Full text of Commercial and Financial Chronicle : September 13, 1956, Vol. 184, No. 5568

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IjlMV cKOI I

ESTABLISHED IS39

«

MICHIGAN

OF

p 14 1956
AOMIWSTIATIM

LIBRARY

Volume

184

Number 5568

New York '7, N. Y.,

Thursday, September 13, 1956

Price

40

Cents

Copy

a

EDITORIAL

Is Our Anti-Trust
.

•

"v

«V.

■

■

..."

;'i- -v:?

-

•

y-*i

By DR. ROBERT E. BERRY
Associate

to endless buncombe about the farm situation in
1

of national elections. For decades,,

Can We Improve Methods
Of Appraising Growth Stocks

In the Public Interest?

;

We shall doubtless have to reconcile ourselves

this year

Policy

even

-

By RALPH A. BING

Professor of Economics

Miami University,

Head, Research Department, Sutro & Co.

Oxford, Ohio

,

Predicting "stock prices will tend to gravitate. around
moderately lower yields ^ and slightly higher price-

Using, the general Motors bus case as a point of depar¬
ture, Prof. Berry finds a lack of understanding regarding
.the advent of Franklin Roosevelt the farmer-and
present status of our anti-triist laws, and a general ina¬
,the vfege earner are more than ever the darlings '/ bility in resolving our basic dilemma in anti-trust
policy.
of the political gods. Candidate Stevenson has
(1) Explains Alcoa doctrine that '/monopolization per se
is illegal whether due or not due to unlawful activities
already made it plain that he plans a major bid
designed to achieve monopoly"; (2) finds unreconciled
for the vote of the farmer as did President Tru-.
our objectives of
wanting efficient producers and want¬
man in 1948. The Administration has
taken.spe¬
ing many small producers in a socially desirable econ¬
cial pains, albeit with apparent reluctance, to do
omy; (3) depicts as key question whether 90% or some
what it could to please the farmer with larger
other figure constitutes "monopoly" power; and
(4)
cash benefits.
>
'
•"«
v'« V advises those who view present General Motors case
with alarm to object to Congress or the Courts, but not to
All this the ordinary man could better endure
Department of Justice.
if only there were a greater measure of candor
When IT. S. Attorney General Herbert Brownell Jr.
generations, it has been the usual thing, and since '

.

in what is

*

,

being said and

more

long-term

being .done. The, authorities at Washington have

of earlier

budget estimates for the current fiscal
and there it is disclosed that, despite all

year,
>

cized

profligate agricultural
•subsidies, more than half of a several billion dol¬
lar increase in outlays this year is accounted for
by more liberal treatment of the agriculturist.
Of course, Administration officials lay the sooth*,
ing xmction to their souls that they are handing
out these funds in a way which will not tend to
I increase production of unwanted goods, but it
could hardly be plausibly claimed that these pay¬
ments are other than plain largesse. Certainly
no one supposes that they will help in any way

that this

There is always brisk demand for so-called growth
stocks, that is stocks whose earnings and dividend pay¬

\

on

page

case

ministration

grounds.

share basis show

per

excess

of

But

from

usher

the

their intrinsic

brought
ear¬

editorials,

reminiscent

of

peared during the A&P case, declared,

are

REGISTRATION

afforded

undertakings in

a

Underwriters,

—

appraisal

those which ap¬
in some instances.

Continued

on

page

dealers

closely

as

Brownell's announcement seemed all the more startling.

Newspaper

Bing

tta>pn

philosophy of the
Fair-Deal period, Mr.

New-Deal,

as

would

Municipal

Securities
telephone:

HAnover 2-3700

CHEMICAL

ROYAL. DUTCH
% PETROLEUM COMPANY

presume

in

and other

BOND

DEPARTMENT

30 BROAD ST.,

N.Y.

estimate

of

the

STATE

i'E:

as
on

well

as

page

24

COPIES OF OUR

Housing Agency

Bonds and Notes

LATEST

BONDS

and

Public

MUNICIPAL

m

"POCKET GUIDE FOR
TODAY'S

INVESTOR"

"

Foreign Securities

ARE

NOW

ON

BOND

AVAILABLE

DEPARTMENT

REQUEST

:'"J"-

THE

THE FIRST NATIONAL CITY BANK

Burnham

and

MEMBERS NEW YORK AND

15 BROAD STREET, NEW

YORK 5, N. Y.

Harris, Upham & C2

OF NEW YORK

Company

AMERICAN STOCK

Members

ENHANCES

•

Dl 4-1400

Bond Dept.

120

Teletype: NY 1-708

TELETYPE NY 1-iOOJ

CAIU: COtURNHAM

life

prospective

State, Municipal

m

corn exchange

BANK

•;./

cor¬

"Securities in Registration" Section, starting on page 36.

our

Trading Markets are maintained

these

valid

a

Continued

investors in

and

v;^

complete picture of issues now registered with the SEC

(New York and Foreign Shares)

Active

be defined
•

expectancy of an individual company, its
earnings and dividends until liquidation,

U. S. Government,

EStalo and

relatively
income,
all

Theoreticallyt the ideal appraisal
of growth stocks, and for that matter
of all
stocks, would be something
resembling the appraisal of bonds
possible—if it could be done.
Such an

in

,.

:•"/'

18

and

the

value

evaluated?

anti-business

an

and

dividend

vidual—interested in growth stocks,
how astutely are growth stocks be¬
ing
appraised?
How
closely
can

years, cases which many busi¬
nessmen had
regarded as reflecting
Berry

cash

With
so
many
sophisticated in¬
vestors—both institutional and indi¬

lier

Robert E.

long-term

annual growth

combine to make such stocks a nat¬
ural choice for the
wealthy investor.

the

by the Department of Justice in

gains,

small

wel¬

a

average

our

capital

charge

in

cases

an

of the average 3%

economy. The above-average
appreciation of growth stocks in the
equity market over the years, the
tax
limitations
put
on
long-term

against big business.

would

relief

come

NOW IN

porate securities
and potential

a

had, perhaps na¬
ively,'assumed that the present Ad¬

18

SECURITIES

on

And for those who

•

Continued

ments

growth well in

action represented another

"punitive"

:

DEALERS

several

on

most serious critcism was the

for

administrations

vious

Mr. Bing critiques various growth stock ap¬
praisal methods, and offers an improved approach to
problem. Warns on postulating unrealistic growth rates.

^ earnings.

,

the resolutions and all the condemnation cf pre¬

less

in

fluctuations, Sutro's head analyst envi¬
prudent investor probably staying within reason
in buying a high caliber growth stock now at a
price
roughly equal to 12 to 14 times prospective 1960-61

show, Press Conference} in July and announced that the
^
^* Department of Justice was bringing a
civil action against General Motors on
the charge of violating the anti-trust
laws, his announcement was criti¬

recently made public their u&ual August revision

of

awareness

belief

and

sions the

appeared as guest on the debut program of the television

real point in what

public's

upon

inflation

marked cyclical

.

.

•AS

ratios," based
trend toward

earnings

.

.

San Francisco

New

Stock

York

Exchange

Chase Manhattan

BROADWAY, NEW YORK 5

34 offices from coast to coast

"

■

-r.

Net Active

To Dealers,

bank and

T.L.WATSON&CO.
•

ESTABLISHED

insurance stocks

SECURITIES
Commission

New York Stock Exchange

Orders

Stock

The Municipality of
Metropolitan Toronto
..

fa1:.
Payable

DEPARTMENT

CANADIAN

in

October

15,

BROAD

STREET

Price

NEW YORK 4, N. Y.
FIRST

£>OUthu>€At COMPANY
DALLAS




Goodbody

&

United

States

Analysis

dollars

99%

to

•

PERTH AMBOY

115 BROADWAY
NEW

YORK

■,

Co.

1 NORTH LA SALLE ST.
■

.

.,

**«*

,

y •

upon

request to

Unlisted Trading Dept.

yield 4.10%

Dominion Securities
Gkpokation

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

*

IRA HAUPT&CO.

MONTREAL AND TORONTO

DIRECT WIRES TO

\

COMMON

1965

Teletype NY 1-2270

25

*■ *

Supply Co.

4% Debentures
Due

Executed On All

Canadian Exchanges At Regular Rates

Exchange

v-.

American Hospital

our

American

f

$100,000

Banks and Broker*

CANADIAN

1832

Members

Markets Maintained

CHICAGO

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

Members
and

New

other

111

Stock Exchange

Broadway, N. Y. 6

WOrth 4-6000
Boston

York

Principal Exchanges

Teletype NY 1 -2708

Telephone:

Enterprise

1820

2

The Commercial and Financial

(1070)

For Banks,

The

Brokers, Dealers only

Security I Like Best

This

week, a different group of experts
advisory field from all sections of the country

in the investment and

participate and give their

Telephone &

reasons

for favoring

Bought — Sold
at

—

uct

Quoted

with

Tiraberiands

RELATED VALUES
REQUEST
;

OF
ON

.stands

of

.

attraction of Penobscot Chemical-

Fibre

of

The

Company.

stock

common

_

Penobscot's

Established 1929

American

value

Member

Associate

Stock

York 5

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

»

BAN FKANCISOO

Principal Cities

Wires to

Private

is
stab-'

lished on a
long - term
main

I

rently

in

mand

and

RIGHTS

SCRIP

&

short
in

the

the

IfcpONNELI&fiX
Members
New

York

American

Stock

^

Exchange

BROADWAY, NEW YORK 0

1X0

TEL. REctor 2-7815

Trading Marhete

Air Control

,,

Products, Inc.

Bank of Virginia

I

•'•■■V

v'

Gas

Company

<

Southeastern Telephone Co.

Scott, Horner &
Mason, Inc..
Lynchburg, Va.
LD 33

Tele. LY 62

resin

Penobscot

probably

be
time

field is currently in
of development,

stock is

common

priced
compari-

below the usual levels in
to

quotation.
chemical. pulp,

of

soda and

Penobscot

Development,

Penob-

scot

Purchasing and Tileston &
Hollingsworth, own timberlands;
cut,

store

and

procure

manufacture

pulpwood

fine

grade

The most important operation is the manufacture of pulp
at the soda and

H & B American Machine
Helene Curtis

Great

Lanolin Pius

Company

ESTABLISHED

37 Wall St., N, Y.

1929

Tel. HAnover 2-4950

anWfhp aca!istfp' snHeS used.
all the caustic soda Iqpri
chiefly to

manufacturers
*

»

with

....

.

is

of

the

purchased

The

from

STREET

5, N. Y.

obtained

of the

from

subsidiary

for

properties

to

Hollingsworth
for

grade

uses

Mass.

—

Refined

—

Liquid

Exports—I mporte—Futures

at

at

and

a

Operating

the

least

of

com-

own

proper

&

very
fine
other high-

plant at Milton,
units are well

U

evaluate

3

nil

1

little too osrly

Penobscot's

resin-plastic
clear

ment has great

from




which

Massachusetts, Pennsylvania, New

in

the

decade

become

Jersey and New York. The ownership appears to be in strong
hands and finances are outstandingly strong.

hub

wasted

that

entrance

field,

it

is

this

developpossibilities. As is

the stimulous

came

by-products.

An

energetic research department
studied the problem and came up

Call

a

st

the

Yamaichi
Established
Home

111

in

are

presently

ported by a staff of engineers,
designers and technicians.
Each
division has available engineering

^ irSSSv TY^m 1^9

a

—

to l955
i
^7007

nit

frnm

sales have
947

! oJ SieratSna

leased
*5 9^5

in

before

income

DELHI

CANADIAN

PETROLEUM, LTD.
Common Stock

WISENER
"

-

.

73

AND

COMPANY

LIMITED

-

.

„

.

* ' * ./

,

King St. West—Torwtt, Canada

oper-

Book value of Penobscot stock, proved
effective
for American
at the date of the last figures Electronics.
published by the company, was
The record of sales and earnings
$61.58 per share. That figure is reflects the dvnamic c^aracterisabout double the present price of

$25

Trading Market

United

A

Continuing Interest in.

Commonwealth Telephone Co.

GrinnellCorp.
Kalamazoo

assistance
from
raised from
and, of course,
and a year-end extra of 25 cents from the top echelon which may
was paid.
The extra should be be likened to GHQ.
paid again this year.
Thig
type
of
operati0n
has

as

-

Branches

70

States.

share. True Five divisions

much

1897

—

Maintained in

and
technical
15 cents to ?0 cents other divisions

as

Tokyo

Investment Bankers

Broadway, N.Y.6 COrtlandt 7-5680

Firm

onishing

earnings were, therefore, substan- ated, each division being autontially higher than reported. Cash omous with a chief engineer r,eflow amounted to $6.98 per share sponsible for its operations sup-

is

Office

Brokers &

showed notable gains. Sales
for the period increased to $18.6

itself,

write

Securities Co., Ltd.

1956

°lan,?1?sis
fig-

or

the

industry

Earnings are in a rising trend,
The fiscal year ending March 31,

economy,

information

this

of

•

current

have

to

seems

improved Japanese
For

,

An¬

last

.

.

Vegetable

Parchment

Keyes Fibre Co.
BOENNING & CO.
.

.

Established

1914

1529 Walnut Street
Broadway
Philadelphia 2, Pa.
New York 6, N. Y.
LO 8-0900
CO 7-1200
ATT Teletype PH 30
115

-

de-

s'larebelow realities. Th'e figure
would depend on appraisal of the

preciation, amortization, and Fed£rpl ;npnmp
increased from

comnany's 480,000 acres of timberlands, which are carried at cost-

?

jesg

varjous

an

charges—at

of approximately $3.90

average

an

reserve

acre.

<ci

? 400 tn

*779 659

or

Judging
from
other
pulpwood field in*= groups.

and from "horseback" observation
.

.

.

real

value would

at least $10

book.
would

add

of the stock
per

seem

.

in

.

.

share.
in

for

a

total of $85

Penobscot

the

wait.

w^h

berlands.

shsros
less

stock,

Over-the-Counter

the

weather

planes and ground power sunolies
industry in general.
These
include

motors,
plant

all

types

which

for

this

of

fractional

provide )

OVER-THE-COUNTER

equipment,

—

shout 31—is hslf of bookj

it appears probable that

company

will

be

bought

by

TnJJwinnai
interesting.
International
Paper
is
currently
negotiating
intprpstimr

cloi

isotoposj

slso

N. Q. B.

power

tim(2)
Nucleonics, encompassing
Present price for the the use of and application of nuresource

^Impl^ oT^mXricqui^mons
Prp
are

as

for

who

man

than

run

the Armed Forces such

has inflation protecreliance on a self-re-

It

nine times last year's
earnings per share and a little
over four times cash flow. In the

long

_

(l) Electrical Equipment, producing
400
cycle
power
units'
pricipally for industry, electronic
plants, research laboratories, etc.
—ground support equipment for
simulators for the Air Force's jet

Market, is ideal for the
fton

be

_

review,

traded

can

to

acre above present
adjustment,
alone,
$24 to the asset value
an

This

nOVJK I Hfif

6 150 <7

t0 ?779'b»M' °r/af,%\

Fields served by The American
Electronics, Inc. can perhans best
be broken down l/to the follow-

transactions in the

d rehablllty newing .natural

often the case,

DIgby 4-2727

the

Tileston

makes

books

the

of

Suoply

provide

Although it is
into

sources.

softwood is

company.

paper

to

pulp

draws carefully from its

m

Raw

Los

in

in

indicate that the book

practically

at

stationary levels for three years
now appear to be stirring due

plants located

share

ure,

offices

STOCKS
after remaining

to

by

stockholders

branch

our

.

geles, Calif.,

by

to

JAPANESE

120,000 shares of non-voting stock
are largely held in
50 to 100lots

-

T

WARREN H. CROWELL

while

..

remaining 35% of the hard-

wood and 40%

^t^n^npr
SUGAR

...

.

local

cutting for regrowth.

WALL

lesser

..

hardwood

timberlands

NEW YORK

paper

amounts sold in the open market.
About 60% of the softwood and

pany

99

Sales

four larger

material is assured; but

LAMB0RN & CO., Inc.

the Pen-

on

tained hydro power, steam-electric

65%

CUCanA

sulphite plants at

Works, Maine

-

Murphy Corp.

held

family;

NY 1-1557

Mobile, Ala.
Direct wires

Last year,

closely

are

management

»,S^tedhw«hPl^ ^ the
fully
integrated
with
self-con- would

are

HAmw* 2-0700 -

the latter promptly doubled.

per

sulphite, for sale to companies manufacturing paper and
paper products is Penobscot's for the year ending March 1956.
principal activity. .The business In spite of this handsome cash inwas
founded
in
1882.
Three take, dividends are meager.
In
wholly-owned
su b s i d i a r i es,
June, 1955, the quarterly rate was

papers.

Trading Markets

$27

Exchange
Exchange

New Orleans, La. - Birmingham, Ala.

A-rican Elect,oalos

amounted to $3.10 per

Production

and

Birdsboro Steel

current

Net
over

Stock

Stock

Scott Paper took over Hollingsworth & Whitney and the value of

In 1945, three
Despite
only
moderate
you n g
en¬
dividends, the shares have marked million from $16.5 million and net
gineers pooled
thei'r
intel¬
appreciation
possibilities.
The'"increased to $776,610 from $484,- Warren H.Croweu
special fascination, however, lies 174 of the year before. Per-share
lectual and
in the possibility, that sooner or results for
and
formed
1958 were $3.88—as financial
resources
later one
of
the
larger paper compared to $2 32 in fiscal 1955. what is now the present company.companies is likely to attempt to In each year, the company took These men, borrowing the favoracquire Penobscot. In that case, conservative measures along de- able aspects of a military table
negotiations might possibly begin preciation, depletion and amor- of
organization,
patterned
the
at a price for Penobscot stock tization lines.
The total of these physical
character of American
more
than
double
its
present charges as applied to fiscal 1956 Electronics along this principle,

earnings and also to book

Value.

Alabama-Tennessee Natural
'■

.

process

son

Stock Exchange

will

in
supply for some
to
A sparkling new product

come.

Since 1917

chemical pulp for
manufacturers, is cura
rising-trend of de-

paper

to

are

1954,

outstanding

product,

American

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

Partner, Crowell, Weedon & Co.
>
Los Angeles, Calif,
Members Los Angeles Stock Exchange

the

The

§ Specialists in

the

H. Bradford

E.

New

Members

I have chosen "The Security I
$274,300 of 7%
preferred stock Like Best" from the field of Elecwas retired.
Common
consists in tronics.
My choice is The Amervoting and non-voting shares. The ican Electronics, Inc., with general
offices
and
voting shares of which 80,000 are

i nf I a'ti o n,

basis.

'In

cured 4%s due in 1968.

Business
e

amount

York

Members

-

give full pro¬
tection against

well

Steiner, Rouse & Co.

geles, Calif. (Page 2)

due'

to

as

Crowell, Partner, Cro-

well, Wee don & Co., Los An-,

the company issued $1,400,000 4Vs% first mortgage bonds to replace 5s.
Titleston & Hollingsworth, the subsidi-

Properties are
sueh

strong.

assets

nat¬

in

management,

share.

appeal
bargain-

ural resources.:

ExchanfO

120 Broadway, New
WOrtb 4-2300

exceedingly

t

H.

ren

predated sharply. Some time ago,

>

finances, reflecting

conservative

a

un¬

'

interesting
has

as

The American Electronics, Inc.

,

company

in e n

Corporation

Bought—Sold—Quoted

-War¬

this product as a plastic material.
The full significance of Penob
cannot, however, be determined with Long Bell Lumber and, as a
until it has been more - widely, result, Long Bell shares nave apmarketed.

this

Re¬

prod-.

new

a

product will be marketed

unique invest-

MHanseatic

New

and

resin for plastics.

a

Louisiana Securities

Co.—

Dept., F. L. Putnam &
Co., Inc., Boston, Mass. (Page 2)

perimentation and pilot operations
show
considerable
promise
for

growing pulpwood are the feature
TABLE

solution

Fibre

Manager

Bradford,

search

der the name "Penob." Initial ex¬

Penobscot Chemical Fibre Co*

on request

a

...

new

F. L. Putnam &

NET Prices

prospectus

with

BRADFORD

Manager, Research Department
Company, Inc.
Boston, Mass.

(w.L)

Common & Rights

It

H.

E.

(The articles contained in this forum are not ..intended to be, nor
they to be regarded, as an offer to sell the securities discussed.)

EDWARD

Chemical

Penobscot

are

Telegraph Co.

'.'"Alabama &

Their Selections

particular security,

a

Week's

Foruip .Participants and.*

A continuous forum in which, each

:r% American

Chronicle...Thursday, September 13,1956

nuclosp

lesk

7

INDUSTRIAL STOCK INDEX
14-Year Performance of

detectors for the

military and industry; for the medical field, the
scintiscanner, which will photograph

soft tissues (presently
possible for X-Pcays).
I
,

(3) Instrumentation, the

facture of such products
Continued

on

FOLDER

ON REQUEST

im-

manu-

as

35 Industrial Stocks

syn-

National Quotation Bureau
Incorporated

46 Front Street

page

22

New York 4,

N.Y.

Volume

184

Number

5568

..

.

The Commercial and Financial Chronicle

(1071)

Electronics Comes of Age

N D E X

t£:\

By W. R. G. BAKER*

Articles and News

Vice-President, General Electric Company

I

President, Radio-Electronics-Teievision Manufacturers Ass'n

Electronics Association President
of

the

assesses

Can We Improve

i warns

Is Our Anti-Trust

was

Gillette

premature; -praises the marketing of

.

•

;

To my mind the electronics in¬

—James

.

bilities toward

However, despite the large

Responsibili¬

approximately

ties I will dis¬

Canadian Economy

50

—W. E.

dollar

volume

of

WALL STREET, NEW
YORK

---..i.

URANIUM
6

;

_

STANROCK

Management—Joseph H. Humphrey

arid Its Bearing

STANCAN

' ' 6

,

Steadily Growing

a

10

URANIUM
12

International Trade

on

FEDERAL

Scott

Suez Scare

end

13

equipment
production. And about 150 of the
component companies are respon¬

of

Stock

vs.

Market^Roger W. Babson_

sible for 80% of the total compo¬

WHitehall 4-6551

5

URANIUM

manufacturers

account for more than 80% of the

im¬

are

buy 'em!

Telephone:

4

—

___

in

kind

are

Obsolete Securities
Dept.
99

Bargains in Railroad Bonds—Chester S. Everson_—

num¬

portant ones.
Upon the ac-

cuss

—

C. Luitweiler____

Investment Company

ber of companies in the industry,

society. The

,

4

Economy—David Q. Hill.,

..t

what

Merchandiser

People's Capitalism

Cartwright___

I.

'

-

care

"dogs" they

—we'll

3

_•

Wealth Due to

What's Ahead for Glass Industry

component man¬
dustry has come of age and," like ufacturers, while the remaining
any
youth, when he grows to 600 companies
associated
with
man's stature, must assume cer- the electronics industry produced
tain responsi¬
various related types of hardware.

,

Successful

of

,r

don't

Stock Market Reappraisal for Last Quarter of 1956

about 2,000

were

•

.!^.,;.^

Uruguay: Hard-Pressed Economy—A. Wilfred May—

take advantage of' UHF which,
be lost to the industry. * '*
r

otherwise may

American

Edwin O.

the* time is' opportune-*—to

'

Fabulously

Cobleigh_____-_i._i.__-

Miracle of

industry's responsibilities in terms of capital flow, avoidance
of governmental intervention, and
supporting education; and
urges effective use be made of the radio spectrum-^-how that

A

'

4

Cover-

Company:

—Ira U.

summarizes the excellent results de"cross-pollination" between military and commerclal needs; lays down the requirements and
advantages of
rived from

i

HOUND DOGS?

We

.

Electronics Comes of Age—W. R. G.
'Baker-r-^..:

low price ."portables";

;

^__Covei"

Policy in the Public Interest?

—Robert E. Berry

against inferior marketing and questions whether color

TV's introduction

:

Stocks

_w__.—,—__

:

the

Hill

AW COMPANY

i.

Our Methods of Appraising Growth

—Ralph A. Bing

responsibilities

industry, reviews the past phenomena! growth, and
predicts, in this industry which has come of age, an increase
from present $9 billion to $15 billion by 1960. Dr. Baker
♦

B.S.

Page

-

.

3

14

PACIFIC

Free Competition in Practice:' Its Advantages and Risks
—Charles F. Phillips

URANIUM

15

v

ceptance

these respon¬

*

Equally impressive are employ¬
ment figures. The electronics in¬
dustry provides employment for
more* than one and three-quarter

by

the electronics

industry

rests

"

not

only the

million

and

success

Americans.

*%'

*

U

nent business!

sibilities

LISBON URANIUM

^

*

Investment Course to Be Held at New School.
Dr. E. 11. Gutmann Opposes Gold

!

(Letter to Editor)

12

Convertibility
29

_______

This amounts

J.F.Reilly&Co., Inc.

•

to

profitability
of

indus¬

the

Dr.

W.

total work force.

our

W<*Ker

persons

Even

in

our econppy

success

10
10

tne

and per-

vpnrs

ncrn

years ago.

'*5

m

lar

invested their savings in our busi-

We cannot treat these

level

As Hal March
"We have just reached
first plateau."

the

'

In order to realize the scope

a

of

Like

Topsy, the electronics in¬
responsibilities, let's pause for dustry "just grew." In many re¬

moment

size

of

and take

look at the

a

it

spects

industry. It has been
said that electronics is the fourth
our

not

was

First the

growth.

orderly

an

effort and

war

later
the
expanding
television
industry in the country. development snapped up every
.I'm not going to argue with the product and every component that
petroleum or chemical or automo¬ was produced.
;;

•largest

tive people about any exact rela¬

tive rank.

one

The

The important thing

that we're

•

is
largest in¬

of the

up

and

confusion

of

manufacturing covered
mistakes. It was almost

many

impossible not to make profits in
producers market. Of course,

a

Industry's Size and Growth

companies which

many

At the end of last year we were

the

during

war

years

were

•

of

about

you

think

crease

.Can
ma

j

In

.

many

industries
the

1955,

manufacturers

•

of

con¬

total
of

electronic

type

sub-assemblies

in

the

of

entertainment,

market.

•

-

or

military fields.

,*Ail address
Western

tion,

ucts

some

Angeles,

There

Show

Aug.

and

24,

for

not

are

until

com¬

Dr. Baker before

by

Electronic

Los

-•

'•

■'

'

'

TtKJ

the

the

put

the

on

•• ;

product is ready for the
the

and

is ready
Premature and

poorly planned marketing

the

Continued

on

can,

in

page

Business Man's

Coming Events in the Investment Field-—

8

Lanolin Pius
9

Keniiind Oil & Gas

From Washington Ahead of the News—Carlisle Bargeron.

14

TMT Trailer Ferry

Indications of Current Business Activity

46

*Prospectus

Reserves"

Mutual

Funds

;—

8
K

News About Banks and Bankers.-_______.L___

Observations—A. Wilfred May__

Members New York

Stock

Reporter's Report

TELETYPE N. Y. 1-5

•

j' Boston

-Nashville




•

•

•

,

Chicago

Schenectady

.

•

•

<

Glens Falls

Exchange PI., N.Y.
Wires

47

——

Public Utility Securities
Railroad Securities

32

36

to

Chicago * Los Angolas

*

20

The

Offerings-^--

Common Stock Around $4
Started

——48

rowed

20

in

1953

trailer,

$9,000,000.
»

\

"

FERRY, Inc.

5

—

Weekly

.

attention:

our

2

The State of Trade and Industry-

Twice

to

come

16

Like Best--——

Washington and You-

and

TMT TRAILER

27

_____

and You—By Wallace Streete_

The Security I

dynamic

42

_____

L_

Salesman's Corner

Security

The Market.

most

fastest growing enterprise
to

Security

Prospective

Gardens,

Drapers'

1

London,

.

COMIVIERCIAL and

FINANCIAL CHRONICLE

E.

C.

Eng¬

Edwards & Smith.

C/o

trailer

and

of

U. S.

and

the

doors

to

bor¬
over

frozen

platforms

where in

a

today total

TMT's "Fishy-Back" picks

general

loading

Copyright 1956 by William B. Dana
Company
-

■I

up

with $500 and

assets

cargo

from

shippers

any¬

carries it

of

in same

overseas

con¬

"

Reg. U. S. Patent

Reentered

Office

second-class

as

matter

Febru¬

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

ary

Park

DANA
Place,

COMPANY, Publishers
New

2-9570

to

Subscription Rates

9576

in United States,
U.
Territories
and
Members

Possessions,

Pan-American

WILLIAM

DANA

SEIBERT,

President

Thursday,

Sept. 13, 1956

Union,

Dominion

Canada,

Other

market quotation
clearings,

statistical

records,

corporation news, bank
city news,, etc.).

and

Worcester
Other

Chicago

Offices:

3,

111.

135

South

La

Countries,

and

rate

of

be

made

in

per

year;

per

of

of

New

the

15

trailer
to

vessels

over

$30

annually.

Send
of

for
TMT

6-page

description

covering history,

operation

Monthly,

fluctuations

and future.

in

General Investing Corp.
Members

American Stock

Exchange

for for-

ad"ertksements must

funds.

of

revenues

.

—

remittances

York

addition
increase

in

year.

year.

Record

It is estimated that the pro¬

S.

(Foreign postage extra.)

account

exchange,

fi"hKcHnt*o«s

Salle St.,

per

$63.00

Publications

Quotation

$40.00 per year.
Note—On

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Other

Bank

the

(Telephone STate 2-0613);

of

y

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

.state

posed

million

Subscriptions

SEIBERT, Editor & Publisher

HERBERT D.

signees.

could

York 7, N. Y.

Exchange

•

40

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plete
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Direct

Our

ST., NEW YORK 4, N. Y.

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Mackie, INC.

&

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♦

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_

—

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on

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NSTA Notes

WILLIAM B.

Spencer Trask & Co. s
•

Baruch Oil

Einzig: "The Future of British Sterling in View of Declining

REctor

BROAD

Revlon*

8

Dealer-Broker Investment Recommendations

25

25

•y>;

47

Bookshelf

land,

PREFERRED STOCKS

4

1-4643

22

market

product.

Teletype NY

Cover

Bank and Insurance Stocks

The

specialized in

DIgby 4-4970

"".r

i_.

llIi

Broadway, New York

r

i

(Editorial)

Published

have

- ^

market

Conven¬

1956.

For many years we

<:

Securities Now in Registration-—

.

end

market

mercial,

,"

As We See It

Regular Features

either competition or a consumers

of

number

There
is
no
reason
why this
equipment, components, and hardgrowth
should
be
ware
was
estimated at 3,600 by phenomenal
retarded but, in some respects, it
the Electronics Production Re¬
should become more orderly. It is
sources Agency. " Of these,
1,000 part of our
industry responsibility,
firms produced end equipment or for example, to see that new prod¬

major

!''

.

1950.

sound, ethical principles of busi¬
other ness and economics.
Companies
have of this
type have no reason to fear

which
81% in the laist five years?

or

grown

since

81%

(>..

.

born

have

producing equipment and services tinued
to grow and expand. These
at an annual going rate of about
are
the firms which were con¬
$9 billion. This represents an in¬
ceived, founded and operated on

.

.

pressure

war-time

dustries in the country.

f

•H

by 1960.

would say,

re-

!' sponsibilities lightly.
our

42

,

success

,

nesses.

35

more

of ou£
Growth Potential
defense
against aggression.
We
Our growth potential is unlim¬
\ have responsibilities to the public,
to our customers, consumer, in¬ ited.
Many
forecasters
believe
dustrial and military, to our em- that our $9 billion industry of to¬
day will reach the $15 billion dol¬
ployees, and to those who have
;

Shop Worn! (Boxed)

significant is the fact that 75%- of
and prof¬ these jobsf!didn't even exist just

try, but to a
large extent the

itably of
"Jiaps* even

G.

K.

out of every 40

one

80 Wall St., New

York 5 • B0 9-1600

4

The Commercial and Financial Chronicle...

(1072)

for

Gillette Company: A Fabulously
Successlul Merchandiser
4
By IRA U. COBLEIGII

An autumn look at

tne

to

Com¬

ing

the

strop 1

ess

Toni,

Prom

seven

Toni

lion

and

o r

i

z

glamn

by

g

financing), it has already
produced total net earnings above
this purchase price; and Toni sales
presently account for about 32%

and women of the world with

men

ball point

Gillette,
in

i

pens. Quite
sensationally

a company,

successful

building a sound, basic idea
a $200 million ' annual busi¬

ness.

idea

and

the founder,

of

Gillette,

find

Still

,

The
C.

simply

was

manufacture

article filling a wide

motif, Gillette on Sept.
30, 1955 purchased the Paper-Mate
Company, a leading manufacturer
and merchant of ball point pens,
and the cartridges to refill them,
repeatedly.
The ball point pen
has now becbmfe themajo? ink-

King

low

to

cost

public need

(preferably patented) which, after
it

sold,

was

and

could

create

vast

a

unending repeat and replace¬

delivering
strument,

American writing in¬
with
Paper-Mate "a
major factor in the business. It

ment order business;1 The Gillette

safety
tised

filled the bill; it was

razor

patented,

trade

and"

sold

zeal that have

in

ary

marked,
with

adver¬

skill

a

become

now

American

contributes

now

and

10 %

about

merchandising;

plants are located
City,
Calif.,' and in

an.d the repeat orders for

Gillette

in

and

reached

production in
particularly signif¬
icant
since,
by locating there,
manufacturing operations are
exempt from ta xation for a
certain period of years.
Gillette
paid $15 million for Paper-Mate.

Blue

Blades

untold billions.

Today,
not

the

only

and

the

but

razor

*

;

.

Gillette

Company
safety razors,
to

cream

sells

.{blades

used

States,

and

all

double

edged

with

go

than

more

United
the

Puerto

Rico.

This

Puerto Rico is

'

,

produces

shaving

them,

have

y

Culver

half

in

the

75%

of

variety.

If

over

Paper-Mate annual, sales
a

earlier

advertising programs were
effective (and they were — fabu¬
lously so) the current ones are

third

are

larger than that,

and

the

sustained sales
considered bright.

in¬

prospects for
crease

now

are

Gillette is not merely a

highly

availability of Gillette
blades is constantly kept in your

profitable enterprise in America.
Gillette sells its products in 114
countries, and almost 50% of net
income, after taxes, comes from

mind

foreign operations. Major

certainly
tion.

carrying

The

on
the tradi¬
continuous and ubiqui¬

tous

by the 18 year old "Caval¬
cade of Sports" on the air
waves,
and
by Gillette

sponsorship

World

Series and

All

of

Star games

both radio and TV.

sion

-

outside

the

United

expan¬
States

would
include a recently com¬
pleted plant in Montreal for Gil¬
lette and Toni

large scale advertising outlays are
productive is evidenced by the

operations, and en¬
larged
facilities
in
Brazil
and
England. About 25% of Gillette's

fact

net assets are overseas.

on

that

year

That such

Gillette blade

reached

Having

an

done

much

so

proving

the

Gillette

decided

sales last

all-time high.

to

for
of

appearance

work

Gillette plant is in Boston.
Gillette can be definite 1 y
classed as a growth cmonany. To
.

im¬
men,

on

The main

the

illustrate
sales

this

were

point, Gillette net
not quite $38 million

..

J

.

-

-

■

'

pleased to

announce

that

JOHN F. SAMMON

around

averaged

now

associated with

us

in

present dividend rate
a year and there was a 25
cent year-end extra last year that
could easily be repeated or in¬
creased for 1956.

October

1955.

Security Dealers Association
•

Telephone DIgby 4-6320

Bell System




Teletype NY 1-1525

vestnr6

i

capitalization

sealing abound,
4.3%
(assuming

and

now

52%

E. O.

yield
dividend).
When

our

$2.25

a

company has

a

displayed

about

in

the

dence

is

Gillette

quite

Not

can.

of

case

the

veloping

of

evi¬

their

who

women

American business—

savings in

portion

a

and

common

preferred stocks—the shareowners

impressive that it

—every

one

capitalist.

a

solid

but the
Paper-Mate lines

newer

"Wall

stock¬

business

well

welfare

come.

in

for

the

years

study of

Stock

ownership"

domination

centrated

to

.

,

Street

of

The

group.

New

con¬

York

Census

Present management, headed bv
Mr. C. J. Gilbert, President, took

American

in 1938 (the year the "Caval¬
cade of Sports" was first spon¬

8,630,000 people \ own shares
rectly in the publicly-owned

sored) and has demonstrated both

porations

over

of

or

any

Exchange's newly published

"1956

of

Shareowners

Business"

in the

increase

shows

country.

of

in

that

di¬
cor¬

This is

efficiency and vision* It has been

an

many years since Mr. Gillette de¬

Brookings Institution census in
early 1952, when 6,490,000 were

livered his first safety razor, un¬
der a sales plan that envisioned

shareowners.

the buyer,always returning to,the

now

Gillette

one

fills.

Company

Well

golden today
works

and

just

for blade
plan is just

the
as

as

it

ever was;

re¬

it

oc-

At no time

nor in any other nawidespread* bUsiownership existed.^ Nor has a

has- such

ness

progressive
more

past

the

One out of 12 adults

compared

with

foretold

ever

promising future for

sion

of

the

number

shareowners

their

and

securities.

York

of

the

a

expan¬

American
values

of

Truly

the New
Exchange
slogan

Stock

"Own Your Share in America" is

proved profitable in fact to those

it.

And by that fact
Capitalism" hurls
those who preach doc¬

"People's
lie

at

to

our

free

enter¬

prise system.
Now why has this happened? I
think it is because we are begin¬
ning to comprehend the American
economic

"law of growth"; that
surplus dollars invested prudently
work for us to provide steadily
rising standards of living in the
future, In spite of recessions-and

depressions,
American
tinuous

long-term chart of

a

business

records

expansion.

The

con¬

average

rate of growth for the past decade
has been about 3% annually and
the average dividend return from
and

common

about

preferred stocks

4.7%.

was

Compound progres¬

sion at these rates is

easily under¬
as a vital force working for
long-term investor.

stood

and it

well among women
as

since

in 16 in 1952.

In

as

did

originally
for shaggy visaged hombres anx¬
ious to smooth up and look sleek
penmen

33%

shares

owns

ownership

recorded since 1952.

was

the

new

ownership in these United
States which rudely abolishes any
remaining vestige of the myth of

divisions

augurs

a

share

growth projected for these

share

trines inimical

There is at hand

perfectly into the overall pro¬
gressive merchandising methods
of the company; And the rate of

in

who practice

Shareowners

advances,

and

group of ownNo other category acthan 18% of all

to 25>000 where a jump of 125%

our

110,000,000 Direct and Indirect

fit

holder

and

men

own

only has the traditional

Toni

new

and

those who have invested

and blade business been de¬

razor

the

actually

single
more

Geographically the greatest in-

^ of his
li- w£o«tion

system

towering financial and numerical,
political, stature. I choose,
therefore, to "begin at the end,"

long, uninterrupted ad¬
corporate prosperity as
Gillette, there is frequently raised
the question, "can this keep up?"
In

American

{

for

and

represent

women

shareowners.

pnmLS S ?«

hence

a

vance

so-called

largest

versus

Housewives

men.

ers^—34.2%.
counts

crease

th<feconomic

Cartwright

the

to

for

permits less curred not in the large populatmn^ci8 ,lnn tion centers but in cities of 5,000

consists

rt

the

That

ro+H

-

merely of the aforementioned $6,000,000
in
debt, and, 9,282,848
shares ,$f{^qommon lijsfteql NY$I£

,

,

.

addition,

another

1,400,000

own
shares in private corpora¬
tions, indicating that more than
10,000,000 people hold direct ownership of shares in the economic
wonder - of - the - world ca lied

American Business.

the

Our

comprehension stems par¬
from
widespread
public

tially

education

in

program

a

period of

unparalleled prosperity. Economic
studies have shown the virtues of

investing money in the securities
Moreover,
some
100,000,000; of sound American corporations
people are indirect shareowners. for
Jong periods of time. We have
not
a
"five
o'clock
one";
but through their savings in life in- learned
to
invest
our
savings
rather one of the most impressive ; surance
companies, pension funds, rather than borrowing from the
and large scale agencies for the
profit sharing plans, mutual sav- ? future.
This
contrasts
with
the
distribution
of
specialized
con¬ f ings banks, and other financial in-;
frenfcy of speculation indulged in
dow

of

Gillette

Mr.

goods

on

a

is

obviously

world _wide

enduring tribute to
the virtues and possibilities of our
enterprise system.
an

stitutions that invest part of their

funds

in

The

nected

with

Mich. — Bagdan
has
become
con¬
A.

M.

Kidder

&

Guardian Building.

Co.,
-

shareowners
comes

ritt &

now

Co., Inc.

—

with

of life.

of

have

of less than

all

Al-

direct

household

$7,500

in-

shareowner, indicating that all
of

their

income

dividends.

The

is

or

derived

numerical

increase in shareowners has been
-

greatest

in

the

Rodney H.
King Mer¬

♦An
the

address

American

$3,000

I Aug.

23,

to

$5,000

by Mr. Cartwright before
Student 'Assn., Amer¬

Law

ican Ba»- Assn. Annual

1356.

too

was

the

effort

an

profit

people

many

when

in

the

principal

to

make

a

small capital and

on

late

object
quick
a

debt, withTittle reason except
haps a so-called "tip."

large
per-

per year.

One person in 36 with incomes of
under $3,000 per year—many of
them
older
and
retired — is x a

part

by

1920's

^

America

own

every walk

The Financial Chronicle)

PONTIAC, Mich.
Morrison is

who

two-thirds

from

Joins King Merritt

equity securities.

people

belong to
most

(Special
*

of

into the hands

.

(Special to The Financial Chronicle)

Broadway, New York City 4

channels

'

Present

DETROIT,
Pochmursky

42

the

underwriting

has paid dividends,
hiatus, for over half a
century; and there was a 2-for-l
stock split in 1950, and another
in

0f the shareowning family,
48.4%

cw0 u r. s e non-employed

Gillette

With A. M. Kidder Co.

Member New York

t heir

o w

through

Over the longer

trading department

JOHN J. O KANE JR. & CO.

j.l

without

basis, and
our

j rities and fol-

The

sumer

Is

-

-

is $2.

a Saturady night date, or Sun¬
day church. The lengthened sha¬

are

,

;

tfons and methods of the financial market; praises his firm's
its
expansion .without
^.
financial educational leadership; and claims "no other indusCapital expenditures are
currently being made at the rate
; try • , i * so constantly warns its customers to learn the
facts;
of about $6 million a yeai', of
understand the ri$ks . ., • provide first things first. i
«
which about $2 million -is supplied
Our subject has so mahjcfacets< arid in the
by the depreciation account.,-$5,000 and over incorrie
Many investors complain: that that we must treat only with those groups. The greater
participation
growth stocks pay too small.divi¬ seemingly productive of a greater - of> lower - income- earners
has
dends.
That criticism, whatever degree of
understanding. >Logir dropped the median of all ghaireits merits, certainly does not-ap¬
:
i,
call y,
w e * owners to $6,200 frbm $7,500. •
;
'
ply in the case of Gillette. For
kesin
For the first time the number
the past five years, fhe pay-out of
.with, .the on0f
WOmen
shareowners' exceeds
net earnings in the form of cash
of
secilmen; they now constitute 51.6%
dividends
has

for

We

:

debt.*

such

Paper-Mate

compares estimated need of $360 billion of new tools and
plants by 1965 with past decade's new investment of $232.6
billion, in stressing $150 billion of new capital must come from
equities. States double taxation is unjust; reviews the func-

ratio.

current

finance

of

Gillette consolidated sales.

legend¬

3-to-l

a

ranged for the Paper-Mate acqui¬
sition, Gillette has been able to

run,

stressing the repeat order

business

this:

a

Gillette business.

of total

into

indirectly already own shares in the economic wonder called
American business, as the answer to those who
"preach doc¬
trines inimical to onr free-enterprise system." Mr.
Cartwright

the single exception of a $6
million 3%% long-term loan ar¬

public

distaff

;

31, 1955,

With

year*, has been Paper Mating the

Cobleigh

for

Dec.

share doubled.

Financially the company is in
shape with current as¬
sets (1955-year-end) of $50 mil¬

and

not

was

dition

Dallas broker points to the increasing
"people's capitalism/'
where more than 10 million persons directly and 100 million

excellent

Toni permanents; and, in the past

U.

Ira

Gil¬

added

ended

years

per

■

Dallas/Texas

Net profits of GS have
from $4.9 million in 1945,
to $29 million last year.
In the
grown

only a logical ad¬
Gillette, but it has
proved a highly profitable invest¬
ment. Acquired at a cost of $20,500,000 (paid entirely out of com¬
pany funds and without requiring 68%.

shaving,
lette

Ey EDWIN O, CARTWRIGHT*

they do.

lines and, more recently,

•

Resident Partner, Merrill Xynch, Pierce, Fenner &
Beane,

In

Bobbi
Casual,
pany.
After a piri-cufJ ftome permanent. Other
beautifiers- include
Viv
spending
a
lipstick,
couple of gen¬ Deep Magic facial cleansing lotion,
erations
sell¬ and ~ White*
Rain
and
Pamper
ing
the ad- shampoos.; Because of the sensa¬
vantages of tional growth
hair-do and
beardless cosmetic markets, the Toni divi¬
beauty to civ- sion is developing hew lines which
i 1 i z e d
will fit in with its broad; advertis¬
naen,
via
speedy ing and distribution program,*
owes

Gillette

>

Due to People's Capitalism

piling up of sales totals
especially significant if

not

profits don't rise correspondingly.
the case of Gillette, however,

{-{{{V.A,:;

other side of the street, and pro¬
vide beauty products for women.
It
acquired, in 1948, the Toni
Company of Chicago, leading pro¬
ducer of home wave kits, includ¬

the outer reaches
of
Cape Cod,
including a few
unshaven
days,
reminded
your
correspondent of the very great
:
debt society
on

year

mere

is

net

holiday

Miracle of American Wealth

$177 mil¬

were

This

pass

Now

mass
merchandising, carrying a successful formula to new
heights of earning power yia shaves, waves and paper-mates*

A

and

this total
the $200 million mark,
perhaps by as much as $6 million.
will

of the most renowned companies in

one

They crossed $100 mil¬

in. 1951,

lion last year.

3

Enterprise Economist

1945.

lion

Thursday, September 13,1956

Convention, Dallas,

Shareowners

a

Strong Political

Force
,A total direct and indirect share

ownership by 110,000,000 of our
people represents about two-thirds
of

the

nation's

population.
The
come
to recognize
not
only the economic, but the politi¬
time

has

cal force

gogue

of this host.

of

the

future

Continued

The dema¬

who
on

under-

page

26

Volume

184

Nimiber 5568vYVThe Commercial and Financial Chronicle

m

tj, i -t■•*

Electric Output

*

•v.-

-

'•

State of Trade

f

• a

»

?

A. WILFRED MAY

,

,
.

Commodity Price Index

*.

// Food Price Index ^

and Industry

Auto ,Produc tion

.

/

Business Failures

'.."i

living, in

are

po¬

litical realities."" However, ih anC:*! other top - level interview* J the
l,Y/. Mihistet of Finance, Arroyo To-?./

;

/ ■, / Retail' Trad®;.'

•:

'./of politics—"we

Carloadings

!

attributed the continuing absence
of a personal income tdx to factors

Uruguay—Hard-Pressed Economy
^

Steel Production /'/

y >

>

5

(1073)

-

May,

remedial

/

J

:

Lahore'

anvernmpnl

^nc0me

'

.

,>/. in the

4.

taX,

,

,

v^/poHcie,. Finds government .leaders,... ,individual

growing acceptance and rationalization of unsound conditions

.

v

Find*

nnliries

and

measures

,;^;remedial

fji
-

basis of first-hand investigation, reports political
obstructing the adoption of." needed:; J:rros, insisted that imposition of

on

and economic pressures

vidual

an

undermine

*

liberty-

There is

of budgeting, taxation, and subsidies/"•'*/'

areas

Would

income tax op indi¬

no

incomes, although there is

•v,JL>uh &: Brad^treet*
V marizqs the business situation

///^ Slight:increases;were^repd

..

.

_

/ power* and coal this; week, while the production .of

lumber, and food products

_

automobiles,f

^

.

the" increasing

pmy,,

pressure

on

below that, of tjhe previous week:
i-whicb puts her government in the
Total industrial output was sustained at a high
level*' and exceeded v : pOSitW,of embracing socialization
was

that^of ;the wrresjponding week las.i

year;

;;,// ?v///

-

Steel/mills operated at. 98:7%' of "capacil^ thi^ week. Output /
climbed 2%;. and .wa"s' T%' "higher than thie year ^go leveL
Ap-

^

;;0id-;tail/'-iV'- /;
Typical Pension Abuse ; ;; v
Furthermore, whilevprofessing*
The Gountiry^
Here: again,; - as/hr: othep ;South hi$ Idevptioa to. stabilization .us an*
,

..

jpliance; man^
-automotive~ prodi£ers~/r^
boosted their orders for hot and cold; rolled .sheets.{ r v ■1Z; / % : \ ••/
/
A: further, decline in.
autpiho^
was reported; this. /
week, as more plants'
dowh fdr imodel^^d^apgepy^rs*.
tiort of .cars and, trucks--23%, below "the fcoin-</
parable 1955 level. Although truck output declined fractionally^A
it exceeded that of "a- year agoby-2i3%. Total production of trucks

^rom Jan. 1 to Sept. J of this

year

.

level.
:

•

.whs 10 % below the;similar 1955

2ciriS

There

was

2%

a

rise in electric power output

"/Hie most

.a year ago;

?

noticeable year-to-/Z

it remained 7% over the comparable year ago level. Coal
output
expanded 2%, and exceeded that of last year by 7%.

this week,, productlon

6% beloW that of

was

verse

Wilfred

May

"further
duced

Unfilled

a year ago.

American countries,- the inflation objective, Sen.. Torros maintained
is ; accentuated" by -politicOlly-pro-; to me that ''after * all, the ^budget'
hioted wage;ji?es; w$th the; Be&is-. *s of secondary cpnsequehce".j.that

Of- course, there is no• political
Venezuela in Reverse
entity^ courageous enough or
attempting to -solve "thonvise . able
to .change me .Tims, we sa-tte conTOsc of
the exehange problem by' stimu- situatlOn-'
»
.
.w.
.
Venezuela.where wealth and free
A.

2% rise in output-V decrees

a

s

it

¥nad--jbbS; Also,-ps with^Ome^f^het/jban;the iituatipp iato1her^ouiif
t r a d e neighbors,
heeded. production is. fries which conceive oi unbalv^i balance of $42 curtailed hy an:exaggerated periancing exoenses as extraordinary
million. Either
system.; Employes ar^ retired hnd not to be. counted;; and xited
V exports^ must .after 30 years, of service, irrespec-. ^e justification;) Of his allocation
^ be increasedi
of age, with the consequence P* 200 million ^pesos/to;-public
&Or.i the stand-; thpt as young :aa 50 years often
instead of to the military
!

-

gains occurred in the Rocky Mountain and West Central
regions. While the production of petroleum decreased fractionally,

Although .paperboard producers reported
eported

e

producing

year

-

m

i w as

<■;

this week, and

u

than

more

;

y'//Ik-"/Sf^

it' wa$ 8% above that pf

.

re-

New

are

^^^n2%(^^^:37%;b^^yea^fe^^He BeV^>tt^^or^a^-curtailing
16^.

orders increased

thev

30%

wprp

ucicareu

there," with the exception pf foo4r^^^^
rriillc, - and- bread,, which are sub
sidized, ^ aV4iiaiW< hi «vw +?ft,

helow t.hnse

rvf

the

norts.,

pnmnar-

-.

via

additional'

.

exrhancfp

ci

lhe

•

;

;

,-..... •

..f;.

,:.xner ine aavaniage oi eacn» xiere
Uruguay, on the other: hand,

remedial/in
of bitter

the

econ-

encountered

yegr-toryear gain. wa? maintained. Flour production
2%, and exceeded that of a year ago by 14%.*

This has been working out
to the great dissatisfaction of cer-

•

S.

categories of exporters,
tably the wool-growers.

^States Saving record was

:

.

,^

time
time

Americans
Americans

savings accounts, savings bond holdings and

policies

ance

rating

.

more

than

had
had

increased
increased

reserves

$1,000,000,000

??fpp

in

more

the

subsidizing

vast

of life insur¬

losses

that savings

reported
38.6%

of

the

;life insurance

portion of the

and

loan

reserves

36.5%.

accounted

for

.

important

system
In the

about

•

Steel users
motive

When

come

into

r

market

with

their

orders

v

for

impact of fourth quarter automotive pro¬
felt, the already tight market will snap shut
like a vise, according to "The Iron Age," national
metalworking
weekly.
/ -•Z x;a;
^
slowness

has

their

consumer anxiety is the out-ofinventories.
While cold-rolled sheets

Steel

"tvi

if

Some

•

are

TU/vwA

"in for it.

«

Those who

short

on

L^.

some

products

now are
3

There just isn't going to be enough to go around.
manufacturers who are heavy plate users have had to
.

cut work-weeks because of
and

conversion

version deals

unavailability of plates. Foreign steel
factors, but importers and arrangers of con¬
finding more price resistance than is usual in a

are

The

"

;

steel

industry is doing its best to meet the demand/but
In other post-strike periods, the operating
bounced back to well over 100% of capacity. This year the
'industry has had trouble bouncing back.
problems.

own

rate

-

The

Maintenance

reason:

and

repair

troubles

at

the

steel

furnaces, at the blast furnaces and

on the rolling mills.
This has
problems of recovering from the strike, which had
the effect of 6 to 8 weeks' loss of production.

added to

the

been

"Steel"

/ :

little

over
•

Reviews the Steel Situation
month,

a

;

".




the
;

:

nation's

/

economy

Continued

has
on

virtually
page

34

quence

as

affording is

well as

a

a

conse¬

>

oause.-;
'

3.::-

i'f

holding

Foreigners'

:

..

may
here

(as in
free

Panama)

still locate

identification;

of

al¬

though, possibly in line with gen¬

quite frankly

greatly diminished in recent years.

'

eral

misgivings, the practice has

OUTLOOK
'•:»

COVERS] THESE TIMELY TOPICS

•

Analysis of Oil Company Management

*

Amerada

Near-Term Oil Outlook Is

placed with the govern-

•

Small

d

na¬
e

agencies;

s u

b

s

id i

have

es

Due

But

477

were

million

pesos,

■

-

„'

'

.

incurred by

in

..

.

the subsidizing agen¬

Deficits

have

14 of the past

17

thus

Accompanying

•

Latest Oil

•

•

No

•

Is

the

chronic

shortage of foreign exchange
cutting down raw materials.
has

Production; of 62 Companies

Canadian

IJlay; Available at Modest/Cost to^^ Investors
Cushion For Economic Reversals in .Current Oil Prop*
erty Prices

Gulf

&

'-//://'•/'://'//;'
Ownership of Oil in Kuwait

British Petroleum

Actually Split 50-507
•

Wide Gains in Venezuelan
-

California

Std.

"PETROLEUM
service that is
firms

and

OUTLOOK"

is

Output Help

Profits of Sinclair,

Socony

the

fast growing,

authoritative monthly

widely read by top-flight oil men, investors

and financial

Subscribe now on
completely satisfied.

throughout the U. S. Saves time, reading, research.

trial basis.

Only $10 for 4 months;

money

back if not

years..

of a

inflation

Growing U. S. Producer Future Candidate For

occurred

budgetary deficits have been
creeping inflation; inefficient pro¬
duction
of
major
commodities
which has accentuated the subsidy/
need;
and
growing
unemploy¬
ment, to a great extent the result

The

Production

Not Good

Purchase

on

expenses 505 million, or
a
deficit of 28 million—plus an
additional
deficit
of
71
million

cies.

For South American

•

Economic

been

.

companies

cleaning

to

•

all

are

"national

The

but with these now all bought up
to their capacity, an immediate
troublesome crisis is presented.

creeping

In

The lack of

great

b t

insurance,

are

tight market.
has its

fire

receipts
ordinary

going into the fourth quarter with well-balanced
may be able to survive the winter squeeze without

users

too much trouble.

afford

to be only partly true.

PETROLEUM

added substantially to the budget:
deficits as reported. Thus in 1955,

momentarily easy during the automotive model changeover
period, hot-rolled sheets have become as tight as' any. product/
.

seems

econo¬

SEPTEMBER ISSUE

V

the budget. For
the? benefit of the consumer they
are
extended
to
wheat,
milk*
bread, meat, fertilizer, poultry,
feeds, and tourism. These have

.were

inventories

'

'

wrought havoc

products.

of

can't

rates.

test
ahead
via
is awaited hope¬

ment-affiliatod ' sideia 1
-

Big problem causing steel
situation

■

it provides

official

the

the

tionalized.

Detroit, books (for all intent and purposes) will be filled for the

baiance

,

Minister Gonzales

"
—
•
succession off autonomous agen¬

.

/.

Z

a

from the legis-

obstructive

the government has been founding

and

Up to now, mills have generally left space open for November
and December automotive orders. But when the word is out from
rest of 1956 for most

up.

of

previously,

models.

new

things

the I. O. U. chips. Railroading,
public ~ utilities, water, accident

platesr structurals and oil country
the part of auto companies to commit
model schedules has led to artificial

fully on 1957
•feeling of plenty in a few other products.
V.-'^
'Tip-off is a recent and sudden tightening of forging bars and
billets and a quick pick-up in demand for. manufacturers' wire
frpm: auto parts suppliers who have already received: their Orders
for the

free

that

Up

on

themselves

foreign exchange
enacted Aug. 3, last.

to

with politics, and

up

cies; practically all having a deficit, with the government picking

to users of

news

some

want

mixed rates, composed of varying

a"

-

■

It won't be

it,"

that

those

are.

that

reflection

On its path of the Welfare State,

full

duction schedules is

•goods. But

is

results in action,

,

the

lature

are

wages

that the pressure

Formalizing and systematising the
multiple structure which obtained

Age" Foresees Tight Steel Market
will get the bad' news in a few days when auto-

companies

November.

prices and

an

of exports,

case

fully.

"Iron

"countries

mies

Fi¬

framework, the

Minister's

nance

unbal-

new

was

percentages

Credit Unions increased meir pro¬

new

commercial banks both declined.

the

of

Retaining the quota system,

savings the first half while

new

of

D.

this

tion.. In

after admitting that his country's
admittins that his country's

extent tied

In the breakdown, the Board

institutions

$7,000,000,000 in

because

an

Creeping Welfare State-ism

-

savings from 2.6% in the first half of last year
but the January to June increase by Mutual Savings and

3%

to

$242,100,000,000.

government

Stnce4 internal price structure.

first

half and it is doubtful if this year's record of $14,000,000,000 will
come up to.. 1954's peacetime record of
$14,000,000,000 in new
savings. In the first six months these savings rose to a record

more than

Ariesto

Picture, has been involving pheno^cienon—-part-war prpcess"

.

r1®

their
their

half year 1955 and $300,000,000,000 more than the first six months
of last year.
This record is, however, 4%" below the 1954 first

•high of

Minister

the

Commerce,

.

$7,100,000,000 higher in the first half

vear;durinsf-which
year during' which

no¬

difficulty both accentuf
by socializa-

ates and is enhanced

.

The Home Loan Bank Board reported Sept. 3 that the United
•of. the
of the

tain

Saving Record $7,100,000,000 Higher,
First Half of 1956

existing situation' in high places;
Thus,

Foreign
Gonzales,
in
discussing inflation and the
Wheat,: which
has
displaced increased government
debt, in¬
meat in importance in the nation's
sisted, that '/inflation is a natural
+
»• .,
u
.
'
.
^

J

U.

xation of the
considerable rationalization.of the

tions.

expanded

economic

of

the

with the cost of
living now running at about 10%
per year.
But, despite the gradualness
of
the
rise,
consumer
prices are now at a very high

JOHN

S.

HEROLD, INC.

Geologists & Engineers

•

250 PARK AVE., NEW

YORK 17, N. Y.

Please send PETROLEUM OUTLOOK for 4 months

NAME

COMPANY...../............../

v

STREET

type,

CITY

STATE.
□ Enclosed is payment for $10

□ Please bill me

CF-l

6

The Commercial and Financial Chronicle

(1074)

treated

were

bile

Stock Mazket

Reappraisal 1
Last Quarter of 1956

For
^

;

Luitweiler

Mr.

individual

maintains

issues

as

the

during the
Korean Incident brought in fever¬

with

ish

nies

nual

of

close

which is
of

rise

a

tween

sev¬

eral

brief

their

investors

yardstick

such

for

dence."

If X represents

This average,

A company

no

t tell the

full story. The

majority
stocks

of

not
James

found in the
averages are

individual

and

"cum-confidence"

praisal

1.

C.

Luitweiler

are expected to be as wondrous
completely enclosed glass skyscraper is today. Finds
longvterm capital investment trend to have a stabilizing effect
upon\the economy, due to investment regularity, regardless of
price,\in hopes of a long-term capital gain. Sees historical

-

hazard^ of carrying large inventories ended because

rigidly

as

a.

Glass

in

town, Virginia.

1608

future

wane

bit,

a

this

house

cession, or

depression j

X

at

minus

company's

original

will
if

So

Cooperating in this
work

a

stock

and

new

cient

lows for 1956, is of suffi¬

importance

call

to

for

an

attempt at reappraisal of the out-

/ look for the remainder of the

year.

It may be a warning of an
early

change in the uptrend of the last
several years.

Stages of Business

portant

factor

sideration.

with the help of his broker.

another im¬
take into con¬

to

Businesses

in

this

erally, however:
on

borrowed

account

to

sell out

Gen-

'

nr

nn

(a

money
a

I

hank

margin

loan)

<=hnnlrl

u *

through four stages: in¬
enough of his holdings to
fancy, adolescence, maturity and pay oft such loans.
old age. This is due to the dy¬
(2) Stocks selling on inflated
namic quality of our economy by pnce levels
gauged by their norreason of research, inventions and mal
price-times-earnings ratio as
technological advances and our above explained, should be sold.
keenly competitive system. Com¬
(3) Stocks of companies whose
panies in the first stage of in¬ longer range outlook for
earnings
fancy with very low present earn¬ at
current
levels
is
doubtful,
pass

ings,

earnings

no

or

often sell at what

price

whatever,

times -earnings

-

of

should be sold.

be¬

unbounded

Of ten-times

it

is

of his

/

holdings to build

up

a

a

lower

price-times-earnings

ratio

described

into

stocks

of

com¬

than

on

the

mature businesses.
Compa¬ panies
whose
business
is
less
hoary with age usually sell sensitive
to
changing
business
the highest price-times-earn¬
conaitions; such as utility stocks,

ings ratio.

Monday Issue

"Chronicle"

for

of

them

the

But this

is

oftentimes

due to inertia ,of investors to dis¬
pose

of

so

stock
well

that

over

have

long lapse of
time.-But it is just such compa¬
nies

that

ined

declared

and

treated

a

treat

may

investors
business.

roughest in times of poor
They should be carefully

dividends

to

be

that

sure

blood

new

assure

and

new

their

there

future

15 years

there has been a significhange in capital investment
policy. Prior to World War II industrial
expansion was largely

concerned with expanding existing plants. New plants and equipment generally were not
large or
complicated.
Facilities could be

built

in

time.
to

build

United

nomic

States

comparatively

a

Decisions

be

based

flexible

were

the

on

build

to

short
not

or

and

could

immediate

eco¬

outlook.

Department of
the
i».

ii.u

A

Interior.

Investments

special

Stabilize -the

Economy !

committee, in¬

companies and food
into stocks of compa-

gas
or

might ' cite

of

the

these

as

above.

For

companies

dren"
vestors

so

far
were

as

the

an
a

were

and

time

"step-chil¬

conservative

concerned.

dealer

in¬

They

but

Mflvbp

mv

t,«

if

some

of

us

took the Bridev Murphv hypnotic

ireatm^
filled

with coonskin caps, leather
moccasins, and bows and arrows.
At any rate, both the glass
job¬
ber
and the glass manufacturer
have their roots deep in Amer¬
ica's past.

General
I

Economic

In recent years,

craft

companies)

there

is

a

of

even

let-down

in

the

air-

you

are

interested in the present and

the

future, than in the past. You
rightly want to know what lies
ahead

from

turer's

the

glass

manufac¬

viewpoint.

So, we've pol¬
crystal ball in an
attempt to see what the future
holds. In view of the fate of some
economic prophets during the past
ished

though
general

business.

up

our

First, let

in

(Speciai to the financial chronicle)

Ashton

&

Co.,

15315

the

this

mists.

DETROIT, Mich.—Rose York is
West

of

experts

instance

Some of

are

DETROIT,
McKeown

has

Mich. —Robert
become

these

for its

(Special to The Financial Chronicle)

Where

F.

at

trends

in

think—experts

meaning

these

econo-

are

fore-

casting a mild slow-down; others
are claiming we are
undergoing a
"rolling readjustment."
A third
group is promoting the idea that
we

Joins D. B. Fisher Co.

look

us

the general economy and find out
-what

With nauiun oc LO.
Ashtnn & Cci'
TTtui

moth

on

the

bit

verge

of

really

Undoubtedly, each

groups

has good

that

confused, to

leave

say

*An

Glass

Building.

Minn.

address

Jobbers

sure

.

The extent of such long-range

planning

can

be

in

seen

reports

planned capital spending comPiled annually by the McGraw-

on

Hill

Publishing Company.
The
of the report for 1956 was
up
in
the
p hrase
"Planned for a long climb."
j This
means, of course,
that businessr

essence

summed

men

and industrialists believe that

report, an editorial in the May
19, 1956 issue of "Business Week"

stated, "Capital investment is sUll
rising. Investment this year, 1956,
is planned to run almost thirtynine

billion

dollars,

a

full

30%

ahead of last year.—Investment in
1957 is
at

the

already planned to
1956

level.—Some

run on

88%

of

the companies surveyed were able
to give specific plans as far ahead
as 1959."
Thus you can see, business and
industry leaders are planning to
literally billions of dollars
in the future of America. This is

invest

a

concrete

lief

in

an

demonstration

expanding

of

be-

economy.

The

report is particularly interesting in that it shows, as a result

of

planned expenditures, that industry
will
just
about
double

present production capacity within the next ten years.
-

reasons

us?

No Excess Production

A

the least.

affiliated

with D. B. Fisher Company, Buhl

feeling

economy,

^ -?ny
exC<T '3
capacity longer term. employed
will be fuljy
over the

slightly divergent opinions.
does

to take advantage of our

the general economy will continue
to rise.
In commenting on this

Trends

think, however, that

"living it up."

aircraft

illustration

long

tented

few years,
I'll
proceed
rather
cautiously in this forecasting busi-

some

The Aircraft Companies

manufacturers

to

°
y 0Perated> but my guess
would be that each trader was a
jobber, distributor,

ness.

(like

McNichols Road.
One

^. Tucker of our
S^dmg this project. The

prospects

with

coverage




Park

nies with brilliant future
earnings

of

success.

payable

stocks,

is

ideas present

continued

natural

exam¬

plenty of research and infusion
to

'when

;

cant

combination

more

nies

than

.-•/

f*

of capital investment planned
by
business and industry. In the past

,

suo-

stantial cash balance.

misplaced confidence for
(5) If one wishess to remain
the mortality rate is high!
Ado¬ more-or-less fully invested, he
lescent companies have a much should switch from
stocks above

helpful

•

future
holds.
One
pretty good
yardstick is the nature and extent

neers
who carried these glass facilities
beads to the Indians were actually dynamic

(4) If bne is inclined to be con¬
servative, he should sell enough

ratios

investors'

cause

*

ridiculous

seem

faith in their future.

more

Na-

(1) An investor carrying stocks

country, like human beings, seem

Nothing

as

however, mamplants have been the rule
^ather than the exception. In these
be-^es^or"ed Slass Plant
?P; are complicated equipment inthat
company's average earnings over lieves
without
necessarily erated as a national historical c}uding automated processes,
say 10 years and comparing them any visible change in the immedi- monument and will serve to reModern plants take longer to plan
with the company's average an¬ ate business climate, the confi- mmd the nation of the important
an(j
an(j are geared to the
nual high-low prices over these dence factor may wane before the Part our industry has played in
long-range outlook. This has had
its growth.
same years, one can find a fairly
end of this year, that this reap¬
a
stabilizing effect on the econ¬
accurate "norma 1" price-times- praisal of the stock market out¬
According to old records re¬ omy. Putting it another way, it
viewed
earnings
ratio.
By
comparing look is written.
during
the
restoration is like dollar
averaging in com¬
their 1956 price - times - earnings
work, the first products of this mon stocks where
investing is
Individual Application
ratio with this normal ratio, one
colonial
glassworks
were
glass done on a monthly basis regard¬
The
gets a fair idea whether this stock
application to individual beads. These were used for trad¬ less of price, in hope of a longis selling at an exaggerated price accounts is
something that each ing with the Indians. And it would term capital gain. The parallel in
level.
investor must do for himself or seem, then, that the hardy pioindustry is, providing productive
There is, of course,

GALORE

to

Service of the

"feast

: :

DIVIDENDS

the

tional

-

ing

the

are

glass industry

or famine." For them a low may occur without any change in
price-times-earnings ratio is nor¬ the
earnings
of
the
company!
inability of so many stocks to get mal. For others the earning power Just the reflection of the cum- andv
Mavia
varies little between good times ex-confidence facto r.
Such a
tip into new high ground when the
and bad times and investors are swing happens to the
Dow-Jones
Industrial
gilt-edge,
Average
willing to buy their stocks on a blue-chip stocks as well as to the
gushed up there, coupled with the much
higher price-times-earnings speculative issues.
j
J1™- 1S.
fact that an increasing nurqber'jpf ratib. t Nevertheless
It
is
because
by taking a
the? Writer

stocks Seem each week to be mak¬

as

its

con-

dition.

below the

reach their tops made in 1955. The

now

possible to

plus

they

25%.

is

nearly

as

factor recedes arid in times of re-*
sell

glass

being restored

•

selling at 100
highs they made earlier it differs widely with the nature represents X plus 25% tnis means
For some com¬ that X is 80 and at X minus 25%,
in the year. In fact, many stocks of the business.
the price will drop to 60. -And this
at their 1956 highs have failed to panies their business is a case of
,

,

,

James-

first

should confidence in the immedi¬
ate

in

As many of you
know, this

X plus 25%^ But

say

of higher,
heretofore,
reduce significantly

prevent,

manufacturing was the
But we are not completely at a
first industry, h a v i n
g loss in trying to fathom what the

have

for years, they will

now

bought at

we

which

manufacturers' prices.

confi¬

a

as

costs

inventory reductions

yard¬

sell nation's
"ex-confi- j been started

in

labor

and

their normal price-

times-earnings ratio,

be

recessions

•

To put it into a formula:

enjoyed

binding

this

on

stocks

and

dent bull market such

that is earning $10 per
share arid selling at 100 is at a
10-times-earnings r a t i o. T hi s
yardstick would be easy to apply
to all one's holdings if a normal
price-times earnings ratio were
common to all types of stocks. But

the

as

a

/'/

■,;<

as:

lighting

panels and glass heat which

better

stocks

observation

more

whole

ap¬

however, does

eve

One

.

is the so-called "priceearnings ratio"; meaning
how many years of current earn¬
ings are necessary to equal the
price at which a stock is selling.

1

of

;

times

and below this

resist

they

simplest

declines above

19 5 5

they

!

ness.

the uncertain market outlook. The

ad-

and

vances

prospects, and refers to such glass products of tomorrow
variable transmission window; electroluminescent

future down-turn in general busi¬

wish to continue price-times-earnings ratio
The
stock
market
investment therein despite stick.

whether

we

have had

if

categories

most

/

lies

growth

;|tkehJ

than

suf¬

individual
determine

their

reappraise

to Pittsburgh Plate Glass head,
ahead. Mr. Hill describes the general
economy's future

expected future earnings seem to
indicate an up-trend it won't bo

surprising

stoc k ho Id ings, to

be¬

In

For

significant for

ficiently
to

only about

3%.

Called

At any rate, it seems to be

/"glass age," according

;

-

economy,

<

]

President; Pittsburgh Plate Glass Company

In spite of 200% per capita glass-usage increase/the real

found in

the

on

national4

business, Aug. 31,

compared with the
close at the end of 1955 of 488.40,
as

maturity

are now

are. now being
ratio of eight or 10
theory chat, their
business has finally become an es¬
sential and important parirdf the

Scrutiny of Individual Holdings

present writing the average
502.04

was

to

By DAVID G. IIILL*
^

passed

on

times

into defensive issues.

the

at

adolescence

a

compa¬

have

earnings, they

bought

disposal of issues having dubious long-term earnings

/
At

these

to

seem

conservative
portfolios.
From a
yardstick of five or six times an¬

outlook; building-up of substantial cash balances; and switch

'

of

best

and their stocks

the Averages

margin accounts; sale of issues at "abnormal" price-earnings
ratios;

The

would

through

of

performance
of

that

In

only to subside
the theory: "This can't

on

Industry
Steadily Growing Economy

and

years

speculation,

last."

Stock Exchange

urgently calls for portfolio reappraisal. Based on price-earnings
ratio and confidence factors, he recommends-liquidation of-

war

quickly

irregular

highly

contrasted

What's Ahead for Glass

decades

some

Then their high earnings of

ago.

By J. C. LUITWEILER

Hayden, Stone & Co., Members New York

the automo¬

were

as

manufacturers

^..Thursday, September 13,1956

Quite
selves

be
by. Mr. Hill before Flat
Association, Minneapolis,

naturally,

whether

markets

to

or

we
ask our¬
not there will

take

tremendous capacity.
who
should
know,

care

of

this

Many people
believe our

Volume 184

Number 5568

.

.

.

The Commercial and Financial Chronicle

(1075)

markets will continue to expand.
They point to some important fac¬
tors to buttress their belief. Our

doing everything we
can to make it
possible for you to
capitalize on these opportunities.

Census

population,

Our

partment of

which

been and

increased

000,000 since 1946, is continuing to
grow and should reach about 178,000,000 by 1960.
Wages are ex¬
pected /to rise as well as the leis¬

researcn.

creating

programs

time in which to
spend them.
Then we have the
amazing growtn
in Gross National

and fabricated items.

Product, spend¬
able income, and other vital sta¬
tistics.

reaction

was

that not enough was

task,

Yet, manufac¬
particularly for the fore¬ being produced.
caster, who can really get himself turers were and are turning the
out on a limb.
However, my per¬ product out better,* faster, and in
sonal- belief is that our economy greater volume than ever before
is dynamic and that it will move in history.
-'"^'''-7''/7forward at

a

steady

In an
expanding economy, there will be
growing
opportunities
for 'the

glass jobber.

pace.

Expansion

of

Production

Facilities
Some

We in the manufac¬

of

turing end of this business have

the

crease

indication

industry's
production

of

the

extent

efforts

to

be

can

in¬

in

seen

of

be expanded to

the

make

report shows that in
eleven and a half*

same

about

million dollars

were

spent for

new

plants

and equipment.
In
1954
this had increased to over twentvfive

million

•There
1955

dollars, or up 17%.
figures available for
1956, but it would be

are

no

and

reasonable

to assume that plant
expansion and improvement are
still going on.
From published
reports, we know that the Fourco
Glass

Company is installing wider

drawing

machines;

Window. Gl&ss

American

is

tanks;
and
Libbey-Owens-Ford
Pittsburgh Plate are expand¬
ing both window and plate glass

facilities.

building

new

.

:

new

have

pro¬

duction effected through improve¬
ment

and

expansion of older fa¬

ies.'.-:/"'

into

■

Inventories

ities.^ Libbey-Owens-Ford has, ac¬
cording to published stories, put
units

way

body maintain adequate inventor¬

progress has
been made in providing new facil¬

new

What this would total, I
of knowing. But it

no

should be sufficient to help every¬

cilities, considerable

several

glass producing facilities will
quite a
bit to
production

add

7 capacity.

•;

Apart from the increased

It

seems

to

me

that in

ter of inventories occupies a most

at

Toledo, Ohio.
At Nashville, important
position.
Historically
Tennessee, the Ford Motor Com¬ the status of inventories has had
pany is completing what reports a
pronounced effect on our econ¬
say is the "world's largest glass
omy. As recently as 1954 we had
plant."
Last
(February)
there what was termed an
inventory re¬
were reports that a hew window
cession.
This simply meant that
glas plant was going to be built goods which had been accumu¬
at Bryan, Texas, Pittsburgh Plate
lated, possibly as a result of the
will soon roll its first rough plate
Korean War, had reached unman¬
from an entirely new facility at
ageable proportions and were be¬
Cumberland

plans

for

and
new

a

is

working

on

ing liquidated. Because of the tre¬

glass

window

mendous consumption of goods in

plant at Decatur, Illinois.

f

r

,;: Continued

$30,000,000

3.30% Serial Bonds
Dated

September 15, 1956. Principal and semi-annual interest (March 15 and September 15) payable in New York City at the Office of the City Comptroller,
Coupon Bonds in denomination of $1,000, convertible into fully registered Bonds in denomination of $1,000 or multiples thereof, but not interchangeable.
7

t

ft

<Jm

'2

"r

•

Interest

>

'

i

:

'

'

m

.

■.

O'

ifh

■

-i

■

.

"

.

'■

]'<

.

•

>''/

:

V;."

v

A

:AJ

•

7'7:

••J-jy'-.

,

:• y tyi-y •

Exempt from Federal and New York State Income Taxes under Existing Statutes and Decisions

r-v.H-

Legal Investment for Savings Banks and Life Insurance Companies in the State of New York and for
Executors, Administrators, Guardians and others holding Trust Funds for Investment
under the Laws of the State of New York

AMOUNTS, MATURITIES AND YIELDS OR PRICES
Due $2,800,000 each September 15, 1957-61, inclusive

$1,600,000 each September 15, 1962-71, inclusive

%":/ .7^7 *

Yield

to

''

7V*

Prices

Due

l77 Prices

'

Due

Tv

Yields

to Yield

Due

-

or

Price

1957

2.25%

1961

1958

2.50

1962

3.00

1966-67

3.20

1959

2.75

1963

3.05

11968-69

3.25

2.90

1964

3.10

1970-71

1960
.•'*

<

;

1965

3.00%
1

3.15%

100

(price)

i
.

'

*

.

The above Bonds

•

-

are

''

(Accrued interest to be added)

offered, subject to prior sale before

if issued and received by us,

after

or

appearance

of this advertisement, for delivery when,

aa

and

and subject to the approval of legality by Messrs. Wood, King & Dawson, Attorneys, New York

City. Interim Bonds of the denomination of $1,000 will be delivered pending the preparation of definitive Coupon Bonds.
i.

The First Boston

f

'

.■>

Bankers Trust

The First National City Bank of New York

Smith, Barney & Co.

■-*

1

:

•

V

Guaranty Trust Company of New York

Company

Harriman Ripley & Co.

Corporation

Halsey, Stuart & Co. Inc.

..

.

C. J. Devine & Co.

7

Incorporated
i

I]

Continental Illinois National Bank
and Trust Company

Kidder, Peabody & Co.

of Chicago

Mercantile Trust Company

~ "

'7.77

'•

775'v77V'. 777

Dean Witter & Co.
77

'

L. F. Rothschild & Co.
'7-

Lee Higginson

7;-7

•>'/.

Corporation

.v7'7 V7' >7

Roosevelt & Cross

*-"■

4f:i:

'■

Estabrook & Co.
■

7~"V

■

of Buffalo

Robert Winthrop & Co.

R. H. Moulton & Company

Rand & Co.

Thomas & Company
September 13, 1956.




'•

k

•

.7;*

7'".-'

„

7'v.

Incorporated

C. F. Childs and Company
Incorporated

.7.;7l7'7,'

G. C. Haas & Co.

Seasongood & Mayer

W. E. Hutton & Co.
1 *,/'

,i

Braun, Bosworth & Co.
Incorporated

First Southwest Company

A. G. Edwards & Sons

Coffin & Burr

v

Andrews & Wells, Inc.

7: 77;: 7"*'7"-7''

Incorporated

F. S. Smithers & Co.

-

Manufacturers and Traders Trust Company

Incorporated

Geo. B. Gibbons & Company

777.7777

Dominick & Dominick
'

Incorporated

Shearson, Hammill & Co.

7:7/7.7

W. H. Morton & Co.

'

First of Michigan Corporation

.,"7-r; 77.

Hayden, Stone & Co.

Shields & Company

Ira Haupt & Co.

~

*

Kean, Taylor & Co.

7

Ladenburg, Thalmann & Co.

^

Oregon

'

'

White, Weld & Co.

/

The First National Bank of Portland

St. Louis

Clark, Dodge & Co.

Phelps, Fenn & Co.

'

discussing

the future for flat glass the mat¬

operation

New Issue

:li;

7

Now, in the aggregate all these

and

1954

increase possible.

an

1947

and

glass and flat glass
It is obvious that facil¬

ities had to

This

1947

increase in

50%

flat

products.

.

Perhaps this is hard for some
of you people to believe. If you
couldn't get glass, your natural

As I said before, forecasting is
difficult as well as a hazardous

a

such

con¬

States De¬
Commerce. This re¬

between

was

sales

the 11954

Manufacturers

tnere

constantly expanding our produc¬
tion facilities to give you more
and more plate and window glass
as' W ell as supplies of processed

of

report

of

by the United

veals that

products and
We are

new

advance

ducted

for old products.

new uses

ure

a

extensive

are

the

are

y

■■■

■

The National City Bank
...

of Cleveland

Shelby Cullom Davis & Co.

Byrd Brothers

on

page

33

8

(1076)

The Commercial and Financial Chronicle

.

Business

Thursday, September 13,1956

...

Men's Assurance

Company of America — Report —
Co., Inc., 44 Wall Street, New York 5, N. Y. Also
available is a report on Western Casualty & Surety Company
Blair

and on Genung's Incorporated.

4

\ ).V'

f

i.J

coming

>

events

California

'

:

&

Pacific
Utilities Company—Analysis—First
Cali¬
Company, Incorporated, 300 Montgomery Street, San
Francisco 20, Calif.

In

fornia

& Li

S

:

>

Canada

Packers Limited—Analysis—R. A. Daly & Company,
Limited, 44 King Street, West, Toronto, Ont., Canada.

It ii understood that the firm* mentioned will be pleated

interested parties the following hteraturei

to send

(No. 21)—Comments

on the U. S. Navy's billion
propulsion program including a tabulation
showing the companies now working on the Atomic Air¬
craft Propulsion
program.
Also available Atomic Fund's

Columbia Gas System

atomic

annual report

illustrating atomic industry by
Development Mutual Fund,

means

photos—Atomic

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

Thirtieth

R.

C,

N.

y.-

v.

Wall

•

r

field

60,

September issue-of "The-Exchange"
of the New York Stock Exchange,

market performance over
National
Quotation Bureau, Inc., 46
York 4, N. Y.

a

■

Corpo:

J

•

Oil &

Gas

Corp.

—

Memorandum

is

report

a

-

Mich.)

A

club.

■

Sept., 20, 1956 (New York City)
Cashiers'"

Division,

of

Exchange

Stock

golf

Keith Reed & Co.,

Association
Firms, fall

tournament at the White
Golf & Country Club>y
'r
|[

Beeches

~

Haworth, N. J.

Sept. 21-23, 1956 (New York City)

Security Traders Association of

Miller Manufacturing Co.

on

(Detroit,

.

•>.- y-

—

1956

t

Gamble Robinson Co.—Report—De Witt Conklin Or¬
ganization, 100 Broadway, New York 5, N. Y. Also available

New York Week End

Pigeon Hole Parking of Texas Inc.—Memorandum—Stacy, Bell,

i

1

Company, Bank of the Southwest Building, Hous¬
2, Texas.

ton

discussion of Amerada; near-term oil
outlook; oil production of 62 companies; interesting pro¬
ducers, etc.—special trail subscription $10 for four months—
Dept. CF-1, John S. Herold, Inc., 250 Park Avenue, New
company management;

at

Manthos &

Petroleum Outlook—September issue contains
analysis of oil

17, N.

Wagner Electric

18,

Sept. 20, 1956 (Des Moines, Iowa)
Jlowa Investment Banker^ Association annual field day at' the
De^ Moines Golf and Country

Pacific

to

as

and

an¬

outing
golf pafty at Orchard Lake
County Club.
,■
\•

"

Fidelity Union Life Building, Dallas 1, Texas.

>

13-year period —
Front Street, New
..

'/

Association

and

Bfayer. Street, New. York 4,; N. Y".> A|so'^available alte

McRae

.

> '

Bankers

Bond Club of Detroit fall
"

Inc.—Analysis—Unlisted Trading Depart¬
ment, Ira Haupt & Co.,rill Broadway, New York 6, N. Y.

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

yield and

Sept.

Corp.—Memorandum—Hemphill, Noyes &

McGregor-Doniger,

Over-the-Counter Index—Folder

Quotation Bureau Averages, both

Chocolate

dinner Sept.

the

(pre¬
13 at

nual meeting at the Homestead.

Manufacturing Company -4 Analysis —Shillinglaw,.
Bolger & Co., 120 South La Salle Street, Chicago 3, 111.

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

used in the National

ment

60

Street, New York 5, N. Y.

analyses of Fram Corporation
ration.
> 44*4^

Yamaichi Securities

—

Co.,

&

by

at

Club

Sept. 15, 1956 (Hot Springs, Va.)
Southeastern Group of Invest¬

Jacobsen

,

Current information

Weinberg

Co., 15 Broad Street, New York 5, N. Y.>

>>—Monthly publication
subscription price $1 per year—The Exchange, 11 Wall Street,
New York 5, N. Y.
—

Co.—Circular—S.

Insurance

a

day

Country

the University Club of Chicago).

>

Imperial Chemical Industries Ltd.—Review—EL* Hentz & Co.,

,...

Japanese Stocks

Co., 120

.

Capital Gains Situations-r-Bulietin^Edward A.-PurcfcB &/Co.,
>50 Broadway, New York 4, N. Y. v
J
Electronics—D i scussi on in

Fire

Ilershey

Company—Alfred L. Vanden Broeck & Co., 55 Liberty Street,
New York 5,

McDonnell &

—

Donnelley & Sobis, Company—Analysis—Winslow, Cohu
Stetson, 26 Broadway, New York 4, N. Y.

Eagle

Barge Line Company, and Mississippi Valley Barge Line

York

annual

Medinah

R.

&

of color

Dept.

Memorandum

—

Broadway, New York 5, N. Y.

Barge Industry—Analysis with particular reference to Ameri¬
can

20th

Co.—Memorandum—Goodbody & Co., 115 Broad¬
New York 6, N. Y.

ceded

Atomic Letter

1033

Field

Sept. 14, 1956 (Chicago, 111.)
Municipal Bond Club of Chicago

Cities Service
way,

dollar

Investment

Pioneer

Natural

Gas

Co.

Memorandum

Pure

Beach, L. I.

—

Rockford Securities Dealers As¬
sociation seventh annual

"FlingDing" at the Forest Hills Coun¬

Oil—Analysis—Seligman, Lubetkin & Co., 30 Pine Street,
5, N. Y.
...
.
.
.

New York

■

.

Stag Party
Westhampton

Deck,

Sept. 27, 1956 (Rockford, III.)

Walker, Austin &
Waggener, Republic National Bank Building, Dallas 1, Texas.
—

Dune

try Club.

.

f

Pocket Guide for Today's Investor—Pamphlet
containing lists
of
selected i securities
for
income, growth and trading—
Harris, Upham & Co., 14 Wall Street, New York 5, N. Y.
Public Utility Common Stocks — Comparative
figures
Saxton & Co., Inc., 70 Pine
Street,\New York

—

A.

M

G. A.

5, N. Y,»'

Textile

Enka,

Smith

O.

J4 Stanley

Street, New York 5, N. Y.

■

.

*

& Stern, 30

Wall

Viscose,

Cannon

Mills,

Dan

River

Mills,

•

.

r

Company—Analysis—Harris Upham

New

York

5,

Chicago

Ferry, Inc.—6-page description—General Invest-,
ing Corporation, 80 Wall Street, New York 5, N. Y..
Motor

day at Medinah Country Club,

Co., 120

^Medinah, 111.

Company—Analysis—Penington, Colket & Com¬

Oct. 4-6, 1956

70 Pine Street, New York 5, N. Y.

pany,

Broadway,

::

Firms

Y. Also available are reports
Schick, Inc., Getty Oil Co., Republic Natural Gas Co.,
American Telephone & Telegraph: and Greyhound
Corp,

••

Company—Report—Laird, Bissell & Meeds,' 120
Broadway, New York 5, N. Y..

Beneficial
&

Standard

Life

Insurance

Co.

A.

Life

*

FLORIDA

The

We again suggest you and
your

-

.

clients

v

-

can

•

profit in:

Electronic Stocks
recently stated that
from

"half

will be devoted

now

may

double

prominent spokesman
electronics business six years

the
to

industry

products that do

not

now

■

'

-Aerovox Corp.

i'- •"
.

•

~

.

-

•

•

;

*

Continued

.

21,; 4:19^
on

page

Beach, Fla.)
Is
Investment Bankers Association
of
*

America

"at- the

annual

convention

Hollywood Beach HoteL

April 21-23, 1957 (Dallas; Tex.)
^Texas
Group" of
Investment

'

"Bankers

p.m..

164

■

(Hollywood

.

y

Association

meeting
Hotel.

at
'

the

»■

annual

Statler

Hilton

'

-

York

(Hot. Springs, Va.)
^•National Security Traders Asso¬

♦

^

n

•

Incomplete?

ciation Annual Convention.

>

'

-

;>:/3"FOR

SALE"'

DEPENDABLE-MARKETS

Heintz
'i./

-

--

-

a.

Annual

P. R. Mallory
*

Sprague Electric

Troster, Singer & Co.




V

.

Nov.l25i.30, 1956

A Number of Beautiful

...

Perkin-Elmer
•

HAnover 2-2400

*

v

of Stock Exchange
Firms'meeting of Board of Governors.
'
[i

Nov. 3-6, 1957

Litton Industries

74 Trinity Place

/

Are Your Records

Jack &

.....

Members New

„

(New York City)

Association
--

.

•

^

Hycon Mfg.
•

' *

(falmi Spring#,

J;

Nov. 14, 1956

-

^

Electronic Associates

.

ASSOCIATION OF NEW YORK, INC.

*-

24-27, 1956
Calif.)

National Security Traders .Asso¬
ciation Annual Convention at
the El Mirador Hotel.

week-end. Stag Party of the Security Traders Association
of New York will be -held at Dune Deck, Westhampton Beach,
Long Island;, Sept. 21, 22 and 23.
Dune Deck "is perhaps "the newest hotel on Long Island."; Di¬
rectly on the beach it has .very elaborate accommodations for 104
people. Its bar and cocktail' lounge is all you could ask, it is £ast
becoming famous for its. excetlfent food. "It" has "tennis courts.
Arrangements will be made for golf at Southampton, possibly the
Westhampton Country Club, greens fees $5. It's an hour's drive
to Montauk for .deeprsea. fishermen; Plenty of local surf casting,
e^c., of course. -For those in the mood plenty of night life adjacent,
Canoe Place Inn, Herb McCarthy's, etc. The Association Will have

-

Dynamics Corp. of America
i*

;f

,

The

•

Collins Radio

*

.

(Miami, Fla.)

•;

Airborne Instr. Lab.
•

,

all of the Dune Deck to-ourselves, no outsiders. .'";
Train will leave Penn Station Friday," Sept.

exist."

Along With Many Others, We Trade and Position:

%

-

-

Evidence everywhere indicates that this
its .volume in less than a
decade.
A

ASSOCIATION

Oct.

THE SECURITY TRADERS
r

.

SECURITY DEALERS

Florida

Security' Dealers Association will hold their
annual meeting Oct Ilrl2rl3 at the Key Biswyne Hotel, Mi am i.

Analysis — Hill Richards & Co., -621 South
Spring Street,' Los Angeles 14, Calif.

.

?

Security Dealers Asso¬
ciation annual meeting at Key
Biscayne Hotel.
'>•

%

—

DEALERS

j. j

Florida

Boeing Airplane Company—Analysis—Dejan Witter &
Co., 45
Montgomery Street, San Francisco 6, Calif.

Bullock's Inc.

K-

,

Oct. 11-13, 1956

Insurance-.Company—Study—George

Searight, 115 Broadway, New York 6; N. Y.

;> :y.;

delphia luncheon meeting at the
Union League.
>
. (
f

Notes

—

_

Standard

ernors.

Municipal Bond Club iof Phila¬

Analysis —, Morgan
;Co., 634 South Spring Street, Los Angeles 14, Calif; -

Beneficial

of Stock Exchange
meeting of Board of Gov-

Oct. 8, 1956 (Philadelphia, Pa.)

Bankers Trust
/

y
(Detroit, Mich.)

Association

—•—-

N.

on

'

f<

Analysts Society of
golf outing and field

.

White
Air Reduction

(Chicago, 111.)-

'Investment

.

TMT Trailer

Rayon and J. P. Stevens—Thomson & McKinnon,
^
!

Street, New York 5, N. Y.

J.

'Oct. 4, 1956
.

American

sociation 10th annual outing at
Colonia Country Club, Colonia,

»uN.

,

Corpi-Memorandum— Herzfeld

Warner

Broad

|

Corp.—Memorandum—Moore, Leonard & Lynch,
■%
*, ••

Union Trust Building,? Pittsburgh 19, Pa.

Stocks—Survey with particular reference to American

Industrial
11

Sept. 27, 1956 (New York City)
Corporate Transfer Agents' As-

Schick, Inc.—Report—Bache & Co., 36 Wall Street, New York
5, N. Y.

Bound

Sets of "CHRONICLES"

of

Various Dates From 10 to 50 Years
•

Available in New York

City—Write

or

Security Dealers Association
•

Phone
New York 6, N. Y.

Teletypes NY

1-376-377-378

REctor

2-9570

-

-Edwin

L.

Beck

c/o Chronicle, 25 Park PL N. Y. 7

DEMPSEY-TEGELER & CO.

Volume 184

Number 5568

..

.

The Commercial and Financial Chronicle

(1077)

9

,y
S'y

credit squeeze and of the restric-

of British

tion should not, however, be over-

wage inflation are now bound to

Sterling
In View of Declining Reseives4?rm °f h ~her:t-ation-In -ddl sary to tax the Tower income should be made to realize that
>

tions

on

installment credit trans-

rated.

In order to reduce

domestic feel less, certain about

their pros-

actions, and possibly- also in the
higher taxation. In "addition, the Government may have

consumption

to

stimulate wages demands. ' v > - tween their wage demands and
The only possible way in which the uncertainty of their future

form of

cal

By PAUL EINZIG

port

restrictions,

and

to

sary

.

groups

its dislike for physicontrols.
There may be. im-

overcome

tax

would

the

and

be

lower

income

should

would

this

further

there

licences may be reintroduced. The
Trade Union Council declared it-

the situation can be dealt with is
through weakening the bargaining powers of the trade unions by

self

means

flationary measures—including physical controls—and take
long overdue step of placing the blame for inflation "fairly
and squarely on the shoulders of organized labor."
~\

Pressure.

dismisses without

Einzig

LONDON, Eng.
the

of

gold and
dollar reserves by £129 million
to £2,276 million during August
Area

more

was

less

tin

trade

verse

vl

ad¬

'

•*

sterling

was

under adverse

v

pressure

largely

\

as

a

of_ the
Suez, crisis

which induced

rate
*

-

of
-

hth^inrrea^se

offset

foreign

man*

holders

of

ad

is

sterlingto

'

balances.

defend

level.

Had

it

influence

beeh

not

the

decline

Would have been
erate

of

relatively mod¬
spite of seasonal buying

in

dollars.

ments

The

has

.

balance

improved

of

to

the

inflationary
Such

ther

sterling

at

its

present

This would necessitate fur-

disinflationary

the form of

Weeks, 40 Wall

stree"C"New"YOTk'at*'members
0f the New YorkStock Exchange,
on

Oct

1

will admit George Vi-

....

..

rt

me"!iU15"?,, h«herto . carefuUy
blame forin-

.

avoided putbng the

»

matter of regret that the Govern-, flation and for the adverse- effect

ment; did

not

adopt

of disinflation

certain

fairly and

Heighway will make his headquarters:inthe Chicago office,
on Sept. 30 Isaac Cv Elston Jri
,

„

D.
Francis and Henry e!
squarely on the shoulders of or- Greene will retire from limited
Sanized labor. ,If public opinion partnership.. On Oct. 1, Paul B*
°nsltaa*101J by the can be made to realize that wage skinner, Percy W. Brown and
crisis could -not be foreseen, demunds
must
entciil
further
a

?f phy?ical controls

Suez

measures

Dean

ear-

Dsvis, geriersl and limited

tlon"

an

measures

in

accentuation of the

'

■

.

Umited Justifica- be subject to. increasing c^ticism
'
"
.V
~
evTe,n. a"™s ™°rkne„rs
Credit Squeeze
the nUmb6r
^reo« B«ueeze '
of " 1S trU6' "P l° n°Wthe increase
those affected by
.

Additional
"•""J"10031

14

attitude of the trade unions will general

controls

cer^n

a

-

partner,

limited partner,

will
*>

r,

become
.

Charles S. Leahy
Charles S; teahy- passed

seems probable that for the

se

with the deterioration of the

COpe

economic

the

situation

annual

following

budget in April.

extent to which taxation
could

higher

wages.

should

But

the

inflation continue the proportions might easily change. And

wages

on

The

measures

even

help in the existing situa-

the

those who have not suffered

adverse

consequences

of the

ment he

was

an

offer to sell

The

measures.

a

member of the

old New York Curb

which he
and

a

was

a

Exchange, of

former Governor

Vice-President.

nor a

solicitation of

an

offer to buy any of these Shares.

offer is made only by the Prospectus.

\

•

i

could not safe¬

however, against
resulting from the psy¬
chological
effect
of
the
Suez

what

of

she

previous

gained

during

months.

seven

is

at

now

This

the

The; gold

about the

level at which it stood
ago.

1,145,011 Shares

Owing to this factor Britain
a single month
nearly half

reserve

12

North American Aviation, Inc.

same

months

that, from this
point of view, the effects of all
the

wiped

out.

($1 Par Value)

At the time

of
writing the outcome of the
Cairo discussions is still uncertain,

but official circles in London
far from optimistic.
will

that

be

Moreover,

•be

Rights, evidenced by subscription warrants, to subscribe for these shares have been issued
by the Company to the holders of its Capital Stock, which rights will expire at 3:30 P.M.,
Saving Time on September 24,1956, as more fully set forth in the Prospectus.

Eastern Daylight

are

seems

un¬

settlement

which would

re¬

adverse

psychological
sterling.

factor pressing on
•

It

early

an

reached

the

move

T-

Capital Stock

have

measures

Nor is the out¬

look very promising.

likely

:

means

disinflationary

been

affected

Subscription Price $38

a

Share

sterling is liable to
unfavorably by the

decision of the Trade Union Coun¬
cil

to

abandon

restraint.

wages

[It is true, its support for

The several Underwriters may offer shares of

wages

Capital Stock at prices not less than the Sub¬

scription Price set forth above (less, in the case of sales to dealers, the concession allowed to
dealers) and not more than either the last sale or current offering price on the New York Stock

:restraint has failed to prevent the
trade unions from
putting forward

Exchange, whichever is greater, plus an amount equal to the applicable New York Stock
Exchange Commission.

frequent and excessive wages de-

-

[mands

in

flagrant

exhortations
Council.

the

fact

has

now

in

wages

favor

inflation

of

is

that

the

unrestricted

liable

to

en-

the
Unions
further
'their excessive demands. The
sult

will

ain

or

be

Copies of the Prospectus may be obtained from only such of the
undersigned as may legally offer these Shares in compliance with the securities! laws of the respective States.

declared

•courage

crease

.

of

by the Trade Union

But

itself

•Council
•itself

disregard

either

a

sharp

,

in
re¬

in¬

in costs and prices in Brit¬
a series of
strikes, or both.

MORGAN STANLEY & CO.

[This would inevitably accentuate
•

pressure

on

sterling

through its

KUHN, LOEB & CO.

THE FIRST BOSTON CORPORATION

[effect
In

on the balance of payments.
the circumstances a further

BL YTH & CO., INC.

decline of the gold reserve during
the Autumn must be anticipated.

This decline will be offset to

ceeds of the Trinidad Oil transac¬

tion,

but

in

face

of

.extent of the adverse
item

will

be

No

Sterling*

of

KIDDER, PEABODY & CO.

.

SMITH, BARNEY & CO.

MERRILL LYNCH, PIERCE,

this

STONE & WEBSTER SECURITIES CORPORATION

DREXEL & CO.

Devaluation
unfavor¬
a

sterling

WHITE, WELD & CO.

be

without hesitation. 5 In
existing circumstances a devalua¬
tion would bring no benefit at alL




HORNBLOWER & WEEKS

PAINE, WEBBER,

WERTHEIM & CO.

possible
may

September 11, 1956.

♦dismissed
ri

v:;

DEAN WITTER & CO.

reverse it.

;
Notwithstanding the
able outlook, rumors of

[devaluation

LEHMAN BROTHERS

:

possible

pressure

unable to arrest the

[decline let alone
i>

the

HARRIMAN RIPLEY & CO.
Incorporated

pro¬

GLORE, FORGAN & CO.

EASTMAN DILLON, UNION SECURITIES & CO.

GOLDMAN, SACHS & CO.

some

"degree by the receipts of the

A

*

I

away

active in the invest¬

ment business as

sterling,

lost in

;

year

pressure

crisis.

1

of unemployment and short-time
Sept. 7 at the age of 69 following
running- there will working is a mere fraction of the
a
long illness. Prior, to his retire¬
have to be.aii autumn, budget to number of those-benefitting by

■ •

This announcement is neither

dis¬

'"

.

per¬
year

Government's

measures

guard

Hornblower &

.

pay¬

quite

ceptibly during the current
thanks

...

a

•

J"3)13'®hfeh nmv7rie
imported'
^^jroyj^e addifac^ excuse for.vrageidrnnands;
Mr. Macmillan
determined to

withdraw

Einzig

this

To Admit Partners

;

n

rT the^do- stances. in which such

mestic consumption resulting from
the additional wages inflation. A

•

for

bad

a

directly connected with the.; In the hope of appeasing the trade cira; Edward V. Laffah and Oliver
wages and working conditions of unions Members of the Govern- jj
HeighWay to partnership Mr

result

Dr. Paul

yielding to
It is

^ influence policies ade<Wa*ely resorting to for the ne?
U lt>ns Sl!?"ld cessity for Prepared
to
that course.

allowed

balance

the' exchange

—

be-

<>*,*%%<.

■j

their

be unpopular. It is a great pity
that public opinion has not been

be

during ) the
autumn will be
due to strikes,
there would be a decline in the
volume ^ of goods
available for

connection

Horablower & Weeks

the

of

This would entail
unemployment which is bound to

hot

lowering

x-

accentuation

an

direct

a

credit squeeze.

it would appear to be

accordance
ince

-v-:'

of

1

is

employment,

that if and when the
Government should resort to them

wit:

or

■

■

emphatically in favor of these

measures, so

export, so that it would be futile
to attempt to stimulate exports by

'

.

rumor

The decline To the extent to which1 the

—

Sterling

hesitation

What matters is that they

pects.

neces-

of possible
sterling devaluation, notwithstanding unfavorable gold reserve
outlook due to psychological effect of Suez crisis and Trade
Union Council's decision to abandon wage restraint policy.
Believes the Government may have to impose additional disin¬

Dr.

building

it

CURTIS
JA

The Comrriercial and Financial -Chronicle
10

s.;

(1078)

the
attribute of utmost importance. retaining or paying out^r-eallzed filiated
with
-management
: v
Furthermore, common stocks pro¬ capital gains. iMs tne usual prac- company.
vide the Only convenient "iheans tice of nvtrtUSl funds to give the
" It is self-evident that a good
available to the investor of par¬ ^shareholder an option of receiving board can be of inestimable help.

Investment

r

.

•

By JOSEPH H.

HUMPHREY*
Ltd.

ticipating in the long-term ^Owth cash or an equivalent in shares for in the portfolio management of
of our economy. - Of course, the his capital gain dividend. Under, an investment company. On our
rise in-the market over the past a newly amended section' of' the boards,"for example, are men who
several years has done nothing to code, effective -next year, the in-- are directors in leading American
Canadian
companies
who
diminish the popularity of com¬ vestment company pays on behalf and
mon stocks.
To balance the pic¬ of shareholders a 25% tax on real- from their business and financial

Vice-President, Calvin Bullock,

Vice-President explains the procedure

Calvin Bullock

used in

of programs guiding
the mechanics of portfolio administration, including sOch
factors as: statutory regulations, board of directors, commit¬
tees, consultants, indispensable £2*1 ytls, economists, and
purchases and sales. Mrt Humphrey avers: (1) investment
company is the j-ingle most importalit institutional bolder of
common stocks, amounting to one-fourth of total institutional
holdings; (2) tendency is to invest for long-term growth;
(3) there is wide division of opinion as to advisability of
maintaining any reserves; (4) common stocks provide
one
of the most convenient and effective means of preserving the
establishment and implementation

the

purchasing

should note a furtherH

ture, t One

cktfitklf7g0iBki|ttqjt:'^ pkid|<^t»l;3ex5)erience^ render- good counsel,

ized

One man is a renowned expert on
the stock market; another is an
authority iri the field of money

price with the: balance being added to
fluctuation. Seasoned investment: capital surplus and to the respeccompany, management recognizes* tive cost."Of the stock held' by
If
an
individual
thkt stock prices are not aLtvays'. shareholders.

attribute of common stocks;

and banking having been the first

•

street and will attempt: shareholder's; tax; rate'is" less than head of the Bank of Canada^ anto guard against anticipated price; 25% fie receives a compensating other. is versed. in knowledge of
declines, and may commit a part" credit. The shareholder likewise "military affairs, having been Secof its assets to reserves in the re'ceives the dividend credit with rotary of the Army and now assoform of fixed income securities. respect to domestic dividends, or ciated with a larger producer of,
a

one-way

it

However,

is

apparent

from,

credit

a

what I have said that investment

of one's savings," and the only convenient
participate in the economy's long-term growth.

power

to

means

Thursday,1 September 13,1956

for

withheld

taxes

defense equipment. With the mili-t

on

tary budget taking almost $40 bil-

foreign dividends. -In other words,
he is treated the same as if he

lion a year, this is a factor that'
portfolio management is
primarily geared toward common held the -stocks directly. .A share- roust. seriously be taken into acholder cannot receive a credit for count
by investment managers,
companies, the size of the in¬ stock investment. This is its fun¬
company

present, as a matter ance
income from tax-exempt securi- -puJ these examples suffice to ildamental characteristic.
few facts and fig¬ vestment company industry ap¬
ties which may be held by the lustrate the point,
.
pears relatively small. Its role in
ures regarding the nature and size
Laws Affecting Investment
fund, and for this reason taxThe directors meet monthly to
of the investment industry. Total the equity "markets is, however,
Companies
exempts are rarely purchased by review security transactions, and
more important than indicated by
assets
of
in1
A brief1 word as to the legal investment companies.
It is pos-..to discuss and formulate major
this comparison.
Based on sam¬
vestment com¬
For example,
ples,! should judge that around aspects of the industry insofar as sible that legislation may be en- policy directives.
panies amount
85% or $8.5 billion of investment they affect portfolio management acted in the near future to correct over the past months the chances
to nearly $10
of hostilities arising in the Midcompany
assets are invested in may be of some interest. The in¬ this discrimination.
billion, of
It is apparent from this brief die East have been appraised in
common
stocks.
A recent study dustry operates under the super¬
which
$8.6
I

to

want

of perspective, a

.

,

resented

indicates

by

cpen-end
funds, and the
balance by
close d-e n d

funds.

As you

know,

an

open-end
fund, more

H.

commonly'
known

as

Stock Exchange vision of the Securities and Ex¬ recital that tax considerations, as the light of developments, and
equity securities held by change Commission through the is often the case in individual evaluated as to its effect upon our
institutions amounted to $40 bil¬ Investment Company Act of 1940. investments, do not dominate the portfolios, specifically in relation
lion at the end of 1955, of which In general, this Act seeks to re¬ investment decisions reached by a *° 01} company shares.
At each
investment
companies
to fund.
•
meeting there is a thorough dis$35 billion may be roughly esti¬ strict
Before setting about to describe cussion of the economic outlook,
mated as consisting of common their function as investment media
stocks. With respect to the com¬ by setting up certain restrictions how the job in portfolio manage- abd after reaching a decision, the
is handled by our firm, I directors formulate a major policy
mon equity market, therefore, the designed to prevent utilization of ment
investment company is a very im¬ investment company assets as a should like to dwell-briefly on directive such as calling for an
means
of securing or exercising the nature of the funds for which increase in cash reserves or the
portant factor, probably account¬
ing for about a quarter of total control over other companies. For this management is designed. Our adoption
of a more defensive
by the New York

is rep¬

billion

Humphrey, Jr.

of

holdings

institutional

a

Furthermore,

common

single
time to time offers its shares for type of institutional holder is as
rale and contracts to redeem any important a holder of common
mutual

fund,

regularly or

from

shares offered to it at prices based
en market value of its assets.
A
closed-end

its

namC,

fund,

indicated by

as

neither

undertakes to

stocks.

this

♦An
the

address

f.ponsored
l.ducation

by Mr. Humphrey

Annual

Sixth

•

Forum

by
the Joint
representing

on

example, investment in the secu¬
rities of any one issuer is limited
to 10% of the outstanding secu¬
rities of such an issuers Also, to

firm manages

six investment companies witn aggregate assets approaching half a billion dollars,
These

investment

the

as

qualify

com¬

is restricted to not over 5%

postwar period.
Anti-Inflation Hedge

The

Certain

for this preference

reasons

revenue

the

vehicle

high
grade income fund, and^e other
designed primarily for appreciaa balanced fund, a part of

Committee on
the ' American

Securities Business, New York City, Aug.

an

ing

of

and

effective

preserving the purchas¬

power

of one's savings; Con¬

sidered against

the background of

inflation that the world has wit¬
nessed over many years,

£3, 1956.:

invest¬

whose assets

-

this is an

realized

net

capital

j

.j?J

_

ijfLjL

gains,

fund listed

In addition,
have
managed a Canadian

1932

smce

no

closed-end

fund which

treatment at

?

income

of invest¬

a

primarily de-

now

is

sale

for

Signed

be distributed

must

but the company has

4

® Sffii+S

frapsactions and proposed buying
parenthetically note that there is

jn(justry with respect to the advjsakiiity I of maintaining any re¬

abroad. As you see, our job covers

ment

senior

more

the New York Stock

on

Exchange.

is

least 90%

sSLe-

«n

American6

payable by the investment
company.
To
qualify for such

tax

]?e directors, a

Iwl
se U+P
tlTl °f i*

matter of policy

a

ment in Canada; and a

considers the investment company

its

as

are

f

a

-

of

are

convenient

most
means

before

as;

as

tionf

of the

fairly obvious. as a conduit, and insofar as it
Common stocks provide one of the distributes all of its income and

ment

Finance

stock

common

designed

one

Posl^lon *** Pur portfolios.
Jo provide a closer and more
? ?
aPPllcaJon of policy as

stock

two

the internal must consist of fixed-income sepeculiar to. purities' and a fund designed for
investBasically, the code participation of

phases

code also

by the investment companies for the industry.

include;

funds

funds:

a

as

assets of the investment company.

<'

nil..11.-.■

.

t

diversified type of
panies. The industry may indeed investment company, investment
in the securities of any one issuer
be said to have come of age in
stocks

make any regular offer or to re¬
deem its shares. Most of the in¬

dustry's growth has occurred Over
the last decade. To use the jargon
of the Street, one may classify it
as a growth industry.
In comparison with the $92 bil¬
lion of assets held by life insur-

no

and

Canada

in

broad investment interest.
Portfolio

the option of

.

,

investment

an

well

our

selection

as

the

are

cogent

sides, it is still
firm that timing

investment

an

that

•

.

p

of

both

on

poiiCy 0f
of

Different

Management

reasons

as

Management Is

Although there

serves

is

a

function

and

company,

interest

of

the

share-

holder is best served by perform*
ing both functions.
;
A/ .A

portfolio is not merely
similar to managing tie portfolio
of an individual on a larger scale.
company

This

announcement

is not

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

an

The

First, there must be an intelligent
diversification of risk; this is one
of the

$15,000,000

principal reasons for being
investment company. Then

of the

the proper
lected

order

in

vestment

Gulf States Utilities
First Mortgage

securities must be sein-

objectives of each fund

a§

that

say

establishment

to

do

serves

anced

not

fund

modified

is

who

which

desires

of

apply to

formula

fund

remarks

my

cash

operates

plan.

-

re-

bal-

our

on

a

Such

a

designed for the investor

income

relative

and

stability

capital

such

of
as

'

—this

Company

In

is

the

joo of management,

discharging this function, man-

take

must

agement

look;

long

a

because of the large sums involved

Bonds, 434% Series due 1986

a

fund

September 1, 1956

vidual.

Due September 1,1986

in

be

cannot

the market

Dated

the

meet

to

Modified Formula Plan

should

I

first

I

When

as

of

out

and

nimbly

as

indi-

an

into

came

the business in the thirties, trad-

ing

was

funds.

among

Price 100.848% and accrued interest

cause

more

of size but because

investment
be

prevalent
Now, not only be-

much

experience

secured,

invest for

the

widows

basic

and

retired

purpose

of

people.

The

the ; formula

plan is to reduce risk by cutting
back

common

stock

holdings

as

the market rises and thus becomes

vulnerable to price declines,
The formula is not inflexible and

more

the pivot point—i.e., where com¬
mon stock and fixed-income secu-

rities are in equal proportions—is
changed for any structural change
to in our economy. It was changed

better

a

seems

tendency

to

is

twice

in

the

inflationary

long-term growth.

post-war period
the first

reasons:

for
was

when the character of the postwar

Composition
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.

of

Policy

and

characteristics

In order that portfolio managenot

ment

become

av

rather

hap-

hazard function, it must be made

HALSEY, STUART & CO. INC.

cohesive

g!

defined

BEAR, STEARNS &, CO.

R. W. PRESSPRICH

& CO.

of basic

by following a clearly
policy. The formulation
policy for the guidance of

portfolio management is the funcR. S. DICKSON

& COMPANY

HIRSCH

& CO.

STROUD

A

^

COMPANY

tion

of the boards of

the

INCORPORATED

respective

COURTS & CO.

FAHNESTOCK

& CO.

FIRST OF

& CO.

H. HENTZ

MICHIGAN

& CO.

CORPORATION

STERN

-

ARTHUR M. KRENSKY

est to

the

& CO., INC.




•

-

...

;■ ;

....

,'

,,

^

•

<•

ate

and assist management in the

per-

of

,kasis. These lie primarily in the

^Vo/TT^lllSd "a!

on

behalf

a

composed

Company

mutual

of

com-

of the

It may be of inter-

Investment

of

manifest.
and again at the time of Korea,
The pivot point is not changed
because the market is high or because of "new eras."
'
To return to the thread of our
discussion, I have described how
the directors define major policy

director-

investment

1940 the majority of the
September 11, 1956.

inflationary

point out that according to

panies who act

BROTHERS &, CO.

its

became

formance of its job. For further
assistance in discharging its managerial duties, recourse is had to
outside experts on a consulting

shareholders.

GOODBODY

directors of

INCORPORATED

AUCHINCLOSS, PARKER & REDPATH

with

economy

A- A;V-:V Directorate A, A : -A

fund

individuals

Act

must

not

be

af-

nature.
course

In
a

addition, there are of
host of other outside

(1079)
available

sources

to

such

us

as

the broad

banks, brokerage houses and trade

policy.

associations.-

as

4

,

it

W
and

the

n^lrrLJ

of.purchase

timing

sales of individual

and

nature; ;of: the- work
of -the on
invested- capital.
The latter
analyst rather than the following is "incidentally a
highly imporrather brief summary.♦ •■•tartt-figure* to follow
closely, dur-

denominator by our

common

inuUur£S and C0mpsries
they are responsible.

ing this period of heavy

,

The Work of the Analyst

f0r

securities.

In this he relies upon the work of
the research department which he

a highly inexact science, wblch he is .responsible , This inand and testinff.'surh
one should always be check- volves a wider area of knowledge
in{?

ou~

case7

own

statistics

and

tie

we

in

current

economic

our

to

-

than

cover

is

spnt
-

decrees" an<Lothers;<TrT addi-

tion

e

The

to
*

* - regular annual and

•'

'-—.J*1

^

heads.

Let

describe

me

how

department operates and the
pprlitrA

mhprphv

pnritipc

Tc

Our

mad

cpl#Winn

of

are

analysts
by

senior

aided

their

in

work

appropriate
clerical
and
stenographic assistance. We judge that
lt takes about 10 years

mojui

cp.

^research of
department cona
staff

sists

who

outline

of

1

J?—„

2m.

_

—

1.

jlS

management

securely

not

are

^
*
hot flashes of genius.

----quar-

AK+is{*^A/I

'

—.

l~v*»

4-1-%

——
They

'■

^

M

-are
2

«

.

pro

of s

*

the

our

nf

I se ect 0

completes

*

individual securities by the analyst. Contrary to-popular conception, the results - of investment

com-:

as

pany' reports, .■ legal' documents
such as >court decisions and con-

Let us take the petroleum Indus••

This

original documents such

commonly realized,

dis-#1^3^ a|,specific example;.

capital

-

Every effort is made to furnish the procedure of our operations
th&. analyst: with adequate tools. from the setting of a major policy
Our files contain a vast amount of by the directors to the work on

♦

-Tn

and

ability of the analyst
V-.»
*
/I
Summary

expansion.

Th<Vfir?t
theulanaly? +is
to understand thoroughly and to
Economic forecasting is unfor- f°"°w care:fuLly the industry for
forests

proportion to the experience

the

used

the^ttfotio admin£
thic nnli^v hv tunately

nf

tIStnr £ ^mn^mpnt

Spptinn
selection

is

it

projections of earnings covering the

Operations

:'Snwtmei5^rommhtoe^

economic

our

example,

analysts in arriving at their

..

nnpr

Research

a

of

course

For

11

to-develop

^m^uvuio.

±11

uuo

way any material deviation from
our estimates calls for
investigation and some soul searching as
to

our
previous conclusions.
In
this way also, one may follow the

progress of the economy in a logical *and orderly fashion.
In my

opinion,'-this is

-

the

of

one

most

-

;

~ '

.

~~

"

.

tl0n> prices, and growth.. Without
^casarU3Ubemg

maft

an engineer,

understand

the

«llu

killings

which

UD

a

he checking current

technical

Patterns of the industry and their

industries.

0us

tain

mation

example, the capital requirements
and competitive effects of the
Jfend toward Iiigher octane gaso}|ne- Pe must be able to weigh

from

such

OHS1S,

useful

trends

in

various

as

sources.

13

ucvci

Aimaiieu

assemble

never

all
to

a»

the
have

in arriving at investment decisions. Nor is mere assembling of

con-

facts sufficient. To be of value
they must be evaluated by corn-

reports

'These files

mcti

can

facts that he would like

engineers, brokers and other

financial

wuiiv

one

infor-

of

sources

«

in

vari-*

Our files also

secondary

economic significance such as, for

IllOIlUliy

particularly

are

petent

are

if

men

the

proper

invest-

supplemented by a library which
contains not only the standard fithe effects of competing forms of fnancial
services, but a large num-

ment decision is reached.
Such
fruitful uses to be derived from
conscientious and competent work
be considered a senior analyst.
economic forecast.
may not yield spectacular results
a
«
fuels the
such as[natural gas and coal, ber of government and trade pub- but it should produce a satisfacwork in some leavening of youth
Approved List Constructed
and
probabilities of competi-1lications both
domestic and for- tory investment result over' the
in our
organization, the members
Having satisfied ourselves, mo- flon fr°m atomic power. He must eign.
■longer term to the shareholder
T>f our staff consist primarily of
mentarily, as to the basic ;eco- -be cognizant of pertinent legal
and, I believe, perform a useful
men
of long years of experience
nomjc background, the next step and tax considerations peculiar to
■'
Field Trip Interviews
•
social function. !
and of mature
a

•*

to the point where he may

man

wlSv1!?

'

cnmn

—

.

.

,

~

.

_

.

-

judgment.

in the pr0cess of
selecting secu- Jbe industry.
Furthermore, the
is responsible for rities
ritiPQ
responsible
is +v.p nnnc+n infirm
the construction of an background against which all this
background against which all this
following and reporting on a spe- approved list based on recom- is considered is the world. The
cific industry or group of Indusmendations of the research de- action of a Middle .Eastern p.olititries. One specialist, for example,
partment. This list contains vari- cal figure may have fundamental

Each

n?htr%hte^ust another the railthe oils, iL)Vned.US,hI;„au"
other

roads; and another the light
goods. There is also a

detail.

division of work

possible

as

is

along

-

Such

related

lines.

responsible^the^ght c^m'5
responsiDie
lignt
tor

tne

high-grade,

as

bonds, convertible securities,

insofar

made

such

spe-

whose more I shall' diswork
in

^

needs

meduim-grade

cialist in charge of the economics
section

later

ousour
elasses o£ securities suitable
to

con-

sumer

cuss

*

senior

consum-

eFi ?°2 ? SrojiP deals with such

and

ferred stocks and

The

speculative
pre-

stocks

common

common stock portion is

set

percentage basis, taking
that portion of the portfolio in-

up

on

a

vested in commdn stocks at 100%;

A PfTfe^e
each

supplement

to

this

analysts

our

field

t

tries

interviewing

f

encase

for

thf

desk

in

industry, or on
profitability
an oil pipeline in British Columbia. Only with the background

cLnanies

of a thorough knowledge of the

corporate

r

caii„ for vicitinp w«ii

of

(Special to The Financial Chronicle)

and

#

p

^e oils, 12% to the utilities, etc.

lOTd^ ^ialn titfnlnrelves^eSl.?a<J*'^WSfry;

staff

Carey

has- been added to
Bieder

of

&

Company,

1330 Dixie Lane South.

g

V_
We have found these interviews With
.

one

.

w

*

;

.

Johnson, Lane, Space

(spcci&i to the financial chronidle)

m-

'

att

anta

ra

,

William

n

.

In connection with the

then allocated, to lndiyidua|I companies, the finan- »toJ1
group: say 15% to cial reports are

industry

PETERSBURG, Fla.—Rob¬

G.

the

thing, they enable us to form a
i
» much more intelligent opinion
re^
study' of garding management. The analyst •
an

ST.

ert

onn

nvPr

the analyst make .an to be extremely-helpful. For

intelbgent appraisal
dividual company. •

Joins Bieder & Co.

ex-

nnrnose

yea'/fo* """We. o«« sched:

tht
the

«an

?

-

-...

_

work

carefully analyzed.
Balance sheets are examined with

int0 the company and the problems it faces. The interview-is

group is further particular emphasis being -given

Lane

Space & Co

Inc

Cittzeris&Souther|iNatl6narBank
Buiiding

;

;

^

mmranv-'s" uothl Form

LieKtman, -Mong Co.
to the-Working capital position,- analyst witn the cpmpanys pou- - ■
^
^A_^. ^ ...
and the, plant■; construction- €x- cies and its future plans. Finally,
MENLO Pi\RK^Calif.-~Mbrton
industries which we'favor for in- penditures. This is not only im-; and not the least important, thfese E.
Lichtman and-' Clements R.
cultural
equpment depends upon, vestment. This approved'list doesportant from the viewpoint of^^'its /discussions with an-able^corporate MQng, Jr have-formed^^Lichtman,
the prosperity of the farmer, this
no|;, impose an - inflexible limit- to effect upon dividend
policy* and executive of economic • trends af- Mong & Co., with offices at ^1139
analyst -•
has^this industry* under our selections. Rather, it serves as future financing, but also as an fecting his company and industry Chestnut Street, to engage m a
his

i^f ^
ing
abreast of

broken down,by>percentages;as to
developments pi, individual
companies-within these
Since sales of agn-

agriculture.

jurisdiction rather than the
.analyst who. handles the machin¬
ery and equipment group.
,

.

The field allocated to each

,

is

broad

so

of

over-specialization.

lyst

who

also

handles

trucking,: .and
words, he

The

the

point

of

the

broadened

at

which

of

the

.

7

tries

In

other

The view-

analyst Ts

current

and

discussed,

;

General Economic Research
m,

.

.

.

A1

The first step in

making
and
state
-

process

for

to ascertain

is

we

„

the

selections

sale,

are

the

in

of

purchase
at what
economic

cycle.

TThis; is the basic premise
ron which any investment policy
must

be

choice

built.

of

It

continuously

hn(

a^fnaiiv

being

revised

additions

eliminations

arising-from

it

changed

will

affect

industries

„j

our

and

I™™ihaiii!e
is drifting into
economy

a

reces¬

investment in cyclical in¬
dustries and
companies will be

establishing this basic
premise will play a large part in
determining the results of our
portfolio
management.
It
is
a,
our

work

should like to outline

our

and

I

method

A,

■

.

,

pares

quent
form

r

pre-

forecast

a

12
of

for

months.
an

the

This

economic

with

due

is

in

for

program
ment

age.

of

for

The economic

we

is

•

established

program

trading

desk

$20,000,000

man-

General

program

for

with

First

soid

v./-

checked

on

the

H„rind

1

'

to
of

set

;

definite

security to be purchased or
and on prices. This program

limitation
eacb

*

of California

the

giVen;

is

XV' *

Telephone Company

hi^ry
selling

amount

Mortgage Bonds, Series J, Due September 1, 1986
":
/ :
•
m%)
ir,

.

*

•;

•

if.

.

tu*

during! the course of
day and all transactions are

Price 101.50% and accrued interest

normal method of operation, large
blocks

of

chased'

securities

or

price

or

may

soldi off: the
other

be

pur¬

board

if

.considerations

such - pperetion

more ad-

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.
•

If tht traipl

''^ handled
fy
^
^
admlnis"
J?r 1
«S
^u711.n^ .a"
lnft Pf°Sram is established in

HALSEY, STUART & CO. INC.

•

pjor^ 0£
made

at

The

a

above

procedure

as

to

-

BEAR, STEARNS &, CO.

DICK &

MERLE-SMITH

re-

djsposition is likewise
the end of the day.
es-

SALOMON

STROUD
v..

tablishment and implementation
°£ Pf°Sr2nis represents the me-

their

inter-;';he base on which the portfolio is
constructed.
;

picture presented




,

">.,4

BROS.

&,

HUTZLER

& COMPANY

«

WERTHEIM

WEEDEN

INCORPORATED

&

CO.

INCORPORATED

AUCHINCLOSS, PARKER &

REDPATH

& CO.

GREGORY
V

us

to set

I wish that it
go

into

greater

were

detail

possible to

regarding

IRA HAUPT &, CO.

BALL, BURGE &

FREEMAN

JOHNSTON, LEMON & CO.

& SONS

j

KRAUS

& COMPANY

ARTHUR M. KRENSKY & CO., INC.

September 12, 1956.

/

and

Mong

LaMontagne-Sherwood

COURTS &. CO.

and

relationship.

by this forecast enables

Mr.

invest-

' ?nd,. Z™*
a
buying and

This

day<
the

the

morning this

and

program

ic
is

each

companies which

Each

-

isft
noted,

the

model

Product

regard

with

&. Talbot

Youngberg.

offer to sell or a solicitation of an offer to buy these securities,
offering is made only by the Prospectus.
^
v'

translating
ideas
into >purchases and sales is the setting up
of an active purchase
and) sales

its;'^hamcs of portfolio acimnnstration
important components. The total and as
may he of interest
figure is reached by examining to you. The substance lies prithe various segments of the econ^a"ly .in
work of the inomy
and ^fitting them
together' d^vldua^ analyst which provides
National

was

&

an

The

The next step in the procedure

subse¬

giving, by. quarters, the trend of the
Gross

j should perhaps men^ Stone

Gf

investment committee, and

,

^ln?linfv1P each year,
specialist in this field
•

the

pr°

Co., ^Hannaford

economic

tion that the value of these inter~'

'

This announcement is not

consultation with members of the

of procedure
,

general

83

S

•

of

the

on

margins, tax position and return views is pretty much in direct & Co.

Purchase and Sales- 1

,

whtt^reir'^r^ct^onc.i-

part

views

•

the

sion,

vital

*s a ^reaf
ia the formulation securities business. Mr. Licht nan
.and m the checking of our own was formerly jyith Elworthy &

outlook<

panies in which to invest. For ex¬
closed out at the end of the trad¬
ample, if such economic study
ing day.
Although this is the

sions -in

>

is scrutinized for

by

mod--'

and

.

,

•

further

the regular? * weekly
the ^department at

reported

are

mnnthc

ifications

the whole broad

reviewed,

is

is

twn

dations from the research department.:

business pic.and important
developments in individual industure

pvpw

market conditions and recommen-

airlines/

covers

our investment thinkindication of the growth element
It is formally revised about present in the company. The in-

pipelines,

field of transportation.

cmeetings

ana-

guide to

a

ing.

railroads

shipping,

covers

man

to avoid the dangers

as

.

FIRST OF MICHIGAN CORPORATION

GREEN, ELLIS & ANDERSON

THE ROBINSON-HUMPHREY COMPANY, INC.

The Commercial and Financial Chronicle

12

months.

Bargains in Railroad Bonds

X

Railroad

President notes that carrier

investment company

the

two

past

the

years

To sophisticated investors,

levels.

bonds

would

represent

ing the past two years while stock

to

select

a

number

fixed income at

of

where

railroad

many

bonds

in¬

number of bank-quality
are
selling in the open

cluding
issues,

bondholder

a

market 7 at

big

discounts

the

to

.

$1,000

bond) which will be¬

per

an

these

they

should offer genuine attraction to

tractive

institutions

in

stable

insurance

.as

..

times of financial

to

think

of

^

,

ac¬

only in terms of stocks, it might
a

great deal of difference between
and

mental

bond.

a

The funda¬

difference between these

two? types

of

significant.

securities

A

is

of

past
bond

two

years

based

sizable. As
bonds

quite

$1,000 first mort¬

est

are

result, many railroad

a

against

selling at the low¬

now

prices and

the

offer

highest

Year

.;77.

:

v,

Moody
Rating

issued

Bonds

:7

A

A

Louisv.

&

Nashv.

First

&

ref.

Ba

■

The

77

Great

..

RR.

27/6%s

First

Co.

*

Co.

ref. 3V8s ser. D, '95

First

1945

Aa

The

&

Pacific

Total

cost

of

($1,000
initial

2yas

1

Railroad

the

of

C,

ser.

1991____

same

bonds

at

amount

six

above

prices.__

($1,000

recent

3.55%

82

3.51%

.r

,

*

each

of

2.44%

106.71

*7

investors

89

above

prices

portant,

3.05%

Arbor

4s,

Cleve.,

Cin.,

7
Moody

at

&

impr, 4 '/2S

&

RR.

•D

„

Ba

„

59

N.

Y.

3s' 1980
&

Cent.

3j/2S,

H.

First

Alleg.

First

The

yield

High

Low

83—

4.82%

$1,040

$740

Curr.

B

values 1946-56*

Second

Del.,

,

6.08%

74

(now

1,000

O.

RR.
4s

cons.

Golf

of

Manufacturers

First

;7

Ba

First

N. Y. Lack. & Wes. Ry. Co.
1st & ref. 4J/2s ser. B,'73
Northern

,

cost

75

($1,000

each

market

$6,000

85

5.29%

Lack.

W.

&

Die.

'

7/

of

valuation

•Indicates high
fractions.

the

principal

Senior

six

amount

issues)

of

at

70

1140

N.

Y.,

10-year

period

RR.

680

7

ref.




close

attention.

Tdbics to be discussed include:
investment
select

opportunities; how to
value
analysis;

securities:

"Tax Shelter"; market forecasting
and timing; portfolio management;

and your company.

you

The instructors

vise

special

glad to ad¬
on
their

are

members

course

the

throughout

problems

series.

Registration is
School

at the
Research.

open now

Social

for

John

Kaplan Adds

(Special to The Financial Chronicle)

.>'•

(Special to The Financial Chronicle)

PETERSBURG, Fla.—Fran¬

ST.

cis

A. Lay has

become associated

with R. F. Campeau Co. of De¬
was

formerly with Bache

$6,000

of

the above

4V2s,

yield

Months*

$40.00

5.00^

Apr -Oct

French & Crawford, Inc.,

40.00

4.71%

Mar-Sep

Street, Northwest.

45.00

760
1974

45.00

850

5.92%

May

5.29%

Jan

interest

per

940

560

bonds

35.00

610

Jun

5.74%

monthly income

at fixed

4.73%

to

of

-

Dec

7'''.:'.'77;/..'7
35.00

650
bonds

5.33%

Feb

-

Aug

April

8/21-1956 omitting

-a—

July

-1-

John O'Donwith

Salle Street, members

of the Mid¬

Exchange.

5.31%

each of the above six bonds would produce

With Investors

Planning

(Special to The Financial Chronicle)

17.50

17.50

August
-ww—__
September 7----—--------

20.00

October

20.00

has

November

22.50

Investors Planning

17.50

New

V' S2.50

——-7—-——\

December?

17.50
-——;

—

associated

become

$4,520

follows:

$22.50
j

_

June

has

20.00

——

March

$4,000

as

CHICAGO, ILL.

west Stock

($1,000

market prices—.

Adds

Henke

Swift, Henke & Co., 135 South La

$240.00

amounts

Swift

20.00

January

1946

amount
recent

68 Spring

(Special to The Financial Chronicle)

July

-

nell

annum

February

$1,000 bend,

at

ATLANTA, Ga. — James W.
Fletcher III is now connected with

Nov

-

'

:

issues)

(Special to The Financial Chronicle)

Annual

.

&

principal

six

Joins French & Crawford

int. coupons

coil.

&

♦Semi-annual interest coupons on $1,000

$6,210
per

ceive

Semi-annual

680

recent

.

value

practical in¬

Co.

1998

cost
of

May
and low market

offers

guidance to all concerned
with the handling of money. Re¬
alistic appraisal of investment ob¬
jectives and opportunities, as well
as the avoidance of psychological
foibles and prevalent pitfalls, re¬

850

Hudson^Riv.
Railroad Co.
•• 7*- 77'''
Cen.

:.7.V.7;V

y,;OyLake Shore coll. Tr. 3Vis,

each

Total

1,030

4.29%

$4,760
over

v

7'/

Approx.

..

above

course

interest

B, 1980

First ref. 3'/gS 2000

Senior

:

Co.

Morris & Essex RR. Co.

800

'

prices

Market

1,060

4 67%

First

Pacr Ry. Co.- General lien 3s, 2047—

of

3.37%

First

60-

Approx.

89

7- .'•••

RR.

33

This

vestment

troit. He

Committee.

Co.

ser.

First extended

540

77"'7;y.;7

:

Ba

and

Guide to Mutual Funds and In¬
vestment Companies."

Division,

Co., is Chairman of the Di¬

$1000

bond

•

4V2s, io«5
Lehigh Valley Ry. Co.

First

y.VO

Gentl

&

Penn.

:77\:;:Vi'-

Ba

St.

Ba.

Prenticeof "Your
"Your Buying

$800

& Wstn Ry.
4s,
1998

B.

First

ser.

Riv.

Inc.

Curr.

per

Range of Market

(8/21-56)

1997

Editor,
and author

Investments"

Exchange

Stock

Approx. price

'

■

Co.

Louis Div. 2nd

Currency

-

Chief Economist

Barnes is

Financial

Golf Tourna¬

'

St.

<-

,

C

First

price

——

Nash.

Trust

position

Ba

Value

Louis Ry. Co.
Ref.

E' 1977
Louis.

of

Vice-President

Mtge.

Rating

Sizable Discounts

Ba

r

75

Fall

Cashiers'

the

guests are expected to attend.
Carl
L.
Mochwart, Assistant

(8/21-56)

Co.

&

and

-

MIAMI BEACH, Fla. — Betty
Firms, will be held at the White
L. Corley has been added to the
Beeches
Golf & Country Club,
staff of John H. Kaplan & Co.,
Haworth, New Jersey, on Thurs¬
Hotel Fontainebleau.
day, Sept. 20, George J. Miller, of
Hallgarten & Co., and President
of
the
Cashiers' Division, an¬
With R. F. Campeau '
nounced. About 150 members and

generous

3.51%

B

First

Chi.

annual
of

Railroad Bonds Combined to Establish Regular Monthly Income
$5,000.00

1998

Mr.

New

vision's

•

RR.

a

■

Cashiers' Golf Tourney

im¬

777yy';y7^/'-77'~y\

position
Ann

at

low¬

upward. In the interim, in¬
are being treated to rail¬
on the bargain count¬

The

coupled

when

income

a

er.

rate.

Mtge.

t

A

especially

fixed

and

road bonds

large

quite

are

easing in gen¬

vestors

LIST

Approx.

The

turn

possibilities

whom

gains

an

ering of interest rates may have
to be witnessed before bond prices

com¬

and

3.37%

six

int.

29

to

capital

Ba

First
B

funds

2.91%

.

Rating paymnts.

value,

credit conditions

eral

investment

including investment
pension

•

& Co.

Contin-

61

at "face"

special

for

82

2.81%

$6,109.50

From "Face"

Ba

offer

various

3.96%

Years of

uous

government policy to re-estab¬
lish support of government bonds

at

High-Yielding Railroad Bonds

Moody

bonds

to

3.91%

bonds

of

issues)

the

Such

80

*

3.07%

102.19

First

LIST

.

of

"face"

79

with

__

market

near

panies,

L

3.07%

or

Factors

Reversal

railroad
issues4 will
itself and the " trend of
prices shall turn upward, remains
to be seen.
An abrupt reversal

prices

to

a

spend

as

event

appeal
funds

"* '

First

Approx. cost of $6,000 principal amount of the
issues)

88—

as

a

:

Banking

Committee.

including

only 2.91%
first issued.

in the

return

ever
\

Virginian Ry. Co.

$6,000 principal

each

offering

Dynamic

Co.

Pirst Ben & ref. 3s. 1995__

.

now

2.92%

101.87

Reading Company
Union

,

yield

(8/21-56)

"

-

101.68

Baa

.

price

then

Commission;

Exchange

Senate

-

Just when the decline in bonds

Association

■

t

r

First
" " "

Aaa

•.

yield

3.13%

798Vfe
,

'85

1945

Ref.

'

3yes ser.. F,

1946

.

100—

G,

ser.

Railroad

mtge.

First

cost

' >

capital gains

:■

First

Penn.

Gen.

•m

Approx.

value.

Ry. Co.
3y8s ser. N, 1990

2003

1945

Curr.

the

week, every week in the year, in¬
cluding Saturdays, Sundays and

ment

Curr.

on

and

-

and it is employed; seven days

holidays.

the Securities

formerly served

Hall,

in
the open
market dis¬
closes such sizable discounts as to
offer possibilities for substantial

North.

Gen.
1945

of

were

"

•

of the "Commercial
Chronicle," is, well

as

and
at-, recently was a. witness before the

an

for

return

,7

p.m.

economist, author,- lee*
turer and radio commentator He

and

sampling amongst the wide
variety of high-yielding railroad

Selling at Big Discounts

: /
Initial ■
• Mtge.
offering
position price

y

.

.

,

1

1945

market

return

"

7:00

to

Mr.: May,

known

The $6,000 prin¬

of

rate

A. Wilfred May

and Financial

regular

'*
Such income jbf the investor

bonds
Railroad

establish

V-

bonds,
"goes on"
continuously.
Thus, it might be said for the man
who owns bonds, that his money
works
for him while he sleeps

A

From "Face" Value
■

present

a

when the bonds

LIST A

Quality-Grade

'/

on

5:30

be

he derives from interest on sound

vailing market prices would cost
only $5,000.00 which amounts to

the

has

prices

weeks'

opening Thursday, Sept. 27,-from

(

been
downward and this has applied to a combined discount of $1,000.00
from the $6,000 "face" value or
all
principal groups of bonds—
government bonds, municipal and principal amount that will be¬
public authority (tax-free) issues, come due upon maturity of the
The $177.50 of annual in¬
bonds of industrial corporations, bonds.
public utilities and railroads. The terest produced by these 6 bonds
is equivalent to a return of 3.51%
decline in railroad issues has been

securities

be well to recall that there is

stock

the

trend

stress.

For those who have become
customed

For

market

might

bonds

to

investor.-

such

•

more

railroad

Dr. Leo Barnes

in which six

quality bonds produce in¬
a higher rate than when
were
issued.
Such bonds month in the year and at

a
man's house. The stockholder, companies, banks, trust companies
and large foundations.
7
such
however, shares: only in
profits of the corporation as are
A Sample Bond List at 3.$1%
tends to obscure the market ac¬ realized after all expenses, bond
A list
(see List A) of $6,000
tion and trend in prices of bonds. interest and taxes are paid.
It is
Yet, bonds comprise a major seg¬ this difference! that explains why, principal amount of such bonds
ment
of
the
securities
market. for generations, insurance
com¬ composed of"$1,000 each of six
Bond
investments
of
insurance panies, banks, trust funds arid different issues, would have cost
companies, for example, far ex¬ other large investors have con¬ $6,109.50 when such bonds were
ceed their1- entire investments in sistently invested much more of issued in 1945 and 1946.
Today
stocks.
funds
in
bonds
than
in these bonds sell at from 12 to'22
By
their very
nature, their
points below their initial offer¬
moreover, bonds are classified as stocks.
ing prices. Thus, $6,000 principal
a basically sounder type of invest¬
Bonds in the Bargain Counter
amount of the same bonds at
ment
security than stocks and
pre¬
a

12

a

Wilfred May

cipal amount of bonds costing ap¬
proximately $4,520, would pro¬
duce fixed income payable each

at

come

Daily reports of activity and
prices focus the attention of the
public on stocks. Less publicity

command

announces

"Your Investments," by A.
and Dr. Leo Barnes

course,

attractive rate

manner

monthly" income.

due. upon maturity of "each
At current ..market levels

issue.

of the mortgage on

owner

combined

come

part-owner

as

lustrates the

($1,000

of a
loan secured by corporation assets
is in a position somewhat similar

from

"face" value.

sold and at very substantial dis¬
counts from the principal amount

by a corporation .as a
charge against its earnings. Such
interest and all expenses must be
paid and funds provided for taxes
before
dividends
may
be,, de¬
clared
on
common
stock. .The

prices
were
advancing,
bonds
generally were declining and the
rails have led the parade.
The
decline has now reached a stage

begin in New
September 27.

-

respect

treated

is

to
on

The New School for Social Re¬
search

an

and
possibilities for
long-term
high quality railroad bonds (is¬
sues eligible
may exist in stocks, but bargains
for- investment by capital growth seems unlikely to
have long since disappeared.
In mon stock, on the other hand, banks, trust Companies and insti¬ escape the attention of astute,
even
with
view of- this situation* it-is,inter¬ represents an equity in a business tutions in most States) that' were private "investors
modest amounts of capital to in¬
esting to note that one important and dividends at all times are de¬ -isstifed as late' as 1945 and 1946.
vest.
A large number of avail¬
pendent upon the prosperity of Today' these same bonds are sell-$
group of securities presents a ra¬
able issues makes possible some
dically different picture. Instead the business and are subject to ing in the open market at„• prices
interesting ^ arrangements in se¬
of going up, the price of railroad the discretion of directors.
many points lower than the prices
bonds has been going down. Dur¬
The interest attached to bonds at which these bonds- were 'first- lecting railroad bonds. - List C il¬

values

attractive

still

and

sound

securities selection and

on

York City

Normally, bargains attract investment of approximately $4,buyers and if enough buyers enter 760 and provide fixed income at
the rate of 4.73% annually. High
a market, prices strengthen. Three
particular
groups
of
investors and low market values of each
bond over the last 10 years, show
seem likely to be attracted to rail¬
variation.
Over
the
road bonds, namely: institutional wide
past
investors, particularly insurance decade these six bonds collec¬
companies; various funds, includ¬ tively have shown a minimum
ing investment companies; and, value of $4,000 and a maximum
value of $6,210.
astute private investors.
Finally,
the
combination* of
A unique situation exists with

(or
lien)
secured by tangible
property assets for which the is¬
suing corporation is obligated to
pay
the
"face"
or
principal
amount of $1,000 at a specified
future date plus a certain rate of
interest until such date. A com¬

ing rise and, despite the recent re¬
actions, many leading stocks con¬
tinue" to sell at historically high

these

Series

management

nessed.

bond represents a mortgage

gage

Be Held at New School

record of continuous inter¬

a

payments over a long period
of years, illustrates bonds that are
selling at wide discounts from
"face" value and at prices offer¬
ing high yields. At recent market
levels, $6,000 principal amount of
est

destined to hasten the
day when, if history repeats it¬
self, a distinct change and rever¬
sal "in price trend may be wit¬

*

stock market has had an outstand¬

has

years

over, seems

now

sample tables of quality-grade and high-yield railroad bonds
indicating the extent of their current attractiveness., ,
Over

short

few

a

The sharp decline in prices, more¬

selling at lowest prices and offering highest yields
in many months, appear to hare moved onto the bargain
counter which, in turn, may hasten a reversal in price trend
at a result of attractiveness to insurance companies, pension
and other funds and individual investors. Mr. Everson presents

bonds,

only

existing

InVeslmehl Course In

ljst of sip. different railroad
bonds (see List B) each of which

ago, railroad bonds appear to have
moved onto the bargain counter.

Fund, Chicago, III.

7

A

■

Compared 'with 'market !jevels,

By CHESTER S. EVERSON

President, U. S. Railroad Securities

Yielding Railroad Bonds

High

yield, or rate of return, in many

a

Thursday, September 13,1956

...

(1080)

—7-——22.50

Total for year

:

$240.00

BOSTON, Mass.—Ralph L. West
been
added to the staff of

Corporation of

England Inc., 68 Devonshire

Street.

-

.
.

Volume 184' Number 5568'.'.

The Commercial and Financial Chronicle

.

These major deficiencies in Can¬
ada's resources -compared with the
United
States
go
a
long y way

International Trade

are

toward explaining why the growth
of
the
Canadian
economy
has

Economy and Its
on

population and /-settlement. Be^
cause their exploitation
generally

Canadian central bank economist
ada's growth

world

of Canada

Research Department, Bank

being dependent

economy

pattern

-

upon

dition

continuation of

a

domestic

of exports

expense

with

m

% as

iries.

7

imporlife

of

exports of goods and serv-r

are

ploitation

of

markets.

one-

,

Can-

of

roughly

-

the

same

portion
the

pro-

in

as

United

Kingdom,
German y,
Sweden and

t

u s

This

r a

is

no

resource ex¬

involved

formidable

the

across

North

American

con-

These

the

construction

nental

railroad

of

a

transconti-

come

"

system;

On

the

other

there-

d^elopment

the
primary

rather

of

resources

Disadvantages to Manufacturing
At

trial

the other end of the indus¬

scale,

considerable

Canada stands
disadvantage

taken: place

only

^ern"mant itrge^-

High Transportation Cost

The realization of this dream Actions of foreign capital
and,
has
not, - however,
resulted
in to some extent at -least, techno.

.

Canada becoming

a

States,

likely

it

is

nor

second United
do

to

logical

so

geography, and climate.

continent

which

to

take

bursts

The line

constitutes

settlement

It

is

southerly

more

only

Consequently

place
rapid

of

in concentrated
expansion inter-

stagnation.

-

~

!
Resource Location Disadvantage

.

Taken b

Drimarv

offerd

th

~

themselves,, Canada's

exnort
Verv

the

industres

t

do

not

satisfactory basis for

develop^ent

weii-r0unded

its

that

-

gpersed with periods of compara-:

Can-

along

fringes

-.advances.

Canada's development has tended

in the foreseeable.future given
the nature of Canadian resources,

manufacture. The more advanced

of a mature and

economy

For

the

these primary resources

t

of

the

For such industries

States and, to
a
of Western Europe.

to produce

'

\

without

achieve

the

a

Catalyst

broad

as

\

afford the

high overhead costs in¬
overcoming its great
distances/ and harsh climate, to
develop supplementary lines of
economic activity, and to achieve
a relatively high, standard of liv-r
ing for its people. The growth of
primary industry in Canada has
acted as a catalyst in the process
of economic development, attract¬
ing foreign capital, creating basic
transport
and
power
facilities,
stimulating the growth of related
secondary and service industries,
volved. in

population, such

United

the

Nevertheless, the fact remains
it is chiefly on the basis of
these large-scale, low-cost, highlyproductive primary export indus¬
tries that Canada has been able to
that

Kingdom, and else¬
population is too
widely dispersed for
many such industries to achieve
their optimum scale of output on

where. Canada's

small

and

-

basis of the

the

domestic market

alone.

Consequently, it is rather
difficult for capital-intensive
secondary industries in Canada to
compete with similar industries in
other
countries,
especially the
Canada's

" States.

United

have' increased with the
of time, since

manufacturing
been toward

diminished

the

econ-

much

very

of

course

the

years,

Indeed, exports of goods and
ices in 1955 accounted for
what

a

servsome-

larger

proportion of Canada's, national product than they
to

seem

have

1910,

or

though

smaller
tain

done

in

1900

significantly

a

proportion

1870,

than

in

cer-

during the 1920s. This
Is unlike the experience of the
United
States, which became a
com par a
tively self-contained
economy at quite an early stage
in its development.
years

n

.

_

.

production, has

larger and lafger in-

Continued

on

V '

vast

region unique in
the richness and variety of its rea

range

of

which

it

hence,

economic
could

be

capable

activities

adapted,

to

and

of

supporting a
population at a high

large

very

standard

of living.
The colonies
joined political forces in

which

population
persons,

1867

to

tion,

however,

the

create

Canadian

inherited

different

kind

colonies

consisted

na-

quite

ofj region.
of

a

of

over

about
90%

of

.

whom

'

live

"Xiiity...
•

Throughout Canada's

the high cost
such

across

X Vj\
"

' '

'

.

'

i, 1981

•:

/

widely-separate clusters of settlement.

<;

v;.:".v.•.•••.v.-.-.v.v.':.Xvwrf.&iv:.

"

his-

•.

>y

.

"V...

of transpordistances

difficult terrain has been

and

'

funda-

a

mental

problem of economic
velopment.

de-

Price 100%

-

^

(and accrued interest from September 1, 1956)

>

Dependence Upon Foreign Trade
Nature has endowed the
try with an unusually large

ber

of major primary

counnum-

resources,

though the assortment is far from

This

well

offer

balanced.

Compared

the United

States, Canada is relshort of first-class agri-

atively
a

variety

of

crops.

Much

announcement

is

neither

an

offer to sell nor a

solicitation of

any

of the
Prospectus, which describes the securities and the business of the Company.
Upon request, a copy of the Prospectus may be obtained within any State
from any Underwriter who may regularly distribute it within such State.

with

•

These cultural land suitable for growing
isolated

/'

Proct®BMBnbIi -Company

'

million

16

$70.000.000

*

within • 2O0: miles of. ;the_ country's*
southern boundary, scattered irregularly across 4,000 miles in

virtually unlimited in the

sources,

there-

picture of the country from that
suggested by a conventional map:
it would show a relatively small

tation

original American colonies

inherited

today,

fore, a population map of Canada
would present quite a different

tory,

,

Development Compared
The

Mountains. v Even

.

to

securities.

buy

The

offering

is

made

only by

means

the

pockets
of
settlement
mainly
along the Atlantic Coast and the

greater part of

St.

lently fitted for large-scale grain
growing, but not easily adapted
to other forms of agriculture because of severity of climate, low
rainfall, and so forth. Unlike the
United States, Canada is heavily
dependent
on
imports for
her
supplies
of
tropical
and
semi-,
tropical products. In at least one

Lawrence River system which

had

grown

up

under

the protec-

tion of the British mercantile
system and which from an economic

point of view had been cast adrift,
so to speak, when Britain
adopted
free trade.

Their slow and

tain

of

rate

uncer-

growth
contrasled
sharply with the booming prosper-

sists

of

ity of the former colonies to the

other

south, which

stands

in

busily engaged
westward expansion and settleOne

ment.

ideas

were

of the

behind

basic

Canadian

economic

confeder-

fore

paper

the

by

Ninth

Summer

School

Rutgers,

New

Mr.

Scott

delivered

International

States

at

Rutgers

f




-

Harriman

respect, Canada
considerable disad-

the

point of view of

»

,

.

Suitable for the development

a

large-scale

steel

Kuhn, Loeb & Co.

Lazard Freres & Co.

Glore, Forgan & Co.

•

>

W. E, Hutton & Co.

IGdder, Peabody & Co.

■

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

-

Smith, Barney & Co.

Stone & Webster Securities Corporation
....

W|ute, Weld & Co.
.

.

P0SltS haS SO far Proved .HlUCh
of

Goldman, Sachs & Co.

Eastman Dillon, Union Securities & Co.

Ripley & Co.

Incorporated

resources, in that the lo-'
of her coal and iron dei

University,

Jersey.

a

from

natural

be-

Banking

Blyth & Co., Inc.

important
at

v

The First Jtoston Corporation

vantage compared with the United

cation
*A

our farmland conwestern
prairie, excel-

i

industry.

September 13, 1956.

i

.f

passage

the trend in mpdern

'

these favored areas are cut
from one another by great

disad*

vantage in this respect may even

r

over,

do¬

finds in the United States,

one

natural
barriers
of
extremely
difficult terrain, such as the Canadian
Shield
and
the
Rocky

has

at

mestic markets provided by large
concentrations of

Acts As

climate is temperate and that sizable areas of land suitable for ag-

eign trade to the Canadian

United

lesser extent,

riculture have been' found. Moreoff

over

a

pleted. The pattern of settlement secondary manufacturing. Labor is
they create consists mainly of scarce and costly in Canada, since
small, isolated centers of popula¬ it can earn high returns either by
tion almost completely dependent
employment in the highly-produc¬
on the local
mine or mill. These tive
primary? industries or
by
scattered
communities
are
ex¬
moving into high-paid employ¬
tremely vulnerable to fluctuations ment in the United States. Con¬
in external demand for the prod¬
sequently, it is difficult for many
ucts of their local industry/ since Canadian
industries
employing
they have, virtually no. alterna¬ relatively large amounts of labor
tive sources of employment or in¬ to
cbmpete in terms of costs and
come irr the same general region.
prices with similar industries in/
Another disadvantage of the re¬ say, most European countries. In
mote location of a good deal of the field of
secondary industries
primary industry in Canada is that requiring large, inputs of capital
resources tend to be exports in a rather than
labor, Canada suffer a
comparatively early stage of from equally serious handicaps.

and

A,

dence that the importance of foromy

at

com¬

pared with many other countries
in the development of - eff icient

has

in history,

late

has ; generally

connt tn lnsta?f' one-half ac: Pr^d.toothe way too rugged for
exp<Lrt?f of much m cold or of permanent
for
roughly
product.

of

.providing the export income
to pay for
imports and

needed

service foreign debt.

are

It is not surnrisine

itself

larger than the

hand, it is a much higher proportion than in the United States,
where exports account for
only
about one-twentieth of
national
product.
There is no clear evi-

problems

13

precisely the re- stages of processing and fabrica¬ low cost, high capital overheads
tion have usually been periormed must be spread over very long
ation was to follow the example quirements which a thinly-popin the vicinity of the great manu¬
of the United States by staking
production runs/These economies
ulated,
economically - immature
out a vast country stretching country is least able to provide facturing and distributing centers of scale are very difficult to
kets-

count

national

of

required both heavy initial capital
outlays and access to broad mar.

as prevails in United
States. Most of this
m
<the* Nether- enormous jand mass, however, has

some, countries;

characteristic

transport and technology, and has

high ada's southern boundary cuts off
proportion an area somewhat

a

r

is

It

primary resources that their
successful exploitation has usually

means as

.

ex¬

these

1 i a.* drawn across the North American tive.

by

develop¬

the successive

these primary re¬
export
to
world

for

sources

consumption growth at the

nationaf prod- /

W. E. Scott

Canadian

of

that*

about

A

.

been

currently tinent and Opening it up for" ex-, fore,'
represent ploitation and settlement through Canada's
fifth

Canada

suitable

land

line

ices

uct

which '

in abundance, in ad¬

ment has

..

intmost,coun-

*

main

resource

•

a.^e Plays an
the economic

.

part

major

new

and

the provide a great d,eal of direct
"> employment once the initial de¬
velopment work has been com¬

to

for grain
chiefly
minerals,
softwood forests, and hydro-elec¬
tric power sites.
Historically, the

exploitation reaching its
growth limits.

i

tant

resource

to

growing,

and much
more
diversified economy; sees past six years trade-develop¬
ment representing a reversion to earlier
pattern of Canadian
growth rather than continuation of long run self-sufficiency
tendencies; and notes the challenge to dominant U.S.A. export
position in Canadian market. Mr. Scott believes long run trend
or

neighbor

resources

does possess

and other factors shaping a maturer, much larger

ploitation;

in rather inaccessible

:y,v.

The

*

strength and weaknesses of primary and secondary production,
investment outlays, capital market and balance of payments,

may witness either

its

Why Growth Now?

foreign trade so long as the
reviews the shifting; composition,

prospers;

of

south.

little fear of Can¬

expresses

located

parts of the country at some dis¬
tance from the ' main centres of

continued to be geared to foreigir requires -rsmall amounts; of labor
trade,
instead of following the» in relation to capital,-they do not

By W. E. SCOTT*
Chief of the

(1081)

vdqe 30

14

The Commercial and Financial Chronicle

(1082)

Britain's

of

Suez Scare

Stock Market

vs.

By ROGER W.

find

Company# and that

t

United

any reason

long as it does not
property without due proc¬

desires,

"soft,"

"take

feel

ess

is

without

relinquishing sovereignty or own¬
ership of its streets. The city may
make regulations and fares as it

being

as

'

,

may
that this

so

of law."

V o

1

'

^

a

Agreement

Ultimate

their

show
real

a

I

strength.

'

that

forecast

an

line

would

ba.

ultimate

press

he
all

which

e

t

that

y

y

the

franchise to oper¬

canal.' Like all dictators;
"President" Nasser must do some¬

nations

i g n

has

ate the

thing radical to show his power
keep his job. However, the
one
thing Egypt needs most—

should respect
"t h e
soverRoger W. Babson

and

of

other

than

character—is

better

Egypt as
it more money. The new toll rates,
applies to the Suez Canal." This which like nearly everything else,
Insures that the United States will

are

not get into the squabble.
Since
that is apparently all Nasser de¬

sumer,
needed

manded, there is nothing to fight
over
except regulations and toll
charges.
President
Eisenhower
made

clear

that the

could

temporarily return
to the. old route around the ,Cape
of Good Hope.
This Suez scare
nations

railway

or

Nasser

give

will

the

additional funds.

What Nasser Fears

Neither

International

bus company

offYY

countries

For

a

Berlin

Egypt,
which

instance,

several

Stalin tried
ser's.

In

offer to sell

a

in

nor a

fair question

a

whether the Suez Canal would be

built

today,

with

possible

the

competition of air transport, elec¬
trical

transmission, and big tank¬

ers.

Suez and the Stock Market

Although there

is

scare

no

for

reason

no

one

can

selling

solicitation of offers to buy any of these securities.

forecast.

now

There¬

fore,

I repeat my forecast that
England and France and Egypt

will

arrive

at

V The

Furthermore,
our

any

we
will
policy of

present

withdrawing troops from Europe
and
reorganizing
our- fighting
strength

to conform
nuclear policy.

to

the

new

armed

the

•

•

; |

forces was-far in the future and that

studies

the

it had been making, if any, were
merely routine studies such as the military is
always making.
*
f
the

Now

Democratic

date is advocating a
basis that inasmuch

Presidential

candi¬

repeat of the draft
the

as

next

the

on

is to

war

be

fought with such weapons as atomic and hy¬
drogen bombs and guided missiles and the like
we
don't need so many men.
And the Re¬
publican Vice-Presidential candidate, answer¬

Carlisle Bargeroa

ing him, is saving that oh, this can't be done,
regardless of how desirable it would
state of

tension, he

that

says,

In other words

men.

concerning

the reduction

ing towards this

Y;

is

world

The

be.

such

in

must have the bombs, missiles
defensive in

the

on

armed

whereas

forces

matter

a

only

few

a

indication the Republicans were look¬

thing and

very same

the Democrat onslaught.

we

he is

of

months ago there was every

frightened out of it by

were

You wonder how crazy politics can be.

In the consideration of the

military appropriation bill at the last

session of Congress the Democrats appeared aghast at the "inade¬

quate" amount of
air

force

billion

and

which the Administration asked for the

money

succeeded

in

making

Administration

the

take

H.

Marsh

with

has

Bache

become

&

asso¬

Co.

Earlier

kept

in

the

session

there

were

to cut

down

on

up

incessant

an

indications

foreign aid.

about how

attack

the

that

Ad¬

The Democrats

Administration

the

was

foteigu^aidM:::IScY wheht^ffie > Ad

intending to ecbttle

request for foreign aid money

greater amount than

to the Capitol, it was for a

came

appropriated last year.

was

around

and

cut down the

Whereupon the

appropriation

T

Charles

E.

Saltzman

will

fully

appreciate

that

it

is

appre¬

\

parties

the opposition

to

up

develop issues against the party in
the

switch back and forth with the facility of the man on

can

flying trapeze is difficult to understand.
I have

hunch that Stevenson may have something

a

advocacy of repealing the draft about

effective

as

come a

promise in the '52 campaign to go to Korea.

&

think the way for the Republicans

partner in Goldman, Sachs
Co., 30 Pine Street, New York
City, members of the New York

say

Stock Exchange, Jan. 1, 1957.

of

for

a

rection

se¬

a

At least

would

you

to deal with it would be to

long time and, that while they wouldn't want to

promise repeal of the draft, they

PASADENA, Calif.—James N.
Gamble has opened offices at 520
in

with his

Eisenhower's

as

they had been studying the question of reducing the number

men

that

at

least

there

drafted.

'Y '

;

'

••

7: Y

Senator Homer Capehart of

.V

certainly looking in the di¬

were

wouldn't

(Special to The Financial Chronicle)

Bellmore Way to engage
curities business.

to

party

how the two

But

power.

be¬

James Gamble Opens

have

to

be

so

men.

many

Y Y7:Y ;.-hYY- v.YY-YY-

'

Indiana, who

to have

more

original ideas than most of the members of Congress, in his

cam¬

seems

paign for reelection is advocating that military life*be made
attractive that

Sophisticated Investors
(Special to The Financial Chronic-.,/

SAN

Price $115.75 per

,

He
■

FRANCISCO, Califs-Rolf

gomery Street.
was

&

Mr. Ronald

claims

Olseri

formerly with Wulff, Hansen

Co.

the

ing.

any

of the several

land

underwriters, including the undersigned, only in States in which
such underwriters
and

in

which

are

the

qualified to act

Prospectus

may

as

be

be

distributed.

FRANCISCO,

G.

gomery

New
Stock

a

Of

an

Others

expensive training and leave

are

Street,

York

and

members of the
San
Francisco <

Exchanges.

SAN

The First Boston Corporation

a

Securities

PHILADELPHIA




CLEVELAND

their

as

question of whether they don't forget their

again if

over

called

to be

seem

back.

Another

moving along

outmoded in

a

so

thing,

war

and

weapons

fast that there is the ques¬

]

"

year.

Forms Mutual Funds InvY
LOUlSVILLjbi, ivy.
is engaging in

Management

business

■

JOSE,

Madison

with- FIF

Calif.—Arnold

has

become

affiliated

Management

from

Bardstown

W.¬

Corpora¬

name

—-.

a

offices

Road

under

(Special to The Financial Chronicle)

Steve L.
securities
at

firm

Company. Mr. Swift was formerly
with Waddell & Reed, Inc.

Moses

J. Dp

Creger Adds

Moses

J.

:

MINNEAPOLIS, Minn.

mond

R.

—

Galarneault and

1534

the

of Mutual Funds Investment

CHICAGO

SAN FRANCISCO

Kinhard Adds Two

(Special to The Financial Chronicle)

tion of Denver.
PITTSBURGH

as soon

called in to get the same expensive train¬

tion of whether the training which a young man receives is not

Calif.—Le-

(Special to The Financial Chronicle)

BOSTON

present

the military has strings upon those who leave the

course,

Swift

NEW YORK

the

over

Smith has been added to

With FIF

Investment

huge saving

a

As it is now, young men are called into

the staff of Sutro & Co., 400 Mont¬

dealers in securities

legally

would

service but there is

methods

(Special to The Financial Chronicle)

SAN

be obtained from

service, given

time is up.

all

may

it

turnovers in personnel.

training after leaving the service and would have to be trained

With Sutro & Co.
Copies of the Prospectus

that

so-

could build up an adequate professional army.

we

.

E. Olsen and Ronald E. Olsen
have formed Sophisticated Inves¬
tors with
offices
at
127
Mont¬

share

a

than it considered it needed.

more

ministration wanted

I

Wil¬

—

Goldman, Sachs Partner

$1 Par Value

the

in

reduction

"

ciated

Common Stock

^

-

pooh-pooh

to

any

ciably.

Joins Bache Staff

liam

of America

another instance

was

sought

that

Democrats turned

FAYETTEVILLE, N. C.

Aluminum Company

nere

Pentagon

story,, insisting

(Special to The Financial Chronicle)

150,000 Shares

tnat

a

United States will keep out of

September 13, 1956

oiasc

"big business minded" Administration, -. j
saving a dollar, endanger- ,f..\
ing the country's security.
f Y-'L..'. ' TV

peaceful settle¬
but whatever happens, the

ment;

a

go

concerned about

so

and the

be several
good reasons for taking profits to¬
day on stocks, certainly the Suez
may

nor

than one-half

let

of the

a

the other stocks at the present time. What
benefiting will ultimately create a crash in
dollars, want to the stock market will be some
"expropriation." totally unexpected event which

more

New Issue

when

ago

years

A few months ago the New York "Times" published a story
by one of its Washington staff to the effect that the Pentagon
high command was giving serious consideration to a reduction
in our armed forces.
The Democrats in Congress immediately

bringing

are

The ojjering is made only by the Prospectus,

Not

remembers

stunt similar to Nas¬

a

fact, it is

fighting.

an

need

capacity so that
they will not again risk being cut

continue

This advertisement is neither

the

to

tanker

more

passed on to the ultimate con¬

Treaty of 1888 gives many nations; from American
rights in and to the Canal in per-;; be
guilty
of
petuity; but" that this does not They know this would frighten
mean that Egypt internationalized
away American,
English and
her sovereignty.
French investors. There are, how¬
From a legal standpoint it is ever, other arguments that could
much like a city which gives a be used with President Nasser.
street

the

haijm the Suez Canal I Company, oil, food, and other necessities into

ence

stated

clearly

pipe¬

Furthermore, with an increase
capacity, England and

ereignty
of
Egypt,
but
that 2 Doubtless
Nasser
Eisenhower's
nothing will be done to seriously what the airlift did
confer

direct

on

tanker

France

News
of th

By CARLISLE BARGERON

Mediterranean to the Gulf of Aqain

of

agreement will recognize the sov¬

Haifa

be from

At President

last

Ahead

pipelines

new

year

Washington

^

be built to carry oil
the Mediterranean. This

will, awaken

good op¬
portunity
t o

From

short time

a

,'

Within

to

permanent franchise, but

Egyptian trouble will not
result in any war.
Sir Anthony
Eden and Guy Mollet, Premier of
France, who have been criticized

For

could

Egypt's sovereignty.
The

States,

tioned.

peaceful final agreement will recognize

a

come

sources

only, the use of oil in England
and France would need to be ra¬

because of the Suez
harm the Suez Canal

for selling stocks at the present time
scare.
Predicts nothing wiil be done to

imports
the

canal
of
supply would be available from
Venezuela, West Indies, and the

BABSON

Massachusetts finaacial bureau head does not

oil

this canal. If
should be closed, other

through

Thursday, September 13,1956

...

Prestholdt

H.
G.
(•;

Kinnard
,
.

■

are

&

;

with John

133

South

Seventh Street.

Joins B. C.

Slepack

now

Co.,
7

Ray¬

Gregor

Christopher

(Special to The Financial Chronicle)

Slepack Ipassed

away

KANSAS

CITY, Mo.

—

Oris E.

(Special to The Financial Chronicle)

WHITTIER, Calif.—William
Payne has joined the staff
J.

D.

Creger

&

Bright Avenue.

Co.,

124

Sept.
E.

of

North

11

Slepack,

at
a

the

age

member

of

of

72.

the

Mr.

New

York Stock Exchange, was a part¬
ner

in M. J.

Slepack & Co.

i .:,.. •

Kelsay is

opher

&

now

with B. C. Christ¬

Co.,

Board

of

Trade

Bldg., members of the New York
Stock Exchange.

5

Volume 184

Number 5568

The Commercial and Financial Chronicle

w.

15

(1083)
*

Free

woVnVodraythIhpenhPnePfil0eT

Competition in Practice:

convinced
«

Advantages and Risks

that

President, Bates College, Lewiston, Maine

So
in

that

is that in

rising

is

to

define the

shall

Now

t

in which

sense

-

"f

r e e

e r m

meaning

and

ious

kinds

of

.

competi¬
tion, with its
large number

railroads,

buyers and

phone

sellers, each
being small in

As
Charles F.

Or

~

about competition

ated

result

products.

sellers,

airlines,

telegraph

matter

a

of

upon

the

of

our

tele-

our

companies,

fact

even

we

being im-

of

petition

subject

to

although

ment control.

again,

competitive, must submit to period ic examinations* The invest- 0

we

oligopolistic

ment

competi-

portfolios

companies

of

must

insurance

our

meet

competition"

kind

I

refer

to

exists widely in
the United States of
today. It is
.typically characterized by a relatively small number of sellers,
each of whom is
trying to im-

farmers

our

in

government
an

a

market

price

mother

his

by

two

in

has

compe.

I

ago

or

competi-

economic

,

Anti-Trust Policy

again

I

do

°nc.c
®
;
be misunderstood.
free competition it
sary 4° at°m'ze an
example, to break

wish

not

<•

automobile

industry, for
the three

up

companies

firms. But it is

into
nec-

that the th.re0

essaj7 to b(: sure

spent

;To preservo
is not neces-

itMsmt
myths'Tn~ tadla "during
SMSrSS
°ccasions to
its share of the market

j

a continuous study of in-'
dustry after industry with action
being taken to restore aggressivecompetition where it has * disappeared,

in groups. With-

doubt, the economic question
asked

was

...

most

frequently

mave«,

was

freeiv

rom-

maining paragraphs of this

paper

a

ims» vynai maites a freely com
petitive system work? In the remay

I suggest

t0 tnis

w

I
Second,

threefold answer

a

^stion
question,

t

In

A

involve

-.s

.

>

individually and
out

attention of the customer.

doina

in doing so, 1

vn
successful competitive

a

demands

economy

I •who

so

businessmen

competition-m i

are,

n

d e d.

Professor Malcolm P. McNaii:

am really talking about the risks

tree competitive system will faiL

can

^

sharing

this

see

....

..

First, free competition calls for
of

ernment

of

anti-trust

an

health

under

66%%.

.

kind

the

The real job is ti
of

executives ..who
i_

J*® 1 X/e ur2e-

iff--:

..

f
'. a
a11' vl*orous and ^aginative mContinued on page 23

law.

,

insurance^ }the
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 Ike Prospectus.

NEW

form of volun-

some

? ?

ISSUE

September 12, 193fl

over

In

1940,

about

40%

homes

our

.

will operate under a strong com»

-

vigorous enforcement by the gov-

''

^

this way: ".
get

VI
""

»

were

owned

by

families

living

of
the
today,

them:

in

500,000 Shares.

years

If you

broad controls.

'
■

Vi'irv-

* idv'htf

a'.:<

••

-

'fy'V''-!.;

Southern California Edison
•

:

f

X.'
*

"

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•

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'•

,

'.vKi

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•

•

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{

1;.

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1

;

.

.•*:

11 I

.•••

*' "*

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»«««««„«

Maintenance of Personal

.

.

Yes, t:.ere.are many "parts of
ef
the American economy in which
While the_ standard of living
the impact of competitive forces anc*
sharing of it are obvious

"effective"

C°ntritmtloris of free or effective
restrained. But—-and this is really competition, a more
significant
my second main part—even after contribution is the role competirecognizing this fact, it is still
Plsys in the maintenance ot
correct- to say that we rely largely personal f reedoms. If I read his-

.

have

are

equally satisfactory.
"

.»■

illustrate,

automobiles
find

we

total

in

that

is

in the sale of
the United States
95%

over

accounted

of

supplanted

.

-

,.

.

"'
<

i '

on

the

free competitive forces to reg-

ulate the economy.

""

'

'

.

'«

•

9

r

^.) l'>

w

^^

"* ~.}■

:

Common Stock

4

($25

par

i

value)

few—regardless
few
represent

a

'

'HI

>"

f°ry correctly, it is clear that the
concentration of economic power
in the hands of

for

by just
three companies, General
Motors,
Ford, and Chrysler. Yet, there is

'•

or

-

Maximization of Market Share

To

cither

been

j

Company

:

wan.t some synonyms tor.what I
am referring to as "free
competition," perhaps "workable" and
eompetition

whether

of

that

these firms. Each company spends
millions annually to improve the

My third and final preliminary
remark is that this free competition on which we have relied has
contributed much to the economic

private individuals or government
—*s a s*eP toward the loss of
personal y freedoms.
For when

quality of its product.

growth of the United States.

position

very

effective competition among

hundreds
with

of

its

achieve

field

retail

It employs
to

men

distributors

aggressive

selling.

vertising campaigns
fully developed as
plans in an all out

facts

work

-

known

to

are

as

And

its

share

shifts in

of

care-

war.

the

growth

do

not

years, while the typi-

few of

a

35-hour

competition

work

some occu-

our

week

cities the

is

already

_

.

.

Gam

in

'

•;

.

Real

Wages

Along with the fall in the

work

come
earlier retireon pensions, the cofbreak, more paid holidays,
and longer vacations.
Today the
typical industrial worker spends
fee

n

Perhaps the second point I need
as

an

introduction to

233 days each

year at his job: He
is away from that job—on Satur-

my

—~—

Fifth*1 International Confere'nce '^'"nsore'l
by

the

Zurich,

Green

Meadow

Switzerland,

Aug:.

Foundation

i,




195G.
9

^

at

'.

Copies of the Prospectus

ho!J,days> a"d

such underwriters

part of the
is in the hands
of
businessmen;

and

the

known

place.

Vt V%: /

be obtained from

which

the

qualified to act

Prospectus

may

as

any

of the several

dealers in securities

legally

be

distributed.

much

through trade
is exercised

or

of

it

consumer

her

she

as

the

in

wants

makes
market

This diffusion of economic
is

power

an

important factor

The First Boston

in

assuring the maintenance of personal

in

are

of it is held by labor either

individuals

unions;

freedoms.

All Problems Not Solved
Now, I would not want

you

to

vaca- misunderstand these last fewpara-

tions—132 days. Put another way,
for each l3/4 days he
works, he
-

some

may

underwriters, including the undersigned, only in Stales in which

Some

power

thousands

of

t>y

week has
ments—and

buying public.

diffused.

ly

as

-

.

-

is far from the "pure" type, it is
what I mean by free or effective
competition: it results in greater

to make

freedom of worship, and economic

economic

In fact, in

so.

established.

values for the

that

In contrast, under a competitive

Chrysler and

this

it is

system economic powers are wide-

General Motors at the expense of

While

Then

opposition.

freedoms tend to disappear.

pations in

manu¬

share

tbe police state tends to rear its
ugly head and freedom of speech,

ade or

position do
take place, as is evidenced
by reyears' gains of Ford and

facturers.

power

hours in 1890 to 50 hours by 1912
and to 40 hours for the past dec-

cent

smaller

well
detail

cal work week has fallen from 60

market,

market

the

are

call for

Price $48.50 per

concentrated and op-

develops, all those in
can safely do is to remove

the past 50

military

Why?
Because each firm is
seeking to
increase

and

powers are

development in this paper. Suffice it to say that per capita income has more than doubled in

Ad-

are

that

of

The

.

to

.

50 competing

,<

years

free

,

Vigorous
-

tlfe cotSlry

,

„

"

States

major role.

V

among more peo-

„

-

effective
a

its regulatory

as

which

economy
on

<

'

:

played

Some

Moreover, during the past 25 over 55%. In 1929, we had one
we have- gradually devel- car for every six people: today,
proved products on the market, oped ; broad,
over-all monetary one of every three and one-half,
by seeking more aggressive mar- ani fiscal controls which, seek a |n 1929. less than 12% of our
>keting channels, or by reducing, more stable economy. Even the college-age youth went to college:
prices, the competing firms ac- most competitive of our businesses today, over 30%.
tively battle each other for the find themselves subject to these

.

saying:

which

an

rely

activity,

compe-

United

in

to

tion

the

tary.health coverage: today,

>

methods, by striving to place im-

the

years,

4brce

Purchasing power.

were

play

Broad Controls

position.
In
sales promotion

free

growth

place in

on

wishes

major

3^9nnrtnnivfi

untary

important role.

market

words,

in

health

our economic

am

of

place severe reprice and product

competition cannot be allowed to

higher living standards in so many Adam Smith long ago alluded to
other wa£s—in the spread of vol-

where

supports

economic

I

tition has

'greater'amounf

You,

.

govern-

.

prove

the

growth of home ownership,' the
gain in automobile ownership, the
quality standards of increase in the number of collegeour
Pure
Food, and
Drug Act. age youth attending our colleges,
Agricultural products are sold by In 1940, 9% of our population

which

that

suggest

we

combi-

,

govern-

Our banks,

to

problems..:; But

between q$4,000 and
Per ^ear*
1929, J]181 27
yeafs
hut 15% of our family
UP
had a comparable amount

..

"free

found

515?

we call it.
m e n t-established
st a n da rd's.!
It is not my intention to
ent^r Products .placed on the market
into this argument as to whiclf
by competing food and drug mantype of competition is the most ufacturers must be at least up to
desirable. Instead, let me say that the minimum

the

is

strictions

un-

have millions of

titio" has solved all

which

and

ple than ever before. To illustrate of free competition since, if, these the Hardvard Graduate School d
this sharing, currently about 44% three elements are not present, a Business Administration puts it

in

differenti-

Still

tion

by

these

nations

to

agreements,

Despite-continue

voluntary

in recent

time are shared

economy

are

of

wf

mg

-

pie than ever J^fore,
Stated
.bluntly, I do not think it is enough
for an economic system to raise
the average inco.me; the average
could |be raised by concentrating
the additional income in the
pocketbooks of a few people. But
under the competitive pressures
exerted by the bidding for employees by many firms and the
aggressive action of our trade
unions, our rising productivity
has been shared among more peo-

in which
rely on a number of competing
firms, some aspects of that com-

argue the merits of competition,
when there are a small number
of

by

spread

taken

we

ing in identical products.
a

controls

our

and

areas

Phillips

size and deal¬

as

area,

regmacion

company to regulation through a
government commission. We also

impose many

.

perfect

certain

a

xor

competition, we subject the prices
and
Services
rendered
by this

pure

talk

ouosiiiutc

a.

competition.
We
speak of

of

serving

company

var¬

of

time
with

situations.

i

and

pete against the electric company,
we usually have but one electric

the

\

time.r

role played by competition in see-

While

Economists
have long ar-

merits of

One

the

as

leisure

may

Rising Income and Leisure

not

The most obvious example is
the puMic utility field.
we
allow the gas company to com-

competition."

g u e d

do

in

From

plagued

Whether

development

not, the

or

cartels,

families lacking such coverage.
So I am not for a moment try-

society.

I

the

employment

to

I suggest that effeciic
has
made
tive romnetitinn
competition has made two
two
other significant contributions to

Extent of C. S. Regulation

use

extent

capita income and to

per

increase

an

part of the

a

the

are

the

our

remarks,

noted

living.

we

P

a

bution to: rising
per capita income, leisure, and maintenance
of personal freedom.
'

healthful

free

.......

a social
point of view. President Phillips
defines free competition found in the United
States, extent
relied upon it to regulate the
economv, and depicts its contri¬

—

defined

which it is relied upon to
regulate

and businessmen with

I.

those necessary to
minimum
standards
of

time,

preliminaries

the economy in the United
States,
and indicated its contribution to

anti-trust

ZURICH, Switzerland
Prob- American
economv
we
ably the best point of departure rely on free competition
for the remarks I want to make regulatory factor,

the

have

we

competition,

freely competitive system - requires vigorously
action, competitive-minded environment,

a

for

much

which

the passage of time

with

below

IV

Bates College President, in
addressing Zurich audience, main¬
tains

iikePit

still

income,
we
of families

thousands

incomes

By DR. CHARLES F. PHILLIPS*

enforced

largely responsi-

are

combine in restraint of trade: this
tendency has not disappeared with

have

n

live system

;

the tendency of businessmen to

the first to admit that under such
^ system> ar}d despite the growth
in
per
capita

th^

hv'sm cffprtiv^
rW~
by an effective qompeti-

leashed

.

Its

!LVefSyS,te+m ** pe^Ct; Lejmeb*

"

graphs.

By

no means am

to say to you that

a
..

I trying

free competiv

:

•

'

Corporation

Dean Witter & Ccb

The Commercial and

»

16

earlier

THE MARKET... AND YOU

Thursday, September 13,1956

.

the

as

rebound

previous week's derstanding that many are the
largely techni¬ problems facing the carriers,

was

*

It

*

just

marking-time
operation—possibly a tighten¬
ing of market operators* belts
was

the

blow'* that will

indications

for the

heed

More

stocks

than

any-;

long period is there

a

for that certain in¬

now

centive to get either the bull¬
ish or: bearish forces off their

haunches, to begin anew their
onslaught either to fresh tops
to

the

market force Suez is

a

"old hat"—with but the pos¬
sible

exception of the remote
danger of a war flaring-up.
still

factor

a

for

few

a

foreign oils, among them
Royal Dutch, but for the main
body of pivotal issues its in¬
fluence has

its

run

;

course.

:

three

next

news

is

^ themarket play

mentators

com¬

Here*s

Check

a

,

are

s

raised

times since

the way

year

-

,

^

from

average

*

1945, and may go
Eastman

there:;

Household

market

McGraw-Hill

General Foods;

Publishing, Florida Power

sues,

penal

V

*

*

low-priced is-

the

Barium Steel.and. Im-

have been

Ltd

these

Rubin

Willard F. Rice

Hardy

The nominees for office for the year
*

1956-57 are:
Yarnall, Biddle & Co.
Mundy, Stroud & Company,

President—Samuel M. Kennedy,
First Vice-President—James G.
:

Incorporated.

:

c

-

Second Vice-President—James B. McFarland,

sist„

th

border

1"

.

III, Hecker & Co.

of

outer confines

a

Secretary—Rubin Hardy, The First Boston Corporation.- l ;
Treasurer—^Williard-F." Rice; Eastman Dillon, Union Securities

the

onto

&

Co.

'

|

:

company
NATIONAL

SECURITY

INC.

ASSOCIATION,

TRADERS

v

The Nominating Committee of National Security Traders Asso¬
ciation Inc., composed of

John

,

W.

St.

Bunn, Stifel, Nicolaus
Louis, Chairman.

&

Company,

Incorporated,
\

,

Homer J. Bateman, Pacific Northwest Company,
Charles A. Bodie, Stein Bros. & Boyce, Baltimore.
Charles C.

-

v

,

Seattle. •"'*
*■
'
King, The Bankers Bond Co., Inc., Lousville.

Walter G. Mason, Scott, Horner & Mason, Lynchburg.
Fred T. Rahn, The Illinois Company, Chicago. :
Leslie B. Swan, Chas. W. Scranton & Co., New Haven,
have submitted the following candidates for office of NSTA for 1957:
.

-

„

III

UnionCar bide & Carbon:

tured by occasional spurts of I,,v''as hard for them to pas^ weeb when Union Oil of
fathom out such doings and
California brought in a real
strength and weakness in the
threatened to call the
commercial oil well in Costa
aircrafts and steels. It so
hap¬ ATT nennle »nd
ATT
beople and ask: "How
Ricai; the .best producer2in
pened that only when these
come?"
Central America. Phillips
groups were soft were they
:
*
sic
able to lead the-remainder of
Pete's announcement of a 1.5
The spotty strength shown
miHion ton high-grade uranithe
market;
when
they
,

McFarland,

American Can; Phillips Pete;

which makes a big-time "find"
the day ATT sold ex-dividend
of. oil or mineral; in a new
and ex-right a total of $9.62 Vi.
area
Such Was the case this
market week Was fea¬

..

3.

J.

Mundy

Edison; Sherwin-Williams;

Among

disappointment over
days was the crush of calls
the Maine election and letterssent to
the papers

ml

James G.

Samuel M. Kennedy

went;.%%'%r
The

,

y

,

Street's

MacGregor Travel
J. Heaney &

to

payable

.

,

the

made

election of officers of the Investment
Association of Philadelphia will be held on Tuesday,
Sept. 25, 1956 in the ballroom of the Warwick Hotel.

Finance;
Guaranty Trust; Corn Products Refining; Commonwealth

,

move-

•

in

be

The annual meeting and

,

novices

should

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

-

.

$50

group

the

on

*

"

x

for

Service and mailed promptly to Michael Heaney, M.

of 13 issues
have
their (dividends seven

which

and Shell Oil.

com-

...

Incidently, ATT

inclusive, $50.

Only 104 men can be accommodated, first come, first served.

Chemical • Industries,
getting a big
lost, at times, ments m the week was the
j
the Tatter on its expanin their efforts to
pin-point* conversation
tid-bit, and a ^ tato the North American
reasons for a brief
flurry up- headache to
many brokers, a continent. <
4ward or downward. For in¬ whole flock of ATT execu•*
*
*
*
T
stance, on Tuesday, there
tives and to the
newspapers.^
Then
too, ,there's been
were some trend
spotters who
^
somewhat of a flurry in those
believed some of the market
Indicative of the number of
small companies which "insoftness
reflected
Wall
market ammunition that

by

Dividend Raisers

bined, which includes General

of ATT's
Intriguing Movements

barren

so

companies

passing
e

.pa

get tne marK^ pi^y.

paradox Kodak;

a

finding General Electric far
more popular among the MIPs
than,
say,
American Telephone & Telegraph. It is
roughly twice as popular as
ATT—and yet more investors
hold ATT outright than the

Electric.

The

£nal »t
checksin.

*

It's somewhat of

*

breakfast, cocktails and lunch, return

fortune to put something ad-

people being
introduced.into the ways of
market operation through
monthly investment plan arrangements have taken a
fancy to this, the largest of
the appliance makers and a
major force in power generating equipment.
many

*

23,

The whole works, all

ir}ve?to?u actionspark ths
f°fs that have h^thegood

of

but

investors

newer

late

Sept.

Traders

on
*

Sunday,

rail late afternoon.

the

continue

dividends

As

long- time General
yield discouraged

a

depths.

As

It's

For

Electric's

*

*

-

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

Popular Issue

"real the

one

give definite

where

of

bound.

£re

time in

reason

a

for

await

to

be the

#

(probably private train), arrive Westhampton 6:13 p.m., be trans¬

1

*

*

retreat

x8

page

ported to Dune Deck, cocktail party, shore dinner, entertainment.
Saturday, Sept. 22, three meals, cocktails before luncii and
before beefsteak dinner, entertainment.

Pulling the other way, of
course, are the aluminum is¬
sues, dairy products, specialty
machinery, mining and smelt*
ing, and paint issues, as well
as the aircrafts and steels.

inability
was anything but a decisive of this group of securities to
indicator of a change in the find the support needed to
near-term outlook for security recoup even the ground lost
since the steel strike?
prices.
cal, last week's slow

from

as

*

.

.

,

;? ■; By WALLACE STREETE
Just

Continued

highs in such-group¬

soft drinks, heating
and plumbing issues, shoes,
textile weavers,
fire insur¬
ance, anthracite, r a dio-TV
shares and baking stocks.
ings

a

Financial Chronicle.

(1084)

,

^

.

andThen by the aircrafts um ore
discovery in .the Amthe spreading out of
brosja Lake area near Grants, j
support from new
orders
by the Armed N. M., also sparked action in
groups.
Forces. .Douglas seemed more
company stocks with "nearby
now

spurted their forward thrust
"drew but little

other

active

Rails

their
way

volatile

Disappointing

Bullish forces

were

reflects

vocal in

group

than

usual

to
give a good
disappointment over the
themselves.
the rail issues are acting.
*
'
Sjl

And the

but

as

a

emanating from
industry seems anything

but

cheerful

insofar

the

as

£ railroad investor ^concerned.
*

When

■

*

three

roads indicate

*

large eastern
they are study¬

^

commute

definite

1

taken
look
most

on

the

for this

reading

duction

was

company,
around

sjs

a

"Chronicle\ They

favorite.

currently

4.5%

with

price-earnings ratio,
to

have

achieved

can

yielding

the

and

oldest
our

trans¬

arms.
*

*

Conlrl thio
ih
Could this, the

,

*

rt

Market Spottiness
On

the
to

seems

whole

be

crosscurrents.

rails,

which

the

(Special to The Financial Chronicle)

riri

*




%K.c

'

x.

are

rvF

f

■

Wm. J. Burke, Jr.

Minn.—Kenneth

President—William J. Burke, Jr., May & Gannon, Inc.,

A- ^.oun® is with Minnesota Se-

First

curities Corporation, First Avenue
Building.
•
,
'

&

Curtis, Los Angeles.
Vice-President—John M.

.Co., Philadelphia.
; :
Secretary—William Nelson, II,
.

William Holzman
William

ner

.

Holzman, senior part¬

;

and founder of William Holz¬

man

Sept 7.

~
Hudson,

Thayer,

*

Baker &
J

'

..

Clark,

Landstreet

&

Kirki

Patrick, Inc., Nashville. 1

.

Treasurer—George J. Elder, Straus, Blosser & McDowell, Inc.,

& Co., New York City, passed

away

Boston.
Jack¬

Vice-President—Robert D. Diehl, Paine, Webber,

son

Second

'

George J. Elder

Robert D. Diehl

John M. Hudson

•;

.

'

Detroit.

t

.

market

spotted

with %

Besides
are

>

ROCHESTER,

appears

greater dl-

»

-

,

down

the

some

Effingham
away

Sept;

\

+ u

averages) there

substantial declines from

Lawrence

8

at

the

passe

age

of

d

78.

his retirement he had

been head of his

own

firm

former member

He was

a

of the New York Stock

Du Pont Homsey

Now

—Effingham Lawrence

15% from their highs (based Prior to

growing un-

presented

are

With Minn. Sees. Corp. /

.

11.0

a

versification

be

out¬

is*

The

a.;

.r^

a

long-term

extensive of

portation

r—rates,

this

in

Among specialties Air Re- 4* those of the^utf^f.o'nig.}

—

even

expressed

-

:.v, ■•;.

-

,

.

through internal
ing a merger scheme
basi¬
growth by expanding in the
cally for economical reasons
fast growing and
profitable
—and other carriers
put forth
proposals for exceptionally organic chemical and petro¬
chemical field.
large freight and passenger—
more

views

a

...

*

v

.

"article 'doT^ot 'neressarilii at any
time coincide, with those of the

news

that

[The

:

of

account

v

-

••

-

acreage.

the aircrafts continued

investment
Exchange.

Spencer,
Zimmerman, Pound

.

COLUMBUS, Ga. —The firm
of Spencer, Zimmerman &

name

Co., Inc., 1238 Second Avenue, has
been
changed to Spencer, Zim¬
merman,

Pound & Co., Inc.

BOSTON,

*

Mass.

—

William

B.

Bowering is with du Pont, Hom¬
sey & Company, 31 Milk Street,
members of the New York and
P.nstnn

-

Adds

(Special to The Financial Chronicle)

Stnrk

F.vehanffes.

Volume

184

Number 5568

.

..

The Commercial and Financial Chronicle

(1085)

$1,019,762.
office

of

comes

News About Banks

Bank

Westv Winfield

The
the

acquired

branch

a

& Trust

of

bank

the

be¬

Co.

new

officers, etc,

Bankers

and

revised

CAPITALIZATIONS

Kireker, Jr. has joined
department of the First

the trust

National Bank of Montclair, N. J.,
Terence
J. 7 McHugh,
President,
announced

Directors

Manufacturers

Company of New York at
meeting on Sept. 10 elected

Trust
their

Chairman

as

of

the

of

Board

and

Chief Executive Officer Horace C.

Flanigan, who has been President
since

1951.

Eugene S. HooperVice-President and Chief

Senior

Credit Officer, was elected Pres¬
ident.
This realignment of ex¬

ecutive

Sept.

on

deliers

handwrought
iron
All -ceilings are covered

de¬
cember. This space has been used
posits, etc. During the last five
for several months as temporary
years its total resources increased
to $3,209,712,518 at the close of banking quarters while the main
and lower
floor quarters
were
1955 from $2,766,392,897 in 1951.
Mr. Hooper began his banking being built.
career as a clerk in the auditing
7 An
opportunity to get informa¬
department of the National Bank
of

Commerce

resources,

York after

of New

tion

Social

on

Security,

includ¬
graduation from the University of ing the recent changes in the law,
Texas.
He later served in the will be offered to the public from
bank's credit department and as Sept. 10 to 19 by Union Dime Sav¬
the institution's traveling repre¬ ings Bank of New York. During
sentative in the southwest.
He th,i$ period a Govenamep,t repre¬
joined Manufacturers Trust Com¬ sentative wilj be at the bank's
Murray HilJ Office qp Madison
pany as Assistaj^
in
1929.
He
was
named Vice- Avenue at 39th St. each banking

The Philadelphia National Bank

placed in operation its
in

facilities

main

in

the

banking

Mawr

and

drive-

new

rear

office

of

at

Lancaster

the

Bryn

as

an

Assistant Secretary

booklets

will

be

available

and

a

Manufacturers Trust Company display may be seen anytime dur¬
New York, was announced on ing banking hours.

of
of

Sept.

by

6

Trust

facturers

Flanigan,

C.

Horace

*

Prior to joining Manu¬

President.

in

Co.

Mr.

1934,

$21

DeHaven
Develin, President of
the trust company, in announcing

availability of the
stated

that

drive-in

new

tellers

window

at

will

facilities,
the

new

accept

de¬

Marking

7/,

<•'

35

*

National

loosa, Ala.,
from

million

$9

*

A.

surplus,

of

of
on

raised

was

tional

dian Bank

treal, it

Bank

in

The

drive-in window will be open
customers from
ajj& to
3:00 p.m. Monday through Friday

tional Bank of Wilkes Barre, Pa.,

reports

capital of $1,250,000, the
amount having been raised to that
figure from $1,000,000 by a $250,a

i

service

*

H. Roy

Ottawa

3480

Boston

office

branch to which
is presently assigned as Man¬
the

Broadway,
he

144th Street and

at

ager. V

Anzalone

*.

The

* ;•

y

;

*

promotion
and

estate

loan

mortgage

department of the Chase Manhat¬
tan

Bank

nounced

Baker,
bank

of

on

York

New

Chairman
Woods

Joining
the
O'Keefe was
Assistant Cashier in

an

1950

advanced

Vice-President in
At

the

Backnick and

Edward

S.

Bernard J.

were

in

Cassidy
Assistant Treas¬

appointed

urers

the

1955.

time

same

Assistant

to

the

real

estate

and

loan department, and
Harry E. Ekblom
an
Assistant
Treasurer in the public utilities
department.
mortgage

'-'7

the

of

was

Navy

*

Dime.

.

tan

Company
is also

its

New

of

York,

17th in Manhat¬

and

the

19th

in

New

York

built

bank

project
State by the

William L. Crow Construction Co.
will

be

formally

opened

to

the

public today, Thursday, Sept. 13.
It occupies space on the first two
floors and basement of 415 Madi¬
son

Avenue,

Anzalone

an

Savings Bank

merged

After

holding,

entered

the

Mort¬

Servicing

gage
1944.

Department
in
Three years later he was
named Assistant Manager of that
department, and in 1949 was ad¬
vanced

to

the

office

of

Hold Golf

Alamogordo,

at

of

the

Board

Manufacturing

and

of

Co.

the

Ltd.,

Sept. t-/- '
appointed a

11

director

The

holes of golf and dinner. A cock¬
tail hour will precede dinner with
cash

a

bar

on

the

of 48th Street.

A

northeast

sale

of

Bank

Montreal,
office,

Montreal.

try,

Under date of Sept. 4 announce¬
ment was made by E. J. Flinn,

Vice-President
Trust

of

Company

the

the

of

Commerce

City,

Kansas

board

of

directors

of the company on that day
transferred $1 million from

are

are

Jay

Bank

welcome.

L.

Simon,

Qity National
Trust
Co., Chairman;
Jeffers, Stifel, Nicolaus

& Co., Inc.; Japies C. Bard, ShparCq.;
K. Hardy,

son, Hammill &
Jr, (Illinois

Company).; Robert J.
Kiep, Wm. Blair & Co.; Fred G.
Wangelin.
' v ■:';7 7:
7'77:

Paper

Bags Ltd., the
MacGregor

H. Roy

Crabttee

McDonnell Opens

& Bag Co. Inc., Pyramid
Paper
Products
Ltd.
and the
Cellucord Co. of Canada Ltd. He
is likewise identified with various
Paper

companies

as

a

McDonnell
the

at

Canada

of

Bank

Chicago Branch

'v.

New

announce

director.

*

*

Royal

&

James

indus¬

joined the bank in 1923, Mr. Cum¬
mings gained his eariy experience
at

a

number of branches

&

York

Co., members

of

Stock

Exchange,
the opening of an office

208 South

cago.

120

LaSalle Street, Chi¬
The firm's head office is at

Broadway, New York.

.

To Be L. H. Rose, Harmon
Effective Oct.

un¬

in On¬

tario

fice.

and

with the

department,

head of¬

Quebec,

and

has

He

been

a

member

of

to

an

offer to sell, nor a solicitation of an

Aug. 9,
bank's capital was
July 23 from $238,000
to $244,000 by a stock dividend of
$6,000.
586,

the

York

Street,
City, members of the

New

York

Stock

member of the Exchange, will be¬
a

general partner, and Har¬

riet Bell
firm.

a limited
partner in the
Joseph S. Lederer will re¬

tire from partnership Sept. 30.

offer to buy any of these

is made only by the Offering Circular.

NEW ISSUE

41,300 Shares

THE POLYMER CORPORATION
Common Stock

National

Bank

Y.,

Bank

into

merger was
West
Winfield

the
of

the

West

West

National Bank had

effective

date

common

$1,245,410.
of

the

Price

self-closing doors from
the
and from the 48th Street
side
provide supplementary en¬
trances in addition to the main

stock

of

lobby

shares

surplus

of

of

had

capital

$1,307,910
stock

(par

per

Share

merger

Copies of

the

Offering

Circular

may

be obtained from the under¬

signed only in such States in which it may

lawfully offer these securities.

the

the

Bank &

(common)
130,791
$10 each);

in

$3,500,000 and undi¬
of
not' less than

profits

$7.25

stock

At

enlarged Oneida National

of

Share

(non-voting)

Winfield

50,000, while the Oneida Na¬
tional <Bank & Trust Co. had com¬
of

per

National

of

stock

$1.00

Winfield,

Oneida

Trust Co. of Utica, N. Y.,
under the title of the last named
The

Value
.

&

institution.

Class A

.

Aug. 31 the
of

;

;

,

>

September 13,1956.

Par

As of

Exchange, will

be changed to L. H. Rose, Harmon
& Co. On that date Luke H. Rose,

on

,

name

New

the

As noted in these columns

increased

1, the firm

of Harmon & Co., 15 Broad

come

had inspection

Head, Long Island, N. Y.,
$265,000 as of Aug. 27, com¬
with $244,000 previously.

vided

are

the

Members of the Golf Committee

Woods-Dry-

other

,

in¬
price of $13 per
if tickets are bought be¬
fore Sept. 27 (after Sept.
27, $15
per person). For those not wishing
in

person,

Guests

Mr.

is

den

,

Golf, dinner and prizes

cluded

pared

mon

the club¬

for

head

The

of Glen

Co.




stock

new

$21,000 has raised the
capital of the First National Bank

Trust

new

available in

play golf, the cost will be $7
dinner and door prizes. For
non-golfers, tennis, cards or sit¬
ting will be available 7 all day.

of

This advertisement is neither

amount of

N.

Outing

to

of

the

Securities. The offering

page

bank.

Present plans are to have the
Club available all day with
lunch,
to
be
ordered
individually, 18

Assistant

Secretary.

type

corner

as

positions in the general
Mo., that
banking departments for 23 years,

♦

*

The 43rd branch of The Bankers

which

career

subsequently

The

effected
Trust

his

various

to

the

/

was " on

*

Sept. 10 by J. Stewart

appointed

.

an¬

was

President.
in
1929, Mr.

and

started

—

-

of Raymond T.
O'Keefe to Vice-President in the
real

with

V- Mr.

;>• '■

.

Manager of the

of

an

Koad, Bronx, office and in Janu¬ office
ary, 1956, was transferred to the which
bank's

Sept. 4.

For the past three

branch

'

Co.'s

Trust

turers

on

Chicago Analysis to

with the

lone,

Commerce of Mon¬

Seattle, Wash.

bank, Carmjne P. Anza¬
The City National Bank of Fort (head office Montreal)
has an¬
Assistant Secretary of Smith, Ark., enlarged its capital nounced the appointment of T. H.
Hayden Stone & Company, In¬ The
Dime
Savings
Bank
of effective Aug. 29 to $400,000, from Cummings, as Manager, of the se¬
vestment Bankers, and with the Brooklyn, N.
Y., was tendered a $300,000 by a stock dividend of curities department, head office.
Equitable Trust Company of New luncheon on Sept. 10 by officers
$50,000 and the sale of $50,000 of He succeeds H. P. Glencross who
York.
In 1952 Mr. Dunlop was of the bank and
presented with new stock.
has retired on pension. Born in
appointed Manager of Manufac¬ a gift to mark the occasion. Mr.
*
*
*
Manotick,
Ontario,
where
he
Dunlop had been associated with

main

Cana¬

announced

years he has been

Aug. 27

Crabtree, President

*

*

the
The

house.

and from 4:30 p.m. to 6:30 p.m. on

basis.

ap¬

of
of

Winnipeg

also
President q£

and provide
banking serv¬

streamlined

been

and
subsequently
held
senior
positions at Toronto Montreal and

Stewart.

P3P,er

a

on

has

Mr. Poussette entered the service
of the bank in 1927 at

Prestridge, and the Cashier Wayne

for

checks

additional

ices

of

7

*

branch

was

securities

1936.

Manager

Vancouver

Alamogordo, New Mexico, with
capital and surplus of $200,000
each.
The
President is M. R.

P£w

cash

various

office

*

Poussette

pointed

Crabtree, who
has played
a
promin ent
part in the

posits,

K.

Tusca¬

$600,000 to $800,000.

000 stock dividend.

years

Bank

head

mil¬

CHICAGO, 111.—The Investment
Analysts Society of Chicago will
have a Golf Outing and Field
A charter has been issued as
Day
of
Aug. 23 by the U. S. Comptroller at Medinah Country Club, Mediof the Currency for the First
Na¬ nah, 111., on Thursday, Oct. 4, 1956.

Avenues.

1939, Senior Vice- day from 11 to 2:30, and on Mon- Friday evenings. These banking
President in .1951, and has been days, Sept. 10 and 17, also from hours correspond with hours at
the bank's Senior Loaning Of¬ 4:00 to 6:00. Although the Social the main banking lobby.
ficer for some years.
Security representative will be in
As of Aug. 30 the Second Na¬
the bank a limited time each
The appointment of
day,
Emanupl J.

Dunlop

transfer,

bank's

department since

and
more
than
$4 million un¬
divided profits. At the same time
the regular 50 cent dividend was
declared payable Oct. 1, 1956.

in

President

this

capital,

First

and

.

in

grown

after

structure

5,

it was railings.
of
Philadelphia, Pa., announces
further with acoustical tile, floors are that a
special meeting of its share¬
the
and
administrative
policy covered with a special vinyl tile holders of the bank will be
held
making functions of the Trust and
there
is
air
conditioning on Oct. 4 to vote on an agreement
Company which maintains 112 throughout. Besides the vault and dated
July 12 to merge the Dela¬
banking offices in the New York securities
areas
in
the
lower ware Valley Bank & Trust Com¬
metropolitan area and is reported banking level there is a glasspany of Bristol, Pa., into the Phil¬
to be the fifth largest bank in the walled records
room and a loungeadelphia National Bank. The Del¬
nation.
;
J
,r'
dining room for bank personnel. aware Valley Bank & Trust Co.
Mr. Flanigan has been an of¬
On the second floor, finishing has branches in Yardley, South¬
ficer and director of Manufactur¬
touches are being put on an up? hampton, Levittown and Midway,
ers Trust Company since 1931 and
town board room, a lounge, a pri¬ Pa.
its President since 1951.
Under
vate and
a
The Bryn Mawr Trust Company
large dining room,
his administration the bank has
which are to be completed by De¬ of Bryn Mawr, Pa., on Sept. 10
steadily
,

read

the

surplus, which

according
A capital of $600,000 is
reported
to the Newark
"Evening News" by the Tootle National
Bank of
from which we also quote: "Mr.
entrance. Features of the project,
St. Joseph,
Mo., as of Aug. 31,
according to Mr. Crow, President Kireker will work on investment
compared
with
$350,000
previ¬
of the construction firm, are a matters pertaining to trusts and
ously, the increase having been
pair of Otis up-and-down esca¬ estates being settled arid adminis¬
brought about by a stock dividend
lators connecting the main floor tered by the bank. He has been
of $250,000.
with the vault and securities areas most
recently employed in the
*
*
*
on the lower banking
department
of
floor, com¬ trust
Guaranty
As a result of a stock dividend
plete floor to ceiling paneling of Trust Co. of New York."
of
$200,000, the capital of the
all walls, specially designed chan¬
♦
*
*

responsibilities,
is to strengthen

stated,

the */' financial

lion

C. Frank

branches

profits to

Oneida

consolidations
new

divided
makes

17

A. G. Edwards & Sons

t

-

,

V

_

;

.

The Commercial and Financial Chronicle

-

*

.

.

Thursday, September 18,1956

.

surplus labor from agriculture to other occupa¬
needed.
Candidate Stevenson, as it is with politicians, hris had

from either candidate.

There

t

about the

good deal that is not complimentary to say

Administration and its treatment of the

farmer. One would

that he had something new and constructive to
though that he seems to know of nothing
that is essentially different. His is the familiar story,
though the words are at times different. Food stamp plans,
free school lunches on a bigger and better scale, a "food
bank," high, firm supports and 100 % parity are the chief
ingredients of his political stew—as they have been with
many another politician in recent years.
suppose

offer. The fact is

Continued

generous enough
rural districts.
Now

comes

that he would spend
national asset, but he was

"The

important thing is to decide as a matter
policy that we want to maintain family farm¬
ing as a decent, respectable and useful way of life." It is
now "family farming" that is a "way of life" which must
at almost any price be "maintained." Needless to say, Mr.
Stevenson favors maintaining it, and can assure the voter

first and most

that President Eisenhower does not.

go

given evidence that he is aware of them. Yet both

to the farmer with soothing talk about "maintaining"

them

or

solving their problems and the like.

control

eliminates

"With
we

find

stand

of

has filed

agency

one

the
of the public welfare.

this
it

definition

essarily

a

trust laws

violation of the anti¬
so long as suca power

the "trust"

as

nec- "

abused—that

not

was

to

power

In the Alcoa
"Be that

case

as

a

was

is, so long
"good" trust.

the court said:

it may, that was not

'bad' ones; it forbade all."

,

,Ani while finding Alcoa guilty
unlawful activities under the

antitrust
that

it

laws, the court indicated

wouli

have

found

Alcoa

guilty without such specific activi¬
ties:

an

in

mind,

2

to

General
of the
bus market is considered to be a
result of more efficient produc¬
that

fact

The

ators.

Motors controls over 80%

recognize

!

-

«

-L

«

«

n

J

inr«n

« a

the Government

may

rt n

is

Motors

makes

of

most

constitute

it

violation of the anti-

a

But the court did not

trust laws.

"monopoly power" in

define such

the Alcoa case—it found

that Al¬

controlled 90% of its market,

coa

that

and

90%

was

sufficient

to

monopoly under the
law. HoW much less control would
make Alcoa

has

but

unlawful

used

to achieve its pre-eminence.

interpreted,
intent

and

or

cf

Y

n

not
them in
„

sistent with the antitrust

the country's buses (which it ad¬
mits
it does,
giving as reason

means

illegal—that is, that possession
monopoly power in itself may

cf

or may

,

,

monopolize, and the intent to

monopolize. ... No monopolist
monopolizes unconscious of what

would be forbidden to sup¬
be able to substantiate
ply more than 50% of the buses
.
..
purchased by some of the major
ie
yvcui
jcm
General Motors
bus
operators.
The Government .
iJULLU lact
imniieVthat since Ueneral Motors
implies mat <driph* tfoes control over 80% of the bus:
£arket And against the backmakes some 80% of the buses it
is exercising a monopoly which is ground of earlier and fairly re-,
cent court decisions, it is by no
injurious to the public welfare.
means clear that this result, how"But the question is not whether
ever innocently arrived at, is conGeneral

mo¬

power

he is doing. So here, 'Alcoa' meant
hibit perpetually the alleged mo- to keep, and did keep, that compiete and exclusive hold upon the
ingot market with which it started*
That was to 'monopolize' that market, however innocently it otherwise proceeded."
The decision in the Alcoa case
is now associated with the doctrine that "monopolization per se'

pany

;

(of the Sherman Act) the

nopolist must have both the

a

Government,

cheaper and better product)
.

activities enabled General Motors'

the tion, and thus; implicitly, not un¬
lawful under the antitrust laws.
be similarly regarded was nOtwhich
But even'if the specific prac- ;specified by the court. While this
antitrust suit against
y?
<5rl
O
rl
L
-3
A.' 1
XI.
tices charged are disregarded, and decision was made not by the Su¬

hard to

the

to

General Motors in which the com¬

whether

Just Buncombe

by

competition

detriment

,

problem is buncombe, pure and simple. Ofv course there
are too many workers on the farms of the country, and
of course they are producing more than the market will
take at prices which afford a profit. Of course, the situation
will not right itself until there is a reapportionment of
resources. And, of bourse, the sort of subsidies How paid
the farmer acts not to solve anything but to retard neces¬
sary adjustments. Mr. Stevenson is an intelligent man;
he must be aware of these facts. President Eisenhower has
at times

which

discussion of the farm

this type of

an occu¬

ple, carried the following editorial nopolistic practices, and to enjoin
on July 11
under the caption "A General Motors from supplying
False View of 'Monopoly'";
more than 50% of the ous r~"The whole question of when, quirements of four of . the nation's
and if, big business gets too big principal bus operators.
and what constitutes a monopoly
Much of the discussion of the
and when is a monopoly danger- case has, however, .ignored
the
ous to the economy, is due for an
specific practices which the Govairing and redefinition, with new ernment alleges to be unlawful,
responsibilities allocated to Gov¬ and has been concerned with the
request that General Motors be
ernment and private enterprise.
of the require"But for the moment we take limited to
monopoly to mean a condition in ments of the principal bus oper¬

money

the Democratic candidate and says:

being

was

Cincinnati Times-Star, for exam-

and flattering enough to win favor in

that

power—the

monopoly

controlthe market—was not

today is

bus division to monopolize t.ie
manufacture and sale of buses by
cornering 84% of the bus market
credibly confused in reading tne in 1955. The Government, in its
meaning of the Sherman Act. The suit, is asking the Court to pro-

of national

We submit

in whicn the Su¬

Court earlier had held that

preme

prosecuted for being efficient, and
implied that the personnel of the
Department of Justice were in-

system. Without it we should be unfortunate indeed.
modest—compared to present day standards—in

taxpayers'

Trust Doctrine"

the way Congress chose; it did not
condone 'good trusts* and condemn

A

page

Act,

"In order to fall within Section

Motors

General

that

was

of this precious

from first

in violation of
and the court
reversed
the
"Good

implicitly

f Is Our fAnti-Trust Policy
the Public Interest?

a "way of life," and that as such it must be preserved
virtually all costs. It was part and parcel of the Ameri¬

the amount of the

Sherman

"

-

doubt that farming

no

the

y

industry

of

but

to avoid loss

be

the

.

agricultural regions, Mr.'
Stevenson even takes a leaf from Mr. Hoover's notebook.
It was, we believe, the successful 1928 candidate who
used to insist that farming was not merely a business

can

can

guilty of monopoliz-

ing

pation "quite different from what it was in grandfather's
day, or even in {ather's day. It can, however, work out its
own salvation if only left to itself arid spared the inter% ference of the politicians.

In his effort to win votes in

He

,

Notebook

A Leaf From Hoover's

at

found Alcoa

entre¬

who keeps abreast of the times and takes advan¬
tage of the advances in science and in technology and
who profitably operates the farm on which he and his
family live. This type of family farmer needs no tears

transfer

tions where it is

a

farm

imaginative

enterprising,

preneur

As We See It
to

the

than

rather

Continued from first page

I

,

■:

(1086)

18.

•

:

•

_

.

•

_

^

-

Court but by a Court of
Appeals speaking for the Supreme
Court, the Supreme Court en¬
dorsed the key portions of Judge^
preme

Hand's decision in its decision in
the American

Tobacco Company

in 1946. In this latter decision the Supreme Court stated:?
«,
the material consideration in
determining whether a monopoly
exists is riot that prices are raised?
and that competition actually is
excluded, but that power exists to
raise prices or to exclude compe-"
tition when it is desired to do so."-

case

laws as

with the meaning
Sherman Act.

the

Instead; the discussion of the Government's case in the press indicates two important things: (1) a

,

,

If so an investigation is in order,
Object to Congress, Not
of life" and the like,
rather startling lack of under¬
Justice Department J ^ |
and if the investigation shows il¬
standing on the part of the press
obviously a twentieth century version of the physiocratic
legal procedure, injunctions are
The key question since the Al¬
concerning the present status of
doctrines of other days, be plainly characterized for what
in order.
antitrust law; and (2) a serious coa case has been where the court
it is. When "family farming" was able to stand on its own
"But simply to ask for a cut in failure on the part of the public, would draw the line between mar¬
two feet, and did stand on its own feet, it encouraged
production (and how this will be and in turn, Congress, in under¬ ket power; enjoyed to some deh
achieved without injury to Gen¬ standing
the basic dilemma of gree by almost every seller, and
thrift, individual initiative, self-reliance and various other
eral Motors and the public inter- antitrust policy and in deciding
'monopoly power" as in the Alcoa
desirable traits in the population. It was in those: days
est, defies analysis) because from what we want our antitrust policy case. In the Genera! Motors case
quite properly thought of as an essential element in the
now pending it is undisputed that
all
appearances
General Motors to be.
General Motors controls over 80%
American way of life. If now "family farming" is no
makes
more
buses
because
it
of the bus market. This may or
makes * them better; arid cheaper/
Good and Bad Trusts Are
longer able to stand on its own feet, but must be supported
may riot be enough, when the court
leads simply to Government moForbidden
>
by the rest of the community to whom it must come with
nopoly • through
restriction
and
In respect to the first of these hears the case, or the court may
hat in hand, it is not likely to lend any strength of char¬
decide to reverse itself, or to dis¬
^marketing allocations. The direc- problems — the current status of
acter or anything else worth while to the country.
tion of such a move is away from antitrust
law—the Government's tinguish the General Motors case
free competition and free enter- charge
And let no one suppose that any of these programs
against General Motors, from the Alcoa precedent. But, to
prise and away from the general even ignoring the specific prac- repeat, the General Motors case
suggested or advocated by any of the politicians will in
principles on which the world's tices charged, does not come as a does not come as a surprise, and
any way alter the basic nature of the situation by which
greatest economy is based. As de- surprise to the stud' nt of anti- certainly not without close prece¬
v/e
are
faced today, or restore "family farming" to its
fined,such a move handicaps the trust. In 1945, when the Supreme dents. Those who view the Gen¬
eral Motors case with alarm should
efficient
and
successful
earlier status. None of them will "maintain" family farm¬
through Court was unable to obtain a
direct their fire not to the person¬
subsidizing the opposite. That is quorum to review the District
ing except on a basis far different from that which gave
no answer to the 'monopoly' ques¬
Court's decision in the Alcoa case, nel of the Department of Justice,
strength and vigor to the system in decades past. If the
tion or its admitted hazards."
the
case
was
sent to a Circuit but to the Congress or to the courts
where the law is written and insystem can survive only in this, way it is doomed, and no
w
Court of Appeals for final deciUnlawful Practices Charged
sjon> after Congress amended the terpreted.
r:! * *
politician or anyone else can long save or maintain it.
Actually, the Government judicial code to enable a Court of
The second problem which the
These are the cold facts of the situation, and we should
charged that General Motors had Appeals to serve in such circum^ current discussion of the General
all be much better off if the politicians and all the rest of
engaged in specific unlawful prac- stances. The decision, having the Motors case reflects is more basic,

Let

talk

this

about

"a

way

.

,,

-

us

for that matter

We
what

were

Stevenson is not

undertakes to
methods

either, but if he

I

~

tices

employed,

or

is

but

means

the farmer who

keep his head above water by

and procedures

use

of the

his father and his grandfather

who has not the initiative

to conform to altered
term

to face them.

not

particularly clear in our own minds just
"family farming" is, in any event. Perhaps Mr.
are

or

the adaptability

conditions, it would

another way of

seem

that the

labeling the failures in the

agricultural realm. We do not

and

monopolize the manufacsale

of

buses.

The

al-

leged unlawful acts of conspiracy
and

illegal control

were:

(1) put-

any

reason,

however,

effect of
was

a

Supreme Court ruling,
one of the coun-

written by

try's most respected jurists, Judge
Learned Hand. The Government's

What

do

the

American

people

want their national antitrust pol-

icy

to

be?

unanswered

This has been an
question since 1890,

charge against Alcoa was similar when we enacted the Sherman Act.
as
to that in the present General
competitor; (2) granting prefer- Motors case. The Government had
Does Society Want Only
ential prices to favored customers; charged Alcoa with monopolizing
Efficiency?
(3) refusing to sell buses to com- the market in virgin aluminum /. To refer to the Times-Star edipetitors of favored customers; and ingot, and with engaging in speci- torial, the writer of that editorial
(4) inducing officials of municipal fied unlawful activities to assist had little difficulty interpreting
bus
lines
to
write
restrictive in attaining this end.
Alcoa was the language of the Sherman Act.
ting

a General Motors officer in
Board Chairman of a principal

ether manufacturers of buses. The

found to control over 90% of the
virgin aluminum ingot market. In

Government

a

specifications to exclude bids from
see

why the term should be reserved for that kind of farmer




to

ture

-

charged

i

that' these

sweeping

^decision

the

court

Yet

his

even

vague:

mean a

.

.

we

definition

is

too

take monopoly to

condition in which control

"Volume

184

Number 5568

.

.

.

The Commercial and Financial Chronicle

(1087)
by

one agency eliminates compe¬
tition to the detriment of the pub¬
lic welfare."
No one would dis¬

dictate.

agree with

the

.

do

this.

But exactly how
determine when the elimi¬

we

nation

unregulated

size has not always
where efficiency would
Monopoly profits, through

stopped

exercise

How is the public welfare

be

defined

and

take

This

does

not

if

attempt

nature

of

SAN

1890.

R.*Lill,

Douglas

'<)■,

H.

B.

Franklin

&

with

Cooley & Co., 100 Pearl St.

Mrs.

Dower

..

Corp.,
'

.

.

.

Mc-

Company,

Dower

has

become

associated

was

previously with
Shearson, Hammell & Co.

Joins Schirmer Atherton

(Special to The Financial Chronicle)

.

•

HARTFORD, Conn.

P.

Eldredge

Somers

Clocker Building.

HARTFORD, Conn.—Mrs. Mary

Two With Putnam & Co.

—

D. Wilcox have joined the staff of

Samuel

have

and

joined

—

(Special to The Financial
Chronicle)

Winthrop

Madeline

the

R.

staff

Putnam & Co., 6 Central Row.

of

HARTFORD, Conn.

—

with

Schirmer, Atherton & Co., 37

Lewis Street.

■1

has

.amended the Sherman Act to grant

partial

exemptions to various
and to spell out certain
types of unlawful practices since
1890, but has not contributed much
groups,

to the clarification of
policy.

In¬

stead, this has been the not always
happy lot of the Antitrust Division
of the Department of Justice and
the courts.
..

Much

.

the

of

dilemma

be

can

explained

by the fact that the
people have two cher¬
ished objectives in this field: to
promote, encourage and reward
American

efficiency in production
tribution;
economic

and

to

and

dis¬

and

perpetuate

social

an

organization

characterized by many small pro¬
ducers and distributors. This sec¬
,

ond objective

was referred to by
Judge Hand in the Alcoa decision

when

he

tentions

commented
of

in¬

the

on

Congress

the Sherman Act:

in

passing

*

"Moreover, in

so doing it was
necessarily actuated by eco¬
nomic motives alone. It is possible,

not

because
moral

of

its

indirect

social

or

effect, to prefer a system
producers, each depend¬

of small

ent for his success upon his
own

skill and

character, to one in which
great mass of those engaged
accept the direction of a

the

must

few."

••

■

'

Unreconcilable Goals

.

Unfortunately, these two! goals
not

are

always reconcilable.

Nor

they always recognized with
equal importance.
Efficiency in
production and distribution is well
publicized and well understood*
are

although

sometimes

too
closely
bigness. The so¬
cially desirable organization of the
economy and of society is less fre¬
quently discussed, but finds its
way into public policy councils
obliquely and finds expression in

associated

such

with

unrelated

designed

to

statutes

protect

those

as

the

size farm, to preserve

family"fair trade,"

and to penalize mass distributors

through
taxes."

specia 1

"chain

store

We are often

embarrassed
by them, because it is difficult to
support them through economic
analysis because they are almost

invariably associated with restric¬
tions

on the most efficient meth¬
ods of production or distribution.

Indeed, they can not be under¬
through economic analysis
alone, for they reflect social ob¬

stood

jectives which

may

be completely

unrelated to

efficiency. And, on an
level, almost every citi¬
will agree that efficiency is
the only end of public policy.

abstract
zen

not

The question of control and pro¬

tection

against abuse of

another argument for
a

system of small producers.

force of competition, which

support

in

the

is

power

maintaining

abstract

The

we

all
our

as

main protection against the abuse
of others, may be adequate in an

industry characterized by only
few large producers or in

an

a

dustry dominated by one or more
giants, but it may also, in the ab¬
of public policing, be sub¬
ous

through not only the obvi¬

and

crude

methods

of

A wasteland of trees,
centuries. That

and trained,

in¬

sence

verted

YESTERDAY THE JUNGLE

con¬

spiracy and combination, but also
through the more subtle tech¬
niques of price leadership, tacit
agreement, and sheer size alone.
Historically, market power was
feared
because
of the political
t h a t sometimes accom¬
panied economic power. And it is

crops

was

the past,




TODAY PRODUCING ACRES

creeping vines and stagnant lagoons, unchanged for

yesterday. Today by the miracle of modern machinery

willing hands, the jungle is

a

fertile farm, producing in abundance

needed by the Americas.

Working together, each utilizing the skills of the other,

bringing the rich earth of Central America and the
America into

a

men

of good will

great markets of North

*

ri

more commerce'

United Fruit Company
~

\'

i

*

.

•

'

.

-

"

•
4

*

-

■

.

'

•

•

Office:

80

Federal

CIRCLE
AMERICAS

.

'

-

;

Company has been serving^
the Americas usefully for 55 years—re¬
claiming wasteland, stamping out dis¬
ease, developing human skills, helping
by research, new techniques and trans¬
portation, to increase the production and
sale of bananas, sugar and other
crops^
and

'General

LIVING

STRENGTHENS THE
United Fruit

living circle of trade and better living. The

i
•_

THIS

are

between the Americas, the stronger and more prosperous all of us will be.

power

also true that, at least in

...

St., Boston 10, Mass.

,

Irving

Eisenbaum has become connected

enforce¬

Congress

*

C.

36 Pearl Street.

FRANCISCO, Calif.

George

(Special to The Financial
Chronicle)

HARTFORD, Conn.—Walter H.
Singleton has been added to the

Staff

to

Now With Cooley & Co.

staff of Equitable Securities

Beath; Alfred L. Munday and Leo

to

antitrust

our

since

Equitable Sees. Adds
(Special to The Financial Chronicle)

full

(Special to The Financial Chronicle).

suggest any par¬

recognized?

Failure

ment

the

*

monopolize." our antitrust policy and our anti¬
or
inability to spell out trust law as .it now stands is not
the intent and meaning of these
consistent with the American
pub¬
words explains most of the incon-.
sistent, vague and misunderstood
or

consideration

Franklin Adds

*

ticular change in antitrust policy.
This is the responsibility of Con-,
JBut it does indicate the complex*
gress, and Congress in 1890 stated
ity of the problem. It may be that
that it was unlawful "to
monopo¬

lize

into

monopoly power, complexity of the problem.
may, in the absence of regulation,1

competition results in ignore standards of efficiency
"the detriment of the
public wel-" such action is "more profitable.

to

But any suggested
changes in antitrust policy'shpiild

of

of

fare"?

lic's objectives.

19

expediting communications.

The Commercial and

Financial Chronicle

...

Thursday, September 13,1956

(1088)

20

eration

from page 3

Continued

our '

of

our

companies.

responsibility

Electronics Comes of Age

Utility Securities
ELY

By OWEN

the long run, actually reduce po~
tential sales and cause the public

Washington Water Power Co.
Pacific Northwest Power Co.

the

ington

has a long
1889, and has

tional power m the northwest
from 1960 on, when the big *ed-

paid dividends for 60 years. As
the result of PUD condemnations,

£ralhydro projects will have been

The

served.

company

record, dating from

completed,^ f^r
utiliUes—Washington Water Power, Pacific p°wer & Light,
~
land General Eiectric^and Montana Power —have organized the
f^ific^ Northwes
D„Ki„0„„~

has lost some prop^
erties but has also gained others,

the company

48,000

The

plant

hydro

kw

at

Chelan, Wash., was sold to a PUD
in 1955 for $20 million but the

J^lfany^boura ve^ago
&
"M^n
MounSnfke

nearly double Pany
negotiated an *ms c°mpa y about a y
company
agreement with the PUD to direct ^ an application wit
Illed
the
■nlant nnerations for 40 vears and
for a license to build the
plant operations for 40 years and *°r a license to bu ^
to buy the full power output, with
h/
received

company

cost, and also

book

l0cal

sma11

01

re"

.

.

..

Hvdro

recently purchased
the facilities owned
by Citizens
Utilities in and around Deer Park,

service and it was truly in the
pioneering stage. As more manufacturers entered the field and as
improvements were made, monochrome television passed rapidly
through the various stages of the
spiral.
Color Not a New Product

to outdistance other

refined to the point where

erly

when color television apd on the horizon the indus..
entirely new

P

...

rathe?

f^ovemlnt
estPblished

...

.

industry

I feel that electronics

or

simply an

than

rSement

product.

of an
And we soon

Our employees are another
which merits special con¬
sideration. Our responsibilities in
this area include the providing of
good pay, pleasant working conditions and steady jobs. Management must take a genuine interest
in employee welfare. The socalled "human-touch" !must be
made an integral part of our philosophy and practice. Happy em-

of

true

any

other

is what Bertrand R. CanfieId,. of the Babson Institute of
.
Business Administration, has to

electronic Here

product. The cost of development
uruuuc..
an(J
manufacture must
be in

-

cent area.

AT

enough advanced when attempts
Cost of were first made to market color
kwh in the first year receivers and is it far enough adis estimated at only 3.37 mills.
vanced now to provide dependable

purchased a property from
Hill
Mining
Company,
Kellogg, Idaho, and adja-

i

million kw. and ultimate capa-

bility of 1.4 million kw.

energy

,

about this subject: "Both the

people and the institutions in a
community have interrelated responsibilities which must be recognized if all are to enjoy the
benefits of community life.
"Business has the right to ex-,
Pect the schools to provide well-

hv
n^f ^rre^ that it
ftLif
/Hft aion? com- educated employees, with good at-

af°™®tl
Sifhlle k
relatively satisfactory color fj t w

per

.

say

development work could start im-

serving

very

true

What

is

We

members should ask themselves alignment with the allocation the
whether the problem of the intro— QQj^gamer is inclined to make from
duction of color television service hig disposable income based on
the
voters
of
Stevens
County, mediately with the project in full has been handled properly. There hig individual standard of living
Wash,, approved the sale of PUD operation by Jan. 1, 1960. It would are several questions which can
properties to the company for cost about $213 million and would well be asked. For example:
|ue: tessoni we^ nave oeen
$2,905,000. On Aug. 30, the com- have an initial capacity of over
(l) Was color technology far *affi
^ become so inpany

?

to assure the continu-

gr0up

big Federal dams. Assuming that
FPC license is obtained soon,

Bunker

are

factors as flagrant misrepresentation. We must stand firmly against
unfair and confiscatory taxation,

a^

On Nov. 22,

Wash., for $950,000.

we

"ouTthatThe' consumerTas ployees make good workers and
citizens.
g°°d
definite respon¬
^e" L
We have
sibilities toward the communities
W€
Pavements. of color television in which our firms are located,
is

the

they ^will be accepted by
Public

Oregori and ldaho below Hell's Canyon, which
wouid compare in size with the

The company

Color Television

firms should not be used as an dpf;ni4.p r(*etriction<; as to what
excuse for marketing new devices
he wUl pay for such towhich have not been tested prop- Premium he will pay wr sucn im
been tested prop- nrovements'

be^wemi

River.

industry.

ness, chance

Assuring Risk Capital Flow
If

ments, the product reaches a new jng flow of risk, capital, upon
competitive stage. And so the which our further growth and expansion rely, we cannot fail to
Now, when monochrome televi- work unceasingly to provide a
sion was first placed on the mar- fair return on investments.
We
ket, it provided a distinct new must work against such harmful

_

^

It is
them

in spiral continues.

lose confidence

Our research and development
engineers are busy constantly developing new products and improving old ones. We have every
reaSon to believe that in 10 years,
a major share of our business will
come from products that are not
jn production today. But we must
b<^ patient and demonstrate our
maturity to the .Pubhc hy not
rushing headlong into the market
before adequate technical and
market research has been done.
In this highly competitive busi-

1956 earnings of $2.30, the priceearnings ratio is 16.1. The Company does not expect to do any
and northern Idaho, Spo- equity financing before 1960.
being- the
principal - city
Because of the need for addi-

plies hydro-electric power to a
population of about 530,000 in
north central and eastern Washkane

Or

Premature

4.9%. Based on estimated

to yield

Water Power sup-

Washington

distrust

to

keep

"-V

fully informed.

Public

to

witb

fhp

that

idpa

the

wihinff to buv anv nrod-

titudes> skill and work habits; the
churches to contribute persons of

Sood morals and character; the
local government to furnish fire,
police, and sanitary protection and
Presenting the right product to highway facilities;! the public
tbe right market at the right time utilities to provide water supply,

Principal industries in the area
The six hydro-electric genera- and
nrodime whenever we
agriculture, lead, zinc and sil- tors to be built for Pleasant Val- service from the standpoint of the rboo~e t0 Droduce it
mining, lumbering and related* ley will, be the largest in the consumer?
t
,.
..
. '
.
. .
(2) since coior is an additional,
•
ux
s , 7
T 1 highway facilities; the public
operations, and aluminum refin- world—49 feet in diameter—and
aluminum refin- world—49 teet in diameter—ana
f 2) Since'color is an additional ^
ing whiclmses large amounts >of will produce J70,000 kw each.
d
t
w service have we
adequately
con su m e r
Washington Water Power's resi-' of the highest "true arch" dams
tions to contribute health, hospital
dential
electric rate
1.24c per »tion ln order to determine the
Meeting Military Needs
and medical facilities."
kwh, is among the nation's lowest
It is planned to finance the enremium that the consumer will
Toward our military customers,
Mr.
Canfield goes on to say,
-15%
capital *
.
due to cheap hydro-electric pow- terprise
on an 85-*u ,o w^ivai „
-Qr boior?
we
have even more responsibili- "The community, in turn, has a
er.
As a result residential use of ratio, similar to the capital set
ties.
It is an axiom in our mdus- rjgbt to expect business organizaMonochome TV Sets
electricity averages 7.792 kwh (up UP °f other large hydro and steam
557 kwh over the previous pe- plants of base-load character, if
t firmlv believe that within the
^
tions to
riod) or about 2!/2 times the na- tbe SEC approves.
.This would next ejgbt to 10 years color telement, good
tional
average.
Residential and m.e?" about $181 million bonds vigion will give us 'one 0j the
news
fair pay> and
work;

are

"

ver

a^lyzed

'

owe our customers.

^

which (according to literature on
the project) the Company seems
hopeful of placing with insurance

rural sales provide half of

electric
commercial 21% and in-

revenues,

dustrial 20%.

,

companies on about a
Barmngs on common

The introduction of natural gas

to the
late

is expected to stimu-

area

•

-

•

-

project

-

-

-

•

roaas

resiaentiai uses

into

oi eiec-

tricity for cooking, water heating,
etc. An aggressive sales program
is expected to raise the usage of
other electric appliances including
refrigeration,

200,000

kw.

the

of

VYi"

co-

Northwest Power Pool,

Until

the
system
in
1959 and 1960.

supply from
including Bon-

power

agencies

HSf sXtaTH
It
self

spend

ly

sutiicmnt.

in

the next five

much

as

expects

to

years near-

construction

on

wneratan®rf.ci.f...

past 67 years.

member firm of the New

a

i--

Exchange

Stock

York

-

has

.

been

share

:\.v

of

The

by the firm and the third in the
state of Washington. Other offices

Witter

&

increased

consistently from $1.02 in 1949 to,
$2.11 last year, and President Kinsey
Robinson forecasts $2.30 for
x,

yetr's3 earnitof'^a1 Ut6tleWbi1t hef
years earnings
a little
bit better.

In addition to the published

earnings
tax

the

has

-company

large

savings—equivalent to $1.16

a

military.
protecting

satisfac-

in Seattle and Tacoma.
Smith, who will bp

'

anfi

rumbiings

been

0f

a
as

piling Second, -because

ot

engineering for

ffnod

for

it",
ceiver

COuld

be

that
built
the

low

a

nrice

such a reThe "portkey

to

the

^CondPset marketand the answer
tb

t

with

.Dean cessful
Co. since October 1949
has

First, because they are business as a local institution
America
from
the which should be operated for the
in the interest of its stockhold-

interim

neriod before sue-

"ntroduction
Kleppner'

jMeppuei,

of

color

can

wblcb have helped build our in- stitutions, can exist only so long

V1.1®
as me puonc permns it 10 en}twere>offiaeasbMween the mil^ dare
tar,y and com,merclal areas. has
Educational Needs
be^n a P."T 5act?r ln thauStllilu" Let me add a few words about
!°n
electronic growth. The educational institutions. Our ref?daTr tthat saved England from sp0nsibility in this area is greater
.

5

,

airliner®

a

j

xu

x

fnab,la? ,us to
wat?b thefrom our political room
national living conventions
V1T"

the noted duvux
uie uuicu adver-

^twmTog" thanithasever been before As
?
Frank W. Abrams, former chair-

darkness and ram' A"d the tel!"
aet tb.at

man of the board of Standard Oil
of New Jersey said, "It has become cIear to ellptl men o£ man.
a<,nmpnt that
a

„1100

hat ventions
irom our living
that Dermits the military combat com- ?.gement }hat Juch. a broad quesa"™ product "afmched on' p ^
"ndnct launched
Permits the military comDat com tl0n as education is a matter with
V military combat com- tfon as education is a matter with
versity of
citizens,
Jjf * "w
ter<=
what hT rpllns mander
to see and direct his which corporate citizens as well
as an officer in the U. S. Navy the advertising or marketing calls
— as weu
the market enters what he
spi- 7emffnra7aac7ntrarrpeoaint'
fS individuat's' hav.e thf, obligation
with the amphibious forces,
ral
This
ever-widening
spiral remams ai a cenxral P°mlto concern themselves."
Tbe new Dean Witter & Co. of- nnnQic.t<; nf thrPP nhaw ninnpprAlthough every person in the
We in the electronics industrv

countant

,

x

p?obhm?

reasons

,

coior

tne

Dean

new

manager,

dna

..

,

solve

can

office in the First National Bank

are located
Norman

and

prob-

a

tlve 10 xne PUDAic. lviarKei dndiy

-

Power's
y wCi
»

have

earnings

but

many military
CoXome £ets ^That are attract electronic developments have ers, employees, and customers.. A,
mmiodirmn^sets that
to th^oublic
Market analycommercial applications business, like other community mni

o.

Water

WHA K I A

we

additional

uuo
otto

tne

Washington

I

problem to the complete

? e,n9,omSa,?y buys approximate- Building is the 30th to be opened
ly 10% of its
Federal

AV«A1 A

tion of the consumer,

time

mass

lem the solution of which looms
closer and closer each day.

Pr°ject wil1 add established in Everett.

to

that

seriour tecLical

a

»v»

'

mass

resems « ,eri°"b
commercial problem

"A Avv*

laundry equipment,: of modern brokerage offices by
capacity currently Dean Witter & Co. marks the first
marli

years

indicate

sajes of color
thSt far in the
color television still ren-

ture

f
:

Witter Branch in Everett

.

each

to

mean

..

Generating
gregatesi
aggregates 354,650 kw. Construetmn
nf
mrnrmrw'c
tion
of
the
company's
Noxon

?ai>^S hydro

be

will

heating,

lighting,

and automatic

e

"

dollar

3 k % basis. rod tion and
stock would fecdvers are

belimited toj8%, it is reported,
^^d^ted dividend payments
of 6%.
The

growth but is not

industrial

expected to make any serious in-

t

for
inbut I do

onDortunities
volume

greatest

crease(j

f?1®
? wants everyprovide regular employ*bing delivered yesterday. And a
working conditions,
^ance at the world
headsatisfying
to
Jlr?e?
,! y. PaP?rs cf^" purchase goods and services lo*ainiy justifies that desire. We cally and put more money in cirmust
falJ to fnlfill our re- cujati0n in the community; to pay
sponsibilities for the research,
share of taxes to support the
tevelopment^production and de- local government; to contribute
er*^
military products. We |0 worthwhile local charitable and
must never, for an instant, rest m cultural .k . '
projects; and to be a
««+
i,+„
our Pursuit of greater reliability. good neighbor, keeping a. clean
Actuaily, being have twofor the and attractive placelooksbusiness.
we
good
of upon a
for
thankful
"The community

Co. He is
LU. ne IS

for

McLaren,

Goode

&

x.r^ authority, points m.f
nnintV out
tising : Sfv

the Uniui« umMinnesota and served

graduate ui
a grauuaie of
a

-wU1 market quotations, direct
haVt ctompl(eta stati?«cal

services,

private wires to the firm's offices
from coast to coast. An exclusive
service will be the firm's tele-

nn

competitive and retentitive. United of the electronics industry, are going numbers; to double our
States is a potential cus- present to have of engineers
pioneering stage the basic tomer
P f th lroduCt and its there are some specific groups and technically-trained men and
^tv to the consumer must be toward which we kave special re- Xnen in the next 10 years "n
order to m me next iu the marutlllty to the consumer must ac- sPonSAbilities.
be
y
women keep abreast of years m
shown.
Then, as it becomes

j
In

he

rit

to
by the the <;arrip product
For example, there our nri- on And we will have to depend
our
start
making fup same nrnriiipf stockholders.
appfoximately ceptedrnnii.incr public, other firms stonkholders. Of course, are pri- ket. the schools and colleges tn
.
,
I
and 11 reaches the. competitive mary effort must be directed provide us with these peopleyou
the
d i \H d
ds l ct wf
and +c1om5nent automatically on gtage
,
toward assuring them a reason- don't need to remind any of 3
were
free
of
Federal
income a"y t
p ne'
If the product remains the able return on their investment, of the present shortage of engitaxes
CThc amorti7atinn of Pahi
tw.i
i
same and is not improved upon, But other things are important, neers
and other scientifically
net Gorge cost will end in 1957~
Three With Logan
it goes into the retentive stage too. We must not regard stock- trained personnel. But I should
but Noxon might provide similar
(special to the financial chronicle)
which, in effect, is stagnation. If, holders as mere addressees to remind you that each of us, acsavings.)
Dividends have been : LOS ANGELES, Calif.—Leo M. however, the manufacturer im- which dividend checks are sent, cording to his talents, should do

five-yea? accelerated"1 amortizS n^^wlT^ gives
port which
-i.

tion

x,--

t

of

n...

the

big

^

Cabinet

Gorge

pTant"VanoTh%r7eTultl83Tof
com Da nvs

paid

for

common

The

about

pn

60

minute of stock market news

a

years

on

the

Katz, Ingrid B. Langton, and

stock is

selling around 37 and




currently

pays

$1 80

ated with J. Logan &

Beverly Boulevard.

Today's stockholders come from everything possible to help our
educators. *.
*
\ •
'J
This can be done in several
competition copies the improve- unprecedented interest in the op- ways: by financial grants; by the

Rob- proves the basic product to give

affili- it greater utility, it moves into a every age group and every inCo., 2115 new pioneering stage. And, as the come level and they are taking an

'ert A. Smith have become

stock

common

one

*

Volume

Number 5568

184

.

.

The Commercial and Financial Chronicle

.

(1189).
providing of scholarships; by the
underwriting of research and de¬
velopment programs; and by en¬
couraging young people to study
science

however large

company,

its

do

can

mathematics.

and

ure

small,

or

re¬

our

First,

Radio Spectrum

is

which

That

of

use

have

we

sibility.

what

of our

definite respon¬

a

is

efficient

the

in

might be called

great natural

one

resources—

the radio spectrum.

For example,
it is only through the effective
utilization of the ultra-high-frequency channels that we will be
able to expand into a truly na¬
tionwide
service.

*

,

continue to

we

channels

;

.

,

_

If
12

only the

use

for

reserved

a

very-

the

meas-

responsible

V-i:1*;'^■ r.-".':, ^•' 1

we

even

wili all benefit from
rate

a

of

growth.

a

This

us to expand
better business climate which

will

have

times
tions"

call

created

for

within

veritable
down

"temporary

our¬
some¬

disloca¬

need to

invest

ment

to

exploit our vast develop¬
potentialities. ;■
Third, we will avoid the danger
of governmental intervention and
control.

Our

stantly

on

stances

of

which

lawmakers

the-lookout

irresponsible

can

cause

have

been

industry are
amples of this in
brought
industries.
specific company or other

for

in¬

actions

or

the

otherwise.

numerous

ex¬

our

capital in
products,

an

industry,

of age, we

basic

have

when

the

history of

Standards

as

apply that which

(Special to The Financial
Chronicle)

DENVER,

Colo.
Everett
L.
Bird, William Broomhall, William
B. Clement, Gerald M.
McKeel,
Ray M. Roberts, Robert E.

-

come

we

and

to

445

^

,

r

bility,
likely

investors
to

responsi¬
be

will

provide

the

The whole industry will suffer be¬
cause

more

funds

we

the

dence in

public will lose confi¬

us,'They will hesitate to

problems, there
as

to the

of our

can

Joins Walker Staff

binding

BRIDGEPORT, Conn.—Breslav
Walter, Jr. is now with G. H.

be

Walker & Co., 118 Bank Street.

With Whitehall Sees.
(Special to The Financial Chronicle)

MIAMI, Fla.—Edward J. i Lopez

doubt

no

has

brightness of the future

industry. V

Grant Street.

(Special to The Financial
Chronicle)

ethical business conduct should be upon us the
responsibilities we
Second, we will benefit by hav¬ as important to us as standards of face as a mature
industry. If we
ing the industry on a sound finan¬
engineering.
accept these responsibilities with
cial and economic footing.
Risk
What will happen if we do not the same enthusiasm with which
capital is still needed by the electfoilics industry. If we can dem¬ fade up to our responsibilities? we havo tackled our technological
our

been

Whitehall

'

:;v-

Valley,
Young* are now
Management Corp..

F.

.

individual level.

prove

Richard

expand in

more

—

with Hamilton

know,-

now

t

,

.

This truth makes

our

learn

we

of electronics

like ratio.

of

-

As we extend

knowledge,

uses

-'.W.

we

Hamilton Managem't Adds

in

settle

us

have unbounded poten¬

tial for growth.

the

work

plants, and to have

As

firms,

our

to

in their communities.

con¬

damage to

public, economically
There

are

their

buy

our

an

crises

to the

television onstrate and

competitive

as

are

will

selves. What the economists

in

area

more

one

stature

they

that

stability will enable
we

There

But

decisions

our

more

in

sponsibility to education.

of

industry.

Every

This is

share.

reappraisal."
sort

added

the

to

Securities

staff

high-frequency transmission,
is distinct danger that we
may lose the 70 UHF channels
simply through lack of use.
70

channels

UHF

com¬

prise 85%

of the spectrum space
allocated fflr television broad¬

now

casting.

They are the television
industry's most precious, resources.
If lost hy re-allocation to other
E'RE

services, they can never be re¬
gained and satisfactory expansion
of television coverage

SENDING

will be vir¬

tually impossible.
Three

There
sider

Factions

in

UHF.

the

first

we

and

to

is

technological
have a job of fact¬

finding to do.
ice

con¬

VHF

from

move

The

here

and

Consider

to

three factors to

are

Present UHF

HROUGH

THE

AIR

serv¬

the
possibility of still
improvements
must
be

further

studied

determine

to

ell

whether

System networks

can

now

UHF service can be made reason¬

ably

comparable

..

VHF.

to

color TVito190

carry

We

;

must

study the economics to

termihe the possible 'cdst of the
And

move.

third,

ng

full

We

obtain

must

of

concurrence

the

'■']

the

and

be

that

set

will

owners

Of

this

be

must

too

night.

over

made

late.

spread

public

'

special,

plans

it

;

This

reduced

the

to

The

vision

are

of

is

key

a

is

tele¬

a

estimated

we

grams

just entering the period

now

-An early
such

feasible,

'

be

have provided

facilities with the

intricate equipment needed

country-wide network, linking 190

help

System provides service not
pro¬

but for the transmission of special

closed circuits. There's a
of this service by theaters,
Hospitals, hotels and many businesses.
use

the

It adds up to a

if
be

to

insure

after

of millions of people.

tele¬

move

channels,
shown

of

new areas

that

lot of moving ahead and

opportunity for the telephone

| company.

deci¬

be

transition, existing station
should

transmit
VHF

we

capable of receiving
programs.
To further ease

erators

is

UHF

can

purchased

will

UHF
the

the

would

all sets
sion

decision to

to

action

more

growing

This is the time to seri¬

ously consider the transition.
vision

our

programs over

mass-replacement purchases of

receivers.

of

only for the transmission of network

at

and studies show

years

more

The Bell

factor

life of

average

receiver

seven

t

ready capable of bringing color TV within
range

Now Is the Time

here.

have

the

simultaneously

and

UHF

allowed,

should

channels.

station

be

op¬

right
on

to

both

If

this

operators

permitted

quicker

amortization of transmitters, since
this is the only station equipment
affected by the transition.
These
our
or

are

some—but not all—of

responsibilities

as

members of

Benefits

From

as

an

an

industry
TV programs are

industry.

Responsibilities

flashed from tower to tower by microwaves

This tall tower at Salt Lake

City,

Met

Utah, is part of the Bell System neL

examine briefly the
benefits that will be derived if we

work that carries color TV, as well

Now let

all

decide

bilities

us

to

much

accept the responsi¬
that have been discussed.
make.

earnest

They

can

are

not

has

soul-searching

called

an

black and white,

city.
TV

from city to

The nationwide Bell System
network

is

manned

by 1000

trained craftsmen with specially de¬
signed equipment. Day and night,
they help to maintain the quality
and efficiency of TV transmission
over more than 73,000 channel
miles of wire, cable and radio relay.

THIS

and

"agonizing




BELL

TELEPHONE

BELL SYSTEM

NETWORK is

equipped to bring color TV, as well as black
and white, within reach

demand

perhaps making \yhat John Foster
Dulles

as

to

Sometimes these decisions
easy

in

broadcasting stations in 134 cities, is al¬

absolute minimum.

Obsolescence

progress

were

period of seven to
the economic loss to the
be

,

transmit color TV.

is

a

could

bin*

accom¬

But

before

now,

and

from

If this changeover

over

10 years,

System.

public have increased,

change

VHF to UHF could not be

plished

'

As the needs of broadcasters and the

of their sets.

course,

\fUidr''.U

helping to make it possi¬

ble—is the Bell

not

penalized through forced obso¬

lescence

;;

Marching right along with
color TV—and

public

through obtaining recognition that
the move is in the public inter¬
est

•

stations in 134 cities

if

technology
and economics prove feasible, we
must then attack the problem of
education.

fi

de-

SYSTEM

of

Corporation.

there

These

21

of millions of people.

:

Financial Chronicle.

The Commercial and

U-.

#.

Thursday, September 13,1956

'

Thus in the decade book value

Joins

Jchn F. Sammon

Bank and Insurance Stocks

John J. Q'Kane, Jr.
has joined the
Department of John J.
Jr. & Co., 42 Broadway,

John F. Sammon

Trading
O'Kane,

'

:

.

disbursed

^

stock is on

IRVING TRUST COMPANY, NEW YORK CITY

pay-out Of only 73% of the 1955 operating earnings, and
are
likely closely to approximate $2.50, there
appears to be ample room for the declaration of a year-end extra;
a total of $1.75 a share for the year would be within a conservative
range of the expected operating earnings.

sents

subsequently took national charters. In 1907 they consolidated
Irving Exchange National Bank. Through natural
growth and union with other banks, prominent among which were
Mercantile National Bank in 1912, and Lincoln National Bank in
1920, Irving's capital reached $23,000,000 in 1923, with deposits of
$262,000,000. In that year Irving and Columbia Trust merged. The
national charter was then relinquished and Irving continued as a
trust company under the special state charter that had been
granted to Columbia Trust. In 1926 American Exchange-Pacific
National Bank were merged with Irving, which brought capital
funds to $60,000,000 and deposits to $628,000,000.
In 1931 the bank's new main office building at One Wall Street

under the title

City, and will specialize
securities and in special

New York
in mining

situations.

June

Condition-

Statement of

S. Government Securities—

Govt. Agencies—

Stock in Federal Reserve Bank
Loans

—

Mortgages

—->i-

Security Traders Association of
York and is/still an active
member.

Interest and Other Assets

Accrued

•

(4) Au^io, the manufacture of
magnetic tape recorders for mili¬
tary and civilian use, best known

Phila. Mun. Bond Club

sional

The

League

Union

Monday,

on

3, at 12:30 p.m. The Honor¬
able Sinclair Weeks, Secretary of
Oct.

deliver

Commerce, " will
address

brief

a

Pro¬

Highway

"The

on

gram."
-

With Mutual Fund Assoc.
Calif.—John

SAN FRANCISCO,

W.

Virginia

Jr.,

Hamilton,

M.

Klimpen and D. Bruce McRae have
become

Mutual

with

affiliated

Incorporated, 506

Fund Associates

Montgomery Street.

Surplus
Undivided Profits

Other

HAVEN, Conn.

—

Alfred

Securities.4-

Loans

with Hincks Bros. & Co.,

Dacey & Asso¬

with Norman F.
ciates.

.

'■

" •

■

Inc., 157
formerly

He was

Street.

Church

'/.v,,V';i

•

of INDIA, LIMITED
Bankers

to

Kenya
Head

the

Government

in

Colony and Uganda
26 Bishopsgate,
E. C. 2.

Office:

London,
West

End

(London)

Branch:

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

Branches in India,

Emma, Aden. Kenya,

Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized

Capital
Capital

Paid-Up
Reserve

£4,562,500
£2,851,562

Fund

£3,104,687

The Bank conducts

banking

every

description of

exchange

and

business.

Trusteeships and Executorships
also

undertaken

1949

1954

1953

84% 83% 72% 72% 78% 71% 79%

10 Years

7

10

18

Over 10 Years

9

7

The

more

or

years.

following schedules give, first,

breakdown of the bank's
of return

a

of gross income; secondly, the average rate
derived from its securities holdings and from its loans:

sources

Break-Down

Sources

of

1949

1948

Gross

of

Income

1953

1951

1950

INSURANCE

STOCKS

48%

52%

62%

63%

63%

56% 61%

32

29

20

20

21

27

22

Fees, Commis. & Misc. 20

20

19

18

17

16

17

17

Loans

*On

♦On

•i

47%

of Return

Average Rate

•

,

1948

1950

1949

1953

1952

1951

Laird, Bissell & Meeds
Members

New

American

York

120 BROADWAY,

Telephone:
Bell

Stock
Stock

Exchange
Exchange

NEW YORK 5, N. Y.
BArclay

7-3500

Teletype—1-1248-49

(L. A. Gilbs, Manager Trading Dept.)

Specialists in

Bank

Stocks




1955

1954

%

.%

%

%

%

%

%

Discts. 2.77

2.65

2.77

3.05

3.29

3.48

3.35

3.61

1.97

1.96

1.97

2.09

2.16

2.67

2.48

2.77

%

&

these

(the conversion price
debentures

commences

and increases to

16%

in

Fifty-four per cent of the
outstanding common stock is pres¬
ently owned by the top manage¬
ment, who have waived dividends
on
all stock owned by them in
order that working capital may be

date

totaling

the

at

close

cur¬

to

$10

ual

otherwise, whose primary

or

objective
Based

growth.

was

conventional

on

invest¬

ment

principles the stock prob¬
ably would not be suitable for
widows and orphans although it
would certainly offer some hedge
against the
declining value
of
the dollar, which every day is
eating away the real value of
mediums we consider to be riskless avenues such as savings ac¬
counts, government bonds, etc.
For
investors
or
speculators
wishing

a

common

stock, the company's de¬

bentures

medium

other
have

to

seem

than

of merit.

deal

|

Elected

Directors

The election of

Alfred

and

in

ners

a

great

a

George S. Jones

W.

Kleinbaum, part¬
investment banking

the

firm of Wertheim & Co., as direc¬
adequate to handle their rapidly
tors of Gulton Industries, Inc., has
increasing volume.
It was not until Jjune, 1954, that been announced by Dr. Leslie K,
the public was invited
to help Gulton, President of the Gulton
finance the growth of American organization. At the same time it

initial

The

offering

Wertheim

that

disclosed

was

&

Co. recently acquired a stock in¬
160,000 shares at $4 per share.
terest in the company.
Subsequently, in May of 1955,
Gulton
Industries,
Inc., is a
$1,250,000 of convertible deben¬
tures were offered.
On April 12, producer of piezoelectric ceramics,
which are used in electronic ap¬
1956, the common stock was offi¬
cially listed and traded on the plications where miniaturization
American and Los Angeles stock and precision are important.

tabulations

of

its

it

is

apparent that Irving's trend on

Governments

has

been

to

lengthen

little.

a

noticeable, however, is the fact that in the 1948-1955 period
the gross income derived from securities has shrunk by 33%,
while the proportion of gross coming out of loan operations has
increased by about 30%: As the last table shows an increase of

..'■■x

:v
Statistical

Book

Operating

Value

Earnings

$22.54

$1.35

convertible

traded

de¬

actively

Record

Invested

Assets.

$179

that we find
in operating

r,"'

.

—

Per

Price

dend

$0.80

totaled
a

like

net

Bache

Low

20y4

15%

22.90

1.26

176

0.80

18%

14%

23.29

1.36

170

095

16%

14%

23.60

1.38

173

0.80

17%

14%

23.52

1.48

190

0.90

19%

16%

23.91

1.55

198

1.40

22%

18

hand.

Net

ended

share

in

s^x

for

1956,

30,

$3,596,074, or 29% above
period a year earlier, and

greater than a
In

sales

June

;

17%

profits of $185,412 were
year

earnings

earlier.
36

totaled

commenting

man,
Range

High
s

on

the first

Share

Divi¬

lion

months

on

Per
cents.

ooerations for

said: "A substantial increase
is expected for the

remainder

of

1956

and

our

staff

in¬
production schedule.
At
the beginning of the year we had
approximately
500
employees—
now we have 650, and by the end
of the year we will number be¬

has been built up to meet the
creased

750

The

800."

1X3

214

1.10

23%

20%

24.50

1.73

217

1.20

24%

20%

1954

24.84

1.80

239

1.30

29%

22%

orders

1955_

25.29

2.20

244

1X2

32%

29

close

will

witness

something
to

over

with

states

or

the

$15
$10

that

receipt

million

deliveries

over

Co.,

members of the
Exchange and

Stock

York

other

leading exchanges, have an¬

nounced

feld

that

has

branch

Herbert

office,

I.

located

a

of

in

totaling

million.

At

at

333

York City,

Seventh Avenue, New
as

Schein-

midtown

their

joined

registered representative.

New registered

representatives

in the branch offices of Bache &
Co.

also include Lee Lewin, Bev¬

erly Hills, Calif.; William E. Mor¬

ris,

Philadelphia;

and

James

D.

Rutter, Tulsa, Okla.

Six With Morton
(Special to The Financial Chronicle)

BOSTON,

Mass.

James

—

Birmingham, Gerald J.

management

24.28

1953___

1956

and

&

New

half, P. W. Zonne, Chair¬

deliveries

tween

With Bache & Co.

in

:

entered 1956 with
unfilled orders of over $6 Vz mil¬

More

Ten-Year

are

unlisted markets.

The company

obligations.

these

maturities

The

exchanges.
bentures
the

Government

From

the

on

Securities

1948__

Members

1955

Securs. 33

On

re¬

the

Electronics.
1954

1953

rent

orders

in¬

stock.

common

was

Int. & Divs.

earnings.

and

*28

*30

30% in the| average rate of return on loans, it is here
a main contribution to Irving's
steadily rising .trend

BANK

70% 72%

21

29

22

28

unfilled

who

conservative
a

1959).

1955

10

to

87,719 are
conversion of

the

debentures

14%

com¬

850,000

which

for

for

to

amounts

of

served

i

Authorized

stock.

stock

shares,

at
1953

1951

1950

May 1,

due

mon

*

Maturities

Loan Interest-

BANK

NATIONAL

2.4

cbmmon

shares

maturity groupings at the last several year-end dates.
1948

r;

1967, and 517,860
(outstanding) Of $1 par

5s

The bank's portfolio of United States Government obligations,
excluding the F.H.A. mortgages, was distributed in the following

1947

ex¬

The company's capitalization is
simple and compact; consisting of
$1,250,000 convertible debentures

1.4%
1.0 :

—.

as

|

principal categories follows:

Miscellaneous Assets

2.8
45.7

*

.

not

pioneers,
* ■

as

plorers.

„

which, simply

stated, is this: A theory must be
commercially profitable and pay
dividends.
In other words, they

$1,676,510,235

♦Due in five

associated

become

has

DeGenaro

business philosophy

128,010,922

i 26.0% Mortgages
S. Govt. Obligations 20.7
Real Estate

high

the

as

than

With

investor

the

for

more

a

strument

enthusiast.

operate

A breakdown of these assets into

5

(Special to The Financial Chronicle)

NEW

$50,000,000
55,000,000
23,010,922

Capital

Up to 5 Years

With Hincks Bros.

36,037,445
6,356,331

Cash
U.

Chronicle) ;

{Special to The Financial

11,350,305
2,000,000

Payable

Acceptances: Less Amount in Portfolio
Other Liabilities

Municipal Bond Club of Phila¬
delphia will hold a luncheon at
the

19457062

Dividend

—

$1,492,755,232

——

Other Expenses

Taxes and

profes¬

the

for

well

as

user

Con-

the

as

attractive

prefers

million, I feel that substantially
higher prices for this stock could
As in any company the factor
be justified.
of management is of top impor¬
As previously noted, American
tance.
It has been my privilege
Electronics has outstanding con¬
to
have
personally known and vertible debentures arid common
observed the top echelon of this
stock. I would consider the stock
company and I approve of their suitable for
any investor, individ¬

LIABILITIES

Deposits

Luncheon Meeting
PHILADELPHIA, Pa.

suitable

certone

$1,676,510,235

J.

fields

civilian

in

fidelity

\

automatic

can

33,610,925
5,905,379

for Acceptances

Liabilities

Customers'

New

between 80 cents and

$1.
Currently selling on the Ameri¬
and Los Angeles stock ex¬
computation, regulation and per¬
formance systems.
Also several changes around 13%, and paying
electronic instruments such as an 50 cents a share in dividends, a
automatic
digital controller for yield of 3.8% is available. This
use
in
the
machine
tool
and price is less than 10% below the
conversion price for the deben¬
chemical industries.
tures, thus making these bonds

potentiometers and hiptersis mo¬

16,735.355

Banking Houses

tachometers,

tors, all components of

$437,135,535
347,009.250
38,996,511
4,530,098
3,150,000
766,646,911
22,780,271

Cash and Due from Banks
U.

Securities Issued by
Other Securities

servo

motor

1956

30,

motors,
resolvers, this rate of operations, per share
induction earnings should run somewhere

chra,

ASSETS

was

2

The Security I Like Best

-

„

associated with Bear,
Stearns & Co* prior to organizing
the firm of J. F, Sammon & Co.
who were in business for 15 years,
and recently resigned as partner
in Wm. L. Burton & Co., members
of the N. Y. Stock Exchange.
Mr. Sammon was one of the
original group who organized the
He

earnings

Continued from page

Irving

occupied; land at present there are eight branches.
conducts a general banking and trust business.
-

was

a

1956

Irving Trust Company traces its origin to two banks organized
the Irving Bank and the New York Exchange Bank. Both

in 1851,

J. F* Sammon

dividend.

as

Irving's unbroken dividend record goes back 50 years. The
a regular quarterly basis of 40 cents, but as this repre¬

#

t

*

yield on a

a generous

book value; and 74% of operating earnings was

the year-end

on

V'-Vr'/fW;

■■'■m

price the

34, at which

high grade bank stock investment. The stock is selling at about
15.5 times 1955 operating earnings. In that year 8.7% was earned

Bank Stocks

—

dividends 102%.

dividend is about 4.77%,

return on the $1.62

By ARTHUR B. WALLACE:

This Week

increased by about 14%; oper-»

ating earnings 63%; invested assets 36%;
The stock sells at present at about

•••.

Morris L. Hurwitz,

G.

Erlick,

Joseph P. Par-

adis, Ernest F. Pecci and George
S.

Scruton

Morton &

are

now

with

B.

Co., 131 State Street.

C.

Volume 184

Number 5568

-.

.

.The Commercial and Financial Chronicle,

.dividend

Ralph G. Randall With
Taylor & Co.
CHICAGO, 111.—Ralph G. Ranr
dall

has

become

with

associated

Taylor & Co., 105 South La Salle

Street, in the trading department.
Mr. Randall,
who
in

has

been

invest¬

the

business

ment

for the

past 36
has re¬
cently been
years,

a s s o

cia ted

with First Se¬

of,40 cents and the extra

dividend of 40

cents

(1091)

Offers Gen. Tel. Go.

Chicago. Tay¬
lor

Co. has

&

recently in¬
stalled

wire

a

portion

of

the

and

ex¬

served a total of
telephones of all classes.
pany

For the

pansion program.
*

*

The

12

760,418

months ended June

new

bends will be redeem¬

able at the

split in

.

,

"

private
connec¬

,

tions

New

to

Kansas

and

as clearing arrange¬
the Midwest Stock Ex¬

well

as

ments

defray

York, St.Louis

Ralph G. Randall

City,

to

costs of the construction

3Q,„ 19$6fc ,^hy, cqmpany^had total
option of the company operating revenues of $65,077,158
at redemption prices ranging from and net income of
$10,185,546.
August of this year.
106% to par, plus accrued interest.
Halsey, Stuart & Co. Inc. and
General Telephone Co. of Cali¬
With Coburn Middlebrook
associates offered yesterday (Sept.
fornia
provides
local
Elected Director
telephone
(Spelclal to The Financial Chronicle)
12) $20,000,000 of General Tele¬ service in certain cities and com¬
Edwin L. Kennedy,' partner in phone Co. of California ^Vz % first
HARTFORD, Conn.—Joseph F.
munities in Southern and Central
Lalli has been added to the staff
the investment banking firm of
mortgage
bonds,
series; J,
due California. Toll service to
points of Coburn & Middlebrook Incor¬
Lehman Brothers, has been elected
Sept. l, 1986, at. 101.50% and ac¬ in and out of California is
pro¬
porated. 100 Trumbull Street.
a director of Murphy Corp.
crued interest, to yield approxi¬
vided in part over lines owned by
Mr. Kennedy is also a director mately
4.41%.
The group won the
company and other connecting
award of the bonds at competitive
With Income Funds
of
Kerr-McGee
Oil
Industries,
telephone companies, but princi¬
sale
on
Sept. 11 on a bid of
(Special to The Financial Chronicle)
Inc.; Gas Properties, Inc.; Distil¬
pally by connection with the Bell
100.35%.
NEW HAVEN, Conn. —William
late
Production
Co.; and Inde¬
Net proceeds from the financing System through the lines of The R. Keevers has
joined the staff 6i
pendent Petroleum Association of will be
Pacific Telephone and Telegraph
added
to
the
Income Funds, Inc., 152 Templu
treasury
America.
funds of the company and will be Co. As of June
;■
30, 1956, the com¬ Street.
for the two-for-one stock

,

curities Co. of

used

Halsey, Stuart Group

declared for

payment Oct. 5 on the split stock,
dividends
for 4 1956 ; aggregate
$1.92Vz a share, after adjustment

23

on

change with local and wire-con¬
Mr. Randall will

dealers.

nected

servicing these connec¬
well as in retail sales

assist in
tions

as

force

requirements.

Harvey M. Wilson has also be¬
come connected with the firm as

representative. He was also pre¬
viously with First Securities Co.
of Chicago.

No. American Aviation,
Offer Underwritten by

Morgan Stanley Group
American

North

Aviation, Inc.,

is offering its stockholders of rec¬
ord

rights

7

Sept.

subscribe

to

for

1,145,011 shares of capital
stock (par $1> at $38 per share on
the basis of one 'newi share for
each six shares held.

writing

An under¬

headed by Morgan
Stanley & Co. will purchase any
unsubscribed shares upon termin¬
ation of the offer on Sept. 24..
k
The company plans to use the
proceeds for capital expenditures
on
further
expansion
and
for
working capital.
At the end of
the current fiscal year the com¬
group

pany's expansion program will
.required
the
expenditures
of $22,000,000, and it is expected
that a program of similar scale
may continue next year,
f North American Aviation, Inc.,
is a major integrated aircraft com¬
pany which designs, develops and
have

various

manufactures

aircraft

types

of

and

missiles, principally
for .the U. S.: military .services.
The company is presently produc¬
ing F-86 and F-100 jet fighters
for the Air Force and FJ-4 jet
fighters for the Navy and has
various other types of aircraft
under development.
The major
current project"in the missile field,
-

is

the

SM-64

Navaho

strategic

injssile which js now in, the ex41
perimental flight test stage.."The
company

also manufactures elec¬

tromechanical equipment for air¬
craft and missiles, liquid-propellant rocket

engines, and does both
government and private atomic
development work. Organized in
North> American

1928,

has

now

about 69,000 employees with prin¬

cipal

plants

at

Los

Angeles,

Fresno, Santa- Susana, Downey,
and Canoga Park, Calif., and Co¬
lumbus, Ohio.
Total
come

in

sales

net

and

nine

the

other

months

in¬

ended

June

30, 1956 totaled $636,742,000
compared with $580,382,000 in the
same

99%
riods

nine

of

months

these

sales

of

1955.

for

Over

both

was

about

Including

made

$1,268,000,000.

the

initial quarterly




refineries such

as

proved

as

high!

...

each

over

as

400 dif¬

fine and im¬

the ultramodern facilities that make them.

Here, then, is
Cities

giant Cities Service

this, graduates into

ferent Cities Service products

pe¬

directly or in¬
directly to the U. S. Government.
In
these
periods,
net* income
amounted to $22,323,000 in 1956 as
against $23,635,000 in 1955. In the
1955 fiscal year, total sales and
income
aggregated
$818,541,000
and net income was $32,349,000.
At June 30, 1956, the company's
backlog of uncompleted contracts
were

The crude oil that enters the four

one

of the big

reasons

why sales of

Service products have soared to an all-time

■_>

.•

sales increase represents a
under way

But it is far from the only reason.

For this huge

CITIES

I
now

in all phases of Cities Service operation;
v

-v

exploration, production, refining, marketing, and
I

research.
And the end result of this bustling

activity? You'll

be seeing it soon in new and better petroleum

ucts,

V;

dynamic expansion

...

a

new

leader in petroleum progress.

® SERVICE

Progress through Service

prod¬

and bigger sales records for Cities Service

■;.4.

^

V

The Commercial and Financial Chronicle

(1092)

24

Continued from

eral

first page

income

rations

tax

for

rate

corpo¬

38%
while

«»<*> ■>**«■

Methods

Can We Improve

11%, in 1948, it was
(40%
consolidated
rate)
inM955

52%.

48%

was

To

the

stood

differently:

it

put

rate

at

ried down to net in 1955
about

ratio

of

the assumption

a

reasonable in¬

historical

that

facts

terest rate to figure

established.

payments plus the eventual liqui¬
dation payment.

The

enumeration of these

mere

yield

likely to

is

approach

this

that

sufficient to

almost

is

conditions
show

Stock

in

Complicating Factors
Appraisal

un¬

practically

many

although some in¬
teresting attempts have been made
to
work
out such an approach
useful

results,

example "An Approach
Stock Valuation" by Gilbert

(see for

ture."

U.

ings growth

was

a

earn¬

slowed down by

The
actual
picture
conforms
only partly to these expectations,
there

and

The growth performance of the

fifty-four tabulated stocks may be
background of

studied against the

following aggregate corporate
profits in U. S.:

hand

one

stocks
and

the

S. Corporate Profits

Before Inc. Tax

Year

After Inc. Tax

__________

$9,628

$8,259

1948

______

32,769

20,259

____

42,666

there

with

are

of

number

a

records

growth

good

high PxE ratios which

never¬

show—within their

theless

group

relatively

high g.e.p. ratio,
& Haas, Houston
Lighting & Power, Lone Star Ce¬
ment and Reynolds Metals. R.C.A.,
with
a
good
1948-1955 growth
record, is selling at a medium
price-earnings ratio in its group

—a

21,133

1955

quite a few rather
deviations.
On the

are

conspicuous

1929

Rohm

as

of communication
at

electronics, and
ratio.

high g.e.p.

a

<Percentage Increases)

is some
assumption

an

this gives

the tax factor.

there

such

in

ratio;

(In Millions of Dollars)

1929-48

the

On

145%

240%

other

also

and

consequently the past record
of the company is rightly scrutin¬
ized and analyzed as a major
normal source for a reasonable
appraisal of that "foreseeable fu¬
ture.''

was only
corresponding
mere 54%
of

However, the under¬

Normally

likelihood

a

1929

to what extent net

such

lying assumption is that basic in¬
dustrial and managerial trends, as
reflected in the past record of the
company, will tend to continue at
least
into
what is flexibly de¬
scribed as the
"foreseeable fu¬

out the pres¬
ail future dividend

arid

1948

like

be easily

can

ent worth

of

the

of

77%
in

,

metasure

The

net normally car¬

of pretax

the

Thursday, September 13,1956

...

1948-55

In

for

creases

the

all

profit

these

comparing

To

come back

to the question

mediocre

growth appraisal, one might nor¬

there

with

a-

are

rather

postwar growth
show

nevertheless

which

of spective

mally expect stocks with a good

hand,

stocks

low g.e.p. ratio within their re¬

a

corporations with

growth figures for our fiftyone has, however, to

or

record

Deviations from New Ratio

in¬

four stocks

However; when pushed to

some

slow

4

30

...

stocks

groups:

these

Among

Union Carbide &

are

Car¬

bon,' General Electric, Westinghouse Electric, Aluminium, Ltd.,

siiteh projections are bear in mind that the former are growth record — particularly one
H. Palmer, The Analysts Journal, t applied mechanically and without dollar aggregates partly boosted in the postwar era—to sell at high
and U. S. Plywood; the first four
May, 1956,, p. 17). Essentially this due regard to individual circum¬ by the growing number of corpo¬ price-times-earnings ratios and are
also
selling
comparatively
approach forces the financial an¬ stances, which transforms a fi¬ rations, while the latter are based at relatively low
g.e.p.
ratios high on current earnings.
alyst and the investor into the nancial analyst and investor into on per share data, with the growth within their
group, and expect the
There are various reasons why
statistical
automaton. It does usually somewhat diluted through
thankless role of a prophet. Both a
take
more
than common additional equity financing dur- inverse for stocks with a slow stock prices may substantially de¬
the remaining life expectancy of not
viate from the range of appraisal
an
individual company and
its sense to perceive that the past ing the two periods in question. growth record.
prospective earnings and dividend record, while usually important
Growth Record and Recent Market Price of $1.00 (1955) Net Per Share
payments, year by year, are of as a trend indicator, is not always
1948-1955
course dependent on innumerable
a sure guide for the future pros?
% Increase
in P/Share
factors
Increase
political, economic and pects of a company. Any exclu¬
% Increase in
Net Times
Net Per
in Cash
Closing
Price Times 1955
personal—extending into the dis¬ sive appraisal of stocks on their
Recent
Price
Net Plus
Flow
Common Share Earn. (3)
tant future into which no tele¬
past record, tacitly contains a par¬
PxE Ratio
1948-55
1948-55
1929-48
8/9/5C
Depr. & Depl.
Net Earns.
Stock
ticular version of prophecy for the
scope or crystal ball of even the
Chemicals:
best-informed can penetrate. Here future—that of an unqualified ex¬
(6)
(7)
(5)
(4)
,
(3)
(1)
(2)
2.9
20.5x
tension ; of past trends^-and, as Allied Chemical & Dye—
10.9x
are just a few observations illus¬
111%
59%
25%
106%
18.2
6.2
10.1
74
146
112
236
trating this rather obvious point: such, is open to much of the criti¬ American Cyanamid
to

the extreme,

—

•

the ratio

While
rate

of

pretax corpo¬

national income
widely over
the last few decades, the part of
these profits being absorbed by
profits

to

cism

that

leveled

be

can

the initially discussed

against
approach.

Dow

taxation

increased to

has

an

tent that few

people would have

been

to

Rohm

Ratio

With

ex¬

let

us

shifts
of

entire

industries

oil,

versus

relative

importance
coal

versus

copper

or

as

alu¬

such

fifty-four equities usually con¬
sidered "growth stocks," and their
relationship to past growth rec¬
ords

(1955)

levels.

shows,

For this purpose

doubtedly
a

have

which

cannot

clearly

be

yet

as

perceived.
Last but not least, the composi¬
tion and the caliber of a company's

management

change rather
drastically over the long-term in
spite of the fact that both bad and
can

good

managements have a ten¬
dency to perpetuate themselves.
The

dend

future

earnings
of

curves

present

growth
stocks
additional guessing

some

problems:

For

ahead should
sume

such

divi¬

and

how

manv

years

"reasonably"

we

as¬

the earnings of a company
as
Minnesota
Mining and

Manufacturing to remain in their
current uptrend, how many years

thereafter should

we presume the
to remain static, and
then to decay? (Not to mention
the possibility of
alternating dy¬

company

namic and static cycles in a com¬

pany's life.)

I

Even

the comparatively simple
requirement of picking an interest
rate at which all future dividend
payments

and

market

and/or

liquidating values should be dis¬
counted to arrive at their present

worth, is by

no

clear-cut

a

since
to

the

risk

individual

lection of

a

results

means

indication

an

of

element

appraisals.

5%

considerably

from those of

a

6%

than

to be-

tical game.

table

shows

a

formance.
A

approach

is

the

one




456%

68

73%

10.7

18.3

3.7

36

128%

15.2

26.7

1.3

19.1

27.8

2.2

7.8

12.8

5.2

'

as

Oil

Continental

basis.
•••"'

■

•'

'

r

,

Taxes Slow Down Net

.t

,

'

Earnings

Growth

two

periods,

mind

porate

the

one

ought to keep in

sharp increases in

income

cor¬

—__

taxation

In

which

1929, the Fed¬

13.8

9.5

8.0

111

—12

43 %

84

1140

301/2

23

52

58%

8.3

12.2

1.9

373/4

25.9

35.6

2.6

2.5

93

/

11.5

-

4.9

17.0

<

42

174

138 y4

8.8(2)

16.9

42

77

58%

6.9(2)

12.3

3.4

10.9(2)

16.2

4.8-

3.0

199

78

98

58%
523/4

9.1(2)

14.4

63%

7.0(2)

13.3

4.4

493

136%

11.1(2)

28.7

—0.5

131

54%

5.0(2)

9.8

—0.8

550

983/4

8.4(2)

21.7

52

43

246

59

176

38

-15
8

13

84

Oil

-

K

0.6
I

■

11„-

"

Building:

Lone

U. S.

124

-15

80

170

59

Plywood.......

93

65

275

38

Cement

Star

Pittsburgh Plate Glass
U. S. Gypsum

40

111

'

2.61

-27

10.0

15.3

901/2

13.0

18.4

6.7

93%

11.2

14.9

5.4

74

12.9

14.9

4.4

48

80
116

Johns-Manville..

9.3

13.6

2.0

56%

Metals:

1.0

107

31

895

144%

18.5

30.0

141

114

109

131%

20.6

31.5

Reynolds Metals

311

240

130

15.8

24.0

Bethlehem

133

93

154

165%

5.8

9.1

58

21

142

96%

7.2

•10.1

>

40%

12.6

2^.3

v

36%

10.4

57%

15.5

2z.9

D.O

413/g

13.4

20.1

4.7

Aluminium, Ltd
Aluminum

Inland

Co.

of

America

Steel

Steel

82

:tt, 3.6

■

10.0
10.2

2.1

Utilities:

Central & South West

101

45

Gulf States Utilities

135

52

153

Houston

208

115

179

194

95

._

Lighting & Power

Texas Utilities

-

22

:

16.9

>

3.1

<

Retail:

J. C.

Penney

38

._

5

35%

9.2

11.5

3.3

274

93%

14.5

16.7

—0.2

275

33%

13.4

15.5

-

16

bears, Roebuck

236

3
14

62

Federated Dept. Stores

0.9
t)

Aircraft

American

Eastern
United

Airlines

465

56%

280(1)

41%

350
235

262

86"

8.3

33.1
20.0

13.1
I

'...

''
-

6.1

Mfg.

—

Can

Continental Can

Minneapolis-Honeywell
A

number

of

(1)

1949-55;

company

Net

Adjusted

23.2

163

78

48%

9.1

11.4

450

84

23.1

30.5

129

161

41

79%

13.3

18.0

9.0

178

152

810

723/4

27.5

35.2

4.3

99

317

504

19.2

47.4

2.1

25

22

45

9.4

14.8

1.7

42

36

53 %

10.8

16.7

2.5

245

145

288

84%

20.8

28.2

5.1

companies are on
had net deficit in

fiscal
1948.

a

year

all

(3)

...

15.4

15.4

52

Mining &

9.1

93%

51

...

70%

39

200

Minnesota

Glass

200

89

355

Corning Glass

93

176

_

230
151

Machinery & Chem.

Caterpillar Tractor

NOTE:

22.8

11.2

9.1

80%

710

Miscellaneous:

IBM

43.9

12.3

4.7
6

370

United Aircraft

:

10.6

3.6
.

14.7

10.9

5.4

25%

120(1)

Lines.

160(1)

337

Lines

Air
Air

112(1)

Douglas Aircraft

Food

"V

•

Airlines:

and

(2)

have occurred:

;

224

Shell

American

Incidentally, in looking at those

551/s '

58

Owens-Illinois
'

•'

64 y4

66

Phillips Petroleum

General Motors.

1948-1955 period, on a straight an¬

90

84

Texas Co.

'

between the 1929-1948 and the

61

66

72

(N. J.)
Co.
(Calif.)

Oil

Standard

market

recent

glance at the table will show

;

basing
the appraisal
of
stocks
primarily on past growth and earn¬
ings record. For reference mate¬
rial, this approach, deals- with

330

69

Oil

Standard Oil Co.

ex¬

prices of Aug. 9, 1956, as a multi¬
ple of stated earnings (col. 6),
and (because of the already men¬
tioned frequent distortions in such
earnings) also (col. 5) as a mul¬
tiple of 1955 per share cash flow
(that is net plus depreciation and
depletion). Finally, the traditional
price times earnings ratio (col. 6)
has been related to the percentage
growth in per share earnings dur¬
ing the 1948-1955 period (col. 2)
by dividing the latter by the
former.
By relating the postwar
earnings growth rate to the mar¬
ket price of $1.00 of net per share
earnings of 1955, a new growthearnings-price ratio (g.e.p. ratio)
is obtained which very roughly
indicates whether recent earnings
are priced relatively
high or low
in the light of recent growth. This
is interesting since expectations of
foreseeable growth are, at least in
part, based on recent growth per¬

Guide

On the surface at least, the very

opposite

the

7.8

33

Electric

Socony Mobil Oil

by accelerated defense amor¬
tization the percentage increase in
dollar cash flow is also presented
for the period 1948-1955 (col. 1).
As to actual recent appraisal, the

•

Using Past Growth and Earnings

12.5

Oils:

Gulf

tent

nual

As

some

formance of individual companies

interesting statis¬

an

to

industrial group, and considerable
differences
in
the
growth per¬

Therefore, I find it hard
more

distorted

been

se¬

raie.

3.0

26.5

Instruments...—

Beckman

(col. 2 and 3); since net re¬
earnings in recent years

yield
different

The

rate would

21.9

18.2

129
—

Westinghouse

splits, etc.) for each of
1929-1948 and 1948-

wide variations in the rate of per
share earnings growth within each

subject

12.4

j 80

d

CBS

periods

1955

answer

is

43 %

317

Electric

RCA

past

subject to

arithmetical

500

.

Sylvania Electric

ported

occur in the future as
result of technological discover¬
ies and
innovations, many of

66

0.7

100

\

..

General

the table

as

stock

to

the

or

23.3

Electric:

earnings

recent

and

rails versus aviation;
similar important shifts will un¬

minum,

47.3

18.6

170

.'•>

growth, the percentage increases
of per share earnings
(adjusted

the

16.2

215%

253

Union Carbide & Carbon

of

in

.77%

85

'

predict twenty
years ago.
The same holds true
for the extent of the inflationary
rise in
price and profit levels
which has occurred during that
period.
Or take the substantial
willing

540

276

Haas

&

Stauffer Chemical

reservation in mind,
look at the market prices
this

31
182

193

Chemical

Monsanto

Growth - Earnings-Price -

New

A

/

152

145

Chemical.

duPont

has not fluctuated too

plus

property charges.
for stock splits and dividends.

*

»;■»

basis.

3.9
:

'

14.3
14.8

Volume 184

basis

their

of

others

guess,

The
is

record,

basic

most

the

easy

obscure,

valid

and

expectation

an

some

rather

,

The Commercial and Financial Chronicle

..

.

would off-hand expect on

one

to

Number 5568

that

reason

the

com-

pany's prospective record will be
different
such

from

record;

past

(right

expectation

an

wrong)

the

or

be widespread regarding some of the above-named
may

stocks.

Moreover, in

some

cases,

such

as General Electric, there is
scarcity factor of a top-caliber

the

giving broadly diversi-

company

fied

representation in

dustry.

b&Sic in-

a

To
some
extent,
this
factor is known to be
in many equity groups,

scarcity
present
since

institutional

been

concentrating

have

investors

their

equity

investments in "blue chips."

tions of a company's future earnings potential. If and when one
bas
reached
such
estimations,
there still remains the big ques-

To facilitate an appraisal of
growth stocks along the lines suggested, let us consider the earn-

Hon of how to appraise such earnings potential within the bounds
of reason. Are the recent market
quotations of the growth stocks
listed in our table within such
bounds?
Let us start out with the trite
but important fact that the appraisal of all "real" values, in-

five year period: If the cumulative annual growth rate is 8%,
earnings will go up a total of 47%
in five years; if the growth rate
is 10%, the total earnings increase
will be 61%, and if the growth
rate is as high as 12%. earnings
climb 76% in five years,

eluding stocks,

those

,

The

ranges;

already indicated, the pro¬
jection of recent "growth trends
of

a

is only justified to

company

all

for

the extent that available informa-

stocks

tion

Stock Exchange yields fluctuating
around an average range ov151/&%
to 6%, and price-earnings (ratios
pivoting around a center range cf
between roughly 9 to 11 times an-

technological, industrial
managerial
trends
and
plans do not point toward a different business and profit pattern
on

and/or

in the future.

Beside the general
of information from which

sources

such

indications

there

is

tion,

namely

plans

and

be derived,

may

that

is

gaining ever
increasing importance and attenone

the

longer-range
projections made by

corporate managements.
It is a
sign of greater maturity of busi-

leadership that, in contrast
times, periodically revised, longer-range plans for research and development, capital
ness

former

to

outlays and financing, as well as
marketing are becoming a matter of course in a well-managed
company. The customary forward
of such

range

compass

planning may enperiod of three to five

a

sometimes supplemented by
tentative
and
incomplete plans

years,

going beyond that period. Such
planning is facilitated by the rising number of labor contracts
running for two to five years. On

listed

dividend-paying

istics.

planning

son

or

another,

stock elite

The

now.

cease

one

least

projections

tentative
of

becomes clear that

this

to belong to

the range of about

cally beyond

comparatively mild and thus

tries to look ahead beyond

decade ahead have already

a

been mentioned.

the investor

As

a

lim-

some

basic
years,

substantial premium for possible

(Special to The Financial Chronicle)

managements
still show reluctance to give out

growth beyond such a period of

DENVER, Colo. — William M.
Crutcher,
John
W,
Deal
and
kigene A. Vallow have joined the

years,

one

easily

can

wander off into the prophet won-

derland

since

fundamental

nological, economic, and
ial

elements

changes

manager-

subject to

are

over

period

a

tech-

of

corporate

Many

information

their

on

planning in such

forward

form as to enable the financial analyst to draw
conclusions

valid

peetive sales and
the

a

company.

for

the

profit

pros-

of
there is

range

However,

clearly

a
trend toward making
information more generally

such

available,
least

either

individually

publicly, or at
on a confiden-

such

When

from

information

Taking

rough yardstick, of about 10 to 12
times average earnings as a longterm, m i d d 1 e-of-the-road
appraisal for a
good-grade nongrowth stock, the prudent investor
would probably stay within reason
in
buying a high caliber
growth stock now at a price
rovghtly equal to 12 to 14 times

management it deserves prime at¬
tention in

appraising

an

equity.

Planning
seems

tions

to me

that the limita-

ally

accepted frw competent cor¬
porate managements deserve rec¬
ognition also by financial analysts
and

investors

in

ments

primarily
1 for
a

prospects

stock invest¬
in the light ofr
more
limited,

be

which

3,800,000

one

should

of

Allen

Investment

not

be

stocks,

which

should,

of

NEW

I.

MILWAUKEE 1,

>.v:"

;

v'

■

.

N otice of

a

LONDON,

Small

with

^
the provisions

NOTICE IS HEREBY GIVEN that, pursuant to

and to Resolutions of the Board of Directors of said Com¬
all of the outstanding shares of 3J4% Cumulative Convertible

:

said

for

Preferred

should

Stock

be

-

surrendered

to

Guaranty Trust Company of New York, Redemption Agent, Corp¬
orate Trust Division,
140 Broadway, New York 15, N. Y., on or
after September 28, 1956, and upon the surrender thereof ;the holder's
will receive payment at the rate aforesaid for the shares called arid
so surrendered for redemption.
In the event payment is to be made
to
someone
other than the registered holder of a certificate sur¬
rendered for redemption, such certificate should be endorsed in blank
with the signature guaranteed by a bank or trust company having
an
office or correspondent in the City of New York, or by a firm
having membership on the New York Stock Exchange or in the
American Stock Exchange Clearing Corporation, and appropriate
transfer tax stamps should be affixed to said certificate when sur¬
rendered..'^:each share of

called

for

on the

basis

common

of

3U% cumulative convertible preferred stock

redemption

stock

for

right of conversion

each

of

into common stock

be converted

may

common stock (4 shares

of $25. per share of the

share

stock). the
called for re¬

preferred

of

preferred

such

stock

demption will terminate at the close of business on the re¬

september 28, 1956, and is subject to all rights

demption date,

desire to convert their shares into com¬
may do so by surrendering such certificates at the
of guaranty trust company of new york, corporate
division, 140 broadway, new york 15, n. y., at any time
the close of business on september 28, 19s6, duly en¬

has

Sheffield

to

dorsed and
thereof

connected

325

Co.,

State

ATLANTA,

course,

to

the

convert

into

same

a

stock

and

issued.

or

Preferred Stock will be
on

permanently

September 28, 1956, and

no trans¬

conversions will thereafter be made.

The

Company will deposit in trust with Guaranty Trust Com¬
of New York prior to the redemption date, the redemption
price of the shares called for redemption, and all rights with respect
to said Preferred Stock so called for redemption shall forthwith at

pany

Ga.

—

Margaret I.

of the

business on the redemption date cease and terminate,
only the right of the holder to receive the redemption price
shares so called for redemption, without interest.

Information as to the provisions of such redemption may, upon
inquiry, be obtained at the office of the Cornpany, Milwaukee 1,
Wisconsin, or at the above-mentioned office of Guaranty Trust Com¬
pany of New York.
'
" V.
<,

ALUS-CHALMERS MANUFACTURING COMPANY
By: W. E. HAWKINSON

Co., Inc., 849 Peachtree St., N. E.
as a

common

the close of

Bess, William H. Hanselman, Mary
M. Levy and James R. McHugh,
Jr. are now with King Merrit &

growth

by written notice that the holders

accompanied

elect

stating the name or names in which the common stock certif¬

fers

j

Conn. —Edith

become
&

up

closed at the close of business

With King Merritt

Current Price

Vice President and Secretary

Multiple of Est. 1960 Earns.,

IMPORTANT

Cumul. Annual Growth Rate of

8% *

10%*

12%*

10.2

15

*

Redemption of

'

The transfer books for said

(Special to The Financial Chronicle)

dog-

Assuming

be¬

Company

WISCONSIN
"A.'

August 21, 1956.

1955 Earnings

have

31/4% Cumulative Convertible Preferred Stock, $100 Par Value t

icates are to be

as a

Multiple of

Smith

vestors, Inc., U. S. National Bank
Building, Mile High Center.
i

Allis-Chalmers Manufacturing

trust

Street.

be taken into consideration.
Current Price

H.

connected with United In->

i

office
'

Co.,

(Special to The Financial Chronicle)

great differences

are

as

William

come

has grown
to an esti¬
of April, 1955.

mon stock,

Sheffield Adds to Staff

suggesting even such a broad
.range for the appraisal of growth
There

DENVER, Colo.—Conrad Dublin
and

and Terms as provided, holders of said preferred stock called

attained

(Mile High Center,

In

matic.

(Special to The Financial Chronicle)

9.3

8.5

holders should

before

surrendering

certificates

for

redemption,

stock-

carefully consider the market value of the

10.8

16
17

-

9.9

9.0

common stock

11.5

10.6

9.6

10.2

convertible, since it may be to the advantage of the stock¬
holders to convert rather than redeem their shares. stock¬

into which

the shares of

the

18

12.2

11.2

past achievements and
management
planning,

19

12.9

11.8

10.8

holders may wish to consult with their

20

13.6

12.4

11.4

21

14.2

13.0

11.9

preferred stock are

in this connection.

help financial analysis steer

partly foreseeable future,
basis

of

current

will

staff

Appraisals Cannot Be Dogmatic

the

evaluating

Appraising

future.

to

Three With Allen Inv.

1961 earnings.

in the caliber of individual

of forward planning gener-

mated

Joins United Inv.

\

served by the company
from 2,725,000 in 1950

except

stocks

Limitations in Weighing Forward

It

or

of Securities, Inc., Farmer's Union.
Building.

is

Edison

for redemption, who

above-mentioned,

our

unlikelv

comes

competent and trustworthy

a

rates over the coming years

"me*

prospective 1960

tial basis.

market

are

(Special to The Financial Chronicle)

DENVER, Colo. — William L.
Novak, Susan P. Vitt and Hugh
M. Warner have joined the staff

the
with its
by

■

Generally speaking, beware of
prices which, according to
these yardsticks, postulate growth

about five

California

Certificates

ited time range, the risks of simply projecting growth trends increase rapidly. Consequently, the
prudent investor should not rely
too much on the continuation of a
company's growth beyond the five
or
six years' horizon of semivisibility, and should not pay any

large extent,
managements feel that, in
going much beyond a period of

Most

connection

Three With Sees. Inc.

of

said Company have been called for redemption
September 28, 1956 at the redemption price of $103. per share,
plus an amount equal to accrued dividends thereon from September
5, 1956 to and including September 28, 1956 in the amount of 21
cents
per share.
i: ,-C / V

tend through the sixties—which
of course is highly hypotheticalthis stock A would now sell at
10 times 1968 earnings! This looks
like an imprudent over-reliance
on long-term v growth—though it
might prove right in retrospective,

difficulties in
projecting specifi-

great

and

used

be

year

on

currently priced above the
range at which a prudent investor
would wish to. buy them.
Here,

few years from

a

net

$3.23

or

calendar

Preferred Stock of

earn-

type, it
of them

are

rea-

and

per

the sale

cluding the City of Los Angeles.
The population of the territory

pany,

is selling at 20 to 22 times tentatively projected 1960 earnings; if
the same growth rate would ex-

for

may,

$48.50

in generating, purchas¬
ing, transmitting, distributing and
selling electric energy in central
and southern California, not in¬

pany,

known

are

Some of yesterday's and today's

stocks

with

$176,580,381
$29,628,919,

Incorporation, and the| Certificate Setting Forth
Designation and Certain of the Terms of the 3]4% Cumulative
Convertible Preferred Stock of Allis-Chalmers Manufacturing Com¬

a—whose
stock . was
recently
priced at nearly 35 times 1955
earnings; at this level, the stock

growth

in

stock

common

at

of

the

for Instance, is a leading growth
company—let us call it Company

half

be disconsidered to a

at

will

stock

Southern

Conclusion

sufficient data

make

com¬

share for the

per

engaged

rough yardsticks are
applied to those growth stocks for

ings

of

$31,169,793,

compares

This

share of

of the Certificate of

A Possible

to

Co.

$25)

Proceeds from

company

these

which

revenues

continuing expansion program. |

a meas-

is usually done on the assumption
that cyclical swings will remain
can

this

earnings,

If

<

planning

the bulk of such forward

i960

Edison

value

share.

earnings

the

1955.

(par

of relativity in such appraisals, where does this leave the
evaluation of arowth stocks?
»

With due awareness of

such

consequently,

York

creasing public awareness of a
long-term trend toward inflation,
and in the face of justified hopes
that cyclical fluctuations may no
longer reach catastrophic proportions, it may very well be that
stock prices will tend to gravitate
around moderately lower yields
and slightly higher : price-earnings ratios. Along these lines, a
price of 10 to 12 times average
earnings may seem reasonable in
our (optimistic) era for a goodgrade
industrial
stock
lacking
above-average growth character-

this

and

New

In view of the in-

nual earnings.

the other hand, the business cycle
cannot
be
safely predicted for

periods,

the

on

stock.

mon

income

fornia

on

from 15 to 27, are of
corollary of current
market prltes of 15 to 27 for the
stock; in the next three columns,
the
relationship of these same
current market prices to projected
1960 earnings is shown, assuming
a five year earnings growth at the
rateS of 8%, 10% and 12% respectively. As can be seen, for instance, a stock now selling at a
multiple of 20 times 1955 earnings,
is priced at 13.6 times projected
iggo earnings, after an 8% annual
earnings growth; if the growth
rate were to be 12%, the stock, at
the same price, would
now
be^
selling at
11.4
times projected

appraisal of stocks,

Sh.

a

Co., yesterday (Sept. 12) offered
500,000 shares of Southern Cali¬

the

course

Long-term historical records in-

dicate

cumulative

«d,tnet $3.43 per
.income
equal to

group headed by The First
Boston Corp. and Dean Witter &

ranging

■t Forecasts Higher Price-Earnings
Ratio

As

.

..

A

increases
over
a
five year period,
Assuming—for the sake of simplicity—1955
to
have
earnings
been $1.00 per share, the 1955
earnings multiples in column 1

Extending Forward Investment
Plans

following table is based

revenues of

$186,314,110

Edison Co. Common

Stock at $48.58

operating

25

company for the 12 months ended
June 30, 1956 were

a

apart from basic political, economic
and
corporate
changes,
fluctuations in the climate of publie psychology will of course influence prices. This precludes any
narrow cut and dried formula for
"correct"

Total

Southern California

ings increase of such stocks within

has always been

fluid within rather wide

the

v,-

(1093)

clear

of

prophecies

stantiated,
ography.
Much

on

the

right

of

conversion

ceases

at

own bank or broker

the

close

of

business

of this
the

22

14.9

13.6

12.5

on september 28,

23

15.6

14.2

13.0

convert their shares into common stock MUST deposit such

of sterile histori¬

24

16.3

14.8

13.6

preferred

17.0

15.4

14.2

of

discussion has fo¬

26

17.6

16.1

14.7

type

27

18.3

16.7

15.3

two

that
and

of

sub¬

25

the

extremes

cannot

cused

on

which

primarily to

of

base




be

data

or»

estima-

*ResuIting hi

a

total earnings increase

,

of 4<%* 61%, and 76%, respectively.

stock

1956, and holders of certificates desiring to
certificates

new york, conversion
that day.

with

guaranty

trust company

agent, before the close of business

26

Continued

from

the

4

page

particular object, like one im¬
being."

mortal

From

lifetime of ob¬

adult

an

hesitation in
testifying, not to material achieve¬

Miracle of American Wealth

servation, I make no

ments which all may see,

Due to
to

takes

business

use

as

People's Capitalism
whip¬

a

ping boy for political aggrandize¬
ment
may
find his public life

shortened.

abruptly

assault

ranted

An unwar¬
business«I no

upon

longer carries the "soak the rich"
appeal of 25 years ago. It is a
direct attack upon a portion

savings

possible

110,000,000

of

of the

ness

in
an

prospectus which must
be
delivered
to
the
purchaser.
The Commission is not required

and, I think, the obligation to so
counsel clients that this example
of constructive intelligence
will

lished in

a

to approve

States

United

the

example

the

for

which
world.

have the opportunity

You lawyers

Anyone can

to purchase.
the

from

facts

pro¬

a

spectus, but if he is, in doubt, he
consult any representative of

can

member firm of the New York

>':■

a

member of the

Stock Exchange, a

the

banker.

,

''k

v

extend

shareowners.

common
'■

v"

Eliminate Double Taxation of

,

Dividends

'Let's look at what this corporate
burden
does
to
the
share-

tax

Not

owner.

only does his

corpora¬

tion pay income taxes of perhaps
52 cents out of a dollar of earn¬

ings but when the shareowner
ceives

other income tax

his

at

that dividend

on

personal tax

double-taxation
come,

re¬

dividend he must pay an¬

a

pure

This is

rate.
the

same

in¬

and simple.

It is

re¬

on

lieved

only modestly by the $50
exemption
now
permitted.
In

anybody's book double-taxation is
unjust and we have got to find the
means
of
finally
correcting
it.
Studies of the results of its elim¬
ination

indicate

that

the

Federal

loss would not be

revenue

signifi¬
cant and that the larger national
income resulting from increased
dividends

could

be

economically

history

as far as has it. But the same sum, scattered
the Romans, our in 10s and 50s through a whole
earliest tangible evidence emerges nation has no power at all; no one
late in the sixteenth century, in knows where to find it or whom
the form of Dutch, British and to ask for it."
French
Even then he said, "We have
exploration and trading
companies.
J'
entirely lost the idea that any
In the early settlement of North undertaking like to pay, and seen
America,
repeated * failures
by to be likely, can perish for want
partnerships composed of a few of money; yet no idea was more
rich noblemen caused the British familiar to our ancestors. A place
like Lombard Street (then com¬
to
adopt crude joint-stock com¬
panies as colonization vehicles. parable to our Wall Street finan¬
These organizations made it pos¬ cial district), where in all but the
sible to attract more partners and rarest times money can always be
provide greater financial backing." obtained upon good securities or
As a result, the first permanent upon decent prospects of probable
European settlement in this coun¬ gain, is a luxury which no country
try at Jamestown in 1607 was es¬ has ever enj oyed with even com¬
<
tablished
by the London Com¬ parable quality before."
I doubt that Bagehot could have
pany. The capital of another early
imagined accumulating the stu¬
corporation, the Plymouth Com¬
required to fi¬
pany, chartered in 1620, provided pendous capital

which
New

The word "securities" is

a

gen¬

term used in the brokerage
underwriting business to in¬

initial

the

for

expenses

in

resulted

our

Men

one

"stocks"

of

a

stocks

and

"bonds''

North

is

ownership

corporation while bonds

resent

tion

represent

debt

owed by
government.

or

a

rep¬

corpora¬

America

has

been

a

comprehensive study of
subject should obtain
the

more

this

liarly

Meeker

most
ment

it

found

fitting,„ therefore,
rapid
as

and

fullest

pecu¬

that

its

develop¬

mechanism for conduct¬

a

Invest."

ing business should have occurred

prepared by Merrill Lynch,
Pierce, Fenner & Beane for use by

in the United States. It has entered

booklet entitled
It

"How

to

was

individuals, schools and colleges.

more

deeply into

contributed

Since
Act of

Regulatory
of the

passage

Acts

I

Securities

1933, fewer fraudulent

se¬

as

like

to

persons,

juristic

history and

our

to

more

being than in
Federal

well

other nation.

any

think

our

of

corporations

as in truth they are
endowed
with
personalities reflecting

persons,

curities have

been

result of the

Securities Exchange

the

Act

of

the

and

"tipster"

stockholders and managements. In
this
perspective one can judge

1934,

of business.

out,

are

"pool

and,

as

a

operator"

substantially out

I would like to

however,

prevent

sold

that

dishonesty

no

it

point

law

can

only
after conviction.
Ingeni¬
crooks, counselled by mis¬
guided or unprincipled lawyers,
—

can

punish
ous

still

break

down

barriers and take

investor's
of both

money.

best legal
heavy toll of the
our

Administration

Federal acts

is

under the

Securities and Exchange Commis¬
sion
which
performs
salutary

services
tors

for

business

and

inves¬

alike.

The
known

Federal
as

a

Securities

"full

Act

disclosure"




is

law

?

lived

finance, created and de¬
stroyed
market
places,
shifted
routes of trade and commerce and

profoundly
beliefs and

individual

attributes

composite

their actions

individuals
entities

as

of

their

he would those of

rather

than

of

legal

only.

classical

in

1819

definition

poration is

visible,

tend

tiny electronic instrument called
transistor.
'r

Supersonic Growth of Plants

an

rendered

that:

"A

the
cor¬

artificial being, in¬

intangible

existing
only in contemplation of law." But
and

the

security of

morals,

many

na¬

it

strides,

you to
10 years since

his

and

son

made

their

famous

experiments, the study of
electricity was already 150 years
old. And yet, it was another 150
years

before electric

power

came

into general use. Compare that to
the speed in this Age of Research
Nuclear

and

first

structed
have

Physics!

atomic

reactor

Since
was

the
con¬

in

1942, so many models
been
designed that some

became obsolete before they could
be
built.
The
airplane has de¬

and such services

the

product

and

of

electronics,
others new
production horizons

and

many

development
largely
western

to

was

the

once

eastern

industrial

and

confined
and

mid-

financial

in plant engi¬
neering and finance has removed
he
also
said
it
possessed
"im¬ most
geographical
barriers.
In
mortality" and "individuality" by Dallas, for example,
Chance
which "a perpetual succession of Vought Aircraft Incorporated has
developed and is manufacturing
many persons are considered the
the fastest naval day fighter in the
same
and
may
act as a singlt
world, the great Crusader; Temco
individual" for the "promotion of Aircraft
Corporation engineered
centers,

progress

information

-in

em¬

ployment of surplus funds.
Since investors
shackle

not

do

to

care

in unmarketable
stocks and bonds, they must know
where and by what convenient
process securities can be bought
and sold. The principal market
places for securities are the or¬
ganized stock, exchanges and the

.

money

unlisted

securities

latter is

a

The

market.

market conducted be¬

,

brokers

tween

dealers

and

throughout the nation in securities
that

not listed

are

on

stock

a

ex¬

change. Numerically, it is the
largest market. However, the stock
exchanges bear away the palm fn
worldwide significance. The great¬

only sources of such gigantic sums

est of these is the New York Stock

of money, it naturally follows that
while investors. increase numer¬

Exchange; it is the pattern for all
stock exchanges in our nation.

ically,

average
amount in¬
securities
will
also

the

vested

in

increase.

Development of Market
Let

'(
Keith Funstdn, President of the
N.
Y. Stock Exchange, believes
,

Places

look at the evolution of

us

.

market
the

places and specifically of
York Stock Exchange;

New

middle- f and upper-income • how it meets the investor's needs
Americans—the prime source of and performs services of trans¬
I
individual investment funds—have cendent economic importance.
that

In
Egypt, market places for
remarkably in number
can; furnish the neces- - goods were familiar before the
dawn of written history. In Im¬
sary equity nioney for this ex-*
perial Rome and perhaps earlier
pansion — perhaps $60.0 billion

grown so
that they

from liquid personal savings

with¬ in Athens, the purchase and sale

disrupting their spending
habits. He estimates that by 1965
out

will

there

be

American

of

third

striking

a

families

our

•

income

money

were

con¬

Middle

the

•

lending and dealings of
kinds were handled. From
these lose fairs Europe's leading
exchanges evolved.
.;,
As
civilization
grew,
greater
specialization
in
markets
de¬
veloped;
for
example,
textiles
being traded in one place and

-

foodstuffs

many

the

To

taxes.

and

In

money

some

19,000,000 of them—will have in¬
comes
of $7,000 or more before
Federal

debts

Ages
wandering
and
periodic
fairs
served as market places where

one-

—

of

ducted.;

new

almost

market:

.

■

miracle of

mass

sion—that of
added

be

investment—to

mass

the

to

American

nomic fabric. This

new

eco-

will

lesson

learned

that

One

Americans

is

hard

the

want

their

about

more

securities

to

business

is

accomplished

being

securities ^industry itself.
The New York Stock Exchange,
the

by

National

the

curities

Association

"

Dealers,

and other stock

sociations

Se¬

of

America

of

exchanges and

representing

as¬

brokers,
of

andunderwriters

dealers

se¬

curities, plus their members acting
independently, have led this pro¬
(

,

f

(

Merrill

Lynch's

Educational

is

to

Beane,

the " individual

is

say

that

leader

distribution

geographical
offices

116

in

in

the

United

of our
States,

Canada, Cuba, Puerto Rico, Swit¬
zerland and our representatives in
other

we

and
people

countries

European

Mexico,

protective

reach

governing
They are
the safest, most efficient and
regulations

now

democratic form of market known.
York

New

was

more

founded

by the

Dutch in 1623, not as a

haven from
political or religious persecution,
but
as
a
trading post. Market
places
for
goods
and
services
existed

from the first,

but it was
that the first
organized securities market in the
United States appeared. A group
May

on

17,

1792,

"Brokers

24

Sale

an

agreement

among

rates

.to

commission.

beginning

securities

form of

From

the

grew

market

The Exchange
of

signed
business

do

York Stock Exchange,

our

Purchase

Stock"

themselves and stipulating

of

small

the

for

of Public

and

Lynch, Pierce,
pioneered and

Merrill

&

Fenner
now

immodest

not

firm,

my

Thus

market.

the conduct of business.

of

Program
It

individual

own

sale of se¬
curities became important, stock
exchanges were established.
Though at first consisting of
small groups congregating at con¬
venient locations, stock exchanges
gradually became organized and
surrounded their operations with

iln vestment

Association

Bankers

gram.

.a

when the purchase and

gresses.

know

When

another.

-

develop, only as. rapidly
painstaking public education pro-, its

way

in

product dominated a general mar¬
as: ket, it tended to break off info

dimension

financial education. Because of the

opened constantly.

Whereas industrial research and

reliable

provide

living standards of*; a population
growing so rapidly that it is ex¬
pected to exceed 230,000,000 souls
by
1975,
-the
forest
becomes
separated from the trees, so to
speak. About $150 billion of this
plant expenditure cannot be pro¬
vided by corporate savings and
must come from the sale of se¬
curities. Since our people and fi¬
nancial institutions represent the

so
rapidly that airlines
frequently seek new capital
to purchase modern flying equip¬

the fields

asking.

the selection of securities for

$360.0 billion for more new plants
and tools. When accelerated re¬
search is coupled with the rising

veloped

chemistry

available for

are

The objective is to
remove any mystery from the art
of
successful
investing and to

the end of 1965, corpora¬
must, raise
an
additional

must

ment. In

investment

and

high schools and in¬
higher learning. We
spend about $1,300,000 annually on
advertising and other programs,
stitutions of

that by

tions

Executives

in

courses

sell

tq

Our Part¬

ago.

Account

finance

conduct

tomorrow's
products, industry must build to¬
morrow's plants./It; is estimated
order

In

time

some

before hundreds of clubs
and other organizations yearly and

continues.

pace

afternoon

and women
evening

men

three-session

speak

II, United States in¬

War

World

seven-league

interest

may

in the

that

know

such

of

Because

1,200

a

and

ners

institutions; that with knowledge
comes understanding and partici¬

kite

and

course

Tools

And

of

series

conducted

five-session

a

course

attended

Our earlier progress was slow
by present standards—indeed, it is pation. The best public relations
said that when Benjamin Franklin and education job in business and

are

It is true that Chief Justice John

Marshall

affected

tions.

ex¬

plored, colonized and developed
by stock
corporations from its
earliest history. The economist J.
Edward

Those of you who are interested
in

have

formed

■

that

active

'

labor-

governments. The basic difference
between

still

through this whole marvelous eco¬
period which has -raised
share each and additional shares nomic
were
sold to them• at £10 each new standards of living,
trans¬
allotted

were

in, of all things, a subsidiary of
the Plymouth Company. Perhaps
clude the common and preferred
this (indicates
that the holding
stocks
of
corporations and the
bonds issued by corporations and company is not so new as some
may have been led to believe.

and

a

most

our

a

courses

throughout the country. In Dallas,
for example, some 500 women at¬

largest new industries in its field
has been built for manufacturing

a

of

is

programs

investment

Inc., one of the

Texas Instruments,

One

courses.

popular

production, mass:
the
American
industrial marketing and mass consumption, !
venture nance
Mr. Funston expects a new dimen- present. plant from 1878 to the present day.

England states. The Pilgrim

Fathers

important.
eral

in

back

the collegium of

•

nance

nation-wide competition, while at

'r': "

province of the investment
His principal function is
National Association of Securities locating widely scattered sums in
business and investment must be Dealers, his banker or an invest¬ the hands of many willing lenders
ment counsellor. ' Unfortunately, or investors and pooling them into
attuned to reality and not dematoo many people still envision a great capital fundg for use, by
goguery or political expediency.
a n d
governments.
In this connection I want to di¬ pot of gold or a uranium mine in corporations
a prospectus which clearly states
Economists \ call
this
operation
gress long enough to indicate a
it isn't there.
Investors should "capital formation."
gross inequity in the Federal in¬
work as diligently
Illustrative
of
the
economic
at investing
come tax law.
A study of 20 large
their money as at earning it.
In value of many small sums formed
corporations covering the past 10
into great capital aggregations for
years shows that Uncle Sam col¬ this, the motto of my firm, "In¬
constructive use is the statement
lected $18,591,600,000
in income vestigate then Invest" is truly
of the English economist Walter
taxes. By comparison, those same worth remembering.
Bagehot in his history of the Lon¬
corporations were able to pay
The Corporation's Role in America don
% financial
district
entitled
their shareholders—those who had
Perhaps it will be profitable to "Lombard Street" Written in 1878:
invested their savings in and actu¬
think
momentarily
about
the •J "A million in the hands of a
ally owned these companies —
nature and economic importance single banker is a great power; he
only $11,510,100,000.
In
other
of
corporations
which are, of can at once loan it where he will,
words, the tax collector's bite was
and borrowers can come to him,
61.5%
greater
than
the
total course, the source of corporation
securities. Although its roots may because they know or believe he
amount of cash dividends paid to
ever

in

.

The

ascertain

school, college and university fi¬

is building a Navy jet train¬

and

ing plane which won its wings

dustry has invested in new plants
and equipment the titanic amount
of $232.6 billion. That sum is al¬
Function
most $14.0 billion more than was
.Underwriting and distributing
spent on plants and equipment in
securities which provide capital
the entire preceding 46 years of
for the initiation and expansion of
this century. And this supersonic
the larger corporate bodies are in

^
ior disapprove a secu¬ continue.
h:*■:
•! ■'> '(»'•
investor himself must
determine whether the security is The Investment Banking

rity.

proper

economically mature than
before, who may well resent
rabble - rousing
pronouncements.
The
making of
laws
affecting

present morality and beneficence
toward employees and csutomers
in the conduct of corporation busi¬
sets

by the object of such an assault.
He will be talking to a public
more

but to a

requiring that all material facts
regarding a company and the new
securities it offers for sale be pub¬

voters invested in securities issued

their

Financial Chronicle... Thursday, September 13,1956

The Commercial and

(1094)

in

that

New

the greatest
the

world.

old as
government. Article 1
is almost

its Constitution

as

states

its pur¬

pose:

"Its

object

shall be

to

furnish

have

exchange rooms and other facili¬

published hundreds of advertise¬

ties for the convenient transaction

than

any

ments and

other

firm.

distributed millions of

booklets and pamphlets
financial
Some
as

We

education

of these

are

supplementary

containing

information.

regularly used

texts

in

high

of their business by
to

maintain

commercial

high
honor

its members;
standards of
and
integrity

its members, and to pro¬
mote and inculcate just and equiamong

Volume

184

Number 5568

The Commercial and Financial Chronicle

..

.

1

table

(1095)

standardized yields resulting from

be

public appraisal of values.

principles of trade and busi¬

sellors.

ness."
and

Operations of N.Y.S.E.

exchanges do not partici¬
directly in the financing of

by

prepared

services

These

Stock
Form

able

the

to

qualified
often

are

coun¬

valu¬

Stock
Exchanges are
limited
membership organizations; for ex¬
ample, the New York Stock Ex¬
change
has
1,366
members.
A

business; that is not their function;
Some ill-informed and misguided
critics

estates and other fiduciaries. Our

prospective
new
member
must
first acquire an existing member¬
ship Or "seat" relinquished by a
retiring member, successfully
undergo the most careful personal
and financial scrutiny and be ac¬
ceptable to the other members.
Transactions on the exchange are

Securities Salesman's Corner

profession, so
frequently called upon to set up
and sometimes administer trusts,

pate

have

claimed

they "play

a

legal

By JOHN DUTTON

value

of

these fiduciaries

at

establish the

middle-man's part of no economic

ability

significance.

These critics are in
chaos would result
from
permanent closing of our
exchanges.
Its
direct
effects
would be felt from the top to the

securities

great, error;

given dates and of assj sting in ef¬
fecting transfer from one name to
another relieves many complex¬

bottom

of

picture.

the

world's

economic

Central marketplaces

essential

all

to

segments

of

are
na¬

ities.;

to

for

Effective
The

Stock

endorse it wholeheartedly.
Any
man who follows this outline as

available

offers
and

to

security dealers and

a

suggestions for advertising

in

Mutual Fund

merchandising

on

''auction"

determined when the lowest offer

and the highest bid are equal and
a; transaction
results. Normally,
the number of shares and price of
each trade

flashed

are

on

tickers

throughout the nation and in some
foreign countries within a few
minutes

the

after

summated.

con¬

from

to

moment

what the last sale price

moment

A

was.

is

Thus, everyone inter¬

knows

ested

trade

broker

also ascertain

can

the

existing "bid" and "asked"
prices; for example, let us say the
last sale on General Electric was
share. A customer may ask
a "auote" before entering an
order/ He would normally learn
$63
for

per

in

about

minutes

two

that

the

62% and the low¬
est offer
63 %, a difference of
one-quarter or 25c per share. In
less active securities the spread is
likely to be somewhat wider.
highest bid

was

Quotations

in

are

dollars

per

share and multiples of one-eighth
of

a

dollar.

Economic

Functions

Brifel.y, some of the economic
functions of the New York Stock

Exchange are:
(a) Increased safety of dealings

through restricted, regulated ex¬
change membership, auction typa
markets, financial responsibility
and wide

publicity of prices.

Superior marketability by
of purchase and sale
a central market place,
where buyer and seller may meet
(b)

direction

orders to

upon

equal terms.

| (c)

open markets
everyone alike, un-

and

Free

available

to

by any single man,
class, reflecting public
supply and demand for securities.
dpminated

group

or

questionnaires
answered
every
year, one of which is based upon a
surprise audit by independent;
public accountants.
In addition,
spot checks of books and records
are made periodically to see that
.Exchange, Federal and State reg¬
ulations- ar e ' being
bbserved.
Liabilities

as

underwriters of

se¬

curities must be reported weekly
and
the

any
firm

be

must

borrowings

or
individual

or

disclosed.

loans by

partners
For the past

"Some dan

you'll be

that's

"And

"

~

'

^

the

of

monthly

accounts

their

and

condition
must be

of

it

why

Where?

the goods made.

Investors want sound answers to
the

questions of What?
Why?
When?' And How? their

funds can be gainfully
(e)
Increased
availability of employed. • Those who entertain
capital for investment by the "get rich quick" aspirations should
ability td change investments at avoid securities.; Investing is not
will; to permit the flow of capital a science measurable by a slide
industries which

out of

surplus

no

longer

require

it into expanding indus¬

tries.

■

'

rule; it is

.

t

happened to

s&;V'-BV: 1948—.::

v

:

'W?

-

1000y'>jY

-r

curities

an

inexact art.

trained

Research'

for

funds

and

the

added to

The

construction

purposes,

balance, if any, will be
general corporate funds.

new

York

change requirements of quarterly

Stock

Firms,

reports from listed companies.

Facilitating

ment of consistent

the

establish¬

not

Exchange

of

and

New

Member

unlike the legal pro¬

fession, offer upon request coun¬
sel

and

advice in

the investment

prices for capi¬

and credit b,y affording ready
comparison through relatively

tal




field.

cal

Portfolios to fit any practi¬

investment

requirement

Today it takes between $10,000
and $12,000 to finance four years

will

„i'

redemption prices

Gulf

States

Utilities

Co.

is

include:

group

Bear,

Stearns

&

Fahnestock

&

Goodbody

Co.;

&

Co.; H. Hentz & Co.; Stern Broth¬
& Co.; First of Michigan Cor¬
poration; Arthur M. Krensky &

ers

Co., Inc.

SAN FRANCISCO,
liam H. Magruder

I'd be glad
whv
'

has been added

Street,

the New York and

Stock

tell

"Please
am ;

when

hear the de-

like to

would

Exchanges.

Co., 404

members

of

San Francisco

the card I
and/where

on

me,

enclosing,

you

tails."

.

,

fC!ine Jnn
the

of
It

story

the
f

is

an

entitled

brochure

"Is Inflation Normal?" It is

concisely

.

available

currently

en velone-size

and

simply
of the

the counterbal-

illustrates

stock

of

trend

upward

ancing

to

promote

better

for
dren

o

growth?"
is

a

this

*

.

Amyas Ames

'

J3f o lives in
? *t

s

w

a

vaa

t»

Harbor, L.X, joined Kidder, Pea?°'
!)e<iame a
3i f°rmer
at

£
of

v

£r0_Up
Asso¬

T

the Investment Bankers

y

,

In its four

years,

Committee

zens

former

a

'■

■

i>200

New

help

gef.

York
better

Stock
'

■

the State Citithe

for

Schools has worked with

Public

than

more

communities
schools.

to
has

It

stimulate greater citizen
interest in school welfare and fostered the kind of local-level, long-

pianning that gives effec-

range

answers to teacher shortages,

student

greater chance for profits or

It

chil¬
f

b "e:

the alternative tive
you think offers

BSrue-S uan• offers
Which risk do
the

schools

all

pUrC^Qm?^ P°wer helped

f oliar fronJ 1895 to

also

Public

Schools,
a
non-profit organization

Governor of the New York

..

+1

Also

Committee for
the

Exchange.

Excellent Brochure

an

;the

State, Citizens

ciation of America, and

Sincerely
Also

/

.

well designed and clev-

increases

and

inadequate

facilities.

The Committee's members volUnteer

their

services

all

to

com-

erly illustrated pamphlet that can
o f^^pd
a newspaper adver-

mUnities in the state interested in

tisement, with direct mail, or included in monthly statements. It
is effective because it is a direct

cities

are

iems

Because the Committee

and clearlv stated

presentation of
depreciated

have

dollars

bow

steadily over the longer term, and

understand it without

can

anyone

iearnjng

ceives

no

how

other

handling
dues

or

towns

school
fees

and

prob-

from

re-

the

iocai
citizens
groups
which
it
helps, it looks to the state's businesg
community for both moral
an(j

financial support,

difficulty.
Other Material

either

on

payment

a

cash

through

commission

Joins Daniel Weston

Available

....

.

.

.,

This service, which is

fee

the

,

basis

or

(Special to The Financial Chronicle)

,

available
by

Tnq

co^nected
'

advertising mats, ideas for
constructive assistmeeting specialized and
local advertising and sales promoproblems, and many excellent
suggestions.

sales training

*

I

understand

man

of

*

-■

that L. L. MoorSecurities and

C., office, who many
and dealers

hold in high

esteem and also re¬

for his sound and experi¬
enced counsel on many phases of
Mutual
Fund salesmanship, has
issued a check list of "Sales Essentials" that can be used as a
spect

added

to

& Co.,
Shopping Center.
on

(Special to The Financial

(302Y2 Main

salesmen

been

has

staff of La Montagne
Stanford

With Ueno & L.O.

Research Corp., Resident Manager

N.

Mulligan

e.
the
71

National

throughout the southeastern part
of
the
country both personally

\AAC

*

La Montagne Adds
(special to the financial chronicle)
PALO ALTO, Calif.—Hampton

in

*

Wavnp

541 South Spring Street.

paper

tion

raiif

the firm,

sales meetings,
ance

anpftf^

„L09S ANGELES, Calif.—Wayne

routing of

business to

also furnishes dealers with news-

investment

Calif.—Wil¬

to the staff of J. Barth &

Montgomery

bills come due.
to show you how and
.
,y-y
.
:

time wheri^college

Street),

Earth Adds to Staff

if

^

.

do

of the Rutherfordton

(Special to The Financial Chronicle)

.

something about.it now.
"Many thousands of parents are
using Mutual Fund investing to
build a financial reserve for the

en¬

Co.; R. W. Pressprich & Co.; R. S.
Dickson & Co. Inc.; Hirsch & Co.;
Stroud
& Co. Inc.;
Auchincloss,
Parker & Redpath; Courts & Co.;

lot of sting out of

a

financial bite

college

-

c+f+Y

formed in 1952

/"But is it possible to prepare

bonds will be redeem¬

able at regular

The Se¬

facilities

representatives

tuition

college.

for

man

know about them.' Har¬
history is. typical.

you

vard's

sale of 100,000

short-term notes issued to provide

Amyas Ames, a partner in
of Kidder, Peabody &

firm

-1 ,600

1956——l—

you

shares of common
stock, will be used by the com¬
pany
to pay off $18,000,000 of

the

$525;Yr >«•;i Co., New York City, has been ap¬
; ;/
pointed Investment Group Fund1953—L-——. 800,
Y;*..,Raising Chair¬

J ;1

the

Group

—

1949-1-

.

proceeds from the sale of
the bonds and from the concurrent

Net

v

—DOUG LAIRD

v.

E For Better Schools

"That's just the tuition. The cost
of food and shelter and clothing ,..

of

used

energy

success

Ames Heads

Mr.

HARVARD

for and take

j

(f) Greater dissemination of fi¬
information through ex¬

(g)

/

.

.

nancial

:

100.08%.

better

a

mierhtv

is

today.,

"Look at what has

sup¬

the nation's dividends and produce

approximately at which purchases
be made.

of

gaged principally in the business
plied with the firm's financial of generating, transmitting, dis¬
statement upon request.
Some tributing and selling electric en¬
firms, like my own, publish com¬ ergy at retail in an area in south¬
prehensive statements at least an¬ eastern Texas and in south central
nually and distribute them vol¬ Louisiana
comprising
approxi¬
untarily throughout the country.
mately 28,000 square miles and
The Exchange safeguards the
extending from peanville, Texas
type of securities it lists for trad¬ on the west to Holden, Louisiana,
ing by a multiplicity of require¬ on the east, a distance of over 350
ments. Before its securities can be
miles. The company sells electric
listed, a corporation must prove
energy at retail in 293 communi¬
financial soundness by independ¬
ties
and
surrounding
territory
ent audits and other reports; it
with an estimated aggregate popu¬
must have a record of successful
lation of 850,000. It also sells, for
management up to the time of
resale, electric energy to nine
listing; must have at least 300,000 municipal systems, 11 rural elec¬
shares outstanding owned by at
tric cooperatives and two other
least 1,500 people and must agree
utilities. The company also con¬
to report earnings and render fi¬
ducts a steam products business
nancial statements at frequent in¬
and sells natural gas and water
tervals, both to its shareowners in
parts of the area served by its
and the public.
electric system.
Some 2,500 different securities,
In an un a udite d report on
issued by 1,100 corporations are
operations for the
12
months
listed on the New York Stock Ex¬
ended June 30, 1956, the company
change.
On June 30, the total showed
operating
revenues
of
number of shares listed was 4,$53,414,311
and net income
of
260,000,000 with' a total value of
$10,583,145,
equal to $2.14 per
$219.0 bililon. Listed corporations common share.
employ 11,000,000 people, pay half
Other members of the offering
half of

can

award of the bonds at Com¬

petitive sale on Sept. 10 on a bid,

can

y'y'y'
,

college tuition fees:

well,

I

framework of honor
to any sales¬

bring

man."

,

do some shopping
the best way to finance college

educations

k)

and

copy

and

within the
will

to

important

y

salesman-

set of principles to guide him
a sales career will not only be

'College Shopping'"

half-century the solvency record
ranging from 105.10% to par, and
of Member
Firms has averaged
at special redemption prices re¬
99.77%; it's been 100% Since 1939. ceding from 100.85 %. to par, plus
: Customers
must
be informed
accrued interest in each case.

(d) Continuous and dependable
quotations
permit valuation of
listed securities and publish prices
and sales

won

advance

"Knowledge
of'

Young Children"

for

Fund

man;

"A Letter to Parents

Offers Gulf States

tained and at least three financial

Mutual

successful but he will be

Shares.

Utilities Bonds

in the fashion of an
market. Prices are

of

an

me

25
Broad St.,
New York 4, N. Y. This service is

Exchange,

,

outcry

the

entering

men

ship, also of those who are more
experienced as well. He has sent

s^vk'-^v/v1'

ards of integrity to be found in
through the business world
a member firm or a correspondent
i Not only V must members un¬
connection, which may be another dergo careful investigation (before
Halsey, Stuart & Co. Inc., as
broker or bank, to the exchange admission to the Exchange, but
manager of an investment banking
where
the
particular
stock
is the Partners in Member: Firms,;
syndicate,
on
Sept.
11 offered
listed. Thus, the market for Gen¬ who are called Allied Members,
$15,000,000 of Gulf States Utilities
eral Electric is on the New York and the officers of Member
Cor-r Co. first mortgage, bonds, 4V4%
Stock Exchange where orders for porations, and all their employees'
s e r i e s
due
Sept. 1, 1986, at
its purchase or sale eventually must
qualify under the rules/ IQO.848% and accrued interest, to
terminate. Transactions are made
Adequate capital must be main¬
yield 4.20%.
The underwriters
by public
the floor of

the exchange,

new

field

Having in mind the vicissitudes
all economies, I know of no
other industry which so constantly
warns its customers and prospect¬

directed

are

guide for

Edited by Ferd Nauheim,
and published by Kalb, Voorhis &
Co., Members of the New York

Halsey, Stuart Group

world

following letter is available

Sales,

of

and sale of securities from all over

Advertising

to subscribers to Modern Security

between members only, represent¬ tional life.
ing themselves or their customers,
Every day thousands of inves¬ ive customers as we do: to. learn
made binding and inviolate by tors decide to buy or sell securities the facts; understand the risks and
word of mouth, irrespective of the running into millions of shares. assume no more risk than they
values involved. Under such con¬ Geographic separation alone, to can afford,^ to provide first things
ditions high integrity and finan¬ say nothing of the great volume, firstr such as a home, insurance
cial responsibility are prerequi¬ makes it impossible to transact and an emergency fund. In this
sites
requiring
selectivity
of business in person; so they., deal posture, we believe the investor
members.
through brokers.
Investors' want who wants to own his share of
Exchanges do not buy or sell some measure to gauge the integ¬ American Business can profit most
any of the securities they list, nor rity of their broker. Such a yard¬ securely with our historical eco-'
do they fix the prices at which stick is provided by the rigidly nomic expansion.
sales are made. An exchange sim¬ enforced rules of the New' York
ply provides a central market Stock Exchange.
Its Member*
place where
members transact Firms
adhere
to: perhaps
the
business. Orders for the purchase strictest codei of ethics and stand¬
the

27

IZESEX.'

.

Chronicle)

Calif.—Donald
become connected

SACRAMENTO,
w

has

with Deno & Co

Forum Building,

Two. With R. A.
(Special to The Financial

SACRAMENTO,

Harrison
Chronicle)

Calif.—Thomas

Arthur J. Ne.ls?P
are now with Richard A. Harrison,
2200 Sixteenth Street.
A. Holton and

23

The Commercial and Financial

(1096)

Continued

Russell Graham Joins
Our

National Securities

Reporter

DENVER, Colo. —The appoint¬
ment of Russell R. Graham of 761

Denver 8, Colo¬
wholesale representative
in Utah, Color a d o,
Wyo¬
ming, Idaho,

Uvalda

rado,

Street,

New

and

Mexico,

for the Na¬

Securi¬

tional

Series

ties

was

of

funds,

mutual

1a

n

-

nounced by H.
J. Simonson,

President

Jr.,

of Nati o n a 1

Securities

&

Russell R. Graham
poration, New
York-, sponsor *
and manager of the Series.

will

Graham

sistant

Rufus

to

L.

as

serve

headquarters

Prior to joining

National Secu¬

rities, Mr. Graham was associated
since 1952 with Western Investors
Fund, specializing in mutual funds,

in Oregon.
During World War II, he served
in the U. S. Coast Guard. After
the war he attended Utah State
manager

Agricultural College, Logan, Utah,
Graduating in 1950 with a B. S.
degree.

Taylor With Hooker & Fay
(Special to The Financial Chronicle)
■

Calif.

FRANCISCO,

SAN

—

Philip B. Taylor has become asso¬
with

ciated

Hooker

the

Fay,

221

York and San Francisco

New

Stock Exchanges. Mr.

been

has

&

Street, 'members : of

Montgomery

Taylor, who

in the investment busi¬

formerly
Gorey Co. and

for many years, was

ness

is

very

with

Walter

C.

Hill

Richards

&

Co.

in

authorities. Although there have been some post¬
ponements of new money financing because of the increased cost
of borrowing, the bulk of the planned offerings are still going to
the monetary

made, since the need for these funds is more important than
higher cost of obtaining them. The favorable outlook for
over
the longer range is one of the main reasons for
much of the new money commitments which are being made.
Also, it is evident that the high level of income taxes is not un¬
favorable as far as the cost of carrying bonded indebtedness is
be

Interest Rates Believed at Plateau
seems

Meeting

PHILADELPHIA, Pa.—The In¬

vestment Women's Club of Phila¬
its first

dinner

meeting of the 1956-57 season

on

Monday evening, Sept. 17, 1956 at
The Barclay. Through the courtesy
of

the

Oil

Industry

Committee,

the

-

around that money
plateau and, although there may not be any

a

As far

adjusted

Information

speaker

at

the

seen

believed in some quarters

likely to show much change from the levels that have been
in recent weeks. The Federal Reserve Banks have been buy¬

U. S. TREASURY

The

poses,

at

•

and ^

will

ernments

come

many

as

are

form

a

the

All

basis

t

SECURITIES

distant Government

more

S.

MAPLEWOOD, N. J. —Abram
Rosen, is conducting an invest¬

.

ment

business from offices at

108

Wyoming Avenue under the firm
of Mutual

name

Associates.

Fund

a

are

securities

David

Aubrey G. Lanstoic

<' HOUSTON, Tex.—Carl Pummill

is

engaging in

ness

& Co.

.

IS BROAD

from

Street

INCORPORATED

Enterprises

a

offices

under

the

who

busi¬

Brophy

7509

Main

Investors

at

name

out¬

and
our

backbone

the

are

distribution

Discount

pointed
the

45 Milk

Two With

9l

ST 2-9490

HA 6-6461




OGDEN,
is

Utah—Louis

engaging

ness

from

Opens

Shelley, Roberts

in

a

offices

Club Drive.

•

C.

securities
at

184

s

—

BEVERLY

Steed

busi¬

Country
-

HILLS,

Calif.—

Harry
A.

M. Myers, Jr., and Henry
Rohlfing, Jr. have become af¬

filiated

with

Shelley,

our

of

system."

houses

are

even

unfair
so the

being
because,

as

consumer

Roberts

&

Co., 9486 Santa Monica Boulevard.

be¬

system,

dealers

as

favored gov-

never

regulation
is

interfer¬

or

business.

in

But

the

if

that

between

and

overproduction and all the re¬
sulting evils, we would rather
put up with limited government
regulations."
What

this

was

this:

Just

dealer

-

than

Rather

saying?
finding

ways to improve his own effi¬
ciency he wanted the government
to aid him.

He wanted

to escape

competition, not face it; but the
point we need to remember is
this
when too many business
firms are allowed to escape from
competition, the free competitive

to
ar¬

system disappears.
VIII
I

to

■;

_

third, and
final, requirement for a successful
free
competitive system.
While
.

we

now

come

my

who

businessmen

need

are

aggressive and competitionminded, they also need to have a
social point of view. What do I
mean
by this?
Again let me il¬
lustrate my meaning.
r
'

gument

they

goes,

do

not

retailer.

One

offer

of the estab-

all the services

Incidentally,

hundred years

United
the

ago

be

stated

services

con¬

basis.

He

(1)

to

get

threefold

wanted

is

of

executive

business

typical

could

in the

philosophy

the

States,

whether the customer wants those
or v

not

advanced,

is

rarely

this

when

sidered

v.

.

argument

And

what

retailers

the

new

as

a

house?

discount

honest effort

the

do

offer

competitive

established
solution

Is

it

factor

answer

is

Fair

to

hours per week, and

(3) to achieve the highest profit

to
an

per

unit

of

goods

placed

on

the

market.

by
Business

own

more

employees

possible wages,

(2) to have his employees work
longest possible number of

margins and
prices—which, if history proves
anything, must be the way to
meet it in the
long run?- In a
few instances, the answer is yes.
But, the majority of established
retailers act as if they think the
their

his

a

the

their part to meet

on

on

work at the lowest

.

Meeting Discount Competition

this;

'

(Special to The Financial Chronicle)

Louis C. Steed

BOSTON f

Corp.,

out

reducing

ST., NEW YORK S

CHICAGO 4

Vice-Presi¬

formerly with First

were

■

these

of

one

choice

Officers

of

Pummill Enterprises.

WHitehall 3-1200
231 So. La Salle Sl

Brophy,

legiti¬

make

mass

Copperstone, President;

J.

.

who

dent; and Harry A. Wertlies, Sec¬
retary. Mr. Copperstone and Mr.

securities
firm

business.

.

.

contributions to
economic community
life

Place, New York City, to engage
in

by
And he
.

.

standing

has

competitive

—

retailers

mate

been formed with offices at 1 Park

William

Forms Pummill

Corp.

Investors

to
re¬

to

ence

underselling, the
retailer,

it wishes to sacrifice the

Systematic Investors

Systematic

who

there—men

the

in

"We have

coun¬

to say:

lishe d

Form

the

..

bonds by "Agency Accounts"

Na¬

Some 10,000 dealers were

ernment

established

competition

on

him

Forms Mutual Fund Assoc.

ten

unfair

effectively curbed
there will
inevitably be anarchy in the
market
place.
The 'American
public must ask itself whether

The reported purchases
is
not considered to be any change in policy, even though some at¬
tention is supposedly being given to these issues by the powers
-that be because of the ragged market action.
of the

the

quoted by the New York "Times":

described

of

over

of

especially if quotations should improve.

PUBLIC REVENUE

the

before
of

they were unhappy. Their sales
a .competitor; really acts like
were declining, their profit fnarcompetitor and does something
which hurts—cuts a price, sells gin shrinking, their inventories of
used
cars
increasing and they
harder* improves quality—his ac¬
tions are labeled as "unfair com¬ thought someone should do some¬
about
these
unfortunate
petition" and his competitors run thing
to their trade
association, their things. Who should do the some¬
thing? The dealer?
Oh, no. Lis¬
resources, or the government for

"Unless the discount house is

for consideration at a later date in 1956,

up

speak

to

convention

Automobile Dealers Asso¬

a

goes

.

C.,

national

tional

when

unfair

It is indicated that these tax adjustments in long-term Gov¬

;

D.

a

easy

tailer in the United States

distant Treasury bonds are not held by tnese
amounts, but those that are owned are hot likely
existing levels, even though tax losses could be

useful.

ton,

cite

our

not

gists, that they are trying
destroy
"every
established

more,

sold

be

to

is

tional Association of Retail Drug¬

banks in sizable

STATE, MUNICIPAL

competition, let
personal experience.
January I was in Washing¬

me

or
at least they sing its praises
experience indicates
when they get up before their
to meet this re¬
quirement of a successful free Rotary and Kiwanis Clubs. But
at that meeting
in Washington
competitive system. All too often

Now,

it

so-called

The liquidation which has been going on in Government
bonds, particularly those in the intermediate term area, appears
to be slowing down.
Commercial banks have been the principal
sellers of these obligations, but there are indications that these
institutions are running out of the middle-term issues that can be
sold in order to obtain funds which can be used for loaning pur¬

from

Last

lieve

which means, and I now quote the
Executive Secretary of the Na¬

Wane

final example of this urge

a

escape

ciation.

"Unfair Competition" Charges

competition.

are supplying modest amounts of credit to the de¬
posit institutions there is not likely to be extreme stringencies in
the money market.
At the same time, there will not be any
important changes in the tight money policy which was instituted
with the purpose in mind of bringing to a halt the boom psy¬
chology, with its attendant price-wage inflationary spiral.

whose tfilk will be entitled

the "Magic Suitcase."

the heads

over

to

assembled

on

meeting will be Miss Doris Atkin¬
son,

As

As

umbrella

an

Auto-Dealers Urge Regulation

kind

effective

try, they have rapidly developed

Central Banks

on

the

of

Consequently,

companies in they clamor for the* manufacturer
economy need to to. cut off the flow of merchandise
executives who en¬ to the price cutter and to enforce
joy the excitement of competitive his Fair Trade contracts. In brief,
pressures.
They must be willing they say; Let's not meet compe¬
to sponsor product
research so tition; let's have someone elimi¬
that their products are steadily nate it for us.
Or take another illustration: In
improved in quality. They must
be willing
years
our
supermarkets
to experiment with recent
new
channels
of
distribution. have rapidly broadened the lines
they handle. Many of them sell
They must engage in aggressive
sales promotional activities.. Some packaged
medicines at reduced
of them must be willing to de¬ prices. The regular druggists' re¬
not
been
to
meet
velop lower-priced private brands action has
to provide effective competition this competition
in the market
for manufacturers' brands. When place, but to try for a court rul¬
the price competition of a com¬ ing or to seek state laws to pre¬
petitor is making heavy inroads vent sales of packaged medicines
into the market, they must meet in stores not having
registered
it in aggressive
fashion — either pharmacists.

by

Treasury bills, and

Liquidation By Commercial Banks

role in

growth

competitive

a

that discount houses

in this way they have been making
funds available to the member banks so that they can take care of
the needs of borrowers for seasonal purposes.
As long as the
of

ers

the
use.

be headed by

protection.
Let me give you a
few examples of what I mean.
Pick up a trade paper in my
country, and you will discover

Supplying Bank Credit

short-term rates go, it is

as

important

an

ho

Put another way,

of less aggressive competitors.

upward with opinions around that the Government guaranteed
mortgage loan rate, will eventually rise to 5%, a level tnat is now
being charged by some savings banks.

not

playing

encouraging

holds

lessening of the pressure, it is not expected that they wiiLbe
pushed up very much, if any, from current levels. It is being
pointed out that the "prime rate" is not likely to be advanced
from the present level of 4%. Also, the discount rate, althougn
not a penalty rate at this level, except as far as Treasury bills are
concerned, is not expected to be moved up from the prevailing 3 %.
It may be that "acceptability" in making loans to the member
banks will be more important in the future. This could be a very
effective measure in the control and limiting of credit for the Fed-*'
eral Reserve Bank^rrAsu'far as the other loaning rates are con¬
cerned, it is reported that some of these are still being

are

Competition-Minded Environment discount

of nonprice
they
achieve
production economies with ex¬
panding output, their lower costs
should be reflected in price re¬
ductions—rather than maintaining
the high price which, in effect,

to be considerable of a feeling

rates have entered

margins set by Fain Trade which

to assert themselves."

competition.

concerned.

There

divlduals who will not be afraid

some

business

of the financial district that the cost of near-term borrowings are

To Hold Dinner

Competition in Practice: f
Its Advantages and Risks

by price cuts of their own or by

the

Phila. Investment Women

will hold

large, with the corpo¬

municipal calender showing no signs of a slow down yet,
spite of the interest rate raising and credit limiting policies of

rate and

Federal

delphia

restricted.

much

Higher Rates No Deterrent to Borrowers

Resi¬

Carter,

in Denver.

district

activity

Demand for funds continues to be very

as¬

dent Vice-President in Los Ange¬
les and will make his

as

and

exhausted.

Research Cor¬

Mr.

Free

i

though
According to ad-;
vices, the opinions of some money market specialists seem to be
veering in the direction of the sign posts which appear to indicate
traffic on the downside in Treasury securities could be thinning
out. It is the belief of those that are considered to be among the
Well informed money market followers that prices of Government
obligations are entering what is being termed a "buying area." To
be sure, this takes into consideration a fair amount of latitude
as far a& price movements are concerned.
Nonetheless, money which is known to be on the timid side,
has been making purchases of selected intermediate and long-term
Government securities. These purchases have not been very large
and they are being made oh a sliding scale basis, but in a very thin
and uncertain market there, is not likely to be more than this,
because there is no positive proof yet that the downtrend has been
volume

Thursday, September 13,1958

...

jrom page 15

The Government market is still on the defensive, even

as

Montana

Governments

on

By JOHN T. CHIPPENDALE, JR.

■i

Chronicle

Trade—de¬

spite the fact that it is the wide

with

Social

Point of

View

of

Today, much of this philosophy
a hundred years
ago has been

changed.
possible
come

to

Instead

of

the

lowest

businessmen have
realize that higher wages

—backed

wage,

by the increase in pro¬
ductivity which make them pos-

Volume

sible

Number

184

they produce.

goods

supported

again,

The Commercial and Financial Chronicle

labor

said, "Now, Pat, I'm not the formation of a club should LETTER TO THE EDITORgoing vto say that I will refuse bear in mind:
request, but there are .cei1Organize" a''club orilytvith >
tain,forms a man,should observe their friends or people with whom

your

—

increased

by

in

mechanization and greater output
per

to

have the

which to

time in

stead

unit

lower

profits

plus

in,'

You
and

should
when I

should

you

they work

mouth,

should

you

Fish?'

'President

say,

enter

I

'Are

would

j"'

-

f

Convertibility Is Opposed

Dr. Gutmann in

letter to the "Chronicle" states

a

paid any member or members who

the Gold

bave been instrumental in organ-

ible would "add another

&

izing the club

you

we

are

on

Standard," and that making the dollar fully convert¬
of withdrawal

source

which

would

already uncomfortable situation." Analyzes po¬
tential domestic demand and foreign short-term claims for
gold,
including every item of wealth which can be sold within one

aggravate

(3) Limit the number of people

T

say,

Gold

v

•

(2) Nq compensation should be

modvinaki vn„°r££ pipe frnm^nr
nZ* from your
moving
your

ex-

an

favor.
door;

a

the

at

'Come

say

And in¬
of seeking the highest pos¬
unit profit, they believe in

buy and consume goods.
sible

asking

knock

hour—are essential if people

are

29

(1097)

quette,

the

They knov^
of

hours

shorter

that

..

.

for

markets

create

—

5568

an

am.' 'Who are you?' Then you wbo may join so that the membershould say, 'I am Pat Casey, one of ^hip does not become unwieldy
year, and concludes full convertibility cannot work in practice.
they are gradually evolving what your switchmen.' Then I would, ana unworKaoie.
I have called a social
point of say, 'What can I do for you?' Then
(4) Keep the monthly contnbuForeign Short-Term Claims
a
view
point of view which you would tell me, and the matr tions of the membership at a rea- Editor, Commercial and Financial
panding

market

the

as

to

way
wo

-

-w

—

m^asdmiW'totaf "profits.^ In "brief,
*

*

ter

out

see

be

if you

and

settled.

you

Now

in again
can't do better." ;

sonable level.

and
;,'V

the

Mr.

Chronicle:

-

should strive.
To indicate the

come

,

,,

,

.

.

.

.

-

.

state laws which

widespread ac¬
ceptance among .American busi¬
dent
Fish
said, "Come in."
In understanding and confusion, he
nessmen of this, philosophy of low
came Pat
Casey with his hat off urged prospective clubs to seek
unit profits, let " me cite some
and pipe out of his mouth.
competent advice about the posstatistics for the year 1955. Dur¬
"Good morning," he said, "are sible legal involvements.
ing that year the net profit mar¬
He concluded by telling the Adgin per dollar of sales among our you President Fish of the Illinois
ministrators:
baking companies was 3.4%, for Central Railroad?"
"We will happily join you in
our clothing manufacturers 3.1%,
"I am. Who are you?"
for

'industry

construction

our

for our chain food stores
1.2%, and for our meat packers

3.7%,
0.8

^

^ v;

I

Pat

am

Casey,

one

of

your

well

"Well, Mr.
do for you?"

Casey, wl^t can

I

of

as

you

do that

uniformity

is

know

we

ten,

if

can

point of view in American indus¬
try. Fifty years ago few of our
business
organizations had any

college

of

number

graduates in top management po¬
sitions.
Today this situation is

the

Some

President

of

the

of

Fish

Illinois

as

Instead, he exercised
his ingenuity and
the freedom
which free competition gave him
to get a job and a pass on the
Wabash.

the

demonstrated

He

study

A.

the

are college graduates.-More¬
the great majority of these
college-educated business leaders
spent their college years in those

i

ci v

i

in

75%

mon stock .at a

in

arts

liberal

the

stressed—and these are

were

the

which

which

in

colleges

very

a

& Sons

are

Net
10
wic
the

price of $7.25

circumstances

Will

be 'used
uocu

by

,uj

■

Gold-Standard,

New

Exchange,

Stock

per

the
tiic
•

is the
in
the
United
nylon rod, strip and tubcompany

producer

States of

has draulic uses which is called "Nylaflow," and a line of specialty

the structive growth of investment injection molding industry under
Basi- clubs.
the company's registered trade"Investment clubs," Mr. Law- mark "Nylatron." The company's
oomnetition rence said, "seem to be multiply- own fabricating division supplies

of this paper?
cally, two things:
that

Firct

among'

free

firms

business

can

snhstantiallv

trihntP

conrising

to

ing

they machined or punched items to

Already

everywhere.

have become a new force in the

those

customers

who

desire

to

old securities market place, and purchase finished parts.
while they continue to grow we
Polymer Corp. recently acquired
growing
must face UR to th® fac] tbat s?™e an exclusive license for the U. S.
shared by an expanding part of uniform pattern should be estab- from the firm of Knapsack-Griesthe population—and, at the same lisbed'"
...
..
heim of Frankfurt, Germany, for
time
helo
in
the
creation
or
Mr. Lawrence spoke before the a new coating process known as
^reservation Of odrsonal freedoms
39th Annual Convention of the "whirlsintering." which is called
preservation of personal treeaoms.
standards

Gold

r

.

•

As

living—reflected in
incomes and a
amount of leisure time
of

National

that

Second,

competition

free

just does not happen, that a coun-

Asociation

with

the "Whirlclad" process in this
men who are
country. The process consists of
responsibility dipping a preheated article into a
public against fiuidized bed of finely powdered,

the

try
and its people ™ustcon- of protecting the
sciously strive to make such .a securities frauds.

Spma^dqWa0willineness to enforce
l^w it reauires
anti-^^T^ ^^qpires
Successful
an

where
a

business

executives

adont
adopt

social point of view.

May I conclude with one of my
stores, one which illusspirit needed to

trates the kind of

competitive
economy
successfully? It concerns
a former
president—Mr. Stuyvesant Fish by name—of one of our
well-known railroads, the Illinois
make

a

function

Central.

*

■

,

material without the

t

»

*

The company is currently

can

contribute
'
'
J -

to
J-

the

sound

installing production equipment
educa- to prepare various resins in finely
tional tool which will help create divided form and to blend them
an informed shareowning popula- with suitable
ingredients for sale
tiori and strengthen our People's to users of the process.
Capitalism."
The company's products are sold
The
Exchange executive exand
distributed
in
the
United
plained that investment clubs are
usually formed by groups of 10 to
Reading, Pa., through warehouses
15
people
such
as
neighbors,
and sales offices in Chicago and
friends or fellow workers — ail
New York, and by sales
agents
people with a mutual interest in

growth of

favorite

dry plastic

c/7h<Q St°C'r Ex nan?e. ?n
presence of solvents. The method
State Securities Admimstrators,. appears to have extensive possim Lawrence declared, "share bilities 0f application for coating
mU'
same interest m this metals with polyethylene, nylon,
pr?iieC
:
i
'
w0,fkir!g \°~ epoxies and a broad range of other
gether, wisely and constructively, resins.
we

^Conclusion

securities

Administrat0rs—the

charged

an

exciting

new

or

distributors

in

27

localities

Fish's investment. They get together inthroughout the U. S. Its products
office one morning an Irishman, formally,
he pointed out, and also are sold in Canada, many
hat on and pipe in mouth, who jointly
select their investment E
countries
Australia,
>
after studying all the information ^uropean counuies
into

walked

There

'

,

,

,

r

a

pass

I® i_aie y

they have available. Each member

Trmic"

to St. Louis
u

Ft.7»v

+

"if

*

one

switchmem";

contributes

d




small

amount

•"* monthly, perhaps $10. Usually

vour

"

thinking it was a good
chance to impart a lesson in etiMr. Fish

a

an

iapan', ^

various

South and

Central American countries.
Net sales of the company have

investment club will call on a increased from $38,411 in 1946
when it was organized, to $3,588,Mr.

that

Lawrence

people

who

recommended
are

practically

in

Gold

balance

on

Gold,
in

we

World

during

that

This is only part of the
story,';'K' '£v v;f"
period.
It

would

be

mistake

a

only these 27%

as

take

to

basis for cal¬

a

culating withdrawal rates of Ex¬

perience, because the 58% of the
total

amount

withdrawn

benefit

which

in

of

kind

the

not

were

had

also

the

"Gold-Effect."

As

,

,,

I ^ subsequently,
/1Ve W ^
to swltch,from a

^

J"
C1\rrency into —an
!a!"® one. Therefore
,

?

...

£

^ withdrawals of
baIances is .highly significant. Un¬
,

+

-.C

the . Stipulations

der

.

•

(4)
Cold

TH/rn

xi

of the I.M.F.

which

the

lion

author requests,

were

namely full (100%) convertibility.
How can the author's proposal to
"make

in 1955, and $2,185,198 for the

considering first six months of 1956.

seven

years,

about

sq

are old Stock, which
refuge here during the war,

took

this Gold constitutes a part of the
required Reserves of foreign Cen¬
tral
Banks, it will not be sold

without necessity.

Why time and
proposal
is

again

"full

that

proven

cannot

successfully.

of

work

same

be clear¬

can

such

in

the

Convertibility"

advanced, while it

ly

dealt with

could be

move

a

last

$4,250 billion

fully convert¬
ible," that means for all holders
of dollars, under these circum¬
stances constitute a cure? It would
only add another source of with¬
drawal which would aggravate an
already uncomfortable situation.
Nowhere in his article, the author
makes the attempt to prove, that
such

the

in

dollar

the

Earmarking which means
Storage of Gold, did not in¬
abnormally. Of $6.95 bil¬
set
aside only $2.7 billion
actually withdrawn from us

crease

already governed by the con¬

are

dition

a

procedure

practice,

under

circumstances is hard
understand. ;v..
present

Item Sold
Within One Year Into Gold
Every

Converting

There

is

such

no

thing

to
• ■ ■
as

"Inflation Without Tears."

(3) Every item of wealth which
sold

be

can

listed

be

for

within

as

Gold, but

one

year

potential

a

only

circulation, 225 billions

Deposits, 232 .billions of
Government Securities, 38 billions
uovernmeni oecunues, oo ounons

municipal and

billions

200

obligations

local

co^orate

in

Bonds, preferred and common
outstanding, the total sum of the
Potential

is

of about 6% is usually
regarded as a minimum by tradi¬
tional monetary science, but let
recourse

here to the rate

of

experience
as
Professor
Spahr2

estimated
and

billions

not
taken
into
consideration
here.
have about 2 billions of
foreign short
Credit Claims.

are

We

term

Joins Hannaford & Talbot

billions.

725

A coverage

have

3 Dollar bills floating
abroad, several
of them, and about 6 billions of
foreign Investments in American Stocks*
.

of bills in

in Bank

us

I

by

(Special to The Financial Chronicle)

SAN

affiliated

ert

the

18

or

billions.

With

an

billion

and

quired

for

$8!£

basis

1

at

billion,

of

demand

the

this

minimum

—

become
&

Tal¬
*■

HILLS, Calif.—Rob¬

Hilmer has been

staff

of

Santa

Fabian

&

Monica

added

to

Company,

Boulevard.

<

$21,875
re¬

we

Deficit
on

the

domestic

rate.

2 Walter E.

Stock."

Gold

a

and

Dept. of Commerce

Burjress

of

$12,375
billion
legal Coverage,

arrive

would

of

L.

9500

Gold-Stock

Calif.

has

Hannaford

(Special to The Financial Chronicle),

BEVERLY

resort to the bottom rate of

2V2%,

Walsh

Fabian Adds to Staff

top percentage rate
of demand," unquote. Now let us
common

C.
with

bot, 519 California Street.

quote

a
decade prior to January
1933—2Y2 to 3%—can be regarded

a

FRANCISCO,

Carmelita

"for

as

GUTMANN

,

■

Demand

R.

Street, Room 1603-4
4, N. Y.
Sept. 4, 1956.
1
1
New York

With 30 billions

verted into Gold.

and

ERNEST

60 Broad

small

very

a

DR.

can

demand

percentage will actually be .con¬

Mr.

"f

"I want

withdrawn

heavily

Markets

(2) Our Gold-Stock is $21,875
billion, out of which $17 billion

A

of

of balances

Gold-Stock

our

actually

higher per capita

,

85%

or

did not change during this period
and as $620 million, or 27% were

the

are

million,so

withdrawn,

were

ipcfal
legal,....

pnvpr
cover

.

.

us.

Polymer

What have I been saying in

paragraphs

$2,281 billion,

"they

1933

$392

■

nminr,

«19 w

follow¬

purchase ja<Jditibnal/;d?me®£lc Rcserve^^Requirements, the situ a^t ion11 has* completely
plus the fact that a Gold With¬
production and development machanged in this respect, the ac¬
drawal potential of $171 billion
cent is on concerted action.
chinery; to reduce current bank
exists, against foreign short-term
loans
and
to
increase
working
Credit balances on deposit with
Earmarking
capital.

sioners from all over the nation nylon inolding powders which are
the Exchange's'full cooperation in blended from materials purchased
developing the sound and con- by the company and sold to the

M IX

on

:

foreign

the

in

to

off

is

—

$12,375 billion in
needed at Rpsprvo to c
present,
Hnmpstir
,

broad, social point of view of so- offered State Securities Commis-

ciety would be developed.

are

billion,

amounted

Goldabsolutely
not identical with being off the
Gold-standard. The best proof is,

Me.—Ruddick C. ing. It also produces a specially
Vice-President of the processed nylon tubing for hy-

York

We

being

Circulation

Coin

ROCKLAND,
Lawrence,

abandoned?

never

is

company, to

major

Developing Inv. Clubs

Gold-Standard

actually
be
the
wisest
move," but how do you return
to5; a position
which - you have

of-

,

the

to

might

proceeds from the sale of that

Stock

oldla.
vymiiVv
Li-i'
'Cil' :

present

sudden

foreign Short-Term
balances
amounted, to

$2,673

"that

under

Gutmann

R.

return

a

(

share.

The

over,

institutions

Edwards

as

author

does:
E.

Dr.

fering publicly 41,300 shares of
The Polymer Corp. class A com-

,

itU

G.

the

Statement

of

*

1929

bought

easy

make

to

In

dollar

;

(1) It is

Polymer Shares

Railroad.

For example, a
aggressive competitive spirit
of 33,500 business execu¬
which is essential if a country is
tives disclosed that 88% of them
to rely upon a tuiii uc nu v g ov o icni
upuii a competitive system
went
to
college.
Or again, an
to
produce in 'the future still
analysis of 106 board chairmen
higher standards of living for its
and presidents of 66 corporations
people.
with annual sales in excess of
one billion dollars indicates that
different.

quite

Offers

men¬

tioned so,

we

of

life

u

withdrawals

ing:

con-

What happened in the

period

Gold

perti-

facts

not

are

as

go.

the

monetary

the

Central

of

nent

go

removal

last

events

more

A. G, Edwards & Sons

for

tend with.2

as

mentioned

are
to
encourage
the
healthy
to hell. I got a growth of clubs on a national
job and a pass on the Wabash." scale and thus capitalize on their
Management
Pat Casey might have spent the broad educational imoact."..
Personally, I think the gradu¬
rest of his life cursing President
ates
of
our
American
colleges
Fish and voting for Congressmen
have had much to do with the
who pledged themselves to work
development
of
today's
social

"You

far

as

the

some measure

essential

foreign Short-Term claims to

cleverly writ-

developing a uniform handling of
investment clubs. For

switchmen."

College Graduates In Top

appreciable

We have another $17 billion of

Lawrence

emphasized that
The
article
"Foreign
Short.
...
might affecL —
Term Claims and a Cure for the
the organization and onoration of
So
the
switchman
went
out. the organization and operation of Gold-Onn" hv Fir n n
Gold-Gap" by Dr. G. C. Wiocranrl
Wiegand
About two hours later there was investment
clubs varied greatly (thereafter called the author) is
extrem ely
a
knock on the door and Presi- from state to state. To avoid mis-

of the goals for which they

as one

would

go

of living

places higher standards

for their customers and employees

New Cruttenden Branch
CEDAR RAPIDS,
tenden & Co. has

office

in

the

Iowa —Crut¬

opened

American

a

branch

Building

under the management of Edward
H. Kane.
per

Dec. 31, 1955.

Spabr "A Refutation of the
Table of Claims on our Gold-

Mr. Kane

was

formerly

local manager for First Securities

Company of Chicago.

30

The Commercial and Financial Chronicle

(1098)

Southeastern IBA Group
To Hold

Continued

Meeting
of

Association

Bearing

America

The

Home¬

stead,
Hot
Springs, Va.
nominat¬

A

ing committee
consisting of:
Edward

C.

Anderson,
Chairman,
Anderson,
&
Strudwick,
Richmond,
Va.;
Edward
K.; Dunn,

■

Charles H. Pinkerton

rett &

Robert

Its
International Trade

on

the consumer to choose from.

which
by their
very
largely protected from
foreign competition, such

activity

■

southern

merchandising,

construction,

services industries,

other

the

and

Canadian

tend

costs

rela¬

be

to

tively high because labor is dear,
domestic market is small and

the

and the economy as
burdened with high

fragmented,
a

whole

is

I

at Furs

competing

funda¬

these

discussed

have

countries

other

and

States

the basis of a

on

market.

contained

large
supply

a

limited

Canada's
class

agricultural land
suitable for intensive and varied
cultivation.

,

with

terms

domestic

narrow

colonies

of

first

of

equal

on

As

geography and resources at some
ment was more
length
because
throughout
its
in the Atlantic
history
they
have
shaped the
velopment was
course of its economic growth and
external trade. Let me give a few lumbering, and

Chairman, Charles H. Pinkerton,
Baker, Watts & Co., Baltimore, concrete examples, from our his¬
Maryland.
tory by way of illustration. One of
Vice-Chairman, W. O. Nisbet, the first
primary export industries
Jr.,
Interstate Securities Corp., to develop in pre-Confederation
Charlotte, N. C.
Canada on a large scale was the
Vice-Chairman,
Ha r v e y
B. fur trade, which waxed and waned
Gram, Jr., Johnston, Lemon & in accordance with changing ideas
Co., Washington, D. C.
of
fashionable dress in Europe.

Canada's

of

the. United

of

those

share

mental characteristics of Canada's

side

continuing problem of economic
growth, the difficulty of develop¬
ing
secondary
industries
and
commercial
services
capable
of

These

Look

A

Ontario—illus¬

of

part

another

rather

overhead costs.

the

River

system—now
the Province of Quebec ■ and the
trates

as

*"

forms

colonies, and de¬

based on farming,
relatively simple
and

manufacture

of

settle¬

result,

a

concentrated than

com¬

needs of the
local market. Well before Confed¬

serving the

merce

eration, the better" and more ac¬
cessible

had

in

land

farm

colonies

these

taken

been

vestment outlays of this type have

1896-1913

From

accounted for

"

and 1920-1930

;

of

The burst

history

pre-Confederation

Lawrence

direct

liam

,

The

St.

up

Expansion
.

With U. S. A.

nature are

Sons, Baltimore, Md.; Wil¬

Croom,
First
Securities
Corp.,
Durham, N. C., has made the fol¬
lowing nominations;

Transportation Competition

of the colonies situated along

Even in the fields of economic

Gar¬

W. Mackall, Mackall & Coe,
Washington, D. C.; and W. D.

growth is the proportion of gross
with the grand design ' national expenditure represented
of the national transportation sys-~ by outlays on new construction,
tem laid down 70 years ago.
v
machinery and equipment.
In¬
caught

Annual
Meeting, Sat¬ vestments in machinery and
urday, Sept.
equipment and the offer of an
1 5, 195 6, at;;
ever-widening range of models for

will hold its Thirty-Sixth

election

the

to

Executive

C.

\

T.

■,

Com¬
'

,

Williams, Jr., C. T. Wil¬

liams & Co., Inc., Baltimore, Md.
(for three-year term).

led to the establishment of chains
of

trading posts

in

increasingly

remote parts of the country many

hundreds of miles from the

near¬

est population centers. Heavy out¬

lays on transportation were in¬
volved, since the furs had to be
carried for very long distances
along the inland waterways and
shipped across the Atlantic to Eu¬
rope.
Rising
costs
and
falling
officio./'-v<;!•'>/./;////(
demand
eventually
Mark L. Sullivan, Auchincloss, overseas
brought about the decline of the
Parker, & Redpath, Washington,
industry. Apart from the stimulus
D. C., Ex-officio.
it gave to exploration and the
A
Roderick

D.

Moore,

Branch,
Cabell & Co., Richmond, Va. (for
one-year term).
J. Murrey Atkins, R. S. Dickson
& Co., Inc., Charlotte, N.
C., Ex-

complete

program

will

be

issued shortly by John C. Hagan,

development

inland

of

water

transport, the fur trade failed to
Mason-Hagan, Inc., and W. make much of a
lasting contribu¬
Lanahan, Jr., Stein Bros. tion to Canada's economic de¬
&.
Boyce,
co-Chairmen of
the
velopment or to permanent settle¬
Meetings and Entertainment Com¬ ment.
Nevertheless, the decline of
mittee.
*;
this particular
export industry,.
Mr.
Murray Hanson, General
although temporarily damaging,
Counsel of the Association, and
was not fatal to Canada's growth.
Mr. George W. Davis, President of
It is indicative of Canada's suc¬
III,

Wallace

.

the

Investment Bankers

Associa¬

in

adapting her economy to
tion, will speak briefly at the busi¬
changes in external markets that
ness meeting on
Saturday morn¬ out of total merchandise exports
ing. Mr. Edward A. Wayne, Vice- of
$4,350 million last year, less
President of the Federal Reserve
Bank

of

than

1%

Richmond, Virginia, will furs,

address the dinner meeting in the

evening. The Executive Commit¬
tee

cess

urgently

requests

that

all

members attending the convention
be present at the

Saturday
ing business session.

morn¬

Joins Schwabacher
(Special to The Financial Chronicle)

FRESNO,
Chartrand

is

Calif.
now

Schwabacher

&

Louis

—

affiliated

Co.,

2048

Street.

H.
with

accounted

was

Canada's

once

A

somewhat

for

main

by

export.

similar

picture of
rapid economic growth and subse¬
quent decline based on changes in
external

demand

and

technology
may be seen in the pre-Confed¬
eration economy of Canada's At¬
lantic provinces. During the 1850's
and
1860's, Nova Scotia and its
neighboring colonies reached un¬
precedented
based

peaks

exports

on

of

of

prosperity

codfish

and

lumber, shipping and shipbuilding.
Kern
This
prosperity depended to a
considerable

Walston Adds to Staff
(Special to The Financial Chronicle)

extent

Nova

on

Scotia's

mastery of the technique
of building and operating wooden
sailing vessels. The basis of this

FRESNO,
Calif. — Vbrgil
C. economy was rapidly destroyed in
Winters, Jr., and Doris N. Wood subsequent decades by a major
have become
cpnnected with Wal¬ technological revolution, the re¬
ston & Co., Inc.,
1115 Van Ness placement of wooden sailing ves¬
Avenue.

sels

by steamships built of iron.
changes in technology have
With Halbert, Hargrove
played an important role through¬
out Canada's history. Sometimes
(Special to The Financial Chronicle)
.f
LONG BEACH, Calif. — John they have affected our develop¬
ment adversely, sometimes they
Hutchinson is now connected with
Such

have

Halbert, Hargrove & Co., 115 Pine

stimulated

vances

Avenue.

in nuclear

ample,

With A. M. Kidder Co.
MIAMI, Fla.—William R. Bow¬
man

A.

has

M.

become

Kidder

&

connected

Co.,

Flagler Street.




139

with

nium

one

exports,
and

our

ranking
10

principal
with

years

virtually

making

no

expanding trade of the American to the north of the main centers
mid-west. Large sums had been of Canadian population. Renewed
spent in vain by these colonies on growth in the primary industries
canals and railroads designed to brought in its train further ex¬
draw the trade from the mid-west pansion
of secondary forms of
down
the
G r eat
L a k ejs-St. activity protected from external
Lawrence
river
system
rather competition by their nature, by
than across to New york. Their geography, or by traiffs.
As on
American competitors, however, previous occasions, this wave of
were able to spend even larger expansion was accompanied by a
sums

on

the construction of

com¬

peting canals and railroads. Tariff
obstacles constituted
threat

an

to continued

American

market.

additional
to

access

On

the

hand,

access to the markets of the
Canadian Atlantic Coast colonies

of

uranium

This
came

period

larger markets that the colonies
along the St.'Lawrence River sys¬
tem threw their support behind
the

the

scheme for confederation and

construction.

of

transcon¬

a

to a halt about 1930 with the

of

onset

the

in

1867,

and the

major

total

lack

of

exports: on
exports
of
goods and services in 1955 we're
above
the
25%
1949
level
in

physical

volume and over 40%
in terms of actual dollar value.

up

Total

imports of goods and serv¬
however, have shown an
even more massive increase, ris¬
ing by almost one-half in physi¬

ices,

cal

volume

and

by

almost

thirds in dollar value.
has been

current

a

two-

The result

bal¬

account

of

ance

the

net

of

end

drawing
has

sources

1955.

This

heavy

external real

on

of

re¬

greatly
imposed on our
domestic economy by rapid ex¬
pansion; consumer prices in 1955,
for instance, although about-16%
higher than the 1949 average, ap¬
eased

course

the strain

pear to have

increased somewhat

is the fact
able

of trade, the disappearance of

ments

the

States.

Worid War

outbreak

The

of

II

again provided a
strong external stimulus to Cana¬

dian
expansion,
especially
in
independent nation was the agriculture, mining, and certain
completion of the first trans- branches of manufacturing, and
Continental railway. This was an because much of this wartime ex¬
enormously costly and ambitious pansion was in basic industries,
undertaking for a very young the transition to peacetime condi¬
country, in view of the great dis¬ tions took place without a funda¬
tances and rugged country to be mental
change in the direction

the

any
fall in
contrary,
total

the

that Canada has been

an

and

to

payments.
The
growth of this deficit has not been

nance

ment of Canada's first 20 years as

spanned

due

deficit ,in

of

remarkable, however,

United

reality
achieve¬

a

balance

county surplus in Canada's bal¬
ance of payments at a low level
net capital inflow, and net emi¬
gration
of
manpower
to
the

Confederation became

our

the reappearance of a current ac-

and commercial

.

ex¬

less than in most
countries, and
During the 30's, the failure of the indeed have been virtually stable
since late in
1951.
Even
more
economy to grow was reflected in

of

Canada's

economic growth.

settlement along most of the route.

current

a

deficit

balance

of

to fi¬

of

pay¬

this

magnitude
without significant strain on her
; external financial position,
owing
to massive inflows of private for¬
eign capital.
Between end-1949
and end-1955, over $2,000 million
of private foreign
capital cahae
into

Canada in the form of direct
investment inflows alone, and the
total
gross
inflow in all forms

was

sufficient

not

only to

cover

the current account deficit and to
finance

substantial
outflows <* of
Canadian capital, but also to make
possible an increase
in
official
gold and U. S. dollar holdings of

Unusual Growth in 1950s
Nevertheless,
the
railroad
was
close to $800 million and an
ap¬
finally completed in 1885, after
The first half of the 1950s has preciation in the
exchange rate
much difficulty and very heavy
again been for Canada a period of the Canadian dollar in terms
external financing obtained large¬ of
unusually rapid growth, ac¬ of other currencies.
Throughout
ly in the United Kingdom. The companied,
one
should
perhaps this period, the Canadian econ¬
great expectations of the railroad's
add, by unusually mild growing omy has remained comparatively
promoters were on the whole to
pains. Compared with most other open to foreign competition: the
be disappointed, at least in their
countries, Canada seems recently last remaining import restrictions
lifetimes. The wave of settlement to have
enjoyed a higher-than- were removed in 1950, exchange
and development of the Canadian
average rate of economic devel¬ control was abolished in 1951, and
,

west which the

designed

railroad had been

to

bring about did not
really begin for another decade,
partly because of depressed eco¬
conditions

in

the

outside
was

still available for settlement in the

.

combined

opment

than-average
inflation
strain.

United States. Indeed, it is only in

this

recent

pansion.

the

growth of

a

lower-

ume

of

general

serve

order

latest

af¬

A

few

to indicate the

of

wave

One

trade.

of

magnitude
economic

useful

effective

tection

level

of

tariff

pro¬

duced

enviable state of

external

figures will

the

domestic
financial

tively open and Unrestricted econ¬
omy and a rapidly growing vol¬

at

that

of

external

fairs has not proved incompatible
with the maintenance of a rela¬

ex¬

years

with

degree

and

This

American
west;
and
when
it
finally did take place, it failed to
transform
Canada
into
a
great
economic
power
rivalling
the

;

growth

tinental railway designed to open
the Canadian west for settlement

exploitation/

national

sistent current account

to

rapid

of

by

world, partly because free land

metal

we

from United States.

now.

Great

other frustrations in the search for

than one-fifth

growing -balance
of
deficit financed by heavy inflows or roughly 7% of total current
of foreign capital coming mainly receipts, from
the end of 1949

world-wide depres¬
Britain was handi¬ sion and it
began to look orice
lack of year-round again as though the Canadian
communication by sea or of an economv had reached the limits of
overland rail connection, and by its
development. Growth was not
the loss of tariff preferences. It resumed on a
major scale until
was partly as a result of these and
the early years of World War II.

and

capped

nomic

ura¬

the

gross

Canada's

payments deficit aggre¬
payments gating more than $2,200 million,

other

ex¬

aluminum

ago

up

immediate

their

of

ad¬

Recent

physics, for

rapidly

of

nickel;

East ported
all.

are

it.

limits

the

more

of

develop¬ penditure in every year sinte
ment based on the railroad lasted
1948, and the proportion is cur¬
from about 1896 to 1913, and in
rently close to one-quarter. This
this short period of time the grain,
degree of sustained concentration
economy of the western prairies on
new
capital investment has
grew rapidly from its earliest be¬ been r equalled
or
surpassed oc¬
ginnings to a state of comparative
casionally in Canada's previous
maturity, made possible, among history and in the experience of
other things by the discovery of other
countries, but even so fit
an
early-maturing-'and rust-re¬
represents a very high rate of
sistant strain of wheat. Men and
growth. Rapid expansion of pro¬
capital poured into Canada from ductive
capacity has helped to
the
United
Kingdom and, else¬ raise
Canada's
Gross
National
where, wheat became a major ex¬ Product over
-30% in terms of
port, and the first important ex-*
physical
volume
between
tha
pansion of secondary manufactur¬
years 1949 and 1955, and a fur¬
ing and service industries oc¬ ther
substantial increase seems
curred. This era of growth came
likely to occur during 1956. Per¬
to ah abrupt end in 1913 as a
sonal consumption per capita in
result of a sharp contraction in
1955 had risen about 12% over the
demand
in
the
outside
world.
1949 level in physical terms, in
Shortly, after the outbreak of
spite of the competing pressure
World War I, the needs of the*
on our- resources
during this pe¬
Allies for foodstuffs, metals and
riod from rising investment and
munitions again provided a strong
exports and higher defense ex¬
stimulus to Canada's export in¬
penditures.
dustries, but the end of the war
brought a severe readjustment, and
Meeting an Adverse Trade
the next major wave of expansion
Balance
did not really get under way until
Externally, the counterpart of
the early
1920's, stimulated by
this high rate of domestic expan¬
rapidly growing world consump¬
sion has been a large and per¬
tion of the newer industrial ma¬
western

and
terials and by technologica 1
growth were already becoming innovations especially in the field
Secretary-Treasurer, Joseph J. The pattern set by the fur trade is apparent. Furthermore, they were of metallurgy. Development was
Muldowney, Scott & stringfellow, t y p i c a 1 of much subsequent engaged in a losing competition concentrated on pulp and paper,
with
the rapidly
growing com¬ non-ferrous metals, and hydro¬
Richmond, Va.
primary
resource
development.
mercial centers
of
the
Eastern electric power—resources located
In addition to the above officers,
Fur trading
was
for a time a
the committee has nominated for highly profitable activity which United States for a share in the mainly in the less accessible areas
mittee:

Thursday, September 13,1958

the Canadian economy has finally

13

page

Canadian Economy and

RICHMOND, Va. —The South¬
eastern Group of the Investment
Bankers

from

...

measure

of
ex¬

of

has

been

gradually

re¬

as
a
result both of inter¬
national agreements and the
effect
of rising prices on

specific duties.

Current

and

Past

Expansion

The current phase of
expansion
in Canada resembles
previous pe¬

riods of rapid growth in

our

his¬

tory in that its mainspring again
seems

to

have

been

a

great

in-

rf
The Commercial and Financial Chronicle

Number 5568

134

Volume

(1099)

the competitive more or less indefinitely supply us
advantage in world markets en- with major new resources of exjoyed
by
other
producers
of portable commodities about ,(as
the
past two or three years -i at highly manufactured goods.
rapidly as the existing ones deleast, of farm products. Although ;
TT
c
A
/ cline in importance. This seems
direct outlays on the expansion
Export- itise to u. o. A.
to have been the case so far in
of productive capacity in the priThe regional pattern of Canada's our history: exports of farm
mary industries sincev1949 have
export trade with the outside products, for example, which acin

crease

for our

demand

world

beem. overtaking

primary export commodities, with
the
important exception, during

semi-manufactured goods used by

—relatively,

Canadian industry, the overall
growth has been much more moderate and the United States has
greatly increased its share of the
market compared with other suppliers. The reasons why other
countries have failed to expand
world during recent years reflects counted for 45% of total exports their sales to Canada in this field
not only the impact of develop- in the late 1920's, accounted for as rapidly as has the United States
ments within the Canadian econ- only 17% in 1955. The declining are complex: to some extent it
omy but also developments abroad importance of our agricultural ex- may reflect the pull of their own
—notably the great industrial ex- ports has been largely offset by expanding domestic markets on
Pension in the United States and the increasing importance of such their available resources, to some
Western Europe and the recovery new . exports as petroleum, iron extent it may reflect the fact that
ore and uranium.
Canadian manufacturing
A Record R.se
Imports
plantsthereownedlarge y supplied
are ore
or controlled by,
J-lon* While Canada s total exports
A Record Rise in Imports
d
Jja7e riSi!!/in y
n t 7°
On the import side of Canada's from, the United States. Imports

portion cf total fixed investment
outlays, they have played a key
the

in

role

over-jail

in

vestment

fields

related

tivity
and
providing
attraction tor inflows

ac-

demand

industrial

the

of

most

of

the main
of private

World

capital.

foreign
for

growth

indirectly stimulating in-

process,

ma-

between 1949 and 1955, exports to
tod^tes""^biy ^t^^d certairi m'rkets have increased merchandise trade, +hp somewhat of textiles, which Wei
a
have
inausiries,
notaoiy
meiais
ana
drrxxrixr
similar ninfnrp nf the course of more slowly than total
picture of
terials

produced by our primary

forest

products,

,

since

greatly

has

early

the

postwar

reflectinff the ranid rate of

vears-

c

more rapidly than to others

expanded

nrn

■SS World supplies
WW?? QimS
duction.

nf

-

of most
of these commodities have failed

cApwiwicc

uimiie, uie

™

d.iaJ? productive capacity, espe-

many

in

a
decided cost advantage
other suppliers—e.g., alumi-

cases
over

substantial proportion
world's undeveloped re-

num-r-or

of

have

since- we

the

a

nickel, asbestos and

serves—e.g.,

other

In

uranium.

e.g.,

cases,

petroleum and; iron ore, developmuch

ment has taken place not so

because of short-run market con-

siderations

the long-run pros-

as

n.1

nnnrco

ar

economic development in

re-

mnro

account for

a

yearSj

railway rolling stockand construction materials, appear to have
more than doubled in value between 1.949 and 1955, and currently represent something like

oniy io%. The result is that the 30%

ada's total economic activity stems
partly from an improvement in
the

^

than on even terms with their counter-

rather

expanding,

rapidly

pect that present sources of world foodstuffs or secondary manufac- parts in other industrial countries.
supply will be used up or be- tured goods
which have been Canadian industry appears to have
come
unavailable.
With
the stable or contracting. Exports of been rather more "successful in
United States becoming increas- such materials as metals, lumber, meeting competition from, imports

leriais sne expoiis ana tne manu-

^ ™*^tioS^^
^

enterprises, and cost advantages
in the capital intensive mass pro-

(and higher prices for) these instands

materials

out

in
our
export
figures,
Canada's exports of forest products metals minerals and chemicals' have virtually doubled in
since

value

exports
a

Product

Sa?

Albeu

the

the
ine

las
lag

ment
ment

of

eventual

increased

invest-

field
neicj,

this
tnis

in
in

nrniprts
projects

their

of
01

starting

the

from
11UI

over

11%

Because
because

neriod
peiioa.

indus-

risen

have
Ildve

to about

As

National

these

of

total

40%.

Gross

of

materials
s

between

in

only

risen

exports

about 9%
samp
same

although

1949

have

proportion

and
ana

coming to fruition

exports,

we

can

ot

Exports

years.

aprirnltiiral

of

Fynnrt?

ypnrc

agricultural

products, on the other hand, were
substantially lower in value in
1955 than in
1949, though they
underwent

sharp temporary

a

ex-

and 1953.
The
explanation
seems
to
be
that
world
output
of
agricultural
1952

jn

pansion

commodities

expanded

world

fective
a

result

vorable

recent

in

of

partly as
exceptionally fa-

demand,

an

series

than ef-

of growing seasons

rising productivity, partly as
result of the recovery of agri-

—

....

,

<

procuremenx in c.anaaa, ana in
creased American fondness for

Canadian maiKet
cfnnric:
rinrinf
thp

Canadian whiskey.

bas been equalled or

Canadian

c<se^ wn .cn

riljrinS

thp

six

nast

ua a

high

'

■■

Areas Attracting Investments

to

some

extent

Canada

price

policies

support

countries.
is

In

consuming

in

addition,
a

growing

proportion of her food output at
home and in the process becom—
ing

an

increasingly high-cost pro-

ducer of most farm products other

than

Exports of manufacin 1)955 were virtually
unchanged in value from their
1949 level, which implies a
decline in physical volume because
grains.

tured goods

Seif_contained

such

economy

The

exnect

rec°ent

increase in importance
exnort industries

nf

to

be

at

nrimarv

reflects"an exceptionally high rate
of discovery and development of
new

posits which
decline

the

'

to

as

and

metal

has tended
in

such

uranium

de-

mask

agricultural

ex-

how-

might well be that we will

increasingly
limits of
as

ore

The longer-run trend

p0rts
ever

resources

we

come

up

against the

primary resources—
already doing in the

our

are

of

good
agricultural land,
easily accessible forests, economic
hydro-electric power sites and so
forth—and that in spite of increasingly efficient methods of

case/

-

quite marked had it not been for

importance of exports of primary

This

increased
ment

S.

in Canada.

ord of the

little

U.

military

procure-

The export

rec-

past six years provides

evidence- that

Canada




has

lmporieo

past rix vears
six years
exceeded by

few

itvv

other

foreien eoods

was
.

.

the fourth largest in the world—

as

work

mi<*ht

these resources, the
growth of domestic consumption
will gradually reduce the relative

the

tor

nast

rate as total investment outlays.
Rise in Autos,

declining

cost

.

burden

transportation

of

over-

ductivity accruing from technological advance and greater applications of capital have permitted
certain branches of our secondary
manufacturing and service industries to develop at a moderately
rapid rate during recent years,
The growth has been most evident in the intermediate stages of
manufacturing, in relatively new
and technologically developing
industries shielded by tariff protection, and in services industries
not greatly affected by direct import competition, such as construction, transportation, etc. This

States and other countries.

It

Electric Goods

the

and Some Chemicals

imnorted

least

at

intervening rise in prices,
decline
would
have
been

of

the

for

■

tion of long-run tendencies toward
well-rounded and more

non-ferrous

various

-

heads, and the growth in pro-

exploiting

commodities.

it

may

be

continuing

On

the

other

just possible
processes

of

hand,

that

the

explora-

tion and technical innovation will

:

is

inherent

Canadian

tuations

If one looks at the rates of inin production and employment WV1XJ.1JI& the past six years in
during

in

in

the

the

level

nature

of

that fluc¬

economy

of

in other countries have

a

demand
marked

crease
iuuii

various
one

sectors

is

struck

.

^

of
bv

the
the

.

economy
increasing
j

importance of services as opposed

roughly 40% as large as the U. S. to physical goods in Canada's total
reversion
to
the
pattern
of market, about half as large as the economic
activity, and by the
earj|er periods of growth in our U.K. market, and about 90% as relative decline in importance of
history rather ihan the Continua- large as the German market. The agricultural as opposed to nonrepresent

additional'

production in war-devaand partly as a re-

during

dian market for

mav

vears

mirkpt

countries.
In
terms of 1955 imports, the Cana-

trade and development has taken

iron

areas,

goods
VCi
very

which

course
,

Hi_

puturfc

Tlie

petroleum

of

rapidly rising investment and con-

—

States, and this is for rather spedemand
on
Canadian recial reasons — increased military sumer demand on Canadian le
f
{n
Canada
and in- sources. The rate of growth of the

irrmortant

suit

#

Cana-

because

a

stated

snrvive ^and develop in am economy relatively open to import

dian goods of this type have be- sources has not only reduced our
come more exposed to competition dependence on coal imports but
from the resurgent industry of has also enabled us to supply most
Germany, the -United Kingdom, of the recent rapid increase in our
and
other
Western
European petroleum consumption from docountries. Indeed the only market m^tlc sources.
to which our exports of secondary
The 70% increase in the value
manufactured goods have not de- of Canadian imports from 1949 to

and

cultural

•

the home market. The rapid de- the share t of. agriculture and is the kind of growth which typivelopment of our western oil re- secondary manufacturing in total cally occurs in a gradually mainvestment outlays seems to have turing economy. In Canada's spedeclined, though investment out- cial circumstances, it has tended
lays in these fields have not to be overshadowed by primary
fallen in absolute terms. Invest- resource development, and at least
ment outlays in the field of busi- so far as advanced secondary
ness services, housing schools, manufacturing is concerned, held
hospitals, municipal hnd govern- back by import competition from
ment services appear to have increasingly ; efficient and lowclined since 1949 is the United 1955
reflects the pressure ot risen overall . at about the; same cost industries in the United
also

perhaps

but

has

years

rapidly

more

^
es
*^J^0wlu
disadvantage in competing for the
services of the factories of ProSuction. Furthermore, our _secon(^a.ry industries have had to

restrictions

the effect of import

ex-

pect further substantial increases
during
the next two or three

?«JnSSkS

recent years has put our sec-

gradually

suppliers./

#

clearly

*

duction industries — other coun- competition, without benefit of
tries have in fact been able ,to direct import restrictions ■ nnd
increase their sales to Canada Wlth gradually declining tariff
very substantially in recent years, protection. Nevertheless, the conand in certain fields to compete tinued growth in size and concenvery
successfully
with U.
S. tration of our population, the

The broad outline of Canada's
recent economic, development
which may be deduced from the
shifting composition of exports
ingly dependent on imports for puip and paper to the industrial in the field of primary and semir and imports is supported by other
its raw materials, Canada enjoys countries of Western Eurone have manufacturer industrial materials pieces of evidence. The percentthe advantages of being a near-by grown about as rapidly percent- and components, which have risen age of total fixed investment outsource of supply.
Intensified ex- age wise as they have to the United by less than 50% in value since lays going into the development of
ploration has resulted in the dis- States, but exports of foodstuffs, 1949, and in the field of fuels and the primary industries (other than
covery of important new mineral which were on a large scale in the lubricants, which have risen only
agriculture) and into basic facilideposits in Canada which have early postwar years, have declined about
15% in value. Domestic ties such kts'power, transport, and
greatly extended the range of our sharply as European agricultural capacity has grown substantially communications cannot be preknown resources.
production has recovered. Exports in recent years in the less spe-^cisely measured, but appears to
C.1.?>
r-'""-"'.of secondary manufactured goods cialized forms of processing and . have risen from something, like
The Export Record
to Europe have continued to de-. fabrication of such industrial ma- 30%
in'1948 to something; like
The effect of rising output of cline since 1949 partly owing to terials as metals and chegiicals for 38% in 1955. On the other hand,
dustrial

the

\

lac1 tal?Jf^nface L^ecent vear^

pro-

States suppliers enjoy in competing for the Canadian import mar.ket — proximity, similarity fit
tastes and designs, a substantial
degree of ownership or control in

takes

market how

States

tradePbetween

terms

nartip„kr

of total imports. Imports of various types of Canadian business

finished consumer goods seem to
three-fifths of our total exports, have risen almost as steeply and
compared
with 1 only
one-half to have increased appreciably as
six years ago. The main reason a proportion of total personal exfor our increasing dependence on penditure on goods. This appears
the U. S. market for our exports to substantiate the evidence from
that the great bulk of what we the export side that Canada is still
sell to the United States consists some way from having many ad0f exports of primary industrial vanced secondary manufacturing
materials
which
have
been industries;;capable of competing

urnfe^

'

The fact that exports have continued to bulk so large in Can-

imports,

relatively large

de-

Growth in Intermediate
Manufacturing

.

countries, Canada's exports to the cent years may be seen. Imports of portion of imports from Western
United States have risen by no investment goods, such as machm- Europe. Nevertheless, in spite of
less than 70% over the past six ery, electrical equipment, aircraft, the
advantages which United

whiie her exports to Western
Europe have risen only 20%
to expand as_rapidly, and
.Prmes an(j her exports to the remaining
have risen. This has provided a countries of the
world, mainly
strong incentive to expand Cana- primary producers,
have
risen
cially

m

our

ui

industries,

mand for whose products has been
growing at well above average
rates partly because of rapid technological progress, and industries
which have enjoyed a substantial
measure of tariff protection in the
domestic market. These industries
have expanded almost as rapidly
as the primary export industries.
•

.

accounted for only a modest pro-

new

31

effecl on domestic employment

?nc* bjcomes> on the demand for
imP°rts,

ternal

and
i- V

the country s exDosition
In the
PUJ)Uion' An yne

financial

,

Past» pf^.lod® 0 buoyant foreign
demand for Canada s exports have
beea periods of domestic pros-

^SStion" an?°ra^al^nvMtment

market for imports of secondary agricultural^ production and em- ?Xndi?ures havfin ti™ sCu
manufactured goods in Canada is ployment. Within the non-agricul- expenditures have hi turn stimuprobably about as large as it is in tural sector of industry, the larg- lated demand for unports, which
any country in the world, includ- est increases in volume of output have tended to rise particularly
ing the United States.
have been with few exceptions in sharply once e x p a n s i o n has
V
such fields as petroleum produc- reacned tne point ot lull utilizaChallenge to Favorable U. S. A. tion a„d re£ining electric power tion of domestic productive ca'
Position
generation, non-ferrous metal pacity. With imports rising more
During the
past six years, mining and refining, iron ore rapidly than exports, Canada's
United States suppliers have mining, primary iron and steel balance of payments has shifted
slightly increased their already production, pulp and paper, and
a current account deficit,
lar&e share of the Canadian im- chemicals. Production in these in- The financing of this deficit has
Por"t market, from 70% in 1949 to dustries has risen more sharply generally not been a difficult
73% in 1955. This increase would at the earlier stages of extraction, problem, however, since private
have been substantially greater initial
processing, and
inter-, foreign capital has tended to flow
had it not been for the develop- mediate manufacture than at the into Canada on a large scale durment of Canadian oil resources, more advanced stages of fabrica- ing such periods of growth, at—
Western European suppliers have tion into more .complex and dif- tracted in part by the prospective
not quite maintained their share ferentiafed manufactured goods, high returns from investment in
the Canadian market since In the field of secondary manu- the primary export industries,
1949, although m absolute terms facturing, increases in output have
Periods of declining foreign dethe value of their sales to Canada in most cases lagged well behind rnand for Canada's exports, on
has risen almost 60%. Indeed, im- primary industry, especially in
0ther hand, have generally
ports of investment goods .from labor-intensive fields such as tex- been periods of domestic stagnaWestern European countries in tiles and clothing, leather products, tion, falling incomes, and under1955
appear
to- have
roughly the food and beverage industries employment — the 1930s, for extripled in value since 1949 —• and so forth. The major exceptions ample. The decline in investment
though admittedly from a base-to this general pattern are the and consumption expenditures has
period in which postwar recovery motor vehicles industry, the elec- "f^atyona imports ^ha^on^dowas still at an early stage. In the
trical goods industry, and certain
Continued on naae
field of imported materials and branches of the chemical industry
P 9
_

,,

TT

«

The Commercial and Financial Chronicle

(1100)

32

of

specialize
suited
thus

production.

capital has declined

the inflow of

in the

two countries have a

to

sub¬

in

to

us

fill

and

resources

tain
less

cost

kinds

certain

if

than

the

gaps

ob¬

to

of

goods

at

we

tried

to

them
ourselves.
For¬
eign capital and know-how have
made it possible for us to achieve
a more rapid rate of development
produce

capital move¬
especially
on
net sales or purchases of se¬ than we could have managed on
eign debt.
curities. A third reason for Can¬ the basis of our own resources. We
Economy Shows Stability in Face ada's success in attracting foreign have had to pay a price for these
of Recent U. S, A. Recessions ^ capital
is that no attempt has advantages, of course, including ;
disadvantage
of
somewhat
been made to discriminate against the
These
interrelations
between
foreign investors and that there greater vulnerability to external
the state of export demand and
influences than in a more selfsharply or even been replaced by
a

reduction in Canada's for¬

net

the state of the domestic economy

and

have

finances

external

its

the

recent

in evidence during
postwar period.
On

the

whole,

foreign

been

clearly

demand

Canada's exports have been

for
high

throughout this pe¬
riod, although minor recessions
occurred
briefly in the United
<States in 1949 and in 1954.
The
andi

rising

•direct

of these mild U. S.

effect

recessions

exports

Canadian

on

small, merely a brief pause
in their underlying upward trend.
United States' demand for cer¬
was

tain

Canadian exports
without in¬

important

effect

stantial
ments

on

them,

between

have

been

kind

on

actions

no

restrictions of any

foreign exchange trans¬
since 1951.
Even during

the period of

exchange control no
restriction was imposed on trans¬
fers of investment income abroad.

in

Than

Past

contained

relative
importance of external trade in
our total
activity has not dimin¬
ished greatly over the years, but
both our economy and our trade
have
become
much
larger and
much

Foreign Capital Share Smaller

;g help

.

Although
the foreign capital
coming into Canada in recent
years has been large in absolute
amount, its significance can be
overestimated. Over the five-year

period ending in 1954, foreign re¬
financed about one-sixth

sources

outside

f

world

it would appear that Canada need

capital
formation
in have little fear of her
dependence
much smaller propor¬ on external trade.
tion than in previous periods of
fall in United States' demand was high investment such as 1926-30.
In certain industries, of course,
largely offset by rising demand
the proportion of foreign financ¬
from Europe. The secondary ef¬
ing has been much higher than
fects
on
Canadian employment
for the economy as a whole, no¬
and incomes were also relatively
tably in investment projects re¬
BROOKLYN, N. Y.—It has been
minor, and. appear to have been
quiring very large amounts of announced by John W. Hopper,
transmitted more through? changes risk
capital, advanced technology, Chairman of Group Five Savings
in business cop fide tic e than
and
assured
foreign
markets. Banks Association, that Gerald R.
through changes in export income.
Nevertheless, Canada's ability to Dorman, had accepted chairman¬
The effects on Canada's balance of
finance its economic development
ship of their first Annual Trustees
payments and foreign exchange; out of domestic
savings has been Day to be held in the Granada
position were negligible. It should
increasing. In addition, Canadians Hotel on Wednesday, Sept. 19.
not be concluded from Canada's
•continued

to

grow

terruption throughout these reces¬
sions, and, in 1954 at least, the

of

gross

Canada,

Group Five Savs. Banks
Day

have been investing abroad in not

insignificant amounts in recent
years, chiefly in the United States.
immune to external disturbances.
At the end of 1955, gross foreign
The fact is that rising world de¬
capital
investment
in
Canada
mand
for
Canada's
exports of amounted to about $14% billion,
primary industrial materials and gross Canadian capital invest¬
throughout the postwar period ment abroad to about $7 billion.
has suffered only the briefest and
Although Canada has become a
mildest of interruptions, and the
very
large international debtor
Canadian economy has therefore over the course of the
years, in¬
not been put to a really severe come from
exports of goods and
test. In the event of a major and services
has
risen
much
more
prolonged depression in the out¬ rapidly than transfers of interest
side
world,
of course,
Canada and dividends to foreign holders
could
hardly
expect
to
come of this debt: in 1955 such remit¬
through unscathed.
But in the tances amounted to only about 8%
face

the

of

rather

which

ances.

mild

have

disturb¬

actually

oc¬

of total

earnings from exports of
goods and services, compared with
the early 1930's.
this proportion

curred

in the postwar world, the
Canadian economy has shown a

about 34% during
One reason why

reassuring degree of stability and

has

Dorman

Mr.

pointment
meeting

a

ap¬

time ago and at
the Union League

in

with

Club

this

accepted

some

of

members

mittee announced

his

that the

com¬
morn¬

ing session would be a panel dis¬
cussion of savings bank problems

by

notable

group

trustees.

Those

a

bank

the panel

of savings
serving on

include:

Hon.

Frank F. Adel, trustee of
Ridgewood Savings Bank and
retired
Justice of the Appelate
Division.
..." ■:■ v£y'v?r^

the

Dr. Andrew G. Clauson, trustee
of the Richmond County Savings
Bank and

President of the Board

Education

of

York

six

on

of

the

City of New

occasions.

; On the financial side, Canada's
postwar experience as the recip¬
ient of ample inflows of private
long-term foreign capital has been

in marked

transferred

abroad, however, the

proportion

would

Reasons for

Capital Inflow

contrast with

the

ex¬

perience of most other developing
Countries, which have found lack
of adequate foreign exchange a
more

less

or

factor

continuous

limiting

their rate of economic

on

fallen

lower
Since

so

than

in

large

a

capital
comes

which
in

the

still

the

Dr.

the

much

be

early

1930's.

proportion of the
flows into Canada
form

of

direct

Harry S. Rogers, trustee of

Brooklyn

Savings Bank and

President of Polytechnic Institute
of Brooklyn.
H.

in¬

the

Bogart Seaman, trustee of
Roslyn Savings Bank, Vice-

vestment in

machinery and equip¬ President of the Seaman Motor
imports, a decline in the Car Company and Treasurer of
capital so readily are complex. long-term capital inflow tends to the County of Nassau.
One basic reason has been the be accompanied by a decline in
At the luncheon session, which
relative abundance in Canada of such imports, and the impact on
will follow a noontime reception,
our external financial position is
opportunities for investment
the well known journalist, econo¬
yielding either a high rate of im¬ less serious than would otherwise mist and
author, Henry J. Taylor,
It
should also be
mediate return or important long- be the case.
will give the address of the day.
noted
that
short-term
capital
term
advantages.
Another im¬
growth.
lias

portant
of

The reasons why Canada

been

able

reason

Canada

to

to

attract

is
the

the

outside

proximity

United

States

ment

movements

other

between

countries

recent

to

Canada

have

tended

Trustees

and

the

jwhich

close

own

or

cultural,

control. them, and

other companies,

vincial
their

as

well

as

lar

was

years

Staten

securities

in

the




member

Long Island and

will

attend

this

meeting.

They represent 3,082,973
depositors, with $5,977,303,000 in
savings accounts.

Now Lackner & Co.
of

Summary

e

name

Greenberg, Strong & Company,

"

Looking

back

on
r*r

capital

markets of the United States with
tittle
more
difficulty than
in

35

DENVER, Colo.—The firm

pro¬

municipal
govern¬
able to sell new issues

on

Island

the

maintained.

and

ments, are

of

business

from

savings banks

in

stabilize,

rather
than to disturb, our external fi¬
and financial ties between the
nancial equilibrium, though this
two countries.
The
capital re¬
was not always the case prior
to
quirements of many companies
Operating in Canada are directly September, 1950 when a fixed ex¬
financed by American companies change rate for the Canadian dol¬
and

the fashion to belabor the Great
Northern because of what is regarded as the sluggish action of its
stock in good times and in bad. Since this road has shown excep¬
tional growth in traffic and

revenues

in the past several years, it

may be that too much is expected of the stock, which, as a matter
of fact, has performed well in relation to the averages.
A few years ago

,

was not

recognized

this road

was

progressed.

such.

Beginning with the final half of 1950,

principal beneficiary of the movement of troops

a

and materiel to the

of

the growth character of the Great Northern

as

West Coast

the

as

Its gain in this period

temporary

and

nature

military build-up in Korea
largely discounted as being

was

Northern

Great

stock

treated

was

as

something of

a "war baby."
This notion came to be

that there

seen

dispelled, however, when it

to be no

was

later

was

collapse in the business of the Great

Northern with the cessation of hostilities in Korea.

As the follow¬

ing table shows, the trend of revenues and, more significantly, of
traffic (ton-mileage) (since the latter bears no distortion from

freight rate increases)

has continued upward and well ahead of

the

Northwestern

both

of

trend

the

(Indices Based
Gt. North.
...

1954...

1951—
1950—
1946

and

the

of

Class

the 1947-49 Averages
,

Nw. District

I

129

as

100)

1

Ton Mileage

,

*.

Class I

Gt. North.

Nw. District

Class I

113

119

107

103

104

108

96

91

119

116

105

100

115

...

...

...

121

108

12.9

—

1953—

1952...

on

Revenues

/

1955

District

shown below:

averages, as

118

125

117

118

109

105

101

120

115

116

113

111

107

110

108

106

100

z

102

97

81

83

85

92

;■

96

98

...

'

years, it

t

the

experi-

over

many

is clear that Canada's

trade and financial relationships

First National Bank Building, has
been changed to Lackner & Com¬
pany.

Hersh Lackner is principal

of the firm.
*

r

ii

In

view

has

more

this

of

been

evidence of

particular growth,

a

great deal

expected of Great Northern stock than has been

forthcoming, although some grudging and temporary recognition
seems to have been evident at this year's high
of 46%. At this
point earnings at the rate of about $5.25 per share annually were
capitalized at the somewhat above-average rate of nine times, but
this was modest compared with the corresponding multiples of
about 12 times for the Atchison and 11,# foj- the Uniop Pacific,

although it must be conceded that there is
considered in making such a comparison.

a

quality factor to be

In any

case, however, Great Northern stock did not tend togreatly overvalued in the upsurge of the rail market earlier
it has thus been steadier than some of the spdcial
growth favorites on the decline. While Atchison and Union Pacific,
for instance, are down 18% and 24% respectively from this yearis
high, Great Northern at 41 is down only about 13%, or right in
line with the decline of the Dow Jones Rail stock average. Thus.:
be

so

this year, and

far from

being a "bad
relative stability.

actor," Great Northern has shown creditable

With its price thus

only in line with the average and appraised
by the current market at only about 8 times estimated earnings of
$5.25 for this year, there is no apparent premium in the price of
Great Northern for the road's

growth potentialities, which admit¬

tedly are not being registered in results so far this year or indi¬

Fred Gretsch, Jr., trustee of the
sharply in recent Lincoln
Savings Bank and Presi¬
years
is that foreign investors dent of the Fred Gretsch Manu¬
have
only been
repatriating
a
facturing Company.
little over half of their earnings
Robert H. Pelletreau, trustee of
from investments in Canada. The
the Union Savings Bank of Patother half has been reinvested in
enterprises in Canada. Even if chogue and well known attorney
of Suffolk County.
the whole of their earnings were

resilience.

somewhat

become

a

To Hold Trustees

^experience in 1949 and 1954 that
her domestic economy has become

has

disturbances

short-term

without
serious difficulty. Assuming that
the world economy will continue
to grow and prosper without pro¬
longed and serious interruptions,
'•

Great Northern
It

why in recent
been able to

we

the

The

diversified. This may

explain
have

to

weather
in

economy.

more

years

By GERALD D. McKEEVER

of living.

own

our

of

best

are

we

earn

enabled

has

production

produce efficiently and
a
relatively high
Import trade

to

standard

With imports Canada. The interrelation of the
falling more rapidly than
ex¬ capital markets of Canada and
the United States is so close that
ports, the balance of payments
small changes in
has tended to strengthen on cur¬ comparatively
rent account. On the other hand, the spread between interest rates
mestic

on the
commodities

those

International Trade

on

the

over

economic develop¬

our

Export trade has led us to

ment.

Canadian Economy and Its

influence

profound

a

course

Bearing

Thursday, September 13,1956

.

with other countries have exerted

31

Continued from page

..

*

*+

—

cated in the full

year's estimate.

been "washed out" of the
porary

lapse but

a

The growth factor seems to have

price because of what

be only a tem-{
The increase of

may

none-the-less dampening one.

the revenues of the Great Northern of only about half as much as
that of the Class I average has
tion than the decline in the

principally to

an

probably commanded greater atten¬

road's earnings which has been due

excessively high rate of maintenance charges—-

viz., 38.9% for the first seven months of this year and 43.1% for

July as against 36.1% for the first seven months of last year and
33.7% for the calendar year. This has depressed the earnings of
the Great Northern unduly thus far in 1956.
It is

customary, however, for the Great Northern to reduce the

rate of maintenance during

the seasonal revenue bulge in the final

months of the year, and in 1955 this reduction was to the average
of 31.1%
seven.
or

for the final five months

A similar

50 cents per

estimated
the first

year
,

for the

months

cents less than for the

against 36.7%

as

for the first

would represent some $3 million

share after taxes

revenue
seven

cut this

on

the strength of $127 (million
Since earnings for

final five months.

amounted

to

$2.03

per

share,

or

only 24

corresponding 1955 period, there should be

ample reason to expect that 1955 full year
share should be equaled or even exceeded.

earnings of $5.27 per
The Great Northern

normally earns 55% to 60% of its year's net in the final 5 months.
Getting backto the longer term growth angle, it is to be
noted that the road's 1955 report states that 203 new industries
; were located on its lines last year, but which thus were a contrib

Among these was the $65
plant of the Anaconda Aluminum Co. which went
operation last August. Another longer term factor is the

uting factor for only part of the year.
million reduction
into

build-up of the over-all economy of the Williston Basin area. The
Great Northern has no oil lands there or elsewhere, but it does
serve

this

rapidly growing territory, and the road's

1955 report

also

points out that there was an increase last year of nearly 2,600
carloads of other than oil or agricultural products moved in and
out of the Williston Basin area.
In the

longer run much is also expected from power and irri¬

gation developments in the road's service territory. Last year the
Chief Joseph Dam began operation with five generators aggregat¬
ing 360,000 kw. capacity out of the total of 1,024,000 kw. scheduled
capacity. Also about one million acres are comprehended in current
irrigation projects. As to the future of iron ore, a large contributor
to revenue and not inconsiderable as an earnings factor, it is said
of high grade iron ore at points served by the
a life of about 60 years at
the current rate of withdrawal. To supplement this, the road is
that the deposits

Great Northern are estimated to have

collaborating with the University of Minnesota and the University
of North Dakota in exploring the possibility of developing certain
large taconite deposits not now regarded as commercial.
J-.

Volume

184

Number 5568

The Commercial and Financial Chronicle

33

(1101)

Continued from page 7 *

day

he can sell one beautifully
curving, wrap-around windshield
for

What's Ahead for Glass Industry
In
our

of

a

growing

the period foot.

economy

short.

was

This

shield

bers

a

period
in which this same
type of goods
was again in short
supply. So far

was

as

I

tion

know
was

nificant
turers'

this

not

inventory

reduc¬

accompanied t>y sig¬

reductions

prices.

As

in

manufac¬

10

feet
about

square

at

And

per

3xk

glass use is

Window
and

glazed

are

now

have

areas

feet.

containers

growing.

to

expanded

with

both

a

can

which

hold

openings in¬
tremendously,
but
the

in the replacement field not

creased

pletely solved is

modern

homeoWrier

We

are

of

we

most

Lower YearrRound Inventory;

,

■

I Costs

upon

sulating

;

units

window

twice

is

insisting
double-glazed
in¬
for both windows

of

use

and

In the last 15 years labor costs
i h£ive
naoveld -higher • and .have
tended r.to beeonje rigid due ltd
r

About

Not only has the

size of exterior wall

walls.: This*.

that

we

facilities

in

means

a

to

light
be adjusted

product
the

is

literally

corner

and

will

could

many

f

•i

the

of

be

new

habitable
one

of

mirror

*

world.

the

most

markets

in,

years.

Unbreakable

Unbreakable

Glass

glass

will

,

come

out of the extensive basic research,

just

being

have

applications

com¬

and

in

conducted

structure

allowing

of

users

.

licking the

We

are

metals in many areas

Electroluminescent

panels
for
the interiors of homes
and offices are already well
along
in the laboratories.
These panels

wareroom

petition

lighting

give off

convinced

a

low

intensity of

is

now

would open

ties

sales opportuni¬

Machinability is.

characteristic not normally asso¬

a

light

new

for jobbers.

where com¬
impractical and

ciated

with

when an electric field is
glass even ; though,
applied
sand blasting and ultrasonic
to" them
and
Represent an ex¬
glass will increase. The only way
tension of the mercury light conn methods can be used to fabricate
to successfully meet this demand
els it has been my observation in
cept to ; a
broader
application. glass today at a cost that is Satis¬
and
In the commercial building field -is- to ;Carry - well-roundedThat is,
the past, and guess for the
a < mercury
light has a factory for very special purposes;
future, the use of glass has been
nothing readily accessible .stocks.
unbreakable
glass i would
much lower intensity than an in¬ and
that i periodsvof' recession and inless
than
phenomenal.;' Twenty ; Advances in automobile styling candescent
lamp but the increased likely be machinable to an extent
.ventory reduction are not likely
years ago the idea of modern sky¬ point to still larger windshields
approaching that of the metals.
area from which light
is emitted
to see significant reductions in
with more complex curves such
scrapers completely enclosed^With
results in a high light value for
These are only
manufacturers' prices. It seems to
a few of
the
glass was almost as fantastic as as the Twin-wrap which will ap¬ the area to be
me that this very fact eliminates
illuminated. The many glass products which hold
an artist's conception of a modern
pear on some 1957 models.
This most
one of the historical hazards of
practical base on which to promise of making our way -of
city made weatherproof with a trend again points up the role of
apply electroluminescent coatings living still better and which could
carrying large inventories. With
the depot system to help protect
gigantic glass canopy.
is glass: In the future, glass will
add
the possibility of severe financial
up
to increased sales and
Most of you are familiar with the jobber from additional invest¬ serve not
loss at least minimized, it would
only as a decorative and profits for you. Perhaps some of
ment in space and from hazards
and have
played sin important
durable
surface
for
walls
and them are what might be termed
be advantageous to examine the
of obsolescence. It also points up
part in the expanding use of glass
ceilings but will also provide a in the "fantastic" stage. But re¬
potential
benefits
of
carrying
the fact that forward planning on
in buildings.
It started back in
base for coatings which will pro¬ member, if you will, that in the
well-rounded inventories at all
inventories is essential in the re¬
duce soft light for room illumina¬
fast changing era
times. It has been demonstrated the Thirties when structural glass
in which we
became a must for store fronts. placement field.
tion.
live, the fantastic ideas of yes¬
repeatedly in the recent past that
we
moved
into
the
Then
full
Glass Heat
those people most
terday are
the products which
successful in
Technological Progress and
vision front. Literally millions of
-Glass covered with electrically make our lives more fruitful and
moving a large volume of goods
Research
square
feet of glass moved
are those who have the goods al¬
conductive coats has been
used enjoyable today.*
As
glass
manufacturers,
we
through your hands in changing
ways available at the point of sale.
know that if we are to continue successfully as a source of heat.
Conclusion
This can be pointed up by our the "Main Street of America." To¬
In the future,
electrical energy
to give you more and better glass
In conclusion
I
want to
em¬
own reactions.
When we get the day another great opportunity lies
will generally become
lower in
products, we must be vitally con¬
ahead. The, use of glass in build¬
urge to buy a new car we want*
comparative cost #nd this method phasize that we — glass jobbers
cerned
with technological
prog¬
for coftrblled 'heating of build^ and glass manufacturers —•( ^re¬
quick. * All other ;thihgs b$ixify ings is not only moving outward,
but alio upward.
ress. The industry has been and
members of one
of the - nation'*?
equal, we will buy it from the
is
making significant strides in ings increasingly common. When
With curtain wall construction
dealer who has the car in the
yet
most dynamic' and
this happens, coated glass will be oldest,
this field.
color and with the accessories we and spandrel glazing, the glassprogressive industries. The con¬
the most practical form for sup¬
want and not from the dealer who
clad building is a reality.
You
Automation; Not New to Glass
plying heating elements of in¬ tinued progress of the flat glasshas to order it from the factory. can imagine the square footage
finite
life, completely enclosing industry depends upon each of »s>
You have all heard of automa¬
I cannot emphasize too strongly potential
and decorating the rooms without doing our full share in our par¬
offered
by
buildings tion as
being the latest techno¬
fields.
We .asv, manufacrexteriors are
the remotest possibility of having ticular
completely
my conviction that, to be success¬ whose
logical development in industry.
turers
must
continue to supply
ful in the extremely competitive faced with glass.
the- occupants
Manufacturers
burned - by acci¬
Actually, we have had automation
you with new and improved prod¬
dental contact with hot heaters. markets of today adequate inven¬ have the product you heed to cap¬
J in the flat glass industry, for some
ucts; promote new markets and
tories of quality merchandise hold ture this business. .It is a heatBoth the lighting and heating
time. In fact, ours was one of the i
consumer demand;
and give you
the key to that .accomplishment., strengthened, specially processed
panel ideas present potential out¬
Jfirst industries to use automation
the installation,
fabrication and
V'arebaekipg* this cohvictioh by : glass in a wide range of attractive extensively. More than 30 years lets of truly significant propor-'
other
technical
help, you need.
appropriate; action in our own colors. Marketed under such trade
ago
automatic
machinery
for tions for the glass jobber.:- Lit¬ This I know we will continue, to
names as Spandrelite and Huetex,
company.
■- • *
• - r.,
millions
of
square, feet
drawing sheet glass was devel¬ erally
do.
';
••
•
it will open vast markets for you.
; t
oped and
put
into
operation: could be "involved in supplying
Relate Inventory to Sales and
You as flat glass jobbers must
Of course, merchandising and These
this: type of glass to- home and
processes were revolution¬
/
Days' Supply
•'
continue, individually and collec¬
installing these products involve ary developments which replaced commercial buildings.
":
V
tively through your excellent as¬
Inventories should be viewed new methods, techniques and. set¬ many tedious manual tasks. Au¬
The conservation of energy is
not in the light of the total dollars
ting memb e r s. Manufacturers tomation, as it is truly defined, an increasingly important prob¬ sociation, to preach the gospel of
the use of more and more glass.
invested in merchanidse but have worked out these details suc¬
has, also been a factor in. plate lem.
The
fossil
fuels, such as You must back the
rather in light of the number of
missionary
cessfully and will provide you glass operations. In these, auto¬ coal,- may be «partially replaced
work with aggressive selling prac¬
days' supply of each item, based with the technical data you need. matic
production from batch, mix¬ in the future as a source of en¬
tices.
As the versatility of glas!*
on current sales, which you
carry
Yes, today the list of fabricated ing to twin-grinding' has been ergy by nuclear fuels but even
in your place of business. As with or processed flat
increases
and
it
is made
into
glass building achieved. But that is not the final these have finite limits.1. Increas¬
the auto dealer, the supermarket,
competitive with
and
products is long and impressive. step. Right now plans are being ingly, thinking men are return¬ products
and the corner drugstore, turn¬ It is
impressive hot only in its made to extend the twin principle ing to and emphasizing the sun superior to other building ma¬
over is your key to more profits.
terials, you should continue to ex¬
variety, but even more so in the to polishing. When this has been as bur
principal source of avail¬
And turnover, in any line, will be indications of the volume which
pand your progressive merchan¬
perfected, and the day should not able energy.
And in this area
dising policies and carry amplegreater- if- inventories are both will be required. While I'm talk¬ be too far
away, .there will be glass will play a most important
inventories.
When the new glass*
ample and varied.
ing on this subject Of variety, it a continuous ribbon of glass about part. Glass will be used as a bar¬
products
such.. as lighting
and
Talking about, increased inven- might be well to mention" some 1,700 feet long from the lip of the rier to
allow
the
entrance
of
tories might seem strange in view different
heating panels reach the market,,
types of glass products tank to the inspecting and cut-off radiant heat
into
enclosures
of the great shortage of flat glass which
you must be prepared to handle*
you might handle rather end. In addition, important prog¬
where
it
is
absorbed and
also
them. Only by being prepared for
products in the recent past. Per- easily and profitably. I refer to a ress is
being made in- automatic as a barrier to prevent the escape,
and alert to the literally limitless
haps, though, if flat glass inven¬ growing number of building prod¬ inspection, handling, sizing and of heat
by convection and con¬
tories had not been liquidated so ucts made from fiber glass. These
applications of glass, will you b<*
packing of glass including the use duction once it has been captured.
able to capitalize on the golden,
abruptly and completely in 1954, include air filters, screening, and of feedback mechanisms.
There
are
already examples of
}
the shortage of the recent past plastic reinforced panels for such
opportunities which await you in
As you know, work in the glass the use of glass for this
purpose]
might not have been nearly so se¬ installations as porch roofs and research and development fields in some of the sunnier climates the Glass Age which lies ahead.
vere.
However,, through the breezeways.
For example, fiber has led to the: development of to heat homes and water for do¬
greatly increased production facil- glass screening seems to be an products which can be mass pro¬ mestic use.
Two With E. E. Mathews
'
ities of all flat glass manufactur¬ ideal addition to your lines. When duced and handled
(Special to The Financial Chronicle)
profitably by ■> There are certain applications
ers, you should be able to build
you sell glass for windows, what
the flat glass jobber.
In the past where the temperature reached
BOSTON, Mass. — Robert J.
up and maintain the point-of-sale
is
more
natural
than
such
items " as
selling these ' included
by direct sunlight is not suffi¬ Harkins and Leonard G. Hill have
inventories.'necessary to assure screening for the same unit?
double-glazed units, heat-tem¬ ciently
high.
Under these cir¬ become connected with Edward
your full share of the increasingly
pered glass and more recently, the cumstances it is desirable to in¬ Mathews Co,, 53 State Street.
Automotive Replacement Trade
competitive markets.
curtain wall panels.
crease the temperature by collect¬
Many of you jobbers have a big ;
Today
glass research has
in ing the sun's rays over a large
Growth in Use of Glass - V
H. L. Robbins Adds;
stake in the automotive field. And
process
several
products which area and then concentrating the
There are many of us here who this will continue to
(Special to The Financial Chronicle) «
grow. In re¬ .could heln make your tomorrow energy to a smaller area. Such re¬
can remember
back to the days, cent years, the automotive re¬
WORCESTER, Mass.—Victor B.
really golden. These products are flecting mirrors will grow in im¬
say thirty years ago, when plate
placement trade has expanded not 'quite unusual in nature.
When portance and most will be made Stevens, Jr. has been added to
and window glass for glazing were
only in unit volume, but more perfected,
they
could
increase from glass.
In the not-too-dis¬ the staff of H. L. Robbins & Co.*
practically your only products. significantly in the total footaee your volume greatly, carry you
Inc., 40 Pearl Street.
tant future such collectors will be
If you managed to sell three or of glass. For
example, since 1945 into new and profitable fields, able to furnish considerable quan¬
-

bindings upion contracts. *. As a re¬
rigidity at higher lev¬

;

sult of this

doors and windows.
treatment

there

For full wall .that demand fpr service on curved

,

sliding glass
doors of .many different styles.
are

„

.

.

.

.

•

•

.

.

.

.

-

.

*

'

.

-

-

"

•

•

*

.

-

.

-

.

four

boxes

maybe

a

it
.

7

energy

today into the
glass and the; exten¬
to
maintain sion of its properties by new com¬
style and an expansive feeling positions.
This product has long:
in buildings while at the same
time been talked about but it has only
avoiding the undesirable features been recently that some of the
of too much heat and too much
puzzling secrets surrounding the
variation in light intensity. You very old art of glass have been
can
imagine the ever-broadening sheared away.
An unbreakable
markets that this type of product glass of this nature could be put
will create.
:
into * direct
competition
with,

our

of the country.

can

be

manually or automatically
just what the user desires.

be

builders

fabricating plants
and by establishing fully
stocked,
centralized depots in various parts

much

opacity

many

only major problem

problem with expanded

glass plus special
installation. We also have jalousie
as

feel

the

whose

radiant heat

around

that of storage.

facturing cost.

case

product

will

-

amounts

Here

This

breakage

plate and sheet.

the

m .*

-

extensive

to

minimum. These, while bulky,
be handled with relative ease.

all know,
products, la¬
bor is the highest single manu¬
in

.

throughout

This

either

manufacturers.

as
the result of
packing
shipping research carried on
by the glass manufacturer. Auto¬
motive glass comes from the fac¬
tory packed in specially designed

and

person
square

still

m

nificant

window.

and

and

being consumed at the rate of

plate

for

#

Products

window

solved

Window glass

was

a

also

Glass

challenging

mission

and

but

Flat

most

of tomorrow is the variable trans¬

Many of these problems have been

was

immediately followed by

$50.00.

as

backlight have cre¬
ated packaging, storage and han¬
dling problems—not only for job¬

By 1954, however, the story
bit different.

much

It is true that the curved wind¬

Steadily Growing Economy

liquidation

as

New

The

of

window

mirror

a

was

or

two

glass
per

relatively good deal.

those

days total domestic
sumption of window glass
about
and

3xk

and

house,
In

con¬
was

feet

per

person

plate glass about

one

square

square




the

average

automobile

shield *and

backlight

creased

70%

over

produced

wind¬

have

in size and

in entirely

and

literally make you a king¬
building circles. Some of
products
are
still
under
wraps, but there are others about
which we can
talk to give you

in¬

pin

are

these

shapes.
dealer for¬

new

Where the jobber or
merly sold two pieces of flat safety
glass for about $7.00 in 1946, to¬

in

some

indication of the tremendous

potential of glass.

of

tities

power

competitively in
In the

Joins

parts of the world.

some
more

-

distant future, following the

inevitable
power

degradation

sources,

collectors

will

of

other

enormous

glass

furnish

very

sig-

Reynolds Staff

(Special to The Financial

Chronicle)

MINNEAPOLIS, Minn.—Gerald
M.

Fine

is

now

affiliated

with

Reynolds & Co., 629 Second Ave¬
nue,

South.

34

The Commercial and Financial Chronicle... Thursday, September

(1102)

1

t,

Continued

$30 Million Issue of
New Yoit

from

'

'

■

' •

•

;■

,

.

r

.

13,. 1956
*

■

.■

.

sponding week in 1955, except the Northwestern, - All reported
increases compared with the corresponding week in 1954.
; ; >

5

page

A

'

Business Failures Down in

City Bonds

Holiday Week Ended Sept. 6

Commercial and industrial failures declined to 196 in the
holiday week, ended Sept. 6 from 237 in the preceding week,
reported Dun & Bradstreet, Inc. At the lowest level this year,
the toll was down slightly from t]he 205 in the comparable 1955
week, but remained well above the 168 in 1954. Failures dipped
6% below the prewar level of 209 in the corresponding wee* of
1939.
A-AA.:.7 A'A;', ;.vA ~
J>7./ y-A.:ALiabilities, of $5,000 or more were involved in 172 of the
week's failures as compared with 203 a week ago and 182 in the
previous year. Small failures, those with liabilities under $5,QUO,
decreased to 24 froi* 34, but edged above the 23 of this size last
year. Sixteen concerns failed with liabilities in excess of $100,000
as compared with 17 in the preceding week.
A7;/:/y:.:
v; AH of the week's decline occurred in manufacturing, down to
„

Offered to Investors

recovered from the five-week steel strike which cost

estimated

an

billion, "Steel," the well known metalworking magazine,
reported on Sept. 10.
The national metalworking weekly said that reports from
awarded on Sept. 12 an issue of
every sector of the country indicate that industry is in high gear
$30,000,000
City
of New York
and working out any shortage problems without seriously dis¬
General Obligations due Sept. 15,
rupting production.
1957 to 1971, inclusive. The group /
How sharp the rocevery has been is shown by "Steel's" in¬
submitted a bid of 100.1499 for a
dustrial production index which is based on steel production,
3.30% coupon, representing a net
electric power output, freight car loadings and auto assemblies,
interest cost of 3.2785%.
One month after the strike (week ended Sept. 1), the index
;
The bonds are being reoffered
trend line leveled off at 151% of the 1947-1949 average.
This
at
prices scaled to yield from
compares with 148 during the last week in June when the mills
2.25% to 3.30%, according to ma¬
began strike preparations and 91 for the first week of the strike.
$1.4

City Bank
of New York and associates were
First

The

National

.

turity.

Associates

offering in¬
Trust Company;

Bankers

clude:

or

Guaranty Trust Company of New

of

Bank

Chicago;

and

Trust

Kidder,

Fenn

Weld & Co.; Shields & Company;
Mercantile
Trust
Company,
St.

Louis; Stone & Webster Securities
Corporation; The First National
Bank of Portland, Oregon; Ladenburg, Thalmann & Co.; Ira Haupt
& Co.; W. H. Morton & Co. In¬
corporated; Clark, Dodge & Co.;
Dean Witter & Co.; Kean, Taylor
& Co.; First of Michigan Corpora¬
tion; Estabrook & Co.

Middle

States to

the

make

Public

offering

of

$70,000,000

Co.

3%%

de¬

bentures

due
Sept.
1,
1981
is
being made today (Thursday) by
a
nationwide underwriting group
of 150 members headed by Gold¬

posite

Sachs & Co. The debentures
priced
at
100%,
to
yield
3.875%. The sale of the deben¬
man,

the

duction in

The
a

debentures

entitled

are

to

5%

each

of

of

the

debentures

for

the years

1967-1972, in¬
clusive, and not less than 7%%

for

each

inclusive.

of

the

1973-1980,

years

In addition to the

man¬

datory payment, the company may
at its option make a further sink¬
ing fund payment for those years
in

an

amount

not

exceeding the
mandatory payments.
For
the
sinking fund the debentures will
be redeemable at

will

also

100%

and they
redeemable at the

be

steelmaking

lower

Net

rate

of

interest

with

is based

debentures will

the

general

funds

an

tons of ingot and steel for castings

industry's

ingot production

rate

(revised)
the

for

annual capacity of 128,363,090 tons

on

For the

that

like week

a

month ago the rate

as

a

weeks

in

1956

Automotive output for the latest
Automotive Reports," dipped again.

was

16.9% and

by 4,142 vehicles.

In the corresponding week last year 79,940 cars
assembled.

15,038 trucks

were

Last week the agency

United States.

reported there

This compared

were 18,705 trucks made
with 14,563 in the previous

week and

&

Canadian output last week was placed at 2,600 cars and
1,347
trucks. In the previous week Dominion plants built 239 cars and

15,038

a

year ago.

"

944 trucks.

trucks, and for

borrowings
at
Aug. 31, 1956, and for general
corporate purposes, including the
improvement,
replacement
and
expansion of plants and other fa¬

$9,000,000

cilities.

"

comparable

1955

week,

2,624

cars

and

Electric Output Higher in Past Week
The amount of electric energy distributed by the electric

light
and power industry for the week ended
Saturday, Sept. 8, 1956,
was
estimated at 10,955,000,000 kwh., according to the Edison
Electric Institute.
This

was

an

previous week.

increase

of

610,000,000 kwh. above that of the

It increased

800,000,000 kwh., or 7.9% above the
comparable 1955 week and 2,147,000,000 kwh. over the like week

Car

Forms Phoenix Sees.
E. Cohn is engaging in

—

a

Charles

and

securities

business from offices at 556 Bloomfield Avenue, under the

name

Mr. Cohn

previously with Berry & Co.




of

was

freight for the week ended Sept. 1, 1956,
cars, the Association of American Railroads an¬
This was a decrease of 5,356 cars or seven-tenths
of 1% below the
corresponding week in 1955, but an increase
of 95,874 cars or 13.9% above the
corresponding week in 1954.
Loadings in the week ended Sept. 1, were 13,953 cars or oneeighth of 1% above the preceding week.
All districts reported decreases compared with the corre¬

-

wholesale. orders

of

with

A'"

A'

"• A

;• ..-A

A' '.A/A;-A" A;.v

.

.

continued

to

expand ihis

*

women's

principal

gains

clothing

fall

in

better

rise

this

cloth , coats,

and

continued

dresses,

to

The call for girls- skirts and sweaters rose substan¬

sportswear,

-

for

tially. Interest in men's fall apparel was close to that of the pre¬
ceding week, but slight increases occurred in the buying of wbi^e
dress shirts and sports jackets*
Orders for boys' trousers and
dungarees climbed noticeably.
Textile wholesalers

,

reported

.

seasonal rise in

a

purchases of

best-sellers were broadcloths, print cloths, and
sheetings.
While bookings inwoolens- climbed noticeably, vol¬
ume in worsteds and carpet wools fell somewhat.
An upsurge in

cotton gray goods;

the

buying of woolen corduroys, flannels, and velvets occurred.
acetates expanded slightly, but the total dollar
fabrics declined mod¬

Orders for rayon

volume of man-made fibers and industrial

erately.

;A/A/;7/''-A/:Ay-////.

.

V V/^A'/.JAA;,- AA/AAA-.A

A

•

increased call for automatic laundry equipment,
a reduction in orders for major appliances;
the buying of television sets was sustained at a high level. . While
interest in bedding and upholstered living room furniture mounted
Despite

an

wholesalers reported

this week,
what.

volume in case goods and occasional tables fell some¬
was a moderate decline in orders for carpets and

There

draperies, but sales were above those of a year ago.

A

of canned fish and vegetables slackened this
week, but interest in canned citrus juices was high and steady.
While buyers boosted their orders for eggs and butter/volume in
cheese was moderately reduced.
The call for poultry, pork and
lamb was below that of the previous week.
A
/.
Wholesale buying

Wholesale

revenue

A"-

■'

major appliances.

Commodity Price Level Shows
in Week

Little Change

Loadings for Sept. 1 Week Declined Again

Loading of
totaled 784,366
nounced today.

•1;,v/V.

slight volume reductions were reported in food products, linens,

in 1954.

BLOOMFIELD, N. J.

Phoenix Securities.

the

volume

The

week,

output dropped below that of the previous
while truck output decreased the past week

...

week, and moderately exceeded the similar 1955 level. Purchases
of fall apparel, furniture, and some textiles rose appreciably, but

week,'according to "Ward's

to

domestic

;

Re-orders

The past week's production total of cars and trucks amounted
62,626 units, a decrease of 14,312 units below the preceding
week's output, states "Ward's."

-meat this, w,eek;

Wholesale Orders Expand

pro¬

to

261

aggregated

Housewives boosted their purchases of fresh

rise in the call for butter, eggs and cheese.

U. S. Car Output Declines Again in Latest Week

Gamble and used for the contem¬

short-term

■■

of Jan. 1, 1956.

415,000 tons. A year ago the actual weekly production
placed at 2,309,000 t.ons or 95.7%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual capacity of 125,828,310 tons as of Jan. 1, 1955.

chemical dissolving pulp produc¬
tion unit at the company's mill at

which

Mar--- -'

There was renewed interest
in canned fish, but volume in canned fruit juices and vegetables
continued to decline. Dairy departments reported an appreciable

week ago.

of

Foley, Fla.; for the retirement of

4

gains reported in bedding and upholstered chairs. While the call
for curtains, and linens. increased moderately, volume in floor

compared

as

sale

$40,000,000

equalled that of last year; best-sellers

Despite increased interest in automatic driers and televjbsiph
sets this week, the buying of major appliances was below that of
a year ago.
Volume in lamps and lighting fixtures rose appreciably.
Purchases df'ftfrniture remained at a high level, with substantial

duction

plated construction of

a

levels.

the

Procter

of

men's clothing

in

fall "slits ahd sports coats. There was an increased call for
men's and women's shoes, and sales exceeded comparable 1955

were

all-time high.

added

the
be

Volume

was

in the

proceeds from

the

Shoppers responded favorably to back-to-school sales promo¬
tions; the buying of boys slacks and sports shirts and girls' dresses
and accessories, rose sharply.
Retailers reported a noticeable risje
in interest In women's woolen skirts, fall coats and millinery.

Around

This would

announced

volume of retail trade in the week ended this

2 to 6% higher than a year ago, according to
estimates by-Dun & Bradstreet, Inc.

and other forms of

ton,

a gross

Institute

98.7% of capacity and 2,154,000 tons

The

before

1, 1961.

total'dollar

poultry sales were high and steady.

lent to 2,429,000

and

a

Steel

inyentories, as volume in new and used passenger cars :•

100.1% of capacity for the week beginning Sept. 10, 1956, equiva¬
•

deemed from

Sept.

at $58.83

and

Total retail trade

coverings, was below that of the previousweek.

;
Last week's car
week by 10,170 cars,

borrowed at

difficult to get

back-to-school meiv-

Wednesday

in

scrap

American Iron

option of the company at prices
ranging from 105.50% to 100%.
The debentures may not be re¬
money

more

are

on

this week.

apparel

operating rate of steel companies having 96.1% of the steelmaking;
was scheduled at an average of

sinking fund to retire not less

than

sheets

which

fall

continued to climb.

capacity for the entire industry

first

public
offering of securities of Procter &
Gamble since prior to the passage
of the Securities Act of 1933.
represents

on

The

are

tures

steel

nine major geographic

expanded sbftiewhat, and was moderately above that of the similar
week a yeas^ago. Automobile dealers reported a noticeable re¬

tight supply are structural shapes,
heavy plates and oil country tubular goods. Hot-rolled carbon bars
(particularly the large ones) are rapidly joining them. Tightening
of demand for sheet is squeezing out production of
strip mill plate.
The magazine said steel prices are nearly stabilized, with most
adjustments stemming from the new labor contract completed.
In the week ended Sept. 5, "Steel's" price
.composite on finished
steel remained at $137.75 a net ton. Also unchanged is its
price com¬

37/8% Debentures at Par
Procter & Gamble

hot-rolled

finished

Six of the

29.

centered primarily

and women's

The

40% of the weight of each auto is cold-rolled sheets.

from

19

Consumer buying

1957 model sales. Look for 1.8 million to be sold in the last quarter.
A revived demand from the automobile
industry would call

Procter & Gamble Co.

from 62, while sharper declines brought failures in
States down to 16 from 27, and in the East

Atlantic

Central' to

chandise

Significance: The auto industry is ready for a flying start on

the supply of cold-rolled carbon steel sheets.

but increases from the 1955

The tolls in retailing and service

.

year ago.

on

year ago,

Slight Gain in Retail Trade

Unsold used cars total about 700,000, compared with 785,000

heavily

a

regions reported fewer failures than in the similar week of 1955.
The only increases from last year were reported in the Mountain
and Pacific States; The West South Central toll held even with
a year ago.
1
'
"

only about 12 cars each by next week-end. Their stocks of less
than 500,000 will be far under the record total of more than
850,000 piled up in May and will be some 25% under those a year

Goldman, Sachs Offers

58

South

North

of

a

as

except the East South Central States. The toll in the
Atlantic States dipped to 73 from 74, and in the Pacific

regions

The nation's 40,000 auto dealers will have average inventories

ago.

failures

many

noticably exceeded those of last year.
1
1
T ■.
Failures were lower during the holiday week in all geographic

.

&

as

levels occurred in all other lines.

Steel ingot production is a good indicator of the strength of
demand, the metalworking authority said. In the week ended
Sept. 9, production hit 98% of capacity (2,412,655 net tons), 1 point
above the previous week.
Some of the high steel production rate is to satisfy current
consumption. But a big part of the demand comes from order
backlogs, need for steel for new models of products and buying
for inventory adjustment. This shows confidence in the future.
The auto industry has come into the steel market in
only a
small way in preparation for its new models, but "Steel" warned
that if it jumps in heavily, a real squeeze on supply i will develop.

White,

Co.;

&

had

declines.

Co.;

Phelps,

The publication said the only element of the index not up to
the pre-strike level is automotive. But with steel opera¬

near

approaching 100% of capacity, electric power output surpass¬
ing the 11 billion kw-hour mark for the sixth consecutive week,
and freight carloadings still climbing, gains have more than offset

Company

Peabody

36, and in the trades where the toll among retailers fell
wholesalers to 15 from 23. Construction
rose-"to 30
from 25, and commercial service failures
climbed to 24 from 17.
Neither manufacturing nor wholesaling

to 101 from 136 and among

failures

tions

York; Smith, Barney & Co.; The
Boston Corporation; Harriman
Ripley & Co. Incorporated;
Halsey, Stuart & Co. Inc.; The
First National Bank of Chicago;
C. J. Devine & Co.; Kuhn, Loeb
&
Co.; Continental Illinois Na¬
First

tional

26 from

The second quarter average was about 153.

the

in

i

The

7

A

general

commodity price level held in a narrow range
during the past week. The Daily Wholesale Commodity Priee
index, compiled by Dun & Bradstreet, Inc., registered 236.53 on
Sept. 4. This compared with 296.40 a week earlier, and with 277.74
on

the

comparable date

a year ago.

Grain markets were somewhat irregular last

generally finished strong to higher.
buvina

based..on

the "belief

that

week but prices

Wheat soared sharp gains on

the

soil

bank

program

would

olume

184

Number 5568

The Commercial and Financial Chronicle

...

(1103)
result

in

much

a

smaller

ports have not been
exerted

with

an

wheat, with

next

crop

extensive, the

added bullish

Although wheat ex¬
plan in wheat

year.

new

influence.

export trade

Rye

advanced

in

support influenced by the small
yields
indicated in both this
country and Canada. Cash corn prices re¬

covered most of the
previous week's losses

is for

sections of the

many

belt.

Oats

retarded harvest

a

"But there

over

were

comparatively steady with
crop marketings.' Daily
average
futures on the Chicago Board of
Trade increased
slightly to 45,300,000 bushels from
43,800,000 the
revious week.
-

.

/,

,

."

.

1

*

sthe benefits of automation

up somewhat,
trading in the-domestic
flour market was at an
extremely low ebb during the past week.
Buyers generally were
working against old balances, and
making
eplacertfent purchases,
only- sparingly;'. Following moderate- delines at mid-week, coffee
prices, ralliech.to close^

unchanged from

I

.,

Activity in the cocoa market
Qved upward aided
by" better

perked:
manufacturing interest

rices for butter cocoa.
51 bags, showed little

prices
higher
totaling 411,-

Warehouse stocks of
cocoa,

-

.

,

,

'^^^f^^?11^6^'18 1)0^ true. Increases
hpur-ar^ much

bylB^a^

r

not

—

-.:

Equipment,
other

more

more

non-labor

;«

v

Of

course

is by now

prices-trended lower, with
fairly
depressing influence. *"
•
'
.Vy
Spot cotton prices moved
slightly lower toward the close folowing a firm start. Early
nfavorable growing
ent
forthcoming

conditions

month

a

ommerce"

ompared

A

ago.

put

with

the

,

>

With Gallagher-Roach
*

man.

;

at

official

;

Davis vis

with

Gallagher

worn;j

Food

treet,

Inc.,

1

cent

Price Index

Food

reversed

Price

Turns

Slightly Higher

to

Anderson

become

Hansen

Colo.

has

Quainton
connected

&

—

been

staff of Colorado

vTwo With Vercoe

Co.,

124

has

The

Colo. — David Van
become affiliated with

First

International

added

to

the

Investment Co.,

KANSAS
L.

Cress

CITY, Mo.

is

with

—

Bache

ents
nd

Dun

the

total

sum

in

meats

Bradstreet
of the

general

hief function is to

is

not

Food

a

Price

Index

clearings

this

week

will

show

With Hamilton Managem't

(Special to The Financial Chronicle)

DENVER, Colo.—Ralph F. Arndt

;

v

increase

KANSAS

CITY, Mo.—Kenneth

P. Barnard is

now

with Hamilton

aSgem^nt °Corporaticm'h950^road- ManagemfntCorp., Grand Avenue
way.

Bank

Building.

United

States

repre-

Its

compared

for

year.

center

there

gain for the week ending Friday of 16.4%.

a

For the week ended

Sept. 1 there was an increase of
2.9%,
aggregate clearings for the whole
country having amounted
$20,326,135,147 against $19,748,678,312 in the same
week in

he
o

955.

Outside

of

learings in this
ork

Reserve

this

city

center

there

was

gain

a

of

3.5%'," the

bank

showing an increase of 2.4%. In the New
(including this city) the totals show an

District

mprovement
in

nd

and

ichmond
istrict
f

9%.

and

Louis

he

Dallas

eserve

the

totals

District

of

the

gain

a

in

and

of

the

3.0%,

Atlanta

in

the

Reserve

Chicago Reserve District suffers a decrease
Minneapolis Reserve District of 0.1%, but the
District

has

to

its

credit

Reserve

District

by

3.5%

in

and

increase of

an

City Reserve District the totals

0.1%.

larger by 3.0%,

are

the

San

Francisco

District 3.3%.

Department stores sales
he

record

10.0%

The

Reserve

the Kansas

n

District

Reserve

of

2 2%

t*

of 2.4%, in the Boston Reserve District
of 8.7%
Philadelphia Reserve District of 3.5%. In the Cleve-

the

Reserve

Federal

Reserve

956, increased 2%

on a

Board's

above

country-wide basis

index

those

of

of

the

week

as

taken from

ended

Sept.

1,

the

like period last year. In
he preceding week,
Aug. 25, 1956, an increase of 8% was reported,
or the four weeks ended
Sept. 1, 1956, an increase of 5% was
eported. For the period Jan. 1, 1956 to
Aug. 25, 1956, a gain of
% was registered above that of 1955.

According to the Federal Reserve
re

sales in New York City for the

956, registered
ast

%

of

In the preceding

year.
was

decline

a

recorded.

ain of 4%

was

For

1%

recorded.

956, the index recorded

below

week,

the

Board's index, department
weekly period ended Sept. 1,

four

those

Aug.
weeks

of the like period
25, 1956, an increase of
ended Sept. 1, 1956, a

For the period
a

rise

of

4%

Jan.

above

1, 1956 to Sept. 1,
that

of

the

corre-

ponding period in 1955.
Business
n

the

same

volume

period

was

year

a

about

6

to

ent store executives, as reported in

The

han in

sharp drop
the

same

was

week

8%

lower

last 'week

than

ago, according to estimates by departthe New York

"Times."

attributed to cooler and damper weather
of

1955.

Another contributing factor

was

he Jewish holidays, which were later last
year.
Few

eption
ooler

departments reported increased business.
was

improvement

weather.

'

in

sales

I




of

fall

goods

The
as

a

only
result

ex-

of

of

now

asso¬

Exchange.

Reynolds Adds to Staff
(Special to The Financial Chronicle)

vello has

of

Mass.

—

Rosario No-

been added to

Reynolds

Street He

&

Co.,

19

'-*•

saving^

'

the staff

Congress

^formerly with Jay

W. Kaufmann & Co.

.'I?

which it is possible to obtain
weekly
11.9% above those of the
corresponding week
Our preliminary totals stand at
$16,517,915,792 against
14,758,124,492 for the same week in 1955. At this

s

are

/

learings will be
ast

Detroit Stock

BOSTON,

year ago. Preliminary figures
compiled by us based upon
elegraphic advices from the chief cities of the
country, indicate
hat for the week ended
Saturday, Sept. 8, clearings for all cities

f-tbe

members

ciated with Carr & Company, Pe¬
nobscot Building, members of the

.

prices at the

a

Building,

(Special to The Financial Chronicle)

Over Last Year

an

Co.,

1000 Baltimore Avenue.

foodstuffs

raw

cost-of-living index.

Clearings Show 11.9% Increase

Bank
ith

It

show the general trend of food

holesale level.

Bank

Wholesale

price per pound of 31

use.

S.

-vi-

H

are1,

with Vercoe & Co., Hunting¬
Bank

and Fred G. Smith

Joins FIF Management

stand

&

Irene

(Special to The Financial Chronicle)

William
&

—

DETROIT, Mich.—Alvin R. Ellis

(Special to The Financial Chronicle)

A.

Ohio

Frank S. Smith

Two With Carr & Co.

Corp.,

With Bache & Co.

Arthur

and

the New York Stock Exchange.

First National Bank Building.

lambs. "

The

now

ton

DENVER,
Bay

-..-.'d?

Inc., 509 Seventeenth Street.

-

'Commodities advancing in price this week
were flour,
corn,
ye, oats, butter, sugar,
milk, coffee, cottonseed
oil?:-cocoa, and
ggs.
On the down side were
barley, beef, currants, prunes, hogs,
nd

H.

—

(Special to The Financial Chronicle)

downward trend of last week
and
at $6.05 on Sept. 4. This
marks a drop of
.3% from $6.19 at this time last
year, and a decline of 9.7%
rom $6.70 on the
corresponding date two years ago.
ose

E.

has

DENVER,

Index, compiled by Dun & Brad-

the

connected
with
Roach and Company,

(Special to The Financial Chronicle)

' *

\

(Special to The Financial Chronicle)

With Colo. Inv. Co.

revious, and with 14,721,000 bales produced in
1955. Trading in
14 spot markets
increased with reported
purchases totaling
80,400 bales, against 86,300 in the
preceding week, and 145,100 in
he corresponding week a
year ago.
Volume of CCC loan entries
ontinued to expand.

The Wholesale

-

Lincoln-LeVeque Tower.

With First International

of

12,585,000 bales. This
13,552,000 bales a month

of

Ohio—Richard J.

now

Ev'erhart

North Bright Avenue.

he

Wholesale

Reed

end-August

forecast

(Special to The Financial Chronicle)

COLUMBUS,

the "run out of- customers"*
argument

definitely shop

WHITTIER, Calif.
W.

sharp reduction

a

,

has joined the staff of
King Merritt & Co., Inc., Woodruff
Building.

skilled management and sundry
factors — and such things cost

Joins E. H. Hansen

of

preliminary estimate by the "Journal

crop

the

show

/.

-Jennings

often to be attributed to better

(Special to The Financial Chronicle)

govern-

forecast would

crop

ram

Building.
\

.

(Special to The Financial Chronicle)

COLUMBUS,

eavy receipts a

attributed to reports
and to the belief that the

!•;

SPRINGFIELD,,) Mo.—Harry P.

.

was

with R. J.

now

>

and

change from last week, and
compared with
56,621 bags a year ago. Cash lard
was
steady in moderate trad"ng. Export business in lard was small
but foreign
inquiries were
eported on the increase. Ilog

strength

■.

With King Merritt

,

realizing that if

in output. p

•
.

•V It is unfortunate that "productivity" is so often
taken to be in fact
"productivity of labor"—which
,

The recovery was
influenced'iirgely
trade buying and
^nd^iC;
reports indicating
growing prospects of aVaterw^
ront strike after the
Sept. 30 deadline:-■' Vfc ■'
ago.

O. Kachelmacher is

Steichen & Co., Roanoke

they succeeded, they would soon run out of cus¬
tomers."—Emil Rieve, Vice-President of AFL-CIO.

-

Although prices firmed

week

MINNEAPOLIS, Minn.—Thomas

are
many employers in our country
forgotten that higher productivity must
be joined
by- higher wages, shorter hours and
lower prices. These
employers are trying to keep
for themselves, in the form of
higher profits, all

only moderate pressure from new
purchase of grain and soybean
,

(Special to The Financial Chronicle)

who have

producer marketings
Prospects for the new

as

continued inadequate for
processor needs.
crop remained good but the
outlook

With R. J. Steichen

Shop Worn!

sympathy^

some

35

The Commercial and Financial Chronicle

36

...

Thursday, September 13,1956

(1104)

* INDICATES

in

Now

ADDITIONS

SINCE'PREVIOUS
•

ITEMS

ISSUE

REVISED

.

lnc.y Grand Junction,

Abundant Uranium,

Colo.

ceeds—For

(letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price—10 cents per share.

0*eb. 23
mon

mining

Proceeds—For

M.

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.

None.
&

(9/18)

Co., Riverdale, III.

Acme Steel

investment

Office—319 Uranium

expenses.

of common stock (par $10).
amendment. Proceeds—For
part payment for the assets of Newport Steel Corp. and
for working capital.
Underwriters—Blyth & Co., Inc.
and Merrill Lynch, Pierce, Fenner & Beane, both of
Aug. 29 filed 400,000 shares
be

Price—To

supplied

New York.

by

,

,

.

Aerovias Sud Americana, Inc.
Aug. 10 (letter of notification) $100,000 of
ible subordinated debentures due 1971 and
of common stock

6% convert¬
35,000 shares

Price—Of debentures, 100%;

(par $1).

Proceeds—To pay outstand¬
general corporate purposes. Busi¬

and of stock, $3 per share.
ing obligations and for
ness—A cargo air

Underwriter—Beil & Hougn,

carrier*

Inc,, St. Petersburg, Fla.

(9/20)
of convertible
to be offered
for subscription by common stockholders of
record1
Sept. 19 at the rate of $100 of debentures for each 23
shares of stock held; rights to expire on Oct. 3.
Price—
To be supplied by amendment. Proceeds—To repay out¬
standing obligations and for expansion program. Under¬
•

Anheuser-Busch, Inc., St; Louis, Mo. (9/20)
Aug. 30 filed 328,723 shares of common stock (par $4).
Price—To be supplied by amendment. Proceeds — To
Estate of Edmee B. Greenough, deceased. Underwriter—

Los Angeles, Calif.
June 15 filed $4,099,300 of 5% subordinated debentures
due July 1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1). The debentures
are being offered for subscription
by preferred stock¬
holders at the rate of $10 principal amount of debentures
for each preferred share held, while the common shares
are being offered
for subscription, by common stock¬
holders at the rate of

•Co.,. both of New York,
•

Allentown

it Almont Mines, Inc.
1
Aug. 17 (letter of notification) 110,000 shares of common
.

(par one cent). " Price—15 cents per share. Pro¬
mining expenses.
Office—415 /Pitkin Ave.,
Grand J unction; Colo. Underwriter—N one;,

stock

ceeds—For

A American Federal Finance Corp., Killeen, Texas
Sept. 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
share. Price—$55 per unit. Proceeds—To purchase used

and to extend the company's operations into
new car financing.
Underwriter—None. J. J.

the field of

•

/

V

American Insurance Co.,

Newark, N. J.

(9/21)

r

caT'taJ stock of American Automobile Insurance Co.
Louis, Mov on a share-for-share basis. This offer
deposit of at least 1,400,000 shares of
Kidder', Pepbody & Co. will head
group of dealers to solicit tenders. Tu6 Offer is expected
of

about Sept. 21 to Oct. 11.

„

American Insurors' Development Co.
10 filed 400,000 shares of common stock (par $1).
Price
$2.50 per share. Proceeds — To expand service
—

Birmingham, Ala.

Underwriter
Odess, Martin & Herzberg, Inc., Birmingham, Ala.

—

•

American Investors Corp., Nashville, Tenn.
July 13 filed 4,962,500 shares of common stock (par $1),
of which 962,500 share are to be reserved for the exercise
of options by company employees and 4,000,000 shares
are

to be offered

publicly. Price—$2

purchase all of the

vestment

Tennessee

Co.,

be

to

Underwriter—None.

rarily deferred.
•

per

share,

talesman

organized under
Offering—Tempo¬
/v:-

...

•

Co., Holyoke, Mass.
Aug. 20 (letter of notification) 3,000 shares of common
stock (par $20) being offered to common stockholders
(other than those residing in California)
of record
Sept. 4, 1956, on the basis of one new share for each
shares held

(with

an

oversubscription privilege);

rights to expire on Sept. 17, 1956. Price—$50 per share.
Proceeds—For working capital. Underwriter—Estabrook
&

Co., Boston, Mass.

»

American Telephone & Telegraph Co. (10/2);
Aug. 22 filed 5,800,000 shares of capital stock to be of¬
fered for subscription
by stockholders of record

Sept.

14, 1956 at the rate of
held; rights to expire

'

<

'

•

one

on

share for each

new

Nov.

5,

1956.

stockholders. Price—-To

Proceeds—For general corpor¬
purposes./ Office—4616 Park Ave., Ashtabula, Ohio.

be filed by amendment.
ate

Underwriter—None.
Associated

Grocers,

Inc., Seattle, Wash.

April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.
Underwriter—None. *

(9/17-21)

A Astron Corp., East Newark, N. J.

Van

Alstyne, Noel & Co., New York.

April 30 filed 2,000,000 shares of common stock (par $1).

Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes. Underwriter — To be
named by amendment.
Atlas Credit Corp., Philadelphia, Pa.
11 filed $600,000 of 6 % convertible

June

debentures due June
amount.

15, 1968. Price—100% of principal

Proceeds—To retire indebtedness of the

com¬

Carles A. Taggart & Co., Inc., both of Philadelphia, Pa.,

10 shares

Price—At

Weill, Blauner & Co., Inc. of New York.

and

Sewing Cenv**'c» Inc., Miami, Fla. (9/20) „
Aug. 27 filed 180,000 shares df common stock (par $1),
of which 120,000 shares are to be offers for account of*
selling stockholders. Price—To be supplied £? amend¬
Atlas

ment. Proceeds—For

writers—R.

par

general corporate purposes. UndeiV

S. Dickson & Co.,

Audubon Park Raceway,

Charlotte, N. C.
!

' w

stockholders

For
T.

at

of

rate

0.46875

of

a

purposes.

share

for

Proceeds—

Underwriters—Berwyn

Moore & Co.,

New

Louisville, Ky.; Gearhart & Otis, Inc.,
York, and Crerie & Co., Houston, Tex.

Automation
market.

Proceeds—For

investment.

Price—At

Office—Washing¬

ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.
Automation

Industries

Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and
Treasurer.
Bahamas

'

*

Helicopters, Ltd.

Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares of com¬
stock (par one cent). Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
mineral properties.
Office—1424 Pearl Street, Boulder,
Colo. Underwriter—Lamey & Co., Boulder, Colo.
Feb. 23

mon

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price — 10 cents per
share. Proceeds -— For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkenmayer & Co., Denver. Colo.

(10/11)
cumulative preferred stock
(par $100), of which 1,430 shares are to be offered for
subscription by common stockholders (other than East¬
ern Utilities Associates, the parent) on the basis of one
preferred share for each common share held as of Sept.
11, 1956. Proceeds—To reduce bank loans. Underwriter
—To be determined by competitive bidding.* Probable
bidders: W. C. Langley & Co.; Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler; Kidder, Peabody
& Co.; Harriman Ripley & Co., Inc* Bids—To be- re¬
ceived up to 11 a.m. (EDT) on Oct. 11 at 49 Federal
Street, Boston, Mass. -• V ;! :
J
•

Btackstone Valley Gas

'•?/*

(9/17-21)

July 13 filed 300,000 shares of ordinary (common) stock

Corp., Boston, Mass.
notification) 34,140 shares of common
(par 10 cents). Price—At market. Proceeds—For
mining expenses. Office — 4 Liberty Square, Boston,
Mass. Underwriter—Kimball & Co., New York.
Bonanza Oil & Mine

July 30 (letter of
stock

Calif.
222,222 shares of common
(par $1X Price—$1.35 per share.
Proceeds—To
pay obligations, purchase equipment, etc.
Office—1308
No. Patt Street, Anaheim, Calif.
Underwriter—J. D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.
Brown Investment Co., Ltd., Honolulu, T. H.
July 11 filed 60,075 shares of common stock (par $1).
Price—At net asset value, plus a selling commission of
7Y2 % of the offering price. Proceeds—For investment.
Aug. 13 (letter of notification)'

stock

(par £1 sterling). Price—To be supplied by amendment.
—
To purchase a 49% stock interest in Aero

ment Co., 833

expansion program.

•

Bangor Hydro-Electric Co.
21 filed 52,796 shares of common stock (par $15)
common stockholders
of record Sept. 11, 1956 at the rate of one new share for
each six shares held
(with an oversubscription priv¬

being offered for subscription by

Boston

Pittsburgh

San Francisco

Private IVires




to

all

offices

Chicago

Cleveland

ilege); rights to expire
share.
tion

on Sept. 25.
Price—$31.50 per
Proceeds—To retire bank loans and for construc¬

program.

New York.

Dealer-Manager—Smith,

Barney

and

York,

promoters. Price—At par ($1 per

&

Co.,

share). Pro¬

equipment, exploration, drilling, working
capital and other * gene^- Corporate purposes. Under¬
For

—

writer—To be named later.

Mining Co., Denver,

Cadwell

Colo.v~^^

Aug. 13 (letter of notification) 600,000 shares of cCmmQn
stock (par one mill). Price—50 cents per share. Proceeds
—For
equipment, payment of current liabilities and
working capital. Office—2450 Kendall St., Denver, Colo.

Jewell Co., Denver,

California Electric Power Co.

Sept.

Colo.

(10/9)

10 filed $8,000,000 first mortgage

bonds due 1986.

bank loans and for new construc¬
Underwriter—To be determined by competitive

Proceeds—To
tion.

repay

Probable bidders: Halsey, Stuart & Co. Inc.;
Co.; Merrill Lynch, Pierce,/Fenner & Beane
& Co. (jointly); Blyth & Co., Inc.;
The First Boston Corp. and Salomon Bros. & Hutzler
bidding.
Shields

&

and Kidder, Peabody

(jointly); Lehman Brothers; White,
Expected to be received on Oct. 9.

Weld & Co. Bids—

'it Carmel Petroleum Co.
Aug. 24 (letter of notification) 300,000
stock (par 10 cents).
Price—$1 per
property.

Aug.

Philadelphia

Underwriters—Kuhri, Loeb & Co.,

McDonald & Co., Cleveland, O., for
public offering. Stockholder offering is not underwritten.
Burma Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
shares are to be offered publicly,, and 100,000
New

For

York.

Underwriter—Brown Manage¬

Alaska St., Honolulu, Hawaii.

it Brush Beryllium Co. (10/2)
Sept. 11 filed 400,000 shares of common stock (par $1),
of which 375,000 shares are to be offered publicly and
25,000 shares are to be offered for subscription by com¬
mon stockholders.
Price—$10 per share. Proceeds--For

Technics, S. A., for approximately $500,000, to make a
$200,000 down payment on three S-58 Sikorsky helicop¬
ters to cost a total of $1,025,000, and to retire $175,000
of indebtedness. Underwriter—Blair & Co. Incorporated,

New York

diversified, open-end investment company

of the management type.

Proceeds

New

& Electric Co.

Aug. 15 filed 25,000 shares of

Underwriter—Wayne

Development Mutual Fund, Inc.

Aug. 24 filed 300,000 shares of common stock.

America

(letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For min¬
ing expenses.
Office—290 N. University Ave., Provo,
Utah. Underwriter—Thomas, Loop Go., New Orleans, La.

ceeds

Price—10 cents per share.

general corporate

both of New York.

June 29

shares to

•:

.

Inc.

July 13 (letter of notification) 600,000 shares of common
stock (par 10 cents) to be offered for subscription by
common

& Co.,

and Allen

Business—A

subordinated

to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and

•

certain
Corp.;
about $3,000,000 for capital improvements; and for other
corporate purposes. Underwriters—Lee Higginson Corp.

Bridgford Packing Co., Anaheim,

Sept. 5 (letter of notification) 45,000 shares of common
stock (par 10 cents). Price—To be supplied by amend¬
ment. Proceeds—To selling stockholders. Underwriter—

each share held.

American Pad & Paper

three

insurance firm.

of the

Ashtabula Telephone Co.

Proceeds

stock of American In¬

common

Life -insurance

law.

Price—20

share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by

pany

^

Feb.

—To

Ariz.

policies issued by Public Life Insurance Go.

of St.

—

Phoenix,

Co.,

Atlantic Oil Corp., Tulsa, Okla.

is conditioned upon
Automobile stock.

Office

Finance

cents per

,

Aug. 31 filed 1,750,00Q shares of capital stock (par $2.50)
<o be offered in exchange f6f outstanding 1,750,000 shares

business.

Public

stock (par $25) to be offered to

(9/26)

stock (par
$1.25). Price—To be supplied by amendment. Proceeds
—To two selling stockholders. Underwriter—Kuhn, Loeb
& Co., New York. - >
/
; :

paper

Arizona

Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance

Sept. 5 (letter of notification) 10,000 shares of common

*

Portland Cement Co.

Fain is President. * *

share for. each 10 shares held

stock, $12.50 per share. Proceeds—To repay bank loans.
Underwriter—None. Statement effective July 10. "■■■

Smith, Barney &

Sept. 5 filed 200,000 shares of class A common

car

one.

July 10; rights to expire on Sept. 25.
Price—
For debentures, 100% per $100 principal amount; for
of

as

•

ceeds—$2,687,500 for existing mortgage loan to
subsidiaries and
guaranteed by Barium* Steel

Bentonite Corp. of

Arden Farms Co.,

>1.%'"

★ Barium Steel Corp.
?.«<
Sept. 11 filed $6,500,000 of 5%% convertible debentures
due 1968.
Price—To be supplied by amendment.
Pro¬

Higginson Corp., New York.

Lee

Allegheny Ludlum Steel Corp.

Aug. 31 filed approximately $16,377,000
subordinated debentures due Oct. 1, 1981

writers—The First Boston Corp. and

payments. Pro¬
expansion of plant and for advances to, and
in stocks of, subsidiaries.
Underwriter—

($100 per share) payable in one or two

shares of common
share. ^Proceeds—
development of oil and gas
Office—Osawatomie, Miami County, Kansas.

expenses

incident to

Underwriter—None.

(9/24-25)
sinking fund debentures
shares of common stock
(par one cent) to be offered in units of $50 of debentures
and 10 shares of stock (neither of which will be separ¬
ately transferable until Aug. 1, 1958). Price — $50 per
unit. Proceeds—About $4,100,000 will be used to acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related reel
Centers

Corp., Philadelphia, Pa.

July 30 filed $8,000,000 of 5^%
due Aug. 1, 1971, and 1,600,000

estate

activities,

and

for

general

corporate

purposes.

Volume 184

Number 5568

Underwriter

Blair

—

.

.

The Commercial and Financial Chronicle

.

Co. Incorporated,

&

Philadelphia

Proceeds—To selling stockholder

and New York. Latter has, agreed to purchase an addi¬
tional 300,000 common shares and reoffer them to per¬
sons
selected by it at $1.10 per share.
Offering—Ex¬

pected latter part of September.
Central

•

Mutual Telephone Co.,

Inc.

Aug. 22 (letter of notification) 21,025 shares of common
stock
mon

(par $10) being offered for subscription by com¬
stockholders at the rate of one new share for each

two

shares

held

of

Aug.

29; rights will expire on
Sept. 17. Price—$12 per share. Proceeds—For working
capital, etc. Office—Manassa, Va. Underwriter—Folger,
Nolan, Fleming-W. B. Hibbs&Co., Inc., Washington, D.C.
as

(Ray, Daisley & Co.,

Uiiderwriter—None.

Inc.)

^

v'-y

(1105)

supplied by amendment. Proceeds

—To repay bank loan, for expansion and working capital.
Underwriter—H. M. Byllesby & Co., Inc., Chicago, 111.

Office—Youngstown, Ohio.
Chemical

■'«>-■;r■.

.

■

Process Co.

cor¬

15,000 shares of common
(par $1). Price—At market (estimated at $6,625
share). Proceeds—To go to Alexis E. Post, San Fran¬
cisco, Calif. Underwriter — Stone & Youngberg, San
Francisco, Calif.

Century Controls Corp., Farmingdale, N. Y.
Aug. 27 filed 120,000 shares of common stock (par $1).
Price—At market (over-the-counter price in New York).

Rainier, Ore. ;
Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share). ; Proceeds—For acquisition of
a
plant site, construction of a mill building, purchase

i'i

Century Controls Corp., Farmingdale, N. ¥. *
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and

expansion; equipment;
C Underwriter—None.

development;
porate

and

purposes.

other

■

Aug. 17 (letter of notification)
stock
per

ic Chinook Plywood, Inc.,

NEW

of

machinery and equipment, and as
Underwriter —/Industry Developers,

Inc.

'•

"

•

Chisago City Telephone Co.r Chisago, Minn.
Sept. 6 (letter of notification) 1,000 shares of common
stock to be offered to stockholders. Price—At par ($25
per share). Proceeds — For new construction.
Under¬
writer—None,
Christian Fidelity Life Insurance Co.
July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders.
Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested in securities common to
the life insurance industry.
Office—Waxahaehie, Tex.
Underwriter—None, sales to be made through Albert
Carroll Bates, President of the company.
C. I. T. Financial Corp.
May 17 filed $75,000,000 of debentures due Aug. 1, 1971.
be supplied by amendment.
Proceeds—Pri¬
marily for furnishing working funds to company's sub¬
sidiaries.
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman Brothers, all of New York.
Offering—Temporarily postponed.
,.
Price—To

•Citizens Credit Corp., Chevy Chase, Md.
(letter of notification) 15,500 shares of class A
stock (par $12.50), to be offered for subscription

CALENDAR

ISSUE

installation

operating capital.

Century Food Markets Co. T9/24-28)
Aug. 30 filed $2,000,000 of convertible subordinated de¬
bentures and 40,000 shares of common stock (par $1) to
be offered in units of $50 of debentures and one share
of stock. Price—To be

and

37

Aug. 27

common

?Septemberl4-( Friday)
Hawaiian Electric. Co., Ltd
(Dillon; .Read & Co.

Inc.

,

and Dean Witter &

Co.)

*—

Stanley »& Co.)

Morgan

by

Common

stockholders—to be underwritten

(Offering to

(Bids

$3,000,000

National Sugar Refining Co

•

94,803

;

"

11

'i

(Offering

stockholders—underwritten

to

A & B Coin,
Quail

by

Blyth

W.

Astron

•

(Monday)

Corp.
Alstyne, Noel & Co.)

Inter-Mountain

1

Investment

Co.)

October
Madison

Debentures

,

(Offering

...

(M.

Shelley,

Reiter Co.;

J.

General

;■

Investing

National Pool Equipment
(Mid-South

Securities

Roberts

Corp.)

Co.;

&

and

and

Landstreet

&

Kirkpatrick,

Oil

Inc.)

$600,000

& Gas Corp

Steel

(Blyth

&

...

Co.

.Preferred

&

Merrill

and

Lynch,

Intermountain Gas Co.Weld

Petroleum

Marine

i\

Pierce,

(Offering
Weld

Trust

.Units

Weld & Co.)

and Stone

Co.

Lane.

(Johnson,

Marsh

(Bids

United

Interest

of

$700,000

by

Space

Inc.)

Co.,

&

noon

White,

debentures

Bonds

—

(Bids

(Stone

Weld

Securities

St

Weld

(Kidder,

Co.)

Peabody

&

Glore,

Co.;

Forgan

and

Anheuser-Busch,
(Lee

Atlas

XX "./X/

Smith,

&

Co.;

V.

be

Barney

&

Co.)

(Blair & Co.

V

M.

Byllesby

&

Incorporated)

Co.,

Inc.)

$2,000,000

(Vickers Brothers)

General

Guaranty

of

debentures

and

1

(Offering to stockholders—underwritten by* Grimm &
Co.)

/
(Clark, Landstreet & Kirkpatrick, Inc.)
United Cuban Oil, Inc
Fuller &




Co.)

First

Service

to

Boston

National
(Offering

of

$2,500,000

$583,120

Common

March 23 (letter of notification) 5,912 shares of 6% cu¬
mulative preferred stock being offered for subscription

Corp.....—...—.Common
be
underwritten
by The
Robinson-Humphrey Co.,

stockholders—to
Corp. and the

Bank
to

(Thursday)

Detroit

stockholders—to
Stanley & Co.)

by stockholders of record April 16, 1956 on a pro rata

,

basis; rights to expire on July 2, 1956. Price—At par ($50
share). Proceeds — For working capital. OfficeEquitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.

shares

30,000

...

per

—Common

underwritten
263,400 shares

be

by

Morgan

Underwriter—None.
Consolidated Oil Management

Public

Service Electric
11

a.m.

(Wednesday)
&

.Bonds

Gas Co....

EST)

$50,000,000
.

Common

D.

Gas

(Offering

(Bids

$299,950

Kusan, Inc.

(S.

Mobile

November 14

Common

$6,000,000

Commonwealth, Inc., Portland, Ore.
1

Co., Inc,_.Com.

Co

v

(letter of notification) 50,000 shares of common
stock being offered initially to stockholders (par $2).
Price—$5.50 per share.1 Proceeds—To be added to gen¬
eral funds and for expansion of business. Office—5579
Pershing Ave., St. Louis, Mo. Underwriter—Edward B.
Jones & Co., St. Louis, Mo. X'.

$28,000,000

EDT)

a.m.

November

$300,000

Insurance

11

Inc.)

stock

Commercial Life Insurance Co. of Missouri

(Tuesday)

EDT)

a.m.

working capital. Underwriters

Boston

of New York

June 21

Preferred

$8,000,000

Devall Land & Marine Construction

Co.___.__Common

—Bonds
11

First

Corp. and Kidder, Peabody & Co.,
(latter handling books). Offering—
Indefinitely postponed.
both

170,000 shares

Co

(Bids

be

Debentures & Com.

40,000 shares of

:

will

(Monday)
Debentures & Common

Century Food Markets Co
<H.

October 30

(Bids

Capital

September 24

short-term loans and for
—The

Ohio Power Co

(Friday)

—To

'

Power

Credit Co.

July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
be supplied by amendment.
Proceeds—To repay

Bonds

Consolidated Edison Co. of New York, Inc.__Bonds
i
(Bids to be invited) $40,000,000

Ohio

program.

competitive

'

Commercial

(Tuesday)

Service

by

Oct. 3.

$2,500,000

(Tuesday)

(Bids to be invited)

The

$16,377,000

Co.

offer—Kidder, Peabody & Co.
dealer-manager) 1,750,000 shares

(Exchange

-

by

Common

Centers Corp.

Preferred

Electric Co

EDT)

a.m.

Public

Illinois

Central

Debentures

underwritten

Inc..

September 21

11

October 23

Higginson Corp.) 328,723 shares

Insurance

(Thursday)

October 16

and

Sewing Centers, Inc.____________..Common
(R. s. Dickson & Co.) 180,000 shares

American

11

construction

Underwriter—To
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley &. Co.
Bids—Expected to be received up to 11 a.m. (EDT) on
determined

be

158,025 shares

Public Service Co. of Indiana, Inc.
(Bids to be invited), $30,000,000

(Thursday)

stockholders—to

Corp.

EDT)

a.m.

Columbia

Proceeds—For

Common

______

11

4

^Columbia Gas System, Inc. (10/3)
Sept. 6 filed $25,000,000 of debentures, series G, due 1981.

$7,500,000

'

Boston

Bonds

_

$8,000,000

(Wednesday)

Blackstone Valley Gas &

...Debentures
& Co.)

September 20

First

(Bids

:

—

"

(Bids

Allegheny Ludlum Steel Corp......
"/ V

'

and

$20,000,000

Hallgarten & Co.) $20,000,000

common

Lieberknecht, Inc.

10

October

'

(Offering to

Co.;

Debentures

&

Barney

October

White,

and

$60,000,000

(Tuesday)

.Preferred

Corp.

Co., Inc

(Smith,

$3,600,000

Telegraph

invited)

be

(Bids to be invited)

$50,000,000

Walt Disney Productions
Wilson &

stock

(Monday)

California Electric Power Co

Bonds

White,

8

October 9

:-V'X.vX \X

$35,000,000

Corp.;

Transmission Co....

Webster

&

invited)

be

•

Baking Co., Atlanta, Ga*
Aug. 17 filed 26,768 voting trust certificates, each repre¬
senting the beneficial interest in one share of common
stock (no par), to be offered for subscription by holders
of outstanding common stock and participating preferred
stock of record Sept. 10, 1956 on the basis of one voting
trust certificate for each eight shares of either class of
such stock then held (with an oversubscription privi¬
lege); subscription warrants to be good for a period of
three weeks. Price—$25 per share. Proceeds—To reduce
bank loans.
Underwriters
The Robinson-Humphrey
Co., Inc. and J. H. Hilsman & Co., Inc., both of At¬
lanta, Ga.

Lincoln)

Debentures

Bonds

-- ...

Halsey, Stuart & Co. Inc.)

/Tennessee Gas

shares of

•

Common

of

—..Equip. Trust Ctfs.
to

(Bids to

(Wednesday)

EDT)

noon

Securities

Webster

135,000

principal

debentures, due
June 1, 1966 being offered for
subscription by folders
of common stock at the Tate pf $1,30
fort each share

.

Co.

Co.

> Tennessee- Gas Transmission Co..,
&

Trust

(Thursday)

Southern Bell Telephone &

-.^Preference

September 19

(Stone

$25,000,000

First

and

October

$2,240,000

Aircraft Corp

"

Debentures

Virginian Ry. i

EDT) $4,000,000

Southern Pacific RR. Co.
-

The

and

October 4

(Offering to stockholders—to be underwritten by Harriman
Ripley & Co. Inc.) $33,091,500

■

.

Debentures &

Co.

&

$109,245.50

Springs Aquatic Center, Inc;
Aug. 23 filed 500,000 shares of "cPmmoh stock** (par 10
cents). Price—$1 per share. Proceeds—For swimming
pool and related activities, bowling alley, site preparation
including parking, and land cost ($95,000). Underwriters
—Arthur L. Weir & Co. and Copley & Co., both of Col¬
orado Springs, Colo.
;■; -:'y

(Wednesday)

Co

Steel

(Cruttenden

of

convertible subordinate

Colorado

be underwritten by White,
Webster Securities Corp.)
shares > ;r •

(Bids 11 a.m. EDT)

6%

York, N. Y. Underwriter—None.

Class A Common

Southern Nevada Power Co.;
,

...Debentures
$1,500,000
X'vX!

Columbia Gas System, Inc

(Bids

X

&

October 3

85,266 shares

*

Scripto, Inc.

yXX'X.

$3,500,000

Co.)

&

Allyn & Co., Inc.)

stockholders—to

to
&

..Common

stockholders—underwritten

to

Hammill

(letter
of

Corp.
notification)

.held as of Aug. 24 (with an oversubscription privilege);
rights to expire on Sept. 14. Price—At 100% of principal'
amount.
Proceeds—For working capital, construction,
purchase of Dover plant, etc. Office—90 Broad St., New

Debentures

California.

441,250

$2,500,000

about

Metal Hydrides, Inc
(Offering

Common)

of

Fenner

_Notes & Common

St Co.)

C.

(A.

(Dillon, Read & Co., Inc.) 500,000 units

v>-.

Co.

4

amount

Transcontinental Gas Pipe Line Corp....Common

Fortune Petroleum Corp...
.Common
I (Willis E. Burnside St Co., Inc.)$300,000v

(White,

June

about $580,000,000

shares

400,000

Beane)

;

(Tuesday)

underwriting)

Four Wheel Drive Auto Co

...Common
Inc.

Co.,

Oil

100,000 shares

September 18 (Tuesday)
Acme

&

Telegraph Co...__Common

stockholders—no

(Shearson,

...

A(J. R. Williston & Co.)

to

Douglas

"

Nortex

Common

(Offering, to public and to stockholders—underwritten by
Kuhn, Loeb & Co. and McDonald & Co.) $4,000,000

Common
Clark,

Sons, Inc., a subsidiary, to retire debentures
subsidiary's preferred stock; for expansion and other
Underwriter—Johnson, Lane, Space
Co., Inc., Savannah, Ga.
;
^

corporate purposes.

68,334 shares

Brush Beryllium Co

>

$294,750

Co

Co.

H. Claussen

and

Co

2

American Telephone &

^

V'

under-

(Monday)

Electric

&

stock for each class A and/or class B
—
Of debentures, 100% of principal

Price

Colonial Utilities

-

'.'X,.'

Gas

October

Lynch Carrier Systems, Inc.__—
Common
(P. W. Brooks & Co., Inc.) 52,£00 shares
.
National Musitine Corp
Common
s

1

common

held.

amount; and of stock to stockholders, $5.50 per share;
and to public, $6.50 per share. Proceeds—Together with
funds from private placement of preferred stock by. H.

Common

(Offering to stockholders—no underwriting)

:.C^vW. Brooks & Co., Inc.) $225,000

-

stock

(Thursday)

Telephone Co

Bakeries,

Inc., Augusta, Ga.
Aug. 13 filed $250,000 of 6% debentures due 1966; and
166,000 shares of common stock (par $1), of wliich the
debentures and 16,000 shares of stock are to be offered
publicly and the remaining 150,000 ^shares of stock are
to be offered for subscription by class A and
cl^ss B
/common stockholders at the rate of
two-thirds of a share
of new

,X<-X:

$35,000,000

Corp.)

$500,000

Lynch Carrier Systems, Inc

by

xXXX"/^

v

Common

(Ackerson-Hackett

$18,000,000

(Offering to stockholders—156,672 shares to be
written by Courts & Co.) $2,850,000

.

Corp

;'X.

Debentures
Boston

September 27

45,000 shares

Bahamas Helicopters, Ltd..
Common
f;
(Blair & Co. Incorporated) 300,000 shares

Hiskey Uranium

.

Preferred

Co
First

(The

Common

(Van

.

be underwritten
Boston Corp. and

inc.; The First
Langley & Co.)

C.

Coal

Peabody

September 17

..

Claussen

200,000 shares,.

& Co.)

Loeb

Co.,

&

Co.)

&

,

,

Long Island Lighting Co..
(offering to common stockholders—to

.

River Valley Financej Co.-—.—Class

\

$20,000,000 \

Allentown Portland Cement Co.__Class A Common

___Common

IVickers Brothers) $9,650,000

\

*

EDT)

a.m.

by stockholders. Price—$17 per share. Proceeds—For
working capital, etc. Underwriter—The Matthew Corp..
Washington, D. C.

..Bonds

'

shares

(Kuhn,
•./

;

i

September 26 (Wednesday)

:

Republic Cement.: Corp.i—

(Tuesday)

September 25

.

Virginia Electric & Power Co

..Preferred

_

November 27

"

(Tuesday)

Carolina Power & Light Co..
(Bids to be invited)

$15,000,000

Bonds

.

Aug., 16 (letter of notification) $250,000 of 10-year 5Vz%
collateral trust bonds due Sept. 9, 1966.
Office^—17353
Central Ave., St. Petersburg, Fla.
Predecessor—Lynch
Oil Co.
Underwriter—Security & Bond Co., Lexington,
Kentucky.

Continued

on

page

38

38

The Commercial and Financial Chronicle

(1106)

Continued from page

if Fansteel

37

Continental Equity Securities Corp.

First National Mutual

Contract Electronics Corp.

Inc.

dent.

Crestmont Oil Co.
(letter of notification) 8,000 shares of common
Price—$6.25 per share. Proceeds—To selling stockholders.
Office — 2201 West Burbank, Calif.
Underwriter—Neary, Purcell & Co., Los Angeles, Calif.

•'

'

'

T

States

Securities

Uranium.,Corp.^ Buena Vista, Col

Dec/27 (letter of notification) 3,000,000 shares of capit
(par five cents). Price—10 cents per share ;Pi
seeds — For mining, expenses.
Underwriter
Securities Co., Provo, Utah.
V*. / /\'.
—

.

'

r

Insurance Co.

commj

per

ceeds—For

Fortune Petroleum Corp.

(letter of notification)

300,000 shares of

if Four Wheel Drive Auto Co*

Proceeds—For

on Sept. 14.
Price—At par (flat). Proceeds—To |
short term bank loans and for construction and
Underwriter—None.
*

(9/24-28)

(letter of notification) 150,000 shares of com- '
Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital. Office—1111 No. First Ave., Lake

May 16

Dec.

Gunkelman

(R. F.)

,

& Sons, Fargo, N.D.

May 25 (letter of notification) 1,800 shares of 5%
iative ^preferred stock (par $100).

Price—$98

Proceeds

business;
r

—

For expenses incident to

mon

-,

stock

(par

l,O00,Q0O~sbares -of

Mining Corp., Denver, Colo.
Aug. 29 filed 2,500,000 shares of 6% convertible noncumulative preferred stock, first series (par $1), and

*

,

r

;£urgli^ Pa./ Undc^ritet^^yabam;^
•
Hawaiian, Electric vCo. J-td« (9/14)..
Aug. 20 filed" 250,000 shares of cumulative preferi
,

stock, series F (par $20), which was later, amended
150,000 shares of the same class of stock. Price—To
supplied by amendments Proceeds — For construct

chase

one common

share at

any

common

if General Guaranty Insurance Co. (9/24)

stock
■

time prior to Dec. 31,

/ 1957 at $2 per share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under¬

(par

-

,

-

—

Douglas Corp., Fort Collins, Colo.
'
July 27 filed 4,000,000 shares of common stock (par one
cent). Price — 10 cents per share. Proceeds
For ex-ploration, development and acquisition of properties and
for working capital. Underwriter—Columbia Securities
Co., Denver, Colo.
,

—

Dow Chemical

Co., Midland, Mich.

Aug. 27 filed 150,000 shares of common stock (par $5)
to be offered for subscription by employees of the com-*
pany and certain subsidiaries and associated companies.
Price—To be supplied by amendment.
Proceeds—For,. ;
expansion, etc. Underwriter-r-None.
t

:

if Duro Consolidated, Inc.
Aug. 28 (letter of notification)
vertible

debentures

to

be

$200,000

offered

to

of

6%

con-/

stockholders

the basis of

of

one

General

General Tire & Rubber Co., Akron, Ohio
July 27 filed 26,068 shares of $5 cumulative preference
stock (par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products
Corp.'
The exchange offer will be subject to acceptance by
owners of all of the
outstanding $1,060,000 notes and by'
not less than 39,400 of the 68,837 shares of Carlon stock.
Underwriter—None.
V
...

General

Uranium

Corp. (N. J.), New York
Jan. 18 filed 400,000 shares of common stock (par 10.
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground developmentUnderwriter—None. Maurice Schack, Middletown, N. Yn
Lb President.
•

Statement effective March 11.

G-L Electronics

Ave. and Edison

machinery, working capital, etc. Office — 2921 Admiral
Wilson Boulevard, Camden 5, N. J. Underwriter—Harry
Kahn, Jr., Washington, D. C.

—None.
Eastern-Northern

Explorations, Ltd.,

Toronto, Canada
June 4 (regulation "D")

500,000 shares of common stock'
(par $1). Price—60 cents per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter — Foster-Mann,
Inc., New York.
W

if Esquire Oil & Uranium Co.
Aug. 20 (letter of notification) 3,000,000 shares of
mon

stock

(par two cents).

Proceeds—For

mining

St., Denver, Colo. Underwriter—None.




if Glasspar Co.
Aug. 24 (letter of notification) 51,000 shares of common
stock (par $1).
Price—$2.75 per share. Proceeds—To
selling stockholders. Office—19101 Newport Ave., Santa
Ana, Calif. Underwriter—Marache, Dofflemyre & Co.,
Los

Angeles, Calif.

Gold Mountain

com¬

Price—10 cents per share.
expenses.
Office—2975 Quebec

.

Price*i~$3(l

working capital.

Address
Underwriter—None.-..
*

—

*

per unit.

Box

*;

j

Proceeds—]

610, Marlton,
/
"
i

N.|

Hidden Dome
Exploration?Co«, Inc.: ;
May 15 (letter of notification) 3,000,000.shares of
capi
stock.
Price—At par (10 cents per
share). Proceedl
For the development of oil and
gas properties. Offici
219 E. Fremont
Ave;, Las Vegas, Nev. Underwrite^
National Securities Co., Las
Vegas. Nev.
.

*
„

•
Hiskey Uranium Corp. (9/17)
.;
May 31 filed 500,000 shares of common stock
(par
cents)/ Price—$1 per share. Proceeds—For
drilling
penses, purchase of properties and
working capital,
,

-

Co., Inc.
Aug. 22 (letter of notification) 150,000 shares of common,
stock (par 20 cents). Price—$2 per share. Proceeds—For-

Way, Redwood City, Calif. Underwriter

stock to be offered in units of one
class A

two class B shares.

preferred plus $2.50 in cash for each Citizens
fices—Las Vegas, Nev., and Salt Lake
preferred share. The exchange offer is part of proposed
City, Utah. Undl
plan of merger of Home and Citizens into General. Offer/ writer-Ackerson-Hackett Investment
Co., Reno, Nl
will expire on Oct. 11. Dealer-Managers—Paine, Web¬
Statement effective Aug; 30. \
ber, Jackson & Curtis and Stone & Webster Securities
Holden Mining Co.,
Winterhaven, Calif. > ;
Corp.
April 13 (letter of notification) 250,000 shares of

Aug. 15, 1956. Price—At par (in denominations,
of $100 each).
Proceeds — For acquisition of factory
equipment, note payable and expansion.
Office—18th

record

;

42,850 shares of common
stock (par $2.50) to be offered to stockholders about*
Sept. 24; rights to expire Oct. 12. Price-^$7 per share.
Proceeds—For general corporate purposes.
Office—Win-^
ter Park, Fla. Underwriter—Grimm & Co., New York.

share of General preferred plus $2 in:
cash for each share of Home preferred, and one share of

1C

cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter
James C
McKeever & Associates, Oklahoma City, Okla.

|

Aug. 24 (letter of notification)

on

stock

.

General Telephone Co. of Indiana, Inc. V
Sept. 6 filed 95,000 shares of $2.50 preferred stock (no*
par) to be offered in exchange for outstanding 5%
cumulative prefererd stock, series A, of Home Telephone;
& Telegraph Co. and Citizens Independent Telephone Co.

writer—To be named by amendment.
Doctors Oil Corp., Carrollton, Tex.
Feb. 23 filed 500,000 shares of common

-

.

(par 10 cents) to be offered for subscription initially by
common stockholders in units of 25 preferred shares and
a warrant to purchase five common shares;/Price—$25.50
per unit (each warrant will entitle the holder to pury

coj

cent). Price—Five cents per sha
purchase machinery and equipment a
for working capital. .-Office—377 McKee
Place, Pit
one

Proceeds—To

,

Diversified Oil &

common

gr;

,

Underwriter—Vickers Brothers, Houston,

500,000 shares of

sha

commercial

Mining.Co., Pittsburgh, Pa.

Feb.-20 {letter of notification)

{

cui

per

Underwriter—W. R. Olson Co., Fargo,- N. D

Hard Rock

expenses

¬

Tex.

purchase

capi|

(par $5) to be offered first to stockholders; th
policyholders and the public. Price—$10 per share.
seeds—For working capital. Address—P. O. Box Pi^
22]
Baton Rouge, La. Underwriter—None.

: General Credit, Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
program and for retirement of bank loans. Underwrit
debentures, due Sept. 1, 1971, with detachable warrants
—Dillon, Read & Co. Inc., New York, and Dean Wit
to purchase 160,000 shares of participating preference
& Co., San Francisco, Calif.
stock, to be offered in units of $500 of debentures and 40 /
V> Hedges Diesel, Inc.
A > ;A
warrants.
Price—$500 per unit. Proceeds—For expan¬
Aug. 22 (letter of notification) 10,000 shares of class
sion and working captal.
Underwriter — None named.
•common. stock/(par;$10) and 20,000 shares -of- class
Offering to be made through selected dealers.

stock (par $1).

to

(par

itock

„

Inc.

stock

common

offered

Guaranty Income Life Insurance Co.
30 (letter of
notification) 24,000 shares of

,

J Genco Oil Co., Inc.
1;
--\
Aug. 24 (letter of notification) 55,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For oil
development expenses. Office — 1907 .Broadway Ave.,
Scottsbluff, Neb.
Underwriter — Edward C. Colling,
Scottsbluff, Neb,

other purposes.

Vegas,"N<

.

primarily to individuals and firms
w|
engaged in or closely allied to 4he growing
a]
shipping industry; Price-~-$3 per share. Proceeds—F
working capital, capital expenditures and other coi
rate purposes.
Underwriter—None.

(10/2-5)

.

Pi

Madison

.

incident to mining operations
Office—Kemmerer, Wyo. Underwriter—Philip Gordoi
& Co., Inc., New York 6. N. Y., ' X,

-

be

to

•

Gas Hills Mining and Oil, Inc.
Jan. 4 (letter of notification) 1,200,000 shares of common stock (par five cents).
Price — 25 cents per share

-July 24 filed $59,778,900 of 3%% convertible debentures
due Sept. 14, 1971, being offered for subscription by
stockholders of record Aug. 17, 1956 at the rate of $100
of debentures for each 21 shares of stock held; rights to

c/o

—

are

12 filed $1,500,000 of convertible debentures due
1, 1971. Price — To be supplied by amendment.
Proceeds—$130,05.8 to retire 4%% sinking fund debentures due July 1, 1957; and for working capital. Un¬
derwriter—A. C. Allyn & Co.; Inc., Chicago, 111.

Detroit Edison Co.

.

May 28 filed 600,000 shares of

\

Oct.

postponed.

Office

Growers-Container Corp., Salinas, Calif.

com¬

Sept.

Grand Junction, Colo. Underwriter—Columbl#
Securities Co., Denver, Colo.
Offering — Indefinitely

expenses.

Underwriter—None.

(9/18)

Founders Mutual {Depositor Corp,, Denver, Colo.
Sept. 7 filed (by amendment) 24,000 Systematic Pay¬
ment Plan Certificates, 500 Accumulative Plan Certificates and 500. Income Plan Certificates. Price—At mar¬
ket.
Proceeds—For investment.
♦ **.
;. ;•

Colo.

mining

Graves (President), 826 South Third Bt;, Las

Nuys Blvd., Sherman Oaks, Calif. Underwriter—Willis
E. Burnside & Co., Inc., New York.

,

«In|

itock

stock (par 10 cents). Price—$1 per share. Proceeds
--For exploration and drilling costs. Office—4645 Van

Street,

warrants

Dealers.

Offering—Expected late in September.!

Golden Dawn

mon

April 16 (letter of notification) 2,700,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—1730 North 7tb

Charles, La.

Sun Life

'

.

Underwriter—All

if. Great Basin Uranium Corp.

July 20

mon

mon

'

'

to

Y.

Aug. 27 (letter of notification) 600,000 shares of
stock (par one cent).
Price—50 cents per share.

•

St., Hartford, Conn.. Underwriter—None.

Land & Marine Construction Co.,

/'

Products Corp.
filed 200,000-shares of class A stock
(par
Price—$5 per share.
Proceeds—For exparisi<
repay outstanding obligations.
Office—Remse

New York.

President of company.

if Cro-Plate Co., Inc.
Aug. 22 (letter of notification) 4,123 shares of common
stock (par $5) to be offered to stockholders on the basis
of one share for each two shares now held or one share
for each warrant held.
Price—$9.50 per share. Pro¬
ceeds—For working capital, etc. Office — 747 Windsor

Devall

N.

32,000 shares of common stock (pair $1).
share. Proceeds—To expand company*#
business.
Office—Fort Lauderdale, Fla.
Underwriter—
None. Offering will be made through James C. Dean.

,

expire

'

Florida

stock (par $1).

repay

cents);
and

Seal Dairy

22

Price—$10

June 28

Dalmid Oil & Uranium, Inc., Grand Junction,

i

Gold

March 16 filed

Office — 1902 East San Rafael, Colorado
Springs, Colo. Underwriter — Skyline Securities, Inc.,
'Denver, Colo.
expenses.

•

:

June

Francisco, Calif. Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi¬

March 8 (letter of notification) 575,000 shares of common
stock. Price—50 cents per share. Proceeds—For mining

'

Fund, Inc.

shares to net asset value plus a distributing charge. In¬
vestment Adviser—First National Investment Corp., San

Colo.

Crater Lake Mining & Milling Co.,

new
construction and working capital.
Bnsines
Operates year-round resort hotel. Underwriter—Noi

pany will declare itself an open-end investment company'
and change the offering price oi the remaining 40,000

of common
Proceeds—
For purchase of stock of affiliates and working capital,
Off ice—9036 Culver Blvd., Culver City, Colo. Under¬
writer—L. A. Huey Co., Denver,

for

June 27 filed 50,000 shares of common stock (par $1), of
which 10,000 shares are to be offered for sale at $10 per
share to not more than 25 people, whereupon the com¬

Aug. 14 (letter of notification) 600,000 shares
stock. Price—At par (50 cents per share).

j

2,950 shares of class B stock." apd one: $7,0(
Price—$10,000 per unit. Proceeds—For
pu|
chase of property, remodeling of present main buildii

_

derwriter—None.

shares of class

debenture.

1, 1976. Price — To be supplied by amendment.
Proceeds—Together with bank loan, for construction of
new tantalum-columbium facilities at Muskogee, Okla.
Underwriter—Hallgarten & Co., New York.
,

-

50

stock,

Oct.

A common stock
(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A stock, $12.50 per share, and
of class B stock, 50 cents per share. Proceeds—To increase capital and surplus.
Office—Alexandria, La. Un¬

Thursday, September 13/191

.

of Texas and Colorado in units of

Corp.

Sept. 11 filed $3,000,000 of subordinated debentures due y

March 28 filed 40,000 shares of class

"

Metallurgical

.

.

Lodge, Inc., Durango, Colo.
Aug. 23 filed 5,000 shares of class A voting common
stock (par $1), 295,000 shares of class B non-voting
common stock (par $1), and $700,000 of 4%
debentures
due Dec. 31, 1975, to be offered for sale in the States

-stock.

ing

.Calif.
caiif.
:

cap!
Price—At par ($1 per share).
Proceeds—For ml
Address — P. O. Box 308,

expenses.

Winterhavl
Underwriter—Arthur B. Hogan, Inc.,
Hollywol
-

V/U-/,

Hydrometals, Inc., Chicago, .III.

,

Aug; 10 filed 78,275 shares of capital stock
(par $2..
and rights to subscribe to an additional
391,375
sha]
(exercisable over a five-year period at $13
per shar
Of the total, 77,500
shares, plus rights to purchase
additional 387,500 shares, are to be
offered in
exchai,
for the license rights and assets of
Hayden Projects, Ii
and the remaining 775
shares,,plus rights to buy
additional 3,875 shares, are to be issued* to
Cadyj Robt
& Co., New York
City, as a fee for its services
with

transaction.

si

.

*; Ideal-Aerosmith, Inc.,
Hawthorne, Calif.
Dec. 16 (letter of
notification) 150,000 shares of capi
rtock (par $1).
Price
$2 per share.
Proceeds
—

—

:

equipment, machinery, inventory, etc. Office-rJ.2909
Cerise Ave., Hawthorne, Calif.
Underwriter—Samuel
Franklin & Co., Los Angeles, Calif.
/
-

Illinois

Bell

Telephone Co.

Aug. 10 filed 580,531 shares of capital stock
being offe
for subscription by stockholders
of record
Aug. 31, 1<
on the basis of one new share
for each
eight shares h<
rights to expire on Sept. 28, 1956.-. Price—At
par ($
per share).
Proceeds—To repay advances from
par*
American
Telephone &- Telegraph
Co., which
4,612,578

shares

o>

(99.32%)

Underwriter—None.-

of

Illinois

company's

stc

Volume 184

Number 5568

The Commercial and Financial Chronicle

.;;

(1107)

^ Inter-Mountain Telephone Co., Bristol; Tenn/;
(9/27)
Sept. 6 filed 285,000 shares of
to

be

of

VsKnox Corp., Thomson, Ga.;

" •
June 20 filed 15Q,000 shares of class A comitton~stock~
(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To pay loans from banks

(par-$10) \

stock

common

record

offered

for subscription by common stockholders
Sept. 26 in the ratio of two new shares for*;,
each five shares held; rights to expire on Oct. 12. Price
—$10 per share. Proceeds—To repay bank loans and for"
additions and improvements to property. Underwriter—*
Courts

&

Co.,

shares. L"
•

Atlanta,

Ga.,

vC--:':;...

will

underwrite

156,672

stock

Aug. 24 filed $2,500,000 of subordinate interim notes-due :
July 31, 1962, and 50,000 shares of common stock /{par ;
$1), * to be i offered publicly in units of $50 principal
amount of notes

and

share of

one

stock.

common

and

of

sale

Idaho

to

residents

of

';
-

'

International

•'

>.

•

>

.

J '1

•

,

,

♦

•

* '< '•

?

*

*»

** *

'

J

j.

oJ

•

,

>J

stock...

<

Metals, Inc.
(letter of notification) 1,000,000 shares of com¬
mon stock (par 10 cents).
Price — 25 cents per share.'
Proceeds—For mining expenses. Office—155 West South
Temple St., Salt Lake City, Utah. Underwriter—Melvin.
G. Flegal & Co., Salt Lake City, Utah.

Los

(10 cents per share).: Proceeds—
Office—205 Carlson Bldg., PocaUnderwriter—Columbia Securities Co., Inc.
of California, Beverly
Hills, Calif.
:
;
v

mining
tello, Idaho.

■

★

Marine Petroleum Trust,
Dallas, Texas (9/18)
Aug. 30 filed 450,000 of units of interest in the Trust
and warrants to purchase 50,000 units of interest in
the
Trust. Price—To be supplied
by amendment. 'Proceeds

Office

—

'

Fla.

Office—471 N. E. 79th Street.

Miami,'

-

-

share),

Proceeds—For

c/o

Myron

W.

Curzon,

—To selling stockholders.
Co. Inc., New York. No

Underwriter—Dillon, Read &
general public offering planned.

Counsel.

Mascot Mines, Inc.
July 9 (letter of notfication) 280,000 shares of common
stock (par 17% cents). Price—25 cents
per share.
Pro¬

J.

ceeds—For

:

Office—508 Peyton Bldg., Spokane, Wash. Under¬
writer—Standard Securities Corp., Spokane, Wash.

★ Matador Oil Co.
Aug. 24 (letter of notification) 120,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
development of oil and gas. Off ice—130 South Fourth
St., Las Vegas, Nov. Underwriter—Mountain States Se¬
curities
★

Corp.,

Metal

"•

"

to

be

common

(9-18)

stock

(par $5)

offered for subscription by common
stockholders
about Sept. 18 on the basis of one new share

of record

Oct.

equipment

for each three shares

and for general corporate
Ariz.
Underwriter—George

2.

;

Price—To

ceeds—For

Office—Tucson.
F. Breen, New York. Offering—Postponed.
purposes.

10" cents per share at rate of ten shares for
preferred share bought.
Proceeds—For working
capital.
Office—Fort Lauderdale, Fla.
Underwriter—
None.'
•
/ *
' '
*
each

city.

Aug. 23 filed 85,266 shares of

Lewisohn Copper Corp.

improvements,

Stock, at

same

Hydrides, Inc., Beverly, Mass.

—For exploration and evaluation of leasehold properties,

Corp. of Florida
Aug. 24 filed $515,000 of $60 cumulative, preferred stock
to be offered in units of $1,000 each and 5,150 Shares ofcommon stock to be offered to
purchasers of preferred

on properties;
repayment of ad¬
and development and working cap¬

ital.

Underwriter—None.

March 30 filed 100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds

investment

payment

vances; exploration

July 17 (letter of notification) 150,000 shares of common
stock (par $1) to be offered to stockholders; the balance
to go to certain persons in certain jurisdictions to be
"decided upon. Price—$2 per share. Proceeds—For ex¬
ploration and development and to purchase additional
stock of its subsidiary, leadville Explorations, Inc. Office
—308 Colorado Bldg., Denver, Colo. Underwriter—None.

;

Underwriter—Atwill & Co., Miami Beach, Fla.

per

Office—208 West Eighth St.,

/Leadville Lead & Uranium Corp.

International Shipbuilding Corp.
Aug. 9 (letter of notification) 100,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For general corporate purposes. Business—Manufactures
butboard cruisers.

Calif.,

Office—Morris Plains, N.

369-375 DeKalb Ave., Brooklyn I.

Underwriter—Kamen & Co.. New York.

Angeles,

($1

trailer site.

Laundrimation, Inc.
Aug. 10 (letter of notification) 1,540,000 shares of com¬
mon stock. Price—At par
(one cent per share). Proceeds
—For working capital. Business—Sales and distribution
of washing machines and
other
laundry equipment.

equip¬

ment, etc.

a

expenses.

Underwriter—None.

International Plastic Industries
Corp, ;
Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share.';Proceeds—
For advances to Arliss Co., Inc. for purchase of
N. Y.

Price—At" par

operation of

share for

Price—At par

For

Underwriter—Clark, Landstreet & Kirkpatrick, Inc., Nashville, Tenn.

Basic

new

Mammoth

stock.

plastic items.

Jan'. 27

one

Milling & Uranium Co., Inc.
May 11 (letter of notification) 3,000,000 shares of capital

communi-':* ic La Habra Forever Modern Mobile Home Corp.
Aug. 22 (letter of notification) 250,000 shares of capital
Underwriter—White, Weld & Co., New York.

J''

r

stockholders

common

.

,

'

to introduce natural gas in 23 Southern Idaho

ties;
■

subscription by

Price—To be supplied by amend¬
Proceeds—For construction program. Underwriter
—None.5: /
'
■
.
/ ' ' l '

Manufacturer of toys, electric trains and various custom

a

for

Oct. 1, 1956 on the basis of

ment.

v

.

L

offered

of record

each five shares held.

,/

.

be

to
common

Kusan, Inc., Nashville, Tenn. (9/24-28)
^ ^ " Ly
Aug. 29 filed 116,624 shares of common-stock (par $1).I
Price—$5 per share. /Proceeds—To reduce debt, for new
tooling and equipment and working capital. Business—

for construction program;

pay

★ Madison Gas & Electric Co.,Madison,Wis. (10/1)]
Sept. 10 filed 68,334 shares of common stock (par $16)

•

140,000 additional shares

stock at $5 per share, to be used to refund

common

$5,000,000 bank loan and

;

Price v,

-r-$52 .per unit.. Proceeds — Together .with funds from
private placement of $5,000,000 of first mortgage bonds

stock .(par 10 cents). Price
13% cents per share.
Proceeds—For working capital, etc. Office—751 West 8th
South, Salt Lake City, Utah. Underwriter—None.

(par'33%

cents). Price—At market (estimated at
$3.50 per share). Proceeds —■ To selling stockholder,
Underwriter—Sincere & Co., Chicago, 111.
>

(9/13) "\i

Intermountain Gas Co.

tal

factors; and for working capital and other corporate
purposes.;Business—Prefabricated homes, house trailers,
and lumber. Underwriter—Ira Haupt &
Co., New York.

AA) 'JArAA

L>''A;

★ MacLee, Inc.
•.
1/
Aug. 17 (letter .of notification) 1,900,000 shares of capi¬

and

Kropp Forge Co.
June 4 (letter of notification) 18,804 shares of

39

held; rights to expire

on

or

about

be

supplied by amendment.
Pro¬
construction of plant and
working capital.

Business—Hydrides of calcium, lithium, potassium and

v

sodium,1 etc.
Underwriter—White, Weld & Co., New
Associates, New York
LYork.
r,
r
«'Aug. 31 filed $2,100,000 of 4% notes due Nov. 1, 1971
★ Mica Corp. of America
Z: un and
.rir
' -.- A?\ -Ait* J:-:
:*■
••••.•••<-',W$1,400,000 of limited partnership interests, to be
Aug. 24 (letter of notification) 633,480 shares of common
Investment Life & Trust Co., Mullins, S. C.¬
offered iri*units of a $60,000 note and a capital contri¬
stock (par one
cent)'; trice—50 cents per share. Pro¬
July : 9^ filed 1,800,000 shares of common stock (par> $1)»
bution of $40,000. Price—$100,000 per unit. Proceeds—
ceeds—For mining expenses.
of which 1,200,000 shares are to be offered;
Office—Room 104, Clark
For purchase price of hotel; and for
publicity
improvements, etc.
County Court House, Las Vegas, Nev. Underwriter—
and 600,000 shares on exercise of options.
Price—$2 per
Underwriter—None.
Lincoln

.

^

.

■

-

•

share to

public.

insurance

None,

Proceeds—To be added to general op¬

erating funds to enable the company to maintain
reserves

Lithium Developments/ Inc./ Cleveland, Ohio
21 filed 600,000 shares of common stock (par

proper

June

required by law. Underwriter—None.

cents), of which 600,000 shares

Israel-Mediterranean Petroleum^ Inc.

count of the company and

(Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock
(par one. cent),, of which
1,000,000 certificates are to be offered for public
sale,
180,000

shares

and-certificates

therefor

are

—For

common

stock

(par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬

Ainsley Bldg., Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y.
%

Underwriter—Mid-America

Price—$10

per

share.

common

stock

(par

326

•

non¬

—

New York.

Montezuma

of stock initially at $7 per share). Price—To
supplied by amendment. Proceeds—For research and
development expenses and working capital. Office—San
Francisco, Calif. Underwriter—P. W. Brooks & Co., Inc.,
be

Cortez,
Bay Securities Corp., New York.
'v;L-

■
-

Li

.

••••'

••

\

:-v.:

•

New

.

Kay Jewelry Stores, Inc.
Aug. 24 filed 150,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
bank

loans.

Underwriter—Lazard

—

Retail

Freres

&

credit

Co.,

jewelry
New/York.

Offering—Expected today (Sept. 13).

v

•

:

Income

Fund, Inc., Los Angeles, Califs
1"'
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be
initially sold at $10.98 per
Additional shares will be offered at a price equal
asset value of the Fund,
plus a sales load of
of such price.
Proceeds—For investment. Invest-:

to the net

ment Manager — California Fund
-which John Kerr is also President.




Investment

Co., of
■ac¬

Uranium Mining Corp.

1,000,000 shares of comcent). Price—20 cents per share.
Proceeds—For current liabilities, exploration, adminis¬
trative expenses and working capital.
Office — Kimo

.July 31
.

Business

York.

Macimiento

mon

(letter of notification)

stock

(par

one

Bldg., Albuquerque, N. M.
Denver, Colo.

Underwriter—Carroll & Co.,

construction,

Underwriter—None.

Inc., New York
2,500,000 shares of common stock (par
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin
lead-zinc-copper-silver mine

one

22

filed

cent).

located in South Central Peru, and for
general corporate
purposes.
Underwriter — Gearhart & Otis,
Inc., New
York. Offering—Postponed.:;;
Mission Appliance Corp. of
Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock
(par
$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds — For pur¬
chase of machinery and equipment. Office—New
Albany,

Utah, Sail

40 shares

St.,

reserve, etc.

Minerals,

June

Miss.

Underwriter—Lewis & Co., Jackson, Miss.

Modern Pioneers' Life Insurance Co.

May 24 (letter of notification) $300,000 of trust fund cer¬
Price—At par ($2 per unit). Proceeds — To
provide capital and surplus funds for the activation of
tificates.

series B

one

West

Inc. of

• Lynch Carrier
Systems, Inc. (9/17-18)
Aug. 20 filed $225,000 of 6% sinking fund debentures, >
(with capital stock purchase warrants attached),
due Sept. 1, 1971, and 52,500 shares of capital stock (par
$1), of which 12,500 shares are to be sold for the account
of the company and 40,000 shares for the account of
Frank W. Lynch, former President.
(Each $500 of de¬
bentures will have attached thereto warrants to purchase

Proceeds—to repay bank

cent). Price—10 cents
Proceeds—For expenses incident to
mining

share.
activities. Office —
Colo. Underwriter

per

:8%%

—

working capital,

Underwriter—None.

'

share.

—

;

Lumberman's Investment & Mortgage Co.
May 2 filed 50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
general corporate purposes.' Office — Denver, Colo.

Office—Riley Road, N. E.,
Roanoke, Va. Underwriters—Mason-Hagan, Inc., Roan¬
oke, Va.; and Strader, Taylor & Co., Inc., Lynchburg, Va.

Kerr

(no
par).. The company does not intend
presently to sell
more stock than is
required to raise, at most, $2,700,000.
Price
$100 per share. Proceeds
For

Lake City, Utah.

loans and for working capital.

Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of

Securities

;

Midland General
Hospital, Inc., Bronx, N. Y.
Jan. 12 filed 24,120 shares of common
stock (no par)
and 30,000 shares of $6 dividend
preferred stock
;

shares of non¬
(par one cent). Price—10 cent*
share. Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.

Johnson-Carper Furniture Co., Inc.
Aug. 22 (letter of notification) 27,000 shares of common
stock (par $5) to be offered for
subscription by stock¬

'chain.

for bids has been set.

per

t

for

Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date

Searight,

assessable capital stock

Joa Co.

l V'

—

Oct.

July 27 (letter of notification) 110,000 shares of common
stock7 (par 20 cents). Price—$2.50
per share:' Proceeds '
'•—For sales promotions and
operating capital. Office—
•411 No. Scenic
Highway/ Lake Wales, Fla. Underwriter
—Anderson Cook Co., Inc., Palm Beach, Fla.

"r?1

1976.

and

Lost Canyon Uranium & Oil Co.
6 (letter of notification) 3,000,000

'

Office—1214

reduce

due

City.

Long Island Lighting Co. (9/26)
April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100) (on Aug. 29 company announced it
now plans issuance of 180,000 shares of cumulative con¬
vertible preferred stock, to be first offered for subscrip¬
tion by common stockholders of record Sept. 25, 1956, at
rate of one preferred share for each 38 shares of common
stock held); rights to expire on Oct. 10. Price — At par
($100 per share). Proceeds—To repay bank loans. Un¬
derwriters—Blyth & Co., Inc., The First Boston Corp.
and W. C. Langley & Co., all of New York.

Isthmus

assessable

Underwriter—George A.

'l

first mortgage pipe line bonds
Proceeds—To pay off short term bank loans
construction program.
Underwriter
To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston

ac¬

>

change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,
operations and expenses of the company/ and
acquisition,
exploration and development of additional acreage. Un¬
derwriter—H. Kook & Co., Inc., New York.

r

purposes.

New York

Options and 250,000 shares and certificates therefor are
to be offered for sale outside of the United States. Price
be the market price on the American Stock Ex¬

holders.

be sold for

Price—$1 per share, by amendment. Proceeds
exploration and development and other general

corporate

'—To

ment.

to

90,000 shares for selling stock¬

holders.

subject to

Steamship & Salvage Co., Inc.
May 4 (letter of notification) 100,000 shares of

are

L':

Michigan Wisconsin Pipe Line Co.

10'' July 2 filed
$25,000,000 of

this insurance company. Underwriter—Arizona
Benefit Insurance Co., Phoenix, Ariz.
>

Mutual

Mohawk Silica Co.,
March

23

cumulative

(letter

3,000 shares of
units of

one

Price

of

Cincinnati, Ohio
notification) 3,000 shares of 8%
preferred stock (par $50) and

convertible

common

stock

(no par) to be offered In

$60

share of preferred and

one

share of

common.

per unit.
Proceeds — For mining expenses
processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.
—

and

Mormon Trail Mining Corp., Salt Lake
City, Utah
Feb. 9

(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol¬
eum
Bldg., Salt Lake City, Utah. Underwriter—Frontier
stock

Investment, Inc., Las Vegas, Nev.
National

Macinar, Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For general corporate purposes. Business — Manufac¬
tures steel and aluminum specialty products.
Under¬
writer—C. J. Montague, Inc., 15 William Street, New
York 17, N. Y.
5

June
stock

By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—To pay

19

Federal

estate taxes.
Office—800 Bankers Trust Bldg.,
Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.

Des

Continued

on

page

40

*

40

The Commercial and Financial Chronicle.

(1108)

«■. y;
*

Cooling Mfg. Corp. ; ;
*
notification) $250,000 of 5% debentures
in denominations of ;
each. Proceeds—For equipment and working capi¬
Office—305 North Front St., Columbus, Ohio. Un¬

National Heating &

Sept. 4 (letter of
due in 1971.

$500
tal.

Price—At face amount

derwriter—None.
•

"

♦

shares of common
share. Proceeds—
For mining expenses.
Office — 556 Denver Club Bldg.,.
Denver, Colo
Underwriter — Investment Service Co.,
(letter of notification) 300,000
etock (par one cent). Price—$1 per

city.

«ame

-

Offering—Postponed.

National

of notification) 24,000 shares of Class A
$1) and 40,000 shares of Class B stock (par :
$1) to be offered for subscription by Class A and Class
13 stockholders of record Feb. 1, 1956 on a l-for-4 basis.
jPrice—$2 per share. Proceeds—For vacuum metallizing,
-conditioning, slitting and inspection machinery. Office— •
I145-19th St., N. W., Washington, D. C. Underwriter—
March 5 (letter

'r/'.' '

Office—2233 North Broad St,
Underwriter—Walnut Securities Corp.,

./"'•?

1

:

4.

-

(9/17)
. .
Aug. 7 (letter of notification) 393,000 shares of common
stock (par one cent).
Price—75 cents per, share. Pro¬
ceeds—To repay loan and for general corporate pur¬
poses. Office—730 Fifth Avenue, New York. BusinessNational Musitime Corp.

Office—San

(Calif. )

.

nitely postponed.

,

'

*

'

:

,

•

National Pool Equipment

Offering—Indefinitely
»*

ing expenses.
Office
Underwriter—None.'

Plywood Co., Dillard, Ore.
/•;
Aug. 20' (letter of notification) 60,000 shares of commdn
stock (no par). 'Pripe—$5 per share. Proceeds—To re¬
tire obligations, for machinery and working capital.
Address—P. O. Box 78, Dillard, Ore. Underwriter—None.
Pacific

Co. (9/17-21)

x

stock (par $1).
machinery and
equipment for a new plant which is being erected for
Che company in Florence, Ala.; to retire bank loans and
tfor working capital.
Business—Manufactures and sells
component parts of swimming pools and related equip¬
Aug. 23 filed 200,000 shares of common
t*rice — $3 per share. Proceeds — For

Office—Birmingham,

ment.

Ala.

Underwriters—Mid-

Landstreet & Kirkpatirick, Inc., both of Nashville, Tenn.
■
■;
National Sugar Refining Co. (9/14)
Aug. 24 filed 94,803 shares of capital stock (no par) to
*be offered for subscription by stockholders/of record
.Sept. 13 at the rate of one new share for each six shares
field; rights to expire on Oct. 1. Price—To be supplied
•jy amendment. /.Proceeds — For Working capital and
other corporate purposes. Underwriter—Morgan Stanley
fc Co., New York.
'
*
'
1 I
«
'
:
New England Telephone & Telegraph Co.
Aug. 3 filed 613,010 shares of capital stock being offered
for subscription by stockholders at the rate of one new
share for each five shares held as of Aug. 29; with
rights to expire on Sept. 28. American Telephone &
Telegraph Co. owns 69.26% (2,122,842 shares) of outhanding stock. Price—At par ($100 per share). Proceeds
—To repay temporary borrowings. Underwriter—None.

-South

Securities Co. and Clark,

-

Niagara Uranium Corp., Salt- Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3ya cents). Price—10 cents per share.
Proceeds
For mining expenses. Office — 345 South
—

JState

St., Salt Lake City, Utah.
inayer & Co., Denver, Colo.
Nortex Oil

Underwriter—Birken-

& Gas

Corp. (9/17-21)
Aug. 24 filed 100,000 shares of $1.20 cumulative convert¬
ible preferred stock (par $1). Price—To be supplied by
amendment. Proceeds—To pay note due Feb. 1, 1957; for
^drilling and development costs; and working capital.
-Office—Dallas, Texas. Underwriter—J. R. Williston &
"Co., New York.
/
•
• North
American Aviation, Inc.
Aug. 6 filed 1,145,011 shares of capital stock (par $1)
t?eing offered for subscription by stockholders of record
iSept. 7, 1956 at the rate of one new share for each six
Shares held; rights to expire on Sept. 24. Price—$38 per
.share. Proceeds—For capital expenditures. Underwriter
—Morgan Stanley & Co., New York.

|

—

Riley Ave., Reno, Nev,;

1455

Pyramid Development Corp., Washington, D* C.

t

July 27 (letter of notification) 300,000 shares of common
stock (par 10 cents), of which 25,000 shares are to be
reserved for issuance upon exercise of options. - Prlce-4
$1 per share.

Proceeds—To purchase real property and
Underwriter—Coombs & Co. of Wash-*

mortgage notes.

R. and

Nev.

P. Minerals,. Inc., Reno,

Feb. 14 (letter of notification) 500,000 shares
stock.
Price—At par (10 cents ner share).

of commom
Proceeds—

Office—5<3 Mill St., Reno, Nev.
Underwriter—Utility Investments, Inc.,Reno, Nev.
For mining expenses.

* Racine Hydraulics &

Machinery, Inc.
of $1.20 cumulative convert¬

Sept. 10 filed 15,000 shares

preferred stock, series A (par $20; and 35,000 shares
of common stock
(par $1), of which 10,000 common
shares are to be offered for the account of Malcolm
ible

Underwriter—None.

tion.

t

A- Puma Mining & Milling Corp.
Sept. 6 (letter of notification) 50,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬

Pacific Telephone & Telegraph Co.
July 27 filed 1,562,267 shares of common stock being of¬
fered for subscription by common and preferred stock¬
Background music business. Underwriters—M. J. Reiter
holders of record Aug. 29, 1956 in the ratio of one share
Co., New York; Shelley Roberts & Co., Denver, Colo.;
for each six shares (common and/or preferred stock)
and General Investing Corp., New York.
held; rights to "expire on Sept. 28. American Telephone
& Telegraph Co., the parent, owns 90.70% of the out¬
National Old Line Insurance Co.
r
standing common stcck and 78.17 % of the preferred
XJov. 15 filed 50,000 shares of class A common stock
stock, and intends to purchase 1,399,824 shares of the
(par $2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Pro- j; new stock which represents its pro rata portion of the
offering. Price—At par ($100 per share). Proceeds—
cseds — To selling stockholders. Office — Little Rock,
To repay temporary borrowings and for new construc¬
Ark.- Underwriter—Equitable
Securities Corp., Nash¬

ville, Tenn., and New York, N. Y.
f>ostponed.
\

Underwriters—Crerie &

Juan, Porto Rico.

Springfield, 111.

Weeks. Offering—Indefi¬

V

;

*

Co., Houston, Texas; and Dixon Bretscher Noonan, Inc.,

April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment.
Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—Blyth &

Co., Inc., and Hornblower &

Alai, Inc.'

27 filed $1,100,000 of 12-year 6% first mort¬
gage bonds due July
1, 1968, and 220,000 shares of
common stock (par $1). Price—100% of principal amount
for debentures and $1.75 per share for the stock.
Pro¬
ceeds—For construction of fronton and related activities.

volume.

loan

Pacific Finance Corp.

«tock (par

.

Puerto Rico Jai

Philadelphia, Pa.

V

Metallizing Uip.

None.

increase

stock (par two cents).

July

(letter of notification) $250,000 of 6% 10-year
renewable debentures due Sept. 20, 1966. Proceeds—To

Sept. 4

Philadelphia, Pa.

Uranium Corp.

Proceeds—For mining expenses.

,t

,

Federal

Price—Five cents per share.
Underwriter—Skyline
Securities, Inc., Denver 2, Colo.
mon

Philadelphia, Pa.

Oxford Loan Co.,

Dec. 27

Prudential

March 21 (letter of notification) 6.000.000 shares of com¬

Underwriter—Philip Gordon A

eral corporate purposes.

Thursday, September 13,1956

'

of notification) 2,000,000 shares of common
(par five cents). Price—15 cents per share. Preeeeds—For exploration and development and other gen¬
Nov. 8 (letter

stock

Uo., New York.

,

Denver, Colo.

National Lithium Corp.,

Farmington, N. M.

Oak Mineral & Oil Corp.,

.

St., Toledo, Ohio. Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Being- postponed./ Larger deal >
expected in near future.
;
' V ,

Office—ft06f Bldg., 84 W. Chippewa St.,
Tender writer—None.

expenses.

Continued from page 39

.

^ Pan American Products, Inc.
Aug. 24 (letter of notification) 150 shares of class B
£. Erskine, President and Treasurer of the company.1
capital stock. Price—At par ($100 per share). Proceeds
Price—To be supplied by amendment;
Proceeds—For
—For purchase of goods for resale and for leases for
working capital. Underwriter—Loewi & Co., Inc., Mil-*
storage and corporate purposes. Office—1014 E. Pike St.,
waukee, Wis.
'<•
Seattle, Wash. Underwriter—None.
Radium Hill Uranium, Inc., Montrose, Colo.
Pan-Israel Oil Co., Inc. (Panama)
*
June 14 (letter of notification) an undetermined number
May 29 filed American voting trust certificates for 1,of shares of common stock which when sold at the
430,000 shares of common stock (par one cent), of which
market wiill bring in an aggregate amount of $42,500.
4,900,000 certificates are to be offered for public sale,
Proceeds—For mining expenses. Office—Bryant Bldg.,
180,000 shares and certificates therefor are subject to
Montrose, Cold. Underwriter—Shaiman & Co., Denver,
options and 25,000 shares and certificates therefor are to
be offered for sale outside of the United States.

oil and gas acreage

Co., Inc., New York.
Pari-Mutuel Equipment

Aug. 24

Corp.
60,000 shares of com¬

(letter of notification)

stock (par $1). Price—$5 per share. Proceeds^—For
construction of 250 race ticket machines; for purchase

mon

A

it Redding-Miller, Inc.
Aug. 24 (letter of notification)

.

.

,

.

>

:

'

;

$50,000 of 7% deben¬

thereafter date and in denominations
of $500 each.
Proceeds-^-For planning, financing, con¬
struction and management of real properties. Office—
931 East SixthrAve., Denver, Colo. Underwriter—None,
tures, due one year

Y.

(9/26)

Peabody Coal Co.

Underwriter—None.

Calif.

semi-blank race tickets;
and for working capital and general corporate purposes.
Office—527 Madison Avenue, New York 17, N. Y. Un¬
derwriter—Wistor R. Smith & Co., 40 East 54th Street,
of 40 machines for issuance of

New York 22, N.

.

..

Corp.
Aug. 22 (letter of notification) 2,960 shares of class B
common stockUpar $l),*pf which 2,076 shares are sub¬
ject to option held by Thompson Products, Inc. and the
remainder to be offered to selected and prospective
employees. Price—$10 per share. Proceeds—For work¬
ing capital. Office—5730 Arbor Vitae St., Los Angeles,
* Ramo-Woofdridge

Underwriter—H, Kook &

in Israel.

y}'

Colo.

Price—

the American Stock Exchange.
Proceeds—For exploration, drilling and development of

To be the market price on

Sept. 4 filed $35,000,000 of sinking fund debentures due
1976. Price—To be supplied by amendment. Proceeds—
For retirement of certain outstanding funded debt (ap¬

Reinsurance

Investment Corp.,

Birmingham, Ala*

May 25 filed 2,985,000 shares of common stock, of which
2,485,000 shares are to be offered to public and 500,000
shares are to be reserved on exercise of options to be

proximately $28,000,000) and for general corporate pur¬
poses. Underwriter—The First Boston Corp., New York.

granted to employees of company. Price—-To public, $2
share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com¬
pany to be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate

"At Pitney-Bowes, Inc., Stamford, Conn.
Sept. 11 filed $728,000 of participations in the company's
Stock Purchase Plan and an unspecified number of
shares of the company's $2 par common stock which
may be purchased pursuant to the plan.

per

purposes.

^Policy Advancing Corp.
Aug. 31 (letter of notification) $240,000 of 6% subordin¬
ated convertible debentures due Sept. 1, 1966 (ehch $10

*

Underwriter—Luna, Matthews & Waites.
(9/14-19)

Republic Cement Corp.

April 20 filed 965,000 shares of capital stock. Price—$10
per share.
Proceeds—For construction of plant, working

amount being convertible into one share of
stock) to be offered for subscription by stock¬
holders on the basis of $10 of debentures for each share

principal

capital and general corporate purposes. Office—Prescott,
Underwriter—Vickers Brothers, New York.
/

common

Ariz.

it River Valley Finance Co. (9/14)
(letter of notification) 11,000 shares of class A
common stock and 518 shares of class B common stock
to be offered first to stockholders.
Price—$6 per share.
Proceeds
For working capital.
Office — Davenport,
Iowa.
Underwriter — Quail & Co., also of Davenport,

held (with an
Proceeds—To

oversubscription privilege). Price—At par.
retire $16,700 of outstanding debentures
and for working capital. Office—27 Chenango St., Binghamton, N. Y. Underwriter—None.

Aug. 29

—

North

American

Finance

Co., Phoenix, Ariz.
' /
•July 9 filed 500,000 shares of class B non-voting common
hock (par $1). Price—$3 per share. Proceeds—To ex¬
pand business operations. Underwriter—None, sales are
to be made by Eugene M. Rosenson, President, of Pheoziix, and Marcus T. Baumann, Vice-President and Treas¬
urer, of Tucson, Ariz.

-Ar Poison Plywood Co., Poison, Mont. *
u
Aug. 9 (letter of notification) 50,000 shares of capital
stock

to

offered

be

Price—At par
tain

for

per

indebtedness

subscription

share).

on

by

Iowa.

stockholders.

Proceeds—To retire Cer¬

production

and

manufacturing

.

Underwriter—None.

equipment.
•

($1

Poor & Co.,

dron

Chicago, III.

Telephone Co.
July 24 filed 828,572 shares of common stock (par $1) to
t>e offered for subscription by common stockholders at

Aug. 23 filed 213,175 shares of common stock (par $10)
being offered for subscription by class A and common

the rate of two shares for each share held; rights to ex¬

for

pire

Sept. 12; rights to expire on Sept. 26. Price — $31 per
share. Proceeds—To retire all outstanding class A shares

North Carolina

15

IPrice

To

—

days
To

acquire

following effective date of registration.
be supplied by amendment.
Proceeds —
physical properties and franchises of the

Norwood and Marshville (N. C.) exchanges of the

Telephone
term

Co.

of

the

United

Carolinas, Inc.; to reduce short

indebtedness; for construction and modernization

program; and for working capital.
Dickson & Co., Inc., Charlotte, N.

Co., Inc., Ashville, N. C.

Underwriters—R. S.
C. and McCarley &
Offering—Expected moment¬

arily.
NYPA Gas Corp., Buffalo, N. Y.
July 11 (letter of notification) 5,586 shares of common
stock..(no par) to be offered to present stockho
r
Yrice—$8 per share. Proceeds—For oil and gas drilling




stockholders
each

and

on

five

the

shares

basis
of

of

two

class A

or

shares

of

common

stock

new

stock

held

about

$1,500,000 outstanding debentures; also for
working capital.
Business^—Supplies for maintenanceof-way and mechanical fields; also equipment for the
highway construction industry and for the aggregate
processing and mining industries. Underwriter—Bache& Co., New York.
Prestole

and

to

Corp. at the rate of one Ross share for each two
shares.
Offer will become effective upon de¬

Waldron

posit of at least 90% of the outstanding common stock,
of which Ross presently owns 61.53 %.
Underwriter—
None.

,

Roval

buy* equipments Office—1345

Miami

,;V'

Register Co., Inc.

(letter of notification) 15,000 shares of class A
stock (par $1) being offered initially to class A
at rate of 1% shares for each share held;
rights to expire on Sept. 15. Price—$15 per share. Pro¬
ceeds—To reduce outstanding debt, buy equipment and
for working capital. Office—Simon Street, Nashua, N. H.

Aug. 9

common

stockholders

Underwriter—None.
Samson

Corp.

July 3 (letter of notification) $300,000 of 6% convertible
sinking fund debentures due July 1, 1971 to be issued
in denominations of $20 or any multiple thereof.
Price
—100% and accrued interest.
Proceeds—To pay short
term note

it Ross (J. O.) Engineering Corp., New York
Sept. 10 filed 19,059 shares of common stock (par $1) to
be offered in exchange for common stock of John Wal-

^

Uranium, Inc., Denver, Colo.

rAug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock.

Price—At par

(10 cents per share). Proceeds
drilling, including geological research and
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; lor working
—For

core

core

Volume

184 ;

Number 5568

.

.

The Commercial and Financial Chronicle

.

(1100) -41
:

capital

1

Indiana

and

other

corporate

purposes.

Underwriter

•

—

State Securities Corp. of Indianapolis,
lnd., for
offering to residents of Indiana.

y>i

•

Scripto,

Inc., Atlanta, Ga.

(9/18)

Aug. 15, filed 360,000 shares of class A

y'f

ii »cc—ao

c».o^k.

——

expenses incident
R. Reynolds &

>

common

Strategic Metals, Inc.,
Tungstonia, Nevada
(letter of notification) 1,200,000 shares of

it U. S. Electronics Development Corp,
(letter of notification) 299,990 shares of common
stock. Price
At par ($1 per share). Proceeds — For
manufacturing and selling of precision capacitors. Office
—1323 Air Way, Glendale
1, Calif. Underwriter—None.

Jan. 4

stock (par

to

Co.,

cenis

pei

mining operations.
Salt

Lake

cents), of which 40,000 shares are to be offered to of¬
Price—To public, $7 per share; to
employees $6.67
per
share.
Proceeds — To reduce

Aug. 21

—

Underwriter—-

City, Utah.

Postponed.

50

com-

Proceeds—For

snare.

Offering

—

ficers and employees.
bank

loans, and for expansion and working capital.
Aug., 15 filed 360,000 shares of class A common stock (par

Underwriter—Johnson,
vannah, Ga.

,

Lane,
'

Space

&

Co.,

Inc.,

'

(par $10).

Sa¬

per share; and of
common, $15 per share.
Proceeds—For improvements and
working capital. Of—91)9 West
Sprague Ave., Spokane, Wash. Underwrtterr—W. T. Anderson &
Co., Inc.,

Security Loan & Finance Co.
-July 17 (letter of notification) 200,000 shares of common
stock (par $1).
Priee—$1.50 per share. Proceeds—For
expansion program.

City, Utah.

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of

Office—323 So. State St., Salt Lake

March 1

Underwriter—Whitney & Co., also of Salt

t

com¬
machinery and working capital. Office—Stamford, Conn.
stock (par five
cents). Price—20 cents per share.
Underwriter—Dominick & Dominick, New York.
/ t
Proceeds—For mining expenses. Office
422 Paulsen
Blag., Spokane, Wash.
Underwriters—Percy Dale Lan- ; it Universal Automobile Club of America, Inc.
<
phere and Kenneth Miller
Howser, both of Spokane, ; Aug. 23 (letter of notification) 20,000 shares of commoft."
Wash.
v *
•' '
stock; Price
At par ($1 per share). Proceeds — For.
operating a credit out club.' Office ■— 3424 Kendall,.

City./

mon

Shangrila Uranium Corp.
(letter of notification) 300,000 shares of common itock.' Price-^-At paf. ($1< per share).
Proceed*—>

—

•

.Por/mining;

expenses. Underwriter~-Western State*' In*
vestment Co., Tulsa, Okla..
.

\

March 18 filed 470,000 shares of common stock

'

"

eent$)*iPriee^^t4h^
stockholders.

Proceeds
Underwriter-^-None.

—

t

stock (no par).

(par 10

Price—$6

per

•

Tennessee

—

Wheatridge, Colo/ Underwriter—None;

Bldg., Denver,
y*'vyv* y"!''y '/y ''

;

ceeds—To repay

due 1976.

(par $10).

Price—For preferred at par;
$10.75 per share. Proceeds—For addi¬

and for common,
tional working capital.
Co., Charlotte, N. C.

Underwriter—R.

S.

Dickson

(9/18)
Aug. 10 filed $4,000,000 of first mortgage bonds, series
C, due 1986. Proceeds — To repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; William R. Staats & Co. and Hornblower &
Weeks (jointly); White, Weld & Co.; Merrill
Lynch,
Pierce, Fenner & Beane. Bids—To be received up to
noon
(EDT) on Sept. 18 at First National City Bank of
New York, 2 Wall St., New
York, N. Y.
Southern Union Oils

■

second

notes

Office—801

For

(par 25

drilling

der

Thermoray Corp. '-lyyyy

per

Louisiana

laws.

Underwriter—Frank
y,

;

Keith

&

Co.*

,,,

.

it Ute Uranium, Inc.

/■

Aug. 24 (letter of notification) 7,254,700 shares of com¬
mon stock to be offered for
subscription by stockholders,
Price—At par (one cent per share). Proceeds—For min¬
ing expenses. Address—P. O. Box 188, Cripple Creek,

e

com¬

stock

mon

$5

—

Inc., Shreveport, La.

*i

380,000 shares of.

Investors, Inc., Shreveport, La.

300,000 shares of common stock (no par).
share. Proceeds — To organize a new
wholly-owned legal reserve life insurance company ui>-

Price

notification) 300,000 shares of common
cents). Price—$1 per share. Proceeds—
for oil and gas expenses.
Underwriter—

,^Tune 29 (letter of notification)

(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working
capital, etc. Business
—Electrical heating. Office—26 Avenue
B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

Colo.

Underwriter—None.

Vanadium

Aug.

Togor Publications, Inc., New York
(letter of notification) 299,700 shares of com¬
stock (par 10 cents). Price—$1
per share. Proceeds
—For working capital and general
corporate purposes.
Office—381 Fourth Ave., New
York, N. Y. Underwriter
—Federal Investment Co.,
Washington, D. C.

14

Corp. of America

V/V/-''::''r/

filed

tures due

$10,000,000 of 4J/4% convertible deben¬
Sept. 1, 1976, being offered for subscription by

March 16

common

mon

,

stock

Universal
June 27 filed

Thomson Kernaghan &
Co., Ltd., Toronto 1, Ont., Canada.

writer—None.

common

Price—To be sup¬

To repay short term

Texas Calgary Co.,
Abilene, Texas

development of oil and gas properties.

cents). Price—$5 per share. Proceeds-jtTo exercise op¬
tions^ ^purchase additional properties and for general

—

June 29 (letter of
stock (par 25

Washington Bldg., 'Washington, D. C. Under¬

June 8 filed 1,000,000 shares of

(par $100).

Proceeds

for construction
program.
Underwriters—
Webster Securities Corp. and
White, Weld &
Co., both of New York.

:■

Southwestern Resources, Inc., Santa Fe, N. M.

preferred stock
and

Stone &

Southwestern Oklahoma Oil Co., Inc.
Feb. 27 (letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for
subscription by
stockholders. Price—$10 per share. Proceeds—For ex¬
penses incident to

Universal Fuel & Chemical Corp.
y/y'y.
May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.
?

Tennessee Gas Transmission Co.
(9/19)
Aug. 29 filed 200,000 shares of cumulative convertible

Ltd., Toronto, Canada

•<

Halsey, Stuart & Co. Inc.,

•

plied by amendment.

(par 15 cents) to be offered in units con¬
share of preferred and one-half share of

Underwriters—Muir Investment Co., and Texas National
Corp., both of San Antonio, Tex..'
y/yr.-'f'X. -•

•"

Aug. 24 filed 750,000 shares of capital stock (par $1).
Price-r641/^ cents per share. Proceeds—To selling stock¬
holders. Underwriter—None.
^
^
^ ^
•

>.■>■■■

and

one

common.) Price—$11 per unit. Proceeds—For working
capital, h' Office r — Gibraltar Life Bldg., * Dallas, Tex.

Pro¬

—

all of New York.

1

sisting of

short term notes and for construction
Underwriters
Stone & Webster Securities

Corp., White, Weld & Co.

Southern Nevada .Power Co.

.

Gas

Price—Tp be; supplied by amendment.

program.

&

stock

common

Transmission Co. (9/19)
Aug. 29 filed $50,000,000 of first mortgage pipe line bonds

bommon stock
.

Universal Finance Corp.
/ s'
v
Aug. 24 (letter of notification) 27,272 shares of 70-cents*
cumulative preferred stock (par $5) and 13,636 shares Of
.

Club

* Southern Finance Co., Inc., Lenoir, N. C.
Aug. 24 (letter of notification)- 4,000 shares of 6% con¬
vertible preferred stock? (par $25) and 5,000 shares of

'

yyV

common

share. Proceeds—For min-

; ing expenses. Office—310 Denver
;Colo. Underwriter—Noiie.

Toselling

•

,

.

• Technical Service, Inc.
Aug. 24 (letter of notification) 50,000 shares of

.

Skiatrort Electronics .& Television Corp.

-

16

stock (par one cent).

★ U. S. Polymeric Chemicals, Inc.
Aug. 21 (letter of notification) 16,725 shares of common
stock (par 50 cents)
being offered to stockholders of
record Sept. 5 on a one-for-four
basis; rights to expire
on
Sept. 20. Price — $6 per share. Proceeds — For

Spokane, Wash.;

Dec. 30

:

Mining & Milling Corp.
(letter of notification) 300,000 shares of com¬
Price—$1 per share. Proceeds
—For exploration and
drilling costs and for working
capital. Underwriter—N. R. Real & Co., Jersey
City, N.
July

mon

Price—Of pre¬

ferred, $100

,

"

Lake

United States

Suburban Land
Developers, Inc., Spokane, Wash.
Feb. 2 (letter of
notification) 920 shares of 6% cumula¬
tive non-voting preferred stock
($100 per share) and
2,160 shares of common stock

,

of

debentures

to

expire

est.

stockholders of record Sept. 5 at the rate of $1Q0
for each 13 shares of stock held;
rights-

Sept.

on

19.

Proceeds—For

Price—100%

expansion

and

accrued

inter¬

Underwriter—

program.

Kidder,-Peabody & Co., New York,

\

y

.

corporate purposes..' Underwriter—Southwestern

Secu¬

rities Co., Dallas,-Texas. \

Sprig Master Miner Co;

■

v

Aug. 22 (letter pf notification) 36,000 shares of cfass A
stock arid 15 shares of

stock.

Price—At par ($1
per share)/ Proceeds—For the manufacture and sale of
machine parts. Office—623 Continental Bank
Bldg., Salt
Lake

common

City, Utah, rUnderwriter—None.

-^ Standard Oil Co.

(Indiana)

,

,

16 shares held (with an
oversubscription
Price—To be supplied by amendment. Pro¬

common stock (par
per share. Proceeds—To reduce* bank
working capital. Business—Earthmoving
equipment, etc. Underwriter—White & Co., St. Louis,

StatesmanInsurance,Co.^ Indianapolis, lnd.

ers

at

the

State

Automobile

Insurance

Association."

Price—Proposed maximum is $7.50 per share. Proceeds
—To obtain a certificate of
authority from the Insurance
Commissioner of, the: State of Indiana to begin business.

'

Mo.

'

Sterling Precision Corp., New York
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and

of

Sept.

—Allen

&

eral

Jacinto

Okla.

San

Underwriter—Mickle &

preferred stock in the ratio of one share
preferred stock for each four shares of series A

series B preferred stock and one share of new
pre¬
ferred for each 10 shares of common stock held. Price—
At par ($10 per share). Proceeds—To

or

$1,400,000
subsidiary of

repay a

note held
by Equity General Corp., a
Equity Corp.; to liquidate existing bank loans and for

general

corporate

purposes.
Underwriter—None, but
Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares
(3.23%) of Sterling com¬
mon stock, plus
$1,800,000 of its convertible debentures.

Equity General

Stevens

(J. P.)

& Co., Inc., New York

;

June 28 filed $30,000,000 of debentures due
July 1, 1981.
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans, to retire
$950,000 of 4%% first
mortgage bonds and $368,679 of 6% preferred stock of
subsidiaries. Underwriter-—Goldman, Sachs &
Co., New
York. Offering—Indefinitely postponed.
"y
/
y




United Aircraft

Corp.

y//v.

;,

/

4

bonds, series M, due Oct.
struction

(9/18)

Aug. 28 filed not exceeding 330,915 shares of convertible

competitive bidding.
& Co.

tion

of

by

common

the basis of
common

Price—To
less

than

stock

be

(par $100). to be offered for subscrip¬
stockholders of

one

record

held; rights to expire

supplied by amendment

$100 per

Sept.

17,

share).

Proceeds

on

Oct. 2, 1956.

(but will not be

—

To

repay

loans, for equipment, working capital and general
porate

purposes.

1956

preference share for each 16 shares

bank
cor¬

Underwriter—Harriman Ripley & Co.

Inc., New York.
•

United

Inc.

Aug._29 filed 2,000,000 shares of
cents).

Price—$1.25

ment and

and Wertheim & Co.

Stone

Eastman
to

be

Wall

per

share.

exploration costs.

common

stock

(par 10

Proceeds—For develop¬

Office—Los Angeles, Calif.

Underwriter—S. D. Fuller & Co., New York.

Probable

'
y

Proceeds—For

con¬

bidders:

Halsey,

Stuart

(jointly); Salomon Bros. & Hutzler;
Corp.; White, Weld & Co.;

Dillon, Union Securities & Co. Bids—Expected

received

up

11

to

(EDT)

a.m.

on

Sept. 25 at 40

St., New York, N. Y.

'

Wait

Aug.

24

Disney Productions, Burbank, Calif.
filed

$7,500,000

4%

of

secured

notey

Peabody & Co., New York.
.

?

to

due 1960;

demand

(9/19)

subordinated

Price—To be supplied by

1, 1976.

Proceeds—$243,740

debentures, series A,

ment

convertible

of

redeem outstanding

balance for retire¬

Underwriter—Kidder,

-

•

:

1986.

1,

& Webster Securities

amendment.

(9/24)

■

Inc.; Kuhn, Loeb & Co., American Securities Corp.

debentures due Sept.

Cuban Oil,

y ■'

.yy

Underwriter—To be determined by

program.

preference stock

on

;.■/.1,;

•, •

Virginia Electric & Power Co- (9/25)

Aug. 17 filed $20,000,000 of first and. refunding mortgage

Offering—Put off indefinitely.

series B

new

.

,

Aug. 24 (letter of notification 100,000 shares of common
(par $1). Price—$3 per share. Proceeds—For the
and sale of a hearing instrument designed
for the hard-of-hearing. Office—1353 Mesita Road, Col Or
rado Springs, Colo.
Underwriter—Miller & Co., Tulsa,

yy

Building, Houston. Tex.

Co., Houston, Texas.

St., Boston, Mass.

stock

.

—

'

filed

4

manufacture

Union of Texas Oil Co.,
Houston, Texas
Jan. 19 (letter of notification)
240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—

Office

Co., Inc., of Florida, Miami, Fla.y,

Vicon, Inc.

Offering—Postponed indefinitely.

incident to oil production.

Fla. /

Miami,

'

Co., Bache & Co. and Reynolds & Co., Inc.,

For expenses

Inc.,

200,000 shares of capital stock (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
ment.
Underwriter—Venture Securities Corp., 26 Fed¬

Union Chemical & Materials
Corp.
May 25 filed 200,000 shares of common stock (par $10).
Price—To be
supplied by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
all of New York.

Mines,

* Venture Securities Fund, Inc., Boston, Mass.

-

.

Underwriter—None.

Diamond

lumbia Securities

for

.

July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and
employees of Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬

Venezuela

Aug. 31 filed 1,500,000 shares of common stock. Price-rAt par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela.
Underwriter—Co¬

Manufacturing Co., Roanoke, III.

and

.

(letter of notification): 7,000 shares of common
(par one cent). Price—$7 per share.; Proceeds—■
selling stockholders. Office — 2108 Jackson Avet*
Evanston, 111. Underwriter—Arthur M. Krensky & Co.*
Inc., Chicago, 111.
" ~J

Price—$6.50

loans

,yT

To

Aug. 20 filed 50,000 shares of class A

$1).

III.

stock

ceeds—For construction program.
Underwriters—White,
Weld & Co. and Stone & Webster Securities
Corp., both
of New York.

Ulricl*

Industries, Inc., Evanston,

Jan. 24

share for each

privilege).

-

Sept.. .11 filed .$8,850,000 of Participations in the Em¬
ployees Savings Plan of the American Oil Co. and
subsidiary, companies, together with 145,380 shares of
Standard capital sock (par
$25) which may be purchased by the Trustee-under, the Savings Plan.

Vance

• Transcontinental Gas Pipe Line Corp. (10/2)
<
Sept.«..lQ filed 441,250 shares of common stock (par 50
cents) to be offered for subscription by common stock 'holders of record Oct. i, 1956 at the rate' of one
new

<

Continued

on

page

42

-I-

,v;-v
-

The Commercial and Financial Chronicle...

42

Thursday, September

(1110)

13,1356

"

Continued jrom page
Western

41

Securities Corp. of

'

Prospective Offerings

New Mexico

(letter of notification) 50,000 shares of common
stock.
Price—At par ($1 per share). Proceeds—To start
a dealer or brokerage business.
Office—921 Sims Bldg.,
Albuquerque, N. M.
Underwriter—None.
Feb. 13

^ Western States Natural Gas Co.

Miami, Fla.
Feb. 20 it was reported early registration is expected
of 150,000 shares of common stock. Price—Around $4.25
Products Corp.,

Air-Vue

&

share. Proceeds — For expansion program.
writer—Arthur M. Krensky & Co., Inc., Chicago,
per

American Petrofina, Inc.

;

UnderI1L

it was announced that following
with Panhandle Oil Corp., American

merger

Underwriter—Us-Can Securities,

Inc., Jersey City, N. J.
Wheland

Co.

Co., Chattanooga, Tenn.

:

sale of

Proceeds—Together with proceeds from private

Offering—Expected in October.

$1,500,000 4%% first mortgage bonds and $900,000 of
3?year unsecured 4Vfe% notes to a group of banks, will
be used to retire outstanding series A and series B 5%

Kuhn, Loeb & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co., Inc.

Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn. Offering — Temporarily postponed. Not

Aug. 20 it

Bank of the Southwest National Association

of

;;—Houston, Texas.

White Sage Uranium Corp.

Office—547 East 21st South St.,
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.

Boston, Mass.

of 6%

in

common

stockholders

Carolina Power &

Price—

bidders:

Price-—$2 per share.

Inc., New York.

Underwriter—Foster-Manii,

1

Food Fair Stores, Inc.
Aug. 28 stockholders voted to increase the authorized
indebtedness from $35,000,000 to $60,000,000 and to in¬
crease
the
authorized common stock from 5,000,001)

(11/27)

shares

Halsey, Stuart & Co Inc.; Kuhn, Loeb &

to

Dillon &

10,000,000 shares.
Co., New York,

Underwriter

—

Eastman,
1

it Food Mart, Inc.
Sept. 11 it was announced company (following proposed
two-fof-dne.stock split to be voted upon Oct. 4, 1958) is

between

considering an'offer to

the

-

cumulative

preferred stock.
Price—At par ($100 per
share). Proceeds—For improvements and additions to
property. Office—128 East New England Ave., Winter
Park, Fla. Underwriter—Security Associates, Inc., Win¬

Park, Fla.

25

holders.
be

Inc.

filed

It is not expected that more than
42,500 shares
sold immediately.
Price—$10 per share. Pro-

^,r.,^ase of Plant and purchase

Office—Phillips, Wis.

Brothers

Oct. 23.

of equipment.

Underwriter—None.

Price—At par (25 cents per
share).

For development of oil and gas
properties.

July

9

Forest

St., Denver, Colo.

was reported
early registration is expected
shares of 6% convertible preferred stock (par
$10) and 66,500 shares of common stock (the latter to
be sold by certain stockholders).
Proceeds—From sale
of preferred to provide funds for expansion.
Office—

Rapids* Wis.

Underwriter

—

Loewi & Co.,

Consolidated Edison Co. of New York,
(10/23)

Aug. 28 the trustees authorised

the

company

and

500,000

by George B. Friden, Vice-President.
Proceeds

—

For mining expenses.

University Blvd., Denver, Colo.

to

are

com¬

are

be

offered

—

1,000,000 shares of

expenses.

$1

Ur

Air
L

e

are

per

of

;^askelite

^

#

r

York.

ngredient continues
o

Jv-ltawa :ian

1

Pineapple Co., Ltd.

Aug. -21 it was announced company plans some new fi¬
nancing.
Proceeds — To pay long-term debt and for

Underwriter—None, if stock is offered

forking capital.
stockholders.

..

Hawaiian Telephone

July 30 it

was

Co.
announced that company plans to acquire

h-)5% participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii
cable and, if approved by the directors on Aug. 16, will
hb

probably be financed by a debenture issue. Hawaiian
investment will be approximately $5,500,000. Underwriter—Probably Kidder, Peabody & Co.,
New York.

Telephone Co.'s

of

our

Herold

Radio

& Television

Corp.

July 25 it was announced stockholders on Aug. 10 will
vote on increasing the authorized common stock from
406,000 shares to 1,000,000 shares, in order to provide
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New York,

be the

Ynote

'

"

t'

distinction—this

success.

Wessjnc.
22 THAMES ST., NEW YORK 6

For

i

Manufacturing Co.

71 CLINTON ST.. NEWARK. N. J.

and Hallowell, Sulzberger

Leaders in Financial Printing Since 1923

& Co., Philadelphia, Pa.

High Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
Boston Corp. and Lazard Freres & Co. has been ap¬

pointed to study the possibility of a loan to be issued
on

the

American market.

common
—

/

;

16 it was reported company may be considering sale
$1,000,000 to $1,500,000 bonds or debentures.
Underwriter—May be G. H. Walker & Co., St. Louis and

"

Established 1923

Proceeds

fv

Ji|j/

It

com¬

Office—320 Ness Bldg.,

share.

;\

was reported company plans to issue and sell
shares of common stock.
Price—Expected at
$10 per share. Underwriter—Van Alstyne, Noel & Co:,
New York.
Offering-—Probably early in October.

necessary

printing.

Price—Five cents per share.

Underwriter—None.




Qualms

T

Underwriter—None.

—

■£*.

300,000

a

Quality Printing

I

1045 South

it Zona Mining Co., Salida, Colo.

mining

notab

Price—At market.

Office

Aug. 23 (letter of notification) 40,000 shares of
Price

possesses an

Underwriter—None.

Proceeds—For mining expenses.

(no par).

o

ke

Sept. 4 (letter of notification)

Salt Lake City, Utah.

For Finest

for the

★ Zodiac Uranium, Inc.
stock (par two cents).

-

V

No

(par 10 cents), of which 900,000

of

Inc.

.proposed sale of $40,000,000 first and refunding mortgage bonds, series M,
due 1986. Proceeds—To help finance 1956 expansion pro¬
gram.
Underwriter—To be determined by competitive

over

Aug. 24 (letter of notification) 1,400,000 shares of
account

V

of^about

Underwriter—Wayne

it Yellow Queen Uranium Co.

stock

■:

Aug. 27 it

it

of 34,600

Office—1529

Jewell Co., Denver, Colo.

Public Utilities Corp.
/
r
F. Tegen, President, announced that the
are
going to be' offered approximately

A.

?;;Har*field Stores, Inc.
Central Wisconsin Motor Transport Co.

common

Proceeds—

12,

64$000 additional shares of common stock (par $5) early
ih3957 on the basis of one new share for each 15 shares
hejjdi Merrill Lynch, Pierce, Fenner & Beane acted as
clearing agent in previous offering to stockholders. .,><

to

July 9 (letter of notification) 200,000 shares of

South

Sent.

stockholders

Bear,

(jointly). Bids—Expected to be received
Registration—Planned for Oct. 1.;;

Wyoming Oil & Gas Co.
stock.

and

t,.r

the company
of new bonds
new preferred stock. Proceeds—To
bank loans, etc., and for construction program.*

^General

Glore, Forgan & Co.;

Milwaukee, Wis.

74,016 shares of common stock (par $5)
offered initially for sale to the
present stock¬

be

rppa.y

Stearns & Co.

Wisconsin

Wisconsin Wood Products,

(10/23)

announced company plans to issue and

Webster Securities Corp. (jointly);
The First Boston Corp.; Lehman

,/

Utilities Corp.

April 2, A. F. Tegen, President, said that
plans this year to issue and sell $28,500,000

program. Under writers—To be determined by
competitive bidding. Probable bidders: Blyth & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Beane and Stone &

on

^ Winter Park Telephone'Co., Winter Park, Fla*
Aug. 24 (letter of notification) 3,000:! shares of 5%

was

Public

ani. $14,000,000 of

struction

—

June

Central Illinois Public Service Co.

General

sell 170,000 shares of common stock. Proceeds—For con¬

20-year

sinking fund de¬
bentures due 1976.
Price—To be supplied by amend¬
ment.
Proceeds
To
redeem
presently outstanding
first mortgage bonds, to repay bank loans and for ex¬
pansion program. Business—Meat packing firm. Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York
City.

.v..

looking toward the sale to the public of an additional
500,000 shares of common stock (no par). Underwriters
-—Merrill Lynch, Pierce, Fenner & Beane, New York;
and R. S. Dickson & Co., Inc., Charlotte, N, C,
*
Sept. 10 it

its stockholders of

—

was announced the directors have authorized
officers of the company to take necessary action

Sept. 12 it

(9/19)

Aug. 28 filed $20,000,000 of

stock

.

reported company plans to issue and sell
50,000 shares of common

90,000 and 95,000 additional shares of common stock.
Proceeds
For building of more stores. Underwriter —
Shearson, Hammill & Co., New York.

•

mon

was

it Carolina Power & Light Co.

Wilson & Co., Inc.

mon

Vickers Brothers, New

—

Bids—Scheduled for Nov. 27.

ments^

will

stock.

Van

Cd.;an4^Merrill tynch, Pierce, Fenner &.Beane (jointly)

Wilmington Country Club, Inc., Wilmington, Del.

to

Aug. 13 it

Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &

share/ Proceeds—For working capital. Office
Road, Cincinnati, Ohio.
Underwriter—

Maison

April 2 filed $1,500,000 Of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds
—For construction of a golf house and other improve¬

i

Light Co.

notes

Ham-

to residents of New York State

announced company plans to issue and

was

Underwriter

Flair Records Co.

Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); Equitable

None.

ter

—

retire

Underwriter—Hallgarten & Co., New York.

gram.

sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

able

l-for-7 basin.

on a

Underwriter

stock.

Sept.
(with

Fansteel Metallurgical Corp.

and

common

some

March 22 it

20,666 shares of class B
stock (par $1) to be offered for subscription by

per

October

,

Aug. 15 company announced stockholders will vote Oct.
3 on proposed issue and sale of $3,000,000 subordinated
convertible debentures.
Proceeds—For expansion ipro-

Alstyne, Noel & Co., New York.

Feb. 20 (letter of notification)

—3500

,

Corp.,

Aug. 27 it

Wlliamson Co., Cincinnati, Ohio

class B

company;

bidders:

York.

Burndy Engineering Co., Inc. (Conn.)
was reported company plans to issue and sell

subordinated cumulative
6,000 shares of common
units of a $400 deben¬
ture and three shares of stock.
Price — $500 per unit.
Proceeds—For construction and working capital. Busi¬
ness—Mountain recreation center.
Underwriter—None;
offering to be made by officers and agents of company.

$6.84

loan

Probable

reported company plans to issue and sell
Price — Around

was

$4.50 per share.

for working capital and
Underwriter—Allen Invest¬
ment Co., Boulder, Colo. Stock to be sold in Colorado.
stalment

•

about 200,000 shares of class A stock.

general corporate purposes.

debentures due Dec. 1, 1976, and
stock (no par) to be offered in

common

,

■

Eternaliie; fnc^ New Orleans; La.
May 28 it
1

Boulder, Cold.
July 16 it was announced company plans to offer and
sell 3,000,000 shares of its common stock. Price—At par
($6 per share). Proceeds—To construct hotel; set up in¬

City, Utah.

13 filed $800,000

{

Boulder Acceptance

—For mining expenses.

Aug.

subscribe for 75,000 additional shares
(par $20) on the basis of three new

capital stock

shares for each 20 shares presently held. Price—$40 per
share. Proceeds—To increase capital and surplus. Office

Feb. 13 (letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceeds

Wildcat Mountain Corp.,

reported Bank plans to offer to its stock¬

holders the right to

expected until sometime this Fall,

Salt Lake

was

\

it Douglas Oil Co. of California (10/2)
SeptJ 5 it was announced stockholders will vote
17 on approving an issue of $3,500,000 debentures
comjnon stock purchase warrants). Proceeds—To
outstanding 5% secured notes, repay short term
apd Jinance construction. Underwriter—Shearson,
milP& Co., New York.

rities Corp. and

first mortgage bonds, and for expansion program.

bidding.

comeptitive

by

,

Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
sell in December $24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1,1976, and 136,000 shares of common
the company's account and 61,000 shares for a selling
stockholder.
Price — To be supplied by amendment.

Light Co.

White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co. and Harriman Ripley & Co., Inc. (j.ointly); Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Leh¬
man Brothers; W. C. Langley & Co. and Eastman Dillon,
Union Securities & Co. (jointly); Blyth & Co., Inc., and
The First Boston Corp( jointly). Offering—Not expect¬
ed until early in 1957.
,

Inc., will offer to stockholders the

Salt Lake City, Utah.

-

termined

30

stock

—For development

'.'i'

Delaware Power &

Aug. 13 it was reported company plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds
;>;<—For construction program. Underwriter—To be de'

J

proposed
Petrofina,
opportunity to sub¬
scribe to about 1,000,000 shares of "A" stock of American
Petrofina.
Price—$11 per share. Underwriters—White,
Weld & Co.; Blyth & Co., Inc.; and Hemphill, Noyes &
Aug.

Aug. 24 (letter of notification) 500,000 shares of common
(par 10 cents). Price—50 cents per share. Proceeds
of oil and gas. Office—Felt Bldg.,

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp. Bids—
Expected tp be received on Oct. 23.
-V"';

will

depend

on

The time, amount and terms

market conditions.; Proceeds

loaned to firms in the Community for

-rTo be
expansion of coal

mines, coking plants, power plants and iron ore mines.

Volufne

184

The Commercial and Financial Chronicle

-Number 5568

(1111)
Hudson Pulp & Paper Corp.
June
some

a

:

,

>

f

1976.

*

^^

25

it was reported company may in the Fall do
public financing. Proceeds—For expansion. Un-

derwriter-Lee Higginson Corp., New York.

/

.

if Johns-Manville Corp.

stockholders

common

10 shares

on

held.

the

basis

of

one

working capital.
Co., New York.
7'. 7/7/. :/7 V>,, 7:7'./'/ 7': 77':' 7777''> :$'A
Kansas City Power & Light Co.

f,

announced

was

plans to

company

merge

its

Aug. 13 it
000,000 of

24 ^stockholders

approved

that

Fenner

(10/10)

&

Kidder,

Peabody

&

Co.

and

and sale of

knitting machines, etc.

'

~

.

it

1

was

to

offer

for

common

reported

proceeds

Dairies, Inc.

—

through
Inc.

To Foremost

Marsh

Steel

sell

Co.

(10/3)

$700,000

135,000 shares of common stock. Proceeds—JTo erect a new plant at Baton Rouge, La., and for
working capital, Underwriters—Cruttenden & Co., Chi¬
cago, 111., and The First Trust Co. of Lincoln, Neb.

/

that

part

of

the

cost

of

new

& Co. and Lehman

Norwood Gas Co.*

some-

Ltd.

ing

bidding. Prob¬

,

40-year debentures later this year. Proceeds—For con¬
struction program. Underwriter—To be
determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Morgan

stock
19

(par $5)

shares

on

held

Proceeds —For

on

or

about Nov. 1, 1958 the right
shares of common

30,000 additional
the basis of one

(with

an

construction

The First Boston

share for each

new

oversubscription
program.

Corp., New York; and The Robinson-

Humphrey Co., Inc., Atlanta,

Ga.

one new

'■'"?[-V'h'7v::777y7$77:

Steel

sell

Kuhn, Loeb & Co.; Harriman
The First Boston Corp.
Natural

Gas

Ripley &

Co.

Pipe Line Co. of America

Feb.

Inc.;

and

20 it was reported
company plans to issue and sell
late this Spring $35,000,000 of first
mortgage bondsjJ&e




of

River

to

the

Gulf

build

I

the

coast

State

—None.

of

(10/30)

struction

by

Co.

Salomon

and

Bros.

&

program.

Loeb

&

■

:

Underwriter

&

Co.,

/ .1 /

C.

R.

Williams,

that

about 280,000 shares of common stock (par $1) are to be
sold

in

were

connection, with

entered

into

April of 1955.

at

subscription

the time of the

Price—$10

per

contracts

original financing

share/ Proceeds—To¬

gether with funds from private sale of
tional

first

mortgage

bonds,

and

which

$35,008,000

$10,000,000

of

addi¬
5.6%

interim notes and borrowings from banks, will be used

be

determined

up

to 11

Bids—Tenta¬

a.m.

(EST)

on

*

Puget Sound Power & Light Co.
Feb. 15 the company announced that it estimates that its
construction
program
for
the
years
1956-1959
will
amount to

$87,000,000, including $20,000,000 budgeted for

1956.
This large expansion, the company
says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive
bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston
Corp.
St.

Louis-San

Francisco

7

Ry.

Sept. 5 company offered not exceeding $61,600,000 of
50-year income 5% debentures, series A, due Jan. 1, 2006,
154,000 shares of common stock (no par), and cash
equivalent to the unpaid portion of the preferred divi¬
dend which has been declared payable in
1956, in ex¬
change for its 616,000 shares of $100 par value 5% pre¬
ferred stock, series A, on the basis of
$100 of deben¬
tures, one-quarter share of common stock and unpaid
dividends of $2.50 per preferred share in exchange for
each 5% preferred share. The offer will
expire on Dec. 31,
1956, unless extended. Dealer-Manager—Eastman, Dil¬
lon, Union Securities & Co., New York. Exchange Agent

7

*

Bank, New York.

Sears, Roebuck & Co.

Aug. 13 it
ing

was reported that company may be consider¬
financing. Proceeds—To repay $200,000,000 bank
Underwriter—Goldman, Sachs & Co., New York.

new

loans.

if Sinclair Oil Corp.
Sept. 10 it

announced

To

Nov. 14.

was

announced that company is considering

selling $165,000,000 of

President,

—

Drexel & Co. (jointly).

Oklahoma City, Okla.

7lV7:7

(11/14)

bidding.
Probable
bidders:
Halsey,
Inc.; The First Boston Corp.; Kuhn,
and Lehman Brothers (jointly); Morgan

tively scheduled to be received

Hutzler

Oklahoma

of

'J7

Co.

7Stanley & Co. and

(10/30)

&

& Gas Co.

competitive

Stuart

■

Pacific Northwest Pipeline Corp.
20

(10/16)

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. [It is now planned
to issue
and
sell
$50,000,000 of first and refunding
mortgage bonds.]
Proceeds — To help finance con¬

of

Coast

($10,000,000

March

following 100% stock dis¬

Indiana, Inc.

Public Service Electric

a

$20,000,000 of its capital
within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬
sidiaries.
Business—A holding company.
Underwriter
stock

in

7

in

Inc.

■

July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and

Corp.

March 12 the company announced that it Is
estimated
that total construction expenditures
planned to start in
the current year and to be
completed in mid-1959 will
amount to a minimum of $200,000,000.
Underwriters—

Underwriter—None.

—The Chase Manhattan

—

National

Sabine

Oklahoma Corp.,

share for each 10 shares held

as of Nov.
1, 1956;
rights to expire on Nov. 21./ Price
Somewhat below
market price prevailing at time of
offering. Proceeds
—For capital and surplus account.
Underwriter—Mor¬
gan Stanley & Co., New York. '

Fuel Co.,

was announced that

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan,& Co.; Kuhn, Loeb & Co,,* Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly). Bids—Expected to be received on or about

Oct. 30.

on

★ National Bank of Detroit (11/1)
Sept. 10 it was announced stockholders will vote Oct.
15 on
approving proposed sale of 263,400 add'tional
shares of capital stock to stockholders on
the bas's of

$6

First Boston

cost

Securities

-v

ders:

(jointly); Harriman Ripley & Co. Inc. and Stone & Web¬
ster Securities Corp. (jointly); Lehman Brothers. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)

—

r/v.''-

bank loans and for construction
program. Underwriter—
To be determined by Competitive
bidding. Probable bid¬

Mississippi.

system will

Union

privilege).

Underwriters

the

'

share. 7777 77;

Public Service Co. of

July 2 it was reported company proposes to issue and
sell 60,000 shares of cumulative preferred stock
(par
$100). Underwriter—To be determined by competitive
bidding.
Probable bidders:
The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Eastman Dillon,

-A-Mobile Gas Service Corp. (11/1)
Sept. 7 it was announced company plans to offer to its
for

certificate

Ohio Power Co.

Stanley & Co.

'7

'

..

July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire

July 2 it was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Blyth & Co. Inc.; Kuhn, Loeb &
Co.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp. (jointly). Bids—Expected to
be received up to 11 a.m. (EDT) on Oct. 30.

Michigan Bell Telephone Co.
^
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell
$30,000,000 of

stockholders

a

Ohio Power Co.

White, Weld &

*

(Del.)

pected in September.

Norwood, Mass.

common

Co.: Blyth & Co., Inc.;
Kidder, Peabody & Co. and Drexel
& Co. (jointly); The First Boston
Corp. Bids—Not ex¬
pected to be received until December.

subscribe

in

aotes, convertible into preferred stock at maturity, and
stock). Underwriter—Salomon Bros. & Hutzler,
New York.

Metropolitan Edison Co.
July 2 it was reported that company is considering the
sale of $10,000,000 first mortgage bonds due 1986. Under¬

to

funds

of

.

•'

Corp.

stockholders. Underwriters—Morgan Stanley & Co. and
F. S. Smithers & Co., both of New York.
Offering—Ex¬

It is estimated that this gather¬
approximately $150,000,000. Type
financing has not yet teen determined, but tentative
plans call for private sale, of first mortgage bonds and
public offer of about $40,000,000 of securities (probably

(Canada)

writer—To be determined by
competitive
able bidders: Halsey, Stuart & CoJ
Inc.;

treasury

necessity to
364-mile submarine gas pipeline off-shore the

New York.

common

for

Louisiana from

reported company plans to issue and sell
debentures.
Underwriter—White, Weld & Co.,

7- "...

i

tribution to stockholders of record Aug.
28, 1956, a public
offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain

Nov. 18, 1955, David C. Bintliff, Pres., announced com¬
pany has filed an application with tne Federal Power

was

7.

Gathering Corp., Houston, Texas

Commission

•

Park, Fort Lee, N. J.

Oct. 16.

Offshore

Brothers, New York.

Petroleums

and

per

Pocahontas

was

the State of

Ar Merrill
Sept. 6 it

debentures

reduce indebtedness to parent.

—

;y '7-■

Pittsburgh Rys. Co.

July 27 it

System .owns 2,791 shares out of the 2,810 shares out-'
standing. Price—At par ($106 per> share) * - Proceeds—TTo

May Department Stores Co.
July 19 it was announced that this company may under¬
take financing for one or more real estate
companies.
Proceeds
For development of branch stores and re¬
gional shopping centers.
Underwriters—Goldman, Sachs

y/ ■:'

was announced that Standard Gas & Electric
Co. will offer to its stockholders
rights to subscribe for
540,651.75 shares of Pittsburgh Rys. Co. Price—About

announced company has been authorized
e to
offer rto its stockholders 1,405 additional shares of
Cbmmoft'Stock on a l-for-2 basis. New England Electric

tures due 1966 and

"'

'

■

Sept. 6 it

reported company now plans to issue and
of 5^2% convertible sinking fund deben¬

-7

7:'

•

was

-7 y:

SEC preparatory to an
equity offering planned to take
place later this year. Business—To
explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway. New
York, N. Y.
7

Underwriter—Probably Blyth & Co.,
7 y:777.:; 7777- 7.7; 77777777/ 7

Underwriter—Allen & Co., New York.
•

•

Sept. 10 it

issuance of

•latter part of year.

power

Proceeds—To pay,
project to cost an esti¬

May 4 it

right to subscribe 7 July 19 it was reported company plans to finance its
1956 construction program (costing about
stock of Lucky Stores, Inc.
$40,000,000)

at the rate of eight Lucky shares for each 100 shares of
Foremost stock held (with an oversubscription privi¬
lege). Price — $12 per share,

new

•

public.

April 9, Walter E. Seibert, President, announced that
company will soon file a registration statement with the

Foremost's stockholders the

630,000 shares of

for cost of

Pan Cuba Oil & Metals

Northern Natural Gas Co.

Inc., voted

the general

as

-■7\-

:

Lucky Stores, Inc.
7 /
;
Aug. 28 the directors of Foremost Dairies,

'

21, Irving Rosenthal, President, announced that
company plans to purchase another amusement
park and
merge the two and then sell stock to public.

equipment will be provided by banking or other similar
credits and the balance by an
offering of securities to
existing stockholders or to the public or both. Under¬
writer—Probably Lee Higginson Corp., New York.

„

^

Aug.

if Northeast Airlines, Inc.
Sept.

well

Palisades Amusement

White,

Weld & Co. (jointly).

D.-C., for the purchase from the Attorney General of
the United States of 158,025 shares (63.21%) of capital
stock (no par) of this company. Business—Manufacture

.

•

$217,400,000.',:,;i/7 77:

be received

up to 11 a.m. (EDT) on Oct. 10
at the Department of Justice, Office: of Alien/ Property,
Room 664, 101 Indiana Avenue, N. W., Washington 25,

„

was

as

in part,
mated

.

Beane,

,

$60,000,000 on a revolving bank loan which will be
through the sale of bonds to institutional in-

vestors

bidding.7

Ar Lieberknecht, Inc., Laureldale, Pa.
Bids will

.

reduced

a

-

Weld &

reported company plans to sell about
$32,common stock to the
organizing companies and
arrangements are expected to be made to
borrow

up to

probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
proposal increasing»
& Co., Salomon Bros. &
Hutzler, Eastman Dillon, Union
bonded indebtedness of the company by $20,000,000. Un-/
7 Securities & Co. and Woody Struthers & Co. (jointly);
derwriter— To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.. Inc.; The First 7 Lehman Brothers; The. First Boston Corp.; Equitable
Boston Corp. and Blyth & Co., Inc. (jointly); Equitable;; 7 Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Cp^and White, Weld & Co. (jointly).
Securities Corp.; White, Weld & Co.-and Shields & Co.
(jointly); Kuhn. Loeb & Co., Salomon Bros. & Hutzler
7v New England Power Co.'-,'
and Eastman Dillon, Union Securities & Co.
(jointly);
Lehman Brothers and Bear, Stearns & Co.
Jan. 3 it was announced company plans to Issue and sell
(jointly).
Amount and timing has not yet been determined (prob¬
$10,000,000 of first mortgage bonds during-October
of 1956,
Underwriters—To be determined by competi¬
ably not until first half of 1957).
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
1 Lee Offshore Drilling Co., Tulsa, Okla.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
man
Aug. 20 it was reported company plans registration in
Dillon, Union Securities & Co. and Wood, Struthers
& Co. (jointly); Lehman
September of $2,500,000 of convertible class A stock.
Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
Underwriter—Rauscher, Pierce & Co., Dallas, Texas. 777

April

soon.

Pacific Northwest Power
Co.

Co. and Amesbury Electric Light Co., into one
company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant
company, the
name of which has not as yet been determined.
Under¬
writer — May be determined by competitive

Proceeds—For

plant expansion
Underwriter—Morgan Stanley &

and

it

Registration—Expected

Electric System

robsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric

share

new

3

Underwriters—White,

43

Co., Kidder, Peabody & Co.; The Dominion
Securities
Corp.; and Eastman Dillon, Union
Securities & Co.

xx

New England

Jan.

Sept. 5 it was announced corporation soon plans to offer
about 650,000 additional shares-of .common stock to its
for each

to construction
program.

**a*fey' Stuart & Co. Inc.:
^
L|hman Brothers* and Eastman
Dlllon' Umon Securities & Co. (jointly), \
»

^

;

Underwriter—If determined by competitive bid-

tures

to

holders

be
on

offered for
basis

of

shares of stock held.
on

the

financing

program

and

on

convertible

subordinated deben¬

subscription by common stock¬

$100

of

debentures

Stockholders

Oct. 30.

are

for

each

nine

scheduled to vote

Proceeds—For expansion

general corporate

purposes.

Underwriter

—Smith, Barney & Co. and Merrill Lynch, Pierce, Fen¬
ner

&

Beane, both of New York.

Continued

on

page

45

•.

"

I

44

.Th«BS6tayT September

The Commercial and Financial Chronicle

(1112)

,

13,1956

Financing Chilli's Education Contest Winner
Investing in Common
'

Stocks for Income

through

yj.-.A
;

.; i

By ROBERT R. RICH

National Stock Scries
ei-

'
::Hugh Long - Makes National Survey

ob--

mutual fund, the primary

jective of which is to provide an
investment in a diversified group
of common stocks selected be¬
cause of their relatively high cur-"

yield and reasonable ex¬
pectance of its continuance with
regard to the risk involved. Pros-

:

-

may

to. replace

Che

of

theory' with' facts, Hugh W. Long and
national underwriters pf mutual

largest

..

in¬
In meet-

funds, is conducting the first "Hve'? survey of professional

rent'

vestment/ opinion
,

undertaken oh a national scale.

ever

country, the Long Company lis

jngs .being held throughout

and other information
be obtained from your in-?

pectus

order

* In

^

Company, one

.

vestment dealer or:

*

'• .-*•

tape-recording discussions at meetings with prominent and suc¬

v

cessful investment dealers on^suefct subjects as the need for equity

Securities &

National

Corporation

r-:;;Research

investing, its place in

f|

related

■

120 |roodway>

New York 5, New

our

methods of interesting the

economy,

public in ^uch investing, financial planning for retirement and

Established 1930

York
1

*

subjects.

inyestment

edited

vestigation,

are

to

'

.

....

,

use

for

business.

the investment

.

being pressed

the. survey

As

phase of the in¬
into discs. These will be available
covering one

eadh

tapes,

public meetings of an -educational nature" and, internally, '

at

tabulated and summarized, and

will ; be

be made

Glenn

O.

available,.

Kidd,

;

^

Henry J. Simonson, Jr., left, President of National Securities

completed, results

When the survey is

training.

employee

will

experienced

Long organization and for. its investment correspondents

for the

•

in

success

progresses,

v

.

actually believe, and by what methods they are

men

achieving

'

^

•'

The purpose of this survey is to determine what

;

who has travelled more than 12,000 miles in the past' three

pany,

-

;

;

-Prospectus frpm "
'

-

?

PHILADELPHIA 3, PA.

or

the

survey

a year or more

firms—stock

investment

of

types

will continue for

counter dealers, and

investment dealer

your

CFC

?

recording these interviews, revealed that

and

over-the-

goal is to create

body of authentic and authoritative in¬

a

Mr.

Tvo
,orlfolio

«eca"l'e8

of

ot

to the

ible

In short,

public.

we

>most success."

i

served

Vance, Sanders

corporated
icome

Fund

On

ob&le
ue

risk

of

without

of

prmcpaG

underwriter

Massachusetts

Boston

Fund

investment

A

prospectus

fund

is

available

investment

your

published

each

on

a

and

Investors
other

and

executives,

Trust,
mutual

accountants

on

lawyers

"The

Vance

Sanders Contribution Formula for

dealer.

Profit Sharing Retirement Plans."

The Parker Corporation
200

The

Berkeley Street

new

Boston, Mass.

panies
fixed
that

firm

points out that under

Treasury
are

no

Regulations,

com¬

longer bound by a
formula,, so
retirement

contribution

profit

\

sharing

the

p

more

standpoint

net

serves

any

as

a

the

year

taxes, but

maximum

tax-de¬

ductible amount.
document

Sanders

equipment.

■

,

dustrial

Election Not Seen

the

a

kit

Method

supplement to
of

of

the

Vance

creating

Affecting Stocks

and

Regardless

the

18.5%

election

ber—Democrats or Republicans—

the level

Method, originated five

ing

years ago,

has been followed by hundreds of

in establishing
sharing retirement plans.

profit

common

on

influence

prices,

stock

Godfrey

to

P.

accord¬

Parkerson,

Vice-President of Cal¬

Executive

Bullock, Ltd., managers
of
funds with assets of over

vin

mutual

In
10

a

Mr.

PUTNAM

effects

of

issue

of

nomic

factors,

tions,

and

not political con¬
Presidential
elec¬

determine

the

prices

of

securities.

of ^Boston

1916,

Parkerson

Mr.

re¬

ported, "the results were about a
standoff." The average level of in¬

of stock

following five

following one
change

no

favor¬

no

either,^"J he

"There

in

prices.

played

politically

de¬

.

Demo¬

six

were

cratic victories: In three instances,
next

the

a'

decline

there was
On the Republican side,

rise."

Parkerson pointed

Mr.

was one

of rise,

out, there

of decline, two years

year

and one year of no change.

"Regardless
the election in
son

showed

year

the other three,

and in

of the outcome of
1956," Mr. Parker¬

predicted, "the vitality of the

American
strated

past

"In the 10 Presidential elections
since

was

market

clared.

"Bulletin,"

Parkerson declared that eco¬

ventions

FUND

the

prices, published in the

stock

September

Qeorge

of

Presidential elections on com¬

mon

ites

and

there

"The

a

review

year,:

higher,

Presidential election this Novem¬
there will be no strong

11.6% lower than in

was

election

elections the same index-averaged

wins

who

of

prices in

stock

following - each of four

administering profit sharing re¬
tirement plans by simplified pro¬
cedures, specifically designed for
companies of moderate size. The

companies

-

common

year

the

$400,000,000.

The

•

elections

The bulletin is
the

in the Euro-

re¬

right to contribute in
the

for four years during

during which period he was on duty

Theatre of Operations, and

pean

fixed percentage of £

before

Master's Degree in Business Ad- '
He ■;

navigator with the Air Force

a

Lauretta,TO;

Donald, 5; and Peter, 1. Mr, Biasi attended

emerged from the service a First
Lieutenant. At present he holds the position of budget adminis¬
trator for the Kearfott Co., Little Falls, N. J.', a. subsidiary ofJ
General Precision Equipment Corp., manufacturers, of electronic

of

employee

income

as

War II,

World

de¬

A

tribution

Company,
shares

for

companies, have just
special bulletin for

corporation

from

&

Sanders

principal

the

ployer.

Profit-Sharing

Vance,

from

even

and the em¬
flexible contribution
formula is suggested, under which
a
company sets a minimum con¬

Releases Bulletin

fund

,»,»al

sirable

both

be

may now

the parents of five * ;

are

in age from 10 years to 1. They are

the College of the City of New York in 1951.

-

plans

Ann,

wife

his

and

Brooklyn College and took his
ministration at

■

■

38,

Frances, 8; Robert, 7;

intend to show, not how we think the

story should be told, but how it is actually being told with the

GROWTH of

Biasi,

children ranging

ing young people for our business and in presenting our story

firm.

stockholder relations consulting

own

in all parts of the country.

who have been successful

40

its

years,

selected

the

a

outlook

for

a

stock, especially

probability
in

the
long-

over

indicates

common

increases

demon¬

as

growth,

favorable

term

with

economy,

by

of further
living,"

the cost of

"A BALANCED FUND"

American
is

a

mutual

common

quality
this

ad

investment

stocks

and
for

selected

income

free

fund

of diversified

for

booklet-prospectus

calvin

Business Shares

investment

possibilities.

Mail

A

to

bullock

Established 1894
ONE WALL STREET.

Ask your Investment Dealerforfree
Prospectus or

Putnam Fund

NEW YORK 5

60
NEW YORK

Name.

•Addres"

The

write to

anced

between

selected

Distributors, Inc.

tLOS ANGELES

Balanced Investment Fund

Company

selected

Congress Street, Boston

CHICAGO

for
for

supervises
bonds

stability,

growth

Prospectus

and

and

portfolio balpreferred stocks
common
stocks

a

possibilities.
upon

,

request

ORLANDO

Lord, Aimi:tt & Co.
;




.

.

growth of bur^nat^^s.^wbin^j. J
will appreciably increase the educational funds' a vailable."f The; 1
contest was judged by Weston Smith, (looking on, right) Director /
of the Financial World's annual report survey/ and head of his ;

This will eliminate much of the theory and guess work in train¬
'

SeciariU^^i^ri

scheduling periodic investment?j'p a .;sound-mutual,

education by

formation about investing and the investment business, obtained
men

National Securities &" Research ■"

fund, which based on the future

this enormous task," Mr. Kidd states, "our

"In undertaking

from

of National-

The first' of the records resulting from the

month, with others following as additional information is gathered;

Investors

■

organizations specializing in the, distribution

of mutual fund shares.

Incoi.

under the sponsorship

held recently

was

and managesThe Rational

sponsors

study has been prepared and will be available at the end of this

main

which

test

Show in the New York Coliseum.

and -will include all

exchange members,

-

in the "Financing

Securities &"Research Corp. at the National Baby. and .Children's A;

-

months conducting

:

first prize

Vice-President of Hugh W. Long and Com¬

a

;

.

Emerson^^j^ winner of
My Child's College FJdqcatibh^ con-.

Anthony N. Biasi, of 5 Seneca Avenue,.

•

.

Corporation, is shown presenting a check for $190 to

& Research

comprehensive report

a

New York

■

—

Chicago

Atlanta

—

Los Angeles

-

|

Volume

184

Number 5568

i

.

.

The Commercial and Financial Chronicle

(1113)

45

'

equal to $37.28 per share on 1,.452,67L§hares then * outstanding.
T*
I**5*

TV-FumbNojv
r

^

*"

#

*

^

has

mon

Stock

total

Electronics

net

Fund,

assets

Inc.

of

reported

$13,665,489

"

given for full credit at
college or university. \

The subjects covered
during the
semester will include characteris¬
tics

of

open-end and closed-end
investment
companies, manage¬

on

Fund,
Inc., largest mutual fund concen¬ Sept. 7, 1956, compared with $10,trating investments in the elec¬ 432,197 a year ago. Per share net
asset
value is $24.80 on 551,047
tronic
field," marked its eighth
anniversary on Sept. 7, last, with outstanding shares, compared with
r

been

any

.v-

Scudder, Stevens & Clark Com¬

$135 Million
Television

'*

1

$43,480,000 reported for tlje first
eight months of 1955. In Tact, Mr.

PersonahProgress
Burtis
Lawrence, Jr.,
vice-president in charge

of sales

of

stated, sales in the first
eight months of this year are only
$3,000,000 short of total new in¬

I. I. I. Securities Cor¬

poration, distributor of Interna¬
procedures, investment com¬ tional
Investors
Inc.
was
an¬
pany
policies, management ap¬ nounced by John C. van
Eck, Jr.,
praisal, methods of distribution, President of the
Corporation. Mr.
$22.92 per share on 455,116 shares taxation, regulation of the indus¬ Lawrence
resources near record levels.
brings to his new post
try by Federal and state govern¬ a broad executive
outstanding at that time.
sales experience
On that day, total net assets of
ments, types of investment com¬ in both the national and interna¬
the) fund amounted to $134,974,pany
shareholders,
and
estate tional fields. He is a former offi¬
505; compared with $151,889 on
planning. Each topic will be dis¬ cer and director of ESAB
Sept.) 7,
Welding
1948, ' when the fund's
cussed by an expert in the field.
Corporation and the International
initial public offering of shares
on
Among the guest lecturers will Relay Corp. He also was a mem¬
was
made.
During the same pe¬
be
Robert E. Clark, Vice-Presi¬ ber of the executive staff of Shef¬
riod, the fund's outstanding shares
dent, Calvin Bullock, and Chair¬ field Farms, Inc.
%-':in the hands of investors in the
/Frans J. Weterrings
man of the executive committee
U-. S. and many foreign countries
appointed
A fully accredited
college course of the National Association of In¬ Assistant Vice-President and As¬
grew from 16,680 bn the first day
devoted exclusively to investment vestment
Companies; F. H. Bo- sistant Secretary of Nucleonics,'
of 4fc|e£ations "to 10,848,567 on the
companies will Be; given during land,
; Jr.,
Vice-President, Adams Chemistry & Electronics Shares,
amUjffirsary date.
;;;
; - the fall semester rat the, Bernard Express Co.; E. W.
Axe, President, Inc., recently organized v mutual
1 Incorporated • in August, 1948, M. Bariich School of Business arid
Axe-Houghton Funds; Harold X, fund, was announced by John M.
the fund offered its shares origi¬ Public Administration
of the Col¬ Sclireder,
Executive Vice-Presi¬ Templeton, President. Mr. Weter¬
nally at $4.56 per share (adjusted lege of the City of New; York.
dent, Group S e c u r i 11 e s, Inc.) rings is a partner of N.C.E. Shares
for a two-fpr-qne split in Janu-1
Key representatives of the in¬ Henry J. Simonson, President, Na¬ Distributor,; national: sponsor of
ary, 1954)./Eight years later, net vestment
the
Fund.J
company industry will tional Securities & Res ear c h
asset: value per. share was $12.44,
be
guest
lecturers
during
the Corp.; Lucille Tomlinson, author;
bf an increase in yalue of "172.8%. course, which will meet
Sales
every Harry I, Prankard, President, Af¬
During the period; the fund paid
Thursday evening throughout the filiated : Fund;
Robert
Osgood,
60
out
to
shareholders, a total
of semester from
Sept. 27 to Jan. 17. partner, Vance, Sanders & 'Co.;
$1.74 per share in realized capi¬ Dr. Harold S.
Continuing the pattern of pre¬
Oberg, director of Joseph E. Welch, Vice-President,
tal
gains, to bring total- capital research for the National
Asso¬ Wellington Co. and Chairman of, vious months this year, Welling¬
appreciation in ,the eight years to ciation of Investment
the public information committee ton Fund in August set another
Companies,
new
$9.62, or a gain of 211%. In addi¬ who was recently
sales record, with sales for
appointed to the of the NAIC; E. B. Burr, execu¬
tion, the fund paid Tout $2.18 to college faculty, will
the month reaching
supervise the tive director of
$7,497,000, the
the NAIC, and
shareholders from its investment
largest for any August in the 27course, Registration for the twoVincent Broderick, general coun¬ year
income/
;
:
point credit course, Economics 168,
j history of the Fund, A. J.
sel to the NAIC.
Wilkins, Vice-President, reported.
The portfolio of the fund on the takes
place on Tuesday
and
August's
record
sales
initial
exceeded
offering
date
contained Wednesday, Sept. 18 and 19.
The course has been planned by
the like month of 1955
common stocks of 18
by $1,415,companies in
When this course was offered Dr. Jerome B.
Cohen, associate 000.
;' • :
the electronic field, of which all
last spring, it attracted one of the professor of economics at the col¬
Wellington Fund sales in the
but two still appear among the
first eight months of this
fund's
investments. / The
year also
18
in¬ largest enrollments in the history lege, in cooperation with,the pub-

NAIC's

Wilkins

Arthur
elected

vestments

ment

W. Linton Nelson,
President, in
recent
of Delaware
summary
Fund's
major portfolio

changes,
Sperry-Rand, Chicago Cor¬
Delta Airlines, » Anderson-Prichard, First National City
lists

poration,
Bank

a

market value

on

same

eight years, had

662,050 on the
date, bnd the

value of $21,1956 anniversary

in

139

■

companies
one

tirely

a

current portfolio
showed Common stock investments

gaged in

of the Baruch School.

first

actively

;

inated

to

a

investment

to

$37.78

sharse

on

share

that

;

of

$54,149,967

a

-

from

page

period

high levels, Mr. Wil¬
Gross

to-date

60%

up

Registration

Prospective
Southern

Bell

|

(10/8),
Aug. 30 it

from

largest

stock

holding by

tember
10
from
15.80%
at
the
close of the first half. Steel main¬
tained its position as the second

largest industry investment, con¬
stituting 10.03% of resources on
Sept. 10 compared with 8.46% on
June
tion

30.

Mr.

to

week

Nelson

calls

atten¬

the

fund's1 purchase last
short-term government-

of

guaranteed bonds

on

a

3.85% basis

which, he notes, "points tip the
situation in today's
money market
more eloquently than
anything I
say."

The

fund

of its net assets in
govern¬
ments and cash as
compared with

of

4.01%

on

June* 30.; ^

-■

Co.

February

determined

1,

struction

by competitive bidding. Probable

Stuart & Co. Inc.; Morgan Stanley &
on

Oct. 8.

Registration—Planned for Sept. 18.

Jan. 30 it

Gas

Co.

of

California

competitive bidding.

by

INC.

on

•

Underwood

Sept. 10 it

Probable

sion

of

;

>

plans to issue and
mort¬

stock first

common

Proceeds—For

Underwriter—Dillon, Read
:/,/■"
a. "vT.:/:));.
T,'-;''.;./

con¬

Co.,

&

I

Corp.

■■■ri

announced

was

issue of

an

company

l-for-20 basis.

a

New York.

the

directors

are

debentures, convertible into

considering
stock.

common
as

required for

engineering, modernization of plant facil¬
new

products and general

operations in order to promote

Underwriter—Lehman Brothers,

expan¬

increased

sales.

New York.

bidders:
United

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston

'»v -h

Underwriter—

Service Co.

$5,000,000 additional

ities, development of

$15,000,000 of first mortgage bonds. Underwriter—To be
determined

mailed.

Proceeds—For working capital and used

reported company may in the Fall offer

was

are

March, 1957, $5,000,000 of first

program.

research and
Counties

or

Underwriter

Bids—Tentatively scheduled to be opened

Southern

Public

announced

was

gage bonds and

of 27-year debentures due Oct.

be

Halsey,

it

to stockholders

—To

;r/:

Co.

.

Proceeds—For construction program.

bidders:

7

sell in

Telegraph

announced that company plans to issue

was

J'J/'

w

Aug.

1983.

ago,

Corp.* White, Weld & Co.; Merrill Lynch, Pierce,

June

29,

States

Rubber Co.

H. E. Humphreys,

issuance

Fenner & Beane.

of

convertible

Jr.,

Chairman, stated that

debentures

is

one

of

several

possible methods the company has been considering for
Prospectus from your dealer

Southern Electric Generating Co.

or

Selected Investments Co.

May 18, it

was

announced that this

raising $50,000,000 to $60,000,000 which

company,

50% owned

for

by Alabama Power Co. and 50% by Georgia Power Co.,

convertible
pro

ties.

Loeb

Proceeds—Together with other funds, tb construct

may

be needed

plant expansion and working capital. He added that, if

subsidiaries of Southern Co., plans to issue debt securi¬

135 S. La Salle St., Chicago 3, 111.

rata to
&

debentures
common

are

issued, they will be offered

stockholders-.

Underwriter—Kuhn,

Co., New Yoik.

and operate a $150,000,000 steam electric generating plant

A mutual fund

the Coosa River in Alabama.

on
•

common

stocks

Fundamental

Co.; Equitable Securities Corp. and Drexel & Co.

(jointly);

Investors, inc.
For free

Inc.

descriptive prospectus send

this ad to your

investment dealer

or

by competitive bidding. ~ Probable bidders:

Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu¬
rities &

Inc.

and

Lehman

Brothers;

Harriman

Ripley

&

Co.

Goldman, Sachs & Co. (jointly); Blyth & Co.,

and

Kidder,

Peabody

Stanley & Co.

&

University Life Insurance Co., Norman, Okla.

Underwriter—May be

:/

determined

investing in

Co.

(jointly);

Morgan

June 21, Wayne

plans in
000

of not

will

Wallace, President, announced

company

future to offer to its 200 stockholders 500,additional shares of common voting stock at rate
near

more

expire

fered

than 2,500 shares to each stockholder.
on

Aug. 1.

td) residents

Rights

Unsubscribed stock will be of¬

of Oklahoma

only. Price—$2

per

share.

Underwriter—None.

'<

Hugh W. Long and Company, Inc.,
Elizabeth 3. New Jersey.

•

v

Southern

Pacific

Co.

(9/19)

Bids will be received by the company up to noon

(EDT)

Virginian Ry.

Aug. 20 it

on

Sept. 19, at Room 2117, 195 Broadway, New York 6,

ICC for

N.

A balanced fund

Y., for the purchase from it of $35,000,000 Southern

trust

Pacific

Diversified
Investment

1983.

RR.

first

mortgage bonds, series H, due Oct.

Probable bidders:

Loeb & Co.

1,

Halsey, Stuart & Co. Inc.; Kuhn,

Proceeds—For capital expenditures."

was

(10/4)

-

V:

reported the company has applied to the

authority to issue and sell $3,600,000 equipment

certificates, which will

mature

in

15 equal annual

installments. Probable bidders: Halsey, Stuart & Co.
Inc.;

Salomon Bros. &
& Co.

Hutzler; Kidder, Peabody & Co.; Blair

Incorporated.

Bids—Expected

on or

about Oct. 4.

Fund, Inc.
Southern
For free

Union

Gas

Co.

Washington Gas Light Co.

descriptive prospectus send

this od to your

investment dealer or

Hugh W. Long and "Company, Inc.,
Elizabeth 3, New

.

"""

Jersey.

Aug. 27 it
common

was

reported company plans

stockholders

of record

170,000 additional shares of
CFC




has

now

6.15%

$69,-

sales

common

industry, ; despite .its
drop
to
14.14% of total net assets on Sep¬

could

the

Carrier,

Registration—Expected early in September,'J

Southwestern

Offerings

Telephone &

sell $60,000,000

and

>,u.

shares

for

to

subscription warrants

None.

i

american

sales

amounted

ill'i

after

43

Securities Now in

as¬

Selected

at new

stated.

its

rrr

date.

year

were

kins

572,000,

,

.

en¬

This compares with total net
sets

Invest-

of

Standard of California. : ^
>
Oil is still shown as the Fundus

8

1,540,112

on

on

of

Oil:

Sept. 7, 1956, equal

per

Association

companies ment Companies.

Continued

phase of electronics

outstanding

National

en-

balance

Mills, U. S. Lines,
National Fuel Gas, Gulf Oil and

m

Scudder, Stevens & Clark Furfd,'
Inc. /reported total net assets oi
$58,178,666

lib information committee of the

It Was the

devoted

course

the

and all of Allied

Trm

another.

or

time

York, and First
Company as new

In,'the same period, Mr. Nelson
reports in his latest semi-monthly
Directors' Letter; the Fund elim¬

.

1948 of only $84,154; the
holdings, added to over the

New

investment positions taken by the
Fund since June 30, last.

.

Sept. 7,

of

Pennsylvania

Wellington

vestments had

the

a

.

.

for

Delaware Fund

Investment Trusts

•

Wellington

Portfolio Changes

Oberg to | /

Teach Course

in

entire year 1955.

of

one

new

offering to its

Sept. 26, 1956, of about

common

stock

share for each 12 shares held

subscription privilege); rights to expire

on

(with

in

the basis
a/i over¬

abo'ut 20 days

June

7

it

was announced
company proposes to finance
construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.

proposed

new

cost about

—

'V.

\

*

M

46

The Commercial and Financial Chronicle;.

(1114)

The

Indications of Current

following statistical tabulations

latest week,
week

Business Activity

month ended

or

Latest

Indicated steel

Equivalent to—
Steel ingots and castings (net tons)

Previous

Month

Week

AND STEEL INSTITUTE:
operations (percent of capacity).

AMERICAN IRON

Week

Ago

§2,463,000

Sept. 16

___

oil

Crude

runs

2,309,000

118,098,000

31

28,260,000

31

2,196,000

(bbls.)
Aug.
—Aug.
(bbls.)
Aug.
Distillate fuel oil output (bbls.).
Residual fuel oil output (bbls.)
—Aug.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Aug.
Kerosene (bbls.) at
——Aug.
i;,...
Distillate fuel oil (bbls.) at—
—Aug.
Gasoline

output

Kerosene .output

Residual fuel oil (bbls.)

at

GOVERNORS

7,952,000

27,045,000

12.841,000,

31,521,000
134,381,000
46,069,000

X.

Personal

Single

153,292,000

770,413

All

789,722

593,319

«

NEWS-RECORD:
U. S. construction

$322,829,000

112,909,000
130,954.000

465,535,000
151,106,000

97,202,000

33,752,000

10,150,000

9,950,000

601,000

597,000

anthracite

Pennsylvania

Sept. 1

127

120

(tons)

DEPARTMENT STORE SALES INDEX—FEDERAL

SYSTEM—1947-49 AVERAGE

=■=

100

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)
(COMMERCIAL

INDUSTRIAL)

AND

DUN

—

&

M.

196

5.622c

-.-Sept. 4

$58.50

/, $58.17

39.650c

39.475c

37.350c

37.700c

16.000c

—Sept. 5
—Sept. 5

—

100.375c

—Sept. 5

98.375c

16.000c

16.000c

15.800c

15.800c

13.500c

13.500c

—Sept. 11
Sept. U

91.06

-

^

102.46

-v'

106.21

f

«

103.97

!

102.80

104.66

.

10243

-

-

' :

Refined

99.20

101.14

105.86

100.65

101.47

102.80

107.80

101.14

101.97

103.64

108.34

3.21

3.21

3.08

2.87

3.71

3.60

3.51

3.38

3.23

3.69

4.04

■

4.00

3.81

Sept. 11

3.71

Sept. 11'

3.68

425.4

3.80
,

,

3.58

A

Llnters

Sept. 1

267,147

229,682

341,759

274,069

270,150

280,659

291,453

Sept. 1
Sept. l

95

94

95

101

418,025

425,635

524,084

665,766

Percentage of activity;
——
Unfilled orders (tons) at end of period.
100

*—

•

EXCHANGE

SECURITIES

dealers

by

.Sept. 7

(customers' purchases)—t

108.77

108.81

108.99

1,094,277

1,382,828

1,327,688

$76,721,948

$74,679,772

862,226

1,089,328

1,140,773

675,607

5,437

6,899

5,065

5,338

Aug. 18

856,789

1,082,429

1,135,708

-

(1,000-lb.

36,071

54,242

42,647

119,958

_

130,816

130,083

43,900

50,613

77,710

80,056

607

;;313

bales)—

A

31

593

$56,535,994

$58,411,850

July

224,530

272,250

296,950

177,600

Aug. 18

Other

Aug. 18

224,530

Aug. 18

448,450

sales

—

272,250

—

-

555,310

470,370

177,600

417,190

.Aug. 18

8,864,030

Total sales

.Aug. 18
OF

367,840

of

QUOTATIONS)—

,

39.625C

40.807c

38.150c

:

37.667c

36.002c

40.009c

15.800c

15,800c

14.800(S

.

£116.063

£113.659

£106.494

£114,489

Aug. 18

refinery
refinery

£112,040

A'" :V

New

York

Exchange

New

York

480,570

436,530

11,796,380

7,152,220

12,276,950

7,588,750

1,662,390

1,464,850

875,060

227,370

280,800

188,380

977,830

1,386,030

270,210
1,197,420

682,650

1,205,200

1,666,830

1,467,630

871,030

175,700

317,940

270,670

Aug. 18

18,300

18,900

17,700

19,000

Other

Aug. 18

191,270

321,310

Aug. 18

209,570

340,210

£92.341

A £89.716

12.500c

:
1

78.773d

y

•

.

:

90.137c

90.750c
:

78.500d

...

$2.79335

$2.78306
98.944c

79.119d
$2.78665

96.265c

A 9S,458c

_

$35,000

$35,000

*

r

13.000c

$255,000

V

$35,000

$255,000

$253,889

36.470c-

34.137«r

(per

33.000c

33.000c

30.667c

(per

33.$00c

33.500c

31.167c

New

Antimony

York

boxed

pound),
bulk," Laredo
pound)
boxed, Laredo—
refined
(per ounce)
refined
(per pound).

Antimony
Platinum,
tCadmium,

(per pound)
§Cadmium (per pound)
Cobalt, 97%
grade
Aluminum, 99% plus Ingot
Magnesium

ingot

(per

••Nickel

;

.

$1.70000
$1.70000

$1.70000

$2.60000

-

$2.60000

26.699c

pound)

SI-70000
$1.70000

-

-

$2.60000

33-750C

T-"

64.500c
•

pound)

'V V $1.70000;

25.900c

34.694c

pound)

(per

$84,000:

.

$1.70000

$1.70000

:

(per

$105,000

$104,037
y $1.70000

.•

24.333c
30.574c

64.500c

64.500c

$2.25

$2.25

$2.25;

:

183,010

Short sales

£89.710

V-

36.470c

UAntimony,

Bismuth

Aug. 18

£93.483

£94.017

;

tCadmium

1,218,190

13.500c

A 14.000c

£95.597

i

Straits

£105,920

14.000c

,

(check).

:

13.500c

90.614c

ounce)

per

15.000C

~

(per ounce)

(pence

16.000c

16.000c

v

9,281,220

438

1,224

.

August:

(per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)

the floor-

Total purchases

M. J.

&

month

pound)—

Gold

497,060
11,418,760
11,915,820

2,100

409

1,180

198

Common, New Yo^k (per pound)
Common, East St. Louis (per pound)
London (per long ton)
ttThree months, London (per long ton)

Tin,

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
Ss
Aug. 18
Short sales
Aug. 18
Other sales
Aug. 18
Total sales

(E.

for

Silver, London

TOTAL ROUND-LOT

.«

T

2,989

902

i

Sterling

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
A-.
Total round-lot sales—
.Aug. 18
Short sales

141

2,285

31

Zinc (per pound)—East St. Louis
\
§§Zinc, Prime Western, delivered (per lb.)
ttZinc, London, prompt (per long ton)
;
ttZlnc, London,, three months (per long ton)
Silver and Sterling Exchange—
f

—

296,950

90

(a)

(1,000 pounds)—
;

(per

Silver,
V

(a)

(a)

JtPrompt,

$34,452,337

Aug. 18

ACCOUNT

(a)

I

.

PRICES

Lead—

670,269

$43,664,019

Round-lot purchases by dealers—
Number of shares

..

sales

Total sales

Other transactions Initiated off the floor—
Total purchases

.Aug. 18

461,755

Short sales

.Aug. 18

83,450

Other

.Aug. 18

sales

Total sales

.Aug. 18

Total round-lot transactions for account of members—
Total purchases

682,097
80,310

570,908
654,358

753,466
833,776

342,400
360,100
616,395
105,070

158,630
177,630

115,100

631,048
736,118

427,485

542,585

2,662,427

Short sales

2,351,915

1,403,415

.Aug. 18

329,120

380,010

Other sales

392,980

322,480

.Aug. 18

1,740,008

2,460,806

2,069,128

2,840,816

2,170,868
2,563,848

1,268,765

.Aug. 18

.WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 == 100):

—

U.

S.

NUMBER

Sept. 4

-

114.7

89.1

88.7

89.1

Commercial vegetables,

1956,

as

against Jan.

l,

1S55

of

July

15:

103.3

102.4

85.8

82.4

84.2

122.3

121.9

117.8

basis of

236

263

236

310

206

244

.'Va

273

274
•

-

Food

271

grains

_

.

'

Oil-bearing

190

216

and hay

grains

182
218

222

225

Feed,

266

236

194

<

'

250

crops

259

257

387

products
animals

1

i

*453

232

232

236

253

:

338

453

247

242

246

252

171
-

♦

435

259

101.8

87.5

247

286

fresh

AA

—Sept. 4

114.6

122.2

114.2

111.1

runs.

125,828,319 tons.

SBased

tNumber

on

of

annual capacity of 128,363,000 tons 'as
orders not reported since introduction of

new

——

—

174

171

179

233

Poultry and eggs

231

249

•Revised figure.

producers'
1iDomestic

Monthly Investment Plan.

AGRICUL¬

OF
As

.

88.3

103.8

fIncludes 969,000 barrels of foreign crude




—

products

Meat

—Sept. 4
Sept. 4
—Sept. 4

;

All commodities other than farm and foods

1,

DEPT.

258

farm

4

Meats

figure,

S.

INDEX

—

DEPT. OF

Farm products.
Processed foods.

•Revised

U.

—

FARMERS

TURE -1910-1914=100

Dairy

commodities

BY

1,591,245

Commodity GroupsAll

RECEIVED

345,345

1,855,645

Total sales

PRICES

All

.Aug. 18

Jan.

41,654

33,710

35,525

31

July

Export

$47,603,905

Short sales

of

105,461

56,940

46,383

Stocks

8*4,453

$59,560,978

Aug. 18

dealers—
Number of shares—Total sales-

on

77,164

31

Produced

t

—

Other transactions initiated

78,293

113,201

28,643

July

Domestic

other sales—

FOR

74,363
105,296

(tons)

July

Average

Aug. 18

sales.

TRANSACTIONS

62,286

112,902

|4otes, Grabbots, etc.

Round-lot sales by

ROUND-LOT

203,090

31—

(running bales!—

Copper

Aug. 18

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales—

—

214,803

'

r

(tons)

Fiber

METAL

Aug. 18

Other sales

95,852,000

164,187

,

106.39

Aug. 18

shares

Dollar value

344.085,000
59,120,000

•105,688,000

(tons)

Shipped

COMMISSION:

Dollar value

short

73,667,000

84,298,000

Shipped

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD.
LOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
—

243,791,000

(tons)

Stocks

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
=

•328,051,000

53.915,000
56,962,000

■;■■■■

f.

Produced

(tons)

AVERAGE

/

31

Shipped
Hull

382,847

Sept. 1

63,010,000

Produced

,

3.29

409.5

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
,-

78,810,000

54,412,000

34,607,000

July

(tons)

Stocks

3.26

422.2

A

!

:

July

Meal—

Shipped

3.40

A

3.53

,,

38,162,000

37,083,000

A

(pounds)

(tons)

Produced

3.5S

3.68

3.66'

209,064

40,375,000
43,472,000

31

(pounds)

and

Stocks

Stocks

3.31

3.92

-

3.63

425.5

3.62

165,338

154,015

Hulls-

3.14

3.47

July

(pounds)

Shipped

3.32

3.70

131,087

151,035

177,469

.

Consumption

3.58

19,993

118,511

Oil—

99.04

A

141,965

July 31-.

~

Produced

3.73

of

;

(pounds)

Stocks

3.55

120.3

V.

(tons)

(pounds)

102.63

3ept. 11

_

mills

(pounds)

Produced

Cake

A

PROD¬

-A-

(tons)

Stocks

A

106.3

1

(tons)

Shipped

108.88

SEED

COMMERCE—Month

>

at

107.44

3.62

COTTON

OF

121.8

freight

tBased on the producers' quotation. tBased on the average of the
and platers' quotations.
§ Average of quotation on special shares , to plater.
five tons
or
more
but less than carload lot
boxed.
§§Delivered where

from

E.

St.

Louis

exceeds

0.5c.

••F.o.b. '-Fort

Colburne,

U.

S.

y

115.5

107.6

122.2

127.9

Ay

Oil—

Crude

107.27

Sept. 11

Customers'

Stocks

*110.52

MOODY'S COMMODITY INDEX

i f

Seed—

97.31

Sept. 11

Group

Customers'

AND

119.9

107.7

;

A'A

Crushed
-

95.03
?

SEED

A'

;

116.0

132.0

120.1

July:
Received

116.7

132.7

.

care

UCTS—DEPT.
Cotton

y

117.6

;

care

102.13

Sept. 11

,—

Group
Utilities Group.

of

Private

Produced

Railroad

Number

,

96.07

Sept. il£

Baa

Odd-lot sales

165.3

100.98

3ept. 11
Sept. 11

EXCHANGE

172.6

98.0

172.7

95.47

Sept. 11

.

—

1949

;

•Sept. 11 A,

Average corporate

Production

125.4

•Sept. 11

Group

Group

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds

Industrials

•

126.8

Sept. 11
Sept. 11

Group

Utilities

92.66
*

100.81>

100.65

-Septal 1: V"
-Sept.*11
Sept. 11

Baa

Public

91.11

100.32

;

.

,

127.7

COTTON

12.500c

,

:

96.9

14.800c

13.500c

105.7

90.5

15.000c

15.800c

103.2

107.5

117.5

95.375c

-V

119.4

104.8

97.5

-

,

———————————————— i

Aaa

99.250c
<■

122.6

A

123.1

44.425c

—Sept. 5

,

' Wy y-:.:' 9i.i

Public

44.375c

38.150c

'

;

91.4

Reading and recreation
Other goods and services

39.650c

110.8
103.6

,

124.2

,,

Personal

Sept. 5

y

girls'

Medical

—Sept. 5

—

103.30

Industrials

f

'

105.3

1

123.2

102.8

123.0

;

■;y

'

apparel

$43.83

$55.50

i

in.7

130.4

128.4

107.7

5.174c

$62.95

A a.

;

$59.09

5.619c

$63.04

111.7

v

119.9

y

Transportation
•

'

5.622c

132.5

Footwear

.

205

229

$63.04

—.

Public

237

and

;

109.2

:

,

121.4

102.8

boys'

-

121.9

111.1

128.7

operation

and

;

io4.7

A"

131.4
5

f

•

.__

'.
_j_

Men's

10,155,000

11,530,000

11,565,000

oil

_;

Apparel

125

A

133.2
_

fuel

and

124.2
103.7

98.0

107.7

112.8

electricity

fuels

Household

io4,".

Sept. 4
Sept. 4

Average corporate

Railroad

and

Solid

125.2

135.2

;

;

Housefurnishings

469,000

.

m.i

99.3

.

;

112,1

108.7

vegetables

114.7

"

113.2
112.1

r

121.8

Women's

10,955,000

Sept. 6

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

Aa

579,000

a A

125.8

*

fish—

1

Rent

9,449,000

9,240,000

;

products

Housing

J. QUOTATIONS):

Electrolytic copper—
"Domestic refinery at
Export refinery at
Straits tin (New York) at
Lead (New York) at—
Lead (St, Louis) at
Zinc (East St. Louis) at-

Aaa

7,008,000

A

i.

Pig iron (per gross ton)
Scrap steel (per gross ton)
(E.

15,263,000

78,897,000

2,991

1,834

116.2

114.8

Other foods at home

Other

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

METAL PRICES

24,199,000

117.0

products
and

1

1,873

113.8

and
bakery
poultry and

*

3,231

'

7,420
2,595

.

home

Fruits

85,905,000

,

Sept. 8

INC

BRADSTREET,

289,809,000

126,907,000

•
.

at

5,192
„

1947-49=100—

—

July:

of

'

1,880;

INDEX

1,570

.

3,099

A 3,127

5-,676

v

8,203

f

3,033

—

;

Dairy
-

RESERVE

.

EDISON

FAILURES

189,264,000

133,565,000
118,302,000

:

8,040

;

Gas

COAL OUTPUT (U. 8. BUREAU OF MINES):
Bituminous coal and lignite (tons)

5,903

'

$375,714,000

Sept. l
Sept. 1

municipal...

Federal

$616,641,000

.Sept. 6

State and

1,663

13,038

6,247

_

PRICE

Cereals

$243,863,000

.Sept. 6
-Sept. 6
.Sept. 6

Public construction

loans

credit

Meats,

.Sept. 6

Private construction

__A

____

25,476

15,077

1,674

items

ENGINEERING

Total

credit

$32,896

28,890

6,258 A

loans

Food

670,690

f

$37,093.

5,963

modernization

accounts

CONSUMES

Food
-

;•

___________

loans

Service

46,587,000

660.287

645,157

.

133.365,000

119,289,000
44,598,000

655,066

$37,143 A
29,103
15,208

1

goods

payment

Charge

34,945,000

Month

CONSTRUCTION

ENGINEERING

CIVIL

and

Non-instalment

■"aa-

784,366

Sept. 1
freight received from connections (no. of cars)—Sept. l

Ago

RE-

.

consumer

Repairs

7,482,000

177,561,000
29,415,000

175,816,000

175,571,000
32,401,000
138,449,000
46,783,000

31
31
31

.A

credit

Other

11,567,000

7,551,000
V1

FEDERAL

credit

Instalment

1,979,000

.

THE

short and intermediate terra credit
as of July 31; ~
v

consumer

Automobile

26,183,000

1,854,000
-

OF

millions

X Total

7,642,000

13,014,000
7,831,000

13,241,000

31

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue

6,661,876

27,523,000
2,009,000

31

Aug. 31

—

7,065.450
7,964,000

7,126,550
7,943,000

7,107,750

Aug. 31

(bbls.)

Year

SERVE SYSTEM—REVISED SERIES—Esti¬
in

Aug. 31

stills—dally average

to

Month-

CONSUMER CREDIT OUTSTANDING—BOARD

mated

each)

gallons

42

Crude

Previous

'

(bbls. of

output—daily average

condensate

and

of-that date:

are as

Month

95.7

2,154,000'

*2,429,000

'

of quotations,

cases

Ago

.

AMERICAN PETROLEUM INSTITUTE:
'

in

or*

eitker for the

are

Latest

OF

1

V

that dste,

on

production and other figures for the

cover

Dates shown in first column

Year

87.5

*98.7

§100.01

.Sept. 16

month available*

or

Thursday, September 13,1956

.

duty included^

tt Average of dally mean and bid and ask quotation at morning session of London
Metal Exchange.
ttDelivered where freight from East St. Louis exceeds 0.5c.

-

184

Volume

Number 5568

The Commercial and Financial Chronicle

...

(1115)

of

bonds,

plus

200,000 shares of
Close behind is

preferred

stock.

Southern

PrincetomUniversity Press,

RR.,- which is
scheduled to open bids on $35 mil¬
lion
of
27-year, first mortgage
bonds.

Co.

due

Income

Term

Trusts

$25

Tunisia

"World's

seek

Inc.,

$7.5

including
bond traders, is experiencing real
tribulations

trials and

these

Meanwhile, United
Corp.£will offer to share¬
first, 330.915 shares of

holders

First Boston

loans

A

.

weeks in protest against
stiffening cost of money, are
finding it less easy, to say the
least, than they might have ex¬

secondary

-

today

The Federal Reserve is holding
its foot hard on the brake-pedal

resents

Market

observers
Pacific

of

success

Telegraph's
brought

on

Utilities

Co.'s

of

sale

.

former has

The

of

4V4S
i

moved

to

up

momentum

and

'

Dual
r

The

to

rose

.

minum

and

finished

.

And

well

as

the

to

pears

fcest"

at

for

off

the

''second

to

coupons

the

current

detriment

of

ings

managers

offer¬

eye of port¬
and there is little

interest

of

show

and 4%%

catching the

are

folio

]'p

4*4%

of

those

Baltimore

Missouri

Pacific

cidedly "thin"

Ohio

&

Wisconsin

1949

Thomas R.

—

Individuals,
Atkinson

of

Eco¬

order

deal

000

in

for

income

rift

the,

parable 1955 period.

,

DIVIDEND

DIVIDEND

the

soundings

prospective
be

sure

of

job

SHARES

14
A

has

been

stock

1956
of

Wall

dividend
of

of

(12c)

share
the
capital
October
15,

this

stockholders

business

pany

York

of

September

record

28,

JOSEPH

September 10,

per

at

the

close

1956.

S.

STOUT,

loans

and

to finance

NOTICES

Provided

the

of

buyers

:

Cash Dividend No. 145

Consecutive

York

New

Common

in

been

business

given

that

the

Board

dividend of eight
($.0814) per share
Capital stock of the com¬
a

cents

respect of which dividends have
waived, payable Oct. 1, 1956 to

shareholders

record

of

Sept.

Transfer

11,

at

the

close

&

120

Broadway,

Honduras

will

not

K

closed.

be

DUMAS,

Secretary,

1956.

Rosarir

Company
New

York

N.

5,

September
DIVIDEND

The

Board

of

NO.

Directors

Y.

12,

1956.

416

v

this

of

Company, at
a
Meeting held this day, declared an interim
dividend for the third quarter of
1956, of One
Dollar and Twenty-five
Cents
($1.25)
a
share
on
the outstanding capital stock of this Com¬
pany, payable on September 28, 1956, to stock¬
of

record

September

E.

G.

at

the

close

of

business

A Dtverufied Closed-End

on

Investment

1956.

21,

Company

McDANIEL, Secretary-Treasurer.

on

of

Directors

de Pasco Corporation,
meeting held on Friday,
September 7, 1956, declared a
cash dividend of forty cents
(40tf) per share on the Com¬
mon Stock of the Corporation,
Cerro

Broad Street Investing

at

Corporation
A Diversified Mutual Fund

20 CENTS A SHARE

September 28, 1956,

on

of

stockholders

to

record

on

Payable September 30, 1956

September 17, 1956. The Trans¬

To Shareholders of Record

Michael D. David

Kenneth H. Chalmers
.

Secretary

1

*

'

Secretary

300 Park Avenue

•

New York 22, N.

New York 6. N. Y.

on

the

Payable October I. 1956

i

Record Date Sept.

i

18, 1956

Kenneth H. Chalmers

i

INTERNATIONAL MINERALS
& CHEMICAL CORPORATION

i

i

j
j

20 North Wacker Drive, Chicago 6

QUARTERLY DIVIDENDS

Secretary
65

Broadway, New York 6, N. Y.

|

|

i

•

j

4% Cumulative Preferred Stock
58th Consecutive

I

{

•

•

J

($1.00)

|
i
I

Share

per

I

I

|
i

$5.00 Par Value Common

•

I

Stock

j

Forty Cents (40tf) per Share

•

Declared —Sept.

I

6,1956

j

Record Date —Sept. 20,1956
30,1956

j

Y.

j

Regular

Quarterly Dividend of
One Dollar

I

fer Books will not be closed.

September 12, 1956

65 Broadway.

share

a

$2.70 PREFERRED STOCK

a

payable

*

share

a

the COMMON STOCK

67 Vt cents

St*XbmaXwtutf

Southern

Payment Date—Sept.

[

,
Vice President,

I

A. R. Cahill
Financial Division

1

j
|

Edison

California
Company

'•

j

PHOSPHATE* POTASH* PLANT FOODS* CHEMICALS |
INDUSTRIAL MINERALS • AMINO PRODUCTS
|

DIVIDENDS

The Board of Directors has
authorized the payment

zHi

-c.

-V

■■

_r

of the

following quarterly dividends:

7 ^

I

COMMON STOCK

13

H

INTERNATIONAL

Dividend

setting

DIVIDEND;
The

up

a

ac¬

be

assured

of

proposed expan¬

have

NOTICE

J5.

following dividends
been declared by the

Preferred Stock
A regular quarterly

No. 187

60 cents per

share;

:

payable

October

1,

ord at the close of business

no change in
plans of borrowers meantime,
week shapes up as a busyperiod
for
investment
bankers

September 14, 1956.

some

corporate

for market. In

$134

million

obligations
addition

substantial

slated

there

equity

of

are

deals

tap.

major project is Tennessee

Gas Transmission Co.'s $50 million




1956 to

record
ness

at

on

Dividend j
Wk

a

the

common

holders of record

Dividend No. 34

CONSECUTIVE DIVIDEND
The above dividends

Common Stock

stock

pay¬

share¬
September 18,

John H. Schmidt

Secretary

the close of

busi¬

A

quarterly dividend

per

share payable

on

of

60^

October

1, 1956 to stockholders of
ord

at

the

close

of

rec¬

Transfer books will not be
closed.

Checks

mailed.

Wm.

will

be

J. williams
Vice-President & Secretary

Checks
the

will

September 14, 1956,
clared

WESTCL0X

•

STR0MBERG
HAYD0N

RECORDERS

was

de¬

by the Board of Directors.
ANDREW W. JOHNSON
Vice-President and Treasurer

MOTORS

September 4,1956

mailed

from

Angeles, October 31,

business

BIG BEN

SETH THOMAS

be

Company's office in Los

p. c.

September 5,1956.

pay¬

stock¬

holders of record October 5.

stockholders of

September 14,1956.

are

able October 31,1956, to

1956.

:

'

.

4.56% CONVERTIBLE SERIES

dividend of 50 cents per

on

28 cents per share;

PREFERENCE STOCK,

The Board of Directors has de¬
clared

STOCK,

28 Vi cents per share.

.■■■

able October 1, 1956 to

quarterly dividend of
$0.25 per share on the Com¬
mon Stock, payable October
1,

St. Louis

182ND

share

Common Stock

next

TIME

CORPORATION

share on the
$4.25 Cumulative Preferred
1956 to stockholders of rec¬

PREFERENCE

4.48% CONVERTIBLE SERIES,
Dividend No. 38

dividend

of $1.0625 per

Stock,

SHOE

^
COMPANY

GENERAL

Board of Directors:

on

there is

4>\

TIME

of

1956.

15,

books

J.

Sept.

Mining

i

of

Board

The

Quarterly Dividend

in

the

The

-

NOTICES

declared

Secretary

1956.

brief

V

OF DIVIDEND

hereby

i

A

on

not

r1

| Corporation

107n.

Big Week Looms

several

is

one-quarter

the

on

CORPORATION

New
cents

day
on
Corporation payable

the

to

St.,

twelve

declared

\

Cerro .de Pasco

of

sion of facilities.

new

NOTICE

Directors

of

and

NATIONAL

a

'

;

,

SUPERCRETE LIMITED
Notice

NOTICES

Exchange,

GENERAL

broad

with

-

-

{

A $70 million, 25-year, under¬
taking involving sinking fund de¬
bentures, this project is designed
to permit the issuer to
pay off

what

Stock

30 cents

:

ceptance.

funds

York

illness.

NOTICES

and

which would find ready

bank

New

passed away Sept. 8 after

com¬

reported de¬
the bid side.

went through

to

the

Third Quarterly Dividends

observers.

of

.

Stephen J. Stroock, member of

DIVIDEND

|

ranks

UN:

Stephen J. Stroock

•

—

—

Plowing the Field

making

the

Printing Of¬
25,
D.
C.

fice,
Washington
(paper) 70 cents.

United States Foreign Policy 19451955
William Reitzel, Morgon

holders

£ ship:

Banking interests handling the
big
new
money
financing
of
Procter
&
Gamble, due on the
market today, really did a rounded
job of feeling out the situation in
advance, according to interested
They

in

U. S. Government

Finance

Department

.

'

I.

Sociology, Princeton
University, : Princeton,
N.
J.
(paper), on request.

/

are

on

Participation

$47t?78,000 compared

was

in

recent rail emissions like

more

Samuel

—

International

—

—

Pattern of Financial Asset Owner-

$411,641,00(Mn net sales and
operating revenues, and $43,073,-

older, lower
rate, corporates which have been
outstanding for a spell. Some of
the

Canada

nomics and

Business

1956—
Institute of Life Insurance, 488
Madison Avenue, New York 22,
N. Y. (paper).
\
<
J

the

seasoned list.
Current

of

and

Life Insurance Fact Book:?

moment.

liberal

more

Gerald G. Somers

—

ton 25, D. C. (paper).

market ap¬

coming

least

the

Coal

S.

with

Potential buyers naturally incline
toward

oper¬

ating revenues for the six month
period
ended 3June
30,
1956,
amounted to $443,202,000 and net

underwriting.

as

in

Research,
College of Commerce, West
Virginia University, M org a ntown, W. Va. (paper).

of

secondary

be

neUsales and

Consolidated

higher cou pons is having its effect on the
secondary market judging by re¬
ports of those who do a trading
business

of alu¬

its Chlloys into semi¬
and
finished
products.

DIVIDEND

Cited

Market
run

Settlement

*

.

current

modest

a

to

income
a

around

1%;-: points,
while. lhe latter,: after , getting
away rather slowly, gathered
premium.

company,

the fabrication

bauxite

recent Gulf

priced to yield 4.20%.

premium

the

offering,

more

Davis, Board Chair¬

Con¬

—

Progress.

—

Series,
World, 91 ChampsParis, France $6.00 per

Section,

Achieve

1001 Connecticut Ave., N. W.,
Washington 6, D. C. (paper), 50c
(quantity prices on request).

Bureau

the

Economic

on

Mining

primary-aluminum, from
mining
and processing of

■

4.23%: yield

a

ference

This stock rep¬

ducer of

point to the
Telephone ;'V&

recent

out

basis and to the
States

attract funds.

public

to

G.

—

,

can

made

the

Policies

Full Prosperity for All

who will
own
approximately 6%
of' the
common
stock
after
this
sale.
International Finance Corporation
Aluminum Co. of America will
booklet outlining operating
not receive any proceeds.
policies and procedures—Inter¬
The company and its subsidi¬
national
Finance
Corporation,
aries constitute an integrated pro¬
1818 H. Street, N. W., Washing¬

acceptance.
Bui
there is the comforting side, if it
may be called that, which indi¬
cates that if the borrower is will¬
ing to pay he

being

with

Economic
v;

Future

Constance

Brookings Insti¬
Washington 6, D. C.

Report by the President to the
Congress for the Year 1955—
Superintendent of Documents,

Documents"

Ely sees,

Katz
■

Prosperity and
Changes
in
National

Needed

the

U.

Economic

dom

Our

portion of the holdings

a

of

man

are

market

13)

of Arthur V.

finding it ad¬
visable to price new issues pro¬
gressively cheaper in order to
.

(Sept.

is

$115.75 per share.

right down the

including those for prime
names, are reflecting the resulting
stringency.

insure

America

in

the aluminum producer's stock at: Grievance

line,

Underwriters

Gaps

of

offering by The First Boston Corp.
and associates of 150,000 shares of

pected to get the funds they need.

rates

of

pany

distribution

stock of Aluminum Com¬

common

the

Olson

Two Approaches to the
ExchangeRate Problem: The United
King¬

Industrial

/V:'

> (paper)., 20c.

Offers Aluminum Stock

recent

money

71—

Section, Princeton
University,
Princeton, N. i J.,

the

over

No.

Faces

and

The

—

tution,
(cloth) $4.50

Short-

L.

Kaplan,

■copy.

Perform¬

Bibliography—Selected

References

Group

And borrowers, several of whom
bank

Executive

Relations

forsook the long-term market for
short-term

of

A

ance:

convertible preferred.

days

being caught between
marked
firmness in money- and
a dual market in debt obligations.

•

«.

Appraisal

with

what

and

4.

million.

Aircraft

The investment world,

by

Reuel

R. L. Gradishar—PrenticeHall, Inc., 70 Fifth Avenue, New
York 11, N. Y.
(cloth), $7.50.

million through sale of debentures
and Walt Disney Productions

to

Taxes
—

and

Allegheny-Ludlum
Steel
has
$16.3 million of debentures slated
with Wilson

Coblenz

Saving

-

,

A.

Princeton, N. J. (cloth), $3.75.

Pacific

47

halb,

September 10,1956

Treasurer

i

48'

The Commercial and Financial Chronicle.;

(1116)

its

BUSINESS BUZZ

as

whipping

a

Aids Cause of Graduated Tax
It

•

•

•

availability

boy for demagogues.
.

Tt

Thursday, September 13, 1956

.

is

believed

that

the

Eisen¬

hower

A

Bekind-tke-Scene InterpreUtion*

Capital

from the Nation'*

Administration, perhaps
unintentionally, has given broad

fl

Y!

aid

/111

M

JljL ff MAt

>

the

to

Withe

recommendation

President's

softer

C. — It
What didn't

WASHINGTON,

D

full-scale, TVreported,
full
dress public investigation of the >
steel industry
for raising the
price of sieel consequent upon •
happen was a
viewed,
radio

•

k

raising the wages of steel labor
to settle the strike for higher

;

is

A

of

Income,

Ing

brief shower, the pave- j

a

sidewalks steam

and

ments

oppressively hu¬

the air is

and

This

mid.

raises prices

industry
a

to settle

must be

there

strike

steel

a

hearing by the Joint Economic
Committee which will infer, as

price

is

not

j

of

:

paragon

who

are

at

Higher

directed
wages, prices,

■:

ernment

is no sign of a
report. The report is being carefully prepared by the staff. It j
may
or may not ever see the
light of day. It is even within 1
the realm of possibility that it; ]■
may pot be released to the pub;
,

before

first

the

Tuesday

in

All

situation for

they

vember, when there is a certain

Washington, in a manner
speaking, pavements noto¬
riously steam after hot showers
on even years every four years.
Why not now?
of

is not just a question that
members of the Joint Economic

-

It

Gold

stituencies
is

i

be beating the

Americans

has

Ac¬

speeches

are

nothing is

for

the

job, and
difficult to write,

natural than if
one
can
catch a Big Business j
Man Gouging The Public. V
'
v.N
V'.'--- '■ i
more

.

Events Change
The

of

news

the

situation

is

that events in the economy have
tiad a sobering effect upon the
recklessness

For the

of

politicos.

some

first time

the value

of

is beginning to

come into
Triple A bonds, new
issues, that is, broke the 4% lid

money

its

own.

that had
23

held

them

24 years of the

or

down

after

feeling that

not

the

dogmas

taught

by

J

to

price of $35

per

by

per¬

[

feits the official Dominion sub¬

sidy

averaging " something

$1.50
if

a

ers

per ounce.

;ij / A/:'/'

$1

HLBB

I

sands of

ciations

like

In other words,

mine decided to sell to buy¬
outside the Dominion Treas¬

the

of

reckless

more on

cial

tions,

its

so

any

obliga¬

it is known
is tied

Canada

up

The Cana¬

premium.

a

Government, of
more

course,

of

in

1A;::
thou¬

the

lending

the

dustry has in recent

onstrated

time

dem¬

"drag"

with Congress than the commer¬

cial banking industry, which has

Commer¬
their

years

far greater

a

difficulty
ocuous
•

getting

or

the

most

lending, except for government-/
sponsored mortgages, to

a

sum ;

equivalent to their capital.

narrowed the discretion of bank

management in the interests of

'"security."
scribed

It

and

mercial

Banks Taxed

Commercial

companies

are

banks

tern.
as

has

both

prescribed

pro¬

invest¬

ments arid curbed genius, dash,
and courage,? so that all com¬

•

shall fall

banks

dead level of

7

a

1

-

'

into

'

corporation income tax rate

Naturally,

as

commercial

banking has become more reg¬
ulated, cut, and dried, it has lost

on

its

their earnings, the same as any

almost

In

August

lion

more

persons

political

influence,

but

not

than 66.8 mil¬

lions.

Not

ugly

female,

counter
count

if she

merely

but

on

or

a

the

the

can

table

wait
if

her fingers,

hasn't

feeble

toothless

learned




and

on

she

a

can

especially
that it

is

in¬

in

pass

Ad¬

with

Congress,

legislation,

not

go

one,

the

Ad¬

but

two

the'eviL/W^

<;

;•

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's"

own

views.]

New Sutro Bros. Branch
A

significant departure in mod¬
brokerage offices is repre¬

ern

sented in Sutro Bros. & Co.'s
branch office at 625 Madison

new

Ave;,

New

York City.
Customers men
provided with individual of¬

are

fices in order to

assure

privacy for

customer discussions and

tions.

"

/W ".'7 7.7;• .7

Equipment
offices

new

and

are

transac¬

.-

fittings

of

the

in line with mod¬

decor, in accordance with the

current

trend

in

Wall

Street.

TRADING MARKETS

Botany Mills
Campbell Co. Com.
Fashion Park

Indian Head Mills

Morgan Engineering

Washington is always full of
surprises and one of the more

hearts

minded,

usual

social

the

it

United States Envelope

decision

but 2.2 mil¬

With

backing

three better in compounding

or

-

normal when it

was

as

ministration

since

World War H.

employed,
"unemployment" was ridic¬
ulously below the "frictional"
and

the

trol

A. S.

Projects Banking Inquiry

were

last session pri-.

the Democrats will, if they con-

Federal

surplus

surtax

is

universities from the East to the

environs of Lake Michigan.

And

responsible

continuous

and

probably will

ministration

ern

toward its creditors, having had
Government

a

regulatory pat¬

stock;-

taxed at the 52%

1

legislation passed.

Under

petitively in what they can pay
on
savings. Commercial banks j
are usually limited in mortgage /

to

in-

r

other

ar-

taxa-'

however,

the
Banking Act of
1935, as well as in banking laws
high-yielding securities exclu¬
and
regulations for almost a
sively. " Consequently"" they are r.:;
at
a
century, Congress has steadily
great disadvantage com-1

>

1957.

;

it

interesting
of

of

Committee

last

session

Federal

surprises
some

the
at

of

the

Senate
the

was

the

stouter

National Co.-

Carl Marks

Banking

end

of

FOREIGN

SECURITIES

the
50 BROAD STREET

to modernize all the

laws

relating to bank¬
ing and credit.
Senator A. Willis Robertson of

Virginia is the leading spirit in

TEL:

HANOVER 2-0050

*'■

&

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

Riverside Cement

Sightmaster Corp.

lerner & co.
Investment

10 Post Office

T!T

/i-/ ^

->

"""" \

v

Securities

Square, Boston 9, Mass.

Telephone
HUbbard 2-1990

!

the unin¬

opposition.

stead,

bank

is that the savings and loan in¬

other hand,

all

fact,

J

that small busi¬

so

Administration

I

political

on

switching the cor-*

"normal"

in the

tration's

put them more on a parity with
The

mort¬

on

their money.

channel

cannot

stopped

equal¬

or

j

marily because of the Adminis¬

■,

savings and loan asso¬
are
specialized

on

commercial

mortgages

on

j

-

would get the 20% rate was

ness

relating

the S. 8c L's.

which

banks,

The idea of

poration

"moderniza¬
laws

-

con¬

taxes

tion, why not business?"

effect,

of

logical

lower

progressive rates of

pay

share¬

one

a

Federal

liberalize

to

lending

no

deal to sell newly-mined

gold at
dian

as

in

company
on

long-term

far

is

its

still

demagogic appeal to

ize the tax status of the latter, to

7 deposits into mortgages

dis¬

regard of the U. ,S. Government
toward

situation

still

a

formed population with the
:7 gument, ^"individuals have

to

With this specialized out¬
let, they can earn a minimum
[of/4%%; and usually 5% or

ounce.

spite

the

toward
of

rates around

tion"

re¬

gages.

mium, the official price of $35

In

to

to

:

/

equalizing of this competi¬

achieved

be

*

& L. Status
has chartered

institutions

ury, it- would have to content
itself w'ith receiving on any gold
it did not sell at a market pre¬

per

entitled

Furthermore, the idea of "pro-,
igressive"
corporation
income
taxation is likely to have a neat

things that MIGHT theoretically

President "

former
*

Hoover.

:

it for¬

ounce,

An

tive

the

a

12%,
and
fhat 12% are

holders as dividends, in
as interest on deposits.

.

instance/ it has seen

sored

Canadian gold mine elects
sell gold above the official

an

to

.

against

exceed

distributed

not

and

to

happened

reserves

above

earnings

Home Loan Bank System, spon¬

a

ing

certain deceased English "econ¬
or at some of the "best"

"deposits"

.

If

incomparably

omists"

has

as

their

if

other

corporation income
such except when

escape

taxation

A" and

the

on

banking and credit, as pro¬
markably successful rival, for
posed by Senator Robertson. It
long-term savings arise in the f r
might theoretically be possible

who

is not something that is
earned, but something that is
manipulated in supply accord¬
money

lot

A

For

possibility
by

Ohio

of

loans,

and

and

of
by

banking
industry
since the Banking Act of '1935.

the

or

Bricker

W.

commercial

sources

utilized

been

John

or

Canada

this

Act

MC'd

was

Wallace F. Bennett of Utah.

has

inflation in the economy.

or

i

is

Established

contender

>

might want gold as,a
hedge against either a deflation

contest on between the
Big
Brother
and

larity
the

either

States,

Banking

latter

v

Virginia. Others who are back- j
ing, this
enterprise
include 1
Chairman J. William Fulbright |
of Arkansas, another Democrat, J
'and two Republicans, Senators

.

time

the

in
The

1935.

Sought

some

authoritative

in

know

sons

the

than another,
a
big popu-

line

when there

Not

for

as-'

United

one

of

trustee

Democratic

for

tion .party
For

that

show

to

better

a

'

foreign¬
ers io purchase, and legally own
newly-mined gold in Canada at
a
price above the official gov¬
ernment price, the same as the
U. S., of $35 per ounce. Yet so
far

pavements in the remoter con¬
man

For

can

permitted Canadians

>In

may

demagogues.

ings

the late Senator Carter Glass of

happy

a

position "small busi- 7

is

"small business" and still higher
taxes on "big business."

other business corporation. Sav¬

in¬

hand, not being stock com¬
panies/ are legally cooperatives

volved

;

current

Canada

;

popularity contest going on.

Commitete

not

is

perhaps rival the overhaul of
banking and credit laws in-

!

legislate inflation in
boiling boom only j'
with the apprehension that the !:
inflation might
be felt in a
distressingly short time.
the

j

Monday

is

it

which

enterprise,

tended to be reminiscent of and

.

;

all

in

•?

first

the

this

put into

get to

Once the Administration
the

.

clusion

then

i

No-

after

would

,

slaying the golden
American
business

farther

that the gov-

money

mortgages.

and profits. There

tic

•

Wages.

would

latter

the

Demo-

greater
preferential tax
rate,
however, it won't take Congress
long to carry the thing much

•

Expanding

the

the

hope of killing this

for

of

takes

-

borrowing

Ever

of

best

-alone.

opening

the

not get

graduated

a

in

is laying the heavy tax
is to leave the present corporation income tax schedule

ness"

to

achieve

for

eggs,

the industrial

pressures on

Some

H.

had

(D., HI.)
tiis staff to study
Douglas

<

Paul

ther

proposal

likely be *

can

-which

price of putting fur¬

a

Economy

Chairman of the Joint Economic

Senator

at

so

first

.

companies

detached economic analysis, the

Committee,;

The

•

Credit push

into

the

platform.

goose

Favorers

the

government

:

.

corporation

on

favored

scheme

the spigot for government-spon¬
do

<

'That

-

sored FIIA's and VA's, they may

hearing, which before the steel
strike was settled, was widely
anticipated.

if

Easing Housing

the

the

of

sign

a

j

of

current.

and

Specifically,

prices if the
tjloated capitalists of Big Steel
would just forego a few of their
tat profits.
A.

of;

which

measurable

this in higher steel

shortage

a

and

was

cratic

they;, do so; only;-at _a~
is
likely
to
be

jective,
-,

organized labor contended, that
there is no need for paying for

There

of

"progressive"

or v

proposal

tax

materials, manpower, AND
money.
It will do them little
good to huff, and puff, for if
they
inflate
the
volume
of
money
for any particular ob¬

relationship which 7
determines that when the steel

of

segment

bring it about

•The

cians appear to be running into
a
situation in which there is a„„

concatenation

of cause

kind

the

is

effect

and

of

instead

20%

that Of the Cabinet Committeei

ington the sun comes out in the
"limiting the, disc^etiohv.of ' the',
middle of the afternoon follow-'"
viewers with alarm. The politi¬
(

A

be

considerable

graduated

to

effect of

the

first $25,000

should

rates of taxation

Limited

having

the

pro¬

corporation

leftist sentiment favors the idea

■

This

This

that the

on

the

of

Committee

Business.

was

rate

income

-

mid-summer Wash-

in

When

Cabinet

of the persent 30%.

Ever

the

to
Expanding Economy.
necessary

Discretion

—

posal
tax

shortage of steel, the basic com¬

modity

Small

on

un¬

than

Already, after the steel strike,
there is a rising possibility of a

wages.
~

under

work

not

to

employment compensation
to work continuously.

gradu¬

on corporation income.
.This is likely to be the effect of

.

didn't happen here.

the

of

cause

ated tax

X " ww

.Teletype
BS 69

: