space, eliminating file du¬
producing their products for tele¬
principles employed in it, we can
activity is ominously on the risei
plication, supplying management expect to achieve new and versa¬ vision and some of them are mak¬
If we are to counter this new
with up-to-date information, pro¬
tile systems capable of "under¬ ing more money from their sales strategy of "peaceful competition"
viding better administrative con-; standing" and carrying out verbal to television than they are from
successfully, our first and indis¬
their sales to
theatres.
Indeed,
trol, and offering more efficient orders.
•
:
pensable contribution to the Free
service to insurance policyholders.
The business man of the future some movie men have become so
World's security must be to keep
enamored
with
television
that
Computers have demonstrated may well dictate his inter-office
ourselves
economically
strong.
they would like to take it over
memos
and personal letters di¬
a capability for performing aston¬
Only if we are strong can we take
great promise for the future is
personal
radio
communications.

Closed-End News

Continued from page

Electronics
fed by tape

tions

on
We

recording.

that can be
at lull capacity from a control

run

refineries

oil

have

panel of moving dials and flash¬
ing lights. We have atomic proc¬
essing plants where
the entire

operation is in the hands of a few
women at a push-button console,
* While
the story of automation
in industry has captured the po¬

pular fancy and caught the bold
headlines, the story of automation
in the office is fully as fascinating

provocative

and

its

implica¬

Clerical work had grown to

tions.

staggering proportions that
government, too—
were
in danger of being buried
beneath their
own
paper.
Not

such

business—and

■

in our offices. For
they are completing in
hours certain file-maintenance

our

time.

reel of magnetic tape

single

information

much

held

ously

from tape

ally

with

battle

the

electronic

The

work.

paper

that

surface

Diagnosis:

areas

seem

likely to

give

One

the

in the

advances

computers
field

instructions

degrees," and so
on
—
activating controls which
cause each of these things to hap¬
72

instantly.
When the developments I have

pen

just outlined—and others that are
now in our laboratories — arrive
on
the market, they will effect
far-reaching
changes
in many
businesses. In insurance, it is not
unreasonable to envisage the day
with

tied

the

will be

offices

the

office

home

communications

through
that

branch

all

when

circuits

integral

part of

will

single

system.

computer

system will perform all the ac¬
counting operations within a firm.
Or the same kind of facilities—
with

smaller

able

computers—will be

handle decentralized

of other operations
to mention. Though

the

Digitized

to me, are as

familiar.

fallacious
do

ployment.

they

result

are

that

believe

not

automation will

in unem¬

On the contrary, I be¬

will

mean more

and better

We have the word of our most
eminent economists that the major

problem in the years ahead will
not be unemployment, but how to
stretch the labor force to keep

with our growing population
rising standard of living.

pace

and

our

During the next two decades, the

population of the United
is expected to increase by
two-filths. Over the same period,
the man-hours of labor will rise
total

States

by .only one-fifth. This means that
if we are to continue enjoying an
ever

higher standard of living, our

services must

output of goods, and

than the

increase far more

num¬

people producing them. The
answer to increased
productivity
will be found through automation.

ber of

Where mechanization tended to

the

worker

part

the

information

cardiogram, blood pressure, tem¬

miqe will simply press a button

insur¬

single

patient's age, fed into the system
in advance, would provide an ac¬
curate basis for comparison.
The
results could be made available
immediately.
Furthermore, this
permanent record could be fed
into a computer at the patient's
next visit to give the doctor an
instantaneous picture of the im¬

insurance
business, their substantial advant¬
for FRASER
ages are already becoming evi¬
to

bring widespread unemploy¬
These forecasts, it seems

ment.

imagination and judgment, that
automation never can duplicate.

required

medical

There,

too numerous
computers are

will

employe who wants some specific

examinations

standard

made in the

calcula¬

automation

that

companies.
A whole series
measurements,
such as, the

the

ment.

dividend

of despair

ance

now

dial

policy

your

The elec¬

code^ number.

com¬

very

predicting

ac¬

Insurance

piece of electronic equip¬
Prescribed norms for the

of electronic

their

it—"as

are

issue such lieve it
"disherwasher on," jobs..

"thermostat

for

Today the disciples

transmitter

pocket

care

policy records, which
occupy five or 10 floors of a
skyscraper office building, will
ultimately be condensed on a few
hundred reels of magnetic tape
and stored in a single room. An

■

use

is being

new

in
we

might picture the householder of
the future talking into a little

scratched. perature and blood count would
greatest over-all be recorded simultaneously on a

tion and distribution, and a host

relatively

computers
fanciful,

operation

business. To be really

insurance.

billing,

and

own."

machine, automation reverses the
process
and frees
man's work
from routine. It provides broader

given

of the

puters are at work handling pre¬
mium

electronic typewriter

make

market has barely been
.

that will

counting where that is preferred.

to diagnostic robots with
years of medical skill "built in."
Electronic
devices
will relieve
doctors of routine by performing
automatically many of the tests
way

1953,

the

these

stethoscope

revolution

computer
mil¬
lion. Last year, these sales reached
$175 million. This year they will
approach $300 million, and indica¬
are

the

is medicine.
Conventional instruments like the
of

One

sales amounted to a mere $25

tions

Medical

Electronic

by the mammoth com¬
puters that promise to make mole¬
hills out of mountains of paper.
as

still

opments are now under way that
appear certain to have a substan¬
tial impact in the years ahead.

bolized

recently

far,
pioneering

stage.
Let me tell you, briefly,
about three areas in which devel¬

in the office is dramatically sym¬

are

powerful new

offer business a

great as the accomplish¬
of industrial and commer¬

cial electronics have been so

growing complexity of the econ¬
omy has made; office work in¬
creasingly difficult and important.
Now electronics has come along
to

for the Future

The Prospects

Yet,

and Peace"

minutes.

in about three

ments

file

reading

at 3,000 words per sec¬
at which they could

finish Tolstoy's "War

total of

are

rate

ond—a

3,000,000 people—enough to popu¬
late a city the size of New York.
Yet even this number has not
been adequate, with conventional
office
machines, to handle our
clerical chores at a time when the

15 years to a

they

previ¬

was

dozens

And

shelves.

with the rise of paper work,
clerical
force
has
almost

doubled in

used

chines

government now pro¬
25-billion pieces of paper

calculating ma¬
to turn out in the
They are storing on a

with hand

girls
same

annually—enough end-to-end, ac¬
cording to the
Commission, to
reachdhe moon 13 times. To keep
up

rectly to

produce them phonetic¬
24
ally in response to his voice. We
procedures that once took a full may also look forward to the day
month.
They are processing in, when spoken instructions will be
one
hour as much work as 400, used to control the programming

the

duces

feats

ishing

instance,

long ago, the Hoover Commission
reported that in the past 40 years
the volume of government letters
had increased 60-fold.
It found
that

the Horizon

memory will be searched
lightning speed, and the desired
information will appear instantly

tronic

television-like

screen

the

for the exercise of his high¬
jobs calling
those human attributes, such

scope

est skills. It promises
for
as

The result is bound

Already
small

the

and

have seen, on a
what happens when

moves

office.

into the factory

Upgraded

dominate

Automation: Boon

to more resnnnsible

phase

Bane?

electronic

development
that I have been
di«cussmg has been pictured by
some

calamity

mas¬

scale,

automation

The Broader Implications of

fifth

criers

Fifth

pay.

Ultimately,
millions

will

free

and

hazardous

crease

work at high¬

automation

from

toil.

arduous

will

in¬

employment, reduce hours

Over the

has
In

its

been

the key
strength

productivity.

rising

efforts to continue—and to

our

accelerate—this
be

can

allies

our

years,

economic

America's

Until

rise,

automation

vital asset.

recently

able to

assume

fashion¬

was

the permanent in¬

feriority of Russia in industry
and
technology.
Now we hiave
learned that dictators can and dp
their ruthless power to force

use

last

the

ounce

strength

from

their people on

"crash" programs.
By these brutal methods of com¬
pulsion, the Soviet Union has
sharply increased its industrial
output and has achieved a posi¬
tion that endangers the survival

of freedom in the world.

for

It would be foolhardy

take

for

retain

granted

that

can

lead in automation un¬

our

less

we, are willing to make
all-out efforjt. Of course, the

in¬

Of1 'automation on a
scale
cannot
be accom¬

troduction
broad

plished without difficulties. But
the prime lesson that the Cold
War has etched in the mind and
seared in the soul of the Western
World is that

110

difficulties, how¬

imposing, are comparable to
the disaster of having free coun¬

ever

tries

swept
tide

Red
So

by the restless
conquest.

away

is, then, that automation
born of the latest

concept

—a

phase of electronic development—
has become critically important
to us and to our allies.
It offers
the stimulating prospect of great¬
wider industrializa¬
higher standard of living,
happier life. If
have the wisdom and the will

security,

tion,
and
we

their day, and assigned

stability among

abroad.
to

em¬

ployes have been liberated from
the
dreary
tasks
that used
to

employe's desk.

This

to be

sive upgrading of skills.

meaningful steps to promote eco¬
nomic

better and

face

to our opportunities,

electronics can broaden our
zons

beyond

contribute

immeasurably

prosperity we seek for
and for all

hori¬

all expectation and

mankind.

the

ourselves

(1490)

The Commercial and Financial Chronicle

The

Indications of Current
Business Activity

week
Latest

steel

Indicated

operations

of capacity)—■—— Oct.

6
b

§2,108,000

month ended

oil

condensate

and

Ago

(bbls.

101.8

2,073,000

2,506,000

6,821,250

6,788,500
7,970.000

28,546.000

27,999,000
1,725,000
12,407,000

27,341,000

12,378,000

Residual

oil

fuel

at-

(bbls.)

Sept
Sept. 20

—

ASSOCIATION OF AMERICAN RAILROADS:

freight loaded (number of

freight received from connections (no.

ENGINEERING

CONSTRUCTION

7,741,000

7,713,000

Natural

176.944,000

Crude

33,219,000

lt5.137,000
50,003,000

149,671,000
52,237,000

construction

55,183,000

/24,934

60^295

Private construction
Public

construction

State

and

municipal

Federal

—

COAL OUTPUT

——

(U. S. BUREAU

17,393

741,147

759,140

822,436

598,792

618,146

677,(,>87

$323,655,000

$436,495,000

$483,437,000

219,069.00')

162,766,000

303.314,000

26
26

155,886,000

109,586,000

273.729,000

131,380,000

92,121,000

224,456,000

17,465,000

49,273,000

25,214,000

24,000
34,416.000

25,000
32.294.000

212.997,000
22,773,000
53,000
29.606,000 1

—Li

and

stocks

16,010,000

251,896,000

*264.837.000

32,738,000

domestic

13,764,000

*39,402,006.

_/■

(barrels)—

INSTITUTE, INC.—Month

"262,235.000''
46,353,000

pounds)

—

grades

(tons

84,166

———

(tons of 2,000 pounds )„——
Stocks at end of period (tons)——_
Unfilled orders at end of period (tons)———

43,011,000

13.159,000

export

COAL

*85,779

89,549

81.049

*73,055

68,017

149,296

•146,179

104.307

28,296

55,769

43,120.000

34,760,000

43.907,006

2,30C.000

•1,486,000

2.699,000

31,663

132,112,000

24,506,000

235.623.000

230,696,000

23,228,000

Shipments

175,123,000

255,935.000

213,202.000

;

August:
2,000

$342,274,000
186,388,000

————————————

AMERICAN ZINC
.'•!

gal¬

(barrels)

Slat), zinc smelter output all

—

——

145.726,

195,126

236,454.000

consumption

(barrels

OUTPUT

(BUREAU OF MINES)—Month
August :
Bituminous coal and lignite (net tons)—
Pennsylvania anthracite (net tons)—

MINES):

145,174

192,856

(barrels)—

imports fbarrels)
product imports < barrels)

47,835,000

(barrels of 42

output (barrels)

oil

Indicated

ENGINEERING

—

Sept.
———-———-.——Sept.
Sept.
Sept.
Sept.

output

Refined

162,853,000

33,657,000
148,816,000

NEWS-RECORD:
Total

138.007

L_—

gasoline output

Benzol

171,897,000

36,001,000

.—Sept. 21
of

Ago

INSTITUTE—Month

domestic production

lons each)

Domestic crued oil

173,805.000

cars)—Sept. 21

cars)

Month

MINES):

(short tons) end of June

PETROLEUM

Increase all

Revenue

June:

Total

2,369,000

12,278,000
7,678,000

Revenue

CIVIL

2,340,000

Jb,335,000

• ^

(bbtol

vallate fuel oil

AMERICAN

8,041,000

gept. 20

(BUREAU

Production of primary aluminum in
the U.
(in short tons)—Month of June_

1,063,100

8,056,000

-®e[|

)

Year

Month

ALUMINUM

6.839,700
gallons each)
——•—®ept.
Crude runs to still&—daily average (bbls.)
117,830,000
-®epr
Gasoline output (bbls.)
28,212,000
——
"
Kerosene output (bbls.)
2,173,000
;
»«Pt
Distillate fuel oil output (bbls.)_
—
K 11,862,000
Residual fuel oil output (bbls.)
—-—
Sept. 20
7,820,000
Stocks at refineries, bulk terminals, in transit, m pipe lines—
Finished and unfinished gasoline (bbls.) at—
Sept. 20
174,058,000
(bbls

of that date?

are as

Ago

81.0

Stocks of aluminum

outputs-daily average

of quotations,

cases

Latest

•2,105,000

PCprnK^nf*

or,

either for the

are

Year

*82.2

production and other figures for th«

cover

Dates shown in first column

that date,

PETROLEUM INSTITUTE:

AMERICAN

Crude

month available.

Month

Week

g 82.4

-Oct.

(percent

Equivalent to—
Steel ingots and castings (net tons)

Week

STEEL INSTITUTE:

AMERICAN IRON AND

following statistical tabulations

latest week

Thursday, October 3, 1957

...

Bituminous coal

and lignite (tons)
anthracite (tons)

Pennsylvania

DEPARTMENT STORE

SALES

SYSTEM—1947-49
EDISON

ELECTRIC

Electric

output

FAILURES

Sept. 21

AVERAGE

10,065,000

10,100.000

9,950,000

10,050,000

-Sept. 21

INDEX—FEDERAL

533,000

556,000

527,000

658,000

*131

121

131

RESERVE

100

Sept. 21

120

EDISON

ELECTRIC

Kilowatt-hour

INSTITUTE:

Month

(in 000 kwh.)

Sept. 28

(COMMERCIAL AND

INDUSTRIAL)

DUN

—

11,697,000

11,991,000

12,147,000

11,365,000

Revenue

June

from

INSTITUTE—

sales

to, ultimate

(000's

;

ultimate

steel

278

287

262

Number

251

ultimate

customers

June

Pig iron

(per gross ton)

(per lb.)

Sept. 24
Sept. 24
Sept. 24

.—

——

Scrap steel (per gross ton)——
METAL

PRICES

Electrolytic

(E,

(St.

refinery at—,—

Louis)

$58.17

Sept. 25

26.550c
23.650c

25.675c

14.000c

13.800c

10.500c

14.000c

10.000c

13.500c

———Sept.
Sept.
Sept.
Sept.

PRICE8 DAILY

25
25

26.550c

28.025c

23.900c

39.675c

26.000c

93.500c

94.125c

93.750C

1—

—Oct.

86.44

86.59

87.35

89.51

89.92

99.36

94.12

102 96

91.77

Industrials

92.35
90.20

83.53

87.59

88.27

Oct.

89.23

90.34

91.34

91.62

82.65

Government Bonds

Oct.
;

—

Aa^'i-ii——

3.70

3.69

3.59

4.46

4.45

4.42

4.13

3.57

4.29

4.25

New

East St. Louis

York

(per

MOODY'S

—/*■»•■

;

——

COMMODITY

10.005c

3.67

Production

(tons)

Percentage of
Unfilled

(tons)

4.59

4.54

3.88

llAntimony, New

4.39

3.79

4.30

4.97

3.71

418.6

424.1

Antimony
Antimony
Platinum,
tCadmium,

endlBji^riod

OIL, PAINT AND DRUG REPOHraK'PRICE INDEX—
1949

AVERAGE

ROUND-LOT

100

•%.

TRANSACTIONS

ACCOUNT

Other

sales

465,246

504,557

110.30

447,297

110.20

sales

Total

the floor—

110.27

749,860

1,398.230

165,570

250,970

254,660

629,220

age (per pound)—:—:

1,073,470

768,610

1,452,010

1,328,130

990,360

MOTOR

1.037.390

•„

Sept.

252,170

23,910

30,950

215,170

■

Total

round-lot

Total

for

account

motor

PRICES

gept

Dollar
Odd-lot

—

563,983

549,285

;

short

customers'

other

value

sales

2,123,800

1,886.550

411,710
1,858.673

2,270,383

357,500
1,771,815

2,129,315

1,547,173

902.197

SERIES
(1947-49=100):

Meat

6,420 '

882.617

20,566

537,025

$43,287,604

9,427

862,051

$26,258,784
107,780

187,340

3.967

892,770
'

$35,934,534

foods

investment

one-half cent

244

243

239

241

255

288

183

263

270

1071780
7

349,370

195,760

—

products ./
ana

"other

than

fB_rS

187^340
674,400

195~760
585,600

163*360

Phfn

pound

219

246

221

260 >

250

152

457-

453

254

167

460

*
.

—

261

r
••

245

231

252

38(7

247

-251

(Number

Sept.

5,340,790

9,685,430

8,308,560

5,663,660

10,311,550

9,768,150

ASSOCIATION;
; .
i
,_i

•

*117.9

90.3

*91.0

105.9

—Sept. 24

*106.4

118.0
-

115.2

92.5"

93.2

95.5

98.0
125.6

122.6

§Based on new annual capacity of
tNumtter of orders not reported since

sold on delivered basis

133-.495.150

tons

introduction

at centers where freight from East St.

Louis exceeds

and

Bus

Inner
'

figure.

Exchange.

♦3.471,514

3 383,842
2.300,275

">6,417,536

37,815,000

35.953,000

'§6.727,000

36,629,000

tt33,44I,000

31,359,000

27,871,000

3,025,157
6,946,069

29.159-,000

25,192.000

•

6,287,227

...

—

the producers' quotation.
JBased on the average of the
quotations.
fAverage of quotation on special shares^vto plater.

Louis exceeds
mean

700,233

*•

3,708,280
2,941.262

—

tBased

platers'

St.

daily

'1172,304
I.

■•'

—

(Camelback)—

(pounds)

and

267,586

695,514

—

§30,939

278,717

219.905

634,910

(pounds)

from

East

>1.072,967
3.305,814

280,749

———

five tons

^,271,493

1,027.094

3,460,9^

^Domestic

age

•1,148,356

„

-fi.d26.122

3,219,093

Inventory
producers'

"14,088,177

993.987
r

•

(Number of)—

Rubber

•Revised

117,322,301

Production

91.1

125.8

^S.668,451

16,097.080

Shipments (pounds)

104 9

125.7

Tread

89(3

106.7

7,461.763

Inventory —_———a.
Passenger, Motorcycle; Truck

Inventory
117.7

•8,161.561

1,228,773

;

Shipments

174

23$

317

-7,449.072

—2

—

246
v

8,610,751

/_z:

—„

•

——

312

143

Production

Tubes

of)^—

————I
Truck and Bus Tires (Number of)r—
Shipments
—2

7,519,850

;

_——j:

287

155

—

_i-

Production

Inventory

297

—

—i

Production

425,850
7,094,000

°l f,orelgn crude
^S1S of 128-363;090 tons.-

194

216

;

—

459,590

+Prime Western Zinc

173
218

1_/

MANUFACTURERS
INC.—Month of July:

418,080

626,120

Md"loodsl——IlllZsept!

170
213

——

•

274

—

—:

eggs

Passenger Tires

163.360

322,870

.Sr.' it
-

—_

:
i,

—

Tractor-Implemeift Tires (Number of)-^-

*32? 1957rea«1?'°?^caIIel3

Monthly

_—247

—i

fresh———————

.l——

Shipments

.Sept.

——

DEPT.

429

July 15:-

Production

products

Meats

Inventory

R—*

All commodities

—

RUBBER

.681,540

$45,043,056

commodities-.

Processed

crops

animals

Poultry

Commodity Group—
All

Wool

o.,,*

*—~XL ~S.~

318

AGRICUL¬

———

Shipments

WH°bL.EDS^E PKICESLABOR—

65,827

264

685.507

Sept.

—T"

417,020

94.803

—_

Livestock

•

907,152

Sept.

503,276

495,918

87,392

INDEX

—

Oil-bearing

$51,297,168

TRANSACTIONS
MEMBERS (SHARES):

591,039

525,0,34

—

Fruit

Dairy
1,297.282

$65,612,799

ACCOUNT OF
Total round-lot sales—
Short sales

Farm

612,690

MANU¬

—

DEPT.

vegetables,

Food

1,653,603

1,344,558

Sonf-

dealers-!!"

Total sales

$2.25

$65,107,909

543,445

seSt

—IIZIIII

Feed," grains and hay
grains

340,840

1.312,763

781,484

Sent'

„

sales

64.500c

$2.25

273

Commercial

STOCK SALES ON THE
N. Y. STOCK
EXCHANGE AND ROUND-LOT
STOCK

Other

74.000c

$2.25

August:.

FARMERS

—

Tobacco

Sept

TOTAL ROUND-LOT
FOR

34.694c

74.000c

24.669c

FROM

;

Round-lot purchases by
Number of shares

3B.250C

—

products—

Potatoes

Sent'

—

Crops

■

447,813

$36,566,145

sales

Round-lot sales by dealers—
Number of shares—Total
sales
Short sales

§6.69flc

2p.000c

35.250c

Cotton

1,247,760

.Sept.

(customers' sales)
orders—Customers' total sales—

farm

value

Other

359, J 23

EXCHANGE COMMISSION:
(customers' purchases)—t

by dealers

$2.6000()

27.100c

25.986c

coaches^

TURE—1910-1911.== 100—As
All

SECURITIES

Customers'
Dollar

468,745

241,040

purchases by dealers

Number of

434,193

1,123,510

3eut

sales

EXCHANGE

Number

88,690

1,006,720

sales

304.553

80,540

249,410

STOCK TRANSACTIONS FOR
ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON N. Y. STOCK

Odd-lot

396,140

129,790

members—

Short sales
Other
Total

473.400

51,560

———aept.

RECEIVED

NUMBER —U.

235,850

gepk

300,970

purchases

$2.00000

185,030

215,430

28.08Ga

—

30,400

229.609

251,900

Sept

—

Number

22,300

223,440

-$1.70000
-

S.—AUTOMOTIVE

ASSN.—Month

of vehicles-

$1.70000

$2.00000

—_

passenger cars
motor trucks—/—.

254,390

"I.
transactions

$104,037
$1.70000

——-

SALES

FACTORY

128,090

Short sales

number

$1.70000

;

Number

152,000

transactions initiated off the floor—
Total purchases
!

——

FACTURERS'
Total

$90,154
$1.70000
$1.70000

—_

Number

~Sept!

;

Other

Total sales

VEHICLE

33.500c

aver¬

(per pound)-

PLANTS

33.000c

$1.70000

—

205.230

III_—Sept!

sales

Total sales

137,800

Sept!

$84,000

36.470c

33.000c
33.500c

33.500c

—

Aluminum, 99^ grade primary pig
Magnesium ingot (pep pound)

221,750

1,201.040

794,790

1,275,240

$255,000

36.590c
{

$1.70000

••Nickel

Sept.
Sept.

$254,308

33.000c

pound)-i-I:

Bismuth

$35,000

I)8.944c

$1.70009

(per

108.99

96.538c

$35,000

36.590c

Cobalt, 971c grade
1—
J.
Aluminum, 99',o grade ingot weighted

purchases
Short sales

94.218c

pound)

434,900

78.773d

$2.78306

$251,111

ounce)

pound)

(per

gCadinium

252,534

Sept".

;

transactions initiated

Other

272,890

Sept.

Short sales
Total

289,054

78.125a

$2.78783

—

(per

§0.614'c

90.280c

78.750d

pound), bulk Laredo—
(per pound), boxed Laredo—1
(per

£94.017

York boxed-

refined

£73.745

90.909c

(per

refined

f4.000c
£95.597

$2.78274

price)—

tCadmium

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:
Transactions of ;specialists in stocks in
which registered—
Total purchases _J

Other

299,482

Sept. 27

—

FOR

263,400

296,404

Sept. 21

401.6

ounce,

10.505c

£75.152

£73.688

Quicksilver (per flask of 76 pounds)-

4.47

Gold

4.59

;

activity

orders

3.78

4.15

(per

13.500c

10.500c

£73.893

$35,000

4.40

4.90

265,697

f6.000c

.„10.000C

4.44

392.8

-Wot Avail.

14.000c

15.800c

4.95

259,955

£219.587

14.000c

£114.489

4.32

£210.631

£91.247

4.47

Oct.

39.G25C

37.667c
Not Avail,

pound)

(per

28.690c
26.727c
£217.549

£92.012

Sept. 21
Sept. 21
Sept. 21

£116.063

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

28.098c
25.694c

13.800c

INDEX

£90.614

Oct.

231,900

13.800c

Oct.

—

■—

215,000

£91.726

.—-Oct.

Group

6,400
159,100

£208.613

pound)—

4.98

Group

—

4.45

Industrials

20.200

8,200

157,000'

206,400

ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)
Silver and Sterling Exchange—
Silver, New York (per ounce)—
Silver, London (per ounce)™————
Sterling Exchange (check)————
Tin, New York Straits-

3.79

4.13

Oct.

Railroad Group
Public Utilities

9.800

(per long ton)
(per pound)—East St. Louis
§§Zine, Prime Western, delivered (per pound)

3.13

Oct.

—

10.900

134,200

Zinc

97.94

4.12

corporate

72,00Q

ttThree months, London

100.65

87.59

MOODY'S BOND YIELD DAILY AVERAGES:

Average

14,§00

—

QUOTATIONS)—

(per pound)

Common,

99.36

Oct.

54,000

ttPrompt, London (per long ton)

93.82

Oct,

Group

Common,

99.52

82.90

60,000

Lead.—

101.31

89.64

82.52
Public Utilities

91.77

89.51

<■

Export refinery (per pound)
t(London, prompt (per long ton)—.
ttThree months, London (per long ton)

92.05

89.37
94.26

Railroad Group

|
':

August:

104.250c

—,—Oct.

corporate

(E.

Domestic refinery

AVERAGES:

Government Bonds

Average

PRICES

•

Copper—

25.000c

METAL

$709,821,000
53/236,457

(units)

Domestic gas range shipments (units)—
Gas water heater shipments (units)—

15.800c

—

shipments

54,428,374

Gas conversion burner shipments
(units)—-■
Gas-fired boiler shipments (units)

16.000c

13.800c

furnace

•

$746,672,000

;

Gas-fired

>V.- '■

54,559,745

30—

37.27oc

14.000c

Sept. 25

(delivered);at

MOODY'S BOND
S.

5.G22C
$63.04

$51.50

Sept. 25
.-Sept. 25

——-----

Zinc (East St. Louis) at
Aluminum (primary pig. 99c/o)
Straits tin (New York) at

5.967c

$66.42

$46.67

(t*: ':q.

copper—

Domestic

tZinc

5.967c

$66.42

$43.83

"-Jr

•

$758,054,000

GAS APPLIANCE MANUFACTURERS ASSOCIATION—Month of July:
'

QUOTATIONS):

Export refinery at—
Lead (New York) at
Lead

5.967c
$66.42

:■■■i

'43.157,287

IRON AGE COMPOSITE PRICES:
Finished

/.•

•

45,353,450

customers—month ,of

June

Sept. 26

'.c';;---

omitted)—45,613,472
——

BRADSTREET, INC.

v/I.-'I ''-Wr-

/■;.

consumers—-

and

bid

but

0.5c.

and

^Corrected figure.

less

than

♦•F.o.b.

ask

carload
Fort

quotation

lot

boxed.-

Colburne, U.
at

morning

§§Delivered'where freight
S.

duty included.Aver

session

of
,

London

Metal

„

Volume 18S-

The Commercial and Financial Chronicle

Number 5678

(1491)

Continued

from

page

Joins Chas. A. Day
(Special to The Financial Chronicle)

BOSTON, Mass.—Roland J. Castonguay has joined the staff oi

Dealer-Broker Investment
Southern

the

$5.52

common

re-i faster

service, Southern has

least

the

third

the

best

also

Earnings
months

the

for

has

program
with

eight

first

this year

latest

the

electronic

devices

installed., This has done much to

amounted

completed an extensive
of yard modernization,

share, more than expedite the movement of traffic
dividend and to supply better service to
payments of $2.80 a share. Earn¬ shippers. V
ings in the like period of 1956
Southern is serving a territory
amounted to $3.57 a share; ,'
which is growing in population
and industry.
Most of the plants
Traffic in the past month has
not lived up to expectations, ac-; in thejy territory
served are new
$3.08

common

covering the full year's

CHICAGO, 111.—Kieth F. Kurzka

Northwest

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

has become connected

officials. In
carloadings;
were off 6% from a year ago.
On
the other hand tonnage was only,

arid modern which makes

down

growth

company

month

the

of August,

Street.

3.3%,

tonnage

This indicates larger

per

reflect

not

Pictures—Report—David G. Means, 6 State Street,

With Reynolds & Co.

Bangor, Maine.

(Special to The Financial Chronicle)

J. C. Penney Co.—Memorandum—Dean Witter &

Ranco,
York

Co., 45 Mont¬

CHICAGO, IB. —Edward N.

Street, San Francisco 6, Calif.

gomery

Murray is now affiliated with
Reynolds & Co., 39 South La Salle

Inc.—Data—Joseph Faroll & Co., 29 Broadway, New
6, N. Y. Also in tjie same issue are data on Manning,

Maxwell

Street.

Moore.

Schering Corporation—Report—Vilas & Hickey, 26 Broadway,
New York 4, N. Y.

DIVIDEND NOTICES

Sylvanite Gold—Report—Singer, Bean & Mackie, Inc., 40 Ex¬
change Place, New York 5, N. Y.

TEXAS TOY

Universal Products Company

Inc.—Analysis—Blair & Co., In¬
corporated, 20 Broad Street, New York 5, N. Y.

per

have

along

with

•'

With Daniel Weston

(Special to The Financial Chronicle)

BEVERLY

HILLS,

car.

Calif.—Ray-!

might be noted
six

months

Southern

this

10,700

cars

year ago,

but

pulpwood

•

the

DIVIDEND

—

Southern
most

ANGELES,

Calif.

SAN

—

Halle & Stieglitz, 52

freight
felt

not

Fairman

rates.

Joins

increasing

management

The

that to meet

maintain

follow along
in

rails

Two With Scherck, Richter

Stock Dividend

The Board of Directors of Nor¬

joined the staff of Scherck,
Co., 320 North Fourth St.

DIVIDEND NOTICES

—

ATCHISON, TOPEKA AND
SANTA FE RAILWAY COMPANY
New

DIVIDEND NOTICES

Yale

members

it should

LOS ANGELES,

C^.. Bowers

has

The

N. Y., September 24, 1957.
Directors has this day declared

York,

Board

of
Thirty Cents (30c)
per
share
being Dividend No. 183, on the Common Capita
Stock
of
this Company,
payable December 9,
1957, to holders of said Common Capital Stock
registered on the books of the Company at the

regular quarterly dividend

business

October

25,

1957.
SWEARING-EN,

R.
120

share has been declared

of 30c per

Broadway,

of commodities on
which this railroad did not apply
the higher rates. This was done,
an

was

feared

v/ould have priced

market
other

and

them out of the
income.

reduced

commodities

increased

rates

that

the

Southern

by about 4%

and

SAN DIEGO,

?fp||WW Electrical and

products

Modern furniture

was

formerly with J. D. Cregar &

WORLD-WIDE BANKING

the

individual

£D
•CHARTERS

Knows items in

LaCoe at MUrray Hill

ELEVATOR
COMPANY

Common Dividend No. 204

quarterly dividend of $.50

per

the Common Stock has

declared, payable October

October 4, 1957.

submitted.

Checks will be mailed.

dividend of 60c per

The

H. R. Fardwell, Treasurer

payable Novem¬

New

York, September 25, 1957.

1957 to holders of record at

the close of business October

THE

books

transfer

15,1957.

will

not

closed in connection with the pay¬
ment

Manhattan

through direct wholesale sources to suit

Samples

ber 15,

1799*'

Chase

Christmas gifts for organi¬

busy executives.

requirements.

Oetjen, President

25, 1957, to stockholders of recat the close of business on

share on
13,090,000 shares of the capital
a

stock of the Bank,

Young lady with discriminating taste and backlog of ex¬

ranges

value Common

ord

UNUSUAL

price

no par

Railway

been

N 0TICE

DIVIDEND

the

all

Southern

share
'

clared

Commission for

OTIS

The Chase Manhattan Bank has de¬

zation, corporations

Company's

JOHN R. HENRY, Secretary

Co.

perience will buy distinctive

approval of the In¬

be mailed.

Calif.—H. Stephen

Norfolk

STOCK

King has been added to the staff
of Eastman Dillon, Union Securi¬
Co., 415 Laurel Street.

September 24, 1957 a quarterly divi¬
dend of fifty cents per share was declared on
the Common Stock of this Company, payable
November 15, 1957 to Stockholders of rec¬
ord at the close of business October 24, 1957.
Transfer books will remain open. Checks will

ixsxftMurray Mi"'N*J*
electronic

the close

the issuance of additional

ties

December 2, 1957,

terstate Commerce

'V.VS/S?,

DAYflROMJnc.

(Special to The Financial Chronicle)

official of the company stated,

because

contingent

CAN COMPANY
COMMON

Eastman Dillon Adds

of business

AMERICAN

affiliated

some specific rates on
with E. F. Hutton & Company, 623
competitive tonnage.
When
the South
Spring Street. He was for¬
freight rate increase was granted
merly
with Shearson, Hammill
by the Interstate Commerce Com¬ & Co.
;
mission
in
August,
there were

stockholders of record

Henry

of record October 28th.

ers

Railway Company
5% Stock Dividend,
December 20, 1957, to

Stock for that purpose.

hold down

about 45 groups

Inc. Checks will be
mailed November 15 to sharehold¬
by Daystrom,

Calif.—William

Treasurer.

York

New

Southern

payable

dividend

the

Hutton

become

folk

declared

THE

Co., 210 West Sev¬

RAILWAY COMPANY

ham & Co. and Hooker & Fay.

Richard C.

—

NORFOLK SOUTHERN

Building. He

previously with Harris, Up-

was

(Special to The Financial Chronicle)

LOUIS, Mo.

PrestonAve^JtJouston, Texas

Calif.—Jo¬

FRANCISCO,

Denault & Co., Russ

ST.

stock

1711

Richter

(Special to The Financial Chronicle)

competition and

its traffic that

mon

seph J. Bava is now affiliated with

added to the staff

Levin has been
of

Calif.

of
Pacific Coast Stock Exchange.

cars.

did

quarterly stock divi¬
2% per share on com¬
payable October 31,
1957, to public stockholders of
record, October 15, 1957.
te^asItoy company
a

dend of

Assistant

with

clared

(Special to The Financial Chronicle)

(Special, to The Financial Chronicle)

...LOS

fleet enth ^Street,

new

The Board of Directors has de¬

Buhl

Joins Denault Staff

Financial Chronicle)

John
Halpin is now with Jonathan &
Co., 6399 Wilshire Boulevard.

have

With Fairman & Co.

larger capacity of

>«.'

from

the other hand
the actual volume of pulpwood
increased 135,000 tons, due to the
a

year,

pulpwood

Railway's

traffic decreased

the

that

Co.,

Bimson Jr. and James B. Scribner

Wilshire Boulevard.

9235

toViiE

(Special

observe carloadings

/as

Roney

—

Jonathan Adds

the

jof the territory served.

Two

drop

business,

first

Analysis
Wall Street, New York 5, N. Y.
~

for ef¬

In this respect of¬
mond E.
Bruce
and Roscoe W.
do not
Holloway have become connected
always reflect the actual volume
with Daniel D. Weston & Co., Inc.,
nage

Building, Detroit 26, Mfqh.
Youngstown Sheet & Tube

LOS

in loadings is
being partly offset by larger ton¬

ficials

Inc.—Memorandum—Wm.

Yard-Man

The road is be¬
long-term expan¬

possibilities

traffic

actual

the

The

moved.

Carloadings

car.

sion

Big Piney Oil & Gas.
Paramount

ficient operation.
lieved

with F. S.

Moseley & Co., 135 South La Salle

cording to

to Staff

(Special to The Financial Chronicle)

Co., 40 Wall Street, New York 5, N. Y.

carrier's history.

Moseley Adds

Molybdenum Corp. of America—Memorandum—Brukenfeld &

em¬

ported in 1956. This was a record barked On a comprehensive pro¬
year for the company and com¬ gram, of equipment and mainte¬
pared with $5.39 a common share nance of way rehabilitation.
It
reported in 1955. In any event, was one of the first large major
it is likely that 1957 results will carriers to be fully dieselized.
It
be

A. Day & Co. Inc., Wash¬
ington at Court Street, members
of the Boston Stock Exchange.

Recommendations & Literature

Railway

Southern Railway this probably will yield an addi¬
Co.
have
been
running behind tional $5 million annually in gross
those of last year. However, it has- revenues. Southern is in a highly
been officially estimated that if: competitive district, not only from
fourth quarter results should show other railroads but also truck and
improvement, earnings for the full waterways.
In order to provide better and
year 1957 will not be far behind

Earnings

Chas.

••••••••••,

of this dividend.
MORTIMER J. PALMER

;

pacific

Vice President and Secretary

BANK

FINANCE CORPORATION

Mrs.

•

DIVIDEND NOTICE

5-5913.
sS.yS/SSSS/A

Sept. 25, 1957, the

Board of Directors declared

The DIAMOND

76!h

MATCH COMPANY

construction

planner with wide experience in
at

executive

level

—

Seven

of 45c per share on

resume upon

planning and

construction

—

request. Box C912, "Commercial &

Chronicle," 25 Park Place, New York 7, N. Y.

of The Diamond Match Company

are

1100 par value
5% Series

^GROWING

FOR THE FUTURE
x
^y//^a'3v3,wv;cv;,;v.v.v.7,av,v/^vv'wwx'xv.v.v^v.'wiv.vv.v.v.,v.vv.v.v.v.v.v.

•

PULP PRODUCTS

•

LUMBER

•

Fund Series

11-1-57

$0.29%

and Treasurer

•

$1.25

$25 par value
4%% Sinking

/m%w.v.v.'.v.v.'/.v,v.v.

'
a. c.

MATCHES

11-1-57

Preferred Stock,
,

October 7,1957

Financial

Preferred Stock,
.

payable November 1,

PERRY S. WOODBURY^ Secre/cry

Per

able

Preferred Stock.

1957 to stockholders of record

complete

Rate

Pay¬

quarterly dividend of 37Vic per

the $1.50 Cumulative

Both dividends

ing industry—Desires permanent connection in responsible
to

stockholders or record
Oct. 15, 1957, as follows:

^l!!

quarterly dividend
the Common Stock. At the same meeting the

Board also declared

years

university training plus twenty years experience in build¬

allied

DIVIDENDS

September 26,1957, declared a regular

position

The Board of Directors
on

building

CONSECUTIVE YEAH

Date

AVAILABLE
Town, planner and site

regular quarterly dividends
on Preferred
Stock of this
corporation, payable to

BUILDING SUPPLIES ♦ WOODENWARE

Reynolds,

Secretary

•••••••••••••••••••

The Commercial and Financial Chronicle

Thursday, October 3, 1957

...

(1492)
research for small

tribution

BUSINESS BUZZ

Before

business.
was

businessmen

Washington...
A
JLjLb wtA/

Behind • the - Scene Interpretation*
from the Nation'*

Capital

that

inter

fine,

was

da?

the smaN
grumbling

were

while

first

the

most

over,

esting and highly-organized

talk abol

they wanted to

fair,

tax cuts.

\ £~\ ¥ B

X Cr IX

They

told

were

they

that

needed to devote more time and

to research, and to take

money

advantage of the research*-

C. —The

WASHINGTON.

bill, designed to re¬
government controls over
thousands
of independent

natural gas
duce

the

producers, is lading
the list of measures

predicts a victory—by a narrow
margin.
Other impartial sources are

being conducted by the govern¬
ment and by the larger firms.

not

"but where the heck do

natural gas

tar

down

"Sure,"

sure.

briefly would bring

bill

The

the

independent
from

sponsored by Reps.
Harris, D., Ark., and Joseph
bill,

The

Oren

Minn., was ap¬
proved by the House Commerce
Committee
by
a
slim
15-13
margin in the closing days of
P.

R.,

O'Hara,

It was

the session this summer.

cleared for

floor vote by the

Committee—by

House Rules

Harris, decided not to try to
"bring it un at the last minute
with
the heat of civil rights,
foreign aid and other contro¬
versies causing tempers to flare.
Several polls

taken be¬
made, and

were

anywhere from 15

the House by

bet

safe

pretty

is considered a

votes.

could R5ss

showed that it

most

pass

West¬

reaches the Senate, where

gas-producing, states have
the power to force it by the
balky Eastern consuming areas,
Opponents, from such areas as

York, the New

New

Michigan,

England states, Illinois and
other mid-Western areas, have
the

recess

during

overtime

working

been

border¬

convince

who agreed to

line Congressmen

would

along last year that it

political suicide to back an

alleged "consumer gouge" meas¬
ure

in the election year

of 1958.

They are showing these
wavering Congressmen that the

unions,

host of northern lib¬
both
parties, and a

erals

of 30 mayoi's of leading
going to bit¬
terly oppose the measure this
fall. They will claim its pas¬
sage would cost consumers more
than a billion dollars a year in

group

regard to costs, and subject un¬
der certain conditions to FPC

1956 passed a
bill, exempting
independent producers from any
type of government control, "
President EisenJioWET, although

backers

will

them

cost

votes before Congress re¬

some

next January 7.

convenes

Enlist Aid of Coal Interests
In order to make up for

these

the backers of the
trying to work out
deal with the coal producers

lost

votes,

are

measure

and

Congressmen

regions.

producing
the

interests

coal

coal
Previously,
r o m

have

that

lines be removed.
*

sign

would

indicated

the

coal

work

out

which

gas

While

the

producers

gas

busily attempting to get Con¬
to remove the present tight
government controls, they are
also working through the courts
to win relief.
Independent gas
producers were not subject to
federal controls until 1954, when

Court in the
ruled that the Nat¬

S. Supreme

the U.

Phillips

case

make

did

Act

ural. Gas

these

subject to the same
kind of FPC controls that pipe¬
wildcatters

pipeline-producers had

lines and

Now,

of 10 independ¬

group

seeking a court
intrepretation of the 1954 deci¬

ent producers are

sion.

Destined for Supreme Court

attempt

court,"

mission

control

over

rect industrial sales

nat¬

these

di¬

by pipelines.

If this compromise is finally
to, the gas producers
may pick
up some votes from

the

out from under
They are chal¬

get

mention firms

which have only

wells,

not

and

facilities.

any

other

or
(

picture

interests,
loose

but they

the

are

support of

powerful pipeline interests.

increasingly large number

issue will have

who believe the
to be. settled

place

finally in the
U.

arose—the

Court.

same

they

And

optimistic

overly

Su¬

aren't

their

about

chances there, either.

from
off

billion

the

cold facts

ings

that the real

are

for

budget, the

tax

sav¬

small.
Many
of the curtailed appropriations
will have to be replaced later,
pretty

were

many

and

otherwise

ment

least

aircraft

pro¬

other

and

level

year

House

sional

the

face

economy

billion

the

set

ever

election

overflowing,

works

programs,

bills

full

wiil

hope

public

social security

is bleak for

reduction

spending.
any

;

same

the

into

ran

Some

1,-

small

some

operators and some big by any¬

ington

for the

ference

substantial in-

they

frustration.

businessmen,

body's standards,

gov¬

for

increasingly

came

scared

and

President's

technical

and

dis-

behind

the

footwork

before

nance

there

with

money

some

which

the

outcome

negotiations, the' gas bill
is certain to loose strength by
these

Rep. Harris says pri¬
vately that the bill will come up
for a vote early in the 1953 ses¬
next year.

before the opposition has
had time to consolidate, and he
sion,

Official Year
2—Thomas
(Publishers),

Volume

Skinner

Street,

Co.

Old Broad

London; New York Of¬

fice 111 Broadway,

N. Y.—$33.00
volumes

New York 6,

for the two annual

(not sold separately).

TRADING MARKETS

Campbell Co. Com.

Morgan Engineering
National Co.

cut.

1957,

United States Envelope

Carl Marks

& Co. Inc.

FOREIGN

Latest estimates of the Eisen¬

Riverside Cement

Flagg Utica

Whatever

(paper).
Stock Exchange

Fashion Park

are

to, fi¬

Development Cor-

Indian Head Mills

fancy

will

—

poration for Israel, 215 Fourth
Avenue, New York 3, N. Y.

Botany Mills

popu¬

scenes

going to have to do

Keyserling

A. S.

runningpoliticians. But the fiscal

experts

Keyserling and Mary Dublin

con¬

for

song

rade

Israel's Progress—Leon

Speeding

to Wash¬

shaping up for control of Con¬
gress
next year, tax cuts will
theme

time. So

Inc., 330 West 42nd Street, New
York 36, N. Y. (cloth), $7.00. ,

Ltd., Gresham House,

000

outlook

dangled

some

and Wilbur B. Eng¬
land—McGraw-Hill Book Co.,

Book

the

possibility of

cut

Two weeks ago,

shrink, the budget.

further

tax

David

Brown,

Leighton,

far, they've just been led around
on
a
treadmill, never able to

rather

Thus the

Marketing—2nd Edi¬

quite get a bite.

run

increases, and similar measures,
which will tend to balloon,
than

ton

front of them for

The pork barrel

lor

the

of Labor, 341
York 1,

New

Avenue,

tion—Malcolm P. McNair, Mil¬

the

politicians

the last few years, have had the

pressures

business firms,

—

Y., 40 cents.

believe, will be a good way to
ease inflationary pressures.
darlings

—

Young Workers—

for

S. Department

Problems in

Administra¬

Fiscal Footwork

Fancy
With

Some

year

home.

back

A Photographic Review

—

Ninth

Small
;

plenty of presents for the

folks

help

the

red, will be under stronger than

any

Need

;

$3.25

Procedures,

Office of Technical Serv¬

Guide

Job

industrial produc-

Eisenhower

Tech¬
Radio¬

$1.00 per year.

mate¬

tion, in its recently-issued mid¬
year review of the 1958 budget,
again made it plain that it will
use a
good-sized chunk of any
surplus to reduce the tremend¬
ous
national debt.
This, they

addition, the lawmakers,
while facing the prospect of hav¬
ing to further slice government
spending if a tax cut is to be
in

other

"Italia," 56 Via Vittorio Veneto,
Rome, Italy—20 cents per copy;

Small Business Woes

congres¬

going

some

The

sentiment.

without

Italy

equal

White

financed

metal

Vol.

ices, Washington, D. C.

are

for

$4.00;

chemical
U.

tion.

From Constituents

Pressure

expensive

much

restrict

equipment, the Pentagon is hav¬
ing a tough time keeping ex¬
penditures to the $38

missiles

While

Jr.—in two volumes,

Radiochemical

niques,

rials, which will further tend to

procurement stretch¬

missiles

ysis—L, J. Beaufait, Jr. and H.
R. Lukens,

little.

striking strength as planes, they
do not require anywhere near

despite deep cuts in mili¬

manpower,

slip

Vol.

around.

govern¬

revenues.

And

Handbook of Radiochemical Anal¬

addition, the switch from
manned military aircraft to
guided missiles will also actu¬
ally
mean
less
work
to
go

were

increase

will

New

Ninth Avenue,
N. Y., 25 cents.

York 1,

offset
by failure to raise postal rates
of them

revenues

Department of La¬

341

bor,

belt-tightening

mean

1955—u.

lot of industries, and thus

Class of

Women Graduates,

until recently to $38 bil¬

year

lion—will

billion

$6.5

from

—

Employment After College: Report

annual rate of about $40 billion

Democrats

Eisenhower

for the
Reductions

in defense spending

which

year,

claimed to have pared anywhere

ernment

Will

Cuts

Tax

any

Victory Forecast"*

this

Congressional^

darkens for the producers, there
is

Association, Bowen Build¬

outlook

the

revenues,

anything but cheery

tax-cut bandwagon.

Despite all the whooping and
shouting

vote

Congressional

the

operate

processing,

pipelines,

lar

other

in the Tenth Circuit
-Court of Appeals at Denver the
FPC's jurisdiction on the
grounds that the Supreme Court
ruling covered an integrated in¬
dependent producer, but did not

become

coal

nine

"friends of the

lenging

agreed
the

Oil

Fig¬

Consumer Fi¬

National

—

nance

crease

ex¬

pected in January.

grams, and

case

Saturn

with
as

control.

FPC

]

certain

the

Co.,

Gas

test

Facts

Finance

Consumer

above

60 cents.

lion, "$300 million less than

outs

the

for

birthmark

kneecap do?"

ing, Washington 5, D. C. (paper),

tary

Vehicle

Would

ures

and

operate under.

—

are

gress

ural gas

bill would be ^mended
give the Federal Power Com¬

"Identification?

form.

compromise, under
Harris-O'Hara

the

Bookshelf

the

pending Harris-O'Hara bill if it
is passed in about the present

preme

producers and
interests are trying to

the

Now,

the best of them.

Man's

ing incident involving Sen. Case,
R.. S. Dak.
The President has

fought

the
present provisions of the Nat¬
ural Gas Act exempting direct
sales of natural gas to industrial
consumers
by interstate pipe¬
demanding

bill,

the

firms

researching

Business

saying he Upheld the principles
of
the measure, vetoed it be¬
cause" of the now-famous lobby¬

firms entered

activities,
admit,

bill

the

Favored by Eisenhower

Congress in
much stronger

and

higher gas rates.
These

review.

northern cities, are

the

government

small

[This column is intended to refleet the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

sonable" market

ern

the

taxes,

business with

field price" or a "rea¬
price, without

"going

cut

would

the

charge

instead

remark

equally slim margin—but House
Speaker Sam Rayburn, D., from
gas-wealthy Texas, and
Rep.

fore the decisionwas

would

based on
cost plus fair return. If the bill
is passed, producers would be
allowed

that

was

type of rate controls,

under the present utility-

get

standard

almost

producers out

gas

likely to pass in Congress next
year.

agreed,

conferee

one

money?"

SECURITIES SPECIALISTS

•

20 BROAD

hower Administration show that
an

expected

rise

federal

STREET

•

NEW YORK 5. N. Y.

TEL: HANOVER 2-0050

TELETYPE NY

1-971

LERNER & CO.
Investment

spending, and

dip in reve¬
the expected

some

has pared
budget surplus for

nues,

fiscal

year

the

weak

current '

$1.5 bil-

■'i'AiWfirii-n.iV., ','i<i '*ii

•.A_i

\r-.r~

*■'i&rk-'• v-«'4 '■

'V.■

•

Securities

10 Post Office Square.
Telephone

HUbbard 2-1990

Boston 9, Mass
Teletyp#
BS «P