Full text of Commercial and Financial Chronicle : October 6, 1955, Vol. 182, No. 5470, Section 1

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BANKERS ASSOCIATION CONVENTION

ISS$E,6h.gan In 2 Sections
—Section 1

,nrr

OCT 12

Volume

Number 5470

182

New York 7, N. Y., Thursday, October 6, 1955

...

Price 40

*

V

Cents

Copy

a

v;."

EDITORIAL

1956 Will Be

We See It

As

ABA Holds 81st Convention

Year

a

Meeting held in Chicago, 111., from Sept. 25 through
Sept. 28. Fred F. Florence, President of the Republic
National Bank of Dallas, Texas, succeeds Homer J.

0! Normal Growth

The IJlness
rather basic

of the President has brought two
questions forcibly to the attention of

thoughtful observers of the business

By ALLYN P. EVANS*

One

scene.

New

degree in which con¬
fidence in the national government—confidence,
that is, in its friendliness and competence rather
than in its disposition or ability to interfere di¬
rectly in order to maintain full employmentmay act as fuel to keep the business 'machine
going. The other is this: Measured in actual legis¬

of President

greatly different
would

a

was

headed,

had

Democratic

of "normal growth." Says we have
"civilian boom," not dependent on Federal spend¬

regime
September

seems

specific answers to such questions
acceptable to all or even the vast
majority of men are not possible, but it is of in¬
terest to speculate about them. In the first place,
it may be said without fear of contradiction (to
employ a phrase dear to the hearts of the politi¬
cians) that, right or wrong, the business com¬
munity, particularly perhaps the financial com¬
munity, has grown to regard President Eisen¬
hower and those he has gathered around him as

id^tail

have

we

p

Bankers

Convention

the

28,

others, I

among

sense

a

Securities
telephone:

its

Hilton

before

and,

Fred

elected

adjournment,

F.

our

general

period of good business
enjoying is on the

been

should take to their storm cellars

Aiiyn

p.

Evans

.

their hatches.

down

that this is

men, we agree

,

a

or

Gentl^-

time for

prudence. Prudence is always a good
thing to exercise, particularly when there is evidence of
excesses present.
However, this is not a time for tim-

Continued
*An

address

and

American

NOW IN

on

page

REGISTRATION

Underwriters,

—

dealers

Florence

President

Florence,

38

Bank of

of

Republic

the

R.

Boyles

National

Dallas, Texas, as President of the As¬

J. Livingston, Presion page 41

ContinueU

of the

and

George

Cocke

Erie

sociation to succeed Homer

by Mr. Evans before the Annual Meeting of the Sav¬

Mortgage Division at the 81st Annual Convention
Bankers Association, Chicago, III., Sept. 26, 1955.

F.

Fred

investors in cor-

porate securities are afforded a complete picture of issues now registered with the SEC
and potential undertakings In our "Securities in Registration" Section, starting on page 54.

State, Municipal
and

U. S. Government,

Municipal

Conrad

Hotel, Chicagd, 111., from Sept. 25 through Sept.

in

State and

held

Association
in

verge
of collapse and that smart
businessmen, bankers, and investors
batten

ings

DEALERS

around

move

and

fear that this

48

SECURITIES

Annual

,

be

to

I

As

clients

widespread that President Eisenhower has

l

American

The
81st

j

99%

be as definite-as possible in
sketching the outlook for 1956 as we
see it today.
•
'7
7

/

page

a

over

try to

doubt that the impression

on

Association membership

in advance, but i am
helpful and so shall*

so-far

anxious

phere was regarded as one of deep suspicion and,*
hostility toward business, particularly business

Continued

B. Randall, among others.

expect me to call the turns in exact

definitely friendly to business, and to contrast
their attitude in this respect to officialdom under
either Trumarr or Roosevelt where the atmos¬

is very

<

comprises 17,140 banks and branches, representing

...

*

is there much

v

Con-

by W. Randolph Burgess; Homer J.

98% of all the banks of the United States and
of banking resources.r

trade to dust off his forecasting paraphernalia
and start crystal gazing into the coming year.
Decem¬
ber and January are the months usually reserved for
this precarious occupation,
v
I know that you are too wise to

course,

Nor

now

little early in the season for

a

elected Treasurer.

was

Gidney; C. Canby Balderston; Robert Cutler, and Clarence

of my

man

Vice-

becomes

Livingston; Allyn P. Evans; A. L. M. Wiggins; Ray M.

Lists

serve's credit restraints.

which would be

^

vention addressed

problems of current resurgence: (1) excessive wages
leading to higher prices; (2)-accumulation of inven¬
tories; and (3) the effectiveness of the Federal Re¬

a

units which had attained size or success.

Merchants National Bank

as

'

Of

a

.

Ga.,

Bank, Atlanta,

President, and George R. Boyles, Chairman of Board of

made 1956 should be another good

by Mr.

say,

^

.

Fulton .National

some

ing, but induced by increased consumer spending.

reasonably moderate
majority in Congress?

supported by

Mr. Evans holds that unless

are

President of the

Association's President.

as

Chairman of Board and Chief Executive Officer of the

time for prudence, it is not

a

First National Bank of
Erie Cocke, Vice-

Livingston,
Chicago

City

business year—one

j-*

Stevenson

time for timidity,

foolish mistakes

Truman, and how

from the Eisenhower

which

be

one

York

Asserting, though this is

lative programs or concrete administrative acts,
how different has the Eisenhower Administration
from that

Company

Investment Counsel and Economic Consultant

of them has to do with the

been

Edie &

President, Lionel D.

October

STATE

m

MUNICIPAL

and

NEW

INVESTMENT LETTER

BONDS

HAnover 2-3700

Public Housing Agency

COPIES OF OUR

Bonds and Notes

BOOKLET

"ATOMIC ENERGY
REVIEW"

Copy

on

Request

CHEMICAL
CORN EXCHANGE

ARE

ON

CSTABLItHEO
MCM0ERS
ANO

OTHER

NEW

STOCK

YORK

THE FIRST NATIONAL CITY BANK

llll

STOCK

EXCHANGE

ANO COMMODITY

OF NEW YORK

EXCHANGES

30 BROAD

ST., N Y.
Miami

Beach

—

Rye,

N.

120

Bond Dept.

Net

Active

Dealers,

T.L.WATSON &Co.
"

!

American

Stock

County and

FIRST

£ctl(Aw€4t COMPANY
Dallas




Banks

BROAD

STREET

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Brokers

Executed

Orders

CANADIAN

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coast to

from

BANK

coast

CANADIAN

General Gas

BONDS & STOCKS

On

A.naly$is
All

upon

requaet

»

DEPARTMENT

Dowmox Securities

IRA HAUPT & CO.
York Stock Exchange
Principal Exchangee

Members New
direct

wires to

montreal and toronto

Goodbody a Co.
MEMBERS

BRIDGEPORT

34 offices

Chase Manhattan

YORK 5

Maintained

and

Teletype NY 1-2270
25

DEPARTMENT

Canadian Exchanges At Regular Rates

Exchange

NEW YORK 4,

BROADWAY, NEW

I

Slate, Municipal,

District Bonds

Markets

SECURITIES

Commission

New York Stock Exchange

BOND

CANADIAN

1832

Members

Teletype: NY 1-708

Y.

To

ESTABLISHED

HARRIS, UPHAM & C°
Members New York Stock Exchange

department

115 Broadway, New York 6, N.Y.

-AVAILABLE

REQUEST
THE

J. R. WlLLISTON & CO.

BANK
bond

NO^

NEW

oonAnwAY

NEW YORK

YORK

1

STOCK

NORTH

LA

EXCHANGE

SALLE SL

CHICAGO

(orpokatioti
40 Exchange

Place, New York 8, N.Y,

Teletype NY 1-702-3

WHltehall 4-8161

end

ether

111 Broadway,
WOrth 4-8000
Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

(1390)

The Commercial arid

Chronicle

.

.

Thursday, October 6, 1955

.

I

For Banks, Brokers, Dealers

The

Only

American Express
Central Indiana Gas
Central Public Utility

participate and give their

be regarded,

to

EDWARD

for favoring

II.

offer

as an

BRADFORD

Kearney & Trecker

Among the

Boston, Mass.

ment

growth

of

the

invest¬

Aerovox

Corporation is
attractive.
The
com¬

unusually
is

pany

one

three

New York Hanseatic

which

Corporation
1920

Established
Associate
American

Member

Stock

Exchange

120 Broadway, New York 5
WOrth 4-2300
Private

Teletype NY 1-40

Wires

to

Principal Cities

of

debt

for

the

electron¬

ics

Aerovox

sells

shares

pro-

duces

and

and

sion

H.

E.

to

components

ffipONNELL & CO.
American

ISO

Stock

Stock

Exchange
Exchange

BROADWAY, NEW YORK 5
TEL. REctor 2-781S

Capacitors, for ex¬
ample, are designed to store elec¬
tricity, filter and control it, in
proportion
to
its
demand,
in
nearly
every
electrical
device.
comprise

the

in

fluorescent

computers,
conditioners

and

but

Trading Interest In

The

on

Life Insurance Co. of Va.

management
million

in
a

within

LD 30

TWX LY 77

a

these

is

ex¬

in

1945

from

a

built

sales

its

first

in

by

The

new

from

$8

to

years

1953.

$27

Growth

expansion

from

and

smaller

quired.

These

bit,

an

Electrical

include:

Inc.,

Corp.,

Henry

L.

Crowley & Co., Luther Manufac¬
Co.

Trading Markets

Botany Mills

In

Magna Theatres
Shawano Development

addition,

Canadian
north

the

Telegraphie

ESTABLISHED

37 Wall St., N. Y.

With

seven

Together

Generate

Fil,

principal

a

Mass.,

de

Aerovox

plant

in

New

Aerovox

has

plants in the United States
in

one

growth

.

.

is

of

the

hallmark

of

For Financial Institutions

to
are

TRADING MARKETS

Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines

Marinduque Iron Mines

the

1919

particular

company's

four

N.

Y.;

the

Santa

Henry

L.

Orange,
ideas"

great

N.

Ana,

J.

has

&

In
an

European

of

.

.

at

Calif.;

One

Olean,
and

Co.,

"exchange
with

electronic
.

at

West

addition,

arrangement

pany

of
two
re¬

the Hunt Com¬

England—considered

to

be one of the finest
organizations

of




are

Crowley

Exchange Place, Jersey City 2, N. J.

4

There

divisions.

others

search groups

Teletype J CY 783
Telephone BArclay 7-0045

that

significance

growth.

research

Members
New York Security Dealers Ass'n

Tel. HEnderson 5-9400
New York City

out

is at the main plant in New
Bed¬

ford;

Aerovox

M. S. WIEN & CO.

point

company

Officers

intense research program has
of

its

par

ratio.

class—and

through 1956. At

When we think and
speak of
this good company, we must also
think of its "Twin
Bill," Wayne

Pump,

because

Symington-Gould
owns

the

Compagnie

Direct wires

to

our

branch

offices

or

stock

JAPANESE

SECURITIES

176,300

shares,
of

to investors with vision—
investors with knowledge

Both

listed

are

have unusual appeal

may

41%

Wayne

Pump.

of Japanese potential.

on

Call

the New York

Additional

Stock

Ex¬

change —
SymingtonGould

since

since

Established 1897
Home

Symington-

waived payments on its note until

Office Tokyo-—70 Branches

Brokers & Investment Bankers

1928.

has

write

Yamaichi

5, and
Wayne Pump

at

or

Securities Co., Ltd.

1 9 2

result, the

a

Exchange

Symington-Gould

and

dividends

KY1-1557

Birmingham, Ala.
Mobile, Ala.

York City

Stock

mil¬

common

cash

111

Broadway,N.Y.6 COrtlandt 7-5680

Gould has had

Prudential
a

000

Insurance

from

year

method

of

Co.

November.

financing,
be

can

added

this

By

over

$1,500,

to

working
capital without diluting the equity.
The company will probably de¬
clare stock

dividends and, in this

way,

the investor seeking growth

will

obtain

immediate

an

vestment of his

the

burden

rein¬

dividends, without

of

personal

income

taxes.
Aerovox

stock
is
priced
in
relationship to the com¬
pany's present earnings
with¬
sound

.

exaggerated

an

the future.
1953

entire

$1.54.

.

of

the

year

industry

was

thrown

off by a premature ex¬
pectation of color sets, which kept
the public
from buying during
the

earlier

created
tion at

tion,

Christmas

serious

a

the

suffered

and

season

inventory situa¬

the start of

New

1954.

In addi¬

Bedford

serious

Wm.

plant

non-insurable

cyclical

^

L. Dewart

business,
depended
road

largely

"feast

of

the

upon

it

as

rail¬

business, which produced

the

that

of

the

contention

railroads

Railroad^

will

have

to

with

transportation, the demands
a

supplier of

would

$1.24

share but

a

cut by the

were

hurricane loss to 77 cents
The first
a

sales

half

of

increase

period

of

1954

crease

in

net.

sible
full

to

1955

with
It

predict

1955

the
a

is

share.

a

has

over

to

run

shown

similar

slight

not

yet

results

de¬
pos¬

enormous.

BOENNING & CO.

Symington-Gould manufactures
railroad
carbon
such

equipment specialties of

as

alloy cast steel,
couplers, draft attach¬
truck
side
frames
and

bolsters, journal box lids, truck
spring snubbers and resilient side
bearings. They also make freight
trucks,

car

and

which

licensed

have

just

for

the

has stated that the year should be
of

one

the

history.

in

the

conservative

more

as

best

company's

The stock is priced for
estimate

such, it represents

a

and,

sound

a

cur¬

of

the

rent value.

impressive

aspect

by

designed

are

Chrysler,

who

announced

vox

and

is

a

is

key producer in this field

almost

fully in

the

to

sure

broad

participate

advances

that

lie ahead. Under present plans of

gains

expansion,

in

go

directly to the shareholders with¬
out either dilution
tax

come

of

personal in¬

or

drain. As to

growth,

the

the

extent

imagination

is

ern

Conference,
made

was

the
the

electronics business

$8 billion

.

.

.

main plant is at Depew,
Y., founded by the family of
the late Chauncy M. Depew, of

New

be

in

York

maintain

road

sales

fame.

offices

They

in

New

as

to the other half of

Wayne Pump has plants
at
Salisbury, Md., Fort Wayne,
Ind., Ironton, Ohio and Toronto,
Canada, with wholly owned sub¬

can

.

that
now

be expected

forefront

of

this

growth. The stock is traded in the
Over-the-Counter Market.

Leeds & Lippincott Units

Cambridge Bldg. 4s, 1963
Pratt Read Co. Common

Samuel K. Phillips &> Co.
Members

Phila.-Balt.

Stock

Exchange

Pennsylvania Bldg., Philadelphia
Teletype

N. Y. Phone
COrtlandt 7-6814

PH 375

When

in Boston

visit

our

sidiaries at Rio de Janiero, Brazil;
and

London, England, serving the
Europen continent and the British

New Offices

Empire.
Smart management of

Syming¬

ton-Gould bought the entire capi¬
tal stock of Martin & Schwartz,

Inc., a leading maker of gasoline
dispensing pumps for filling sta¬
tions, and merged it with Wayne
Pump in return for an interest in
With

company.

sition, Wayne

with

synonymous

this

is

a

KELLER BROTHERS

c3<

CO.

ZERO COURT STREET, BOSTON 9, MASS.

Telephone Richmond 2-2530
Teletype BS-630

acqui¬

has

become

filling

station

Pump

equipment, and the market there

Over-the-Counter

vast one.

They

speedy

have
car

also
developed
a
washing device, which

being tested and in use, and is
designed to wash a car while the

Quotation Services
for 42 Years

gasoline tank is being filled.
The

.

4s, 1990
Pocono Hotels Units

the

picture:

Pump

.

B. Stetson Pfd.

centers.

Now

would be $20 billion

the

Central

Y'ork, Boston, Chicago, St. Louis
and Montreal, all important rail¬

about

by 1965. Aerovox
to

in¬

is

Electronics

prediction

are

Their

a

fitting guide. At the recent West¬

castings

N.

that

will

net

miscellaneous

John

Public Service Coordinated

creasing.

Aerovox picture lies in the poten¬
tial of the electronics field. Aero¬

Philadelphia 2, Pa.

low

and

ments,

but the President

year;

Keyes Fibre Co.

railroad" equipment

obviously be

of

Earn¬

have

Parchment

upon

tide of

"Carol."

Grinnell Corp.

Kalamazoo Vegetable

the modern requirements of

a
huge ex¬
pansion program. Also, their sales

1954 would

Continental Telephone Co.

spend $20 billion during the next
ten years if they are to
keep pace

damage from the abnormally high
Hurricane

Continuing Interest in

the able President

Pennsylvania

the

A

a

famine' condition. How¬

or

ever, in
light
of Mr. Symes,

earnings in

Last

television

.

discount

Per-share

to

rose

The

the

and it is in this field

.

$1

withhold

least

Canada.

that Aerovox stands out.

been

I

a

1929

Tel. HAnover 2-4850

Established

border.

Sans

Research

the

FIRM

has

organized Precision Ceramics, Inc.

and

IWeue^iComponu

Aerovox

Compagnie

Bedford,

United Artists

Engineering

subsidiary for business

of

with

Foundation Corp.

Cinema

and

$8

York

outsanding 830,000

are

3.1-to-l

ings for

Reactance

Acme Electronics,

turing

of

a

out

by acquisition.
Bit
impressive group of
companies has been ac¬

Lynchburg, Va.

I

only

for

demand

year

been

by

STRADER,TAYLOR & CO., Inc!

not

"Wifeless."

was

note

au¬

company formed
in
in
the
days
when

York

has

for

broad front.

over

predecessor

million

Dan River Mills

the

a

took

"Radio"

Commonwealth Natural Gas

is

demand

air

company's present manage¬

ment

New

light,

controls

There

products

panding

Camp Manufacturing

element

of

radios, tele¬
vision, telephone, guided missiles,

tomation.

Bassett Furniture Industries

basic

a

operation

strong current

American Furniture

the

electronic

and

mechanisms.

They

Members

York

New

constitute

electrical

of

with

New

equity, the directors have decided

Bradford

jacks, broadcasting equipment and
powdered magnetic materials.
heart

Since 1917.

simple
by
a
million

John Muir & Co., New

Members

pansion of the Crowley properties
for
production
of
power
capacitors. Rather than dilute the

resistors,

Rights & Scrip

dollars.

HAnover 2-0700

New Orleans, La. -

Investment Counsellor

and

preci¬

These

of

19 Rector St., New York 6, N. Y.
WILLIAM L. DEWART

funds will be required for the ex¬

wound

-

Members New York Stock Exchange

adequate for operational needs

with

itors,
vi brators,
printed cir¬
p a c

tors,

is

Steiner,Rouse&Co
Members American Stock Exchange

preferred. Current finances

no

are

line of

a

millions

represented

lion. There

industry.

new

product alone could

the

amounting to $4.4
equity of approximately

burgeon¬

ing

cuits, attenua¬

Specialists in

this

into

Capitalization

turers of com¬

c a

have constantly added

appliances to old wiring.
The management believes that the
sales

lead¬

Bought—Sold—Quoted

L.

.

.

electric

manufac¬

ponents

William

—

Dewart, Investment Counsellor,
John Muir Co., New York
City
(Page 2).
*

development of a
"Power Capacitor"
designed
to relieve overloaded power lines.
The application of this product is
of particular importance to homes

run

ing

Symington-Gould

recent results of

more

.

objective, I believe that the

stock

of

is

ford, Research Dept., F. L. Put¬
nam Co.,
Boston, Mass. (Page 2).

,

Aerovox Corporation

Transcontinental Gas Pipeline

Louisiana Securities

nor

is the

research

Member Boston Stock Exchange

Where

Alabama &

Selections

Aerovox Corp.—Edward H. Brad¬

be,

to

the electronics field is worldwide.

F. L. Putnam & Co., Inc.

Long-Bell Lumber of Mo.

Their

sell the securities discussed.)

to

Week's

Participants and

particular security.

a

intended

not

are

Telegraphie Sans Fil of France,
whose reputation for research in

Research Department

L. 0. F. Glass Fibres

Warner & Swasey

they

•re

Giddings & Lewis

Travelers Insurance of Hartford

reasons

(The articles contained in this forum

East Tennessee Natural Gas

Pyramid Oil & Gas^

This
Forum

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

Chemical Enterprises

.

Security I Like Best

Business
their

being

of

management
is young and
is

plant

Wayne

aggressive.
increasing, so that

at

enlarged.

Salisbury,
Both

Continued

Md.

page

Incorporated
Established 1913

is

companies

on

National Quotation Bureao

63

46 Front Street
CHICAGO

New York 4, N.Y.
BAN

FRANCISCO

Volume

Number 5470

182

.«.

The Commercial and Financial Chronicle

.

Is the

By KENNETH WARD
and

Market

Members New

Bull Market

—Ira U.

Co.

&

The

Cobleigh

Immediate

—Rudolf

Mr. Ward

cites

inflated price

as

bull

(1) the allegedly

arguments:

new

(7) increase in electrical

(6) population gains;

con¬

The Role of Gold

—J.

the outlook for

agreement about
securities.
able

The

to

always

are

wide

variety
facts

and

ures

1

bulls

mar-

a

shall

t

of

the

—Gov.

equally
vincing

that

their
the

is

stand

correct

service

ing views it is
obvious

there

that

could

be

no

market.

real

Despite the truly amazing tech¬
nological and scientific advances,
which

in

al¬

all spheres of everyday

most

he

achieved

has

man

has

made

life,

little progress

very

indeed in developing anability to
peer into the future, or" forecast
coming events, other than such
basic and elemental cycles, as day
and night and the seasons. Ac¬
curate forecasting
of the future

trend

of

the

securities

is

market

rendered

extremely difficult, be¬
cause
the hopes and fears of the
^investing
public
at
any
given
moment

translate

cannot

psychology

on

basis.

Recent,

mass

mathematical

a

of

President's

the

caused

a

single

unexpected news
illness, which

drop of 32 points
industrial

Dow-Jones
a

in

average

illustrates

day,

the

on

the

im¬

of
changing
on the market.
Because of the many imponder¬
ables
constantly in the picture,
the best anyone should hope for
achieve

to

misses

over

a

more

hits

than

period of time. No

analyst,

or forecaster, or market
writer
should
paint suc¬

letter

in

glowing colors, or quote
excerpts
from
forecasts
which
turned out ,to be right, for this
cess

implies

his market judgment is
always infallible. Instead of ab¬
sorbing the errors in dignified

silence, admit them;
this
one

business makes mistakes.
of my

said

right

that

on

As

foreign correspondents

recently: "We know

aware

in

everyone

if

you

were

you

the market,

are

always

that

—Robert

lows.

is

for

run

bull

the

usual, there

this

In

new

are

ket

■

to

of

have
question,
As
As We

we

are

It

_.

From

Mutual

Funds

Wilfred

Our

Reporter

Reporter's

May

I

—

Direct Wires

,

6

Mexican Gulf Sulphur

18

Gulf

61

on

page

Securities

Utility

Securities Now

Prospective

Sulphur

Securities

The

.

.

60

Cor per __———T
and You—By Wallace Streete

Security

.

I Like

Best

Washington

44

and

Twice

1

Drapers'

TELETYPE N. Y. 14

B.

Park

DANA

Schenectady

•

•

Glens Falls

London,
Edwards & Smith.

E.

C.

WILLIAM

Reentered

COMPANY, Publishers

2-9570

to

second-class

as

matter Febru¬

ary 25,
1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

Subscription

9576

Rates

DANA

SEIBERT, President

in United States, U.
Possessions, Territories
and
Members
Pan-American Union, $55.00 per year;
Dominion

Other

1955

statistical issue — market quotation
corporation news, bank clearings,
city news, etc.).

and

Offices:

Chicago 3,

111.

135

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La

Sal'e

St.,

(Telephone STate 2-0613);

of

Canada,

Countries,

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Bank

and

Note—On
the

rate of

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per

per

S.
of

in

year.

year.

Monthly,
(Foreign postage extra.)

account of

the

—

made

in

New

York

WHitehall

Direct

3-3960

1-4040 &

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Wires to

PHILADELPHIA

DENVER

fluctuations In

exchange, remittances for for¬

eign subscriptions and advertisements must
be

39 BROADWAY, NEW YORK 6

Teletype NY

Publications

Quotation Record

$37.00 per year.

records,

Worcester

m V. FRANKEL & CO.
INCORPORATED

SEIBERT, Editor & Publisher

Thursday, October 6,

Other

Laboratories, Inc.

Copyright 1955 by William B. Dana
Company

CHRONICLE

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

state

Reeves-Ely

Eng¬

Place, New York 7, N. Y.

HERBERT D.

plete

Chicago

Gardens,

COMMERCIAL and

St0ck Exchange

TELEPHONE HAnover 24300

Corp.

6

Subscriptions

ST., NEW YORK 4, N. Y.

Lithium

2

-

—___.

6J

Weekly

Testers, Inc.

16

You___

Reg. U. S. Patent Office

*

Johnston

40

___:

The State of Trade and Industry..

Sulphur

54

___—

Offerings..

Salesman's

The Market

Pan American

19

Registration

in

\

.

19

,____

_

Security

to

Philadelphia • Chicago • Los Angeles

4

Report.

Railroad Securities

prices and wage costs will event¬
ually find an even higher plateau
than the one presently occupied.

Spencer Trask & Co*




40 Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826
'

.

Public

REctor

•

HA 2-0270

64

21

Governments.™.

Our

25

Nashvilla

Singer^ Bean
& Mackie, inc.

8

-

——

Observations—A.

backing up such an opinion is the
changing. status of labor.
The
prices of almost everything de¬
pend on labor costs, and the bulls
think that leapfrogging consumer

m or $

than 250 over-the-counter securities

62

—-

on

Request.

We maintain trading markets in

18

News About Banks and Bankers—____—

argument

Request.

on

53

___

._

Notes

on

**Prospectus

8

...

Washington Ahead of the News—parllisle Bargeron—_

WILLIAM

•

of America
*Circular

8

1

Investment Recommendations-

FINANCIAL

Boston

__

Properties, Inc.**

Servo Corporation

20

Bookshelf-___.

Man's

Einzig: "Nationalization's Balance Sheet in Britain"

believe.

Members New York

in

Pacific Uranium Mines Co.

Cover

Stocks.—

Indications of Current Business Activity—

NSTA

Continued

office

City

Hycon Manufacturing Co.

17

(Editorial)

Insurance

Dealer-Broker

carefully formulated government
policies can maintain sta¬
bility on this new, high plateau
for a long time to come, the bulls

specialized in

.

Food Fair

16

Coming Events in the Investment Field-

on

fiscal

strong

See

and

Business

.

*

Lake

Gulf CoastLeaseholds,Inc.*

'

Plateau

For many years we

Albany

Salt

Corpus Christi Refining Co.

1955—V. Judson Wyckoff

land, c/o

BROAD

branch

to

43

Regular Features

strong arguments

The

25

43

fojj^ Savings—Robert II. Blyth

Published

have

Banking

Teletype: NYl-4643

Direct wire

the

States Collect More Taxes in

earnings,
especially,
relative to the mar¬
today's modern economy.
credit
management
and

One

Convention

Need

The

and

Astute

DIgby 4-4970

42

today's issue is devoted to the recently-eonNational Security Traders Association at
Mackinac Island, Mich., and includes the following articles on the
pages indicated:
New Horizons in Chemistry—Lewis E. Lloyd.
7
The SEC and the Fulbright Bill—Andrew Downey Orrick, Jr....
8
The NASD and the Fulbright Bill -Harold E. Wood.
1
9
Case History of the Mackinac Bridge Project—Prentiss M. Brown 10
Electronics: The Aladdin's Lamp of the 20th Century—Paul A. Just 11
Looking Forward in Television—Dan I). Halpin
12
The Treasury Securities Market—Leroy M. Piser
13
The Economic Goals We Seek—Philipp IJ. Lohman
14
A Report on the World Bank—Eugene R. Black
15
cluded

still low,

in

Broadway, New| York 4

42

More Articles in Section Two

price plateau, where stock

prices

Spokane Stock Exchange

42

SECTION TWO of

connec¬

over?"

The bulls claim that
a

Members Salt Lake City Stock Exch.

41

Backgrounds of New Top ABA Officials

term,

$64,000

Price

J.F.Reilly&Co.,Inc.

42

Bank
New

34

Divisions and State Ass'n Section

Stonier Named Dean of ABA Graduate School of

favoring both sides.
A

32

>;<

New Heads of ABA

ex¬

able

or

market

are

30

financial

willing

the

prompted
"Is

28

41

had

second

a

:<c

Higgins, Inc.

26

Speedy Recovery
Statement of ABA Economic Policy Commission
Report of ABA Instalment Commission
Resolutions Adopted at the Convention

setback—
the largest in one day sincd Octo¬
ber 1929, together with political
complications about whether the
President

24

Association Wishes President Eisenhower

September

the

tion,

Cinerama Productions

American Bankers Association Holds 81st Annual Convention. .Cover
New President's Acceptance Address
41

generously
prospective
business
improvement in 1955, and that se¬
curities purchased at such an his¬
torically high level were being
bought at the top of a major up¬
swing. Yet today, the industrials
are
more
than 100 points higher
and
are
selling 200 points over

wouldn't

you

For

Cutler

:lt

discounted

1953

Gulf Coast Leaseholds

Banking in a Democracy—A. L. M. Wiggins
West Europe Recovery Threatened by Inflation
—W. Randolph Burgess
A Creed for Free Enterprise—Clarence B. Randall
Situation Regarding the National Banks—Ray M. Gidney
Prosperity, Policy, and Prudence—C. Canby Ilalderston

,

bearish for

been

has

Industrials

their

Corpus Christi Refining

a Year of Normal
Growth—Allyn P. Evans
Cover
Responsibilities of Leadership—Homer J. Livingston
22
Strong National Economy: Foundation for National Security—.

A

has

by the in¬

balance.

well-known

a

46

1956 Will Be

writer stated that at 361) tne DowJones

Basic Atomics

The

past two years, yet subscrip¬
tions continue to mount. A year

portant
influence
public psychology

is

63

the

ago,

14

39

ample, I know of one forecasting

Kenneth Ward

Boom"-fHugo Steiner

17

public,

investment

of

Without

one.

these conflict¬

4-6551

Harrimani

Averell

15

publications.

house

read avidly

STREET, NEW YORK

Telephone: WHitehall

Explosion—Roger W. Babson
Surveys Institutional Stock Buying
Guaranty Trust Co. "Survey" Urges Debt Reduction Now

good material from
market
services
and

WALL

12

Authority and the ALCOA

NYSE

which
prefers
market opinions that are specific,
definite and unhedged. Many in¬
dividuals, who are bullish on the
market, purposely read all the
bearish
material
they can get.
This helps them maintain a sense

argu-

ments

it

us

do well!

we

Obsolete Securities Dept.
99

The Stock Market

of

are

vesting

con¬

10

ABA Addresses and Convention News

and

sell
quote

can

in the Monetary Mechanism

"Icing the Housing

steadily increased by a con¬

These

present

By them

10

How Shall We Deal With Labor Union Monopolies?
—Donald R. Richberg

are

invaluable,

you

to

eager

And

Holloway

The New York Power

better in¬
formed
than ever before about
securities. This better knowledge
been

buy junk from

guys

it, or making
going to the of¬

today

brokerage

time the bears
can

or even

statistical

same

E.

anymore!"

stant flow

tify their attitude, while
at

about

Investors

been

fig¬
jus¬

o

speeches,

has

We

9

_

First National's "Letter" Sees Self-Sustaining New Car Market

writing

fice

7

Confidence, Incentive, Initiative: Fourth Dimension of
Economics—Clifford F. Hood

market position.
be

BOUGHT SOLD QUOTED

Interest

—Rep. Ralph W. Gwinn

(2) threat¬
ened credit restriction; (3) auto production drop; (4) declin¬
ing farm income;.(5) likely defense spending curtailment, and
(6) historical market pattern. Concludes reactionary period
will be followed by consolidation and then an advance lasting
into the new year; prompting investor policy of rather full
investment, some cash reserve, with alert selective attitude.
Lists 18 industry groups, and individual issues, in favorable

speculators are
fortunate that they seldom are in

Not in Public

Amendments to Reassert Original Purposes of Constitution

(1) President Eisenhower's probable exit;

and

£
are

Sheldon

—Stanley N. Barnes

productive capacity and modernization.' As bearish points, he

Investors

M.

"The Antitrust Division Looks at Bank Mergers"

sumption; (8) research advances, and (9) industry's growing5
lists:

4

"""

Market

Smutny

—Simon

(3)

plateau; (2) long-term business uptrend;

3

____;

Investment

±

Outlook for the Money

Why "Variable Annuities"

high market sponsorship; (4) cash purchasing; (5) tax pen¬
alty;

Over?—Kenneth Ward

Johns-Manville Corp. for Insulation and

Analyst, Hayden Stone
York Stock Exchange

3

INDEX

Is the Bull Market Over?
Partner

(1391)

funds.

SALT

LAKE

CITY

'

4

The Commercial and Financial Chronicle

(1392)

.

.

Thursday, October 6, 1955

.

..nut

1955

Johns-Manville Coip. for

should

high.

rack

up

this

upward

in

A review of this

distinguished enterprise; its products, profit¬

for larger earnings

IL

back

1858,

to

apply

as¬

the roofing

in

in

he

realized

little

chemical

enterprise

an

that,

97

blocks

that

can
stand
degrees F,

resist

years

2,000

to

"Zerolite"

and

launching

was

"Superex"

temperatures

petroleum trades to
dampness or acids.

and

heat,

There's also

a

known all

facings and

brake linings.

over

the

world;

that

would

above

$250

million

would
and

an¬

A

1M>%| of

over

own

employing
technicians

some 600
in
two

One of the brain

bestos

mines

research

in

world

O-Matic shingle.

(Province
U.

duce

Cobteigh

Quebec,

of

one-third

mineral

tos—since

65%

some

of

for its

company

resistance to heat

cold, fire, friction

to

Since

J-M

different

difficult to

the

turns

output

decide

description.
would

ance

building
for

out

it's

where

be

the

import¬

items

for

These

half

would

shingles

and

of

the

down

flutter,

wind

in

storms.

type

down

the

shingles to

the

research

of

adaptation

an

"Celite."

silica

This not only

temperatures

re¬

such

in

ettes.

We

include

asphalt

(many

city

talked

about

ought also to
pansion.
Most

research;
mention plant

ex¬

shingles); sound deaden¬
ing insulation, rock wool (bats and
fleece)
to repel summer's heat
and winter's cold, wall

into

outlaw

the

use

of

wooden

board, and
All these

fireproofing elements.
products tie into
construction

try;
not

this

in

modernization
it of

the

50%

indus¬

of

category

but

new,

national

building

roughly

and

sales

our vast

and

total

represent

replacement and
demand—much of

do-it-yourself variety.

Switching over to industrial out¬
the most important item is
Transite pipe, an asbestos-cement
(patented

quarter of

a

a

century ago) used widely in water
and sewage systems because of its
strength, maneuverability, and its
resistance
Transite
enclose

to

rust

piping

also
cables.

electric

There is

a

used

to

fiber

industrially—

sheets

for

we

expanded

plant.

right

J-M

kilns,

and

has

doing this
$20 million a

since the

and

improved

been

along—about

year;

has

war

ex-

oanded the equivalent of $50 a
share in total plant expansion. A
recent
on

outlay has been
asbestos

an

mine

Rhodesia,

for work
mill

Ontario

through

a

should

be

next

good

ually
crease

by

industrial company

displays

impressive

an

in¬

in sales over the years. J-M
no

==

means

department.

a

laggard in this

Since

the

net
sales have grown from $92 million
(in 1946) to $253 million for 1954.

the

quite ample coverage
dividend, paid in

year,

the

$4.25

of

the last four years.

About capitalization,

1967, and 3,181,530
listed

N.Y.S.E.

range

(1955)

it couldn't

excellent,

notes due

shares
price

common

the

where

has

8OV2 and 97.

between

been

Financial position is

the

by
al¬
lowances, particularly on the Ca¬
nadian properties, has been able to
virtue

and

of

heavy

company,

depreciation

expand plant and pay steady

and

quite attractive dividends with but

slight resort to outside financing.
J-M common,

at 82 paying $4.25,

to offer

appears

vestment

grounds:

a

value

quite solid in¬
the following

(1)

lence,

on

managerial excel¬
profitable operation in

(2)

out

the last 31

of

(3)

years,

a

reliable dividend yield, at today's

price,

we

of

above 5%, (4) sturdy
continuity record going
back to 1927 (excepting only 1933
and 1934), (5) diversity of prod¬
ucts, (6) excellence in research,
and (7) control over costs.
dividend

Next

J-M

year

have

will

the

capacity to turn out 625,000 tons!
of asbestos

against best previ¬

as

ous

annual

tons

in

production

1951.

witnessing the

are

clivity to follow

atmosphere feeding
Even

during

—

566,000

The

only cloud in
sky here is a foreign one.
Russia delivered some 25,000 tons
into Europe last
year, undercut¬

the

Russia

J-M

is

illness

have

there

"explanations"
for

price

about

20%.

there pitching again
but the volume is not

large and the threat to J-M

nro-

fitability seems not to be partic¬
ularly serious,
As

in

the

support
"technical" area,

of

case

almost

any

selling above 70, there have
been rumors of a J-M split up.
Whereas
such
financial
fission
not

to be

seems

reason

for

However,

will

ter.

out of the way

appear

here, there

special

no

and

few

a

the

That's

the

pay

this

the

way

amateur

of

reversals

market's

the

of

present

the

action

Thus,

President's

and

in

the

odd-lotters'

opinion

as

being ^soworthy market

a

concentration

of

odd-

lot

dumping was widely hailed as a bullish
portent. Now, after the repeated market de¬
cline

to

low, at least two of the
broadly publicized market

new

a

popular and
mentators pin
cast

that

on

their
very

showing

ures

purchases

for

reason

an

excess

bearish fore¬

a

same^tool.

They

cite fig¬

"sucker"

of

most
com¬

Wilfred

A.

sales of 34%, 40%, and 24%, respectively,

over

May

odd-lot
on

the

following Tuesday, Wednesday and Thursday.
And
of

the

from

a

leading market technician, whose

"evidence"

thrombosis,

had

been

these discoveries: "the technical position of

now come

investment issues.
that

we

are

.

.

lengthy climb in the

With the material at hand it appears

.

any

in

the

current

non-technical market area,

on

themselves.

factors which

discussion

do

again

we

the

President's

wethers of

actually

fever

or

■

bearish expectations

see

sublimated

chart, hailed

market decline.

as

during the dramatic

are now,

since the rise

trustworthy

the

bell¬

Among such now-bearish factors that

also present during at least the latter part of the

were

preceding market rises
come,

'

in the

factors

market

Dubious economic, financial and political

overlooked

were

of

two-year advance in the Dow-Jones Average
in

A lighten¬

...

rally would be the acceptable policy to follow."

Likewise

feeding

[now]

entering the first intermediate decline [sic] patterned

since the inception of the September, 1953 uptrend.

ing on

Interpretation

consistently bullish pre-Eisenhower

the list had been weakened by the preceding

are:

credit restriction,

declining farm in¬

threatened drop in auto production, potential reduction in

deficit spending, and

the historically high level of price-earnings

ratios and the market level.

Actually, all these threats existed when

the Dow-Jones

well

370

was

as

as

at 470, when they are so

now,

clearly recognized.
This observer is willing to make a good bet

that in the ensuing

weeks, if the market declines, the "explanation" will be the end of
Eisenhower

confidence;

while

rise

a

will

"obvious" effect of Fair Dealish inflation

attributed

be

to

the

and pump-priming.

Derby Record

time

of

splits

most

buyer of Johnsis not asked

common

premium

top

: n

5

interval

forecasts.

company

passage

would-be

a

the

of

phisticatedly accepted
indicator, the reported

Over

market

drawer

price

the

longer-term, the

course

of self-feeding psychology

is vividly demonstrated by the Wiesenberger Stock Derby,

test,

Manville

pro¬

bearish

or

sharp rally in the days following the initial
bust of Monday, Sept.
26, with coppering of

probably attend to the mat¬

The

community's
bullish

a

J-M split at the mo¬

a

arrive!

war,

in

the "tool" of odd-lot trans¬
actions has been used
successively to cite both
bullish and bearish
interpretations. Midst the

stock

would

investment

trend,

-

short

occurred

for

the

in

this year,

itself.

on

the

the

ting

psychological

a

new

debt of $4 million 2.7%

30

CHASING THE FEVER CHART
Again

an

denials
us¬

partly
to
completed

due

from

the

of

ment.

ready

September.
A

By A. WILFRED MAY

year

be much simpler—a slight funded

in

and

subsidiary company. A new roof¬
ing plant in Savannah, Ga. will
start operating a year hence; also
a
new
insulating board plant in

is

whole list of insulat¬

ing materials used
Marinite

corrosion.

and

is

as

Southern

put,

product

panies,

this

we

progressive com¬
have repeatedly
noted in these columns, annually
plow back a good chunk of earn¬
ings and depreciation allowances

ordinances

ss

has vis¬

Jeffrey mine,
aggressive over-all pol¬
icy of cost control. Per share net
of around $6.20 appears possible

of¬

been snapped up wf a particularly
effective smoke filter for cigar¬

sales.

gross

roofing

off

up

not

do

Seal-O-Matic

high

account

industry which

almost

the

pointed

industrial plants as refineries, re¬
fractories and breweries, but has

bit

start

to

First in

this

of

that seal

and

been

sists

400

a

laboratories.

Another important

has

called

over

lines,

has

blow

seal

roof.

or

noise.

or

engineers and

fers considerable defense against
gales, by emploving the cun'c h°at

output derives from this fiber fa¬
mous

devoted,

children

shingles

the

Well,

is

The recent spate

roof,

or

fiber.

story of Johns-Manville is,
largely, the story of asbes¬

very

for

the

to

to

division is the J-M Seal-

hurricanes

need

ada). and pro¬
of the world out¬

put of this unique
The

of

Can¬

on

costs

and to

tra¬

strong

sales

lower
section

itself

of

the research division

the largest as¬

the

sales

This

costs.

brightened

each

amounting

sum

each year, to

operate

and

products—it's

research.

that

nually;

manufacture

ditional

ibly

for

J-M does not just confine
to

well

gross

Ira

clutch

broad line of

later, would be

.

in

used

sheets

labor

the net earnings' outlook

use,

insulating

business, he

dividends.

and

marine

and

ovens

one

began

Johns

W.

bestos

in

way

.

4

price competition, especially
asphalt shingles and roofing,
end of government stock piling of
asbestos
in
mid-1954,
and
in¬
creases

When,

was

variety of factors includ¬

a

in

prise Economist

ability, and prospects

This

1954.

Observations..

share

per

ing

By IRA U. COBLEIGII
Entet

to $5.24 in

1951

due to

■ii*"

pattern,

slipping from $7.75 net

Insulation and Investment

time

all

an

Net earnings have not quite

followed

held

under

the

aegis

of

Wiesenberger

Arthur

a

con¬

and

Co.,

wherein the coming year-end Dow-Jones Average price, together

to

Continued

on

for

page

equity

(only 2
points above the year's low). Sell¬
ing around 13 times current earn¬
ings and yielding above 5%, J-M
quite
favorably
with
major
building
industry
The company has shown

compares

other

1880

1955

shares.
it

can

pleasure In announcing the

money in fair financial
and foul; and if it can

continue

We take

to

sales

expand

idly in the next decade
past, stockholders

(there

14,000 of them) have
at

or

is

our

firm.

for

the insulation

delivered

late you
of

torious

Herzfeld & Stern
30 Broad

quite rosy,

to

millions.

it




iff!

i i

i I

»

i

4-

REPRESENTATIVE WITH

OFFICES AT

50 Broadway,
TELEPHONE:

New York City

WHITEHALL

3-7161

a

wel¬

sturdy and less meri¬

Transamerica Corporation

Spear,

Leeds & Kellogg, 111
Broadway, New YorkrCRyT-jnem-

Street, New York

i

EASTERN

equities.

bers of

the New

«i

frank n.

will acquire a membership

belgrano

CHAIRMAN

Yoijk StocKEx-

in the New York:Stock Exchange.
it*

OUR

conceivably insu¬

from considering

less

Spear, Leeds Admit

Exchange

Punch

?

APPOINTED

Its

change, will admit Joseph Punch
to partnership
on
©ct. 13.
Mr.

r:t

HAS BEEN

stock, too, has certain in¬
sulating qualities. It would make
an
acceptable lining for a con¬
servative safe deposit box; and its

ter

Members New York Stock

smith

the

over

common

purchase could

n

james a.

rap¬

in

are

least

renowned

has

founding of

a

as

as

asbestos-tinted future
to look forward to.
The company

75th Anniversary
of the

WE ARE PLEASED TO ANNOUNCE THAT

earn

weather

OCTOBER

3. 1955.

6c

PRESIDENT

61

Volume

182

Number

5470

.

.

be

The Immediate Outlook
For the

sold,

recent

developments

markets which indicate that the present
•

from that of the 1930's.
and

action

states

Comments

"Today

a

the

in

money

turities

quick return to

easy

it did last week."

money

a

far

analysis than
the

to

to present

me

complex

more

casion

market^ outlook at

seems

on any

in

problem

previous

oc¬

during

last

two

decades.

The

between

ference

situation

economic

our

and the state of affairs which ob¬

tion

tained

t

numer¬

more

various

nomic

eco¬

nomic weights
than

at

am

the

war,

the

such

may

continue to enjoy in the years

previT
ously mentioned eventualities, we

Rudolf Smutny

of

habit

since

had

have

we*

as

afraid that

our

eco¬

not

and

I

And

this

period of economic expansion such
;

any

time since the
war-.

If

been
appropriate-, during a

depression rhaye

especially

-

baffling,

more

mid-1930's.

formulated to deal with

were

and their

ous,

the

in

true, then the money 'market
techniques and expectancies which
be

be

o

•

barring

as,

Equipment

on

necessarily
cloudy
the financial shape of

affording

the 3.25% return, to be

first.

sold

offered

the

were

first

Vision

of

things to come.
Despite the bearish action of the
stock market this week, I believe

prosperity is as

has
our

been

ever

in

•

basis

economic

fundamental

the
for

sound as it

the history

of

country.- I know we have the

and the materials, and I
we have the vision to make
future one of economic op¬

tools,
hope
our

portunity unlimited. In fact, we've
put

tion of
since

fairly good

a

on

abilities in that respect

our

the

demonstra¬

of

end

War

World

II.

Barring the mishap of more war,
or

a

political

enterprise

assault on

or

on

principles which

people
dance

to

economic

have given our

greater measure of abun¬

a

than

any

the

private

has

other

ever

been known

civilization,

a

per-

address

Kansas

by

Mr.

before

Smutny

City Society of Financial An¬

alysts, Kansas City, Mo., Sept. 28, 1955.

They

move.

purchased by

were

pension fund

a

which, presumably, was more in¬
terested in attaining a maturity
obtaining

theoretical

market

the

advantage

than tin

objective

months, such invest¬
not

been

so

readily

into

cash

as

hereto¬

have

ments

convertible

have
U.

to

S.

of

same

af¬

also

taking

What, for. example, is currently
happening to the "ladder of inter¬
est
rates
pattern" on which a
large part of the market experi¬
of these younger men is nec¬

ence

first

five

to be derived from all this is clear.

That

resent

been affected marinterest-rate changes,
market develop¬

by

but,
nevertheless,
have
easily salable throughout
period of stress. The lesson

ments,
been

this

short-term Treas¬
dependable liquidity
market circumstances.
and municipal obliga¬

only

is,

-The

reason

dicated

in

However, under the impact of an

trying

Corporate

was an

orderly, and seemingly change¬
less, progression of rates of re¬

from

ranging

turn,

the

lowest

those securities with the
shortest maturities, to the highest

yield

on

return

those

on

with

the

longest

maturities.

the

for

this

getting

are

learning that
like a lot of us

now

curve,

along

in

years,

seems

to

bill

neaijly as well, even though

plus

they came pretty
close to doing so.
Consequently,
the market premiums commanded
by the presumed liquidity of such
corporate and municipal short-

Insistent sellers

term

tified

announce

should

a

require

a

activity continue

lending./

to

A credits

fore .-.only

from

and will there¬

A's if they

take triple

3 'Hr * Continued

'

:

bids

buyers who are well satisfied with

/large - volume of com¬

mercial bank

be content

basis

double :A

with

well-sustained, high level

economic

of triple A bonds

have frequently had to

double
of

on page

50

ces

new

-

the

toe c o m m e r c i a 1
experiencing such a
demand for loans — from

banks,/are

strong

business, industry, and consumers
the amount of funds they
seeking

in

investment

the

bond market has been insufficient
to

maintain

prices
gan.

of

level

the

of

bond

Co.

funds

has

been

economic

boom

we

generate

such

a

in St.

the association of

W. D. QUINE

joined Bache &

They were formerly the offices of McCleary &

in Central and Gulf Coast

This

now

Petersburg, Leesburg and Winter

Co., Incorporated, and are

well-known to investors

Florida.

association will benefit

new

and others who visit this

it

are

enjoying would, if not mod¬

erated,

.

our many

clients

de¬

liberately intensified by the mon¬
vigorous

Florida offices have

new

..

Haven.

with which the year be¬
And, of course, this dearth

loanable

now

Three

terrific

popular vacation

area,

since

provides convenient investment headquarters for
from home. They will find in these new

them away

branches

complete facilities for handling all security

efficiently.

commodity transactions quickly and

you

trip South, why not visit us for any

need? Here

are our new

locations:

556 Central Avenue

ST. PETERSBURG:,
Edwin S. Crooks,

CHARLES

fair-sized new issue calen¬
the usual basis differential
double A and triple A
bonds has tended to be ignored.
a

between

obligations may not be jus¬
in markets of the future

On your next

pleased to

port¬

dar,

for many years

help
are

such

of

items being offered for sale,

folio

and

We

ratings.

set of

new

etary authorities, for fear that the

we

yield

volume

increasing

tions of similar term don't fill the

investments,

have

there

war,

credit

the

by

preferences is, simply, that
usual
buyers of short-term

—that

this

differentials in¬

the credit

uries provide

market

depression and

Under

based?

grew

maturities

annual

usually found ready buyers, and
the longer maturities moved more
slowly. Today, in many instances,
this no longer happens; ; ; '

patr
tern, which worked so well for
so
long because of a set of eco¬
nomic circumstances imposed by
essarily

several

place

the

back no further than the past

were

in volume, and they are still
substantial, although, during the
past few weeks, they show signs
of tapering off, at least .tempo¬
rarily. As a rule,, single A, double
A, and triple A rated bonds sell
on yield bases which roughly rep¬

ketwise

in the mu¬
There, too, the
yield curve is flattening out. For¬
merly, in the case of new issues,

is

younger

two decades.

inflow,

Municipal Bonds

the

go

cash

to

placement commitments. For
months,
such
offerings

rect

of course, also

nicipal bond field.

generation of port¬
whose memories

to

rates

needed to meet mortgage and di¬

have,

obligations

as

sort of market action

already
to
be taking place, which must
seem confusing arid anomalous to
managers

addition

may
Short-term

revised.

be

Treasury

clue

a

interest

term, high-grade corporate bonds,
raise funds which, in

liquidity

their

of

in order to

fore, despite substantial price con¬
cessions.
Therefore,
our
ideas
concerning

trend

lie in the current flattening
out, if I may coin a phrase, of
the
"quality curve."
Late last
winter, many institutions began
offering for sale blocks of longmay

notice.

recent

provide

may

the future

development

yield.

developments

folio

which

recent

by the, shorter maturities.,
which were offered- at the same

Action

appear

.

Another

forded

ket

Well,
♦An
the

at

to

longest
this price

the

Actually,

maturities

The

Certain significant money mar¬

maturities,

earliest

the

Significant Developments

history will faithfully repeat
itself in detail may still further

You might have

3.25% basis.

a

expected

blandly assuming that money mar¬

our

of

chased, at competitive bidding, an
issue of Reading Company 314%

to come.

ket

obscure

some

as

gentlemen may know, we of
Salomon
Bros.
& Hutzler, pur¬

in the mid-1950's,

now,

short

In

Flattening Out of the
"Quality Curve"

:

a

and other money

you

into this ques¬
appear

month,

this

Early

short and

are

maturities.

Trust
Certificates,
ing for the American people is
which matured semi-annually, in
still within the scope of accom¬
from six months to 15 years. The
plishment.
last
14 maturities,
covering the
If this point of view is valid,
years from April, 1964 to October,
then, from a money market stand¬
1970, inclusive, were all reoffered
point, there is a fundamental dif¬

which

n o w

rapidly than

intermediate

manently higher standard of liv¬

imponderables
enter

a

more

increase in cost of the Public Debt burden.

this time

sedately,

period of time. Currently,
longer maturities are selling out

Holds if busi¬
ness activity is maintained at peak levels, interest rates should
normally hold at present, or at even slightly higher levels.
Sees as forces holding down rise of interest rates: (1) fear
T of upsetting the economy, and (2) the political opposition to

The

apt to be an imme¬
while the longer ma¬

turities moved out more

money

over

V doesn't appear as remote as

were

diate sellout,

on

until

up

in

up

question the practicality of shortterm corporate and intermediate
obligations as media of investment
for funds which may be needed

recently, when new issues
of
equipment
trust
certificates
came to
market, the shorter ma¬

stock market

recent

as

it

that

steam

economic

bust.
These developments bring into

quite

situation differs greatly

on

Now,

of

would end

the intermediate maturi¬

as

maturities.

est

Members, New York Stock Exchange

discusses

head

ties, and the intermediate maturi¬
ties almost as much as the long¬

By RUDOLF SMUTNY*

Smutny

virtually

yield

to

have

much

Senior Partner, Salomon Bros. & Hutzler

Mr.

It's flatten¬

its shape.

losing

ing out.
In today's market for
equipment trust certificates, the
early maturities, if they are to be

Money Maiket

5

(1393)

The Commercial and Financial Chronicle

.

Acting Manager; George Orr, Office Manager

311 West Magnolia Street

LEESBURG:

George 0. Craig, Manager
as

Resident Manager of our

Denver G. Mann,

SAN

FRANCISCO

OFFICE
There

and his election

as

Vice-President

259 West Central Avenue

WINTER HAVEN:

are

Manager

other Bache Florida offices in Miami

Miami Beach

Palm Beach and two in the

and

area.

and Director of our firm

BACHE & CO.
MEMBERS

NEW

LEADING

HILL




RICHARDS & CO.
a

YORK.
STOCK

36 Wall Street,

corporation

All

our

AMERICAN.
AND

TORONTO AND OTHER

COMMODITY

New York 5

offices

are open

EXCHANGES

DIgby 4-3600

Saturday mornings

Founded 1879

Hear

L

"Today's Business"-WOR 7:15 P.M.

ignis
weeknights

|

6

(1394)

The Commercial and Financial Chronicle

President's

From

thermometer

concerned

are

By CARLISLE BARGERON
The gyrations of the stock

strut but

mar¬

to

offset

f t he

o

York

the

publicity

New

Exchange that
it

is

just

c

f

this

buy

\M

After

all,
single

a

company
in
the country is
cent worse

or

better

Carlisle

on

V*'

/

God help

that

The

would

mean

would

of

be

illness.

that

the

to

his heart

selling for
Motors

or

attack

though

much.' If Gen¬

as

any

corporation is

fix.

indeed, in

are,

a

helluva

The truth is that it is all

but

sense

politicians

the

cians,
stock

are

non¬

politi¬

as

are

Could

all

in

of

fact,

are

thp

that

Republican Adminis¬

try who sell short, who fall in the

Market

Reuther's

spouting

going

at

off

One
as

the

White

House,

magnification of him.
be

annoying

to

a

are

thing is inescapably true,

certain Senator has remarked

to

me, "the millions of ordinary
people whom the Stock Exchange
brags about, are not watching the

This

him

see

grum¬

surprised

it

As

was

mat¬

a

extent that

how

many

saying he would

now

timber

There is

blings may die out but they
quite rife at this time.

But that

in

best

the

Presi¬

event

Mr.

Eisenhower isn't available again.

blings about bringing down here

more

an

Republicans'

dential

try

once

and

nationwide

people

The

fun

the

This

observer

he

will

available

reason

no

should

Washington
months

hardly see
again.
why the Stock

can

be

react

for

there

to

the

will

jockeying for
Republican
ranks.

it

but

next

be

dous

a

in

few

tremen¬

in the

power

Should

the

President leave the picture and
permit Nixon to become President
it

is

amazing

how

much

stature

he would acquire in a few months.
The

minute

leaves

ft

one

the

man

Secret

Service

and surrounds

an¬

other, that man with all the
tronage and other power at
command, becomes
mendous

Theodore Tsolainos
Members New York Stock

&

is

Co.

stature.

a

his

Wankly, Nixon

unusually capable and the man¬
would rest upon him better

than

it did

when

Truman

he

House.

pleasure in announcing

the

barring Nixon's coming into
the White House through acces¬
sion, he would have little chance
in the hurly burly of Republican
politics. The man to watch for, in
that event,
is Secretary of the
Treasury Humphrey. He's the one
who has been mostly running the

opening of their
new

offices

at

One Wall Street

government

The United States Department of Labor's Bureau of

Employ¬
Security currently reports that idle workers' first claims for
unemployment compensation edged up by 6,500 to 166,200 in the
ment

week ended
The

Sept. 24.

^

rise

in new claims was attributed to layoffs in
major
plants retooling for model changes, plus scattered seasonal
layoffs in textiles, apparel and construction. A year earlier, first
auto

claims totaled 246,200.

by

claims

for

first

York,
In
of

auto

plants alone, the department said,
jobless pay by 7,200 in Michigan, 4,000
1,400 in California and 800 in Missouri.
the

week

ended

Sept.

boosted
in New

17, the Agency reported, the

total

workers

drawing jobless pay dropped by 34,400 to 870,100—
lowest it's been since mid-October, 1953. Some 40 states re¬
ported reductions in the number of workers drawing unemploy¬
ment compensation. A
year earlier, there were 1,605,400 receiv¬
the

ing jobless pay. According to states reporting to the Labor De¬
partment, insured unemployment has declined by 1,106,000 since
the week ending Jan. 22, 1955.
;
Surging steel demand has reached the point where producers
do

can

little

improvise and hope for the best, their big
Of ingot capacity, states "The Iron Age,"
national metalworking weekly this week.
problem

except

being

lack

a

Producers

are
allocating raw steel to rolling mills on the
product demand, but there is not enough to go around.
Consumers are under allocation, too,
nevertheless, backlogs are

basis

of

building

and deliveries continue to lag.

up

Emergency
occurrence.

houses

penalizing

shipments,

Desperate

when

they

the

The

it

notes,

consumers

forward
the

it.

get

can

when he had

year

have

But

looking

become

buying

are

too

from ware¬
emergencies are

many

who

consumer

everyday

an

more

stocked

up

last

chance.

railroads'

freight car program is shaping up as one of
biggest of the postwar period, this trade authority declares.
looked like a 50,000-car program last June probably will
wind up closer to
100,000 cars before the year is out. The reason

the

What

is that orders must be placed
by the end of
fasf tax write-offs, it points out.
*

This will

1955

qualify for

to

continued heavy pressure on plates and struc¬

mean

tural, that were tight even before the freight car program got
underway.
Although the railroads were late coming into the
the mills are leaning over backwards to take care of
them because of their importance to defense, continues "The Iron
Age."

market,

Consumer inventories
demand

continues

at

opportunity to

situation

will

its

are

in bad shape and so long as overall

present fast pace there will

rebuild stocks to

continue

into

well

be little or
working level.
This

safe

a

the

new

year.

Meanwhile, the mills

are straining to get the last possible
melting furnaces.
This is evident in the gradual
improvement in ingot production during the last month.
But

pound
the

from

and tear on equipment
declares this trade weekly.

wear

year,

may

cause

trouble later in the

In the automatic
States built

anyway.

bly line

New York 5, N.Y.

^go.

year

Despite scattered layoffs in the automobile and textile indus¬
claims for unemployment insurance in the latest week
showed some falling off.

no

But

a

tries,

un¬

expectedly fell heir to the White

take

industrial produc¬
high level with out¬

put much above that of

pa¬

of tre¬

man

tle

Exchange

last week, but
notwithstanding this fact, total
tion for the nation as a whole remained at a

New

catapulted

professional

speculators.

That

the

issue

be

grum¬

But

prominence to such

before Senatorial quizzes the gen¬

be

Index

slight declines in the output of several industries

were

Layoffs

Randall into

Clarence

it

,of

clean

you'd

are

the

referring to the

bonanza for lawyers.

of

more

Ford

Production

J
There

thing.

such ended with his death.

professional

here in town there

same

course, Truman did
to seize the steel plants.

be

some¬

Administration.

are

operators

does

Of

a

Repub¬

a

when

revolution.

a

com¬

does

now

Roosevelt
was

Deal

as

same

stock
operators, and among ■ the
relatively few of the former who

But just

not

am

ter

we

it

as

Democrats do the

class

Walter

would

Administration

thing

it

a

doesn't

much when

as

along
funny

came

It is

industry

lican

out

and

admit there would

more

but
plain half

dependent upon continuing to sell
its
products
upon
one
man's

of the mouth, more of his coming
and

thing

I

It has

prospered under all
By and large it un¬
likes the Eisenhower

well under Truman.

health

or

tration?

of

on

evo¬

stand

can

wars.

Administration, but it

than

possibly get
Motors
a

it

and

them.

was

ex¬

Democrats

mean?

the CIO

I'll

carry

government.

had

eral

influence of the

General

did under

that

burden that is put upon
taxes, high wages, un¬

doubtedly

General

dent

So what?

the

more

would

jn

would

that

sure

phase of what is called

not

CIO in the White House.
what

about

Motors, of any other
corporation, is worth just as much
today as it was before the Presi¬

us.

Democrats.

return

Well, I'm quite

appeal,

Democrats

of

they
would
give
if
called to account, that Eisenhow¬
er's illness meant the possible re¬
of the

with the most popular
that
it
has
brought

lution

planation

turn

a

Adminis¬

that

%.

I

this instance the deep think¬

least

because

the

ing traders probably reasoned,
at

palatable

conservative

"peace."

off

man,

fairly

of

is
.

economy ever comes to turn

one

In

is

years

survived

one

Bargeron

because of the President's
our

so

it: high
friendly government,

be

The fact remains that the stock

one

If

"M;

Kg M

and

sell stocks.
not

or

The great accomplishment of the
Eisenhower
Administration,
the

n

country
together

come

end

i

Industry

Price

Auto

Business Failures

to

thing
about
industry in the past 20

American

tration put them across.

millions

people

Food

and

remarkable

most any

so-called

where

the
.

The

to

ng

Trade

them the bunk."

'becomes

campaign

get them there. They have seemed

a

marketi

publicity

The Eisenhower Administration
has picked up most of the old New
Deal issues and put them into law
whereas the New Deal couldn't

campaign

Carloadings
Retail

Commodity Price Index

five

or

Production

Electric Output

State of Trade

points because of a particular bul¬
letin about the President's
health,
the more the Stock
Exchange's

that it would

Stock

house

economically I can't see
be so important.

dropping four

Steel

The

in the earn¬
companies in which

the market

Thursday, October 6, 1955

.

r

only

ings of the
they have a part. To the extent
that they read the headlines about

Ahead of the News

.

car¬

diograph and moving in and out
of the market
accordingly.
They

Washington

ket around the pulse beat of Pres¬
ident Eisenhower are doing a lot

or

.

on

industry last week the six millionth United
1955 was expected to roll from an assem¬
Saturday afternoon last.

new

of

car

"Ward's Automotive

Exchange Firms Ass'n

Telephone:

Cable Address:

BOwling Green 9-6705

PANMARION

ous

Cancel Dinner Plans
The

October 3, 1953

Association

change Firms
plans
for
a
s

Reports" said the milestone, reached at
point in industry history, was not recorded in previ¬
peak year 1950 until November. The six million figure also

the earliest

scheduled
the

Plaza

the

to

Board

held

held

Nov.

The

Hotel.

Continued

on

page

Ex¬

CHICAGO

DANIEL

will

however,

F.

RICE

&

Co.

new

YORK

at

17

ANNOUNCES

meeting of

Governors

planned,

as

Stock

has cancelled its
dinner
originally

be

of

of

DIRECT

be

PRIVATE

Nov.

WIRE
!

TO

16-18.
ANNOUNCING

THE

FORMATION

FAIRMAN & CO.

OF

Eastern Sees. Wire

LOS

CALIF.

ANGELES.
AND

To

Prarumt, ifitrpljtj $c (En., ilttr.
50

BROAD STREET

•

NEW

TO

CONDUCT

A

•

Teletype NY 1-2402

GENERAL

INVESTMENT

BUSINESS

CONNECTING

Securities,

Broadway,

YORK 4, N. Y.

nounce

Whitehall 4-7361

Hartford

Eastern

Inc.,

120

New

City,

an¬

York

the installation of

an

been

formed

with

offices

the Hamilton Bank
Building.

Joseph
October

4.

1955




141

Pearson

F. White

ficers
hi

are

President

Davidson,

R.
and

A.

Davidson,

Treasurer;

Executive

R.

in

Of¬

retary.

D.

JACKSON

BRANCHES:
AND

NEW YORK CITY

ROCHELLE,

PRIVATE

ILL.

FT.

WIRES

•

A.

Vice-Presi¬

Schmid, Sec¬

4,

CALIF.

BOULEVARD

ILLINOIS

CHAMPAIGN,

DODGE

TO

Jr.,

dent; R. S. Harrison, Vice-Presi¬

dent; and James

WEST

CHICAGO

Keystone Securities Corporation
has

FRANCISCO.

DANIEL F. RICE AND COMPANY

Form Keystone Sees.

IN

Charles O'B. Murphy

SAN

TO

WIRE

YOUNGBERG

&

En¬

terprise wire to Hartford, Conn.

SECURITIES

William O.

STONE

AND

FAIRBURY,

CEDAR

OWN

OUR

KANKAKEE

RAPIDS.

IOWA

OFFICES

AND

PRESCOTT &

CO.

A.

G.

EDWARDS

CLEVELAND

ST. LOUIS

GEO.

K.

BAUM

KANSAS

THOMSON.

8c

CO.

CITY

KERNAGHAN
TORONTO

•&

CO.

LTD.

&

SONS

51

182

Volume

Number 5470

.

.

The Commercial and Financial Chronicle

.

(1395)

stock interest to the pub¬

common

Why "Variable Annuities"

lic.
do
as

Are Not in Public Interest

insurance

I

have

permitting life insurance

a

an¬

Hamp-

it

I

in

opposition

to

Mr.

also appeared

Sheldon

M.

ability of the insurance

the

against the bill. The

Hampshire, the Securi¬
a part of tne
Department and in ad¬

to

being Deputy Securities

Commissioner, I

also

am

Deputy

Commissioner.

Insurance

How¬

today I would like to speak
only from the standpoint of se¬
curities regulation—not insurance.
You might wonder why a Se¬
ever,

Administrator

curities

with

concerned
tion

would

be

proposed legisla¬

which would permit life

in¬

companies to issue vari¬

surance

able annuities. My concern,

which
is shared by the National Associa¬
tion of Securities Administrators,
stems from the "variable" concept

of

annunities;

is,

that

what

an

annuitant is paid by the insurance

will

company

from year to

vary

The expressed purpose be¬

year.

annuities

such

hind

the anriuitant

is

to

afford

hedge against in¬

a

flation—projection against loss of
purchasing power.
The

industry,

insurance

liie

anteed fixed-dollar payments, in¬
its

funds

in

securities,

position

primarily in debt
to be in a

order

its

meet

to

guarantee.

However, because in debt securi¬
ties the interest and amount of

repayment are fixed, this type of
investment would not accomplish
the purposes

The
is

in

other

of

a

variable annuity.
of

method

common

investment

stocks, which rep¬

ownership of a portion
of business and its physical assets.
resent the

know, this type of invest¬
ment tends to fluctuate in value

As you

business conditions
and, to a large extent, with price
levels. Obviously, if the payments
with

general

the

to

annuitant

are

to fluctuate

somewhat in line with living costs,
it will

be

just

necessary

ment

to invest tne

of

to him in

the

a

stock

common

part

of

1933

would

an

intelligent

provisions of the

the

Continued

on

page

invested

securities to

primarily

meet

in

its fixed-

person

is

annuitant"

so-called

units

of

he

The

depends

which

three factors:
of

(2)

on

(3)

life expectancy; and

His

A

gets

(1) The asset value
accumulation units;

his

of

all

annuity

amount

units.

projected yield of the annuity

fund. Once the number of annuity
units based upon

is

life

his

of

remainder

the

for

annuity fund is invested primarily
in common stocks, this value will
increase
and
decrease
with the

not

does

variable

a

insurance

*A

talk by Mr. Sheldon at the "Deal¬
Digest" Seventh Mutual Fund Sales
Convention, New York City, Sept. 14,
1955.




.

.

1,513,595,324

State

Loans

Real Estate Loans

.'

Acceptances

Ownership

of

the

of

Securities .'

annuity,
any

to

36,124,557

Other Assets

.

.

Transit

in

.

with

,

,

,

..

"

Total

.

24,496,048-.

•.

of

1,1955

464,750

.

35,421,353

......

,

.

.

33,832,073

.

£200,000,000

{10/)00/)00

Stores—$20 Par)

Surplus

6,981,576

,

,

6,000,000

.........

1,573,247

.

Undivided Profits

.

,

,

,

300,060,010

.

.

57,475,822

557,475,822

Total

£6,703,126,941

....

£6,703,126,941

Figures of Overseas Branches

are as

of September 25.

$429,860/,68 of United States Government Obligations and $27,046,900 of other assets are pledged
to secure

Public and Trust Deposits and lor other purposes required or permitted by law.
member

Chairman of the Board

K0W/\J^

federal deposit insurance corporation

Chairman of the Executive Committee

C. SHEPERD

President

JAMES S.

ALEXANDER C. NAGLE

Vice-Chairman of the Board

ROCKEFELLER

RICHARD S. PERKINS

CITY BANK FARMERS

the

pay

of

Trust
Head

fore, that the annuitant (and not
the company) takes the risks of
fluctuations

the

of

Company

reserves

set
up
by
insurance
companies.
This
means,
tnere-

Office: 22 William Street, New York

Affiliate of The First National

City Bank of New York for

administration of

trust

separate

functions

com¬

stocks, mistakes in mortality,

mon

in

and

tables

projecting common
Thus, an individual
in purchasing a variable annuity
is in effect making an investment
in a common stock portfolio and
stock

the

all

fluctuations
chaser

risks

also

stands

increase

any

any

value of the
As in the

mutual

of

Of

profit
market

stock.

an

investment

sum

periodic

or

Under one proposed
legislation, the annuitant can also
purchases.
any

render

units

of Condition

as

time obtain the cash
value

in

of

much

redemption

his

the

of

sur¬

accumulation
same

fashion

Therefore,

mutual

until

Banks

from

0. S. Covfrnmfnt Obligations.
Cbljga'ijons
Agencies
State

and

of

Loans

and

at

units, the vari¬
able annuity
participant has, in
'effect,
purchased
mutual
fund
and

salesman

is,

the

in

.

£ 32,360,995

,

.

79,689,289

3,303,124

Other Federal

Municipal Securities

.

Advances

Real Estate Loans

.

and

2,708,950

in

Capital

Other Assets
I otal

600,000

,

.......

•

i

/

i

;

;

!

£108,419,882

i

5,780,262

\

,

.

£ 10,000,000

.ill!

i

10,000,000

.

12,079,526

,

.

,

2,455,297
3,313,349

.*.••*•«•

.........

i

.

1

Securities

Federal Reserve Bank

Bank Premises

i

4,367,796
Surplus

Stock

i

••••it.

CIncludes Reserve for Dividend $500>902)

17,480,869

.

,

......

•

Reserves

-

.

.

Undivided Profits

£146,279,670

Total

.

.

.

,

.

.

32,079,526

£146,279,670

$8,643,237 of United States Government Obligations are pledged to secure
Public

units into annuity

shares,

LI ABILITI ES

.

.

.

.

Due

and

fund

least

of September 30, 1955

ASSETS

Cash

C'ihfr Securities

ther, annuitant

funds,

make lump

to

the

in

common
case

pur¬

stocks.

common

he

market

of

does

as

of

course,

may

tatement

yields.

taking

as

Merger Dated March

Dividend

Branches

......

.

Other

•.

.

7,000,000

....

normally

market

and

Capita i

Items

25,105,800

Interest, Taxes, Other Accrued
Expenses, etc.

15,000,000

International

.

,

.

for:

Unearned Income

37,551,088

.

39,444,788

23,619,654

Foreign Central Banks

Payments-Under Agreement

........

Bank Premises

£6,014,718,380

,

number

fixed

creation

the

to

Reserves

for

Banking Corporation

A

{In Foreign Currencies)

158,996,250

annuity units, there is no

for

need

Due

2,792,332,080

*.

.

Federal Reserve Bank

in

.

£63,064,442

,

Portfolio

Unearned Discount
and

Customers' Liability

Stock

.

.

Bills.

and

ances in

597,335,079

•,

.......

Discounts

and

45,789,692

.

Other Securities

.

Accept¬

on

Less: Own Accept¬

.

Municipal Securities

and

.

Liabilit^

Other Federal

of

Agencies

of
dollars, but merely the asset value
annuitant

Deposits

£ 1,457,015,975

com¬

to

er's

,

ances

Obligations

under

guarantee,

shares.

stock investment.

LIABILITIES

Banks

from

the market.

life

the

Since
pany

of September 30,1955

as

or

he has converted his accumulation

obligations, it is necessary
segregate the variable annuity

Due

and

U. S. Government Obligations

he specifies.
What he gets each year will then
depend upon the asset value of
the annuity
units.
Because the

of

Branches Overseas

ASSETS

Cash, Gold

such other periods as

fluctuations

Office: 55 Wall Street, New York'

73 Branches in Greater New York

the above factors

they remain fixed

determined,

CITY BANK

Statement of Condition

life

effect,

insurance

selling

a

Deposits and for other

purposes

required

or

permitted by law.

member federal deposit insurance corporation

Chairman of the Board
HOWARD C. SHEPERD

Vice-Chairman of the Board
LINDSAY

BRADFORD

given

of state laws

A number

beyond

go

inter¬

be

ofNew York
Head

was

concerning

FIRST

NATIONAL

and

owner.

securities he is purchasing so

est, however, is an entirely differ¬

passed

a

and converted into annuity

value

at

and

of

shares

as

dollar

'

Selling

a

information

that he could make

Annuity—Not Insurance

Variable

purchases,

Act

purchaser

sufficient

decision.

pay¬

he

com¬

ready to retire, his accumulation
units are valued at the then asset

because the

stocks,

other assets of the insurance com¬

common

have

states

annuitant

the

As

manner

the

When

in

debt

Most

agreed-upon

stock

Securities

tive

laws;

all he needs to know.

company

the

general economic conditions.

com¬

purchases.invest¬
company shares.
Each pay¬
purchases additional units.

ment

legislation is to permit life insur¬
ance
companies to sell annuities
which constitute an ownership in¬
terest in a diversified holding of

are

such

fund;

as a

by

pany

the

securities

of

passed in order that the prospec¬

the contract is fair and
will be paid, this is

as

The

namely, his pay¬
ments would go to purchase units
at the then value of such units,

payments by the annuitant pri¬
marily in common stocks.
Tne
essence
of the variable annuity

common

ments.

payments accumulation

same

mutual

with its traditional policy of guar¬
vests

make

accumulation
As I have

units would be credited

not enacted.

Insurance

to

.

the

The

insured

following

the

primarily

stocks.

makes his

Department is

dition

than

the

value

He becomes in effect

af¬

safeguards

and

under

long

so

the

information
that it

insurance

namely,

consist

mon

S.

Corn-

In New

in¬

up

—

would

missioner,

ties

other

risk

no

said, the assets behind such units

Knowlton, In¬

was

The

sured, in taking out such policies,

units knd annuity units.

committee

bill

number of dollars.

a

the

and

depend, upon the busi¬
operations of the companies

whose

to have the

insured

the

will

upon

There is, therefore, no

one.

for the

protection

pay

appear

in

life

A

set

issued

the bill at the

surance

fair

need

forded

guarantees to

company

variable annuities
the assets behind
such annuities in a segregated ac¬
count. Within this segregated ac¬
count two types of units would be
would

of

appeared

hearing.

is

for this; under

issuing

pany

Com¬

State

the

There

contracts.

reason

Annuity

the

would

operate

manner.

Deputy Se¬
missioner

good

instance

Operate

from

take,

hand

at

in

shire.' As

curities

insurance

very

assumes

While it is not clear from

would

New

a

a

legislative proposals exactly what
precise form a variable annuity
will

in¬

was

troduced

Would

bill

compa¬

Variable

the

espe¬

issue

variable
nuities

How

spent considerable time

subject of this talk,
cially since February when
to

stock
ness

position to pay
the
beneficiaries; and

his

this

In

return

"annuity" should not be applied to them, because
they lack provision for fixed payments.

the

nies

The

(2) that the insurance contract is

fixed
<

provided under the Investment Company Act. Stresses the
dual aspect of variable annuities, and concludes the use of

on

these

of

will be

or

the

variable annuities are, in essence, mutual funds, and there¬
fore come within the field of securities regulation, such as

the term

all

company

insured

matter.

public is not guaranteed anything.

the amount it has promised to

se¬

the normal life insurance contract

Holds

contract.

Practically

sale of

of

Speaking in opposition to variable annuities, Mr. Sheldon
explains how the variable annuity would operate and points
an

the public

ent

regulations to

that the life insurance

company's assets and reserves are
maintained in such a way that the

well

as

(1)

ensure

laws exempt the issuance and sale

a

annuity is not

insurance laws and

prices

public interest enacted laws

curities.

Deputy Securities Commissioner, State of New Hampshire

an

fluctuate, most states,

regulating

President, National Association of Securities Administrators

such

stock

common

the Federal Government, have

in the

By SIMON M. SHELDON*

out

Because

T

President
RICHARD S. PERKINS

48

«

(1398)

The Commercial and Financial Chronicle

analysis of Texas Industries, and

a

memorandum

United

on

Biscuit Co.

Dealer-Broker-Investment
Recommendations & Literature
It is understood that the

firms mentioned

send interested parties the

to

Atomic Energy Review—Now
120

will be pleased
following literature:

Bank

Kimberly
Mason

booklet—Harris, Upham & Co.,

New

Superior

Hickory

80 Wall

Pan

Bonds—Bulletin—Vilas

&

Hickey,

Organization,

Broadway,

100

&

49

Co.,
Stock

Exchange, have announced the
opening of the new offices at 1
Wall

Street, New York City.

With Newman & Co.
COLORADO SPRINGS,

Limited,

42

Company, Mining Exchange Build¬

Investing

ing,

members

World

Inc.—Bulletin—$2.00

Airways,

Lewis & Co., 63

H.

per

copy

COMING

Wall Street, New York 5, N. Y.

Riverside

S.

Taxation

Conventions

—

Analysis

—

Nomura

Securities Co., Ltd., 61
Broadway, New York 6, N. Y. Also
same issue ''Nomura's Investors Beacon"
are discus¬
sions of Bank Rates, and
analysis of Business Results and
in the

Outlook, and analyses of Mitsui Chemical Industry Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas
Co., Ltd.,
Tokyo Electric Power Co., Ltd.

Office
South

EVENTS

Over-the-Counter Index—Folder
showing an up-to-date Com¬
parison between the listed industrial stocks used in the Dow-

Co., Inc., 30 Broad Street, New York 4, N. Y.
Cement

&

Co.,

&

Converters, Inc.

Memorandum

—

—

Arnold Feldman

Spencer Chemical Company—Report—Spencer Chemical Com¬

Inc.,

46

Front

Street,

New

Over-the-Counter-Stocks

designated and price

—

List

of

485

companies

industry
& Co., 74

grouped—Troster, Singer

Trinity Place, New York 6, N". Y.
Philadelphia Bank Stocks—Comparison of 11
largest Philadel¬
phia banks—Stroud &
Company, Incorporated, 123 South
Broad Street, Philadelphia
9, Pa.
Public Utility Common
Stocks—Tabulation—G. A. Saxton &
Co., Inc., 70 Pine Street, New York
5, N. Y.
This

Is

Bank Building Corporation
Illustrated
Building Corporation of
America, 9th
Streets, St. Louis, Mjo.

booklet

—

Bank

*

American

♦

Chain

&

—

Stocks

and

Convertible

Bonds.

Inc.—Analysis—Sutro
Street, San Francisco 4, Calif.
Twist

Gannon,

Drill

Incorporated,

Mass.

United

Company

•

■

States

—

161

&

Co.,

407

Montgomery

Memorandum

Devonshire

Street,

—

Point

Winn

&

Co.—Memorandum—H.

&

Co.,

Hentz

Company—Nine

Grocery Co.—Annual report—Winn & Lovett

Co.^Jacksonville, Fla.

Anheuser-Busch Inc.—Memorandum—White
& Co., Mississippi
Valley Building, St. Louis 1, Mo.

Inc.—Momorandum—Dean

gomery

Street,

memoranda

on

Inc.

Co.,

45

Natural

Natural

Gas

Gas

Corporation—Annual

Corporation, 407

Securities

Wash.

Association

Bros. &

Cliffs

Iron

Company—Study

and

Co., 120

19,

1955

annual

the

—Analysis —J.

York 6,

N. Y.

R.

Also

Dec. 2,

At

its

TRADERS

Annual

ASS'N

Meeting

of

OF

DETROIT AND

Directors,

MICHIGAN

Williston

the Securities

Traders

Association of Detroit and Michigan, Inc., has elected the follow¬
new

officers for the fiscal

y^ar,

1955

jppyi.i»

UNITED STATES

LITHIUM CORP.
and

EMPIRE PETROLEUM

CO., INC.

monthly "Investment Letter."

General

Signal—Memorandum—Walston

Broadway, New York 5, N. Y.
Gulf

Coast

Leaseholds

IncJ

—

Circular

M

Co.,

36

Wall

Street, New

For

&

5,

N.

Banks, Brokers

Still Available—

Y.

Also

&

Members: N.

74

Y.

available

Industry designated

is

with

fjoratxra Securities
Member

on

HEnderson 5-1300

page

14

DEPENDABLE MARKETS

lamborn & co., inc.
99

WALL

STREET

NEW YORK 5, N.

N.A.S.D.

and
on

SUGAR

'

Raw

—

Refined

—

Japanese Stocks and Bonds
without
NY

1-

376

Y.

Broker and Dealer

& Co.

Security Dealers Association

broker.

YOUR

Teletype JCY 798

Continued

an

Material and Consultation

Trinity Place, New York 6, N. Y.




attention

BOwling Green 9-4058

©o., Xtd.

—

merit

SITUATIONS"

Exchange Place, Jersey City 2, N. J.

Co.,

\

2-

15

Treasurer—Harold J. Burrows, Watling, Lerchen & Co.
&

& Dealers

Troster, Singer
2400

Curtis.

Secretary—Robert J. Moons, Manley Bennett & Co.

*

Companies

to

Julius Maier Co., Inc.

Vice-President—Victor A. Williams, Paine,
Webber,

price grouped

HA

ask

Harold J. Burrows

President—Roy F. Delaney, Smith, Hague, Noble & Co.

"Your Over the Counter List"
485

Robert J. Moons

Jackson &
—

Telegraph—Analysis.—-Bache

York

Roy F. Delaney

120

Singer, Bean
Mackie, Inc., 40 Exchange
Place, New York 5, N. Y.
International Telephone

believed
"SPECIAL

UNUSUAL GROWTH POTENTIALS.

Gas—Analysis—Ira Haupt & Co., Ill
Brhradway, New
T
Railway

as

of

York 6, N. Y.

General

(a Colorado Corporation)

115

copy

(New York City)

the Bankers Club.

Seattle

Co.,
a

Holly¬

Oct. 1, 1955, to Sept. 30, 1956:

are

&
is

at

Security Traders Association of
New York Annual Meeting at

appraisal—Sutro

available

(Hollywood,

Convention

—

Stores

2, 1955

Investment Bankers Association

—

Broadway, New

City)

York

(New

Florida)

Broadway, New York 5, N. Y.
Federal and State Stock
Original Issue and Transfer Tax Rates
Booklet
Registrar and Transfer
Company, 50 Church
Street, New York 7, N. Y.
Fitzsimmons

Exchange

Stock

ernors.

Chicago Transit Authority—Bulletin—John
Nuveen & Co., 135
South La Salle
Street, Chicago 3, 111.
Cleveland

of

meeting of Board of Gov¬

wood Beach Hotel.

report—Cascdd#*

Building,

Convention.

(Hot Springs, Va.)

National Security Traders Asso¬
ciation Annual Convention.

Nov. 27-Dec.

Notes

NSTA

Mont¬

San Francisco 6, Calif. Also
available, are
California Packing Corp. and Pabco
Products

1957

dinner dance at the Hotel Com¬

ing

Cascade

1,

&

Security Traders Asso¬

modore.

SECURITIES

Witter

Springs,

(Palm

1956

Security Traders Association of
New York cocktail party and

Bonanza Oil &
Mine—Report—L. D. Friedman & Co.,
Inc., 52
Broadway, New York 4, N. Y.
Bullock's

Nov. 3-6,

Nov.

months

report—Dept. 6,
American Marietta
Company, 101 East Ontario Street, Chi¬
cago 11, 111.
~

24-27,

Firms

—

Marietta

Caro-

Nov. 16-18 (New York, N. Y.)

&

& Cable Co.
Analysis — Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y. Also available is
an
analysis of American Enka Corp.

American

(Pinehurst,

1955

Dealers of the

Securities

National

Lines

Lovett

Grocery

14,

linas,
North
Carolina
Muni¬
cipal Council and South Caro¬
lina
Municipal
Council joint
meetings at Mid Pines Club.

10,

Boston

Co., 60 Beaver Street, New York 4, N. Y.

♦

&

ciation Annual

Manufacturing

Beefsteak

Annual

Calif.)

v,y-.

Van Norman Company—Analysis—Peter P. McDermott &
44 Wall Street, New York 5, N. Y.

Sidney

13

&

May

Co.—Memorandum—Hemphill, Noyes
Co., 15 Broad Street, New York 5, N. Y.

West

Oct.

Oct.

Card

York

N. C.)

Rand Corporation — Analysis in current issue of
"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
York 5, N. Y. Also in the same issue is a list of "Sheltered"

Union

New

Dwight Building, Kansas City 5, Mo.

Technicolor,

Bureau,

Y.

(New York City)

Party at the Antlers.

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

York

N.

Oct. 12, 1955

Security Traders Association of

Sperry

4,

Field

Post

Square, Boston 9, Mass.

Specialty

pany,

Investment

In

10

Carolina Electric & Gas Company—Report—Thomson

Jones Averages and the 35 over-the-counter
industrial stocks
used in the National
Quotation Bureau Averages, both as to
yield and market performance over a
13-year period —
National Quotation

v

views—Lerner

Co.—New

McKinnon, 11 Wall Street, New York 5, N. Y.

and

Midwest

the

Corp.,

Japanese-U.

&

of

Stock Exchange.

Quebec Chibougamau Goldfields, Ltd.—Bulletin—John R. Boland

Colo.—

Francis Jones is with Newman &

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill

Broadway, New York 7, N. Y.

Tsolainos

Street, New York*5, N. Y.

American

—John

Street, New York 5, N. Y.

&

members of the New York

Y.

Co.,

Co.—rReport—General

Copper

Quarters

Theodore

York 5, N.

New

Watt

Witt

Broadway, New York 4, N. YJ^Also available is data on
Imperial Oil and an analysis ofrav Bristol Oils Limited.
Old

In New

(Special to The Financial Chkonicle)

Limited—Bulletin—De

Canada

of

Oils

Theodore Tsolainos

•

Mines—Data—Alexander

Noranda

Co., Inc., 1033 Thirtieth Street, N. W., Wash¬

Railroad

Corporation.

Conklin

—
Study — Hugh W. Long and Com¬
Inc., Westminster at Parker, Elizabeth 3, N. J.

Yield

and

Street, Milwaukee 2, Wis.

opment

Cost of Higher Education

Wall

Corporation—Analysis—In current issue of
Financial Digest"—Loewi & Co., 225 East

Clark

"Business

ington 7, D. C.

High

Sons, 173 Portage Avenue, East, Winnipeg, and Royal
Building, Toronto, Canada.

&

son

Mines Limited—Review—James Richard¬

Gold

poration, 70 Wall Street, New York 5, N. Y.
Also available
are data on Petaca Mining Corporation and Shawano Devel¬

Atomic Reactor Diagram in four colors with
portfolio informa¬
tion on Atomic Fund as of June
30, 1955—Atomic Develop¬

pany,

Addison

Micro Moisture Controls, Inc.—Data—McGrath Securities Cor¬

Broadway, New York 5, N. Y.

ment Securities

Kerr

Thursday, October 6,1955

...

61

Head

Office

-tunrii..;

Exports—Imports—Futures

obligation

Broadway, New York 6, N. Y.
Tel.: BOwling Green 9-0186
Tokyo

Liquid

DEMPSEr-TEGELER & CO.

DIgby 4-2727

182

Volume

Number 5470

...

The Commercial and Financial Chronicle

(1397)

to

or

"The Antitrust Division

considered

are

predatory;

Looks at Bank

Mergers'7

result

firm

Assistant Attorney General of the

of

had

U. S.

for

show that as a
merger the acquiring

already obtained such

the Act is "intended to

acquisition

may

be

in

amount

to

Americans, have a vital stake in

fect

The

in

arise

may

such

as

become

has

trust

American

that

competitive economy on
which
our
political and social
freedom
in
part depend. These
laws have helped release energies
essential
to
our
world leader¬
ship, industrial productivity and
technological growth. Equaiiy im¬

reinforce our ideal
of careers open to superior skills
and talent, a crucial norm of a
free society.
As a result, the es¬
they

portant,

stand

anti-trust

sentials

of

claimed

by both political

parties.

parties' general agreement
on anti-trust goals, let me caution,
must not obscure important dif¬
ferences in means.
Here I part

immediate
predecessors on at least three
scores.
First, cases brought have
with

my

not at mere doctrinal

aimed

per¬

making

real

at

but

ambulation

/strides toward either cracking re¬
straints on entry, or controls over
Second, because business¬
know this difference in pol¬

price.
men

spell greater court suc¬

will

icy

have

settlements

pre-trail

cess,

violations and increased em¬

core

phasis-

alleviate prob¬

have moved to

we

Remarking on the

trust standards.

Act

man

Most

other

by

is one

thing that the people are entitled

law makers,
of law that will enable

expect from their

it is rules

individuals

tell

to

married and, if so, to

are

Almost, but not quite,
tant

guides

are

they

whether

whom.*'1

as

impor¬

in the anti-trust

on

euphemistically

anti-trust laws,

"One-half

observed that:

litigation

of

century

judicial interpretation has

and

able

of

ease

of uncer¬

hazards

the

than

to

not

consummated

stock

tion,

of life.

years

held

was

mergers

court

other

to

result,

7

fell short of

have

its

of

ing

undue

took

Brownell

office,

the

of

7's

1950

7

fashioning
it

re¬

more

clear

seems

amendment

beyond

mergers

Sherman

represent¬
fair cross-section of all anti¬

ing a
trust

yiews? tQ consider our na¬

in

to

the reach

Act.

Thus

that

Section

was

the

stop

of the
Senate

its report.

the

first

intended

not

to

revert

Sherman Act test.
*

*

*

is

to

well

attained

justify
ing."

in

Report

Act's

And now

intent

*

*

have

view of all major
decisions under the Sherman and
authoritative

Clayton Acts.

should

clude,
♦An
eral
ers

address

Barnes

by

1 Estin

Chicago,
v.

Asst.

Attorney

before the Independent

Association,

District,

This report, I con¬
be a real help to
Gen¬
Bank¬

12th
Federal
Reserve
III., Sept. 26, 1955.

Estin, 334

U. S. 541, 553.

231,

the

256

and Dumbauld. "Monopolies
Courts." 86 U. of Pcqn. L. Rev,

(1S38),




follows

the

that

Sherman

Section

is

to

have

to acquisitions

economically significant.
[The! various additions and

are
*

deletions—some strengthening and
others
not

weakening the bill

conflicting in

op¬

unlike

7,

ings and conclusions, not of actual

anti-competitive effects, but

mere¬

reasonable probability of

substantial

petition

or

lessening

of

tendency toward

mo¬

They

toward

—

purpose

namely
which
the

merely

are

the

are

or

that

of

different

framing

a

that

have

Clayton Act test
economic

no

reaches

far

signifi¬

beyond

the

In like fashion the House Com¬

prescribed, instead
to

be

similar

have

"are

intended

those which

the

applied in interpret¬

Thus, it would be unnecessary for

GEORGE

what is in the 'back of the minds'

those

3

who

promote

a

merger;

Anthracite v. F.T.C., 51 F.
Pennsylvania Railroad
F. 2d 37 (1933); 291 U. S.
651
(1934);
United States v. Republic
Steel, 11 F. Supp. 117 (1935).
2d
v.

Temple
656

<193lj;

I.C.C., 61

4 Sen.

Rep.

1775,

81st

Cong., 2d

Rep.

1775,

81st

Cong., 2d Sess.

Sess.

(1950).
5 Sen.

(1950),

pp.

4-5.

Board

than doubled to 207 in 1954.

important, the Federal Re¬

serve

Board Chairman

Commission jurisdiction by speci¬

this number is "still rising."

fying

that

"authority

enforce

to

compliance"
hereby
eral

with

vested

Reserve

cable

to

tions,

and

Board

banks,

that

Fed¬

where

associa¬

On

provisions this
to

came

asset

the

conclu¬

acquisition

by

banks is not covered by Section 7
amended

as

1950.6

in

Reaching
the
same
conclusion,
a
House Judiciary Subcommittee Staff Re¬
port explained that, because of revisions
amendments

Section

to

"*

7

♦

*

impracticable to include within
the scope of the act, corporations other
than
those subject to regulation
by the
Trade Commission. Banks, which
placed squarely within the authority
the Federal Reserve Board by Section
of the Clayton Act, are therefore cir¬

Federal
of

cumscribed

tion

insofar

as

mergers

are

Viewing the Bank

mittee

Merger Trend

viewed against the background of

commercial

present

concentration.

In

60%

of

sets.

all

And

commercial

each

in

than 40%

bank

con¬

on

(September

bank

of

these

gree

the

rise

is

New

York

City's in¬

the

concentration

deposits.

Figures supplied by that

State's

Superintendent

reveal

that

City's

four
of

in

1900

largest

the total

in

of

,

Vice-President

jumped to 53.6'% by
on

ASSETS

President"

State and
Stock

Bechtel Corporation

C.

$187,735,376

banks

151,196,427

CABOT

President

State Street Investment Corporation

of

62,860,783

municipal bonds and notes

1,800,000

of the Federal Reserve Bank

Other? bonds
PAUL

arid' securities

(including shares

Limited

Morgan Gr en fell 8' Co.
Cie. Incorporated)

and

18,913,388

Morgan

Loans and bills

353,376,647

purchased

S. CARTER

BERNARD

Accrued interest, accounts

Chairman

Morgan & Cie. Incorporated

S. CHEST ON
COLLYER

JOHN L.

4,127,210

receivable, etc.....

Banking house

3,000,000

v.

Chairman

Liability of customers

letters

on

13,311,414

of credit and acceptances

$796,321,245

...

The B. F. Goodrich Company

II. P. DAVISON

LIABILITIES

Senior Vice-President

RICHARD

R. DEUPItEE

Deposits: U. S. Government

$ 34,428,700

..

Chairman

All other

The Procter & Gamble Company

634,99<\.542
32,94^,798

.

Official checks outstanding

Chairman Executive Committee

Director

Morgan & Cie. Incorporated

DEVEREUX

C.

jSSEPHS

New York Life Insurance

Company

S. LAMONT

THOMAS

$702,369,040
Accounts

N. I). JAY

6,974,702

payable, reserve for taxes, etc

Acceptances outstanding and letters of
credit issued

.

i

13,579,413

:.

30,000,000

:

Capital—300,000 shares

30,000,000

Surplus
Undivided

13,398,090

profits

$796,321,245

R. C. LEFFING WELL
Vice-Chairman
United

L. F. McCOLLUM

States Government

the. above statement
secure

are

public monies

securities carried at $47,677,227

in

pledged to qualify for fiduciary powers, to

as

required by law, and [or other purposes.

Conlineirtal Oil Company

GUSTAV METZMAN
JUNIUS

S. MORGAN

Member Federal Reserve

Member Federal

System

Deposit-Insurance Corporation

Vice-President
ALFRED

P. SLOAN, JR.

Chairman

General Motors Corporation

JAMES

L.

THOMSON

MORGAN 8'

CIE. INCORPORATED

1ft, Place Yen do me, Paris, France

Finance Committee

Hartford Fire Insurance Company

£OHN S. ZINSSER
Vice-Chairman*

MORGAN

GRENFELL 8' CO. LIMITED

Merck & Co., Inc.

S3, Great Winchester Street,

had

deposits./Th^s

Continued

United States Govern ment securities

BECHTEL

STEPHEN D.

York

banks

Vice-Chairman

I. C. R. ATKIN

Banks

New

Condensed Statement of Condition September 30, 1955

hand and due from

bank

creasing

NEW YORK

on

16

of all commercial

J. P. MORGAN & CO.

Cash

as¬

Suggesting this de¬
of concentration may be on

1952)).

M. ANDERSON

of

assets.

number had

Committee

16

centers, the first two banks owned

No.

the

asset

of

principal financial cen¬
ters, two banks owned more than

20.8%

of

bank

nine

America's

only by the old provisions of Sec¬
♦ *" (Staff Report to Subcom¬
5

a

This bank merger trend must be

*

7

As

this

it

became

are

estimated

more

6

in

he

year's
total "may reach around 240."

appli¬

companies."

these

Department

"is

7

the

banking

trust

the basis of

sion

Section

* * in

*

result,

concluded,

President

ARTHUR

merg¬

Most

WHITNEY

C. ALEXANDER

HENRY

of

ers

Chairman

the Government to speculate as to

of

the

INCORPORATED

President

to

of

Board, concluded that bank

Senior Vice-President

mittee Report states that the tests

courts

Chairman

more

the

DIRECTORS

Chairman

cance,

the

Governors of the Federal Reserve

Sec¬

of

11

Cong., 2d Sess.

bill

although dropping portions
so-called

robating the rise in bank mergers,

Judiciary, House of Representatives, 82nd

nopoly.

ef¬

objective,

same

consolidations,

Clayton Act ex¬
empts banks from Federal Trade

tion

cerned

com¬

[bank] mergers,
and sales."
Cor-

Federal Trade Commission."

11

a

CHARLES D. DICKEY

steps

of

fair

requires find¬

Act,

CHARLES

states

2 Jackson

and

it

proceed¬

On
ing the same language as used in
rendered other Sections of the
Clayton Act.
gathered for
is an

From this

"this

as

of

would

as

Act

further

"broad application
that

incipi¬

they

effects

Sherman

the

the

monopo¬

their

before

such

a

The

that

with

cope

tendencies

and

to

The intent here

that group

time in one place

a

portunity to compete."

Report 4 explains that the "bill is

tion's anti-trust policy.
31 of this year

relationships

deprive their rivals of

Congressional

rules against mergers.
this

of

between buyers and sellers which

trend

preced¬

Section

apparent
of

This

power.

immediately

Congresses's objective

he

appointed a study group,

establishment

or

has

acquisition portion, in sharp
contrast, covers only corporations
"subject to the jurisdiction of the

concentra¬

amendment

veals

competing enterprises,

described

recent

"have gone up steadily."
In
1952, his testimony reveals, there
were 100 bank mergers. This num¬
ber jumped to 116 in
1953 and

asset

to stop, in

economic

background

As

its goal

incipiency,

tion

of

Comptroller of the

Currency

been

Sherman Act." 5
eral

number

the

in

with what the

had

urged that Section

many

acquisition bar
applies to all corporations "en¬
gaged in commerce."
Section 7's

result,.Section 7 is for
purposes useless to cope

a

those

barred by former provisions.3
a

reduction

undue

stock

As

practical

addi¬

constricted

intended

mergers

Old

interpretations

and

substantial fac¬

a

cover

by
In

acquisition.

narrowed

Gen¬

tainty, soon after Attorney

cisive,

a

7

or

enterprise

an

section, however,
asset acquisitions by

ways;

whole*

competition, increase in the
relative
size
of
the
enterprise
making the acquisition to such a
point that its advantage over its
competitors threatens to be de¬

up

previous 36

in

the competi¬

of

Amended

tor in

ly of

respected."2

or

To

not

understand¬

law either

the

made

2.

7, Congress sought to patch
holes developed in the Act in

Section

various

in

part

activity

tion

its

Com¬

pro¬

Section

By its 1950 amendment of Sec¬

fect.

ing somewhat less

Act's

cordingly, to that section I turn.

Justice, comment¬

field. The same

monopolize

that

acquisitions, however, arise
under Clayton Act Section 7. Ac¬

listic

Jackson observed: "If there

to

evidence

may

important problems involv¬

ency

Mr.

late

anti¬

ing

Justice

the

area,

also

and

attempt

an

scribed

of our law in an¬

state

confused

uncertain anti¬

in

inherent

lems

negotiations,

consent

on

particular

afoul of Section 1 of the Sher¬

run

lar.

hard¬

Mergers

problems bank mergers may
raise. Mergers, you all know, may

From

Beyond concentration on

Bank

trust

results for enforcement

more

of

consider

Thus we secure objective
dol¬ stringent

jumped sharply.

to

I

set,

pro¬

Both

company

the law.

These general enf orcement goals

assuring

for

means

Problems

distinctive

a

the

of

House

elimination

material

tive

For anti¬

anti-trust enforcement.

violation

a

of

vigor

though this: ef¬
far-reaching as

even

Act.

signifi¬

a

mittee Report states: "Such an ef¬

businessmen seeking in good faith
to live within

per¬

cumu¬

a

the

reduction

Sherman

*

when the effect of

process

competition,"

*

*

in

fect may not be so
to

exclude

or

fix prices.'" More¬

or

which has been

.

well, acquisition of assets.

as

The

cant

legislation should apply to all business alike, and urges legis¬
lation to provide anti-trust treatment for banks.
most

but

banks.

an

Department has come to the conclusion that asset acquisition
by banks is not covered by the amendment. Holds antitrust

like

then,
in
1950, in an attempt to bar
mergers, which were accomplished
not only by acquisition of stock,
amended,

was

cover

lative

appointed to clarify the anti-trust laws.

executives,

7

The

mit intervention

Refers to the report of the
Says
bank mergers pose an antitrust problem since they may run
foul of the Clayton Act. Congress amended this act to stop
mergers beyond the reach of the Sherman Act, but the Justice

Bank

a

Section

fails to

to 'destroy

power

over,

with the antitrust prob-

lems bank mergers may pose.
! study group

or

the

Mr. Barnes first outlines the Administration's broad policy
up

unethical

to

or

a

competitors

enforcement, and follows it

acquiring The Section 7 Amendment of 1950

the
be

to

degree of control that it possessed

By STANLEY N. BARNES*

antitiust

that

prove

firm had engaged in actions which

9

London E. C. i, England

page

20

10

^398)

The Commercial and Financial Chronicle

-

out

Amendments to Reassert

impairing the power of Con¬
to raise revenue, especially

military

purposes.

.

Thursday, October 6, 1955

.

The Role d Gold in

gress
for

.

This amend¬

ment limits the top rate of income

"shamefully violated the rights of the
people by socializing instead of protecting our lives and propCTty," Lists five proposed Constitutional amendments to curb

after the Revowas
won
against

ment.

to

subsidize

ington

today

rule

over

them.

they de¬
veloped
con¬
among

selves.

New

lev-

ied

tax

a

against the
They

stopped

Connecticut

the

thrifty

Yankees from

bring-

cabbages and firewood
down to the city. Virginia quarreled with Maryland over the fishing rights in the Chesapeake Bay
the Potomac River.

The Fed-

eral

Treasury
could
raise
no.
money
unless the states voluntarily provided it. It could raise

110

army except from volunteers,
Some of the states refused to volor

ehusetts

supply

Virginia

hardly worth saving,

so

fused

to

to

send

Massa-

money.

thought

out.

troops

was

they rehelp her

"■;

in

Annapolis, Md., Sept. 11,
1786, to consider a form of a very
contract

Central

to

be

made

Government

to

with

be

es-

tablished.

ing to the New York State Tax
Commission. It claims to manage
it better than the people of New
York can manage their own money
for themselves,
Central

All

Governments

are

central

merit

governments

are

formed, special interest groups or-

the political
for

ganize to

use

of

governments

such

benefit.

special

That's

power

what

founders feared most of all.

the

So it

has happened to us, as they feared,
It has happened to all nations be-

likely happen to the
nations of the future,
The

remedy

is

to

reassert,

in

unmistakable larguage, the terms

of

the

contract

Supreme
States

so

Court

that

of

cannot

the

even

the

United

misinterpret

it.

is

of

especially taxing
Government,

pending, State Legislatures are
considering their approval, corn-

so

and

up.

Central

a

they refused to

attend the

con-

ference.

mittees
wide

Finally they made

an

agreement

that

the
Federal
Government
should protect the lives and
prop¬

erty of the people

on

the Federal

level, levy taxes for such protec¬
tion
and
substantially
nothing

in

Federal

Hall

at

Wall

on

and

the steps

Nassau

Sts.,

City, Sept. 15, 1955.

being

formed

on

Five

Amendments

They
to

the

propose

Consti¬

heavy

to

a

large

progressive

our

extent

rate

hint

Carolina's total

at

Among

some

sales and

of the storks

markets for—are the

we

.

.

.

Jefferson Standard Life Ins. Co.

the

vent

overriding

stitution and

Company

Piedmont Natural Gas

The

road

To

power

to

without

for

is

of

to

To pre¬

Con¬

cur

these

of

make

Amend¬

America

safe

tomorrow.

found in

Nothing can be
them that is reactionary.

They

dealing only with the realities of
today

and

could
to

the

of

hardly be

the

a

future.

There

better memorial

Constitution

this

on

168th

Anniversary than citizens actively
campaigning in the State Legisla¬
tures

and

in

Amendments

the

Congress

reasserting

This

the freedom
is

a

the individual.

of

individuals

the

are

forces

of

in

the

It

creative,

it

can

cannot

was

stitution

the
in

for

for the

It

is

plex

only

Government

in

Co., 30 Broad

that

of

Exchange,

process of

The

that

vvithTKinrm

that

Samuel

C.

been

retained

as

Mr.

with

thereto

and

Greenfield

investment

Bittner

Shaskan

has
&

conducted

has
con¬

recently
Co.

and

his

own

investment business in New York.

Salomon Bros. Admit
PHILADELPHIA,
Obendorfer
New

contact—

on

York

Oct.

of

Merrill Lyncii, Pierce, Fenner
70 PINE STREET




Bros.

&

Beane

the

firm's

&

Pa.-Herbert
13

will

be

Hutzler.

Mr.

been

co-Manager
Philadelphia office,

123 South Broad Street.

Louis W.
&

Co..

York

is

City,

passed

away Oct. 2 at the age of 67.

gold

we

it

operates. It
these forces

gauging
avoid

can

which

find

examine the

must

which

by

to

the

in¬

be

to

seems

associated

confused

with

mone¬

In
ard

the days of the Gold Stand¬
certain freedoms applied to

the possession of gold. These free¬
doms
represented forces
in the

of the currency to which
a
given quantity of gold is equated.
While gold serves as
money we
can
disregard its subsidiary uses

like

ornaments, dental or book¬
binders supplies because its value
these purposes flows from its
value as money.
for

We
to

therefore, driven back

are,

the

of

one

cepts

of

of
a

between

The

Price

of

Gold

therefore to focus at¬

tention

on
the functioning of the
monetary mechanism and to avoid
the many side issues which usu¬

bedevil

all

discussions

doing

so

I

shall

on

deal

with the forces in the mechanism,
and as the price of gold is one of
the

most

forces,

I

shall

forgotten

start

by

dis¬

cussing it.

be changed. When the Cap¬
of the "Pinafore" said that

never

tain

he

"never,

was

and

asked

was

replied
ever."

never

weakly:
And

"well,

the

so

sick at sea"

"what never?"

he

hardly

believers in

a

fixed price of gold w'ould also say
that the price of gold should hard¬

be changed and certainly

ever

the

at

time

when

such

a

change is proposed. Why is there
this persistence in the belief that
the

price

fixed?

of

gold

What

are

should

the limits for the

is

clearly

express

no

the

given quantity of gold in terms of
given paper currency or money

a

of

account.

related

of the earth
at

all

'*A
at

When

as a

times

the

measure

the

to
so

metre

was

of length it

circumference

that its value could

be

equated to

some-

delivered bv Dr. Hol'oway
the University of California, Berkeley,

Calif.

paper

is

an

side

of

all

at

not

But\it demands

divested

personal

as

philosophical

or

an¬

issues—

interest, credit

or¬

and in giving the in¬
right to his own earn¬
ings and his own savings. In a
purely scientific sense money is a
resources
a

of

measure

exchange
These

value,

and

essential

are

and

of

of

value.

functions
free

a

for

society
Money

advanced economy.
all the requirements

an

must

medium

a

store

a

the maintenance of

meet

under

these

three

heads

the

and

efficiently it meets them the
it

better

is

as

instrument

an

of

production. If the monetary mech¬
is

also

used

like

purposes,

economic

such

as

of

or

use

materially

very

function

for

other

manipulation

relations

exchange,

from

its

essential

an

of

foreign
detract

may

main

part

of

the

machinery of economic effi¬
ciency and as a safeguard of in¬
dividual liberty.
These are such
high values for the maintenance
of civilization that the application
of the mechanism of money to any
other

must be regarded

purposes

alt

by

civilized

states

highly-

as

questionable.
This essential function of
money

has
in

sacrosanct
value of a

of

ganization or governmental ma¬
nipulation—of the functions which
money plays in giving human or¬
ganization a more efficient use of

remain

validity of the concept?

meaning

pockets and

In itself, and

tnK latter

difficult.

alysis,

anism

The view is held by many per¬
that the price of gold should

sons

con¬

essential mechanism

an

purely scientific

concept,

more

frequently

the
own

free society.

a

dividual

I propose

difficult

most

economic

science, the
function of money. I say that this
is a most difficult concept, for few
people seem to be able to differ¬

its

mechanism.

something

er

like

tary disputations.

to

only in
changes in the use of gold or in
changes in the "purchasing" pow¬

as

want

we

with

only

par¬

factors which influence the
equa¬
tion
of
value
can
lie

money

Noland, Finch Wilson

New

consideration

we

efficiently,

accepted

Louis W. Noland

Offices in 107 Cities

so¬

of

in their

was

NEW YORK 5, N. Y.

productive

value

entiate

is

a

unchangeable, and as gold itself
is elementally
unchangeable, the

money

forces

the

expresses

gold in terms of

out

partnership in the
Exchange firm figure to

has

we

mechanism, and that

a

if

Stock

of Salomon

order,

production.

is

There

to

Obendorfer

Trading Department

it

which

of

in what respects it is not working

not

Herbert Obendorfer

Company

re¬

our

second

therefore

the
an¬

MXHJ^WLJgittner is

associated

sultant;

Street,

members

Stock

to

essential part of the

an

moneyIn

Murray Bitlner Now
With Hardy & Co.
City,

working

highly

It is

ally

York

want

we

been

and

ciety.

Con¬

the

1955.

York

many

society,

reason

1789.

reason

and

car

the vast world of invention which
has made possible a highly com¬

and
the sole object of Government is
to protect and not to
exploit them.
That

motor

a

undergone

on

has

argument

faith,

Holloway

knowledge of
developed, what
accomplish and what it
accomplish. It is a part of

it

that

expanding

means

declaration

new

admitted

simply

rely

how

defining and clarifying the orig¬ variably

ernment.

or

to

re¬

and-

J. E.

When
it

for

inal concepts of the limitations on
the powers of the Central Gov¬

the

has

ages.

un-

ticular currency at a
particular
time. Because as we cannot
equate

rail¬

it

and most

underlying assumption in

equation

other

engine

a

a

concept.

some

value

improvements throughout the

reasonable and practical,

are

is

ex¬

that

d because

the equation 1 ounce of
gold = U.S.
35, or for that matter in any other

mon¬

a

store

treaty power.

nuroose

ments

Rose's 5, 10 & 25 Cents Stores

Wacho via Bank and Trust Co.
quotes, prices,

is

piece of meehample

monetary

subjective and not

are
therefore
inevitably
driven back to the fact that there

siderations.

prijorv,

a

eternal

be deter¬

We

insuffi¬

any

such

notoriously unstable

weight to
two prime con¬
first

value is itself

eternal

cient

The

No

can, however,
mined for gold because

historically

this

like

domestic law by

our

of the

means

Occidental Life Insurance Co.

Casualty Insurance Co.

details,

gives

eternal.

equation

eternal concept a
unit of currency is

discussion

ly

Drexel Furniture

For

of

currency.

a rigid
gold is liberty."

me,

thing

paper

opposed to

as

an

work¬

Much

must

been
own

full

Constitution

prior
our

Erwin Mills, Inc.

Company

put

order.

take

to

Bricker Amendment.

5.

New

following:

Bell, Inc.

to

represents

the intervention of Congress."

New

.

machinery and mining
income, top the South—

designed

States

the

nounce

to

buy and sell—or make

Corporation

American Trust

Carolina

ing

required

invention

college system.

the

to

amend

Hardy &

better than average investment
opportunities.

American Enka

Blue

sound

ey

Reed-Walter Amendment.

give

now

leader in tobacco, cotton
textiles, wooden furniture

North

of

into

an

the

feature

income tax system with-

(Sleeper in the South?)

food

4.

sound

1. Reed-Dirksen Amendment. To

from

diversified from fishing and

I

a I that

tution:

NORTH CAROLINA
B IG

methods

This

Senators.

is

electoral

ent

productive

Memphis, Tenn.

eliminate

^Remarks by Contr. Gwinn
New York

are

scale.

Particularly, there is the "Cam¬
paign for the 48 States" organized

,

of

state's'' two

each

the

away

their

of

of

States

guilty of this kind of violation of
the people.
From the very mo-

jealous

power,

with

United

excessive power now
exercised by the minority groups
in the larger cities under the pres¬

independence, too fearful

showed

too

were

respond

amendment

their

powers

back

anism of

others

the

the

it

districts plus two at large to cor¬

The

states

mechanism

that the mech¬

There

five

on

choosing electors by congressional

and

V^eing organized in our
country today hundreds of efforts
to do just that. Proposed amendments to
the
Constitution
are

Only

the

To reform the electoral college by

its contract

fore—it will

Finally, ah invitation was isby Virginia to the states to

a

to be

emergency

by three-fourths vote

Mundt -Oudert Amendment.

3.

Whenever

money

Concludes, "for

money gets out of gear there fol¬
lows a vast amount of discussion

shame¬

sued

limited

dire

of

the Congress.

directly approximately 37 lk % of
the income of the people, accord-

their

unteer

times

determined

has

Government

appro¬

government takes directly and in¬

.

R»lph W. Cw.nn

business of New Jer

^

in

managed

a

standard of value.

violated the rights of the
people by socializing instead of
protecting our lives and property.
In New York State, the Federal

York State, for

example,

Fed^al

congressional

receipts of the Govern¬
that fiscal year, except

for

ment

fully

them¬

meet

limiting

To

balancing

priations in any fiscal year to the

of

breached

troversies

and

by

and

wheat, cotton and

corn,

bude^t

annual

estimated

the

But

ing

2. Byrd-Bridges Amendment.
"cqp're

pricing of gold,

the equation between gold and

on

Attacks theories of

rev¬

enues.

generally manage the income and
property of the people. By and
large these smaller political sub¬
divisions have kept their contract.

we

as

have in Wash¬

operate

butch¬

collecting

in

process

They have not gone Socialist. But

such

sey.

ering

exceptions, tax the people to
their
houses
and
power

plants and loan them money

let

government

a

enough to adopt

sense

the shearing instead of the

build

deter¬

mined
no

states have

the functioning

on

Holds price of gold should be changed when conditions
"over a
lengthy period" makes it desirable. Reviews the forces which

butcher and skin it once," and the

e^&e.

few

They

were

lamb

a

Holloway focuses attention

South Africa

monetary mechanism."

great many times but you can only

Its about the same kind of
lutionary V/ar
a Contract the people have with
Great Britain, the 13
Federated thd states, counties and cities,
states refused to organize any Cen- Their business is protection of liie
and property.
t r a 1 Govern¬
They do not, with
For four years

shear

can

States frcm Union of

of the monetary
mechanism, and discusses the
"a frequently forgotten force in the

powers

put it, "You

this trend.

t

^Ambassador

to 25% of all incomes.
The states long have objected to
the Federal monopoly in the field
of taxation. As one representative

ing

Constitution, it has

'

Ambassador to United

right to tax gifts and estates and
except in time of war or national
emergency, it is limited in its tax¬

Congressman Gwmn calls attention to the growth of pbwer of
the Federal Government. By breaching its contract under the

Monefaiy Mechanism

By DR. I. E. HOLLOWAY*

Federal Government is denied the

State of New York

U. S. Representative for

the

Under this Amendment

vote.

IION. RALPH W. GWINN*

By

The

taxes, but permits Congress to ex¬
ceed the limit by a three-fourths

Original Purposes of Constitution

been

analyzed

rial.
few

it is

yet

neop'e

described
it

and

textbook

common

And

and

treatises

numerous

become

has

mate¬

amazing how

remember

and

em¬

ploy the most elementary knowl¬
edge
when they are reasoning
about

monetary

therefore,

we

policy.

When,

trying

are

back to the elements of the

equation,
peat

we

some

mentary

professors

must

inevitably

simple

very

ideas,

the

taught

to get
simple

and

things

you

when

re¬

ele¬
your

you

»

Volume

still

were

Number 5470

182

very,

very

.

The Commercial and Financial Chronicle

.

.

stu¬

young

dents.

"We

learned

how

to

stream-line

the

ability, etc., gold established itself
as superior to all its rivals as the

monetary mechanism, to distin¬
guish between essentials and ac¬

Live

We

in

Money-Economy"

a

this

of

century

in

a

to

demonstrate

living
I shall try
are

money-economy.

presently that we
do
this
without

trying to
in any real sense of that
term.
Ages have passed between
are

money

most

cidentals, to shear it off appurte¬
nances
which
militated
against
more effective
functioning, to con¬
centrate

what

on

the

gave

(1399)

perfect monetary material.

A

Perfect

As

long

this

classification

essential framework for dis¬

an

because

tributive

had

the

invention

of

was

primitive

form

its

most

pri¬

our

mordial ancestors to devote

some

of their energies to more efficient
than

uses

scratched
tained

shelter,

these

for

his

at

best

or

under

under

a

individual

every

hunted

or

and

food

possible

was

where

system

own

the

have

been

meantime

purposes,

good,

some

visible.

Silk

Each of these embellishments is

a

most

It

is

over

not

the

ending
which

necessary

with
you

of

range

the

sur¬

held

to take you
words, each

divest

our enquiry of these
developments, which
mischievous imps to

subsequent
turn

up

as

distract

attention

our

from

precious metals
spect

of

as

In

money.

object, which
could be

measure,
as

possible,

rea¬

a

accurate equation of the
which

constitute

the

nomic

"ability"

world

could

attained.

Hence the idea of

be

eco¬

fixed and

a

also

re¬

the

difficulty

which

experience

people

the

hu¬

in

an

measure

of value.

For the in¬
a

reason¬

to

It has made it possible

long term contracts
involving millions of wage earn¬
vast

or

in

words

the

note value.

to

hold

contract

which

It has made it

assets

de¬

possible

created

by human
endeavor for long periods without
the fear that they will depreciate
or even disappear entirely through
a change in the reservoir or store
of value.

is

The invention of money

of the most fecund

one

tions of mankind
tion

of

value

as

as

and the

stable

of

measure

a

is possible

inven¬

inven¬

in

a

world of

the idea that—in spite

accept¬

of the

continuing, instability marks

ex-.

Newton,
or

a

a

sight should never be lost
point that that stability is
dependent on the free operation
of the

of

the

forces

making for stabil¬
gold holdings of
mankind operate freely to regu¬
late the price level, it is obvious¬
ly undesirable that the value of a
given quantity of gold—the meas¬
ity.

ure

While

the

in which values

are expressed
changed. But when,
over a lengthy period, the control
which gold can exercise over the
price-level of commodities has
been abolished', it does not require
much intelligence to see that the
terms of the equation should be

—should

the

be

Continued

on

our

main objective.

Particularly must
beware of the imp of discord

we

called

tions

"Credit"

because the func¬

This announcement is

a

matter

of

credit, though very im¬
portant, are not basic functions
of money but a derivative from

of record only and is neither an offer to sell, nor a solicitation of
The offering is made only by the Offering Circular.

an

offer to buy,

any

of these Securities.

these functions.
The
to

a

in

step

portant
mankind
to

from

advance

barter

pure

money-economy

was

an

the. progress

The Baltimore and Ohio Railroad Company

im¬
of

civilization

towards

or,

Walter Bagehot, in the
man from being
originally a barbarian came to be
quote

Under

Scotsman.

a

First Consolidated

by which

process

gives something that he has

man

for

own use.

Persons

something that he requires for

his

In

introduces

he
the

a

money-economy

third

a

into

factor

This third factor is

exchange.

something that he can always
change for something that he
quires.
vast

this

In

Once

this

it

be

can

finitum.

foundation
and

is

the

lays

ultimate

world

within

brings

pro¬

man's

reach, enjoyments which he could
otherwise

In its
can

in

have.

embryonic form anything

serve

as

medium

a

of

It is significant that

change.

ex¬

even

in which a pure
monetary
economy
has
broken
down because we are trying to
run
a
money-economy
without
monev, a great variety of useful
our

own

pressed into
of

temporarily

use

as

been

to serve as media

The use of ciga¬
during the clos¬

exchange.

rettes

purchase

new

First Consolidated Mortgage Bonds of The Baltimore and

Ohio

after October 3, 1955 in accordance with the terms of the
Offering Circular dated August 30, 1955 and who wish to tender Refundable Bonds (of the issues listed

(the "Company")

on

or

below) in payment therefor, as provided in said Offering Circular, may still do so provided that they
deposit said Refundable Bonds with The Hanover Bank, Depositary, 70 Broadway, New York 15, N. Y.,
later than the close of business October 14,

not

deposit

may

solidated

1955. The prescribed form of Transmittal Letter for such

be obtained from the Company, the Depositary

or any

of the Underwriters of the First Con¬

Mortgage Bonds.

Holders of the Refundable Bonds of the issues listed below who have already agreed to purchase new
Mortgage Bonds in accordance with the terms of the Offering Circular dated August
30, 1955 and who wish to tender Refundable Bonds in payment therefor, as provided in said Offering
Circular, must deposit such Refundable Bonds accompanied by the prescribed form of Transmittal Letter
with The Hanover Bank, Depositary, 70 Broadway, New York 15, N. Y., not later than the close of busi¬

t

First Consolidated

October

ness

holders in

14, 1955. The form of Transmittal Letter and notice to deposit

cases

where the

names

are

known to the

age,

has

articles

who wish to

Rail-road Company

ad in¬

repeated

for

re¬

process

therefore

It

ex¬

he saves a
which can

further

to

duction.

trade

time,

devoted

be

started

way

of

amount

then

not

Mortgage Bonds

barter

pure

currency

ing stages and immediately after
end of the war in Europe is
The
process
has,
however, gone much further. So,
for example, Esso Export Corpo¬
the

are

being mailed to such

undersigned, and copies of the Transmittal Letter

are

being made available through the Company, the Depositary and the Underwriters.

Holders of the Refundable Bonds of the issues listed below who have

accepted the Company's Offer of

Exchange described in the Offering Circular dated August 30, 1955 for First Consolidated Mortgage Bonds
are

being mailed (by the Exchange Depositary) a form of Transmittal Letter and notice that such Refund¬
deposited not later than the close of business October 14, 1955 with The Hanovei;

able Bonds must be

Bank, Exchange Depositary, 70 Broadway, New York 15, N. Y.

'

well-known.

ration

its

has

oil

crude

rencies

taken

such

fact

unlikely

cur¬

converts the transaction

into

First

is that instead of getting one good
medium of exchange, they had to
and

into

enter
were

to

turn

inefficient

several

they

fields

ones

which

in

their

crude

oil

into

Toledo-Cincinnati

Division

First

Lien

and

First

Division

Mortgage

5%

Bonds, Series A, due 1980

Pittsburgh, Lake Erie and West Virginia Sys¬
tem Refunding Mortgage 4% Bonds, Series
A, due 1980

due 1985

Refunding and General Mortgage 5% Bonds,
Series G, due 1995
Refunding and General Mortgage 5% Bonds,
Series K, due 2000

Refunding and General Mortgage 5% Bonds,
Series M, due 1996

the

they paid their
wages, stores, dividends, etc. Good
money makes this wasteful proce¬
dure unnecessary.

I As happens

with all

new

mankind learned
of

more

money

efficient

as

about
a

tool

production,




...

Refundable Bonds not tendered in payment

the

for Bonds

or

exchanged

are

being called for redemption

on

respective next permitted call dates shown in the Offering Circular. No provision is being made for

prepayment in connection

with such redemption. 1

dis¬

coveries, however, once Edison's
1 % of inspiration has been infused
into the mass, the 99% perspira¬
tion takes over and improvement
becomes a normal process.
The
articles originally used as money
were probably ordinary everyday
articles of utility like domestic
animals, arrowheads and hoes. As

more,

4% Bonds, Series A, due 1975

not specialists, in order

dollars with which

function

the Refundable Bonds of The Baltimore and Ohio Railroad Company referred to above:

Mortgage 5% Bonds, Series B, due 1975

Southwestern

monetary rather than a barter
transaction.
The only difference

in

are

Refunding Mortgage 4% Bonds, Series D,

a

deal

following

First Mortgage

and

beer

biscuits, rags
and
rabbits, pickles and piping,
steel and salami. The Corporation
did not want these things and that
as

The

payment for

as

the

of

he

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 Stale.

Glore, Forgan & Co.
October 3, 1955.

Halsey, Stuart & Co. Inc.

Winston

Franklin Roosevelt.

But

constructions without

necessity for such periodical
re-negotiation as is necessitated
by changes in the meaning of the

Isaac

Churchill

negotiate

f

recognizability, universal

that

wide scale.

many

accepting

that many people hold
the price of gold,
fixed,
should
never
be

view

once

has

un¬

changeable price for gold. Hence

divisibility,

standable

great

of

the

values

superiority of the

durability,

fixed

as

a

and

vention by mankind of

ers

be

moving
the

as

sonably

memorized from your

for the

the

ever,

effort

ably stable medium of exchange
created the possibility of the
division of labor, with all its at¬
tendant advantages, on a worlds

the

values and value

a

served

reasons

were

a

subjective concept. To meas¬
one
moving object with an¬
other
moving
object
requires
nonexistent legerdemain. If, how¬

of the fore¬

suffix

that

ure

trading countries.

human

changed, or if not never, at least
like the Captain of the "Pinafore's"
mal de mer—"hardly ever."
They
regard the price once fixed as
having something of a decalogual
moral character, whether the fix¬
ing has behind it the authority of

perfect
created: for

not

is

If, however,

must

Economists

fact

cigarettes went up in smoke too
easily. And so in course of time

textbooks to signalize the various

want to get back
to the terms of our equation, we

could

money

the precious metals took the lead

matter for consideration by itself.
we

the

money measures

many

bad.

some

of

aware

became too plentiful. Tobacco and

Century gold

in

"sound."

word

readily di¬
perished.
Cowries

justice, it persevered in
of
creating
a
sound
with the accent on the

task

money,

Pre¬

not

were

and in the 19th

their

served

heavy to transport.

passed silver in

introduced

have

too

cious stones

ob¬

tem of barter. The embellishments
Which

ient

sys¬

simple

a

they had to be fed and
habit of dying at inconven¬
times.
Hoes rusted.
Copper

a

of

this field.

happiness and of individual
liberty involved in a change of

remem¬

is

fit into

not

Remember that there is
deal

of human resourcefulness in
It is therefore under¬

apex

man

mankind

as

did

comparatively recent intro¬
moneyless moneyeconomy and the time when the
in

Be

bered that sound money is funda¬
mental to efficient production and

duction of this

enabled

Cannot

timum effect with the expenditure
of the minimum of force. Animals

the

money

Money
Created

op¬

perience of history—the price of
gold can be changed.

11

Alex. Brown & Sons

page

46

.-•v.

12

The Commercial and Financial Chronicle

(1400)

minds of

Confidence, Incentive, Initiative

might

a

of confidence, incentive, and initiative
dimension" of economics, prominent steel execu¬

Stressing the need
as

"fourth

a

in

nation's

financial

clamor for

and the uncontrollable

business.

vention in

Urges

citizen work to keep

every

factories, and the shipyards.
before we entered World
War II, our armored forces had
conflict

ended,

almost

is

there

that

understand

of

Pearl

war

tionary

'

armories

useful

a

has

The

do

new

bombers.

with

appro-

priate

had

won

sound

effeets, "there
you
are."
A

ity."

l'riend of mine

rfuity

that

claims

again.

A young manufacturer and

he

this

type

that

by

back

dialing

inventor
was

the

on

the.

by

rescue

name,

of

awarded a conof an idea,

strength

the

time

a

idea which

did, I would set the dial lor
1798. It would carry us

involved the design-

0£ production.

]Jshed

ac

e"-°UI^natl0rl

He set to work and

imp0ssible.

Of

was

he

th

unhampered

by

J ^
inexpe ienced and g0Vernment bureaus. Through a
fiv nf3 y defenseless. The sup- process we now know as the interHwfnHHnt
^
dwindling. France had provided changeability of parts, Eli Whitt

h

80,000 muskets to
nental

Army,

almost

fact,

to

the

war was

h

the

arm

but

fulfilled

breaking point.

In

imminent.

And so, on May 4 of
1798, the
Congress of the United States,
after long and bitter
debate, voted
the

I

of

sum

chase

of

suppose

the

equal

$800,000 >for the

cannon

this

and

Zenith

Conti-

relations

our

his

contract

toournationand

Jhe Tnterdfpendence
exists

'its

de-

I™°Sr

between

which

military

now

strength

arms.' marching armies. The materials of
just about ™ar were once a relatively small

small

would

down-payment

on

one

today's smaller nuclear weapons, but it was a large sum of

Jwt of articles supplied partly from
the personal effects of those who

enllsted m the ranks. Today they
are a collection of complex, intri°ate, sensitive and accurate weapmindc
nf
rnnflr0cCmfln minds
of
many
Congressmen- ons and equipment that tax the
industrial ingenuity of even our
an
attitude which I imagine is
own
highly skilled nation,
not unfamiliar to
many military
The scientist and the engineer

money
a

in those days.

foolhardy

It

was

appropriation

in

also

the

manv

men

today.

—77—
Annual

..

Sept. 28,

have

1

......

"Dinner

Industrial

of

"V

Association,

N^ionoi
New

Scc,!n!y

York

City,

1955.

the

become

tia, of the

members, in absen-

groups

responsible for

°ur military strategy and our natlOnal defense.
flict

Centuries Of

the battlefield and

on

COnin the

United

States.

Western

the

-

.

-

Those

almost

us

by

with

concerned

policies,

force,

which,

pause

to

ready

poses

have

to

or

Yet this

has

questions
of vital

are

ana-,

given

tyrants, al¬
and prob¬
importance

mainly

representative

the

of

of

edness

world
and

period

temporary

peopie.

war

of

The' nhilosonhies
the

upon

efficiency and high rates of
ductivity.

that

war

exceotional

an

is

and

and goes

comes

with continuing regularity. Peace
has become
the
parade ground
upon

which

world

display their military might

the

nations

the

of

science amplifies the

industrial
the

scends

atom

potential

implications

bomb,

the

tran¬
the

of

hydrogen

bomb,

more
our

feared weapons of

fact

a

But

own.

that

it

is

there

of thrift and investment and free¬
dom of opportunity. Such factors

build

of

sion,'

developed

weapon

which

a

devices

The

J.

F.

C.

ago:

tion;

said

"Because

one

in

end."

a

Just

too

pow¬

profitable politi¬
as

the

crossbow

so

in

face

New York




•

Pittsburgh
Scranton

•
•

Allentown

Atlantic City

a

nation's defenses

could be based upon modern
tations of the Great Wall of
one

to

political

decade

we

have

face

with

and

economic

the

adap¬
China,
come

military,
ramifica¬

tions of atomic warfare.
•

Lancaster

The greatly shortened time fac¬
tor in scientific and
technological
change has affected not only mili¬

that

after

the

the wages

plan¬

our

elimination

of

the

of tomorrow

be spent to meet any selfish
demands of the moment. We must
can

nation

a

unlimited

with

continually

us

forward.

Among our principal considera¬
tions, of course, must be the steady
advancement
will.

To my

potentialities
into

the

tance

of

technological

automation, if you
way of thinking, the

processes—or

of

today

fall

automation

sphere

same

of impor¬
mechanical

the

as

ideas of Eli

Whitney in the postRevolutionary period. And future
development in this area will have
an even greater impact
upon our
ability to meet the demands of de¬

If

land, is to stimu-;
these factors.

of

security,

as

national

the most

as

tecting its inherent characteristics

investment, competition,

ice and profit.

In

well

as

serv¬

after area,

area

moral

as

strength
by reluctance to
for what was known to

has been vitiated

be

up

right.

How many citizens

they have not at
sacrificed

can

time

one

dustry and

principles

or

in

Taxation,
longer

a

of

as one

and

•

example, is

of

no

the
Federal

It has become

social

a

po¬

instrument

and

such is draining off the finan¬
cial resources of this nation. Dur¬
as

ing this generation, an estimated
$1,000 billion have been siphoned
of

out

the

national

economy

and

spent

by

States, and as yet no one
a yardstick to de¬

of

governments

the

has developed
termine

how

much

of

this

times

the

times of crisis.
well in

have

years we

bad

in

seen

political,

fields

the

past

tremens."

of

down

and

with

a

"depression

an

uncontrollable

and

more

intervention

more

the

in

industry. In
producing

were

35

40%

to

produced
the ;

all

of

in .the world,

Federal, Trade

Commission testified that the steel

industry

over-expanded.

was

year

or

and

later,

other

so

we

were

government

A

at war

agencies

urging that steel capacity be
increased.
!
were

Two

dustry
ten

later, after the in¬
added approximately

years

had

million

tons to its

annual

ca¬

pacity, the War Production Board
recommended

that

the

steel

pansion program be cut
year

or

later, this

so

forecast

an

ex¬

back. ,A

Board
shortage.
Interior Department
same

acute steel

In 1948, an
spokesman warned that the gov¬
ernment might interfere if steel

industry

expansion
programs
couldn't keep up with the demand
for steel;

then, shortly thereafter,
Anti-Monopoly Investigating

guage

warned

that

S.1

U.

dire

lan¬

was

in

"too

Steel

Today, with a national steel
capacity of almost 126 million
tons

and with American

industry

expanding in almost every direc¬
tion, the same pretense of seeking
to
prevent monopolies is being
used to create public distrust of
our
nation's industrial potential.
is

Legislation
and

considered

being

promoted

in

quarters

some

which would stifle

even now

com¬

impair de¬
the
years

petition and perhaps
fense
production
in
ahead.

|

gov¬

Consumer

Day-to-Day
Needs

ten

One of the symptoms of

for.

ernment

economic

the

we

like

steel

officials

citizens prom¬

come

of

case

of in¬

in'times

We know this only

the steel

when

Growing
in

economy

was

spent prudently.
Three

our

big."

meeting

local, State and

Government.
litical

Resources

means

War

peace,
is the only. means of
acquiring the industrial capdcities
which are so vitally necessary in

Committee

Taxation Is Draining Off Nation's

costs

for

of

the

Financial

Expansion

Preparation

.

potent ultimate

force in the world, then a better
job will have to be done in pro¬

stand

Industrial

Best

The continued expansion

American industry is to con¬

tinue

of

Is

1940,

our

They must be caused.

pen.

Peacetime

of

progress,
the right things will not just hap¬

There
we

face

is
a

every

that

indication

future wherein prepara¬

tion for defense will be

constantly

by the growing dayneeds of our people. All

challenged
to-day
of

you

when

nor¬

I

aware,

are

two

Continued

economic

that

know,

businessmen

more

or

on

page

processes
of
the
It is unfortunate, of course,
that we cannot inoculate such in¬

52

land.

dividuals

with

the

the

few

a

facts—facts such

to

cal

this

matters

of

military instrument

idea

too

preserve

In matters of national

Moscow,
London or New
York, what sci¬
ence has
accomplished is to render

"

of

late- and

this condition is

demolish

and

something

clamor

Fuller,

it will call for vision in

ning

dimen¬

lifeblood

of

through

or

soldier-author,

can

erful to attain

the

"fourth

challenge to your organiza¬
to industry and
to
every

citizen

mal

General

year

are

or

itself.

British

supply in->:
the intangibles

economy.

allied

neutralized, sooner
through the perfection

capable

and

so-called

and

inent

never

not

later,

the belief that

9

They

this

war

replaced the spear, and was made
obsolete, in turn, by gunpowder,
and just as the airplane
destroyed

PHILADELPHIA

confidence

itiative.

his¬

an

has

time

production

our
ability
accomplish whatever may be
required in the years ahead. But

to

fense and civilian needs alike.

only through the incentives
and advantages offered
by a free
economy—incentives in terms of
living conditions, the advantages

entire

array of nuclear de¬
No other nation ever devel¬

in

time, I do not doubt

Sound economic progress is pos¬

United

rattle of sabres.

Our

of

pro¬

sible

tra¬

aspect in the lives of
Yet the threat of cold

modern

pro¬

public opinion.

becoming hot

and

a

standards

this

based

be

high

for

pre¬

assumption

must

totalitarian

any

maintain

in

ditional
and

that

can

do

I

prepar¬

1955.

projectile

INCORPORATED

believe

not

tracted

immeasur-;

an

Personally,

of

are

the

STROUD & COMPANY

advantage.

policies of this nation toward

about

Philadelphia Banks

nation has

our

dimension"

degree

kind

warfare

our

asked

"fourth

system

the

Send for comparison
of 11 largest

the

neeessarv

what
are

of

have

econom¬

the face of what they thought was

what

and

paredness

Major

BANK STOCKS

of

another

you

called

tive which national economic pol¬
icies make possible. It is in this

say

of

employees achieve the impos¬

sible

enterprise to carry

factor

a

applies $Kfhe degree
confidence, incentive arTd initia¬

that

many

is

which

of supply of the military
establishment of the United States,
sources

Thursday, October 6, 1955

.

faith in the ability of free private

phraseology, for in¬

there

economic

suspect since your association

is

Dimension in

"the fourth dimension of
ics"

had

not

American.

every
I

far,

so

swaggering

lems that

fear

PHILADELPHIA

of national

lyze its full significance.

more

Maintained in all

v-"'-"'v.:"1

yet to apprehend

as

was
•

indus¬

Century change

has taken

national

time

been

r

the

military science, with the philoso¬
phies of nations and with our own

torical

,

of

this

area

by

that is weakened by

In economic

stance,

hangs the future of

important

than

■-

potent

potential

civilization,

oped

C

world'today

This Twentieth

in

vices.

Trading Markets

most

the

Upon

trial potential

the

Active

t

S.

the

force in

industrial

yourselves

and *"*^1 capacity.

that

apparent

is

cave

Much has occurred since those
fatafu! days- The, march of science
'b(ir-5 ?nd
Industry, ,has altered our

of

it

security

of mechanical methods

U.

and the years since has made

surprise.

use

the

Potential

The experience of these critical
years

would

ing and

the year

f

of

manu-

facture ten thousand of the needed

f

W

Vast Industrial

believed

he

ma-

t

;

make it possible for him to

an

10

process
I

our

weapons.

Well, I do not have
if

to

came

Whitney

tract

takes

him
or
15 years, just
late-late movie.

Eli

set

vision and Yankee inge-

was

proven

—a

television
Clifford F. Hood

of

in

teriel.
The

sustained

its

.

become

able

business

being criticized
they had increased

which,

costly

and

Economics

that

The

be

The Fourth

jet fighters to huge
were

the follow¬
ing five years, produced an everinrr^asing avalanche of war ma¬

ultimate

.

it

has

machine

a

industries

cannot

economy

area

their productive capacities through
sound management, were the same

war

a

for independence with few assets
other than an intangible substance known as "Yankee ingenu-

and

year

they

before,

so

econ¬

dreams and schemes.

planes, from revolu¬

in 1940 because

crisis of 1798, however,
men of vision.
A decade or

were

certain

a

a

with meet-

concerned

men

than

the

ing

the dial

is set
for

to

only

produced

thousand.

All

around.
one

had

Air

our

more

industry had turned out

300,0^,

of 40,000 muskets, yet it was well
science fiction known as a "time
known
that in four tyears the
machine." It serves such authors "Springfield
and Harpers Feiry
as

little

At the

thousand combat planes. Before
the
surrender
of
the
Japanese,

popular device among writers of

device to have

Harbor,

numbered

American

an

powerful

upon

weapons

pro¬

a

our

resilient

a

To many observers, it is
becoming obvious that a defense

tanks, ar¬
self-propelled

vehicles,

time

The bill called lor the purchase

a

the framework of

Before

had

we

and other vehicles.

Force

bul¬

as a

industrial potential within

our

200,000

guns,

firms which
I

line, and

A year

atomic

alone stands
aggressor."

great creative system intact, "for it
wark against a would-be

en

based

the assembly

on

mored

v

government inter¬

more

We have dis¬

It has emphasized

omy.

duced

Says taxation is draining off
Scores "depression tremens,"

resources.

potential.

its

tary planning.

the need to preserve and strength¬

covered that while battles may be
won or lost in the field, wars are

that

protecting its inherent characteristics of investment, com¬

petition, service, and profit.

greater than

no

only 464 outmoded tanks.

continue as the most potent ultimate
the world, American industry must do a better job

points out, to

force in

military

in the

President, U. S. SteehCorporation

tive

be

can

nation's

a

decided

CLIFFORD F. HOOD*

By

that

industrial

—Fourth Dimension of Economics

have proved beyond

men

question

.

present

as

distilled

Administration

in

ability of American industry
raise

economic

Establised

levels

to

H. Hentz & Co.
Members

new

the

without

and with

pump

extra

any

push

on

to

increase

cities cannot be

cent
be

productive

government.

produced.

plied

by

It

a

be

must
multi¬

competitive

enterprise,
and then it must be put to work
and multiplied once again..
As one who has spent.almost 40
years

Exchange,

Board

and

Inc.

Trade

of

Cotton Exchange

other

exchanges

from

benefi¬

Capital
must

Chicago

New Orleans

capa¬

transferred

pocket to another by

one

Exchange

Commodity

industries

our

Exchange

Cotton

York

New

Exchange

Stock

American

the handle.

Capital to expand
and

priming of
only a little

Stock

York

New

heights

1858

the confidence

observing American indus¬

try, its owners, its managers and

N.

Cotton

Y.

NEW
Chicago

Exchange Bldg.

YORK
•

Detroit

Beach

Miami

Hollywood,

Fla.

Geneva,

•

•

4,
•

N. Y.
Pittsburgh

Coral

Beverly

Gables

Hills,

Switzerland

Amesterdam

Holland

0aL

Volume

Number 5470

182

.

The Commercial and Financial Chronicle

.

.

(1401)

You

The New Yorh Power

tourists

full

Harriman, in calling attention to the "great new resource
a-building in the North Country," states his reasons for approv¬
ing the New York Power Authority contract with the Aluminum
the

St.

the

stresses

Lawrence Seaway

New York State has
resource

a-building

Country.
united

And

in

the

the

great new

a

state

State
most

that

on

$30

not

was

the

corn-

But

espe-

payroll.

million

going

chasing
State.

and

—

families and

munities that depend in good part

is

the

that

their

ers,

in the North

whole

intention

output, and

power

for tourist travel in the region.

attractions

new

industrial developments

and its

the

action

for

to

I

our

party

to

our

be

a

out

company

of

will encourage

that

the

We have

'

owned

history—but

ated for

North

50 years

over

when

undated

and

the

oper-

dam

Country

built.

The

are

Power

Authority will replace this

in-

power, as

dividualistic.

But

sources

twentv3 "loca?
chambers

of

commerce

million in conversion and

j

w

Slttmgpurpose.
d0wn
common

0

little

a

forgotten.

are

unexpected

to

see

ro-

blooming
between
the
Seaway Development Corporation
the

and

railroads.
are

the

And

Yet

the

on

Power

Authority and
companies aren't
given to holding hands.
But they all are in there pitching
together now. They all want to
build up the North Country.
private

However, at my request,
^be original term for all the
Power was reduced to 38 years,
with Provision for the Power
Authority to review the situation
in regard .to half the power at
tbe end
^5 years,

team.

power

exactly

Probably the moral of the tale
is

this.

If

all

of

approach at the door,
identify

can

us

leaves4 his

everyone

doctrinaire

the

areas

where there is

a

terests among

diverse groups and

proceed with
.

.

T,

It

is

for

power

,.

.

....

A

realistic spirit that;

North Country
industrial

the

in

encourage

deyelopment. a fair share of St.
I have said con-

sistently that

Lawrenee power

North

the

-r,

The

should

Country.

.*

a

Authority

interests

rural

appropriate

is

that

municipal

well

as

rural

and

domestic

of

It

users.

too,

plants

power

as

electrification

co-

operatives shall have preference.
Yet

it

also

is

that

true

the

law

have industrial development here to supplement our agriculture in order to
balance the economy and use of
recognizes

This will enable us to take
of
our
natural resources, including the opportunities the Seaway is opening up,
and make sound progress in the
power.

advantage

interest of all.

'

'

•.

■

.

,

£

.

We have not had

industrial

of

„

,

full share

our

Country, and now we have
the opportunity to make up for
lost time. It is an opportunity that
That

was

one

the

of

reasons

I

glad to be able to approve a
was worked out be-

was

contract that

the

tween

Authority

Power

the Aluminum Company

and

of Amei-

ica—although I must confess I did
insist

substantial

some

upon

changes in it. Alcoa is the biggest

employer
As

in

the

Country,

North

know, about 6,000 people

you

.

is about $30 million.

responsibility

My

jjeen

was

to

*An

meeting
N.

Y.,

■

.

contract
.

be

to

necessarv

,

*

the

the
with

Ajr

Sept. 27,

porce

,.

the

was

are

we

of

areas

is

true

jobs and
that

today

industries and

more

to

a

rate.

bitter

months of this year, we

informed

dustry
and

We

build

125

of

are

During

year.

the

years
1942-1944
he

with

was

State.

These

figures

n$t

the

War¬

nomic

fare, serving
in Washington
D.

Schulte

dle East. Dur¬

ing the period
he

been

ac¬

of

years

Sterne, Agee & Leach
To Be NYSE Members

in

that

fact

the

when

I

Secretary

was

had

I

eight

BIRMINGHAM,

an

oppor¬

,

said when

I

in

expectancy
is

tion.

But

great

a

work

began, there

air

the

of

feeling
of

most

sense

common

I

of

tonight

anticipa¬

all, there is

comradeship

purpose.

Building,

and with

the

grace

in

Oct. 13 will acquire

on

membership
Stock
H.

.

in

the

Exchange.

C.

New

we

shall realize

are

Ed¬

Leach, Mortimer A. Co¬

hen, Alonzo H. Lee and Henry S.
Lynn

who

will

hold

the

membership.

Exchange

any

an

offer to

sell,

Lyman

A.

of God,

Thomson

Gould,

&

/

partner

McKinnon

away on

Sept. 26.

'*

of these securities. The offering is

t.

offer to buy,
made only by the Prospectus.
nor

a

solicitation of

an

New Issue

341,380 Shares

Household Finance Corporation

.

base.

Common Stock
(Without Par Value, Stated Value $9.00 per

Share)

\

offering to holders of its Common Stock ihe right to subscribe for 341,380
of Common Stock ai Ihe rate of one share for each 20 shares held of record at
the close of business on September 30, 1955. The Subscription Offer will expire at 3:30 P.M.,
Central Daylight Saving Time, 4:30 P.M. Eastern Daylight Saving Time, on October 17, 1955.
The Company is

shares

o-

n

Subscription Price $24 Per Share (U.S.
The Underwriters, including

Funds)

the undersigned, have agreed to purchase from

such of the shares of Common Stock as are not
the Subscription Offer.

the Company

pursuant to

subscribed for

«

become,
I
thoroughly
wiu

the

most

river

harnessed

in

This

small

160,000

kilo-

States.

united
rtver

told,

am

generate

Prior

to

them

the Subscription Offer, the several Underwriters may
Stock, including stock acquired or to be acquired by

the expiration of

offer and sell Common

through the exercise of Rights, at a price or

within the

limij^CrPthe formula set forth

on

the

prices to be determined
of the Prospectus.

cover page

watts

'
Copies of the Prospectus are

velopment represent a great new
resource
But they in themselves
this

transform

no^

dealers

initiative and hard

work and the

0f natural resources, including

use

minerals,

which

have

not

been

fully utilized,
And remember that the
and

0f

great
.

the

tential that

to-

well-planned

will constitute

tourist

country.
,

Seaway

development,

power

our

such other

new

accomplished, but it will take

be

obtainable from only such of the undersigned and
lawfully offer these securities in this state.

may

new

seacoast of New
York State, into an industrial and
commerciai complex.
Mu^h ran
fron^jer> u,is

as

One

po-

quickly realizable.

William Blair & Company

Goldman, Sachs & Co.
Paine, Webber, Jackson & Curtis

Blyth & Co., Inc. The First Boston Corporation
Kidder, Peabody & Co.
Smith, Barney & Co.

° Stone & Webster Securities Corporation
A. E. Ames & Co.
Limited

attractions

That is

Corporation

White, Weld & Co.

one

...

is

Lee Higginson

October 3, 1955

firm's

:

Lyman A. Gould

a

7

neither

York

a

dreams.

our

,

Partners

Rucker Agee,

Sterne,

hard

With

-

Ala. —Sterne,

Agee & Leach, First National Bank

mund

is

six

is

of

President

was

Retail Stores.

M.

—there

this

announcement

Mid¬

the

and
Arthur

St.

conflicting

and

'

This

the

Board of Eco¬

For myself, I take sat¬

Commerce,

As

plants

for

1945 until this

great projects.

six

in

major additions

from

Corp.

tunity to testify in favor of these

by in¬

new

of

have been in¬

has

struggle

ago

years

have been

of plans adopted

to

152

first

This

isfaction

greater va¬

the

In

development

opinions.

riety of industries working at a
profit in New York State than in
any
other state in the Union.
And
we
are
expanding
at
a
healthy

Distillers

ford

1940-1942

complished except after

industry.
there

the

specting.

politics.
finding

interest.

mutual

build

to

want

in

may—

dedicated

President

of Park & Til-

Country

Lawrence that you

to

we

in

Chairman

and

toward

great dream—with the vast work

differ

ideas;

our

do—differ

was

first

terprise contributing
*
de~
velopment of the North Country,
W e n Niagara-Mohawk cornp*eteiL lts c°nst^uctl0n program,
tbe
-945
Hiver over which
£ou wl11 bTe
°m°£°W wil

Tri-County Chambers of
editors, Potsdam,




of
we

North

Schulte

tonight D. A. Schulte, Inc. and from 1929
we
see
unfolding before us the to 1940 he was Vice-President of
beginning of the realization of a both Huyler's, Inc. and Schulte

are

may

the

In

signed—speed bein order not to de-

/a

®f

1955.

fact

0n
7
+que f /7ufr
whidi flows so close to us tonight,
another example of private en-

the

visiting

some

in

us,

role

achievements.

these

con¬

its

.firm.

Mr.

labor, commerce,
communities and

in

Commerce

of Ar¬

the

with

State

negotiating for the sale of power
to our neighboring State of Vermont
the
municipal
plant
at
Plattsburgh and the Plattsburgh

parks,

of

in

It

State.,. We

our

speeded-up construction
Authority is now

public

Harriman at

build

of

Shulte

D.

we

Dickinson, our new Commis¬
of Commerce, who is with
us
tonight, is supplying dynamic
impetus to the
Department
of

bond

York

all

State,

thur

association

the

announced

Ed

you

New

Business

our

Brothers, 1 William St.,
City, members of the
York Stock Exchange, have
York

sioner

you

;schedule_the

protect those 6,000 workby Gov.

here in

we

that

partic-

,,

Alcoa

with

Commerce

-

short of aluminum in re-

s0

gether

address

states

months.

cent

Governor

as

that

one

Lehman

New

ui^riy srriaii industries—that have

work there. And the annual payroll

New York

neighboring

The Seaway and the P°wer de"

be iosi.
ce lost

nor
not

aiuminum

of

supply

industries in

and

the

growth here in

North

musi
must

lfor

the

must

we

,

/otect

Although
ap-

tour

of

the

locate in the North Counaddition, it will help to

num to
t
■; In

±.

Act

State.

in

passed

.

....

propriately provides that primary
consideration shall be given to
the

caHn§ facilities when the^ stockp
aluminum pig for the
Federal Government is cornpleted. This in itself will mean
more jobs. What is more, it W1"
create further opportunity to attract industrial users of_ alumi-

\

ii

.

Power

remain in

your

me

stressing the necessity

will

that

..

...

this

in

I have been

community of inworking program,

a

"Flirthermore, Alcoa has assured
they will increase their, fabri-

-

a

intend to make our
continued progress more dynamic.

editors
will be
thing, and that

when

working: together,

But

years-

here

up

same

expan-

To warrant the new investment,
the P°wer had to be available to
Alcoa f°r a reasonable period of

It's

a

is

our

mance

they both

the

available.

are

that

convinced

sion of its operations,

„„

together lor a
Local rivalries

hope
complete

basis.

temporary

a

on

this

partnership of
industry, local

projects

more

when

and

funds

I

Now' with the assurance of a
power SUPP1^ under the contract,
Alc0a PlanS to invest SOme $25

narnman

wmw

issue

the

well as power the comobtaining
from
other

is

pany

tonight

with

contract

many

design stag© to be

if

structed

is

people
p r e t t-y

in the

are

will be in-

new

that

New

this year

let contracts

your
visit this afternoon
the power generating facil-

Alcoa

fact

the

By the first of next year, I ex¬

for

members of the press know

by

With Lehman Brothers

pect

push forward on
State program, too, including
urban arterial
highways.

that

that

resource.

W. Avereii

in

must

we

ities

vCoun- from

Arthur D. Schulte Now

1953.

healthy climate for business exists

people

from

North

fig¬

1954 or the

illustrate

to

not

try—will gain

^\^You

t h

year

year

take

over
$5 million in highway
projects in St. Lawrence County
—making this the biggest year ©f
road construction in the County's

cially

comparable

the full

I say this not to
credit for the expansion but

full

calls

exceed

for

ures

Develop¬
to come our way.
The highways ment Corporation will be set up.
leading into the North Country This privately-financed and pri¬
are now inadequate—we all know
vately-controlled institution will
that. But the State can only move provide a new source of funds for
forward rapidly if the voters ap¬ small business, and will encour¬
prove the $750 million bond is¬ age the creation of local develop¬
sue
that will be on the ballot in ment corporations like the one in
November. Of course, we need an Jefferson
County
and
the one
expanded Federal road program. being started in Ogdensburg.
By

Gcv.

from

of

add, realizing the
of tourist attrac¬

I

may

also

roads

new

months

but

are

thousands

only locally but on the part of the
State
to
develop
the
kind
of

Governor of New York

Foresees

tonight
of

come.

potential

tion

HON. AVERELL HARRIMAN*

Company of America.

to

And,

Authority and the ALCOA
By

editors here
forerunners

the

13

*

14

The Commercial and Financial Chronicle

(1402)

is less readily available
(comparatively tighter). The Fed¬

money

"Icing the Housing Boom"
Mortgage

Inc.,

New York

Savings and Loan Associa¬
tions, which were substantial con¬

and

will

Home

personal savings. Notes that despite the fact that

will

During
Banks

the

its

fell

INVESTMENT

12,

lead

to

rate

of

Cleveland

District

this rate

early
August,

when

it

sought

from

and

was

granted

mark.

for

insatiable

The

per¬

mission by the
Federal Re-

ties

mortgage money is

outstrip

to

mutual

and

funds.

lowing table points

I serve Bank to

The

fol¬

this trend:

up

jump the rate
from
then

1%%

Personal

being

charged nation-widb.
the

on

This

istic attitude in

an

than

pressures

50%

a

increase

the

Reserve

period of active
market.

Bank

as

Coupled

with

the

down
payment privileges
Government
Guaranteed

try,

particularly,

market

of unusual

surge

tions.

On

enjoyed

healthy

pace

of

almost

annually.

tions

and

sales

10,000,000

built

in

the

were

not

second

units

lem.

since

required

against

gear

York

nounced

has

increase

an

basis

effective

additional

bonus

so

of

a

an¬

divi¬

its

per annum

1/4%

that

An

for each

savings is

at

the end

additional

an

of

of

1%

be earned.

can

being written,
unanticipated factor

entirely
entered

the

onto

the

—

financial

stock

severe

Presidents
will

market

occasioned bv

was

illness.

this

253.9

18.8

_

Administration,

payments
on

down

no

of

VA

2%

loans,

payments;

result

of

higher

interest

Samuel M.

what

To

development call

The Officers

a
reappraisal of next year's
spending plans by corporations

and

what

demand

have

will

effect

from

down

will

of

undoubtedly

the

credit

will

be

for

2nd

strain

that

so

readily

more

to

a

decline
annual

an

1.2

of

of

Treasurer—John C.

funds

starts

to

be

cycle and would tend to

York Hanseatic Corporation.

con¬

Other Governors are Jack Christian, Janney & Co., William
Doerr, American Securities Corporation, Robert F. Donovan,
Blyth & Co., Inc., Harry H. Fahrig, Jr., Reynolds & Co., J. Edward
Knob, Drexel & Co., Robert McCook, Hecker & Co., William J.
McCullen, Hendricks & Eastwood, Inc., Thomas F. O'Rourke, Jo¬
seph L. O'Brien Co.. Willard F. Rice, Eastman, Dillon & Co.,

solidate the gains made in the last
decade at a high plateau. In this
observer's opinion,
it would be

H.

"icing the housing boom."

are

as

the

rates

R. B. Smiih Now

Joseph E. Smith, Newburger & Co., Roy C. Thomas, F. P. Ristine
& Co., John F. Weller, Goldman, Sachs & Co., and Edgar A.

u

Christian, Stroud & Company, Incorporated.

With Keith Reed Go.

SECURITY TRADERS ASSOCIATION OF NEW YORK

DALLAS, Tex.—R. Brud Smith
is

The Security Traders Association of New York reports

associated with Keith Reed

now

Carothers, H. M. Byllesby & Company,

Newly elected to the Board of Governors are Herbert E.
Beattie, Jr., H. A. Riecke & Co., Inc., Spencer L. Corson, Elkins,
Morris & Co., Albert Fenstermacher, M. M. Freeman & Co., Inc.,
Harry Green, Merrill Lynch, Pierce, Fenner & Beane, John M.
Hudson, Thayer, Baker & Co., and William R. Radetzky, New

extremely
desirable at this phase of the busi¬
ness

Stroud & Company,

Incorporated.

to

million

1.1

would

Vice-President—James G. Mundy,

available

housing

rate

million

Kennedy, Yarnall, Biddle &

r,

Secretary—Rubin Hardy, The First Boston Corporation.

ease

housing needs.

A

1

Incorporated.

de¬

have

tend

Wallace H. Runyan

follows:

Co.

sources

industrial

as

1st Vice-President—Samuel M.

lessened

a

industrial

Kennedy

are

President—Wallace H. Runyan, Hemphill, Noyes & Co.

the credit structure? Any

on

mand

dollars)

John C. Carothers

Rubin Hardy

James G. Mundy

of

As this article is
an

7y2% over-all, and the term was
shortened from 30 to 25 years. As

end

a

50 months of consistent

months,

just

in

immediately.

bonus

also offered

One

larger Federal
institutions in

area

dend rate to 31/4% on

FHA down payment was increased

been

the

Down

now

forma¬

have

billions

by the inflationary
tendency in housing, trained its
powerful guns of quantitative and
qualitative controls on the prob¬

propor¬

in

New

offered.

Loan

and

slowing

The Washington

1,453,000

Family

nation

the

concerned

with this torrid speculative
spree.

Over

follows with

as

$2.2 billion.

seasonally adjusted
the industry at one time
proceeding at the merry, un¬

starts

rate.

Indicators," Aug. 1955.

disposable income increased
$14 billion as compared with 1954,
personal
savings
have declined

a

dividend

for

Please note that despite the fact

basis,
was

the

that

bull

a

higher

and

stronger

16.6*

Personal Savings

Mort¬

as

the
from

trimmed

beneficial effect and

the private housing indus¬

gages,

the

Savings

267.1*

fin

under

in

new

be

extent

Disposable Income

of

passage

will

sources

15.3*

annual

the following
by the Investment Traders

Philadelphia.

un¬

savings and
existing thrift accounts from other

261.0*

pares

Housing Act, in mid-summer
1954, modifying still further

of

of

reaction, which

quarter of 1954:

that

bubble

is

attract

the

The second quarter of 1955 com¬

time
was
a
powerful factor in
stemming the reactionary tend¬
ency in that interim.

the

to

19.8

in the money
at

rates

18.3

taken

ease

The action

Inducements

250.4

♦Seasonally adjusted

PHILADELPHIA

by the current rulings.

254.8

Source: "Economic

a

will

field

boom

2nd

recessionary low of !%%,■
figure was established by

Federal

Savings

this

the

stage

Qtr.

elected

OF

September,

the

mortgage

17.7

__

were

of

institutions as
table, such

as

inflationary

18.4

—

Governors

29th

de¬

eased somewhat

be

1955—1st Qtr.

1953-54

which

the

226.1

the

over

doubtedly

236.7

1954__

and

Association of

ASSOCIATION

the

on

above

cutbacks

severe

has

1953

existed

elsewhere in the nation. The pres¬
ent uniform 2]/4% rate now
rep¬
resents

savings
the

.1951

industrial activity and greater in¬

flationary

in
in

1952_

of higher

area

1955

Income

Officers

TRADERS

election

curtail

noted

dollars)

of

Period

real¬

more

a

billions

(In

Re¬

the

provided for out
savings deposits.

posits

200

Savings

1951—Second Quarter of

action

part of the Cleveland

Bank reflected

serve

Disposable Personal Income and

Hugo Steiner

8

page

future, this will most
verysharply

near

However,
due
to
slowing down of new thrift

de¬

be¬
the rate of
bank savings which, recently, has
shown
a
moderately
declining
tendency as compared with the
continuing rise in income.
In¬
creased disposable income is be¬
ing channelled more freely into
other
avenues
of
savings, such
as
life insurance, pension funds,
soundly managed corporate equi¬

had

in

well approach the $85

ginning

t ablished

e s

and, by the end of the

may

mand

Bank

which

1950

billion

the

the

8";

Sept.

to

At

subsequently

sources.

since

21A%, fol¬

tho

Thursday, October 6, 1955

mortgage commitments from such

building boom by far in the na¬
tion's history. The mortgage debt
has risen more than $40 billion

raised

and

prior
be

to

commit¬

on

made

current

certainly

year,

rediscount

lowing

line

their

In

would be "icing the housing boom."

Sept.

of

week

into

have

of

personal savings have declined $2.2 billion. Says this will
ease somewhat the "inflationary bubble" and comments that a

the last of the 12 Federal Reserve

issued

Banks

commitments

disposable income increased $14 billion compared with 1954,

decline in housing starts

Loan

ments

money

markets and gives data regarding disposable

mortgage

income and

developments in the

.

NSTA Notes

tributors to the mortgage market,
still
be permitted
to seek

Financing,

City

credit assistance from the Federal

Mr. Steiner discusses the recent

from

.

eral

STEIN Ell

By HUGO

Berkeley-Steiner,

President,

Continued

.

World

War

The
j

II

—

the

that the

&

longest

and,

hence,

Comptroller of the State

lower

of New York

as agent of New York State Thruway Authority

-

will sell at his office at

•

prices,

Albany, New York

Wall

dent.

bond

fall program has been completed.
The Annual Beefsteak Party

Life Building,
as Vice-Presi-

of

Ballroom, Hotel Commodore, Saturday, Nov. 19. Cocktails will be
served from 7 p.m.; dinner at 8:30; tariff $25 per couple including
gratuities. Tables will be set for groups of tern. Checks should be

Co., Inc.,
Fidelity Union

Smith
^

many

has

on

Cocktail party,

Mr.
for

yea r s

served

mailed

as

SECURITY

the Texas IBA.

$50,000,000

retary

of

Dallas

New York State

He is
ber

Principal and interest unconditionally guaranteed
by
the State of New York

the

mem¬

a

of

R. B.

(Brud) Smith

the

fied Accountants.

F. J.

1995, both inclusive.
The Bonds will be
subject to

respective maturities,

as

redemption by the Authority, prior
a

whole

or

in part at any time

-and after October 1,
1963, upon certain terms and

on

conditions, includ¬

ing specified redemptiqn prices.
Principal and semi-annual interest, January 1 and July 1,
payable
at The Chase Manhattan
Bank, New York City.
Copies of the Act and Resolution authorizing the Bonds, Official
Statement, Official Form of Proposal, Notice of Sale, and form of
opinion of Attorney General will be furnished
The

Chase Manhattan

Bank, Fiscal Agent,

11

upon

of the New York Stock
Oct.

New

13

will

Dated: October 5, 1955.




NEW

YORK

as

of Sept. 29, 1955, Are

Follows:

as

'

•

admit

—

Topol (Capt.), Eiger, Nieman, Weissman, Forbes, Klein
Growney (Capt.), Define, Alexander, Montagpe, Weseman

i;

(Capt.), Gavin, Fitzpatrick, Valentine, Greenburg
Kaiser (Capt.), Kulman, Werkmeister, O'Connor, Strauss
Leinhardt (Capt.), Bies, Pollack, TCuehner, Fredericks.-.

Exchange,
James

9

9

Leone

5

A.

Point

Club

209

Point

Jack Barker

Bill

Hoy Meyer

Corrigan, Jr. to partnership. Mr.
Corrigan will acquire a member¬
ship in
the
New
York
Stock

Joe Flanagan

6
4
2

Club

McGovan

210
_____

209

j
'

George Leone

Exchange.

Forms L. Stein Co.

Joins Sandmen Co.
(Special to The

LEVITT, State Comptroller, Albany 1, N. Y.

OF

(Capt.), Brown, Rappa, Seijas, Demaye
14
(Capt.), Jacobs, Barrett, Siegel, Yunker
13
Krisam
(Capt.), Farrell, Clemence, Gronick, Flanagan...
13
Serlen (Capt.), Gold, Krumholz, Wechsler, Gersten—
12
Meyer (Capt.), Corbey, A. Frankel, Swenson, Dawson, Smith__ll
Bradley (Capt.), Cy Murphy, Voccolli, Rogers, Hunter
11
Barker (Capt.), Bernberg, H. Murphy, Whiting, McGovan
11

application to

Broad Street,

York, New York.
ARTHUR

•

Connelly Admits

F. J.
Connelly & Co., 44 Wall
Street, New York City, members
on

ASSOCIATION

Points

.

to their

City.

Manson

-

to

York

Donadio

American Institute of Accountants
and the Texas Society of Certi¬

from 1985

TRADERS

Bowling League Standing

•

amounts

Co., New

&

Secu¬

Association.

(Third Issue)

serially in various

Siegel, c/o Siegel

Grand

the

Security Traders Association of New York Inc. (STANY)

rity Dealers

Thruway Authority
Guaranteed Thruway Bonds

Dated October 1, 1955, and due

Sidney A.

in

Secretary of
He is also Sec¬

State

to

dinner and dance will be held

The Annual Meeting will be held Dec. 2 at the Bankers Club.

Executive

October 11, 1955, at 10:30 o'clock A.M.
(Eastern Daylight Saving Time)

will be held at the Antlers, 67

Street, commencing at 5 p.m.

has

Financial Chkonicle)

ROCKFORD,

111. —Robert

formed

Leonard

with offices at 63

L.

Cratty has become affiliated with
S. A. Sandeen &

Forms Vick De Lu Assoc.
(Special to The Financial Chronicle)

PASSAIC, N. J.—Leonard Stein

Co., Talcott Bldg.

to

He

Stein

&

Co.

Avcrigg Avenue

engage in a securities business.
was

formerly

Securities Corp.

with

Hunter

.

SAN

De Lu

El
a

DIEGO,
has

Calif.—Victor

R.

opened offices at 2136

Cajon Boulevard to engage in
securities

name

business

under

the

of Vick De Lu & Associates.

182

Volume

Number 5470

.

The Commercial and Financial Chronicle

.

.

(1403)

tutional

How Shall We Deal With

state

to

power

regulate inter¬

and

commerce

to

empower

every

year

Monopolies?

a

society from a competitive to
monopolistic economy."
The

vided

Landa

&

Stressing the monopolistic trend in labor unions, prominent
Washington attorney and former National Recovery Adminis¬
that to check the growing

monopoly

to

enforcement

the

ensure

disputes. Recommends
ism

along wiJi

of

criminal

legal restraint

a

a

ist

question:

by "labor union monopolies?" let
me
begin with two assurances:
First.
ized

I am not

with

labor

charging organ¬
intentions or

any

designs not openly asserted by the
outstanding

leaders

of

organized

labor.

Second.

I

than

ness

not

am

with

leaders

charging these

greater wicked¬

any

the inevitable

ambition

human

of

be¬

ing*; to pxoand

autocratic

that

powers so

they

become

destructive

liberties

of

other people.

:

To prove my

point,

I

Sherman

law when lawfully car¬
rying out their legitimate objects.
The
labor
organizations
them¬

Donald

American

Labor

Supreme

Court

of

of

in

the

of

the

,

United

States that "workers cannot thrive,
but can only die under competi¬
tion

between

themselves,"

and

that their freedom of organization
"must
comprehend the right to
eliminate
tween

competition

wage

individual

be¬

employees."

In

addition to this long-standing and
oft repeated declaration, it is evi¬

dent, in the prevailing demand for
merger

all

tween

unions, that labor lead¬
are seeking
also to eliminate
competition between unions,

ers

all

their

except
tion to

To

inevitable

competi¬

obtain and retain

members

I

close collaboration be¬

or

make

condemnation

my

of

labor union practices, to preserve
the sense of humor with which I

received

at

time

one

the

private

explanation of John L. Lewis that,
when he publicly denounced me
as
"a renegade from labor who
had turned against the breast that
had
suckled
him," there was

"nothing personal" in his critical
statement.

garded

Becoming
Monopolistic

been

advancing

from

force

in

private

enterprise

tion

a

of

of

the

into

monopolistic
and

more

a

highly
of

a

system

a

posi¬

controller
socialized

more

economy.

long
the

memories,
Sherman

1890 there

know

law

was

that when
passed in

rapidly growing
among the American people

fear

that

was

a

increasing

business

combi¬

nations and concentrations of

eco¬

nomic power were threatening us
with a controlled economy.
This
would
but
of

a

not

be

something

a

would
gers

the
rest

of

through

socialistic

more

corporative

which

•An

courts.

cover

It

then

of

ance

for

union

or

control

fascist state in
of

largely in

giant
their

state,

industry
the mana¬

businesses
economic

which,

today, under decisions
Supreme Court, there is a

practical exemption

of labor un¬

ions from prosecution in the fed¬
eral courts for

monopolistic

prac¬

tices, including the lawless
carrying on of what are clearly
illegitimate objects of labor or¬
ganization.
One

case

in the Supreme Court
the

make

situation

without

resorting .to
legalistic arguments.

address

of

b*r

the

Mr.

R'chbersj
Club

at

De¬




But

its

so-called

to make

clear

extensive

in

establishing,

contracts

ment in New York

doubt

plished

by

a

business

with

to

as

City.

what

There is

was

accom¬

because, when the case
Supreme Court (Allen
Local TInion No. 3.-

v.

797), the opinion of the

defined

Court

".

.

the

agreement

It intended

.

to

as

and

did restrain trade and monopolize
the

supply

ment in

of

the

manufactured
from

electrical

New

York

exclusion

the

to

other

in

of
and

states,

equip¬
City area
equipment

shipped in
did also

and

its price and discriminate
between its would-be customers."
Then

the Court said:

lem

this

in

one

be

beyond

federal

the

power

of

prevent

to

courts

trade

of

by

invocation of the Sherman Act.
It

should

be stated that, in the
Supreme Court opinions

series of

have resulted

listic

by

powers

late

the

having

Chief

been

dissenters.
criticism

in

the

sanc¬

monopo¬

labor

unions,
vigorous dissents,
Justice
Hughes
the

of

one

notable

So there may be a just
of the
Supreme Court

majority

whose

opinions

have

been

largely responsible for per¬
mitting labor unions by lawless
activities for illegitimate objects
extend

to

wider

monopoly

a

wider

in

to

and

the

a single plant or
industry by merely

paralyze

of

to

work.

unions,

In

a

to

an
a

long

lose

en¬

addi¬

their
in self-

the

reasonable

methods

are

by law¬

concertedly
also

use

the

by

of

but

and

the

criminal

executive

These

laws.

is

discuss

tiir^a^kplace
amP^trike

detail

monopoly power of organized la¬
bor, it would be wise to write na¬

laws

against
all kinds of fraud, coercion and
violence except those practised by
labor organizations for
the un¬
lawful purpose of preventing men
from
obtaining employment by
employers who want to employ

tional

the

and

state

criminal

laws

they

as

This

ity

officials
law

against

there
state

Many years ago, when I was
legal adviser to a large number
of labor organizations,
I under¬
took to protest to the head of one,

were

laws

interest.

human

of

who

disputes,
in all

enforced
end

not

political

or

ordinary

labor

in

might

insure

to

the

of

are

other conflicts

A Strike "Ain't No Pink Tea"

laws

enforcement

just

them.

the

timidity

won't

union

venal¬

of

local

enforce

labor.

forbid

and

be

prevent

a

least the possibility

of im¬
responsibility fo?
keeping the peace upon the govat

posing

direct

Continued

on

page

It

seems

Court

is

me

Supreme
be criti¬

particularly to

cized for such

a

decision

as

This advertisement is neither

an

offer to sell

nor a

solicitation of offers to buy

any

of these securities.

The offering is made only by the Prospectus.

in the

Apex

case (310 U. S. 469) where
dissenting opinion of Chief

the

Justice

Hughes

case

is

pointed

"Our prob¬
therefore a

that

out

Not

a

New Issue

October 4, 1925

the evidence disclosed "a sit-down

strike in

its most aggravated and

illegal form," and where he
marized

the

the union

"When

lawless

sum¬

activities

of

follows:

as

the

union

200,000 Shares
demanded

a

closed shop agreement and, on its

refusal, declared the strike, only
eight of the company's twentyhundred

five.

employees

members of the union.

pany's plant

Aluminum Company

were

The

of America

com¬

.seized and held

was

Its

machinery

equipment

demolished
"There

were
'wantonly
damaged to the ex¬
thousands of dollars/

Common Stock

or

£1 Par Value

not

merely a stop¬
of production, but there was
also
a
deliberate
prevention of
the shipment of finished goods to
was

V

'

page

customers outside

the state."

It might seem clear to

a

straight

thinking citizen that, when

a

law

explicitly exempted from its pros¬
only the "lawful" activi¬

Price $78 per

ecution
ties of

organization in carrying
"legitimate objects," the
exemption could not be legally

share

an

out> its

extended

to

lawlessness

protect

of

the

violent

union

represent¬
ing
only
eight
of
twenty-five
hundred employees which sought
to

compel

an

a

employer to make

a

closed shop agreement, forcing all

Copies of the Prospectus

his employees to

underwriters, including the undersigned, only in Slates in which

lose

their

join the union

or

such underwriters

jobs.

and

violate the Sherman Act when, in
order to further their own inter¬
ests

has

in

which

are

the

may

be obtained from

qualified to act

Prospectus

may

as

any

of the several

dealers in securities

legally

be

distributed.

repetition of the tortuous reason¬
ing by which the Supreme Court

as

wage earners,

businessmen

things

which

they aid and
pre¬

statute law.

Act

pro¬

priate for

observed

that

do

that

stroy

then

not

intend

unions

the

power

a

give
to de¬

to

competitive economy and
very vigorously:

"Seldom, if ever, has it been
claimed before, that by permitting
own

unions

to

I

heard

expanded

me

to

the

\

quote the reply

carry

on

their

activities, Congress intended

completely to abdicate its consti¬

could

an

eminent

lawyer argue

him that the Court

before

did

asserted

and

But it may be appro¬

of the late Chief Justice Taft when

Court

Congress
labor

re-written

the

to

hibits?"
The

49

power

You will not be bored with any

cise

if

adequate national and
to

American

one---do labor unions

very narrow

abet

th-2

But

labor violence there would always

genial, humane person,
against the use of violent tactics
which I felt he could more effec¬
was

in

legislation. But it is appropriate
say that, to check the growing

protect life and property

who

Remedy
the

not

to

of

enforcement

be

to

or

The

to

violence, unchecked by judi¬
or

of any¬

peaceful. They don't
much encouragement to be

This

lawless force

cial

are

value

inclined

not

are

I

and

peacefully
stopping work,

they

to most

in it. In,
bound to

individually lawless; and, in mass
picketing and such concerted ac¬
tion, they will incline to sadistic
cruelty.

able to pursue

in

men

need

powers.

These unions

engage

than the

tion

ful

an¬

never

matter of fact, a

a

who

strike

more

action, are able to obtain favoring
legislation and administration and
to prevent even mild limitations
upon their exercise of dictatorial

their objectives, not only

one

A strike is

no

thing they may personally gain.
They must be emotionally aroused
to
feel
that
they are fighting
through necessity for what they
ought to have. Under such emo¬

con¬

by

allied

voters

power

ability

with

great hardship

a

men

with

ain't

industry.

to the

follows:

power,

by

one

restraint

for several weeks.

managers, a
practical monopoly
in the supply of electrical equip¬

no

of

monopolistic agreements,

inevitable

would

the

a

one

use

economic

compelled employers

tent of many

union
of

when

by

one

against employers and, by

ers'

the

of

effective

was

City.

proceeded

and

labor

Economic

York

The origin of this case lay in
the action of the electrical work¬
series

union

strike

,

until

the

power,

troit, Detroit, Mich., Sept. 26, 1955.

New

economic

with

the

As

me

courts

control

judicial
pendulum
then
strongly toward the labor

swung

side

to make

as

so

issu¬

activities, particularly

in strikes.
The

the

federal

the

to

controver¬

much judicial

exercise

over

dispute

restricted

injunctions

difficult

the

extended

labor

a

wide range of

a

sies.

of

in

Norris-La-

the

which

Act

definition

of

re¬

resulted

This

of

passage

Guardia

to

was

in the nature

would render popular government
submissive to their directions.

Luncheon

the

it

what

an

control

Those who have studied, or have

labor

a

employers could
amicably make such a monop¬

olistic agreement as

construed

increasing abuse of
injunctive
powers
of
the

324 U. S.

The first thing to be made plain
today is how organized labor has

competitive

against

as

Bradley Co.

Labor

that

was

of

group

which

arose

came

Organized

not

effect

a

case

there have been

should

second point clear

my

in

and

this

this exemption of labor unions to
be so limited that further agita¬

many

possible.

as

hope,

as

the

to

ruling of the

in

tioning of the exercise of

tion

the

are

pink tea.

interest and organized for political

final

Court

However, the decisions of the
Supreme Court in the 1920s held

federal

R. Richberg

be

to

illegal conspiracies in restraint

of trade.

the

the

not

in

goes

numbers

this

a

prosecution under the

were

which

refusal

tions from

as

of

unions

being

candid

strike is

these

curious

be

us

en¬

size

enormous

These

strong

was

a

and

of

a

very

opinion

other about this.

tion,

result, with the
support of a friendly public opin-.
ion, the Clayton Act was passed
in 1914, definitely providing for
an
exemption of labor organiza¬

only

official

in conduct which restrains

Supreme

Let

particularly

not

But he said to

have today something like 17,000,000
wage
earners
organized in

certed

in

selves

but

business

leaves labor unions free to

union

again

Federation

a

public

sigh:
"Don,
pink tea."

We

on,

was

a

There is

existence.

their

union

alienated.

crucial

He did not like

going

was

his

and

deal with

we

monopolies?

of

tire

the unions.

As

with

wholly undesirable result—one

and not unreasonable activities of

need

declaration

of

doubt

no

Congress."

shock,
particularly to organized labor,
that in our early experience un¬
der the Sherman law, its restraints
were held
applicable to ordinary

quote
the

somewhat

was

How shall

labor union

the

to

come

But the desirability of such
exemption of labor unions is a
question for the determination of

of

the essential

first

It

question:

trenched

The

indignant union¬
What do you mean
an

we

an

of labor unions from the Sherman Anti-Trust Law.
To forestall

what

Crucial Question

trade.

the exemption

on

tively discourage.

unions

competition,

and then held:

engage

labor

in

pro¬

alone

Now

power.

which

compulsory union¬

on

clear, enforceable limitation

a

laws

the

The

"This, it is argued, brings about

organized labor, it would be wise to wrile national and state
laws

unions

combination

groups,

of

power

labor

destroy

in

not

asserts

that

could

Attorneys, Washington, D. C.

trator

Court

acknowledged
inconsistency in a law which

By DONALD R. RICHBERG*

Davies, Richberg, Tydings, Beebe

the

as

our

Labor Union

underestimate

to

of the Supreme Court.

powers

interested business groups to shift

15

not

construe

read bs the Court
construed

it.

The

a

simply

statute

to

had apparently
amiable

Justice jocularly said:

New York

Boston

Pittsburgh

Chicago

Chief

"Mr. B., I

think you underestimate the pow¬
ers
of the Supreme Court."
Un¬

fortunately for many lawyers and
good of the country, it is
becoming more and more difficult

for the

The First Boston Corporation
Philadelphia

Cleveland

San Francisco

16

The Commercial and Financial Chronicle

(1404)

popular
a

THE MARKET.,. AND YOU

had

with

on

repetition

junior-

a

this

week

a

Monday morning sag
that stopped within
pennies
of
breaching the closing low

with

Bethlehem

for

in

Steel

going

recuperative
on

was

reaching

,

luck
a

bit

new

Paper Stocks Boosted
One

running ,as much as
dozen points per ses¬

a

at least nudging its year's peak
Wilcox, higher up the ladder.

territory.

wide

rather

rather

some

moves

half

little

prominent
low

Stocks put

for

Babcock &

and Allis-Chalmers

By WALLACE STREETE

grade

fancy

while.

that featured
prominently in the

group

Kennecott

was

market letters

was

the paper

Thursday, October 6, 1955

.

bit break

without any particu¬
larly ominous clouds yet
if
if
if
visible in the corporate skies.
The rails, despite their There is still a
healthy fear
general lethargy, were able to prevalent in many sections of
offer a
contrary candidate, the country over "another
too. It was Kansas
City 1929" for the stock market.
Southern which not only out¬ This, the consensus seems to
performed its group but even favor, will work against any
the general market on
pros¬ immediate resumption of any
,

a

•

pects of a dividend increase.
industry with the analysts In
fact, one of the largest
of last week, followed
by a re¬ to be laggard in the coppers, boosting still higher their
houses was sufficiently hope¬
bound that checked out part as was Reynolds Metals forecasts for the
business that
ful of an increase of a third
of the
damage. It all served to among the aluminums.
the paper firms will do this
in the present $3
'"•v;
*
❖
payment
v' ❖
prove that the market hasn't
year. It is something of a logi¬ that it
even committed
it to
For the oils the story was cal choice since the half
yet shaken off the jitters or
year
settled conclusively whether one
largely of disinterest. gain in business ran sharply writing in a research report.
Union Pacific was the heavier
the Sept. 26 low will last
long Royal Dutch hasn't been ahead of the gain for the
member of this group while
as a base for a new advance.
showing any great buoyancy economy generally
in
the the Eastern roads went in for
*
*
*
and
when
it
occasionally Federal Reserve Board index.
a
good measure of backing
The omens weren't all fa- forged ahead temporarily it An added attraction has been
and filling that was far from
vorable. For one/volume was cut back rather quickly that the paper companies
impressive.
tended to dry up on reqpvery in subsequent selling. Stand¬ have been
fully as mergerspells. For another, the rails ard Oil of Jersey similarly conscious as other lines.
The Mail Orders
^
^
continued their backward wasn't overly prominent in
Sears Roebuck was the
Automobile shares con¬ wider
ways and on one day's selling recovery phases, although it
swinging of the mail
did penetrate the low of last occasionally
loomed promi¬ tinued to challenge analysis order
issues, partly influenced
week by more than a
nently among the losing is¬ as far as the two listed issues
point.
by the pending 3-for-l split
sues under pressure.
of the Big Three are con¬ which
won't be official for
;v, -V;-:;;./.
Aircrafts Act Well
cerned, while the independ¬ better than" a
month
yet.
In the recurrent
Cement
issues
that had ents continued to
selling
hug their Montgomery Ward was not
periods of the last couple of been sterling performers for
year's poorest prices. Highly- too convincing and it loomed
weeks it was
noteworthy that many months not only had optimistic news from Detroit
prominently in the casualties
a
group
of rather well- subsided for the most but and forecasts that 1956 busi¬
on
selling spells without the
deflated issues,
were a bit vulnerable to
pres¬ ness
including
prospects are for another ability to snap back with de¬
some
of the aircrafts, were sure
and
recovered
slowly. year rivaling that of 1955
termination.
the
better-acting ones in these Alpha Portland and Lone Star have been tempered by the
if
if
if
trying markets. Lockheed was were a bit more laggard than credit situation and the ef¬
able
to
recover
somewhat the others while Marquette
Air-conditioning shares
forts to make money more
were
more
definitely out of favor
easily than the general Cement, while no ball of fire,
expensive to keep down the and hovered
around their
run
of stocks, with United nevertheless stood its
ground share of national credit de¬
Aircraft
and
poorest \prices of the year with
well only a handful of points
Douglas also
voted to this one business. It
sion.

..

inclined

protracted

for

upturn

new

time.

some

The

trick

is

in

figuring out how long it will
take.

[The

views

article

do

expressed

not

at

with

coincide

time

this

in

necessarily

of

those

any

the
"ChronicleThey are presented
as those of the author only.]

Edwin Jacobs With

Jay W. Kaufmann Go.
Edwin Jacobs has become

with

ciated

asso¬

Jay W. Kaufmann &

*

Fedders

Quigan even nudging
through this week. Few of the
ject to somewhat wider
*
*
*
earnings estimates for these
The two major telephone
swings than other issues with issues were
The tobaccos, which were
very
optimistic
listings went in for diverse ac¬ General Motors moving over
and
the
also well depressed even be¬
feeling that the
tion. American Telephone was
ranges that ran to handfuls of
raised-dividend issues will be
fore the
latest storms, were more inclined to slip than not, points.
the Fall favorites found little

outperforming

the

general

under its

market.

able

to

year's high mark.

*

shoy above-average

recovery when the

going

was

❖

when

even

made

the

motor

stocks

sub¬

#

the

overall

good, while General Tele¬
with American Tobacco, phone recovered well from
Liggett & Myers and Rey¬ general selling and then went
nolds Tobacco
showing good in for some backing and fill¬
recuperative powers.
ing/

Issues Back in

Limelight

A

couple of familiar
back

were

and

this

strength.

in

the

time

They

limelight

on

contrary

were

A

the

ger
the

$325,000,000

3% Series E-1956 Consolidated

Notes

3%% Series F-1956 Consolidated

Notes

Dated October 17, 1955

Non-Callable

Home

Notes
Loan

are

the

Banks

joint and

and

are

Due

fiduciaries

undcir the

laws

several

legal

savings banks, insurance companies,

July 16, 1956

of

for

trustees,

many

obligations of the
investment
and

by

other

offering of these notes is, made by the Federal Home Loan
Bank Board
through Everett Smith, Fiscal Agent of the Federal Home
Loan Banks
nation-wide

with the

selling

group

of recognized dealers in securities.

EVERETT SMITH, Fiscal
Agent

25




Membership of these three
is actively interested in
municipal and corporate securities
1955.

groups

mea¬

frantic

of

investment

But the technical situation
which

flaws, not the least .of
was

in

a

the third
row

for

monthly
the

A full program

Broadway, New York 4, N. Y.
y.

more

than

two

years

straight, and the threats of a
change in political control of
the country which could be a
return to
high taxes and an
anti-business climate. Perhaps
the most important of these
was

market could put on a

serious

States.

features

Louis

V.

President

Sutton,

of

the Carolina Power and Light Co.
will

the

make

Thursday,

on

speak

Industry in the Two
Friday, Oct. 14,

on

by W. W. McPresident of the First
B^ink
of
Greenville,

Fachern,

Carolina, who will discuss
Conditions

Economic

South

and

delivered

be

"The

13

The principal address

the session

South

address
will
Development of

principal
Oct.

"The

on

Electric

the

in

Carolina."

Business

sessions

will

be

con¬

ducted by Edgar M. Norris, Green¬

ville. S. C., President of the Secu¬
rities

Dealers

E.

Wulbern,

B.

the

of

Wulbern,

Inc.,

Chairman

of

Carolinas,

Pierce,

Carrison,

Jacksonville, Fla.,
the

Board

the

of

North Carolina Municipal Council
and Mark A.
the

Board

of

Smith, Chairman of
the

South

Carolina

Municipal Council. Reports will be
made

by W. Kelvin Gray and W.
Jackson, President and

Herbert
Vice
the

the demonstration, chief¬

ly to the neophytes in invest¬
ment circles, that the stock

18

of business discus¬

entertainment

and

sions

banks and

has been arranged.

rail

average, the imponderables of
weakened confidence in the

dealers,

institutions in

financial

of

The Technical Situation

consists

the two Carolinas and

dissection.

for

The

October 6, 1955

a

ability of the market to keep
up its one - way performance

slates.

Price 100%

a

Club, near Pinehurst,
North Carolina, on Oct. 13 and 14,

Carolinas."

loss
These Consolidated

of

that

point and a half because of
rapid rebound from the

had its

joint meeting at the

Pines

Mid

of

as

September loss in the in¬
average was

pal Council and the South Caro¬
Municipal Council will hold

their annual

erally, and even the dollar of
today, came in for thorough

Due March 15, 1956

C.—Members of

N.

lina

National

llieretboiitri)

federal

Councils to Meet
RALEIGH,

will

Non-Callable

$125,000,000

assistance

made of such facts

day's selling. The
changed nature of the stock
market, the economy gen¬

one

Federal Home Loan Banks

(or

Carolina Dealers &

linas, the North Carolina Munici¬

rather

dustrial

Dated October 17, 1955

Sherman & Co.

the Securities Dealers of the Caro-

if

large amount of
space was still being devoted
by the market spectators to
the implications of the sharp¬
est one-day break for the in¬
dustrial average since 1929.
Much of a reassuring nature
was

NEW ISSUES

if

names

U. S.
Hoffman and United Dye &
Metals continued erratic
Some of the so-called "de- Chemical, which
forged ahead
and all-too-frequently were fense"
stocks
also
showed right in the teeth of concen¬
prominent selling targets signs of having run out of trated selling, United Dye

(or tiiercttbout*)

Stock

in these issues to nourish it.
if

easy,

$200,000,000

Broadway,
New York
members of the American
Exchange, in charge of the
unlisted trading djepjaHment. Mr.
Jacobs was formerly with L. D.
Ill

Co.,

City,

tone

was

Jacobs

Edwin

A

-

President,

two

respectively,

of

Councils.

golf

tournament

at

the

Mid

Pines Golf Course will be held

on

Thursday

by

a

Social

and

afternoon

followed

Meeting of all members

their wives that evening.

Number 5470

Volume 182

Transoceanic Development Cor¬

David

of acquiring carefully
selected equity investments in for¬
eign countries, other than Canada

it has been

Canadian:

taxes.

de Paris
(Paris); Banque
Lambert (Brussels); Brinckmann,
(Amsterdam);

important

des

significant step by a private
group representing American for¬
eign interests to organize a cor¬

poration for international finance

&

(Hamburg);

Co.

Credit

(Zurich); The
Deutsche
(Frankfurt/Duesselddrf/Hamburg); Deutsche Unionbank (Frankfurt); Helbert, Wagg
&
Co. Limited
(London); HeldBank

im¬

ternational

N.

Two

hand

the

major institutions are

finance;

(World
ment

Development
which has so far

in

constituted
the Bank

the

under

to

of England for

the

countries.

the

statutes

pur¬

World

Under

is

Bank

to

Finance

Co.

powered

to

has

so

similar

course

Bank.

that

which,

as

the

new

vestments.

the
in

vest

also

to

velop

not

existing

members

empow¬

in¬

only to

but

companies

promote, finance and de¬
enterprises. The com¬

new

will give first consideration
providing, in cooperation with

local and other investors, new cap¬

for the expansion

ital

of mineral,

manufacturing and commercial

en¬

terprises in countries providing at¬
tractive

investment

authorized

The

opportunities.
capital

partner,
represents the second generation,
and Kurt Berger and Paul A. Co¬
hen represent the third generation
the

which about threefifths has been taken up by Amer¬
ican
and
Canadian
participants
about two-fifths by

European

Shulman, has been associ¬
ated with the firm for almost 50

Ira M. Pike, another part¬

years,

has been associated with the

ner,

firm for more than 40 years.

&

Herzfeld

in European fi¬

office

Broad Street

is at 30

office

also has

and it

an

Switzerland. The firm's

in Geneva,

main

has

circles, and

nancial

branch office at

a

New York City.

500 Fifth Avenue,

of the

Chairman

William

isSir

new

company

Wiseman,

Bart.,

of Kuhn,
Loeb
&
Co.;
Vice-Chairman is
George D. Woods, Chairman
of
The First Boston Corporation, and
Chairman of the portfolio com¬
C.B.,

C.M.G.,

mittee

is

partner

Siegmund G. Warburg,
of
S.
G.
Warburg &

Chairman

Company Limited.
Other members of the Board of
Directors
worth

are:

Charles Quine Joins

ited; Eric Korner (Vice-President)
S.

G.

Warburg

&

Comoany

Limited; Edward Townsend (VicePresident)

of

Corporation;

The

Jean

Boston

First

Cattier

of

White, Weld & Co.; Peter Fleck of
Amsterdam Overseas Corp.; Mer¬
rill Griswold of Massachusetts In¬

Hill

Manager

S.

Co.;

Bernard

Lechartier

Co.; Leo Model of Model, Roland
#

James

Stone;

Bank

of

Muir

of

Royal

Canada; James Stewart,

A.

participants
C.

Allvn

&

pany




from

do

I forecast that most major

Louisville

This

reaction.

will

latter

fund

both

money

which

oj

owner

help the 27 industries which
benefit from the building of every

and

-

(3)

cize

Increased

Greatly

run

means

in¬

be

elec¬

too

Expenditures

to

depended upon.

they

the Presidential

will

Sinking
Com¬

missioners for
seventh

con¬

Merle E. Rob¬

be.

that the contracts

President to
succeed Lee P.
Miller

izens

Thomas Grshi

Cit¬

of

Fidelity

Bank

will not

New York Stock

come.

President

has announced the following firm

Do

friends
and

Would

changes:

of

President
have

wife

his

that he does not like the
details, the public speaking and
entertaining
demanded
by
the
Presidency.

work

expenditure

of

was

thinking

is uneconomic.

Exchange

The New York Stock Exchange
the

Eisenhower

General

Trust Co.

Weekly Firm Changes

signed for some years

Peter
W.

Hill

Darlington
retired

He
the

enjoyed
Army

largely

and

confined

to

Others

Thomas

partnership

Cosgrove, Miller & Whitehead

Sept.

30.

Mahlon O.

being

where his

planning.

in

and

from

known

cannot be

&

this

Perhaps

Like to

a

can¬

Company, was
chosen Vice-

signed until after the election,

Intimate

Furthermore, al¬

though necessary, the

health

to whether he will

as

who

What

To the extent these

but

Board

Fund

in

This work will doubt¬
be held up until it is

if they are

paid for by taxes, they are not
serious;

now

didates

.refrigerators, washing ma¬
chines, modern kitchens, and other
things which improve the effi¬
ciency of the home; but buying
TV sets, with fiardly a down pay¬
ment, may be questionable.

Military

again.

known

Install¬
on

of

the

the

secutive term.

decision from President

a

Eisenhower

I do not criti¬

automobiles,

with
the eco¬

factories

great factor

a

pending

tric

(4)

be

less

the purchasing—even

the

ings have been held in abeyance

of their own, and not

Purchasing.

turn

deter¬ ertson, Liber¬
mining the immediate future of ty National
Bank & Trust
business.
Many large undertak¬

buy houses on shoestrings.
ment

in

Eisenhower's

President

will

however,
should have been made to put up
money

supply

thus completing
nomic cycle.

house. Home purchasers,

more

which

orders,

is well

the

house

to

business,

general

determines employment. Employ¬
ment
determines
retail
sales,

This exceeds that of pre¬

The

LOUISVILLE,

-

man¬

Building

Sinking Fund

Ky. — Thomas
probably not reach as high as the Graham, The Bankers Bond Co.,
preceding
upward
movements. Inc., has been
What will really happen to the
re
elected
stock market
will depend upon President of

its

B.

Jones

partnership
Weeks

Bradley and Clayton

withdrew

on

in

from

This announcement is not

offer to sell or a solicitation ofan offer to buy these
offering is made only by the Prospectus,

an

The

for the

Sept. 30.

securities.

$10,000,000

past 10 years.

W. W. Jones & Co.

Pacific Power &

Formed in New York
W.

W.

Jones

formation of
as

W.

W.

Jones & Co.,

municipal and
dealers and
exclusively.
The

brokers in state,

bonds

revenue

dealer
new

141

banks

First Mortgage

the

announces

Dated October 1,

Jones

Mr.

Bonds, 3%% Series due 1985
Due October 1,1985

for

Price 101.377% and accrued interest

firm will maintain offices at

Broadway,

Light Company

1955

York

New

formerly

was

\

City.
Man¬

of the municipal bond brok¬
erage
department of Mabon &
ager

Co.
The

New Hutton Branch
SPRINGS,

has reopened
North Palm

branch

the

at

170

Canyon Drive under the manage¬
of Albert L. Coffy.

ment

Talmage Branch

BROOKLYN, N. Y.—Talmage &
Co.
at

have

1646

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

such

Calif.—E. F.

& Company

PALM
Hutton

opened

a

branch

Pitkin Avenue

office

under the

management of Eugene Rosenfield
and H. David Epstein.

HALSEY, STUART & CO. INC.
BAXTER, WILLIAMS
NEW YORK

HANSEATIC CORPORATION

HELLER, BRUCE &
October 5, 1955.

GREGORY & SONS

&.CO.

STROUD ^COMPANY

WM. E.POLLOCK&CO.,

,

WEEDEN&CO.
IRA HAUPT&CO.

FOSTER A MARSHALL

THOMAS &. COMPANY

CO.

INC.

.

limited

Hornblower

San

has been a
Kaiser & Co.

partner of

general

are:
Com¬

Inc.; American Metal Com¬
Limited; American Research
& Development Corporation: Am¬
sterdam
Overseas
Corporation;

pany,

the

that

years.

spent,

part along these lines during

1924, and

since

cisco

New
the

Investment

by

Tremendous

vious

busi¬

these critical weeks.

Quine has lived in San Fran¬

Mr.

merce.

Among

wit;

to

felt they must invest it. Fur¬
thermore, they naturally turned
to the biggest companies.
Houses.

every

wageworker will do

Thomas Graham Heads

his election as Vice-

and

Street,

of

C.B.E., of Canadian Bank of Com¬

American:

Babson

agers

(2)

that

hope

and

President and Director of the firm.

of

Foncier, Franco Canadien;
of Bear, Stearns &

Lewis

L.

off,

155 Montgomery

Francisco office,

Alan Hoover of New
York; Andre Istel of Andre Istel
Credit

fast

I

Charles W. D. Quine

Resident

as

vestors Trust;

&

so

sales,

Richards & Co. announced the as¬

S. Griffin (Vice-

President) of The Toronto & Lon¬
don
Investment Company, Lim¬

Calif.—The

FRANCISCO,

investment securities firm of

(Vice-President) of Kuhn.

Loeb & Co.; A. G.

these

are

Hill Richards & Co.

Dil-

Richardson

J.

them

Buying

(1)

these

required: More ad¬

Yet, each dip in due
time will be followed by an up¬

ward

Great Factory

SAN

W.

Roger

stallment?—of

always

has

Stern

well known

been

sociation of

participants.

i

Na¬

partner,

than

$5,000,000, of

of

One

family.

company

nadian),

and

senior

the

Reichenbach,

the

of

is $10,000,000 (Ca¬
divided
into
100,000
shares of stock, par value $100.
The initial paid-in capital is over

new

Stock

York

lations.

his

ceding dip.

await¬

set

stimulate

dips will go lower than the pre¬

dy¬

Trusts, Pension Funds, and Insti¬
tutions. The money has come into

•

pany
to

the New

of

Exchange. Established in 1880 by
Felix Herzfeld, the firm was origi¬

of

charter

company

Stern,

bered among its partners members
of
the
founder's
family.
Max

mainly in equity in¬

Transoceanic^

to

future
depend

vertising and better employee re¬

nessman

will

market

Adver¬

on

above,

prosperity

two things are

,

of the founding of Herz¬
one
of the oldest

&

the

now on:

ing something

has, throughout its history, num¬

company,

What

often
five

October 3 marked the 75th anni¬

of

matter of policy, will

a

be interested

ers

75th Anniversary

the

of

activities

,

Money

and

To

level.

Employment

mer¬

retail sales at the grass-roots

upon

the

and

me

stated

As

business

tax

run

More

tising."

Effect Upon Business and

namite" which

far followed

to

The

by

have

can

"Spend

dividends, the yield is

re¬

that

member
I

adopted in 1899. Herzfeld & Stern

in

em¬

these two institutions will be sup¬

plemented

col-r

will

umn

"sticks of

equity

participate

investments,
World

weekly

were

feld

income

position would

asking what
now
do to prevent a
depression,
I reply:

business

this

Herzfeld & Stern

versary

the

altogether too small to
risk of buying stocks.

lowed

they

Except in the

a

manufacturers

When

chants telephone

Funds,

deduct

from their

you

who have fol-

nally known as Herzfeld & Com¬
pany.
The present title was

although

Ltd.,

of

Pension

investors

time.

some

Those

noted

of

arranging loans and
Commonwealth Development

the

for

due

run

greatly to the Administration
give the country faitn..

and

Institu¬
tional Investments, and other non¬
taxable purchases, low yield may
be the greatest factor. After most

set

been

has

of

case

*

-

holding such

add

Poor Yields of Stocks After

Payment of Taxes.

which

sion

Fi¬

auspices

(5)

our

explo-

(Lon¬

Sons

the

off the

coun¬

Development

Commonwealth

a

various

of accelerating investment in

confined

&

to

happened

match

under de
Rothschild, Paris; S. G. Warburg
& Company Limited (London).

Co. Ltd., which was recently

nance

pose

Rothschild

M.

been

nas

don); Various Interests

the other hand the

on

Commonwealth

its

for

has

What

S2 billion for develop¬

projects

tries, and

one

Bank

and

Bank),
over

the

on

International

Reconstruction

loaned

condi¬

His

poor

good friend President Eisenhower

Group

already active in the field of in¬

tions.

economic

as

Banque

ring & Pierson, Pierson Co. (Cu¬
racao);
Nederlandsche
HandelMaatschappij
(Amsterdam); Sal
Oppenheim, Jr. & Cie (Cologne);

proving -world

Urges

not

Secretary of State or
of the Security Board.

or

Chairman

(4) military
yields of stocks after payment of
a way to prevent depression "Spend More
Money on Advertising."

Pays Bas

Suisse

and

in

Royal Bank of Can¬

will

he

know

now

fense

buying of "blue chips"

greatly increased installment purchasing;

(3)

European: Amsterdamsche Bank
et

dynamite," which could

by institutional investors; (2) tremendous building of houses;
expenditures, and (5)

Wirtz

confidence

E. M. War¬

five "sticks of

as

off the stock market explosion: (1)

set

ada.

announced.

reflects

Mr. Babson lists

burg & Co.; White, Weld & Co.

the purpose

and

We

one

again. But I believe that he would
have liked to be Secretary of De¬

By ROGER W. BABSON

Rockefeller;

Laurance

and

L. F. Rothschild & Co.;

Corporation and S. G. Warburg
& Company Limited of London for

ton

an

No

opposed him or ignored his orders.

poration Limited has been formed
as
a
Canadian
corporation
by
Kuhn. Loeb & Co., The First Bos¬

represents

details.

carried

poration & Morris Plan Corpora¬
tion of America; The First Boston
Corporation; Andre Istel & Co.;
Kuhn, Loeb & Co.; Model, Roland
& Stone: Pennroad Corporation;

Corporation Formed

This

the

out

17

Bear, Stearns.& Co.; Equity Cor-:

Transoceanic Devel.

and the United States,

(1405)

The Commercial and Financial Chronicle

.

..

&

18

The Commercial and Financial Chronicle

(1406)

Course

Nationalization's Balance

The

New

Bill in

of

course

This

sity

1945

general
in-

election,

its

of

bers

4

first

4

alization Bill,
providing for

Nation-

nationalization.
Private owners
would have made a much better
job of it, if they had been allowed
to sell the coal at economic prices.
It is realized to an increasing de-

that coal nationalization has
the nationali- been a costly failure. Rising prozation
of the duction costs, declining output in
Bank of Eng- spite of progress of mechanizaland.
It
was
tion, frequent strikes, have been
followed by the price the nation has to pay
the nationalifor the experience,
zation of coal,
The picture is rather less untransport, gas, satisfactory as far as gas and
electricity,
civil
Paul

and

Einzig

aviation,
iron and

steel.
the

exception

of

With

gree

electricity
are
concerned.
But,
judging by the steep rise in gas
and
electricity
charges,
the

said to have
striking improvebe

cannot

change

the

latter, and brought any
of road haulage
transport, the in- iment.
dustries nationalized.by the Labor
The deterioration
>

Government

ownership

•

left

were

by

the

in

public

Conservative

Government.
The

time

has

assess

the

gains

rived

by

the

now

to

come

losses

de-

from

and

nation

its

ownership of these industries. As
far

as
the
Bank
of
England is
concerned, the change has been
negligible. Even before the Bank

stocks

were
acquired
compulsorily by the Treasury, the Bank
England
did
its
utmost
to

of

out the policies determined

carry

by the Treasury.
the

ever

of

It is true, when-

Governor

England

of

of

the

Bank

the

day
had
than the
Chancellor of the Exchequer of
the day, some of the Treasury's
policies were strongly influenced
by
advice
received
frobi
the
stronger

a

personality

Bank.

But nationalization has not

made

any

difference

from

this

point of view. It is true, the Governor
is now appointed
by the
Chancellor, and the Treasury is
.

legally in

now

tate

position to dieBank's policies and ac-

the

tions.

In

practice,

Chancellor

however,

bound

is

the

from

advice

a

to

the

listen

Governor

to

and

officials of the Bank, in the same
his

he listens to advice from

as

way

time

advice

in

ognizable

From

influence of the

time the

to

Eank's

officials.

senior

own

is

distinctly

the

rec-

Treasury's

ac-

tions.

since their nationalization
is
only too obvious to anyone
who is in a position to compare
their
present
conditions
with
their
prewar
conditions.
The
service the travelling public receives is not nearly as good.
It
ways

England has barely
by its nationaliza-

been

affected

tion.

improve, when the
reconstruction
scheme
is
comwould

ditions

But this may take many
and it will cost many hun-

pleted.
years,

dreds'

of millions of pounds,

This

to the question
of capital investment programs of
brings

the

right to determine the broad outof

its

Most

ness.

policies,

with

interfere

it

does

cay-to-day

not

busi-

things are carried on
Relations between the

before.

Bank and the

banking community

industries

major

now

same

as

if

nationalization
the
Bank was well in a position to
induce
the
banking community
its

before

its hints.

to follow

So the balance

hationalizations

of

neither

gains

the Bank of

However,

shows

losses as far as

nor

England is concerned,

the

cannot

same

nationalization

be
of

said

about

the

the

coal

industry.

Conditions

thoroughly

trend

business

of

with the aid of

investment

of

and

adjustments of its

that

of

should

programs.

Government

the

be

increased

itself,

during

de-

during
booms and inflations.
In practice
the investment policies of these
and

have

industries

not

enced

by

to

the

British

influ-

been

noteworthy degree
ups
and downs of the
economy.
Indeed
the
any

it at times diffi-

found

Treasury
to

apply its policy of credit

culs

as

far

tries

abie

to

fort

to

in

are

tory.

The

output

is

inadequate,

investment policy is short-sighted,

relations leave

desired.

much to be

Centralization

has

been

detrimental to efficiency, and the




the

resist

of

strikes

major

the

and

the

and

The

lists

ule

granting of the demands. The
the goods and services
by

the

nationalized

Tuition

$20.

-phe

each

limited

spirit

do

not

show

signs of willingness to exert

themselves

to

the

ensure

success

of

nationalized

whole,

a

escape

the

it

is

industries

difficult

conclusion

nationalizations

have

that
failed

to

the
to

justify themselves in the experience

a

sched¬

will

course

way

on

subject

will

only

will

stock

notified

as

as

possible.
It is

turned to:

ing,

immediately and

Secretary,

Spencer

The

of

Trask

York,

&

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

of the last ten years.

place

illness,

lectures

c/o

Broad

The

sharp break in prices of equities which

very

witi

the

of

announcement

President's

a

To be sure, part of the betterment in
was

not

are:

too

proved

Rates," Dr. Marcus
Nadler, Professor of Finance, New

prices of Treasury securi¬

due to t.ie marking up of
quotations, with indications that
volume was involved.
On the other hand, the im¬

much

in

tone

amount

Interest

York

appears to

substantial recovery in quotations. At
same time, with t
e break in prices of common stock came a
fairly substantial upward movement in quotations of Government
obligations.

Thursday—09b 6: "The Outlook
for

to be not

seems

concurrently
followed by

was

ties

Scheduled

over¬

the

Investment

New

heavy

the

market.

took

re¬

Mr. Edward B. deSeld-

Association

Tnere

of

one.

stock

important that applications

be filled out

prices.

thinking because it

that

space

scon

The

ing very new about this kind
have been evident for some time
important and significant factors in the credit
restrictive operations of the powers that
be, was the action of the
cqu.ty market. The recent unfortunate illness of the President
appears to have had a somewhat sobering effect
upon the common
cf

accepted

available

to

be

be

money raising by the Government.
note, just offered by the Treasury, was

was no less anticipated.
There appears to be considerable
opinion in the financial dis¬
trict t.iat the future course of the Government bond
market will
depend in no small measure upon the future trend of common

first

a

new

subscription of the 21/43

be

Association.

Investment

Non-members

and

space

for continued

now

The 2Va% tax anticipation

in line with expectations of the financial
district.

served
basis,
with
being given to members

the

of

to

Treasury bill money
Also the debt limit does not give very much lee¬

raising venture.

panel

date,

the

due

priority

| of
maturities.

the

Government

investment

buying,

market

did

especially

bring

in

in

a

certain

most

the

distant

University.

Rally in Governments Heartening

Monday—Oct. 10: "Distribution

The fact that the Government market has shown
greater abil¬
to rally is considered to be a favorable development, even

of

Corporate Securities," Mr. Rob¬
ert A. Powers, Smith,
Barney &
Co., New York University.

ity

ti ough

from time to time part of the gains registered were sub¬
erased. Nonetheless, it is indicated that some of the

sequently
Wednesday—Oct. 19: "The Out¬
look

for

the

Domestic

caution which has been

Economy,"

is not

Professor
Chief

Martin R. Gainsburgh,
Economist, National Indus¬

Wednesday—Oct.

26:

Topic

Equity Market Key Factor
The opinion that the future action of

to

equity prices will be very
important to the coming trend of the Government bond market is
based

University.

the belief that

on

tend to

postpone, for

£1/4%
y

Wednesday
Ahead

Charles

—

in

Nov.

16:

Wall

21:

"Portfolio

Jules-

on

until

I.

Panel

more

reality.

a

3s cf 1995

and

Moderator

G.

HEIGHTS,

Edwards;
firm

opening of

3.

a

Avenue

I.,

&

Island

and

Hanly
the

be

are

York

office

4th

5th
on

be

partners

John

C.

will

be

in

the

Cronin.

Corning and Robert
business

3s

It

is

in

tendency now^

a

believed

that

this

time goes

as

when

evidences that the 3s of 1955 have been well taken

even

thcugh quite

100 level

insurance

was

a

few of these bonds showed up for

reached.

companies

It

was

reported that savings

the principal sellers of the

were

quotations temporarily moved back to the cost price of

this bond.

for

Ins.

year.

fully

is

engaging in

the in¬

over

15

a

offices in

from
under

the

Savings

the

firm

Ainsley Bldg.

name

Insured

of

DENVER,
is

Colo.—Russell

engaging in

ness

from

Exchange
name

of

a

offices

DENVER,

ZarlengQ
3025
in

Service.

Building
Investment

the

a

West

Colo.

has

—

Dominic

A.

offices

at

opened

Scott

Place

to

engage

securities business.

Two With B. C. Morton
Sal'e

securities
in

Opens

(Special to The Financial Chhonicle)

securities business

Forms Inv. Sees.

office

W. Terry,

D. A. Zarlengo

Savings Service

MIAMI, Fla.—Bernard Finchell

George

all of whom have been in

vestment

banks and

office

past

equipped to handle complete bro¬
kerage service.
•
Resident

of

more

in¬

an

adjustments

Long

branch

located in

office

though there is

seems

tax

Ed¬

Hemp¬
stead, Huntington, Bay Shore and
Valley Stream.
new

are

sale when the

Jackson

the

making

are

operation will continue to gain momentum

by investors

Monday,

to be opened within the

others

Edwards

on

of

There

in

in

N. Y.

It

institutions

along.

Y.—

New

of

number

lengthen maturities in these switches.

kind

has announced
branch office at

This will

wards

of

members

Exchange,

N.

partner

Regain Favor

continue to be important to the volume

activity in the Government market with reports that

creasing

Finance, New York

investment

years.

rising and active equity market will

a

of the things which they are endeavoring to bring about

their portfolios.

Hanly,

M.

hand,

Switches and swops

Dis¬

Management,"

Bogen,

of

JACKSON
Herbert

will

other

have become

Mr.

to

The

the

that the monetary authorities will not only keep the pressure
the money market, but there will most likely be added pressure

mean

Edwards & Hanly Branch

Oct.

meas¬

that be.

On

University.

Stock

market will

pushed ahead again to 2V2%. Likewise, it
"prime bank rate" will remain at 3V2% as long,
on the money market is not increased
by the

Harding, Senior Part¬
Smith Barney & Co.

Professor

&

stock

B.

Monday—Nov.

the

pressure

powers

"What

Street,"

the

as

Financing via Convertible De¬
bentures," Mr. John J. Scanlon,
Treasurer,
American
Telephone
& Telegraph Co.
Lies

common

instead of being

could be that the

i t

less certain

a

time.at least, some of the restrictive

which could be taken by the monetary authorities. This
might
mean
that the rediscount rate will stay at the current level of

announced.
"E q u

a

ures

Wednesday—Nov. 2: "Municipal
Bond Financing." Speaker to be

Wednesday—Nov. 9:

evident in the Government bond market

so

it has been.

as

made in selected long-term Government securities.

Bogen,
Finance, New York

of

as

case,

be determined. Dr. Jules I.

Professor

strong

This does not, however, mean that
feeling of optimism has taken its place, because this is not the
even though
somewhat expanded commitments are being

a

trial, Conference Board and Ad¬
junct Professor, N'ew York Uni¬
versity.

The

nationalization,

Taking
as

They

in

is far from

industry

satisfactory.

0f

workers

among

nationalized

any

with

first

come,

in-

award,

wages

Surprise

the large new money operation of the
Government, appears to
the main reason for the ending of the

as

The attendance will again be

.

to

skepticism.

The

lectures

enclosed

the

83-18
37th
1 ^
J
dustries are adjusted as a matter Heights, L.
course

of

New Note Issue No

topic
and
speaker for each of these sessions.

the

of

hour

one

conclude

discussion.

oc-

nationalized

prices of

supplied

will

Dr.

industries,
the outcome has been usually
in

to look at Government securities

now

amount

be

seven

cussion:

industries.

private

on

include

ef-

de-

tendency

a

somewhat lessened

a

our

it even more difficult
wage

been

Treasury has discontinued the weekly offering of $100
million additional of Treasury bills for new
money raising pur¬
poses.
The $2,750,000,000 of eight-months tax anticipation
notes,

in-

of
industries

excessive

than
of

its

rising trend

Nationalized

resist

Most

service

the

have found

to

to

has

which starts Oct. 6,
is being given in the Divine Room
of
New
York
University at 90
Trinity Place. The program will

ner,

nationalized

the

use

prices.

pertaining

with

on

The course,

tfie Government been

has

dustries

topics

lecture

market

better tone in

business.

nationalized indus-

as

concerned."

are

^or

various

will

a

thougn L.ere is

executives

corporate
finance

reduced

essions

s

Univer¬

prominent mem¬
investment
banking

the

in

active

prices

The idea
was
that the capital expenditure
0f the nationalized industries, as

unsatisfac-

there

labor

con-

the Government would be in
position of pursuing Keynesian
monetary policy by regulating the

curred

true,

position,

sheet

its

under

troi,

a

instructed
by
the
Treasury, to direct the banks to
adopt certain measures, such as
the cutting of credits.
But even

the

exactly

is

of

arguments in favor of
nationalization was that, with the

manc}s

It

One

main

before.
the Bank is in a

are

us

industries.

nationalized

While the Treasury has the

as

that, at the cost of con-

is hoped

siderable capital investment, con-

cult

The Bank of

lines

rail-

the

of

outstanding

year

Government

investment buying of these
obligations. Also, the recent action of
the equity market has not been unfavorable
as far as the
feeling
towards tie Treasury market is concerned. To be
sure, Lie caution
and uncertainty which has been so evident
in the Government
market has not been dissipated by
any means, but it seems as

In¬

Securities

professors,

fraternity,

National Miheworkers Union is
ten years ago the Labor Govern- firmly
opposed to decentralizament, which assumed office with tion, for fear that it might become
a
big' majority as a result of the the thin end of the wedge of de-

troduced

with

dustries."

LONDON, Eng.—Almost exactly

1

the

of

Governments

on

the constructive
side,
evidence, and this is attributed to a somewhat
improved psychological attitude, along with a minor
expansion in

fourth
the
entitled, "The

lectures

Economics

Says the Bank
of England^has barely been affected by Nationalization, but the
railways have deteriorated, and conditions in the National¬
ized coal industry are "thoroughly unsatisfactory."

1

The

presents

year,

Reporter

By JOHN T. CHIPPENDALE, JR.

cooperation with the
University Graduate

consecutive

by the nation from nationalized industries.

ly

Our

School of Business, for the

the 10th Anniversary of the first National¬
Britain, assesses the gains and losses derived

Dr. Einzig, noting
ization

York

Thursday, October 6, 1955

of

Association

Investment

New York in

By PAUL EINZIG

ETT

...

Economics

on

of Securities Business

Sheet in Britain

.

busi¬

Railway

under

the"

Securities.

(Special to The Financial Cheonicle)

Mass.

—

Morgan and James

C.

BOSTON,

Irving

G.

Su-Brown

have become affiliated with B. C.

Morton &

Co., 131 State Street.

Number 5470

182

Volume

.

The Commercial and Financial Chronicle

.

.

(1407)

Security

Analysts

forecast

19

earn¬

ings of about $2.25

Public

Utility Securities

a

calendar year 1955

(assuming that

recent
as

By OWEN ELY

economic

compared

$1.84

in

Share

Delaware Power & Light
Company

Western Pacific
Although

market

overall

railroad

of

action

the
to

desired

this year

same can

be

left

has

stocks

considerable

far

so

Delaware Power & Light serves

suffered not only

from the economic
readjustment but,
also,
from the ending of the Korean

Sta-

points have been
most impressive. As early as July

J?® wifhL^trSvanrfl^^H

zation) dropped sharply to $6.13 a
share comparedwith

for

not be said

operations and earnings.

tistics

these

on

cumulative
rose

income

net

1955

for

roughly $490 million which

to

war,

-

in

There

1953.

,

and

year
-ill-

,

interval

and

of

crease

represented
73%

some

a

year

improvement

Further

ago.

in-

an

over

was

registered in August. From here
of course, comparisons with

on,

will

1954

in

be

relation

less
to

will be with

traffic.

spectacular

1953

but

comparisons

analysts

there¬

are

reported

industry's

the

in

the

was

likelihood

1953

best

which,
in

vear

of

number

a

favorable dividend

actions

the

of

viewed

couple

to

strong

securities

Promotes

that

stock

PDAATPtcPn

+•

disappointment
which

but

signs

of

is

still

investment

*

rT

+u

lltree

Eisenhower's illness,

as

opinion that
whole

a

once

settles

down,

ment of the service area and

territories

tiguous

factor

important

That this trend
run

its full

lines

in

could

mean

growth.
even

yet

evident from

the company

on

which

California
more

additional

an

of the huge Ford

up

assembly plant

con-

been

this

in

has not

course is

the opening

in

has

than $5

revenues.

s

alone

million

*

of

tentiy

in

JL

'

i

J|

last

year

Patrick r. Byrne
bank's

Francisco

San

b

t. a. Griffmger

President

ment
Iiieni

headquar-

Clark

S.

Beise.

all of the Bond Invest_

ueptnuuem,
department,

axe
are

Patrick
rauiuK.

x^,.
R.

Byrne, Theodore A. Griffinger and
Lawrence h
Mr

Prager.

Prager

the

A

B

a

?he °uani^ipal bonyd

been

field

has

ht3°d ,,ntVPrsitv

deeree

haf

who

since

j930,

Bank-S

Bond

partment in

He

with

came

investment

1936 and

de-

named

was

head of the

Municipal Bonds Tradjng section eight years ago.
Mr
Griffinger is a Princeton
University graduate who entered

1929

well

among

up

the

over

When Western Pacific came out
of reorganization the status

preferred stock.
nated

last

year

of the

adversely af-

fected by an issue of

participating

This was elimipartially through

substitution of income bonds
,

partly through redemption.
been

considered

that

last

this

and

It has
step

emerged

reorganization and which is

low in relation to the road's earn-

The

road




Sta-

.

-----

—

,v

„L

company s electric revenues is im¬
a^' while 38% is domestic,
27% commercial, 10% municipal,
etc. Industrial business is of the
relatively stable type, hence the
company's future growth should
not be too much affected by business
cycles.
The
company
has

transfer

sponsored several successful sales
campaigns featuring larger power

between

and

subsidiary,

possible

to

power

company is now constructing

showed
year

a

and

Tidewater

Associated

P. & L. has

ware

grow-

favorable
which virtu-

a very

consuming

gas

appliances,

dryers and
annual dobelow the

national average there is

an op-

as

at the end of 1954

tb? Pj'esent. dividend rate of $.1.50

%

attorns a yield of 4.1%. The priceearnings ratio based on antici-

aqcj

pated

follows:

-pundpd

Debt

p"eferred 4to7ks"
£0mmon stock

19

^

41

'

While

as

earn

gas

President

and

an adequate return on
rate base. The supply of

x

$m

the

romnanv

to

this winter will be ample-25%

Columbia Sees, in NYC

to

Columbia

m%

nlans

is

plans to s
and $5 mil-

< probably

Securities

Corpora-

R°n baS been ^ormed with office?
at 135 Broadway
.

New York City,

securities husiness

this year to engage in a securities business,
December) Offices are Louis Voso, President

early in
"» sbe"^
the shouldi be balanced by an.issue oi
gas
™m°n stock some time next

Cooper

expects now

35
—

.

earnings of $2.25 is

16,4' °nly moderately above
average.

*16

Equity

(1 858,228 shares)

Revenues are currently about
Wh'le the company
13% gas and 87% electric. The sue $10 million bonds
is now "back in the gas Ron preferred stock

business,"

the

on

our

share earnings. As a stockholder,
11 hopefully anticipate increased
dividends."
At the recent price around 37,

Millions

was

company

phrases it

and Dela-

use

about

dlan Rlver in southern Delaware.

Oil.

operating contract
ally insures a 6% return

c7ld^d^Tn3
75,0001 kw generating unit

th»

year.

more than last year—and the comPresident Stuart Cooper in a
pany
will also have a modern recent talk before the Society of

This advertisement is neither
to

Treasurer; L. M. Voso, Vice-

President;

;th

Louis

Mr_

^

,

„

„

Voso,

Jr.,

Sec-

previouslv.

^

.

Witn j. i. trruoer & uo. ana nunter Securities Corp.

last

year

buy

any

an

offer

to.

sell

solicitation of

nor a

an

offer

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

NEW ISSUE

October

Servo Corporation

5, 1955

of America

$600,000

FYAH311 <?£ WlltC

L

The

award

made

was

for

the

Exchange's 1955 brochure, "Facts
for businessmen planning 10

ahead."

,

•

Dated October 1, 1955

for

its

stocks

in

1, 1975

110,000 Shares
Common Stock
Price

$5.00

($1

par

per

share

value)

The 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.

years

The Exchange received its first
award

Due October

Price 100%

,

IRA

HAUPT & CO.

"Advertising in Action"

pamphlet
and

"Let's

Look

at

Bonds," published in

FRANCIS

I. duPONT & CO.

JOHNSTON, LEMON & CO.

1951.

Cornells De Vroedt Upens

power.

Maryland

it

between

Vienna

.

b

C

r*

ing

the

.

Despite serving the industrial
city of Wilmington and the of the
adjacent area, only about 23%

6% Convertible Subordinated Debentures

dividend rate that has been main-

tained since the company

about

P.acker,s' Hence the company de-

Institute of Banking,

vastly improved the prospects for
an
increase in the $3.00 annual

from

connection

Rle RRb most rapidly growing investment.
state. The company's summer airCapitalization

ConB ■. ■"AyHClllgC TV 1119
tributing to this marked degree
fliiuarliemo' Award
of efficiency are a relatively low
HUftSIlldlllg HITdlU
passenger load, no extensive low
SAN
FRANCISCO, Calif.—
density branch line mileage, a standard & Poor's Corporation
long average haul on freight, and bas agajn presented the San Frana large proportion of bridge trafcisc0 stock Exchange with a Merit
fic which traditionally is highly Award in its
publication "Adverlucrative.
These
are
permanent tising in Action," it was announced
considerations.
by the Exchange.

was

the

_

"we wiU continue to increase

10%

of

erty rehabilitation program.

stock

of

lin, Ireland, and of the American

best in

the industry despite a heavy prop-

common

tion

-

has been

as a messenger and

the

Similarly, the company's pre-tax
margin of profit has consistently
been

dual

a

Wilmington and

-

Cooper stated in his recent talk

are

"40,000 kw. from May to August
this year, some of the increase
being accounted for by the food

country. Consislast year it had
among that select

31.6%

to

also

com-

.

the Tidewater Co.'s

1955

Y H ing rapidly, having jumped

in the Bond Investment departperformance was well ahead of ment for 21 years. He now is head
the industry average of 38.7% and of the Investment Service section,
in 1955 the company's ratio will A native of England, he is a gradprobably again fall below 30%. uate of University College in Dubrise

has
1100

pletion last December of a 78,000
kw. unit at tne Edge Moor Plant
in Wilmington, increasing system
capability by over 30%.
New
transmission facilities now provide

.

;antialIy reduced in

investment banking in New York

group of carriers with a
tation ratio below 30%. Even with
the

u

ulvlOAW"

.

years.

the company's future growth, Mr.

of

conditioning load had been

MK

joined Bank of America in 1948
and is assistant head of the Municipal Bonds division,
transporMr. Byrne joined the bank in

the

until

up

electric

t

several
severe?
_

„

peak shgving*
division

The

•,

>

mak-

This

half

first

highly favorable City in 1945 after serving as a
traffic background, Western Pa- Captain of field artillery in Eucific is among the most efficient rope during World War II.
He

been numbered

termina-

generating unit is being built for

$32 million

over

Aside from the

railroads

tu

•

of .importance, larger amounts of

the management expects this rate
of gain to continue.
Delaware is

The thre

.

T

u

,

erowl^raotd??8^ 31638 arC alS° The

gain

by

long-term record
and prospects. In particular, anax-—r----lysts point to the exceptionally
strong growth trend the company
has enjoyed.
Industrial develop-

largely

the

the

ters

road's

is

be

2l/> times those of 1945; gross for

optimism would be well justified

the

(Delmarva)

factors will

to

Favor¬

two new plants—an $18 million portunity to build up the use of
Delaware P. & L. deserves to unit in south Delaware and a spe- appliances.
,.7 he included in the list of "rapid cial $22 million plant adjacent to
Despite further sales of common
'growth utilities."
Recent reve- the new $150 million refinery of stock which may be required by
m

climb-

further

of rubber,
and fibre products. The

upgrade.

?

ing steadily out of its rut.
lysts close to the situation
the

manufacture

paper

the

on

tion of electric

•„

i

i

1Pg xt mailable in emergencies

.

poultry-raising

the

the

Anaare of
the market

♦

-

NaturalS
f!

5„,*

elec"

1952.

expected

are

v'

*

B——;

year's high it had been, prior to
the general break caused by President

i.

^

tvto™

'

1954,

in

earnings

...

_

i

in¬

below

«

heating valueto

nties was announced at tne giowing rapidly.

is

*

well

it

rural, with food-processing and making

followers,
recently
shown

reviving

it

•

the

The

J

nAiflWapfl

Th

Tho

in

$1.75

pianxwixn Propane stor- tioni of.electric plant amortization
plant amortiza
E?ce,SS ugas C?n+ube used as ir\ 2?5?' fhe small charge for gas
fu®l altbougb the company plant being ended in 1962. Gas
SeR ^ ^ a ,profit conversion costs are also expected
11 terr"ptible industrial pro- to be fully amortized by 1958.
use.
standby plant can now
Moreover, annual pension charges
V
y 7
7 K
MOre°ver> ?nnuax pension charges
can
be subst£

beer? greatly improved by

Peninsula

terest, is Western Pacific common.
While

because

.

and

its

to

has

jn

yireinia

an
all
™

Major industries in the Wil™lpgtop area include—in addition
j;0 *
huge duPont chemical enterPrises shipyards and carshops,

big

a

'

.

steel,

of

sun-

been

u

able

stor-

propane

continue)

$2.08

and

Wilmington is growing as a sea- the northern and the southern such as ranges, clothes
•°~ P.ort» has good air transport fa- parts of the property and thus air-conditioners. With
m0tl°?- °£ I f Bank pf .America cilities and is a defense center, improve the reliability of service, mestic use somewhat
OA AT

'

has

named

w» r>

9nft nnn

nues

•One

nZ

the^rea served^

x

T«

,

aK»a»

d

almn<jf
almost

lion 0f tne area servea with elec01
+rjcitv is 462 000
and
that
with

J

*

H

during

months

affording

as

rail

to

nort

the

Thf'f^dded

historv

next

I

,and

in
in

At
tno
ofthp

no

inpi„/ipe

this

Pacific

Bank of America

quietly mentioning the pos¬
sibility that net income for the
full year 1955 may top the $902
turn

good

far

so

Western

k

n™-

service
seivice

hulan
balance

Penlnsuia_so

will not be one of those roads reporting greater net in 1955 than
in 1953 it is estimated that share
results could well top the $9.00
level this year, with further increases anticipated from territorial growth in subsequent periods.

fore

in

has

electric

thh
orthe

nt

$11.63_earned
been a

earnings

while

viae
vide

-

period of declining

a

Some

million

in

recovery

matched the level of the like 1953

standby plant with

^b™

etecfrichv^Tw^

and earnings on the common
(adjusted for the present capitali-

the

orwilminffTon'and S"

the dtv

trends

with

1953

continue

share for the

ASTORIA,

N.

Y.—Cornelis

Vroedt is engaging in
business

from

a

offices

De

securities
at

SHEARS0N, HAMMILL & CO.
CLAYTON SECURITIES CORPORATION

WALSTON & CO.
WARREN W. YORK & CO., INC.

3081

Forty-sixth Street.

i

J^j

\

20

The Commercial and Financial Chronicle

(1408)

Continued

from

.

Thursday, October 6, 1955

.

7's enforcement
against bank

tion

9

page

.

asset acquisitions should
go a long

Bank and Insurance Stocks

toward
meeting
banking problems.

way

"The Antitrust Division

By ARTHUR B. WALLACE*

Judiciary Committee

Looks at Bank

This Week—Insurance Stocks
has

There

reference

been

to

here

that, generally

fact

the

large proportion of the more actively traded fire
insurance stocks showed only fair underwriting
1955; also that a decidedly better per¬
formance was reported in the investment end of the business for
the same group of companies. The latter showing was based not
alone on the increase from investments, but also on the appre¬
ciation in the period in tne companies' assets. Indeed, 1955 may
well be the second most favorable year the industry has ever
considered,
and

a

casualty

Jesuits for the first half of

experienced,
of varying
all

far

so

tne companies' asset positions are concerned.

as

the accompanying

In

table of 26 fire and casualty companies

size, 12 show losses in statutory underwriting; and in
about a dozen cases, those t at did show statutory

except

In all instances of
statutory losses, the equity in the change in the premium reserve
in the half-year acted at least as a partial offset. Only five com¬
underwriting gains registered only small ones.

1935, and to 60.6% in 1954. From
these
figures,
it
seems
clear,
emerges a picture of steadily in¬
creasing bank deposit concentra¬
tion in New York City.
This

It

will

ascribe

net loss on an adjusted underwriting basis.

a

that

recalled

be

portion of the

a

most

services

statistical

insurance

unearned premium reserve for

a

given

period to adjusted underwriting gain or loss.
This portion is
usually 40% for fire lines and a varying amount, usually be¬

But the results for these
were not good for the 1955 first

tween 30%

and 50%, for casualty units.

companies,

chosen at random,
a few instances.

half except in

While

from

Also,

hurricanes

1954

the

in the first half,
1955 first half

in the

were

has been noted, the first half having in it most
when losses are heavier, is customarily the

as

of the winter months

less

And finally, there has been a trend toward
large lines because of the favorable experi¬

profitable half.

lower

in

rates

some

in these categories.

ence

as a

insurable,

not

except

vehicles under

motor

point

out,

substantially
tion.

Chase-Manhat¬
tan-Bronx Trust, Bankers TrustPublic
National,
and
National
City-First National. At least one
<-

of these mergers, we

in¬

are now

vestigating to determine whether
Sherman Act prosecution is indi¬

a

cated.

the

From

standpoint

same

examining

are

the

recently

concluded, "to
in banking, when this

of the

Even

Banking and the First
of Philadelphia.

Bank

though

we

still have

may

the power to move against banks
under Sherman Act Section 1, and
is

stock

acquired

b,y merger,
under Clayton Act Section 7, our
anti-merger efforts are nonethe¬
less cramped by
7's failure

Clayton Act Sec¬
to

acquisitions;
to

sense

tory

It

of Justice

to

duty

makes

tell

to

me

bank

cover

has

it

Depart¬

the

statu¬

against

if the merger is

mergers

little

to encompass

all

bank

accom¬

of

panies will not suffer the losses from these 1955 storms that they

such

rates are now beginning to be more realistic.

age

been

unprofitable

highly

a

condition

one,, a

This line has

that

lead

must

to

The

place where the increase in portfolio values showed
in' liquidating

was

there

increase

an

was

in

up

liquidating value,

of them quite

many

The indications

that, while the multiple-line companies

are

are

likely to be in the black in underwriting this year, the results for
them

not be

may

Dividends

will

as

good

as

some

of the

more

recent

periods.

the meager side for most

probably continue on

FIRST
"■

r_'.•'

•J*!

■1

1 •

■

HALF,

■

;

£905,

....hiipfflfine PpriiIfc,
v/|JCl dvillg XvvoUllo

Prem.
'

r-

•-

..

'■

■

*

«

.

Aetna

*

'•

Agricultural
American

'/'

statutes

this proposed

legislation," he con^
eluded, "the Board favors." Thus,
practically

terested

plied

acquisitions

$114.23

$121.10

0.08

1.26

0.61

1.17

64.38

68.27

0.75

48.21

50.86

however,

1.27

2.64

85.00

83.06

merger statistics but on the much
more

0.84

1.19

1.58

0.65

1.68

6/30/54

6/30/55

2.96

1.42

1.48

1.80

4.06

53.32

59.75

—0.72

_

0.69

2.64

0.26

2.35

127.52

138.56

Legislation Required
r

My

0.36

0.66

0.68

1.31

35.72

38.09

0.77

2.09

3.12

4.29

109.95

116.45

should

—0.82

0.77

2.85

0.31

2.49

144.98

158.44

special

0.05

0.50

2.06

0.37

2.24

85.36

90.54

1.57

0.57

2.52

71.15

73.29

since

Insurance

0.31

2.00

0.78

1.98

64.11

68,79

no

—0.02

0.84

2.23

0.48

2.57

101.06

104.85

—0.12

0.21

1.51

0.12

1.48

72.69

76.57

—0.20

1.40

2.48

0.61

3.07

102.11

111.42

Fire

0.56

0.45

1.44

0.67

1.78

73.45

79.93

Union

—1.61

0.31

1.66

+ 0.03

0.39

69.37

72.37

Merchants

;—
___

_

No.

Amer.

2.57

86.50

88.06

7

0.34

1.38

79.35

83.65

force

—0.14

Standard
Fid.

&

122.71

135.25

2.45

85.65

90.29

1950:

2.05

Alfred

M.

1.17

43.73

45,54

Congress

0.15

1.09

0.67

1.72

39.15

41.57

1.62

2.42

73.17

77.48

2.32

2.17

0.24

3.51

87.87

90.41

0.98

1.89

2.08

0.92

4.03

77.14

80.56

Best

Company.

NATIONAL
of

and

INSURANCE
STOCKS
Laird, Bissell & Meeds
Members American
120 BROADWAY,

Exchange

NEW YORK 5, N. Y.

Telephone: BArclay
Bell

Bankers

7-3500

Teletype—NY 1-1248-49

Dept.)
Specialists in Bank Stocks

(L. A. Glbbs, Manager Trading




to

the

Government in
Kenya Colony and Uganda
Head Office:
26
Bishopsgate,
London, E. C. 2.
West End
(London) Branch:
13, St. James's Square, S. W. 1.
Branches in India,
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Stock Exchange
Stock

BANK

INDIA, LIMITED

Section

7,
prohibitions

land

Protectorate.

this

with

to the House

back¬

Secretary

of
a

the

letter

Committee, supports

"the principle that the
acquisition
of
one
bank
by another * * *
7 Statement

of

man

the

Manhattan

£4,562,500

£2,851,562

Committee

also

The

Treasury, for example, in

Paid-Up

Trusteeships and Executorships

this

support, I note, several
agencies join

me.

before

Reserve Fund
£3,104,687
The Bank conducts
every description of
banking and exchange business.

'Against

Government

Authorized Capital

Capital

reiterated

that laws should apply
equally to
all.
In

of

8

p.

McCloy, Chair¬

the

Judiciary,
84th
Cong.,

of

Chase-

House
1st

of

of

the

courts.

bankruptcy

receivership

In the

of

International

cases.

Shoe

Co.

case

The

v.

Commission

(280

addition

faced

failure,

The

is

there

corpora¬

corporation

"a

rehabilitation

of

so

re¬

mote that it faced the grave

prob¬

ability

v

of

hold

we

business

that

the

failure

*

with

stock
by
a
competitor
(there being no other prospective
purchaser), not with a purpose to
lessen competition, but to facili¬
the

accumulated

business

the purchaser and with

mitigating
*

*

seriously

injurious

bank

having inadequate capital

unsound

assets

where

or

quired bank has

into

restrain

intent

Also,

where

small

town

several

Also

Corporation

v.

Board

Federal Reserve Sys-

206 F' 2d 163 (1953)

view

of

of

prosecuted
of

cause

is
the

Shoe exception.

the

unsound

which

competitive

more
of the banks may well
be in the public interest. The same

principle applies where there are
not
adequate banking facilities.
These various situations

Thus

the consummation

of the transac¬

tion would not be

contrary to the
' V

public interest.
'

"*

*

*

the

committee

interpreted

we

prohibiting

as

described."12

."

cert* denied.

•

bank

,

The

specific problems of mer¬
aside, I finally emphasize that

gers

at the heart of our

the

are

highest

moral

principles.

based

on

a

antitrust laws

intellectual

and

These concepts,

firm

definite

and

na¬

tional

policy, have endured with
variations only in emphasis for'
more than a century.
This policy
is not stationary or static.
within

this

of

core

Instead,

belief' is

an

immutable momentum toward the

goal of free competition.

After

a

century of testing, that policy to¬

day
It

remains

vital

underscores

mental

and

that

rest
of

and

vigorous.

America's

belief that

a

only

the

upon

free

economic

funda¬

dynamic Re¬

a

economy—

freedom—like

political liberty—belongs only
the vigilant.
12 H.

Sess.,

Report

to

84th

1417,

for

Gauging

Cong.,

J

•

,

Smith Eastern

Rep.

For Transamerica
James

A.

Smith

has

been

Transamerica Corporation and its

affiliates, it
has

been

an¬

nounced

by

Frank N. Bel-

Chair¬

grano,
man

and Pres-

ident.

of
involve different fac¬
success,

The

company,
which controls
a

number

of

insur¬

real

ance,

tate and

es¬

man¬

ufacturing
companies,

man¬

survival

ap¬

pointed Eastern Representative for

be¬

likelihood

1st

5-6,

pp.

have not

inadequate

business

course, may

believes

mergers in situations such as those

Depart¬

where,

prospects

future

illus¬

are

trative of the circumstances where

James

A.

has opened

Smith

cor¬

of

an

or

International

failing market, the acquired
dim.

have

banks,

or a

poration's

practices

eventually

may

(the)

agement, obsolete equipment,

seemed

a

an

adverse effect upon the condition
of the banks, the merger of two

Clayton

in

this

mergers

either

in

by

over-banked situation to resort to

commerce

"heading

relevant

ment's

or

ac¬

pro¬

banks

compelled

are

direction" of bankruptcy.11

office
50

New

York

City.

Mr.

Broadway,
was

previously an officer of Bank
America, with headquarters
New York City.

an

at

Smith

of

in

He has been with

tors in different industries. Should

Bank of America and

Section

ica Corporation for 30
year*.

7

be

amended, let
the
Department

assure

you

Justice

would

each

banking

of

bank's

a

This

me

chances

to

pattern

Rep.

(1949);

p.

10 280
11 S.

(1949),

1191,
6.

U.

Rep.
p.

7.

S.

81st

Cong.,

prosper.

of

Sec-

1st

Sess.

r

,

With Samuel B. Franklin
(Special. to The Financial
Chronicle)

LOS

ANGELES, Calif.—Erol R.
Coleman, Eugene Hellinger, Philip
P. Joachim and James Tisano
now

291,

1775,

303

81st

(1930).
Cong.,

1st

Transamer¬

of

pay great heed to
agency's judgment

anticipated

9 H.

the

is

adequate

no

play when the acquired

corporation

the

vision for management succession.

Act."10

come

of

circum¬

acquisition is the most practicable
means of
dealing with a problem

does not substantially lessen
the

possibility
other

probable

or

acquisition

which, from a banking
standpoint, the acquisition of a
bank by another bank
may be de¬
sirable; as, for example, where the

of

the effect

otherwise

consequences

the
are

*

purchase of its

capital

tate

the

depleted and the

resources so

prospect

Court

where the

acquired

with

be

language.

;

to

there

291)," the House Report con¬ public can
tinues, "the Supreme Court went foundation

reasoned that

this

stances in

U.S.

Sess.

18.

Transamerica

1953

J.

Directors
New

York, Hearings
Subcommittee
of
the

Antitrust

of Governors

undertaken

of

of

Representatives,
(1955),

John

Board
Bank

on

by

or

further."9

exact

Report deemed this proviso would

to

equal

ground, I emphasize, my support
for amending Section 7 is based
in the prized American
principle

other

allowed

And, finally, in its

with

stock acquisitions by
banks, in
the same manner as all other cor¬

porations.

of

Trade

its

Likewise
adopting
this
exception, the Senate Committee

and

on

1.27

failing

or

be

not

7

cor¬

a

non-banking

apply

amendment

0.43

BANK

Members New York

not

banks

corporations.

0.12

—0.74

Guaranty—

SOURCE:

5.14

1.08

1.15

Accident

S.

0.13

1.64

Mar

Surety

U.

2.64

0.55
0.29

2.34

Washington&

2.77

1.34
0.71

to

Section

Act does not apply in

Federal

in

pro¬

would

you

bank which otherwise would

a

be

unique

competitor has already

a

would

1.19

1.90

that unamended Section

could

Committee

bankrupt

disposed

within

2.71

Fire

Act's passage
has suggested that its pro¬

the

House

might

urged

0.44

Paul

than 60 years

more

Sherman

in

it

2.27

St.

In the

fit

to

amended

on

competition

—0.62

Frovidence

proposition that anti¬

however,

mean,

It is well settled that the Clayton

*

—1.22

Seaboard

reporting

think

pro¬

7

for

support

states, in part:
"In

of

the

on

Section

that the present bill should not be

enforcement

the

business,8 not specifically
exempted by Congress. Never was

Cas

-

As

I

stock

put it: "The argument that

tion's

Amsterdam

Insurance

legislation,
based not merely on

not
7

molded

tions.

of

Hampshire Fire

Fire

does

be

and

First, I point
out, firmly embedded in Clayton
Act Section 7 is an exception for
mergers involving failing corpora¬

visions would not apply to banks
as well as to all sectors of the na¬

New

Pacific

this

of

slowly in providing
anti-trust treatment
for

the

one

New

Northern

not

assets

facts of banking life.

tion

move

banks.

.1.37

Ins.

was

basic

0.97

—

Apply.to

trust should apply to all business
alike.
Accordingly, I urged we

4.55

—

to

Bank Mergers

support

0.45

Co.

to

0.44

Invest.

Equity Income

This

much

0.15

Insurance

and

changing needs within the nation's
economy,".?

Fund

Falls

conditions

Net

Casualty—

Hanover Fire

National

an

changing

$3.15

Association

Firemen's

emphasized,
large part rep¬
adjustment of our banks

Earns.

Reserve

—1.28

Insur.

Insurance

Fireman's

he

as

"these mergers in

Fed.

Fidelity Phenix

Glens

further,

I recog¬

$0.55

Fidelity & Deposit

Fire

nize

banks."

new

Taxes

Insurance-

Continental

lishment of

in¬

of

alike.

that Section

been

$2.72

Und.

Shippers

Continental

Liquidating Value

bank

to

to sell to

by the estab¬

front

agencies
urges Section 7's standards be ap¬

set

extent

united

Government

the bank population has been off¬
some

carried

Federal merger

or

effectuated

through
purchase of assets and assumption
liabilities."
"The- objective of

poration

to

whether

;

and

mergers

of

condition

of New York, put
impact of these mergers

bank

of

or

it:

Bank

rightly—

within its provisions

out under State

on

tan

$1.47

Stat.

'

•

Insurance
&

Federal

of Directors of the Chase-Manhat¬

—$0.49

•

Insurance

Bankers

realize, of course, as John
McCloy, Chairman of the Board

J.

to

EARNINGS

is

I

resent

companies while volume of business pursues its rise.

merger

Justice, I supported legis¬
designed to plug this loop¬

"The

sizable.

the

ment of

hole.

For all of the stocks here listed

values.

if

accomplished by asset acquisition.
Accordingly, this past session of
Congress, on behalf of the Depart¬
lation

correction via rate increases.

best

authority

types

think

we

consolidations,

a

-the

move

as¬

intended—and

no

cover¬

Governors of the

of

Federal Reserve System indicated,

Trusts and

set

Board

commenting on the proposal to
plug the loophole: "This bill is

National

tion

of the

Philadelphia

in

merger

buying .the-'stock

One other favorable factor is that extended

can be done
it is in other fields of

as

Pennsylvania Company for

proposed

bank,: but that it has

faced last year.

competi¬
important," he
have competition

less

strong

interested
It

amend

so

position.

lessen

to

no

commerce
and
industry."
Sim¬
ilarly, the Chairman of the Fed¬
eral Deposit Insurance Corpora¬
tion, emphasized: "We join with
you in recommending that appro¬
priate legislation on this subject
should be enacted and, as herein¬
after indicated, we heartily en¬
dorse it."
Finally, the Chairman

Chemical-

the

of

by

com¬

is

Exchange,

another

some

It

be

may

mergers

plished

on

acquisition

large

prehensive coverage clauses, so it can be expected that the com¬

are

the

Corn

ment

year's hurricanes probably did materially less damage
result of wind storms?than as a result of floods. Flood hazards

This

I

of

soundly,

if

1955 hurricanes occurred

of the

none

losses

some

results.

figure,

vides

takes into account the recent four

we

panies showed

1954

Mergers"

posal to

should not be permitted if the ef¬
fect

practical

The recent report of the House

Sess.

affiliated

Franklin

&

with

Samuel

Company, 215

Seventh Street.

"

.

are

B

West

Number 5470

182

Volume

.

.

Financial Chronicle

The Commercial and

.

SCHRODER

TRUST

NEW

COMPANY,

Centennial National Bank in 1925,
the Eighth National Bank in

YORK

and
Sept. 30,'55
Total

$69,989,005

62,186,375

banks

12,620,481

*

A

40,568,336

41,800,729

National

Loans

discounts

15,369,891

14,554,247

at

and undi¬
profits

2,575,581

2,519,987

-

&

Surplus
vided

*

if

CHASE

of New

Corn

Exchange

President in

York, has appointed Alfred

Y.

Mr.

Morgan to its Brooklyn advisory
board, it was announced on Sept.
30, by Harold H. Helm, President.
Mr.
Morgan is President of the
White Piock Corp. (parent com¬

and

1936

and

a

Sept. 30,'55

He

1947.

also

is

Total

and

of

Loans

gineers,

Association

the Bar

and

CHEMICAL

CORN

YORK

Sept. 30,'55
Total

June 30,'55

and

Total

due

banks..

from

Govt,

S.

723,899,789

Cash

se¬

553,300,501
1,222,789,664

1,137,352.006

20.062,030

22,973,446

#

%

U.

Govt,

S.

Meta

appointed
Chemical
of

New

on

Oct. 5

it

York,

735,634,307

784,031,184

1,437,173,308

1,408,320,980

107,147,824

104,867,944

Total

and

U.

S.

OF

NEW

hold'gs

758,495.911

823.837,655

discts.

992,177,250

919.756,686

profits

45.281.587

$

43",361,846

due

Govt,

S.

:

.

Cash

&

Undivid.

57.475,822

profits
$

H*

v

CITY BANK FARMERS TRUST COMPANY,
-

,

-\

-

.

NEW YORK.

■

•-

V-

Total

'•

•

196,211,003

187,735,376

DepositsCash

from

due

48,498,519

32,360,995

13,393.030

12,892,911

holdings

79,689,289

3,156,405

Undivided

profits—
*

■>

12,321,580

12,079,526
#

■

TRUST COMPANY, NEW

Loans

surplus..—

14,445,284

Govt,

622.057,577

572,550,905
437.921,397

Deposits

1,429,880,789

1,341,795,409

46,040,092

45,008,491

*

38,245,489
50,063.433

discounts

57,938,505

58,972,821

profits—

&

The election of Haldan E.

1,760,331

1,561,319

Marine

The

of

Company

announced
will

bank

the

Mr. Con¬

Assistant Vicethe
Irving
Trust

an

of

President

of
He

Office.

Main

the

Company.

June 30/55

1,564,718,837

1.561,462,333

1,388,553,094 1,386,031,314

Deposits
QPH

poch

S.

403,408,164

376^77,883

hold'gs

318,888,642

342,969,009

disct.

723.410,121

709.720,418

profits

21,772,660

20,831,714

banks—

from
U.

duo

Govt,

curity
Loans

&

Undivid.

se-

if

YORK TRUST CO.,

NEW

THE

if

if

NEW YORK

Sept. 30/55 June 30/55
COMPANY

TRUST

MIDLAND

MARINE

THE

NEW

OF

YORK

Total

504.585,726

resources

$

504,960,095

455,440,310 457,614,958

Deposits
banks

129,016,994

151,495,993

114,425,928

——

discounts

&

discounts 364.525,786 362,259,968

&

Loans

profits—

8,085,714

if

BANK

THE

7,523,232

if

if

NEW

OF

YORK

7,789,060

7,821.460
*

190,524.846 193,842,760

—_

...

Sept. 30/55 June 30/55

£

$

L.

L.

President

Colbert,

of

Total

Chrysler
ert

G.

Corporation,

and

Rob¬

Page, President of Phelps

Dodge

Corporation,

have

Cash

and

Bank

trustees

Hanover

on

been

since

Oct.

Mr.

5.

President

1950

and

1949.

He

1933

when

dent

attorney

a

joined

of

Undivided

J.

became

and

a

both

in

a

Vice-President




He

of

was

the

6,525,743

6,295,558

*

if

SCHRODER

NEW

41,185,652

1,728,672

and

vania

Banking
of

elected

vided

&

—

discounts

and

undi-

profits

the

at

Pennsyl¬
Com¬

Trust

and

Pa.,

were

organization meet¬

ing of the board of directors held
on
Oct. 3 shortly after the bank

45,795.451

.

43,300,331

22,515,121 1 24,928,948
o'.

Y,o

5,001,M1

•

System.

the

by

of

operated

continuing

announced

Becker, Vice-Presi¬

Raymond

H.

dent, has

been

its

bank

Sept. 29 that

on

in charge

placed

and

bankers

division

F.

William

L.

Day

elected President.
William
B.
Walker,
who was
President of First National, was
Kelly

was

64,631,734

17,819,673

15,847,053

2,338,272

—

2,299,911

reserves

of

from

absence

has

the

bank

of Secretary Dulles

An increase in the

Becker

$450,000.
*

*

D.

H»

-

Assistant

Perry Hacker,

at San Fran¬

of California, N. A.,

will
than

40

Credit Depart

Hacker's duties as

will

Manager

Cashier.

Credit

be

assumes

S. Creighton, Assist¬

by William

Mr.
of

President

Mr.

President.

McAllister,

ment

service with

years

it is announced by El¬

the bank,
liott

30, after

Sept.

retire

the

of The Bank

Department

Credit

of

Manager

and

Cashier

During his banking
Hacker

served

Banking

Association

Managers

e-P

re s

i d

e n

t

s

were

Northern

California Chapter, etc.

has

been

1922.

In

grain,

the

his 20 years

packing

meat

industries.

with

lending officer

Mr.

NEW

Becker

Mr.

Creighton was elected

Assist¬

ant Cashier of The

Bank of Cali¬

1953.

Prior to join¬

fornia Dec. 8,

ing the bank in 1952, he was

with

Chase National Bank of

New

and

the

has

York.

ISSUE

elected, each of whom had served

237,883 Shares

that

capacity with the merged
banks. They are William F. Kriebel, Harold W. Scott, Albert W.
Whittlesey and Robert A. Wilson,
Pennsylvania Company, and
Philip F. Coleman and Charles J.
Gable, Jr., First National.
All
other officers of the merged banks
were
elected to the same posts
in

held

had

they

titles

in

of

were

their

changed

same

two

appeared in

held

our

with

1863,

BUSINESS:

incorporated
the real
selling

be obtained

VICKERS BROTHERS

institutions

Investment Securities

on

52 Wall

Street, New York 5, N.

Boston: 80 Federal Street

the first charter

During its long

history, the bank was involved in

important mergers
Bank

in

—

1910,

Y.

Baltimore: 512 Keyser

Bldg.

July
Please

send

Company.

signed by President Lincoln

Merchants

Company was

Copies of the Offering Circular may
from the undersigned

issue of Sept. 22,

granted under the National Bank

three

Mortgage

proposed merger

Philadelphia

Feb. 28, 1863.

Gibraltar

October 30,

The

be noted began op¬

under

Share

1953, for the purpose of engaging in
estate
mortgage brokerage business, buying and
mortgages, and servicing such mortgages.

on

The merged First Na¬

1182.

in

the

Price: $1.00 per

by

Company.

banking

may

11,

Class B Common Stock
(One Dollar Par Value, Non-Voting)

to

position

Pennsylvania

the

page

(A Florida Corporation)

although

before,
formerly

conform
to those
used
by The Pennsyl¬
vania Company for the same type
of services. All employees of the
merged banks will be continued

tional

First

GIBRALTAR MORTGAGE COMPANY

executives of The First Na¬

some

with
the

of

Central California,

and

his

of the consolidated institution. Six
c

as

Chapter,

Northern

of experience as a

the

to

$300,000

$750,000 was effected on Sept. 16
as a result of a stock dividend of

Deputy Undersecre¬

as

since

capital of the
of Bill¬

from

Mont.,

ings,

Bank

National

Midland

ap¬

recommended

pointment

*

*

career

food

31,557,411

55,730,111

discounts

&

ant

to

.

27,915,340

U. S. Govt, security

Vice-President

Executive

elected

104,124,510 114,556,118
from

honlrQ

Mr. Prochnow has been granted a

bank

108,712,782 119,106.028

resources

Deposits
Cash and due

succeeding Herbert V. Prochnow.

Mr.

named Chairman and William

Total

*

HI

NATIONAL BANK OF SALT
LAKE CITY, UTAH
June 30/55
Dec. 31/54
$
■
$

FIRST

more

*

The First National Bank of Chi¬
cago

of

held.

shares

*

The

National Bank of Philadelphia be¬

effective.

The increase was
brought about by a stock dividend
of $500,000 and the sale of $500,000- additional
stock
(par $10),
offered
to
stockholders on the
basis of one new share for each

cisco,
*

$2,000,000

Sept. 9, from

of

as

$3,000,000.

nonmem-

tary of State for Economic Affairs.

•

4,868,936

Com¬

Bank

Banking and Trusts and The First

on

.

branches

who

11,236,659
.

its

bank.

at the request

Act,

*

the

bank will be

metropolitan area.
The
came into existence on
Sept. 30 when the merger between
The * Pennsylvania Company
for

came

Denver, Colo.,

Com¬

under

with

Reserve

company

72,810,395

,

19,

insured

an

leave

$

'

of

Savings

opened its 27 offices in the Phila¬

110,160,278

security

holdings
Loans

First

Philadelphia,

erations

YORK

12,480,085

S. Govt,

if

ii!

tional, it

due from

banks
U.

s|l

.Officers of The

74,432,737

—

title

and

latter

as

51,341,946

$

Deposits

and

the

of

-the

41,199,606

1,71 *>.145

109.022,886

resources

Sept.

Bank of
increased its capi¬
National

Denver

The

announce

Bank

*

BANKING

Sept. 30/55 June 30/55
Total

Surplus

of

214,146.188

CORPORATION,

resi¬

member

the operations committee.
named

HENRY

Chrysler

company

218,301,690

profits—
if

Cash

he

110,545,119 110,015,280
discounts

&

"

——_

Reference to the
159,937,017 133,878,429

an¬

since

484,484,246

462,361,654 429,263,236

from

holdings

Colbert

Director

the

due

banks

been

cf New York, the bank

nounced

has

The

of

—

U. S. Govt, security

Loans

elected

—

$

517.786,006

resources

Deposits

of

'

* J

.52,841,675

pany

System

former head office and branch of

13,821,392

discounts

&

various
187,098,911 202,130,924

U. S. Govt, security

241,263,952 230,918,949

profits—
*

from

banks

Undivided

holdings
Loans

due

110,201,019

U.. S. Govt. security

Undivided

687,053.218 206,929,409

and

holdings

and due from

Cash

781,191,535 800,103,832

resources

Deposits
Cash

$

Total

$

$

Sept. 30/55 June 30/55

security

Senior V i
resources-

if

if

sj:

YORK

Sept. 30/55
Total

the

with

division

banking

at

formerly

was

Blaine,

G.

James

associated

be

commercial

NEW

COMPANY,

TRUST

York has been

New

by

*

IRVING

Trust

Midland

Chairman of the Board.
nor

Con¬

Assistant Vice-President

12,273,275

'

*

*

*

holdings

Union

The enlarged capi¬
19.

$3,000,000.

tal became effective Sept.

Undivided profits &

/

——

Govt,

S.

ber

118,153,268

119,974,863

to

Loans
*

as

*

131,024,379

132,952,977

—

of

dated

June 30/55

due from

and

banks
U.

_;

Y.

30/55

$<«••'••$

<

«

resources—

Cash
;

V

-

N.

PLAINS,

close

Ohio,

WESTCHESTER,

:Sept.

.

Total

was

holdings
Loans

*

36,218,232
45,587,842

S. Govt, security

U.

Undivided

of

v

$

161,959,460

135,724,883 137,311,222

—

banks

530,102,952

discts.

as an

June 30/55

$

159,041,477

resources

Cash and due from

se¬

profits

&

WHITE
-

the

at

Company of Cleveland,
a
State member, consoli¬

merce

delphia

"""

,

OF NEW YORK

Sept. 30/55
Total

hold'gs

curity
Undivid.

nor

si:

*

S(S

2,644,380,603

banks—

from

Loans

59,041.445

14,465,284

2,236,493,790 2,349,905,896
due

and

S.

65.059.610

&

GRACE NATIONAL BANK

$

Deposits

U.

discounts

holdings

YORK

2.585.410,304

resources-

48,295,413

49,643,542

.,

June 30/55

$

Cash

44,952,537

banks

£

Sept. 30/55
Total

45,219,733

from

U. S. Govt, security

Capital
BANKERS

222,280,679
189,222,695

due

the

consolidation

<;

Federal Reserve
that

the First

30.

Sj!

OF

$500,000 has
served to increase the capital of
the
Barnett
National
Bank
of
Jacksonville, Fia., from $2,500,000

Savings

of

of Governors of the

Berea, Ohio,
BANK

-

191,553,768

and

of

mercial

YORK

225,002,701

resources—

Sept.

The Board

'

$

86,045,779

4,367,796

-

——

discounts

&

&

Sept. 30/55 June 30/55

Cash

U. S. Govt, security
Loans

NEW

Deposits

effective

charter

SR

The

*

County Trust Co.

and

e
!j!

#

*

the

Savings Bank

to

15. :

Sept.

four

of

made

and

Lynchburg.

business

on Oct. 4.
For
prior to his present as¬
sociation, Mr. Sposato was with

holdings

HARRIMAN

Trust

*

•Undivided .'profit-

*

♦

BROTHERS*

COMPANY,

Total

*

is

111.,

Chicago,

A stock dividend of

Lynchburg, Va., and the

under

became

1931, and Pres¬

of service

Loahs

108,419,882 128,833,278

_•

and

banks

of

a

years

Deposits

profUs—

of

National

Sposato, Vice-Presi¬

The

of

years

151,196,427 189.910,960

146.279,670 166,926,172

resources

became

of

Mercantile

the

of

enlarged
$2,000,000 as

tive

consolidation of the First National

White Plains, N. Y., completed 35

-

*

$

He

—

❖

Charles G.

NATIONAL

327,634,577

BROWN

■

Sauter

1934.

830,322,246

___

'

,

-;

Sept. 3f,'55 June 30/55

*

*

Announcement

June30,'55

"s

-

ident in

security

Undivided

was

C.

Bank

Norristown, Pa., from $530,600 to
$541,200, effective Sept. 15/

the title

❖

discounts 353,376,647

&

in

Peoples National

Trust

$

______

holdings.
Loans

the

Bank

from

due

U. S. Govt,

56,078,400

'

and

of

Bank

—H 702,369,040 735,581,016

-C.

banks

.

hold'gs 1,513,595,324 1,719,056,990
discts. 2,792,332,080 2,641,050,349

curity
Loans

1,629,936,191
;
.
:

1,457,015,975

se-

resulted

The First National Bank of Mount

796,321,245

resources..—

Deposits

F.

if

of

Bank

$2,200,000,
from
a result of a
stock
dividend
of
$200,000, the
new capital having become effec¬

tal
«

$10,600 has
increasing the capital

Of¬

he

a

*

been

has

to

Mr. Hogan

YORK

$

Total

the

of

Trust

a

1926

to

had

$176,013.

Vernon.'.

COMPANY,

Sept. 30,'55

„

banks—

from

&,

6,855,988,459

6,014,718,380 6,174,785,823

and

MORGAN

P.

Na¬

undivided profits of not less

Lynchburg

H:

INCORPORATED, NEW

$

'

6.703,x26,941

resources.

Deposits

U:

J.

became
1920

consolidation

if

resigned in 1926
to join The Greater New York
Savings
Bank
as
an
Assistant

11

the

effective

-A stock dividend of

died

se¬

*

of

the

at

firm.

dent

*

June 30,'55

President

2.890,845,800

785,157,759

&

he

From

the

Savings

Y„

N.

a

»:<

791,030,758

Govt,

curity

YORK

Sept. 30,'55

,

which

$

due

BANK

CITY

NATIONAL

FIRST

Cash

June 30,'55

banks..

Loans

York

brief illness.
He
old.
Mr. Hogan
started his banking career with
the Title Guaranty & Trust Co.,

2,667,938,507 2,630,549,643

from

of

than

President of

years

Vice-President in

2,925,574,956

resources-

Deposits
Cash

New

Vice-President.

COMPANY,

YORK

NEW

Undivid.

Total

TRUST

MANUFACTURERS

$

the President of the bank.

THE

*

Sept. 30,'55

Taylor has been qctive
in women's business and profes¬
sional organizations. She has been
serving as Secretarial Assistant
to

*

*

by the Board of Direc¬

Miss

tors.

profits

announced

was

68,382,004

Brooklyn,

bank

Agency, real estate and insurance

se¬

F.

Taylor has been I
Assistant Secretary of
Corn
Exchange
Bank

603,084,329

discts.

&

Undivid.

Miss

627,019,873

hold'gs

curity
Loans

*

due

1,612,671,157
3,106,360,183

70

of

title

under

capital stock of $475,000 in shares
of 47,500 of common stock, par
$10 each; surplus of $1,026,000,

,

72,294.079

in

ficer.

banks..

from

658,519,235

discts.

profits

&

Undivid.

and

/

3,230,918,343

Greater

The

2,998,587,697 3,002,716,477

...

date

1,808,126,521

•

,

and

2,533,180,428 2,521,874,341

resources.

Deposits

817,338,631

hold'gs

curity
Loans

June 30,'55

2,634.063,699 2,755,473,132

Deposits

U.

Sept. 30,'55

.

Bernard F. Hogan,

was

$

g

?;

,

discts.

Sept. 26 after

COMPANY,

YORK

NEW

2,904,650,566 3,009,760,216

resources.

Cash

TRUST

GUARANTY

•
,

#

*

OF

BANK

EXCHANGE

NEW

"

profits

&

Bank

of New York City.

1,700,348,708

"

se-

hold'gs 1,239,990,658

Undivid.

Mining and Metallurgical En¬

Effected

and

at

enlarged

due

*

capital

National

common

6,712,185,361

banks—

curity

member of the Min¬

a

ing and Metallurgical Society of
America, the American Institute

$25,000.

charter

Bank

with

tional Bank of Chambersburg the

Govt,

S.

the

$

State

Pa.,

——6,353,830,125

from
U.

Bigelow-Sanford Carpet Com¬

pany,

located in Brooklyn, N. Y.)
as
well as of White Rock Corp.
of Boston, White -Rock Corp. of
Chicago and of Miami.
pany

June 30,'55

Loudon

of

7,421,809,650

unci

Casii

Chambersburg,

7,060,591,615

resources.

Deposits

Director

a

of

Loudon,

stock
•

been President
Director of Phelps Dodge
has

Fort

Fort

BANK,

YORK

1946.

Page

since

of

in

Division

Dodge

Bank

Bank

throughout

extensively

country.

The

Sept. 17, united the

Chambersburg, Pa., with com¬
capital stock of $450,000, and

the

MANHATTAN

NEW

*

mon

«

-

THE

*

consolidation which occurred

under date of

U. S. Govt, security

holdings

the

%

63,084,596

12,136,733

________

travelled

1930.

due from

and

Cash

June 30,'55

$69,000,737

resources

Deposits

Chemical

21

(1409)

Name

Address
Telephone

me

Offering Circular relating to

Gibraltar Mortgage

22

(1410)

The Commercial and Financial Chronicle

The
Today
dent

my

this

of

tour of duty
Association

has been

a

as

By HOMER J. LIVINGSTON*

experience—one that I shall always
remember. My
act,

be¬

Mr.

leave and

handing

t-h

distinguished

office

of

.

of

Bankers

can

Homer

J.

Livingston

wheat land of the vast
and the
picturesque

of

n o w

of

one

extensive

hurried

back

a

it

over

As I think

one.

it is

now,

kind

a

of

kaleidoscope of trains and tickets,
planes and porters, buses and bellhops.
In

I

thousands of

miles of travel,
crisscrossed
this
great,

have

country
New

many

times.

England

autumn
enf+

hills,

color;

warm
'

I recall

the

air
a r

ablaze

touch
thp
tne

nf
of

the

Smith-

South,

the
thp

the

.mighty mountains of the West; the
blue Pacific and the Golden
.

the old
I

tion,

before the First

se

sist

Annual

fond

General

Session

of

Convention,
Chi-

The

First National

Bank

of

Chicago.

committees and

on

individual

your

memories

also

of

the work

of

commis-

made

ways,

contributions

the

American

to

Bank-

should not be haphazard. It should

look back
that

Fourth, the task of training men
for .executive leadership and the
whole problem of successor man-

the nation

in

had

every

some

perhaps the most urgent problem

it unusual opportunities.

in

not assume that the future will be

The

American

membership welcome the opportunity to render unselfish serv-

pitable,

and

ice.

grateful

to

I

shall

you

for

always
many

be

kind-

nesses.

I

the

the

of

course

last

two

I have frequently spoken
common
theme—a thought

should

be

remiss

if

I

did

not

a

on

to

is

agement

be

bank

strong

In
years

a responsibility
that
overemphasized. It is

management

today.
A
continuing Executive

and

staff in

bank does not come by
It does not just happen.
It is achieved by intelligent forea

chance.

despite these problem^, the bank¬
ing system has had a dynamic
growth which has given those in

different.

As

rightly

may

ahead

years

g r e at e r

,

,

assisted me tremendischarging these re-

*n

sponsibilities. I
+n fbpm

am

deeply indebted

thpn

to them Then thorp
there
ness,

ic mrc

is

patience,

and

Mrs. t hzinc*
Living-

*•»«<>»*- this only by bringing sound and
understand- superior management to his own
bank.
In no other way can he

of

Investment Bonds and Stocks

his

serve

depositors,

his

and

his

stockholders.

competence

day-to-day

in

the

operation

practical,

of

bank.

a

trained

control..

^

These, briefly, are some of the
hard, practical responsibilities in
daily management of a bank,

the

To overlook them is to fail to give

meet

ties?

rw

community good banking leadership.
;;
Bankers' Need of Knowledge of

the

is your bank doing
today?
What are your
for the next five or ten
it

plans

;

These

consider

first

responsibilities

some

the

of

banker

discharge each day if he is
give his community the financial leadership it has the
right to
expect.
Then we shall also conthe

broader

obligations

of

farsighted banking leadership.
Perhaps the first function of the
banker
of the

to

his

after

insuring the safety
depositors' funds entrusted

stewardship is the function
4

H

•

•

a(*equate and conto business, agricul-

p
f

th?1
Thls

mnnitv

'

v.

Bonds, Preferred and Common Stocks of Industrial,

S

C?mn
at all

responsibility

^ requires experience, comn_s^ns® a^d good judgment,
J' f' in this period of high
•h
c f y. y' the responsibility of extending credit
.

,

1

Utility and Railroad Corporations

good

It

is

and

thing to

one

to the basic

free

markets.

lip service

pay

principles of

requires

are

now

at

Loan figall-time peak.

an

Under such conditions the
banker
must exercise
restraint and exi

traordinary vigilance to do his
part in keeping the
economy
sound

and well-balanced.
Now is
the time for him to
survey hi|s loan
portfolio
and« his
requests
for

Acceptances

Securities of the International Bank for

,

Foreign Dollar Bonds

•

i
i

■

'■

*

.

Underwriter

•

•

Distributor

Dealer

•

credit with' great care.
Second, the administration

our

eco-

Third,

of

this account.

another

Philadelphia




Pittsburgh

Cleveland

,

Chicago

San Francisco

sponsibility
strengthen
order

during

and

you

your

the

future

of

hands.

My

president of

your

vided

with

me

banking is in
of duty as

tour

Association
the

pro¬

unusual

op¬

role

the basis for my confidence. Bank¬

in

the

and

ence,

economy,
our

our

training

experi-

not

only
qualify us for this leadership, but
make us responsible for it. When
fail in such

we

in

our

leadership, we fail
stewardship.

economic

We need also to have

a

thorough

knowledge of the operation of the
entire Federal Reserve System,

fiscal

government
debt

management.

day

policies,

and

can

ers

are

aware

bilities, and

of

their

they

responsi¬

striving to
discharge them competently.
are

Never before have
concentrated

had such

we

attention

given

to

banking problems by thousands of
bankers

in

study

confer¬

groups,

schools, and discussions of

ences,

all

kinds.

The

No banker to-

price

and I will have

you

his

to pay in the years ahead for still

his

properly discharge
complete responsibility to

greater

achievements

by

in¬

our

shareholders, his customers, and
b}s community without this broad

dividual banks will be intelligent,
hard work. But the rewards will

knowledge

be

*

-

,'

•

large.

:

~

....

I

+uThe ^nk/r .™ust .llke™lse

thoroughly familiar with the van°,us economic indicators which
sbow. the trends of business. This
requires that he constantly study
the businesses of his customers so
1S w

am

meet

with

confident

that

shall

we

the

challenge of the future
banking leadership that

possesses intelligence; vision; in¬
dustry; and, above all, character.

informed.

Elected Directors

If he is competent in the broad¬
est sense,
he also will have an

a

to

our

be

the

need

re-

to

capital accounts in

able

periods

is

Finally, the banker needs to be

«

important

*

Boston

by

Reuben

Thorson, General Part¬

of Paine,

ner

Webber, Jackson &

bond

pervision

New York

of

now

courageously to stand for these
principles in our communities. Our

It is another matter

intelligent understanding of inportfolio is also a ternational banking, finance, and
daily responsibility of significant economics.
This will include a
proportions.
Almost one-half of knowledge of the fiscal and ecothe assets of our banks are in- nomic policies of the
major navested in bonds, and over one- tions of the world. In a world in
fourth of our gross income
flows which distances are shrinking
from
our
bond 'investment
acdaily, every major economic fac¬
counts. We need
clearly to recog- tor abroad has its effect on the
nize the
necessity for careful su- American economy.
bank's

Reconstruction and Development

some

require

portunity to appraise at first hand
the strength of our banking lead¬
ership today. This experience is

nomic system.

greater judgment.

even
ures

Company Stocks

problems that

are

Important as our responsibilities
and formidable as our task is
now,
I am confident—confident

that

pr0perty

-

State, Municipal and Revenue Securities

problems

are,

va^e

to

and its Instrumentalities

not

are

else will have to worry about.

one

These

the responsibility of understanding fully our system of pri-

„

-day Responsibilities

us

sider

we

have
■»

_

must

Securities of the United States Government

staff ready to
increased responsibili¬

years?

.

illustrate,

j

Let

'

in¬

What

about

decisions

Day-t

■'

vastly

and

associates.

operates.

.

the

shall have

we

a

leadership today also requiresEconomics
comprehensive understanding of
But over and above these oblithe economic
system in which the gations there are other broad rebanking system of this country sponsibilities.
To

<•

we

in

executive

But

Canadian Bonds

fact,

that

opportunities

•

your

a

Bankers'

matter of

a

assume

can¬

sight, and in no other way.
creased responsibilities.
Fifth, it is a major responsibilLook ahead only ten or twenty
ity of the management and the
years. With our economy growing
directors to provide comprehen- at
the average rate of the
past
single responsibility of the banker sive and competent accounting and
fifty years, what will your de¬
which
rises
above
every
other auditing controls.
Banking hisposits be in ten years? Your loans?
banking obligation is the responsi- tory clearly shows the need for
Your capital account?
Will your
bility to safeguard the funds en- strict audit control and supervi¬
physical facilities be adequate?
trusted to him by his depositors, sion within every bank. There is
Will you have
acompetently
j judgment/a banke; can do no g0od excuse for a lack of such

community

Bank and Insurance

We

publicly acknowledge the great which I have devoted considerable
helpfulness of many persons. All time — namely the responsibility
the members of the a.B.A. staff for leadership
by the American
rendered
snlendid
nervine
banker in a free society.
The

Leadership in banking unquestionably requires a high degree

Public

the years, we find
single decade since
was founded, we have
major problems.
But

over

be planned far in advance.

cannot

Association.

ers

better

-

Future

banking, as in most human
dustry in our communities. The experience, the past tends to be
growth of our capital accounts a guide for the future. When we

its

insS:" mV.st0n' whose
of

The Past—A Guide to the

Bankers Association remains great
because thousands of bankers in

Gatcy

Hilton

have

All of them—all of you—
have been most gracious and hos-

have

a.b.a.

inade¬

own

friends.

.

Ballroom, The Conrad

rolling ing have been so helpful.
My
Northwest; thanks go also to all of you who

Southwest.

have

of his

sense

making new friends and of enjoying the pleasure of renewing acquaintances and visiting with old

sd(^dofr"he°American ^^Banklrs^Asiocia" ^ous*y
Grand

and

deserts, and lonely cattle lands of sions, and in various

with

of

slopes

mesas, sunken

travel, and therefore it

has been

fir-clad

some

quacy.

In

afforded

e

has been

past year

*

the

addressing this Convention.
The

*

'

opportu-

nity
m

these responsibilities without hav¬

ing

the challenge to bank-

says

for

part of every¬

a

leadership. No matter how well
he
is
qualified,
no
thoughtful
banker can face the
challenge of

ing leadership will be met.

;

terms

The banker today requires not
only the technical ability to run a
sound bank, but the broad knowl¬
edge to give his community in¬
telligent financial and economic

only sound

not

Ameri-

Association, is
the

They are
day banking.

leadership in banking requires

that the future of banking is in
good hands, and

President

the

out that

merely

stand.

day-to-day responsibilities, along with their responsibilities of understanding
fully our system of private property and free markets. Expresses confidence

last

the

Livingston points

supply.

money

not

are

the classroom economist to under¬

day-to-day operation of a bank, but also a comprehensive under¬
standing of the economic system in which banking operates. Lists bankers'

successor—the

the

Bankers Association

and practical

e

gavel to my

privilege,
if you will, of

the American

President, First National Bank, Chicago

taking

your

nation's

These

Retiring President of

wonderful, stimulating

final

Thursday, October 6, 1955

.

the

in

It

fore

.

Responsibilities of Leadership

Presi¬

ends.

.

to

of

absorb

stress,

losses

and

to

thoroughly

aware

of the far reach-

Curtis, and George P. Kent, Gen¬
eral

Partner

of

E.

F.

Hutton

have been elected

Company,

rectors of Growth

&

Di¬

Industry Shares,

Inc., bringing the number on the
Board to 11.

O.

Robert
Executive

Associates,

ing economic and social implica-

has

tions of his business.

Willmore,

with

Account

Harland

Investment
elected

Allen

Manager,

retary.

know

the

He needs to

part savings

free enterprise society.

play in

provide credit in adequate amounts

to understand the impact
upon

for the growth of business
and in-

economy

when

we

have

the

changes

Assistant

Sec¬

Beginning Oct. 3, the pricing of

a

He needs

been

G.

I.

S.

shares

will

reflect

the

three-for-one split effective Sept.

30,

1855.

Volume

182

Number 5470

.

.

.

The Commercial and Financial Chronicle

Only STEEL

can

do so many jobs so well

The Bambino Was Here. This

is Yankee Stadium,

home park of the late Bahe Ruth, the
"King of
Swat." The patrons are protected from misthrows
and

foul

balls

by

a

USS Welded Wire Fabric

Screen made from thin, strong wire that does not

impair the view. USS Tiger Brand Wire Rope
holds the fabric up.
r
* V

m

M&m

i

i &m

'A

iiiiitf

It Goes In There.
up

into

a

This junkyard

cars or one

truck at

tight bale of

two

scrap

And Comes Out Here.
cubic

yard of steel

baling

time, and

steel.-

The

scrap.

a

cars

'■■■/*.

are

gobbles

press

squeezes

now

them

-

less than

It's the largest such

press

a

in

the world, and uses 197 tons of USS Steel Plates.

They Pamper Jet Engines.
gines

are

Military aircraft en¬
shipped and stored all over the world in

USS Cor-Ten Steel containers. This steel is 50%

stronger than ordinary steel, and it has 4 to 6
times the corrosion resistance. The containers

kept under

pressure,

hydrated to prevent moisture and corrosion.
-( /M *

r

I

This trade-mark is your guide to quality steel
SEE The




on any

by

United

newspaper

States

Steel.

Consult

for time and station.

product mentioned in this advertisement, write United States Steel, 525 William Penn Place,

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For further information

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are

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5-2037C

24

The Commercial and Financial Chronicle

(1412)
v

A
have

I

Strong National Economy—Foundation for National Security

been

asked

serious

a

from
twelve

if

look

the
of

Former Consultant

has been its

nation¬

of

o n

sen

out

seem

without

and

either pontifical

sounding
political. Any-

or

I'm going to try.

way,

The

a

strong

can

confidence

outstanding achievement of

economy,

strong

statements

for

sideration.

In the

had

we

the

States

concept

must

defensive

posture

time

of

same

portance,

a

does seem

that

this

truism:

a

times

and

and,

115

con¬

weeks

Administration,

Council meetings

Planning Board

and

meetings,

as

compared to 90 Cabinet sessions in
the

period.

same

Several hundred

national security policy statements

—broad,

specific,

large,

small—

were processed through the
Board,
billion over the staggering figures
already in the fiscal 1953 budget considered by the Council, and
recommended to the President.
managements and the skills of and to be required by then-curAfter I became Planning Board
our laboring men and women;
rent programs performable in later
we
introduced into
the inventive genius of our years. But another way was taken, Chairman,
these national security policy
scientists; our vast transporstatements an innovation. We
tation system—all these, taken
*"e Transition
together, make up a potential
That was the way of keeping wanted them to contain, where
that overshadows the capabil- alive and vigorous the priceless possible, not only the necessary
ities of the Communist regime, principles of free, competitive en- factual presentation and the policy
More
than
the
atom
bomb, terprise and initiative, and—more recommendations based thereon,
this preeminent industrial than that—of keeping them grow- but also a financial appendix in
productive ability of the Uni- ing and of developing new things sufficient detail to ,-j indicate the
ted States is the bulwark of and better methods of industrial
magnitude of the policy recom¬

a

at

im-

strong economy, jlf it
truism, I can say only
change. There was a

economy plays in the
the free world did not

115

Council's
first

in

quantities,
because of the capacity of our

that

have

equal

"our last best

as

the

of the Eisenhower

from crash and crisis."

away

fabricate

day when the part that America's

this Administration in the field of

expanding

an

/

hope that this concept does not

ject I think I the United

view, and I bespeak that view withviolating any Presidential

lieve I

?■■

v>
I

/

On this subCutler

informed

Planning Board of the Na¬
Security Council. This is
the body which prepares all policy
tional

Reveals work of the Planning Board of the National

hope to steer

Administra-

an

the maintenance of

on

Security Council, and extols President Eisenhower's qualities

the

\

Council asserts that the National

334

hower

tion?

the National Security

ian growth and progress.

cant contribut i

earlier of that part of
duties as Special Assistant
which comprised being Chairman

enough to support, not only the demands of military defense, but also of civil¬

security the

E i

to

emphasis

from

most signifi¬

ei

spoke

of the

I

viewpoint

our

al

Planning for the National Security

of Boston

Administration's outstanding achievement in the field of our national security

back

seems

National Bank

First

The

of

in,

didn't.

we

Trust Company, Boston

Colony

Old

I

hour

as

Directors,

my

House

day, what

of

Chairman, Trust Committee

my
-

White

wouldn't be any world to live

By ROBERT CUTLER*

Chairman, Board

Now that six months have passed
since I retired

Robert

Thursday, October 6, 1955

.

.

question, which I would like to
try to answer. The question is this:

have

..

survival of

mass

seem quite
security policy has as well understood,
change at the highest level
i do not mean that the great pol;the emphasis and direction of that
icy papers of earlier years did not
policy.
This Administration has re?er to the desirability of a
peace in the world.
accomplishment. That was the way mended in terms of annual ex¬
strong
"To the extent that we weaken of a great transition: the moving
positively recognized, and put into American economy. Of
penditure for the current, and fu¬
course,
practice, a different concept. This
or dissipate the enormous poof people from working directly ture years. Was it a minnow, or
they did. But I am speaking not
different concept is: for the safety
a
tential
of
industrial
fish, or a whale? What would
0f references, but of emphasis and
power or indirectly for the government
and survival of the Republic in
that inheres in our American into jobs producing goods for the the
policy
cost
to
implement?
direction.
Most people are glad
the doubtful years that lie
ahead, to declare that they are against
system,
we
invite
despotic general public. Such a great tran- These financial appendices were
.'the possession of military might
rulers to take the despot's last sition takes time; it must be grad- not binding; but they, and their
sin> that they are members of a
ialone is not enough; of equal imlong chance and again plunge ual, if it is to be prudent. During enormously difficult preparation,
church, that they support the local
portance is the maintenance of
the world into war."
that great transition, Federal were often illuminating. It seemed
community fund. But it may have
an
expanding economy, strong been
to me
(just a kindly, old trustThese ^viuw., and ..... seem, to spending
your experience that the emseemed,
stilf
has been reduced by
enough to support not only the
phasis and direction put into me sound and wise ideas.
But about $12-billion a year, federal man) only proper and reasonable
demands of military defense but
carrying out these declarations is after 1948 there came times when deficits have been cut, taxes have that a body operating at the very
also of civilian growth and
prog- 0ften a different story.
America lost sight of this sober, been reduced, and a closer ap- apex of the national government,
in considering whether to recom¬
refet mp trv to ctnfp what
In 1948 I was Special Assistant calm course, this course steered as proach is constantly being made mend a national security
policy to
nuifrc of thp Wnto to James Forrestal, first Secretary much by economic strength as by toward balancing of the federal the President, should do so with
our

national

been to

coo

thP^w?n

Sf frPPdZ iZll

P

of Defense, to help in presenting military strength.
to the Congress his Supplementary
It requires a quality that few
£)efense Budget Mr Forestal un- possess to stick to such a course
in readiness a
military capability derstood the emphasis and direc- in times of alarm and of political
ito retaliate against an aggressor
tion 0f which I have been speak- opportunity. It requires a quality
•with such massive blows that he
fng jn his talk to me and to the °i calm balance, the product of exis deterred from aggression.
Congress he struck a note which perience and inner resources.

rr'-i

j

o.

*

^

(1) That the United States have

(2)

That

United

the

States

economy

be

of the
and vi-

strong
brant enough soundly to underlie

I

words,

ithe defense of the free world—of
[Which the United States is tne un¬
doubted

leader—and

[that it be

an

rives from

economy which

world,

we

Session

of

the

81st

vention

of

ciation,

Chicago, 111., Sept.

the

American

it.

at the

First

Annual

Con¬

Bankers

Asso¬

id5b.

z/,

to

in

state

my

as
as

developed
ueveiopea

by
oy

our
our

industrial and scientific mitiative and

genius, is

....

_

c

.

„

put

and

portance of

of

the vital

keep

sound national

a

im-

econ-

Ld.Ilce_OI a souna nauonai econ

nproper ^
iynro perspectivew«

our

powerSSeHere is °an unparal- For
feled event fn world history:

no

I

like George Humphrey.

man

a

knew Alexander Hamilton,

never

but I

George.

It
^

^£ the

culminating

nroductivitv

mighty clear and almighty strong

along another road.

&afXALrica^conomv

Assistant

philosophy

a

discuss

to

and

in

advance

the new emphasis and the new
perspective of which I have been

speaking.
and

The debates

torrid.

the

the

In

Planning

Board

long

were

acid

bath

of

the

of

Na-

tional Security Council, the Board
of
which
I
was
chairman
and

can

give up or postpone?

we

To speak thus unreservedly of
Secretary Humphrey's contribution is not to depreciate—or intended to depreciate — the pre-

eminent and penetrating qualities
of mind possessed by Foster

state-

Dulles, and by others of the President's
advisers.
Mr.
principal

before

Dulles and those others have their

by the Council to the
President, we tested these conflicting views.

high and assured places in the
galaxy, but it is George Humphrey
that I want especially to praise
before such a body as this Con-

through
ments

which

all

policy

worked

were

over

submission

You

will

remember

how

the

world looked at the dawn of 1953.

vention.

The United Nations

Perhaps you think I overstress
how wonderful it seems to me that

in

bitter

stability
The

in

conflict

of

NATO

world,
ance.

the

United

Germany, the

hung

States

like

world

debt

the

of

of

menace

free

The

doubt,

teetering in the

was

The dark

in

in

in the scales

Communism

pall

engaged

Korea.

was

future of West

golden prize

were

bal-

Soviet

black

a

sky.

The

outtop-

was

ping *Mt. Everest and headed
higher. The outgoing Administration

had

eral

for

48 Wall

Chicago

&

CO.

That

Boston

Cleveland




•

•

Philadelphia

Cincinnati

«

HAnover 2-2727
•

Washington

St. touls

•

•

Pittsburgh

San Francisco

omy.

to
It

the

a

Fed-

operate

deficit of

$9-billion.

press

Street, New York 5

that
would

fiscal-year 1953 at

over

C. J. DEVINE

estimated

Government

not

was

for

It

a

an

strong

would

time to
national econeasy

have

been

easier

continue at the speed of crisis,
have been easier to fol-

would

low recommendations
our

doorstep

in

we

found

January,

on

1953

recommendations to increase Federal

defense expenditures by $20-

men

the

can

in

not

nation's

affairs

in

deal with
the

same

in which each of us
proaches his daily business.
way

nation's business

seems

ap-

The

pretty big,

pretty impersonal, and pretty hard
a firm, tight hold of. Yet it

to get

needs just the

same common-sense

approach( you give to

This

longer

an

standard

—

a

every

week,

business

and

every

not

an

ivory-tower approach,
Coming fresh to Washington in
we did not think that to put
emphasis on a sound national
economy
on

the

don't
I'm

going

seemed; a
the

was

to put a dollar sign

national

think

so

to

security;
for
mention.
now,

and

we

reasons

It. just

horse-sense way to run

biggest

undertaking in the
world—re specially when there

act,

of

but

-

fiscal

of

our

na¬

is

papers

no

innovation. It is now
operating procedure.

vtt.

has

-

Policy

the

been

a

effect

of

placing this positive, enhanced,
and
equal emphasis on the
strength of the national economy?
In the first place, a climate has
been

created

the United

exists

and

States

today in

which is favor¬

able to the vitality and expansion
of

private

confidence

that

know

enterprise.
the
air,

There is
and you

in

confidence

is

most

a

stimulant to business
progress. People seem to feel that
this Administration is really try¬
important

ing to steer by fixed stars that will
not change.
A truly strong econ¬
omy has to be rooted in confidence
in government, and this axiom is
especially true in the free enter¬
prise system. People are willing
to take a long sea trip if they be¬
lieve there is a strong hand on
the

tiller.
the

In

are

second

place, the

econo¬

World' countries

of the Free

related necessarily and closely

the

to

of the United

economy

States.

A collapse

in

our

business

system, so ardently anticipated by
the

Soviets, would have been for

Moscow
a

a major victory, possibly
victory that might have over¬

come

the

World.

Free

The

pros¬

upthrusting
vitality
of
enterprise has re¬
strength and a confidence

perous,

in

the

But

collapse has not come.
States
a

other

peoples.

World countries
risk

1953,

polity

The Effect of the

flected

day,

feature

added

United

month

should

vacuum,

background

a

tional security

daily

every

such

facts.

work; and it needs that approach

your

pleasant

a

against

mies

approach and

what

to

as

The- Council

dollars.

What

some years' America had been

There was

data

policy might cost our nation in

havo

the to sustain the American economy,
of AmS
pioductivity Capitalj earnestly and often pas- asking as to every project, howsionately held, which placed mili- ever estimable: what will it cost?
"Our
resources,
such as coal, tary security first and foremost where will the dollars come from?
steel, wheat, cotton, and so on; without full weighing of cost. It if this project is to have priority,
our
ability to produce and was in my line of duty as Special what other less important project
the

a

like

was

solid

some

a

Convention of bankers. But let me
say this. I want you to appreciate
with me the inestimable value of
having at the Cabinet table and at
the Council table, week after week
prudence and intelligent fortitude

Economy

To

_

durj^ \15 +w?.eks' .th,e ?°u"d

"
„
Building a Sound National

own

/

follows:

de¬

must not lose

by Mr.»jCutler

as

States,
pidieb,

a

*An address

General

tried

"The productivity of the United

particularly

practicing democracy
and not from a garrison state.
We believe that, in
saving our
free

then

budget
I need not detail this story to

than the

Today the Free

are a

better credit

Soviet Satellite

countries.

Lastly,

there is

by-product

emphasis upon
nomic
and

its

one

of this
our

significant

bearing-down
national

strength.

That

execution

have

eco¬

emphasis
tended

to

convince the world, on both sides

Continued

on

page

28

Volume

182

Number 5470

.

.

.

(1413)

The Commercial and Financial Chronicle

SALVAGING

At the wrecked

GIRDERS FROM

RIVER

25

BED

Naugatuck River Bridge of the

New York, New Haven and

Hartford Railroad

Waterbury, Conn., Bethlehem Wire Rope,

at

VA in. diameter, is being used to salvage girders
from the river bed. We rushed
500 ft of rope to

approximately

Waterbury for this operation.

TEMPORARY

HIGHWAY

BRIDGE

ERECTED IN

11

DAYS

This 420-ft steel bridge,

vital link between Stroudsburg and East
Stroudsburg, Pa., replaces structure swept away by flood. The
new bridge, for which Bethlehem furnished guard rail and 300
tons of H-piling, was erected in 11 working days.

NEW

BOX

CULVERT

FOR

BOSTON

AND

ALBANY

R.

R.

When dams gave way near Springfield, Mass., the torrent washed
out 300 ft of high railroad embankment. Note tracks near top of

picture. Bethlehem rushed 280 tons of fabricated steel reinforcing
bars for new culvert, shown in foreground.

Steel

Aids

Flooded

to

Rushed

Reconstruction
On

Friday, August 19,

waters had started to

ceive urgent

that

Task

before the flood

even

recede,

we

began to

calls for steel. Soon it

immense

Areas

was

re¬

clear

quantities of steel would be

needed to relieve human distress and restore
normal life and activities.

We

saw

that

could meet the acute need

we

only by breaking into production schedules
and

utilizing the full facilities of Bethlehem

plants and mill stocks. We

were sure

of our customers whose orders
STRINGING TELEPHONE

CABLE ACROSS DELAWARE

cable over Delaware River to replace line de¬
stroyed by flood. The order for strand for this and other lines
was phoned to Bethlehem August 19 at 11 p.m.; the strand
was delivered the following morning, just after daybreak.

that

any

might be affected

would approve our course.
So within

Lineman strings

shipments
tons

a

few hours the initial emergency

their

were on

of structural

bars and rails

were

stricken

In

areas.

way.

Thousands of

shapes, piling, reinforcing
rolled and rushed to the

some

cases

steel

was

and in transit less than 48 hours after

rolled

receipt

of the order.

Shown here

are a

few examples of the wide¬

spread reconstruction in which emergency
shipments of Bethlehem steel

currently

are

being used. The total task of rebuilding will
of

course

All

take

months to complete.

many

major Bethlehem plants have shared in

meeting the flood

emergency.

Our plant at

Bethlehem, Pa., largest producer of structural
,

NEW

RAILROAD

BRIDGE NEAR

STROUDSBURG, PA.

half-way mark in erection of new
389-ft bridge on Lackawanna Railroad near Stroudsburg. As
soon as first span is completed, work will begin on second
span. Bethlehem is supplying structural steel and H-piling.
Construction workers pass




shapes in this country,

was

itself

a

flood

cas¬

ualty, but as the plant got back into operation
its output

also

was

made available to render

assistance in repairing

flood damage.

NEW

This emergency

BRIDGE

ON

PENNSYLVANIA'S

ROUTE

11

bridge will carry Route 11 over Spring Brook
Creek, south of Scranton. The new bridge, built with Bethlehem
H-piling and structural steel, will consist of four spans, with
roadway accommodating two lanes of traffic.

26

(1414)

The Commercial and Financial
Chronicle

Banking in
I

When

first

addressed

the

San

1936,

Francisco

By A. L. M. WIGGINS*

banking

Chairman of the

in

September,
beginning to

was

from

recover

the

wide financial

and

disasters

of

the early '30s.
On that occa¬

sion,

I

stated

and says

that bankers

"willing

were

and

ready

correct

the

in

banking.

banking
which

the

or

and

needed"

as

have

the

balance

u

To

the

very

roots

system

of

of

to

the

Association

ers

our

the

branches
sponse

«We should

fore

under

tern.

solid

answers to the current

banking,

of

weighed
interest.

keep constantly berecognition

democratic

a

our private enterprise sysIf, therefore, we are to find

Bank-

lems

reaDstic

ug

tbat

of

part of

my

govern-

The Problem of

probmust be

they

the scales of public

in

A

Where the

jn

tbe

0f

thVpast"twentv Tears

that

there

r>ublic

acquisitions
sions

of

piace

;»

iustifiration

interest

and

banks

Manv

suitpri

is

for

consolidation*'

the

in

of

ha

them

most

mpr«Prc

branch

that

ctrnn^r

ovtontak-pn

up

have

rp

should

banking

of

noted

banking

that

during

the

total

period,

all

bank

offices, in¬
cluding branches, increased only
8.4%, population increased 28.5%
while

bank

400%.

We

deposits
should

increased

avoid

having

to° many banks; but at the

same

time, banking facilities should be
provided to meet the needs of the
increasing population, either
through the establishment of new
or

by

the

extension

of

branches.

service

not

were

on

increasingly popular.
be

20-year

banks

inctit„t;nnc

betted

a

However, all

wankjncr

Satisfactory

of drive-in

use

become

number

study of the history of bank-

shows

to demands for service

part of people living in out¬
lying sections of large cities

Yardsticks

in«~ pvv~ey

Many of these
established in re¬

were

the

has

Banking has

whereby the freedom
banking may be perserved as

September,

in

again.

and

choice

1944, as follows:

financial

happen

before

on democand provide services and facilities that will merit
support of
public opinion.
It has no other

govern-

American

happened

choice but to bank

no

which

illustrate, I quote from

address

^

cities and counties.

assessments.

racy

ment.

changes and
pressures
that
resu
from wars, postwar and other adjustments, the American people
of

spite

consideration

democratic

ion."
In

to

goes

willing and ready
weighed in
of fair public opin-

con¬

this
has

will

including the
however, a

prospers,
There
is,

basic

more

system

years has occurred within
past 5 years. In number, the
greatest increase of branches has
been within the limited
areas of

:

are

this

past 20

It

This

bankers.

banking has been one of
growth and improvement and of
servicing the most notable development of national life in all
can

to

■_.•

every one

that "the whole history of Ameri-

history. We

:

-v-

1,-

the

Discusses problem of bank hold¬

Deposit Insurance

people generates and promotes a
dynamic economy under which

grow-

of the

most

branches has increased

Sixty

per cent of the increase
in the number of
branches in the

asserts

in Federal

ing needs of the American people
indicate

ber of
887.

public is against nationwide centralized multiple
Urges banks implement Federal Reserve policy and proposes
change

the exigencies
of
depression

A. L. M. Wiggins

might

that, in the public interest, there is justification for

ing companies, and

any

system

past 5 years, the number of banks
has decreased
327, while the num¬

our

solidations and branch extensions of banks.

to

difficulties

resiliency of

Thursday, October 6, 1955

.

number of branches has
increased
3,293.
Many of the banks were
converted into branches.
In the

S. C.

banking system during last quarter-century, making pos¬
sible a prompt and adequate response to demands for new
and expanding
banking services. Defines "public interest" as related to the banking
system,

economic

and

Board, Bank of Ilartsville, Ilartsvillc,

Prominent Southern banker and former ABA President stresses
the strength

world¬

.

Democracy

a

State Bank Division of the A.B.A.
in

.

to

the

nublic

such

developments
necessarily good
The

°n a national basis, there is
uniformity in the law with respect

to branch banking td the extent
of-an absolute prohibition of
measure the
branch banking across state lines,
determjne not only the kind of
good and the bad. In one respect
both of national and state banks,
banking system we will have but
^ js cjifficuit to find such
a vardWhile most states have a defitbe kbld 0£ economy that is to
gtick because of the wide
varia- nite P°bcy as to branch banking,
nance, and of consumers as well,
prevail in this country. The sov(1) Banks occupy a more sig- tion in
public opinion among the there are practically no state laws
Whatever the requirements have ereign people are the final ar- nificant
relationship with their various states as to
the policies with respect to the ownership and
been
the strength and resiliency
biters of our national life, and no customers and the business life that should
apply in the control control of banks by holding com'
nankin?
svstem
have
manipulation of shrewd operators °L
ar.eas tbey serve than do of multiple banking.
pames or otherwise. Some states
.«««'»»>■"
expect

the

wiU%f

Banking

system to
banking need
of government, of business and
industry, of agriculture and fi-

inta*

cn

m the Public Interest
In defining public interest as
reJa^ed to the banking system, we
might ask what are the principal
considerations.

ment> ultimately the
the
peopie prevails. The people w.ll

banking

meet every essential

Pi.Hiin

proble!ris
yardsticks

fTnd satisfactory

to

that

will

r

.

quale
,

for

.

,

to

response

demands

and

any

and

new

lonS succeed

all

,

in#

i

willingness and

part

of

bankers

banking
rteonle

Part

*"

no

needs

doubt,

ened

to

of

this

cerve

the

needs

of

,'
enlight-

banking
the

address

Annual

ihe"

Meeting

American

cago,

by

Americans

of

Mr. Wiggins at the
the state Bank Divi-

26,

*erms of what the public
a

banking system.

desires

If bankers

f0]i0w nniiries that thp nnitiip Hp
0 ow policies tnat tne Public de-

a

flows.

wpll-hpinc/

and-concern

nf

to

faTmLiAthe

McLeod,Youmg,Weiii & Company
LIMITED

Underwriters and Distributors
of
Canadian Investment Securities

Public interest.
(3) The customer looks to banks
*° meet his credit needs for busi..

.

and

ness

for

flnancing the

both

durable

pur_

and

con-

sumer goods. In recent years, he
has called on banks for
increased

of
banks
to
increase
their ability to meet the
""""J
^ iucci Uic borrowuuiiuwing
requirements of the

The public expects good
service in the performance of all
banking
functions
and
charges
that

the

are

investment
investors

a

serv¬

requirements

seeking

op¬

rate of

bears

Boston

of

private teletype
in principal

offices

Canada

and

to

The

First

Corporation, New York.

(5)

The

situation.

cal

simple

question

branch

banking is for

NEW

YORK

QUEBEC

long accept

under

a

which

banking

bank

public interest. The various states,
through their legislatures, decide
this

question

The

for

record

on

Vparq

number

ojnpp

of

interest requires consideration of

the character of the ownership of
banks.

importance
m

a

of

tory

authorities

as

to

dynamic

npn

that
qi

in

i q'-m

Bank Holding

the

It is

thp

now

rHJh.r
.Ti^hJ
t tw. country Public interest,
in this AilnA®

1,692

while

Companies

recognized that in the

bank holding com-

Continued

the

Webb

&

on

Knapp

inc.

serv¬

the

eoonomy

reasonable

monetary

and

stability.
this
we

formula

should

of

public

examine

the

banking system, its structure and
development, including bank
mergers,

holding
forms

of

branch
banking, bank
companies, and other
centralized

control

of

railroads,

themselves,

shows

cus¬

whole operate in
a

the

It is also recognized in the relationships
between
commercial
banks and investment banking,

banking

as

of

the ownership

of public service corporations has
long been recognized by regula-

banks

decreased

The

public interest

(6) The public not only expects
demands
that
the

but

multiple banking.




against

excent
P

set up some restrictions on bank
holding companies. There is increasing recognition that public

expects

reasonable
The
pub¬

institutions for banking

interest,

HAMILTON

whether

or

federal

Legislative proposals have been

are

Under

KITCHENER

to

as

j

before committees of Congress
f°r a number of years, seeking to

ices.

ing

r

also

competitive
lic will not

credit

EMpire 4-0161
MONTREAL OTTAWA
WINNIPEG LONDON
VANCOUVER
CALGARY

permit

•

no
subiect

to

poli¬
maintain¬

TORONTO, CANADA

statewide

limited area branch
banking,, $nd 13 states either prohibit branch banking or make no
legal provision for iti It is not a

thp

on

on

and at the same time
follow
cies that contribute to

Head Office

permit

restricted jor

practically

s
anti_trust laws>

the

savings funds.

preserve a

system

Inquiries invited

SHERBROOKE

public

by banks

banking to

interest

50 ICING STREET
WEST,

received

"hemmed in" and are
not permitted to
choose among lo¬

Our facilities include

states

is

lpcyjciatinri

i^S^siaxion on x

deposits

on

relationship

their investment of

growth potential.

to

interest
fair

a

return

tomers

cities

There

fair

structure

service

the public interest with

Fifteen

forms of cen-

on other

and
reasonable, in¬
interest rates on money
borrowed. Savings depositors ex¬

portunities to invest their funds in
established Canadian
companies with

wire

limitation

cluding

rhat

complete facilities for

American

nilu!Tun

what

l<o tne extension ol branch

has

(4)

the

icing

people

_

in the public interest.

are

pect

Since 1921

of

]aw

the branch banking, 20 states

.

offers

the
tho

rpsnppt to thp pxtpnsion of hranph

programs

.

swbs rsaust

they'con: tral control of multiple banking

in

th**

participation in real estate financing.
It follows,
therefore, that

..

Txtl oT

ir,

press

iiHpr

vsHnns

every

strength^ to banks is in

ln the public inter- chase of

est, then government will step in.

1955.

terest

as policies and programs, in ac*ds

Banke"""AssociaUon^Chu cldes are not

in., Sept.

rinH

business

weii-Deinu 01 the
matter of personal in_

#

lg

which

Whatever

well

to

in
♦An

heslth

*

banks

of

the

are

dependent viewpoint of the
t e legistetures of the states member of the community.
American people and of the
varycompletely confirms these obser(2) Public interest requires that
ing needs in different states, the
vati°ns.
We must continue to banks be financially strong, that policies
adoptedAby some states.
evaluate
hankinf
the
hnnkincf
deposits be unquestionably safe are diametrically opposite to the
valuate banking, the banking and
a^ the game time avaiIable to
lideg followed in other states,
structure, banking services, as depositors on demand.

We know that

of

Banks

ln

the

American

an

*

mg m the nationarCongress and

the

life-blood

The

b

ine legislative nistory ot Dank

.

willingness

from

self-interest.

responsiveness

on

meet

the

of

arises

desire

a

^

The legislative historv of hank-

-i

Behind this response have been
a

community.

the

approval."

.

#
-

the

<"•

Programs that do not meet public financial arteries through

expanding

D3.nk.inu services#
_

Plan3

swsaasswjss

Real Estate is

Everybody's

Business

page

36

Volume

182

Number

5470

.

.

.

The Commercial and Financial Chronicle

(1415)

27

fry///'

fj^5^v>v^:::*v,
##'<>X::

xpWM*

l|p&^
iSc

hAz&msL^

mmm*

Coming: Still another new Pure Oil
.

'•'::

'

•

-4

'

-.

,.,

' -,'<■

1

.

.

', '

•'.;

Refinery Unit
.,"

.

•

•

•

••

'

.

•

.....

•,'

.

'

Giant catalytic reformer is
of Pure's

and crude
...
'

Latest development is a new catalytic reforming
unit at Smiths Bluff refinery, near Beaumont,

Texas, which will keep this refinery one of the
most modern in the nation. By converting lowoctane

naphtha into

reformer will

a

high-octane product, the

substantially increase the refinery's

output of top-quality gasoline.
•

.

.

Now in full operation at the Toledo refinery is a
new unit for the manufacture of specialty naph¬
thas.

.

,

,

•

..

.

The

new

• •

:•...'

.'

■•;. '

•' •'. •,'

newest example

expanding refinery operations

Big things have been happening at Pure Oil refineries
—and there's more coming.
„..

•'

'

I

charging capacity.

whole new refinery was added to the
growing PURE line-up when complete refining
facilities at Lemont, Illinois* were acquired. A
Last year a

new

catalytic reforming unit is now being planned.

All this is part

of PURE'S ever-expanding opera¬

phases of the oil business, from research
to marketing. This progressive policy keeps PURE
moving ahead in a highly competitive industry.
tions in all

,

-

'•

t

Be

sure

•

*

J

i'

with Pure

Fluid Catalytic Cracking Unit at the

has already boosted that
plant's capacity for producing high-quality gaso¬

Smiths Bluff refinery
line.
,..

catalytic reforming unit at the Heath,
Ohio, refinery greatly increases gasoline output

The

new




The Pure Oil
35 East Wacker Drive,
i

Company

Chicago 1, Illinois

'

'

.

.

;

• •

28

(1416)

The Commercial and Financial Chronicle

West
I

have

the

honor

One

of

the

Europe Recovery Threatened By Inflation

to

bring you
appreciation from
of the Treasury.

greetings and
the
Secretary

of

service

our

^

Departis

ment

know

that
b

W. RANDOLPH

Under

BURGESS*

believe

i ng

e

inflation.

threat of

in

carrying

with

out

world.

Urges bankers to ward off the danger by lend¬

long-range point of view.

a

of

ing citizens of

Fund,

this

W.

R.

Burgesa

ago, brought forth a cross-section

is

view

visable

democ-

than

us

and

of

through this body.

The

direct

of

the

have

you

rendered, and will, I am confident, continue to render, constitute an impressive list.
They in-

economies

countries

For

financial

ment

bankers from

the

58

revealed

of the free
govern-

and

visiting

men

views

of

days

week,

a

all

10

and

the economic position

exchanged

services

concluded

world today.

this

individually

which

member

helpful

members

acting

no

has been

more

the

Association,

of citi-

zens

I

to

our

operations; the collection of
taxes; and many other specific

banking services.
accomplished
and

sale of

What you have
the
promotion

in

Savings Bonds is

out-

the

over

with

world

cial

soundness.
Fortunately the
country has had the leadership in

frankness

for the whole Sterling area,
less than they feel to be ad-

serves

before

making their
rency fully convertible.
But the picture as a whole

behind them.

These

cur-

In

I

am

sure

would

you

all agree,

however, that, important
specific transactions

these

as

are

our

ma-

J

.1

Chlr

'peace

"in d

^

and

and

war

dpnrp^inn

to

"I

life

.economic

we

instance,

are

of

nrosneri

Jnnri

the

picture of the
this

and

the free

the

world

on

seas

still

massive

have

requirements

the cold war.

just

weeks

in

returned

from

Europe, includ-

ing attendance at the meeting of
International Monetary Fund
the

International

Bank

in

Istanbul, I think it might be productive and enlightening to look
at

our

present

nancial
eyes

of

The

is

economic

problems
our

and

through

fi-

the

friends abroad.

meeting of the Bank and

with

in

instanrp<;

cnmp

"aJ"

the

better

pat-

to say

that the conditions that

cessitated

tional

States

is

whether

we

creditor."
have

the

postwar

arrangements

have

been

this

our

services.

supplemented

of

"good

a

period,

increased

ports of goods and
have

measure

we

We

by an
economic
aid
program;
and, as
this has diminished, by military
assistance programs, which have

important

Tvroc.+

nf

hold

now

do]lar

fbp

Furnnpan

substantial

countries;

gold

and

Germany, over
^-billion;
France,
$1.9-billion;
Belgium, Holland, over $l-billion;
Italy, $900-million.
Some coun-

pride

such im-

in

desirable for full liberalization

good
and working confident-

Bankers

As-

"f

,

'

.

m91/
.

billion
tc

u

u

of
!j

the

United Kingdom, which holds re-

making the, dollar

could

not

too

great in certain

American

a

have

instances,

continued

too

overall

help

and

But

now

of

the

picture

The

prosperity of tobrought the .threat of

have

infiition

and

forces

That

arms,

toward

is

for

armament

sav

of

nppfi

for

<,lirb

vast

About
Now

militarv

described

that

not

was

CQat

a

time

Qf

free

that

as

be

can

a

^at

world

the

.g

one

He

of

at

least,

...

'

.

„

those countries
through the real

wringer

understand

the

«*»

a

a

ily upon us, for we are the lead
As the dollar goes, so
go
the rest of the world's currencies,
Our economic vigor and

stability

UUSC1V

Here

is

the

public finance.

ity does not blind

Inquiries about this individualized service

are

invited.

heads

does

not

commitments
will tin

WAINWRIGHT & RAMSEY INC.




Consultants

on

Municipal Financo '

At
ment

democracy,

PINE

STREET

•

NEW YORK 5, N. Y.

today

on

u«s

such

has

lead

or

over

and turn

us

to

us

our

over-

to excesses which

into

time,
these

a

yoim

balance

the

with

is

men:

more

that

nat-

his belief that
practice

persuasive

what

you

than precept;
speaks louder

are

than what you say; that the
strong
man
cannot be provoked to talk

back,
to

a

to

slug

taunting

deficit does not contribute

flation; to keep

a

rein

on

that
to

a

in-

govern-

a

recording

new

out

of

"com-

hf":it r-r,T:

bv

an

rlst
•

mnsion

^nnHtv^ian-

that

mUitaw

upon

j

~

cfparlV

I

*

required

ning

nnd

force

will

to

alone

unde^

u

shore

it

Up,

strnnff

that

suspect

who

not

there

are-

subscribe

some

to

my

thesis that this Administration is
dedicated to a strong national

it

out,

to

opponent's

descend
level.

the

D"ri"g

ln his

twT° ^ 3 h3,f ^
service, I had as good an

opportunity as most to observe
"?e qualities which have given

last

voice

few

has

weeks,

been

on

dous

confidence

in

the

released

by

ability of
govern-

once

tl|uat

we

had

heard again and again and
again—the "plundering of natural
resources";
those
two
wicked
whipping boys, "Wall Street and
Big Business"; the need for the
Party now out of power "to rethe

government

to

the

nen—

"le Pe°

g°Vernment

t>"e »

Well, I have an idea that there
are a lot of other Americans who
people

are

government

kind of
which

they have been getting since 1953.

sserpxeZ
sim^^few'oMhem
Americans,

air.

Many of the phrases used
were like an old refrain

that calm balance, which is think that the
our last best hope to steer away enjoying the

One such quality is his tremen-

familiar

a

the

more.

turn
.

govern-

so

on

economy, because this Administration believes such an under-

responsibilities:

budget,

eonsum-

pinning is an absolute necessity
for the survival of us Americans
as free men and women. During

be

fr0m crash and crisis and to keep

rere^inn

one

devel-

should

resources

.

to
70

problem

which you and we must work together. We must see that prosper-

all, he has

where possible by private
interests (by private and
public
interests in partnership if need

ural

oped

undergird the economy of others.

improvement of public credit, sound financing of

*

display at the Summit Conference

be); just as much a part of him
rates, low bond prices, as the belief which he shows in
credit, and even controls,' ,hjs daily life and his
dealings

horse.

Som-7 society to
government t^ freeze the
government to ireeze tne

*ng

observ-

*"».
COnstltlOnal

free-enterprise

.onomic change

«

a part of

and

UL 1Ci

»-t

Moscow, by the new-found

This belief will continue, because it is ingrained in and a part
as

„

another general war. He will not
be fooled by sweet, soft talk corn-

economy.

of_him-just_as much
his belief in

rhanl?

of the gov-

?

•

ing Passion: to maintain this
world at peace, lest civilization
Perish in the consuming flames of

a

other days); just as much a part
of him as his belief that, in a

depressing after-effects of

+

the

upon

through
+u

vantage.

dependentj £or the

years

aA",

status quo for its particular ad-

by

ance of, the
separation of powers among the executive, legislative, and judicial (a
virtue somewhat overlooked in

conn-

.J

puts

try ^as found it necessary to take
g^gpg toward ensuring continued
stability. They know from recent
tragic experience, the injustices

after

causas

nomic grouping

firmiy

vitality

econom

comes

also

Above

in

In

tions favorable to economic rhanoe

have

ghed

poiitical heat

believes

I

that

onlv

but

B!

dp-

adopted

presjdent Eisenhower
on

believes

twIc!

mmtary ae

policy

fair chance

a

not

sustain-

him

rmintrv

lliarvc

To this end, so-

change

President Eisenhower
the

things.

forces

inilallon> and COUntiy aitei COUn

because thev remember the bitter
taste
of
inflation.
Nevertheless,
the responsibility rests most heav-

capital requirements and other problems of

giving

growth

we

defense that
of

He

a

curtailed

agencies in financial public relations,

supple-

in

to our nation.

more'rneed"nor b7"your Tess."

"float-

a

to

balancp

a

strong American

very growth and

day

military

toward

nearby
on"an

under

men

£ense continues.

standpoint,

look

our

ing and a£fording to sustain over
as
iong a period o£ time as the

long.

Threat

must

we

of

£ree people is capable

invaluable to

was

Inflation

-

money"

of governmental

are

other

society, many of our frictions can disappear in an
expanding economy, under which "my

cutting down the total

D-Day."

WOrk

hesitation in saying

no
an

been

our

jng

or

danger of inflation better than we
They are therefore ready to
accept the discomforts of
high

advisory service has proved its value to all types

each

individual

up

made

do.

independent financial

conflict—they

a

fixed D-Day in favor of

secure

restoring the free world to its
present self-reliant status.

inflation

20 years our

the

ciety should be fluid, affording to

building

anything like so rapid or so comprehensive a recovery.
Some
may
question
whether
our direct aid may not have been

In some ways
which have been

over

at

been

such

number

foreign aid program. Without our
help Europe and the other free

inflation.

For

in

and to do

We

and the

American

sociation, Chicago, in., Sept. 27, 1955.

Th

not

while

stability of our
firmly mainThese two objectives are

tained.

and

powerful

the

has

currency

We have abandoned "the prior Administration's policy of

stable base for world financial order, and partly through our

resefves:

+rQjp

time

same

military

our

more

before

each

have

about. This has been done partly
by keeping our own affairs sound

been powerful elements in restor- sometimes
ing the economic equilibrium as But I have
well as strengthening the defen- that from
sive bulwark of the free nations.

today

ing forces from the Far East.

we have had an
share
in
bringing it

im-countries

this

leadership,
is
ever

not the warmonger that the Communists
loudly
claimed.
The
United States has been withdraw-

passing

are

and should take

United

a

the

ne-

transi-

billion provement for

the

best

Over

greatly

from

than

w

the

and

dollars

will

also

keeping

Strong National EconomyFoundation (or National Secnrity

away."

and

of

good

military

is

and

in

A

convertibility.
impiovement in tne worm
shows why it IS possible

ims

gold

of

$2 V2

with

history

Continued from page 24

economy

flow

-

of

this,

from

much

a

billion

reserves

°f

might

judgment,
menting
ly and constructively together, I strength

Here is great cause for satisfaction, and we in this country can

in
and

wise

you

long range point of view.

a

But

""J
almost dejacto

new gold production;
the rest came from the United
States, largely from the aid and
military programs. This net out-

r--*^er^ar^s i°c ^r* BTgiesso,be.f0re
be
First General Session of the 81st
Annual
Convention

as

mtirp

Bu^sia) h?ve Sained

the

and

cases,

levels and in many
much as 50% higher

in

difficult

these

President

a

economy and the currency sound
ancj strong.
As a result of his

things to do: to lend money prudently, to counsel customers wisejy; to handle your investments

tern. Nearly all the great trading
countries are able to pay their
°wn way* Bor practical purposes,
the currencies of several of these

prewar

aurxru^ dollars;

to

still afloat

were

of Korea and

several

above

situation,

bave

of

"International trade is steadily
approaching

now

is

v

struggling
back from the
devastating effects
of a terrible World
War, we were

I

everywhere

m/pn

which shift with the tides of
war,
both hot and cold. While
we, for

As

war.

Production

came

of

other countries

by

and

year,

con-

and good^ will their basic

ifnal wpll-h^
J**
Today the broad

hit

last

are

•

nnH

peo^f^become^h^k^6

is that

time

nihff trio Slde .the United States (excluding

Tti

7mdPr«ftnnAin«

that

this

and.ours-ls ~even m0re ms0me instancesLiTnt11110 "}oveOne index of strength is the
hi!l,rSSna/' gain in reserves of gold and dol-

aZ

hp
'

The outstanding conclusion to
be drawn is that the free countries show a great improvement
in their economic positions from

^urn

y0Ur

in

believer

strong

we

time

of the greatest

one

ieaders

unpopular activi-

the present

critical

who is

need your support.

pro-

the countries of Europe have substantially
recovered
from
war

T

often

are

ties; and in carrying them out,

vides evidence that we are arrivmg at the turning point, where

^ice'/Vd/,

this

ment credit; to exercise wisely its
powers over private credit.

legal

and in detail.
We learned the devastation and can hencelorth
facts and, more important still, stand on their own leet.
the opinions and the personalities
ln
adares*

tinuing their gains since the

standing.

recent years, your
has had the
exacting

duty of balancing the urgent re¬
quirements of national security in
storm-tossed world, with finan¬

currency.

Economic Improvement
debt

these

government

understand-

and

well-

a

responsi-

racy;

assure

-

-

Over

Stresses firm maintenance of the stability

bilities by the

group

successfully

problems, and
and
increasing

being for the people of this coun¬
try—and, in so doing, fulfill too
our high
role as leader and sta¬
bilizing force throughout the free

ing prudently; to counsel customers wisely; and to handle their investments

and

assisted

our

the

are

sup¬

deal

can

continued

Treasury Under Secretary reports his impressions of economic improvement
in Europe, but warns the very growth and prosperity of
today have brought

ledge

we

we

with today's

Secretary of the Treasury

in

the

ported

|

By
i

satisfactions

greatest

Thursday, October 6, 1955

...

Lincoln, if I

Abraham

this Administhe very best it
can, and knows how to do, for all
the people; if the end brings it
tration

is

may:

doing

Number 5470

182

Volume

(1417)

The Commercial and Financial Chronicle

. . .

continue

Aluminum

ten angels swearing
right would make no

out

were

Secondary
Offering Completed

wrong,

we

it

brings

and if the end

difference;

is what I
sincerely believe—what is
against this Administration
all right—which

out

most

said

note

private citizens who

we

—

Co.

Oct.

on

busi¬

ing and in industry and in

play a big part in help¬
ing to make our national economy
strong
enough
and
vigorous
enough to carry through the years
ahead, without overexpansion or
painful recession. To do our part,
we must use
some industrial and

ness, can

the

public offering

the

offering

subscribed.
resented

a

The

of

over¬

sold

the

June

ton

long-term
$3.75

of

and

months

amounted

20,342,-

Co.;

share.

common

Merrill

Aug.

on

31,

Smith,

Union

of, the

Weld

company

consisted

1955,

&

Co.,

Co.;

&

A.

Inc.;

of

&

Securities; Corp.;

Becker

&

Co.;
&

Co.;

Paine,

Curtis,

is

and

Co.;

garet

White,

Co.,

H.

Oakes

Howard

have

this sound advice:

business begins to

slacken—as

excessive

of

result

that when

learned

have

a

inventory

by
other

overbuying

accumulation,

for

consumers,

or

reason—an

easy

any

policy

credit

The lesson that still
needs
learning is that credit
restraint is equally
necessary

is helpful.

.

ble

.

the seeds of future trouIf

sown.

are

with

1980

•

expansion,

of

periods

during
when

_

we are

to reach

confidence

our

un¬

diminished, and with the econ-

continuing

omy

.

..

operate

to

at

highest efficiency, restraints on
credit may be needed just as
often as easings of credit."
The

Secretary was here speak¬

ing, not of governmental controls,
but of voluntary self-discipline.
'

It is my

lie

certain belief that there

ahead

America

for

in the

many,

many

free

vided

that America has the

years

leaders in government

pro¬

sun,

right

and in pri¬

vate

enterprise as well.
Those
leaders will be right if they really
the

fense

build

we

the rock of

on

will

World

Free

unless

secure

neither America

that

understand
nor

a

remain
de-r

our

.strong* and

growing American economy.

Daniel Rice Installs
Were to Fairman Go.

What Will

,

CHICAGO, 111. —Robert W.

Strauss, Manager of the Trading
Department of Daniel F. Rice and
Company, 141 West Jackson
Boulevard, announces the instal¬
lation of a direct private wire to

Soon the 1956

the

trading department of Fairman
& Co., Los Angeles, under
the

of

supervision

Richard

G.

Prescott

&

Edwards

own

&

The

offices and

Kansas

ert M. Burns is now with Walston

San

of

Montgomery
the

Francisco

New

Stock

Street,
and

York

Exchanges.

the

lengths, coiled for

Pretty

are

secrecy

you'll

soon

see

the

will

of

canvas.

feeding

them all!
models

1956

likely

them all. But

no one man

one

thing

has

you can

CLEVELAND, Ohio—Charles G.

Co.,

is

now

Inc.,

members

of

with

N.

B.

the

Green,
C.

Exchange.

through

easy

handling and

automatic

presses.

and ductile to

properly to the limits of the

long die life.

assure

It must be carefully

processed and controlled in order to

steel that makes it
customers

to

cut material

We
and

handling and

cooperation with customers—to

safety, strength and

—

Wil¬

staff of Elliott T.

Carson

Moore, 4151 East




in

cars

Whatever America's industries de¬
mand of steel, it is our
it in the

aim to supply

quantity and of the quality

wanted,, when it is wanted, at the
lowest

of

steel must have

on

.

.

.

designers,

all will be beautifully

skill

the

of

manu¬

one

metal

to

the

make

car men come

styling

drawing operations. And this
a

a

IIow steel does it

cars

new

it is necessary

customers.

SEVEN

GREAT

DIVISIONS

WELDED INTO ONE COMPLETE

National's role

National Steel—through

sculpture these

our

finishing time and

clean base for painting.

true.

That metal is steel!

To

possible cost to

good, well prepared

surface to minimize

provide

major divisions,

style lines

that steel meet

is

a

of its

Great

Detroit-located

major supplier of the steels that

will be used in 1956

exacting demands.

STEEL-MAKING

two

Great Lakes Steel and Weirton Steel—

NATIONAL

STEEL

GRANT

Street.

economy

today and tomorrow.

cars.

Lakes

Steel Com pany •
Hanna Iron Ore
Products

•

BUILDING

Company

Weirton

•

•

•

National Steel

The Hanna Furnace

National Mines Corporation

It is quality

CORPORATION
PITTSBURGH, PA.

•

Stran-Steel Cor|M>ration

Company

Corporation

STRUCTURE

Steel Corporation

(Special to The Financial Chronicle)

Calif.

losses.

make better and better steel for greater

Joins E. T. Moorte

BEACH,

scrap

striving—through research

are

flow true to form under the pressure

for

liam G. Eisenmann has joined the

our

production and

of deep

count

the most

LONG

possible for

speed

styled. They will display the genius

Erb

Stock

quality steel,

forming dies and uniform to

Building,

Midwest

require

cars

possible continuous

greatest

It must be strong

look

carefully guarded secret.

a

In fact, most
seen

the

work

dreams of

(Special to The Financial Chronicle)

&

wide sheets of the best

coming. Haul¬

in

under

town

of

Green, Erb Adds

fenders, hoods, roof

panels for 1956

cars

facturers, and the tremendous ability

Lowry

and side

trucks will slip them into

That's

SAN FRANCISCO, Calif.—Rob¬

265

models of

like?

With Walston Co.

Co.,

new

1956

(Special to The Financial Chronicle)

members

exciting

away

What

&

the land.

special features. All will have sleek,

For example,

[t won't be long now!

Cleveland, A.
Sons, St. Louis,

Baum

K.

rooms across

exciting styling—because of versatile steel.

Co.,

& Company,
City, and Thomson, Kernaghan & Co., Toronto.
George

in show

R.

Daniel F. Rice and Company also

to

They Look Like?

will appear

Each will have its

O'Neil, and a connecting wire to
the trading department of Stone &
Youngberg, San Francisco under
the supervision of John J. Quinn.
has wires to their

cars

D.

Associates, 2101

Street.

sales and this year's profits.
The Secretary of the Treasury
"We

Mar¬

associated

become

with Mutual Fund
L

Inc.;

—

Robert

and

years

last April gave

Dean

(Special to The Financial Chronicle)

SACRAMENTO, Calif.

this

merely

than

larger

M.

Webber,

business statesmanship. The ques¬
tion

Horn-

Laurence

2 With Mutual Fund Assoc.

Co.; A. C. Allyn & Co.,
G.

&

Weeks;

Inc.;

Kidder,

Barney

Clark,

Witter & Co.

Lynch, Pierce, Fenner &

Beane;

-

Capitalization

will

&

Noyes

&

Jackson

offering

Co.;

Co.; Hallgarten & Co.*

&

Marks

Morgan Stan¬

Blyth

Sachs

blower

First Bos¬

the

Republic
&

Hemphill,

Peabody & Co.; Lehman Brothers;

income

net

&

Goldman,

in

Central

Dodge

stock.

with The

others:

debt;

cumula¬

stock and

common

Corporation
among

ley

operating

six

1955,

30,

are

$36,027,000, equal after pre¬
ferred
dividends,
to
$1.72 per

rep¬

who

Associated

products.

and

the

for

$411,641,000

Davis, Board Chair¬
company,

preferred

was

portion of the holdings

of Arthur V.
man

stock

to

sales

net

ended

share.

quickly

was

in

shares

407 shares of

alloys into semi¬
finished

and

revenues

200,000 shares of the aluminum

its

and

finished

Total

This

tive

bauxite to the fabrication of alu¬

3

by The

per

subsidi¬

an integrated pro¬
primary aluminum, from
mining
and
processing
of

of

producer's stock at $78

its

and

659,909

ducer of

First Boston Corp. and associates

enterprises, in bank¬

conduct great

Aluminum
made

$308,350,000

aries constitute

of

of

was

approximately

own

company

minum
with

different

Now Jet me close on a

stock

America

The

distribution

secondary

common

of

won't amount to anything.
.r

A

to

7% of the outstanding stock.

29

30

(1418)

The Commercial and Financial
Chronicle

..

Thursday, October 6, 1955

.

'

'

1

•

'

I

A Creed for Free
I have realized with

dismay for

would

faced

arrive.

I

banker

one

in

have

alone, bathed
n
perspira¬
tion, but sud¬
denly to find

After

i

oneself

all

the

in

bank¬

world

one

and

room

be

to

ex¬

inner¬

most

inhuman

s

knovlr what

book!

Businessmen ought not to boast of
free
enterprise
without

some

explanation.
I
was
fcand-bagged into it by a very dear
friend of mine whom many of you

being
willing to take the time to explain

know, Ted Weeks

it.

the "Atlan¬

Monthly," who caught

an

off

government

in

The

The thing that is

above

above

everything
else,
as businessmen.

contemplation.

you

ing about

by

people

or

has

try to
what

the

out

the

taken

ever

tell

"You

American

mean

of the

one

most

has

I

a

very

*An address

General

the

He

I

and

vacation

a

that

a

we

our

five

working

are

day, and

on

in

to

bearing

are

shoulders,

back

comes

shall

forget

never

see.

pretty well fed
a

year

us

two

were

Chicago business¬

who recognized
my

men

prac¬

ugly face.

They said, "Aren't

minutes later I heard one of them
lift his glass and say,
"Joe, here's
to
us.
We have dragged
these

we

never

get

Need

a

to

Randall?"

think

Sense

What

*

the

damned

today, it

of values

mine

1955.

to

seems

by which he

his

own

said,

Clarence

you

"Yes."

all

women

Well,

needs

of inner values.

me,

is

can

deter¬

they

steamer

a

He needs to
know the purposes of his life. He
needs to know the
objectives to¬
wards which his life is
moving.
He needs to have his own sense

An¬

I

A

over

few

<

tell

how

you

bad

the

on

country
was they visited.
Nothing did they
find
that was
good.
They are
coming back to the
good
old
.

U. S.

A., and if the Statue

erty

ever

have

turn

Great

achievements—be¬

to

of Lib¬

them again it

sees

big,

will

CONDITION

very

OF

SALT

SALT

LAKE

LAKE

AS

OF

convenial
work

.

.

.

friends

that each

so

the

across

.

What

two

Total

words

is

.

.

?

55,730,110.67

Loans and Discounts
Stocks

........

.....

Other

in

1.00

1.00

assets
...........

what

is

our

the

of

in

1

our

15,023.85

our

natural

Total

$108,712,781.94

very good
to
this country in terms of raw ma¬
But we haven't got a

7,498,757.32

$104,124,510.01

Investment

David 0.
McKay, President

||

Reserves

Orval W.

I

used

to

was

great,
and

raw

think

Brazil has
as

it

a

elsewhere
into

came

through

Range

ore

the

in

steel

materials,

that the Me-

unique, but it
deposit of iron

probably,
lies

almost

as

tubs

They

and

lands

4,588,271.93

Adams, Executive

Insurance Corporation

Vice President

mentioned

were

had

few

very

bath

no

and

the

a

to the

try

two

ratio

a

today

of

great

has
to

men

lower

a

men

our coun¬

index

of

it

should

to

until

very

We used to think it was
the Near East oil came

production.

Not along ago

distinguished

a

geologist told

media

one

the

are

three

one
might speak
recognizable.

as

Diseases of Free Enterprise

Now

let

no

look

us

side of the

What

is

strong but

so

disease

some

are

which

the

pos¬

attack

can

the

free enterprise system and destroy
it from within?
>

The

first

is

the

failure

the

on

part of the businessman honestly
to live up to the code of vigorous

competition.

Free

markets

They

enterprise and

must

are

go

hand

the obverse

of the shield.

You

in
and

cannot

have free enterprise for long un¬
less you have free markets.

that

whoever

takes

I say,

steps

any

ing effect of vigorous competition,

s»d

com¬

true, it is

on

our

way

a

give

us

of life, and

pause.

I

regret

of

that

background,
appear

on

confuse production with
ultimate values in life. I say

increased

production

which limits the corrective, polic¬

and

women

may pursue the good
It is what you do after pro¬
duction that counts.

Surely, in

every

ultimate

life there must

value,

some

possible.

man

does not believe in free,

unique thing about
free enterprise system is our

method of distribution. Until you
have come to know the economies
of other
countries, you may not
our

who

man

makes the discreet

telephone

calls

before

puts

has

he

taken

an

to

in

axe

a

the
and

competitor
new

laid

price
it

to

the base of the stalwart tree, free

enterprise; because the power to
determine
prices will never be
allowed to stay long in orivate
hands if he persists in that prac¬
tice.

Whoever tries that is asking

for the

nationalization, the social¬
ization, that he so abhors.
I sometimes

even

wonder in my

inner heart whether the business¬
man

who

sabotages the competi¬

tive system is not a greater enemy
of our way of life than the Com¬

that he cries out against,
he does not understand

munists
because

free enterprise when he does
and

he is

that,
deliberately injuring it.

The second
nessman

second

fully appreciate how unique

A

men

life.

more

is

that

productivity exists solely that

our

there

other

There

their

I think it may be because busi¬

The

that

the

at

proposition.

tree in the forest

enterprise.

out

some

quickly

tech¬

nessmen

be

of

all

us

very
few great men
the national scene.

and

com¬

attributes

modern

given

that out of this vast world
of production of which we are so

that

people

for

than

that

into

millions

of

in

population
our

say

the

con¬

management.

reverse

population,

unique

a

of

savings

mon

and

Commission)

in Iowa.

This is

the

together

hand.

out

nonsense

this fantastic method of

free

total

no

world,
gathering

and

and that is the ultimate.
Produc¬
tion is important only as it makes

was
talking about.
probably just as good
lands in the Ukraine as there are

it;

on

tribution of America to the

you

that my friend Jesse
Tapp
(Chairman of A. B. A. Agriculture

oil

accountant.

Adamses

I

good that you are seeking on this
earth, that you wish to pursue,

are

sits

me when I found that in
the entire country of
Thrkey there
wasn't
a
single certified public

suspect that if
scientific poll today

Madison.

It isn't just the rich farm

Why?

and

home to

this

were upon

Turk

brother, his sis¬

about letting anybody else handle
his property.
That was brought

But

televisions, and they
produced Washington and Jeffer¬

the

unde¬

veloped.

There

Member Federal Deposit




I

sabi

.750,000.00
1,500,000.00

Total

;

and

2,338,271.93

and

matched

world.

Mesabi,
.....

Undivided Profits and Reserves

Capital

isn't

isn't.

Capital Stock, ConunOn
Surplus

thing

industry

$96,625,752.69

Total Deposits

Total

that
the

LIABILITIES

re¬

was

terial.

Demand Deposits
Time Deposits

way

individual

his

that

when

great

was

the forebears who

proud,
God

sources.

land

Those

fatal blunder.

a

country

If that be

that

enter¬

one

great many

a

ter, or his wife how much he is
worth, let alone telling a certified
public accountant. He puts it in

,

identical.

The

will attack it.

mentary

source

and

economy

Surely it is not

,

all

is.

ours

sible diseases that

S. Economic

of life?

80,100.00

Banking House
Furniture and Fixtures

is

tremendous vitality and dynamism

17,819,672.59

.......

and

Greatness
Yet

found

blessings.

Source of U.

$90,797,983.50

em¬

as

wouldn't tell

friends, that's

had

world

of

common

during my mis¬
to Turkey.
There is wealth
Turkey, but it is not harnessed

in

tion that he is apt to consider
pro¬
duction the end of life,
and, my

nology

the

doing.

$27,915,339.58

.

in

bor¬

that it is
not

not

are

before

done

our

businessman is so enamored
and so infatuated by the glamor of
our prodigious
figures on produc¬

great

7,152,533.25

Liquid Assets

Com¬

is

I found this out

the

existed

has

in

man

its characteristics?

are

he

Municipal Obligations
►

Alfred

retention

organization and the equity meth¬

of

First, of all, unlimited produc¬
and. productivity; and those

mander, Allied Powers in Europe
the backing to do the great
job

1955

way

northern

way

together elsewhere.

worked

General

Supreme

gave

the

that

od of accumulation for

is

atmosphere in which

der, but in the
ployed here it

son

Gruenther,

our

that

This system of free enterprise
really is unique on the American
Continent. We share it with our

took

M.

Less)

or

of

about

But I think we
sometimes fail to realize how un¬
usual
is our corporate form of

this Con¬

Free Enterprise Unique to the
American Continent

people who

CITY, UTAH

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

hope

thing

around the world.

Mesabi

great country works with joy in
his heart and hope in the future.

Economically we took the world
through two wars.
We are the

CITY

JUNE! 30,

the

are

on

encouraging

industry from
earnings,
and

re¬

life. In this system of free enter¬
prise we rely upon rewarding the
individual in
proportion to his
effort, and surrounding him with

in your resolutions

the world.

First National Bank

Quality in Creation
Capital

free enterprise is its
regenerative
quality in terms of the creation
of capital.
Capital is formed in

paint his face

of

earth.

We

the

people

essence

There

wonderful.

natural

put

can

isn't a man in the
tell you precisely why
the United States is great. We are

OF

The

see

concept of what to do
God

American

Our

United

Joe to put
try to get a

or

sion

around.

wonderful

to

States!

OF

to

The "have-

used

ore

lot who
REPORT

Regenerative

tion

every

wants

overtime

prise the savings of

the

the

Europe,

and we will soon be home."

businessman

most
sense

woman

job in order that she may
achieve that particular
thing that
desires, and that is important
in our incentive system.

ago

—this is not what I set out to
say
—a year ago
my wife and I were
on a steamer and at the
next table

of Values

Convention of the American
Bankers

Association, Chicago, III., Sept. 28,

as to the why
doing. We rush
airplane
and

Businessmen

mov¬

81st

try to

to

time
about the important.

by Mr. Randall before the
of

had

hours

me

Session

and

t

old

Chev

new

people.

to

down

that

today to--*

nual

has told her he would see the first
half-mile of any museums that she
should select. He has asked her to

tically alone. We are so busy do¬
ing the immediate and the urgent

264,

to sense, through
my personal exnerience. the
hunr
ger there is in the world

Second

Europe, much against his will. He

variety of busi¬

live

to

our

He

no

a

the

Chev to park in the
who reads the

new

some

No, it is something in the hearts
of men.
It is a spiritual quality

things nobody ought to

16

just been let for a German edi¬
tion; it has been printed
serially
is

about

you as super¬

a

in

American businessman sound off.
The wife has dragged him over to

myself to the

isn't

what

development

she

tinent.

UP-

sit

airplane

years

That first book has
appeared in
French edition; a contract has

It

the

more

world

a

know

train to train; and we
go home at
night and tell our friends that we

which I had forgotten I had said.

Australia.

hear

and had

with

a

the world

ing thing to

and

it

free.

was

from

stranger,
admit, bawling me out
and tellingme what a
sap I am to

in

select

may

see

mostly, I

a

address

don't

haven't

.

are

business

common

riences of my life. I can't tell you
what it has meant to me.
My first
is three years
old, and not
a
week passes but what I
get a
letter from some total

on-page

in

be taken

can

Europe.

Range iron

make up our minds
of what we are

expe¬

so-and-so

high

of

things he wanted to see; but
she said no, he would want to see

We

book

have said

bankers

nessman.

been

rewarding

So

ordinary,

and its sequel, "Free¬
dom's Faith." I am getting in the

It

in

things, and I regard

So I wrote the "Creed for Free

early.

do

we

men.

Enterprise,"
commercial

leave

of this. Bankers
themselves.
You

than

by free
enterprise.". He said, "This is your
bair shirt, my friend. Put it on."
you

I

lacking in the

\

;

■

better

expected

No,

I

businessmen are forever yelling
about free enterprise, and no one
of you knows what
you are talk¬
to

a

the

alongside
The

area.

sources, nor is it just the concept
of freedom. The American Indian

a

group

have just come back from
Europe
on a steamer.
You sit on the prom
deck or in the bar of
any steamer

time

wants

deposits in most of the

all,

life of the American businessman
is a period of reflection and inner

me

said:

and

moment

in

part

jalopy

great oil

understand his relation¬
ship to the world about him. We
boastful

'

•.

of the incentive that makes
free enterprise
system tick.
The worker who
parks his

nots" may soon have.

businessman,

'

ternity. I think that the advertis¬
ing of merchandise has an im¬
portant

countries

to

are,

he

me

how you have done.
needs

■'

'

.

advertisements

subsidies, and (3)

unless you know what
you
are
trying to do, you can't keep
score.
At the end you don't know

likely that many of you
will be sand-bagged into
writing
a
book.
I hope more men will.

bear

1

•

system of distribution of goods
is,
I make my bow here to the
gentlemen of the advertising fra¬

"a

to

cause

It is not

writing a
as a businessman is a strange
enough phenomenon in itself to

tic

(2)

•

of

makes American free

enterprise tick.

I think the fact

of

book

of

ascendency

'

•

•

and

I

because
Clarence B. Randall

'

•

the fields without thought of maintaining fertility
by putting something back in.

should

a

v

crop

happen to me
wrote

.

Enterprise

Warns free enterprise is "a gift of
society" and

if businessmen

away,

and cruel. That
this

economic

our

protective tariff.

thoughts

i

ascribing

the code of vigorous
competition,

pected to bare
one's

•'

■

(1) unlimited production and productivity, (2) an efficient
system of distri¬
bution, and (3) a regenerative quality in terms of the creation of
capital. Lists
as the
possible diseases of the free enterprise system: (1) failure to live
up to

of the civ¬

ilized

■'

.

spiritual quality in the
American people," prominent industrialist characterizes
free enterprise as:

facing

ers

.

Chairman of the Board, Inland Steel
Company, Chicago, 111.

day

my

'

'

By CLARENCE B. RANDALL*

time that this awful moment

4some

■"'<

:

to

who

failure of the busi¬
doesn't measure

up

the

responsibility side of free
enterprise, which requires stand¬
ing on your own feet, is the man
who in

one

way

or

another seeks

government subsidy.
The ingenuity

of the American

Number 5470

182

Volume

.

The Commercial and Financial Chronicle

.

.

of

manufactured

which

apt to catch it next.) I said, "You

out of the govern¬
ment into his business and not get

they ship each year to Venezuela.

farmers from North Dakota roared
when oats came into the United

have faced representatives

caught at it is infinite.

not

States from Canada.

America, but nobody has

in

businessman

getting

finding

of

ways

money

They are

resourceful.
11
many forms. One or

extraordinarily
takes many,

obvious

two

will

ones

illustrate

the point.
One

which

I

be
strongly opposed to is the "Buy
America" policy, which taxes all
of
the
American
taxpayers
in
order to funnel profits into the
happen

to

hands of certain corporations and
into the areas where certain labor
groups

the

employed.

are

vast

spent

of

sums

armament

on

matters

Reflect

other

and

the Federal

by

on

being

money

Govern¬

ment.

Presently
purchase of

the

policy is that a
commodity which is

a

had

I

the

long

products

(1419)

privilege
the

to

ago

Farm Bureau. I had

day

on

course,
farmer
to

this
in

which

was

out'

I

to

said, "Of
the

buy

preserve

Wisconsin
he

in

the

state

does

shuts

out

American

Holland
all

do?

pick
tain

from

don't know it.

you

it.

on

one

the

state

citizen who pays

There is

with the

people here before I get through,
so don't laugh too soon.
You are

is

a

of

of

come

I

no

men

loud.

am

getting lathered

up

here.

;

said

still

in

in

another

believe

American

free

enterprise

license;

context
that too many

industry think
as
a
hunting

something they use to
they want for them¬
Or, if I may change the
metaphor, too many businessmen
crop the fields of free enterprise
as

what

get

ing the fertility of the soil by put¬
ting something back in.

Let

me

enterprise.

another

I

have

talked

of

the

payoff is

direct and obvious ways in which

The

consumer

a

the forgotten man.

businessman

terprise.

Free

turn, therefore, to the

next part of this approach to free

The ultimate
consumer.

of

I

selves.

Neglects of the American

to protect

damaging

have

and

without any thought of maintain¬

were

friends, reflect
way

few minutes about the
neglects
the American
businessman.
I

to

consumer.

quiet, thoughtful
the freight is not

I didn't intend to.

segment of the American peo¬

segment.

lot of

behalf of the

I

of the

heard.

which

to

Washington

Businessman

without

ple

Then I said to two fellows from
a

in

I say to you, my

Does it make

(I will hit

you fellows
quite happy to

entitled?"

happy?"

North Dakota

on

in

associations

The voice of the

the check for the farmers

them

work

The voice of self-interest is

Cali¬

said, "Are

California

up

from

they have long thought they

I

said, "You
wheat farmers are picking up the
check for the dairy farmers, only
you

I

fruit

see me

in North Dakota in order to main¬

Holland

milled

flour

wheat."

in

out

citrus

any

fornia."

has long thought he

entitled. To do that, we shut
dairy products from Holland.

What

You wanted

my

manufacturers

them shut out. Canada said, "O.K.,
shut out the oats. Then we won't

perfect field

a

subject.
want

we

talking
American

of

In

31

I

damages free

want

to

now

en¬

enterprise,

recent

history

has taught us, is a gift of society.
It

didn't

privilege

from

come

man-made.

It

is

God.

bestowed

by

Continued

speak

men

on

upon

It

is

as

a

free

sb-

page

33

offered from the other side of the

should be

ocean

purchasing
is

accepted by our

agents

only if there
margin in favor of the

10%

a

foreign producer. Surely the great
corporations

of

America

struggle along without
their

over

can

10% edge

a

foreign

competitors.
You, the taxpayers, are you quite
willing to let the national budget
take this

than

more

10% increase

because the goods may
be bought in the lowest mar-

every year
not

'ket

but

be bought at such
the American producers
put on it.
It makes no
may

price

as

wish

to

sense

to

The

first

second

or

this is the subsidy

yield to
see

r

me.

no

our

in

man

cousin

to

to shipping.

have

country

;Ji

I

desire to

my

sound

a

hat
fnerchant marine in
require it to.-the Iextent
think
we

the

war.

bf that

size

fleet

be

can

as¬

certained. I think- the subsidy: to
support that fleet should be'openr

ly; arrived

-noUneed.
the
:

and u publicly-

at

can

It is concealed in

sidy

to

which

half

called "50-50"
that
wherever

requires

American
of

supplies

them

shipping

nations

be

carried

in
.

Anybody who

knows

the world

of

abroad

move

must

American bottoms.

knows

indirect sub¬

an

shipping

on

there, .so that
see what it is.

up;

taxpayer

every

an-

I think it should be

blackboard

that

that

:*:vv

obtain the wherewithal to balance

their

trade

Denmark.

with

I

others.

have

just

Take

been

in

It is

ject there.
'

Denmark.

Denmark and Norway
merchant fleets,

have
but

a

very

sub¬

sore

important
will

we

their

indirect

let

not

because

way

them

subsidy at

earn1

give

we

your

an

expense

to the American ship owner.

We

did

it

during the

even

riod of Marshall aid.

pe¬

I don't know

how it is at your

house, but at my
we have something to
give to the Salvation Army we let
the Salvation Army come and get
house when

it.

We do not hire

send

it

Army.
aid.

down

But

We

and

get

take it

it.

Large

and

Salvation

didn't do that with

we

wouldn't

to

taxicab

a

the

to

We

them

let

insisted

them in

our

come

that

own

we

ships.

of money that were

sums

appropriated

in

aid,

which

you

Banker's

fellows kicked about, went not as

holiday in New York

aid to foreign countries but as aid

the

to

American

shipping indus¬
try. Personally, I think that is a
questionable practice.

Recently

No High Protective Tariff Needed

correspondents visited

Then—I must get in my favorite

plug—it seems to
sabotage of

me

rect

system
ness

when

an

that it is di¬

the

operate* without
a
protective tariff.
I
won't

labor this

point, but reflect

I say

you

that

segment

by

a

some
can

of

the American

it.

people

other segment of the Ameri¬

will,

States.

restrict
oil

When

do you do?

its

the

to

you

do

United

that, what

You make all of New

England take
because

You can, if
the
flow
of

a

higher

fuel

will

You take away from

power

cost

cost,




in

officer of

Like

sales

most

delighted

one

our

of

our

city with

visitors, they

with

glow New York takes

the
on

special

after dark.

During the day, the wife made the
customary tours—up

Fifth Avenue,

through Rockefeller Center—that
fascinate
ors.
a

Her

so

banker's

our

fair visit¬

holiday.

He spent most

shop with
tan.

of

many

husband, though, enjoyed

us

of

here

He reviewed

more.

the state of

Jersey $25 million

an

wife.

were

for it.

pavs

Venezuelan

New

on

cannot benefit one

high protective tariff unless

people

you

busi¬

cannot

high

his

enterprise

American

•

if

are

we

trying to help and make strong as
our
allies depend on shipping to

-

f

the

folio with

our

He

was

Transit

day talking

Chase Manhat¬

his'bank's port¬

officers, and made

a

our

departments.

particularly interested in

our

Department which handles

his bank's

daily cash letter and

our

Custody Department which holds
many

of his bank's securities.

*

States

get

opportunity to

connec¬

their

us

correspondent.

lj your bank is interested in practical
correspondent ser¬
vice, why don't you talk to the people
banker-to-banker

•

•

•

i

•

i

THE

better acquainted with him and

with his

bank's

helpfulness

on

terms

problems. Mutual

practical banker-tois

a

big

part

correspondent services. It's
the

maintaining banking

tion in New York have named

at

welcomed the

V7e

banker

every

at

complete tour of

reason

of

our

of

why Chase Manhattan is

the banker's bank—and
half

of

part

Chase
Manhattan

the

banks

in

why nearly
the

United

BANK
HEAD

OFFICE: 18

Pine Street, New

Member Federal Deposit Insurance

York 15

Corporation

«

The Commercial and Financial Chronicle .'..

(1420)

Situation

Regarding the National Banks

At June 30, 1955, the total assets
of national banks were $108-bil-

lion,

large

to keep up

By RAY M. GIDNEY*

notes

out

of the national

banking

the

legislation regarding national banks, and
lation of bank holding companies.

1954.
were

36.6%

of

re¬

sources; secu¬
rities
40.7%

(of

wh i ch

four-

fifths
U.

were

S.

Government obligations); cash and
due from banks 21.3%. The
cap¬
ital position continues to show im¬
provement.
were

total

will maintain themselves in

ation reserves of $593-million for
loans. If this valuation reserve is
added to capital
accounts, the re¬
sulting total is 8.4% of total de¬
posits. On June 29, 1935, 2.141 na¬

preferred

reported

Class

stock

amount of

(RFC)
in
$503,914,000. From

ords available

in

our

A

the
rec¬

office,

this

ability

strong

As above noted,
the sale of additional capital has
been very well received in prac-

preferred

issued by national banks
tired.
In
recent
years,
banks have been

stock

were

re¬

national

making impor¬

additions

structures

ditional

to

their

capital

through the sale

stock.

This

of ad¬

is

process

continuing, with ready acceptance
of

the

offerings

and the

.taken

public.

together

worthy

high

by

stockholders

This is good, and
with

the

praise¬

practice

of

retaining

proportion

of

earnings

additions

promise

to

that

capital
our

a
as

recent
case,

our

*An

before

address
the

Bank

Convention

by

Annual
Division

can

and

of

the

Comptroller Gidney
of the Na¬

Meeting
at

the

shown

in

1928

"Total assets at close of year.

$30,259
3,684
1,351

''Total capital accts. at close of year

$97,240 $110,117 $116,151
6,329
7,410
8,104

$4.47

2,193
$2.26

3,068
$2.79

3,226
$2.78

$34.65

$41.41
1,845

$39.81
1,996

_______

988

$3.27

$26.83

$100 of capital funds...

1,337
$1.38
$21.13

$100 of assets

Per

$1.68

$1.72

$24.90

$24.63

363

856

1,223

1,230

$1.20

$0.88

$1.11

$1.06

$9.86

$13.52

$16.51

$15.18

—72

Per $100 of assets

+26

+149

—151

—$0.24

(income)

—$0.14

+$0.13

—$1.98

Per $100 of capital funds

+$0.03
+ $°-41

—$2.05

+$1.84

]

Per $100 of assets

[

[•

$100 of capital funds

256
-J $0.26
[$4.04

J

♦Net profits before dividends

466

532

$0.42

$0.46

$6.28

$6.56

626

$

606

847

291

Per $100 of assets

$0.96

$0.65

$0.55

$0.73

Per $100 of

$7.90

$9.89

$8.18

$10.46

275

capital funds

"Cash dividends

195

230

Per $100 of assets

$0.64

$0.24

$0.25

$0.26

Per $100 of capital funds

$5.30

$3.63

,$3.71

$3.70

§331

§547

"Retained

earnings

300

,

96

§396

Per $100 of assets

$0.32

$0.41

$0.30

$0.47

Per $100 of capital funds

$2.60

$6.26

$4.47

$6.76

fExclusive
reserves

on

of

loans

transfers
and

the

81st

American

Annual

Bankers

Association, Chicago 111., Sept. 26,

1955.

to

wilh

^Includes funds transferred
amount

of

assets

1950, $33 million
in

reserves

for

charged off
in

bad

and

securities

but
gross

to

from

reserve

expenses.

reserve

against

and

valuation

Income

for bad

such

debts

bad

1954

reserves.

taxes

debts and

reserve

1953, and $1(K> million in
debts

for

and

not

transferred

(Taxes

called

valuation

accounts.

to

would

separately.

reserves

888

effect
have

a

recent

$100 of

per

years

were

they were in 1928,
also were lower,
earnings from operations
were
almost as high per $100 of
assets—$1.06 in 1954 against $1.20
in
1928.
In
relation
to
capital
funds, they were much higher in
1954 than in 1928—$15.18 against
$9.86.
However, the figures are
not strictly
comparable, for in¬
expenses

net

taxes

come

not

were

shown

as

a

separate item in 1928.

Therefore,
profits before dividends may

net

be

a

fairer

than net

measure

of comparison

earnings from operations.
have
very important item in

Income taxes in recent years

become

the

operating

tional

statements of na¬
They totaled $2561950, $466-million in

banks.

in

$532-million in 1954.
Net profits after taxes and before
dividends were $.73 per $100 of
assets in 1954 as against $.96 in
1928.
But the comparison of net
1953,

and

profits

capital

to

funds

is

much

favorable to the later years,

more

running $8.18 in 1953 and $10.46
in 1954 as against $7.90 in 1928.
The average figure of 1953 and
1954 would be $9.32 per $100 of
net capital funds. In these figures
for recent years are included the
net

funds

of

debt

transferred

to

valuation

and

bad

reserves

amounting to $88-million in 1950,
$33-million in 1953, and $106-milin

lion

Additional

1954.

less

the

million

net

in

increase

absorbed

a

fair

had

have had

would

taxes

transfers not

the

We

with

note

recent

of net

income

years

a

to be
been

paid

this

the

In

the

Legislation

field

of

^

federal

legisla¬
tion, we are pleased that Congress
has enacted the important amend¬
ment

to section 24 of the Federal

Act

Reserve

sible

which makes it pos¬
banks to make

national

for

amortized

real

estate

mortgage

loans with final maturities not

ex¬

ceeding twenty years, and to make
amortized loans both in that class
in

and

those

with

ten-year

ma¬

turities up to 66%% of appraised
valuation instead of 60% as pre¬

viously.

The

legislation also

ex¬

from- six to nine months,
maturity allowed for residen¬

tended

the

tial construction loans.
these

We believe

changes will be helpful.

desirable,

to

in

the

banking bills passed the

They

House

not receive action
of

Representatives.

V': + •+•'

are:

.

•

(1) The bill for greater flexibil¬
ity in number of examinations of
national banks

which will permit
Comptroller to waive one ex¬
amination in each two-year pe¬

the

riod.

(2) A bill relative to the number
national banks

of directors of

the
of

bank

state

has

business

or

within

a

specified

distance from the bank's head of¬

fice, which would increase the dis¬
tance from 50 to 100 miles and re¬

duce the number who must reside

within

the

limits from

state

or

prescribed

three-fourths to two-

thirds.

(3) The bill making cumulative

that

I

has

mandatory.

say

it

We favor the enactment of these

bills

and

hope

they

will receive

and is still highly

build

capital

Continued

funds

on

page

Agencies

Banco Credito Y Ahorro Ponceno
Founded -1895

Head

Off ice

-

Ponce, Puerto Rico

Moyoguez

^Specialize

in

letters of credit
and collections
in

expanding

Through

our

system,

all

Head Office and

our

extensive branch

Puerto Rican

Market

commerce

IN NEW YORK CITY
51

Broadway—Phone: Dlgby 4-1140

153 East 116th St.—Phone: ENright 9-3425

IN PUERTO RICO

Ponce, Son Juan, Mayaguez, Arecibo,
Guayama,Cayey, Utuodo, Santurce, Coguas,
Cobo Rojo,




Arroyo, Aibonito, Aguirre

anco

the

and

principal

industry

on

areas

of

the Island

agriculture,
are

covered.

de ftoice
PONCE, pueiyo tico

YOUR UNK WITH PUERTO RICO

Member Federal Deposit

Insurant* CorporeiUht

re¬

within which
its principal place

siding in the

voting for election of directors of
national banks optional instead of

period.

feel

we

Three

Senate but did

proportion

larger

earlier

because

been necessary,

New York

.

,

Federal

in

profits has been retained as
to capital than was the

in

banks have been do¬

ing a good job in building their
capital by both methods.

made.

approval that

additions
case

easier to

a

reserves.

for

Includes

portion of these amounts had the transfers not been
made.)

valuation

other

including net losses charged to these

earnings

the

than

gross

million

cluding bond profits, etc.)f

Per

1954

$36.69

.....

Per $100 of capital funds
*Gross expenses

*Taxes

1953

1950

figures

lower

and

(* Indicates amounts in millions of dollars)

Per

the national

Year 1928

gross

Earnings/ Expenses, etc., of National Banks for the Years Ended
December 31, 1928, 1950, 1953, and 1954

Per $100 of assets...

with

assets

etc., for the years 1928, 1950, 1953
and 1954 to which I shall briefly

♦Gross earnings..

Comparison

The

While

refer:

have

A

1954 annual report

our

banks

$Total taxes included

tional

satisfactory

notwithstanding

This should be the

years.

for

maintain

n g s

funds, gives

banks

made, it is usually

sell additional stock at good prices
where that is desirable. We think

tabulation of earnings, expenses,

Per $100 of capital funds
*Net asset losses or recoveries (in¬

pre¬

tant

but holds clarification of present law desirable.

included in
a

ferred stock and the aggregate par
amount
of such
outstanding.
A
few days ago, the last outstanding
R.F.C.

regu¬

for recent years
compare favorably with those of
the pre-depression year of 1928.

'"Net earnings from operations
Per $100 of assets

of

approval of further

growth of competitive factors and
increases in costs of operation. We

represents the peak in number of
banks
having outstanding

shares

expresses

Is non-committal regarding additional leg¬

to

ni

e a r

tically every instance, and bank
stock prices are in better relation
to intrinsic values than over many

Total capital accounts

banks

mergers,

capital position.

$7.73-billion, or 7.82% of
deposits, not including valu¬

tional

in mind in determining dividend
policy. If a large portion of earn¬
ings is retained, new sales of stock
may not be necessary; but if more
generous dividend disbursements

recent and proposed Federal

figures of

June 30,

Ray M. Gidney

on

are

islation affecting bank

than

Loans

✓

Comments

years.

sys¬

tem, but less
by only $854million

the progress of recent

bank

of

influenced

by dividend
disbursements,
and
that bank
management may well have this

Comptroller Gidney reviews data regarding the National Banking System, and

most$7-billion

value

market

is

stock

mergers

assets

the

that

which took alof

with growth of deposit
However, we recognize

liabilities.

Comptroller of the Currency

down from $116-billion at
31, 1954, because of certain

Dec.

Thursday, October 6, 1955

Member Federal Deposit Insurance

Corporation

40

Volume

182

Number 5470

Continued

from

.

.

The Commercial and Financial Chronicle

.

sensitive—let

am

31

page

(1421>

.

about:

A Creed for free
riety, and what society gives, so¬
can take away.

ciety

learned

I

the

this the hard way

in

Most

steel

industry.
I had made
friends in the British steel
industry, through
my
work ;in
earlier years for the government.
many

All

of

those

sudden

a

fellows

found themselves out of business.

working for the gov¬
ernment.
They had been nation¬
alized; and it was a terrible shock
They

were

tome.
5

eye

that

say

thing is
ciety

-

.

I

So

this

take lit

and will

can

away

does not fully

if the businessman
measure

so¬

coun¬

man

obligation
to

level,

Eisenhower
have

national

supported

the

the

business-

level,, at

state

level, in making
form

work.

Before

nitwit,

the

ington—I

of
he

am

one

our

the
Re¬

government

condemns

bureaucrat

the

Wash-

in

more

men among

New Walston Branch

dedi¬

the bu¬

modity

I

them at their

see

of them now, I

leading stock and

exchanges,

6:00

o'clock

when

afternoon

the

Saturday

opening

of

office

120

at

are

boys

South Jersey territory.
,

under

the

are

not all geniuses.

N.

commodities.

But at least they are

busy, and the

our

businessman
tells them

at

stays

what

a

home

and

mann

new

Carl T.

and

will

be

Camden

Walston &

H,

elected

Rosenthal

Zimmer-

office

and bond

brokers and

advisers.

Mr.

Co.,

one

registered

firms

in

the

Rosenthal

&

Exchange

Co.,

Rosenthal has been
'4

graduation from Dartmouth Col¬

and

lege in 1929.

world,

to the social respon¬

up

sibility which he must assume if
is

he

have

to

the

privilege

of

working for himself.
What

those responsibilities?

are

to maintain

Obviously,

American way of life.

That

the

means

the community to see that the

in

in which his plant is located

area

is

good place for the young

a

re¬

his fam¬
ily. That means support of the
schools, the churches, the hospi¬
tals, all of the community serv¬
ices.
Those are all a part of the
GI to bring up

turning

price of doing business.
When
new
a

a

into

goes

company

where it has

area

a

had

never

plant it knows this.

Right off

builds

theatres,

the

it

bat

churches, and schools; it brings in
the visiting nurse, and so on. But
when a plant is located in a great
metropolitan center the need of
the
underprivileged
is
not so
clear, and the man shrugs it off;
yet it is there.
Because he
shrugs it off, the community de¬

and

teriorates.

is

there

Then

community

the

obligation to higher education, on
which I feel very strongly.
Our
whole way of life depends upon
maintaining freedom in education.
Industry has been slow to see that.
We seek out the ablest young men

We want young men

find.

can

we

of

creative

with

imagination,

quality, leadership, learning. We
want those from the technical and
from the liberal arts institutions
because we must have both. Yet
only recently has industry begun
to sense that there is an obliga¬
tion

it

on

maintain

to

direct

by

the universi¬

corporate grants to

cross county branch officc,

the

is

govern¬

saves

time
to
my
company
and
to my service on Presi¬
devoting

Chicago,

half-time
half-time

learned

my

staff.
the

Eisenhower's

dent

to

I have flown
between Washington

week

each
and

"Our 100% Q/katioiuU System

For two years

ment.

pays

have
of

I

much about

us$50,000 annually...

for itself

every

3 years!"

ways

—

in

long

Not

businessmen.
walked

get

I

I haven't seen
going

are you

this Potomacitis and

over

get back on your job?"

Sitting in

any

the

to

rascals

congenital

right

on

the

"My

go

it is to

I

would

come

see

what the

and

only
a

him,

to

say

yesterday

were

asking

in
me

who

businessman

down and sign on

and

help solve the problems."

Imme¬

diately

in

find

you

presence

of

man, a man
company

is

you

the

whose

are

First National Bank In Yonkers,

Yonkers, N. Y.

essential

to

its




We

com¬

program

with 16 new

National

Class

32

Mr.Sheldonl.Pollock,Bookkeeping M a Chatrman of the Board.

,

.

chines.

...r

We

°

now

use

exclusively. Our
simplified
operation has been justified.
equipment

faith in their durability and

"We also

use

4 National Proof Ma¬

chines, 15 Window Posting Savings Ma¬
chines,

17

Bank

26
Mul-

Teller Machines,

National Adding Machines, and a

Ma¬

3 years through better utilization
personnel, simplified operator train¬
ing, maintenance and depreciation re¬

Branch

ductions, and elimination of overtime

tiple-Duty-Typewriting-Bookkeeping

every

Machine to handle internal records. Six¬

of

teen

more

National

are

Offices

soon.

All

Teller

Bank

scheduled

chines

for

these

our

are

Nationals,

providing strong audit control and effect¬
ing gratifying economies.
"We

are

very

proud of

our

newest

Branch Office in the Cross County Shop¬

at his
pres¬

OFFICES.IN

Whether

your

in the

importance to

our

management to

your

bank is large

or

small,

time- and
money-saving advantages a National Sys¬
tem provides. For the complete story on
what Nationals can do for your bank, call
you,

treme

too,

can

nearby

trained

gain the

National

systems

yellow

many

representative, a
His number is

analyst.

pages

of

your

phone book.

provide the best possible service at the
Center. That's

why

equipment in this

using National
office.

i

^

we are

new

x"-*

,

/

, ,

' "
u. s

1»at,

off/

"

j

"Our

100% National System saves us
$50,000 annually in reduced operating
costs, an annual return of 33% on our
investment. The system pays

THE NATIONAL CASH REGISTER COMPANY,
949

payments."

ping Center, at present the world's
largest shopping center. It was of ex¬

for itself

94

COUNTRIES

G/kattonal
\ ^

V, Acmntmo MACHINES

Ifgl1ADDING machines, <A$H*EMrml§0j

the

indispensable
presence

ag0f

pleted the largest part
of our replacement

National

shoulder

friend,
knew

them;

and tap that man

Washington they
if

of

is.

over

years

what

tell

all

nitwits,

answer

And

1940," writes Mr.

mWI Pollock, Chairman of
MPf
gjtthe Board. "About 4
fm

Washington;

in

are

how simple

WW

highball, lis¬

businessman

they

tional machines since

train buffet car,

after about the third
ten

affinpng "We have used Na-

Then another

around lately."

friend said, "When
to

ago

club and a fellow

my

said, "Been away?
you

the

relationship

the

businessman

the

as

upon

there

Then

modern in design

leadership.

new

of

as

National System it relies upon.

great
institutions of
which the whole
American way of life rests, be¬
cause from the universities comes

ties,
the
learning

Center, is

located in the very center of Westchester's famed Cross County Shopping

9, ohio

stock

investment

in the securities business ince his

of the larg¬

securities

Guardian

of the New York Stock
of

t

been,

He is a Partner

firm

as

has

of

Director

a

Mutual Fund, Inc.

associated with the

investment

est

commodity

crat on that basis.

B."

Charles

representatives.

lousy job they

doing. I will take the bureau-

are

Black,

Marple, David Levin,* Donald M.

It is

anyway.

scarcest

of

one

Alan

God
Patterson

distributing genius,

1

.

Elected Director ..;,

of Harry

management

back
Morton

They

expanding

Broadway, Camden, N. J.,

playing the 19th hole.

has been very, very careful about

list of

growing

clients in the rapidly

E. Strickler.

home

firm's

the

serve

the

announce

new

a

office in Camden to better

new

com-

North

at

desks

Switzerland, decided to gpen a

-CAMDEN," NV J.—Walstoir &
Co., members of the New York

Saturday is the busiest day among
the
bureaucrats
in
Washington
that I know.

'with offices coast to coast and it*

?

talking

and other

that. There

on

on

found

to

his part at the local

take

at

world

business

Few

policies. Reflect

an

publican

;

precious

gift of society, and

a

elected.

his

is

the

of

President

wanted

be

have

him-

ask

reaucrats than I know in business.

if that man should take his
off the ball for one moment.

try

I

cated, selfless

Enterprise

ervation. Disaster stalks the

him

:self if he knows what he is

33

The Commercial and Financial Chronicle

(1422)1

II

..

Thursday, October 6, 1955

.

Prosperity, Policy, and Prudence
'

The momentum of recovery

By C. CANBY BALDERSTON *

has

been carrying business upward to
record highs that are to be antici¬

pated when

a

Reserve

The

System
is

growing economy is

on

should

be

prosperity, lists the factors which give effectiveness

en¬

vert

joyed but not
abused. /So, if

store

may be timely
to ask what

bearing

business decline into recovery.

a

prosperity

financial

Says monetary policy itself

Sees restraint of unwise

structure.

policies required to

to

depression unless there is

prevent

or

speculation

rent

ad¬

ture

business

prospects.

instance, is the
rate
C. Canby Balderston

of

to

ex¬

i

n

of

of

be maintained and the period

sion

has

restoring prosperity. It is impor¬

Credit

sound

'The

loans.

fifth,

and

in
expansion.

of

reappearance

The

early, the

Our
the

recovery.

experience

results

policies

of

is

followed

Kingdom

in

similar

and

in

in

recession
Korean

National

by Vice-Chairman Balder¬
Annual Meeting of the

the

Bank

Division

at

the

An¬

81st

line

with

the

United

Continental

during the slight
that followed the post-

boom.

countries,

In

the

^

most

of

tions.''

inherently sound busi¬
structure, unweakened by
speculation.

re-

in
prosperity

own
vere

men

This brings us to another question concerning the role of mone¬
tary policy that is of current sig¬
nificance both in Europe and in
this country: Can general credit

of

the

is

prosperous

Although monetary policy
standing alone is not sufficiently

control restrain the speculative
ebullience that causes recoveries

potent

to become bubbles

blisters and

American

If it is to succeed,

withstand

then to burst?
what

teammates

bility

has

or

does

become

maintain

to

strength

it need?

around

endangered

and

stability,

resilience

financial

the

of

the

structure

to

shocks, whether infla¬
or
deflationary, center

tionary

months, financial sta¬

i

that

such

rope,

.as

it.

Its

main

purpose

is to

help

provide enough credit and
currency to foster .a high utilizalion

Scandinavia. : These

sound

made, themselves
\*«£&m*feit in the early postwar years, .or

amount of

credit and currency at
given time for given conditions'

'3

during the Korean War; however,

they have been serious enough to

banking

ties

induce

preme

task

serve.

In

Their

have

been

maintained.

(4) Fiscal actions favoring

re-

the

countries

involved

to

take quite drastic steps.

L argest

at

the

heart

of

problem.
of

the

more

-1'.

the

It

'

is

central
the

Federal

concrete

'•

su¬

Re¬

terms,

•

Shoemakers

Nationally Advertised & Nationally
and

women.

Recognized Brands Include:
*

CHILDREN'S SHOES

this

business

reflects the extent to which equi-

i.

.

that

is

nearly 56,000,000 pairs of shojesL
yearly to 30,000 retail customers^
.

external

constantly making new rec¬
ords, the problem is to maintain
prosperity by restraining unwise
speculation.

creditworthiness

Sells
.

British

,

66'nfidence

•

with

Employs
36,000

re¬

and

existefe->bi;-^te^i^^pressures;%that

(3) The
borrowers

World's

sta¬

be

current
situation
in/our
country, too, provides a se¬
testing for monetary policy.

Now

1954,
aid.

•r'

The

when

credit

constructive

companied by a slight drop in out¬

large'institu-

just

.

from

transition

of

of J the nation's physical re¬
sources," technical skills, and man-'
^am/her p^uV-Mr difficulties cannot be compared in -power without inducing inflation;
use^>;'r'^^'^^^yit:magnitude with the inflationary Maintenance of the appropriate

Business

additional

sua¬

The

in

but

"moral

about"" to

on

accounts.

policy

circumstances;

of

gained, the British transportation
system was disrupted by railroad
and dock strikes, with adverse re¬

*

(2)

number

However,

bility 'seemed

propitious climate like that of
it can provide important

a

the

com¬

effective in the

more

percussions

all

under

small

a

ductions.

In short, monetary
itself
cannot
restore

recently

Kingdom
because
its
banking "system consists jE>f such

cur*

automatic tax

as

This tool
the

is

standing.

Association, Chicago, 111., Sept. 26, 1955.




increasing
availability of

An

excessive

The

United

these

overexpansion to stability was ac¬

American

and

of

such

covery,

In recent

"(1)

monetary

Bankers

nual Convention of the

Increasing

Supply

effectiveness

supply

ness

of

ticism is justified that easing credit

before

1952.

Credit

Western Europe

*An address

one-

Continental

some

Four Factors In

factors contributed to the mildness
the recession! and the prompt

tant to discover whether the
skep¬

ston

than in

er

reces¬

the

in

and

The money supply in¬

sharply

Kingdom about

European-countries, such as Germany, as much as one-third high-

of

ef¬

fectiveness of monetary policy in

and

Monetary credit to convert <T business depolicy appears to have played an "tline inter recovery seems to turn
important role dven though other on the presence of four factors:

disappeared both here and
abroad, it is worthwhile to ex¬
the

1954.

mildlyjduring the

stages

now

to

employment.
However,
jupward movement soon de-

and

new

fashion. It has fostered subsequent

expansion.

inflation.

as

for

creased

tary regulation. My task is to ex¬
plore its role as an antidote to
business recession, and as a re¬

the evidence

of

most

1953

availability of credit enabled liq¬
uidation to proceed in an orderly

devices is general, flexible, mone¬

amine

of

readily available to meet,the

demand

significant of the available control

1953

put
a

in the United

half

second

throughout

the nature of business,
their amplitude may be
subject to
human control.
One of the most

Since the recession of

more

the end
In'the United States,

veloped; and by the spring of 1955,
industrial production nearly
everywhere reached record levels:

was

herent in

upon

no

on

the

prosperity be continued?
Although fluctuations are! in¬

straint

is

"pushing

a

a

tive giddiness among business men
and consumers?
Can the present
pace

depressions

string."
policy of active ease was fol¬
lowed by the Federal Reserve in

specula¬

g

solve

effective than

pansion induc-

and

vances.

prudence and restraint in the present situation.

For

credit

sion"

joint responsibility with the Federal Reserve by exercising

a

interesting.-

mercial banks to reduce their ad¬

problem, and cautions both bankers and business executives that they,

together, have

*

experience

Chancellor-Appealed to the

vance

may
have upon fu¬

particularly

stalment

not re¬

can

pressing

most

as

con¬

sound underlying

a

the

current

British

Kingdom twice raised its
discount rate this
year; moreover,
it adopted measures to curb in¬

the impact of the present

prosper¬

ity is here, it

recent

United

Federal Reserve Vice-Chairman, in commenting

booming. Now
that

Recent British Experience

Vice-Chairman of the Board of Governors, Federal

is

shoes

thap

more

produced

.

Poll Parrot

H

The Rand

Red Goose

10%

in

MEN'S SHOES

«»'

V

City Club

„

Weather Bird

the

United States.

John C. Roberts

4

Winthrop

V

Florsheim

Controlled by
more

with

than

13,000 stockholders,
•

no

person

or

organization

f

<

WOMEN'S SHOES

owning
*

as much as 3% of the
3,400,000 shares issued.

Accent

Dorothy

Trim Tred

Grace Walker

Operates
63

Queen Quality
Dodd

Velvet

Vitality

—

Step

-

,

-

Florsheim

1

shoe--factories, including 6

Canadian
other

plants

.

.

.

plus

33

Sundial Shoes for entire

family.

plants,

including 7 tan¬
neries, producing upper leather,
soles, heels, cotton textiles for
linings, etc.

Conformal

Shoes—featuring custom-fitted arch for
men

and

women.

/
.

_

Hy-Test Safety Shoes for

men

and

women.

r

International
General Offices:

1509

Shoe

Company

Washington Ave., St. Louis 3, Mo.

.

i

Volume

182

Number

5470

.

.

.

The Commercial and Financial Chronicle

credit and monetary authori¬
must
furnish
the
reserves

the
ties

ernment,
ishes

needed by the commercial banks to

the

finance

level of
out

either

deflation.

or

The

and

dollars

return to earth after

while at the

There

availability

of credit must guide
savings of the economy into
constructive activities; the quan¬
tity of credit must reflect a rate
of growth
in the active money
supply that is in keeping with
the

of

habits

with

the

the

population

cash

balances,

growth in available

re¬

The

problem of insuring
growth without inflation involves
a
correct appraisal of the future
sources.

rate

of

omy

expansion that

sustain.

can

needs

to

be

the

This

made

with

Another

much

as

The

future

order

make
to

the

to

be

in

a

position to

maximum

contribution

economic

growth,

stable

in

all

segments

of

the

economy.

This involves

gathering and ana¬
lyzing current data on credit, pro¬
duction
and
prices.
It also in¬
volves

keeping alert to longer
range structural developments in
banking and in the economy gen¬
erally.
That is a major reason
why the Federal Reserve is con¬
ducting

a

business

loan

survey

this
year.
Through increased
knowledge of the lending prac¬
tices of banks, small as well as
large, and the types of customers
served, the Federal Reserve will
be

in

a

better

position

to

judge

the impact of future economic de¬

velopments

on

the

credit

and

monetary system.
In curbing inflationary develop¬

ments, appropriate fiscal and debt
management
It

policy is important.

includes, at all levels of




gov¬

the

were

billions

until

of

its sudden

October, 1929.

difficulties

en¬

countered

adjunct

to

by the plan to mer¬
chandise
mortgages
during the
1920'$.
This last example illus¬
trates how a scheme calculated to
would have contributed to the fi¬

the

quality of credit.

parody of Shakespeare be
it is important that

a

If

per¬

mitted,

the
quality of credit be not strained.
To
keep excessive optimism in
.

leash

requires prudent judgment,
and is the overriding obligation,
not only of
business executives

view

of

the

they

scene;

and

experience

dealing

secure an

economic

wifh risks.

-

possess

and

excep¬

skill

in

v:"■

Executives

.

I

to

come

the

concern:

principal
of business

my

quality

decisions is important at all times,
but especially so during prosper¬

ity.

In short, the duration of the

expansion will

the

by

Crises

business

now

be

executives.

influ¬

of

quality
being

policy

made

by

mean

I

not

only the business decisions made

ward movements that appeared to

by

be

solidly based were injured or
destroyed by lack of sufficient
caution
and
judgment to curb
over-expansion and over-borrow¬
ing. Many of the great financial

those by business leaders who are

crises which have become part of

later

business

tradition

were

cesses

and

ing and

a

use

the
ex¬

too exuberant grant¬

of credit.

It is

fluous to cite the historic

super¬

cases

of

the bulbs of

Holland, or the Mis¬
sissippi bubble, or the railroad
boom that preceded 1893, because
many of you have personal recol¬
lections
There

of

was

recent

more

crises.

the Florida land boom

the overborrowing abroad that-spoiled our
foreign lending between the two
ending

in

World

1926,

Wars,
arrangements

out

initially

and

though sound
been worked
between responsible
even

had

buffer

luck

the

for

shocks

protection

—

to fix the roof is when the

sun

is

shining.

causes

him

feel

to

that

he

no

(3) Is adequate liquidity being
by banks as well as
by their borrowers?

maintained

My overall conclusion as to the
ability of general monetary policy
to

cline

bad has

equity left and that he is
The time "paying for a dead horse!"

miscalculation.

or

bad

of

against

restrain

inflation

is

that

it

is

best hope, but that it requires
the collaboration both of fiscal
our

(4) Are

future

perity,

and equity
overly discounted?

growth,
values

pros¬

being

dence

as

will maintain the

pru¬

quality

(5) Are construction costs be¬
ing raised unduly by too intensive
activity in this segment of the

of credit.

,

Now

enced

unhappy result of speculative

a

times

any

economy?
This conclusion may appear to
It is probably not fruitful to
beg the question unless the mean¬
ing of credit quality is made more attempt generalized answers to
these questions.
More important
concrete.
Obviously, there is no
far
will
be
the
answers
formula by which a good risk may by
reached by each banker and his
be differentiated from a poor one.
customers as they make individ¬
Therein lies the art of extending
ual decisions.
They alone are in
credit.
But some of my present
a
position to estimate accurately
concern may
be reflected in the
in advance whether a particular
form of questions:
action seems prudent and sound.
(1) Is credit being sought and
They, too, must await actual ex¬
extended for
purposes
tnat are
perience for confirmation; but if
primarily speculative rather than one observes the
pageant of his¬
constructive?
Is making a "fast
tory, do not some guides appear
buck" the objective rather than
that help to avoid blunders lead¬
increasing the supply of goods and
ing to future losses?
Someone

The Responsibility of Business

decisions

our

original value. Suppose the bor¬
does in¬ rower loses his job, or his sense
kind. An appro¬ of responsibility toward his obli¬
priately liquid condition provides gations, especially if a price de¬
of

surance

tization.

current

past generations, many for¬

immediate

so

policy and of such executive

The Cause of Former Financial

In

of its time)

strength diminishes
earnings perhaps, but

35

spoiled by a too liberal ap¬
praisal of real estate values, and
by the lack of appropriate amor¬

leaders, but of bank¬

opportunities to

(and which

nancial advancement

in particular, for bankers have

unusual

definite need

a

was

■:

and of labor

the

FederahReserve finds it necessary
to keep informed on developments

by

credit

alike to

tional

Reserve

In

essential

skywaird
of

bal¬

attention by borrower and lender

overall

Watchfulnes of the Federal

time maintain¬

same

looned

was

meet

ers

precision as prophecy of
happenings will permit.

addition,

general monetary controls in re¬
straining speculative ebullience is

econ¬

appraisal

in

ing sufficient liquidity.

in

and

governments and
responsible
banking houses. There was the

funds that would otherwise go
into
ill
considered
expansion,

the

maintaining

It

up

inla-

to
cost

dimin¬

deficits.

stock market boom that

high

a

that

eliminates

debt man¬
agement that is contrived to mop

includes,

utilization with¬

contributing

tion

at

economy

resource

budgeting

or

(H22)

marginal

but

concerns,

also

the banks' most valued customers.

Unless

their

decisions

reflect

an

objective appraisal of present and
future trends, such credit as proves
to

have

embarrass

the

the borrower.
is

that

neither
be

too

mism.
how

bank

little

to

unwise

and

What I

executives

willing

guard

been

plague

am

urging

should

nor

too

venture

will

risk

much;

but

to

unwarranted

balance

protection

risk; caution and daring;

has

(2) How long does it take the
owner
to
obtain
a
significant
equity in durable goods that are
bought on time, in view of the
rapid early depreciation of the
goods and the costs of financing
their purchase?
If the terms of
automobile

one-third
pay, the
owner's equity at the end of one
and year is about 30% of the depre¬

still

opti¬
The problem, of course, is

against

services?

conserv¬

paper

down and 30

ciated

are

months to

value

of

the

ing and expanding; the safety of
a
strong cash position and the

and

somewhat

the

original value.

growth that borrowing makes

are

sible.

Even during

prosperity,
ers

alike

cash

this delectable

bankers

may

position.

be

To

pos¬

and

wise

borrow¬
to

watch

maintain

its

If

the

down

one-quarter

36

and

insight

ask

if

questions

now

the

to

should

insight

and

business

themselves

sure

hindsight

Perhaps regret

avoided

to

may

be

executives

certain

before

searching
overexpo¬

delightful warmth of

prosperity leads to blisters.

With Sutro Co. Staff

of

terms

that

to

foresight.

automobile

than 15%

more

said

lead

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Syd¬

Bloch has become

ney

affiliated

months to pay, the owner's equity

with Sutro & Co., 407 Montgomery

at the end of

Street, members of the New York

a

year

is only about

10% of the depreciated value, and
not

much

than

more

5%

of

throw

a

the

and

San

Francisco

Stock

changes.

tycoo/,*
So you

lot of weight in a board of
what? The caprices of the

directors7 meeting! So

frequently have been known to

fair

sex

you

stewing in your own juice,

To

nonetheless.

duplicate your executive prowess in

realm of 7/women7/—may we
resort to

You

leave

the

suggest that you

truly fine perfume?

the flattery of a

might start off with the jewel fragrance,

EMERAUDE. (Less expensive

variety—and
T.T/s. of

our

very

nearly

than the square-cut

as

effective, say the

acquaintance!)

$50 to 2.85 plus ia*

Ex¬

36

The Commercial and Financial Chronicle

(1424)

Continued

jrom

branch

26

page

Banking in

Democracy

a

panies should not be permitted to
control
and
operate
businesses
that are not related to the banking

wide multiple

business.

the extension of holding company

both banking and

banking across state lines would
be
additional
protection against

Companies now owning
nonbank related
institutions or corporations should
be required to divest their owner¬
ship of one or the other within a
The

reasonable time.
ment should

divest¬

same

be

required of chain
banking and other forms of central
control of multiple banking.
There is also recognition on the
part of bankers and bank super¬
visory agencies that in the public

banking under cen¬

tral control, no matter what form
it may take.
The prohibition of

the

possible conversion of the

American banking structure into a

nationwide

centralized
such

system

happened in most of

has

as

world.
duplication of regulation

large countries of the

the

Some

administration

and

be

may

the

price of preserving our dual bank¬

and of maintaining
interest there should be some de¬ some degree of control of policies
with respect to the chartering and
gree of governmental control and
regulation of the acquisition of the operations of banks, but the
is cheap in terms of the
banks by bank holding companies. price
bal¬
Such a program is clearly called preservation of checks and
ances
in
the
operation of our
for.
"The first

question that arises is
public interest
there should be any further acqui¬
sition of banks by holding com¬
panies. So far as such acquisitions
are limited to an individual state,
the question is primarily one fori
the people in that state to deter¬
whether

mine.

in the

in

if the people

However,

ing

system

democratic system

people.
that

pervisory authorities, both state
and federal, as to bank charters

lation of

prohibition should

same

the

ownership

apply to

national

of

should

banks

branch

be

not

effective in the control and regu¬

multiple banking through

holding companies and otherwise.

banks

in that state.

can

same

now

banks

holding company, the

see no good reason
kind of cooperation
exists among bank su¬

I

why the

and

a

and in provid¬

ing the flexibility under which the
policies and operations of govern¬
ment respond to the will of the

state, through legislative action,
prohibit the ownership of state
a

by

One basic question of public in¬
terest

that

banking systems, holding
companies, and chains, the U. S.
Department of Justice will move
into
the
picture.
It is already
knocking at the door. Additional
authority and direction should be
given to bank supervisory agen¬
cies, by legislation to deal ade¬
quately with this problem.
The

possibilities of
develop¬
multiple bank¬
ing in this country can have a
serious
impact on our national

ments in dominant

on our banking system,
public opinion as to the
private ownership of the chartered
banking system.

economy,

and

on

Our

in

government has expressed
of the American people

will

the

uncertain terms in the stat¬

no

utory governmental policy decla¬
ration known as the Employment
Act

of

declaration

This

1946.

re¬

quires all branches, instrumental¬

ities, and agencies of the govern¬
States to fol¬
low programs
and policies that
will
provide maximum employ¬
ment of the United

throughout

ment

this

the country.
the

of

statement

In

economic

policy of this country, there is no
reference to stable purchasing
power,
inflation, or deflation.
However, the public has been led
to believe that through the use of

policies by government,
economic system can be made

proper
our

function

to

so

to

as

provide

not

only full employment but an ever
increasing standard of living and
a
continuing prosperity without

entire substantial backsets and without
state should permit the ac¬ field
of mergers,
consolidations, serious inflation or deflation.
I
quisition of state banks by holding branches, chains, and bank hold¬ fervently hope that this
objective
companies, then the acquisition of ing companies that should be a may be realized.
:
;
national banks
in that state by factor in the consideration by gov¬
holding companies should follow. ernmental supervisory agencies of Banks Should Implement National
The conditions or limitations un¬
Monetary Policy
any application for the acquisition
der which a holding company may of a bank or a branch is that of
The
public believes that the
acquire the stock of any state bank dominance or control of banking principal instrumentalities through
in states permitting such acquisi¬ resources in the area served. The
which the policies of government
tions should be determined by the extension of credit is one of a
in the control and
direction of
state banking authorities of each bank's most
important functions. debt management, of credit, of
state. Similar authority should be
Although banks are supervised by monetary and fiscal affairs will
vested in the Office of the Comp¬ government agencies, there is no become effective are the banks.
troller of the Currency with re¬
requirement, that, a bank must Therefore, if there should be in¬
If

spect to national banks.

Final

au¬

thority for approval of the acqui¬
sition of banks by holding compa¬
within

vested

Board

the

under

authority.
Federal

legal

are

in

Reserve

state

any

company

Board

the

have

the

over

the objec¬

branch

should
of

the

now

banking,

be given

approval

no

to the expansion

holding

company
banking
state lines. Holding compa¬

across

nies should
charters

be required

in

the

states

to

other states. On the

companies have

a

which

of banks

riod

of

They

service

during the depression pe¬
Simple fair¬

the thirties.

dictate

companies

owning

state lines should

that

holding

banks

across

be required

not

tc divest themselves of such

ership.
tions

own¬

However,- future acquisi¬

across

prohibited
a

in

and saving a number

would

ness

state

lines

by federal

should

law.i

be

Such

policy would be consistent with

that

now

applicable

to

among

holding

company

banking,

trol

a

at

provide

to

all

for

who

want

rates

refuse to make

or

loans and, except as

influenced by

relatively free to
it becomes a
matter of great public interest and
fix

are

interest

rates,

that

concern

should have

a

potential borrower
to two

access

or

more

banks.

Must Have

Competitive Banking
System

a

most

of

cases

consolidations,

mergers,

acquisitions,

establishment

no

in

bank

of

branch

and
offi¬

in recent years, there has been
adverse competitive effect; and

ces

there has been an
enlargement and improvement of
banking services made available
to the public.
On the one hand,
many

banking system must provide
competitive banking services
throughout the nation while on

the

other hand, it must avoid the
multiplication of too many banks

such

contributed to the banking
difficulties of the early 1930's.
Whenever

banking
area

the

concentration

control

becomes

policies

of

in

so

state

any

or

that

the

management

one

great

of

can

under

multiple
of

any

central

banking.

one

or

any

bination of these forms of
nationwide

con¬

The
com¬

banking

bank

credit and

which

obtained
in

any

control

but of the chartered

banking

sys¬

itself.

Public

of
of

Preponderant

public

sentiment

in this country is against nation¬




may

be

state,

or

a

serious

interest

concentration

vital

power

over

in¬
and

the

economic life of the people of any

large
terest

Centralized Multiple Banking

public

Such

area

interest

Against Nationwide

credit

througout the
there is

volved.

country would spell the doom not
only of the dual banking structure

bank

the conditions

area,

question

the face of this

across

this

coun¬

failure to maintain high

a

of

employment at ever in¬
creasing wages, the banking sys¬
tem will be charged with a large
part of the responsibility.
It is inconceivable that banking
would react otherwise than to im¬

plement the policies designed by
the Federal Re¬

government and
serve

System to stabilize the

econ¬

to promote employment, and

omy,

to minimize inflation

deflation.

or

The

general response of banking
changes in monetary and credit
policies of government in recent

to

is

years

tribute not only to the

a

enlightened leadership and direc¬
tion of monetary

by

the

and credit poli¬

Federal

Thursday, October 6, 1955

.

bankers, and is evidence of
their recognition of the duties and
responsibilities of banking under
democratic

is neither in the public

nor

of

in

the

the

long term in¬

chartered

system. It is not

a

banking

question of size

but of dominance. Unless the bank

supervisory agencies restrain the
growing dominance of some of the

enterprise system operating under continued but the
democratic government.
ments
against
The

primary financial resources

of the F.D.I.C. with which to meet
its insurance liabilites

its

re¬

which aggregated in
of
$1.5-billion on Dec.

ex¬

cess

1954.

government.

Federal

Deposit Insurance

Corporation
One institution

in

banking that

the public considers paramount in
the public interest is the Federal

Deposit

Insurance

Started

in

misgiving
lic

on

the

and

for

the

Corporation.

1933-1934

with

some

the part of the pub¬
bankers as a device

protection

31,
addition, it has current
in its authority to assess

In

resources

insurance
ber

premiums against

banks

of

1/12

mem¬

1%

of

of

of

depositors

available

annual

an

income

jectives
It is
on

a

have

been

liabilities

are

largely of

gent character that
upon

are

a

contin¬

dependent

the soundness of its member

banks.
tial

accomplished.

insurance system financed
mutual assessment plan.
Its

an

The

amount

liabilities

mined

by

any

The adequacy
sources

to

in

of

excess

$180-million.

The record of the F.D.I.C. in its
21

of

years

existence

corporate

has been phenomenal in the small
amount

from

posits.
for

of

insurance

bank

of

tively.

be

Its

its

poten¬

be

deter¬

entire

21-year period of
existence have ag¬

corporate

gregated

$28-million,

only

from

which should be deducted interest
and

allowable

the

return

collected

$8.7-million, leav¬
ing a net loss on deposit insurance
in the 21 years of approximately
$19.2-million.
The total net in¬
losses for the 21-year pe¬
is, therefore, less than 1%%

surance

riod

of its present reserves.
nual

basis,

On

an

insurance

net

an¬

losses

have averaged less than $l-million

less than 6/100 of 1%

per year or

Of

its

of

available

present

and

assessments

In

reserves.

from

from

interest

on

future

liabilities

measured

quantita¬

future

needs

soundness

of

its

member banks and of the private

authorized

borrow

to

United

from the

Government to finance the

aster

of

such

dis¬

a

proportions should

would

as

of the

excess

require funds in
of the Cor¬

reserves

poration.
Many

Banks

Their

Should Increase

Own

Reserves

Although there

is no need nor
justification for the F.D.I.C. to ac¬
cumulate additional reserves from
assessments

desirable

their

crease

the

against

for

banks, it is
banks to in¬

many

own

banks in

While

reserves.

capital accounts and

of I all

the

reserves

United

States

Dec. 31, 1954, aggregated $18.6-

on

billion

against deposits of $212billion, which is reasonably ade¬
quate for the banking system as
a whole, there are many cases in
which individual banks should in¬
their capital funds and re¬

crease

Our fast

growing popula¬
dynamic industrial
development of the country in re¬
serves.

tion

the

and

cent

bank

in

and

areas

bank

institutions

some

their

of

excess

in

accumulation

of

capital.

For

entire

the

however,
all

have resulted in in¬
deposits in
some

years

creased

while

banks

past eight

of

banking system,
deposits of

total

increased

have

investments, average annual net
deposit insurance losses have
averaged approximately V2 of 1%

the

in

for losses

35%, capital

years

counts have increased in the

ac¬

same

period 53%.

This astounding record of negli¬
gible insurance losses is a tribute
to the sound operations of insured
banks throughout this 21-year pe¬

In addition, reserves
during that period have
been increased by approximately
$l-billion. During the same eightyear period, insured commercial
banks have put earnings into cap¬

riod.

ital accounts of 32% more than the

annual

It

sound

income.

is

also

tribute

a

policies of all bank

to

the

super¬

visory agencies, state and federal,
and

the" effectiveness

to

which the

with

has dealt

F.D.I.C.

with

potential and actual difficulties of
member

banks.

is

It

evidence

of

total

amounts

dends.

This

A Proposal

I

wish

which

under the freedoms of democratic

in

paid- out

is

fine

a

adding strength
system.

the strength of the dynamic Amer¬
ican enterprise system operating

"

divi¬
of

record

the

to

banking

-

Regarding the F.D.I.C.
submit

to

prdposal

a

not

government.
The resources of the F.D.I.C. in
on

hand and in available

are,

beyond question, far
than any conceivable

reserves

income

greater
it

needs

should

may

be.

have.

The

This is

F.D.I.C.

as

is

it

the

"Rock

of

deposit

structure, and the ade¬
of its resources must be
no possible question can

quacy

Gibraltar"

the

of

bank

such that

raised.

be

the

On
be

hand,

there

can

no

to

other

pile

justification for continuing
up reserves from assess¬
against banks far and be¬
yond any foreseeable need. It is
my considered judgment that the
ments

of the

Corporation have

now
reached a
point where all
further annual assessments against
banks in amounts in excess of the

current

annual

requirements

of

the Corporation to cover expenses
and losses should be refunded to

the banks.
Under

the

present

formula,

the

Corporation

times has in hand
to

assessment

one

at

rate

plus
poration in

1%

of

this

refunded

Any

any

use

and

be

the

that

amount
banks.
any

may

It

is

condition

from

this

additions

insurance

deposits

in

would

investment

to

reserves

income

should

as

be

reduction

added

to

refunded

to

stead

40%

the

the

to

individual

them for addi¬
losses.

In¬

using

for

reserves

this

F.D.I.C.

the

of

of

assess¬

40%,

by

banks and used by

tions

of

which
F.D.I.C.
its reserves, should

remaining

retained

now

assessment

net

to

add

to

the

contingent reserves of the
Corporation, the individual banks
would

these funds to increase

use

their

own

These

re¬

against

any

reserves.

should

serves

be

including losses in the
liquidation of securities and fi¬
delity losses in excess of amounts
losses,

recovered
losses

from insurance

required

well

would

all

losses

charge

to

as

Banks

loans.

on

they might incur against such re¬
serves
to
the
extent that
such
adequate. However, it
provided that charges
not be made against this

reserves

reserve

the

are

be

should

government, in which

our

year

of

is

the

is provided under present

as

The

are charge¬
$144-million of

arise, barring a complete
collapse of our national economy
of

for

used

ments

should

of the

could

and

in excess of the cost
operations and losses of the
Corporation in any year.
Sixty
per cent of this amount should be
of

Cor¬

any

to

inconceivable

runs

year

any

before

deposits,

currently

expenses

against

income
be

of

the

Corporation

be

1/12

amount

in

propose

is for the F.D.I.C. to refund to the

as

of

is

banks all assessment income to the

amount equal

which

able

all

clearly convinced

am

surance
Corporation and
public interest. The plan I

full year's assessment at the

an

I

only in the interest of our
banking system but is in the in¬
terest of the Federal Deposit in¬

law.

require even a
substantial part of the annual as¬
sessment
of
$144-million.
The
Corporation also has income from
investments
of
$37-million
per
year to add to its reserves.
The

re¬

is

reserves

own

income, the Cor¬

$3-billion

to

States

terms

income

annual

losses

possible

and

in

of

amount

actuarial standard.

must be measured in terms of the

strength

de¬

Its deposit insurance losses

the

its

it has sustained

losses

the

of its financial

meet

cannot

of

cannot

poration
up

its

assessment

with

which to meet losses and expenses

losses

ob¬

In addition to
and

occur

to $144-million. In ad¬
dition, it has investment income
which aggregates more than $37million per year. Thus, in addition
to its reserves, the Corporation has

above $144-million per year.

its

accumula¬

unwarranted

an

tion of funds.

amounted

effectiveness

which

above

needed for expenses and
the Corporation repre¬

of

sent

assess¬

acquisition of bank assets if

against losses, the history and rec¬
of this Corporation have ex¬
ceeded the expectations and even
the hopes of its advocates in the

ord

with

de¬

amounts

losses

of

banks

excess

posits annually, which assessment
in the year ended Dec. 31, 1954,

resources

The

are

serves,

Reserve

System and the U. S. Treasury De¬
partment but to the statesmanship

as

consolidated

or

or

levels

cases,

the

of

try

in

deflation

or

of

In

the

flation

cies

largely determine the availability

of

spread

tem

regulated

branch banking, and
banking, all of them repre¬

chain
sent

required

are

services
and

such

public utilities, rail¬
These regulated in¬

free to make

are

branch

banking across state lines.
Al¬
though there are important differ¬
ences

with

regulated by
governmental bodies. Since banks

in

splendid record

valuable

a

over

dustries

be

whole, holding

in their operation of banks.

taking

etc.

any

secure

in

they operate and should not
permitted
to
acquire banks

performed

roads,

as

competition

with respect

case

to

case

industries

them

over

loans

the

not

by a holding
the objection of
authorities nor of

tion of the Comptroller's office.

to

the

to

and all appli¬
cants, nor is the rate of interest
that a bank may charge on a loan
fixed by law other than by the
ceiling of the usury laws. This is

their

banking
national bank

As is

make

acquisition

bank

state
any

of

grant

should

case

to approve the

power

be

Reserve

limited

no

such

should

Federal

a

In

where

state

a

requisitions

of

applies

a

nies

..

,

losses

for

reserves

debt
ant

Section

thereunder
nue

166(c)

of

Code and

Revenue

until

under the bad

established

formula,
to

ternal

loans

on

set up

pursu¬

the In¬
rulings

by the Internal Reve¬

Service, have been exhausted.

This

formula

under

Revenue Code for

ation

reserves

loans

should

though

it

banks.

valu¬
even

limited
limited number of

a

on

charged against
serves

continued

be

Losses

Internal
up

against existing

provides

protection to

the

setting

only

loans should be

thp valuation re¬

permitted under the regu-

lations
;

Number 5470

182

Volume

the

of

Service

to

reserves

are

loans in

on

adequate.

The Commercial and Financial Chronicle

.

Revenue
such

Any losses

be

chargeable to
of the bank

reserves

arising from the proposed change
.in the

those

F.D.I.C. formula

of

assess¬

requirements."
Today, 19
later, I reaffirm that faith

years

,.1954, in

addition to the 60%

sessment refund of
sured

as¬

$81,752,500, in¬

banks would have received

general

as

;
:

amount of

$54,501,666 for

use

they

as

have

been

tested

intervening
strain

and

in

were

years

of

They

1936.

throughout

against losses

reserves

in individual member hanks.
~

The strength of the Federal De¬

posit Insurance Corporation rests
only on its own resources but
] on the strength of the member
not

banks.

Before the Corporation can

sustain any

loss as a result of its
insurance of deposits in a bank,

the bank itself must sustain

loss

a

the

>

resulting

World

War

financial

II

nomic dislocations.

and

and

and
eco-r

the

to

American

people,

maintenance
of

ment

- our

private

and

system

throughout

constitutes

the

most...

&

a

brilliant

our

duty

bankers

and

public good.

It is

responsibility

maintain

to

as

that record.

(1) its entire reserves, plus
(2) its undivided profits, plus (3)
its surplus, and plus (4) its entire

Alex. ;

headed

years

record of the devotion of pri¬

vate interest to

and

Ohio

first

RR.

Co.'s

by

Glore,

bonds

Brown. &

this

an

Forgan

$80,000,000

Sons

financing.

issued

are

of

in

in

*

The

three

series

who
new

series:

A 3%s

due

issue,

1, 1980; and $120,-

which

is

by

for

way

the

largest

history of railroad financ¬

was

underwritten by

of nearly

a

group

exchange

offer,

com¬

commit¬

ments had been received through

sales and exchange for all of the

$120,000,000 series C bonds. Some
of

the

Aug.

series

1,

bonds

A, 3%%

1970

due

and

bonds due

series

B,

Bennett

4%

Sept. 1, 1980, are still

nounced

available, according to the under¬

writers, and

1, 1995.

99%

and

are

being offered at

98%%, respectively.

Mich.

that J. Lane

department

as

a

with

has
their

registered

proposed formula

individual

banks to

will

set

Mr.

-

Donovan

resident
Detroit
and

is
a
life-long
Detroit,'a graduate of
University School, in 1932

Dartmouth

College in 1936.
recently he was connected

Until

with Gately
and

.

of

Shops, Inc.

merchandise

The

firm

founded

Bennett

in

by

1932

retained

sentatives.
Buhl

Offices

are

Building.

as

by the Corporation

additions

the

to

reserves

of

the

;

Corporation.
The proposed
change in the formula will not

"

change the taxable income of the
banks

the income tax

nor

the

of

Federal

same

40%

come

,

now

of

revenues

Government.

net

The

assessment

in-,

retained by the Corpo¬

ration and charged as an expense

*

by the operating bank will con¬
charged as an expense

tinue to be

of the individual bank.

,

will be to the bank's

The credit

own

reserves

for losses instead of by the F.D.I.C.
to its reserves. There is no ques¬

tion

but

better

and

if

greater

the

of

be

served

the protection to
Corporation
will

funds

the

needs

will

system

Insurance

crease

the

that

banking

used

are

primary

the
be

to

in¬

reserves of

in¬

dividual banks than if such funds
added

are

of the

serves

The

the

to

contingent

re¬

Corporation.
of the Corporation

reserves

would continue to increase

by the

net amounts of investment income

the

■of

Corporation, which in the

'

ended Dec. 31, 1954, amount¬

year

ed to
I

:

$37,323,214.

submit this program

for your

consideration and in the hope that
bankers and the bank supervisory

authorities, including the officers
and

the

and

the

.States

directors

the

of

Congress

of

F.D.I.C.

the

United

in a common effort,
adopt it as being timely and de¬
sirable and in the public interest.
may,

When

r

in

I

this Division

addressed

I expressed the faith of
American bankers in our banking
1936,

-system in these words: "As bank¬
ers,

believe in the American

we

dual

system of state and national
We

banks.

American

this

that

believe

NOW-SLEEPING

aspirations of the American

system
the

to

contributed

has

devel¬

and

progress

opment of this nation, to its rapid
economic
standard
than

has

growth,
of

in

system

other

na¬

have

any

ac¬

We

world.

the

its people,

banking

contributed to

high

the

to
of

living

other

any

tion

cepted the minutest control of our

by

institutions

banking

govern¬

ment

agencies, state and Federal,

to

extent not attempted

an

other

nation.

great

in

We

any

have

everything to gain from a banking
system
strong,

is

that

that

that

sound,

that

FREIGHT CAR "PASSENGERS!"

serviceable,

is

people;

everything
system

to

and

lose

that

in

we

serious

be

shipped

problem to manufacturers,
shippers and railroads. Today, lading
damage in railroad freight cars can
be practically eliminated. And this
too, is the forward look.
,

The

The

the

.

Principles

of

Automobile

applied to freight
cars by Chrysler Corporation engi¬
neers.. The result was the Chrysler
Design Railway Freight Truck.* The
unique design of this truck enables
Suspension were

it to absorb both lateral and vertical

more

swiftly, with far

greater savings, as damage is practi¬

cally non-existent. Chrysler Design
Trucks are now used by more than
30 railroads!
Philosophy of Progress we

call

underlies

all

forward

look

Chrysler Corporation activity. Con¬
tinuous research in vehicle design
provides America with better trans¬
portation on the highways as well
as on

the rails.

The Forward Look is

balanced suspension.
on

the Move!

shock giving full protection to even
the most fragile loads, at passenger

*Chrysler Design Railroad Freight Trucks are
manufactured under Chrysler patent license by the
Symington-Gould Corp., and sold by Symington-

train

Gould

speeds. High-rated goods can

Corp■ and Evans Products Company

.

This Chrysler

Design Railway Freight Truck permits freight
cars
to carry heavier, more delicatje loads
without damage, and provides a "sleeping-car
ride"

even

at passenger

train speeds.

and
have

defending

dpes not meet




Lading Damage for many years was
a

is

promotes the welfare of the

American

any

FOR

peo¬

ple. We believe that this American

-more

TREATMENT

system is suited to the

characteristics, the needs, and the

.banking

CAR

CHRYSLER CORPORATION
Plymouth, Dodge, De Soto, Chrysler and Imperial Motor Cars, Dodge Trucks, Chrysler Marine & Industrial Engines, Oilite Metpl
Pouder Products, MoPdr Parts & Accessories, Airtemp Heating, Air Conditioning and Refrigeration and Cycleweld Cement Products
Copyright 1955 by Chrysler Corporation

has

a

sales force of 18 registered repre¬

instead of these funds being used
,.as

owner

Manley

now

; primary reserves against losses the
40% .of
net
assessment
income
now

as

manager.

be

up

repre¬

capacity, he will
devote his full time to all phases
of security investment services.

The strengthening of a
primary reserves and capi¬
tal funds necessarily reduces the
contingent liabilities of the Insur¬
ance
Corporation. The net result
the

i9

sales

In this

bank's

for

an¬

Donovan

capital.

of

Manley,

—

Company

associated

now

and

000.000 of series C 4J/4S due Oct

&

sentative.

200 banking houses.

During the period of the
pany's

Manley, Bennett & Co.

over¬

program.

37

J. Lane Donovan Joins

the

DETROIT,

consolidation

Aug. 1, 1970; $80,000,000 of series
B 4s due Sept.

the

step in the company's

the

ing,

authorization

clears

debt

This

consolidated

according to

Co., Halsey, Stuart & Co. Inc.,

and

chapter in all financial history. It
is

Baltimore

announcement

to

enterprise

these

and/or exchange of The

mortgage bonds,

nourish¬

and

sale

$280,000,000

The service of

American banking to Government,

the

all

mission has approved the issuance

under the stress

of:

;

formal

ICC

final

The Interstate Commerce Com¬

the

"
-

the

Financing Approved

These principles are as true to¬

day

'

the

This

Baltimore & Ohio RR.

ment.

Under this formula in the year

(1425)

and that belief.

of the valuation

excess

general

.

that

extent

would

reserves

the

Internal

the

.

Tops in TV Drama—"Climax!"—cbs-TV, Thursdays

at

1100

38

The Commercial and Financial Chronicle

(1426)

Continued

with the normal

from first page

beginning

are

in the rate of expansion

down

1956 Will Be

a

Year

01 Normal Growth

growth trend. We
see a slowing

severity, will be tempered. While

to

in

personal consumption, industrial
production, and the gross national
product.
They have not turned
down, but the rate of increase is
more temperate. This suggests that

foolish mis¬
should be
another
good business year.
It
should not be a year of recession
idity, for unless

but

1956

growth.

normal

of

one

some

made,

are

Now
I am

when I make that statement,

predicting that 1956 will bring
for 1955 will go
down not
as
a
year
of normal

result of the increase in

will

boom on boom,

growth but as
gence from a
was

added to

when resur¬
business recession
normal growth.
a year

raise

Index

Federal

the

of

Reserve

Production

Industrial

this year 10% above the

level lor

1954.

increase

Federal

trial

of

Reserve

in

10%
of

Index

the

Indus¬

Production

is substantially
long term growth trend.

above its
The

for this fact is that in

reason

index of

the

1954

industrial pro¬

duction fell

Definition

A

of

"Normal Growth"
I

that right here I
give you our definition of
growth."
Our country
has had a long historic record of
suppose

substantially below its
long term relation to gross na¬
tional production.
This relation¬
ship has
been reestablished
in

should

1955.

"normal

j

industrial production from 1954 to

growth.

from

based

growth

This

has

been

increases

persistent

upon

other words, the gain

In

1955

has

been

part

in

resurgence

low level and

a

part normal
We estimate that roughly

growth.

population, productivity, and
improvement in the standard of

40% of the gain this year is nor¬

people. Expressed
in terms of gross national product
this long term growth trend has
averaged over the years between
3% and 4% a year.
So for our
purposes we consider a 3% to 4%
increase
in
the
gross
national
product as "normal growth." In

resurgence.

in

living

our

opinion, 1956, should be such

our

a

of

mal

growth, and roughly 60%

Problems

The

tration

given

as

a

springboard from which to plunge
into 1956. To begin, let me state
that this has been
It has not

a

civilian boom*

been

generated by in¬
government spending or

created

been

rapid

so

on

to

fears

the

many - that

into

Le

employing re¬
This has

the economy.

by

will go

Reserve

Federal

been

ground

long.

environment

current

the

and

have

Board

the

our

has

has

It

Resurgence

It is because of these
problems that both the Adminis¬

pressed

stated

the

is

and strong.

conclusion
first, I would now like to discuss
where we are today and then use
Having

of

resurgence

problems.

straints

year.

situation

lend

should

itself

this

business

tailspin before

a

look

us

ex¬

at

these

very

prob¬

lems and appraise their "risks.
The
with

provided

resurgence

business

a.

which

it

could

labor

and

management
a

good chance of
the

reached
be

the

in

dangerous

curtailed

tive

and

decline

in

a

turn

ness

as

state

sharp

The

principal

center

about 300,000 to
for inventory and ex¬
Thus, automobile production

anticipated
effect

an

credit.

consumer

that

are

rate of

by

and
The

boom

been

captured

correc¬

an

these

these

to

into

the

repayments
on

market

stress

that

that

credit,

so

balance will

a

current

re¬

between

gap

pressure

the

is

on

the

attracting

much attention.

Another revelation of
credit

consumer

We have

in

a

our

the

of

whether

study
light.

new

found, I think,

to

questions,

we
rather exhaustive

conducted

research

the

and

puts the rise and present level of

fields

wide

answer

have

in

the

year

so

great that they have
attention. To find

so

is

It

money

for

year.

indications

next

credit extensions will

relieve

today

outlook

will

just about match the rate of

production,
housing
consumer credit next

has

The

early

new

causes

starts,

yet
will

decline

the extension of

on

the establishment of

worries

ap¬

added

payments.

the

around

conservative

us a

cars

The

downward.

automobile

avoided.

an answer

frequently asked question
the

rise

of

consumer

the

subject of the credit is not dangerously exces¬
change that is taking place in the sive. We found that the rate of
distribution of family income. The repayments
on
consumer
credit
economic
implications of these correlated closely with the num¬
ber of families in the
rhangps are far reaching. We all
$3,000 and

This brings us up to 1956. Why
will
1956 |be
a
year
of normal

growth and not one of recession?
Why will business go forward next
year but at a slower pace than in

knew in

1955?

people

Principally because Federal
Reserve policy will prevent dan¬
that

be

have

Production

we

the

How¬

next year should not be
drastically
below 1955 as many fear it will.

govern¬

The Outlook for Automobile

inventory

business

excesses

the

growth,

lower.

figure of between
6.6-million sales, to which

and

extensions

Now, What About 1956?

gerous

The first signs
see

this

even

port.

that other plans are being formu¬
lated which can be put into oper¬
ation without delay should busi¬

We be¬

success.

boom

somewhat

400,000

the

taking positive action such
demanding enactment of the
highway program. We understand

money

accumulation which has not

they

require

a

better
ten

were

until

not

was

general sort of

are

off

years

that

but

ago,

set

we

way

growth

trend

in

Therefore, the

consumer

credit

is tied in

directly with the growth

trend

it

the

down

income group.

over

today than

the

in

number

of

families

drastic correction, while increased

figures and analyzed them that

population and the rising level of
family income will sustain the
growth trend. The forces of re¬

discovered

meaning
what has been going on. What

present in 1955 will be
out, but the normal growth forces
will persist. These are the funda¬

standing of why the automobile
industry will be able to sell over

are perhaps on the
high side
currently, but the excess is not
nearly as great as many seem to

7-million

think.

mental

ple

surgence

for

reasons

there

our

other factors

are

found

optimism,
to

be

touched upon.

in
re¬

that

growing.

weakness will

keep

as

think that in this instance there is
lieve

be

should

particularly
to

year,

ment

more

concerned,

are

election

economy

cannot be

one

will

6-

apparent.

dogmatic where matters of

but

environment
demand

While I realize that

Administration,

an

of

.

be

abnormal

proach gives

in

the

should

of

year

ever,

the definite and obvious desire of

or

restraint

is not

year

a

probability is that the percentage

easy

be enough to restore balance.
Then we should not overlook

closing months of this
early next year, the ef¬
fects of Federal Reserve policy of
By

year,

the

to

Thursday, October 6, 1955

.

anticipated, the modification will

policy of restraint is taking ef¬
fect. Furthermore, with industrial
production and the gross national
product now back in balance with
their long term growth trend, the
readily to control.

This

not
a

consumer

spending and business investment

return

policy of last

money

the

takes

immediate

an

..

gave

us

better

a

this year, why
buy -1.3-million
consumer

incomes

of $3,000 and more.

As of now, the rate of
repayments
is in balance.
New credit exten¬

of
we

sions

under¬

cars

will

with

we

full

homes, and why

peo¬

The

anticipated decline in

automobile

new

purchases

next

year

will correct this distortion.

credit

So, in
dangerous a level as- our opinion, the level of consumer
many believe. Here are the facts: credit is not a serious threat to

is

We estimate that for fiscal

the

1956

not

at

as

*

will report a cash
About 90% of the new automo¬ the business outlook; and before
beyond surplus of $2- to $3-billion. As¬
biles, over 85% of the new homes, many months pass, such excesses
grants and loans abroad. The Fed¬ any possible comparable improve-,
suming no change-in taxes, the and between 75% and 80% of the as exist will have been corrected
eral Government has been a nega¬
ment in productivity.
With con¬
in an orderly manner.
surplus in fiseal 1957- could electrical
appliances,
television
tive factor, for its expenditures sumer demand
strong, business is amount to .$5- to
$7:rbillion. Such sets, etc., produced are bought by
Housing starts this year will
are off about $4-billion.
passing on the increase in labor a
prospect forecasts a definite pos-' families earning $3,000 and over approximate 1.3-million. Of these,
Another
fallacy that I think costs in the form of higher prices. sibilityr—in fact, I think I should a
somewhere between 300.000 and
year. In 1946 there were in this
should be laid to rest is that this Raw material prices have been
say probability—of a tax cut next country
15-million families with 350,000 will have been for veter¬
has been a durable goods boom, low in relation to finished goods year. One dollar of tax reduction
Under our present rules, a
incomes of $3,000 per annum and ans.
more
particularly an automobile prices so as a resit we have been generates much more than a dol¬ over.
This year there are over veteran may buy a new home for
boom.
Actually, the $14-billion experiencing a generally rising lar of consumption, so tax relief is 35-million families in this
very little down and with a long
group
increase in personal consumption trend in prices this • year.
This a very positive factor.
—an
increase of 135%. The big¬ term of years in which to pay off
trend has caused a revival of in¬
expenditures has
been fairly
When our young
Capital expenditures are in a ger spenders, of course, are in the his mortgage.
evenly distributed all long the flationary fears which viblate the strong
men
enter the service, they are
uptrend, with all indica¬ group that earns $5,000 a year and
stable
dollar
line
between
objectives of the tions
durables, nondurWhat has been going on little more than boys; and most of
pointing to continuation into over.
Administration.
V
ables, and services.
1956.
The recent and prospective here?
In
therefore, are unmarried.
1946 there were only them,
When they are discharged,
Three
Rising prices and active con¬ rise in labor costs demands in¬ 4-million families in this
major factors have
theygroup.
sumer
are mature men with the normal
demand have
stimulated creased productivity and assures Today there are close to 17-milbrought about the current expan¬
desire to marry and start a family.
sion in consumer spending. First, the accumulation of inventories. increased
expenditures for ma¬ lion, an increase of 325%.
Next
the increase in population has au¬ In the third quarter of 1954, in¬ chinery and all kinds of1 devices year (1956) the number of fami¬ That means they want a home.
ventories were being decumulated
designed to r e d u c e production lies earning $5,000 and over will They can obtain one quite easily if
tomatically raised the demand for
at an annual rate of
$4.9-billion. cdsts.
goods and services.
Secretary Humphrey has increase by 1.5-million while the they have a job. So more than
Second, the
long range growth trend in the During the current quarter, they based his demand for suspending number earning $3,000 and over three out of every ten new vet¬
are
erans
released from service this
being accumulated at a rate of accelerated amortization upon the will increase over 2-million.
standard of living calls for an in¬
creased

of

crease

in

1%%

to

per

year

consumption of goods and
services.
Third, the controls and
high tax rates in forcb during the
Korean War restrained this trend
and caused to be built up a

log of deferred demand.

said,

this

It

may

that the in¬
population will account
for about $4-billion in

year

consumer

mal

back¬

therefore,

in

crease

expenditures,

increase

increases far

wage

than $5-billion. Our studies
indicate that the rate of
inventory
more

2%

the

be

ceive

the

change

has

direct

effect upon
several elements that make
up our
economy. The trend, for
a

instance,
very closely with the
changes in the bill rate and with
employment. If the changes in the
inventory cycle can be controlled
correlates

or

moderated, the magnitude

boom

correction

or

nor¬

can

of

a

be limited.

In the

past, an inventory swing
living another $4-billion, with the from high to low has amounted to
as
much as $10-billion.
balance of about $6-billion coming
This is
out of the backlog of deferred equivalent to withdrawing from
in

the

standard

of

of

living demand.

Consumer

i

Spending

the

consumer

a

has

ent

been

increasing his expenditures, busi¬
ness

has increased its investments

by $13-billion.
the

this

increase

inventory swing accounts

$7-billion.

Inventories,

know, follow
lation

cycles
and

Of

and

pattern of

a

as

for
you

accumu¬

decumulation.

These

clearly observable
The change in di¬

are very

regular.

rection

or

total

struction

Cause of the Boom

While

economy

the

standard

the

level

more

value
or

of

of

than

80%

housing

of

con¬

one-third of the pres¬

capital expenditures.

This gives you some idea of how
important the inventory situation
is

today and how closely it should

be

watched.
I do not doubt
it is the greatest economic

that

worry

of

the

Administration.

The

in¬

ventory factor was the primary
factor in the
1937-38, the 1948-49,
and 1953-54 business
recessions. In
order to

avoid

a

serious

ter, the rate of inventory
swing is what has the lation has to be
limited.

drop la¬
accumu¬

the-s-Treasury

expectation of

no

let-down in

Effect of Wage Increases Will

activity
next
year.
We
think
that
capital expenditures
will be $2- to $3-billion higher in
1956

than

forget
are

in

in

that

one

1955.

We

capital

of the

must

Why do

for

look

we

leasing
such

the economy.

of

combination

a

(1)

The

number

of

two

Like tax reduc¬
tions, every dollar spent for cap¬

increase

ital

pro¬

salary and

con¬

this year will not be realized

duces

by industry

than

more

a

dollar of

sumption.

v

Another
states

and

scheduled
amounts

positive factor
local
to

is

are,

larger

public works, roads,
year than this.
expenditures will be $2- to
$3-billion greater in 1956 than in

and

til

under

on

buildings next

full

effect
wage

of

the

but

(2)

fore,

let

may

not

and

have

had

an

homes

1955.

$3,000

number of families earning $3,000
and over increased from 27-mil-

consumer

The full effect of wages and sal¬
ary increases will not be realized
until next year.
Add to this a

lion

reduction in taxes, and an increase
in disposable income is in
pros¬

an

the

pect.

$3,000 and

sumer

We estimate
will

that

the

spend between

and

$265-billion next year as
pared with $250-billion this
These

are

several

of

the

con¬

$260com¬

year.

posi¬

prices;

and

yet

number

500,000.
for

business

increase in

recession

ing

and

of

pretty

Listen

tween

this

what

this

dramatic

still
buy

rate

next

suggests
close to

homes in 1956.
1947
one-

and
and

1954,

the

two-family

bought by families in the
and

over

income

group
and 3%.

moderate

allowance

for

bought

1.1-million

estimate

1955, it still is
-

to

the

high

and

1.2-million

housing starts will be made. While

sound

ground.

it

will

that
as

by those earning
$3,000, and adding multifamily units, the indications point
strongly to a year in which be¬

over

on

of

a

homes

unemployment; but

rest

quite

-less than

families earning
actually increased
So I think our projections

1956

assume

be

Using the lower figure and mak¬

to

moderate

tighter today
earlier in the year,
still liberal. There¬

fluctuated between 2"%%

the

35-million, or about 30%.
Furthermore, in 1954 we had a

are
us

new

number

have full employment." Well,
1951 we have had stability

little

were

Between

since
in

men
from
The regulations
home may be fi¬

a

a

veterans

300,000

inflation

Such

900,000

However,

year.

un¬

that

We

they
they

substantial

"Sure, naturally the level has

risen.

are

increases granted

1956.

say:

which

nanced

than

will

Now if you are a cynic you
may

that

communities

spend" much

The

by almost 1-million.

about

the armed forces.

im¬

things:

families

of

homes.

new

Next year the plans call for re¬

Come in 1956

portant increases in 1956? Because

not

expenditures

most potent forces

investment

buying

year are

eco¬

nomic

is
a

lower

than

for

sizable figure. 3

Thus, as in the case of consumer
credit, so in the case of mortgage

tive factors supporting the
improvement in the financial loan demand, I think we are
expec¬
Out of the problems of
rising tation of continued growth next status of the consumer means to rounding the peak.
Next year,
prices caused by higher labor costs
were
year.
In addition, there are cer¬ the automobile and building in¬ therefore, should see some decline
being drawn down or deand the
urge to accumulate in¬ tain nonstatistical factors which dustries and to consumer credit.
in the demand for consumer credit
cumulated at an annual rate of
ventories has come the Adminis¬ are
equally important. Once the
We have found that between and mortgage loans, thereby re¬
$3-billion, whereas this year they
tration's and Federal Reserve trend of
are being accumulated at an
inventory accumulation 15% and 17%% of the number of ducing the pressure on the money
an¬
Board's attempts to restrain the
begins to level off, the need for families in the $3,000 and over market and providing an addi¬
nual rate of $4-billion.
Thus, so boom. The
objective is not to kill the Federal Reserve Board to con¬ income
tional justification, for modifica¬
far as business
group buy 90% of the new
activity is con¬ the boom or
throw business into tinue its
policy of credit restraint passenger cars sold. The percen- tion in Federal Reserve policy.
•
cerned, the effect is equal to the a
decline but to try to hold the in¬ will be
moderated. The direction, age in 1955 will be about
total of the swing. The
17%%; '. This leads us right into the sub-t
combined crease in
business activity in line which has been toward
increasing but inasmuch as 1956 will not be ject of consumer savings. A modreal

effect

stance,

a-

on

year

business.
ago




For

in¬

inventories

182

Volume

Number 5470

.

.

The Commercial and Financial Chronicle

.

(1427)

decline

erate
and

in

botti

automobile

housing sales next

cates

increase

an

in

indi¬

year

the

of

rate

savings as a logical cor¬
ollary. The savings figure includes
consumer

instalment

must

Also, we have the
strong probability of lower taxes

to

go

up.

into

take

account, to
nothing of the higher level of
sonal income

resulting from
and salary increases.
;

say
per¬

wage

quarter of 1955

income.

personal

was

It

in

look for

Thus

we

Commodity Prices in 1956

Up to now, I have not said any¬
thing about commodity prices next
year. Prices are on their way up.
Productivity cannot catch up with
*

increases

in

These

ations

will

labor

level of

price

should

about

be

pre¬

2%

for

the

year.
: So
we come to the end of the
story, and it is time to pull all
these
ideas
and
projections to¬
gether. What we arrive at is an

estimate
uct

for

of

billion,

year

4%

above this year. In

terms of industrial

estimate

in

the

national prod¬
of about $400-

increase of $15-billion

an

almost

or

gross

next

an

production,

average

Federal

of about

Reserve

we

143

Index

as

compared

with probably 137 for
gain of about 4%. There¬
we say that 1956 will be a

1955,
fore,

month

to

a

000

ht and

were

Exchange,

etailed

received

were

083,-

shares, and 1,813

ese

classified

were

institu¬

as

tional volume.

Institutional
amounted
volume.

transactions

15.6%

to

On

On two days covered
by a study
in

those

of total

share

two

same-

days

in June, public individuals
dealing
directly with member firms ac¬

volume
At

inventory, farm
prices versus industrial prices, and
credit
for
housing and durable
goods.
Furthermore, the opera¬
tions of the policy-makers, par¬
ticularly in the field of money
management, do not always work
out as smoothly as is hoped. How¬
ever, if in 1956 we get a really
poor quarter, it will be because of
the inventory situation more than
anything else. This, h o w e v e r,
would
be
a
temporary
matter.
areas

as

the bulk of

share volume, or 59.2%

of Stock

1952,

totaled

the

all

other

of the to¬

Exchange members,

mem¬

mutual

funds; third, estates at
10.3%; fourth, pension funds at
9.5%; fifth, closed-end investment
companies at 8.5%; and sixth, in¬

institutional

1,135,000

shares.

time

of the next
study,
days in March, 1953, institu¬

two

vestment
clubs
at
5.6%.
These
figures again exclude orders exe¬

to

1,324,1954, to

000

shares; in March,
shares;
in
December,
1954, to 1,751,000 shares; and in
June, this year, to 1,813,000 shares.

cuted

by banks for individuals.

1,413,000

-

executed by banks for

showed

individual

Fire

customers.

accounted

for

ber firms and nonmember broker-

institutional volume

dealers amounted to 25.2%.

Ranking

second

at

of

62,600

all

shares

June 8-15.

on

of 56,100 shares.
casualty companies
up from 32,100 shares to
shares and closed-end in¬

vestment

17.4%

13.9%

to

however,
shares

were

total

a

and

moved

Share volume by personal trust
funds

Life insurance companies bought
and sold 17,600 shares on two days

in September, 1952; the June study

These figures include transactions

tal. Share volume for the accounts

such

for

September,

tional volume increased

counted

one

to

companies from 50,300
101,700. Mutual funds,
dipped from 223,400
194,300 shares.

Therefore, regardless of interme¬
diate fluctuations, 1956 on balance
should be a good business year.
I have been very

feel

you

from

the

on

reports

of regular, even, progres¬
growth is improbable. As I
have pointed out, gaps have been

costs

further increase in the

a

be

sive

but

think

apply to the
What the fluctu¬

month, or quarter to quarter, I do
not pretend to know nor wish to
speculate upon. That the year will
be

13,580,900 shares
sold

shares

whole.

year as a

comments

I

year

comments

granted this year and anticipated
next year.
I am not suggesting
anything like a runaway inflation,
pared for

a

recession.

in

savings.
We estimate that per¬
sonal savings will be higher by
about $5-billion; in other
words,
up from $18-billion to $23-billion.

the

not

but
of growth and

us

increase in the rate of

an

the less

none

10%

year,

to

seems

spending.

the

developing along lines that usu¬
ally require correction. These are

will be greater than the gain

consumer

than

less

growth experienced this

of

sec¬

that next year the increase in per¬
sonal income and disposable in¬
come

growth

6.6%

The rate of savings in the

ond

of

credit

repayments, so
if they are to be in balance with
credit extensions, personal savings

of "normal growth"—a rate

year

have

not

There

or

that

one

must

should

and

any

make.

If

next

President

summer

made

punches.
qualification that I

pulled

is

I

definite in the;

have

I

declare

that

spring

Eisenhower
he

is

not

a

candidate for reelection, then con¬
fidence which has been so care¬

fully nurtured by his Administra¬
tion would receive
reaction
a

could

setback. The

a

be

pronounced for
time, with repercussions on busi¬

and capitalistic sentiment.
Well, that is my story. That you
may find it helpful as you tackle
ness

individual problems is

your many

sincere

my

pleasure

wish.

has

It

been

a

have

participated in
this Convention, and you have my
heartiest good wishes for its suc¬
to

cess.

Survey Reveals Sharp Increase in Stock Buying
By Institutional Investors
The

volume

of

shares

bought

companies

and sold

growth

on

the

by institutional investors
the New York Stock Exchange

has

increased

—since

sharply—by

59.7%

1952,

Keith Funston

Exchange from

(3)

Exchange,

of

ing the results
of a special

tions

study.

tutional

Findings
on

of

ries

of

to

of

Keith

firm

Funston

breakdown
on

and

The uptrend in institutional
in

Exchange

despite

vol¬
substantial

total volume

during

each

on

the

At present

insti¬

under
figures

100

larger than in

ex-

except Canada. Here is proof positive that

banks for

the

Ex¬

commercial

companies—the
handled directly by

possible

American

is

before made available.

study, Mr. Funston
said, analyzes for the first time the
Exchange could provide bet¬
tfie various types of institutional ter
facilities, or create more effi¬
business handled by brokers, banks
cient procedures, for
handling in¬
and trust companies.
It also dis¬
stitutional transactions.
closes the investment relationship

"The

Stock

.

.

education, health, sanitation and

construction of communication and trans¬

portation systems, United Fruit has been
instrumental

their

institutional

and

individual

customers.
other

Some
survey

(1)

highlights

the

of

include:
Of

16

institutions

can

major categories of

for

which

data

were

available, personal trust
funds, mutual funds, estates, pen¬
sion funds, closed-end investment
companies and investment clubs
accounted

for about

65.2%

of

all

institutional share volume.

Life

insurance

companies,
fire and casualty insurance com¬
(2)

panies and closed-end investment




a

multi-crop

acres

of jungle into pro¬

Such activities

are

not the whole answer.

But the results, measured in terms of im¬

nation

proved living conditions and the develop¬

hardly be exaggerated; for

no

completely independent. Rather is it inter¬

dependent with the countries that share its
needs and

aspirations. Such mutuality of in¬

terest has

forged

powerful link between

a

the Americas, for the

good earth to the south

ment

purchase in abun¬

of private aid

program

most worthwhile
can

can

be among the

investmentsNorth America

make.

It is this

produces in abundance while the good mar¬
kets of North America

of useful skills, do demonstrate that a

well-planned and efficiently administered

tinue

company's firm intention to

usefully to

serve

the Americas

in strict accordance with the

Exchange," he
added, "is usually regarded as a
marketplace primarily for indi¬

dance. Each

members

seeking to better conditions in countries

toward

and, to

a

where their

con¬

...

and,

benefit.

of

the

public—

large extent, this is true.

This study,

made

establishing

private funds in Latin Amer¬

vidual

of banks and trust companies with

in

in Middle America and transform¬

ductive farm lands.

Hemisphere.

The need for

a

fields of

ing thousands of

.

great benefit of every portion of the

engaged in

public works. In addition to this and the

government loans to neighbor nations
to the

is

provided

that with proper en¬

many years

of privately financed aid in the local

economy

Western

"The survey," Mr. Funston ex¬
plained, "was made in large part
to get basic data to determine how

new

strong indication

ica

which

sister republics. More, it

Company has for
program

couragement private capital can supplant

trust

never

our

only

companies

other part of the world

any

business is anxious to promote

production in

by the close
cooperation of leading banks and
data

U. S. investments in Latin

America, totaling six billions of dollars, are

member firms of the Exchange.

two-day

period studied.
The

all

trust

was

MUTUAL NEEDS

100

of

through

BY

from

Mr. Funston said the survey was

15.

made

variations

volume

offices

balance

detailed

occurred

36.9%;
These

EFFORT

Transac¬

channeled to member

was

banks

to

institutional transactions

ume

of

volume;

3.4%.

institutional

and go¬

June 8 and

20.7%

shares,

change

selected in ad¬

a

for

share

BY

AND

More than one-third of all

(4)

cov¬

ing back
1952, plus

shares.

more

LINKED

in blocks

individuals.

ering two days
vance

on

1955.

to

V;ivx
was

c'u-^e orders handled by

five

each

500

shares,

market analy¬
ses,

or

'j0

involving 500 to 1,000 shares

accounted

se¬

a

1,000

JW

cent of all

per

institutional volume

the study were

1952

trend,-

Thirty-nine

stated in issu¬

based

volume

the other hand, share volume
by mutual funds showed a slight
downward

....

decided

a

shar*1

thei>

On

President of
the

showed

in

Many of

international industries

are

activity centers. United Fruit

spirit of laws

of the countries wherein it operates, to

future of

a

work

ever-increasing mutual

J

though, spells out the

importance of

our

marketplace to

such institutional investors

as

pen¬

United

sion

funds, life insurance, fire and
casualty companies, mutual sav¬
ings banks, mutual funds, personal
trusts,

helps the other.

our

guardianships, in¬
clubs, educational insti¬
tutions, religious foundations and
profit sharing plans."

Fruit

Company"

General Offices: 80 Federal

it

estates,

Street, Boston 10

vestment

The

June

study
8

and

covered

15,

when

two
a

days,

total

of

BRITISH

HONDURAS

ECUADOR

•

EL

•

COLOMBIA

SALVADOR

NICARAGUA

39

•

•

•

COSTA

RICA

GUATEMALA
PANAMA

•

•

•

CUBA

•

HONDURAS
PANAMA

DOMINICAN
•

CANAL

JAMAICA,
ZONE

REPUBLIC

B.W.I.

40

The Commercial and Financial Chronicle

(1428)

Battle

The

institution

Lies Ahead

Every conceivable method of
educating and informing the lay
public as to the reasons why our

will

national charter.

operate under a
Our approval is

required for consolidations or
where' a national bank

not

mergers

consolidates with a state
Thirty-one states have
italism," assure the best job of pro¬
ducing and distributing the fruits passed legislation providing for
of our toil and the bounties of the such consolidations and permitting

of life, and

way

our

"creative cap¬

merges or

bank.

By JOHN BUTTON

The Market Break

market

opinions
tilt

lather

at

there

Possibly

mentators who know the facts and

others

few of the
observations
I
will
make
this
week. If enough of us in the inwith

a

beconcerned about these things

come

someday

business

vestment

in our public re3ations (long overdue) may be accomplished.
ah improvement

will remember that during

You

Fulbright investigation there
a
sharp market break, also

the
was

the

the public

last week, and

one

acted about the same both
times.
Headlines overemphasized
press

situation

the

in

billions

wiped

by announcing that
market values were

if

and

out,

were

you

I

of addi-

one

and

securities

stocks.

common

10

tJ£X?s

be

of

distrust

tional

"Those poor suckers who have
bought stocks, Wall Street taking
them in again," must have been
on

millions

as

the

the

minds

uninformed

of

tickers

news

mon

in

IN THIS COUNTRY. The leftists,
the state socialists, the political
schemers and demagogues, those
who play upon the gullibility of
the uninformed, are always busy
telling their distorted tales.
~~

~

Qn

receive

"The

bill,

holding

and

contro-

our

views

are

I

troller, such legislation should

We

arbitrary limitations on
expansion within the banking

discretion

the

to

of

tion is requested. There should
be no attempt to base restrictions

laws

on

of

graphical

shares

of

outstand¬

of the common stocks
the
sharpest
market
during this last downward
in
the
market
changed

many

had

move

bands.

lost

Only the people who sold,
made
money,
only the

or

transactions themselves count. The
rest is all on paper.
turn

pro-

ative

to bank mergers and that
should give this matter your

you

even

over

4

.

the Judiciary on May 17, 1955:

„

.

the -House Committee on

tee

written
.

No

could

one

on Consolidations, Mergers, Purchases and
Sales, and Conversions—1950 to May 1, 1955

No. of

Total Resources

Banks

-Type-

outstanding
common
stocks
of
many of the market leaders in one
day—there aren't that many buy¬
ers around.
The papers should be
more factual in reporting market
movements.

National

19

National banks merged with other natl. banks
National banks purchased by other natl. banks

banks

consolidated

There is a large segment of our
population who do not know why
we are so prosperous or why cre¬
ative
capitalism
is
working in
this country. There are men lurk¬
ing in thev shadows, and some
right up front among the leftwing crowd, in our political par¬
ties, who for one reason or an¬
other

would

excuse

with

and

into

other national banks

184

$935

Subtotal

65

into

953

1,116

$3,004

-

State-chartered
national

banks

consolidated

with

and

banks_____

10

State-chartered banks merged with natl. banks

161

State-chartered banks purch. by natl. banks--.

608

192

Subtotal

50

National

68

Natl.

118

seize

They don't have to go

cur

sympathizers.
own

,

with

far to

very

Regardless of

our

connection

investment

do,

securities

we

the

business, all of
of

us

reasons

"ereativp
creatlve

who appreciate
for

the

success

mnitniicm"
capitalism

+M*
this

m

nation, and also the vital imporlance

of

a

dence

in

this

our

belief

tion

_

banks

records

the

banks

purch.

or

2,220

parties from making formal
applications.
In general, it has
observation

our

$7,464

_________

by State-chartered

banks

volving national banks.

utmost

strong

to

public

system,

maintain

healthy, public confidence




confi-

should
a

do

virile,

in

com-

to

the

$13,478

________________

sent

institutions of

494

less than 3y2%

number of banks

companies,

before; that competition

ever

banking institutions dur¬

or

fixed

purchases,

policy,

as a

but

matter

have

en-

given

approval

where

we

con-

was

legal

tions bas been accentuated, of and fair to the stockholders of
course> b^ the several larger both institutions, and where we
mer£ers which were recently con- found no indication of detriment
total
were

resources

of

over

We have not undertaken to favor or to oppose

to the public interest,
Under

$6.9-billion

absorbed by other banks.

mergers, consoli-

17,
f,

has increased, and

years

matter

of

This is

importance to

great

banking system, and I believe
should

give

and

views

your

it careful

to

are

to

see

the

1950,

amendment

sometimes

made

it

of

called

Aug.

the

ful

the

Report,

many

What

I

known

to

am

on

most grate¬

kindnesses

every

courtesies

I

visit, and

extended.

enjoy particularly is the

opportunity

Gross

billion,

better

get

to

ac¬

continuing

re¬

product: $384.8-

national

Total

are

peak.
income:

$320.3-

income:

$301.2-

peak.

a

personal

billion, very slightly
May 1955 peak.

below

Per capita disposable
$267.1-billion, a peak.

the

income:*

Gross realized farm

Gross

in 1951.

invest¬

domestic

private

the annual rate of $60.9-

at

ment

billion, almost
early 1951.

to the peak of

up

?

.

Expenditures for new plant ancB
equipment: $28.3-billion, a peak.
Corporate profits at the annual
of $42.5-billion, a peak.

rate

Employment: 67.5-m i 11 i o n, a
peak.
Average kourly earnings in se¬
lected industries at

close to the

or

peak.
Industrial

production, Federal
140, a peak.

Reserve Index:

construction

New

of

rate

at

an

annual

off

slightly
of 1955.

$42-billion,

from the peak

Commercial bank loans and in¬
vestments:
off from

$155.5-billion, slightly
peak of $156.2 of Janu¬

a

1955.

ary
'

Consumer credit:

$32.5-billion;

peak.

a

^

All

reflects

this

of

remarkable

t i

a c

state

of'

which

is;,

a

ft y

v

pleasant to note and record. I have
found some people in my travels
who resent any effort to place any
limits, restraints, or moderating
influences

upon

expansion of

an

activity which they apparently be¬
lieve knows no bounds. They are
not the bankers, for bankers un¬
that there

derstand

speed

the

upon

nomic machine

that

can

it

as

are

limitations

which the eco¬
safely achieve*

is

well

extensions sound

credit

to

keep

and well

considered, it is also well to avoid
in
business
expansion.

excesses

Credit

available for

be

must

and for the conduct
of the tremendous business we are

sound projects

carrying on, but it should be fur¬
nished on a basis which is safe
leader

the

borrower.

and

can

beneficial for.

and
.

from

Departure

hurts

credit

sound

both

parties

lead to upsets in the gen¬

With such

set-up, and to

our

banking

note the progress

earlier,

our

banking

sys¬

something to be proud of.

high rate of activ¬

a

time

to

temper

reasonable caution.
you

optimism with
I commend to

the words of the ancient Ro-,

mari, Horace,

who did

a

masterly

job of expressing in verse a pre¬
cept

from

Ode

excellent character of

a

ity, it seems obvious that this is

It is good to see at first hand the

tem is

national

Total

billion,

benefit.

As I said

the

items listed in the table,

a

quainted with bankers and banks.

is required for a merger or

where

that for most

contents, peak figures
ported; e.g.:

the

which is being made everywhere.

solidation

is

the Economic

on

it is noted

of

for

"two-way street" law, Our approval
con-

.

traveling

in the statistical picture
activities.
Re¬

of the 32

that

different parts

great

have received
the

in

sees

Joint Committee

privileged to make

country, and

for

ac¬

;

the Economic Indicators
August 1955, prepared for the

con¬

considering the

series of trips to

of the

that

eral economy.

I have been

eluded that the merger

summated m New York City, in
which three national banks with

large and small,

legislation.

'7?! each individual case, and have
dea,™red. *?. w<;igh the mfrits of

operating today,

that credit

readily avail¬

more

are

credit

and

seem

those who will be

of the total

The importance of these transac-

the

of

a

Comptroller.

fairly large number of dations,

the

banks

most

needs

continuing to increase.

a
a

that

ciations, insurance companies, fi¬

than

than
been

economic

our

transactions in-

235

available

belief

the

competing

you

$132

not

carries

actively to
banking
public in the matter of facilities
of all kinds, and particularly in
making credit available to all
types of borrowers. Also I find
everywhere that there is impor¬
tant competition
from other fi¬
nancing institutions—mutual sav¬
ings banks in those states which
have them, savings and loan asso¬

our

State-chartered banks convert, into natl. banks
*Data

of

and keener than ever before.

is

8,254

Natl. banks converted into State-chart'd banks

yet

not

have

memory

are

have

we

one

reflected

the

have been con¬
substantially
lessened competition; but rather
we find that in these present days,
banking competition is more vig¬

ing recent

790

11

This is

that

which

mergers

My

better

even

which

What

ested

between

merged with

22

banks,

inter¬

dissuaded

instances

orous

manner

of $36.9-billion

su¬

lessening of competition or tend¬
ency to monopoly; and we have in

been

care

customed.

In approving

us, we have had in
principles set forth in
Clayton Act which
opposition to substantial

of

7

nat¬
of

our

income, the
one
important exception: $33.3billion, down 9.75% from a peak

the

Sec.

man¬

which

constantly growing population in

to

and

__.

consolidated

Totals for absorbed banks in
.

the

before

mind

a

progress

bank

the

in

pervisory agencies.
come

the

but it is
jurisdic¬

primary

rest

pos¬

consolidations and mergers which

sideration
494

the

from

Justice

of

should

taken

be

that

it

which

able to borrowers,

State banks merged, consolidated, or purchased
with or by other State-chartered banks

any

,

that

the solid

upon

particular interest in the

.,

worx

Department
our

of

productive machinery to
ural
resources,
to take

by

of

idea that any

our

review

should

facilities

Subtotal

*

18c

Insurance

unions. It would

to discredit "Wall Street."

find

Deposit

of

nance

$1,451

117

State-chartered banks
We Are Gaining on Socialism

(Millions)

64

ten percent of the

have

made

be

it

section

of

It would not be

sesses

know that it is

we

the nation is making in applying
its
resources
of
manpower
and

clarification of

Act,
leaving the matter of approvals of
bank mergers and consolidations
in the bank supervisory agencies.

meet

Data

101

national

under

that

Federal

summated

a

number

ing of

limitations

into the law.

complete misrep¬
resentation of the facts.
Only a
small one percent or less, of the

banks with na¬

of state

confirmed

wiped out is

period,

same

back over
fifty years of banking history, and
expansion on
the careful attention.
The following
my poses of observation have been
the
various
states is a tabulation
Which we submit- favorable. My travels around the
ted t0 th*
Subcommit- country in the past two years have

"Stock

To state that billions have been

break

a

the

consolidations and

78

banks

power

UCgltc*

viewing

During

some

strongly against

are

banks,

the

Harket."

that

other federal

administering super v i s o r y
Bank Mergers
agency, which will be able to
We believe that you are and
act in the light of conditions should be interested in the matter
as
they exist at the time ac- of possible federal legislation rel-

fourth estate to their senses when

total

state

yet

ifestation

of

amendment

vision which would give to the
states authority to control who
shall own the stock of national

should leave the
of permissible expan-

but

extent

the

and

time of its pas¬

suggested

on

Uigll

city which I have visited,
of growth and progress
impressive, and even astonish¬
ing. The growth is truly amazing,

1950 to Aug. 31,

We think that a

making the final decision."

be reasonable and should place

sion

power

d

every

the

the law is desirable, and we

supervisory
agencies and the appropriate
state
banking authorities
should be given an opportu¬
nity to comment upon appli¬
cations affecting banks within
their respective jurisdictions,
and that their opinions should
be considered by the agency

businesses other than banking.
In the opinion of the Comp¬

field,

veto

no

IU

are

a

charter.

banking au¬
thorities. The legislation
should specify, however, that
the

engaging in

on

in

or

company

and restraints

be

up

evidence

Aug. 17,

were

tional

its decisions in other agencies

set

tion of banks and bank stocks

lightly. That
Lind of talk would bring some of
the
John
Barrymore's
of
the

the

ted

gcdi CU

activity and efficiency, and is'
doing a great job. In practically

national system

banks with state banks under state

Thursday, October 6, 1955

.

of

merger, or con¬

passage of this law permit¬
60 consolidations of national

sage on

legislation

should

legislation
which would provide federal
supervisory control over ex¬
pansion through the acquisi¬

so

about

The

to

**

a

version, without the approval of
the Comptroller of the Currency.

charter from
;

should be ad¬
ministered by a single super¬
visory agency, and there

Comptroller of the Cur¬
rency continues to favor bank

from the securi¬
is something they

write

It is now pos¬

state official.

any

of

approval

sible in those states for a national

there

"The

business

they

they

stock

32

no

lions

regard

imp0rlant

company

press

business

the

of
■

forth briefly in our annual report:

and explain to them
printers ink that the mil¬
of
dollars
of
advertising

ties

~

versiai matter of the bank holding

in cold

shouldn't

torical
reporting
market.

House of Representatives,

get together with the leaders

of the

~

adjusted, untrue, and highly his-

favorable consideration in the

once

investment

the

"

principle and courage should join
us.
Moreover, the press of this
country should refrain from mal-

Situation Regarding
The National Banks

Someday, the responsible lead¬
of

ul-

for

the

without

mergers

country to create.

ers

them

national

under

banks

charter

1955.

sort of distorted

mav

"

Continued from page

news
us

distort

don't

tional

bank

that a "huge
again. This
publicity, placed
on the press wires and relayed in
every city, town and hamlet in
the county can materially impair
public
confidence
in
common
stocks, a confidence that has taken
years
of patient advertising by
investment firms throughout the
startling

crash" had hit

who

state banks to consolidate with na¬

to leave the
funds needed for the growth of terior reasons or for selfish ones,
PRIVATELY OWNED BUSINESS And the politicians who have by consolidation,

out

ground

ability to supply the capital

our

a

member of the lay public the reaction could only

con¬

stantly by speakers for business,
by enlightened educators, by corn-

windmills,

some

are

who will agree

used

be

but markets; in our corporations; and

such

as

few

a

should

Lord,

stock investments; in orderly

will not deal with

This column

good

..

which

XVI, to
So

we

all

may

In the closing lines of his

Licinius, he wrote:

wisely, when yourself
you find

Scudding before too fair
a wind,
Take in

a

reef

or

two.

Volume 182

Number 5470

Continued

from first

..

.

Financial Chronicle

The Commercial and

page

(1429)

tire

- •

were

the

the

of

First

to

occur

same

in several

if they
areas

time.

.

at

r::\

"The efforts of the Federal Re¬

ABA Holds 81st Convention
dent

especially

economy,

~

serve

with

authorities

to

prevent

in¬

jurious credit expansion deserve
commendation and the support of

the

monetary authorities and the
can
influence only to a

lead to continued budgetary def¬

banks

limited

extent.

During

icits during

period
of marked prosperity, the avoid-'
of

afice

boom

a

calls

for

Chicago.

National

Bank

Cocke,

Vice-

Erie

President of the Board and Chief
Executive Officer of the Fulton

"Banking will

ingenuity
A

ness.

keep

pace

science and busi¬
strong and virile bank¬
in

all groups in

.

States

President

resources.

ber

mem¬

a

the

of

Association; and in
States, only one bank is a

seven

non-member.

The

with

States

100%

membership are Arizona,
Arkansas,
Colorado,
Delaware,

Georgia, Idaho, Louisiana, Mary¬
land, Mississippi, Montana, Ne¬

vada, New Jersey, New Mexico,
Oregon, Utah, Vermont, Virginia,
Washington, and Wyoming.
The ABA has members in every

State in the Union and in Alaska,

Brazil,

Bermuda,

Canada,

Cuba,

Session

General
Hilton

is to

resolution

of the

to

Presi¬

sent

Eisenhower.

dent

The resolution

National

First

Ex¬

of Roanoke, Roan¬

Bank

change

V-x// f

\

The

Annual Convention of

81st

President of

the United States has
with a sudden ill¬

Venezuela, and the Virgin Islands.

ness.

stricken

been

We, the members of the Associa¬
Address

Association, Fred F. Florence de¬

with

coupled

hope,

he

prayers,

our

be restored to
his usual good health.
soon

may

acceptance:
"Ladies

gentlemen, in ac¬
cepting the office of the Presi¬
dency of the American Bankers
Association, I have a deep feel¬
ing of responsibility and humility.
I appreciate the many manifesta¬
tions
of
friendship,
encourage¬
ment, and cooperation that you
have
so
generously
bestowed
upon me throughout my banking
career.

ferred

on

now con¬

presents a rare and

me

splendid opportunity for devoted
service to
work
to

Association.

our

devotedly
and

preserve

finest

so

you

the

of

"Our

American

of

nation.

our

14,000

medium-sized

banks,

banks

repre¬

of small and
as

faithfully

it represents the larger banks.

We

continue

must

to

advocate

policies that warrant the support
every single
bank — national
and state—in every hamlet and in
of

city

every

Our

of

great nation.
providing con¬
lies
unanimity and wisdom

the

financial leadership

with which
"The
many

we

ship.

We
to

must
the

strengthening
have

fnost
We

aging
of

made

devote

our

recent

our

our

ef¬

in

country the

the

world.

challenge of man¬
affairs so as to retain

our

the

years.

economic

We

institutions

gains

must

con¬

on

uni¬

formly safe, solid, and
tive

leader¬

the

enhance

duct

will provide

banking

preservation
and
of those freedoms

prosperous

face

and

year

for

a

construc¬

basis.




Commis¬

Policy
issued

ABA

Sept.

on

of the statement follows:

Americans

"We

are

exceptionally

joying

now

en¬

prosperous
for the fu¬

task

Our

ture is to maintain

prosperity and

time

while at the same
avoiding further inflation.
growth

"This
central
stable

should

be

objective.

achieved,

every

the

doubt
on

great

page

42

FIRST to revolutionize
steel

cutting operations

FIRST ever since
whole

A

concept of machining steel was

new

introduced, 16
sintered

years

in

in

the

.years

the

from

past

experi¬

however, that periods of
prosperity often produce excesses
ence,

that

lead

to

this,

it

ignore

trouble.

would

potential

which

could

the stability
country.

"While

the

no

sooner

one

can

or

time

a

foolish

trouble

danger
of the

At

be

spots

later

and

to

many

times

shop automation

,

obstacle to

was overcome.

From this first Kennametal

composition has

whole series of man-made miracle metals.

grown a

made

of

today's tungsten-base carbide

compositions have
resistance

metal

.

Machining costs dropped. Maintenance

machine

Parts

.

long. Production

as

even

shock.

to

as

greater strength and

They

achieving

are

tools, dies and

wear

spec¬

parts in

working, manufacturing and mining

operations.
Kentanium,*
bide,

a

super-hard, titanium-base

highly resistant to

car¬

heat and corrosion,

today is pushing through thermal barriers which
have

seriously limited improvement in

industrial

many

operations.

Other Kennametal compositions are created
for

specific applications where great strength,

hardness, resistance to heat, impact, abrasion,
corrosion

or

If yours
any

tell

combination of these properties

any

required.

one
us

is

or

a
a

problem which

about it.

be solved by

Adapting Kennametal to the

specific needs of industry is
our

may

combination of these properties,

an

essential phase of

business. Write: Kennametal Inc., Latrobe,

en¬

growih

Pennsylvania.

* Registered Trademark

foresee what

future

holds, there appear to
be at present five principal areas
in

they lasted

soared.

a

high-Brinell stock from three to

and downtime shrank. The greatest

are

intervention by government.
know

and

tacular results

increasing benefits
of our dynamic and tremendously
productive economy.
"With
the
exception of some
weakness in agriculture, our pres¬
ent prosperity is broadly based.
The recovery and growth of the
past year attest the strength and
resilience of the economy.
It is
highly significant that this up¬
swing occurred without drastic
"We

by tools made of

ago,

carbide called Kennametal.

tungsten

common

part of the popu¬

share

can

our

If a reasonably
growth can be

economic

like

act.

coming
tests

forts

that

The text

our

in

strength

structive
in

the

of

ahead

sents the great mass

as

Economic

27,
a
statement
in
which
it
pointed out that now is "a time
for vigilance."

lation

system
great and

Association, consisting of

than

more

sion

banking

to

lasting contributions to the wel¬
fare

The

make

our

continue

can

Continued

ten times faster than tools made of steel

Commission

Policy

I shall

with all of
strengthen

traditions

banking
can

one

KENNAMETAL

Economic

the

of

Statement

conditions.

have

"No

*

These tools cut

and

"The honor you

also
require
a
responsibility on
the part of those who shape pol¬
icies in our economy.
Bankers,
business men, union leaders, and
public officials should be con¬
stantly aware of the economic im¬
plications of their actions. The
need is for statesmanship.
social

Eisenhower

faith in him. We entertain the

that

following remarks of

President

to

express
our

the

times

of

tion, in general assembly, desire to

Upon his inauguration as Presi¬
dent
of the
American Bankers
livered

"The

sense

A

by the news that the

ance

to

tempered

realism and self-restraint.

oke, Va., Committee Chairman.

is saddened

Accept¬

calls

C.

by

Britain, Hawaii, Honduras, India,
Japan, Mexico, Philippine Islands,
Puerto
Rico, Salvador, Tangier,

President's

strive

that

should
all
keep our enthusiasms
with an admixture of
We

Chairman of the

Cocke,

of The

Board

for

Committee

Resolution
Francis

presented to
the
ABA's

was

Convention

the

copy

A

be

Conrad

The

at

Sept. 26.

on

its

at

the American Bankers Association

New

situation

the
First

adopted

resolution

following

France, French West Indies, Great

The

a

prudence.

Wished

Eisenhower

Convention

The

bank is

every

is

"This
for

Quick Recovery

In 19 States and the District of

Columbia,

timism.

and

99% of the nation's banking

over

eco¬

ticularly deserve careful watch¬
ing over the period ahead.
But
they are not necessarily the only
ones.
Others could easily develop.
"Vigilance, therefore, will be
needed, not only with respect to
these five areas, but with respect
to all segments of the economy.
In
general, the problem is to
avoid excesses.
Today the main
thing we have to fear is over-op¬

on

the part of business management.
"Unwise policies with respect
the community.
to wages can have seriously un"Banks have special responsi¬
ing system will serve as a safe bilities in this area, not only to stabilizing effects upon the econ¬
National Bank, Atlanta, Ga., was anchor to the business economy
Management
and
labor
support
the
Federal
Reserve's omy.
elected
Vice-President,
and of our nation, as well as to our flexible monetary policy, but also share a responsibility to the pub¬
George R. Boyles, Chairman of government.' We shall maintain to help to maintain the quality of lic to avoid too rapid wage in¬
the Board of the Merchants Na¬ the
enterprise and strength of credit. These responsibilities are creases which would raise living
tional
Bank
of
shared by other types of credit costs for every one and could un¬
Chicago,
was American banking so as to meet
elected Treasurer for the ensuing
adequately the financial require¬ agencies — governmental as well dermine economic stability.
ments
of our growing
"Excessive ^speculation
year.
domestic as private. Indeed, a large por¬
in the
It was announced by Glen C.
of
the
economy,
and also our respon¬ tion
responsibility
for stock market has on numerous oc-1
in
the
international avoiding unsound credit exten¬ casions led to trouble for the en¬
Mellinger, Chairman of the As¬ sibilities
sociation's Organization Commit¬ sphere.
sion
lies
with
governmental tire economy. The developments
"1956 promises to be an event¬
tee, tha^ 17,140 banks and branches
agencies and with nonbank lend¬ of the past year emphasize the
were
members of the ABA on ful year for the American people
continuing
to
guard
ers,
especially in the fields of need for
Aug. 31, close of the Association and for American banking. Cou¬ real estate and consumer credit.
against a repetition of this fa¬
year. Mr. Mellinger is Vice-Presi¬
"It is also a responsibility of miliar pattern.
rageous
and constructive finan¬
dent of The Detroit Bank, De¬
cial leadership is essential if we banks and other lenders to coun¬
"To contribute to the stability
troit, Mich.
are to realize fully our great po¬
sel
with
prospective borrowers of the economy at a time such as
The membership is made up of
tentialities.
In
this
endeavor, and to urge them to be prudent this, the Federal budget should be
14,020 banks, 2,939 branches, and bankers have a great responsi¬ with respect to their borrowing
showing a surplus. Over the com¬
181 members in foreign countries.
bility.
I have an abiding faith and spending.
ing year, numerous proposals will
During the past year, the As¬ that they will discharge that re¬
"Large changes in business in¬ doubtless be made for slashing
sociation's membership increased
sponsibility
with
wisdom
and ventories have frequently accen¬ taxes and increasing government
by 119 banks and branches. In¬ with credit to American banking,
tuated
the
fluctuations
in
our
spending.
In the interest of all
cluded are over 98%
of all the and to our country."
the people, pressures which would
economy. This is something which
banks in the United

©f

period " of high

~

inventory

self-restraint

a

nomic activity should be resisted.
"These are five-areas fhat par¬

a

disruptive

41

which

INDUSTRY

AND

trouble

might develop:
(2) in business in¬

(1) in credit;
ventories; (3) in wages; '(4) in
the stock market; and (5) in Fed¬
eral
fiscal policies.
Excesses in
any
of these areas could have
serious consequences for the en¬

KENNAMETAL
.

..

(Po/CtimA 4TV (PmxjaqM

(§2

The Commercial and Financial Chronicle

(1430)

Continued

from

omy

the

that

expect
will

We

economic

our

all

at

times

be

the collateral value

By

exercising caution
during prosperous periods, how¬
ever,
we
can
greatly moderate
the swings in our economy.
"The

time

fore, is
on."

for

from

"We

Philip

with

faced

are

of

new

Instalment
of

the

easier.

Chairman

Credit

wrong with

picture

there

last

is

Con¬

careful

efforts

will

year.

is

consumer

of

lusions

Mr. Wooll¬

under

not

to

as

and
transactions

overburden

the

ship.

another

periodic bulletins, "Timely
Instalment

on

inform

bankers

field

Credit,"

Oscar

Division; and

President

Mennenga,

Presi¬

Chapman,

P.

Trust

of

State

the

I Association Section.
Gibbs

Earle

Lyons

A.

Welch

Where

would

individual

the

with
re-

'

gardless of the terms involved.
"The
inability
to
determine
true selling prices of new auto¬

to

lenders

in

and

about

Richard

the

owner¬

debt, they should be declined

Notes

R.

of

il¬

false

equity

cott, President of The Bank of
Asheville, Asheville, N. C., stated:
issued

dent

be

before.

ever

The

Commission

Bolton, President of the State Bank

Division;

Therefore, this
is the time to adjust our credit
sights to make certain that the

self-re¬

selection

H.

fantastic as they were
The 'blitz' sales tech¬

as

than

nothing

reasonable

and

risks will not remedy.

its

Savings and Mortgage Division; Robert

will again be in evidence,
perhaps
in
greater
proportion

the instalment credit

that

straint

of

sion; Earle A. Welch, President of the

at

cars

nique

Bankers

Association, reported to the
that

fully

of

Commis¬

American

Promotion

Presi¬

Lyons is newly elected

dent of the ABA's National Bank Divi¬

the

at

expand terms and to make credit

Reports

Woollcott,

vention

.

we

inventory

model

a

record levels. This does not prom¬
ise an easing of the pressures to
sion

the

Gibbs

entering
period, and

now

time

same

dealer

now

'

sion

are

changeover

The ABA Instalment Commis¬

-

NEW ABA OFFICIALS

is of primary

importance.

vigilance, there¬

now—now, and

Thursday, October 6, 1955

.

Heads of ABA Divisions and Stale Association Section

fact, new-car terms appear to be
settling down to around one-third
down-payment and 30 months to
pay.
But true equity related to

econ¬

ahead.

years

progress
smooth.

American

the

of

over

cannot

.

41

page

ABA Holds 81st Convention
promise

.

mobiles

developments

has

considerable

created

affecting the soundness of this doubt as to the real equities in
contracts purchased. Any attempt
phase of lending.
"Under existing business con-> to establish correct retail prices
that could
be
used
as
a
ditions, easy credit
and
more
guide

<

extended

terms

have

apprehension

some

ernmental

would

created

among

futile

be

these

cases

gov¬

in

because

figures

most

Robert.

Richard

H.

P.

Chapman

Bolton

Oscar

R.

Mennenga

unavail¬

are

able.

and

banking authori¬
"In an attempt to arrive at true
ties," the Commission., said."The
battle against inflation
being equities, the practice of the more
waged by the Federal Reserve' experienced bank instalment loan
Board has been moving from an operators and many of the finance
easy money policy toward a more companies is to adhere strictly to
...

restrictive
effort

money
policy.
This
avoid further inflation

to

deserves -the

support

bankers, but it creates

of

all

dilemma

a

for

of

advances

dealer's
The

the

85

costs

to

95%

factory invoice
stable

one

of

the

factory invoice,

or

to

seems

item

in

this

be

con-

To preserve that

in

place

mortgage credit.

above

integrity

and

of

poses

dignity we must
things the
high moral pur-

material

the

individual

and

the

nation that

inspired our founding
Only in this way shall

fathers.
be

we

able

fulfill

to

our

respon-

the

the

of

fused and chaotic price structure,
When wholesale floor planning is

sibility of leadership, and impart
meaning to the word 'freedom'

equities

a

involved, this does not present

that the rest of the world

the

finances

problem for the lending bank, inasmuch as prices can be checked

hand, and exercising re¬
straint on the other hand; and
they are trying to maintain con¬
one

easily with invoices.

fidence in themselves and in their

borrowing public, yet at the same
time
warning against excesses.
This

is

no

"Credit

should

and

terms

intelligently

deter¬

after

considering all the
involved.
In
evaluating

factors
the

borrower's

purchaser's

or

standard of

acceptability, the em¬
phasis should be on the following
five broad characteristics:

"(1) Character

"A

continued

ment credit

level.

credit

—

of

characteristic—pur¬
pose; terms and collaterial, if any.
"Lending
policies
should
be
geared to the ability and willing¬
the

borrower

to

and

pay

making certain that true equity
merchandise

any

chased.

There

tighten

credit

is

pur¬

need

no

to

to

good risks.
It
is almost impossible at this time
hold

to

the

extension

ment credit to

Therefore,

of

instal¬

rigid set of terms.

a

controlled

to

appears

to

be

the

flexibility
sound
policy

follow, and relaxation of terms

to

meet

unsound

competition
guarded against.
"During the past six months or
so, the trend has been to 'stretch'
should

out

be

the

terms

nancing

on

on

new

maturities
the

automobile
While

cars.

may

fi¬

long

of

basis

be

direct

to

justified

bank

automobile

loans, such selectivity is
ways

possible when

eration

is

new-car

1

depend

on

al¬

dealer

a

extended

op¬

maturities

financing is

problematical.
next year

not

involved.

"Whether
on

on

carefully selected
particularly with re¬

purchasers,
spect

and

sound

This

the
or

sound

factor

is

will

experience in the

so.

credit

personal

the

to

peoples maintain

their

finances

basis.'

on

Credit

and

resilience of

affirms

supported by
deficits.
"In such

vigor
private enIt is not being

large scale Federal
V

them

purchases

and

maintain

to

credit

and

a

which

reactions

lead

later

to

inevitable

There

on.

"Debt

on

has

broad

The

tinued

their

operations in

con-

minimized interference with

mon-

the economy,
commendable

effects on
time,

the

same

has been made
improving the structure

toward
of the

progress

Federal

debt.

Treasury

theye is evidence that

We

that

trust

the

mit.

accifmulation
is

is

inventory
taking place. It

important that these influences
not

produce

rise

a

in

..

At

held

.

«

its
on

As

a




matter

of

Adopted
JI
\

Second-General

Sept

■'

prices,

r,

.

Session

28, the Convention

adopted the following resolutions:
"International

their

our

Situation:

We

nation's leaders for

unrelenting

efforts

to

-.wages. n0t b?uSed °n

°r

find

ductivity

gains, with a possible
resumption
of
the
wage
price
spirals which reduced the purchasing power of the dollar after
the recent

will

continue

in this direction

as

peaceful solutions to international

System

fitrate

for appeasement or for relaxation
of our defense effort.
The eqs-

has

the

effective

continued

flexibility
monetary,

to

demon-

essential

to

management

and, has been adjusted promptly
ing of international tension re- to changing conditions. It propsuiting from the Geneva meeting erly seeks to restrain credit exIS welcome, provided
we are not Besses
whieh
could
impair
the
misled

into

thinking

Communists

have

that

the

abandoned

their objective of world conquest.
World should not for a

The Free
moment

let

in

Geneva

men

in

guard.

peace,

technology

The

Energy Conference

demonstrated
learn

can

its

down

recent Atomic

to

modern
can

live

how, if
together

science

open

up

-

and

vast

stores of untapped knowledge for
the enrichment of all mankind.

stability and sound growth of .our
"Flexible monetary actions,
while unpopular at times, are in
the interest of all people and de-

public support. We endorse
and supnort the monetary policies of the Federal Reserve Sysserve

tem

and

appreciate that this ability would

rassing

the

have

reached

fruition

had

nation not been founded upon

principle

pression

to

of

the

giving

dignity

full

of

believe they

are

consumers.

"Instalment and Home MortCredit:
A continuing flow

gage

therefore, must continue to
play a constructive role in helping farmers to make the necesture,

adjustments.. We

sary

a

an

to

move

conditions per-

about vine

toward

our

of

envy

the world

farmers

over.

Over the years ahead

"Savings:
we

foresee

can

f0r

growing demand
to finance out-

a

capital funds

lays for plant and equipment, new
our

ership,
come

public

and

homes,
Under

construction,

system of private own-

these

from

capital funds must
the savings of the peo-

that

has

been

made

reducing government

ex-

«A

ma;or

sibiYity

of

f,mPtioo

encouragement

eral

We urge that the
continue
to
push

budget.

government

vigorously in this direction without weakening
our
national se-

At

time like this, when
booming and infla-

a

businesses

tionary

dangers

should
the

ance

surplus

be

present,

are

not

our

a

ts

r

this

by

r

Reor^aniza-

on

questions

Feberai

ancj

ma(je

^e

it

and

helo

for

economic

serve

as

people's

cafe

to

assemble

the

growth,
and can
depositories for the

Savings
R

Q

in

our

^wo

a

„ac.

Th„

m..,...,rv

^avmgs *>onas. -me ireasury

The

the

size

government

deca(jQS

has

to

us

re

operations, organiza-

policies of tne

govern-

£|riodw°£p^dge our^ontinued
we PieQ8e oui cummutu

comes-

energetlc suPP°rt *or tms Pl0~
gram.

of

imperative for

examine the
tions

of

jas^

the

capitai funds that will be needed

to

increase

activities

over

relating

onerations

and

Government.

tremendous

By

thrift

:,ularly ^ort^nt today because it
1S essanjial to Prom°te thrift in

tion of the government raise many
functions

banks

ahead.

vears

nromote

bavinS® Bonds program is partic-

the

issued

Commission

important

This

iose none of its im-

the
to

can

the

be

thrift

Reorganization-

"r,ovemmpnt

thp

of"

r^soon-

Federal

reduce

debt.

The

in

continuing

merely to bal-

budget but to achieve
and

DOrtance

and

should

banks

Penditur?3 and balancing the Fed- function° wiU

thp

con-

of

growing domestic market and
improving technology that is

the

"We recommend the substantial
progress

aim

are

f uture

"Appreciation:

The

American

Bankers Association has been fcrtura?e this year in having as its
p^es^den^' Homer J. Livingston,
broad knowledge of banking
and understanding of economic

£orc,es ar® recognized not only by
bankers but also by leaders of

m-

"the dus*ry and government. We are
light of changed conditions and deeP*y appreciative of his devothe appropriate roles of governtion 011 behalf of banking,
menf

fr0m

ment

and

time

to

private

time

in

business.

The

To the other officers, the members who have served during the

of instalment and home mortgage

reports of the Commission should

lending

be evaluated, therefore, in an objective and nonpartisan spirit.
"

y.ear on the Councils, Commissions, and Committees, and to the
sta^' we extend our thanks for

undergoing

{-heir loyalty and zeal in carrying °n the activities °£ the Ass°"
ciatlon-

is

essential

to

strong
We should recognize,
however, that when credit terms
a

economy.

become

lenders

the

too

to

liberal,

troublesome
to

both

and

they
and

borrowers

injure the

may

embarand

health

of

economy.

"Bankers

exman.

not

agriculture, and

prove

never

do

the
restricting
availability
of
credit for the needs of business,

"World Leadership: History has
taught,,that a nation is only as
strong as its moral fiber. America
today finds herself in a position
of world leadership. An unprecedented ability to create material
things
has contributed
to
that
leadership.
Moreover, we must

our

'

economy.

Banks serving agricul-

squeeze."

pie.

curit.y.

"The policy of the Board of
Governors of the Federal Reserve

problems while resisting

pressure

V

war.

"Many, segments of agriculture
confronted with a "cost-price

are

etary policy and has avoided unAt

vital

this

Fiscal

that has

manner

a

of

strength

agriculture, because that future
rests upon the solid foundation of

financing

its

the

fident

has

Treasury

handle

to

expansion in credit
of all types in the past
years, and
a

serve :

part of our economy,

sound

a

and

Management

Policy:

settling

period, we should be
prevent inflationary-ex-

to

been

the

our

terprise economy.

cesses

Condi-

present record-break-

prosperity

do

-

Resolutions

commend

Loan

in

to

are

The

and

ing

alert

their

in

enable

—

dependents.

exists

Our major re-

bankers

as

instalment

that

end

idence; marital status; number of

to

all

un-

and sensible basis.

"Business

instalment

advise and to guide our customers
and our communities in the sound

credit

stability of
employment; earning capacity.
"(3) Financial — ability
and
willingness to pay.
"(4) Personal—stability of res¬

time,

same

extend

excessively liberal terms

on

sponsibilities

use

evaluation

to

should be resisted.

a

of

sound, construe-

a

the

At

pressures

good moral risk is of primary im¬

ness

instal-

tive, and sensible basis will help
our economy on a
high

portance.
"(2) Vocational

"(5)

on

of

can

derstand.

tions:

flow

maintain

policies

be

mined

task.

easy

a

be

at

quality

lenders. They are supporting
high rate of business activity,
employment, and production on
a

and

They should

all times with the
loans which they
make, and should lend only on
such terms as will provide individual borrowers with proper
concerned

-

instalment

of

use

counsel

have
with

"Agriculture:

responsibility

their

customers

Agriculture

reflict readjustments

basic

forces

mand for the
are

of

supply

output of
aware

of

is

changes

which

Bankers
a

*

fundamental

of the

and

de-

our

farms.

this

situa-

tion and fully appreciate their

sponsibility

for

helping

to

re-

pre-

"The

banks of this great city
Chicago have made our visit
most enjoyable.
No detail as to

of

organization

and

entertainment

Volume

182

Number 5470

.

.

The Commercial and Financial Chronicle

.

43

(1431)
has been overlooked.
we

express
tion.

'To

all

Defense

1941-42;

hotels, the
who

and

press,

have

contributed

of this

success

extend

we

hosts

our

Loans

the

others

to the

To

sincere apprecia-

our

Convention,

thanks."

our

Business

from

Credit
1950

Division

The

four

officers

Presidents

elected

divisions

for

the

and

1951

As-

1950,

Credit

Administrative

Bankers Association follow:

1947-48, and

PrecHent-

"

dent

Gihhc

Tvnns

q^mfnrd

First

lord,

NaBnnnl

uonn.

Company

A

Welch

Treasurer of the Meredith Village

Savings Bank, Meredith, N. H.

on

of

Boston,

Boston,

'

Mass.

'

State Bank Division

President:

Executive

Robert

H.

:

Bolton,

Vice-President

of

the

Rapices Bank & Trust Co., Alex¬
andria, Va.
State

Association

President:
Executive
Bankers

Oscar

is

Texas

Lone

Star

San

Fran¬

cisco, Calif.
Dr.

Stonier Made

Dean

nrior
prior

it

Harold

the aba
tne ABA

to
to

Stonier,

Graduate

Convenconven

that

announced

was

of

of

and

of The
Banking of

of

the
Administrative
by
the
Administrative
Committee of tne Association. Dr.
hv

R Sherman Adams, Assistant Director
of
the
School
was
advanced to the post of Director.
Stonier will

As

eontinne

of

T'reas-

Southwestern

St.

Medi-

Chairman

Paul

Legion

son

ber

Cocke
and

In the Illinois Bankers Associa-

tion, Mr. Boyles served

a

is

married

daughter.

and

has

He makes

dent in

Executive

of

as

officer

exermtve
S
R
e*ecuLve officer nf the C
of the G. S. B.

Officers

was

member

a

Council

from

of

the

United

the

States

Council

of

Chamber

member

of

the

of

Salvation Army;

National

nsti-

tee in 1951_52 and

was Chairman
of
the
Committee
on
Federal
Legislation from 1952 to 1955.

Boyles entered banking in

1907 with the First National Bank

Outside

of

the

banking

busi-

jng

House

Association;

and

in

and

1930

he

became

Madison

Kedzie

President
Trust

&

Director

a

of

Webster-Chi-

cago Corporation.

of the

two children.

Savings

He makes his home

in Los Angeles

continent

thp

on

Mld-Gontinent

of

?un

r*h

'

Cq<J ^
Gas AssO-

&

Oil &

ciation; Dalla

Community Chest-

P-anj

At the 1956 meeting of the

„

Foster-Mann Opens
Inc.

Foster-Mann,

formed

with

has

offices

been

40

at

A

o<

Officers

Victor Foster, Presi-

are

Herbert

Mann,

R.

Vice-

President; William Bennett, TreasMr.

urer.

Foster

Graham,

Mann

was

was

Ross

with

formerly

&

Co.

Merrill

From Annual

&e0',9Ca'oV"13

f\oO°d: c,0u^'

Pierce, Fenner & Beane and Bache
Co.

Florida

Report Year Ended June 25, 1955

camn
of

America

tJ

Circle

t

r>

.America, Circle Ten Council;
and the Pllot Insdtute for Deaf.

6/25/55

CO**'%

SALES

o.

of

one

6/26/54
$228,045,301

12.12%

Laws.

Florence
and

son

•

.

% Increase

June>
1955^
Westminister
College at Fulton, Mo., conferred
on
him an
honorary degree of
Mr.

#.

.

$260,813,772

14.37%

•

is

EARNINGS

married,
daughter,

one

BEFORE

INCOME

TAXES

$ 10,435,337

has
and

makes his home in Dallas.

per

common

ERLE

$

$2.28

share

8,601,780

$2.04

4.00%

3.77%

COCKE

President

Vice-President

Fred

F. Florence, President of
,
Republic National Bank of
_

,

the

Dallas,
in

,.

-r

Dallas,

New

with

a.

t,

,

Texas, was born
City, but moved

York

his

parents
irfancv
miancy.

m
in

.

to

ABA,

of

Rusk.

He

rose

was

and

is

of
born in Lee County
graduate of the

After

ona*****

number

of

Dawson,
as

Mr.

of

Texas.
that

a

few

months

institution, and

riod
B

After

k,

Ratcliff,

pe-

First State

Texas,

Vice-President

came

short

a

Cashier of the

as

a n

with

he

of

the

beAlto

?tami?a£k' Alt0'Tff' in I912;
eIecteAPre^de?j
of that institution. During World
War

I, he served in the Aviation
cf the U. S Army, and re-

Corps

'u,;ned °
Alto State
the

as

Bank, and

" 0

Mayor of

as

In

1920,

Mr.

Florence

became

of the

Bank and Trust Company,
Dallas, the forerunner of the ReNational

Bank.

He

was

elected

President of the Republic
Nationa. Bank in 1929.
,

Mr.
dent

Florence
the

cf

the

sociation

in

served

Texas

as

Presi-

Bankers

1936, and

As-

Presi-

Macon

of

in

was

the

Atlanta

Reconstruction

DIVIDENDS

Secretary-

per

agencies

Finance

in

194S. -SKa

ecutive

^vice-Chairman

Committee,
Officer

Association
dent

of

House

lation, Mr. Florence

was

ber of the Committee
Studies

from

Subccmmittee

Cpmmittee

on

from

to

1837

1934
on

on

to

a

mem-

Banking

1937;

the

Taxation of the

Federal Legislation

1941;

the

National




(present
$ .44

$ .60

72c)

EQUITY

.

.

•

•

t

$ 22,453,014

$

$ 18,527,683

$ 17,740,352

18,794.016

NET

and

in

WORKING

CAPITAL

.

.

of

$2.97

$3.37

222

202

10

ratio current assets to current debt

10

Chief

November,
UNITS

IN

OPERATION

.

.

.

♦

t

is

Past

a

Atlantic

Association.

retail stores

Presi-

wholesale

Clearing

In the Ameri-

S

State
the

Trust

Division

member

Since June 25.

1943-44

of

of the Credit Pol-

of 49

in

a

in

member

1945-46.
of

the

He

elected to a three-year term on
the Association's Executive Council in 1952Outside
Cocke

of

the

banking

is'a'Director

field,
of

the

retail

food

into

Lovett has acquired all of the operating assets

1955 Winn &

Stores
stores

Ballentine

and

located

in

South

Grocery Stores consisting principally
Carolina. In addition, the Company

agreement with Dixie-Home Stores under which it is contem¬
plated that, subject to approval by the stockholders of both companies at meetings
held in the latter part of October 1955, the operations of Dixie-Home Stores will
merged with Winn & Lovett. Dixie-Home now operates 117 retail supermarkets in North
to

be

Food

Edens

has entered

Gov-

Borrowing
Committee
1946
and VGeorgia
State
Chairman of the -Federal Legis¬
lative Council since 1952. He was

Mr.

units

■

Association, he was
Vice-President for Georgia

since

City Bankers,

1,815,136

Bankers

can

of

and

the

of

Reserve

share

common

He has se„ed|on various com.
of the/Georgia Bankers

been

the American Bankers Asso-

$

2,704,296

mittees

has

In

common

STOCKHOLDERS'

ernment

ciation

$

•

1954.

past Director of the Asso-

a

•

•

.....

of

Chairman of the Ex-

He is

Clearing

PAID

Cor-

lm
He
became Executive
Vice-President in 1942; President

House Association for three terms,

Dallas

1.69%

in

Commission

the

3,851,780

$ .91

He joined The Fulton National
Bank, Atlanta, as Vice-President

icy

cf

$

1.96%

annual rate

poration, and allied operations

a

dent

5,128,337

$1.12

1927-28

and

and

was

$

#

•

and

served

poration, Commodity Credit Cor-

Guar-

anty

pubhc

head

•

share

a

Board

Executive

first Vice-President

he

common

% to sales

•

Executive Officer
of Regents of the
University System of Georgia and
the

*; the Board,

city.

i

Cocke

Senator

Exchange

Treasurer

in

yeats

Ga.,

State

a

Subsequently

Dallas,

per

banking,

in

manufacturing, and farming for

to Assistant Cashier of that bank,
and in 1911 joined the American

National Bank,

u

engaging

♦

EARNINGS AFTER TAXES

NET

a

University of Georgia.

/

Mr. Florence entered the bank-

Bank

Erle Cocke, Vice-President

Ga.,

Rask, Texas,

ing business in 1907 with the First
National

,

the

an

be

Carolina, South Carolina and Georgia.

FASTEST
f<:<■'

FOOD

GROWING
"'/'/v

'

//•?

,,

-

-

...

CHAIN
-

Mr.

Lynch,

COMPARATIVE RESULTS AT A GLANCE

<eU

Ex-

change Place, New York City, to
engage in the securities business.

0v)*
OP«:»

na-

be hosts to the Convention,

Jacksonville,

c\0?-tS

in

bankers, the Los Angeles
Clearing House Association will

■n?na? wE Association;

FLORENCE

F.

was

AND SUBSIDIARIES

for' In-*'
a.u" _fyA- L.n

be

tion's

% to sales

FRED

will

1956.

1932-

&

in Oak Park, 111.

Convention

be

The

The last Convention of the ABA

with

Mr- B°yles is married and has

will

Calif.

WINN & LOVETT GROCERY CO.

t0iJ°f

■l,aliac

Inc.;

Association

Angeles,

the

21-24,

of Chicago. In 1912 he became an ness, Mr. Boyles is President of dent;

Foundation

nirertnr^nf

Mid

for

dates

Oct.

He was a member of the Association's Administrative Commit-

Uni-

Los

and life-

3 °irect°r
Dast

in

Ad¬

Rallas County Chairman

the

Bankers

Committee in 1950, 1951 and 1952.

School of

Northwestern

ican
held

to

was

Los

elected President announced that
the 1956 Convention of the Amer¬

the

1943

in

Calif.

and

Board of Trustees

International

Doctor

Bankeis Association follow:

Presi-

Convention

Angeles,

^
the

Commerce;

Thumbnail sketches

of the new
ranking officers of the American

and

State Vice-President for Illinois
in .1945; member of the Treasury
Savings Bonds Committee from
1946 to 1952; and member and
Chairman
of
the
Nominating

In

Backgrounds of New ABA Top

Vice-

1946 and again in 1951-52. He

George R. Boyles,
the ABA
Treasurer, is Chairman of the
Board and president of the Merchants Nati0nal Bank in Chicago,
Chicago, 111., is a native of that
attended

1942-43

num-

as

1943-44.

ciation, he

Treasurer

and

in

on a

and

In the American Bankers Asso¬

GEORGE R. BOYLES

rnmmprpfl

committees

President

his home in Atlanta,

city

of

Next

Hospital Ad-

Director

School

Dr

Trustee

the

of

the

Dr.

American Bankers Associa;tion, had been named Dean of the

Dean

Committee

Foundation;

the

Schnnl
bcnooi

Executive

University;
urer

cal

of

Banking
Tust
Just

Vice-Corn-*

American

1922-23.
Mr.

a

the

visory Board of the Dallas Branch

of ABA Graduate School of

tion,

the

of

the

Harold

in

of

Jr® 7®xas-f ^?sea£,c^ Fo.undationi 1928, Executive Vice-President of
^ittee31 of Sotithen^ MethOdM1^^^^^1^ View State Bank- In

California-iSEi
member of

Manager,

mander

Association,

1934 President and

Trustee, Treasurer, and member Examiner for the Chicago Clear- Palisades Park Properties,

Mennenga,

Association,

National

was

and

Director and Treasurer

a

Trustee

Section

R.

Forestry

He

LlSht Con?papy, Dallas Railway jersity and the American
arY? Terminal Oil
Company, Chick- tute of Banking.
asha
Cotton
He

Bank

American

in

PresWenfof^The3Me^chanls'n'"- °f""the- "state""Fafr'"of''"TexaV;
tional

Chairman of the Board of the
Merchants National Bank of Chicago, the position he now holds.

Railway ComBureau, the
Hotel,
and
the

Grady

Association Vice-

1954-55.

of

Barik, and in

Henry

the

Company,
the Austin Bridge
Company.

Trust Division

•

term

to

^teel Company, Wyatt Metal and
Works, Dallas Power &

'

Earle

1947

number of firms, including Missouri-Kansas-Texas Railroad

Savings and Mortgage Division
President:

ABA's

from

™

y'

Conn

the

on

Central of Georgia

pany, Atlanta Freight

a

the. banking business,
J101"6?0?. ls a. Dl^or in a

Prpsi

Bank
ford

served

Committee

as

in

Chairman

He

Council

President

Commis-

1950; and the
Commission from

one-year

a

1942-43; the

1954.

sociation Section of the American

War

to

term

Executive

in

National

being

to

three-year

the

State

1944

Policy
1954,

to

from

New

Committee

the

Committeein

Small
sion

Loans

and

IN

THE

SOUTH
'

'

44

The Commercial and Financial Chronicle

(1432)

Continued

awaiting such

from page 3

doubtedly

event,

an

some un¬

their

lowered

sights

during the sharp reaction, hoping
to

Is The Bull Market Over?
the normal fluctua¬
tions of wage and other costs on
the one hand and consumer prices

Years

ago,

the

on

other,

mainly

were

re¬

sponsible for periodic economic
readjustments.
But with labor's
new
leading role today, it seems
that the only way to readjust ef¬

inflation,

This
which,

dollar's

falling

fectively is to raise prices.
suggests

more

reflecting

the

-r

value, has prompted the bulls to
buy common stocks as a hedge.
Next year, we must not forget, is
an
election
year
and
political
promises will be made by both
parties to all segments of our
economy, including farmers, labor
unions,
our
allies, the defense
group
aad many other factions.
In addition, if the Democrats hap¬
win the election next year,
the prospects for more inflation
•would certainly be heightened.
pen to

Today's
The

in

bulls

believe

also

are

we

business uptrend.
The
see-saw
action
of
higher
prices with lower yields, followed
by increased dividends and then
higher yields will continue, so
they claim. This will sustain the
long-term

a

bull

market

years

to come, while earnings also

several

for

more

are
carrying higher. In order to
emphasize further the virility of

their

six-year progeny, the bulls
oifer these additional points:
(1)

Market

sponsorship has
been
A-l, with the institutions
still
heavily invested in quality
issues.

Most of the purchases have

(2)
been

Securities

for cash.

chased

have

been

so

"locked

pur¬

up"—

withdrawn from circulation.
has

This

the available supply
thin markets in a num¬
the higher priced issues.

reduced

causing
ber

of

The

great

thin

of

momentum

September

decline

markets

the

in

the
from

resulted

leading

stocks.

(3)
to

Investors

take

This

still reluctant

are

profits

for

tax

stock

"off

the

market"

reduced

ply.

This

able

in

was

the

floating sup¬
also quite notice¬

anced

setback.

severe

Tax reduction in

1956, with

seems

Estimated

earnings

for

1955

averages

are

approximately

a

share,

with

the

on

dividend

above

the

is

$20.

elec¬

and

status

new

convertible

food

industry when wood
into
food; when
fruit,
flowers,
vegetables
and
meat can be kept fresh indefinite¬
ly by radiation. Also, what will
the
harnessing of solar energy
to

mean

industry,

heavals will

what

and

up¬

Dow

$38

payouts

Jobs

personal incomes have hit

and
new

a

capacity
achieved

The

These

modernization

and

since

the

Bearish

war.

While

investor

confidence

was
badly shaken by the recent
startling news, uncertainty cen¬

tered

look

on
the political out¬
1956, than around busi¬

more

for

ness

prospects.
Eisenhower

Mr.

election

seem

and

now

the

over

chances

running

pretty
continue
few

next

months.

decide

health

re¬

right
a

Argument

Meanwhile the bears ar¬
that stocks are high now, but
wait until the 2-year old business
boom
subsides.
Presumably the
gue

backbone

the

of

and

no

and

his

else

one

confidence.

regulated

Eis¬

administration,
inspire such

can

Any

further
be

boom

effectively

tighter

by

has

President

will

momentum

rise

market

confidence in

been

money,

pos¬

sibly higher margins and less lib¬
loan

home

eral

mortgage

rediscount

The

has

rate

terms.

already

been increased in successive
to

20-year peak.

a

mit that extreme
in

election

an

strictive

just

can

jumps

The bears ad¬
will be used

care

that

and

year,

instituted

measures

re¬

so

far

easily be reversed, if

as

However, history shows

necessary.

that

tight money has preceded
major setbacks
in
the
market
more

often than not and, although

such

action

six months

be

may

or

regard

it

as

the bears

only
"handwriting

more

wall."

the

They

that there will be

for

delayed

following this

more,

tightening policy,
on

also

believe

continued de¬

a

cline in automobile production and

that

current

the

building

boom
has reached the upper limits of its
present potential expansion. They
also point to a decline in farm
boom.
not

am

economist, but

an

any¬

who is

engaged in the work
forecasting must en¬
deavor, through constant reading,
to keep abreast of current busi¬
one

of

market

ness

and all

news

phases of inter¬
affairs, as they may affect
the gyrations in the market place.
is

considerable

that

doubt

the economy can maintain present
levels without benefit of continued

heavy

defense

spending. In this
the
more
friendly

connection,
Russian

prevalent

attitude

should

the

to

for

run

other reasons, the news
should be out before
long, in time
for

or

<-(the

ranks

GOP

and

to

rearrange

its

strategy.

In

election

other words, it is more bullish to
have
a
withdrawal

late, if
all.

one

early, than
is to be announced at

Moreover,

the

ministration
anxious than
r

will
ever

for

a

economic climate next
ther

substantiating

view

are

range

(1)

these

Ad¬

present

now

be

more

favorable

year.

the

Fur¬

bullish

optimistic

longer

factors:

that

suggests

months

a

gains:

two

every

city the size of Roches¬

ter is added to the
population.

(2) A

15%

electrical
and

the

further

civilian

(3)

to

16%

consumption

excellent

taming

of

for

prospects

the

in

1955

for

atom

a

for

uses.

example,

the wonders to




be

de¬

many

finding

that

Contented

The

Long Term

Straddling
bulls

fence between
is the apparently

the

bears

and

tax

this year for
until the
of the Presi¬

profits

paper

Moreover,

reasons.

recent, sudden news

dent's illness, he has not been
to

point

to

good

any

able
to

reason

favorable
business
projected for the fall
months, and higher dividends and
with

sell,

extras

on

continued

number of stocks like¬

a

ly to be declared. Yet, admittedly,
this

is

definitely
the

for

sion

stocks.

time of deci¬

a

investor

in

common

Perhaps this might be de¬

scribed

best

as

and

"betwixt

a

between"

period for the investor.
is the stock market the
Undervalued segment of the econ¬
No longer

it

omy

two

was

comparable

No
bargains

ago.

years

values

or

exist, but there is still nothing real
or tangible on the business horizon
induce

to

long-term

Since

the

with

sell.

such

faced

best

investors
is

investor

policy would

to

thus

condition,

a

the

seem to be to
invested, keep¬

remain rather fully

ing
some
cash
reserve,
while
maintaining an alert attitude in
the hope of uncovering as many
and

new

situations in

promising

different

fields

forgetting,

where

selling

terms

in

possible,

as

and

market

the

of

the

is

various

averages.

other

In

words

dividual
reason

to

where

(bullishness

is

handpicked in¬

on

issues,

and

there

is

no

abandon

long positions,
switch from one

a

issue into another appears

tageous.
leading

The

action

advan¬
the mis¬

of

and the fact that

averages

they have been selling at histori¬
cally high levels should be com¬

pletely disregarded.
after examining some of
the economic, market and business
factors, we come to the most dif¬
Now,

ficult

and

baffling

job

of

the

forecaster. Before embarking upon

this, I should like to mention
tool that I have found
valuable

the

over

immensely
in fore¬

years

It is

generally conceded by stu¬

upon

the increasing swing toward

such

fundamental

statistics

nationalization by minorities, with
no
solution
presently apparent,

earnings and dividends, while
the remaining 25% is based upon
public psychology toward the se¬

has

curities

among

pessimism

the

the bears.

While

the

future

is

difficult

to

accurately, some
taking comfort in

gauge or measure

bears

also

are

the historical

as

pattern of the

mar¬

in

markets

particular

sideration.

general,

stock

and

under

con¬

I prefer to discuss and

write

about

the

when

public

psychology

favorable,

stock

rather

than

market

is

un¬

when

the

optimism is somewhat shaken, but
as strong as it is
today. I

ket, which indicates that January,
February and March are often pe¬

is still

riods

have

of

decline.

Dow-J ones

Since

1900,

industrials

the

have

reached their annual low 25 times

during

these

months,

compared
with only 16 yearly highs achieved
during the first quarter.
While seeking a solution to cur¬
rent

problems, investors also are
asking themselves this question:
"Higher or lower for the immedi¬

ate

market?"

I

would

do.

would

go

buy

attitude

recently asked
said

further

hoped it
down, so he

some stock.

of

countless

This is the

individuals

today, and it is hoped that at least
some

of

were

the

able to take

numerous

off.

Although

the

sidelines

advantage

attractive

bar¬

during the last sell
many have been on
for

a

long

time

or

Actually,

a

pattern plotted
the

on a

paper,

judgment

and

price
which

willing

of

willing

sellers of a
single stock trans¬
action escapes the vigilance of the
ticker tape, and these total daily
judgments do tell a story of the
security.

No

trend

difficult
lies

in

each

of

part
its

of

stock.

that

concede

the

reading

most

correct

interpretation,
and in this respect it is highly
important to correlate the study
of

charts with

statistics.

you

in

fundamental

though

these various factors

deduction,

reduce to

some

er¬

as you can never

mathematical formula

a

anything

do

you

bound to make

are

rors

basic

Even

correlate all

ceed 10 to 12%.

variable as the buying
of securities motivated
by
different
human
emotions,
especially
when sudden,
unex¬
so

and selling

pected, unfavorable news devel¬
ops.
It is mainly the teamwork

controls
in

eral

lysts

public, while security
generally have been

bullish.

expect
than

The

latter

the market

group

to

sell

gen¬
ana¬
more

usually

higher

business justifies.

profits and
increased /divi¬

cases,

Louis

(50); St. Louis San Fran¬
(30); Northern Pacific (69);
Pacific (32); Gulf Mo¬
bile & Ohio (38); and Baltimore

cisco

Canadian

Ohio

&

(47).

Retail

Trade:

income

this

Total

is

year

disposable

expected

be about 5% greater than in

Retail
1955

for

sales

the

first

than

more

were

like

the

7%

to

1954.

half

of

above

total, and al¬
though the current quarter's gain
ago

year

be quite so large, final
results
should
benefit

not

may

quarter

substantially from Christmas buy¬
ing. The profit margins of gen¬
merchandisers

eral

have

im¬

proved,
arresting
higher
costs.
Most department store chains have
been
expanding,
which
augurs
well for future sales.

The outlook

the

between

chartist, now gen¬ for the group is still very promis¬
erally known as a technician, and ing. Favor: Associated
Dry Goods
the security analyst, especially in
(33);
Allied Stores
(59); Fed¬
periods like the present, that re¬ erated (72);
May
(39); Gimbel

sults in
casts

the

most successful

fore¬

and, of course, the most re¬

warding profits.*
I

have

found

(10) has speculative appeal. Mont¬
in

the

past

that

managers

investment

most

(25); and City Stores (22) for still
higher
prices.
Crowley-Milner

are

Ward (87) also indicates
higher price and should be held.

gomery
a

increasingly interested in referring
to technical data.

Many maintain
elaborate
technical
studies,
but
few admit using them.
They do
not always agree with the find¬
ings of the technician and many
times they are right and the tech¬
nician is wrong. We should try to
all

use

the

materials

at

dis¬

our

posal in arriving at predictions on
the market, and I can assure you
that the buy and sell signals that
sometimes indicated from

study

charts

of

worth

taking
following.

often

are

into

the

well

account

and

Oil:

Wider

record
tion

light

this

possible

a

crude

oil

who

is

there today, who can predict with

certainty

the

Dow-Jones
490

J.

D.

'

final

level

marked

the best

selective

way

the current
sults

should
A

very

so

im¬

ies

higher

that

attitude
war¬

seems

international

From

opera¬

price point of view

a

els:

area.

to

down

get

of

stocks and
issues within

look

interesting

Richfield Oil (73); Atlantic
Refining (37); Union Oil of Cal¬

(49); Shamrock Oil

(37);

Royal Dutch (79);
Anderson Prichard (48); Shell Oil
(59);

(54);

and

Sunray

Mid-Continent

(23).

prices.

Aircraft:

Individual

group

following indicate higher lev¬

the

individual

group

prices

picture. Full-year re¬
be materially above

well-balanced

having

tions.

ifornia

for

contra-

companies, which are strong demestically, and on the domestic
producing and integrated compan¬

Sinclair

each

the

gasoline

well-rounded

individual

present

in

constructive

the

to cases, and discuss the action of
groups

further

a

ranted, with emphasis on the lead¬

How¬

is

market

a

485-

has

—•

along the East coast by a major
supplier, are favorable factors in

to discuss this

portant resistance top
ever,

The

averages?

the

for

peak

industrial

far obviously

prices and
rise

seasonal

ing,

asked

in

result

A

imports

and other pro-rated areas,
potential increase in California

it

be

position.

in

Texas

toward

also

and

consump¬

lifting of allowable production in

attempting to answer the
question: "I sthe bull market over?"
should

margins
the

industry's

cut-back

could

which

in

petroleum products high¬

1954.

In

profit

increases

of

Group

and

Stock

Unless

defense

orders

1953, or earlier. But even within
industries, we find great divers¬
ity. For instance, Hiram Walker

will remain
as last year.
However, the profit margins of
individual companies may widen,
because
many
planes
are
well
along
in
production.
Although
Boeing and Douglas are major
competitors for the commercial
jet transports to be ordered by
leading
domestic
airlines,
both
companies should receive their
share of the business. Meanwhile,

is selling 38% above its 1951
while
National
Distillers

spending

Selection
To illustrate this necessity for
pin-pointing individual group and
stock selection, it should be re¬

membered that the textile,

farm

liquor,
equipment, tobacco and mo¬

tion

picture

their

post World War II peaks in

stocks

all

reached

high,
and

expand, 1955 sales
generally the same

a

Schenley

selling 40% and 70%

are

in ACF-Industries, as

compared

with

Brake

American Steel

dries

and

J.

York

railroad

Air

Foun¬

equipment

and American Viscose,

group,
sus

the

in

New

Stevens and

P.

ver¬

Celanese in

letdown

serious

Glen

the

ex¬

may be expected by the
year-end. Issues most favored for
higher levels are: Great Northern
(40); Western Pacific (61); Illinois
Central (61); Chesapeake & Ohio
(51); New York, Chicago & St.

to be found

than

not

Meanwhile, higher

dends

been

bearish

average,

helping

are

some

a

more

on

does

traffic volume, as a result of the
business boom and closer expense

chart

a

20%, but

as

overstatement

respectively, under their post-war
highs.
Similar discrepancies are

ways

seems

in

defense

unlikely. In many

this group can be considered
instead of a war group.

peace,

Favor:

Boeing (61); Douglas (68);
(29); General Dy¬

Martin

namics

(53);

Lockheed
ican

Grumman

(35);

(45); and North Amer¬

Aviation

(62) for still higher

price levels. Garret (35) as an air¬
craft
supplier
is
also
recom¬
mended.

the textiles.
The Chart Tool

a

he

rise

Thursday, October 6, 1955

.

much

found over the years that
economists, in forecasting general
business conditions, usually have

Railroads:

thought the market

He

stock.

a

one

enough of this slack.

this

in

amplitude

probable

a

chart is nothing more than a

are

still warranted

of

Imust

seasv

furthered

decline

the

extent

depth

future

spending will be sufficient to ab¬
Over-

and

Straddling

sorb

dubious that civilian

gains offered

The iruits of research. For

and

are

dents of security values that 75%
of a given stock price is based

could

increase

vestors

the bears

are

certain

a

sideline in¬
the loss
of dividend income for any length
of time can be expensive.
prudent,

.

such

This is not true, as I
time again
to my own satisfaction.
A chart,
properly drawn and interpreted,
provides a means of measuring to

buyers

casting market trends.

friend what he

Census

to

as

have proved time and

reflects

output and defense expendi¬
tures may be further reduced, and

and

not

wise

never

hurriedly into the market, a
is likewise im¬

except

prices and farm income during the
I

is

it

happening.

too cautious policy

large

points.

suc¬

weeks

However,

President

of

for

slim

guesswork about

will

cessor

The

rush

contented, long-term investor, who
feels he cannot afford to accept

to be the major bull

seem

While

level.

when structual

occur

arms

peak.

shallow, with each rally ending
higher than the preceding top

steel
is
outmoded
by
stronger
synthetic materials?
(4) Industry's larger productive

There

What else is bullish?

estimated

of

the

national

prospect,
certainty.

a

bal¬

a

budget in

almost

has

and

the

last

automation

Imagine

still further reduced

a

Setbacks

prior to the emo¬
tional September decline were too

reasons.

undoubtedly has kept much

further

from

tronics.

enhower

Credo

Bullish

rived

buy in at

level.

.

I

use

tool

charts

in

my

as

a

work

very

valuable

of

79%

in

Net

the

first

income

half

over

com¬

forecasting
security prices, especially during
periods of uncertainty. Charts help
in measuring and
analyzing the
changing trends in the stock mar¬

levels, so that full
year
earnings might even reach
the postwar record of $902 million

ket, and

tent of

or

in

arriving at

selling conclusion.

viduals

charts

claim
will

happened

that

tell

and

a

buying

Some

indi¬

the only

thing

you

is

what

what

is

currently

has

parable

set

in

1954

son

These

1953.

overstated,

earnings

are

the

ex¬

however,

to

$190 million by rea¬
of tax credits arising from ac¬
some

celerated

amortization

Paper: Paper

climbed

permitted

by the Treasury. In individual in¬
stances earnings are overstated by

to make

statistics continue

good reading.

Plants are

operating at or near capacity and
prices have been firm and ris¬
ing. Just recently, paperboard and
corrugating material prices were
increased

about

has become

barometer
of

into

an

and

industrial

1956, the

5%.

Paper

use

important business
with

a

activity
group

high level

predicted

should con¬

tinue to do well marketwise.

Top

Number 5470

182

Volume

.

.

issues such as Scott (68);
Virginia Pulp & Paper (46);
and International Paper (104) are
caliber
West

and

Heyden Chemical (17) ap¬
like interesting speculative
purchases at present levels.
pear

recommended for long-term hold¬

ing.

More

speculatively,

favor

Marathon (31); National Contain¬
(20); and Robert Gair (28).

er

Automotive:

fairly

seem

now

that

ment

well

1956

million

seven

Detroit

sources

in
be

may

agree¬

another

If so, Gen¬

car year.

Gas:

Increased

for

demand

house heating and

gas appliances
causing the natural gas industry
to
grow
rapidly, and a further

is

rise

in

consumption

Actual

supplies

likely.

seems

estimated

are

to

be many

times larger than proven

reserves

of 211

trillion cubic feet.

should still be held, although new

Substantial progress is being made
toward the gasification of coal. I

purchases

favor

eral

Motors

should

and

stocks

this present level
temporarily deferred.

at

be

is

There

Chrysler

still

enthusiasm

no

American Motors and

for

the

Union

term

Packard, although they may have

Fuel

potential.

merger

dicted

also

1956

pre¬

volume

should

profitable

tions

for

parts

companies, such

better

grade

auto

Bendix

as

Gas

reduced

son

Rayon

(44); and Rock¬
& Axle (27) which
all appear to indicate higher price
levels.
Houdaille
Hershey (15);
well

Spring

-

National

Automotive Fibres

Products

radio

and

selling near their lows for the
principally because of fears

year,

that their defense business may be
curtailed.
However, there now

small

seems

probability that

Administration
contracts

far

as

cerned,

siderable

a

special

With sales

are

year

ago.

are

high

shipments
emphasis

yarn

with

tire

on

uptrending and

profit margins widening, it seems
that
the
year-to-year improve¬

our

industry isexpect to have

publicity
color

the

over

balance

mean

some

cases.

Beaunit

con¬
con¬

P.

in

Stevens

(25);
Merchants

this

(31);

higher
looks

for

group

Celanese

good speculation
Drugs:

contribute

at

importantly

to indus¬
The high level

disposable personal

re¬

also

In

my

difference

large factor.

a

opinion, the climate for securities
in this group from now on should
The major man¬

share.

Sylvania (44);
(44);
Philco
(32);
and
(116), can be bought in

istics.

visable

in

at

*f

many

Cable

showing

price

present

General

levels.

for

reaching

issues

these

(22)

an

will continue.

important fabricator, is especially
favored

Trust

has

to

advanced

13

cents

a

pound and lead is in good demand
at

15% cents.

bined

This makes

price

sidered

be

to

objective.

chance

will

com¬
con¬

Government's

the

Most

there

price

move

the

of

will

get

on

five years
will come
from depreciation, retained earn¬
ings and some borrowing. There¬
fore, it would seem safe to as¬

attractive

most

lead-zinc

of

won¬

commercial
The companies

the

that the

sume

producers.

market

about

are

and

away

(37) and Hudson Bay Mining (64)
two

carriers

the

expand

purchases

(19); and New Jersey
(39) for higher price levels.
Consolidated Mining & Smelting

Canadian

Many

themselves have stated that these

Zinc

Zinc

are

to

airliners.

jet

favor

can

where

der

funds

immediately higher.
St. Joseph Lead
(49);
American Smelting (50); Ameri¬
I

earn¬

the talk

carriers and

buying jet transports.

seems

combined

the

domestic

do

producers

well at this level $nd
little

a

cents,

28 %

of

Accordingly,

ings in the industry are increas¬
ing. The outlook at the present
time is rather promising. Recent¬
ly some of the airline stocks have
been depressed.
I believe this is
due in part to the reduction of
transcontinental fares by leading

Selection

has speculative appeal.

(7)

Zinc

Rhodesian

and

growth

strong

very

a

trend and indications are that this

funds

for the poor

reason

action

the

of

psychological than anything

nitely favored for investment and

else.

This

the

a

producers

defi¬

are

longer range outlook indicates

substantially higher prices.

is attractive

retained.

be

Air

United

favor:

on

Lines

I

(37);

aluminum per car every

more

American

Airlines

investment

Air Lines

(47); National Airlines

straight

For

year.

group

earnings basis and lead¬

ing issues should

Auto¬

mobile companies are using more
and

future

merit, Aluminium Ltd. (105) with

(23);

tighter

by

The recovery in
August after a two month dip in
June
and
July seems likely to
extend through October.
Cement
and

gypsum producers are in an
especially preferred position with
demand
exceeding
the
supply.
The over-all construction

continues

to

be

outlook

attractive,

with

schools, stores, churches and
being required to accom¬
modate an expanding and migra¬
more

roads

tory population. I favor: National
Gypsum (52); American Radiator
(23); Celotex (34); Johns-Manville (81); Congoleum (22); and
Certain-teed
(25).
Among
the

(63); Lehigh
(67); and
Penn-Dixie
(32) appear attractive for long
term holding.
Lone Star

cements,

Portland

...

Motion

Pictures:

Earnings

dividend

some

sible,

increases

movie

yet

are

pos¬

are

stocks

still

lagging behind other segments of
the

This may be

market.

the

possibility of

a

due to

decline in the-

Continued

on

page

T\

income

...

V

"

..

,

'

<

is

r

i

''

-

»

^ t

-

<<• ,V

'

-

K

•

"

"

;"e, < '

""

v/

'

There is little

between

ethical

better.

ufacturers such
Radio

Zenith

as

and

further minor

price setbacks. The
most interesting speculations cur¬
rently are Hoffman Electronics
(22) and Admiral (21).
Electrical: General Electric

(49)

obviously, continues to be
leading issue in this group,

quite
the

since

particularly
Electric

(59)

Westinghouse

reported

such

poor

comparative earnings for the first

proprietary firms regarding higher
and
average
earnings per

ting

utility

in

to have

now

seems

and

advise

its

run

course

purchase of Westing-

house here for

substantial

a

price

The future of many of

recovery.

issues is

these

equipment. ! This

geared to automa¬

tion

and,

vor:

Minneapolis Honeywell

in

this

connection,

and Cutler-Hammer

issue

ialized

this

Pacific

Federal

whose

in

(66). A

spec¬

is
(15),

group

Electric

earnings

fa¬
(56)

increasing

are

substantially.

search

It

creasingly

hard

electronic

and

is

to

getting

in¬

segregate

the

securi¬

electrical

purely electronic
like Consolidated
Electronics (31) and International
Tel. & Tel. (27). The latter is not
ties,
but
for
speculation I

electronics

an

but its

company,

growth potential

seems

lie in that field, particularly
the

development

aerial

reach

with

of

its

to

with

Tacan

navigation system.

Chemicals:

Industry

sales

peak levels this

new

higher

earnings

also

may
year,

indi¬

In the first half, sales and

cated.

earnings

of

the

eight

chemical companies were

25%

respectively,
comparable
year

ahead
ago

largest
18% and

of the
results.

Chemical stocks do not appear too

high, relative to the general
ket.

Since

mar¬

Dec,

31, the common
stocks of these same eight com¬
panies advanced an average of
about 26.6% in the
a

little

over

20.2%

market, versus
for the

Dow-

(55); Dow Chem¬

American

Cyanamid

Parke-Davis

(56);

Air

(45).

(38)

appear

cially

attractive

minor

Reduction

(54);

Commercial

and

(35);

Food

Monsanto

Solvents




(21)

REPORT

PROGRESS

FOR

espe¬

price concessions.

Utilities:

for purchase on

(Electric)—Output

V

is

about

15-16%

trillion

1.04

increase

over

the

kwh—a
1954

rate.

250%

Dakota

-

Con¬

down

Oklahoma

&

for

Gas

Electric

&

Gas

Metals:

capacity.

It

that 1955 will be

We

(17);

historically

this

to be a

high

for

a

speciality producer and Vanadium
Corp. (38), seem attractive.
Others indicating
still higher
levels are Wheeling (58); Eastern
Stainless (26); Allegheny Ludlum
(53); and Colorado Fuel & Iron
(28). The copper price situation
is extremely confused.
Although
the
price
has
retreated
from
50

to

than

cents

47

sentiment
and

a

copper

U.

Western

intention
for
in

mines

in

S.

price

struction of a
for

large,

encouraged

profitable

research center

near

The overall outlook is

approved

by

our

initial polyethylene

.

this venture
for the Company. We anticipate

one

of

con¬

Kansas City, Mo.,

encouraging and stimulat¬

us

rent

confidence. Barring unforeseen

fiscal year should

be

a very

gives all

obstacles, the

satisfactory

one

cur¬

for the

Company.

CONSOLIDATED

INCOME

1955

has upset
market,
Chile

important

FINANCIAL POSITION
Year Ended June 30

$19,592,521

NET SALES OF PRODUCTS

$34,104,178

$17,578,421

Cost of
»

products sold

6,178,946

4,908,673

.

.

.

.

$27,950,067 $29,168,905

.

WORKING CAPITAL

.

.,

_

$25,771,467 $22,487,094

OTHER ASSETS (net)
NET ASSETS.

,

BEFORE TAXES

..

.

.

$10,383,454 $11,617,084

,

INCOME TAXES

.

.

.

.

....

_5,265,000 __6,330,000
$ 5,287,084

$ 5,118,454

748,793

$57,828,162

$25,000,000 $25,000,000

PREFERRED STOCK

(less sinking funds)

FEDERAL AND STATE

408,485

.

BORROWED CAPITAL

NET INCOME

....

COMMON STOCK EQUITY

.

SPENCER

PRODUCTS
SPENSOL

(Spencer Polyethylene)
Anhydrous Ammonia

Refrigeration Grade Ammonia
Aqua Ammonia

•

Kansas City 5,

Missouri

Formaldehyde
"Mr. N" Ammonium

WORKS:

Pittsburg, Kansas

Vicksburg, Mississippi

•

•

Chicago,

Henderson, Kentucky

Illinois

•

Orange, Texas

(Spencer Nitrogen
Solutions)

(

83% Ammonium
Nitrate

Solution

FREZALL

Methanol

Dwight Building

7,484,512

25,343,650

been published.

POLY-ETH

COMPANY

14,550,010
26,606,428

SOURCES OF NET ASSETS $66,156,428 $57,828,162

Spencer Chemical Company's Report for fiscal 1955 has just
A copy will be mailed to you on request.

CHEMICAL

38,095,132

45,366,863

$66,156,428

.

.

10,184,668

7,568,987

$20,381,080 $18,984,237

.

PLANTS AND EQUIPMENT

Selling, administrative and
other expenses(net) .
.

NET INCOME

CURRENT ASSETS

CURRENT LIABILITIES.

COST AND EXPENSES:

1954

1955

1954

$36,154,921

OF

STATEMENTS

CONDENSED

OF

Year Ended June 30

of
an¬

copper

cut

new

completion in 1956.

increased working

substituting

Anaconda's

has

emphasize its research program and has

con¬

polyethylene plant

Lon¬

Electric's
of

copper

the

strike at

are

it still is higher

cents,
official

the

cents.

nounced

pound

a

in

nitrogen products

The Company continues to

the current fiscal year.

in

ing. The present national climate for business

CONSOLIDATED

This is
cyclical

industry, but steels have regained
a
strong
investment following,
and the
ratio, while calling for
caution, may not be regarded as
too high.
Leading issues should
be held.
Harrisburg Steel (31) a

above

our new

SUMMARY

certain
all-time high

year.

record in

growth.

selling at 9-10 times the earnings
for

new

production and sales experience and expect

(38);

production year, with ingot out¬
put estimated at about 115 million
tons.
Leading
steel issues
are
visualized

a

capital to $20,381,000.

seems

an

of

financing and retained earnings

exceed

to

established

'J

satisfactory results from sales of our

ended June 30, 1955. Net earnings were

slightly because of non-recurring expenses

orders
for
produc¬

Incoming

continue

tion

,

Message from the President

Orange, Texas. While capital expenditures were

new

attractive

are

greater-than-average

steel

at

i.

...

A

nection with the start-up

South

(27);

Electric

Carolina

"****1

•'..

.••

..

the fiscal year

Power

Montana

r

Net sales of the Company

(48); Ohio Edison
(48); and Baltimore Gas & Elec¬
tric
(34) are favored for sound
income
and
moderate
growth.

sumers

.

Lw****"*4

a

reach

'

I

ahead of
year ago and long-term growth
estimates are optimistic. By 1964,
domestic
power
production may

running

aluminum

Machinery

re¬

the

further enhance the longpotential.
Abbott Labora¬
tories
(41); Bristol-Myers (30);
Sterling (50); Merck (22); and

43

average.

on

and

sales

uses,
term

Olin-Mathieson

industrial

(53);

to

of new fields for drug
consumption, such as agricultural

don

ical

spent

opening

At the
present time, I favor retention of

Jones

relative

character¬

population, the

amount

Tampa Electric (26)

Electronics:

strictly

defensive

and

Increases in

substantial

half.

However, much of the drop
in earnings was due to price cut¬

Drug stocks have excellent

growth

are

projected higher for most major
movie
producers this year and

World Air¬

Pan American

(23);

Eastern

affected

mortgage money.

is

group

more

Aluminum

little

been

sales

be much

,

items should

try results in 1955.
of

ways (18); and Trans World Air¬
to this country.
Since earnings 24% above last year
lines
(26) on periods of minor
earnings of leading com¬ should be purchased and held.
price setbacks.
panies will be excellent, reten¬
Airlines:
Passenger traffic in
tion is advised, but caution is ad¬ the
airlines
Building:
Home
building has
industry has been"

supplies

present level.

drug

New

45

full year

prices.
like a

also

(21)

fall

this

television.

This

dividends

higher
J.

1955.

of

United
(19); Lowenstein (26); and Bur¬
lington (17) seem best situated in

defense

cut

this

we

garding

will

much further and,

very

as

backlogs

of

yarn.

could

The

television stocks for the most part
are

levels

income column will be maintained

TV:

and

order

and

the

are

ment witnessed to date in the net

(30);

(24)

Radio

specu¬

(18);

speculative purchases.
I

good

as a

and
Motor
appear like
good

Wheel

Motor

Eastern

quite ertcouraging. Inventories
above

Electric Auto-Lite

for value and

Textiles: Industry prospects are

Aviation

(47); Eaton (53); Thomp¬
Products
(46); Dana
(48);

(30) for longMississippi River

Corp.

growth;

(27)

Brooklyn
for
income;

(33)

Gas & Fuel (13)
lation.

opera¬

car

guarantee
the

The

following:

Gas

United

Studebaker-

some

(1433)

The Commercial and Financial Chronicle

.

Nitrate Fertilizer
America's Growing Name

(Spencer Dry Ice)

Cylinder Ammonia
Hexamine

In Chemicals

45

46

The Commercial and Financial Chronicle

(1434)

.

.

Thursday, October 6, 1955

.

"J

,

Continued

Start

jrom page 45

in

Reducing Federal Debt Now!

terms

but

in

some

"The

Trust

Over?

Is The Ball Market

Guaranty

Company of New York,

desire for tax
atre

attendance,

attendance,

the another very critical examination
the of the whole market price struc-

that
that

now

atre

now

companies have started programing for TV, and also on account of
questions about the value of their
respective film libraries.
Generally speaking, however, amusement
stocks represent attractive

worthy of purretention at prevailing

values and appear
chase

and

price

levels' Loew's (20); Para(38); Columbia (24); and
(27) are the "qual-

mount

20th Century

Further

ity" issues of this group.

appreciation is expected for ABC-Paramount (28)
in the theatre-broadcasting field,
growth

and

also appears
interesting buy at present

Warner Brothers (19)
like

an

jevels#
>h

*

*

1956.

appears

a

n/j

Jfpar

far

nnw

to

in

nrnhahle

reachfng and'

view

vL

that

vmii

no

nnt

again

will

in

1956

resumption of
However,

occur

that the balance of
shift of leadership

been so wide, and this gap should

hkehhood

the

run

Ymmediate

untrend

the

of

a

the far

dee«?

soberlng^implica-

dent\°illn«snaen'dS
+w

it

me

see

an-

general

the

a<?

fe nnnlpmpH

w

be narrowed during the next lew
The success of any investment

program at

ke* depends on concentrating on
those stocks in industry groups

at

inHnetrink
nn

(the August low point), and especially at 435-440 on the industrials and
140-145 on the rails,
which I do not believe will be
reached.
As stated above, the
President »is
identified
closely

that

out

Guaranty

issue

October

threatening to gain ascendancy.

"The

of

ury—the
dint

of

five

in

best

billions

By

year.

this

all

means

from the

longer range economic and politican
standpoints is difficult, in

to estimate as
this article is being written. Much
attention from here on will be
fact

impossible,

While a new high on the
averages is not foreseen for the
ba'ance of 1955, a continuation of
this highly selective rotating market is certainly anticipated.

ever.

ernment

alone, with rates on in¬

dividual

alone)
with

also

incomes

ranging

Federal

to

91%,

industries

and

from

numerous

their

20

burdened

customers

by

of

because

$1.4

by

up

mainly

billion,
prospective

a

rise in the cost of farm price sup¬

ports due to large
result

is

$1.7

and with State and local tax rates

lion

high and rising, the need for tax

January.

relief is

The net

crops.

estimated

an

heavy and discriminatory excises,

deficit

of

small surplus

only too obvious.
there

"Yet

than
and

to

seems

be

more

possibility that the natural

a

legitimate desire for tax

re¬

lief, combined with the special
political pressures of an election
the

equally
strong case for debt retirement to
be overlooked altogether. In some
contexts, 'too much and too soon'
year,

may

be

can

cause

late.'

too

than

worse

Even

Carrier
Colgate Palmolive

50

the

—_

53

would

^.^1®na Distillers

_

20

'too

little

from

and

the

tax

reduction.

Pittston
Deere
_____
Chjcago Corp.

23

JJ. S. Plywood

39

the most
unfolding

haps

recorded in the market during

that

lieve

the

illness

President's

in nature, and
impair the basic
strength in the nation's economy.

work has
not indicated a major
distributional market top, and
no
important reversal signal has been
registered by the main body of
stocks, the general market was
long overdue for a normal correction.
Many blue chip issues
were
selling high on • earnings,
The recent laggard action of the
rails, the formidable. psychological
barrier confronting the industrials
at
the
485,490
level,
and
finally the uncertainty and
slightly bearish import of the
latest

news

37

technical

has

now

been

pretty

generally discounted marketwise.
i

it

Consolidation and Advance

to

billion,
less

about

or

than

mil¬

$700

forecast

was

This

implies

a

in

very

probably amounting
in the socalled cash budget, the Treasury's
about

to

actual

$300 million,

money

public, which
as measuring
'deflationary'
operations on
"The

dealings with the
is widely regarded
the 'inflationary' or
impact of Treasury
the economy.

estimated

deficit

is

equal

to

only about 3% of the total
budget, and a further increase in
tax receipts, a cut in spending, or

'

10

arises

as

debt

from

GlVO

lllfWIIHCIH UUUIOCO

Hardy & Co., 30 Broad Street,
New York City, members of the
New York Stock Exchange, announce inauguration of two informal courses for adults, one to
be given in the afternoons and
the other in evenings, on "Invest-

ment for Security and Income."
will start
on
Tuesday, Oct. 18, 1955 from
8:00 to 9:30 p.m. at the Hotel Delmonico, 502 Park Avenue.
Subsequent evening sessions, of which
there are nine in all, will
be( held
on Mondays at the same place.
....

course

.

...

I

debt

no

of

the

retired.

was

By contrast,
payment against

appreciable

the

World

War

War

II

debt

has

ev|er

made, except the quick and
repayment

easy

of

funds

never

at the close of the

bor¬
but

war

spent."

Monetary Mechanism

,

was

the

In the 17th

considered

mathematical

Newton to work
our

age

with

genius

on

have

we

Century

desirable to set

through the Christmas season into
the
of

new

both

year.

Of course, a failure
to reach new

averages

highs after this period of reaccumulation would be

a

definite pre-

cautionary signal that the under-

lying

trend

would

be

changing

will start

on

Oct. 20 at Schwartz's Restaurant,

con-

two to four weeks, and then another
upward move lasting

Samuel

c
Greenfield, lecturer
registered
investment
ad-

ancj

,

m

d

t th

'
*

sessions.

of
a
this task. In

been

satisfied

slap dash methods,

•

a JJ

HIV. TTanning Adds
(Special to the financial chronicle)

Monetary

Equation
But

if

"Holloway,
shall

cult

to

tion.

express

reach

only
clear

of the forces

use

bility.

To

making for sta¬

make

mechanism

the

efficiently the subjects must
the

untrammelled

right to
own, buy, sell, import or export
the
monetary metal.
All these
forces

are

anism

of

essential

to

the mech¬

of

the

forces which "operate in
monetary system, for they
represent the inner core of the
any

In

fact

ference

be

may

if

there

with

is

serious

any

inter¬

these

forces, there
at all, but only
promises to pay.

no money

mechanism

ersatz money or

measures

There is such serious interference

of money. As money
value and as no objec¬

tive value

exists,

as

therefore in

in

now

almost

country

every

a

of

The first of the forces operating
in a metallic standard was that

issuing

authority

was

pre¬

pared at all times to buy and sell
the monetary metal at the same

price. This is

a

very

this is not yet the case.

68 Devonshire Street.

the

potent force

issuing authority used

these

forces

elimi¬

were

nated the two sides of the equation

which enter into the equation.

if

When

clear idea of the forces

its

political
power
in
a
manner
which would jeopardize or reduce

parted

soon

company.

The

dol¬

lars and cents in which the price
of commodities was expressed be¬
came

effort
one

jtaper
was

money.

no

great

required to produce it,

of the most important factors

making for sound
ly,

As

the

relative

money,

scarcity

name¬

of

the

precious metals, disappeared from
the

of

field

gold

of

was

currency.
no

in

did

where

fact

it

was

it should have
daylight that no

as

push it

ever

again

be

worth

12 pence.
We can disregard the
subsequent plummeting although
the post-first-world-war specula¬

tors

in

marks

did

The

not.

curi¬

thing, however, is that when
the British pound depreciated to
less than 10 shillings it was still
deemed possible to roll it uphill
ous

to its old station and

to re-estab¬

lish the equation which existed in
1914.
That

attempt

the

results.

tion

and

had

to

of defla¬
trade, Britain

depressed

give

the vain struggle

up

1931.

Other

Sisyphus

countries

during the next five
attempt

We know

1925.

After years

in September
beaten.

made by Win¬

was

ston Churchill in

roll

to

the

was

followed

The

years.

stone

uphill,
relatively slight gra¬

along a
dient, had failed.

even

The attempt to

write up to higher values in gold
the
depreciated moneys
which
been

foisted

the

on

commu¬

nity during the war and immedi¬
ate postwar years proved to be a
burden

of

than

the

production
the

were

They

mecha¬

could

bear.

years

failed

to

understand

The price

longer expressed

already

oc¬

impossible to
that unless the

was

reverse

it,

measure

of value

and

were

brought in

line with the realities of the price

level, a devastating deflation
the only alternative.

was

The Gold Standard After 1931

was

and

the

a penny,

would

ard

money

we

of

back to the point where the same

efficacy of the monetary machine.

idea

sound

of

-

me:

vulgar frac¬

a

earth could

power on

mark

is

clear

as

point

been

that

a

value

the mark

the

worth

out

have

the

see

When

detraction from them reduces the

to

I

still

student

daring, told
prophesy | that

German mark fall to one penny!"
Neither of us foresaw at that time
that it would fall to a point diffi¬

anything is fixed at a
given point some force is required
to keep it fixed there.
Indeed it
essential

fellow

a

curred, that it

work

BOSTON, Mass. — Everett H making for the stability, which a
Berrish, Emanuel Morningstar and measure of value requires.
It
Walter J. Raleigh have become would be
quite useless, however,

from bull to bear, but at present




equation

difficulty in

that the inflation had

have

Forces Operating on the

the
D«

affiliated with Investors Planning
Corporation of New England Inc.,

However,

great

greatly

tion.

stability. It
so
use its
power if it pre¬
vented its subjects from
making

to have

hesitation of from

the

on

maintained.

could

p.m.

another phase of

old

be

the attainment of that

riod of almost 40 points should be
and

in

com¬

during
which the forces necessary for the
preservation of sound money had
been placed out of action by gov¬
ernment
decree.
Most
people
thought that raising the price of
gold would launch a new infla¬

54 Broad Street, from 4:00 to 5:30

followed by

drug

a

the

one,

1916

These

As I project the market pattern
ahead, this deep reactionary pe-

sessions

In

mine,

nism

measuring value both the meas¬ the world and the world is in ef¬
fect trying to subsist on a money¬
ure and.the.object measured are
in motion, it is the more essential less economy.

Afternoon

solidation

became

common a

longer

they had

had
rowed

10

page

The
recalculated.
it

evening

Three-eighths of the World

retire¬

result

a

its great war debts. Two-thirds of
the Civil War debt was paid off.

The Role of Gold in

InVPQTItlAltl RAIIfCPC

>phe

tax

been

of

B

||3f||y QOi

retirement
future

load.

question

26

Pittsburgh Coke & Chem...

will not seriously

Although

to

no

greater

Texas Gulf Sulphur ....... 38
American Steel Foundries. 33
International Harvester ... 37
be Coca Cola ...
125

will

tax

Continued

the

political

merely

ment

53
3
39

—

Debt

comparatively favorable position
achieved by the Federal Treas¬

Many others beadverse effects of

first two weeks.

the

"The

26

Standard Packaging
American Can
United Fruit
United Biscuit
American Brake Shoe
uncertain part of Warner Lambert
picture has been Safeway St<°res

Republican standard bearer and
reviewing GOP chances at the
polls next Fall. Quite obviously,
no
satisfactory solution will be
forthcoming overnight, and per-

burden.

contribute

the future

|j5

"——-

tax

Conversely, too exclu¬
sive emphasis on tax reduction
now, resulting in a continuation
of deficit financing, would add to

8U
3<t

devoted to consideration of a new

this

But

persistent effort, expend¬

,

What

what

so

was

Nobody found any diffi¬
culty in understanding that when
the German mark
depreciated to

Augmenting the foregoing com- standpoint, a long-range view a combination of the two could
the
desirability
of produce an actual surplus by the
with the prevailing business pros- merits on various industry groups emphasizes
debt repayment.
The interest on end of the fiscal year nine months
perity. In a sense he has been and individual issues within
the debt accounts for more than hence.
the rallying point and cornerstone
groups, I would like to draw
one-tenth
of
the
total
budget.
around which the business boom attention to 20 miscellaneous is"As for the debt, perhaps the
This means
an
average
annual most significant fact is that this
confidence of the past three years
sues not covered in industry rehas been built.
For this reason ports that I favor purchasing for charge of nearly $58 on every is the first time in its
history that
many consider his illness as damfurther price appreciation. They member of the noninstitutional the United States Government has
population over 13 years of age. let so much time go by without
aging also to the favorable do- are as follows:
mestic and political outlook in
Current The cost of carrying the debt is making a real effort to pay off at
1956, but it takes a long time to
Range a far from inconsiderable part of least a substantial part of one of
destroy such confidence.

countries

commodity

market.

despite the

for debt retirement,

case

scarce

of

modity that it

could

The

this stage of the mar-

there^s good^up^ort on ihe Dow^ that will out-perform the aver^
the
445-455
aSes ln the period ahead. Selecfrea
the rails at 150-152
tion will be more important than
and

strong

a

Guaranty Survey," monthly pub¬

to many of the lighter blue chips.
The spread in yield and price between the two groups has seldom

General Market Outlook

points

of

a

It would appear that the great- lication of the Guaranty Trust itures have been reduced from seeing that when it required IV2,
est opportunities for profit lie in Company of New York, in an edi¬ $74.3 billion in fiscal 1953 to $67.8 1% or 2 paper pounds or dollars
to buy the same
quantity of com¬
the secondary stocks, rather than torial article, entitled, "The Boom, billion in 1954 and $64.5 billion in
in many of the high priced lead- the Budget and the Debt" states 1955. Meanwhile, business pros¬ modities as one gold pound or
dollar
had
bought
the
before,
ers, although I am fully aware there could be no more
logical perity has yielded unexpected'y terms of the
equation were also
that the latter group has been and
time to make a start on Federal high' tax
revenue.
Fiscal
1955
drastically changed.
still is the favorite with mstitu- debt retirement than a time of ended with a deficit $300 million
Now it is true that while it is
tional funds and conservative m- business boom when inflationary below the January estimate, de¬
not possible to roll a stone
uphill
vestment buyers. Actually, there
pressure
is threatening to gain spite unanticipated expenditures if the gradient
becomes too steep,
are many good value stocks still the
of more than $1 billion.
ascendancy.
it is nonetheless
possible to do so
selling pretty low, and providing
"The revised estimates for fis¬
"No one
questions the desir¬
if there is only a
relatively slight
yields of over 5% with a fair
1956
show
similar
trends.
ability
of
tax
reduction,"
the cal
gradient. Can this parallel be ap¬
amount of safety. A lot of disSurvey states. With corporations Revenue is now expected to be plied to the forces that
maintain
counting of higher earnings has
$2.1
billion
above
the January
the equation between
been reflected in the prices, of paying more than half of their
gold and
net earnings to the Federal Gov¬ estimate, while expenditures have
paper money?
many blue chip securities, and it
been written

1955 will

The

relief, there is

when inflationary pressure is

ture will be quite necessary early
in

Survey," monthly publication

of

terms

To those who
understand

which

are

this,

in

1931

I
the

too

I

mentioned

therefore

point

Gold Standi

still the rule.

working freely.

young to

should

The forces

above

were

An attempt was

made

to
force
prices
point at which gold
had been fixed.
That inevitably
meant that they had to suffer a
heavy fall. And as the community

down

to

lacks

the

tolerate
there

ing

suppleness which

can

heavy

a

was

The

clear

the

a

fall of .prices
disastrous depression.

reason

for this

enough if we .go
the forces which

disaster
on

is

study¬

cause

the

monetary mechanism to operate.
In a highly developed
society the
means

of subsistence of the work¬

the materials which they use
the tools with which
they
produce must all be advanced
long before the finished articles

ers,
and

produce
for

all

the

these

therefore,

income

which

pays

things. Inevitably,
debt is created.
But

is

debt

not

cf

none

Number 5470

182

Volume

It

money..

is

.

not

a

of

these, an agent of its principal—
money.
One of the prime confu¬
sions, one of the reasons why so

people

many

have

the

lose

about

discussions
we

got

used

"debt"

word

and

"credit"
As

as

has

partner,

of

synonyms

debt

society

oped
what

of

the

equation

paper

the

between

paper

to

higner productive efficiency

be attained if

treat the

we

tary mechanism

can

mone¬

as

work

gold

and

are

of

amount

and store
achieve

measure

possible

to

put out of ac¬
happens then is that

money

What

a

as

efficiency.
Monetary
management in effect claims that

when the forces which maintained

tion.

value

merely as a
mechanism of production but also

set

are

justice.
Both of
these aspects require as sound and

examine

must

we

forces

new

distributive

a

money.

inevitably to play

large role in any highly devel¬

a

of

unchanging

the

money

on

instrument of policy.

an

It

not

does

indeed

not

claim .that

higher distributive efficiency is
gained by management.
Such a

a

claim
in

would

face

of

be

moronish

the fact

that

fatuity
the

even

the other hand increases very fast.

strongest currencies have lost half

Obviously

the terms of the two
sides of the equation change in
value. As the first one—a given

their

quantity of gold—is prevented by
decree
from
exerting its usual
force all debts must be expressed

large and

readjustments of
salary scales and such

involved

devices

the

in

The

second.

of

number

units of paper currency which ex¬

given debt therefore

a

press

creases

setting

debtor.

is

in¬

paper

continues

by giving something which
getting more plentiful. In

ever

fact

has read

one

in

of debtors

a

rapid inflation seeking
out
their
creditors
and
paying
them off mercilessly!
period

of

this

But

process

both

forces,

new

tive

and

On the

side.

productive side it destroys
One need only think of

capital.

balance-sheet

the

up

the produc¬

on

distributive

the

on

sets

soon

of

a

company

carrying large quantities of ma¬
chinery subject to heavy depre¬
ciation, cr the large amounts of
derived from death duties

money

for current needs to ap¬

and used

'■I

On

up

end

no

side

distributive

the

it

sets

industrial disputes.

of

It is curious how few people real¬

ize that all

the production lost in

industrial

such

disputes

as

are

caused purely by

the falling pur¬
chasing power of money is a di¬
rect
result
of
a
bad
monetary
mechanism.

All that lost produc¬

of

decade

a

managed

that

and

money

re¬

repeated

quires

clauses

aged

in

escalation

as

contracts.

The

man¬

could, however,
claim that these adjustments are
not beyond human ingenuity, and
moneyers

worthwhile

are

if

they permit

a

higher level of productivity to be
attained.
j
How is this

higher level of

pro¬

ductivity to be attained? "Sim¬
ply," so the reply would run, "by
causing

enough

exerted

mechanism

management

create the divine

away

side

demand

impli¬

one

portance in this theory of

moneyers?
I

money

that the full floodlight of enquiry
should be focussed on it.
If the
money

of the people is to be

A

be

in

vested

third

the

implication

be

found

man¬

that

a

nism.

For

down

ing

than any other man,
present
authoritarian

into

the

United

States

under

the

strain

of

acute

implication is that such a
monetary system must inevitably
be authoritarian since the timing
and secrecy which are its essen¬

(Foreign
Affairs,
January 1945). He was, of course
referring to wars. Can it, how¬
ever, be forgotten that in time of

tials

do

not

war

tern

of

work

of

a

the

emergencies."

pat¬

deliberative

the

sentences

phy

of

one

in

Oliver

the

pregnant
political philoso¬
Cromwell said: "We

all believe in government by con¬

But

sent, but where shall that consent

civilized

state

be found?" Describing the English

store

individual

Revolution

jects all these matters

wrote:

"For

1688,

the

Lord

divine

Acton

right,

Rudolph, Others

when

by

a

war

is

over

which

nnssible to the due

of

Join Morton On Coast
(Special to The Financial Chronicle)

SAN

Morton

&

Co.

Mr. Rudolph

his

conducted

vestment business in

Jack L. Colbert, Gilbert B. Gabbert, Garland B. Hall, George L.
Payne, James Pray, De Forest
Riechard, David L. Schrader, Clar¬
ence R. Soderstrom, Hugh L. Torbett, and William P. Wright, all
previously
with
Mr.
Rudolph,
have
also joined B.
C. Morton

& Co.

every

sets

any

liberty

sub¬

as

process

soon

as

of law.

Chicago Analysts to Hear
CHICAGO, 111. —On Thursday,
13, E. S. Hann, Treasurer of

Oct.

Kennecott

Copper

Corporation

will address the luncheon meeting
of

the

ciety

Investment

of

Chicago

12:14 p.m.

Analysts

to

be

held

19th

is

nity.

there

because

lost

demand

is

for it is lost for all

If

the Midland Hotel.

no

eter¬

the

keep

can

we

labor

force of the world employed to its
maximum by maintaining an ef¬
fective demand for it all the time
we
mav
well
gain in increased
productivity much more than the
cost of operating this vast man¬

agement machine.
tain

this

by injecting
into the mech¬

money

this

whenever

quired.

To

however

main¬

can

demand

fiat

more

We

able

be

be

must

we

the discipline

is

re¬

do

to

this

freed

from

rigid standard
of value.
This increased produc¬
tivity would also in a measure
mitigate the injustice which the
system commits in the field of
distribution.

of

a

We

have,

all,

after

in two decades of

monetary;»paa«7,
price the community agement hud no majbWii^prassI^^;in the "principal industrials areas
pays for working with a bad mon¬
etary-mechanism instead of using of the world and this should be
the highly efficient mechanism of counted to us for righteousness."
real money which has been de-, :.b This ,i& not myethesis^^JU, isrdn a
h! ghly
veloped through the ages.
tion

the

is

•

however, we try to re¬
process—roll the stone
uphill — when we try to restore
the equation to what it was be¬
fore one of the terms got out of
hand, we inevitably increase the
When,

the

verse

debtor's

burden.

that

large, r^e

view

In

debt

of

the

plavs in the

productive

mechanism

of this

force is to put a heavy

new

braking effect
of

the

effect

the mechanism

on

the amount of
that force is great enough—or in
customary jargon—if we deflate
production.

sufficiently
fast,

can

we

If

far and sufficiently
bring the productive

mechanism to

almost complete

an

This

is what happened in
the Great Depression and this is
stop.

what will happen again if we try
the stone uphill, if

roll

to

we try
equation by making
the terms between gold and paper

to restore the

money

match

at

the point where

they matched before the
are

war.

into

by the choice
bringing the price of gold

line

with

the

vast

quantities

of paper money or facing a devas¬

tating
with

depression,
a

bad

mechanism

and

for

not

Droved

is

on

monetary

evermore.

"But" someone will
have

going

or

costly

object "you
managed

that

bad

money.
You are
tacitly assuming that mankind has
money

found out all it

monetary

possible
ment
ess

that

can

of

can

about

mechanism.

Is

a

sound

it

not

monetary manage¬
the age-old proc¬

carry

improving

mechanism

a

the monetary
stage further?"




jargon

which

would

make

it

unintelligible, the quintessence of
the
argument
of
the
managed
moneyers.
It is the position they
will have to establish if they wish
to
hold
the
field
against
the
proved excellence of the discipline
of a rigid standard of value, since
clearly the community does not
put power into the hands of a
group

simply to enhance the hon¬
glory of that group. The

and

or

examination

of

this

lead

so

many

us

into

thesis

would

bypaths of

Nine Months

theory that it is obviously not to
be

already

lengthy

it carries

the

of

cur

disquisition.

As

at

attempted

end

Report

deep into the field of
the chapters in our textbooks on
us

Mailed to

Economics, generally grouped to¬
gether under the heading "Distri¬
bution"
focus

I

14,300

would, however, like to

attention

on

a

few

its

of

Shareowners

implications.

We

therefore faced

between

of

Implications
I

of

Managed

Money

resist, at the outset, the temp¬

tation

to

whether

dilate

the

on

mankind

is

as

FREE

problem
yet

question whether the large
of mankind
vested

ing

can

or

should

COPY ON REQUEST

suf¬

WRITE DEPT. 6

ficiently advanced in the moral
sphere to operate a system of full
employment. This would raise the
masses

AMERICAN-MARIETTA

di¬

be

lOI

EAST

ONTARIO

STREET, CHICAGO

COMPANY
11, ILLINOIS

of the function of exercis¬

responsibility

and
whether
can or should, under
dispensation of the divi¬
sion of labor, be vested in a lim¬
ited number
of
managers.
This

PAINTS

•

RESINS

•

ADHESIVES

•

CHEMICALS • METAL

POWPER9

this function
a

new

would

take

us

into

the

sohere

the boundaries between Free

of

En¬

HOUSEHOLD

Revelations in

PRODUCTS •

BUILDING

So¬

at

in the Adams Room at

to

that

in¬

own

San Jose.

full
employment.
Labor
keep, as they said in the
Century. Every day's labor

won't

in¬

on

freedom

wants,
saying

most

all

of

frontal attack

freedoms break down,

many

of buying what one
going where one wants,
what one wants, trading
where one wants, and the greatest
of all, the sanctity of human life.

legislature.
In

Paul C.

B. C.

White,

Treasury wrote in 1945: "The gold
standard
has
repeatedly broken

vast

A final far reach¬

to

a

monetary mecha¬
gold is liberty.
If I

me

the

conform

denial of all rights of legis¬

a

dividual liberty.

formerly

defenses

such

have

we

take

to

the people
of law is not

of

JOSE, Calif.—Paul Ru¬
dolph has become associated with

built

entrust

money

monetary
give the

without due process of law.
The late Harry Dexter

such

purely

knowledge, and in the integ¬
rity and in the judgment of the
to

in

an

the

them.

freedom

individual, take refuge
for my store of wealth, insignifi¬
cant as it is, in a given quantity
of gold,
and have free disposal
thereof, I have a safeguard against
being dispossessed of my means
can, as

must have sufficient confidence in

power to

only

latures but

that

a

would

47

better

more

managers

Mr. Chairman,
belief

no

management

who,

must

the,

that

without due process

,

confess,

have

monetary

managers.

is

I

for
the purposes of the end in view.
It must not be prostituted towards
any other purpose.
A fourth im¬
plication is that the community
po\yer

used

must

that

aged somebody must do the man¬
aging. From this follows the im¬
plication
that
sufficient
power
must

right of managed

me

that

be

to

pressure

the

on

however,

is,

cation of such transcendental im¬

to

seems

ensure

anism

preciate this.

in

value

system

a

countervailing

up

is all to the good of the
He
can
settle
his
past

forces it

debts

as/this

long

as

without

of

increases.

currency

Now

volume

the

as

It

the divine right of property own¬
ers."
Must we now by consent

There

maximum

its

Kings that revolution substituted

Monetary Management

using

to

terprise and Authoritarianism and
would carry us too far afield this

faced.

My analysis thus far has dealt
with money as an instrument of
production and as a component

thread in
is that

money,

(1435)

afternoon.

ex¬

It is not a store of value.
only a representative
of

is

fair question which must

a

be squarely

of

measure

change.
It

It is

performs

medium of

a

The Commercial and Financial Chronicle

.

functions

real

It is not

vaiue.

It

money.

the

.

MATERIALS

Progress Through Modern Research

48

The Commercial and Financial Chronicle

(1436)

those of Roosevelt

Continued jrom first page

TFy_

[Ag

k

It

See

e

determines the

direction.

cause of such changes
accordingly, be sought elsewhere.

must,

describes

world. And since

the

of

work

shock

on

much of all this seemed to be

so-called

the

sonality, the

so

Eisenhower

"charm"

of his misfortune brought

news

a

or

per¬

definite

these accounts.
the

But

question remains, of course, whether some
other man in Republican ranks could not carry on, or
whether' some leader in the Democratic party whose
record

is

greatly different from that of General Eisen¬
where a Republican Administra¬
tion leaves off. The apparent friendliness of the present
Administration, the competence of its staff members, and
the apparent progress made abroad seem to have been im¬
portant factors in the greatly improved business situation
and in the persistent strength that the stock market has
exhibited during the past two years. They have not been
the only factors, but they have been important factors. If
new hands are to go to the helm early in 1957, it is, ac¬
cordingly of more than minor importance that they be
able to command comparable confidence in the business
community.

hower could not take up

inquiring mind goes further and
more
deeply into the situation, the truth soon emerges
that the legislative program, and for that matter the ad¬
ministrative acts (apart from improved efficiency and
some cleaning up) of the Eisenhower Administration have
not been radically different from those of the Administra¬
tion which preceded it. A major piece of work was under¬
taken and brought to completion in the field of taxation.
Credit is to be given for this accomplishment, but the fact
remains that the essentially New Deal concept of placing
the lion's share of the burden upon business and upon
wealthy individuals, leaving the great rank and file rela¬
tively untouched at least so far as direct and easily visible
taxes are concerned, is about as fully exemplified in the
present statute as in rftost of those that had preceded it for
If,

the

however,

several decades past.

It

under

a

tion.
are

all intact, and no

suggestion has been heard in Administration circles that
granted. They have already done un¬
told damage to an essential branch of American business,
and in consequence to American business in general.

relief from them be

There has been

a
very moderate change in the farm sub¬
sidy system inherited by this Administration. It did not
go half far enough, and now with an election coming up

there is

a

discernible

refrain. It is
its

tendency to wince and relent and

quite unclear whether this Administration in

present term will go so far

Democratically
largesse,

sors

a

new

or

to revert to the older

inexcusable

system

of

would go farther in this

Democratic

in 1957. In any event,

hower

and

whether it will

or

direction than
over

designed

as

Administration

taking

the farm program of the Eisen¬

regime differs from that of his immediate predeces¬

in

Act, which is only a disclosure
and require that securi¬

statute,
ties

cannot

be

without the prior

pose

of this,

is

might continue, but nothing is to be gained
by laboring the point. This Administration has been just
about

much New Deal

as

Administration itself

was.

or

Fair Deal

as

the Fair Deal

It has instituted

a

number of

and

New Deal

or

improvements, but it is still essentially
Fair Deal program

a

that it has evolved, Pos-

chance

and

of

a

little




more toward

the middle of the road than

other things,

among

The Securities

success.

to

conduct

would

regulate

and

sell

the

ethics

those

of

securities.

de¬

was

business
who

State

laws,

through their licensing of dealers
and

salesmen,
funds

tual

designed to

are

complish the

same

ac¬

Mu¬

purpose.

strictly regulated
both by the Federal Government
are

laws.

state

and

ticular

In

1939

is

the

the

State

its

assets

the

of

any

"(9).

Sales literature must meet

approval

the

of

the

cooperation

Association
SEC

of

issuers

of

of

Dealers,

is

policy'

under

1933

known

whereby

would

the

deter¬

held

is

if it includes

Investment

1940.

to

an

Securities

the

and

Company Act of
erature

National

types of sales literature

forbidden
Act

what

dealers

and

mine the

the

Securities

'statement

as

of

established

With

SEC.

be

Sales lit¬

'misleading'

untrue

statement

is

which

computed
re¬

calculated.

It

policy
gives other perti¬
provided by law.

as

be

strict

that

seen

of

funds

regulation

Government

the

in

mutual

the

by

to

protect

purchaser."

of

I

Concern

Regulation

don't feel it

you

,

,

Annuities—A

Securities

hope

was pre¬

sumptuous to go into such detail

concerning
with

corporation.
the

is

Variable

A

than 5%

more

securities

in

thus

Federal

fund

corporation.

any

fund cannot invest
of

A

a

It

investment

matter

there

than 10% of the

more

of

securities

will

whole

firm.

accounting

cannot hold

public from the

Exchange Act of 1934

signed

securities

which

you

familiar

as

regulations,
undoubtedly

are

I.

as

However, when

consider that insurance

you

panies

selling

interest

a

annuity

might

from

of

all

com¬

stock

common

in the form of

variable

be

well

these

a

exempt

regulations, the

of the securities adminis¬

concern

and

trators

pearing
variable

opposition

annuity

Hampshire

ap¬

the

to

bill

in

New

becomes

The

parent.

for

reasons

my

in

readily ap¬
in Niew Hamp¬

bill

shire and bills introduced in
tain

other

states

cer¬

do

of New

not, within
themselves, contain the provisions-

lations known

for

of

material

a

fact

if

or

it

omits

Hampshire adopted regu¬ to state a material fact pertaining
as the Q-3 Regula- "
to the shares offered a purchaser.
tions, dealing entirely with the Sales literature would be con¬
regulation of mutual funds. The strued to be
misleading if there
following year, the Federal Gov¬ is
any implication that an investor
ernment

the

the

enacted

Act

Company

of

Investment

1940.

in

of

Many

provisions of the '40 Act

contained

were

regulations

our

adopted in 1939.
I think you

will be interested in

the comments concerning the reg¬
of

ulation

investment

companies

and the protection afforded to the

public made by Mr. Lavita, Actu¬
ary
of the Maryland Insurance
Department, in a recent address
before the Zone

National

2

meeting of the
of Insurance

Association

Commissioners.

especially

His comments

interesting

not

connected

the

regulation

in

he is
with

since

any

of

are

way

securities,

but

deals entirely with insurance mat¬
Here is what Mr. Lavita had

ters.
to

this subject:

on

say

"The

Act

that

funds

vestment

the

in

Company Act of

the

by

National

Investment

will receive
turn

or

While

1940).

Association

Companies

of

the

and

National

Association

Dealers,

Those organizations have

of Securities

in every way cooperated with

specified rate of

a

stable

a

it

re¬

liberal return.

or

emphasize the ad¬

may

vantages of diversification of in¬
vestments in its literature, it must
ket

inherent

risks

ment.

In

the

of

stating

in

the

redemption

invest¬

the

advantages

of

features

a

shares

greater
costs.

redemption

be

to

redeemed

less

or

literature

Its

be

that he
is

he

receives

and

periodically gets what he
to, in the purchasing

entitled

"(8)

Now

shares.

government

It must exercise care
comparisons between

investment

in

other

in

'performance
be

invest¬

securities.

The

chart

must

record'

prepared that no misleading
may
arise.
In
fact,

so

references

there

is

actual

an

worked

out

as

standard

chart

result of confer¬

a

between the National Asso¬

ences

ciation

Dealers

and

SEC, which chart is used by

mu¬

of

Securities

for

the

It

salient

features

requires

that

funds

Full

in

a

Act.

register

there is

the

nature

policy of

a

be

to

policies

of

change

any

the

investment

cost

must

invest¬

shares

total

a

is

Unless the fund

getting-

"

the

following

'There is

in

For

other

material

the

lan¬

the

sales

The

issuance

of

It

for

assets

Portfolio
in

minimum of $100,000

loan

each

of

$1

securities

custody of

ing

cannot

unless

of

has

$3

such

must

in

loan.

be

held

information,

ants

any

see

way

the

another, the lit¬

include

must

the

follow¬

This

to

con¬

is arrived at by reason

annuity

the

plans to

of

sale of

se¬

curities which must be made

un¬

der various Federal and state bltie-

laws

sky

effect
be

to

the

such

deprive

The-'

regulations.

and

of

would

legislation

large segment of

a

investing

public in variable
annuity plans of the safeguards;
imposed on the securities industry
for the

protection of its investors.

In view of the above, the commit¬

tee

feels

that

would

it

be

sioners and the National

inop¬

Associa¬

tion of Securities Administrators."
Dual

Aspect

the

of

Variable

I

believe

that

cooperation

of

be

to

are

and

is

dual

annuity.
variable
vised

securities

insurance

permitted to sell

annunities.

the

the

between

necessary

This

of

aspect

It

is

will

de¬

vari¬

because

variable

a

well

may

annuities

be
be

that

super¬

by both the Securities

Insurance Departments.

'Switching from the securities
one

other,
an

investment company to an¬

class of security
investment company to an¬
or

from

one

other, involves
each
of

such

which,

sales charge on
for details

a

transaction,

the prospectus. The
prospective
purchaser
should
measure
these costs against the
claimed advantage of the switch.'
"When
offer

of

see

a

salesman

shares

to

a

makes

In

and
in¬

an

buyer, he must provide him with
the

must

be

stockholders
use

of

must
a par¬

piece of literature furnished
by the fund known as a 'prospec¬
tus.'
This
prospectus
contains
many

of the facts which the

tual fund

eral

has furnished

Government

under

formal letter from
of

the

SEC

to

staff member

a

the

of

proponents

variable

annuity
legislation
in
New York State, it was indicated
that
of

even

the

der

the

the

control

might
and

Insurance

operations
to

though certain aspects

operation

the

might

laws

come

un¬

regulation of

Department,
its
also be subject

administered

by

the

an

prospective

audit¬

reports

by vote, the

the investor to switch

share¬

semi-annually) must
by independent account¬

and

approve

public.

the basic similarity of the variable-

able
in

to

made at least

be made

clusion

detrimental

very

partments if insurance companies

and

The

reports

(which

for

contract

it

bank.

a

official

be

investing

administrators

literature

fund to

one

erature

of

assets.

the

by

could

statutes

state

thereof

prospectus.'

"If

to approval

senior securities is prohibited. Be¬
fore offer shares of a mutual fund

bank

to

prove

provided

safeguards
and

offering
of this com¬

details

pany.

of

a

legal

sales charge to the

a

included

price of the shares

shareholders. Unless ap¬
by SEC, transactions be¬

a

of variable-

sale

"

subject

prohibited.

1955,

legis¬
permit the-

Annuity

investor

tween Mutual Funds and directors
are

the

and

guage:

ing language:

the

issuance

11,

proposed

would

the load, the literature

or

contain

ity of the directors.

proved

which

Association of Insurance Commis¬

of

from

by

May

on

when the redemp¬

value

encourages

are

York

considering

his

his

terminates

Investment bankers, etc., can¬
not constitute more than a minor¬

contracts

Se¬

tion

he

receive approval of the sharehold¬

Management

of

ment program

if

loss

fund, such change must

ers.

of

Committee

Association

portune for any state to approve
such
enabling legislation before
exhaustive study by the National

Exchange

information

of the

incur

may

in

are

the

be furnished the sharehold¬
If

ers.

he

Here
of

with regard to investment
must

that

fact

states in its literature the

with the Securities and

Commission.

the

to

Investment

Company Act of 1940.
few

use

investor's attention must be called

less than the cost.

*

New

insurance

bonds, etc.
in making

'dollar averaging,' the

what

in

life

expression

know

National

curities Administrators, assembled

Federal

in

Even in the

he

the

of

and

shares-

meeting

a

is of the opinion that the absence

investment

funds

At

state

cannot

or

fund

mutual

Executive

is

as

and

respect to the

adopted:

was

"The

fund

safe

public-

state

annuities by insurance companies,

tual funds.

possible in order that

ment

that the investment in the mutual
as

of

the

in

actual

the

than

the

of
may

with

NASA held in New York in May
of this year the following state¬

lation

the

way

purchase

the

at

contained

laws

of the Executive Committee of the

after

value

of

protection

are

and other securities.

fund, it must also point out that

Securities and Exchange Commis¬
sion in protecting the investor in
every

the

which

Federal

also point out that there are mar¬

ment

affects
third" (In¬

directly

"Interested industry is represented

■

sibly, it is

state

sale of unduly speculative securi¬
ties of companies which have little

holders

reforms

the

approval of the

protect the

to

in

so we

in

sol4

Securities Commissioner. The pur¬

must have

degree only.

And

It

Aie Not in Public Interest

of mutual fund

The burdensome securities acts

value

states

of the fund and

Wly "Variable Annuities"
'33

in

manner

value

asset

nent material

mutual

Republican regime and with the bless¬
ing of a Republican President that the so-called social se¬
curity laws were extensively revised to add many billions
to the future burdens of the taxpayers of the country—
and to add to rather than substract from the degree of
paternalism inherent in all the other similar so-called
social legislation of the past quarter of a century. Presi¬
dent Eisenhower has had a number of things to say about
the "creeping socialistn" embodied in such programs as
that of the TVA, but all these projects are still in opera¬
was

the

net

also

7

page

gives

also the load and how the

demption

from

and

>

fi¬

and

peace

Continued

the

names

respective

the

made

ness

connections

their

financial statement of the fund.

have occurred

as

It

and

nancial

of business and the trend of busi¬

course

law.

officers

Certainly, if logic

thinking, the

ness

progress in improving the prospect for enduring
throughout the world, or at least among the major
powers. The specter of another world war, this time an
atomic war, so-called, is much less vivid to many minds.
Of course, he gained immeasurably by succeeding in
bringing the war in Korea to an end, or at the very least,
to a prolonged, possibly indefinite armistice. It is also ob¬
vious that the gain elsewhere remains as of this date
largely in the realm of attitudes and frames of mind—
and hope—but the course of these affairs have made a
deep impression upon many, if not most, men in the busi¬

same

Thursday, October 6, 1955

..

visions of the

Truman, but it is still traveling the

or

the

road and in

same

.

Securities and Exchange Commis¬
sion.

Certainly

able

annuity

any

proposed vari¬

legislation

should

contain the protective features
the securities laws and should

of
re¬

mu¬

the Fed¬

quire the delivery of

the pro¬

the pertinent provisions of the In-

a

prospectus,

Volume 182

Number 5470

..

.

The Commercial and Financial Chronicle

vestment

Company- Act- of' 1940 Continued

and

securities

state

with these

problems.

Because
variable

laws

of

the

question

nature

of

is

a

whether

Labor Union
of

insurance agents should
be permitted to sell both variable
annuities

Behind

I

believe

the

insur¬
of

use

the

President

forces

state

a

of

the

them

upon

the

United

States.

the

armed

stand

the

of

and

states

the

and

na¬

word
"annuity" should not be tion. It is the duty of these forces
permitted because of its connota¬ to preserve the people of the
tion

of

fixed-dollar

guarantee

which the public associated with
this term. Mr. Lavita, who in his
address

talking from an insur¬
standpoint, raised a number
was

United
not

States

their

and

liberties

only from foreign aggression,

but

also

and

anarchy.

There

from

domestic

violence

1946

was once

ions furnished

to

excuses

for

crimi¬

May, 1947, common stock nal conduct which would
disap¬
prices declined 23%, while the
pear when, a genuine balance of
cost of living increased 19%.
In economic
power made collective
the three-year period, May, 1946
bargaining a two-sided business.
through June, 1949, common stock
Unfortunately, we have seen, as
prices declined 24% and the cost collective bargaining has grown
of living rose 29%. It is for this
so one-sided as now to be collec¬
that

reason

mutual

fund

litera¬

tive coercion, labor unions insist
on
retaining and using the sup¬
required to point out plemental
weapon
of
personal
that the cost of living and com¬ violence
to
enforce
their
de¬
mon
stock prices at times have mands.

ture, in talking about the cost of

living,

gone
3&ou

is

Without disregarding a long line
in opposite directions. When
consider that annuity pay¬ of extensive and vicious uses of
consist

ments

primarily of a re¬
turn of
principal and that the
amount of payments will depend
upon common stock prices, these
figures point out the - necessity

criminal

that the public have all the safe¬

ported.

force, let me refer to
three recent examples, no one of
which carried with it any possible
union

demands

protection is
vestment

to

needed

dealers

Certainly

if

needed

one

in

leave

in¬

dishonest.

are

were

dynamited

burned, in¬

and

assaulted

were

servative

Many Join H. L. Robbins
(Special to The Financial Chronicle)

BOSTON, Mass.—A. Harry Cap-

Ian,

Richard F. Canton, John J.
Coveney, Aaron Dangel, Harry N.
Kaplan, Hyman B. Pave, John R.
Pickering, Ralph Radio, Louis P.
Schultz
and
Evelyn R. Sessler
have joined the staff of H. L. Robbins & Co., Inc., of Worcester. All
were
formerly
with
John
G.
Sessler & Co.

and

railway

intimidated

been

so

been

impossible

that

it

deliver

to

has
sup¬

plies
needed
by
the
Kohler
Company not only through Sheyboygan, but also through the large
port of Milwaukee, Wisconsin.
where

incredible, in

men

are

sent

a

country

to jail

con¬

stantly for street fighting, or steal¬
ing, or destroying propertv. that
Securities Co. has been formed
great, so-called "respectable" or¬
with offices at 1010 Vermont Ave¬
ganizations of labor are permitted
nue, N. W.
Officers are B. Le- to
carry forward openly campaigns
land Tanner, President; Herbert of violence and terrorism to
sup¬
Wechslef, Vice-President; Lillian port themselves in exercising an
Oser, Secretary; Bernard Lubcher, economic
power
which,
even
WASHINGTON, D. C.—Cavalier

Treasurer.

without

accompanying violence, is

great as to make collective bar¬
gaining almost a mockery.

so

Harold E. Aul
Harold

E.

Urgent Needs for Legal Action

Aul, 58, of George¬
a leading figure in
the investment company industry,

to Restrain Compulsory Unionism

died

need to

town, Conn.,

pital,
rent

Oct.

1

New

at

St.

York,

illness

Vincent's Hos¬

after

from

recur¬

a

which

he

had

suffered during recent months.
Mr. Aul since 1942 had been

Vice-President

in

Turning aside from the obvious
prevent labor unions from
increasing their monopoly power
through wholesale and wilful vio¬
lations of the criminal law, let
call

me

attention

to

two

urgent

charge of in¬
legal action to restrain
vestment management of Calvin this growing despotic power. First,
Bullock, Ltd., New York, and his is a legal restraint on compulsory
connection with the firm dated unionism. Second, is a clear, en¬
since 1934. Currently he was one forceable limitation on the
ex¬
of the firm's three executive Vice- emption of the unions from the
Presidents.
investment
1920.

affiliation

banking

Previously

Assistant

of

Corp.
a

and

privately

with

dated

had

been

of

American

Vice-Presi¬
owned

vestment company.




in¬

for

Sherman Anti-Trust

from

he

Treasurer

Republics
dent

His

needs

In

has

earlier

times there

defense under

for

a

an evil
into vast size
in recent years.

grown

consequence

some

was

some

circumstances

union demand for

a

pre¬

But as the unions

in size
bargaining

grew

their

extended

and

employers to regional
groups and ultimately to all the
substantial employers in an indus¬

from single

try, the establishment of a union
closed
shop began to invest a

entirely

too
much coercive power
over,
not
only a regional group of employ¬
ers, but over an entire industry.
Thus, as we moved into the era
of national strikes, with the pa¬
with

union

strong

ralysis of entire industries doing
infinite harm, it became evident
that the closed shop was such a
that

menace

could

it

longer

no

be tolerated.

the pre¬

In this situation arose

with

compromise

a

is called the

union shop.

good feature of the
union shop is that an employer
is permitted to seek
employees
only

outside

the

of

ranks

union

of

But the vital wrong in

members.

such
employee must,

the union shop is that under

contract

a

every

willy-nilly,
a

become

remain

and

member of the union after he is

This
means
liberty-loving

employed.
countless
who

for

not

do

to

want

join

compelled to do
earn a
living.

so

The stock union

the

union

or

reason

one

a

in

that
persons

another

union

are

order

to

argument, that

represents all the em¬

works for their benefit
supported by them,

ployees,

and should be

is

travesty upon individual lib¬
erty.
The unions impose upon
a

their

and
host
of
obligations
to
support
the
union
policies
and
activities
which go far beyond the narrow
field
of
bargaining over wages
and working conditions.
members,

assessments and

unions

The

by
dues
otherwise,

have

a

become

the

political
spokesmen
for
their
members, and, despite minor legal
limitations, they are able to use
the
funds
contributed
by their
members to support public pol¬
social
and political
pro¬
and
propaganda,
with
a large part of their mem¬

icies,
grams
which

bership
It is

entirely disagree.

may
an

outrage that an Ameri¬
should be compelled

closed

state

laws.

of

the

Heretofore

greatly servo, the Ameri¬
people to reduce the menace
foreign aggression as well as
to halt the spread of intolerable

can

of

domestic lawlessness.

Chase Manhattan Bank
Makes

the Anti-Trust Acts

the

under

anti-trust

has

aets

The remedy for this evil
is clearly that pointed out in the
Supreme Court opinion to which

grown.

I

referred.

of

the

limitation

definite

A

of

exemption

unions

should

labor
enacted
by

be

the

James

All that is necessary is to

plain terms
the

what

a new

federal

write
definition of

law

means

in

exempting labor unions from the
anti-trust
acts
when
"lawfully
carrying out the legitimate ob¬

jects" thereof.
If

had the

I

law,

drafting of such a
define the word

should

I

"lawfully" to include only peace¬
not

ful, orderly activities, but
"any uses of fraud, force,
lence

intimidation

or

spiracy

violate

to

enforcement

United

of

States

or

any

of

or

or

any

vio¬
con¬

to prevent
law of the
one

of

the

several states."
In

the

addition, in order to release
placed on the fed¬

shackles

Irvine

M.

been ap¬

has

pointed Vice-President in charge
Manhattan

Chase

the

of

Bank's

Garfield Branch, Fifth Avenue at
23rd

Street,

Baker,
Mr. Irvine,

Stewart

J.

President, announced.
who

has

staff

at

served

the

on

official

branches

various

of

the

bank, has been with the bank for

!.

than 41 years.

more

Congress.
in

Appointments

I

explained
how
improper exemption of labor
organizations from prosecutions,

-49

would

the

,

appointments at the head
office were: Norwell F. Burgess
New

R. Kardashian, Assist¬
Vice-Presidents; Nicholas J.
Santora, Assistant Treasurer; Wil¬
liam H. Adams, Wainwright Holt
and Henry R. Thiesing, Corporate
Trust Officers, and B. Lyle Apple-

and Gould

ant

ford, Jr. and John T. Shea, Assist¬
ant Staff Counsels.
In

New

John
and

York

branches,

City

B.

Dunlap, Robert L. Herd
Robert
Whytock were apr-

pointed Assistant Vice-Presidents
and John C. Donlin and Frank X.

Kissane, Assistant Treasurers. En¬
rique Real was appointed an As¬
sistant Manager at the
Panama
branch.

eral courts by federal statutes as

interpreted ;

by

there

Court,

vision in the
the

Clayton

the
Supreme
should be a pro¬
law that nothing in
Act or the Norris-

Ira

Haupt Offers

Servo Securities

Act should
restrict
Ira Haupt & Co. and associates
jurisdiction of a federal court yesterday, (Oct. 5) offered $600,to issue an injunction against a 000 6% convertible subordinated
labor organization, or its members debentures due Oct. 1, 1975 and
or
supporters,
against
conduct 110,000 shares of common stock of
which is found to be not "law¬ Servo Corp. of America. The de¬
fully carrying out the legitimate bentures are priced at 100% and
objects" of such an organization. the common stock at $5 per share.
Of the total common shares being
Of
course
nothing which has

Guardia

La

the

been suggested
in the way of
dealing with the growing labor
union
monopolies can be made
effective except through political

action which must be based

on

a

offered, 80,000 are being sold foF
the company and 30,000 shares for
the account of a selling stock¬
holder.

The debentures will be convert¬

ible into common stock at prices
of the
from
$6 per common
social
value of and the public ranging
share on or before Oct. 1, 1959 to
service rendered by labor unions.
$9 per share after Oct. 1, 1971 to
There
has
grown
up
in this
maturity. The debentures will be
country
an
enormous
body of redeemable at prices descending
public
opinion
which,
despite from 105% to par. Sinking fund
their many abuses of power, al¬
redemptions
will
be
made
at
ways
comes
to the support of
prices from 104% to par.
labor unions in critical conflicts.
Proceeds to be received by the
These unions are rightly regarded
company from the sale of the de¬
as
institutions whieh can be fos¬
bentures and the 80,000 shares of

re-appraisal

widespread

tered

to

have

been

purposes.

terrifying

thousands of pages

revelations in
of

worthy

serve

there

But

regarding the evils
perpetrated by many unions un¬
der criminal, subversive or reck¬
less leadership.
Certainly no one
testimony

official records of

read these

can

organized crime, extortion and
disloyalty without realizing that
legal prevention and restraint of
the growth and inevitable abuse
of such private powers are
ur¬
gently needed.
of

leaders

The

organized labor

ambitious human beings. They

are

will

stock

common

will

be

far

used

relocation and consolida¬
tion, expansion of equipment, in¬
creased
development
and
re¬
search, development and distribu¬
tion of civilian products, and for
additional working capital.
Servo Corp. of America is en¬
gaged principally in the business
of manufacturing various items of
electronic automation equipment,
automation testing equipment and
radio communication and naviga¬
plant

tion instruments.

The

has also continued its

company
emphasis on

engineering and research services
and today maintains a relatively

ganization to whose policies and
programs he is opposed.
It is an
outrage
that
a
free
American
should be compelled to join and
to support and to submit to the
discipline of any private organ¬

voluntarily
abandon
of public influence and large staff of highly skilled en¬
private profit that grow greater gineering and technical special¬
ists.
every
day.
They will continue
Other members of the under¬
to
expand
their
powers
until
their abuse and their menace to writing group include: Francis I.
duPont & Co.; Johnston, Lemon &
the
public welfare become
so
great that something in the na¬ Co.; Shearson, Hammill & Co.;
Walston & Co.; Clayton Securities
ture of a
revolutionary struggle

ization to which he does not wish

will

to

American

can

citizen

to be

member of

a

a

political

or¬

belong. The United States Con¬

stitution and the Constitutions of
all

the

States

carry with
them
of civil rights which
are
flagrantly violated by com¬
pulsory unionism.

guarantees

There
forbid

are

all

unions.
contract

forms

of

compulsory

Although the union shop
is

tolerated

in

the Taft-

Act, there is a saving
permitting the enforcement
these contrary state laws.

clause
of

One of the

major drives of the
unions today is to repeal and to
stop the extension of these state
laws. It should be a vital part of

not

powers

be

ination

to

necessary

people

of

the

relieve the
the dom¬

from
latest

Corp., and Warren W. York & Co.,
Inc.

autocracy

R. A. Fay

which threatens

internally to de¬
constitutional form of
government
and
our
constitu¬

stroy

our

tional

today 18 states which

Hartley

Law.

Compulsory unionism is
which
and

with the

vailing labor managers.

and

method

dealing
growing labor union
which is obvious and

Labor and

an

closed shop contract

unions.

strike against the
Kohler
Company in Wisconsin,
the CIO people have been guilty
of every sort of terrorism, result¬
ing in the death of at least one
man, wholesale injuries to others,
and much destruction of property.
In addition, city authorities have
long

a

It seems

Form Cavalier Sees.

with

The

dividuals

In

entirely unionized
force, and would have protection
against competing unions or mi¬
nority factions, if he made
a
tions

of what

is homes terrorized, in aid of a strike
case, it is needed maintained by the so-called con¬

in the other.

an

sup¬

were

protection

the

employer sometimes to feel
that he would have better rela¬
for

principle in the acceptance

any

because

non-

not unreasonable

was

sound

and frequency which made absurd
im¬ the protests of union officials that
pression with you that this protec¬ they did not condone such wrong¬
tion is necessary because insurance doing.
companies may be dishonest, any
In a strike against the Louis¬
more than I would
say that the ville-Nashville
Railroad, bridges

want

with

competition

of

forms.

don't

mediate

tense

guards and information in pur¬
In a strike against the Southern
chasing variable annuities that Telephone Company, property was
they now enjoy in purchasing damaged extensively and individ¬
common
stock interests in otljer uals assaulted with a recknessness
I

having obtained recognition and a
contract
with
an
employer, to
wish to insure itself against im¬

with

justification for the crimes
which

shop. Unions were struggling un¬
handicaps and against an
employer bargaining power which
heavily outweighed their own. It
was not unreasonable for a union,

der legal

pro¬

compulsory unionism

one

monopoly
practical.

Monopolies?

unionists. It

hope that, when
of these questions with respect to the labor organizations obtained
greater strength in numbers and
variable annuity contracts, and a
better legal protection for their
great many more dealing pri¬
legitimate activities, they would
marily with insurance problems.
cease to use organized violence to
We
all
know
that
common
accomplish their ends. It was the
stocks do provide a hedge against
belief of many friends of labor,
inflation and a protection against
such as myself, that the legal and
loss of purchasing power.
Howeconomic disadvantages of the un¬
over, in the one-year period, May,

ance

is

with

ernor

regular life

federal

both

the

extend

to

of

This

not in¬

or

agents should
also
be
licensed under the securities laws
before selling such annuities and

ance.

citizens

in

How Shall We Deal With

surance

and

political thinking of all Amer¬

ican

hibition

there

to whether

as

the

15

page

dealing

•

dual

annuities,

ft dm

(1437)

liberties.

would

It

be

far

better

for

the

people to begin today
away
from the labor
unions the special privileges and
despotic powers which are un¬
dermining our industrial health,
while this can still be done with¬
out

rities

Calif.

—

Rich¬

Fay is conducting a secu¬
business
from
offices at

5757 Franklin Avenue.

take

a

conflict

approaching the in¬

tensity and cruelty of a civil war.
Such a political struggle would
hp

LOS ANGELES,
ard A.

American

to

Opens

(Special to The Financial Chronicle)

a

hitlpr

hattle

but

one

which

Hansen Co. Formed

E. H.

(Special to The Financial Chronicle)

WHITTIER, Calif. — Elmer H.
engaging in a securities

Hansen is

business from offices at 104

Bright
nnmp

Avenue
nf

E_

H.

under
Hanseh

the
&

South

firm

Co.

•

'

♦

'■

|

«

50

The Commercial and Financial Chronicle

(1438)

from

tration has brought to an end the
war in Korea, a war which sapped

5

page

The Immediate Outlook
For the
available

are

the

on

terms

same

work

double A's.

as

that

The tendency of

out

tactics
in

might
the

not

future.

investors in a
rapidly rising bond market to
lower
quality
requirements
in
order to build up yield is familiar

of course, that
if the money market conditions
of the past year were to be con¬

to

couldn't

all.

us

market

In

the

current

bond

was,

tinued, then the price of
be

expected to

Now

with

the

am

not so

money

ease

that

relearning
another forgotten lesson,
namely,

much.

that the quality curve also flattens
out when the demand for cash is

day a quick return to easy money
doesn't appear as remote as it did
last week. At this point I should

we

are

and

great

now

sellers

become

more

ket sell-off I

like to review

aggressive than buyers.

present
Call Loan

Situation

stock

mar¬

To¬

sure.

aspects of the
market and the

some

money

general economy.

those of

The Money Market and the

have,

cident which

featured

was

in

financial press last month.
the rediscount rates were

the

it

in

What takes place

vacuum.

a

the

is

people.

with

popular

and

also been successful in

ternational

As

has

war

hds

easing in¬

elsewhere

tensions

the world.
of

many

Administration

This

in

result, the danger

a

receded

there

and

is

abiding faith that war can be
Naturally, the elimina¬

an

avoided.

have

to

such
in

lull

a

this

convinced

are

of confidence

measure

Administration
it

istration,

by prompt and
think

I

has

fact.

this

solid

a

This

Admin¬

domestic

a

as

if

decline'in

any

confidence
in

they

will

and

can,

action.

foundation

that

counter¬

the

bank

prime
up,

rates

lead¬

one

ing

loans.

Apparently, to
financial writers, as

present-day
well
of

to the younger
generation

as

investment men, when

calls its call

loans, it's

bank

a

Now, my earliest training in the
financial field was in the
negotia¬
tion

and

placement of call loans
time loans. In
fact, that was
the field in which our
present in¬
vestment
banking firm of
and

Salo¬

Bros. & Hutzler got its start.

mon

In

those

right

up

days, and, as I recall,
into the depression, call¬

ing call loans
ter.

It

routine mat¬

a

certainly wasn't regarded
Of course, with the
onset

as news.

of

was

the

depression,

slowed down to

everything
walk, including

a

the securities markets and
the call
loan market. And we all
became

accustomed to
the
dragging
economic pace of those
years that
ever since we have
tended to re¬
so

gard it

normal.

as

This little incident of
call loans
being regarded
line news

serves to

the economic

great

of

head¬

as

illustrate how

deeply implanted in
the

call

a

our

thinking

thought patterns of

depression

still

remain

today.

Treasury,

of

balance is

quickened

tempo

events,

what

the

for

economic

longer

be

sticks

of

economic

they

define

norms

valid

should

may

economic

our

as

to

sure

and even

monetary

yard¬

present

high

level

economy be able to maintain
its pace.
To

apply
this
thought
cretely, let me review some
recent

con¬

very

money
market
history.
Back in 1953, when
interest rates

suddenly

rose

investment

very

sharply, some
a
long term

with

men

trading turn of mind passed
up
high-grade issues then coming

the
to

market

coupons

with

and,

seasoned

3%%

and

instead,

issues

3%%

purchased

with

2%%

and

3% coupons
selling at a consider¬
able
discount.
To
do

this,

course,

of
give

they

usually had to
points in yield.
They reasoned, however, that this
up

several

basis

investment tactic would
prove to
be cheap insurance
against future

refundings when
picture
it

changed

the interest rate

again,

and

that

would,

moreover,
eventually
result in a substantial
apprecia¬
tion in the
prices of bonds not
held

down

This

reasoning,

has

been

by nearby call prices.
as

amply

subsequent

you

all

borne

know,

out

by

money market events.

Now the question
of this year bond

respect

are

merciless

prompt,

unjustified criticism, the
authorities are usually

adopt anti-deflationary
measures,
but very reluctant to
quick

to

do

anything which might not only
drastically curb a boom but, in
the process, lead us into

in

business

decline

activity and employ¬

In the

ment.

past, whenever busi¬

activity

ness

a

in

today's bond mar¬
produce equally good results?

Prior
stock

to

last

market

Monday's
decline




my

.

nately, the

and

.

.

in

the securities

particular.

health

jarred

which

grave news

received last week-end

the

Unfortu¬

of

the

the

of

arch

confidence

at

its

this

market

was,

criticism

leveled

the

at

after

Board

business activity in

m

am

that

sure

heaped

with
on

all

the

of
.

decline

1937.

And

you

are

maledictions

the Board,

as

the Treasury, when, in

credit

Federal

the

well

as

1953, they

restrictive

meas¬

Denver

bears

witness

equilibrium
It

is

and

not

sound

a

surprising,

dollar.

the

to

ex¬

treme importance of this intan¬
gible but highly potent economic
call popular confidence.

we

all

pened

know

in

the

the

stock

what

hap¬
since
the

years

in

market

days since

has

came

into

what has happened in

power, and

the

become

the

last

President's
matter

a

few

health

of

You

market has
not

only

viduals

know

I

full

strength

favorable influence,

a

the spending of indi¬

on

but

enterprise

stock

that

on

well.

as

of

corporate

We know, too,
true. The

that the reverse is also

lessons of the depression, as I said
moment ago,

a

have not been for¬

gotten.

So,

along

strength

with

the

in

sustained

equity

markets

credit restraints very
cautiously/ tions are currently estimated to
be running at a rate 4%
Moreover, such restraining moves
higher
than

a

year

Moreover, this

ago.

1953, have been made with great
Consequently, in the light
of what we know of the
history

favorable

°/ .^.e aPPlication of credit

re¬

present

we

the result that by

may
of

a

measures,

believe

safely assume that any hint
slowdown in business activity

will

in

result

prompt

counter-measures to
ent

I

ease

financial
the pres¬

restraints.

their

ministration

will

had

the outstanding characteristic

country prior to the great
depression.
The
pioneer
spirit

which built

a

continental civiliza¬

wilderness has again come to
I believe the reasons for

at

least

in

part,

the following

on

considerations.

confidence

great

in

the

may

r

of

/nce. *s ius^frecb
foreign

\

affairs,

con-

In the field
this

Adminis¬

the volume of
to

con¬

nearly

In

has

been

has

great

and

which that
on

Wallace

~

^ce

~

the election

u? l°b* was

that

achieve

of

over

some

day

in

total

is

I'll

rise

may

the

Also

the

than

2V2

Now,

because

economic

condi¬

will be sustained.

If business ac¬
tivity is maintained at peak levels,
interest
rates
should, normally,
hold

at

present,

slightly
Bear in mind, how¬

higher, levels.

even

that two considerations will

ever,

continue
on

or

to operate to put a

ceiling
One is

further advances.

jany

the fear of upsetting the
economy,
and the behavior of the stock mar¬

ket

this week will certainly have
done little to ease this fear. Quite
the

contrary—it may have inten¬

rates

can,

eased

be

will

need

so

feel

and

The other is the political
fear of the ill effects of too great

increase in the cost of carrying

the

public

If

debt.y

constrained

no

to

one

curtail

activity simply for fear that credit
restrictive

will

measures

*nto

be

con-

declining economy.
That, roughly, is, I believe, the
reasoning followed by the con¬
a

tending schools of thought. Which
will prove to be correct, I won't

attempt to guarantee, for I make
claim to be

no

prophet. I'll leave

a

that to the slide rule

stand

my

across my

what

what

on

desk, and.

have

I

optimistic

boys.

I

until now,

uo

has

seen

I base
coming

see

made

me

the business outlook.

on

Popular confidence in the future,
however, is, under certain circum¬
stances, almost as fragile as it is
important

to

our

So

economy.

until I have had sufficient time to

activity should
slacken, then money rates would
normally be
expected
to
ease.
Right now, even if business activ¬
ity continues at fieak rates, money
rates

may

ease

seasonal

and

occurred

Here let

thought
for

believe

main

economic

the

I?m

.

Now,

the

to

as

for

authorities have been following a
credit restrictive policy. As a con¬

schools

the
is,

outlook

money
rates.
The demand for
credit is strong and the monetary

banks

sequence,

of

outlook

those

present

who

rate

of

activity

will continue,
higher next year,

re¬

by selling bonds at
the open market or by

in

loss

Banks.

serve

replenish

can

either

serves

borrowing from

That

that

judgment.

a

concerninjg

business:

days

Outlook for Money Rates

1953.

two

few

last

outline the conten¬

in
me

tions of the

the

of

rea¬

touching off a jet propelled price
markup in the bond market such
as

shocks

serve

extent of

psychological

hardljf to the

but

sons,

bit, anyway, for

a

a™?ue at a" informed judgment

of the effects on confidence of the

going to play it cautious and re¬

business

the Federal

Re¬

When

they elect the
course, however, they may
find that, if they have been ware¬
housing mortgages, or financing
latter

transactions

considered

not

eco¬

and those who believe that it will

nomically
sound
under present
conditions, their welcome at the

slow

discount

be

and

even

down, and,

lowed

by

perhaps, be fol¬
minor decline, some-

a

similar

wnat

occurred

in

tne

to

wnich

siumps

1948-49, and 1953-54.

the

as

window is

restrictive

mentioned.

the

restrained

as

policies I have

Here again,
the past

however,

of

events

week,

if

tney succeed in slowing down the
Those

who

maintain

economy,

that

the

will

also

change of

pace

and

rate of business activity will
be
higher in 1956 than in 1955 argue

the part of

that wages are

continue

a

increasing and that

further increase will take place
the
minimum wage
goes

The

ties.

from

75

cents

construction

to

dollar;

a

continues

at

level; that public works
taxes

will

be

that, in

year; and

nothing is

that

high

a

large;

are

lowered

next

election

an

yearr

done to interfere
prosperity. All this may be

with

ever

true, but, if our wave of optimism
begins to ebb as a result of recent

events,

if

hensive

business

and

grows

capital

appre¬

expenditures

are curtailed, much of this reason¬
ing will have to be revised. Those

who

that

argue

business

activity

may
ease off reason as follows:
Private indebtedness has increased
at

rate

a

tained

which

be

cannot

main¬

indefinitely; that the rapid

increase

in

debt

has

resulted

in

placing greater purchasing power
at the disposal of people than ever

do

Reserve

mand

exceed

for

total

the

goods will decline.

additional

cause

for

concern

de¬

sound

a

part

the

of

pent-up

demand

for

econ¬

a

by, economic

Thus

events.

far

this year policy has, of necessity,
been restrictive, but it has been

pursued

much

than in
bond
near

has

drastic.

as

future

the

hinges

cautiously

more

1953, and its effect

market

on

been

the

on

nowhere

In the immediate
for

money

or not

popular

demand

whether

confidence and business ootimism

survive the jolt they got from the
stock market decline. If they do,

the

demand

for

money will con¬
and, consequently,
will remain tight, and in¬
rates will trend upwards,

tinue

great,

money

terest

unless and until the monetary au¬

thorities decide that the high level
of business

threat

to

activity constitutes no

our

economic

equilib¬

rium and portends, not a boom

to

be followed by a bust, but is rather

Here

that

I

the

An- cies

is the

will

sound dollar, and it
presumed, is prepared' to
in any direction called for

move

bor-,

new

obviouslv.

a

be

should people decide to repay part* a normal concomitant of
of this debt, and should such re-' of economic expansion.

then,

»

on

everything in. its

maintain

and

omy
can

promote

direction

the monetary authori¬
Federal

to

power to

when

like

to

Reserve

consistent

observe

restrictive poli¬

present
the

of

while

should

an; era

authorities,
steady, are,

and

that

very
rfeason.
Therefore, there

not
are

con¬

bound

to be times when the market will

for

now,

example,

ease.

the

Right

Reserve

all goods and services has

Board must take into account the

been

fact

met

credit

is

volume

already
that, as consumer
already very large, the
and

of

may

not be
been

should

sales

heavy

great in 1956

as

this

public

rude

of

goods
as it

However,
confidence survive
year.

the

past

few

it

days, much of this pessimism

may

off,
be¬

probably

fast that

sified it.

public

part the question

But on

Jvjf score 1 can only say arise,
that,
economic
need

give the appearance of

distant

bank

of

been curtailed.

tures to maintain farm prices. This
school also contends that a large

mil-

more.1

still

availability

credit has

returns

beg off!

has

in

and

stant.

60

and the shock to
confidence which touched
least

Bank prime rates have

years.

risen

for

In the wake of the stock market

at

M

despite huge government expendi¬

million.

decline,

e h,£hest in more than

oa

continuing decline in farm income

employment

less

The Federal

redJ.seount rate today is

should

payment

65 million and the number

unemployed

rates have risen.

money

rowing,

l°ng-term goal

Today,

est

the most

our

which the American people would
iuture.

money is tight and
have declined. Inter¬

prices

Henry

President

proclaimed

argued

years

few

a

is

Thursday, October 6, 1955

.

painstaking and scientific public
opinion polls—so, on this question,

has

engendered
influence

remember that,
ex

present

Administration. I believe this

the end of Au¬

economy, with the result that we
nave
had the greatest peacetime
boom in our history.
Perhaps you

is

The people at
large, in spite of
political attacks, have developed

to
satisfy
desires, with

had risen

powerful

a

the fore.

spirit of confidence

mortgage

order
and

of optimism

wave

confidence

tion out of the vast North Ameri¬
can

maintained.

before, and this, in turn, has re¬
materially." sulted in more
spending than can
Popular confidence in this Ad¬
comfortably be maintained; that

the

of our

be

loans has also increased

was

which

to

"

addition, the vol¬
of mortgages, and commer¬
agricultural, and industrial

ume

the

achievement,

year,

billion.

generation, our people seem to
regained the confidence, and
to

in

needs

credit

sumer

of

have

future

gust, this
$32

psychology has caused

individuals

many

cial,

Now let's look at another angle
the matter.
During the past
few years, for the first time in a

do what

I

that

consumption
expenditures.
And
capital expenditures 'of corpora¬

strictive

to

have repeatedly done to

that

well

the

in

that this time the authorities have

?n«e uthe PreciPitous actions of

continue

The Business Outlook

and

sustained

therefore,

skill.

beneficial,
only one hon¬

That, in turn, involves a political
prediction. And you know as well
as

it

future,

so

that question—only
policies which created it

the

can

the

.

to

public

have come substantial increases in

proceeded with the application of

if

been

There is

answer

concern.

in order to maintain economic

ures

position,

the precipitous decline with which
it first greeted the bad news from

has

Reserve

not, in

was

or

which the Federal Reserve Board

subjected after the collapse of
commodity prices in the 1920's.
Many of you may remember the

not the

or

technically vulnerable

a

has

growing
keystone.

very

Regardless of whether
stock

we

concerning

President

present Administration

drastic

feeling

markets

You

desire for progress are based

ment tactics

general

in

adopted by the monetary authori¬
ties, they have been subjected to
severe criticism, not
only by poli¬
ticians, but by many bankers and
businessmen, as well. Some here
may recall the bitter criticism to

and

have gradually been rising.
would similar invest¬

This wave of confidence, natu¬
rally, has helped business activity

factor

was

est

an

were

renewed

sues,

taxes.

measures

restrictive

this

Therefore,

in

after

prices have been
steady downward pressure,
yields, especially on new is¬

and

tion

down

credit

turned

most

arises, for

under

ket

this

in

draw

adopted
no

Very heavy one, and

a

failures

any

I

the

Moreover,
since
the
maintaining economic

economy.

familiar

thought ought
light of the

in

very

over-all well being of

to

revised

and

now,

are

subordinated
to the
the national

properly,

I submit that such depres¬
sion-born habits of
be

not

developments,

burden

news!

result,

continue?

in

...

lion of call

and

being stepped

fiscal

have

of optimism

wave

faith

a

New York bank made the
headlines when it called
$20 mil¬

increased
were

being

popular

tions greatly influence conditions
favorable) in the money market, the outlook
for money rates will
impact on popular psychology.
depend, in
large measure, on how long the
Turning to the domestic field
I believe the people at large have
hign level of economic activity

bound

was

only of part to its accomplishments in the
but of eco¬ foreign field, has reduced Federal
nomic and political conditions as expenditures, and lowered taxes.
well.
The credit policies of the People are
looking forward, next
Federal Reserve authorities, and
year, to a further curtailment in
the debt management policies of expenditures and a further reduc¬

When

comes—will the

tion of the prospect of major hos¬
tilities in the foreseeable future

popular

The money market does not ex¬
ist in

particularly

appropriate

General Economy

greatly from
1930's, is a little in¬

the

human

huge

necessary, arrest
business activity

Still another indication that the
money markets of the 1950's
thus
far, differed

our coun¬

expenditures, and a war
which was not, to put it mildly,

well

so

involved

try,

such

My reasoning

which

of

resources

material

Money Market

was

and

the natural

Continued

.

prove

shocks

of

the

to be unwarranted.

Finally,

that

the

current

heavy de¬
partly seasonal

mand for funds is
in character and is
to

sound

the

time

vested

when

and

crops

processed.

Now

quires

money.

when

merchants

turers

due,"therefore,

economic need.

are

is

and

preparing

Now

are

This

the

is'

har¬
re¬

time

manufac¬

for

the

I

Volume

182

Number 5470

.

The Commercial and Financial Chronicle

.

.

(1439)
Christmas

quires

and

season,

credit.

It

this re¬
without

goes

saying that the Reserve
ities

will

needed

furnish

to

meet

author¬

the

reserves

these

necessary

they

and

more

other

ditional

touches

action

that

for

Reserve

yond the

chain

a

the

incentive

Banks

point

of

re¬

falters,

economy

provide

may

the

off

the

and

to

be¬

go

merely easing
However, such

money seasonally.
conjecture may be premature,

uncalled for. For the
present,

even

in

or

opinion,

my

unless

economic

decline

rates

likely to

are

firm,

and

drastic

in,

sets

a

rates

fairly
not

are

likely to show much change. This,
of course, means that bond
prices,

especially of short maturities, are
apt to stay at today's level rather
than to

move upward. - Long bond
prices may behave more bullishly.
However, I don't wish to imply,

in

any
that
a

shape,

manner,

form,
repetition of what hap¬
pened on the upside in long bonds
late

in

1953

is

at

all

or

likely under

existing

circumstances.

time

year

the

this
bond

the

At

no

sector

any

of

market, least of all the

Government
been

has

bond

sector,
ever
remotely chaotic. While

even

bond

market, as a whole, has
been relativelv thin, it has'also
been very orderly.
And even if
in

reversal

a

the

prices should

get

of

trend

bond

under way

this

year, I expect it would be orderly
and moderate.

frame

of

dealer
the

this

.

problem

reference

.

right

.

the

of

now

in,

the

bond

the crest of

present money market strin¬
mav
not
yet have been

gency

save

on

I

If

taxes

are

spend the ad¬

or

dollars

Collector

enue?

reclaimed

from

Internal

Rev¬

of

have

feeling that
expenditures
for

sumption

a

con¬

the

visible future will be pretty well
maintained and that, consequent¬

ly,

the

demand

services

will

for

be

goods

kept

at

and

high
this hinges

level.

a

Again, of course,
popular optimism and business

on

confidence.
a

Theoretically, there is
saturation point.
Actually, hu¬
needs and desires have

man

a

way

calendar

of

scheduled

bond

offerings is still building up. Nev¬
ertheless, and aside from the stock
market's behavior, the long-term
bond market seems to be showing
signs of being close to bottoming
out.

the

The

issues don't go out

new

window

first

the

on

day

of

with cash or credit, as
today, and may continue
coming election year.
is good reason to believe

are

to be in the

There

that

such

be

to

outlook

the

in

demand

will

continue

great, if fears for the

nomic

leased

do

not

nip

eco¬

them

substantial

still

may

brief

but

spurts

uoward.

Eventually,
however,
will probably taper off, if
because of seasonal influ¬

they
only

and, when they do, I think

ences

it

will

the

be

signal

in 1

provement

for

im¬

an

long-term

bond

year,

forecast

a

firm re¬
the probable

our

on

for, and supply of, longterm funds, which was the result
of

deliberations

taken

by

of

one

our

predicted
such

annually under¬
group of institutional

a

investment

officers

meeting with
partners. This forecast
that the demand for

funds would

their supply.
has

cast

lieve

the

the

of the year.
for

funds

excess

of

correct, and I be¬
to be as valid

prove

final

for

in

be

Thus far, this fore¬

been

it will

been

quarter
first

An

it

as

three

has

quarters

of demand

excess

supply is typical
of periods of economic expansion.
I
have already voiced my view
over

economy is launched on
of long-term economic
expansion, barring certain devel¬
opments.
If this is correct, and
the clouds hovering on the eco¬

already stated that I be¬
in an era of long-term

we are

economic

expansion, if popular
optimism and business confidence
be

can

ing

maintained.

sured

us

The

Cesses.

this

Tighten¬

have
against inflationary
rates

money

in¬

may

firming

of

ex-

rates,

if

thesis is correct,

won't of it¬
self stop the expansion.
But, on
the other hand, when money eases

again, it will certainly help quick¬
en the economic tempo, for, as pre¬
viously observed, an era of dy¬
namic economic expansion needs
huge amounts of credit, and, the
favorable

more

the

est, the faster the

rate

of inter¬

pace.

The High Demand for Capital
•

It

is

moot

a

question

in

my

mind, however, whether whatever
easing of funds may be in prospect
will be of sufficient magnitude to
meet all demands should the

high

rate of economic

I think most

activity continue.
of you will agree that

fade

away,
then
policies may
prove unable to do more than al¬
leviate a long-term upward trend

prudent

easy

money

in interest rates.
a

long ago, the

rate on

Not
long

publicly traded United
Treasury bonds was regard¬

term,
States

ed by many as sacrosanct.

Today,
although 3% is the going rate for
such

credit, the

still rises in
the east, and sets in the west, and
prosperity is at an all-time peace¬
time peak.
pends

not

it

so

sun

is

evident, de¬
much
on
minor

changes in the price of
on

services,

and

in

confi¬

popular

on

the future.

I

would

not

surprised if confidence in the

future

persisting,
the
price of
money gradually continues to ad¬
vance.
As a matter of fact, such
an
advance might be one way of
helping
to
stimulate
voluntary
savings, and so aid in bringing
about

balance

a

the

in

equation

supoly

for

demand-

long-term

funds.

will

be

greatly

very

dis¬

appointed, however, if, at this
auspicious juncture in our eco¬
nomic history, we, as a people,
fail to avoid the pitfalls of false
economic

doctrine

and

fail

so

the bright promise of

pursue

nomic

abundance for

I

all.

to

eco¬

think

once

mount the

path

today,

boundless

succesfullv sur¬
besetting our

we

obstacles

face

we

a

economic

future

of

opportunity;

that

savings,

in

changes in the price of money will

pension funds, life insurance com¬

be gradually upward; that the in¬

panies,

etc.,

fluence

tained.

But

we

the

will
for

savings

be

well

main¬

that

very

reason

ask ourselves whether the

may

same

is,

can

increase

be

said

of

the

rate

of

of

voluntary savings if
optimism continues to prevail?
Another question which occurs to

Net

accrued

proceeds

under

of

such

such

circumstances

changes

mildly deflationary

on

may

be

bond prices,

the downward trend of which may
be

cushioned, from time to time,

by brief
market

appearances

of

the

depression, the

in the money

ghost

of

the late
ladder

easy money

is, "Will the revival of popu¬
in the equity market
divert some savings in the volun¬
tary category away from accus¬

the

sale

from

30,000

shares

of

ferred

Stock,

and

the

separate

its

Serial

with

plied by the

rowings,

incurred

with

temporary

the

the

construction

bank loans
ceed

tomed

stances

in

financing of

not expected to ex¬

are

$2,000,000.

at

bonds

These

program.

V

will

be

redeemable

general

redemption
prices
ranging from 105.01% to par, and
at special redemption prices re¬

ceding from 101.38% to par, plus
accrued

interest

in

each

Pacific Power & Light

Co., with
principal executive office in
Portland, Ore., is an operating
utility engaged-primarily in the
business of generating, purchas¬
ing, transmitting and selling elec¬
its

tric

energy

gon,

Washington, Wyoming, Mon¬
and

tana

in the states of

Idaho.

Other

interest

channels?"

certainly got

Monday.
more

a

As people

secure

interest

That

terrific shock last

because

grow

of

to feel

pensions,

guaranteed annual wages, etc., as




disturb you.
Money
going to continue to be in de¬
because, economic circum¬

appearances

is

permitting, the American
is going places.
I am

firmly

convinced

to

of

all

limited.

us

an

that

it

presents

opportunity

un¬

General

Ore¬

1955

pany's

total

operating

de¬

In

unaudited

an

ended

year

operating
pany

and

June

shown

were

members

1955,

of

revenues

net income at

Other

report for the

30,

total

the

com¬

at $41,815,000
$8,202,000.
of

the

offering

include Baxter, Williams &
Gregory & Sons; Stroud &

group

Co.;
Co.,

Inc.; Weeden & Co. Inc.; New
York
Hanseatic
Corp.; Wm. E.
Pollock

& Co. Inc.: Ira Haupt &
Co.; Heller, Bruce & Co.; Thomas
& Co.; and Foster & Marshall.

Offer Underwritten

to

common

it

as

also

began to

construct

new

in

on

cars

"Ward's," was in its final week of
last week, while Packard began 1956
1955

ceased

model

assembly

the

past

.;*

Chevrolet

with

estimated

an

"Ward's"
tion

for

estimated

September

total

was

United

462,800

States

units.

The

automobile

produc¬

breakdown:

General

280,300 (60.6%); Ford — 134,600 (29.1%); Chrysler—
(8.1%); American Motors—5,100 (1.1%) and Studebaker—

37,500

Packard—5,300

or

1.1%.

Steel Output

Scheduled at

a

Fractionally Lower

Rate This Week

I

Steel

buyers are clamoring to get on order books for first
delivery, but producers are cautious in taking orders,
"Steel" magazine reports the current week.
quarter

Some producers are taking orders for only one month of the

while

quarter,

cautious

are

have

they

not

want

opened
to

see

their
how

Further, they want to avoid

the first quarter.
The mills hope

and

others

because

they'll have.

over

they

counting

can

books.
much

The

carry*

overbooking in

be fairly current at the turn of the

fourth-quarter shipments being bigger
producers, expecting sales of
1956 models to start off fast, want all the steel they can get for
fourth-quarter delivery. Shipments should be big if the mills can
keep up production pace.
Buyers of 21 industrial components are also looking ahead
to the first quarter.
In "Steel's" regular quarterly survey of in¬
are

order

intakes.

on

Automobile

ventories

and deliveries, half the industrial component buyers
they'll be better off inventory-wise three months from

believe
now.

One

in

thinks he'll be

10

worse

off

because

stocks

are

too

low.

Currently, this trade

adds, three-fourths .report diffi¬
items, 5% more than last quarter. The
toughest items to get deliveries on are anti-friction bearings,
malleable iron and
steel castings, forgings,
air and hydraulic
cylinders and some electrical equipment.
The production
of steel ingot and castings for 1955 will
surpass 1954 output within 10 days, "Steel's" figures show.
Pre¬
culty getting

one or

paper

more

stockholders

the

rate

same

In the week ended Oct. 2, production maintained
in the preceding week—96% of capacity, this

as

trade paper states.

American

The

Iron

and

Stcd

Institute

announced

that

the]

17,

operating rate of steel companies having 96.1% of the steelmaking

industry will be at an average of 96.5%
of capacity for the week beginning Oct. 3, 1955, equivalent to
2,330,000 tons of ingots and steel for castings as compared with

share

held.
ten

The

by

before Oct.

or

(no par)

the

on

share

new

on

stock

common

per

for

basis

each

Corp.,

at $24
of

20

one

shares

offering is underwrit¬

a

investment

of

group

bankers headed by Lee

White,

Weld

Blair &

&

Higginson
Co. and

sale

to

are

be

used

short-term

bank

within

year

one

to

loans

under

reduce

incurred

the

com¬

pany's established lines of credit
to
provide additional funds for
lending to customers in the usual

in the consumer finance
(small loan) business. On June

gaged

30, 1955, its outstanding customer
receivable

amounted

to

$407,963,436, representing 1,426,753 loans, with an average bal¬
due per customer of $286. At

ance

June

30,

1955,

there

669

were

branches in the system, located in
cities of 32

nadian

states and

10 Ca¬

provinces.

W. L. Robertson
Colo.

—

business from
Mr.

offices

Robertson

entire

97.0% of capacity and 2,341,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1955 is
on
annual capacity of 125,828,310 tons as of Jan. 1, 1955.
For the like week a month ago the rate was 93.8% and pro¬

the actual weekly production
The operating rate is not
lower than capacity in 1955.
The percentage figures for 1954 are based on annual capacity of
125,330,410 tons as of Jan. 1, 1954.
duction

2,264,000 tons.

A

year

ago

placed at 1,692,000 tons or 71.0%.

comparable

because

capacity

Electric Output Turns

was

Slightly Downward the Past Week

The amount of electric energy
and

distributed by the electric liffht

industry for the week ended Saturday, Oct. 1, 1955,
estimated at 10,627,000,000 kwh., according to the Edison

power

Electric

Institute.

This week's

output increased 129,000,000 kwh. above that

of

when the actual output stood at 10,756,000,000
kwh., revised; it increased 1,469,000,000 kwh., or 16.0% above the
comparable 1954 week and 2,213,000,000 kwh, over the like week
the previous week,

in

1953.

Loadings Decline Mildly In the Week Ended
Sept. 24
Loadings of revenue freight for the week ended Sept. 24, 1955,
decreased 3,189 cars or 0.4% below the preceding week, accord¬
ing to the Association of American Railroads.
Loadings for the week ended Sept. 24, 1955, totaled 819,025
cars, an increase of 108,810 cars, or 15.3% above the corresponding
1954 week, but a decrease of 684 cars, or 0.1% below the corre¬
Car

0inr>o=

U. S. Car Scheduling

William

L.

Robertson is engaging in a securi¬
Locust.

the

sponding week in 1953.

Opens

(Special to The Financial Chronicle)

DENVER,

of

based

was

of business.

Household Finance Corp. is one
of the largest organizations en¬

notes

capacity

was

Co.

The net proceeds from the stock

ties

States

for 341,380 additional shares

1955

456

United

an even keel the
past
output of 23,920, "Ward's" noted, just a
shade under the previous week's 24,086 total.

Sept. 30, 1955, the right

subscribe

of

Studebaker

1,300,000 tons.

Household Finance Corp. is of¬
of record

total

liminary figures for the first nine months put production at
85,700,000 tons, only 2,600,000 tons short of production for all of
1954. Output is running 2,300,000 tons a week.
September output of 9,800,000 tons was highest since May's

Household Finance

fering to its

of

United States truck production rode

^

than

was

52.3%

-

week

year

1955, approximately 95%

during

activity caused a 6% drop in
car
scheduling last week to liJb,?0o units from the
147,197 recorded the week before.

revenues

rived from electric service.

built

United States

12 months ended June 30,

the

for

com¬

divisions

The downswing

mills

10 communities and water service

Industry

automobiles

week.

first

in eight communities. Of the

substantial

a

model manufacturing

steam

communities, telephone service in

Motors

output.

services

by
the
company
are
heating service in three

models

car

Tuesday, Oct. 4.
■;
American Motors, said

supplied

mand

economy

;

Motors

case.

5,509,000

Meanwhile, Chevrolet slashed activity more than 50% in
.the week in anticipation of model switchover, while Buick was
shooting to better the 20,000-unit mark for tne first time in its
history. Pontiac leads the way in 1956 model production among

on

connection

of

production last week, "Ward's" stated.
Ford Motor Co. had 18
plants docketed for Saturday assembly,
while all Chrysler divisions
except DeSoto kept two shifts active
the past week.

of

toward its

company

1956

gave

Pre¬

cash

total

auto

of

sale

the

Near-peak 1955 weekly programming at all Ford Motor Co.
divisions, and a sharp upswing in operations at Chrysler Corp.,

re¬

of interest rates. But don't let such

me

lar

surpassed
entire 1954.

interest, to

from

ceived

course

that,

the rate of increase of contractual

that

and

William
I

far

3.55%.

the bonds, together with funds

effective demand for goods and

dence

be

money, as

The State of Trade and

and

The
group
won
award of the issue at competitive
sale on Oct. 4 on a bid of 100.64%.

But easy money

relative matter anyway.

Prosperity,

I have

lieve

horizon

nomic

prices.
•

101.377%

yield

The

this

demand

so

have

Inc.

(Oct. 5) of¬
fered $10,000,000 of Pacific Power
& Light Co. first mortgage
bonds,
3%% series due Oct. 1, 1985, at

bud.

Early

is

Per¬

Co.

&

yesterday

effective

they

and,

up.

Stuart

construction program for 1955 and
1956 and for retiring bank bor¬

trading, but they do keep moving,
eventually, clean
haps short-term rates

Halsey,
associates

hand and other funds, will be ap¬

reached, unless the action of the that our
[stock market tops it out. The new a period
issue

Continued from page 6

Halsey, Stuart Group
Offer Utility ISonds

growing when the appetite is
whetted and when they are made

of

for

Putting

such

on

and less

the great numbers of

people

the

money

remain

interest

more

less?

save

eased, will
our

sell-off

rely

voluntary savings, will they spend

economic

requirements.
On
the
hand, if the stock market

to

grow

contractual nest eggs,

51

at

2283

was

for¬

merly with Waddell & Reed, Inc.

Declined 6% Last Week As

Activity at Chevrolet Slowed Up
New 1956 model'output in the automotive industry for the
latest week, ended Sept. 30, 1955, according to "Ward's Automotive
Continued

on

page

52

52

The Commercial and Financial Chronicle

(1440)

Continued

from

Trade Volume Aided By Cool Weather
Extensive Sales Promotions

51

page

Reports,"

and

Motor Co.
1956

near-peak
plus

Last

week

and

1955

divisions,

models 52.3%

car

ended

weekly programming at all Ford
sharp upturn at Chrysler Corp. gave

a

week's

to

week's car output declined below that of the
previous
by 8,324 cars, while truck output decreased by 166 vehicles
during the week. In the corresponding week last year 64,115 cars

Substantial

16,912 trucks were assembled.
Last week the agency reported there were
23,920 trucks made
in the United States. This
compared with 24,086 in the previous

furnishings
1954

trucks.

In

previous

week

for

appliances

industrial

failures

edged

to

up

in

186

the

the

prewar

Small failures with

under

$5,000, edged up to 31
from 30 in both the
previous week and the similar week of 1954.
Sixteen of the failing concerns had liabilities in

against 14

as

of

excess

by

retailers

well

household

of

the

above

comparable

in

television

radios

and

sets

contrasts

with

$6.71

at this

time

a

year

The

ago,

current

or

drop

a

oil, prunes, steers
coffee, eggs and hogs.
The

of 31
tion

index

and

lambs.

in

price

was

an

upsurge

increases

in

a

in coffee buying and

cocoa

grocers

reported

sales.

total

sum

of

the

pound

price

were

on a

country-wide basis

Reserve Board's index

the

for

week

taken from

as

ended

1955, an increase of 7% was reported. For the period Jan. 1, 1955
Sept. 24, 1955, a gain of 7% was registered above that of 1954.
Retail trade volume in New York City the past week showed

general use and its chief func¬
the general trend of food prices at the wholesale
\

level.

orders

Sept. 24,
1955, advanced 3% from the like period last year. In the preced¬
ing week, Sept. 17, 1955, a rise of 4% was registered above that of
the similar period of 1954, while for the four weeks ended Sept. 24,

foodstuffs and meats in

raw

is to show

wholesale

Department store sales

hams,

per

Total

the Federal

of 6.4%.

were

gain of about 6% over the like period a year ago, due largely

a

cooler

to

which

weather

spurred

sales

women's

of

men's

and

Wholesale Commodit>\Price Index Lifted In Past Week
To

According to the Federal Reserve Board's index department,
store sales in New York

Highest LeveLSince Early In February

mild

steady

upward

movement

the

past

Dun

week

lifted

closed at 279.45

on

Sept. 27, comparing with 277.95

week

a

with 274.73 at this time last
year.

sparked

than

by the

expected

unwanted

belief that
month

a

rains

the

which retarded

tions of the Midwest.

will

carry-over

be

along with reduced

ago

much

harvest operations

Advances in wheat and

smaller

in

many

other grains

and
sec¬
were

largely influenced by reports concerning price
supports and the
belief that any moves
affecting farm prices, particularly in a
Presidential

trading in

will

year,

grain

be

on

the

constructive

side.

Volume

of

and

soybean futures expanded sharply on the
Board of Trade last
week, with daily average sales totaling 65,500,000 bushels,
against 40,900,000 the previous week and
47,100,000
last year.

Trading in hard wheat bakery flours
ity restricted

to

Buffalo which

against

is

now

15-cent per cwt.
cake flours failed to attract
a

any

Despite

prospects

of

in

its sixth week.

advance

on

a

Mill protec¬

advertised

brands

of

appreciable bookings.

increased

consumption

weather, manufacturer interest in the
spot
at

spotty with activ¬

Springs by bakers and
regular suppliers due to the strike of grain

jobbers cut off from
handlers at
tion

was

purchases of

emergency

cocoa

low level.

due

cooler

market remained

001

^rehouse stocks of

231,743

a

week

ago

cocoa totaled 218,026

and compared with

113,931

from

Following
and

finished
Bullish

supports

Early

easiness

spot

cotton

moderately higher than
factors

next

cotton gray

early

season

a

prices

week

turned

upward

12

page

and

growing pressure for rigid
of increased activity in

reports

high
some

goods.

weakness

will
be
the
national population

subjects

discussed

trend

our

in

its

and

implications.

According to the Census Bureau,
population will increase about

our

million

50

years

during

the

compared with

as

next
a

20

growth

of some 35 million in the past two

decades.
the

This anticipated increase

equivalent

States

new

to

of

adding
nation

our

influenced

by the announcement that
the government will offer
up to 1,000,000 bales of short
staples
for export at competitive
prices after Jan. 1. Reported sales of
cotton in

the 14 markets continued to

increase and totaled 293,000
bales, against 223,300 the previous week. Inquiries from
foreign
sources were light and sales for
export continued in small volume.




million

90

five
with

populations the size of New York,
New Jersey, Pennsylvania, Cali¬

population is

past economic

and our growing
already making it¬

self felt in many areas of the na¬
tion. While billions of tax dollars
were

being

social

programs, we were

ulating
in

a

hundred

clossrooms 18

accum¬

at

more

thousand

months ago.

than

needed

In the

manner, our failure to main¬

our

have
and

various

shortage of classrooms
estimated

was

three

into

public schools—a shortage

our

that

poured

vital
be

to

highway system will
paid

for

at

today's,

tomorrow's, higher construc¬

There

buses

are
presently about 60
automobiles, trucks and

on

the

move

in

America.

According to certain conservative
estimates, industry is going to
have the task of
producing some

dur¬

tial

the

vast

resources

billions

industrial

United

poten¬

States

trans¬

lated into manpower

figures.
astounding.

are

let

But

represent.

the

the

of

results

The

One
employee in a manufac¬
turing plant in Pennsylvania, with
electric power operating his tools
of production, is capable of per¬
forming the work of almost 250
men
in
any
part of the world
where physical effort is the prin¬
cipal form of energy.
And we
have
13
million
production
workers in manufacturing indus¬

this nation.

tries in

am not a statistician, but
mathematics are correct,

Now, I
if

my

this energy

available to our man¬
is vequiva-

employees

ufacturing
lent to 3Y4

billion people working

only with their hands, or ZA bil¬
lion more than the entire^popu¬
here

the

of

should

But

This

world.
be

figure

enough.

,

farmer, sitting astride his
a
Kansas wheat field,

a

tractor

on

surrounded

his

number

there
in

are

all

in

of

5V2

some

Asia.

million

America.

with just one
can
haul as

truck,

in

year's time as
And we are
10 mil¬

a

2,000 Chinese coolies.
a

nation possessing almost

lion

trucks.

motor

And

operator, using modern

one

earth

moving equipment which
dig and move 35 tons of earth
one time,
can do the work of

than

15 hundred pounds

for
child in
the nation. A population increase
of the
proportions I have men¬
every

women

man,

at

600

capacity of my own
industry, steel, is equal to a little
and

tioned would

require a steel capa¬
city 30% greater than at present,
just to maintain this 15-hundredpound ratio.
no question, that of all
accomplishments, the one en¬
vied the most by others is our
industrial know-how, our indus¬

potential.

We

openly

have

displayed it to the nations of the
world for decades, yet

while many
tried, none has been able to
equal it. And it is possible that
none
shall, for it is in essence a
product of great numbers of peo¬
ple willing and able to risk capi¬
tal in a political climate which
recognizes the importance of the
have

fourth

dimension

confidence,

of

incentive

economics—

and

initia¬

tive.

application of these intan¬
gibles of the fourth dimension has
been

developed to a high point by
business leadership in this nation,
to

know-how is frequently

great

advantage
We

national government.

by

this,

Beyond

out

wit¬

or

than

more

tractors,

million

a

Norway, Sweden,
and

Britain

Great

automo¬

Italy,

produce enough electricity to
supply the annual needs of Amer¬
ica's

manufacturing

alone.

And

all

industries
nations,

these

of

plus Russia, Canada, Western Ger¬
many and Japan, could not pro¬
duce
meet

sufficient

kilowatt

total

national

our

hours

There

is

dustrial

no

that

doubt

potential

th? in¬

the

United

of

States is the most potent ultimate

the world today.

force in

The job

ahead is not only to maintain and
preserve

nomic

and

integrity,

its

assure

eco¬
our¬

selves that its virility is not weak¬
ened

by

theories

unsound

Your
of

the

or

discredited

and

untried

introduction

of

ideas.

job

and my job—the job
citizen of this land—is
keep this great creative system
ours
intact, for it alone stands
every

suspicion, sometimes by innuendo,
other times by outright asser¬

against

effort

to

require¬

ments.

to

intensified

France

together could

not

of

an

make

to

biles, or almost 16 million modern
refrigerators.

in

nessing

steel

present

our

enough steel ingots
million wheel-type

2V2

our

are

and

industry, operating at full capacity
for
just
one
week,
can
turn

certain quarters to cast doubt and
at

wheelbarrows

expand it, but td

The

used

with

men

shovels.

There is

our

and such

million

vehicles

The present

trial
A combination of

new

ing the next 20 years alone.

more

tion prices.
was

people
and

can

get together these days, it is al¬
most a certainty that one of the

tain

included

of

earth

of manpower which these

average-size

—Fourth Dimension of Economics

same

ago.

we

discussing

billions

•

hear indi¬
the
teeming
who populate

Frequently today
viduals

Measured

Manpower

One truck driver,

Confidence, Incentive, Initiative

free-wheeling

Prices for green coffee
developed some weakness at the weekinfluenced by reports that Brazil had
devalued the coffee
dollar from 37.06 to 40
cruzeiros and that the rate would hence¬
forth be revised on a
monthly basis. Lard values were firmer with
some
buying influenced by strength in soybeans and
grains.
Market receipts of
nogs showed a seasonal increase and
prices
were
mostly steady to lower for the week. The movement
of
fresh pork was slower
despite recent price reductions.
Both
steers and lambs scored
slight advances for the week.

Potential

Productive

much freight

bags, down from
bags at this time

end,

By

And

fornia and Texas.

last year.

prog¬

in

keeping with the
spirit of America.

farms

is
to

industrial

our

more

times

a

Continued

marketings

is

ress

by other mechanical
equipment and modern chemical
aids, is more than a match for 12

most

Trading on thel Chicago Board of Trade was featured
by a
daily-limit rise of 10 cents a bushel in soybeans last
Thursday with
prices reaching the highest levels in some time.
Buying was

effort

an

recorded

barlier,

with

with

trusted

City for the weekly period ended Sept. 24,

like period of last year. In
decrease of 6% was record¬
24, 1955, an increase of 1%
to Sept. 24, 1955, the index
rise of 1% from that of the corresponding period of

the

1954.

Grain markets were firm and
higher last week
grains scoring substantial gains over a week
ago.

that

understanding be¬
tween those responsible
for our
political climate and those en¬

1955, declined 4% below that of the
preceding week, Sept. 17, 1955, a
ed. For the four weeks ending Sept.
occurred. For the period Jan. 1, 1955

the

& Bradstreet
daily wholesale commodity price index to the
highest level since the early part of last
February.
The index

and

believe

I

the

business leaders.

toward tolerant

lation

apparel.

A

And

all

natjon

our

motivate

to

our

consider

sustained at

was

to

the

represents

Down

continue

majority of

of

that

hold1 that

Americans

interests

us

buying

merchandise.

number

Aiding in the past week's advance were higher quotations
for flour, wheat,
corn, rye, oats, barley, bellies, lard, sugar, cotton¬
seed

will

however,

sure,

best

individuals

week.

Higher the Past Week

against $6.25 the week before.

the

of

expanded slightly last
moderately above the cor1954 level. Buyer attendance at the major wholesale
centers rose noticeably and there was a greater interest in Winter

Moderately

Following the slight dip of last week, the Dun & Bradstreet
price index rose moderately to stand at $6.28 on
as

am

Industrial

steady.

moderate

wholesale food

Sept. 27,

I

fair-minded

showing

The dollar volume of wholesale trade

Wholesale Food Price Index Moved

interests.

the

There

$100,000

week ago.

a

reported
volume

high level a week ago.
The total dollar volume was moderately above the level of the
same period last year.
Shoppers were interested in frozen fruits,
vegetables and juice concentrates.
Fresh meat sales mounted
considerably, while poultry sales decreased moderately.

of $5,000 or more increased to
they did not reach the toll of 162 a year

liabilities

1%

were

Retail food

Failures involving liabilities
155 from 141 last week but
ago.

was

party, neither can business¬
put
the
nation's
welfare
above their own personal business

men

and

189 occurred

respectively. Failures remained considerably below
level, or down 30% from the 1939 total of 264.

the week

rose
considerably. There was an increased
suites, living room furniture and wrought iron
Refrigerators and electric stoves were popular major

volume

government
unjustified and ob¬

Volume in men's topcoats increased, while interest in men's suits
declined slightly.
Haberdashers reported higher neckwear and
dress shirt sales.
Sales of back-to-school wear continued high

week ended Sept. 29 from 171 in the
preceding week, Dun & Brad¬
street, Inc. reported. The toll was slightly lower, however than in

the comparable weeks of 1954 and 1953 when 192 and

in

trade

slight gains in apparel sales last week. Consum¬
ers sought women's Winter
coats, better dresses and sportswear.
Jewelry and handbags were among the most popular accessories.

Edged Upward Slightly the Past Week

and

with

who

to

viously biased viewpoint is based
apparently
on
assumptions
by
certain
politicians that
just as
they do not put the nation above

expansion.

There

Commercial

merchandise.

sales

with

noticeable

954 trucks.

Business Failures

increased

bedroom

dinette sets.

Dominion

plants built 3,929 cars
trucks, and for the comparable 1954 week 2,129 cars and

680

and

the

were

week

businessman

call

their

business centers reported

level.

call

and 753

gains

last

Furniture

week and

cars

Winter

level of

the

the
This

5%

and

placed at 4,850

suburban

above

moderately

year.

higher than a year ago, according to estimates by Dun &
Bradstreet, Inc. Regional estimates varied from the comparable
1954 levels by the following percentages: New England —1 to
-f-3; East 0 to +4; South and Southwest +1 to +5; Midwest and
Northwest -f-2 to +6 and the Pacific Coast +4 to -f9%.

Last

was

was

The total dollar volume of retail

week

\

and

interest in

consumer

with

production

16,912 a year ago.
Canadian output last week

volume

dollar

Downtown

output.
assembled an estimated

114,785 cars,
123,109 (revised) in the previous week. The past
total of cars and trucks amounted to 138,705
units, or a decrease below the preceding week's output of 8,490
units, states "Ward's."
compared

total

corresponding period last

of the total auto

the industry

on

the

the

the

on

answers

service.

,

buying was somewhat stimulated in the period
Wednesday of last week by cool weather and exten¬
sive sales promotions. There was a slight increase in retail trade

Industry

Thursday, October 6, 1955

.

tions,

and

Consumer

The State of Trade and

..

before all the world
any

as

would-be

a

bulwark

aggressor.

182

Volume

Number 5470

.

.

The Commercial and Financial Chronicle

.

(1441)

The

Indications of Current

week

t'-u-i

IRON

Indicated

AND

STEEL

steel operations

INSTITUTE:
.Oct.

Week

Ago

available..
on

(net tons)

..Oct.

93.8

and

condensate

42 gallons each)
Crude runs to stills—daily average
Gasoline output (bbls.)

(bbls.

average

2,264,000

*2,341,000

1,692,000

*6,684,200

Sept. 23

117,404,000

.7,471,000

Sept. 23

(bbls.)

6,671,350
25,426,000

25,954,000

6,(183,650

6,684,800

7,582,000

.

.

26,611,000

6,9^9,000
23,975,000

Sept. 23

2,061,000

2,097,000

2,044,000

2,280,000

—Sept. 23

11,131,000

11,505,000

11,307,000

10,461,000

oil output (bbls.)
**
Sept. 23
Stocks at refineries, bulk terminals, in transit, in pipe lines—•
Finished and unfinished gasoline (bbls.) at
Sept. 23
Kerosene (bbls.) at
Sept. 23
/Distillate fuel oil (bbls.) at
Sept. 23

8,066,000

7,342,000

8,027,000

of

VALUATION—DUN

INC.—315

151,805,000

152,165,000

154,698,000

151,145,000

-

Residual

fuel

oil

(bbls.)

\j Revenue

freight loaded

Revenue
CIVIL

(number

of

$26,701,188

East
South

ENGINEERING

CONSTRUCTION

—

8.

Private

?

New

-38,212,000
125,571,000

46,459,000

57,235,000

819,025

822,214

791,977

710,215

MERCE

681,043

661,927

652,918

602,418

(millions

-

$266,042,000

$432,958,000

$330,296,000

154,320,000

285,305,000

166,329,000

110,581,000

111,722,000

147,653,000

163,967,000

23,528,662

81,305,000

86,894,954

$555,829,122

$498,518,730

$459,157,830

—_U;.

74,646,000

127,830,000

144,631,000

19,823,000

19,336,000

20,071,000

NEW
of

DEPT.

SERIES

OF

Month

-

Sept. 24

—

9,630,000

9,970,000

9,730,000

8,262,000

Sept. 24

-

562,000

602,000

t

■

.■

Mectric

(in

output

—Oct.

kwh.)

000

(COMMERCIAL

121

Sept. 24

■'

304,000

623,000

J

AND

DUN

INDUSTRIAL)

*

''

111

118

1

,627,000

.

186

10,706,000'

171

'

Pig iron

*

(per

>'

,

9,158,000

215

-

4.801c

Sept. 27

5.174c

5.174c

$59.00

$59.09

$59.09

'$>56.59
'

8erap steel (per
METAL PRICES
I

Electrolytic

A

M. J.

copper—

-

•

Dead (New York)
Dead (St. Louis)

-

$44.17

$44.83

$43.83

$30.17

of

Sept.

COTTON

(running

1

AND

LINTERS

MERCE—RUNNING
month

bales)

1,388,380

DEPT.

—

OF

BALES:

August—.

717,227

consuming establishments

as

public

(East St.

storage

SPINNING

Active

place

active

spindle hours

-

,

1,026,808
.8,442,227.
112,447

127,213

1,425,823

1,504,880

19,136,000

19,147,000

22,292,000

22,247,000

19,136,000

27

27—t—

Aug.

on

Aug.

on

27

omitted

(000's

Aug. 27
Active spindle hours per spindle in place August'
STORE

i

,

SALES—SECOND

44.175c

43.475c

40.925c

29.700c

ERAL

44.950c

43.450c

40.800c

30.625c

RESERVE

96.750c

97.375c

95.875c

93.250c

Averages!(M)—Month

Sept. 28

15.500c

i5.oooc

15.0()0c

Sept. 28

15.300c

at

13.000c

13.000c

DISTRICT,

BANK

OF

14.750c

Sales

(average

14.800c

14.550c

Sales

(average daily),

12.500c

14.800c

Sept. 28

at

RESERVE

11.500c

Sales

(average

■

;

t

Stocks,

19.147,000

22,'714,000
19,306,000

7,546,000

&,583,000

397.2

429.1

1,470,221

}

19,271,000;

9,293,000
464.7

,

N.

of

FED¬

FEDERAL

Y.

1947-49

—

August:

monthly),

unadjusted

86

95.45

95.47

94.71

99.98

-107.62

107.44

107.27

110.88

110.70

110.52

115.43

Oct.

109.42

109.06

109.06

112.37

OF

Oct.

107.80

107.44

107.27

110.52

102.63

102.80

102.63

104.48

106.21

105.86

106.04

109.06

Durable

107.98

107.80

107.80

110.88

Non-durable

108.52

108.52

108.16

112.00

105

*113

116

115

13,249,000

*12.988.000

12.418.000

*7,523,000

6,890,000

5,693,000

*5,465,000

5,528,000

107.1

*105.0

100.4

156.0

*151.5

134.8

16,772,000

'16,491,000

15,822,000

82

August:

Oct.

105

110.52

Aa

adjusted

81

108

7,556,000

Stocks, seasonally

Oct.

Oct.

*78

117

adjusted-

105
114

seasonally

76

81

unadjusted

daily),

unadjusted

Average corporate

A

—

,

_

Baa

EMPLOYMENT

All

Railroad
Public

Group

Utilities

Industrials
MOODY'S

Group

Group
YIELD DAILY

BOND

AVERAGES:

Oct.

""

Railroad
Public

-

Industrials
MOODY'S

Group

RATIONAL

Orders received

Production

.

INDEX

Unfilled

;

(tons)

3.48

3.38

3.40

3.39

3.29

3.29

3.25

3.25

3.27

410.5.

.

..

3.06

407.8

404.5

246,613

249,364

AVERAGE

=

293,667

290,350

283,215

DEALERS

EXCHANGE

Odd-lot

sales

—

AND

SPECIALISTS

SECURITIES

by dealers

ON

EXCHANGE

(customers'

N.

Y.

Average=100)—

Estimated

number

__

of

employees in

manufac¬

turing industries—
All

manufacturing

Durable

goods

____

9,570.000

*9,525,000

8,820,000

7,202.000

__.

goods—!

Non-durable

*6,966,000

7,002,000

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

THE

OF

FEDERAL

RESERVE

SYSTEM—1947-49 =1(10—Month

of

Aug.:
140

139

123

*131

123

$2,548,000

—

—

*

140

adjusted

102

585,767

107.09

.t

.

;W

:

'•

'

«

104

635,802

•

-t

g9

589,665

'I

"»•

92

369,305

LIFE

106.94

106.61

105.70

\

$2,386,000

$2,076,000

PURCHASES—INSTITUTE

INSURANCE
LIFE

OF

INSURANCE—Month

of

August

omitted):

Ordinary

—

Industrial

528,000

536,000

647,000

381,000

$3,645,000

$3,561,000

$2,993,000

$24,532

*$24,457

$24,011

19,388

*19,322

19,420

$43,920

*$43,779

$43,431

26,763

*27,111

23,209

$30,319,000

$30,244,000

$29,892,000

2,861

—

540.000

557,000

—

STOCK

2,457

2,339

245

COMMISSION:

purchases)—t

Total.

Number of shares

Sept. 10

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

1,019,676

975,702

975,290

706,904

Sept. 10

value

Dollar

(1947-49

246,383

Sept. 30

«TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

Indexes

manufacturing

(000's

100

Avge!=100)—

(1947-49

211,305

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

All

ERNORS

256,104

Sept. 24

of period

of

workers)

3.12

Sept. 24
at end

(production

goods

3.22

3.28

406.9

Sept. 24
Sept. 24

activity

of

3.14

3.59

V

DEPT.

goods

Seasonally

(tons)

orders

3.32

3.59

2.50

ASSOCIATION:

(tons)

Percentage

3.04

3.31

-3.58

3.29

2.89

S.

SERIES—Month

manufacturing

Payroll

2.88

3.22

Oct.

Group

PAPERBOARD

3.14

3.14

3.22

Oct.
Oct.
Oct.

:

COMMODITY

3.32

3.13

—Oct.

—

Group

Utilities

3.31

3.20

'

3.30

3.12

;

2.84

Oct.

Average corporate

2.84

PAYROLLS—U.

Employment Indexes
All

U. S. Government Bonds.

AND

LABOR—REVISED

manufacturing

*

$58,281,736

$53,550,016

$51,612,834

$33,251,350

MANUFACTURERS' INVENTORIES

(DEPT.

Sept. 10

857,024

802,475

785,375

691,548

Customers'

short

sales

Sept. 10

4,288

4,916

5,881

12,092

Customers'

other sales

Sept. 10

852,736

797,559

779,494

679,456

bept. 10

$44,083,755

$39,503,986

$41,063,005

$30,060,985

Sept. 10

222,880

218,400

203,660

192,840

Sept. 10

222,880

218,400

203,660

Sept. 10

416,080

391,870

OF

COMMERCE)

AND

SALES

SERIES—

NEW

192,840

Dollar value

Round-lot

sales

Short sales

Other

Sept. 10

sales

TOTAL ROUND-LOT STOCK
EXCHANGE

Durables

ACCOUNT

Total.

SALES

ON

THE

N.

Y.

403,730

244,550

(SHARES):

MEMBERS

OF

393,310

10,045,810

8,953,150

8,742,810

7,410,270

Sept. 10

TRANSACTIONS

FOR

ACCOUNT

OF

10,510,040

9,457,590

9,136,120

7,724,310

1.203,870

1,206,010

on

217,460

213,010

180,900

1,069,280

963,280

979,190

739,3^0

1,286,740

1,176,290

1,160,090

899,970

Sept. 10

255,550

Sept. 10

26,650

238,530

264,560

12,300

16,900

21,050

Sept. 10

Total

initiated

Other

283,650

'213,630

252,480

225,930

269,380

450,725

422,060

361,472

130,150

134,700

75,580

Sept. 10

763,834

594,527

398,810

893,984

729,227

474,390

Sept. 10

:

PRICES,
(1947-49

NEW
=

SERIES

—

U.

8.

-

277

271

272

213

235 "

228
228
286

211

223

'

crops

246

257

237

237

animals

251

261

278

products

249

242

238

191

178

172

$953,058

$1,024,394

$733,724

Poultry

and

products

eggs

244

1,994,115

1,873,580

1,806,012

1,383,145

ESTATE

AREAS

OF

FINANCING

S.

U.

BOARD—Month

HOME

—

of

July

NON-FARM

IN

LOAN

(000's

BANK

omitted):

DEPT.

374,260

360,010

273,380

212,710

2,116,764

1,771,437

1.630,480

1,278,847

Savings and

2,491.024

2,131,447

1,903,860

1,491,557

Insurance

161,068

173,619

155,437

Bank

472,218

516,078

371,240

168,363

171.343

141,487

282,826

300,776

250,762

425,313

449,323

374,295

OF

and

foods

109.7

89.0

*89.4

87.9

101.7

101.8

101.0

104.5

84.6

82.7

118.0

117.9

117.1

114.5

institutions.

$2,462,846

as

(000*5

Investment Plan.

Imports

OF

EXPORTS
CENSUS

—

AND

$2,635,533'

$2,026,945

$1,261,000

STATES

BUREAU

^Includes 793,000 barrels of foreign crude runs. ,§Based on new annual capacity of 125,828,310 tons
1, 1955, as against Jan. 1. 1954 basis of 124,330,410 tons.
tNumber
of orders not reported since introduction
of Monthly

:*Revised figure.

—

Total

UNITED

Jan.




lending

86.5

Sept. 27

-

Miscellaneous

92.7

83.9

farm

110.5

Sept. 27
other than

111.4

—Sept. 27

foods

All commodities

111.3

—

savings banks

Individuals

Sept. 21

.

associations

loan

companies
and trust companies

Mutual

100):

products

Processed

—

Sept. 10

commodities

Farm

:—

247

Sept. 10

—

Commodity Group—
All

446

—!—

Sept. 10

sales

—

435

REAL

Total sales

LABOR

437

——-

—

hay.

334,237

Short sales

WHOLESALE

202

Dairy

303,167

—Sept. 10

purchases

190

Meat

31,070

sales

Other

178

and

Livestock

257,015

Total round-lot transactions for account of members—
Total

225

grain

Oil-bearing crops.

257,350

.Sept. 10

Total sales

grain———1

222

Truck

236,300

310,300

.Sept. 10

Short sales

238

214

Fruit

off the floor-

purchases

237

228

products

Cotton

247,650

Sept. 10

sales

transactions

15:

Aug.

233

farm

Tobacco

'

Other

of

INDEX

—

AGRICUL¬

OF

Feed

160,590

the floor—

Total sales

FARMERS
DEPT.

S.

Food

861,570

Sept. 10

Total purchases
Short sales

BY

U.

—

Crops

All

1,287,840

Sept. 10

sales

Total sales

June

of

Unadjusted—

Sept. 10
Sept. 10

Other transactions Initiated

RECEIVED

TURE— 1910-1914=100— As

specialists in stocks in which registered—

Short sales
Other

rRICES

NUMBER

MEM¬

purchases

INSUR¬

LOAN

AND

314,040

Sept. 10

SAVINGS

CORPORATION—Month

ANCE

504,440

FORECLOSURES-

ESTATE

REAL

FEDERAL

sales—

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
of

(000's omitted):..

Aug. 31

NON-FARM

Total sales

Transactions

of

As

DEPT.

STOCK

sales

ROUND-LOT

IN CIRCULATION—TREASURY

MONEY

464,230
Other

Other

1

:

Non-durables——

ROUND-LOT STOCK TRANSACTIONS

AND

round-lot

Total

Jijly (millions of dollars):

Sales

purchases by dealers—

Number of shares

FOR

of

lure

Round-lot

Total

Month

Inventories—

by dealers—

Number of shares—Total sales

of

141,156

1

(DEPT. OF COMMERCE):

Spinning spindles

U. S. Government Bonds

-

9,501,877

'667,762

1,398,862

9,752,138

Aug. 27

—

of Aug.

as

Sept. 28

"

-

w'_

active

—Sept. 28

...

at

Louis)

Aug.

Aug. 27—

Sept. 28

—

at

MOODY'S BOND PRICES DAILY AVERAGES:
•; .

of

as

of

566,640

1,210,483

27—

Stocks

1,694,792

COM¬
'

of

In

DEPARTMENT

.

*

Zinc

$77,600

QUOTATIONS):
-

I Domestic refinery at

Export refinery at
Btralts tin (New York)

;
-

Sept. 27

gross ton)—

(E.

$78,800

11,800

(DEPT. OF COMMERCE)—

Spinning spindles in

5.174c

Sept. 27

ton)_

gross

22,400

192

"

—I

23,200

$79,200

GINNING

Cotton spindles

Sept. 29

lb.)

(per

*$43,779
■i 11,800

$43,437

11,900

Total.

COTTON

COTTON

Finished steel

July

Linters—Consumed month of August

10,756,000

it

BRADSTREET, INC.
IRON AGE COMPOSITE PRICES:

COM-

of

23,400

Consumed

125

'.

MDI80N ELECTRIC INSTITUTE:

FAILURES

100

30,841,192

$428,316,633

dollars):

In

=

38,060,345
$460,458,385

$43,920

INVENTORIES

!

INDEX—FEDERAL RESERVE

AVERAGE

41,436,766

103,199,000

37,076,000

95.260,081

$514,392,356

123,270,000

Sept. 29
Sept. 29

SALES

27,733,918

$233,851,000

Sept. 29

STORE

27,080,748

111,088,125

Retail

Sept. 29

municipal

SYSTEM—1947-49

34,352,176

Wholesale

As

DEPARTMENT

36,510,587

Manufacturing

ENGINEERING

OF MINES):

36,567,802

Outside New York City.

BUSINESS

Sept. 29

BUREAU

82,991,813

HII
IIIIIII

City_

34,093,000
129,794,000

Federal
8.

88,042,577

;

United States

York

46,700,000

Public construction

(U.

87,218,703

;—IIHIIII

35,726,000

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

99,477,175

_

Pacific

141,229,000

construction

COAL OUTPUT

43,941,690

134,650,663

Mountain

46,932,000

construction

-State and

66,518,279

~~~~
~

43,126,426

Central

36,254,000

NEWS-RECORD:
Total U.

86.472,098

48,792,221

.

West Central

cars)__Sept. 24

of

$25,670,173

83,729,672

Central

Total

,

(no.

$35,850,949

Ill-

-Ill-

South Atlantic

142,814,000

cars)

freight received from connections

Ago

August:

Sept. 24

ASSOCIATION OF AMERICAN RAILROADS:

Year

Month

&

England

Sept. 23

at

of that date:

Previous

CITIES—Month

7,469,006

,

Residual fuel

;

PERMIT

Middle Atlantic

of
Sept. 23

Kerosene output (bbl».)..—
Distillate fuel oil output (bbls.)

1

BUILDING

New

output—dally

are as

Month

71.0

AMERICAN PETROLEUM INSTITUTE:
oil

of quotations,

cases

Ago

'97.0

§2,330,000

9

in

or,

BRADSTREET,

ingots and castings

Crude

that date,

either for the

are

Latest

Equivalent to—
Bteel

Dates shown in first column

Year

§96.5

9

month ended

or

Month

Week

(percent of capacity).

month

or

Previous

Latest

AMERICAN

production and other figures for th«

cover

i

latest week

Business Activity

•

following statistical tabulations

53

$1,266,700

$1,156,000

973,000

885,000

825,000

IMPORTS

Month of

August

omitted):

54

The Commercial and Financial Chronicle

(1442)

.

.

.

Thursday, October 6, 1955

if INDICATES

Securities Now in Registration
Uranium & Oil Corp.
notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For mining operations. Office—65 East Fourth South
St., Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.
Academy

June 10 (letter of

Admiral Finance Corp., St.

Louis, Mo.

July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount. Proceeds — To retire
$513,182.50 of outstanding 4*jnior subordinated deben¬
tures, series B, and for expansion and working capital.
Underwriter

—

C.

Paul

Kimball

&

Co.,

Chicago,

111.

Admiral Finance Corp., St.

Louis, Mo.
July 29 filed 50,000 shares of 60-cent cumulative pre¬
shares of common stock

ferred stock (par $5) and 10,000

to be offered in units of five preferred
one
common share.
Price
$50 per unit.

(par 10 cents)
shares

and

—

Underwriter

—

Paul

C.

Kimball

&

Co.,

Chicago,

111.

Aecoi Corp., Beverly Hills, Calif.
Sept. 19 filed 1,245,000 shares of common stock (par 10
cents) to be offered for subscription by common stock¬
holders

on

basis.

share-for-share

a

Price—To

be

sup¬

plied by amendment. Proceeds—To repay borrowings;
for exploration and development of oil and gas prop¬
erties and further acquisitions.
Underwriter—None, of¬
fering to be made on a "direct communication" basis
by brokers.
if Agricultural Leaders Foundation, Inc.
(letter of notification) 5,000 shares of common
stock. Price
At par ($10 per share). Proceeds — For
legal and accounting expenses; payment and work on
Sept. 21

—

real

property;

Office—53

2nd

machinery and equipment; and reserve.
St., Yuma, Ariz. Underwriter—None.

500,000 shares are under option to certain
share. Underwriter—None.

at $4

persons

^American Motorists Insurance Co. (10/25)
Sept. 30 filed 200,000 shares of capital stock (par $3) to
be offered for subscription by stockholders of record
Oct. 25, 195o, on the basis of one new share for each five
shares held. Price—$8 per share. Proceeds—For general
corporate

Office—Chicago,

purposes.

111.

Underwriter

—None.
American

Telephone & Telegraph Co.
to $637,165,800 of 12-year 3%% con¬
vertible debentures due Oct.
13, 1967, being offered!
for
subscription by stockholders of record Aug. 25,
1955, on the basis of $100 of debentures for each eight
shares held; rights to expire on Oct.
13, 1955.
The
Aug.

filed

2

debentures

up

to be convertible into

are

ginning Dec. 13, 1955, at $148
render

cash.

of

$100

of

per

debentures

tion program.

common

stock be¬

share, payable by sur-;

and

Price—At face amount.

payment

of

$48

in

Proceeds—For construc¬

Underwriter—None.

Arizona Cinnabar

ITEMS

•

Goods

Co.

PREVIOUS
REVISED

Corp., Mesa, Ariz.

ISSUE

Underwriter—Kidder, Peabody & Co., New

York.'

per

ADDITIONS

SINCE

/

California

Consumers

/"■'

.

.

,,

,

Corp.,

Los Angeles, Calif.
Sept. 21 filed 52,942 shares of capital stock (par $10)
to be offered for subscription by stockholders on the
basis

of

one

share

new

$15 per share.

for

each

share

Proceeds—From sale of

held.

Price—

stock,

together

with other funds, to be used for payment of 5% sinking
fund mortgage bonds due Dec. 1, 1955.
Underwriters—■
J.

S.

Strauss

both of

San

& Co. and Lawson,
Francisco, Calif.

Levy

and

Williams,

Canadian Uranium

Mines, Ltd., Montreal^ Canada
(regulation "D") 2,000,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For exploration and development
expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
June

3

Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc.

Aug. 31 (letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—
To increase capacity of mill recently constructed. Office

Underwriter—Mountain States Securities,
Inc., Den¬

ver,

Colo.

stock

—400

Desert

Air

Lodge, Route 2, Mesa,

Ariz.

Under¬

writer—James Anthony Securities Corp., New York.
Arizona

Public

16 filed

offered

stock

common

(par five cents).

Price—$1 per share. Proceeds—
mining expenses. Underwriter—Universal Invest¬
ment Corp., Washington, D. C.
For

Finance Co., ^Phoenix, Ariz.
78,006,081 shares of common stock to be
subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20

Sept.

Cedar Springs Uranium Co.,
Moab, Utah
June 8 (letter of notification) 300,000 shares of

Central

for

Maine

Power Co.

cents per

share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by

Sept. 16 filed 505,719 shares of common stock (par $10)
to be offered for subscription
by the holders of common
stock and 6% preferred stock of record
Sept. 30 at the

salesman of the insurance firm.

rate

Automatic Tool Corp.
Sept. 7 (letter of notification)

of

one

share

new

shares

common

held

of

common

and

one

stock

share

of

for

each

new

five

common

stock for each 6%

Industrial Development Corp.
(letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil

stock

and gas

manufacture

preferred share held; rights to expire
Employees will have the right to subscribe
up to 20,000 of the unsubscribed portion.
Price—
To be supplied by amendment. Proceeds—For construc¬

screw.

tion program.

Allied

June

20

operations.

Underwriter

Tex.

Office—1508 Capitol Ave., Houston,
Paul C. Ferguson & Co., same ad¬

—

dress.

if Allied Publishers, Inc., Portland, Ore.
Sept. 19 (letter of notification) 3,500 shares of 10% pre¬
ferred stock (par $10) and 3,500 shares of common stock
(par $1), to be offered in units of one share of preferred
and one share of common. Price—$15 per unit. Proceeds
—For working capital.

Underwriter—None; units to be

stock

(par $1)

to be

offered in units of one
Price—$11 per unit. Pro¬
ceeds—For working capital, etc.
Office—206 No. Vir¬
ginia St., Reno, Nev. Underwriter—Senderman & Co.,
Bhare of each class of stock.

address.

same

20,000 shares of common
share. Proceeds—To set

factory and purchase equipment and machinery for
and
sale of the
"grip-lock" driver and
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
N. Y.

if Basin
Sept.

19

Natural

Gas

Corp., Aztec, N. Mex.
(letter of notification) 750,000 shares of

com¬

stock

(par five cents). Price—40 cents per share.
Proceeds—For expenses incident to oil and gas activities.
Office—109 W. Caco St., Aztec, N. M.
Underwriter—

mon

Corp., New York, N. Y.

offered in units of

share of each class of stock. Price

one

—$11 per unit. Proceeds—For construction of hotel and
related

activities and for contingencies, stock in
trade,
working capital. Underwriter—None.

Alouette Uranium & Copper

if Big Chief Urainum Co., Pueblo, Colo. I
(letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents
per share.
Proceeds—For expenses incident to mining
operations.

Office

441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.
—

Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of

stock.

expenses

Price—One

incident

to

cent

share.

Proceeds—For

activities.

Underwriter—

per

mining

Weber Investment Co., Ogden, Utah.

American

Can

mon

stock.

com¬

Price—15 cents per share. Proceeds—For

incident

to

Underwriter

ex¬
—

Savings
Bldg., Spokane, Wash. Underwriter—Standard Securities
Corp., same city.
Black Panther Uranium

Co., Oklahoma City, Okla.

July 12 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah.

Co,

Sept. 21 filed 392,000 shares of common stock (par
$12.50). Price—To be supplied by amendment. Proceeds
To
selling stockholders.
Underwriters
Morgan
Stanley & Co. and Clark, Dodge & Co., both of New

Porter,

Stacy

&

Co.,

Houston,

Tex.,

Underwriter—

on

"best

efforts

basis."

—

—

York.

Offering—Expected today (Oct. 6).
if American Hide & Leather Co., Lowell, Mass.
Sept. 28 filed $2,426,500 of its 5% convertible subordinate
debentures due Oct. 1, 1975 and 609,193 shares of com¬
mon stock
(par $1) to be offered in exchange for out¬
standing 48,530 shares of 6% cumulative preferred stock
on

the

common

basis

of $50 of debentures and 2V4
stock for each preferred share.
The

shares

of

remaining

Blenwood Mining & Uranium Corp.,
Denver, Colo.
July 29 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 30 cents per share.
Proceeds

For expenses incident to

mining operations.
Office—612 Kittredge Bldg.,
Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
—

Bojo Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For expenses incident to
mining operations. Of¬
fice—403 Felt Building, Salt Lake
City, Utah. Under¬
writer—J. E. Call & Co., Salt Lake
City, Utah.
★ Brodie (Ralph N.) Co., San Leandro, Calif.
Sept. 20 (letter of notification) 21,400 shares of
capital
(par $1). Price—At an aggregate not to exceed
$300,000. Proceeds — To certain stockholders. Office—
stock

Alvarado & West Ave.

137, San Leandro, Calif...Under¬

writer—Dean Witter & Co., San
Francisco, Calif.

.

^Bureau of National Affairs, Inc.
Sept. 16 (letter of notification) 500 shares of common
stock to employees
only (no par). Price—$32 per share.
Proceeds—For operating expenses or other
obligations.
Office—1231 24th St., N, W.
writer—None.

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires




to

all

offices

Chicago

Cleveland

Proceeds

—
For expenses incident to
mining
Office—810 Deseret Building, Salt Lake
City,
Underwriter—Utah Securities Co., same
City.

activities.
Utah.

Parking Service, Inc..
1-(letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
shares of voting common
stock, class B (par 10 cents)

Washington, D. C/ Under¬

if Burlington Industries, Inc. (10/19)
29 filed $30,000,000 of subordinated debentures
due Oct. 1, 1975. Price—To be
supplied by amendment.
Sept.

Proceeds—To repay bank loans which
the purpose of

be

to

were

offered

in

units

of

two

class

A

and

class B

one

Price—$5 per unit. Proceeds—For general work¬
capital.
Office—505 National Bank of Commerce

Building,

Charleston,

W.

Va.

Underwriter—Crichton

Investment Co., same address.

if Chromalloy Corp. (10/17-21)
Sept. 29 (letter of notification) 133,100
stock (par 10 cents). Price—$2.25

mon

shares of

com¬

share.

Pro¬

per

ceeds—For

equipment, working capital, etc. Office—109
St., New York 23, N. Y. Underwriter—S. D.
Co., New York.

West 64th

stock (par 10 cents). Price—25 cents per share. Proceeds
—For mining expenses.
Office — 303 Lincoln

mon

share).

ing

development expenses, etc. Underwriter—Hudson-Bergen
Securities, Inc., Cliffside Park, N. J.

com¬

—

share.

Underwriter—Jay W. Kaufmann

Big Smoke Uranium, Inc., Spokane, Wash.
Sept. 7 (letter of notification) 800,000 shares of common

6,500,000 shares of

Harriman Ripley & Co.
Corp.; and Coffin & Burr, Inc.

Chaffin Uranium Corp., Salt Lake
City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per

Road, New York City.
& Co., New York.

common stock.
Price—30 cents per share. Proceeds—For
exploration and

Amarilla Uranium, Inc.
July 27 (letter of notification)

Underwriters

Inc.; The First Boston

Aug.

mining activities.
Cranmer & Co., Denver, Colo.

'

Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of

19.

for

Industries Corp.
(letter of notification) 124,000 shares of com¬
mon stock (par 50
cents). Price—$2 per share. Proceeds
—For working capital, etc.
Office — 1424 East Farms

penses

Mines, Inc.,

Oct.

on

Charleston

Bassons

Aug. 24

Sept. 20

Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock
(par $10) to be

and

per

up a

'

Reno, Nev.

June 27 (letter of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common

Price—$5

Columbia Securities

offered through officers and directors.

Allstates Credit Corp.,

(par $1).

obtained for

acquiring the stock bf Ely & Walker Dry

Fuller &

Cisco Uranium

Corp., Salt Lake City, Utah

Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par one cent).
Price—Three cents per share.
Proceeds—For

mining expenses, etc. Office—2630 South
West, Salt Lake City, Utah.
Underwriter—Denver
Securities, Inc., Denver, Colo.

2nd

if City
Oct.

4

Discount Corp.
of notification)

(letter

debenture
1962.

bonds

Price—At

Proceeds
Avenue
Clad

—

dated
par

$150,000 of 7-year 12%
10, 1955 and due Oct. 10,
denominations of $500 each).

Oct.

(in

For working capital.

Office—427

Extension, Brooklyn, N. Y.
(Victor V.)

Flatbush

Underwriter—None.

Co., Philadelphia, Pa.

June 17 (letter of notification)
120,000 shares of common
stock (par 25 cents). Price—$2.50
per share. Proceeds—
For equipment and workmg capital. Underwriter—Bar¬
rett Herrick

&

Co., Inc., New York.

Clad-Rex Steel Co., Denver, Colo.
Aug. 24 filed 400,000 shares of common

cents).

Price—$1.25

short-term
Underwriter

Colo.;

per

obligations,

share.

etc.

and

stock

(par 10

Proceeds—To

for

working

repay

capital.

Mountain States Securities Co., Denver,
and Joseph McManus & Co., New York, N. Y.
—

Colohoma Uranium, Inc., Montrose, Colo.
April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general
corpor¬
ate

purposes.

Underwriters—General

New York; and Shaiman &

Investing

Co., Denver, Colo.

Corp.,

Offering

—Expected sometime in October.

if Color Corp. of America, Los Angeles, Calif.
\
Sept. 23 (letter of notification) 27,500 shares of common
stock (par

share).

selling

$1).~ Price—At market (estimated at $1.75 per
Proceeds—To Benjamin B. Smith, who is the
stockholder^- Office—11801 W. Olympic Blvd.;

Los

Angeles, Calif. Underwriter—Francis I. duPont
Co., Los Angeles, Calif.

&

Colorado Oil & Uranuim Corp.
June 7

(letter of notification) 300,000 shares of common
(par 20 cents). Price—$1 per share. Proceeds—
For oil and mining activities.
Office — 350 Equitable

stock

Bldg., Denver, Colo.
city.

same

Underwriter—Birkenmayer % Co.,

Volume

182

Number

5470

.

.

The Commercial and Financial Chronicle

.

(1443)
Ccmei Uranium

Aug. 20

(letter

stcck

mon

Corp., Washington, D. C.
notification) 700,000 shares of

of

Farnam

Corp.,

com¬

cent).

one

Frice—Five

Proceeds—For mining operations.

cents

per

share.

Office—501 Perpetual

Uranium Mines, Inc.
July 12 (letter of notification) 15,000,000 shares of

Road,

Grand

Junction, Colo.
Co., Denver and

Securities

—

privately and retained earnings, will be
used
a
$12,000,000 modernization and expansion

to

pro¬

Underwriters—Dillon,

Read & Co. Inc. and Riter

Cordillera Mining
Co., Denver, Colo.
June 8 (letter of
notification) 2,995,000 shares of common
stock.
Price—At par (10 cents
per share).
Proceeds—
For

expansion and life
Office—616 South Main St., Tulsa, Okia. Un¬
derwriter—Eastman, Dillon & Co., New York, N. Y.

reserves.

Community Credit Co., Omaha, Neb.
(letter

of notification)
1,000 shares of 5^%
preferred stock.
Price—At par
($100 per
Proceeds—For working capital.
Office—3023

cumulative

Office—1806

South

52nd

•

Continental Production
Corp.

29 filed $8,700,000 of 15-year 5V2% income
de¬
bentures due Sept. 1, 1970 and
870,000 shares of common
stock (par 10
cents) to be offered in units of $50 of
debentures and five shares of stock.
Price—$50.50 per
unit. Proceeds—For
acquisition of production
.

payments.

Office—Las Vegas, N'ev.
Underwriter—First
Co., Inc., San Francisco, Calif.

California

Cook

Industries, Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par
$1), of which 107,915 shares are to be sold
by company and 92,004 shares by a selling stockholder.
Price—$1.50

per share. Proceeds—For general
corporate
Underwriter—Central Securities Co.,

purposes.

Dallas,

Texas.

Co., both

of

New York.

mining operations. Offices
738 Majestic
Bldg.,
Denver, Colo., and 317 Main
St., Grand Junction, Colo.
Underwriter—Lasseter & Co.,
Denver, Colo.
—

★ Coro,

(10/11-12)

Aug.

Commonwealth

credited to capital stock, unassigned
surplus and reserve
for business development and for

bonds.

Ave., Cicero, 111.
Underwriter—Illinois Securities Co., Joliet, 111.

Life
Insurance Co.
(10/10-14)
Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be

share).

gram.
&

fund

Commonwealth Credit Corp.,
Phoenix, Ariz.
Sept. 9 filed 700,000 shares of capital stock (par $1).
Price—$2 per share. Proceeds—For working capital, etc.
Underwriter—None.

6

rowed

finance

Conlon-Moore Corp., Cicero, III.
Aug. 29 (letter of notification) $300,000 of first
mortgage
(secured) 5% sinking fund bonds, series A, dated Oct.
1,
1955, to mature Oct. 1, 1967.
Price — $100 per bond.
Proceeds—To redeem outstanding first
mortgage sinking

(par one cent).
Price—Two cents per share.
Proceeds—For expenses incident to
mining operations.
Office—170 Vista Grand
Underwriter
Columbia
Grand Junction, Colo.

Copperweld

Steel Co. (10/10)
Sept. 20 filed 230,000 shares of
common stock
(par $5).
Price—To be
supplied by amendment.
Proceeds—From
sale of this
stock, together with $5,000,000 to be bor¬

kane, Wash.

com¬

stcck

June

Underwriter—Wachob-Bender

>

stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326
Wiggett Bldg.,
Coeur d'Alene, Idaho. Underwriter—M.
A. Cleek, Spo¬

Commercial

•

city.

Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common

Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp.,
Washington, D. C.

mon

St., Omaha, Neb.

same

.

(par

55

Inc.

Sept.

(letter

19

of

notification) 12,000 shares of com¬
(no par) to be offered to
employees under
incentive restricted stock
option and purchase plan.
Price—At 85% of the mean

mon

stock

an

between the

quotation at which
sold

on

the common
the American
Stock

stock

Exchange

on

granting of the option, which
expires
Proceeds—For general

high and low

shall

have

been

the date of the

on Nov.
16, 1955.
corporate purposes.
Office—47
West 34th
Street, New York, N. Y.
Underwriter—None.
Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of
common
stock (par 10
cents). Price—At the market.

Proceeds—To

stockholder.

a

selling

Office—Corpus Christi, Texas. Underwriter

—None.

Cortez Uranium &

Mining Co., Denver, Colo.
May 27 (letter of notification)
3,000.000 shares of

NEW
October 6

ISSUE

(Thursday)

(Bids

11

EDTi

a.m.

130,410

sha:ts

19

Peabody

-—Debentures

&

Co.)

$30,000,000

Rochester

Telephone

(Ottering

Dixon

(Friday)

(Lee

Corp.—:

Chemical

Higginson Corp.
bonds

Common

to

stockholders—may be underwritten
First Boston Corp.) 195,312 shares

by

The

October 10

National

(Monday)

(Eastman,, Dillon & Co.)

Copperweld

Steel

Systems,

Co.)

230,000

175.000

shares

(Offering

Southwestern
(Ottering

Financial

to

Pierce

300,000

co.i

Corp.—_—

Common

stockholders—underwritten
Co.

&

and

Russ

&

Co.)

H.

Lederer

Co.,

Inc.

shares

McGrath Securities

(Ackerson-Hacicett

Preferred
$500,000

Corp

Co.)

Common

$1,200,000

11

EDT)

a.m.

Bonds

$15,000,000

Common

stockholders—underwiitten

October 20

Houdry

Process

(Paine,

(Thursday)
Common

Jackson

&

Curtis)

(Bids

40,000

shares

$6,555,000

$600,000

October

24

(Monday)

International Metals Corp

Continental

Production

(First

Spray

Cotton

of

(Gearhart

(Tuesday)

Corp

California

Debens.

Co.)

Common
EDT)

p.m.

Otis,

Inc.)

American

Motorists

$400,000

Common
200,000

Pacific Gas & Electric Co
October

12

(Probably

(Wednesday)

Consolidated Freightways, Inc
(Biyth & Co.,

Inc.)

Common

(Bids

&

Co.;

First California

William R. Staats &
Co.) 75,940 shares

Co.;

to

13

(Ottering

Mines, Inc.—
&

Co

Bonds

invited)

11:30

Bonds
EDT)

Brothers

Co.)

-Common

Indianapolis Power

28

Life

& Light Co

(Monday)

Southern

&

Kordite Corp,

Co.)

and

340,000

Rauscher,

Bonbright

R.

to

Co.)

&

November 9
Common

130,000

Co.)

200,000

(Bids

(Bids

11

&

Co.)

& Tel.

$500,000

Co

EDT)

a.m.

(Garrett

Brothers,

Yellowknife Uranium
(Geariiart

&

&

Corp

(A.

G.

Becker

1,200,000

Common

Inc.)

&

F.

Hawaii

Lau

Blower

Minute

Maid

(Merxill

United

Aircraft

'

•

"

'

Co.)

&

Co.

Inc.i

205,000

to

to

Fenner

&

Beane)

Corp.-

■■■

(Bids

San Diego Gas &
(Bids

$8,030,000

be

stockholders—underwritten

invited)




approx.

$8,500,000

Empire State Bldg., same city.
★ Deerfield Gas Production
Co., Wichita, Kan.
Sept. 30 this company, together with
Kearney Gas Pro¬
duction Co., filed
935,999 units of beneficial interest in
Hugoton Gas Trust, to be made
by means of warrants

be

to

Kansas-Nebraska

Natural Gas Co.,
Inc., and its eligible employees.
per unit. Proceeds—For
retirement

tion

Price

of indebtedness
by first mortgages; balance for
payment of obli¬

and

expenses of the
for liquidation

two companies in
liquida¬
distribution to stockholders.

Underwriters—The First Trust Co., of
Lincoln, Neb. and
Cruttenden & Co.,
Chicago, 111.
ir Delta Minerals Co., Casper,
Wyo.
Sept. 20 (letter of notification)
600,000 shares of non¬
share.

common

stock (par five
cents). Price—50 cents
to mining oper¬

Proceeds—Expenses incident

ations. Office—223
City and County Bldg., Casper,
Wyo.
Underwriter—The Western Trader &
Investor, Salt Lake
City, Utah.

Detroit Steel Corp.
Aug. 30 filed 503,155 shares of common stock
(par $1),
being offered for subscription by common
stockholders
of record Sept. 22 on the basis
of one new
sharq for each
five shares held (with an
oversubscription privilege);
rights to expire on Oct. 10.
Portsmouth Steel
Corp.,
owner
of about 24.4% of
outstanding stock, will pur¬

chase any unsubscribed shares. Price
Proceeds — To help retire RFC note.

$12 per share.
Underwriter

—

None.

—

Uranium Corp., Salt Lake
City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent
per share).
Pro¬

Co.,

Co.__—Common
250,000

shares

Co

invited)

Debentures
$30,000,000

Bonds

—

invited)

same

city.

Dix

Uranium Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290

University

Weber

(Wednesday)

Investment

Ave., Provo, Utah.
Co., Provo, Utah.

Dixon Chemical &

Sept.

28

filed

Underwriter

—

Research, Inc. (10/19-20)

$2,250,000 6%

first mortgage bonds due
225,000 shares of common stock (par $1) to be
offered in units of $500 of bonds and 50
shares of stock.
Price—To be supplied by amendment.
Proceeds—For

$7,500,000

(Tuesday)

Electric'Co

11:30

a.m.

Bonds

EDT)

$18,000,000

(Tuesday)

(Bids

to

be

invited)

Preferred

of plant,
etc.; for acquisition of Dixon
Chemicals, Inc.; and for working capital. Office—Clif¬
ton, N. J. Underwriters—Lee Higginson Corp. and P. W.

Dome Uranium

Mines, Inc., Denver, Colo.
(letter of notification) 1,300,000 shares of com¬
cent). Price 20 cents per share. Pro¬
ceeds
For expenses incident to
mining ^operations.
Office—352 Colorado National Bldg.,
Denver, Colo. UnJuly 12

$12,500,000

mon

by

December 14

Bonds

construction

Brooks & Co., Inc., both of New York.

Virginia Electric & Power do

Ripley & Co. Inc.) $24,246,900

to

be

(Territory of)

Preference

"

1,500,000 shares of com¬
mon stock.
Price
10 cents per share.
Proceeds—For
uranium and oil
exploration. Office—726 Paulsen
Bldg-

ceeds—For expenses incident to
mining activities. Office
Exchange Place, Salt Lake City, Utah. Underwriter
—Western States Investment

shares

Worcester County Electric Co
l

& Tel.

December 6

common

Harriman

Inc.)

-Debentures

Pierce,

acquisitions and advances to
subsidiary (Cuban
American Drilling &
Exploration Co.) for
drilling and
exploration costs.
Office—Dallas, Texas. UnderwriterDallas Rupe &
Son, Inc., Dallas, Texas.
Dawn Uranium & Oil
Co., Spokane, Wash.
June 16 (letter of
notification)

—15

(Tuesday)

Manufacturing
Co.

November 29

Common

$17,250,000

Corp

Lynch,

(Offering

&

Common

Allyn

$20,000,000

(Tuesday)

Co
C.

(A.

Peabody

—For

1975 and

International'Resources Fund, Inc
(Kidder,

invited)

Clerie

H.

Cuban American Oil Co.
Sept. 9 filed 2,000,000 shares of
common
stock (par 50
cents). Price—To be supplied
by amendment. Proceeds

North

$1,500,000

18

be

November 16

.Common
and

Tel.

(Bids

(Bids

October

to

com¬

Dinosaur

shares

Corp
Inc.

shares

$30,000,003

Oil

Inc.)

Otis,

Co.,

&

1,507,303

—Bonds

Marquette Cement
—Debentures

New England

Trans-National Uranium

EDT)

(Wednesday)

November 15

Preferred

(Bache

a.m.

shares

Corp.

Southern Bell Tel.

11

United Gas Corp

shares

Common

&

Common

stockholders—bids

shares

Corp

Williston

(Offering

(Tuesday)

Co.

Pierce

—

B.

Nortex Oil & Gas

Resistoflex

Corp.

„*

(George D.

(J.

Common

Securities

Common

(Offering to stockholders—underwritten by Lehman
Brothers;
Goldman, Sachs & Co.; and The First Boston Corp.) 209,685 shs.

$450,000

Companies, Inc
(Equitable

$15,000,000

(Friday)

November 1
October 17

of

—

assessable

$2,500,000

(Wednesday)

a.m.

October

Common

and

(Tellier

$25,000,000

(Thursday)

stockholders—underwritten by Lehman
Biyth & Co., Inc.) 160,000 shares

to

Inc.)

Long Island Lighting Co

Louisville Gas & Electric Co

Rio de Oro Uranium

Gas
be

shares

Preferred

Co.,

October 26

and

(Bids

October

&

Office—404

par
(six cents per share). Pro¬
mining operations. Office
1026 Kearns
Bldg., Salt Lake City, Utah.
Underwriters—Potter In¬
vestment Co., and
Mid-America Securities, both of Salt
Lake City, Utah.
"

per

Common

Eich'.er

Biyth

Natural

100,000 shares

Market Basket
(Eateman,

Wisconsin

com¬

share.

Price—At

gations and

Co

underwriting)

2,610 shares

per

For

—

—$4

(Tuesday)

Insurance

(Offering to stockholders—no

cents

notification) 5,000,000 shares

stock.

ceeds

secured

October 25

Com.

Common

$8,737,C0J

Mills

(Bids 3

&

&

expenses.

to be issued to common
stockholders of

$300,000

Co.)

*

October 11

>.'•

-Equip. Trust Ctfs.

EDT)

noon

Price—10

—

Corp

Webber,

Common

Investment

&

Seaboard Air Line RR.„

Corp.)

Uranium Technicians Corp
•

Noel

$2,250,000

by The First Boston
Brothers; Wertheim & Co.; and Merrill
Lynch, Pierce, Fenner & Beane) 303,407 shares

Rauscher,

by

770,000

Inc.)

s.ock

Lehman

Common

and

Co.)

&

shares

Splendora Film Corp.
(J.

to

Common
&

Co.,

of

New York State Electric & Gas
Corp
Corp.;

shares

Inc.
Lemon

Noel

Alstyne,

(Bids

Pepsi-Cola Bottling Co. of Long Island
<Jonns:on,

&

shares

New York State Electric & Gas
Corp

.......Common
&

Brooks

Consumers Finance

Common

Noyes

W.

225,000

Common

$300,000

Co

Inc

(Hemphill,

and P.
and

Alstyne,

(Van

(Dillon, Read & Co. Inc. and Riter & Co.)

Craig

Research, Inc.--Bonds & Com.

National Consumer Finance
Corp
(Van

Commonwealth Life Insurance Co

&

cent).

Cross-Bow Uranium
Corp.
Aug. 29 (letter of
mon

jr

October 7

one

University
Building, Denver, Colo.
Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.

(Wednesday)

Burlington Industries, Inc
(Kidder,

(par

Proceeds—For mining

October

Southern New England Telephone Co.—-Common

stock

mon

CALENDAR

New

(Wednesday)

Jersey Bell Telephone Co<
■

(Bids

to

be

invited)

$25,000,000

Debentures

stock (par one
—

.

•

-

Continued

on

page

56

56

The Commercial and Financial Chronicle

(1444)

-Continued from page

ceeds—For mining expenses. Office—515 Deseret Bldg.,
Salt Lake City, Utah; Underwriter — Moab Brokerage

55

derwriters—R. L. Hughes & Co.,
W. Allen & Co., Cheyenne, Wyo.

Denver, Colo, and G.

Midland, Mich.
Aug 5 filled 200,000 shares of common Stock (par $5)
being offered to employees of company and certain of
its subsidiaries and associated companies. Subscriptions
Chemical

Dow

Co.,

_

Sept. 30. Price—
$47 per share.
Proceeds—For general corporate pur¬
poses.
Underwriter—None.
be accented

will

from Sept. 6 through

Uranium Co., Salt Lake City, Utah
Qept 19 (letter of notification) 30,000,000 shares of non¬
assessable common stock. Price—At par (one cent per
chare).
Proceeds — For expenses incident to mining
activities. Office—214 East 5th South, Salt Lake City,
-Utah.
Underwriter—Valley State Brokerage, Inc., Las
Eagle Rock

Vegas, Nev.

Insurance Co. of New York
of notification) 5,239 shares of common
5tock (par $5.50) being offered for subscription by stock¬
holders of record Oct. 1, 1955 at rate of one new share
for each 10 shares held; rights to expire on Nov. 15, 1955.
Price—$35.50 per share.
Proceeds—For expansion and
working capital. Office—386 Fourth Avenue, New York
Sept. 20 (letter

Underwriter—None.

16, N. Y.

if Electro Refractories & Abrasives Corp.
Sept. 27 (letter of notification) 10,000 shares of common
stock (no par) to be offered for subscription by common
stockholders of record Sept. 30 on the basis of one new
14 shares held; rights to expire on Oct.
$16.50 per share. Proceeds—For working

for each

share

Price

26.

—

Gallina Mountain Uranium Corp.
July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
Proceeds—For

capital. Office — 344 Delaware
Underwriter—None.
'■

Ave., Buffalo 2, N. Y.

Packing Corp., Elkhart, Ind.
Sept. 20 (letter of notification)
25,000 shares of 6%
cumulative preferred stock being offered by directors to
-a selected group.
Price—At par ($10 per share). Pro¬
ceeds
For general corporate purposes. Office — 3535
Hammon Ave., R. R. No. 1, Elkhart, Indiana. Underwriter
* Elkhart

mining expenses. Office—82 Beaver St.,
Underwriter
Prudential Securities Corp.,

New

York.

same

address.

General

'
Aug. 26 (letter of notification) 50,000 shares of
Guaranty

(par

$2.50)

Insurance

being

offered

Co.

for

common

subscription

by

stockholders of record Aug. 25, on the basis of one new
for each two shares held (with an oversubscrip¬

share

per

privilege); rights to expire on Oct. 15. Price—$6
share. Proceeds—To increase capital and paid-in

Office—130 Park Avenue, North, Winter Park,
Fla.
Underwriters
Security Associates, Inc., Winter
Park, Fla.; Grimm & Co., New York City; Beil & Hough,
surplus.

—

Inc., St. Petersburg,
Inc., Orlando, Fla.

Fla.;

and

First Florida

Investors,

Gibraltar Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For expenses

incident to mining. Office—701
Aurora, Colo. Underwriter—Robert J. Connell, Inc., Denver, Colo.
Moline St.,

Glenwood Mining & Uranium Corp.
July 29 (letter of notification) 1,000,000 shares of com¬
mon
stock.
Price—30 cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter —

Peters, Writer & Christensen, Denver, Colo.

—

—None.

Empire Southern Gas Co., Fort Worth, Texas
(letter of notification) 12,000 shares of common
<tock (par $5) being offered for subscription by com¬
mon stockholders of record Aug.
19 on the basis of one
new
share for each 16 shares held (with an oversub¬

Aug. 4

Price—
share. Proceeds—For construction of pipeline.
2509 West Berry Street, Fort Worth, Texas.

scription privilege); rights to expire on Oct. 3.
$21

per

Office

—

Underwriter—None.

Gob Shops of America, Inc.
July 27 (letter of notification) 99,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For gen¬
eral

Amusement Corp., Washington, D. C.
(letter of notification) 50,000 shares of 6%

20

Sept.

cumulative participating class B common stock.
At

Price—

($1 per share). Proceeds — For retirement of
debts and improvement of drtve-in theatre.
Office—c/o
Donald C. King, Pres., 2216 Nichols Ave., S. E., Washr
par

ington, D. C.

Underwriter—None.

Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
ctock

(par 50 cents). Price—$1 per share. Proceeds—
mining expenses. Office—2320 Sbuth Main Street
Lake City, Utah.
Underwriter — Eliason, Taylor*.
Cafarelli Co., Las Vegas, Nev.

For

Salt

Farm

Family Mutual Insurance Co., Albany, N. Y.
June 28 filed $1,500,000 of 5% debentures to be offered
directly to members of the American Farm Bureau
Federation
local

and

to

State Farm

Bureau

Federations

and

organization.

Price—At 100% of principal amount
Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
(in denominations of $250 each).

ether state laws.

if Financial
Oct.

3

Fund, Inc.
37,500 Systematic (Periodic Payment)
Plans and 8,000 Cumulative (Fully-Paid)
Certificates. Office—Denver, Colo.

vestment

In¬

In¬

Pitt

Packaging International, Inc.
June 30 filed 300,000 shares of common stock (par 100),
cf whidh 250,000 shares of for account of company and
50,000 shares of five selling stockholders. Price—$3 per
share.
Proceeds—For working capital; for exploitation
cf "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
Fowler Telephone

Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,
Insurance

Co., Berkeley, Calif.
June 6 filed 1,000,000 shares of common stock (par $10).
JPrice—$22 per share. Proceeds—For capital and surplus.
•Bfisiness—All insurance coverages, except, life, title and
mortgage.
Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.
Fremont Uranium Co., Salt Lake City, Utah

Aug. 1 (letter of notification) 15,00.0,000. shares of com¬
stock. Price—At par (one cent per share).
Pro¬

mon




per share.
Proceeds—To reduce bank loans.
Underwriters—Lee Higginson Corp. and White, Weld &
Co., both of New York; and William Blair & Co., Chi¬

111.

cago,

if Howard Cooper Corp. of California, Eureka, Calif.
Sept. 23 (letter of notification) 300,000 shares of common
stock.

Price—At par ($1 per

eral corporate purposes.

Calif.

share). Proceeds—For gen¬
Office—2616 Broadway, Eureka,

Underwriter—None.

Inc.,

Sept.

of

26

(letter

cumulative

Seattle, Wash.
notification) 10,000

preferred

stock.

Price

—

shares
At

of

$1.25

($25

par

per

share).

Proceeds—To increase working capital. OfficeDexter Horton Bldg., Seattle, Wash. Underwriter—None.
Hunt Uranium Corp., Green River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of

derwriter

Elmer

K.

Aagaard; 323

Newhouse

Bldg.,

City, Utah.

Indian

Sept. 6

Monument

Uranium

Mining Corp.
3,000,000 shares of com¬
Price—10 cents per share.

(letter of notification)

stock

mon

par (25 cents per share).
Pro¬
incident to mining activities. Un¬

expenses

—

Salt Lake

com¬

Price—At

stock.

mon

ceeds—For

Proceeds

(par

one

cent).

For expenses

incident to mining activities.
Byington Building, Reno, Nev. Underwriter
Dineley, same address.

—

Office—205

—Richard L.

Industrial

Hardware Mfg. Co.
(amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock
(par 50 cents),
of which 85,000 shares are to be sold to
Seymour and'

May 12

Bernard

plied

Offerman at $5 per share. Price—To be sup¬
by amendment. Proceeds—To purchase Hugh H.
Co. and Wirt Co. Underwriters—Hallowell, Sulz¬

Eby
berger & Co., Philadelphia; and Baruch Brothers & Co*
Inc. and Weill, Blauner & Co., Inc., both of New York.
Inland Oil & Uranium Corp.,
Denver, Colo.
July 18 (letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price — 25 cents per share.

Proceeds—For expenses incident to oil and gas activities.
Office—3975 East 58th Ave., Denver, Colo. Underwriter
—Shaiman &

Co., Denver, Colo.

if International Atomic Devices Corp.
Sept. 28 (letter of notification) 12,000 shares of common
stock (par $10). Price — $25 per share. Proceeds—For
working capital. Office — 216 Hutchinson St., Hightstown, N. J.

Underwriter—None.

International

Investors Inc., New York

Aug. 23 filed 200,000
Price—At market.

Underwriter—None.

shares of capital stock

Proceeds—For

(par $1).
Business

investment.

invest in foreign securities of the free world out¬
side of the United States. Underwriter—I. I. I. Securi¬

Corp., Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17 Army Way, Ogden,

—To

Utah.

Oct.

Half Moon Uranium

Underwriter—United

Intermountain

Brokerage

Corp., Ogden, Utah.
i( Handy & Harman
Sept. 30

(letter of notification) 7,400 shares of common
Price—$6.75 per share. Proceeds—For
general corporate purposes. Business—Dealers in silver
and gold bullion, specie and bonds.
Office—82 Fulton

stock

(par $1).

St., New York 38, N. Y.

Underwriter—None.

Hawk Lake Uranium Corp.,
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share; Proceeds — For mining
expenses, etc.
Underwriter—DoVbs Si Co., N«*w York
City, will act as agents.
Hilo Electric

ties

Corp., 76 Beaver St., New York, N. Y.

if International Metals Corp.

(10/24-28)

filed

4

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—(fo finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary*
and to discharge note.
Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
International

Resources

Fund, Inc.' (10/18)

Sept. 23 filed 3,000,000 shares of common stock (par one
cent). Price—$5.75 per share. Proceeds — For invest¬
ments. Business—To invest in U. S. and foreign

in

ties

the

natural

resources

iield.

securi¬

Underwriter—Kid¬

der, Peabody & Co., New York.

if "Isras"

Israel-Rassco Investment Co., Ltd..
Price—At par (100
payable in State of Israel Indepen¬

Sept. 28 filed 9,000 ordinary shares.

Light Co., Ltd., Hilo, Hawaii
Aug. 1 filed 25,000 shares of common stock being offered
for subscription by stockholders of record
Sept. 5 on the

Israel pounds each)

basis of

writer—Rassco Israel

shares

share for each five shares; unsubscribed
first offered to employees at rate of five

one new

to

be

shares for each full year of

public;

rights

to

expire

employment; then to genera]

on

Oct.

10.

Price—To

stock¬

holders and

employees, at par ($20 per share); and to
public, at prevailing market price $28 per share on Aug.
22, 1955). Proceeds — For expansion and improvement.
Underwriter—None.

Co., Trenton,

N. J.
Sept. 26 (letter of notification) 30,000 shares of 5% cu¬
mulative convertible
preferred stock.
Price—At par
($10 per share) and accrued dividends. Proceeds—For
improvements and general corporate purposes.
Office
—Lower

Ferry Road, Trenton, N. J.
E. Wetzel & Co., same city.

Underwriter—W.

Acceptance Corp., Salt Lake City, Utah
(letter of notification) $300,000 of 25-year 6%

Sept. 1
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of
$1,000, $500 and $100). Pro¬
ceeds—For working capital.
Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.
Home Oil Co., Ltd.,
Calgary, Canada
Sept. 26 filed 1,500,000 shares of class A stock and 3,793,231 shares of class B stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock
on

the

basis

of

one

share

of

either class A

or

class

B

stock in

exchange for each two Federated shares. Stock¬
will

vote

Dec.

6

on

approving

acquisition

of

assets of Federated.

—

Household

Finance

Corp.

share.

per

activities.
Colo.

incident to mining
St., Cortez,
Bay Securities Corp., New York,

Proceeds—For
Office

—

Underwriter

—

326

expenses

West

Montezuma

New York.

Kachina Uranium Corp., Reno, Nev.
May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceed!
—For mining expenses. Office—206 N. Virginia St., Reno,

Nev.

Underwriter—Whitney, Cranmer & Schulder, Inc*

Denver. Colo.

See Deerfield Gas Production Co. above.

Kidde (Walter) & Co., Inc.
Sept. 7 filed 53,700 shares of common stock (par $2.50),
being offered for subscription by stockholders of record

Sept. 20, 1955, at the rate of one new share for each
eight shares held; rights to expire on Oct. 13, Price—

$16

per

share.

held; rights to expire

on

Oct. 17.

Proceeds—For

reduce short-term debt.

working

capital

and to

Office—Belleville, N. J. Under¬

writer—Carl M. Loeb, Rhoades & Co., New

York, N. Y.

★ King Bros. Productions, Inc., Hollywood, Calif.
Sept. 21 (letter of notification) 100,000 shares of com¬
mon stock (par
$1). Price—At market (estimated at $2.75,
per

and

share).

Proceeds—For production of motion pictures

in connection with business generally.

Hollywood, Calif.

Office—8383
Underwriter—None.

Kirby Oil & Gas Co.
July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬
pany

and 100,000 shares for the account of the Murchi-

son-Richardson financial
be

Sept. 9 filed 341,380 shares of common stock ($9 stated
value) being offered for subscription by common stock¬
holders of records Sept. 30, 1955 on the basis of one new
share for each 20 shares

Aviv, Israel. Under¬
Corp., New York.

Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents

Sunset Blvd.,

Houdry Process Corp. (10/20-24)
Sept. 22 filed 40,000 shares of capital stock (par $10).
Price—To be supplied by amendment.
Proceeds
To
selling stockholder. Underwriter—Paine, Webber, Jack¬
son & Curtis, Boston,
Mass., and New York, N. Y.
•

dence Issue Bonds only. Office—Tel

if Kearney Gas Production Co.

Home

holders

Omaha, Neb.
Freedom

in oil and gas interests.

Homasote

Industrial

filed

vestment

Fort

Underwriter—None.

underwriter.

as

Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬

Erie County Investment

if Evergreen

Office—Pawtucket, R. I. Un¬
& Co., Inc., New York, has

Blauner

Gulf Coast

ests

Co., Sandusky, Ohio
Aug. 10 (letter of notification) 7,500 shares of cumula¬
tive preferred stock (par $20) and 7,500 shares of com¬
mon stock (par $10), to be offered in units of one share
of each.
Price—$35 per unit.
Proceeds—For working
capital to finance general expansion.
Office—169 East
Washington Row, Sandusky, Ohio.
Underwriter — The
First Cleveland Corp., Cleveland, Ohio.

corporate purposes.

derwriter—Weill,
withdrawn

Price—$24

if Hughbanks,

Mining & Oil, Inc., Kemmerer, Wyo.
Aug. 1 (letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents). Price — 25 cents per share.
Proceeds—For oil and mining expenses/ Underwriter—
Empire Securities Corp., Las Vegas, Nev.

tion

Thursday, October 6, 1955

.

—

Gas Hills

stock

Eastern Life

•

Co., Westera States Investment Co., Potter Investment
Cq„ Ivlld-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

..

supplied

interests of Texas.

Price—To

by amendment.

Proceeds—To retire out¬
standing bank loans and for exploration of oil and
gas
leases. Underwriters—Allen & Co., New York: and Rauscher.

Pierce

&

Co.,

poned indefinitely.

Dallas,

Texas.

Offering

—

Post¬
.

Volume 182

Number 5470

.

The Commercial and Financial Chronicle

..

•

Kordite Corp., Macedon, N. Y. (10/17)
Sept. 21 filed 130,000 shares of common stock (par $1),
of which 80,000 shares are to be offered
by the company
and 50,000 shares by Richard M. and Howard J.
President and

Vice-President, respectively.

be

supplied

by

Proceeds—To

general

amendment

finance

corporate

(around

Price—To
share).

per

development of business and for
Underwriter

purposes.

D. B. Bonbright &

$13.75

Samuels,

George

—

Co., Rochester, N. Y.

Landa Oil Co.,

Dallas, Texas
Aug. 19 (letter of notification) 70,000 shares of common
stock (par 10 cents) to be first offered for
subscription
by stockholders.
Price
To stockholders, $3.50 per
—

share; and to public $4.25

per

incident to oil and

penses

North Central

gas

share. Proceeds—For ex¬
activities. Office — 5738

Expressway, Dallas 6, Tex. UnderwriterCo., Dallas, Tex.

Central Securities

Lander Valley Uranium & Oil
Corp.
Aug. 15 (letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents).
Price—10 cents per share.
Proceeds—For

incident

expenses

to

mining

(1445)

Lyman-Farnsworth Corp.
May 6 (letter of notification as amended) 3,000,000 shares
of capital stock (par one cent). Price—10 cents per share.
Proceeds—For mining operations. Office—201 No. Main
St., Salt Lake City, Utah. Underwriter—Pioneer Invest¬
ments, Las Vegas, Nev.
★ Magna

Theatre

New

Corp.,

York

Sept. 29 filed 110,000 shares of common stock (par_five
cents) to be offered for subscription by common stock¬
holders
for

of

each

—To

Oct.

record

20

shares held.

interest

pay

26

at

the rate

Price—$5

outstanding

on

of

per

6%

one

new

share.

share

Proceeds

debentures, and

for

general corporate purposes.
Underwriter —
United Artist Theatre Circuit, Inc. of New York.

The

Market Basket, Los Angeles, Calif. (10/12)
Sept. 21 filed 75,940 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—For

new

equipment and other general corporate

pur¬

Underwriters—Bateman, Eichler & Co. and Wil¬
R. Staats & Co., both of Los Angeles,
Calif.; and
First California Co., San
Francisco, Calif.

poses.

liam

activities.

Office—c/o Warren E. Morgan, President, 1705 East First

South, Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.

Mascot Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price — 62% cents per share.

it Lau

Proceeds —For

Oct.

Blower Co.,

4

filed

Dayton,

Ohio

(10/18-20)

—

To

be

Medical Abstracts,

Inc., Philadelphia, Pa.
(letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western
Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
Bliedung, Washington, D. C.

June

Leborn Oil & Uranium Co.

June 8

(letter of notification) 6,000,000 shares of capital
(five cents per share). Proceeds—
For mining expenses. Office — 124% South Main
St.,

stock.

Price—At par

LeCuno Oil

29

cents).

Corp., Jefferson, Texas

Office—415 Peterson St., Fort Collins, Colo. Underwriter

filed 450,000 shares of capital stock (par 10
Price—To be supplied by amendment. Proceeds

—Bay Securities Corp., 115 Broadway, New York, N. Y.

—For payment of liabilities and expenses incident to oil
and gas and mineral activities.
fornia

Co.,

Inc., San
pected in October.

Metallurgical Resources, Inc., New York
Sept. 12 filed 500,000 shares of 6% non-cumulative con¬
vertible preferred stock.
Price—At par ($2 per share).

Underwriter—First Cali¬

Francisco,

Calif.

Offering—Ex¬

Proceeds—For

it Lewisohn

Copper Corp., Tucson, Ariz.
(letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—To drive a tunnel and other expenses incident to
mining operations. Office—128 N. Church St., Tucson,

like number of shares of capital stock (par $1) of Neva¬
da Uranium Co. on the basis of one-for-one; and the
balance will

share).

operations.

publicly; 60,000 shares of common are to be of¬
fered for subscription by officers, directors, employees
and agents of this corporation, Atlantic Life Insurance
Co., The Lamar Life Insurance Co., and others; and
18,656 common shares and the 4,081 preferred shares
offered

b,y

stock of Atlantic Life
and

mon

14

shares

share of Atlantic

shares

000

of

preferred

common

common

of

for
be

to

com¬

each

outstanding
Price—For the 400,-

plus $15.

stock

sold

to

public and

Sept. 26 filed

100,000 shares of

Shreveport, La.
stock

common

(par 25

the

commencement

of

the

offering, after which
unsold shares will be offered to public. Price—$8.75
per
share to stockholders; $10 per share to public. Proceeds
—For expansion and working capital.
Underwriter—

Utah Uranium

•

Link-Belt

Co., Chicago,

III.
134,433 shares of common stock (par $5)
being offered in exchange for the common stock of
Syntron Co. at rate of 5.4 shares of Link-Belt stock for
12 filed

each Syntron share.

City, Utah.
Colo.

outstanding Syntron stock
deposited for exchange; but Link-Belt reserves the
right to declare the exchange effective if not less than
80% of Syntron shares are so deposited in exchange.
are

on

Mac

Uranium

for

Co.

mon

a.m.

Farmers

tinent

(EDT)

on

Co., New

Louisville Gas & Electric Co.
be

offered

of record Oct.

for
13

rate

of

held; rights to expire

supplied

by

program.

amendment.

Ky.

certain claims designated "Lower Claims Group."
—Salt Lake City, Utah. Underwriter—None.

up

common

one

on

stock

new

Morning Sun Uranium, Inc., Spokane, Wash.
14 (letter of notification) 700,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses.
Office — 415 Paulsen
Bldg., Spokane, Wash. Underwriter—Pennaluna & Co.,

(no par)

Nov. 1.

Price—To be

Proceeds —For

construction

Underwriters—Lehman Brothers and Blyth &

Co., Inc., New York.




.

same

stockholders

share for each

»

.

,

.

Office

June

to

(10/13)

common

subscription by
at the

10 shares
.

City,

mining expenses. Office — 706 Newhouse
Salt Lake City, Utah.
Underwriter—Mid-Con¬
Securities, Inc.. same city.

Monte Cristo Uranium Corp.

Oct. 26.

Sept. 22 filed 160,000 shares of
to

York

Mines, Inc.

(letter of notification) 6,000,000 shares of com¬
Price—At par (five cents per share). Pro¬

Aug. 19 filled 2,000,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For purchase of

Bids—Expected to be received at

Trust

held; rights to expire
share.

per

Proceeds

from American
eral

Oct. 28.

on

—

Toward

Price—At

par

($10G

repayment of advances

Telephone & Telegraph Co. and for gen¬

corporate purposes.

Underwriter—None.

★ National Consumer Finance Corp. (10/19)
Sept. 28 filed 50,000 shares of convertible preferred
stock.
Price—At par ($10 per share) and accrued divi¬
dends. Proceeds—To repay bank loans. Office—19 River
St., Stamford, Conn. Underwriter—Van Alstyne, Noel &
Co., New York.
it National Consumer Finance Corp. (10/19)
28 filed 200,000 shares of class A common stock
(par $1). Price—$6 per share. Proceeds — To selling

Sept.

stockholders.

Office

Underwriter—Van

19 River St., Stamford, Conn.
Alstyne, Noel & Co., New York.
—

Natural Power Corp. of

Sept.

America, Moab, Utah
notification) 306,000 shares of non¬
stock (par one cent). Price—$1 per
Proceeds—For expenses incident to mining ac¬

7

(letter

assessable
share.

tivities.

of

common

Underwriter—Western Bond & Share Co., Tulsa,

Okla.

Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Offiee—156 No. University I
Ave., Provo, Utah. Underwriter — Lindquist Securities,
Salt Lake City, Utah.
Nevada Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For expenses incident to mining activities.
Office—Professional Building, Winnemucca, Nev.
Un¬

derwriter—Shelley, Roberts & Co., Denver, Colo.
New Mexico Copper Corp.
Sept. 8 (letter of notification) $100,000 of 6% convertible,
bonds due Oct. 1, 1965 (to be convertible at
time at rate of $100 of bonds for 220 shares of com¬

debenture
any
mon

Price—At par. Proceeds — For mining ex¬
Office—Carrizozo, N. M.
Underwriter—M. J.
Washington, D. C.

stock).

penses.

Sabbath Co.,

Oil & Gas Co.

New Mexico

July 27 (letter of notification) 2,500,000 shares of com¬
mon stock (par one cent). Price—Three cents per share.
Proceeds
For general corporate purposes. Office —
Bethesda, Md. Underwriter—Lewellen-Bybee Co., Wash¬

ington, D. C.
it New York Business Development Corp.
Sept. 28 filed 10,000 shares of capital stock (no par).
Price—$100 per share. Proceeds — For working capital
and

general corporate purposes.

city.

Mortgage Associates, Inc., Philadelphia, Pa.
June 7 (letter of notification) 20,000 shares of 60-cent
convertible preferred stock (par $5) and 20,000 shares
jpfttommon stock (par 10 cents). Price—For preferred,
$10 per share; and for common, $2.50 per share. Proceeds
.

!

Office—Albany, N. Y„

Underwriter—None.
New York State Electric & Gas

Corp.

(10/19)

filed $15,000,000 of first mortgage bonds due
Sept. 1, 1985. Proceeds—To reduce bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
Sept.

21

able bidders: Halsey, Stuart

& Co. Inc.; Kidder, Peabody

Co.; Harriman, Ripley & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Blyth & Co.,
Inc. and Smith, Barney & Co. (jointly). Bids—Expected
to be received up to 11 a.m. (EDT) on Oct. 19.
&

•

York State Electric & Gas

New

Corp.

(10/19)

Sept. 28 filed 303,407 shares of common stock (no par)
to be offered for subscription by common stockholders
of record Oct. 18 on the basis of one new share for each

Price—To be
loans
First
Lehman Brothers; Wertheim & Co.; and

held; rights to expire on Nov. 3.

10 shares

supplied b,y amendment. Proceeds—To repay bank
and for construction program. Underwriters—The
Boston

Corp.;

Merrill Lynch,

Oil

Nortex

Pierce, Fenner & Beane.
& Gas Corp.,

Dallas

(10/17-21)

16 filed 200,000 shares of common
Price—To
be supplied
by amendment.

Sept.

purchase certain oil and

gas

>

stock (par $1).
Proceeds—To

properties and leasehold

development costs; to pay off
$450,000 promissory notes; and for general corporate
purposes. Underwriter—J. R. Williston & Co., New York.
interests; for drilling and

Ohio Valley

Airways, Inc., Cincinnati, Ohio

of notification) 70,000 shares of class
(par $1). Price—$3 per share. Pro¬
ceeds—To purchase and equip three helicopters.
Un¬
derwriter—Westheimer & Co., Cincinnati, Ohio.
Sept.

13

(letter

common

stock

stock.

Bldg.,

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc.
(jointly); W. C. Langlev & Co.; Smith, Barney & Co.;
Bank

Telephone & Telegraph Co. :
of capital stock (par $100),
being offered for subscription by stockholders of record
Sept. 27, 1955 on the basis of one new share for each live

Sept. 7 filed 486,881 shares

A

ceeds—For

reduction of bank loans. Underwriter—To be determined

11:30

Underwriter—Skyline Securities, Inc., Den¬

pay for development and driving drift and
exploratory drilling; and the remainder for working

June 6

it Long Island Lighting Co. (10/26)
Sept. 27 filed $15,000,000 of first mortgage bonds, series
H, due 1985. Proceeds—For construction program and

City

Brokers, Salt Lake City, Utah.

Monte Carlo Uranium

Underwriter—Skyline Securities, Inc.,

Baxter, Williams & Co.

States

—

Mich.

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—440 West 3rd
North, Salt

City, Utah.
Denver, Colo.

N.

capital, acquisition of additional properties, and unfore¬
seen
contingencies. Underwriter—Carr & Co., Detroit,

tal stock.

Lake

Mountain

—

equipment, to

Oct. 19, unless further

extended.

Little

At par ($1 per
incident to mining
Virginia St., Reno, Nev.~

Monogram Uranium & Oil Co.
Aug. 31 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. Proceeds — To make payment of
$675,000 to Four Corners Uranium Corp. under a pur¬
chase contract; to use $100,000 each to purchase mining

The exchange will become effective

exchange offer will expire

,

,

•

ver,

if 95% of the 24,895 shares of

The

139

Price

expenses

Mobile Uranium & Oil Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake

None.

Aug.

—

cash.

For

Moab Treasure Uranium Corp.
July 25 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—Five cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter ■—

cents) to be offered for subscription by present stock¬
holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to expire 45
days
from

Office

for

—

Mitchell Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.

employees, will be supplied by amendment. Proceeds—
To selling stockholders.
Underwriters—Equitable Se¬
curities Corp.; Nashville, Tenn., and Rauscher, Pierce &
Co., Inc., Dallas, Texas.
Life Underwriters Insurance Co.,

sold

it Minute Maid Corp. (10/18)
Sept. 28 filed $6,000,000 of 4% subordinated debentures
due Dec. 1, 1974. Price—To be supplied by amendment.
Proceeds—To Clinton Foods, Inc., who had received $17,300,000 of said debentures in partial payment for the
assets of Clinton's Snow Crop Division.
Underwriters—
Merrill Lynch, Pierce,
Fenner & Beane, New York;
and Newhard, Cook & Co., St. Louis, Mo.

common

the basis of 64 shares of

on

of

holders

to

company

be

Proceeds

Underwriter—None.

fered

be

acquisitions. Underwrite*®
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa.
\

of

it Mining Associates, Inc., Reno, Nev.
Sept. 28 (letter of notification) 198,450 shares of capital
stock, of which 111,750 shares are to be exchanged for a

Underwriter—George F. Breen, New York, N. Y.

to

—For construction loans and

,

Life Companies, Inc., Richmond, Va.
(10/17)
Sept. 19 filed 418,656 shares of common stock (par $1)
and 4,081 shares of convertible preferred stock (par
$25),
of which 340,000 shares of common stock are to be of¬

are

construction

plant; for research and
development; and for working capital. Underwriter—
M. S. Gerber, Inc., New York.

Sept. 22

Ariz.

15

Mesa-Loma Mining Corp., Fort Collins, Colo.
July 13 (letter of notification) 2,955,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.

Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
Aug.

mining activities.

Underwriter—Standard Securities Corp., Spokane, Wash.

205,000 shares of

common stock
(par $1).
supplied by amendment. Proceeds—To
selling stockholders. Underwriter — A. C. Allyn & Co.,
Inc., Chicago, 111.

Price

incident to

expenses

5*

Oasis Uranium & Oil Corp.,

Fort Worth, Texas

(letter of notification) 265,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—
For uranium and oil exploration. Office—Fortune Arms

June 8

Bldg., Fort Worth, Tex. Underwriter—Standard
ties, Inc., Salt Lake City, Utah.
Ottilia

Securi¬

Villa, Inc., Las Vegas, Nev.

16 (letter of notification) 3,000 shares of capital
stock.
Price—At par ($100 per share). Proceeds—For
Aug.

South 5th St., Las

Vegas, Nev.

Underwriter—Hennon &

Roberts, Las Vegas, Nev.

it Pacific Gas & Electric Co. (10/25)
4 filed 1,000,000 shares of redeemable first preferred
stock (par $25). Price—To be supplied by amendment.
Proceeds—To retire short term bank loans and for con¬
Oct

struction program.
ment

Underwriter—To be filed by amend¬
Co., Inc., San Francisco and Lew

(may be Blyth &

York).

Continued,

on

page

58

158

The Commercial and Financial Chronicle

(1446)

General Investing Corp., New York, N. Y., and Shaiman

Metals

International

Pacific

Pacific

Co., Salt Lake City, Utah.

Power &

Light Co.
Sept. 8 filed 30,000 shares of cumulative preferred stock
(par $100) to be offered initially only in Oregon, Wash¬
ington, Wyoming, Montana and Idaho. Price—To be sup¬
plied by amendment. Proceeds — To repay bank loans
and

for construction

Underwriters—Expected

program.

to be local dealers.

Pacific

Oil

Uranium &

Corp.

June 6

(letter of notification) 3,000,000 shares of com¬
stock (par two cents).
Price—10 cents per share.

mon

Proceeds

derwriter—None.

Co., Denver, Colo.

&

Uranium, Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake City, Utah.
Underwriter—
Guss Securities

per

&

Continued from page 57

For mining expenses. Office — 811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.

if Rare Earth Mining & Exploration Corp.
Sept. 23 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—Five cents per share.
Proceeds
For expenses incident to mining activities.
Office—908 American Bldg., Seattle, Wash. Underwriter
—None; sales to be offered through certain officers and
—

directors.
Real

Pacific Western Oil

Corp.

100,000 shares of

stock

(par $4.)
Price—At prevailing market price. Proceeds—To J. Paul
Getty, President. Underwriter—None.
common

Estate

Clearing House, Inc.
of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and 135,000 shares
of common stock (par five cents) to be offered in units
of two shares of preferred and one share of common
stock.
Price—$2.05 per unit.
Proceeds—For working
Sept.

14

(letter

capital, etc.
N.

Y.

12th

Office—161

West 54th

Underwriter—Choice

Street,

Securities

New

Corp.,

York,

35

East

Street, New York, N. Y.

—

Sept. 9 filed

if Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
procurement agreement to be offered to certain mem¬
bers of the general public who are acceptable applicants
and who are to become active
policyholders in the com¬

Price—$2

pany.

per

unit.

Proceeds—For

general

cor¬

,

if Paddock Of California, Los Angeles, Calif.
Sept. 28 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds — For
liquidation of bank loan and working capital. Office—
8400 Santa Monica
—T. R. Peirsol &

Panama

Blvd., Los Angeles, Calif. Underwriter
Co., Beverly Hills, Calif.

Minerals, Inc., S. A.

(Republic of

Panama)
June 30 filed 400,000 shares of common stock

(par $1).

Price—$1.25

per share. Proceeds—For mining expenses.
Office—Denver. Colo. Underwriter—None.

Pandora

Uranium Mines,

Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock (par one
cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.
Office—530 Main St., Groad Junction, Colo. Underwriter
—Columbia Securities Co., Denver 2, Colo, and Salt
Lake City, Utah.
if Park Enterprises, Inc., Aberdeen, S. D.
(letter of notification) 5,000 shares of class B
stock (no par). Price—$10 per share, Proceeds
—For construction costs and improvements. Office—313
Sept. 26

common

Citizens Bldg., Aberdeen, S. D.

Underwriter—None.

Pelican Uranium

Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
etock (par five cents). Price—10 cents
per share. Pro¬
ceeds— For

mining

South,

Lake

Salt

Oltice

expenses.

City,
Western Brokerage Co.,
Lake City, Utah.

—

68b

&ast

Zist

Utah.
Underwriter — TransNew Orleans, La., and Salt

Penn-Utah Uranium, Inc., Reno, Nev.
Aug. 4 (letter of notification); 2,000,000 shares of com¬
stock

mon

(par three cents).

Proceeds—For

Price—15 cents per share.
incident to mining activities.

expenses

Office—206 N. Virginia Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
•

Pepsi-Cola Bottling Co. of Long Island, Inc.

(10/10)
Sept. 20 filed 300,000 shares of common stock (par 25
cents), of which 80,000 shares are for account of com¬
pany
and 220,000 shares for account of Russell M.
Arundel, President. Price—To be supplied by amend¬
ment.

Proceeds—To retire

corporate purposes.

indebtedness; and for general

Office—Garden City, N. Y.

Under¬

writer—Johnston, Lemon & Co., Washington, D. C.
Permian Basin Uranium Corp.
June 2 (letter of
notification)
stock.

Price—At

par

640,000 shares of common
(10 cents per share). Proceeds—

For

mining costs. Office—613 Simms Building, Albu¬
N. Mex.
Underwriter
Western
Securities
Corp., Salt Lake City, Utah.

querque,

—

Petaca

Mining Co., Santa Fe, H. Mex.

Aug. 25 filed 450,000 shares of common stock (par 10
cents). Price—$1.75 per share. Proceeds—For
repayment
of loan and liquidation of
purchase obligations; to buy

equipment;

and for working capital.
Barrett Herrick & Co., Inc., New York.

Underwriter—

Pittman Drilling & Oil
Co., Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par
$5) and 60,000 shares
of common stock
(par 10 cents) to be offered in units of
one

share

of

each.

Price—$5

per

unit.

payment of note and working capital.
zens National Bank
Bldg.,

Proceeds—For

Office—420 Citi¬

Independence, Kan. Under¬
writer—Dewitt Investment
Co., Wilmington, Del.
if Postal Life Insurance Co., New York
Sept. 29 filed 145,500 shares of capital
stock, of which
100,000 shares are to be offered for subscription
by stock¬
holders at the rate of two

new

and

be

45,500 shares

stockholders.

are

to

Price—At par

shares for each share held
for account of selling

sold

($2

per

For

share).

Proceeds—

working capital, and other general corporate
pur¬
Underwriter—A. C. Allyn &
Co., Inc., Chicago, 111.,
and New York, N. Y.

poses.

Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of
stock.

Price—At

swimming

($25

par

pool,
organization and develoment expense. Office
—Bowie, Md. Underwriter—L. L. Hubble &
Co., Inc.,
Baltimore, Md.
"
course

and

Radium Hill

Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock
ceeds

(par
—

one

For

cent).

Price—32 cents

expenses

Office—Bryant

Bldg.,




incident

Montrose,

to

per

porate purposes.

Underwriter—None; to be offered by
Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬

Leo
tees.

★ Republic

Electronic

Industries

Corp.
Sept. 26 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For expansion and working capital. Business—Manufac¬
turers of precision electronic test equipment.
Office—
31 West 27th St., New York City.
Underwriter—Keene
& Co., Inc., New York, N. Y.
Resistoflex Corp., Belleville, N. J.
(10/17)
Sept. 27 filed 20,000 shares of convertible preferred stock
(par $25). Price—To be supplied by amendment. Pro¬
ceeds

For

leasehold

improvements,

other expenses in connection with the

equipment
leasing of a

new

plant at Roseland, N. J.

—

Bache

Co.,

—

Underwriter

&

and

New York.

Rextab

Sept.

Laboratories,

(letter of notification)
stock.
Price—At par ($1

mon

250,000 shares of com¬
per share).
Proceeds—

For

machinery, labor, materials, advertising and working
capital. Office—140 N. Virginia St., Reno, Nev. Under¬

writer—None.
Rio de Oro Uranium Mines, Inc.
(10/13)
Aug. 15 filed 3,000,000 shares of common stock (par one
cent).
Price—15 cents per share.
Proceeds—For ex¬
penses incident to mining
operations.
Office—Grand
Junction, Colo. Underwriter—Tellier & Co., JerseyGity,
N. J., on a best-efforts basis.
If 85% of issue is not sold,

monies will be refunded.
Rochester Telephone Corp. (10/7)
Sept. 14 filed 195,312 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record Oct. 6

on

the basis of

one

new

share for each

four shares

held; rights to expire on Oct. 24. Price—To
supplied by amendment. Proceeds — To repay bank

be

loans and for
Boston

construction.

new

Underwriter—The First

Corp., New York.

share.

Pro¬

mining operations.
Colo. Underwriters—

share.

San Juan Uranium

Aug.

19

common

share.

N.

Glickstein, of New

Exploration, Inc.
925,000 shares of

notification)

(letter of

assessable
per

Thursday, October 6, 1955

.

Proceeds—For racing plant construction. Un¬

Hyman
City, is Vice-President.

York

non¬

stock (par one cent).

Price—12 cents
incident to mining

Proceeds—For expenses

activities. Office
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
—

Sandia Mining & Development Corp.
Sept 9 (letter of notification) 3,000,000 snares of capital
stock

(par

ceeds

cent). Price—10 cents
mining expenses. Office

one

For

—

per
—

share.

Pro¬

Simms Bldg.,

Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
Santa Fe Uranium & Oil Co., Inc.
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations. Office—416 Indepen¬
dence Bldg., Colorado Springs, Colo.
Underwriter—Co¬

lumbia Securities Co., Denver, Colo.

Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
by amendment. Proceeds — For
prepayment of outstanding 5Vz% sinking fund bonds due
1970; balance for general corporate purposes, including

Price—To be supplied

additions and improvements and working capital. Under¬
writer—Barrett Herrick & Co., Inc., New York City, ;

if Shenandoah Gas Co., Lynchburg, Va.
19 (letter of notification) 1,000 shares of common
stock (par $1). Price—$7 per share. Proceeds—To James
Sept.

L.

Carter,

President, who is the selling stockholder.
Krise Bldg., Lynchburg, Va. Underwriter—
Scott, Horner & Mason, Inc., Lynchburg, Va.

Office—315

Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses.
Office — 6 Kirby St.,
Moab, Utah. Underwriter—Skyline Securities Inc., Den¬
ver, Colo.
June 20

mon

Silvaire Aircraft

Inc., Reno, Nev.

21

June

&

Uranium

Co.

17

(letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price —10 cents per share).

mon

Proceeds—For

mining operations. Office—Fort Collins,
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
Denver, Colo
Colo.

Sinclair Oil

Sept.

filed

23

Corp.

shares of common stock, to be
officers and other employees of the
and of certain of its subsidiaries pursuant to
options granted on April 14, 1954, under the company's
amended stock purchase and option plans. Price—$14.25
per share.
offered

200,200

certain

to

company

Smith-Dieterich Corp.
Sept. 15 (letter of notification) 17,355 shares of common
stock (par $2.50) to be offered for subscription by stock¬

holders of record Sept. 14, 1955 on the basis of one new
share for each five shares held. Price—$5.50 per share.
Proceeds—To repay

tal.

-Office—50

certain loans and for working capi¬

Church

St., New York,

N.

Y.

Under¬

writer—None.

Rocket Mining Corp., Salt Lake City, Utah

July
ital

15

(letter of notification) 6,000,000 shares of cap¬
(par one cent). Price—Five cents per share.

stock

Proceeds—For
mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.
ca

Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents). Price—At market (total not to
exceed $150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.
Saint Anne's Oil Production Co.

May 9 (letter of notification) 20,000 shares of common
stock (par $1) to be first offered to stockholders. Price
—$6.25

per

share.

related activities.

Proceeds

—

For oil and mineral and

Office—Northwood, Iowa. Underwriter

—None.
St. Croix

Paper Co., Boston, Mass.
Sept. 2 filed 125,714 shares of common stock (par $12.50)
being offered for subscription by common stockholders
the basis of

on

as

one

new

share for each 3%

shares held

of Sept.

per
ance

22; rights to expire on Oct. 6. Price — $29
Proceeds—Together with funds from insur¬
company and a bank, to be used for expansion pro¬

share.

gram.

Underwriter—Estabrook & Co., Boston and New

York.

Regis Uranium Corp., Denver, Colo.
Aug. 15 (letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds

For expenses incident to mining activities.
Office—2285 South Jackson,
Denver, Colo.
Underwriter
—M. J. Reiter Co., New York, N. Y.
•

Southeastern Fund, Columbia, S. C.

{

Sept. 6 filed $300,000 of 15-year 5V2% subordinated sink¬
ing fund debentures. Price—100% of principal amount.
Proceeds—For general operating purposes.

Underwriters
Co., Fayetteville, N. C., and Gordon Meeks
& Co., Memphis, Tenn.

—Powell

—

San Jacinto

Southeastern

<

Price—$5

per

Underwriters

Fund, Columbia, S. C.
common stock

60,000 shares of
share. Proceeds
Powell

—

&

—

(par $1).

For working capital.

Co., Fayetteville, N. C., and

Gordon Meeks & Co., Memphis, Tenn.
Southern Bell Telephone &

Telegraph
(10/17)
Sept. 28 filed $30,000,000 40-year debentures due Oct.
15| 1995. Proceeds — To repay advances from parent,
American Telephone & Telegraph Co., and for general

if Co.

corporate purposes. Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.
Bids—Expected to
be received up to

11

(EDT)

a.m.

Oct. 17.

on

if Southern Berkshire Power & Electric Co.
Sept.

19

stock

to

holders

shares

(letter of
be

held.

chased

by

notification)

offered
the

on

for

basis

An

1,220 shares of capital
subscription by minority stock¬

of

one

additional

new

13,964

share

for

each

shares will

be

two
pur¬

New

England Electric System, the parent,
owns
27,928 shares (91.965%) of the out¬
standing shares and has offered to purchase the hold¬
ings of all minority stockholders at $25 per share (in¬
cluding 2,256 shares or 7.43% owned by New England
now

Gas & Electric Association.
held

by 11 holders.

ceeds—For

new

The balance of the shares is

Price—At par ($25 per share).

construction.

Pro¬

Underwriter—None.

Petroleum

Corp., Houston, Texas
Sept. 20 filed 500,000 shares of common stock (par $1).
Price—$15 per share. Proceeds—For payment of short
porate purposes.

&

Sept.; 6 filed

which

St.

term loans and other

preferred

share). Proceeds—For
club furnishings and equipment, golf
per

..

indebtedness; and for general cor¬
Underwriter—None, sales to be made

privately through officers of the

company.

if San Juan Racing Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per share, of 200,000 shares for
subscription by
stockholders of record April 30, 1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to be

represented by voting trust certificates, at 58.8235 cents

if Southern Co.

(11/1)

Sept. 30 filed 1,507,303 shares of common stock (par
$5) to be offered for subscription by common stockhold¬
ers

of

each
rants

be

record

12

are

named

bank

Nov.

1

on

the basis of

one

new

share for

shares

held; rights to expire on Nov. 22; War¬
expected to be mailed on Nov. 2. Price—To

by

loans

company

and

for

on

Oct. 31.

investment

in

Proceeds—To
additional

repay
stock of

subsidiary companies. Underwriter — To be determined
competitive bidding.
Probable bidders: The First
Boston Corp., Ladenburg, Thalmann & Co., Carl M. Loeb,
Rhoades & Co. and Wertheim & Co. (jointly); Blyth &

by

Co., Inc., Bear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬

ties Corp. (jointly); Lehman Brothers; Morgan Stanley

Volume

182

Number 5470

.

.

The Commercial and Financial Chronicle

.

& Co.; Kidder, Peabody &
Co., and Merrill Lynch,
Pierce, Fenner & Beane. Bids
Tentatively scheduled
—

to be received up to 11

(EDT)

a.m.

on

Nov. 1.

it Southern Discount Co., Atlanta, G.a.
Sept. 16 (letter of notification) $250,000 of subordinated
5% debentures, series G. Price—At par
(in denomina¬
tions of $500 and $1,000). Proceeds—For
exchange for
outstanding debentures and working capital. Office—724
Healey Building, Atlanta, Ga. Underwriter—None.
Southern

Sept. 14

com¬

stock

(par 10 cents). Price—$1 per share. Proceeds
—For expenses incident to
mining activities. Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th
Avenue,
mon

Underwriter

Phoenix, Ariz.
Atlanta, Ga.
•

Southern

Franklin

—

Securities

Co.,

England Telephone Co.

to be offered fcr subscription by stockholders

28,

1955

in the ratio

of

one

new

of

share

record

for

each

nine shares then held; rights to expire on Oct. 28.

—$33

share.

per

Proceeds—To

repay

Price

advances

from

American Telephone & Telegraph Co. (owner of
24.01%
of the outstanding stock).
Underwriter—None. Bids—
In connection with the above
offering, American Tele¬

phone & Telegraph Co. is inviting bids to be received
to

11

of

the

(EDT)

a.m.

stock

1,173,696
of

on

Oct.

rights

Southern

for

6

to

New

the

up

purchase from

it

purchase

130,410 shares of
that it will receive.

England

Probable bidders: Blyth & Co. Inc.;
Put^m & Co.; The First Boston

White, Weld & Co.;
Corp.; Salomon Bros.

& Hutzler.
•

Southwestern Financial Corp. (10/10-14)
Sept. 6 filed 770,000 shares of common stock (par 10
cents), to be offered for subscription by stockholders at
rate

of

two

shares

new

for

each

share

held

(with an
supplied by
of machinery and
equipment; and for the working capital and general
corporate purposes. Office—Dallas, Texas. Underwriter
—Rauscher, Pierce & Co., Dallas, Texas; and Russ & Co.,
San Antonio, Texas.

oversubscription privilege).
amendment.

Price—To

be

Proceeds—For purchase

it Southwestern Oil & Uranium Corp., Grand
Junction, Colo.
Sept. 21 (letter of notification) 3,000,000 shares of com¬
mon
stock (par five cents).
Price—10 cents per share.
*

Proceeds

For

incident to mining activities.
Office—Grand Junction, Colo. Underwriter—None.
—

expenses

Texas Adams Oil Co., Inc.,

1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.
•

Splendora Fiim Corp., New York (10/10)
July 27 filed 1,200,000 shares of common stock (par 10
cents). Price—50 cents per share. Proceeds—For equip¬
and

ment

accessories; for financing film productions;
working capital. Underwriters—J. H. Lederer

and

for

Co.,

Inc., and

McGrath Securities

Corp.,

both

of

New

York.

Inc., New York, N. Y.

general

corporate

purposes.

Sunburst

Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,750,000 shares of non¬

Sept. 6

assessable
cents

common

share.

per

stock

(par

Proceeds

—

two

For

cents).

expenses

Price—10

incident

to

mining activities.

City, Utah.
of
/

Utah,

Office—116 Atlas Building, Salt Lake
Underwriter—Mid America Securities, Inc.

same

Susan

Aug.

11

City.

B. Uranium Corp., Carson
City, Nev.
(letter of notification) 300,000 shares of

assessable

stock.

common

cents). Price—50 cents per share.
incident to oil activities. Office
—Republic National Bank Bldg., Dallas, Texas. Under¬
(par

10

Proceeds—For expenses

writer—Watt

Securities

Bldg.,

Carson

Las

non¬

City, Nev.

Office—Virginia Truck

Underwriter—Coombs &

Vegas, Nev.

r

Co.

.

Uranium Drilling & Exploration Co.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For expenses incident to mining activities. Office—

Moab,

Utah.

Underwriter—Honnold

&

Co.,

Inc.,

Salt

City, Utah.

Sweetwater

Uranium

Co.

V

Sept. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—(P5
Judge Bldg.,
Salt Lake City, Utah.
Underwriter—Skyline Securities,
Inc., Denver, Colo.

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of
assessable
share.

stock

Proceeds

(par five

cents).

Price—20

non¬

cents

For

per

mining expenses.
Office
726
Paulsen Bldg., Spokane, Wash.
Underwriter
Percy
Dale Lanphere, Empire State
Bldg., Spokane, Wash.
—

—

—

*

Tasha Oil & Uranium
Co., Denver, Colo.
(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl

May 11

St., Denver, Colo.

Underwriter

Jaquith, Inc.,

city.

42

Broadway,

Inc., Houston.
Texas Western Oil & Uranium

Co., Denver, Colo.
5,960,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office — 407 Denver
(letter of notification)

stock

National Bldg., Denver, Colo.
ter & Co., same address.

Thunderbird

Underwriter—Floyd Kos-

For

mining

Office—915 Simms Bldg., Albu¬
Underwriter—Hicks, Newton & Co., Inc.,

expenses.

M.
Denver, Colo.

(10/17)
stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
Office
Dallas, Tex. Underwriter — Garrett Brothers,
Inc., Dallas, Tex.
filed

1

1.200,000

shares

of

common

—

Travelfares, Inc., Seattle, Wash.
14

(letter of notification)

shares of non¬
($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.
assessable

common

stock.

100,000

Price—At par

Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At par (50 cents per share).
Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
* Trilon Oil & Mining Co., Inc. /
Sept. 23 (letter of notification) 1,200,000 shares of com¬
stock (par five cents).
Price—25 cents per share.
Proceeds—For

oil

and

same

30

filed

Price—At

9,000 shares

market.

mining

activities.

Office—1406
Underwriter—None.

Mile High Center, Denver. Colo.

Tri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of

common

stock

(par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident, to oil and gas activities. Office—

15

Washington

L. Edenfield

&

St., Tucson, Ariz.
Co., Miami, Fla.

Underwriter—Frank

Evans & Co., Kansas City, Mo.

Tungsten Mountain Mining Co., Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For

—

Carroll, Kirchner &

Churchill County,




—

P.

O.

Box

456,

Fallon,

May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
Investment

Ucon

of

common

Co.', Tulsa, Okla.

Uranium Corp., Salt Lake City, Utah
(letter of notification) 5,000,000 shares of com¬
(par one cent). Price—Five cents per share.

stock

Proceeds—For

mining costs. Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.

U-Kan Uranium & Oil Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses.
Office — Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
stock

Union Gulf Oil & Mining Corp.
Sept. 9 (letter of notification) 600,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬

Co. Inc.,

investment.

to

than

expire on Nov, 1.
Price
Not
value. Proceeds—For general
—

par

Underwriter—Harriman

purposes.

Ripley

&

New York.

United American Investment Co., Atlanta, Ga.
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity
Co.;
balance to be used to engage in mortgage loan business
and

related

fields.

Underwriter—None.
Thorium

Corp.
(letter of notification) 250,000 shares of capital
($1 per share). Proceeds—For gen¬
eral corporate purposes.
Underwriter—Doxey-Merkley &

July 21

stock. Price—At par

Co., Salt Lake City, Utah.
Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share. Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering —
Postuoned.
Uranium

Properties,

Ltd.,

Virginia

City,

Nev.

June 13 filed $600,000 of Grubstake Loans to be offered
in amounts of $25 or multiple thereof.
Proceeds—75%
be

invested in U. S. Savings bondk and the balance
equipment and exploration and development ex¬
penses.
Underwriter—None.
Offering—Postponed.
for

•

Uranium Technicians

Corp. (10/10)
notification) -30,000,000 shares of
stock (no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South I
State St., Salt Lake City, Utah.
Underwriter—AckerJune

30

(letter

of

—

son-Hackett Investment Co.,

same

city.

Utah-Arizona

Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
stock (par 16% cents). Price—50 cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah.
Underwriter—

Trans-Western

Brokerage

Co., New Orleans, La.

Utah

Grank, Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
stock.
Price—At par ($1 per share).
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
Uranium Co., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital

Utah Southern

June 6
stock.
For

Price—At

mining

Vegas,
city.

Nev.

par

expenses.

(10 cents per share). Proceeds—
Office—210 N. Third St., Las

Underwriter—Lester

L.

LaFortune,

same

Utore Uranium & Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore.
Underwriter—Hansen

Uranium Brokerage,

Salt Lake City, Utah.

Vactron Corp.

(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—To
manufacture, process, rebulid and market television pic¬
May

13

stock.

tures

tubes, etc. Underwriter
Worth, Texas.

Fort

—

Zone Investments Co.,

Vanura

Uranium, Inc., Salt Lake City, Utah
3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds
For mining expenses.
Underwriter — I. J.
Schenin & Co., New York. Name Change—The company
was formerly known as San Miguel Uranium, Inc.
June 16
mon

(letter of notification)

stock

—

Vas

Uranium

& Drilling Co., Monticello, Utah
(letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
June 20

Inc., Denver, Colo.

Wabash Uranium

Corp., Moab, Utah
of notification) 10,000,000 shares of capi¬
(three cents per share). Pro¬
ceeds—For mining expenses.
Underwriter—Moab Bro¬
June 10 (letter

tal stock.

Price—At par

kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.
it Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent). Price — Five
cents per share.
Proceeds — For expenses incident to

Office — 718 Title Guarantee Bldg.,
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

mining activities.

Washington REAP, Inc., Dover, Del.
30 (letter of notification) 400 shares of common
stock. Price — $500 per share. Proceeds — To purchase
outstanding stock of Elmark Corp., which owns garden
apartment development. Office—129 S. State St., Dover,
Del. Underwriter—Real Estate Associates Plan, Inc., 14
Aug.

Journal Square,

White

ceeds—For

June 9

Jersey City, N. J.

Horse Uranium,

Inc., Salt Lake City, Utah

(letter of notification) 2,900,000

shares of capital

stock

mining expenses. Office—510 Colorado Bldg.,
Colo. Underwriter—Honnold & Co., same city.

Union of Texas Oil Co.,
stock

rights

less

corporate

rities

Two Jay Uranium Co., Salt Lake City, Utah

mon

held;

be

Denver,

Proceeds—For

Englewood, N. J.

Address

Nev. Underwriter—H. P. Pratt & Co.,

Seattle, Wash.

June 2

to

mon

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,

States

of record Oct. 18, 1955 on the basis
preference share for each 20 shares of common

one

common

Trans-National Uranium & Oil Corp.

July

of

to

Uranium Corp.

June 9 (letter of notification) 3,000,000 shares of common
stock. Price—At par (10 cents per share).
Proceeds—
querque, N.

Co.,

stockholders

mon

New

Co., Houston, Texas
July 8 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,

Temple+on & Liddell Fund, Inc.
Sept.

Inc.,

Texas Toy

June 15

&

United Aircraft Corp. (10/18)
Sept. 27 filed 243,469 shares of convertible preference
stock (par $100) to be offered for subscription by com¬

United States

mining operations.
Swank

Aug. 17

Lake

Co.,

York, N. Y.

mon

Underwriter—Mickle

purposes.

.

Price—At par ($1 per share).

Proceeds—For mining expenses.
of

'

Texas Oil Producing Co., Inc., Dallas, Texas
Sept. 22 (letter of notification) 600,000 shares of com¬
,

stock

corporate

59

Houston, Texas.

stock

(par 10 cents).

mon

Sulphur, Inc., Houston, Texas
Aug. 24 filed 400,000 shares of common stock (par one
cent). Price — $1 per share. Proceeds — To purchase
lease; to drill three exploratory wells; for exploration
in the Isthmus of Tehuantepec, Vera Cruz,
Mexico; and
for

New York, N. Y.

(letter of notification) 66,600 shares of common
Price—75 cents per share.
Pro¬
ceeds—To selling stockholders.
Office—39 Broadway,
New York, N. Y.
Underwriter—Philip Gordon & Co.,
Aug. 11

Sept.

Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent
per share). Proceeds
—For expenses incident to mining activities.
Office—

other

(letter of notification) 9,200 shares of common
jtock (par $5) to be offered for subscription by stock¬
holders.
Price—$30 per share.
Proceeds—To increase
working capital for agency expansion. Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.

mon

New

(10/6)
Sept. 21 filed 543,209 khares of capital stock (par $25)
Sept.

Tennessee Life & Service Insurance Co.

June 20

stock

Mining & Milling Co., Atlanta, Ga.
(letter of notification) 300,000 shares of

(1447)

(par $1).

July

Office—

mon

To

12

(letter

stock

reduce

of

Houston, Texas

notification)

shares of com¬
share. Proceeds—
bank loans, and for development costs and

(no par).

Price—$1.25

61,393
per

(par 2% cents). Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth
West

St.,

Salt Lake City, Utah.
Inc., Denver, Colo.

Underwriter—J. W.

Hicks & Co.,

Continued

on

page

60

€0

The Commercial and Financial Chronicle

(1448)

Continued
*

from

:

r

" "

.

Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about

59

page
'

•••'•;

" '

'

\

Uranium Mining Co.

Wicker-Baldwin

common stock will be registered with
Business—Company, recently formed, is a
copper mining undertaking on Merrill Island, Quebec,
Canada. Underwriter—Allen & Co., New York. Offer¬
ing—Not expected for three or four weeks.

^Wisconsin

Natural

Gas

Co.

due 1980.
additions
and improvements; and to reimburse treasury for capital
expenditures already made. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc ; The First Boston Corp. and
Robert W. Baird & Co.
Bids—Expected to be received
-on

•

Southern

bidders:

the

on

shares held.

basis

of

June

share

new

each

for

shares
and

Denver Nat'l Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.

Woods

Under¬

"C

Oil & Gas

Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision

of
corporate structure,
etc. Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To

"be withdrawn.

Worcester County Electric Co. (10/18)
Sept. 13 filed $8,500,000 of first mortgage bonds, series D,
due 1985. Troceeds—For payment of bank loans and
construction.

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Merrill Lynch, Pierce, Fenner &
Beane, Sal¬

new

competitive
Bros.

& Hutzler and Stroud & Co., Inc. (jointly);
Burr, Inc.; Kidder, Peabody & Co., Blyth &
Co., Inc. and White, Weld & Co. (jointly); Blair & Co.
Incorporated and Baxter, Williams & Co. (jointly); The
First Boston Corp.
Bids—Tentatively scheduled to be
xeceived up to 11 a.m. (EDT) on Oct. 18 at
company's
Office, 441 Stuart Street, Boston 16, Mass.
omon

Coffin

&

•Sept. 29 filed 254,000 shares of
of

Seattle,

stock

common

Price—At the market. Proceeds—To

(par $1).

August Buschmann,

Wash., and members of his family.

Under¬

writer—None.
Yellow

Circle Uranium Co.

July 22 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds— For mining expenses.
Office — 223 Petroleum
Building, Salt Lake City, Utah. Underwriter—Morgan
& Co., same city.
•

Yellowknife

other

general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York

City.

York Oil & Uranium Co.

(letter of notification) 10,000,000 shares of capi¬
Price—At par (two cents per share). Proceeds

tal stock.
—For

mining

and

oil

activities.

Address—P.

348, Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.

O.

Lake

City, Utah. Underwriter—Bel-Air Securities Corp.,

same

city.

°

Prospective Offerings
if Atlas Plywood Corp.

125,000

company

plans to issue and

sell additional

debentures and subordinated debentures.
Proceeds—To increase inventory and to retire
subsidiary
indebtedness. Underwriter—May be Van
Alstyne, Noel
& Co., New York.

Baritfcii Steel Corp.
12 it was reported

early registration is ex¬
pected of $8,000,000 of subordinated debentures due 1970.
from private sale of $3,-

or

debentures, to be used for general

corporate purposes.

Underwriter—Lee Higginson Corp.,

New York.




I

to

Underwriter—-Blyth &

for

account

Underwriter

of

certain

selling

!

securities.

It

for

each

15

shares

Underwriters

—

Pro¬

Lehman

1/

offering of
stock to its shareholders and borrowing through longterm bank loans.
Proceeds
To finance acquisition,
through purchase, of the net current assets of Holeproof
Hosiery Co. (latter's stockholders approved proposal
on
Sept. 6).
an

Gas Co.

stated company plans sale of about $10,000,000 convertible first preferred stock to stockholders.

Co., Inc.,

was

Underwriter—To be determined by competitive bidding.
Probable
bidders:
Lehman
Brothers, Merrill Lynch,

Pierce,

Fenner

&

Beane

Reinholdt

and

&

Gardner

(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated.
Bids—Probably

stock¬

this

Hemphill, Noyes & Co., New

—

share

new

Kayser (Julius) & Co.
Aug. 17, it as announced company plans

Aug. 8 it

to be sold for the account of the company and

shares

one

To retire bank loans.

—

Laclede

acquisitions

Delaware Power & Light Co. |
July 26, Stuart Cooper, President, announced that the
company is planning the issuance of bonds and equity

fall.

Lithium Developments, Inc., Cleveland, Ohio
June 9 it was announced that company plans soon
file
*

a

registration statement with the

proposed issue of 600,000 shares of
ceedsA—For

general corporate

SEC

to

covering a

stock. ProUnderwriter-

common

purposes.

that the first step in the perma¬
nent financing of the program will take place sometime

George A. Searight, New York, will head

late this fall.

^Marquette Cement Manufacturing Co.
(11/15)'
Sept. 30, W. A. Wecker, President, announced that the

appears

Proceeds

—

To repay bank loans

construction

program,
which
includes
which will cost approximately $40,000,000.

—To

determined

be

and for

two

plants-

Loeb

Co.

&

and

by

Salomon

Bros.

&

Hutzler

(jointly);
Lehman Brothers; Union Securities Corp.; The First
Boston Corp. and Blyth & Co., Inc. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
(which may be first offered to stockholders)—W. C.
Langley & Co. and Union Securities Corp. (jointly);
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Carl M. Loeb, Rhoades &
Co.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co. (joint¬
ly); Lehman Brothers. (3) On preferred stock—Blyth
& Co., Inc. and The First Boston Corp. (jointly); White,
Weld
&
Co.
and
Shields
&
Co.
(jointly); Lehman
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co.
Du Mont

Aug.

it
to

10

issuance

Broadcasting Corp.
was announced that corporation,
stockholders

of Allen

B.

following

Mont Labora¬

Du

tories, Inc. of 1,000,000 shares of common stock as a
dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
derwritten.
Kuhn, Loeb & Co. and Van Alstyne, Noel
&

Co.

handled Du

Mont Laboratories

class A stock fi¬

Offering—Not expected until
after Oct. 10, when stockholders of Laboratories will
vote on forming Broadcasting firm.
nancing

some

years

ago.

Bank, Dallas, Texas
Sept. 14- it was announced stockholders will vote Oct. 5
on
approving the offering to stockholders of record
Oct. 5, 1955, the right to subscribe for 200,000 additional
shares of capital stock (par $10) on the basis of one new
share for each

shares

10

held.

Price

—

$30 per share.

Proceeds—To increase capital and surplus.
Fischer & Porter Co., Hatboro, Pa.
Aug, 18, Kermit Fischer, President, announced that the
company expects to offer additional common shares to
the public in the near future (about 60,000 shares).

Underwriter

Hallowell,

—

Sulzberger

Co.,

&

Philadel¬

phia, Pa.
Florida

Power

April 14 it
between

was

and

$12,000,000

bonds. Underwriters—To be

of

determined

first

mortgage

by competitive

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly): Glore. Forgan & Co.; and The First
Boston Corp. Offering—Expected late in 1955 or
early
1956.

Sept.

19

it

Nov.

was

the

bulk

Foundation.
the

Co., Detroit, Mich.
reported a public offering of class A
stock is

common

15.

It

of

is

said

expected

that

the

3,089,908 shares

Price—In

offering price

was

March

last, it
to

Oct.

15

to

be

sold

held

now

expected

between

stock

by

the Ford

was

will

reported that

be

around

$60

per

is

planned

to

sell

share.
Hawaii

Sept.

(Territory of)

12

it

issue

of

was

announced

that

it

$7,500,000 20-year general obligation bonds.

Bids—To be received
Nov. 16 at Bankers Trust Co., New York, N. Y.

Houston

Aug. 26,
construct

(Texas)

company
a

$4

par

value

common

expansion program.
writer—A. G. Becker & Co. Inc., Chicago, 111.
portion

of

$16,000,000

its

stock

Proceeds—To finance

a

Under¬

Michigan Consolidated Gas
Aug. 15 it was reported company

Co.
may issue and sell this
$27,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.

fall

Probable

bidders:

White,
Smith,
Barney & Co. and Blyth & Co., Inc. (jointly); Harriman
Ripley & Co. Inc. and Union Securities Corp. (jointly).
Weld

&

Co.

and

Halsey,

Stuart

Lehman

National Bank of

Co. Inc.;
(jointly);

&

Brothers

Washington

*

Sept. 12 the bank offered to its stockholders of record'
of said date the right to subscribe on or before Oct. 7
for 205,000 additional shares of capital stock (par $10)
on the basis of one new share for each two shares held.

Price—$30 per share. Proceeds—To increase capital and
surplus. Underwriter—Johnston, Lemon & Co., Wash¬

ington, D. C.

England Telephone & Telegraph Co. (11/15)
was announced company plans to issue and
sell $30,000,000 of 36-year debentures.
Proceeds—To >
repay temporary borrowings.
Underwriter-—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Morgan
New

Sept. 20 it

Stanley & Co.; Glore, Forgan & Co.
be

received

Haven Clock

New

Bids—Expected to

15.

Nov.

on

& Watch Co.

Aug. 3 it was announced that stockholders approved
a plan of recapitalization and plans to raise not less than
$300,000

of

capital.

new

nolds & Co., New

Underwriter—Probably Rey¬

York.

if New Jersey Bell Telephone Co. (12/14)
was announced company has petitioned the
New Jersey P. U. Commission for authority to issue and
sell $25,000,000 of new debentures due 1955. Proceeds—
For expansion program.
Underwriter — To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Boston Corp.; Shields & Co.; Kuhn, Loeb & Co.; White,
Weld & Co. Bids—Expected to be received on Dec. 14.
Sept. 30 it

York Telephone Co.

New

Keith S. McHugh, President, announced thai
will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will
cost ap¬
proximately $200,000,000. Underwriter—For any bonds,
to
be
determined by competitive
bidding, rrooable
Jan.

17,

the company

bidders: Morgan

Gas & Oil Corp.
applied to the FPC for

961-mile pipe line from

March

29

ments

for

it

Stanley & Co.; Halsev. Stuart & Co. Inc.

States
was

1955

Power Co.

announced
will

that

(Minn.)
new capital require¬

approximate

$31,000,000.

Present

plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,

(11/16)

Proceeds—For school construction.
on

public offering of approxi¬

a

new

about the middle of November.

Northern
Motor

non-voting
and

mately 250,000 shares of

Registration—Planned for Nov. 18.

Corp.

announced company may issue and sell

$10,000,000

group.

v i,.'

Underwriters^. company .plans to make

competitive bidding. Probable
bidders: (1) For bonds—Halsey, Stuart & Co. Inc.;
Kuhn,

an

that

Proceeds—Together with funds
C00,000 of notes

applied

has

For

—

of

27; rights to expire about Nov. ,10.

—

York.

be

announced

Sept.

equipment.

are

Ford

was

(10/12)

company

Proceeds

stock.

common

new

holders.

Box

Securities

Zenith-Utah Uranium Corp.
Sept. 14 (letter of notification) 6,000,000 shares off class
A common stock.
Price—At par (five cents). Proceeds
—For mining expenses. Office—45 East
Broadway, Salt

Sept. 28 it

Inc.

:

granted company

First National

Uranium

Corp. (10/17-21)
Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for

June 3

of

shares

^

if Wyton Oil & Gas Co., Newcastle, Wyo.

that

A
to the

Corp.

1956.

Freightways,
reported

was

were

(10/28)

has applied

company

Brothers, Goldman, Sachs & Co. and The First Boston

Craig Systems, Inc.
Sept. 2b it was reported company plans early registra¬
tion of 175,000 shares of common stock, of which 50,000

Corp., Denver, Colo.
Sept. 7 (letter of notification) 150,000 shares of non¬
assessable common stock. Price—At par ($1 per share).
Proceeds—For expenses incident to mining activities.
Office—800 Denver Club Building, Denver, Colo. Under¬
writer—Seligmann & Co., Milwaukee, Wis.

Office—414

it

Morgan
Loan —

basis

of Oct.

as

ceeds

sell

to

announced

was

the

on

held

New York and San Francisco.

Wolfson Uranium

—

expects

company

loans, totaling $100,000,000

Consolidated

y::'K

Wonder Mountain Uranium, Inc., Denver^ Colo.
Aug. 12 (letter of notification) 2,380,000 shares of common stock: (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.

&

Inc.

bidders:

Sept. 21

one-for-four basis.

a

Bros.

Indianapolis Power & Light Co.
Sept. 8 it

Indiana P. S. Commission for authority to offer 209,685
additional shares of common stock to common stockhold¬

the ICC for authority to issue and sell 100,000 additional

covering 20,819 shares to be of¬

on

announced

was

Oct. 4 to run to Oct. 9,

on

St., Lake Geneva, Wis. Underwriters—The Milwaukee
Co., Milwaukee, Wis.;; and Harley, Haydon & Co., Inc.
and Bell & Farrell, inc., both of Madison, Wis.
Letter
to be withdrawn.
Full registration probably to be filed
weeks

it

14

Bank

five

Proceeds—To repay bank loans and for exten¬
sions and improvements to property. Office—235 Broad

to four

Salomon

Halsey, Stuart & Co. Inc.;
Stanley & Co.; The First Boston Corp.
Bank

public.

in two

&

ers

Probable

Price—$16.50 to stockholders; and $17.50 to

fered to stockholders

Co. Inc.;

Stuart &

are
reported to be going on
Blyth & Co., Inc., San Francisco, Calif., and Scharff
Jones, Inc., New Orleans, La.

with

from $40,000,000 to $50,000,000 bonds some time during
the current year. Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.

Gas

one

Halsey,

Consolidated Edison Co. of New York,

Co., Inc.
Aug. 31 (letter of notification) 16,654 shares of common
stock (par $10), to be offered for subscription by stock¬
holders

Underwriters—Discussions

Hutzler.

Oct. 25.
Wisconsin

SEC.

if Chicago, Rock Island & Pacific Ry.
Sept. 29 the company sought ICC approval of an issue
of
$2,952,000 equipment trust certificates.
Probable

(10/25)

Oct. 4 filed $2,500,000 of first mortgage bonds
Proceeds—To repay bank loans; for property

Thursday, October 6, 1955

382,000. It plans to. issue and sell $81,200,000 of bonds,
about $20,000,000 of 5Vz % interim notes (convertible into
preferred stock), and over $8,700,000 of common stock.
Stock would be sold, together with the notes, in units.

150,000 shares of

the

May 26 (letter of notification) 900,000 shares of common
ttock.
Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same city.

...

a

point

,rti

r

authority to
near

Baton

Rouge, La., to Cutler, Fla., to cost approximately $110,-

Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬

ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co.

(jointly); Glore, Forgan & Co.

Pennsylvania Electric Co.
Feb. 15 it was reported company plans to issue and sell
later this year

ceeds—To

$9,300,000 of first mortgage bonds. Pro¬
bank loans and for new construction.

repay

,

Volume

182

Number

5470

.

The Commercial and Financial Chronicle

.

.

(1449)

Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First

San Diego Gas & Electric Co. (11/29)
Aug. 2 it was reported company plans to sell $18,000,000

Boston

of

Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Electric

Co.

program.
Underwriter—To be
by competitive bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman
Ripley &

sources—at

least

the

to

20, Thomas B. McCabe, President, announced a
major financing program will probably be undertaken
by next spring. No decision has yet been reached as

precise type, amount

holders

date of financing.

or

proposals

approved

increase

to

the

be

of several million dollars."

Stock¬

and

in

the

five

next

Webster

* Seaboard Air Line RR.

Com..

The

First

Boston

Corp.

and

Smith, Barney & Co. Halsey, Stuart & Co. Inc., is re¬
ported to head a group to bid for approximately $25,000,000 of bonds.

Stockholders

to meet

are

—^ To
Underwriters

•

Republic
5

Bank

of

record

of

Oct.

rights to subscribe for

Dallas

4,

+ Siegler Corp.,
Sept. 20 it

187,500

shares held;

12

—$45 per share.

plus.

one

rights to expire

given

were

shares

Oct. 24.

on

of

share for

new

las, Texas.

Department

>

National

27

right

to

shares

subscribe

of

on

Y.

record

Sept.

before

or

Price—$8

building

(par $2)

received

22

Oct.

31

for

the

52,300

to stockholders

on

lateral

to

be

rate

Reporter's

(par $100).

of

this

made

moves

in

funds.

that

on

when

against

to

pay

a

Vz%

of

part

the

as

con¬

higher
accom¬

the

in

It

Thruway

York

to

Authority

of

higher

a

plane

waiting for

which has

Y.

of

of

to

a

the

on

it

over.

Evidently

who make financial

big utility
gard

the

money

re¬

in

serial

for

bonds

the

turned

down

issue,

larger
of

time

bid

the

it

was

bankers that the

have

redrawn

ceived

more

its

for

could

take

go

has

the

pro¬

$35

a

high

million

carry a 31/4% in¬
all four bids were
same cou¬

group

Carrying

weeks

a

high

ahead.

of

affiliates,
take

them,

ahead when

a

at least
long look
or

figuring their capital
Bell Telephone

through to June,

J

of

shares

Westpan stock

Sinclair

may

sell

SEC

stock

Dec.

21,

to

(52.8%).

The time

I

<

applied to the State Pub-

'

;,

i

t

i

~i

t

»

r

in which

their holdings has been extended by

1955.

Underwriter—Union

Securities

Corp., New York, underwrote recent sale of Sinclair's

new

Gibraltar

in the pre¬

now

'

'

£

*

»

" T*;

:

White, Weld &

be included among the bidders,

may

of

Mortgage

other

branch

offices

and

through the organization of other
mortgage companies as the assets

Slock at $1 a Share

of

the

permit

company

further

expansion.

Brothers,
New York
City, is offering publicly 237,883

The

principal function of the
is that of a mortgage

broker

negotiates mortgage loans princi¬
pally on real property for in¬

FHLB Notes

Market

on

Federal Home Loan

The

Banks

offering today (Oct. 6) $325,000,000 in two series of consoli¬
are

notes due on March

dated

W.

the

tions

Board, announced.

consolidated

The
are

Walter
Home

Federal

McAllister,
Bank

15 and

Chairman

1956,

16,

July
Loan

the

Federal

Loan

Home

issued to refund $120,-

series

F

consolidated

notes, maturing Oct. 17, 1955, and
to assist member associations of
Federal

Home

Bank

Loan

of

class

B

company

stock

common

Mortgage Co., at par
share).
The proceeds from the sale of
per

these securities

are

to

used

be

$39,768

to

$144,900
receivable, $33,649 for fu¬

notes,
additional ac¬

ture

contingencies,

mainder

for

the

and

general

repair

Mortgage

Andrews

Lauderdale,
Florida,

in

branch

loans

is

maintained

at

Palm

Beach
County, Fla.
The company also
owns
a
life and casualty insur¬
ance
agency
located in
Holly¬

actual

disbursement
is

of

months,
the

fall

season," said Mr. McAllister. "To
assist in meeting heavy demands
for

mortgage

funds

this

during

period, member associations bor¬
row

Federal

their

from

Bank, and repay such loans
during
the
winter
and
spring
months when construction activity

normally

slower

two

because

interest

series

new

at

coupons

will

3%

of

selling mortgages. Since all mort¬

on

one

March

of

maturing

maturing

with the most
cast the

and

issues

securities

in the

priced at 100%.

are

selling

dealers

offering.

•

is

'

bought at

are

profit,

the

if

any,

a

is

made in the resale of these mort¬
gages.

group

of

participating

advancing and the most declining issues, are fore¬

preceding September by

lay clients.

In the

1953

of the forecasts were bullish.

a

large group of financial writers

1954, with the D-J advanced to

In

343, the percentage of bulls increased to 65%.

a

ogy

new

the

high of 70%.

is pursued again

And this year, with

the bullish contingent rose again

Thus, that "trend" of the crowd's psychol¬
on

the evident assumption that the higher

market, the more likely is it to rise further!
And, incidentally,

in the divergence

from
as

D-J at 264, 60%

contest, with the

stock prices at a new peak of 472,

of the

July 16, 1956.

nationwide

purchased

discount,

Observations...

15, and 3Vs% on the other

series

A

gages

Continued, from page 4

to

of

$125,000,000,

principal func-r
negotiating loans as a

which

another mortgage company
has its

carry

series

$200,000,000,

of

place of business in Pom-

Re¬
cently, the company has organized

Home

Loan

is

a

mortgage

during

highest

usual

most

is

construction

active during the summer

the

broker, the company also services
mortgages owned by others for a
fee and is engaged in buying and

wood, Broward County, Fla.

time

home

new

as

In addition to its

tion

there is a three- to pano Beach, Fla.
The
lag between the
company
anticipates the
time a savings and loan associa¬ expansion
of its business into
tion
agrees
to finance a home other areas, through the opening
mortgage and the actual disburse¬
ment of mortgage funds.
"Since
five-month

well

as

ciations in South Florida.

homes,

new

to

on

though

Fla., was organized
Oct. 30, 1953. A

Beach,

include

personal property. Al¬
majority of these loans
are negotiated
with private lend¬
ers,
the c ompany also acts as
broker in placing loans with some
Federal Savings and Loan Asso¬

101
Fort

on

office

Palm

West

Co.,

Avenue,

estate

loans

building loans;
improvement loans
purchase improved

straight mortgage loan., It also to
a
much lesser extent -negotiates

corporate

purposes.

Gibraltar

loans

company

and

and

and

real

re¬

the

These

construction

short-term

carry

counts

wherein

dividuals.

to

retire

North

which
obliga¬

notes,

joint and several

of

Both

It has

'

£

Corp. has agreed

($1

1957.

It will

the bank loan and put it lice Utilities Commission for per¬
government securities as col- mission to obtain $100 .million of


f h;


announced Sinclair Oil

was

with the SEC to divest itself of its investment of 384,383

of Gibraltar

Co., for example, is planning for
its requirements

Expected in

$75 million in new common stock.

The

New Jersey

needs.

—

shares

Ahead

Look

Bell System

ahead with con¬
charted.

big

to

In

Long

Allegheny County has arranged
$100 million bank loan, repay¬
through sale of long-term
bonds over a four year period, to
to

Underwriter—East¬

19.

.Offering

Westpan Hydrocarbon Co.
March 2 it

Vickers

financing

funds

satisfactory terms by

a

it

$565 mil¬

colder weather," he added.

able

it

no

the

received

for

winning

some

into

101.54

several

sues.

struction

now

since

that

mortgage financing, especially of

re¬

splitting the total into several is¬

enable

Sept.

on

Dillon & Co., New York.

paratory state would include $25
million in 40-year debentures and

the

credit
rating, the bonds appealed widely,
particularly in view of the fact
that little or nothing in the way
of new offerings is in sight for

the

and

plans

between

noting

System in meeting their seasonal
needs.
Because of the nature of

priced the
debentures for re offering at
102.173 for an indicated yield of

opinion

the

among

company

of

The

latter

agency

company

October.

Proceeds—To the

on

pon.

Authority

the

for

noted that

was

appeared

3.35%.

the

begin before FPC

man,

Oct. 11

on

common

the

put

yesterday

received, all fixing the

amount.
At

market

terest rate.

the market

into

Well

debentures

new

20-year loan,

the
$50
short-term notes, has

come

Moving

spective purchasers.

state-guaranteed bonds, and
month borrowed

with

the

names

pass¬

a

PEGS

although it

Thruway Authority which,

to

(EDT)

p.m.

improvements and

in

the

July, turned down a single bid
for an offering of $125 million of

decided

into

000,000

The

on

lion

are

Public Service Electric & Gas Co.

in

million

to 3

up

time,

Banks,

bid

following

to

of

664,

the war's end it has put

to

Dealers reported a good demand

ing phase.
The

Room

capital

that

Never¬

for

those

firmness

current

now

a

policy for the

temporary and

as

progressively firmer.

will mature serially.

New

use

still inclined to

are

additional
and

theless, interest in the situation
high at the moment.

$100 milion short-term credit

tide

the

runs*

been

debt securities market with

the

large offering, decided

bid

for

True, the total of bonds

months to enter

many

the

borrowing qost of 2.789%.

become

and

of N.

Co.

that
down

turned

be offered figures out to only 40%
of
the
originally planned issue

But the huge Consolidated Edi¬
son

net

a

has

rates.

money

it

Since that time the money market

Thru-

Authority, and the Allegheny
County (Pa.), Sanitary Authority,
seemingly became reconciled to
idea

Co., Ltd.

now plans to issua
publicly about $20,000,000 of securities, probably
in units of notes and stock. Bonds are expected to b*
placed privately. Hearings on new pipe line scheduled

This represents approximately 31.99% of the

The

larger offering in July figured out

way

the

recalled

was

which

the

Corp.;

and sell

(10/11)
Alien Property,
101 Indiana Ave.,

Office

facilities.

bids for its newest offering
Tuesday.

on

large tax-exempt

the New

Justice,

of

the

at

ing with more than usual interest

by interests in need

Two

borrowers,

reported

Co., New York,

writing fraternity will be watch¬

week

Transmission

was

holdings of Colorado Interstate Gas Co.

Thruway Bonds

thinking of
was
clearly

borrowers

Securities

Attorney General of the United States. Business—Manu¬

opens

cleavage

April 25 it

(par $1) and bank bor¬

stock issued and outstanding.

The rank and file in the under¬

Report
The

III.

purchase from it of 2,610 shares of

modation.

I

received

be

W., Washington, D. C.,

common

drawn

needed

are

tractors, accepting

Our

potential

Webster

&

factures and sells carded cotton yarn.

funds

discernible

Stone

a

Underwriter—None.

poses.

will

for the

share. Proceeds—To further
for general corporate pur¬

per

and

program

N.

Rye, N.

of

stock

common

l-for-7 basis.
the

Bank,

stockholders

bidders:

Merrill, Lynch, Pierce, Fenner & Beane.

Spray Cotton Mills, Spray, N. C.
Bids

Rye

for

geles, Calif.

sur¬

Underwriters—Walker, Austin & Waggoner, The
Son, all of Dal¬

First Southwest Co. and Dallas Rupe &

Sept.

Probable

that the company plans the
stock

common

Planned

—

sell 125,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.

Underwriter—William R. Staats & Co., Los An¬

1956).

Price

Proceeds—To increase capital and

Chicago,

announced

was

Bids—Expected to

and

rowings to finance the proposed purchase of all of the
outstanding stock of Holly Manufacturing Co. of Pasa¬
dena, Calif., for $3,000,000 cash. The transaction must be
closed by Dec. 15, 1955 (subject to extension to Jan. 15,

(Texas)

1955

additional

an

capital stock (par $12) at the rate of
each

St., New York 5, N. Y., for the purchase from

sale of additional

National

(EDT) on Oct. 20, at
Gallagher & Walton,

Farr

(jointly).

Registration

11.

Westcoast

resources of company.
Lehman Brothers and Lazard Freres &

stockholders

Owen

sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kid¬
der, Peabody & Co.

Co., both of New York.
Oct.

Willkie

tificates, series P, to be dated Nov. 1, 1955 and to mature
in 15 equal annual instalments. Probable bidders: Hal¬

increase financial
—

received up to

of

9.

Underwriters—May be R. S. Dickson &
Co., Charlotte, N. C.rand A. C. Allyn & Co., Inc., Chi¬
cago, 111.
;
.
.
Virginia Electric & Power Co. (12/6)
Aug. 2 it was announced that company plans to issue

the railroad company of $6,555,000 equipment trust cer¬

Radio Corp. of America
Sept. 2 the directors discussed the advisability of issuing
$100,000,000 of subordinated convertible debentures. Pro¬
ceeds

will be

office

15 Broad

Oct. 20.

on

noon

the

Oct.

Co.

Nov.

stockholders;

(10/20)

Bids

Underwriters—Probably Stone &

years.

Securities

Sachs &
on

★ United Insurance Co. of America, Chicago, III.
Oct. 3 it was reported that an offering of from
350,000
share to 400,000 shares is expected, partly for
selling

authorized

$50,000,000.

The company has scheduled
large-scale expansion program, involving $79,000,000
order to keep abreast of estimated load
growth over

received

around

stock to 40,000,000 shares from 10,000,000 shares
the authorized indebtedness to
$150,000,000 from

a

Goldman

and

common

extent

(11/9)

was

be determined by competitive
bidding. Probable bidders;
Halsey, Stuart & Co; Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.; White, Weld & Co. and Equitable
Securities Corp. (jointly); Harriman Ripley & Co. Inc.

Scott Paper Co.

to the

Corp.

reported that company plans to issue and
$20,000,000 of first mortgage bonds. Underwriter—To

sell

Sept.

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction

United Gas

Sept. 28 it

Nov. 29.

on

Co. Inc.

outside

•

Corp. and Merrill Lynch, Pierce, Fenner &
Beane
(jointly); Lehman Brothers; The First Boston
Corp.; White, Weld & Co. and Shields & Co. (jointly.
Bids—Expected to be received up to 11:30 a.m. (EDT)

construction

from

construction, which is estimated at about $17,500,003.
Underwriter—Dillon, Read & Co. Inc., New York.

Securities

determined

purposes

15 it was reported company plans to sell addi¬
tional first mortgage bonds later to finance cost of new

new

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union

Feb. 21 jit was reported company proposes issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬

ceeds—For

bank loans and for

repay

Texas Gas Transmission Co.
March

construction.

Inc.

Pennsylvania

Proceeds—To

bonds.

61

the uncertainty of prediction is reflected

displayed by tl^e contestants.

Their expectation

forthcoming year-end price now typically ranges all the way
330

to 600.

And

Chrysler, General

Warrants

are

picked

clining-est stocks!

in the issue selection contest,

Motors and
for both

the leveraged

the

most

some

stocks

Tri-Continental

advancing-est

and

de-

62

The Commercial and Financial Chronicle

(1450)

holders generally

Vance Sales

Investing in Common

Mutual Funds

Stocks for Income

THE
mutual fund, the primary ob¬

diversified

a

high

,

be¬
cur¬

of their relatively

cause

group

selected

stocks

common

yield and reasonable ex¬
pectance of its continuance with
regard to the risk involved. Pros¬
pectus and other information
may be obtained from your in¬
rent

vestment

dealer

AXE-HOUGHTON

business

jective of which is to provide an
of

slightly

since

reached

an

Steel

to

laneous

weekly

declined

has

27, when it
high record.

Aug.

all-time

ingot

tinued

production has con¬
and miscel¬

advance,

lumber

and

is down

Corporation

Automobile

120 Broadway, Now York 5, New

from the August

peak caused partly by the exten¬
sive use of air-conditioning.

Established 1930

York

is

production

now

recovering from the changeover
curtailment, and fourth quarter

production is expected to be high.

registrations,
unadjusted for seasonal variation,
may
have reached a new high
record. Preliminary figures indi¬
cate, at any rate, Axe reports,
that retail sales were high enough
August

new

to

car

bring

the

about

substantial

a

re¬

that

so

problem of clearing out 1955
out to

models will probably turn

have been less difficult than pre¬

dicted by some

writers.

Another favorable development,
Axe's study notes,

is the continued
activity in

business

in

advance

countries.
Their
have
been many times in the past when
this country was little affected by
conditions elsewhere, but that is
obviously not true today.
The
British for example, are buying

other
Our

THE COMMON

trade

coal

exports

increas¬

are

changing if not expand¬

is

ing.

Mr.

John Ahbe Named

STOCK FUND

D. G. Sales Officer
John L. Ahbe, previously Re¬
gional Manager for the southeast¬
ern
states, has been appointed

Incorporated 1933

income

Vice-President

investing

and

and

through

common

selected

stocks

Century Shares Trust.

Monday

Mr. Ahbe has had extensive ex¬

PROSPECTUS
from your

Distributors

ON

REQUEST

investment dealer

63 Wall Street, New York 5, N. Y.

wholesale

previously held the post
Manager of the Florida offices
Harris, Upham & Co., and ear¬

of

lier

his

headed

firm

in

investment

own

A

Director

as

He holds the

rank of Lieutenant Colonel in the

t

U. S. Army Reserve, Military In¬
telligence. He attended Lafayette

College, Easton, Pa.
Ernest

eystone

Williams

pointed

has

beon

ap¬

and

Wholesale Representative for

Custodian lund

corporated

porated

BOND, PREFERRED AND

who

Investors

Income

formerly

Horner

&

Incor¬

and

Williams,

Fund.

headed

Mason's

In¬

up

mutual

Scott,
fund

COMMON STOCK FUNDS

department and recently has been
associated with Hugh Long & Co.,
The Keystone

Company

will

50 Congress Street, Boston 9, Mass.

Please send
your
ten

prospectuses describing
Organization and the shares of your
D 136

North

Virginia,

Carolina,

Georgia and
He

Name

Maryland, District

Columbia,

me

Funds.

cover

i

&

graduated from Washington

Lee in

Address

1938, served

tenant in the Navy

City

,

State.

and

has been

investment

the

Carolina

a

Lieu¬
war

associated with the

company

past six

as

during the

business for

inaugu¬

was

the

publica¬

Inc. of

monthly informa¬

a

sales bulletin devoted

and

four

to

mutual

Long-sponsored
Fundamental

the

re¬
on

26

a

large block of

redeemed,"

was

he

ob¬

served, "specialists in a number
of prominent stocks had been un¬
able even to arrange an opening
bid

the

on

Stock

York

New

Ex¬

Yet this shareholder was
to
liquidate his shares at

change.
able

in

once,

transaction,

single

a

at

Investors,
Diversified Investment Fund,

their

demonstration of the advantage to

—

versified

Bond

Growth

bulletins

The

Fund.

Stock
are

Di¬

and

Fund,

designed

of all dividend dec¬

news

larations by these funds,

incide with usual dividend

Information

dates.

form of

a

offering

that this

even

large shareholder of the mutual
redemption privilege, how¬

is the fact that fund share¬

National

in

and

National Securities

have

other

tools,

cus¬

the

from

Sales Workshop of

Hugh W. Long
due to be reg¬

Company,

are

ular features of the bulletin.

first
of
for

issue

an

announces

advertising

dealer

The

availability

designed

mat

Research

&

use,

which

for

effectiveness

has

been
in

and

sponsors

National

announced

a

man¬

Securities

new

funds,

invest¬

ment

plan known as the "Na¬
tional Monthly Withdrawal Pro¬

effective

gram,"

Wednesday

"This

The

record

brought
months

of 1955 to $50,153,779, a
figure, and compared with
$45,904,293
in
the
first
nine
months of 1954, a gain of nearly,
$4% million.
record

Wilkins

Mr.

National

Securities

face

of

the

during the latter part of
the month again emphasizes in¬
vestors' confidence in the stability
of mutual funds like Wellington.
Discussing
of Monday,

more

curities
money

in

one

of the National Se¬

income return

a

the

fe)

Diversified Investment Fund, Inc.

resented less than

1 /10th of 1%

the fund's total net assets.

Manhattan Bond

Inc.

Fund, Inc.
\

following day, Tuesday, Sept. 27,
Wellington Fund's sales were the
fourth highest of any single day
in Wellington's history. "New in¬
vestments in Wellington contin¬
ued strong

through the remaining

Mr. Wilkins

amount

be

may

Program

of

periodic

determined
owner

remittance

maximum benefit over

National

The

have

now

that the
derive the
the years."

so

may

Securities

combined

Series

total

net

assets in excess of $250,000,000.

PUTNAM

from

FUND

such

&odt<m

of net investment

amount

selected

Program

offset

the

income

of the

will

owner,

invasion

or

of

distributions

gains

additional

cash

50 State Street, Boston

be

paid
whoever

at

net

shares

principal,
and

any

automatically

are

asset

of

the

value

in
'

gram
■

■

In

owner."
investment of

any

INC
FUND, INC.

MUTUAL,

National

Securities Series held by the Pro¬
.

\

managed investment

STOCK

cfiECTIVE

FUND,

INC.

accumu¬

lated
a

variety of

feSs

in activities

Diversified Growth Stock Fund, Inc.

resulting

Prospectusesavailable LONG AND COMPANY
on
HUGH W.
these mutual funds through
incorporated
local

Atomic Development Securities Co., Inc.
1033 thirtieth street, n. w.
washington 7, d. c.




'

-m

•

savings, it was said, a care¬
fully planned Program should be
evolved

only after a "searching
analysis has been made of the fi¬
nancial worth of the investor, the

from Atomic Science.

GET THE FACTS AND FREE PROSPECTUS

investment

firms,

or:

Elizabeth

3,

New

of

On the

Putnam Fund Distributors. Inc.

reinvested

companies participating

•

decline

designated, either monthly or
quarterly at dates selected by the
investor.
In
order
to
partially

all

designed to provide

in

excess

remittance

ATOMIC DEVELOPMENT

©

market

lington Fund shares that day rep¬

Series, who wants more
than is available from the

capital

is

the

Sept. 26, Mr. Wilkins
liquidations of Wel¬

that

stated

is

/J£p\
v

FUND,

securities

turbulent

markets

Research

&

Corporation, "provides the means
by which an investor with $10,000

"The fixed

Fundamental Investors, Inc.

a

MUTUAL FUND.

MUTUAL

the

sales of Wel¬
lington Fund in September in the

MM

income.

in

through

that

reported

substantial gains in

Program," explained
H. J. Simonson, Jr., President of

needed in

iMi

sales
nine

September
volume
for
the

investment, may arbitrarily elect
to use the principal to the extent

ATOMIC SCIENCE

$5,040,705

tember, 1954.

new

current

incest

of

rec¬

a

32y2%
in Sep¬

of

of

this week.

or

pre-tested

sales

over

were

gain

a

Begins Monthly

Series of mutual investment

is included.

relations

$6,675,871,

Withdrawal Plan for Investors

the

funds also

tomer

Sales for the month
ord

ever,

decla¬

prices

and

Fund
for
any September in the 26-year his¬
tory of the fund, A. J. Wilkins,
Vice-President, announced.

stated.

changes in net asset values of the

ideas

Gross sales of Wellington

in September were the largest

days of the month,"

Corporation,
agers of the

Selling

time.

value at the

impressive

Wellington Sales
At
Monthly Top

fund

table summarizing dis¬

tributions,

events
fully confirm
experience and demon¬

with the

publication date scheduled to co¬

ration

net asset

"More

a

to

producing investor inquiries.

years.

;of

ing firm.

and

South

Florida.

$1,237,000.

two-thirds

represented liquidation
single
investor,
it
was
pointed out by Henry T. Vance,
senior partner of the underwrit¬
Sept.

by Hugh W. Long and Com¬

funds

of

Tennessee,

net

Massachusetts Investors

of

exceeded

"At the time this

rated this week with the

tion

provide

Vice-President

as

loss,

Ex¬

third of
sales of new
a

Manhattan

Beach

Palm

the

of

County Red Cross.

Stock

York

New

Monday's
shares
Trust

by

investment

for

dealers and salesmen

tion

Mr. Ahbe, who will make his
headquarters in New York, served

service

new

pany,

Beach.

Palm

On

stated.

the

when

shares

retail

and

$1,of
&
Tuesday,

change recovered about

Sales Bulletin

levels. He
of

Group, Incorporated

the

both

approximately

were

030,000, or about 1/10 of 1%
net
assets,
Vance,
Sanders

About

Hugh W. Long
Starts Monthly

Inc.,

perience in the mutual fund field,
at

A

Investors

Massachusetts

demptions of this trust's shares

Group Securities, Inc.

quality.

Carolina

South

and

He will make his head¬

Railroad.

funds of

of the mutual

sponsors

for their invest¬

ment

Durham

tab¬

Trust, the largest mutual fund in
the country, net redemptions on

quarters in Lynchburg, Va.

of

Director

and

Distributors Group,

Sales of

growth

of

director

a

ings Bank of Lynchburg and also
the

Group Securities, Inc.

is

Williams

the First National Trust and Sav¬

of

A mutual fund

buying of shares Tuesday.
"Recent

The funds included in this

Company

for

them

ulation, with aggregate net assets
of more than $1,250,000,000,
are
Massachusetts
Investors
Trust,
Boston Fund,
Massachusetts In¬
vestors Growth Stock Fund, Can¬
ada General Fund (1954) Limited
For

The pattern of international

ing.

contrary, many of
contributed
to
the
heavy

$1,883,191, the firm reported.

around.

way

Monday

the

the

During
the
period
beginning strate that mutual fund share¬
Monday, Sept. 26 and extending holders are not unduly concerned
through 2 p.m. on Wednesday the about
intermediate
swings
in
28, sales of new shares of the stock
prices, but are primarily in¬
group of mutual investment com¬ terested in the
long-term results
panies for which Vance, Sanders of an ownership interest in lead¬
&
Company is principal under¬ ing
American
industries,"
Mr.
writer
amounted
to
$2,697,716 Vance stated.
compared
with
redemptions
of

foreign

American steel—it used to be the

did not rush to

during

On

previous

in dealers' stocks,

duction

loadings are

higher, but automobile production
has
declined,
owing to, model
duction

Research

index

changes, and electric power pro¬

or:

Securities &

National

break.

By ROBERT R. RICH

National Stock Series

investment in

liquidate

Market's Break

through

a

Top
During

Cash-Ins

Thursday, October 6, 1955

...

Jersey

investor's age, intended objectives
and the amount available for in¬

Prospectuses

upon

request from the national

distributor and investment

mono gen

vestment."
"It

is

analysis
ment

only following such an
by a reputable invest¬

.firm," Mr. Simonson said,
"that the appropriate National Se¬
curities
Series
and
the
logical

DIVERSIFIED SERVICES, INC.
869 Investors Bldg., 8th and

Marquette,

Minneapolis 2, Minnesota

Volume

182

Number 5470

.

.

The Commercial and Financial
Chronicle

.

(1451)

Canada Fuud

fering date

Reports Assets

"An original investment in
1,000
shares of Canada General

54.8% to

dominantly by United

States

vestors,

net

reports

new

total

high

of

the close cf its fiscal
year on

31,1955.
Net

in¬

share

at

Aug.

ies

amounted

to

ent

fund

started

26,000

owned by

shareholders,

In

the

annual

at

"Your

fund

former

Last

General

Fund,

Changed

supervised by the
management group and was

under

net

asset

value

issued

Canada

for

General

Limited.

which

2,258,985

Fund

Continuous

public

fering of the shares began
18, 1955."

of¬

priate

review

funds

both

to

since

the

record

1955,

The

ment

for

program

Self-Sustaining New Gar Market

has
of

for

its

the

for

tional

value

American

to

ration

No¬

net

value

Metal

the

in

Forecast

most

free

level

has

both

the

new

demand

demand

by

changes,

October

issue
of
the
"Monthly
Letter," issued by the First
National City Bank of New
York,
foresees a development of a selfsustaining new car market.
According to the article:
Bank

"The market for

new

is, of

cars

course, the most important part of
the automobile market
from the
«;tanHnoint

standpoint nf industrial nrnHup
of. industrial production and economic
activity generally.

In

the

period
income
and

high

of

which has prevailed

almost with¬

interruption since

II,

there

up

what

to

appears

might

be

sustained

employment
World

be

War

building

called

self-

a

sustaining new car market. Once
a
family reaches the economic
level

at

quent
A

which

car, it
cars

recent

and

it can purchase a
tends to buy its subse¬
rather than used.

new

by 'U. S. News
Report' showed that

survey

World

four out of five of the
in by persons

buying

1954

had

also

been

had

ers

owned

five

years

LJ
cars

traded

new

their

thre<Tvears

new

cars

car

and

less.

92%

in

new.

car

of

the

owned

An

equally
large proportion planned to trade
in their 1954

car

"This idea of
of

new

sector

cars

of

pressed

the

at

a

people

owning

group will trade in for

"When

and

whether

decide

owners

to

these

trade

in

still

newer car

(and used

ers

decide

upgrade

to

a

tions

automobile

ns'

.

trade-in

can

obtain

the

growth

allowance

for

his

of

old

an

a

of scrappage exert their in¬
direct effect on the new car mar¬

ket

through

used

cab

trade-in

their

prices

and

new

sales

car

the

add

an

used

otherwise.
the used

The

car

additional

market

at

on

the

reduction

scrappage.

in

At

on

the

supply

the

same

other>
through
time, as

National

was

'The fact that

WORLD-WIDE

we

have sold

large

because most of the
own

cars

six)

the

in

tntnl

(2)

number

dis-

outlined

cnr

municipal

Estimated

are:

$1.25,

and

Wayne

Symington-Gould
debt

of

stock

has

long

while

term

of

1,012,984

Wayne

debt

term

common

of

Pump

has

$626,000

and

431,958

shares of common stock,
leverage of increased earnings
indicated

seem

the

Based

Wellington Fund is making its
largest dividend distribution to

long

and

outstanding

shares;

which

Wellington Dividend

to

Pump; $2.50

$1,480,000

companies should

was

earn¬

$3.

and

taxes,

1955

Symington-Gould, $1

Taking into consideration that

on

value

the

of

stock

for

have

both

effect

an

Symingtonits

and

earnings.

the current price of

on

current

yield

of

8%,

nearly

6%

shareholders with $3,495,893
going

should

to

the true future worth of the stock.

more

The
ment

than

150,000 holders.

dividend
of

20

tributions
income

cents

and

is

the

covers

from

share

a

net

modest

a

appraisal of

pay¬

in

dis¬

DIVIDEND NOTICES

investment

being

be

mailed

to

holders of record Sept.
9, 1955.

"On
would
per

OTIS

this basis, new demand
normally average about 3%

year,

in

or

of 1.4 million

ELEVATOR

the neighborhood
An

cars.

COMPANY

important

part of this demand is the growth
of

2-car

to be

Common Dividend No. 195

families,

now estimated
10% of all families."

over

A

the

no

$.625 per share

value

par

Common

Stock has been declared,

THE

ATCHISON.

SANTA

New

FE

TOPEKA

RAILWAY

York,

N.

AND

payable

October 28, 1955, to stockholders

COMPANY

Y., September

27, 1955.
day
de¬
Twenty-!
being Dividend
No.
173, on the Common Capital Stock of this
Company, payable December 8, 1955, to holders
of
said
Common
Capital Stock registered on
the
books
of
the
Company, at the close of
business October 28,
1955.
D. C. WILSON, Assistant
Treasurer,
120 Broadway, New York 5, N. Y.

of record

The

Board
of
Directors
has
this
a
dividend of One Dollar a!nd
Cents
($1.25) per share,

clared

five

dividend of

on

DIVIDEND NOTICES

the close of business

at

October 7, 1955.

on

Checks will be mailed.
H. R. Fardwell, Treasurer
New

York, September 28, 1955.

increase

of

nwnnr

car owner-

AMERICAN

increase

households and

in

ownership

RIVER BRAND

CAN COMPANY

per

household. Household growth

cur¬

COMMON

rently

amounts
to about
2%
a
Car registrations per house¬
hold have moved up from the re¬

duced

level
in

of

66

mid

per

to

90

Transfer books will remain open.
be mailed.

in

This does not mean, of
course, that 90% of the households
a

It

car.

of

households

cars

COMBUSTION

Some

than

more

dealers.

car

will be further growth in owner-

household, but it will

per

closer

to

annual

rate

Secretary

the

long-run

since

1929

of

be

Board

of

Dividend

'

Directors declared

regular quarterly dividend of
per share plus an extra of
30^
per share and a 10% stock divi¬
dend, all payable November 1,
a

ENGINEERING,

INC.

one

There

Consecutive

30^

and some cars are owned by
businesses or were in used-car in-

ship

The

EDMUND HOFFMAN,

represents
divided by the

households.
own

of

37th

Quarterly

Checks will

merely

car,

ventories

RICE MILLS, INC.

fifty

cents per share was declared on
the Common Stock of this Company, payable
November 15, 1955, to Stockholders of record
at the close of business
October 20, 1955.

100 house¬

1946

-

STOCK

On September 27, 19S5 a quarterly dividend
of

year.

1955

A

quarterly

dividend

dends
of

Stockholders

to

October

Dividend No. 208
seventy-five

cents

7, 1955.

will

be

of

Record

Both cash divi¬

paid

per share
on
all the outstanding stock
the
Company
has
been
declared
payable
October 28,
1955 to stockholders of record at

number of

the

the total

on

10% stock dividend.

(75c)

scares outstanding, in-

of

close

of

business

October
OTTO

Vice

average
0.8 per

14,
W.

President

eluding the 'shares issued

1955.
STRAUSS

/

.

and

Treasurer

100 households than the 3.4 rate of

the

as

B. C.HEMMER,
Secy. & Treasurer

September 15, 1955.

the postwar period.'

NOTICE

Vanadium Corporation

QUARTERLY

DIVIDEND

NOTICE

The Chase Manhattan

the

in

automatically the forces

from

ings

Gould's

BANKING

Company,

to domestic customers sets

come

in

clared

to produce in the next
riod a total that

ers

excellent.

the

for

53c, and

share. The

per

America

of

DIVIDEND

Analysis Depart¬

six-year period, 1949 through
1954, an average of 5,250,000 cars
year

royalties
expenses

earned

outlook for the next 12 months
is

ex¬

Industrial

the

a

growth

and

As

after

the

LONG ISLAND LIGHTING COMPANY
DIVIDEND

November, 1954:

in motion

one

f?and' the, increa;>e .in demand
fr0m pe0ple PurchasinS cars for
the first time and>

level

and

for

steadily growing

population

of the Economic

"

or

which

the

the

and

Symington-Gould

Wayne Pump $1.12

the

driving age,

because of (1)

occurs

number

prices

the

of

income.

additional

car

reflect,

in

of

the number of

market absorbs these

cars

formation,

out of ten

through trade-ins, direct sales,

period,

the

In

Net income from divi¬

interest

$824,787.

mid-1953.
on

allowances.

to

War.

Growth in total

own

car

and

the current

following

population

on

hence

"Approximately nine

the
state

however, it arises from

trends

holds

influence

regular turnover

ment of the Ford Motor
'

the

rate

stimu¬

prices

in

as

Korean

«<rrmA/th
u-

ship

is

Here

be

February,

owner

and

dends,

capacity

1954:

family
impor-

car.

demand

the

tribution

new

One very
these decisions

element in

the

in

the

scrappage.

by Mr. Hitchings before the Joint
Congressional Committee on the
Economic
Report
in

a

changes
ciidnges,

siyie

levels, and shifts

living patterns.
tant

style

dUt°moDiie

at

by other factors, includ¬
unpredictable events as

run,

and

car) depends upon many
factors,
including general economic condiinCome

attractive

household

car own-

to

of

long
in

and
may

scare-buying

start

car

for

Conference Board economic forum
by George P. Hitchings, Manager

in

the

cars.'

new

or

ing such

proportion of
cars
in this age

*two-for-one

within five years.

a

by

year,

is what

course,

buy-

nrevious

L? k!?!
had been

in
or

traded

bought

Two-thirds of these
onlv

cars

of

common

markets, the price
important effect on

an

"New

" 'The problem in
any one year,

its

$36.03
share. After giving effect to
two-for-one stock split, this

per

Shares

to

lated

Automobiles," the

$1,031,655.

1955, before giv¬

split, is estimated

model

article entitled "The New
Car Market for

of

the

31, 1954.

to

year.

For the first six months of
1955,

were
com¬

profit from the sale of se¬
curities for the nine months was

Corpo¬

today that

stock,

1,800,220 shares

Net

The

next

to

the

on

booked

are

after deducting $5,-

as
compared
with
June 30, 1955 and
$29.14

on

Dec.

on

dates.

International

effect

stock

invest¬

both

announced

asset

ing

effected

was

out the period of high income
employment since World War 11 has created a demand
for cars, and once a
family reaches a level to purchase a new
car, it tends to buy its subsequent cars new rather than
used.

new

at

$60,327,-

$742,329,

outstanding
$31.99

Corporation, a majoritysubsidiary, is included at

asset

that

,

preferred

stock

mon

stock

"Monthly Bank Letter"' points

out

outstanding.

were

equal to $30.18 per share of

es¬

distribution.
of American Interna¬

holding

owned

Metal

changed

100%

and

an

Net assets,

corresponding net asset value on
31, 1954 was $51.53 per old
share or $25.76 after
adjustment

October issue of the First National
City Bank of New York's

In

giving
split, is

today

dividends of

$1,878,J37.

993,000

After giving effect to the
twofor-one stock split, this amount
is
equivalent to $29.06 on the
2,643,-

Inc.
one

broadened

a

asset

Dec.

dates

change

name

net

I Like Best

increase for the nine months

was

Sept.
effect to

stock at Sept. 30,

to dramatize

original of¬

the

the two-for-one stock

vember.

of

Company

common stock at

before

After

Secuxity

of

31, 1954.

029.

The

100%

General American
Investors
Company, Inc. reports as of Sept.

30, 1955 net assets

States

United

been

•

as

the

Express

that

announced

63

Continued from page 2

$16.20

Corporation

ex¬

timated at $58.13 per share.

February, May, August and

seems appro¬

the

sec¬

time, he announced

have

Adams

for

the net asset value of
its common
stock at Sept.
30, 1955 is estimated
at
$35.61
per
share
compared
with $32.29 at Dec.

time, its
was

fund's

to Metal

same

Petroleum

America

to include electronics
and

960 shares to be

dividend

Shares

Noting that "since the two funds
have been merged it

30,

net

that

Jan.

on

The

At

(1954)

At that

or

the

distribution.

de¬

known

program

announced

Its

the

became

share

adjustment

stock

Closed-End News

offerings from Steel
Shares to
Metal Shares,
Hilton
H. Slayton,
President, announced.

of

recent

old

per

after

atomics.

mutual fund

there

shares

a

the

Managed
Funds,
changed the name of

the

same
sponsorship as
fund, was merged with the
present fund, adding
$20,961,670 of

your

were

which

Steel Shares

was

$32.40

bring

reasons

investors.

November, the

Canada

Inc., which
same

panded

advantage

of

shares provides for

opera¬

Shares

value of its

ownership

most

Electric Shares.

discussing

outlines

to

on

1,876,000 shares to be out¬
standing. The
corresponding net
asset value on
Dec. 31, 1954 was

complete coverage.

the

now

equivalent to $18.01

the

classes

more

investment

States.

which

tion with net assets of
$30,064,500
and 3,250,200 shares of its
stock

outstanding.

ment

compan¬

industries, in

management

a

Until

holdings

The report also includes
tion relating to the tax

out that:

commenced

section

a

amount is

velopment
in
this
investment
policy came last July when Man¬
aged
Funds'
Electrical
Equip¬

reflecting the

industry classifications

the

United

report, Henry T.

Vance, President, points

of

metals, from alumi¬

zirconium.

industry

about

for its belief that the
growth pros¬
pects for business and
develop¬
ment of natural resources in
Can¬
ada compare
favorably with the

on

the end of the fiscal
year.

18

includes

the

5,637,-

outstanding,

than

more

operation
There were

1954.

242 shares

in

each

$11.64 compared with $10.63 on
May 31 and $9.25 when the
pres¬

Sept. 1,

after

The annual report lists
of stocks of 91 Canadian
and

per

and

1954 merger."

•

assets

j

tribution

assets

$65,616,751

ous

$14,370 on Aug. 31, 1955 after
adjust¬
ment for a 1953
capital gain dis¬

pre¬

to

Over the past two
years, Man¬
aged Funds, Inc. has
broadened
the investment
scope of its vari¬

net asset value of

a

all

cover

num

Fund,
Inc., with a net asset value of
$9,260 on Aug. 1, 1952, increased

Canada General Fund
(1954)Limited, one of the largest Canadian
investment companies owned

a

to

Vance observes that:

At $65 Million

at

Aug. 1, 1952," Mr.

on

the

years

6-year
or

new

pe¬

larger,
buy¬

car

people who
of age and

under.




a

12,000,000 shares of

stock of the Bank,
■

CHARTERED

1799'

15, 1955

THE

to

has de¬

share

the

capital

payable November

holders of record

at

f

f

COMMON STOCK

on

the

close of business October
14, 1955.

The Board of Directors has de¬
clared a
cents

The transfer books will
in

connection

with

the

not

he closed

payment of

this dividend.
f

420

Company

November 1, 1955, to share¬

holders of record
business

on

at

the close of

October 14, 1955.

Dividend Notice
At
tors

of

VINCENT T. MILES

Secretary

regular meeting of

a

held

forty

thirty

stock

of

15,

o'clock

3:30

be

per

the

p.m.,

^
Dated

an

were

a

both

stockholders

Niwember

4,

of

dividend

declared

Corporation,
to

Direc¬

dividend

extra

of

on

the

payable
record

1955. Checks

mailed.

Treasurer

September 28, 1955

and

share

1955

the Board of
1955,

27,

share

per

cents

November

will

September

cents

capital
at

KENNETH C. BELL
Vice President and

Lexington Avenue, New York 17

quarterly dividend of 25
per share payable on the

Common Stock of the
on

Chase
Manhattan
BANK.

Bank

dividend of 55c
per

September

^

SHRIVER,

27,, 1955.

Secretary.

The Commercial and Financial Chronicle
64

Thursday, October 6, 1955

...

(1452)

Of this $282 million of

BUSINESS BUZZ

materials

to be acquired, all but $22.3 million is for one of these three

y

categories of stockpiles.
•

•

•

[This column is intended to re¬
flect the "behind the scene" inter¬

A

Behind-the-Scene Interpretations

WASHINGTON, D. C.—Uncle

of

iorm

part of a county as to its
production history in relation
to the crops insured, before un¬
derwriting
any
risk
in
any

the

As

a

be subjective in
It can

surance.
;

in
risk

premium
higher

,///\- V ;
matter of fact, Norman

Corp.
r

.►

the power to
writing up in¬
charge a higher

CIC has

county.

which is in
similar — insur¬

against crop losses through
Federal
Crop
Insurance

ance

It

losses..
in

with

area

an

a

of crop
charge a lower
where the data

history

can

P.Mason, Federal Housing Com¬

rate

had Crop
Insurance
in mind when he
noted in the original press re¬
lease sounding the call for "a
move
to
devise
governmenthacked
insurance
which
will

CIC

areas

'

refuse insurance

can even

same

ment

release

press

present

"the

;

re¬

.

indicated

arrangement in mind sim¬

insurance,

Crop

risk

hand, is a

j

of

aid of business.

"

J

,;^

through
Crop Insurance Corp., first*

Federal crop insurance
the

such

for

provided

Congress

While

1939.

in

went into effect

a

benefit, it did so with little ap¬

enthusiasm,, for it was
initially' to commit;
much money to the project. Due
to reduced funds, including ad¬
ministrative/appropriations, the!
Crop Insurance Corp., did not
do too extensive a business in
parent

unwilling

earlier

its

In

years.

and

1939

the corporation took on
.wheat only. By 1941 it took on
1940,

Put In Liquidation

/

However, in its earlier years,

CIC, which before 1944 offered
nation-wide coverage, ran into
the
same
apparent
attitude

prospective beneficiaries
that will confront any flood in¬

among

scheme

surance

100% subsidy.
which

is

not

opinion

the

in

has,

that

a

It is the attitude

of

private
insurance
companies,
piade flood insurance unfeasirble. Those who don't need it
don't
do

take

to

want

it

need

it

buy;

and

on,

those who

the

are

ones

they

who

are

the

greatest risks.
•

insurance on
The
experi¬

multiple-crop

the

farm.

same

approach is typified by
with which CIC
takes on new fields of pro- ;

mental

the

chariness

now

spective loss. Just this crop year
1955, for instance, CIC is experi-mentally handling in only a few
counties its first attempt at in¬
the major soy

on

surance

bean

Next year it will experi¬
cautiously and inexpen¬

crop.

ment

with

sively

in

barley

few

a

losses

administra¬

for overhead

funds

costs—just premium income
"indemnities" or outpay¬

tive

versus

ments— showed

cumulative

a

approximately $93.4 mil¬
lion, through 1946.
loss of

paid

out

four

in

However,

in

less

than

losses

it

to-~
(in round numbers) of $5.4
million in 1947; $6.1 million in
by

a

tal

1948;

and
These
basis.

1950;

million in

$1.5

almost

$600,000

figures

are on a crop year

and

1953

of

and

than premium income
including
administra-.

.

iive overhead,
«f its

with

the

CIC

into

whole

Congress

in

one

moods got disgusted

rare

deal

and

voted

liquidation.

crop

year,

to

For

in 1951.

1954,

losses

took

the corpora¬
$4 million

of

beginning

poration

no

four

1939

the crop

matter how
finally

by Congress, so the
revived again with
year 1945, but on a dif¬

basis.

cost

of

This different basis looks and

business

suming

The

this

annual rate of about
$6 million.
Thus in only two
years were operating surpluses
close
to or slightly exceeding

ning at

approach
risks.

The

a

private

toward

orized

Federal
agencies can lose a great deal
more
than $144 million in 15
years of operations.
It is not
Of

many

course,

whether this is the con¬

known

which FHA Commissioner
Mason had in mind in terming

cept

insurance

crop

$100 million of loans auth¬

the

overhead costs.

suc¬

a

This

ance.

borrowed by the HHFA

is

aspect of the

the

that

the

in

farms

number

5% million

United

States

interest in-

that

have

crop

rule

taken

annual

an

business has

amounted

• never

Admin¬

istrator directly from the Secre¬

Under the

tary of the Treasury.

Housing Act of 1954—passed by

Republican
funds for reviving

previous

the

Congress

—

and

except to the

disbursed

be

than

the

$40,648,000

premium
for

in

income
since

years

enhower

a

as

to

more

taken

1947,

then has

Congress

There

swapped for
foreign materials, many of them
government

are

The first story

is the amount

revealed

it

that

has

CCC

has

in

made

contracts for sale of sur¬

and
gen¬

plus commodities "with an ex¬
port value," it says,
in

lion

the Eis¬
jumps

probably

won't

great deal.1

istrative expenses for

as¬

million.

With the

demnities

lion,

this

just

One of the little noted

Democratic

—

>

.

excess

the

of

mil¬

total

de¬

scribing the Snell-Supplee col¬
of albino rats for research
testing — Public Relations

ony

and

Department,
Foster D. Snell,
Inc., 29 West 15th Street, New
York 11, N. Y. On request.
'
'
Its

Management:

in

Role

Staff

—

&... Brothers,

Harper

East 33rd

491

Street, New York 16,

fiscal

of $282 mil-,
This

1955.

com¬

with similar contracts for

million

$110

the

has

CCC

years

in

first

had

five

barter

power.

Drafting

—

York

17, N. Y.—$3.

Trade
Haberler,
translated from the German by
International

of

Survey

Theory

—

Gottfried

Finance

national

Section,

De¬

partment of Economics and So¬

ciology, Princeton
University,
Princeton, N. J. (paper) single
copies on request.

book

1955

—

H.

James

Research,

Thomp¬

of

Editor—Bureau

son,
ness

Hand¬

Statistical

Virginia

West

Busi¬
of

College

Commerce,
West
Virginia
University, Morgantown, W. Va,

story is the amount

materials being

stockpile,

the

changes

acquired for

"long

range"

stockpile" of the Foreign Trade
and

Development Act of

1955.

New Views

on

CALIFORNIA

CLASS

B

(Common)

Copies

STOCK

on request

LERNER & CO.
Investment

10

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

•

loss

TEL:

HANOVER 2-0050

^

T

&

Ho. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

mtm

VoL

Construction, 101 Park Avenue,
New

(paper).

A second

of

Shop

III—American Institute of Steel

stockpile, and the "supplemental

housing leg-

in¬

$90

•

Booklet

RIVERSIDE CEMENT CO.

vps some $54

under

brings

CIC from

lion, and this is still exclusive

new

7.

request*

the war-time minimum strategic

Immediately Available

in the

on

Research

for

W. Michael Blumenthal—Inter¬

basic, many strategic.

thing which is a big whooping

a

(paper)

agricultural

surplus

commodities in the hands of the

pares
or

Administration

it

Dart¬

College, Hanover, N. H*

mouth

Rats

School of

Tuck

Administration,

Business

son

stories in the

two

are

whereby

into flood insurance with some¬

subsidy,

Professor Herbert C.

—

Creative Use«—Robert C. Samp¬

figures on the barter deals of
the
Commodity
Credit
Corp.

erally been smaller. t
So unless

Writing

Morton—Amos

not

appropriated by Congress.

tent

Has

Business

ex¬

this old RFC function could

insurance has been small.

CIC's

be

can

to Work:
What
Learned
About

Words

Putting

N. Y. (cloth) $4.

of farmers out of the
of

purpose

Asso¬

Bankers

ciation, 12 East 36th Street, New
York 16, N. Y. (hard covers).

Structural

insurance scheme that may
a
bearing on flood insur¬

crop

this

|

in Bank¬

Development

Barter Deals Are Growing

Smalll*

There is another

have

for

paid out of the Treasury.

through last year to $144 mil¬




This amendment provided that

V

company.

cumulative total of admin¬

of

re-

on

^

-

govern¬

That it was, plus also cautious.

entitled

an

source

a

the

through 1954

quest)*

totaling

basis
"experimental."

was

Administrative costs are run¬

being

of

overhead costs
"insurance
company"

this

were

of

insurance

However,

1939

smells somewhat like

of
funds for financing local public
works, such as sewer, water, and
gas distribution systems.
business

•

or

was

ferent

FCIC..

skip the appro¬

a,loss of $89.8
million without figuring in the
ment's

ever

of "profits"

years

$13.6 million,

murdered

thing

in

to

was

ing losses of $103.4 million, and

Different Basis

subsidy,

with

one

1944, the Crop

unsuccessful, to be

Cor¬

and

However, it is most verboten

-

ment"

Public Works Money Is

Thus the Crop Insurance

overhead

for any

$144 Million

Loss Nearly

put

I

Revived On

priations process in the matter
of setting up the Housing and
Home Finance Agency in the

"invest¬

of interest on its

ury

amount to

$6 million, respectively.

continuing through the crop
year 1954 had aggregate operat¬

Insurance Corp. was out of busi¬
ness.

islation

CIC

years

collected in premiums,

after year in terms
outpayments

greater

not
ex¬

clusive of the cost to the Treas¬

Scope

of its his¬
tory, the Federal Crop Insur¬
ance
Corp. has
taken losses.
Without counting appropriated

Corp. had taken steady

without

detailed.

Losses Incurred

In Most Years

tion

year

loss years
It is also

of

couple

a

cessful operation.

of "indemnities" or

.

of

Federal

counties.

other

Thereafter, with the dry spells

the time the Crop In¬

So by

surance

Y*Jrl

ing— American

Throughout most

cotton.
'

experimenting. In sev¬

how it works out, the use

see

*

(paper)

D. C.
prices

4,

(quantity

Executive

herein

another kind of crop.

or

eral counties it has undertaken,
to

it-

by

all

-----a-

.**

study

only

are

CIC is

intermediary ]

the

without

«elf,

on /the
other
which the gov- j

undertakes

ernment

in

'

monkey

one

government.

the

by

written

Washington
25c

in¬

with. All in all,
803 counties in
which CIC writes insurance on

is under¬

insuring risk

or

tories CIC has had time to

Invest¬

—

Association

America, 425 13th Street, N. W.*

production his-

whose

Association

Bankers

ment

offer¬

of

Instead

basis.

there

lending

which

in

ministration

Bankers 7

genuinely experi¬

a

nationwide, as initially, the
is only available

and

ilar to his Federal Housing Ad¬

Tisk

on

counties
-

gome

Business

Memorandum

—

prepared by the Small Business
Committee
of
the Investment.

ing insurance on an entire crop,
:

had

he

Corporations

Furthermore, the thing is pro¬

surance

Mason

Mr.

to

open

like Lloyd's.

more

mental

program

years."

cent

is

ceeding

showing a surplus in re¬

even

request.

on

Equity Capital for Small

fair and foul beneficiaries alike;
it

successfully,

which has operated

copies

most gov-

are

as

enterprises,

ernmental

govern¬

insurance

crop

education

lie

stitute, 350 Fifth Avenue, New
York
1, N. Y. (paper) single

if

'

erty as a result of flood dam¬
age."
to

good
his production
is one of crop failure.
words, it's not like pubis,

land

In other
;

ple suffering loss of real prop¬

This

his

72-

—

steel

and

farmer no matter how

a

history

give financial protection to peo¬

ferred

to

Progress

illustrated booklet of iron
industry statistics —
American Iron and
Steel In¬
page

_

■*,

Steel's

Charting

show fewest years of poor crops.

already

missioner,

views.]

own

every

insurance

respects

the "Chronicle's"

county and

CIC surveys every

.

who is fussing with the
idea of going into the flood in¬
surance
business, has already
had
some
experience with a
Sam,

gome

JL \JIAj

jTjLK i/\A/

Netion'e Capital'

from the

pretation from the nation's Capital
and may or may not coincide with

gl

Securities

Post Office

Square

Boston, Mass.
Phone HUbbard 2-1990

Teletype BS-69